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

Attached files

file	filename
8-K - FORM 8-K - Bank of New York Mellon Corp	form8-k_earningsxapril21.htm
EX-99.4 - EXHIBIT 99.4 - Bank of New York Mellon Corp	ex994quarterlyhighlights.htm
EX-99.3 - EXHIBIT 99.3 - Bank of New York Mellon Corp	ex993_keyfactsx1q16.htm
EX-99.1 - EXHIBIT 99.1 - Bank of New York Mellon Corp	ex991_earningsreleasex1q16.htm

The Bank of New York Mellon Corporation

Quarterly Financial Trends

April 21, 2016




Table of Contents



Consolidated Results		Page(s)

Consolidated Corporate Earnings - Quarterly Trend		3
Fee and Other Revenue		4
Average Balances and Interest Rates		5-6
Noninterest Expense		7
Assets Under Management, Custody and/or Administration and Securities Lending; Key Market Metrics		8
Assets Under Management Net Flows		9

Business Segment Results

Investment Management Business - Quarterly Trend		10
Investment Services Business - Quarterly Trend		11
Other Segment - Quarterly Trend		12
Full Year Trends		13


Nonperforming Assets		14
Allowance for Credit Losses, Provision and Net Charge-offs		15
Notes		16

THE BANK OF NEW YORK MELLON CORPORATION - CONSOLIDATED CORPORATE EARNINGS - 9 Quarter Trend



	2014												2015												2016
(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
Revenue:
Investment services fees
Asset servicing	$	1,009		$	1,022		$	1,025		$	1,019		$	1,038		$	1,060		$	1,057		$	1,032		$	1,040
Issuer services	229			231			315			193			232			234			313			199			244
Clearing services	325			326			337			347			344			347			345			339			350
Treasury services	136			141			142			145			137			144			137			137			131
Total investment services fees	1,699			1,720			1,819			1,704			1,751			1,785			1,852			1,707			1,765
Investment management and performance fees (a)	843			883			881			885			867			878			829			864			812
Foreign exchange & other trading revenue	136			130			153			151			229			187			179			173			175
Distribution and servicing	43			43			44			43			41			39			41			41			39
Financing-related fees	38			44			44			43			40			58			71			51			54
Investment and other income (a)(b)	102			142			890			78			60			104			59			93			105
Total fee revenue (a)(b)	2,861			2,962			3,831			2,904			2,988			3,051			3,031			2,929			2,950
Net securities gains (losses)	22			18			20			31			24			16			22			21			20
Total fee and other revenue (a)(b)	2,883			2,980			3,851			2,935			3,012			3,067			3,053			2,950			2,970
Income (loss) of consolidated investment management funds (a)	36			46			39			42			52			40			(22		)	16			(6		)
Net interest revenue	728			719			721			712			728			779			759			760			766
Total revenue (a)(b)	3,647			3,745			4,611			3,689			3,792			3,886			3,790			3,726			3,730
Provision for credit losses	(18		)	(12		)	(19		)	1			2			(6		)	1			163			10
Noninterest expenses	2,676			2,749			2,673			2,651			2,637			2,603			2,603			2,610			2,555
Amortization of intangible assets	75			75			75			73			66			65			66			64			57
Merger & integration, litigation and restructuring charges	(12		)	122			220			800			(3		)	59			11			18			17
Total noninterest expense	2,739			2,946			2,968			3,524			2,700			2,727			2,680			2,692			2,629
Income (loss) from continuing operations before taxes (b)	926			811			1,662			164			1,090			1,165			1,109			871			1,091
Provision for income taxes (b)	232			217			556			(93		)	280			276			282			175			283
Net income (loss) from continuing operations (b)	694			594			1,106			257			810			889			827			696			808
Net income (loss) attributable to noncontrolling interest (a)(c)	(20		)	(17		)	(23		)	(24		)	(31		)	(36		)	6			(3		)	9
Preferred stock dividends	(13		)	(23		)	(13		)	(24		)	(13		)	(23		)	(13		)	(56		)	(13		)
Net income (loss) applicable to common shareholders of The Bank of New York Mellon Corporation (b)	$	661		$	554		$	1,070		$	209		$	766		$	830		$	820		$	637		$	804
Earnings per share (b)(d)	$	0.57		$	0.48		$	0.93		$	0.18		$	0.67		$	0.73		$	0.74		$	0.57		$	0.73

Pre-tax operating margin - GAAP (a)	25		%	22		%	36		%	4		%	29		%	30		%	29		%	23		%	29		%
Non-GAAP (a)(e)	27		%	30		%	29		%	28		%	30		%	33		%	31		%	30		%	31		%
Return on common equity (annualized) - GAAP	7.4		%	6.1		%	11.6		%	2.2		%	8.8		%	9.4		%	9.1		%	7.1		%	9.2		%
Return on tangible common equity (annualized) - Non-GAAP	17.6		%	14.5		%	26.2		%	5.9		%	20.3		%	21.5		%	20.8		%	16.2		%	20.6		%
Percent of non-US total revenue (f)	37		%	38		%	43		%	35		%	36		%	36		%	37		%	34		%	33		%

