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BANK OF NEW YORK MELLON CORP

FORM 8-K(Current report filing)

Filed 01/18/18 for the Period Ending 01/18/18

Address 240 GREENWICH STREET

NEW YORK, NY, 10286Telephone 212-495-1784

CIK 0001390777Symbol BK

SIC Code 6022 - State Commercial BanksIndustry Investment Management & Fund Operators

Sector FinancialsFiscal Year 12/31

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UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) – January 18, 2018

THE BANK OF NEW YORK MELLON CORPORATION(Exact name of registrant as specified in its charter)

Delaware 001-35651 13-2614959(State or other jurisdiction

of incorporation)(Commission File Number)

(I.R.S. Employer Identification No.)

225 Liberty StreetNew York, New York

(Address of principal executive offices)10286

(Zip code)

Registrant’s telephone number, including area code – (212) 495-1784

Not Applicable(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 under the Securities Act (17 CFR 230.405) or Rule 12b-2 under the Exchange Act (17 CFR240.12b-2).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standardsprovided pursuant to Section 13(a) of the Exchange Act. o

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On January 18, 2018 , The Bank of New York Mellon Corporation (“BNY Mellon”) issued an Earnings Release announcing its financial results for the fourth quarter of 2017 . A copy of theEarnings Release is attached hereto as Exhibit 99.1 and incorporated herein by reference. The quotation included in Exhibit 99.1 (the “Excluded Section”) is “furnished” by this CurrentReport on Form 8-K pursuant to General Instruction B.2 of Form 8-K and is not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwisesubject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any BNY Mellon filing under the Securities Act of 1933 (the “Securities Act”) or theExchange Act. The information included in Exhibit 99.1, other than in the Excluded Section, is to be considered “filed” under the Exchange Act and is incorporated by reference into allfilings made by BNY Mellon under the Securities Act and the Exchange Act that state that this Current Report on Form 8-K is incorporated therein by reference.

ITEM 7.01. REGULATION FD DISCLOSURE.

On January 18, 2018 , in conjunction with a conference call and webcast regarding BNY Mellon’s financial results, Quarterly Financial Trends and a Fourth Quarter 2017 FinancialHighlights presentation are available on BNY Mellon’s website, www.bnymellon.com. A copy of each of the Quarterly Financial Trends and the Fourth Quarter 2017 Financial Highlightspresentation is “furnished” as Exhibits 99.2 and 99.3, respectively, to this Current Report on Form 8-K pursuant to General Instruction B.2 of Form 8-K and is not “filed” for purposes ofSection 18 of the Exchange Act, or otherwise subject to the liabilities under that Section. These exhibits shall not be incorporated by reference into any filings BNY Mellon has made or maymake under the Securities Act or Exchange Act, except as otherwise expressly stated in such filing. The contents of BNY Mellon’s website referenced herein and in the exhibits are notincorporated into this Current Report on Form 8-K.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

Exhibit 99.1 (other than the Excluded Section) shall be deemed filed herewith. The Excluded Section and Exhibits 99.2 and 99.3 shall be deemed furnished herewith.

(d) EXHIBITS.

2

Exhibit

Number Description

99.1 The Bank of New York Mellon Corporation Earnings Release dated January 18, 2018, announcing financial results for the fourth quarter of 2017.

99.2 The Bank of New York Mellon Corporation Quarterly Financial Trends dated January 18, 2018, for the fourth quarter of 2017.

99.3 Fourth Quarter 2017 Financial Highlights Presentation dated January 18, 2018.

3

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

The Bank of New York Mellon Corporation(Registrant)

Date: January 18, 2018 By: /s/ Craig T. Beazer

Name: Craig T. BeazerTitle: Secretary

4

BNY Mellon 4Q17 Earnings Release

NewsReleaseBNY MELLON REPORTS FOURTH QUARTER EARNINGS OF $1.13 BILLION OR $1.08 PER COMMON SHARE

Fourth quarter results include:• U.S. tax legislation estimated net benefit of $ 427 million , or $0.41 per common share• Severance, litigation and other charges of $ 246 million , or $0.24 per common share (a)

TOTAL REVENUE OF $ 3.7 BILLION, DECREASED 2%• Includes $320 million negative impact related to U.S. tax legislation and other charges (a) ; which decreased total revenue growth by 8%• Investment management and performance fees increased 13%• Investment services fees increased 5% ; Asset servicing fees increased 6%

