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Loan Growth & Rise in Fee Income Likely to Aid BK's Q1 Earnings
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Key Takeaways
BK is set to report Q1 results on April 16, with earnings and revenues expected to rise y/y.
Fee income growth and stronger NII, supported by loan growth and stable deposit costs, may aid results.
Estimates point to 22.2% EPS growth and a 7.5% revenue increase despite higher expenses from restructuring.
The Bank of New York Mellon Corporation (BK - Free Report) is scheduled to report first-quarter 2026 results on April 16, before market open. The company’s quarterly revenues and earnings are expected to have increased on a year-over-year basis.
In the last reported quarter, BK’s earnings surpassed the Zacks Consensus Estimate. Results were primarily aided by a rise in fee revenues and net interest income (NII). Growth in assets under custody and/or administration, and assets under management (AUM) balances supported results. However, marginally higher expenses were a drag.
BNY has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 8%.
The Bank of New York Mellon Corporation Price and EPS Surprise
The consensus estimate for the company’s first-quarter earnings is pegged at $1.93 per share, which has been revised marginally higher over the past seven days. The estimate figure indicates a rise of 22.2% from the year-ago quarter’s reported number.
The consensus estimate for quarterly sales is pegged at $5.15 billion, implying 7.5% year-over-year growth.
BNY’s Other Key Estimates for Q1
Fee Revenues: The Zacks Consensus Estimate for total investment services fees (constituting more than 50% of the company’s total revenues) is pegged at $2.50 billion, suggesting a rise of 3.6% from the year-ago quarter’s actual.
The consensus estimate for investment management and performance fees of $785 million indicates a year-over-year rise of 6.2%. The consensus estimate for foreign exchange revenues stands at $195 million, suggesting a 25% increase from the year-ago quarter’s actual.
However, the consensus mark for financing-related fees stands at $55 million, which indicates an 8.3% year-over-year decline.
The consensus estimate for distribution and servicing fees is pegged at $36.18 million, implying a 2.2% year-over-year fall.
The consensus estimate for total fees and other revenues is $3.85 billion, indicating a rise of 6% from the year-ago quarter’s actual.
NII: In the first quarter, the Federal Reserve kept interest rates unchanged. This, along with a solid lending scenario (per the Fed’s latest data, overall loan growth was robust) and stabilizing funding/deposit costs, is expected to have offered the much-needed support to BNY’s NII growth.
The consensus mark for NII is pegged at $1.32 billion, indicating a 13.7% year-over-year rise.
Expenses: Because of higher restructuring charges and buyouts, BNY’s expenses have been elevated over the past few years. In the first quarter, overall costs are expected to have increased, driven by inflationary pressure, technology upgrades and a multi-year transformation plan.
What the Zacks Model Unveils for BK
According to our quantitative model, the chances of BNY beating the Zacks Consensus Estimate this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Here are a couple of other bank stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this time:
The Earnings ESP for KeyCorp (KEY - Free Report) is +0.03% and it carries a Zacks Rank #3 at present. The company is slated to report first-quarter 2026 results on April 16.
Over the past seven days, the Zacks Consensus Estimate for KeyCorp’s quarterly earnings has been unchanged at 41 cents per share.
State Street (STT - Free Report) is scheduled to announce first-quarter 2026 results on April 17. The company has a Zacks Rank #3 and an Earnings ESP of +2.61% at present.
Quarterly earnings estimates for State Street have been revised upward to $2.54 over the past week.
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Loan Growth & Rise in Fee Income Likely to Aid BK's Q1 Earnings
Key Takeaways
The Bank of New York Mellon Corporation (BK - Free Report) is scheduled to report first-quarter 2026 results on April 16, before market open. The company’s quarterly revenues and earnings are expected to have increased on a year-over-year basis.
In the last reported quarter, BK’s earnings surpassed the Zacks Consensus Estimate. Results were primarily aided by a rise in fee revenues and net interest income (NII). Growth in assets under custody and/or administration, and assets under management (AUM) balances supported results. However, marginally higher expenses were a drag.
BNY has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 8%.
The Bank of New York Mellon Corporation Price and EPS Surprise
The Bank of New York Mellon Corporation price-eps-surprise | The Bank of New York Mellon Corporation Quote
The consensus estimate for the company’s first-quarter earnings is pegged at $1.93 per share, which has been revised marginally higher over the past seven days. The estimate figure indicates a rise of 22.2% from the year-ago quarter’s reported number.
The consensus estimate for quarterly sales is pegged at $5.15 billion, implying 7.5% year-over-year growth.
BNY’s Other Key Estimates for Q1
Fee Revenues: The Zacks Consensus Estimate for total investment services fees (constituting more than 50% of the company’s total revenues) is pegged at $2.50 billion, suggesting a rise of 3.6% from the year-ago quarter’s actual.
The consensus estimate for investment management and performance fees of $785 million indicates a year-over-year rise of 6.2%. The consensus estimate for foreign exchange revenues stands at $195 million, suggesting a 25% increase from the year-ago quarter’s actual.
However, the consensus mark for financing-related fees stands at $55 million, which indicates an 8.3% year-over-year decline.
The consensus estimate for distribution and servicing fees is pegged at $36.18 million, implying a 2.2% year-over-year fall.
The consensus estimate for total fees and other revenues is $3.85 billion, indicating a rise of 6% from the year-ago quarter’s actual.
NII: In the first quarter, the Federal Reserve kept interest rates unchanged. This, along with a solid lending scenario (per the Fed’s latest data, overall loan growth was robust) and stabilizing funding/deposit costs, is expected to have offered the much-needed support to BNY’s NII growth.
The consensus mark for NII is pegged at $1.32 billion, indicating a 13.7% year-over-year rise.
Expenses: Because of higher restructuring charges and buyouts, BNY’s expenses have been elevated over the past few years. In the first quarter, overall costs are expected to have increased, driven by inflationary pressure, technology upgrades and a multi-year transformation plan.
What the Zacks Model Unveils for BK
According to our quantitative model, the chances of BNY beating the Zacks Consensus Estimate this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for BNY is +0.50%.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Bank Stocks That Warrant a Look
Here are a couple of other bank stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this time:
The Earnings ESP for KeyCorp (KEY - Free Report) is +0.03% and it carries a Zacks Rank #3 at present. The company is slated to report first-quarter 2026 results on April 16.
Over the past seven days, the Zacks Consensus Estimate for KeyCorp’s quarterly earnings has been unchanged at 41 cents per share.
State Street (STT - Free Report) is scheduled to announce first-quarter 2026 results on April 17. The company has a Zacks Rank #3 and an Earnings ESP of +2.61% at present.
Quarterly earnings estimates for State Street have been revised upward to $2.54 over the past week.