Bank of New York Mellon

NYSE: BNY · USD

Bank of New York Mellon (BNY) Economic Moat Analysis—

Competitive advantages, dated evidence and erosion risks.

Uncertain economic moat

BNY demonstrates repeat client demand, substantial servicing activity and strong earnings execution. The passages do not establish durable switching barriers, network effects or superior costs relative to competitors. Reported efficiency gains support a possible scale advantage, but investment targets and AI deployment do not prove durable competitive protection. Deposit margin compression limits pricing power despite improving aggregate profitability. Capital and liquidity support a mixed assessment as regulatory capital ratios decline. Insufficient structural evidence, rather than demonstrated competitive weakness, drives the uncertain verdict.

Changes since the previous analysis

Retained the uncertain verdict after re-examining current passages; operating scale and execution still do not establish a durable structural moat.
Added explicit moat criterion assessments without treating uncertainty as an automatic gate on observed operating resilience.
Retained the supported pricing and management grades, but removed reliance on previously described replication barriers, investment-management outflows, written consent and proxy access that are not established by the current excerpts.
Retained mixed financial-risk and investment-discipline grades with narrower rationales: current excerpts do not establish the previous analysis's charge-off, nonperforming-asset or capitalized-software purchase claims.

Evidence limitations

The catalog does not establish named competitor coverage. Names appearing as underwriters, partners, vendors or former employers are not evidence of competitive positioning.
Sales, efficiency and AI disclosures are issuer reports. Operating results support numerical assessments, but do not establish relative unit costs, network effects, migration barriers or exceptional durability.
Business-disclaimer dates are retrieval dates, not publication dates. Pricing discretion applies to the specified interest rates and surcharge schedules; it cannot be generalized to every group contract.
September 2026 regulatory ratios are preliminary. June requirement-table footnotes are incomplete, and no comprehensive current funding-concentration, uninsured-deposit, duration or interest-rate sensitivity evidence is supplied.
Financial assessments use sources filed within 550 days of 2026-10-23. Consolidated ratios are distinguished from the separately named bank subsidiary's ratios.
The potential scale and relationship advantages would be undermined by sustained existing-client activity losses, recurring competitive fee concessions, or costs persistently outgrowing comparable servicing volumes. Evidence of costly migrations, durable renewal outcomes or superior comparable unit costs would be needed to establish the moat hypothesis.
Platform investment and savings targets remain prospective. Production deployment establishes implementation, without separately demonstrating project returns or lasting competitive differentiation.

Financial indicators to test against the thesis

Calculated from annual filings. Missing data remains unavailable. Detailed financial charts remain in the other topics.

Financial indicators to test against the thesis
Period	Gross margin	Operating margin	ROIC	FCF margin
2021	—	—	—	10.2%
2022	—	—	—	83.8%
2023	—	—	—	26.8%
2024	—	—	—	-4.2%
2025	—	—	—	25.8%

Pricing power50

Pricing outcomes
Deposit margin compression is an observed adverse pricing outcome, supporting a weak assessment. Securities reinvestment yields and balance-sheet growth explain higher net interest income. Asset Servicing fee growth combines activity, net new business and market values; it does not isolate favorable fee repricing.
Customer demand
Repeat demand is assessed indirectly from fourteen consecutive quarters of sales growth, larger client solutions and higher client activity. These support engagement, but sales growth includes new business and cannot establish cohort retention, renewal success or resistance to competitor switching. No retention rate is inferred.
Margin resilience
Year-to-date revenue increased 13% against 7% expense growth, while pre-tax operating margin improved to 38.5% from 35.0%. This demonstrates strong aggregate resilience. Sequential margin contraction and favorable securities reinvestment yields limit attribution to customer pricing power or a structural moat.
Pricing freedom
BNY can change specified interest rates without notice and revise surcharge schedules. Definitive agreements govern service terms, while funds may reduce shareholder-servicing payments. These provisions establish bounded, mixed discretion, without demonstrating unilateral repricing rights across all custody relationships or the consolidated group.

