Key financial results
- BNY reported third quarter earnings per share of $2.34, which grew by 24% year-over-year, or $2.37 excluding notable items.
Earnings per share of $2.34 grew by 24% year-over-year at a very solid pretax margin of 39%
- Firm-wide revenue reached $5.7 billion, up 12% year-over-year, driven by broad-based growth across business segments.
firm-wide revenue of $5.7 billion, up 12% year-over-year.
- Pretax margin expanded to 39% on the back of approximately 390 basis points of positive operating leverage.
generating approximately 390 basis points of positive operating leverage in the quarter
- Return on tangible common equity was strong at 29%.
with a strong return on tangible common equity of 29%.
- Expenses of $3.5 billion were up 8% year-over-year on both a reported basis and excluding notable items.
Expenses of $3.5 billion were up 8% year-over-year, both on a reported basis and excluding notable items.
- Net interest income was up 15% year-over-year to $1.4 billion, primarily driven by the reinvestment of investment securities at higher yields and balance sheet growth.
Net interest income was up 15% year-over-year, primarily driven by reinvestment of investment securities at higher yields as well as balance sheet growth
Business segment results
- Securities Services: Securities Services reported total revenue of $2.8 billion, up 15% year-over-year, with pretax income up 24% to $1 billion and a pretax margin of 36%.
Securities Services reported total revenue of $2.8 billion, up 15% year-over-year.
- Market and Wealth Services: Market and Wealth Services reported total revenue of $2 billion, up 12% year-over-year, with pretax income of $1 billion and a pretax margin of 51%.
In our Market and Wealth Services segment, we reported total revenue of $2 billion, up 12% year-over-year.
- Investment and Wealth Management: Investment and Wealth Management reported total revenue of $857 million, up 4% year-over-year, with pretax income up 11% to $205 million and a pretax margin of 24%.
Investment and Wealth Management reported total revenue of $857 million, up 4% year-over-year.
- AUC/A: Assets under custody and administration of $63.4 trillion were up 10% year-over-year, driven by higher market values, net client inflows, and net new business.
AUC/A of $63.4 trillion were up 10% year-over-year.
- AUM: Assets under management of $2.2 trillion were up 2% year-over-year.
Assets under management of $2.2 trillion were up 2% year-over-year
- Wealth Solutions: Wealth Solutions reported net new assets of $48 billion in the quarter, representing an annualized growth rate of 7%.
Net new assets were $48 billion in the quarter, representing an annualized growth rate of 7%
Capital allocation
- The Tier 1 leverage ratio for the third quarter was 5.7%, down 24 basis points sequentially, while the CET1 ratio was 10.9%, down 6 basis points quarter-over-quarter.
Our Tier 1 leverage ratio for the third quarter was 5.7%, down 24 basis points sequentially.
- BNY returned approximately $1.4 billion of capital to common shareholders during the third quarter, resulting in an 85% total payout ratio.
Over the course of the third quarter, we returned approximately $1.4 billion of capital to our common shareholders, resulting in an 85% total payout ratio in the quarter.
- Tier 1 capital decreased by $1.1 billion primarily due to capital returns through common stock repurchases and dividends, a decline in accumulated other comprehensive income, and a preferred stock redemption.
Industry trends and dynamics
- Management noted an overall constructive but uneven operating environment characterized by strong equity markets alongside persistent inflation, interest rate volatility, and geopolitical tensions.
- Equity markets remained supported by corporate earnings growth and investments in AI capabilities and related infrastructure.
Equity markets remain strong, supported by corporate earnings growth as well as continued investments in AI capabilities and related infrastructure.
Competitive landscape
- BNY marked its 15th consecutive quarter of year-over-year sales growth, securing new mandates from digital natives like Revolut and established institutions like ING.
the third quarter was our 15th consecutive quarter of year-over-year sales growth with new mandates, deepening existing relationships from digital native clients like Revolut, to established institutions such as ING
- In depository receipts, BNY won approximately two-thirds of capital raising mandates year-to-date.
in depository receipts, we have won approximately 2/3s of capital raising year-to-date
Macroeconomic environment
- Persistent inflation, a sharp repricing in interest rates, trade uncertainty, and geopolitical tensions created volatility in fixed income markets.
At the same time, persistent inflation, a sharp repricing in interest rates, geopolitical tensions and trade uncertainty contributed to volatility in fixed income markets
Growth opportunities and strategies
- BNY announced the launch of global digital transfer agency capabilities and tokenized money market fund offerings on chain with partners like Baillie Gifford and BlackRock.
In July, we announced the launch of our global digital transfer agency capabilities, which extend our leading position in traditional fund servicing to the on chain world
- The company continues to embed its enterprise AI platform, Eliza, across operations to generate internal capacity, improve products, and create new client solutions.
That's why we've built our enterprise AI platform, Eliza, and invested in our people so we can develop capabilities, govern them consistently and put them to work at scale.
Financial guidance and outlook
- BNY raised its full year 2026 operating leverage expectation to nearly 500 basis points, up from 400 basis points previously guided.
We now expect to generate nearly 500 basis points of positive operating leverage in 2026, up from 400 basis points just 3 months ago
- Full year 2026 total revenue growth, excluding notable items, is expected to land around the middle of a 12% to 13% range.
- Full year 2026 net interest income is expected to be up 15% year-over-year.
And that includes our current expectation for full year 2026 net interest income to be up 15% year-over-year.
- Full year 2026 expense growth, excluding notable items, was increased by 100 basis points to around the middle of a 7% to 8% range.
Therefore, we are increasing our expectation for full year 2026 expense growth excluding notable items by 100 basis points to somewhere around the middle of a 7% to 8% range.
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $5.7 billion | up 12% YoY |
| Earnings per share | $2.34 | up 24% YoY |
| Pretax margin | 39% | Not stated |
| Return on tangible common equity | 29% | Not stated |
| Assets under custody/administration | $63.4 trillion | up 10% YoY |
| Assets under management | $2.2 trillion | up 2% YoY |
How management sounded
Positive (+45 on our -100 to +100 scale). Management highlighted 15 consecutive quarters of sales growth, raised full-year guidance, and expressed strong conviction in their platform operating model and AI strategy. Management sounded more upbeat than on 62% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- The impact of market volatility on fee revenue and client activity in Q4.
- The continued integration of AI capabilities and their translation into tangible productivity gains.
- The evolution of the competitive landscape in Wealth Solutions.
Earlier calls
- Q2 2026 (Jul 15, 2026), tone Positive: BNY reported strong second quarter results with earnings per share up 27% and record revenue of $5.7 billion, driven by broad-based business growth.
