The Bank of New York Mellon Corporation (BK) 8-K Barclays Global Financial Services Conference 2014

POWERING GLOBAL INVESTMENTS

September 9, 2014

Barclays Global Financial Services Conference 2014

Gerald Hassell

Chairman and Chief Executive Officer

Exhibit 99.1

Barclays Global Financial Services Conference 2014

Cautionary Statement

A

number

of

statements

in

our

presentations,

the

accompanying

slides

and

the

responses

to

your

questions

are

“forward-looking

statements.”

These

statements

relate

to,

among

other

things,

The

Bank

of

New

York

Mellon

Corporation’s

(the

“Corporation”)

expectations

regarding:

continued

growth

in

investment

management

and

investment

services

fees;

abatement

of

net

maturities

in

corporate

trust;

high

revenue

margin

fees;

relative

operating

margin

improvement;

upside

to

higher

short-term

interest

rates;

capital

plans

and

position;

the

benefits

of

a

combined

investment

management

and

investment

services

and

long-term

growth

potential;

run

rate

savings

of

continuous

process

improvements;

gain

and

savings

associated

with

the

sale

of

One

Wall

Street;

client

technology

solutions

and

business

excellence

plans;

positioning

for

earnings

growth

and

outperformance;

commitment

to

expense

reduction;

compliance

with

regulatory

requirements;

and

financial

flexibility;

and

statements

regarding

the

Corporation’s

aspirations,

as

well

as

the

Corporation’s

overall

plans,

strategies,

goals,

objectives,

expectations,

estimates,

intentions,

targets,

opportunities

and

initiatives.

These

forward-looking

statements

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

the

Corporation’s

control).

Actual

results

may

differ

materially

from

those

expressed

or

implied

as

a

result

of

the

factors

described

under

“Forward

Looking

Statements”

and

“Risk

Factors”

in

the

Corporation’s

Annual

Report

on

Form

10-K

for

the

year

ended

December

31,

2013

(the

“2013

Annual

Report”),

and

in

other

filings

of

the

Corporation

with

the

Securities

and

Exchange

Commission

(the

“SEC”).

Such

forward-looking

statements

speak

only

as

of

September

9,

2014,

and

the

Corporation

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.

Non-GAAP

Measures:

In

this

presentation

we

may

discuss

some

non-GAAP

adjusted

measures

in

detailing

the

Corporation’s

performance.

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.

Additional

disclosures

relating

to

non-GAAP

adjusted

measures

are

contained

in

the

Corporation’s

reports

filed

with

the

SEC,

including

the

2013

Annual

Report

and

our

Quarterly

Report

on

Form

10-Q

for

the

quarter

ended

June

30,

2014,

available

at

www.bnymellon.com/investorrelations.

1

Barclays Global Financial Services Conference 2014

Twin Engines of Growth

—

Investment Services

—

Investment Management

Largest global custodian with $28.5T in AUC/A

$1.6T

in

AUM

--

one

of

three

largest

Asset

Managers

owned

by

the

eight

U.S.

G-SIB

peers

Annuity Fee Revenue Stream

Fee revenue –

79% of total revenue

Growth

with

minimal

credit

risk

or

need

for

incremental

capital

Continuous Process of Expense Management

Staffing,

real

estate

footprint,

technology,

procurement

and corporate

services

High Payout while maintaining Strong Capital / High Ratings

Estimated Basel III Common Equity Tier 1 Ratio of 10%¹

Credit ratings ranked among highest in G-SIB peer group

2013

total

payout

ratio

of

83%

--

top

quartile

versus

CCAR

Banks

Positioned for earnings growth

Investing in organic growth

Continuing to aggressively manage costs

Poised to benefit as markets return to normal conditions

Investments Company for the World

Strategically Well Positioned for Outperformance

2

1

Fully

phased-in

advanced

approach at June 30, 2014.

This

represents

a

Non-GAAP

measure.

See

Appendix

for

reconciliation.

Additional

disclosure

regarding

this

measure

and

other

Non-GAAP

adjusted

measures

is

available

in

the

Corporation’s

reports

filed

with

the

SEC,

available

at

www.bnymellon.com.

Barclays Global Financial Services Conference 2014

The Investments Company for the World

Expertise Across the Investment Lifecycle

3

NOTE:  See additional disclosures in Appendix.

Barclays Global Financial Services Conference 2014

The Investments Company for the World

Global Market Leadership

Corporate

Trust

#1 Global corporate trust service provider

Treasury

Services

Top 5 in U.S.D. payments

Global Markets

Client-driven trading

Global Collateral

Services

Leveraging the breadth of Investment Services

* Consolidated revenue and pretax income include the Other segment. 

LTM =Last twelve months

Pretax

income

for

Investment

Services

and

Investment

Management

exclude

amortization

of

intangible

assets.

See

Appendix

for

revenue

and

pretax

income

reconciliation. 

Rankings

reflect

BNY

Mellon’s

size

in

the

markets

in

which

it

operates

and

are

based

on

internal

data

as

well

as

BNY

Mellon’s

knowledge

of

those

markets.

See

Appendix

for

additional

details

regarding

these

rankings.