Management63

Capital discipline
Growing earnings, net share reduction and reported efficiency savings support discipline. The 86% year-to-date payout nevertheless accompanies declining regulatory ratios; distributions and accumulated-other-comprehensive-income deterioration reduced quarterly CET1. Investment spending is reported, but project-level returns are not established.
Incentive alignment
Actual NEO ownership compliance, CEO retention requirements and clawback provisions support alignment. Compliance includes half of restricted stock and unvested RSUs. The approved $25 million RSU and 869,263-option award has fifth- and sixth-anniversary service vesting; its size and employment condition temper the assessment.
Execution
Reported revenue and earnings growth, consecutive sales growth, completed platform activation and approximately 220 enterprise AI solutions in production support strong execution. Attribution of aggregate gains to particular initiatives remains indirect. Annual investment and savings targets are not treated as achieved outcomes.
Governance
Annual majority-vote elections, independent lead-director powers and independent Risk and Audit Committees provide concrete oversight safeguards. The chairman and CEO roles remain combined. Disclosed structures support a strong assessment, but do not independently establish exceptional oversight effectiveness or consistently superior governance outcomes.

Sources and methodology

Current publication · Updated 22/10/2026 · Version 12

AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.

Policy quality-scores-3: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 5/6 · 29/10/2026

Moat—

Insufficient evidence for every rubric criterion; no category score is inferred.

structural advantage · — · Reported sales growth, platform activation and efficiency savings establish commercial progress. They do not establish superior unit costs against competitors, protected market access or network effects. Neither increased profitability nor management's competitive-position language supplies the missing structural comparison.

durability · — · Fourteen consecutive quarters of reported year-over-year sales growth provide meaningful operating history. The catalog supplies no durable exclusivity, migration barriers or demonstrated persistence of a relative advantage. Completed platform activation cannot establish that its expected benefits will endure.

customer dependency · — · Account administration, transaction processing and shareholder support demonstrate ongoing operational involvement. Larger client solutions suggest broader relationships. The passages do not establish replacement difficulty, migration expense or consequences of switching providers, so repeat demand cannot be converted into a customer-dependency grade.

erosion resilience · 2/4 · Reported sales growth, net new business and efficiency savings show commercial resilience while deposit margins compress. This is mixed operating evidence, not proof of structural protection: market values and activity also support growth, and competition and unrealized platform benefits remain disclosed risks.

Pricing power50

Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.

realized pricing · 1/4 · Deposit margin compression is an observed adverse pricing outcome, supporting a weak assessment. Securities reinvestment yields and balance-sheet growth explain higher net interest income. Asset Servicing fee growth combines activity, net new business and market values; it does not isolate favorable fee repricing.

retention · 2/4 · Repeat demand is assessed indirectly from fourteen consecutive quarters of sales growth, larger client solutions and higher client activity. These support engagement, but sales growth includes new business and cannot establish cohort retention, renewal success or resistance to competitor switching. No retention rate is inferred.

margin resilience · 3/4 · Year-to-date revenue increased 13% against 7% expense growth, while pre-tax operating margin improved to 38.5% from 35.0%. This demonstrates strong aggregate resilience. Sequential margin contraction and favorable securities reinvestment yields limit attribution to customer pricing power or a structural moat.

contractual freedom · 2/4 · BNY can change specified interest rates without notice and revise surcharge schedules. Definitive agreements govern service terms, while funds may reduce shareholder-servicing payments. These provisions establish bounded, mixed discretion, without demonstrating unilateral repricing rights across all custody relationships or the consolidated group.

Predictability98

Financial-sector stability over 5 consecutive reported annual periods: equal weights for nondeclining revenue frequency, revenue-growth volatility (5–40pp), positive consolidated earnings frequency, and net-income/revenue margin volatility (3–20pp). Uses reported accounting scope; not industrial FCF or a growth forecast.

