Bank of New York Mellon (BK)
NYSE:BK
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Bank of New York Mellon
(NYSE:BK)
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Rating:74Outperform
Price Target:
$152.00
▲(12.51% Upside)
Action:ReiteratedDate:04/24/26
BK scores well primarily on improving fundamentals and a strongly positive earnings update (raised 2026 outlook and sizable buyback), supported by a reasonable P/E. The main dampeners are volatile cash flow/recent revenue softness and overbought technical signals that elevate near-term pullback risk.
Positive Factors
Scale in custody & AUM
Enormous AUCA and large AUM create sticky, recurring fee revenue and deep client relationships across institutional markets. This scale supports bargaining power, cross‑sell of treasury/clearing services and resilience of fee base through cycles, sustaining long‑term fee generation.
Negative Factors
Volatile cash generation
Large year‑to‑year swings in free cash flow reduce predictability of dividend and buyback capacity and complicate capital planning. Inconsistent cash conversion means reliance on favorable market timing or one‑offs to fund returns, which raises execution risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale in custody & AUM
Enormous AUCA and large AUM create sticky, recurring fee revenue and deep client relationships across institutional markets. This scale supports bargaining power, cross‑sell of treasury/clearing services and resilience of fee base through cycles, sustaining long‑term fee generation.
Read all positive factors
Bank of New York Mellon (BK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$92.01B
Dividend Yield1.71%
Average Volume (3M)3.72M
Price to Earnings (P/E)12.6
Beta (1Y)0.96
Revenue Growth4.22%
EPS Growth51.01%
CountryUS
Employees51,000
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)2.24
Shares Outstanding686,379,000
10 Day Avg. Volume4,282,366
30 Day Avg. Volume3,724,868
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)1.85
Price to Sales (P/S)2.02
P/FCF Ratio15.80
Enterprise Value/Market Cap-0.07
Enterprise Value/Revenue-0.16
Enterprise Value/Gross Profit-0.33
Enterprise Value/Ebitda-0.74
Forecast
1Y Price Target
$139.58Price Target Upside3.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)8.73
Revenue Forecast (FY)$21.45B
Bank of New York Mellon Business Overview & Revenue Model
Company Description
The Bank of New York Mellon Corporation provides a range of financial products and services in the United States and internationally. The company operates through Securities Services, Market and Wealth Services, Investment and Wealth Management, a...
How the Company Makes Money
BNY Mellon makes money primarily by charging fees for financial services and by earning net interest income on interest-earning assets.
1) Fee-based revenue (primary driver)
- Securities services / asset servicing and custody: BNY Mellon earns re...
Bank of New York Mellon Key Performance Indicators (KPIs)
Any
Assets Under Management
Indicates the total market value of assets managed on behalf of clients, reflecting the company's ability to attract and retain client investments, which drives fee-based revenue.
Indicates the total market value of assets managed on behalf of clients, reflecting the company's ability to attract and retain client investments, which drives fee-based revenue.
Data provided by:
The Fly
The FlyBank of New York Mellon Earnings Call Summary
Earnings Call Date:Apr 16, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 21, 2026
Earnings Call Sentiment Positive
The call highlighted a very strong first quarter with record revenue, substantial EPS growth (+42% YoY), meaningful operating leverage (833 bps) and margin expansion, driven by diversified fee and NII growth, notable client wins, and accelerating AI adoption. Management raised full-year revenue and NII outlooks and authorized a new $10 billion buyback, signaling confidence. However, several cautions were noted: some benefits are tied to elevated market activity and one-offs, CET1 dipped sequentially due to period-end balance spikes, deposit composition is expected to normalize, and specific AUM categories saw net outflows. The positives—broad-based revenue strength, strong capital returns, and strategic AI/technology momentum—materially outweigh the transitory and operational risks discussed.Positive Updates
Record Revenue and Strong EPS Growth
Reported revenue of $5.4 billion, a 13% year-over-year increase, and earnings per share of $2.24, up 42% year over year (both reported and excluding notable items).
Negative Updates
CET1 Ratio Sequential Decline
Common Equity Tier 1 ratio declined to 11%, down 89 basis points sequentially, primarily due to higher risk-weighted assets driven by a single-day increase in overnight loan balances and elevated client activity at quarter-end.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Revenue and Strong EPS Growth
Reported revenue of $5.4 billion, a 13% year-over-year increase, and earnings per share of $2.24, up 42% year over year (both reported and excluding notable items).
