The Bank of New York Mellon Corporation (BK) 8-K Bny Mellon Reports Fourth Quarter Earnings of $1.13 Billion or $1.08 Per Common Share

The Bank of New York Mellon Corporation

Quarterly Financial Trends

January 18, 2018

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 - 12 Quarter Trend

	2015												2016												2017
(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	$	1,038		$	1,060		$	1,057		$	1,032		$	1,040		$	1,069		$	1,067		$	1,068		$	1,063		$	1,085		$	1,105		$	1,130
Clearing services	344			347			345			339			350			350			349			355			376			394			383			400
Issuer services	232			234			313			199			244			234			337			211			251			241			288			197
Treasury services	137			144			137			137			131			139			137			140			139			140			141			137
Total investment services fees	1,751			1,785			1,852			1,707			1,765			1,792			1,890			1,774			1,829			1,860			1,917			1,864
Investment management and performance fees (a)	867			878			829			864			812			830			860			848			842			879			901			962
Foreign exchange & other trading revenue	229			187			179			173			175			182			183			161			164			165			173			166
Distribution and servicing	41			39			41			41			39			43			43			41			41			41			40			38
Financing-related fees	40			58			71			51			54			57			58			50			55			53			54			54
Investment and other income (a)	60			104			59			93			105			74			92			70			77			122			63			(198		)
Total fee revenue (a)	2,988			3,051			3,031			2,929			2,950			2,978			3,126			2,944			3,008			3,120			3,148			2,886
Net securities gains	24			16			22			21			20			21			24			10			10			—			19			(26		)
Total fee and other revenue (a)	3,012			3,067			3,053			2,950			2,970			2,999			3,150			2,954			3,018			3,120			3,167			2,860
Income (loss) from consolidated investment management funds (a)	52			40			(22		)	16			(6		)	10			17			5			33			10			10			17
Net interest revenue	728			779			759			760			766			767			774			831			792			826			839			851
Total revenue (a)	3,792			3,886			3,790			3,726			3,730			3,776			3,941			3,790			3,843			3,956			4,016			3,728
Provision for credit losses	2			(6		)	1			163			10			(9		)	(19		)	7			(5		)	(7		)	(6		)	(6		)
Noninterest expense	2,637			2,603			2,603			2,610			2,555			2,554			2,564			2,564			2,582			2,590			2,596			2,874
Amortization of intangible assets	66			65			66			64			57			59			61			60			52			53			52			52
Merger & integration, litigation and restructuring charges	(3		)	59			11			18			17			7			18			7			8			12			6			80
Total noninterest expense	2,700			2,727			2,680			2,692			2,629			2,620			2,643			2,631			2,642			2,655			2,654			3,006
Income before taxes	1,090			1,165			1,109			871			1,091			1,165			1,317			1,152			1,206			1,308			1,368			728
Provision for income taxes	280			276			282			175			283			290			324			280			269			332			348			(453		)
Net income	810			889			827			696			808			875			993			872			937			976			1,020			1,181
Net income (loss) attributable to noncontrolling interest (a)(b)	(31		)	(36		)	6			(3		)	9			(2		)	(6		)	(2		)	(15		)	(1		)	(2		)	(6		)
Preferred stock dividends	(13		)	(23		)	(13		)	(56		)	(13		)	(48		)	(13		)	(48		)	(42		)	(49		)	(35		)	(49		)
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	766		$	830		$	820		$	637		$	804		$	825		$	974		$	822		$	880		$	926		$	983		$	1,126
Earnings per share (c)	$	0.67		$	0.73		$	0.74		$	0.57		$	0.73		$	0.75		$	0.90		$	0.77		$	0.83		$	0.88		$	0.94		$	1.08
Pre-tax operating margin (a)	29		%	30		%	29		%	23		%	29		%	31		%	33		%	30		%	31		%	33		%	34		%	20		%
Adjusted pre-tax operating margin - Non-GAAP (a)(d)	30		%	33		%	31		%	30		%	31		%	33		%	35		%	32		%	33		%	35		%	35		%	23		%
Return on common equity (annualized) - GAAP	8.8		%	9.4		%	9.1		%	7.1		%	9.2		%	9.3		%	10.8		%	9.3		%	10.2		%	10.4		%	10.6		%	12.1		%
Return on tangible common equity (annualized) - Non-GAAP (d)	20.3		%	21.5		%	20.8		%	16.2		%	20.6		%	20.4		%	23.5		%	20.4		%	22.2		%	21.9		%	21.9		%	25.9		%
Percent of non-US total revenue	36		%	36		%	37		%	34		%	33		%	34		%	36		%	34		%	34		%	35		%	36		%	39		%
(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) Primarily attributable to noncontrolling interests related to consolidated investment management funds.
(c) The second quarter of 2015 includes a $0.03 per share charge related to litigation and restructuring. The fourth quarter of 2015 includes an $0.11 per share 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 per share charge related to litigation and restructuring. The third quarter of 2016 also includes a $0.01 per share recovery of the previously impaired Sentinel loan. The first quarter of 2017 includes a $0.03 per share tax benefit on stock compensation. The fourth quarter of 2017 includes a $0.41 per share estimated net benefit related to U.S. tax legislation and a $0.24 charge related to severance, litigation and other charges. The fourth quarter of 2017 other charges include an asset impairment and investment securities losses related to the sale of certain securities.
(d) Non-GAAP excludes net (loss) income attributable to noncontrolling interests related to consolidated investment management funds, M&I, litigation and restructuring charges (recoveries), amortization of intangible assets, the impairment charge related to a court decision regarding Sentinel, and a recovery of the previously impaired Sentinel loan, if applicable. See "Supplemental information - Explanation of GAAP and Non-GAAP financial measures" beginning on page 23 of the Quarterly Earnings Release dated January 18, 2018 for the fourth quarter of 2017 (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.

3

THE BANK OF NEW YORK MELLON CORPORATION

FEE AND OTHER REVENUE - 12 Quarter Trend

	2015												2016												2017
(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	$	995		$	1,011		$	1,019		$	986		$	990		$	1,017		$	1,016		$	1,014		$	1,014		1,037			$	1,058		$	1,079
Securities lending	43			49			38			46			50			52			51			54			49			48			47			51
Clearing services	344			347			345			339			350			350			349			355			376			394			383			400
Issuer services	232			234			313			199			244			234			337			211			251			241			288			197
Treasury services	137			144			137			137			131			139			137			140			139			140			141			137
Total investment services fees	1,751			1,785			1,852			1,707			1,765			1,792			1,890			1,774			1,829			1,860			1,917			1,864
Investment management and performance fees (a)	867			878			829			864			812			830			860			848			842			879			901			962
Foreign exchange and other trading revenue	229			187			179			173			175			182			183			161			164			165			173			166
Distribution and servicing	41			39			41			41			39			43			43			41			41			41			40			38
Financing-related fees	40			58			71			51			54			57			58			50			55			53			54			54
Investment and other income (a)	60			104			59			93			105			74			92			70			77			122			63			(198		)
Total fee revenue (a)	2,988			3,051			3,031			2,929			2,950			2,978			3,126			2,944			3,008			3,120			3,148			2,886
Net securities gains	24			16			22			21			20			21			24			10			10			—			19			(26		)
Total fee and other revenue (a)	$	3,012		$	3,067		$	3,053		$	2,950		$	2,970		$	2,999		$	3,150		$	2,954		$	3,018		$	3,120		$	3,167		$	2,860
Fee revenue as a percentage of total revenue	79		%	79		%	81		%	79		%	79		%	79		%	79		%	78		%	78		%	79		%	78		%	77		%
(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 - 12 Quarter Trend

