BNY profit surges by 21% in Q3 as bullish stock market lifts client assets to $57.8 trillion

BNY reported a 21% jump in profit for the third quarter of 2025, powered by a rising stock market and higher client activity that pushed total assets under custody and administration to $57.8 trillion.

According to BNY’s Q3 earnings report, net income rose to $1.34 billion, while earnings per share reached $1.88, up 25% from last year.

The bank said total revenue hit a record $5.1 billion, a 9% increase from the previous year, with both Securities Services and Market and Wealth Services contributing to the growth, while the pre-tax margin came in at at 36%, and return on tangible common equity (ROTCE) surged to 25.6%.

Chief Executive Officer Robin Vince said the company’s strategy is delivering measurable progress. “BNY delivered another quarter of strong results,” he said, adding that record revenue came from “broad-based growth across our platforms” and that its two core transformation programs are “showing results.”

Robin pointed to a new commercial model that is helping the firm boost sales momentum and expand client solutions. He also said the company is integrating artificial intelligence across its operations, describing the latest version of BNY’s AI platform, Eliza, as “smarter, faster and easier to use.”

BNY increases revenue, invests in efficiency

Total fee revenue reached $3.64 billion, up 7%, driven by stronger client flows, higher market values, and a weaker U.S. dollar that benefited international operations. Investment and other revenue came in at $208 million, helped by disposal gains and other investment profits.

Net interest income surged by 18% to $1.24 billion, supported by the reinvestment of maturing securities into higher-yield assets and balance sheet growth, though changes in deposit mix offset some of the gain.

The bank reported a $7 million benefit from credit losses, driven by a more favorable macroeconomic outlook that outweighed higher reserves linked to commercial real estate exposure. Noninterest expense increased 4% to $3.24 billion, mainly from staff merit raises, investment spending, and a weaker dollar. These expenses were partly offset by efficiency savings, and the effective tax rate for the quarter was 21.3%, said BNY.

BNY’s average deposits reached $299 billion, up 5% year-over-year, while capital levels stayed strong. The Tier 1 leverage ratio held at 6.1%, and the Common Equity Tier 1 (CET1) ratio stood at 11.7%, compared to 11.9% a year ago. The bank returned $1.2 billion to shareholders during the quarter, including $381 million in dividends and $849 million in share repurchases, with a 92% payout ratio year-to-date.

BNY faces lawsuit over Epstein-linked claims

BNY’s assets under custody and administration surged by 11%, while assets under management totaled $2.1 trillion, flat from last year as inflows were offset by outflows.

The earnings report claims that BNY’s liquidity remains stable, with an average liquidity coverage ratio of 112% and a net stable funding ratio of 130%, both exceeding regulatory minimums.

But alongside the strong quarter, BNY did acknowledge that it now faces new legal pressure. A woman identified as Jane Doe filed a lawsuit against BNY and Bank of America, alleging they knowingly provided financial services that enabled Jeffrey Epstein’s sex trafficking operation.

Speaking on CNBC’s Squawk on the Street, Robin said, “We don’t think the suit has any merit, and we’re going to contest it vigorously.” Jane Doe is represented by Boies Schiller and Edwards Henderson, the same firms that previously secured $75 million and $290 million settlements from Deutsche Bank and JPMorgan, respectively, over similar claims.

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