Nondeclining revenue years (%): 100.00
Revenue growth volatility (pp): 1.91
positiveEarningsShare: 100.00
netMarginStdDev: 4.23
observedAnnualPeriods: 5.00

Source 1 Source 2 Source 3

Financial strength56

Qualitative bank assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy financial-industry-1; not an industrial ratio score or credit rating.

capital adequacy · 2/4 · June consolidated Standardized CET1 was 11.0% against the table's stated 8.5% requirement. Preliminary September effective CET1 declined to 10.9%, and Tier 1 leverage to 5.7%. Disclosed coverage supports adequacy, while declining ratios and incomplete requirement footnotes constrain assessment of buffer strength.

liquidity funding · 2/4 · Preliminary September average LCR of 111% and NSFR of 129%, plus June adjusted HQLA of $186 billion, support liquidity. Average deposits grew 4% year over year but fell 1% sequentially. Funding composition is disclosed partly; concentration, uninsured balances and stress stability remain unestablished.

asset liability risk · 2/4 · Low recent credit provisions and year-to-date reserve releases support favorable observed credit costs. Deposit margin compression, experienced securities losses and quarterly accumulated-other-comprehensive-income deterioration demonstrate funding and market exposures. Missing asset-quality detail, duration, hedging and rate sensitivities limit assessment of combined balance-sheet risk.

earnings resilience · 3/4 · Year-to-date common earnings increased 25% to $4.866 billion, with positive earnings throughout the displayed quarterly series. Third-quarter earnings declined sequentially. These results demonstrate strong recent resilience, while market-sensitive client activity and favorable reinvestment yields limit conclusions about performance under a substantially different environment.

Capital allocation56

Qualitative bank assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy financial-industry-1; not an industrial ratio score or credit rating.

capital efficiency · 3/4 · Annualized third-quarter GAAP common ROE of 16.0% and improvement from 6.5% in 2022 to 13.9% in 2025 demonstrate stronger equity efficiency. This assessment uses common equity returns, without equating tangible-equity returns to consolidated capital productivity. Distributions and leverage also influence the result.

distributions and buffers · 2/4 · Third-quarter dividends of $436 million and repurchases of $937 million were below $1.608 billion of common earnings; year-to-date payout was 86%. June ratios exceeded stated requirements. Distributions and accumulated-other-comprehensive-income deterioration nevertheless reduced September CET1, supporting a mixed balance between payouts and retained buffers.

dilution and cost · 2/4 · Outstanding common shares fell from 688.236 million at year-end to 672.898 million in September, and diluted average shares also declined. Substantial repurchases therefore achieved net share reduction. The approved CEO equity award remains a compensation cost; complete stock-compensation expense and financing economics are not supplied.

investment discipline · 2/4 · Reported investment spending, efficiency savings, completed platform activation and production AI deployment show implementation alongside improved earnings. They do not establish project-level returns or acquisition outcomes. The approximately $500 million incremental investment and $450 million efficiency-savings figures remain 2026 targets, limiting a stronger discipline assessment.

Management63

Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.

capital discipline · 2/4 · Growing earnings, net share reduction and reported efficiency savings support discipline. The 86% year-to-date payout nevertheless accompanies declining regulatory ratios; distributions and accumulated-other-comprehensive-income deterioration reduced quarterly CET1. Investment spending is reported, but project-level returns are not established.

incentive alignment · 2/4 · Actual NEO ownership compliance, CEO retention requirements and clawback provisions support alignment. Compliance includes half of restricted stock and unvested RSUs. The approved $25 million RSU and 869,263-option award has fifth- and sixth-anniversary service vesting; its size and employment condition temper the assessment.

execution · 3/4 · Reported revenue and earnings growth, consecutive sales growth, completed platform activation and approximately 220 enterprise AI solutions in production support strong execution. Attribution of aggregate gains to particular initiatives remains indirect. Annual investment and savings targets are not treated as achieved outcomes.

governance · 3/4 · Annual majority-vote elections, independent lead-director powers and independent Risk and Audit Committees provide concrete oversight safeguards. The chairman and CEO roles remain combined. Disclosed structures support a strong assessment, but do not independently establish exceptional oversight effectiveness or consistently superior governance outcomes.

