BNY's Third-Quarter EPS Rose 24% To $2.34, But Fell From $2.45 In The Second Quarter
Revenue grew 12% from a year earlier while the tier 1 leverage ratio slipped to 5.7% from 5.9% after $1.4 billion went to shareholders.
Bank of New York Mellon's third-quarter revenue rose 12% from a year earlier to $5.7 billion, and diluted earnings per share climbed 24% to $2.34, according to an earnings release attached to an 8-K filed Thursday. Profit was lower than in the second quarter, when earnings per share were $2.45.
The numbers against last year and last quarter
Net income applicable to common shareholders was $1.6 billion ($1,608 million), up 20% from a year earlier and down 5% from the second quarter. Total revenue was little changed from the second quarter's $5,698 million.
Noninterest expense rose 8% from a year earlier to $3.5 billion. The pre-tax operating margin was 38.5%, against 36.4% a year earlier and 39.8% in the second quarter. Return on tangible common equity, an adjusted measure, was 29.0%.
CEO Robin Vince said the bank delivered "strong results" with "broad-based growth across our platforms."
Net interest income, the gap between what the bank earns and pays on money, grew 15% from a year earlier to $1,423 million but fell 2% from the second quarter.
Where the growth came from
Securities Services revenue rose 15% from a year earlier to $2,820 million. Issuer Services fees within it were up 43% to $449 million, and the release attributes the year-over-year gain mainly to higher Corporate Trust fees.
Market and Wealth Services revenue rose 12% to $1,984 million. Investment and Wealth Management revenue rose 4% to $857 million.
Assets under custody or administration reached a preliminary $63.4 trillion, up 10% from a year earlier.
Payouts and capital ratios
BNY returned $1.4 billion to common shareholders: $436 million of dividends and $937 million of share repurchases. The total payout ratio was 86% for the year to date.
The tier 1 leverage ratio, a measure of core capital against average assets, was 5.7%, down from 5.9% in the second quarter and 6.1% a year earlier. The common equity tier 1 ratio was 10.9%, against 11.0% in the second quarter and 11.7% a year earlier.
The release says CET1 capital fell mainly because of capital returned through buybacks and dividends and a decline in accumulated other comprehensive income, partly offset by earnings.
What to watch
The ratios are preliminary. BNY said preliminary business metrics and regulatory capital ratios are subject to change, possibly materially, as it completes its quarterly report on Form 10-Q for the period ended Sept. 30, 2026.
Tier 1 capital fell $1,094 million from the second quarter, and the company's own explanation includes a preferred stock redemption, net of an issuance.
Sources
- 8-K Filing — Bank of New York Mellon Corp (BNY) — SEC EDGAR
- Exhibit ex991_earningsreleasex3q26.htm — Bank of New York Mellon Corp 8-K exhibit — SEC EDGAR
- Exhibit ex992_financialsupplementx.htm — Bank of New York Mellon Corp 8-K exhibit — SEC EDGAR
- Exhibit ex993_quarterlyupdatepre.htm — Bank of New York Mellon Corp 8-K exhibit — SEC EDGAR
- Could Analysts’ Tweaked Fair Value Views Reframe Bank of New York Mellon’s Efficiency Story (BNY)? — Yahoo Finance
