The Bank of New York Mellon Corporation (BK) 8-K The Bank of New York Mellon

Exhibit 99.1

The Bank of New York Mellon

Quarterly Earnings Summary

Financial Results

January 17, 2008

Table of Contents

Cautionary Statement/Additional Information	2
Fourth Quarter 2007 Financial Highlights (vs. fourth quarter 2006)	3
Financial Summary/Key Metrics	4
Assets Under Management/Custody and Administration	5
Fee and Other Revenue	6
Net Interest Revenue	7
Noninterest Expense	8
Securities Available for Sale	9
Consolidation of Three Rivers Funding Corporation (TRFC)	10
Nonperforming Loans/Provision and Reserve for Credit Exposure/Institutional Credit Strategy	11
Merger Update – Integration Milestones	12
Business Sectors
•        Asset Management	13
•        Wealth Management	14
•        Asset Servicing	15
•        Issuer Services	16
•        Clearing and Execution Services	17
•        Treasury Services	18
•        Other Segment	19
Summary of Non-operating Items	20
Supplemental Information - Reconciliation of Earnings Per Share – GAAP to Non-GAAP/ Revision of Prior Period Financial Statements	21
Supplemental Information – Trend of Earnings Per Share Presented on a GAAP and Non-GAAP basis	22

All narrative comparisons in this Quarterly Earnings Summary are with the fourth quarter of 2006 and all information is reported on a continuing operations basis, unless otherwise noted.

Throughout this Quarterly Earnings Summary, certain measures, which are noted, exclude certain items, including the impact of the extraordinary item in 4Q07. We believe these measures are useful to the investment community in analyzing the financial results and trends of ongoing operations. We believe they facilitate comparisons with prior periods and reflect the principal basis on which our management monitors financial performance. These non-GAAP items are also excluded from our segment measures used internally to evaluate segment performance in accordance with GAAP because management does not consider them particularly relevant or useful in evaluating the operating performance of our business segments. Pro forma combined financial results for The Bank of New York Mellon prior to the consummation of the merger exclude the pro forma impact of incremental purchase accounting including intangible amortization resulting from the merger.

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

CAUTIONARY STATEMENT

A number of statements (i) in this Quarterly Earnings Summary, (ii) in our presentations and (iii) in the responses to questions are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which may be expressed in a variety of ways, including the use of future or present tense language, relate to, among other things, the Corporation’s future financial goals, including future revenue, expenses and earnings, new business wins, and pipelines for new business; matters relating to the consolidation of TRFC, including future earnings generated by its assets, funding costs, impact on adjusted tangible common equity ratio and impact on income; statements with respect to the merger integration, including revenue synergies and targeted run rates, expense synergy targets, estimated merger and integration charges, anticipated completion date for the bank consolidation; credit strategy; and the expected closing date of the ARX Capital Management acquisition, as well as BNY Mellon’s overall plans, strategies, goals, objectives, expectations, estimates and intentions, and are based on assumptions that involve risks and uncertainties and that are subject to change based on various important factors (some of which are beyond BNY Mellon’s control). Actual results may differ materially from those expressed or implied as a result of these risks and uncertainties, including, but not limited to, the businesses of Mellon and The Bank of New York may not be integrated successfully or the integration may be more difficult, time-consuming or costly than expected; the combined company may not realize, to the extent or at the time we expect, revenue synergies and cost savings from the transaction; service quality metrics in Asset Servicing may not be attained; revenue following the transaction may be lower than expected as a result of losses of customers or other reasons; deposit attrition, operating costs, customer loss and business disruption following the transaction, including, without limitation, difficulties in maintaining relationships with employees, may be greater than expected; changes in political and economic conditions; changes in the relevant benchmark to measure changes in investment management fees; equity, fixed-income and foreign exchange market fluctuations; changes in the mix of assets under management; changes in the mix of deposits; the price of oil; the effects of the adoption of new accounting standards; corporate and personal customers’ bankruptcies; market volatility; operational risk; inflation; levels of tax-free income; technological change; success in the timely development of new products and services; competitive product and pricing pressures within the Corporation’s markets; consumer spending and savings habits; interest rate fluctuations; geographic sources of income; monetary fluctuations; acquisitions and integrations of acquired businesses; changes in law; changes in fiscal, monetary, regulatory, trade and tax policies and laws; success in gaining regulatory approvals when required; the effects of terrorist acts and the results of the war on terrorism; as well as other risks and uncertainties detailed from time to time in the filings of the Corporation with the SEC and in The Bank of New York’s and Mellon’s historical reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the SEC. Such forward-looking statements speak only as of Jan. 17, 2008 and BNY Mellon undertakes no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events.

ADDITIONAL INFORMATION

The results prior to the consummation of the merger on July 1, 2007, reflect the sum of The Bank of New York and Mellon’s historical results, but do not include the pro forma impact of purchase accounting adjustments. The business sector combined results for all periods reflect actions taken to report consistent transfer pricing and cost allocation methodologies as well as intercompany eliminations between The Bank of New York and Mellon. As a result of actions taken in the fourth quarter of 2007, the business sector results for the first, second and third quarters of 2007 reflect revisions from results reported in the third quarter of 2007 Combined Quarterly Earnings Summary to reflect consistent reporting. We have completed the harmonization process for the business sectors.

Page - 2

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

FOURTH QUARTER 2007 FINANCIAL HIGHLIGHTS (vs. fourth quarter 2006)

	Income after-tax from- Continuing Operations	EPS from Continuing Operations				EPS Growth vs.
						4Q06		3Q07
	$millions
GAAP before extraordinary (loss)	$700	$.61				2	%	9	%
Non-GAAP adjusted
Ex merger and integration/non-operating (Page 20)	$769	$.67				10	%	2	%
Ex merger and integration /non-operating and
CDO write-down	$887	$.77				26	%	17	%
	4Q07	% of(a)				Growth vs. 4Q06(a)
Business Segments - Pro forma Combined Basis	Total Revenue	Revenue		Pre-tax Income		Revenue		Pre-tax Income
Asset & Wealth Management:
Asset Management	$  906	23	%	23	%	(3	)%	(2	)%
Wealth Management	255	7		5		3		-
	1,161	30		28		(2	)	(2	)
Institutional Services:
Securities Servicing
Asset Servicing	1,258	33		30		42		125
Issuer Services	632	16		20		16		19
Clearing & Execution Services	435	11		8		17		11
	2,325	60		58		29		54
Treasury Services	405	10		14		22		54
	2,730	70		72		28		54
Total Business Segments(b)	$  3,891	100	%	100	%	17	%	33	%

KEY POINTS Pro forma Combined Basis(a)

• Generating strong revenue and earnings momentum

• Revenue + 12% (page 4); +17% excluding a collateralized debt obligation (CDO) write-down ($200 million pre-tax).

• Expense +7% (page 4)

• 450 basis points of positive operating leverage year-over-year; 1,050 basis points excluding the CDO write-down.

• Pre-tax margin of 34% in 4Q07; 37% excluding the CDO write-down, up 100 basis points from 3Q07.

• 32% of revenues from outside the U.S., excluding the CDO write-down.

• Assets under management of $1.1 trillion, + 11% and assets under custody and administration of $23.1 trillion, + 16%

• 4Q07 net asset flows totaled $19 billion, $73 billion for full-year 2007.

