BNY Mellon Q1 revenue hits $5.41B, margin expands 600bps to 37%
BNY Mellon’s Q1 adjusted EPS rose 42% to $2.25, beating the $1.93 consensus, while revenue climbed 13% to a record $5.41 billion, topping $5.17 billion estimates. Pre-tax operating margin expanded 600 basis points to 37%, net interest income jumped 18% to $1.37 billion and fee revenue rose 11% to $3.77 billion.
1. Strong Earnings and Record Revenue
BNY Mellon posted Q1 adjusted EPS of $2.25, a 42% increase from $1.58 in the prior year, surpassing the $1.93 consensus, as revenue rose 13% to a record $5.41 billion versus $4.79 billion a year ago and above the $5.17 billion estimate.
2. Margin and Profit Expansion
Pre-tax operating margin expanded 600 basis points to 37% and pre-tax profit ex-interest surged 78%, as net interest income climbed 18% to $1.37 billion on the reinvestment of securities at higher yields and fee revenue grew 11% to $3.77 billion driven by elevated market activity and net new business.
3. Asset Under Custody and Management Growth
Assets under custody and administration rose 12% year over year to $59.4 trillion, while assets under management increased 6% to $2.1 trillion, reflecting strong inflows and higher market valuations.