Evidence

3 Innovating new products and solutions • Continuous product innovation and track record of growth (e.g., Buyside Trading Solutions, Collateral One, Borrow Plus) • Connecting traditional and digital financial ecosystems with continued progress on 24/7 payments, digital cash and tokenized infrastructure, combining capabilities from across BNY's platforms Accelerating AI • Investments in our people, infrastructure, platform and broader ecosystem have created a strong foundation on which we are building applied AI solutions into our workflows and across the entire company • AI-integration has started to show tangible benefits across the entire client lifecycle: innovating, prospecting, onboarding, transacting 2026 Mid-year Business Update Serving our clients as One BNY • 14 consecutive quarters of YoY sales growth • Record sales performance in 1Q26 and 2Q26 • Larger, more comprehensive client solutions, with average deal size in 1H26 up >20% YoY • ~10% of clients generating sales in 1H26 are new to BNY Unlocking scale and growth across our platforms • 10 consecutive quarters of positive operating leverage • Completed activation phase of the platform operating model in 2Q26, shifting focus to realizing the full benefits of operating as one company • Tracking toward ~$500mm of incremental investments and ~$450mm of efficiency savings in 2026 Strong execution continues to accelerate growth and strengthen our competitive position ROTCE (excluding notable items) 21% 22% 24% 26% 30% FY22 FY23 FY24 FY25 1H26 29% 30% 33% 36% 39% FY22 FY23 FY24 FY25 1H26 Pre-tax Margin (excluding notable items) 0% 0% 2% 3% FY22 FY23 FY24 FY25 1H26 Organic Fee Growth (YoY) 4% 7% 5% 8% 13% FY22 FY23 FY24 FY25 1H26 Total Revenue (YoY) (b) Represents a non-GAAP measure.
2026-07-15 filed mid-year presentation, business update: sales, platform activation, prospective investments and savings · Filed 15/07/2026

6 3Q26 vs. $mm, unless otherwise noted 3Q26 2Q26 3Q25 Asset Servicing $1,264 5% 12% Issuer Services 449 (3) 43 Total investment services fees $1,713 2% 19% Foreign exchange revenue 171 (16) 20 Other fees(a) 78 1 7 Investment and other revenue 93 N/M N/M Net interest income 765 (2) 14 Total revenue $2,820 —% 15% Provision for credit losses 4 N/M N/M Noninterest expense 1,808 5 10 Income before income taxes $1,008 (9)% 24% $bn, unless otherwise noted 3Q26 2Q26 3Q25 Pre-tax margin 35.8% 39.3% 33.1% Assets under custody and/or administration ("AUC/A")(trn) $45.9 $45.3 $41.5 Deposits (average) $192 $194 $183 Issuer Services Total debt serviced (trn) $15.4 $15.2 $14.5 Number of Depositary Receipts programs 1,670 1,655 1,601 Securities Services Select Income Statement Data Select Income Statement Data Key Performance Indicators (b)(c) • Total revenue of $2,820mm up 15% YoY – Investment services fees up 19% YoY > Asset Servicing up 12% YoY, primarily reflecting higher client activity, net new business and market values > Issuer Services up 43% YoY, primarily reflecting higher Corporate Trust fees – Foreign exchange revenue up 20% YoY – Net interest income up 14% YoY • Noninterest expense of $1,808mm up 10% YoY, primarily reflecting higher revenue-related expenses and investments, partially offset by efficiency savings and lower severance expense • Income before income taxes of $1,008mm up 24% YoY Note: See page 10 in the Appendix for corresponding footnotes.
2026-10-15 filed quarterly presentation, Securities Services: activity, revenue drivers, investments and efficiency savings · Filed 15/10/2026

bps – basis points. •Net interest income increased year-over-year primarily reflecting the reinvestment of investment securities at higher yields and balance sheet growth, partially offset by deposit margin compression.
2026-10-15 filed earnings release, net interest income: reinvestment yields, balance-sheet growth and deposit margin compression · Filed 15/10/2026

•Sequentially, net interest income decreased primarily reflecting lower deposit balances, partially offset by the reinvestment of investment securities at higher yields.
2026-10-15 filed earnings release, sequential net interest income drivers · Filed 15/10/2026