• Effective tax rate, excluding merger and integration expense, was 33.2% for 4Q07 compared with 31.3% in 4Q06 and 30.8% in 3Q07

• Acquired the remaining 50% interest in the ABN AMRO Mellon joint venture.

• Continued to reduce corporate risk profile and exit non-core businesses

• Recorded a $200 million pre-tax ($118 million after-tax) CDO write-down

• Consolidated our bank-sponsored conduit resulting in an extraordinary loss of $180 million after-tax

• Executing on a strategy to reduce the impact of credit risk on earnings

• Tier 1 and Adjusted tangible shareholders’ equity capital ratios were 9.10% and 4.96%, respectively, at year-end. Consolidating the bank-sponsored conduit reduced both ratios by 24 and 22 basis points, respectively.

• The Board of Directors authorized an additional 35 million shares buyback program (5.1 million shares remaining under the current authorization).

• Merger synergies

• $96 million of quarterly expense synergies in 4Q07.

• Exceeding expense synergies target: 25% vs. 15% in 2007.

(a) Results exclude merger and integration expenses, intangible amortization expenses and items detailed on page 20.

(b) Excludes the Other segment.

Page - 3

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

FINANCIAL SUMMARY

The Bank of New York Mellon Corporation

Continuing Operations (a)

	Pro-forma combined results for BNY Mellon															4Q07 vs.
(dollar amounts in millions, non-FTE basis unless otherwise noted)	2006			2007
	4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			4Q06		3Q07
Fee and other revenue-excludes certain items in footnote(b)	$	2,841		$	2,740		$	2,929		$	2,903		$	3,044	(c)	7	%	5	%
Net interest revenue-excludes certain items in footnote(b)		560			552			586			691			752		34		9
Total revenue-excludes certain items in footnote(b)		3,401			3,292			3,515			3,594			3,796		12(d)		6(e)
Provision for credit losses		(10)			(12)			(18)			-			20		N/M		N/M
Total noninterest expense - excluding merger and integration expense, amortization of intangible assets and items in footnote(b)		2,331			2,230			2,358			2,318			2,494		7		8
Pre-tax income from continuing operations-before extraordinary (loss) (non-GAAP)	$	1,080		$	1,074		$	1,175		$	1,276		$	1,282		19	%(d)	-	%(e)
Merger and integration expense:
The Bank of New York Mellon		11			12			151			205			111
Acquired Corporate Trust Business		17			11			12			13			13
Amortization of intangible assets		57			40			40			131			131
Non-operating items in footnote(b)		48			12			81			33			-
Pre-tax income from continuing operations – before extraordinary (loss) (GAAP)	$	947		$	999		$	891		$	894		$	1,027
Provision for income taxes											252			327
Income from continuing operations-before extraordinary (loss)											642			700
Discontinued operations income (loss) net of tax											(2)			-
Extraordinary (loss) on consolidation of commercial paper conduit, net of tax											-			(180)
Net income										$	640		$	520
KEY METRICS:
Pre-tax operating margin (FTE) excluding merger and integration expense, intangible amortization and non-operating items on page 20		32	%		33	%		34	%		36	%		34	%
Return on tangible common equity:
GAAP-before extraordinary (loss)											46.0	%		45.0	%(f)
Non-GAAP adjusted(b)											53.1	%		48.9	%(f)
Return on equity:
GAAP-before extraordinary (loss)											8.9	%		9.5	%(g)
Non-GAAP adjusted(b)											11.6	%		11.5	%(g)
Fee and other revenue as a percentage of total revenue (FTE)		83	%		83	%		83	%		81	%		80	%
Non-U.S. Percent of revenue (FTE) (h)		27	%		28	%		30	%		30	%		32	%
Employees											40,600			42,100
Tier I capital ratio											9.12	%		9.10	%
Adjusted tangible shareholders’ equity to assets ratio(i)											5.31	%		4.96	%
Market capitalization(in millions)										$	50,266		$	55,878
Common shares outstanding (in thousands)											1,138,874			1,145,983

(a) Results prior to 3Q07 exclude the pro forma impact of incremental purchase accounting, including intangible amortization resulting from The Bank of New York Mellon merger.

(b) Excludes merger and integration expense, and intangible amortization expense, calculations also exclude the non-operating items detailed on page 20.

(c) Includes $200 million CDO write-down

(d) Excluding the CDO write-down, total revenue and pre-tax income before amortization and extraordinary loss would have increased17% and37%, respectively.

(e) Excluding the CDO write-down, total revenue and pre-tax income before amortization and extraordinary loss would have increased11% and16%, respectively.

(f) Excluding the CDO write-down, returns on tangible common would have been51.8% and55.8%, respectively.

(g) Excluding the CDO write-down, returns on equity would have been11.1% and13.2%, respectively.

(h) Calculated excluding the $200 million CDO write-down in 4Q07.

(i) Shareholders’ equity less goodwill and intangible assets plus the benefit of the deferred tax liability associated with tax deductible intangibles divided by total assets less goodwill and intangible assets.

Page - 4

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

ASSETS UNDER MANAGEMENT/CUSTODY AND ADMINISTRATION TREND

	Pro-forma combined results for BNY Mellon										4Q07 vs.
	2006		2007
	4th Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		4Q06		3Q07
Assets under management(in billions)	$	1,011	$	1,025	$	1,082	$	1,106	$	1,121	11	%	1	%
Market value of assets under custody/ administration at period-end(in trillions)(a)	$	20.0	$	21.1	$	22.2	$	22.7	$	23.1	16	%	2	%
Market value of securities on loan at period-end(in billions)	$	607	$	661	$	678	$	663	$	633	4	%	(5	)%

(a) Revised for Acquired Corporate Trust Business and harmonization adjustments.

ASSETS UNDER MANAGEMENT FLOWS(a)

Changes in market value of assets under management from Sept. 30, 2007 to Dec. 31, 2007 - by business sector

	Asset	Wealth
(in billions)	Management	Management	Total
Market value of assets under management at Sept. 30, 2007	$ 1,020	$ 86	$ 1,106
Net inflows:
Long-term	(21)	1	(20)
Money market	39	-	39
Total net inflows	18	1	19
Net market depreciation (b)	(3)	(1)	(4)
Market value of assets under management at Dec. 31, 2007	$ 1,035 (c)	$ 86	$ 1,121

(a) Preliminary.

(b) Includes the effect of changes in foreign exchange rates.

(c) Excludes $9 billion subadvised for other sectors.

COMPOSITION OF ASSETS UNDER MANAGEMENT

At period-end(a)	Pro-forma combined results for BNY Mellon
	2006		2007
	4th Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr
Equity	42	%	42	%	42	%	41	%	41	%
Money market	22		22		23		25		26
Fixed income	20		21		20		19		20
Overlay and alternative assets	16		15		15		15		13
Total	100	%	100	%	100	%	100	%	100	%

(a) Excludes securities lending cash management assets.

