Form 8-K Bank of New York Mellon For: Oct 18

October 18, 2018 6:32 AM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) – October 18, 2018

THE BANK OF NEW YORK MELLON CORPORATION

(Exact name of registrant as specified in its charter)



Delaware	001-35651	13-2614959
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
240 Greenwich Street New York, New York 10286
(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code – (212) 495-1784

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 under the Securities Act (17 CFR 230.405) or Rule 12b-2 under the Exchange Act (17 CFR 240.12b-2).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On October 18, 2018, The Bank of New York Mellon Corporation (“BNY Mellon”) issued an Earnings Release announcing its financial results for the third quarter of 2018. A copy of each of the Earnings Release and a Financial Supplement is attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and is incorporated herein by reference. The quotation included in Exhibit 99.1 (the “Excluded Section”) is “furnished” by this Current Report on Form 8-K pursuant to General Instruction B.2 of Form 8-K and is not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any BNY Mellon filing under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act. The information included in Exhibit 99.1, other than in the Excluded Section, and Exhibit 99.2 is to be considered “filed” under the Exchange Act and is incorporated by reference into all filings made by BNY Mellon under the Securities Act and the Exchange Act that state that this Current Report on Form 8-K is incorporated therein by reference.

ITEM 7.01. REGULATION FD DISCLOSURE.

On October 18, 2018, in conjunction with a conference call and webcast regarding BNY Mellon’s financial results, the Earnings Release, the Financial Supplement and a Third Quarter 2018 Financial Highlights presentation are available on BNY Mellon’s website, www.bnymellon.com. A copy of the Third Quarter 2018 Financial Highlights presentation is “furnished” as Exhibit 99.3 to this Current Report on Form 8-K pursuant to General Instruction B.2 of Form 8-K and is not “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that Section. This exhibit shall not be incorporated by reference into any filings BNY Mellon has made or may make under the Securities Act or Exchange Act, except as otherwise expressly stated in such filing. The contents of BNY Mellon’s website referenced herein and in the exhibits are not incorporated into this Current Report on Form 8-K.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

Exhibit 99.1 (other than the Excluded Section) and Exhibit 99.2 shall be deemed filed herewith. The Excluded Section and Exhibit 99.3 shall be deemed furnished herewith.

(d) EXHIBITS.



Exhibit
Number			Description

99.1			The Bank of New York Mellon Corporation Earnings Release dated October 18, 2018, announcing financial results for the third quarter of 2018.

99.2			The Bank of New York Mellon Corporation Financial Supplement dated October 18, 2018, for the third quarter of 2018.

99.3			Third Quarter 2018 Financial Highlights Presentation dated October 18, 2018.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



	The Bank of New York Mellon Corporation (Registrant)
Date: October 18, 2018	By: /s/ Kathleen B. McCabe
	Name: Kathleen B. McCabe Title: Assistant Secretary

BNY Mellon 3Q18 Earnings Release



News Release

BNY MELLON REPORTS THIRD QUARTER 2018 EARNINGS OF

$1.08 BILLION OR $1.06 PER COMMON SHARE



Revenue up 1%	EPS up 13%	ROE 11% ROTCE 23% (a)	CET1 11.2% SLR 6.4%

NEW YORK, October 18, 2018 – The Bank of New York Mellon Corporation (“BNY Mellon”) (NYSE: BK) today reported:



							3Q18 vs.
	3Q18		2Q18		3Q17		2Q18		3Q17
Net income applicable to common shareholders (in millions)	$	1,075	$	1,055	$	983	2	%	9	%
Diluted earnings per common share	$	1.06	$	1.03	$	0.94	3	%	13	%

Third Quarter Results

Total revenue of $4.1 billion, increased 1%


•	Fee revenue increased 1%


•	Net interest revenue increased 6%

Total noninterest expense of $2.7 billion, increased 3%


•	Continued investments in technology were partially offset by decreases in other expenses


•	Litigation increased expenses 2%; $(0.05) per common share

Income tax


•	Lower tax rate due to adjusted estimates for U.S. tax legislation and other changes; $0.05 per common share

Investment Services


•	Total revenue increased 3%


•	Income before taxes decreased 6%, driven by litigation expense


•	AUC/A of $34.5 trillion, up 7%

Investment Management


•	Total revenue increased 2%


•	Income before taxes increased 5%


•	AUM of $1.8 trillion

Returned $885 million to common shareholders


•	Repurchased 12 million common shares for $602 million


•	Paid $283 million in dividends to common shareholders

CEO Commentary

“Our results this quarter were mixed. While we continued to benefit from a reduction in our tax rate related to the new tax law in the U.S. and from strong capital returns, our revenue growth was modest. We did see reasonable growth in some of our businesses and remain confident that we can increase the rate of growth in the others,” Charles W. Scharf, chairman and chief executive officer, said.

“We are moving with a sense of urgency to improve our growth trajectory. Bringing in new talent to complement the great expertise we already have is critical. Since the end of the second quarter, we have added a number of experienced senior leaders to our executive team, including a new CEO of Wealth Management, CEO of Treasury Services, Head of Digital, Head of Strategy, Head of Asset Servicing for the Americas, Chief Technology Officer, Wealth Management Technology Lead and Chief Marketing Officer,” Mr. Scharf continued.

“Knowing it will take time to increase our organic revenue growth, we remain keenly focused on expenses and continue to believe there are meaningful opportunities to become more efficient in both the short and the long term, which will help fund investments to improve the quality of our work and build additional capabilities for our clients,” Mr. Scharf concluded.



Investor Relations: Scott Freidenrich (212) 815-4008	Media Relations: Jennifer Hendricks Sullivan (212) 635-1374
(a) For information on this Non-GAAP measure, see “Supplemental information - Explanation of GAAP and Non-GAAP financial measures” beginning on page 11.
Note: Above comparisons are 3Q18 vs. 3Q17.

BNY Mellon 3Q18 Earnings Release

CONSOLIDATED THIRD QUARTER 2018 FINANCIAL HIGHLIGHTS



(dollars in millions, except per share amounts; common shares in thousands)										3Q18 vs.
	3Q18			2Q18			3Q17			2Q18		3Q17
Fee revenue	$	3,168		$	3,209		$	3,148		(1	)%	1	%
Net securities gains	—			1			19			N/M		N/M
Total fee and other revenue	3,168			3,210			3,167			(1	)	—
Income from consolidated investment management funds	10			12			10			N/M		N/M
Net interest revenue	891			916			839			(3	)	6
Total revenue	4,069			4,138			4,016			(2	)	1
Provision for credit losses	(3		)	(3		)	(6		)	N/M		N/M
Noninterest expense	2,738			2,747			2,654			—		3
Income before income taxes	1,334			1,394			1,368			(4	)	(2	)
Provision for income taxes	220			286			348			(23	)	(37	)
Net income	$	1,114		$	1,108		$	1,020		1	%	9	%
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	1,075		$	1,055		$	983		2	%	9	%
Operating leverage (a)										(134	) bps	(185	) bps
Diluted earnings per common share	$	1.06		$	1.03		$	0.94		3	%	13	%
Average common shares and equivalents outstanding - diluted	1,003,665			1,014,357			1,041,138
Pre-tax operating margin	33		%	34		%	34		%


(a)	Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense.

N/M – Not meaningful.

bps – basis points.

KEY DRIVERS (comparisons are 3Q18 vs. 3Q17, unless otherwise stated)


•	Total revenue increased 1% primarily reflecting:


•	Fee revenue increased 1% primarily reflecting higher equity market values, growth in collateral management and clearance volumes and higher performance fees, partially offset by lower foreign currency hedging.


•	Net interest revenue increased 6% primarily driven by higher rates, partially offset by lower deposits and other borrowings.


•	Noninterest expense increased 3% primarily reflecting investments in technology and higher litigation expense, partially offset by lower staff and distribution and servicing expenses. Litigation increased noninterest expense by 2%.


•	Effective tax rate of 16.5%. The impact of adjusting provisional estimates for U.S. tax legislation and other changes decreased the effective rate by approximately 4.5%.

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


•	AUC/A of $34.5 trillion, up 7%, primarily reflecting net new business and higher equity market values, partially offset by the unfavorable impact of a stronger U.S. dollar.


•	AUM of $1.8 trillion increased slightly, primarily reflecting higher market values, partially offset by the divestiture of CenterSquare Investment Management (“CenterSquare”) and other changes and the unfavorable impact of a stronger U.S. dollar (principally versus the British pound).

Capital and liquidity


•	Repurchased 12 million common shares for $602 million and paid $283 million in dividends to common shareholders.


•	Return on common equity (“ROE”) of 11%; Return on tangible common equity (“ROTCE”) of 23% (b).


•	Common Equity Tier 1 (“CET1”) ratio – 11.2%.


•	Supplementary leverage ratio (“SLR”) – 6.4%.


•	Average liquidity coverage ratio (“LCR”) – 121%.


(b)	See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for the reconciliation.

Note: Throughout this document, sequential growth rates are unannualized.

Page - 2

BNY Mellon 3Q18 Earnings Release

INVESTMENT SERVICES BUSINESS HIGHLIGHTS



(dollars in millions, unless otherwise noted; not meaningful - N/M)										3Q18 vs.
	3Q18			2Q18			3Q17			2Q18		3Q17
Total revenue by line of business:
Asset Servicing	$	1,458		$	1,520		$	1,420		(4	)%	3	%
Pershing	558			558			542			—		3
Issuer Services	453			431			442			5		2
Treasury Services	324			329			316			(2	)	3
Clearance and Collateral Management	264			269			244			(2	)	8
Total revenue by line of business	3,057			3,107			2,964			(2	)	3
Provision for credit losses	1			1			(2		)	N/M		N/M
Noninterest expense	2,030			1,967			1,874			3		8
Income before taxes	$	1,026		$	1,139		$	1,092		(10	)%	(6	)%

Pre-tax operating margin	34		%	37		%	37		%

Foreign exchange and other trading revenue	$	161		$	172		$	154		(6	)%	5	%
Securities lending revenue	$	52		$	55		$	41		(5	)%	27	%

Metrics:
Average loans	$	35,044		$	38,002		$	38,038		(8	)%	(8	)%
Average deposits	$	192,741		$	203,064		$	198,299		(5	)%	(3	)%

AUC/A at period end (in trillions) (current period is preliminary) (a)	$	34.5		$	33.6		$	32.2		3	%	7	%
Market value of securities on loan at period end (in billions) (b)	$	415		$	432		$	382		(4	)%	9	%

Pershing
Average active clearing accounts (U.S. platform) (in thousands)	6,108			6,080			6,203			—	%	(2	)%
Average long-term mutual fund assets (U.S. platform)	$	527,336		$	512,645		$	500,998		3	%	5	%
Average investor margin loans (U.S. platform)	$	10,696		$	10,772		$	8,886		(1	)%	20	%

Clearance and Collateral Management
Average tri-party collateral management balances (in billions)	$	2,995		$	2,801		$	2,534		7	%	18	%


(a)	Includes the AUC/A of CIBC Mellon Global Securities Services Company (“CIBC Mellon”), a joint venture with the Canadian Imperial Bank of Commerce, of $1.4 trillion at Sept. 30, 2018 and June 30, 2018 and $1.3 trillion at Sept. 30, 2017.


(b)	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 $69 billion at Sept. 30, 2018, $70 billion at June 30, 2018 and $68 billion at Sept. 30, 2017.

KEY DRIVERS


•	Total revenue increased year-over-year and decreased sequentially. Net interest revenue increased year-over-year in all businesses, primarily driven by higher interest rates. The drivers of fee revenue by line of business are indicated below.


•	Asset Servicing - The year-over-year increase primarily reflects higher equity market values, securities lending volumes, net interest revenue and foreign exchange volumes. The sequential decrease primarily reflects lower net interest revenue, primarily driven by lower deposit balances, and lower foreign exchange volumes.


•	Pershing - The year-over-year increase primarily reflects higher net interest revenue, equity market values and long-term mutual funds balances, partially offset by the previously disclosed lost business.


•	Issuer Services - The year-over-year increase primarily reflects higher net interest revenue in Corporate Trust. The sequential increase primarily reflects seasonality in Depositary Receipts.


•	Treasury Services - The year-over-year increase primarily reflects higher net interest revenue and transaction volumes. The sequential decrease primarily reflects lower net interest revenue.


•	Clearance and Collateral Management - The year-over-year increase reflects growth in collateral management, clearance volumes and net interest revenue. The sequential decrease primarily reflects lower net interest revenue.


•	Noninterest expense increased both year-over-year and sequentially primarily driven by investments in technology and higher litigation expense, partially offset by lower staff expense. Litigation increased noninterest expense by 3%.

