The Bank of New York Mellon Corporation (BK) 8-K Bny Mellon Reports First Quarter 2019 Earnings of

The Bank of New York Mellon Corporation

Financial Supplement

First Quarter 2019

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
Capital and Liquidity		8
Business Segment Results
Investment Services Business		9
Investment Management Business		11
AUM by Product, AUM Flows and Wealth Management Client Assets		12
Other Segment		13
Other
Investment Securities Portfolio		14
Allowance for Credit Losses and Nonperforming Assets		15
Supplemental Information – Explanation of GAAP and Non-GAAP Financial Measures		16

THE BANK OF NEW YORK MELLON CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(dollars in millions, except per common share amounts, or unless otherwise noted)																1Q19 vs.
	1Q19			4Q18			3Q18			2Q18			1Q18			4Q18		1Q18
Selected income statement data
Fee revenue	$	3,031		$	3,146		$	3,168		$	3,209		$	3,319		(4	)%	(9	)%
Net securities gains (losses)	1			—			—			1			(49		)	N/M		N/M
Fee and other revenue	3,032			3,146			3,168			3,210			3,270			(4	)	(7	)
Income (loss) from consolidated investment management funds	26			(24		)	10			12			(11		)	N/M		N/M
Net interest revenue	841			885			891			916			919			(5	)	(8	)
Total revenue	3,899			4,007			4,069			4,138			4,178			(3	)	(7	)
Provision for credit losses	7			—			(3		)	(3		)	(5		)	N/M		N/M
Noninterest expense	2,699			2,987			2,738			2,747			2,739			(10	)	(1	)
Income before income taxes	1,193			1,020			1,334			1,394			1,444			17		(17	)
Provision for income taxes	237			150			220			286			282			58		(16	)
Net income	$	956		$	870		$	1,114		$	1,108		$	1,162		10	%	(18	)%
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	910		$	832		$	1,075		$	1,055		$	1,135		9	%	(20	)%
Diluted earnings per common share	$	0.94		$	0.84		$	1.06		$	1.03		$	1.10		12	%	(15	)%
Average common shares and equivalents outstanding - diluted (in thousands)	965,960			988,650			1,003,665			1,014,357			1,021,731			(2	)%	(5	)%
Financial ratios(Quarterly returns are annualized)
Pre-tax operating margin	31		%	25		%	33		%	34		%	35		%
Return on common equity (a)	10.0		%	8.7		%	11.2		%	11.2		%	12.2		%
Return on tangible common equity – Non-GAAP (a)	20.7		%	17.9		%	23.1		%	23.5		%	25.9		%
Percent of non-U.S. total revenue	36		%	36		%	37		%	37		%	37		%
Period end
Assets under custody and/or administration (“AUC/A”) (in trillions) (b)	$	34.5		$	33.1		$	34.5		$	33.6		$	33.5		4	%	3	%
Assets under management (“AUM”) (in trillions)	$	1.84		$	1.72		$	1.83		$	1.81		$	1.87		7	%	(1	)%
Full-time employees	49,800			51,300			52,000			52,000			52,100			(3	)%	(4	)%
Book value per common share (a)	$	39.36		$	38.63		$	38.45		$	37.97		$	37.78
Tangible book value per common share – Non-GAAP (a)	$	19.74		$	19.04		$	19.35		$	19.00		$	18.78
Cash dividends per common share	$	0.28		$	0.28		$	0.28		$	0.24		$	0.24
Common dividend payout ratio	30		%	33		%	26		%	23		%	22		%
Closing stock price per common share	$	50.43		$	47.07		$	50.99		$	53.93		$	51.53
Market capitalization	$	48,288		$	45,207		$	50,418		$	53,927		$	52,080
Common shares outstanding (in thousands)	957,517			960,426			988,777			999,945			1,010,676
Capital ratios at period end(c)
Common Equity Tier 1 ("CET1") ratio	11.0		%	10.7		%	11.2		%	11.0		%	10.7		%
Tier 1 capital ratio	13.1		%	12.8		%	13.3		%	13.1		%	12.7		%
Total capital ratio	13.9		%	13.6		%	14.1		%	13.8		%	13.4		%
Supplementary leverage ratio ("SLR")	6.3		%	6.0		%	6.4		%	6.1		%	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 16 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, 2019, $1.2 trillion at Dec. 31, 2018, $1.4 trillion at Sept. 30, 2018 and June 30, 2018 and $1.3 trillion at March 31, 2018.
(c)    Regulatory capital ratios for March 31, 2019 are preliminary. All risk-based capital ratios are presented using Advanced Approaches risk-weightings.
N/M - Not meaningful.

