The Bank of New York Mellon Corp. (NYSE: BK) reported third-quarter earnings that exceeded expectations, boosted by rising global stock markets and higher asset valuations that strengthened fee income.
The world’s largest custodian bank said assets under custody and administration surged 11% year-over-year to $57.8 trillion as of September 30, driven by client inflows and elevated market levels.
After volatility earlier this year following President Donald Trump’s tariff announcement, U.S. equities rallied to record highs, with the S&P 500 up more than 13% year-to-date. This market strength, alongside a weaker dollar, contributed to a 7% increase in BNY’s fee revenue to $3.64 billion.
Total revenue climbed 9% to $5.08 billion, topping analyst expectations of $4.98 billion, according to Bloomberg data. Net income attributable to common shareholders rose 21% to $1.34 billion. Adjusted diluted earnings per share came in at $1.91, above the consensus estimate of $1.77.
Provisions for credit losses were a net benefit of $7 million, primarily reflecting an improved macroeconomic outlook that was partly offset by higher reserves for commercial real estate exposure.
The bank said strong asset servicing demand and growth in investment management fees continued to support performance across its core businesses.