Page - 3

BNY Mellon 3Q18 Earnings Release

INVESTMENT MANAGEMENT BUSINESS HIGHLIGHTS



(dollars in millions, unless otherwise noted; not meaningful - N/M)										3Q18 vs.
	3Q18			2Q18			3Q17			2Q18		3Q17
Total revenue by line of business:
Asset Management	$	704		$	702		$	693		—	%	2	%
Wealth Management	311			316			307			(2	)	1
Total revenue by line of business	1,015			1,018			1,000			—		2
Provision for credit losses	(2		)	2			(2		)	N/M		N/M
Noninterest expense	701			697			702			1		—
Income before taxes	$	316		$	319		$	300		(1	)%	5	%

Pre-tax operating margin	31		%	31		%	30		%
Adjusted pre-tax operating margin – Non-GAAP (a)	35		%	35		%	34		%

Metrics:
Average loans	$	16,763		$	16,974		$	16,724		(1	)%	—	%
Average deposits	$	14,634		$	14,252		$	12,374		3	%	18	%

Wealth Management client assets (in billions) (current period is preliminary) (b)	$	261		$	254		$	245		3	%	7	%

Changes in AUM (in billions) (current period is preliminary): (c)
Beginning balance of AUM	$	1,805		$	1,868		$	1,771
Net inflows (outflows):
Long-term strategies:
Equity	(2		)	(3		)	(2		)
Fixed income	2			(4		)	4
Liability-driven investments, including currency overlay	16			2			(2		)
Multi-asset and alternative investments	2			(3		)	3
Total long-term active strategies inflows (outflows)	18			(8		)	3
Index	(3		)	(7		)	(3		)
Total long-term strategies inflows (outflows)	15			(15		)	—
Short term strategies:
Cash	—			(11		)	10
Total net inflows (outflows)	15			(26		)	10
Net market impact	18			17			17
Net currency impact	(10		)	(53		)	26
Divestiture/Other	—			(1		)	—
Ending balance of AUM	$	1,828		$	1,805		$	1,824		1	%	—	%


(a)	Net of distribution and servicing expense. See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for the reconciliation of this Non-GAAP measure. In 1Q18, the adjusted pre-tax operating margin – Non-GAAP for prior periods was restated to include amortization of intangible assets and the provision for credit losses.


(b)	Includes AUM and AUC/A in the Wealth Management business.


(c)	Excludes securities lending cash management assets and assets managed in the Investment Services business.

KEY DRIVERS


•	Total revenue increased year-over-year and decreased sequentially.


•	Asset Management - The year-over-year increase reflects higher equity market values and performance fees, partially offset by the impact of net outflows and the divestiture of CenterSquare.


•	Wealth Management - The sequential decrease primarily reflects lower net interest revenue, partially offset by higher equity market values.

Page - 4

BNY Mellon 3Q18 Earnings Release

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




(in millions)	3Q18			2Q18			3Q17
Fee revenue	$	7		$	40		$	50
Net securities gains	—			1			19
Total fee and other revenue	7			41			69
Net interest (expense)	(13		)	(35		)	(20		)
Total (loss) revenue	(6		)	6			49
Provision for credit losses	(2		)	(6		)	(2		)
Noninterest expense	6			81			77
(Loss) before taxes	$	(10	)	$	(69	)	$	(26	)

KEY DRIVERS


•	Fee revenue decreased year-over-year and sequentially primarily reflecting our investments in renewable energy, including the impact of adjusting the provisional tax estimates (offset in income tax and de minimis to net income), and foreign currency hedging.


•	Net interest expense decreased year-over-year and sequentially primarily resulting from corporate treasury activity.


•	Noninterest expense decreased year-over-year and sequentially primarily reflecting lower staff expense. The sequential decrease also reflects the expenses associated with the consolidation of our real estate recorded in 2Q18. We expect to record the remaining expense related to relocating our corporate headquarters in 4Q18.

Page - 5

BNY Mellon 3Q18 Earnings Release

CAPITAL AND LIQUIDITY

Our consolidated capital and liquidity ratios are shown in the following table.



Capital and liquidity ratios	Sept. 30, 2018			June 30, 2018			Dec. 31, 2017
Consolidated regulatory capital ratios: (a)(b)
CET1 ratio	11.2		%	11.0		%	10.3		%
Tier 1 capital ratio	13.4		%	13.1		%	12.3		%
Total capital ratio	14.1		%	13.8		%	13.0		%
Tier 1 leverage ratio	7.0		%	6.7		%	6.4		%
SLR	6.4		%	6.1		%	5.9		%
BNY Mellon shareholders’ equity to total assets ratio	11.9		%	11.8		%	11.1		%
BNY Mellon common shareholders’ equity to total assets ratio	10.9		%	10.8		%	10.1		%

Average LCR	121		%	118		%	118		%

Book value per common share (c)	$	38.45		$	37.97		$	37.21
Tangible book value per common share – Non-GAAP (c)	$	19.35		$	19.00		$	18.24
Cash dividends per common share	$	0.28		$	0.24		$	0.24
Common dividend payout ratio	26		%	23		%	22		%
Closing stock price per common share	$	50.99		$	53.93		$	53.86
Market capitalization (in millions)	$	50,418		$	53,927		$	54,584
Common shares outstanding (in thousands)	988,777			999,945			1,013,442


(a)	Regulatory capital ratios for Sept. 30, 2018 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.


(b)	Regulatory capital ratios for Dec. 31, 2017 are presented on a fully phased-in basis. On a transitional basis at Dec. 31, 2017, the CET1 ratio was 10.7%, the Tier 1 capital ratio was 12.7%, the Total capital ratio was 13.4%, the Tier 1 leverage ratio was 6.6% and the SLR was 6.1%.


(c)	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” beginning on page 11 for the reconciliation of this Non-GAAP measure.

KEY POINTS


•	CET1 capital totaled $18.5 billion at Sept. 30, 2018, an increase of $133 million compared with June 30, 2018. The increase primarily reflects capital generated through earnings, partially offset by capital deployed through common stock repurchases and dividend payments.

Page - 6

BNY Mellon 3Q18 Earnings Release

NET INTEREST REVENUE



Net interest revenue										3Q18 vs.
(dollars in millions; not meaningful - N/M)	3Q18			2Q18			3Q17			2Q18		3Q17
Net interest revenue	$	891		$	916		$	839		(3	)%	6	%
Add: Tax equivalent adjustment	5			5			12			N/M		N/M
Net interest revenue, on a fully taxable equivalent (“FTE”) basis – Non-GAAP (a)	$	896		$	921		$	851		(3	)%	5	%

Net interest margin	1.27		%	1.26		%	1.15		%	1	bps	12	bps
Net interest margin (FTE) – Non-GAAP (a)	1.28		%	1.26		%	1.16		%	2	bps	12	bps

Selected average balances:
Cash/interbank investments (b)	$	102,645		$	113,475		$	114,449		(10	)%	(10	)%
Trading securities	4,261			3,784			2,359			13		81
Securities	118,505			117,761			119,089			1		—
Loans	53,807			57,066			55,944			(6	)	(4	)
Interest-earning assets	$	279,218		$	292,086		$	291,841		(4	)%	(4	)%

Interest-bearing deposits	$	148,636		$	152,799		$	142,490		(3	)%	4	%
Federal funds purchased and securities sold under repurchase agreements (b)	14,199			18,146			21,403			(22	)	(34	)
Long-term debt	28,074			28,349			28,138			(1	)	—
Other interest-bearing liabilities	23,251			23,815			24,883			(2	)	(7	)
Interest-bearing liabilities	$	214,160		$	223,109		$	216,914		(4	)%	(1	)%
Noninterest-bearing deposits	$	60,677		$	64,768		$	70,168		(6	)%	(14	)%

Selected average yields/rates: (c)
Cash/interbank investments	1.79		%	1.48		%	0.84		%
Trading securities	3.05			3.10			2.26
Securities	2.25			2.16			1.80
Loans	3.50			3.32			2.63
Interest-earning assets	2.33			2.14			1.59

Interest-bearing deposits	0.63		%	0.45		%	0.16		%
Federal funds purchased and securities sold under repurchase agreements (b)	5.33			3.48			1.30
Long-term debt	3.17			3.06			2.07
Other interest-bearing liabilities	1.53			1.47			0.59
Interest-bearing liabilities	1.37			1.14			0.57

Average cash/interbank investments as a percentage of average interest-earning assets	37		%	39		%	39		%
Average noninterest-bearing deposits as a percentage of average interest-earning assets	22		%	22		%	24		%


(a)	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.


(b)	Includes the impact of offsetting under enforceable netting agreements.


(c)	Yields/rates include the impact of interest rate hedging activities.

bps – basis points.

KEY DRIVERS


•	Net interest revenue increased year-over-year primarily reflecting higher interest rates, partially offset by lower deposits and other borrowings. The sequential decrease was primarily driven by lower deposits and other borrowings, partially offset by higher interest rates.

Page - 7

BNY Mellon 3Q18 Earnings Release

NONINTEREST EXPENSE



Noninterest expense							3Q18 vs.
(dollars in millions)	3Q18		2Q18		3Q17		2Q18		3Q17
Staff	$	1,478	$	1,489	$	1,485	(1	)%	—	%
Professional, legal and other purchased services	332		328		305		1		9
Software and equipment	262		266		233		(2	)	12
Net occupancy	139		156		141		(11	)	(1	)
Sub-custodian and clearing	106		110		101		(4	)	5
Distribution and servicing	99		106		109		(7	)	(9	)
Business development	51		62		49		(18	)	4
Bank assessment charges	49		47		51		4		(4	)
Amortization of intangible assets	48		48		52		—		(8	)
Other	174		135		128		29		36
Total noninterest expense	$	2,738	$	2,747	$	2,654	—	%	3	%

KEY DRIVERS


•	Total noninterest expense increased year-over-year primarily reflecting investments in technology and higher litigation expense, partially offset by lower staff and distribution and servicing expenses. The investments in technology are included in staff, professional, legal and other purchased services and software and equipment expenses.


•	The sequential decrease in total noninterest expense primarily reflects lower net occupancy, staff and business development expenses, partially offset by higher litigation expense. The decrease in net occupancy expense is primarily due to expenses associated with the continued consolidation of our real estate recorded in 2Q18.


•	The total cost of relocating our corporate headquarters is estimated to be $75 million, of which $12 million was recorded in 2Q18. We expect to record the remaining expense in 4Q18.

Page - 8

BNY Mellon 3Q18 Earnings Release

THE BANK OF NEW YORK MELLON CORPORATION

Condensed Consolidated Income Statement



(in millions)	Quarter ended									Year-to-date
	Sept. 30, 2018			June 30, 2018			Sept. 30, 2017			Sept. 30, 2018			Sept. 30, 2017

Fee and other revenue
Investment services fees:
Asset servicing	$	1,157		$	1,157		$	1,105		$	3,482		$	3,253
Clearing services	383			392			383			1,189			1,153
Issuer services	287			266			288			813			780
Treasury services	137			140			141			415			420
Total investment services fees	1,964			1,955			1,917			5,899			5,606
Investment management and performance fees	922			910			901			2,792			2,622
Foreign exchange and other trading revenue	155			187			173			551			502
Financing-related fees	52			53			54			157			162
Distribution and servicing	34			34			40			104			122
Investment and other income	41			70			63			193			262
Total fee revenue	3,168			3,209			3,148			9,696			9,276
Net securities gains (losses)	—			1			19			(48		)	29
Total fee and other revenue	3,168			3,210			3,167			9,648			9,305
Operations of consolidated investment management funds
Investment income	10			13			10			12			57
Interest of investment management fund note holders	—			1			—			1			4
Income from consolidated investment management funds	10			12			10			11			53
Net interest revenue
Interest revenue	1,634			1,553			1,151			4,568			3,163
Interest expense	743			637			312			1,842			706
Net interest revenue	891			916			839			2,726			2,457
Total revenue	4,069			4,138			4,016			12,385			11,815
Provision for credit losses	(3		)	(3		)	(6		)	(11		)	(18		)
Noninterest expense
Staff (a)	1,478			1,489			1,485			4,543			4,405
Professional, legal and other purchased services	332			328			305			951			937
Software and equipment	262			266			233			762			688
Net occupancy	139			156			141			434			417
Sub-custodian and clearing (b)	106			110			101			335			312
Distribution and servicing	99			106			109			311			313
Business development	51			62			49			164			163
Bank assessment charges	49			47			51			148			167
Amortization of intangible assets	48			48			52			145			157
Other (a)(b)(c)	174			135			128			431			392
Total noninterest expense	2,738			2,747			2,654			8,224			7,951
Income
Income before income taxes	1,334			1,394			1,368			4,172			3,882
Provision for income taxes	220			286			348			788			949
Net income	1,114			1,108			1,020			3,384			2,933
Net (income) loss attributable to noncontrolling interests (includes $(3), $(7), $(3), $1 and $(24) related to consolidated investment management funds, respectively)	(3		)	(5		)	(2		)	1			(18		)
Net income applicable to shareholders of The Bank of New York Mellon Corporation	1,111			1,103			1,018			3,385			2,915
Preferred stock dividends	(36		)	(48		)	(35		)	(120		)	(126		)
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	1,075		$	1,055		$	983		$	3,265		$	2,789

(a)

In 1Q18, we adopted new accounting guidance included in Accounting Standards Update 2017-07, Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which required the reclassification of the components of pension and other postretirement costs, other than the service cost component. As a result, staff expense increased and other expense decreased. Prior periods have been reclassified.