Page - 5

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

FEE AND OTHER REVENUE

	Pro-forma combined results for BNY Mellon															4Q07
(dollar amounts in millions, non-FTE basis	2006			2007												vs.
unless otherwise noted)		4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr		4Q06		3Q07
Securities servicing fees:
Asset servicing	$	595		$	640		$	704		$	720		$	809		36	%	12	%
Issuer services		385			371			415			436			438		14		-
Clearing and execution services		260			274			285			304			314		21		3
Total securities servicing fees		1,240			1,285			1,404			1,460			1,561		26		7
Asset and wealth management fees		775			801			846			854			887		14		4
Performance fees		214			49			63			(3	)		62		(71	)	N/M
Foreign exchange and other trading activities		155			182			176			238			305		97		28
Treasury services		118			116			121			122			121		3		(1	)
Distribution and servicing		80			84			83			95			113		41		19
Financing-related fees		71			63			69			51			52		(27	)	2
Investment income		81			61			77			22			52		(36	)	136
Securities gains (losses)		2			2			1			(9	)		(191	)	N/M		N/M
Other		105			97			89			101			82		(22	)	(19	)
Total fee and other revenue (non-FTE)	$	2,841		$	2,740		$	2,929		$	2,931		$	3,044		7	(a)	4	(a)
Total fee and other revenue (FTE)	$	2,850		$	2,750		$	2,939		$	2,940		$	3,055		7		4
Fee and other revenue as a percentage of total revenue (FTE)		83	%		83	%		83	%		81	%		80	%
S&P 500 Index - period-end		1418			1421			1503			1527			1468		4	%	(4	)%
S&P 500 Index - daily average		1389			1424			1496			1490			1496		8	%	-
FTSE 100 Index-period-end		6221			6308			6608			6467			6457		4	%	-
FTSE 100 Index-daily average		6146			6265			6534			6366			6455		5	%	1	%

(a) Adjusted for the CDO write-down, total fee and other revenue increased14% and11% compared to the fourth quarter of 2006 and third quarter of 2007, respectively.

N/M - Not meaningful.

KEY POINTS

• Total securities servicing fees increased 26% reflecting:

• Asset servicing fees increased 36% reflecting a 169% increase in securities lending revenue and increased client activity related to market volatility as well as net new business

• Issuer services fees growth of 14% primarily due to strong growth in depositary receipts.

• Clearing and execution services fees were up 21% principally due to increased activity resulting from market volatility along with continued growth in money market and mutual fund positions.

• Asset and wealth management fees increased 14% primarily due to net asset flows and favorable market conditions

• Performance fees were $62 million in 4Q07 compared to $214 million in 4Q06 and a negative $3 million in 3Q07. The year-over-year decline represents a lower level of performance fees generated from alternative and other quantitative products relative to the exceptional levels a year ago. The sequential quarter increase principally reflects the impact of market volatility during 3Q07 on certain alternative and quantitative products.

• Foreign exchange and other trading activities increased 97% reflecting the benefit of higher client volumes as well as a significant increase in currency volatility and a higher valuation of the credit derivative portfolio due to widening credit spreads.

• Distribution and servicing fees increased 41% reflecting higher mutual fund activity and higher mutual fund market values.

• Investment income decreased $29 million compared to 4Q06 and increased $30 million sequentially. Fluctuations to prior periods resulted primarily from the change in market value of seed capital investments associated with our asset management business.

• Securities gains (losses) totaled $191 million in losses in 4Q07, which included a $200 million CDO write-down in the securities available for sale portfolio (see page 9).

• Other revenue compared to 4Q06 decreased $23 million related to economic value payments received for the Acquired Corporate Trust Business in 4Q06. The sequential decline of $19 million primarily reflects a settlement received ($28 million) for early termination of a contract associated with the clearing business in 3Q07.

Page - 6

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

NET INTEREST REVENUE

	Pro-forma combined results for BNY Mellon															4Q07
	2006			2007												vs.
(dollar amounts in million) (a)	4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			4Q06		3Q07
Net interest revenue (non-FTE)	$	560		$	552		$	586		$	669		$	752		34	%	12	%
Net interest revenue (FTE)		565			558			592			674			757		34		12
Net interest margin (FTE)		2.06	%		2.08	%		1.95	%		2.02	%		2.16	%	10	bp	14	bp
Selected average balances:
Money market investments	$	24,895		$	22,141		$	31,818		$	39,965		$	44,203		78	%	11	%
Trading account securities		3,125			3,257			1,892			1,872			2,351		(25	)	26
Securities		39,148			40,835			43,705			46,167			46,959		20		2
Loans		41,436			42,037			43,824			45,517			47,109		14		3
Interest-earning assets		108,604			108,270			121,239			133,521			140,622		29		5
Interest-bearing deposits		63,488			61,432			72,450			80,870			86,278		36		7
Noninterest-bearing deposits		22,128			23,300			24,002			26,466			28,449		29		7
Noninterest-bearing deposits as a percentage of interest-earning assets		20	%		22	%		20	%		20	%		20	%

(a) Prior periods calculated on a continuing operations basis even though the balance sheet, in accordance with GAAP, is not restated for discontinued operations.

bp - basis points.

KEY POINTS

• Net interest revenue (FTE) increased 34% year-over-year and 12% (unannualized) sequentially, principally reflecting a higher level of average interest-earning assets driven by growth in client deposits and wider spreads on investment securities.

• The increase in interest-earning assets reflects the impact of a higher level of interest and noninterest-bearing deposits driven by higher client activity across our businesses.

• The net interest margin increased 10 bps year-over-year and 14 bps sequentially principally reflecting the benefit of wider spreads on investment securities. Sequentially the margin benefited from the impact of market volatility on short-term deposits, a continued flight to quality during the quarter resulting in strong flows of client deposits, as well as the benefit of recent Federal Reserve interest rate reductions.

Page - 7

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

NONINTEREST EXPENSE

	Pro-forma combined results for BNY Mellon															4Q07
	2006			2007												vs.
(dollar amounts in millions)(a)	4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			4Q06		3Q07
Staff:
Compensation	$	742		$	739		$	754		$	764		$	758		2	%	(1	)%
Incentives		447			327			362			347			443		(1	)	28
Employee benefits		182			191			187			169			164		(10	)	(3	)
Total staff		1,371			1,257			1,303			1,280			1,365		-		7
Professional, legal and other purchased services		248			245			253			241			272		10		13
Net occupancy		141			135			172			144			145		3		1
Distribution and servicing		132			132			141			127			133		1		5
Software		79			72			77			91			78		(1	)	(14	)
Furniture and equipment		76			78			80			80			82		8		3
Sub-custodian		47			50			60			58			66		40		14
Business development		66			58			72			56			72		9		29
Clearing and execution		38			37			44			52			49		29		(6	)
Communications		31			25			33			33			34		10		3
Other		150			153			204			195			198		32		2
Subtotal		2,379			2,242			2,439			2,357			2,494		5		6
Merger & integration expense:
The Bank of New York Mellon		11			12			151			205			111		N/M		(46	)%
Acquired Corporate Trust Business		17			11			12			13			13		(24	)	-
Amortization of intangible assets		57			40			40			131			131		N/M		-
Total noninterest expense	$	2,464		$	2,305		$	2,642		$	2,706		$	2,749		12		2
Total staff expense as a percentage of total revenue (FTE)		40	%		38	%		37	%		35	%		36	%

(a) Results prior to 3Q07 exclude the pro forma impact of incremental purchase accounting intangible amortization resulting from The Bank of New York Mellon merger.

