The Bank of New York Mellon Corporation (BK) 8-K Results of Operations and Financial Condition

THE BANK OF NEW YORK MELLON CORPORATION

Quarterly Financial Trends

October 17, 2014

Notes:

The following transactions/changes have impacted the reporting of our results:

In the first quarter of 2014, prior periods were restated to reflect the retrospective application of adopting new accounting guidance related to our investments in qualified affordable housing projects (ASU 2014-01).

In the first quarter of 2014, results of Newton's private client business were reclassified from the Investment Management business to the Other segment. Newton's private client business was sold in September 2013.

Restructuring charges in the second quarter of 2014 represent corporate initiatives and were recorded in the Other segment. In the fourth quarter of 2013, restructuring charges were recorded in the businesses. Prior to the fourth quarter of 2013, all restructuring charges were reported in the Other segment.

In the first quarter of 2013, incentive expense related to restricted stock and certain corporate overhead charges were allocated to Investment Management and Investment Services businesses which were previously included in the Other segment. All prior periods were restated to reflect these changes.

In the first quarter of 2012, we reclassified the results of the Shareowner Services business from the Investment Services business to the Other segment. The reclassification did not impact the consolidated results. All prior periods have been restated.

The following items have impacted the comparability of our results:

The third quarter of 2014 includes gains related to the sales of the investment in Wing Hang and One Wall Street building.

The third quarter of 2014 includes charges related to litigation and restructuring.

The second quarter of 2014 includes charges related to investment management funds and severance.

The fourth quarter of 2013 includes a loss related to an equity investment.

The third quarter of 2013 includes a benefit related to the U.S. Tax Court's partial reconsideration of a tax decision disallowing certain foreign tax credits.

The second quarter of 2013 includes a gain related to an equity investment.

The first quarter of 2013 includes a tax charge related to the disallowance of certain foreign tax credits.

The second quarter of 2012 includes a charge related to the settlement of the Sigma class action lawsuit.

All of these items are detailed in the trends that follow.

Certain immaterial reclassifications/revisions have been made to prior periods to place them on a basis comparable with the current period's presentation.

Average Assets:

In businesses where average deposits are greater than average loans, average assets include an allocation of investment securities equal to the difference.

Return on Common and Tangible Common Equity:

Quarterly return on common and tangible common equity ratios are annualized.

Non-GAAP Measures:

Certain Non-GAAP measures are included in the following schedules. These measures are used by management to monitor financial performance, both on a company-wide and on a business basis. These Non-GAAP measures impact certain revenue/expense categories, percentages and ratios by the exclusion and/or adjustment of items listed above and described in footnotes. For further information, see 'Supplemental information -- Explanation of GAAP and Non-GAAP Financial Measures' in The Bank of New York Mellon Corporation's Quarterly Earnings Release dated October 17, 2014, for the third quarter of 2014, furnished as an exhibit to the Current Report on Form 8-K to which these Quarterly Financial Trends are furnished as an exhibit (the "Form 8-K"). Summations may not equal due to rounding. As a result of our rounding convention and reclassifications noted above, differences may exist between the business trends data versus business data in the Form 10-K for the year ended December 31, 2013 or other reports filed with the SEC.

THE BANK OF NEW YORK MELLON CORPORATION

11 Quarter Trend

	2012												2013												2014
(dollar amounts in millions unless otherwise noted)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr
Revenue:
Investment services fees
Asset servicing	$	943		$	950		$	942		$	945		$	969		$	988		$	964		$	984		$	1,009		$	1,022		$	1,025
Issuer services	251			275			311			215			237			294			322			237			229			231			315
Clearing services	303			309			287			294			304			321			315			324			325			326			337
Treasury services	136			134			138			141			141			139			137			137			136			141			142
Total investment services fees	1,633			1,668			1,678			1,595			1,651			1,742			1,738			1,682			1,699			1,720			1,819
Investment management and performance fees	745			797			779			853			822			848			821			904			843			883			881
Foreign exchange & other trading revenue	191			180			182			139			161			207			160			146			136			130			153
Distribution and servicing	46			46			48			52			49			45			43			43			43			43			44
Financing-related fees	44			37			46			45			41			44			44			43			38			44			44
Investment and other income (a)	152			61			137			132			88			285			151			(43		)	102			142			890
Total fee revenue (a)	2,811			2,789			2,870			2,816			2,812			3,171			2,957			2,775			2,861			2,962			3,831
Net securities gains (losses)	40			50			22			50			48			32			22			39			22			18			20
Total fee and other revenue (a)	2,851			2,839			2,892			2,866			2,860			3,203			2,979			2,814			2,883			2,980			3,851
Income (loss) of consolidated investment management funds	43			57			47			42			50			65			32			36			36			46			39
Net interest revenue	765			734			749			725			719			757			772			761			728			719			721
Total revenue (a)	3,659			3,630			3,688			3,633			3,629			4,025			3,783			3,611			3,647			3,745			4,611
Provision for credit losses	5			(19		)	(5		)	(61		)	(24		)	(19		)	2			6			(18		)	(12		)	(19		)
Noninterest expenses	2,551			2,572			2,584			2,683			2,703			2,716			2,682			2,793			2,676			2,749			2,673
Amortization of intangible assets	96			97			95			96			86			93			81			82			75			75			75
Merger & integration, litigation and restructuring charges	109			378			26			46			39			13			16			2			(12		)	122			220
Total noninterest expense	2,756			3,047			2,705			2,825			2,828			2,822			2,779			2,877			2,739			2,946			2,968
Income (loss) from continuing operations before taxes (a)	898			602			988			869			825			1,222			1,002			728			926			811			1,662
Provision for income taxes	269			106			239			228			1,062			339			19			172			232			217			556
Net income (loss) from continuing operations (a)	629			496			749			641			(237		)	883			983			556			694			594			1,106
Net income (loss) attributable to noncontrolling interest	(12		)	(30		)	(25		)	(11		)	(16		)	(40		)	(8		)	(17		)	(20		)	(17		)	(23		)
Preferred stock dividends	—			—			(5		)	(13		)	(13		)	(12		)	(13		)	(26		)	(13		)	(23		)	(13		)
Net income (loss) applicable to common shareholders of The Bank of New York Mellon Corporation (a)	617			466			719			617			(266		)	831			962			513			661			554			$	1,070
Earnings Per Share (a)(b)	$	0.51		$	0.39		$	0.61		$	0.52		$	(0.23	)	$	0.71		$	0.82		$	0.44		$	0.57		$	0.48		$	0.93
Assets under management at period-end (in billions) (c)	$	1,302		$	1,293		$	1,353		$	1,380		$	1,423		$	1,427		$	1,532		$	1,583		$	1,620		$	1,636		$	1,646		(d)
Assets under custody and/or administration at period-end (in trillions) (e)	$	25.7		$	25.2		$	26.4		$	26.3		$	26.3		$	26.2		$	27.4		$	27.6		$	27.9		$	28.5		$	28.3		(d)
Market value of securities on loan at period-end (in billions) (f)	$	256		$	267		$	251		$	237		$	244		$	255		$	255		$	235		$	264		$	280		$	282
Pre-tax operating margin - GAAP	24		%	16		%	27		%	24		%	23		%	30		%	26		%	20		%	25		%	22		%	36		%
Non-GAAP (g)	30		%	29		%	30		%	28		%	26		%	32		%	29		%	22		%	27		%	30		%	29		%
Return on common equity (annualized) - GAAP	7.4		%	5.5		%	8.3		%	7.1		%	N/M			9.7		%	11.1		%	5.7		%	7.4		%	6.1		%	11.6		%
Return on tangible common equity (annualized) - Non-GAAP	21.0		%	15.7		%	22.1		%	18.8		%	N/M			25.0		%	28.3		%	14.3		%	17.6		%	14.5		%	26.2		%
Percent of non-US fee and net interest revenue - (h)	37		%	37		%	37		%	36		%	35		%	36		%	38		%	39		%	37		%	38		%	43		%

