The Bank of New York Mellon (BNY) Q3 2025 earnings summary

Executive summary

• Record revenue of $5.1 billion, up 9% year-over-year, driven by broad-based growth in Securities Services and Market and Wealth Services segments.

• Diluted EPS rose 25% year-over-year to $1.88, with pre-tax margin at 36% and ROTCE at 25.6%.

• Net income applicable to common shareholders was $1.34 billion, up 21% year-over-year; adjusted EPS was $1.91, up 26% year-over-year, excluding notable items.

• Transformation initiatives, including new commercial and platform models and AI adoption, are driving operational efficiency and sales momentum.

• $1.2 billion was returned to shareholders through dividends and share repurchases, with a payout ratio of 92%.

Financial highlights

• Fee revenue increased 7% year-over-year, led by investment services and financing-related fees; investment management and performance fees declined 2%.

• Net interest income rose 18% year-over-year to $1.24 billion, driven by higher yields and balance sheet growth.

• Noninterest/total expenses increased 4% year-over-year, mainly due to higher investments, merit increases, and revenue-related costs.

• Assets under custody/administration (AUC/A) reached $57.8 trillion, up 11% year-over-year; AUM was flat at $2.1 trillion.

• Pre-tax margin expanded to 36%, up 3 percentage points year-over-year.

Outlook and guidance

• Net interest income for Q4 expected to be flat sequentially, with full-year 2025 NII up 12% year-over-year.

• Full-year 2025 expenses (excluding notable items) projected to rise approximately 3% year-over-year.

• Effective tax rate for Q4 expected at 21%, with full-year range of 21%-22%.

• Capital return to shareholders to remain at a 90%-100% payout ratio for 2025.

• Management expects continued growth in fee revenue and net interest income, with ongoing investments in technology and efficiency initiatives.