How did BNY perform in the first quarter of 2026 compared with the prior year?

BNY reported total revenue of $5.4 billion, up 13% year-over-year, and noninterest expense of $3.4 billion, up 5%. Net income applicable to common shareholders rose 36% to $1.56 billion, and diluted EPS rose 42% to $2.24. The company reported roughly 325 basis points of GAAP operating leverage (about 211 basis points excluding notable items), though management's headline figure of over 800 basis points reflects its comparison of adjusted results.

Why did the CET1 ratio decline in the quarter, and is it a concern?

The CET1 ratio fell to 11.0% from 11.9% at year-end, even though CET1 capital was roughly flat at $21.1 billion. The decline was driven by a 14.6 billion increase in risk-weighted assets, mainly from a single-day jump in overnight loan balances on the last day of the quarter, along with higher agency securities lending and foreign exchange activity. Management attributes it largely to these temporary balance-sheet factors, but investors will want to see whether the ratio rebounds as those balances normalize, especially given the $10 billion buyback authorization.

What is the outlook for net interest income and deposits?

Net interest income rose 18% year-over-year to $1.37 billion, with net interest margin of 1.38%, up 8 basis points year-over-year and flat sequentially. Average deposits reached $318 billion, up 13% year-over-year. Management pointed to continued reinvestment of securities at higher yields as a tailwind, offset by deposit margin compression. The filing does not provide formal quantitative guidance, so sustainability depends on rate paths and deposit pricing.

Which business segments drove results, and which lagged?

Securities Services was the strongest contributor, with revenue of $2.68 billion up 17% year-over-year and a pre-tax margin of 39%. Market and Wealth Services grew revenue 11% to $1.89 billion with a 51% pre-tax margin. Investment and Wealth Management was weaker, with revenue of $825 million up 6% but pre-tax income of only $90 million and a margin of 11%, down from 17% in the prior quarter. The Other segment posted a pre-tax loss of $74 million, driven by net securities losses.

What are the main capital return highlights and what do they signal?

BNY returned $1.4 billion to common shareholders in the quarter, including $376 million in dividends and $983 million in share repurchases, for a total payout ratio of 87%. The board authorized a new $10 billion common share repurchase program. Quarterly cash dividends were $0.53 per share, unchanged from the prior quarter. The size of the repurchase program signals management confidence in capital generation, but the buyback pace relative to the CET1 ratio decline will be a key point to watch on future calls.

BK 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed April 16, 2026. Cited figures are marked; the original filing is the authoritative source.

BNY (The Bank of New York Mellon Corporation) reported a strong first quarter 2026, with record total revenue of $5.4 billion^a, up 13% year-over-year, and diluted EPS of $2.24, up 42%.

Management highlighted over 800 basis points of positive operating leverage (325 bps on a GAAP basis, 211 bps excluding notable items), a 37% pre-tax margin, and ROTCE of 29.3%. Fee revenue grew 11% to $3.8 billion^b, driven by client activity, higher market values, and a weaker U.S. dollar, while net interest income rose 18% to $1.37 billion on reinvestment of securities at higher yields and balance sheet growth. Noninterest expense rose 5% to $3.4 billion, and the provision for credit losses was a $7 million benefit.

Assets under custody and/or administration reached a record $59.4 trillion^c, up 12% year-over-year, while assets under management were $2.1 trillion, up 6%. Capital returns were substantial: BNY returned $1.4 billion to common shareholders in the quarter ($376 million in dividends and $983 million in buybacks), and the board authorized a new $10 billion share repurchase program. The CET1 ratio declined to 11.0% from 11.9% in the fourth quarter, mainly due to higher risk-weighted assets from a single-day spike in overnight loans at quarter-end and higher agency securities lending and FX activity.

Management described the decline as tied to temporary balance-sheet effects, and the Tier 1 leverage ratio was steady at 6.0%. Tier 1 capital rose to $26.4 billion^d, driven by preferred stock issuance. The spot balance sheet at March 31 was temporarily elevated by delayed payment processing, which inflated deposits and reserve balances.

