Bank of New York Mellon, which this morning reported profits slumped 33 percent in the second quarter, will hang on to its corporate trust business, which had been under review for a possible sale.
“We concluded we can create more shareholder value by retaining it,” Chairman and CEO Gerald Hassell told analysts in a conference call.
“I have always liked this business,” he said. “We are confident of its future growth potential.”
The company earned $554 million, or 48 cents per share, in the second quarter, down from $831 million, or 71 cents, a year earlier.
Excluding special items in both years, the New York-based trust, custody and asset management giant earned $715 million, or 62 cents per share, vs. $701 million, or 60 cents, in 2013.
Charges in the most recent quarter included severance costs for an undisclosed number of laid off employees. The move is expected to save about $100 million annually, the company has said.
“We remain dedicated to maintaining strong capital levels, returning more capital to shareholders and driving shareholder value,” Mr. Hassell said in a statement.
Revenue for the three months ended June 30 fell 7 percent to $3.7 billion from $4 billion last year.
Excluding a gain on an equity investment in the prior year, revenue declined 2 percent.
First Published July 18, 2014 12:00 AM