* Q2 outflows more than doubled due to loss of clients
* Loss of clients to hurt subsequent quarters
* Shares down as much as 6 pct (Adds analyst comment, details from conference call; updates share move)
By Diptendu Lahiri
July 19 (Reuters) - Bank of New York Mellon Corp's second-quarter outflows more than doubled, as the world's largest custodian bank said it lost two clients and warned that the departures would impact results in the next few quarters.
The company's shares fell as much as 6 percent on Thursday, their biggest percentage drop in two years.
Chief Executive Officer Charles Scharf did not identify the two clients on a conference call with analysts, but said the company was working to add new clients, which would help it mitigate the exits.
"While these losses will impact us on a year-over-year basis for the next few quarters, we are also in the process of onboarding several large clients, which will positively impact our results, starting predominantly in the second half of next year," Scharf said.
Total net outflows rose to $26 billion from $10 billion in the first quarter.
"Weak revenue growth and outflows in asset management business because of loss in clients are making the investors unhappy," said Jeffery Harte, analyst at Sandler O'Neill & Partners.
BNY Mellon reported a better-than-expected second quarter profit, helped by higher fee revenue and lower income tax provision.
Provision for income tax fell 14 percent to $286 million in the quarter from a year earlier. Fee revenue rose 3 percent to $3.21 billion, as the company benefited from higher interest rates and equity markets.
The bank said net income applicable to common shareholders jumped 14 percent to $1.06 billion, or $1.03 per share, in the quarter ended June 30.
Analysts on average had expected earnings of $1.02 per share, according to Thomson Reuters I/B/E/S.
Total revenue rose 4.6 percent to $4.14 billion.
Non-interest expenses increased 3.4 percent to $2.75 billion because of a weak dollar.
Assets under custody and administration rose to $33.6 trillion from $33.5 trillion in the first quarter. (Reporting by Diptendu Lahiri in Bengaluru; Editing by Maju Samuel and Saumyadeb Chakrabarty)