The Bank of New York Mellon Corporation (BK) 8-K Bny Mellon Reports Third Quarter Earnings of $974 Million or $0.90 Per Common Share

The Bank of New York Mellon Corporation

Quarterly Financial Trends

October 20, 2016

Table of Contents
Consolidated Results	Page
Consolidated Corporate Earnings - Quarterly Trend	3
Fee and Other Revenue	4
Average Balances and Interest Rates	5
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
Appendix - GAAP to Non-GAAP Reconciliations	17

THE BANK OF NEW YORK MELLON CORPORATION - CONSOLIDATED CORPORATE EARNINGS - 11 Quarter Trend

	2014												2015												2016
(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
Revenue:
Investment services fees
Asset servicing	$	1,009		$	1,022		$	1,025		$	1,019		$	1,038		$	1,060		$	1,057		$	1,032		$	1,040		$	1,069		$	1,067
Issuer services	229			231			315			193			232			234			313			199			244			234			337
Clearing services	325			326			337			347			344			347			345			339			350			350			349
Treasury services	136			141			142			145			137			144			137			137			131			139			137
Total investment services fees	1,699			1,720			1,819			1,704			1,751			1,785			1,852			1,707			1,765			1,792			1,890
Investment management and performance fees (a)	843			883			881			885			867			878			829			864			812			830			860
Foreign exchange & other trading revenue	136			130			153			151			229			187			179			173			175			182			183
Distribution and servicing	43			43			44			43			41			39			41			41			39			43			43
Financing-related fees	38			44			44			43			40			58			71			51			54			57			58
Investment and other income (a)(b)	102			142			890			78			60			104			59			93			105			74			92
Total fee revenue (a)(b)	2,861			2,962			3,831			2,904			2,988			3,051			3,031			2,929			2,950			2,978			3,126
Net securities gains	22			18			20			31			24			16			22			21			20			21			24
Total fee and other revenue (a)(b)	2,883			2,980			3,851			2,935			3,012			3,067			3,053			2,950			2,970			2,999			3,150
Income (loss) of consolidated investment management funds (a)	36			46			39			42			52			40			(22		)	16			(6		)	10			17
Net interest revenue	728			719			721			712			728			779			759			760			766			767			774
Total revenue (a)(b)	3,647			3,745			4,611			3,689			3,792			3,886			3,790			3,726			3,730			3,776			3,941
Provision for credit losses	(18		)	(12		)	(19		)	1			2			(6		)	1			163			10			(9		)	(19		)
Noninterest expense	2,676			2,749			2,673			2,651			2,637			2,603			2,603			2,610			2,555			2,554			2,564
Amortization of intangible assets	75			75			75			73			66			65			66			64			57			59			61
Merger & integration, litigation and restructuring charges	(12		)	122			220			800			(3		)	59			11			18			17			7			18
Total noninterest expense	2,739			2,946			2,968			3,524			2,700			2,727			2,680			2,692			2,629			2,620			2,643
Income (loss) from continuing operations before taxes (b)	926			811			1,662			164			1,090			1,165			1,109			871			1,091			1,165			1,317
Provision for income taxes (b)	232			217			556			(93		)	280			276			282			175			283			290			324
Net income (loss) from continuing operations (b)	694			594			1,106			257			810			889			827			696			808			875			993
Net income (loss) attributable to noncontrolling interest (a)(c)	(20		)	(17		)	(23		)	(24		)	(31		)	(36		)	6			(3		)	9			(2		)	(6		)
Preferred stock dividends	(13		)	(23		)	(13		)	(24		)	(13		)	(23		)	(13		)	(56		)	(13		)	(48		)	(13		)
Net income (loss) applicable to common shareholders of The Bank of New York Mellon Corporation (b)	$	661		$	554		$	1,070		$	209		$	766		$	830		$	820		$	637		$	804		$	825		$	974
Earnings per share (b)(d)	$	0.57		$	0.48		$	0.93		$	0.18		$	0.67		$	0.73		$	0.74		$	0.57		$	0.73		$	0.75		$	0.90
Pre-tax operating margin - GAAP (a)	25		%	22		%	36		%	4		%	29		%	30		%	29		%	23		%	29		%	31		%	33		%
Non-GAAP (a)(e)	27		%	30		%	29		%	28		%	30		%	33		%	31		%	30		%	31		%	33		%	35		%
Return on common equity (annualized) - GAAP	7.4		%	6.1		%	11.6		%	2.2		%	8.8		%	9.4		%	9.1		%	7.1		%	9.2		%	9.3		%	10.8		%
Return on tangible common equity (annualized) - Non-GAAP (e)	17.6		%	14.5		%	26.2		%	5.9		%	20.3		%	21.5		%	20.8		%	16.2		%	20.6		%	20.4		%	23.5		%
Percent of non-US total revenue	37		%	38		%	43		%	35		%	36		%	36		%	37		%	34		%	33		%	34		%	36		%
(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 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).
(c)  Primarily attributable to noncontrolling interests related to consolidated investment management funds.
(d)  The second quarter of 2014 includes a $0.14 charge related to severance and certain investment management funds. The third quarter of 2014 includes a $0.27 gain related to the sale of an investment in Wing Hang, $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 fourth quarter of 2014 includes a $0.13 benefit primarily related to a tax carryback claim, and a $0.53 charge related to litigation and restructuring. The second quarter of 2015 includes a $0.03 charge related to litigation and restructuring. The fourth quarter of 2015 includes an $0.11 charge for the impairment charge related to a court decision regarding Sentinel, litigation and restructuring charges. The first quarter, second quarter and third quarter of 2016 each include a $0.01 charge related to litigation and restructuring. The third quarter of 2016 also includes $0.01 recovery of the previously impaired Sentinel loan.
(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 and the One Wall Street building, M&I, litigation and restructuring charges (recoveries), a charge (recovery) related to investment management funds, net of incentives, amortization of intangible assets, the impairment charge related to a court decision regarding Sentinel, a recovery of the previously impaired Sentinel loan, 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 October 20, 2016, for the third quarter of 2016 (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. Also, see "Appendix - GAAP to Non-GAAP Reconciliations" beginning on page 17 for the reconciliation of Non-GAAP measures.
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 - 11 Quarter Trend

