BNY profit jumps 42% on record revenue as board OKs $10B buyback

The Bank of New York Mellon (NYSE:BK) reported a surge in first-quarter profitability, characterized by record top-line growth and a significant expansion in shareholder returns.

The firm posted total revenue of $5.4 billion for the period ended March 31, 2026, a 13% increase compared to the prior-year quarter.

The bank’s bottom-line results outpaced revenue growth, with diluted earnings per share (EPS) jumping 42% to $2.24.

This performance was supported by a disciplined approach to spending; while revenue grew double-digits, noninterest expenses rose only 5% to $3.4 billion.

The resulting operating leverage pushed BNY’s pre-tax operating margin to 37% and delivered a powerful return on tangible common equity (ROTCE) of 29.3%.

BNY’s balance sheet reflected strong liquidity and client engagement.

Average deposits climbed 13% year-over-year to $318 billion, representing a 3% sequential increase from the fourth quarter of 2025.

The firm also maintained a solid capital position with a Tier 1 leverage ratio of 6%, even as it aggressively returned capital to investors.

Meanwhile, capital distribution remained a central theme of the quarter.

BNY returned $1.4 billion to common shareholders, comprised of $376 million in dividends and $983 million in share repurchases, representing a total payout ratio of 87%.

Signaling a long-term commitment to shareholder value, the Board of Directors authorized a new common share repurchase program of up to $10 billion.