The Bank of New York Mellon(BK) - 2025 Q4 - Annual Results

Financial Performance - Fee and other revenue for Q4 2025 was $3,833 million, a 5% increase from $3,653 million in Q4 2024[4] - Net interest income increased to $1,346 million in Q4 2025, up 9% from $1,194 million in Q4 2024[4] - Total revenue reached $5,179 million in Q4 2025, representing a 7% increase compared to $4,847 million in Q4 2024[4] - Net income for Q4 2025 was $1,469 million, a 27% increase from $1,157 million in Q4 2024[4] - Diluted earnings per common share rose to $2.02 in Q4 2025, a 31% increase from $1.54 in Q4 2024[4] - Total revenue for FY25 increased by 8% to $20,080 million compared to FY24's $18,619 million[7] - Net income applicable to common shareholders rose by 22% to $5,306 million in FY25 from $4,336 million in FY24[7] - Earnings per common share (basic) increased by 28% to $7.47 in FY25 compared to $5.84 in FY24[7] - Total revenue for FY25 reached $9,730 million, representing a 9% increase compared to FY24's $8,916 million[15] - Total revenue for Q4 2025 was $1,805 million, an increase of 8% compared to Q4 2024, and FY 2025 total revenue reached $7,000 million, up 12% from FY 2024[21] Assets and Management - Assets under custody and/or administration (AUC/A) increased to $59.3 trillion, a 14% increase from $52.1 trillion in Q4 2024[4] - Assets under management (AUM) grew to $2.2 trillion, a 7% increase from $2.0 trillion in Q4 2024[4] - Total assets reached $472,300 million as of December 31, 2025, up from $416,064 million a year earlier[8] - Deposits grew to $331,894 million, reflecting an increase from $289,524 million in the previous year[8] - Total assets as of Q4 2025 amounted to $451,213 million, up from $437,491 million in Q3 2025[12] - Total assets under management (AUM) increased to $2,178 billion in Q4 25, reflecting a 2% growth from 3Q25 and a 7% increase from 4Q24[29] - Wealth Management client assets rose to $350 billion in 4Q25, a 1% increase from 3Q25 and a 7% increase year-over-year[29] Revenue Sources - Investment services fees for Q4 2025 were $2,632 million, up 8% from $2,438 million in Q4 2024[7] - Total fee revenue for Q4 2025 was $3,698 million, reflecting a 2% increase from Q3 2025 and a 5% increase year-over-year from Q4 2024[9] - Total investment and other revenue for FY 2025 reached $757 million, a significant increase compared to $687 million in FY 2024[9] - Total fee revenue for Q4 2025 was $1,227 million, an increase of 5% compared to Q4 2024, with FY 2025 total fee revenue at $4,816 million, up 8% year-over-year[21] - Investment management and performance fees for the Investment and Wealth Management segment were $807 million in Q4 2025, consistent with $809 million in Q4 2024, showing stability in fee income[46] Expenses and Profitability - Total noninterest expense increased by 3% to $13,054 million in FY25 compared to $12,701 million in FY24[7] - The pre-tax operating margin improved to 34% in Q4 25, up from 28% in Q4 24, reflecting enhanced operational efficiency[15] - Noninterest expense for 4Q25 was $703 million, a 10% increase from 3Q25 and a 3% decrease compared to FY24[25] - The pre-tax operating margin for Q4 2025 was 49%, consistent with the previous quarter and an improvement from 46% in FY 2024[21] - The pre-tax operating margin for the Investment and Wealth Management segment was 17% in Q4 2025, down from 20% in Q4 2024, indicating a decline in operational efficiency[46] Capital and Ratios - The common equity tier 1 (CET1) ratio was 11.9% at the end of Q4 2025, up from 11.2% in Q4 2024[4] - CET1 capital increased to $21,087 million as of December 31, 2025, up from $20,645 million in the previous quarter, reflecting a 2.1% growth[14] - The CET1 ratio under the Standardized Approach improved to 11.9% as of December 31, 2025, compared to 11.7% in the previous quarter[14] - The average tangible common shareholders' equity was $21,427 million for Q4 2025, reflecting a strong capital position[43] - The Bank of New York Mellon Corporation's common shareholders' equity at period end increased to $39,477 million as of December 31, 2025, up from $36,975 million a year earlier, reflecting a growth of 6.8%[45] Market Performance - The market capitalization of the company reached $79,897 million, an increase from $55,139 million in Q4 2024[4] - The market value of securities on loan reached $604 billion at the end of 4Q25, a 24% increase from $488 billion in the same period last year[17] Other Key Metrics - The average liquidity coverage ratio remained stable at 112% across the last four quarters, indicating strong liquidity management[14] - Daily average revenue trades (DARTs) on the U.S. platform were 285,000 in Q4 2025, a 12% increase from Q4 2024[22] - The company experienced net outflows of $3 billion in total AUM during 4Q25[29] - The allowance for loan losses decreased to $(245) million from $(294) million year-over-year[8] - The allowance for credit losses at the end of the period was $344 million, with a loan loss allowance of 0.30% of total loans[36]