The Bank of New York Mellon Corporation (BK) 8-K Results of Operations and Financial Condition

The Bank of New York Mellon Corporation

Quarterly Financial Trends

January 21, 2016

Table of Contents
Consolidated Results	Page(s)
Consolidated Corporate Earnings - Quarterly Trend	3
Fee and Other Revenue	4
Average Balances and Interest Rates	5-6
Noninterest Expense	7
Assets Under Management, Custody and/or Administration and Securities Lending; Key Market Metrics	8
Assets Under Management Net Flows	9
Business Segment Results
Investment Management Business - Quarterly Trend	10
Investment Services Business - Quarterly Trend	11
Other Segment - Quarterly Trend	12
Full Year Trends	13
Nonperforming Assets	14
Allowance for Credit Losses, Provision and Net Charge-offs	15
Notes	16

THE BANK OF NEW YORK MELLON CORPORATION - CONSOLIDATED CORPORATE EARNINGS - 12 Quarter Trend

	2013												2014												2015
(dollar amounts in millions unless otherwise noted)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Revenue:
Investment services fees
Asset servicing	$	969		$	988		$	964		$	984		$	1,009		$	1,022		$	1,025		$	1,019		$	1,038		$	1,060		$	1,057		$	1,032
Issuer services	237			294			322			237			229			231			315			193			232			234			313			199
Clearing services	304			321			315			324			325			326			337			347			344			347			345			339
Treasury services	141			139			137			137			136			141			142			145			137			144			137			137
Total investment services fees	1,651			1,742			1,738			1,682			1,699			1,720			1,819			1,704			1,751			1,785			1,852			1,707
Investment management and performance fees (a)	822			848			821			904			843			883			881			885			867			878			829			864
Foreign exchange & other trading revenue	161			207			160			146			136			130			153			151			229			187			179			173
Distribution and servicing	49			45			43			43			43			43			44			43			41			39			41			41
Financing-related fees	41			44			44			43			38			44			44			43			40			58			71			51
Investment and other income (a)(b)	88			285			151			(43		)	102			142			890			78			60			104			59			93
Total fee revenue (a)(b)	2,812			3,171			2,957			2,775			2,861			2,962			3,831			2,904			2,988			3,051			3,031			2,929
Net securities gains (losses)	48			32			22			39			22			18			20			31			24			16			22			21
Total fee and other revenue (a)(b)	2,860			3,203			2,979			2,814			2,883			2,980			3,851			2,935			3,012			3,067			3,053			2,950
Income (loss) of consolidated investment management funds (a)	50			65			32			36			36			46			39			42			52			40			(22		)	16
Net interest revenue	719			757			772			761			728			719			721			712			728			779			759			760
Total revenue (a)(b)	3,629			4,025			3,783			3,611			3,647			3,745			4,611			3,689			3,792			3,886			3,790			3,726
Provision for credit losses	(24		)	(19		)	2			6			(18		)	(12		)	(19		)	1			2			(6		)	1			163
Noninterest expenses	2,703			2,716			2,682			2,793			2,676			2,749			2,673			2,651			2,637			2,603			2,603			2,610
Amortization of intangible assets	86			93			81			82			75			75			75			73			66			65			66			64
Merger & integration, litigation and restructuring charges	39			13			16			2			(12		)	122			220			800			(3		)	59			11			18
Total noninterest expense	2,828			2,822			2,779			2,877			2,739			2,946			2,968			3,524			2,700			2,727			2,680			2,692
Income (loss) from continuing operations before taxes (b)	825			1,222			1,002			728			926			811			1,662			164			1,090			1,165			1,109			871
Provision for income taxes (b)	1,062			339			19			172			232			217			556			(93		)	280			276			282			175
Net income (loss) from continuing operations (b)	(237		)	883			983			556			694			594			1,106			257			810			889			827			696
Net income (loss) attributable to noncontrolling interest (a)(c)	(16		)	(40		)	(8		)	(17		)	(20		)	(17		)	(23		)	(24		)	(31		)	(36		)	6			(3		)
Preferred stock dividends	(13		)	(12		)	(13		)	(26		)	(13		)	(23		)	(13		)	(24		)	(13		)	(23		)	(13		)	(56		)
Net income (loss) applicable to common shareholders of The Bank of New York Mellon Corporation (b)	(266		)	831			962			513			661			554			1,070			$	209		$	766		830			820			637
Earnings per share (b)(d)	$	(0.23	)	$	0.71		$	0.82		$	0.44		$	0.57		$	0.48		$	0.93		$	0.18		$	0.67		$	0.73		$	0.74		$	0.57
Pre-tax operating margin - GAAP (a)	23		%	30		%	26		%	20		%	25		%	22		%	36		%	4		%	29		%	30		%	29		%	23		%
Non-GAAP (a)(e)	27		%	28		%	29		%	26		%	27		%	30		%	29		%	28		%	30		%	33		%	31		%	30		%
Return on common equity (annualized) - GAAP	N/M			9.7		%	11.1		%	5.7		%	7.4		%	6.1		%	11.6		%	2.2		%	8.8		%	9.4		%	9.1		%	7.1		%
Return on tangible common equity (annualized) - Non-GAAP	N/M			25.0		%	28.3		%	14.3		%	17.6		%	14.5		%	26.2		%	5.9		%	20.3		%	21.5		%	20.8		%	16.2		%
Percent of non-US total revenue (f)	35		%	36		%	38		%	39		%	37		%	38		%	43		%	35		%	36		%	36		%	37		%	34		%
(a) The first quarter of 2015 was restated to reflect the retrospective application of adopting new accounting guidance related to Consolidations (ASU 2015-02).
(b) In the 1st quarter 2014, prior periods were restated to reflect the retrospective application of adopting new accounting guidance related to our investments in qualified affordable housing projects (ASU 2014-01).
(c) Primarily attributable to noncontrolling interests related to consolidated investment management funds.
(d) The 1st quarter 2013 includes a $0.73 charge related to the disallowance of certain foreign tax credits. The 2nd quarter 2013 includes a $0.09 gain related to an equity investment. The 3rd quarter 2013 includes a $0.22 benefit related to the U.S. Tax Court's partial reconsideration of a tax decision disallowing certain foreign tax credits. The 4th quarter 2013 includes a $0.10 loss related to an equity investment. The 2nd quarter 2014 includes a $0.14 charge related to severance and certain investment management funds. The 3rd quarter 2014 includes a $0.27 gain related to the sale of an investment in Wing Hang Bank, $0.18 related to a gain on the sale of the One Wall Street building and a $0.16 charge related to litigation and restructuring. The 4th quarter 2014 includes a $0.13 benefit primarily related to a tax carryback claim, and a $0.53 charge related to litigation and restructuring. The 2nd quarter 2015 includes a $0.03 charge related to litigation and restructuring. The 4th quarter 2015 includes an $0.11 charge for the impairment charge related to a recent court decision, litigation and restructuring charges.
(e) Non-GAAP excludes gain (loss) related to an equity investment, net (loss) income attributable to noncontrolling interests of consolidated investment management funds, the gains on the sales of our investment in Wing Hang Bank and the One Wall Street building, M&I, litigation and restructuring charges (recoveries), the impairment charge related to a recent court decision, a charge (recovery) related to investment management funds, net of incentives, amortization of intangible assets, and the benefit primarily related to a tax carryback claim, if applicable. See "Supplemental information - Explanation of GAAP and Non-GAAP financial measures" beginning on page 24 of the Quarterly Earnings Release dated January 21, 2016, for the fourth quarter of 2015 (the "Quarterly Earnings Release"), furnished as an exhibit to the Current Report on Form 8-K to which these Quarterly Financial Trends are furnished as an exhibit.
(f) Includes fee revenue, net interest revenue and income from consolidated investment management funds, net of net loss (income) attributable to noncontrolling interests.
Note: See pages 4 through 7 for additional details of revenue/expense items impacting consolidated results.
N/M - Not meaningful

