BNY Mellon has reported a boost in its investment services business as asset servicing revenues helped propel the global custodian in the second quarter of the year.
Total investment services revenues increased 3% to $3.1 billion, of which asset servicing grew 5% to nearly $1.5 billion.
The bank stated the year-on-year increase for the asset servicing business reflected higher foreign exchange and other trading revenues. Total revenues also benefited from higher volumes from existing clients and a one-time fee, BNY said.
“For the second quarter, we delivered solid results, with all of our Investment Services businesses demonstrating resilient fee performance,” said Todd Gibbons, CEO, BNY Mellon.
“We are seeing momentum across most of our businesses as we continue to drive improved performance and capabilities across the company, and as we benefit from higher volumes and volatility versus a year ago.”
Assets under custody and administration also increased 5% to $37.3 trillion following higher client inflows, market values and net new business.
Securities lending revenues also saw the biggest increase of its business lines, up 28% to $51 million.
The boost in earnings comes after JP Morgan reported its securities services business achieved growth of 5% in the second quarter with revenues reaching $1.1 billion. Its AUC also jumped nearly 7.5% to $27.4 trillion, a new high for the US investment bank.
However, Citi reported a 9% decline in its securities services division with revenues of $619 million, where despite higher deposit volumes it was offset by lower spreads and interest rates.