	2015																				2016
	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
(dollar amounts in millions)
Assets
Interest-earning assets:
Interest-bearing deposits with banks (primarily foreign)	$	22,071		0.56	%	$	20,235		0.56	%	$	20,549		0.45	%	$	19,301		0.45	%	$	14,909		0.69	%	$	14,394		0.68	%
Interest-bearing deposits with Federal Reserve & other central banks	81,160			0.23		81,846			0.21		84,175			0.20		84,880			0.18		89,092			0.28		97,788			0.30
Federal funds sold and securities purchased under resale agreements	20,416			0.59		23,545			0.61		25,366			0.61		24,147			0.69		23,623			0.84		25,813			0.87
Margin loans	20,051			1.00		20,467			1.01		19,839			1.05		19,321			1.09		18,907			1.34		18,226			1.40
Non-margin loans:
Domestic offices	25,256			2.14		26,716			2.06		27,411			2.15		27,751			2.06		28,506			2.21		29,413			2.25
Foreign offices	12,628			1.24		13,893			1.19		14,407			1.13		14,892			1.17		13,783			1.39		12,645			1.57
Total non-margin loans	37,884			1.84		40,609			1.77		41,818			1.80		42,643			1.75		42,289			1.95		42,058			2.04
Securities:
U.S. government obligations	27,454			1.38		28,331			1.42		23,935			1.52		23,955			1.53		24,479			1.50		24,571			1.50
U.S. government agency obligations	52,744			1.68		56,332			1.77		55,624			1.76		55,441			1.81		55,966			1.79		56,050			1.68
Obligations of states and political subdivisions	5,213			2.64		5,021			2.67		4,465			2.81		4,164			2.80		3,979			2.89		3,778			2.90
Other securities	38,065			1.33		38,957			1.24		37,164			1.28		35,972			1.25		34,114			1.22		33,603			1.24
Trading securities	3,046			2.46		3,253			2.63		2,737			2.74		2,786			2.79		3,320			2.16		2,152			2.45
Total securities	126,522			1.57		131,894			1.59		123,925			1.63		122,318			1.65		121,858			1.62		120,154			1.57
Total interest-earning assets	308,104			1.07		318,596			1.08		315,672			1.08		312,610			1.08		310,678			1.16		318,433			1.14
Allowance for loan losses	(191		)			(190		)			(184		)			(181		)			(157		)			(163		)
Cash and due from banks	6,204					6,785					6,140					5,597					3,879					4,141
Other assets	51,966					50,808					49,700					48,849					48,845					50,563
Assets of consolidated investment funds (a)	2,328					2,280					2,125					1,715					1,309					1,246
Total Assets (a)	$	368,411				$	378,279				$	373,453				$	368,590				$	364,554				$	374,220
Liabilities and total equity
Interest-bearing liabilities:
Money market rate accounts and demand deposit accounts	$	10,021		0.12	%	$	10,322		0.13	%	$	10,623		0.13	%	$	9,292		0.12	%	$	8,249		0.11	%	$	9,070		0.13	%
Savings	1,429			0.30		1,326			0.27		1,279			0.27		1,217			0.27		1,235			0.27		1,175			0.39
Other time deposits	43,259			0.04		46,807			0.03		43,529			0.04		43,061			0.03		42,678			0.04		46,629			0.06
Foreign offices	104,811			0.03		112,261			—		114,322			—		106,764			—		109,855			0.03		108,248			0.01
Total interest-bearing deposits	159,520			0.04		170,716			0.02		169,753			0.02		160,334			0.01		162,017			0.04		165,122			0.03
Federal funds purchased and securities sold under repurchase agreements	13,877			(0.09	)	16,732			(0.02	)	14,796			(0.04	)	20,349			(0.03	)	18,689			0.20		18,204			0.28
Trading Liabilities	795			1.07		632			1.84		475			1.42		638			1.34		551			1.43		662			0.66
Other borrowed funds	2,108			0.50		3,795			0.37		2,823			0.35		733			1.13		781			0.96		4,628			0.48
Payables to customers and broker-dealers	10,932			0.07		11,234			0.07		11,504			0.06		12,904			0.06		16,801			0.09		16,935			0.05
Long-term debt	20,199			1.21		20,625			0.99		21,070			1.21		21,418			1.19		21,556			1.57		22,838			1.54
Total interest-bearing liabilities	207,431			0.15		223,734			0.12		220,421			0.14		216,376			0.14		220,395			0.21		228,389			0.21
Total noninterest-bearing deposits	89,592					84,890					85,046					85,878					82,944					84,033
Other liabilities	32,341					29,840					27,880					26,530					22,300					22,345
Liabilities and obligations of consolidated investment funds (a)	1,004					857					841					629					259					253
Total The Bank of New York Mellon Corporation Shareholders' Equity	37,048					37,829					38,140					38,216					37,804					38,379
Noncontrolling interest (a)	995					1,129					1,125					961					852					821
Total liabilities and shareholders' equity (a)	$	368,411				$	378,279				$	373,453				$	368,590				$	364,554				$	374,220
Net interest margin - GAAP				0.95	%				0.98	%				0.96	%				0.97	%				0.99	%				0.97	%
Net interest margin - Taxable equivalent basis - Non-GAAP (b)				0.97	%				1.00	%				0.98	%				0.99	%				1.01	%				0.98	%
(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) See "Appendix - GAAP to Non-GAAP Reconciliations" beginning on page 17 for the reconciliation of Non-GAAP measures.
Note: Interest and average rates were calculated on a taxable equivalent basis (Non-GAAP), 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 - 12 Quarter Trend (continued)

