Bank of New York Mellon Corp - FORM 8-K - EX-99.3

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EX-99.1 - EX-99.1 - Bank of New York Mellon Corp	d753044dex991.htm
EX-99.2 - EX-99.2 - Bank of New York Mellon Corp	d753044dex992.htm
8-K - FORM 8-K - Bank of New York Mellon Corp	d753044d8k.htm
EX-99.4 - EX-99.4 - Bank of New York Mellon Corp	d753044dex994.htm

Exhibit 99.3

THE BANK OF NEW YORK MELLON CORPORATION

Quarterly Financial Trends

July 18, 2014

Notes:

The following transactions/changes have impacted the reporting of our results:

In the first quarter of 2014, prior periods were restated to reflect the retrospective application of adopting new accounting guidance related to our investments in qualified affordable housing projects (ASU 2014-01).

In the first quarter of 2014, results of Newton’s private client business were reclassified from the Investment Management business to the Other segment. Newton’s private client business was sold in September 2013.

Restructuring charges in the second quarter of 2014 represent corporate initiatives and were recorded in the Other segment. In the fourth quarter of 2013, restructuring charges were recorded in the businesses. Prior to the fourth quarter of 2013, all restructuring charges were reported in the Other segment.

In the first quarter of 2013, incentive expense related to restricted stock and certain corporate overhead charges were allocated to Investment Management and Investment Services businesses which were previously included in the Other segment. All prior periods were restated to reflect these changes.

In the first quarter of 2012, we reclassified the results of the Shareowner Services business from the Investment Services business to the Other segment. The reclassification did not impact the consolidated results. All prior periods have been restated.

The following items have impacted the comparability of our results:

The second quarter of 2014 includes charges related to investment management funds and severance.

The fourth quarter of 2013 includes a loss related to an equity investment.

The third quarter of 2013 includes a benefit related to the U.S. Tax Court’s partial reconsideration of a tax decision disallowing certain foreign tax credits.

The second quarter of 2013 includes a gain related to an equity investment.

The first quarter of 2013 includes a tax charge related to the disallowance of certain foreign tax credits.

The second quarter of 2012 includes a charge related to the settlement of the Sigma class action lawsuit.

All of these items are detailed in the trends that follow.

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

Average Assets:

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:

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

Non-GAAP Measures:

Certain Non-GAAP measures are included in the following schedules. These measures are used by management to monitor financial performance, both on a company-wide and on a business basis. These Non-GAAP measures impact certain revenue/expense categories, percentages and ratios by the exclusion and/or adjustment of items listed above and described in footnotes. For further information, see ‘Supplemental information - Explanation of GAAP and Non-GAAP Financial Measures’ in The Bank of New York Mellon Corporation’s Quarterly Earnings Review dated July 18, 2014, for the second quarter of 2014 (the “Quarterly Earnings Review”), furnished as an exhibit to the Current Report on Form 8-K to which these Quarterly Financial Trends are furnished as an exhibit (the “Form 8-K”).

Summations may not equal due to rounding. As a result of our rounding convention and reclassifications noted above, differences may exist between the business trends data versus business data in the Form 10-K for the year ended December 31, 2013 or other reports filed with the SEC.

Page 1 of 14

THE BANK OF NEW YORK MELLON CORPORATION

10 Quarter Trend


	2012												2013												2014
(dollar amounts in millions unless otherwise noted)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr
Revenue:
Investment services fees
Asset servicing	$	943		$	950		$	942		$	945		$	969		$	988		$	964		$	984		$	1,009		$	1,022
Issuer services		251			275			311			215			237			294			322			237			229			231
Clearing services		303			309			287			294			304			321			315			324			325			326
Treasury services		136			134			138			141			141			139			137			137			136			141

Total investment services fees		1,633			1,668			1,678			1,595			1,651			1,742			1,738			1,682			1,699			1,720
Investment management and performance fees		745			797			779			853			822			848			821			904			843			883
Foreign exchange & other trading revenue		191			180			182			139			161			207			160			146			136			130
Distribution and servicing		46			46			48			52			49			45			43			43			43			43
Financing-related fees		44			37			46			45			41			44			44			43			38			44
Investment and other income (a)		152			61			137			132			88			285			151			(43	)		102			142

Total fee revenue (a)		2,811			2,789			2,870			2,816			2,812			3,171			2,957			2,775			2,861			2,962
Net securities gains (losses)		40			50			22			50			48			32			22			39			22			18

Total fee and other revenue (a)		2,851			2,839			2,892			2,866			2,860			3,203			2,979			2,814			2,883			2,980
Income (loss) of consolidated investment management funds		43			57			47			42			50			65			32			36			36			46
Net interest revenue		765			734			749			725			719			757			772			761			728			719

Total revenue (a)		3,659			3,630			3,688			3,633			3,629			4,025			3,783			3,611			3,647			3,745
Provision for credit losses		5			(19	)		(5	)		(61	)		(24	)		(19	)		2			6			(18	)		(12	)
Noninterest expenses		2,551			2,572			2,584			2,683			2,703			2,716			2,682			2,793			2,676			2,749
Amortization of intangible assets		96			97			95			96			86			93			81			82			75			75
Merger & integration, litigation and restructuring charges		109			378			26			46			39			13			16			2			(12	)		122

Total noninterest expense		2,756			3,047			2,705			2,825			2,828			2,822			2,779			2,877			2,739			2,946
Income (loss) from continuing operations before taxes (a)		898			602			988			869			825			1,222			1,002			728			926			811
Provision for income taxes		269			106			239			228			1,062			339			19			172			232			217

Net income (loss) from continuing operations (a)		629			496			749			641			(237	)		883			983			556			694			594
Net income (loss) attributable to noncontrolling interest		(12	)		(30	)		(25	)		(11	)		(16	)		(40	)		(8	)		(17	)		(20	)		(17	)
Preferred stock dividends		—			—			(5	)		(13	)		(13	)		(12	)		(13	)		(26	)		(13	)		(23	)

