The increase for both companies was driven by rising equity markets and by restructuring costs booked in the fourth quarter of 2011 that weren’t repeated last year. Low interest rates and lower foreign exchange trading helped keep revenue growth to about 2 percent for both BNY Mellon and Northern Trust.
State Street’s operating profit excludes money earned from the sale or maturing of bonds whose value was written down in May 2009, which the company records as “discount accretion” within net interest income.
Custody banks keep records, track performance and lend securities for institutional investors including mutual funds, pension funds and hedge funds. State Street also manages investments for individuals and institutions.