BNY Mellon Earnings Rise on Digital Push

The Bank of New York Mellon Corporation (NYSE:BK) reported Q2 2025 results on July 15, 2025, delivering earnings per share of $1.93, up 27% year over year, and total revenue surpassing $5 billion for the first time, up 9% year over year.

Pretax margin improved to 37%, return on tangible common equity (ROTCE) reached 28%, and the company achieved approximately 500 basis points of positive operating leverage, highlighting the effectiveness of its ongoing transformation strategy.

The earnings call with management reveals critical insight into BNY's digital asset initiatives, disciplined capital management, and platform expansion -- all with lasting significance for long-term investors.

Digital Assets and Platform Innovation Establish New Competitive Advantage

During Q2 2025, BNY Mellon secured high-profile stablecoin custody mandates with Societe Generale (announced in June 2025) and Ripple (announced in July 2025), demonstrating expanding traction in digital finance infrastructure.

The bank continues to leverage its early investments in digital assets, offering a range of services from issuance to custodianship, and operates bitcoin custody services natively, reaching 100 markets globally through its buy-side trading solutions.

"Last month, Societe Generale selected BNY to act as reserve custodian for their first USD stablecoin in Europe. And last week, Ripple announced that BNY will act as primary custodian of Ripple's US stablecoin reserves. Today, BNY is a leader in servicing the growing stablecoin market, enabling companies to create and use stablecoins by providing wide-ranging services from issuance to ongoing operations."
— Robin Vince, Chief Executive Officer

BNY is providing long-term resilience and expanding its addressable market among institutional clients seeking regulated solutions.

Disciplined Capital Management Preserves Flexibility Amid Strong Returns

BNY ended the quarter with an 11.5% CET1 (Common Equity Tier 1) ratio, unchanged sequentially, and returned $1.2 billion to shareholders, achieving a 92% total payout ratio year-to-date, underscoring consistent capital discipline. The Federal Reserve's 2025 stress tests confirmed BK's stress capital buffer remains at the 2.5% regulatory floor, and the board declared a 13% dividend increase following the results.

"With regards to our second quarter results, our Tier 1 leverage ratio was 6.1%, down 17 basis points sequentially. Tier 1 capital increased by $689 million, primarily reflecting capital generated through earnings and a net increase in accumulated other comprehensive income, partially offset by capital returns through common stock repurchases and dividends. Average assets increased primarily driven by deposit growth. Our CET1 ratio at the end of the quarter was 11.5%, unchanged from the prior quarter. Over the course of the second quarter, we returned $1.2 billion of capital to our common shareholders, resulting in a 92% total payout ratio year to date."
— Dermot McDonogh, Chief Financial Officer

Operating Model Transformation Drives Enduring Efficiency and Organic Growth

Fifty percent of BNY's workforce now operates within its new platform operating model; this reorganization has already contributed to 500 basis points of positive operating leverage in Q2 2025. In parallel, widespread adoption of the Eliza AI platform among employees and initial deployment of digital employees are cited as foundational for future efficiency gains and new solution development for clients.

"With more than half of our people at BNY working in the model today, we remain on track to complete our phased transition into the platform's operating model by this time next year. Already, we are starting to see the impact of this new way of working, enabling our people to launch more new solutions, deploy more code releases, and come together better than ever before to support our clients."
— Robin Vince, Chief Executive Officer

The platform operating model and AI adoption are lowering the annual expense growth trajectory—guided at approximately 3% for full-year 2025 (excluding notable items)—while embedding scalable innovation capacity, which management expects will benefit future growth.

Looking Ahead

Management raised its forecast for full-year 2025 net interest income to high single-digit percentage growth and reaffirmed expectations for solid fee revenue growth, with expenses (excluding notable items) guided to rise approximately 3%. The effective tax rate is projected at 22% to 23% for the full year.

BNY Mellon plans to return roughly 100% of 2025 earnings via dividends and buybacks.

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