BNY Mellon Earnings Rise on Digital Push

Core Insights - The Bank of New York Mellon Corporation reported Q2 2025 earnings per share of $1.93, a 27% increase year over year, with total revenue exceeding $5 billion for the first time, marking a 9% year-over-year growth [1] - The bank's pretax margin improved to 37%, and return on tangible common equity (ROTCE) reached 28%, indicating effective transformation strategies [1] Digital Assets and Platform Innovation - BNY Mellon secured stablecoin custody mandates with Societe Generale and Ripple, showcasing its growing presence in digital finance infrastructure [3][5] - The bank offers a comprehensive range of digital asset services, including issuance and custodianship, and operates bitcoin custody services in 100 markets globally [4] Capital Management - BNY Mellon maintained an 11.5% CET1 ratio and returned $1.2 billion to shareholders, achieving a 92% total payout ratio year-to-date, reflecting disciplined capital management [6][7] - The Federal Reserve's 2025 stress tests confirmed the bank's stress capital buffer remains at the regulatory floor of 2.5% [6] Operating Model Transformation - Fifty percent of BNY's workforce is now operating within a new platform model, contributing to 500 basis points of positive operating leverage in Q2 2025 [8] - The adoption of the Eliza AI platform is expected to enhance efficiency and support new solution development for clients [9][10] Future Outlook - Management raised the forecast for full-year 2025 net interest income to high single-digit percentage growth and reaffirmed expectations for solid fee revenue growth [11] - BNY Mellon plans to return approximately 100% of 2025 earnings through dividends and buybacks [11]