Register for Digital Look

Bank of New York falls short of estimates as fee revenues slip

By Iain Gilbert

Date: Wednesday 17 Apr 2019

Bank of New York falls short of estimates as fee revenues slip

(Sharecast News) - Bank of New York Mellon\'s quarterly profit figures fell short of analysts\' estimates on Wednesday, with lower client activity and declining assets under management pressuring fee revenues.
The US bank saw fee revenues drop 9% to $3.03bn in the first quarter, dragging overall revenues down 6.7% to $3.90bn in the process. Asset servicing revenues dropped 7.4% to $1.41bn, while asset management revenues sank 17% to $637m.

Bank of New York attributed the weaker fee revenues to asset under management outflows and lower client activity throughout the quarter.

As a result, BNY\'s profits fell to $910m, or $0.94 cents per share, down from the $1.10 per share recorded a year earlier and just short of the $0.96 per share expected on the Street.

BNY also incurred $7m in provisions for credit losses after a California utility declared for bankruptcy.

Looking forward, chief executive Charlie Scharf said: \"While the current expectations for the yield curve will likely negatively impact our revenue growth for the next several quarters, we will remain disciplined on expenses.\"

As of 1340 BST, BNY shares had dipped 0.45% in pre-market trade to $53.20 each.

..

Email this article to a friend

or share it with one of these popular networks:


Top of Page