Bank of New York Mellon Corp.'s
BK
-.00%
fourth-quarter profit fell 15% and missed expectations as investment
charges offset improved market conditions and a growth in assets.
Trust banks such as BNY Mellon act as custodians and services for
corporations and Wall Street and earn most of their money collecting
fees for various servicing activities, such as safekeeping and
accounting. They make fewer loans than commercial banks and therefore
invest more of their deposits in securities, which has hurt earnings in
recent years because of low bond yields.
Through the year, the company reported strength in its core investment
services and investment management fees while benefiting from improved
market conditions, said Chief Executive Gerald Hassell.
BNY Mellon reported a profit of $539 million, down from $635 million a
year earlier. Per-share earnings, which reflect preferred dividends,
fell to 44 cents from 53 cents. The latest period's results include an
after-tax loss of 10 cents a share related to an equity investment.
Revenue slipped to $3.59 billion from $3.62 billion, and total fee revenue slid 1.5% to $2.76 billion.
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