3

THE BANK OF NEW YORK MELLON CORPORATION

FEE AND OTHER REVENUE - 12 Quarter Trend

	2013												2014												2015
(dollar amounts in millions unless otherwise noted)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Investment services fees:
Asset servicing	$	930		$	938		$	929		$	953		$	971		$	976		$	988		$	982		$	995		$	1,011		$	1,019		$	986
Securities lending	39			50			35			31			38			46			37			37			43			49			38			46
Issuer services	237			294			322			237			229			231			315			193			232			234			313			199
Clearing services	304			321			315			324			325			326			337			347			344			347			345			339
Treasury services	141			139			137			137			136			141			142			145			137			144			137			137
Total investment services fees	1,651			1,742			1,738			1,682			1,699			1,720			1,819			1,704			1,751			1,785			1,852			1,707
Investment management and performance fees (a)	822			848			821			904			843			883			881			885			867			878			829			864
Foreign exchange and other trading revenue	161			207			160			146			136			130			153			151			229			187			179			173
Distribution and servicing	49			45			43			43			43			43			44			43			41			39			41			41
Financing-related fees	41			44			44			43			38			44			44			43			40			58			71			51
Investment and other income (a)	88			285			151			(43		)	102			142			890			78			60			104			59			93
Total fee revenue (a)	$	2,812		$	3,171		$	2,957		$	2,775		$	2,861		$	2,962		$	3,831		2,904			2,988			3,051			3,031			2,929
Net securities gains	48			32			22			39			22			18			20			31			24			16			22			21
Total fee and other revenue (a)	$	2,860		$	3,203		$	2,979		$	2,814		$	2,883		$	2,980		$	3,851		$	2,935		$	3,012		$	3,067		$	3,053		$	2,950
Fee revenue as a percentage of total revenue - excluding net securities gains	79		%	79		%	79		%	78		%	79		%	79		%	83		%	79		%	79		%	79		%	80		%	79		%
(a)    The first quarter of 2015 was restated to reflect the retrospective application of adopting new accounting guidance related to Consolidations (ASU 2015-02).

4

THE BANK OF NEW YORK MELLON CORPORATION - Average Balances and Interest Rates

	2013																				2014
(dollar amounts in millions)	March 31					June 30					September 30					December 31					March 31					June 30
	Average balance			Average rate		Average balance			Average rate		Average balance			Average rate		Average balance			Average rate		Average balance			Average rate		Average balance			Average rate
Assets
Interest-earning assets:
Interest-bearing deposits with banks (primarily foreign)	$	40,967		0.70	%	$	42,772		0.64	%	$	41,597		0.66	%	$	39,563		0.71	%	$	41,617		0.71	%	$	41,424		0.74	%
Interest-bearing deposits with Federal Reserve & other central banks	63,240			0.20		55,911			0.22		65,704			0.23		83,232			0.23		74,399			0.25		85,546			0.26
Federal funds sold and securities purchased under resale agreements	7,478			0.54		7,878			0.52		8,864			0.56		9,403			0.61		11,118			0.61		13,387			0.58
Margin loans	13,346			1.17		13,906			1.14		14,653			1.10		15,224			1.08		15,840			1.07		17,050			1.05
Non-margin loans:
Domestic offices	21,358			2.38		21,689			2.40		21,378			2.40		22,538			2.28		22,002			2.31		22,566			2.30
Foreign offices	11,575			1.36		12,318			1.32		12,225			1.31		13,006			1.22		13,805			1.26		13,833			1.34
Total non-margin loans	32,933			2.02		34,007			2.01		33,603			2.01		35,544			1.89		35,807			1.90		36,399			1.94
Securities
U.S. government obligations	18,814			1.54		19,887			1.62		16,540			1.76		13,418			1.96		17,213			1.61		17,462			1.63
U.S. government agency obligations	42,397			1.85		47,631			1.80		45,745			2.02		43,465			2.00		42,710			1.87		43,167			1.67
Obligations of states and political subdivisions	6,194			2.38		6,377			2.26		6,518			2.47		6,757			2.76		6,691			2.50		6,473			2.58
Other securities	34,507			2.03		33,243			1.93		32,403			1.92		33,000			1.78		33,920			1.64		34,318			1.55
Trading securities	5,878			2.40		6,869			2.33		5,523			2.83		6,173			2.82		5,217			2.60		5,532			2.19
Total securities	107,790			1.91		114,007			1.86		106,729			2.02		102,813			1.97		105,751			1.83		106,952			1.71
Total interest-earning assets	265,754			1.26		268,481			1.27		271,150			1.28		285,779			1.21		284,532			1.17		300,758			1.10
Allowance for loan losses	(264		)			(237		)			(212		)			(207		)			(210		)			(197		)
Cash and due from banks	4,534					5,060					6,400					6,623					5,886					5,064
Other assets	52,137					52,627					52,549					52,434					53,430					52,182
Total Asset Consol VIE FAS 167	11,503					11,524					11,863					11,506					11,354					11,405
Total Assets	$	333,664				$	337,455				$	341,750				$	356,135				$	354,992				$	369,212
Liabilities and total equity
Interest-bearing liabilities:
Money market rate accounts and demand deposit accounts	$	8,778		0.19	%	$	8,183		0.22	%	$	8,626		0.16	%	$	11,042		0.12	%	$	9,333		0.11	%	$	7,583		0.13	%
Savings	819			0.29		897			0.24		1,015			0.25		993			0.25		1,034			0.25		1,185			0.27
Other time deposits	39,091			0.05		41,706			0.04		41,546			0.04		41,523			0.04		41,544			0.04		42,824			0.04
Foreign offices	99,040			0.08		100,433			0.07		102,360			0.07		103,462			0.06		101,075			0.06		111,082			0.06
Total interest-bearing deposits	147,728			0.08		151,219			0.07		153,547			0.06		157,020			0.06		152,986			0.06		162,674			0.06
Federal funds purchased and securities sold under repurchase agreements	9,187			(0.12	)	9,206			(0.28	)	12,164			(0.12	)	13,155			(0.10	)	14,505			(0.13	)	19,030			(0.05	)
Trading Liabilities	2,552			1.35		3,036			1.40		2,325			1.69		2,534			1.42		1,978			1.59		2,993			0.97
Other borrowed funds	1,397			0.76		1,443			0.19		2,233			0.19		2,378			0.42		1,137			0.47		3,242			0.23
Payables to customers and broker-dealers	9,019			0.09		9,073			0.08		8,659			0.09		9,400			0.09		8,883			0.09		8,916			0.09
Long-term debt	18,878			1.18		19,002			0.94		19,025			1.00		19,501			1.05		20,420			1.09		20,361			1.16
Total interest-bearing liabilities	188,761			0.20		192,979			0.16		197,953			0.16		203,988			0.17		199,909			0.17		217,216			0.17
Total noninterest-bearing deposits	70,337					70,648					72,075					79,999					81,430					77,820
Other liabilities	27,416					26,779					24,380					23,546					24,608					24,854
VIE Liabilities & Obligations FAS 167	10,186					10,242					10,466					10,283					10,128					10,180
Total Shareholders' Equity	35,966					35,817					35,826					37,260					37,851					38,127
Noncontrolling interest	998					990					1,050					1,059					1,066					1,015
Total liabilities and shareholders' equity	$	333,664				$	337,455				$	341,750				$	356,135				$	354,992				$	369,212
Net interest margin - Taxable equivalent basis				1.11	%				1.15	%				1.16	%				1.09	%				1.05	%				0.98	%