Asset Servicing

Largest global custodian ranked by Assets

Under Custody / Administration

Alternative

Investment Services

#3 fund administrator

Broker-Dealer

Services

#1 (U.S.), growing globally

Pershing

#1 clearing firm U.S., U.K., Ireland, Australia

Depositary

Receipts

#1 in market share (~60%)

Asset

Management

Top 10 global asset manager

Consolidated

Revenue

of

~$14.8B

and

Pretax

Income

of

~$3.5B

–

LTM

6/30/14*

Investment Management

(46% non-U.S. revenue)

Investment Services

(36% non-U.S. revenue)

Wealth

Management

#7 U.S. wealth manager

Revenue: ~$10.0B

Pretax Income: ~$2.8B

Revenue: ~$4.0B

Pretax Income: ~$1.0B

4

Barclays Global Financial Services Conference 2014

Continued Fee Income Growth

5

Performance Drivers*

•

AUM, +40%

Performance Drivers*

•

Higher core Asset Servicing, Clearing Services and Treasury

Services fees:

1 Investment Management fees are Non-GAAP adjusted: excludes the impact of money market fee waivers.

2

Investment

Services

fees

are

Non-GAAP

adjusted:

excludes

Issuer

Services,

Securities

Lending

fees

and

the

impact

of

money

market

fee

waivers.

See

Appendix

for

reconciliation.

Additional

disclosure

regarding

these measures

and

other

Non-GAAP

adjusted

measures

is

available

in

the

Corporation’s

reports

filed

with

the

SEC,

available

at

www.bnymellon.com.

–

Net AUM inflows of $188B

–

Higher market values

–

AUC/A, + 18%

–

Continued new AUC/A wins

–

Growth in Global Collateral Services

–

Average long-term mutual funds assets,

+80%; global DARTs volume, +13%

–

Higher market values

–

Higher payment volumes

* Growth rates reflect growth between 12/31/10 and 6/30/14.

Barclays Global Financial Services Conference 2014

Although the Macro Environment Has Been Challenging…

6

Performance Drivers

1

High-margin revenue share represents high-margin revenue as a percentage of GAAP revenue, adjusted for one-time items.  High-margin revenue is Non-GAAP adjusted and consists of foreign

exchange revenue & other trading, net interest revenue, performance fees, securities lending fees, investment & other income, issuer services fees, net securities gains/losses, and adjusted for

one-time items. See Appendix for reconciliation.

Additional

disclosure

regarding

this

measure

and

other

Non-GAAP

adjusted

measures

is

available

in

the

Corporation’s

reports

filed

with

the

SEC,

available

at

www.bnymellon.com.

–

Lower Corporate Trust fees

–

Decline of structured debt markets

Continued maturities of high value

structured debt securitizations

Net maturities impact expected to abate in

15 to 21 months

Issuer Services

Net Interest Revenue and Money Market Fee Waivers

–

Impacted by market rates and narrower spreads

(NIR)

Foreign Exchange

–

Lower volumes and volatility

Securities Lending

–

Persistently low short-term interest rates and lower

volumes

Barclays Global Financial Services Conference 2014

…

Delivered Operating Margin Improvement

7

Performance Drivers

LTM operating margin improved  over 110 bps through both

revenue growth and expense actions

In 2Q14, expenses

1

declined 2% sequentially and 4%

year-over-year

We will continue aggressive, but prudent actions to drive

performance:

Rationalizing our staffing and automating processes;

$120MM severance charge taken in 2Q14 and over

$100MM in expected annual expense savings

Sale of One Wall Street resulted in $345MM pre-tax gain

and reduction of ~750,000 square feet in New York City

Consolidating custody and fund accounting platforms

Developing a common architecture and insourcing

application development to reduce costs

26 %

26 %

15 %

17 %

19 %

21 %

23 %

25 %

27 %

29 %

31 %

33 %

35 %

LTM -

6/30/13

LTM -

6/30/14

27 %

28 %

+112 bps

Core Margin²

Adj. Margin²

(excl. Fee Waiver Impact)

1

Total noninterest expense is Non-GAAP adjusted and excludes amortization of intangible assets, M&I, litigation and restructuring charges and the charge (recovery) related to investment management funds, net of incentives.

2

“Core”

denotes GAAP figures adjusted for: net securities gains (losses), accretion discount, FTE adj., intangible amortization, M&I, litigation & restructuring expense, provision for credit losses and other one-time items. “Adj.

Margin”

denotes Core margin figures adjusted for money market fee waivers associated revenue / expenses.

See

Appendix

for

reconciliations.

Additional

disclosure

regarding

these

measures

and

other

Non-GAAP

adjusted

measures

is

available

in

the

Corporation’s

reports

filed

with

the

SEC,

available

at

www.bnymellon.com.

Barclays Global Financial Services Conference 2014

Significant Further Upside to Higher Short-Term Interest Rates

1 Assumes no change in client behavior.

8

($ millions)

2 Both short-term and long-term rates move in four equal quarterly increments.  See Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, 

available at www.bnymellon.com/investorrelations.

* Represents the pretax income impact from money market fee waivers; includes an estimated impact to related compensation expense.

