Bank of New York Mellon reported $1.636 trillion in combined assets under management for its BNY Mellon Investment Management and wealth management businesses as of June 30, up 1% from three months earlier and 15% higher than a year earlier, the company reported in its earnings statement Friday.
The quarterly increase in AUM resulted from higher market values while the year-over-year rise was due to net new business, the statement said.
Long-term net outflows totaled $13 billion in the second quarter, driven by liability-driven investments. Short-term net outflows totaled $18 billion. For the previous quarter, long-term net inflows totaled $21 billion and short-term net outflows, $7 billion; in the year-earlier quarter, long-term net inflows also totaled $21 billion and short-term net outflows, $1 billion.
Investment management and performance fees during the second quarter of 2014 were $883 million, a 5% increase from the previous quarter and 4% rise from the year-earlier period. Both increases reflect higher equity market values and the impact of a weaker U.S. dollar. The year-over-year increase also reflects net new business, partially offset by higher money market fee waivers and lower performance fees.
Parent Bank of New York Mellon reported $28.5 trillion in assets under custody and administration as of June 30, up 2% from March 31 and 9% higher than June 30, 2013.
Net income for the parent company came to $554 million for the latest quarter, compared with $661 million in net income in the first quarter and $831 million in the year-earlier quarter.
Parent company revenue, meanwhile, came to $3.75 billion for the second quarter, up 3% from the previous quarter but down 7% from the same period a year ago.
The bank also said it was exploring a sale of its corporate trust business. However, BNY Mellon executives said Friday in a conference call with investors and analysts that the bank concluded after a review that it will retain its corporate trust unit.
“We would only sell it if, in fact, someone would pay us the premium of what we believe this business is worth,” CEO Gerald Hassell said on the call. “It’s a challenging environment for someone to acquire something of this size and complexity and so we decided that we couldn’t get the kind of premium that we thought this business was worth, and we think it’s much more valuable in our hands.”
Bloomberg contributed to this story.