3

THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENT
(dollars in millions, except per share amounts; common shares in thousands)																1Q19 vs.
	1Q19			4Q18			3Q18			2Q18			1Q18			4Q18		1Q18
Revenue
Investment services fees:
Asset servicing fees	$	1,122		$	1,126		$	1,157		$	1,157		$	1,168		—	%	(4	)%
Clearing services fees (a)	398			398			393			401			424			—		(6	)
Issuer services fees	251			286			287			266			260			(12	)	(3	)
Treasury services fees	132			139			137			140			138			(5	)	(4	)
Total investment services fees (a)	1,903			1,949			1,974			1,964			1,990			(2	)	(4	)
Investment management and performance fees (a)	841			884			912			901			950			(5	)	(11	)
Foreign exchange and other trading revenue	170			181			155			187			209			(6	)	(19	)
Financing-related fees	51			50			52			53			52			2		(2	)
Distribution and servicing	31			35			34			34			36			(11	)	(14	)
Investment and other income	35			47			41			70			82			N/M		N/M
Total fee revenue	3,031			3,146			3,168			3,209			3,319			(4	)	(9	)
Net securities gains (losses)	1			—			—			1			(49		)	N/M		N/M
Total fee and other revenue	3,032			3,146			3,168			3,210			3,270			(4	)	(7	)
Income (loss) from consolidated investment management funds	26			(24		)	10			12			(11		)	N/M		N/M
Net interest revenue	841			885			891			916			919			(5	)	(8	)
Total revenue	3,899			4,007			4,069			4,138			4,178			(3	)	(7	)
Provision for credit losses	7			—			(3		)	(3		)	(5		)	N/M		N/M
Noninterest expense
Staff	1,524			1,602			1,478			1,489			1,576			(5	)	(3	)
Professional, legal and other purchased services	325			383			332			328			291			(15	)	12
Software and equipment	283			300			262			266			234			(6	)	21
Net occupancy	137			196			139			156			139			(30	)	(1	)
Sub-custodian and clearing	105			115			106			110			119			(9	)	(12	)
Distribution and servicing	91			95			99			106			106			(4	)	(14	)
Business development	45			64			51			62			51			(30	)	(12	)
Bank assessment charges	31			22			49			47			52			41		(40	)
Amortization of intangible assets	29			35			48			48			49			(17	)	(41	)
Other	129			175			174			135			122			(26	)	6
Total noninterest expense	2,699			2,987			2,738			2,747			2,739			(10	)	(1	)
Income before income taxes	1,193			1,020			1,334			1,394			1,444			17		(17	)
Provision for income taxes	237			150			220			286			282			58		(16	)
Net income	956			870			1,114			1,108			1,162			10		(18	)
Net (income) loss attributable to noncontrolling interests	(10		)	11			(3		)	(5		)	9			N/M		N/M
Preferred stock dividends	(36		)	(49		)	(36		)	(48		)	(36		)	N/M		N/M
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	910		$	832		$	1,075		$	1,055		$	1,135		9	%	(20	)%
Average common shares and equivalents outstanding: Basic	962,397			984,343			999,808			1,010,179			1,016,797			(2	)%	(5	)%
Diluted	965,960			988,650			1,003,665			1,014,357			1,021,731			(2	)%	(5	)%
Earnings per common share: Basic	$	0.94		$	0.84		$	1.07		$	1.04		$	1.11		12	%	(15	)%
Diluted	$	0.94		$	0.84		$	1.06		$	1.03		$	1.10		12	%	(15	)%
(a)    In 1Q19, we reclassified certain platform-related fees to clearing services fees from investment management and performance fees. Prior periods have been reclassified.
N/M - Not meaningful.

