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UPDATE 1-BNY Mellon profit falls 37 percent on litigation charge

by on July 18, 2012 11:08 am GMT
 

Wed Jul 18, 2012 7:08am EDT


(Reuters) – Bank of New York Mellon Corp said
on Wednesday that second-quarter net income had fallen 37
percent on lower foreign exchange revenue and after it paid $212
million to settle an investor lawsuit.

The world’s largest custody bank reported net income of $466
million, or 39 cents a share, compared with $735 million, or 59
cents a share, a year earlier.

As announced earlier this month, the results included an
after-tax charge of $212 million to settle an investor lawsuit
accusing the bank of imprudently investing their cash in a risky
debt vehicle that collapsed in 2008.

Quarterly revenue fell to $3.62 billion from $3.85 billion.

Assets under custody and administration amounted to $27.1
trillion, an increase of 3 percent from a year earlier.

Investment management and performance fees rose 2 percent to
$797 million.

Foreign exchange revenue fell 15 percent to $157 million.
BNY Mellon faces several lawsuits that accuse the bank of
overcharging on forex trades, but denies any wrongdoing.