UPDATE: BNY Mellon Posts Upbeat Q2 Profit

The Bank of New York Mellon

reported better-than-expected second-quarter net income. The New York-based bank's quarterly profit, including preferred dividends, fell to $554 million, or $0.48 per share, versus a year-ago profit of $831 million, or $0.71 per share. Excluding the charges related to investment management funds and severance of $0.14 per share, the bank earned $0.62 per share. Its revenue dropped 7% to $3.75 billion versus $4.03 billion, while adjusted revenue fell 2% to $3.73 billion versus $3.8 billion. However, analysts were expecting earnings of $0.56 per share on revenue of $3.74 billion. BNY Mellon's assets under management increased 15% to $1.64 trillion, while assets under custody and administration surged 9% to $28.5 trillion. Its investment services fees fell 1% y/y to $1.7 billion. Gerald L. Hassell, chairman and chief executive officer of BNY Mellon said, "Our commitment to aggressive expense control is paying off as operating expenses declined both sequentially and year over year. Consistent with our culture of continuous productivity improvement, we recently announced further streamlining actions that are expected to benefit our expense run rate beginning in the second half of the year." BNY Mellon shares fell 0.66% to $37.75 in pre-market trading.