# BNY (BNY)

Sector: Custody banks

| Field | Value |
|---|---|
| Price | $151.23 |
| Market cap | $102B |
| Intrinsic value source | Analysts |
| Data as of | 2026-11-10 |
| Next earnings | 2027-01-15 (estimate) |

Analysts: Leaning bullish

Picks: Research only

Discount category: Far above intrinsic value

## In short

Investors pay a premium for BNY's fast rise in returns, and only fee growth with stable net interest income when rates fall can earn it.

## Themes and gap

- Themes: Interest rates (interest-rates)
- Gap type: Slow (slow)
- Why: The Q4 2026 report in mid-January 2027 is the next test, but the premium needs high returns that hold when interest rates fall, which takes several years to show.

## About

BNY (The Bank of New York Mellon Corporation) is the largest custody bank in the world. It holds and services assets for asset managers, pension funds, insurers and other institutions. It had $63.4 trillion of assets under custody and administration and $2.2 trillion of assets under management at September 30, 2026. Its segments are Securities Services, Market and Wealth Services, and Investment and Wealth Management. They include asset servicing, corporate trust, depositary receipts, clearance and collateral management, payments and Pershing. Revenue was $20.1 billion in 2025. BNY is based in New York, and its shares trade on the New York Stock Exchange.

## Thesis

BNY trades at a premium because investors pay for its fast rise in returns. Return on tangible common equity rose from 26.1% in 2025 to 29.0% in Q3 2026. In Q3 2026, revenue grew 12%, fee revenue grew 12% and diluted EPS grew 24%. Net interest income rose 15% because BNY reinvested securities at higher yields and lent more. BNY also buys back shares: shares outstanding fell to 672.9 million at September 30, 2026 from 688.2 million at December 31, 2025. For the premium to be earned, three things must be true. Fee revenue must keep growing near 10% a year from new business, with revenue that grows faster than expenses. Net interest income must hold if interest rates fall; it fell 2% from Q2 to Q3 2026. Buybacks and dividends must continue while the CET1 ratio stays near 11%. The Q4 2026 report, expected in mid-January 2027, gives the next test. If expenses grow faster than revenue, as they did from Q2 to Q3 2026, or if lower rates cut net interest income, the premium can shrink within a year.

## Checkpoints

- Oct 15, 2026: Q3 2026 results. Status: Passed. Watch: Revenue and EPS growth with a return on tangible common equity near 30% pass; a fall in net interest income with lower returns fails. Outcome: Revenue rose 12%, EPS rose 24% and return on tangible common equity was 29.0%, although net interest income fell 2% from Q2.
- Jan 15, 2027 (estimate): Q4 2026 results and 2027 outlook. Status: Pending. Watch: Fee growth near 10%, stable net interest income and revenue that grows faster than expenses pass; falling net interest income or weaker operating leverage fail.

## Balance sheet

BNY is a bank, so its balance sheet is mostly deposits, securities and loans, and not corporate debt. Average deposits were $311 billion in Q3 2026, up 4% from a year earlier. At September 30, 2026, the CET1 ratio was 10.9%, the Tier 1 leverage ratio was 5.7% and the supplementary leverage ratio was 6.0%, down from 11.9%, 6.0% and 6.7% at December 31, 2025, because of buybacks and balance sheet growth. The average liquidity coverage ratio was 111%. Book value per common share was $58.43 and tangible book value per common share was $32.22. BNY issued $2.5 billion of senior notes in August 2026 and $1.25 billion of Series O preferred stock in October 2026, and it redeemed its Series F preferred stock in September 2026. Its stress capital buffer is at the 2.5% floor.

As of 2026-09-30.

Sources:

- https://www.sec.gov/Archives/edgar/data/1390777/000139077726000104/ex991_earningsreleasex3q26.htm
- https://www.sec.gov/Archives/edgar/data/1390777/000139077726000120/bk-20260930.htm
- https://www.sec.gov/Archives/edgar/data/1390777/000119312526347061/d175057d8k.htm
- https://www.sec.gov/Archives/edgar/data/1390777/000119312526436302/d17537d8k.htm

## Dividends

- Dividend yield: 1.6% (last 12 months, at the current price)
- Paid per share, last 12 months: $2.422 (6 payments)
- Current annual rate: $2.52 ($0.63 x 4 a year)
- Payout ratio: 27% of the earnings of the last fiscal year (the year ended 2025-12-31)
- Latest ex-dividend date: 2026-10-26, $0.63 per share

Dividends per share by year: 2016: $0.72, 2017: $0.86, 2018: $1.04, 2019: $1.18, 2020: $1.24, 2021: $1.30, 2022: $1.42, 2023: $1.58, 2024: $1.78, 2025: $2.00.

Source: company filings and market data, read on 2026-11-09.

