The different parts of the US group's business lines logged contrasting results in some respects, reflecting forces such as falling asset values, higher volatility in markets, and rising interest rates from the US Federal Reserve.

Pre-tax income at the market and wealth services segment of BNY Mellon rose 21 per cent year-on-year to $631 million in the third quarter of 2022, the group said yesterday.

Total revenues rose by 17 per cent at this business segment to $1.367 billion. Within that figure, total fee and other revenue rose 11 per cent to $989 million; net interest revenue – boosted by rising US interest rates – surged by 34 per cent to $378 million. 

Within the Pershing business that works with many wealth managers, BNY Mellon said that the year-on-year rise in results reflected lower money market fee waivers and higher client activity, partially offset by the impact of prior year lost business. 

Within the wealth and investment management segments, total revenue stood at $862 million, falling 16 per cent on a year before. Investment management fees fell 12 per cent on the year to stand at $788 million in Q3, 2022. Performance fees slumped by 52 per cent to $10 million. Noninterest costs rose 96 per cent to $1.356 billion. On a pre-tax basis, there was a loss of $497 million, falling 243 per cent on a year earlier.

The firm said noninterest expense increased primarily because of  goodwill impairment in the investment management reporting unit. Excluding notable items, noninterest costs fell 2 per cent on a year ago, and from the second quarter of 2022 and that was caused by the positive impact of a stronger US dollar.