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

October 16, 2020 6:28 AM


News Release

BNY MELLON REPORTS THIRD QUARTER 2020 EARNINGS OF

$876 MILLION OR $0.98 PER COMMON SHARE

Revenue down <1%

EPS down 8%

ROE 9%

ROTCE 17% (a)

CET1 13.0%
Tier 1 leverage 6.5%

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


											3Q20 vs.
	3Q20		2Q20		3Q19		2Q20		3Q19
Net income applicable to common shareholders (in millions)	$	876	$	901	$	1,002	(3)	%	(13)	%
Diluted earnings per common share	$	0.98	$	1.01	$	1.07	(3)	%	(8)	%


Third Quarter Results

Total revenue of $3.8 billion, decreased less than 1%

•Fee revenue decreased 1%

•Impacted by money market fee waivers

•Net interest revenue decreased 4%

•Decrease would have been 8% larger due to the impact of the 3Q19 lease-related impairment

Provision for credit losses of $9 million

Total noninterest expense of $2.7 billion, increased 4%

•3% of the increase driven by the 3Q19 tax-related reserve reduction

•Continued investments in technology

Investment Services

•Total revenue decreased 4%

•Income before taxes decreased 17%

•AUC/A of $38.6 trillion, increased 8%

Investment and Wealth Management

•Total revenue increased 3%

•Income before taxes decreased 17%, driven by 3Q19 tax-related reserve reduction

•AUM of $2.0 trillion, increased 9%

Capital

•CET1 ratio 13.0%; increased ~ 40 bps in 3Q20

•CET1 and Tier 1 capital increased $1.14 billion in 3Q20


CEO Commentary

“Our third quarter results reflect the resilience of our business model despite the significant impact of lower rates and associated money market fee waivers, as we reported EPS of 98 cents, down 8 percent year on year. Our operating margin was 30 percent as we controlled costs, and our return on tangible common equity was solid at 17 percent,” Todd Gibbons, Chief Executive Officer, said.

“Our pipeline is strong as we continue to win new mandates by differentiating ourselves with clients and addressing a broader set of their needs. While remaining focused on improving organic fee growth, we are also managing structural expenses by investing in automation and executing other efficiency programs to enhance the client experience. Our business model continues to generate significant excess capital. We look forward to recommencing share buybacks as soon as possible, which we expect to be meaningfully accretive to EPS,” Mr. Gibbons added.

“While uncertainty lies ahead in terms of how the pandemic evolves and its impact on the global economy, I believe the underlying strength of our franchise will become more apparent next year, as we expect to have most of the run-rate impact of lower rates and associated money market fee waivers in our earnings. At that point, we can start to more clearly demonstrate the progress we are making around our key priorities of driving organic growth, optimizing the balance sheet and executing on our efficiency priorities,” Mr. Gibbons further noted.

“I am also proud that our employees across the company have worked diligently throughout this unprecedented time to provide great client service and am confident the team we have in place will continue to navigate the challenges we face. We entered this crisis from a position of strength and have an unwavering focus on building ever greater value for all our stakeholders going forward,” Mr. Gibbons concluded.


Media Relations: Madelyn McHugh (212) 635-1376			Investor Relations: Magda Palczynska (212) 635-8529
(a) 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 3Q20 vs. 3Q19, unless otherwise noted.


BNY Mellon 3Q20 Earnings Release

CONSOLIDATED FINANCIAL HIGHLIGHTS


(in millions, except per share amounts and unless otherwise noted; not meaningful - N/M)									3Q20 vs.
			3Q20			2Q20		3Q19			2Q20		3Q19
Fee revenue	$	3,108		$	3,167	$	3,129		(2)	%	(1)	%
Net securities gains (losses)	9			9		(1)			N/M		N/M
Total fee and other revenue	3,117			3,176		3,128			(2)		—
Income from consolidated investment management funds	27			54		3			N/M		N/M
Net interest revenue	703			780		730			(10)		(4)
Total revenue	3,847			4,010		3,861			(4)		—
Provision for credit losses	9			143		(16)			N/M		N/M
Noninterest expense	2,681			2,686		2,590			—		4
Income before income taxes	1,157			1,181		1,287			(2)		(10)
Provision for income taxes	213			216		246			(1)		(13)
Net income	$	944		$	965	$	1,041		(2)	%	(9)	%
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	876		$	901	$	1,002		(3)	%	(13)	%


Operating leverage (a)																														(388)		bps	(388)		bps


Diluted earnings per common share	$	0.98		$	1.01		$	1.07		(3)	%	(8)	%
Average common shares and equivalents outstanding - diluted (in thousands)	891,069			890,561			935,677
Pre-tax operating margin	30		%	29		%	33		%

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

bps – basis points.

KEY DRIVERS (comparisons are 3Q20 vs. 3Q19, unless otherwise stated)

•Total revenue decreased less than 1% primarily reflecting:

•Fee revenue decreased 1% primarily reflecting higher money market fee waivers, partially offset by higher client activity and balances in Pershing and Asset Servicing, higher market values and the favorable impact of a weaker U.S. dollar.

•Net interest revenue decreased 4%. The decrease would have been 8% larger due to the impact of the 3Q19 lease-related impairment of $70 million. The decrease primarily reflects lower interest rates on interest-earning assets, partially offset by the benefit of lower deposit and funding rates, higher deposits, securities portfolio and loan balances.

•Provision for credit losses of $9 million reflects a fairly consistent macroeconomic outlook compared with 2Q20.

•Noninterest expense increased 4%, 3% of which was due to the impact of 3Q19 net reduction of reserves for tax-related exposure of certain investment management funds. The remainder of the increase primarily reflects continued investments in technology, higher professional, legal and other purchased services expense and the unfavorable impact of a weaker U.S. dollar, partially offset by lower staff and business development (travel and marketing) expenses.

•Effective tax rate of 18.4%.

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

•AUC/A of $38.6 trillion, increased 8%, primarily reflecting higher market values, net new business, higher client inflows and the favorable impact of a weaker U.S. dollar.

•AUM of $2.0 trillion, increased 9%, primarily reflecting higher market values, the favorable impact of a weaker U.S. dollar (principally versus the British pound) and net inflows.

Capital and liquidity

•Open market share repurchases temporarily suspended for 3Q20 and 4Q20 for CCAR banks.

•Paid $279 million in dividends to common shareholders.

•Return on common equity (“ROE”) of 9%; Return on tangible common equity (“ROTCE”) of 17% (a).

•Common Equity Tier 1 (“CET1”) ratio – 13.0%.

•Tier 1 leverage ratio – 6.5%.

•Supplementary leverage ratio (“SLR”) – 8.5% (b).

•Average liquidity coverage ratio (“LCR”) – 111%.

•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.

(b) See “Capital and Liquidity” on page 7 for additional information.

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


Page - 2


BNY Mellon 3Q20 Earnings Release

INVESTMENT SERVICES BUSINESS HIGHLIGHTS


(dollars in millions, unless otherwise noted; not meaningful - N/M)										3Q20 vs.
				3Q20			2Q20			3Q19		2Q20		3Q19
Total revenue by line of business:
Asset Servicing	$	1,354		$	1,463		$	1,411		(7)	%	(4)	%
Pershing	538			578			575			(7)		(6)
Issuer Services	435			431			466			1		(7)
Treasury Services	323			340			312			(5)		4
Clearance and Collateral Management	277			295			293			(6)		(5)
Total revenue by line of business	2,927			3,107			3,057			(6)		(4)
Provision for credit losses	(10)			145			(15)			N/M		N/M
Noninterest expense	2,020			1,989			1,973			2		2
Income before taxes	$	917		$	973		$	1,099		(6)	%	(17)	%

Pre-tax operating margin	31		%	31		%	36		%

Foreign exchange and other trading revenue	$	146		$	178		$	160		(18)	%	(9)	%
Securities lending revenue	$	37		$	51		$	39		(27)	%	(5)	%

Metrics:
Average loans	$	40,308		$	43,113		$	37,005		(7)	%	9	%
Average deposits	$	263,621		$	268,467		$	208,044		(2)	%	27	%

AUC/A at period end (in trillions) (current period is preliminary) (a)	$	38.6		$	37.3		$	35.8		3	%	8	%
Market value of securities on loan at period end (in billions) (b)	$	378		$	384		$	362		(2)	%	4	%

(a) Consists of AUC/A primarily from the Asset Servicing business and, to a lesser extent, the Clearance and Collateral Management, Issuer Services, Pershing and Wealth Management businesses. Includes the AUC/A of CIBC Mellon Global Securities Services Company (“CIBC Mellon”), a joint venture with the Canadian Imperial Bank of Commerce, of $1.4 trillion at Sept. 30, 2020, $1.3 trillion at June 30, 2020 and $1.4 trillion at Sept. 30, 2019.

(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 $62 billion at Sept. 30, 2020 and June 30, 2020 and $66 billion at Sept. 30, 2019.

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 interest rates, partially offset by higher client deposits and client volumes. The sequential decrease primarily reflects lower foreign exchange volumes, lower net interest revenue, a one-time fee recorded in 2Q20 and lower securities lending revenue driven by tighter spreads.

•Pershing - The year-over-year decrease primarily reflects the impact of rate-driven money market fee waivers, partially offset by higher money market balances. The sequential decrease primarily reflects lower clearing volumes and higher rate-driven money market fee waivers.

•Issuer Services - The year-over-year decrease primarily reflects lower Depositary Receipts revenue. The sequential increase primarily reflects seasonally higher Depositary Receipts revenue, partially offset by lower net interest revenue.

•Treasury Services - The year-over-year increase primarily reflects higher client deposits and money market balances. The sequential decrease reflects lower net interest revenue, partially offset by higher payment volumes.

•Clearance and Collateral Management - The year-over-year decrease primarily reflects lower investment income due to the 4Q19 sale of an equity investment. The sequential decrease primarily reflects lower clearance volumes and net interest revenue.

•Noninterest expense increased year-over-year primarily driven by continued investments in technology. Sequentially, noninterest expense increased primarily reflecting higher staff expense and the unfavorable impact of a weaker U.S. dollar.


Page - 3


BNY Mellon 3Q20 Earnings Release

INVESTMENT AND WEALTH MANAGEMENT BUSINESS HIGHLIGHTS


(dollars in millions, unless otherwise noted; not meaningful - N/M)										3Q20 vs.
				3Q20			2Q20			3Q19		2Q20		3Q19
Total revenue by line of business:
Investment Management	$	641		$	621		$	608		3	%	5	%
Wealth Management	277			265			279			5		(1)
Total revenue by line of business	918			886			887			4		3
Provision for credit losses	12			7			—			N/M		N/M
Noninterest expense	661			658			592			—		12
Income before taxes	$	245		$	221		$	295		11	%	(17)	%

Pre-tax operating margin	27		%	25		%	33		%
Adjusted pre-tax operating margin – Non-GAAP (a)	29		%	28		%	37		%

Metrics:
Average loans	$	11,503		$	11,791		$	12,013		(2)	%	(4)	%
Average deposits	$	17,570		$	17,491		$	14,083		—	%	25	%

AUM (in billions) (current period is preliminary) (b)	$	2,041		$	1,961		$	1,881		4	%	9	%
Wealth Management client assets (in billions) (current period is preliminary) (c)	$	265		$	254		$	259		4	%	2	%

(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.