	2014												2015												2016
(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
Investment services fees:
Asset servicing	$	971		$	976		$	988		$	982		$	995		$	1,011		$	1,019		$	986		$	990		$	1,017		$	1,016
Securities lending	38			46			37			37			43			49			38			46			50			52			51
Issuer services	229			231			315			193			232			234			313			199			244			234			337
Clearing services	325			326			337			347			344			347			345			339			350			350			349
Treasury services	136			141			142			145			137			144			137			137			131			139			137
Total investment services fees	1,699			1,720			1,819			1,704			1,751			1,785			1,852			1,707			1,765			1,792			1,890
Investment management and performance fees (a)	843			883			881			885			867			878			829			864			812			830			860
Foreign exchange and other trading revenue	136			130			153			151			229			187			179			173			175			182			183
Distribution and servicing	43			43			44			43			41			39			41			41			39			43			43
Financing-related fees	38			44			44			43			40			58			71			51			54			57			58
Investment and other income (a)	102			142			890			78			60			104			59			93			105			74			92
Total fee revenue (a)	$	2,861		$	2,962		$	3,831		2,904			2,988			3,051			3,031			2,929			2,950			2,978			3,126
Net securities gains	22			18			20			31			24			16			22			21			20			21			24
Total fee and other revenue (a)	$	2,883		$	2,980		$	3,851		$	2,935		$	3,012		$	3,067		$	3,053		$	2,950		$	2,970		$	2,999		$	3,150
Fee revenue as a percentage of total revenue	79		%	79		%	83		%	79		%	79		%	79		%	81		%	79		%	80		%	79		%	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 - 11 Quarter Trend

	2014																				2015
(dollar amounts in millions)	March 31					June 30					Sept. 30					Dec. 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)	$	41,617		0.71	%	$	41,424		0.74	%	$	34,882		0.66	%	$	24,623		0.49	%	$	22,071		0.56	%	$	20,235		0.56	%
Interest-bearing deposits with Federal Reserve & other central banks	74,399			0.25		85,546			0.26		88,713			0.23		97,440			0.22		81,160			0.23		81,846			0.21
Federal funds sold and securities purchased under resale agreements	11,118			0.61		13,387			0.58		15,683			0.61		18,536			0.56		20,416			0.59		23,545			0.61
Margin loans	15,840			1.07		17,050			1.05		18,108			1.04		18,897			1.01		20,051			1.00		20,467			1.01
Non-margin loans:
Domestic offices	22,002			2.31		22,566			2.30		23,826			2.20		25,103			2.20		25,256			2.14		26,716			2.06
Foreign offices	13,805			1.26		13,833			1.34		12,901			1.30		12,844			1.21		12,628			1.24		13,893			1.19
Total non-margin loans	35,807			1.90		36,399			1.94		36,727			1.88		37,947			1.86		37,884			1.84		40,609			1.77
Securities:
U.S. government obligations	17,213			1.61		17,462			1.63		23,067			1.38		24,331			1.48		27,454			1.38		28,331			1.42
U.S. government agency obligations	42,710			1.87		43,167			1.67		46,186			1.67		49,106			1.70		52,744			1.68		56,332			1.77
Obligations of states and political subdivisions	6,691			2.50		6,473			2.58		5,830			2.54		5,305			2.61		5,213			2.64		5,021			2.67
Other securities	33,920			1.64		34,318			1.55		36,972			1.37		38,501			1.23		38,065			1.33		38,957			1.24
Trading securities	5,217			2.60		5,532			2.19		5,435			2.36		3,922			2.64		3,046			2.46		3,253			2.63
Total securities	105,751			1.83		106,952			1.71		117,490			1.59		121,165			1.58		126,522			1.57		131,894			1.59
Total interest-earning assets	284,532			1.17		300,758			1.10		311,603			1.05		318,608			1.02		308,104			1.07		318,596			1.08
Allowance for loan losses	(210		)			(197		)			(187		)			(186		)			(191		)			(190		)
Cash and due from banks	5,886					5,064					6,225					4,715					6,204					6,785
Other assets	53,430					52,182					52,526					52,472					51,966					50,808
Assets of consolidated investment funds (a)	11,354					11,405					10,242					9,623					2,328					2,280
Total Assets (a)	$	354,992				$	369,212				$	380,409				$	385,232				$	368,411				$	378,279
Liabilities and total equity
Interest-bearing liabilities:
Money market rate accounts and demand deposit accounts	$	9,333		0.11	%	$	7,583		0.13	%	$	7,886		0.14	%	$	8,869		0.12	%	$	10,021		0.12	%	$	10,322		0.13	%
Savings	1,034			0.25		1,185			0.27		1,258			0.28		1,262			0.30		1,429			0.30		1,326			0.27
Other time deposits	41,544			0.04		42,824			0.04		41,248			0.04		41,507			0.04		43,259			0.04		46,807			0.03
Foreign offices	101,075			0.06		111,082			0.06		113,841			0.05		111,511			0.02		104,811			0.03		112,261			—
Total interest-bearing deposits	152,986			0.06		162,674			0.06		164,233			0.06		163,149			0.03		159,520			0.04		170,716			0.02
Federal funds purchased and securities sold under repurchase agreements	14,505			(0.13	)	19,030			(0.05	)	20,620			(0.07	)	20,285			(0.05	)	13,877			(0.09	)	16,732			(0.02	)
Trading Liabilities	1,978			1.59		2,993			0.97		2,806			0.84		1,024			1.44		795			1.07		632			1.84
Other borrowed funds	1,137			0.47		3,242			0.23		4,587			0.15		5,270			0.25		2,108			0.50		3,795			0.37
Payables to customers and broker-dealers	8,883			0.09		8,916			0.09		9,705			0.10		10,484			0.08		10,932			0.07		11,234			0.07
Long-term debt	20,420			1.09		20,361			1.16		20,429			1.12		21,187			1.27		20,199			1.21		20,625			0.99
Total interest-bearing liabilities	199,909			0.17		217,216			0.17		222,380			0.16		221,399			0.16		207,431			0.15		223,734			0.12
Total noninterest-bearing deposits	81,430					77,820					82,334					85,330					89,592					84,890
Other liabilities	24,608					24,854					27,369					30,743					32,341					29,840
Liabilities and obligations of consolidated investment funds (a)	10,128					10,180					8,879					8,101					1,004					857
Total The Bank of New York Mellon Corporation Shareholders' Equity	37,851					38,127					38,313					38,421					37,048					37,829
Noncontrolling interest (a)	1,066					1,015					1,134					1,238					995					1,129
Total liabilities and shareholders' equity (a)	$	354,992				$	369,212				$	380,409				$	385,232				$	368,411				$	378,279
Net interest margin - Taxable equivalent basis				1.05	%				0.98	%				0.94	%				0.91	%				0.97	%				1.00	%

(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.