(b)	Beginning in 1Q18, clearing expense, which was previously included in other expense, was included with sub-custodian expense. Prior periods have been reclassified.


(c)	Beginning in 1Q18, M&I, litigation and restructuring charges are no longer separately disclosed. Expenses previously reported in this line have been reclassified to existing expense categories, primarily other expense.

Page - 9

BNY Mellon 3Q18 Earnings Release

THE BANK OF NEW YORK MELLON CORPORATION

Condensed Consolidated Income Statement - continued



Net income applicable to common shareholders of The Bank of New York Mellon Corporation used for the earnings per share calculation	Quarter ended						Year-to-date
	Sept. 30, 2018		June 30, 2018		Sept. 30, 2017		Sept. 30, 2018		Sept. 30, 2017
(in millions)	Sept. 30, 2018		June 30, 2018		Sept. 30, 2017		Sept. 30, 2018		Sept. 30, 2017
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	1,075	$	1,055	$	983	$	3,265	$	2,789
Less: Earnings allocated to participating securities	7		7		8		22		35
Net income applicable to the common shareholders of The Bank of New York Mellon Corporation after required adjustment for the calculation of basic and diluted earnings per common share	$	1,068	$	1,048	$	975	$	3,243	$	2,754



Average common shares and equivalents outstanding of The Bank of New York Mellon Corporation	Quarter ended			Year-to-date
	Sept. 30, 2018	June 30, 2018	Sept. 30, 2017	Sept. 30, 2018	Sept. 30, 2017
(in thousands)	Sept. 30, 2018	June 30, 2018	Sept. 30, 2017	Sept. 30, 2018	Sept. 30, 2017
Basic	999,808	1,010,179	1,035,337	1,008,967	1,037,431
Diluted	1,003,665	1,014,357	1,041,138	1,013,242	1,043,585



Earnings per share applicable to the common shareholders of The Bank of New York Mellon Corporation	Quarter ended						Year-to-date
	Sept. 30, 2018		June 30, 2018		Sept. 30, 2017		Sept. 30, 2018		Sept. 30, 2017
(in dollars)	Sept. 30, 2018		June 30, 2018		Sept. 30, 2017		Sept. 30, 2018		Sept. 30, 2017
Basic	$	1.07	$	1.04	$	0.94	$	3.21	$	2.66
Diluted	$	1.06	$	1.03	$	0.94	$	3.20	$	2.64

Page - 10

BNY Mellon 3Q18 Earnings Release

SUPPLEMENTAL INFORMATION – EXPLANATION OF GAAP AND 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. Tangible common shareholders’ equity excludes goodwill and intangible assets, net of deferred tax liabilities. BNY Mellon believes that the return on tangible common equity measure is an additional useful measure for investors because it presents a measure of those assets that can generate income. BNY Mellon has provided a measure of tangible book value per common share, which it believes provides additional useful information as to the level of tangible assets in relation to shares of common stock outstanding.

BNY Mellon has presented 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 following table presents the reconciliation of the return on common equity and tangible common equity.



Return on common equity and tangible common equity reconciliation
(dollars in millions)	3Q18			2Q18			3Q17
Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP	$	1,075		$	1,055		$	983
Add: Amortization of intangible assets	48			48			52
Less: Tax impact of amortization of intangible assets	11			11			17
Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets – Non-GAAP	$	1,112		$	1,092		$	1,018

Average common shareholders’ equity	$	38,036		$	37,750		$	36,780
Less: Average goodwill	17,391			17,505			17,497
Average intangible assets	3,283			3,341			3,487
Add: Deferred tax liability – tax deductible goodwill (a)	1,066			1,054			1,561
Deferred tax liability – intangible assets (a)	699			709			1,092
Average tangible common shareholders’ equity – Non-GAAP	$	19,127		$	18,667		$	18,449

Return on common equity (annualized) – GAAP	11.2		%	11.2		%	10.6		%
Return on tangible common equity (annualized) – Non-GAAP	23.1		%	23.5		%	21.9		%


(a)	Deferred tax liabilities for 3Q17 are based on fully phased-in U.S. capital rules.

The following table presents the reconciliation of the book value and tangible book value per common share.



Book value and tangible book value per common share reconciliation	Sept. 30, 2018		June 30, 2018		Dec. 31, 2017
(dollars in millions except common shares)	Sept. 30, 2018		June 30, 2018		Dec. 31, 2017
BNY Mellon shareholders’ equity at period end – GAAP	$	41,560	$	41,505	$	41,251
Less: Preferred stock	3,542		3,542		3,542
BNY Mellon common shareholders’ equity at period end – GAAP	38,018		37,963		37,709
Less: Goodwill	17,390		17,418		17,564
Intangible assets	3,258		3,308		3,411
Add: Deferred tax liability – tax deductible goodwill (a)	1,066		1,054		1,034
Deferred tax liability – intangible assets (a)	699		709		718
BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP	$	19,135	$	19,000	$	18,486

Period-end common shares outstanding (in thousands)	988,777		999,945		1,013,442

Book value per common share – GAAP	$	38.45	$	37.97	$	37.21
Tangible book value per common share – Non-GAAP	$	19.35	$	19.00	$	18.24


(a)	Deferred tax liabilities at Dec. 31, 2017 are based on fully phased-in U.S. capital rules.

Page - 11

BNY Mellon 3Q18 Earnings Release

The following table presents the reconciliation of the pre-tax operating margin for the Investment Management business.



Pre-tax operating margin reconciliation - Investment Management business
(dollars in millions)	3Q18			2Q18			3Q17
Income before income taxes – GAAP	$	316		$	319		$	300

Total revenue – GAAP	$	1,015		$	1,018		$	1,000
Less: Distribution and servicing expense	99			103			110
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP	$	916		$	915		$	890

Pre-tax operating margin – GAAP (a)	31		%	31		%	30		%
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a)	35		%	35		%	34		%

(a) Income before taxes divided by total revenue.

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 and efficiency, talent acquisition, expenses, including costs associated with the consolidation of our real estate and the timing of such costs, deposits, taxes, business opportunities, 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, 2017 and BNY Mellon’s other filings with the Securities and Exchange Commission. All forward-looking statements in this Earnings Release speak only as of Oct. 18, 2018, 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.

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 Sept. 30, 2018, BNY Mellon had $34.5 trillion in assets under custody and/or administration, and $1.8 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.

Page - 12

BNY Mellon 3Q18 Earnings Release

CONFERENCE CALL INFORMATION

Charles W. Scharf, Chairman and Chief Executive Officer, and Michael P. Santomassimo, Chief Financial Officer, will host a conference call and simultaneous live audio webcast at 8:00 a.m. EDT on Oct. 18, 2018. 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 (800) 390-5696 (U.S.) or (720) 452-9082 (International), and using the passcode: 678511, 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. EDT on Oct. 18, 2018. Replays of the conference call and audio webcast will be available beginning Oct. 18, 2018 at approximately 2 p.m. EDT through Nov. 17, 2018 by dialing (888) 203-1112 (U.S.) or (719) 457-0820 (International), and using the passcode: 4968536. The archived version of the conference call and audio webcast will also be available at www.bnymellon.com/investorrelations for the same time period.

Page - 13

The Bank of New York Mellon Corporation

Financial Supplement

Third Quarter 2018



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
Noninterest Expense		8
Capital and Liquidity		9

Key Market Metrics		10

Business Segment Results
Investment Services Business		11
Investment Management Business		13
AUM by Product, AUM Flows and Wealth Management Client Assets		14
Other Segment		15

Other
Investment Securities Portfolio		16
Allowance for Credit Losses and Nonperforming Assets		17

Supplemental Information – Explanation of GAAP and Non-GAAP Financial Measures		18



THE BANK OF NEW YORK MELLON CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(dollars in millions, except per common share amounts, or unless otherwise noted)																3Q18 vs.										YTD18 vs.
	3Q18			2Q18			1Q18			4Q17			3Q17			2Q18		3Q17		YTD18			YTD17			YTD17
Selected income statement data
Fee revenue	$	3,168		$	3,209		$	3,319		$	2,886		$	3,148		(1	)%	1	%	$	9,696		$	9,276		5	%
Net securities gains (losses)	—			1			(49		)	(26		)	19			N/M		N/M		(48		)	29			N/M
Fee and other revenue	3,168			3,210			3,270			2,860			3,167			(1	)	—		9,648			9,305			4
Income (loss) from consolidated investment management funds	10			12			(11		)	17			10			N/M		N/M		11			53			N/M
Net interest revenue	891			916			919			851			839			(3	)	6		2,726			2,457			11
Total revenue	4,069			4,138			4,178			3,728			4,016			(2	)	1		12,385			11,815			5
Provision for credit losses	(3		)	(3		)	(5		)	(6		)	(6		)	N/M		N/M		(11		)	(18		)	N/M
Noninterest expense	2,738			2,747			2,739			3,006			2,654			—		3		8,224			7,951			3
Income before income taxes	1,334			1,394			1,444			728			1,368			(4	)	(2	)	4,172			3,882			7
Provision (benefit) for income taxes	220			286			282			(453		)	348			(23	)	(37	)	788			949			(17	)
Net income	$	1,114		$	1,108		$	1,162		$	1,181		$	1,020		1	%	9	%	$	3,384		$	2,933		15	%
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	1,075		$	1,055		$	1,135		$	1,126		$	983		2	%	9	%	$	3,265		$	2,789		17	%

Diluted earnings per common share	$	1.06		$	1.03		$	1.10		$	1.08		$	0.94		3	%	13	%	$	3.20		$	2.64		21	%
Average common shares and equivalents outstanding - diluted (in thousands)	1,003,665			1,014,357			1,021,731			1,030,404			1,041,138			(1	)%	(4	)%	1,013,242			1,043,585			(3	)%

Financial ratios
Pre-tax operating margin	33		%	34		%	35		%	20		%	34		%					34		%	33		%
Return on common equity (annualized) (a)	11.2		%	11.2		%	12.2		%	12.1		%	10.6		%					11.6		%	10.4		%
Return on tangible common equity (annualized) – Non-GAAP (a)	23.1		%	23.5		%	25.9		%	25.9		%	21.9		%					24.1		%	22.0		%
Percent of non-U.S. total revenue	37		%	37		%	37		%	39		%	36		%					37		%	35		%

Period end
Assets under custody and/or administration (“AUC/A”) (in trillions) (b)	$	34.5		$	33.6		$	33.5		$	33.3		$	32.2		3	%	7	%
Assets under management (“AUM”) (in trillions)	$	1.83		$	1.81		$	1.87		$	1.89		$	1.82		1	%	—	%

Book value per common share (a)	$	38.45		$	37.97		$	37.78		$	37.21		$	36.11
Tangible book value per common share – Non-GAAP (a)	$	19.35		$	19.00		$	18.78		$	18.24		$	18.19
Cash dividends per common share	$	0.28		$	0.24		$	0.24		$	0.24		$	0.24
Common dividend payout ratio	26		%	23		%	22		%	22		%	26		%
Closing stock price per common share	$	50.99		$	53.93		$	51.53		$	53.86		$	53.02
Market capitalization	$	50,418		$	53,927		$	52,080		$	54,584		$	54,294
Common shares outstanding (in thousands)	988,777			999,945			1,010,676			1,013,442			1,024,022

Capital ratios at period end (c)
Common Equity Tier 1 ("CET1") ratio	11.2		%	11.0		%	10.7		%	10.3		%	10.7		%
Tier 1 capital ratio	13.4		%	13.1		%	12.7		%	12.3		%	12.8		%
Total capital ratio	14.1		%	13.8		%	13.4		%	13.0		%	13.6		%
Supplementary leverage ratio ("SLR")	6.4		%	6.1		%	5.9		%	5.9		%	6.1		%
(a) Non-GAAP information, for all periods presented, excludes goodwill and intangible assets, net of deferred tax liabilities. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 18 for the reconciliation of Non-GAAP measures.
(b) Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.4 trillion at Sept. 30, 2018 and June 30, 2018 and $1.3 trillion at March 31, 2018, Dec. 31, 2017 and Sept. 30, 2017.
(c) Regulatory capital ratios for Sept. 30, 2018 are preliminary. All risk-based capital ratios are presented using Advanced Approaches risk-weightings. The capital ratios for the 2017 periods are presented on a fully phased-in basis. See "Capital and Liquidity" for the transitional capital ratios.
N/M - Not meaningful.



THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENT
(dollars in millions, except per share amounts; common shares in thousands)																3Q18 vs.										YTD18 vs.
	3Q18			2Q18			1Q18			4Q17			3Q17			2Q18		3Q17		YTD18			YTD17			YTD17
Revenue
Investment services fees:
Asset servicing	$	1,157		$	1,157		$	1,168		$	1,130		$	1,105		—	%	5	%	$	3,482		$	3,253		7	%
Clearing services	383			392			414			400			383			(2	)	—		1,189			1,153			3
Issuer services	287			266			260			197			288			8		—		813			780			4
Treasury services	137			140			138			137			141			(2	)	(3	)	415			420			(1	)
Total investment services fees	1,964			1,955			1,980			1,864			1,917			—		2		5,899			5,606			5
Investment management and performance fees	922			910			960			962			901			1		2		2,792			2,622			6
Foreign exchange and other trading revenue	155			187			209			166			173			(17	)	(10	)	551			502			10
Financing-related fees	52			53			52			54			54			(2	)	(4	)	157			162			(3	)
Distribution and servicing	34			34			36			38			40			—		(15	)	104			122			(15	)
Investment and other income (loss)	41			70			82			(198		)	63			N/M		N/M		193			262			N/M
Total fee revenue	3,168			3,209			3,319			2,886			3,148			(1	)	1		9,696			9,276			5
Net securities gains (losses)	—			1			(49		)	(26		)	19			N/M		N/M		(48		)	29			N/M
Total fee and other revenue	3,168			3,210			3,270			2,860			3,167			(1	)	—		9,648			9,305			4
Income (loss) from consolidated investment management funds	10			12			(11		)	17			10			N/M		N/M		11			53			N/M
Net interest revenue	891			916			919			851			839			(3	)	6		2,726			2,457			11
Total revenue	4,069			4,138			4,178			3,728			4,016			(2	)	1		12,385			11,815			5
Provision for credit losses	(3		)	(3		)	(5		)	(6		)	(6		)	N/M		N/M		(11		)	(18		)	N/M
Noninterest expense
Staff (a)	1,478			1,489			1,576			1,628			1,485			(1	)	—		4,543			4,405			3
Professional, legal and other purchased services	332			328			291			339			305			1		9		951			937			1
Software and equipment	262			266			234			297			233			(2	)	12		762			688			11
Net occupancy	139			156			139			153			141			(11	)	(1	)	434			417			4
Sub-custodian and clearing (b)	106			110			119			102			101			(4	)	5		335			312			7
Distribution and servicing	99			106			106			106			109			(7	)	(9	)	311			313			(1	)
Business development	51			62			51			66			49			(18	)	4		164			163			1
Bank assessment charges	49			47			52			53			51			4		(4	)	148			167			(11	)
Amortization of intangible assets	48			48			49			52			52			—		(8	)	145			157			(8	)
Other (a)(b)(c)	174			135			122			210			128			29		36		431			392			10
Total noninterest expense	2,738			2,747			2,739			3,006			2,654			—		3		8,224			7,951			3
Income before income taxes	1,334			1,394			1,444			728			1,368			(4	)	(2	)	4,172			3,882			7
Provision (benefit) for income taxes	220			286			282			(453		)	348			(23	)	(37	)	788			949			(17	)
Net income	1,114			1,108			1,162			1,181			1,020			1		9		3,384			2,933			15
Net (income) loss attributable to noncontrolling interests	(3		)	(5		)	9			(6		)	(2		)	N/M		N/M		1			(18		)	N/M
Preferred stock dividends	(36		)	(48		)	(36		)	(49		)	(35		)	N/M		N/M		(120		)	(126		)	(5	)
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	1,075		$	1,055		$	1,135		$	1,126		$	983		2	%	9	%	$	3,265		$	2,789		17	%

Average common shares and equivalents outstanding: Basic	999,808			1,010,179			1,016,797			1,024,828			1,035,337			(1	)%	(3	)%	1,008,967			1,037,431			(3	)%
Diluted	1,003,665			1,014,357			1,021,731			1,030,404			1,041,138			(1	)%	(4	)%	1,013,242			1,043,585			(3	)%

Earnings per common share: Basic	$	1.07		$	1.04		$	1.11		$	1.09		$	0.94		3	%	14	%	$	3.21		$	2.66		21	%
Diluted	$	1.06		$	1.03		$	1.10		$	1.08		$	0.94		3	%	13	%	$	3.20		$	2.64		21	%
(a) In 1Q18, we adopted new accounting guidance included in Accounting Standards Update ("ASU") 2017-07, Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which required the reclassification of the components of pension and other postretirement costs, other than the service cost component. As a result, staff expense increased and other expense decreased. Prior periods have been reclassified.
(b) Beginning in 1Q18, clearing expense, which was previously included in other expense, was included with sub-custodian expense. Prior periods have been reclassified.
(c) Beginning in 1Q18, merger and integration ("M&I"), litigation and restructuring charges are no longer separately disclosed. Expenses previously reported in this line have been reclassified to existing expense categories, primarily other expense.
N/M - Not meaningful.



THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
	2018									2017
(in millions)	Sept. 30			June 30			March 31			Dec. 31			Sept. 30
Assets
Cash and due from:
Banks	$	5,047		$	5,361		$	4,636		$	5,382		$	5,557
Interest-bearing deposits with the Federal Reserve and other central banks	74,725			75,116			91,431			91,510			75,808
Interest-bearing deposits with banks	14,519			16,134			15,186			11,979			15,256
Federal funds sold and securities purchased under resale agreements	28,722			26,494			28,784			28,135			27,883
Securities	118,641			119,081			118,789			120,370			120,049
Trading assets	7,804			7,035			8,596			6,022			4,666
Loans	53,987			57,776			60,809			61,540			59,068
Allowance for loan losses	(140		)	(145		)	(156		)	(159		)	(161		)
Net loans	53,847			57,631			60,653			61,381			58,907
Premises and equipment	1,832			1,752			1,702			1,634			1,631
Accrued interest receivable	640			663			610			610			547
Goodwill	17,390			17,418			17,596			17,564			17,543
Intangible assets	3,258			3,308			3,370			3,411			3,461
Other assets	22,846			22,507			21,638			23,029			22,287
Subtotal assets of operations	349,271			352,500			372,991			371,027			353,595
Assets of consolidated investment management funds, at fair value	499			428			606			731			802
Total assets	$	349,770		$	352,928		$	373,597		$	371,758		$	354,397
Liabilities
Deposits	$	231,590		$	230,560		$	241,844		$	244,322		$	230,996
Federal funds purchased and securities sold under repurchase agreements	10,158			13,200			21,600			15,163			10,314
Trading liabilities	3,536			3,580			3,365			3,984			3,253
Payables to customers and broker-dealers	18,683			19,123			20,172			20,184			21,176
Commercial paper	735			2,508			3,936			3,075			2,501
Other borrowed funds	2,934			3,053			1,550			3,028			3,353
Accrued taxes and other expenses	5,601			5,452			5,349			6,225			6,070
Other liabilities	6,552			5,443			5,707			6,050			7,195
Long-term debt	28,113			28,260			27,939			27,979			28,408
Subtotal liabilities of operations	307,902			311,179			331,462			330,010			313,266
Liabilities of consolidated investment management funds, at fair value	7			3			11			2			27
Total liabilities	307,909			311,182			331,473			330,012			313,293
Temporary equity
Redeemable noncontrolling interests	211			189			184			179			197
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	27,034			26,981			26,911			26,665			26,588
Retained earnings	28,098			27,306			26,496			25,635			24,757
Accumulated other comprehensive loss, net of tax	(2,983		)	(2,795		)	(2,343		)	(2,357		)	(2,781		)
Less: Treasury stock, at cost	(14,145		)	(13,543		)	(12,892		)	(12,248		)	(11,597		)
Total The Bank of New York Mellon Corporation shareholders’ equity	41,560			41,505			41,728			41,251			40,523
Nonredeemable noncontrolling interests of consolidated investment management funds	90			52			212			316			384
Total permanent equity	41,650			41,557			41,940			41,567			40,907
Total liabilities, temporary equity and permanent equity	$	349,770		$	352,928		$	373,597		$	371,758		$	354,397



THE BANK OF NEW YORK MELLON CORPORATION
FEE AND OTHER REVENUE

														3Q18 vs.										YTD18 vs.
(dollars in millions)	3Q18			2Q18		1Q18			4Q17			3Q17		2Q18		3Q17		YTD18			YTD17			YTD17
Investment services fees:
Asset servicing	$	1,099		$	1,097	$	1,113		$	1,079		$	1,058	—	%	4	%	$	3,309		$	3,109		6	%
Securities lending	58			60		55			51			47		(3	)	23		173			144			20
Clearing services	383			392		414			400			383		(2	)	—		1,189			1,153			3
Issuer services	287			266		260			197			288		8		—		813			780			4
Treasury services	137			140		138			137			141		(2	)	(3	)	415			420			(1	)
Total investment services fees	1,964			1,955		1,980			1,864			1,917		—		2		5,899			5,606			5
Investment management and performance fees (a)(b)	922			910		960			962			901		1		2		2,792			2,622			6
Foreign exchange and other trading revenue:
Foreign exchange	150			171		183			175			158		(12	)	(5	)	504			463			9
Other trading revenue (loss)	5			16		26			(9		)	15		N/M		N/M		47			39			N/M
Total foreign exchange and other trading revenue	155			187		209			166			173		(17	)	(10	)	551			502			10
Financing-related fees	52			53		52			54			54		(2	)	(4	)	157			162			(3	)
Distribution and servicing	34			34		36			38			40		—		(15	)	104			122			(15	)
Investment and other income (loss):
Corporate/bank-owned life insurance	36			31		36			43			37		N/M		N/M		103			110			N/M
Asset-related gains (losses)	7			15		46			—			1		N/M		N/M		68			(1		)	N/M
Expense reimbursements from joint venture	17			19		16			15			18		N/M		N/M		52			49			N/M
Seed capital gains (a)	8			3		—			7			6		N/M		N/M		11			25			N/M
Equity investment income	3			2		—			4			—		N/M		N/M		5			33			N/M
Lease-related gains	—			—		—			4			—		N/M		N/M		—			52			N/M
Other (loss) income	(30		)	—		(16		)	(271		)	1		N/M		N/M		(46		)	(6		)	N/M
Total investment and other income (loss) (a)	41			70		82			(198		)	63		N/M		N/M		193			262			N/M
Total fee revenue	3,168			3,209		3,319			2,886			3,148		(1	)	1		9,696			9,276			5
Net securities gains (losses)	—			1		(49		)	(26		)	19		N/M		N/M		(48		)	29			N/M
Total fee and other revenue	$	3,168		$	3,210	$	3,270		$	2,860		$	3,167	(1	)%	—	%	$	9,648		$	9,305		4	%
(a) Excludes seed capital gains related to consolidated investment management funds, which are reflected in operations of consolidated investment management funds.
(b) On a constant currency basis (Non-GAAP), investment management and performance fees increased 3% compared with 3Q17. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 18 for the reconciliation of this Non-GAAP measure.
N/M - Not meaningful.



