Results at a glance
- Period
- FY2026Q3
- Revenue
- $5.7B (5,676 MUSD)
- Net income
- $1.6B (1,608 MUSD)
- Net margin
- 28.3%
From the Bny Open LedgerView the live ledgerIssuer filing (FY2026Q3)
The Bank of New York Mellon Corporation (NYSE: BNY) reported third-quarter 2026 total revenue of $5,676 million — up 12% year over year — and net income applicable to common shareholders of $1,608 million, up 20%, or $2.34 per diluted share (+24%). Both engines fired: fee revenue of $4,078 million grew 12% on investment-services fees of $2,973 million (+15%) and foreign-exchange revenue of $198 million (+19%), while net interest income of $1,423 million grew 15%. Noninterest expense of $3,489 million grew just 8% — staff up 3% to $1,805 million even as professional services (+17%) and sub-custodian costs (+19%) ran hotter — delivering the operating leverage custody investors pay for: pretax income up 18% to $2,186 million at a 38.5% pretax margin, with ROTCE at 29.0% and ROE at 16.0%. The provision for credit losses was $1 million against a custody-sized loan book.
Scale keeps compounding underneath: assets under custody and administration reached $63.4 trillion (+10% on markets and inflows) with $2.2 trillion under management, and the balance sheet barely moved — deposits of $335,446 million (+1% year-to-date), loans up $8,548 million to $89,163 million, CET1 at 10.9%. Capital return did the talking: $1.4 billion to common shareholders ($436 million of dividends plus $937 million of buybacks) for an 86% year-to-date payout ratio, with treasury stock up $3,045 million over nine months. Sequentially the quarter cooled a touch — revenue flat to Q2's $5,698 million and the pretax margin off from 39.8% — but year-over-year this is the cleanest print among the custody banks.
The Headline Numbers
| Metric | Q3 2026 | Q3 2025 |
|---|---|---|
| Total revenue | $5,676M (+12%) | $5,081M |
| Fee revenue | $4,078M (+12%) | $3,637M |
| Net interest income | $1,423M (+15%) | $1,236M |
| Noninterest expense | $3,489M (+8%) | $3,236M |
| Pretax margin | 38.5% | 36.4% |
| Net income, to common | $1,608M (+20%) | $1,339M |
| Diluted EPS | $2.34 (+24%) | $1.89 |
| ROTCE | 29.0% | — |
| AUC/A | $63.4T (+10%) | $57.6T |
| Capital returned | $1.4B | — |
| CET1 ratio | 10.9% | — |
| Deposits* | $335,446M | $331,894M |
| Loans* | $89,163M | $80,615M |
* Balance-sheet figures as of September 30, 2026 versus December 31, 2025.
Nine-month revenue of $16,783 million is up 13% and nine-month net to common of $4,866 million is up 25% — the fee acceleration (services fees +13% nine-month) plus a net-interest tailwind make this a two-engine year, not a one-quarter print. The comparison to watch next is State Street, the only other pure custody bank, which reported EPS growth a full nine points faster this quarter on a smaller base.
Five years in the ledger: from rate victim to rate victor
The ledger runs FY2021–FY2025 plus this quarter. Revenue compounded from $15,931 million to $20,080 million while net to common rose 49% from $3,552 million to $5,306 million and diluted EPS ran from $4.14 to $7.40 — with the 2022 valley ($2,362 million, $2.90) carved by a $680 million goodwill impairment and AFS markdowns that pushed the AOCI loss to $5,966 million. Net interest income tells the rate story in one line: $2,618 million on a 0.68% margin in 2021, $4,944 million at 1.33% in 2025. Three artifacts reward a look: FY2023's $788 million of bank assessment charges (the FDIC special assessment), the FY2024 commercial-paper debut, and the dividend's 54% climb from $1.30 to $2.00. Every annual income statement and balance sheet, plus this quarter's supplement statements, is modeled as examinable Beancount below.
