BNY Announces Intention to Increase Quarterly Common Stock Dividend by 13 Percent to $0.53 per Share

Rhea-AI Summary

BNY Mellon (NYSE: BK) has announced plans to increase its quarterly cash dividend by 13% from $0.47 to $0.53 per share, potentially starting in the third quarter of 2025, subject to Board approval. The announcement follows the Federal Reserve's 2025 bank stress test results, which highlighted BNY's resilient business model and strong balance sheet.

The Federal Reserve confirmed BNY's preliminary Stress Capital Buffer (SCB) requirement will remain at 2.5%, the regulatory floor, effective from October 1, 2025, to September 30, 2026. The company has maintained this minimum SCB level since its introduction in 2020. Additionally, BNY retains authorization for its existing share repurchase program announced in April 2024.

Positive

• Quarterly dividend increase of 13% to $0.53 per share
• Stress test results confirm resilient business model and strong balance sheet
• SCB requirement remains at minimum 2.5% regulatory floor
• Continuation of existing share repurchase program authorization

Negative

• None.

News Market Reaction

+1.59%

1 alert

+1.59% News Effect

On the day this news was published, BK gained 1.59%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, July 1, 2025 /PRNewswire/ -- The Bank of New York Mellon Corporation ("BNY") (NYSE: BK), a global financial services company, today announced its intention to increase its quarterly cash dividend on its common shares by 13% from $0.47 to $0.53 per share, commencing as early as the third quarter of 2025, subject to approval by the company's Board of Directors.

On June 27, 2025, the Federal Reserve released the results of its 2025 bank stress test, which underscore BNY's resilient business model and strong balance sheet. The Federal Reserve also notified the company that its preliminary Stress Capital Buffer ("SCB") requirement will remain 2.5%, equal to the regulatory floor. This SCB is expected to be effective from October 1, 2025, to September 30, 2026, under the current capital plan rule. Since the introduction of the SCB requirement in 2020, BNY's SCB has consistently remained at the 2.5% floor. The company does not anticipate any impact on its SCB requirement based on the Federal Reserve's notice of proposed rulemaking to reduce the volatility of the SCB requirement issued on April 17, 2025.

"BNY plays an important role in global financial markets, serving our clients with innovative and resilient platforms that enable them to grow their businesses and navigate an increasingly complex world. The results of the Federal Reserve's annual bank stress test demonstrate our strength and ability to support clients through extreme economic stress scenarios," said Robin Vince, Chief Executive Officer of BNY. "Our work to operate as a platform company is delivering real value and significant momentum. We are pleased to announce our intention to increase BNY's common dividend and we remain focused on delivering greater value for our shareholders and clients."

The company continues to be authorized to repurchase common shares under its existing share repurchase program approved by the Board of Directors, as announced in April 2024. The timing, manner and amount of repurchases are subject to various factors, including the company's capital position and prevailing market conditions.

About BNY

BNY is a global financial services company that helps make money work for the world – managing it, moving it and keeping it safe.  For more than 240 years BNY has partnered alongside clients, putting its expertise and platforms to work to help them achieve their ambitions.  Today BNY helps over 90% of Fortune 100 companies and nearly all the top 100 banks globally access the money they need.  BNY supports governments in funding local projects and works with over 90% of the top 100 pension plans to safeguard investments for millions of individuals, and so much more.  As of March 31, 2025, BNY oversees $53.1 trillion in assets under custody and/or administration and $2.0 trillion in assets under management.

BNY is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Headquartered in New York City, BNY has been named among Fortune's World's Most Admired Companies and Fast Company's Best Workplaces for Innovators.  Additional information is available on www.bny.com.  Follow on LinkedIn or visit the BNY Newsroom for the latest company news.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which may be expressed in a variety of ways, including the use of future or present tense language, relate to, among other things, BNY's repurchases of common stock, common stock dividends, capital base, performance, ability to meet regulatory requirements and expectations regarding the Federal Reserve's April 17, 2025 notice of proposed rulemaking. These statements are not guarantees of future results or occurrences, are inherently uncertain and are based upon current beliefs and expectations of future events, many of which are, by their nature, difficult to predict, outside of BNY's control and subject to change. Actual results may differ, possibly materially, from the anticipated results expressed or implied in these forward-looking statements as a result of a number of important factors, including, but not limited to, the factors identified above and the risk factors and other uncertainties set forth in BNY's Annual Report on Form 10-K for the year ended December 31, 2024, the Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 and BNY's other filings with the Securities and Exchange Commission. All statements in this press release speak only as of the date on which such statements are made, and BNY undertakes no obligation to update any statement to reflect events or circumstances after the date on which such forward-looking statement is made or to reflect the occurrence of unanticipated events.

Contacts:

Media
Anneliese Diedrichs
+44 7930 135 524
anneliese.diedrichs@bny.com 

Investors
Marius Merz
+1 212 298 1480
marius.merz@bny.com 

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SOURCE BNY

FAQ

What is BNY Mellon's new dividend amount for 2025?

BNY Mellon plans to increase its quarterly dividend by 13% from $0.47 to $0.53 per share, starting as early as Q3 2025, subject to Board approval.

How did BNY Mellon perform in the Federal Reserve's 2025 stress test?

BNY Mellon passed the stress test, which demonstrated the company's resilient business model and strong balance sheet. The bank maintained its Stress Capital Buffer (SCB) at the minimum requirement of 2.5%.

When will BNY Mellon's new dividend rate take effect?

The increased dividend rate of $0.53 per share is expected to commence as early as the third quarter of 2025, pending Board approval.

What is BNY Mellon's current share repurchase program status?

BNY Mellon continues to be authorized to repurchase common shares under its existing share repurchase program announced in April 2024, with timing and amount subject to capital position and market conditions.

What is BNY Mellon's Stress Capital Buffer requirement for 2025-2026?

BNY Mellon's SCB requirement will remain at 2.5%, the regulatory floor, effective from October 1, 2025, to September 30, 2026.