Bank of New York Mellon : Quarterly Financial Supplement 4Q 2019 (PDF)

The Bank of New York Mellon Corporation

Financial Supplement Fourth Quarter 2019

Table of Contents

Consolidated Results	Page
Consolidated Financial Highlights	3
Condensed Consolidated Income Statement	4
Condensed Consolidated Balance Sheet	5
Fee and Other Revenue	6
Average Balances and Interest Rates	7
Capital and Liquidity	8
Business Segment Results
Investment Services Business	9
Investment Management Business	11
AUM by Product, AUM Flows and Wealth Management Client Assets	12
Other Segment	13
Other
Investment Securities Portfolio	14
Allowance for Credit Losses and Nonperforming Assets	15
Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures	16

THE BANK OF NEW YORK MELLON CORPORATION

CONSOLIDATED FINANCIAL HIGHLIGHTS

(dollars in millions, except per common share amounts, or unless												4Q19 vs.							FY19 vs.
otherwise noted)		4Q19		3Q19		2Q19		1Q19		4Q18	3Q19	4Q18			FY19		FY18		FY18
Selected income statement data				3,129		3,105		3,031		3,146
Fee revenue	$	3,971	$	$	$	$		27 %	26 %	$	13,236	$	12,842	3 %
Net securities (losses) gains		(25)		(1)		7		1		-	N/M	N/M			(18)		(48)		N/M
Fee and other revenue		3,946		3,128		3,112		3,032		3,146		26	25			13,218		12,794	3
Income (loss) from consolidated investment management funds		17		3		10		26		(24)		N/M	N/M			56		(13)		N/M
Net interest revenue		815		730		802		841		885		12	(8)			3,188		3,611	(12)
Total revenue		4,778		3,861		3,924		3,899		4,007		24	19			16,462		16,392		-
Provision for credit losses		(8)		(16)		(8)		7		-	N/M	N/M			(25)		(11)		N/M
Noninterest expense		2,964		2,590		2,647		2,699		2,987		14	(1)			10,900		11,211	(3)
Income before income taxes		1,822		1,287		1,285		1,193		1,020		42	79			5,587		5,192	8
Provision for income taxes		373		246		264		237		150		52	149			1,120		938	19
Net income	$	1,449	$	1,041	$	1,021	$	956	$	870		39 %	67 %	$	4,467	$	4,254	5 %
Net income applicable to common shareholders of The Bank of	$	1,391	$	1,002	$	969	$	910	$	832		39 %	67 %	$	4,272	$	4,097	4 %
New York Mellon Corporation
Diluted earnings per common share	$	1.52	$	1.07	$	1.01	$	0.94	$	0.84		42 %	81 %	$	4.51	$	4.04	12 %
Average common shares and equivalents outstanding - diluted (in		914,739		935,677		953,928		965,960		988,650		(2)%	(7)%			943,109	1,007,141	(6)%
thousands)
Financial ratios(Quarterly returns are annualized)
Pre-tax operating margin		38%		33%		33%		31%		25%						34%		32%
Return on common equity (a)		14.6%		10.6%		10.4%		10.0%		8.7%						11.4%		10.8%
Return on tangible common equity - Non-GAAP(a)		29.3%		21.4%		21.2%		20.7%		17.9%						23.2%		22.5%
Non-U.S. revenue as a percentage of total revenue		31%		37%		36%		36%		36%						35%		37%
Period end				35.8		35.5		34.5		33.1
Assets under custody and/or administration ("AUC/A") (in trillions) (b)	$	37.1	$	$	$	$		4 %	12 %
Assets under management ("AUM") (in trillions)	$	1.91	$	1.88	$	1.84	$	1.84	$	1.72		2 %	11 %
Full-time employees		48,400		48,700		49,100		49,800		51,300		(1)%	(6)%
Book value per common share (a)	$	42.12	$	40.75	$	40.30	$	39.36	$	38.63
Tangible book value per common share - Non-GAAP(a)	$	21.33	$	20.59	$	20.45	$	19.74	$	19.04
Cash dividends per common share	$	0.31	$	0.31	$	0.28	$	0.28	$	0.28
Common dividend payout ratio		20%		29%		28%		30%		33%
Closing stock price per common share	$	50.33	$	45.21	$	44.15	$	50.43	$	47.07
Market capitalization	$	45,331	$	41,693	$	41,619	$	48,288	$	45,207
Common shares outstanding (in thousands)		900,683		922,199		942,662		957,517		960,426
Capital ratios at period end(c)				11.1%		11.1%		11.1%		10.7%
Common Equity Tier 1 ("CET1") ratio		11.5%
Tier 1 capital ratio		13.6%		13.2%		13.2%		13.2%		12.8%
Total capital ratio		14.4%		14.0%		14.0%		14.0%		13.6%
Supplementary leverage ratio ("SLR")		6.1%		6.0%		6.3%		6.3%		6.0%

1. Non-GAAPinformation, 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.
2. Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.5 trillion at Dec. 31, 2019, $1.4 trillion at Sept. 30, 2019 and June 30, 2019, $1.3 trillion at March 31, 2019 and $1.2 trillion at Dec. 31, 2018.
3. Regulatory capital ratios for Dec. 31, 2019 are preliminary. All risk-based capital ratios are presented using Advanced Approaches.

N/M - Not meaningful.

