Bank of New York Mellon : Fourth Quarter 2019 Earnings Press Release

News Release

BNY MELLON REPORTS FOURTH QUARTER 2019 EARNINGS OF

$1.4 BILLION OR $1.52 PER COMMON SHARE,

INCLUDES $0.50 PER SHARE POSITIVE IMPACT OF NOTABLE ITEMS

Revenue up 19% (a)		EPS up 81% (a)		ROE 15%			CET1 11.5%
		ROTCE 29%	(b)		SLR 6.1%

(a) Excluding notable items, revenue down slightly and EPS up 2% (b).

NEW YORK, January 16, 2020 - The Bank of New York Mellon Corporation ("BNY Mellon") (NYSE: BK) today reported:

								4Q19 vs.
			4Q19		3Q19		4Q18	3Q19	4Q18
Net income applicable to common shareholders (in millions)	$	1,391	$	1,002	$	832	39%	67%
Diluted earnings per common share	$	1.52	$	1.07	$	0.84	42%	81%
Notable Items					CEO Commentary

4Q19 results include $460 million, or $0.50 per share, for the gain on sale of an equity investment, offset by severance, net securities losses and litigation.

4Q18 results include $(155) million, or $(0.16) per share, for severance, real estate and litigation, offset by adjustments to estimates for U.S. tax legislation and other changes.

Fourth Quarter Results

Total revenue of $4.8 billion, increased 19%; decreased slightly excluding notable items (b)

• Fee revenue increased 26%; nearly all of the increase driven by the gain on sale of an equity investment
• Net interest revenue decreased 8%

Total noninterest expense of $3.0 billion, decreased 1%; increased 2% excluding notable items (b)

• Continued investments in technology

Investment Services

• Total revenue decreased 2%
• Income before taxes decreased 9%
• AUC/A of $37.1 trillion, increased 12%

Investment Management

• Total revenue increased 1%
• Income before taxes decreased 1%
• AUM of $1.9 trillion, increased 11%

Repurchased 22.2 million common shares for $1.04 billion, and paid dividends of $286 million to common shareholders.

"In 2019, we continued to build the foundation for growth and the fourth quarter showed progress toward this goal. We recently announced additional partnerships that further our efforts to provide best-in-class services to our clients by opening our platform and combining our capabilities with industry leaders and innovative fintechs. Expenses continued to be well managed as our investments to drive operating efficiencies are bearing fruit. Although we increased our technology spend by nearly 10 percent for the year, overall expenses were down. Additionally, we continue to deliver strong capital returns to shareholders, returning $4.4 billion in 2019 through share buybacks and dividends. In 2020, we plan to continue investing in technology to further enhance service quality, launch new capabilities, drive additional efficiencies and improve resiliency," Todd Gibbons, interim Chief Executive Officer, said.

"We are also pleased to see that the efforts to drive operating excellence are not only reducing costs, but enhancing quality, as measured by many of our clients. This helped deliver fee growth in many of the services businesses. Although we continue to be negatively impacted by lower rates, a flat yield curve and low foreign exchange volatility, we remain intensely focused on carefully managing costs and driving organic revenue growth," Mr. Gibbons concluded.

Media Relations: Jennifer Hendricks Sullivan [phone]

Investor Relations: Magda Palczynska [phone]

1. For information on this Non-GAAP measure, see "Supplemental Information - Explanation of GAAP and Non-GAAP financial measures" on page 9. Note: Above comparisons are 4Q19 vs. 4Q18.

