BNY Mellon Exceeds Profit Expectations due to Higher Interest Rates


Summary: Bank of New York Mellon Corp (BK.N) surpassed Wall Street predictions for third-quarter profit, thanks to increased interest rates set by the U.S. Federal Reserve, which boosted the bank’s loan income.

BNY Mellon reported a net interest revenue of $1.02 billion for the quarter, representing a nearly 10% increase compared to the previous year. While higher interest rates have been beneficial for banks, concerns around loan defaults have prompted lenders to maintain reserves. BNY Mellon set aside $3 million for credit losses this quarter, as opposed to a $30 million benefit reported the previous year. Despite this, the bank’s adjusted profit per share for the third quarter was $1.27, surpassing analyst expectations of $1.15 per share. Furthermore, BNY Mellon’s total revenue increased by 2% to $4.4 billion, and assets under custody or administration (AUC/A) rose by 8.3% to $45.7 trillion.

Tags: BNY Mellon, profit, interest rates, U.S. Federal Reserve, lenders, loan defaults