The Bank of New York Mellon Corporation (BK) 8-K Bny Mellon Reports First Quarter 2018 Earnings of

The Bank of New York Mellon Corporation

Financial Supplement

First Quarter 2018

Table of Contents
Consolidated Results		Page
Consolidated Financial Highlights		3
Condensed Consolidated Income Statement		4
Condensed Consolidated Balance Sheet		5
Fee and Other Revenue		6
Average Balances and Interest Rates		7
Noninterest Expense		8
Capital and Liquidity		9
Key Market Metrics		10
Business Segment Results
Investment Services Business		11
Investment Management Business		13
AUM by Product, AUM Flows and Wealth Management Client Assets		14
Other Segment		15
Select Full-Year Information		16
Other
Investment Securities Portfolio		17
Allowance for Credit Losses and Nonperforming Assets		18
Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures		19

THE BANK OF NEW YORK MELLON CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
																1Q18 vs.
(dollars in millions, except per common share amounts, or unless otherwise noted)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
Selected income statement data
Fee revenue	$	3,319		$	2,886		$	3,148		$	3,120		$	3,008		15	%	10	%
Net securities (losses) gains	(49		)	(26		)	19			—			10			N/M		N/M
Fee and other revenue	3,270			2,860			3,167			3,120			3,018			14		8
(Loss) income from consolidated investment management funds	(11		)	17			10			10			33			N/M		N/M
Net interest revenue	919			851			839			826			792			8		16
Total revenue	4,178			3,728			4,016			3,956			3,843			12		9
Provision for credit losses	(5		)	(6		)	(6		)	(7		)	(5		)	N/M		N/M
Noninterest expense	2,739			3,006			2,654			2,655			2,642			(9	)	4
Income before income taxes	1,444			728			1,368			1,308			1,206			N/M		20
Provision (benefit) for income taxes	282			(453		)	348			332			269			N/M		5
Net income	$	1,162		$	1,181		$	1,020		$	976		$	937		(2	)%	24	%
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	1,135		$	1,126		$	983		$	926		$	880		1	%	29	%
Diluted earnings per common share	$	1.10		$	1.08		$	0.94		$	0.88		$	0.83		2	%	33	%
Average common shares and equivalents outstanding - diluted (in thousands)	1,021,731			1,030,404			1,041,138			1,041,879			1,047,746			(1	)%	(2	)%
Financial ratios
Pre-tax operating margin	35		%	20		%	34		%	33		%	31		%
Return on common equity (annualized) (a)	12.2		%	12.1		%	10.6		%	10.4		%	10.2		%
Return on tangible common equity (annualized) – Non-GAAP (a)	25.9		%	25.9		%	21.9		%	21.9		%	22.2		%
Percent of non-U.S. total revenue	37		%	39		%	36		%	35		%	34		%
Period end
Assets under custody and/or administration (“AUC/A”) (in trillions) (b)	$	33.5		$	33.3		$	32.2		$	31.1		$	30.6		1	%	9	%
Assets under management (“AUM”) (in trillions)	$	1.87		$	1.89		$	1.82		$	1.77		$	1.73		(1	)%	8	%
Book value per common share (a)	$	37.78		$	37.21		$	36.11		$	35.26		$	34.23
Tangible book value per common share – Non-GAAP (a)	$	18.78		$	18.24		$	18.19		$	17.53		$	16.65
Cash dividends per common share	$	0.24		$	0.24		$	0.24		$	0.19		$	0.19
Common dividend payout ratio	22		%	22		%	26		%	22		%	23		%
Closing stock price per common share	$	51.53		$	53.86		$	53.02		$	51.02		$	47.23
Market capitalization	$	52,080		$	54,584		$	54,294		$	52,712		$	49,113
Common shares outstanding (in thousands)	1,010,676			1,013,442			1,024,022			1,033,156			1,039,877
Capital ratios at period end(c)
Common equity Tier 1 (“CET1”) ratio	10.7		%	10.3		%	10.7		%	10.4		%	10.0		%
Tier 1 capital ratio	12.7		%	12.3		%	12.8		%	12.5		%	12.1		%
Total capital ratio	13.5		%	13.0		%	13.6		%	12.8		%	12.4		%
Supplementary leverage ratio (“SLR”)	5.9		%	5.9		%	6.1		%	6.0		%	5.9		%
(a)    Non-GAAP information, for all periods presented, excludes goodwill and intangible assets, net of deferred tax liabilities. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 19 for the reconciliation of Non-GAAP measures.
(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 $1.3 trillion at March 31, 2018, Dec. 31, 2017 and Sept. 30, 2017 and $1.2 trillion at June 30, 2017 and March 31, 2017.
(c)    Regulatory capital ratios for March 31, 2018 are preliminary. The capital ratios for periods prior to March 31, 2018 are presented on a fully phased-in basis. All risk-based capital ratios are presented using Advanced Approaches risk-weightings. See "Capital and Liquidity" for the transitional capital ratios.
N/M - Not meaningful.