5

THE BANK OF NEW YORK MELLON CORPORATION - Average Balances and Interest Rates - 11 Quarter Trend (continued)

	2015										2016
(dollar amounts in millions)	Sept. 30					Dec. 31					March 31					June 30					Sept. 30
	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)	$	20,549		0.45	%	$	19,301		0.45	%	$	14,909		0.69	%	$	14,394		0.68	%	$	14,066		0.74	%
Interest-bearing deposits with Federal Reserve & other central banks	84,175			0.20		84,880			0.18		89,092			0.28		97,788			0.30		74,102			0.20
Federal funds sold and securities purchased under resale agreements	25,366			0.61		24,147			0.69		23,623			0.84		25,813			0.87		26,376			0.93
Margin loans	19,839			1.05		19,321			1.09		18,907			1.34		18,226			1.40		18,132			1.48
Non-margin loans:
Domestic offices	27,411			2.15		27,751			2.06		28,506			2.21		29,413			2.25		30,534			2.22
Foreign offices	14,407			1.13		14,892			1.17		13,783			1.39		12,645			1.57		12,912			1.45
Total non-margin loans	41,818			1.80		42,643			1.75		42,289			1.95		42,058			2.04		43,446			1.99
Securities
U.S. government obligations	23,935			1.52		23,955			1.53		24,479			1.50		24,571			1.50		25,279			1.49
U.S. government agency obligations	55,624			1.76		55,441			1.81		55,966			1.79		56,050			1.68		56,464			1.70
Obligations of states and political subdivisions	4,465			2.81		4,164			2.80		3,979			2.89		3,778			2.90		3,598			2.98
Other securities	37,164			1.28		35,972			1.25		34,114			1.22		33,603			1.24		33,064			1.23
Trading securities	2,737			2.74		2,786			2.79		3,320			2.16		2,152			2.45		2,176			2.62
Total securities	123,925			1.63		122,318			1.65		121,858			1.62		120,154			1.57		120,581			1.58
Total interest-earning assets	315,672			1.08		312,610			1.08		310,678			1.16		318,433			1.14		296,703			1.19
Allowance for loan losses	(184		)			(181		)			(157		)			(163		)			(165		)
Cash and due from banks	6,140					5,597					3,879					4,141					4,189
Other assets	49,700					48,849					48,845					50,563					49,463
Assets of consolidated investment funds (a)	2,125					1,715					1,309					1,246					1,040
Total Assets (a)	$	373,453				$	368,590				$	364,554				$	374,220				$	351,230
Liabilities and total equity
Interest-bearing liabilities:
Money market rate accounts and demand deposit accounts	$	10,623		0.13	%	$	9,292		0.12	%	$	8,249		0.11	%	$	9,070		0.13	%	$	10,027		0.14	%
Savings	1,279			0.27		1,217			0.27		1,235			0.27		1,175			0.39		1,201			0.41
Other time deposits	43,529			0.04		43,061			0.03		42,678			0.04		46,629			0.06		45,186			0.07
Foreign offices	114,322			—		106,764			—		109,855			0.03		108,248			0.01		98,695			(0.08	)
Total interest-bearing deposits	169,753			0.02		160,334			0.01		162,017			0.04		165,122			0.03		155,109			(0.02	)
Federal funds purchased and securities sold under repurchase agreements	14,796			(0.04	)	20,349			(0.03	)	18,689			0.20		18,204			0.28		9,585			0.24
Trading Liabilities	475			1.42		638			1.34		551			1.43		662			0.66		735			1.11
Other borrowed funds	2,823			0.35		733			1.13		781			0.96		4,628			0.48		2,047			0.53
Payables to customers and broker-dealers	11,504			0.06		12,904			0.06		16,801			0.09		16,935			0.05		16,873			0.07
Long-term debt	21,070			1.21		21,418			1.19		21,556			1.57		22,838			1.54		23,930			1.54
Total interest-bearing liabilities	220,421			0.14		216,376			0.14		220,395			0.21		228,389			0.21		208,279			0.19
Total noninterest-bearing deposits	85,046					85,878					82,944					84,033					81,619
Other liabilities	27,880					26,530					22,300					22,345					21,343
Liabilities and obligations of consolidated investment funds (a)	841					629					259					253					238
Total The Bank of New York Mellon Corporation Shareholders' Equity	38,140					38,216					37,804					38,379					39,051
Noncontrolling interest (a)	1,125					961					852					821					700
Total liabilities and shareholders' equity (a)	$	373,453				$	368,590				$	364,554				$	374,220				$	351,230
Net interest margin - Taxable equivalent basis				0.98	%				0.99	%				1.01	%				0.98	%				1.06	%

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 - 11 Quarter Trend

	2014									2015									2016
(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
Staff	$	1,511		$	1,439	$	1,477	$	1,418	$	1,485		$	1,434	$	1,437	$	1,481	$	1,459	$	1,412	$	1,467
Professional, legal and other purchased services	312			314		323		390		302			299		301		328		278		290		292
Software and equipment	237			236		234		235		228			228		226		225		219		223		215
Net occupancy	154			152		154		150		151			149		152		148		142		152		143
Distribution and servicing	107			112		107		102		98			96		95		92		100		102		105
Business development	64			68		61		75		61			72		59		75		57		65		52
Sub-custodian	68			81		67		70		70			75		65		60		59		70		59
Other	223			347		250		211		242			250		268		201		241		240		231
Amortization of intangible assets	75			75		75		73		66			65		66		64		57		59		61
Merger & integration, litigation and restructuring charges	(12		)	122		220		800		(3		)	59		11		18		17		7		18
Total noninterest expense	$	2,739		$	2,946	$	2,968	$	3,524	$	2,700		$	2,727	$	2,680	$	2,692	$	2,629	$	2,620	$	2,643
Memo:
Total noninterest expense excluding amortization of intangible assets and M&I, litigation and restructuring charges (recoveries), and the charge (recovery) related to investment management funds, net of incentives - Non-GAAP (a)	$	2,681		$	2,640	$	2,673	$	2,651	$	2,637		$	2,603	$	2,603	$	2,610	$	2,555	$	2,554	$	2,564
Full-time employees at period-end	51,400			51,100		50,900		50,300		50,500			50,700		51,300		51,200		52,100		52,200		52,300
(a) See "Appendix - GAAP to Non-GAAP Reconciliations" beginning on page 17 for the reconciliation of Non-GAAP measures.

