BNY Reports Strong Q1 Earnings, Still Sees Trouble Ahead In Uncertain Economy

Bank of New York Mellon Corporation BK shares are trading lower in Friday’s premarket session after the company reported its first-quarter 2025 results.

The firm reported first-quarter adjusted earnings per share of $1.58 (+26% YoY), beating the street view of $1.51.

Quarterly revenue of $4.972 billion, an increase of 6% year-over-year, surpassed the analyst consensus of $4.771 billion.

Fee revenue in the quarter grew 3% YoY to $3.403 billion. Net interest income rose 11% YoY, mainly due to reinvesting maturing securities at higher yields, though partially offset by shifts in the deposit mix.

Noninterest expense grew 2%, driven mainly by increased investments and employee merit raises, partially offset by efficiency-related cost savings.

Related: Bank of New York Mellon Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

The provision for credit losses totaled $18 million for the quarter, reflecting increased reserves related to commercial real estate exposure.

The average deposits totaled $283 billion, up 1% year over year but down 1% from the prior quarter. The Tier 1 leverage ratio rose 35 basis points yearly to 6.2%.

Assets under custody and/or administration increased by 9% due to client inflows and market gains. Assets under management were flat, with market gains offset by net outflows.

BNY returned $1.1 billion to common shareholders year-to-date, including $343 million in dividends and $746 million in share repurchases, resulting in a total payout ratio of 95%.

As of March 31, BNY CET1 capital stood at $19.5 billion and Tier 1 capital at $24.8 billion, rising from December 31, 2024. The increases were driven by earnings and higher accumulated other comprehensive income, partially offset by capital returned via dividends and share repurchases.

“Looking ahead, we are prepared for a wide range of macroeconomic and market scenarios as the outlook for the operating environment is becoming more uncertain. Our work to operate BNY as a more platforms-oriented company, combined with our highly capitalized, liquid and lower credit risk balance sheet, positions us to manage dynamically and act as a source of strength as we support our clients in navigating the current environment,” BNY Mellon CEO Robin Vince said.

Dividend: BNY declared a common stock dividend of 47 cents per share, payable on May 2, to shareholders of record as of the close of business on April 21.

Price Action: BK shares are trading lower by 1.16% to $75.72 premarket at the last check Friday.

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