BNY third-quarter EPS rises 24% to $2.34 on 12% revenue growth

The Bank of New York Mellon Corporation (BNY) said in a regulatory filing that third-quarter diluted earnings per share rose 24% from a year earlier to $2.34.

Total revenue increased 12% to $5.7 billion, and the company returned $1.4 billion of capital to common shareholders, the filing said.

Here's how the company did:

• Diluted earnings per share: $2.34 vs. $1.88 a year earlier
• Total revenue: $5,676 million vs. $5,081 million a year earlier
• Net income applicable to common shareholders: $1,608 million vs. $1,339 million a year earlier
• Pre-tax operating margin: 38.5% vs. 36.4% a year earlier

Compared with the second quarter, total revenue was flat at $5,676 million, down from $5,698 million.

Diluted earnings per share fell 4% from $2.45 in the second quarter. Net income applicable to common shareholders fell 5% from $1,696 million.

Fee revenue rose 12% to $4,078 million. The company attributed the increase mainly to net new business, higher client activity and higher market values.

Net interest income rose 15% to $1,423 million, primarily reflecting the reinvestment of investment securities at higher yields and balance sheet growth. Deposit margin compression partly offset that gain.

Investment and other revenue was $175 million, down from $208 million a year earlier. The filing cites fixed income and equity trading activity, seed capital results and the absence of a third-quarter 2025 disposal gain.

Noninterest expense rose 8% to $3,489 million, primarily reflecting higher revenue-related expenses and investments. Efficiency savings partly offset that increase.

Excluding notable items, adjusted noninterest expense was $3,467 million. Severance expense was $23 million in the quarter.

The provision for credit losses was $1 million, compared with a negative $7 million a year earlier.

CEO Robin Vince said: "Our performance in the quarter once again highlights the resilience and durability of our business model against the backdrop of an overall constructive but uneven operating environment."

Vince also said: "Client demand continued to grow, underpinned by our ongoing work to unlock the value inherent in the combination of BNY's businesses enabled by our platform operating and commercial models."

The Securities Services segment reported total revenue of $2,820 million, up 15% from a year earlier. Its income before taxes was $1,008 million, up 24%.

Issuer Services investment fees rose 43%, primarily reflecting higher Corporate Trust fees, the filing said.

The Market and Wealth Services segment reported total revenue of $1,984 million, up 12%. Its pre-tax operating margin was 51.4%, compared with 48.9% a year earlier.

The Investment and Wealth Management segment reported total revenue of $857 million, up 4%. Assets under management were $2.2 trillion, up 2%, and Wealth Management client assets were $354 billion, up 2%.

The Other segment posted a loss before taxes of $44 million, compared with a $25 million loss a year earlier. The company said the change reflects the absence of 2025 real estate sale gains, partly offset by a 2026 strategic equity investment gain.

The common equity Tier 1 ratio was 10.9%, down from 11.7% a year earlier. The Tier 1 leverage ratio was 5.7%, down from 6.1%. The company said its regulatory capital ratios for Sept. 30 are preliminary.

The company returned $1,373 million to common shareholders in the quarter. That total included $436 million of dividends and $937 million of share repurchases.

Cash dividends per common share were $0.63, up from $0.53 a year earlier. The total payout ratio was 86% year-to-date.

Average deposits were $311 billion, up 4% from a year earlier and down 1% from the second quarter. Assets under custody and/or administration were $63.4 trillion, up 10%.

Full-time employees totaled 46,600, down from 49,200 a year earlier.

The release did not include new full-year outlook figures. The company said CEO Robin Vince and Chief Financial Officer Dermot McDonogh would host a conference call on the results and outlook.

The company said preliminary business metrics and regulatory capital ratios are subject to change as it completes its quarterly report on Form 10-Q.