Bank of New York Mellon tops Q3 profit estimates as revenues hit record high

16th Oct 2025 12:03

(Sharecast News) - Shares in Bank of New York Mellon Corp were falling in pre-market trade on Thursday despite the financial services group comfortably topping analysts' estimates with record revenues and strong profit growth in the third quarter.

Revenues over the three months to 30 September totalled a record $5.08bn, up 9% year-on-year and ahead of the consensus estimate of $4.97bn.

The top line was supported by an 18% jump in net interest income to $1.24bn, due to the reinvestment of maturing investment securities at higher yields and balance sheet growth.

The company also reported a 7% rise in total fee revenues to $3.64bn, driven by net new business, higher client activity and market values, as well as the positive impact of a weaker US dollar.

Chief executive Robin Vince said results were boosted by "broad-based growth across the platforms that make up our Securities Services and Market and Wealth Services segments, and we continued to drive significant positive operating leverage".

Net income was 21% ahead of last year at $1.34bn, equating to diluted earnings per share of $1.88, up 25% year-on-year at ahead of the $1.77 consensus estimate.

The bottom line was strengthened by a solid increase in the pre-tax operating margin to 36% from 33% a year earlier.

The stock, which has jumped 42% so far this year, was trading 2% lower at $106.80 in pre-market trading.