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2011

2012

2013

LTM-6/30/14

Net Interest Revenue (NIR)

0.80%

1.00%

1.20%

1.40%

1.60%

-$500

-$300

-$100

2009

2010

2011

2012

2013

LTM

-

6/30/14

0%

20%

40%

60%

80%

100%

0

25

50

75

100

~70% of fee waivers

(pretax) recovered if

rates rise by 50 bps ¹

Rapid Recovery of Fee Waivers

With Rising Short-Term Interest Rates

Increase in Interest Rates (bps)

$364

$426

$200

$300

$400

$500

+100 bps

+200 bps

Net Interest Revenue (NIR)

Money Market Fee Waivers *

Pretax Trend

Continued Pressure

on NIR / NIM

Net Interest Revenue Sensitivity

Parallel Rate Ramp

Versus Baseline²

($172)

($204)

($53)

($243)

($94)

($38)

($259)

($321)

($108)

($351)

($125)

($81)

Net Interest Margin (NIM)

Investment Services

Investment Management

Net Interest

Revenue (FTE)

Net Interest

Margin

Opportunity for

Significant Upside

1.36%

1.21%

1.13%

1.07%

$3,028

$3,072

$3,048

$3,011

Barclays Global Financial Services Conference 2014

Strong Capital Position and

Capital Return

9

BNY Mellon’s Common

Shares Outstanding

Below

Pre-Crisis Level

Top Shareholder Return of

Capital Under 2014 CCAR

Common Share Count Change Since Pre-

Crisis²

2014 CCAR Total Payout¹

SOURCE: Federal Reserve –

Dodd-Frank Act Stress Test (DFAST) 2014: Supervisory Stress Test Methodology and Results; payout as a percentage of 2014E IBES Net Income as of 3/26/14,

repurchases

net

of

equity

due

to

employee

compensation

with

2014

amount

assumed

to

be

equal

to

2013

amount.

1 Information

regarding

our

peers’

payout

ratios

is

derived

from

their

public

filings.

2 Represents

G-SIBs:

Pre-crisis

defined

as

of

9/30/07,

share

count

as

of

6/30/07

in

cases

where

data

undisclosed

as

of

9/30/07;

current

data

as

of

9/3/14;

SNL

Financial

(share

count

data). 

Barclays Global Financial Services Conference 2014

28%

38%

24%

19%

19%

34%

25%

18%

31%

29%

28%

26%

23%

26%

32%

14%

15%

61%

49%

61%

63%

63%

46%

50%

55%

38%

40%

34%

24%

89%

87%

84%

82%

81%

80%

75%

73%

69%

68%

62%

50%

49%

48%

32%

14%

15%

3%

3%

BK

NTRS

STT

AXP

DFS

WFC

KEY

COF

USB

FITB

PNC

STI

RF

JPM

BBT

GS

MS

C

BAC

(100.0)%

0.0 %

100.0 %

200.0 %

300.0 %

400.0 %

500.0 %

600.0 %

RBS

C

UniCredit

DB

BARC

BAC

Mizuho

Santander

UBS

MS

SocGen

Sumitomo

STAN

HSBA

BBVA

ACA

WFC

NDA SEK

CSGN

BNP

Mitsubishi

JPM

STT

BoC

ICBC

GS

BK

910%

2014 Dividend Payout

2014 Share Repurchases

Barclays Global Financial Services Conference 2014

Investment Management –

Diverse AUM and Fee Mix

Multi-Boutique Model

& Wealth Management

* Minority ownership or joint venture.  See additional Investment Management disclosures in Appendix.

NEWTON

CASH

INVESTMENT

STRATEGIES

SIGULER

GUFF*

MELLON

CAPITAL

THE

BOSTON

COMPANY

CENTER-

SQUARE

STANDISH

EACM

HAMON*

INSIGHT

ALCENTRA

WALTER

SCOTT

ARX

MERITEN

10

ASSETS UNDER MANAGEMENT

1

$1.6 trillion (6/30/2014)

CASH

ACTIVE FIXED

INCOME

ACTIVE EQUITY

ALTERNATIVES

INDEX

$282B

$66B

$275B

17%

14%

4%

17%

21%

LIABILITY-DRIVEN

INVESTMENTS

$436B

27%

$224B

$353B

1 LDI AUM includes Overlay assets.

2 Fee

revenue

is

calculated

as

follows:

Total

2Q14

Investment

management

fees,

distribution

fees

and

transfer

fees,

net

of

distribution

expense,

annualized.  See Appendix for fee revenue reconciliation. Additional disclosure regarding this measure and other Non-GAAP adjusted measures

is available in the Corporation’s reports filed with the SEC, available at www.bnymellon.com.

49%

5%

4%

9%

20%

13%

FEE REVENUE (Non-GAAP)

2

$3.1 billion

Barclays Global Financial Services Conference 2014

Investment Management –

Strong Margins

11

NOTE:   Pre-tax margins adjusted to exclude amortization expense with revenues net of distribution expense, and non-recurring items where applicable. Average excludes BNY Mellon.

¹

Adjusted to exclude fee waivers for BNY Mellon and all peers, where applicable and disclosed.

* Information

regarding

our

peers

is

derived

from

their

public

filings

and

may

not

be

directly

comparable

to

BNY

Mellon’s

calculations.

Strong Investment Management margin on par with peers

Taking into account AUM mix, BNY Mellon’s performance is above the

line

Barclays Global Financial Services Conference 2014

21 %

30 %

30 %

32 %

32 %

35 %

37 %

49 %

24 %

24 %

32 %

34%

36 %

41 %

42 %

49 %

GSAM

AB

LM

JPM AM

SSGA

JNS

BNYM

AMG

IVZ

BEN

BLK

EV

TROW

2013 Avg. P-T Mgn: 33%

0.0 %

10.0 %

20.0 %

30.0 %

40.0 %

50.0 %

60.0 %

0.0 %

20.0 %

40.0 %

60.0 %

80.0 %

100.0 %

Equity and Other as % AuM

T. Rowe Price

Legg

Mason

AllianceBernstein

Affiliated Managers

JPMorgan AM

State Street

Eaton Vance

BNY Mellon¹

GSAM

Janus

Invesco

Franklin Resources

BlackRock

2013 AUM Mix vs. Pre-Tax Margin¹

Barclays Global Financial Services Conference 2014

Investment Management & Investment Services

Combined Platform Continues to Drive Performance

Investment Management

Central to BNY Mellon’s Franchise

Asset Flows

Enhanced by BNY Mellon’s Platform

Acquisitions Thriving

Under BNY Mellon’s Ownership

•

Highly successful contributor to

earnings

•

Minimal balance sheet usage

•

Positive to BNY Mellon’s credit

ratings and stress test performance

•

Corporate brand and excellent

credit ratings are attractive to large,

sophisticated investors

•

Strong long-term growth potential

•

Liability-Driven Investments (LDI)