4

THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
	2019			2018
(in millions)	March 31			Dec. 31			Sept. 30			June 30			March 31
Assets
Cash and due from:
Banks	$	5,980		$	5,864		$	5,047		$	5,361		$	4,636
Interest-bearing deposits with the Federal Reserve and other central banks	60,699			67,988			74,725			75,116			91,431
Interest-bearing deposits with banks	13,681			14,148			14,519			16,134			15,186
Federal funds sold and securities purchased under resale agreements	40,158			46,795			28,722			26,494			28,784
Securities	117,504			119,791			118,641			119,081			118,789
Trading assets	6,868			7,035			7,804			7,035			8,596
Loans	53,487			56,564			53,987			57,776			60,809
Allowance for loan losses	(146		)	(146		)	(140		)	(145		)	(156		)
Net loans	53,341			56,418			53,847			57,631			60,653
Premises and equipment (a)	3,010			1,832			1,832			1,752			1,702
Accrued interest receivable	651			671			640			663			610
Goodwill	17,367			17,350			17,390			17,418			17,596
Intangible assets	3,193			3,220			3,258			3,308			3,370
Other assets	23,228			21,298			22,846			22,507			21,638
Subtotal assets of operations	345,680			362,410			349,271			352,500			372,991
Assets of consolidated investment management funds, at fair value	452			463			499			428			606
Total assets	$	346,132		$	362,873		$	349,770		$	352,928		$	373,597
Liabilities
Deposits	$	222,382		$	238,778		$	231,590		$	230,560		$	241,844
Federal funds purchased and securities sold under repurchase agreements	11,761			14,243			10,158			13,200			21,600
Trading liabilities	3,892			3,479			3,536			3,580			3,365
Payables to customers and broker-dealers	19,310			19,731			18,683			19,123			20,172
Commercial paper	2,773			1,939			735			2,508			3,936
Other borrowed funds	3,932			3,227			2,934			3,053			1,550
Accrued taxes and other expenses	4,686			5,669			5,601			5,452			5,349
Other liabilities (a)	8,050			5,774			6,552			5,443			5,707
Long-term debt	27,874			29,163			28,113			28,260			27,939
Subtotal liabilities of operations	304,660			322,003			307,902			311,179			331,462
Liabilities of consolidated investment management funds, at fair value	3			2			7			3			11
Total liabilities	304,663			322,005			307,909			311,182			331,473
Temporary equity
Redeemable noncontrolling interests	122			129			211			189			184
Permanent equity
Preferred stock	3,542			3,542			3,542			3,542			3,542
Common stock	14			14			14			14			14
Additional paid-in capital	27,349			27,118			27,034			26,981			26,911
Retained earnings	29,382			28,652			28,098			27,306			26,496
Accumulated other comprehensive loss, net of tax	(2,990		)	(3,171		)	(2,983		)	(2,795		)	(2,343		)
Less: Treasury stock, at cost	(16,072		)	(15,517		)	(14,145		)	(13,543		)	(12,892		)
Total The Bank of New York Mellon Corporation shareholders’ equity	41,225			40,638			41,560			41,505			41,728
Nonredeemable noncontrolling interests of consolidated investment management funds	122			101			90			52			212
Total permanent equity	41,347			40,739			41,650			41,557			41,940
Total liabilities, temporary equity and permanent equity	$	346,132		$	362,873		$	349,770		$	352,928		$	373,597
(a)    In 1Q19, we adopted new accounting guidance included in Accounting Standards Update ("ASU") 2016-02, Leases, prospectively, which required the recognition of right-of-use assets (included in premises and equipment) and lease liabilities (included in other liabilities).