KEY DRIVERS

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

•Investment Management - The year-over-year increase primarily reflects the impact of hedging activities in 3Q19, higher market values, the favorable impact of a weaker U.S. dollar and higher performance fees, partially offset by the impact of money market fee waivers. The sequential increase primarily reflects higher market values and the favorable impact of a weaker U.S. dollar, partially offset by lower seed capital gains, net of hedges.

•Wealth Management - The year-over-year decrease primarily reflects lower net interest revenue. Both comparisons reflect higher market values offset by a shift to lower fee investment products.

•Noninterest expense increased year-over-year primarily reflecting the net reduction of the reserves for tax-related exposure for certain investment management funds in 3Q19.


Page - 4


BNY Mellon 3Q20 Earnings Release

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



(in millions)	3Q20		2Q20		3Q19
Fee revenue (loss)	$	11	$	29	$	(5)
Net securities gains (losses)	9		9		(1)
Total fee and other revenue (loss)	20		38		(6)
Net interest (expense)	(25)		(36)		(80)
Total (loss) revenue	(5)		2		(86)
Provision for credit losses	7		(9)		(1)
Noninterest expense	—		39		25
(Loss) before taxes	$	(12)	$	(28)	$	(110)

KEY DRIVERS

•Fee revenue, net securities gains and net interest expense include corporate treasury and other investment activity, including hedging activity which offsets between fee revenue and net interest expense. Fee revenue increased year-over-year primarily reflecting higher corporate treasury activity and equity investment income. The sequential decrease in fee revenue primarily reflects lower corporate treasury activity and equity investment income. Net interest expense decreased year-over-year primarily reflecting the lease-related impairment of $70 million recorded in 3Q19 and corporate treasury activity. The sequential decrease in net interest expense primarily reflects corporate treasury activity.

•Noninterest expense decreased year-over-year and sequentially primarily reflecting lower staff expense.


Page - 5


BNY Mellon 3Q20 Earnings Release

MONEY MARKET FEE WAIVERS

The following table presents the impact of money market fee waivers on our consolidated fee revenue, net of distribution and servicing expense. A majority of the money market fee waivers were driven by low short-term interest rates.


Money market fee waivers
(in millions)	3Q20		2Q20		1Q20		YTD20
Investment services fees:
Asset servicing fees	$	(1)	$	—	$	—	$	(1)
Clearing services fees	(57)		(50)		(9)		(116)
Issuer services fees	(1)		(1)		—		(2)
Treasury services fees	(3)		(2)		—		(5)
Total investment services fees	(62)		(53)		(9)		(124)
Investment management and performance fees	(42)		(30)		(14)		(86)
Distribution and servicing revenue	(6)		(3)		—		(9)
Total fee and other revenue	(110)		(86)		(23)		(219)
Less: Distribution and servicing expense	9		7		—		16
Net impact of money market fee waivers	$	(101)	$	(79)	$	(23)	$	(203)

Impact to revenue by line of business (a):
Asset Servicing	$	(4)	$	(1)	$	—	$	(5)
Pershing	(73)		(60)		(9)		(142)
Issuer Services	(2)		(1)		—		(3)
Treasury Services	(1)		—		—		(1)
Investment Management	(28)		(24)		(14)		(66)
Wealth Management	(2)		—		—		(2)
Total impact to revenue by line of business	$	(110)	$	(86)	$	(23)	$	(219)

(a) The line of business revenue for management reporting purposes reflects the impact of revenue transferred between the businesses.


Page - 6


BNY Mellon 3Q20 Earnings Release

CAPITAL AND LIQUIDITY


Capital and liquidity ratios	Sept. 30, 2020				June 30, 2020				Dec. 31, 2019
Consolidated regulatory capital ratios: (a)
CET1 ratio	13.0		%		12.6		%		11.5		%
Tier 1 capital ratio	15.7				15.4				13.7
Total capital ratio	16.6				16.3				14.4
Tier 1 leverage ratio	6.5				6.2				6.6
SLR	8.5			(b)	8.2			(b)	6.1
BNY Mellon shareholders’ equity to total assets ratio	10.5		%		9.9		%		10.9		%
BNY Mellon common shareholders’ equity to total assets ratio	9.4		%		8.9		%		9.9		%

Average LCR	111		%		112		%		120		%

Book value per common share	$	45.58			$	44.21			$	42.12
Tangible book value per common share – Non-GAAP (c)	$	24.60			$	23.31			$	21.33




Common shares outstanding (in thousands)	886,136				885,862				900,683

(a) Regulatory capital ratios for Sept. 30, 2020 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) Reflects the application of a new rule effective April 1, 2020 to exclude certain central bank placements. Also effective on April 1, 2020 was the temporary exclusion of U.S. Treasury securities from the leverage exposure used in the SLR calculation which increased our consolidated SLR by 78 basis points at Sept. 30, 2020 and 40 basis points at June 30, 2020.

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

•CET1 capital totaled $21.2 billion at Sept. 30, 2020, an increase of $1.14 billion compared with June 30, 2020. The increase primarily reflects capital generated through earnings, foreign currency translation and unrealized gains on securities available-for-sale, partially offset by capital deployed through dividend payments.

NET INTEREST REVENUE


Net interest revenue										3Q20 vs.
(dollars in millions; not meaningful - N/M)	3Q20			2Q20			3Q19			2Q20		3Q19
Net interest revenue	$	703		$	780		$	730		(10)	%	(4)	%
Add: Tax equivalent adjustment	2			2			3			N/M		N/M
Net interest revenue, on a fully taxable equivalent (“FTE”) basis – Non-GAAP (a)	$	705		$	782		$	733		(10)	%	(4)	%

Net interest margin	0.79		%	0.88		%	0.99		%	(9)	bps	(20)	bps
Net interest margin (FTE) – Non-GAAP (a)	0.79		%	0.88		%	1.00		%	(9)	bps	(21)	bps

(a) Net interest revenue (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP include the tax equivalent adjustments on tax-exempt income. See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” on page 9 for information on this Non-GAAP measure.

bps – basis points.

•Net interest revenue decreased 4% year-over-year. The decrease would have been 8% larger due to the impact of the 3Q19 lease-related impairment of $70 million. The decrease primarily reflects lower interest rates on interest-earning assets, partially offset by the benefit of lower deposit and funding rates, higher deposits, securities portfolio and loan balances.

•Sequentially, the decrease was primarily driven by lower interest rates on interest-earning assets. This was partially offset by the benefit of lower deposit and funding rates and a larger securities portfolio.


Page - 7


BNY Mellon 3Q20 Earnings Release

THE BANK OF NEW YORK MELLON CORPORATION

Condensed Consolidated Income Statement


(in millions)	Quarter ended											Year-to-date
			Sept. 30, 2020		June 30, 2020		Sept. 30, 2019			Sept. 30, 2020		Sept. 30, 2019

Fee and other revenue
Investment services fees:
Asset servicing fees	$	1,168	$	1,173	$	1,152		$	3,500	$	3,415
Clearing services fees	397		431		419			1,298		1,227
Issuer services fees	295		277		324			835		866
Treasury services fees	152		144		140			445		412
Total investment services fees	2,012		2,025		2,035			6,078		5,920
Investment management and performance fees	835		786		832			2,483		2,506
Foreign exchange and other trading revenue	137		166		150			622		486
Financing-related fees	49		58		49			166		150
Distribution and servicing	29		27		33			87		95
Investment and other income	46		105		30			162		108
Total fee revenue	3,108		3,167		3,129			9,598		9,265
Net securities gains (losses)	9		9		(1)			27		7
Total fee and other revenue	3,117		3,176		3,128			9,625		9,272
Operations of consolidated investment management funds
Investment income	27		54		4			43		40
Interest of investment management fund note holders	—		—		1			—		1
Income from consolidated investment management funds	27		54		3			43		39
Net interest revenue
Interest revenue	820		943		1,942			3,333		5,827
Interest expense	117		163		1,212			1,036		3,454
Net interest revenue	703		780		730			2,297		2,373
Total revenue	3,847		4,010		3,861			11,965		11,684
Provision for credit losses	9		143		(16)			321		(17)
Noninterest expense
Staff	1,466		1,464		1,479			4,412		4,424
Professional, legal and other purchased services	355		337		316			1,022		978
Software and equipment	340		345		309			1,011		896
Net occupancy	136		137		138			408		413
Sub-custodian and clearing	119		120		111			344		331
Distribution and servicing	85		85		97			261		282
Bank assessment charges	30		35		31			100		93
Business development	17		20		47			79		148
Amortization of intangible assets	26		26		30			78		89
Other	107		117		32			364		282
Total noninterest expense	2,681		2,686		2,590			8,079		7,936
Income
Income before income taxes	1,157		1,181		1,287			3,565		3,765
Provision for income taxes	213		216		246			694		747
Net income	944		965		1,041			2,871		3,018
Net (income) attributable to noncontrolling interests related to consolidated investment management funds	(7)		(15)		(3)			(4)		(17)
Net income applicable to shareholders of The Bank of New York Mellon Corporation	937		950		1,038			2,867		3,001
Preferred stock dividends	(61)		(49)		(36)			(146)		(120)
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	876	$	901	$	1,002		$	2,721	$	2,881


Earnings per share applicable to the common shareholders of The Bank of New York Mellon Corporation	Quarter ended											Year-to-date
			Sept. 30, 2020		June 30, 2020		Sept. 30, 2019			Sept. 30, 2020		Sept. 30, 2019
(in dollars)
Basic	$	0.98	$	1.01	$	1.07		$	3.05	$	3.02
Diluted	$	0.98	$	1.01	$	1.07		$	3.04	$	3.01