(a) The first quarter of 2015 was restated to reflect the retrospective application of adopting new accounting guidance related to Consolidations (ASU 2015-02).
(b) 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).
(c) Primarily attributable to noncontrolling interests related to consolidated investment management funds.
(d) The second quarter of 2014 includes a $0.14 charge related to severance and certain investment management funds. The third quarter of 2014 includes a $0.27 gain related to the sale of an investment in Wing Hang Bank, $0.18 related to a gain on the sale of the One Wall Street building and a $0.16 charge related to litigation and restructuring. The fourth quarter of 2014 includes a $0.13 benefit primarily related to a tax carryback claim, and a $0.53 charge related to litigation and restructuring. The second quarter of 2015 includes a $0.03 charge related to litigation and restructuring. The fourth quarter of 2015 includes an $0.11 charge for the impairment charge related to a recent court decision, litigation and restructuring charges. The first quarter of 2016 includes a $0.01 charge related to litigation and restructuring.
(e) Non-GAAP excludes gain (loss) related to an equity investment, net (loss) income attributable to noncontrolling interests of consolidated investment management funds, the gains on the sales of our investment in Wing Hang Bank and the One Wall Street building, M&I, litigation and restructuring charges (recoveries), the impairment charge related to a prior court decision, a charge (recovery) related to investment management funds, net of incentives, amortization of intangible assets, and the benefit primarily related to a tax carryback claim, if applicable. See "Supplemental information - Explanation of GAAP and Non-GAAP financial measures" beginning on page 25 of the Quarterly Earnings Release dated April 21, 2016, for the first quarter of 2016 (the "Quarterly Earnings Release"), furnished as an exhibit to the Current Report on Form 8-K to which these Quarterly Financial Trends are furnished as an exhibit.
(f) Includes fee revenue, net interest revenue and (loss) income from consolidated investment management funds, net of net loss (income) attributable to noncontrolling interests.
Note: See pages 4 through 7 for additional details of revenue/expense items impacting consolidated results.
N/M - Not meaningful

THE BANK OF NEW YORK MELLON CORPORATION

FEE AND OTHER REVENUE - 9 Quarter Trend



	2014												2015												2016
(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
Investment services fees:
Asset servicing	$	971		$	976		$	988		$	982		$	995		$	1,011		$	1,019		$	986		$	990
Securities lending	38			46			37			37			43			49			38			46			50
Issuer services	229			231			315			193			232			234			313			199			244
Clearing services	325			326			337			347			344			347			345			339			350
Treasury services	136			141			142			145			137			144			137			137			131
Total investment services fees	1,699			1,720			1,819			1,704			1,751			1,785			1,852			1,707			1,765
Investment management and performance fees (a)	843			883			881			885			867			878			829			864			812
Foreign exchange and other trading revenue	136			130			153			151			229			187			179			173			175
Distribution and servicing	43			43			44			43			41			39			41			41			39
Financing-related fees	38			44			44			43			40			58			71			51			54
Investment and other income (a)	102			142			890			78			60			104			59			93			105
Total fee revenue (a)	$	2,861		$	2,962		$	3,831		2,904			2,988			3,051			3,031			2,929			2,950
Net securities gains	22			18			20			31			24			16			22			21			20
Total fee and other revenue (a)	$	2,883		$	2,980		$	3,851		$	2,935		$	3,012		$	3,067		$	3,053		$	2,950		$	2,970
Fee revenue as a percentage of total revenue - excluding net securities gains	79		%	79		%	83		%	79		%	79		%	79		%	80		%	79		%	79		%

(a) The first quarter of 2015 was restated to reflect the retrospective application of adopting new accounting guidance related to Consolidations (ASU 2015-02).

THE BANK OF NEW YORK MELLON CORPORATION - Average Balances and Interest Rates



	2014
(dollar amounts in millions)	March 31					June 30					Sept. 30					Dec. 31
	Average balance			Average rate		Average balance			Average rate		Average balance			Average rate		Average balance			Average rate
Assets	Average balance			Average rate		Average balance			Average rate		Average balance			Average rate		Average balance			Average rate
Interest-earning assets:
Interest-bearing deposits with banks (primarily foreign)	$	41,617		0.71	%	$	41,424		0.74	%	$	34,882		0.66	%	$	24,623		0.49	%
Interest-bearing deposits with Federal Reserve & other central banks	74,399			0.25		85,546			0.26		88,713			0.23		97,440			0.22
Federal funds sold and securities purchased under resale agreements	11,118			0.61		13,387			0.58		15,683			0.61		18,536			0.56
Margin loans	15,840			1.07		17,050			1.05		18,108			1.04		18,897			1.01
Non-margin loans:
Domestic offices	22,002			2.31		22,566			2.30		23,826			2.20		25,103			2.20
Foreign offices	13,805			1.26		13,833			1.34		12,901			1.30		12,844			1.21
Total non-margin loans	35,807			1.90		36,399			1.94		36,727			1.88		37,947			1.86
Securities:
U.S. government obligations	17,213			1.61		17,462			1.63		23,067			1.38		24,331			1.48
U.S. government agency obligations	42,710			1.87		43,167			1.67		46,186			1.67		49,106			1.70
Obligations of states and political subdivisions	6,691			2.50		6,473			2.58		5,830			2.54		5,305			2.61
Other securities	33,920			1.64		34,318			1.55		36,972			1.37		38,501			1.23
Trading securities	5,217			2.60		5,532			2.19		5,435			2.36		3,922			2.64
Total securities	105,751			1.83		106,952			1.71		117,490			1.59		121,165			1.58
Total interest-earning assets	284,532			1.17		300,758			1.10		311,603			1.05		318,608			1.02
Allowance for loan losses	(210		)			(197		)			(187		)			(186		)
Cash and due from banks	5,886					5,064					6,225					4,715
Other assets	53,430					52,182					52,526					52,472
Assets of consolidated investment funds	11,354					11,405					10,242					9,623
Total Assets	$	354,992				$	369,212				$	380,409				$	385,232

