FILE PHOTO: The Bank of New York Mellon Corp. building at 1 Wall St. is seen in New York’s financial district March 11, 2015. REUTERS/Brendan McDermid
(Reuters) – Bank of New York Mellon Corp missed analysts’ estimates for quarterly profit on Wednesday, as lower client activity and a fall in assets under management pressured fee revenue.
A 9 percent drop in fee revenue to $3.03 billion pulled down overall revenue by 6.7 percent to $3.90 billion.
Asset servicing revenue fell 7.4 percent to $1.41 billion, while asset management revenue plummeted 17 percent to $637 million, the company said.
BNY blamed asset under management outflows and lower client activity for a decline in its fee revenue.
The bank said net income applicable to common shareholders fell to $910 million, or 94 cents per share, in the first quarter ended March 31, from $1.14 billion, or $1.10 per share, a year earlier. (reut.rs/2ZlhuuP)
Analysts were expecting earnings of 96 cents per share, according to IBES data from Refinitiv.
“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..,” said Chief Executive Officer Charlie Scharf.
The New York-based custodian bank said it incurred provisions for credit losses of $7 million due to the bankruptcy of a California utility.
Reporting by Bharath Manjesh in Bengaluru; Editing by Sriraj Kalluvila and Shailesh Kuber