BNY Mellon 4Q19 Earnings Release

CONSOLIDATED FINANCIAL HIGHLIGHTS

(in millions, except per share amounts and				4Q19							4Q18				4Q19 vs. 4Q18
unless otherwise noted; not
	Results -		Notable		Results -			Results -		Notable		Results -		GAAP	Non-
meaningful - N/M)		GAAP	items (a)	Non-GAAP			GAAP		items (b)	Non-GAAP	GAAP
Fee revenue	$	3,971	$	815	$	3,156	$	3,146	$	-	$	3,146		26%	-%
Net securities (losses)		(25)		(25)		-			-		-		-	N/M	N/M
Total fee and other revenue		3,946		790		3,156			3,146		-		3,146		25	-
Income (loss) from consolidated		17		-		17			(24)		-		(24)		N/M	N/M
investment management funds
Net interest revenue		815		-		815			885		-		885		(8)	(8)
Total revenue		4,778		790		3,988			4,007		-		4,007		19	-
Provision for credit losses		(8)		-		(8)			-		-		-	N/M	N/M
Noninterest expense		2,964		186		2,778			2,987		269		2,718		(1)	2
Income (loss) before income taxes		1,822		604		1,218			1,020		(269)		1,289		79	(6)
Provision (benefit) for income taxes		373		144		229			150		(114)		264		149	(13)
Net income (loss)	$	1,449	$	460	$	989	$	870	$	(155)	$	1,025		67%	(4)%
Net income (loss) applicable to
common shareholders of The Bank	$	1,391	$	460	$	931	$	832	$	(155)	$	987		67%	(6)%
of New York Mellon Corporation
Operating leverage (c)															2,001 bps	(268) bps
Diluted earnings per common share	$	1.52	$	0.50	$	1.01	(d) $	0.84	$	(0.16)	$	0.99 (d)	81%	2%
Average common shares and equivalents	914,739					988,650
outstanding - diluted (in thousands)
Pre-tax operating margin		38%				31%			25%				32%

1. Includes a gain on sale of an equity investment, severance, net securities losses and litigation expense.
2. Includes adjustments to provisional estimates for U.S. tax legislation and other changes, severance, expenses associated with consolidating real estate and litigation expense.
3. Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense.
4. Does not foot due to rounding.

bps - basis points.

KEY DRIVERS (comparisons are 4Q19 vs. 4Q18, unless otherwise stated)

• Total revenue increased 19%, or decreased slightly excluding the notable items (a), primarily reflecting:
• • Fee revenue increased 26%, primarily reflecting the gain on sale of an equity investment. Excluding this gain, fee revenue increased slightly, primarily reflecting higher investment services fees, partially offset by lower foreign exchange revenue.
  • Net interest revenue decreased 8% primarily reflecting the impact of lower interest rates on interest-earning assets and lower noninterest-bearing deposits. This was partially offset by the benefit of lower deposit and funding rates and higher interest- bearing deposits.
• Noninterest expense decreased 1%, or increased 2% excluding notable items (a). The increase primarily reflects the continued investments in technology.
• Effective tax rate of 20.5%.

Assets under custody and/or administration ("AUC/A") and Assets under management ("AUM")

• AUC/A of $37.1 trillion, increased 12%, primarily reflecting higher market values and client inflows.
• AUM of $1.9 trillion, increased 11%, primarily reflecting higher market values and the favorable impact of a weaker U.S. dollar (principally versus the British pound), partially offset by net outflows.

Capital and liquidity

• Repurchased 22.2 million common shares for $1.04 billion and paid $286 million in dividends to common shareholders.
• Return on common equity ("ROE") of 15%; Return on tangible common equity ("ROTCE") of 29% (a).
• Common Equity Tier 1 ("CET1") ratio - 11.5%.
• Supplementary leverage ratio ("SLR") - 6.1%.
• Average liquidity coverage ratio ("LCR") - 120%.
• Total Loss Absorbing Capacity ("TLAC") ratios exceed minimum requirements.

1. See "Supplemental information - Explanation of GAAP and Non-GAAP financial measures" on page 9 for additional information. Note: Throughout this document, sequential growth rates are unannualized.

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BNY Mellon 4Q19 Earnings Release

