BNY Mellon Profit Falls as Record-Low Rates Cut Returns

by Wall Street Job Report on April 18, 2012

Bank of New York Mellon Corp (BK)., the world’s largest custody bank, said first-quarter earnings fell 1 percent as revenue lost from the sale of a unit and lower foreign-exchange trading offset gains from rising asset levels.

Net income fell to $619 million, or 52 cents a share, from $625 million or 50 cents, a year earlier, BNY Mellon said today in a statement. Analysts (BK) (BK) had expected the New York-based company to report a profit of 51 cents a share, according to the average of 15 estimates in a Bloomberg survey.

Shares fell 2.1 percent to $23.29 at 9:52 am in New York trading.

“They put up decent numbers in a challenging environment,” Gerard Cassidy, an analyst with RBC Capital Markets in Portland, Maine, said in a telephone interview. “When interest rates finally go up, this bank and its competitors should see some relief.”