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Net Income: Record net income of $5.3 billion for 2025.
Revenue: Record revenue of $20.1 billion, up 8% year over year.
Return on Tangible Common Equity: 26% for 2025.
Operating Leverage: 507 basis points of positive operating leverage on a reported basis.
Earnings Per Share (EPS): $7.40, up 28% year over year.
Capital Returned to Shareholders: $5 billion through dividends and share repurchases.
Total Revenue (Q4): $5.2 billion, up 7% year over year.
Fee Revenue (Q4): Up 5% year over year.
Assets Under Custody and Administration (AUCA): $59.3 trillion, up 14% year over year.
Assets Under Management (AUM): $2.2 trillion, up 7% year over year.
Expenses (Q4): $3.4 billion, flat year over year on a reported basis.
Pre-tax Margin (Q4): 36% on a reported basis.
Return on Tangible Common Equity (Q4): 27%.
Net Interest Income (Q4): Up 13% year over year.
Security Services Revenue (Q4): $2.5 billion, up 7% year over year.
Market and Wealth Services Revenue (Q4): $1.8 billion, up 8% year over year.
Investment and Wealth Management Revenue (Q4): $854 million, down 2% year over year.
Pre-tax Margin Target: Increased to 38% for the medium term.
Return on Tangible Common Equity Target: Increased to 28% for the medium term.
Release Date: January 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Bank of New York Mellon Corp (NYSE:BK) delivered record net income of $5.3 billion on record revenue of $20.1 billion in 2025.
The company achieved an 8% year-over-year revenue growth and a 28% increase in earnings per share.
BK returned $5 billion of capital to shareholders through dividends and share repurchases.
The company made significant advances in AI adoption, enhancing operational efficiency and client service.
BK’s strategic initiatives have resulted in improved pre-tax margins and positive operating leverage for eight consecutive quarters.
Investment management and performance fees were flat, with growth offset by the mix of AUM flows and prior rebates.
Expenses increased by 4% excluding notable items, driven by higher investments and employee merit increases.
The company experienced net outflows of $3 billion in the fourth quarter, including $23 billion from long-term strategies.
Foreign exchange revenue declined by 3% year over year due to lower spreads and volatility.
Despite strong financial performance, BK remains cautious about market conditions and potential macroeconomic impacts.
Story Continues
Q: Can you unpack the revenue growth outlook for 2026, particularly regarding net interest income (NII) and fees? A: Dermot Mcdonogh, CFO, explained that BNY Mellon expects total revenue to grow by approximately 5% in 2026. NII is projected to grow slightly ahead of 5%, while fee revenue may be a bit lower than 5%. The fourth quarter of 2025 was particularly strong for NII, providing a good jumping-off point for 2026.
Q: How does AI factor into BNY Mellon’s new higher targets, and what are the expectations for digital employees over the next few years? A: Robin Vince, CEO, emphasized that AI is seen as a catalyst for transformational change. BNY Mellon has over 100 digital employees, and while it’s challenging to project exact numbers for the future, AI is expected to significantly impact revenue growth and operational efficiency. The focus is on integrating AI across the company to unlock capacity and enhance client service.
Q: Can you detail the pre-tax margin improvement and how it varies across different business segments? A: Dermot Mcdonogh, CFO, highlighted that BNY Mellon has seen significant improvements in pre-tax margins across its segments. Security services have transformed with better pricing and efficiency, while market and wealth services are expected to maintain high margins. Investment and wealth management is anticipated to show the most improvement in 2026 and beyond.
Q: What is the institutional demand for BNY Mellon’s newly launched tokenized deposit capabilities? A: Robin Vince, CEO, explained that the tokenized deposit capabilities are part of BNY Mellon’s broader digital asset strategy. The initiative aims to connect traditional and digital financial services, enhancing efficiency and reducing friction. Institutional demand is driven by the desire for improved cash utilization and the ability to facilitate more activities with programmable money.
Q: How sustainable is the double-digit fee growth in the clearance and collateral management business, given the expected increase in treasury issuance? A: Dermot Mcdonogh, CFO, noted that while the growth rate may moderate compared to previous years, the business is expected to continue growing, particularly with new products and services internationally. The US market is anticipated to stabilize, with growth opportunities outside the US.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.