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

The Bank of New York Mellon Corporation

Financial Supplement

Fourth 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)																4Q19 vs.										FY19 vs.
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		FY19			FY18			FY18
Selected income statement data
Fee revenue	$	3,971		$	3,129		$	3,105		$	3,031		$	3,146		27	%	26	%	$	13,236		$	12,842		3	%
Net securities (losses) gains	(25		)	(1		)	7			1			—			N/M		N/M		(18		)	(48		)	N/M
Fee and other revenue	3,946			3,128			3,112			3,032			3,146			26		25		13,218			12,794			3
Income (loss) from consolidated investment management funds	17			3			10			26			(24		)	N/M		N/M		56			(13		)	N/M
Net interest revenue	815			730			802			841			885			12		(8	)	3,188			3,611			(12	)
Total revenue	4,778			3,861			3,924			3,899			4,007			24		19		16,462			16,392			—
Provision for credit losses	(8		)	(16		)	(8		)	7			—			N/M		N/M		(25		)	(11		)	N/M
Noninterest expense	2,964			2,590			2,647			2,699			2,987			14		(1	)	10,900			11,211			(3	)
Income before income taxes	1,822			1,287			1,285			1,193			1,020			42		79		5,587			5,192			8
Provision for income taxes	373			246			264			237			150			52		149		1,120			938			19
Net income	$	1,449		$	1,041		$	1,021		$	956		$	870		39	%	67	%	$	4,467		$	4,254		5	%
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	1,391		$	1,002		$	969		$	910		$	832		39	%	67	%	$	4,272		$	4,097		4	%
Diluted earnings per common share	$	1.52		$	1.07		$	1.01		$	0.94		$	0.84		42	%	81	%	$	4.51		$	4.04		12	%
Average common shares and equivalents outstanding - diluted (in thousands)	914,739			935,677			953,928			965,960			988,650			(2	)%	(7	)%	943,109			1,007,141			(6	)%
Financial ratios(Quarterly returns are annualized)
Pre-tax operating margin	38		%	33		%	33		%	31		%	25		%					34		%	32		%
Return on common equity (a)	14.6		%	10.6		%	10.4		%	10.0		%	8.7		%					11.4		%	10.8		%
Return on tangible common equity – Non-GAAP (a)	29.3		%	21.4		%	21.2		%	20.7		%	17.9		%					23.2		%	22.5		%
Non-U.S. revenue as a percentage of total revenue	31		%	37		%	36		%	36		%	36		%					35		%	37		%
Period end
Assets under custody and/or administration (“AUC/A”) (in trillions) (b)	$	37.1		$	35.8		$	35.5		$	34.5		$	33.1		4	%	12	%
Assets under management (“AUM”) (in trillions)	$	1.91		$	1.88		$	1.84		$	1.84		$	1.72		2	%	11	%
Full-time employees	48,400			48,700			49,100			49,800			51,300			(1	)%	(6	)%
Book value per common share (a)	$	42.12		$	40.75		$	40.30		$	39.36		$	38.63
Tangible book value per common share – Non-GAAP (a)	$	21.33		$	20.59		$	20.45		$	19.74		$	19.04
Cash dividends per common share	$	0.31		$	0.31		$	0.28		$	0.28		$	0.28
Common dividend payout ratio	20		%	29		%	28		%	30		%	33		%
Closing stock price per common share	$	50.33		$	45.21		$	44.15		$	50.43		$	47.07
Market capitalization	$	45,331		$	41,693		$	41,619		$	48,288		$	45,207
Common shares outstanding (in thousands)	900,683			922,199			942,662			957,517			960,426
Capital ratios at period end(c)
Common Equity Tier 1 ("CET1") ratio	11.5		%	11.1		%	11.1		%	11.1		%	10.7		%
Tier 1 capital ratio	13.6		%	13.2		%	13.2		%	13.2		%	12.8		%
Total capital ratio	14.4		%	14.0		%	14.0		%	14.0		%	13.6		%
Supplementary leverage ratio ("SLR")	6.1		%	6.0		%	6.3		%	6.3		%	6.0		%
(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 $1.5 trillion at Dec. 31, 2019, $1.4 trillion at Sept. 30, 2019 and June 30, 2019, $1.3 trillion at March 31, 2019 and $1.2 trillion at Dec. 31, 2018.
(c)    Regulatory capital ratios for Dec. 31, 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)																4Q19 vs.										FY19 vs.
