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1. Company Snapshot

1.a. 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, and Other segments.The Securities Services segment offers custody, trust and depositary, accounting, exchange-traded funds, middle-office solutions, transfer agency, services for private equity and real estate funds, foreign exchange, securities lending, liquidity/lending services, prime brokerage, and data analytics.


This segment also provides trustee, paying agency, fiduciary, escrow and other financial, issuer, and support services for brokers and investors.The Market and Wealth Services segment offers clearing and custody, investment, wealth and retirement solutions, technology and enterprise data management, trading, and prime brokerage services; and clearance and collateral management services.This segment also provides integrated cash management solutions, including payments, foreign exchange, liquidity management, receivables processing and payables management, and trade finance and processing services.


The Investment and Wealth Management segment offers investment management strategies and distribution of investment products, investment management, custody, wealth and estate planning, private banking, investment, and information management services.The Other segment engages in the provision of leasing, corporate treasury, derivative and other trading, corporate and bank-owned life insurance, renewable energy investment, and business exit services.It serves central banks and sovereigns, financial institutions, asset managers, insurance companies, corporations, local authorities and high net-worth individuals, and family offices.


The company was founded in 1784 and is headquartered in New York, New York.

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1.b. Last Insights on BK

The Bank of New York Mellon Corporation's recent performance was driven by strong Q2 2025 earnings, with EPS rising 27% year-over-year and revenue surpassing $5 billion for the first time, up 9% year-over-year. The company's digital push and growth in fees and net interest income fueled the positive results. Additionally, BNY Mellon's transformation into a high-margin, capital-light financial platform is driving strong revenue growth and operating leverage, with a ~28% ROTCE. The company also raised its dividend and announced a $500 million public offering of depositary shares.

1.c. Company Highlights

2. BNY Mellon Delivers Strong Q3 with Revenue Growth and Margin Expansion

The Bank of New York Mellon Corporation reported a robust third quarter with record revenue of $5.1 billion, up 9% year over year. Earnings per share were $1.91, beating estimates of $1.76, with a pretax margin improvement to 36%. The company's return on tangible common equity was 26%. Total revenue was driven by 10% growth in investment services fees and net interest income of $1.2 billion, up 18% year over year. Expenses were $3.2 billion, up 4% year over year. The company returned approximately $1.2 billion of capital to shareholders, resulting in a 92% total payout ratio year to date.

Publication Date: Oct -17

📋 Highlights
  • Record Revenue and EPS Growth:: Achieved $5.1 billion revenue (up 9% YoY) and $1.88 EPS (up 25% YoY).
  • Segment Strength:: Security Services ($2.5B, +11%) and Markets & Wealth Services ($1.8B, +14%) drove double-digit revenue growth with strong pretax income increases (26% and 24%, respectively).
  • Margin Expansion:: Pretax margin improved to 36%, and return on tangible common equity reached 26%, reflecting operational efficiency.
  • Capital Returns:: Returned $1.2 billion to shareholders with a 92% payout ratio YTD, targeting 90-100% for 2025.
  • Digital and Strategic Investments:: Launched AI platform ELISA 2.0 and partnered with Carnegie Mellon for an AI lab, while investing $500 million in efficiency and growth initiatives.

Segment Performance

Segment-wise, Security Services reported total revenue of $2.5 billion, up 11% year over year, with pretax income of $806 million, up 26%. Markets and Wealth Services reported total revenue of $1.8 billion, up 14%, with pretax income of $875 million, up 24%. Investment and Wealth Management reported total revenue of $824 million, down 3%, with pretax income of $184 million, up 5%. The company's diversified platforms and emphasis on growth in certain areas have positioned it to take advantage of market opportunities.

Outlook and Guidance

The company guides for 3% full-year expense growth, implying a 2% year-over-year growth in the fourth quarter. Dermot McDonogh said they have generated $500 million of efficiency throughout the firm this year and redeployed it into growth investments. The effective tax rate for the fourth quarter is projected to be around 21%, bringing the full-year effective tax rate into a range of 21% to 22%. Analysts estimate next year's revenue growth at 4.2%.

Valuation and Dividend Yield

With a P/TBV ratio of 1.67 and a dividend yield of 1.86%, BNY Mellon's valuation appears reasonable. The company's ability to return capital to shareholders through buybacks and dividends is a positive aspect. The current P/E ratio of 14.0 suggests that the market has a relatively modest expectation for the company's future growth.

Digital Assets and Future Opportunities

The company is well-positioned to capitalize on the evolving money market ecosystem, with investments in digital assets and platforms that can serve the technological evolution of money market funds. Robin Vince noted that it is a multiyear opportunity and they are positioned for optionality. The company's hiring of Carlin Weinberg to lead the digital assets business is a strategic move to drive growth in this area.