•

Index and money market products

12

NOTE: Represents estimated internal rate of return of

large acquisitions (>$100MM), since acquisition

through 12/31/13.

Internal Rate of Return

•

Successfully leveraging BNY Mellon’s

capabilities

–

Strong financial position of Holding

Company parent is attractive to client

base

–

Attractive cross-selling opportunities for

Investment Services’

clients

Barclays Global Financial Services Conference 2014

Continuing to Strengthen Our Franchise

13

Organizational Realignment

Curtis Arledge

•

CEO Investment Management

Brian Shea

•

Head of Client Service Delivery and Client Technology Solutions

Enhancing Our Board

Jeffrey Goldstein

(April 2014)

•

Significant finance, banking, government, economics, global markets and

corporate strategy experience

John Hinshaw

(Sep. 2014)

•

Proven technology leader having served in progressively more complex,

global technology roles across several different industries

New Role

•

Markets Group

•

CEO Investment Services

–

Global Markets

–

Global Collateral Services

–

Prime Services

Strong Shareholder Returns

14

YTD –

9/5/2014

2012 Total Shareholder Return

2013 Total Shareholder Return

NOTE: G-SIB Peer Group includes: HSBC, JPM, BARC, BNP, C, DBK, BAC, CSGN, GS, ACA, MTU, MS, RBS, UBS, Bank of China, BBVA, ICBC, MFG, NDA, SAN, GLE, STAN,

STT, SMFG, UCG, WFC.

Proxy Peers include:  BLK, SCHW, BEN, JPM, MS, NTRS, PNC, PRU, STT, USB, WFC.

Performance (%)

YTD

BNY Mellon

15 %

Trust Peers Average

7 

Proxy Peer Median

7

S&P 500

10 

G-SIB Peer Group

3

Barclays Global Financial Services Conference 2014

Barclays Global Financial Services Conference 2014

Twin Engines of Growth

—

Investment Services

—

Investment Management

Largest global custodian with $28.5T in AUC/A

$1.6T in AUM --

one of three largest Asset Managers owned by

the eight U.S. G-SIB peers

Annuity Fee Revenue Stream

Fee revenue –

79% of total revenue

Growth with minimal credit risk or need for incremental capital

Continuous Process of Expense Management

Staffing, real estate footprint, technology, procurement and corporate

services

High Payout while maintaining Strong Capital / High Ratings

Estimated Basel III Common Equity Tier 1 Ratio of 10%

Credit ratings ranked among highest in G-SIB peer group

2013 total payout ratio of 83% --

top quartile versus CCAR Banks

Positioned for earnings growth

Investing in organic growth

Continuing to aggressively manage costs

Poised to benefit as markets return to normal conditions

Investments Company for the World

Strategically Well Positioned for Outperformance

15

1 Fully phased-in advanced approach at June 30, 2014.  This represents a Non-GAAP measure.  See Appendix for reconciliation.

Additional

disclosure

regarding

this

measure

and

other

Non-GAAP

adjusted

measures

is

available

in

the

Corporation’s

reports

filed

with

the

SEC,

available

at

www.bnymellon.com.

1

APPENDIX

Barclays Global Financial Services Conference 2014

Reconciliation Schedule

Business -

Revenue and Pretax Income

* Consolidated

totals

include

the

Other

segment.

Pretax

metrics

for

Investment

Services

and

Investment

Management

exclude

the

impact

of

intangible

amortization.

INVESTMENT SERVICES

INVESTMENT MANAGEMENT

CONSOLIDATED TOTAL

INVESTMENT SERVICES

REVENUE

$ MILLION

INVESTMENT MANAGEMENT

CONSOLIDATED TOTAL

2,568

949

803

3Q13

$3,783

260

$1,002

PRETAX INCOME

$ MILLION

2,470

1,061

648

4Q13

$3,611

301

$728

2,477

970

699

1Q14

$3,647

277

$926

2,513

1,036

689

4Q14

$3,745

202

$811

2,839

1,040

$3,467

10,028

4,016

LTM

6/3014

$14,786

18

Barclays Global Financial Services Conference 2014

Reconciliation Schedule

Investment Management & Performance Fees / Investment Services Fees (Adj.)

($millions)

Investment Management & Performance Fees

2011

2013

LTM 6/30/13

LTM 6/3014

Investment management and performance fees

$2,998

$3,385

$3,281

$3,449

(+)  Investment management money market fee waivers

225

276

221

309

Total

$3,223

$3,661

$3,502

$3,758

($millions)

Investment Services Fees (Adj.)