TOTAL EXPENSE OF $ 3.0 BILLION, INCREASED 14%• Includes $282 million (pre-tax) for severance, litigation and other charges (a) ; which increased total expense growth by 11%

FULL-YEAR 2017 EARNINGS OF $3.9 BILLION, OR $3.72 PER COMMON SHARE, AN INCREASE OF 18%• Total revenue up 2% and total expense up 4%• Includes impact of U.S. tax legislation, severance, litigation and other charges (a) ; which decreased revenue growth by 2% and increased expense growth by 3%• These items increased earnings per share growth by 5%

EXECUTING ON CAPITAL PLAN• Returned nearly $900 million through share repurchases and dividends and $3.6 billion in full-year 2017

NEW YORK, January 18, 2018 – The Bank of New York Mellon Corporation (“BNY Mellon”) (NYSE: BK) today reported fourth quarter net income applicable to common shareholders of $1.13 billion , or $1.08 per diluted common share.Results for the fourth quarter 2017 include an estimated net benefit related to the Tax Cuts and Jobs Act (“U.S. tax legislation”) of $ 427 million , or $0.41 per common share, and severance, litigation and other charges of $ 246 million , or$0.24 per common share (a). Net income applicable to common shareholders was $822 million , or $0.77 per diluted common share, in the fourth quarter of 2016 , and $983 million , or $0.94 per diluted common share, in the third quarter of2017 .

“Our fourth quarter results were impacted by new tax legislation and actions that we took to strengthen our firm for the longer term. Aside from these items, our results were favorably impacted by strong equity markets and the underlyingbusinesses continued to show modest growth in revenues and profits,” Charles W. Scharf, chairman and chief executive officer, said.

“We saw strength in asset servicing along with growth in collateral management and clearing services – areas where we see continued client demand. Additionally, our investment management business performed well due to an uplift fromglobal equity markets, net inflows and improved investment performance fees, resulting from good investment performance, especially in fixed income,” Mr. Scharf continued.

“The actions that resulted in the severance and other charges during the quarter are part of an ongoing review of our performance. We expect this review to be completed by our March 8th Investor Day where we intend to provide acomprehensive update of the review and have a broader discussion about our firm.”

“In addition, we have thought how best to use the ongoing benefit from lower taxes and we believe that we have a responsibility to our employees to share the benefit, as well as to invest as much as we intelligently can to build the companyfor the future so we can serve our clients, communities, and shareholders for the long term. At this point, we are anticipating that the impact of the lower tax rate would be almost entirely offset by actions that we will take to reinvest thisbenefit in our employees and our business,” Mr. Scharf concluded.__________________________________________(a) Other charges include an asset impairment and investment securities losses related to the sale of certain securities.

Media Relations: Jennifer Hendricks Sullivan (212) 635-1374 I nvestor Relations: Valerie Haertel (212) 635-8529


FOURTH QUARTER 2017 FINANCIAL HIGHLIGHTS(comparisons are 4Q17 vs. 4Q16 , unless otherwise stated)

Earnings

• Reported 4Q earnings of $1.13 billion, or $1.08 per common share, including the estimated impact of U.S. tax legislation and other charges (a).

Amounts included in 4Q17 results (dollars in millions, except earnings per share) Results - GAAP U.S. tax legislation Other charges (a)

Fee and other revenue $ 2,860 $ (279) $ (37) Income from consolidated investment management funds 17 — — Net interest revenue 851 (4) — Total revenue 3,728 (283) (37)

Provision for credit losses (6) — — Total noninterest expense 3,006 — 282 Income before taxes 728 (283) (319)

(Benefit) provision for income taxes (453) (710) (73) Net income $ 1,181 $ 427 $ (246)

Diluted earnings per common share $ 1.08 $ 0.41 $ (0.24) (a) Other charges include severance, litigation, an asset impairment and investment securities losses related to the sale of certain securities.

• Total revenue of $ 3.7 billion , decreased 2% .• Investment services fees increased 5% reflecting higher money market fees, higher equity market values and termination fees due to lost business recorded in 4Q17 .• Investment management and performance fees increased 13% due to higher equity market values, money market fees, performance fees and the favorable impact of a weaker U.S. dollar. Investment management and performance fees

increased 11% on a constant currency basis (Non-GAAP) (b) .• Foreign exchange revenue was unchanged reflecting higher volumes offset by lower volatility.• Investment and other income decreased reflecting the impact of U.S. tax legislation on our renewable energy investments.• Net interest revenue increased 2% driven by higher interest rates, offset by lower average deposits and loans as well as the impact of interest rate hedging activities and leasing.