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		FY19			FY18			FY18
Revenue
Investment services fees:
Asset servicing fees	$	1,148		$	1,152		$	1,141		$	1,122		$	1,126		—	%	2	%	$	4,563		$	4,608		(1	)%
Clearing services fees (a)	421			419			410			398			398			—		6		1,648			1,616			2
Issuer services fees	264			324			291			251			286			(19	)	(8	)	1,130			1,099			3
Treasury services fees	147			140			140			132			139			5		6		559			554			1
Total investment services fees (a)	1,980			2,035			1,982			1,903			1,949			(3	)	2		7,900			7,877			—
Investment management and performance fees (a)	883			832			833			841			884			6		—		3,389			3,647			(7	)
Foreign exchange and other trading revenue	168			150			166			170			181			12		(7	)	654			732			(11	)
Financing-related fees	46			49			50			51			50			(6	)	(8	)	196			207			(5	)
Distribution and servicing	34			33			31			31			35			3		(3	)	129			139			(7	)
Investment and other income	860			30			43			35			47			N/M		N/M		968			240			N/M
Total fee revenue	3,971			3,129			3,105			3,031			3,146			27		26		13,236			12,842			3
Net securities (losses) gains	(25		)	(1		)	7			1			—			N/M		N/M		(18		)	(48		)	N/M
Total fee and other revenue	3,946			3,128			3,112			3,032			3,146			26		25		13,218			12,794			3
Income (loss) from consolidated investment management funds	17			3			10			26			(24		)	N/M		N/M		56			(13		)	N/M
Net interest revenue	815			730			802			841			885			12		(8	)	3,188			3,611			(12	)
Total revenue	4,778			3,861			3,924			3,899			4,007			24		19		16,462			16,392			—
Provision for credit losses	(8		)	(16		)	(8		)	7			—			N/M		N/M		(25		)	(11		)	N/M
Noninterest expense
Staff	1,639			1,479			1,421			1,524			1,602			11		2		6,063			6,145			(1	)
Professional, legal and other purchased services	367			316			337			325			383			16		(4	)	1,345			1,334			1
Software and equipment	326			309			304			283			300			6		9		1,222			1,062			15
Net occupancy	151			138			138			137			196			9		(23	)	564			630			(10	)
Sub-custodian and clearing	119			111			115			105			115			7		3		450			450			—
Distribution and servicing	92			97			94			91			95			(5	)	(3	)	374			406			(8	)
Business development	65			47			56			45			64			38		2		213			228			(7	)
Bank assessment charges	32			31			31			31			22			3		45		125			170			(26	)
Amortization of intangible assets	28			30			30			29			35			(7	)	(20	)	117			180			(35	)
Other	145			32			121			129			175			353		(17	)	427			606			(30	)
Total noninterest expense	2,964			2,590			2,647			2,699			2,987			14		(1	)	10,900			11,211			(3	)
Income before income taxes	1,822			1,287			1,285			1,193			1,020			42		79		5,587			5,192			8
Provision for income taxes	373			246			264			237			150			52		149		1,120			938			19
Net income	1,449			1,041			1,021			956			870			39		67		4,467			4,254			5
Net (income) loss attributable to noncontrolling interests	(9		)	(3		)	(4		)	(10		)	11			N/M		N/M		(26		)	12			N/M
Preferred stock dividends	(49		)	(36		)	(48		)	(36		)	(49		)	N/M		N/M		(169		)	(169		)	—
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	1,391		$	1,002		$	969		$	910		$	832		39	%	67	%	$	4,272		$	4,097		4	%
Average common shares and equivalents outstanding: Basic	911,324			933,264			951,281			962,397			984,343			(2	)%	(7	)%	939,623			1,002,922			(6	)%
Diluted	914,739			935,677			953,928			965,960			988,650			(2	)%	(7	)%	943,109			1,007,141			(6	)%
Earnings per common share: Basic	$	1.52		$	1.07		$	1.01		$	0.94		$	0.84		42	%	81	%	$	4.53		$	4.06		12	%
Diluted	$	1.52		$	1.07		$	1.01		$	0.94		$	0.84		42	%	81	%	$	4.51		$	4.04		12	%
(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)	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
Assets
Cash and due from banks	$	4,830		$	6,718		$	5,556		$	5,980		$	5,864
Interest-bearing deposits with the Federal Reserve and other central banks	95,042			73,811			69,700			60,699			67,988
Interest-bearing deposits with banks	14,811			15,417			15,491			13,681			14,148
Federal funds sold and securities purchased under resale agreements	30,182			43,723			61,201			40,158			46,795
Securities	123,033			122,340			120,142			117,504			119,791
Trading assets	13,571			10,180			8,629			6,868			7,035
Loans	54,953			54,881			52,396			53,487			56,564
Allowance for loan losses	(122		)	(127		)	(146		)	(146		)	(146		)
Net loans	54,831			54,754			52,250			53,341			56,418
Premises and equipment (a)	3,625			3,149			2,970			3,010			1,832
Accrued interest receivable	624			596			658			651			671
Goodwill	17,386			17,248			17,337			17,367			17,350
Intangible assets	3,107			3,124			3,160			3,193			3,220
Other assets	20,221			21,727			23,737			23,228			21,298
