BNY profit tops estimates thanks to jump in fees

Published 16/10/2025, 11:54
© Reuters.

Investing.com - BNY has posted third-quarter profit that topped expectations, as the lender was bolstered by elevated stock markets which lifted the value of client assets and helped support fees.

The world’s largest custodian bank said its assets under custody and administration surged by 11% in the quarter ended on September 30 to $57.8 trillion from a year ago, thanks largely to client inflows and increased market values.

After a swoon earlier this year in the wake of President Donald Trump’s sweeping tariff announcement, U.S. stock markets have surged to repeatedly touch new record highs. So far this year, the benchmark S&P 500 has spiked by more than 13%, but the climb has fueled some worries around the sustainability of frothy equity valuations.

Still, the push higher in stocks, as well as a weaker U.S. dollar, partially contributed to a lift in BNY’s fee revenue by 7% to $3.64 billion.

Total revenue, in turn, increased by 9% to $5.08 billion, exceeding Bloomberg consensus estimates of $4.98 billion. Net income attributable to common shareholders grew by 21% to $1.34 billion.

Adjusted diluted earnings per share stood at $1.91, versus estimates of $1.77.

Meanwhile, provisions for credit losses was a benefit of $7 million, primarily due to changes in the "macroeconomic forecast" that were partly offset by higher reserves related to commercial real estate exposure, BNY said.

Shares of the company were slightly higher in premarket U.S. trading on Thursday.

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