BNY raised its 2026 revenue forecast above Wall Street expectations on Wednesday after posting record second-quarter revenue, driven by higher interest income, fees and rising equity markets that boosted the value of client assets.

Market Boost

The results reinforce a theme emerging across the financial sector this earnings season: buoyant markets are lifting fee income. For custodian banks, rising asset values expand the pool of assets on which fees are charged, while increased client trading boosts transaction revenue.

BNY’s assets under custody and administration climbed 12% in the quarter to $62.6 trillion. Its assets under management increased 6% to $2.2 trillion.

Securities Services Shine

The bank’s asset servicing business, which handles the safekeeping and settlement of trades, posted a 12% rise in revenue. Meanwhile, its issuer services segment, which supports clients issuing securities, reported a 23% increase.

BNY posted net income applicable to common shareholders of $1.7 billion, or $2.45 per share, for the second quarter. That compares with $1.4 billion, or $1.93 per share, a year earlier.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.