Bank of New York Mellon reported a 72 per cent drop in quarterly profit due to disruptions in the capital and credit markets and the effects of a one-off gain in the comparative quarter in 2006.

But results topped forecasts as fees from asset management and institutional clients grew at a double-digit pace.

Net income in the second quarter since the July merger of BoNY and Mellon Financial totalled $520 million. Total profit for the separate companies was $1.86 billion a year earlier, but this sum included a $1.38 billion gain at the former BoNY from the swap of its branch network for JPMorgan Chase corporate trust unit.

Revenue totalled $3.8 billion, as fees grew 25 per cent from securities servicing and 14 per cent in asset management.

The bank declared a write-down of $118 million to cover 47 per cent of the value of its collateralised debt obligations related to mortgages.

BoNY took a further charge of $180 million to move Three Rivers Funding onto its balance sheet, citing widening credit spreads. The company said it expects to recoup the charge for the conduit over the next several years.

BoNY's $18.3 billion purchase of Pittsburgh-based Mellon created the world's largest provider of back-office and other custody services for institutional investors, now handling $23.1 trillion of assets. It also created a large asset manager, now overseeing $1.1 trillion.

Chief executive Robert Kelly said the bank is looking for asset management acquisitions. He also plans to boost marketing spending 5 per cent to increase the name recognition of the firm among many prospective clients.

A US recession could slow down revenue growth a bit, said Mr Kelly, but that he believed the company was better positioned than its peers, particularly due to its operations overseas.