The Bank of New York Mellon Corporation (BK)
NYSE:BK
Want to see BK full AI Analyst Report?
Top Page
Bank of New York Mellon
(NYSE:BK)
Select Model
Select Model
Rating:67Neutral
Price Target:
$142.00
â–²(5.11% Upside)
Action:Downgraded
Date:05/09/26
The score is driven by strong earnings-call momentum (raised outlook, record quarter, and a large buyback) and reasonable valuation. These positives are moderated by financial-statement risks—especially higher leverage and weaker recent free-cash-flow conversion—and only neutral-to-mixed near-term technical momentum.
Positive Factors
Scale of fee revenue & client assets
BNY Mellon’s massive AUCA/AUM base drives recurring, sticky fee income from custody, treasury and asset servicing. That scale produces durable revenue streams and client lock-in across institutional services, supporting steady fee growth even if market activity softens.
Negative Factors
Rising leverage and debt
A marked increase in leverage and higher debt levels reduces balance-sheet flexibility and raises funding and capital risk. In adverse markets this constrains the bank’s ability to absorb losses, maintain capital returns, or pursue opportunistic investments without raising costly capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale of fee revenue & client assets
BNY Mellon’s massive AUCA/AUM base drives recurring, sticky fee income from custody, treasury and asset servicing. That scale produces durable revenue streams and client lock-in across institutional services, supporting steady fee growth even if market activity softens.
Read all positive factors
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 (BK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$93.75B
Dividend Yield1.71%
Average Volume (3M)3.83M
Price to Earnings (P/E)12.6
Beta (1Y)0.94
Revenue Growth1.91%
EPS Growth31.72%
CountryUS
Employees51,000
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)8.13
Shares Outstanding686,379,000
10 Day Avg. Volume3,556,384
30 Day Avg. Volume3,828,729
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-0.42
Enterprise Value/Revenue-0.97
Enterprise Value/Gross Profit-1.93
Enterprise Value/Ebitda-4.42
Forecast
1Y Price Target
$140.88Price Target Upside4.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)8.74
Revenue Forecast (FY)$21.50B
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 Earnings Call Summary
Earnings Call Date:Apr 16, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 15, 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
56
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 40.65B | 40.44B | 39.55B | 33.79B | 19.80B | 15.86B |
| Gross Profit | 20.54B | 19.79B | 18.19B | 17.37B | 16.15B | 15.86B |
| EBITDA | 8.96B | 8.91B | 7.65B | 6.17B | 5.26B | 6.51B |
| Net Income | 5.96B | 5.55B | 4.53B | 3.30B | 2.56B | 3.76B |
Balance Sheet | ||||||
| Total Assets | 561.52B | 472.30B | 416.06B | 409.88B | 405.78B | 444.44B |
| Cash, Cash Equivalents and Short-Term Investments | 254.38B | 190.69B | 200.61B | 238.93B | 225.56B | 266.75B |
| Total Debt | 53.27B | 33.88B | 45.44B | 46.24B | 43.19B | 38.25B |
| Total Liabilities | 516.20B | 427.49B | 374.30B | 368.97B | 364.93B | 401.05B |
| Stockholders Equity | 44.78B | 44.31B | 41.32B | 40.77B | 40.73B | 43.03B |
Cash Flow | ||||||
| Free Cash Flow | 1.46B | 5.18B | -782.00M | 4.69B | 13.72B | 1.62B |
| Operating Cash Flow | 3.31B | 6.73B | 687.00M | 5.91B | 15.07B | 2.84B |
| Investing Cash Flow | -109.20B | -44.28B | -9.48B | -5.81B | 19.87B | 19.67B |
| Financing Cash Flow | 106.92B | 39.71B | 6.34B | -3.52B | -33.65B | -21.96B |
Bank of New York Mellon Technical Analysis
Positive
135.10
Price Trends
126.62
Positive
122.78
Positive
114.76
Positive
Market Momentum
2.14
Positive
63.02
Neutral
76.15
Neutral
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 133.80, above the 50-day MA of 126.62, and above the 200-day MA of 114.76, indicating a bullish trend. The MACD of 2.14 indicates Positive momentum. The RSI at 63.02 is Neutral, neither overbought nor oversold. The STOCH value of 76.15 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $42.55B | 11.53 | 11.09% | 2.43% | 1.43% | 10.86% | |
73 Outperform | $42.36B | 11.33 | 61.59% | 1.26% | 6.43% | 36.14% | |
73 Outperform | $30.58B | 12.32 | 14.45% | 2.21% | -5.75% | -10.69% | |
72 Outperform | $16.61B | 8.82 | 6.69% | 5.33% | 3.11% | 89.49% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $93.75B | 12.56 | 13.48% | 1.71% | 1.91% | 31.72% | |
65 Neutral | $12.14B | 10.20 | -1.86% | 3.08% | 11.02% | -218.32% |
* Financial Sector Average
BK
Bank of New York Mellon
136.32
49.06
56.22%
AMP
Ameriprise Financial
463.76
-40.62
-8.05%
BEN
Franklin Resources
30.79
10.35
50.64%
IVZ
Invesco
26.47
12.33
87.15%
STT
State Street
150.88
57.95
62.37%
NTRS
Northern
164.91
62.16
60.49%
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.