Mellon (MEL) hit second-quarter targets but complained that expenses grew faster than revenue in a tough interest rate environment.The Pittsburgh-based asset manager made $228 million, or 55 cents a share, from continuing operations in the quarter ended June 30, up from the year-ago $203 million, or 49 cents a share. The latest quarter included 2 cents a share in discrete tax benefits, up from a penny a share in the year-earlier quarter. Excluding those benefits, latest-quarter earnings beat the Thomson Financial analyst consensus estimate by a penny. Revenue rose 15% from a year ago to $1.29 billion, topping the $1.28 billion Wall Street view. "We are quite pleased with our top-line growth of 15% and particularly in Mellon Asset Management and Asset Servicing, with their combined revenue increasing by 27% and pre-tax income up by 43% due to improved margins," said CEO Robert Kelly. "Fee revenue grew in line with expenses. However, growth in total revenue was below growth in total expense due primarily to higher distribution expenses, the expense impact of growth initiatives as well as a lower level of net interest revenue in a challenging interest rate environment."