Lending revenue hits seasonal low for BNY Mellon
21 October 2013 New York
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Securities lending revenue for BNY Mellon dropped $15 million from its last quarter, in the bank’s results for Q3 2013.
Asset servicing fees for the custody bank, which include securities lending revenue, were $49 million in Q3 2012. They dropped to $41 million in Q4 2012, and again to $39 million in Q1 2013. The second half of 2013 proved more fruitful for the custodian, with lending revenues of $50 million.
However, revenue dropped both year-on-year and sequentially for this quarter, to $35 million. Investment services fees in general totalled $1.7 billion, an increase of 4 percent year-on-year, but unchanged sequentially.
The year-on-year increase primarily reflects higher clearing services fees driven by higher mutual fund and asset-based fees and volumes, higher asset servicing revenue resulting from higher market values and higher issuer services revenue driven by higher depository receipts revenue.
Sequentially, higher issuer services revenue driven by seasonally higher depository receipts revenue was offset by a seasonal decrease in securities lending revenue, lower activity and lower expense reimbursements, said the bank.
Additionally, higher money market fee waivers decreased investment services revenue both year-on-year and sequentially.
Asset servicing fees for the custody bank, which include securities lending revenue, were $49 million in Q3 2012. They dropped to $41 million in Q4 2012, and again to $39 million in Q1 2013. The second half of 2013 proved more fruitful for the custodian, with lending revenues of $50 million.
However, revenue dropped both year-on-year and sequentially for this quarter, to $35 million. Investment services fees in general totalled $1.7 billion, an increase of 4 percent year-on-year, but unchanged sequentially.
The year-on-year increase primarily reflects higher clearing services fees driven by higher mutual fund and asset-based fees and volumes, higher asset servicing revenue resulting from higher market values and higher issuer services revenue driven by higher depository receipts revenue.
Sequentially, higher issuer services revenue driven by seasonally higher depository receipts revenue was offset by a seasonal decrease in securities lending revenue, lower activity and lower expense reimbursements, said the bank.
Additionally, higher money market fee waivers decreased investment services revenue both year-on-year and sequentially.
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