Form 8-K Bank of New York Mellon For: Jan 16

January 16, 2020 6:34 AM



News Release

BNY MELLON REPORTS FOURTH QUARTER 2019 EARNINGS OF

$1.4 BILLION OR $1.52 PER COMMON SHARE,

INCLUDES $0.50 PER SHARE POSITIVE IMPACT OF NOTABLE ITEMS



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


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

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



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

Notable Items

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

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

Fourth Quarter Results

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


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


•	Net interest revenue decreased 8%

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


•	Continued investments in technology

Investment Services


•	Total revenue decreased 2%


•	Income before taxes decreased 9%


•	AUC/A of $37.1 trillion, increased 12%

Investment Management


•	Total revenue increased 1%


•	Income before taxes decreased 1%


•	AUM of $1.9 trillion, increased 11%

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

CEO Commentary

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

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



Media Relations: Jennifer Hendricks Sullivan (212) 635-1374	Investor Relations: Magda Palczynska (212) 635-8529
(b) For information on this Non-GAAP measure, see “Supplemental Information – Explanation of GAAP and Non-GAAP financial measures” on page 9.
Note: Above comparisons are 4Q19 vs. 4Q18.

BNY Mellon 4Q19 Earnings Release

CONSOLIDATED FINANCIAL HIGHLIGHTS



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


(a)	Includes a gain on sale of an equity investment, severance, net securities losses and litigation expense.


(b)	Includes adjustments to provisional estimates for U.S. tax legislation and other changes, severance, expenses associated with consolidating real estate and litigation expense.


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


(d)	Does not foot due to rounding.

bps – basis points.

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


•	Total revenue increased 19%, or decreased slightly excluding the notable items (a), primarily reflecting:


•	Fee revenue increased 26%, primarily reflecting the gain on sale of an equity investment. Excluding this gain, fee revenue increased slightly, primarily reflecting higher investment services fees, partially offset by lower foreign exchange revenue.


•	Net interest revenue decreased 8% primarily reflecting the impact of lower interest rates on interest-earning assets and lower noninterest-bearing deposits. This was partially offset by the benefit of lower deposit and funding rates and higher interest-bearing deposits.


•	Noninterest expense decreased 1%, or increased 2% excluding notable items (a). The increase primarily reflects the continued investments in technology.


•	Effective tax rate of 20.5%.

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


•	AUC/A of $37.1 trillion, increased 12%, primarily reflecting higher market values and client inflows.


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

Capital and liquidity


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


•	Return on common equity (“ROE”) of 15%; Return on tangible common equity (“ROTCE”) of 29% (a).


•	Common Equity Tier 1 (“CET1”) ratio – 11.5%.


•	Supplementary leverage ratio (“SLR”) – 6.1%.


•	Average liquidity coverage ratio (“LCR”) – 120%.


•	Total Loss Absorbing Capacity (“TLAC”) ratios exceed minimum requirements.


(a)	See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” on page 9 for additional information.

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

Page - 2

BNY Mellon 4Q19 Earnings Release

FULL-YEAR CONSOLIDATED FINANCIAL HIGHLIGHTS



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


(a)	Includes a gain on sale of an equity investment, severance, net securities losses and litigation expense recorded in 4Q19. Also includes a lease-related impairment and a net reduction of reserves for tax-related exposure of certain investment management funds recorded in 3Q19.

(b)

Includes adjustments to provisional estimates for U.S. tax legislation and other changes, severance, expenses associated with consolidating real estate and litigation expense, each recorded in 4Q18. Also includes expenses associated with consolidating real estate recorded in 2Q18 and adjustments to provisional estimates for U.S. tax legislation and other changes and litigation expense, both recorded in 3Q18.


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

bps – basis points.

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

Page - 3

BNY Mellon 4Q19 Earnings Release

INVESTMENT SERVICES BUSINESS HIGHLIGHTS



(dollars in millions, unless otherwise noted; not meaningful - N/M)										4Q19 vs.
	4Q19			3Q19			4Q18			3Q19		4Q18
Total revenue by line of business:
Asset Servicing	$	1,397		$	1,405		$	1,435		(1	)%	(3	)%
Pershing	570			568			558			—		2
Issuer Services	415			466			441			(11	)	(6	)
Treasury Services	329			312			328			5		—
Clearance and Collateral Management	280			293			278			(4	)	1
Total revenue by line of business	2,991			3,044			3,040			(2	)	(2	)
Provision for credit losses	(5		)	(15		)	6			N/M		N/M
Noninterest expense	2,161			1,965			2,112			10		2
Income before taxes	$	835		$	1,094		$	922		(24	)%	(9	)%

Pre-tax operating margin	28		%	36		%	30		%

Foreign exchange and other trading revenue	$	151		$	160		$	163		(6	)%	(7	)%
Securities lending revenue	$	40		$	39		$	43		3	%	(7	)%

Metrics:
Average loans	$	34,238		$	32,758		$	35,540		5	%	(4	)%
Average deposits	$	215,388		$	208,044		$	203,416		4	%	6	%

AUC/A at period end (in trillions) (current period is preliminary) (a)	$	37.1		$	35.8		$	33.1		4	%	12	%
Market value of securities on loan at period end (in billions) (b)	$	378		$	362		$	373		4	%	1	%


(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 $1.5 trillion at Dec. 31, 2019, $1.4 trillion at Sept. 30, 2019 and $1.2 trillion at Dec. 31, 2018.


(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 $60 billion at Dec. 31, 2019, $66 billion at Sept. 30, 2019 and $58 billion at Dec. 31, 2018.

KEY DRIVERS


•	The drivers of the total revenue variances by line of business are indicated below.


•	Asset Servicing - The year-over-year decrease primarily reflects lower net interest revenue and foreign exchange revenue, partially offset by the impact of higher equity markets. The sequential decrease primarily reflects lower net interest revenue.


•	Pershing - The year-over-year increase primarily reflects growth in client assets and accounts, partially offset by lower net interest revenue.


•	Issuer Services - Both decreases primarily reflect lower Depositary Receipts revenue. The year-over-year decrease is partially offset by higher client activity in Corporate Trust. The sequential decrease is partially offset by higher net interest revenue in Corporate Trust.


•	Treasury Services - Year-over-year, higher payment fees were offset by lower net interest revenue. The sequential increase primarily reflects higher net interest revenue and payment fees.


•	Clearance and Collateral Management - The year-over-year increase primarily reflects growth in collateral management and clearance volumes, which were mostly offset by lower net interest revenue. The sequential decrease primarily reflects lower client activity.


•	Noninterest expense increased year-over-year primarily driven by continued investments in technology. The sequential increase primarily reflects higher severance expense, continued investments in technology and higher litigation expense.

Page - 4

BNY Mellon 4Q19 Earnings Release

INVESTMENT MANAGEMENT BUSINESS HIGHLIGHTS



(dollars in millions, unless otherwise noted; not meaningful - N/M)										4Q19 vs.
	4Q19			3Q19			4Q18			3Q19		4Q18
Total revenue by line of business:
Asset Management	$	688		$	605		$	660		14	%	4	%
Wealth Management	287			285			303			1		(5	)
Total revenue by line of business	975			890			963			10		1
Provision for credit losses	—			—			1			N/M		N/M
Noninterest expense	730			590			715			24		2
Income before taxes	$	245		$	300		$	247		(18	)%	(1	)%

Pre-tax operating margin	25		%	34		%	26		%
Adjusted pre-tax operating margin – Non-GAAP (a)	28		%	38		%	29		%

Metrics:
Average loans	$	16,505		$	16,260		$	16,485		2	%	—
Average deposits	$	15,195		$	14,083		$	14,893		8	%	2	%

AUM (in billions) (current period is preliminary) (b)	$	1,910		$	1,881		$	1,722		2	%	11	%
Wealth Management client assets (in billions) (current period is preliminary) (c)	$	266		$	259		$	239		3	%	11	%


(a)	Net of distribution and servicing expense. See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” on page 9 for information on this Non-GAAP measure.


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


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

KEY DRIVERS


•	The drivers of the total revenue variances by line of business are indicated below.


•	Asset Management - The year-over-year increase primarily reflects higher market values and the impact of hedging activities, partially offset by the cumulative AUM outflows since 4Q18. The sequential increase primarily reflects timing of performance fees, the impact of hedging activities and higher market values.


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


•	Noninterest expense increased year-over-year primarily reflecting higher staff expense. The sequential increase primarily reflects the net reduction of the reserves for tax-related exposure of certain investment management funds recorded in 3Q19 and higher staff expense, including severance expense.

Page - 5

BNY Mellon 4Q19 Earnings Release

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




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

KEY DRIVERS

•

Fee revenue, net securities losses and net interest expense include corporate treasury and other investment activity, including hedging activity which offsets between fee revenue and net interest expense. Total revenue increased primarily reflecting the gain on the sale of an equity investment. Net interest expense decreased sequentially primarily reflecting the lease-related impairment of $70 million recorded in 3Q19.


•	Noninterest expense decreased year-over-year primarily reflecting the expenses associated with relocating our corporate headquarters recorded in 4Q18 and lower severance expense. The sequential increase primarily reflects higher severance expense, partially offset by lower other staff expense.

NOTABLE ITEMS BY BUSINESS SEGMENT



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

IS - Investment Services

IM - Investment Management

Page - 6

BNY Mellon 4Q19 Earnings Release

CAPITAL AND LIQUIDITY



Capital and liquidity ratios	Dec. 31, 2019			Sept. 30, 2019			Dec. 31, 2018
Consolidated regulatory capital ratios: (a)
CET1 ratio	11.5		%	11.1		%	10.7		%
Tier 1 capital ratio	13.6			13.2			12.8
Total capital ratio	14.4			14.0			13.6
Tier 1 leverage ratio	6.6			6.5			6.6
SLR	6.1			6.0			6.0
BNY Mellon shareholders’ equity to total assets ratio	10.9		%	11.0		%	11.2		%
BNY Mellon common shareholders’ equity to total assets ratio	9.9		%	10.1		%	10.2		%

Average LCR	120		%	117		%	118		%

Book value per common share (b)	$	42.12		$	40.75		$	38.63
Tangible book value per common share – Non-GAAP (b)	$	21.33		$	20.59		$	19.04
Common shares outstanding (in thousands)	900,683			922,199			960,426


(a)	Regulatory capital ratios for Dec. 31, 2019 are preliminary. For our CET1, Tier 1 capital and Total capital ratios, our effective capital ratios under the U.S. capital rules are the lower of the ratios as calculated under the Standardized and Advanced Approaches, which for the periods noted above was the Advanced Approaches.


