The Bank of New York Mellon Corporation (BK) 8-K Bny Mellon Reports Second Quarter 2020 Earnings of

The Bank of New York Mellon Corporation

Financial Supplement

Second Quarter 2020

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 and Wealth Management Business		11
AUM by Product, AUM Flows and Wealth Management Client Assets		12
Other Segment		13
Other
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)																2Q20 vs.										YTD20 vs.
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20		2Q19		YTD20			YTD19			YTD19
Selected income statement data
Fee revenue	$	3,167		$	3,323		$	3,971		$	3,129		$	3,105		(5	)%	2	%	$	6,490		$	6,136		6	%
Net securities gains (losses)	9			9			(25		)	(1		)	7			N/M		N/M		18			8			N/M
Total fee and other revenue	3,176			3,332			3,946			3,128			3,112			(5	)	2		6,508			6,144			6
Income (loss) from consolidated investment management funds	54			(38		)	17			3			10			N/M		N/M		16			36			N/M
Net interest revenue	780			814			815			730			802			(4	)	(3	)	1,594			1,643			(3	)
Total revenue	4,010			4,108			4,778			3,861			3,924			(2	)	2		8,118			7,823			4
Provision for credit losses	143			169			(8		)	(16		)	(8		)	N/M		N/M		312			(1		)	N/M
Noninterest expense	2,686			2,712			2,964			2,590			2,647			(1	)	1		5,398			5,346			1
Income before income taxes	1,181			1,227			1,822			1,287			1,285			(4	)	(8	)	2,408			2,478			(3	)
Provision for income taxes	216			265			373			246			264			(18	)	(18	)	481			501			(4	)
Net income	$	965		$	962		$	1,449		$	1,041		$	1,021		—	%	(5	)%	$	1,927		$	1,977		(3	)%
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	901		$	944		$	1,391		$	1,002		$	969		(5	)%	(7	)%	$	1,845		$	1,879		(2	)%
Diluted earnings per common share	$	1.01		$	1.05		$	1.52		$	1.07		$	1.01		(4	)%	—	%	$	2.06		$	1.95		6	%
Average common shares and equivalents outstanding - diluted (in thousands)	890,561			896,689			914,739			935,677			953,928			(1	)%	(7	)%	893,603			959,957			(7	)%
Financial ratios(Quarterly returns are annualized)
Pre-tax operating margin	29		%	30		%	38		%	33		%	33		%					30		%	32		%
Return on common equity	9.4		%	10.1		%	14.6		%	10.6		%	10.4		%					9.7		%	10.2		%
Return on tangible common equity – Non-GAAP (a)	18.5		%	20.4		%	29.3		%	21.4		%	21.2		%					19.4		%	20.9		%
Non-U.S. revenue as a percentage of total revenue	36		%	36		%	31		%	37		%	36		%					36		%	36		%
Period end
Assets under custody and/or administration (“AUC/A”) (in trillions) (b)	$	37.3		$	35.2		$	37.1		$	35.8		$	35.5		6	%	5	%
Assets under management (“AUM”) (in trillions)	$	1.96		$	1.80		$	1.91		$	1.88		$	1.84		9	%	6	%
Full-time employees	48,300			47,900			48,400			48,700			49,100			1	%	(2	)%
Book value per common share	$	44.21		$	42.47		$	42.12		$	40.75		$	40.30
Tangible book value per common share – Non-GAAP (a)	$	23.31		$	21.53		$	21.33		$	20.59		$	20.45
Cash dividends per common share	$	0.31		$	0.31		$	0.31		$	0.31		$	0.28
Common dividend payout ratio	31		%	30		%	20		%	29		%	28		%
Closing stock price per common share	$	38.65		$	33.68		$	50.33		$	45.21		$	44.15
Market capitalization	$	34,239		$	29,822		$	45,331		$	41,693		$	41,619
Common shares outstanding (in thousands)	885,862			885,443			900,683			922,199			942,662
Capital ratios at period end(c)
Common Equity Tier 1 ("CET1") ratio	12.6		%	11.3		%	11.5		%	11.1		%	11.1		%
Tier 1 capital ratio	15.4		%	13.5		%	13.7		%	13.2		%	13.2		%
Total capital ratio	16.3		%	14.3		%	14.4		%	14.0		%	14.0		%
Tier 1 leverage ratio	6.2		%	6.0		%	6.6		%	6.5		%	6.8		%
Supplementary leverage ratio ("SLR")	8.2		%	5.6		%	6.1		%	6.0		%	6.3		%
(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 June 30, 2020, $1.2 trillion at March 31, 2020, $1.5 trillion at Dec. 31, 2019 and $1.4 trillion at Sept. 30, 2019 and June 30, 2019.
(c)    Regulatory capital ratios for June 30, 2020 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 June 30, 2020, Dec. 31, 2019, Sept. 30, 2019 and June 30, 2019, was the Advanced Approaches, and for March 31, 2020 was the Standardized Approach for the CET1 and Tier 1 capital ratios and the Advanced Approaches for the Total capital ratio.
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)																2Q20 vs.										YTD20 vs.
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20		2Q19		YTD20			YTD19			YTD19
Revenue
Investment services fees:
Asset servicing fees	$	1,173		$	1,159		$	1,148		$	1,152		$	1,141		1	%	3	%	$	2,332		$	2,263		3	%
Clearing services fees	431			470			421			419			410			(8	)	5		901			808			12
Issuer services fees	277			263			264			324			291			5		(5	)	540			542			—
Treasury services fees	144			149			147			140			140			(3	)	3		293			272			8
Total investment services fees	2,025			2,041			1,980			2,035			1,982			(1	)	2		4,066			3,885			5
Investment management and performance fees	786			862			883			832			833			(9	)	(6	)	1,648			1,674			(2	)
Foreign exchange and other trading revenue	166			319			168			150			166			(48	)	—		485			336			44
Financing-related fees	58			59			46			49			50			(2	)	16		117			101			16
Distribution and servicing	27			31			34			33			31			(13	)	(13	)	58			62			(6	)
Investment and other income	105			11			860			30			43			N/M		N/M		116			78			N/M
Total fee revenue	3,167			3,323			3,971			3,129			3,105			(5	)	2		6,490			6,136			6
Net securities gains (losses)	9			9			(25		)	(1		)	7			N/M		N/M		18			8			N/M
Total fee and other revenue	3,176			3,332			3,946			3,128			3,112			(5	)	2		6,508			6,144			6
Income (loss) from consolidated investment management funds	54			(38		)	17			3			10			N/M		N/M		16			36			N/M
Net interest revenue	780			814			815			730			802			(4	)	(3	)	1,594			1,643			(3	)
Total revenue	4,010			4,108			4,778			3,861			3,924			(2	)	2		8,118			7,823			4
Provision for credit losses	143			169			(8		)	(16		)	(8		)	N/M		N/M		312			(1		)	N/M
Noninterest expense
Staff	1,464			1,482			1,639			1,479			1,421			(1	)	3		2,946			2,945			—
Software and equipment	345			326			326			309			304			6		13		671			587			14
Professional, legal and other purchased services	337			330			367			316			337			2		—		667			662			1
Net occupancy	137			135			151			138			138			1		(1	)	272			275			(1	)
Sub-custodian and clearing	120			105			119			111			115			14		4		225			220			2
Distribution and servicing	85			91			92			97			94			(7	)	(10	)	176			185			(5	)
Bank assessment charges	35			35			32			31			31			—		13		70			62			13
Business development	20			42			65			47			56			(52	)	(64	)	62			101			(39	)
Amortization of intangible assets	26			26			28			30			30			—		(13	)	52			59			(12	)
Other	117			140			145			32			121			(16	)	(3	)	257			250			3
Total noninterest expense	2,686			2,712			2,964			2,590			2,647			(1	)	1		5,398			5,346			1
Income before income taxes	1,181			1,227			1,822			1,287			1,285			(4	)	(8	)	2,408			2,478			(3	)
Provision for income taxes	216			265			373			246			264			(18	)	(18	)	481			501			(4	)
Net income	965			962			1,449			1,041			1,021			—		(5	)	1,927			1,977			(3	)
Net (income) loss attributable to noncontrolling interests	(15		)	18			(9		)	(3		)	(4		)	N/M		N/M		3			(14		)	N/M
Preferred stock dividends	(49		)	(36		)	(49		)	(36		)	(48		)	N/M		N/M		(85		)	(84		)	1
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	901		$	944		$	1,391		$	1,002		$	969		(5	)%	(7	)%	$	1,845		$	1,879		(2	)%
Average common shares and equivalents outstanding: Basic	889,020			894,122			911,324			933,264			951,281			(1	)%	(7	)%	891,642			956,887			(7	)%
Diluted	890,561			896,689			914,739			935,677			953,928			(1	)%	(7	)%	893,603			959,957			(7	)%
Earnings per common share: Basic	$	1.01		$	1.05		$	1.52		$	1.07		$	1.01		(4	)%	—	%	$	2.06		$	1.95		6	%
Diluted	$	1.01		$	1.05		$	1.52		$	1.07		$	1.01		(4	)%	—	%	$	2.06		$	1.95		6	%
N/M - Not meaningful.

