LONDON (ShareCast) - (Sharecast News) - Bank of New York Mellon stock tumbled on Thursday after the US financial services group said it had lost two clients, overshadowing otherwise solid second-quarter earnings.
The custodian bank, which manages records and lends securities on behalf of institutional investors, did not name the clients. But chairman and chief executive Charles Scharf confirmed that the losses would "impact us on a year-over-year basis for the next few quarters".

At 1630 BST the shares were down 6.15% at $52.26, their biggest percentage drop in two years.

Scharf insisted, however, that the custodian banking colossus was in the process of "onboarding several large clients", which if successful, would positively impact results starting in the second half.

The client departures mean that net outflows surged to $26bn in the second quarter, from $10bn in the first.

BNY Mellon reported better than expected second-quarter profits, however, boosted by higher fee revenues and lower income tax provision.

Total revenue rose 4.6% to $4.14bn, while assets under custody and administration rose to $33.6trn from $33.5trn in the previous quarter.

Scharf, a former JP Morgan Chase banker, was bought in last summer. He has been tasked with bringing more dynamism and technology-driven reforms to the 230-year-old-insitution.

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