(a) In the 1st quarter 2014, prior periods were restated to reflect the retrospective application of adopting new accounting guidance related to our investments in qualified affordable housing projects (ASU 2014-01). See page 23 of the Quarterly Earnings Release dated October 17, 2014 attached as an exhibit to the Form 8-K.

(b) The 2nd quarter 2012 includes $0.18 of litigation expense. The 1st quarter 2013 includes a $0.73 charge related to the disallowance of certain foreign tax credits. The 2nd quarter 2013 includes a $0.09 gain related to an equity investment. The 3rd quarter 2013 includes a $0.22 benefit related to the U.S. Tax Court's partial reconsideration of a tax decision disallowing certain foreign tax credits. The 4th quarter 2013 includes a $0.10 loss related to an equity investment. The 2nd quarter 2014 includes a $0.14 charge related to severance and certain investment management funds. The 3rd quarter 2014 includes a $0.27 gain related to the sale of an investment in Wing Hang, $0.18 related to a gain on the sale of One Wall Street building and a $0.16 charge related to litigation and restructuring.

(c) Excludes securities lending cash management assets and assets managed in the Investment Services business. Also excludes assets under management related to Newton’s private client business that was sold in September 2013.

(d) Preliminary.

(e) Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.2 trillion at March 31, 2012, June 30, 2012 and Sept. 30, 2012, $1.1 trillion at Dec. 31, 2012, $1.2 trillion at March 31, 2013, $1.1 trillion at June 30, 2013, and $1.2 trillion at Sept. 30, 2013, Dec. 31, 2013, March 31, 2014, June 30, 2014 and Sept. 30, 2014.

(f) Represents the total amount of securities on loan managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent, beginning in the fourth quarter of 2013, on behalf of CIBC Mellon clients, which totaled $62 billion at Dec. 31, 2013, $66 billion at March 31, 2014, $64 billion at June 30, 2014 and $65 billion at Sept. 30, 2014.

(g)Non-GAAP excludes M&I, litigation and restructuring charges, a gain on the sale of our investment in Wing Hang, the gain on the sale of the One Wall Street building, a charge (recovery) related to investment management funds, net of incentives and the benefit related to the disallowance of certain foreign tax credits, if applicable. See "Supplemental information - Explanation of GAAP and Non GAAP financial measures" beginning on page 24 of the Quarterly Earnings Release.

(h) Includes fee revenue, net interest revenue and income from consolidated investment management funds, net of net income attributable to noncontrolling interests.

Note: See pages 3 through 6 for additional details of revenue/expense items impacting consolidated results.

N/M - Not meaningful.

THE BANK OF NEW YORK MELLON CORPORATION

FEE AND OTHER REVENUE - 11 Quarter Trend

	2012												2013												2014
(dollar amounts in millions unless otherwise noted)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr
Investment services fees:
Asset servicing	$	894		$	891		$	893		$	904		$	930		$	938		$	929		$	953		$	971		$	976		$	988
Securities lending	49			59			49			41			39			50			35			31			38			46			37
Issuer services	251			275			311			215			237			294			322			237			229			231			315
Clearing services	303			309			287			294			304			321			315			324			325			326			337
Treasury services	136			134			138			141			141			139			137			137			136			141			142
Total investment services fees	1,633			1,668			1,678			1,595			1,651			1,742			1,738			1,682			1,699			1,720			1,819
Investment management and performance fees	745			797			779			853			822			848			821			904			843			883			881
Foreign exchange and other trading revenue	191			180			182			139			161			207			160			146			136			130			153
Distribution and servicing	46			46			48			52			49			45			43			43			43			43			44
Financing-related fees	44			37			46			45			41			44			44			43			38			44			44
Investment and other income	152			61			137			132			88			285			151			(43		)	102			142			890
Total fee revenue	$	2,811		$	2,789		$	2,870		$	2,816		$	2,812		$	3,171		$	2,957		$	2,775		$	2,861		$	2,962		$	3,831
Net securities gains (losses)	40			50			22			50			48			32			22			39			22			18			20
Total fee and other revenue - Non-GAAP	$	2,851		$	2,839		$	2,892		$	2,866		$	2,860		$	3,203		$	2,979		$	2,814		$	2,883		$	2,980		$	3,851
Fee and other revenue as a percentage of total revenue - excluding net securities gains	78		%	78		%	78		%	78		%	79		%	79		%	79		%	78		%	79		%	79		%	83		%
Assets under management at period-end (in billions) (a)	$	1,302		$	1,293		$	1,353		$	1,380		$	1,423		$	1,427		$	1,532		$	1,583		$	1,620		$	1,636		$	1,646		(b)
Assets under custody and/or administration at period-end (in trillions) (c)	$	25.7		$	25.2		$	26.4		$	26.3		$	26.3		$	26.2		$	27.4		$	27.6		$	27.9		$	28.5		$	28.3		(b)
Market value of securities on loan at period-end (in billions) (d)	$	256		$	267		$	251		$	237		$	244		$	255		$	255		$	235		$	264		$	280		$	282
S&P 500 Index - period-end	1408			1362			1441			1426			1569			1606			1682			1848			1872			1960			1972
S&P 500 Index - daily average	1349			1350			1401			1418			1514			1609			1675			1769			1835			1900			1976
(a)    Excludes securities lending cash management assets and assets managed in the Investment Services business. Also excludes assets under management related to Newton's private client business that was sold in September 2013.
(b)    Preliminary.
(c)    Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.2 trillion at March 31, 2012, June 30, 2012 and Sept. 30, 2012, $1.1 trillion at Dec. 31, 2012, $1.2 trillion at March 31, 2013, $1.1 trillion at June 30, 2013 and $1.2 trillion at Sept. 30, 2013, Dec. 31, 2013, March 31, 2014, June 30, 2014 and Sept. 30, 2014.
(d)    Represents the total amount of securities on loan managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent, beginning in the fourth quarter of 2013, on behalf of CIBC Mellon clients, which totaled $62 billion at Dec. 31, 2013, $66 billion at March 31, 2014, $64 billion at June 30, 2014 and $65 billion at Sept. 30, 2014.