• The provision for credit losses was a credit of $6 million .

• Noninterest expense of $3.0 billion , increased 14% reflecting higher severance, litigation and an asset impairment, as well as higher incentive expense driven by stronger performance and the unfavorable impact of the weaker U.S. dollar.

• Preferred stock dividends of $49 million .

U.S. tax legislation

• U.S. tax legislation increased net income by an estimated $427 million as follows:

(estimated in millions) Total revenue Income taxes Net income

Remeasurement of net deferred tax liabilities (c) $ — $ 1,191 $ 1,191Repatriation tax — (723) (723)Other items (4) (39) (43)Renewable energy investments (279) 281 2

$ (283) $ 710 $ 427(c) Excluding deferred tax liabilities related to renewable energy investments.

• Regulatory capital decreased by $551 million driven by the repatriation tax, offset by the tax benefit related to the remeasurement of certain deferred tax liabilities.

• Effective tax rate for 2018 is expected to be approximately 21%.

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

• Record AUC/A of $33.3 trillion increased 11% reflecting higher market values, the favorable impact of a weaker U.S. dollar and net new business.• Estimated new AUC/A wins in Asset Servicing of $575 billion in 4Q17 .

• Record AUM of $1.9 trillion increased 15% reflecting higher market values, the favorable impact of a weaker U.S. dollar and net inflows.• Net long-term inflows of $16 billion in 4Q17 reflect inflows of l iability-driven investments, partially offset by outflows of active equity and fixed income investments and index funds.• Net short-term outflows of $4 billion in 4Q17 .

Capital and liquidity• Repurchased 12 million common shares for $651 million and paid $248 million in dividends to common shareholders and repurchased 55 million common shares for $2.7 billion and paid $901 million in dividends in full-year 2017.• Return on common equity of 12% and 11% in full-year 2017.• Adjusted return on tangible common equity of 27% and 24% in full-year 2017 (b) .• SLR – transitional of 6.1% ; SLR – fully phased-in of 5.9% (b) .• Average LCR of 118% .

(b) See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” beginning on page 23 for the reconciliation of Non-GAAP measures. In all periods presented, Non-GAAP information excludes the net income attributable to noncontrolling interests ofconsolidated investment management funds, amortization of intangible assets and M&I, litigation and restructuring charges. See “Capital and Liquidity” beginning on page 12 for the reconciliation of the SLR.

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

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FINANCIAL SUMMARY

(dollars in millions, except per share amounts; common shares in thousands)

4Q17 vs.4Q17 3Q17 2Q17 1Q17 4Q16 3Q17 4Q16

Revenue: Fee and other revenue $ 2,860 $ 3,167 $ 3,120 $ 3,018 $ 2,954 (10)% (3)%

Income from consolidated investment management funds 17 10 10 33 5 Net interest revenue 851 839 826 792 831 1 2

Total revenue – GAAP 3,728 4,016 3,956 3,843 3,790 (7) (2)Less: Net income attributable to noncontrolling interests related to consolidated investment management

funds 9 3 3 18 4 Total revenue, as adjusted – Non-GAAP 3,719 4,013 3,953 3,825 3,786 (7) (2)

Provision for credit losses (6) (6) (7) (5) 7

Expense: Noninterest expense – GAAP 3,006 2,654 2,655 2,642 2,631 13 14

Less: Amortization of intangible assets 52 52 53 52 60

M&I, litigation and restructuring charges 80 6 12 8 7 Total noninterest expense, as adjusted – Non-GAAP 2,874 2,596 2,590 2,582 2,564 11 12

Income: Income before income taxes 728 1,368 1,308 1,206 1,152 (47)% (37)%

(Benefit) provision for income taxes (453) 348 332 269 280

Net income $ 1,181 $ 1,020 $ 976 $ 937 $ 872

Net (income) attributable to noncontrolling interests (a) (6) (2) (1) (15) (2)

Net income applicable to shareholders of The Bank of New York Mellon Corporation 1,175 1,018 975 922 870

Preferred stock dividends (49) (35) (49) (42) (48)

Net income applicable to common shareholders of The Bank of New York Mellon Corporation $ 1,126 $ 983 $ 926 $ 880 $ 822