	2016										2017
	Sept. 30					Dec. 31					March 31					June 30					Sept. 30					Dec. 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
(dollar amounts in millions)
Assets
Interest-earning assets:
Interest-bearing deposits with banks (primarily foreign)	$	14,066		0.74	%	$	15,447		0.71	%	$	14,714		0.60	%	$	14,832		0.73	%	$	15,899		0.86	%	$	14,068		1.03	%
Interest-bearing deposits with Federal Reserve & other central banks	74,102			0.20		61,672			0.18		66,043			0.35		69,316			0.41		70,430			0.50		74,961			0.54
Federal funds sold and securities purchased under resale agreements	26,376			0.93		27,233			0.97		25,312			1.07		26,873			1.29		28,120			1.67		28,417			2.11
Margin loans	18,132			1.48		17,547			1.61		15,753			1.94		15,058			2.32		13,206			2.60		14,018			2.67
Non-margin loans:
Domestic offices	30,534			2.22		32,730			2.23		30,963			2.44		30,734			2.70		29,950			2.87		30,462			2.73
Foreign offices	12,912			1.45		13,370			1.58		13,596			1.71		13,001			1.99		12,788			2.09		12,292			2.21
Total non-margin loans	43,446			1.99		46,100			2.04		44,559			2.22		43,735			2.49		42,738			2.64		42,754			2.58
Securities
U.S. government obligations	25,279			1.49		25,953			1.54		26,239			1.60		25,928			1.64		25,349			1.67		25,195			1.71
U.S. government agency obligations	56,464			1.70		57,049			1.82		56,857			1.90		59,533			1.95		61,710			2.00		62,889			2.07
Obligations of states and political subdivisions	3,598			2.98		3,461			3.08		3,373			3.11		3,298			3.09		3,226			3.06		3,010			3.10
Other securities	33,064			1.23		31,197			1.36		28,317			1.25		28,468			1.15		28,804			1.34		29,131			1.34
Trading securities	2,176			2.62		2,288			3.17		2,254			3.12		2,455			2.85		2,359			2.26		2,723			2.02
Total securities	120,581			1.58		119,948			1.70		117,040			1.74		119,682			1.74		121,448			1.81		122,948			1.85
Total interest-earning assets	296,703			1.19		287,947			1.30		283,421			1.38		289,496			1.47		291,841			1.59		297,166			1.65
Allowance for loan losses	(165		)			(148		)			(169		)			(164		)			(165		)			(161		)
Cash and due from banks	4,189					5,017					5,097					4,972					4,961					5,124
Other assets	49,463					50,322					46,731					47,303					48,329					48,000
Assets of consolidated investment funds (a)	1,040					1,004					1,120					908					743					657
Total Assets (a)	$	351,230				$	344,142				$	336,200				$	342,515				$	345,709				$	350,786
Liabilities and total equity
Interest-bearing liabilities:
Money market rate accounts and demand deposit accounts	$	10,027		0.14	%	$	13,821		0.08	%	$	12,881		0.08	%	$	13,038		0.08	%	$	13,441		0.16	%	$	14,234		0.22	%
Savings	1,201			0.41		1,152			0.42		1,094			0.61		1,014			0.75		837			0.76		787			1.09
Other time deposits	45,186			0.07		37,766			0.07		35,429			0.12		34,757			0.18		29,934			0.32		30,259			0.41
Foreign offices	98,695			(0.08	)	92,942			(0.07	)	90,416			(0.03	)	93,527			0.05		98,278			0.10		102,483			0.09
Total interest-bearing deposits	155,109			(0.02	)	145,681			(0.01	)	139,820			0.03		142,336			0.09		142,490			0.16		147,763			0.17
Federal funds purchased and securities sold under repurchase agreements	9,585			0.24		11,567			0.30		18,995			0.51		17,970			0.84		21,403			1.30		20,211			1.83
Trading Liabilities	735			1.11		892			0.54		908			0.89		1,216			0.61		1,434			0.54		1,406			0.38
Other borrowed funds	2,047			0.53		1,286			0.77		2,986			0.91		3,408			1.05		4,933			1.26		6,812			1.35
Payables to customers and broker-dealers	16,873			0.07		17,091			0.07		18,961			0.16		20,609			0.30		18,516			0.42		17,868			0.49
Long-term debt	23,930			1.54		24,986			1.36		25,882			1.85		27,398			1.87		28,138			2.07		28,245			2.29
Total interest-bearing liabilities	208,279			0.19		201,503			0.19		207,552			0.33		212,937			0.42		216,914			0.57		222,305			0.65
Total noninterest-bearing deposits	81,619					82,267					73,555					73,886					70,168					69,111
Other liabilities	21,343					20,760					15,600					15,545					17,728					18,408
Liabilities and obligations of consolidated investment funds (a)	238					229					244					111					35					14
Total The Bank of New York Mellon Corporation Shareholders' Equity	39,051					38,713					38,507					39,404					40,322					40,494
Noncontrolling interest (a)	700					670					742					632					542					454
Total liabilities and shareholders' equity (a)	$	351,230				$	344,142				$	336,200				$	342,515				$	345,709				$	350,786
Net interest margin - GAAP				1.05	%				1.16	%				1.13	%				1.14	%				1.15	%				1.14	%
Net interest margin - Taxable equivalent basis - Non-GAAP (b)				1.06	%				1.17	%				1.14	%				1.16	%				1.16	%				1.16	%
(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) See "Appendix - GAAP to Non-GAAP Reconciliations" beginning on page 17 for the reconciliation of Non-GAAP measures.
Note: Interest and average rates were calculated on a taxable equivalent basis (Non-GAAP), 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

	2015									2016								2017
(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	$	1,485		$	1,434	$	1,437	$	1,481	$	1,459	$	1,412	$	1,467	$	1,395	$	1,472	$	1,417	$	1,469	$	1,614
Professional, legal and other purchased services	302			299		301		328		278		290		292		325		312		319		305		338
Software and equipment	228			228		226		225		219		223		215		237		223		232		233		297
Net occupancy	151			149		152		148		142		152		143		153		136		139		141		153
Distribution and servicing	98			96		95		92		100		102		105		98		100		104		109		106
Sub-custodian	70			75		65		60		59		70		59		57		64		65		62		59
Bank assessment charges	55			59		41		2		53		52		61		53		57		59		51		53
Business development	61			72		59		75		57		65		52		71		51		63		49		66
Other	187			191		227		199		188		188		170		175		167		192		177		188
Amortization of intangible assets	66			65		66		64		57		59		61		60		52		53		52		52
Merger & integration, litigation and restructuring (recoveries) charges	(3		)	59		11		18		17		7		18		7		8		12		6		80
Total noninterest expense - GAAP	$	2,700		$	2,727	$	2,680	$	2,692	$	2,629	$	2,620	$	2,643	$	2,631	$	2,642	$	2,655	$	2,654	$	3,006
Memo:
Total noninterest expense excluding amortization of intangible assets and M&I, litigation and restructuring (recoveries) charges - Non-GAAP (a)	$	2,637		$	2,603	$	2,603	$	2,610	$	2,555	$	2,554	$	2,564	$	2,564	$	2,582	$	2,590	$	2,596	$	2,874
Full-time employees at period-end	50,500			50,700		51,300		51,200		52,100		52,200		52,300		52,000		52,600		52,800		52,900		52,500
(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 - 12 Quarter Trend