Page - 8


BNY Mellon 3Q20 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. We believe 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 adjusted pre-tax operating margin – Non-GAAP, which is the pre-tax operating margin for the Investment and Wealth Management business net of distribution and servicing expense that was passed to third parties who distribute or service our managed funds. We believe that this measure is useful when evaluating the performance of the Investment and Wealth 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 Financial Supplement, (iii) in our presentations and (iv) 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, money market fee waivers, 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, including the potential effects of the coronavirus pandemic on any of the foregoing. 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,” “potentially,” “outlook” and words of similar meaning may signify forward-looking statements. These statements and other forward-looking statements contained in other public disclosures of BNY Mellon 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 a number of factors, including, but not limited to, the risk factors and other uncertainties set forth in BNY Mellon’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, the Annual Report on Form 10-K for the year ended Dec. 31, 2019 and BNY Mellon’s other filings with the Securities and Exchange Commission. Statements about the effects of the current and near-term market and macroeconomic outlook on BNY Mellon, including on its business, operations, financial performance and prospects, may constitute forward-looking statements, and 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 BNY Mellon’s control), including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on us, our clients, customers and third parties. Preliminary business metrics and regulatory capital ratios are subject to change, possibly materially, as BNY Mellon completes its Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2020. All forward-looking statements in this Earnings Release speak only as of Oct. 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 3Q20 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 and wealth management and investment services in 35 countries. As of Sept. 30, 2020, BNY Mellon had $38.6 trillion in assets under custody and/or administration, and $2.0 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, Chief Executive Officer, and Emily Portney, Chief Financial Officer, will host a conference call and simultaneous live audio webcast at 8:00 a.m. EDT on Oct. 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. EDT on Oct. 16, 2020. Replays of the conference call and audio webcast will be available beginning Oct. 16, 2020 at approximately 2:00 p.m. EDT through Nov. 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

Third Quarter 2020


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

Other
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)																	3Q20 vs.														YTD20 vs.
				3Q20			2Q20			1Q20			4Q19			3Q19			2Q20		3Q19				YTD20			YTD19			YTD19
Selected income statement data
Fee revenue	$	3,108		$	3,167		$	3,323		$	3,971		$	3,129			(2)	%	(1)	%		$	9,598		$	9,265			4	%
Net securities gains (losses)	9			9			9			(25)			(1)				N/M		N/M			27			7				N/M
Total fee and other revenue	3,117			3,176			3,332			3,946			3,128				(2)		—			9,625			9,272				4
Income (loss) from consolidated investment management funds	27			54			(38)			17			3				N/M		N/M			43			39				N/M
Net interest revenue	703			780			814			815			730				(10)		(4)			2,297			2,373				(3)
Total revenue	3,847			4,010			4,108			4,778			3,861				(4)		—			11,965			11,684				2
Provision for credit losses	9			143			169			(8)			(16)				N/M		N/M			321			(17)				N/M
Noninterest expense	2,681			2,686			2,712			2,964			2,590				—		4			8,079			7,936				2
Income before income taxes	1,157			1,181			1,227			1,822			1,287				(2)		(10)			3,565			3,765				(5)
Provision for income taxes	213			216			265			373			246				(1)		(13)			694			747				(7)
Net income	$	944		$	965		$	962		$	1,449		$	1,041			(2)	%	(9)	%		$	2,871		$	3,018			(5)	%
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	876		$	901		$	944		$	1,391		$	1,002			(3)	%	(13)	%		$	2,721		$	2,881			(6)	%
Diluted earnings per common share	$	0.98		$	1.01		$	1.05		$	1.52		$	1.07			(3)	%	(8)	%		$	3.04		$	3.01			1	%
Average common shares and equivalents outstanding - diluted (in thousands)	891,069			890,561			896,689			914,739			935,677				—	%	(5)	%		892,793			951,876				(6)	%

Financial ratios (Returns are annualized)
Pre-tax operating margin	30		%	29		%	30		%	38		%	33		%							30		%	32		%
Return on common equity	8.7		%	9.4		%	10.1		%	14.6		%	10.6		%							9.4		%	10.3		%
Return on tangible common equity – Non-GAAP (a)	16.7		%	18.5		%	20.4		%	29.3		%	21.4		%							18.5		%	21.1		%
Non-U.S. revenue as a percentage of total revenue	37		%	36		%	36		%	31		%	37		%							37		%	36		%

Period end
Assets under custody and/or administration (“AUC/A”) (in trillions) (b)	$	38.6		$	37.3		$	35.2		$	37.1		$	35.8			3	%	8	%
Assets under management (“AUM”) (in trillions)	$	2.04		$	1.96		$	1.80		$	1.91		$	1.88			4	%	9	%
Full-time employees	48,600			48,300			47,900			48,400			48,700				1	%	—	%
Book value per common share	$	45.58		$	44.21		$	42.47		$	42.12		$	40.75
Tangible book value per common share – Non-GAAP (a)	$	24.60		$	23.31		$	21.53		$	21.33		$	20.59
Cash dividends per common share	$	0.31		$	0.31		$	0.31		$	0.31		$	0.31
Common dividend payout ratio	32		%	31		%	30		%	20		%	29		%
Closing stock price per common share	$	34.34		$	38.65		$	33.68		$	50.33		$	45.21
Market capitalization	$	30,430		$	34,239		$	29,822		$	45,331		$	41,693
Common shares outstanding (in thousands)	886,136			885,862			885,443			900,683			922,199

Capital ratios at period end (c)
Common Equity Tier 1 ("CET1") ratio	13.0		%	12.6		%	11.3		%	11.5		%	11.1		%
Tier 1 capital ratio	15.7		%	15.4		%	13.5		%	13.7		%	13.2		%
Total capital ratio	16.6		%	16.3		%	14.3		%	14.4		%	14.0		%
Tier 1 leverage ratio	6.5		%	6.2		%	6.0		%	6.6		%	6.5		%
Supplementary leverage ratio ("SLR")	8.5		%	8.2		%	5.6		%	6.1		%	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 $1.4 trillion at Sept. 30, 2020, $1.3 trillion at June 30, 2020, $1.2 trillion at March 31, 2020, $1.5 trillion at Dec. 31, 2019 and $1.4 trillion at Sept. 30, 2019.
(c) Regulatory capital ratios for Sept. 30, 2020 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 Sept. 30,2020, June 30, 2020, Dec. 31, 2019 and Sept. 30, 2019, was the Advanced Approaches, and for March 31, 2020 was the Standardized Approach for the CET1 and Tier 1 capital ratios and the Advanced Approaches for the Total capital ratio.
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)												3Q20 vs.												YTD20 vs.
			3Q20		2Q20		1Q20		4Q19		3Q19			2Q20		3Q19			YTD20		YTD19			YTD19
Revenue
Investment services fees:
Asset servicing fees	$	1,168	$	1,173	$	1,159	$	1,148	$	1,152		—	%	1	%		$	3,500	$	3,415		2	%
Clearing services fees	397		431		470		421		419			(8)		(5)			1,298		1,227			6
Issuer services fees	295		277		263		264		324			6		(9)			835		866			(4)
Treasury services fees	152		144		149		147		140			6		9			445		412			8
Total investment services fees	2,012		2,025		2,041		1,980		2,035			(1)		(1)			6,078		5,920			3
Investment management and performance fees	835		786		862		883		832			6		—			2,483		2,506			(1)
Foreign exchange and other trading revenue	137		166		319		168		150			(17)		(9)			622		486			28
Financing-related fees	49		58		59		46		49			(16)		—			166		150			11
Distribution and servicing	29		27		31		34		33			7		(12)			87		95			(8)
Investment and other income	46		105		11		860		30			N/M		N/M			162		108			N/M
Total fee revenue	3,108		3,167		3,323		3,971		3,129			(2)		(1)			9,598		9,265			4
Net securities gains (losses)	9		9		9		(25)		(1)			N/M		N/M			27		7			N/M
Total fee and other revenue	3,117		3,176		3,332		3,946		3,128			(2)		—			9,625		9,272			4
Income (loss) from consolidated investment management funds	27		54		(38)		17		3			N/M		N/M			43		39			N/M
Net interest revenue	703		780		814		815		730			(10)		(4)			2,297		2,373			(3)
Total revenue	3,847		4,010		4,108		4,778		3,861			(4)		—			11,965		11,684			2
Provision for credit losses	9		143		169		(8)		(16)			N/M		N/M			321		(17)			N/M
Noninterest expense
Staff	1,466		1,464		1,482		1,639		1,479			—		(1)			4,412		4,424			—
Professional, legal and other purchased services	355		337		330		367		316			5		12			1,022		978			4
Software and equipment	340		345		326		326		309			(1)		10			1,011		896			13
Net occupancy	136		137		135		151		138			(1)		(1)			408		413			(1)
Sub-custodian and clearing	119		120		105		119		111			(1)		7			344		331			4
Distribution and servicing	85		85		91		92		97			—		(12)			261		282			(7)
Bank assessment charges	30		35		35		32		31			(14)		(3)			100		93			8
Business development	17		20		42		65		47			(15)		(64)			79		148			(47)
Amortization of intangible assets	26		26		26		28		30			—		(13)			78		89			(12)
Other	107		117		140		145		32			(9)		234			364		282			29
Total noninterest expense	2,681		2,686		2,712		2,964		2,590			—		4			8,079		7,936			2
Income before income taxes	1,157		1,181		1,227		1,822		1,287			(2)		(10)			3,565		3,765			(5)
Provision for income taxes	213		216		265		373		246			(1)		(13)			694		747			(7)
Net income	944		965		962		1,449		1,041			(2)		(9)			2,871		3,018			(5)
Net (income) loss attributable to noncontrolling interests	(7)		(15)		18		(9)		(3)			N/M		N/M			(4)		(17)			N/M
Preferred stock dividends	(61)		(49)		(36)		(49)		(36)			N/M		N/M			(146)		(120)			N/M
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	876	$	901	$	944	$	1,391	$	1,002		(3)	%	(13)	%		$	2,721	$	2,881		(6)	%

Average common shares and equivalents outstanding: Basic	889,499		889,020		894,122		911,324		933,264			—	%	(5)	%		891,050		949,035			(6)	%
Diluted	891,069		890,561		896,689		914,739		935,677			—	%	(5)	%		892,793		951,876			(6)	%

Earnings per common share: Basic	$	0.98	$	1.01	$	1.05	$	1.52	$	1.07		(3)	%	(8)	%		$	3.05	$	3.02		1	%
Diluted	$	0.98	$	1.01	$	1.05	$	1.52	$	1.07		(3)	%	(8)	%		$	3.04	$	3.01		1	%
N/M - Not meaningful.


THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
	2020										2019
(in millions)	Sept. 30		June 30		March 31		Dec. 31		Sept. 30
Assets
Cash and due from banks	$	4,104	$	4,776	$	5,091	$	4,830	$	6,718
Interest-bearing deposits with the Federal Reserve and other central banks	106,185		112,728		146,535		95,042		73,811
Interest-bearing deposits with banks	19,027		18,045		22,672		14,811		15,417
Federal funds sold and securities purchased under resale agreements	29,647		36,638		27,363		30,182		43,723
Securities	155,339		154,682		139,273		123,033		122,340
Trading assets	13,074		14,150		12,918		13,571		10,180
Loans	55,491		55,397		62,368		54,953		54,881
Allowance for loan losses	(325)		(302)		(140)		(122)		(127)
Net loans	55,166		55,095		62,228		54,831		54,754
Premises and equipment	3,617		3,598		3,514		3,625		3,149
Accrued interest receivable	489		540		576		624		596
Goodwill	17,357		17,253		17,240		17,386		17,248
Intangible assets	3,026		3,045		3,070		3,107		3,124
Other assets	20,779		21,306		27,446		20,221		21,727
Subtotal assets of operations	427,810		441,856		467,926		381,263		372,787
Assets of consolidated investment management funds, at fair value	588		460		229		245		381
Total assets	$	428,398	$	442,316	$	468,155	$	381,508	$	373,168
Liabilities
Deposits	$	296,312	$	305,470	$	336,717	$	259,466	$	249,660
Federal funds purchased and securities sold under repurchase agreements	15,907		14,512		13,128		11,401		11,796
Trading liabilities	6,084		5,595		6,625		4,841		4,756
Payables to customers and broker-dealers	23,514		25,012		24,016		18,758		18,364
Commercial paper	671		665		1,121		3,959		3,538
Other borrowed funds	420		1,628		1,544		599		820
Accrued taxes and other expenses	5,347		5,029		4,705		5,642		5,081
Other liabilities	8,671		12,869		11,425		7,612		9,796
Long-term debt	26,121		27,566		27,494		27,501		27,872
Subtotal liabilities of operations	383,047		398,346		426,775		339,779		331,683
Liabilities of consolidated investment management funds, at fair value	4		4		1		1		15
Total liabilities	383,051		398,350		426,776		339,780		331,698
Temporary equity
Redeemable noncontrolling interests	179		157		140		143		147
Permanent equity
Preferred stock	4,532		4,532		3,542		3,542		3,542
Common stock	14		14		14		14		14
Additional paid-in capital	27,741		27,702		27,644		27,515		27,471
Retained earnings	33,821		33,224		32,601		31,894		30,789
Accumulated other comprehensive loss, net of tax	(1,359)		(1,943)		(2,827)		(2,638)		(2,893)
Less: Treasury stock, at cost	(19,832)		(19,832)		(19,829)		(18,844)		(17,803)
Total The Bank of New York Mellon Corporation shareholders’ equity	44,917		43,697		41,145		41,483		41,120
Nonredeemable noncontrolling interests of consolidated investment management funds	251		112		94		102		203
Total permanent equity	45,168		43,809		41,239		41,585		41,323
Total liabilities, temporary equity and permanent equity	$	428,398	$	442,316	$	468,155	$	381,508	$	373,168


THE BANK OF NEW YORK MELLON CORPORATION
FEE AND OTHER REVENUE

											3Q20 vs.										YTD20 vs.
(dollars in millions)	3Q20		2Q20		1Q20		4Q19		3Q19		2Q20		3Q19		YTD20		YTD19		YTD19
Investment services fees:
Asset servicing fees (a)	$	1,128	$	1,117	$	1,108	$	1,104	$	1,109	1	%	2	%	$	3,353	$	3,280	2	%
Securities lending revenue	40		56		51		44		43		(29)		(7)		147		135		9
Clearing services fees (b)	397		431		470		421		419		(8)		(5)		1,298		1,227		6
Issuer services fees	295		277		263		264		324		6		(9)		835		866		(4)
Treasury services fees	152		144		149		147		140		6		9		445		412		8
Total investment services fees	2,012		2,025		2,041		1,980		2,035		(1)		(1)		6,078		5,920		3
Investment management and performance fees (c):
Investment management fees	828		781		812		835		830		6		—		2,421		2,471		(2)
Performance fees	7		5		50		48		2		N/M		N/M		62		35		77
Total investment management and performance fees (d)	835		786		862		883		832		6		—		2,483		2,506		(1)
Foreign exchange and other trading revenue:
Foreign exchange	151		174		253		138		129		(13)		17		578		439		32
Other trading (loss) revenue	(14)		(8)		66		30		21		N/M		N/M		44		47		N/M
Total foreign exchange and other trading revenue	137		166		319		168		150		(17)		(9)		622		486		28
Financing-related fees	49		58		59		46		49		(16)		—		166		150		11
Distribution and servicing	29		27		31		34		33		7		(12)		87		95		(8)
Investment and other income:
Corporate/bank-owned life insurance	33		36		36		43		33		N/M		N/M		105		95		N/M
Expense reimbursements from joint venture	23		19		21		20		21		N/M		N/M		63		59		N/M
Asset-related gains	4		3		4		815		2		N/M		N/M		11		4		N/M
Seed capital gains (losses) (c)	9		23		(31)		4		—		N/M		N/M		1		10		N/M
Other (loss) income	(23)		24		(19)		(22)		(26)		N/M		N/M		(18)		(60)		N/M
Total investment and other income (c)	46		105		11		860		30		N/M		N/M		162		108		N/M
Total fee revenue	3,108		3,167		3,323		3,971		3,129		(2)		(1)		9,598		9,265		4
Net securities gains (losses)	9		9		9		(25)		(1)		N/M		N/M		27		7		N/M
Total fee and other revenue	$	3,117	$	3,176	$	3,332	$	3,946	$	3,128	(2)	%	—	%	$	9,625	$	9,272	4	%
(a) Asset servicing fees include the fees from the Clearance and Collateral Management business.
(b) Clearing services fees are almost entirely earned by our Pershing business.
(c) Excludes seed capital gains (losses) related to consolidated investment management funds, which are reflected in operations of consolidated investment management funds.
(d) On a constant currency basis (Non-GAAP), investment management and performance fees decreased 1% compared with 3Q19. 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
	3Q20						2Q20						1Q20					4Q19					3Q19
	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)
Assets
Interest-earning assets:
Interest-bearing deposits with the Federal Reserve and other central banks	$	90,670	(0.04)	%	$	94,229	(0.03)	%	$	80,403	0.39	%		$	61,627	0.60	%	$	60,030	0.67	%
Interest-bearing deposits with banks (primarily foreign banks)	19,202		0.42		21,093		0.76		17,081		1.37			15,788		1.63		15,324		1.89
Federal funds sold and securities purchased under resale agreements (a)	30,342		0.63		30,265		0.82		34,109		4.67			38,846		4.62		40,816		6.42
Margin loans	12,870		1.24		12,791		1.28		12,984		2.69			11,609		3.25		10,303		4.02
Non-margin loans:
Domestic offices	30,053		2.12		31,185		2.21		31,720		3.02			29,690		3.36		29,285		2.75		(b)
Foreign offices	10,693		1.45		12,743		1.84		11,170		2.55			11,418		2.70		11,247		2.97
Total non-margin loans	40,746		1.94		43,928		2.10		42,890		2.89			41,108		3.18		40,532		2.81		(b)
Securities:
U.S. government obligations	30,073		1.36		27,901		1.52		23,175		1.87			18,444		2.08		19,315		2.11
U.S. government agency obligations	78,300		1.68		74,583		1.92		69,046		2.32			67,494		2.36		67,235		2.49
State and political subdivisions (c)	1,500		2.51		1,025		2.98		1,033		3.06			1,134		3.03		1,217		3.05
Other securities (c)	46,719		0.59		45,511		0.82		36,375		0.95			35,242		1.64		33,729		1.75
Trading securities (c)	7,212		0.91		6,236		1.13		6,840		2.36			6,695		2.41		5,653		2.80
Total securities (c)	163,804		1.28		155,256		1.50		136,469		1.88			129,009		2.13		127,149		2.25
Total interest-earning assets (c)	$	357,634	0.92	%	$	357,562	1.06	%	$	323,936	1.95	%		$	297,987	2.30	%	$	294,154	2.63	%	(b)
Noninterest-earning assets	57,231				57,797				61,342					56,354				56,525
Total assets	$	414,865			$	415,359			$	385,278				$	354,341			$	350,679

Liabilities and equity
Interest-bearing liabilities:
Interest-bearing deposits:
Domestic offices	$	102,767	(0.01)	%	$	102,135	0.06	%	$	99,915	0.69	%		$	87,162	0.98	%	$	82,663	1.28	%
Foreign offices	108,733		(0.09)		108,508		(0.12)		97,717		0.29			95,262		0.49		94,738		0.71
Total interest-bearing deposits	211,500		(0.05)		210,643		(0.03)		197,632		0.49			182,424		0.73		177,401		0.98
Federal funds purchased and securities sold under repurchase agreements (a)	16,850		0.13		14,209		0.03		13,919		7.96			12,668		9.11		13,432		13.08
Trading liabilities	2,692		0.30		1,974		0.39		1,626		1.61			1,504		2.25		1,371		2.33
Other borrowed funds	873		1.40		2,272		1.30		719		2.27			709		2.83		1,148		3.24
Commercial paper	2,274		0.09		191		1.02		1,581		1.56			1,792		1.66		3,796		2.26
Payables to customers and broker-dealers	18,501		(0.01)		18,742		(0.01)		16,386		0.73			15,178		1.07		15,440		1.52
Long-term debt	26,511		2.01		28,122		2.42		27,231		2.83			28,117		3.09		28,386		3.24
Total interest-bearing liabilities	$	279,201	0.16	%	$	276,153	0.24	%	$	259,094	1.17	%		$	242,392	1.48	%	$	240,974	1.99	%
Total noninterest-bearing deposits	67,610				72,411				60,577					49,632				49,027
Other noninterest-bearing liabilities	23,393				24,121				24,229					20,681				19,280
Total The Bank of New York Mellon Corporation shareholders’ equity	44,456				42,486				41,206					41,384				41,139
Noncontrolling interests	205				188				172					252				259
Total liabilities and equity	$	414,865			$	415,359			$	385,278				$	354,341			$	350,679
Net interest margin			0.79	%			0.88	%			1.01	%				1.09	%			0.99	%	(b)
Net interest margin (FTE) – Non-GAAP (d)			0.79	%			0.88	%			1.01	%				1.09	%			1.00	%	(b)
(a) Includes the average impact of offsetting under enforceable netting agreements of approximately $43 billion for 3Q20, $67 billion for 2Q20, $80 billion for 1Q20, $60 billion for 4Q19 and $68 billion for 3Q19. 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 0.26% for 3Q20 and 2Q20, 1.39% for 1Q20, 1.82% for 4Q19 and 2.42% for 3Q19. 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 0.04% for 3Q20, 0.00% for 2Q20, 1.18% for 1Q20, 1.59% for 4Q19 and 2.17% for 3Q19. 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
	2020																	2019
(dollars in millions)	Sept. 30				June 30				March 31			Dec. 31			Sept. 30
Consolidated regulatory capital ratios (a)
Standardized Approach:
CET1 capital	$	21,171			$	20,035			$	18,465		$	18,540		$	18,196
Tier 1 capital	25,614				24,478				21,933			21,996			21,677
Total capital	27,331				26,183				23,494			23,449			23,145
Risk-weighted assets	156,741				157,290				163,006			148,695			148,399