N/M - Not meaningful.

KEY POINTS

• Strong revenue momentum and overall expense control, as well as the benefit of $96 million in merger-related synergies resulted in 450 basis points of positive operating leverage year-over-year, 1,050 basis points excluding the impact of the CDO write-down.

• Total staff expense decreased $ 6 million due to the impact of merger-related synergies as well as lower asset management performance fee related incentives.

• Increased professional, legal and other purchased services, net occupancy, furniture and equipment, business development and other expense primarily reflects business growth, strategic initiatives and the impact of acquisitions.

• Increased clearing and execution and sub-custodian expenses primarily reflects expense growth in support of revenue growth.

Page - 8

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

SECURITIES AVAILABLE FOR SALE

At Dec. 31, 2007, investment securities totaled $48.7 billion. As of that date, our mortgage and asset-backed securities portfolio of $41.6 billion (excluding TRFC securities) were rated 96% AAA, 3% AA, and 1% A. Included in this portfolio were $379 million of collateralized debt obligations (CDO), at par, that contained subprime exposure. Based on deteriorating conditions in the U.S. housing market, we recognized a pre-tax loss of $200 million ($118 million after-tax) for other than temporary impairment related to these securities. The $179 million carrying value of the CDOs at Dec. 31, 2007 was 47% of par.

In the third quarter of 2007, we acquired $375 million of asset-backed securities in a structured investment vehicle (SIV) from a portfolio advised by one of our asset managers. During the fourth quarter of 2007, $75 million of these securities matured and we sold $174 million of these securities, resulting in a pre-tax loss of $8 million. We applied a similar discount to the $126 million of remaining securities which resulted in a write-down of $6 million. In the fourth quarter of 2007, we acquired additional SIV securities with a fair market value of $45 million from affiliated funds. The $165 million carrying amount of remaining SIV securities at Dec. 31, 2007 was 88% of par.

During the fourth quarter of 2007, we sold other investment securities available for sale, recognizing a pre-tax gain of $23 million.

As of Dec. 31, 2007, within our investment securities portfolio, our mortgage-backed securities with subprime exposure were $1.5 billion (excluding TRFC securities) and asset-backed collateralized debt obligations as described above were $179 million. Ratings on these securities are below:

Ratings at Dec. 31, 2007		Asset-backed
	Mortgage-backed Securities(a)	collateralized debt obligations
AAA	18%	44%
AA	65	38
A	16	18
BBB	1	-
Total	100%	100%

(a) With subprime exposure.

The unrealized net of tax loss on our securities available for sale was $339 million at Dec. 31, 2007, compared with $250 million at Sept. 30, 2007. At Dec. 31, 2006, the unrealized gains and losses on securities available for sale netted to zero.

Page - 9

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

CONSOLIDATION OF THREE RIVERS FUNDING CORPORATION (TRFC)

On Dec. 31, 2007 we called the first loss notes of TRFC, making us the primary beneficiary and triggering the consolidation of TRFC. If we had not called the first loss notes, TRFC would not have been consolidated under FIN46R. The consolidation resulted in the recognition of an extraordinary loss (non-cash accounting charge) of $180 million after-tax, or 16 cents per share, representing the current mark to market discount from par associated with spread widening for the assets in TRFC.

Strategically TRFC is not core to our focus on high growth global opportunities in Asset Management and Securities Servicing; it had an immaterial impact on our consolidated financial results, generating only $1 million in fee revenue in the third quarter of 2007. Furthermore, the continuing disruption in the capital markets negatively impacted TRFC funding costs and related returns, which was in sharp contrast to our funding costs and balance sheet strength. This consolidation improves the profitability of this portfolio and eliminates a management distraction.

In addition to the extraordinary loss, the size of the 2007 year-end balance sheet increased by the full amount of third party funding, approximately $4.0 billion. At Dec. 31, 2007, we held the remaining funding of $136 million. Our primary capital ratios were affected as follows by the consolidation:

	Prior To Consolidation	Post Consolidation
Tier 1 capital	9.34%	9.10%
Adjusted TCE	5.18%	4.96%

Prospectively, based on our excess liquidity, the third party funding for TRFC will be eliminated over the course of the first quarter of 2008 resulting in an expected improvement in our adjusted tangible common equity ratio of approximately 10 bps during the first quarter of 2008.

Also prospectively, the $180 million after-tax mark to market on the TRFC assets is expected to be accreted into income over the remaining lives of the assets, which are projected to average approximately 4-5 years, based on the credit quality of the assets.

The fair value of TRFC’s asset-backed securities portfolio totaled approximately $3.5 billion at Dec. 31, 2007. In addition to these securities, TRFC has approximately $400 million of securitizations of client receivables that are structured to meet a credit rating of A. Below are TRFC’s asset and mortgage-backed securities by credit rating.

Credit ratings for TRFC’s asset and mortgage-backed securities Dec. 31, 2007 (dollar amounts in millions)	Variable and fixed rate mortgages	Home equity lines of credit	Credit cards	Subprime mortgage loans	Other asset-backed securities	Total	%
AAA	$  1,608	$  799	$      -	$  270	$  30	$  2,707	78%
AA	-	-	39	-	20	59	2
A	-	-	701	-	-	701	20
Total	$  1,608	$  799	$  740	$  270	$  50	$  3,467	100%

We will integrate these securities into our investment securities portfolio in the first quarter of 2008.

Page - 10

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

NONPERFORMING LOANS

Nonperforming loans were $186 million at Dec. 31, 2007, up from $37 million at Dec. 31, 2006 and up from $35 million at Sept. 30, 2007. The increase relates principally to liquidity facilities to two SIVs ($81 million), a related party loan provided to support an investment management product that is currently being unwound and various smaller loans. The SIV exposure added to nonperforming loans represents all of the SIV exposure within our loan portfolio.

PROVISION AND RESERVE FOR CREDIT EXPOSURE

The provision for credit losses totaled $20 million in the fourth quarter of 2007 compared with a credit of $15 million in the fourth quarter of 2006 and no provision in the third quarter of 2007. In the third quarter of 2007, there was no net provision which was made possible in part by a $15 million release of reserves from the sale of leases. The reserve for loan losses was $327 million at Dec. 31, 2007, $332 million at Sept. 30, 2007 and $287 million at Dec. 31, 2006. The reserve for unfunded commitments was $167 million at Dec. 31, 2007, $178 million at Sept. 30, 2007 and $150 million at Dec. 31, 2006.

