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