BNY Bank of New York Mellon 10-Q 2026-09-30 section summaries

Cover page

BNY filed a Form 10-Q for the quarter ended September 30, 2026. It had 672,898,490 common shares outstanding as of that date.

Its listed securities are common stock (NYSE: BNY), preferred capital securities (NYSE: BNY/P), and Series K preferred depositary shares (NYSE: PRK). BNY is identified as a large accelerated filer; it confirmed that it had submitted the reports and interactive data files required by law and that it is not a shell company.

BNY Q3 2026 financial highlights

Consolidated results

Q3 revenue grew 11.7% year over year, with fee and other revenue up 10.6% and net interest income up 15.1%. Revenue was nearly unchanged from Q2 2026’s $5.698 billion; Q3 net income and diluted EPS were below Q2’s $1.696 billion and $2.45, respectively. Fee revenue represented 72% of Q3 revenue, and non-U.S. revenue represented 36%.

Profitability and operating metrics

AUC/A includes $2.3 trillion at CIBC Mellon, BNY’s joint venture. BNY describes itself as a global financial-services platforms company serving over 90% of Fortune 100 companies and nearly all of the top 100 global banks. Its businesses span Securities Services, Market and Wealth Services, and Investment and Wealth Management.

Average balances and shares

Capital and other shareholder information

Capital ratios below compare Sept. 30, 2026 with Dec. 31, 2025. The filing states that effective U.S. capital ratios are the lower of the Advanced Approaches and Standardized Approach ratios.

The Board increased the quarterly common dividend 19%, from $0.53 to $0.63 per share; the Q3 dividend was paid Aug. 7, 2026. The Q3 payout ratio was 27%, and annualized dividend yield was 1.7%.

Q3 2026 highlights

Earnings and revenue

Total revenue increased 12% year over year. Fee revenue rose 12%, supported by net new business, higher client activity and market values, partly offset by AUM flow mix. Net interest income increased 15%, reflecting reinvestment of securities at higher yields and balance-sheet growth, partly offset by deposit margin compression.

Investment and other revenue declined, as fixed-income and equity trading activity, seed capital results, and the absence of the prior-year disposal gain more than offset other investment gains. The provision for credit losses was $1M. Noninterest expense increased 8%, primarily due to higher revenue-related expenses and investments, partly offset by efficiency savings. The effective tax rate was 22.8%.

Q3 2026 notable items included severance expense and litigation reserves. Q3 2025 notable items included a disposal gain, severance, litigation reserves, and a reduction in the FDIC special assessment.

Returns and business metrics

AUC/A growth reflected higher market values, net client inflows and new business, partly offset by U.S. dollar strength. AUM increased as higher market values were partly offset by cumulative net outflows and currency effects.

Capital and shareholder distributions

At September 30, 2026, the standardized CET1 ratio was 11.0%, down from June 30. Capital returned through repurchases and dividends, and a decline in AOCI, drove the decrease; earnings and lower risk-weighted assets partly offset it. The Tier 1 leverage ratio was 5.7%, also lower than at June 30, primarily reflecting lower capital.

BNY returned $1.4B to common shareholders during the quarter, including $937M of common share repurchases.

Fee and other revenue

In 3Q26, total fee and other revenue increased 11% year over year, with fee revenue up 12% and investment and other revenue lower. Fee revenue represented 72% of total revenue in both quarters. For YTD26, total fee and other revenue rose 11%; fee revenue increased 11%, while investment and other revenue increased to $662 million from $622 million. Fee revenue was 71% of total revenue, compared with 72% in YTD25.

Fee revenue lines

Investment services fees grew 15% in 3Q26 and 13% YTD26, reflecting net new business, higher client activity and market values. Investment management and performance fees increased 3% for the quarter (also 3% on a constant-currency basis) and 5% YTD; higher market values were partly offset by AUM flow mix. Performance fees were $2 million in 3Q26 versus $6 million in 3Q25. Foreign exchange revenue increased 19% in the quarter and 23% YTD, driven by higher client transaction volumes; it is exposed to client activity, spreads, market volatility, hedging and currency remeasurement. Financing-related fees declined 1% in 3Q26, reflecting lower commitment fees, but rose 8% YTD. Distribution and servicing fees increased 3% in both periods.

Investment and other revenue detail

The 3Q26 decline in investment and other revenue primarily reflected fixed-income and equity trading activity, seed capital results and the absence of the prior-year disposal gain, partly offset by higher other investment gains. YTD growth reflected higher investment-related gains, partly offset by the absence of prior-year disposal gains and higher net investment securities losses. BNY notes that consolidated fund results should be considered alongside noncontrolling-interest income or loss, because it has no economic interest in the noncontrolling portion.

Assets and flows

AUC/A increased 10%, reflecting higher market values, net client inflows and new business, partly offset by the stronger U.S. dollar. Its asset mix shifted to 40% equities and 60% fixed income from 38% and 62%, respectively. AUC/A includes CIBC Mellon assets of $2.3 trillion, versus $2.1 trillion a year earlier. AUM rose 2%; higher market values were partly offset by cumulative net outflows and the stronger U.S. dollar.

Net interest income and margin

GAAP NII increased 15% in 3Q26 and 18% YTD26; NIM expanded 12 basis points in both periods. Higher yields earned on reinvested securities and balance-sheet growth drove the improvement, partly offset by deposit-margin compression. The FTE adjustment did not affect net income.

Interest income, expense and average balances

Average interest-earning assets grew 6% in 3Q26 and 8% YTD26, reflecting higher average loans and investment securities. Despite growth in earning assets, interest income declined in both periods; lower interest expense—alongside lower average deposit costs and liability rates—supported the increase in NII. Average non-U.S.-dollar deposits were approximately 25% of average total deposits in 3Q26, and about half of those deposits were euro-denominated.

Reported federal-funds and resale-agreement yields and repurchase-agreement rates are substantially affected by enforceable netting. Average netting was approximately $190B in 3Q26 versus $241B in 3Q25, and $219B YTD26 versus $238B YTD25. Excluding netting, rates were:

These adjusted rates better reflect actual rates earned and paid.

Other reported operating results

Noninterest expense increased 8% in 3Q26 and 7% YTD26, driven by revenue-related costs and investments, as well as salary increases YTD, partly offset by efficiency savings. Period-end employees declined 5% to 46,600 from 49,200.

Segment review

BNY’s segment results use management-basis accounting. In 1Q26, Managed Accounts Solutions moved from Securities Services’ Asset Servicing to Market and Wealth Services’ Wealth Solutions, and 3Q25 and 9M25 comparatives were revised. There were no segment reclassifications or organizational changes in 3Q26.

3Q26 segment results

($ millions, except margins)

Revenue by business line

Business drivers and trends

Securities Services revenue rose 15% in 3Q, with growth in both Asset Servicing (+12%) and Issuer Services (+27%). Issuer Services benefited from higher Corporate Trust revenue, including pass-through activity for its financial-agent role on Trump Accounts. For 9M26, revenue was $8.326B versus $7.197B (+16%), pre-tax income was $3.160B versus $2.392B, and margin was 38.0% versus 33.2%. Asset Servicing revenue was $6.421B versus $5.535B (+16%), while Issuer Services was $1.905B versus $1.662B (+15%); thus, Issuer Services’ growth moderated from its 3Q pace, while Asset Servicing’s accelerated. 9M results included first-quarter 2026 Asset Servicing investment gains and did not repeat a first-quarter 2025 Issuer Services disposal gain. Segment expense growth reflected revenue-related costs and investments, partly offset by efficiency savings and lower severance.

