01—Abstract
Summary
Summary of the 8-K filed October 16, 2025. Cited figures are marked; the original filing is the authoritative source.
BNY (The Bank of New York Mellon Corporation) reported third-quarter 2025 results on October 16, 2025, delivering record quarterly revenue of $5.1 billiona, up 9% year-over-year, and diluted EPS of $1.88, up 25%.
Pre-tax operating margin was 36% and ROTCE was 25.6%. Noninterest expense rose 4% to $3.2 billionb, producing 493 basis points of year-over-year operating leverage (11 bps sequentially on a GAAP basis). Net interest income climbed 18% year-over-year to $1.24 billion, driven by reinvestment of maturing securities at higher yields, while fee revenue grew 7% to $3.6 billion, supported by higher client activity, market values, and a weaker U.S. dollar.
On a notable-items-adjusted basis, EPS was $1.91c (up 26% year-over-year), and the disposal gain, severance, litigation reserves and FDIC special assessment items were small relative to the overall result. Asset servicing metrics were strong, with assets under custody and/or administration (AUC/A) reaching a record $57.8 trillion (up 11% year-over-year, preliminary), while assets under management (AUM) were flat at $2.1 trillion as market gains offset cumulative net outflows. Average deposits of $299 billion were up 5% year-over-year but flat sequentially.
Capital position remained solid, with CET1 at 11.7% (up from 11.5% sequentially), a Tier 1 leverage ratio of 6.1%, and $1.2 billiond returned to common shareholders in the quarter ($381 million in dividends and $849 million in buybacks). Management highlighted progress on its new commercial model and platforms operating model. Regulatory capital and liquidity ratios are preliminary, and the company noted that preliminary business metrics may change when its 10-Q is filed.
02—Key points
Key Highlights
- Record quarterly total revenue of $5.1 billion, up 9% year-over-year, with fee revenue up 7% to $3.6 billion and net interest income up 18% to $1.2 billion.
- Diluted EPS of $1.88, up 25% year-over-year (down 3% sequentially); adjusted EPS excluding notable items was $1.91, up 26% year-over-year.
- Pre-tax operating margin of 36% and ROTCE of 25.6%, with ROE of 13.7%; operating leverage of 493 bps year-over-year.
- Noninterest expense rose 4% to $3.2 billion, driven by investments, merit increases and revenue-related costs, partly offset by efficiency savings.
- AUC/A reached a record $57.8 trillion (up 11% year-over-year) while AUM was flat at $2.1 trillion, reflecting market gains offset by cumulative net outflows.
- CET1 ratio of 11.7% (up 22 bps sequentially) and Tier 1 leverage ratio of 6.1%; $1.2 billion returned to shareholders via $381 million in dividends and $849 million in buybacks.
- Net interest margin expanded to 1.31% (up 15 bps year-over-year) on reinvestment of maturing securities at higher yields; provision for credit losses was a $7 million benefit.
03—Questions
Frequently Asked Questions
How did BNY's third-quarter 2025 earnings compare with the prior year?
Diluted EPS rose 25% to $1.88 from $1.50, and net income applicable to common shareholders grew 21% to $1.34 billion. Total revenue increased 9% to $5.1 billion, while noninterest expense rose 4% to $3.2 billion, yielding strong positive operating leverage.
What drove the growth in revenue and net interest income?
Net interest income increased 18% year-over-year, primarily from reinvesting maturing investment securities at higher yields and balance sheet growth, partly offset by deposit mix changes. Fee revenue rose 7%, supported by net new business, higher client activity and market values, and a weaker U.S. dollar.
Were there any one-time items affecting the quarter's results?
Yes. GAAP results included a $12 million disposal gain (about $0.01 per share), $50 million of severance expense (about $0.05 per share), $3 million of litigation reserves and a $14 million FDIC special assessment benefit. Net, these notable items reduced diluted EPS by about $0.03, so adjusted EPS was $1.91.
How is BNY's capital position and shareholder return?
The CET1 ratio improved to 11.7% from 11.5% sequentially, and the Tier 1 leverage ratio held at 6.1%. BNY returned $1.2 billion to common shareholders in the quarter, with a year-to-date total payout ratio of 92%. Regulatory ratios for September 30, 2025 are preliminary.
What should investors watch going forward?
Key factors include whether AUM stabilizes after cumulative net outflows, the sustainability of net interest income as securities continue to reprice at higher yields, expense discipline as investments continue, and progress on the new commercial model and platforms operating model. Investors should also monitor final regulatory ratios and business metrics when the Form 10-Q is filed, as preliminary figures may change.
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