Note: Interest and average rates were calculated on a taxable equivalent basis, at tax rates of approximately 35%, using dollar amounts in thousands and the actual number of days in the year.

5

THE BANK OF NEW YORK MELLON CORPORATION - Average Balances and Interest Rates (continued)

.

	2014										2015
(dollar amounts in millions)	September 30					December 31					March 31					June 30					September 30					December 31
	Average balance			Average rate		Average balance			Average rate		Average balance			Average rate		Average balance			Average rate		Average balance			Average rate		Average balance			Average rate
Assets
Interest-earning assets:
Interest-bearing deposits with banks (primarily foreign)	$	34,882		0.66	%	$	24,623		0.49	%	$	22,071		0.56	%	$	20,235		0.56	%	$	20,549		0.45	%	$	19,301		0.45	%
Interest-bearing deposits with Federal Reserve & other central banks	88,713			0.23		97,440			0.22		81,160			0.23		81,846			0.21		84,175			0.20		84,880			0.18
Federal funds sold and securities purchased under resale agreements	15,683			0.61		18,536			0.56		20,416			0.59		23,545			0.61		25,366			0.61		24,147			0.69
Margin loans	18,108			1.04		18,897			1.01		20,051			1.00		20,467			1.01		19,839			1.05		19,321			1.09
Non-margin loans:
Domestic offices	23,826			2.20		25,103			2.20		25,256			2.14		26,716			2.06		27,411			2.15		27,751			2.06
Foreign offices	12,901			1.30		12,844			1.21		12,628			1.24		13,893			1.19		14,407			1.13		14,892			1.17
Total non-margin loans	36,727			1.88		37,947			1.86		37,884			1.84		40,609			1.77		41,818			1.80		42,643			1.75
Securities
U.S. government obligations	23,067			1.38		24,331			1.48		27,454			1.38		28,331			1.42		23,935			1.52		23,955			1.53
U.S. government agency obligations	46,186			1.67		49,106			1.70		52,744			1.68		56,332			1.77		55,624			1.76		55,441			1.81
Obligations of states and political subdivisions	5,830			2.54		5,305			2.61		5,213			2.64		5,021			2.67		4,465			2.81		4,164			2.80
Other securities	36,972			1.37		38,501			1.23		38,065			1.33		38,957			1.24		37,164			1.28		35,972			1.25
Trading securities	5,435			2.36		3,922			2.64		3,046			2.46		3,253			2.63		2,737			2.74		2,786			2.79
Total securities	117,490			1.59		121,165			1.58		126,522			1.57		131,894			1.59		123,925			1.63		122,318			1.65
Total interest-earning assets	311,603			1.05		318,608			1.02		308,104			1.07		318,596			1.08		315,672			1.08		312,610			1.08
Allowance for loan losses	(187		)			(186		)			(191		)			(190		)			(184		)			(181		)
Cash and due from banks	6,225					4,715					6,204					6,785					6,140					5,597
Other assets (a)	52,526					52,472					51,966					50,808					49,700					48,849
Total Asset Consol VIE FAS 167 (a)	10,242					9,623					2,328					2,280					2,125					1,715
Total Assets (a)	$	380,409				$	385,232				$	368,411				$	378,279				$	373,453				$	368,590
Liabilities and total equity
Interest-bearing liabilities:
Money market rate accounts and demand deposit accounts	$	7,886		0.14	%	$	8,869		0.12	%	$	10,021		0.12	%	$	10,322		0.13	%	$	10,623		0.13	%	$	9,292		0.12	%
Savings	1,258			0.28		1,262			0.30		1,429			0.30		1,326			0.27		1,279			0.27		1,217			0.27
Other time deposits	41,248			0.04		41,507			0.04		43,259			0.04		46,807			0.03		43,529			0.04		43,061			0.03
Foreign offices	113,841			0.05		111,511			0.02		104,811			0.03		112,261			—		114,322			—		106,764			—
Total interest-bearing deposits	164,233			0.06		163,149			0.03		159,520			0.04		170,716			0.02		169,753			0.02		160,334			0.01
Federal funds purchased and securities sold under repurchase agreements	20,620			(0.07	)	20,285			(0.05	)	13,877			(0.09	)	16,732			(0.02	)	14,796			(0.04	)	20,349			(0.03	)
Trading Liabilities	2,806			0.84		1,024			1.44		795			1.07		632			1.84		475			1.42		638			1.34
Other borrowed funds	4,587			0.15		5,270			0.25		2,108			0.50		3,795			0.37		2,823			0.35		733			1.13
Payables to customers and broker-dealers	9,705			0.10		10,484			0.08		10,932			0.07		11,234			0.07		11,504			0.06		12,904			0.06
Long-term debt	20,429			1.12		21,187			1.27		20,199			1.21		20,625			0.99		21,070			1.21		21,418			1.19
Total interest-bearing liabilities	222,380			0.16		221,399			0.16		207,431			0.15		223,734			0.12		220,421			0.14		216,376			0.14
Total noninterest-bearing deposits	82,334					85,330					89,592					84,890					85,046					85,878
Other liabilities	27,369					30,743					32,341					29,840					27,880					26,530
VIE Liabilities & Obligations FAS 167 (a)	8,879					8,101					1,004					857					841					629
Total Shareholders' Equity	38,313					38,421					37,048					37,829					38,140					38,216
Noncontrolling interest (a)	1,134					1,238					995					1,129					1,125					961
Total liabilities and shareholders' equity (a)	$	380,409				$	385,232				$	368,411				$	378,279				$	373,453				$	368,590
Net interest margin - Taxable equivalent basis				0.94	%				0.91	%				0.97	%				1.00	%				0.98	%				0.99	%