Net income (loss) applicable to common shareholders of The Bank of New York Mellon Corporation (a)	$	617		$	466		$	719		$	617		$	(266	)	$	831		$	962		$	513		$	661		$	554


Earnings Per Share (a)(b)	$	0.51		$	0.39		$	0.61		$	0.52		$	(0.23	)	$	0.71		$	0.82		$	0.44		$	0.57		$	0.48

Assets under management at period-end (in billions) (c)	$	1,302		$	1,293		$	1,353		$	1,380		$	1,423		$	1,427		$	1,532		$	1,583		$	1,620		$	1,636	(d)
Assets under custody and/or administration at period-end (in trillions) (e)	$	25.7		$	25.2		$	26.4		$	26.3		$	26.3		$	26.2		$	27.4		$	27.6		$	27.9		$	28.5	(d)

Market value of securities on loan at period-end (in billions) (f)	$	256		$	267		$	251		$	237		$	244		$	255		$	255		$	235		$	264		$	280

Pre-tax operating margin
GAAP		24	%		16	%		27	%		24	%		23	%		30	%		26	%		20	%		25	%		22	%
Non-GAAP (g)		30	%		29	%		30	%		28	%		26	%		32	%		29	%		22	%		27	%		30	%

Return on common equity (annualized)
GAAP		7.4	%		5.5	%		8.3	%		7.1	%		N/M			9.7	%		11.1	%		5.7	%		7.4	%		6.1	%
Return on tangible common equity (annualized):
Non-GAAP		21.0	%		15.7	%		22.1	%		18.8	%		N/M			25.0	%		28.3	%		14.3	%		17.6	%		14.5	%
Percent of non-US fee and net interest revenue - GAAP		36	%		37	%		37	%		35	%		35	%		36	%		38	%		38	%		36	%		38	%
Percent of non-US fee and net interest revenue - Non-GAAP (h)		37	%		37	%		37	%		36	%		35	%		36	%		38	%		39	%		37	%		38	%

(a)

In the 1st quarter 2014, prior periods were restated to reflect the retrospective application of adopting new accounting guidance related to our investments in qualified affordable housing projects (ASU 2014-01). See page 10 of the Quarterly Earnings Release dated July 18, 2014 attached as an exhibit to the Form 8-K.

(b)

The 2nd quarter 2012 includes $0.18 of litigation expense. The 1st quarter 2013 includes a $0.73 charge related to the disallowance of certain foreign tax credits. The 2nd quarter 2013 includes a $0.09 gain related to an equity investment.

The 3rd quarter 2013 includes a $0.22 benefit related to the U.S. Tax Court’s partial reconsideration of a tax decision disallowing certain foreign tax credits. The 4th quarter 2013 includes a $0.10 loss related to an equity investment.

The 2nd quarter 2014 includes a $0.14 charge related to severance and certain investment management funds.

(c)

Excludes securities lending cash management assets and assets managed in the Investment Services business. Also excludes assets under management related to Newton’s private client business that was sold in September 2013.

(d)

Preliminary.

(e)

Includes the AUC/A of CIBC Mellon Global Securities Services Company (“CIBC Mellon”), a joint venture with the Canadian Imperial Bank of Commerce, of $1.2 trillion at March 31, 2012, June 30, 2012 and Sept. 30, 2012, $1.1 trillion at Dec. 31, 2012, $1.2 trillion at March 31, 2013, $1.1 trillion at June 30, 2013, and $1.2 trillion at Sept. 30, 2013, Dec. 31, 2013, March 31, 2014, and June 30, 2014.

(f)

Represents the total amount of securities on loan managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent, beginning in the fourth quarter of 2013, on behalf of CIBC Mellon clients, which totaled $62 billion at Dec. 31, 2013, $66 billion at March 31, 2014 and $64 billion at June 30, 2014.

(g)

Non-GAAP excludes M&I, litigation and restructuring charges, a charge (recovery) related to investment management funds and the amortization of intangible assets.

(h)

Includes fee revenue, net interest revenue and income from consolidated investment management funds, net of net income attributable to noncontrolling interests.

Note: See pages 3 through 6 for additional details of revenue/expense items impacting consolidated results.

N/M - Not meaningful

Page 2 of 14

THE BANK OF NEW YORK MELLON CORPORATION

FEE AND OTHER REVENUE - 10 Quarter Trend

2012

2013

2014

(dollar amounts in millions unless otherwise noted)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

1st Qtr

2nd Qtr

Investment services fees:

Asset servicing

894

891

893

904

930

938

929

953

971

976

Securities lending

Issuer services

251

275

311

215

237

294

322

237

229

231

Clearing services

303

309

287

294

304

321

315

324

325

326

Treasury services

136

134

138

141

139

137

136

141

Total investment services fees

1,633

1,668

1,678

1,595

1,651

1,742

1,738

1,682

1,699

1,720

Investment management and performance fees

745

797

779

853

822

848

821

904

843

883

Foreign exchange and other trading revenue

191

180

182

139

161

207

160

146

136

130

Distribution and servicing

Financing-related fees

Investment and other income

152

137

132

285

151

(43

)

102

142

Total fee revenue

2,811

2,789

2,870

2,816

2,812

3,171

2,957

2,775

2,861

2,962

Net securities gains (losses)

Total fee and other revenue - Non-GAAP

2,851

2,839

2,892

2,866

2,860

3,203

2,979

2,814

2,883

2,980

Fee and other revenue as a percentage of total revenue - excluding net securities gains

Assets under management at period-end
(in billions) (a)

1,302

1,293

1,353

1,380

1,423

1,427

1,532

1,583

1,620

1,636

(b)

Assets under custody and/or administration at period-end (in trillions) (c)

25.7

25.2

26.4

26.3

26.2

27.4

27.6

27.9

28.5

(b)

Market value of securities on loan at period-end
(in billions) (d)

256

267

251

237

244

255

235

264

280

S&P 500 Index - period-end

1408

1362

1441

1426

1569

1606

1682

1848

1872

1960

S&P 500 Index - daily average

1349

1350

1401

1418

1514

1609

1675

1769

1835

1900

(a)

(b)

Preliminary.