INSTITUTIONAL CREDIT STRATEGY

• Focus on investment grade names to support cross selling

• Avoid single name/industry concentrations, using credit default swaps as appropriate

• Exit high risk portfolios

• Target of $4.5 billion of exposure reduction

• Lowers expected loss and potential volatility in credit provision

• Modest reduction in credit revenue and associated capital markets fees

Page - 11

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

Merger Update - Integration Milestones

1) Revenue Synergies

• Continue to meet interim targets

• Targeted run rate of $250-400 million by 2011

• Ideas grouped into 3 major categories

- Revenue enhancements (best practices)

- Within line of business

- Across lines of business

	Actual									Cumulative Targets
(dollar amounts in millions)	3Q07			4Q07			2007			2007			2008			2009			Goal
2) Expense Synergies - represents     synergies achieved for the period	$	79/11	%	$	96/14	%	$	175/25	%	$	105/15	%	$	350/50	%	$	595/85	%	$	700	(a)
Annualized	$	316/45	%	$	384/55	%		N/A
# of net positions eliminated								1,723												3,900
(a)    The $700 million represents a nominal amount; deal model assumes a 3% annual inflation factor.
Business Sector Expense	3Q07			4Q07			2007
Synergies Achieved (in millions)
Asset Management	$	6		$	7		$	13
Wealth Management		4			5			9
Asset Servicing		28			32			60
Issuer Services		8			10			18
Clearing & Execution Services		1			2			3
Treasury Services		10			12			22
Subtotal		57			68			125
Other		22			28			50
Total	$	79		$	96		$	175
Total - annualized	$	316		$	384			N/A

3) Merger & Integration Charges (The Bank of New York Mellon)

(in millions)			Cumulative Thru 2007(e)
	4Q07			Included in			Total
	Total		Expense	Goodwill	Total		Estimated
Personnel-related(b)	$    67		$    187	$107	$  294		$   575
Integration/conversion	65		154	-	154		350
One-time costs(c)	22		30	42	72		225
Transaction costs(d)	2		117	45	162		175
Total	$  156		$  488	$194	$  682		$1,325
% of total estimated	12	%			51	%

4) Service Quality Goals for 2010-Asset Servicing

• #1 vs. major peers in the three major external global client satisfaction surveys

- Global Custodian Survey – BNY Mellon #1 rated custodian among the large custodian peer group (released January 2008)

• Expect 85% of our clients to be satisfied/highly satisfied with our service quality.

5) Consolidation of Banks - anticipate completion by early 3Q08

(b) Includes severance, retention, relocation expenses and accelerated vesting of stock options and restricted stock.

(c) Includes facilities related, balance sheet write-offs, vendor contract modifications, rebranding and net gain (loss) on disposals.

(d) Includes investment banker and legal fees and foundation funding.

(e) Represents total merger and integration charges from 4Q06 - 4Q07.

Page - 12

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

BUSINESS SECTORS

ASSET MANAGEMENT(provides asset management services through a number of asset management companies to institutional and individual investors)

• Represented 23% of pre-tax income in the fourth quarter of 2007(a)

	Pro-forma combined results for BNY Mellon															4Q07
(dollar amounts in millions, unless otherwise	2006			2007												vs.
noted; presented on an FTE basis)	4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			4Q06		3Q07
Revenue:
Asset and wealth management:
Mutual funds	$	255		$	276		$	291		$	307		$	323		27	%	5	%
Institutional clients		316			320			341			331			342		8		3
Private clients		41			42			45			46			48		17		4
Total asset and wealth management		612			638			677			684			713		17		4
Performance fees		214			49			63			(3	)		62		(71	)	N/M
Distribution and servicing		78			82			82			89			104		33		17
Other		30			16			41			(25	)		10		N/M		N/M
Total fee and other revenue		934			785			863			745			889		(5	)	19
Net interest revenue (expense)		(2	)		4			(7	)		(5	)		17		N/M		N/M
Total revenue		932			789			856			740			906		(3	)	22
Noninterest expense (ex. intangible amortization)		590			515			546			540			561		(5	)	4
Income before taxes (ex. intangible amortization)		342			274			310			200			345		1		73
Amortization of intangible assets(b)		12			13			13			70			70		N/M		-
Income before taxes	$	330		$	261		$	297		$	130		$	275		(17	)	112
Memo: Income before taxes (ex. intangible amortization) non-GAAP(d)	$	353		$	274		$	310		$	232		$	345		(2	)%	49	%
Market value of assets under management at period-end(in billions)	$	934		$	950		$	1,006		$	1,028		$	1,044		12	%	2	%
Assets under management - net inflows (outflows)
(in billions):
Long-term	$	9		$	(4	)	$	5		$	1		$	(21	)
Money market	$	1		$	5		$	17		$	27		$	39
Pre-tax operating margin (excluding intangible amortization) - non-GAAP(d)		38	%		35	%		36	%		31	%		38	%
Adjusted pre-tax operating margin - non-GAAP(c)(d)		44	%		42	%		43	%		38	%		45	%

(a) Excluding intangible amortization and the Other segment.

(b) Results prior to 3Q07 exclude the pro forma impact of incremental purchase accounting intangible amortization resulting from The Bank of New York Mellon merger.

(c) Calculation excludes amortization of intangible assets and nets distribution and servicing expense from revenue.

(d) 3Q07 noninterest expense included a $32 million charge related to the write-off of the value of the remaining interest in a hedge fund manager that was sold in 2006. The pre-tax operating margin and adjusted pre-tax operating margin have been adjusted for the items detailed in the table on page 20.

KEY POINTS

• Assets under management totaled $1.044 billion, an increase of 12%.

• Net money market inflows totaled $39 billion, a record quarterly net inflow

• Net long-term outflows totaled $21 billion driven by outflows at TBC Asset Management ($11 billion) and lower margin currency overlay products ($7 billion).

• Asset and wealth management fees increased 17% relative to 4Q06 reflecting new business and higher equity market levels.

• The year-over-year decline in performance fees reflects lower performance fees on alternative and other quantitative products relative to the exceptional levels of a year ago.

• Distribution and servicing fees increased 33% reflecting higher mutual fund activity as well as higher mutual fund market values.

• Other fee revenue decreased $20 million compared to 4Q06 and increased $35 million sequentially. The year-over-year decline principally reflects the lower market value of seed capital investments due to the market environment. The sequential increase reflects the 3Q07 market environment impact on the market value of seed capital investments.

• Noninterest expense (excluding intangible amortization) decreased 5% due primarily to lower performance fee related incentives as well as overall expense control.

• 40% non-U.S. revenue in 4Q07

• Announced agreement to acquire ARX Capital Management, a Brazilian asset manager with $2.6 billion in AUM. Expected to close in 1Q08.

• Announced agreement to establish an asset management joint venture in China – BNY Mellon Western Fund Management.

Page - 13

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

WEALTH MANAGEMENT(provides investment management, wealth management and banking services to high-net-worth individuals, families and charitable gift programs, foundations and endowments)

• Represented 5% of pre-tax income in the fourth quarter of 2007(a)

	Pro-forma combined results for BNY Mellon															4Q07
(dollar amounts in millions, unless otherwise	2006			2007												vs.
noted; presented on an FTE basis)	4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			4Q06		3Q07
Revenue:
Asset and wealth management	$	147		$	149		$	154		$	152		$	156		6	%	3	%
Other		8			8			7			10			14		75		40
Total fee and other revenue		155			157			161			162			170		10		5
Net interest revenue		92			90			91			85			85		(8	)	-
Total revenue		247			247			252			247			255		3		3
Provision for credit losses		-			-			-			-			-		-		-
Noninterest expense (excluding intangible amortization)		162			157			163			162			169		4		4
Income before taxes (excluding intangible amortization)		85	(b)		90			89			85			86		1		1
Amortization of intangible assets(c)		1			1			1			21			21		N/M		-
Income before taxes	$	84		$	89		$	88		$	64		$	65		(23	)%	2	%
Average loans	$	6,135		$	6,170		$	6,491		$	6,586		$	6,867		12	%	4	%
Average deposits	$	10,026		$	10,324		$	10,143		$	11,289		$	11,240		12	%	-
Market value of total client assets at period end(in billions)	$	155		$	158		$	162		$	170		$	170		10	%	-
Pre-tax operating margin (excluding intangible amortization)		34	%		36	%		35	%		34	%		34	%

(a) Excluding intangible amortization and the Other segment.

