BNY Mellon has released its figures for Q1 2015, revealing a 3 percent increase in asset servicing fees, increased assets under custody and administration, and a record high in assets under management.
Asset servicing fees increased by 3 percent year-on-year to reach $1 billion, a rise that reflects new net business driven by global collateral services, securities lending and market values.
This is also a 2 percent increase on Q4 2014. This jump has been attributed to higher client expense reimbursements and global collateral fees, as well as securities lending revenue. Both increases were partially offset by the unfavourable impact of a stronger US dollar.
Clearing servicing fees for the quarter were $344 million, an increase of 6 percent year-on-year and of 1 percent compared to the previous quarter.
This year-on-year increase was attributed primarily to higher mutual fund and asset-based fees, and higher clearance revenue driven by a higher DARTS volume. The decrease on Q4 was attributed simply to fewer trading days in Q1 2015.
Assets under management increased by 7 percent to reach a record high of $1.74 trillion. The rise was down to acquisitions and new net business, however it was also partially offset by the strength of the dollar.
Assets under custody or administration also increased, rising by 2 percent to reach $28.5 trillion. This figure reflects higher market values and net new business, and was also affected by the dollar.
The estimated value of new assets under custody and administration in Q1 2015 was $131 billion.
Foreign exchange revenue increased by 67 percent, driven by higher volumes and volatility, as well as more activity around depository receipts.
BNY Mellon revealed an 18 percent increase in revenue, year-on-year, totalling $766 million, or $0.67 per common share.
Total revenue increased by 6 percent year-on-year to $3.9 billion, and 4 percent on an adjusted basis, while total expense dropped by 1 percent, or 2 percent on an adjusted basis.
Gerald Hassell, chairman and CEO of BNY Mellon, said: “Our first quarter results reflect continued progress in executing on our strategic priorities.”
He added: “Our business improvement process is streamlining our organisation, utilising technology to increase efficiency and reducing our structural costs.”