4

THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
	2020						2019
(in millions)	June 30			March 31			Dec. 31			Sept. 30			June 30
Assets
Cash and due from banks	$	4,776		$	5,091		$	4,830		$	6,718		$	5,556
Interest-bearing deposits with the Federal Reserve and other central banks	112,728			146,535			95,042			73,811			69,700
Interest-bearing deposits with banks	18,045			22,672			14,811			15,417			15,491
Federal funds sold and securities purchased under resale agreements	36,638			27,363			30,182			43,723			61,201
Securities	154,682			139,273			123,033			122,340			120,142
Trading assets	14,150			12,918			13,571			10,180			8,629
Loans	55,397			62,368			54,953			54,881			52,396
Allowance for loan losses	(302		)	(140		)	(122		)	(127		)	(146		)
Net loans	55,095			62,228			54,831			54,754			52,250
Premises and equipment	3,598			3,514			3,625			3,149			2,970
Accrued interest receivable	540			576			624			596			658
Goodwill	17,253			17,240			17,386			17,248			17,337
Intangible assets	3,045			3,070			3,107			3,124			3,160
Other assets	21,306			27,446			20,221			21,727			23,737
Subtotal assets of operations	441,856			467,926			381,263			372,787			380,831
Assets of consolidated investment management funds, at fair value	460			229			245			381			337
Total assets	$	442,316		$	468,155		$	381,508		$	373,168		$	381,168
Liabilities
Deposits	$	305,470		$	336,717		$	259,466		$	249,660		$	252,877
Federal funds purchased and securities sold under repurchase agreements	14,512			13,128			11,401			11,796			11,757
Trading liabilities	5,595			6,625			4,841			4,756			3,768
Payables to customers and broker-dealers	25,012			24,016			18,758			18,364			18,946
Commercial paper	665			1,121			3,959			3,538			8,894
Other borrowed funds	1,628			1,544			599			820			1,921
Accrued taxes and other expenses	5,029			4,705			5,642			5,081			5,045
Other liabilities	12,869			11,425			7,612			9,796			7,916
Long-term debt	27,566			27,494			27,501			27,872			28,203
Subtotal liabilities of operations	398,346			426,775			339,779			331,683			339,327
Liabilities of consolidated investment management funds, at fair value	4			1			1			15			6
Total liabilities	398,350			426,776			339,780			331,698			339,333
Temporary equity
Redeemable noncontrolling interests	157			140			143			147			136
Permanent equity
Preferred stock	4,532			3,542			3,542			3,542			3,542
Common stock	14			14			14			14			14
Additional paid-in capital	27,702			27,644			27,515			27,471			27,406
Retained earnings	33,224			32,601			31,894			30,789			30,081
Accumulated other comprehensive loss, net of tax	(1,943		)	(2,827		)	(2,638		)	(2,893		)	(2,688		)
Less: Treasury stock, at cost	(19,832		)	(19,829		)	(18,844		)	(17,803		)	(16,822		)
Total The Bank of New York Mellon Corporation shareholders’ equity	43,697			41,145			41,483			41,120			41,533
Nonredeemable noncontrolling interests of consolidated investment management funds	112			94			102			203			166
Total permanent equity	43,809			41,239			41,585			41,323			41,699
Total liabilities, temporary equity and permanent equity	$	442,316		$	468,155		$	381,508		$	373,168		$	381,168

