Oct 11 Reuters BNY beat thirdquarter profit estimates on Friday, boosted by higher investment services fees as assets under its custody and administration exceeded the 50 trillion mark for the first time.
The bank39;s fees, typically calculated as a percentage of the assets under custody, benefited from a market rally that boosted their value as well as acquisition of new clients.
Economic resilience and expectations of an interest rate cut cycle, which began in the final month of the quarter, prompted clients to keep up their investment activities and bolstered BNY39;s bottom line.
We recognize that there have been a lot of shifts in the macroeconomic outlook since the beginning of the year, CEO Robin Vince said in a call with reporters.
We see the market backdrop as pretty constructive but there are a lot of risks and uncertainties and so for us its always the business of preparing for what exists, helping our customers to be able to navigate.
The world39;s largest custodian bank39;s shares were last up 1.4 in premarket trading.
Net interest income NII the spread between earnings from assets and costs on liabilities also jumped 3 as yields from BNY39;s bond investments offset the impact of higher deposit costs. Analysts had expected a 1.3 drop in NII, according to estimates compiled by LSEG.
The bank reported adjusted profit of 1.52 per share, beating Wall Street expectations of 1.42.
Assets under custody and administration were 52.1 trillion, 14 higher than…