January 23, 2015 / 1:07 PM / 3 years ago

BNY Mellon, State Street get profit boost from forex trading

A BNY Mellon sign is seen on their headquarters in New York's financial district, January 19, 2011. REUTERS/Brendan McDermid

(Reuters) - BNY Mellon Corp and State Street Corp, the world’s two largest custody banks, said on Friday their fourth-quarter profits got a boost from a surge in volume and volatility in foreign currency markets.

Foreign exchange revenue at New York-based BNY Mellon, the No. 1 custody bank, surged 31 percent to $165 million from year-ago levels as currency markets underwent more volatility. The bank’s total fourth-quarter revenue of $3.69 billion was 2 percent higher than the year-ago period.

BNY Mellon Chief Executive Officer Gerald Hassell, who has been under pressure from shareholders and analysts to rein in costs, also said the bank cut staff expenses by 7 percent compared with the year-earlier period.

BNY Mellon reported adjusted earnings of $667 million, or 58 cents a share, compared with $629 million, or 54 cents a share.

At Boston-based State Street Corp, BNY’s largest rival, adjusted net income available to shareholders was $582 million, or $1.37 cents a share. That compared with $514 million, or $1.15 a share, in the fourth quarter of 2013.

State Street said fourth-quarter revenue from foreign exchange trading was $168 million, up 34 percent from the year-ago period. Total operating revenue was $2.72 billion, compared with $2.53 billion in the year-ago period.

BNY Mellon ended 2014 with $28.5 trillion in assets under custody and administration. That was slightly ahead of State Street’s total of $28.2 trillion.

Reporting By Tim McLaughlin; Editing by Chizu Nomiyama

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below