BNY Mellon profit beats estimates on lower costs

[October 20, 2016]  (Reuters) - Bank of New York Mellon Corp reported a better-than-expected 18.8 percent jump in quarterly profit, helped by lower costs and a rise in net interest revenue.

A BNY Mellon sign is seen on their headquarters in New York's financial district, January 19, 2011. REUTERS/Brendan McDermid

The world's largest custodian bank said net income attributable to common shareholders rose to $974 million, or 90 cents per share, in the three months ended Sept. 30 from $820 million, or 74 cents per share, a year earlier.

Excluding items, the company earned $979 million, or 90 cents per share, beating the average analyst estimate of 81 cents per share, according to Thomson Reuters I/B/E/S.

Non-interest expenses dropped 1.4 percent to $2.64 billion.

Revenue from interest rose nearly 2 percent to $774 million.

Total revenue rose about 4 percent to $3.94 billion.

"Each of our businesses performed well," Chief Executive Gerald Hassell said in a statement.

BNY Mellon said assets under management rose 3.1 percent to $1.72 trillion in the third quarter from the second.

Up to Wednesday's close, the bank's shares had gained about 3 percent since the beginning of 2016.

(Reporting by Diptendu Lahiri in Bengaluru; Editing by Savio D'Souza and Sriraj Kalluvila)

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