BNY

Bank of New York Mellon reported strong Q3 2026 results with 24% year-over-year EPS growth to $2.34 and $63.4 trillion in assets under custody. The bank raised its operating leverage target to 500 basis points, driven by revenue growth outpacing expense increases. Key growth drivers include AI deployment through its Eliza platform for process automation and expansion into blockchain-based digital transfer agency services for tokenized assets.

Bank of New York Mellon (BNY) raised its 2026 operating leverage outlook to nearly 500 basis points with projected revenue growth of 12-13%, driven by strong Securities Services growth (up 15%), net interest income growth (up 15%), and deployment of over 400 AI solutions. The company beat earnings estimates with $5.68B in revenue and $2.37 EPS, while expanding digital asset capabilities and maintaining disciplined capital allocation.

Several companies reported third-quarter 2026 earnings with mixed results. Ericsson beat earnings expectations and saw shares jump 11.2%, while Marsh & McLennan exceeded revenue estimates with a 4.6% gain.

Bank of New York Mellon also beat earnings forecasts, gaining 3.2%. However, Rocket Lab postponed its Neutron rocket's maiden flight to 2027, causing shares to fall 6.6%.

Bank of New York Mellon (BNY) reported Q3 2026 adjusted EPS of $2.37, beating consensus estimates of $2.26, with a 24.1% year-over-year increase. Total revenues rose 11.7% to $5.68B, driven by higher fee revenues and net interest income.

However, the company faces headwinds from rising expenses, deposit margin compression, and net outflows in assets under management. Capital ratios declined compared to the prior year.

BNY Mellon reported Q3 2026 earnings of $2.37 per share, beating consensus estimates of $2.26, with revenues of $5.68 billion exceeding expectations. The stock has gained 18.6% year-to-date, outperforming the S&P 500's 12.8% gain.

However, BNY holds a Zacks Rank #3 (Hold) rating due to mixed estimate revisions, suggesting near-term performance in line with the market. The banking industry remains in the bottom 31% of Zacks-ranked industries.

Bank of New York Mellon is expected to report Q3 2026 earnings on October 15 with projected EPS growth of 18.3% and revenue growth of 9.5% year-over-year. Fee revenues are anticipated to rise 8.2% driven by asset servicing, investment management, and forex gains, while net interest income is projected to grow 12.4%.

However, elevated expenses from restructuring, technology upgrades, and inflation may offset some gains. The company has a positive Earnings ESP of +0.18% and Zacks Rank #3, suggesting a high probability of beating consensus estimates.

BNY Mellon (BNY) is highlighted as a stock with strong potential to maintain its earnings-beat streak. The company has a positive Earnings ESP of +0.18% combined with a Zacks Rank #3 (Hold), suggesting a high probability of beating consensus estimates in its upcoming October 15, 2026 earnings report. BNY has beaten earnings estimates in its last two quarters with an average surprise of 13.90%.

BNY Mellon and State Street Corporation are both positioned as likely earnings beat candidates for Q3 2026. BNY is expected to report EPS of $2.27 (up 18.9% YoY) with an Earnings ESP of +0.33% and Zacks Rank #3, while State Street is projected to post EPS of $3.64 (up 30.9% YoY) with an Earnings ESP of +0.58% and Zacks Rank #3. Both companies have strong historical track records of beating consensus estimates.

The Bank of New York Mellon's Jan. 15, 2026 $47.5 Put option is showing unusually high implied volatility, suggesting traders expect significant price movement. However, the company holds a Zacks Rank #3 (Hold) rating with modest analyst estimate increases, indicating options traders may be positioning to sell premium and profit from volatility decay rather than predicting a major directional move.

SEI Investments is expanding into Singapore to establish a direct foothold in Asia-Pacific's asset-management hub. The company reported 14% year-over-year revenue growth in H1 2026, driven by alternatives, platform conversions, and client activity. While the Singapore expansion offers growth potential, success will depend on steady client wins in a competitive market dominated by larger players like State Street and BNY Mellon.

Interactive Brokers launched cryptocurrency staking for eligible clients through Ethereum, expanding its digital-asset capabilities. The company offers competitive crypto trading fees (0.12%-0.18%) and is integrating AI tools to enhance market research and trading. While the initiative could attract clients and boost revenue, challenges include rising costs, regulatory complexity, and uncertain financial contribution from staking adoption.

State Street is expected to report Q3 2026 earnings on October 14 with a projected 31.3% earnings jump and 14% revenue growth year-over-year. NII is anticipated to rise 19.8% while fee revenues are expected to climb 12.9%, driven by higher asset balances and favorable market performance.

However, increased technology and expansion costs may offset some gains. The company's Earnings ESP of 0.00% and Zacks Rank #3 suggest uncertain earnings beat prospects.

Rising bond yields are severely impacting bank stocks, with the KBW Nasdaq Bank index down 9.7% over the past month. Soaring yields squeeze bank profitability through reduced net interest margins, increased deposit competition from Treasury bills, depressed loan demand, and declining bond portfolio values.

Major banks including Bank of America, Goldman Sachs, and Morgan Stanley have experienced double-digit percentage declines. The author recommends caution on bank stocks until yields stabilize.

Wells Fargo is in discussions with Payward (parent company of Kraken) to obtain liquidity for cryptocurrency trading, aiming to expand its digital-asset services without building its own exchange. The bank already offers Bitcoin ETFs and plans to launch tokenized deposits for corporate clients, positioning itself to better serve crypto-market participants and modernize its payments infrastructure.

Truist Financial (TFC) is expected to report Q3 2026 earnings of $1.17 per share, representing 12.5% year-over-year growth, with revenues projected at $5.31 billion. The company has a positive Earnings ESP of +2.67% combined with a Zacks Rank #3, suggesting a likely earnings beat. TFC has beaten consensus estimates in all four trailing quarters.

Citigroup has expanded its partnership with Coinbase to enable institutional clients to accept stablecoin-based payments and settle in fiat currency. The collaboration integrates Coinbase's digital-asset infrastructure with Citigroup's virtual accounts, payment, and settlement capabilities through services like Spring by Citi. This move positions Citigroup to capture growth in the stablecoin ecosystem while leveraging its existing relationships with major e-commerce and fintech companies.