	2015												2016												2017
(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	$	1,188		$	1,163		$	1,129		$	1,127		$	1,155		$	1,182		$	1,234		$	1,182		$	1,243		$	1,265		$	1,285		$	1,346
Mutual Funds	445			454			419			420			405			398			396			381			397			418			447			453
Private Client	84			83			77			78			79			84			85			85			87			88			92			94
Assets under management	$	1,717		$	1,700		$	1,625		$	1,625		$	1,639		$	1,664		$	1,715		$	1,648		$	1,727		$	1,771		$	1,824		$	1,893		(b)
AUM at period end, by product type: (a)(c)
Equity	10		%	10		%	9		%	9		%	9		%	9		%	9		%	9		%	9		%	9		%	9		%	9		%
Fixed income	12			11			12			12			12			12			11			11			11			11			11			11
Index	21			21			19			20			19			18			18			19			19			18			18			18
Liability-driven investments (d)	30			30			32			31			33			34			35			34			34			35			35			35
Multi-asset and alternative investments	10			11			11			11			11			11			11			11			11			11			11			11
Cash	17			17			17			17			16			16			16			16			16			16			16			16
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) (e)	$	28.5		$	28.6		$	28.5		$	28.9		$	29.1		$	29.5		$	30.5		$	29.9		$	30.6		$	31.1		$	32.2		$	33.3		(b)
Market value of securities on loan at period end (f)	$	291		$	283		$	288		$	277		$	300		$	278		$	288		$	296		$	314		$	336		$	382		$	408
Key Market Metrics
S&P 500 Index (g)	2068			2063			1920			2044			2060			2099			2168			2239			2363			2423			2519			2674
S&P 500 Index - daily average	2064			2102			2027			2052			1951			2075			2162			2185			2326			2398			2467			2603
FTSE 100 Index (g)	6773			6521			6062			6242			6175			6504			6899			7143			7323			7313			7373			7688
FTSE 100 Index-daily average	6793			6920			6399			6271			5988			6204			6765			6923			7274			7391			7380			7477
MSCI EAFE (g)	1849			1842			1644			1716			1652			1608			1702			1684			1793			1883			1974			2051
MSCI EAFE-daily average	1818			1905			1785			1732			1593			1648			1677			1660			1749			1856			1934			2005
Barclays Capital Global Aggregate BondSM Index (g)(h)	448			442			446			442			468			482			486			451			459			471			480			485
NYSE & NASDAQ Share Volume (in billions)	187			185			206			198			218			203			186			189			186			199			179			188
JP Morgan G7 Volatility Index - daily average (i)	10.40			10.06			9.93			9.49			10.60			11.12			10.19			10.24			10.10			7.98			8.17			7.41
Average interest on excess reserves paid by the Federal Reserve	0.25		%	0.25		%	0.25		%	0.29		%	0.50		%	0.50		%	0.50		%	0.55		%	0.79		%	1.04		%	1.25		%	1.30		%
Foreign exchange rates vs. U.S. dollar:
British pound (g)	$	1.48		$	1.57		$	1.52		$	1.48		$	1.44		$	1.34		$	1.30		$	1.23		$	1.25		$	1.30		$	1.34		$	1.35
British pound - average rate	1.51			1.53			1.55			1.52			1.43			1.43			1.31			1.24			1.24			1.28			1.31			1.33
Euro (g)	1.07			1.11			1.12			1.09			1.14			1.11			1.12			1.05			1.07			1.14			1.18			1.20
Euro - average rate	1.13			1.11			1.11			1.10			1.10			1.13			1.12			1.08			1.07			1.10			1.17			1.18
(a) Excludes securities lending cash management assets and assets managed in the Investment Services business. 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) In the first quarter of 2017, the AUM in our Wealth Management business and our multi-class funds has been reclassified to multi-asset and alternative investments. This reclassification does not change total AUM. All prior periods have been restated.
(d) Includes currency overlay assets under management.
(e) Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.1 trillion at 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, $1.2 trillion at Sept. 30, 2016, Dec. 31, 2016, March 31, 2017 and June 30, 2017, and $1.3 trillion at Sept. 30, 2017 and Dec. 31, 2017.
(f) Represents the total amount of securities on loan in our agency securities lending program managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent on behalf of CIBC Mellon clients, which totaled $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, $64 billion at Sept. 30, 2016, $63 billion at Dec. 31, 2016, $65 billion at March 31, 2017, $66 billion at June 30, 2017, $68 billion at Sept. 30, 2017 and $71 billion at Dec. 31, 2017.
(g) Period end.
(h) Unhedged in U.S. dollar terms.
(i) 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

	2015												2016														2017
(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
Beginning balance of AUM (a)(b)	$	1,686		$	1,717		$	1,700		$	1,625		$	1,625			$	1,639			$	1,664		$	1,715		$	1,648		$	1,727		$	1,771		$	1,824
Net inflows (outflows):
Long-term strategies:
Equity	(5		)	(11		)	(5		)	(10		)	(2		)		(2		)		(6		)	(5		)	(4		)	(2		)	(2		)	(6		)
Fixed income	3			(2		)	(4		)	2			—				(3		)		(1		)	(1		)	2			2			4			(2		)
Liability-driven investments (c)	8			5			11			11			14				15				4			(7		)	14			15			(2		)	23
Multi-asset and alternative investments	1			2			2			4			—				2				7			3			2			1			3			2
Total long-term active inflows (outflows)	7			(6		)	4			7			12			—	12			—	4			(10		)	14			16			3			17
Index	8			(10		)	(10		)	(17		)	(11		)		(17		)		(3		)	(1		)	—			(13		)	(3		)	(1		)
Total long-term strategies inflows (outflows)	15			(16		)	(6		)	(10		)	1			—	(5		)	—	1			(11		)	14			3			—			16
Short-term strategies:
Cash	1			(11		)	(9		)	1			(9		)		4				(1		)	(3		)	13			11			10			(4		)
Total net inflows (outflows)	16			(27		)	(15		)	(9		)	(8		)	—	(1		)	—	—			(14		)	27			14			10			12
Net market impact / Other	32			(29		)	(35		)	24			41				71				80			(11		)	41			1			17			47
Net currency impact	(35		)	39			(25		)	(15		)	(19		)		(47		)		(29		)	(42		)	11			29			26			10
Acquisitions	18			—			—			—			—				2				—			—			—			—			—			—
Ending balance of AUM	$	1,717		$	1,700		$	1,625		$	1,625		$	1,639			$	1,664			$	1,715		$	1,648		$	1,727		$	1,771		$	1,824		$	1,893		(d)
(a) Excludes securities lending cash management assets and assets managed in the Investment Services business. 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) In the first quarter of 2017, the AUM in our Wealth Management business and our multi-class funds has been reclassified to multi-asset and alternative investments. This reclassification does not change total AUM. All prior periods have been restated.
(c) Includes currency overlay assets under management.
(d) Preliminary.

