Bank of New York Mellon Corp

BNY reported second-quarter total revenue of $5.7 billion, up 13% year over year, and earnings per share of $2.45, up 27% year over year. Fee revenue increased 11%, net interest income rose 20% year over year to $1.4 billion, expenses were $3.4 billion, and provision for credit losses was a benefit of $8 million. Reported pre-tax margin was 40% and return on tangible common equity was 31%. On a segment basis, Security Services revenue was $2.8 billion (+15%), Market and Wealth Services revenue was $2.0 billion (+12%), and Investment and Wealth Management revenue was $863 million (+8%). For 2026, management now expects total revenue excluding notable items to rise 10% to 11% year over year, full-year NII to rise 12% to 13%, expenses excluding notable items to rise 6% to 7%, and about 400 basis points of positive operating leverage. The company also continues to expect a quarterly tax rate of about 23% for the remaining two quarters.

Robin Vince said BNY is entering the second half with strong momentum and believes the company’s reimagined culture, platform operating model, and commercial model are now translating into better client outcomes and stronger growth. He emphasized that the firm is leaning into innovation in AI, digital assets, and new product integration, and that BNY is increasingly able to combine platforms to solve client problems in ways competitors cannot easily replicate. His tone was confident and expansive, but still framed around long-term execution rather than a finished transformation.

Dermot McDonogh focused on the quarter’s broad-based financial strength and the updated outlook. He cited 13% revenue growth, 11% fee growth, 20% NII growth, 7% expense growth, 40% pre-tax margin, and 31% ROTCE, then raised full-year 2026 guidance to 10%–11% revenue growth, 12%–13% NII growth, 6%–7% expense growth, and roughly 400 bps of operating leverage. He also highlighted capital and liquidity, including a 5.9% Tier 1 leverage ratio, 11% CET1, an 111% liquidity coverage ratio, a 130% net stable funding ratio, $1.5 billion returned in the quarter, and $0.63 quarterly dividend.

Analysts pressed on why the company’s updated full-year guide still implies some moderation after a very strong first half. McDonogh said Q2 is typically the strongest quarter, Q3 is seasonally the slowest, and the company is taking a conservative stance around rates and market levels. Questions also focused on issuer services strength, AI returns, capital return policy, pricing pressure, and loan growth; management said issuer services benefited from corporate trust share gains, seasonal depositary receipts activity, and the TRU-M public sector mandate, while AI is already creating capacity and some measurable benefits, though BNY is not breaking out a separate AI P&L line. On pricing, management said pressure still exists but is less intense than before, aided by a lower cost to serve and more differentiated multi-product client relationships.