3

THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENT
																1Q18 vs.
(dollars in millions, except per share amounts; common shares in thousands)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
Revenue
Investment services fees:
Asset servicing	$	1,168		$	1,130		$	1,105		$	1,085		$	1,063		3	%	10	%
Clearing services	414			400			383			394			376			4		10
Issuer services	260			197			288			241			251			32		4
Treasury services	138			137			141			140			139			1		(1	)
Total investment services fees	1,980			1,864			1,917			1,860			1,829			6		8
Investment management and performance fees	960			962			901			879			842			—		14
Foreign exchange and other trading revenue	209			166			173			165			164			26		27
Financing-related fees	52			54			54			53			55			(4	)	(5	)
Distribution and servicing	36			38			40			41			41			(5	)	(12	)
Investment and other income (loss)	82			(198		)	63			122			77			N/M		N/M
Total fee revenue	3,319			2,886			3,148			3,120			3,008			15		10
Net securities (losses) gains	(49		)	(26		)	19			—			10			N/M		N/M
Total fee and other revenue	3,270			2,860			3,167			3,120			3,018			14		8
(Loss) income from consolidated investment management funds	(11		)	17			10			10			33			N/M		N/M
Net interest revenue	919			851			839			826			792			8		16
Total revenue	4,178			3,728			4,016			3,956			3,843			12		9
Provision for credit losses	(5		)	(6		)	(6		)	(7		)	(5		)	N/M		N/M
Noninterest expense
Staff (a)	1,576			1,628			1,485			1,432			1,488			(3	)	6
Professional, legal and other purchased services	291			339			305			319			313			(14	)	(7	)
Software and equipment	234			297			233			232			223			(21	)	5
Net occupancy	139			153			141			140			136			(9	)	2
Sub-custodian and clearing (b)	119			102			101			108			103			17		16
Distribution and servicing	106			106			109			104			100			—		6
Bank assessment charges	52			53			51			59			57			(2	)	(9	)
Business development	51			66			49			63			51			(23	)	—
Amortization of intangible assets	49			52			52			53			52			(6	)	(6	)
Other (a)(b)(c)	122			210			128			145			119			(42	)	3
Total noninterest expense	2,739			3,006			2,654			2,655			2,642			(9	)	4
Income before income taxes	1,444			728			1,368			1,308			1,206			N/M		20
Provision (benefit) for income taxes	282			(453		)	348			332			269			N/M		5
Net income	1,162			1,181			1,020			976			937			(2	)	24
Net loss (income) attributable to noncontrolling interests	9			(6		)	(2		)	(1		)	(15		)	N/M		N/M
Preferred stock dividends	(36		)	(49		)	(35		)	(49		)	(42		)	N/M		N/M
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	1,135		$	1,126		$	983		$	926		$	880		1	%	29	%
Average common shares and equivalents outstanding:
Basic	1,016,797			1,024,828			1,035,337			1,035,829			1,041,158			(1	)%	(2	)%
Diluted	1,021,731			1,030,404			1,041,138			1,041,879			1,047,746			(1	)%	(2	)%
Earnings per common share:
Basic	$	1.11		$	1.09		$	0.94		$	0.88		$	0.83		2	%	34	%
Diluted	$	1.10		$	1.08		$	0.94		$	0.88		$	0.83		2	%	33	%
(a)In 1Q18, we adopted new accounting guidance included in ASU 2017-07, Compensation-Retirement Benefits - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which required the reclassification of the components of pension and other post-retirement costs, other than the service cost component. As a result, staff expense increased and other expense decreased. Prior periods have been reclassified.
(b)    Beginning in 1Q18, clearing expense, which was previously included in other expense, was included with sub-custodian expense. Prior periods have been reclassified.
(c)    Beginning in 1Q18, merger and integration ("M&I"), litigation and restructuring charges are no longer separately disclosed. Expenses previously reported in this line have been reclassified to existing expense categories, primarily other expense.
N/M - Not meaningful.

4

THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
	2018			2017
(in millions)	March 31			Dec. 31			Sept. 30			June 30			March 31
Assets
Cash and due from:
Banks	$	4,636		$	5,382		$	5,557		$	4,725		$	5,366
Interest-bearing deposits with the Federal Reserve and other central banks	91,431			91,510			75,808			74,130			65,086
Interest-bearing deposits with banks	15,186			11,979			15,256			13,601			14,554
Federal funds sold and securities purchased under resale agreements	28,784			28,135			27,883			27,440			25,776
Securities	118,789			120,370			120,049			119,260			115,834
Trading assets	8,596			6,022			4,666			5,279			4,912
Loans	60,809			61,540			59,068			61,673			60,868
Allowance for loan losses	(156		)	(159		)	(161		)	(165		)	(164		)
Net loans	60,653			61,381			58,907			61,508			60,704
Premises and equipment	1,702			1,634			1,631			1,640			1,307
Accrued interest receivable	610			610			547			567			551
Goodwill	17,596			17,564			17,543			17,457			17,355
Intangible assets	3,370			3,411			3,461			3,506			3,549
Other assets	21,638			23,029			22,287			25,000			21,515
Subtotal assets of operations	372,991			371,027			353,595			354,113			336,509
Assets of consolidated investment management funds, at fair value	606			731			802			702			1,027
Total assets	$	373,597		$	371,758		$	354,397		$	354,815		$	337,536
Liabilities
Deposits	$	241,844		$	244,322		$	230,996		$	235,677		$	221,291
Federal funds purchased and securities sold under repurchase agreements	21,600			15,163			10,314			10,934			11,149
Trading liabilities	3,365			3,984			3,253			4,100			2,816
Payables to customers and broker-dealers	20,172			20,184			21,176			21,622			21,306
Commercial paper	3,936			3,075			2,501			876			2,543
Other borrowed funds	1,550			3,028			3,353			1,338			1,022
Accrued taxes and other expenses	5,349			6,225			6,070			5,670			5,290
Other liabilities	5,707			6,050			7,195			6,379			5,733
Long-term debt	27,939			27,979			28,408			27,699			26,346
Subtotal liabilities of operations	331,462			330,010			313,266			314,295			297,496
Liabilities of consolidated investment management funds, at fair value	11			2			27			22			209
Total liabilities	331,473			330,012			313,293			314,317			297,705
Temporary equity
Redeemable noncontrolling interests	184			179			197			181			159
Permanent equity
Preferred stock	3,542			3,542			3,542			3,542			3,542
Common stock	14			14			14			13			13
Additional paid-in capital	26,911			26,665			26,588			26,432			26,248
Retained earnings	26,496			25,635			24,757			24,027			23,300
Accumulated other comprehensive loss, net of tax	(2,343		)	(2,357		)	(2,781		)	(3,093		)	(3,524		)
Less: Treasury stock, at cost	(12,892		)	(12,248		)	(11,597		)	(10,947		)	(10,441		)
Total The Bank of New York Mellon Corporation shareholders’ equity	41,728			41,251			40,523			39,974			39,138
Nonredeemable noncontrolling interests of consolidated investment management funds	212			316			384			343			534
Total permanent equity	41,940			41,567			40,907			40,317			39,672
Total liabilities, temporary equity and permanent equity	$	373,597		$	371,758		$	354,397		$	354,815		$	337,536