7

THE BANK OF NEW YORK MELLON CORPORATION

ASSETS UNDER MANAGEMENT, CUSTODY AND/OR ADMINISTRATION AND SECURITIES LENDING - 11 Quarter Trend

	2014												2015												2016
(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
Assets under management at period end: (a)
Institutional	$	1,092		$	1,084		$	1,106		$	1,164		$	1,188		$	1,163		$	1,129		$	1,127		$	1,155		$	1,182		$	1,234
Mutual Funds	415			440			430			438			445			454			419			420			405			398			396
Private Client	85			85			84			84			84			83			77			78			79			84			85
Assets under management	$	1,592		$	1,609		$	1,620		$	1,686		$	1,717		$	1,700		$	1,625		$	1,625		$	1,639		$	1,664		$	1,715		(b)
AUM at period end, by product type: (a)
Equity	17		%	17		%	16		%	15		%	15		%	15		%	14		%	14		%	14		%	14		%	13		%
Fixed income	13			13			13			12			12			13			13			13			13			13			14
Index	21			22			21			21			22			21			20			20			19			18			18
Liability-driven investments (c)	27			27			28			30			30			30			32			32			33			34			35
Alternative investments	4			4			4			4			4			4			4			4			4			4			4
Cash	18			17			18			18			17			17			17			17			17			17			16
Total AUM	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%	(b)
Assets under custody and/or administration at period end (in trillions) (d)	$	27.9		$	28.5		$	28.3		$	28.5		$	28.5		$	28.6		$	28.5		$	28.9		$	29.1		$	29.5		$	30.5		(b)
Market value of securities on loan at period end (e)	$	264		$	280		$	282		$	289		$	291		$	283		$	288		$	277		$	300		$	278		$	288
Key Market Metrics
S&P 500 Index (f)	1872			1960			1972			2059			2068			2063			1920			2044			2060			2099			2168
S&P 500 Index - daily average	1835			1900			1976			2009			2064			2102			2027			2052			1951			2075			2162
FTSE 100 Index (f)	6598			6744			6623			6566			6773			6521			6062			6242			6175			6504			6899
FTSE 100 Index-daily average	6680			6764			6756			6526			6793			6920			6399			6271			5988			6204			6765
MSCI EAFE (f)	1916			1972			1846			1775			1849			1842			1644			1716			1652			1608			1702
MSCI EAFE-daily average	1893			1942			1922			1796			1818			1905			1785			1732			1593			1648			1677
Barclays Capital Global Aggregate BondSM Index (f)(g)	365			376			361			357			348			342			346			342			368			382			386
NYSE & NASDAQ Share Volume (in billions)	196			187			173			198			187			185			206			198			218			203			186
JP Morgan G7 Volatility Index - daily average (h)	7.80			6.22			6.21			8.54			10.40			10.06			9.93			9.49			10.60			11.12			10.19
Average Fed Funds effective rate	0.07		%	0.09		%	0.09		%	0.10		%	0.11		%	0.13		%	0.13		%	0.16		%	0.36		%	0.37		%	0.39		%
Foreign exchange rates vs. U.S. dollar:
British pound (f)	$	1.67		$	1.71		$	1.62		$	1.56		$	1.48		$	1.57		$	1.52		$	1.48		$	1.44		$	1.34		$	1.30
British pound - average rate	1.66			1.68			1.67			1.58			1.51			1.53			1.55			1.52			1.43			1.43			1.31
Euro (f)	1.38			1.37			1.26			1.22			1.07			1.11			1.12			1.09			1.14			1.11			1.12
Euro - average rate	1.37			1.37			1.33			1.25			1.13			1.11			1.11			1.10			1.10			1.13			1.12
(a) Excludes securities lending cash management assets and assets managed in the Investment Services business and the Other segment.  In the third quarter of 2015, 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, 2014, June 30, 2014 and Sept. 30, 2014, $1.1 trillion at Dec. 31, 2014, March 31, 2015, and June 30, 2015, $1.0 trillion at Sept. 30, 2015 and Dec. 31, 2015, and $1.1 trillion at March 31, 2016 and June 30, 2016 and $1.2 trillion at Sept. 30, 2016.
(e) Represents the total amount of securities on loan managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent, on behalf of CIBC Mellon clients, which totaled $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, $55 billion at Dec. 31, 2015, $56 billion at March 31, 2016 and June 30, 2016 and $64 billion at Sept. 30, 2016.
(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 - 11 Quarter Trend

	2014												2015												2016
(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
Assets under management at beginning of period (a)	$	1,557		$	1,592		$	1,609		$	1,620		$	1,686		$	1,717		$	1,700		$	1,625		$	1,625		$	1,639		$	1,664
Net inflows (outflows):
Long-term:
Equity	(1		)	(5		)	(2		)	(5		)	(5		)	(13		)	(4		)	(9		)	(3		)	(2		)	(3		)
Fixed income	—			—			—			4			3			(2		)	(3		)	1			—			(2		)	—
Liability-driven investments (b)	20			(17		)	19			24			8			5			11			11			14			15			4
Alternative investments	2			2			—			2			1			3			1			2			1			1			2
Total long-term active inflows (outflows)	21			(20		)	17			25			7			(7		)	5			5			12			12			3
Index	—			7			(3		)	1			8			(9		)	(10		)	(16		)	(11		)	(17		)	(2		)
Total long-term inflows (outflows)	21			(13		)	14			26			15			(16		)	(5		)	(11		)	1			(5		)	1
Short-term:
Cash	(7		)	(17		)	18			6			1			(11		)	(10		)	2			(9		)	4			(1		)
Total net inflows (outflows)	14			(30		)	32			32			16			(27		)	(15		)	(9		)	(8		)	(1		)	—
Net market impact / Other	17			31			15			59			32			(29		)	(35		)	24			41			71			80
Net currency impact	4			16			(36		)	(25		)	(35		)	39			(25		)	(15		)	(19		)	(47		)	(29		)
Acquisitions	—			—			—			—			18			—			—			—			—			2			—
Assets under management at period end (a)	$	1,592		$	1,609		$	1,620		$	1,686		$	1,717		$	1,700		$	1,625		$	1,625		$	1,639		$	1,664		$	1,715		(c)
(a) Excludes securities lending cash management assets and assets managed in the Investment Services business and the Other segment. In the third quarter of 2015, 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 - 11 Quarter Trend

