BNY 4Q Profit Rises, CEO Calls Pressure on Fed 'Counterproductive' — Update

By Nicholas G. Miller

Bank of New York Mellon's chief executive criticized the Trump administration's pressure on the Federal Reserve in a media call Tuesday that came after the company reported record revenue for 2025.

Chief Executive Robin Vince said that the pressure on the Fed is "counterproductive" to the administration's goal of improving affordability. The independence of the Fed is a critical underpin of the bond market, "so shaking at the foundation of it doesn't seem to be to us accomplishing the administration's primary objectives," Vince said.

Threatening that independence could push up interest rates, increasing the cost of borrowing for Americans "because the market potentially has to worry about something that frankly, they shouldn't have to worry about," he said.

The Justice Department recently opened an investigation into Fed Chair Jerome Powell over his testimony last summer about the central bank's building-renovation project. Powell claimed the investigation was an attempt to pressure the Fed to lower interest rates.

"Independent central banks with the ability to independently set monetary policy in the long-term interests of the nation is a pretty well established thing that we've seen all around the world over a very long period of time," Vince said. "It's served economies and capital markets really well."

On Tuesday, BNY reported fourth-quarter net income of $1.43 billion, or $2.02 a share, up from $1.13 billion, or $1.54 a share, the year prior.

Adjusted earnings came in at $2.08 a share. Analysts polled by FactSet had expected $1.99 a share.

Total revenue rose 7% to $5.18 billion, beating Wall Street's forecast of $5.14 billion. Top-line gains were fueled by an 13% increase in net interest income as a result of higher investment yields and 5% growth in fee revenue due to higher market values, net new business and increased client activity. That helped to offset a decline in investment and other revenue.

The company's securities services business saw 7% revenue growth and its market and wealth services segment posted an 8% increase in revenue, offsetting a 2% revenue decline in its investment and wealth-management business.

Bank of New York Mellon also saw a benefit of $26 million in its provision for credit losses as compared with the prior year, reflecting improvements in commercial real estate exposure and the macroeconomic forecast.

The company guided for total revenue to increase 5% in 2026. It also boosted its medium-term financial targets, increasing its pre-tax margin goal over the next three to five years to 38%, up from its prior target of 33%.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

January 13, 2026 08:53 ET (13:53 GMT)