Even as his company reports a slight dip in revenue, BNY Mellon’s chief executive said on Friday (April 16) that he sees promising signs of recovery for the economy at large. “As we move from a period of resilience to a period of recovery and growth, there is a confluence of factors that are encouraging indicators for economic momentum,” CEO Todd Gibbons said in the company’s first-quarter earnings report.
He added that these indicators include “progress on vaccine deployment, extraordinary levels of consumer savings, and monetary stimulus and further government spending – all of which are likely to accelerate GDP growth.”
According to the report, Mellon saw net earnings of $858 million in the first quarter of the year, down 9 percent from 2020’s first quarter. Revenue slipped 5 percent to $3.92 billion, with net interest income dropping 20 percent since last year.
Gibbons said that Mellon’s Pershing, asset servicing and foreign exchange businesses enjoyed healthy client activity and market levels. The company also “gained traction in the data and analytics space, clearing and collateral management and treasury services, driven by ongoing investments in innovation and digitization,” he added.
Gibbons said that Mellon recorded a 1 percent increase in fee revenues, including what he called “strong” organic growth fueled by new business and overall higher economic activity.
As the country’s oldest bank, Mellon earlier this year also became the first global financial institution to announce a division geared toward furthering the expansion of bitcoin, crypto and other digital assets. “Growing client demand for digital assets, maturity of advanced solutions, and improving regulatory clarity present a tremendous opportunity for us to extend our current service offerings to this emerging field,” Roman Regelman, CEO of asset servicing and head of digital at BNY Mellon, said in the company’s announcement in February.
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