(b) 4Q06 includes $1 million of severance expense. Excluding this item, income before taxes (excluding intangible amortization) would have been $86 million.

(c) Results prior to 3Q07 exclude the pro forma impact of incremental purchase accounting intangible amortization resulting from The Bank of New York Mellon merger.

KEY POINTS

• Total fees increased 10% compared with 4Q06 and 5% sequentially driven by organic growth, record new business and market performance.

• Total client assets of $170 billion increased 10% compared to 4Q06, due to new business, enrichments and improved markets.

• Net interest revenue decreased 8% over the prior year and was unchanged sequentially as higher loan and deposit volumes were offset by lower spreads.

• Noninterest expense (excluding intangible amortization) increased 4% compared to both 4Q06 and 3Q07. The increase compared to 4Q06 reflects merit increases and expenses associated with new distribution channels. The increase compared to 3Q07 reflects new business acquisition and seasonal expenses.

• Wealth Management has a presence in 14 of the top 25 domestic wealth markets.

Page - 14

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

ASSET SERVICING(provides institutional trust and custody and related services and broker-dealer services to global financial institutions, corporate and public retirement funds and foundations and endowments)

• Represented 30% of pre-tax income in the fourth quarter of 2007(a)

	Pro-forma combined results for BNY Mellon															4Q07
(dollar amounts in millions, unless otherwise	2006			2007												vs.
noted; presented on an FTE basis)	4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			4Q06		3Q07
Revenue:
Securities servicing fees - Asset servicing	$	572		$	614		$	673		$	698		$	781		37	%	12	%
Foreign exchange and other trading activities		109			112			125			161			206		89		28
Other		44			49			54			48			39		(11	)	(19	)
Total fee and other revenue		725			775			852			907			1,026		42		13
Net interest revenue		159			160			186			205			232		46		13
Total revenue		884			935			1,038			1,112			1,258		42		13
Noninterest expense (excluding intangible amortization)		691			684			736			756			811		17		7
Income before taxes (excluding intangible amortization)		193			251			302			356			447		132		26
Amortization of intangible assets(b)		22			3			3			6			6		(73	)	-
Income before taxes	$	171		$	248		$	299		$	350		$	441		158		26
Memo: Income before taxes (ex. intangible amortization) non-GAAP (c)	$	199		$	251		$	302		$	356		$	447		125	%	26	%
Average deposits	$	33,023		$	34,782		$	37,850		$	38,248		$	43,196		31	%	13	%
Market value of securities on loan at period-end(in billions) (d)	$	607		$	661		$	678		$	663		$	633		4	%	(5	)%
Securities lending revenue	$	61		$	65		$	97		$	108		$	164		169	%	52	%
Global collateral management balances at period-end(in billions)	$	1,440		$	1,519		$	1,548		$	1,692		$	1,717		19	%	1	%
Pre-tax operating margin (excluding intangible amortization) non-GAAP(c)		22	%		27	%		29	%		32	%		36	%

(a) Excluding intangible amortization and the Other segment.

(b) Results prior to 3Q07 exclude the pro forma impact of incremental purchase accounting intangible amortization resulting from The Bank of New York Mellon merger.

(c) Adjusted for the items detailed on page 20.

(d) Represents the total amount of securities on loan, both cash and non-cash managed by the Asset Servicing sector.

KEY POINTS

• Asset servicing fees increased 37% reflecting a 169% increase in securities lending revenue, increased client activity related to market volatility as well as net new business.

• Foreign exchange and other trading activities increased 89% reflecting the benefit of higher client volumes as well as significant increases in currency volatility.

• Net interest revenue increased 46% due to higher average deposit levels and improved spreads.

• Noninterest expense (excluding intangible amortization) increased 17% reflecting higher staff expense in support of new business, increased sub-custodian expenses related to higher asset levels, higher joint venture pass-thru payments, as well as other growth initiatives, partially offset by merger-related expense synergies.

• Generated 2,500 bps of positive operating leverage year-over-year and 600 bps sequentially (excluding intangible amortization).

• 40% non-U.S. revenue in 4Q07

• Win ratio of 67% on 4Q07 new business opportunities

• Strong new business pipelines

• Acquired the remaining 50% interest in the ABN AMRO Mellon joint venture.

• Global Custodian Survey – BNY Mellon #1 rated custodian among the large custodian peer group (released January 2008).

Page - 15

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

ISSUER SERVICES (provides corporate trust, depositary receipt and shareowner services to corporations and institutions)

• Represented 20% of pre-tax income in the fourth quarter of 2007(a)

	Pro-forma combined results for BNY Mellon															4Q07
(dollar amounts in millions, unless otherwise	2006			2007												vs.
noted; presented on an FTE basis)	4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			4Q06		3Q07
Revenue:
Securities servicing fees - Issuer services	$	385		$	371		$	415		$	436		$	438		14	%	-	%
Other		33			37			25			24			19		(42	)	(21	)
Total fee and other revenue		418			408			440			460			457		9		(1	)
Net interest revenue		128			125			158			159			175		37		10
Total revenue		546			533			598			619			632		16		2
Provision for credit losses		(1	)		-			-			-			-		-		-
Noninterest expense (excluding intangible amortization)		293			291			297			291			324		11		11
Income before taxes (excluding intangible amortization)		254	(b)		242			301			328			308		21		(6	)
Amortization of intangible assets(c)		16			17			17			20			21		31		5
Income before taxes	$	238		$	225		$	284		$	308		$	287		21	%	(7	)%
# of corporate actions (depositary receipts)		526			344			682			540			543		3	%	1	%
Depositary receipt trading value(in billions)	$	178		$	233		$	248		$	354		$	519		192		47
Average deposits	$	12,661		$	13,549		$	21,370		$	26,153		$	28,272		123		8
Pre-tax operating margin (excluding intangible amortization)		47	%		45	%		50	%		53	%		49	%

(a) Excluding intangible amortization and the Other segment.

(b) 4Q06 includes $4 million of severance expense. Excluding this item, income before taxes (excluding intangible amortization) would have been $258 million.

(c) Results prior to 3Q07 exclude the pro forma impact of incremental purchase accounting intangible amortization resulting from The Bank of New York Mellon merger.

KEY POINTS

• Total revenue grew 16% driven by growth in Depositary Receipts, Corporate Trust and Shareowner Services.

• 14% growth in Issuer services fees due primarily to growth in Depositary Receipts driven by strong cross- border trading and by higher corporate action fees.

• Net interest revenue increased 37% as a result of significant deposit growth in both Corporate Trust and Shareowner Services, reflecting new business and increased client volumes.

• Noninterest expense (excluding intangible amortization) grew by 11%, compared to 4Q06 and 11% (unannualized) compared to 3Q07, reflecting increased expenses in support of revenue growth and monitoring of trusteeships in a volatile environment, partially offset by merger-related synergies.

• Generated 500 bps of positive operating leverage year-over-year.

