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

The Bank of New York Mellon Corporation

Financial Supplement

Second 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)																2Q19 vs.										YTD19 vs.
	2Q19			1Q19			4Q18			3Q18			2Q18			1Q19		2Q18		YTD19			YTD18			YTD18
Selected income statement data
Fee revenue	$	3,105		$	3,031		$	3,146		$	3,168		$	3,209		2	%	(3	)%	$	6,136		$	6,528		(6	)%
Net securities gains (losses)	7			1			—			—			1			N/M		N/M		8			(48		)	N/M
Fee and other revenue	3,112			3,032			3,146			3,168			3,210			3		(3	)	6,144			6,480			(5	)
Income (loss) from consolidated investment management funds	10			26			(24		)	10			12			N/M		N/M		36			1			N/M
Net interest revenue	802			841			885			891			916			(5	)	(12	)	1,643			1,835			(10	)
Total revenue	3,924			3,899			4,007			4,069			4,138			1		(5	)	7,823			8,316			(6	)
Provision for credit losses	(8		)	7			—			(3		)	(3		)	N/M		N/M		(1		)	(8		)	N/M
Noninterest expense	2,647			2,699			2,987			2,738			2,747			(2	)	(4	)	5,346			5,486			(3	)
Income before income taxes	1,285			1,193			1,020			1,334			1,394			8		(8	)	2,478			2,838			(13	)
Provision for income taxes	264			237			150			220			286			11		(8	)	501			568			N/M
Net income	$	1,021		$	956		$	870		$	1,114		$	1,108		7	%	(8	)%	$	1,977		$	2,270		(13	)%
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	969		$	910		$	832		$	1,075		$	1,055		6	%	(8	)%	$	1,879		$	2,190		(14	)%
Diluted earnings per common share	$	1.01		$	0.94		$	0.84		$	1.06		$	1.03		7	%	(2	)%	$	1.95		$	2.14		(9	)%
Average common shares and equivalents outstanding - diluted (in thousands)	953,928			965,960			988,650			1,003,665			1,014,357			(1	)%	(6	)%	959,957			1,018,020			(6	)%
Financial ratios(Returns are annualized)
Pre-tax operating margin	33		%	31		%	25		%	33		%	34		%					32		%	34		%
Return on common equity (a)	10.4		%	10.0		%	8.7		%	11.2		%	11.2		%					10.2		%	11.7		%
Return on tangible common equity – Non-GAAP (a)	21.2		%	20.7		%	17.9		%	23.1		%	23.5		%					20.9		%	24.6		%
Percent of non-U.S. total revenue	36		%	36		%	36		%	37		%	37		%					36		%	37		%
Period end
Assets under custody and/or administration (“AUC/A”) (in trillions) (b)	$	35.5		$	34.5		$	33.1		$	34.5		$	33.6		3	%	6	%
Assets under management (“AUM”) (in trillions)	$	1.84		$	1.84		$	1.72		$	1.83		$	1.81		—	%	2	%
Full-time employees	49,100			49,800			51,300			52,000			52,000			(1	)%	(6	)%
Book value per common share (a)	$	40.30		$	39.36		$	38.63		$	38.45		$	37.97
Tangible book value per common share – Non-GAAP (a)	$	20.45		$	19.74		$	19.04		$	19.35		$	19.00
Cash dividends per common share	$	0.28		$	0.28		$	0.28		$	0.28		$	0.24
Common dividend payout ratio	28		%	30		%	33		%	26		%	23		%
Closing stock price per common share	$	44.15		$	50.43		$	47.07		$	50.99		$	53.93
Market capitalization	$	41,619		$	48,288		$	45,207		$	50,418		$	53,927
Common shares outstanding (in thousands)	942,662			957,517			960,426			988,777			999,945
Capital ratios at period end(c)
Common Equity Tier 1 ("CET1") ratio	11.2		%	11.1		%	10.7		%	11.2		%	11.0		%
Tier 1 capital ratio	13.3		%	13.2		%	12.8		%	13.3		%	13.1		%
Total capital ratio	14.0		%	14.0		%	13.6		%	14.1		%	13.8		%
Supplementary leverage ratio ("SLR")	6.3		%	6.3		%	6.0		%	6.4		%	6.1		%
(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 $1.4 trillion at June 30, 2019, $1.3 trillion at March 31, 2019, $1.2 trillion at Dec. 31, 2018 and $1.4 trillion at Sept. 30, 2018 and June 30, 2018.
(c)    Regulatory capital ratios for June 30, 2019 are preliminary. All risk-based capital ratios are presented using Advanced Approaches.
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)																2Q19 vs.										YTD19 vs.
	2Q19			1Q19			4Q18			3Q18			2Q18			1Q19		2Q18		YTD19			YTD18			YTD18
Revenue
Investment services fees:
Asset servicing fees	$	1,141		$	1,122		$	1,126		$	1,157		$	1,157		2	%	(1	)%	$	2,263		$	2,325		(3	)%
Clearing services fees (a)	410			398			398			393			401			3		2		808			825			(2	)
Issuer services fees	291			251			286			287			266			16		9		542			526			3
Treasury services fees	140			132			139			137			140			6		—		272			278			(2	)
Total investment services fees (a)	1,982			1,903			1,949			1,974			1,964			4		1		3,885			3,954			(2	)
