Bank of New York Mellon Corp beat Wall Street targets for second-quarter profit on Tuesday as the U.S. Federal Reserve's aggressive policy tightening boosted income earned from interest payments on loans.

Higher rates have helped several big U.S. banks post strong profit for the quarter and signal a resilient economy, but a pullback in consumer spending and tightening credit conditions are clouding the sector's outlook.

BNY's net interest revenue for the quarter surged 33% to $1.1 billion, compared with $824 million a year earlier.

On an adjusted basis, it reported a profit of $1.38 per share, comfortably beating analysts' average estimate of $1.22 per share, according to Refinitiv IBES data.

The upbeat results follow a tumultuous first quarter in which a global banking crisis - triggered by the collapse of three mid-sized U.S. banks - led panicked consumers to pull out billions in deposits.

Since then, sentiment has improved and deposit outflows have eased, driving a near 16.4% rise in the S&P 500 Banks index from March lows.

BNY's average deposits rose 1% to $277.2 billion on a sequential basis, but was 10.8% lower on a year-over-year basis.

The New York-based bank set aside $5 million in provisions for losses, down from $47 million a year earlier.

Assets under custody or administration (AUC/A) at BNY rose 9% in the reported quarter to $46.9 trillion from a year earlier, driven by higher quarter-end equity market levels and client flows.

Total revenue rose 5% to $4.45 billion.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Devika Syamnath)