BNY Mellon expects $100-million revenue hit in first quarter from Russia pullback

1 min read
The Bank of New York Mellon Corp. building at 1 Wall St. is seen in New York's financial district

– Bank of New York Mellon Corp said on Thursday it has paused new banking business in Russia and expects a $100-million revenue impact in the first quarter as it joins a host of companies pulling out from the country after it invaded Ukraine.

The annual revenue of the world’s largest custodian bank is also expected to reduce by $80 million to $100 million going forward, the bank said, adding it has halted buying Russian securities under its investment management business.

Operating in Russia has become harder for Western financial institutions as international sanctions crimp the country’s economy. Russia calls its actions in Ukraine “a special operation”.

Last week, Wall Street giants Goldman Sachs Group Inc and JPMorgan Chase & Co became the first major U.S. banks to announce they were unwinding their Russia business.

(Reporting by Niket Nishant in Bengaluru; Editing by Arun Koyyur)

tagreuters.com2022binary_LYNXNPEI2G15V-BASEIMAGE