THE BANK OF NEW YORK MELLON CORPORATION

Average Balances and Interest Rates

	2012																				2013
(dollar amounts in millions)	March 31					June 30					September 30					December 31					March 31					June 30
	Average balance			Average rates		Average balance			Average rates		Average balance			Average rates		Average balance			Average rates		Average balance			Average rates		Average balance			Average rates
Assets
Interest-earning assets:
Interest-bearing deposits with banks (primarily foreign)	$	35,095		1.30	%	$	38,474		0.98	%	$	41,201		0.96	%	$	41,018		0.80	%	$	40,967		0.70	%	$	42,772		0.64	%
Interest-bearing deposits with Federal Reserve & other central banks	63,526			0.27		57,904			0.27		61,849			0.21		71,794			0.21		63,240			0.20		55,911			0.22
Federal funds sold and securities purchased under resale agreements	5,174			0.73		5,493			0.62		5,315			0.64		5,984			0.56		7,478			0.54		7,878			0.52
Margin loans	12,901			1.29		13,331			1.27		13,033			1.30		13,085			1.26		13,346			1.17		13,906			1.14
Non-margin loans:
Domestic offices	20,128			2.46		19,663			2.52		18,821			2.62		20,560			2.42		21,358			2.38		21,689			2.40
Foreign offices	10,180			1.77		9,998			1.86		10,574			1.61		9,968			1.64		11,575			1.36		12,318			1.32
Total non-margin loans	30,308			2.23		29,661			2.30		29,395			2.26		30,528			2.16		32,933			2.02		34,007			2.01
Securities
U.S. government obligations	17,268			1.56		15,387			1.65		18,917			1.39		19,915			1.39		18,814			1.54		19,887			1.62
U.S. government agency obligations	32,347			2.44		39,070			2.23		41,430			1.94		41,361			1.94		42,397			1.85		47,631			1.80
Obligations of states and political subdivisions	3,354			2.97		4,777			2.65		5,933			2.57		6,154			2.52		6,194			2.38		6,377			2.26
Other securities	33,839			2.84		32,625			2.51		33,724			2.51		35,082			2.04		34,507			2.03		33,243			1.93
Trading securities	2,519			2.78		3,033			2.57		4,431			2.40		5,294			2.54		5,878			2.40		6,869			2.33
Total securities	89,327			2.45		94,892			2.25		104,435			2.06		107,806			1.90		107,790			1.91		114,007			1.86
Total interest-earning assets	236,331			1.56		239,755			1.48		255,228			1.40		270,215			1.27		265,754			1.26		268,481			1.27
Allowance for loan losses	(392		)			(382		)			(361		)			(337		)			(264		)			(237		)
Cash and due from banks	4,271					4,412					4,277					4,284					4,534					5,060
Other assets	49,690					49,933					48,775					50,439					52,137					52,627
Total Asset Consol VIE FAS 167	11,444					11,284					10,995					11,394					11,503					11,524
Total Assets	$	301,344				$	305,002				$	318,914				$	335,995				$	333,664				$	337,455
Liabilities and total equity
Interest-bearing liabilities:
Money market rate accounts and demand deposit accounts	$	4,446		0.28	%	$	8,421		0.24	%	$	9,724		0.16	%	$	8,570		0.18	%	$	8,778		0.19	%	$	8,183		0.22	%
Savings	704			0.10		702			0.13		730			0.17		815			0.29		819			0.29		897			0.24
Other time deposits	33,618			0.08		33,180			0.11		34,193			0.07		38,085			0.06		39,091			0.05		41,706			0.04
Foreign offices	86,670			0.15		88,179			0.13		93,613			0.10		95,249			0.09		99,040			0.08		100,433			0.07
Total interest-bearing deposits	125,438			0.14		130,482			0.13		138,260			0.10		142,719			0.09		147,728			0.08		151,219			0.07
Federal funds purchased and securities sold under repurchase agreements	8,584			(0.02	)	11,254			0.01		10,092			(0.06	)	10,158			0.07		9,187			(0.12	)	9,206			(0.28	)
Trading Liabilities	1,153			1.55		1,256			1.87		1,397			1.87		1,943			1.41		2,552			1.35		3,036			1.40
Other borrowed funds	2,579			0.79		2,550			0.99		1,855			0.72		1,869			1.29		1,397			0.76		1,443			0.19
Payables to customers and broker-dealers	7,555			0.11		7,895			0.10		8,141			0.10		8,532			0.09		9,019			0.09		9,073			0.08
Long-term debt	20,538			1.79		20,084			1.67		19,535			1.66		19,259			1.46		18,878			1.18		19,002			0.94
Total interest-bearing liabilities	165,847			0.34		173,521			0.32		179,280			0.28		184,480			0.25		188,761			0.20		192,979			0.16
Total noninterest-bearing deposits	66,613					62,860					70,230					79,987					70,337					70,648
Other liabilities	24,248					23,588					23,712					24,458					27,416					26,779
VIE Liabilities & Obligations FAS 167	10,159					10,072					9,686					10,114					10,186					10,242
Total Shareholders' Equity	33,718					34,123					34,522					36,028					35,966					35,817
Noncontrolling interest	759					838					1,484					928					998					990
Total liabilities and shareholders' equity	$	301,344				$	305,002				$	318,914				$	335,995				$	333,664				$	337,455
Net interest margin - Taxable equivalent basis				1.32	%				1.25	%				1.20	%				1.09	%				1.11	%				1.15	%

Note: Interest and average rates were calculated on a taxable equivalent basis, at tax rates of approximately 35%, using dollar amounts in thousands and the actual number of days in the year.