3

THE BANK OF NEW YORK MELLON CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENT

(dollars in millions, except per share amounts; common shares in												4Q19 vs.							FY19 vs.
thousands)		4Q19		3Q19		2Q19		1Q19		4Q18	3Q19	4Q18			FY19		FY18		FY18
Revenue
Investment services fees:
Asset servicing fees	$	1,148	$	1,152	$	1,141	$	1,122	$	1,126		- %	2 %	$	4,563	$	4,608	(1)%
Clearing services fees (a)		421		419		410		398		398		-	6			1,648		1,616	2
Issuer services fees		264		324		291		251		286		(19)	(8)			1,130		1,099	3
Treasury services fees		147		140		140		132		139		5	6			559		554	1
Total investment services fees (a)		1,980		2,035		1,982		1,903		1,949		(3)	2			7,900		7,877		-
Investment management and performance fees (a)		883		832		833		841		884		6	-			3,389		3,647	(7)
Foreign exchange and other trading revenue		168		150		166		170		181		12	(7)			654		732	(11)
Financing-related fees		46		49		50		51		50		(6)	(8)			196		207	(5)
Distribution and servicing		34		33		31		31		35		3	(3)			129		139	(7)
Investment and other income		860		30		43		35		47		N/M	N/M			968		240		N/M
Total fee revenue		3,971		3,129		3,105		3,031		3,146		27	26			13,236		12,842	3
Net securities (losses) gains		(25)		(1)		7		1		-	N/M	N/M			(18)		(48)		N/M
Total fee and other revenue		3,946		3,128		3,112		3,032		3,146		26	25			13,218		12,794	3
Income (loss) from consolidated investment management funds		17		3		10		26		(24)		N/M	N/M			56		(13)		N/M
Net interest revenue		815		730		802		841		885		12	(8)			3,188		3,611	(12)
Total revenue		4,778		3,861		3,924		3,899		4,007		24	19			16,462		16,392		-
Provision for credit losses		(8)		(16)		(8)		7		-	N/M	N/M			(25)		(11)		N/M
Noninterest expense
Staff		1,639		1,479		1,421		1,524		1,602		11	2			6,063		6,145	(1)
Professional, legal and other purchased services		367		316		337		325		383		16	(4)			1,345		1,334	1
Software and equipment		326		309		304		283		300		6	9			1,222		1,062	15
Net occupancy		151		138		138		137		196		9	(23)			564		630	(10)
Sub-custodian and clearing		119		111		115		105		115		7	3			450		450		-
Distribution and servicing		92		97		94		91		95		(5)	(3)			374		406	(8)
Business development		65		47		56		45		64		38	2			213		228	(7)
Bank assessment charges		32		31		31		31		22		3	45			125		170	(26)
Amortization of intangible assets		28		30		30		29		35		(7)	(20)			117		180	(35)
Other		145		32		121		129		175		353	(17)			427		606	(30)
Total noninterest expense		2,964		2,590		2,647		2,699		2,987		14	(1)			10,900		11,211	(3)
Income before income taxes		1,822		1,287		1,285		1,193		1,020		42	79			5,587		5,192	8
Provision for income taxes		373		246		264		237		150		52	149			1,120		938	19
Net income		1,449		1,041		1,021		956		870		39	67			4,467		4,254	5
Net (income) loss attributable to noncontrolling interests		(9)		(3)		(4)		(10)		11		N/M	N/M			(26)		12		N/M
Preferred stock dividends		(49)		(36)		(48)		(36)		(49)		N/M	N/M			(169)		(169)		-
Net income applicable to common shareholders of The Bank of New	$	1,391	$	1,002	$	969	$	910	$	832		39 %	67 %	$	4,272	$	4,097	4 %
York Mellon Corporation
Average common shares and equivalents outstanding: Basic		911,324		933,264		951,281		962,397		984,343		(2)%	(7)%			939,623	1,002,922	(6)%
Diluted		914,739		935,677		953,928		965,960		988,650		(2)%	(7)%			943,109	1,007,141	(6)%
Earnings per common share: Basic	$	1.52	$	1.07	$	1.01	$	0.94	$	0.84		42 %	81 %	$	4.53	$	4.06	12 %
Diluted	$	1.52	$	1.07	$	1.01	$	0.94	$	0.84		42 %	81 %	$	4.51	$	4.04	12 %

1. In 1Q19, we reclassified certain platform-related fees to clearing services fees from investment management and performance fees. Prior periods have been reclassified. N/M - Not meaningful.

4

THE BANK OF NEW YORK MELLON CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