THE BANK OF NEW YORK MELLON CORPORATION CONSOLIDATED FINANCIAL HIGHLIGHTS (dollars in millions, except per common share amounts, or unless otherwise noted) 3Q26 vs.
2026-10-15 filed financial supplement, consolidated financial highlights: units and comparison context · Filed 15/10/2026

YTD26 vs. 3Q26 2Q26 1Q26 4Q25 3Q25 2Q26 3Q25 YTD26 YTD25 YTD25 Selected income statement data Fee and other revenue $ 4,253 $ 4,252 $ 4,039 $ 3,833 $ 3,845 — % 11 % $ 12,544 $ 11,303 11 % Net interest income 1,423 1,446 1,370 1,346 1,236 (2) 15 4,239 3,598 18 Total revenue 5,676 5,698 5,409 5,179 5,081 — 12 16,783 14,901 13 Provision for credit losses 1 (8) (7) (26) (7) N/M N/M (14) (6) N/M Noninterest expense 3,489 3,439 3,400 3,360 3,236 1 8 10,328 9,694 7 Income before income taxes 2,186 2,267 2,016 1,845 1,852 (4) 18 6,469 5,213 24 Provision for income taxes 499 475 386 376 395 5 26 1,360 1,099 24 Net income $ 1,687 $ 1,792 $ 1,630 $ 1,469 $ 1,457 (6) % 16 % $ 5,109 $ 4,114 24 % Net income applicable to common shareholders of The Bank of New York Mellon Corporation $ 1,608 $ 1,696 $ 1,562 $ 1,427 $ 1,339 (5) % 20 % $ 4,866 $ 3,879 25 % Diluted earnings per common share $ 2.34 $ 2.45 $ 2.24 $ 2.02 $ 1.88 (4) % 24 % $ 7.02 $ 5.39 30 % Average common shares and equivalents outstanding – diluted (in thousands) 686,913 692,223 698,164 705,140 712,854 (1) % (4) % 693,005 720,344 (4) % Financial ratios (Returns are annualized) Pre-tax operating margin 38.5 % 39.8 % 37.3 % 35.6 % 36.4 % 38.5 % 35.0 % Return on common equity 16.0 % 17.2 % 16.1 % 14.5 % 13.7 % 16.4 % 13.7 % Return on tangible common equity – Non-GAAP (a) 29.0 % 31.3 % 29.3 % 26.6 % 25.6 % 29.9 % 25.9 % Non-U.S.
2026-10-15 filed financial supplement, consolidated quarterly and year-to-date results, diluted shares and annualized returns · Filed 15/10/2026

Interest rates can change from time to time without notice at the discretion of BNY.
Business disclosures retrieved 2026-10-22, Asset Servicing credit and debit interest rate policy · Retrieved 22/10/2026

Please note the Surcharge Fee Schedules are subject to change and can be requested at any time.
Business disclosures retrieved 2026-10-22, specific surcharge fee schedules · Retrieved 22/10/2026

The terms of any products or services provided by BNY to a client, including without limitation any administrative, valuation, trade execution or other services shall be solely determined by the definitive agreement relating to such products or services.
Business disclosures retrieved 2026-10-22, definitive client agreements governing product and service terms · Retrieved 22/10/2026

Depending on market conditions, a fund may reduce the shareholder servicing fee paid.
Business disclosures retrieved 2026-10-22, mutual-fund shareholder-servicing fee reduction provision · Retrieved 22/10/2026

Such shareholder support services may include, but not be limited to, answering client inquiries, processing dividend payments, providing assistance to clients in changing dividend options, account designations and addresses, aggregating and processing purchase and redemption transactions, providing periodic statements showing fund balances and purchases, sales and positions in the fund, providing sub-accounting services to the fund for shares held by BNY Asset Servicing’s clients and forwarding to the client communications from the fund or its distributor as requested by the fund, its distributor or the client.
Business disclosures retrieved 2026-10-22, scope of shareholder support and account administration services · Retrieved 22/10/2026