Read all positive updates
Company Guidance
Guidance highlights: for full-year 2026 the bank raised its revenue outlook (excluding notable items) to about 6% year‑over‑year growth and expects net interest income to be up roughly 10% y/y, while expense growth (excluding notable items) is expected at the top of the 3%–4% y/y range; the firm continues to expect a quarterly tax rate of ~23% for the remainder of the year. Capital and liquidity guidance/positioning included returning $1.4 billion of capital in Q1 (an 87% total payout ratio), a new $10 billion share‑repurchase authorization, CET1 of 11% (down 89 bps sequentially), Tier 1 leverage at 6% (flat), Tier 1 capital up $532 million, LCR 111% and NSFR 131%. Balance and deposit guidance noted Q2 modestly down from Q1, seasonally weakest Q3 and strongest Q4, and modestly higher average balances vs. 2025; non‑dollar balances are ~25% of the book and euro/GBP betas peaked around 80%.Bank of New York Mellon Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 40.44B | 39.55B | 33.79B | 19.80B | 15.86B |
| Gross Profit | 19.79B | 18.19B | 17.37B | 16.15B | 15.86B |
| EBITDA | 8.91B | 7.65B | 6.17B | 5.26B | 6.51B |
| Net Income | 5.55B | 4.53B | 3.30B | 2.56B | 3.76B |
Balance Sheet | |||||
| Total Assets | 472.30B | 416.06B | 409.88B | 405.78B | 444.44B |
| Cash, Cash Equivalents and Short-Term Investments | 190.69B | 200.61B | 238.93B | 225.56B | 266.75B |
| Total Debt | 33.88B | 45.44B | 46.24B | 43.19B | 38.25B |
| Total Liabilities | 427.49B | 374.30B | 368.97B | 364.93B | 401.05B |
| Stockholders Equity | 44.31B | 41.32B | 40.77B | 40.73B | 43.03B |
Cash Flow | |||||
| Free Cash Flow | 5.18B | -782.00M | 4.69B | 13.72B | 1.62B |
| Operating Cash Flow | 6.73B | 687.00M | 5.91B | 15.07B | 2.84B |
| Investing Cash Flow | -44.28B | -9.48B | -5.81B | 19.87B | 19.67B |
| Financing Cash Flow | 39.71B | 6.34B | -3.52B | -33.65B | -21.96B |
Bank of New York Mellon Technical Analysis
Positive
135.10
Price Trends
120.40
Positive
118.62
Positive
110.96
Positive
Market Momentum
4.22
Negative
79.49
Negative
91.13
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BK, the sentiment is Positive. The current price of 135.1 is above the 20-day moving average (MA) of 123.47, above the 50-day MA of 120.40, and above the 200-day MA of 110.96, indicating a bullish trend. The MACD of 4.22 indicates Negative momentum. The RSI at 79.49 is Negative, neither overbought nor oversold. The STOCH value of 91.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BK.
Bank of New York Mellon Risk Analysis
Bank of New York Mellon disclosed 1 risk factors in its most recent earnings report. Bank of New York Mellon reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bank of New York Mellon Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $92.01B | 12.56 | 13.48% | 1.71% | 4.22% | 51.01% | |
72 Outperform | $42.09B | 11.33 | 47.12% | 1.26% | 5.76% | 39.77% | |
69 Neutral | $14.12B | 12.10 | 5.06% | 5.33% | 2.31% | 5.71% | |
69 Neutral | $41.74B | 11.53 | 11.09% | 2.43% | 5.62% | 49.49% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $11.33B | -42.08 | -2.06% | 3.08% | 6.64% | ― | |
65 Neutral | $30.39B | 12.32 | 14.45% | 2.21% | -4.52% | 7.01% |
* Financial Sector Average
BK
Bank of New York Mellon
134.05
56.29
72.39%
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1.76
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BEN
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90.50%
STT
State Street
150.74
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NTRS
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Bank of New York Mellon Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Bank of New York Mellon Issues New Senior Notes
Positive
Apr 23, 2026
On April 23, 2026, Bank of New York Mellon raised $1.5 billion through the issuance of two tranches of callable senior medium-term notes under its Series J program, consisting of $750 million of 4.540% fixed-to-floating notes due 2032 and $750 mil...
Business Operations and StrategyFinancial Disclosures
BNY Mellon Posts Record First-Quarter 2026 Revenue, Earnings
Positive
Apr 16, 2026
On April 16, 2026, BNY reported first-quarter 2026 results showing record revenue of $5.4 billion, up 13% year over year, driven by broad-based growth in Securities Services and Market and Wealth Services. Earnings per share rose 42% to $2.24, net...
Private Placements and FinancingRegulatory Filings and Compliance
BNY Mellon Establishes New Series M Preferred Stock
Positive
Mar 5, 2026
On March 4, 2026, The Bank of New York Mellon Corporation filed a Certificate of Designations in Delaware to establish the preferences, limitations and rights of a new Series M Noncumulative Perpetual Preferred Stock with a $100,000 per share liqu...
Business Operations and StrategyPrivate Placements and Financing
BNY Mellon Plans Series M Preferred Stock Offering
Neutral
Feb 26, 2026
On February 26, 2026, Bank of New York Mellon announced a proposed public offering of depositary shares, each representing a 1/100th interest in a new Series M Noncumulative Perpetual Preferred Stock, with final pricing yet to be determined. The b...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.