Wealth management client assets rose at the end of the quarter; pre-tax income in the wealth and investment side of the US firm dropped.

The wealth services and market segment of BNY Mellon reported first-quarter pre-tax income of $496 million, dipping 10 per cent from a year ago. Total revenue was unchanged at $1.202 billion in the quarter, the US firm said this week. 

There was a minor provision ($2 million) for credit losses in Q1 2022, down from $29 million a year earlier. 

Assets under custody/administration in the wealth/market services arm stood at $33.7 trillion, rising 7 per cent. (The firm is one of the world's largest custody providers.)

As far as the wealth and investment management side is concerned, pre-tax income stood at $212 million falling by 24 per cent on a year earlier. Total revenue fell by 3 per cent to $964 million in the quarter.

Wealth management client assets were $305 billion at the end of March 2022, rising 4 per cent on a year before.

Across all of BNY Mellon, the US firm said net income applicable to common shareholders fell 19 per cent to $699 million, it said in a statement. 

“We continued to see healthy underlying momentum across most of our businesses. Reported revenue of $3.9 billion was flat year-over-year, or up 2 per cent excluding an approximately $90 million reduction resulting from government sanctions and our actions related to Russia,” Todd Gibbons, chief executive, said. 

Fee revenue dipped 3 per cent to $3.158 billion, it said.