Investment management and performance fees (a)	833			841			884			912			901			(1	)	(8	)	1,674			1,851			(10	)
Foreign exchange and other trading revenue	166			170			181			155			187			(2	)	(11	)	336			396			(15	)
Financing-related fees	50			51			50			52			53			(2	)	(6	)	101			105			(4	)
Distribution and servicing	31			31			35			34			34			—		(9	)	62			70			(11	)
Investment and other income	43			35			47			41			70			N/M		N/M		78			152			N/M
Total fee revenue	3,105			3,031			3,146			3,168			3,209			2		(3	)	6,136			6,528			(6	)
Net securities gains (losses)	7			1			—			—			1			N/M		N/M		8			(48		)	N/M
Total fee and other revenue	3,112			3,032			3,146			3,168			3,210			3		(3	)	6,144			6,480			(5	)
Income (loss) from consolidated investment management funds	10			26			(24		)	10			12			N/M		N/M		36			1			N/M
Net interest revenue	802			841			885			891			916			(5	)	(12	)	1,643			1,835			(10	)
Total revenue	3,924			3,899			4,007			4,069			4,138			1		(5	)	7,823			8,316			(6	)
Provision for credit losses	(8		)	7			—			(3		)	(3		)	N/M		N/M		(1		)	(8		)	N/M
Noninterest expense
Staff	1,421			1,524			1,602			1,478			1,489			(7	)	(5	)	2,945			3,065			(4	)
Professional, legal and other purchased services	337			325			383			332			328			4		3		662			619			7
Software and equipment	304			283			300			262			266			7		14		587			500			17
Net occupancy	138			137			196			139			156			1		(12	)	275			295			(7	)
Sub-custodian and clearing	115			105			115			106			110			10		5		220			229			(4	)
Distribution and servicing	94			91			95			99			106			3		(11	)	185			212			(13	)
Business development	56			45			64			51			62			24		(10	)	101			113			(11	)
Bank assessment charges	31			31			22			49			47			—		(34	)	62			99			(37	)
Amortization of intangible assets	30			29			35			48			48			3		(38	)	59			97			(39	)
Other	121			129			175			174			135			(6	)	(10	)	250			257			(3	)
Total noninterest expense	2,647			2,699			2,987			2,738			2,747			(2	)	(4	)	5,346			5,486			(3	)
Income before income taxes	1,285			1,193			1,020			1,334			1,394			8		(8	)	2,478			2,838			(13	)
Provision for income taxes	264			237			150			220			286			11		(8	)	501			568			N/M
Net income	1,021			956			870			1,114			1,108			7		(8	)	1,977			2,270			(13	)
Net (income) loss attributable to noncontrolling interests	(4		)	(10		)	11			(3		)	(5		)	N/M		N/M		(14		)	4			N/M
Preferred stock dividends	(48		)	(36		)	(49		)	(36		)	(48		)	N/M		N/M		(84		)	(84		)	—
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	969		$	910		$	832		$	1,075		$	1,055		6	%	(8	)%	$	1,879		$	2,190		(14	)%
Average common shares and equivalents outstanding: Basic	951,281			962,397			984,343			999,808			1,010,179			(1	)%	(6	)%	956,887			1,013,507			(6	)%
Diluted	953,928			965,960			988,650			1,003,665			1,014,357			(1	)%	(6	)%	959,957			1,018,020			(6	)%
Earnings per common share: Basic	$	1.01		$	0.94		$	0.84		$	1.07		$	1.04		7	%	(3	)%	$	1.95		$	2.15		(9	)%
Diluted	$	1.01		$	0.94		$	0.84		$	1.06		$	1.03		7	%	(2	)%	$	1.95		$	2.14		(9	)%
(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)	June 30			March 31			Dec. 31			Sept. 30			June 30
Assets
Cash and due from banks	$	5,556		$	5,980		$	5,864		$	5,047		$	5,361
Interest-bearing deposits with the Federal Reserve and other central banks	69,700			60,699			67,988			74,725			75,116
Interest-bearing deposits with banks	15,491			13,681			14,148			14,519			16,134
Federal funds sold and securities purchased under resale agreements	61,201			40,158			46,795			28,722			26,494
Securities	120,142			117,504			119,791			118,641			119,081
Trading assets	8,629			6,868			7,035			7,804			7,035
Loans	52,396			53,487			56,564			53,987			57,776
Allowance for loan losses	(146		)	(146		)	(146		)	(140		)	(145		)
Net loans	52,250			53,341			56,418			53,847			57,631
Premises and equipment (a)	2,970			3,010			1,832			1,832			1,752
Accrued interest receivable	658			651			671			640			663
Goodwill	17,337			17,367			17,350			17,390			17,418
Intangible assets	3,160			3,193			3,220			3,258			3,308
Other assets	23,737			23,228			21,298			22,846			22,507
Subtotal assets of operations	380,831			345,680			362,410			349,271			352,500
Assets of consolidated investment management funds, at fair value	337			452			463			499			428