Liabilities and total equity
Interest-bearing liabilities:
Money market rate accounts and demand deposit accounts	$	9,333		0.11	%	$	7,583		0.13	%	$	7,886		0.14	%	$	8,869		0.12	%
Savings	1,034			0.25		1,185			0.27		1,258			0.28		1,262			0.30
Other time deposits	41,544			0.04		42,824			0.04		41,248			0.04		41,507			0.04
Foreign offices	101,075			0.06		111,082			0.06		113,841			0.05		111,511			0.02
Total interest-bearing deposits	152,986			0.06		162,674			0.06		164,233			0.06		163,149			0.03
Federal funds purchased and securities sold under repurchase agreements	14,505			(0.13	)	19,030			(0.05	)	20,620			(0.07	)	20,285			(0.05	)
Trading Liabilities	1,978			1.59		2,993			0.97		2,806			0.84		1,024			1.44
Other borrowed funds	1,137			0.47		3,242			0.23		4,587			0.15		5,270			0.25
Payables to customers and broker-dealers	8,883			0.09		8,916			0.09		9,705			0.10		10,484			0.08
Long-term debt	20,420			1.09		20,361			1.16		20,429			1.12		21,187			1.27
Total interest-bearing liabilities	199,909			0.17		217,216			0.17		222,380			0.16		221,399			0.16
Total noninterest-bearing deposits	81,430					77,820					82,334					85,330
Other liabilities	24,608					24,854					27,369					30,743
Liabilities and obligations of consolidated investment funds	10,128					10,180					8,879					8,101
Total The Bank of New York Mellon Corporation Shareholders' Equity	37,851					38,127					38,313					38,421
Noncontrolling interest	1,066					1,015					1,134					1,238
Total liabilities and shareholders' equity	$	354,992				$	369,212				$	380,409				$	385,232
Net interest margin - Taxable equivalent basis				1.05	%				0.98	%				0.94	%				0.91	%

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.

THE BANK OF NEW YORK MELLON CORPORATION - Average Balances and Interest Rates (continued)



	2015																				2016
(dollar amounts in millions)	March 31					June 30					Sept. 30					Dec. 31					March 31
	Average balance			Average rate		Average balance			Average rate		Average balance			Average rate		Average balance			Average rate		Average balance			Average rate
Assets	Average balance			Average rate		Average balance			Average rate		Average balance			Average rate		Average balance			Average rate		Average balance			Average rate
Interest-earning assets:
Interest-bearing deposits with banks (primarily foreign)	$	22,071		0.56	%	$	20,235		0.56	%	$	20,549		0.45	%	$	19,301		0.45	%	$	14,909		0.69	%
Interest-bearing deposits with Federal Reserve & other central banks	81,160			0.23		81,846			0.21		84,175			0.20		84,880			0.18		89,092			0.28
Federal funds sold and securities purchased under resale agreements	20,416			0.59		23,545			0.61		25,366			0.61		24,147			0.69		23,623			0.84
Margin loans	20,051			1.00		20,467			1.01		19,839			1.05		19,321			1.09		18,907			1.34
Non-margin loans:
Domestic offices	25,256			2.14		26,716			2.06		27,411			2.15		27,751			2.06		28,506			2.21
Foreign offices	12,628			1.24		13,893			1.19		14,407			1.13		14,892			1.17		13,783			1.39
Total non-margin loans	37,884			1.84		40,609			1.77		41,818			1.80		42,643			1.75		42,289			1.95
Securities
U.S. government obligations	27,454			1.38		28,331			1.42		23,935			1.52		23,955			1.53		24,479			1.50
U.S. government agency obligations	52,744			1.68		56,332			1.77		55,624			1.76		55,441			1.81		55,966			1.79
Obligations of states and political subdivisions	5,213			2.64		5,021			2.67		4,465			2.81		4,164			2.80		3,979			2.89
Other securities	38,065			1.33		38,957			1.24		37,164			1.28		35,972			1.25		34,114			1.22
Trading securities	3,046			2.46		3,253			2.63		2,737			2.74		2,786			2.79		3,320			2.16
Total securities	126,522			1.57		131,894			1.59		123,925			1.63		122,318			1.65		121,858			1.62
Total interest-earning assets	308,104			1.07		318,596			1.08		315,672			1.08		312,610			1.08		310,678			1.16
Allowance for loan losses	(191		)			(190		)			(184		)			(181		)			(157		)
Cash and due from banks	6,204					6,785					6,140					5,597					3,879
Other assets (a)	51,966					50,808					49,700					48,849					48,845
Assets of consolidated investment funds (a)	2,328					2,280					2,125					1,715					1,309
Total Assets (a)	$	368,411				$	378,279				$	373,453				$	368,590				$	364,554

Liabilities and total equity
Interest-bearing liabilities:
Money market rate accounts and demand deposit accounts	$	10,021		0.12	%	$	10,322		0.13	%	$	10,623		0.13	%	$	9,292		0.12	%	$	8,249		0.11	%
Savings	1,429			0.30		1,326			0.27		1,279			0.27		1,217			0.27		1,235			0.27
Other time deposits	43,259			0.04		46,807			0.03		43,529			0.04		43,061			0.03		42,678			0.04
Foreign offices	104,811			0.03		112,261			—		114,322			—		106,764			—		109,855			0.03
Total interest-bearing deposits	159,520			0.04		170,716			0.02		169,753			0.02		160,334			0.01		162,017			0.04
Federal funds purchased and securities sold under repurchase agreements	13,877			(0.09	)	16,732			(0.02	)	14,796			(0.04	)	20,349			(0.03	)	18,689			0.20
Trading Liabilities	795			1.07		632			1.84		475			1.42		638			1.34		551			1.43
Other borrowed funds	2,108			0.50		3,795			0.37		2,823			0.35		733			1.13		781			0.96
Payables to customers and broker-dealers	10,932			0.07		11,234			0.07		11,504			0.06		12,904			0.06		16,801			0.09
Long-term debt	20,199			1.21		20,625			0.99		21,070			1.21		21,418			1.19		21,556			1.57
Total interest-bearing liabilities	207,431			0.15		223,734			0.12		220,421			0.14		216,376			0.14		220,395			0.21
Total noninterest-bearing deposits	89,592					84,890					85,046					85,878					82,944
Other liabilities	32,341					29,840					27,880					26,530					22,300
Liabilities and obligations of consolidated investment funds (a)	1,004					857					841					629					259
Total The Bank of New York Mellon Corporation Shareholders' Equity	37,048					37,829					38,140					38,216					37,804
Noncontrolling interest (a)	995					1,129					1,125					961					852
Total liabilities and shareholders' equity (a)	$	368,411				$	378,279				$	373,453				$	368,590				$	364,554
Net interest margin - Taxable equivalent basis				0.97	%				1.00	%				0.98	%				0.99	%				1.01	%

