Bank of New York Mellon Corp.'s profits skidded 43 percent in the second quarter as it took another hit in its investment portfolio because of declines in the housing market.

The bank yesterday reported net income of $176 million, or 15 cents per share, down from $309 million, or 27 cents, in the same period a year earlier. BNY Mellon earned $322 million, or 28 cents, in the first quarter this year.

Revenue, excluding investment write-downs, was $3.21 billion, a decline of 18 percent from $3.91 billion in the second quarter of 2008. Securities portfolio losses totaled $256 million, up 68 percent from losses of $152 million a year earlier.

"Investment losses remain stubbornly high primarily due to continued deterioration in the residential housing market," CEO Robert Kelly said in a statement.

The bank's provision for credit losses shot up to $61 million from $13 million a year ago. In the first quarter this year, the provision was $59 million.

BNY Mellon last month repaid the $3.04 billion it received under the government's Troubled Asset Relief Program.

"Overall, revenue has stabilized, we continue to gain market share, remain profitable and have among the best capital levels in our industry," Mr. Kelly said.

BNY Mellon's earnings were hurt by charges related to the TARP money, a special assessment by the Federal Deposit Insurance Corp. and the planned sale of Mellon United National Bank in Miami, the company said.

During the second quarter, housing market indicators and the broader economy continued to deteriorate, BNY Mellon said.

"We expect a slow recovery in the U.S. economy and globally," Mr. Kelly said during a conference call with Wall Street analysts.

Shares of BNY Mellon fell $1.79, or 6.15 percent, to close at $27.32 yesterday.