BNY's Custody Business Grows Double Digits as Bank Beats Forecasts

what happened

According to Barron's, BNY no longer reports revenue from its Pershing advisor custody business as a separate line. Those results now sit under Wealth Solutions, which posted $813 million in third-quarter revenue, up 10% year over year. Fee revenue for the unit reached $554 million, up 7%, helped by higher market valuations and new business. A BNY spokeswoman said the Pershing brand would remain "as is."

BNY's earnings per share came in at $2.37, up 24% from a year earlier and above the analyst forecast of $2.27. Total revenue reached $5.68 billion, up nearly 12% and topping the consensus estimate of $5.55 billion. Assets under custody or administration totaled $63.4 trillion, up 10%, while assets under management rose 2% to $2.2 trillion. Shares were up about 3% at midday Thursday.

CEO Robin Vince cited "broad-based growth across our platforms" amid what he described as a "constructive but uneven" operating environment. The bank is also retiring the Wove brand for its advisor technology platform, launched in 2023, and plans to combine its best elements with new artificial-intelligence features, updated clearing and custody applications, and an improved investor interface.

why it matters

The quarter suggests that fees and custody income continue to support revenue at large custodian banks even when demand is uneven. Profit ahead of expectations and rising assets under custody point to resilience in this model, which investors watch when assessing the US financial sector.

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