BNY Mellon Q3 Net Income Jumps 21% on Strong Fee, Interest Gains

TL;DR

**BNY Mellon's Q3 numbers are solid, showing strong fee and interest income growth, making it a buy for steady returns.**

AI Summary

The Bank of New York Mellon Corporation reported a net income of $1.34 billion for Q3 2025, a 20.7% increase from $1.11 billion in Q3 2024. Diluted earnings per share rose to $1.88 from $1.50 year-over-year. Total revenue increased 9% to $5.08 billion, driven by a 7% rise in fee revenue to $3.64 billion and an 18% increase in net interest income to $1.24 billion. Fee revenue growth was attributed to net new business, higher client activity, and market values, while net interest income benefited from reinvestment of maturing securities at higher yields. Assets under custody and/or administration (AUC/A) grew 11% to $57.8 trillion, reflecting net client inflows and higher market values. Assets under management (AUM) remained flat at $2.1 trillion due to higher market values offset by cumulative net outflows. Noninterest expense increased 4%, primarily due to investments and employee merit increases. The company returned $1.2 billion to common shareholders, including $849 million in common share repurchases.

Why It Matters

BNY Mellon's robust Q3 2025 performance, marked by a 20.7% net income increase and 9% total revenue growth, signals strong operational execution in a competitive financial services landscape. The significant rise in AUC/A to $57.8 trillion demonstrates continued client trust and market share gains, which is crucial for a custody bank. For investors, the 13% dividend increase and $849 million in share repurchases indicate a commitment to shareholder returns. Employees benefit from merit increases, while customers see a stable, growing institution. This performance could put pressure on competitors in the asset servicing and wealth management sectors to demonstrate similar growth.

Risk Assessment

Risk Level: low — The risk level is low, supported by a strong CET1 ratio of 11.7% under the Standardized Approach at Sept. 30, 2025, up from 11.5% at June 30, 2025, indicating robust capital. The provision for credit losses was a benefit of $7 million, suggesting a stable credit environment despite some commercial real estate exposure, further mitigating immediate financial risks.

Analyst Insight

Investors should consider BNY Mellon's consistent capital returns, including the 13% dividend increase and $849 million in share repurchases, as a sign of financial health and commitment to shareholders. The strong growth in fee revenue and net interest income suggests a stable core business, making BK-PK a potentially attractive long-term hold for income-focused portfolios.

Financial Highlights

revenue

$5.08B

net Income

$1.34B

eps

$1.88

revenue Growth

+9%

Revenue Breakdown

Key Numbers

• $1.34B — Net Income (Increased 20.7% from $1.11B in Q3 2024)
• $1.88 — Diluted EPS (Increased from $1.50 in Q3 2024)
• 9% — Total Revenue Growth (Increased to $5.08B in Q3 2025)
• 7% — Fee Revenue Growth (Increased to $3.64B in Q3 2025)
• 18% — Net Interest Income Growth (Increased to $1.24B in Q3 2025)
• $57.8T — Assets Under Custody/Administration (AUC/A) (Increased 11% from Q3 2024)
• $2.1T — Assets Under Management (AUM) (Flat compared to Q3 2024)
• 13% — Dividend Increase (Quarterly cash dividend increased from $0.47 to $0.53 per share)
• $849M — Common Share Repurchases (Part of $1.2B returned to shareholders in Q3 2025)
• 11.7% — CET1 Ratio (Standardized) (Increased from 11.5% at June 30, 2025)

Key Players & Entities

• The Bank of New York Mellon Corporation (company) — Registrant
• Robin Vince (person) — Chief Executive Officer and Chairman of the Board of Directors
• $1.34 billion (dollar_amount) — Net income applicable to common shareholders in Q3 2025
• $1.11 billion (dollar_amount) — Net income applicable to common shareholders in Q3 2024
• $5.08 billion (dollar_amount) — Total revenue in Q3 2025
• $3.845 billion (dollar_amount) — Fee and other revenue in Q3 2025
• $1.236 billion (dollar_amount) — Net interest income in Q3 2025
• $57.8 trillion (dollar_amount) — Assets under custody and/or administration (AUC/A) at Sept. 30, 2025
• $2.1 trillion (dollar_amount) — Assets under management (AUM) at Sept. 30, 2025
• $849 million (dollar_amount) — Common share repurchases in Q3 2025

