The Bank of New York Mellon Corp. on Tuesday announced first-quarter net income of $661 million, or 57 cents per share, along with an assurance to investors that the company will control expenses and cut operating costs.
In the first quarter of 2013, the company reported a net loss of $266 million, or 23 cents per share. Excluding an $854 million charge related to the U.S. Tax Court’s disallowance of certain foreign tax credits, net income applicable to common shareholders totaled $588 million, or 50 cents per share, in the first quarter last year.
Gerald Hassell, chairman and CEO of BNY Mellon, said the company is committed to expense control and has a goal of producing positive operating leverage over time.
He said the company would be reducing its real estate footprint, especially in New York City where it is consolidating space and reducing its space by 700,000 square feet.
“We will incur some costs to reposition our staff, but expect gains to more than offset those costs when we sell our One Wall Street building and move to more efficient space,” said Ron Gruendl, a company spokesman.
Another area of costs savings for the company is consolidating its technology platforms by reducing Custody and Fund Accounting platforms.
“By the end of 2014, we expect to be down to two custody platforms from three, and down to just one by the end of 2015,” Mr. Gruendl said. “This reduces system maintenance, application development, and duplicative reporting costs. And very importantly, it simplifies our operations.”
The company, formed in the 2007 merger of Bank of New York and Pittsburgh-based Mellon Financial, has about 50,000 employees, including about 7,600 in the Pittsburgh region.
Tim Grant: email@example.com or 412-263-1591.