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

Executive summary

• Q3 revenue was $5.698bn, up 12% YoY; net income applicable to common shareholders was $1.608bn, up 20%, and diluted EPS was $2.34, up 24%.

• Pre-tax income rose 18% YoY to $2.186bn; pre-tax margin was 38.5% and ROTCE was 29.0%.

• Growth was broad-based across products, client segments and regions, marking the 15th consecutive quarter of YoY sales growth.

Financial highlights

• Total fee revenue rose 12% YoY to $4.078bn; Investment Services fees increased 15%, while Investment Management and Performance fees grew 3%.

• NII increased 15% YoY to $1.423bn; investment and other revenue was $175M, and provision for credit losses was $1M.

• Noninterest expense rose 8% YoY to $3.489bn; more than three-quarters of the increase was revenue-related, with investments partly offset by efficiency savings.

• Adjusted EPS was $2.37, up 24% YoY; adjusted pre-tax margin was 38.9%, versus 37.1% a year earlier.

Outlook and guidance

• FY26 positive operating leverage outlook rose to nearly 500 bps, from 400 bps three months earlier and slightly over 100 bps at the start of the year.

• FY26 total revenue growth, excluding notable items, is expected near the midpoint of a 12%-13% range, market dependent; NII is expected to rise 15% YoY.

• FY26 expense growth, excluding notable items, is expected near the midpoint of a 7%-8% range, up 100 bps from prior guidance.

• Q4 NII is expected to benefit from higher reinvestment yields and a seasonal deposit pickup; roughly $5B of securities roll off each quarter.