US – Three large US custodian banks – Mellon, Northern Trust and State Street - reported first-quarter assets under custody today.

Pittsburgh-based Mellon Financial said assets under custody or administration increased 25% to a record $4.125trn (€3.35trn). Assets under management were up 11% at $808bn.

Mellon’s net income slipped to $202m from $305m a year before, reflecting a one-off gain from the sale of its Shinsei bank stake last time. Total revenue excluding this was up 18% at $1.3bn.

“We continued to enjoy excellent growth in the profitability of our asset management and asset servicing businesses, as pre-tax income in these sectors on a combined basis increased 23% compared to the first quarter of 2005, driven by new client wins, strong investment performance and relatively strong capital markets,” said new chairman and chief executive Robert Kelly.

Chicago’s Northern Trust disclosed that custody assets were up 19% to $3.1trn while AUM rose 11% to $653bn. Northern reported a 17% increase in net income to $163m, with revenue up 20% at $743m.

“Exceptional growth in both our private client and institutional businesses was a major contributor to these results,” said Northern CEO William Osborn.

State Street of Boston revealed that assets under custody rose 13% to $10.7trn as assets under management at State Street Global Advisors rose 12% to $1.5trn. Its net income was up 25% at $282m on revenue of $1.5bn.

“Our fee revenue continues to be strong across all business units and geographies, especially management fees from State Street Global Advisors,” said CEO Ron Logue.

The Bank of New York reports its first-quarter earnings on April 20.

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