(b)	Tangible book value per common share – Non-GAAP excludes goodwill and intangible assets, net of deferred tax liabilities. See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” on page 9 for information on this Non-GAAP measure.

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

NET INTEREST REVENUE



Net interest revenue											4Q19 vs.
(dollars in millions; not meaningful - N/M)	4Q19			3Q19				4Q18			3Q19		4Q18
Net interest revenue	$	815		$	730			$	885		12	%	(8	)%
Add: Tax equivalent adjustment	2			3				4			N/M		N/M
Net interest revenue, on a fully taxable equivalent (“FTE”) basis – Non-GAAP (a)	$	817		$	733			$	889		11	%	(8	)%

Net interest margin	1.09		%	0.99		%	(b)	1.24		%	10	bps	(15	) bps
Net interest margin (FTE) – Non-GAAP (a)	1.09		%	1.00		%	(b)	1.24		%	9	bps	(15	) bps


(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)	The lease-related impairment decreased the net interest margin for 3Q19 by 10 basis points.

bps – basis points.

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

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

Page - 7

BNY Mellon 4Q19 Earnings Release

THE BANK OF NEW YORK MELLON CORPORATION

Condensed Consolidated Income Statement



(in millions)	Quarter ended									Year-to-date
	Dec. 31, 2019			Sept. 30, 2019			Dec. 31, 2018			Dec. 31, 2019			Dec. 31, 2018

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


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



Earnings per share applicable to the common shareholders of The Bank of New York Mellon Corporation	Quarter ended						Year-to-date
	Dec. 31, 2019		Sept. 30, 2019		Dec. 31, 2018		Dec. 31, 2019		Dec. 31, 2018
(in dollars)	Dec. 31, 2019		Sept. 30, 2019		Dec. 31, 2018		Dec. 31, 2019		Dec. 31, 2018
Basic	$	1.52	$	1.07	$	0.84	$	4.53	$	4.06
Diluted	$	1.52	$	1.07	$	0.84	$	4.51	$	4.04

Page - 8

BNY Mellon 4Q19 Earnings Release

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

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

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

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

CAUTIONARY STATEMENT

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

Page - 9

BNY Mellon 4Q19 Earnings Release

ABOUT BNY MELLON

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

CONFERENCE CALL INFORMATION

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

Investors and analysts wishing to access the conference call and audio webcast may do so by dialing (800) 390-5696 (U.S.) or (720) 452-9082 (International), and using the passcode: 807070, or by logging onto www.bnymellon.com/investorrelations. Earnings materials will be available at www.bnymellon.com/investorrelations beginning at approximately 6:30 a.m. EST on Jan. 16, 2020. Replays of the conference call and audio webcast will be available beginning Jan. 16, 2020 at approximately 2:00 p.m. EST through Feb. 15, 2020 by dialing (888) 203-1112 (U.S.) or (719) 457-0820 (International), and using the passcode: 5375940. The archived version of the conference call and audio webcast will also be available at www.bnymellon.com/investorrelations for the same time period.

Page - 10

The Bank of New York Mellon Corporation

Financial Supplement

Fourth Quarter 2019



Table of Contents




Consolidated Results		Page
Consolidated Financial Highlights		3
Condensed Consolidated Income Statement		4
Condensed Consolidated Balance Sheet		5
Fee and Other Revenue		6
Average Balances and Interest Rates		7
Capital and Liquidity		8

Business Segment Results
Investment Services Business		9
Investment Management Business		11
AUM by Product, AUM Flows and Wealth Management Client Assets		12
Other Segment		13

Other
Investment Securities Portfolio		14
Allowance for Credit Losses and Nonperforming Assets		15

Supplemental Information – Explanation of GAAP and Non-GAAP Financial Measures		16



THE BANK OF NEW YORK MELLON CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(dollars in millions, except per common share amounts, or unless otherwise noted)																4Q19 vs.										FY19 vs.
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		FY19			FY18			FY18
Selected income statement data
Fee revenue	$	3,971		$	3,129		$	3,105		$	3,031		$	3,146		27	%	26	%	$	13,236		$	12,842		3	%
Net securities (losses) gains	(25		)	(1		)	7			1			—			N/M		N/M		(18		)	(48		)	N/M
Fee and other revenue	3,946			3,128			3,112			3,032			3,146			26		25		13,218			12,794			3
Income (loss) from consolidated investment management funds	17			3			10			26			(24		)	N/M		N/M		56			(13		)	N/M
Net interest revenue	815			730			802			841			885			12		(8	)	3,188			3,611			(12	)
Total revenue	4,778			3,861			3,924			3,899			4,007			24		19		16,462			16,392			—
Provision for credit losses	(8		)	(16		)	(8		)	7			—			N/M		N/M		(25		)	(11		)	N/M
Noninterest expense	2,964			2,590			2,647			2,699			2,987			14		(1	)	10,900			11,211			(3	)
Income before income taxes	1,822			1,287			1,285			1,193			1,020			42		79		5,587			5,192			8
Provision for income taxes	373			246			264			237			150			52		149		1,120			938			19
Net income	$	1,449		$	1,041		$	1,021		$	956		$	870		39	%	67	%	$	4,467		$	4,254		5	%
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	1,391		$	1,002		$	969		$	910		$	832		39	%	67	%	$	4,272		$	4,097		4	%

Diluted earnings per common share	$	1.52		$	1.07		$	1.01		$	0.94		$	0.84		42	%	81	%	$	4.51		$	4.04		12	%
Average common shares and equivalents outstanding - diluted (in thousands)	914,739			935,677			953,928			965,960			988,650			(2	)%	(7	)%	943,109			1,007,141			(6	)%

Financial ratios (Quarterly returns are annualized)
Pre-tax operating margin	38		%	33		%	33		%	31		%	25		%					34		%	32		%
Return on common equity (a)	14.6		%	10.6		%	10.4		%	10.0		%	8.7		%					11.4		%	10.8		%
Return on tangible common equity – Non-GAAP (a)	29.3		%	21.4		%	21.2		%	20.7		%	17.9		%					23.2		%	22.5		%
Non-U.S. revenue as a percentage of total revenue	31		%	37		%	36		%	36		%	36		%					35		%	37		%

Period end
Assets under custody and/or administration (“AUC/A”) (in trillions) (b)	$	37.1		$	35.8		$	35.5		$	34.5		$	33.1		4	%	12	%
Assets under management (“AUM”) (in trillions)	$	1.91		$	1.88		$	1.84		$	1.84		$	1.72		2	%	11	%

Full-time employees	48,400			48,700			49,100			49,800			51,300			(1	)%	(6	)%
Book value per common share (a)	$	42.12		$	40.75		$	40.30		$	39.36		$	38.63
Tangible book value per common share – Non-GAAP (a)	$	21.33		$	20.59		$	20.45		$	19.74		$	19.04
Cash dividends per common share	$	0.31		$	0.31		$	0.28		$	0.28		$	0.28
Common dividend payout ratio	20		%	29		%	28		%	30		%	33		%
Closing stock price per common share	$	50.33		$	45.21		$	44.15		$	50.43		$	47.07
Market capitalization	$	45,331		$	41,693		$	41,619		$	48,288		$	45,207
Common shares outstanding (in thousands)	900,683			922,199			942,662			957,517			960,426

Capital ratios at period end (c)
Common Equity Tier 1 ("CET1") ratio	11.5		%	11.1		%	11.1		%	11.1		%	10.7		%
Tier 1 capital ratio	13.6		%	13.2		%	13.2		%	13.2		%	12.8		%
Total capital ratio	14.4		%	14.0		%	14.0		%	14.0		%	13.6		%
Supplementary leverage ratio ("SLR")	6.1		%	6.0		%	6.3		%	6.3		%	6.0		%
(a) Non-GAAP information, for all periods presented, excludes goodwill and intangible assets, net of deferred tax liabilities. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 for the reconciliation of Non-GAAP measures.
(b) Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.5 trillion at Dec. 31, 2019, $1.4 trillion at Sept. 30, 2019 and June 30, 2019, $1.3 trillion at March 31, 2019 and $1.2 trillion at Dec. 31, 2018.
(c) Regulatory capital ratios for Dec. 31, 2019 are preliminary. All risk-based capital ratios are presented using Advanced Approaches.
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)																4Q19 vs.										FY19 vs.
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		FY19			FY18			FY18
Revenue
Investment services fees:
Asset servicing fees	$	1,148		$	1,152		$	1,141		$	1,122		$	1,126		—	%	2	%	$	4,563		$	4,608		(1	)%
Clearing services fees (a)	421			419			410			398			398			—		6		1,648			1,616			2
Issuer services fees	264			324			291			251			286			(19	)	(8	)	1,130			1,099			3
Treasury services fees	147			140			140			132			139			5		6		559			554			1
Total investment services fees (a)	1,980			2,035			1,982			1,903			1,949			(3	)	2		7,900			7,877			—
Investment management and performance fees (a)	883			832			833			841			884			6		—		3,389			3,647			(7	)
Foreign exchange and other trading revenue	168			150			166			170			181			12		(7	)	654			732			(11	)
Financing-related fees	46			49			50			51			50			(6	)	(8	)	196			207			(5	)
Distribution and servicing	34			33			31			31			35			3		(3	)	129			139			(7	)
Investment and other income	860			30			43			35			47			N/M		N/M		968			240			N/M
Total fee revenue	3,971			3,129			3,105			3,031			3,146			27		26		13,236			12,842			3
Net securities (losses) gains	(25		)	(1		)	7			1			—			N/M		N/M		(18		)	(48		)	N/M
Total fee and other revenue	3,946			3,128			3,112			3,032			3,146			26		25		13,218			12,794			3
Income (loss) from consolidated investment management funds	17			3			10			26			(24		)	N/M		N/M		56			(13		)	N/M
Net interest revenue	815			730			802			841			885			12		(8	)	3,188			3,611			(12	)
Total revenue	4,778			3,861			3,924			3,899			4,007			24		19		16,462			16,392			—
Provision for credit losses	(8		)	(16		)	(8		)	7			—			N/M		N/M		(25		)	(11		)	N/M
Noninterest expense
Staff	1,639			1,479			1,421			1,524			1,602			11		2		6,063			6,145			(1	)
Professional, legal and other purchased services	367			316			337			325			383			16		(4	)	1,345			1,334			1
Software and equipment	326			309			304			283			300			6		9		1,222			1,062			15
Net occupancy	151			138			138			137			196			9		(23	)	564			630			(10	)
Sub-custodian and clearing	119			111			115			105			115			7		3		450			450			—
Distribution and servicing	92			97			94			91			95			(5	)	(3	)	374			406			(8	)
Business development	65			47			56			45			64			38		2		213			228			(7	)
Bank assessment charges	32			31			31			31			22			3		45		125			170			(26	)
Amortization of intangible assets	28			30			30			29			35			(7	)	(20	)	117			180			(35	)
Other	145			32			121			129			175			353		(17	)	427			606			(30	)
Total noninterest expense	2,964			2,590			2,647			2,699			2,987			14		(1	)	10,900			11,211			(3	)
Income before income taxes	1,822			1,287			1,285			1,193			1,020			42		79		5,587			5,192			8
Provision for income taxes	373			246			264			237			150			52		149		1,120			938			19
Net income	1,449			1,041			1,021			956			870			39		67		4,467			4,254			5
Net (income) loss attributable to noncontrolling interests	(9		)	(3		)	(4		)	(10		)	11			N/M		N/M		(26		)	12			N/M
Preferred stock dividends	(49		)	(36		)	(48		)	(36		)	(49		)	N/M		N/M		(169		)	(169		)	—
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	1,391		$	1,002		$	969		$	910		$	832		39	%	67	%	$	4,272		$	4,097		4	%