5

THE BANK OF NEW YORK MELLON CORPORATION
FEE AND OTHER REVENUE
															1Q19 vs.
(dollars in millions)	1Q19			4Q18			3Q18			2Q18		1Q18			4Q18		1Q18
Investment services fees:
Asset servicing fees	$	1,074		$	1,079		$	1,099		$	1,097	$	1,113		—	%	(4	)%
Securities lending revenue	48			47			58			60		55			2		(13	)
Clearing services fees (a)	398			398			393			401		424			—		(6	)
Issuer services fees	251			286			287			266		260			(12	)	(3	)
Treasury services fees	132			139			137			140		138			(5	)	(4	)
Total investment services fees (a)	1,903			1,949			1,974			1,964		1,990			(2	)	(4	)
Investment management and performance fees (a)(b)(c)	841			884			912			901		950			(5	)	(11	)
Foreign exchange and other trading revenue:
Foreign exchange	160			159			150			171		183			1		(13	)
Other trading revenue	10			22			5			16		26			N/M		N/M
Total foreign exchange and other trading revenue	170			181			155			187		209			(6	)	(19	)
Financing-related fees	51			50			52			53		52			2		(2	)
Distribution and servicing	31			35			34			34		36			(11	)	(14	)
Investment and other income:
Corporate/bank-owned life insurance	30			42			36			31		36			N/M		N/M
Expense reimbursements from joint venture	19			19			17			19		16			N/M		N/M
Asset-related gains	1			2			7			15		46			N/M		N/M
Seed capital (losses) gains (b)	(2		)	(8		)	8			3		—			N/M		N/M
Other (loss) income	(13		)	(8		)	(27		)	2		(16		)	N/M		N/M
Total investment and other income (b)	35			47			41			70		82			N/M		N/M
Total fee revenue	3,031			3,146			3,168			3,209		3,319			(4	)	(9	)
Net securities gains (losses)	1			—			—			1		(49		)	N/M		N/M
Total fee and other revenue	$	3,032		$	3,146		$	3,168		$	3,210	$	3,270		(4	)%	(7	)%
(a)    In 1Q19, we reclassified certain platform-related fees to clearing services fees from investment management and performance fees. Prior periods have been reclassified.
(b)    Excludes seed capital gains related to consolidated investment management funds, which are reflected in operations of consolidated investment management funds.
(c)    On a constant currency basis (Non-GAAP), investment management and performance fees decreased 9% compared with 1Q18. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 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
	1Q19				4Q18				3Q18				2Q18				1Q18
	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)	$	13,857	1.85	%	$	14,666	1.67	%	$	14,691	1.58	%	$	15,748	1.41	%	$	13,850	1.25	%
Interest-bearing deposits with the Federal Reserve and other central banks	63,583		0.87		63,916		0.89		61,216		0.80		69,676		0.77		79,068		0.64
Federal funds sold and securities purchased under resale agreements (a)	28,968		6.63		28,843		5.98		26,738		4.18		28,051		3.29		27,903		2.47
Margin loans	12,670		4.34		13,369		4.08		13,738		3.74		14,838		3.46		15,674		2.98
Non-margin loans:
Domestic offices	28,177		3.85		29,576		3.73		28,628		3.59		29,970		3.44		30,415		3.02
Foreign offices	10,511		3.32		10,889		3.10		11,441		2.98		12,258		2.87		12,517		2.51
Total non-margin loans	38,688		3.70		40,465		3.56		40,069		3.42		42,228		3.27		42,932		2.87
Securities:
U.S. government obligations	23,597		2.22		24,531		2.14		24,423		2.09		23,199		2.02		23,460		1.88
U.S. government agency obligations	64,867		2.63		64,496		2.54		64,612		2.40		63,022		2.37		62,975		2.23
State and political subdivisions - tax-exempt	2,206		2.71		2,263		2.63		2,453		2.77		2,677		2.75		2,875		2.62
Other securities	28,647		2.13		27,614		1.91		27,017		1.98		28,863		1.75		29,149		1.69
Trading securities	5,102		2.91		5,543		2.77		4,261		3.05		3,784		3.10		4,183		2.62
Total securities	124,419		2.45		124,447		2.33		122,766		2.28		121,545		2.19		122,642		2.05
Total interest-earning assets	$	282,185	2.75	%	$	285,706	2.60	%	$	279,218	2.33	%	$	292,086	2.14	%	$	302,069	1.85	%
Noninterest-earning assets	53,980				52,885				53,123				54,242				56,106
Total assets	$	336,165			$	338,591			$	332,341			$	346,328			$	358,175
Liabilities and total equity
Interest-bearing liabilities:
Interest-bearing deposits:
Domestic offices	$	70,562	1.29	%	$	72,929	1.19	%	$	57,942	0.97	%	$	54,200	0.78	%	$	51,612	0.55	%
Foreign offices	89,317		0.76		88,734		0.59		90,694		0.42		98,599		0.28		104,092		0.18
Total interest-bearing deposits	159,879		0.99		161,663		0.86		148,636		0.63		152,799		0.45		155,704		0.30
Federal funds purchased and securities sold under repurchase agreements (a)	11,922		11.26		10,980		10.95		14,199		5.33		18,146		3.48		18,963		2.29
Trading liabilities	1,305		2.25		1,330		1.86		1,150		2.32		1,198		2.43		1,569		2.26
Other borrowed funds	3,305		2.87		2,903		2.44		2,747		2.33		2,399		2.40		2,119		1.67
Commercial paper	1,377		2.44		353		2.41		3,102		2.10		3,869		2.13		3,131		1.59
Payables to customers and broker-dealers	16,108		1.76		15,727		1.61		16,252		1.23		16,349		1.10		17,101		0.75
Long-term debt	28,254		3.52		28,201		3.29		28,074		3.17		28,349		3.06		28,407		2.49
Total interest-bearing liabilities	$	222,150	1.96	%	$	221,157	1.75	%	$	214,160	1.37	%	$	223,109	1.14	%	$	226,994	0.82	%
Total noninterest-bearing deposits	54,583				58,972				60,677				64,768				71,005
Other noninterest-bearing liabilities	18,628				16,754				15,660				16,857				18,571
Total The Bank of New York Mellon Corporation shareholders’ equity	40,628				41,428				41,578				41,292				41,135
Noncontrolling interests	176				280				266				302				470
Total liabilities and shareholders’ equity	$	336,165			$	338,591			$	332,341			$	346,328			$	358,175
Net interest margin			1.20	%			1.24	%			1.27	%			1.26	%			1.22	%
Net interest margin (FTE) – Non-GAAP (b)			1.20	%			1.24	%			1.28	%			1.26	%			1.23	%
(a)    Includes the impact of offsetting under enforceable netting agreements of approximately $44 billion for 1Q19, $43 billion for 4Q18, $26 billion for 3Q18, $18 billion for 2Q18 and $14 billion for 1Q18. Excluding the impact of offsetting, the yield on federal funds sold and securities purchased under resale agreements would have been 2.63% for 1Q19, 2.41% for 4Q18, 2.12% for 3Q18, 2.01% for 2Q18 and 1.65% for 1Q18.  Excluding the impact of offsetting, the rate on federal funds purchased and securities sold under repurchase agreements would have been 2.40% for 1Q19, 2.24% for 4Q18, 1.88% for 3Q18, 1.75% for 2Q18 and 1.32% for 1Q18.
(b)    See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 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%, using dollar amounts in thousands and the actual number of days in the year.