FULL-YEAR CONSOLIDATED FINANCIAL HIGHLIGHTS

(in millions, except per share amounts and				2019							2018				2019 vs. 2018
unless otherwise noted; not
	Results -		Notable		Results -			Results -		Notable		Results -		GAAP	Non-
meaningful - N/M)		GAAP		items (a)	Non-GAAP			GAAP		items (b)	Non-GAAP		GAAP
Fee revenue	$	13,236	$	815	$	12,421	$	12,842	$	(13)	$	12,855	3%	(3)%
Net securities (losses) gains		(18)		(25)		7			(48)		-		(48)		N/M	N/M
Total fee and other revenue (loss)		13,218		790		12,428			12,794		(13)		12,807	3	(3)
Income (loss) from consolidated investment		56		-		56			(13)		-		(13)		N/M	N/M
management funds
Net interest revenue (expense)		3,188		(70)		3,258			3,611		-		3,611	(12)	(10)
Total revenue (loss)		16,462		720		15,742			16,392		(13)		16,405		-	(4)
Provision for credit losses		(25)		-		(25)			(11)		-		(11)		N/M	N/M
Noninterest expense		10,900		113		10,787			11,211		343		10,868	(3)	(1)
Income (loss) before income taxes		5,587		607		4,980			5,192		(356)		5,548	8	(10)
Provision (benefit) for income taxes		1,120		140		980			938		(188)		1,126	19	(13)
Net income (loss)	$	4,467	$	467	$	4,000	$	4,254	$	(168)	$	4,422	5%	(10)%
Net income (loss) applicable to common
shareholders of The Bank of New York	$	4,272	$	467	$	3,805	$	4,097	$	(168)	$	4,265	4%	(11)%
Mellon Corporation
Operating leverage (c)															320 bps	(330) bps
Diluted earnings per common share	$	4.51	$	0.49	$	4.02	$	4.04	$	(0.17)	$	4.21	12%	(5)%
Average common shares and equivalents	943,109					1,007,141
outstanding - diluted (in thousands)
Pre-tax operating margin		34%				32%			32%				34%

1. Includes a gain on sale of an equity investment, severance, net securities losses and litigation expense recorded in 4Q19. Also includes a lease- related impairment and a net reduction of reserves for tax-related exposure of certain investment management funds recorded in 3Q19.
2. Includes adjustments to provisional estimates for U.S. tax legislation and other changes, severance, expenses associated with consolidating real estate and litigation expense, each recorded in 4Q18. Also includes expenses associated with consolidating real estate recorded in 2Q18 and adjustments to provisional estimates for U.S. tax legislation and other changes and litigation expense, both recorded in 3Q18.
3. Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense.

bps - basis points.

Note: See "Supplemental information - Explanation of GAAP and Non-GAAP financial measures" on page 9 for additional information.

Page - 3

BNY Mellon 4Q19 Earnings Release

INVESTMENT SERVICES BUSINESS HIGHLIGHTS

(dollars in millions, unless otherwise noted; not meaningful - N/M)		4Q19		3Q19		4Q18	4Q19 vs.
			3Q19	4Q18
Total revenue by line of business:	$	1,397					(1)%	(3)%
Asset Servicing	$	1,405	$	1,435
Pershing		570		568		558	-	2
Issuer Services		415		466		441	(11)	(6)
Treasury Services		329		312		328	5	-
Clearance and Collateral Management		280		293		278	(4)	1
Total revenue by line of business		2,991		3,044		3,040	(2)	(2)
Provision for credit losses		(5)		(15)		6	N/M	N/M
Noninterest expense		2,161		1,965		2,112	10	2
Income before taxes	$	835	$	1,094	$	922	(24)%	(9)%
Pre-tax operating margin		28%		36%		30%
Foreign exchange and other trading revenue	$	151	$	160	$	163	(6)%	(7)%
Securities lending revenue	$	40	$	39	$	43	3%	(7)%
Metrics:	$	34,238					5%	(4)%
Average loans	$	32,758	$	35,540
Average deposits	$	215,388	$	208,044	$	203,416	4%	6%
AUC/A at period end (in trillions) (current period is preliminary) (a)	$	37.1	$	35.8	$	33.1	4%	12%
Market value of securities on loan at period end (in billions) (b)	$	378	$	362	$	373	4%	1%

1. Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.5 trillion at Dec. 31, 2019, $1.4 trillion at Sept. 30, 2019 and $1.2 trillion at Dec. 31, 2018.
2. Represents the total amount of securities on loan in our agency securities lending program managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent on behalf of CIBC Mellon clients, which totaled $60 billion at Dec. 31, 2019, $66 billion at Sept. 30, 2019 and $58 billion at Dec. 31, 2018.