2011

2013

LTM 6/30/13

LTM 6/3014

Investment services fees

$6,499

$6,689

$6,523

$6,719

(-) Issuer services fees

1,252

1,087

1,053

1,016

(-) Securities lending revenue

146

117

138

112

(+)  Investment services money market fee waivers

203

292

239

321

Total

$5,304

$5,777

$5,571

$5,912

19

Barclays Global Financial Services Conference 2014

Reconciliation Schedule

High Margin Revenue as a Percent of Total Revenue

($millions)

High Margin Revenue as a Percent of Total Revenue

2011

2013

LTM 6/30/13

LTM 6/3014

Total Revenue  -

Adjusted

$14,798

$15,039

$14,791

$14,961

Foreign exchange & other trading

848

674

690

571

Net interest revenue (non-FTE)

2,984

3,009

2,950

2,980

Performance fees

93

130

115

130

Securities lending fees

183

155

179

150

Investment & other income

524

482

642

353

Issuer services fees

1,446

1,090

1,056

1,019

Securities gains/(losses)

48

141

152

101

Gain (loss) related to an equity investment (pre-tax)

-

(9)

(184)

175

Total High-Margin Revenue*

$6,124

$5,671

$5,599

$5,479

% of Total Revenue -

Adjusted

41%

38%

38%

37%

*Total High-Margin Revenue may not sum due to rounding

20

Barclays Global Financial Services Conference 2014

Reconciliation Schedule

Operating Margin

($millions)

LTM 6/30/13

LTM 6/30/14

Total Revenue -

GAAP

$14,975

$14,786

Net securities gains(losses)

(152)

(100)

Loss (gain) on equity investments & asset sales

(184)

175

Accretable discount

(237)

(194)

Earnings attributable to non-controlling Interest

(92)

(62)

FTE adjustment

59

68

Core Revenue

$14,369

$14,673

Fee Waiver Revenue

532

677

Adjusted Core Revenue

$14,900

$15,350

Total Expense –

GAAP

$11,180

$11,341

Amortization of intangible assets

(370)

(313)

M&I, litigation & restructuring

(124)

(128)

Admin error charge (recovery)

(28)

(104)

Core Expense

$10,658

$10,796

Fee waiver expense

184

200

Adjusted Core Expense

$10,842

$10,996

Core Pre-Tax Income

$3,711

$3,877

Core Pre-Tax Margin

26%

26%

Adjusted Core Pre-Tax Income

$4,059

$4,354

Adjusted Core Pre-Tax Margin

27%

28%

*Figures may not foot due to rounding

21

Barclays Global Financial Services Conference 2014

Reconciliation Schedule

Net Interest Margin (LTM-6/30/14)

22

Net Interest Margin (FTE)   ($millions)

3Q13

4Q13

1Q14

2Q14

2Q14 LTM

Net Interest  Revenue (FTE)

$787

$781

$744

$736

$3,048

Average Interest-earning Assets

$285,519

FTE -

fully taxable equivalent

Net Interest Margin (FTE)           1.07%

Barclays Global Financial Services Conference 2014

Investment Management Fee Revenue Reconciliation

Reconciliation Schedule

23

INVESTMENT MANAGEMENT FEES

(EXCLUDING PERFORMANCE FEES)

DISTRIBUTION AND SERVICING FEES

DISTRIBUTION AND SERVICING EXPENSE

SUBTOTAL

$ MILLION

$852

$41

$782

2Q14

(111)

TOTAL (ANNUALIZED)

X4

$3,128

Barclays Global Financial Services Conference 2014

Reconciliation Schedule

Investment Management Operating Margin

24

Pre-tax Operating Margin –

Investment Management   ($millions)

1Q13

2Q13

3Q13

4Q13

FY 2013

Income before taxes –

GAAP

$206

$271

$225

$266

$968

Add:  Amortization of intangible assets

39

39

35

35

148

Add:  Money market fee waiver

21

24

30

33

108

Add:  Charge (recovery) related to investment management funds

39

(27)

12

Income before taxes excluding amortization of intangibles assets, money

market fee waivers and the charge (recovery) related investment

management funds –

Non-GAAP

$305

$307

$290

$334

$1,236

Total Revenue -

GAAP

$943

$975

$949

$1,061

$3,928

Less:  Distribution and servicing expense

104

110

107

108

429

Less:  Money market fee waivers benefiting distribution and

servicing expense

36

35

38

38

147

Add:  Money market fee waivers impacting total revenue

57

59

68

71

255

Total revenue net of distribution and servicing expense and excluding

money market fee waivers –

Non-GAAP

$860

$889

$872

$986

$3,607

Pre-tax operating margin excluding amortization of intangibles assets,

money market fee waivers and the charge (recovery) related to investment

management

funds,

and

net

of

distribution

and

servicing

expense

–

Non-GAAP¹

34%

1

Income before taxes divided by total revenue.

Barclays Global Financial Services Conference 2014

Reconciliation Schedule

Operating Expenses

1

Represents

a

non-GAAP

adjusted

measure.

Additional

disclosure

regarding

this

and

other

non-GAAP

adjusted

measures

is

available

in

the

Corporation’s

reports

filed

with

the

SEC,

including

our

Form

10-Q

for

the

quarter

ended

June

30,

2014,

available

at

www.bnymellon.com/investorrelations.