7

THE BANK OF NEW YORK MELLON CORPORATION
CAPITAL AND LIQUIDITY
	2019			2018
(dollars in millions)	March 31			Dec. 31			Sept. 30			June 30			March 31
Consolidated regulatory capital ratios (a)
Standardized Approach:
CET1 capital	$	18,157		$	17,567		$	18,517		$	18,386		$	18,334
Tier 1 capital	21,639			21,044			22,002			21,877			21,835
Total capital	23,136			22,536			23,497			23,375			23,340
Risk-weighted assets	151,461			149,618			149,348			154,612			156,472
CET1 ratio	12.0		%	11.7		%	12.4		%	11.9		%	11.7		%
Tier 1 capital ratio	14.3			14.1			14.7			14.1			14.0
Total capital ratio	15.3			15.1			15.7			15.1			14.9
Advanced Approaches:
CET1 capital	$	18,157		$	17,567		$	18,517		$	18,386		$	18,334
Tier 1 capital	21,639			21,044			22,002			21,877			21,835
Total capital	22,946			22,349			23,299			23,174			23,121
Risk-weighted assets	165,532			164,671			165,137			167,580			171,910
CET1 ratio	11.0		%	10.7		%	11.2		%	11.0		%	10.7		%
Tier 1 capital ratio	13.1			12.8			13.3			13.1			12.7
Total capital ratio	13.9			13.6			14.1			13.8			13.4
Tier 1 leverage ratio	6.8		%	6.6		%	7.0		%	6.7		%	6.5		%
SLR:
Leverage exposure	$	344,790		$	347,943		$	341,566		$	355,773		$	367,818
SLR	6.3		%	6.0		%	6.4		%	6.1		%	5.9		%
Average liquidity coverage ratio (“LCR”)	118		%	118		%	121		%	118		%	116		%
(a)    Regulatory capital ratios for March 31, 2019 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.

8

THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SERVICES BUSINESS
																1Q19 vs.
(dollars in millions)	1Q19			4Q18			3Q18			2Q18			1Q18			4Q18		1Q18
Revenue:
Investment services fees:
Asset servicing fees (ex. securities lending revenue) (a)	$	1,059		$	1,063		$	1,084		$	1,080		$	1,095		—	%	(3	)%
Securities lending revenue	44			43			52			55			48			2		(8	)
Clearing services fees (b)	398			398			393			400			424			—		(6	)
Issuer services fees	251			286			288			265			260			(12	)	(3	)
Treasury services fees	132			139			136			140			138			(5	)	(4	)
Total investment services fees (b)	1,884			1,929			1,953			1,940			1,965			(2	)	(4	)
Foreign exchange and other trading revenue	157			163			161			172			169			(4	)	(7	)
Other (b)(c)	113			121			116			121			116			(7	)	(3	)
Total fee and other revenue	2,154			2,213			2,230			2,233			2,250			(3	)	(4	)
Net interest revenue	796			827			827			874			844			(4	)	(6	)
Total revenue	2,950			3,040			3,057			3,107			3,094			(3	)	(5	)
Provision for credit losses	8			6			1			1			(7		)	N/M		N/M
Noninterest expense (ex. amortization of intangible assets)	1,949			2,090			1,995			1,931			1,913			(7	)	2
Amortization of intangible assets	20			22			35			36			36			(9	)	(44	)
Total noninterest expense	1,969			2,112			2,030			1,967			1,949			(7	)	1
Income before taxes	$	973		$	922		$	1,026		$	1,139		$	1,152		6	%	(16	)%
Pre-tax operating margin	33		%	30		%	34		%	37		%	37		%
Total revenue by line of business:
Asset Servicing	$	1,407		$	1,435		$	1,458		$	1,520		$	1,519		(2	)%	(7	)%
Pershing	554			558			558			558			581			(1	)	(5	)
Issuer Services	396			441			453			431			418			(10	)	(5	)
Treasury Services	317			328			324			329			321			(3	)	(1	)
Clearance and Collateral Management	276			278			264			269			255			(1	)	8
Total revenue by line of business	$	2,950		$	3,040		$	3,057		$	3,107		$	3,094		(3	)%	(5	)%
(a)    Asset servicing fees include the fees from the Clearance and Collateral Management business.
(b)    In 1Q19, we reclassified certain platform-related fees to clearing services fees from investment management and performance fees. Prior periods have been reclassified.
(c)    Other revenue includes investment management fees, financing-related fees, distribution and servicing revenue and investment and other income.
N/M - Not meaningful.