3. NewsRoom

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BNY and Nasdaq Invest in Blockchain Tech Company Digital Asset

Dec -04

Source: pymnts.com

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Brandes Investment Partners LP Sells 180,479 Shares of The Bank of New York Mellon Corporation $BK

Dec -02

Source: defenseworld.net

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Arjuna Capital Has $1.37 Million Stock Holdings in The Bank of New York Mellon Corporation $BK

Dec -02

Source: defenseworld.net

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All You Need to Know About The Bank of New York Mellon (BK) Rating Upgrade to Buy

Nov -28

Source: zacks.com

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USB or BK: Which Is the Better Value Stock Right Now?

Nov -28

Source: zacks.com

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Advisors Asset Management Inc. Has $9.18 Million Stock Position in The Bank of New York Mellon Corporation $BK

Nov -26

Source: defenseworld.net

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BNY Mellon Small/Mid Cap Growth Fund Q3 2025 Performance Review

Nov -23

Source: seekingalpha.com

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Boston Research & Management Inc. Sells 2,036 Shares of The Bank of New York Mellon Corporation $BK

Nov -23

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.66%)

6. Segments

Securities Services

Expected Growth: 4.5%

The Bank of New York Mellon Corporation's financial services for securities and investments management will experience growth driven by increasing demand for asset servicing and outsourcing, and the adoption of advanced technologies such as artificial intelligence and blockchain, which enhance operational efficiency and improve client experience.

Market and Wealth Services

Expected Growth: 7.5%

Increased adoption of digital wealth management platforms, growing demand for sustainable investment solutions, and expanding presence in emerging markets drive growth for BNY Mellon’s financial services for global investment managers and Wealth Management.

Investment and Wealth Management

Expected Growth: 5.3%

The Bank of New York Mellon Corporation's investment and wealth management services are driven by increasing demand for digital wealth management solutions, expansion into emerging markets, and acquisitions.

Other

Expected Growth: 8.4%

Driven by increasing demand for treasury services, foreign exchange, and trade finance, the Bank of New York Mellon’s strategic acquisitions and innovative digital solutions, the other segment is expected to grow steadily.

7. Detailed Products

Investment Servicing

Provides custody, accounting, and administrative services to support investment managers and their clients

Wealth Management

Offers investment management, wealth planning, and private banking services to high net worth individuals and families

Corporate Trust

Provides trust and agency services to corporations, governments, and financial institutions

Depositary Receipts

Issues and administers American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) for non-US companies

Treasury Services

Provides cash management, trade finance, and escrow services to corporations and financial institutions

Markets

Offers foreign exchange, securities lending, and collateral management services to institutional clients

Digital

Develops and provides digital solutions for investment servicing, wealth management, and treasury services

8. The Bank of New York Mellon Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for The Bank of New York Mellon Corporation is medium due to the presence of alternative financial institutions and digital payment systems.

Bargaining Power Of Customers

The bargaining power of customers for The Bank of New York Mellon Corporation is low due to the complexity of financial services and the lack of price sensitivity among customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for The Bank of New York Mellon Corporation is low due to the availability of multiple suppliers and the lack of concentration in the supply chain.

Threat Of New Entrants

The threat of new entrants for The Bank of New York Mellon Corporation is low due to the high barriers to entry in the financial services industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry for The Bank of New York Mellon Corporation is high due to the presence of multiple competitors in the financial services industry, leading to a highly competitive market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 61.33%
Debt Cost 4.38%
Equity Weight 38.67%
Equity Cost 9.46%
WACC 6.34%
Leverage 158.62%

11. Quality Control: The Bank of New York Mellon Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
BNY Mellon

A-Score: 6.7/10

Value: 3.9

Growth: 6.6

Quality: 6.8

Yield: 5.0

Momentum: 8.5

Volatility: 9.7

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Ameriprise Financial

A-Score: 5.9/10

Value: 5.1

Growth: 7.8

Quality: 7.8

Yield: 2.0

Momentum: 4.0

Volatility: 8.7

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BlackRock

A-Score: 5.8/10

Value: 2.2

Growth: 5.3

Quality: 7.5

Yield: 4.0

Momentum: 7.0

Volatility: 9.0

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Blackstone

A-Score: 5.2/10

Value: 0.3

Growth: 4.1

Quality: 7.5

Yield: 7.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

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Ares Management

A-Score: 4.9/10

Value: 2.4

Growth: 5.7

Quality: 4.9

Yield: 6.0

Momentum: 4.0

Volatility: 6.3

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KKR

A-Score: 3.9/10

Value: 1.7

Growth: 6.6

Quality: 3.8

Yield: 2.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

113.95$

Current Price

113.95$

Potential

-0.00%

Expected Cash-Flows