BNY profit boosted by higher interest, fees

(Reuters) -BNY reported a 21% jump in third-quarter profit on Thursday, as it earned higher interest and fees, while soaring equity markets boosted the value of its client assets. U.S. stock markets hit record levels in the latest quarter as AI exuberance and hopes of interest rate cuts prompted investors to look past labor market weakness and inflation worries. BNY's assets under custody and administration rose 11% in the quarter ended Sept. 30 to $57.8 trillion from a year earlier. The Wall Street bank said the rise reflected higher market values and client inflows. Its total revenue jumped 9% to a record $5.08 billion in the quarter. Net interest income (NII) – the spread between earnings from assets and costs on liabilities – also rose 18%, smashing analysts expectations of 12.6% growth, according to estimates compiled by LSEG. The quarter saw BNY's NII grow at the highest pace since the second quarter of 2023, underscoring borrower resilience observed across the biggest U.S. banks' results this week. Profit applicable to BNY shareholders came in at $1.34 billion, or $1.88 per share, compared with $1.11 billion, or $1.50 per share, a year earlier. Assets under management remained flat over the same period as higher market values were offset by net outflows. (Reporting by Ateev Bhandari in Bengaluru; Editing by Anil D'Silva)

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