The Bank of New York Mellon (BNY Mellon) has reported third quarter net income applicable to common shareholders of $820m, or $0.74 per diluted common share, a decrease of 23% compared with $1.07bn or $0.93 per diluted common share a year ago.
For the quarter ended 30 September 2015, total revenues were $3.8bn, down 18% compared to $4.6bn year-over-year.
The bank’s assets under management remained flat at $1.63trn reflecting higher market values, the Cutwater acquisition and net new business offset by the unfavorable impact of a stronger US dollar.
Assets under custody and/or administration totalled $28.5trn, up 1% reflecting net new business, partially offset by the unfavorable impact of a stronger US dollar and lower equity market values.
Noninterest expense was $2.7bn, a decrease of 10%, or 3% (Non-GAAP) excluding litigation and restructuring charges.
For the third quarter of 2015, net long-term outflows totalled $5bn driven by index, equity and fixed income investments, partially offset by liability-driven and alternative investments, while net short-term outflows totalled $10bn.
The group’s asset servicing fees were $1.1bn, an increase of 3% year-over-year and flat sequentially. The rise primarily reflects organic growth in the global collateral services, broker-dealer services and asset servicing businesses, and net new business, partially offset by the unfavourable impact of a stronger US dollar.
Clearing services fees were $345m, an increase of 2% year-over-year and a decrease of 1% sequentially due to higher mutual fund and asset-based fees.
Issuer services fees were $313m, a decrease of 1% year-over-year and an increase of 34% sequentially, while treasury services fees were $137m, a decrease of 4% year-over-year and 5% sequentially.
The company said that investment management and performance fees reached $829m, a decrease of 6% both year-over-year and sequentially primarily reflecting lower equity market values, net outflows and seasonally lower performance fees.
BNY Mellon chairman and CEO Gerald Hassell said: "We are enhancing our risk management and regulatory compliance practices, investing in technology platforms for the future and have onboarded employees associated with two strategic relationships while simultaneously controlling expenses.
"This quarter, we completed the move to our new corporate headquarters, ahead of schedule, creating an open environment that supports innovation and collaboration.
"We returned more than $875 million to our shareholders in the form of share repurchases and dividends during the
quarter while achieving a 21 percent return on tangible common equity," he added.