Author: Jaiveer Shekhawat
(Reuters) – BNY beat fourth-quarter profit estimates on Wednesday as it earned higher investment services fees from its clients, sending its shares up 4.1% to $79.06 in premarket trading.
The bank’s fees, usually calculated as a percentage of assets under custody, have benefited from new client acquisitions, a market rally due to Federal Reserve interest rate cuts and the election victory of US President-elect Donald Trump, which boosted their value.
Economic resilience and expectations of further reductions in borrowing costs encouraged clients to continue their investment activities, which strengthened BNY’s bottom line.
Its total fee income rose 9% to $3.51 billion in the reporting quarter from a year earlier.
“As we go into the year, there’s more uncertainty,” CEO Robin Vince told reporters.
Net interest income – the difference between earnings on assets and expenses on liabilities – rose 8% to $1.19 billion in the fourth quarter. Analysts had expected about a 5% decline in the NII, according to estimates compiled by LSEG.
On an adjusted basis, the New York-based custodian bank reported earnings of $1.72 per share for the three months ended Dec. 31, comfortably beating analysts’ expectations of $1.56 per share, according to data compiled by LSEG.
BNY’s assets under custody and management were $52.1 trillion in the fourth quarter, up 9% from last year.
