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BNY Mellon profit rises 29 percent on lower costs

Published 01/19/2017, 10:51 AM
Updated 01/19/2017, 11:02 AM
© Reuters. The Bank of New York Mellon Corp. building at 1 Wall St. is seen in New York's financial district

© Reuters. The Bank of New York Mellon Corp. building at 1 Wall St. is seen in New York's financial district

(Reuters) - Bank of New York Mellon (NYSE:BK) Corp said on Thursday fourth-quarter profit increased 29.04 percent as expenses fell and net interest revenue rose.

The world's largest custodian bank's net income attributable to common shareholders rose to $822 million in the three months ended Dec. 31 from $637 million a year ago.

Excluding items, BNY Mellon earned 77 cents per share, in line with the average analyst estimate, according to Thomson Reuters I/B/E/S.

Total revenue rose 1.75 percent to $3.79 billion but missed analysts' average estimate of $3.85 billion.

Provision for credit losses fell 95.7 percent to $7 million.

Revenue from interest rose nearly 9.3 percent to $831 million, driven by increase in interest rates and impact of interest rate hedging activities, the bank said.

The bank, which counts big institutional investors as its bread-and-butter clients, said non-interest expenses dropped 2.3 percent to $2.63 billion, helped by lower staff expenses.

Assets under management was $1.65 trillion as of Dec. 31, lower than $1.72 trillion as of Sept. 30.

© Reuters. The Bank of New York Mellon Corp. building at 1 Wall St. is seen in New York's financial district

The custodian bank, whose shares were unchanged in premarket trade, rose 29.21 percent in the last 12 months.

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