KEY DRIVERS

• The drivers of the total revenue variances by line of business are indicated below.
• • Asset Servicing - The year-over-year decrease primarily reflects lower net interest revenue and foreign exchange revenue, partially offset by the impact of higher equity markets. The sequential decrease primarily reflects lower net interest revenue.
  • Pershing - The year-over-year increase primarily reflects growth in client assets and accounts, partially offset by lower net interest revenue.
  • Issuer Services - Both decreases primarily reflect lower Depositary Receipts revenue. The year-over-year decrease is partially offset by higher client activity in Corporate Trust. The sequential decrease is partially offset by higher net interest revenue in Corporate Trust.
  • Treasury Services - Year-over-year, higher payment fees were offset by lower net interest revenue. The sequential increase primarily reflects higher net interest revenue and payment fees.
  • Clearance and Collateral Management - The year-over-year increase primarily reflects growth in collateral management and clearance volumes, which were mostly offset by lower net interest revenue. The sequential decrease primarily reflects lower client activity.
• Noninterest expense increased year-over-year primarily driven by continued investments in technology. The sequential increase primarily reflects higher severance expense, continued investments in technology and higher litigation expense.

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BNY Mellon 4Q19 Earnings Release

INVESTMENT MANAGEMENT BUSINESS HIGHLIGHTS

(dollars in millions, unless otherwise noted; not meaningful - N/M)		4Q19		3Q19		4Q18	4Q19 vs.
			3Q19	4Q18
Total revenue by line of business:	$	688					14%	4%
Asset Management	$	605	$	660
Wealth Management		287		285		303	1	(5)
Total revenue by line of business		975		890		963	10	1
Provision for credit losses		-		-		1	N/M	N/M
Noninterest expense		730		590		715	24	2
Income before taxes	$	245	$	300	$	247	(18)%	(1)%
Pre-tax operating margin		25%		34%		26%
Adjusted pre-tax operating margin - Non-GAAP(a)		28%		38%		29%
Metrics:	$	16,505					2%	-%
Average loans	$	16,260	$	16,485
Average deposits	$	15,195	$	14,083	$	14,893	8%	2%
AUM (in billions) (current period is preliminary) (b)	$	1,910	$	1,881	$	1,722	2%	11%
Wealth Management client assets (in billions) (current period is preliminary) (c)	$	266	$	259	$	239	3%	11%

1. Net of distribution and servicing expense. See "Supplemental information - Explanation of GAAP and Non-GAAP financial measures" on page 9 for information on this Non-GAAP measure.
2. Excludes securities lending cash management assets and assets managed in the Investment Services business.
3. Includes AUM and AUC/A in the Wealth Management business.

KEY DRIVERS

• The drivers of the total revenue variances by line of business are indicated below.
• • Asset Management - The year-over-year increase primarily reflects higher market values and the impact of hedging activities, partially offset by the cumulative AUM outflows since 4Q18. The sequential increase primarily reflects timing of performance fees, the impact of hedging activities and higher market values.
  • Wealth Management - The year-over-year decrease primarily reflects lower net interest revenue, partially offset by higher market values.
• Noninterest expense increased year-over-year primarily reflecting higher staff expense. The sequential increase primarily reflects the net reduction of the reserves for tax-related exposure of certain investment management funds recorded in 3Q19 and higher staff expense, including severance expense.

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BNY Mellon 4Q19 Earnings Release

OTHER SEGMENT primarily includes leasing operations, certain corporate treasury activities, derivatives, business exits and other corporate revenue and expense items.

(in millions)		4Q19		3Q19		4Q18
Fee revenue	$	836	$	5	$	29
Net securities (losses)		(23)		(1)		-
Total fee and other revenue		813		4		29
Net interest (expense)		(10)		(80)		(15)
Total revenue (loss)		803		(76)		14
Provision for credit losses		(3)		(1)		(7)
Noninterest expense		73		35		160
Income (loss) before taxes	$	733	$	(110)	$	(139)

KEY DRIVERS

• Fee revenue, net securities losses and net interest expense include corporate treasury and other investment activity, including hedging activity which offsets between fee revenue and net interest expense. Total revenue increased primarily reflecting the gain on the sale of an equity investment. Net interest expense decreased sequentially primarily reflecting the lease-related impairment of $70 million recorded in 3Q19.
• Noninterest expense decreased year-over-year primarily reflecting the expenses associated with relocating our corporate headquarters recorded in 4Q18 and lower severance expense. The sequential increase primarily reflects higher severance expense, partially offset by lower other staff expense.

