Bank of New York Mellon Corp. reported earnings that beat estimates after it scored a boost from rising interest rates like many of its Wall Street rivals.
The bank said adjusted earnings per share rose 20% to $1.38 for the quarter through June, topping the average $1.22 forecast by analysts tracked by Bloomberg. Net interest income jumped by a third from a year earlier to $1.1 billion as the company also reiterated guidance that it expects full-year net interest income to increase 20% from a year ago.
Robin Vince, the bank’s chief executive officer, said during a conference call that he’s “positive on the economy on the medium to long-term basis in the US.” He also noted the resilience of the consumer.
BNY Mellon — which says it’s the largest custodian bank in the world — said assets under custody or administration rose 9% to $46.9 trillion at the end of the period. That reflected higher market values, client inflows and net new business, according to a statement Tuesday.
“In the second quarter we saw particular strength in clearance and collateral management and depositary receipts,” Vince said in the statement.
Shares of the bank rose 1.2% to $44.08 at 10:34 am in New York on Tuesday.
Read more: BNY Mellon CEO Says Moving ‘Exceptionally Slowly’ on Crypto
State Street Corp. last week reported net interest income and revenue that missed estimates, resulting in a trio of analyst downgrades and a drop in shares.
Last October, BNY Mellon launched a digital asset custody platform that allows some clients to hold and transfer Bitcoin and Ether. With the recent waves of Bitcoin exchange-traded fund applications, the bank sees itself playing a role safekeeping the cash, Vince said. BNY Mellon is listed as the cash custodian on BlackRock’s Bitcoin exchange-traded fund filing. The world’s biggest asset manager surprised markets with its application for a spot-Bitcoin ETF in June.
As for BNY Mellon’s crypto custody service, “that’s never been the main focus for us in our digital assets journey,” Vince added. The firm’s focus is rather on blockchain technology and tokenization, he said.
(Updates with stock move, further details from third paragraph.)
