BNY Mellon announced an increase in first-quarter profit, supported by growth in both fee revenue and net interest income. The bank's Chief Executive Officer indicated there are reasons for economic and market optimism despite ongoing conflict in the Middle East.

"Looking at core buying activity and market positioning, you can sense an underlying willingness for the market to move higher," CEO Robin Vince stated in an interview. "However, there are numerous factors that still require close monitoring, as unexpected developments can occur at any time."

Vince noted that improving risk conditions were reflected by U.S. stocks reaching record highs on Wednesday and the volatility index returning to levels seen before the recent conflict escalated. He also mentioned that the end of tax season is expected to boost retail market activity in the coming weeks, and the conclusion of corporate earnings blackout periods may lead to increased stock buybacks.

Despite these positive signs, Vince warned that economic risks stemming from Middle East tensions and elevated energy prices remain. "The war is not over, and energy prices are higher than at the start of the year—these effects will gradually work their way through the economy," he said. Sustained high energy costs could impact pricing, commodity expenses, and credit conditions. "We haven't reached that point yet, so we really need to wait and see how things develop," Vince added.

For the first quarter, the bank reported a rise in profit driven by increases in fee income and net interest income. Net profit reached $1.63 billion, or $2.24 per share, up from $1.22 billion, or $1.58 per share, in the same period last year.

Adjusted earnings per share were $2.25, exceeding the $1.93 per share forecast by analysts surveyed by Refinitiv. Revenue grew by 13% to $5.41 billion, compared to Wall Street expectations of $5.18 billion.

Fee revenue increased by 11%, benefiting from higher client activity, new business growth, improved market valuations, stronger foreign exchange revenue, and favorable impacts from a weaker U.S. dollar. Net interest income rose by 18%, reflecting the continued reinvestment of securities at higher yields and an expanded balance sheet.