9

THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SERVICES BUSINESS
											1Q19 vs.
(dollars in millions unless otherwise noted)	1Q19		4Q18		3Q18		2Q18		1Q18		4Q18		1Q18
Average loans	$	33,171	$	35,540	$	35,044	$	38,002	$	39,200	(7	)%	(15	)%
Average assets	$	255,891	$	262,584	$	246,276	$	264,387	$	278,095	(3	)%	(8	)%
Average deposits	$	195,082	$	203,416	$	192,741	$	203,064	$	214,130	(4	)%	(9	)%
AUC/A at period end (in trillions) (a)(b)	$	34.5	$	33.1	$	34.5	$	33.6	$	33.5	4	%	3	%
Market value of securities on loan at period end (in billions) (c)	$	377	$	373	$	415	$	432	$	436	1	%	(14	)%
Pershing
Average active clearing accounts (U.S. platform) (in thousands)	6,169		6,125		6,108		6,080		6,075		1	%	2	%
Average long-term mutual fund assets (U.S. platform)	$	507,606	$	489,491	$	527,336	$	512,645	$	514,542	4	%	(1	)%
Average investor margin loans (U.S. platform)	$	10,093	$	10,921	$	10,696	$	10,772	$	10,930	(8	)%	(8	)%
Clearance and Collateral Management
Average tri-party collateral management balances (in billions)	$	3,266	$	3,181	$	2,995	$	2,801	$	2,698	3	%	21	%
(a)    March 31, 2019 information is preliminary.
(b)    Includes the AUC/A of CIBC Mellon of $1.3 trillion at March 31, 2019, $1.2 trillion at Dec. 31, 2018, $1.4 trillion at Sept. 30, 2018 and June 30, 2018 and $1.3 trillion at March 31, 2018.
(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 $62 billion at March 31, 2019, $58 billion at Dec.31, 2018, $69 billion at Sept. 30, 2018, $70 billion at June 30, 2018 and $73 billion at March 31, 2018.

10

THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT MANAGEMENT BUSINESS
																1Q19 vs.
(dollars in millions)	1Q19			4Q18			3Q18			2Q18			1Q18			4Q18		1Q18
Revenue:
Investment management fees (a)	$	806		$	826		$	879		$	885		$	898		(2	)%	(10	)%
Performance fees	31			54			30			12			48			N/M		(35	)
Investment management and performance fees (b)	837			880			909			897			946			(5	)	(12	)
Distribution and servicing	45			45			47			48			50			—		(10	)
Other (a)	(18		)	(35		)	(18		)	(4		)	16			N/M		N/M
Total fee and other revenue (a)	864			890			938			941			1,012			(3	)	(15	)
Net interest revenue	75			73			77			77			76			3		(1	)
Total revenue	939			963			1,015			1,018			1,088			(2	)	(14	)
Provision for credit losses	1			1			(2		)	2			2			N/M		N/M
Noninterest expense (ex. amortization of intangible assets)	660			702			688			685			692			(6	)	(5	)
Amortization of intangible assets	9			13			13			12			13			(31	)	(31	)
Total noninterest expense	669			715			701			697			705			(6	)	(5	)
Income before taxes	$	269		$	247		$	316		$	319		$	381		9	%	(29	)%
Pre-tax operating margin	29		%	26		%	31		%	31		%	35		%
Adjusted pre-tax operating margin – Non-GAAP (c)	32		%	29		%	35		%	35		%	39		%
Total revenue by line of business:
Asset Management	$	637		$	660		$	704		$	702		$	770		(3	)%	(17	)%
Wealth Management	302			303			311			316			318			—		(5	)
Total revenue by line of business	$	939		$	963		$	1,015		$	1,018		$	1,088		(2	)%	(14	)%
Average loans	$	16,403		$	16,485		$	16,763		$	16,974		$	16,876		—	%	(3	)%
Average assets	$	31,857		$	31,043		$	31,283		$	31,504		$	31,963		3	%	—	%
Average deposits	$	15,815		$	14,893		$	14,634		$	14,252		$	13,363		6	%	18	%
(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 fees, treasury services fees, foreign exchange and other trading revenue and investment and other income.
(b)    On a constant currency basis, investment management and performance fees decreased 9% (Non-GAAP) compared with 1Q18. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 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 16 for the reconciliation of this Non-GAAP measure.
N/M - Not meaningful.

11

THE BANK OF NEW YORK MELLON CORPORATION
AUM BY PRODUCT, AUM FLOWS AND WEALTH MANAGEMENT CLIENT ASSETS
																1Q19 vs.
(dollars in billions)	1Q19			4Q18			3Q18			2Q18			1Q18			4Q18		1Q18
AUM by product type (a)(b)
Equity	$	149		$	135		$	167		$	160		$	161		10	%	(7	)%
Fixed income	208			200			202			197			206			4		1
Index	333			301			352			334			333			11		—
Liability-driven investments	709			659			652			663			700			8		1
Multi-asset and alternative investments	178			167			184			181			185			7		(4	)
Cash	264			260			271			270			283			2		(7	)
Total AUM by product type	$	1,841		$	1,722		$	1,828		$	1,805		$	1,868		7	%	(1	)%
Changes in AUM(a)(b)
Beginning balance of AUM	$	1,722		$	1,828		$	1,805		$	1,868		$	1,893
Net inflows (outflows):
Long-term strategies:
Equity	(4		)	(8		)	(2		)	(3		)	—
Fixed income	3			(1		)	2			(4		)	7
Liability-driven investments	5			14			16			2			13
Multi-asset and alternative investments	(4		)	(2		)	2			(3		)	(3		)
Total long-term active strategies inflows (outflows)	—			3			18			(8		)	17
Index	(2		)	(11		)	(3		)	(7		)	(13		)
Total long-term strategies (outflows) inflows	(2		)	(8		)	15			(15		)	4
Short-term strategies:
Cash	2			(10		)	—			(11		)	(14		)
Total net inflows (outflows)	—			(18		)	15			(26		)	(10		)
Net market impact	103			(69		)	18			17			(14		)
Net currency impact	16			(19		)	(10		)	(53		)	29
Divestiture/Other	—			—			—			(1		)	(30		)
Ending balance of AUM	$	1,841		$	1,722		$	1,828		$	1,805		$	1,868		7	%	(1	)%
Wealth Management client assets (a)(c)	$	253		$	239		$	261		$	254		$	255		6	%	(1	)%
(a)    March 31, 2019 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. The 1Q18 amount was revised to include additional AUC/A.

