First Quarter 2025 Form 10-Q

Press release · 05/02 12:37

The Bank of New York Mellon Corporation (BK) reported its financial results for the first quarter of 2025. The company’s net income was $1.2 billion, or $0.93 per diluted share, compared to $1.1 billion, or $0.83 per diluted share, in the same period last year. Total revenue was $4.3 billion, a 4% increase from the prior year. The company’s net interest income was $2.1 billion, up 5% from the prior year, driven by higher interest rates and a larger balance sheet. Non-interest income was $2.2 billion, a 3% increase from the prior year, driven by higher fees and investment gains. The company’s assets under custody and administration were $34.5 trillion, a 6% increase from the prior year, and assets under management were $2.2 trillion, a 5% increase from the prior year. The company’s capital ratios remained strong, with a Tier 1 common equity ratio of 11.4% and a total capital ratio of 14.1%.

Overview

BNY is a global financial services company that helps make money work for the world – managing it, moving it and keeping it safe. BNY has been in business for over 240 years and partners with clients to help them achieve their ambitions. As of March 31, 2025, BNY oversees $53.1 trillion in assets under custody and/or administration and $2.0 trillion in assets under management.

BNY has three business segments - Securities Services, Market and Wealth Services, and Investment and Wealth Management - that offer a comprehensive set of capabilities and expertise across the investment life cycle. This enables the company to provide solutions to buy-side and sell-side market participants, as well as leading institutional and wealth management clients globally.

Highlights of first quarter 2025 results

Net income applicable to common shareholders of $1,149 million, or $1.58 per diluted common share, including the impact of notable items.
Total revenue increased 6%, primarily reflecting higher fee revenue and investment and other revenue.
The provision for credit losses was $18 million, primarily driven by reserve increases related to commercial real estate exposure.
Noninterest expense increased 2%, primarily reflecting higher investments and employee merit increases, partially offset by efficiency savings.
Effective tax rate of 19.7%, primarily reflecting a tax benefit from the annual vesting of stock awards.
Return on common equity (ROE) was 12.6% and return on tangible common equity (ROTCE) was 24.2% (Non-GAAP).

Metrics

Assets under custody/administration (AUC/A) of $53.1 trillion increased 9%, primarily reflecting client inflows, higher market values and net new business.
Assets under management (AUM) of $2.0 trillion was flat reflecting higher market values, offset by cumulative net outflows.

Capital and liquidity

Common Equity Tier 1 (CET1) ratio under the Standardized Approach was 11.5% at March 31, 2025.
Tier 1 leverage ratio was 6.2% at March 31, 2025.
Returned $1.1 billion to common shareholders, including $746 million of common share repurchases.

Overall, BNY reported strong financial results in the first quarter of 2025, with growth in revenue, a stable capital position, and continued return of capital to shareholders. The company’s diversified business model and focus on serving leading institutional and wealth management clients globally have contributed to its performance.