THE BANK OF NEW YORK MELLON CORPORATION
AVERAGE BALANCES AND INTEREST RATES
	3Q18				2Q18				1Q18				4Q17				3Q17
	Average balance		Average rate		Average balance		Average rate		Average balance		Average rate		Average balance		Average rate		Average balance		Average rate
(dollars in millions, presented on an FTE basis)	Average balance		Average rate		Average balance		Average rate		Average balance		Average rate		Average balance		Average rate		Average balance		Average rate
Assets
Interest-earning assets:
Interest-bearing deposits with banks (primarily foreign banks)	$	14,691	1.58	%	$	15,748	1.41	%	$	13,850	1.25	%	$	14,068	1.03	%	$	15,899	0.86	%
Interest-bearing deposits held at the Federal Reserve and other central banks	61,216		0.80		69,676		0.77		79,068		0.64		74,961		0.54		70,430		0.50
Federal funds sold and securities purchased under resale agreements (a)	26,738		4.18		28,051		3.29		27,903		2.47		28,417		2.11		28,120		1.67
Margin loans	13,738		3.74		14,838		3.46		15,674		2.98		14,018		2.67		13,206		2.60
Non-margin loans:
Domestic offices	28,628		3.59		29,970		3.44		30,415		3.02		30,462		2.73		29,950		2.87
Foreign offices	11,441		2.98		12,258		2.87		12,517		2.51		12,292		2.21		12,788		2.09
Total non-margin loans	40,069		3.42		42,228		3.27		42,932		2.87		42,754		2.58		42,738		2.64
Securities:
U.S. Government obligations	24,423		2.09		23,199		2.02		23,460		1.88		25,195		1.71		25,349		1.67
U.S. Government agency obligations	64,612		2.40		63,022		2.37		62,975		2.23		62,889		2.07		61,710		2.00
States and political subdivisions - tax-exempt	2,453		2.77		2,677		2.75		2,875		2.62		3,010		3.10		3,226		3.06
Other securities	27,017		1.98		28,863		1.75		29,149		1.69		29,131		1.34		28,804		1.34
Trading securities	4,261		3.05		3,784		3.10		4,183		2.62		2,723		2.02		2,359		2.26
Total securities	122,766		2.28		121,545		2.19		122,642		2.05		122,948		1.85		121,448		1.81
Total interest-earning assets	$	279,218	2.33	%	$	292,086	2.14	%	$	302,069	1.85	%	$	297,166	1.65	%	$	291,841	1.59	%
Noninterest-earning assets	53,123				54,242				56,106				53,620				53,868
Total assets	$	332,341			$	346,328			$	358,175			$	350,786			$	345,709

Liabilities and total equity
Interest-bearing liabilities:
Interest-bearing deposits:
Domestic offices	$	57,942	0.97	%	$	54,200	0.78	%	$	51,612	0.55	%	$	45,280	0.36	%	$	44,212	0.28	%
Foreign offices	90,694		0.42		98,599		0.28		104,092		0.18		102,483		0.09		98,278		0.10
Total interest-bearing deposits	148,636		0.63		152,799		0.45		155,704		0.30		147,763		0.17		142,490		0.16
Federal funds purchased and securities sold under repurchase agreements (a)	14,199		5.33		18,146		3.48		18,963		2.29		20,211		1.83		21,403		1.30
Trading liabilities	1,150		2.32		1,198		2.43		1,569		2.26		1,406		0.38		1,434		0.54
Other borrowed funds	2,747		2.33		2,399		2.40		2,119		1.67		3,421		1.46		2,197		1.38
Commercial paper	3,102		2.10		3,869		2.13		3,131		1.59		3,391		1.23		2,736		1.15
Payables to customers and broker-dealers	16,252		1.23		16,349		1.10		17,101		0.75		17,868		0.49		18,516		0.42
Long-term debt	28,074		3.17		28,349		3.06		28,407		2.49		28,245		2.29		28,138		2.07
Total interest-bearing liabilities	$	214,160	1.37	%	$	223,109	1.14	%	$	226,994	0.82	%	$	222,305	0.65	%	$	216,914	0.57	%
Total noninterest-bearing deposits	60,677				64,768				71,005				69,111				70,168
Other noninterest-bearing liabilities	15,660				16,857				18,571				18,422				17,763
Total The Bank of New York Mellon Corporation shareholders’ equity	41,578				41,292				41,135				40,494				40,322
Noncontrolling interests	266				302				470				454				542
Total liabilities and shareholders’ equity	$	332,341			$	346,328			$	358,175			$	350,786			$	345,709
Net interest margin			1.27	%			1.26	%			1.22	%			1.14	%			1.15	%
Net interest margin (FTE) – Non-GAAP (b)			1.28	%			1.26	%			1.23	%			1.16	%			1.16	%
(a) Includes the impact of offsetting under enforceable netting agreements of approximately $26 billion for 3Q18, $18 billion for 2Q18, $14 billion for 1Q18, $14 billion for 4Q17 and $7 billion for 3Q17.
(b) See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 18 for the reconciliation of this Non-GAAP measure.
Note: Interest and average rates were calculated on an FTE basis, at tax rates of approximately 21% for quarters in 2018 and approximately 35% for quarters in 2017, using dollar amounts in thousands and the actual number of days in the year.



THE BANK OF NEW YORK MELLON CORPORATION
NONINTEREST EXPENSE

											3Q18 vs.								YTD18 vs.
(dollars in millions)	3Q18		2Q18		1Q18		4Q17		3Q17		2Q18		3Q17		YTD18		YTD17		YTD17
Staff (a)	$	1,478	$	1,489	$	1,576	$	1,628	$	1,485	(1	)%	—	%	$	4,543	$	4,405	3	%
Professional, legal and other purchased services	332		328		291		339		305		1		9		951		937		1
Software and equipment	262		266		234		297		233		(2	)	12		762		688		11
Net occupancy	139		156		139		153		141		(11	)	(1	)	434		417		4
Sub-custodian and clearing (b)	106		110		119		102		101		(4	)	5		335		312		7
Distribution and servicing	99		106		106		106		109		(7	)	(9	)	311		313		(1	)
Business development	51		62		51		66		49		(18	)	4		164		163		1
Bank assessment charges	49		47		52		53		51		4		(4	)	148		167		(11	)
Amortization of intangible assets	48		48		49		52		52		—		(8	)	145		157		(8	)
Other (a)(b)(c)	174		135		122		210		128		29		36		431		392		10
Total noninterest expense	$	2,738	$	2,747	$	2,739	$	3,006	$	2,654	—	%	3	%	$	8,224	$	7,951	3	%

Full-time employees at period end	52,000		52,000		52,100		52,500		52,900		—	%	(2	)%
(a) In 1Q18, we adopted new accounting guidance included in ASU 2017-07, Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which required the reclassification of the components of pension and other postretirement costs, other than the service cost component. As a result, staff expense increased and other expense decreased. Prior periods have been reclassified.
(b) Beginning in 1Q18, clearing expense, which was previously included in other expense, was included with sub-custodian expense. Prior periods have been reclassified.
(c) Beginning in 1Q18, M&I, litigation and restructuring charges are no longer separately disclosed. Expenses previously reported in this line have been reclassified to existing expense categories, primarily other expense.



THE BANK OF NEW YORK MELLON CORPORATION
CAPITAL AND LIQUIDITY
	2018									2017
(dollars in millions)	Sept. 30			June 30			March 31			Dec. 31			Sept. 30
Consolidated regulatory capital ratios - fully phased-in basis: (a)
Standardized Approach:
CET1 capital	$	18,519		$	18,386		$	18,334		$	17,838		$	18,141
Tier 1 capital	22,004			21,877			21,835			21,339			21,649
Total capital	23,499			23,375			23,340			22,838			23,157
Risk-weighted assets	148,448			154,612			156,472			155,324			152,995

CET1 ratio	12.5		%	11.9		%	11.7		%	11.5		%	11.9		%
Tier 1 capital ratio	14.8			14.1			14.0			13.7			14.2
Total capital ratio	15.8			15.1			14.9			14.7			15.1

Advanced Approaches:
CET1 capital	$	18,519		$	18,386		$	18,334		$	17,838		$	18,141
Tier 1 capital	22,004			21,877			21,835			21,339			21,649
Total capital	23,305			23,174			23,121			22,608			22,941
Risk-weighted assets	164,770			167,580			171,910			173,711			169,293

CET1 ratio	11.2		%	11.0		%	10.7		%	10.3		%	10.7		%
Tier 1 capital ratio	13.4			13.1			12.7			12.3			12.8
Total capital ratio	14.1			13.8			13.4			13.0			13.6

Tier 1 leverage ratio	7.0		%	6.7		%	6.5		%	6.4		%	6.6		%

SLR:
Leverage exposure	$	341,569		$	355,773		$	367,818		$	360,543		$	355,960
SLR	6.4		%	6.1		%	5.9		%	5.9		%	6.1		%

Average liquidity coverage ratio (“LCR”)	121		%	118		%	116		%	118		%	119		%

Consolidated regulatory capital ratios - transitional basis:
Advanced Approaches:
CET1 ratio	N/A			N/A			N/A			10.7		%	11.1		%
Tier 1 capital ratio	N/A			N/A			N/A			12.7			13.2
Total capital ratio	N/A			N/A			N/A			13.4			14.0

Tier 1 leverage ratio	N/A			N/A			N/A			6.6			6.8
SLR	N/A			N/A			N/A			6.1			6.3
(a) Regulatory capital ratios for Sept. 30, 2018 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.
N/A - Not applicable. Beginning Jan. 1, 2018, regulatory capital ratios are fully phased-in.



THE BANK OF NEW YORK MELLON CORPORATION
KEY MARKET METRICS

																3Q18 vs.										YTD18 vs.
	3Q18			2Q18			1Q18			4Q17			3Q17			2Q18		3Q17		YTD18			YTD17			YTD17
Key market metrics:
S&P 500 Index (a)	2914			2718			2641			2674			2519			7	%	16	%	2914			2519			16	%
S&P 500 Index - daily average	2850			2703			2733			2603			2467			5		16		2762			2397			15
FTSE 100 Index (a)	7510			7637			7057			7688			7373			(2	)	2		7510			7373			2
FTSE 100 Index - daily average	7553			7549			7354			7477			7380			—		2		7485			7348			2
MSCI EAFE (a)	1974			1959			2006			2051			1974			1		—		1974			1974			—
MSCI EAFE - daily average	1964			2018			2073			2005			1934			(3	)	2		2018			1847			9
Bloomberg Barclays Global-Aggregate Total Return Index (a)(b)	473			478			491			485			480			(1	)	(1	)	473			480			(1	)
NYSE and NASDAQ share volume (in billions)	190			208			210			188			179			(9	)	6		608			565			8
Average interest on excess reserves paid by the Federal Reserve	1.96		%	1.79		%	1.53		%	1.30		%	1.25		%	17	bps	71	bps	1.76		%	1.03		%	73	bps

Foreign exchange rates vs. U.S. dollar:
British pound (a)	$	1.30		$	1.32		$	1.41		$	1.35		$	1.34		(2	)%	(3	)%	$	1.30		$	1.34		(3	)%
British pound - average rate	1.30			1.36			1.39			1.33			1.31			(4	)	(1	)	1.35			1.28			5
Euro (a)	1.16			1.17			1.23			1.20			1.18			(1	)	(2	)	1.16			1.18			(2	)
Euro - average rate	1.16			1.19			1.23			1.18			1.17			(3	)	(1	)	1.19			1.13			5
(a) Period end.
(b) Unhedged in U.S. dollar terms.
bps - basis points.



THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SERVICES BUSINESS

																3Q18 vs.										YTD18 vs.
(dollars in millions)	3Q18			2Q18			1Q18			4Q17			3Q17			2Q18		3Q17		YTD18			YTD17			YTD17
Revenue:
Investment services fees:
Asset servicing (ex. securities lending revenue)	$	1,084		$	1,080		$	1,095		$	1,061		$	1,040		—	%	4	%	$	3,259		$	3,057		7	%
Securities lending revenue	52			55			48			45			41			(5	)	27		155			123			26
Clearing services	383			391			414			400			381			(2	)	1		1,188			1,149			3
Issuer services	288			265			260			196			288			9		—		813			779			4
Treasury services	136			140			138			136			141			(3	)	(4	)	414			419			(1	)
Total investment services fees	1,943			1,931			1,955			1,838			1,891			1		3		5,829			5,527			5
Foreign exchange and other trading revenue	161			172			169			168			154			(6	)	5		502			452			11
Other (a)	126			130			126			135			142			(3	)	(11	)	382			407			(6	)
Total fee and other revenue	2,230			2,233			2,250			2,141			2,187			—		2		6,713			6,386			5
Net interest revenue	827			874			844			813			777			(5	)	6		2,545			2,245			13
Total revenue	3,057			3,107			3,094			2,954			2,964			(2	)	3		9,258			8,631			7
Provision for credit losses	1			1			(7		)	(2		)	(2		)	N/M		N/M		(5		)	(5		)	N/M
Noninterest expense (ex. amortization of intangible assets)	1,995			1,931			1,913			2,060			1,837			3		9		5,839			5,538			5
Amortization of intangible assets	35			36			36			37			37			(3	)	(5	)	107			112			(4	)
Total noninterest expense	2,030			1,967			1,949			2,097			1,874			3		8		5,946			5,650			5
Income before taxes	$	1,026		$	1,139		$	1,152		$	859		$	1,092		(10	)%	(6	)%	$	3,317		$	2,986		11	%

Pre-tax operating margin	34		%	37		%	37		%	29		%	37		%					36		%	35		%

Total revenue by line of business:
Asset Servicing	$	1,458		$	1,520		$	1,519		$	1,459		$	1,420		(4	)%	3	%	$	4,497		$	4,144		9	%
Pershing	558			558			581			569			542			—		3		1,697			1,611			5
Issuer Services	453			431			418			352			442			5		2		1,302			1,236			5
Treasury Services	324			329			321			322			316			(2	)	3		974			929			5
Clearance and Collateral Management	264			269			255			252			244			(2	)	8		788			711			11
Total revenue by line of business	$	3,057		$	3,107		$	3,094		$	2,954		$	2,964		(2	)%	3	%	$	9,258		$	8,631		7	%
(a) Other revenue includes investment management fees, financing-related fees, distribution and servicing revenue and investment and other income.
N/M - Not meaningful.



THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SERVICES BUSINESS

											3Q18 vs.								YTD18 vs.
(dollars in millions unless otherwise noted)	3Q18		2Q18		1Q18		4Q17		3Q17		2Q18		3Q17		YTD18		YTD17		YTD17
Average loans	$	35,044	$	38,002	$	39,200	$	38,845	$	38,038	(8	)%	(8	)%	$	37,400	$	40,578	(8	)%
Average assets	$	246,276	$	264,387	$	278,095	$	260,494	$	252,461	(7	)%	(2	)%	$	262,804	$	252,675	4	%
Average deposits	$	192,741	$	203,064	$	214,130	$	204,680	$	198,299	(5	)%	(3	)%	$	203,233	$	198,796	2	%

AUC/A at period end (in trillions) (a)(b)	$	34.5	$	33.6	$	33.5	$	33.3	$	32.2	3	%	7	%	$	34.5	$	32.2	7	%
Market value of securities on loan at period end (in billions) (c)	$	415	$	432	$	436	$	408	$	382	(4	)%	9	%	$	415	$	382	9	%

Pershing
Average active clearing accounts (U.S. platform) (in thousands)	6,108		6,080		6,075		6,126		6,203		—		(2	)%
Average long-term mutual fund assets (U.S. platform)	$	527,336	$	512,645	$	514,542	$	508,873	$	500,998	3	%	5	%
Average investor margin loans (U.S. platform)	$	10,696	$	10,772	$	10,930	$	9,822	$	8,886	(1	)%	20	%

Clearance and Collateral Management
Average tri-party collateral management balances (in billions)	$	2,995	$	2,801	$	2,698	$	2,606	$	2,534	7	%	18	%
(a) Sept. 30, 2018 information is preliminary.
(b) Includes the AUC/A of CIBC Mellon of $1.4 trillion at Sept. 30, 2018 and June 30, 2018 and $1.3 trillion at March 31, 2018, Dec. 31, 2017 and Sept. 30, 2017.
(c) Represents the total amount of securities on loan in our agency securities lending program managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent on behalf of CIBC Mellon clients, which totaled $69 billion at Sept. 30, 2018, $70 billion at June 30, 2018, $73 billion at March 31, 2018, $71 billion at Dec. 31, 2017 and $68 billion at Sept. 30, 2017.



THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT MANAGEMENT BUSINESS

																3Q18 vs.										YTD18 vs.
(dollars in millions)	3Q18			2Q18			1Q18			4Q17			3Q17			2Q18		3Q17		YTD18			YTD17			YTD17
Revenue:
Investment management fees (a)	$	879		$	885		$	898		$	898		$	871		(1	)%	1	%	$	2,662		$	2,530		5	%
Performance fees	30			12			48			50			15			N/M		100		90			44			105
Investment management and performance fees (b)	909			897			946			948			886			1		3		2,752			2,574			7
Distribution and servicing	47			48			50			51			51			(2	)	(8	)	145			156			(7	)
Other (a)	(18		)	(4		)	16			(25		)	(19		)	N/M		N/M		(6		)	(36		)	N/M
Total fee and other revenue (a)	938			941			1,012			974			918			—		2		2,891			2,694			7
Net interest revenue	77			77			76			74			82			—		(6	)	230			255			(10	)
Total revenue	1,015			1,018			1,088			1,048			1,000			—		2		3,121			2,949			6
Provision for credit losses	(2		)	2			2			1			(2		)	N/M		N/M		2			1			N/M
Noninterest expense (ex. amortization of intangible assets)	688			685			692			756			687			—		—		2,065			2,038			1
Amortization of intangible assets	13			12			13			15			15			8		(13	)	38			45			(16	)
Total noninterest expense	701			697			705			771			702			1		—		2,103			2,083			1
Income before taxes	$	316		$	319		$	381		$	276		$	300		(1	)%	5	%	$	1,016		$	865		17	%

Pre-tax operating margin	31		%	31		%	35		%	26		%	30		%					33		%	29		%
Adjusted pre-tax operating margin – Non-GAAP (c)	35		%	35		%	39		%	29		%	34		%					36		%	33		%

Total revenue by line of business:
Asset Management	$	704		$	702		$	770		$	738		$	693		—	%	2	%	$	2,176		$	2,037		7	%
Wealth Management	311			316			318			310			307			(2	)	1		945			912			4
Total revenue by line of business	$	1,015		$	1,018		$	1,088		$	1,048		$	1,000		—	%	2	%	$	3,121		$	2,949		6	%

Average loans	$	16,763		$	16,974		$	16,876		$	16,813		$	16,724		(1	)%	—	%	$	16,871		$	16,481		2	%
Average assets	$	31,283		$	31,504		$	31,963		$	31,681		$	31,689		(1	)%	(1	)%	$	31,577		$	31,372		1	%
Average deposits	$	14,634		$	14,252		$	13,363		$	11,633		$	12,374		3	%	18	%	$	14,088		$	14,283		(1	)%
(a) Total fee and other revenue includes the impact of the consolidated investment management funds, net of noncontrolling interests. Additionally, other revenue includes asset servicing, treasury services, foreign exchange and other trading revenue and investment and other income.
(b) On a constant currency basis, investment management and performance fees increased 3% (Non-GAAP) compared with 3Q17. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 18 for the reconciliation of this Non-GAAP measure.
(c) Net of distribution and servicing expense. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 18 for the reconciliation of this Non-GAAP measure. In 1Q18, the adjusted pre-tax operating margin – Non-GAAP for prior periods was restated to include amortization of intangible assets and the provision for credit losses.
N/M - Not meaningful.



THE BANK OF NEW YORK MELLON CORPORATION
AUM BY PRODUCT, AUM FLOWS AND WEALTH MANAGEMENT CLIENT ASSETS

																3Q18 vs.										YTD18 vs.
(dollars in billions)	3Q18			2Q18			1Q18			4Q17			3Q17			2Q18		3Q17		YTD18			YTD17			YTD17
AUM by product type (a)(b)
Equity	$	167		$	160		$	161		$	161		$	158		4	%	6	%
Fixed income	202			197			206			206			206			3		(2	)
Index	352			334			333			350			333			5		6
Liability-driven investments, including currency overlay	652			663			700			667			622			(2	)	5
Multi-asset and alternative investments	184			181			185			214			207			2		(11	)
Cash	271			270			283			295			298			—		(9	)
Total AUM by product type	$	1,828		$	1,805		$	1,868		$	1,893		$	1,824		1	%	—	%

Changes in AUM (a)(b)
Beginning balance of AUM	$	1,805		$	1,868		$	1,893		$	1,824		$	1,771						$	1,893		$	1,648
Net inflows (outflows):
Long-term strategies:
Equity	(2		)	(3		)	—			(6		)	(2		)					(5		)	(8		)
Fixed income	2			(4		)	7			(2		)	4							5			8
Liability-driven investments, including currency overlay	16			2			13			23			(2		)					31			27
Multi-asset and alternative investments	2			(3		)	(3		)	2			3							(4		)	6
Total long-term active strategies inflows (outflows)	18			(8		)	17			17			3							27			33
Index	(3		)	(7		)	(13		)	(1		)	(3		)					(23		)	(16		)
Total long-term strategies inflows (outflows)	15			(15		)	4			16			—							4			17
Short-term strategies:
Cash	—			(11		)	(14		)	(4		)	10							(25		)	34
Total net inflows (outflows)	15			(26		)	(10		)	12			10							(21		)	51
Net market impact	18			17			(14		)	47			17							21			59
Net currency impact	(10		)	(53		)	29			10			26							(34		)	66
Divestiture/Other (c)	—			(1		)	(30		)	—			—							(31		)	—
Ending balance of AUM	$	1,828		$	1,805		$	1,868		$	1,893		$	1,824		1	%	—	%	$	1,828		$	1,824		—	%

Wealth Management client assets (a)(d)	$	261		$	254		$	246		$	251		$	245		3	%	7	%
(a) Sept. 30, 2018 information is preliminary.
(b) Excludes securities lending cash management assets and assets managed in the Investment Services business.
(c) Primarily reflects a change in methodology beginning in 1Q18 to exclude AUM related to equity method investments as well as the CenterSquare divestiture.
(d) Includes AUM and AUC/A in the Wealth Management business.



THE BANK OF NEW YORK MELLON CORPORATION
OTHER SEGMENT

(in millions)	3Q18			2Q18			1Q18			4Q17			3Q17			YTD18			YTD17
Fee revenue (loss)	$	7		$	40		$	57		$	(221	)	$	50		$	104		$	225
Net securities gains (losses)	—			1			(49		)	(26		)	19			(48		)	29
Total fee and other revenue (loss)	7			41			8			(247		)	69			56			254
Net interest (expense)	(13		)	(35		)	(1		)	(36		)	(20		)	(49		)	(43		)
Total (loss) revenue	(6		)	6			7			(283		)	49			7			211
Provision for credit losses	(2		)	(6		)	—			(5		)	(2		)	(8		)	(14		)
Noninterest expense	6			81			87			135			77			174			212
(Loss) income before taxes	$	(10	)	$	(69	)	$	(80	)	$	(413	)	$	(26	)	$	(159	)	$	13

Average loans and leases	$	2,000		$	2,090		$	2,530		$	1,114		$	1,182		$	2,204		$	1,275
Average assets	$	54,782		$	50,437		$	48,117		$	58,611		$	61,559		$	51,139		$	57,463



THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SECURITIES PORTFOLIO

(dollars in millions)	June 30, 2018			3Q18 change in unrealized gain (loss)			Sept. 30, 2018					Fair value as a % of amortized cost (a)		Unrealized gain (loss)				Ratings (b)
	June 30, 2018						Amortized cost		Fair value									AAA/ AA-		A+/ A-		BBB+/ BBB-		BB+ and lower		Not rated
	Fair value						Amortized cost		Fair value									AAA/ AA-		A+/ A-		BBB+/ BBB-		BB+ and lower		Not rated
Agency RMBS	$	49,741		$	(214	)	$	50,934	$	49,555		97	%	$	(1,379	)		100	%	—	%	—	%	—	%	—	%
U.S. Treasury	23,962			(61		)	24,827		24,622			99		(205		)		100		—		—		—		—
Sovereign debt/sovereign guaranteed	13,069			(45		)	12,338		12,386			100		48				74		6		19		1		—
Agency commercial MBS	11,019			(2		)	11,129		11,050			99		(79		)		100		—		—		—		—
CLOs	3,177			(3		)	3,368		3,363			100		(5		)		98		—		—		1		1
U.S. Government agencies	3,269			(1		)	3,143		3,127			99		(16		)		100		—		—		—		—
Foreign covered bonds	2,976			(8		)	3,066		3,054			100		(12		)		100		—		—		—		—
State and political subdivisions	2,646			(13		)	2,372		2,352			99		(20		)		78		18		—		—		4
Non-agency RMBS (c)	1,621			(17		)	1,265		1,529			121		264				7		9		10		64		10
Non-agency commercial MBS	1,391			1			1,484		1,473			99		(11		)		96		4		—		—		—
Corporate bonds	1,146			(1		)	1,140		1,118			98		(22		)		12		72		16		—		—
Other (d)	4,484			(3		)	4,480		4,464			100		(16		)		98		—		—		—		2
Total investment securities	$	118,501	(e)	$	(367	)	$	119,546	$	118,093	(e)	99	%	$	(1,453	)	(e)(f)	94	%	2	%	3	%	1	%	—	%
(a) Amortized cost reflects historical impairments.
(b) Represents ratings by S&P, or the equivalent.
(c) Includes RMBS that were included in the former Grantor Trust of $943 million at June 30, 2018 and $889 million at Sept. 30, 2018.
(d) Includes commercial paper with a fair value of $699 million at June 30, 2018. There was no commercial paper at Sept. 30, 2018.
(e) Includes net unrealized gains on derivatives hedging securities available-for-sale of $373 million at June 30, 2018 and $593 million at Sept. 30, 2018.
(f) Unrealized losses of $311 million at Sept. 30, 2018 related to available-for-sale securities, net of hedges.



