Good: BNY Mellon beats on revenue and EPS; record sales driven by higher NII and asset‑servicing fees
Verdict: Good. BNY Mellon topped Wall Street’s Q3 expectations and posted record revenue, powered by an 18% jump in net interest income (interest earned on assets minus what it pays on deposits) and solid fee growth. Profitability improved year over year. Shares were up about 2% in early trading. (bny.com)
What drove the quarter
Revenue rose 9% to $5.08 billion and diluted EPS climbed 25% to $1.88 (adjusted EPS $1.91). Net interest income increased to $1.24 billion (+18% YoY) as maturing securities were reinvested at higher yields and the balance sheet expanded. Total fee revenue grew 7% to $3.64 billion; asset servicing revenue rose 12%. (bny.com)
Margins widened: pre‑tax margin reached 36% (33% a year ago) on positive operating leverage (revenue up faster than expenses). Noninterest expense rose 4% to $3.24 billion, and credit costs were a $7 million reserve release. (bny.com)
By segment, Securities Services revenue rose 11% to $2.46 billion (pre‑tax margin 33%), while Market & Wealth Services rose 14% to $1.77 billion (pre‑tax margin 50%). Foreign‑exchange revenue softened sequentially, contributing to a small EPS dip versus Q2 ($1.88 vs. $1.93). (bny.com)
Balances were constructive: assets under custody/administration hit $57.8 trillion (+11% YoY) on market gains and client inflows. Assets under management were $2.1 trillion and roughly flat as outflows offset market appreciation. Average deposits were $299 billion (+5% YoY; flat sequentially). Net interest margin ticked up to 1.31%. (bny.com)
| Metric | Q3 2025 result | YoY change | Consensus/expectation |
|---|---|---|---|
| Revenue | $5.08B | +9% | $4.95B |
| Diluted EPS (GAAP) | $1.88 | +25% | $1.76 |
| Adjusted EPS (non‑GAAP) | $1.91 | +26% | — |
| Net interest income (NII) | $1.236B | +18% | +12.6% YoY growth expected |
| Fee revenue | $3.64B | +7% | — |
| Pre‑tax margin | 36% | up from 33% | — |
| AUC/A | $57.8T | +11% | — |
| AUM | $2.1T | flat | — |
Context vs. expectations
The beats were clear: revenue of $5.08B vs. ~$4.95B expected, and EPS of $1.88 vs. ~$1.76 expected. Importantly, NII growth of 18% outpaced the ~12.6% growth analysts modeled. (bny.com)
Against last quarter, results were a touch softer: EPS slipped 3% from $1.93 and the pre‑tax margin eased 1 point, reflecting lower FX revenue and slightly higher costs. There was also a small disposal gain within “investment and other revenue,” though the gap between reported and adjusted results was minimal. (bny.com)
Capital returns and outlook
BNY returned $1.2B to shareholders in Q3 ($381M dividends, $849M buybacks) and paid its higher $0.53 dividend. Capital stays solid with a CET1 ratio of 11.7%. (bny.com)
Formal quarterly guidance was limited, but management has been targeting continued positive operating leverage; earlier commentary this year pointed to 2025 NII up mid‑single digits and expenses up ~1–2% for the year, with payout around ~100% of earnings over time. (investing.com)
What to watch next
Sustainability of NII tailwinds if rates drift lower, and any deposit‑mix shifts that could pressure margin. Also watch FX and trading‑related activity, which dipped sequentially this quarter. (bny.com)
Flows: AUC/A benefited from markets and new business; AUM was flat due to net outflows. How those trends evolve into Q4 will shape fee momentum. (reuters.com)
Legal overhang: a new lawsuit filed Oct. 15 alleging past ties to Jeffrey Epstein could create headline risk, though not an immediate financial impact in Q3. (reuters.com)