5

THE BANK OF NEW YORK MELLON CORPORATION
FEE AND OTHER REVENUE
																2Q20 vs.										YTD20 vs.
(dollars in millions)	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20		2Q19		YTD20			YTD19			YTD19
Investment services fees:
Asset servicing fees (a)	$	1,117		$	1,108		$	1,104		$	1,109		$	1,097		1	%	2	%	$	2,225		$	2,171		2	%
Securities lending revenue	56			51			44			43			44			10		27		107			92			16
Clearing services fees (b)	431			470			421			419			410			(8	)	5		901			808			12
Issuer services fees	277			263			264			324			291			5		(5	)	540			542			—
Treasury services fees	144			149			147			140			140			(3	)	3		293			272			8
Total investment services fees	2,025			2,041			1,980			2,035			1,982			(1	)	2		4,066			3,885			5
Investment management and performance fees (c)
Investment management fees	781			812			835			830			831			(4	)	(6	)	1,593			1,641			(3	)
Performance fees	5			50			48			2			2			N/M		N/M		55			33			67
Total investment management and performance fees (d)	786			862			883			832			833			(9	)	(6	)	1,648			1,674			(2	)
Foreign exchange and other trading revenue:
Foreign exchange	174			253			138			129			150			(31	)	16		427			310			38
Other trading revenue	(8		)	66			30			21			16			N/M		N/M		58			26			N/M
Total foreign exchange and other trading revenue	166			319			168			150			166			(48	)	—		485			336			44
Financing-related fees	58			59			46			49			50			(2	)	16		117			101			16
Distribution and servicing	27			31			34			33			31			(13	)	(13	)	58			62			(6	)
Investment and other income:
Corporate/bank-owned life insurance	36			36			43			33			32			N/M		N/M		72			62			N/M
Expense reimbursements from joint venture	19			21			20			21			19			N/M		N/M		40			38			N/M
Asset-related gains	3			4			815			2			1			N/M		N/M		7			2			N/M
Seed capital gains (losses) (c)	23			(31		)	4			—			8			N/M		N/M		(8		)	10			N/M
Other income (loss)	24			(19		)	(22		)	(26		)	(17		)	N/M		N/M		5			(34		)	N/M
Total investment and other income (c)	105			11			860			30			43			N/M		N/M		116			78			N/M
Total fee revenue	3,167			3,323			3,971			3,129			3,105			(5	)	2		6,490			6,136			6
Net securities gains (losses)	9			9			(25		)	(1		)	7			N/M		N/M		18			8			N/M
Total fee and other revenue	$	3,176		$	3,332		$	3,946		$	3,128		$	3,112		(5	)%	2	%	$	6,508		$	6,144		6	%
(a)    Asset servicing fees include the fees from the Clearance and Collateral Management business.
(b)    Clearing services fees are almost entirely earned by our Pershing business.
(c)    Excludes seed capital gains related to consolidated investment management funds, which are reflected in operations of consolidated investment management funds.
(d)    On a constant currency basis (Non-GAAP), investment management and performance fees decreased 5% compared with 2Q19. 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
	2Q20				1Q20				4Q19				3Q19					2Q19
	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	$	94,229	(0.03	)%	$	80,403	0.39	%	$	61,627	0.60	%	$	60,030	0.67	%		$	61,756	0.72	%
Interest-bearing deposits with banks (primarily foreign banks)	21,093		0.76		17,081		1.37		15,788		1.63		15,324		1.89			13,666		1.87
Federal funds sold and securities purchased under resale agreements (a)	30,265		0.82		34,109		4.67		38,846		4.62		40,816		6.42			38,038		5.99
Margin loans	12,791		1.28		12,984		2.69		11,609		3.25		10,303		4.02			10,920		4.36
Non-margin loans:
Domestic offices	31,185		2.21		31,720		3.02		29,690		3.36		29,285		2.75		(b)	29,492		3.86
Foreign offices	12,743		1.84		11,170		2.55		11,418		2.70		11,247		2.97			9,961		3.29
Total non-margin loans	43,928		2.10		42,890		2.89		41,108		3.18		40,532		2.81		(b)	39,453		3.71
Securities:
U.S. government obligations	27,901		1.52		23,175		1.87		18,444		2.08		19,315		2.11			18,870		2.19
U.S. government agency obligations	74,583		1.92		69,046		2.32		67,494		2.36		67,235		2.49			66,445		2.58
State and political subdivisions (c)	1,025		2.98		1,033		3.06		1,134		3.03		1,217		3.05			1,735		2.89
Other securities (c)	45,511		0.82		36,375		0.95		35,242		1.64		33,729		1.75			30,770		2.04
Trading securities (c)	6,236		1.13		6,840		2.36		6,695		2.41		5,653		2.80			5,764		2.72
Total securities (c)	155,256		1.50		136,469		1.88		129,009		2.13		127,149		2.25			123,584		2.40
Total interest-earning assets (c)	$	357,562	1.06	%	$	323,936	1.95	%	$	297,987	2.30	%	$	294,154	2.63	%	(b)	$	287,417	2.74	%