Operating leverage (b) (2,043)bps (1,589

)bps

Adjusted operating leverage – Non-GAAP (b)(c) (1,804)bps (1,386

)bps

Key Metrics:

Pre-tax operating margin (c) 20% 34% 33% 31% 30%

Adjusted pre-tax operating margin – Non-GAAP (c) 23% 35% 35% 33% 32% Return on common equity (annualized) (c) 12.1% 10.6% 10.4% 10.2% 9.3% Adjusted return on common equity (annualized) –Non-GAAP (c) 13.2% 11.0% 10.8% 10.7% 9.8% Return on tangible common equity (annualized) –Non-GAAP (c)(d) 25.9% 21.9% 21.9% 22.2% 20.4%

Adjusted return on tangible common equity (annualized) – Non-GAAP (c)(d) 27.4% 22.0% 22.1% 22.4% 20.5% Fee revenue as a percentage of total revenue 77% 78% 79% 78% 78% Percentage of non-U.S. total revenue 39% 36% 35% 34% 34% Average common shares and equivalents outstanding:

Basic 1,024,828 1,035,337 1,035,829 1,041,158 1,050,888

Diluted 1,030,404 1,041,138 1,041,879 1,047,746 1,056,818 Period end:

Full-time employees 52,500 52,900 52,800 52,600 52,000

Book value per common share – GAAP (d) $ 37.21 $ 36.11 $ 35.26 $ 34.23 $ 33.67

Tangible book value per common share – Non-GAAP (d) $ 18.24 $ 18.19 $ 17.53 $ 16.65 $ 16.19

Cash dividends per common share $ 0.24 $ 0.24 $ 0.19 $ 0.19 $ 0.19

Common dividend payout ratio 22% 26% 22% 23% 25%

Closing stock price per common share $ 53.86 $ 53.02 $ 51.02 $ 47.23 $ 47.38

Market capitalization $ 54,584 $ 54,294 $ 52,712 $ 49,113 $ 49,630

Common shares outstanding 1,013,442 1,024,022 1,033,156 1,039,877 1,047,488 (a) Primarily attributable to noncontrolling interests related to consolidated investment management funds.(b) Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense. See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” beginning on page 23 for the components of this

measure.(c) Non-GAAP information for all periods presented excludes the net income attributable to noncontrolling interests related to consolidated investment management funds, amortization of intangible assets and M&I, litigation and restructuring charges. See “Supplemental information

– Explanation of GAAP and Non-GAAP financial measures” beginning on page 23 for the reconciliation of Non-GAAP measures.(d) Tangible book value per common share – Non-GAAP and tangible common equity exclude goodwill and intangible assets, net of deferred tax liabilities, which, at Dec. 31, 2017, have been remeasured at the lower statutory corporate tax rate. See “Supplemental information –

Explanation of GAAP and Non-GAAP financial measures” beginning on page 23 for the reconciliation of Non-GAAP measures.bps – basis points.

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KEY MARKET METRICS

The following table presents key market metrics at period end and on an average basis.

Key market metrics 4Q17 vs.

4Q17 3Q17 2Q17 1Q17 4Q16 3Q17 4Q16

Standard & Poor’s (“S&P”) 500 Index (a) 2674 2519 2423 2363 2239 6 % 19 %S&P 500 Index – daily average 2603 2467 2398 2326 2185 6 19FTSE 100 Index (a) 7688 7373 7313 7323 7143 4 8FTSE 100 Index – daily average 7477 7380 7391 7274 6923 1 8MSCI EAFE (a) 2051 1974 1883 1793 1684 4 22MSCI EAFE – daily average 2005 1934 1856 1749 1660 4 21Barclays Capital Global Aggregate Bond SM Index (a)(b) 485 480 471 459 451 1 8NYSE and NASDAQ share volume (in billions) 188 179 199 186 189 5 (1)JPMorgan G7 Volatility Index – daily average (c) 7.41 8.17 7.98 10.10 10.24 (9) (28)

Average interest on excess reserves paid by the Federal Reserve 1.30% 1.25% 1.04% 0.79% 0.55% 5 bps 75

bps

Foreign exchange rates vs. U.S. dollar: British pound (a) $ 1.35 $ 1.34 $ 1.30 $ 1.25 $ 1.23 1 % 10 %British pound – average rate 1.33 1.31 1.28 1.24 1.24 2 7Euro (a) 1.20 1.18 1.14 1.07 1.05 2 14Euro – average rate 1.18 1.17 1.10 1.07 1.08 1 9

(a) Period end.(b) Unhedged in U.S. dollar terms.(c) The JPMorgan G7 Volatility Index is based on the implied volatility in 3-month currency options.bps – basis points.

