(Adds share price, analyst and executive comments)
April 22 Bank of New York Mellon Corp
reported a first-quarter profit on Tuesday as rising markets
drove up its assets under custody and administration.
The large New York trust bank reported net income of $661
million, or 57 cents per share, compared with a year-earlier
loss of $266 million, or 23 cents per share, on a charge from a
Analysts on average expected a profit of 53 cents per share,
according to Thomson Reuters I/B/E/S.
Assets under custody and/or administration were $27.9
trillion on March 31, the bank said, up 6 percent from a year
Shares of BNY Mellon were down 0.3 percent at $33.60 in
early trading. With its stock lagging that of rival State Street
Corp in recent years, BNY Mellon has been under pressure
to control costs.
Reviewing the quarter, analysts gave mixed reviews because
of factors like a decline in revenue from foreign exchange
trading, and low interest rates overall.
"While expense control is a positive, environmental revenue
headwinds seem relentless," Sandler O'Neill analyst Jeffrey
Harte wrote in a note to investors.
Speaking on a conference call with investors Tuesday morning,
executives reviewed plans to control technology spending, such
as by changing the ways the bank develops applications, and to
address real estate expenses. For instance, BNY Mellon is
selling its headquarters building at 1 Wall Street in New York,
and Chief Financial Officer Todd Gibbons said the sale could
take place by the end of September.
"We are taking aggressive action in virtually every expense
category," Chief Executive Officer Gerald Hassell said on the
(Reporting by Ross Kerber; Editing by Lisa Von Ahn)