Noninterest-earning assets	57,797				61,342				56,354				56,525					54,967
Total assets	$	415,359			$	385,278			$	354,341			$	350,679				$	342,384
Liabilities and equity
Interest-bearing liabilities:
Interest-bearing deposits:
Domestic offices	$	102,135	0.06	%	$	99,915	0.69	%	$	87,162	0.98	%	$	82,663	1.28	%		$	74,180	1.36	%
Foreign offices	108,508		(0.12	)	97,717		0.29		95,262		0.49		94,738		0.71			93,365		0.78
Total interest-bearing deposits	210,643		(0.03	)	197,632		0.49		182,424		0.73		177,401		0.98			167,545		1.04
Federal funds purchased and securities sold under repurchase agreements (a)	14,209		0.03		13,919		7.96		12,668		9.11		13,432		13.08			11,809		12.64
Trading liabilities	1,974		0.39		1,626		1.61		1,504		2.25		1,371		2.33			1,735		2.47
Other borrowed funds	2,272		1.30		719		2.27		709		2.83		1,148		3.24			2,455		3.36
Commercial paper	191		1.02		1,581		1.56		1,792		1.66		3,796		2.26			2,957		2.43
Payables to customers and broker-dealers	18,742		(0.01	)	16,386		0.73		15,178		1.07		15,440		1.52			15,666		1.76
Long-term debt	28,122		2.42		27,231		2.83		28,117		3.09		28,386		3.24			27,681		3.45
Total interest-bearing liabilities	$	276,153	0.24	%	$	259,094	1.17	%	$	242,392	1.48	%	$	240,974	1.99	%		$	229,848	2.03	%
Total noninterest-bearing deposits	72,411				60,577				49,632				49,027					52,956
Other noninterest-bearing liabilities	24,121				24,229				20,681				19,280					18,362
Total The Bank of New York Mellon Corporation shareholders’ equity	42,486				41,206				41,384				41,139					41,029
Noncontrolling interests	188				172				252				259					189
Total liabilities and equity	$	415,359			$	385,278			$	354,341			$	350,679				$	342,384
Net interest margin			0.88	%			1.01	%			1.09	%			0.99	%	(b)			1.12	%
Net interest margin (FTE) – Non-GAAP (d)			0.88	%			1.01	%			1.09	%			1.00	%	(b)			1.12	%
(a)    Includes the average impact of offsetting under enforceable netting agreements of approximately $67 billion for 2Q20, $80 billion for 1Q20, $60 billion for 4Q19, $68 billion for 3Q19 and $51 billion for 2Q19. 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 0.26% for 2Q20, 1.39% for 1Q20, 1.82% for 4Q19, 2.42% for 3Q19 and 2.57% for 2Q19.  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 0.00% for 2Q20, 1.18% for 1Q20, 1.59% for 4Q19, 2.17% for 3Q19 and 2.39% for 2Q19. 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
	2020							2019
(dollars in millions)	June 30				March 31			Dec. 31			Sept. 30			June 30
Consolidated regulatory capital ratios (a)
Standardized Approach:
CET1 capital	$	20,036			$	18,465		$	18,540		$	18,196		$	18,534
Tier 1 capital	24,487				21,933			21,996			21,677			22,015
Total capital	26,198				23,494			23,449			23,145			23,500
Risk-weighted assets	157,550				163,006			148,695			148,399			149,226
CET1 ratio	12.7		%		11.3		%	12.5		%	12.3		%	12.4		%
Tier 1 capital ratio	15.5				13.5			14.8			14.6			14.8
Total capital ratio	16.6				14.4			15.8			15.6			15.7
Advanced Approaches:
CET1 capital	$	20,036			$	18,465		$	18,540		$	18,196		$	18,534
Tier 1 capital	24,487				21,933			21,996			21,677			22,015
Total capital	25,948				23,281			23,233			22,921			23,300
Risk-weighted assets	159,191				162,561			160,898			164,172			166,570
CET1 ratio	12.6		%		11.4		%	11.5		%	11.1		%	11.1		%
Tier 1 capital ratio	15.4				13.5			13.7			13.2			13.2
Total capital ratio	16.3				14.3			14.4			14.0			14.0
Tier 1 leverage ratio	6.2		%		6.0		%	6.6		%	6.5		%	6.8		%
SLR:
Leverage exposure	$	297,281		(b)	$	392,807		$	362,452		$	359,023		$	350,747
SLR	8.2		%	(b)	5.6		%	6.1		%	6.0		%	6.3		%
Average liquidity coverage ratio	112		%		115		%	120		%	117		%	117		%
(a)    Regulatory capital ratios for June 30, 2020 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 June 30, 2020, Dec. 31, 2019, Sept. 30, 2019 and June 30, 2019, was the Advanced Approaches, and for March 31, 2020 was the Standardized Approach for the CET1 and Tier 1 capital ratios and the Advanced Approaches for the Total capital ratio.
(b)    Reflects the application of a new rule effective April 1, 2020 to exclude certain central bank placements as well as the temporary exclusion of U.S. Treasury securities from the leverage exposure used in the SLR calculation. The temporary exclusion of U.S. Treasury securities from the SLR’s leverage exposure increased our SLR by 40 basis points.

