New York
21 April 2017
Reporter: Stephanie Palmer

Record-breaking Q1 for BNY Mellon


BNY Mellon saw record breaking levels of assets under custody and/or administration in Q1 2017, reaching a total of $30.6 trillion.

The record high reflects a 5 percent increase on assets under custody and/or administration in Q1 2016, which reached $29.1 trillion, and a 2 percent increase on the figure for Q4 2016, which reached just shy of $30 trillion.

New custody business for Q1 2017 reached a preliminary total of $109 million. Although this is down on the previous quarter, which saw new custody business of $141 million, it is a significant increase on Q1 2016, in which new custody business totalled $40 million.

BNY Mellon also saw an increase in assets under management (AUM) for Q1 2017, ending the quarter with a preliminary balance of $1.73 billion. This is a 5 percent increase on Q4 2016’s total of $1.65 billion, and also about a 5 percent increase on Q1 2016, which ended with a total AUM of $1.64 billion.

Asset servicing fees for Q1 2017 reached $1.06 billion, a marginal decrease on the $1.07 billion seen in the previous quarter.

However, this is a 2 percent increase on Q1 2016, which saw asset servicing fees totalling $1.04 billion.

The asset servicing fees include securities lending revenues of $49 million, a decline from the previous quarter’s revenue of $54 million, and also a marginal decrease on Q1 2016, which saw securities lending revenue of $50 million.

In total, investment services fees totalled $1.829 billion, a 3 percent increase on $1.774 billion earned in Q4 2016. This is also a 4 percent increase on the total investment services fees recorded in Q1 2016, which totalled $1.765.

According to BNY Mellon, the increases reflect net new business, including growth of its collateral optimisation solutions. The results are also partially attributed to higher money market fees, net new business and higher equity market values.

They are partially offset, however, by the unfavourable impact of a stronger US dollar and the effect of BNY Mellon downsizing its retail UK transfer agency business, the bank said.

Gerald Hassell, chairman and CEO of BNY Mellon, said: “Our performance in the quarter benefited from our investments in capabilities that address growing client demands in areas such as collateral optimisation for both the buy and sell side and middle-office services for asset managers.”

“In addition, our overall asset management flows improved to their highest levels since 2014 and assets under custody and/or administration hit a record level.”

He added: “The progress we are making in digitising our firm and harnessing emerging technologies should result in an increasingly distinctive client experience, new sources of value for our clients and reduced structural costs for our company. We see ourselves as being an investments platform company that integrates the best of what we and others have to offer for the benefit of our clients and the marketplace.”

More Industry news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
UCITS funds enjoy assets boom in Q2
18 September 2017 | Brussels | Reporter: Jenna Lomax
The latest growth figures represent the highest level of net sales recorded since Q1 2015
Gestar acquires ESG solution provider ISS
08 September 2017 | New York | Reporter: Stephanie Palmer
Genstar Capital is to acquire Institutional Shareholder Services (ISS), a provider of corporate governance and responsible investment solutions, from Vestar Capital Partners
AxiomSL expands European presence
07 September 2017 | London | Reporter: Stephanie Palmer
AxiomSL has opened new offices in Paris, Madrid and Frankfurt, in a bid to strengthen support for clients in those respective countries
World’s pension funds return to form in 2016
05 September 2017 | London | Reporter: Drew Nicol
The world’s largest pension funds increased their assets under management by 6.1 percent in 2016, and are now worth $15.7 trillion, according Willis Towers Watson
Northern Trust appoints new head of Southeast Asia
30 August 2017 | Singapore | Reporter: Jenna Lomax
Northern Trust has chosen Yen Leng Ong as its new country head of Singapore and head of Southeast Asia
SIX reports strong results for 2017 so far
30 August 2017 | Zurich | Reporter: Stephanie Palmer
The securities services business drove strong results for SIX during the first six months of 2017, recording an operating income of CHF 189.1 million (€165.65 million)
SS&C: manual processes still rife in client reporting
29 August 2017 | London | Reporter: Stephanie Palmer
Asset managers consider client reporting important, but a significant number still tackle the issue using manual processes, according to research from SS&C
More Industry news