				2019						2018
(in millions)		Dec. 31		Sept. 30		June 30		March 31			Dec. 31
Assets
Cash and due from banks	$	4,830	$	6,718	$	5,556	$	5,980	$	5,864
Interest-bearing deposits with the Federal Reserve and other central banks		95,042		73,811		69,700		60,699			67,988
Interest-bearing deposits with banks		14,811		15,417		15,491		13,681			14,148
Federal funds sold and securities purchased under resale agreements		30,182		43,723		61,201		40,158			46,795
Securities		123,033		122,340		120,142		117,504			119,791
Trading assets		13,571		10,180		8,629		6,868			7,035
Loans		54,953		54,881		52,396		53,487			56,564
Allowance for loan losses		(122)		(127)		(146)		(146)			(146)
Net loans		54,831		54,754		52,250		53,341			56,418
Premises and equipment (a)		3,625		3,149		2,970		3,010			1,832
Accrued interest receivable		624		596		658		651			671
Goodwill		17,386		17,248		17,337		17,367			17,350
Intangible assets		3,107		3,124		3,160		3,193			3,220
Other assets		20,221		21,727		23,737		23,228			21,298
Subtotal assets of operations		381,263		372,787		380,831		345,680			362,410
Assets of consolidated investment management funds, at fair value		245		381		337		452			463
Total assets	$	381,508	$	373,168	$	381,168	$	346,132	$	362,873
Liabilities
Deposits	$	259,466	$	249,660	$	252,877	$	222,382	$	238,778
Federal funds purchased and securities sold under repurchase agreements		11,401		11,796		11,757		11,761			14,243
Trading liabilities		4,841		4,756		3,768		3,892			3,479
Payables to customers and broker-dealers		18,758		18,364		18,946		19,310			19,731
Commercial paper		3,959		3,538		8,894		2,773			1,939
Other borrowed funds		599		820		1,921		3,932			3,227
Accrued taxes and other expenses		5,642		5,081		5,045		4,686			5,669
Other liabilities (a)		7,612		9,796		7,916		8,050			5,774
Long-term debt		27,501		27,872		28,203		27,874			29,163
Subtotal liabilities of operations		339,779		331,683		339,327		304,660			322,003
Liabilities of consolidated investment management funds, at fair value		1		15		6		3			2
Total liabilities		339,780		331,698		339,333		304,663			322,005
Temporary equity
Redeemable noncontrolling interests		143		147		136		122			129
Permanent equity
Preferred stock		3,542		3,542		3,542		3,542			3,542
Common stock		14		14		14		14			14
Additional paid-in capital		27,515		27,471		27,406		27,349			27,118
Retained earnings		31,894		30,789		30,081		29,382			28,652
Accumulated other comprehensive loss, net of tax		(2,638)		(2,893)		(2,688)		(2,990)			(3,171)
Less: Treasury stock, at cost		(18,844)		(17,803)		(16,822)		(16,072)			(15,517)
Total The Bank of New York Mellon Corporation shareholders' equity		41,483		41,120		41,533		41,225			40,638
Nonredeemable noncontrolling interests of consolidated investment management funds		102		203		166		122			101
Total permanent equity		41,585		41,323		41,699		41,347			40,739
Total liabilities, temporary equity and permanent equity	$	381,508	$	373,168	$	381,168	$	346,132	$	362,873

1. In 1Q19, we adopted new accounting guidance included in Accounting Standards Update 2016-02, Leases, prospectively, which required the recognition of right-of-use assets (included in premises and equipment) and lease liabilities (included in other liabilities).

5

THE BANK OF NEW YORK MELLON CORPORATION

FEE AND OTHER REVENUE

				3Q19		2Q19		1Q19		4Q18	4Q19 vs.					FY18		FY19 vs.
(dollars in millions)		4Q19					3Q19	4Q18			FY19			FY18
Investment services fees:
Asset servicing fees	$	1,104	$	1,109	$	1,097	$	1,074	$	1,079		- %	2%	$	4,384	$	4,388		- %
Securities lending revenue		44		43		44		48		47		2	(6)			179		220	(19)
Clearing services fees (a)		421		419		410		398		398		-	6			1,648		1,616	2
Issuer services fees		264		324		291		251		286		(19)	(8)			1,130		1,099	3
Treasury services fees		147		140		140		132		139		5	6			559		554	1
Total investment services fees (a)		1,980		2,035		1,982		1,903		1,949		(3)	2			7,900		7,877		-
Investment management and performance fees (b)
Investment management fee		835		830		831		810		830		1	1			3,306		3,503	(6)
Performance fees		48		2		2		31		54		N/M	N/M			83		144	(42)
Total investment management and performance fees (a)(c)		883		832		833		841		884		6	-			3,389		3,647	(7)
Foreign exchange and other trading revenue:
Foreign exchange		138		129		150		160		159		7	(13)			577		663	(13)
Other trading revenue		30		21		16		10		22		N/M	N/M			77		69		N/M
Total foreign exchange and other trading revenue		168		150		166		170		181		12	(7)			654		732	(11)
Financing-related fees		46		49		50		51		50		(6)	(8)			196		207	(5)
Distribution and servicing		34		33		31		31		35		3	(3)			129		139	(7)
Investment and other income:
Corporate/bank-owned life insurance		43		33		32		30		42		N/M	N/M			138		145		N/M
Expense reimbursements from joint venture		20		21		19		19		19		N/M	N/M			79		71		N/M
Asset-related gains		815		2		1		1		2		N/M	N/M			819		70		N/M
Seed capital gains (losses) (b)		4		-		8		2		(8)		N/M	N/M			14		3		N/M
Other (loss)		(22)		(26)		(17)		(17)		(8)		N/M	N/M			(82)		(49)		N/M
Total investment and other income (b)		860		30		43		35		47		N/M	N/M			968		240		N/M
Total fee revenue		3,971		3,129		3,105		3,031		3,146		27	26			13,236		12,842	3
Net securities (losses) gains		(25)		(1)		7		1		-	N/M	N/M			(18)		(48)		N/M
Total fee and other revenue	$	3,946	$	3,128	$	3,112	$	3,032	$	3,146		26 %	25%	$	13,218	$	12,794	3 %

1. In 1Q19, we reclassified certain platform-related fees to clearing services fees from investment management and performance fees. Prior periods have been reclassified.
2. Excludes seed capital gains related to consolidated investment management funds, which are reflected in operations of consolidated investment management funds.
3. On a constant currency basis (Non-GAAP), investment management and performance fees were essentially unchanged compared with 4Q18. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.

