BNY Mellon reports YoY decline in securities lending revenue in Q3
16 October 2020 New York
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BNY Mellon posted a slight decline in its securities lending revenue for Q3, compared to the same period in 2019.
Revenue for the bank’s agency lending business, which sits under its investment services business, came in at $37 million in its third quarter, down 5 percent from $39 million reported in Q3 2019.
Securities lending revenue for Q3 was also down from Q2 which took in $51 million, which was a two-year record high for quarterly returns.
BNY Mellon’s agency lending business reported a market value of securities on-loan of $378 billion for Q3, up from $362 billion in Q3 2019, but down from $384 billion in the prior quarter.
These on-loan figures do not include securities for which BNY Mellon acts as agent on behalf of CIBC Mellon clients, which totalled $62 billion on 30 September, compared to $66 billion at 30 September 2019.
The bank attributed to decreased agency lending revenue to tighter spreads.
Elsewhere, BNY Mellon’s clearance and collateral management business saw earnings drop from $293 million in Q3 2019 to $277 million Q3 2020.
In its report, BNY Mellon says the year-over-year decrease primarily reflects lower investment income due to the Q4 2019 sale of an equity investment. The sequential decrease primarily reflects lower clearance volumes and net interest revenue.
Revenue for the bank’s agency lending business, which sits under its investment services business, came in at $37 million in its third quarter, down 5 percent from $39 million reported in Q3 2019.
Securities lending revenue for Q3 was also down from Q2 which took in $51 million, which was a two-year record high for quarterly returns.
BNY Mellon’s agency lending business reported a market value of securities on-loan of $378 billion for Q3, up from $362 billion in Q3 2019, but down from $384 billion in the prior quarter.
These on-loan figures do not include securities for which BNY Mellon acts as agent on behalf of CIBC Mellon clients, which totalled $62 billion on 30 September, compared to $66 billion at 30 September 2019.
The bank attributed to decreased agency lending revenue to tighter spreads.
Elsewhere, BNY Mellon’s clearance and collateral management business saw earnings drop from $293 million in Q3 2019 to $277 million Q3 2020.
In its report, BNY Mellon says the year-over-year decrease primarily reflects lower investment income due to the Q4 2019 sale of an equity investment. The sequential decrease primarily reflects lower clearance volumes and net interest revenue.
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