• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

BNY Q3 profit rises as assets under custody and administration top $50 trillion

by October 11, 2024
written by October 11, 2024

(Reuters) – BNY’s profit jumped 16% in the third quarter on higher investment services fees as assets under its custody and administration exceeded the $50 trillion mark for the first time, the world’s largest custodian bank said on Friday.

The bank’s fees, typically calculated as a percentage of the assets under custody, benefited from a market rally that boosted their value as well as acquisition of new clients.

Economic resilience and expectations of an interest rate cut cycle, which began in the final month of the quarter, prompted clients to keep up their investment activities and bolstered BNY’s bottom line.

Net interest income (NII) – the spread between earnings from assets and costs on liabilities – also jumped 3% as yields from BNY’s bond investments offset the impact of higher deposit costs. Analysts had expected a 1.3% drop in NII, according to estimates compiled by LSEG.

Profit applicable to BNY shareholders was $1.11 billion, or $1.50 per share, for the three months ended Sept. 30, compared with $958 million, or $1.23 per share, a year earlier.

Assets under custody and administration were $52.1 trillion, 14% higher than last year.

SECURITIES BUSINESS SHINES

Total fee revenue grew 5% from a year earlier to $3.40 billion. Asset servicing – the unit responsible for safekeeping and settlement of trades – fetched 5% higher revenue.

Meanwhile, issuer services, which caters to clients issuing securities, saw a 1% jump.

As a crucial intermediary in the financial system, the 240-year-old bank’s results are significant because they often reflect broader market trends.

“Our actions to run our company better, including our ongoing transition to a platforms operating model, are starting to deliver progress toward our medium-term financial targets and additional capacity to reinvest for growth,” CEO Robin Vince said.

So far this year, BNY’s shares have gained 43% while peers State Street (NYSE:STT) and Northern Trust (NASDAQ:NTRS) are up 15% and 8%, respectively.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
JPMorgan profit drops on bigger provisions for loan losses
next post
Nippon Steel to sell Calvert JV to ArcelorMittal if U.S. Steel deal completed

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • How has USD strength impacted European equities?
    • European stocks rebound, Remy Cointreau struggles

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy