Bank of New York Mellon Corp - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - October 16, 2020

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8-K - FORM 8-K - Bank of New York Mellon Corpbk-20201016.htm
EX-99.3 - EXHIBIT 99.3 - Bank of New York Mellon Corpex993_financialhighlight.htm
EX-99.1 - EXHIBIT 99.1 - Bank of New York Mellon Corpex991earningsrelease3q.htm


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The Bank of New York Mellon Corporation
Financial Supplement
Third Quarter 2020



Table of Contents
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Consolidated ResultsPage
Consolidated Financial Highlights
Condensed Consolidated Income Statement
Condensed Consolidated Balance Sheet
Fee and Other Revenue
Average Balances and Interest Rates
Capital and Liquidity
Business Segment Results
Investment Services Business
Investment and Wealth Management Business
AUM by Product, AUM Flows and Wealth Management Client Assets
Other Segment
Other
Securities Portfolio
Allowance for Credit Losses and Nonperforming Assets
Supplemental Information – Explanation of GAAP and Non-GAAP Financial Measures



THE BANK OF NEW YORK MELLON CORPORATION
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CONSOLIDATED FINANCIAL HIGHLIGHTS
(dollars in millions, except per common share amounts, or unless otherwise noted)3Q20 vs.YTD20 vs.
3Q202Q201Q204Q193Q192Q203Q19YTD20YTD19YTD19
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/MN/M27 7 N/M
Total fee and other revenue3,117 3,176 3,332 3,946 3,128 (2)— 9,625 9,272 4 
Income (loss) from consolidated investment management funds27 54 (38)17 3 N/MN/M43 39 N/M
Net interest revenue703 780 814 815 730 (10)(4)2,297 2,373 (3)
Total revenue3,847 4,010 4,108 4,778 3,861 (4)— 11,965 11,684 2 
Provision for credit losses9 143 169 (8)(16)N/MN/M321 (17)N/M
Noninterest expense2,681 2,686 2,712 2,964 2,590 — 4 8,079 7,936 2 
Income before income taxes1,157 1,181 1,227 1,822 1,287 (2)(10)3,565 3,765 (5)
Provision for income taxes213 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 margin30 %29 %30 %38 %33 %30 %32 %
Return on common equity8.7 %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 employees48,600 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 ratio32 %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") ratio13.0 %12.6 %11.3 %11.5 %11.1 %
Tier 1 capital ratio15.7 %15.4 %13.5 %13.7 %13.2 %
Total capital ratio16.6 %16.3 %14.3 %14.4 %14.0 %
Tier 1 leverage ratio6.5 %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.
3


THE BANK OF NEW YORK MELLON CORPORATION
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CONDENSED CONSOLIDATED INCOME STATEMENT
(dollars in millions, except per share amounts; common shares in thousands)
3Q20 vs.YTD20 vs.
3Q202Q201Q204Q193Q192Q203Q19YTD20YTD19YTD19
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 fees397 431 470 421 419 (8)(5)1,298 1,227 6 
Issuer services fees295 277 263 264 324 6 (9)835 866 (4)
Treasury services fees152 144 149 147 140 6 9 445 412 8 
Total investment services fees2,012 2,025 2,041 1,980 2,035 (1)(1)6,078 5,920 3 
Investment management and performance fees835 786 862 883 832 6 — 2,483 2,506 (1)
Foreign exchange and other trading revenue137 166 319 168 150 (17)(9)622 486 28 
Financing-related fees49 58 59 46 49 (16)— 166 150 11 
Distribution and servicing29 27 31 34 33 7 (12)87 95 (8)
Investment and other income46 105 11 860 30 N/MN/M162 108 N/M
Total fee revenue3,108 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/MN/M27 7 N/M
Total fee and other revenue3,117 3,176 3,332 3,946 3,128 (2)— 9,625 9,272 4 
Income (loss) from consolidated investment management funds27 54 (38)17 3 N/MN/M43 39 N/M
Net interest revenue703 780 814 815 730 (10)(4)2,297 2,373 (3)
Total revenue3,847 4,010 4,108 4,778 3,861 (4)— 11,965 11,684 2 
Provision for credit losses9 143 169 (8)(16)N/MN/M321 (17)N/M
Noninterest expense
Staff1,466 1,464 1,482 1,639 1,479 — (1)4,412 4,424 — 
Professional, legal and other purchased services355 337 330 367 316 5 12 1,022 978 4 
Software and equipment340 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 clearing119 120 105 119 111 (1)7 344 331 4 
Distribution and servicing85 85 91 92 97 — (12)261 282 (7)
Bank assessment charges30 35 35 32 31 (14)(3)100 93 8 
Business development17 20 42 65 47 (15)(64)79 148 (47)
Amortization of intangible assets26 26 26 28 30 — (13)78 89 (12)
Other107 117 140 145 32 (9)234 364 282 29 
Total noninterest expense2,681 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/MN/M(4)(17)N/M
Preferred stock dividends(61)(49)(36)(49)(36)N/MN/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: Basic889,499 889,020 894,122 911,324 933,264 — %(5)%891,050 949,035 (6)%
Diluted891,069 890,561 896,689 914,739 935,677 — %(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.
4


THE BANK OF NEW YORK MELLON CORPORATION
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CONDENSED CONSOLIDATED BALANCE SHEET
20202019
(in millions)Sept. 30June 30March 31Dec. 31Sept. 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 banks106,185 112,728 146,535 95,042 73,811 
Interest-bearing deposits with banks19,027 18,045 22,672 14,811 15,417 
Federal funds sold and securities purchased under resale agreements29,647 36,638 27,363 30,182 43,723 
Securities155,339 154,682 139,273 123,033 122,340 
Trading assets13,074 14,150 12,918 13,571 10,180 
Loans55,491 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 equipment3,617 3,598 3,514 3,625 3,149 
Accrued interest receivable489 540 576 624 596 
Goodwill17,357 17,253 17,240 17,386 17,248 
Intangible assets3,026 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 value588 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 agreements15,907 14,512 13,128 11,401 11,796 
Trading liabilities6,084 5,595 6,625 4,841 4,756 
Payables to customers and broker-dealers23,514 25,012 24,016 18,758 18,364 
Commercial paper671 665 1,121 3,959 3,538 
Other borrowed funds420 1,628 1,544 599 820 
Accrued taxes and other expenses5,347 5,029 4,705 5,642 5,081 
Other liabilities
8,671 12,869 11,425 7,612 9,796 
Long-term debt26,121 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 value4 4 1 1 15 
Total liabilities
383,051 398,350 426,776 339,780 331,698 
Temporary equity
Redeemable noncontrolling interests179 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 capital27,741 27,702 27,644 27,515 27,471 
Retained earnings33,821 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 
5


THE BANK OF NEW YORK MELLON CORPORATION
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FEE AND OTHER REVENUE
3Q20 vs.YTD20 vs.
(dollars in millions)3Q202Q201Q204Q193Q192Q203Q19YTD20YTD19YTD19
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 revenue40 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 fees295 277 263 264 324 6 (9)835 866 (4)
Treasury services fees152 144 149 147 140 6 9 445 412 8 
Total investment services fees2,012 2,025 2,041 1,980 2,035 (1)(1)6,078 5,920 3 
Investment management and performance fees (c):
Investment management fees828 781 812 835 830 6 — 2,421 2,471 (2)
Performance fees7 5 50 48 2 N/MN/M62 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 exchange151 174 253 138 129 (13)17 578 439 32 
Other trading (loss) revenue(14)(8)66 30 21 N/MN/M44 47 N/M
Total foreign exchange and other trading revenue137 166 319 168 150 (17)(9)622 486 28 
Financing-related fees49 58 59 46 49 (16)— 166 150 11 
Distribution and servicing29 27 31 34 33 7 (12)87 95 (8)
Investment and other income:
Corporate/bank-owned life insurance33 36 36 43 33 N/MN/M105 95 N/M
Expense reimbursements from joint venture23 19 21 20 21 N/MN/M63 59 N/M
Asset-related gains4 3 4 815 2 N/MN/M11 4 N/M
Seed capital gains (losses) (c)
9 23 (31)4 — N/MN/M1 10 N/M
Other (loss) income(23)24 (19)(22)(26)N/MN/M(18)(60)N/M
Total investment and other income (c)
46 105 11 860 30 N/MN/M162 108 N/M
Total fee revenue3,108 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/MN/M27 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.

6


THE BANK OF NEW YORK MELLON CORPORATION
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AVERAGE BALANCES AND INTEREST RATES
3Q202Q201Q204Q193Q19
Average balanceAverage rateAverage balanceAverage rateAverage balanceAverage rateAverage balanceAverage rateAverage balanceAverage 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 loans12,870 1.24 12,791 1.28 12,984 2.69 11,609 3.25 10,303 4.02 
Non-margin loans:
Domestic offices30,053 2.12 31,185 2.21 31,720 3.02 29,690 3.36 29,285 2.75 (b)
Foreign offices10,693 1.45 12,743 1.84 11,170 2.55 11,418 2.70 11,247 2.97 
Total non-margin loans40,746 1.94 43,928 2.10 42,890 2.89 41,108 3.18 40,532 2.81 (b)
Securities:
U.S. government obligations30,073 1.36 27,901 1.52 23,175 1.87 18,444 2.08 19,315 2.11 
U.S. government agency obligations78,300 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 assets57,231 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 offices108,733 (0.09)108,508 (0.12)97,717 0.29 95,262 0.49 94,738 0.71 
Total interest-bearing deposits211,500 (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 liabilities2,692 0.30 1,974 0.39 1,626 1.61 1,504 2.25 1,371 2.33 
Other borrowed funds873 1.40 2,272 1.30 719 2.27 709 2.83 1,148 3.24 
Commercial paper2,274 0.09 191 1.02 1,581 1.56 1,792 1.66 3,796 2.26 
Payables to customers and broker-dealers18,501 (0.01)18,742 (0.01)16,386 0.73 15,178 1.07 15,440 1.52 
Long-term debt26,511 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 deposits67,610 72,411 60,577 49,632 49,027 
Other noninterest-bearing liabilities23,393 24,121 24,229 20,681 19,280 
Total The Bank of New York Mellon Corporation shareholders’ equity44,456 42,486 41,206 41,384 41,139 
Noncontrolling interests205 188 172 252 259 
Total liabilities and equity$414,865 $415,359 $385,278 $354,341 $350,679 
Net interest margin0.79 %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.
7


THE BANK OF NEW YORK MELLON CORPORATION
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CAPITAL AND LIQUIDITY
20202019
(dollars in millions)Sept. 30June 30March 31Dec. 31Sept. 30
Consolidated regulatory capital ratios (a)
Standardized Approach:
CET1 capital$21,171 $20,035 $18,465 $18,540 $18,196 
Tier 1 capital25,614 24,478 21,933 21,996 21,677 
Total capital27,331 26,183 23,494 23,449 23,145 
Risk-weighted assets156,741 157,290 163,006 148,695 148,399 
CET1 ratio13.5 %12.7 %11.3 %12.5 %12.3 %
Tier 1 capital ratio16.3 15.6 13.5 14.8 14.6 
Total capital ratio17.4 16.6 14.4 15.8 15.6 
Advanced Approaches:
CET1 capital$21,171 $20,035 $18,465 $18,540 $18,196 
Tier 1 capital25,614 24,478 21,933 21,996 21,677 
Total capital27,095 25,937 23,281 23,233 22,921 
Risk-weighted assets163,136 159,340 162,561 160,898 164,172 
CET1 ratio13.0 %12.6 %11.4 %11.5 %11.1 %
Tier 1 capital ratio15.7 15.4 13.5 13.7 13.2 
Total capital ratio16.6 16.3 14.3 14.4 14.0 
Tier 1 leverage ratio6.5 %6.2 %6.0 %6.6 %6.5 %
SLR:
Leverage exposure$300,105 (b)$297,300 (b)$392,807 $362,452 $359,023 
SLR8.5 %(b)8.2 %(b)5.6 %6.1 %6.0 %
Average liquidity coverage ratio111 %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.

8


THE BANK OF NEW YORK MELLON CORPORATION
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INVESTMENT SERVICES BUSINESS
3Q20 vs.YTD20 vs.
(dollars in millions)3Q202Q201Q204Q193Q192Q203Q19YTD20YTD19YTD19
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 revenue37 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 fees295 277 263 264 324 6 (9)835 866 (4)
Treasury services fees152 144 149 147 139 6 9 445 411 8 
Total investment services fees2,000 2,016 2,029 1,970 2,020 (1)(1)6,045 5,880 3 
Foreign exchange and other trading revenue146 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 revenue2,246 2,339 2,436 2,236 2,296 (4)(2)7,021 6,690 5 
Net interest revenue681 768 806 778 761 (11)(11)2,255 2,348 (4)
Total revenue2,927 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/MN/M284 (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 assets18 18 18 19 21 — (14)54 61 (11)
Total noninterest expense2,020 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 margin31 %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 %
Pershing538 578 653 579 575 (7)(6)1,769 1,708 4 
Issuer Services435 431 419 415 466 1 (7)1,285 1,308 (2)
Treasury Services323 340 339 329 312 (5)4 1,002 946 6 
Clearance and Collateral Management277 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.

9


THE BANK OF NEW YORK MELLON CORPORATION
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INVESTMENT SERVICES BUSINESS
3Q20 vs.YTD20 vs.
(dollars in millions, unless otherwise noted)3Q202Q201Q204Q193Q192Q203Q19YTD20YTD19YTD19
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/MN/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.

10


THE BANK OF NEW YORK MELLON CORPORATION
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INVESTMENT AND WEALTH MANAGEMENT BUSINESS
3Q20 vs.YTD20 vs.
(dollars in millions)3Q202Q201Q204Q193Q192Q203Q19YTD20YTD19YTD19
Revenue:
Investment management fees (a)
$828 $782 $812 $836 $830 6 %— %$2,422 $2,471 (2)%
Performance fees7 5 50 48 2 N/MN/M62 35 77 
Investment management and performance fees (b)
835 787 862 884 832 6 — 2,484 2,506 (1)
Distribution and servicing31 34 43 44 45 (9)(31)108 134 (19)
Other (a)
5 17 (59)(4)(39)N/MN/M(37)(79)N/M
Total fee and other revenue (a)
871 838 846 924 838 4 4 2,555 2,561 — 
Net interest revenue47 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 losses12 7 9 — — N/MN/M28 (1)N/M
Noninterest expense (ex. amortization of intangible assets)653 650 687 722 582 — 12 1,990 1,888 5 
Amortization of intangible assets8 8 8 9 10 — (20)24 28 (14)
Total noninterest expense661 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 margin27 %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 Management277 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.
11


THE BANK OF NEW YORK MELLON CORPORATION
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AUM BY PRODUCT, AUM FLOWS AND WEALTH MANAGEMENT CLIENT ASSETS
3Q20 vs.
(dollars in billions)3Q202Q201Q204Q193Q192Q203Q19
AUM by product type (a)(b)
Equity$149 $141 $120 $154 $147 6 %1 %
Fixed income241 224 211 224 211 8 14 
Index350 333 274 339 321 5 9 
Liability-driven investments788 752 705 728 742 5 6 
Multi-asset and alternative investments193 185 171 192 182 4 6 
Cash320 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 income1 4 — 5 2 
Liability-driven investments14 (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 impact41 143 (91)(20)66 
Net currency impact44 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.


12


THE BANK OF NEW YORK MELLON CORPORATION
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OTHER SEGMENT
(in millions)3Q202Q201Q204Q193Q19YTD20YTD19
Fee revenue (loss)$11 $29 $21 $817 (a)$(5)$61 $36 
Net securities gains (losses)9 9 9 (23)(1)27 7 
Total fee and other revenue (loss)20 38 30 794 (6)88 43 
Net interest (expense)(25)(36)(44)(10)(80)(105)(150)
Total (loss) revenue(5)2 (14)784 (86)(17)(107)
Provision for credit losses7 (9)11 (3)(1)9 (5)
Noninterest expense— 39 30 54 25 69 103 
(Loss) income before taxes$(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.

13


THE BANK OF NEW YORK MELLON CORPORATION
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SECURITIES PORTFOLIO
(dollars in millions)June 30, 20203Q20
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 valueAAA/
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. Treasury28,651 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 MBS11,731 45 11,340 11,777 104 437 32 100 — — — — — 
Supranational5,484 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 — — — — — 
CLOs4,432 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 bonds831 — 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 — 
Other1 — 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.

14


THE BANK OF NEW YORK MELLON CORPORATION
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ALLOWANCE FOR CREDIT LOSSES AND NONPERFORMING ASSETS
20202019
(dollars in millions)Sept. 30June 30March 31Dec. 31Sept. 30
Allowance for credit losses - beginning of period:
Allowance for loan losses$302 $140 $122 $127 $146 
Allowance for lending-related commitments152 148 94 97 95 
Allowance for other financial instruments21 (a)41 (a)N/AN/AN/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/AN/A(55)(b)N/AN/A
Net recoveries (charge-offs):
Charge-offs— — (1)(1)(1)
Recoveries2 3 — 1 — 
Total net recoveries (charge-offs) 2 3 (1)— (1)
Provision for credit losses9 (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 commitments135 152 148 94 97 
Allowance for other financial instruments26 (a)21 (a)41 (a)N/AN/A
Allowance for credit losses - end of period$486 $475 $329 $216 $224 
Allowance for loan losses as a percentage of total loans0.59 %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.

15


THE BANK OF NEW YORK MELLON CORPORATION
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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)3Q202Q201Q204Q193Q19YTD20YTD19
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 assets26 26 26 28 30 78 89 
Less: Tax impact of amortization of intangible assets7 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 goodwill17,357 17,243 17,311 17,332 17,267 17,304 17,328 
 Average intangible assets3,039 3,058 3,089 3,119 3,141 3,062 3,176 
Add: Deferred tax liability – tax deductible goodwill1,132 1,119 1,109 1,098 1,103 1,132 1,103 
 Deferred tax liability – intangible assets666 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-GAAP16.7 %18.5 %20.4 %29.3 %21.4 %18.5 %21.1 %

16


THE BANK OF NEW YORK MELLON CORPORATION
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SUPPLEMENTAL INFORMATION – EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
Book value and tangible book value per common share reconciliation20202019
(dollars in millions, except common shares)Sept. 30June 30March 31Dec. 31Sept. 30
BNY Mellon shareholders’ equity at period end – GAAP$44,917 $43,697 $41,145 $41,483 $41,120 
Less: Preferred stock4,532 4,532 3,542 3,542 3,542 
BNY Mellon common shareholders’ equity at period end – GAAP40,385 39,165 37,603 37,941 37,578 
Less: Goodwill17,357 17,253 17,240 17,386 17,248 
Intangible assets3,026 3,045 3,070 3,107 3,124 
Add: Deferred tax liability – tax deductible goodwill1,132 1,119 1,109 1,098 1,103 
Deferred tax liability – intangible assets666 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)3Q202Q201Q204Q193Q19
Net interest revenue – GAAP$703 $780 $814 $815 $730 
Add: Tax equivalent adjustment2 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.

17


THE BANK OF NEW YORK MELLON CORPORATION
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SUPPLEMENTAL INFORMATION – EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
Pre-tax operating margin reconciliation - Investment and Wealth Management business
(dollars in millions)3Q202Q201Q204Q193Q19YTD20YTD19
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 expense85 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 reconciliations3Q20 vs.
(dollars in millions)3Q203Q193Q19
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)%

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