BNY raises 2026 revenue forecast after record second quarter

BNY, the Bank of New York Mellon Corporation, raised its 2026 revenue forecast to 10% to 11% after posting record second-quarter revenue of $5.698 billion, a 13% increase from a year earlier. Adjusted earnings came to $2.45 to $2.46 a share, well above analyst expectations of about $2.22 to $2.23, underscoring how one of Wall Street’s biggest custody banks is benefiting from a stronger market backdrop as well as higher interest income.

The quarter showed where BNY is making money now. Net interest income rose 20% to $1.446 billion, total fee revenue increased 11% to $4.036 billion, and average deposits climbed 5% to $314 billion. By June 30, BNY was overseeing $62.6 trillion in assets under custody and/or administration and $2.2 trillion in assets under management, figures that tie its results closely to the level of client assets, trading activity and market values moving through the financial system.

The bank’s results came as the S&P 500 and Nasdaq posted their biggest gains since 2020 in the second quarter, helping lift the value of client assets even as investors absorbed renewed conflict in the Middle East and swings in artificial intelligence-linked technology shares. That combination matters for BNY’s business mix, which includes securities servicing, asset management and liquidity services, because rising markets can boost fee income, swell balances and improve the economics of custody operations. Chief executive Robin Vince said, “It’s an active period for markets, a lot of things going on,” and added that “the fundamental drivers of capital markets have been broadly constructive” and that “corporate earnings have been resilient.”

Chief financial officer Dermot McDonogh said BNY was “at the center of the financial markets infrastructure” and said the company still has “white space” to grow if markets slow later this year or next year. The company’s pre-tax operating margin reached 39.8% and its ROTCE was 31.3%, while it returned $1.5 billion of capital to common shareholders, including $371 million in dividends and $1.1 billion in share repurchases.

BNY said the second quarter of 2025 was the first time quarterly revenue topped $5 billion, making the latest period a new high-water mark. The company’s updated forecast also clears the 7.8% full-year revenue growth analysts had expected, suggesting that the current mix of higher rates, stronger markets and steady institutional client demand is still feeding through the plumbing of the financial system.