Noninterest Expense   ($millions)

2Q14

1Q14

2Q13

Total noninterest expense –

GAAP

$2,946

$2,739

$2,822

Amortization of intangible assets

(75)

(75)

(93)

M&I, litigation and restructuring charges

(122)

12

(13)

Charge

(recovery)

related

to

investment

management

funds,

net

of

incentives

and

severance expense

(109)

5  

27

Adjusted Noninterest Expense

1

$2,640

$2,681

$2,743

Adjusted Noninterest Expense                  (2)              

(4)

25

Barclays Global Financial Services Conference 2014

Reconciliation Schedule

Estimated Common Equity Tier 1 Ratio, Fully Phased-in 

($millions)

Basel III Capital Components and Ratios at June 30, 2014

Fully phased-in

Basel III

Common Equity

$36,764

Goodwill and Intangible Assets

(19,925)

Net Pension Fund Assets

(106)

Equity Method Investments

(430)

Deferred Tax Assets

(17)

Other

(9)

Total Common Equity Tier 1

$16,277

Risk-weighted Assets –

Standardized Approach

$158,168

Risk-weighted Assets –

Advanced Approach

$162,072

Estimated Basel III CET1 ratio –

Standardized Approach (Non-GAAP)

1

10.3%

Estimated Basel III CET1 ratio –

Advanced Approach (Non-GAAP)

1

10.0%

1Represents a non-GAAP adjusted measure.  Additional disclosure regarding this measure and other non-GAAP adjusted measures are available in the Corporation’s reports filed with the SEC, including our Form 10-Q for

the quarter ended June 30, 2014, available at

www.bnymellon.com/investorrelations.

At June 30, 2014, the estimated fully phased-in Basel III CET1 ratios are based on our interpretation of the final rules released by the Board of Governors of the Federal Reserve System (the “Federal Reserve”) on July 2,

2013 (the “Final Capital Rules”), which are being gradually phased-in over a multiyear period. The estimated fully phased-in Basel III CET1 ratios assume all relevant regulatory model approvals. The Final Capital Rules

require approval by banking regulators of certain models used as

part of risk-weighted asset calculations. If these models are not approved, the estimated fully phased-in capital ratios would likely be adversely impacted.

See additional disclosures in our Form 10-Q for the quarter ended June 30, 2014, available at

www.bnymellon.com/investorrelations.

26

Barclays Global Financial Services Conference 2014

Dodd-Frank Act Stress Test –

Severely Adverse Scenario

Impact on Tier 1 Common Equity Ratio

Bank Holding Company

Ticker/

Identifier

Tier 1 Common Ratio (%)

Stress

Impact

Actual Q3 2013

Ending

Minimum

American Express Company

AXP

12.8

14.0

12.1

0.7

BNY Mellon

BK

14.1

16.1

13.1

1.0

BB&T Corporation

BBT

9.4

8.4

8.4

1.0

SunTrust Banks

STI

9.9

9.0

8.8

1.1

U.S. Bancorp

USB

9.3

8.3

8.2

1.1

PNC Financial Services Group

PNC

10.3

9.0

9.0

1.3

Northern Trust Corporation

NTRS

13.1

11.7

11.7

1.4

Discover Financial Services

DFS

14.7

13.7

13.2

1.5

Fifth Third Bancorp

FITB

9.9

8.4

8.4

1.5

Ally Financial

ALLY

7.9

6.3

6.3

1.6

KeyCorp

KEY

11.2

9.3

9.2

2.0

Regions Financial Corporation

RF

11.0

9.0

8.9

2.1

Comerica Incorporated

CMA

10.7

8.6

8.6

2.1

State Street Corporation

STT

15.5

14.7

13.3

2.2

Wells Fargo & Company

WFC

10.6

8.2

8.2

2.4

M&T Bank Corporation

MTB

9.1

6.2

6.2

2.9

UnionBanCal Corporation

UNB

11.1

8.1

8.1

3.0

BBVA  Compass Bancshares

BBVA

11.6

8.5

8.5

3.1

RBS Citizens Financial Group

RBS

13.9

10.7

10.7

3.2

BMO Financial Corp.

BMO

10.8

7.6

7.6

3.2

Huntington Bancshares Incorporated

HBAN

10.9

7.4

7.4

3.5

JPMorgan Chase & Co.

JPM

10.5

6.7

6.3

4.2

Capital One Financial Corporation

COF

12.7

7.8

7.8

4.9

Bank of America Corporation

BAC

11.1

6.0

5.9

5.2

Citigroup

C

12.7

7.2

7.2

5.5

Santander Holdings USA

SC

13.7

7.3

7.3

6.4

Morgan Stanley

MS

12.6

7.6

6.1

6.5

Zions Bancorporation

ZB

10.5

3.6

3.6

6.9

Goldman Sachs Group

GS

14.2

9.2

6.9

7.3

HSBC North America Holdings

HSBC

14.7

6.6

6.6

8.1

SOURCE:  

Federal Reserve –

Dodd-Frank Act Stress

Test  (DFAST) 2014: Supervisory Stress

Test Methodology and Results

27

Barclays Global Financial Services Conference 2014

Disclosures

All statistics are global and represent the minimum number of BNY Mellon client relationships in each category.

