Bank of N.Y. Mellon profit off 23 percent, but tops estimates

Send a link to a friend  Share

[October 20, 2015] BOSTON (Reuters) - Bank of New York Mellon Corp on Tuesday reported that third-quarter profit fell 23 percent from the year-ago period that included one-time gains but topped estimates, and said noninterest expenses fell as it cut staff costs.

The large custody bank has been under pressure from activist hedge fund Marcato Capital Management, which said the company has too many employees. [http://reut.rs/1W2Ukop]

BNY Mellon said it had 51,300 full-time workers at Sept. 30, 400 more than a year ago, but cut total staff costs to $1.44 billion in the quarter from $1.48 billion a year earlier, reflecting a stronger U.S. dollar, a curtailed U.S. pension plan and lower incentive expenses.

BNY Mellon Chief Executive Officer Gerald Hassell said the company is investing in its technology platforms after it roiled much of the U.S. mutual fund industry in late August, when an accounting systems it uses to generate prices for funds collapsed. The problems lasted more than a week and affected about $400 billion in assets. [http://reut.rs/1kkLxgG]

For the three months ending Sept. 30, net income fell to $820 million, or 74 cents a share, from $1.07 billion, or 93 cents per share, in the same period a year earlier.

Adjusted for items including the sale of its One Wall Street building and stake in Hong Kong bank Wing Hang Bank Ltd, net income in the year-ago quarter was $734 million, or 64 cents per share.

Analysts surveyed by Thomson Reuters I/B/E/S expected earnings of 71 cents per share in the most recent quarter.

Assets under custody and administration, a key measure, were $28.5 trillion at Sept. 30, flat from the prior quarter but up 1 percent from a year ago.

Revenue was $3.79 billion, down 18 percent from a year ago, but up 1 percent on an adjusted basis.

(Reporting by Ross Kerber Editing by W Simon and JS Benkoe)

[© 2015 Thomson Reuters. All rights reserved.]

Copyright 2015 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 

Back to top