Market and Wealth Services revenue increased 12% in 3Q. 9M26 revenue was $5.846B versus $5.231B (+12%), pre-tax income was $3.005B versus $2.531B, and margin was 51.4% versus 48.4%. 9M line revenue was $2.402B versus $2.223B for Wealth Solutions (+8%), $1.695B versus $1.477B for Payments and Trade (+15%), and $1.749B versus $1.531B for Clearance and Collateral Management (+14%). Growth reflected higher net interest income, new business, client activity and market values, as well as higher collateral balances and clearance volumes; expense increases were partly offset by efficiencies.

Investment and Wealth Management revenue grew 4% in 3Q. Investment Management’s 1% increase reflected higher market values partly offset by AUM flow mix; Wealth Management grew 11%, primarily on higher net interest income and market values. 9M26 revenue was $2.545B versus $2.404B (+6%); pre-tax income was $477M versus $395M, and margin was 18.7% versus 16.4%. Investment Management revenue was $1.689B versus $1.620B (+4%), supported by higher market values and a weaker U.S. dollar but partly offset by flow mix and lower performance fees. Wealth Management revenue was $856M versus $784M (+9%). Non-U.S. sources contributed 28% of segment revenue in both 3Q26 and 3Q25. Expense increases reflected revenue-related costs, investments and salary increases, partly offset by efficiency savings.

Other segment revenue was broadly stable in 3Q, but its pre-tax loss widened. Revenue comparison reflected no repeat of 3Q25 real-estate sale gains, partly offset by a 3Q26 strategic equity investment gain. Higher expense reflected the absence of a 3Q25 FDIC special-assessment adjustment and higher severance. For 9M26, revenue was $40M versus $43M and the pre-tax loss was $199M versus $131M; the wider loss primarily reflected a $66M increase in expense, including higher staff expense and the absence of lower litigation reserves in 9M25. Revenue declined $3M as higher net investment securities losses were partly offset by investment-related gains. Corporate treasury and other investment activity, including hedging, can shift effects between fee and other revenue and net interest expense.

Selected operating metrics

Securities Services’ AUC/A growth reflected higher market values, net client inflows and new business, partly offset by the stronger U.S. dollar. Securities lending revenue was $92M versus $62M in 3Q and $242M versus $170M for 9M. In Market and Wealth Services, average loans were $57.671B versus $46.278B and average deposits were $103.556B versus $97.508B for 9M; Wealth Solutions’ 3Q average collateral balances were $8.263T versus $7.275T. Average loans and deposits in Securities Services were $12.534B versus $10.706B and $191.647B versus $183.070B, respectively, in 3Q.

Investment and Wealth Management AUM declined from $2.226T at June 30, 2026. 3Q flows included $10B of long-term strategy inflows, partly offset by $22B of short-term cash outflows, for $12B of total net outflows; a $27B negative market impact also weighed on AUM. Lower-fee product demand and shifts toward performance-based fees affect the business. BNY estimates that a 5% global-equity-market change spread evenly over a year would affect fee revenue by less than 1% and diluted EPS by $0.05–$0.08. Foreign-currency movements have a greater effect on this segment’s growth than on other segments, but are not expected, in isolation, to materially affect consolidated net income.

Critical accounting estimates and goodwill impairment risk

BNY identifies the allowance for credit losses, goodwill and other intangible assets, and litigation and regulatory contingencies as critical accounting estimates.

In Q3 2026, after its Q2 2026 interim goodwill test and in light of macroeconomic conditions, BNY retested the Investment Management reporting unit, which had $6.3B of allocated goodwill. Based on management’s projections as of Sept. 30, 2026, the unit’s estimated fair value exceeded its carrying value by only approximately 3%. BNY used an income approach and a 10.25% discount rate.

The valuation is sensitive to its assumptions: a 25-basis-point increase or decrease in the discount rate would lower or raise estimated fair value by approximately 5%, respectively; a 10-basis-point increase or decrease in the long-term growth rate would raise or lower fair value by approximately 1%, respectively. Because projections extend far into the future and are inherently uncertain, changes in assumptions or discount rates could result in a material, non-cash goodwill impairment.

Balance sheet and funding

Assets grew mainly from higher loans, federal funds sold and resale agreements, and trading assets. Loans rose to 18% of assets from 17%, while investment securities declined to 31% of assets from 32%. Available funds increased in dollars but fell to 36% of assets from 37%. Interest-bearing deposits were 64% of interest-earning assets, compared with 66%. Long-term debt increased as issuances were partly offset by maturities and redemptions, and by a lower fair value of hedged debt.

Investment securities and interest-rate exposure

The portfolio’s amortized cost was $153.918B. The net unrealized loss widened primarily because of higher interest rates; at September 30, it comprised a $1.934B pre-tax loss on available-for-sale (AFS) securities, net of hedges, and a $4.171B loss on held-to-maturity (HTM) securities. AFS securities had a fair value of $105.3B (71% of the portfolio), and HTM securities $42.6B (29%). Securities rated AAA/AA- remained 96% of the portfolio. The increase in fair value from year-end primarily reflected agency RMBS and U.S. Treasuries, partly offset by unrealized losses during the first nine months of 2026 and lower non-U.S. government securities and agency commercial MBS.

In 3Q26, the amortizable net purchase discount was $2.936B, versus $1.614B in 3Q25. Net amortization, which reduced net interest income, was $117M versus $53M; including accretion of discontinued hedges, net accretion was $160M versus $106M.

Country exposure

The top 10 non-U.S. country exposures totaled $82.6B at September 30, 2026, about 65% of total non-U.S. exposure. The largest were the UK at $21.8B and Germany at $21.3B. Brazil exposure was $1.5B, primarily short-term trade-finance loans to large financial institutions. Russia exposure was $1.6B, consisting of Securities Services cash balances; it could increase if client-benefit cash subject to distribution restrictions rises. BNY has stopped new banking business in Russia and suspended investment-management purchases of Russian securities. Russian securities remain insignificant relative to AUC/A and AUM.

Lending exposure and credit quality

Total lending-related exposure rose 6%. Financial-institution and commercial exposures together made up 43% of total exposure, down from 44%, and were BNY’s largest concentrated lending risks. Margin loans are collateralized by marketable securities, with borrowers required to maintain daily collateral above 100% of loan value.

Financial-institution exposures were 96% investment grade; 74% were due within one year and 41% within 90 days, compared with 19% due within 90 days at year-end. Fifty-eight percent were secured, including $8.6B of secured intraday dealer credit for tri-party repo activity. Bank exposures were 85% investment grade and 94% due within one year; non-investment-grade exposure was primarily Brazilian trade finance. Commercial exposures were 97% investment grade, with 20% due within one year.

CRE was 70% secured by real estate. Office exposure was $2.5B, of which 75% was secured; CRE concentrations included the New York metro area (36%) and REITs/real estate operating companies (31%). Wealth-management mortgages totaled $8.8B, with less than 1% past due and a 62% weighted-average loan-to-value ratio at origination. Credit quality in the financial-institution and commercial portfolios relies on internal ratings that can change; ratings for non-U.S. counterparties are generally capped at the sovereign rating of their country of residence.

Credit quality and allowance for credit losses

BNY focuses on investment-grade clients that use its non-credit services. Its primary credit exposures are funded loans, lending commitments, standby letters of credit, and custody and securities-clearance overdrafts.

Total loans were $89.163B at Sept. 30, 2026, up from $75.195B a year earlier. Despite loan growth, loan-loss allowance coverage declined to 0.25% of loans from 0.36%; loan-loss plus lending-commitment coverage declined to 0.35% from 0.45%.

The allowance for loans and lending commitments was $314M at Sept. 30, 2026, compared with $319M at Dec. 31, 2025. Commercial real estate (CRE) remained its largest allocation, though its share declined; allocations to financial institutions, commercial credits, and capital-call financing increased.

