“Both increases were primarily driven by higher market values,” BNY Mellon said, adding that the sequential increase also reflects net new business. 

Long-term AuM inflows totaled $21 billion, driven by the continued strong flows of liability-driven investments. Short-term outflows totaled $7 billion for the first quarter of 2014.

Assets under custody and/or administration, meanwhile, totaled $27.9 trillion at March 31, 2014, an increase of 6 per cent compared with the prior year and 1 per cent sequentially - primarily driven by higher market values.

Investment management and performance fees were $843 million at end-March 2014, up 3 per cent year-over-year but down 7 per cent sequentially.

The year-over-year increase primarily reflects higher equity market values, net new business and higher performance fees, partially offset by higher money market fee waivers.

It attributed the sequential decrease to seasonally lower performance fees and fewer days in the first quarter of 2014.

For the group as a whole, BNY Mellon reported first quarter net income applicable to common shareholders of $661 million, or $0.57 per diluted common share.

This compares to net income of $513 million in the final quarter of 2013 and a net loss applicable to common shareholders of $266 million a year ago.

The provision for credit losses was a credit of $18 million in the first quarter of 2014, driven by the continued improvement in the credit quality of the loan portfolio, down from $24 million a year ago and $6 million in the previous quarter.

“The management team is focused on actively realigning the business model for the new regulatory environment, controlling expenses and generating strong returns on tangible common equity,” said Gerald Hassell, chairman and chief executive officer of BNY Mellon.