12

THE BANK OF NEW YORK MELLON CORPORATION
OTHER SEGMENT
(in millions)	1Q19			4Q18			3Q18			2Q18			1Q18
Fee revenue	$	29		$	29		$	7		$	40		$	57
Net securities gains (losses)	1			—			—			1			(49		)
Total fee and other revenue	30			29			7			41			8
Net interest (expense)	(30		)	(15		)	(13		)	(35		)	(1		)
Total revenue (loss)	—			14			(6		)	6			7
Provision for credit losses	(2		)	(7		)	(2		)	(6		)	—
Noninterest expense	61			160			6			81			87
(Loss) before taxes	$	(59	)	$	(139	)	$	(10	)	$	(69	)	$	(80	)
Average loans and leases	$	1,784		$	1,809		$	2,000		$	2,090		$	2,530
Average assets	$	48,417		$	44,964		$	54,782		$	50,437		$	48,117

13

THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SECURITIES PORTFOLIO
(dollars in millions)	Dec. 31, 2018			1Q19 change in unrealized gain (loss)			March 31, 2019					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	$	50,214		$	428		$	51,331	$	50,872		99	%	$	(459	)		100	%	—	%	—	%	—	%	—	%
U.S. Treasury	24,792			55			19,615		19,545			100		(70		)		100		—		—		—		—
Sovereign debt/sovereign guaranteed	11,577			26			12,704		12,811			101		107				76		5		18		1		—
Agency commercial MBS	10,947			39			10,845		10,800			100		(45		)		100		—		—		—		—
U.S. government agencies	3,157			13			3,559		3,556			100		(3		)		100		—		—		—		—
Supranational	3,006			14			3,532		3,541			100		9				100		—		—		—		—
CLOs	3,364			21			3,398		3,373			99		(25		)		98		—		—		1		1
Foreign covered bonds	2,959			13			3,051		3,053			100		2				100		—		—		—		—
State and political subdivisions	2,264			21			2,166		2,183			101		17				78		21		—		—		1
Other asset-backed securities	1,773			1			2,039		2,037			100		(2		)		99		—		1		—		—
Non-agency commercial MBS	1,470			16			1,481		1,476			100		(5		)		97		3		—		—		—
Non-agency RMBS (c)	1,427			(7		)	1,129		1,354			120		225				11		12		6		46		25
Corporate bonds	1,054			23			900		903			100		3				14		68		18		—		—
Other	1,238			—			1,474		1,476			100		2				95		—		—		—		5
Total investment securities	$	119,242	(d)	$	663		$	117,224	$	116,980	(d)	100	%	$	(244	)	(d)(e)	95	%	2	%	2	%	1	%	—	%
(a)    Amortized cost reflects historical impairments.
(b)    Represents ratings by S&P, or the equivalent.
(c)    Includes RMBS that were included in the former Grantor Trust of $832 million at Dec. 31, 2018 and $791 million at March 31, 2019.
(d)    Includes net unrealized gains on derivatives hedging securities available-for-sale of $131 million at Dec. 31, 2018 and net unrealized losses of $252 million at March 31, 2019.
(e)    Includes unrealized gains of $28 million at March 31, 2019 related to available-for-sale securities, net of hedges.

14

THE BANK OF NEW YORK MELLON CORPORATION
ALLOWANCE FOR CREDIT LOSSES AND NONPERFORMING ASSETS
	2019				2018
(dollars in millions)	March 31				Dec. 31			Sept. 30			June 30			March 31
Allowance for credit losses - beginning of period:
Allowance for loan losses	$	146			$	140		$	145		$	156		$	159
Allowance for lending-related commitments	106				111			109			100			102
Allowance for credit losses - beginning of period	$	252			$	251		$	254		$	256		$	261
Net (charge-offs) recoveries :
Charge-offs	(11		)		—			(1		)	—			—
Recoveries	—				1			1			1			—
Total net (charge-offs) recoveries	(11		)		1			—			1			—
Provision for credit losses	7				—			(3		)	(3		)	(5		)
Allowance for credit losses - end of period	$	248			$	252		$	251		$	254		$	256
Allowance for credit losses - end of period:
Allowance for loan losses	$	146			$	146		$	140		$	145		$	156
Allowance for lending-related commitments	102				106			111			109			100
Allowance for credit losses - end of period	$	248			$	252		$	251		$	254		$	256
Allowance for loan losses as a percentage of total loans	0.27		%		0.26		%	0.26		%	0.25		%	0.26		%
Nonperforming assets	$	174		(a)	$	79		$	81		$	82		$	85
(a) Includes nonperforming loans to a California utility company that filed for bankruptcy.

