US – The Bank of New York, posting a 37% rise in securities services fees, says it is seeing “strong new business momentum” in global custody.

“Strong new business momentum in global custody and higher equity prices drove investor services fees higher on both a sequential quarter and year-over-year basis,” BoNY said. As at September 30 it had 7.9 trillion dollars in assets under custody – up from 7.8 trillion dollars at June 30 and 6.6 trillion dollars a year ago.

The bank said that securities servicing fees rose to 657 million dollars from 480 million dollars. “Excluding Pershing, securities servicing fees increased 1.2% over the second quarter, or five percent annualised, led by global custody, broker-dealer services and mutual fund services.”

BoNY bought stock-processing business Pershing from Credit Suisse First Boston earlier this year for two billion dollars.

Asset management and private client services fees grew to 97 million dollars from 85 million dollars. Total assets under management rose to 85 billion dollars, from 83 billion dollars at June 30 this year and 71 billion dollars a year ago.

Overall, the bank’s net income rose to 260 million dollars in the period from last year's 79 million dollars.

"New business wins and the general improvement in market tone assisted us in achieving a second consecutive quarter of improving operating earnings, in spite of the normal seasonal slowdown in equity transaction volume,” said chairman and chief executive Thomas Renyi.

"Overall, the continued firming of the global capital markets bodes well for our business model. Pershing in particular is well positioned to benefit from the increased level of confidence shown by the retail investor."

On Tuesday, Pittsburgh-based Mellon Financial posted a drop in third-quarter net income to 181 million dollars from 191 million dollars. Its assets under management rose 11.2% to 625 billion dollars.

Topics