5

THE BANK OF NEW YORK MELLON CORPORATION
FEE AND OTHER REVENUE
															1Q18 vs.
(dollars in millions)	1Q18			4Q17			3Q17		2Q17			1Q17			4Q17		1Q17
Investment services fees:
Asset servicing	$	1,113		$	1,079		$	1,058	$	1,037		$	1,014		3	%	10	%
Securities lending	55			51			47		48			49			8		12
Clearing services	414			400			383		394			376			4		10
Issuer services	260			197			288		241			251			32		4
Treasury services	138			137			141		140			139			1		(1	)
Total investment services fees	1,980			1,864			1,917		1,860			1,829			6		8
Investment management and performance fees (a)(b)	960			962			901		879			842			—		14
Foreign exchange and other trading revenue:
Foreign exchange	183			175			158		151			154			5		19
Other trading revenue (loss)	26			(9		)	15		14			10			N/M		N/M
Total foreign exchange and other trading revenue	209			166			173		165			164			26		27
Financing-related fees	52			54			54		53			55			(4	)	(5	)
Distribution and servicing	36			38			40		41			41			(5	)	(12	)
Investment and other income (loss):
Asset-related gains (losses)	46			—			1		(5		)	3			N/M		N/M
Corporate/bank-owned life insurance	36			43			37		43			30			N/M		N/M
Expense reimbursements from joint venture	16			15			18		17			14			N/M		N/M
Seed capital gains (a)	—			7			6		10			9			N/M		N/M
Lease-related gains	—			4			—		51			1			N/M		N/M
Equity investment income	—			4			—		7			26			N/M		N/M
Other (loss) income	(16		)	(271		)	1		(1		)	(6		)	N/M		N/M
Total investment and other income (loss) (a)	82			(198		)	63		122			77			N/M		N/M
Total fee revenue	3,319			2,886			3,148		3,120			3,008			15		10
Net securities (losses) gains	(49		)	(26		)	19		—			10			N/M		N/M
Total fee and other revenue	$	3,270		$	2,860		$	3,167	$	3,120		$	3,018		14	%	8	%
(a)    Excludes investment management fees and seed capital gains related to consolidated investment management funds, both of which are reflected in operations of consolidated investment management funds, net of noncontrolling interests. Investment management fees related to consolidated investment management fees were $- million in 1Q18, $- million in 4Q17, $1 million in 3Q17, $2 million in 2Q17 and $2 million in 1Q17. Seed capital gains related to consolidated investment management funds were $- million in 1Q18, $8 million in 4Q17, $6 million in 3Q17, $5 million in 2Q17 and $13 million in 1Q17.
(b)    On a constant currency basis (Non-GAAP), investment management and performance fees increased 9% compared with 1Q17. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 19 for the reconciliation of this Non-GAAP measure.
N/M - Not meaningful.

6

THE BANK OF NEW YORK MELLON CORPORATION
AVERAGE BALANCES AND INTEREST RATES
	1Q18				4Q17				3Q17				2Q17				1Q17
	Average balance		Average rate		Average balance		Average rate		Average balance		Average rate		Average balance		Average rate		Average balance		Average rate
(dollars in millions, presented on an FTE basis)
Assets
Interest-earning assets:
Interest-bearing deposits with banks (primarily foreign banks)	$	13,850	1.25	%	$	14,068	1.03	%	$	15,899	0.86	%	$	14,832	0.73	%	$	14,714	0.60	%
Interest-bearing deposits held at the Federal Reserve and other central banks	79,068		0.64		74,961		0.54		70,430		0.50		69,316		0.41		66,043		0.35
Federal funds sold and securities purchased under resale agreements	27,903		2.47		28,417		2.11		28,120		1.67		26,873		1.29		25,312		1.07
Margin loans	15,674		2.98		14,018		2.67		13,206		2.60		15,058		2.32		15,753		1.94
Non-margin loans:
Domestic offices	30,415		3.02		30,462		2.73		29,950		2.87		30,734		2.70		30,963		2.44
Foreign offices	12,517		2.51		12,292		2.21		12,788		2.09		13,001		1.99		13,596		1.71
Total non-margin loans	42,932		2.87		42,754		2.58		42,738		2.64		43,735		2.49		44,559		2.22
Securities:
U.S. Government obligations	23,460		1.88		25,195		1.71		25,349		1.67		25,928		1.64		26,239		1.60
U.S. Government agency obligations	62,975		2.23		62,889		2.07		61,710		2.00		59,533		1.95		56,857		1.90
States and political subdivisions - tax-exempt	2,875		2.62		3,010		3.10		3,226		3.06		3,298		3.09		3,373		3.11
Other securities	29,149		1.69		29,131		1.34		28,804		1.34		28,468		1.15		28,317		1.25
Trading securities	4,183		2.62		2,723		2.02		2,359		2.26		2,455		2.85		2,254		3.12
Total securities	122,642		2.05		122,948		1.85		121,448		1.81		119,682		1.74		117,040		1.74
Total interest-earning assets	$	302,069	1.85	%	$	297,166	1.65	%	$	291,841	1.59	%	$	289,496	1.47	%	$	283,421	1.38	%
Noninterest-earning assets	56,106				53,620				53,868				53,019				52,779
Total assets	$	358,175			$	350,786			$	345,709			$	342,515			$	336,200
Liabilities and total equity
Interest-bearing liabilities:
Interest-bearing deposits:
Money market rate accounts	$	8,359	0.14	%	$	7,642	0.08	%	$	7,509	0.06	%	$	7,379	0.04	%	$	7,510	0.05	%
Savings	773		1.95		787		1.09		837		0.76		1,014		0.75		1,094		0.61
Demand deposits	8,379		0.52		6,592		0.38		5,932		0.27		5,659		0.14		5,371		0.12
Time deposits	34,101		0.63		30,259		0.41		29,934		0.32		34,757		0.18		35,429		0.12
Foreign offices	104,092		0.18		102,483		0.09		98,278		0.10		93,527		0.05		90,416		(0.03	)
Total interest-bearing deposits	155,704		0.30		147,763		0.17		142,490		0.16		142,336		0.09		139,820		0.03
Federal funds purchased and securities sold under repurchase agreements	18,963		2.29		20,211		1.83		21,403		1.30		17,970		0.84		18,995		0.51
Trading liabilities	1,569		2.26		1,406		0.38		1,434		0.54		1,216		0.61		908		0.89
Other borrowed funds	2,119		1.67		3,421		1.46		2,197		1.38		1,193		1.24		822		0.98
Commercial paper	3,131		1.59		3,391		1.23		2,736		1.15		2,215		0.95		2,164		0.88
Payables to customers and broker-dealers	17,101		0.75		17,868		0.49		18,516		0.42		20,609		0.30		18,961		0.16
Long-term debt	28,407		2.49		28,245		2.29		28,138		2.07		27,398		1.87		25,882		1.85
Total interest-bearing liabilities	$	226,994	0.82	%	$	222,305	0.65	%	$	216,914	0.57	%	$	212,937	0.42	%	$	207,552	0.33	%
Total noninterest-bearing deposits	71,005				69,111				70,168				73,886				73,555
Other noninterest-bearing liabilities	18,571				18,422				17,763				15,656				15,844
Total The Bank of New York Mellon Corporation shareholders’ equity	41,135				40,494				40,322				39,404				38,507
Noncontrolling interests	470				454				542				632				742
Total liabilities and shareholders’ equity	$	358,175			$	350,786			$	345,709			$	342,515			$	336,200
Net interest margin			1.22	%			1.14	%			1.15	%			1.14	%			1.13	%
Net interest margin (FTE) – Non-GAAP (a)			1.23	%			1.16	%			1.16	%			1.16	%			1.14	%
(a)    See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 19 for the reconciliation of this Non-GAAP measure.
Note: Interest and average rates were calculated on an FTE basis, at tax rates of approximately 21% for 1Q18 and approximately 35% for quarters of 2017, using dollar amounts in thousands and the actual number of days in the year.

