BNY Mellon reduced its prime lending rate from 7.25% to 7.00% effective Oct. 30, 2025.
The 0.25‑percentage‑point cut follows the bank’s strategy to adjust benchmarks in response to market conditions, including the Federal Reserve’s policy rate and competitive pressures from other banks.
In Q3 2025, BNY Mellon reported net interest income of $1.2 billion, up 18% year‑over‑year, and a net interest margin of 1.31%, up 15 basis points year‑over‑year, indicating margin expansion prior to the rate change.
The bank’s revenue for Q3 2025 reached $5.08 billion, up 9% year‑over‑year, and return on tangible common equity stood at 26%, underscoring a strong capital position that supports margin resilience.
The prime rate cut is expected to lower borrowing costs for corporate and consumer clients, potentially stimulating loan demand and expanding the loan book, while the diversified revenue mix and capital strength mitigate margin compression.
Historically, BNY Mellon has adjusted its prime rate in response to market conditions, such as the September 2025 reduction from 7.50% to 7.25% and the July 2023 increase from 8.25% to 8.50%.
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