The Bank of New York Mellon reported net income applicable to common shareholders of $505 million for the fourth quarter, down from $679 million a year earlier. Net income for the full year was broadly flat compared to 2010, at $2.5 billion.

Total revenue on a GAAP basis at BNY Mellon for the fourth quarter was $3.5 billion, down by 6 per cent from a year earlier.

Assets under management, excluding securities lending assets, stood at $1.26 trillion at year-end, up by 8 per cent from the prior year and 5 per cent sequentially, with the year-over-year increase due to net new business. Assets under custody and administration rose 3 per cent over the year to $25.8 trillion.

Investment management and performance fees decreased 9 per cent year-over-year to $730 million. Over the period, net new business was offset by factors such as higher money market fee waivers, lower performance fees and weaker international equity markets, the firm said.

Total fee revenue in Q4 was $2.8 billion, compared to $2.97 billion a year earlier. With net securities losses of $3 million, total fee and other revenue stood at $2.8 billion.

Meanwhile, the firm reported a $5 million loss for the fourth quarter from consolidated investment management funds and net interest revenue after provision for credit losses of $757 million.

Total noninterest expense was $2.8 billion for the quarter, with staff costs at $1.4 billion and restructuring charges of $107 million. Excluding restructuring charges, M&A expenses and amortization of intangible assets, total noninterest expenses (non-GAAP) fell by 2 per cent year-over-year due to lower staff expense, partly offset by higher litigation expense, the bank said.

“It was a challenging revenue quarter, as general uncertainty in the financial markets resulted in lower-than-normal levels of client activity. Our results were also impacted by seasonality in our Depositary Receipts business. We remained focused on driving our operational excellence initiatives and managing our expense base lower to offset weak market conditions,” said Gerald Hassell, chairman, president and chief executive of BNY Mellon.