Average common shares and equivalents outstanding: Basic	911,324			933,264			951,281			962,397			984,343			(2	)%	(7	)%	939,623			1,002,922			(6	)%
Diluted	914,739			935,677			953,928			965,960			988,650			(2	)%	(7	)%	943,109			1,007,141			(6	)%

Earnings per common share: Basic	$	1.52		$	1.07		$	1.01		$	0.94		$	0.84		42	%	81	%	$	4.53		$	4.06		12	%
Diluted	$	1.52		$	1.07		$	1.01		$	0.94		$	0.84		42	%	81	%	$	4.51		$	4.04		12	%
(a) In 1Q19, we reclassified certain platform-related fees to clearing services fees from investment management and performance fees. Prior periods have been reclassified.
N/M - Not meaningful.



THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
	2019												2018
(in millions)	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
Assets
Cash and due from banks	$	4,830		$	6,718		$	5,556		$	5,980		$	5,864
Interest-bearing deposits with the Federal Reserve and other central banks	95,042			73,811			69,700			60,699			67,988
Interest-bearing deposits with banks	14,811			15,417			15,491			13,681			14,148
Federal funds sold and securities purchased under resale agreements	30,182			43,723			61,201			40,158			46,795
Securities	123,033			122,340			120,142			117,504			119,791
Trading assets	13,571			10,180			8,629			6,868			7,035
Loans	54,953			54,881			52,396			53,487			56,564
Allowance for loan losses	(122		)	(127		)	(146		)	(146		)	(146		)
Net loans	54,831			54,754			52,250			53,341			56,418
Premises and equipment (a)	3,625			3,149			2,970			3,010			1,832
Accrued interest receivable	624			596			658			651			671
Goodwill	17,386			17,248			17,337			17,367			17,350
Intangible assets	3,107			3,124			3,160			3,193			3,220
Other assets	20,221			21,727			23,737			23,228			21,298
Subtotal assets of operations	381,263			372,787			380,831			345,680			362,410
Assets of consolidated investment management funds, at fair value	245			381			337			452			463
Total assets	$	381,508		$	373,168		$	381,168		$	346,132		$	362,873
Liabilities
Deposits	$	259,466		$	249,660		$	252,877		$	222,382		$	238,778
Federal funds purchased and securities sold under repurchase agreements	11,401			11,796			11,757			11,761			14,243
Trading liabilities	4,841			4,756			3,768			3,892			3,479
Payables to customers and broker-dealers	18,758			18,364			18,946			19,310			19,731
Commercial paper	3,959			3,538			8,894			2,773			1,939
Other borrowed funds	599			820			1,921			3,932			3,227
Accrued taxes and other expenses	5,642			5,081			5,045			4,686			5,669
Other liabilities (a)	7,612			9,796			7,916			8,050			5,774
Long-term debt	27,501			27,872			28,203			27,874			29,163
Subtotal liabilities of operations	339,779			331,683			339,327			304,660			322,003
Liabilities of consolidated investment management funds, at fair value	1			15			6			3			2
Total liabilities	339,780			331,698			339,333			304,663			322,005
Temporary equity
Redeemable noncontrolling interests	143			147			136			122			129
Permanent equity
Preferred stock	3,542			3,542			3,542			3,542			3,542
Common stock	14			14			14			14			14
Additional paid-in capital	27,515			27,471			27,406			27,349			27,118
Retained earnings	31,894			30,789			30,081			29,382			28,652
Accumulated other comprehensive loss, net of tax	(2,638		)	(2,893		)	(2,688		)	(2,990		)	(3,171		)
Less: Treasury stock, at cost	(18,844		)	(17,803		)	(16,822		)	(16,072		)	(15,517		)
Total The Bank of New York Mellon Corporation shareholders’ equity	41,483			41,120			41,533			41,225			40,638
Nonredeemable noncontrolling interests of consolidated investment management funds	102			203			166			122			101
Total permanent equity	41,585			41,323			41,699			41,347			40,739
Total liabilities, temporary equity and permanent equity	$	381,508		$	373,168		$	381,168		$	346,132		$	362,873
(a) In 1Q19, we adopted new accounting guidance included in Accounting Standards Update 2016-02, Leases, prospectively, which required the recognition of right-of-use assets (included in premises and equipment) and lease liabilities (included in other liabilities).



THE BANK OF NEW YORK MELLON CORPORATION
FEE AND OTHER REVENUE

																4Q19 vs.										FY19 vs.
(dollars in millions)	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		FY19			FY18			FY18
Investment services fees:
Asset servicing fees	$	1,104		$	1,109		$	1,097		$	1,074		$	1,079		—	%	2	%	$	4,384		$	4,388		—	%
Securities lending revenue	44			43			44			48			47			2		(6	)	179			220			(19	)
Clearing services fees (a)	421			419			410			398			398			—		6		1,648			1,616			2
Issuer services fees	264			324			291			251			286			(19	)	(8	)	1,130			1,099			3
Treasury services fees	147			140			140			132			139			5		6		559			554			1
Total investment services fees (a)	1,980			2,035			1,982			1,903			1,949			(3	)	2		7,900			7,877			—
Investment management and performance fees (b)
Investment management fee	835			830			831			810			830			1		1		3,306			3,503			(6	)
Performance fees	48			2			2			31			54			N/M		N/M		83			144			(42	)
Total investment management and performance fees (a)(c)	883			832			833			841			884			6		—		3,389			3,647			(7	)
Foreign exchange and other trading revenue:
Foreign exchange	138			129			150			160			159			7		(13	)	577			663			(13	)
Other trading revenue	30			21			16			10			22			N/M		N/M		77			69			N/M
Total foreign exchange and other trading revenue	168			150			166			170			181			12		(7	)	654			732			(11	)
Financing-related fees	46			49			50			51			50			(6	)	(8	)	196			207			(5	)
Distribution and servicing	34			33			31			31			35			3		(3	)	129			139			(7	)
Investment and other income:
Corporate/bank-owned life insurance	43			33			32			30			42			N/M		N/M		138			145			N/M
Expense reimbursements from joint venture	20			21			19			19			19			N/M		N/M		79			71			N/M
Asset-related gains	815			2			1			1			2			N/M		N/M		819			70			N/M
Seed capital gains (losses) (b)	4			—			8			2			(8		)	N/M		N/M		14			3			N/M
Other (loss)	(22		)	(26		)	(17		)	(17		)	(8		)	N/M		N/M		(82		)	(49		)	N/M
Total investment and other income (b)	860			30			43			35			47			N/M		N/M		968			240			N/M
Total fee revenue	3,971			3,129			3,105			3,031			3,146			27		26		13,236			12,842			3
Net securities (losses) gains	(25		)	(1		)	7			1			—			N/M		N/M		(18		)	(48		)	N/M
Total fee and other revenue	$	3,946		$	3,128		$	3,112		$	3,032		$	3,146		26	%	25	%	$	13,218		$	12,794		3	%
(a) In 1Q19, we reclassified certain platform-related fees to clearing services fees from investment management and performance fees. Prior periods have been reclassified.
(b) Excludes seed capital gains related to consolidated investment management funds, which are reflected in operations of consolidated investment management funds.
(c) On a constant currency basis (Non-GAAP), investment management and performance fees were essentially unchanged compared with 4Q18. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.
N/M - Not meaningful.



