BNY Mellon Profit Surges 48%

Bank of New York Mellon Corp. on Tuesday reported a 48% jump in profit in its second quarter, as the bank kept spending in check and grew revenue.

BNY Mellon, which acts as an investment manager while safeguarding trillions of dollars for money managers and other clients, has faced pressure in recent months from investors who criticized it as slow to change and in need of a retrenchment.

In May, the company agreed to pay $180 million to settle a foreign exchange-related class-action lawsuit, resolving almost all of its currently pending forex-related actions. The settlement came two months after the trust bank reached a $714 million settlement to resolve allegations it defrauded pension funds and other clients by overcharging them on currency transactions.

For the quarter ended June 30, BNY Mellon posted a profit of $853 million, up from $577 million in the prior-year period. On a per-share basis, which excludes preferred dividends, earnings rose to 73 cents from 48 cents a year ago.

Excluding litigation and restructuring expenses, per-share earnings were 77 cents.

Revenue grew 3.8% to $3.89 billion.

Analysts had projected 66 cents a share in earnings and $3.82 billion in revenue, according to Thomson Reuters.

Fee and other revenue edged up 2.9% to $3.07 billion.

Assets under management grew to $1.72 trillion, a 5.4% increase from the same period a year ago.

Noninterest expense fell 7.4% to $2.73 billion, helped by the stronger U.S. dollar and cost cuts.

Write to Chelsey Dulaney at [e-mail]

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