BNY Mellon Q1 Highlights Profits from Foreign Exchange Trading

According to the company’ latest earnings report, BNY Mellon Corp’s earnings rose 16 percent, which was higher than the street estimated. The growth figures come amid lowered expenses and increased revenue from foreign exchange trading.

The decision made by the Swiss National Bank may have had an impact on the positive results of the New York headquartered bank. This puts it amongst the foreign exchange champions in the first quarter of 2015, as BNY Mellon reported that its revenues from currency trading increased by 67 percent to $217 million.

The bank cited higher Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and volumes as the main factor behind the increase. In addition, during the quarter there was a higher Depositary Receipts-related activity.

The company’s CEO and Chairman Gerald L. Hassell commented in the announcement, “Our first quarter results reflect continued progress in executing on our strategic priorities. Earnings per share growth was driven by higher revenues across all of our businesses, our success in holding our expenses in check and generating positive operating Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term.”

Throughout the first quarter of 2015 non-interest expenses at BNY Mellon have been reduced by fell 1% percent when compared to a year ago to $2.7 billion.

The custody bank's earnings totaled $766 million, which is 67 cents a share. This is substantially higher than a year ago, when BNY Mellon reported $661 million, or 57 cents a share. The market consensus was for 59 cents a share.

Revenue was $3.9 billion, which is higher by 6 percent when compared to the same period a year ago. The figure surpassed the street’s consensus estimates by about $200 million.