THE BANK OF NEW YORK MELLON CORPORATION
AVERAGE BALANCES AND INTEREST RATES
	4Q19				3Q19					2Q19				1Q19				4Q18
	Average balance		Average rate		Average balance		Average rate			Average balance		Average rate		Average balance		Average rate		Average balance		Average rate
(dollars in millions; average rates are annualized)	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 the Federal Reserve and other central banks	$	61,627	0.60	%	$	60,030	0.67	%		$	61,756	0.72	%	$	63,583	0.87	%	$	63,916	0.89	%
Interest-bearing deposits with banks (primarily foreign banks)	15,788		1.63		15,324		1.89			13,666		1.87		13,857		1.85		14,666		1.67
Federal funds sold and securities purchased under resale agreements (a)	38,846		4.62		40,816		6.42			38,038		5.99		28,968		6.63		28,843		5.98
Margin loans	11,609		3.25		10,303		4.02			10,920		4.36		12,670		4.34		13,369		4.08
Non-margin loans:
Domestic offices	29,690		3.36		29,285		2.75		(b)	29,492		3.86		28,177		3.85		29,576		3.73
Foreign offices	11,418		2.70		11,247		2.97			9,961		3.29		10,511		3.32		10,889		3.10
Total non-margin loans	41,108		3.18		40,532		2.81		(b)	39,453		3.71		38,688		3.70		40,465		3.56
Securities:
U.S. government obligations	18,444		2.08		19,315		2.11			18,870		2.19		23,597		2.22		24,531		2.14
U.S. government agency obligations	67,494		2.36		67,235		2.49			66,445		2.58		64,867		2.63		64,496		2.54
State and political subdivisions (c)	1,134		3.03		1,217		3.05			1,735		2.89		2,206		2.71		2,263		2.63
Other securities (c)	35,242		1.64		33,729		1.75			30,770		2.04		28,647		2.13		27,614		1.91
Trading securities (c)	6,695		2.41		5,653		2.80			5,764		2.72		5,102		2.91		5,543		2.77
Total securities (c)	129,009		2.13		127,149		2.25			123,584		2.40		124,419		2.45		124,447		2.33
Total interest-earning assets (c)	$	297,987	2.30	%	$	294,154	2.63	%	(b)	$	287,417	2.74	%	$	282,185	2.75	%	$	285,706	2.60	%
Noninterest-earning assets	56,354				56,525					54,967				53,980				52,885
Total assets	$	354,341			$	350,679				$	342,384			$	336,165			$	338,591

Liabilities and equity
Interest-bearing liabilities:
Interest-bearing deposits:
Domestic offices	$	87,162	0.98	%	$	82,663	1.28	%		$	74,180	1.36	%	$	70,562	1.29	%	$	72,929	1.19	%
Foreign offices	95,262		0.49		94,738		0.71			93,365		0.78		89,317		0.76		88,734		0.59
Total interest-bearing deposits	182,424		0.73		177,401		0.98			167,545		1.04		159,879		0.99		161,663		0.86
Federal funds purchased and securities sold under repurchase agreements (a)	12,668		9.11		13,432		13.08			11,809		12.64		11,922		11.26		10,980		10.95
Trading liabilities	1,504		2.25		1,371		2.33			1,735		2.47		1,305		2.25		1,330		1.86
Other borrowed funds	709		2.83		1,148		3.24			2,455		3.36		3,305		2.87		2,903		2.44
Commercial paper	1,792		1.66		3,796		2.26			2,957		2.43		1,377		2.44		353		2.41
Payables to customers and broker-dealers	15,178		1.07		15,440		1.52			15,666		1.76		16,108		1.76		15,727		1.61
Long-term debt	28,117		3.09		28,386		3.24			27,681		3.45		28,254		3.52		28,201		3.29
Total interest-bearing liabilities	$	242,392	1.48	%	$	240,974	1.99	%		$	229,848	2.03	%	$	222,150	1.96	%	$	221,157	1.75	%
Total noninterest-bearing deposits	49,632				49,027					52,956				54,583				58,972
Other noninterest-bearing liabilities	20,681				19,280					18,362				18,628				16,754
Total The Bank of New York Mellon Corporation shareholders’ equity	41,384				41,139					41,029				40,628				41,428
Noncontrolling interests	252				259					189				176				280
Total liabilities and equity	$	354,341			$	350,679				$	342,384			$	336,165			$	338,591
Net interest margin			1.09	%			0.99	%	(b)			1.12	%			1.20	%			1.24	%
Net interest margin (FTE) – Non-GAAP (d)			1.09	%			1.00	%	(b)			1.12	%			1.20	%			1.24	%
(a) Includes the average impact of offsetting under enforceable netting agreements of approximately $60 billion for 4Q19, $68 billion for 3Q19, $51 billion for 2Q19, $44 billion for 1Q19 and $43 billion for 4Q18. On a Non-GAAP basis, excluding the impact of offsetting, the yield on federal funds sold and securities purchased under resale agreements would have been 1.82% for 4Q19, 2.42% for 3Q19, 2.57% for 2Q19, 2.63% for 1Q19 and 2.41% for 4Q18. On a Non-GAAP basis, excluding the impact of offsetting, the rate on federal funds purchased and securities sold under repurchase agreements would have been 1.59% for 4Q19, 2.17% for 3Q19, 2.39% for 2Q19, 2.40% for 1Q19 and 2.24% for 4Q18. We believe providing the rates excluding the impact of netting is useful to investors as it is more reflective of the actual rates earned and paid.
(b) Includes the impact of the lease-related impairment of $70 million in 3Q19. On a Non-GAAP basis, excluding the lease-related impairment, the yield on non-margin loans in domestic offices would have been 3.70%, the yield on total non-margin loans would have been 3.50%, the yield on total interest-earning assets would have been 2.72% and the net interest margin and the net interest margin (FTE) – Non-GAAP would have been 1.09% in 3Q19.
(c) Average rates were calculated on an FTE basis, at tax rates of approximately 21%.
(d) See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.



THE BANK OF NEW YORK MELLON CORPORATION
CAPITAL AND LIQUIDITY
	2019												2018
(dollars in millions)	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
Consolidated regulatory capital ratios (a)
Standardized Approach:
CET1 capital	$	18,529		$	18,196		$	18,534		$	18,156		$	17,567
Tier 1 capital	21,985			21,677			22,015			21,639			21,044
Total capital	23,438			23,145			23,500			23,136			22,536
Risk-weighted assets	147,283			148,399			149,226			151,101			149,618

CET1 ratio	12.6		%	12.3		%	12.4		%	12.0		%	11.7		%
Tier 1 capital ratio	14.9			14.6			14.8			14.3			14.1
Total capital ratio	15.9			15.6			15.7			15.3			15.1

Advanced Approaches:
CET1 capital	$	18,529		$	18,196		$	18,534		$	18,156		$	17,567
Tier 1 capital	21,985			21,677			22,015			21,639			21,044
Total capital	23,222			22,921			23,300			22,941			22,349
Risk-weighted assets	161,105			164,172			166,570			163,618			164,671

CET1 ratio	11.5		%	11.1		%	11.1		%	11.1		%	10.7		%
Tier 1 capital ratio	13.6			13.2			13.2			13.2			12.8
Total capital ratio	14.4			14.0			14.0			14.0			13.6

Tier 1 leverage ratio	6.6		%	6.5		%	6.8		%	6.8		%	6.6		%

SLR:
Leverage exposure	$	362,479		$	359,023		$	350,747		$	344,829		$	347,943
SLR	6.1		%	6.0		%	6.3		%	6.3		%	6.0		%

Average liquidity coverage ratio	120		%	117		%	117		%	118		%	118		%
(a) Regulatory capital ratios for Dec. 31, 2019 are preliminary. For our CET1, Tier 1 capital and Total capital ratios, our effective capital ratios under the U.S. capital rules are the lower of the ratios as calculated under the Standardized and Advanced Approaches, which for the periods noted above was the Advanced Approaches.



THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SERVICES BUSINESS

																4Q19 vs.										FY19 vs.
(dollars in millions)	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		FY19			FY18			FY18
Revenue:
Investment services fees:
Asset servicing fees (ex. securities lending revenue) (a)	$	1,084		$	1,093		$	1,080		$	1,059		$	1,063		(1	)%	2	%	$	4,316		$	4,322		—	%
Securities lending revenue	40			39			40			44			43			3		(7	)	163			198			(18	)
Clearing services fees (b)	421			419			411			398			398			—		6		1,649			1,615			2
Issuer services fees	264			324			291			251			286			(19	)	(8	)	1,130			1,099			3
Treasury services fees	147			139			140			132			139			6		6		558			553			1
Total investment services fees (b)	1,956			2,014			1,962			1,884			1,929			(3	)	1		7,816			7,787			—
Foreign exchange and other trading revenue	151			160			153			157			163			(6	)	(7	)	621			665			(7	)
Other (b)(c)	115			117			112			113			121			(2	)	(5	)	457			474			(4	)
Total fee and other revenue	2,222			2,291			2,227			2,154			2,213			(3	)	—		8,894			8,926			—
Net interest revenue	769			753			775			796			827			2		(7	)	3,093			3,372			(8	)
Total revenue	2,991			3,044			3,002			2,950			3,040			(2	)	(2	)	11,987			12,298			(3	)
Provision for credit losses	(5		)	(15		)	(4		)	8			6			N/M		N/M		(16		)	1			N/M
Noninterest expense (ex. amortization of intangible assets)	2,142			1,944			1,934			1,949			2,090			10		2		7,969			7,929			1
Amortization of intangible assets	19			21			20			20			22			(10	)	(14	)	80			129			(38	)
Total noninterest expense	2,161			1,965			1,954			1,969			2,112			10		2		8,049			8,058			—
Income before taxes	$	835		$	1,094		$	1,052		$	973		$	922		(24	)%	(9	)%	$	3,954		$	4,239		(7	)%

Pre-tax operating margin	28		%	36		%	35		%	33		%	30		%					33		%	34		%

Total revenue by line of business:
Asset Servicing	$	1,397		$	1,405		$	1,391		$	1,407		$	1,435		(1	)%	(3	)%	$	5,600		$	5,932		(6	)%
Pershing	570			568			564			554			558			—		2		2,256			2,255			—
Issuer Services	415			466			446			396			441			(11	)	(6	)	1,723			1,743			(1	)
Treasury Services	329			312			317			317			328			5		—		1,275			1,302			(2	)
Clearance and Collateral Management	280			293			284			276			278			(4	)	1		1,133			1,066			6
Total revenue by line of business	$	2,991		$	3,044		$	3,002		$	2,950		$	3,040		(2	)%	(2	)%	$	11,987		$	12,298		(3	)%
(a) Asset servicing fees include the fees from the Clearance and Collateral Management business.
(b) In 1Q19, we reclassified certain platform-related fees to clearing services fees from investment management and performance fees. Prior periods have been reclassified.
(c) Other revenue includes investment management fees, financing-related fees, distribution and servicing revenue, securities gains and losses and investment and other income.
N/M - Not meaningful.



THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SERVICES BUSINESS

											4Q19 vs.							FY19 vs.
(dollars in millions, unless otherwise noted)	4Q19		3Q19		2Q19		1Q19		4Q18		3Q19	4Q18		FY19		FY18		FY18
Average loans	$	34,238	$	32,758	$	32,287	$	33,171	$	35,540	5	(4	)%	$	33,115	$	36,931	(10	)%
Average assets	$	277,956	$	269,784	$	264,639	$	255,891	$	262,584	3	6	%	$	267,135	$	262,747	2	%
Average deposits	$	215,388	$	208,044	$	201,146	$	195,082	$	203,416	4	6	%	$	204,979	$	203,279	1	%

AUC/A at period end (in trillions) (a)(b)	$	37.1	$	35.8	$	35.5	$	34.5	$	33.1	4	12	%
Market value of securities on loan at period end (in billions) (c)	$	378	$	362	$	369	$	377	$	373	4	1	%

Pershing
Average active clearing accounts (U.S. platform) (in thousands)	6,340		6,283		6,254		6,169		6,125		1	4	%
Average long-term mutual fund assets (U.S. platform)	$	573,475	$	547,522	$	532,384	$	507,606	$	489,491	5	17	%
Average investor margin loans (U.S. platform)	$	9,420	$	9,222	$	9,440	$	10,093	$	10,921	2	(14	)%

Clearance and Collateral Management
Average tri-party collateral management balances (in billions)	$	3,562	$	3,550	$	3,400	$	3,266	$	3,181	—	12	%
(a) Dec. 31, 2019 information is preliminary.
(b) Includes the AUC/A of CIBC Mellon of $1.5 trillion at Dec. 31, 2019, $1.4 trillion at Sept. 30, 2019 and June 30, 2019, $1.3 trillion at March 31, 2019 and $1.2 trillion at Dec. 31, 2018.
(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 $60 billion at Dec. 31, 2019, $66 billion at Sept. 30, 2019, $64 billion at June 30, 2019, $62 billion at March 31, 2019 and $58 billion at Dec.31, 2018.



THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT MANAGEMENT BUSINESS

																4Q19 vs.										FY19 vs.
(dollars in millions)	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		FY19			FY18			FY18
Revenue:
Investment management fees (a)	$	831		$	826		$	827		$	806		$	826		1	%	1	%	$	3,290		$	3,488		(6	)%
Performance fees	48			2			2			31			54			N/M		(11	)	83			144			(42	)
Investment management and performance fees (b)	879			828			829			837			880			6		—		3,373			3,632			(7	)
Distribution and servicing	44			45			44			45			45			(2	)	(2	)	178			190			(6	)
Other (a)	(4		)	(40		)	(23		)	(18		)	(35		)	N/M		N/M		(85		)	(41		)	N/M
Total fee and other revenue (a)	919			833			850			864			890			10		3		3,466			3,781			(8	)
Net interest revenue	56			57			67			75			73			(2	)	(23	)	255			303			(16	)
Total revenue	975			890			917			939			963			10		1		3,721			4,084			(9	)
Provision for credit losses	—			—			(2		)	1			1			N/M		N/M		(1		)	3			N/M
Noninterest expense (ex. amortization of intangible assets)	721			580			645			660			702			24		3		2,606			2,767			(6	)
Amortization of intangible assets	9			10			9			9			13			(10	)	(31	)	37			51			(27	)
Total noninterest expense	730			590			654			669			715			24		2		2,643			2,818			(6	)
Income before taxes	$	245		$	300		$	265		$	269		$	247		(18	)%	(1	)%	$	1,079		$	1,263		(15	)%

Pre-tax operating margin	25		%	34		%	29		%	29		%	26		%					29		%	31		%
Adjusted pre-tax operating margin – Non-GAAP (c)	28		%	38		%	32		%	32		%	29		%					32		%	34		%

Total revenue by line of business:
Asset Management	$	688		$	605		$	618		$	637		$	660		14	%	4	%	$	2,548		$	2,836		(10	)%
Wealth Management	287			285			299			302			303			1		(5	)	1,173			1,248			(6	)
Total revenue by line of business	$	975		$	890		$	917		$	939		$	963		10	%	1	%	$	3,721		$	4,084		(9	)%

Average loans	$	16,505		$	16,260		$	16,322		$	16,403		$	16,485		2	%	—	%	$	16,372		$	16,774		(2	)%
Average assets	$	30,615		$	30,326		$	30,709		$	31,857		$	31,043		1	%	(1	)%	$	30,697		$	31,446		(2	)%
Average deposits	$	15,195		$	14,083		$	14,615		$	15,815		$	14,893		8	%	2	%	$	14,923		$	14,291		4	%
(a) Total fee and other revenue includes the impact of the consolidated investment management funds, net of noncontrolling interests. Additionally, other revenue includes asset servicing fees, treasury services fees, foreign exchange and other trading revenue and investment and other income.
(b) On a constant currency basis (Non-GAAP), investment management and performance fees were essentially unchanged compared with 4Q18. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.
(c) Net of distribution and servicing expense. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.
N/M - Not meaningful.



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

																4Q19 vs.										FY19 vs.
(dollars in billions)	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19		4Q18		FY19			FY18			FY18
AUM by product type (a)(b)
Equity	$	154		$	147		$	152		$	149		$	135		5	%	14	%
Fixed income	224			211			209			208			200			6		12
Index	339			321			322			333			301			6		13
Liability-driven investments	728			742			709			709			659			(2	)	10
Multi-asset and alternative investments	192			182			184			178			167			5		15
Cash	273			278			267			264			260			(2	)	5
Total AUM by product type	$	1,910		$	1,881		$	1,843		$	1,841		$	1,722		2	%	11	%

Changes in AUM (a)(b)
Beginning balance of AUM	$	1,881		$	1,843		$	1,841		$	1,722		$	1,828						$	1,722		$	1,893
Net inflows (outflows):
Long-term strategies:
Equity	(6		)	(4		)	(2		)	(4		)	(8		)					(16		)	(13		)
Fixed income	5			2			(4		)	3			(1		)					6			4
Liability-driven investments	(3		)	(4		)	1			5			14							(1		)	45
Multi-asset and alternative investments	3			(1		)	1			(4		)	(2		)					(1		)	(6		)
Total long-term active strategies (outflows) inflows	(1		)	(7		)	(4		)	—			3							(12		)	30
Index	(5		)	(3		)	(22		)	(2		)	(11		)					(32		)	(34		)
Total long-term strategies (outflows)	(6		)	(10		)	(26		)	(2		)	(8		)					(44		)	(4		)
Short-term strategies:
Cash	(7		)	11			2			2			(10		)					8			(35		)
Total net (outflows) inflows	(13		)	1			(24		)	—			(18		)					(36		)	(39		)
Net market impact	(20		)	66			42			103			(69		)					191			(48		)
Net currency impact	62			(29		)	(16		)	16			(19		)					33			(53		)
Divestiture/Other	—			—			—			—			—							—			(31		)
Ending balance of AUM	$	1,910		$	1,881		$	1,843		$	1,841		$	1,722		2	%	11	%	$	1,910		$	1,722		11	%

Wealth Management client assets (a)(c)	$	266		$	259		$	257		$	253		$	239		3	%	11	%
(a) Dec. 31, 2019 information is preliminary.
(b) Excludes securities lending cash management assets and assets managed in the Investment Services business.
(c) Includes AUM and AUC/A in the Wealth Management business.



THE BANK OF NEW YORK MELLON CORPORATION
OTHER SEGMENT

(in millions)	4Q19			3Q19			2Q19			1Q19			4Q18			FY19			FY18
Fee revenue	$	836		$	5		$	34		$	29		$	29		$	904		$	133
Net securities (losses) gains	(23		)	(1		)	7			1			—			(16		)	(48		)
Total fee and other revenue	813			4			41			30			29			888			85
Net interest (expense)	(10		)	(80		)	(40		)	(30		)	(15		)	(160		)	(64		)
Total revenue (loss)	803			(76		)	1			—			14			728			21
Provision for credit losses	(3		)	(1		)	(2		)	(2		)	(7		)	(8		)	(15		)
Noninterest expense	73			35			39			61			160			208			334
Income (loss) before taxes	$	733		$	(110	)	$	(36	)	$	(59	)	$	(139	)	$	528		$	(298	)

Average loans and leases	$	1,974		$	1,817		$	1,764		$	1,784		$	1,809		$	1,836		$	2,105
Average assets	$	45,770		$	50,569		$	47,036		$	48,417		$	44,964		$	48,123		$	49,581



THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SECURITIES PORTFOLIO

(dollars in millions)	Sept. 30, 2019			4Q19 change in unrealized gain (loss)			Dec. 31, 2019					Fair value as a % of amortized cost (a)		Unrealized gain (loss)				Ratings (b)
	Sept. 30, 2019						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	$	53,254		$	24		$	54,379	$	54,646		100	%	$	267			100	%	—	%	—	%	—	%	—	%
U.S. Treasury	18,541			24			18,797		18,865			100		68				100		—		—		—		—
Sovereign debt/sovereign guaranteed	13,932			(65		)	13,304		13,404			101		100				74		5		20		1		—
Agency commercial MBS	10,598			(41		)	10,557		10,613			101		56				100		—		—		—		—
Foreign covered bonds	3,670			(11		)	4,268		4,276			100		8				100		—		—		—		—
CLOs	3,868			(1		)	4,078		4,063			100		(15		)		99		—		—		1		—
Supranational	4,113			(26		)	3,724		3,734			100		10				100		—		—		—		—
U.S. government agencies	3,344			(16		)	2,913		2,933			101		20				100		—		—		—		—
Foreign government agencies	2,183			(5		)	2,638		2,641			100		3				95		5		—		—		—
Non-agency commercial MBS	2,250			(12		)	2,134		2,165			101		31				98		2		—		—		—
Other asset-backed securities	2,484			(5		)	2,141		2,143			100		2				100		—		—		—		—
Non-agency RMBS (c)	1,301			(14		)	1,118		1,316			118		198				26		11		3		37		23
State and political subdivisions	1,200			2			1,034		1,061			103		27				77		22		—		—		1
Corporate bonds	879			—			832		853			103		21				17		68		15		—		—
Other	74			(3		)	1		1			100		—				—		—		—		—		100
Total investment securities	$	121,691	(d)	$	(149	)	$	121,918	$	122,714	(d)	101	%	$	796		(d)(e)	95	%	2	%	2	%	1	%	—	%
(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 $689 million at Sept. 30, 2019 and $640 million at Dec. 31, 2019.
(d) Includes net unrealized losses on derivatives hedging securities available-for-sale of $963 million at Sept. 30, 2019 and $641 million at Dec. 31, 2019.
(e) Includes unrealized gains of $474 million at Dec. 31, 2019 related to available-for-sale securities, net of hedges.



