The Bank of New York Mellon on Tuesday said its second-quarter profit more than tripled, boosted by the acquisition of an investment management firm and a steep drop in poorly performing loans.
For the three months ended June 30, the trust bank reported net income applicable to common shareholders of $658 million, or 54 cents per share, compared with $176 million, or 15 cents per share, in the year-ago quarter.
The per-share results reflect a 3 percent increase in the number of outstanding shares.
Analysts polled by Thomson Reuters expected, on average, profit of 54 cents per share.
Total fee revenue rose to $2.56 billion, from $2.51 billion last year.
Net interest revenue, or earnings from deposits and loans, rose to $722 million, from $700 million in the 2009 second quarter.
Assets under management rose 13 percent to $1.05 trillion from $926 billion. The increase mainly reflects the acquisition of Insight Investment Management in the 2009 fourth quarter.
Assets under custody and administration gained 6 percent to $21.8 trillion, reflecting higher market values and new business.
Bank of New York Mellon decreased its provision for loan losses — money set aside to cover souring loans — by more than a third to $20 million, from $61 million a year ago.
Nonperforming assets, mainly loans considered past due and in danger of default, totaled $406 million, up 7 percent from $378 million a year ago, but down 12 percent from $459 million in the first quarter. The decrease from the March quarter mainly resulted from repayments by financial institutions, partially offset by the addition of some residential mortgages.
Net charge-offs, or loans written off as uncollectable, totaled $13 million, less than a quarter of the $54 million last year.
Bank of New York Mellon added 900 employees in the past year, including 400 during the second quarter, to reach 42,700.
Shares of Bank of New York Mellon closed Monday at $25.64.
© Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.