BNY sees Q4 profit slump

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Bank of New York Mellon on Friday said fourth-quarter profit, including a one-time charge, slumped 17 percent to $513 million, or 44 cents per share, compared with $622 million, or 53 cents per share, the previous year.

Excluding an after-tax loss related to a write-down on an equity investment, the New York-based trust, custody and asset management giant saw earnings edge up to $628 million, or 54 cents per share.

The $115 million after-tax loss was on its investment in ConvergEx, a New York broker that paid multimillion-dollar fines and admitted to government charges of overcharging clients through hidden fees.

BNY Mellon's revenue for the final three months of 2013 was flat at $3.6 billion.

For the full year, the company earned $2.05 billion, or $1.74 per share, down about 16 percent from $2.43 billion, or $2.03 per share, in 2012.

Excluding an unfavorable tax court ruling that disallowed certain foreign tax credits, BNY Mellon earned $2.64 billion, or $2.24 per share, in 2013.

Last year "marked a year of strong growth in our core investment services and investment management fees," chairman and CEO Gerald Hassell said in a statement. He said the company exceeded its cost-cutting goals and would remain focused on controlling expenses this year and beyond.

BNY Mellon has maintained a large presence in Pittsburgh since merging with the old Mellon Financial here in 2007.

Results were reported before the opening of the stock market. Shares fell $1.22, or 3.6 percent, on Friday to close at $32.70.

Patricia Sabatini: psabatini@post-gazette.com or 412-263-3066.


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