The Bank of New York Mellon Corporation (“BNY”) (NYSE: BK) has reported its financial results for the first quarter of 2025. The bank delivered a solid performance with total revenue of $4.8 billion, representing a 6% increase year-over-year. The diluted earnings per common share stood at $1.58, marking a 26% increase over the same period last year.
In terms of financial highlights, total fee revenue decreased by 3% to $3.403 billion, while investment and other revenue increased to $230 million. Net interest income experienced a 11% growth, reaching $1.159 billion. Noninterest expense increased by 2% to $3.252 billion. The provision for credit losses stood at $18 million. Net income applicable to common shareholders increased by 2% to $1.149 billion, with diluted earnings per share growing by 3% to $1.58.
Key financial ratios and metrics also showed positive trends. The pre-tax operating margin reached 32%, up from 29% in the same period last year. Return on equity (ROE) increased to 12.6% from 10.7%, and return on tangible common equity (ROTCE) increased to 24.2% from 20.7%. The tier 1 leverage ratio and CET1 ratio also showed improvements.
The bank returned $1.1 billion of capital to common shareholders, including $343 million in dividends and $746 million in share repurchases, resulting in a total payout ratio of 95% year-to-date.
The securities services business segment saw total revenue decrease by 1% to $4.792 billion, with an improvement in pre-tax operating margin to 31% from 28%. The investment and wealth management business segment reported a total revenue decrease of 11% to $779 million, with a decrease in pre-tax operating margin to 8% from 20%.
Following these announcements, the company's shares moved 2.2%, and are now trading at a price of $78.26. If you want to know more, read the company's complete 8-K report here.