7

THE BANK OF NEW YORK MELLON CORPORATION
NONINTEREST EXPENSE
											1Q18 vs.
(dollars in millions)	1Q18		4Q17		3Q17		2Q17		1Q17		4Q17		1Q17
Staff (a)	$	1,576	$	1,628	$	1,485	$	1,432	$	1,488	(3	)%	6	%
Professional, legal and other purchased services	291		339		305		319		313		(14	)	(7	)
Software and equipment	234		297		233		232		223		(21	)	5
Net occupancy	139		153		141		140		136		(9	)	2
Sub-custodian and clearing (b)	119		102		101		108		103		17		16
Distribution and servicing	106		106		109		104		100		—		6
Bank assessment charges	52		53		51		59		57		(2	)	(9	)
Business development	51		66		49		63		51		(23	)	—
Amortization of intangible assets	49		52		52		53		52		(6	)	(6	)
Other (a)(b)(c)	122		210		128		145		119		(42	)	3
Total noninterest expense	$	2,739	$	3,006	$	2,654	$	2,655	$	2,642	(9	)%	4	%
Full-time employees at period end	52,100		52,500		52,900		52,800		52,600		(1	)%	(1	)%
(a)    In 1Q18, we adopted new accounting guidance included in ASU 2017-07, Compensation-Retirement Benefits - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which required the reclassification of the components of pension and other post-retirement costs, other than the service cost component. As a result, staff expense increased and other expense decreased. Prior periods have been reclassified.
(b)    Beginning in 1Q18, clearing expense, which was previously included in other expense, was included with sub-custodian expense. Prior periods have been reclassified.
(c)    Beginning in 1Q18, M&I, litigation and restructuring charges are no longer separately disclosed. Expenses previously reported in this line have been reclassified to existing expense categories, primarily other expense.

8

THE BANK OF NEW YORK MELLON CORPORATION
CAPITAL AND LIQUIDITY
	2018				2017
(dollars in millions)	March 31				Dec. 31			Sept. 30			June 30			March 31
Consolidated regulatory capital ratios - fully phased-in basis: (a)
Standardized Approach:
CET1 capital	$	18,334			$	17,838		$	18,141		$	17,629		$	16,835
Tier 1 capital	21,835				21,339			21,649			21,147			20,363
Total capital	23,340				22,838			23,157			21,960			21,187
Risk-weighted assets	156,136				155,324			152,995			152,645			146,122
CET1 ratio	11.7		%		11.5		%	11.9		%	11.5		%	11.5		%
Tier 1 capital ratio	14.0				13.7			14.2			13.9			13.9
Total capital ratio	14.9				14.7			15.1			14.4			14.5
Advanced Approaches:
CET1 capital	$	18,334			$	17,838		$	18,141		$	17,629		$	16,835
Tier 1 capital	21,835				21,339			21,649			21,147			20,363
Total capital	23,110				22,608			22,941			21,749			20,962
Risk-weighted assets	171,594				173,711			169,293			169,478			168,534
CET1 ratio	10.7		%		10.3		%	10.7		%	10.4		%	10.0		%
Tier 1 capital ratio	12.7				12.3			12.8			12.5			12.1
Total capital ratio	13.5				13.0			13.6			12.8			12.4
Tier 1 leverage ratio	6.5		%		6.4		%	6.6		%	6.5		%	6.4		%
SLR:
Leverage exposure	$	367,767			$	360,543		$	355,960		$	352,448		$	346,772
SLR	5.9		%		5.9		%	6.1		%	6.0		%	5.9		%
Average liquidity coverage ratio (“LCR”)	116		%		118		%	119		%	116		%	117		%
Consolidated regulatory capital ratios - transitional basis:
Advanced Approaches:
CET1 ratio	N/A				10.7		%	11.1		%	10.8		%	10.4		%
Tier 1 capital ratio	N/A				12.7			13.2			12.9			12.5
Total capital ratio	N/A				13.4			14.0			13.2			12.8
Tier 1 leverage ratio	N/A				6.6		%	6.8		%	6.7		%	6.6		%
SLR	N/A				6.1			6.3			6.2			6.1
(a)    Regulatory capital ratios for March 31, 2018 are preliminary. For our CET1, Tier 1 capital and Total capital ratios, our effective capital ratios under the U.S. capital rules are the lower of the ratios as calculated under the Standardized and Advanced Approaches, which for the periods noted above was the Advanced Approaches.
N/A - Not applicable. Beginning Jan. 1, 2018, regulatory capital ratios are fully phased-in.