Allowance estimates rely on forecasts and borrower ratings, and realized losses could differ materially. Sensitivity analysis indicated that a 10% increase in CRE values and a one-grade improvement in other credits would reduce the quantitative allowance by $48M; a 10% decline in CRE values and a one-grade deterioration in other credits would increase it by $83M. The Sept. 30 forecast weighted baseline and downside scenarios equally, with the remainder assigned to upside. A 100% downside weighting would increase the allowance by approximately $91M; downside assumptions include negative GDP growth, rising unemployment, and falling CRE prices.

Nonperforming assets

The $106M decline in nonperforming assets was mainly driven by lower nonperforming CRE loans.

Deposits and funding

Deposit growth reflected increases in U.S. interest-bearing and noninterest-bearing balances, partly offset by lower non-U.S. interest-bearing deposits. BNY primarily funds operations with deposits, supplemented by short-term borrowings and long-term debt. In Q3 2026, Pershing LLC began issuing commercial paper with maturities of up to 397 days; the paper is not redeemable before maturity or subject to voluntary prepayment. Other short-term funding sources include repo-related funding, customer and broker-dealer payables, commercial paper, overdrafts, credit-line borrowings, and Federal Home Loan Bank borrowings. Customer payables can vary with trading activity and market volatility.

Liquidity and funding

BNY’s available funds increased to $179.217B at Sept. 30, 2026, from $176.409B at Dec. 31, 2025, although they declined to 36% of total assets from 37%. Higher federal funds sold and resale agreements and cash and due from banks more than offset lower interest-bearing central-bank deposits. Average available funds were also higher year over year.

Funding balances reflected increased client activity and greater use of wholesale funding. Average non-core funding rose primarily because of higher federal funds purchased and repurchase agreements. Average deposits and customer and broker-dealer payables also increased, reflecting client activity, trading activity and market volatility; average long-term debt was unchanged. A significant decline in Securities Services or Market and Wealth Services client activity could reduce BNY’s access to deposits.

Regulatory and parent-company liquidity

Liquidity remained above regulatory minimums. Consolidated HQLA before adjustments declined from June quarter-end; after haircuts and trapped-liquidity effects, HQLA was $165B. Average adjusted HQLA was $140B in Q3, compared with $142B in Q2. Average LCR was 111% in both quarters and remained above the 100% minimum throughout Q3; average NSFR was 129%, versus 130%, against a 100% requirement.

The Parent targets enough unencumbered cash and cash equivalents at each quarter-end to cover forecast debt maturities and redemptions, net interest, net taxes and specified collateral needs for the next 18 months. BNY also monitors intraday liquidity under normal and reasonably severe stress conditions. Parent liquidity sources include capital-market access, subsidiary dividends, cash on hand and a committed credit facility with its intermediate holding company. Nonbank Parent subsidiaries held approximately $4.4B of liquid assets at Sept. 30, 2026.

Parent long-term senior ratings were Aa3 from Moody’s, A from S&P, AA- from Fitch and AA from Morningstar DBRS; in October 2026, the Parent’s outlook was revised to positive from stable. Double leverage rose to 119.4% from 118.6%, remaining within management’s target range. BNY cites high unencumbered liquid assets at principal subsidiaries, its fee-based model (fee revenue was 72% of Q3 2026 revenue) and bank-subsidiary dividend capacity as support. Higher double leverage can increase Parent cash needs for interest and debt maturities.

Debt, capital and returns

Long-term debt increased as issuances exceeded maturities and redemptions, partly offset by a decrease in the fair value of hedged long-term debt. $500M matured in October 2026, with no further long-term debt maturities scheduled for the rest of the year. Commercial paper outstanding increased; Pershing LLC began issuing commercial paper in Q3 2026.

Long-term debt issuances of $7.6B were partly offset by $5.0B of maturities and redemptions. Average commercial paper was $3.0B for 9M 2026, versus $2.4B for 9M 2025. Parent preferred stock declined following Series F and H redemptions, partly offset by Series M and N issuance. In October 2026, the Parent issued Series O preferred depositary shares with a 7.125% annual dividend rate through Dec. 20, 2031, then a floating rate based on the five-year Treasury rate plus 2.192%.

In July 2026, the Board raised the quarterly common dividend 19%, from $0.53 to $0.63 per share; the increased dividend was paid Aug. 7, and the Q3 payout ratio was 27%. BNY repurchased 5.8M common shares in Q3 at an average $160.51 per share, for $937M.

Cash flows

Higher operating cash flow primarily reflected earnings and changes in accruals and other items, partly offset by trading-asset and liability changes. Investing outflows were lower, primarily due to changes in loans, federal funds sold and resale agreements, and investment securities. Financing inflows declined, reflecting long-term debt issuance and changes in repurchase-agreement funding, commercial paper and deposits, partly offset by debt repayments and redemptions and common-stock repurchases.

Capital, equity and shareholder returns

At September 30, 2026, BNY’s total shareholders’ equity was lower than at year-end, primarily reflecting common-share repurchases and dividends, lower accumulated other comprehensive income (AOCI), and net preferred-stock redemptions, partly offset by earnings. Common equity and non-GAAP tangible common equity also declined. In contrast, book value per common share and tangible book value increased.

BNY repurchased 22.1M common shares during 9M26 at an average price of $136.73 per share, for $3.0B. The $6.0B authorization announced in April 2024 was exhausted in Q2 2026; BNY announced a new $10.0B authorization in April 2026.

Preferred stock was $4.259B at September 30, 2026, down from $4.836B at year-end. Redemptions of Series F and H were partly offset by Series M and N issuances. BNY issued 500,000 Series N depositary shares in July and redeemed all Series F shares in September; subsequent to quarter-end, it issued 1.25M Series O depositary shares in October. After-tax unrealized losses on the available-for-sale (AFS) portfolio, net of hedges, increased to $1.5B from $241M, primarily reflecting higher interest rates.

Regulatory capital

BNY and its U.S. bank subsidiaries remained “well capitalized.” Consolidated capital ratios declined, reflecting capital returns, higher risk-weighted assets (RWAs), lower AOCI, higher average assets and lower capital, partly offset by earnings.

During 3Q26, CET1 fell $596M, from $21.564B to $20.968B. Net income applicable to common shareholders added $1.608B and goodwill/intangible adjustments added $10M; share repurchases used $937M and dividends $436M. Other comprehensive loss was $957M, including $943M of AFS unrealized losses, $18M of cash-flow-hedge losses and $7M of foreign-currency translation losses, partly offset by $11M from defined-benefit plans. Additional paid-in capital contributed $137M.

Requirements, buffers and risks

The Federal Reserve kept BNY’s stress capital buffer at the 2.5% regulatory floor through September 30, 2027. BNY and its insured depository subsidiaries adopted the enhanced SLR final rule on April 1, 2026.

Falling below TLAC minimums with buffers can constrain dividends, share repurchases and discretionary executive compensation. Capital ratios may fluctuate with customer trading, deposits, market stress and balance-sheet size, and may change materially with regulatory model approvals, calibration or guidance. Operational losses across the industry, including fines and penalties, can increase required capital; failure to meet capital or “well capitalized” standards could limit BNY’s activities and harm its financial condition.

Trading activities and risk management

BNY’s trading is primarily customer market-making, trade facilitation and risk-mitigating hedging, subject to the Volcker Rule. Positions are managed using limits, VaR and other sensitivity measures. VaR is a one-day, 99%-confidence historical-simulation measure; it excludes consolidated investment-management funds and seed-capital investments. It may not capture extreme losses over longer horizons, shifts in market liquidity or future market moves unlike those in the historical data.

