10-QPeriod: Q1 FY2025

Bank of New York Mellon Corp Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 2, 2025For Securities:BKBK-PKBNYBNY-PK

Summary

Bank of New York Mellon Corporation (BK) reported a solid first quarter for 2025, with net income applicable to common shareholders of $1,149 million, or $1.58 per diluted common share. Excluding notable items, adjusted net income was $1,148 million, or $1.58 per diluted common share, demonstrating stable operational performance year-over-year. Total revenue saw a healthy 6% increase, primarily driven by a 3% rise in fee revenue and a significant 11% increase in net interest income, benefiting from higher yields on investment securities. This growth was supported by a 9% increase in assets under custody and/or administration (AUC/A) to $53.1 trillion, although assets under management (AUM) remained flat at $2.0 trillion due to net outflows offsetting market value gains.

Financial Highlights

37 data points
Beta

Net Income

$1.22B

EPS (Diluted)

$1.58

Total Assets

$440.69B

Cash & Equivalents

$8.41B

Free Cash Flow

$92.00M

Financial Statements
Beta
Net Income$1.22B
EPS (Basic)$1.59
EPS (Diluted)$1.58
Shares Outstanding (Basic)720.95M
Shares Outstanding (Diluted)727.40M

Key Highlights

  • 1Net income applicable to common shareholders was $1,149 million ($1.58 per diluted share) in Q1 2025, compared to $953 million ($1.25 per diluted share) in Q1 2024.
  • 2Total revenue increased by 6% year-over-year, driven by a 3% rise in fee revenue and an 11% increase in net interest income.
  • 3Assets under custody and/or administration (AUC/A) grew 9% to $53.1 trillion, while assets under management (AUM) were flat at $2.0 trillion.
  • 4Provision for credit losses was $18 million, primarily due to increased reserves for commercial real estate exposure.
  • 5Noninterest expense rose 2% year-over-year, attributed to higher investments and employee merit increases, partially offset by efficiency savings.
  • 6Common equity Tier 1 (CET1) ratio under the Standardized Approach improved to 11.5% from 11.2% at year-end 2024.
  • 7The company returned $1.1 billion to common shareholders through dividends and share repurchases ($746 million in repurchases).

Frequently Asked Questions

BNY Mellon reported a net income applicable to common shareholders of $1,149 million, or $1.58 per diluted common share, in the first quarter of 2025. This represents a significant increase from the $953 million ($1.25 per diluted share) reported in the first quarter of 2024. Total revenue grew by 6% year-over-year, driven by strong performance in both fee revenue and net interest income.

Assets under custody and/or administration (AUC/A) saw robust growth, increasing by 9% to $53.1 trillion, reflecting client inflows, higher market values, and net new business. However, assets under management (AUM) remained flat at $2.0 trillion, as higher market values were offset by cumulative net outflows.

Net interest income increased by 11% compared to the first quarter of 2024, primarily due to the reinvestment of maturing investment securities at higher yields. This was partially offset by changes in deposit mix. The net interest margin also improved by 11 basis points year-over-year.

The company maintained strong capital ratios, with a CET1 ratio of 11.5% under the Standardized Approach at March 31, 2025. The Tier 1 leverage ratio also improved to 6.2%. BNY Mellon actively returned capital to shareholders, repurchasing $746 million of common stock and paying $746 million in dividends during the quarter. Available funds, a key liquidity measure, increased to $160.9 billion, representing 37% of total assets.

Total noninterest expense increased by 2% year-over-year, primarily due to higher investments and employee merit increases, with efficiency savings partially offsetting these costs. The provision for credit losses was $18 million, mainly driven by increased reserves for commercial real estate exposure. The allowance for loan losses as a percentage of total loans remained stable at 0.41%.