	2014												2015												2016
(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
Revenue:
Investment management fees:
Mutual funds	$	299		$	311		$	315		$	306		$	301		$	312		$	301		$	294		$	300		$	304		$	309
Institutional clients	359			373			370			364			365			363			347			350			334			344			362
Wealth management	153			156			158			157			159			160			156			155			152			160			166
Total investment management fees (a)	811			840			843			827			825			835			804			799			786			808			837
Performance fees	20			29			22			40			15			20			7			55			11			9			8
Investment management and performance fees	831			869			865			867			840			855			811			854			797			817			845
Distribution and servicing	39			39			40			39			38			38			37			39			46			49			49
Other (a)	12			43			11			2			41			17			(5		)	22			(31		)	(10		)	(18		)
Total fee and other revenue (a)	882			951			916			908			919			910			843			915			812			856			876
Net interest revenue	69			67			69			69			75			77			83			84			83			82			82
Total revenue	951			1,018			985			977			994			987			926			999			895			938			958
Provision for credit losses	(1		)	1			—			—			(1		)	3			1			(4		)	(1		)	1			—
Noninterest expense (ex. intangible amortization and the charge (recovery) related to investment management funds, net of incentives)	680			711			712			714			708			700			665			689			660			684			680
Income before taxes (ex. intangible amortization and the charge (recovery) related to investment management funds, net of incentives)	272			306			273			263			287			284			260			314			236			253			278
Charge (recovery) related to investment management funds, net of incentives	(5		)	109			—			—			—			—			—			—			—			—			—
Amortization of intangible assets	30			30			30			28			24			25			24			24			19			19			22
Income before taxes	$	247		$	167		$	243		$	235		$	263		$	259		$	236		$	290		$	217		$	234		$	256
Average assets	$	39,333		$	37,619		$	36,542		$	37,163		$	31,361		$	30,414		$	30,960		$	30,982		$	29,971		$	30,229		$	30,392
Assets under management at period end (in billions) (b)	$	1,592		$	1,609		$	1,620		$	1,686		$	1,717		$	1,700		$	1,625		$	1,625		$	1,639		$	1,664		$	1,715		(c)
Pre-tax operating margin	26		%	16		%	25		%	24		%	26		%	26		%	25		%	29		%	24		%	25		%	27		%
Adjusted pre-tax operating margin - Non-GAAP (d)	35		%	36		%	33		%	33		%	34		%	34		%	34		%	36		%	30		%	31		%	33		%
(a)  Total fee and other revenue includes the impact of the consolidated investment management funds, net of noncontrolling interests. 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 and the Other segment. In the third quarter of 2015, 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, provision for credit losses 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. Also, see "Appendix - GAAP to Non-GAAP Reconciliations" beginning on page 17 for the reconciliation of Non-GAAP measures.

10

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT SERVICES BUSINESS - 11 Quarter Trend

	2014												2015												2016
(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
Revenue:
Investment services fees
Asset servicing - ex. securities lending	$	955		$	958		$	971		$	964		$	979		$	995		$	1,001		$	970		$	974		$	1,001		$	997
Securities lending revenue	33			39			31			32			38			43			33			39			42			42			42
Issuer services	228			231			314			193			231			234			312			199			244			233			336
Clearing services	323			324			336			346			342			346			345			337			348			350			347
Treasury services	134			140			139			142			135			141			135			135			129			137			136
Total investment services fees	1,673			1,692			1,791			1,677			1,725			1,759			1,826			1,680			1,737			1,763			1,858
Foreign Exchange and other trading revenue	164			148			164			167			212			181			179			150			168			161			177
Other (a)	86			117			90			113			92			117			129			127			125			130			148
Total fee and other revenue	1,923			1,957			2,045			1,957			2,029			2,057			2,134			1,957			2,030			2,054			2,183
Net interest revenue	625			630			613			600			629			667			662			664			679			690			715
Total revenue	2,548			2,587			2,658			2,557			2,658			2,724			2,796			2,621			2,709			2,744			2,898
Provision for credit losses	(7		)	(8		)	7			10			7			6			7			8			14			(7		)	1
Noninterest expenses (ex. intangible amortization)	1,815			1,856			1,863			2,532			1,822			1,874			1,853			1,791			1,770			1,819			1,812
Income before taxes (ex. intangible amortization)	740			739			811			15			829			844			936			822			925			932			1,085
Amortization of intangible assets	44			44			44			43			41			40			41			40			38			40			39
Income before taxes	$	696		$	695		$	767		$	(28	)	$	788		$	804		$	895		$	782		$	887		$	892		$	1,046
Average loans	$	38,077		$	39,737		$	40,344		$	42,342		$	45,071		$	45,822		$	46,222		$	45,844		$	45,004		$	43,786		$	44,329
Average assets	$	264,875		$	269,636		$	272,331		$	278,902		$	287,321		$	292,264		$	285,195		$	281,766		$	273,289		$	277,225		$	275,714
Average deposits	$	220,393		$	225,316		$	226,576		$	229,613		$	235,524		$	238,404		$	232,250		$	229,241		$	215,707		$	221,998		$	220,316
Pre-tax operating margin	27		%	27		%	29		%	(1		)%	30		%	30		%	32		%	30		%	33		%	33		%	36		%
Pre-tax operating margin (ex. provision for credit losses and intangible amortization)	29		%	28		%	30		%	1		%	31		%	31		%	34		%	32		%	35		%	34		%	37		%
Investment services fees as a percentage of noninterest expense (b)	92		%	91		%	96		%	66		%	95		%	94		%	99		%	94		%	98		%	97		%	103		%
Assets under custody and/or administration at period end (in trillions) (c)	$	27.9		$	28.5		$	28.3		$	28.5		$	28.5		$	28.6		$	28.5		$	28.9		$	29.1		$	29.5		$	30.5		(d)
Market value of securities on loan at period end (in billions) (e)	$	264		$	280		$	282		$	289		$	291		$	283		$	288		$	277		$	300		$	278		$	288
(a) Other revenue includes investment management fees, financing-related fees, distribution and servicing revenue, and investment and other income.
(b) Investment services fees as a percentage of non-interest expense (ex. amortization of intangible assets) was lower in 4Q14 primarily reflecting 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, 2014, June 30, 2014 and Sept. 30, 2014, $1.1 trillion at Dec. 31, 2014, March 31, 2015, and June 30, 2015, $1.0 trillion at Sept. 30, 2015 and Dec. 31, 2015, $1.1 trillion at March 31, 2016 and June 30, 2016 and $1.2 trillion at Sept. 30, 2016.
(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 on behalf of CIBC Mellon clients, which totaled $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, $55 billion at Dec. 31, 2015, $56 billion at March 31, 2016 and at June 30, 2016 and $64 billion at Sept. 30, 2016.

11

THE BANK OF NEW YORK MELLON

OTHER SEGMENT- 11 Quarter Trend

	2014												2015												2016
(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
Revenue:
Fee and other revenue	$	94		$	101		$	906		$	88		$	85		$	103		$	59		$	89		$	129		$	95		$	100
Net interest revenue (expense)	34			22			39			43			24			35			14			12			4			(5		)	(23		)
Total revenue	128			123			945			131			109			138			73			101			133			90			77
Provision for credit losses	(10		)	(5		)	(3		)	(9		)	(4		)	(15		)	(7		)	159			(3		)	(3		)	(20		)
Noninterest expense (ex. amortization of intangible assets, M&I and restructuring (recoveries) charges)	174			75			261			205			108			79			97			150			141			53			88
Income (loss) before taxes (ex. amortization of intangible assets, M&I and restructuring (recoveries) charges)	$	(36	)	$	53		$	687		$	(65	)	$	5		$	74		$	(17	)	$	(208	)	$	(5	)	$	40		$	9
Amortization of intangible assets	1			1			1			2			1			—			1			—			—			—			—
M&I and restructuring (recoveries) charges	—			120			57			—			(4		)	8			(2		)	(4		)	(1		)	3			—
Income (loss) before taxes	$	(37	)	$	(68	)	$	629		$	(67	)	$	8		$	66		$	(16	)	$	(204	)	$	(4	)	$	37		$	9
Average loans and leases	$	3,495		$	3,340		$	3,719		$	3,378		$	1,230		$	2,956		$	2,656		$	2,673		$	1,917		$	1,703		$	1,941
Average assets	$	50,784		$	55,601		$	57,298		$	69,167		$	49,729		$	55,601		$	57,298		$	55,842		$	61,294		$	66,766		$	45,124

