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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)
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