8

THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SERVICES BUSINESS
																2Q20 vs.										YTD20 vs.
(dollars in millions)	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20		2Q19		YTD20			YTD19			YTD19
Revenue:
Investment services fees:
Asset servicing fees (ex. securities lending revenue) (a)	$	1,113		$	1,101		$	1,098		$	1,099		$	1,086		1	%	2	%	$	2,214		$	2,153		3	%
Securities lending revenue	51			46			40			39			40			11		28		97			84			15
Clearing services fees (b)	431			470			421			419			411			(8	)	5		901			809			11
Issuer services fees	277			263			264			324			291			5		(5	)	540			542			—
Treasury services fees	144			149			147			139			140			(3	)	3		293			272			8
Total investment services fees	2,016			2,029			1,970			2,020			1,968			(1	)	2		4,045			3,860			5
Foreign exchange and other trading revenue	178			261			151			160			153			(32	)	16		439			310			42
Other (c)	145			146			115			116			112			(1	)	29		291			224			30
Total fee and other revenue	2,339			2,436			2,236			2,296			2,233			(4	)	5		4,775			4,394			9
Net interest revenue	768			806			778			761			783			(5	)	(2	)	1,574			1,587			(1	)
Total revenue	3,107			3,242			3,014			3,057			3,016			(4	)	3		6,349			5,981			6
Provision for credit losses	145			149			(5		)	(15		)	(4		)	N/M		N/M		294			4			N/M
Noninterest expense (ex. amortization of intangible assets)	1,971			1,969			2,160			1,952			1,943			—		1		3,940			3,904			1
Amortization of intangible assets	18			18			19			21			20			—		(10	)	36			40			(10	)
Total noninterest expense	1,989			1,987			2,179			1,973			1,963			—		1		3,976			3,944			1
Income before taxes	$	973		$	1,106		$	840		$	1,099		$	1,057		(12	)%	(8	)%	$	2,079		$	2,033		2	%
Pre-tax operating margin	31		%	34		%	28		%	36		%	35		%					33		%	34		%
Total revenue by line of business:																							��
Asset Servicing	$	1,463		$	1,531		$	1,411		$	1,411		$	1,397		(4	)%	5	%	$	2,994		$	2,812		6	%
Pershing	578			653			579			575			572			(11	)	1		1,231			1,133			9
Issuer Services	431			419			415			466			446			3		(3	)	850			842			1
Treasury Services	340			339			329			312			317			—		7		679			634			7
Clearance and Collateral Management	295			300			280			293			284			(2	)	4		595			560			6
Total revenue by line of business	$	3,107		$	3,242		$	3,014		$	3,057		$	3,016		(4	)%	3	%	$	6,349		$	5,981		6	%
(a)    Asset servicing fees include the fees from the Clearance and Collateral Management business.
(b)    Clearing services fees are almost entirely earned by our Pershing business.
(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
											2Q20 vs.								YTD20 vs.
(dollars in millions, unless otherwise noted)	2Q20		1Q20		4Q19		3Q19		2Q19		1Q20		2Q19		YTD20		YTD19		YTD19
Average loans	$	43,113	$	41,789	$	38,721	$	37,005	$	36,404	3	%	18	%	$	42,451	$	36,818	15	%
Average assets	$	335,288	$	304,089	$	278,098	$	269,926	$	264,781	10	%	27	%	$	319,689	$	260,432	23	%
Average deposits	$	268,467	$	242,187	$	215,388	$	208,044	$	201,146	11	%	33	%	$	255,327	$	198,131	29	%
AUC/A at period end (in trillions) (a)(b)	$	37.3	$	35.2	$	37.1	$	35.8	$	35.5	6	%	5	%
Market value of securities on loan at period end (in billions) (c)	$	384	$	389	$	378	$	362	$	369	(1	)%	4	%
Pershing
Net new assets (U.S. platform) (in billions)(d)	$	11	$	31	$	33	$	19	$	21	N/M		N/M
Average active clearing accounts (U.S. platform) (in thousands)	6,507		6,437		6,340		6,283		6,254		1	%	4	%
Average long-term mutual fund assets (U.S. platform)	$	547,579	$	549,206	$	573,475	$	547,522	$	532,384	—		3	%
Average investor margin loans (U.S. platform)	$	9,235	$	9,419	$	9,420	$	9,222	$	9,440	(2	)%	(2	)%
Clearance and Collateral Management
Average tri-party collateral management balances (in billions)	$	3,573	$	3,724	$	3,562	$	3,550	$	3,400	(4	)%	5	%
(a)    June 30, 2020 information is preliminary.
(b)    Includes the AUC/A of CIBC Mellon of $1.3 trillion at June 30, 2020, $1.2 trillion at March 31, 2020, $1.5 trillion at Dec. 31, 2019 and $1.4 trillion at Sept. 30, 2019 and June 30, 2019.
(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 June 30, 2020, $59 billion at March 31, 2020, $60 billion at Dec. 31, 2019, $66 billion at Sept. 30, 2019 and $64 billion at June 30, 2019.
(d)    Net new assets represents net flows of assets (e.g., net cash deposits and net securities transfers) in customer accounts in Pershing LLC, a U.S. broker-dealer.
N/M - Not meaningful.