FAQ

Industry Context

BNY Mellon operates in the global financial services sector, providing services to institutional and wealth management clients. The industry is characterized by intense competition, evolving regulatory landscapes, and the increasing importance of technology and scale. Key trends include the growth of passive investing, demand for integrated solutions across the investment lifecycle, and the need for robust risk management and cybersecurity.

Regulatory Implications

As a large, systemically important financial institution, BNY Mellon is subject to stringent regulatory oversight, including capital requirements (e.g., CET1 ratio) and compliance mandates. Changes in regulations related to capital, liquidity, and operational resilience can impact profitability and business strategies. The reported increase in the CET1 ratio to 11.7% suggests strong compliance with current capital adequacy rules.

What Investors Should Do

1. Monitor fee revenue growth drivers (net new business, client activity, market values) for continued top-line expansion.
2. Assess the sustainability of net interest income growth, considering the impact of reinvestment yields and interest rate environments.
3. Evaluate the flat AUM trend against net outflows and market appreciation to understand competitive positioning in asset management.
4. Observe non-interest expense management, particularly the impact of investments and merit increases, on operating margins.
5. Consider the company's capital return strategy, evidenced by the dividend increase and share repurchases, as a positive signal of financial health and shareholder focus.

Key Dates

• 2025-07-XX: Board of Directors approved a 13% increase in the quarterly cash dividend on common stock. — Indicates confidence in financial performance and commitment to returning capital to shareholders.

Glossary

Assets Under Custody and/or Administration (AUC/A)

The total market value of assets that BNY Mellon holds or administers on behalf of its clients. (A key metric indicating the scale of BNY Mellon's core custody business and its client relationships, showing significant growth to $57.8 trillion.)

Assets Under Management (AUM)

The total market value of assets that BNY Mellon actively manages on behalf of its clients. (Represents BNY Mellon's investment management capabilities. It remained flat at $2.1 trillion, with market appreciation offset by net outflows.)

CET1 Ratio (Standardized)

Common Equity Tier 1 ratio, a measure of a bank's core capital strength relative to its risk-weighted assets, calculated under standardized approaches. (Indicates BNY Mellon's capital adequacy and ability to absorb losses. It increased to 11.7% from 11.5% at June 30, 2025, demonstrating improved capital position.)

Year-Over-Year Comparison

Compared to the prior year's third quarter, BNY Mellon has demonstrated robust growth, with total revenue increasing by 9% to $5.08 billion and net income rising by 20.7% to $1.34 billion. This performance was driven by strong growth in both fee revenue (7%) and net interest income (18%). Assets under custody and/or administration saw an 11% increase, indicating expanded client relationships. While AUM remained flat, the company's capital position strengthened, with the CET1 ratio improving to 11.7%. Non-interest expenses increased by 4%, reflecting strategic investments.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value BK New York Stock Exchange 6
• $2.1 — Canadian Imperial Bank of Commerce, of $2.1 trillion at Sept. 30, 2025, $2.0 trilli
• $2.0 — ce, of $2.1 trillion at Sept. 30, 2025, $2.0 trillion at June 30, 2025 and $1.9 tril
• $1.9 — 025, $2.0 trillion at June 30, 2025 and $1.9 trillion at Sept. 30, 2024. (d) Repres
• $57.8 — ore. As of Sept. 30, 2025, BNY oversees $57.8 trillion in assets under custody and/or
• $0.47 — cash dividend on our common stock, from $0.47 to $0.53 per share. The increased quart
• $0.53 — dend on our common stock, from $0.47 to $0.53 per share. The increased quarterly cash
• $1.34 b — me applicable to common shareholders of $1.34 billion, or $1.88 per diluted common shar
• $1.88 — ommon shareholders of $1.34 billion, or $1.88 per diluted common share, in the third
• $1.36 billion — e applicable to common shareholders was $1.36 billion (Non-GAAP), or $1.91 (Non-GAAP) per dil
• $1.91 — olders was $1.36 billion (Non-GAAP), or $1.91 (Non-GAAP) per diluted common share, in
• $1.11 b — e applicable to common shareholders was $1.11 billion, or $1.50 per diluted common shar
• $1.50 — mmon shareholders was $1.11 billion, or $1.50 per diluted common share, in the third
• $1.13 billion — e applicable to common shareholders was $1.13 billion (Non-GAAP), or $1.52 (Non-GAAP) per dil
• $1.52 — olders was $1.13 billion (Non-GAAP), or $1.52 (Non-GAAP) per diluted common share, in