(a) The first quarter of 2015 was restated to reflect the retrospective application of adopting new accounting guidance related to Consolidations (ASU 2015-02).

Note: Interest and average rates were calculated on a taxable equivalent basis, at tax rates of approximately 35%, using dollar amounts in thousands and the actual number of days in the year.

6

THE BANK OF NEW YORK MELLON CORPORATION

NONINTEREST EXPENSE - 12 Quarter Trend

	2013								2014									2015
(dollar amounts in millions)	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr			2nd Qtr		3rd Qtr		4th Qtr		1st Qtr			2nd Qtr		3rd Qtr		4th Qtr
Staff:
Compensation	$	885	$	891	$	915	$	929	$	925		$	903	$	909	$	893	$	871		$	877	$	905	$	927
Incentives	338		364		339		343		359			313		340		319		425			349		326		315
Employee benefits	249		254		262		250		227			223		228		206		189			208		206		239
Total staff	1,472		1,509		1,516		1,522		1,511			1,439		1,477		1,418		1,485			1,434		1,437		1,481
Professional, legal and other purchased services	295		317		296		344		312			314		323		390		302			299		301		328
Software and equipment	228		238		226		241		237			236		234		235		228			228		226		225
Net occupancy	163		159		153		154		154			152		154		150		151			149		152		148
Distribution and servicing	106		111		108		110		107			112		107		102		98			96		95		92
Business development	68		90		63		96		64			68		61		75		61			72		59		75
Sub-custodian	64		77		71		68		68			81		67		70		70			75		65		60
Other	307		215		249		258		223			347		250		211		242			250		268		201
Amortization of intangible assets	86		93		81		82		75			75		75		73		66			65		66		64
Merger & integration, litigation and restructuring charges	39		13		16		2		(12		)	122		220		800		(3		)	59		11		18
Total noninterest expense	$	2,828	$	2,822	$	2,779	$	2,877	$	2,739		$	2,946	$	2,968	$	3,524	$	2,700		$	2,727	$	2,680	$	2,692
Memo:
Total noninterest expense excluding M&I, litigation, restructuring, amortization of intangible assets and the charge (recovery) related to investment management funds, net of incentives - Non-GAAP	$	2,664	$	2,743	$	2,682	$	2,793	$	2,681		$	2,640	$	2,673	$	2,651	$	2,637		$	2,603	$	2,603	$	2,610
Full-time employees at period-end	49,700		49,800		50,800		51,100		51,400			51,100		50,900		50,300		50,500			50,700		51,300		51,200

7

THE BANK OF NEW YORK MELLON CORPORATION

ASSETS UNDER MANAGEMENT, CUSTODY AND/OR ADMINISTRATION AND SECURITIES LENDING - 12 Quarter Trend

	2013												2014												2015
(dollar amounts in billions unless otherwise noted)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Assets under management at period-end: (a)
Institutional	$	915		$	945		$	1,016		$	1,047		$	1,092		$	1,084		$	1,106		$	1,164		$	1,188		$	1,163		$	1,129		$	1,126
Mutual Funds	404			377			407			426			415			440			430			438			445			454			419			421
Private Client	79			79			82			84			85			85			84			84			84			83			77			78
Assets under management	$	1,398		$	1,401		$	1,505		$	1,557		$	1,592		$	1,609		$	1,620		$	1,686		$	1,717		$	1,700		$	1,625		$	1,625		(b)
AUM at period-end, by product type: (a)
Equity	17		%	17		%	18		%	17		%	17		%	17		%	16		%	15		%	15		%	15		%	14		%	14		%
Fixed income	14			14			13			13			13			13			13			12			12			13			13			13
Index	19			20			20			21			21			22			21			21			22			21			20			20
Liability-driven investments (c)	25			25			26			26			27			27			28			30			30			30			32			32
Alternative investments	5			4			4			4			4			4			4			4			4			4			4			4
Cash	20			20			19			19			18			17			18			18			17			17			17			17
Total AUM	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%	(b)
Assets under custody and/or administration at period-end (in trillions) (d)	$	26.3		$	26.2		$	27.4		$	27.6		$	27.9		$	28.5		$	28.3		$	28.5		$	28.5		$	28.6		$	28.5		$	28.9		(b)
Market value of securities on loan at period-end (e)	$	244		$	255		$	255		$	235		$	264		$	280		$	282		$	289		$	291		$	283		$	288		$	277
Key Market Metrics
S&P 500 Index (f)	1569			1606			1682			1848			1872			1960			1972			2059			2068			2063			1920			2044
S&P 500 Index - daily average	1514			1609			1675			1769			1835			1900			1976			2009			2064			2102			2027			2052
FTSE 100 Index (f)	6412			6215			6462			6749			6598			6744			6623			6566			6773			6521			6062			6242
FTSE 100 Index-daily average	6300			6438			6530			6612			6680			6764			6756			6526			6793			6920			6399			6271
MSCI World Index (f)	1435			1434			1544			1661			1674			1743			1698			1710			1741			1736			1582			1663
MSCI World Index-daily average	1405			1463			1511			1602			1647			1698			1733			1695			1726			1780			1691			1677
Barclays Capital Global Aggregate BondSM Index (f)(g)	356			343			356			354			365			376			361			357			348			342			346			342
NYSE & NASDAQ Share Volume (in billions)	174			186			166			179			196			187			173			198			187			185			206			198
JP Morgan G7 Volatility Index - daily average (h)	9.02			9.84			9.72			8.20			7.80			6.22			6.21			8.54			10.40			10.06			9.93			9.49
Average Fed Funds effective rate	0.14		%	0.12		%	0.09		%	0.09		%	0.07		%	0.09		%	0.09		%	0.10		%	0.11		%	0.13		%	0.13		%	0.16		%
Foreign exchange rates vs. U.S. dollar:
British pound - average rate	$1.55			$1.54			$1.55			$1.62			$1.66			$1.68			$1.67			$1.58			$1.51			$1.53			$1.55			$1.52
Euro - average rate	1.32			1.31			1.32			1.36			1.37			1.37			1.33			1.25			1.13			1.11			1.11			1.10
(a) Excludes securities lending cash management assets and assets managed in the Investment Services business. Also excludes assets under management related to Newton's private client business that was sold in September 2013. In Q315, prior period AUM was restated to reflect the reclassification of Meriten from the Investment Management business to the Other segment.
(b) Preliminary.
(c) Includes currency overlay assets under management.
(d) Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.2 trillion at March 31, 2013, $1.1 trillion at June 30, 2013, $1.2 trillion at Sept. 30, 2013, Dec. 31, 2013, March 31, 2014, June 30, 2014 and Sept. 30, 2014, $1.1 trillion at Dec. 31, 2014, March 31, 2015, and June 30, 2015, and $1.0 trillion at Sept. 30, 2015 and Dec. 31, 2015.
(e) Represents the total amount of securities on loan managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent, beginning in the fourth quarter of 2013, on behalf of CIBC Mellon clients, which totaled $62 billion at Dec. 31, 2013, $66 billion at March 31, 2014, $64 billion at June 30, 2014, $65 billion at Sept. 30, 2014 and Dec. 31, 2014, $69 billion at March 31, 2015, $68 billion at June 30, 2015, $61 billion at Sept. 30, 2015, and $55 billion at Dec. 31, 2015.
(f) Period end.
(g) Unhedged in U.S. dollar terms.
(h) The JP Morgan G7 Volatility Index is based on the implied volatility in 3-month currency options.