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FEE AND OTHER REVENUE

Fee and other revenue 4Q17 vs.

(dollars in millions) 4Q17 3Q17 2Q17 1Q17 4Q16 3Q17 4Q16

Investment services fees: Asset servicing (a) $ 1,130 $ 1,105 $ 1,085 $ 1,063 $ 1,068 2 % 6 %Clearing services 400 383 394 376 355 4 13Issuer services 197 288 241 251 211 (32) (7)Treasury services 137 141 140 139 140 (3) (2)

Total investment services fees 1,864 1,917 1,860 1,829 1,774 (3) 5Investment management and performance fees 962 901 879 842 848 7 13Foreign exchange and other trading revenue 166 173 165 164 161 (4) 3Financing-related fees 54 54 53 55 50 — 8Distribution and servicing 38 40 41 41 41 (5) (7)Investment and other (loss) income (198) 63 122 77 70 N/M N/M

Total fee revenue 2,886 3,148 3,120 3,008 2,944 (8) (2)Net securities (losses) gains (26) 19 — 10 10 N/M N/M

Total fee and other revenue $ 2,860 $ 3,167 $ 3,120 $ 3,018 $ 2,954 (10)% (3)%(a) Asset servicing fees include securities lending revenue of $51 million in 4Q17 , $47 million in 3Q17 , $48 million in 2Q17 , $49 million in 1Q17 and $54 million in 4Q16 .N/M – Not meaningful.

KEY POINTS

• Asset servicing fees increased 6% year-over-year and 2% sequentially. The year-over-year increase primarily reflects higher equity market values, net new business, including growth in collateralmanagement, and the favorable impact of the weaker U.S. dollar. The sequential increase was primarily driven by net new business, securities lending, equity market values and money market fees.

• Clearing services fees increased 13% year-over-year and 4% sequentially. The year-over-year increase primarily reflects higher money market fees and growth in long-term mutual fund assets. Bothincreases also reflect termination fees due to lost business recorded in 4Q17 .

• Issuer services fees decreased 7% year-over-year primarily reflecting lower volumes, fewer corporate actions and lower fees due to a reduction in shares outstanding in certain Depositary Receipts programs,partially offset by higher Corporate Trust revenue . The 32% sequential decrease primarily reflects seasonality in Depositary Receipts revenue .

• Treasury services fees decreased 2% year-over-year and 3% sequentially, primarily reflecting higher compensating balance credits provided to clients, which reduced fee revenue and increased net interestrevenue, partially offset by higher payment volumes.

• Investment management and performance fees increased 13% year-over-year and 7% sequentially, primarily reflecting higher equity market values, money market fees and performance fees. The year-over-year increase also reflects the favorable impact of a weaker U.S. dollar (principally versus the British pound). On a constant currency basis (Non-GAAP), investment management and performance feesincreased 11% compared with 4Q16.

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• Foreign exchange and other trading revenue (in millions) 4Q17 3Q17 2Q17 1Q17 4Q16

Foreign exchange $ 175 $ 158 $ 151 $ 154 $ 175

Other trading (loss) revenue (9) 15 14 10 (14)

Total foreign exchange and other trading revenue $ 166 $ 173 $ 165 $ 164 $ 161

Foreign exchange revenue was unchanged compared with 4Q16 and increased 11% sequentially. Year-over-year, higher volumes were offset by lower volatility . The sequential increase reflects highervolumes. The sequential decrease in other trading revenue primarily reflects the impact of hedging activities.

• Financing-related fees increased 8% year-over-year primarily reflecting higher underwriting fees.

• Investment and other (loss) income (in millions) 4Q17 3Q17 2Q17 1Q17 4Q16

Corporate/bank-owned life insurance $ 43 $ 37 $ 43 $ 30 $ 53

Expense reimbursements from joint venture 15 18 17 14 15

Seed capital gains (a) 7 6 10 9 6

Lease-related gains (losses) 4 — 51 1 (6)

Equity investment income (loss) 4 — 7 26 (2)

Asset-related gains (losses) — 1 (5) 3 1

Other (loss) income (271) 1 (1) (6) 3

Total investment and other (loss) income $ (198) $ 63 $ 122 $ 77 $ 70(a) Excludes the gain (loss) on seed capital investments in consolidated investment management funds which are reflected in operations of consolidated investment management funds, net of noncontrolling interests. The gain on seed capital investments in

consolidated investment management funds was $8 million in 4Q17 , $7 million in 3Q17 , $7 million in 2Q17 , $15 million in 1Q17 and $1 million in 4Q16 .

