(Reuters) – BNY posted a 10% rise in second-quarter net profit on Friday, as higher investment service fees more than offset the world’s largest custodian bank’s lower interest income.
The bank’s assets under management (AUM) climbed 7% to $2.05 trillion from a year earlier, as more investors aimed to gain from a rally in the U.S. markets, while the assets under custody or administration (AUC/A) rose 6% to $49.5 trillion.
The benchmark S&P 500 index rose about 11% in the last three months on hopes of a soft landing for the economy.
BNY’s investment services fees for the second-quarter rose to $2.36 billion from $2.25 billion, while income from interest from its portfolio of securities, loans and deposits fell 6% to $1.03 billion.
The bank’s shares have risen about 18.1% this year, compared to a nearly 14% rise in the KBW Bank Index. According to analysts, the bank has a more diversified business model compared to rivals and is less exposed to seismic market shifts.
BNY’s net income for the second quarter rose to $1.14 billion, or $1.52 per share, from $1.04 billion, or $1.31 per share, a year earlier, while revenue rose 2% to $4.6 billion.
The 240-year-old bank changed its name to BNY from Bank of New York Mellon Corp in the reported quarter.
(Reporting by Pritam Biswas in Bengaluru; Editing by Shinjini Ganguli)
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