Mellon posts juicy first quarter

Mellon Financial Corp. reported a 22% increase in first-quarter profit after an acquisition helped boost its assets over the $1 trillion mark.
Pittsburgh-based Mellon, which is set to merge with Bank of New York Co. in the third quarter, posted net income of $243 million, or 58 cents per share for the quarter, compared to $193 million, or 47 cents per share during the year-ago period.
Analysts surveyed by Reuters Estimates forecasted earnings of 58 cents per share.
Net income, which includes a $9 million after tax gain from the sale of Mellon’s insurance premium financing company, rose to $252 million or 60 cents per share from $207 million or 50 cents per share in the year-ago period.
The first quarter results also included $8 million in merger related expenses and a $12 million litigation reserve charge which amounts to approximately 3 cents per share.
Assets under management increased 28% to a record $1.034 trillion, boosted in part by improved equity markets and the acquisition of asset manager Walter Scott & Partners.
Asset and wealth management fees increased 31% to $609 million.
Assets under custody rose 17%, climbing to a record $4.81 trillion.