Total assets	$	381,168		$	346,132		$	362,873		$	349,770		$	352,928
Liabilities
Deposits	$	252,877		$	222,382		$	238,778		$	231,590		$	230,560
Federal funds purchased and securities sold under repurchase agreements	11,757			11,761			14,243			10,158			13,200
Trading liabilities	3,768			3,892			3,479			3,536			3,580
Payables to customers and broker-dealers	18,946			19,310			19,731			18,683			19,123
Commercial paper	8,894			2,773			1,939			735			2,508
Other borrowed funds	1,921			3,932			3,227			2,934			3,053
Accrued taxes and other expenses	5,045			4,686			5,669			5,601			5,452
Other liabilities (a)	7,916			8,050			5,774			6,552			5,443
Long-term debt	28,203			27,874			29,163			28,113			28,260
Subtotal liabilities of operations	339,327			304,660			322,003			307,902			311,179
Liabilities of consolidated investment management funds, at fair value	6			3			2			7			3
Total liabilities	339,333			304,663			322,005			307,909			311,182
Temporary equity
Redeemable noncontrolling interests	136			122			129			211			189
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	27,406			27,349			27,118			27,034			26,981
Retained earnings	30,081			29,382			28,652			28,098			27,306
Accumulated other comprehensive loss, net of tax	(2,688		)	(2,990		)	(3,171		)	(2,983		)	(2,795		)
Less: Treasury stock, at cost	(16,822		)	(16,072		)	(15,517		)	(14,145		)	(13,543		)
Total The Bank of New York Mellon Corporation shareholders’ equity	41,533			41,225			40,638			41,560			41,505
Nonredeemable noncontrolling interests of consolidated investment management funds	166			122			101			90			52
Total permanent equity	41,699			41,347			40,739			41,650			41,557
Total liabilities, temporary equity and permanent equity	$	381,168		$	346,132		$	362,873		$	349,770		$	352,928
(a)    In 1Q19, we adopted new accounting guidance included in Accounting Standards Update 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
																2Q19 vs.										YTD19 vs.
(dollars in millions)	2Q19			1Q19				4Q18			3Q18			2Q18		1Q19		2Q18		YTD19			YTD18			YTD18
Investment services fees:
Asset servicing fees	$	1,097		$	1,074			$	1,079		$	1,099		$	1,097	2	%	—	%	$	2,171		$	2,210		(2	)%
Securities lending revenue	44			48				47			58			60		(8	)	(27	)	92			115			(20	)
Clearing services fees (a)	410			398				398			393			401		3		2		808			825			(2	)
Issuer services fees	291			251				286			287			266		16		9		542			526			3
Treasury services fees	140			132				139			137			140		6		—		272			278			(2	)
Total investment services fees (a)	1,982			1,903				1,949			1,974			1,964		4		1		3,885			3,954			(2	)
Investment management and performance fees (a)(b)(c)	833			841				884			912			901		(1	)	(8	)	1,674			1,851			(10	)
Foreign exchange and other trading revenue:
Foreign exchange	150			160				159			150			171		(6	)	(12	)	310			354			(12	)
Other trading revenue	16			10				22			5			16		N/M		N/M		26			42			N/M
Total foreign exchange and other trading revenue	166			170				181			155			187		(2	)	(11	)	336			396			(15	)
Financing-related fees	50			51				50			52			53		(2	)	(6	)	101			105			(4	)
Distribution and servicing	31			31				35			34			34		—		(9	)	62			70			(11	)
Investment and other income:
Corporate/bank-owned life insurance	32			30				42			36			31		N/M		N/M		62			67			N/M
Expense reimbursements from joint venture	19			19				19			17			19		N/M		N/M		38			35			N/M
Asset-related gains	1			1				2			7			15		N/M		N/M		2			61			N/M
Seed capital gains (losses) (b)	8			2			(d)	(8		)	8			3		N/M		N/M		10			3			N/M
Other (loss) income	(17		)	(17		)	(d)	(8		)	(27		)	2		N/M		N/M		(34		)	(14		)	N/M
Total investment and other income (b)	43			35				47			41			70		N/M		N/M		78			152			N/M
Total fee revenue	3,105			3,031				3,146			3,168			3,209		2		(3	)	6,136			6,528			(6	)
Net securities gains (losses)	7			1				—			—			1		N/M		N/M		8			(48		)	N/M
Total fee and other revenue	$	3,112		$	3,032			$	3,146		$	3,168		$	3,210	3	%	(3	)%	$	6,144		$	6,480		(5	)%
(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 6% compared with 2Q18. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.
(d)    The 1Q19 amounts were adjusted to correct the classification of certain revenue between seed capital and other income.
N/M - Not meaningful.

