The 19% QoQ dividend increase and continued aggressive buyback ($937M in Q3) signal strong capital generation and management confidence. Monitor the CET1 ratio trajectory (down 60 bps from Dec 2025) and deposit cost trends, as sequential NII declined 2% QoQ on deposit margin compression.
Price Chart
Executive Summary
BNY reported Q3 2026 diluted EPS of $2.34 (GAAP) / $2.37 (adjusted), beating consensus of $2.35 by 0.9%. Total revenue of $5.676B grew 12% YoY, driven by broad-based fee revenue growth and net interest income expansion. The sequential decline in net income and EPS reflects lower investment and other revenue and higher expenses, but the strong YoY operating leverage (389 bps GAAP) and capital returns ($1.4B returned to shareholders) support the positive read.
Key Financial Metrics
Key Facts
- Diluted GAAP EPS of $2.34, up 24% YoY from $1.88; adjusted EPS of $2.37, up 24% YoY from $1.91
- Total revenue of $5.676B, up 12% YoY from $5.081B; fee revenue up 12% YoY to $4.078B
- Net interest income of $1.423B, up 15% YoY from $1.236B; net interest margin expanded 12 bps YoY to 1.43%
- Pre-tax operating margin of 38.5%, up 210 bps YoY from 36.4%; ROTCE of 29.0%, up 340 bps YoY
- Returned $1.4B to common shareholders via $436M dividends and $937M share repurchases; dividend increased 19% QoQ to $0.63/share
- CET1 ratio of 10.9% (down 6 bps QoQ); Tier 1 leverage ratio of 5.7% (down 24 bps QoQ)
- AUCA of $63.4T, up 10% YoY; AUM of $2.2T, up 2% YoY
- Noninterest expense of $3.489B, up 8% YoY, with >75% of increase attributed to revenue-related expenses
Financial Impact
EPS beat consensus by $0.02 (0.9%); revenue slightly below $5.74B consensus by ~1.1%
Risk Factors
- Sequential decline in net income (-6% QoQ) and EPS (-4% QoQ) driven by lower investment and other revenue
- CET1 ratio declining (10.9% vs 11.9% at Dec 2025) could constrain capital return capacity if trend continues
- Net interest income declined 2% QoQ on lower deposit balances and margin compression
- Expenses grew 8% YoY, outpacing revenue growth on a sequential basis (1% expense growth vs flat revenue)
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001390777-26-000104 |
| Exhibit: ex991_earningsreleasex3q26.htm | 0001390777-26-000104 |
| Exhibit: ex993_quarterlyupdatepre.htm | 0001390777-26-000104 |
| Document: bk-20261015.htm | 0001390777-26-000104 |
| Document: 0001390777-26-000104-index-headers.html | 0001390777-26-000104 |
| Document: 0001390777-26-000104-index.html | 0001390777-26-000104 |
| Document: 0001390777-26-000104.txt | 0001390777-26-000104 |
| 8-K Data (Synthetic) | 0001390777-26-000104 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 144 | $147.18 | awaiting T+20 | — | $147.81 (+0.43%) |
Oct 26, 2026 1d ago | Institutional Cluster | $145.32 | awaiting T+20 | — | $147.81 (+1.71%) |
Oct 21, 2026 6d ago | Court Ruling | $145.32 | awaiting T+20 | — | $147.81 (+1.71%) |
Oct 16, 2026 10d ago | 8-K/A | $142.44 | awaiting T+20 | — | $147.81 (+3.77%) |
Oct 15, 2026 12d ago | Press Release | $142.09 | awaiting T+20 | — | $147.81 (+4.03%) |
Oct 15, 2026 12d ago | Press Release | $142.09 | awaiting T+20 | — | $147.81 (+4.03%) |
Oct 15, 2026 12d ago | 8-K | $142.09 | awaiting T+20 | — | $147.81 (+4.03%) |
Aug 20, 2026 9w ago | 8-K | $157.24 $153.79 | ▼ −2.19% | ▼ −2.07% | $147.81 (−6.00%) |
Aug 6, 2026 11w ago | 13F-HR | $158.82 $164.33 | ▲ +3.47% | ▲ +2.87% | $147.81 (−6.93%) |
Aug 6, 2026 11w ago | Institutional Cluster | $158.82 $164.33 | ▲ +3.47% | ▲ +2.87% | $147.81 (−6.93%) |
US Market Status
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