NOTABLE ITEMS BY BUSINESS SEGMENT

Notable items by business segment				4Q19								3Q19							4Q18
(in millions)
	IS		IM	Other		Total			IS		IM		Other		Total			IS		IM		Other		Total
Fee and other revenue	$	-	$	-	$	790	$	790	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Net interest revenue		-		-		-		-			-		-		(70)		(70)			-		-		-		-
Total revenue		-		-		790		790			-		-		(70)		(70)			-		-		-		-
Total noninterest expense		119		16		51		186			-		(74)		-		(74)			110		28		131		269
Income (loss) before taxes	$	(119)	$	(16)	$	739	$	604	$	-	$	74	$	(70)	$	4	$	(110)	$	(28)	$	(131)	$	(269)

IS - Investment Services

IM - Investment Management

Page - 6

BNY Mellon 4Q19 Earnings Release

CAPITALAND LIQUIDITY

Capital and liquidity ratios		Dec. 31,		Sept. 30,		Dec. 31,
		2019		2019		2018
Consolidated regulatory capital ratios: (a)		11.5%
CET1 ratio			11.1%		10.7%
Tier 1 capital ratio		13.6		13.2		12.8
Total capital ratio		14.4		14.0		13.6
Tier 1 leverage ratio		6.6		6.5		6.6
SLR		6.1		6.0		6.0
BNY Mellon shareholders' equity to total assets ratio		10.9%		11.0%		11.2%
BNY Mellon common shareholders' equity to total assets ratio		9.9%		10.1%		10.2%
Average LCR		120%		117%		118%
Book value per common share (b)	$	42.12	$	40.75	$	38.63
Tangible book value per common share - Non-GAAP(b)	$	21.33	$	20.59	$	19.04
Common shares outstanding (in thousands)		900,683		922,199		960,426

1. Regulatory capital ratios for Dec. 31, 2019 are preliminary. For our CET1, Tier 1 capital and Total capital ratios, our effective capital ratios under the U.S. capital rules are the lower of the ratios as calculated under the Standardized and Advanced Approaches, which for the periods noted above was the Advanced Approaches.
2. Tangible book value per common share - Non-GAAP excludes goodwill and intangible assets, net of deferred tax liabilities. See "Supplemental information - Explanation of GAAP and Non-GAAP financial measures" on page 9 for information on this Non-GAAP measure.

CET1 capital totaled $18.5 billion at Dec. 31, 2019, an increase of $333 million compared with Sept. 30, 2019. The increase primarily reflects capital generated through earnings and foreign currency translation, partially offset by capital deployed through common stock repurchases and dividend payments.

NET INTEREST REVENUE

Net interest revenue		4Q19					4Q19 vs.
(dollars in millions; not meaningful - N/M)			3Q19		4Q18	3Q19	4Q18
Net interest revenue	$	815	$	730	$	885	12%	(8)%
Add: Tax equivalent adjustment		2		3		4	N/M	N/M
Net interest revenue, on a fully taxable equivalent ("FTE")	$	817	$	733	$	889	11%	(8)%
basis - Non-GAAP(a)
Net interest margin		1.09%		0.99% (b)		1.24%	10 bps	(15) bps
Net interest margin (FTE) - Non-GAAP(a)		1.09%		1.00% (b)		1.24%	9 bps	(15) bps

1. Net interest revenue (FTE) - Non-GAAP and net interest margin (FTE) - Non-GAAP include the tax equivalent adjustments on tax-exempt income which allows for comparisons 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.
2. The lease-related impairment decreased the net interest margin for 3Q19 by 10 basis points.

bps - basis points.

Net interest revenue decreased year-over-year, primarily reflecting the impact of lower interest rates on the securities portfolio and other interest-earning assets and lower noninterest-bearing deposits. This was partially offset by the benefit of lower deposit and funding rates and higher interest-bearing deposits.

The sequential increase primarily reflects the lease-related impairment of $70 million recorded in 3Q19, as well as higher deposits and an overall improvement in balance sheet mix. This was partially offset by the impact of lower rates.