Value at Risk

Average overall VaR rose year over year in Q3 and YTD, with higher average interest-rate and FX component VaR. In Q3 2026, interest-rate and FX risk each accounted for 48% of average gross VaR, credit 4%, and equity less than 1%. Diversification substantially reduced gross VaR. Daily trading losses did not exceed calculated overall VaR.

Trading revenue distribution

Trading revenue includes realized and unrealized gains and losses, primarily on customer FX transactions, derivatives and securities trades; it excludes commissions, underwriting fees and net interest income.

Trading balances and counterparty exposure

OTC derivative assets, including hedging relationships, were $3.6B and included a $5M credit valuation adjustment (CVA) deduction. OTC derivative liabilities were $2.9B and included an $11M debit valuation adjustment (DVA) related to BNY’s own credit spread. Net of hedges, CVA increased by less than $1M and DVA by $2M in Q3 2026, together reducing other trading revenue by $2M; the comparable net CVA/DVA impact reduced revenue by less than $1M in Q3 2025. Derivative fair values are sensitive to BNY’s and counterparties’ credit spreads and ratings. A material deterioration in counterparty ratings could increase credit risk.

Interest-rate risk management

BNY’s primary market risk is exposure to changes in U.S.-dollar and certain foreign-currency interest rates. It uses earnings-simulation and discounted-cash-flow models to assess this exposure. The earnings simulation estimates the change in pre-tax net interest income (NII) over 12 months relative to a baseline.

Estimated 12-month pre-tax NII impact

Millions; instantaneous rate changes

BNY characterized its Sept. 30, 2026 position as overall balanced. Compared with a year earlier, modeled impacts were less negative in parallel down-rate scenarios but more negative in parallel up-rate scenarios.

Model assumptions and deposit sensitivity

The model applies instantaneous shifts across currencies and assumes deposit balances and mix remain static, with no management actions to mitigate rate changes. Its baseline uses quarter-average deposits; other assumptions include forward rates, deposit pricing, credit spreads, loan and securities prepayments, and derivatives. These assumptions are uncertain, and actual NII may differ materially from modeled results. Impacts may be nonlinear and should not be extrapolated to more severe shocks. Long-term rates refer to tenors of at least three years; short-term rates refer to tenors of three months or less.

Deposit balances and mix are important drivers not captured by the static-deposit comparisons, particularly because noninterest-bearing deposits are sensitive to short-term rates. BNY estimates that an instantaneous $5 billion change in U.S.-dollar noninterest-bearing deposits would change modeled NII sensitivity by approximately $270 million in the up-100-bps scenario and $170 million in the down-100-bps scenario. A reduction in deposits would worsen the modeled outcomes; an increase would improve them. Effects would be smaller if the deposit change included a mix of interest-bearing and noninterest-bearing deposits. During periods of low short-term rates, BNY typically waives money-market mutual fund and similar fees to protect investors from negative returns.

Supplemental non-GAAP measures

BNY presents certain non-GAAP measures alongside GAAP results to reflect how management evaluates performance. These measures are supplemental and should not be viewed as substitutes for GAAP results.

• Tangible-basis measures exclude goodwill and intangible assets, net of deferred tax liabilities. They include return on tangible common shareholders’ equity and tangible book value per common share, which are intended to help assess income-generating assets and tangible assets relative to common shares.
• Measures excluding notable items adjust revenue and expenses for items such as disposal gains, severance expense, litigation reserves and the FDIC special assessment. Litigation reserves represent accruals for loss contingencies that are probable and reasonably estimable; they exclude standard business-related legal fees. Related adjusted measures include income before taxes, net income applicable to BNY common shareholders, diluted EPS, returns on common equity and tangible common equity, and pre-tax operating margin.
• Constant-currency growth for investment management and performance-fee revenue is calculated by applying current-period exchange rates to prior-period revenue, to isolate the effect of foreign-exchange movements.

This section explains the definitions and rationale for the supplemental measures.

BNY — 3Q26 non-GAAP reconciliation and returns

Revenue growth outpaced adjusted noninterest-expense growth in both 3Q26 and YTD26, accompanying higher earnings and improved pre-tax margins. Adjustments include disposal gains and losses, severance, litigation reserves, and FDIC special assessments.

Revenue, expenses and earnings

Pre-tax income and margins

Returns and tangible equity

Period-end book value and shares

Investment-management and performance fees

The reconciliation reports no foreign-exchange impact in 3Q26.

Recent accounting and regulatory developments

BNY reported no quantified financial impact from the developments described. It is assessing the effects of several accounting updates and proposed or newly issued regulatory requirements.

Accounting developments

• Expense disclosures (ASU 2024-03): The standard will require more detailed disclosures of specified expenses, including employee compensation, depreciation, and intangible-asset amortization, as well as total selling expenses and an annual definition of selling expenses. It applies to annual periods beginning after Dec. 15, 2026, and interim periods beginning after Dec. 15, 2027. BNY is assessing the disclosure impact.
• Internal-use software (ASU 2025-06): The update changes the accounting for internal-use software costs, including the threshold for recognizing costs based on whether a project is probable of completion. It is effective for annual periods beginning after Dec. 15, 2027, and permits prospective, retrospective, or modified prospective application. BNY is evaluating the update.
• Hedge accounting: A proposed update would allow interest-rate hedging of held-to-maturity securities, broaden eligible SOFR benchmark rates, and permit certain float-to-float cross-currency swaps in net investment hedges. In October 2026, the FASB affirmed the proposal’s amendments and directed staff to prepare a final ASU; BNY is evaluating it.

Regulatory developments

• Federal Reserve stress testing: Rules issued Sept. 30, 2026, require annual public comment on material changes to stress-test models and scenarios. A separate rule will set stress capital buffer (SCB) requirements using the average of the two most recent stress-test results, beginning in 2029 with the 2027 and 2028 tests. The Fed also proposed revising its noninterest-income stress-test model to better reflect differences among firms. BNY is assessing the impact.
• Supervision and enforcement: Updated Federal Reserve supervisory principles direct examiners to prioritize risks likely to cause significant harm to a firm’s financial condition, other firms, the Deposit Insurance Fund, resolvability, or U.S. financial stability. An OCC/FDIC rule adopted Aug. 27, 2026, narrows “unsafe or unsound practice” to conduct contrary to prudent-operation standards that is likely to cause, has caused, or creates likely material risk of, harm—including risk of loss to the Deposit Insurance Fund. It also limits matters requiring attention (MRAs) to specified legal violations or conduct meeting material-harm or deposit-insurance-loss-risk standards. Separately, the OCC proposed allowing MRAs for “substantive,” rather than only “actual,” violations; BNY is assessing the proposal.
• Insider lending: Federal Reserve and FDIC proposals would modernize insider-lending rules, including indexing certain thresholds to nominal GDP and aligning the methods for updating thresholds. The agencies expect the changes to reduce burden; BNY is assessing them.
• Stablecoins under the GENIUS Act: Federal Reserve proposals would require supervised payment-stablecoin issuers to fully back stablecoins with permissible reserve assets, set standardized capital requirements, establish safeguards for backing assets held by supervised firms, and create an application process for supervised banks seeking to issue stablecoins. The OCC’s final rule, effective Jan. 18, 2027, sets requirements for OCC-supervised issuers covering reserves, custody, redemption, capital, and risk management. These developments may create compliance and operational requirements while establishing a regulatory framework for stablecoin issuance and custody relevant to BNY’s activities.

BNY makes its SEC filings, earnings materials, selected management calls and presentations, regulatory disclosures—including Pillar 3 information, liquidity and funding ratios, regulatory reports and stress-test results—and corporate governance documents available on its Investor Relations website, generally as soon as reasonably practicable after filing or furnishing them to the SEC. BNY may also share information through LinkedIn, X and other social-media channels; because those communications may contain material information, investors are encouraged to monitor them. Website and social-media content is not incorporated into the Form 10-Q.