6

THE BANK OF NEW YORK MELLON CORPORATION
AVERAGE BALANCES AND INTEREST RATES
	2Q19				1Q19				4Q18				3Q18				2Q18
	Average balance		Average rate		Average balance		Average rate		Average balance		Average rate		Average balance		Average rate		Average balance		Average rate
(dollars in millions)
Assets
Interest-earning assets:
Interest-bearing deposits with the Federal Reserve and other central banks	$	61,756	0.72	%	$	63,583	0.87	%	$	63,916	0.89	%	$	61,216	0.80	%	$	69,676	0.77	%
Interest-bearing deposits with banks (primarily foreign banks)	13,666		1.87		13,857		1.85		14,666		1.67		14,691		1.58		15,748		1.41
Federal funds sold and securities purchased under resale agreements (a)	38,038		5.99		28,968		6.63		28,843		5.98		26,738		4.18		28,051		3.29
Margin loans	10,920		4.36		12,670		4.34		13,369		4.08		13,738		3.74		14,838		3.46
Non-margin loans:
Domestic offices	29,492		3.86		28,177		3.85		29,576		3.73		28,628		3.59		29,970		3.44
Foreign offices	9,961		3.29		10,511		3.32		10,889		3.10		11,441		2.98		12,258		2.87
Total non-margin loans	39,453		3.71		38,688		3.70		40,465		3.56		40,069		3.42		42,228		3.27
Securities:
U.S. government obligations	18,870		2.19		23,597		2.22		24,531		2.14		24,423		2.09		23,199		2.02
U.S. government agency obligations	66,445		2.58		64,867		2.63		64,496		2.54		64,612		2.40		63,022		2.37
State and political subdivisions (b)	1,735		2.89		2,206		2.71		2,263		2.63		2,453		2.77		2,677		2.75
Other securities (b)	30,770		2.04		28,647		2.13		27,614		1.91		27,017		1.98		28,863		1.75
Trading securities (b)	5,764		2.72		5,102		2.91		5,543		2.77		4,261		3.05		3,784		3.10
Total securities	123,584		2.40		124,419		2.45		124,447		2.33		122,766		2.28		121,545		2.19
Total interest-earning assets	$	287,417	2.74	%	$	282,185	2.75	%	$	285,706	2.60	%	$	279,218	2.33	%	$	292,086	2.14	%
Noninterest-earning assets	54,967				53,980				52,885				53,123				54,242
Total assets	$	342,384			$	336,165			$	338,591			$	332,341			$	346,328
Liabilities and total equity
Interest-bearing liabilities:
Interest-bearing deposits:
Domestic offices	$	74,180	1.36	%	$	70,562	1.29	%	$	72,929	1.19	%	$	57,942	0.97	%	$	54,200	0.78	%
Foreign offices	93,365		0.78		89,317		0.76		88,734		0.59		90,694		0.42		98,599		0.28
Total interest-bearing deposits	167,545		1.04		159,879		0.99		161,663		0.86		148,636		0.63		152,799		0.45
Federal funds purchased and securities sold under repurchase agreements (a)	11,809		12.64		11,922		11.26		10,980		10.95		14,199		5.33		18,146		3.48
Trading liabilities	1,735		2.47		1,305		2.25		1,330		1.86		1,150		2.32		1,198		2.43
Other borrowed funds	2,455		3.36		3,305		2.87		2,903		2.44		2,747		2.33		2,399		2.40
Commercial paper	2,957		2.43		1,377		2.44		353		2.41		3,102		2.10		3,869		2.13
Payables to customers and broker-dealers	15,666		1.76		16,108		1.76		15,727		1.61		16,252		1.23		16,349		1.10
Long-term debt	27,681		3.45		28,254		3.52		28,201		3.29		28,074		3.17		28,349		3.06
Total interest-bearing liabilities	$	229,848	2.03	%	$	222,150	1.96	%	$	221,157	1.75	%	$	214,160	1.37	%	$	223,109	1.14	%
Total noninterest-bearing deposits	52,956				54,583				58,972				60,677				64,768
Other noninterest-bearing liabilities	18,362				18,628				16,754				15,660				16,857
Total The Bank of New York Mellon Corporation shareholders’ equity	41,029				40,628				41,428				41,578				41,292
Noncontrolling interests	189				176				280				266				302
Total liabilities and shareholders’ equity	$	342,384			$	336,165			$	338,591			$	332,341			$	346,328
Net interest margin			1.12	%			1.20	%			1.24	%			1.27	%			1.26	%
Net interest margin (FTE) – Non-GAAP (c)			1.12	%			1.20	%			1.24	%			1.28	%			1.26	%
(a)    Includes the average impact of offsetting under enforceable netting agreements of approximately $51 billion for 2Q19, $44 billion for 1Q19, $43 billion for 4Q18, $26 billion for 3Q18 and $18 billion for 2Q18. On a Non-GAAP basis, excluding the impact of offsetting, the yield on federal funds sold and securities purchased under resale agreements would have been 2.57% for 2Q19, 2.63% for 1Q19, 2.41% for 4Q18, 2.12% for 3Q18 and 2.01% for 2Q18.  On a Non-GAAP basis, excluding the impact of offsetting, the rate on federal funds purchased and securities sold under repurchase agreements would have been 2.39% for 2Q19, 2.40% for 1Q19, 2.24% for 4Q18, 1.88% for 3Q18 and 1.75% for 2Q18. We believe providing the rates excluding the impact of netting is useful to investors as it is more reflective of the actual rates earned and paid.
(b)    Average rates were calculated on an FTE basis, at tax rates of approximately 21%, and annualized.
(c)    See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.

