Matthew L. Brown
Reporter- Boston Business Journal
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Bank of New York Mellon Corp.’s second quarter net income rose 81 percent to $833 million from $466 million a year ago thanks to an equity investment and improved fee revenue.
Overall revenue at the custodian bank was up 11 percent to $4.1 billion and total fee revenue jumped 14 percent to nearly $3.2 billion.
An equity investment put $184 million to the bottom line.
Assets under management rose 10 percent to $1.4 trillion by the end of the quarter. Assets under custody and administration were up 4 percent to $26.2 trillion.
BNY Mellon (NYSE: BK) has about 4,000 employees in four offices in Greater Boston. Its wealth management division, led by Somerville native Larry Hughes, said in May that it would increase its sales force by 50 percent over the next two years.
That will translate to about five new sales managers in Greater Boston, according to a bank spokesman.
Earlier this month, Moody’s Investors Service placed BNY Mellon’s Aa3 investment-grade rating on review for downgrade citing the profitability challenges that come with the aggressive pricing of its custody products and services.
Moody’s is also reviewing its long-term debt ratings for rival trust and custody banks Northern Trust Corp. and Boston-based State Street Corp.
Banks like BNY Mellon, State Street and Northern Trust hold and protect the assets of corporations and financial firms. Often they offer other related services, like accounting or tax services, and make most of their money on fees.
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