N/M - Not meaningful.

6

THE BANK OF NEW YORK MELLON CORPORATION

AVERAGE BALANCES AND INTEREST RATES

		4Q19			3Q19				2Q19			1Q19				4Q18
		Average	Average		Average	Average			Average	Average		Average	Average			Average	Average
(dollars in millions; average rates are annualized)		balance	rate		balance	rate			balance	rate		balance	rate			balance	rate
Assets
Interest-earning assets:																	0.89%
Interest-bearing deposits with the Federal Reserve and other central banks	$	61,627	0.60%	$	60,030	0.67%		$	61,756	0.72%	$	63,583	0.87%	$	63,916
Interest-bearing deposits with banks (primarily foreign banks)		15,788	1.63		15,324	1.89			13,666	1.87		13,857	1.85			14,666	1.67
Federal funds sold and securities purchased under resale agreements (a)		38,846	4.62		40,816	6.42			38,038	5.99		28,968	6.63			28,843	5.98
Margin loans		11,609	3.25		10,303	4.02			10,920	4.36		12,670	4.34			13,369	4.08
Non-margin loans:																	3.73
Domestic offices		29,690	3.36		29,285	2.75	(b)		29,492	3.86		28,177	3.85			29,576
Foreign offices		11,418	2.70		11,247	2.97			9,961	3.29		10,511	3.32			10,889	3.10
Total non-margin loans		41,108	3.18		40,532	2.81	(b)		39,453	3.71		38,688	3.70			40,465	3.56
Securities:																	2.14
U.S. government obligations		18,444	2.08		19,315	2.11			18,870	2.19		23,597	2.22			24,531
U.S. government agency obligations		67,494	2.36		67,235	2.49			66,445	2.58		64,867	2.63			64,496	2.54
State and political subdivisions (c)		1,134	3.03		1,217	3.05			1,735	2.89		2,206	2.71			2,263	2.63
Other securities (c)		35,242	1.64		33,729	1.75			30,770	2.04		28,647	2.13			27,614	1.91
Trading securities (c)		6,695	2.41		5,653	2.80			5,764	2.72		5,102	2.91			5,543	2.77
Total securities (c)		129,009	2.13		127,149	2.25			123,584	2.40		124,419	2.45			124,447	2.33
Total interest-earning assets (c)	$	297,987	2.30%	$	294,154	2.63% (b)	$	287,417	2.74%	$	282,185	2.75%	$	285,706	2.60%
Noninterest-earning assets		56,354			56,525				54,967			53,980				52,885
Total assets	$	354,341		$	350,679			$	342,384		$	336,165		$	338,591
Liabilities and equity
Interest-bearing liabilities:
Interest-bearing deposits:																	1.19%
Domestic offices	$	87,162	0.98%	$	82,663	1.28%		$	74,180	1.36%	$	70,562	1.29%	$	72,929
Foreign offices		95,262	0.49		94,738	0.71			93,365	0.78		89,317	0.76			88,734	0.59
Total interest-bearing deposits		182,424	0.73		177,401	0.98			167,545	1.04		159,879	0.99			161,663	0.86
Federal funds purchased and securities sold under repurchase		12,668	9.11		13,432	13.08			11,809	12.64		11,922	11.26			10,980	10.95
agreements (a)
Trading liabilities		1,504	2.25		1,371	2.33			1,735	2.47		1,305	2.25			1,330	1.86
Other borrowed funds		709	2.83		1,148	3.24			2,455	3.36		3,305	2.87			2,903	2.44
Commercial paper		1,792	1.66		3,796	2.26			2,957	2.43		1,377	2.44			353	2.41
Payables to customers and broker-dealers		15,178	1.07		15,440	1.52			15,666	1.76		16,108	1.76			15,727	1.61
Long-term debt		28,117	3.09		28,386	3.24			27,681	3.45		28,254	3.52			28,201	3.29
Total interest-bearing liabilities	$	242,392	1.48%	$	240,974	1.99%		$	229,848	2.03%	$	222,150	1.96%	$	221,157	1.75%
Total noninterest-bearing deposits		49,632			49,027				52,956			54,583				58,972
Other noninterest-bearing liabilities		20,681			19,280				18,362			18,628				16,754
Total The Bank of New York Mellon Corporation shareholders' equity		41,384			41,139				41,029			40,628				41,428
Noncontrolling interests		252			259				189			176				280
Total liabilities and equity	$	354,341		$	350,679			$	342,384		$	336,165		$	338,591
Net interest margin			1.09%			0.99% (b)			1.12%			1.20%				1.24%
Net interest margin (FTE) - Non-GAAP(d)			1.09%			1.00% (b)			1.12%			1.20%				1.24%

1. Includes the average impact of offsetting under enforceable netting agreements of approximately $60 billion for 4Q19, $68 billion for 3Q19, $51 billion for 2Q19, $44 billion for 1Q19 and $43 billion for 4Q18. On a Non-GAAP basis, excluding the impact of offsetting, the yield on federal funds sold and securities purchased under resale agreements would have been 1.82% for 4Q19, 2.42% for 3Q19, 2.57% for 2Q19, 2.63% for 1Q19 and 2.41% for 4Q18. On a Non-GAAP basis, excluding the impact of offsetting, the rate on federal funds purchased and securities sold under repurchase agreements would have been 1.59% for 4Q19, 2.17% for 3Q19, 2.39% for 2Q19, 2.40% for 1Q19 and 2.24% for 4Q18. We believe providing the rates excluding the impact of netting is useful to investors as it is more reflective of the actual rates earned and paid.
2. 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.
3. Average rates were calculated on an FTE basis, at tax rates of approximately 21%.
4. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.

