The Bank of New York Mellon Corporation — Third Quarter 2026 Earnings Summary

Financial Performance

• Total revenue was $5,676 million, a 12% increase year-over-year (YoY) and flat sequentially.
• Fee revenue was $4,078 million, up 12% YoY and 1% sequentially.
• Net interest income was $1,423 million, up 15% YoY and down 2% sequentially.
• Noninterest expense was $3,489 million, up 8% YoY and 1% sequentially.
• Net income applicable to common shareholders was $1,608 million, up 20% YoY and down 5% sequentially.
• Diluted earnings per share (EPS) was $2.34, up 24% YoY and down 4% sequentially.
• Pre-tax operating margin was 38.5%, compared to 36.4% YoY and 39.8% sequentially.
• Return on common equity (ROE) was 16.0%, compared to 13.7% YoY and 17.2% sequentially.
• Return on tangible common equity (ROTCE) was 29.0%, compared to 25.6% YoY and 31.3% sequentially.
• Average loans were $86.8 billion, up 19% YoY and 1% sequentially.
• Average deposits were $311.1 billion, up 4% YoY and down 1% sequentially.
• Assets under custody and/or administration (AUC/A) were $63.4 trillion at period end, up 10% YoY and 1% sequentially.
• Assets under management (AUM) were $2.2 trillion at period end, up 2% YoY and flat sequentially.
• Provision for credit losses was $1 million.

Guidance and Future Outlook

• Management stated that client demand continued to grow, underpinned by the combination of BNY's businesses enabled by platform operating and commercial models.
• Sales and pipelines remained very healthy across products, client segments, and regions.
• Several new solutions were launched during the quarter to meet emerging market needs.
• Management expressed that teams are energized by BNY's momentum and excited about opportunities to create value for clients and shareholders.

Business Segments and Product Lines

• Securities Services:
  • Total revenue was $2,820 million, up 15% YoY and flat sequentially.
  • Asset Servicing revenue was $2,130 million, up 12% YoY and flat sequentially.
  • Issuer Services revenue was $690 million, up 27% YoY and down 2% sequentially.
  • Securities lending revenue was $92 million, up 48% YoY and 18% sequentially.
  • Average loans were $12.5 billion, up 17% YoY.
  • AUC/A for the segment was $45.9 trillion, up 11% YoY.
• Market and Wealth Services:
  • Total revenue was $1,984 million, up 12% YoY and 1% sequentially.
  • Wealth Solutions revenue was $813 million, up 10% YoY and 1% sequentially.
  • Payments and Trade revenue was $579 million, up 14% YoY and 1% sequentially.
  • Clearance and Collateral Management revenue was $592 million, up 12% YoY and flat sequentially.
  • Average loans were $57.7 billion, up 25% YoY.
  • AUC/A for the segment was $17.1 trillion, up 7% YoY.
• Investment and Wealth Management:
  • Total revenue was $857 million, up 4% YoY and down 1% sequentially.
  • Investment Management revenue was $562 million, up 1% YoY and down 3% sequentially.
  • Wealth Management revenue was $295 million, up 11% YoY and 3% sequentially.
  • AUM for the segment was $2.2 trillion, up 2% YoY and down 2% sequentially.
  • Wealth Management client assets were $354 billion, up 2% YoY.
• Other Segment:
  • Total revenue was $18 million, compared to $19 million YoY and $6 million sequentially.
  • Loss before taxes was $44 million, compared to a loss of $25 million YoY.

Market and Competitive Landscape

• BNY serves over 90% of Fortune 100 companies and nearly all top 100 banks globally.
• The company works with over 90% of the top 100 pension plans.
• Revenue growth was driven by higher market values, net client inflows, net new business, and higher client activity.
• AUC/A growth was partially offset by the unfavorable impact of a stronger U.S. dollar.
• AUM growth was partially offset by cumulative net outflows and the unfavorable impact of a stronger U.S. dollar.
• Net interest income growth was partially offset by deposit margin compression.

Risks and Challenges

• A stronger U.S. dollar negatively impacted AUC/A and AUM growth.
• Deposit margin compression offset gains from reinvestment of investment securities at higher yields.
• Investment and other revenue was impacted by fixed income and equity trading activity, seed capital results, and the absence of a 3Q25 disposal gain.
• Noninterest expense increases were driven by higher revenue-related expenses and investments.
• The Other segment loss was impacted by the absence of 3Q25 real estate sale gains and higher severance expense.

Management Commentary and Tone

• CEO Robin Vince described the results as "strong" with "broad-based growth across our platforms."
• Management highlighted "significant operating leverage" and a "very solid pre-tax margin of 39%."
• The business model was described as having "resilience and durability" against a "constructive but uneven operating environment."
• Management noted that "teams around the world are energized by BNY's momentum."

Other Key Points

• Capital returned to common shareholders totaled $1.4 billion, consisting of $436 million in dividends and $937 million in share repurchases.
• The total payout ratio was 86% year-to-date.
• Common Equity Tier 1 (CET1) ratio was 10.9%, down from 11.0% sequentially and 11.7% YoY.
• Tier 1 leverage ratio was 5.7%, down from 5.9% sequentially and 6.1% YoY.
• Average liquidity coverage ratio (LCR) was 111% and average net stable funding ratio (NSFR) was 129%.
• Book value per common share was $58.43, and tangible book value per common share (Non-GAAP) was $32.22.
• A joint venture with the Canadian Imperial Bank of Commerce (CIBC Mellon Trust Company) included $2.3 trillion in AUC/A as of September 30, 2026.
• The effective tax rate was 22.8%.
• A conference call and audio webcast were hosted by CEO Robin Vince and CFO Dermot McDonogh on October 15, 2026.