(c)

Includes the AUC/A of CIBC Mellon Global Securities Services Company (“CIBC Mellon”), a joint venture with the Canadian Imperial Bank of Commerce, of $1.2 trillion at March 31, 2012, June 30, 2012 and Sept. 30, 2012, $1.1 trillion at Dec. 31, 2012, $1.2 trillion at March 31, 2013, $1.1 trillion at June 30, 2013 and $1.2 trillion at Sept. 30, 2013, Dec. 31, 2013, March 31, 2014, and June 30, 2014.

(d)

Page 3 of 14

THE BANK OF NEW YORK MELLON CORPORATION

Average Balances and Interest Rates

2012

2013

March 31

June 30

September 30

December 31

March 31

(dollar amounts in millions)

Average
balance

Average
rates

Average
balance

Average
rates

Average
balance

Average
rates

Average
balance

Average
rates

Average
balance

Average
rates

Assets

Interest-earning assets:

Interest-bearing deposits with banks (primarily foreign)

35,095

1.30

38,474

0.98

41,201

0.96

41,018

0.80

40,967

0.70

Interest-bearing deposits with Federal Reserve & other central banks

63,526

0.27

57,904

0.27

61,849

0.21

71,794

0.21

63,240

0.20

Federal funds sold and securities purchased under resale agreements

5,174

0.73

5,493

0.62

5,315

0.64

5,984

0.56

7,478

0.54

Margin loans

12,901

1.29

13,331

1.27

13,033

1.30

13,085

1.26

13,346

1.17

Non-margin loans:

Domestic offices

20,128

2.46

19,663

2.52

18,821

2.62

20,560

2.42

21,358

2.38

Foreign offices

10,180

1.77

9,998

1.86

10,574

1.61

9,968

1.64

11,575

1.36

Total non-margin loans

30,308

2.23

29,661

2.30

29,395

2.26

30,528

2.16

32,933

2.02

Securities

U.S. government obligations

17,268

1.56

15,387

1.65

18,917

1.39

19,915

1.39

18,814

1.54

U.S. government agency obligations

32,347

2.44

39,070

2.23

41,430

1.94

41,361

1.94

42,397

1.85

Obligations of states and political subdivisions

3,354

2.97

4,777

2.65

5,933

2.57

6,154

2.52

6,194

2.38

Other securities

33,839

2.84

32,625

2.51

33,724

2.51

35,082

2.04

34,507

2.03

Trading securities

2,519

2.78

3,033

2.57

4,431

2.40

5,294

2.54

5,878

2.40

Total securities

89,327

2.45

94,892

2.25

104,435

2.06

107,806

1.90

107,790

1.91

Total interest-earning assets

236,331

1.56

239,755

1.48

255,228

1.40

270,215

1.27

265,754

1.26

Allowance for loan losses

(392

)

(382

)

(361

)

(337

)

(264

)

Cash and due from banks

4,271

4,412

4,277

4,284

4,534

Other assets

49,690

49,933

48,775

50,439

52,137

Total Asset Consol VIE FAS 167

11,444

11,284

10,995

11,394

11,503

Total Assets

301,344

305,002

318,914

335,995

333,664

Liabilities and total equity

Interest-bearing liabilities:

Money market rate accounts and demand deposit accounts

4,446

0.28

8,421

0.24

9,724

0.16

8,570

0.18

8,778

0.19

Savings

704

0.10

702

0.13

730

0.17

815

0.29

819

0.29

Other time deposits

33,618

0.08

33,180

0.11

34,193

0.07

38,085

0.06

39,091

0.05

Foreign offices

86,670

0.15

88,179

0.13

93,613

0.10

95,249

0.09

99,040

0.08

Total interest-bearing deposits

125,438

0.14

130,482

0.13

138,260

0.10

142,719

0.09

147,728

0.08

Federal funds purchased and securities sold under repurchase agreements

8,584

(0.02

)

11,254

0.01

10,092

(0.06

)

10,158

0.07

9,187

(0.12

)

Trading Liabilities

1,153

1.55

1,256

1.87

1,397

1.87

1,943

1.41

2,552

1.35

Other borrowed funds

2,579

0.79

2,550

0.99

1,855

0.72

1,869

1.29

1,397

0.76

Payables to customers and broker-dealers

7,555

0.11

7,895

0.10

8,141

0.10

8,532

0.09

9,019

0.09

Long-term debt

20,538

1.79

20,084

1.67

19,535

1.66

19,259

1.46

18,878

1.18

Total interest-bearing liabilities

165,847

0.34

173,521

0.32

179,280

0.28

184,480

0.25

188,761

0.20

Total noninterest-bearing deposits

66,613

62,860

70,230

79,987

70,337

Other liabilities

24,248

23,588

23,712

24,458

27,416

VIE Liabilities & Obligations FAS 167

10,159

10,072

9,686

10,114

10,186

Total Shareholders’ Equity

33,718

34,123

34,522

36,028

35,966

Noncontrolling interest

759

838

1,484

928

998

Total liabilities and shareholders’ equity

301,344

305,002

318,914

335,995

333,664

Net interest margin - Taxable equivalent basis

1.32

1.25

1.20

1.09

1.11

Note: Interest and average rates were calculated on a taxable equivalent basis, at tax rates of approximately 35%, using dollar amounts in thousands and the actual number of days in the year.

