Bank of New York Mellon (NYSE:BK) reported stronger-than-expected results for the fourth quarter of 2025 on Tuesday, supported by higher net interest income and solid growth in assets under custody. Shares were little changed following the update, edging down just 0.01%.
The bank posted adjusted earnings per share of $2.08, comfortably ahead of the $1.99 consensus estimate. Revenue came in at $5.18 billion, slightly above expectations of $5.15 billion and up 7% from the same period a year earlier.
Net interest income increased 13% year on year to $1.35 billion, driven by “the continued reinvestment of maturing investment securities at higher yields and balance sheet growth,” although this was partly offset by pressure on deposit margins. Fee revenue also rose, increasing 5% compared with the fourth quarter of 2024.
Assets under custody and/or administration climbed 14% year on year to $59.3 trillion, while assets under management grew 7% to $2.2 trillion, reflecting net inflows and market appreciation.
“2025 was another successful year for BNY. We delivered record net income of $5.3 billion on record revenue of $20.1 billion and generated an ROTCE of 26%,” said CEO Robin Vince. “On the back of eight consecutive quarters of positive operating leverage, we grew earnings per share by 28% year-over-year and returned $5.0 billion of capital to our shareholders.”
For the full year 2025, BNY Mellon reported adjusted earnings per share of $7.50, up 24% from 2024. Total revenue reached a record $20.1 billion, representing an 8% increase year on year.
The bank also strengthened its capital position, with its CET1 ratio improving to 11.9% from 11.2% a year earlier.