What drove BNY's strong second-quarter 2026 revenue growth?

Revenue growth of 13% year-over-year was broad-based. Investment services fees rose 15%, driven by higher Issuer Services (Corporate Trust) fees and Asset Servicing activity, market values and client activity. Net interest income rose 20% on reinvestment of securities at higher yields and balance sheet growth. Management also cited record sales and net new business.

Is BNY's expense growth sustainable relative to revenue growth?

Noninterest expense rose 7% year-over-year, well below the 13% revenue increase, producing 419 bps of operating leverage. Management attributes much of the increase to revenue-related expenses, with the remainder reflecting investments and salary increases partly offset by efficiency savings. The company is tracking toward roughly $500 million of incremental investments and $450 million of efficiency savings in 2026, and has guided to expense growth of 6-7% for the year.

What are the key risks or caveats investors should consider?

Several figures are preliminary and may change in the 10-Q, including AUC/A, AUM and regulatory capital ratios. Sequential comparisons are affected by 1Q26 items such as renewable energy and other investment gains, and by an elevated March 31 spot balance sheet. Forward-looking guidance depends on market levels, interest rates, client activity and the reinvestment yield environment, and the filing references geopolitical risks in the Middle East and inflation.

What does the dividend increase and capital return program signal?

BNY declared a 19% increase in its quarterly common dividend for 3Q26, to a level implying roughly $0.63 per share from $0.53. Combined with $1.1 billion of buybacks in the quarter and an updated authorization of $10 billion added in April 2026, this signals management's confidence in earnings durability. The total payout ratio of 87% year-to-date is high, so continued buybacks at this pace would depend on sustained earnings and capital ratios.

BK 8-K: Earnings & Results & Regulation FD

Q: How strong is BNY's capital position after the quarter?

The CET1 ratio was 11.0%, flat sequentially but down from 11.5% a year ago, as higher risk-weighted assets offset capital generation. The Tier 1 leverage ratio fell to 5.9%, reflecting higher average assets and a preferred stock redemption. Both June 30 regulatory ratios are preliminary. Liquidity remained solid, with an average LCR of 111% and NSFR of 130%.

01—Abstract

Summary

Summary of the 8-K filed July 15, 2026. Cited figures are marked; the original filing is the authoritative source.

BNY reported strong second-quarter 2026 results, with total revenue rising 13% year-over-year to a record $5.7 billion^a and diluted EPS of $2.45, up 27%.

Growth was broad-based across Securities Services, Market and Wealth Services, and Investment and Wealth Management. Pre-tax operating margin expanded to 39.8%^b and ROTCE reached 31.3%, while noninterest expense rose a more modest 7%, producing 419 basis points of operating leverage (401 bps excluding notable items). Net interest income grew 20% year-over-year on reinvestment of securities at higher yields, and fee revenue rose 11%, driven by net new business, higher market values and client activity.

Capital returns were substantial: BNY returned $1.5 billion^c to common shareholders in the quarter ($371 million in dividends and $1.1 billion in buybacks), for a year-to-date payout ratio of 87%. The company also declared a 19% increase in its quarterly common dividend for 3Q26. Capital ratios moderated slightly: the CET1 ratio was flat sequentially at 11.0% (down from 11.5% a year ago), and the Tier 1 leverage ratio fell to 5.9%, reflecting higher average assets and a preferred stock redemption.

Management updated its 2026 outlook to call for revenue growth of 10-11%^d and expense growth of 6-7%, with operating leverage of roughly 400 bps. The filing is a Form 8-K furnishing the earnings release, financial supplement and presentation under Items 2.02 and 7.01.

Preliminary metrics (including June 30, 2026 AUC/A, AUM and regulatory capital ratios) remain subject to change until the 10-Q is filed. Investors should note that quarter-end spot balance sheet figures and the 1Q26 results include some one-time or elevated items, and that the 2Q26 results benefited from higher market values and strong net interest income.

02—Key points

Key Highlights

Record total revenue of $5.7 billion, up 13% year-over-year and 5% sequentially; fee revenue up 11% to $4.0 billion
Diluted EPS of $2.45, up 27% year-over-year (9% sequentially); adjusted EPS of $2.46 excluding notable items
Pre-tax operating margin of 39.8% and ROTCE of 31.3%, both up meaningfully from 36.6% and 27.8% a year ago
Net interest income up 20% year-over-year to $1.45 billion, with net interest margin widening to 1.45%
Returned $1.5 billion to common shareholders in 2Q26; year-to-date payout ratio of 87%; 19% increase in quarterly dividend declared for 3Q26
CET1 ratio steady at 11.0% sequentially but down from 11.5% a year ago; Tier 1 leverage ratio declined to 5.9%
Updated 2026 outlook: revenue growth of 10-11%, expense growth of 6-7%, and roughly 400 bps of operating leverage

03—Questions

Frequently Asked Questions

What drove BNY's strong second-quarter 2026 revenue growth?
Revenue growth of 13% year-over-year was broad-based. Investment services fees rose 15%, driven by higher Issuer Services (Corporate Trust) fees and Asset Servicing activity, market values and client activity. Net interest income rose 20% on reinvestment of securities at higher yields and balance sheet growth. Management also cited record sales and net new business.
Is BNY's expense growth sustainable relative to revenue growth?
Noninterest expense rose 7% year-over-year, well below the 13% revenue increase, producing 419 bps of operating leverage. Management attributes much of the increase to revenue-related expenses, with the remainder reflecting investments and salary increases partly offset by efficiency savings. The company is tracking toward roughly $500 million of incremental investments and $450 million of efficiency savings in 2026, and has guided to expense growth of 6-7% for the year.
How strong is BNY's capital position after the quarter?
The CET1 ratio was 11.0%, flat sequentially but down from 11.5% a year ago, as higher risk-weighted assets offset capital generation. The Tier 1 leverage ratio fell to 5.9%, reflecting higher average assets and a preferred stock redemption. Both June 30 regulatory ratios are preliminary. Liquidity remained solid, with an average LCR of 111% and NSFR of 130%.
What are the key risks or caveats investors should consider?
Several figures are preliminary and may change in the 10-Q, including AUC/A, AUM and regulatory capital ratios. Sequential comparisons are affected by 1Q26 items such as renewable energy and other investment gains, and by an elevated March 31 spot balance sheet. Forward-looking guidance depends on market levels, interest rates, client activity and the reinvestment yield environment, and the filing references geopolitical risks in the Middle East and inflation.
What does the dividend increase and capital return program signal?
BNY declared a 19% increase in its quarterly common dividend for 3Q26, to a level implying roughly $0.63 per share from $0.53. Combined with $1.1 billion of buybacks in the quarter and an updated authorization of $10 billion added in April 2026, this signals management's confidence in earnings durability. The total payout ratio of 87% year-to-date is high, so continued buybacks at this pace would depend on sustained earnings and capital ratios.

04—Continue

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