For investors, the quarter shows broad-based momentum across Securities Services and Market and Wealth Services, with the Investment and Wealth Management segment as the relative laggard (pre-tax margin of 11%, down from 17% sequentially). Key items to monitor include the CET1 trajectory against the new buyback, sustainability of net interest income as deposit margins compress, and the role of AI-driven efficiency in future expense growth. Figures in this summary are as reported in the earnings release and financial supplement, and the 8-K itself is a transmittal document incorporating those exhibits.

02—Key points

Key Highlights

Record total revenue of $5.4 billion, up 13% year-over-year and 4% sequentially; fee and other revenue of $4.0 billion, up 11% year-over-year.
Diluted EPS of $2.24, up 42% year-over-year (adjusted EPS $2.25 excluding notable items); net income applicable to common shareholders of $1.56 billion, up 36%.
Pre-tax operating margin of 37% (38% adjusted), with ROTCE of 29.3% and ROE of 16.1%, both improved year-over-year.
Net interest income of $1.37 billion, up 18% year-over-year, driven by reinvestment of securities at higher yields and balance sheet growth, partly offset by deposit margin compression.
CET1 ratio fell to 11.0% from 11.9% in Q4 2025, mainly due to a temporary increase in risk-weighted assets from quarter-end overnight loans; Tier 1 leverage ratio held at 6.0%.
Returned $1.4 billion to common shareholders in the quarter and authorized a new $10 billion share repurchase program; total payout ratio of 87%.
AUC/A reached a record $59.4 trillion, up 12% year-over-year, while AUM of $2.1 trillion rose 6% year-over-year but declined 2% sequentially on net outflows.

03—Questions

Frequently Asked Questions

How did BNY perform in the first quarter of 2026 compared with the prior year?
BNY reported total revenue of $5.4 billion, up 13% year-over-year, and noninterest expense of $3.4 billion, up 5%. Net income applicable to common shareholders rose 36% to $1.56 billion, and diluted EPS rose 42% to $2.24. The company reported roughly 325 basis points of GAAP operating leverage (about 211 basis points excluding notable items), though management's headline figure of over 800 basis points reflects its comparison of adjusted results.
Why did the CET1 ratio decline in the quarter, and is it a concern?
The CET1 ratio fell to 11.0% from 11.9% at year-end, even though CET1 capital was roughly flat at $21.1 billion. The decline was driven by a 14.6 billion increase in risk-weighted assets, mainly from a single-day jump in overnight loan balances on the last day of the quarter, along with higher agency securities lending and foreign exchange activity. Management attributes it largely to these temporary balance-sheet factors, but investors will want to see whether the ratio rebounds as those balances normalize, especially given the $10 billion buyback authorization.
What is the outlook for net interest income and deposits?
Net interest income rose 18% year-over-year to $1.37 billion, with net interest margin of 1.38%, up 8 basis points year-over-year and flat sequentially. Average deposits reached $318 billion, up 13% year-over-year. Management pointed to continued reinvestment of securities at higher yields as a tailwind, offset by deposit margin compression. The filing does not provide formal quantitative guidance, so sustainability depends on rate paths and deposit pricing.
Which business segments drove results, and which lagged?
Securities Services was the strongest contributor, with revenue of $2.68 billion up 17% year-over-year and a pre-tax margin of 39%. Market and Wealth Services grew revenue 11% to $1.89 billion with a 51% pre-tax margin. Investment and Wealth Management was weaker, with revenue of $825 million up 6% but pre-tax income of only $90 million and a margin of 11%, down from 17% in the prior quarter. The Other segment posted a pre-tax loss of $74 million, driven by net securities losses.
What are the main capital return highlights and what do they signal?
BNY returned $1.4 billion to common shareholders in the quarter, including $376 million in dividends and $983 million in share repurchases, for a total payout ratio of 87%. The board authorized a new $10 billion common share repurchase program. Quarterly cash dividends were $0.53 per share, unchanged from the prior quarter. The size of the repurchase program signals management confidence in capital generation, but the buyback pace relative to the CET1 ratio decline will be a key point to watch on future calls.

04—Continue

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