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	$	89		$	91		$	91		$	4,098		$	3,983		$	3,814		$	—			$	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	98			100			93			6,990			6,833			6,703			7				9				17				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			722			643			714			59				(50		)		(48		)		768				570				674
Distribution and servicing	152			157			167			10			11			8			—				5				5				162				173				180
Financing-related fees	(1		)	1			5			222			168			162			(1		)		—				5				220				169				172
Investment and other income	(10		)	(11		)	(19		)	163			153			143			166			(a)	1,083			(a)	380			(a)	319			(a)	1,225			(a)	504			(a)
Total fee revenue	3,586			3,656			3,589			8,177			7,882			7,793			254			(a)	1,099			(a)(b)	436			(a)(b)	12,017			(a)(b)	12,637			(a)(b)	11,818			(a)(b)
Net securities gains (losses)	1			1			6			—			—			8			82				90				127				83				91				141
Total fee and other revenue	3,587			3,657			3,595			8,177			7,882			7,801			336			(a)	1,189			(a)(b)	563			(a)(b)	12,100			(a)(b)	12,728			(a)(b)	11,959			(a)(b)
Net interest revenue (expense)	319			274			259			2,622			2,468			2,665			85				138				85				3,026				2,880				3,009
Total revenue	3,906			3,931			3,854			10,799			10,350			10,466			421			(a)	1,327			(a)	648			(a)	15,126			(a)	15,608			(a)	14,968			(a)
Provision for credit losses	(1		)	—			(6		)	28			(21		)	9			133				(27		)		(38		)		160				(48		)		(35		)
Noninterest expenses (ex. intangible amortization)	2,762			2,921			2,749			7,340			8,066			7,316			432				892				899				10,534				11,879				10,964
Income (loss) before taxes (ex. intangible amortization)	1,145			1,010			1,111			3,431			2,305			3,141			(144		)	(a)	462			(a)(b)	(213		)	(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	$	1,048		$	892		$	968		$	3,269		$	2,130		$	2,947		$	(146	)	(a)	$	457		(a)(b)	$	(218	)	(a)(b)	$	4,171		(a)(b)	$	3,479		(a)(b)	$	3,697		(a)(b)
Average loans	$	12,545		$	10,589		$	9,361		$	45,743		$	40,137		$	34,673		$	2,384			$	3,484			$	4,282			$	60,672			$	54,210			$	48,316
Average assets	$	30,928		$	37,655		$	38,420		$	286,617		$	271,477		$	252,272		$	54,642			$	63,434			$	51,619			$	372,187			$	372,566			$	342,311
Average deposits	$	15,160		$	14,154		$	13,753		$	233,833		$	225,503		$	210,432		$	2,441			$	2,882			$	1,511			$	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		%	21		%	28		%	N/M				N/M				N/M				28		%		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 and the Other segment. Also excludes assets under management related to Newton's private client business that was sold in September 2013. In the third quarter of 2015, 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 - 11 Quarter Trend

	2014												2015												2016
(dollar amounts in millions)	March 31			June 30			Sept. 30			Dec. 31			March 31			June 30			Sept. 30			Dec. 31			March 31			June 30			Sept. 30
Nonperforming loans:
Other residential mortgages	$	107		$	105		$	113		$	112		$	111		$	110		$	103		$	102		$	99		$	97		$	93
Wealth management loans and mortgages	12			12			13			12			12			11			12			11			11			10			7
Commercial real estate	4			4			4			1			1			1			1			2			2			2			1
Lease financing	13			13			13			—			—			—			—			—			5			4			4
Foreign	7			4			—			—			—			—			—			—			—			—			—
Financial institutions	—			—			—			—			—			—			—			171			171			171			—
Total nonperforming loans	143			138			143			125			124			122			116			286			288			284			105
Other assets owned	3			4			4			3			4			5			7			6			4			5			4
Total nonperforming assets (a)	$	146		$	142		$	147		$	128		$	128		$	127		$	123		$	292		$	292		$	289		$	109
Nonperforming assets ratio	0.27		%	0.24		%	0.26		%	0.22		%	0.21		%	0.20		%	0.20		%	0.46		%	0.48		%	0.45		%	0.17		%
Nonperforming assets ratio excluding margin loans	0.39		%	0.34		%	0.37		%	0.33		%	0.30		%	0.30		%	0.28		%	0.67		%	0.69		%	0.63		%	0.23		%
Allowance for loan losses/nonperforming loans	138.5			135.5			133.6			152.8			153.2			150.0			156.0			54.9			56.3			55.6			141.0
Allowance for loan losses/nonperforming assets	135.6			131.7			129.9			149.2			148.4			144.1			147.2			53.8			55.5			54.7			135.8
Total allowance for credit losses/nonperforming loans	228.0			225.4			201.4			224.0			228.2			227.9			241.4			96.2			99.7			98.6			261.0
Total allowance for credit losses/nonperforming assets	223.3			219.0			195.9			218.8			221.1			218.9			227.6			94.2			98.3			96.9			251.4
(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 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 - 11 Quarter Trend

	2014												2015												2016
(dollar amounts in millions)	March 31			June 30			Sept. 30			Dec. 31			March 31			June 30			Sept. 30			Dec. 31			March 31			June 30			Sept. 30
Allowance for credit losses:
Allowance for credit losses	$	210		$	198		$	187		$	191		$	191		$	190		$	183		$	181		$	157		$	162		$	158
Allowance for lending-related commitments	134			128			124			97			89			93			95			99			118			125			122
Allowance for credit losses - beginning of period	$	344		$	326		$	311		$	288		$	280		$	283		$	278		$	280		$	275		$	287		$	280
Net (charge-offs) recoveries:
Charge-offs	(1		)	(4		)	(5		)	(10		)	—			—			—			(170		)	—			—			(1		)
Recoveries	1			1			1			1			1			1			1			2			2			2			14
Total Net (charge-offs) recoveries	—			(3		)	(4		)	(9		)	1			1			1			(168		)	2			2			13
Provision for credit losses	(18		)	(12		)	(19		)	1			2			(6		)	1			163			10			(9		)	(19		)
Allowance for credit losses - end of period	$	326		$	311		$	288		$	280		$	283		$	278		$	280		$	275		$	287		$	280		$	274
Allowance for loan losses
Allowance for loan losses	$	198		$	187		$	191		$	191		$	190		$	183		$	181		$	157		$	162		$	158		$	148
Allowance for lending-related commitments	128			124			97			89			93			95			99			118			125			122			126
Allowance for credit losses - end of period	$	326		$	311		$	288		$	280		$	283		$	278		$	280		$	275		$	287		$	280		$	274
Allowance for loan losses as a percentage of total loans	0.37		%	0.32		%	0.33		%	0.32		%	0.31		%	0.29		%	0.29		%	0.25		%	0.26		%	0.25		%	0.22		%

15

THE BANK OF NEW YORK MELLON CORPORATION

Quarterly Financial Trends

October 20, 2016

Notes:

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

In the first quarter of 2016, results of credit-related activities were reclassified from the Other segment to the Investment Services segment. Also, concurrent with this reclassification, the provision for credit losses associated with the respective credit portfolios is now reflected in each business segment. All prior periods have been restated.