CET1 ratio	13.5		%		12.7		%		11.3		%	12.5		%	12.3		%
Tier 1 capital ratio	16.3				15.6				13.5			14.8			14.6
Total capital ratio	17.4				16.6				14.4			15.8			15.6

Advanced Approaches:
CET1 capital	$	21,171			$	20,035			$	18,465		$	18,540		$	18,196
Tier 1 capital	25,614				24,478				21,933			21,996			21,677
Total capital	27,095				25,937				23,281			23,233			22,921
Risk-weighted assets	163,136				159,340				162,561			160,898			164,172

CET1 ratio	13.0		%		12.6		%		11.4		%	11.5		%	11.1		%
Tier 1 capital ratio	15.7				15.4				13.5			13.7			13.2
Total capital ratio	16.6				16.3				14.3			14.4			14.0

Tier 1 leverage ratio	6.5		%		6.2		%		6.0		%	6.6		%	6.5		%

SLR:
Leverage exposure	$	300,105		(b)	$	297,300		(b)	$	392,807		$	362,452		$	359,023
SLR	8.5		%	(b)	8.2		%	(b)	5.6		%	6.1		%	6.0		%

Average liquidity coverage ratio	111		%		112		%		115		%	120		%	117		%
(a) Regulatory capital ratios for Sept. 30, 2020 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 Sept. 30, 2020, June 30, 2020, Dec. 31, 2019 and Sept. 30, 2019, was the Advanced Approaches, and for March 31, 2020 was the Standardized Approach for the CET1 and Tier 1 capital ratios and the Advanced Approaches for the Total capital ratio.
(b) Reflects the application of a new rule effective April 1, 2020 to exclude certain central bank placements. Also effective on April 1, 2020 was the temporary exclusion of U.S. Treasury securities from the leverage exposure used in the SLR calculation which increased our consolidated SLR by 78 basis points at Sept. 30, 2020 and 40 basis points at June 30, 2020.


THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SERVICES BUSINESS

																3Q20 vs.												YTD20 vs.
(dollars in millions)	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20		3Q19		YTD20			YTD19			YTD19
Revenue:
Investment services fees:
Asset servicing fees (ex. securities lending revenue) (a)	$	1,119		$	1,113		$	1,101		$	1,098		$	1,099		1	%	2	%	$	3,333		$	3,252		2	%
Securities lending revenue	37			51			46			40			39			(27)		(5)		134			123			9
Clearing services fees (b)	397			431			470			421			419			(8)		(5)		1,298			1,228			6
Issuer services fees	295			277			263			264			324			6		(9)		835			866			(4)
Treasury services fees	152			144			149			147			139			6		9		445			411			8
Total investment services fees	2,000			2,016			2,029			1,970			2,020			(1)		(1)		6,045			5,880			3
Foreign exchange and other trading revenue	146			178			261			151			160			(18)		(9)		585			470			24
Other (c)	100			145			146			115			116			(31)		(14)		391			340			15
Total fee and other revenue	2,246			2,339			2,436			2,236			2,296			(4)		(2)		7,021			6,690			5
Net interest revenue	681			768			806			778			761			(11)		(11)		2,255			2,348			(4)
Total revenue	2,927			3,107			3,242			3,014			3,057			(6)		(4)		9,276			9,038			3
Provision for credit losses	(10)			145			149			(5)			(15)			N/M		N/M		284			(11)			N/M
Noninterest expense (ex. amortization of intangible assets)	2,002			1,971			1,969			2,160			1,952			2		3		5,942			5,856			1
Amortization of intangible assets	18			18			18			19			21			—		(14)		54			61			(11)
Total noninterest expense	2,020			1,989			1,987			2,179			1,973			2		2		5,996			5,917			1
Income before taxes	$	917		$	973		$	1,106		$	840		$	1,099		(6)	%	(17)	%	$	2,996		$	3,132		(4)	%

Pre-tax operating margin	31		%	31		%	34		%	28		%	36		%					32		%	35		%

Total revenue by line of business:
Asset Servicing	$	1,354		$	1,463		$	1,531		$	1,411		$	1,411		(7)	%	(4)	%	$	4,348		$	4,223		3	%
Pershing	538			578			653			579			575			(7)		(6)		1,769			1,708			4
Issuer Services	435			431			419			415			466			1		(7)		1,285			1,308			(2)
Treasury Services	323			340			339			329			312			(5)		4		1,002			946			6
Clearance and Collateral Management	277			295			300			280			293			(6)		(5)		872			853			2
Total revenue by line of business	$	2,927		$	3,107		$	3,242		$	3,014		$	3,057		(6)	%	(4)	%	$	9,276		$	9,038		3	%
(a) Asset servicing fees include the fees from the Clearance and Collateral Management business.
(b) Clearing services fees are almost entirely earned by our Pershing business.
(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

											3Q20 vs.										YTD20 vs.
(dollars in millions, unless otherwise noted)	3Q20		2Q20		1Q20		4Q19		3Q19		2Q20		3Q19		YTD20		YTD19		YTD19
Average loans	$	40,308	$	43,113	$	41,789	$	38,721	$	37,005	(7)	%	9	%	$	41,731	$	36,881	13	%
Average assets	$	329,324	$	335,288	$	304,089	$	278,098	$	269,926	(2)	%	22	%	$	322,924	$	263,631	22	%
Average deposits	$	263,621	$	268,467	$	242,187	$	215,388	$	208,044	(2)	%	27	%	$	258,112	$	201,472	28	%

AUC/A at period end (in trillions) (a)(b)	$	38.6	$	37.3	$	35.2	$	37.1	$	35.8	3	%	8	%
Market value of securities on loan at period end (in billions) (c)	$	378	$	384	$	389	$	378	$	362	(2)	%	4	%

Pershing
Net new assets (U.S. platform) (in billions) (d)	$	12	$	11	$	31	$	33	$	19	N/M		N/M
Average active clearing accounts (U.S. platform) (in thousands)	6,556		6,507		6,437		6,340		6,283		1	%	4	%
Average long-term mutual fund assets (U.S. platform)	$	597,312	$	547,579	$	549,206	$	573,475	$	547,522	9	%	9	%
Average investor margin loans (U.S. platform)	$	9,350	$	9,235	$	9,419	$	9,420	$	9,222	1	%	1	%

Clearance and Collateral Management
Average tri-party collateral management balances (in billions)	$	3,417	$	3,573	$	3,724	$	3,562	$	3,550	(4)	%	(4)	%
(a) Sept. 30, 2020 information is preliminary.
(b) Consists of AUC/A primarily from the Asset Servicing business and, to a lesser extent, the Clearance and Collateral Management, Issuer Services, Pershing and Wealth Management businesses. Includes the AUC/A of CIBC Mellon of $1.4 trillion at Sept. 30, 2020, $1.3 trillion at June 30, 2020, $1.2 trillion at March 31, 2020, $1.5 trillion at Dec. 31, 2019 and $1.4 trillion at Sept. 30, 2019.
(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 $62 billion at Sept. 30, 2020 and June 30, 2020, $59 billion at March 31, 2020, $60 billion at Dec. 31, 2019 and $66 billion at Sept. 30, 2019.
(d) Net new assets represents net flows of assets (e.g., net cash deposits and net securities transfers) in customer accounts in Pershing LLC, a U.S. broker-dealer.
N/M - Not meaningful.


THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT AND WEALTH MANAGEMENT BUSINESS

																3Q20 vs.												YTD20 vs.
(dollars in millions)	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20		3Q19		YTD20			YTD19			YTD19
Revenue:
Investment management fees (a)	$	828		$	782		$	812		$	836		$	830		6	%	—	%	$	2,422		$	2,471		(2)	%
Performance fees	7			5			50			48			2			N/M		N/M		62			35			77
Investment management and performance fees (b)	835			787			862			884			832			6		—		2,484			2,506			(1)
Distribution and servicing	31			34			43			44			45			(9)		(31)		108			134			(19)
Other (a)	5			17			(59)			(4)			(39)			N/M		N/M		(37)			(79)			N/M
Total fee and other revenue (a)	871			838			846			924			838			4		4		2,555			2,561			—
Net interest revenue	47			48			52			47			49			(2)		(4)		147			175			(16)
Total revenue	918			886			898			971			887			4		3		2,702			2,736			(1)
Provision for credit losses	12			7			9			—			—			N/M		N/M		28			(1)			N/M
Noninterest expense (ex. amortization of intangible assets)	653			650			687			722			582			—		12		1,990			1,888			5
Amortization of intangible assets	8			8			8			9			10			—		(20)		24			28			(14)
Total noninterest expense	661			658			695			731			592			—		12		2,014			1,916			5
Income before taxes	$	245		$	221		$	194		$	240		$	295		11	%	(17)	%	$	660		$	821		(20)	%

Pre-tax operating margin	27		%	25		%	22		%	25		%	33		%					24		%	30		%
Adjusted pre-tax operating margin – Non-GAAP (c)	29		%	28		%	24		%	27		%	37		%					27		%	33		%

Total revenue by line of business:
Investment Management	$	641		$	621		$	620		$	692		$	608		3	%	5	%	$	1,882		$	1,870		1	%
Wealth Management	277			265			278			279			279			5		(1)		820			866			(5)
Total revenue by line of business	$	918		$	886		$	898		$	971		$	887		4	%	3	%	$	2,702		$	2,736		(1)	%

Average loans	$	11,503		$	11,791		$	12,124		$	12,022		$	12,013		(2)	%	(4)	%	$	11,805		$	12,184		(3)	%
Average assets	$	30,160		$	30,327		$	30,543		$	28,481		$	27,840		(1)	%	8	%	$	30,343		$	29,815		2	%
Average deposits	$	17,570		$	17,491		$	16,144		$	15,195		$	14,083		—	%	25	%	$	17,070		$	14,831		15	%
(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 decreased 1% compared with 3Q19. 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

											3Q20 vs.
(dollars in billions)	3Q20		2Q20		1Q20		4Q19		3Q19		2Q20		3Q19
AUM by product type (a)(b)
Equity	$	149	$	141	$	120	$	154	$	147	6	%	1	%
Fixed income	241		224		211		224		211		8		14
Index	350		333		274		339		321		5		9
Liability-driven investments	788		752		705		728		742		5		6
Multi-asset and alternative investments	193		185		171		192		182		4		6
Cash	320		326		315		273		278		(2)		15
Total AUM by product type	$	2,041	$	1,961	$	1,796	$	1,910	$	1,881	4	%	9	%