Subtotal assets of operations	381,263			372,787			380,831			345,680			362,410
Assets of consolidated investment management funds, at fair value	245			381			337			452			463
Total assets	$	381,508		$	373,168		$	381,168		$	346,132		$	362,873
Liabilities
Deposits	$	259,466		$	249,660		$	252,877		$	222,382		$	238,778
Federal funds purchased and securities sold under repurchase agreements	11,401			11,796			11,757			11,761			14,243
Trading liabilities	4,841			4,756			3,768			3,892			3,479
Payables to customers and broker-dealers	18,758			18,364			18,946			19,310			19,731
Commercial paper	3,959			3,538			8,894			2,773			1,939
Other borrowed funds	599			820			1,921			3,932			3,227
Accrued taxes and other expenses	5,642			5,081			5,045			4,686			5,669
Other liabilities (a)	7,612			9,796			7,916			8,050			5,774
Long-term debt	27,501			27,872			28,203			27,874			29,163
Subtotal liabilities of operations	339,779			331,683			339,327			304,660			322,003
Liabilities of consolidated investment management funds, at fair value	1			15			6			3			2
Total liabilities	339,780			331,698			339,333			304,663			322,005
Temporary equity
Redeemable noncontrolling interests	143			147			136			122			129
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	27,515			27,471			27,406			27,349			27,118
Retained earnings	31,894			30,789			30,081			29,382			28,652
Accumulated other comprehensive loss, net of tax	(2,638		)	(2,893		)	(2,688		)	(2,990		)	(3,171		)
Less: Treasury stock, at cost	(18,844		)	(17,803		)	(16,822		)	(16,072		)	(15,517		)
Total The Bank of New York Mellon Corporation shareholders’ equity	41,483			41,120			41,533			41,225			40,638
Nonredeemable noncontrolling interests of consolidated investment management funds	102			203			166			122			101
Total permanent equity	41,585			41,323			41,699			41,347			40,739
Total liabilities, temporary equity and permanent equity	$	381,508		$	373,168		$	381,168		$	346,132		$	362,873
(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
																4Q19 vs.										FY19 vs.
(dollars in millions)	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		FY19			FY18			FY18
Investment services fees:
Asset servicing fees	$	1,104		$	1,109		$	1,097		$	1,074		$	1,079		—	%	2	%	$	4,384		$	4,388		—	%
Securities lending revenue	44			43			44			48			47			2		(6	)	179			220			(19	)
Clearing services fees (a)	421			419			410			398			398			—		6		1,648			1,616			2
Issuer services fees	264			324			291			251			286			(19	)	(8	)	1,130			1,099			3
Treasury services fees	147			140			140			132			139			5		6		559			554			1
Total investment services fees (a)	1,980			2,035			1,982			1,903			1,949			(3	)	2		7,900			7,877			—
Investment management and performance fees (b)
Investment management fee	835			830			831			810			830			1		1		3,306			3,503			(6	)
Performance fees	48			2			2			31			54			N/M		N/M		83			144			(42	)
Total investment management and performance fees (a)(c)	883			832			833			841			884			6		—		3,389			3,647			(7	)
Foreign exchange and other trading revenue:
Foreign exchange	138			129			150			160			159			7		(13	)	577			663			(13	)
Other trading revenue	30			21			16			10			22			N/M		N/M		77			69			N/M
Total foreign exchange and other trading revenue	168			150			166			170			181			12		(7	)	654			732			(11	)
Financing-related fees	46			49			50			51			50			(6	)	(8	)	196			207			(5	)
Distribution and servicing	34			33			31			31			35			3		(3	)	129			139			(7	)
Investment and other income:
Corporate/bank-owned life insurance	43			33			32			30			42			N/M		N/M		138			145			N/M
Expense reimbursements from joint venture	20			21			19			19			19			N/M		N/M		79			71			N/M
Asset-related gains	815			2			1			1			2			N/M		N/M		819			70			N/M
Seed capital gains (losses) (b)	4			—			8			2			(8		)	N/M		N/M		14			3			N/M
Other (loss)	(22		)	(26		)	(17		)	(17		)	(8		)	N/M		N/M		(82		)	(49		)	N/M
Total investment and other income (b)	860			30			43			35			47			N/M		N/M		968			240			N/M
Total fee revenue	3,971			3,129			3,105			3,031			3,146			27		26		13,236			12,842			3
Net securities (losses) gains	(25		)	(1		)	7			1			—			N/M		N/M		(18		)	(48		)	N/M
Total fee and other revenue	$	3,946		$	3,128		$	3,112		$	3,032		$	3,146		26	%	25	%	$	13,218		$	12,794		3	%
(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 were essentially unchanged compared with 4Q18. 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
	4Q19				3Q19					2Q19				1Q19				4Q18
	Average balance		Average rate		Average balance		Average rate			Average balance		Average rate		Average balance		Average rate		Average balance		Average rate
