BNY Mellon profit tops expectations

NEW YORK Tue Apr 20, 2010 7:13am EDT

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NEW YORK (Reuters) - Bank of New York Mellon Corp (BK.N) said on Tuesday first-quarter profit topped expectations, as rising financial markets boosted its assets under custody and fee revenue.

The trust bank reported a profit of $601 million, or 49 cents a share, in the quarter, compared with earnings of $363 million, or 31 cents a share a year earlier.

"The economic outlook is clearly improving as demonstrated by the performance of the equity and credit markets," Robert Kelly, BNY Mellon's chief executive, said in a statement.

BNY Mellon's total assets under custody and administration were $22.4 trillion at the end of the first quarter, up 15 percent from a year earlier but flat compared to the fourth quarter.

The New York-based bank took a 10-cent-per-share charge in the quarter, as it put aside $164 million for litigation and other matters. The bank said the reserve relates to restructuring, merger and integration expenses and intangible amortization.

Excluding the charge, earnings beat analysts' average expected a profit of 53 cents a share, according to Thomson Reuters I/B/E/S.

BNY Mellon shares closed up almost 2 percent at $32.14 on Monday. The shares have gained 15 percent since the start of the year.

(Reporting by Elinor Comlay; Editing by Derek Caney)

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