Bank of New York ( BK), the big processing and custodial bank, reported a 10% gain in third-quarter earnings on Thursday.

The bank also disclosed that it has set aside $14 million in the quarter to cover the cost of potential settlement in a long-running federal investigation into a Russian money-laundering scheme.

In the quarter, the nation's oldest bank earned $389 million, or 51 cents a share, compared with $354 million, or 46 cents a share, in the year-ago period. Revenue rose 22% from a year ago to $2.1 billion.

Earnings at the bank topped the Thomson Financial consensus estimate by a penny.

The revenue gains at BONY were fueled by its securities servicing division, which includes its big Pershing stock-clearing operating. Fees from the division rose 18% to $806 million.

Net interest income, the profits coming from its lending operation, rose 15% to $492 million. Most of the bank's borrowers are commercial businesses, as it has a small retail banking presence.

Assets under custody at the bank increased by $1.4 trillion to $10.3 trillion. BONY is one of the nation's largest custodial banks, holding accounts for many large trusts.

The money set aside for the potential settlement stems from an investigation by federal prosecutors into a series of suspicious wire transfers to Russia and other European bank accounts. The investigation has focused on transfers made from an account controlled by a former bank executive Lucy Edwards.

In 2000, Edwards and her husband Peter Berlin pleaded guilty to taking part in the $7 billion scheme. The couple admitted to accepting $1.8 million in bribes from the Russian mob to set up the scheme.

The bank itself has never been charged with money laundering.

If you liked this article you might like

SEC Charges Ex-CIBC Broker

SEC Charges Ex-CIBC Broker

Durus Manager Gets Hard Time

Durus Manager Gets Hard Time

Shift for SAC's Cohen

Shift for SAC's Cohen

New Frontier Holder Selling

New Frontier Holder Selling

PIPE Deal Shines Up Sun

PIPE Deal Shines Up Sun