(Bloomberg) -- Shares of Bank of New York Mellon Corp. rebounded, reversing losses of as much as 5.2% after the lender signaled an end to the slide in deposits.

The bank reported Tuesday that total deposits dropped 5% in the quarter through September from the previous three months, while assets under management at $1.82 trillion fell short of analysts’ forecasts for $1.91 trillion. Both net interest revenue and adjusted earnings per share fell 8% from the previous quarter, fueling losses in the shares.

Executives on an earnings calls later indicated deposits are likely to be stable going forward, and reaffirmed their growth targets for 2023, including a goal for a 20% gain in net interest revenue. Those comments prompted a recovery in the stock, which rallied as much as 5%. 

“Management gave some indicators that suggest a third-quarter conditional trough in deposits and more stability in deposits going forward,” Bloomberg Intelligence analyst Paul Gulberg said.

BNY Mellon, which says it’s the largest custodian bank in the world, reported assets under custody or administration of $45.7 trillion as of Sept. 30. That compares with $46.9 trillion at the end of June. Led by Chief Executive Officer Robin Vince, it reported better-than-expected earnings last quarter after scoring a boost from higher rates. 

BNY forayed into the crypto industry and last year launched a digital asset custody platform allowing some clients to hold and transfer Bitcoin and Ether. Vince has cautioned the firm’s push into crypto is moving “exceptionally slowly” and that the crypto custody service is not the main focus of their digital assets journey. 

(Updates with rally in shares. An earlier version corrected the timing of a research note publication.)

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