By Nicholas G. Miller

Bank of New York Mellon reported higher first-quarter profit as its chief executive said that there was cause for optimism about the economy and markets despite the conflict in the Middle East.

"If you just look at the core buying and the skew in the market, it sort of feels like markets kind of want to go up," CEO Robin Vince said in an interview with reporters. "But there are an awful lot of things you've got to keep your eye on because we could get surprised at any time."

The stock market posted a record high Wednesday, while volatility indexes are back to levels before the war, he said, adding that risk is improving. Additionally, the conclusion of tax season will improve the retail market in coming weeks, while the end of the corporate earnings blackout will likely bring stock buybacks, he said.

But Vince cautioned that economic risks from the conflict in the Middle East and high energy prices remains.

"The war is not over. Energy prices are higher than they were at the beginning, and that will feed through," Vince said. Energy prices remaining at high levels would impact pricing, the cost of goods and credit. "But we aren't there today, and so we've got to really wait and see," he added.

For the first quarter, the company posted higher profit driven by growth in fee revenue and net interest income.

The company reported net income of $1.63 billion, or $2.24 a share, up from $1.22 billion, or $1.58 a share, the year prior.

Adjusted earnings were $2.25 a share. Analysts polled by FactSet had expected $1.93 a share.

Revenue rose 13% to $5.41 billion. Wall Street had expected $5.18 billion.

Fee revenue increased 11%, due to higher client activity and new business, higher market values and foreign exchange revenue and a favorable impact of a weaker U.S. dollar.

Net interest income grew 18%, reflecting the continued reinvestment of investment securities at higher yields and balance sheet growth.

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

(END) Dow Jones Newswires

April 16, 2026 07:55 ET (11:55 GMT)

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