These factors include those identified in the cautionary statement on page 10 of the press release and those identified in our documents filed with the SEC that are available on our website bnymellon.com. Forward-looking statements in this call speak only as of today, July 20, 2010, and we will not update forward-looking statements. This morning’s press release provides the highlights of our results. We also have the quarterly earnings review document available on our website, which provides a quarterly review of the total company and business segments. We will be using the quarterly earnings review to discuss our results.Now, I would like to turn the call over to Bob. Bob. Bob Kelly Thanks, Andy and good morning everyone, and thanks for joining us. EPS in Q2 was $0.55 or $668 million. We booked good growth in security servicing fees and in asset management and wealth management, and posted our third consecutive quarter of positive long-term asset flows, that is equivalent to $12 billion for the quarter and $42 billion over the last nine months. Continuing on the new business fronts, we had new asset servicing wins of $419 billion in assets under custody. In broker dealer services, we had really nice success in winning new collateral management business, particularly in Europe. (inaudible) had some big wins that we will be converging in the third and fourth quarters, but with a lot of expenses in Q2 in advance for that. Depositary Receipts are continuing to win new business, and overall we are maintaining or growing our market shares. Net interest income was up slightly compared to last year and down about 6% sequentially. This decline was primarily due to our risk management strategy in both loan and bank placement portfolios, and we’re going to be looking closely at strategies to replace this revenue in the third and fourth quarters.
Credit improvement continues. It reflects what is clearly now a very clean balance sheet. Sequentially our provision was actually down 43%, and nonperforming assets were down 12%. We also went from having an unrealized pre-tax loss on the investment portfolio in Q1 to a gain of $292 million at June 30. We continued to generate capital, TCE, Tier 1, and Tier 1 common strengthened. Service levels remain excellent. In the latest Global Investor survey, in the global custody clients we ranked number one over our major peers in 16 categories.Global Custodian magazine released its securities lending survey in May. We were ranked number one overall in two categories, which is particularly pleasing to see since the last couple of years have been a pretty tough time for both the holders and the lenders of assets. We are also continuing to invest in the future growth of our businesses. On July 1, we successfully closed the GIS acquisition, and just a quick update on that. We are really pleased with how everything is going so far, which is a reflection of the terrific work being done by the integration teams across the company. As you may recall, our deal model relied very little on revenue synergies in the early years. Having said that, the first couple of weeks post closing have been pretty encouraging. We’re starting to see very nice revenue synergies. We are looking forward to seeing more of that to come. Cultures are mixing well. People are working very well together as one company already, and it is also a nice expansion into Europe, particularly related to hedge fund administration. So, bottom line is we are pretty optimistic about our ability to achieve the expense and revenue synergies that made this deal so attractive in the first place. On other fronts, we expect to close the BHF asset servicing deal in Germany next month. We recently received final regulatory approval to open our asset management joint venture based in Shanghai. This will enable us to start off with new products in China, as well as to our international clients, and we expect to be able to do that later this year.
We received approval to provide more asset management capabilities in Korea. We also announced the acquisition of a wealth management firm in (inaudible). Our first wealth management acquisition outside the United States. So, that is a lot of activity under way to build the future revenue pipeline, as well our global footprint.I would say the key takeaway before we hand it over to Todd would be solid earnings, very strong balance sheet. We are generating capital and we are investing for the future. So let us hand it over to Todd to go through the numbers in more detail. Todd Gibbons Thanks Bob and good morning. As I get into the numbers, my numbers will follow the quarterly earnings review beginning on page 3. Let me isolate a few key data points on a sequential basis. First of all, we earned $0.55 for the quarter on both a reported and operating basis. Fee revenue benefited from a 6% increase in security servicing fees, and a 39% increase in foreign exchange. Read the rest of this transcript for free on seekingalpha.com