Global custodians BNY and JP Morgan weathered a falling equity market, both scoring increases in their volumes of safekept assets. Per 31 March, market leader BNY had seen its AUC/A measure go up 2 percent versus three months earlier, while the world’s number three JP Morgan had gained 1 percent in what it reports as AUC. The corresponding fee revenues, however, were down by around 1 and 3 percent respectively. Both firms reported Friday, being the first large global custodians to do so.
Broad US equity index S&P 500 went down by near 5 percent in the three-month period to 31 March, but up 7 percent year-on-year.
At BNY, most of the $1,329 million in investment services fees are made up by the asset servicing fees of $1,062. Year-on-year growth in the latter, of 5 percent, was described as “primarily reflecting higher market values and net new business”. Quarter-on-quarter, however, the measure was about 1 percent down. The explanation for the company’s 9-percent year-on-year increase in assets under custody and administration (AUC/A) was practically the same, “primarily reflecting client inflows, higher market values and net new business”.
JP Morgan observed “Securities Services revenue of $1.3B, up 7% YoY, driven by fee growth on higher client activity and market levels as well as higher deposit balances, partially offset by deposit margin compression”.
We will be reporting the other global custodians as they come in. We keep an index of our custodian revenues news posts here.