Page - 7

BNY Mellon 4Q19 Earnings Release

THE BANK OF NEW YORK MELLON CORPORATION

Condensed Consolidated Income Statement

		Quarter ended					Year-to-date
(in millions)		Dec. 31,		Sept. 30,		Dec. 31,			Dec. 31,		Dec. 31,
	2019		2019		2018			2019		2018
Fee and other revenue
Investment services fees:	$	1,148					$	4,563
Asset servicing fees	$	1,152	$	1,126	$	4,608
Clearing services fees (a)		421		419		398			1,648		1,616
Issuer services fees		264		324		286			1,130		1,099
Treasury services fees		147		140		139			559		554
Total investment services fees (a)		1,980		2,035		1,949			7,900		7,877
Investment management and performance fees (a)		883		832		884			3,389		3,647
Foreign exchange and other trading revenue		168		150		181			654		732
Financing-related fees		46		49		50			196		207
Distribution and servicing		34		33		35			129		139
Investment and other income		860		30		47			968		240
Total fee revenue		3,971		3,129		3,146			13,236		12,842
Net securities (losses) gains		(25)		(1)		-			(18)		(48)
Total fee and other revenue		3,946		3,128		3,146			13,218		12,794
Operations of consolidated investment management funds		17							57
Investment income			4		(24)				(12)
Interest of investment management fund note holders		-		1		-			1		1
Income from consolidated investment management funds		17		3		(24)			56		(13)
Net interest revenue		1,721							7,548
Interest revenue			1,942		1,864				6,432
Interest expense		906		1,212		979			4,360		2,821
Net interest revenue		815		730		885			3,188		3,611
Total revenue		4,778		3,861		4,007			16,462		16,392
Provision for credit losses		(8)		(16)		-			(25)		(11)
Noninterest expense		1,639							6,063
Staff			1,479		1,602				6,145
Professional, legal and other purchased services		367		316		383			1,345		1,334
Software and equipment		326		309		300			1,222		1,062
Net occupancy		151		138		196			564		630
Sub-custodian and clearing		119		111		115			450		450
Distribution and servicing		92		97		95			374		406
Business development		65		47		64			213		228
Bank assessment charges		32		31		22			125		170
Amortization of intangible assets		28		30		35			117		180
Other		145		32		175			427		606
Total noninterest expense		2,964		2,590		2,987			10,900		11,211
Income		1,822							5,587
Income before income taxes			1,287		1,020				5,192
Provision for income taxes		373		246		150			1,120		938
Net income		1,449		1,041		870			4,467		4,254
Net (income) loss attributable to noncontrolling interests (includes $(9), $(3), $11,		(9)		(3)		11			(26)		12
$(26) and $12 related to consolidated investment management funds, respectively)
Net income applicable to shareholders of The Bank of New York Mellon		1,440		1,038		881			4,441		4,266
Corporation
Preferred stock dividends		(49)		(36)		(49)			(169)		(169)
Net income applicable to common shareholders of The Bank of New York	$	1,391	$	1,002	$	832	$	4,272	$	4,097
Mellon Corporation

1. In 1Q19, we reclassified certain platform-related fees to clearing services fees from investment management and performance fees. Prior periods have been reclassified.

Earnings per share applicable to the common shareholders of The Bank of New York Mellon Corporation

(in dollars)

	Quarter ended		Year-to-date
Dec. 31,	Sept. 30,	Dec. 31,	Dec. 31,	Dec. 31,
2019	2019	2018	2019	2018

Basic	$	1.52	$	1.07	$	0.84	$	4.53	$	4.06
Diluted	$	1.52	$	1.07	$	0.84	$	4.51	$	4.04

Page - 8

BNY Mellon 4Q19 Earnings Release

SUPPLEMENTAL INFORMATION - EXPLANATION OF GAAPAND NON-GAAP FINANCIAL MEASURES

BNY Mellon has included in this Earnings Release certain Non-GAAP financial measures on a tangible basis as a supplement to GAAP information, which exclude goodwill and intangible assets, net of deferred tax liabilities. BNY Mellon believes that the return on tangible common equity is additional useful information for investors because it presents a measure of those assets that can generate income, and the tangible book value per common share is additional useful information because it presents the level of tangible assets in relation to shares of common stock outstanding.