7

THE BANK OF NEW YORK MELLON CORPORATION

CAPITAL AND LIQUIDITY

				2019						2018
(dollars in millions)		Dec. 31		Sept. 30		June 30		March 31			Dec. 31
Consolidated regulatory capital ratios (a)
Standardized Approach:
CET1 capital	$	18,529	$	18,196	$	18,534	$	18,156	$	17,567
Tier 1 capital		21,985		21,677		22,015		21,639			21,044
Total capital		23,438		23,145		23,500		23,136			22,536
Risk-weighted assets		147,283		148,399		149,226		151,101			149,618
CET1 ratio		12.6 %		12.3%		12.4%		12.0%			11.7%
Tier 1 capital ratio		14.9		14.6		14.8		14.3			14.1
Total capital ratio		15.9		15.6		15.7		15.3			15.1
Advanced Approaches:
CET1 capital	$	18,529	$	18,196	$	18,534	$	18,156	$	17,567
Tier 1 capital		21,985		21,677		22,015		21,639			21,044
Total capital		23,222		22,921		23,300		22,941			22,349
Risk-weighted assets		161,105		164,172		166,570		163,618			164,671
CET1 ratio		11.5 %		11.1%		11.1%		11.1%			10.7%
Tier 1 capital ratio		13.6		13.2		13.2		13.2			12.8
Total capital ratio		14.4		14.0		14.0		14.0			13.6
Tier 1 leverage ratio		6.6 %		6.5%		6.8%		6.8%			6.6%
SLR:
Leverage exposure	$	362,479	$	359,023	$	350,747	$	344,829	$	347,943
SLR		6.1 %		6.0%		6.3%		6.3%			6.0%
Average liquidity coverage ratio		120 %		117%		117%		118%			118%

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.

8

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT SERVICES BUSINESS

												4Q19 vs.							FY19 vs.
(dollars in millions)		4Q19		3Q19		2Q19		1Q19		4Q18	3Q19	4Q18			FY19		FY18		FY18
Revenue:
Investment services fees:
Asset servicing fees (ex. securities lending revenue) (a)	$	1,084	$	1,093	$	1,080	$	1,059	$	1,063		(1)%	2 %	$	4,316	$	4,322		- %
Securities lending revenue		40		39		40		44		43		3	(7)			163		198	(18)
Clearing services fees (b)		421		419		411		398		398		-	6			1,649		1,615	2
Issuer services fees		264		324		291		251		286		(19)	(8)			1,130		1,099	3
Treasury services fees		147		139		140		132		139		6	6			558		553	1
Total investment services fees (b)		1,956		2,014		1,962		1,884		1,929		(3)	1			7,816		7,787		-
Foreign exchange and other trading revenue		151		160		153		157		163		(6)	(7)			621		665	(7)
Other (b)(c)		115		117		112		113		121		(2)	(5)			457		474	(4)
Total fee and other revenue		2,222		2,291		2,227		2,154		2,213		(3)	-			8,894		8,926		-
Net interest revenue		769		753		775		796		827		2	(7)			3,093		3,372	(8)
Total revenue		2,991		3,044		3,002		2,950		3,040		(2)	(2)			11,987		12,298	(3)
Provision for credit losses		(5)		(15)		(4)		8		6		N/M	N/M			(16)		1		N/M
Noninterest expense (ex. amortization of intangible assets)		2,142		1,944		1,934		1,949		2,090		10	2			7,969		7,929	1
Amortization of intangible assets		19		21		20		20		22		(10)	(14)			80		129	(38)
Total noninterest expense		2,161		1,965		1,954		1,969		2,112		10	2			8,049		8,058		-
Income before taxes	$	835	$	1,094	$	1,052	$	973	$	922		(24)%	(9)%	$	3,954	$	4,239	(7)%
Pre-tax operating margin		28%		36%		35%		33%		30%						33%		34%
Total revenue by line of business:
Asset Servicing	$	1,397	$	1,405	$	1,391	$	1,407	$	1,435		(1)%	(3)%	$	5,600	$	5,932	(6)%
Pershing		570		568		564		554		558		-	2			2,256		2,255		-
Issuer Services		415		466		446		396		441		(11)	(6)			1,723		1,743	(1)
Treasury Services		329		312		317		317		328		5	-			1,275		1,302	(2)
Clearance and Collateral Management		280		293		284		276		278		(4)	1			1,133		1,066	6
Total revenue by line of business	$	2,991	$	3,044	$	3,002	$	2,950	$	3,040		(2)%	(2)%	$	11,987	$	12,298	(3)%

1. Asset servicing fees include the fees from the Clearance and Collateral Management business.
2. In 1Q19, we reclassified certain platform-related fees to clearing services fees from investment management and performance fees. Prior periods have been reclassified.
3. Other revenue includes investment management fees, financing-related fees, distribution and servicing revenue, securities gains and losses and investment and other income. N/M - Not meaningful.

