Financial Results

Pre-Tax Income Rebounds At BNY Mellon's Wealth, Investments Arm

Editorial Staff 17 October 2023

Pre-Tax Income Rebounds At BNY Mellon's Wealth, Investments Arm

The New York-headquartered group reported a broadly stronger set of financial results for the third quarter of this year.

BNY Mellon said that its wealth and investment management division logged pre-tax income of $164 million in the three months to end-September, recovering from a comparable loss of $497 million a year ago. 

Total fee revenue in this side of the US-listed firm’s business was $788 million, down from $808 million a year ago. Noninterest costs fell to $672 million from £1.356 billion. 

Wealth management revenues dropped to $827 million from $862 million, it said in a statement today. 

Total assets under management in this business area stood at $1.821 trillion, rising from $1.772 trillion in September 2022 a year before. Wealth management client assets stood at $292 billion, up from $256 billion. 

Explaining the wealth and investment management segment’s revenue decline, BNY Mellon said it was mainly caused by the effect of divesting from the Alcentra business. Some of the drop was outweighed by higher performance fees and rising markets. (In November 2022, BNY Mellon completed its sale of the Alcentra asset management group to Franklin Templeton.)

Within the wealth and markets services business, total revenues stood at $1.445 billion, up from $1.367 billion a year earlier. Within that figure, Pershing’s revenues rose to $699 million from $658 million a year before.

Across the whole group, BNY Mellon said its adjusted net income, applicable to common shareholders, rose to $992 million from $983 million a year before. The group’s Common Equity Tier 1 ratio stood at 11.4 per cent. 

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