(dollars in millions; average rates are annualized)
Assets
Interest-earning assets:
Interest-bearing deposits with the Federal Reserve and other central banks	$	61,627	0.60	%	$	60,030	0.67	%		$	61,756	0.72	%	$	63,583	0.87	%	$	63,916	0.89	%
Interest-bearing deposits with banks (primarily foreign banks)	15,788		1.63		15,324		1.89			13,666		1.87		13,857		1.85		14,666		1.67
Federal funds sold and securities purchased under resale agreements (a)	38,846		4.62		40,816		6.42			38,038		5.99		28,968		6.63		28,843		5.98
Margin loans	11,609		3.25		10,303		4.02			10,920		4.36		12,670		4.34		13,369		4.08
Non-margin loans:
Domestic offices	29,690		3.36		29,285		2.75		(b)	29,492		3.86		28,177		3.85		29,576		3.73
Foreign offices	11,418		2.70		11,247		2.97			9,961		3.29		10,511		3.32		10,889		3.10
Total non-margin loans	41,108		3.18		40,532		2.81		(b)	39,453		3.71		38,688		3.70		40,465		3.56
Securities:
U.S. government obligations	18,444		2.08		19,315		2.11			18,870		2.19		23,597		2.22		24,531		2.14
U.S. government agency obligations	67,494		2.36		67,235		2.49			66,445		2.58		64,867		2.63		64,496		2.54
State and political subdivisions (c)	1,134		3.03		1,217		3.05			1,735		2.89		2,206		2.71		2,263		2.63
Other securities (c)	35,242		1.64		33,729		1.75			30,770		2.04		28,647		2.13		27,614		1.91
Trading securities (c)	6,695		2.41		5,653		2.80			5,764		2.72		5,102		2.91		5,543		2.77
Total securities (c)	129,009		2.13		127,149		2.25			123,584		2.40		124,419		2.45		124,447		2.33
Total interest-earning assets (c)	$	297,987	2.30	%	$	294,154	2.63	%	(b)	$	287,417	2.74	%	$	282,185	2.75	%	$	285,706	2.60	%
Noninterest-earning assets	56,354				56,525					54,967				53,980				52,885
Total assets	$	354,341			$	350,679				$	342,384			$	336,165			$	338,591
Liabilities and equity
Interest-bearing liabilities:
Interest-bearing deposits:
Domestic offices	$	87,162	0.98	%	$	82,663	1.28	%		$	74,180	1.36	%	$	70,562	1.29	%	$	72,929	1.19	%
Foreign offices	95,262		0.49		94,738		0.71			93,365		0.78		89,317		0.76		88,734		0.59
Total interest-bearing deposits	182,424		0.73		177,401		0.98			167,545		1.04		159,879		0.99		161,663		0.86
Federal funds purchased and securities sold under repurchase agreements (a)	12,668		9.11		13,432		13.08			11,809		12.64		11,922		11.26		10,980		10.95
Trading liabilities	1,504		2.25		1,371		2.33			1,735		2.47		1,305		2.25		1,330		1.86
Other borrowed funds	709		2.83		1,148		3.24			2,455		3.36		3,305		2.87		2,903		2.44
Commercial paper	1,792		1.66		3,796		2.26			2,957		2.43		1,377		2.44		353		2.41
Payables to customers and broker-dealers	15,178		1.07		15,440		1.52			15,666		1.76		16,108		1.76		15,727		1.61
Long-term debt	28,117		3.09		28,386		3.24			27,681		3.45		28,254		3.52		28,201		3.29
Total interest-bearing liabilities	$	242,392	1.48	%	$	240,974	1.99	%		$	229,848	2.03	%	$	222,150	1.96	%	$	221,157	1.75	%
Total noninterest-bearing deposits	49,632				49,027					52,956				54,583				58,972
Other noninterest-bearing liabilities	20,681				19,280					18,362				18,628				16,754
Total The Bank of New York Mellon Corporation shareholders’ equity	41,384				41,139					41,029				40,628				41,428
Noncontrolling interests	252				259					189				176				280
Total liabilities and equity	$	354,341			$	350,679				$	342,384			$	336,165			$	338,591
Net interest margin			1.09	%			0.99	%	(b)			1.12	%			1.20	%			1.24	%
Net interest margin (FTE) – Non-GAAP (d)			1.09	%			1.00	%	(b)			1.12	%			1.20	%			1.24	%
(a)    Includes the average impact of offsetting under enforceable netting agreements of approximately $60 billion for 4Q19, $68 billion for 3Q19, $51 billion for 2Q19, $44 billion for 1Q19 and $43 billion for 4Q18. 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 1.82% for 4Q19, 2.42% for 3Q19, 2.57% for 2Q19, 2.63% for 1Q19 and 2.41% for 4Q18.  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 1.59% for 4Q19, 2.17% for 3Q19, 2.39% for 2Q19, 2.40% for 1Q19 and 2.24% for 4Q18. 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)    Includes the impact of the lease-related impairment of $70 million in 3Q19. On a Non-GAAP basis, excluding the lease-related impairment, the yield on non-margin loans in domestic offices would have been 3.70%, the yield on total non-margin loans would have been 3.50%, the yield on total interest-earning assets would have been 2.72% and the net interest margin and the net interest margin (FTE) – Non-GAAP would have been 1.09% in 3Q19.
(c)    Average rates were calculated on an FTE basis, at tax rates of approximately 21%.