(a) The first quarter of 2015 was restated to reflect the retrospective application of adopting new accounting guidance related to Consolidations (ASU 2015-02).

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.

THE BANK OF NEW YORK MELLON CORPORATION

NONINTEREST EXPENSE - 9 Quarter Trend



	2014									2015									2016
(dollar amounts in millions)	1st Qtr			2nd Qtr		3rd Qtr		4th Qtr		1st Qtr			2nd Qtr		3rd Qtr		4th Qtr		1st Qtr

Staff	1,511			1,439		1,477		1,418		1,485			1,434		1,437		1,481		1,459
Professional, legal and other purchased services	312			314		323		390		302			299		301		328		278
Software and equipment	237			236		234		235		228			228		226		225		219
Net occupancy	154			152		154		150		151			149		152		148		142
Distribution and servicing	107			112		107		102		98			96		95		92		100
Business development	64			68		61		75		61			72		59		75		57
Sub-custodian	68			81		67		70		70			75		65		60		59
Other	223			347		250		211		242			250		268		201		241
Amortization of intangible assets	75			75		75		73		66			65		66		64		57
Merger & integration, litigation and restructuring charges	(12		)	122		220		800		(3		)	59		11		18		17
Total noninterest expense	$	2,739		$	2,946	$	2,968	$	3,524	$	2,700		$	2,727	$	2,680	$	2,692	$	2,629

Memo:
Total noninterest expense excluding amortization of intangible assets and M&I, litigation and restructuring charges (recoveries), and the charge (recovery) related to investment management funds, net of incentives - Non-GAAP	$	2,681		$	2,640	$	2,673	$	2,651	$	2,637		$	2,603	$	2,603	$	2,610	$	2,555

Full-time employees at period-end	51,400			51,100		50,900		50,300		50,500			50,700		51,300		51,200		52,100

THE BANK OF NEW YORK MELLON CORPORATION

ASSETS UNDER MANAGEMENT, CUSTODY AND/OR ADMINISTRATION AND SECURITIES LENDING - 9 Quarter Trend



	2014												2015												2016
(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
Assets under management at period-end: (a)
Institutional	$	1,092		$	1,084		$	1,106		$	1,164		$	1,188		$	1,163		$	1,129		$	1,126		$	1,155
Mutual Funds	415			440			430			438			445			454			419			421			405
Private Client	85			85			84			84			84			83			77			78			79
Assets under management	$	1,592		$	1,609		$	1,620		$	1,686		$	1,717		$	1,700		$	1,625		$	1,625		$	1,639		(b)

AUM at period-end, by product type: (a)
Equity	17		%	17		%	16		%	15		%	15		%	15		%	14		%	14		%	14		%
Fixed income	13			13			13			12			12			13			13			13			13
Index	21			22			21			21			22			21			20			20			19
Liability-driven investments (c)	27			27			28			30			30			30			32			32			33
Alternative investments	4			4			4			4			4			4			4			4			4
Cash	18			17			18			18			17			17			17			17			17
Total AUM	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%	(b)

Assets under custody and/or administration at period-end (in trillions) (d)	$	27.9		$	28.5		$	28.3		$	28.5		$	28.5		$	28.6		$	28.5		$	28.9		$	29.1		(b)
Market value of securities on loan at period-end (e)	$	264		$	280		$	282		$	289		$	291		$	283		$	288		$	277		$	300

Key Market Metrics
S&P 500 Index (f)	1872			1960			1972			2059			2068			2063			1920			2044			2060
S&P 500 Index - daily average	1835			1900			1976			2009			2064			2102			2027			2052			1951
FTSE 100 Index (f)	6598			6744			6623			6566			6773			6521			6062			6242			6175
FTSE 100 Index-daily average	6680			6764			6756			6526			6793			6920			6399			6271			5988
MSCI World Index (f)	1674			1743			1698			1710			1741			1736			1582			1663			1648
MSCI World Index-daily average	1647			1698			1733			1695			1726			1780			1691			1677			1568
Barclays Capital Global Aggregate Bond^SM Index (f)(g)	365			376			361			357			348			342			346			342			368
NYSE & NASDAQ Share Volume (in billions)	196			187			173			198			187			185			206			198			218
JP Morgan G7 Volatility Index - daily average (h)	7.80			6.22			6.21			8.54			10.40			10.06			9.93			9.49			10.60
Average Fed Funds effective rate	0.07		%	0.09		%	0.09		%	0.10		%	0.11		%	0.13		%	0.13		%	0.16		%	0.36		%

Foreign exchange rates vs. U.S. dollar:
British pound (f)	$	1.67		$	1.71		$	1.62		$	1.56		$	1.48		$	1.57		$	1.52		$	1.48		$	1.44
British pound - average rate	1.66			1.68			1.67			1.58			1.51			1.53			1.55			1.52			1.43
Euro (f)	1.38			1.37			1.26			1.22			1.07			1.11			1.12			1.09			1.14
Euro - average rate	1.37			1.37			1.33			1.25			1.13			1.11			1.11			1.10			1.10

