BNY fourth-quarter profit rises on boost from higher fee income

(Reuters) – BNY (BK) reported a 27% jump in its fourth-quarter profit on Wednesday because it earned higher investment services fees from its clients.

The investment bank’s stock price rose over 1% before the bell on Wednesday.

The bank’s fees, typically calculated as a percentage of assets under custody, benefited from the acquisition of latest clients, a market rally as a consequence of 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 maintain up their investment activities, bolstering BNY’s bottom line.

Its total fee revenue grew 9% to $3.51 billion from a yr earlier within 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 a couple of 5% drop in NII, in line with 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 yr earlier.

BNY’s assets under custody and administration were $52.1 trillion within the fourth quarter, 9% higher than last yr.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Pooja Desai)

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