(Bloomberg) -- The Fed’s quarter-point rate increase is proving a boon to custody banks.

On Thursday, Bank of New York Mellon reported a 5% increase in first-quarter profit as higher interest rates boosted income from investments and allowed the bank to recoup some fee waivers on money market funds. Earlier in the week Chicago-based Northern Trust said its first quarter profit rose 4.8%, in part because of the benefits of higher short-term interest rates.

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