Bank of New York Mellon's stock surged 5.23% on Wednesday during the pre-market trading session, following the company's better-than-expected fourth-quarter 2024 financial results and optimistic outlook.

The financial services giant reported adjusted earnings per share of $1.72 for the quarter, a 33% increase from the prior year and surpassing analysts' consensus estimate of $1.56. Total revenue climbed 11% year-over-year to $4.85 billion, exceeding the projected $4.66 billion.

The strong performance was driven by a 9% rise in fee revenue to $3.51 billion, reflecting higher market values, increased client activity, and new business wins. Additionally, net interest income grew 8% to $1.19 billion, benefiting from higher investment portfolio yields and balance sheet growth, partially offset by changes in deposit mix.

BNY Mellon's bottom line was further bolstered by a 16% reduction in non-interest expenses, driven by adjustments to a special assessment by the Federal Deposit Insurance Corporation (FDIC), cost savings initiatives, and lower severance costs. These factors partially offset higher revenue-related expenses, employee raises, and strategic investments.

Looking ahead, BNY Mellon expects continued growth in fee revenue and a mid-single-digit percentage increase in net interest income for 2025. The bank also highlighted its efforts to capitalize on emerging opportunities, such as providing custody services for crypto-based exchange-traded products, as it aims to bridge the gap between traditional and digital asset markets.