BNY Mellon’s asset servicing division experienced a good Christmas, with 4Q 2012 results for the bank reporting that assets under custody were up 9 percent year-on-year.
Assets under custody/administration amounted to $26.7 trillion at 31 December 2012, an increase of $100 billion sequentially.
The year-over-year increase was driven by higher market values and net new business. The sequential increase reflects net new business, said the bank.
AUM amounted to a record $1.4 trillion at 31 December 2012, an increase of 10 percent compared with the prior year and 2 percent sequentially.
Both increases primarily resulted from higher market values and net new business. Long-term inflows totaled $14 billion and short-term outflows totaled $6 billion for Q4 2012. Long-term inflows benefited from fixed income and liability-driven investments.?
Investment services fees totaled $1.6 billion, an increase of 1 percent year-over-year and a decrease of 5 percent sequentially. The year-over-year increase was primarily driven by higher asset servicing revenue as a result of net new business, improved market values and higher collateral management revenue, as well as higher volumes in clearing and treasury services.
This increase was partially offset by the impact of the sale of the shareowner services business in Q4 2011 as well as lower depository receipts and corporate trust revenue.
Sequentially, the decrease primarily resulted from a $107 million decrease in depository receipts revenue largely reflecting seasonality and lower securities lending revenue.
This was partially offset by higher asset servicing revenue driven by higher collateral management revenue, and higher clearing and treasury services revenue.?