9

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT MANAGEMENT BUSINESS - 12 Quarter Trend

	2015												2016												2017
(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	$	301		$	312		$	301		$	294		$	300		$	304		$	309		$	297		$	299		$	314		$	332		$	341
Institutional clients	365			363			347			350			334			344			362			340			348			362			367			378
Wealth management	159			160			156			155			152			160			166			164			167			169			172			179
Total investment management fees (a)	825			835			804			799			786			808			837			801			814			845			871			898
Performance fees	15			20			7			55			11			9			8			32			12			17			15			50
Investment management and performance fees	840			855			811			854			797			817			845			833			826			862			886			948
Distribution and servicing	38			38			37			39			46			49			49			48			52			53			51			51
Other (a)	41			17			(5		)	22			(31		)	(10		)	(18		)	(1		)	(1		)	(16		)	(19		)	(25		)
Total fee and other revenue (a)	919			910			843			915			812			856			876			880			877			899			918			974
Net interest revenue	75			77			83			84			83			82			82			80			86			87			82			74
Total revenue	994			987			926			999			895			938			958			960			963			986			1,000			1,048
Provision for credit losses	(1		)	3			1			(4		)	(1		)	1			—			6			3			—			(2		)	1
Noninterest expense (ex. amortization of intangible assets)	708			700			665			689			660			684			680			672			668			683			687			756
Amortization of intangible assets	24			25			24			24			19			19			22			22			15			15			15			15
Total noninterest expense	732			725			689			713			679			703			702			694			683			698			702			771
Income before taxes	$	263		$	259		$	236		$	290		$	217		$	234		$	256		$	260		$	277		$	288		$	300		$	276
Income before taxes (ex. intangible amortization) - Non-GAAP	$	287		$	284		$	260		$	314		$	236		$	253		$	278		$	282		$	292		$	303		$	315		$	291
Average assets	$	31,361		$	30,414		$	30,960		$	30,982		$	29,971		$	30,229		$	30,392		$	30,532		$	31,067		$	31,355		$	31,689		$	31,681
Assets under management at period end (in billions) (b)	$	1,717		$	1,700		$	1,625		$	1,625		$	1,639		$	1,664		$	1,715		$	1,648		$	1,727		$	1,771		$	1,824		$	1,893		(c)
Pre-tax operating margin	26		%	26		%	25		%	29		%	24		%	25		%	27		%	27		%	29		%	29		%	30		%	26		%
Adjusted pre-tax operating margin- Non-GAAP (d)	32		%	32		%	31		%	34		%	30		%	30		%	33		%	33		%	34		%	34		%	35		%	31		%
(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. 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 amortization of intangible assets, provision for credit losses, and distribution and servicing expense. See "Supplemental information - Explanation of GAAP and Non-GAAP financial measures" beginning on page 23 of the Quarterly Earnings Release for the reconciliation of this Non-GAAP measure. 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 - 12 Quarter Trend

	2015												2016												2017
(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 - ex. securities lending	$	979		$	995		$	1,001		$	970		$	974		$	1,001		$	997		$	999		$	998		$	1,019		$	1,040		$	1,061
Securities lending revenue	38			43			33			39			42			42			42			44			40			42			41			45
Clearing services	342			346			345			337			348			350			347			354			375			393			381			400
Issuer services	231			234			312			199			244			233			336			211			250			241			288			196
Treasury services	135			141			135			135			129			137			136			139			139			139			141			136
Total investment services fees	1,725			1,759			1,826			1,680			1,737			1,763			1,858			1,747			1,802			1,834			1,891			1,838
Foreign exchange and other trading revenue	212			181			179			150			168			161			177			157			153			145			154			168
Other (a)	92			117			129			127			125			130			148			128			129			136			142			135
Total fee and other revenue	2,029			2,057			2,134			1,957			2,030			2,054			2,183			2,032			2,084			2,115			2,187			2,141
Net interest revenue	629			667			662			664			679			690			715			713			707			761			777			813
Total revenue	2,658			2,724			2,796			2,621			2,709			2,744			2,898			2,745			2,791			2,876			2,964			2,954
Provision for credit losses	7			6			7			8			14			(7		)	1			—			—			(3		)	(2		)	(2		)
Noninterest expense (ex. intangible amortization)	1,822			1,874			1,853			1,791			1,770			1,819			1,812			1,786			1,812			1,889			1,837			2,060
Amortization of intangible assets	41			40			41			40			38			40			39			38			37			38			37			37
Total noninterest expense	1,863			1,914			1,894			1,831			1,808			1,859			1,851			1,824			1,849			1,927			1,874			2,097
Income before taxes	$	788		$	804		$	895		$	782		$	887		$	892		$	1,046		$	921		$	942		$	952		$	1,092		$	859
Income before taxes (ex. amortization of intangible assets) - Non-GAAP	$	829		$	844		$	936		$	822		$	925		$	932		$	1,085		$	959		$	979		$	990		$	1,129		$	896
Average loans	$	45,071		$	45,822		$	46,222		$	45,844		$	45,004		$	43,786		$	44,329		$	45,832		$	42,818		$	40,931		$	38,038		$	38,845
Average assets	$	287,321		$	292,264		$	285,195		$	281,766		$	273,289		$	277,225		$	275,714		$	269,036		$	251,027		$	254,724		$	252,461		$	260,494
Average deposits	$	235,524		$	238,404		$	232,250		$	229,241		$	215,707		$	221,998		$	220,316		$	213,531		$	197,690		$	200,417		$	198,299		$	204,680
Pre-tax operating margin	30		%	30		%	32		%	30		%	33		%	33		%	36		%	34		%	34		%	33		%	37		%	29		%
Adjusted pre-tax operating margin (ex. provision for credit losses and intangible amortization) - Non-GAAP	31		%	31		%	34		%	32		%	35		%	34		%	37		%	35		%	35		%	34		%	38		%	30		%
Investment services fees as a percentage of noninterest expense (ex. intangible amortization)	95		%	94		%	99		%	94		%	98		%	97		%	103		%	98		%	99		%	97		%	103		%	89		%
Assets under custody and/or administration at period end (in trillions) (b)	$	28.5		$	28.6		$	28.5		$	28.9		$	29.1		$	29.5		$	30.5		$	29.9		$	30.6		$	31.1		$	32.2		$	33.3		(c)
Market value of securities on loan at period end (in billions) (d)	$	291		$	283		$	288		$	277		$	300		$	278		$	288		$	296		$	314		$	336		$	382		$	408
(a) Other revenue includes investment management fees, financing-related fees, distribution and servicing revenue and investment and other income.
(b) Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.1 trillion at 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, $1.2 trillion at Sept. 30, 2016, Dec. 31, 2016, March 31, 2017 and June 30, 2017, and $1.3 trillion at Sept. 30, 2017 and Dec. 31, 2017.
(c) Preliminary.
(d) Represents the total amount of securities on loan in our agency securities lending program managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent on behalf of CIBC Mellon clients, which totaled $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, $64 billion at Sept. 30, 2016, $63 billion at Dec. 31, 2016, $65 billion at March 31, 2017, $66 billion at June 30, 2017, $68 billion at Sept. 30, 2017 and $71 billion at Dec. 31, 2017.

