(Reuters) – BNY reported a 27% jump in its fourth-quarter profit on Wednesday as it earned higher investment services fees from its clients.
The bank’s fees, typically calculated as a percentage of assets under custody, benefited from the acquisition of new clients, a market rally due to the Federal Reserve’s interest-rate cuts and U.S. President-elect Donald Trump’s election win, which boosted their value.
Economic resilience and expectations of further reductions in borrowing costs prompted clients to keep up their investment activities, bolstering BNY’s bottom line.
Its total fee revenue grew 9% to $3.51 billion from a year earlier in the reported quarter.
Net interest income – the spread between earnings from assets and expenditure from liabilities – rose 8% to $1.19 billion. Analysts had expected about a 5% drop in NII, according to estimates compiled by LSEG.
Profit applicable to BNY shareholders was $1.27 billion, or $1.72 per share, for the three months ended Dec. 31, compared with $1 billion, or $1.29 per share a year earlier.
BNY’s assets under custody and administration were $52.1 trillion in the fourth quarter, 9% higher than last year.