The Bank of New York Mellon Corporation ("BNY") (NYSE:BK) on Tuesday reported fourth-quarter 2025 diluted earnings per common share of $2.02 and adjusted diluted EPS of $2.08, beating the analyst estimate of $1.98.
Total revenue rose 7% year over year to $5.179 billion, also exceeding the consensus estimate of $5.136 billion, driven by fee revenue of $3.698 billion, up 5%, and net interest income of $1.346 billion, up 13%.
Net income applicable to common shareholders increased 26% to $1.427 billion, and the pre-tax operating margin was 36%. Return on equity was 14.5% and return on tangible common equity was 26.6%.
Results included $51 million of notable noninterest expense, primarily related to severance, partially offset by an adjustment to the FDIC special assessment.
Non-interest expense totaled $3.360 billion, flat year-over-year, or up 4% excluding notable items. Provision for credit losses was a benefit of $26 million, driven by improvements in commercial real estate exposure and changes in the macroeconomic forecast.
The effective tax rate was 20.4%, and net interest margin expanded to 1.38%, reflecting reinvestment of maturing securities at higher yields and balance sheet growth, partially offset by deposit margin compression.
Average deposits rose 8% year over year to $310.482 billion, and average loans increased 11% to $76.678 billion.
Assets under custody and/or administration increased 14% to $59.3 trillion, while assets under management rose 7% to $2.2 trillion.
In Securities Services, revenue increased 7% to $2.497 billion, with a pre-tax operating margin of 34%. Asset Servicing revenue rose 8% to $1.945 billion, and Issuer Services revenue increased 5% to $552 million. Segment AUC/A climbed 14% to $43.0 trillion, and the market value of securities on loan rose 24% to $604 billion.
Market and Wealth Services revenue increased 8% to $1.805 billion, with a 49% pre-tax operating margin. Pershing revenue increased 5% to $741 million, Payments and Trade revenue rose 11% to $524 million, and Clearance and Collateral Management revenue increased 10% to $540 million.
For the full-year 2025, BNY reported diluted EPS of $7.40 and adjusted diluted EPS of $7.50. Total revenue increased 8% to $20.080 billion, and net income applicable to common shareholders rose 22% to $5.306 billion. The full-year pre-tax operating margin was 35% and ROTCE was 26.1%.
BNY returned $5.0 billion of capital to common shareholders in 2025, comprising $1.4 billion in dividends and $3.5 billion in share repurchases, resulting in a full-year payout ratio of 94%.
As of December 31, 2025, the CET1 ratio was 11.9% and the Tier 1 leverage ratio was 6.0%. The average liquidity coverage ratio was 112% and the average net stable funding ratio was 130%, with total loss-absorbing capacity ratios exceeding minimum requirements.
Outlook
For 2026, BNY projected total revenue of $19.027 billion to $21.029 billion, compared with an analyst estimate of $20.023 billion, implying approximately 5% year-over-year growth, plus or minus.
"2025 was another successful year for BNY," Chief Executive Officer Robin Vince said. "We delivered record net income of $5.3 billion on record revenue of $20.1 billion and generated an ROTCE of 26%." He added, "We are entering 2026 with positive momentum and excited for the work ahead of us to deliver increased value for our clients and shareholders."
BK Price Action: Bank of New York Mellon shares were down 0.51% at $120.05 during premarket trading on Tuesday. The stock is trading near its 52-week high of $122.36, according to Benzinga Pro data.
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