Beginning in the first quarter of 2016, we revised the net interest revenue for our business to reflect adjustments to our transfer pricing methodology to better reflect the value of certain deposits. This change did not impact the consolidated results.

Beginning in the first quarter of 2016, we refined the expense allocation process for indirect expenses to simplify the expenses recorded in the Other segment to include only expenses not directly attributable to the Investment Management and Investment Services operations. This change did not impact the consolidated 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, impairment charge/(recovery) related to Sentinel, 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. Also, see "Appendix - GAAP to Non-GAAP Reconciliations" beginning on page 17 for the reconciliation of Non-GAAP measures. 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-Q for the quarter ended June 30, 2016 or other reports filed with the SEC.

16

Appendix - GAAP to Non-GAAP Reconciliations

17

THE BANK OF NEW YORK MELLON CORPORATION

SUPPLEMENTAL INFORMATION – EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES

BNY Mellon has included in these Quarterly Financial Trends certain Non-GAAP financial measures based on tangible common shareholders’ equity. BNY Mellon believes that the ratio of tangible common shareholders’ equity to tangible assets of operations is a measure of capital strength that provides additional useful information to investors. The tangible common shareholders’ equity ratio, which excludes goodwill and intangible assets net of deferred tax liabilities, includes changes in investment securities valuations which are reflected in total shareholders’ equity. Further, BNY Mellon believes that the return on tangible common equity measure, which excludes goodwill and intangible assets net of deferred tax liabilities, is a useful additional measure for investors because it presents a measure of those assets that can generate income.

BNY Mellon has presented revenue measures which exclude the effect of noncontrolling interests related to consolidated investment management funds, and expense measures which exclude M&I, litigation and restructuring charges and amortization of intangible assets. Operating margin measures, which exclude some or all of these items, as well as the impairment charge/(recovery) related to a court decision regarding Sentinel, are also presented. Operating margin measures may also exclude amortization of intangible assets and the net negative impact of money market fee waivers, net of distribution and servicing expense. BNY Mellon believes that these measures are useful to investors because they permit a focus on period-to-period comparisons, which relate to the ability of BNY Mellon to enhance revenues and limit expenses in circumstances where such matters are within BNY Mellon’s control. The excluded items, in general, relate to certain charges as a result of prior transactions. M&I expenses primarily relate to acquisitions and generally continue for approximately three years after the transaction. Litigation charges represent accruals for loss contingencies that are both probable and reasonably estimable, but exclude standard business-related legal fees. Restructuring charges relate to our streamlining actions, Operational Excellence Initiatives and migrating positions to Global Delivery Centers. Excluding these charges mentioned above permits investors to view expenses on a basis consistent with how management views the business.

The Quarterly Financial Trends revenue measures also exclude the gain on the sale of our equity investment in Wing Hang and the gain on the sale of our One Wall Street building. Expense measures also exclude the charge related to investment management funds, net of incentives.

The presentation of income (loss) from consolidated investment management funds, net of net income (loss) attributable to noncontrolling interests related to the consolidation of certain investment management funds permits investors to view revenue on a basis consistent with how management views the business. BNY Mellon believes that these presentations, as a supplement to GAAP information, give investors a clearer picture of the results of its primary businesses.

18

THE BANK OF NEW YORK MELLON CORPORATION
PRE-TAX OPERATING MARGIN RATIO RECONCILIATION - 11 QUARTER TREND
	2014												2015												2016
(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
Income before income taxes – GAAP	$	926		$	811		$	1,662		$	164		$	1,090		$	1,165		$	1,109		$	871		$	1,091		$	1,165		$	1,317
Less: Net income (loss) attributable to noncontrolling interests of consolidated investment management funds	20			17			23			24			31			37			(5		)	5			(7		)	4			9
Gain on the sale of our equity investment in Wing Hang	—			—			490			—			—			—			—			—			—			—			—
Gain on the sale of our One Wall Street building	—			—			346			—			—			—			—			—			—			—			—
Add: Amortization of intangible assets	75			75			75			73			66			65			66			64			57			59			61
M&I, litigation and restructuring charges (recoveries)	(12		)	122			220			800			(3		)	59			11			18			17			7			18
Impairment charge (recovery) related to Sentinel	—			—			—			—			—			—			—			170			—			—			(13		)
Charge (recovery) related to investment management funds, net of incentives	(5		)	109			—			—			—			—			—			—			—			—			—
Income before income taxes, as adjusted – Non-GAAP (a)	$	964		$	1,100		$	1,098		$	1,013		$	1,122		$	1,252		$	1,191		$	1,118		$	1,172		$	1,227		$	1,374
Fee and other revenue – GAAP	$	2,883		$	2,980		$	3,851		$	2,935		$	3,012		$	3,067		$	3,053		$	2,950		$	2,970		$	2,999		$	3,150
Income (loss) from consolidated investment management funds – GAAP	36			46			39			42			52			40			(22		)	16			(6		)	10			17
Net interest revenue – GAAP	728			719			721			712			728			779			759			760			766			767			774
Total revenue – GAAP	3,647			3,745			4,611			3,689			3,792			3,886			3,790			3,726			3,730			3,776			3,941
Less: Net income (loss) attributable to noncontrolling interests of consolidated investment management funds	20			17			23			24			31			37			(5		)	5			(7		)	4			9
Gain on the sale of our equity investment in Wing Hang	—			—			490			—			—			—			—			—			—			—			—
Gain on the sale of our One Wall Street building	—			—			346			—			—			—			—			—			—			—			—
Total revenue, as adjusted – Non-GAAP (a)	$	3,627		$	3,728		$	3,752		$	3,665		$	3,761		$	3,849		$	3,795		$	3,721		$	3,737		$	3,772		$	3,932
Pre-tax operating margin (b)(c)	25		%	22		%	36		%	4		%	29		%	30		%	29		%	23		%	29		%	31		%	33		%
Pre-tax operating margin – Non-GAAP (a)(b)(c)	27		%	30		%	29		%	28		%	30		%	33		%	31		%	30		%	31		%	33		%	35		%
(a) Non-GAAP information for all periods presented excludes net income (loss) attributable to noncontrolling interests of consolidated investment management funds, amortization of intangible assets and M&I, litigation and restructuring charges. Non-GAAP information for 1Q14 and 2Q14 also excludes charges (recoveries) related to investment management funds, net of incentives. Non-GAAP information for 3Q15 also excludes the gain on the sale of our equity investment in Wing Hang and the gain on the sale of our One Wall Street building. Non-GAAP information for 4Q15 also excludes the impairment charge related to a court decision regarding Sentinel. Non-GAAP information for 3Q16 also excludes a recovery of the previously impaired Sentinel loan.
(b) Income before taxes divided by total revenue.
(c) Our GAAP earnings include tax-advantaged investments such as low income housing, renewable energy, bank-owned life insurance and tax-exempt securities. The benefits of these investments are primarily reflected in tax expense. If reported on a tax-equivalent basis, beginning with 2015, these investments would increase revenue and income before taxes by $64 million for 1Q15, $52 million for 2Q15, $53 million for 3Q15,$73 million for 4Q15, $77 million for 1Q16, $74 million for 2Q16, and $74 million for 3Q16, and would increase our pre-tax operating margin by approximately 1.2% for 1Q15, 0.9% for 2Q15, 1.0% for 3Q15, 1.5% for 4Q15, 1.4% for 1Q16, 1.3% for 2Q16, and 1.2% for 3Q16.