10

THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT AND WEALTH MANAGEMENT BUSINESS (formerly Investment Management business)
																2Q20 vs.										YTD20 vs.
(dollars in millions)	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20		2Q19		YTD20			YTD19			YTD19
Revenue:
Investment management fees (a)	$	782		$	812		$	836		$	830		$	831		(4	)%	(6	)%	$	1,594		$	1,641		(3	)%
Performance fees	5			50			48			2			2			N/M		150		55			33			67
Investment management and performance fees (b)	787			862			884			832			833			(9	)	(6	)	1,649			1,674			(1	)
Distribution and servicing	34			43			44			45			44			(21	)	(23	)	77			89			(13	)
Other (a)	17			(59		)	(4		)	(39		)	(23		)	N/M		N/M		(42		)	(40		)	N/M
Total fee and other revenue (a)	838			846			924			838			854			(1	)	(2	)	1,684			1,723			(2	)
Net interest revenue	48			52			47			49			59			(8	)	(19	)	100			126			(21	)
Total revenue	886			898			971			887			913			(1	)	(3	)	1,784			1,849			(4	)
Provision for credit losses	7			9			—			—			(2		)	N/M		N/M		16			(1		)	N/M
Noninterest expense (ex. amortization of intangible assets)	650			687			722			582			646			(5	)	1		1,337			1,306			2
Amortization of intangible assets	8			8			9			10			9			—		(11	)	16			18			(11	)
Total noninterest expense	658			695			731			592			655			(5	)	—		1,353			1,324			2
Income before taxes	$	221		$	194		$	240		$	295		$	260		14	%	(15	)%	$	415		$	526		(21	)%
Pre-tax operating margin	25		%	22		%	25		%	33		%	29		%					23		%	28		%
Adjusted pre-tax operating margin – Non-GAAP (c)	28		%	24		%	27		%	37		%	32		%					26		%	32		%
Total revenue by line of business:
Investment Management (formerly Asset Management)	$	621		$	620		$	692		$	608		$	622		—	%	—	%	$	1,241		$	1,262		(2	)%
Wealth Management	265			278			279			279			291			(5	)	(9	)	543			587			(7	)
Total revenue by line of business	$	886		$	898		$	971		$	887		$	913		(1	)%	(3	)%	$	1,784		$	1,849		(4	)%
Average loans	$	11,791		$	12,124		$	12,022		$	12,013		$	12,205		(3	)%	(3	)%	$	11,958		$	12,271		(3	)%
Average assets	$	30,327		$	30,543		$	28,481		$	27,840		$	29,793		(1	)%	2	%	$	30,435		$	30,819		(1	)%
Average deposits	$	17,491		$	16,144		$	15,195		$	14,083		$	14,615		8	%	20	%	$	16,817		$	15,211		11	%
(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 decreased 4% compared with 2Q19. 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
																2Q20 vs.
(dollars in billions)	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20		2Q19
AUM by product type (a)(b)
Equity	$	141		$	120		$	154		$	147		$	152		18	%	(7	)%
Fixed income	224			211			224			211			209			6		7
Index	333			274			339			321			322			22		3
Liability-driven investments	752			705			728			742			709			7		6
Multi-asset and alternative investments	185			171			192			182			184			8		1
Cash	326			315			273			278			267			3		22
Total AUM by product type	$	1,961		$	1,796		$	1,910		$	1,881		$	1,843		9	%	6	%
Changes in AUM(a)(b)
Beginning balance of AUM	$	1,796		$	1,910		$	1,881		$	1,843		$	1,841
Net inflows (outflows):
Long-term strategies:
Equity	(2		)	(2		)	(6		)	(4		)	(2		)
Fixed income	4			—			5			2			(4		)
Liability-driven investments	(2		)	(5		)	(3		)	(4		)	1
Multi-asset and alternative investments	—			(1		)	3			(1		)	1
Total long-term active strategies (outflows)	—			(8		)	(1		)	(7		)	(4		)
Index	9			3			(5		)	(3		)	(22		)
Total long-term strategies inflows (outflows)	9			(5		)	(6		)	(10		)	(26		)
Short-term strategies:
Cash	11			43			(7		)	11			2
Total net inflows (outflows)	20			38			(13		)	1			(24		)
Net market impact	143			(91		)	(20		)	66			42
Net currency impact	2			(61		)	62			(29		)	(16		)
Ending balance of AUM	$	1,961		$	1,796		$	1,910		$	1,881		$	1,843		9	%	6	%
Wealth Management client assets (a)(c)	$	254		$	236		$	266		$	259		$	257		8	%	(1	)%
(a)    June 30, 2020 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)	2Q20			1Q20			4Q19				3Q19			2Q19			YTD20			YTD19
Fee revenue	$	29		$	21		$	817		(a)	$	(5	)	$	24		$	50		$	41
Net securities gains (losses)	9			9			(23		)		(1		)	7			18			8
Total fee and other revenue	38			30			794				(6		)	31			68			49
Net interest (expense)	(36		)	(44		)	(10		)		(80		)	(40		)	(80		)	(70		)
Total revenue (loss)	2			(14		)	784				(86		)	(9		)	(12		)	(21		)
Provision for credit losses	(9		)	11			(3		)		(1		)	(2		)	2			(4		)
Noninterest expense	39			30			54				25			29			69			78
(Loss) income before taxes	$	(28	)	$	(55	)	$	733			$	(110	)	$	(36	)	$	(83	)	$	(95	)
Average loans and leases	$	1,815		$	1,961		$	1,974			$	1,817		$	1,764		$	1,887		$	1,774
Average assets	$	49,744		$	50,646		$	47,762			$	52,913		$	47,810		$	50,194		$	48,041
(a)    Includes a gain on sale of an equity investment.