11

THE BANK OF NEW YORK MELLON

OTHER SEGMENT- 12 Quarter Trend

	2015												2016												2017
(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	$	85		$	103		$	59		$	89		$	129		$	95		$	100		$	42		$	72		$	113		$	69		$	(247	)
Net interest revenue (expense)	24			35			14			12			4			(5		)	(23		)	38			(1		)	(22		)	(20		)	(36		)
Total revenue	109			138			73			101			133			90			77			80			71			91			49			(283		)
Provision for credit losses	(4		)	(15		)	(7		)	159			(3		)	(3		)	(20		)	1			(8		)	(4		)	(2		)	(5		)
Noninterest expense (ex. amortization of intangible assets, M&I and restructuring (recoveries) charges)	108			79			97			150			141			53			88			108			106			28			77			134
Amortization of intangible assets	1			—			1			—			—			—			—			—			—			—			—			—
M&I and restructuring (recoveries) charges	(4		)	8			(2		)	(4		)	(1		)	3			—			2			1			—			—			1
Total noninterest expense	105			87			96			146			140			56			88			110			107			28			77			135
Income (loss) before taxes	$	8		$	66		$	(16	)	$	(204	)	$	(4	)	$	37		$	9		$	(31	)	$	(28	)	$	67		$	(26	)	$	(413	)
Income (loss) before taxes (ex. amortization of intangible assets, M&I and restructuring (recoveries) charges) - Non-GAAP	$	5		$	74		$	(17	)	$	(208	)	$	(5	)	$	40		$	9		$	(29	)	$	(27	)	$	67		$	(26	)	$	(412	)
Average loans and leases	$	1,230		$	2,956		$	2,656		$	2,673		$	1,917		$	1,703		$	1,941		$	2,142		$	1,341		$	1,302		$	1,182		$	1,114
Average assets	$	49,729		$	55,601		$	57,298		$	55,842		$	61,294		$	66,766		$	45,124		$	44,577		$	54,106		$	56,436		$	61,559		$	58,611

12

THE BANK OF NEW YORK MELLON CORPORATION BUSINESSES

	Investment Management									Investment Services									Other												Consolidated Results
(dollar amounts in millions unless otherwise noted)	2017			2016			2015			2017			2016			2015			2017				2016				2015				2017				2016				2015
Investment services fees
Asset servicing	$	96		$	102		$	89		$	4,286		$	4,141		$	4,098		$	1			$	1			$	—			$	4,383			$	4,244			$	4,187
Clearing services	—			—			—			975			1,399			1,370			2				5				5				977				1,404				1,375
Issuer services	—			—			—			1,549			1,024			976			4				2				2				1,553				1,026				978
Treasury services	1			6			9			555			541			546			1				—				—				557				547				555
Total investment services fees	97			108			98			7,365			7,105			6,990			8				8				7				7,470				7,221				7,095
Investment management fees	3,428			3,232			3,263			67			69			70			—				—				22				3,495				3,301				3,355
Performance fees	94			60			97			—			—			—			—				—				1				94				60				98
Foreign exchange and other trading revenue	(35		)	(81		)	(13		)	620			663			722			83				119				59				668				701				768
Distribution and servicing	207			192			152			(47		)	(26		)	10			—				—				—				160				166				162
Financing-related fees	(3		)	(3		)	(1		)	222			226			222			(3		)		(4		)		(1		)		216				219				220
Investment and other income	(120		)	(84		)	(10		)	300			262			163			(84		)		168				166				96				346				319
Total fee revenue	3,668			3,424			3,586			8,527			8,299			8,177			4			(a)	291			(a)	254			(a)	12,199			(a)	12,014			(a)	12,017			(a)
Net securities gains (losses)	—			—			1			—			—			—			3				75				82				3				75				83
Total fee and other revenue	3,668			3,424			3,587			8,527			8,299			8,177			7			(a)	366			(a)	336			(a)	12,202			(a)	12,089			(a)	12,100			(a)
Net interest revenue (expense)	329			327			319			3,058			2,797			2,622			(79		)		14				85				3,308				3,138				3,026
Total revenue	3,997			3,751			3,906			11,585			11,096			10,799			(72		)		380				421				15,510				15,227				15,126
Provision for credit losses	2			6			(1		)	(7		)	8			28			(19		)		(25		)		133				(24		)		(11		)		160
Noninterest expense (ex. amortization of intangible assets)	2,794			2,696			2,762			7,598			7,187			7,340			347				394				432				10,739				10,277				10,534
Amortization of intangible assets	60			82			97			149			155			162			—				—				2				209				237				261
Total noninterest expense	2,854			2,778			2,859			7,747			7,342			7,502			347				394				434				10,948				10,514				10,795
Income (loss) before taxes and noncontrolling interest	$	1,141		$	967		$	1,048		$	3,845		$	3,746		$	3,269		$	(400	)	(a)	$	11		(a)	$	(146	)	(a)	$	4,586		(a)	$	4,724		(a)	$	4,171		(a)
Income (loss) before taxes (ex. amortization of intangible assets) - Non-GAAP	$	1,201		$	1,049		$	1,145		$	3,994		$	3,901		$	3,431		$	(400	)	(a)	$	11		(a)	$	(144	)	(a)	$	4,795		(a)	$	4,961		(a)	$	4,432		(a)
Average loans	$	16,565		$	15,015		$	12,545		$	40,142		$	44,740		$	45,743		$	1,232			$	1,926			$	2,384			$	57,939			$	61,681			$	60,672
Average assets	$	31,450		$	30,170		$	30,928		$	254,646		$	273,808		$	286,617		$	57,752			$	54,500			$	54,642			$	343,848			$	358,478			$	372,187
Average deposits	$	13,615		$	15,650		$	15,160		$	200,235		$	217,882		$	233,833		$	936			$	6,127			$	2,441			$	214,786			$	239,659			$	251,434
Assets under management at period end (in billions) (b)	$	1,893		$	1,648		$	1,625		$	—		$	—		$	—		$	—			$	—			$	—			$	1,893			$	1,648			$	1,625
Assets under custody and/or administration at period end (in trillions) (c)	$	—		$	—		$	—		$	33.3		$	29.9		$	28.9		$	—			$	—			$	—			$	33.3			$	29.9			$	28.9
Market value of securities on loan at period end (in billions) (d)	$	—		$	—		$	—		$	408		$	296		$	277		$	—			$	—			$	—			$	408			$	296			$	277
Pre-tax operating margin	29		%	26		%	27		%	33		%	34		%	30		%	N/M				N/M				N/M				30		%		31		%		28		%
Memo:
Securities lending revenue																															$	195			$	207			$	176
(a) Total fee and other revenue and income before taxes for the years 2015, 2016 and 2017 include income from consolidated investment management funds of $86 million, $26 million and $70 million, respectively, net of income attributable to noncontrolling interests of $64 million, $1 million and $24 million respectively. The net of these income statement line items of $18 million, $16 million and $37 million, respectively, are included above in fee and other revenue. The years 2015, 2016 and 2017 include losses attributable to noncontrolling interest of $4 million, $9 million and $9 million, respectively, related to other consolidated subsidiaries.
(b) Excludes securities lending cash management assets and assets managed in the Investment Services business. 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) Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.0 trillion at Dec. 31, 2015, $1.2 trillion at Dec. 31, 2016 and $1.3 trillion at Dec. 31, 2017.
(d) Represents the total amount of securities on loan in our agency securities lending program managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent on behalf of CIBC Mellon clients, which totaled $55 billion at Dec. 31, 2015, $63 billion at Dec. 31, 2016 and $71 billion at Dec. 31, 2017.
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