7

THE BANK OF NEW YORK MELLON CORPORATION
CAPITAL AND LIQUIDITY
	2019						2018
(dollars in millions)	June 30			March 31			Dec. 31			Sept. 30			June 30
Consolidated regulatory capital ratios (a)
Standardized Approach:
CET1 capital	$	18,535		$	18,156		$	17,567		$	18,517		$	18,386
Tier 1 capital	22,015			21,639			21,044			22,002			21,877
Total capital	23,500			23,136			22,536			23,497			23,375
Risk-weighted assets	149,971			151,101			149,618			149,348			154,612
CET1 ratio	12.4		%	12.0		%	11.7		%	12.4		%	11.9		%
Tier 1 capital ratio	14.7			14.3			14.1			14.7			14.1
Total capital ratio	15.7			15.3			15.1			15.7			15.1
Advanced Approaches:
CET1 capital	$	18,535		$	18,156		$	17,567		$	18,517		$	18,386
Tier 1 capital	22,015			21,639			21,044			22,002			21,877
Total capital	23,305			22,941			22,349			23,299			23,174
Risk-weighted assets	166,054			163,618			164,671			165,137			167,580
CET1 ratio	11.2		%	11.1		%	10.7		%	11.2		%	11.0		%
Tier 1 capital ratio	13.3			13.2			12.8			13.3			13.1
Total capital ratio	14.0			14.0			13.6			14.1			13.8
Tier 1 leverage ratio	6.8		%	6.8		%	6.6		%	7.0		%	6.7		%
SLR:
Leverage exposure	$	350,517		$	344,829		$	347,943		$	341,566		$	355,773
SLR	6.3		%	6.3		%	6.0		%	6.4		%	6.1		%
Average liquidity coverage ratio	117		%	118		%	118		%	121		%	118		%
(a)    Regulatory capital ratios for June 30, 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
																2Q19 vs.										YTD19 vs.
(dollars in millions)	2Q19			1Q19			4Q18			3Q18			2Q18			1Q19		2Q18		YTD19			YTD18			YTD18
Revenue:
Investment services fees:
Asset servicing fees (ex. securities lending revenue) (a)	$	1,080		$	1,059		$	1,063		$	1,084		$	1,080		2	%	—	%	$	2,139		$	2,175		(2	)%
Securities lending revenue	40			44			43			52			55			(9	)	(27	)	84			103			(18	)
Clearing services fees (b)	411			398			398			393			400			3		3		809			824			(2	)
Issuer services fees	291			251			286			288			265			16		10		542			525			3
Treasury services fees	140			132			139			136			140			6		—		272			278			(2	)
Total investment services fees (b)	1,962			1,884			1,929			1,953			1,940			4		1		3,846			3,905			(2	)
Foreign exchange and other trading revenue	153			157			163			161			172			(3	)	(11	)	310			341			(9	)
Other (b)(c)	112			113			121			116			121			(1	)	(7	)	225			237			(5	)
Total fee and other revenue	2,227			2,154			2,213			2,230			2,233			3		—		4,381			4,483			(2	)
Net interest revenue	775			796			827			827			874			(3	)	(11	)	1,571			1,718			(9	)
Total revenue	3,002			2,950			3,040			3,057			3,107			2		(3	)	5,952			6,201			(4	)
Provision for credit losses	(4		)	8			6			1			1			N/M		N/M		4			(6		)	N/M
Noninterest expense (ex. amortization of intangible assets)	1,934			1,949			2,090			1,995			1,931			(1	)	—		3,883			3,844			1
Amortization of intangible assets	20			20			22			35			36			—		(44	)	40			72			(44	)
Total noninterest expense	1,954			1,969			2,112			2,030			1,967			(1	)	(1	)	3,923			3,916			—
Income before taxes	$	1,052		$	973		$	922		$	1,026		$	1,139		8	%	(8	)%	$	2,025		$	2,291		(12	)%
Pre-tax operating margin	35		%	33		%	30		%	34		%	37		%					34		%	37		%
Total revenue by line of business:
Asset Servicing	$	1,391		$	1,407		$	1,435		$	1,458		$	1,520		(1	)%	(8	)%	$	2,798		$	3,039		(8	)%
Pershing	564			554			558			558			558			2		1		1,118			1,139			(2	)
Issuer Services	446			396			441			453			431			13		3		842			849			(1	)
Treasury Services	317			317			328			324			329			—		(4	)	634			650			(2	)
Clearance and Collateral Management	284			276			278			264			269			3		6		560			524			7
Total revenue by line of business	$	3,002		$	2,950		$	3,040		$	3,057		$	3,107		2	%	(3	)%	$	5,952		$	6,201		(4	)%
(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
											2Q19 vs.								YTD19 vs.
(dollars in millions unless otherwise noted)	2Q19		1Q19		4Q18		3Q18		2Q18		1Q19		2Q18		YTD19		YTD18		YTD18
Average loans	$	32,287	$	33,171	$	35,540	$	35,044	$	38,002	(3	)%	(15	)%	$	32,726	$	38,598	(15	)%
Average assets	$	264,639	$	255,891	$	262,584	$	246,276	$	264,387	3	%	—		$	260,290	$	271,203	(4	)%
Average deposits	$	201,146	$	195,082	$	203,416	$	192,741	$	203,064	3	%	(1	)%	$	198,131	$	208,567	(5	)%
AUC/A at period end (in trillions) (a)(b)	$	35.5	$	34.5	$	33.1	$	34.5	$	33.6	3	%	6	%	$	35.5	$	33.6	6	%
Market value of securities on loan at period end (in billions) (c)	$	369	$	377	$	373	$	415	$	432	(2	)%	(15	)%	$	369	$	432	(15	)%
Pershing
Average active clearing accounts (U.S. platform) (in thousands)	6,254		6,169		6,125		6,108		6,080		1	%	3	%
Average long-term mutual fund assets (U.S. platform)	$	532,384	$	507,606	$	489,491	$	527,336	$	512,645	5	%	4	%
Average investor margin loans (U.S. platform)	$	9,440	$	10,093	$	10,921	$	10,696	$	10,772	(6	)%	(12	)%
Clearance and Collateral Management
Average tri-party collateral management balances (in billions)	$	3,400	$	3,266	$	3,181	$	2,995	$	2,801	4	%	21	%
(a)    June 30, 2019 information is preliminary.
(b)    Includes the AUC/A of CIBC Mellon of $1.4 trillion at June 30, 2019, $1.3 trillion at March 31, 2019, $1.2 trillion at Dec. 31, 2018 and $1.4 trillion at Sept. 30, 2018 and June 30, 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 $64 billion at June 30, 2019,$62 billion at March 31, 2019, $58 billion at Dec.31, 2018, $69 billion at Sept. 30, 2018 and $70 billion at June 30, 2018.