(a) Excludes securities lending cash management assets and assets managed in the Investment Services business. In the third quarter of 2015, prior period AUM was restated to reflect the reclassification of Meriten from the Investment Management business to the Other segment.
(b) Preliminary.
(c) Includes currency overlay assets under management.
(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 $1.2 trillion at March 31, 2014, June 30, 2014 and Sept. 30, 2014, $1.1 trillion at Dec. 31, 2014, March 31, 2015, and June 30, 2015, $1.0 trillion at Sept. 30, 2015 and Dec. 31, 2015, and $1.1 trillion at March 31, 2016.
(e) Represents the total amount of securities on loan managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent, on behalf of CIBC Mellon clients, which totaled $66 billion at March 31, 2014, $64 billion at June 30, 2014, $65 billion at Sept. 30, 2014 and Dec. 31, 2014, $69 billion at March 31, 2015, $68 billion at June 30, 2015, $61 billion at Sept. 30, 2015, $55 billion at Dec. 31, 2015, and $56 billion at March 31, 2016.
(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.

THE BANK OF NEW YORK MELLON CORPORATION

ASSETS UNDER MANAGEMENT NET FLOWS - 9 Quarter Trend



	2014												2015												2016
(dollar amounts in billions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr

Assets under management at beginning of period (a)	$	1,557		$	1,592		$	1,609		$	1,620		$	1,686		$	1,717		$	1,700		$	1,625		$	1,625

Net inflows (outflows):
Long-term:
Equity	(1		)	(5		)	(2		)	(5		)	(5		)	(13		)	(4		)	(9		)	(3		)
Fixed income	—			—			—			4			3			(2		)	(3		)	1			—
Liability-driven investments (b)	20			(17		)	19			24			8			5			11			11			14
Alternative investments	2			2			—			2			1			3			1			2			1
Total long-term active inflows (outflows)	21			(20		)	17			25			7			(7		)	5			5			12
Index	—			7			(3		)	1			8			(9		)	(10		)	(16		)	(11		)
Total long-term inflows (outflows)	21			(13		)	14			26			15			(16		)	(5		)	(11		)	1
Short-term:
Cash	(7		)	(17		)	18			6			1			(11		)	(10		)	2			(9		)
Total net inflows (outflows)	14			(30		)	32			32			16			(27		)	(15		)	(9		)	(8		)

Net market / currency impact / acquisition	21			47			(21		)	34			15			10			(60		)	9			22

Assets under management at end of period (a)	$	1,592		$	1,609		$	1,620		$	1,686		$	1,717		$	1,700		$	1,625		$	1,625		$	1,639		(c)

(a) Excludes securities lending cash management assets and assets managed in the Investment Services business. In the third quarter of 2015, prior period AUM was restated to reflect the reclassification of Meriten from the Investment Management business to the Other segment.
(b) Includes currency overlay assets under management.
(c) Preliminary.

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT MANAGEMENT BUSINESS - 9 Quarter Trend



	2014												2015												2016
(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
Revenue:
Investment management fees:
Mutual funds	$	299		$	311		$	315		$	306		$	301		$	312		$	301		$	294		$	300
Institutional clients	359			373			370			364			365			363			347			350			334
Wealth management	153			156			158			157			159			160			156			155			152
Total investment management fees	811			840			843			827			825			835			804			799			786
Performance fees	20			29			22			40			15			20			7			55			11
Investment management and performance fees	831			869			865			867			840			855			811			854			797
Distribution and servicing	39			39			40			39			38			38			37			39			46
Other (a)	12			43			11			2			41			17			(5		)	22			(31		)
Total fee and other revenue (a)	882			951			916			908			919			910			843			915			812
Net interest revenue	69			67			69			69			75			77			83			84			83
Total revenue	951			1,018			985			977			994			987			926			999			895
Noninterest expense (ex. intangible amortization and the charge (recovery) related to investment management funds, net of incentives)	680			711			712			714			708			700			665			689			660
Income before taxes (ex. provision for credit losses, intangible amortization and the charge (recovery) related to investment management funds, net of incentives)	271			307			273			263			286			287			261			310			235
Charge (recovery) related to investment management funds, net of incentives	(5		)	109			—			—			—			—			—			—			—
Provision for credit losses	(1		)	1			—			—			(1		)	3			1			(4		)	(1		)
Amortization of intangible assets	30			30			30			28			24			25			24			24			19
Income before taxes	$	247		$	167		$	243		$	235		$	263		$	259		$	236		$	290		$	217

Average assets	$	39,333		$	37,619		$	36,542		$	37,163		$	31,361		$	30,414		$	30,960		$	30,982		$	29,971

Assets under management at period-end (in billions) (b)	$	1,592		$	1,609		$	1,620		$	1,686		$	1,717		$	1,700		$	1,625		$	1,625		$	1,639		(c)

Pre-tax operating margin	26		%	16		%	25		%	24		%	26		%	26		%	25		%	29		%	24		%
Adjusted pre-tax operating margin (d)	35		%	36		%	33		%	33		%	34		%	34		%	34		%	36		%	30		%

(a) Total fee and other revenue includes the impact of the consolidated investment management funds, net of non-controlling interests. See "Supplemental information - Explanation of GAAP and Non-GAAP financial measures" beginning on page 25 of the Quarterly Earnings Release for the reconciliation of Non-GAAP measures. Additionally, other revenue includes asset servicing, treasury services, foreign exchange and other trading revenue and investment and other income.
(b) Excludes securities lending cash management assets and assets managed in the Investment Services business. In the third quarter of 2015, prior period AUM was restated to reflect the reclassification of Meriten from the Investment Management business to the Other segment.
(c) Preliminary.
(d) Excludes the net negative impact of money market fee waivers, amortization of intangible assets, provision for credit losses and the charge (recovery) related to investment management funds net of incentives, and is net of distribution and servicing expense. See "Supplemental information - Explanation of GAAP and Non-GAAP financial measures" beginning on page 25 of the Quarterly Earnings Release for the reconciliation of Non-GAAP measures.