BNY — Q3 and nine months ended September 30, 2026

Consolidated results

Revenue increased 11.7% in Q3 and 12.6% for the first nine months, while noninterest expense grew 7.8% and 6.5%, respectively. Higher net interest income supported growth despite lower interest income, as interest expense declined more sharply. Fee growth was led by investment services fees. Average diluted shares declined in both periods.

Comprehensive income

Securities valuation changes, principally unrealized losses on available-for-sale (AFS) securities, weighed on comprehensive income even as net income increased.

Balance sheet and capitalization

Assets grew while shareholder equity declined. Tangible common equity is calculated as BNY shareholder equity less goodwill and other intangible assets. The balance sheet also showed higher loans, trading assets, commercial paper and repurchase-agreement liabilities; central-bank deposits decreased.

Cash flow and capital returns

BNY acquired $3.023 billion of treasury stock, compared with $2.490 billion in the prior-year period, and paid $1.386 billion in cash dividends, versus $1.269 billion. Common shares outstanding, calculated as issued shares less treasury shares, fell from 688.236 million at December 31, 2025 to 672.898 million at September 30, 2026. Stock-based compensation credited to additional paid-in capital was $531 million, compared with $452 million.

Management’s estimates depend on assumptions about future economic and market conditions; actual conditions could be worse than anticipated and materially affect results and financial condition.

Investment securities

At September 30, 2026, BNY’s investment securities had $153.918B of amortized cost and $147.813B of fair value, compared with $150.516B and $147.483B, respectively, at December 31, 2025. The portfolio comprised:

Gross unrealized losses increased to $6.210B from $3.635B. BNY attributed the losses primarily to higher interest rates since purchase or, for securities transferred into the portfolios, since transfer—not to a material increase in credit risk.

HTM credit quality remained high: 98% of the portfolio was rated AAA/AA− and 2% A+/A− at both dates. No securities were rated below those grades or unrated, except for the small other-debt-securities balance. Non-U.S. government HTM holdings were primarily exposures to the UK, Netherlands, France and Germany.

Realized results

YTD26 losses included $36M on non-U.S. government securities, $25M on foreign covered bonds and $39M on other securities.

Portfolio maturity and yield

At September 30, 2026, the maturity-distribution table showed total carrying amount of $151.984B and a 3.27% tax-equivalent yield. Yields are based on amortized cost and reflect contractual coupons and premium amortization or discount accretion; they exclude related hedging derivatives.

Pledged assets and collateral

Pledged assets increased to $152B from $147B. At September 30, $97B was pledged for potential Federal Reserve Discount Window borrowing and $10B for FHLB borrowing. The pledged assets comprised $124B of securities, $21B of loans, $6B of trading assets and $1B of interest-bearing bank deposits. BNY said it had not borrowed at the Discount Window and regularly moves assets into and out of that pledged account.

Loan portfolio

BNY’s loans, net of unearned income, increased 10.6% to $89.163 billion at September 30, 2026, from $80.615 billion at December 31, 2025. Growth was led by margin lending and loans to financial institutions.

Credit-profile totals exclude overdrafts: amortized-cost loans were $86.141 billion at September 30, 2026, versus $77.815 billion at year-end 2025; accrued interest receivable was $303 million versus $286 million. At September 30, 2026, $14.097 billion of financial-institution loans and $2.211 billion of commercial loans were classified as investment grade, out of $15.876 billion and $2.267 billion, respectively.

Credit profile and lending approach

BNY focuses on investment-grade clients that actively use its non-credit services. Margin loans, the largest category, are secured by marketable securities; borrowers must maintain daily collateral margin above 100% of loan value, and BNY reports rarely incurring losses on this lending. Of financial-institution loans, 96% were investment-grade equivalent, 58% secured, and 74% due within one year.

CRE lending targets experienced owners and moderate leverage supported by property cash flows, and includes construction and renovation facilities. Wealth-management loans are generally secured by customers’ investment-management or custody accounts; loans against other assets are assessed individually and are not considered investment grade. Wealth-management mortgages are primarily interest-only, adjustable-rate loans to high-net-worth borrowers, with a 62% weighted-average loan-to-value ratio at origination. Their geographic concentrations were California 20%, New York 14%, Florida 12%, Massachusetts 8%, and other locations 46%.

Capital-call financing is secured by private-equity fund investors’ capital commitments and funds’ rights to call capital. Other loans primarily comprise consumer loans collateralized by securities and funds. Custody- and securities-clearance-related overdrafts are generally repaid within two business days.

Credit-loss allowance and activity

The allowance for loan losses and lending-related commitments declined to $314 million at September 30, 2026, from $335 million at September 30, 2025, and $319 million at December 31, 2025. The September 2026 balance comprised $220 million for loan losses and $94 million for lending-related commitments.

Quarterly provision figures exclude a $1 million credit-loss benefit for other financial instruments in each period; nine-month figures exclude benefits of $3 million in 2026 and $7 million in 2025. There were no gross loan write-offs in the first nine months of 2026. In the prior-year period, $25 million of gross charge-offs were offset by $7 million of recoveries.

Asset quality and other credit matters

Asset quality improved materially from year-end 2025, notably as CRE nonperforming loans fell to zero.

Individually evaluated impaired loans were $32 million at September 30, 2026, with no associated loan-loss allowance, compared with $323 million and a $42 million allowance at September 30, 2025. The 2026 balance comprised $32 million of collateral-dependent loans with $50 million of collateral value; the 2025 balance was collateral-dependent and had $350 million of collateral value.

BNY made no loan modifications in Q3 2026, and none of the loans modified in the preceding 12 months was more than 90 days past due at quarter-end. In Q3 2025, it modified a $123 million CRE loan through a maturity extension and a residential mortgage of less than $1 million through maturity extension and payment modifications. Reverse repurchase agreements were fully secured with high-quality collateral at both reporting dates and had no related credit-loss allowance.

Goodwill and intangible assets

Goodwill

At Sept. 30, 2026, goodwill before accumulated impairment losses was $17.408B; accumulated impairment losses were $680M, all in Investment and Wealth Management. The 2026 year-to-date rollforward included a $39M reduction from foreign-currency translation and a first-quarter realignment within Managed Accounts Solutions that shifted $59M of goodwill from Securities Services to Market and Wealth Services, with no effect on consolidated goodwill. For comparison, the 2025 year-to-date rollforward included $206M of favorable currency translation, $18M of dispositions, and $13M of other reductions.

In Q3 2026, BNY conducted an interim impairment test of the Investment Management reporting unit, which had $6.3B of allocated goodwill, following a Q2 interim test and in light of macroeconomic conditions. No additional goodwill impairment was recognized. Goodwill is tested at least annually and sooner when events or circumstances may indicate that a reporting unit’s fair value is below its carrying value.

Intangible assets

The 2026 year-to-date decrease included $28M of amortization and $3M of unfavorable currency translation. A $44M client realignment shifted intangible assets from Securities Services to Market and Wealth Services without changing the consolidated balance.

At Dec. 31, 2025, total intangible assets had $4.188B gross carrying value, $1.366B accumulated amortization, and $2.822B net carrying value. Estimated annual amortization expense is $37M for 2026, $31M for 2027, $27M for 2028, $24M for 2029, and $19M for 2030. Indefinite-lived intangible assets are tested for impairment annually or more often if impairment indicators arise.

Other assets

Other assets totaled $29.947B at Sept. 30, 2026, up $3.507B from $26.440B at Dec. 31, 2025. The largest increases were in fails to deliver (+$1.838B), other assets (+$504M), accounts receivable (+$419M) and fair value of hedging derivatives (+$374M). Income taxes receivable declined $368M. “Other” includes Federal Home Loan Bank stock of $57M at both dates.