THE BANK OF NEW YORK MELLON CORPORATION

Average Balances and Interest Rates (continued)

.

	2013										2014
(dollar amounts in millions)	September 30					December 31					March 31					June 30					September 30
	Average balance			Average rates		Average balance			Average rates		Average balance			Average rates		Average balance			Average rates		Average balance			Average rates
Assets
Interest-earning assets:
Interest-bearing deposits with banks (primarily foreign)	$	41,597		0.66	%	$	39,563		0.71	%	$	41,617		0.71	%	$	41,424		0.74	%	$	34,882		0.66	%
Interest-bearing deposits with Federal Reserve & other central banks	65,704			0.23		83,232			0.23		74,399			0.25		85,546			0.26		88,713			0.23
Federal funds sold and securities purchased under resale agreements	8,864			0.56		9,403			0.61		11,118			0.61		13,387			0.58		15,683			0.61
Margin loans	14,653			1.10		15,224			1.08		15,840			1.07		17,050			1.05		18,108			1.04
Non-margin loans:
Domestic offices	21,378			2.40		22,538			2.28		22,002			2.31		22,566			2.30		23,826			2.20
Foreign offices	12,225			1.31		13,006			1.22		13,805			1.26		13,833			1.34		12,901			1.30
Total non-margin loans	33,603			2.01		35,544			1.89		35,807			1.90		36,399			1.94		36,727			1.88
Securities
U.S. government obligations	16,540			1.76		13,418			1.96		17,213			1.61		17,462			1.63		23,067			1.38
U.S. government agency obligations	45,745			2.02		43,465			2.00		42,710			1.87		43,167			1.67		46,186			1.67
Obligations of states and political subdivisions	6,518			2.47		6,757			2.76		6,691			2.50		6,473			2.58		5,830			2.54
Other securities	32,403			1.92		33,000			1.78		33,920			1.64		34,318			1.55		36,972			1.37
Trading securities	5,523			2.83		6,173			2.82		5,217			2.60		5,532			2.19		5,435			2.36
Total securities	106,729			2.02		102,813			1.97		105,751			1.83		106,952			1.71		117,490			1.59
Total interest-earning assets	271,150			1.28		285,779			1.21		284,532			1.17		300,758			1.10		311,603			1.05
Allowance for loan losses	(212		)			(207		)			(210		)			(197		)			(187		)
Cash and due from banks	6,400					6,623					5,886					5,064					6,225
Other assets	52,549					52,434					53,430					52,182					52,526
Total Asset Consol VIE FAS 167	11,863					11,506					11,354					11,405					10,242
Total Assets	$	341,750				$	356,135				$	354,992				$	369,212				$	380,409
Liabilities and total equity
Interest-bearing liabilities:
Money market rate accounts and demand deposit accounts	$	8,626		0.16	%	$	11,042		0.12	%	$	9,333		0.11	%	$	7,583		0.13	%	7,886			0.14	%
Savings	1,015			0.25		993			0.25		1,034			0.25		1,185			0.27		1,258			0.28
Other time deposits	41,546			0.04		41,523			0.04		41,544			0.04		42,824			0.04		41,248			0.04
Foreign offices	102,360			0.07		103,462			0.06		101,075			0.06		111,082			0.06		113,841			0.05
Total interest-bearing deposits	153,547			0.06		157,020			0.06		152,986			0.06		162,674			0.06		164,233			0.06
Federal funds purchased and securities sold under repurchase agreements	12,164			(0.12	)	13,155			(0.10	)	14,505			(0.13	)	19,030			(0.05	)	20,620			(0.07	)
Trading Liabilities	2,325			1.69		2,534			1.42		1,978			1.59		2,993			0.97		2,806			0.84
Other borrowed funds	2,233			0.19		2,378			0.42		1,137			0.47		3,242			0.23		4,587			0.15
Payables to customers and broker-dealers	8,659			0.09		9,400			0.09		8,883			0.09		8,916			0.09		9,705			0.10
Long-term debt	19,025			1.00		19,501			1.05		20,420			1.09		20,361			1.16		20,429			1.12
Total interest-bearing liabilities	197,953			0.16		203,988			0.17		199,909			0.17		217,216			0.17		222,380			0.16
Total noninterest-bearing deposits	72,075					79,999					81,430					77,820					82,334
Other liabilities	24,380					23,546					24,608					24,854					27,369
VIE Liabilities & Obligations FAS 167	10,466					10,283					10,128					10,180					8,879
Total Shareholders' Equity	35,826					37,484					38,097					38,127					38,313
Noncontrolling interest	1,050					835					820					1,015					1,134
Total liabilities and shareholders' equity	$	341,750				$	356,135				$	354,992				$	369,212				$	380,409
Net interest margin - Taxable equivalent basis				1.16	%				1.09	%				1.05	%				0.98	%				0.94	%

Note: Interest and average rates were calculated on a taxable equivalent basis, at tax rates of approximately 35%, using dollar amounts in thousands and the actual number of days in the year.

THE BANK OF NEW YORK MELLON CORPORATION

NONINTEREST EXPENSE - 11 Quarter Trend

	2012								2013								2014
(dollar amounts in millions)	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr			2nd Qtr		3rd Qtr
Staff:
Compensation	$	861	$	866	$	893	$	911	$	885	$	891	$	915	$	929	$	925		$	903	$	909
Incentives	352		311		306		311		338		364		339		343		359			313		340
Employee benefits	240		238		237		235		249		254		262		250		227			223		228
Total staff	1,453		1,415		1,436		1,457		1,472		1,509		1,516		1,522		1,511			1,439		1,477
Professional, legal and other purchased services	299		309		292		322		295		317		296		344		312			314		323
Software and equipment	205		209		208		233		228		238		226		241		237			236		234
Net occupancy	147		141		149		156		163		159		153		154		154			152		154
Distribution and servicing	101		103		109		108		106		111		108		110		107			112		107
Business development	56		71		60		88		68		90		63		96		64			68		61
Sub-custodian	70		70		65		64		64		77		71		68		68			81		67
Other	220		254		265		255		307		215		249		258		223			347		250
Amortization of intangible assets	96		97		95		96		86		93		81		82		75			75		75
Merger & integration, litigation and restructuring charges	109		378		26		46		39		13		16		2		(12		)	122		220
Total noninterest expense	$	2,756	$	3,047	$	2,705	$	2,825	$	2,828	$	2,822	$	2,779	$	2,877	$	2,739		$	2,946	$	2,968
Memo:
Total noninterest expense excluding M&I, litigation, restructuring, amortization of intangible assets and the charge (recovery) related to investment management funds, net of incentives - Non-GAAP	$	2,551	$	2,572	$	2,568	$	2,683	$	2,664	$	2,743	$	2,682	$	2,793	$	2,681		$	2,640	$	2,673
Full Time Employees at period-end	47,800		48,300		48,700		49,500		49,700		49,800		50,800		51,100		51,400			51,100		50,900