(d)    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)	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
Consolidated regulatory capital ratios (a)
Standardized Approach:
CET1 capital	$	18,529		$	18,196		$	18,534		$	18,156		$	17,567
Tier 1 capital	21,985			21,677			22,015			21,639			21,044
Total capital	23,438			23,145			23,500			23,136			22,536
Risk-weighted assets	147,283			148,399			149,226			151,101			149,618
CET1 ratio	12.6		%	12.3		%	12.4		%	12.0		%	11.7		%
Tier 1 capital ratio	14.9			14.6			14.8			14.3			14.1
Total capital ratio	15.9			15.6			15.7			15.3			15.1
Advanced Approaches:
CET1 capital	$	18,529		$	18,196		$	18,534		$	18,156		$	17,567
Tier 1 capital	21,985			21,677			22,015			21,639			21,044
Total capital	23,222			22,921			23,300			22,941			22,349
Risk-weighted assets	161,105			164,172			166,570			163,618			164,671
CET1 ratio	11.5		%	11.1		%	11.1		%	11.1		%	10.7		%
Tier 1 capital ratio	13.6			13.2			13.2			13.2			12.8
Total capital ratio	14.4			14.0			14.0			14.0			13.6
Tier 1 leverage ratio	6.6		%	6.5		%	6.8		%	6.8		%	6.6		%
SLR:
Leverage exposure	$	362,479		$	359,023		$	350,747		$	344,829		$	347,943
SLR	6.1		%	6.0		%	6.3		%	6.3		%	6.0		%
Average liquidity coverage ratio	120		%	117		%	117		%	118		%	118		%
(a)    Regulatory capital ratios for Dec. 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
																4Q19 vs.										FY19 vs.
(dollars in millions)	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		FY19			FY18			FY18
Revenue:
Investment services fees:
Asset servicing fees (ex. securities lending revenue) (a)	$	1,084		$	1,093		$	1,080		$	1,059		$	1,063		(1	)%	2	%	$	4,316		$	4,322		—	%
Securities lending revenue	40			39			40			44			43			3		(7	)	163			198			(18	)
Clearing services fees (b)	421			419			411			398			398			—		6		1,649			1,615			2
Issuer services fees	264			324			291			251			286			(19	)	(8	)	1,130			1,099			3
Treasury services fees	147			139			140			132			139			6		6		558			553			1
Total investment services fees (b)	1,956			2,014			1,962			1,884			1,929			(3	)	1		7,816			7,787			—
Foreign exchange and other trading revenue	151			160			153			157			163			(6	)	(7	)	621			665			(7	)
Other (b)(c)	115			117			112			113			121			(2	)	(5	)	457			474			(4	)
Total fee and other revenue	2,222			2,291			2,227			2,154			2,213			(3	)	—		8,894			8,926			—
Net interest revenue	769			753			775			796			827			2		(7	)	3,093			3,372			(8	)
Total revenue	2,991			3,044			3,002			2,950			3,040			(2	)	(2	)	11,987			12,298			(3	)
Provision for credit losses	(5		)	(15		)	(4		)	8			6			N/M		N/M		(16		)	1			N/M
Noninterest expense (ex. amortization of intangible assets)	2,142			1,944			1,934			1,949			2,090			10		2		7,969			7,929			1
Amortization of intangible assets	19			21			20			20			22			(10	)	(14	)	80			129			(38	)
Total noninterest expense	2,161			1,965			1,954			1,969			2,112			10		2		8,049			8,058			—
Income before taxes	$	835		$	1,094		$	1,052		$	973		$	922		(24	)%	(9	)%	$	3,954		$	4,239		(7	)%
Pre-tax operating margin	28		%	36		%	35		%	33		%	30		%					33		%	34		%
Total revenue by line of business:
Asset Servicing	$	1,397		$	1,405		$	1,391		$	1,407		$	1,435		(1	)%	(3	)%	$	5,600		$	5,932		(6	)%
Pershing	570			568			564			554			558			—		2		2,256			2,255			—
Issuer Services	415			466			446			396			441			(11	)	(6	)	1,723			1,743			(1	)
Treasury Services	329			312			317			317			328			5		—		1,275			1,302			(2	)
Clearance and Collateral Management	280			293			284			276			278			(4	)	1		1,133			1,066			6
Total revenue by line of business	$	2,991		$	3,044		$	3,002		$	2,950		$	3,040		(2	)%	(2	)%	$	11,987		$	12,298		(3	)%
(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, securities gains and losses and investment and other income.
N/M - Not meaningful.

9

THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SERVICES BUSINESS
											4Q19 vs.							FY19 vs.
(dollars in millions, unless otherwise noted)	4Q19		3Q19		2Q19		1Q19		4Q18		3Q19	4Q18		FY19		FY18		FY18
Average loans	$	34,238	$	32,758	$	32,287	$	33,171	$	35,540	5	(4	)%	$	33,115	$	36,931	(10	)%
Average assets	$	277,956	$	269,784	$	264,639	$	255,891	$	262,584	3	6	%	$	267,135	$	262,747	2	%
Average deposits	$	215,388	$	208,044	$	201,146	$	195,082	$	203,416	4	6	%	$	204,979	$	203,279	1	%
AUC/A at period end (in trillions) (a)(b)	$	37.1	$	35.8	$	35.5	$	34.5	$	33.1	4	12	%
Market value of securities on loan at period end (in billions) (c)	$	378	$	362	$	369	$	377	$	373	4	1	%
Pershing
Average active clearing accounts (U.S. platform) (in thousands)	6,340		6,283		6,254		6,169		6,125		1	4	%
Average long-term mutual fund assets (U.S. platform)	$	573,475	$	547,522	$	532,384	$	507,606	$	489,491	5	17	%
Average investor margin loans (U.S. platform)	$	9,420	$	9,222	$	9,440	$	10,093	$	10,921	2	(14	)%
Clearance and Collateral Management
Average tri-party collateral management balances (in billions)	$	3,562	$	3,550	$	3,400	$	3,266	$	3,181	—	12	%
(a)    Dec. 31, 2019 information is preliminary.