8

THE BANK OF NEW YORK MELLON CORPORATION

ASSETS UNDER MANAGEMENT NET FLOWS - 12 Quarter Trend

	2013												2014												2015
(dollar amounts in billions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Assets under management at beginning of period (a)	$	1,349		$	1,398		$	1,401		$	1,505		$	1,557		$	1,592		1,609			$	1,620		$	1,686		$	1,717		$	1,700		$	1,625
Net inflows (outflows):
Long-term:
Equity	1			1			3			(5		)	(1		)	(5		)	(2		)	(5		)	(5		)	(13		)	(4		)	(9		)
Fixed income	4			2			(1		)	6			—			—			—			4			3			(2		)	(3		)	1
Index	13			8			2			(3		)	—			7			(3		)	1			8			(9		)	(10		)	(16		)
Liability-driven investments (b)	22			11			27			5			20			(17		)	19			24			8			5			11			11
Alternative investments	—			(1		)	2			1			2			2			—			2			1			3			1			2
Total long-term inflows (outflows)	40			21			33			4			21			(13		)	14			26			15			(16		)	(5		)	(11		)
Short-term:
Cash	(13		)	(1		)	13			6			(7		)	(17		)	18			6			1			(11		)	(10		)	2
Total net inflows (outflows)	27			20			46			10			14			(30		)	32			32			16			(27		)	(15		)	(9		)
Net market / currency impact / acquisition	22			(17		)	58			42			21			47			(21		)	34			15			10			(60		)	9
Assets under management at end of period (a)	$	1,398		$	1,401		$	1,505		$	1,557		$	1,592		$	1,609		$	1,620		$	1,686		$	1,717		$	1,700		$	1,625		$	1,625		(c)
(a) Excludes securities lending cash management assets and assets managed in the Investment Services business. Also excludes assets under management related to Newton's private client business that was sold in September 2013. In Q315, prior period AUM was restated to reflect the reclassification of Meriten from the Investment Management business to the Other segment.
(b) Includes currency overlay assets under management.
(c) Preliminary.

9

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT MANAGEMENT BUSINESS - 12 Quarter Trend

	2013												2014												2015
(dollar amounts in millions unless otherwise noted)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Revenue:
Investment management fees:
Mutual funds	$	299		$	299		$	293		$	303		$	299		$	311		$	315		$	306		$	301		$	312		$	301		$	294
Institutional clients	347			354			356			371			359			373			370			364			365			363			347			350
Wealth management	143			146			145			149			153			156			158			157			159			160			156			155
Total investment management fees	789			799			794			823			811			840			843			827			825			835			804			799
Performance fees	15			33			10			72			20			29			22			40			15			20			7			55
Investment management and performance fees	804			832			804			895			831			869			865			867			840			855			811			854
Distribution and servicing	45			42			40			40			39			39			40			39			38			38			37			39
Other (a)	16			24			24			42			15			47			15			6			45			20			(2		)	25
Total fee and other revenue (a)	865			898			868			977			885			955			920			912			923			913			846			918
Net interest revenue	63			62			67			68			70			66			69			69			74			78			83			84
Total revenue	928			960			935			1,045			955			1,021			989			981			997			991			929			1,002
Noninterest expense (ex. intangible amortization and the charge (recovery) related to investment management funds, net of incentives)	646			680			677			745			683			713			715			716			710			703			668			691
Income before taxes (ex. intangible amortization and the charge (recovery) related to investment management funds)	282			280			258			300			272			308			274			265			287			288			261			311
Charge (recovery) related to investment management funds, net of incentives	39			(27		)	—			—			(5		)	109			—			—			—			—			—			—
Amortization of intangible assets	38			37			34			34			30			30			29			29			24			25			24			24
Income before taxes	$	205		$	270		$	224		$	266		$	247		$	169		$	245		$	236		$	263		$	263		$	237		$	287
Average assets	$	38,615		$	37,828		$	38,567		$	38,668		$	39,333		$	37,619		$	36,542		$	37,163		$	31,361		$	30,414		$	30,960		$	30,982
Assets under management at period-end (in billions) (b)	$	1,398		$	1,401		$	1,505		$	1,557		$	1,592		$	1,609		$	1,620		$	1,686		$	1,717		$	1,700		$	1,625		$	1,625		(c)
Pre-tax operating margin	22		%	28		%	24		%	25		%	26		%	17		%	25		%	24		%	26		%	27		%	26		%	29		%
Adjusted pre-tax operating margin (d)	36		%	35		%	33		%	34		%	35		%	36		%	33		%	33		%	34		%	34		%	34		%	36		%
(a)  Total fee and other revenue includes the impact of the consolidated investment management funds, net of non-controlling interests. See "Supplemental information - Explanation of GAAP and Non-GAAP financial measures" beginning on page 24 of the Quarterly Earnings Release for the reconciliation of Non-GAAP measures. Additionally, other revenue includes asset servicing, treasury services, foreign exchange and other trading revenue and investment and other income.
(b)  Excludes securities lending cash management assets and assets managed in the Investment Services business. Also excludes assets under management related to Newton's private client business that was sold in September 2013. In Q315, prior period AUM was restated to reflect the reclassification of Meriten from the Investment Management business to the Other segment.
(c) Preliminary.
(d)  Excludes the net negative impact of money market fee waivers, amortization of intangible assets and the charge (recovery) related to investment management funds net of incentives, and is net of distribution and servicing expense. See "Supplemental information - Explanation of GAAP and Non-GAAP financial measures" beginning on page 24 of the Quarterly Earnings Release for the reconciliation of Non-GAAP measures.