Non-readily marketable equity securities

Non-readily marketable equity securities, included in other equity investments, were $559M at Sept. 30, 2026, compared with $438M at Dec. 31, 2025. They are carried at cost less impairment, with adjustments for observable orderly transaction price changes in identical or similar securities. Those changes are recorded in investment and other revenue.

Life-to-date observable price adjustments were $419M upward and $(102)M downward, for a $317M net increase.

Tax credit investments

These investments fund affordable housing and renewable energy projects, primarily to obtain income tax credits and other tax benefits, and sometimes project cash distributions. Under the proportional amortization method, amortization is recognized with tax credits and other tax benefits in the income tax provision.

Future funding commitments were $846M at Sept. 30, 2026, down from $946M at Dec. 31, 2025; most of the Sept. 30 commitments are expected to be funded over the next five years. These commitments are recorded in other liabilities.

Investments measured using NAV

Seed investments are generally redeemable on request, subject to the underlying funds’ liquidation and notice periods of up to seven days. Private equity investments, primarily Volcker Rule-compliant SBICs, have no redemption rights; distributions depend on liquidation of underlying investments, which have 10-year lives.

Note 6 — Contract revenue

Fee and other revenue in Securities Services, Market and Wealth Services, and Investment and Wealth Management is primarily variable, driven by assets under custody/administration, assets under management, and client transactions. Segment figures are prepared on an internal management basis, not GAAP. Revenue outside ASC 606 is primarily investment services, foreign exchange, financing-related, and investment and other revenue accounted for under other guidance.

Fee and other revenue by segment

Contract revenue by fee type

Investment services fees were the largest contract-revenue category. The 2025 comparative segment results were revised to reflect the Q1 2026 transfer of Managed Accounts Solutions clients from Securities Services to Market and Wealth Services. Investment and Wealth Management revenue is net of income/(loss) attributable to noncontrolling interests: Q3 2026 was $(3)M versus $12M in Q3 2025; for the first nine months, it was $26M in both years.

Contract balances and costs

Unbilled accrued revenues are usually billed annually. Revenue recognized from opening contract liabilities was $95M in the first nine months of 2026; $76M was recognized in Q3 from liabilities at June 30. Amortization of capitalized sales incentives was $3M in both Q3 periods and $8M in 9M 2026 versus $10M in 9M 2025. No unsatisfied performance obligations are disclosed beyond contracts covered by ASC 606 practical expedients.

Related results in Notes 7–8

Net interest income

Net interest income increased because the reduction in interest expense more than offset lower interest income.

Employee benefits

Q3 2026’s $39M credit comprised $32M from domestic pension, $7M from foreign pension, and no healthcare credit.

Variable interest entities

BNY’s VIE interests include customer-funded investment funds, which generate management fees and, in some cases, performance fees; BNY may also provide start-up capital. BNY also invests in unconsolidated VIEs, primarily affordable-housing and renewable-energy tax-credit investments.

Consolidated investment management funds

The 2026 amounts include voting model entities with $114 million of assets, $6 million of liabilities and $3 million of nonredeemable noncontrolling interests; there were no such entities at Dec. 31, 2025. Net assets of these VIEs are available only to settle the VIEs’ liabilities and investors’ liquidation requests, including BNY’s seed capital.

Non-consolidated VIEs

Maximum loss exposure comprises BNY’s investments plus unfunded commitments and declined over the period. BNY stated that it provided no support to these VIEs beyond its contractual obligations. Creditors of consolidated VIEs have no recourse to BNY’s general credit.

Preferred stock

BNY’s outstanding preferred stock declined from 48.826 million shares with a $4.836 billion carrying value at December 31, 2025, to 43.001 million shares with a $4.259 billion carrying value at September 30, 2026—a net decrease of 5.825 million shares and $577 million. All outstanding preferred stock is noncumulative and perpetual, with a $100,000 liquidation preference per share. Carrying values for Series F, H, I, J, K, L, M and N are net of issuance costs.

During 2026, BNY redeemed all 5.825 million Series H shares in June (carrying value $576 million) and all 10 million Series F shares in September (carrying value $990 million). It issued 5 million Series M shares in March (carrying value $494 million) and 5 million Series N shares in July (carrying value $495 million at September 30), partly offsetting the redemptions.

The redemption fees included $6 million realized on the Series H redemption and $10 million on the Series F redemption. Series H and F had no shares outstanding at September 30 following their redemptions.

Series M pays a 5.625% fixed dividend through March 20, 2031, then resets to the five-year Treasury rate plus 2.034%. Series N pays 6.150% through September 20, 2031, then resets to the five-year Treasury rate plus 1.868%. Both are nonconvertible, have no sinking fund, and may be redeemed at BNY’s option on or after their respective 2031 reset dates, subject to Federal Reserve approval. Either may also be redeemed in whole within 90 days after a regulatory capital treatment event.

Other outstanding series have the following dividend terms: Series A pays the greater of three-month CME Term SOFR plus a 0.26161% spread adjustment and 0.565%, or 4.000%. Series I pays 3.750% through December 20, 2026, then resets to the five-year Treasury rate plus 2.630%. Series J pays 6.300% through March 20, 2030, then resets to the five-year Treasury rate plus 2.297%; Series K pays 6.150% through that date, then resets to the five-year Treasury rate plus 2.161%; and Series L pays 5.950% through December 20, 2030, then resets to the five-year Treasury rate plus 2.271%.

Series A is held by BNY subsidiary Mellon Capital IV, whose obligations provide a subordinated, full and unconditional guarantee of payments due on its Normal Preferred Capital Securities.

Other comprehensive income (loss)

BNY’s OCI swung from income to loss in both Q3 and the first nine months of 2026, driven primarily by losses on available-for-sale (AFS) securities.

The AFS loss reflected unrealized losses arising during the period—$962M after tax in Q3 and $1.322B after tax for the nine months—partly offset by after-tax reclassification adjustments of $19M and $75M, respectively. AFS reclassification adjustments are recorded in investment and other revenue; defined-benefit amortization is recorded in other expense.

Accumulated OCI

Accumulated OCI attributable to BNY shareholders was a $4.412B loss at September 30, 2026, compared with a $3.362B loss at September 30, 2025. It worsened by $957M during Q3 2026 and by $1.377B over the first nine months of 2026. Consolidated OCI totals and changes in shareholder-attributable accumulated OCI differ because they use different attribution bases.

The accumulated AFS securities balance was a $522M loss at September 30, 2025. Accumulated OCI also includes $12M of after-tax losses on AFS securities transferred to held-to-maturity, including hedges, compared with $10M at September 30, 2025; these amounts are amortized into earnings over the securities’ remaining premium/discount periods.

Fair-value measurement

Recurring fair-value positions

At September 30, 2026, BNY had no recurring fair-value assets or liabilities classified as Level 3. Before derivative netting, assets were 36% Level 1 and 64% Level 2, compared with 34% and 66% at December 31, 2025. Liabilities were 29% Level 1 and 71% Level 2, versus 39% and 61%, respectively.

Derivative netting reduced reported assets by $8.188B, compared with $5.224B, and reported liabilities by $8.173B, compared with $3.831B.

Credit quality of selected AFS holdings

At September 30, 2026, all $1.486B of non-agency RMBS, $1.798B of non-agency commercial MBS and $8.163B of foreign covered bonds were rated AAA/AA-. Of the $27.07B in non-U.S. government securities, 83% was rated AAA/AA- and 17% A+/A, with none rated BBB or lower. Non-investment-grade Brazilian government securities totaled $93M, down from $112M.

Nonrecurring fair-value measurements

All nonrecurring fair-value assets were Level 2.