Page 4 of 14

THE BANK OF NEW YORK MELLON CORPORATION

Average Balances and Interest Rates (continued)

2013

2014

June 30

September 30

December 31

March 31

June 30

(dollar amounts in millions)

Average
balance

Average
rates

Average
balance

Average
rates

Average
balance

Average
rates

Average
balance

Average
rates

Average
balance

Average
rates

Assets

Interest-earning assets:

Interest-bearing deposits with banks (primarily foreign)

42,772

0.64

41,597

0.66

39,563

0.71

41,617

0.71

41,424

0.74

Interest-bearing deposits with Federal Reserve & other central banks

55,911

0.22

65,704

0.23

83,232

0.23

74,399

0.25

85,546

0.26

Federal funds sold and securities purchased under resale agreements

7,878

0.52

8,864

0.56

9,403

0.61

11,118

0.61

13,387

0.58

Margin loans

13,906

1.14

14,653

1.10

15,224

1.08

15,840

1.07

17,050

1.05

Non-margin loans:

Domestic offices

21,689

2.40

21,378

2.40

22,538

2.28

22,002

2.31

22,566

2.30

Foreign offices

12,318

1.32

12,225

1.31

13,006

1.22

13,805

1.26

13,833

1.34

Total non-margin loans

34,007

2.01

33,603

2.01

35,544

1.89

35,807

1.90

36,399

1.94

Securities

U.S. government obligations

19,887

1.62

16,540

1.76

13,418

1.96

17,213

1.61

17,462

1.63

U.S. government agency obligations

47,631

1.80

45,745

2.02

43,465

2.00

42,710

1.87

43,167

1.67

Obligations of states and political subdivisions

6,377

2.26

6,518

2.47

6,757

2.76

6,691

2.50

6,473

2.58

Other securities

33,243

1.93

32,403

1.92

33,000

1.78

33,920

1.64

34,318

1.55

Trading securities

6,869

2.33

5,523

2.83

6,173

2.82

5,217

2.60

5,532

2.19

Total securities

114,007

1.86

106,729

2.02

102,813

1.97

105,751

1.83

106,952

1.71

Total interest-earning assets

268,481

1.27

271,150

1.28

285,779

1.21

284,532

1.17

300,758

1.10

Allowance for credit losses

(237

)

(212

)

(207

)

(210

)

(197

)

Cash and due from banks

5,060

6,400

6,623

5,886

5,064

Other assets

52,627

52,549

52,434

53,430

52,182

Total Asset Consol VIE FAS 167

11,524

11,863

11,506

11,354

11,405

Total Assets

337,455

341,750

356,135

354,992

369,212

Liabilities and total equity

Interest-bearing liabilities:

Money market rate accounts and demand deposit accounts

8,183

0.22

8,626

0.16

11,042

0.12

9,333

0.11

7,583

0.13

Savings

897

0.24

1,015

0.25

993

0.25

1,034

0.25

1,185

0.27

Other time deposits

41,706

0.04

41,546

0.04

41,523

0.04

41,544

0.04

42,824

0.04

Foreign offices

100,433

0.07

102,360

0.07

103,462

0.06

101,075

0.06

111,082

0.06

Total interest-bearing deposits

151,219

0.07

153,547

0.06

157,020

0.06

152,986

0.06

162,674

0.06

Federal funds purchased and securities sold under repurchase agreements

9,206

(0.28

)

12,164

(0.12

)

13,155

(0.10

)

14,505

(0.13

)

19,030

(0.05

)

Trading Liabilities

3,036

1.40

2,325

1.69

2,534

1.42

1,978

1.59

2,993

0.97

Other borrowed funds

1,443

0.19

2,233

0.19

2,378

0.42

1,137

0.47

3,242

0.23

Payables to customers and broker-dealers

9,073

0.08

8,659

0.09

9,400

0.09

8,883

0.09

8,916

0.09

Long-term debt

19,002

0.94

19,025

1.00

19,501

1.05

20,420

1.09

20,361

1.16

Total interest-bearing liabilities

192,979

0.16

197,953

0.16

203,988

0.17

199,909

0.17

217,216

0.17

Total noninterest-bearing deposits

70,648

72,075

79,999

81,430

77,820

Other liabilities

26,779

24,380

23,546

24,608

24,854

VIE Liabilities & Obligations FAS 167

10,242

10,466

10,283

10,128

10,180

Total Shareholders’ Equity

35,817

35,826

37,484

38,097

38,127

Noncontrolling interest

990

1,050

835

820

1,015

Total liabilities and total equity

337,455

341,750

356,135

354,992

369,212

Net interest margin - Taxable equivalent basis

1.15

1.16

1.09

1.05

0.98

Note: Interest and average rates were calculated on a taxable equivalent basis, at tax rates of approximately 35%, using dollar amounts in thousands and the actual number of days in the year.

Page 5 of 14

THE BANK OF NEW YORK MELLON CORPORATION

NONINTEREST EXPENSE - 10 Quarter Trend

2012

2013

2014

(dollar amounts in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

1st Qtr

2nd Qtr

Staff:

Compensation

861

866

893

911

885

891

915

929

925

903

Incentives

352

311

306

311

338

364

339

343

359

313

Employee benefits

240

238

237

235

249

254

262

250

227

223

Total staff

1,453

1,415

1,436

1,457

1,472

1,509

1,516

1,522

1,511

1,439

Professional, legal and other purchased services

299

309

292

322

295

317

296

344

312

314

Software and equipment

205

209

208

233

228

238

226

241

237

236

Net occupancy

147

141

149

156

163

159

153

154

152

Distribution and servicing

101

103

109

108

106

111

108

110

107

112

Business development

Sub-custodian

Other

220

254

265

255

307

215

249

258

223

347

Amortization of intangible assets

Merger & integration, litigation and restructuring charges

109

378

(12

)

