Bank of New York Mellon, one of the world's largest custody banks, said first-quarter profit rose as higher custody fee income offset a decline in foreign exchange and net interest revenue.
Net income rose 12 percent to $625 million, or 50 cents a share, from $559 million, or 46 cents a share, a year ago.
Excluding special items, earnings from continuing operations were $699 million, or 55 cents a share, up from $601 million, or 49 cents a share.
Analysts on average expected earnings from operations of 57 cents a share, according to Thomson Reuters I/B/E/S.
Net revenue rose 9 percent to $3.65 billion. Total fee revenue rose to $2.83 billion from $2.52 billion.
BNY Mellon's total assets under custody and administration rose 14 percent to $25.5 trillion, reflecting higher market values and net new business.
"Over the past year, unlike many, we continued to grow revenue and earnings despite the challenging environment, and did so with a clean balance sheet," said Robert Kelly, the bank's chief executive officer. "Sequentially, revenue was lower due to seasonality, as were expenses, despite higher litigation costs."
Earnings fell from the 2010 fourth quarter, when the company earned $690 million, or 55 cents a share.
Assets under management in the latest quarter rose 11 percent from a year earlier to $1.23 trillion.
Net interest revenue fell to $698 million from $730 million; foreign exchange revenue fell 1 percent to $173 million.
Other trading revenue fell by $62 million, to $25 million. The bank said the decrease was driven by lower fixed income and derivatives trading revenue.
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