Bank of New York Mellon (BNY Mellon) announced higher earnings in the third quarter, driven by rising interest rates that resulted in increased revenue.

Strong Financial Performance

  • BNY Mellon reported a profit of $1.04 billion, or $1.22 per share, compared to $388 million, or 39 cents per share, in the same quarter last year.
  • The adjusted earnings, excluding one-time items, stood at $1.27 per share, surpassing analyst expectations of $1.16 per share.
  • The bank's revenue for the quarter reached $4.37 billion, beating forecasts of $4.32 billion.

Revenue Breakdown

  • Fee revenue remained stable at $3.25 billion, largely due to higher market values and net new business.
  • The bank's divestiture of Alcentra and lower foreign exchange volatility and volumes had a partial offsetting impact on fee revenue.
  • Net interest revenue increased by 10% to $1.02 billion, driven by higher interest rates.

Assets Under Management

  • BNY Mellon's assets under management rose by 3% to $1.8 trillion.

Provision for Credit Losses

  • The provision for credit losses in the quarter totaled $3 million, compared to a benefit of $30 million in the same period last year.

BNY Mellon's improved financial performance reflects the positive impact of rising interest rates and effective management of its portfolio.

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