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

	2019														2018
(dollars in millions)	Dec. 31			Sept. 30			June 30				March 31				Dec. 31
Allowance for credit losses - beginning of period:
Allowance for loan losses	$	127		$	146		$	146			$	146			$	140
Allowance for lending-related commitments	97			95			102				106				111
Allowance for credit losses - beginning of period	$	224		$	241		$	248			$	252			$	251

Net (charge-offs) recoveries:
Charge-offs	(1		)	(1		)	(1		)		(11		)		—
Recoveries	1			—			2				—				1
Total net (charge-offs) recoveries	—			(1		)	1				(11		)		1
Provision for credit losses	(8		)	(16		)	(8		)		7				—
Allowance for credit losses - end of period	$	216		$	224		$	241			$	248			$	252

Allowance for credit losses - end of period:
Allowance for loan losses	$	122		$	127		$	146			$	146			$	146
Allowance for lending-related commitments	94			97			95				102				106
Allowance for credit losses - end of period	$	216		$	224		$	241			$	248			$	252

Allowance for loan losses as a percentage of total loans	0.22		%	0.23		%	0.28		%		0.27		%		0.26		%

Nonperforming assets	$	89		$	88		$	186		(a)	$	174		(a)	$	79
(a) Includes nonperforming loans to a California utility company that filed for bankruptcy that were sold in 3Q19.



THE BANK OF NEW YORK MELLON CORPORATION
SUPPLEMENTAL INFORMATION – EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES

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

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

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

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

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

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

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


Return on common equity and tangible common equity reconciliation
(dollars in millions)	4Q19			3Q19			2Q19			1Q19			4Q18			FY19			FY18
Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP	$	1,391		$	1,002		$	969		$	910		$	832		$	4,272		$	4,097
Add: Amortization of intangible assets	28			30			30			29			35			117			180
Less: Tax impact of amortization of intangible assets	7			7			7			7			8			28			42
Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets – Non-GAAP	$	1,412		$	1,025		$	992		$	932		$	859		$	4,361		$	4,235

Average common shareholders’ equity	$	37,842		$	37,597		$	37,487		$	37,086		$	37,886		$	37,505		$	37,818
Less: Average goodwill	17,332			17,267			17,343			17,376			17,358			17,329			17,458
Average intangible assets	3,119			3,141			3,178			3,209			3,239			3,162			3,314
Add: Deferred tax liability – tax deductible goodwill	1,098			1,103			1,094			1,083			1,072			1,098			1,072
Deferred tax liability – intangible assets	670			679			687			690			692			670			692
Average tangible common shareholders’ equity – Non-GAAP	$	19,159		$	18,971		$	18,747		$	18,274		$	19,053		$	18,782		$	18,810

Return on common equity – GAAP	14.6		%	10.6		%	10.4		%	10.0		%	8.7		%	11.4		%	10.8		%
Return on tangible common equity – Non-GAAP	29.3		%	21.4		%	21.2		%	20.7		%	17.9		%	23.2		%	22.5		%



THE BANK OF NEW YORK MELLON CORPORATION
SUPPLEMENTAL INFORMATION – EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
Book value and tangible book value per common share reconciliation	2019												2018
(dollars in millions, except common shares)	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
BNY Mellon shareholders’ equity at period end – GAAP	$	41,483		$	41,120		$	41,533		$	41,225		$	40,638
Less: Preferred stock	3,542			3,542			3,542			3,542			3,542
BNY Mellon common shareholders’ equity at period end – GAAP	37,941			37,578			37,991			37,683			37,096
Less: Goodwill	17,386			17,248			17,337			17,367			17,350
Intangible assets	3,107			3,124			3,160			3,193			3,220
Add: Deferred tax liability – tax deductible goodwill	1,098			1,103			1,094			1,083			1,072
Deferred tax liability – intangible assets	670			679			687			690			692
BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP	$	19,216		$	18,988		$	19,275		$	18,896		$	18,290

Period-end common shares outstanding (in thousands)	900,683			922,199			942,662			957,517			960,426

Book value per common share – GAAP	$	42.12		$	40.75		$	40.30		$	39.36		$	38.63
Tangible book value per common share – Non-GAAP	$	21.33		$	20.59		$	20.45		$	19.74		$	19.04



Net interest margin reconciliation
(dollars in millions)	4Q19			3Q19			2Q19			1Q19			4Q18
Net interest revenue – GAAP	$	815		$	730		$	802		$	841		$	885
Add: Tax equivalent adjustment	2			3			4			4			4
Net interest revenue (FTE) – Non-GAAP	$	817		$	733		$	806		$	845		$	889

Average interest-earning assets	$	297,987		$	294,154		$	287,417		$	282,185		$	285,706

Net interest margin – GAAP (a)	1.09		%	0.99		%	1.12		%	1.20		%	1.24		%
Net interest margin (FTE) – Non-GAAP (a)	1.09		%	1.00		%	1.12		%	1.20		%	1.24		%
(a) Net interest margin is annualized.



THE BANK OF NEW YORK MELLON CORPORATION
SUPPLEMENTAL INFORMATION – EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
Pre-tax operating margin reconciliation - Investment Management business
(dollars in millions)	4Q19			3Q19			2Q19			1Q19			4Q18			FY19			FY18
Income before income taxes – GAAP	$	245		$	300		$	265		$	269		$	247		$	1,079		$	1,263

Total revenue – GAAP	$	975		$	890		$	917		$	939		$	963		$	3,721		$	4,084
Less: Distribution and servicing expense	93			98			94			91			95			376			407
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP	$	882		$	792		$	823		$	848		$	868		$	3,345		$	3,677

Pre-tax operating margin – GAAP (a)	25		%	34		%	29		%	29		%	26		%	29		%	31		%
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a)	28		%	38		%	32		%	32		%	29		%	32		%	34		%
(a) Income before income taxes divided by total revenue.



Constant currency reconciliations							4Q19 vs.
(dollars in millions)	4Q19			4Q18			4Q18
Consolidated:
Investment management and performance fees – GAAP	$	883		$	884		—		%
Impact of changes in foreign currency exchange rates	—			—
Adjusted investment management and performance fees – Non-GAAP	$	883		$	884		—		%


Investment Management business:
Investment management and performance fees – GAAP	$	879		$	880		—		%
Impact of changes in foreign currency exchange rates	—			—
Adjusted investment management and performance fees – Non-GAAP	$	879		$	880		—		%

Fourth Quarter 2019 Financial Highlights January 16, 2020

4Q19 Financial Results Profits Returns Balance Sheet › Net Income: $1,391 million › ROE: 14.6% › CET1: 11.5% (a) › Includes $460 million of notable items › ROTCE: 29.3% › SLR: 6.1% › Diluted EPS: $1.52 › Returned $1.3 billion to shareholders › Includes $0.50 of notable items Pre-tax Income Total Revenue ($ million) ($ million) 79% 42% 3,040 › Investment Services revenue impacted 75 by lower net interest and foreign 1,822 70 65 3,044 (2)% exchange revenue; fees up 60 1,287 55 Services 50 Investment › Investment Management revenue 1,020 45 2,991 40 primarily reflects higher market values 35 38% 30 33% 25 20 › Good expense control 25% 15 10 963 5 › Strong capital returns 4Q18 3Q19 4Q19 890 1% Pre-tax operating margin Investment (a) Management 975 Ex notable items 4Q18 4Q19 PTI ($m) 1,289 1,218 4Q18 3Q19 4Q19 Op Margin 32% 31% (a) Represents a non-GAAP measure. See page 16 in the Appendix for corresponding reconciliation of notable items and page 18 for corresponding reconciliation of ROTCE. 22 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

2019 Financial Highlights – non-GAAP (a) Adjusted revenue of $15.7bn despite interest rate headwinds Operating EPS Operating margin (a) (a) $ 4.02 32 % Net interest revenue down reflecting deposit mix shift and lower interest rates Expenses down AUC/A (a) Investment servicing fees stable, ~50% of total revenue (1) % $ 37.1 trillion; +12 % Expense discipline with higher technology investment Payout ratio Capital generated over 100 % over $5bn Strong capital generation while investing for the future (a) Represents a non-GAAP Measure. See page 17 in the Appendix for corresponding reconciliation. 33 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

4Q19 Financial Highlights ($ millions, except per share data) 4Q19 3Q19 4Q18 Total revenue $4,778 24% 19% Fee revenue 3,971 27 26 Net interest revenue 815 12 (8) Provision for credit losses (8) N/M N/M Noninterest expense 2,964 14 (1) Income before income taxes 1,822 42 79 Net income applicable to common shareholders $1,391 39% 67% Earnings per common share $1.52 42% 81% Operating leverage (a) 931 bps 2,001 bps Pre-tax operating margin 38% 485 bps 1,272 bps Return on common equity 14.6% 402 bps 588 bps Return on tangible common equity (b) 29.3% 785 bps 1,141 bps (c) Notable items › 4Q19 includes gain from the sale of an equity investment, partially offset by Increase / (decrease) Revenue Expense EPS severance, net securities losses and litigation 4Q19 790 186 $0.50 › 3Q19 includes a lease-related impairment negatively impacting net interest revenue and a net reduction of reserves for tax-related exposure of certain investment 3Q19 (70) (74) $0.01 management funds benefiting expenses 4Q18 - 269 ($0.16) › 4Q18 includes severance, real estate and litigation, partially offset by adjustments to estimates for U.S. tax legislation and other changes Note: See page 15 in the Appendix for corresponding footnotes. N/M - not meaningful; bps - basis points 44 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

