BNY Mellon Q3 2026 Earnings Beat Estimates With Revenue Up 12% and Adjusted EPS Up 24% Year Over Year

Bank of New York Mellon reported third-quarter 2026 results before the market open on October 15, delivering beats on both the top and bottom lines. Revenue rose 12% year over year to $5.68 billion, topping the $5.55 billion consensus estimate by roughly $130 million. Adjusted EPS came in at $2.37, beating the $2.27 estimate by $0.10 and up 24% from a year earlier. GAAP EPS was $2.34, also up 24% year over year, with net income attributable to common shareholders reaching $1.61 billion compared with $1.34 billion in Q3 2025.

Fee revenue grew 12% year over year to $4.08 billion, while net interest income rose 15% to $1.42 billion and the net interest margin improved 12 basis points to 1.43%. The pre-tax margin reached 38.5%. By segment, Securities Services revenue climbed 15% to $2.82 billion, Market and Wealth Services rose 12% to $1.98 billion, and Investment and Wealth Management grew 4% to $857 million. Noninterest expenses increased a more modest 8% to $3.49 billion, with expense growth running well below revenue growth and supporting operating leverage.

Assets under custody and administration stood at $63.4 trillion at quarter-end, with assets under management at $2.2 trillion. Return on tangible common equity reached 29.0% and return on equity was 16.0%. The CET1 capital ratio was 10.9%, average deposits were $311 billion, and the provision for credit losses was just $1 million. The company paid $436 million in dividends and repurchased $937 million in shares, bringing the year-to-date total payout ratio to 86%. Book value per share came in at $58.43, below the $59.97 estimate. BNY also declared a quarterly common dividend of $0.63 per share.

Shares rose approximately 2.6% in premarket trading following the report. At least one analyst firm upgraded the stock to buy following a recent pullback, citing roughly 10% upside and arguing that concerns about AI-driven deposit sorting risk are overstated given BNY's predominantly institutional client base.