Bank of New York Mellon (BNY) approached Northern Trust to discuss a potential merger, reported The Wall Street Journal, citing sources familiar with the matter.  

Although the discussions are in the early stages, BNY is considering its next steps, which may include a formal bid. 

Northern Trust, based in Chicago, has a market value exceeding $21bn, with its share price increasing by approximately 9% this year.  

BNY has seen its shares surge over 50% in the past year, pushing its market capitalisation above $65bn.  

The potential merger could create an investment-management powerhouse overseeing more than $3tn. 

In the first quarter of 2025, BNY reported a revenue of $4.8bn, up 6% year-over-year. 

The financial services provider saw a 19% jump in its quarterly net income to $1.22bn.

The Trump administration has indicated a greater willingness to approve large banking deals, a departure from recent years.  

Both BNY and Northern Trust offer a range of services, including asset servicing, money management, and back-office solutions for investment firms.  

The CEOs of BNY and Northern Trust held at least one discussion, according to sources, but no concrete offer was addressed.  

The sources warned that these conversations may not lead to any deal. 

BNY’s CEO, Robin Vince, who previously worked at Goldman Sachs, has been at the helm since September 2022. 

Northern Trust’s CEO, Michael O’Grady, is a former dealmaker, adding further intrigue to the potential merger.  

Last month, BNY obtained a regional headquarters licence from the Ministry of Investments in Saudi Arabia.  

The new regional headquarters in Riyadh will enhance BNY’s strategic and corporate services across the Middle East. 

In a statement, BNY highlighted its asset servicing solutions in Saudi Arabia, which include global custody services, global risk solutions, custody FX, and institutional accounting.  

These services are offered under a Capital Markets Authority licence, further strengthening BNY’s position in the region.