UPDATE 1-BNY Mellon's 4th-qtr profit climbs 23 percent

BOSTON, Jan 16 (Reuters) - BNY Mellon Corp said on Wednesday that fourth-quarter earnings rose 23 percent, matching Wall Street estimates, as the stock market lifted investment management and performance fees at the world's largest custody bank.

Net income was $622 million, or 53 cents a share, matching analysts' consensus estimates, according to Thomson Reuters I/B/E/S. A year ago, net income was $505 million, or 42 cents a share.

Investment management and performance fees surged 17 percent to $853 million from year-ago levels on buoyant stock market returns. Fees from investment services totaled $1.6 billion, a 1 percent year-over-year increase.

Assets under custody and administration rose 9 percent to $26.7 trillion from year-ago levels. BNY Mellon is the world's largest custody bank.

Revenue from trading foreign currencies continued to be a weak spot. Foreign exchange revenue totaled $106 million, a 42 percent drop from year-ago levels on declining volatility and volumes.

The bank also is battling several lawsuits, defending itself against claims of overcharging pension funds and other customers on forex fees, a charge it steadfastly denies.