BNY Mellon Surges After Record Revenue and Strong Earnings Beat

Bank of New York Mellon (NYSE:BK) reported second-quarter results that topped expectations, fueled by broad-based revenue growth and record levels of client assets.

The financial services firm posted adjusted earnings of $1.94 per share, well ahead of the $1.75 consensus. Revenue climbed 9% year-over-year to $5.03 billion, marking the first time the company’s quarterly revenue surpassed the $5 billion threshold. Analysts had expected $4.78 billion.

BNY Mellon delivered robust profitability metrics, including a 37% pre-tax operating margin and a return on tangible common equity of 27.8%, signaling significant operating leverage. The company’s assets under custody and/or administration grew 13% to $55.8 trillion, while assets under management rose 3% to $2.1 trillion.

Net interest income increased 17% to $1.2 billion, benefiting from reinvestment of maturing securities at higher yields and balance sheet expansion. Fee revenue also climbed 7%, supported by new business wins, favorable market conditions, and increased client activity.

BNY Mellon maintained a strong capital position, reporting a Common Equity Tier 1 ratio of 11.5%. The bank returned $1.2 billion to shareholders during the quarter through dividends and share repurchases, underscoring its commitment to capital returns amid ongoing growth.