• 39% non-U.S. revenue in 4Q07

Page - 16

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

CLEARING AND EXECUTION SERVICES (provides clearing, execution, financing and custody services for introducing broker-dealers and registered investment advisors)

• Represented 8% of pre-tax income in the fourth quarter of 2007(a)

	Pro-forma combined results for BNY Mellon															4Q07 vs.
(dollar amounts in millions, unless otherwise	2006			2007
noted; presented on an FTE basis)		4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr		4Q06		3Q07
Revenue:
Securities servicing fees – Clearing and execution services	$	257		$	272		$	281		$	302		$	310		21	%	3	%
Other		39			38			41			70			47		21		(33	)
Total fee and other revenue		296			310			322			372			357		21		(4	)
Net interest revenue		76			74			75			77			78		3		1
Total revenue		372			384			397			449			435		17		(3	)
Provision for credit losses		2			-			-			-			-		N/M		-
Noninterest expense (excluding intangible amortization)		254			280			295			316			306		20		(3	)
Income before taxes (excluding intangible amortization)		116			104			102			133			129		11		(3	)
Amortization of intangible assets(b)		6			6			6			6			6		-		-
Income before taxes	$	110		$	98		$	96		$	127		$	123		12	%	(3	)%
Memo: Income before taxes (excluding intangible Amortization (non-GAAP)	$	116		$	104		$	102		$	106	(c)	$	129		11	%	22	%
Average active accounts(in thousands)		5,133			5,149			5,195			5,064			5,069		(1	)	-
Average margin loans(in millions)	$	5,176		$	5,396		$	5,551		$	5,287		$	5,301		2		-
Pre-tax operating margin (excluding intangible amortization) – Non-GAAP		31	%		27	%		26	%		25	%(c)		30	%

(a) Excluding intangible amortization and the Other segment.

(b) Results prior to 3Q07 exclude the pro forma impact of incremental purchase accounting intangible amortization resulting from The Bank of New York Mellon merger.

(c) 3Q07 excludes the $27 million impact of the settlement received for the early termination of a contract detailed in the table on page 20.

KEY POINTS

• Total revenue increased 17% compared to 4Q06 and declined 3% (unannualized) compared with 3Q07.

• Clearing and execution services fees increased 21% compared to 4Q06 reflecting strong growth in trading activity along with continued growth in money market and mutual fund positions.

• Net interest revenue increased 3% compared to 4Q06 as a result of an increase customer deposits, partially offset by lower spreads driven by the impact of recent Federal Reserve interest rate reductions.

• Total revenue decreased 3% (unannualized) sequentially as 3Q07 includes the settlement ($28 million) received for early termination of a contract. Excluding this settlement, total revenue increased 3% (unannualized) sequentially.

• Noninterest expense (excluding intangible amortization) increased 20% in support of revenue growth.

Page - 17

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

TREASURY SERVICES (provides global payment services, working capital solutions, global markets and institutional banking services, including lending)

• Represented 14% of pre-tax income in the fourth quarter of 2007(a)

	Pro-forma combined results for BNY Mellon															4Q07 vs.
(dollar amounts in millions unless otherwise	2006			2007
noted; presented on an FTE basis)		4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr		4Q06		3Q07
Revenue:
Treasury services	$	111		$	109		$	112		$	114		$	118		6		4
Other		95			103			103			108			131		38		21
Total fee and other revenue		206			212			215			222			249		21		12
Net interest revenue		126			132			127			131			156		24		19
Total revenue		332			344			342			353			405		22		15
Provision for credit losses		(7	)		-			-			-			-		N/M		-
Noninterest expense (excluding intangible amortization)		206			194			204			194			198		(4	)	2
Income before taxes (excluding intangible amortization)		133	(b)		150			138			159			207		56		30
Amortization of intangible assets(c)		-			-			-			7			7		N/M		-
Income before taxes	$	133		$	150		$	138		$	152		$	200		50	%	32	%
Average loans	$	13,946		$	12,021		$	12,174		$	12,705		$	13,115		(6	)	3
Average deposits	$	19,024		$	18,428		$	19,148		$	20,632		$	20,366		7		(1	)
Pre-tax operating margin (excluding intangible amortization)		40	%		44	%		40	%		45	%		51	%

(a) Excluding intangible amortization and the Other segment.

(b) Includes $1 million of severance expense. Excluding this item, income before taxes (excluding intangible amortization) would have been $134 million.

(c) Results prior to 3Q07 exclude the pro forma impact of incremental purchase accounting intangible amortization resulting from The Bank of New York Mellon merger.

KEY POINTS

• Total revenue increased 22% compared to 4Q06 due to:

• 38% increase in other fee revenue due primarily to the higher valuation of the credit derivative portfolio as well as growth in global payment and cash management fees.

• 24% increase in net interest revenue resulting from higher deposit levels, including higher compensating balances (in lieu of treasury services fees), and wider spreads.

• Noninterest expense (excluding intangible amortization) decreased 4% reflecting the impact of merger – related synergies.

Page - 18

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

OTHER SEGMENT (primarily includes business exits and Corporate Treasury activities, merger and integration charges, and other corporate revenue and expense items)

	Pro-forma combined results for BNY Mellon
	2006			2007
(in millions, presented on an FTE basis)		4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Revenue:
Fee and other revenue	$	116		$	103		$	86		$	72		$	(93	)
Net interest revenue		(14	)		(27	)		(38	)		22			14
Total revenue		102			76			48			94			(79	)
Provision for credit losses		(4	)		(12	)		(18	)		-			20
Noninterest expense (excluding intangible amortization/merger and integration expense)		183			121			198			98			125
Income (loss) before taxes (excluding intangible amortization and merger and integration expense)		(77	)		(33	)		(132	)		(4	)		(224	)
Amortization of intangible assets(a)		-			-			-			1			-
Merger and integration expenses:
The Bank of New York Mellon		11			12			151			205			111
Acquired Corporate Trust business		17			11			12			13			13
Income (loss) before taxes	$	(105	)	$	(56	)	$	(295	)	$	(223	)	$	(348	)
Memo: Income (loss) before taxes (excluding intangible amortization and merger and integration expense) - non- GAAP(b)	$	(63	)	$	(21	)	$	(51	)	$	24		$	(224	)

(a) Results prior to 3Q07 exclude the pro forma impact of incremental purchase accounting intangible amortization resulting from The Bank of New York Mellon merger.

(b) Adjusted for items detailed in the table on page 20.

KEY POINTS

• Fee and other revenue decreased $209 million compared with the fourth quarter of 2006 reflecting the CDO write-down (see page 9).

• Net interest revenue increased $28 million due to the impact of the changing interest rate environment on Corporate Treasury allocations.

• Noninterest expense (excluding intangible amortization/merger and integration expense) decreased $58 million due in part to transitional services expense and other costs related to the Acquired Corporate Trust Business, as well as higher corporate incentives, occupancy reserves and other expenses recorded in the fourth quarter of 2006.

Further Note

As a result of actions taken in the fourth quarter of 2007, the business sector results for the first, second and third quarters of 2007 reflect revisions from results reported in the third quarter of 2007 Combined Quarterly Earnings Summary to reflect consistent reporting. We have completed the harmonization process for the business sectors.