THE BANK OF NEW YORK MELLON CORPORATION

ASSETS UNDER MANAGEMENT, CUSTODY AND/OR ADMINISTRATION AND SECURITIES LENDING - 11 Quarter Trend

	2012												2013												2014
(dollar amounts in billions unless otherwise noted)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr
Assets under management at period-end
Institutional	$	829		$	835		$	882		$	894		$	939		$	968		$	1,041		$	1,072		$	1,118		$	1,109		$	1,131
Mutual Funds	404			388			398			411			405			378			407			425			415			440			430
Private Client	69			70			73			75			79			81			84			86			87			87			85
Assets under management (a)	$	1,302		$	1,293		$	1,353		$	1,380		$	1,423		$	1,427		$	1,532		$	1,583		$	1,620		$	1,636		$	1,646		(b)
AUM at period-end, by product type: (a)
Equity	18		%	17		%	17		%	17		%	17		%	17		%	17		%	17		%	17		%	17		%	16		%
Fixed Income	15			15			15			15			15			15			14			14			14			14			13
Index	17			17			18			18			19			20			20			20			20			21			21
Liability-driven investments (c)	22			23			23			24			25			25			26			26			27			27			28
Alternative investments	4			5			4			4			4			4			4			4			4			4			4
Cash	24			23			23			22			20			19			19			19			18			17			18
Total AUM (a)	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%	(b)
Assets under custody and/or administration at period-end (in trillions) (d)	$	25.7		$	25.2		$	26.4		$	26.3		$	26.3		$	26.2		$	27.4		$	27.6		$	27.9		$	28.5		$	28.3		(b)
Market value of securities on loan at period-end (e)	$	256		$	267		$	251		$	237		$	244		$	255		$	255		$	235		$	282		$	282		$	282
Key Market Metrics
S&P 500 Index (f)	1408			1362			1441			1426			1569			1606			1682			1848			1872			1960			1972
S&P 500 Index - daily average	1349			1350			1401			1418			1514			1609			1675			1769			1835			1900			1976
FTSE 100 Index (f)	5768			5571			5742			5898			6412			6215			6462			6749			6598			6744			6623
FTSE 100 Index-daily average	5822			5551			5744			5844			6300			6438			6530			6612			6680			6764			6756
MSCI World Index (f)	1312			1236			1312			1339			1435			1434			1544			1661			1674			1743			1698
MSCI World Index-daily average	1268			1233			1274			1312			1405			1463			1511			1602			1647			1698			1733
Barclays Capital Global Aggregate BondSM Index (f)(g)	351			353			368			366			356			343			356			354			365			376			361
NYSE & NASDAQ Share Volume (in billions)	186			192			173			174			174			186			166			179			196			187			173
JP Morgan G7 Volatility Index - daily average (h)	10.39			10.30			8.70			7.56			9.02			9.84			9.72			8.20			7.80			6.22			6.21
Average Fed Funds effective rate	0.10		%	0.15		%	0.14		%	0.16		%	0.14		%	0.12		%	0.09		%	0.09		%	0.07		%	0.09		%	0.09		%
(a) Excludes securities lending cash management assets and assets managed in the Investment Services business. Also excludes assets under management related to Newton's private client business that was sold in September 2013.
(b) Preliminary.
(c) Includes currency and overlay assets under management.
(d) Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.2 trillion at March 31, 2012, June 30, 2012 and Sept. 30, 2012, $1.1 trillion at Dec. 31, 2012, $1.2 trillion at March 31, 2013, $1.1 trillion at June 30, 2013, and $1.2 trillion at Sept. 30, 2013, Dec. 31, 2013, March 31, 2014, June 30, 2014 and Sept. 30, 2014.
(e) Represents the total amount of securities on loan managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent, beginning in the fourth quarter of 2013, on behalf of CIBC Mellon clients, which totaled $62 billion at Dec. 31, 2013, $66 billion at March 31, 2014, $64 billion at June 30, 2014 and $65 billion at Sept. 30, 2014..
(f) Period end.
(g) Unhedged in U.S. dollar terms.
(h) The JP Morgan G7 Volatility Index is based on the implied volatility in 3-month currency options.

THE BANK OF NEW YORK MELLON CORPORATION

ASSETS UNDER MANAGEMENT NET FLOWS - 11 Quarter Trend

	2012												2013												2014
(dollar amounts in billions )	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr
Assets under management at beginning of period (a)	$	1,255		$	1,302		$	1,293		$	1,353		$	1,380		$	1,423		$	1,427		$	1,532		$	1,583		$	1,620		1,636
Net inflows (outflows):
Long-term:
Equity	2			(1		)	—			(1		)	1			1			3			(5		)	(1		)	(4		)	(2		)
Fixed income	5			7			5			2			5			2			(1		)	5			—			(1		)	—
Index	(2		)	7			5			(1		)	12			8			2			(3		)	—			7			(3		)
Liability-driven investments (b)	—			11			—			14			22			11			27			4			20			(17		)	18
Alternative investments	2			2			(1		)	—			—			(1		)	1			1			2			2			—
Total long-term inflows (outflows)	7			26			9			14			40			21			32			2			21			(13		)	13
Short-term:
Cash	(9		)	(14		)	9			(6		)	(13		)	(1		)	13			6			(7		)	(18		)	19
Total net inflows (outflows)	(2		)	12			18			8			27			20			45			8			14			(31		)	32
Net market / currency impact / other	49			(21		)	42			19			16			(16		)	60			43			23			47			(22		)
Assets under management at end of period (a)	$	1,302		$	1,293		$	1,353		$	1,380		$	1,423		$	1,427		$	1,532		$	1,583		$	1,620		$	1,636		$	1,646		(c)

(a) Excludes securities lending cash management assets and assets managed in the Investment Services business. Also excludes assets under management related to Newton’s private client business that was sold in September 2013.