9

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT SERVICES BUSINESS

												4Q19 vs.								FY19 vs.
(dollars in millions, unless otherwise noted)		4Q19		3Q19		2Q19		1Q19		4Q18	3Q19	4Q18			FY19		FY18	FY18
Average loans	$	34,238	$	32,758	$	32,287	$	33,171	$	35,540		5%		(4)%		$	33,115	$	36,931		(10)%
Average assets	$	277,956	$	269,784	$	264,639	$	255,891	$	262,584		3%		6%	$	267,135	$	262,747		2 %
Average deposits	$	215,388	$	208,044	$	201,146	$	195,082	$	203,416		4%		6%	$	204,979	$	203,279		1 %
AUC/A at period end (in trillions) (a)(b)	$	37.1	$	35.8	$	35.5	$	34.5	$	33.1		4%		12%
Market value of securities on loan at period end (in billions) (c)	$	378	$	362	$	369	$	377	$	373		4%		1%
Pershing
Average active clearing accounts (U.S. platform) (in thousands)		6,340		6,283		6,254		6,169		6,125		1%		4%
Average long-term mutual fund assets (U.S. platform)	$	573,475	$	547,522	$	532,384	$	507,606	$	489,491		5%		17%
Average investor margin loans (U.S. platform)	$	9,420	$	9,222	$	9,440	$	10,093	$	10,921		2%		(14)%
Clearance and Collateral Management
Average tri-party collateral management balances (in billions)	$	3,562	$	3,550	$	3,400	$	3,266	$	3,181		-%		12%

1. Dec. 31, 2019 information is preliminary.
2. Includes the AUC/A of CIBC Mellon of $1.5 trillion at Dec. 31, 2019, $1.4 trillion at Sept. 30, 2019 and June 30, 2019, $1.3 trillion at March 31, 2019 and $1.2 trillion at Dec. 31, 2018.
3. Represents the total amount of securities on loan in our agency securities lending program managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent on behalf of CIBC Mellon clients, which totaled $60 billion at Dec. 31, 2019, $66 billion at Sept. 30, 2019, $64 billion at June 30, 2019, $62 billion at March 31, 2019 and $58 billion at Dec.31, 2018.

10

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT MANAGEMENT BUSINESS

												4Q19 vs.							FY19 vs.
(dollars in millions)		4Q19		3Q19		2Q19		1Q19		4Q18	3Q19	4Q18			FY19		FY18		FY18
Revenue:
Investment management fees (a)	$	831	$	826	$	827	$	806	$	826		1 %	1 %	$	3,290	$	3,488	(6)%
Performance fees		48		2		2		31		54		N/M	(11)			83		144	(42)
Investment management and performance fees (b)		879		828		829		837		880		6	-			3,373		3,632	(7)
Distribution and servicing		44		45		44		45		45		(2)	(2)			178		190	(6)
Other (a)		(4)		(40)		(23)		(18)		(35)		N/M	N/M			(85)		(41)		N/M
Total fee and other revenue (a)		919		833		850		864		890		10	3			3,466		3,781	(8)
Net interest revenue		56		57		67		75		73		(2)	(23)			255		303	(16)
Total revenue		975		890		917		939		963		10	1			3,721		4,084	(9)
Provision for credit losses		-		-		(2)		1		1		N/M	N/M			(1)		3		N/M
Noninterest expense (ex. amortization of intangible assets)		721		580		645		660		702		24	3			2,606		2,767	(6)
Amortization of intangible assets		9		10		9		9		13		(10)	(31)			37		51	(27)
Total noninterest expense		730		590		654		669		715		24	2			2,643		2,818	(6)
Income before taxes	$	245	$	300	$	265	$	269	$	247		(18)%	(1)%	$	1,079	$	1,263	(15)%
Pre-tax operating margin		25%		34%		29%		29%		26%						29%		31%
Adjusted pre-tax operating margin - Non-GAAP(c)		28%		38%		32%		32%		29%						32%		34%
Total revenue by line of business:
Asset Management	$	688	$	605	$	618	$	637	$	660		14 %	4 %	$	2,548	$	2,836	(10)%
Wealth Management		287		285		299		302		303		1	(5)			1,173		1,248	(6)
Total revenue by line of business	$	975	$	890	$	917	$	939	$	963		10 %	1 %		$	3,721	$	4,084		(9)%
Average loans	$	16,505	$	16,260	$	16,322	$	16,403	$	16,485		2 %	- %	$	16,372	$	16,774	(2)%
Average assets	$	30,615	$	30,326	$	30,709	$	31,857	$	31,043		1 %	(1)%	$	30,697	$	31,446	(2)%
Average deposits	$	15,195	$	14,083	$	14,615	$	15,815	$	14,893		8 %	2 %	$	14,923	$	14,291	4 %

1. 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.
2. On a constant currency basis (Non-GAAP), investment management and performance fees were essentially unchanged compared with 4Q18. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.
3. Net of distribution and servicing expense. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.

N/M - Not meaningful.