10

THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT MANAGEMENT BUSINESS
																2Q19 vs.										YTD19 vs.
(dollars in millions)	2Q19			1Q19			4Q18			3Q18			2Q18			1Q19		2Q18		YTD19			YTD18			YTD18
Revenue:
Investment management fees (a)	$	827		$	806		$	826		$	879		$	885		3	%	(7	)%	$	1,633		$	1,783		(8	)%
Performance fees	2			31			54			30			12			N/M		(83	)	33			60			(45	)
Investment management and performance fees (b)	829			837			880			909			897			(1	)	(8	)	1,666			1,843			(10	)
Distribution and servicing	44			45			45			47			48			(2	)	(8	)	89			98			(9	)
Other (a)	(23		)	(18		)	(35		)	(18		)	(4		)	N/M		N/M		(41		)	12			N/M
Total fee and other revenue (a)	850			864			890			938			941			(2	)	(10	)	1,714			1,953			(12	)
Net interest revenue	67			75			73			77			77			(11	)	(13	)	142			153			(7	)
Total revenue	917			939			963			1,015			1,018			(2	)	(10	)	1,856			2,106			(12	)
Provision for credit losses	(2		)	1			1			(2		)	2			N/M		N/M		(1		)	4			N/M
Noninterest expense (ex. amortization of intangible assets)	645			660			702			688			685			(2	)	(6	)	1,305			1,377			(5	)
Amortization of intangible assets	9			9			13			13			12			—		(25	)	18			25			(28	)
Total noninterest expense	654			669			715			701			697			(2	)	(6	)	1,323			1,402			(6	)
Income before taxes	$	265		$	269		$	247		$	316		$	319		(1	)%	(17	)%	$	534		$	700		(24	)%
Pre-tax operating margin	29		%	29		%	26		%	31		%	31		%					29		%	33		%
Adjusted pre-tax operating margin – Non-GAAP (c)	32		%	32		%	29		%	35		%	35		%					32		%	37		%
Total revenue by line of business:
Asset Management	$	618		$	637		$	660		$	704		$	702		(3	)%	(12	)%	$	1,255		$	1,472		(15	)%
Wealth Management	299			302			303			311			316			(1	)	(5	)	601			634			(5	)
Total revenue by line of business	$	917		$	939		$	963		$	1,015		$	1,018		(2	)%	(10	)%	$	1,856		$	2,106		(12	)%
Average loans	$	16,322		$	16,403		$	16,485		$	16,763		$	16,974		—	%	(4	)%	$	16,363		$	16,926		(3	)%
Average assets	$	30,709		$	31,857		$	31,043		$	31,283		$	31,504		(4	)%	(3	)%	$	30,926		$	31,732		(3	)%
Average deposits	$	14,615		$	15,815		$	14,893		$	14,634		$	14,252		(8	)%	3	%	$	15,211		$	13,810		10	%
(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 6% (Non-GAAP) compared with 2Q18. 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
																2Q19 vs.										YTD19 vs.
(dollars in billions)	2Q19			1Q19			4Q18			3Q18			2Q18			1Q19		2Q18		YTD19			YTD18			YTD18
AUM by product type (a)(b)
Equity	$	152		$	149		$	135		$	167		$	160		2	%	(5	)%
Fixed income	209			208			200			202			197			—		6
Index	322			333			301			352			334			(3	)	(4	)
Liability-driven investments	709			709			659			652			663			—		7
Multi-asset and alternative investments	184			178			167			184			181			3		2
Cash	267			264			260			271			270			1		(1	)
Total AUM by product type	$	1,843		$	1,841		$	1,722		$	1,828		$	1,805		—	%	2	%
Changes in AUM(a)(b)
Beginning balance of AUM	$	1,841		$	1,722		$	1,828		$	1,805		$	1,868						$	1,722		$	1,893
Net (outflows) inflows:
Long-term strategies:
Equity	(2		)	(4		)	(8		)	(2		)	(3		)					(6		)	(3		)
Fixed income	(4		)	3			(1		)	2			(4		)					(1		)	3
Liability-driven investments	1			5			14			16			2							6			15
Multi-asset and alternative investments	1			(4		)	(2		)	2			(3		)					(3		)	(6		)
Total long-term active strategies (outflows) inflows	(4		)	—			3			18			(8		)					(4		)	9
Index	(22		)	(2		)	(11		)	(3		)	(7		)					(24		)	(20		)
Total long-term strategies (outflows) inflows	(26		)	(2		)	(8		)	15			(15		)					(28		)	(11		)
Short-term strategies:
Cash	2			2			(10		)	—			(11		)					4			(25		)
Total net (outflows) inflows	(24		)	—			(18		)	15			(26		)					(24		)	(36		)
Net market impact	42			103			(69		)	18			17							145			3
Net currency impact	(16		)	16			(19		)	(10		)	(53		)					—			(24		)
Divestiture/Other	—			—			—			—			(1		)					—			(31		)
Ending balance of AUM	$	1,843		$	1,841		$	1,722		$	1,828		$	1,805		—	%	2	%	$	1,843		$	1,805		2	%
Wealth Management client assets (a)(c)	$	257		$	253		$	239		$	261		$	254		2	%	1	%
(a)    June 30, 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.