(b) Includes currency and overlay assets under management.

(c) Preliminary.

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT MANAGEMENT BUSINESS - 11 Quarter Trend

	2012												2013												2014
(dollar amounts in millions unless otherwise noted)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr
Revenue:
Investment management fees:
Mutual funds	$	265		$	275		$	287		$	298		$	299		$	299		$	293		$	303		$	299		$	311		$	315
Institutional clients	327			326			339			355			360			366			367			385			372			385			382
Wealth management	134			136			136			138			143			146			145			149			153			156			158
Total investment management fees	726			737			762			791			802			811			805			837			824			852			855
Performance fees	16			54			10			57			15			33			10			72			20			29			22
Investment management and performance fees	742			791			772			848			817			844			815			909			844			881			877
Distribution and servicing	45			45			47			50			46			44			41			41			40			41			41
Other (a)	50			12			39			23			18			24			26			43			16			48			16
Total fee and other revenue (a)	837			848			858			921			881			912			882			993			900			970			934
Net interest revenue	55			52			51			56			62			63			67			68			70			66			69
Total revenue	892			900			909			977			943			975			949			1,061			970			1,036			1,003
Noninterest expense (ex. intangible amortization and the charge (recovery) related to investment management funds)	613			635			620			706			659			692			689			760			698			725			727
Income before taxes (ex. intangible amortization and the charge (recovery) related to investment management funds)	279			265			289			271			284			283			260			301			272			311			276
Charge (recovery) related to investment management funds, net of incentives	—			—			16			—			39			(27		)	—			—			(5		)	109			—
Amortization of intangible assets	48			48			48			48			39			39			35			35			31			31			31
Income before taxes	$	231		$	217		$	225		$	223		$	206		$	271		$	225		$	266		$	246		$	171		$	245
Average assets	$	36,112		$	35,603		$	35,285		$	37,474		$	38,743		$	37,953		$	38,690		$	38,796		$	39,463		$	37,750		$	36,670
Assets under management at period-end (in billions) (b)	$	1,302		$	1,293		$	1,353		$	1,380		$	1,423		$	1,427		$	1,532		$	1,583		$	1,620		$	1,636		$	1,646		(c)
Pre-tax operating margin	26		%	24		%	25		%	23		%	22		%	28		%	24		%	25		%	25		%	16		%	24		%
Adjusted pre-tax operating margin (d)	37		%	35		%	37		%	32		%	35		%	34		%	33		%	34		%	34		%	36		%	33		%

(a) Total fee and other revenue includes the impact of the consolidated investment management funds. See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” beginning on page 24 of the Quarterly Earnings Release for the reconciliation of Non-GAAP measures. Additionally, other revenue includes asset servicing and treasury services revenue.

(b) Excludes securities lending cash management assets and assets managed in the Investment Services business. Also excludes assets under management related to Newton's private client business that was sold in September 2013.

(c) Preliminary.

(d) Excludes the net negative impact of money market fee waivers, amortization of intangible assets and the charge (recovery) related to investment management funds net of incentives, and is net of distribution and servicing expense. See "Supplemental information - Explanation of GAAP and Non-GAAP financial measures" beginning on page 24 of the Quarterly Earnings Release for the reconciliation of Non-GAAP measures.

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT SERVICES BUSINESS - 11 Quarter Trend

	2012												2013												2014
(dollar amounts in millions unless otherwise noted)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr
Revenue:
Investment services fees
Asset servicing fees - ex. securities lending	$	876		$	871		$	876		$	885		$	912		$	922		$	913		$	936		$	955		$	958		$	971
Securities lending revenue	39			48			37			31			31			39			26			21			30			35			27
Issuer services	251			275			310			213			236			294			321			236			228			231			314
Clearing services	300			307			285			291			302			320			314			322			323			324			336
Treasury services	131			129			131			136			137			135			135			137			134			140			139
Total investment services fees	1,597			1,630			1,639			1,556			1,618			1,710			1,709			1,652			1,670			1,688			1,787
Foreign Exchange and other trading revenue	173			176			153			126			173			193			177			150			158			145			159
Other (a)	75			67			78			75			70			67			63			58			59			87			59
Total fee and other revenue (a)	1,845			1,873			1,870			1,757			1,861			1,970			1,949			1,860			1,887			1,920			2,005
Net interest revenue	642			607			609			581			653			633			619			610			590			593			583
Total revenue	2,487			2,480			2,479			2,338			2,514			2,603			2,568			2,470			2,477			2,513			2,588
Provision for credit losses	17			(15		)	(4		)	(1		)	1			—			—			—			—			—			—
Noninterest expenses (ex. intangible amortization)	1,783			2,090			1,729			1,766			1,796			1,825			1,765			1,822			1,778			1,824			1,835
Income before taxes (ex. intangible amortization)	687			405			754			573			717			778			803			648			699			689			753
Amortization of intangible assets	48			49			47			48			47			54			46			47			44			44			44
Income before taxes	$	639		$	356		$	707		$	525		$	670		$	724		$	757		$	601		$	655		$	645		$	709
Average loans	$	26,630		$	25,611		$	24,917		$	24,868		$	26,697		$	27,814		$	27,865		$	31,211		$	31,468		$	33,115		$	33,785
Average assets	$	214,592		$	210,064		$	224,986		$	243,052		$	240,187		$	244,802		$	246,252		$	258,294		$	258,470		$	264,221		$	266,455
Average deposits	$	175,526		$	173,087		$	188,743		$	204,164		$	200,222		$	204,499		$	206,068		$	216,216		$	214,947		$	220,701		$	221,734
Pre-tax operating margin	26		%	15		%	29		%	22		%	27		%	28		%	29		%	24		%	26		%	26		%	27		%
Pre-tax operating margin (ex. intangible amortization)	28		%	17		%	30		%	24		%	29		%	30		%	31		%	26		%	28		%	27		%	29		%
Investment services fees as a percentage of noninterest expense (b)	94		%	94		%	96		%	90		%	92		%	94		%	97		%	90		%	93		%	93		%	100		%
Assets under custody and/or administration at period-end (in trillions) (c)	$	25.7		$	25.2		$	26.4		$	26.3		$	26.3		$	26.2		$	27.4		$	27.6		$	27.9		$	28.5		$	28.3		(d)
Market value of securities on loan at period-end (in billions) (e)	$	256		$	267		$	251		$	237		$	244		$	255		$	255		$	235		$	264		$	280		$	282
(a) Total fee and other revenue includes investment management fees and distribution and servicing revenue.
(b) Noninterest expense excludes amortization of intangible assets and litigation expense.
(c) Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.2 trillion at March 31, 2012, June 30, 2012 and Sept. 30, 2012, $1.1 trillion at Dec. 31, 2012, $1.2 trillion at March 31, 2013, $1.1 trillion at June 30, 2013, and $1.2 trillion at Sept. 30, 2013, Dec. 31, 2013, March 31, 2014, June 30, 2014 and Sept. 30, 2014.
(d) Preliminary.
(e) Represents the total amount of securities on loan managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent, beginning in the fourth quarter of 2013, on behalf of CIBC Mellon clients, which totaled $62 billion at Dec. 31, 2013, $66 billion at March 31, 2014, $64 billion at June 30, 2014 and $65 billion at Sept. 30, 2014.

