BNY Mellon 4Q results reveal dip in securities lending revenue
17 January 2013 New York
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While improvement in market values meant good news for BNY Mellon’s investment management, asset servicing, clearing and treasury services businesses, investment services fared slightly worse in the bank’s Q4 2012 results.
Investment services fees totalled $1.6 billion, an increase of 1 percent year-over-year, but a decrease of 5 percent sequentially. The year-over-year increase was primarily driven by higher asset servicing revenue as a result of net new business, improved market values and higher collateral management revenue, as well as higher volumes in clearing and treasury services.
This increase was partially offset by the impact of the sale of the shareowner services business in Q4 2011 as well as lower depository receipts and corporate trust revenue.
Sequentially, the decrease primarily resulted from a $107 million decrease in depository receipts revenue largely reflecting seasonality and lower securities lending revenue, said the bank. This was partially offset by higher asset servicing revenue that was driven by higher collateral management revenue, and higher clearing and treasury services revenue.
Investment services fees totalled $1.6 billion, an increase of 1 percent year-over-year, but a decrease of 5 percent sequentially. The year-over-year increase was primarily driven by higher asset servicing revenue as a result of net new business, improved market values and higher collateral management revenue, as well as higher volumes in clearing and treasury services.
This increase was partially offset by the impact of the sale of the shareowner services business in Q4 2011 as well as lower depository receipts and corporate trust revenue.
Sequentially, the decrease primarily resulted from a $107 million decrease in depository receipts revenue largely reflecting seasonality and lower securities lending revenue, said the bank. This was partially offset by higher asset servicing revenue that was driven by higher collateral management revenue, and higher clearing and treasury services revenue.
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