10

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT SERVICES BUSINESS - 12 Quarter Trend

	2013												2014												2015
(dollar amounts in millions unless otherwise noted)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Revenue:
Investment services fees
Asset servicing fees - ex. securities lending	$	912		$	922		$	913		$	936		$	955		$	958		$	971		$	964		$	979		$	995		$	1,001		$	969
Securities lending revenue	31			39			26			21			30			35			27			28			34			40			30			36
Issuer services	236			294			321			236			228			231			314			193			231			234			312			199
Clearing services	302			320			314			322			323			324			336			346			342			346			345			337
Treasury services	137			135			135			137			134			140			139			142			135			141			135			135
Total investment services fees	1,618			1,710			1,709			1,652			1,670			1,688			1,787			1,673			1,721			1,756			1,823			1,676
Foreign Exchange and other trading revenue	173			193			177			150			158			145			159			165			209			179			177			148
Other (a)	70			67			63			58			59			86			59			70			63			85			87			102
Total fee and other revenue	1,861			1,970			1,949			1,860			1,887			1,919			2,005			1,908			1,993			2,020			2,087			1,926
Net interest revenue	653			633			619			609			590			593			583			573			599			636			628			632
Total revenue	2,514			2,603			2,568			2,469			2,477			2,512			2,588			2,481			2,592			2,656			2,715			2,558
Provision for credit losses	1			—			—			—			—			—			—			—			—			—			—			—
Noninterest expenses (ex. intangible amortization)	1,792			1,828			1,764			1,820			1,778			1,823			1,831			2,509			1,794			1,840			1,822			1,765
Income before taxes (ex. intangible amortization)	721			775			804			649			699			689			757			(28		)	798			816			893			793
Amortization of intangible assets	46			55			46			47			44			44			44			43			41			40			41			40
Income before taxes	$	675		$	720		$	758		$	602		$	655		$	645		$	713		$	(71	)	$	757		$	776		$	852		$	753
Average loans	$	26,697		$	27,814		$	27,865		$	31,211		$	31,468		$	33,115		$	33,785		$	35,448		$	37,699		$	38,264		$	38,025		$	36,960
Average assets	$	240,187		$	244,802		$	246,252		$	258,296		$	258,472		$	264,228		$	266,466		$	276,615		$	285,012		$	290,102		$	282,159		$	278,364
Average deposits	$	200,222		$	204,499		$	206,068		$	216,216		$	214,947		$	220,701		$	221,734		$	228,282		$	234,183		$	237,193		$	230,153		$	226,774
Pre-tax operating margin	27		%	28		%	30		%	24		%	26		%	26		%	28		%	(3		)%	29		%	29		%	31		%	29		%
Pre-tax operating margin (ex. intangible amortization)	29		%	30		%	31		%	26		%	28		%	27		%	29		%	(1		)%	31		%	31		%	33		%	31		%
Investment services fees as a percentage of noninterest expense (b)	92		%	94		%	97		%	90		%	93		%	93		%	100		%	93		%	96		%	98		%	101		%	96		%
Assets under custody and/or administration at period-end (in trillions) (c)	$	26.3		$	26.2		$	27.4		$	27.6		$	27.9		$	28.5		$	28.3		$	28.5		$	28.5		$	28.6		$	28.5		$	28.9		(d)
Market value of securities on loan at period-end (in billions) (e)	$	244		$	255		$	255		$	235		$	264		$	280		$	282		$	289		$	291		$	283		$	288		$	277
(a) Other revenue includes investment management fees, financing-related fees, distribution and servicing revenue, and investment and other income.
(b) Noninterest expense excludes amortization of intangible assets and litigation expense.
(c) Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.2 trillion at March 31, 2013, $1.1 trillion at June 30, 2013, $1.2 trillion at Sept. 30, 2013, Dec. 31, 2013, March 31, 2014, June 30, 2014 and Sept. 30, 2014, $1.1 trillion at Dec. 31, 2014, March 31, 2015, and June 30, 2015, and $1.0 trillion at Sept.30, 2015 and Dec. 31, 2015.
(d) Preliminary.
(e) Represents the total amount of securities on loan managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent, beginning in the fourth quarter of 2013, on behalf of CIBC Mellon clients, which totaled $62 billion at Dec. 31, 2013, $66 billion at March 31, 2014, $64 billion at June 30, 2014, $65 billion at Sept. 30, 2014 and Dec. 31, 2014, $69 billion at March 31, 2015, $68 billion at June 30, 2015, $61 billion at Sept. 30, 2015, and $55 billion at Dec. 31, 2015.

11

THE BANK OF NEW YORK MELLON

OTHER SEGMENT- 12 Quarter Trend

	2013 (a)											2014												2015
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr		4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Revenue:
Fee and other revenue (a)	$	168		$	361		$	186	$	(4	)	$	127		$	135		$	942		$	133		$	117		$	137		$	103		$	117
Net interest revenue	3			62			86		84			68			60			69			70			55			65			48			44
Total revenue (a)	171			423			272		80			195			195			1,011			203			172			202			151			161
Provision for credit loss	(25		)	(19		)	2		6			(18		)	(12		)	(19		)	1			2			(6		)	1			163
Noninterest expense (ex. amortization of intangible assets M&I and restructuring charges)	260			245			243		217			208			106			290			226			134			110			125			174
Income (loss) before taxes (ex. M&I and restructuring charges) (a)	$	(64	)	$	197		$	27	$	(143	)	$	5		$	101		$	740		$	(24	)	$	36		$	98		$	25		$	(176	)
Amortization of intangible assets	2			1			1		1			1			1			2			1			1			—			1			—
M&I and restructuring charges (recoveries)	5			3			14		13			—			120			57			—			(4		)	8			(2		)	(4		)
Income (loss) before taxes (a)	$	(71	)	$	193		$	12	$	(157	)	$	4		$	(20	)	$	681		$	(25	)	$	39		$	90		$	26		$	(172	)
Average loans and leases	$	10,610		$	10,846		$	10,938	$	9,802		$	10,104		$	9,962		$	10,278		$	10,272		$	8,602		$	10,514		$	10,853		$	11,557
Average assets	$	54,862		$	54,825		$	56,931	$	59,171		$	57,187		$	67,365		$	77,401		$	71,454		$	52,038		$	57,763		$	60,334		$	59,244
(a) In the first quarter of 2014, prior periods were restated to reflect the retrospective application of adopting new accounting guidance related to our investments in qualified affordable housing projects (ASU 2014-01).

