LONDON (ShareCast) - (Sharecast News) - Investment bank BNY Mellon posted third-quarter profits that came in ahead of estimates on Tuesday thanks to a leg up from higher interest rates.
BNY Mellon said net interest revenue jumped almost 10% to $1.02bn, up from $926.0m during the same quarter a year earlier as higher interest rates benefitted banks across the board.

However, interest rates also left banks fearful of defaulted loans, such that BNY Mellon put aside $3.0m for credit losses in the quarter. In 2022, it released some reserves and reported a $30.0m benefit.

On an adjusted basis, BNY posted a profit of $1.27 per share for the third quarter, beating analysts' estimate of an EPS of $1.15 per share.

Total revenues rose 2% year-on-year to $4.4bn, while assets under custody or administration rose 8.3% to $45.7trn, principally due to higher market values and client inflows.

BNY Mellon added that average deposits fell 5.4% to $262.1bn.

As of 1310 BST, BNY Mellon shares were up 0.96% in pre-market trading at $42.24 each.









Reporting by Iain Gilbert at Sharecast.com

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