SKN | BNY Moves to Redeem Series F Preferred Stock, Reshaping Its Capital Structure

Key Takeaways:

• BNY will redeem all outstanding Series F Preferred Stock and its corresponding depositary shares in September 2026.
• The redemption covers 1,000,000 depositary shares, each representing a 1/100th interest in a Series F Preferred Stock share.
• BNY will pay $1,000 per depositary share, equivalent to $100,000 per underlying preferred share, with the redemption payment scheduled for September 21.
• The action illustrates BNY’s ongoing ability to manage its preferred capital instruments and determine the composition of its funding structure.

The Bank of New York Mellon Corporation (BNY) has announced plans to redeem all outstanding shares of its Series F Noncumulative Perpetual Preferred Stock and the associated depositary shares. The decision represents a defined capital-management action by one of the world’s largest financial institutions and provides a useful window into how BNY is managing its preferred equity structure.

Why BNY Is Redeeming the Series F Securities

BNY currently has 10,000 Series F Preferred Stock shares outstanding, represented by 1,000,000 depositary shares. Each depositary share represents a 1/100th interest in one preferred share. Under the announced terms, the redemption date will coincide with the dividend payment date on September 20, 2026.

The redemption payment will be made on September 21, the first business day following the redemption date. BNY will pay $1,000 for each depositary share, equivalent to $100,000 for each underlying Series F Preferred Stock share. The redemption amount is separate from the dividend payment payable to eligible holders.

What Changes for Holders

Following the September 20 redemption date, the Series F Preferred Stock and related depositary shares will no longer be considered outstanding. Dividends associated with the preferred stock represented by those depositary shares will also cease to accrue from that date.

The securities are held in book-entry form through The Depository Trust Company, meaning the redemption process will be administered through established market infrastructure. Investors holding the depositary shares beneficially will receive the redemption payment through the bank or broker where their position is maintained.

What the Decision Says About BNY’s Capital Management

For BNY, the announcement is less about an individual security and more about active balance-sheet and capital-structure management. Preferred stock can form an important component of a financial institution’s capital framework, while redemption decisions allow management to adjust the composition of that capital as funding priorities evolve.

The announcement itself does not provide a detailed explanation for why BNY selected this particular instrument for redemption. Accordingly, the transaction should be viewed primarily as a clearly defined capital-management decision rather than interpreted as evidence of a broader strategic shift that the company has not stated.

Why This Matters for Sophisticated Banking Clients

For HNWI clients, the relevance lies in understanding how major banks manage their capital architecture. Institutions such as BNY sit at the center of global custody, asset servicing and institutional finance, making their funding and capital decisions relevant to the broader resilience of the financial infrastructure on which sophisticated portfolios depend.

The redemption also highlights an important distinction between banking relationships and capital instruments. A bank can remain strategically important to global wealth structures while selectively refinancing, redeeming or restructuring individual securities.

For a confidential discussion regarding your cross-border banking structure, institutional relationships and international wealth architecture, contact our senior advisory team.