Bank of New York Mellon Corp (NYSE:BK) raised profits in its latest quarter as cost cuts offset turbulent equity, money and currency markets.
In the three months to March, the custody bank posted net profits of US$804mln, 73c per share, from US$766mln and in line with market forecasts.
BNY Mellon's income is sensitive to movements in money rates and total revenues were 1.6% lower at US$3.73bn.
Provisions for credit losses were US$10mln, up from US$2mln in the comparable quarter, but down from US$163mln in the previous three months.
Costs dropped by 3% and there was an US$1bn net inflow of flows driven largely by liability-driven investments
"In challenging market conditions, we generated solid earnings growth as we executed on our strategic priorities," chief executive Gerald Hassell said.
Assets under management were US$1.64trn at the end of the quarter, down 4.5% from a year earlier but up 0.9% from the previous three months.
Net interest revenue increased by 5% from a year earlier to $766mln as the bank’s net interest margin rose to 1.01% from 0.97% this time a year ago.