BNY Mellon’s asset serving revenues topped the $1bn mark in this year’s first quarter.

Fees from the division totalled $1.04bn between January and March, up 1% compared to the last quarter of 2015 but flat year-on-year terms.

The bank said new business and higher securities lending revenue were offset by lower market values and the unfavourable impact of a stronger US dollar.

Earnings from securities lending alone totalled $50m between January and March, up from $46m in the three months to December and 16% higher than last year’s first quarter.

The firm said that the stronger performance of the stock loan business was driven by ‘wider spreads’, i.e the difference between income earned on the collateral less the rebate rate promised.

Assets under custody stood at $1.2trn at the end of March with $40bn worth of new business wins occurring over the three month period.

Investment management and performance fees declined by 6%.

Overall, revenue for the New York custodian bank came in at $3.7bn in the first three months 2016, down 2% from last year’s Q1 and flat on the October-December quarter.

The bank's net income, or profit, was $804m compared with $766m in the first quarter of 2015.

“In challenging market conditions, we generated solid earnings growth as we executed on our strategic priorities,"  said Gerald L. Hassell, chairman and chief executive officer.