12

THE BANK OF NEW YORK MELLON CORPORATION BUSINESSES

	Investment Management									Investment Services									Other												Consolidated Results
(dollar amounts in millions unless otherwise noted)	2015			2014			2013			2015			2014			2013			2015				2014				2013				2015				2014				2013
Revenue:
Investment services fees
Asset servicing	$	102		$	106		$	104		$	4,084		$	3,968		$	3,800		$	1			$	1			$	1			$	4,187			$	4,075			$	3,905
Issuer services	—			—			—			976			966			1,087			2				2				3				978				968				1,090
Clearing services	—			—			—			1,370			1,329			1,258			5				6				6				1,375				1,335				1,264
Treasury services	9			9			2			546			555			544			—				—				8				555				564				554
Total investment services fees	111			115			106			6,976			6,818			6,689			8				9				18				7,095				6,942				6,813
Investment management fees	3,263			3,321			3,205			70			74			63			22				48				77				3,355				3,443				3,345
Performance fees	97			111			130			—			—			—			1				4				—				98				115				130
Foreign exchange and other trading revenue	(13		)	(23		)	8			713			627			693			68				(34		)		(27		)		768				570				674
Distribution and servicing	152			157			167			10			11			8			—				5				5				162				173				180
Financing-related fees	(1		)	1			5			94			50			44			127				118				123				220				169				172
Investment and other income	(10		)	(11		)	(19		)	163			139			142			166			(a)	1,097			(a)	381			(a)	319			(a)	1,225			(a)	504			(a)
Total fee revenue	3,599			3,671			3,602			8,026			7,719			7,639			392			(a)	1,247			(a)(b)	577			(a)(b)	12,017			(a)(b)	12,637			(a)(b)	11,818			(a)(b)
Net securities gains (losses)	1			1			6			—			—			1			82				90				134				83				91				141
Total fee and other revenue	3,600			3,672			3,608			8,026			7,719			7,640			474			(a)	1,337			(a)(b)	711			(a)(b)	12,100			(a)(b)	12,728			(a)(b)	11,959			(a)(b)
Net interest revenue (expense)	319			274			260			2,495			2,339			2,514			212				267				235				3,026				2,880				3,009
Total revenue	3,919			3,946			3,868			10,521			10,058			10,154			686			(a)	1,604			(a)	946			(a)	15,126			(a)	15,608			(a)	14,968			(a)
Provision for credit losses	—			—			—			—			—			1			160				(48		)		(36		)		160				(48		)		(35		)
Noninterest expenses (ex. intangible amortization)	2,772			2,931			2,760			7,221			7,941			7,204			541				1,007				1,000				10,534				11,879				10,964
Income (loss) before taxes (ex. intangible amortization)	1,147			1,015			1,108			3,300			2,117			2,949			(15		)	(a)	645			(a)(b)	(18		)	(a)(b)	4,432			(a)(b)	3,777			(a)(b)	4,039			(a)(b)
Amortization of intangible assets	97			118			143			162			175			194			2				5				5				261				298				342
Income (loss) before taxes and noncontrolling interest	$	1,050		$	897		$	965		$	3,138		$	1,942		$	2,755		$	(17	)	(a)	$	640		(a)(b)	$	(23	)	(a)(b)	$	4,171		(a)(b)	$	3,479		(a)(b)	$	3,697		(a)(b)
Average loans	$	12,545		$	10,589		$	9,361		$	37,736		$	33,466		$	28,407		$	10,391			$	10,155			$	10,548			$	60,672			$	54,210			$	48,316
Average assets	$	30,928		$	37,655		$	38,420		$	283,886		$	266,495		$	247,431		$	57,373			$	68,416			$	56,460			$	372,187			$	372,566			$	342,311
Average deposits	$	15,160		$	14,154		$	13,753		$	232,050		$	221,453		$	206,793		$	4,224			$	6,932			$	5,150			$	251,434			$	242,539			$	225,696
Assets under management at period-end (in billions) (c)	$	1,625		$	1,686		$	1,557		$	—		$	—		$	—		$	—			$	—			$	—			$	1,625			$	1,686			$	1,557
Assets under custody and/or administration at period-end (in trillions) (d)	$	—		$	—		$	—		$	28.9		$	28.5		$	27.6		$	—			$	—			$	—			$	28.9			$	28.5			$	27.6
Market value of securities on loan at period-end (in billions) (e)	$	—		$	—		$	—		$	277		$	289		$	235		$	—			$	—			$	—			$	277			$	289			$	235
Pre-tax operating margin - GAAP	27		%	23		%	25		%	30		%	19		%	27		%	N/M				N/M				N/M				29		%		22		%		25		%
Memo:
Securities Lending Revenue																															$	176			$	158			$	155
(a) In the first quarter of 2014, prior periods were restated to reflect the retrospective application of adopting new accounting guidance related to our investments in qualified affordable housing projects (ASU 2014-01).
(b) Total fee and other revenue and income before taxes for the years 2013, 2014 and 2015 include income from consolidated investment management funds of $183 million, $163 million and $86 million, respectively, net of income attributable to noncontrolling interests of $80 million, $84 million and $64 million respectively. The net of these income statement line items of $103 million, $79 million and $18 million, respectively, are included above in fee and other revenue. The year 2015 includes a loss attributable to noncontrolling interest of $4 million related to other consolidated subsidiaries.
(c) Excludes securities lending cash management assets and assets managed in the Investment Services business. Also excludes assets under management related to Newton's private client business that was sold in September 2013. In 3Q15, prior period AUM was restated to reflect the reclassification of Meriten from the Investment Management business to the Other segment.
(d) Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.2 trillion at Dec. 31, 2013, $1.1 trillion at Dec. 31, 2014 and $1.0 trillion at Dec. 31, 2015.
(e) Represents the total amount of securities on loan managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent, beginning in the fourth quarter of 2013, on behalf of CIBC Mellon clients, which totaled $62 billion at Dec. 31, 2013, $65 billion at Dec. 31, 2014, and $55 billion at Dec. 31, 2015.
Note: See pages 10 through 12 for businesses results.
N/M - Not meaningful

