# BNY Posts 12% Third-Quarter Revenue Growth as Diluted EPS Rises 24%

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/32683
Published: 2026-10-15T18:30:03.000Z
Updated: 2026-10-15T18:30:03.000Z
Section: Business

> Preliminary assets under custody or administration reached $63.4 trillion, up 10% from a year earlier; assets under management totaled $2.2 trillion.

The Bank of New York Mellon Corporation (BNY) posted a 12% increase in third-quarter revenue to $5.676 billion, while diluted earnings per share climbed 24% to $2.34.

BNY shares rose about 3% in regular trading Oct. 15, following a roughly 2.4% decline in the prior session. Diluted EPS was up from $1.88 a year earlier, while revenue increased from $5.081 billion.

Fee revenue grew 12% to $4.078 billion, and net interest income rose 15% to $1.423 billion. New business, client activity and higher market values supported fee revenue. Reinvestments at higher yields and balance-sheet growth lifted net interest income, although tighter deposit margins offset part of the increase. Investment and other revenue declined to $175 million from $208 million a year earlier.

The year-over-year gains came with a slight sequential pullback. Revenue slipped to $5.676 billion from $5.698 billion in the second quarter, and diluted EPS declined from $2.45. Noninterest expense increased 8% from a year earlier to $3.489 billion. Pretax operating margin was 38.5%, up from 36.4% a year earlier but below 39.8% in the second quarter.

GAAP net income increased 16% to $1.687 billion from $1.457 billion. Net income applicable to common shareholders rose 20% to $1.608 billion from $1.339 billion. Adjusted diluted EPS was $2.37, compared with GAAP diluted EPS of $2.34.

Securities Services revenue rose 15% to $2.820 billion. Asset Servicing generated $2.130 billion, up 12%, while Issuer Services contributed $690 million, up 27%.

Preliminary quarter-end figures showed $63.4 trillion in assets under custody or administration, 10% higher than a year earlier. BNY's separate assets-under-management total was $2.2 trillion, up 2%. The custody and administration increase reflected higher market values, net client inflows and new business. Market appreciation supported AUM despite accumulated net outflows and dollar strength.

Common shareholders received $1.4 billion in total capital returns: $436 million through dividends and $937 million through repurchases. Its year-to-date payout ratio was 86%. Average deposits totaled $311 billion, up 4% from a year earlier and down 1% sequentially. Average loans were $86.791 billion, an increase of 19% year over year.