Bank of New York Mellon (NYSE: BK), announced stronger financial results as inflows continued in the first-quarter. The company, which was started by Alexander Hamilton, said that its revenue jumped by 11% while its earnings per share rose by 30%.
In all, the company said that its revenue soared to $4.4 billion in Q1 even as the banking sector went through major jitters. This growth was helped by higher interest rates, which boosted its net interest income by 62%.
Bank of New York’s total assets under management fell by 16% to $1,9 trillion while its assets under custody (AUC) jumped slightly to $46.6 trillion. By segments. Its securities business revenue rose by 19% while markets and wealth services rose by 22%. Investment and wealth management revenue rose by 14%. Robin Vince, the company’s CEO said:
“The strength of BNY Mellon’s highly liquid, lower credit-risk and well-capitalized balance sheet in combination with the resilience of our platforms is the bedrock that supports our client franchise. Time and again, BNY Mellon has been a port in the storm for our clients in times of market turmoil.”
Bank of New York, which has a market cap of over $35 billion is seen as a highly safe bank because of its strong balance sheet. Some analysts have even suggested that Goldman Sachs should acquire BNY because of its wealth management business. However, it is highly unlikely that regulators would accept such a deal.
Many big banks have benefited from the recent challenge in the regional bank industry. Results by Bank of America and JP Morgan showed that inflows jumped sharply in the first quarter. BNY stock price jumped by 61 basis points in the premarket.
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