The Bank of New York Mellon Corporation

What they do

BNY operates through three principal business segments: Securities Services, Market and Wealth Services, and Investment and Wealth Management, plus an Other segment for corporate treasury, tax credit investments, insurance, derivatives and trading, and business exits. Its two main U.S. bank subsidiaries are The Bank of New York Mellon, a New York state-chartered bank, and BNY Mellon, N.A., a national bank, supplemented by four other U.S. trust companies and non-U.S. banking subsidiaries such as BNY SA/NV in continental Europe. Services include trust and custody, asset servicing, issuer services, payments, trade and clearance, collateral management, and investment management.

Revenue drivers

• Securities Services — Houses Asset Servicing and Issuer Services within The Bank of New York Mellon, providing custody, asset servicing, and issuer-related services; it is one of three principal segments.
• Market and Wealth Services — Includes Payments, Trade and Clearance and Collateral Management, plus Wealth Management and certain Pershing activities; it is one of three principal segments.
• Investment and Wealth Management — Includes the bank-advised business of Investment Management and Wealth Management activities; most Investment Management and Pershing businesses are direct or indirect non-bank subsidiaries.
• Total fee revenue — Fee revenue was $4.036 billion in 2Q26, up 11% year-over-year and 7% sequentially, representing the largest component of total revenue.

Recent performance

In 2Q26, BNY reported total revenue of $5.698 billion, up 13% year-over-year and 5% sequentially, with fee revenue of $4.036 billion and net interest income of $1.446 billion. Diluted EPS was $2.45, up 27% year-over-year and 9% sequentially, and net income applicable to common shareholders was $1.696 billion, up 22% year-over-year. Pre-tax operating margin was 39.8%, ROE was 17.2%, and ROTCE was 31.3%. Assets under custody and/or administration were $62.6 trillion, up 12% year-over-year, and assets under management were $2.2 trillion, up 6%. The company returned $1.5 billion of capital to common shareholders, including $371 million of dividends and $1.1 billion of share repurchases.

Strategy

Management attributes 2Q26 results to broad-based growth across Securities Services, Market and Wealth Services, and Investment and Wealth Management, supported by a new commercial and platform operating model. CEO Robin Vince cited robust organic growth, continuous investments, and strategic actions to deliver differentiated client solutions, along with another quarter of record sales. The 10-K describes BNY as a global financial services platforms company with $59.3 trillion in assets under custody and/or administration as of Dec. 31, 2025. The company operates under U.S. and non-U.S. bank regulatory frameworks, including Federal Reserve oversight and European Central Bank supervision of BNY SA/NV.

Risks

• Regulatory and supervisory risk — BNY's bank and trust subsidiaries are subject to multiple U.S. and non-U.S. regulators, including the Federal Reserve and, for BNY SA/NV, the European Central Bank and Belgian authorities.
• International operations risk — BNY SA/NV operates branches across multiple European countries including Amsterdam, Copenhagen, Dublin, Frankfurt, Luxembourg, Madrid, Milan, Paris, and Wroclaw.
• Credit and market risk — The company reports a provision for credit losses and holds a securities portfolio, corporate treasury activities, and derivatives and other trading activity within its Other segment.
• Capital and payout risk — BNY returned $1.5 billion of capital to common shareholders in 2Q26, with a total payout ratio of 87% year-to-date, while its Tier 1 leverage ratio declined to 5.9% from 6.1% a year earlier.

Outlook

CEO Robin Vince stated that halfway through the year BNY's performance reflects strong momentum and that teams remain focused on delivering more for clients and shareholders. Management highlighted robust organic growth, record sales, and the impact of continuous investments and strategic actions. No specific numeric guidance for future periods is provided in the excerpted earnings release.