122

Total noninterest expense

2,756

3,047

2,705

2,825

2,828

2,822

2,779

2,877

2,739

2,946

Memo:

Total noninterest expense excluding M&I, litigation, restructuring, amortization of intangible assets and the charge (recovery) related to investment management funds, net of incentives – Non-GAAP

2,551

2,572

2,568

2,683

2,664

2,743

2,682

2,793

2,681

2,640

Full Time Employees at period-end

47,800

48,300

48,700

49,500

49,700

49,800

50,800

51,100

51,400

51,100

Page 6 of 14

THE BANK OF NEW YORK MELLON CORPORATION

ASSETS UNDER MANAGEMENT, CUSTODY AND/OR ADMINISTRATION AND SECURITIES LENDING - 10 Quarter Trend


	2012												2013												2014
(dollar amounts in billions unless otherwise noted)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr
Assets under management at period-end
Institutional	$	829		$	835		$	882		$	894		$	939		$	968		$	1,041		$	1,072		$	1,118		$	1,109
Mutual Funds		404			388			398			411			405			378		$	407		$	425		$	415		$	440
Private Client		69			70			73			75			79			81		$	84		$	86		$	87		$	87

Assets under management (a)	$	1,302		$	1,293		$	1,353		$	1,380		$	1,423		$	1,427		$	1,532		$	1,583		$	1,620		$	1,636	(b)
AUM at period-end, by product type: (a)
Equity		18	%		17	%		17	%		17	%		17	%		17	%		17	%		17	%		17	%		17	%
Fixed Income		15	%		15	%		15	%		15	%		15	%		15	%		14	%		14	%		14	%		14	%
Index		17	%		17	%		18	%		18	%		19	%		20	%		20	%		20	%		20	%		21	%
Liability-driven investments (c)		22	%		23	%		23	%		24	%		25	%		25	%		26	%		26	%		27	%		27	%
Alternative investments		4	%		5	%		4	%		4	%		4	%		4	%		4	%		4	%		4	%		4	%
Cash		24	%		23	%		23	%		22	%		20	%		19	%		19	%		19	%		18	%		17	%

Total AUM (a)		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%(b)
Assets under custody and/or administration at period-end (in trillions) (d)	$	25.7		$	25.2		$	26.4		$	26.3		$	26.3		$	26.2		$	27.4		$	27.6		$	27.9		$	28.5	(b)
Market value of securities on loan at period-end (e)	$	256		$	267		$	251		$	237		$	244		$	255		$	255		$	235		$	264		$	280
Key Market Metrics
S&P 500 Index (f)		1408			1362			1441			1426			1569			1606			1682			1848			1872			1960
S&P 500 Index-daily average		1349			1350			1401			1418			1514			1609			1675			1769			1835			1900
FTSE 100 Index (f)		5768			5571			5742			5898			6412			6215			6462			6749			6598			6744
FTSE 100 Index-daily average		5822			5551			5744			5844			6300			6438			6530			6612			6680			6764
MSCI World Index (f)		1312			1236			1312			1339			1435			1434			1544			1661			1674			1743
MSCI World Index-daily average		1268			1233			1274			1312			1405			1463			1511			1602			1647			1698
Barclays Capital Global Aggregate Bond^SM Index (f)(g)		351			353			368			366			356			343			356			354			365			376
NYSE & NASDAQ Share Volume (in billions)		186			192			173			174			174			186			166			179			196			187
JP Morgan G7 Volatility Index-daily average (h)		10.39			10.30			8.70			7.56			9.02			9.84			9.72			8.20			7.80			6.22
Average Fed Funds effective rate		0.10	%		0.15	%		0.14	%		0.16	%		0.14	%		0.12	%		0.09	%		0.09	%		0.07	%		0.09	%

(a)

(b)

Preliminary.

(c)

Includes currency and overlay assets under management.

(d)

(e)

(f)

Period end.

(g)

Unhedged in U.S. dollar terms.

(h)

The JP Morgan G7 Volatility Index is based on the implied volatility in 3-month currency options.

Page 7 of 14

THE BANK OF NEW YORK MELLON CORPORATION

ASSETS UNDER MANAGEMENT NET FLOWS - 10 Quarter Trend


	2012												2013												2014
(dollar amounts in billions )	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr
Assets under management at beginning of period (a)	$	1,255		$	1,302		$	1,293		$	1,353		$	1,380		$	1,423		$	1,427		$	1,532		$	1,583		$	1,620
Net inflows (outflows):
Long-term:
Equity		2			(1	)		—			(1	)		1			1			3			(5	)		(1	)		(4	)
Fixed income		5			7			5			2			5			2			(1	)		5			—			(1	)
Index		(2	)		7			5			(1	)		12			8			2			(3	)		—			7
Liability-driven investments (b)		—			11			—			14			22			11			27			4			20			(17	)
Alternative investments		2			2			(1	)		—			—			(1	)		1			1			2			2

Total long-term inflows (outflows)		7			26			9			14			40			21			32			2			21			(13	)
Short-term:
Cash		(9	)		(14	)		9			(6	)		(13	)		(1	)		13			6			(7	)		(18	)

Total net inflows (outflows)		(2	)		12			18			8			27			20			45			8			14			(31	)
Net market / currency impact / other		49			(21	)		42			19			16			(16	)		60			43			23			47

Assets under management at end of period (a)	$	1,302		$	1,293		$	1,353		$	1,380		$	1,423		$	1,427		$	1,532		$	1,583		$	1,620		$	1,636	(c)

(a)

(b)

Includes currency and overlay assets under management.

(c)

Preliminary.