19

THE BANK OF NEW YORK MELLON CORPORATION
RETURN ON TANGIBLE COMMON EQUITY RECONCILIATION - 11 QUARTER TREND
	2014												2015												2016
(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
Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP	$	661		$	554		$	1,070		$	209		$	766		$	830		$	820		$	637		$	804		$	825		$	974
Add:  Amortization of intangible assets	75			75			75			73			66			65			66			64			57			59			61
Less: Tax impact of amortization of intangible assets	26			26			26			26			23			21			23			22			20			21			21
Net income applicable to common shareholders of The Bank of New York Mellon Corporation excluding amortization of intangible assets – Non-GAAP	$	710		$	603		$	1,119		$	256		$	809		$	874		$	863		$	679		$	841		$	863		$	1,014
Average common shareholders’ equity	$	36,289		$	36,565		$	36,751		$	36,859		$	35,486		$	35,516		$	35,588		$	35,664		$	35,252		$	35,827		$	35,767
Less: Average goodwill	18,072			18,149			18,109			17,924			17,756			17,752			17,742			17,673			17,562			17,622			17,463
Average intangible assets	4,422			4,354			4,274			4,174			4,088			4,031			3,962			3,887			3,812			3,789			3,711
Add: Deferred tax liability – tax deductible goodwill (a)	1,306			1,338			1,317			1,340			1,362			1,351			1,379			1,401			1,428			1,452			1,477
Deferred tax liability – intangible assets (a)	1,259			1,247			1,230			1,216			1,200			1,179			1,164			1,148			1,140			1,129			1,116
Average tangible common shareholders’ equity – Non-GAAP	16,360			16,647			16,915			17,317			16,204			16,263			16,427			16,653			16,446			$	16,997		$	17,186
Return on tangible common equity – Non-GAAP (b)	17.6		%	14.5		%	26.2		%	5.9		%	20.3		%	21.5		%	20.8		%	16.2		%	20.6		%	20.4		%	23.5		%
(a) Deferred tax liabilities are based on fully phased-in Basel III rules.
(b) Annualized.

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THE BANK OF NEW YORK MELLON CORPORATION
NONINTEREST EXPENSE RECONCILIATION - 11 QUARTER TREND
	2014									2015									2016
(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
Total noninterest expense -GAAP	$	2,739		$	2,946	$	2,968	$	3,524	$	2,700		$	2,727	$	2,680	$	2,692	$	2,629	$	2,620	$	2,643
Less: Amortization of intangible assets	75			75		75		73		66			65		66		64		57		59		61
M&I, litigation and restructuring charges (recoveries)	(12		)	122		220		800		(3		)	59		11		18		17		7		18
Charge (recovery) related to investment management funds, net of incentives	(5		)	109		—		—		—			—		—		—		—		—		—
Total noninterest expense excluding amortization of intangible assets and M&I, litigation and restructuring charges (recoveries), and the charge (recovery) related to investment management funds, net of incentives - Non-GAAP	$	2,681		$	2,640	$	2,673	$	2,651	$	2,637		$	2,603	$	2,603	$	2,610	$	2,555	$	2,554	$	2,564

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THE BANK OF NEW YORK MELLON CORPORATION
PRE-TAX OPERATING MARGIN - INVESTMENT MANAGEMENT BUSINESS - 11 QUARTER TREND
	2014												2015												2016
(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
Income before income taxes – GAAP	$	247		$	167		$	243		$	235		$	263		$	259		$	236		$	290		$	217		$	234		$	256
Add: Amortization of intangible assets	30			30			30			28			24			25			24			24			19			19			22
Provision for credit losses	(1		)	1			—			—			(1		)	3			1			(4		)	(1		)	1			—
Money market fee waivers	33			30			29			34			33			29			28			23			9			11			11
Charge (recovery) related to investment management funds, net of incentives	(5		)	109			—			—			—			—			—			—			—			—			—
Income before income taxes excluding amortization of intangible assets, provision for credit losses and money market fee waivers and the charge (recovery) related to investment management funds, net of incentives – Non-GAAP	$	304		$	337		$	302		$	297		$	319		$	316		$	289		$	333		$	244		$	265		$	289
Total revenue – GAAP	$	951		$	1,018		$	985		$	977		$	994		$	987		$	926		$	999		$	895		938			$	958
Less: Distribution and servicing expense	106			111			105			101			97			95			94			92			100			102			104
Money market fee waivers benefiting distribution and servicing expense	37			37			36			39			38			37			35			27			23			15			15
Add: Money market fee waivers impacting total revenue	70			67			65			73			71			66			63			50			32			26			26
Total revenue net of distribution and servicing expense and excluding money market fee waivers – Non-GAAP	$	878		$	937		$	909		$	910		$	930		$	921		$	860		$	930		$	804		$	847		$	865
Pre-tax operating margin (a)	26		%	16		%	25		%	24		%	26		%	26		%	25		%	29		%	24		%	25		%	27		%
Pre-tax operating margin excluding amortization of intangible assets, provision for credit losses, money market fee waivers and net of distribution and servicing expense and the charge (recovery) related to investment management funds, net of incentives – Non-GAAP (a)	35		%	36		%	33		%	33		%	34		%	34		%	34		%	36		%	30		%	31		%	33		%
(a) Income before taxes divided by total revenue.

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