Both decreases in investment and other income primarily reflect lower other income driven by the impact of U.S. tax legislation on our investments in renewable energy . The net impact of U.S. taxlegislation on renewable energy investments was de minimis to net income, as the pre-tax accounting resulted in a reduction of $279 million to investment and other income, which was offset by the taxbenefit from remeasurement of the related deferred tax liability.

• Net securities losses were $26 million in 4Q17, driven by losses of $37 million on the sale of certain investment securities.

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NET INTEREST REVENUE

Net interest revenue 4Q17 vs.


Net interest revenue $ 851 $ 839 $ 826 $ 792 $ 831 1 % 2 %Tax equivalent adjustment 11 12 12 12 12 N/M N/M

Net interest revenue (FTE) – Non-GAAP (a) $ 862 $ 851 $ 838 $ 804 $ 843 1 % 2 %

Net interest margin

1.14% 1.15% 1.14% 1.13% 1.16 % (1)bps (2

)bps

Net interest margin (FTE) – Non-GAAP (a)1.16% 1.16% 1.16% 1.14% 1.17 % — (1

)bps

Selected average balances:

Cash/interbank investments $ 117,446 $ 114,449 $ 111,021 $ 106,069 $ 104,352 3 % 13 %Trading account securities 2,723 2,359 2,455 2,254 2,288 15 19Securities 120,225 119,089 117,227 114,786 117,660 1 2Loans 56,772 55,944 58,793 60,312 63,647 1 (11)

Interest-earning assets 297,166 291,841 289,496 283,421 287,947 2 3Interest-bearing deposits 147,763 142,490 142,336 139,820 145,681 4 1Noninterest-bearing deposits 69,111 70,168 73,886 73,555 82,267 (2) (16)Long-term debt 28,245 28,138 27,398 25,882 24,986 — 13

Selected average yields/rates: (b)

Cash/interbank investments 0.98% 0.84% 0.67% 0.56% 0.47 % Trading account securities 2.02 2.26 2.85 3.12 3.17 Securities 1.85 1.80 1.72 1.71 1.67 Loans 2.60 2.63 2.44 2.15 1.92 Interest-earning assets 1.65 1.59 1.47 1.38 1.30 Interest-bearing deposits 0.17 0.16 0.09 0.03 (0.01) Long-term debt 2.29 2.07 1.87 1.85 1.36

Average cash/interbank investments as a percentage of average interest-earning assets 40% 39% 38% 37% 36 % Average noninterest-bearing deposits as a percentage of average interest-earning assets 23% 24% 26% 26% 29 % (a) Net interest revenue (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP include the tax equivalent adjustments on tax-exempt income which allows for comparisons 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.(b) Yields/rates include the impact of interest rate hedging activities.FTE – fully taxable equivalent.N/M – Not meaningful.bps – basis points.

KEY POINTS

• Net interest revenue increased 2% year-over-year and 1% sequentially. The year-over-year increase primarily reflects higher interest rates, partially offset by lower average deposits and loans as well as theimpact of interest rate hedging activities and leasing. The sequential increase primarily reflects higher interest rates and higher average deposits, partially offset by leasing-related adjustments. Net interestrevenue in 4Q17 was negatively impacted by $15 million for leasing-related adjustments (including $4 million related to the impact of U.S. tax legislation). Net interest revenue in 4Q16 was positivelyimpacted by $25 million of interest rate hedging activities and a $15 million premium amortization adjustment.

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NONINTEREST EXPENSE

Noninterest expense 4Q17 vs.


