Bank of New York Mellon Corp - FORM 8-K - EX-99.2

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8-K - FORM 8-K - Bank of New York Mellon Corp	d610934d8k.htm
EX-99.1 - EX-99.1 - Bank of New York Mellon Corp	d610934dex991.htm

Exhibit 99.2

THE BANK OF NEW YORK MELLON CORPORATION

Financial Trends

Notes:

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

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.

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.

On July 1, 2010 and August 2, 2010 we completed the acquisitions of Global Investment Servicing (“GIS”) and BHF Asset Servicing GmbH (“BAS”). The financial results for GIS are included in the Investment Services and Other businesses. The financial results for BAS are included in the Investment Services business.

On January 1, 2010, we adopted SFAS No. 167, “Amendments to FASB Interpretation No. 46 (R).” Certain investment management funds are disclosed separately on our balance sheet and securitizations are included in available-for-sale securities. The income statement separately discloses the operations of consolidated asset management funds and the net income attributable to noncontrolling interests of consolidated investment management funds; previously these were disclosed as investment management and performance fees revenue and investment and other income, respectively.

The following items have impacted the comparability of our results:

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.

2010 includes a charge related to special litigation reserves in the first quarter.

Expense efficiency restructuring charges - Recorded charges in 2010 and 2011.

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/Pretax Operating Margin:

Ratios are presented for continuing operations basis only in 2010. 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 Non-GAAP Financial Measures’ in The Bank of New York Mellon Corporation Quarterly Earnings Review dated October 16, 2013, furnished as an exhibit to the Report on Form 8-K to which these Financial Trends are furnished as an exhibit.

Summations may not equal due to rounding. As a result of this rounding convention, immaterial differences may exist between the business trends data versus business data in the Form 10-K for the year ended December 31, 2012 or other reports filed with the SEC.

Page 1 of 14

THE BANK OF NEW YORK MELLON CORPORATION

11 Quarter Trend


	2011												2012												2013
(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			3rd Qtr

Revenue:
Investment services fees
Asset servicing	$	917		$	973		$	922		$	885		$	943		$	950		$	942		$	945		$	969		$	988		$	964
Issuer services		351			365			442			287			251			275			311			215			237			294			322
Clearing services		292			292			297			278			303			309			287			294			304			321			315
Treasury services		134			134			133			134			136			134			138			141			141			139			137

Total investment services fees		1,694			1,764			1,794			1,584			1,633			1,668			1,678			1,595			1,651			1,742			1,738
Investment management and performance fees		764			779			729			730			745			797			779			853			822			848			821
Foreign exchange & other trading revenue		198			222			200			228			191			180			182			139			161			207			160
Distribution and servicing		53			49			43			42			46			46			48			52			49			45			43
Financing-related fees		43			49			40			38			44			37			46			45			41			44			44
Investment and other income		81			145			83			146			139			48			124			116			72			269			135

Total fee revenue		2,833			3,008			2,889			2,768			2,798			2,776			2,857			2,800			2,796			3,155			2,941
Net securities gains (losses)		5			48			(2	)		(3	)		40			50			22			50			48			32			22

Total fee and other revenue		2,838			3,056			2,887			2,765			2,838			2,826			2,879			2,850			2,844			3,187			2,963
Income (loss) of consolidated investment management funds		110			63			32			(5	)		43			57			47			42			50			65			32
Net interest revenue		698			731			775			780			765			734			749			725			719			757			772

Total revenue		3,646			3,850			3,694			3,540			3,646			3,617			3,675			3,617			3,613			4,009			3,767
Provision for credit losses		—			—			(22	)		23			5			(19	)		(5	)		(61	)		(24	)		(19	)		2
Noninterest expenses		2,530			2,645			2,573			2,546			2,551			2,572			2,584			2,683			2,703			2,716			2,682
Amortization of intangible assets		108			108			106			106			96			97			95			96			86			93			81
Merger & integration, litigation and restructuring charges		59			63			92			176			109			378			26			46			39			13			16

Total noninterest expense		2,697			2,816			2,771			2,828			2,756			3,047			2,705			2,825			2,828			2,822			2,779
Income (loss) from continuing operations before taxes		949			1,034			945			689			885			589			975			853			809			1,206			986
Provision for income taxes		279			277			281			211			254			93			225			207			1,046			321			(2	)

Net income (loss) from continuing operations		670			757			664			478			631			496			750			646			(237	)		885			988
Net income (loss) attributable to noncontrolling interest		(45	)		(22	)		(13	)		27			(12	)		(30	)		(25	)		(11	)		(16	)		(40	)		(8	)
Preferred stock dividends		—			—			—			—			—			—			(5	)		(13	)		(13	)		(12	)		(13	)

Net income (loss) applicable to shareholders of The Bank of New York Mellon Corporation	$	625		$	735		$	651		$	505		$	619		$	466		$	720		$	622		$	(266	)	$	833		$	967


Earnings Per Share (a)	$	0.50		$	0.59		$	0.53		$	0.42		$	0.52		$	0.39		$	0.61		$	0.53		$	(0.23	)	$	0.71		$	0.82

Assets under management at period-end (in billions) (c)	$	1,229		$	1,274		$	1,198		$	1,260		$	1,308		$	1,299		$	1,359		$	1,386		$	1,429		$	1,432		$	1,532	(b)
Assets under custody and/or administration at period-end (in trillions) (d)(e)		N/A			N/A			N/A		$	25.1		$	25.7		$	25.2		$	26.4		$	26.3		$	26.3		$	26.2		$	27.4	(b)

Market value of securities on loan at period-end (in billions) (f)	$	268		$	266		$	249		$	266		$	256		$	267		$	251		$	237		$	244		$	255		$	255

Pre-tax operating margin
GAAP		26	%		27	%		26	%		19	%		24	%		16	%		27	%		24	%		22	%		30	%		26	%
Non-GAAP adjusted (g)		30	%		31	%		31	%		28	%		30	%		29	%		29	%		27	%		26	%		32	%		29	%
Return on common equity (annualized)
GAAP		7.7	%		8.8	%		7.6	%		5.9	%		7.4	%		5.5	%		8.3	%		7.1	%		N/M			9.7	%		11.2	%
Return on tangible common equity (annualized):
Non-GAAP		24.3	%		26.3	%		22.1	%		17.7	%		21.0	%		15.7	%		22.1	%		18.8	%		N/M			25.0	%		28.4	%
Percent of non-US fee and net interest revenue - GAAP		36	%		37	%		39	%		34	%		36	%		37	%		37	%		35	%		35	%		36	%		38	%
Percent of non-US fee and net interest revenue - Non-GAAP (h)		37	%		37	%		39	%		34	%		37	%		37	%		37	%		36	%		35	%		36	%		39	%

(a)

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 U.S. Tax Court’s partial reconsideration of a tax decision.

(b)

Preliminary.

(c)

Excludes assets managed in the Investment Services business.

(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, $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.

(e)

For the first quarter 2011, second quarter 2011 and third quarter 2011, restated AUC/A not available.

(f)

Represents the total amount of securities on loan managed by the Investment Services business. Excludes securities on loan at CIBC Mellon.

(g)

Calculated excluding M&I expenses, restructuring charges, litigation expense, amortization of intangible assets and noncontrolling interest related to consolidated asset management funds.

(h)

Calculated excluding net securities gains (losses) and including noncontrolling interest related to consolidated asset management funds.

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

N/M - Not meaningful

N/A - Not available

Page 2 of 14

THE BANK OF NEW YORK MELLON CORPORATION

FEE AND OTHER REVENUE - 11 Quarter Trend

2011

2012

2013

(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

3rd Qtr

Investment services fees:

Asset servicing

880

911

881

842

894

891

893

904

930

938

929

Securities lending

Issuer services

351

365

442

287

251

275

311

215

237

294

322

Memo: Issuer Services excluding Shareowner Services

292

314

400

245

251

275

311

215

237

294

322

Clearing services

292

297

278

303

309

287

294

304

321

315

Treasury services

134

133

134

136

134

138

141

139

137

Total investment services fees

1,694

1,764

1,794

1,584

1,633

1,668

1,678

1,595

1,651

1,742

1,738

Investment management and performance fees

764

779

729

730

745

797

779

853

822

848

821

Foreign exchange & other trading revenue

198

222

200

228

191

180

182

139

161

207

160

Distribution and servicing

Financing-related fees

Investment and other income

145

146

139

124

116

269

135

Total fee revenue (a)

2,833

3,008

2,889

2,768

2,798

2,776

2,857

2,800

2,796

3,155

2,941

Net securities gains (losses)

)

Total fee and other revenue - Non-GAAP

2,838

3,056

2,887

2,765

2,838

2,826

2,879

2,850

2,844

3,187

2,963

Less: Fee and Other revenue related to Shareowner Services

142

—

)

—

Total fee and other revenue ex Shareowner Services - Non-GAAP

2,776

3,002

2,843

2,623

2,838

2,829

2,879

2,850

2,844

3,187

2,963

Fee and other revenue as a percentage of total

revenue - Non-GAAP (b)

Assets under management at period-end

(in billions) (d)

1,229

1,274

1,198

1,260

1,308

1,299

1,359

1,386

1,429

1,432

1,532

(c)

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

N/A

25.1

25.7

25.2

26.4

26.3

26.2

27.4

(c)

Market value of securities on loan at period-end

(in billions) (g)

268

266

249

266

256

267

251

237

244

255

S&P 500 Index - period-end

1326

1321

1131

1258

1408

1362

1441

1426

1569

1606

1682

S&P 500 Index - daily average

1302

1318

1227

1224

1347

1351

1400

1419

1513

1609

1674

(a)

The Shareowner Services business was sold on December 31, 2011.

(b)

Excludes net securities gains/(losses).

(c)

Preliminary.

(d)

Excludes assets managed in the Investment Services business.

(e)

(f)

For the first quarter 2011, second quarter 2011 and third quarter 2011, restated AUC/A not available.

(g)

Represents the total amount of securities on loan managed by the Investment Services business. Excludes securities on loan at CIBC Mellon.

N/A - Not available

Page 3 of 14

THE BANK OF NEW YORK MELLON CORPORATION

Average Balances and Interest Rates

2011

2012

March 31st

June 30th

September 30th

December 31st

March 31st

(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)

57,637

0.90

59,291

0.98

60,412

1.00

43,628

1.08

35,095

1.30

Interest-bearing deposits with Federal Reserve & other essential banks

20,367

0.32

34,068

0.32

61,115

0.31

72,118

0.32

63,526

0.27

Federal funds sold and securities under resale agreements

4,514

0.50

4,577

0.46

4,865

0.71

5,271

0.64

5,174

0.73

Margin loans

7,484

1.48

9,508

1.34

9,379

1.34

11,886

1.26

12,901

1.29

Non-margin loans:

Domestic offices

21,856

2.57

21,093

2.54

21,583

2.43

21,794

2.37

20,128

2.46

Foreign offices

9,226

1.44

9,727

1.53

9,527

1.52

10,556

1.54

10,180

1.77

Total non-margin loans

31,082

2.22

30,820

2.23

31,110

2.15

32,350

2.10

30,308

2.23

Securities

U.S. government obligations

12,849

1.61

14,337

1.63

14,079

1.57

18,693

1.45

17,268

1.56

U.S. government agency obligations

20,221

2.98

20,466

3.09

20,998

2.93

25,006

2.58

32,347

2.44

Obligations of states and political subdivisions

557

6.37

934

5.32

1,611

4.13

2,452

3.47

3,354

2.97

Other securities

31,770

3.43

33,045

3.25

34,175

3.30

33,830

3.19

33,839

2.84

Trading securities

3,698

2.44

2,877

2.44

2,509

2.62

2,490

2.94

2,519

2.78

Total securities

69,095

2.96

71,659

2.87

73,372

2.87

82,471

2.60

89,327

2.45

Total interest-earning assets

190,179

1.80

209,923

1.70

240,253

1.55

247,724

1.50

236,331

1.56

Allowance for credit losses

(494

)

(463

)

(437

)

(384

)

(392

)

Cash and due from banks

4,094

4,335

5,204

4,695

4,271

Other assets

49,577

50,459

53,305

52,200

49,690

Total Asset Consol VIE FAS 167

14,342

14,226

13,138

11,839

11,444

Total Assets

257,698

278,480

311,463

316,074

301,344

Liabilities and total equity

Interest-bearing liabilities:

Money market rate accounts and demand deposit accounts

5,499

0.37

4,114

0.42

4,611

0.35

4,749

0.27

4,446

0.28

Savings

1,518

0.12

1,561

0.12

1,613

0.12

1,080

0.15

704

0.10

Other time deposits

32,119

0.10

34,853

0.09

35,991

0.07

36,020

0.07

33,618

0.08

Foreign offices

77,379

0.19

85,430

0.26

83,580

0.26

88,494

0.22

86,670

0.15

Total interest-bearing deposits

116,515

0.17

125,958

0.22

125,795

0.21

130,343

0.18

125,438

0.14

Federal funds purchased and securities under repurchase agreements

5,172

0.07

10,894

0.06

10,164

0.03

8,008

(0.07

)

8,584

(0.02

)

Trading Liabilities

2,764

1.86

1,524

2.35

1,911

1.25

1,225

1.62

1,153

1.55

Other borrowed funds

1,821

1.61

1,877

0.99

2,256

0.77

2,159

0.93

2,579

0.79

Payables to customers and broker-dealers

6,701

0.10

6,843

0.09

7,692

0.10

8,023

0.08

7,555

0.11

Long-term debt

17,014

1.87

17,380

1.63

18,256

1.60

19,546

1.55

20,538

1.79

Total interest-bearing liabilities

149,987

0.40

164,476

0.38

166,074

0.37

169,304

0.34

165,847

0.34

Total noninterest-bearing deposits

38,616

43,038

73,389

76,309

66,613

Other liabilities

22,350

23,694

25,462

25,433

24,248

VIE Liabilities & Obligations FAS 167

13,114

12,966

11,728

10,516

10,159

Total Shareholders’ Equity

32,827

33,464

34,008

33,761

33,718

Noncontrolling interest

804

842

802

752

759

Total liabilities and shareholders’ equity

257,698

278,480

311,463

316,074

301,344

Net interest margin - Taxable equivalent basis

1.49

1.41

1.30

1.27

1.32

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)

2012

2013

June 30th

September 30th

December 31st

March 31st

June 30th

September 30th

(dollar amounts in millions)

Average
balance

Average
rates

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)

38,474

0.98

41,201

0.96

41,018

0.80

40,967

0.70

42,772

0.64

41,597

0.66

Interest-bearing deposits with Federal Reserve & other essential banks

57,904

0.27

61,849

0.21

71,794

0.21

63,240

0.20

55,911

0.22

65,704

0.23

Federal funds sold and securities under resale agreements

5,493

0.62

5,315

0.64

5,984

0.56

7,478

0.54

7,878

0.52

8,864

0.56

Margin loans

13,331

1.27

13,033

1.30

13,085

1.26

13,346

1.17

13,906

1.14

14,653

1.10

Non-margin loans:

