Sec lending boosts BNY Mellon in Q4

Sec lending boosts BNY Mellon in Q4

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Solid securities lending revenue helped BNY Mellon offset a weaker clearing business in the bank’s fourth financial quarter.

The custody giant’s sec lending division raked in $46m between October and December last year.

That beat the $38m achieved in the previous three months and topped the $37m total for Q4 2014.

Total asset servicing fees across the board, including securities lending, were $1bn, a rise of 1% year-on-year.

The overall uptick, according to BNY, reflects “growth in the Global Collateral Services and Broker Dealer Services businesses the bank said, noting the contribution of the sec lending desk.

Fees from clearing services came in at $339m, a decline of 2% both year-over-year, with industry consolidation cited as the cause.

Meanwhile financing-related fees, including the firm’s broker-dealer tri-party repo services, were $51m in Q4 2015 compared with $43m a year earlier.

Investment management fees were slightly lower at $864m, a decrease of 2% year-over-year, offset by net outflows and tough market conditions.

Overall, for the business as a whole, BNY Mellon reported a profit of $693m in Q4, up from $233m a year ago.

“Even with geopolitical instability, emerging market weakness, higher regulatory compliance requirements and low interest rates, we executed on our strategic priorities and focused on what was within our control,” said Gerald L Hassell, chairman and chief executive officer.

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