Shares in Bank of New York Mellon tumbled nearly 6 per cent on Thursday after the losses of two big clients raised concerns about pressures on the business.
BNY maintains records, tracks performance and lends securities for institutional investors. Charles Scharf, chairman and chief executive, told investors that the client losses would weigh on its results for several quarters.
“We are focused on increasing the rate of revenue growth,” he said.
“Given the nature of our business, it takes time - and therefore it is very hard to draw any conclusions in individual quarters good or bad.”
Mr Scharf, a former JPMorgan Chase banker, was hired to run BNY last summer with a brief to inject new dynamism into the 230-year-old institution, with technology-driven reforms. Earlier this year he pledged to spend much of its windfall from the corporate tax cuts on staff and investments in the business, including tech spending.
The stock is down 5.6 per cent in morning trade at $52.50, putting it on track for its worst day since June 2016
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