THE BANK OF NEW YORK MELLON

OTHER SEGMENT- 11 Quarter Trend

	2012 (a)												2013 (a)											2014
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr		4th Qtr			1st Qtr			2nd Qtr			3rd Qtr
Revenue:
Fee and other revenue (a)	$	201		$	146		$	186		$	219		$	152		$	347		$	172	$	(20	)	$	112		$	119		$	928
Net interest revenue	68			75			89			88			4			61			86		83			68			60			69
Total revenue (a)	269			221			275			307			156			408			258		63			180			179			997
Provision for credit loss	(12		)	(4		)	(1		)	(60		)	(25		)	(19		)	2		6			(18		)	(12		)	(19		)
Noninterest expense (ex. M&I and restructuring charges)	255			203			232			230			243			236			230		200			193			93			274
Income (loss) before taxes (ex. M&I and restructuring charges) (a)	$	26		$	22		$	44		$	137		$	(62	)	$	191		$	26	$	(143	)	$	5		$	98		$	742
M&I and restructuring charges	9			22			13			27			5			3			14		13			—			120			57
Income (loss) before taxes (a)	$	17		$	—		$	31		$	110		$	(67	)	$	188		$	12	$	(156	)	$	5		$	(22	)	$	685
Average loans and leases	$	9,148		$	9,618		$	9,389		$	10,267		$	10,610		$	10,846		$	10,938	$	9,802		$	10,104		$	9,962		$	10,278
Average assets	$	50,640		$	59,335		$	58,643		$	55,469		$	54,734		$	54,700		$	56,808	$	59,045		$	57,059		$	67,240		$	77,284
(a) In the first quarter of 2014, prior periods were restated to reflect the retrospective application of adopting new accounting guidance related to our investments in qualified affordable housing projects (ASU 2014-01).

THE BANK OF NEW YORK MELLON CORPORATION

BUSINESSES

	Investment Management									Investment Services									Other												Consolidated Results
(dollar amounts in millions unless otherwise noted)	2013			2012			2011			2013			2012			2011			2013				2012				2011				2013				2012				2011
Revenue:
Investment services fees
Asset servicing	$	104		$	117		$	112		$	3,800		$	3,663		$	3,585		$	1			$	—			$	—			$	3,905			$	3,780			$	3,697
Issuer services	—			—			—			1,087			1,049			1,252			3				3				193				1,090				1,052				1,445
Clearing services	—			—			—			1,258			1,183			1,149			6				10				10				1,264				1,193				1,159
Treasury services	2			2			2			544			527			513			8				20				20				554				549				535
Total investment services fees	106			119			114			6,689			6,422			6,499			18				33				223				6,813				6,574				6,836
Investment management fees	3,255			3,016			2,905			63			66			64			27				37				46				3,345				3,119				3,015
Performance fees	130			137			93			—			—			1			—				(1		)		—				130				136				94
Foreign exchange and other trading revenue	8			9			(1		)	693			628			827			(27		)		55				22				674				692				848
Distribution and servicing	172			187			181			8			5			6			—				—				—				180				192				187
Financing-related fees	5			6			6			44			42			46			123				124				118				172				172				170
Investment and other income	(14		)	(9		)	(107		)	142			171			186			376			(a)	352			(a)	487			(a)	504			(a)	514			(a)	566			(a)
Total fee revenue	3,662			3,465			3,191			7,639			7,334			7,629			517			(a)	600			(a)	896			(a)	11,818			(a)(b)	11,399			(a)(b)	11,716			(a)(b)
Net securities gains (losses)	6			(1		)	1			1			11			—			134				152				47				141				162				48
Total fee and other revenue	3,668			3,464			3,192			7,640			7,345			7,629			651			(a)	752			(a)	943			(a)	11,959			(a)(b)	11,561			(a)(b)	11,764			(a)(b)
Net interest revenue (expense)	260			214			204			2,515			2,439			2,567			234				320				212				3,009				2,973				2,983
Total revenue	3,928			3,678			3,396			10,155			9,784			10,196			885			(a)	1,072			(a)	1,155			(a)	14,968			(a)	14,534			(a)	14,747			(a)
Provision for credit losses	—			—			1			1			(3		)	—			(36		)		(77		)		—				(35		)		(80		)		1
Noninterest expenses (ex. intangible amortization)	2,812			2,590			2,500			7,208			7,368			6,996			944				991				1,187				10,964				10,949				10,683
Income (loss) before taxes (ex. intangible amortization)	1,116			1,088			895			2,946			2,419			3,200			(23		)	(a)	158			(a)	(32		)	(a)	4,039			(a)(b)	3,665			(a)(b)	4,063			(a)(b)
Amortization of intangible assets	148			192			213			194			192			199			—				���				16				342				384				428
Income (loss) before taxes and noncontrolling interest	$	968		$	896		$	682		$	2,752		$	2,227		$	3,001		$	(23	)	(a)	$	158		(a)	$	(48	)	(a)	$	3,697		(a)(b)	$	3,281		(a)(b)	$	3,635		(a)(b)
Average loans	$	9,361		$	7,950		$	6,970		$	28,407		$	25,503		$	24,326		$	10,548			$	9,607			$	9,623			$	48,316			$	43,060			$	40,919
Average assets	$	38,546		$	36,120		$	36,696		$	247,430		$	223,233		$	205,336		$	56,335			$	56,028			$	49,113			$	342,311			$	315,381			$	291,145
Average deposits	$	13,755		$	11,311		$	9,769		$	206,793		$	185,441		$	166,823		$	5,148			$	7,458			$	6,087			$	225,696			$	204,210			$	182,679
Assets under management at period-end (in billions) (c)	$	1,583		$	1,380		$	1,255		$	—		$	—		$	—		$	—			$	—			$	—			$	1,583			$	1,380			$	1,255
Assets under custody and/or administration at period-end (in trillions) (d)	$	—		$	—		$	—		$	27.6		$	26.3		$	25.1		$	—			$	—			$	—			$	27.6			$	26.3			$	25.1
Market value of securities on loan at period-end (in billions) (e)	$	—		$	—		$	—		$	235		$	237		$	266		$	—			$	—			$	—			$	235			$	237			$	266
Pre-tax operating margin - GAAP	25		%	24		%	20		%	27		%	23		%	29		%	N/M				N/M				N/M				25		%		23		%		25		%
Memo:
Securities Lending Revenue																															$	155			$	198			$	183
Note: On December 31, 2011, BNY Mellon sold its Shareowner Services business. In the first quarter of 2012, we reclassified the results of the Shareowner Services business from the Investment Services business to the Other segment. The reclassification did not impact the consolidated results. All prior periods have been restated.
(a) In the first quarter of 2014, prior periods were restated to reflect the retrospective application of adopting new accounting guidance related to our investments in qualified affordable housing projects (ASU 2014-01).
(b) Total fee and other revenue and income before taxes for the years 2011, 2012 and 2013 includes income from consolidated investment management funds of $200 million, $189 million and $183 million, respectively, net of income attributable to noncontrolling interests of $50 million, $76 million and $80 million respectively. The net of these income statement line items of $150 million, $113 million and $103 million,respectively, are included above in fee and other revenue.
(c) Excludes securities lending cash management assets and assets managed in the Investment Services business. Also excludes assets under management related to Newton's private client business that was sold in September 2013.
(d) Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.1 trillion at Dec. 31, 2011 and Dec. 31, 2012, and $1.2 trillion at Dec. 31, 2013.
(e) Represents the total amount of securities on loan managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent, beginning in the fourth quarter of 2013, on behalf of CIBC Mellon clients, which totaled $62 billion at Dec. 31, 2013.
Note: See pages 9 through 11 for businesses results.
N/M - Not meaningful

