01—Abstract
Summary
Summary of the 10-Q filed October 30, 2026. Cited figures are marked; the original filing is the authoritative source.
The Bank of New York Mellon Corporation (BK) reported solid financial results for the third quarter of 2026, demonstrating resilience and growth across its core businesses.
Net income applicable to common shareholders was $1.6 billiona, or $2.34 per diluted share, a notable increase from $1.3 billion in the prior year's quarter, reflecting strong revenue generation and effective cost management. Total revenue reached $5.7 billion, up 12% year-over-year, driven by a robust 12% increase in fee and other revenue to $4.3 billion, largely from higher investment services fees and foreign exchange revenue. Net interest income also saw a significant 15% increase to $1.4 billion, benefiting from higher yields on reinvested securities and balance sheet growth.
Key operational metrics remain strong, with Assets Under Custody and/or Administration (AUC/A) growing 10% to $63.4 trillionb and Assets Under Management (AUM) increasing 2% to $2.2 trillion. The company also returned significant capital to shareholders, announcing a 19% increase in its quarterly cash dividend to $0.63 per share and repurchasing $937 million of common stock during the quarter. BNY Mellon's capital and liquidity positions remain robust, with a Common Equity Tier 1 (CET1) ratio of 11.0% under the Standardized Approach and strong liquidity coverage and net stable funding ratios, indicating a healthy financial foundation.
02—Key points
Key Highlights
- Net income applicable to common shareholders increased by 20% year-over-year to $1.6 billion in Q3 2026.
- Total revenue grew 12% year-over-year to $5.7 billion, driven by strong performance in fee and other revenue.
- Fee and other revenue increased 12% to $4.3 billion, primarily due to higher investment services and foreign exchange revenues.
- Net interest income rose 15% year-over-year to $1.4 billion, supported by higher yields and balance sheet growth.
- Assets Under Custody and/or Administration (AUC/A) grew 10% to $63.4 trillion, showcasing continued client trust and market leadership.
- The company increased its quarterly cash dividend by 19% to $0.63 per common share.
- Capital ratios remain strong, with a CET1 ratio of 11.0% (Standardized Approach), well above regulatory requirements.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 30, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Net Income | $1.69B$1.45B | +17.0% |
| EPS (Basic) | $2.37$1.90 | +24.7% |
| EPS (Diluted) | $2.34$1.88 | +24.5% |
| Shares Outstanding (Basic) | 679.49M705.87M | −3.7% |
| Shares Outstanding (Diluted) | 686.91M712.85M | −3.6% |
05—Questions
Frequently Asked Questions
What was the main driver of revenue growth in the third quarter of 2026?
Revenue growth was primarily driven by a strong increase in fee and other revenue, which rose 12% year-over-year to $4.3 billion. This was largely attributable to higher investment services fees and foreign exchange revenue, reflecting increased client activity and market values.
How did the company's assets under custody and management perform?
Assets Under Custody and/or Administration (AUC/A) increased by 10% year-over-year to $63.4 trillion, primarily due to higher market values, net client inflows, and net new business. Assets Under Management (AUM) saw a more modest increase of 2% to $2.2 trillion, primarily reflecting higher market values, partially offset by net outflows.
What is the company's stance on returning capital to shareholders?
BNY Mellon demonstrated a commitment to returning capital through a significant 19% increase in its quarterly cash dividend to $0.63 per share. Additionally, the company repurchased $937 million of common stock during the quarter.
How strong are the company's capital and liquidity positions?
The company maintains robust capital and liquidity. Its Common Equity Tier 1 (CET1) ratio under the Standardized Approach was 11.0% as of September 30, 2026. Furthermore, the average Liquidity Coverage Ratio (LCR) was 111% and the average Net Stable Funding Ratio (NSFR) was 129%, both well above regulatory minimums.
06—Continue