11

THE BANK OF NEW YORK MELLON CORPORATION

AUM BY PRODUCT, AUM FLOWS AND WEALTH MANAGEMENT CLIENT ASSETS

												4Q19 vs.					FY19 vs.
(dollars in billions)		4Q19		3Q19		2Q19		1Q19		4Q18	3Q19	4Q18			FY19		FY18		FY18
AUM by product type (a)(b)
Equity	$	154	$	147	$	152	$	149	$	135		5%	14%
Fixed income		224		211		209		208		200		6	12
Index		339		321		322		333		301		6	13
Liability-driven investments		728		742		709		709		659		(2)	10
Multi-asset and alternative investments		192		182		184		178		167		5	15
Cash		273		278		267		264		260		(2)	5
Total AUM by product type	$	1,910	$	1,881	$	1,843	$	1,841	$	1,722		2%	11%
Changes in AUM (a)(b)
Beginning balance of AUM	$	1,881	$	1,843	$	1,841	$	1,722	$	1,828			$	1,722	$	1,893
Net inflows (outflows):
Long-term strategies:
Equity		(6)		(4)		(2)		(4)		(8)						(16)		(13)
Fixed income		5		2		(4)		3		(1)						6		4
Liability-driven investments		(3)		(4)		1		5		14						(1)		45
Multi-asset and alternative investments		3		(1)		1		(4)		(2)						(1)		(6)
Total long-term active strategies (outflows) inflows		(1)		(7)		(4)		-		3						(12)		30
Index		(5)		(3)		(22)		(2)		(11)						(32)		(34)
Total long-term strategies (outflows)		(6)		(10)		(26)		(2)		(8)						(44)		(4)
Short-term strategies:
Cash		(7)		11		2		2		(10)						8		(35)
Total net (outflows) inflows		(13)		1		(24)		-		(18)						(36)		(39)
Net market impact		(20)		66		42		103		(69)						191		(48)
Net currency impact		62		(29)		(16)		16		(19)						33		(53)
Divestiture/Other		-		-		-		-		-					-		(31)
Ending balance of AUM	$	1,910	$	1,881	$	1,843	$	1,841	$	1,722		2%	11% $	1,910	$	1,722	11%
Wealth Management client assets (a)(c)	$	266	$	259	$	257	$	253	$	239		3%	11%

1. Dec. 31, 2019 information is preliminary.
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.

12

THE BANK OF NEW YORK MELLON CORPORATION

OTHER SEGMENT

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

13

THE BANK OF NEW YORK MELLON CORPORATION INVESTMENT SECURITIES PORTFOLIO

		Sept. 30,			4Q19		Dec. 31, 2019		Fair value					Ratings (b)
				change in						as a % of
		2019				Amortized				Unrealized		AAA/	A+/	BBB+/	BB+ and	Not
				unrealized					amortized
(dollars in millions)		Fair value			gain (loss)		cost		Fair value		cost (a)	gain (loss)		AA-	A-	BBB-	lower	rated
Agency RMBS	$	53,254		$	24	$	54,379	$	54,646		100% $	267		100%	-%	-%	-%	-%
U.S. Treasury		18,541			24		18,797		18,865		100	68		100	-	-	-	-
Sovereign debt/sovereign guaranteed		13,932			(65)		13,304		13,404		101	100		74	5	20	1	-
Agency commercial MBS		10,598			(41)		10,557		10,613		101	56		100	-	-	-	-
Foreign covered bonds		3,670			(11)		4,268		4,276		100	8		100	-	-	-	-
CLOs		3,868			(1)		4,078		4,063		100	(15)		99	-	-	1	-
Supranational		4,113			(26)		3,724		3,734		100	10		100	-	-	-	-
U.S. government agencies		3,344			(16)		2,913		2,933		101	20		100	-	-	-	-
Foreign government agencies		2,183			(5)		2,638		2,641		100	3		95	5	-	-	-
Non-agency commercial MBS		2,250			(12)		2,134		2,165		101	31		98	2	-	-	-
Other asset-backed securities		2,484			(5)		2,141		2,143		100	2		100	-	-	-	-
Non-agency RMBS (c)		1,301			(14)		1,118		1,316		118	198		26	11	3	37	23
State and political subdivisions		1,200			2		1,034		1,061		103	27		77	22	-	-	1
Corporate bonds		879			-		832		853		103	21		17	68	15	-	-
Other		74			(3)		1		1		100	-		-	-	-	-	100
Total investment securities	$	121,691	(d)	$	(149)	$	121,918	$	122,714	(d)	101% $	796	(d)(e)	95%	2%	2%	1%	-%

1. Amortized cost reflects historical impairments.
2. Represents ratings by S&P, or the equivalent.
3. Includes RMBS that were included in the former Grantor Trust of $689 million at Sept. 30, 2019 and $640 million at Dec. 31, 2019.
4. Includes net unrealized losses on derivatives hedging securities available-for-sale of $963 million at Sept. 30, 2019 and $641 million at Dec. 31, 2019.
5. Includes unrealized gains of $474 million at Dec. 31, 2019 related to available-for-sale securities, net of hedges.