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT SERVICES BUSINESS - 9 Quarter Trend



	2014												2015												2016
(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
Revenue:
Investment services fees
Asset servicing fees - ex. securities lending	$	955		$	958		$	971		$	964		$	979		$	995		$	1,001		$	970		$	974
Securities lending revenue	33			39			31			32			38			43			33			39			42
Issuer services	228			231			314			193			231			234			312			199			244
Clearing services	323			324			336			346			342			346			345			337			348
Treasury services	134			140			139			142			135			141			135			135			129
Total investment services fees	1,673			1,692			1,791			1,677			1,725			1,759			1,826			1,680			1,737
Foreign Exchange and other trading revenue	164			148			164			167			212			181			179			150			168
Other (a)	86			117			90			113			92			117			129			127			125
Total fee and other revenue	1,923			1,957			2,045			1,957			2,029			2,057			2,134			1,957			2,030
Net interest revenue	625			630			613			600			629			667			662			664			679
Total revenue	2,548			2,587			2,658			2,557			2,658			2,724			2,796			2,621			2,709
Noninterest expenses (ex. intangible amortization)	1,815			1,856			1,863			2,532			1,822			1,874			1,853			1,791			1,770
Income before taxes (ex. provision for credit losses and intangible amortization)	733			731			795			25			836			850			943			830			939
Provision for credit losses	(7		)	(8		)	7			10			7			6			7			8			14
Amortization of intangible assets	44			44			44			43			41			40			41			40			38
Income before taxes	$	696		$	695		$	767		$	(28	)	$	788		$	804		$	895		$	782		$	887

Average loans	$	38,077		$	39,737		$	40,344		$	42,342		$	45,071		$	45,822		$	46,222		$	45,844		$	45,004
Average assets	$	264,875		$	269,636		$	272,331		$	278,902		$	287,321		$	292,264		$	285,195		$	281,766		$	273,289
Average deposits	$	220,393		$	225,316		$	226,576		$	229,613		$	235,524		$	238,404		$	232,250		$	229,241		$	215,707

Pre-tax operating margin	27		%	27		%	29		%	(1		)%	30		%	30		%	32		%	30		%	33		%
Adjusted pre-tax operating margin (ex. provision for credit losses and intangible amortization)	29		%	28		%	30		%	1		%	31		%	31		%	34		%	32		%	35		%

Investment services fees as a percentage of noninterest expense (b)	92		%	91		%	99		%	92		%	95		%	97		%	99		%	95		%	99		%

Assets under custody and/or administration at period-end (in trillions) (c)	$	27.9		$	28.5		$	28.3		$	28.5		$	28.5		$	28.6		$	28.5		$	28.9		$	29.1		(d)

Market value of securities on loan at period-end (in billions) (e)	$	264		$	280		$	282		$	289		$	291		$	283		$	288		$	277		$	300

(a) Other revenue includes investment management fees, financing-related fees, distribution and servicing revenue, and investment and other income.
(b) Noninterest expense excludes amortization of intangible assets and litigation expense.
(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, 2014, June 30, 2014 and Sept. 30, 2014, $1.1 trillion at Dec. 31, 2014, March 31, 2015, and June 30, 2015, $1.0 trillion at Sept. 30, 2015 and Dec. 31, 2015, and $1.1 trillion at March 31, 2016.
(d) Preliminary.
(e) Represents the total amount of securities on loan managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent on behalf of CIBC Mellon clients, which totaled $66 billion at March 31, 2014, $64 billion at June 30, 2014, $65 billion at Sept. 30, 2014 and Dec. 31, 2014, $69 billion at March 31, 2015, $68 billion at June 30, 2015, $61 billion at Sept. 30, 2015, $55 billion at Dec. 31, 2015, and $56 billion at March 31, 2016.

THE BANK OF NEW YORK MELLON

OTHER SEGMENT- 9 Quarter Trend



	2014												2015												2016
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr

Revenue:
Fee and other revenue (a)	$	94		$	101		$	906		$	88		$	85		$	103		$	59		$	89		$	129
Net interest revenue	34			22			39			43			24			35			14			12			4
Total revenue (a)	128			123			945			131			109			138			73			101			133
Noninterest expense (ex. amortization of intangible assets, M&I and restructuring (recoveries) charges)	174			75			261			205			108			79			97			150			141
Income (loss) before taxes (ex. amortization of intangible assets, M&I and restructuring (recoveries) charges) (a)	$	(46	)	$	48		$	684		$	(74	)	$	1		$	59		$	(24	)	$	(49	)	$	(8	)
Provision for credit losses	(10		)	(5		)	(3		)	(9		)	(4		)	(15		)	(7		)	159			(3		)
Amortization of intangible assets	1			1			1			2			1			—			1			—			—
M&I and restructuring (recoveries) charges	—			120			57			—			(4		)	8			(2		)	(4		)	(1		)
Income (loss) before taxes (a)	$	(37	)	$	(68	)	$	629		$	(67	)	$	8		$	66		$	(16	)	$	(204	)	$	(4	)

Average loans and leases	$	3,495		$	3,340		$	3,719		$	3,378		$	1,230		$	2,956		$	2,656		$	2,673		$	1,917
Average assets	$	50,784		$	55,601		$	57,298		$	69,167		$	49,729		$	55,601		$	57,298		$	55,842		$	61,294
(a) 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).