•

Fortune 500 (as of 12/31/13)

•

Central Banks (as of June 2013)

•

Pensions & EB Funds (as of 2/26/14)

•

Endowments (as of 2/26/14)

•

Life & Health Insurance Companies (as of 2/26/14)

•

QS World Universities Top 50 (of 400 listed) (as of 12/31/2013)

28

// Fortune magazine, May 2013; Global 500 data

// CIA World Factbook, IMF, annual reports

// Reprinted with permission of Pensions & Investments, Copyright 2013 // Metric is Plan Assets, Millions (converted in thousands)

// Reprinted with permission of NACUBO, Copyright 2013 // Metric

is Total Market Value of Endowments, in thousands, as of FYE 2011

// Data source used by P&I Magazine

// Reprinted with permission of A.M. Best Company, Inc., Copyright 2013 // Metric is 2012 Total Admitted Assets, in thousands

// www.topuniversities.com/university-rankings/world-university-rankings/2013

Barclays Global Financial Services Conference 2014

Asset Servicing:

Largest global custodian ranked by

Assets Under Custody and / or Administration

Source:

Globalcustody.net,

2013,

data

as

of

June

30,

2013

or

as

otherwise

noted

by

relevant

ranked

entity.

Broker-Dealer Services:  #1 (U.S.), growing globally

Leading provider of U.S. Government Securities clearance services

Source:

Federal

Reserve

Bank

of

New

York

-

Fedwire

Securities

High

Volume

Customer

Report,

March

2013

Alternative Investment Services:  #3 fund administrator

Based on single manager funds and funds of hedge fund assets under administration

combined.

Source:

HFMWeek

20th

Biannual

AuA

Survey

-

June

2013

Corporate Trust:  #1 Global Corporate Trust Service Provider

Source:

Thomson Reuters and Dealogic, first quarter, 2013

Depositary Receipts:

#1 in market share (~60%)

Leader in sponsored global depositary receipts programs

Source: BNY Mellon.

Data as of December 31, 2013

Pershing:  #1 U.S. clearing firm

Pershing LLC., ranked by number of broker-dealer customers

Source: Investment News, 2012

Treasury Services:

Top 5 in USD payments

Fifth largest participant in CHIPS funds transfer volume

Fifth largest Fedwire payment processor

Source:

CHIPS

High

Volume

Customer

Report,

June

2013

and

Fedwire

High

Volume

Customer Report, June 2013

Asset Management

Eighth largest global asset manager

Source: Pensions & Investments, November 2013

Wealth Management

Seventh largest U.S. wealth manager

Source: Barron’s, Sept 2013

Disclosures

29

Barclays Global Financial Services Conference 2014

Disclosures

BNY

Mellon

Investment

Management

is

one

of

the

world’s

leading

investment

management

organizations

and

one

of

the

top

U.S.

wealth

managers,

encompassing

BNY

Mellon’s

affiliated

investment

management

firms,

wealth

management

organization

and

global

distribution

companies.

BNY

Mellon

is

the

corporate

brand

of

The

Bank

of

New

York

Mellon

Corporation

and

may

also

be

used

as

a

generic

term

to

reference

the

Corporation

as

a

whole

or

its

various

subsidiaries

generally.

Products

and

services

may

be

provided

under

various

brand

names

and

in

various

countries

by

subsidiaries,

affiliates

and

joint

ventures

of

The

Bank

of

New

York

Mellon

Corporation

where

authorized

and

regulated

as

required

within

each

jurisdiction.

Products

or

services

described

herein

are

provided

by

BNY

Mellon,

its

subsidiaries,

affiliates

or

related

companies

and

may

be

provided

in

various

countries

by

one

or

more

of

these

companies

where

authorized

and

regulated

as

required

within

each

jurisdiction.

Certain

investment

vehicles

may

only

be

offered

through

regulated

entities

or

licensed

individuals,

such

as

a

bank,

a

broker-dealer

or

an

insurance

company.

However,

this

material

is

not

intended,

nor

should

be

construed,

as

an

offer

or

solicitation

of

services

or

products

or

an

endorsement

thereof

in

any

jurisdiction

or

in

any

circumstance

that

is

otherwise

unlawful

or

unauthorized.

The

investment

products

and

services

mentioned

here

are

not

insured

by

the

FDIC

(or

any other state or federal agency), are not deposits of or guaranteed by any bank, and may lose value.

This

material

is

not

intended

as

an

offer

to

sell

or

a

solicitation

of

an

offer

to

buy

any

security,

and

it

is

not

provided

as

a

sales

or

advertising

communication

and

does

not

constitute

investment

advice.

MBSC

Securities

Corporation,

a

registered

broker-dealer,

FINRA

member

and

wholly

owned

subsidiary

of

BNY

Mellon,

has

entered

into

agreements

to

offer

securities

in the U.S. on behalf of certain BNY Mellon Investment Management firms.

Securities

in

Canada

are

offered

through

BNY

Mellon

Asset

Management

Canada

Ltd.,

registered

as

a

Portfolio

Manager

and

Exempt

Market

Dealer

in

all

provinces

and

territories

of

Canada, and as an Investment Fund Manager and Commodity Trading Manager in Ontario.

The

value

of

investments

and

the

income

from

them

is

not

guaranteed

and

can

fall

as

well

as

rise

due

to

stock

market

and

currency

movements.

When

you

sell

your

investment

you

may

get back less than you originally invested.

Rankings include assets managed by BNY Mellon’s investment boutiques and BNY Mellon Wealth Management. Each ranking may not include the same mix of firms.

Unless

otherwise

noted,

all

references

to

assets

under

management

(which

are

approximate)

are

as

of

6/30/14.

Assets

under

management

(AUM)

/

overlay

under

management

(OUM)

for

The

Boston

Company

Asset

Management,

EACM

Advisors,

Mellon

Capital

Management

Corporation

and

Standish

Mellon

Asset

Management

Company

LLC

includes

assets

managed

by

those

individual

firms’

officers

as

associated

persons,

dual

officers

or

employees

of

The

Dreyfus

Corporation.

