Q4 result
The net profit of the world's largest custodian bank Bank of New York Mellon Corp. (BNY Mellon) fell almost twice to $702 million from $1.39 billion in the same period of the previous year. Earnings per share fell to $0.79 from $1.52.
According to the bank's press release, the figure includes one-off write-downs of $159 million, or $0.18 per share, related to litigation costs, as well as losses incurred from the sale of the business and real estate expenses, among others.
Earnings excluding non-recurring factors were $861 million, or $0.96 per share, compared with $931 million, or $1.01 per share, a year earlier.
BNY Mellon's October-December revenues fell 20% to $3.84bn.
However, experts on average had projected the bank's adjusted earnings at $0.91 per share on revenue of $3.83bn.
The bank's net interest income fell 17% to $680 million last quarter, reflecting lower interest rates as a result of the pandemic crisis as well as the results of hedging operations.
Chief executive officer of Bank of New York Mellon Todd Gibbons said: "The impact of low interest rates will remain a major challenge for the bank in 2021".
BNY Mellon's fee and commission income fell 21% to $3.12 billion in the 4th quarter.
Assets under management at the bank rose 15% to $2.2 trillion and assets in trust accounts at the bank rose 11% to $41.1 trillion.
BNY Mellon shares lost 6.3 percent in trading on Wednesday. They are down 8.2 per cent over the past 12 months.
Bank of New York Mellon Corp., which was formed July 1, 2007 from the merger of Bank of New York Co. and Mellon Financial Corp., operates in 35 countries.
