BNY Mellon Corp. said on Wednesday that second-quarter profit surged, beating Wall Street estimates, but deposits into long-term investment funds fell by nearly half amid a meltdown in the bond market.
Clients deposited $21 billion into long-term BNY Mellon investment funds during the second quarter, down from $40 billion in the first quarter. The bank also said lower bond values offset net new business.
The world's largest custody bank earned $833 million, or 71 cents a share, compared with $466 million, or 39 cents a share, a year earlier, when it took a litigation charge.
Excluding a $109 million after-tax gain from an equity investment, the bank said it had earned 62 cents a share. That beat the analysts' average estimate of 57 cents.
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