BNY Mellon's profit beats estimates on higher fees
(Reuters) - BNY Mellon Corp (BK.N: Quote) on Wednesday reported a higher-than-expected quarterly profit on rising fees from managing money, increased mutual fund balances and strength in foreign currency trading.
The world's largest custody bank by assets earned $967 million, or 82 cents a share, in the third quarter, compared with $720 million, or 61 cents a share, a year earlier.
But without a benefit from a U.S. Tax Court decision, BNY Mellon said earnings were 60 cents a share. That beat the analysts' average estimate of 58 cents, according to Thomson Reuters I/B/E/S.
Investment services fees rose 4 percent to $1.7 billion, partly reflecting higher mutual fund and asset-based fees.
Meanwhile, investment management and performance fees rose 5 percent from year-earlier levels to $821 million. The gains reflected new business and a rising stock market in the third quarter.
Foreign exchange revenue surged 27 percent to $154 million on higher volumes and volatility.
(Reporting by Tim McLaughlin; Editing by Lisa Von Ahn)
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