2019 Financial Highlights ($ millions, except per share data) 2019 2018 Total revenue $16,462 - % Fee revenue 13,236 3 Net interest revenue 3,188 (12) Provision for credit losses (25) N/M Noninterest expense 10,900 (3) Income before income taxes 5,587 8 Net income applicable to common shareholders $4,272 4% Earnings per common share $4.51 12% Operating leverage (a) 320 bps Pre-tax operating margin 34% 227 bps Return on common equity 11.4% 56 bps Return on tangible common equity (b) 23.2% 71 bps (c) Notable items › 2019 includes gain from the sale of an equity investment and a net reduction of Increase / (decrease) Revenue Expense EPS reserves for tax-related exposure of certain investment management funds, partially 2019 720 113 $0.49 offset by severance, a lease-related impairment, securities losses from a portfolio rebalance and litigation expenses 2018 (13) 343 ($0.17) › 2018 includes severance, real estate consolidation, litigation expenses, and adjustments to provisional estimates for U.S. tax legislation and other changes Note: See page 15 in the Appendix for corresponding footnotes. N/M - not meaningful; bps - basis points 55 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

Capital and Liquidity 4Q19 3Q19 4Q18 Consolidated regulatory capital ratios: (a) Common Equity Tier 1 (“CET1”) ratio 11.5% 11.1% 10.7% Tier 1 capital ratio 13.6 13.2 12.8 Total capital ratio 14.4 14.0 13.6 Tier 1 leverage ratio 6.6 6.5 6.6 Supplementary leverage ratio (“SLR”) 6.1 6.0 6.0 Average liquidity coverage ratio (“LCR”) 120% 117% 118% Book value per common share $42.12 $40.75 $38.63 Tangible book value per common share – non-GAAP (b) $21.33 $20.59 $19.04 Cash dividends per common share $0.31 $0.31 $0.28 Common shares outstanding (thousands) 900,683 922,199 960,426 Note: See page 15 in the Appendix for corresponding footnotes. 66 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

Balance Sheet ($ billions unless otherwise noted) Average Interest-Earning Assets Average Deposits +4% +1% +5% 294 298 +2% › Higher net interest revenue sequentially, excluding 3Q19 286 (a) impairment 232 51 53 226 › interest and noninterest-bearing deposits up 54 (a) 221 2.72% › loans and securities up (a) › NIM stable, excluding 3Q19 impairment, as positive 2.60% 2.63% 2.30% balance sheet mix offset the impact of lower interest rates 127 129 162 177 182 124 0.98% 4Q19 3Q19 4Q18 0.86% 0.73% Net interest revenue ($m) 815 12% (8)% (a) excluding impairment 2% 107 116 116 59 Net interest margin 1.09% 10 bps (15) bps 49 50 (a) excluding impairment - bps (a) Represents a non-GAAP measure; 3Q19 NIR was $730 million ($800 million, excluding a $70 million 4Q18 3Q19 4Q19 4Q18 3Q19 4Q19 lease-related impairment), which impacted NIM and interest-earning asset yields by 9-10 bps. Total interest-earning assets average rate Interest-bearing deposits rate Loans Interest-bearing deposits Securities Noninterest-bearing deposits Cash/Reverse Repo Note: May not foot due to rounding. bps – basis points 77 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

Yield Curve Net Interest Revenue 10/17/19 1/10/20 2.2% 2.0% 1.8% 1.6% 1.4% 1m 3m 12m 2Y 5Y 10Y Drivers of Sequential NIR Change ($ millions) USD LIBOR US Treasury 815 70 800 730 3Q19 + Lease-related 3Q19 excluding + Average + Average IB + Lower − Lower interest- 4Q19 impairment impairment(a) NIB deposit deposit funding earning asset balances up balances up costs yields ~$0.6bn by $5bn + Higher earning assets (a) Represents a non-GAAP measure. See page 7 for additional information. 88 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

Noninterest Expense ($ millions) 4Q19 3Q19 4Q18 › Noninterest expense down 1% year-over-year, or Staff $1,639 11% 2% up 2% excluding notable items(a) Professional, legal and other purchased 367 16 (4) services – increase primarily reflects continued investments in technology Software and equipment 326 6 9 Net occupancy 151 9 (23) › Technology expenses are included in staff, Sub-custodian and clearing 119 7 3 professional, legal and other purchased services and software and equipment Distribution and servicing 92 (5) (3) Business development 65 38 2 › Both year-over-year and sequential growth rates Bank assessment charges 32 3 45 are impacted by notable items Amortization of intangible assets 28 (7) (20) Other 145 N/M (17) Total noninterest expense $2,964 14% (1)% (a) Represents a non-GAAP measure. See page 16 in the Appendix for corresponding reconciliation. N/M - not meaningful 99 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

Investment Services Financial Highlights ($ millions unless otherwise noted) 4Q19 3Q19 4Q18 › Asset Servicing down 3% year-over-year on lower net Total revenue by line of business: interest revenue and foreign exchange revenue, partially Asset Servicing $1,397 (1)% (3)% Pershing 570 - 2 offset by the impact of higher equity markets Issuer Services 415 (11) (6) Treasury Services 329 5 - › Pershing up 2% on growth in client assets and accounts, Clearance and Collateral Management 280 (4) 1 partially offset by lower net interest revenue Total revenue 2,991 (2) (2) Provision for credit losses (5) N/M N/M › Issuer Services down 6% on lower Depositary Receipts Noninterest expense 2,161 10 2 revenue, partially offset by higher client activity in Income before taxes $835 (24)% (9)% Corporate Trust Pre-tax operating margin 28% (805) bps (242) bps › Treasury Services largely flat on higher payment fees offset by lower net interest revenue Key Metrics › Clearance and Collateral Management up 1% on growth Foreign exchange and other trading revenue $151 (6)% (7)% Securities lending revenue 40 3 (7) in collateral management and clearance volumes, which were mostly offset by lower net interest revenue Average loans 34,238 5 (4) Average deposits 215,388 4 6 › AUC/A of $37.1 trillion up 12% primarily reflecting higher AUC/A at period end (tr) (a) 37.1 4 12 market values and client inflows (b) Market value of securities on loan at period end (bn) $378 4% 1% Pershing Average active clearing accounts (U.S. platform) (thousands) 6,340 1 4 Clearance and Collateral Management Average tri-party collateral mgmt. balances (tr) $3.6 -% 12% Note: See page 15 in the Appendix for corresponding footnotes. N/M - not meaningful; bps - basis points 1010 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

Investment Services - Revenue Drivers ($ millions) (3)% +2% (6)% - % +1% 1,435 570 441 329 280 1,397 558 415 328 278 4Q18 4Q19 4Q18 4Q19 4Q18 4Q19 4Q18 4Q19 4Q18 4Q19 Asset Servicing Pershing Issuer Services Treasury Services Clearance and Collateral + AUC/A + Client assets and + Corporate Trust new + Payment volumes + New business from new + Equity markets accounts from new business and + Interest-bearing and existing clients and existing clients volumes - Net interest revenue deposits + Average tri-party balances + Equity markets - Depositary Receipts - FX volatility - Noninterest-bearing + U.S. government securities - Margin loans and corporate actions deposits clearance volumes and volumes interest rates - Net interest revenue - Noninterest-bearing - Net interest revenue deposits - Loan volumes 1111 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

Investment Management Financial Highlights ($ millions unless otherwise noted) 4Q19 3Q19 4Q18 › Asset Management revenue up 4% year-over-year Total revenue by line of business: Asset Management $688 14% 4% on higher market values and the impact of hedging Wealth Management 287 1 (5) activities, partially offset by cumulative AUM Total revenue 975 10 1 outflows since 4Q18 Provision for credit losses - N/M N/M Noninterest expense 730 24 2 › Wealth Management revenue down 5% primarily Income before taxes $245 (18)% (1)% due to lower net interest revenue, partially offset by Pre-tax operating margin 25% (844) bps (48) bps higher market values Adjusted pre-tax operating margin – non-GAAP (a) 28% (997) bps (65) bps › Noninterest expense up 2% primarily reflecting Key Metrics higher staff expense Average loans $16,505 2% -% Average deposits 15,195 8 2 › AUM of $1.9 trillion up 11% primarily reflecting Wealth Management client assets (bn) (b) $266 3% 11% higher market values and the favorable impact of a weaker U.S. dollar, partially offset by net outflows Changes in AUM (bn) (c) 4Q19 3Q19 4Q18 Beginning balance $1,881 $1,843 $1,828 Equity (6) (4) (8) Fixed income 5 2 (1) Liability-driven investments (3) (4) 14 Multi-asset and alternatives 3 (1) (2) Index (5) (3) (11) Cash (7) 11 (10) Total net (outflows) inflows (13) 1 (18) Net market impact (20) 66 (69) Net currency impact 62 (29) (19) Ending balance $1,910 $1,881 $1,722 Note: See page 15 in the Appendix for corresponding footnotes. N/M - not meaningful; bps - basis points 1212 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

Other Segment ($($ millions) millions) 4Q19 3Q19 4Q18 › Total revenue increased primarily reflecting the gain $836 $5 $29 Fee revenue on sale of an equity investment Net securities (losses) (23) (1) - Total fee and other revenue 813 4 29 › Net interest expense decreased sequentially Net interest (expense) (10) (80) (15) primarily reflecting the lease-related impairment of Total revenue (loss) 803 (76) 14 $70 million recorded in 3Q19 Provision for credit losses (3) (1) (7) › Noninterest expense decreased year-over-year Noninterest expense 73 35 160 primarily reflecting expenses associated with Income (loss) before taxes $733 $(110) $(139) relocating our corporate headquarters recorded in 4Q18 and lower severance expense 1313 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

