How did the company's assets under custody and management perform?

Assets under custody and/or administration (AUC/A) experienced a significant 12% increase, reaching $59.4 trillion. Assets under management (AUM) grew by 6% to $2.1 trillion. Both increases were attributed to net client inflows, higher market values, and a favorable impact from the weaker U.S. dollar.

What is the company's capital position, specifically the CET1 ratio?

The CET1 ratio under the Standardized Approach was 11.0% at March 31, 2026, a decrease from 11.9% at December 31, 2025. This decrease was primarily attributed to higher risk-weighted assets driven by a single-day increase in overnight loan balances and increased client activity in securities lending and foreign exchange. Despite this slight decrease, the company maintained its 'well capitalized' status.

How much capital was returned to shareholders in Q1 2026?

The company returned $1.4 billion to common shareholders in the first quarter of 2026. This included $983 million in common share repurchases and $434 million in common stock dividends.

BK 10-Q Quarterly Report Q1 FY2026 — Revenue, Net Income, EPS

Q: What was the primary driver of the revenue growth in Q1 2026?

The primary driver of revenue growth was a 13% increase in total revenue, fueled by an 11% rise in fee revenue and an 18% increase in net interest income. Fee revenue benefited from higher client activity, net new business, improved market values, and favorable foreign exchange impacts. Net interest income was boosted by the reinvestment of investment securities at higher yields and overall balance sheet growth.

Summary

The Bank of New York Mellon Corporation (BK) reported a strong first quarter of 2026, with net income applicable to common shareholders of $1.56 billion, or $2.24 per diluted share, a significant increase from $1.15 billion, or $1.58 per diluted share, in the first quarter of 2025. Excluding notable items, adjusted net income was $1.57 billion, or $2.25 per diluted share, also demonstrating robust year-over-year growth. This performance was driven by a 13% increase in total revenue, primarily due to a 11% rise in fee revenue and an 18% increase in net interest income. Fee revenue benefited from higher client activity, net new business, improved market values, and favorable foreign exchange impacts, while net interest income was boosted by higher yields on reinvested securities and balance sheet growth. The company's key metrics also showed positive momentum. Assets under custody and/or administration (AUC/A) grew by 12% to $59.4 trillion, and assets under management (AUM) increased by 6% to $2.1 trillion. These increases reflect strong client inflows, higher market valuations, and the positive impact of a weaker US dollar. The company also returned $1.4 billion to shareholders through repurchases and dividends, underscoring its commitment to capital return. Despite a slight decrease in CET1 ratio to 11.0% from 11.9% due to higher risk-weighted assets, BNY Mellon maintained its 'well capitalized' status, demonstrating a solid capital and liquidity position.

Key Highlights

1Net income applicable to common shareholders increased by 36% year-over-year to $1.56 billion.
2Total revenue grew by 13% to $5.41 billion, driven by strong performance in fee revenue and net interest income.
3Assets under custody and/or administration (AUC/A) increased by 12% to $59.4 trillion.
4Assets under management (AUM) rose by 6% to $2.1 trillion.
5The company returned $1.4 billion to common shareholders via share repurchases ($983 million) and dividends ($434 million).
6Net interest income saw an 18% increase, primarily due to higher yields on investment securities and balance sheet growth.
7The CET1 ratio stood at 11.0%, maintaining a strong capital position despite a slight decrease from the prior quarter.

Bank of New York Mellon Corp Quarterly Report for Q1 Ended Mar 31, 2026

Summary

Key Highlights

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