01—Abstract
Summary
Summary of the 10-K filed February 25, 2026. Cited figures are marked; the original filing is the authoritative source.
The Bank of New York Mellon Corporation (BNY, NYSE: BK) closed 2025 with strong results: net income applicable to common shareholders rose 22% to $5.3 billiona, or $7.40 per diluted share (up from $5.80), and total revenue grew 8% to $20.1 billion.
Fee and other revenue increased 6% on higher investment services fees, client activity, and market values, while net interest income rose 15% to $4.9 billionb on the reinvestment of maturing securities at higher yields. Excluding notable items, diluted EPS was $7.50 (Non-GAAP), and the pre-tax operating margin improved to 35% from 31%. Return on common equity reached 13.9% and return on tangible common equity 26.1%.
Assets under custody and/or administration grew 14% to $59.3 trillionc and assets under management rose 7% to $2.2 trillion, though AUM reflected $93 billion of long-term net outflows offset by market and currency gains. Noninterest expense rose 3% to $13.1 billion, driven by investments, merit increases and revenue-related costs, partly offset by efficiency savings. Full-time employees fell 7% to about 48,100.
Capital and liquidity remained strong. The CET1 ratio improved to 11.9% (from 11.2%), and the Tier 1 leverage ratio rose to 6.0%. BNY returned roughly $5.0 billiond to shareholders in 2025 through $3.5 billion of buybacks and $1.4 billion of common dividends, and the quarterly common dividend was raised 13% to $0.53.
The company also issued $1.5 billion of new preferred stock and redeemed $1.0 billion of Series G preferred. Key risks highlighted include operational and cyber risk, AI-related risk, regulatory change, rate sensitivity, and concentration in financial-institution exposures, with a $700 million reasonably possible litigation loss range disclosed.
02—Key points
Key Highlights
- Revenue and earnings growth: Total revenue rose 8% to $20.1 billion and diluted EPS rose 28% to $7.40 ($7.50 excluding notable items), with net income applicable to common shareholders of $5.3 billion.
- Fee-driven franchise: Fee revenue was 72% of total revenue, with investment services fees up 8% to $10.2 billion on client activity, net new business and higher market values.
- Net interest income recovery: NII increased 15% to $4.9 billion and net interest margin expanded 11 basis points to 1.33%, reflecting reinvestment at higher yields.
- Record scale: AUC/A reached $59.3 trillion (up 14%) and AUM reached $2.2 trillion (up 7%), though long-term strategies recorded $93 billion of net outflows.
- Strong capital position: CET1 ratio of 11.9% (vs. 11.2%), Tier 1 leverage of 6.0%, and BNY and its U.S. bank subsidiaries remain well capitalized.
- Shareholder returns: $3.5 billion of share repurchases (36.8 million shares at $96.12 average) and $1.4 billion of common dividends; quarterly dividend increased 13% to $0.53.
- Cost discipline and risk watch items: Noninterest expense rose 3% to $13.1 billion, while the 10-K flags AI, cybersecurity, regulatory change and a $700 million reasonably possible litigation range as key risks.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 25, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $20.08B$18.62B | +7.8% |
| Net Income | $5.55B$4.53B | +22.5% |
| EPS (Basic) | $7.47$5.84 | +27.9% |
| EPS (Diluted) | $7.40$5.80 | +27.6% |
| Shares Outstanding (Basic) | 710.18M742.59M | −4.4% |
| Shares Outstanding (Diluted) | 716.72M748.10M | −4.2% |
05—Questions
Frequently Asked Questions
How did BNY's profitability change in 2025?
Net income applicable to common shareholders increased 22% to $5.3 billion, and diluted EPS rose to $7.40 from $5.80. Return on common shareholders' equity improved to 13.9% from 11.9%, and the pre-tax operating margin rose to 35% from 31%. Notable items (disposal gains, severance, litigation reserves and FDIC special assessment adjustments) had a net negative impact of about $0.10 per share; excluding them, adjusted diluted EPS was $7.50.
What drove revenue growth and what were the weak spots?
Growth came mainly from investment services fees (+8%), net interest income (+15%) and disposal gains. Investment management and performance fees fell 2% due to the mix of AUM flows and a rebate adjustment, and Investment and Wealth Management pre-tax income fell 10% to $543 million on lower revenue. Net long-term strategy outflows of $93 billion weighed on that segment.
How strong is BNY's capital and liquidity position?
BNY reported a Standardized CET1 ratio of 11.9%, a Tier 1 capital ratio of 14.6%, a total capital ratio of 15.4%, and an SLR of 6.7%. The average consolidated liquidity coverage ratio was 112% and the NSFR was 130% for Q4 2025, both above regulatory minimums. The Federal Reserve kept BNY's stress capital buffer at the 2.5% floor.
How is BNY returning capital to shareholders and what changed in its preferred stock?
In 2025 BNY repurchased $3.5 billion of common stock and paid $1.4 billion in common dividends, with the quarterly dividend increased to $0.53 from $0.47. The company issued new Series J, K and L preferred stock totaling $1.5 billion and redeemed its $1.0 billion Series G preferred. As of year-end, $1.8 billion remained under the repurchase authorizations.
What are the main risks investors should monitor?
The 10-K highlights operational and technology failures, cybersecurity incidents, the growing use of artificial intelligence, regulatory and enforcement actions, sensitivity to interest rates and market volatility, and concentrated credit exposure to financial institutions ($43.6 billion). It also discloses up to $700 million of reasonably possible litigation losses above accruals, including Brazilian Postalis, Stanford-related and Russia-related matters, and notes the Parent's reliance on subsidiary dividends and IHC support.
06—Continue