BNY Mellon SBL revenue hits two-year high 16 July 2020New York Reporter: Natalie Turner
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BNY Mellon has recorded its best quarter for securities lending revenue in nearly two years.
Last quarter saw the bank’s securities lending earnings jump 28 percent year-on-year to hit $51 million, up from $40 million.
This marks BNY Mellon’s highest quarterly earnings through its agency lending business since Q3 2018 when it chalked up $52 million.
Last quarter’s haul was also an 11 percent step up from Q1 when BNY Mellon earned $46 million.
BNY Mellon’s agency lending business, which comes under its investment services division, reported a market value of securities on-loan of $384 billion in Q2, up from $369 billion in Q2 2019, but down slightly from the $389 billion on loan in Q1.
The bank says its on-loan figures exclude securities for which BNY Mellon acts as agent on behalf of CIBC Mellon clients, which totalled $62 billion 30 June, $59 billion 31 March and $64 billion 30 June 2019.
Elsewhere, BNY Mellon’s clearance and collateral management business saw earnings increase 4 percent, compared to the equivalent period in the year prior.
Revenue for the past quarter hit $300 million, up from $276 million in Q1 2019 and $280 million in Q4 2019.
In its report, BNY Mellon says both increases primarily reflect growth in collateral management and clearance volumes and higher net interest revenue.
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