By Dean Seal

Bank of New York Mellon logged a higher profit in the fourth quarter as both fee and interest revenue climbed and costs came down from a year ago.

The bank posted a profit of $1.16 billion, or $1.54 a share, compared with $206 million, or 21 cents a share, in the same quarter a year ago.

Stripping out one-time items, adjusted earnings were $1.72 a share. Analysts polled by FactSet had been expecting $1.54 a share.

Revenue rose 11% from a year ago to $4.85 billion, topping analyst projections for $4.66 billion, according to FactSet.

Fee revenue was driven up 9% to $3.51 billion from higher market values and client activity, along with net new business and higher foreign exchange revenue.

Quarterly net interest revenue got an 8% boost to $1.19 billion on higher yields from the bank's investment securities portfolio and growth in its balance sheet, which offset negative impacts from changes in its deposit mix.

The bottom line was lifted by both higher revenue and a 16% drop in noninterest costs, primarily from adjustments for a special assessment by the Federal Deposit Insurance Corporation, savings from higher efficiency and lower severance costs. Those partially offset some higher revenue-related expenses, employee raises and investments.

Assets under management rose 3% year-over-year at $2.03 trillion.

BNY is among the first banks to report this earnings season. Its shares rose 1.8% to $77.32 in premarket trading.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

January 15, 2025 06:50 ET (11:50 GMT)

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