Bank of New York Mellon, the world's largest custodian bank, today reported a better-than-expected quarterly profit, helped by higher fee revenue and lower income tax provision.
Provision for income tax fell 14% to $286m in the second quarter.
Fee revenue rose 3% to $3.21 billion, as the company benefited from higher interest rates and equity markets.
Banks and asset managers in the USs have benefited from the tax overhaul that is helping them reduce the amount of reserve for income tax.
The bank said net income applicable to common shareholders rose 14% to $1.06 billion, or $1.03 per share, in the quarter ended June 30.
Analysts on average had expected earnings of $1.02 per share, according to Thomson Reuters.
Total second quarter revenue rose 4.6% to $4.14 billion.
Non-interest expenses rose 3.4% to $2.75 billion because of a weak dollar.
The bank said that assets under custody and administration rose to $33.6 trillion from $33.5 trillion in the first quarter.