THE BANK OF NEW YORK MELLON CORPORATION BUSINESSES



	Investment Management									Investment Services									Other												Consolidated Results
(dollar amounts in millions unless otherwise noted)	2015			2014			2013			2015			2014			2013			2015				2014				2013				2015				2014				2013
Revenue:
Investment services fees
Asset servicing	$	89		$	91		$	91		$	4,098		$	3,983		$	3,814		$	—			$	1			$	—			$	4,187			$	4,075			$	3,905
Issuer services	—			—			—			976			966			1,087			2				2				3				978				968				1,090
Clearing services	—			—			—			1,370			1,329			1,258			5				6				6				1,375				1,335				1,264
Treasury services	9			9			2			546			555			544			—				—				8				555				564				554
Total investment services fees	98			100			93			6,990			6,833			6,703			7				9				17				7,095				6,942				6,813
Investment management fees	3,263			3,321			3,205			70			74			63			22				48				77				3,355				3,443				3,345
Performance fees	97			111			130			—			—			—			1				4				—				98				115				130
Foreign exchange and other trading revenue	(13		)	(23		)	8			722			643			714			59				(50		)		(48		)		768				570				674
Distribution and servicing	152			157			167			10			11			8			—				5				5				162				173				180
Financing-related fees	(1		)	1			5			222			168			162			(1		)		—				5				220				169				172
Investment and other income	(10		)	(11		)	(19		)	163			153			143			166			(a)	1,083			(a)	380			(a)	319			(a)	1,225			(a)	504			(a)
Total fee revenue	3,586			3,656			3,589			8,177			7,882			7,793			254			(a)	1,099			(a)(b)	436			(a)(b)	12,017			(a)(b)	12,637			(a)(b)	11,818			(a)(b)
Net securities gains (losses)	1			1			6			—			—			8			82				90				127				83				91				141
Total fee and other revenue	3,587			3,657			3,595			8,177			7,882			7,801			336			(a)	1,189			(a)(b)	563			(a)(b)	12,100			(a)(b)	12,728			(a)(b)	11,959			(a)(b)
Net interest revenue (expense)	319			274			259			2,622			2,468			2,665			85				138				85				3,026				2,880				3,009
Total revenue	3,906			3,931			3,854			10,799			10,350			10,466			421			(a)	1,327			(a)	648			(a)	15,126			(a)	15,608			(a)	14,968			(a)
Noninterest expenses (ex. intangible amortization)	2,762			2,921			2,749			7,340			8,066			7,316			432				892				899				10,534				11,879				10,964
Income (loss) before taxes (ex. provision for credit losses and intangible amortization)	1,144			1,010			1,105			3,459			2,284			3,150			(11		)	(a)	435			(a)(b)	(251		)	(a)(b)	4,592			(a)(b)	3,729			(a)(b)	4,004			(a)(b)
Provision for credit losses	(1		)	—			(6		)	28			(21		)	9			133				(27		)		(38		)		160				(48		)		(35		)
Amortization of intangible assets	97			118			143			162			175			194			2				5				5				261				298				342
Income (loss) before taxes and noncontrolling interest	$	1,048		$	892		$	968		$	3,269		$	2,130		$	2,947		$	(146	)	(a)	$	457		(a)(b)	$	(218	)	(a)(b)	$	4,171		(a)(b)	$	3,479		(a)(b)	$	3,697		(a)(b)

Average loans	$	12,545		$	10,589		$	9,361		$	45,743		$	40,137		$	34,673		$	2,384			$	3,484			$	4,282			$	60,672			$	54,210			$	48,316
Average assets	$	30,928		$	37,655		$	38,420		$	286,617		$	271,477		$	252,272		$	54,642			$	63,434			$	51,619			$	372,187			$	372,566			$	342,311
Average deposits	$	15,160		$	14,154		$	13,753		$	233,833		$	225,503		$	210,432		$	2,441			$	2,882			$	1,511			$	251,434			$	242,539			$	225,696

Assets under management at period-end (in billions) (c)	$	1,625		$	1,686		$	1,557		$	—		$	—		$	—		$	—			$	—			$	—			$	1,625			$	1,686			$	1,557
Assets under custody and/or administration at period-end (in trillions) (d)	$	—		$	—		$	—		$	28.9		$	28.5		$	27.6		$	—			$	—			$	—			$	28.9			$	28.5			$	27.6
Market value of securities on loan at period-end (in billions) (e)	$	—		$	—		$	—		$	277		$	289		$	235		$	—			$	—			$	—			$	277			$	289			$	235

Pre-tax operating margin - GAAP	27		%	23		%	25		%	30		%	21		%	28		%	N/M				N/M				N/M				28		%		22		%		25		%

Memo:
Securities lending revenue																															$	176			$	158			$	155

(a) 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).
(b) Total fee and other revenue and income before taxes for the years 2013, 2014 and 2015 include income from consolidated investment management funds of $183 million, $163 million and $86 million, respectively, net of income attributable to noncontrolling interests of $80 million, $84 million and $64 million respectively. The net of these income statement line items of $103 million, $79 million and $18 million, respectively, are included above in fee and other revenue. The year 2015 includes a loss attributable to noncontrolling interest of $4 million related to other consolidated subsidiaries.
(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. In the third quarter of 2015, prior period AUM was restated to reflect the reclassification of Meriten from the Investment Management business to the Other segment.
(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 $1.2 trillion at Dec. 31, 2013, $1.1 trillion at Dec. 31, 2014 and $1.0 trillion at Dec. 31, 2015.
(e) 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, $65 billion at Dec. 31, 2014, and $55 billion at Dec. 31, 2015.
Note: See pages 10 through 12 for businesses results.
N/M - Not meaningful