Page 8 of 14

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT MANAGEMENT BUSINESS - 10 Quarter Trend


	2012												2013												2014
(dollar amounts in millions unless otherwise noted)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr
Revenue:
Investment management fees:
Mutual funds	$	265		$	275		$	287		$	298		$	299		$	299		$	293		$	303		$	299		$	311
Institutional clients		327			326			339			355			360			366			367			385			372			385
Wealth management		134			136			136			138			143			146			145			149			153			156

Total investment management fees		726			737			762			791			802			811			805			837			824			852
Performance fees		16			54			10			57			15			33			10			72			20			29

Investment management and performance fees		742			791			772			848			817			844			815			909			844			881
Distribution and servicing		45			45			47			50			46			44			41			41			40			41
Other (a)		50			12			39			23			18			24			26			43			16			48

Total fee and other revenue (a)		837			848			858			921			881			912			882			993			900			970
Net interest revenue		55			52			51			56			62			63			67			68			70			66

Total revenue		892			900			909			977			943			975			949			1,061			970			1,036
Noninterest expense (ex. intangible amortization and the charge (recovery) related to investment management funds)		613			635			620			706			659			692			689			760			698			725

Income before taxes (ex. intangible amortization and the charge (recovery) related to investment management funds)		279			265			289			271			284			283			260			301			272			311
Charge (recovery) related to investment management funds (b)		—			—			16			—			39			(27	)		—			—			(5	)		109
Amortization of intangible assets		48			48			48			48			39			39			35			35			31			31

Income before taxes	$	231		$	217		$	225		$	223		$	206		$	271		$	225		$	266		$	246		$	171
Average assets	$	36,112		$	35,603		$	35,285		$	37,474		$	38,743		$	37,953		$	38,690		$	38,796		$	39,463		$	37,750
Assets under management at period-end (in billions) (c)	$	1,302		$	1,293		$	1,353		$	1,380		$	1,423		$	1,427		$	1,532		$	1,583		$	1,620		$	1,636	(d)
Pre-tax operating margin		26	%		24	%		25	%		23	%		22	%		28	%		24	%		25	%		25	%		16	%
Adjusted pre-tax operating margin (e)		37	%		35	%		37	%		32	%		35	%		34	%		33	%		34	%		34	%		36	%

(a)

Total fee and other revenue includes the impact of the consolidated investment management funds. See “Supplemental information - Explanation of GAAP and Non-GAAP financial measures” beginning on page 19 of the Quarterly Earnings Review for the reconciliation of Non-GAAP measures. Additionally, other revenue includes asset servicing and treasury services revenue.

(b)

The charge (recovery) related to investment management funds is reported net of incentives.

(c)

(d)

Preliminary.

(e)

Includes the pro forma impact of money market fee waivers, is net of distribution and servicing expense and excludes amortization of intangible assets and the charge (recovery) related to investment management funds. See “Supplemental information - Explanation of GAAP and Non-GAAP financial measures” beginning on page 19 of the Quarterly Earnings Review for the reconciliation of Non-GAAP measures.

Page 9 of 14

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT SERVICES BUSINESS - 10 Quarter Trend


	2012												2013												2014
(dollar amounts in millions unless otherwise noted)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr
Revenue:
Investment services fees
Asset servicing fees - ex. securities lending	$	876		$	871		$	876		$	885		$	912		$	922		$	913		$	936		$	955		$	958
Securities lending revenue		39			48			37			31			31			39			26			21			30			35
Issuer services		251			275			310			213			236			294			321			236			228			231
Clearing services		300			307			285			291			302			320			314			322			323			324
Treasury services		131			129			131			136			137			135			135			137			134			140

Total investment services fees		1,597			1,630			1,639			1,556			1,618			1,710			1,709			1,652			1,670			1,688
Foreign Exchange and other trading revenue		173			176			153			126			173			193			177			150			158			145
Other (a)		75			67			78			75			70			67			63			58			59			87

Total fee and other revenue (a)		1,845			1,873			1,870			1,757			1,861			1,970			1,949			1,860			1,887			1,920
Net interest revenue		642			607			609			581			653			633			619			610			590			593

Total revenue		2,487			2,480			2,479			2,338			2,514			2,603			2,568			2,470			2,477			2,513
Provision for credit losses		17			(15	)		(4	)		(1	)		1			—			—			—			—			—
Noninterest expenses (ex. intangible amortization)		1,783			2,090			1,729			1,766			1,796			1,825			1,765			1,822			1,778			1,824

Income before taxes (ex. intangible amortization)		687			405			754			573			717			778			803			648			699			689
Amortization of intangible assets		48			49			47			48			47			54			46			47			44			44

Income before taxes	$	639		$	356		$	707		$	525		$	670		$	724		$	757		$	601		$	655		$	645
Average loans	$	26,630		$	25,611		$	24,917		$	24,868		$	26,697		$	27,814		$	27,865		$	31,211		$	31,468		$	33,115
Average assets	$	214,592		$	210,064		$	224,986		$	243,052		$	240,187		$	244,802		$	246,252		$	258,294		$	258,470		$	264,221
Average deposits	$	175,526		$	173,087		$	188,743		$	204,164		$	200,222		$	204,499		$	206,068		$	216,216		$	214,947		$	220,701
Pre-tax operating margin		26	%		14	%		29	%		22	%		27	%		28	%		29	%		24	%		26	%		26	%
Pre-tax operating margin (ex. intangible amortization)		28	%		16	%		30	%		25	%		29	%		30	%		31	%		26	%		28	%		27	%
Investment services fees as a percentage of noninterest expense (b)		94	%		94	%		96	%		90	%		92	%		94	%		97	%		90	%		93	%		93	%
Assets under custody and/or administration at period-end (in trillions) (c)	$	25.7		$	25.2		$	26.4		$	26.3		$	26.3		$	26.2		$	27.4		$	27.6		$	27.9		$	28.5	(d)
Market value of securities on loan at period-end (in billions) (e)	$	256		$	267		$	251		$	237		$	244		$	255		$	255		$	235		$	264		$	280

(a)

Total fee and other revenue includes investment management fees and distribution and servicing revenue.

