The Bank of New York Mellon(US:BK)2025-10-31 11:02Financial Performance - Net income applicable to common shareholders for Q3 2025 was $1.34 billion, or $1.88 per diluted share, compared to $1.11 billion, or $1.50 per diluted share in Q3 2024, reflecting a notable increase [20]. - Total revenue increased by 9% year-over-year, driven by a 7% increase in fee revenue and an 18% increase in net interest income [24]. - Total revenue for Q3 2025 was $2.5 billion, an 11% increase year-over-year but a 1% decrease from Q2 2025 [81]. - Year-to-date 2025 total revenue was $7.2 billion, a 10% increase compared to the same period in 2024 [87]. - Year-to-date 2025 total revenue was $5.2 billion, a 13% increase compared to the same period in 2024 [99]. - Total revenue for year-to-date 2025 was $2.4 billion, a decrease of 4% compared to the same period in 2024 [113]. Assets and Liabilities - Total assets increased to $455 billion as of September 30, 2025, up from $416 billion at December 31, 2024 [130]. - Total liabilities amounted to $393,023 million as of September 30, 2025, with total shareholders' equity at $43,974 million [53]. - Total available funds were $164 billion, representing 36% of total assets as of September 30, 2025 [132]. - Total deposits increased by 9% to $314.7 billion as of September 30, 2025, compared to $289.5 billion at December 31, 2024 [194]. Revenue Breakdown - Asset Servicing revenue was $1.9 billion, up 11% from Q3 2024 and 2% from Q2 2025, primarily due to higher client activity and market values [82]. - Issuer Services revenue totaled $544 million, a 10% increase from Q3 2024 but a 10% decrease from Q2 2025, reflecting higher Depositary Receipts revenue [83]. - Treasury Services revenue increased to $510 million, reflecting a 20% rise year-over-year and a 4% increase quarter-over-quarter [96]. - Investment Management revenue was $546 million, down 4% year-over-year and up 3% sequentially [110]. - Wealth Management revenue reached $278 million, decreasing 1% compared to Q3 2024 and increasing 3% from Q2 2025 [110]. Expenses - Noninterest expense increased by 4%, attributed to higher investments and employee merit increases, partially offset by efficiency savings [25]. - Noninterest expense for Q3 2025 was $1.7 billion, a 6% increase compared to Q3 2024 and a 2% increase from Q2 2025, driven by higher investments and severance expenses [85]. - Year-to-date noninterest expense for 2025 increased by 4% compared to the first nine months of 2024, totaling $9,694 million, driven by higher investments and adjustments to the FDIC special assessment [60]. - Noninterest expense decreased by 4% to $2.0 billion, driven by lower revenue-related expenses and efficiency savings [114]. Credit and Loans - The allowance for credit losses decreased to $368 million at Sept. 30, 2025, from $392 million at Dec. 31, 2024, with a provision for credit losses of $7 million in Q3 2025 [186]. - The allowance for loan losses as a percentage of total loans was 0.36% at Sept. 30, 2025, down from 0.41% at Dec. 31, 2024 [185]. - Net long-term strategy outflows totaled $33 billion in Q3 2025, primarily driven by liability-driven investments, equity, and index investments [108]. - Average loans for Q3 2025 were $46.3 billion, a 5% increase compared to Q2 2025 [95]. Market and Economic Factors - The effective tax rate for Q3 2025 was 21.3% [25]. - The company expects that a 5% change in global equity markets would impact fee revenue by less than 1% and diluted earnings per share by $0.05 to $0.08 [72]. - The company experienced a favorable impact from higher market values and a weaker U.S. dollar, partially offsetting revenue declines [110]. Employee and Operational Metrics - Full-time employees at period-end decreased to 49,200 in Q3 2025, down 6% from 52,600 in Q3 2024 [57]. - The company recorded a 10% increase in software and equipment expenses year-to-date, totaling $1,582 million compared to $1,442 million in the previous year [57].