Bank of New York Mellon's 1Q Currency Revenue Fell 21%

Bank of New York Mellon Corp. (BK) said currency-trading revenue plunged in the first quarter on a drop in trading volume.

Revenue from its foreign-exchange business fell to $136 million in the quarter, down 21% from the same period a year earlier and 26% from the last quarter of 2011, the company said Wednesday.

Volatility in currency markets fell in early 2012 following a period of upheaval in the second half of last year surrounding the sovereign-debt crisis in Europe, which has led to a drop in demand for foreign-exchange services. Volatility decreased 20% in the quarter, the bank said.

"There continues to be softness in volumes and volatility, and it continues to impact our investment-services business," said Thomas P. Gibbons, vice chairman and chief financial officer, in a conference call with investors. "The volatility impact was very direct."

Several banks have reported declines in their currency businesses in the first quarter, as persistent uncertainty about the financial stability of Europe's peripheral economies kept investors on the sidelines. Goldman Sachs Group Inc. (GS) and State Street Corp. (STT) reported Tuesday their trading units, which include foreign exchange, suffered from lower revenue and volume during the period.

"It's not surprising with a low-growth environment for everyone across the board in slow economies that this kind of activity is viewed very, very competitively," said Gerald Hassell, Bank of New York's chairman and chief executive. "Our job is to try and capture as much volume that touches us as humanly possible."

The company's earnings fell 1% in the quarter to $619 million.

-By Matthew Walter, Dow Jones Newswires; 212-416-2910; matt.walter@dowjones.com

Order free Annual Report for The Bank of New York Mellon Corp.

Visit http://djnweurope.ar.wilink.com/?ticker=US0640581007 or call +44 (0)208 391 6028

Order free Annual Report for Goldman Sachs Group, Inc.

Visit http://djnweurope.ar.wilink.com/?ticker=US38141G1040 or call +44 (0)208 391 6028

Order free Annual Report for State Street Corp.

Visit http://djnweurope.ar.wilink.com/?ticker=US8574771031 or call +44 (0)208 391 6028

State Street (NYSE:STT)
Historical Stock Chart
From Jun 2024 to Jul 2024