Domestic offices

19,663

2.52

18,821

2.62

20,560

2.42

21,358

2.38

21,689

2.40

21,378

2.40

Foreign offices

9,998

1.86

10,574

1.61

9,968

1.64

11,575

1.36

12,318

1.32

12,225

1.31

Total non-margin loans

29,661

2.30

29,395

2.26

30,528

2.16

32,933

2.02

34,007

2.01

33,603

2.01

Securities

U.S. government obligations

15,387

1.65

18,917

1.39

19,915

1.39

18,814

1.54

19,887

1.62

16,540

1.76

U.S. government agency obligations

39,070

2.23

41,430

1.94

41,361

1.94

42,397

1.85

47,631

1.80

45,745

2.02

Obligations of states and political subdivisions

4,777

2.65

5,933

2.57

6,154

2.52

6,194

2.38

6,377

2.26

6,518

2.47

Other securities

32,625

2.51

33,724

2.51

35,082

2.04

34,507

2.03

33,243

1.93

32,403

1.92

Trading securities

3,033

2.57

4,431

2.40

5,294

2.54

5,878

2.40

6,869

2.33

5,523

2.83

Total securities

94,892

2.25

104,435

2.06

107,806

1.90

107,790

1.91

114,007

1.86

106,729

2.02

Total interest-earning assets

239,755

1.48

255,228

1.40

270,215

1.27

265,754

1.26

268,481

1.27

271,150

1.28

Allowance for credit losses

(382

)

(361

)

(337

)

(264

)

(237

)

(212

)

Cash and due from banks

4,412

4,277

4,284

4,534

5,060

6,400

Other assets

49,933

48,775

50,439

52,137

52,620

52,549

Total Asset Consol VIE FAS 167

11,284

10,995

11,394

11,503

11,524

11,863

Total Assets

305,002

318,914

335,995

333,664

337,448

341,750

Liabilities and total equity

Interest-bearing liabilities:

Money market rate accounts and demand deposit accounts

8,421

0.24

9,724

0.16

8,570

0.18

8,778

0.19

8,183

0.22

8,626

0.16

Savings

702

0.13

730

0.17

815

0.29

819

0.29

897

0.24

1,015

0.25

Other time deposits

33,180

0.11

34,193

0.07

38,085

0.06

39,091

0.05

41,706

0.04

41,546

0.04

Foreign offices

88,179

0.13

93,613

0.10

95,249

0.09

99,040

0.08

100,433

0.07

102,360

0.07

Total interest-bearing deposits

130,482

0.13

138,260

0.10

142,719

0.09

147,728

0.08

151,219

0.07

153,547

0.06

Federal funds purchased and securities under repurchase agreements

11,254

0.01

10,092

(0.06

)

10,158

0.07

9,187

(0.12

)

9,206

(0.28

)

12,164

(0.12

)

Trading Liabilities

1,256

1.87

1,397

1.87

1,943

1.41

2,552

1.35

3,036

1.40

2,325

1.69

Other borrowed funds

2,550

0.99

1,855

0.72

1,869

1.29

1,397

0.76

1,443

0.19

2,233

0.19

Payables to customers and broker-dealers

7,895

0.10

8,141

0.10

8,532

0.09

9,019

0.09

9,073

0.08

8,659

0.09

Long-term debt

20,084

1.67

19,535

1.66

19,259

1.46

18,878

1.18

19,002

0.94

19,025

1.00

Total interest-bearing liabilities

173,521

0.32

179,280

0.28

184,480

0.25

188,761

0.20

192,979

0.16

197,953

0.16

Total noninterest-bearing deposits

62,860

70,230

79,987

70,337

70,648

72,075

Other liabilities

23,588

23,712

24,458

27,416

26,772

24,380

VIE Liabilities & Obligations FAS 167

10,072

9,686

10,114

10,186

10,242

10,466

Total Shareholders’ Equity

34,123

34,522

36,028

35,966

35,817

35,826

Noncontrolling interest

838

1,484

928

998

990

1,050

Total liabilities and total equity

305,002

318,914

335,995

333,664

337,448

341,750

Net interest margin - Taxable equivalent basis

1.25

1.20

1.09

1.11

1.15

1.16

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 - 11 Quarter Trend

2011

2012

2013

(dollar amounts in millions)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

1st Qtr

2nd Qtr

3rd Qtr

Staff:

Compensation

876

903

885

861

866

893

911

885

891

915

Incentives

325

328

281

352

311

306

311

338

364

339

Employee benefits

223

232

226

216

240

238

237

235

249

254

262

Total staff

1,424

1,463

1,457

1,382

1,453

1,415

1,436

1,457

1,472

1,509

1,516

Professional, legal and other purchased services

283

301

311

322

299

309

292

322

295

317

296

Software and equipment

206

203

193

213

205

209

208

233

228

238

226

Net occupancy

153

161

151

159

147

141

149

156

163

159

153

Distribution and servicing

111

109

100

101

103

109

108

106

111

108

Business development

Sub-custodian

Other

229

247

224

237

220

254

265

255

307

215

249

Subtotal (a)

2,530

2,645

2,573

2,546

2,551

2,572

2,584

2,683

2,703

2,716

2,682

Amortization of intangible assets

108

106

Merger & integration, litigation and restructuring charges

176

109

378

Total noninterest expense

2,697

2,816

2,771

2,828

2,756

3,047

2,705

2,825

2,828

2,822

2,779

Memo:

Total noninterest expense excluding M&I, litigation, restructuring, amortization of intangible assets and direct expense related to Shareowner Services – Non-GAAP

2,484

2,598

2,536

2,500

2,551

2,572

2,584

2,683

2,703

2,716

2,682

Full Time Employees at period-end

48,400

48,900

49,600

48,700

47,800

48,300

48,700

49,500

49,700

49,800

50,800

(a)

The Shareowner Services business was sold on December 31, 2011.

Page 6 of 14

THE BANK OF NEW YORK MELLON CORPORATION

ASSETS UNDER MANAGEMENT, CUSTODY AND/OR ADMINISTRATION AND SECURITIES LENDING - 11 Quarter Trend


	2011												2012												2013
(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			3rd Qtr
Assets under management at period-end (in billions) (a)
Institutional	$	701		$	733		$	719		$	757		$	829		$	835		$	882		$	894		$	939		$	968		$	1,041
Mutual Funds		451			462			406			427			404			388			398			411			405			378		$	407
Private Client		77			79			73			76			75			76			79			81			85			86		$	84

Assets under management (b)	$	1,229		$	1,274		$	1,198		$	1,260		$	1,308		$	1,299		$	1,359		$	1,386		$	1,429		$	1,432		$	1,532	(e)
Composition of assets under management at period-end
Equity		34	%		34	%		30	%		31	%		33	%		32	%		33	%		33	%		34	%		35	%		35	%
Fixed Income		30	%		31	%		35	%		35	%		35	%		37	%		37	%		38	%		39	%		39	%		39	%
Money Market		27	%		26	%		27	%		26	%		24	%		23	%		23	%		22	%		20	%		19	%		19	%
Alternative investments and overlay		9	%		9	%		8	%		8	%		8	%		8	%		7	%		7	%		7	%		7	%		7	%

Total AUM (b)		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%(e)
Assets under custody and/or administration at period-end (in trillions) (c)(d)		N/A			N/A			N/A		$	25.1		$	25.7		$	25.2		$	26.4		$	26.3		$	26.3		$	26.2		$	27.4	(e)
Market value of securities on loan at period-end (f)	$	268		$	266		$	249		$	266		$	256		$	267		$	251		$	237		$	244		$	255		$	255
Market Indices
S&P 500 Index (g)		1326			1321			1131			1258			1408			1362			1441			1426			1569			1606			1682
S&P 500 Index-daily average		1302			1318			1227			1224			1347			1351			1400			1419			1513			1609			1674
FTSE 100 Index (g)		5909			5946			5128			5572			5768			5571			5742			5898			6412			6215			6462
FTSE 100 Index-daily average		5945			5906			5470			5424			5818			5555			5742			5842			6294			6438			6525
MSCI World Index (g)		1335			1331			1104			1183			1312			1236			1312			1339			1435			1434			1544
MSCI World Index-daily average		1319			1332			1217			1169			1268			1235			1273			1312			1404			1463			1510
Barclays Capital Aggregate Bond^SMIndex (g)		328			341			346			347			351			353			368			366			356			343			356
NYSE & NASDAQ Share Volume (in billions)		225			213			250			206			186			192			173			174			174			186			166
JP Morgan G7 Volatility Index-daily average (h)		11.07			11.21			12.60			12.95			10.39			10.30			8.70			7.56			9.02			9.84			9.72

(a)

Excludes securities lending cash management assets.

(b)

Excludes assets managed in the Investment Services business.

(c)

(d)

For the first quarter 2011, second quarter 2011 and third quarter 2011, restated AUC/A not available.

(e)

Preliminary.

(f)

Represents the total amount of securities on loan managed by the Investment Services business. Excludes securities on loan at CIBC Mellon.

(g)

Period end.

(h)

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

N/A - Not available

Page 7 of 14

THE BANK OF NEW YORK MELLON CORPORATION

ASSETS UNDER MANAGEMENT NET FLOWS - 11 Quarter Trend


	2011											2012											2013
(dollar amounts in billions )	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr		1st Qtr			2nd Qtr			3rd Qtr		4th Qtr			1st Qtr			2nd Qtr			3rd Qtr
Assets under management at beginning of period	$	1,172		$	1,229		$	1,274		$	1,198	$	1,260		$	1,308		$	1,299	$	1,359		$	1,386		$	1,429		$	1,432
Net flows inflows (outflows):
Long-term		31			32			4			16		7			26			9		14			40			21			32
Money market		(5	)		(1	)		(15	)		7		(9	)		(14	)		9		(6	)		(13	)		(1	)		13

Total net inflows (outflows)		26			31			(11	)		23		(2	)		12			18		8			27			20			45
Net market / currency impact		31			14			(65	)		39		50			(21	)		42		19			16			(17	)		55


Assets under management at end of period (a)(b)	$	1,229		$	1,274		$	1,198		$	1,260	$	1,308		$	1,299		$	1,359	$	1,386		$	1,429		$	1,432		$	1,532	(c)

(a)

Excludes securities lending cash management assets.

(b)

Excludes assets managed in the Investment Services business.

(c)

Preliminary.

Page 8 of 14

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT MANAGEMENT BUSINESS - 11 Quarter Trend


	2011												2012												2013
(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			3rd Qtr
Revenue:
Investment management fees:
Mutual funds	$	283		$	290		$	263		$	237		$	260		$	270		$	283		$	293		$	295		$	295		$	289
Institutional clients		319			319			311			299			322			321			334			349			355			360			362
Wealth management fees		161			161			153			153			154			156			154			157			161			165			164

Total investment management fees		763			770			727			689			736			747			771			799			811			820			815
Performance fees		17			18			11			47			16			54			10			57			15			33			10
Distribution and servicing		51			48			41			41			45			45			47			50			46			44			41
Other (a)		34			24			(25	)		(13	)		52			12			41			25			19			25			54

Total fee and other revenue		865			860			754			764			849			858			869			931			891			922			920
Net interest revenue		52			48			50			54			55			52			51			56			62			63			67

Total revenue		917			908			804			818			904			910			920			987			953			985			987
Provision for credit losses		—			1			—			—			—			—			—			—			—			—			—
Noninterest expenses (ex. intangible amortization)		629			643			624			634			620			642			644			713			704			674			697

Income before taxes (ex. intangible amortization)		288			264			180			184			284			268			276			274			249			311			290
Amortization of intangible assets		55			54			52			52			48			48			48			48			39			39			35

Income before taxes	$	233		$	210		$	128		$	132		$	236		$	220		$	228		$	226		$	210		$	272		$	255
Average assets	$	36,962		$	36,415		$	36,626		$	36,782		$	36,112		$	35,603		$	35,285		$	37,474		$	38,743		$	37,953		$	38,690
Assets under management at period-end (in billions) (b)	$	1,229		$	1,274		$	1,198		$	1,260		$	1,308		$	1,299		$	1,359		$	1,386		$	1,429		$	1,432		$	1,532	(c)
Pre-tax operating margin:
GAAP		25	%		23	%		16	%		16	%		26	%		24	%		25	%		23	%		22	%		28	%		26	%
Non-GAAP (ex. intangible amortization and net distribution and servicing expense) (d)		36	%		33	%		26	%		26	%		35	%		33	%		34	%		31	%		29	%		36	%		33	%

(a)

Other revenue includes asset servicing and treasury services revenue

(b)

Excludes securities lending cash management assets. Excludes assets managed in the Investment Services business.

(c)

Preliminary.

(d)

Distribution and servicing expense is netted with distribution and servicing revenue for the purpose of this calculation of pre-tax operating margin. Distribution and servicing expense totaled $110 million, $108 million, $99 million and $95 million, respectively, for the first through fourth quarters of 2011, $100 million, $102 million, $107 million and $106 million, respectively, for the first through fourth quarters of 2012 and $104 million, $110 million and $107 million, respectively, for the first three quarters of 2013.

Page 9 of 14

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT SERVICES BUSINESS - 11 Quarter Trend


	2011												2012												2013
(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			3rd Qtr
Revenue:
Investment services fees
Asset servicing fees - ex. securities lending	$	863		$	891		$	862		$	823		$	876		$	871		$	876		$	885		$	912		$	922		$	913
Securities lending revenue		27			52			32			35			39			48			37			31			31			39			26
Issuer services		292			314			401			245			251			275			310			213			236			294			321
Clearing services		292			292			297			278			303			309			287			294			304			321			315
Treasury services		128			129			128			128			131			129			131			136			137			135			135

Total investment services fees		1,602			1,678			1,720			1,509			1,600			1,632			1,641			1,559			1,620			1,711			1,710
Foreign Exchange and other trading revenue		209			204			235			197			176			179			158			128			172			194			173
Other (a)		77			82			71			72			74			69			77			75			70			66			64

Total fee and other revenue (a)		1,888			1,964			2,026			1,778			1,850			1,880			1,876			1,762			1,862			1,971			1,947
Net interest revenue		623			649			662			634			642			607			608			583			653			633			619

Total revenue		2,511			2,613			2,688			2,412			2,492			2,487			2,484			2,345			2,515			2,604			2,566
Provision for credit losses		—			—			—			—			16			(14	)		(4	)		—			1			—			—
Noninterest expenses (ex. intangible amortization)		1,709			1,780			1,843			1,701			1,786			2,093			1,732			1,769			1,796			1,826			1,766

Income before taxes (ex. intangible amortization)		802			833			845			711			690			408			756			576			718			778			800
Amortization of intangible assets		50			50			50			50			48			49			47			48			47			54			46

Income before taxes	$	752		$	783		$	795		$	661		$	642		$	359		$	709		$	528		$	671		$	724		$	754
Average loans	$	21,912		$	23,939		$	23,745		$	27,651		$	26,630		$	25,611		$	24,917		$	24,868		$	26,697		$	27,814		$	27,865
Average assets	$	177,028		$	192,516		$	221,680		$	229,371		$	214,593		$	210,064		$	224,987		$	243,053		$	240,188		$	244,803		$	246,254
Average deposits	$	140,213		$	154,611		$	182,555		$	189,203		$	175,526		$	173,087		$	188,743		$	204,164		$	200,221		$	204,499		$	206,068
Pre-tax operating margin:
GAAP		30	%		30	%		30	%		27	%		26	%		14	%		29	%		23	%		27	%		28	%		29	%
Non-GAAP adjusted (ex. intangible amortization)		32	%		32	%		31	%		29	%		28	%		16	%		30	%		25	%		29	%		30	%		31	%
Assets under custody and/or administration at period-end (in trillions) (b)(c)		N/A			N/A			N/A		$	25.1		$	25.7		$	25.2		$	26.4		$	26.3		$	26.3		$	26.2		$	27.4	(d)
Market value of securities on loan at period-end (in billions) (e)	$	268		$	266		$	249		$	266		$	256		$	267		$	251		$	237		$	244		$	255		$	255

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)

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

(b)

(c)

For the first quarter 2011, second quarter 2011 and third quarter 2011, restated AUC/A not available.

(d)

Preliminary.

(e)

Represents the total amount of securities on loan managed by the Investment Services business. Excludes securities on loan at CIBC Mellon.

N/A - Not available

Page 10 of 14

THE BANK OF NEW YORK MELLON CORPORATION

OTHER SEGMENT- 11 Quarter Trend


	2011												2012												2013
(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			3rd Qtr

Revenue:
Fee and other revenue	$	151		$	274		$	126		$	246		$	171		$	116		$	156		$	188		$	125		$	320		$	120
Net interest revenue		23			34			63			92			68			75			90			86			4			61			86

Total revenue		174			308			189			338			239			191			246			274			129			381			206
Provision for credit loss		—			(1	)		(22	)		23			(11	)		(5	)		(1	)		(61	)		(25	)		(19	)		2
Noninterest expense (ex. M&I, restructuring charges and intangible amortization)		240			267			186			248			245			193			221			220			237			226			221

Income (loss) before taxes (ex. M&I, restructuring charges and intangible amortization)		(66	)		42			25			67			5			3			26			115			(83	)		174			(17	)
Amortization of intangible assets		3			4			4			4			—			—			—			—			—			—			—

M&I and restructuring charges		11			18			12			139			9			22			13			27			5			3			14

Income (loss) before taxes	$	(80	)	$	20		$	9		$	(76	)	$	(4	)	$	(19	)	$	13		$	88		$	(88	)	$	171		$	(31	)

Average loans and leases	$	9,829		$	9,505		$	9,786		$	9,376		$	9,148		$	9,618		$	9,389		$	10,267		$	10,610		$	10,846		$	10,938
Average assets	$	43,708		$	49,549		$	53,157		$	49,921		$	50,639		$	59,335		$	58,642		$	55,468		$	54,733		$	54,699		$	59,806

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)	2012			2011			2010			2012			2011			2010			2012			2011			2010			2012			2011			2010(a)
Revenue:
Investment services fees
Asset servicing	$	117		$	112		$	94		$	3,663		$	3,585		$	2,981		$	—		$	—		$	1		$	3,780		$	3,697		$	3,076
Issuer services		—			—			—			1,049			1,252			1,259			3			193			201			1,052			1,445			1,460
Clearing services		—			—			—			1,193			1,159			1,005			—			—			—			1,193			1,159			1,005
Treasury services		2			2			3			527			513			507			20			20			20			549			535			530

Total investment services fees		119			114			97			6,432			6,509			5,752			23			213			222			6,574			6,836			6,071
Investment management fees		3,053			2,949			2,820			66			64			46			—			2			4			3,119			3,015			2,870
Performance fees		137			93			122			—			1			1			(1	)		—			—			136			94			123
Foreign exchange and other trading revenue		9			(1	)		10			641			845			855			42			4			21			692			848			886
Distribution and servicing		187			181			201			5			6			8			—			—			1			192			187			210
Financing-related fees		6			6			6			42			46			45			124			118			144			172			170			195
Investment and other income		(3	)		(100	)		(90	)		171			185			256			291			413			343			459			498			509

Total fee revenue		3,508			3,242			3,166			7,357			7,656			6,963			479			750			735			11,344	(b)		11,648	(b)		10,864	(b)
Net securities gains (losses)		(1	)		1			12			11			—			—			152			47			15			162			48			27

Total fee and other revenue		3,507			3,243			3,178			7,368			7,656			6,963			631			797			750			11,506	(b)		11,696	(b)		10,891	(b)
Net interest revenue (expense)		214			204			202			2,440			2,568			2,380			319			212			343			2,973			2,984			2,925

Total revenue		3,721			3,447			3,380			9,808			10,224			9,343			950			1,009			1,093			14,479			14,680			13,816
Provision for credit losses		—			1			3			(2	)		—			—			(78	)		—			8			(80	)		1			11
Noninterest expenses (ex. M&I, litigation and restructuring charges and intangible amortization)		2,619			2,530			2,418			7,380			7,033			6,138			879			941			1,026			10,878			10,504			9,582

Income before taxes (ex. M&I, litigation and restructuring charges and intangible amortization)		1,102			916			959			2,430			3,191			3,205			149			68			59			3,681	(b)		4,175	(b)		4,223	(b)
Amortization of intangible assets		192			213			236			192			200			170			—			15			15			384			428			421
M&I, litigation and restructuring charges		—			—			—			—			—			—			71			180			167			71			180			167

Income before taxes and noncontrolling interest	$	910		$	703		$	723		$	2,238		$	2,991		$	3,035		$	78		$	(127	)	$	(123	)	$	3,226	(b)	$	3,567	(b)	$	3,635	(b)
Average loans	$	7,950		$	6,970		$	6,461		$	25,503		$	24,326		$	18,234		$	9,607		$	9,623		$	11,610		$	43,060		$	40,919		$	36,305
Average assets	$	36,120		$	36,696		$	35,102		$	223,233		$	205,337		$	159,867		$	56,028		$	49,112		$	42,467		$	315,381		$	291,145		$	237,436	(c)
Average deposits	$	11,311		$	9,769		$	7,937		$	185,440		$	166,823		$	126,151		$	7,459		$	6,087		$	5,350		$	204,210		$	182,679		$	139,438
Assets under management at period-end (in billions) (d)	$	1,386		$	1,260		$	1,172		$	—		$	—		$	—		$	—		$	—		$	—		$	1,386		$	1,260		$	1,172
Assets under custody and/or administration at period-end (in trillions) (e)	$	—		$	—		$	—		$	26.3		$	25.1		$	24.0		$	—		$	—		$	—		$	26.3		$	25.1		$	24.0
Market value of securities on loan at period-end (in billions) (f)	$	—		$	—		$	—		$	237		$	266		$	269		$	—		$	—		$	—		$	237		$	266		$	269
Pre-tax operating margin - GAAP		24	%		20	%		21	%		23	%		29	%		32	%		N/M			N/M			N/M			22	%		24	%		26	%
Memo:
Securities Lending Revenue																													198			183			150

