BNY's assets under custody and administration climbed 12% in the quarter to $62.6 trillion. Its assets under management increased 6% to $2.2 trillion.
"We'll see what happens with the rest of this quarter's corporate earnings, because we're just at the beginning of that cycle, but if they do come out strong and they are expected to, then that supports valuations in a pretty significant way," Vince said.
"So there's plenty of room probably under that scenario for the stock market."
Its total fee revenue jumped 11% to $4.04 billion in the three months ended June 30. BNY said the increase reflected net new business as well as higher market values and client activity.
The bank's asset servicing business, which handles the safekeeping and settlement of trades, posted a 12% rise in revenue. Meanwhile, its issuer services segment, which supports clients issuing securities, reported a 23% increase.
BNY posted net income applicable to common shareholders of $1.7 billion, or $2.45 per share, for the second quarter. That compares with $1.4 billion, or $1.93 per share, a year earlier.
Shares of the oldest U.S. bank have surged 33% so far this year, handily outperforming the S&P 500.
Record second-quarter revenue and higher outlook
July 15 (Reuters) - BNY raised its 2026 revenue forecast above Wall Street expectations on Wednesday after posting record second-quarter revenue, driven by higher interest income, fees and rising equity markets that boosted the value of client assets.
BNY's second-quarter revenue reached a record $5.7 billion. The bank now expects full-year revenue to grow between 10% and 11%, versus its prior outlook of about 5%. Analysts on average were expecting 7.8%, according to estimates compiled by LSEG.
Market rally lifts client activity and asset values
U.S. stocks rallied in the second quarter, with the S&P 500 and the Nasdaq posting their biggest gains since 2020 as investors looked past volatility sparked by renewed conflict in the Middle East and AI-related swings in technology stocks.
"It's an active period for markets, a lot of things going on," CEO Robin Vince told Reuters. "The fundamental drivers of capital markets have been broadly constructive. Corporate earnings have been resilient."
The custodian bank's net interest income (NII) — the spread between earnings from assets and costs on liabilities — surged 20% in the second quarter.
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