12

THE BANK OF NEW YORK MELLON CORPORATION
OTHER SEGMENT
(in millions)	2Q19			1Q19			4Q18			3Q18			2Q18			YTD19			YTD18
Fee revenue	$	34		$	29		$	29		$	7		$	40		$	63		$	97
Net securities gains (losses)	7			1			—			—			1			8			(48		)
Total fee and other revenue	41			30			29			7			41			71			49
Net interest (expense)	(40		)	(30		)	(15		)	(13		)	(35		)	(70		)	(36		)
Total revenue (loss)	1			—			14			(6		)	6			1			13
Provision for credit losses	(2		)	(2		)	(7		)	(2		)	(6		)	(4		)	(6		)
Noninterest expense	39			61			160			6			81			100			168
(Loss) before taxes	$	(36	)	$	(59	)	$	(139	)	$	(10	)	$	(69	)	$	(95	)	$	(149	)
Average loans and leases	$	1,764		$	1,784		$	1,809		$	2,000		$	2,090		$	1,774		$	2,308
Average assets	$	47,036		$	48,417		$	44,964		$	54,782		$	50,437		$	48,076		$	49,284

13

THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SECURITIES PORTFOLIO
(dollars in millions)	March 31, 2019			2Q19 change in unrealized gain (loss)			June 30, 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	$	50,872		$	503		$	52,816	$	52,860		100	%	$	44			100	%	—	%	—	%	—	%	—	%
U.S. Treasury	19,545			82			18,272		18,284			100		12				100		—		—		—		—
Sovereign debt/sovereign guaranteed	12,811			32			13,007		13,146			101		139				76		3		20		1		—
Agency commercial MBS	10,800			56			10,678		10,689			100		11				100		—		—		—		—
Supranational	3,541			13			3,903		3,925			101		22				100		—		—		—		—
U.S. government agencies	3,556			8			3,861		3,866			100		5				100		—		—		—		—
CLOs	3,373			9			3,665		3,649			100		(16		)		98		—		—		1		1
Foreign covered bonds	3,053			12			3,465		3,479			100		14				100		—		—		—		—
Other asset-backed securities	2,037			6			2,466		2,470			100		4				100		—		—		—		—
Non-agency commercial MBS	1,476			30			1,968		1,993			101		25				98		2		—		—		—
Non-agency RMBS (c)	1,354			(1		)	1,090		1,314			121		224				13		12		5		44		26
State and political subdivisions	2,183			10			1,270		1,297			102		27				72		27		—		—		1
Corporate bonds	903			13			889		905			102		16				16		69		15		—		—
Other	1,476			1			1,671		1,674			100		3				89		7		—		—		4
Total investment securities	$	116,980	(d)	$	774		$	119,021	$	119,551	(d)	100	%	$	530		(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 $791 million at March 31, 2019 and $753 million at June 30, 2019.
(d)    Includes net unrealized losses on derivatives hedging securities available-for-sale of $252 million at March 31, 2019 and $737 million at June 30, 2019.
(e)    Includes unrealized gains of $384 million at June 30, 2019 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
	2019								2018
(dollars in millions)	June 30				March 31				Dec. 31			Sept. 30			June 30
Allowance for credit losses - beginning 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 - beginning of period	$	248			$	252			$	251		$	254		$	256
Net (charge-offs) recoveries:
Charge-offs	(1		)		(11		)		—			(1		)	—
Recoveries	2				—				1			1			1
Total net (charge-offs) recoveries	1				(11		)		1			—			1
Provision for credit losses	(8		)		7				—			(3		)	(3		)
Allowance for credit losses - end of period	$	241			$	248			$	252		$	251		$	254
Allowance for credit losses - end of period:
Allowance for loan losses	$	146			$	146			$	146		$	140		$	145
Allowance for lending-related commitments	95				102				106			111			109
Allowance for credit losses - end of period	$	241			$	248			$	252		$	251		$	254
Allowance for loan losses as a percentage of total loans	0.28		%		0.27		%		0.26		%	0.25		%	0.25		%
Nonperforming assets	$	186		(a)	$	174		(a)	$	79		$	81		$	82
(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, which exclude goodwill and intangible assets, net of deferred tax liabilities. BNY Mellon believes that the return on tangible common equity is additional useful information for investors because it presents a measure of those assets that can generate income and the tangible book value per common share is additional useful information because it presents the level of tangible assets in relation to shares of common stock outstanding.
Net interest revenue, on a fully taxable equivalent ("FTE") basis – Non-GAAP and net interest margin (FTE) – Non-GAAP and other FTE measures 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 also included 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)	2Q19			1Q19			4Q18			3Q18			2Q18			YTD19			YTD18
Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP	$	969		$	910		$	832		$	1,075		$	1,055		$	1,879		$	2,190
Add: Amortization of intangible assets	30			29			35			48			48			59			97
Less: Tax impact of amortization of intangible assets	7			7			8			11			11			14			23
Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets – Non-GAAP	$	992		$	932		$	859		$	1,112		$	1,092		$	1,924		$	2,264
Average common shareholders’ equity	$	37,487		$	37,086		$	37,886		$	38,036		$	37,750		$	37,287		$	37,672
Less: Average goodwill	17,343			17,376			17,358			17,391			17,505			17,360			17,543
Average intangible assets	3,178			3,209			3,239			3,283			3,341			3,193			3,369
Add: Deferred tax liability – tax deductible goodwill	1,094			1,083			1,072			1,066			1,054			1,094			1,054
Deferred tax liability – intangible assets	687			690			692			699			709			687			709
Average tangible common shareholders’ equity – Non-GAAP	$	18,747		$	18,274		$	19,053		$	19,127		$	18,667		$	18,515		$	18,523
Return on common equity – GAAP	10.4		%	10.0		%	8.7		%	11.2		%	11.2		%	10.2		%	11.7		%
Return on tangible common equity – Non-GAAP	21.2		%	20.7		%	17.9		%	23.1		%	23.5		%	20.9		%	24.6		%

