Global Custodian Winter 2018 | Page 94

[ G L O B A L C U S T O D Y | R A N K I N G S ] BNY Mellon bounces back to regain top GC crown After being dethroned at the top of the custody assets rankings in Q2 this year, BNY Mellon is back on top, though State Street remains close and says it still has $465 billion of assets to be installed in the future. Global custodians by assets under custody/ administration (AUC/A) Q2 AUC/A Q3 AUC/A QvQ Increase (Decrease) BNY Mellon $34.5 trillion $33.6 trillion 2.7% State Street $34 trillion $33.9 trillion 0.3% JP Morgan $24.4 trillion $24.1 trillion 1.2% Citi $21.3 trillion $22.8 trillion (6.6%) BNP Paribas $13.8 trillion $13.9 trillion (0.7%) Northern Trust $10.8 trillion $10.7 trillion 0.9% Societe Generale $5.4 trillion $5.3 trillion 1.9% *HSBC Securities Services AUC/A was not disclosed in Q3 2018, but as of Feb 2018 it stood at $11.3 trillion. B NY Mellon took back its crown as the world’s largest custodian in the third quarter of 2018, after briefly losing the title to State Street in June. Assets under custody and administra- tion (AUC/A) for BNY Mellon increased 2.6% over the previous quarter and 7% over the same period last year to $34.5 trillion. BNY Mellon recorded several high-profile mandate wins that helped propel its quarterly figures, including a massive fixed income custody man- date for South Korea’s National Pension Service (NPS), one of the world’s largest pension fund schemes. It also completed the transition of DWS’s real estate fund 94 Global Custodian Winter 2018 accounting services representing nearly $21 billion in assets onto the BNY Mel- lon platform. Charlie Scharf, CEO and chairman of BNY Mellon, said on the bank’s third quarter earnings call: “We again saw steady performance in our core custody, middle-office and fund accounting reve- nues on-boarding more than $450 billion of AUC/A across a number of investment managers and other clients.” Meanwhile State Street, which won the prestigious title after a three-year break, 0recorded an increase of $100 billion, or 0.4% over the quarter, to $34 trillion, but was up nearly 6% over the year. Howev- er, it stated in its earnings release that approximately $465 billion of assets will be installed in future periods. Similar to the top banks, the other US global custodians all recorded an increase in AUCA/A, particularly JP Morgan which recorded an increase of 1.2% to $24.4 trillion. However, the same cannot be said of its close rival, Citi, which recorded a sig- nificant quarter-on-quarter decrease of 6.6% with AUC/A falling to $21.3 trillion. Similarly, BNP Paribas Securities Services recorded a slight decrease of AUC/A over the quarter by $100 billion to $13.8 trillion, however the custodian’s assets are still up over 2% on the year.