Changes in AUM (a)(b)
Beginning balance of AUM	$	1,961	$	1,796	$	1,910	$	1,881	$	1,843
Net inflows (outflows):
Long-term strategies:
Equity	(4)		(2)		(2)		(6)		(4)
Fixed income	1		4		—		5		2
Liability-driven investments	14		(2)		(5)		(3)		(4)
Multi-asset and alternative investments	(3)		—		(1)		3		(1)
Total long-term active strategies inflows (outflows)	8		—		(8)		(1)		(7)
Index	(3)		9		3		(5)		(3)
Total long-term strategies inflows (outflows)	5		9		(5)		(6)		(10)
Short-term strategies:
Cash	(10)		11		43		(7)		11
Total net (outflows) inflows	(5)		20		38		(13)		1
Net market impact	41		143		(91)		(20)		66
Net currency impact	44		2		(61)		62		(29)

Ending balance of AUM	$	2,041	$	1,961	$	1,796	$	1,910	$	1,881	4	%	9	%

Wealth Management client assets (a)(c)	$	265	$	254	$	236	$	266	$	259	4	%	2	%
(a) Sept. 30, 2020 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)	3Q20		2Q20		1Q20		4Q19			3Q19		YTD20		YTD19
Fee revenue (loss)	$	11	$	29	$	21	$	817	(a)	$	(5)	$	61	$	36
Net securities gains (losses)	9		9		9		(23)			(1)		27		7
Total fee and other revenue (loss)	20		38		30		794			(6)		88		43
Net interest (expense)	(25)		(36)		(44)		(10)			(80)		(105)		(150)
Total (loss) revenue	(5)		2		(14)		784			(86)		(17)		(107)
Provision for credit losses	7		(9)		11		(3)			(1)		9		(5)
Noninterest expense	—		39		30		54			25		69		103
(Loss) income before taxes	$	(12)	$	(28)	$	(55)	$	733		$	(110)	$	(95)	$	(205)

Average loans and leases	$	1,805	$	1,815	$	1,961	$	1,974		$	1,817	$	1,861	$	1,789
Average assets	$	55,381	$	49,744	$	50,646	$	47,762		$	52,913	$	51,936	$	49,683
(a) Includes a gain on sale of an equity investment.


THE BANK OF NEW YORK MELLON CORPORATION
SECURITIES PORTFOLIO

(dollars in millions)	June 30, 2020			3Q20 change in unrealized gain (loss)		Sept. 30, 2020							Fair value as a % of amortized cost (a)		Unrealized gain (loss)			% Floating rate			Ratings (c)
																Amortized cost			Fair value												AAA/ AA-	A+/ A-	BBB+/ BBB-	BB+ and lower	A1+/ A2 & SP-1+	Not rated
						Fair value																															(b)
Agency RMBS	$	60,401		$	47	$	61,348	$	62,922		103	%	$	1,574		16	%		100	%	—	%	—	%	—	%	—	%	—	%
U.S. Treasury	28,651			83		26,454		26,964			102		510			42			100		—		—		—		—		—
Sovereign debt/sovereign guaranteed	16,868			8		14,908		15,086			101		178			10			67		7		25		1		—		—
Agency commercial MBS	11,731			45		11,340		11,777			104		437			32			100		—		—		—		—		—
Supranational	5,484			5		7,121		7,176			101		55			46			100		—		—		—		—		—
Foreign covered bonds	5,598			14		5,777		5,841			101		64			35			99		1		—		—		—		—
U.S. government agencies	5,056			8		5,566		5,646			101		80			21			100		—		—		—		—		—
CLOs	4,432			44		4,707		4,657			99		(50)			100			99		—		—		—		—		1
Foreign government agencies	3,575			4		3,924		3,967			101		43			29			94		6		—		—		—		—
Other asset-backed securities	2,743			8		2,903		2,930			101		27			25			99		—		—		1		—		—
Non-agency commercial MBS	2,602			34		2,565		2,684			105		119			23			100		—		—		—		—		—
Non-agency RMBS (d)	1,672			14		1,864		2,013			108		149			55			60		5		2		20		—		13
State and political subdivisions	1,196			(1)		1,676		1,705			102		29			1			83		13		3		—		—		1
Corporate bonds	831			—		988		1,030			104		42			—			19		64		17		—		—		—
Commercial paper and certificates of deposits (e)(f)	3,392			(4)		650		652			100		2			55			—		—		—		—		100		—
Other	1			—		1		1			100		—			—			—		—		—		—		—		100
Total securities	$	154,233	(g)	$	309	$	151,792	$	155,051	(g)(h)	102	%	$	3,259	(g)(i)	27	%		95	%	2	%	3	%	—	%	—	%	—	%
(a) Amortized cost reflects historical impairments.
(b) Includes the impact of hedges.
(c) Represents ratings by S&P, or the equivalent.
(d) Includes RMBS that were included in the former Grantor Trust of $538 million at June 30, 2020 and $512 million at Sept. 30, 2020.
(e) Includes amounts purchased from affiliated money market funds of $1,853 million at June 30, 2020 and $357 million at Sept. 30, 2020.
(f) Includes amounts funded by borrowings from the Federal Reserve Bank under its Money Market Mutual Fund Liquidity Facility program of $1,539 million at June 30, 2020 and $295 million at Sept. 30, 2020.
(g) Includes net unrealized losses on derivatives hedging securities available-for-sale (including terminated hedges) of $1,817 million at June 30, 2020 and $1,650 million at Sept. 30, 2020.
(h) The fair value of available-for-sale securities totaled $107,593 million at Sept. 30, 2020, net of hedges, or 69% of the fair value of the securities portfolio, net of hedges. The fair value of the held-to-maturity securities totaled $47,458 million at Sept. 30, 2020, or 31% of the fair value of the securities portfolio, net of hedges.
(i) Includes unrealized gains of $1,897 million at Sept. 30, 2020 related to available-for-sale securities, net of hedges, and $1,362 million related to held-to-maturity securities.
Note: The amortizable purchase premium (net of discount) relating to securities was $1,917 million at Sept. 30, 2020 and the 3Q20 amortization of that purchase premium was $152 million in 3Q20.


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

	2020																		2019
(dollars in millions)	Sept. 30				June 30				March 31				Dec. 31			Sept. 30
Allowance for credit losses - beginning of period:
Allowance for loan losses	$	302			$	140			$	122			$	127		$	146
Allowance for lending-related commitments	152				148				94				97			95
Allowance for other financial instruments	21			(a)	41			(a)	N/A				N/A			N/A
Allowance for credit losses - beginning of period	$	475			$	329			$	216			$	224		$	241

Impact of adopting ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, effective Jan. 1, 2020	N/A				N/A				(55)			(b)	N/A			N/A

Net recoveries (charge-offs):
Charge-offs	—				—				(1)				(1)			(1)
Recoveries	2				3				—				1			—
Total net recoveries (charge-offs)	2				3				(1)				—			(1)
Provision for credit losses	9			(b)	143			(b)	169			(b)	(8)			(16)
Allowance for credit losses - end of period	$	486			$	475			$	329			$	216		$	224

Allowance for credit losses - end of period:
Allowance for loan losses	$	325			$	302			$	140			$	122		$	127
Allowance for lending-related commitments	135				152				148				94			97
Allowance for other financial instruments	26			(a)	21			(a)	41			(a)	N/A			N/A
Allowance for credit losses - end of period	$	486			$	475			$	329			$	216		$	224

Allowance for loan losses as a percentage of total loans	0.59		%		0.55		%		0.22		%		0.22		%	0.23		%

Nonperforming assets	$	84			$	88			$	88			$	89		$	88
(a) Includes allowance for credit losses on federal funds sold and securities purchased under resale agreements, available-for-sale securities, accounts receivable, cash and due from banks and interest-bearing deposits with banks.
(b) Includes all instruments within the scope of ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments.
N/A - Not applicable.


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. We believe 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 adjusted pre-tax operating margin – Non-GAAP, which is the pre-tax operating margin for the Investment and Wealth Management business net of distribution and servicing expense that was passed to third parties who distribute or service our managed funds. We believe that this measure is useful when evaluating the performance of the Investment and Wealth 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. We believe 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.

Return on common and tangible common equity ratios are annualized.


Return on common equity and tangible common equity reconciliation
(dollars in millions)	3Q20			2Q20			1Q20			4Q19			3Q19			YTD20			YTD19
Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP	$	876		$	901		$	944		$	1,391		$	1,002		$	2,721		$	2,881
Add: Amortization of intangible assets	26			26			26			28			30			78			89
Less: Tax impact of amortization of intangible assets	7			6			6			7			7			19			21
Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets – Non-GAAP	$	895		$	921		$	964		$	1,412		$	1,025		$	2,780		$	2,949

Average common shareholders’ equity	$	39,924		$	38,476		$	37,664		$	37,842		$	37,597		$	38,693		$	37,392
Less: Average goodwill	17,357			17,243			17,311			17,332			17,267			17,304			17,328
Average intangible assets	3,039			3,058			3,089			3,119			3,141			3,062			3,176
Add: Deferred tax liability – tax deductible goodwill	1,132			1,119			1,109			1,098			1,103			1,132			1,103
Deferred tax liability – intangible assets	666			664			666			670			679			666			679
Average tangible common shareholders’ equity – Non-GAAP	$	21,326		$	19,958		$	19,039		$	19,159		$	18,971		$	20,125		$	18,670

Return on common equity – GAAP	8.7		%	9.4		%	10.1		%	14.6		%	10.6		%	9.4		%	10.3		%
Return on tangible common equity – Non-GAAP	16.7		%	18.5		%	20.4		%	29.3		%	21.4		%	18.5		%	21.1		%


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	2020															2019
(dollars in millions, except common shares)	Sept. 30			June 30			March 31			Dec. 31			Sept. 30
BNY Mellon shareholders’ equity at period end – GAAP	$	44,917		$	43,697		$	41,145		$	41,483		$	41,120
Less: Preferred stock	4,532			4,532			3,542			3,542			3,542
BNY Mellon common shareholders’ equity at period end – GAAP	40,385			39,165			37,603			37,941			37,578
Less: Goodwill	17,357			17,253			17,240			17,386			17,248
Intangible assets	3,026			3,045			3,070			3,107			3,124
Add: Deferred tax liability – tax deductible goodwill	1,132			1,119			1,109			1,098			1,103
Deferred tax liability – intangible assets	666			664			666			670			679
BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP	$	21,800		$	20,650		$	19,068		$	19,216		$	18,988

Period-end common shares outstanding (in thousands)	886,136			885,862			885,443			900,683			922,199

Book value per common share – GAAP	$	45.58		$	44.21		$	42.47		$	42.12		$	40.75
Tangible book value per common share – Non-GAAP	$	24.60		$	23.31		$	21.53		$	21.33		$	20.59



Net interest margin reconciliation
(dollars in millions)	3Q20			2Q20			1Q20			4Q19			3Q19
Net interest revenue – GAAP	$	703		$	780		$	814		$	815		$	730
Add: Tax equivalent adjustment	2			2			2			2			3
Net interest revenue (FTE) – Non-GAAP	$	705		$	782		$	816		$	817		$	733

Average interest-earning assets	$	357,634		$	357,562		$	323,936		$	297,987		$	294,154

Net interest margin – GAAP (a)	0.79		%	0.88		%	1.01		%	1.09		%	0.99		%
Net interest margin (FTE) – Non-GAAP (a)	0.79		%	0.88		%	1.01		%	1.09		%	1.00		%
(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 and Wealth Management business
(dollars in millions)	3Q20			2Q20			1Q20			4Q19			3Q19			YTD20			YTD19
Income before income taxes – GAAP	$	245		$	221		$	194		$	240		$	295		$	660		$	821

Total revenue – GAAP	$	918		$	886		$	898		$	971		$	887		$	2,702		$	2,736
Less: Distribution and servicing expense	85			86			91			93			98			262			283
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP	$	833		$	800		$	807		$	878		$	789		$	2,440		$	2,453

Pre-tax operating margin – GAAP (a)	27		%	25		%	22		%	25		%	33		%	24		%	30		%
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a)	29		%	28		%	24		%	27		%	37		%	27		%	33		%
(a) Income before income taxes divided by total revenue.