	2015												2016												2017
(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			Dec. 31
Nonperforming loans:
Other residential mortgages	$	111		$	110		$	103		$	102		$	99		$	97		$	93		$	91		$	88		$	84		$	80		$	78
Wealth management loans and mortgages	12			11			12			11			11			10			7			8			10			10			8			7
Commercial real estate	1			1			1			2			2			2			1			—			—			—			—			1
Lease financing	—			—			—			—			—			4			4			4			—			—			—			—
Commercial	—			—			—			—			5			—			—			—			—			—			—			—
Financial institutions	—			—			—			171			171			171			—			—			—			2			2			—
Total nonperforming loans	124			122			116			286			288			284			105			103			98			96			90			86
Other assets owned	4			5			7			6			4			5			4			4			9			4			4			4
Total nonperforming assets (a)	$	128		$	127		$	123		$	292		$	292		$	289		$	109		$	107		$	107		$	100		$	94		$	90
Nonperforming assets ratio	0.21		%	0.20		%	0.20		%	0.46		%	0.48		%	0.45		%	0.17		%	0.17		%	0.18		%	0.16		%	0.16		%	0.15		%
Nonperforming assets ratio excluding margin loans	0.30			0.30			0.28			0.67			0.69			0.63			0.23			0.23			0.24			0.21			0.21			0.15
Allowance for loan losses/nonperforming loans	153.2			150.0			156.0			54.9			56.3			55.6			141.0			164.1			167.3			171.9			178.9			184.9
Allowance for loan losses/nonperforming assets	148.4			144.1			147.2			53.8			55.5			54.7			135.8			157.9			153.3			165.0			171.3			176.7
Total allowance for credit losses/nonperforming loans	228.2			227.9			241.4			96.2			99.7			98.6			261.0			272.8			281.6			281.3			294.4			303.5
Total allowance for credit losses/nonperforming assets	221.1			218.9			227.6			94.2			98.3			96.9			251.4			262.6			257.9			270.0			281.9			290.0
(a) Loans of consolidated investment management funds are not part of BNY Mellon's loan portfolio. 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

	2015												2016												2017
(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			Dec. 31
Allowance for credit losses:																			��
Allowance for credit losses	$	191		$	190		$	183		$	181		$	157		$	162		$	158		$	148		$	169		$	164		$	165		$	161
Allowance for lending-related commitments	89			93			95			99			118			125			122			126			112			112			105			104
Allowance for credit losses - beginning of period	$	280		$	283		$	278		$	280		$	275		$	287		$	280		$	274		$	281		$	276		$	270		$	265
Net (charge-offs) recoveries:
Charge-offs	—			—			—			(170		)	—			—			(1		)	(1		)	(1		)	—			—			—
Recoveries	1			1			1			2			2			2			14			1			1			1			1			2
Total net (charge-offs) recoveries	1			1			1			(168		)	2			2			13			—			—			1			1			2
Provision for credit losses	2			(6		)	1			163			10			(9		)	(19		)	7			(5		)	(7		)	(6		)	(6		)
Allowance for credit losses - end of period	$	283		$	278		$	280		$	275		$	287		$	280		$	274		$	281		$	276		$	270		$	265		$	261
Allowance for loan losses	$	190		$	183		$	181		$	157		$	162		$	158		$	148		$	169		$	164		$	165		$	161		$	159
Allowance for lending-related commitments	93			95			99			118			125			122			126			112			112			105			104			102
Allowance for credit losses - end of period	$	283		$	278		$	280		$	275		$	287		$	280		$	274		$	281		$	276		$	270		$	265		$	261
Allowance for loan losses as a percentage of total loans	0.31		%	0.29		%	0.29		%	0.25		%	0.26		%	0.25		%	0.22		%	0.26		%	0.27		%	0.27		%	0.27		%	0.26		%

15

THE BANK OF NEW YORK MELLON CORPORATION

Quarterly Financial Trends

January 18, 2018

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).

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-Qs 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. 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. 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. Return on tangible common equity and operating margin measures, which exclude some or all of these items, as well as the impairment charge(recovery) related to Sentinel, are also presented. Operating margin measures may also exclude the provision for credit losses and 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. 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 and Operational Excellence Initiatives. Excluding these charges mentioned above permits investors to view expenses on a basis consistent with how management views the business.

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.

Net interest revenue (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP include the tax equivalent adjustments on tax-exempt income which allows for comparisons of amounts arising from both taxable and tax-exempt sources and is consistent with industry practice. The adjustment to an FTE basis has no impact on net income.

18

THE BANK OF NEW YORK MELLON CORPORATION
PRE-TAX OPERATING MARGIN RATIO RECONCILIATION - 12 QUARTER TREND
	2015												2016												2017
(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
Income before income taxes – GAAP	$	1,090		$	1,165		$	1,109		$	871		$	1,091		1,165			1,317			$	1,152		$	1,206		$	1,308		$	1,368		$	728
Less: Net income (loss) attributable to noncontrolling interests of consolidated investment management funds	31			37			(5		)	5			(7		)	4			9			4			18			3			3			9
Add: Amortization of intangible assets	66			65			66			64			57			59			61			60			52			53			52			52
M&I, litigation and restructuring charges (recoveries)	(3		)	59			11			18			17			7			18			7			8			12			6			80
Impairment charge (recovery) related to Sentinel	—			—			—			170			—			—			(13		)	—			—			—			—			—
Income before income taxes, as adjusted – Non-GAAP (a)	$	1,122		$	1,252		$	1,191		$	1,118		$	1,172		$	1,227		$	1,374		$	1,215		$	1,248		$	1,370		$	1,423		$	851
Fee and other revenue – GAAP	$	3,012		$	3,067		$	3,053		$	2,950		$	2,970		$	2,999		$	3,150		$	2,954		$	3,018		$	3,120		$	3,167		$	2,860
Income (loss) from consolidated investment management funds – GAAP	52			40			(22		)	16			(6		)	10			17			5			33			10			10			17
Net interest revenue – GAAP	728			779			759			760			766			767			774			831			792			826			839			851
Total revenue – GAAP	3,792			3,886			3,790			3,726			3,730			3,776			3,941			3,790			3,843			3,956			4,016			3,728
Less: Net income (loss) attributable to noncontrolling interests of consolidated investment management funds	31			37			(5		)	5			(7		)	4			9			4			18			3			3			9
Total revenue, as adjusted – Non-GAAP (a)	$	3,761		$	3,849		$	3,795		$	3,721		$	3,737		$	3,772		$	3,932		$	3,786		$	3,825		$	3,953		$	4,013		$	3,719
Pre-tax operating margin - GAAP (b)(c)	29		%	30		%	29		%	23		%	29		%	31		%	33		%	30		%	31		%	33		%	34		%	20		%
Adjusted pre-tax operating margin – Non-GAAP (a)(b)(c)	30		%	33		%	31		%	30		%	31		%	33		%	35		%	32		%	33		%	35		%	35		%	23		%
(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 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, corporate/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, $74 million for 3Q16, $92 million for 4Q16, $101 million for 1Q17, $106 million for 2Q17, $102 million for 3Q17 and $66 million for 4Q17, 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, 1.2% for 3Q16, 1.7% for 4Q16, 1.8% for 1Q17 and 2Q17, 1.6% for 3Q17 and 1.4% for 4Q17.