4 Our Vision: AI for Everyone, Everywhere, and Everything Success in AI adoption and implementation starts with culture CULTURE BREADTH DEPTH • BNY’s cultural transformation of the past few years, including our ongoing transition into the platforms operating model, have created a fertile ground for AI adoption and implementation • Proprietary AI training and development programs available to every employee, beginning with every analyst as part of their orientation programming – Delivered 171,000 AI learning hours in 2025, spanning live AI bootcamps, curated learning pathways and personalized AI learning courses • 100% of employees have access to cutting-edge technology and deep research capabilities through Eliza, BNY’s AI platform • Approximately 50% of employees are daily users of AI and over 50% are building AI agents, supported by our global AI talent development programs that train our people – both engineers and employees without a technical background – to embed AI directly into daily workflows • ~220 enterprise AI solutions in production, and ~140 digital employees • Enhanced security and resilience • Deepening process excellence across: – High-volume workflows – embedding AI to automate at scale, e.g., multi-currency payments processing – Specialized products – applying domain-trained AI to complex financial activities, e.g., anomaly detection in net asset value ("NAV") calculation – Customized solutions – delivering client-specific solutions, e.g., onboarding, portfolio-level credit risk analysis
2026-04-16 filed presentation, reported AI access, usage and production deployment · Filed 16/04/2026

•we may not realize some or all of the expected benefits of our transition to a platforms operating model;
2026-02-25 filed Form 10-K, risk of unrealized platform operating-model benefits · Filed 25/02/2026

•we are subject to competition in all aspects of our business, which could negatively affect our ability to maintain or increase our profitability;
2026-02-25 filed Form 10-K, competition risk across the business · Filed 25/02/2026

Consolidated and largest bank subsidiary regulatory capital ratios June 30, 2026 Dec.
2026-07-31 filed Form 10-Q, regulatory capital table: June 30, 2026 measurement-date context · Filed 31/07/2026

31, 2025 Well capitalized Minimum required Capital ratios Capital ratios (a) Consolidated regulatory capital ratios: (b) Advanced Approaches: CET1 ratio N/A (c) 8.5 % 12.4 % 13.0 % Tier 1 capital ratio 6 % 10 15.1 16.0 Total capital ratio 10 12 15.8 16.7 Standardized Approach: CET1 ratio N/A (c) 8.5 % 11.0 % 11.9 % Tier 1 capital ratio 6 % 10 13.4 14.6 Total capital ratio 10 12 14.2 15.4 Tier 1 leverage ratio N/A (c) 4 5.9 6.0 SLR (d) N/A (c) 3.5 6.3 6.7 The Bank of New York Mellon regulatory capital ratios: (b)(e) CET1 ratio 6.5 % 7 % 14.6 % 16.3 % Tier 1 capital ratio 8 8.5 14.6 16.3 Total capital ratio 10 10.5 14.8 16.6 Tier 1 leverage ratio 5 4 6.2 6.5 SLR (d) 3.5 3 7.1 7.7
2026-07-31 filed Form 10-Q, consolidated and largest bank subsidiary capital ratios and stated requirements · Filed 31/07/2026

6 BNY 3Q26 Financial Results CAPITAL AND LIQUIDITY Capital and liquidity ratios Sept.
2026-10-15 filed earnings release, capital and liquidity table heading and September date context · Filed 15/10/2026

30, 2026 June 30, 2026 Dec. 31, 2025 Consolidated regulatory capital ratios: (a) CET1 ratio 10.9 % 11.0 % 11.9 % Tier 1 capital ratio 13.1 13.4 14.6 Total capital ratio 13.8 14.2 15.4 Tier 1 leverage ratio (a) 5.7 5.9 6.0 Supplementary leverage ratio (a) 6.0 6.3 6.7 BNY shareholders’ equity to total assets ratio 8.8 % 8.5 % 9.4 % BNY common shareholders’ equity to total assets ratio 8.0 % 7.6 % 8.4 % Average LCR (a) 111 % 111 % 112 % Average NSFR (a) 129 % 130 % 130 % Book value per common share $ 58.43 $ 58.82 $ 57.36 Tangible book value per common share – Non-GAAP (b) $ 32.22 $ 32.81 $ 31.64 Common shares outstanding (in thousands) 672,898 678,504 688,236 (a) Regulatory capital and liquidity ratios for Sept.
2026-10-15 filed earnings release, September 30, 2026 capital, liquidity and outstanding-share comparisons · Filed 15/10/2026