9

THE BANK OF NEW YORK MELLON CORPORATION
KEY MARKET METRICS
																1Q18 vs.
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
Key market metrics:
S&P 500 Index (a)	2641			2674			2519			2423			2363			(1	)%	12	%
S&P 500 Index - daily average	2733			2603			2467			2398			2326			5		17
FTSE 100 Index (a)	7057			7688			7373			7313			7323			(8	)	(4	)
FTSE 100 Index - daily average	7354			7477			7380			7391			7274			(2	)	1
MSCI EAFE (a)	2006			2051			1974			1883			1793			(2	)	12
MSCI EAFE - daily average	2073			2005			1934			1856			1749			3		19
Barclays Capital Global Aggregate BondSM Index (a)(b)	491			485			480			471			459			1		7
NYSE and NASDAQ share volume (in billions)	210			188			179			199			186			12		13
Average interest on excess reserves paid by the Federal Reserve	1.53		%	1.30		%	1.25		%	1.04		%	0.79		%	23	bps	74	bps
Foreign exchange rates vs. U.S. dollar:
British pound (a)	$	1.41		$	1.35		$	1.34		$	1.30		$	1.25		4	%	13	%
British pound - average rate	1.39			1.33			1.31			1.28			1.24			5		12
Euro (a)	1.23			1.20			1.18			1.14			1.07			3		15
Euro - average rate	1.23			1.18			1.17			1.10			1.07			4		15
(a)    Period end.
(b)    Unhedged in U.S. dollar terms.
bps - basis points.

10

THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SERVICES BUSINESS
																1Q18 vs.
(dollars in millions)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
Revenue:
Investment services fees:
Asset servicing (ex. securities lending revenue)	$	1,095		$	1,061		$	1,040		$	1,019		$	998		3	%	10	%
Securities lending revenue	48			45			41			42			40			7		20
Clearing services	414			400			381			393			375			4		10
Issuer services	260			196			288			241			250			33		4
Treasury services	138			136			141			139			139			1		(1	)
Total investment services fees	1,955			1,838			1,891			1,834			1,802			6		8
Foreign exchange and other trading revenue	169			168			154			145			153			1		10
Other (a)	126			135			142			136			129			(7	)	(2	)
Total fee and other revenue	2,250			2,141			2,187			2,115			2,084			5		8
Net interest revenue	844			813			777			761			707			4		19
Total revenue	3,094			2,954			2,964			2,876			2,791			5		11
Provision for credit losses	(7		)	(2		)	(2		)	(3		)	—			N/M		N/M
Noninterest expense (ex. amortization of intangible assets)	1,913			2,060			1,837			1,889			1,812			(7	)	6
Amortization of intangible assets	36			37			37			38			37			(3	)	(3	)
Total noninterest expense	1,949			2,097			1,874			1,927			1,849			(7	)	5
Income before taxes	$	1,152		$	859		$	1,092		$	952		$	942		34	%	22	%
Pre-tax operating margin	37		%	29		%	37		%	33		%	34		%
Total revenue by line of business: (b)
Asset Servicing	$	1,519		$	1,459		$	1,420		$	1,378		$	1,346		4	%	13	%
Pershing	581			569			542			547			522			2		11
Issuer Services	418			352			442			398			396			19		6
Treasury Services	321			322			316			311			302			—		6
Clearance and Collateral Management	255			252			244			242			225			1		13
Total revenue by line of business	$	3,094		$	2,954		$	2,964		$	2,876		$	2,791		5	%	11	%
(a)    Other revenue includes investment management fees, financing-related fees, distribution and servicing revenue and investment and other income.
(b)    See "Change in Presentation" in the First Quarter 2018 Earnings Release for additional information on the Investment Services business.
N/M - Not meaningful.

11

THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SERVICES BUSINESS
											1Q18 vs.
(dollars in millions unless otherwise noted)	1Q18		4Q17		3Q17		2Q17		1Q17		4Q17		1Q17
Average loans	$	39,200	$	38,845	$	38,038	$	40,931	$	42,818	1	%	(8	)%
Average assets	$	278,095	$	260,494	$	252,461	$	254,724	$	251,027	7	%	11	%
Average deposits	$	214,130	$	204,680	$	198,299	$	200,417	$	197,690	5	%	8	%
AUC/A at period end (in trillions) (a)(b)	$	33.5	$	33.3	$	32.2	$	31.1	$	30.6	1	%	9	%
Market value of securities on loan at period end (in billions) (c)	$	436	$	408	$	382	$	336	$	314	7	%	39	%
Pershing
Average active clearing accounts (U.S. platform) (in thousands)	6,075		6,126		6,203		6,159		6,058		(1	)%	—
Average long-term mutual fund assets (U.S. platform)	$	514,542	$	508,873	$	500,998	$	480,532	$	460,977	1	%	12	%
Average investor margin loans (U.S. platform)	$	10,930	$	9,822	$	8,886	$	9,812	$	10,740	11	%	2	%
Clearance and Collateral Management
Average tri-party repo balances (in billions)	$	2,698	$	2,606	$	2,534	$	2,498	$	2,373	4	%	14	%
(a)    March 31, 2018 information is preliminary.
(b)    Includes the AUC/A of CIBC Mellon of $1.3 trillion at March 31, 2018, Dec. 31, 2017 and Sept. 30, 2017 and $1.2 trillion at June 30, 2017 and March 31, 2017.
(c)    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 $73 billion at March 31, 2018, $71 billion at Dec. 31, 2017, $68 billion at Sept. 30, 2017, $66 billion at June 30, 2017 and $65 billion at March 31, 2017.