Staff $ 1,614 $ 1,469 $ 1,417 $ 1,472 $ 1,395 10 % 16 %Professional, legal and other purchased services 338 305 319 312 325 11 4Software and equipment 297 233 232 223 237 27 25Net occupancy 153 141 139 136 153 9 —Distribution and servicing 106 109 104 100 98 (3) 8Sub-custodian 59 62 65 64 57 (5) 4Business development 66 49 63 51 71 35 (7)Bank assessment charges 53 51 59 57 53 4 —Other 188 177 192 167 175 6 7Amortization of intangible assets 52 52 53 52 60 — (13)M&I, litigation and restructuring charges 80 6 12 8 7 N/M N/M

Total noninterest expense – GAAP $ 3,006 $ 2,654 $ 2,655 $ 2,642 $ 2,631 13 % 14 %

Staff expense as a percentage of total revenue 43% 37% 36% 38% 37% Memo: Adjusted total noninterest expense excluding amortization of intangible assets and M&I, litigation andrestructuring charges – Non-GAAP $ 2,874 $ 2,596 $ 2,590 $ 2,582 $ 2,564 11 % 12 %

N/M – Not meaningful.

KEY POINTS

• Total noninterest expense increased 14% year-over-year and 13% sequentially. Total noninterest expense in 4Q17 includes $282 million for severance, litigation and an asset impairment, which increasedthe year-over-year and sequential noninterest expense growth by 11%.

• Both the year-over-year and sequential increases primarily reflect higher staff, litigation, software and equipment and professional, legal and other purchased services expenses. The year-over-year increasealso reflects the unfavorable impact of the weaker U.S. dollar.• Staff expense reflects higher severance expense. Year-over-year, staff expense also reflects higher incentives, driven by stronger performance.• Software and equipment and professional, legal and other purchased services expenses primarily reflect an asset impairment recorded in 4Q17.

• The sequential increase also reflects seasonally higher business development expense and higher net occupancy expense, driven by the cost to exit leased space.

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INVESTMENT SECURITIES PORTFOLIO

At Dec. 31, 2017 , the fair value of our investment securities portfolio totaled $119.9 billion . The net unrealized pre-tax loss on our total securities portfolio was $85 million at Dec. 31, 2017 compared with apre-tax gain of $257 million at Sept. 30, 2017 . The net unrealized pre-tax loss was primarily driven by an increase in long-term interest rates. At Dec. 31, 2017 , the fair value of the held-to-maturity securitiestotaled $40.5 billion and represented 34% of the fair value of the total investment securities portfolio.

The following table shows the distribution of our investment securities portfolio.

Investment securitiesportfolio

(dollars in millions)

Sept. 30, 2017 4Q17change inunrealizedgain (loss)

Dec. 31, 2017 Fair valueas a % ofamortizedcost (a)

Unrealizedgain (loss)

Ratings (b)

BB+andlower

Fairvalue

Amortizedcost

Fairvalue

AAA/AA-

A+/A-

BBB+/BBB-

Notrated

Agency RMBS $ 49,917 $ (260) $ 50,210 $ 49,746 99% $ (464) 100% —% —% —% —%

U.S. Treasury 25,159 (6) 24,951 24,848 100 (103) 100 — — — —

Sovereign debt/sovereign guaranteed 14,102 (21) 13,998 14,128 101 130 72 6 21 1 —

Non-agency RMBS (c) 1,185 (20) 811 1,091 85 280 — 1 3 85 11

Non-agency RMBS 594 (1) 511 549 98 38 7 4 21 67 1

European floating rate notes 387 2 275 271 97 (4) 49 51 — — —

Commercial MBS 11,033 (13) 11,425 11,394 100 (31) 99 1 — — —

State and political subdivisions 3,141 (25) 2,966 2,973 100 7 80 17 — — 3

Foreign covered bonds 2,626 (3) 2,604 2,615 100 11 100 — — — —

Corporate bonds 1,275 (7) 1,249 1,255 101 6 17 69 14 — —

CLOs 2,550 3 2,898 2,909 100 11 98 — — 1 1

U.S. Government agencies 2,496 17 2,570 2,603 101 33 100 — — — —

Consumer ABS 1,157 (2) 1,040 1,043 100 3 93 — 5 2 —

Other (d) 4,122 (6) 4,485 4,483 100 (2) 82 16 — — 2Total investment securities $ 119,744 (e) $ (342) $ 119,993 $ 119,908 (e) 99% $ (85) (e)(f) 93% 3% 3% 1% —%

(a) Amortized cost before impairments.(b) Represents ratings by S&P, or the equivalent.(c) These RMBS were included in the former Grantor Trust and were marked-to-market in 2009. We believe these RMBS would receive higher credit ratings if these ratings incorporated, as additional credit enhancements, the difference between the written-down amortized cost and

the current face amount of each of these securities.(d) Includes commercial paper with a fair value of $700 million and $700 million and money market funds with a fair value of $939 million and $963 million at Sept. 30, 2017 and Dec. 31, 2017 , respectively.(e) Includes net unrealized losses on derivatives hedging securities available-for-sale of $238 million at Sept. 30, 2017 and $147 million at Dec. 31, 2017 .(f) Unrealized gains of $230 million at Dec. 31, 2017 related to available-for-sale securities, net of hedges.