Filing Documents

• bk-20250930.htm (10-Q) — 7145KB
• form10-q_ex310x3q25.htm (EX-3.10) — 190KB
• form10-q_ex311x3q25.htm (EX-31.1) — 9KB
• form10-q_ex312x3q25.htm (EX-31.2) — 9KB
• form10-q_ex321x3q25.htm (EX-32.1) — 4KB
• form10-q_ex322x3q25.htm (EX-32.2) — 4KB
• 0001390777-25-000159.txt ( ) — 30645KB
• bk-20250930.xsd (EX-101.SCH) — 114KB
• bk-20250930_cal.xml (EX-101.CAL) — 261KB
• bk-20250930_def.xml (EX-101.DEF) — 701KB
• bk-20250930_lab.xml (EX-101.LAB) — 1385KB
• bk-20250930_pre.xml (EX-101.PRE) — 1024KB
• bk-20250930_htm.xml (XML) — 7694KB

– Financial Information

Part I – Financial Information Items 2. and 3. Management's Discussion and Analysis of Financial Condition and Results of Operations; Quantitative and Qualitative Disclosures about Market Risk: General 4 Overview 4 Key third quarter 2025 events 4 Highlights of third quarter 2025 results 5 Fee and other revenue 6 Net interest income 9 Noninterest expense 12 Income taxes 12 Review of business segments 12 Critical accounting estimates 22 Consolidated balance sheet review 22 Liquidity and dividends 31 Capital 35 Trading activities and risk management 39 Asset/liability management 41 Supplemental information – Explanation of GAAP and Non-GAAP financial measures 44 Recent accounting and regulatory developments 48 Website information 49

Financial Statements

Item 1. Financial Statements: Consolidated Income Statement (unaudited) 50 Consolidated Comprehensive Income Statement (unaudited) 51 Consolidated Balance Sheet (unaudited) 52 Consolidated Statement of Cash Flows (unaudited) 53 Consolidated Statement of Changes in Equity (unaudited) 54 Page

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements: Note 1—Basis of presentation 55 Note 2—Acquisitions and dispositions 55 Note 3—Securities 56 Note 4—Loans and asset quality 60 Note 5—Goodwill and intangible assets 66 Note 6—Other assets 68 Note 7—Contract revenue 69 Note 8—Net interest income 72 Note 9—Employee benefit plans 72 Note 10—Income taxes 73 Note 11—Variable interest entities 73 Note 12—Preferred stock 74 Note 13—Other comprehensive income (loss) 76 Note 14—Fair value measurement 77 Note 15—Fair value option 82 Note 16—Derivative instruments 82 Note 17—Commitments and contingent liabilities 88 Note 18—Business segments 94 Note 19—Supplemental information to the Consolidated Statement of Cash Flows 97