13

THE BANK OF NEW YORK MELLON CORPORATION
SECURITIES PORTFOLIO
(dollars in millions)	March 31, 2020			2Q20 change in unrealized gain (loss)			June 30, 2020					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		A1+/ A2 & SP-1+		Not rated
	Fair value
Agency RMBS	$	57,074		$	455		$	58,874	$	60,401		103	%	$	1,527			100	%	—	%	—	%	—	%	—	%	—	%
U.S. Treasury	24,825			(31		)	28,224		28,651			102		427				100		—		—		—		—		—
Sovereign debt/sovereign guaranteed	13,833			47			16,698		16,868			101		170				75		6		18		1		—		—
Agency commercial MBS	11,416			159			11,339		11,731			103		392				100		—		—		—		—		—
Foreign covered bonds	5,349			62			5,548		5,598			101		50				100		—		—		—		—		—
Supranational	4,339			27			5,434		5,484			101		50				100		—		—		—		—		—
U.S. government agencies	3,346			29			4,984		5,056			101		72				100		—		—		—		—		—
CLOs	4,098			149			4,526		4,432			98		(94		)		99		—		—		—		—		1
Foreign government agencies	2,761			14			3,536		3,575			101		39				95		5		—		—		—		—
Commercial paper and certificates of deposits (c)(d)	3,465			5			3,386		3,392			100		6				—		—		—		—		100		—
Other asset-backed securities	2,220			56			2,724		2,743			101		19				99		—		1		—		—		—
Non-agency commercial MBS	2,446			140			2,517		2,602			103		85				100		—		—		—		—		—
Non-agency RMBS (e)	1,548			66			1,537		1,672			109		135				50		8		2		24		—		16
State and political subdivisions	1,001			12			1,166		1,196			103		30				76		22		—		—		1		1
Corporate bonds	818			28			789		831			105		42				19		68		13		—		—		—
Other	1			—			1		1			100		—				—		—		—		—		—		100
Total securities	$	138,540	(f)	$	1,218		$	151,283	$	154,233	(f)(g)	102	%	$	2,950		(f)(h)	94	%	2	%	2	%	—	%	2	%	—	%
(a)    Amortized cost reflects historical impairments.
(b)    Represents ratings by S&P, or the equivalent.
(c)    Includes amounts purchased from affiliated money market funds of $2,145 million at March 31, 2020 and $1,853 million at June 30, 2020.
(d)    Includes amounts funded by borrowings from the Federal Reserve Bank under its Money Market Mutual Fund Liquidity Facility (“MMLF”) program of $651 million at March 31, 2020 and $1,539 million at June 30, 2020.
(e)    Includes RMBS that were included in the former Grantor Trust of $535 million at March 31, 2020 and $538 million at June 30, 2020.
(f)    Includes net unrealized losses on derivatives hedging securities available-for-sale (including terminated hedges) of $1,846 million at March 31, 2020 and $1,817 million at June 30, 2020.
(g)    At June 30, 2020, the securities portfolio, including the impact of interest rate swap hedges, is 74% fixed rate and 26% floating rate.
(h)    Includes unrealized gains of $1,582 million at June 30, 2020 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
	2020								2019
(dollars in millions)	June 30				March 31				Dec. 31			Sept. 30			June 30
Allowance for credit losses - beginning of period:
Allowance for loan losses	$	140			$	122			$	127		$	146		$	146
Allowance for lending-related commitments	148				94				97			95			102
Allowance for other financial instruments	41			(a)	N/A				N/A			N/A			N/A
Allowance for credit losses - beginning of period	$	329			$	216			$	224		$	241		$	248
Impact of adopting ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, effective Jan. 1, 2020	N/A				(55		)	(b)	N/A			N/A			N/A
Net recoveries (charge-offs):
Charge-offs	—				(1		)		(1		)	(1		)	(1		)
Recoveries	3				—				1			—			2
Total net recoveries (charge-offs)	3				(1		)		—			(1		)	1
Provision for credit losses	143			(b)	169			(b)	(8		)	(16		)	(8		)
Allowance for credit losses - end of period	$	475			$	329			$	216		$	224		$	241
Allowance for credit losses - end of period:
Allowance for loan losses	$	302			$	140			$	122		$	127		$	146
Allowance for lending-related commitments	152				148				94			97			95
Allowance for other financial instruments	21			(a)	41			(a)	N/A			N/A			N/A
Allowance for credit losses - end of period	$	475			$	329			$	216		$	224		$	241
Allowance for loan losses as a percentage of total loans	0.55		%		0.22		%		0.22		%	0.23		%	0.28		%
Nonperforming assets	$	88			$	88			$	89		$	88		$	186		(c)
(a)    Includes allowance for credit losses on federal funds sold and securities purchased under resale agreements, available-for-sale securities, accounts receivable, cash and due from banks and interest-bearing deposits with banks.
(b)    Includes all instruments within the scope of ASU 2016-13,Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments.
(c)    Includes nonperforming loans to a California utility company that filed for bankruptcy that were sold in 3Q19.
N/A - Not applicable.

