BNY Mellon Records Slimmer 3Q Profit, Revenue

By Matt Grossman

Bank of New York Mellon Corp. Friday posted a smaller profit in the latest quarter, with fee- and interest-based revenue declining as the custodian bank grappled with the economic fallout of the coronavirus pandemic.

The New York City-based company logged a third-quarter profit of $876 million, or 98 cents a share, compared with a profit of $1 billion, or $1.07 a share, in the same three-month period a year earlier.

Analysts polled by FactSet had forecast earnings of 94 cents a share.

Revenue was $3.85 billion, down from $3.86 billion in last year's third quarter. Analysts had forecast revenue of $3.83 billion.

BNY Mellon's third-quarter fee revenue was $3.11 billion, down from $3.13 billion in the year-ago period. The decrease reflected higher money-market fee waivers, partially offset by higher client balances and activity in some segments, the company said. Net interest revenue fell to $703 million in the quarter, compared with $730 million in the equivalent quarter last year, as interest rates declined in the wake of the coronavirus pandemic.

The bank's provision for credit losses was $9 million, which it said reflected a relatively consistent macroeconomic outlook compared with the second quarter. In the previous three-month period, the bank's provision for credit losses was $143 million.

Non-interest expenses increased 4% in the quarter.

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(END) Dow Jones Newswires

October 16, 2020 07:04 ET (11:04 GMT)

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