30, 2026 are preliminary. For our CET1, Tier 1 capital and Total capital ratios, our effective capital ratios under the U.S.
2026-10-15 filed earnings release, September 30, 2026 preliminary regulatory-ratio qualifier · Filed 15/10/2026

capital rules are the lower of the ratios as calculated under the Standardized and Advanced Approaches, which for the periods presented, was the Standardized Approach.
2026-10-15 filed earnings release, effective capital ratio methodology: lower of Standardized and Advanced Approaches · Filed 15/10/2026

•CET1 capital of $21.0 billion decreased compared with June 30, 2026, primarily reflecting capital returned through common stock repurchases and dividends and a decline in accumulated other comprehensive income, partially offset by capital generated through earnings.
2026-10-15 filed earnings release, quarterly CET1 decline and its drivers · Filed 15/10/2026

•Diluted EPS of $2.34, increased 24% Profitability •Pre-tax operating margin of 38.5% •ROTCE of 29.0% (a) Balance sheet •Average deposits of $311 billion, increased 4% year-over-year and decreased 1% sequentially
2026-10-15 filed earnings release, average deposits and year-over-year and sequential changes · Filed 15/10/2026

•Tier 1 leverage ratio of 5.7%, decreased 42 bps year-over-year and 24 bps sequentially Capital distribution •Returned $1.4 billion of capital to common shareholders •$436 million of dividends •$937 million of share repurchases •Total payout ratio of 86% year-to-date
2026-10-15 filed earnings release, common dividends, repurchases and year-to-date payout · Filed 15/10/2026

After haircuts and the impact of trapped liquidity, consolidated HQLA totaled $186 billion at June 30, 2026 and $223 billion at March 31, 2026, and averaged $142 billion for the second quarter of 2026 and $150 billion for the first quarter of 2026.
2026-07-31 filed Form 10-Q, consolidated HQLA after haircuts and trapped-liquidity adjustments · Filed 31/07/2026

3Q26 2Q26 3Q25 Total assets $464 —% 6% Total interest-earning assets $397 —% 6% Cash and reverse repo 146 (1) — Loans 87 1 19 Investment securities 154 (1) 4 Noninterest-bearing $53 (3)% 4% Interest-bearing 258 (1) 4 Total deposits $311 (1)% 4% Net Interest Income and Balance Sheet Trends Net Interest Income ($mm) 1.31% 1.38% 1.38% 1.45% 1.43% 3Q25 4Q25 1Q26 2Q26 3Q26 Net Interest Margin Balance Sheet Trends ($bn, average) • Net interest income of $1,423mm up 15% YoY and down 2% QoQ – YoY increase primarily reflecting the reinvestment of investment securities at higher yields and balance sheet growth, partially offset by deposit margin compression – QoQ decrease primarily reflecting lower deposit balances, partially offset by the reinvestment of investment securities at higher yields • Net interest margin of 1.43% up 12 bps YoY and down 2 bps QoQ • Avg.
2026-10-15 filed quarterly presentation, average balance-sheet composition, deposit funding and net interest income drivers · Filed 15/10/2026

•we have experienced, and may continue to experience, unrealized or realized losses on securities related to volatile and illiquid market conditions, reducing our capital levels and/or earnings;
2026-02-25 filed Form 10-K, experienced securities losses and potential capital and earnings effects · Filed 25/02/2026

Return on common equity was 16.6% for the six months ended June 30, 2026, 13.9% for the year ended December 31, 2025, 11.9% for the year ended December 31, 2024, 8.6% for the year ended December 31, 2023 and 6.5% for the year ended December 31, 2022.
2026-07-15 filed presentation, GAAP common equity returns for first-half 2026 and 2022–2025 · Filed 15/07/2026

