The US-based firm reported a broadly solid set of financial results for its wealth management arm in Q2, although assets under management across the group were hit by the slide in global markets.

Wealth management pre-tax income at BNY Mellon stood at $296 million in the three months to June 30, down a touch from $299 million a year earlier, the US financial group has reported. 

Market and wealth services, including the Pershing business that provides custody and other offerings for wealth managers and banks, stood at $1.314 billion in Q2 2022, rising from $1.192 billion a year earlier. Investment services fees at Pershing rose to $479 million from $439 million over the year, a rise of 9 per cent, it said. “The year-over-year increase primarily reflects lower money market fee waivers and higher transaction activity, partially offset by the impact of prior year lost business. The sequential increase primarily reflects lower money market fee waivers, partially offset by lower equity markets and lower transaction activity,” BNY Mellon said.

Across the whole BNY Mellon business, net income, attributable to shareholders, fell 16 per cent year-on-year to $835 million. Noninterest costs rose 12 per cent to $3.112 billion; total revenue rose 7 per cent to $4.254 billion. Pre-tax income fell 14 per cent to $1.095 billion.

“Our results reflect the benefit of higher interest rates, the strength of our diversified platform, and our exceptional client franchise. We continued to see good sales momentum across most of our businesses, and healthy client volumes tempered the impact of lower market values,” Robin Vince, president and CEO-elect, said. (Todd Gibbons, CEO, is retiring at the end of August.)

Assets under management were $1.9 trillion at end-June, falling by 17 per cent, primarily reflecting lower market values and the unfavorable impact of a stronger US dollar, partially offset by net inflows.