BNY Mellon Records Slimmer 3Q Profit, Revenue
October 16 2020 - 7:19AM
Dow Jones News
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.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
October 16, 2020 07:04 ET (11:04 GMT)
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