Page - 19

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

SUMMARY OF NON-OPERATING ITEMS

Non-operating items	2006	2007
(dollar amounts in millions)	4th Qtr	1st Qtr	2nd Qtr	3rd Qtr		4th Qtr
Severance	$  26	$  -	$  -	$  -		$  -
Litigation reserve charge	-	12	5	-		-
Impairment charge	16	-	-	-		-
Occupancy charge	6	-	-	-		-
Redemption charge for subordinated debentures	-	-	46	-		-
Exit costs associated with excess office space	-	-	30	-		-
Settlement received for early termination of contract	-	-	-	(27	)	-
Write-off a remaining interest in hedge fund manager sold	-	-	-	32		-
Recalculation of yield on leveraged lease portfolio – FAS 13 (a)	-	-	-	22		-
Write-off of internally developed software	-	-	-	6		-
Reduction of pre-tax income	$  48	$  12	$  81	$  33	(b)	$  -
Memo: Sector Impact
Asset Management	$11	$  -	$-	$  32		$  -
Wealth Management	1	-	-	-		-
Asset Servicing	17	-	-	-		-
Issuer Services	4	-	-	-		-
Clearing & Execution Services	-	-	-	(27	)	-
Treasury Services	1	-	-	-		-
Other	14	12	81	28		-
Total	$  48	$  12	$  81	$  33		$  -

(a) The recalculation of the lease portfolio also resulted in a $45 million tax benefit recorded as a reduction to taxes.

(b) The after-tax impact of these items was more than offset by the tax benefit recorded on the recalculation of the yield on the leverage lease portfolio, which resulted in a net increase of approximately one cent to earnings per share in the third quarter of 2007.

Page - 20

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

SUPPLEMENTAL INFORMATION -RECONCILIATION OF EARNINGS PER SHARE – GAAP TO NON-GAAP

Reported amounts are presented in accordance with GAAP. We believe that this supplemental non-GAAP information is useful to the investment community in analyzing the financial results and trends of our business. We believe they facilitate comparisons with prior periods and reflect the principal basis on which our management internally monitors financial performance. These non-GAAP items are also excluded from our segment measures used internally to evaluate segment performance because management does not consider them particularly relevant or useful in evaluating the operating performance of our business segments.

Quarterly Reconciliation	4Q07						3Q07						4Q06(e)
	After-tax			EPS			After-tax			EPS			After-tax		EPS
Net income - GAAP		$  520			$.45			$  640			$  .56		$1,625	(a)	$2.27	(a)
Discontinued operations income (loss)		-			-			(2	)		-		1,198	(a)	1.68	(a)
Extraordinary loss-TRFC		180			.16			-			-		-		-
Continuing operations before extraordinary item		700			.61			642			.56		427		.60	(d)
Non-operating item-net gain(b)		-			-			(15	)		(.01	)	-		-
Merger and integration (M&I) costs		69			.06			126			.11		12		.02
Continuing operations before extraordinary item, non-operating items and M&I costs(c)		769			.67			753			.66		439		.61	(d)
CDO write-down		118			.10			-			-		-		-
Continuing operations before extraordinary item, non-operating items, M&I costs and CDO write-down		$  887			$.77			$  753			$  .66		$   439		$   .61
Year-to-date reconciliation	YTD 2007(e)						YTD 2006(e)
	After-tax			EPS			After-tax			EPS
Net income - GAAP	$	2,039		$	2.18		$	2,847	(a)	$	3.94	(a)
Discontinued operations income (loss)		(8	)		(.01	)		1,371	(a)		1.90	(a)
Extraordinary loss-TRFC		180			.19			-			-
Continuing operations before extraordinary item		2,227			2.38			1,476			2.04
Non-operating items-net gain(b)		(15	)		(.02	)		-			-
Merger and integration (M&I) costs		238			.25			72			.10
Continuing operations before extraordinary item, non-operating items and M&I costs(c)		2,450			2.62	(d)		1,548			2.14
CDO write-down		118			_.13			-			-
Continuing operations before extraordinary item, non-operating items, M&I costs and CDO write-down	$	2,568		$	2.74	(d)	$	1,548		$	2.14

(a) Revised, see “Revision of prior period financial statements” below.

(b) Non-operating items are detailed in the table on page 20.

(c) Excluding intangible amortization, earnings per share was 74 cents, 73 cents, 65 cents, and $2.83 and $2.22 for the fourth quarter of 2007, third quarter of 2007, fourth quarter of 2006, full-year 2007, and full-year 2006, respectively.

(d) Amounts do not foot due to rounding.

(e) Year-to-date 2007 results include six months of the combined Company’s results. Results for 2006 include legacy The Bank of New York only.

Revision of Prior Period Financial Statements

As previously reported, net income for 2006 and retained earnings at Dec. 31, 2006 reflect a non-cash charge to discontinued operations income taxes and a reduction to goodwill of $164 million, correcting the information originally reported.

Page - 21

The Bank of New York Mellon 4Q07 Quarterly Earnings Summary

SUPPLEMENTAL INFORMATION – TREND OF EARNINGS PER SHARE ON A GAAP AND NON-GAAP BASIS

In the merger transaction between The Bank of New York and Mellon, The Bank of New York shareholders received .9434 shares of The Bank of New York Mellon common stock for each share of The Bank of New York common stock outstanding on the closing date of the merger. Mellon shareholders received one share of The Bank of New York Mellon common stock for each share of Mellon common stock outstanding on the closing date of the merger. Historical earnings per share for The Bank of New York are presented in post-merger share count terms in this Quarterly Earnings Summary and the Earnings Release. The table below converts earnings per share for The Bank of New York into post-merger share count terms, for periods prior to July 1, 2007. See page 21 for a discussion of use of supplemental non-GAAP information.

Continuing operations before	Legacy The Bank
before extraordinary (loss) -	of New York Only(a)
fully diluted earnings per share	Quarter ended						Year ended(a)
	Dec. 31, 2006	March 31, 2007	June 30, 2007	Sept. 30, 2007		Dec. 31, 2007	Dec. 31, 2007	Dec. 31, 2006
As reported	$ .56	$.57	$.59	$ .56		$ .61	$ 2.38	$1.93
As reported adjusted for exchange ratio (GAAP)	.60	.61	.62	.56		.61	2.38	2.04
Non-GAAP adjusted - excluding merger and integration expense and non-operating items:
As reported	.58	.59	.63	.66	(b)	.67	2.62	2.02
Adjusted for exchange ratio	.61	.62	.66	.66	(b)	.67	2.62	2.14
Non-GAAP adjusted - excluding merger and integration expense, non-operating items and intangible amortization:
As reported	.61	.61	.65	.73	(c)	.74	2.83	2.09
Adjusted for exchange ratio	.65	.65	.69	.73	(c)	.74	2.83	2.22

(a) Year-to-date 2007 includes six months of the combined Company’s results. Amounts prior to July 1, 2007, represent legacy The Bank of New York only.

(b) Including the non-operating items described on page 20, non-GAAP adjusted earnings per share – excluding merger and integration expense - would have been 67 cents in the third quarter of 2007.

(c) Including the non-operating items described on page 20, non-GAAP adjusted earnings per share – excluding merger and integration expense and intangible amortization expense - would have been 74 cents in the third quarter of 2007.

Page - 22