(b)

Noninterest expense excludes amortization of intangible assets and litigation expense.

(c)

(d)

Preliminary.

(e)

Page 10 of 14

THE BANK OF NEW YORK MELLON CORPORATION

OTHER SEGMENT- 10 Quarter Trend


	2012 (a)												2013 (a)											2014
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr		4th Qtr			1st Qtr			2nd Qtr

Revenue:
Fee and other revenue (a)	$	201		$	146		$	186		$	219		$	152		$	347		$	172	$	(20	)	$	112		$	119
Net interest revenue		68			75			89			88			4			61			86		83			68			60

Total revenue (a)		269			221			275			307			156			408			258		63			180			179
Provision for credit loss		(12	)		(4	)		(1	)		(60	)		(25	)		(19	)		2		6			(18	)		(12	)
Noninterest expense (ex. M&I and restructuring charges)		255			203			232			230			243			236			230		200			193			93

Income (loss) before taxes (ex. M&I and restructuring charges) (a)	$	26		$	22		$	44		$	137		$	(62	)	$	191		$	26	$	(143	)	$	5		$	98
M&I and restructuring charges		9			22			13			27			5			3			14		13			—			120

Income (loss) before taxes (a)	$	17		$	—		$	31		$	110		$	(67	)	$	188		$	12	$	(156	)	$	5		$	(22	)

Average loans and leases	$	9,148		$	9,618		$	9,389		$	10,267		$	10,610		$	10,846		$	10,938	$	9,802		$	10,104		$	9,962
Average assets	$	50,640		$	59,335		$	58,643		$	55,469		$	54,734		$	54,700		$	56,808	$	59,045		$	57,059		$	67,241

(a)

Page 11 of 14

THE BANK OF NEW YORK MELLON CORPORATION

BUSINESSES


	Investment Management									Investment Services									Other									Consolidated Results
(dollar amounts in millions unless otherwise noted)	2013			2012			2011			2013			2012			2011			2013			2012			2011			2013			2012			2011
Revenue:
Investment services fees
Asset servicing	$	104		$	117		$	112		$	3,800		$	3,663		$	3,585		$	1		$	—		$	—		$	3,905		$	3,780		$	3,697
Issuer services		—			—			—			1,087			1,049			1,252			3			3			193			1,090			1,052			1,445
Clearing services		—			—			—			1,258			1,183			1,149			6			10			10			1,264			1,193			1,159
Treasury services		2			2			2			544			527			513			8			20			20			554			549			535

Total investment services fees		106			119			114			6,689			6,422			6,499			18			33			223			6,813			6,574			6,836
Investment management fees		3,255			3,016			2,905			63			66			64			27			37			46			3,345			3,119			3,015
Performance fees		130			137			93			—			—			1			—			(1	)		—			130			136			94
Foreign exchange and other trading revenue		8			9			(1	)		693			628			827			(27	)		55			22			674			692			848
Distribution and servicing		172			187			181			8			5			6			—			—			—			180			192			187
Financing-related fees		5			6			6			44			42			46			123			124			118			172			172			170
Investment and other income		(14	)		(9	)		(107	)		142			171			186			376	(a)		352	(a)		487	(a)		504	(a)		514	(a)		566	(a)

Total fee revenue		3,662			3,465			3,191			7,639			7,334			7,629			517	(a)		600	(a)		896	(a)		11,818	(a)(b)		11,399	(a)(b)		11,716	(a)(b)
Net securities gains (losses)		6			(1	)		1			1			11			—			134			152			47			141			162			48

Total fee and other revenue		3,668			3,464			3,192			7,640			7,345			7,629			651	(a)		752	(a)		943	(a)		11,959	(a)(b)		11,561	(a)(b)		11,764	(a)(b)
Net interest revenue (expense)		260			214			204			2,515			2,439			2,567			234			320			212			3,009			2,973			2,983

Total revenue		3,928			3,678			3,396			10,155			9,784			10,196			885	(a)		1,072	(a)		1,155	(a)		14,968	(a)		14,534	(a)		14,747	(a)
Provision for credit losses		—			—			1			1			(3	)		—			(36	)		(77	)		—			(35	)		(80	)		1
Noninterest expenses (ex. intangible amortization)		2,812			2,590			2,500			7,208			7,368			6,996			944			991			1,187			10,964			10,949			10,683

Income (loss) before taxes (ex. intangible amortization)		1,116			1,088			895			2,946			2,419			3,200			(23	)(a)		158	(a)		(32	)(a)		4,039	(a)(b)		3,665	(a)(b)		4,063	(a)(b)
Amortization of intangible assets		148			192			213			194			192			199			—			—			16			342			384			428

Income (loss) before taxes and noncontrolling interest	$	968		$	896		$	682		$	2,752		$	2,227		$	3,001		$	(23	)(a)	$	158	(a)	$	(48	)(a)	$	3,697	(a)(b)	$	3,281	(a)(b)	$	3,635	(a)(b)
Average loans	$	9,361		$	7,950		$	6,970		$	28,407		$	25,503		$	24,326		$	10,548		$	9,607		$	9,623		$	48,316		$	43,060		$	40,919
Average assets	$	38,546		$	36,120		$	36,696		$	247,430		$	223,233		$	205,336		$	56,335		$	56,028		$	49,113		$	342,311		$	315,381		$	291,145
Average deposits	$	13,755		$	11,311		$	9,769		$	206,793		$	185,441		$	166,823		$	5,148		$	7,458		$	6,087		$	225,696		$	204,210		$	182,679
Assets under management at period-end (in billions) (c)	$	1,583		$	1,380		$	1,255		$	—		$	—		$	—		$	—		$	—		$	—		$	1,583		$	1,380		$	1,255
Assets under custody and/or administration at period-end (in trillions) (d)	$	—		$	—		$	—		$	27.6		$	26.3		$	25.1		$	—		$	—		$	—		$	27.6		$	26.3		$	25.1
Market value of securities on loan at period-end (in billions) (e)	$	—		$	—		$	—		$	235		$	237		$	266		$	—		$	—		$	—		$	235		$	237		$	266
Pre-tax operating margin-GAAP		25	%		24	%		20	%		27	%		23	%		29	%		N/M			N/M			N/M			25	%		23	%		25	%
Memo:
Securities Lending Revenue																													155			198			183

Note: On December 31, 2011, BNY Mellon sold its Shareowner Services business. In the first quarter of 2012, we reclassified the results of the Shareowner Services business from the Investment Services business to the Other segment. The reclassification did not impact the consolidated results. All prior periods have been restated.

