The Bank of New York Mellon (BK) Q4 2025 earnings summary

Executive summary

• Achieved record net income of $5.3 billion and record revenue of $20.1 billion for 2025, with revenue up 8% year-over-year and EPS up 28%, and ROTCE at 26%.

• Four consecutive quarters of positive operating leverage in 2025, with pre-tax margin improving to 35% and $5.0 billion returned to shareholders.

• Strategic priorities included deepening client relationships, advancing AI adoption, and launching innovative digital asset solutions, with significant investments in technology and new commercial models.

• Transitioned over 70% of staff to a platform operating model, enhancing agility and productivity.

• Launched new products such as the Dreyfus Stablecoin Reserves Fund, tokenized deposit capabilities, and Eliza 2.0 AI platform, with 99% employee adoption and over 60 AI-related patent applications.

Financial highlights

• Q4 2025 revenue was $5.2 billion, up 7% year-over-year; full-year revenue reached $20.1 billion, up 8% year-over-year.

• Full-year net income was $5.3 billion, up 22% year-over-year; pre-tax income for 2025 was $7.1 billion, up 21% year-over-year.

• EPS for 2025 was $7.40, up 28% year-over-year; adjusted EPS excluding notable items was $7.50, up 24% year-over-year.

• Net interest income increased 13% in Q4 and 15% for the year; noninterest expense was flat in Q4 and up 3% for the year.

• AUC/A at period end was $59.3 trillion, up 14% year-over-year; AUM at $2.2 trillion, up 7% year-over-year.

Outlook and guidance

• 2026 revenue expected to grow 5% year-over-year, with expenses up 3%-4%, both excluding notable items; targeting over 100 basis points of positive operating leverage.

• Medium-term targets raised: pre-tax margin to 38%+ and ROTCE to 28%+.

• Quarterly tax rate expected at 23% for 2026, with a Q1 tax benefit from stock award vesting.

• Management expects continued positive momentum and greater scale and growth across platforms.