The Bank of New York Mellon Corporation (BK)
NYSE:BK
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Bank of New York Mellon
(NYSE:BK)
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Rating:69Neutral
Price Target:
$130.00
▲(1.61% Upside)
Action:DowngradedDate:03/06/26
The score is supported mainly by improving profitability/leverage and a constructive earnings outlook with raised medium-term targets and expected positive operating leverage. This is tempered by uneven top-line/cash-flow consistency and softer near-term technical momentum, while valuation appears reasonable but not deeply discounted.
Positive Factors
Scale & Fee Franchise
BNY Mellon's enormous custody and asset-servicing scale creates a durable, recurring fee base. High AUC/A and AUM underpin steady fee income, cross-sell opportunities and client stickiness across cycles, reducing revenue volatility and supporting long-term fee resilience.
Negative Factors
Top-line Weakness
A decline in reported revenue means recent profit gains relied more on cost control and mix than sustainable sales expansion. If revenue momentum stalls, maintaining elevated margins and growth targets will be harder, leaving earnings vulnerable to modest market or fee headwinds.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Fee Franchise
BNY Mellon's enormous custody and asset-servicing scale creates a durable, recurring fee base. High AUC/A and AUM underpin steady fee income, cross-sell opportunities and client stickiness across cycles, reducing revenue volatility and supporting long-term fee resilience.
Read all positive factors
Bank of New York Mellon (BK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$87.88B
Dividend Yield1.71%
Average Volume (3M)3.44M
Price to Earnings (P/E)14.7
Beta (1Y)0.92
Revenue Growth4.22%
EPS Growth51.01%
CountryUS
Employees51,000
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)2.02
Shares Outstanding686,907,400
10 Day Avg. Volume3,234,198
30 Day Avg. Volume3,442,416
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-0.10
Enterprise Value/Revenue-0.21
Enterprise Value/Gross Profit-0.43
Enterprise Value/Ebitda-0.95
Forecast
1Y Price Target
$135.79Price Target Upside6.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)8.41
Revenue Forecast (FY)$21.19B
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
Bank of New York Mellon generates revenue primarily through fees charged for its various services. The main revenue streams include investment management fees from asset management services, which are based on a percentage of assets under manageme...
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:Jan 13, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Positive
The call conveyed strong execution and momentum: record revenue and net income, meaningful operating leverage, robust segment performances (notably Security Services and Markets & Wealth Services), increased medium-term financial targets and progress on AI and platform initiatives. Headwinds are isolated to Investment & Wealth Management flows, some fee pressures (Pershing), deposit margin compression and continued investment-driven expense growth. On balance the positive financial results, clear guidance, raised targets and evidence of commercial traction outweigh the challenges.Positive Updates
Record Financial Results
Full-year 2025 record net income of $5.3 billion on record revenue of $20.1 billion (total revenue +8% YoY). Return on tangible common equity (ROTCE) of 26% for the year. Full-year net interest income up 15% YoY. Full-year expenses up 3%, supporting positive operating leverage and margin expansion.
Negative Updates
Investment & Wealth Management Underperformance
Investment & Wealth Management revenue declined 2% YoY to $854 million and pretax income fell 14% YoY to $148 million (pretax margin 17%). Q4 saw net outflows of $3 billion, including $23 billion of net outflows from long-term strategies (partially offset by $20 billion into cash), signaling pressure in long-term AUM flows.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Financial Results
Full-year 2025 record net income of $5.3 billion on record revenue of $20.1 billion (total revenue +8% YoY). Return on tangible common equity (ROTCE) of 26% for the year. Full-year net interest income up 15% YoY. Full-year expenses up 3%, supporting positive operating leverage and margin expansion.
Read all positive updates
Company Guidance
BNY guided 2026 total revenue (ex-notable items) to grow about 5% year‑over‑year (market‑dependent) with expenses (ex‑notable items) planned to rise roughly 3–4%, targeting >100 basis points of positive operating leverage; management said net interest income should be a little ahead of 5% while fee growth may be a bit below 5%. The bank expects average balances to be roughly flat in 2026, will continue reinvesting maturing securities (citing a ~100–150 bp pickup on reinvestment), and anticipates a quarterly tax rate of ~23% (with a Q1 tax benefit from annual vesting) and elevated Q1 staff expense for long‑term incentive vesting. Over the medium term BNY raised its targets by 500 bps each — pretax margin to 38% (from ≥33%) and return on tangible common equity to 28% (from ≥23%) — while keeping its Tier 1 leverage management target at 5.5–6% (managing to the upper end); liquidity remains strong (LCR 112%, NSFR 130%) and capital returns continued (Q4 capital returned $1.4bn, full‑year $5.0bn, FY25 payout ratio 100%).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
127.94
Price Trends
118.88
Positive
117.04
Positive
109.50
Positive
Market Momentum
1.75
Negative
72.64
Negative
95.30
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 127.94 is above the 20-day moving average (MA) of 118.15, above the 50-day MA of 118.88, and above the 200-day MA of 109.50, indicating a bullish trend. The MACD of 1.75 indicates Negative momentum. The RSI at 72.64 is Negative, neither overbought nor oversold. The STOCH value of 95.30 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $87.88B | 14.74 | 12.66% | 1.71% | 4.22% | 51.01% | |
69 Neutral | $12.96B | 12.10 | 5.06% | 5.33% | 2.31% | 5.71% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $41.31B | 13.05 | 58.14% | 1.26% | 5.76% | 39.77% | |
66 Neutral | $10.76B | -42.08 | -2.06% | 3.08% | 6.64% | ― | |
66 Neutral | $37.94B | 12.46 | 10.76% | 2.43% | 5.62% | 49.49% | |
58 Neutral | $28.20B | 13.74 | 13.45% | 2.21% | -4.52% | 7.01% |
* Financial Sector Average
BK
Bank of New York Mellon
127.94
52.91
70.52%
AMP
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453.10
2.44
0.54%
BEN
Franklin Resources
24.88
8.12
48.45%
IVZ
Invesco
24.21
12.02
98.61%
STT
State Street
136.13
59.28
77.14%
NTRS
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151.74
65.96
76.90%
Bank of New York Mellon Corporate Events
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...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
BNY Mellon Issues $1.55 Billion Callable Senior Notes
Positive
Jan 22, 2026
On January 22, 2026, The Bank of New York Mellon Corporation issued $1.25 billion of 4.026% Fixed Rate / Floating Rate Callable Senior Medium-Term Notes Series J due 2030 and $300 million of Floating Rate Callable Senior Medium-Term Notes Series J...
Business Operations and StrategyFinancial Disclosures
BNY Mellon Posts Record 2025 Earnings and Revenue
Positive
Jan 13, 2026
On January 13, 2026, BNY reported its financial results for the fourth quarter and full year ended December 31, 2025, posting diluted earnings per share of $2.02 for the quarter, or $2.08 on an adjusted basis, and full-year EPS of $7.40, or $7.50 ...
Business Operations and StrategyExecutive/Board Changes
BNY Mellon Elects Charles F. Lowrey to Board
Positive
Dec 11, 2025
On December 9, 2025, BNY Mellon’s Board of Directors elected Charles F. Lowrey as an independent member, effective February 15, 2026, expanding the board to 12 directors. Additionally, the Human Resources and Compensation Committee awarded C...
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.