BNY Q4 Earnings Beat Estimates on Y/Y Growth in NII & Fee Income

Core Insights - The Bank of New York Mellon Corporation (BK) reported fourth-quarter 2025 adjusted earnings of $2.08 per share, exceeding the Zacks Consensus Estimate of $1.97, reflecting a 20.9% increase from the prior-year quarter [1][9] Financial Performance - The increase in earnings was primarily driven by a rise in fee revenues and net interest income (NII), which was $1.35 billion, up 12.7% year over year [2][5] - Total quarterly revenues rose 6.8% year over year to $5.18 billion, surpassing the Zacks Consensus Estimate of $5.12 billion [4] - For the full year 2025, total revenues reached $20.08 billion, a 7.8% increase year over year, also exceeding the Zacks Consensus Estimate of $20 billion [4] Asset Management - As of December 31, 2025, assets under management (AUM) were $2.2 trillion, up 7% year over year, while assets under custody and/or administration (AUC/A) increased to $59.3 trillion, a 13.8% rise year over year [7][9] Credit Quality - The allowance for loan losses as a percentage of total loans decreased to 0.30%, down 11 basis points from the prior-year quarter, with non-performing assets at $143 million, down 20.1% year over year [8] Capital Position - The common equity Tier 1 ratio improved to 11.9% as of December 31, 2025, up from 11.2% a year earlier, and the Tier 1 leverage ratio increased to 6% from 5.7% [11] Share Repurchase - In the reported quarter, the company repurchased shares worth $1 billion [12] Strategic Outlook - The company's global expansion efforts and strong balance sheet are expected to support continued top-line growth, although there are concerns regarding concentration risk due to reliance on fee-based revenues and rising expenses [13]