15

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 we believe 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)	1Q19			4Q18			3Q18			2Q18			1Q18
Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP	$	910		$	832		$	1,075		$	1,055		$	1,135
Add: Amortization of intangible assets	29			35			48			48			49
Less: Tax impact of amortization of intangible assets	7			8			11			11			12
Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets – Non-GAAP	$	932		$	859		$	1,112		$	1,092		$	1,172
Average common shareholders’ equity	$	37,086		$	37,886		$	38,036		$	37,750		$	37,593
Less: Average goodwill	17,376			17,358			17,391			17,505			17,581
Average intangible assets	3,209			3,239			3,283			3,341			3,397
Add: Deferred tax liability – tax deductible goodwill	1,083			1,072			1,066			1,054			1,042
Deferred tax liability – intangible assets	690			692			699			709			716
Average tangible common shareholders’ equity – Non-GAAP	$	18,274		$	19,053		$	19,127		$	18,667		$	18,373
Return on common equity – GAAP	10.0		%	8.7		%	11.2		%	11.2		%	12.2		%
Return on tangible common equity – Non-GAAP	20.7		%	17.9		%	23.1		%	23.5		%	25.9		%

16

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	2019			2018
(dollars in millions, except common shares)	March 31			Dec. 31			Sept. 30			June 30			March 31
BNY Mellon shareholders’ equity at period end – GAAP	$	41,225		$	40,638		$	41,560		$	41,505		$	41,728
Less: Preferred stock	3,542			3,542			3,542			3,542			3,542
BNY Mellon common shareholders’ equity at period end – GAAP	37,683			37,096			38,018			37,963			38,186
Less: Goodwill	17,367			17,350			17,390			17,418			17,596
Intangible assets	3,193			3,220			3,258			3,308			3,370
Add: Deferred tax liability – tax deductible goodwill	1,083			1,072			1,066			1,054			1,042
Deferred tax liability – intangible assets	690			692			699			709			716
BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP	$	18,896		$	18,290		$	19,135		$	19,000		$	18,978
Period-end common shares outstanding (in thousands)	957,517			960,426			988,777			999,945			1,010,676
Book value per common share – GAAP	$	39.36		$	38.63		$	38.45		$	37.97		$	37.78
Tangible book value per common share – Non-GAAP	$	19.74		$	19.04		$	19.35		$	19.00		$	18.78
Net interest margin reconciliation
(dollars in millions)	1Q19			4Q18			3Q18			2Q18			1Q18
Net interest revenue – GAAP	$	841		$	885		$	891		$	916		$	919
Add: Tax equivalent adjustment	4			4			5			5			6
Net interest revenue (FTE) – Non-GAAP	$	845		$	889		$	896		$	921		$	925
Average interest-earning assets	$	282,185		$	285,706		$	279,218		$	292,086		$	302,069
Net interest margin – GAAP (a)	1.20		%	1.24		%	1.27		%	1.26		%	1.22		%
Net interest margin (FTE) – Non-GAAP (a)	1.20		%	1.24		%	1.28		%	1.26		%	1.23		%
(a)    Net interest margin is annualized.

17

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)	1Q19			4Q18			3Q18			2Q18			1Q18
Income before income taxes – GAAP	$	269		$	247		$	316		$	319		$	381
Total revenue – GAAP	$	939		$	963		$	1,015		$	1,018		$	1,088
Less: Distribution and servicing expense	91			95			99			103			110
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP	$	848		$	868		$	916		$	915		$	978
Pre-tax operating margin – GAAP (a)	29		%	26		%	31		%	31		%	35		%
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a)	32		%	29		%	35		%	35		%	39		%
(a)    Income before income taxes divided by total revenue.
Constant currency reconciliations							1Q19 vs.
(dollars in millions)	1Q19			1Q18			1Q18
Consolidated:
Investment management and performance fees	$	841		$	950		(11		)%
Impact of changes in foreign currency exchange rates	—			(22		)
Adjusted investment management and performance fees – Non-GAAP	$	841		$	928		(9		)%
Investment Management business:
Investment management and performance fees	$	837		$	946		(12		)%
Impact of changes in foreign currency exchange rates	—			(22		)
Adjusted investment management and performance fees – Non-GAAP	$	837		$	924		(9		)%

18