12

THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT MANAGEMENT BUSINESS
																1Q18 vs.
(dollars in millions)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
Revenue:
Investment management fees (a)	$	898		$	898		$	871		$	845		$	814		—	%	10	%
Performance fees	48			50			15			17			12			(4	)	300
Investment management and performance fees (b)	946			948			886			862			826			—		15
Distribution and servicing	50			51			51			53			52			(2	)	(4	)
Other (a)	16			(25		)	(19		)	(16		)	(1		)	N/M		N/M
Total fee and other revenue (a)	1,012			974			918			899			877			4		15
Net interest revenue	76			74			82			87			86			3		(12	)
Total revenue	1,088			1,048			1,000			986			963			4		13
Provision for credit losses	2			1			(2		)	—			3			N/M		N/M
Noninterest expense (ex. amortization of intangible assets)	692			756			687			683			668			(8	)	4
Amortization of intangible assets	13			15			15			15			15			(13	)	(13	)
Total noninterest expense	705			771			702			698			683			(9	)	3
Income before taxes	$	381		$	276		$	300		$	288		$	277		38	%	38	%
Income before taxes (ex. amortization of intangible assets) – Non-GAAP	$	394		$	291		$	315		$	303		$	292		35	%	35	%
Pre-tax operating margin	35		%	26		%	30		%	29		%	29		%
Adjusted pre-tax operating margin – Non-GAAP (c)	39		%	29		%	34		%	33		%	32		%
Total revenue by line of business: (d)
Asset Management	$	770		$	738		$	693		$	683		$	661		4	%	16	%
Wealth Management	318			310			307			303			302			3		5
Total revenue by line of business	$	1,088		$	1,048		$	1,000		$	986		$	963		4	%	13	%
Average loans	$	16,876		$	16,813		$	16,724		$	16,560		$	16,153		—	%	4	%
Average assets	$	31,963		$	31,681		$	31,689		$	31,355		$	31,067		1	%	3	%
Average deposits	$	13,363		$	11,633		$	12,374		$	14,866		$	15,781		15	%	(15	)%
(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)    On a constant currency basis, investment management and performance fees increased 10% (Non-GAAP) compared with 1Q17. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 19 for the reconciliation of this Non-GAAP measure.
(c)    Net of distribution and servicing expense. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 19 for the reconciliation of this Non-GAAP measure. In 1Q18, the adjusted pre-tax margin – Non-GAAP for prior periods was restated to include amortization of intangible assets and the provision for credit losses.
(d)    See "Change in Presentation" in the First Quarter 2018 Earnings Release for additional information on the Investment Management business.
N/M - Not meaningful.

13

THE BANK OF NEW YORK MELLON CORPORATION
AUM BY PRODUCT, AUM FLOWS AND WEALTH MANAGEMENT CLIENT ASSETS
																1Q18 vs.
(dollars in billions)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
AUM by product type (a)(b)
Equity	$	161		$	161		$	158		$	163		$	158		—	%	2	%
Fixed income	206			206			206			198			191			—		8
Index	333			350			333			324			330			(5	)	1
Liability-driven investments, including currency overlay	700			667			622			607			584			5		20
Multi-asset and alternative investments	185			214			207			192			188			(14	)	(2	)
Cash	283			295			298			287			276			(4	)	3
Total AUM by product type	$	1,868		$	1,893		$	1,824		$	1,771		$	1,727		(1	)%	8	%
Changes in AUM(a)(b)
Beginning balance of AUM	$	1,893		$	1,824		$	1,771		$	1,727		$	1,648
Net inflows (outflows):
Long-term strategies:
Equity	—			(6		)	(2		)	(2		)	(4		)
Fixed income	7			(2		)	4			2			2
Liability-driven investments, including currency overlay	13			23			(2		)	15			14
Multi-asset and alternative investments	(3		)	2			3			1			2
Total long-term active strategies inflows	17			17			3			16			14
Index	(13		)	(1		)	(3		)	(13		)	—
Total long-term strategies inflows	4			16			—			3			14
Short-term strategies:
Cash	(14		)	(4		)	10			11			13
Total net (outflows) inflows	(10		)	12			10			14			27
Net market impact	(14		)	47			17			1			41
Net currency impact	29			10			26			29			11
Divestiture/Other (d)	(30		)	—			—			—			—
Ending balance of AUM	$	1,868		$	1,893		$	1,824		$	1,771		$	1,727		(1	)%	8	%
Wealth Management client assets (a)(c)	$	246		$	251		$	245		$	239		$	236		(2	)%	4	%
(a)    March 31, 2018 information is preliminary.
(b)    Excludes securities lending cash management assets and assets managed in the Investment Services business.
(c)    Includes AUM and AUC/A in the Wealth Management business.
(d)    Primarily reflects a change in methodology beginning in 1Q18 to exclude AUM related to equity method investments as well as the CenterSquare divestiture.

14

THE BANK OF NEW YORK MELLON CORPORATION
OTHER SEGMENT
(in millions)	1Q18			4Q17			3Q17			2Q17			1Q17
Fee revenue	$	57		$	(221	)	$	50		$	113		$	62
Net securities (losses) gains	(49		)	(26		)	19			—			10
Fee and other revenue (loss)	8			(247		)	69			113			72
Net interest (expense)	(1		)	(36		)	(20		)	(22		)	(1		)
Total revenue (loss)	7			(283		)	49			91			71
Provision for credit losses	—			(5		)	(2		)	(4		)	(8		)
Noninterest expense	87			135			77			28			107
(Loss) income before taxes	$	(80	)	$	(413	)	$	(26	)	$	67		$	(28	)
Average loans and leases	$	2,530		$	1,114		$	1,182		$	1,302		$	1,341
Average assets	$	48,117		$	58,611		$	61,559		$	56,436		$	54,106