Constant currency reconciliations							3Q20 vs.
(dollars in millions)	3Q20			3Q19			3Q19
Consolidated:
Investment management and performance fees – GAAP	$	835		$	832		—		%
Impact of changes in foreign currency exchange rates	—			11
Adjusted investment management and performance fees – Non-GAAP	$	835		$	843		(1)		%


Investment and Wealth Management business:
Investment management and performance fees – GAAP	$	835		$	832		—		%
Impact of changes in foreign currency exchange rates	—			11
Adjusted investment management and performance fees – Non-GAAP	$	835		$	843		(1)		%

Third Quarter 2020 Financial Highlights October 16, 2020

3Q20 Financial Highlights Revenue EPS › Revenue relatively flat year-over-year despite low rate $3.85 billion $0.98 environment and associated money market fee waivers › Both Investment Services (“IS”) and Investment and Wealth Management (“I&WM”) benefited from market Pre-tax income Pre-tax margin appreciation, robust client activity and higher balances across businesses $1.16 billion 30% › Provision for credit losses of $9 million; no net charge- offs and stable nonperforming assets › Returned $0.3 billion to common shareholders in Returns Capital ratios dividends › Accreting substantial capital with increases in both ROE: 8.7% CET1: 13.0% ROTCE: 16.7%(a) Tier 1 Leverage: 6.5% CET1 and Tier 1 Leverage ratios (a) Represents a non-GAAP measure. See page 17 for corresponding reconciliation of ROTCE. 2 Third Quarter 2020 – Financial Highlights

3Q20 Key Financial Trends I S r e v e n u e I&WM revenue Noninterest expense ($ millions) ($ millions) ($ millions) 3% of increase (4)% driven by 3Q19 tax-related +4% +3% reserve reduction 3,057 3,107 2,927 2,590 2,686 2,681 Net interest 761 768 681 887 886 918 revenue Net interest 47 revenue 49 48 Total fee and 2,296 2,339 Total fee and 871 other revenue 2,246 other revenue 838 838 3Q19 2Q20 3Q20 3Q19 2Q20 3Q20 3Q19 2Q20 3Q20 (a) P r e - t a x i n c o m e EPS ROTCE / ROE ($ millions) ($) (%) (472) bps (10)% (8)% 1,287 1,181 50 1.07 21.4 1,157 45 1.01 0.98 18.5 20 33% 40 16.7 29% 30% 35 15 30 10.6 9.4 Pre-tax 25 8.7 10 operating 20 ROE 15 margin 10 5 5 0 0 3Q19 2Q20 3Q20 3Q19 2Q20 3Q20 3Q19 2Q20 3Q20 (a) Represents a non-GAAP measure. See page 17 for corresponding reconciliation of ROTCE. 3 Third Quarter 2020 – Financial Highlights

3Q20 Financial Highlights ($ millions, except per share data) 3 Q 2 0 2 Q 2 0 3 Q 1 9 TOTAL REVENUE $3,847 (4)% -% Fee revenue 3,108 (2) (1) Net interest revenue 703 (10) (4) Provision for credit losses 9 N/M N/M Noninterest expense 2,681 - 4 Income before income taxes 1,157 (2) (10) Net income applicable to common shareholders $876 (3)% (13)% EARNINGS PER COMMON SHARE $0.98 (3)% (8)% Operating leverage (a) (388) bps (388) bps Pre-tax operating margin 30% 63 bps (324) bps Return on common equity (annualized) 8.7% (69) bps (185) bps Return on tangible common equity – non-GAAP (annualized) (b) 16.7% (184) bps (472) bps Notable items impacting 3Q19 Increase / (decrease) Revenue Expense EPS › 3Q19 included a lease-related impairment which negatively impacted 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 Note: See page 15 in the Appendix for corresponding footnotes. 4 Third Quarter 2020 – Financial Highlights

Capital and Liquidity 3 Q 20 2 Q 20 3 Q 19 Consolidated regulatory capital ratios: (a) Common Equity Tier 1 (“CET1”) ratio 13.0% 12.6% 11.1% Tier 1 capital ratio 15.7 15.4 13.2 Total capital ratio 16.6 16.3 14.0 Tier 1 leverage ratio 6.5 6.2 6.5 (b) (b) Supplementary leverage ratio (“SLR“) 8.5 8.2 6.0 Average liquidity coverage ratio (“LCR“) 111% 112% 117% Book value per common share $45.58 $44.21 $40.75 Tangible book value per common share – non-GAAP (c) $24.60 $23.31 $20.59 Cash dividends per common share $0.31 $0.31 $0.31 Common shares outstanding (thousands) 886,136 885,862 922,199 Note: See page 15 in the Appendix for corresponding footnotes. 5 Third Quarter 2020 – Financial Highlights

Net Interest Revenue DRIVERS OF SEQUENTIAL NIR CHANGE USD LIBOR AVERAGE ($ millions) (%) 0.61 (10)% 0.36 0.25 0.16 780 + Benefit of + Day + Benefit of 1m 3m higher count, lower 703 securities hedging funding - Impact of US TREASURY AVERAGE balances and other and lower (%) and deposit 0.68 interest balance rates rates on sheet mix 0.64 interest- 0.35 earning 0.19 0.27 assets 0.14 2Y 5Y 10Y 2Q20 3Q20 2Q20 3Q20 6 Third Quarter 2020 – Financial Highlights

Balance Sheet Trends (a) AVERAGE DEPOSITS AVERAGE SECURITIES ($ billions) ($ billions) +23% (1)% +29% 283 279 +6% 180 5 226 164 160 155 4.5 33 0.98% 140 4 127 32 211 212 3.5 120(b) Non-HQLA 22 3 100 Interest-bearing 2.25% 2.5 deposits 177 (0.03)% 80 (0.05)% 2 60 1.50% 1.28% 1.5 40 High Quality 1 Noninterest-bearing 72 68 105 123 130 Liquid Assets (“HQLA”)20 0.5 deposits 49 0 0 3Q19 2Q20 3Q20 3Q19 2Q20 3Q20 Interest-bearing deposits rate Average securities portfolio rate Note: May not foot due to rounding. (a) Average securities include trading securities which are primarily non-HQLA. Excluding these, non-HQLA securities were $16 billion, $26 billion and $26 billion in 3Q19, 2Q20 and 3Q20, respectively. (b) Non-HQLA in 2Q20 included approximately $4 billion of CP and CDs purchased from money market funds, majority of which has since matured. 7 Third Quarter 2020 – Financial Highlights

Credit Risk Profile › Well collateralized with assets under custody AVERAGE INTEREST - EARNING ASSETS ($ billions) › $1.0bn services and other; $0.7bn manufacturing; $0.2bn +22% energy and utilities › 93% exposure is investment grade -% (a) › 75% secured loans, predominantly office and residential 358 358 LOANS › Unsecured consists of predominantly investment grade ( $ 5 5 b n ) 57 54 REITs and real estate operating companies 294 › Concentrated in NY Metro area Overdrafts and other 12% Loans 51 Commercial 4% CRE 11% › Mostly secured, 95% exposure is investment grade; 89% 155 164 due <1 year › $6.1bn banks; $2.8bn securities industry Securities 127 Financial institutions 20% › Collateralized with marketable securities in excess of 100% Margin loans 24% of loan value Cash/ 146 140 116 Wealth management & › Secured by marketable securities and/or residential property Reverse repo 29% Other residential mtges › Net recoveries; limited forbearance requests 3Q19 2Q20 3Q20 3Q20 (a) Preliminary data as of 9/30/20. May not foot due to rounding. 8 Third Quarter 2020 – Financial Highlights

Noninterest Expense ($ millions) 3 Q 2 0 2 Q 20 3 Q 19 › Noninterest expenses up 4% year-over-year, 3% of Staff $1,466 -% (1)% which was driven by the 3Q19 tax-related reserve reduction Professional, legal and other purchased services 355 5 12 Software and equipment 340 (1) 10 › The remainder of the increase primarily reflects continued investments in technology, higher Net occupancy 136 (1) (1) professional, legal and other purchased services Sub-custodian and clearing 119 (1) 7 expense and the unfavorable impact of a weaker Distribution and servicing 85 - (12) U.S. dollar, partially offset by lower staff and Bank assessment charges 30 (14) (3) business development expenses Business development 17 (15) (64) › Technology expenses are included in staff, software Amortization of intangible assets 26 - (13) and .equipment and professional, legal and other purchased services Other 107 (9) 234 Total noninterest expense $2,681 -% 4% 9 Third Quarter 2020 – Financial Highlights

Investment Services FINANCIAL HIGHLIGHTS 3 Q 2 0 ($ millions unless otherwise noted) 2 Q 2 0 3 Q 1 9 › Asset Servicing down year-over-year primarily on lower Total revenue by line of business: interest rates, partially offset by higher client deposits and Asset Servicing $1,354 (7)% (4)% client volumes Pershing 538 (7) (6) Issuer Services 435 1 (7) › Pershing down primarily on the impact of rate-driven Treasury Services 323 (5) 4 money market fee waivers, partially offset by higher Clearance and Collateral Management 277 (6) (5) Total revenue 2,927 (6) (4) money market balances Provision for credit losses (10) N/M N/M Noninterest expense 2,020 2 2 › Issuer Services down primarily on lower Depositary Income before taxes $917 (6)% (17)% Receipts revenue Pre-tax operating margin 31% - bp (463) bps KEY METRICS › Treasury Services up primarily on higher client deposits and money market balances Foreign exchange and other trading revenue $146 (18)% (9)% Securities lending revenue 37 (27) (5) › Clearance and Collateral Management down primarily on Average loans 40,308 (7) 9 Average deposits 263,621 (2) 27 lower investment income due to the 4Q19 sale of an equity investment AUC/A at period end (tr) (a) 38.6 3 8 Market value of securities on loan at period end (bn) (b) 378 (2) 4 Pershing › AUC/A of $38.6 trillion up primarily on higher market Net new assets (U.S. platform) (bn) (c) $12 N/M N/M values, net new business, higher client inflows and the Average active clearing accounts (U.S. platform) (thousands) 6,556 1 4 favorable impact of a weaker U.S. dollar Clearance and Collateral Management Average tri-party collateral mgmt. balances (tr) $3.4 (4)% (4)% Note: See page 15 in the Appendix for corresponding footnotes. 10 Third Quarter 2020 – Financial Highlights