Our CEO is required to hold shares of common stock valued at seven times base salary and all other Executive Committee members are required to hold shares of common stock equal to four times base salary.
2026-03-05 filed definitive proxy, executive stock ownership requirements · Filed 05/03/2026

Our CEO has an additional retention requirement that requires him to retain 50% of net after-tax shares delivered until age 60.
2026-03-05 filed definitive proxy, CEO additional share-retention requirement · Filed 05/03/2026

As of the record date, all NEOs meet the stock ownership guidelines.
2026-03-05 filed definitive proxy, actual NEO ownership-guideline compliance at the record date · Filed 05/03/2026

We also include 50% of restricted stock and unvested RSUs; however, unvested PSUs and stock options are not counted toward compliance with the stock ownership guidelines.
2026-03-05 filed definitive proxy, unvested-equity inclusion and exclusions in ownership compliance · Filed 05/03/2026

(e) On December 8, 2025, the Human Resources and Compensation Committee (“HRCC”) of the Company unanimously voted to award the Company’s Chairman and Chief Executive Officer, Robin Vince, an equity award (the “Award”), consisting of Restricted Stock Units (“RSUs”) with a grant date value of $25.0 million and 869,263 stock options.
2025-12-11 filed Form 8-K, approved CEO RSU and option award · Filed 11/12/2025

The RSUs will vest and the options will become exercisable in two equal installments on the fifth and sixth anniversaries of the grant date, subject to Mr.
2025-12-11 filed Form 8-K, CEO award fifth- and sixth-anniversary vesting schedule · Filed 11/12/2025

Vince’s continued employment with the Company through the applicable vesting date.
2025-12-11 filed Form 8-K, continued-employment condition completing the vesting disclosure · Filed 11/12/2025

The Award will be subject to the Company’s clawback and recoupment policy and stock ownership guidelines as described in the Company’s Proxy Statement.
2025-12-11 filed Form 8-K, CEO award clawback, recoupment and ownership provisions · Filed 11/12/2025

Each director must be elected annually by a majority of the votes cast.
2026-03-05 filed definitive proxy, annual majority-vote director elections · Filed 05/03/2026

A director who does not receive a majority of votes cast is required to tender his or her resignation upon certification of the vote • No supermajority voting: Stockholder actions require only a majority of votes cast (not a majority of shares present and entitled to vote) • No “poison pill” (stockholders’ rights plan) • Independent board comprised solely of independent directors, other than our CEO, who meet in regular executive sessions without management • Strong independent board leadership: A strong independent lead director (“Lead Director”) appointed by the independent directors acts as a key liaison between independent directors and the Chairman of the Board and CEO • The Lead Director role is robust with clear and comprehensive duties, including approving board agendas, authority to call special meetings of the independent directors, and setting agendas for executive sessions and meetings of the independent directors.
2026-03-05 filed definitive proxy, independent board, lead-director powers and shareholder safeguards · Filed 05/03/2026

•Legal Oversight Committee •New Product & Activity Committee •Operational Risk Committee •Platforms Risk Committee •Regulatory Oversight Committee •Resolvability Steering Committee •Technology Risk Committee The Risk Committee is comprised entirely of independent directors and meets on a regular basis to oversee the risk management policies and practices of the Company’s global operations and oversee the Company’s global risk management framework.
2026-02-25 filed annual report, independent Risk Committee and oversight responsibilities · Filed 25/02/2026

The Audit Committee is also comprised entirely of independent directors.
2026-02-25 filed annual report, Audit Committee independence · Filed 25/02/2026

Publication history

Publication history
Version	Updated	Competitive advantage
12	29/10/2026	uncertain
11	28/10/2026	uncertain
10	24/10/2026	uncertain
9	23/10/2026	uncertain
8	22/10/2026	uncertain
7	19/10/2026	uncertain
6	19/10/2026	uncertain
5	19/10/2026	uncertain
4	18/10/2026	uncertain
3	18/10/2026	uncertain

Sources

Research methodology and limitations · What is an economic moat?