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. We believe 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 adjusted pre-tax operating margin – Non-GAAP, which is the pre-tax operating margin for the Investment and Wealth Management business net of distribution and servicing expense that was passed to third parties who distribute or service our managed funds. We believe that this measure is useful when evaluating the performance of the Investment and Wealth 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)	2Q20			1Q20			4Q19			3Q19			2Q19			YTD20			YTD19
Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP	$	901		$	944		$	1,391		$	1,002		$	969		$	1,845		$	1,879
Add: Amortization of intangible assets	26			26			28			30			30			52			59
Less: Tax impact of amortization of intangible assets	6			6			7			7			7			12			14
Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets – Non-GAAP	$	921		$	964		$	1,412		$	1,025		$	992		$	1,885		$	1,924
Average common shareholders’ equity	$	38,476		$	37,664		$	37,842		$	37,597		$	37,487		$	38,070		$	37,287
Less: Average goodwill	17,243			17,311			17,332			17,267			17,343			17,277			17,360
Average intangible assets	3,058			3,089			3,119			3,141			3,178			3,073			3,193
Add: Deferred tax liability – tax deductible goodwill	1,119			1,109			1,098			1,103			1,094			1,119			1,094
Deferred tax liability – intangible assets	664			666			670			679			687			664			687
Average tangible common shareholders’ equity – Non-GAAP	$	19,958		$	19,039		$	19,159		$	18,971		$	18,747		$	19,503		$	18,515
Return on common equity – GAAP	9.4		%	10.1		%	14.6		%	10.6		%	10.4		%	9.7		%	10.2		%
Return on tangible common equity – Non-GAAP	18.5		%	20.4		%	29.3		%	21.4		%	21.2		%	19.4		%	20.9		%

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	2020						2019
(dollars in millions, except common shares)	June 30			March 31			Dec. 31			Sept. 30			June 30
BNY Mellon shareholders’ equity at period end – GAAP	$	43,697		$	41,145		$	41,483		$	41,120		$	41,533
Less: Preferred stock	4,532			3,542			3,542			3,542			3,542
BNY Mellon common shareholders’ equity at period end – GAAP	39,165			37,603			37,941			37,578			37,991
Less: Goodwill	17,253			17,240			17,386			17,248			17,337
Intangible assets	3,045			3,070			3,107			3,124			3,160
Add: Deferred tax liability – tax deductible goodwill	1,119			1,109			1,098			1,103			1,094
Deferred tax liability – intangible assets	664			666			670			679			687
BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP	$	20,650		$	19,068		$	19,216		$	18,988		$	19,275
Period-end common shares outstanding (in thousands)	885,862			885,443			900,683			922,199			942,662
Book value per common share – GAAP	$	44.21		$	42.47		$	42.12		$	40.75		$	40.30
Tangible book value per common share – Non-GAAP	$	23.31		$	21.53		$	21.33		$	20.59		$	20.45
Net interest margin reconciliation
(dollars in millions)	2Q20			1Q20			4Q19			3Q19			2Q19
Net interest revenue – GAAP	$	780		$	814		$	815		$	730		$	802
Add: Tax equivalent adjustment	2			2			2			3			4
Net interest revenue (FTE) – Non-GAAP	$	782		$	816		$	817		$	733		$	806
Average interest-earning assets	$	357,562		$	323,936		$	297,987		$	294,154		$	287,417
Net interest margin – GAAP (a)	0.88		%	1.01		%	1.09		%	0.99		%	1.12		%
Net interest margin (FTE) – Non-GAAP (a)	0.88		%	1.01		%	1.09		%	1.00		%	1.12		%
(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 and Wealth Management business
(dollars in millions)	2Q20			1Q20			4Q19			3Q19			2Q19			YTD20			YTD19
Income before income taxes – GAAP	$	221		$	194		$	240		$	295		$	260		$	415		$	526
Total revenue – GAAP	$	886		$	898		$	971		$	887		$	913		$	1,784		$	1,849
Less: Distribution and servicing expense	86			91			93			98			94			177			185
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP	$	800		$	807		$	878		$	789		$	819		$	1,607		$	1,664
Pre-tax operating margin – GAAP (a)	25		%	22		%	25		%	33		%	29		%	23		%	28		%
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a)	28		%	24		%	27		%	37		%	32		%	26		%	32		%
(a)    Income before income taxes divided by total revenue.
Constant currency reconciliations							2Q20 vs.
(dollars in millions)	2Q20			2Q19			2Q19
Consolidated:
Investment management and performance fees – GAAP	$	786		$	833		(6		)%
Impact of changes in foreign currency exchange rates	—			(9		)
Adjusted investment management and performance fees – Non-GAAP	$	786		$	824		(5		)%
Investment and Wealth Management business:
Investment management and performance fees – GAAP	$	787		$	833		(6		)%
Impact of changes in foreign currency exchange rates	—			(9		)
Adjusted investment management and performance fees – Non-GAAP	$	787		$	824		(4		)%

18