BoNY Beats on Big Profit Boost

The New York-based trust bank saw profits from continuing operations jump more than 71% on fee and net interest growth.
By TSC Staff ,

Updated from 9:16 a.m. EDT

Bank of New York Mellon

(BK) - Get Report

beat first quarter expectations as the trust bank posted a big jump in revenue fueled by gains in fees and net interest revenue.

The New York-based trust bank reported income from continuing operations of $749 million, or 65 cents a share, vs. $437 million, or 61 cents a share, in the year-ago period. Excluding merger-related costs and intangible amortization, the bank posted a profit of 78 cents a share, compared to 65 cents a share a year ago.

The bank posted $3.76 billion in revenue, up 14% from the year-ago period. Analysts polled by Thomson Financial had expected a profit of 73 cents a share on revenue of $3.88 billion.

Bank of New York wrote down $74 million in securities during the quarter and $25 million in seed capital investments with a hedge fund manager. The company also took a $12 million charge related to capital support agreements. Those hits were partially offset by a $42 million gain earned through the sale of shares in

Visa

(V) - Get Report

in the electronic payment processor's initial public offering.

"Our businesses are performing well in a tough environment," CEO Robert Kelly said in a company statement. "... Market volumes and volatility, together with new business wins, continued to favor our asset servicing and clearing businesses, while lower market values impacted our asset management business. Our progress on the merger and integration continues to be excellent."

Share were flat in recent premarket action at $44.

Know What You Own:

BoNY operates in the investment management industry, and some of the other stocks in its field include State Street

(STT) - Get Report

, Citigroup

(C) - Get Report

and Northern Trust

(NTRS) - Get Report

. These stocks were recently trading at $68.69, -0.75%, $23.61, +0.73% and $72.94, +0.91% respectively. For more on the value of knowing what you own, visit TheStreet.com's

Investing A-to-Z

section.

This article was written by a staff member of TheStreet.com.

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