Controls and Procedures

Item 4. Controls and Procedures 98

Forward-looking Statements

Forward-looking Statements 99

– Other Information

Part II – Other Information

Legal Proceedings

Item 1. Legal Proceedings. 102

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 102

Other Information

Item 5. Other Information. 102

Exhibits

Item 6. Exhibits. 102 Index to Exhibits 103 Signature 105 The Bank of New York Mellon Corporation (and its subsidiaries) Consolidated Financial Highlights (unaudited) Quarter ended Year-to-date (dollars in millions, except per share amounts and unless otherwise noted) Sept. 30, 2025 June 30, 2025 Sept. 30, 2024 Sept. 30, 2025 Sept. 30, 2024 Results applicable to common shareholders of The Bank of New York Mellon Corporation: Net income $ 1,339 $ 1,391 $ 1,110 $ 3,879 $ 3,206 Basic earnings per share $ 1.90 $ 1.95 $ 1.51 $ 5.43 $ 4.29 Diluted earnings per share $ 1.88 $ 1.93 $ 1.50 $ 5.39 $ 4.26 Fee and other revenue $ 3,845 $ 3,825 $ 3,600 $ 11,303 $ 10,654 Net interest income 1,236 1,203 1,048 3,598 3,118 Total revenue $ 5,081 $ 5,028 $ 4,648 $ 14,901 $ 13,772 Return on common equity (annualized) 13.7 % 14.7 % 12.0 % 13.7 % 11.8 % Return on tangible common equity (annualized) – Non-GAAP (a) 25.6 % 27.8 % 22.8 % 25.9 % 22.7 % Fee revenue as a percentage of total revenue 72 % 72 % 73 % 72 % 73 % Non-U.S. revenue as a percentage of total revenue 35 % 36 % 35 % 35 % 35 % Pre-tax operating margin 36 % 37 % 33 % 35 % 32 % Net interest margin 1.31 % 1.27 % 1.16 % 1.30 % 1.16 % Net interest margin on a fully taxable equivalent ("FTE") basis – Non-GAAP (b) 1.31 % 1.27 % 1.16 % 1.30 % 1.16 % Assets under custody and/or administration ("AUC/A") at period end (in trillions) (c) $ 57.8 $ 55.8 $ 52.1 $ 57.8 $ 52.1 Assets under management ("AUM") at period end (in trillions) (d) $ 2.1 $ 2.1 $ 2.1 $ 2.1 $ 2.1 Average common shares and equivalents outstanding (in thousands) : Basic 705,873 714,799 736,547 714,135 747,766 Diluted 712,854 720,007 742,080 720,344 752,555 Selected average balances: Interest-earning assets $ 374,493 $ 375,542 $ 356,934 $ 368,313 $ 352,250 Total assets $ 437,491 $ 438,608 $ 416,397 $ 430,727 $ 410,980 Interest-bearing deposits $ 248,016 $ 250,688 $ 236,724 $ 244,416 $ 233,843 Noninterest-bearing depos

– Financial Information

Part I – Financial Information Items 2. and 3. Management's Discussion and Analysis of Financial Condition and Results of Operations; Quantitative and Qualitative Disclosures about Market Risk General In this Quarterly Report on Form 10-Q, references to "our," "we," "us," "BNY," the "Company" and similar terms refer to The Bank of New York Mellon Corporation and its consolidated subsidiaries. The term "Parent" refers to The Bank of New York Mellon Corporation but not its subsidiaries. Certain business terms used in this report are defined in the Glossary included in our Annual Report on Form 10-K for the year ended Dec. 31, 2024 (the "2024 Annual Report"). The following should be read in conjunction with the Consolidated Financial Statements included in this report. Investors should also read the section titled "Forward-looking Statements." Overview BNY is a global financial services company that helps make money work for the world – managing it, moving it and keeping it safe. For more than 240 years BNY has partnered alongside clients, putting its expertise and platforms to work to help them achieve their ambitions. Today BNY helps over 90% of Fortune 100 companies and nearly all the top 100 banks globally access the money they need. BNY supports governments in funding local projects and works with over 90% of the top 100 pension plans to safeguard investments for millions of individuals, and so much more. As of Sept. 30, 2025, BNY oversees $57.8 trillion in assets under custody and/or administration and $2.1 trillion in assets under management. BNY is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Headquartered in New York City, BNY has been named among Fortune's World's Most Admired Companies and Fast Company's Best Workplaces for Innovators. Additional information is available on www.bny.com. Follow on LinkedIn or visit the BNY Newsroom for the latest company news. BNY has three business segments, Securities Services

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