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CORRECTED-BNY Mellon profit gets boost from higher interest rates
July 20, 2017 / 10:53 AM / 2 months ago

CORRECTED-BNY Mellon profit gets boost from higher interest rates

(Corrects to June from March in paragraph eight)

July 20 (Reuters) - Bank of New York Mellon Corp reported a higher-than-expected rise in quarterly profit, helped by an increase in interest rates.

The second-quarter results come on the heels of the appointment of a new chief executive.

The world’s largest custodian bank appointed former Visa Inc’s head as chief executive earlier in the week. Charles Scharf, the new CEO, will focus on boosting organic growth, the company said.

The bank’s net income attributable to common shareholders rose 12 percent to $926 million or 88 cents per share for the quarter ended June 30.

The earnings beat average analysts estimate of 84 cents per share, according to Thomson Reuters I/B/E/S.

Adjusted revenue rose about 5 percent to $3.95 billion and topped expectations of $3.89 billion.

Total adjusted costs rose 1.4 percent to $2.59 billion.

BNY Mellon had $31.1 trillion in assets under custody and administration at the end of June.

The bank’s massive platform is a key part of the plumbing that keeps global financial markets flowing.

Besides safeguarding the stocks and bonds of large institutions, the bank calculates mutual fund prices, trades foreign currencies and facilitates securities lending to enable short selling by hedge funds.

BNY Mellon shares were marginally up at $53.48 in premarket trading. Up to Wednesday’s close, the stock had gained 12 percent in value, outperforming the broader S&P 500 Financial that has risen 6.6 percent. (Reporting by Sweta Singh in Bengaluru; Editing by Shounak Dasgupta)

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