(b)    Includes the AUC/A of CIBC Mellon of $1.5 trillion at Dec. 31, 2019, $1.4 trillion at Sept. 30, 2019 and June 30, 2019, $1.3 trillion at March 31, 2019 and $1.2 trillion at Dec. 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 $60 billion at Dec. 31, 2019, $66 billion at Sept. 30, 2019, $64 billion at June 30, 2019, $62 billion at March 31, 2019 and $58 billion at Dec.31, 2018.

10

THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT MANAGEMENT BUSINESS
																4Q19 vs.										FY19 vs.
(dollars in millions)	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		FY19			FY18			FY18
Revenue:
Investment management fees (a)	$	831		$	826		$	827		$	806		$	826		1	%	1	%	$	3,290		$	3,488		(6	)%
Performance fees	48			2			2			31			54			N/M		(11	)	83			144			(42	)
Investment management and performance fees (b)	879			828			829			837			880			6		—		3,373			3,632			(7	)
Distribution and servicing	44			45			44			45			45			(2	)	(2	)	178			190			(6	)
Other (a)	(4		)	(40		)	(23		)	(18		)	(35		)	N/M		N/M		(85		)	(41		)	N/M
Total fee and other revenue (a)	919			833			850			864			890			10		3		3,466			3,781			(8	)
Net interest revenue	56			57			67			75			73			(2	)	(23	)	255			303			(16	)
Total revenue	975			890			917			939			963			10		1		3,721			4,084			(9	)
Provision for credit losses	—			—			(2		)	1			1			N/M		N/M		(1		)	3			N/M
Noninterest expense (ex. amortization of intangible assets)	721			580			645			660			702			24		3		2,606			2,767			(6	)
Amortization of intangible assets	9			10			9			9			13			(10	)	(31	)	37			51			(27	)
Total noninterest expense	730			590			654			669			715			24		2		2,643			2,818			(6	)
Income before taxes	$	245		$	300		$	265		$	269		$	247		(18	)%	(1	)%	$	1,079		$	1,263		(15	)%
Pre-tax operating margin	25		%	34		%	29		%	29		%	26		%					29		%	31		%
Adjusted pre-tax operating margin – Non-GAAP (c)	28		%	38		%	32		%	32		%	29		%					32		%	34		%
Total revenue by line of business:
Asset Management	$	688		$	605		$	618		$	637		$	660		14	%	4	%	$	2,548		$	2,836		(10	)%
Wealth Management	287			285			299			302			303			1		(5	)	1,173			1,248			(6	)
Total revenue by line of business	$	975		$	890		$	917		$	939		$	963		10	%	1	%	$	3,721		$	4,084		(9	)%
Average loans	$	16,505		$	16,260		$	16,322		$	16,403		$	16,485		2	%	—	%	$	16,372		$	16,774		(2	)%
Average assets	$	30,615		$	30,326		$	30,709		$	31,857		$	31,043		1	%	(1	)%	$	30,697		$	31,446		(2	)%
Average deposits	$	15,195		$	14,083		$	14,615		$	15,815		$	14,893		8	%	2	%	$	14,923		$	14,291		4	%
(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 (Non-GAAP), investment management and performance fees were essentially unchanged compared with 4Q18. 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
																4Q19 vs.										FY19 vs.