In

addition,

AUM/OUM

for

the

following

firms

includes

assets

managed

by

them

as

non-discretionary

investment

manager

for,

or

by

the

individual

firms’

officers

as

dual

officers

or

employees

of,

The

Bank

of

New

York

Mellon:

The

Dreyfus

Corporation

and

its

BNY

Mellon

Cash

Investment

Strategies

division,

The

Boston

Company

Asset

Management,

LLC,

CenterSquare

Investment

Management,

Inc,

Mellon

Capital

Management Corporation, Newton Capital Management Limited (part of The Newton Group) and Standish Mellon Asset Management Company LLC.

Alcentra

Limited,

Insight

Investment

Management

Limited,

Newton

Capital

Management

Limited,

Newton

Investment

Management

Limited

and

Walter

Scott

&

Partners

Limited

are

authorized

and

regulated

by

the

Financial

Conduct

Authority.

The

registered

address

for

Alcentra

Limited

is

10

Gresham

Street,

London,

EC2V7JD,

England.

The

registered

address

for

Insight

Investment

and

Newton

is

BNY

Mellon

Centre,

160

Queen

Victoria

Street,

London,

EC4V

4LA,

England.

The

registered

address

for

Walter

Scott

is

One

Charlotte

Square,

Edinburgh, EH2 4DR, Scotland. 

The Alcentra Group refers to the affiliated companies Alcentra, Ltd and Alcentra NY, LLC. AUM includes assets managed by both companies.

BNY

Mellon

Cash

Investment

Strategies

(CIS)

is

a

division

of

The

Dreyfus

Corporation.

Important Information

30

Barclays Global Financial Services Conference 2014

Disclosures

BNY Mellon Investment Strategy & Solutions Group (“ISSG”) is part of The Bank of New York Mellon (“Bank”).  In the US, ISSG offers products and services through

the Bank, including investment strategies that are developed by affiliated BNY Mellon Investment Management advisory firms and managed by officers of such

affiliated firms acting in their capacities as dual officers of the Bank.

Insight Investment Management Limited and Meriten Investment Management GmbH do not offer services in the U.S.  This presentation does not constitute an offer to

sell, or a solicitation of an offer to purchase, any of the firms’

services or funds to any U.S. investor, or where otherwise unlawful.

BNY Mellon owns 90% of The Boston Company Asset Management, LLC and the remainder is owned by employees of the firm.

BNY Mellon owns a 19.9% minority interest in The Hamon Investment Group Pte Limited, the parent company of Blackfriars Asset Management Limited and Hamon

Asian Advisors Limited which both offer investment services in the U.S.

Insight investment's assets under management are represented by the value of cash securities and other economic exposure managed

for clients. Services offered in

the U.S., Canada and Australia by Pareto Investment Management Limited under the Insight Pareto brand.

Mellon Capital Management Corporation AUM includes $4.6 billion in overlay strategies.

Meriten Investment Management GmbH does not offer services in the U.S It was formerly known as WestLB Mellon Asset Management KAG mbH.

The Newton Group (“Newton”) is comprised of the following affiliated companies: Newton Investment Management Limited, Newton Capital Management Limited

(NCM Ltd) and Newton Capital Management LLC (NCM LLC). NCM LLC personnel are supervised persons of NCM Ltd and NCM LLC does not provide investment

advice, all of which is conducted by NCM Ltd. Only NCM LLC and NCM Ltd offer services in the U.S. AUM for the Newton Group include assets managed by all of

these companies (except NCM LLC). In addition, AUM for the Firm may include assets managed by the firm's officers as dual officers or employees of The Bank of

New York Mellon and assets of wrap fee account(s) and high net worth client model(s) for which Newton Capital Management Limited

provides advice in the form of

non-discretionary model portfolios.

BNY Mellon owns a 20% interest in Siguler Guff & Company, LP and

certain related entities (including Siguler Guff Advisers, LLC).

31

Securities

transactions

are

effected,

where

required,

only

through

registered

broker-dealers.

Pershing

is

the

umbrella

name

for

Pershing

LLC

(member

FINRA,

SIPC

and

NYSE),

Pershing

Advisor

Solutions

(member

FINRA

and

SIPC),

Pershing

Prime

Services

(a

service

of

Pershing

LLC),

Pershing

Limited

(UK),

Pershing

Securities

Limited,

Pershing

Securities

International

Limited

(Ireland),

Pershing

(Channel

Islands)

Limited,

Pershing

Securities

Canada

Limited,

Pershing

Securities

Singapore

Private

Limited

and

Pershing

Securities

Australia

Pty.

Ltd.

SIPC

protects

securities

in

customer

accounts

of

its

members

up

to

$500,000

in

securities

(including

$250,000

for

claims

for

cash).

Explanatory

brochure

available

upon

request

or

at

www.sipc.org.

SIPC

does

not

protect

against

loss

due

to

market

fluctuation.

SIPC

protection

is

not

the

same

as,

and

should

not

be

confused

with,

FDIC

insurance.

Investment

products

(other

than

deposit

products)

referenced

in

this

brochure

(including

money

market

funds)

are

not

insured

by

the

FDIC

(or

any

other

state

or

federal

agency),

are

not

deposits

of

or

guaranteed

by

BNY

Mellon

or

any

bank

or

non-bank

subsidiary

thereof,

and

are

subject

to

investment

risk,

including

the

loss

of

principal

amount

invested.