(a)

(b)

Total fee and other revenue and income before taxes for the years 2011, 2012 and 2013 includes income from consolidated investment management funds of $200 million, $189 million and $183 million, respectively, net of income attributable to noncontrolling interests of $50 million, $76 million and $80 million respectively. The net of these income statement line items of $150 million, $113 million and $103 million, respectively, are included above in fee and other revenue.

(c)

(d)

Includes the AUC/A of CIBC Mellon Global Securities Services Company (“CIBC Mellon”), a joint venture with the Canadian Imperial Bank of Commerce, of $1.1 trillion at Dec. 31, 2011 and Dec. 31, 2012, and $1.2 trillion at Dec. 31, 2013.

(e)

Note: See pages 9 through 11 for businesses results.

N/M - Not meaningful

Page 12 of 14

THE BANK OF NEW YORK MELLON CORPORATION

NONPERFORMING ASSETS - 10 Quarter Trend


	2012												2013												2014
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr

Nonperforming loans:
Other residential mortgages	$	188		$	177		$	166		$	158		$	148		$	135		$	128		$	117		$	107		$	105
Wealth management		35			35			33			30			30			13			12			11			12			12
Commercial real estate		39			30			29			18			17			18			4			4			4			4
Commercial		32			31			29			27			24			24			15			15			13			13
Foreign loans		10			9			9			9			9			9			9			6			7			4
Financial institutions		14			3			3			3			3			2			1			—			—			—


Total nonperforming loans		318			285			269			245			231			201			169			153			143			138
Other assets owned		13			9			5			4			3			3			3			3			3			4

Total nonperforming assets (a)	$	331		$	294		$	274		$	249		$	234		$	204		$	172		$	156		$	146		$	142


Nonperforming assets ratio		0.77	%		0.65	%		0.60	%		0.53	%		0.48	%		0.41	%		0.34	%		0.30	%		0.27	%		0.24	%
Nonperforming assets ratio excluding margin loans		1.11	%		0.92	%		0.83	%		0.74	%		0.65	%		0.57	%		0.49	%		0.43	%		0.39	%		0.34	%

Allowance for loan losses/nonperforming loans		121.4			127.0			126.0			108.6			102.6			105.5			121.9			137.3			138.5			135.5
Allowance for loan losses/nonperforming assets		116.6			123.1			123.7			106.8			101.3			103.9			119.8			134.6			135.6			131.7
Total allowance for credit losses/nonperforming loans		155.3			163.9			169.5			158.0			155.0			167.7			200.6			224.8			228.0			225.4
Total allowance for credit losses/nonperforming assets		149.2			158.8			166.4			155.4			153.0			165.2			197.1			220.5			221.8			219.0

(a)

Loans of consolidated investment management funds are not part of BNY Mellon’s loan portfolio. Included in the loans of consolidated investment management funds are nonperforming loans of the 1st, 2nd, 3rd and 4th quarters of 2012 of $180 million, $155 million, $153 million, and $174 million, respectively, for the 1st through 4th quarters of 2013 of $161 million, $44 million, $31 million, and $16 million, respectively, and for the 1st quarter through 2nd quarter of 2014 of $74 million and $68 million, respectively.

These loans are recorded at fair value and therefore do not impact the provision for credit losses and allowance for loan losses, and accordingly are excluded from the nonperforming assets table above.

Page 13 of 14

THE BANK OF NEW YORK MELLON CORPORATION

ALLOWANCE FOR CREDIT LOSSES, PROVISION AND NET CHARGE-OFFS - 10 Quarter Trend


	2012												2013												2014
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr

Allowance for credit losses:
Allowance for credit losses	$	394		$	386		$	362		$	339		$	266		$	237		$	212		$	206		$	210		$	198
Allowance for lending-related commitments		103			108			105			117			121			121			125			133			134			128

Allowance for credit losses - beginning of period		497			494			467			456			387			358			337			339			344			326

Net (charge-offs)
Charge-offs		(10	)		(10	)		(8	)		(10	)		(5	)		(3	)		(2	)		(6	)		(1	)		(4	)
Recoveries		2			2			2			2			—			1			2			5			1			1

Total Net (charge-offs)		(8	)		(8	)		(6	)		(8	)		(5	)		(2	)		—			(1	)		—			(3	)

Provision for credit losses		5			(19	)		(5	)		(61	)		(24	)		(19	)		2			6			(18	)		(12	)

Allowance for credit losses - end of period		494			467			456			387			358			337			339			344			326			311

Allowance for loan losses	$	386		$	362		$	339		$	266		$	237		$	212		$	206		$	210		$	198		$	187
Allowance for lending-related commitments		108			105			117			121			121			125			133			134			128			124

Allowance for credit losses - end of period		494			467			456			387			358			337			339			344			326			311

Allowance for loan losses as a percentage of total loans		0.90	%		0.80	%		0.74	%		0.57	%		0.48	%		0.42	%		0.41	%		0.41	%		0.37	%		0.32	%

Page 14 of 14

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