- Investment Services – This segment provides custody and related services, broker-dealer services, collateral services, and clearing services, among others.
- Investment Management – This segment provides investment management services to institutional and retail clients, including wealth and estate planning and private banking solutions.
Earnings for the Investment Services business
In 4Q16, Bank of New York Mellon’s (BK) revenues from its Investment Services business rose 5% to $2.7 billion. The Investment Services segment’s fees were 4% higher year-over-year at $1.7 billion.
Asset servicing fees rose 3% to ~$1.0 billion during the quarter, backed by higher money market fees. However, this movement was offset by a stronger US dollar and the downsizing of BK’s UK business.
Net interest revenues increased to $713 million due to higher short-term rates. Non-interest expenses fell to $1.8 billion, reflecting lower legal expenses.
Earnings for the Investment Management business
Bank of New York Mellon’s Investment Management (JPM) (BAC) segment generated revenues of $960 million during 4Q16, which is 4% lower than in 4Q15. Assets under management (C) increased 1% year-over-year to ~$1.7 trillion. Long-term inflows totaled $11 billion in 4Q16 while short-term outflows totaled $1 billion.
Investment management fees of $801 million were flat year-over-year and reflected higher money market fees and market value. However, these fees were offset by the unfavorable impact of a stronger US dollar.