BNY reported a 21% increase in profits in the third quarter of 2025 as total assets under custody and management reached $57.8 trillion, driven by rising stock markets and increased customer activity.
According to BNY's third quarter earnings report, net income increased to $1.34 billion and earnings per share reached $1.88, an increase of 25% year over year.
The bank said total revenue reached a record $5.1 billion, up 9% year over year, with both Securities Services and Markets and Wealth Services contributing to the growth, with pre-tax margins of 36% and return on tangible common equity (ROTCE) rising to 25.6%.
Chief Executive Officer Robin Vince said the company's strategy is delivering measurable progress. “BNY delivered another strong quarter,” he said, adding that the record revenue came from “broad-based growth across our platforms” and that two core transformation programs “are delivering results.”
Robin pointed to new commercial models that are helping the company increase sales momentum and expand its customer solutions. He also said the company is integrating artificial intelligence across its operations, explaining that Eliza, the latest version of BNY's AI platform, is “smarter, faster and easier to use.”
BNY increases revenue and invests in efficiency
Total fee income increased 7% to $3.64 billion due to stronger customer flow, higher market value, and a weaker US dollar benefiting international operations. Investments and other income was $208 million, supported by gains on disposals and other investment gains.
Net interest income increased 18% to $1.24 billion, supported by reinvestment of maturing securities into high-yield assets and balance sheet growth, although changes in deposit mix offset some of the gains.
The bank reported a $7 million benefit from credit losses due to a favorable macroeconomic outlook that more than offset increased provisions related to commercial real estate exposures. Noninterest expense increased 4% to $3.24 billion, primarily due to staff merit increases, investment spending, and a weaker dollar. BNY said these expenses were partially offset by efficiency savings, resulting in an effective tax rate of 21.3% for the quarter.
BNY's average deposits increased 5% year over year to $299 billion, and capital levels remained strong. The Tier 1 leverage ratio remained at 6.1% and the Common Equity Tier 1 (CET1) ratio was 11.7% (11.9% in the prior year period). The bank returned $1.2 billion to shareholders during the quarter, including $381 million in dividends and $849 million in share buybacks, giving it a year-to-date payout ratio of 92%.
BNY faces lawsuit over Epstein-related claims
BNY's assets under custody and management increased 11%, with total assets under management of $2.1 trillion, flat from a year ago as inflows were offset by outflows.
According to the financial report, BNY's liquidity is stable, with an average liquidity coverage ratio of 112% and a net stable funding ratio of 130%, both of which are above regulatory minimums.
However, BNY acknowledged that alongside its strong quarter, it is now facing new legal pressures. A woman identified as Jane Doe has filed a lawsuit against BNY and Bank of America, accusing them of knowingly providing financial services that enabled Jeffrey Epstein's sex trafficking operations.
Remarks on CNBC cry on the street“We believe this lawsuit has no merit and intend to vigorously fight it,” Robin said. Boies Schiller and Edwards Henderson are representing Jane Doe, the same firms that previously secured $75 million and $290 million settlements from Deutsche Bank and JPMorgan, respectively, in similar cases.
