3Q26
Filed Oct 15, 2026BNY Reports Third Quarter 2026 Earnings Per Common Share of $2.34
Total revenue increased 12%, diluted EPS increased 24%, pre-tax operating margin was 38.5%, and ROTCE was 29.0%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total fee revenueGAAP | $4.08B | 1% | 12% |
| Investment and other revenueGAAP | $175M | N/M | N/M |
| Total fee and other revenueGAAP | $4.25B | — | 11% |
| Net interest incomeGAAP | $1.42B | (2)%“ | 15% |
| Total revenueGAAP | $5.68B | —% | 12% |
| Provision for credit lossesGAAP | $1M | N/M | N/M |
| Total noninterest expenseGAAP | $3.49B | 1% | 8% |
| Income before taxesGAAP | $2.19B | (4)%“ | 18% |
| Provision for income taxesGAAP | $499M | 5% | 26% |
| Net incomeGAAP | $1.69B | (6)%“ | 16% |
| Net income applicable to common shareholders of The Bank of New York Mellon CorporationGAAP | $1.61B | (5)%“ | 20% |
| Diluted earnings per common shareGAAP | $2.34 | (4)%“ | 24% |
| Basic earnings per common shareGAAP | $2.37 | – | – |
| Pre-tax operating marginGAAP | 38.5% | – | – |
| Return on common equityGAAP | 16.0% | – | – |
| Return on tangible common equitynon-GAAP | 29.0% | – | – |
| Adjusted total revenuenon-GAAP | $5.68B | —% | 12% |
| Adjusted total noninterest expensenon-GAAP | $3.47B | 1% | 8% |
| Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporationnon-GAAP | $1.63B | (5)%“ | 19% |
| Adjusted diluted earnings per common sharenon-GAAP | $2.37 | (4)%“ | 24% |
| Adjusted pre-tax operating marginnon-GAAP | 38.9% | – | – |
| Average loansother | $86.79B | 1% | 19% |
| Average depositsother | $311.1B | (1)%“ | 4% |
| AUC/A at period endother | $63.4T | 1% | 10% |
| AUM at period endother | $2.2T | (2)%“ | 2% |
| Net interest income, on a fully taxable equivalent basisnon-GAAP | $1.42B | (2)%“ | 15% |
| Average interest-earning assetsother | $396.5B | —% | 6% |
| Net interest marginGAAP | 1.43% | (2) bps | 12 bps |
| Net interest margin (FTE)non-GAAP | 1.43% | (2) bps | 12 bps |
| CET1 ratioother | 10.9% | – | – |
| Tier 1 leverage ratioother | 5.7% | decreased 24 bps sequentially | decreased 42 bps year-over-year |
| Average liquidity coverage ratioother | 111% | – | – |
| Average net stable funding ratioother | 129% | – | – |
| Book value per common shareother | $58.43 | – | – |
| Tangible book value per common sharenon-GAAP | $32.22 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Securities ServicesYear-over-year growth primarily reflected higher net interest income, client activity, net new business and market values. Sequential growth primarily reflected higher client activity, partially offset by lower foreign exchange revenue and net interest income. | $2.82B | —% | 15% |
| Market and Wealth ServicesYear-over-year growth reflected higher net interest income, market values, client activity, net new business, collateral balances and clearance volumes. | $1.98B | 1% | 12% |
| Investment and Wealth ManagementInvestment Management benefited year-over-year from higher market values, partly offset by the mix of AUM flows. Wealth Management growth reflected higher net interest income and market values. | $857M | (1)% | 4% |
| OtherThe year-over-year decrease primarily reflected the absence of 3Q25 gains realized on the sale of real estate, partially offset by a 3Q26 strategic equity investment gain. | $18M | – | – |
Capital returns
- Returned $1.4 billion of capital to common shareholders.
- $436 million of dividends.
- $937 million of share repurchases.
- Total payout ratio of 86% year-to-date.
What drove it
- Fee revenue increased 12%, primarily reflecting net new business, higher client activity and higher market values, partially offset by the mix of AUM flows.
- Net interest income increased 15%, primarily reflecting reinvestment of investment securities at higher yields and balance sheet growth, partially offset by deposit margin compression.
- Noninterest expense increased 8%, primarily reflecting higher revenue-related expenses and investments, partially offset by efficiency savings.
- AUC/A increased 10%, primarily reflecting higher market values, net client inflows and net new business, partially offset by the unfavorable impact of a stronger U.S. dollar.