THE BANK OF NEW YORK MELLON CORPORATION

NONPERFORMING ASSETS - 9 Quarter Trend



	2014												2015												2016
(dollar amounts in millions)	March 31			June 30			Sept. 30			Dec. 31			March 31			June 30			Sept. 30			Dec. 31			March 31

Nonperforming loans:
Other residential mortgages	$	107		$	105		$	113		$	112		$	111		$	110		$	103		$	102		$	99
Wealth management loans and mortgages	12			12			13			12			12			11			12			11			11
Commercial real estate	4			4			4			1			1			1			1			2			2
Commercial	13			13			13			—			—			—			—			—			5
Foreign	7			4			—			—			—			—			—			—			—
Financial institutions	—			—			—			—			—			—			—			171			171

Total nonperforming loans	143			138			143			125			124			122			116			286			288
Other assets owned	3			4			4			3			4			5			7			6			4

Total nonperforming assets (a)	$	146		$	142		$	147		$	128		$	128		$	127		$	123		$	292		$	292

Nonperforming assets ratio	0.27		%	0.24		%	0.26		%	0.22		%	0.21		%	0.20		%	0.20		%	0.46		%	0.48		%
Nonperforming assets ratio excluding margin loans	0.39		%	0.34		%	0.37		%	0.33		%	0.30		%	0.30		%	0.28		%	0.67		%	0.69		%

Allowance for loan losses/nonperforming loans	138.5			135.5			133.6			152.8			153.2			150.0			156.0			54.9			56.3
Allowance for loan losses/nonperforming assets	135.6			131.7			129.9			149.2			148.4			144.1			147.2			53.8			55.5
Total allowance for credit losses/nonperforming loans	228.0			225.4			201.4			224.0			228.2			227.9			241.4			96.2			99.7
Total allowance for credit losses/nonperforming assets	221.8			219.0			195.9			218.8			221.1			218.9			227.6			94.2			98.3

(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 through 4th quarters of 2014 of $74 million, $68 million, $79 million, and $53 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. In 2Q15, BNY Mellon adopted the new accounting guidance included in ASU 2015-02, Consolidations. As a result, we deconsolidated substantially all of the loans of consolidated investment management funds retroactively to Jan.1, 2015.

THE BANK OF NEW YORK MELLON CORPORATION

ALLOWANCE FOR CREDIT LOSSES, PROVISION AND NET CHARGE-OFFS - 9 Quarter Trend



	2014												2015												2016
(dollar amounts in millions)	March 31			June 30			Sept. 30			Dec. 31			March 31			June 30			Sept. 30			Dec. 31			March 31

Allowance for credit losses:
Allowance for credit losses	$	210		$	198		$	187		$	191		$	191		$	190		$	183		$	181		$	157
Allowance for lending-related commitments	134			128			124			97			89			93			95			99			118
Allowance for credit losses - beginning of period	$	344		$	326		$	311		$	288		$	280		$	283		$	278		$	280		$	275

Net (charge-offs)
Charge-offs	(1		)	(4		)	(5		)	(10		)	—			—			—			(170		)	—
Recoveries	1			1			1			1			1			1			1			2			2
Total Net (charge-offs)	—			(3		)	(4		)	(9		)	1			1			1			(168		)	2

Provision for credit losses	(18		)	(12		)	(19		)	1			2			(6		)	1			163			10

Allowance for credit losses - end of period	$	326		$	311		$	288		$	280		$	283		$	278		$	280		$	275		$	287
Allowance for loan losses
Allowance for loan losses	$	198		$	187		$	191		$	191		$	190		$	183		$	181		$	157		$	162
Allowance for lending-related commitments	128			124			97			89			93			95			99			118			125
Allowance for credit losses - end of period	$	326		$	311		$	288		$	280		$	283		$	278		$	280		$	275		$	287


Allowance for loan losses as a percentage of total loans	0.37		%	0.32		%	0.33		%	0.32		%	0.31		%	0.29		%	0.29		%	0.25		%	0.26		%

THE BANK OF NEW YORK MELLON CORPORATION

Quarterly Financial Trends

April 21, 2016

Notes:

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

In the first quarter of 2016, results of credit-related activities were reclassified from the Other segment to the Investment Services segment. Also, concurrent with this reclassification, the provision for credit losses associated with the respective credit portfolios is now reflected in each business segment. All prior periods have been restated.

Beginning in the first quarter of 2016, we revised the net interest revenue for our business to reflect adjustments to our transfer pricing methodology to better reflect the value of certain deposits. This change did not impact the consolidated results.

Beginning in the first quarter of 2016, we refined the expense allocation process for indirect expenses to simplify the expenses recorded in the Other segment to include only expenses not directly attributable to the Investment Management and Investment Services operations. This change did not impact the consolidated results.

In the third quarter of 2015, results of Meriten were reclassified from the Investment Management business to the Other segment. Meriten Investment Management was sold in July 2015.

The first quarter of 2015 was restated to reflect the retrospective application of adopting new accounting guidance related to Consolidations (ASU 2015-02).

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.

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

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

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

Non-GAAP Measures:

Certain Non-GAAP measures are included in this document. These measures are used by management to monitor financial performance, both on a company-wide and on a business basis. These Non-GAAP measures relate to certain revenue/expense categories, percentages and ratios as described in footnotes. For further information, see 'Supplemental information -- Explanation of GAAP and Non-GAAP Financial Measures' in the Quarterly Earnings Release. 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-Q for the quarter ended March 31, 2016 or other reports filed with the SEC.

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