BNY Mellon has presented revenue measures excluding notable items, including the gain on the sale of an equity investment, a lease-related impairment, the impact of U.S. tax legislation on our investments in renewable energy and investment securities losses related to the sale of certain securities. Expense measures, excluding notable items, including severance, litigation, a net reduction of reserves for tax-related exposure of certain investment management funds, and expenses associated with the consolidating real estate are also presented. Litigation expense represents accruals for loss contingencies that are both probable and reasonably estimable, but exclude standard business-related legal fees. Income before tax measures, excluding the notable items mentioned above, as well the adjustments to provisional estimates for U.S. tax legislation and other changes, are provided. In addition, operating leverage, operating margins and diluted earnings per share, excluding the notable items impacting revenue, expense and income tax items mentioned above are adjusted to permit investors to view the financial measures on a basis consistent with how management views the businesses.

BNY Mellon has also included the operating margin for the Investment Management business net of distribution and servicing expense that was passed to third parties who distribute or service our managed funds. BNY Mellon believes that this measure is useful when evaluating the performance of the Investment Management business relative to industry competitors.

For the reconciliations of these Non-GAAP measures, see "Supplemental Information - Explanation of GAAP and Non- GAAP Financial Measures" in the Financial Supplement available at www.bnymellon.com.

CAUTIONARY STATEMENT

A number of statements (i) in this Earnings Release, (ii) in our presentations and (iii) in the responses to questions on our conference call discussing our quarterly results and other public events may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 including statements about our capital plans, strategic priorities, financial goals, organic growth, performance, organizational quality and efficiency, investments, including in technology and product development, resiliency, capabilities, revenue, net interest revenue, fees, expenses, cost discipline, sustainable growth, company management, deposits, interest rates and yield curves, securities portfolio, taxes, business opportunities, divestments, volatility, preliminary business metrics and regulatory capital ratios and statements regarding our aspirations, as well as our overall plans, strategies, goals, objectives, expectations, outlooks, estimates, intentions, targets, opportunities, focus and initiatives. These statements may be expressed in a variety of ways, including the use of future or present tense language. Words such as "estimate," "forecast," "project," "anticipate," "likely," "target," "expect," "intend," "continue," "seek," "believe," "plan," "goal," "could," "should," "would," "may," "might," "will," "strategy," "synergies," "opportunities," "trends," "future" and words of similar meaning signify forward-looking statements. These statements and other forward-looking statements contained in other public disclosures of The Bank of New York Mellon Corporation which make reference to the cautionary factors described in this Earnings Release are based upon current beliefs and expectations and are subject to significant risks and uncertainties (some of which are beyond BNY Mellon's control). Actual results may differ materially from those expressed or implied as a result of these risks and uncertainties, including, but not limited to, the risk factors and other uncertainties set forth in BNY Mellon's Annual Report on Form 10-K for the year ended Dec. 31, 2018 and BNY Mellon's other filings with the Securities and Exchange Commission. Preliminary business metrics and regulatory capital ratios are subject to change, possibly materially, as BNY Mellon completes its Annual Report on Form 10-K for the year ended Dec. 31, 2019. All forward- looking statements in this Earnings Release speak only as of Jan. 16, 2020, and BNY Mellon undertakes no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events.

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BNY Mellon 4Q19 Earnings Release

ABOUT BNY MELLON

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries. As of Dec. 31, 2019, BNY Mellon had $37.1 trillion in assets under custody and/or administration, and $1.9 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.

CONFERENCE CALL INFORMATION

Todd Gibbons, interim Chief Executive Officer, and Mike Santomassimo, Chief Financial Officer, will host a conference call and simultaneous live audio webcast at 8:00 a.m. EST on Jan. 16, 2020. This conference call and audio webcast will include forward-looking statements and may include other material information.

Investors and analysts wishing to access the conference call and audio webcast may do so by dialing [phone] (U.S.) or [phone] (International), and using the passcode: 807070, or by logging onto www.bnymellon.com/ investorrelations. Earnings materials will be available at www.bnymellon.com/investorrelations beginning at approximately 6:30 a.m. EST on Jan. 16, 2020. Replays of the conference call and audio webcast will be available beginning Jan. 16, 2020 at approximately 2:00 p.m. EST through Feb. 15, 2020 by dialing [phone] (U.S.) or

1. 457-0820(International), and using the passcode: 5375940. The archived version of the conference call and audio webcast will also be available at www.bnymellon.com/investorrelations for the same time period.

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