Assets under custody and/or administration (AUC/A) increased 13% year-over-year to $55.8 trillion, and assets under management (AUM) grew 3% year-over-year to $2.1 trillion as of June 30, 2025, primarily reflecting client inflows and higher market values.

Asset Servicing, Issuer Services, Treasury Services, and Clearance and Collateral Management all reported robust year-over-year revenue increases of 11%, 9%, 15%, and 15% respectively in Q2 2025, driven by higher client activity, net new business, and market values.

The sale of BNY Trust Company of Canada in March 2025 generated a $40 million pre-tax gain, streamlining operations. Concurrently, the Digital Asset Custody platform continues to develop, though its impact on financial results remains de minimis.

Full-time employees decreased by 4% year-over-year to 49,900, and noninterest expense saw a sequential decrease of 1% in Q2 2025, partially offset by efficiency savings despite higher investments and employee merit increases.

The Board approved a 13% increase in the quarterly cash dividend to $0.53 per share, and the company returned $1.2 billion to common shareholders in Q2 2025, including $895 million in share repurchases, demonstrating strong financial health and management confidence.

The provision for credit losses was a benefit of $17 million in Q2 2025, primarily due to property-specific reserve releases related to commercial real estate exposure, indicating effective management of credit risk in a dynamic economic environment.

While current credit loss provision is a benefit, the allowance for credit losses remains sensitive to macroeconomic forecasts. A downside scenario, including sharply lower commercial real estate prices, could necessitate an additional $108 million in allowance for credit losses.

The company maintains exposure to countries with higher risk profiles like Brazil ($1.4 billion) and Russia ($1.0 billion), with specific operational cessation in Russia due to the war in Ukraine. Additionally, ongoing legal proceedings in Brazil and Germany pose potential financial impacts.

New proposed changes to the Enhanced Supplementary Leverage Ratio (eSLR), LTD, and TLAC requirements by U.S. regulators are currently being assessed. While the preliminary SCB requirement remains stable, these broader changes could affect capital levels and operational flexibility.

BNY Mellon remains a leading global investment services provider, overseeing $40.1 trillion in AUC/A for Securities Services and serving as a primary provider of U.S. government securities clearance and global collateral services ($7.1 trillion serviced globally), underscoring its significant scale and entrenched market position.

Pershing's net new assets experienced a $(10) billion outflow in Q2 2025, primarily due to the deconversion of a client acquired by a self-clearing competitor, highlighting ongoing competitive challenges in certain segments.

Market and regulatory trends are shifting investable assets towards lower-fee asset management products, leading to reduced margins for clients. This dynamic necessitates continuous adaptation to maintain profitability in a competitive landscape.

Total noninterest expense increased 4% year-over-year to $3,206 million in Q2 2025, driven by higher investments and employee merit increases. However, management noted that efficiency savings partially mitigated these increases, indicating ongoing cost management efforts.

The company's pre-tax operating margin improved to 37% in Q2 2025 from 33% in Q2 2024, demonstrating better operational leverage and efficiency in converting revenue into pre-tax income.

The total number of full-time employees decreased by 4% year-over-year to 49,900 at period end, and 2% sequentially. This reduction, alongside efficiency savings, contributed to the sequential decrease in staff expense.

Software and equipment expense increased 11% year-over-year to $527 million in Q2 2025 and 9% year-to-date to $1,040 million, indicating a continued commitment to enhancing technological infrastructure and capabilities.

BNY Mellon continues to develop its Digital Asset Custody platform and Digital Assets Funds Services to meet evolving client needs, positioning the company for future growth in the digital asset space, although current financial impact is minimal.

Management is pursuing a transition to a platforms operating model, a strategic initiative aimed at improving efficiency and service delivery. While this presents opportunities, the company acknowledges the risk of not fully realizing expected benefits.

BNY Mellon returned $1.2 billion to common shareholders in Q2 2025, including $895 million in common share repurchases. Year-to-date, $1.6 billion was used to repurchase 19.1 million common shares, reflecting strong capital generation and management's confidence.

The Board of Directors approved a 13% increase in the quarterly cash dividend on common stock, from $0.47 to $0.53 per share, effective August 7, 2025. This demonstrates a commitment to returning value to shareholders and confidence in future earnings.

Total BNY shareholders’ equity increased to $44.0 billion at June 30, 2025, from $41.3 billion at December 31, 2024. This was partially driven by the issuance of Series J and Series K Noncumulative Perpetual Preferred Stock in March 2025, enhancing the company's capital structure.

The company continues to invest in affordable housing projects to meet Community Reinvestment Act requirements and in renewable energy projects to generate expected after-tax returns, totaling $2.7 billion in tax credit investments at June 30, 2025.

The EU Amending Directive delayed application dates for CSRD for 'second wave' companies to 2028 and CSDDD requirements to July 2028. This provides BNY Mellon's in-scope EU subsidiaries additional time to assess and prepare for these sustainability reporting and due diligence obligations.

Robin Vince, Chief Executive Officer, was unanimously elected by the Board of Directors to the additional position of Chairman, effective September 1, 2025. This move consolidates leadership and oversight, which can be viewed as a governance enhancement.

Net interest income increased 17% year-over-year in Q2 2025, primarily reflecting the continued reinvestment of maturing investment securities at higher yields, indicating the company is benefiting from a higher interest rate environment.

The baseline macroeconomic forecast used for credit loss allowance assumes slowing GDP growth through the end of 2025 before accelerating next year, with slightly increasing unemployment and stable commercial real estate prices, suggesting a cautious but ultimately positive outlook.

The SEC formally withdrew several proposed rules, including those related to safeguarding advisory client assets and cybersecurity risk management. This reduction in immediate regulatory changes could provide operational flexibility and reduce compliance costs for BNY Mellon.