15

THE BANK OF NEW YORK MELLON CORPORATION
SELECT FULL-YEAR INFORMATION
										2017 vs.		2016 vs.
(dollars in millions unless otherwise noted)	2017			2016			2015			2016		2015
Investment Services business
Total revenue by line of business: (a)
Asset Servicing	$	5,603		$	5,504		$	5,486		2	%	—	%
Pershing	2,180			1,979			1,928			10		3
Issuer Services	1,588			1,585			1,514			—		5
Treasury Services	1,251			1,136			1,082			10		5
Clearance and Collateral Management	963			892			789			8		13
Total revenue by line of business	11,585			11,096			10,799			4		3
Provision for credit losses	(7		)	8			28			N/M		N/M
Noninterest expense (ex. amortization of intangible assets)	7,598			7,187			7,340			6		(2	)
Amortization of intangible assets	149			155			162			(4	)	(4	)
Total noninterest expense	7,747			7,342			7,502			6		(2	)
Income before taxes	$	3,845		$	3,746		$	3,269		3	%	15	%
Income before taxes (ex. amortization of intangible assets) – Non-GAAP	$	3,994		$	3,901		$	3,431		2	%	14	%
Pre-tax operating margin	33		%	34		%	30		%
Investment Management business
Total revenue by line of business: (a)
Asset Management	$	2,775		$	2,615		$	2,781		6	%	(6	)%
Wealth Management	1,222			1,136			1,125			8		1
Total revenue by line of business	3,997			3,751			3,906			7		(4	)
Provision for credit losses	2			6			(1		)	N/M		N/M
Noninterest expense (ex. amortization of intangible assets)	2,794			2,696			2,762			4		(2	)
Amortization of intangible assets	60			82			97			(27	)	(15	)
Total noninterest expense	2,854			2,778			2,859			3		(3	)
Income before taxes	$	1,141		$	967		$	1,048		18	%	(8	)%
Income before taxes (ex. amortization of intangible assets) – Non-GAAP	$	1,201		$	1,049		$	1,145		14	%	(8	)%
Pre-tax operating margin	29		%	26		%	27		%
Adjusted pre-tax operating margin – Non-GAAP (b)	32		%	29		%	30		%
Wealth Management client assets (in billions)(c)	$	251		$	228		$	216		10	%	6	%
(a)    See "Change in Presentation" in the First Quarter 2018 Earnings Release for additional information on our businesses.
(b)    Net of distribution and servicing expense. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 19 for the reconciliation of this Non-GAAP measure. Prior periods have been restated to include amortization of intangible assets and the provision for credit losses.
(c)    Includes AUM and AUC/A in the Wealth Management business.
N/M - Not meaningful.

16

THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SECURITIES PORTFOLIO
(dollars in millions)	Dec. 31, 2017			1Q18 change in unrealized gain (loss)			March 31, 2018					Fair value as a % of amortized cost (a)		Unrealized gain (loss)				Ratings (b)
							Amortized cost		Fair value									AAA/ AA-		A+/ A-		BBB+/ BBB-		BB+ and lower		Not rated
	Fair value
Agency RMBS	$	49,746		$	(556	)	$	50,113	$	49,093		98	%	$	(1,020	)		100	%	—	%	—	%	—	%	—	%
U.S. Treasury	24,848			(58		)	23,706		23,545			99		(161		)		100		—		—		—		—
Sovereign debt/sovereign guaranteed	14,128			(11		)	14,613		14,732			101		119				74		6		19		1		—
Non-agency RMBS (c)	1,640			(13		)	1,229		1,534			90		305				3		1		10		69		17
European floating rate notes	271			1			271		268			97		(3		)		50		50		—		—		—
Commercial MBS	11,394			(13		)	12,324		12,280			100		(44		)		100		—		—		—		—
State and political subdivisions	2,973			(21		)	2,756		2,742			100		(14		)		76		17		4		—		3
Foreign covered bonds	2,615			(13		)	2,808		2,806			100		(2		)		100		—		—		—		—
Corporate bonds	1,255			(20		)	1,236		1,222			99		(14		)		17		68		15		—		—
CLOs	2,909			(3		)	3,121		3,129			100		8				98		—		—		1		1
U.S. Government agencies	2,603			(46		)	2,682		2,669			100		(13		)		100		—		—		—		—
Consumer ABS	1,043			(2		)	277		278			100		1				93		—		7		—		—
Other (d)	4,483			(13		)	3,920		3,905			100		(15		)		80		18		—		—		2
Total investment securities	$	119,908	(e)	$	(768	)	$	119,056	$	118,203	(e)	99	%	$	(853	)	(e)(f)	93	%	3	%	3	%	1	%	—	%
(a)    Amortized cost before impairments.
(b)    Represents ratings by S&P, or the equivalent.
(c)    Includes RMBS that were included in the former Grantor Trust of $1,091 million at Dec. 31, 2017 and $1,019 million at March 31, 2018.
(d)    Includes commercial paper with a fair value of $700 million at both Dec. 31, 2017 and March 31, 2018, respectively. Also includes $963 million of money market funds at Dec. 31, 2017. In 1Q18, we adopted the new accounting guidance included in ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. As a result, the money market fund investments were reclassified to trading assets, primarily from available-for-sale securities.
(e)    Includes net unrealized losses on derivatives hedging securities available-for-sale of $147 million at Dec. 31, 2017 and a net unrealized gain of $238 million at March 31, 2018.
(f)    Unrealized loss of $29 million at March 31, 2018 related to available-for-sale securities, net of hedges.

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THE BANK OF NEW YORK MELLON CORPORATION
ALLOWANCE FOR CREDIT LOSSES AND NONPERFORMING ASSETS
	2018			2017
(dollars in millions)	March 31			Dec. 31			Sept. 30			June 30			March 31
Allowance for credit losses - beginning of period:
Allowance for loan losses	$	159		$	161		$	165		$	164		$	169
Allowance for lending-related commitments	102			104			105			112			112
Allowance for credit losses - beginning of period	$	261		$	265		$	270		$	276		$	281
Net recoveries (charge-offs):
Charge-offs	—			—			—			—			(1		)
Recoveries	—			2			1			1			1
Total net recoveries (charge-offs)	—			2			1			1			—
Provision for credit losses	(5		)	(6		)	(6		)	(7		)	(5		)
Allowance for credit losses - end of period	$	256		$	261		$	265		$	270		$	276
Allowance for credit losses - end of period:
Allowance for loan losses	$	156		$	159		$	161		$	165		$	164
Allowance for lending-related commitments	100			102			104			105			112
Allowance for credit losses - end of period	$	256		$	261		$	265		$	270		$	276
Allowance for loan losses as a percentage of total loans	0.26		%	0.26		%	0.27		%	0.27		%	0.27		%
Nonperforming assets	$	85		$	90		$	94		$	100		$	107

