*

BNY's assets under custody and administration rose 11% to

$57.8

trillion

*

Net interest income rose 18%, exceeding Wall Street

expectations

*

Asset servicing revenue up 12% YoY, highest growth since

Q1 2018

(Adds details throughout)

Oct 16 (Reuters) - BNY reported a 21% jump in

third-quarter profit on Thursday, as it earned higher interest

and fees, while soaring equity markets boosted the value of its

client assets.

U.S. stock markets hit record levels in the latest

quarter as AI exuberance and hopes of interest rate cuts

prompted investors to look past labor market weakness and

inflation worries.

BNY's assets under custody and administration rose 11% in

the quarter ended Sept. 30 to $57.8 trillion from a year

earlier. The Wall Street bank said the rise reflected higher

market values and client inflows.

Its total revenue jumped 9% to a record $5.08 billion in the

quarter.

Net interest income (NII) - the spread between earnings from

assets and costs on liabilities - also rose 18%, smashing

analysts expectations of 12.6% growth, according to estimates

compiled by LSEG.

The quarter saw BNY's NII grow at the highest pace since the

second quarter of 2023, underscoring borrower resilience

observed across the biggest U.S. banks' results this week.

Profit applicable to BNY shareholders came in at $1.34

billion, or $1.88 per share, compared with $1.11 billion, or

$1.50 per share, a year earlier.

Assets under management remained flat over the same

period as higher market values were offset by net outflows.