THE BANK OF NEW YORK MELLON CORPORATION
ALLOWANCE FOR CREDIT LOSSES AND NONPERFORMING ASSETS

	2018									2017
(dollars in millions)	Sept. 30			June 30			March 31			Dec. 31			Sept. 30
Allowance for credit losses - beginning of period:
Allowance for loan losses	$	145		$	156		$	159		$	161		$	165
Allowance for lending-related commitments	109			100			102			104			105
Allowance for credit losses - beginning of period	$	254		$	256		$	261		$	265		$	270

Net recoveries (charge-offs):
Charge-offs	(1		)	—			—			—			—
Recoveries	1			1			—			2			1
Total net recoveries (charge-offs)	—			1			—			2			1
Provision for credit losses	(3		)	(3		)	(5		)	(6		)	(6		)
Allowance for credit losses - end of period	$	251		$	254		$	256		$	261		$	265

Allowance for credit losses - end of period:
Allowance for loan losses	$	140		$	145		$	156		$	159		$	161
Allowance for lending-related commitments	111			109			100			102			104
Allowance for credit losses - end of period	$	251		$	254		$	256		$	261		$	265

Allowance for loan losses as a percentage of total loans	0.26		%	0.25		%	0.26		%	0.26		%	0.27		%

Nonperforming assets	$	81		$	82		$	85		$	90		$	94



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. Tangible common shareholders’ equity excludes goodwill and intangible assets, net of deferred tax liabilities. BNY Mellon believes that the return on tangible common equity measure is an additional useful measure for investors because it presents a measure of those assets that can generate income. BNY Mellon has provided a measure of tangible book value per common share, which it believes provides additional useful information as to the level of tangible assets in relation to shares of common stock outstanding.

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 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 presented 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 and year-to-date return on common and tangible common equity ratios are annualized.


Return on common equity and tangible common equity reconciliation
(dollars in millions)	3Q18			2Q18			1Q18			4Q17			3Q17			YTD18			YTD17
Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP	$	1,075		$	1,055		$	1,135		$	1,126		$	983		$	3,265		$	2,789
Add: Amortization of intangible assets	48			48			49			52			52			145			157
Less: Tax impact of amortization of intangible assets	11			11			12			18			17			34			54
Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets – Non-GAAP	$	1,112		$	1,092		$	1,172		$	1,160		$	1,018		$	3,376		$	2,892

Average common shareholders’ equity	$	38,036		$	37,750		$	37,593		$	36,952		$	36,780		$	37,795		$	35,876
Less: Average goodwill	17,391			17,505			17,581			17,518			17,497			17,492			17,415
Average intangible assets	3,283			3,341			3,397			3,437			3,487			3,340			3,532
Add: Deferred tax liability – tax deductible goodwill (a)	1,066			1,054			1,042			1,034			1,561			1,066			1,561
Deferred tax liability – intangible assets (a)	699			709			716			718			1,092			699			1,092
Average tangible common shareholders’ equity – Non-GAAP	$	19,127		$	18,667		$	18,373		$	17,749		$	18,449		$	18,728		$	17,582

Return on common equity – GAAP	11.2		%	11.2		%	12.2		%	12.1		%	10.6		%	11.6		%	10.4		%
Return on tangible common equity – Non-GAAP	23.1		%	23.5		%	25.9		%	25.9		%	21.9		%	24.1		%	22.0		%
(a) Deferred tax liabilities for the periods in 2017 are based on fully phased-in U.S. capital rules.



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	2018									2017
(dollars in millions except common shares)	Sept. 30			June 30			March 31			Dec. 31			Sept. 30
BNY Mellon shareholders’ equity at period end – GAAP	$	41,560		$	41,505		$	41,728		$	41,251		$	40,523
Less: Preferred stock	3,542			3,542			3,542			3,542			3,542
BNY Mellon common shareholders’ equity at period end – GAAP	38,018			37,963			38,186			37,709			36,981
Less: Goodwill	17,390			17,418			17,596			17,564			17,543
Intangible assets	3,258			3,308			3,370			3,411			3,461
Add: Deferred tax liability – tax deductible goodwill (a)	1,066			1,054			1,042			1,034			1,561
Deferred tax liability – intangible assets (a)	699			709			716			718			1,092
BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP	$	19,135		$	19,000		$	18,978		$	18,486		$	18,630

Period-end common shares outstanding (in thousands)	988,777			999,945			1,010,676			1,013,442			1,024,022

Book value per common share – GAAP	$	38.45		$	37.97		$	37.78		$	37.21		$	36.11
Tangible book value per common share – Non-GAAP	$	19.35		$	19.00		$	18.78		$	18.24		$	18.19
(a) Deferred tax liabilities at Dec. 31, 2017 and Sept. 30, 2017 are based on fully phased-in U.S. capital rules.



Net interest margin reconciliation
(dollars in millions)	3Q18			2Q18			1Q18			4Q17			3Q17
Net interest revenue – GAAP	$	891		$	916		$	919		$	851		$	839
Add: Tax equivalent adjustment	5			5			6			11			12
Net interest revenue (FTE) – Non-GAAP	$	896		$	921		$	925		$	862		$	851

Average interest-earning assets	$	279,218		$	292,086		$	302,069		$	297,166		$	291,841

Net interest margin – GAAP (a)	1.27		%	1.26		%	1.22		%	1.14		%	1.15		%
Net interest margin (FTE) – Non-GAAP (a)	1.28		%	1.26		%	1.23		%	1.16		%	1.16		%
(a) Net interest margin is annualized.



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)	3Q18			2Q18			1Q18			4Q17			3Q17			YTD18			YTD17
Income before income taxes – GAAP	$	316		$	319		$	381		$	276		$	300		$	1,016		$	865

Total revenue – GAAP	$	1,015		$	1,018		$	1,088		$	1,048		$	1,000		$	3,121		$	2,949
Less: Distribution and servicing expense	99			103			110			107			110			312			315
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP	$	916		$	915		$	978		$	941		$	890		$	2,809		$	2,634

Pre-tax operating margin – GAAP (a)	31		%	31		%	35		%	26		%	30		%	33		%	29		%
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a)	35		%	35		%	39		%	29		%	34		%	36		%	33		%
(a) Income before taxes divided by total revenue.



Constant currency reconciliations							3Q18 vs.
(dollars in millions)	3Q18			3Q17			3Q17
Consolidated:
Investment management and performance fees	$	922		$	901		2		%
Impact of changes in foreign currency exchange rates	—			(4		)
Adjusted investment management and performance fees – Non-GAAP	$	922		$	897		3		%


Investment Management business:
Investment management and performance fees	$	909		$	886		3		%
Impact of changes in foreign currency exchange rates	—			(4		)
Adjusted investment management and performance fees – Non-GAAP	$	909		$	882		3		%

BNY Mellon Third Quarter 2018 Financial Highlights October 18, 2018

Cautionary Statement A number of statements in our presentations, the accompanying slides and the responses to your questions are “forward-looking statements.” 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 relate to, among other things, The Bank of New York Mellon Corporation’s (the “Corporation”) expectations regarding: capital plans, strategic priorities, financial goals, organic growth and efficiency, talent acquisition, expenses, including costs associated with the Corporation’s relocation strategy and timing of such costs, deposits, taxes, business opportunities, preliminary business metrics and regulatory capital ratios; and statements regarding the Corporation's aspirations, as well as the Corporation’s overall plans, strategies, goals, objectives, expectations, outlooks, estimates, intentions, targets, opportunities and initiatives. These forward-looking statements are based on assumptions that involve risks and uncertainties and that are subject to change based on various important factors (some of which are beyond the Corporation’s control). Actual outcomes may differ materially from those expressed or implied as a result of the factors described under “Forward Looking Statements” and “Risk Factors” in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Annual Report”) and in other filings of the Corporation with the Securities and Exchange Commission (the “SEC”). Such forward-looking statements speak only as of October 18, 2018, and the Corporation 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. For additional information regarding the Corporation, please refer to the Corporation's SEC filings available at www.bnymellon.com/investorrelations. Non-GAAP Measures: In this presentation we discuss some non-GAAP measures in detailing the Corporation’s performance, which exclude certain items or otherwise include components that differ from GAAP. We believe these measures are useful to the investment community in analyzing the financial results and trends of ongoing operations. We believe they facilitate comparisons with prior periods and reflect the principal basis on which our management monitors financial performance. Additional disclosures relating to non-GAAP measures are contained in the Corporation’s reports filed with the SEC, including the 2017 Annual Report, and are available at www.bnymellon.com/ investorrelations. 2 Third Quarter 2018 – Financial Highlights

Financial Highlights • Third quarter earnings of $1.1 billion, or $1.06 per common share, up 13% ◦ Significant items in the third quarter – Litigation increased expenses 2%; $(0.05) per common share – Positive impact of tax adjustment related to U.S. tax legislation and other changes; $0.05 per common share ◦ Returned $885 million of capital to common shareholders through $602 million of share repurchases and $283 million in dividends • Year-to-date earnings of $3.3 billion, or $3.20 per common share, up 21% ◦ Year-to-date returned $2.7 billion of capital to common shareholders through $1.9 billion of share repurchases and $0.8 billion in dividends 3 Third Quarter 2018 – Financial Highlights

Third Quarter 2018 - Financial Highlights Growth vs. Financial Performance Drivers ($ in millions, except per share data) 3Q18 2Q18 3Q17 year-over-year Total revenue $ 4,069 (2)% 1% • Fee revenue, up 1% Fee revenue 3,168 (1) 1 ◦ Reflects higher equity market values, growth Net interest revenue 891 (3) 6 in collateral management and clearance volumes and higher performance fees Provision for credit losses (3) N/M N/M ◦ Partially offset by lower foreign currency Noninterest expense 2,738 — 3 hedging Income before income taxes 1,334 (4) (2) Net income applicable to common shareholders $ 1,075 2% 9% • Net interest revenue, up 6% Operating leverage (a) (134) bps (185) bps ◦ Driven by higher interest rates Pre-tax operating margin 33% (91) bps (126) bps ◦ Partially offset by lower deposits and other borrowings Earnings per common share $ 1.06 3% 13% Common Equity Tier 1 (“CET1 ratio”) (b) 11.2% +27 bps +52 bps • Noninterest expense, up 3% (c) Return on common equity 11.2% +2 bps +62 bps ◦ Continued investments in technology, Return on tangible common equity (“ROTCE”) (d) 23.1% (38) bps +122 bps partially offset by decreases in other expenses Net interest margin 1.27% +1 bps +12 bps ◦ Litigation increased expenses 2% Note: See page 14 for corresponding footnotes in Appendix. N/M - not meaningful; bps - basis points 4 Third Quarter 2018 – Financial Highlights

Third Quarter 2018 - Financial Highlights Total Revenue ($m) Noninterest Expense ($m) Income Before Income Taxes ($m) 1% 3% (2)% $4,138 $2,747 $2,738 $1,394 $4,016 $4,069 $1,368 1,334 $2,654 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 Earnings Per Share Pre-tax Operating Margin ROTCE (a) 13% 34% 34% 23.5% 23.1% $ 1.03 $1.06 33% 21.9% $ 0.94 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 (a) Represents a Non-GAAP measure. See Appendix for a reconciliation. 5 Third Quarter 2018 – Financial Highlights

Year-to-date - Financial Highlights Growth vs. YTD 3Q18 YTD 3Q17 YTD 3Q17 ($ in millions, except per share data) Total revenue $ 12,385 $ 11,815 5% Fee revenue 9,696 9,276 5 Net interest revenue 2,726 2,457 11 Provision for credit losses (11) (18) N/M Noninterest expense 8,224 7,951 3 Income before income taxes 4,172 3,882 7 Net income applicable to common shareholders $ 3,265 $ 2,789 17% Operating leverage (a) +139 bps Pre-tax operating margin 34% 33% +83 bps Earnings per common share $ 3.20 $ 2.64 21% Return on common equity (b) 11.6% 10.4% +116 bps Return on tangible common equity (“ROTCE”) (c) 24.1% 22.0% +212 bps Note: See page 14 for corresponding footnotes in Appendix. N/M - not meaningful; bps - basis points 6 Third Quarter 2018 – Financial Highlights

Year-to-date - Financial Highlights Total Revenue ($m) Noninterest Expense ($m) Income Before Income Taxes ($m) 5% 3% 7% $12,385 $8,224 $4,172 $7,951 $3,882 $11,815 YTD 3Q17 YTD 3Q18 YTD 3Q17 YTD 3Q18 YTD 3Q17 YTD 3Q18 Earnings Per Share Pre-tax Operating Margin ROTCE (a) 21% 34% 24.1% $ 3.20 33% 22.0% $ 2.64 YTD 3Q17 YTD 3Q18 YTD 3Q17 YTD 3Q18 YTD 3Q17 YTD 3Q18 (a) Represents a Non-GAAP measure. See Appendix for a reconciliation. 7 Third Quarter 2018 – Financial Highlights