19

THE BANK OF NEW YORK MELLON CORPORATION
RETURN ON TANGIBLE COMMON EQUITY RECONCILIATION - 12 QUARTER TREND
	2015												2016												2017
(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
Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP	$	766		$	830		$	820		$	637		$	804		$	825		$	974		$	822		$	880		$	926		$	983		$	1,126
Add:  Amortization of intangible assets	66			65			66			64			57			59			61			60			52			53			52			52
Less: Tax impact of amortization of intangible assets	23			21			23			22			20			21			21			19			18			19			17			18
Net income applicable to common shareholders of The Bank of New York Mellon Corporation excluding amortization of intangible assets – Non-GAAP	$	809		$	874		$	863		$	679		$	841		$	863		$	1,014		$	863		$	914		$	960		$	1,018		$	1,160
Average common shareholders’ equity	$	35,486		$	35,516		$	35,588		$	35,664		$	35,252		$	35,827		$	35,767		$	35,171		$	34,965		$	35,862		$	36,780		$	36,952
Less: Average goodwill	17,756			17,752			17,742			17,673			17,562			17,622			17,463			17,344			17,338			17,408			17,497			17,518
Average intangible assets	4,088			4,031			3,962			3,887			3,812			3,789			3,711			3,638			3,578			3,532			3,487			3,437
Add: Deferred tax liability – tax deductible goodwill (a)	1,362			1,351			1,379			1,401			1,428			1,452			1,477			1,497			1,518			1,542			1,561			1,034
Deferred tax liability – intangible assets (a)	1,200			1,179			1,164			1,148			1,140			1,129			1,116			1,105			1,100			1,095			1,092			718
Average tangible common shareholders’ equity – Non-GAAP	$	16,204		$	16,263		$	16,427		$	16,653		$	16,446		$	16,997		$	17,186		$	16,791		$	16,667		$	17,559		$	18,449		$	17,749
Return on tangible common equity – Non-GAAP (b)	20.3		%	21.5		%	20.8		%	16.2		%	20.6		%	20.4		%	23.5		%	20.4		%	22.2		%	21.9		%	21.9		%	25.9		%
(a) Deferred tax liabilities are based on fully phased-in Basel III capital rules. Deferred tax liabilities at Dec. 31, 2017 have been remeasured at the lower statutory corporate tax rate.
(b) Quarterly returns are annualized.

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THE BANK OF NEW YORK MELLON CORPORATION
NONINTEREST EXPENSE RECONCILIATION - 12 QUARTER TREND
	2015									2016								2017
(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
Total noninterest expense -GAAP	$	2,700		$	2,727	$	2,680	$	2,692	$	2,629	$	2,620	$	2,643	$	2,631	$	2,642	$	2,655	$	2,654	$	3,006
Less: Amortization of intangible assets	66			65		66		64		57		59		61		60		52		53		52		52
M&I, litigation and restructuring charges (recoveries)	(3		)	59		11		18		17		7		18		7		8		12		6		80
Total noninterest expense excluding amortization of intangible assets and M&I, litigation and restructuring charges (recoveries) - Non-GAAP	$	2,637		$	2,603	$	2,603	$	2,610	$	2,555	$	2,554	$	2,564	$	2,564	$	2,582	$	2,590	$	2,596	$	2,874

21

THE BANK OF NEW YORK MELLON CORPORATION
PRE-TAX OPERATING MARGIN - INVESTMENT MANAGEMENT BUSINESS - 12 QUARTER TREND
	2015												2016												2017
(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
Income before income taxes – GAAP	$	263		$	259		$	236		$	290		$	217		$	234		$	256		$	260		$	277		$	288		$	300		$	276
Add: Amortization of intangible assets	24			25			24			24			19			19			22			22			15			15			15			15
Provision for credit losses	(1		)	3			1			(4		)	(1		)	1			—			6			3			—			(2		)	1
Adjusted income before income taxes excluding amortization of intangible assets and provision for credit losses – Non-GAAP	$	286		$	287		$	261		$	310		$	235		$	254		$	278		$	288		$	295		$	303		$	313		$	292
Total revenue – GAAP	$	994		$	987		$	926		$	999		$	895		$	938		$	958		$	960		$	963		$	986		$	1,000		$	1,048
Less: Distribution and servicing expense	97			95			94			92			100			102			104			98			101			104			110			107
Adjusted total revenue net of distribution and servicing expense – Non-GAAP	$	897		$	892		$	832		$	907		$	795		$	836		$	854		$	862		$	862		$	882		$	890		$	941
Pre-tax operating margin - GAAP (a)	26		%	26		%	25		%	29		%	24		%	25		%	27		%	27		%	29		%	29		%	30		%	26		%
Adjusted pre-tax operating margin excluding amortization of intangible assets, provision for credit losses, and distribution and servicing expense – Non-GAAP (a)	32		%	32		%	31		%	34		%	30		%	30		%	33		%	33		%	34		%	34		%	35		%	31		%
(a) Income before taxes divided by total revenue.

22

THE BANK OF NEW YORK MELLON CORPORATION
NET INTEREST MARGIN RECONCILIATION - 12 QUARTER TREND
	2015												2016												2017
(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
Net interest revenue - GAAP	$	728		$	779		$	759		$	760		$	766		$	767		$	774		$	831		$	792		$	826		$	839		$	851
Add: Tax equivalent adjustment	15			15			14			14			14			13			12			12			12			12			12			11
Net interest revenue - (FTE) - Non-GAAP	$	743		$	794		$	773		$	774		$	780		$	780		$	786		$	843		$	804		$	838		$	851		$	862
Average interest-earning assets	$	308,104		$	318,596		$	315,672		$	312,610		$	310,678		$	318,433		$	296,703		$	287,947		$	283,421		$	289,496		$	291,841		$	297,166
Net interest margin - GAAP (a)	0.95		%	0.98		%	0.96		%	0.97		%	0.99		%	0.97		%	1.05		%	1.16		%	1.13		%	1.14		%	1.15		%	1.14		%
Net interest margin - (FTE) - Non-GAAP (a)	0.97		%	1.00		%	0.98		%	0.99		%	1.01		%	0.98		%	1.06		%	1.17		%	1.14		%	1.16		%	1.16		%	1.16		%
(a) Net interest margin is annualized.

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