18

THE BANK OF NEW YORK MELLON CORPORATION
SUPPLEMENTAL INFORMATION – EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
BNY Mellon has included in this Financial Supplement certain Non-GAAP financial measures on a tangible basis, as a supplement to GAAP information. Tangible common shareholders’ equity excludes goodwill and intangible assets, net of deferred tax liabilities. BNY Mellon believes that the return on tangible common equity measure is an additional useful measure for investors because it presents a measure of those assets that can generate income. BNY Mellon has provided a measure of tangible book value per common share, which it believes provides additional useful information as to the level of tangible assets in relation to shares of common stock outstanding.
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 the comparison 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.
BNY Mellon has presented the operating margin for the Investment Management business net of distribution and servicing expense that was passed to third parties who distribute or service our managed funds. BNY Mellon believes that this measure is useful when evaluating the performance of the Investment Management business relative to industry competitors.
The presentation of the growth rates of investment management and performance fees on a constant currency basis permits investors to assess the significance of changes in foreign currency exchange rates. Growth rates on a constant currency basis were determined by applying the current period foreign currency exchange rates to the prior period revenue. BNY Mellon believes that this presentation, as a supplement to GAAP information, gives investors a clearer picture of the related revenue results without the variability caused by fluctuations in foreign currency exchange rates.
Notes:
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.
Return on common equity and tangible common equity reconciliation
(dollars in millions)	1Q18			4Q17			3Q17			2Q17			1Q17
Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP	$	1,135		$	1,126		$	983		$	926		$	880
Add: Amortization of intangible assets	49			52			52			53			52
Less: Tax impact of amortization of intangible assets	12			18			17			19			18
Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets – Non-GAAP	$	1,172		$	1,160		$	1,018		$	960		$	914
Average common shareholders’ equity	$	37,593		$	36,952		$	36,780		$	35,862		$	34,965
Less: Average goodwill	17,581			17,518			17,497			17,408			17,338
Average intangible assets	3,397			3,437			3,487			3,532			3,578
Add: Deferred tax liability – tax deductible goodwill (a)	1,042			1,034			1,561			1,542			1,518
Deferred tax liability – intangible assets (a)	716			718			1,092			1,095			1,100
Average tangible common shareholders’ equity – Non-GAAP	$	18,373		$	17,749		$	18,449		$	17,559		$	16,667
Return on common equity – GAAP	12.2		%	12.1		%	10.6		%	10.4		%	10.2		%
Return on tangible common equity – Non-GAAP	25.9		%	25.9		%	21.9		%	21.9		%	22.2		%
(a)    Deferred tax liabilities, for the prior periods, are based on fully phased-in U.S. capital rules.

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THE BANK OF NEW YORK MELLON CORPORATION
SUPPLEMENTAL INFORMATION – EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
Book value and tangible book value per common share reconciliation	2018			2017
(dollars in millions except common shares)	March 31			Dec. 31			Sept. 30			June 30			March 31
BNY Mellon shareholders’ equity at period end – GAAP	$	41,728		$	41,251		$	40,523		$	39,974		$	39,138
Less: Preferred stock	3,542			3,542			3,542			3,542			3,542
BNY Mellon common shareholders’ equity at period end – GAAP	38,186			37,709			36,981			36,432			35,596
Less: Goodwill	17,596			17,564			17,543			17,457			17,355
Intangible assets	3,370			3,411			3,461			3,506			3,549
Add: Deferred tax liability – tax deductible goodwill (a)	1,042			1,034			1,561			1,542			1,518
Deferred tax liability – intangible assets (a)	716			718			1,092			1,095			1,100
BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP	$	18,978		$	18,486		$	18,630		$	18,106		$	17,310
Period-end common shares outstanding (in thousands)	1,010,676			1,013,442			1,024,022			1,033,156			1,039,877
Book value per common share – GAAP	$	37.78		$	37.21		$	36.11		$	35.26		$	34.23
Tangible book value per common share – Non-GAAP	$	18.78		$	18.24		$	18.19		$	17.53		$	16.65
(a)    Deferred tax liabilities, for the prior periods, are based on fully phased-in U.S. capital rules.
Net interest margin reconciliation
(dollars in millions)	1Q18			4Q17			3Q17			2Q17			1Q17
Net interest revenue – GAAP	$	919		$	851		$	839		$	826		$	792
Add: Tax equivalent adjustment	6			11			12			12			12
Net interest revenue (FTE) – Non-GAAP	$	925		$	862		$	851		$	838		$	804
Average interest-earning assets	$	302,069		$	297,166		$	291,841		$	289,496		$	283,421
Net interest margin – GAAP (a)	1.22		%	1.14		%	1.15		%	1.14		%	1.13		%
Net interest margin (FTE) – Non-GAAP (a)	1.23		%	1.16		%	1.16		%	1.16		%	1.14		%
(a)    Net interest margin is annualized.

20

THE BANK OF NEW YORK MELLON CORPORATION
SUPPLEMENTAL INFORMATION – EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
Pre-tax operating margin reconciliation - Investment Management business
(dollars in millions)	1Q18			4Q17			3Q17			2Q17			1Q17
Income before income taxes – GAAP	$	381		$	276		$	300		$	288		$	277
Total revenue – GAAP	$	1,088		$	1,048		$	1,000		$	986		$	963
Less: Distribution and servicing expense	110			107			110			104			101
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP	$	978		$	941		$	890		$	882		$	862
Pre-tax operating margin – GAAP (a)	35		%	26		%	30		%	29		%	29		%
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a)	39		%	29		%	34		%	33		%	32		%
(a)    Income before taxes divided by total revenue.
Pre-tax operating margin reconciliation - Investment Management business
(dollars in millions)							2017			2016			2015
Income before income taxes – GAAP							$	1,141		$	967		$	1,048
Total revenue – GAAP							$	3,997		$	3,751		$	3,906
Less: Distribution and servicing expense							422			404			378
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP							$	3,575		$	3,347		$	3,528
Pre-tax operating margin – GAAP (a)							29		%	26		%	27		%
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a)							32		%	29		%	30		%
(a)    Income before taxes divided by total revenue.
Constant currency reconciliations													1Q18 vs.
(dollars in millions)							1Q18			1Q17			1Q17
Consolidated:
Investment management and performance fees							$	960		$	842		14		%
Impact of changes in foreign currency exchange rates							—			37
Adjusted investment management and performance fees – Non-GAAP							$	960		$	879		9		%
Investment Management business:
Investment management and performance fees							$	946		$	826		15		%
Impact of changes in foreign currency exchange rates							—			37
Adjusted investment management and performance fees – Non-GAAP							$	946		$	863		10		%

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