Investment Services Business Highlights Growth vs. Business Performance Drivers Financial Highlights ($ millions) 3Q18 2Q18 3Q17 year-over-year Total revenue by line of business: • Asset Servicing, up 3% Asset Servicing $ 1,458 (4)% 3 % ◦ Higher equity market values, securities lending volumes, net Pershing 558 — 3 interest revenue and foreign exchange volumes Issuer Services 453 5 2 Treasury Services 324 (2) 3 Clearance and Collateral Management 264 (2) 8 • Pershing, up 3% Total revenue by line of business 3,057 (2) 3 ◦ Higher net interest revenue, equity market values and long- Provision for credit losses 1 N/M N/M term mutual funds balances, partially offset by previously Noninterest expense 2,030 3 8 disclosed lost business Income before taxes $ 1,026 (10)% (6)% Pre-tax operating margin 34% (312) bps (330) bps • Issuer Services, up 2% ◦ Higher net interest revenue in Corporate Trust Growth vs. Key Metrics ($ millions unless otherwise noted) 3Q18 2Q18 3Q17 • Treasury Services, up 3% Foreign exchange and other trading revenue $ 161 (6)% 5 % ◦ Higher net interest revenue and transaction volumes Securities lending revenue $ 52 (5)% 27 % Average loans $ 35,044 (8)% (8)% • Clearance and Collateral Management, up 8% Average deposits $ 192,741 (5)% (3)% ◦ Growth in collateral management, clearance volumes and AUC/A at period end (in trillions) (a) $ 34.5 3 % 7 % net interest revenue Market value of securities on loan at period end (in (b) $ 415 (4)% 9 % billions) • Noninterest expense, up 8% Pershing ◦ Investments in technology and higher litigation expense, Average active clearing accounts (U.S. platform) (in 6,108 — % (2)% thousands) partially offset by lower staff expense Average long-term mutual fund assets (U.S. platform) $ 527,336 3 % 5 % ▪ Litigation increased noninterest expense 3% Average investor margin loans (U.S. platform) $ 10,696 (1)% 20 % Clearance and Collateral Management • AUC/A of $34.5 trillion, up 7% Average tri-party collateral mgmt. balances (in trillions) $ 3.0 7 % 18 % ◦ Net new business and higher equity market values, partially offset by the unfavorable impact of a stronger U.S. dollar Note: See page 14 for corresponding footnotes in Appendix. N/M - not meaningful; bps - basis points 8 Third Quarter 2018 – Financial Highlights

Investment Management Business Highlights Growth vs. Business Performance Drivers Financial Highlights ($ millions) 3Q18 2Q18 3Q17 year-over-year Total revenue by line of business: • Asset Management, up 2% Asset Management $ 704 — % 2% ◦ Higher equity market values and performance fees Wealth Management 311 (2) 1 ◦ Partially offset by the impact of net outflows and the Total revenue by line of business 1,015 — 2 Provision for credit losses (2) N/M N/M divestiture of CenterSquare Noninterest expense 701 1 — Income before taxes $ 316 (1)% 5% Pre-tax operating margin 31% (10) bps 116 bps • AUM of $1.8 trillion, up slightly Adjusted pre-tax operating margin – Non-GAAP (a) 35% (22) bps 83 bps ◦ Higher market values Growth vs. ◦ Partially offset by the divestiture of CenterSquare and Key Metrics ($ millions unless otherwise noted) 3Q18 2Q18 3Q17 Average loans $ 16,763 (1)% —% other changes and the unfavorable impact of a stronger Average deposits $ 14,634 3 % 18% U.S. dollar (b) Wealth Management client assets (in billions) $ 261 3 % 7% (c) Changes in AUM (in billions): 2Q18 3Q17 Beginning balance of AUM $ 1,805 $1,868 $1,771 Net inflows (outflows): Equity (2) (3) (2) Fixed income 2 (4) 4 Liability-driven investments (d) 16 2 (2) Multi-asset and alternative investments 2 (3) 3 Index (3) (7) (3) Total long-term strategies inflows (outflows) 15 (15) — Cash — (11) 10 Total net inflows (outflows) 15 (26) 10 Net market impact 18 17 17 Net currency impact (10) (53) 26 Divestiture/Other — (1) — Ending balance of AUM $ 1,828 $1,805 $1,824 Note: See page 14 for corresponding footnotes in Appendix. N/M - not meaningful; bps - basis points 9 Third Quarter 2018 – Financial Highlights

Other Segment 3Q18 2Q18 3Q17 Business Performance Drivers Financial Highlights ($ millions) year-over-year Fee revenue $ 7 $ 40 $ 50 • Fee revenue decreased Net securities gains — 1 19 ◦ Investments in renewable energy, including the Total fee and other revenue 7 41 69 impact of adjusting the provisional tax estimates Net interest (expense) (13) (35) (20) ◦ Foreign currency hedging Total (loss) revenue (6) 6 49 Provision for credit losses (2) (6) (2) • Noninterest expense decreased primarily reflecting Noninterest expense 6 81 77 lower staff expense (Loss) before taxes $ (10) $ (69) $ (26) 10 Third Quarter 2018 – Financial Highlights

Capital and Liquidity Sept. 30, 2018 June 30, 2018 Dec. 31, 2017 Consolidated regulatory capital ratios: (a) fully phased-in (b) CET1 ratio 11.2% 11.0% 10.3% Tier 1 capital ratio 13.4 13.1 12.3 Total capital ratio 14.1 13.8 13.0 Tier 1 leverage ratio 7.0 6.7 6.4 Supplementary leverage ratio ("SLR") 6.4 6.1 5.9 Average liquidity coverage ratio ("LCR") 121% 118% 118% Book value per common share (c) $ 38.45 $ 37.97 $ 37.21 Tangible book value per common share – Non-GAAP (c) $ 19.35 $ 19.00 $ 18.24 Cash dividends per common share $ 0.28 $ 0.24 $ 0.24 Common dividend payout ratio 26% 23% 22% Common shares outstanding (in thousands) 988,777 999,945 1,013,442 Note: See page 14 for corresponding footnotes in Appendix. 11 Third Quarter 2018 – Financial Highlights

Noninterest Expense Growth vs. Financial Performance Drivers ($ in millions) 3Q18 2Q18 3Q17 year-over-year Staff $ 1,478 (1)% —% • Noninterest expense up 3% Professional, legal and other purchased services 332 1 9 ◦ Investments in technology and higher litigation expense, partially offset by Software and equipment 262 (2) 12 lower staff and distribution and servicing Net occupancy 139 (11) (1) expenses Sub-custodian and clearing 106 (4) 5 ▪ Litigation increased expenses 2% Distribution and servicing 99 (7) (9) Business development 51 (18) 4 • Total cost of relocating our corporate Bank assessment charges 49 4 (4) headquarters is estimated to be $75 Amortization of intangible assets 48 — (8) million, of which $12 million was recorded in 2Q18 Other 174 29 36 ◦ Remaining expense expected in 4Q18 Total noninterest expense $ 2,738 —% 3% 12 Third Quarter 2018 – Financial Highlights

Appendix

Footnotes Third Quarter 2018 - Financial Highlights, Page 4 (a) Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense. (b) Regulatory capital ratios for Sept. 30, 2018 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 each of the periods referenced was the Advanced Approach. (c) Quarterly results are annualized. (d) Quarterly results are annualized. Represents a Non-GAAP measure. See Appendix for a reconciliation. Year-to-date 2018 - Financial Highlights, Page 6 (a) Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense. (b) Year-to-date results are annualized. (c) Year-to-date results are annualized. Represents a Non-GAAP measure. See Appendix for a reconciliation. Investment Services Business Highlights, Page 8 (a) Current period is preliminary. Includes the AUC/A of CIBC Mellon Global Securities Services Company (“CIBC Mellon”), a joint venture with the Canadian Imperial Bank of Commerce, of $1.4 trillion at Sept. 30, 2018 and June 30, 2018 and $1.3 trillion at Sept. 30, 2017. (b) 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 $69 billion at Sept. 30, 2018, $70 billion at June 30, 2018 and $68 billion at Sept. 30, 2017. Investment Management Business Highlights, Page 9 (a) Net of distribution and servicing expense. See corresponding Appendix pages for reconciliation of this Non-GAAP measure. In 1Q18, the adjusted pre-tax operating margin - Non-GAAP for prior periods was restated to include amortization of intangible assets and the provision for credit losses. (b) Current period is preliminary. Includes AUM and AUC/A in the Wealth Management business. (c) Current period is preliminary. Excludes securities lending cash management assets and assets managed in the Investment Services business. (d) Includes currency overlay AUM. Capital and Liquidity, Page 11 (a) Regulatory capital ratios for Sept. 30, 2018 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 included was the Advanced Approaches. (b) On a transitional basis at Dec. 31, 2017, the CET1 ratio was 10.7%, the Tier 1 capital ratio was 12.7%, the Total capital ratio was 13.4%, the Tier 1 leverage ratio was 6.6% and the SLR was 6.1%. (c) Tangible book value per common share – Non-GAAP excludes goodwill and intangible assets, net of deferred tax liabilities. See the Appendix for reconciliation of this Non-GAAP measure. 14 Third Quarter 2018 – Financial Highlights

TO BE UPDATED Return on Common Equity and Tangible Common Equity Reconciliation 3Q18 2Q18 3Q17 YTD YTD ($ in millions) 3Q18 3Q17 Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP $ 1,075 $ 1,055 $ 983 $ 3,265 $ 2,789 Add: Amortization of intangible assets 48 48 52 145 157 Less: Tax impact of amortization of intangible assets 11 11 17 34 54 Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding $ 1,112 $ 1,092 $ 1,018 $ 3,376 $ 2,892 amortization of intangible assets – Non-GAAP Average common shareholders’ equity $ 38,036 $ 37,750 $ 36,780 $ 37,795 $ 35,876 Less: Average goodwill 17,391 17,505 17,497 17,492 17,415 Average intangible assets 3,283 3,341 3,487 3,340 3,532 Add: Deferred tax liability – tax deductible goodwill (a) 1,066 1,054 1,561 1,066 1,561 Deferred tax liability – intangible assets (a) 699 709 1,092 699 1,092 Average tangible common shareholders’ equity – Non-GAAP $ 19,127 $ 18,667 $ 18,449 $ 18,728 $ 17,582 Return on common equity (annualized) – GAAP 11.2% 11.2% 10.6% 11.6% 10.4% Return on tangible common equity (annualized) – Non-GAAP 23.1% 23.5% 21.9% 24.1% 22.0% Book Value and Tangible Book Value Per Share Reconciliation ($ in millions, except common shares) Sept. 30, 2018 June 30, 2018 Dec. 31, 2017 BNY Mellon shareholders’ equity at period end – GAAP $ 41,560 $ 41,505 $ 41,251 Less: Preferred stock 3,542 3,542 3,542 BNY Mellon common shareholders’ equity at period end – GAAP 38,018 37,963 37,709 Less: Goodwill 17,390 17,418 17,564 Intangible assets 3,258 3,308 3,411 Add: Deferred tax liability – tax deductible goodwill (b) 1,066 1,054 1,034 Deferred tax liability – intangible assets (b) 699 709 718 BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP $ 19,135 $ 19,000 $ 18,486 Period-end common shares outstanding (in thousands) 988,777 999,945 1,013,442 Book value per common share – GAAP $ 38.45 $ 37.97 $ 37.21 Tangible book value per common share – Non-GAAP $ 19.35 $ 19.00 $ 18.24 (a) Deferred tax liabilities for 3Q17 are based on fully phased-in U.S. capital rules. (b) Deferred tax liabilities at Dec. 31, 2017 are based on fully phased-in U.S. capital rules. 15 Third Quarter 2018 – Financial Highlights

Pre-tax Operating Margin Reconciliation - Investment Management Business 3Q18 2Q18 3Q17 ($ in millions) Income before income taxes – GAAP $ 316 $ 319 $ 300 Total revenue – GAAP $ 1,015 $ 1,018 $ 1,000 Less: Distribution and servicing expense 99 103 110 Adjusted total revenue, net of distribution and servicing expense – Non-GAAP $ 916 $ 915 $ 890 Pre-tax operating margin – GAAP (a) 31% 31% 30% Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a) 35% 35% 34% (a) Income before taxes divided by total revenue. 16 Third Quarter 2018 – Financial Highlights (a) Other charges include severance, litigation, an asset impairment and investment securities losses related to the sale of certain securities.

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