BNY Mellon SBL revenue hits two-year high
16 July 2020 New York
Image: bizvector/Shutterstock.com
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.
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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