UPDATE: Bank of New York Mellon Posts Better-Than-Expected Q3 Profit

The Bank of New York Mellon

reported stronger-than-expected profit for the third quarter. The New York-based bank reported quarterly earnings of $1.08 billion, versus a year-ago profit of $975 million. On a per-share basis, the bank's profit rose to $0.93 from $0.82. Excluding certain items, its earnings gained to $0.64 from $0.61 per share. Its revenue climbed 22% to $4.61 billion. However, analysts were expecting earnings of $0.61 per share on revenue of $3.98 billion. Investment management and performance fees rose 7%, while assets under management increased 7% y/y to $1.65 trillion Investment services revenue gained 5% y/y, while assets under custody and/or administration gained 3% y/y. Bank of New York Mellon's net interest margin shrank to 0.94% versus 1.16%. Total fee and other revenue increased 29% to $3.85 billion. The company repurchased 11.0 million common shares for $431 million in the quarter. "We had a strong quarter. We grew Investment Management and Investment Services fees, controlled expenses and executed on our capital plan. During the quarter, we also repositioned the Markets Group, which will improve our operating margin and return on capital. We achieved this despite a challenging environment, demonstrating the resilience of our business model and the exceptional efforts of our employees," said Gerald L. Hassell, chairman and chief executive officer of BNY Mellon. Bank of New York Mellon shares rose 0.58% to close at $36.16 yesterday.