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Actionable news in BK: BANK OF NEW YORK MELLON CORPORATION,

BNY Mellon Third-Quarter Profit Tops Estimates as Costs Fall

Bank of New York Mellon, the world’s second-largest custody bank, reported a third-quarter profit that beat analysts’ estimates as the company cut expenses to offset the impact of lower interest rates.

Net income fell 23 percent to $820 million, or 74 cents a share, from $1.07 billion, or 93 cents, a year earlier, when profit was boosted by asset sales, the New York-based company said Tuesday in a statement. Earnings topped the 71 cent per-share estimate of 20 analysts surveyed by Bloomberg, while revenue fell short.

Led by Chief Executive Officer Gerald Hassell, BNY Mellon has worked to keep expenses from rising as persistently low interest rates make it difficult to boost profits. Trian Fund Management and Marcato Capital Management targeted the custody bank after it lagged behind rivals in key measures of profitability. Edward Garden, one of Trian’s co-founders, was named to the bank’s board in December.

“The activists are figuring eventually higher interest rates will increase earnings,” Marty...


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