Excluding 22-cent tax benefit, third-quarter EPS comes in at 60 cents.
Operating EPS beats consensus estimate of 58 cents.
Revenue down 7% from second quarter but up 3% year over year.
Updated from 7:20 a.m. ET with early market action and comment from Jefferies analyst Ken Usdin. NEW YORK ( TheStreet) -- Bank of New York Mellon ( BK) on Wednesday followed the industry trend by reporting a sequential revenue decline, but the company's earnings rose significantly because of a tax benefit. The trust and custody bank reported third-quarter net income available to common shareholders of $967 million, or 82 cents a share, compared to $833 million, or 71 cents a share in the second quarter, and $720 million, or 61 cents a share, in the third quarter of 2012. The third-quarter results soundly beat the consensus estimate of 58 cents a share, among analysts polled by Thomson Reuters. Total revenue for the third quarter came in at $3.963 billion, down 7% from $4.009 billion the previous quarter, but up 3% from $2.879 billion a year earlier. Bank of New York's bottom-line earnings were boosted by a "benefit related to the U.S. Tax Court's partial reconsideration of a tax decision," which came to $261 million, or 22 cents a share. Without the tax benefit, third-quarter earnings-per-share would have come in at 60 cents -- still ahead of the consensus EPS estimate. Investment services fees totaled $1.738 billion in the third quarter, down only slightly from $1.742 billion in the second quarter, as small declines in asset servicing, clearing and treasury services were outweighed by a 10% sequential increase in issuer services fees to $322 million. Investment services fees were up 4% from $1.678 billion in the third quarter of 2012. Investment management and performance fees totaled $821 million in the third quarter, down 3% from $848 million the previous quarter, but up from $779 million a year earlier. The company's largest revenue decline, on a percentage basis, was in foreign exchange and other trading revenue, which totaled $160 million in the third quarter, down 12% from $207 million in the second quarter, and down 23% from $182 million in the third quarter of 2012. The sharp decline in trading revenue followed the industry trend reported by JPMorgan Chase ( JPM) and Citigroup ( C). Bank of America ( BAC) followed suit on Wednesday, reporting that trading account profits declined to $1.266 billion in the third quarter from $1.938 billion the previous quarter and $2.989 billion a year earlier. BAC's noninterest income declined to $11.264 million in the third quarter from $12.178 billion the previous quarter and $12.533 billion a year earlier. Please see TheStreet'searnings' coverage for plenty of additional detail on Bank of America's $2.5 billion third-quarter profit. Bank of New York Mellon's assets under management grew 7% sequentially and 13% year over year to $1.53 trillion. Assets under custody or administration grew 5% sequentially but declined 2% from a year earlier to $27.4 trillion.