The Bank of New York Mellon Corp (NYSE:BK) shares eased in premarket trading, after the bank delivered a mixed set of fourth quarter results, thanks to the recently passed law reform in the US.
In a statement, the world's largest custodian bank said it had clocked in profits of US$1.18bn ($1.08 per share), comfortably beating market expectations for 91 US cents a share.
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The results included a US$427mln estimated net benefit related to the Tax Cuts and Jobs Act.
Revenue however painted a different picture, dropping by 2% to US$3.73bn, and falling short of Wall Street’s hopes for US$4bn.
The bank blamed the drop to the size of a charge related to the new tax law, which hit total revenue growth by about 8%. Investment management and performance fees increased 13%.
The bank said it had recorded a US$320mln charge related to the new tax law.
It was also hit by a 11% rise in severance charges, attributed mainly to the US$282mln severance, litigation and other charges.
Chief Executive Charles Scharf said the charges stemmed from an ongoing review of the bank's performance and that this to be completed by March 8, when it holds its investor event.
In premarket, its shares were down 3.96% at US%55.60.