The Bank of New York Mellon Corp. (BK), which is known to operate as a trustee for mortgage-backed securities, posted a third-quarter profit of $720 million, or 61 cents a share Wednesday. That compares to a profit of $651 million, or 53 cents a share, for the same quarter last year.
The company’s profit rose on higher year-over-year investment fees, which edged up 7%, and record levels of assets under its management with the total reaching $1.4 trillion.
“We are pleased to report solid earnings growth this quarter, led by the strength of investment management, which recorded its twelfth consecutive quarter of long-term inflows,” said Gerald Hassell, CEO of BNY Mellon. “New business trends for Asset Servicing were also strong, as we recorded the best quarter in new AUC wins since 2008, a testament to the breadth and quality of our capabilities.”
The value of assets under BNY Mellon’s administration and custody hit a record $27.9 trillion in Sept., up 8% from a year earlier and 3% from the previous quarter.
BNY Mellon made headlines this past year by agreeing with Bank of America to resolve legacy mortgage issues tied to Countrywide. The firm said it would accept an $8.5 billion settlement to resolve outstanding issues impacting investors in pools of loans that BNY Mellon oversees. The agreement has since been the subject of much controversy.