(a)

Continuing operations.

(b)

Total fee and other revenue and income before taxes for the years 2010, 2011 and 2012 includes income from consolidated investment management funds of $226 million, $200 million and $189 million, respectively, net of income attributable to noncontrolling interests of $59 million, $50 million, and $76 million, respectively. The net of these income statement line items of $167 million, $150 million, and $113 million, respectively, are included above in fee and other revenue.

(c)

Including average assets of discontinued operations of $404 million in 2010, consolidated average assets were $237,840 million.

(d)

Excludes assets managed in the Investment Services business.

(e)

(f)

Represents the total amount of securities on loan managed by the Investment Services business. Excludes securities on loan at CIBC Mellon.

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 - 11 Quarter Trend


	2011												2012												2013
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr

Loans:
Other residential mortgages	$	245		$	236		$	228		$	203		$	188		$	177		$	166		$	158		$	148		$	135		$	128
Wealth Management		56			31			32			32			35			35			33			30			30			13			12
Commercial real estate		36			28			28			40			39			30			29			18			17			18			4
Commercial		32			31			21			21			32			31			29			27			24			24			15
Foreign		7			13			13			10			10			9			9			9			9			9			9
Financial Institutions		4			4			12			23			14			3			3			3			3			2			1


Total nonperforming loans		380			343			334			329			318			285			269			245			231			201			169
Other assets owned		6			8			10			12			13			9			5			4			3			3			3

Total nonperforming assets (a)	$	386		$	351		$	344		$	341		$	331		$	294		$	274		$	249		$	234		$	204		$	172


Nonperforming assets ratio		0.96	%		0.83	%		0.76	%		0.78	%		0.77	%		0.65	%		0.60	%		0.53	%		0.48	%		0.41	%		0.34	%
Nonperforming assets ratio excluding margin loans		1.26	%		1.08	%		0.98	%		1.09	%		1.11	%		0.92	%		0.83	%		0.74	%		0.65	%		0.57	%		0.49	%

Allowance for loan losses/nonperforming loans		122.9			128.6			117.4			119.8			121.4			127.0			126.0			108.6			102.6			105.5			121.9
Allowance for loan losses/nonperforming assets		121.0			125.6			114.0			115.5			116.6			123.1			123.7			106.8			101.3			103.9			119.8
Total allowance for credit losses/nonperforming loans		145.8			156.0			149.1			151.1			155.3			163.9			169.5			158.0			155.0			167.7			200.6
Total allowance for credit losses/nonperforming assets		143.5			152.4			144.8			145.7			149.2			158.8			166.4			155.4			153.0			165.2			197.1

(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 for the 1st, 2nd, 3rd and 4th quarters of 2011 of $239 million, $216 million, $265 million, and $101 million, respectively, for the 1st, 2nd, 3rd and 4th quarters of 2012 of $180 million, $155 million, $153 million, and $174 million, respectively, and for the 1st through 3rd quarters of 2013 of $161 million, $44 million, and $31 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 - 11 Quarter Trend


	2011												2012												2013
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr

Allowance for credit losses:
Allowance for credit losses	$	498		$	467		$	441		$	392		$	394		$	386		$	362		$	339		$	266		$	237		$	212
Allowance for unfunded commitments		73			87			94			106			103			108			105			117			121			121			125

Allowance for credit losses – beginning of period		571			554			535			498			497			494			467			456			387			358			337

Net (charge-offs)
Charge-offs		(19	)		(21	)		(17	)		(25	)		(10	)		(10	)		(8	)		(10	)		(5	)		(3	)		(2	)
Recoveries		2			2			2			1			2			2			2			2			—			1			2

Total Net (charge-offs)		(17	)		(19	)		(15	)		(24	)		(8	)		(8	)		(6	)		(8	)		(5	)		(2	)		—

Provision for credit losses		—			—			(22	)		23			5			(19	)		(5	)		(61	)		(24	)		(19	)		2

Allowance for credit losses – end of period		554			535			498			497			494			467			456			387			358			337			339

Allowance for loan losses	$	467		$	441		$	392		$	394		$	386		$	362		$	339		$	266		$	237		$	212		$	206
Allowance for unfunded commitments		87			94			106			103			108			105			117			121			121			125			133

Allowance for credit losses – end of period		554			535			498			497			494			467			456			387			358			337			339

Allowance for loan losses as a percentage of total loans		1.17	%		1.05	%		0.87	%		0.90	%		0.90	%		0.80	%		0.74	%		0.57	%		0.48	%		0.42	%		0.41	%

Page 14 of 14

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