(dollars in billions)	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		FY19			FY18			FY18
AUM by product type (a)(b)
Equity	$	154		$	147		$	152		$	149		$	135		5	%	14	%
Fixed income	224			211			209			208			200			6		12
Index	339			321			322			333			301			6		13
Liability-driven investments	728			742			709			709			659			(2	)	10
Multi-asset and alternative investments	192			182			184			178			167			5		15
Cash	273			278			267			264			260			(2	)	5
Total AUM by product type	$	1,910		$	1,881		$	1,843		$	1,841		$	1,722		2	%	11	%
Changes in AUM(a)(b)
Beginning balance of AUM	$	1,881		$	1,843		$	1,841		$	1,722		$	1,828						$	1,722		$	1,893
Net inflows (outflows):
Long-term strategies:
Equity	(6		)	(4		)	(2		)	(4		)	(8		)					(16		)	(13		)
Fixed income	5			2			(4		)	3			(1		)					6			4
Liability-driven investments	(3		)	(4		)	1			5			14							(1		)	45
Multi-asset and alternative investments	3			(1		)	1			(4		)	(2		)					(1		)	(6		)
Total long-term active strategies (outflows) inflows	(1		)	(7		)	(4		)	—			3							(12		)	30
Index	(5		)	(3		)	(22		)	(2		)	(11		)					(32		)	(34		)
Total long-term strategies (outflows)	(6		)	(10		)	(26		)	(2		)	(8		)					(44		)	(4		)
Short-term strategies:
Cash	(7		)	11			2			2			(10		)					8			(35		)
Total net (outflows) inflows	(13		)	1			(24		)	—			(18		)					(36		)	(39		)
Net market impact	(20		)	66			42			103			(69		)					191			(48		)
Net currency impact	62			(29		)	(16		)	16			(19		)					33			(53		)
Divestiture/Other	—			—			—			—			—							—			(31		)
Ending balance of AUM	$	1,910		$	1,881		$	1,843		$	1,841		$	1,722		2	%	11	%	$	1,910		$	1,722		11	%
Wealth Management client assets (a)(c)	$	266		$	259		$	257		$	253		$	239		3	%	11	%
(a)    Dec. 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.

12

THE BANK OF NEW YORK MELLON CORPORATION
OTHER SEGMENT
(in millions)	4Q19			3Q19			2Q19			1Q19			4Q18			FY19			FY18
Fee revenue	$	836		$	5		$	34		$	29		$	29		$	904		$	133
Net securities (losses) gains	(23		)	(1		)	7			1			—			(16		)	(48		)
Total fee and other revenue	813			4			41			30			29			888			85
Net interest (expense)	(10		)	(80		)	(40		)	(30		)	(15		)	(160		)	(64		)
Total revenue (loss)	803			(76		)	1			—			14			728			21
Provision for credit losses	(3		)	(1		)	(2		)	(2		)	(7		)	(8		)	(15		)
Noninterest expense	73			35			39			61			160			208			334
Income (loss) before taxes	$	733		$	(110	)	$	(36	)	$	(59	)	$	(139	)	$	528		$	(298	)
Average loans and leases	$	1,974		$	1,817		$	1,764		$	1,784		$	1,809		$	1,836		$	2,105
Average assets	$	45,770		$	50,569		$	47,036		$	48,417		$	44,964		$	48,123		$	49,581

13

THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SECURITIES PORTFOLIO
(dollars in millions)	Sept. 30, 2019			4Q19 change in unrealized gain (loss)			Dec. 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	$	53,254		$	24		$	54,379	$	54,646		100	%	$	267			100	%	—	%	—	%	—	%	—	%
U.S. Treasury	18,541			24			18,797		18,865			100		68				100		—		—		—		—
Sovereign debt/sovereign guaranteed	13,932			(65		)	13,304		13,404			101		100				74		5		20		1		—
Agency commercial MBS	10,598			(41		)	10,557		10,613			101		56				100		—		—		—		—
Foreign covered bonds	3,670			(11		)	4,268		4,276			100		8				100		—		—		—		—
CLOs	3,868			(1		)	4,078		4,063			100		(15		)		99		—		—		1		—
Supranational	4,113			(26		)	3,724		3,734			100		10				100		—		—		—		—
U.S. government agencies	3,344			(16		)	2,913		2,933			101		20				100		—		—		—		—
Foreign government agencies	2,183			(5		)	2,638		2,641			100		3				95		5		—		—		—
Non-agency commercial MBS	2,250			(12		)	2,134		2,165			101		31				98		2		—		—		—
Other asset-backed securities	2,484			(5		)	2,141		2,143			100		2				100		—		—		—		—
Non-agency RMBS (c)	1,301			(14		)	1,118		1,316			118		198				26		11		3		37		23
State and political subdivisions	1,200			2			1,034		1,061			103		27				77		22		—		—		1
Corporate bonds	879			—			832		853			103		21				17		68		15		—		—
Other	74			(3		)	1		1			100		—				—		—		—		—		100
Total investment securities	$	121,691	(d)	$	(149	)	$	121,918	$	122,714	(d)	101	%	$	796		(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 $689 million at Sept. 30, 2019 and $640 million at Dec. 31, 2019.
(d)    Includes net unrealized losses on derivatives hedging securities available-for-sale of $963 million at Sept. 30, 2019 and $641 million at Dec. 31, 2019.
(e)    Includes unrealized gains of $474 million at Dec. 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)	Dec. 31			Sept. 30			June 30				March 31				Dec. 31
Allowance for credit losses - beginning of period:
Allowance for loan losses	$	127		$	146		$	146			$	146			$	140
Allowance for lending-related commitments	97			95			102				106				111
Allowance for credit losses - beginning of period	$	224		$	241		$	248			$	252			$	251
Net (charge-offs) recoveries:
Charge-offs	(1		)	(1		)	(1		)		(11		)		—
Recoveries	1			—			2				—				1
Total net (charge-offs) recoveries	—			(1		)	1				(11		)		1
Provision for credit losses	(8		)	(16		)	(8		)		7				—
Allowance for credit losses - end of period	$	216		$	224		$	241			$	248			$	252
Allowance for credit losses - end of period:
Allowance for loan losses	$	122		$	127		$	146			$	146			$	146
Allowance for lending-related commitments	94			97			95				102				106
Allowance for credit losses - end of period	$	216		$	224		$	241			$	248			$	252
Allowance for loan losses as a percentage of total loans	0.22		%	0.23		%	0.28		%		0.27		%		0.26		%
Nonperforming assets	$	89		$	88		$	186		(a)	$	174		(a)	$	79
(a) Includes nonperforming loans to a California utility company that filed for bankruptcy that were sold in 3Q19.