13

THE BANK OF NEW YORK MELLON CORPORATION

NONPERFORMING ASSETS - 12 Quarter Trend

	2013												2014												2015
(dollar amounts in millions)	Mar 31			Jun 30			Sep 30			Dec 31			Mar 31			Jun 30			Sep 30			Dec 31			Mar 31			Jun 30			Sep 30			Dec 31
Nonperforming loans:
Other residential mortgages	$	148		$	135		$	128		$	117		$	107		$	105		$	113		$	112		$	111		$	110		$	103		$	102
Wealth management loans and mortgages	30			13			12			11			12			12			13			12			12			11			12			11
Commercial real estate	17			18			4			4			4			4			4			1			1			1			1			2
Commercial	24			24			15			15			13			13			13			—			—			—			—			—
Foreign	9			9			9			6			7			4			—			—			—			—			—			—
Financial institutions	3			2			1			—			—			—			—			—			—			—			—			171
Total nonperforming loans	231			201			169			153			143			138			143			125			124			122			116			286
Other assets owned	3			3			3			3			3			4			4			3			4			5			7			6
Total nonperforming assets (a)	$	234		$	204		$	172		$	156		$	146		$	142		$	147		$	128		$	128		$	127		$	123		$	292
Nonperforming assets ratio	0.48		%	0.41		%	0.34		%	0.30		%	0.27		%	0.24		%	0.26		%	0.22		%	0.21		%	0.20		%	0.20		%	0.46		%
Nonperforming assets ratio excluding margin loans	0.65		%	0.57		%	0.49		%	0.43		%	0.39		%	0.34		%	0.37		%	0.33		%	0.30		%	0.30		%	0.28		%	0.67		%
Allowance for loan losses/nonperforming loans	102.6			105.5			121.9			137.3			138.5			135.5			133.6			152.8			153.2			150.0			156.0			54.9
Allowance for loan losses/nonperforming assets	101.3			103.9			119.8			134.6			135.6			131.7			129.9			149.2			148.4			144.1			147.2			53.8
Total allowance for credit losses/nonperforming loans	155.0			167.7			200.6			224.8			228.0			225.4			201.4			224.0			228.2			227.9			241.4			96.2
Total allowance for credit losses/nonperforming assets	153.0			165.2			197.1			220.5			221.8			219.0			195.9			218.8			221.1			218.9			227.6			94.2
(a) Loans of consolidated investment management funds are not part of BNY Mellon's loan portfolio. Included in the loans of consolidated investment management funds are nonperforming loans for the 1st through 4th quarters of 2013 of $161 million, $44 million, $31 million, and $16 million, respectively, and for the 1st through 4th quarters of 2014 of $74 million, $68 million, $79 million, and $53 million, respectively. These loans are recorded at fair value and therefore do not impact the provision for credit losses and allowance for loan losses, and accordingly are excluded from the nonperforming assets table above. In 2Q15, BNY Mellon adopted the new accounting guidance included in ASU 2015-02, Consolidations. As a result, we deconsolidated substantially all of the loans of consolidated investment management funds retroactively to Jan.1, 2015.

14

THE BANK OF NEW YORK MELLON CORPORATION

ALLOWANCE FOR CREDIT LOSSES, PROVISION AND NET CHARGE-OFFS - 12 Quarter Trend

	2013												2014												2015
(dollar amounts in millions)	Mar 31			Jun 30			Sep 30			Dec 31			Mar 31			Jun 30			Sep 30			Dec 31			Mar 31			Jun 30			Sep 30			Dec 31
Allowance for credit losses:
Allowance for credit losses	$	266		$	237		$	212		$	206		$	210		$	198		$	187		$	191		$	191		$	190		$	183		$	181
Allowance for lending-related commitments	121			121			125			133			134			128			124			97			89			93			95			99
Allowance for credit losses - beginning of period	387			358			337			339			344			326			311			288			280			283			278			280
Net (charge-offs)
Charge-offs	(5		)	(3		)	(2		)	(6		)	(1		)	(4		)	(5		)	(10		)	—			—			—			(170		)
Recoveries	—			1			2			5			1			1			1			1			1			1			1			2
Total Net (charge-offs)	(5		)	(2		)	—			(1		)	—			(3		)	(4		)	(9		)	1			1			1			(168		)
Provision for credit losses	(24		)	(19		)	2			6			(18		)	(12		)	(19		)	1			2			(6		)	1			163
Allowance for credit losses - end of period	358			337			339			344			326			311			288			280			283			278			280			275
Allowance for loan losses
Allowance for loan losses	$	237		$	212		$	206		$	210		$	198		$	187		$	191		$	191		$	190		$	183		$	181		$	157
Allowance for lending-related commitments	121			125			133			134			128			124			97			89			93			95			99			118
Allowance for credit losses - end of period	358			337			339			344			326			311			288			280			283			278			280			275
Allowance for loan losses as a percentage of total loans	0.48		%	0.42		%	0.41		%	0.41		%	0.37		%	0.32		%	0.33		%	0.32		%	0.31		%	0.29		%	0.29		%	0.25		%

15

THE BANK OF NEW YORK MELLON CORPORATION

Quarterly Financial Trends

January 21, 2016

Notes:

The following transactions/changes have impacted the reporting of our results:

  In the third quarter of 2015, results of Meriten were reclassified from the Investment Management business to the Other segment. Meriten Investment Management was sold in July 2015.

The first quarter of 2015 was restated to reflect the retrospective application of adopting new accounting guidance related to Consolidations (ASU 2015-02).

In the first quarter of 2014, prior periods were restated to reflect the retrospective application of adopting new accounting guidance related to our investments in qualified affordable housing projects (ASU 2014-01).

In the first quarter of 2014, results of Newton's private client business were reclassified from the Investment Management business to the Other segment. Newton's private client business was sold in September 2013.

Restructuring charges in the second quarter of 2014 represent corporate initiatives and were recorded in the Other segment. In the fourth quarter of 2013, restructuring charges were recorded in the businesses. Prior to the fourth quarter of 2013, all restructuring charges were reported in the Other segment.

In the first quarter of 2013, incentive expense related to restricted stock and certain corporate overhead charges were allocated to Investment Management and Investment Services businesses which were previously included in the Other segment. All prior periods were restated to reflect these changes.

Certain immaterial reclassifications/revisions have been made to prior periods to place them on a basis comparable with the current period's presentation.

In businesses where average deposits are greater than average loans, average assets include an allocation of investment securities equal to the difference.

Quarterly return on common and tangible common equity ratios are annualized.

Non-GAAP Measures:

Certain Non-GAAP measures are included in this document. These measures are used by management to monitor financial performance, both on a company-wide and on a business basis. These Non-GAAP measures relate to certain revenue/expense categories, percentages and ratios as described in footnotes. For further information, see 'Supplemental information -- Explanation of GAAP and Non-GAAP Financial Measures' in the Quarterly Earnings Release. Summations may not equal due to rounding. As a result of our rounding convention and reclassifications noted above, differences may exist between the business trends data versus business data in the Form 10-K for the year ended December 31, 2015 or other reports filed with the SEC.

16