The Bank of New York Mellon Corporation

BNY reported second-quarter revenue of $5.7 billion, up 13% year over year, and EPS of $2.45, up 27% year over year. Fee revenue rose 11%; investment services fees were up 13%; investment management and performance fees were up 5%; FX revenue was up 8%; and net interest income was up 20% year over year to $1.4 billion. Expenses were $3.4 billion, up 7%, and provision for credit losses was a benefit of $8 million. The firm reported pretax margin of 40%, ROTCE of 31%, Tier 1 leverage ratio of 5.9%, CET1 ratio of 11%, liquidity coverage ratio of 111%, and NSFR of 130%. For 2026, management raised guidance for total revenue excluding notable items to up 10% to 11% year over year, full-year NII to up 12% to 13%, expenses excluding notable items to up 6% to 7%, and positive operating leverage to about 400 basis points. The company also continues to expect a quarterly tax rate of approximately 23% for the remaining two quarters.

Robin Vince emphasized that BNY’s transformation is now showing up in the numbers and in client behavior. He highlighted the new operating model, commercial model, and culture shift as the foundation for stronger sales, more integrated solutions, and better innovation, including AI and digital assets. His tone was confident and upbeat, but he repeatedly framed this as a multi-year effort with more to do rather than a finished transformation.

Dermot McDonogh focused on the financial strength of the quarter and the raised outlook. He walked through the hard numbers: $5.7 billion of revenue, $2.45 EPS, 40% pretax margin, 31% ROTCE, and $1.4 billion of net interest income, while noting expenses of $3.4 billion and a $8 million credit loss benefit. He also pointed to strong capital and liquidity, including $1.5 billion returned to common shareholders in Q2, $2.8 billion returned in the first half, an 87% payout ratio year to date, and a 19% increase in the quarterly dividend to $0.63 per share.

Analysts pressed on why guidance still appears conservative after strong first-half results, and management said Q2 is typically the strongest quarter while Q3 is seasonally the slowest, with tougher year-over-year NII and deposit comps. Questions also focused on issuer services strength, where management pointed to corporate trust market-share gains, seasonal depository receipts activity, and the TRU-M public sector mandate. On AI and digital assets, management said AI is creating capacity, improving products, and potentially expanding the business, while digital assets are part of a broader shift toward an always-on financial infrastructure rather than a direct threat to custody revenue.