Investment Services - Revenue Drivers ($ millions) (4)% (6)% (7)% 1,411 1,354 +4% 575 (5)% 538 466 435 312 323 293 277 3Q19 3Q20 3Q19 3Q20 3Q19 3Q20 3Q19 3Q20 3Q19 3Q20 A S S E T I S S U E R T R E A S U R Y CLEARANCE AND SERVICING PERSHING SERVICES SERVICES COLLATERAL - Interest rates - Money market fee - Depositary Receipts + Deposit balances - Equity investment income – + Client volumes waivers dividend fees + Liquidity services investment sold in 4Q19 + AUC/A + Money market balances + Corporate Trust new - Interest rates - Clearance volumes + Deposit balances + Clearing volumes business + Non-U.S. average tri-party + Liquidity services repo balances + Deposit balances Note: Graphs not to scale. 11 Third Quarter 2020 – Financial Highlights

Investment and Wealth Management FINANCIAL HIGHLIGHTS 3 Q 2 0 ($ millions unless otherwise noted) 2 Q 2 0 3 Q 1 9 › Investment Management up year-over-year primarily on the impact of hedging activities in 3Q19, higher market Total revenue by line of business: Investment Management $641 3% 5% values, the favorable impact of a weaker U.S. dollar and Wealth Management 277 5 (1) higher performance fees, partially offset by the impact Total revenue 918 4 3 Provision for credit losses 12 N/M N/M of money market fee waivers Noninterest expense 661 - 12 Income before taxes $245 11% (17)% › Wealth Management down primarily on lower net Pre-tax operating margin 27% 166 bps (671) bps interest revenue and a shift to lower fee investment Adjusted pre-tax operating margin – non-GAAP (a) 29% 171 bps (814) bps products, partially offset by higher market values KEY METRICS › Noninterest expense up primarily on the net reduction of Average loans $11,503 (2)% (4)% reserves for tax-related exposure for certain investment Average deposits 17,570 - 25 Wealth Management client assets (bn) (b) 265 4 2 management funds in 3Q19 CHANGES IN AUM (bn)(C) 3 Q 2 0 2 Q 2 0 3 Q 1 9 › AUM of $2.0 trillion up primarily on higher market Beginning balance $1,961 $1,796 $1,843 values, the favorable impact of a weaker U.S. dollar and Equity (4) (2) (4) net inflows Fixed income 1 4 2 Liability-driven investments 14 (2) (4) Multi-asset and alternatives investments (3) - (1) Index (3) 9 (3) Cash (10) 11 11 Total net (outflows) inflows (5) 20 1 Net market impact 41 143 66 Net currency impact 44 2 (29) Ending balance $2,041 $1,961 $1,881 Note: See page 15 in the Appendix for corresponding footnotes. 12 Third Quarter 2020 – Financial Highlights

Other Segment FINANCIAL HIGHLIGHTS 3 Q 2 0 › Fee revenue increased year-over-year primarily reflecting ($ millions unless otherwise noted) 2 Q 2 0 3 Q 1 9 higher corporate treasury activity and equity investment Fee revenue (loss) $11 $29 $(5) Net securities gains (losses) 9 9 (1) income Total fee and other revenue (loss) 20 38 (6) Net interest (expense) (25) (36) (80) › Net interest expense decreased year-over-year primarily Total (loss) revenue (5) 2 (86) reflecting the lease-related impairment of $70 million Provision for credit losses 7 (9) (1) recorded in 3Q19 and corporate treasury activity Noninterest expense - 39 25 (Loss) before taxes $(12) $(28) $(110) › Noninterest expense decreased year-over-year reflecting lower staff expense 13 Third Quarter 2020 – Financial Highlights

Appendix

Footnotes 3Q20 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) See page 17 for corresponding reconciliation of this non-GAAP measure. Capital and Liquidity, Page 5 (a) Regulatory capital ratios for September 30, 2020, 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 presented was the Advanced Approaches. (b) Reflects the application of a new rule effective April 1, 2020, to exclude certain central bank placements. Also effective on April 1, 2020 was the temporary exclusion of U.S. Treasury securities from the leverage exposure used in the SLR calculation which increased our consolidated SLR by 78 basis points at Sept. 30, 2020 and 40 basis points at June 30, 2020. (c) Tangible book value per common share – non-GAAP – excludes goodwill and intangible assets, net of deferred tax liabilities. See page 17 for corresponding reconciliation of this non-GAAP measure. Investment Services, Page 10 (a) Current period is preliminary. Consists of AUC/A primarily from the Asset Servicing business and, to a lesser extent, the Clearance and Collateral Management, Issuer Services, Pershing and Wealth Management businesses. Includes the AUC/A of CIBC Mellon Global Securities Services Company (“CIBC Mellon”), a joint venture with the Canadian Imperial Bank of Commerce, of $1.4 trillion at September 30, 2020, $1.3 trillion at June 30, 2020 and $1.4 trillion at September 30, 2019. (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 $62 billion at September 30, 2020 and June 30, 2020 and $66 billion at September 30, 2019. (c) Net new assets represents net flows of assets (e.g., net cash deposits and net securities transfers) in customer accounts in Pershing LLC, a U.S. broker-dealer. Investment and Wealth Management, Page 12 (a) Net of distribution and servicing expense. See page 18 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. 15 Third Quarter 2020 – Financial Highlights

Money Market Fee Waiver Impact ($ millions) 3 Q 20 2 Q 20 1 Q 20 Y T D 2 0 Investment services fees: Asset servicing fees $(1) $ - $ - $(1) Clearing services fees (57) (50) (9) (116) Issuer services fees (1) (1) - (2) Treasury services fees (3) (2) - (5) Total investment services fees (62) (53) (9) (124) Investment management and performance fees (42) (30) (14) (86) Distribution and servicing revenue (6) (3) - (9) Total fee and other revenue (110) (86) (23) (219) Less: Distribution and servicing expense 9 7 - 16 Net impact of money market fee waivers $(101) $(79) $(23) $(203) Impact to revenue by line of business: (a) Asset Servicing $(4) $(1) $ - $(5) Pershing (73) (60) (9) (142) Issuer Services (2) (1) - (3) Treasury Services (1) - - (1) Investment Management (28) (24) (14) (66) Wealth Management (2) - - (2) Total impact to revenue by line of business $(110) $(86) $(23) $(219) (a) The line of business revenue for management reporting purposes reflects the impact of revenue transferred between the businesses. 16 Third Quarter 2020 – Financial Highlights

Return on Common Equity and Tangible Common Equity Reconciliation ($ millions) 3 Q 20 2 Q 20 3 Q19 Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP $876 $901 $1,002 Add: Amortization of intangible assets 26 26 30 Less: Tax impact of amortization of intangible assets 7 6 7 Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding $895 $921 $1,025 amortization of intangible assets – non-GAAP Average common shareholders’ equity $39,924 $38,476 $37,597 Less: Average goodwill 17,357 17,243 17,267 Average intangible assets 3,039 3,058 3,141 Add: Deferred tax liability – tax deductible goodwill 1,132 1,119 1,103 Deferred tax liability – intangible assets 666 664 679 Average tangible common shareholders’ equity – non-GAAP $21,326 $19,958 $18,971 Return on common equity (annualized) – GAAP 8.7% 9.4% 10.6% Return on tangible common equity (annualized) – non-GAAP 16.7% 18.5% 21.4% Book Value and Tangible Book Value Per Common Share Reconciliation ($ millions, except common shares) September 30, 2020 June 30, 2020 September 30, 2019 BNY Mellon shareholders’ equity at period end – GAAP $44,917 $43,697 $41,120 Less: Preferred stock 4,532 4,532 3,542 BNY Mellon common shareholders’ equity at period end – GAAP 40,385 39,165 37,578 Less: Goodwill 17,357 17,253 17,248 Intangible assets 3,026 3,045 3,124 Add: Deferred tax liability – tax deductible goodwill 1,132 1,119 1,103 Deferred tax liability – intangible assets 666 664 679 BNY Mellon tangible common shareholders’ equity at period end – non-GAAP $21,800 $20,650 $18,988 Period-end common shares outstanding (in thousands) 886,136 885,862 922,199 Book value per common share – GAAP $45.58 $44.21 $40.75 Tangible book value per common share – non-GAAP $24.60 $23.31 $20.59 17 Third Quarter 2020 – Financial Highlights

Pre-tax Operating Margin Reconciliation – Investment and Wealth Management Business ($ millions) 3 Q 20 2 Q 20 3 Q19 Income before income taxes – GAAP $245 $221 $295 Total revenue – GAAP $918 $886 $887 Less: Distribution and servicing expense 85 86 98 Adjusted total revenue, net of distribution and servicing expense – non-GAAP $833 $800 $789 Pre-tax operating margin – GAAP (a) 27% 25% 33% Adjusted pre-tax operating margin, net of distribution and servicing expense – non-GAAP (a) 29% 28% 37% (a) Income before income taxes divided by total revenue. 18 Third Quarter 2020 – Financial Highlights

Cautionary Statement A number of statements in The Bank of New York Mellon Corporation’s (the “Corporation”) 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”, “potentially”, “outlook” and words of similar meaning may signify forward-looking statements. These statements relate to, among other things, the Corporation’s 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, money market fee waivers, 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, focus and initiatives, including the potential effects of the coronavirus pandemic on any of the foregoing. 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 a number of factors, including, but not limited to, those discussed in “Risk Factors” in the Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 (the “Second Quarter 2020 Form 10-Q”) and the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Annual Report”) and in other filings of the Corporation with the Securities and Exchange Commission (the “SEC”). Statements about the effects of the current and near-term market and macroeconomic outlook on the Corporation, including on its business, operations, financial performance and prospects, may constitute forward-looking statements, and 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), including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on the Corporation, its clients, customers and third parties. Preliminary business metrics and regulatory capital ratios are subject to change, possibly materially, as the Corporation completes its Form 10-Q for the third quarter of 2020. All forward- looking statements speak only as of October 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 certain 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 the Corporation’s management monitors financial performance. Additional disclosures relating to non-GAAP measures are contained in the Corporation’s reports filed with the SEC, including the Second Quarter 2020 Form 10-Q and the 2019 Annual Report, and are available at www.bnymellon.com/investorrelations. 19 Third Quarter 2020 – Financial Highlights

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