BNY Mellon Corp. has made a statement on Wednesday that their first quarter revenues have fallen by a level of about 1 %. It also happens to be the world’s largest bank in terms of the custody. According to them the loss is the result of the high stakes and the varying tax battles through which the bank had been going for quite some time now. The opponent here happens to be the US Internal Revenue Service. The amounts which have been lost during the process are about $ 266 million which is around 23 cents per share. It indeed reflects a decision that was taken from the side of a US Tax Court. The decision had been taken in the month of February which triggered a charge of $ 854 million that had been previously announced. In the year before, BNY Mellon had made a statement about their net income which was about $ 619 million. While excluding the charges related to the taxes, the company was able to bag profits of about 50 center per share. But still these amounts missed the estimates that had been made from the side of the analysts who predicted the profits to be about to be 2 cents more than the specified amount per share. The revenue totaled to an amount of about $ 3.61 billion which is down by a level of 1 % in comparison to the past year.
The bright spots here can be termed to be the 10 % gains which have been seen in the investment management and for the performance fees. At the same time, these gains have also extended to the domains of exchange trading. Moreover, the net interest total revenue has also fallen by a level of about 6 % taking the count to $ 719 million. These amounts do come to reflect the lower yields in terms of the reinvested securities and the observable elimination of the varying interests on the different European Central Bank Deposits. It is now as evident as it gets that the bank needs to take some strict measures and tactics in terms of notching the revenue to higher levels.