THE BANK OF NEW YORK MELLON CORPORATION

NONPERFORMING ASSETS - 11 Quarter Trend

	2012												2013												2014
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr
Nonperforming loans:
Other residential mortgages	$	188		$	177		$	166		$	158		$	148		$	135		$	128		$	117		$	107		$	105		$	113
Wealth management	35			35			33			30			30			13			12			11			12			12			13
Commercial real estate	39			30			29			18			17			18			4			4			4			4			4
Commercial	32			31			29			27			24			24			15			15			13			13			13
Foreign loans	10			9			9			9			9			9			9			6			7			4			—
Financial institutions	14			3			3			3			3			2			1			—			—			—			—
Total nonperforming loans	318			285			269			245			231			201			169			153			143			138			143
Other assets owned	13			9			5			4			3			3			3			3			3			4			4
Total nonperforming assets (a)	$	331		$	294		$	274		$	249		$	234		$	204		$	172		$	156		$	146		$	142		$	147
Nonperforming assets ratio	0.77		%	0.65		%	0.60		%	0.53		%	0.48		%	0.41		%	0.34		%	0.30		%	0.27		%	0.24		%	0.26		%
Nonperforming assets ratio excluding margin loans	1.11		%	0.92		%	0.83		%	0.74		%	0.65		%	0.57		%	0.49		%	0.43		%	0.39		%	0.34		%	0.37		%
Allowance for loan losses/nonperforming loans	121.4			127.0			126.0			108.6			102.6			105.5			121.9			137.3			138.5			135.5			133.6
Allowance for loan losses/nonperforming assets	116.6			123.1			123.7			106.8			101.3			103.9			119.8			134.6			135.6			131.7			129.9
Total allowance for credit losses/nonperforming loans	155.3			163.9			169.5			158.0			155.0			167.7			200.6			224.8			228.0			225.4			201.4
Total allowance for credit losses/nonperforming assets	149.2			158.8			166.4			155.4			153.0			165.2			197.1			220.5			221.8			219.0			195.9
(a) Loans of consolidated investment management funds are not part of BNY Mellon's loan portfolio. Included in the loans of consolidated investment management funds are nonperforming loans of the 1st, 2nd, 3rd and 4th quarters of 2012 of $180 million, $155 million, $153 million, and $174 million, respectively, for the 1st through 4th quarters of 2013 of $161 million, $44 million, $31 million, and $16 million, respectively, and for the 1st quarter through 3rd quarters of 2014 of $74 million, $68 million, and $79 million, respectively. These loans are recorded at fair value and therefore do not impact the provision for credit losses and allowance for loan losses, and accordingly are excluded from the nonperforming assets table above.

THE BANK OF NEW YORK MELLON CORPORATION

ALLOWANCE FOR CREDIT LOSSES, PROVISION AND NET CHARGE-OFFS - 11 Quarter Trend

	2012												2013												2014
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr
Allowance for credit losses:
Allowance for credit losses	$	394		$	386		$	362		$	339		$	266		$	237		$	212		$	206		$	210		$	198		$	187
Allowance for lending-related commitments	103			108			105			117			121			121			125			133			134			128			124
Allowance for credit losses - beginning of period	497			494			467			456			387			358			337			339			344			326			311
Net (charge-offs)
Charge-offs	(10		)	(10		)	(8		)	(10		)	(5		)	(3		)	(2		)	(6		)	(1		)	(4		)	(5		)
Recoveries	2			2			2			2			—			1			2			5			1			1			1
Total Net (charge-offs)	(8		)	(8		)	(6		)	(8		)	(5		)	(2		)	—			(1		)	—			(3		)	(4		)
Provision for credit losses	5			(19		)	(5		)	(61		)	(24		)	(19		)	2			6			(18		)	(12		)	(19		)
Allowance for credit losses - end of period	494			467			456			387			358			337			339			344			326			311			288
Allowance for loan losses
Allowance for loan losses	$	386		$	362		$	339		$	266		$	237		$	212		$	206		$	210		$	198		$	187		$	191
Allowance for lending-related commitments	108			105			117			121			121			125			133			134			128			124			97
Allowance for credit losses - end of period	494			467			456			387			358			337			339			344			326			311			288
Allowance for loan losses as a percentage of total loans	0.90		%	0.80		%	0.74		%	0.57		%	0.48		%	0.42		%	0.41		%	0.41		%	0.37		%	0.32		%	0.33		%