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

Executive summary

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

• Net income applicable to common shareholders increased 36% year-over-year to $1.56B, with adjusted EPS at $2.25, excluding notable items.

• Pre-tax margin expanded to 37%, and ROTCE reached 29%, reflecting strong profitability.

• Major client wins included Allianz Global Investors, PayPal, and U.S. Treasury's Trump Accounts, with strong sales momentum and highest quarterly sales performance.

• Accelerated AI integration, with over 200 AI solutions in production and the launch of Eliza 2.0, driving productivity and efficiency.

Financial highlights

• Total revenue of $5.4B increased 13% year-over-year; fee revenue up 11%, investment services fees up 10%, and investment management/performance fees up 6%.

• Net interest income rose 18% year-over-year to $1.37B, with net interest margin up 8bps to 1.38%.

• Noninterest expense grew 5% year-over-year to $3.4B, reflecting higher investments and merit increases.

• Provision for credit losses was a $7M benefit, mainly from improved commercial real estate exposure.

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

Outlook and guidance

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

• 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.

• Management expects continued growth in fee revenue and net interest income, with balanced interest rate positioning and stable capital ratios.

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