How strong were BNY's 2Q25 results relative to last year?

Results were strong. Total revenue grew 9% to $5.03 billion, pre-tax margin reached 37% (up from 33%), and diluted EPS rose 27% to $1.93. Expenses grew only 4%, which drove significant positive operating leverage.

What drove the increase in net interest income?

Net interest income rose 17% YoY to $1.20 billion, mainly because maturing investment securities were reinvested at higher yields and the balance sheet grew. Changes in deposit mix partially offset these gains.

Are BNY's capital levels and shareholder returns healthy?

Yes. The CET1 ratio was steady at 11.5%, and the Tier 1 leverage ratio of 6.1% was down 17 basis points sequentially. BNY returned $1.2 billion to common shareholders in the quarter and has a 92% year-to-date payout ratio. It also declared a 13% increase to its quarterly common dividend for 3Q25.

Were there any one-time items that affected the quarter?

Few notable items affected 2Q25. The 1Q25 results included a $40 million disposal gain, which did not recur. In 2Q25, the adjusted EPS of $1.94 was only one cent above GAAP EPS, with severance expense offset by a litigation reserve release and FDIC assessment adjustments.

What were the main risks or soft spots in the quarter?

AUM grew only 3% YoY despite market gains, because cumulative net outflows partly offset higher market values. Wealth management pre-tax income was lower on higher expenses and lower net interest income, and the investment management fee line declined slightly year-over-year.

BK 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed July 15, 2025. Cited figures are marked; the original filing is the authoritative source.

BNY (The Bank of New York Mellon Corp.) reported strong second-quarter 2025 results on July 15, 2025.

Total revenue rose 9% year-over-year to $5.03 billion^a, the first quarter above $5 billion, while noninterest expense rose only 4% to $3.21 billion, producing 533... more precisely, 633 basis points of GAAP operating leverage and a 37% pre-tax margin. Diluted EPS was $1.93, up 27% year-over-year (or $1.94 excluding notable items, up 28%). Net income applicable to common shareholders was $1.39 billion.

Return on tangible common equity (ROTCE, non-GAAP) was 27.8%^b, and ROE was 14.7%, both up meaningfully from 2Q24. Growth was broad-based. Fee revenue increased 7% on net new business, higher market values, client activity and FX revenue, aided by a weaker U.S. dollar.

Net interest income rose 17% to $1.20 billion^c as maturing securities were reinvested at higher yields and the balance sheet grew, with average deposits up 5% to $300 billion. AUC/A rose 13% to $55.8 trillion, while AUM rose 3% to $2.1 trillion despite cumulative net outflows. The provision for credit losses was a $17 million benefit, driven by commercial real estate reserve releases.

Capital returns remained substantial: BNY returned $1.2 billion^d to common shareholders in the quarter ($346 million in dividends and $895 million in buybacks), for a 92% year-to-date payout ratio. The CET1 ratio held flat at 11.5%, while the Tier 1 leverage ratio fell 17 basis points sequentially to 6.1%.

Management declared a 13% increase in the quarterly common dividend for 3Q25 and updated its 2025 outlook. The filing also highlights that the 2Q25 results benefited from a $40 million disposal gain in 1Q25 that did not recur, and that notable items were minimal in the quarter.

02—Key points

Key Highlights

Total revenue of $5.03 billion, up 9% YoY and up 5% QoQ, the first quarter above $5 billion in BNY's history
Diluted EPS of $1.93, up 27% YoY; $1.94 excluding notable items (up 28%)
Pre-tax margin of 37% and 633 bps of GAAP operating leverage, versus 33% margin and 424 bps a year earlier
ROTCE of 27.8% (non-GAAP) and ROE of 14.7%, both materially higher YoY
Net interest income up 17% YoY to $1.20 billion, with NIM of 1.27%, reflecting reinvestment of securities at higher yields
Noninterest expense up only 4% YoY to $3.21 billion, showing continued positive operating leverage
Returned $1.2 billion to common shareholders in 2Q25 ($346M dividends, $895M buybacks); CET1 flat at 11.5%, Tier 1 leverage 6.1%; 13% dividend increase declared for 3Q25

03—Questions

Frequently Asked Questions

How strong were BNY's 2Q25 results relative to last year?
Results were strong. Total revenue grew 9% to $5.03 billion, pre-tax margin reached 37% (up from 33%), and diluted EPS rose 27% to $1.93. Expenses grew only 4%, which drove significant positive operating leverage.
What drove the increase in net interest income?
Net interest income rose 17% YoY to $1.20 billion, mainly because maturing investment securities were reinvested at higher yields and the balance sheet grew. Changes in deposit mix partially offset these gains.
Are BNY's capital levels and shareholder returns healthy?
Yes. The CET1 ratio was steady at 11.5%, and the Tier 1 leverage ratio of 6.1% was down 17 basis points sequentially. BNY returned $1.2 billion to common shareholders in the quarter and has a 92% year-to-date payout ratio. It also declared a 13% increase to its quarterly common dividend for 3Q25.
Were there any one-time items that affected the quarter?
Few notable items affected 2Q25. The 1Q25 results included a $40 million disposal gain, which did not recur. In 2Q25, the adjusted EPS of $1.94 was only one cent above GAAP EPS, with severance expense offset by a litigation reserve release and FDIC assessment adjustments.
What were the main risks or soft spots in the quarter?
AUM grew only 3% YoY despite market gains, because cumulative net outflows partly offset higher market values. Wealth management pre-tax income was lower on higher expenses and lower net interest income, and the investment management fee line declined slightly year-over-year.

04—Continue

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