BNY Q3 earnings beat, driven by fee revenue growth, solid NII

BNY (BNY), formerly known as Bank of New York Mellon, posted Q3 earnings and revenue that beat Wall Street consensus estimates, driven by strong year-over-year growth in its securities services and market and wealth services businesses. Total fee revenue rose both sequentially and from a year ago.

Q3 non-GAAP EPS of $2.37, beating the average analyst estimate of $2.26, fell from $2.46 in Q2 and rose from $1.91 in last year’s Q3.

Revenue of $5.68B, topping the $5.56B consensus, decreased from $5.70B in the prior quarter and increased $5.08B in the year-ago period.

"Client demand continued to grow, underpinned by our ongoing work to unlock the value inherent in the combination of BNY’s businesses enabled by our platform operating and commercial models," said CEO Robin Vince. "Sales and pipelines remained very healthy across products, client segments, and regions, and we launched several solutions during the quarter that are meeting emerging needs in the market."

Fee revenue of $4.08B, exceeding the $3.97B Visible Alpha estimate, rose from $4.04B in the previous quarter and $3.64B a year ago.

Still, BNY (BNY) stock dropped 1.6% in premarket trading.

Assets under custody/administration of $63.4T at the end of Q3 rose 1% Q/Q and 10% Y/Y.

Net interest income (FTE) of $1.42B, beating the Visible Alpha consensus of $1.41B, dropped from $1.45B in Q2 and grew from $1.24B in last year’s Q3.

Noninterest expense of $3.49B grew from $3.44B in the prior quarter and $3.24B a year ago.

Q3 adjusted pretax operating margin of 38.9% slipped from 39.9% in Q2 and improved from 37.1% in Q3 2025.

Securities services total revenue of $2.82B was essentially flat Q/Q and increased 15% Y/Y, as fee revenue of $1.96B increased 1% Q/Q and 18% Y/Y.

Market and wealth services revenue of $1.98B grew 1% Q/Q and 12% Y/Y as fee revenue increased 2% Q/Q and 10% Y/Y to $1.35B.

Investment and wealth management revenue of $857M slipped 1% Q/Q and increased 4% Y/Y, with fee revenue of $790M rising 1% Q/Q and 2% Y/Y.