Net interest income rose 15% on securities reinvested at higher yields
Bank of New York Mellon reported third-quarter net income of $1.61 billion, up from $1.34 billion a year earlier, with total revenue climbing 12% to $5.68 billion and beating analyst estimates of $5.55 billion.
Net income applicable to shareholders totaled $1.61 billion, or $2.34 per share, for the quarter, compared with $1.34 billion, or $1.88 per share, in the year-ago period. Adjusted earnings, which strip out one-time items, came in at $2.37 per share, ahead of the $2.27 FactSet consensus.
Net interest income rose 15% in the quarter, a gain the bank attributed in part to the reinvestment of securities at higher yields.
Fee revenue rose 12% to $4.08 billion. The bank said the increase reflected new business, higher client activity and higher market values.
Higher revenue-related expenses pushed noninterest expense up 8%, a modest counterweight to the revenue gains.
“The current operating environment is constructive but uneven,” Chief Executive Robin Vince said. Vince added that client demand grew in the quarter, while sales and pipelines remained healthy across products and customer segments.
Katherine Hamilton reported for The Wall Street Journal.