Appendix

Footnotes 4Q19 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) Quarterly returns are annualized. See page 18 for corresponding reconciliation of this non-GAAP measure. (c) Represents a non-GAAP measure. See page 16 in the Appendix for corresponding reconciliation. 2019 Financial Highlights - Page 5 (a) Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense. (b) Represents a non-GAAP measure. See page 18 in the Appendix for corresponding reconciliation. (c) Represents a non-GAAP measure. See page 17 in the Appendix for corresponding reconciliation. Capital and Liquidity, Page 6 (a) Regulatory capital ratios for Dec. 31, 2019 are preliminary. For our CET1, Tier 1 capital and Total capital ratios, our effective capital ratios under the U.S. capital rules are the lower of the ratios as calculated under the Standardized and Advanced Approaches, which for the periods included was the Advanced Approaches. (b) Tangible book value per common share – non-GAAP – excludes goodwill and intangible assets, net of deferred tax liabilities. See page 18 for corresponding reconciliation of this non-GAAP measure. Investment Services, Page 10 (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 $1.5 trillion at Dec. 31, 2019, $1.4 trillion at Sept. 30, 2019 and $1.2 trillion at Dec. 31, 2018. (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 $60 billion at Dec. 31, 2019, $66 billion at Sept. 30, 2019 and $58 billion at Dec. 31, 2018. Investment Management, Page 12 (a) Net of distribution and servicing expense. See page 19 for corresponding reconciliation of this non-GAAP measure. (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. 1515 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

Fourth Quarter Results – Impact of Notable Items 4Q19 4Q18 4Q19 vs 4Q18 Results - Notable Results – Results – Notable Results – GAAP non- ($ in millions, except per share data unless otherwise noted) GAAP items(a) non-GAAP GAAP items(b) non-GAAP GAAP Fee revenue $3,971 $815 $3,156 $3,146 $— $3,146 26% —% Net securities (losses) (25) (25) — — — — N/M N/M Total fee and other revenue 3,946 790 3,156 3,146 — 3,146 25 — Income (loss) from consolidated investment management funds 17 — 17 (24) — (24) N/M N/M Net interest revenue 815 — 815 885 — 885 (8) (8) Total revenue 4,778 790 3,988 4,007 — 4,007 19 — Provision for credit losses (8) — (8) — — — N/M N/M Noninterest expense 2,964 186 2,778 2,987 269 2,718 (1) 2 Income (loss) before income taxes 1,822 604 1,218 1,020 (269) 1,289 79 (6) Provision (benefit) for income taxes 373 144 229 150 (114) 264 149 (13) Net income (loss) $1,449 $460 $989 $870 $(155) $1,025 67% (4)% Net income (loss) applicable to common shareholders $1,391 $460 $931 $832 $(155) $987 67% (6)% Operating leverage(c) 2,001 bps (268) bps Diluted earnings per common share(d) $1.52 $0.50 $1.01 $0.84 $(0.16) $0.99 81% 2% Average common shares and equivalents outstanding – diluted (in thousands) 914,739 988,650 Pre-tax operating margin 38% 31% 25% 32% Notable Items by Business Segment 4Q19 3Q19 4Q18 ($ millions) IS IM Other Total IS IM Other Total IS IM Other Total Fee and other revenue $ — $ — $790 $790 $ — $ — $ — $ — $ — $ — $ — $ — Net interest revenue — — — — — — (70) (70) — — — — Total revenue — — 790 790 — — (70) (70) — — — — Total noninterest expense 119 16 51 186 — (74) — (74) 110 28 131 269 Income (loss) before taxes $(119) $(16) $739 $604 $ — $74 $(70) $4 $(110) $(28) $(131) $269 (a) Includes a gain on sale of an equity investment, severance, net securities losses and litigation expense. (b) Includes adjustments to provisional estimates for U.S. tax legislation and other changes, severance, expenses associated with consolidating real estate and litigation expense. (c) Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense. (d) Does not foot due to rounding IS – Investment Services; IM – Investment Management; N/M - not meaningful; bps - basis points 1616 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

Full Year Results – Impact of Notable Items FY19 FY18 FY19 vs. FY18 Results - Notable Results – Results – Notable Results – GAAP non- ($ in millions, except per share data unless otherwise noted) GAAP items(a) non-GAAP GAAP items(b) non-GAAP GAAP Fee revenue $13,236 $815 $12,421 $12,842 $(13) $12,855 3% (3)% Net securities (losses) gains (18) (25) 7 (48) — (48) N/M N/M Total fee and other revenue (loss) 13,218 790 12,428 12,794 (13) 12,807 3 (3) Income (loss) from consolidated investment management funds 56 — 56 (13) — (13) N/M N/M Net interest revenue (expense) 3,188 (70) 3,258 3,611 — 3,611 (12) (10) Total revenue (loss) 16,462 720 15,742 16,392 (13) 16,405 — (4) Provision for credit losses (25) — (25) (11) — (11) N/M N/M Noninterest expense 10,900 113 10,787 11,211 343 10,868 (3) (1) Income (loss) before income taxes 5,587 607 4,980 5,192 (356) 5,548 8 (10) Provision (benefit) for income taxes 1,120 140 980 938 (188) 1,126 19 (13) Net income (loss) $4,467 $467 $4,000 $4,254 $(168) $4,422 5% (10)% Net income (loss) applicable to common shareholders $4,272 $467 $3,805 $4,097 $(168) $4,265 4% (11)% Operating leverage(c) 320 bps (330) bps Diluted earnings per common share $4.51 $0.49 $4.02 $4.04 $(0.17) $4.21 12% (5)% Average common shares and equivalents outstanding – diluted (in thousands) 943,109 1,007,141 Pre-tax operating margin 34% 32% 32% 34% (a) Includes a gain on sale of an equity investment, severance, net securities losses and litigation expense recorded in 4Q19. Also includes a lease-related impairment and a net reduction of reserves for tax-related exposure of certain investment management funds recorded in 3Q19. (b) Includes adjustments to provisional estimates for U.S. tax legislation and other changes, severance, expenses associated with consolidating real estate and litigation expense, each recorded in 4Q18. Also includes expenses associated with consolidating real estate recorded in 2Q18 and adjustments to provisional estimates for U.S. tax legislation and other changes and litigation expense, both recorded in 3Q18. (c) 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 1717 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

Return on Common Equity and Tangible Common Equity Reconciliation ($ millions) 4Q19 3Q19 4Q18 FY19 FY18 Net income applicable to common shareholders of The Bank of New York Mellon Corporation – $1,391 $1,002 $832 $4,272 $4,097 GAAP Add: Amortization of intangible assets 28 30 35 117 180 Less: Tax impact of amortization of intangible assets 7 7 8 28 42 Adjusted net income applicable to common shareholders of The Bank of New York Mellon $1,412 $1,025 $859 $4,361 $4,235 Corporation, excluding amortization of intangible assets – non-GAAP Average common shareholders’ equity $37,842 $37,597 $37,886 $37,505 $37,818 Less: Average goodwill 17,332 17,267 17,358 17,329 17,458 Average intangible assets 3,119 3,141 3,239 3,162 3,314 Add: Deferred tax liability – tax deductible goodwill 1,098 1,103 1,072 1,098 1,072 Deferred tax liability – intangible assets 670 679 692 670 692 Average tangible common shareholders’ equity – non-GAAP $19,159 $18,971 $19,053 $18,782 $18,810 Return on common equity (annualized) – GAAP 14.6% 10.6% 8.7% 11.4% 10.8% Return on tangible common equity (annualized) – non-GAAP 29.3% 21.4% 17.9% 23.2% 22.5% Book Value and Tangible Book Value Per Common Share Reconciliation ($ millions, except common shares) Dec. 31, 2019 Sept. 30, 2019 Dec. 31, 2018 BNY Mellon shareholders’ equity at period end – GAAP $41,483 $41,120 $40,638 Less: Preferred stock 3,542 3,542 3,542 BNY Mellon common shareholders’ equity at period end – GAAP 37,941 37,578 37,096 Less: Goodwill 17,386 17,248 17,350 Intangible assets 3,107 3,124 3,220 Add: Deferred tax liability – tax deductible goodwill 1,098 1,103 1,072 Deferred tax liability – intangible assets 670 679 692 BNY Mellon tangible common shareholders’ equity at period end – non-GAAP $19,216 $18,988 $18,290 Period-end common shares outstanding (in thousands) 900,683 922,199 960,426 Book value per common share – GAAP $42.12 $40.75 $38.63 Tangible book value per common share – non-GAAP $21.33 $20.59 $19.04 1818 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

Pre-tax Operating Margin Reconciliation - Investment Management Business ($ millions) 4Q19 3Q19 4Q18 Income before income taxes – GAAP $245 $300 $247 Total revenue – GAAP $975 $890 $963 Less: Distribution and servicing expense 93 98 95 Adjusted total revenue, net of distribution and servicing expense – non-GAAP $882 $792 $868 Pre-tax operating margin – GAAP (a) 25% 34% 26% Adjusted pre-tax operating margin, net of distribution and servicing expense – non-GAAP (a) 28% 38% 29% (a) Income before income taxes divided by total revenue. 1919 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

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, performance, organizational quality and efficiency, investments, including in technology and product development, capabilities, resiliency, revenue, net interest revenue, fees, expenses, cost discipline, sustainable growth, company management, deposits, interest rates and yield curves, securities portfolio, taxes, business opportunities, divestments, volatility, preliminary business metrics and regulatory capital ratios; and statements regarding 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, 2018 (the “2018 Annual Report”) and in other filings of the Corporation with the Securities and Exchange Commission (the “SEC”). Preliminary business metrics and regulatory capital ratios are subject to change, possibly materially, as the Corporation completes its Annual Report on Form 10-K for the full year of 2019. All forward-looking statements speak only as of January 16, 2020, 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 2018 Annual Report, and are available at www.bnymellon.com/investorrelations. 2020 FourthFirst QuarterQuarter 2019 2019 – Financial– Financial Highlights Highlights

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