## Recent events

- 2026-10-28: BNY issued Series O noncumulative perpetual preferred stock through 1,250,000 depositary shares, for $1.25 billion.
- 2026-10-15: BNY reported Q3 2026 results. Revenue rose 12% to $5.676 billion, and diluted EPS rose 24% to $2.34. The pre-tax operating margin was 38.5%, and return on tangible common equity was 29.0%. Net interest income rose 15% to $1.423 billion. BNY returned $1.4 billion to shareholders, including $937 million of buybacks. The CET1 ratio was 10.9%.
- 2026-09-20: BNY redeemed all of its Series F noncumulative perpetual preferred stock.
- 2026-08-12: BNY issued $2.5 billion of senior medium-term notes due 2030 and 2034.
- 2026-07-15: BNY reported Q2 2026 results. Revenue rose 13% to $5.7 billion, and diluted EPS rose 27% to $2.45. Return on tangible common equity was 31.3%. It returned $1.5 billion to shareholders.
- 2026-06-24: After the Federal Reserve's 2026 stress test, BNY said that its stress capital buffer stays at the 2.5% floor. It said that it plans to raise its quarterly dividend by 19% to $0.63 per share from the third quarter of 2026, subject to board approval.
- 2026-04-16: BNY reported Q1 2026 results. Revenue rose 13% to $5.4 billion, and diluted EPS rose 42% to $2.24. The board approved a new $10.0 billion share buyback program.
- 2026-01-13: BNY reported 2025 results. Revenue rose 8% to $20.1 billion, and diluted EPS rose 28% to $7.40. Return on tangible common equity was 26.1%. BNY also set new medium-term financial targets.

## Latest news and filings

- Last earnings: 2026-10-15 (8-K: https://www.sec.gov/Archives/edgar/data/1390777/000139077726000104/)
- Next earnings: 2027-01-15 (expected; the company has not confirmed it)

| Filed | Form | Headline | Period end | XBRL document | Link |
| --- | --- | --- | --- | --- | --- |
| 2026-10-30 | 10-Q | Quarterly report for the period ended Sep 30, 2026 | 2026-09-30 | bk-20260930 | https://www.sec.gov/Archives/edgar/data/1390777/000139077726000120/bk-20260930.htm |
| 2026-10-28 | 8-K | Change to shareholder rights or bylaws and Other company news |  |  | https://www.sec.gov/Archives/edgar/data/1390777/000119312526436302/d17537d8k.htm |
| 2026-10-15 | 8-K | Earnings release and Investor disclosure |  | bk-20261015 | https://www.sec.gov/Archives/edgar/data/1390777/000139077726000104/bk-20261015.htm |
| 2026-09-22 | 8-K | Change to shareholder rights or bylaws |  | bk-20260922 | https://www.sec.gov/Archives/edgar/data/1390777/000139077726000097/bk-20260922.htm |
| 2026-08-20 | 8-K | Other company news |  |  | https://www.sec.gov/Archives/edgar/data/1390777/000119312526358252/d417322d8k.htm |
| 2026-08-13 | 8-K | Change of directors or officers |  |  | https://www.sec.gov/Archives/edgar/data/1390777/000119312526349341/d342446d8k.htm |
| 2026-08-12 | 8-K | Other company news |  |  | https://www.sec.gov/Archives/edgar/data/1390777/000119312526347061/d175057d8k.htm |
| 2026-07-31 | 10-Q | Quarterly report for the period ended Jun 30, 2026 | 2026-06-30 | bk-20260630 | https://www.sec.gov/Archives/edgar/data/1390777/000139077726000086/bk-20260630.htm |
| 2026-07-23 | 8-K | Change to shareholder rights or bylaws and Other company news |  |  | https://www.sec.gov/Archives/edgar/data/1390777/000119312526314242/d126055d8k.htm |
| 2026-07-15 | 8-K | Earnings release and Investor disclosure |  | bk-20260715 | https://www.sec.gov/Archives/edgar/data/1390777/000139077726000071/bk-20260715.htm |

Every filing on SEC EDGAR (CIK 1390777): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001390777&type=&dateb=&owner=include&count=40

## Risks

- Medium: Net interest income was about a quarter of revenue in Q3 2026. Lower interest rates or smaller deposits can lower it, as in Q3 2026 when it fell 2% from Q2.
- Medium: Fee revenue depends on market values and client activity. A fall in stock and bond markets lowers fees on assets under custody and management.
- Medium: BNY runs systems that move and hold trillions of dollars of client assets. A cyber attack or a large outage can cause losses and harm client trust.
- Low: Assets under management grew only 2% in the year to Q3 2026 because of net outflows. Investment and Wealth Management grows more slowly than the rest of BNY.

## Links

- Page: https://picks.utilarium.app/company/BNY/
- History of changes: https://picks.utilarium.app/company/BNY/history/
- JSON with full history: https://picks.utilarium.app/data/company/BNY.json

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