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)	June 30			March 31			Dec. 31			Sept. 30			June 30
BNY Mellon shareholders’ equity at period end – GAAP	$	41,533		$	41,225		$	40,638		$	41,560		$	41,505
Less: Preferred stock	3,542			3,542			3,542			3,542			3,542
BNY Mellon common shareholders’ equity at period end – GAAP	37,991			37,683			37,096			38,018			37,963
Less: Goodwill	17,337			17,367			17,350			17,390			17,418
Intangible assets	3,160			3,193			3,220			3,258			3,308
Add: Deferred tax liability – tax deductible goodwill	1,094			1,083			1,072			1,066			1,054
Deferred tax liability – intangible assets	687			690			692			699			709
BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP	$	19,275		$	18,896		$	18,290		$	19,135		$	19,000
Period-end common shares outstanding (in thousands)	942,662			957,517			960,426			988,777			999,945
Book value per common share – GAAP	$	40.30		$	39.36		$	38.63		$	38.45		$	37.97
Tangible book value per common share – Non-GAAP	$	20.45		$	19.74		$	19.04		$	19.35		$	19.00
Net interest margin reconciliation
(dollars in millions)	2Q19			1Q19			4Q18			3Q18			2Q18
Net interest revenue – GAAP	$	802		$	841		$	885		$	891		$	916
Add: Tax equivalent adjustment	4			4			4			5			5
Net interest revenue (FTE) – Non-GAAP	$	806		$	845		$	889		$	896		$	921
Average interest-earning assets	$	287,417		$	282,185		$	285,706		$	279,218		$	292,086
Net interest margin – GAAP (a)	1.12		%	1.20		%	1.24		%	1.27		%	1.26		%
Net interest margin (FTE) – Non-GAAP (a)	1.12		%	1.20		%	1.24		%	1.28		%	1.26		%
(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)	2Q19			1Q19			4Q18			3Q18			2Q18			YTD19			YTD18
Income before income taxes – GAAP	$	265		$	269		$	247		$	316		$	319		$	534		$	700
Total revenue – GAAP	$	917		$	939		$	963		$	1,015		$	1,018		$	1,856		$	2,106
Less: Distribution and servicing expense	94			91			95			99			103			185			213
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP	$	823		$	848		$	868		$	916		$	915		$	1,671		$	1,893
Pre-tax operating margin – GAAP (a)	29		%	29		%	26		%	31		%	31		%	29		%	33		%
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a)	32		%	32		%	29		%	35		%	35		%	32		%	37		%
(a)    Income before income taxes divided by total revenue.
Constant currency reconciliations							2Q19 vs.
(dollars in millions)	2Q19			2Q18			2Q18
Consolidated:
Investment management and performance fees	$	833		$	901		(8		)%
Impact of changes in foreign currency exchange rates	—			(16		)
Adjusted investment management and performance fees – Non-GAAP	$	833		$	885		(6		)%
Investment Management business:
Investment management and performance fees	$	829		$	897		(8		)%
Impact of changes in foreign currency exchange rates	—			(16		)
Adjusted investment management and performance fees – Non-GAAP	$	829		$	881		(6		)%

18