- AUM increased 2%, primarily reflecting higher market values, partially offset by cumulative net outflows and the unfavorable impact of the stronger U.S. dollar.
Concerns
- Net interest income decreased 2% sequentially, primarily reflecting lower deposit balances, partially offset by reinvestment of investment securities at higher yields.
- Net interest margin was 1.43%, compared with 1.45% in 2Q26.
- Average deposits decreased 1% sequentially.
- AUM decreased 2% sequentially.
- CET1 ratio declined to 10.9% from 11.0% at June 30, 2026, and Tier 1 leverage ratio declined to 5.7% from 5.9%.
- Pre-tax operating margin was 38.5%, compared with 39.8% in 2Q26.
What to watch
- Deposit balances and deposit margin compression, which partly offset the year-over-year benefit from securities reinvestment and balance sheet growth.
- The mix of AUM flows and cumulative net outflows.
- Securities Services client activity, net new business and foreign exchange revenue.
- Capital ratios following common stock repurchases, dividends, accumulated other comprehensive income changes and the preferred stock redemption, net of an issuance.
- Preliminary AUC/A, AUM and regulatory capital ratios, which BNY stated are subject to change as it completes its Quarterly Report on Form 10-Q.
Balance sheet and cash flow
- CET1 capital of $21.0 billion decreased compared with June 30, 2026.
- Tier 1 capital of $25.2 billion decreased compared with June 30, 2026.
- Common shares outstanding (in thousands): 672,898 at Sept. 30, 2026, 678,504 at June 30, 2026 and 688,236 at Dec. 31, 2025.
- Average deposits were $311,075 million, compared with $314,036 million in 2Q26 and $299,326 million in 3Q25.
- Average loans were $86,791 million, compared with $85,587 million in 2Q26 and $72,692 million in 3Q25.
Analysis
BNY reported broad-based third-quarter growth. Total revenue was $5,676 million, up 12% from $5,081 million in 3Q25, while total fee revenue rose 12% to $4,078 million and net interest income increased 15% to $1,423 million. Net income applicable to common shareholders rose 20% to $1,608 million, and diluted earnings per common share increased 24% to $2.34. Adjusted diluted earnings per common share was $2.37, also up 24%.
The revenue mix reflected stronger client activity, net new business and market values. Securities Services generated $2,820 million of revenue, up 15%, while Market and Wealth Services revenue rose 12% to $1,984 million. Investment and Wealth Management revenue increased 4% to $857 million. AUC/A rose 10% to $63.4 trillion, supported by market values, net client inflows and net new business. AUM rose 2% year-over-year to $2.2 trillion, although management cited cumulative net outflows and the unfavorable impact of a stronger U.S. dollar.
Profitability strengthened versus the prior year despite higher investment spending. Noninterest expense increased 8% to $3,489 million, below the 12% increase in total revenue. GAAP pre-tax operating margin was 38.5%, compared with 36.4% in 3Q25, and ROTCE was 29.0%, compared with 25.6%. Sequentially, however, revenue was flat, net interest income declined 2%, diluted EPS declined 4%, and pre-tax operating margin declined from 39.8%.
Capital returns totaled $1.4 billion, including $436 million of dividends and $937 million of common share repurchases. The total payout ratio was 86% year-to-date. Capital ratios moved lower sequentially, with CET1 at 10.9% and Tier 1 leverage at 5.7%. BNY attributed the reduction in capital primarily to stock repurchases, dividends, a decline in accumulated other comprehensive income and, for Tier 1 capital, a preferred stock redemption net of an issuance, partly offset by earnings.
No forward financial guidance was reported in the filing. The period's central operating considerations are the sequential decline in deposits and net interest income, deposit margin compression, the mix of AUM flows, and whether client activity, market values and net new business continue to sustain fee-led revenue growth and operating leverage.
Management, verbatim
BNY delivered strong results in the third quarter.
Robin Vince, Chief Executive Officer
With broad-based growth across our platforms, we increased revenue by 12% year-over-year, delivering significant operating leverage and earnings per share growth of 24%.
Robin Vince, Chief Executive Officer
Sales and pipelines remained very healthy across products, client segments and regions and we launched several solutions during the quarter that are meeting emerging needs in the market.
Robin Vince, Chief Executive Officer
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward expense guidance
- Forward tax-rate guidance
- Forward capital-return guidance
- Gross margin
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Prior-year CET1 ratio for the quarter ended Sept. 30, 2026
- Year-over-year and sequential percentage changes for basic earnings per common share
- Year-over-year and sequential percentage changes for pre-tax operating margin, ROE and ROTCE
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.