Bank of New York Mellon Corp. (BK) grew its first-quarter profit to $625 million, or 50 cents a share, as the company reaped benefits of having assets under its custody grow 14% over last year. Earnings for the quarter compare to income of $559 million, or 46 cents a share, during the first quarter of 2010. The company’s revenue rose 9% year-over-year, hitting nearly $3.65 billion in the first quarter compared to about $3.34 billion a year ago. Even still, the company’s stock fell Tuesday morning, with the bank’s profit falling below the average analyst estimate of earnings per share in the 57-cent range, according to Yahoo! Finance. By the end of the first quarter, the largest trust bank in the world had $25.5 trillion in assets under its custody and administration up 14% from a year earlier. Assets under management — excluding securities lending assets — hit $1.2 trillion, an 11% increase over last year. “A fundamental strength of our business model is the ability to rapidly grow capital and generate a high return on it,” said Robert Kelly, the bank’s chairman and CEO. “Specifically, in the first quarter of 2011, our capital grew at an annualized rate of 28% and we generated a 21% return on it. Over time this provides us with superior flexibility to invest in our businesses and return capital to our shareholders.” Write to Kerri Panchuk.
Bank of New York Mellon posts 1Q profit of $625 million
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