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BNY Mellon profit gets boost from higher interest rates
[BENGALURU] Bank of New York Mellon Corp reported a higher-than-expected rise in quarterly profit, helped by an increase in interest rates.
The second-quarter results come on the heels of the appointment of a new chief executive.
The world's largest custodian bank appointed former Visa's head as chief executive earlier in the week. Charles Scharf, the new CEO, will focus on boosting organic growth, the company said.
The bank's net income attributable to common shareholders rose 12 per cent to US$926 million or 88 US cents per share for the quarter ended June 30.
The earnings beat average analysts estimate of 84 US cents per share, according to Thomson Reuters I/B/E/S.
Adjusted revenue rose about 5 per cent to US$3.95 billion and topped expectations of US$3.89 billion.
Total adjusted costs rose 1.4 per cent to US$2.59 billion.
BNY Mellon had US$31.1 trillion in assets under custody and administration at the end of March.
The bank's massive platform is a key part of the plumbing that keeps global financial markets flowing.
Besides safeguarding the stocks and bonds of large institutions, the bank calculates mutual fund prices, trades foreign currencies and facilitates securities lending to enable short selling by hedge funds.
BNY Mellon shares were marginally up at US$53.48 in premarket trading. Up to Wednesday's close, the stock had gained 12 per cent in value, outperforming the broader S&P 500 Financial that has risen 6.6 per cent.