Other assets include non-readily marketable equity securities carried at cost with adjustments, and assets received in satisfaction of debt. The disclosed loans’ fair value was unchanged in Q3 2026 and Q4 2025; valuations were based on underlying collateral, with an offset to the allowance for credit losses.

Estimated fair value of financial instruments not carried at fair value

These estimated values were classified as Level 2, except held-to-maturity securities, which included $7.126B in Level 1 and $35.44B in Level 2. Long-term debt’s estimated fair value was below its carrying amount at September 30, 2026; at December 31, 2025, fair value exceeded carrying amount.

BNY elected the fair value option for selected financial assets and liabilities, including consolidated investment management funds and subordinated notes associated with certain equity investments.

Consolidated investment management funds

These balances are included in other assets and other liabilities on BNY’s consolidated balance sheet. Fund assets are valued using quoted prices for identical or similar instruments and other observable inputs, including prices from inactive markets. Changes in fair value are recorded in income (loss) from consolidated investment management funds within investment and other revenue.

Subordinated notes

The notes are included in other assets and valued using observable market inputs; they are classified as Level 2.

Note 14 — Derivative instruments and secured financing

BNY uses derivatives to manage interest-rate, foreign-exchange, equity-price and credit exposures and to make markets for customers under the Volcker Rule. Notional amounts represent transaction volume, not expected credit exposure; BNY reduces risk through offsetting positions, netting and collateral. It recorded no counterparty-default losses in 3Q26.

Derivative portfolio and fair values

The portfolio grew between Dec. 31, 2025 and Sept. 30, 2026, particularly in foreign-exchange contracts. Gross fair values are before master netting; recognized amounts are after netting.

Hedging positions and results

At Sept. 30, 2026, interest-rate swaps hedged $61.1B par value of available-for-sale (AFS) securities ($60.9B notional), a layer of a $2.8B closed portfolio of fixed-rate loans ($1.4B of swaps), loans and securities ($2.5B of swaps, with terms under three years), and $31.5B par value of long-term debt ($31.5B notional). Closed AFS portfolios had $17.0B amortized cost, of which $11.9B was hedged, versus $15.1B and $8.9B at year-end 2025. Closed loan portfolios were $2.8B, with $1.4B hedged, versus $2.9B and $1.4B.

Fair-value hedge relationships largely offset in earnings. Cumulative hedge-accounting basis adjustments are decreases in the carrying amount shown.

BNY expects $17M of net after-tax accumulated-OCI losses to be reclassified to net interest income over the next 12 months. Forecast foreign-currency transactions hedged totaled $770M notional, with a $5M pre-tax loss in accumulated OCI; a further $5M loss is expected to be reclassified into earnings over the next 12 months. Net-investment FX hedges totaled $12.0B notional.

Trading and economic-hedge results

Counterparty exposure and risk controls

OTC derivatives in net-liability positions with credit-contingent features had $1.708B aggregate fair value before cash collateral at Sept. 30, 2026, versus $381M at year-end 2025; collateral posted was $1.995B versus $1.009B. Potential close-out exposure at the Ba1/BB+ rating trigger rose to $1.574B from $714M, excluding posted collateral. Comparable exposure was $47M versus $61M at A3/A-, and $244M versus $252M at Baa2/BBB. A downgrade below investment grade would require an additional $120M collateral posting, versus $76M at year-end 2025. The Bank of New York Mellon enters into the substantial majority of OTC contracts, concentrating this rating-trigger risk at the largest banking subsidiary.

Risk controls include daily independent monitoring, position limits, a one-day 99%-confidence VaR model and stress tests. Management cautions that VaR does not capture extraordinary events; stress scenarios include reduced liquidity, breakdowns in historical correlations and extreme market conditions.

Secured borrowings

Secured borrowings from repurchase agreements and securities lending totaled $245.143B contract value at Sept. 30, 2026, down from $282.192B at Dec. 31, 2025. The decline in repos was driven mainly by lower U.S. Treasury collateral, partly offset by higher agency RMBS; securities lending increased primarily in equity securities.

Securities-lending balances were entirely overnight and continuous at both dates; other maturity balances were repos.

These transactions primarily expose BNY to liquidity risk: declining pledged-collateral values could require additional collateral and reduce assets available for other liquidity needs. BNY also faces credit risk through tri-party collateral agency services and mitigates intraday credit risk by requiring dealers to fully secure intraday credit.

Commitments and off-balance-sheet exposures

BNY’s contractual commitments include lending and letters of credit, as well as substantial securities-lending indemnifications. These notional amounts do not reflect collateral; maximum contractual exposure could equal the full amount if drawn, although BNY expects many commitments to expire undrawn.

At Sept. 30, 2026, $24.0B of lending commitments matured within one year, $23.7B in one to five years, and $670M after five years. Standby-letter-of-credit maturities were $1.0B within one year and $454M in one to five years. The standby letters were 84% investment grade, versus 78% at year-end 2025; their non-investment-grade share fell to 16% from 22%. They were collateralized by $193M of cash and securities, compared with $212M.

BNY generally indemnifies securities-lending clients against borrower default and requires collateral of at least 102% of the fair value of securities borrowed, monitored daily. The indemnifications were secured by $749B of collateral, up from $706B. The reported indemnification amounts exclude CIBC Mellon client securities for which BNY acts as agent: those borrowings were $72B versus $74B, supported by $77B versus $78B of collateral. Cash collateral invested in indemnified repurchase agreements was $78B, compared with $65B. Exposure is concentrated primarily in broker-dealers; collateral and counterparty controls mitigate, but do not eliminate, borrower-default and market risks.

Credit concentrations at Sept. 30, 2026

Unsettled reverse repurchase agreements were $56.1B at Sept. 30, 2026, down from $71.9B at Dec. 31, 2025; there were no unsettled repurchase agreements at either date. BNY also guarantees sponsored-member clients’ obligations in the FICC Treasury and agency-securities repo program, seeking to mitigate exposure through security interests in client collateral and transaction rights. Clearing and settlement exchange guarantees and potential loss-allocation assessments cannot be quantified before a loss occurs; BNY recorded no material liabilities for these arrangements.

Legal and regulatory matters

BNY stated that, based on current knowledge, legal and regulatory matters are not expected to materially adversely affect its consolidated financial position or liquidity, although they could materially affect results in an individual period. For matters with estimable reasonably possible losses, aggregate exposure is up to $630M in excess of accrued liabilities, if any; BNY cannot estimate a range for certain other matters. It records accruals when a loss is probable and reasonably estimable. No material liabilities were recorded for general indemnifications, and material payments under those arrangements are considered remote.

Postalis and other Brazilian matters. Postalis-related litigation involves BNY’s Brazilian subsidiary DTVM and historical investment funds. A separate 2025 TCU decision found DTVM, Ativos and former Postalis directors jointly and severally liable for approximately $185M; DTVM and Ativos appealed administratively. In another matter, a TCU decision against DTVM involved approximately $50M in joint-and-several liability plus a $2M fine. After an injunction had suspended the decision, DTVM’s annulment action was dismissed in June 2026 and DTVM appealed. A separate arbitration found DTVM and Ativos partially liable in September 2025; they deposited $33.5M in court while pursuing a further appeal. Other claims include a roughly $3M judgment affirmed on appeal in March 2026, with a further appeal filed, and a separate judgment reduced from roughly $3M to roughly $2M, paid and closed in March 2026. In another case, an approximately $20M joint-and-several judgment against DTVM and Alocação de Patrimônio was reversed in April 2024; Postalis’ appeal was denied in October 2024, and a further appeal was filed. Other Postalis claims remain pending.

Other proceedings and investigations. Mortgage-securitization trustee-duty actions remain pending in New York. Stanford-related matters include a remaining Pershing lawsuit and a BNY putative class action returned to trial court after dismissal was reversed; plaintiffs’ class-certification motion was denied in August 2025. BNY continues to cooperate with the SEC’s investigation into Pershing LLC’s compliance with SEC Rule 15c3-3 and other requirements.

