The Bank of New York Mellon (BK) investor relations material

Executive summary

• EPS of $2.24 rose 42% year-over-year, with record revenue of $5.4 billion, up 13% year-over-year, driven by broad-based growth in Securities Services and Market and Wealth Services.

• Pre-tax margin expanded to 37%, and return on tangible common equity reached 29%, reflecting strong profitability.

• Strong capital returns with $1.4 billion returned to shareholders and a new $10 billion share repurchase program authorized.

• Significant AI integration across operations, with over 200 AI solutions deployed and a company-wide platform approach, driving productivity and efficiency.

• Strategic client wins included Allianz Global Investors, PayPal for digital asset custody, and the U.S. Treasury's Trump Accounts program.

Financial highlights

• Total revenue of $5.4 billion increased 13% year-over-year; fee revenue up 11%.

• Net interest income rose 18% year-over-year to $1.37 billion, driven by higher yields and balance sheet growth.

• Expenses were $3.4 billion, up 5% year-over-year, reflecting investments and merit increases, partially offset by efficiency savings.

• Net income applicable to common shareholders was $1.56 billion, up 36% year-over-year.

• Adjusted diluted EPS was $2.25, up 42% year-over-year.

Outlook and guidance

• Full-year 2026 revenue growth (excluding notable items) raised to ~6% year-over-year.

• Net interest income expected to be up ~10% year-over-year for 2026.

• Expense growth for 2026, excluding notable items, expected at the top of the 3%-4% range.

• Quarterly tax rate expected to remain at ~23% for the rest of the year.

• Medium-term targets include continued margin expansion, productivity gains, and AI-driven scalability.