Bank of New York Mellon’s first-quarter profit improved as the stock market’s rally in the period boosted investment management fees.

Net income at the $338 billion-asset company rose 9% to $880 million from the year-earlier period. Earnings per share increased 14% to 83 cents, 3 cents higher than the average estimate of analysts compiled by FactSet Research Systems. Revenue rose 3% to $3.8 billion.

In a news release Thursday, Chairman and CEO Gerald L. Hassell said the company benefited from improved asset management flows, which reached their highest levels since 2014, and increased assets under custody and administration, which hit record highs.

BNY Mellon Chairman and CEO Gerald L. Hassell said that asset management flows reached their highest levels since 2014 and that assets under custody and administration hit record highs in the first quarter.

Assets under custody and administration increased 5% to $30.6 trillion. The total included $109 billion of new asset-servicing business secured during the first quarter. Assets under management rose 5% to $1.7 trillion.

Fee-based revenue rose 2% to $3.02 billion; fees make up about two-thirds of BNY Mellon’s revenue. Investment management and performance fees rose to $842 million on higher market values, offset by the stronger U.S. dollar versus the British pound. Clearing-service fees rose 7% to $376 million.

Net interest revenue increased 3% to $792 million due to higher interest rates. The average yield on trading account securities rose nearly 100 basis points to 3.12%.

Noninterest expense was little changed at $2.6 billion, including costs of $52 million for the amortization of intangible assets and $8 million for litigation and restructuring charges.

Andy Peters

Andy Peters

Andy Peters writes about regional banks, consumer finance and debt collections for American Banker.