14

THE BANK OF NEW YORK MELLON CORPORATION

ALLOWANCE FOR CREDIT LOSSES AND NONPERFORMING ASSETS

					2019								2018
(dollars in millions)		Dec. 31		Sept. 30		June 30			March 31				Dec. 31
Allowance for credit losses - beginning of period:
Allowance for loan losses	$	127	$	146	$	146		$	146		$	140
Allowance for lending-related commitments		97		95		102			106				111
Allowance for credit losses - beginning of period	$	224	$	241	$	248		$	252		$	251
Net (charge-offs) recoveries:
Charge-offs		(1)		(1)		(1)			(11)				-
Recoveries		1		-		2			-				1
Total net (charge-offs) recoveries		-		(1)		1			(11)				1
Provision for credit losses		(8)		(16)		(8)			7				-
Allowance for credit losses - end of period	$	216	$	224	$	241		$	248		$	252
Allowance for credit losses - end of period:
Allowance for loan losses	$	122	$	127	$	146		$	146		$	146
Allowance for lending-related commitments		94		97		95			102				106
Allowance for credit losses - end of period	$	216	$	224	$	241		$	248		$	252
Allowance for loan losses as a percentage of total loans		0.22%		0.23%	0.28%			0.27%				0.26%
Nonperforming assets	$	89	$	88	$	186	(a)	$	174	(a)	$	79
(a) Includes nonperforming loans to a California utility company that filed for bankruptcy that were sold in 3Q19.

15

THE BANK OF NEW YORK MELLON CORPORATION

SUPPLEMENTAL INFORMATION - EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES

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

Net interest revenue, on a fully taxable equivalent ("FTE") basis - Non-GAAP and net interest margin (FTE) - Non-GAAP and other FTE measures include the tax equivalent adjustments on tax-exempt income which allows for the comparison of amounts arising from both taxable and tax-exempt sources and is consistent with industry practice. The adjustment to an FTE basis has no impact on net income.

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

The presentation of the growth rates of investment management and performance fees on a constant currency basis permits investors to assess the significance of changes in foreign currency exchange rates. Growth rates on a constant currency basis were determined by applying the current period foreign currency exchange rates to the prior period revenue. BNY Mellon believes that this presentation, as a supplement to GAAP information, gives investors a clearer picture of the related revenue results without the variability caused by fluctuations in foreign currency exchange rates.

Notes:

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

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

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

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

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THE BANK OF NEW YORK MELLON CORPORATION

SUPPLEMENTAL INFORMATION - EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES

Book value and tangible book value per common share reconciliation				2019						2018
(dollars in millions, except common shares)		Dec. 31		Sept. 30		June 30		March 31			Dec. 31
BNY Mellon shareholders' equity at period end - GAAP	$	41,483	$	41,120	$	41,533	$	41,225	$	40,638
Less: Preferred stock		3,542		3,542		3,542		3,542			3,542
BNY Mellon common shareholders' equity at period end - GAAP		37,941		37,578		37,991		37,683			37,096
Less: Goodwill		17,386		17,248		17,337		17,367			17,350
Intangible assets		3,107		3,124		3,160		3,193			3,220
Add: Deferred tax liability - tax deductible goodwill		1,098		1,103		1,094		1,083			1,072
Deferred tax liability - intangible assets		670		679		687		690			692
BNY Mellon tangible common shareholders' equity at period end - Non-GAAP	$	19,216	$	18,988	$	19,275	$	18,896	$	18,290
Period-end common shares outstanding (in thousands)		900,683		922,199		942,662		957,517			960,426
Book value per common share - GAAP	$	42.12	$	40.75	$	40.30	$	39.36	$	38.63
Tangible book value per common share - Non-GAAP	$	21.33	$	20.59	$	20.45	$	19.74	$	19.04

Net interest margin reconciliation
(dollars in millions)		4Q19		3Q19		2Q19		1Q19		4Q18
Net interest revenue - GAAP	$	815	$	730	$	802	$	841	$	885
Add: Tax equivalent adjustment		2		3		4		4		4
Net interest revenue (FTE) - Non-GAAP	$	817	$	733	$	806	$	845	$	889
Average interest-earning assets	$	297,987	$	294,154	$	287,417	$	282,185	$	285,706
Net interest margin - GAAP (a)		1.09%		0.99%		1.12%		1.20%		1.24%
Net interest margin (FTE) - Non-GAAP(a)		1.09%		1.00%		1.12%		1.20%		1.24%
(a) Net interest margin is annualized.

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THE BANK OF NEW YORK MELLON CORPORATION

SUPPLEMENTAL INFORMATION - EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES

Pre-tax operating margin reconciliation - Investment Management business
(dollars in millions)		4Q19		3Q19		2Q19		1Q19		4Q18			FY19		FY18
Income before income taxes - GAAP	$	245	$	300	$	265	$	269	$	247		$	1,079	$	1,263
Total revenue - GAAP	$	975	$	890	$	917	$	939	$	963	$	3,721	$	4,084
Less: Distribution and servicing expense		93		98		94		91		95			376		407
Adjusted total revenue, net of distribution and servicing expense - Non-GAAP	$	882	$	792	$	823	$	848	$	868	$	3,345	$	3,677
Pre-tax operating margin - GAAP (a)		25%		34%		29 %		29%		26%			29%		31%
Adjusted pre-tax operating margin, net of distribution and servicing expense - Non-GAAP(a)		28%		38%		32 %		32%		29%			32%		34%
(a) Income before income taxes divided by total revenue.
Constant currency reconciliations						4Q19 vs.
(dollars in millions)		4Q19		4Q18		4Q18
Consolidated:
Investment management and performance fees - GAAP	$	883	$	884		- %
Impact of changes in foreign currency exchange rates		-		-
Adjusted investment management and performance fees - Non-GAAP	$	883	$	884		- %
Investment Management business:
Investment management and performance fees - GAAP	$	879	$	880		- %
Impact of changes in foreign currency exchange rates		-		-
Adjusted investment management and performance fees - Non-GAAP	$	879	$	880		- %

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