US 10-year Treasury yield levels not unprecedented, BNY CEO says
BK•BNY CEO Robin Vince said 10-year Treasury yields near 5.25% were not unprecedented. BNY’s profit applicable to common shareholders rose 20% to $1.61 billion, or $2.34 per share, while assets under custody and administration climbed 10% to $63.4 trillion.
1. Yields and the economy
Robin Vince said the rapid rise in 10-year Treasury yields reflected a normalization of the yield curve and argued that US economic strength was a primary driver of inflation and higher rates. The benchmark yield’s July-September increase was its sharpest since 1994.
2. Quarterly results and deposits
BNY’s profit applicable to common shareholders increased 20% to $1.61 billion, or $2.34 per share, for the three months ended September 30, driven by interest income growth and stronger market levels that lifted client asset values. Assets under custody and administration rose 10% to $63.4 trillion. CFO Dermot McDonogh said average deposits are expected to pick up in the fourth quarter alongside client activity; net interest income accounts for roughly 25% of revenue.
