Boost in Fee Income and NII Expected to Support BK’s Q4 Profit Growth

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The Bank of New York Mellon Corporation (BK) is set to report its fourth-quarter and 2025 earnings results on January 13, before the market opens. The consensus estimate for fourth-quarter earnings is $1.97 per share, reflecting a 14.5% year-over-year increase, while quarterly revenues are anticipated to reach $5.12 billion, indicating a 5.6% growth from the previous year. Additionally, the consensus estimate for full-year sales stands at $20 billion, a 7.4% year-over-year increase.

Key financial metrics include a projected rise in net interest income to $1.27 billion, a 6.5% increase compared to the prior year, and total investment services fees estimated at $2.61 billion, a 7.1% growth. However, notable challenges include elevated expenses due to restructuring and inflationary pressures, with projected fourth-quarter non-interest expenses around $3.34 billion.

Historically, BNY has exceeded earnings estimates, boasting an average beat of 9.1% over the last four quarters. The earnings ESP for BNY currently stands at +1.25%, and the company maintains a Zacks Rank of #2 (Buy).

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