German authorities investigated historical cum/ex trading by third-party funds involving entities BNY acquired. BNY received secondary-liability notices totaling approximately $150M at then-prevailing exchange rates, related to pre-acquisition activity; substantially all notices have been resolved, and BNY pursued seller indemnification as needed. BNY is also cooperating with information requests.

BNY is defending Russian lawsuits seeking recovery of assets held by BNY but blocked by international sanctions. In a separate case, a Russian court entered a Sept. 11, 2025 judgment against BNY and co-defendants concerning $251M allegedly improperly seized by Ukraine from BNY accounts; BNY appealed. In a related matter, a Russian bailiff sought collection from BNY of part of a $513M judgment obtained by PJSC Sberbank against its former subsidiary and Ukrainian agencies; the amount sought from BNY is unspecified. The filing does not provide an aggregate reserve, expected-loss estimate, or determination of amounts ultimately payable for these contested matters.

Business segments

BNY reports Securities Services, Market and Wealth Services, and Investment and Wealth Management, plus Other. Segment results are based on internal management accounting and reflect management’s allocation of net interest income, credit-loss provisions, incentives, support costs, recurring FDIC expense, and other items. The CEO/CODM evaluates segments primarily on fee and other revenue, total revenue, pretax income, and pretax margin. Investment securities portfolio management is a shared service reported in Other, where related realized gains and losses are generally recorded.

Q3 segment results

Q3 consolidated revenue rose 12.0%, reflecting growth in both fee and other revenue and net interest income. Noninterest expense increased to $3.489B from $3.236B; the provision for credit losses was $1M, compared with a $7M provision benefit in Q3 2025.

Nine-month context

For the nine months ended 2026, consolidated revenue was $16.757B versus $14.875B, and pretax income was $6.443B versus $5.187B. Fee and other revenue was $12.518B versus $11.277B, while net interest income was $4.239B versus $3.598B. Noninterest expense rose to $10.328B from $9.694B; the provision for credit losses was a benefit of $14M, compared with a $6M benefit in 2025.

Nine-month pretax-income growth exceeded the Q3 year-over-year rate by at least three percentage points for Securities Services, Investment and Wealth Management, and consolidated results:

These growth rates compare with Q3 growth of 24.3%, 11.4%, and 19.0%, respectively. For additional nine-month context, Market and Wealth Services revenue was $5.846B versus $5.231B and pretax income was $3.005B versus $2.531B; Investment and Wealth Management revenue was $2.545B versus $2.404B; Other revenue was $40M versus $43M and its pretax loss was $(199)M versus $(131)M.

In Q1 2026, Managed Accounts Solutions clients were realigned from Securities Services to Market and Wealth Services; 2025 comparative segment results were revised for comparability. There were no Q3 reclassifications or organizational changes. Average consolidated assets were $464.049B in Q3 2026 versus $437.491B, and $463.590B for the first nine months versus $430.727B.

Supplemental noncash items for the first nine months included investment securities purchased but not settled of $1.001B, down from $2.462B, and securities sold but not settled of $115M versus none. No available-for-sale securities were transferred to held-to-maturity in 2026, compared with $759M in 2025.

Controls and Procedures

As of the end of Q3 2026, BNY’s CEO and CFO concluded that its disclosure controls and procedures were effective. During the quarter, no changes to internal control over financial reporting materially affected, or were reasonably likely to materially affect, those controls.

The filing cautions that controls provide reasonable—not absolute—assurance because of inherent limitations, including human error and the possibility that controls may be circumvented or overridden.

Forward-Looking Statements and Principal Risks

BNY’s forward-looking statements cover expectations for future performance, revenue and expenses, net interest income and interest-rate sensitivity, liquidity and capital, dividends and repurchases, efficiency savings, technology investment and AI, acquisitions and divestitures, and its transition to a platforms operating model. These expectations are subject to uncertainty; actual results may differ materially.

Financial and business risks

• Revenue and markets: A substantial majority of BNY’s revenue is fee-based, exposing results to weaker market activity, investment underperformance, and shifts in savings and investment preferences. Interest-rate changes may affect profitability and capital. Volatile or illiquid markets could also produce realized or unrealized securities losses.
• Credit, liquidity and capital: Significant-client or counterparty failures—particularly involving major financial institutions or sovereign entities—could cause losses. Credit-loss allowances and reserves for lending commitments may prove inadequate. BNY also faces liquidity and capital-adequacy risks; ratings downgrades could increase funding costs or constrain capital returns.
• Parent-company funding: The holding company relies on subsidiary dividends and intercompany holding-company (IHC) credit extensions to meet obligations and fund shareholder dividends and repurchases.

Operational, technology and strategic risks

Processing errors, service disruptions, third-party failures, control weaknesses and cyberattacks could impair operations. BNY highlights AI-enabled threats and possible quantum-computing risks to encryption. Conversely, failure to adopt AI—including agents and digital employees—develop required capabilities, or realize expected benefits could undermine competitiveness and long-term performance. Limitations in risk models or ineffective risk management could result in unexpected losses.

BNY may also face challenges from strategic transactions and new-product execution, competition, reputational harm, and retaining talent. It may not achieve the anticipated benefits of its platforms operating model or planned efficiency and technology initiatives.

External, legal and regulatory risks

Extensive and changing regulation, enforcement actions and litigation could affect BNY’s business and results. Geopolitical events, war, terrorism, extreme weather, pandemics, differing sustainability expectations, tax-law changes or challenges, and accounting-standard changes may also affect operations or reported results. Legal-proceedings disclosures are incorporated by reference to Note 15.

Share repurchases and trading arrangements

In Q3 2026, BNY repurchased 5.839 million common shares at an average price of $160.51 per share; all were purchased under its publicly announced repurchase program. The quarter’s total included 87,000 shares repurchased from employees for $14 million, primarily to cover taxes on restricted-stock vesting. The average price for open-market repurchases was $160.53 per share.

The prior $6.0 billion authorization, announced in April 2024, was exhausted in Q2 2026. BNY announced a new $10.0 billion authorization in April 2026; $8.774 billion remained available at September 30, 2026. Repurchases may be made through open-market or privately negotiated purchases, Rule 10b5-1 plans, derivatives, accelerated repurchases or other structured transactions. Their timing and amount depend on market conditions and share price, capital position, liquidity and performance, alternative uses of capital, and legal or regulatory constraints. Outstanding preferred stock has dividend-payment priority over common stock.

BNY Investments and Wealth Global Head Jose Minaya adopted a Rule 10b5-1 trading arrangement on May 20, 2026. Sales began August 27, 2026, may cover up to 42,240 shares, and are scheduled to expire August 27, 2027, subject to earlier termination or completion.

Exhibit index and filing certifications

BNY’s charter and bylaws are incorporated by reference. The exhibit index includes preferred-stock designation documents for Series A, I, and J through O. Series J and K were designated in March 2025, Series L in September 2025, and Series M, N, and O in March, July, and October 2026, respectively. The designations indicate additional preferred-stock series; where stated, the shares are noncumulative and perpetual.

As of September 30, 2026, no instrument defining long-term debt of BNY or its subsidiaries represented more than 10% of BNY’s total assets. BNY undertakes to provide copies of such instruments to the SEC upon request. The exhibits also identify the subsidiary issuer of guaranteed securities and include the CEO and CFO certifications required under Sarbanes-Oxley Sections 302 and 906, together with Inline XBRL materials.

The Form 10-Q was signed on October 30, 2026, by Corporate Controller Kurtis R. Kurimsky, as a duly authorized officer and the principal accounting officer.