BNY · Bank of New York Mellon Corp

The Bank of New York Mellon Corporation delivered a strong start to 2026, reporting record revenue of $5.4 billion, a 13% increase year-over-year. This broad-based growth was driven by higher client activity, net new business, and favorable market conditions across both its Securities Services and Market and Wealth Services segments. Fee revenue increased 11% to $3.8 billion, while net interest income grew 18% to $1.37 billion, benefiting from the reinvestment of securities at higher yields and balance sheet growth, despite some deposit margin compression. The company achieved significant operating leverage, with expenses growing only 5% compared to the 13% revenue growth, resulting in over 800 basis points of positive operating leverage and expanding the pre-tax margin to 37% from 32% in the prior year. Profitability metrics strengthened considerably, with ROTCE reaching 29.3% and ROE climbing to 16.1%. The provision for credit losses was a benefit of $7 million, a notable improvement from the prior year, primarily due to improvements in commercial real estate exposure. Capital return remains a priority, with $1.4 billion returned to shareholders in the quarter. Signaling confidence in its capital position and earnings trajectory, the Board authorized a new $10 billion common share repurchase program. The company also highlighted its strategic progress in AI adoption, with approximately 50% of employees now daily users of AI tools and over 220 enterprise AI solutions in production, contributing to productivity gains and revenue per employee growth.