How did BNY's third-quarter 2026 earnings compare with prior periods?

Diluted EPS was $2.34, up 24% from $1.88 a year earlier but down 4% from $2.45 in the second quarter of 2026. Net income applicable to common shareholders was $1.6 billion, up 20% year-over-year and down 5% sequentially. Year-to-date diluted EPS was $7.02, up 30% from $5.39.

Is BNY's capital position weakening?

Capital ratios declined modestly. The CET1 ratio was 10.9%, versus 11.0% in the prior quarter and 11.7% a year earlier, and the Tier 1 leverage ratio was 5.7%, versus 5.9% sequentially and 6.1% a year earlier. Management attributed the decline mainly to capital returns, a drop in accumulated other comprehensive income, and a preferred stock redemption, partly offset by earnings. The regulatory ratios for September 30, 2026 are preliminary and may change when the 10-Q is filed.

What drove the growth in net interest income?

Net interest income rose 15% year-over-year to $1.4 billion, mainly from reinvesting securities at higher yields and balance sheet growth, partly offset by deposit margin compression. Sequentially, net interest income fell 2% as deposit balances declined, though reinvestment at higher yields partly offset the drop. Net interest margin was 1.43%, up 12 basis points year-over-year but down 2 basis points sequentially.

Why did margins decline from the prior quarter?

Pre-tax operating margin fell to 38.5% from 39.8% in the second quarter. Total revenue was flat sequentially at $5.7 billion, while noninterest expense rose 1% to $3.5 billion. Investment and other revenue declined sequentially, and the company cited higher severance expense and revenue-related costs. Year-over-year, margin still expanded from 36.4%.

What are the key operational metrics investors should watch?

Assets under custody and/or administration reached $63.4 trillion, up 10% year-over-year, and assets under management were $2.2 trillion, up 2% but with cumulative net outflows. Average deposits were $311 billion. The filing also notes that the Securities Services and Market and Wealth Services segments drove much of the revenue growth, with Clearance and Collateral Management and Issuer Services posting strong year-over-year gains.

BK 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

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

BNY (The Bank of New York Mellon Corporation) reported third-quarter 2026 results that showed solid top-line and earnings growth alongside some pressure on capital and margins.

Total revenue rose 12% year-over-year to $5.7 billion^a, fee revenue grew 12% to $4.1 billion, and net interest income increased 15% to $1.4 billion, driven by reinvestment of securities at higher yields and balance sheet growth. Diluted EPS was $2.34, up 24% year-over-year, though down 4% sequentially. Pre-tax operating margin was 38.5% and ROTCE was 29.0%, both lower sequentially but strong in absolute terms.

Noninterest expense rose 8% to $3.5 billion^b, with management attributing most of the increase to revenue-related costs. Adjusted diluted EPS excluding notable items was $2.37. Capital ratios declined during the quarter.

The CET1 ratio fell to 10.9% from 11.0% sequentially and 11.7% a year earlier, and the Tier 1 leverage ratio fell to 5.7% from 5.9% sequentially and 6.1% a year earlier. Management attributed the decline to capital returns of $1.4 billion^c (including $937 million of buybacks and $436 million of dividends), a decline in accumulated other comprehensive income, and a preferred stock redemption. Average deposits were $311 billion, up 4% year-over-year but down 1% sequentially.

Assets under custody and/or administration reached a record $63.4 trillion^d, up 10% year-over-year. The filing is a routine earnings disclosure under Items 2.02 and 7.01, with the earnings release and financial supplement furnished as exhibits.

The 8-K itself contains no new material agreements or events beyond the quarterly results and the associated conference call on October 15, 2026. Investors will likely focus on the sequential softening in margins and capital ratios, the sustainability of net interest income gains as deposit balances decline, and the pace of capital return relative to capital generation.

02—Key points

Key Highlights

Diluted EPS of $2.34, up 24% year-over-year but down 4% sequentially; adjusted diluted EPS excluding notable items was $2.37.
Total revenue of $5.7 billion rose 12% year-over-year, with fee revenue up 12% to $4.1 billion and net interest income up 15% to $1.4 billion.
Pre-tax operating margin of 38.5% (down from 39.8% in 2Q26) and ROTCE of 29.0% (down from 31.3%), reflecting 389 bps of year-over-year operating leverage.
CET1 ratio declined to 10.9% from 11.0% sequentially and 11.7% a year ago; Tier 1 leverage ratio fell to 5.7% from 5.9% sequentially.
Returned $1.4 billion to common shareholders, including $937 million in buybacks and $436 million in dividends; year-to-date payout ratio of 86%.
Average deposits of $311 billion rose 4% year-over-year but fell 1% sequentially; assets under custody and/or administration reached a record $63.4 trillion, up 10%.
Noninterest expense increased 8% to $3.5 billion, with management attributing over three-quarters of the increase to revenue-related expenses.

03—Questions

Frequently Asked Questions

How did BNY's third-quarter 2026 earnings compare with prior periods?
Diluted EPS was $2.34, up 24% from $1.88 a year earlier but down 4% from $2.45 in the second quarter of 2026. Net income applicable to common shareholders was $1.6 billion, up 20% year-over-year and down 5% sequentially. Year-to-date diluted EPS was $7.02, up 30% from $5.39.
Is BNY's capital position weakening?
Capital ratios declined modestly. The CET1 ratio was 10.9%, versus 11.0% in the prior quarter and 11.7% a year earlier, and the Tier 1 leverage ratio was 5.7%, versus 5.9% sequentially and 6.1% a year earlier. Management attributed the decline mainly to capital returns, a drop in accumulated other comprehensive income, and a preferred stock redemption, partly offset by earnings. The regulatory ratios for September 30, 2026 are preliminary and may change when the 10-Q is filed.
What drove the growth in net interest income?
Net interest income rose 15% year-over-year to $1.4 billion, mainly from reinvesting securities at higher yields and balance sheet growth, partly offset by deposit margin compression. Sequentially, net interest income fell 2% as deposit balances declined, though reinvestment at higher yields partly offset the drop. Net interest margin was 1.43%, up 12 basis points year-over-year but down 2 basis points sequentially.
Why did margins decline from the prior quarter?
Pre-tax operating margin fell to 38.5% from 39.8% in the second quarter. Total revenue was flat sequentially at $5.7 billion, while noninterest expense rose 1% to $3.5 billion. Investment and other revenue declined sequentially, and the company cited higher severance expense and revenue-related costs. Year-over-year, margin still expanded from 36.4%.
What are the key operational metrics investors should watch?
Assets under custody and/or administration reached $63.4 trillion, up 10% year-over-year, and assets under management were $2.2 trillion, up 2% but with cumulative net outflows. Average deposits were $311 billion. The filing also notes that the Securities Services and Market and Wealth Services segments drove much of the revenue growth, with Clearance and Collateral Management and Issuer Services posting strong year-over-year gains.

04—Continue

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