© Reuters. FILE PHOTO: The Financial institution of New York Mellon Corp. constructing at 1 Wall St. is seen in New York’s monetary district March 11, 2015. REUTERS/Brendan McDermid

(Reuters) – Financial institution of New York Mellon (NYSE:) Corp beat first-quarter revenue estimates on Tuesday, benefiting from the Federal Reserve’s fee hikes that boosted the lender’s curiosity revenue.

Banks have been main beneficiaries of the Fed’s aggressive financial coverage aimed toward curbing decades-high inflation, which has additionally led to heightened market volatility and credit score tightening.

The U.S. banking trade was thrown right into a turmoil final month as financial institution failures dented investor confidence, pressuring each inventory and bond markets.

The collapse of Silicon Valley Financial institution, the biggest financial institution to fail for the reason that 2008 monetary disaster, fanned fears of a liquidity crunch and put monetary establishments below scrutiny.

BNY’s common deposits, a key metric traders have been specializing in this quarter following the financial institution sector troubles, fell 3% to $274 billion, in contrast with the tip of final 12 months. They dropped 13% on a year-over-year foundation.

The banking disaster together with the already present considerations a few recession prompted BNY to put aside $27 million in provisions for losses, up from $2 million a 12 months earlier.

On an adjusted foundation, the financial institution reported a revenue of $1.13 per share, edging previous analysts’ common estimate of $1.12 per share, in keeping with Refinitiv IBES information.

The New York-based lender’s web curiosity revenue for the quarter surged 62% to $1.1 billion, in contrast with $698 million a 12 months earlier.

Belongings below custody and administration elevated 2% to $46.6 trillion, reflecting shopper inflows and web new enterprise, the financial institution stated.

Quarterly income jumped 11% to $4.4 billion.

(This story has been corrected to alter the worth of property below custody and administration to $46.6 trillion, not $46.4 trillion, in paragraph 9; clarifies common deposits, corrects the deposit determine to $274 billion, not $167 billion, in paragraph 5 and provides the dropped greenback signal within the final paragraph)