Bank of New York Mellon earnings match estimates as fee revenue remains flat

Bank of NY Mellon Corp.
BK,
-4.59%
said Tuesday it had net income of $905 million, or $1.12 a share, for the first quarter, up from $699 million, or 86 cents a share, in the year-earlier period. revenue rose 11% to $4.4 billion. The FactSet consensus was for EPS of $1.12 and revenue of $4.4 billion. Fee revenue was flat, while net interest revenue rose 62%. Assets under custody rose 2% to $46.6 trillion, assets under management fell 16% to $1.9 trillion, mostly due to lower market values, the impact of the strong dollar and the divestiture of Alcentra, the investment adviser that Bank of New York sold in November. By segment, securities services revenue rose 19%, while market and wealth services revenue rose 22% and investment and wealth management revenue climbed 14%. Average deposits fell to $167.2 billion from $192.2 billion a year ago. “While we will remain vigilant given the heightened uncertainty in the current environment, we are pushing forward with our strategic agenda to reinvigorate underlying growth by doing more for our clients across our extensive suite of products and services, while driving greater efficiency,” CEO Robin Vince said in a statement. The stock rose 1.7% premarket.