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)	4Q19			3Q19			2Q19			1Q19			4Q18			FY19			FY18
Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP	$	1,391		$	1,002		$	969		$	910		$	832		$	4,272		$	4,097
Add: Amortization of intangible assets	28			30			30			29			35			117			180
Less: Tax impact of amortization of intangible assets	7			7			7			7			8			28			42
Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets – Non-GAAP	$	1,412		$	1,025		$	992		$	932		$	859		$	4,361		$	4,235
Average common shareholders’ equity	$	37,842		$	37,597		$	37,487		$	37,086		$	37,886		$	37,505		$	37,818
Less: Average goodwill	17,332			17,267			17,343			17,376			17,358			17,329			17,458
Average intangible assets	3,119			3,141			3,178			3,209			3,239			3,162			3,314
Add: Deferred tax liability – tax deductible goodwill	1,098			1,103			1,094			1,083			1,072			1,098			1,072
Deferred tax liability – intangible assets	670			679			687			690			692			670			692
Average tangible common shareholders’ equity – Non-GAAP	$	19,159		$	18,971		$	18,747		$	18,274		$	19,053		$	18,782		$	18,810
Return on common equity – GAAP	14.6		%	10.6		%	10.4		%	10.0		%	8.7		%	11.4		%	10.8		%
Return on tangible common equity – Non-GAAP	29.3		%	21.4		%	21.2		%	20.7		%	17.9		%	23.2		%	22.5		%

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)	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
BNY Mellon shareholders’ equity at period end – GAAP	$	41,483		$	41,120		$	41,533		$	41,225		$	40,638
Less: Preferred stock	3,542			3,542			3,542			3,542			3,542
BNY Mellon common shareholders’ equity at period end – GAAP	37,941			37,578			37,991			37,683			37,096
Less: Goodwill	17,386			17,248			17,337			17,367			17,350
Intangible assets	3,107			3,124			3,160			3,193			3,220
Add: Deferred tax liability – tax deductible goodwill	1,098			1,103			1,094			1,083			1,072
Deferred tax liability – intangible assets	670			679			687			690			692
BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP	$	19,216		$	18,988		$	19,275		$	18,896		$	18,290
Period-end common shares outstanding (in thousands)	900,683			922,199			942,662			957,517			960,426
Book value per common share – GAAP	$	42.12		$	40.75		$	40.30		$	39.36		$	38.63
Tangible book value per common share – Non-GAAP	$	21.33		$	20.59		$	20.45		$	19.74		$	19.04
Net interest margin reconciliation
(dollars in millions)	4Q19			3Q19			2Q19			1Q19			4Q18
Net interest revenue – GAAP	$	815		$	730		$	802		$	841		$	885
Add: Tax equivalent adjustment	2			3			4			4			4
Net interest revenue (FTE) – Non-GAAP	$	817		$	733		$	806		$	845		$	889
Average interest-earning assets	$	297,987		$	294,154		$	287,417		$	282,185		$	285,706
Net interest margin – GAAP (a)	1.09		%	0.99		%	1.12		%	1.20		%	1.24		%
Net interest margin (FTE) – Non-GAAP (a)	1.09		%	1.00		%	1.12		%	1.20		%	1.24		%
(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)	4Q19			3Q19			2Q19			1Q19			4Q18			FY19			FY18
Income before income taxes – GAAP	$	245		$	300		$	265		$	269		$	247		$	1,079		$	1,263
Total revenue – GAAP	$	975		$	890		$	917		$	939		$	963		$	3,721		$	4,084
Less: Distribution and servicing expense	93			98			94			91			95			376			407
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP	$	882		$	792		$	823		$	848		$	868		$	3,345		$	3,677
Pre-tax operating margin – GAAP (a)	25		%	34		%	29		%	29		%	26		%	29		%	31		%
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a)	28		%	38		%	32		%	32		%	29		%	32		%	34		%
(a)    Income before income taxes divided by total revenue.
Constant currency reconciliations							4Q19 vs.
(dollars in millions)	4Q19			4Q18			4Q18
Consolidated:
Investment management and performance fees – GAAP	$	883		$	884		—		%
Impact of changes in foreign currency exchange rates	—			—
Adjusted investment management and performance fees – Non-GAAP	$	883		$	884		—		%
Investment Management business:
Investment management and performance fees – GAAP	$	879		$	880		—		%
Impact of changes in foreign currency exchange rates	—			—
Adjusted investment management and performance fees – Non-GAAP	$	879		$	880		—		%

18