(Reuters) -BNY reported a 21% jump in third-quarter profit on Thursday, as the world's largest custodian bank earned higher interest and fees on its services, while soaring equity markets boosted the value
of its client assets.
The bank's assets under custody and administration rose 11% to $57.8 trillion in the quarter ended Sept. 30, reflecting higher market value and client inflows.
Its total revenue jumped 9% to a record $5.08 billion in the quarter.
Net interest income (NII) - the spread between earnings from assets and costs on liabilities - also rose 18%, smashing analysts' expectations of 12.6% growth, according to estimates compiled by LSEG.
BNY said the jump in NII was from reinvesting in maturing securities at higher yields as well as balance sheet growth.
The quarter saw BNY's NII grow at the highest pace since the second quarter of 2023.
Profit applicable to BNY shareholders came in at $1.34 billion, or $1.88 per share, compared with $1.11 billion, or $1.50 per share, a year earlier.
Assets under management remained flat over the same period as higher market values were offset by net outflows.
Revenue at the bank's asset servicing business, which handles the safekeeping and settlement of trades, increased 12% from a year ago.
Total fee revenue rose 7% to $3.64 billion over the period.
(Reporting by Ateev Bhandari in Bengaluru; Editing by Anil D'Silva)