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NONPERFORMING ASSETS

Nonperforming assets(dollars in millions) Dec. 31, 2017 Sept. 30, 2017 Dec. 31, 2016

Nonperforming loans: Other residential mortgages $ 78 $ 80 $ 91Wealth management loans and mortgages 7 8 8Commercial real estate 1 — —Financial institutions — 2 —Lease financing — — 4

Total nonperforming loans 86 90 103Other assets owned 4 4 4

Total nonperforming assets $ 90 $ 94 $ 107

Nonperforming assets ratio 0.15% 0.16% 0.17%Allowance for loan losses/nonperforming loans 184.9 178.9 164.1Total allowance for credit losses/nonperforming loans 303.5 294.4 272.8

Nonperforming assets decreased $4 million compared with Sept. 30, 2017 and $17 million compared with Dec. 31, 2016 . The decrease in nonperforming assets compared with Sept. 30, 2017 primarily reflectslower other residential mortgages and financial institutions.

ALLOWANCE FOR CREDIT LOSSES, PROVISION AND NET CHARGE-OFFS

Allowance for credit losses, provision and net recoveries(in millions) Dec. 31, 2017 Sept. 30, 2017 Dec. 31, 2016

Allowance for credit losses - beginning of period $ 265 $ 270 $ 274Provision for credit losses (6) (6) 7Net recoveries:

Other residential mortgages 2 1 —Financial institutions — — —

Net recoveries 2 1 —

Allowance for credit losses - end of period $ 261 $ 265 $ 281

Allowance for loan losses $ 159 $ 161 $ 169Allowance for lending-related commitments 102 104 112

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CAPITAL AND LIQUIDITY

Our consolidated capital ratios are shown in the following table. The common equity Tier 1 (“CET1”), Tier 1 and Total risk-based regulatory capital ratios in the first section of the table below are based onBasel III components of capital, as phased-in (referred to as “Transitional ratios”).

Capital ratios Dec. 31, 2017 Sept. 30, 2017 Dec. 31, 2016

Consolidated regulatory capital ratios: (a) Standardized Approach: CET1 ratio 12.0% 12.3% 12.3%Tier 1 capital ratio 14.2 14.6 14.5Total (Tier 1 plus Tier 2) capital ratio 15.1 15.6 15.2

Advanced Approach: CET1 ratio 10.7 11.1 10.6Tier 1 capital ratio 12.7 13.2 12.6Total (Tier 1 plus Tier 2) capital ratio 13.4 14.0 13.0

Leverage capital ratio (b) 6.6 6.8 6.6Supplementary leverage ratio (“SLR”) 6.1 6.3 6.0

BNY Mellon shareholders’ equity to total assets ratio 11.1 11.4 11.6BNY Mellon common shareholders’ equity to total assets ratio 10.1 10.4 10.6

Selected regulatory capital ratios – fully phased-in – Non-GAAP: (a)(c) CET1 ratio:

Standardized Approach 11.5% 11.9% 11.3%Advanced Approach 10.3 10.7 9.7

SLR 5.9 6.1 5.6(a) Regulatory capital ratios for Dec. 31, 2017 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.(b) The leverage capital ratio is based on Tier 1 capital, as phased-in and quarterly average total assets.(c) Estimated.

CET1 generation in 4Q17 – preliminary

Transitionalbasis (b)

Fullyphased-in –

Non-GAAP (c) (in millions)

CET1 – Beginning of period $ 18,870 $ 18,141Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP 1,126 1,126Goodwill and intangible assets, net of related deferred tax liabilities (808) (872)

Gross CET1 generated 318 254Capital deployed: Dividends (248) (248)Common stock repurchased (651) (651)

Total capital deployed (899) (899)Other comprehensive income 360 424Additional paid-in capital (a) 77 77Other (133) (159)

Total other additions 304 342

Net CET1 deployed (277) (303)

CET1 – End of period $ 18,593 $ 17,838(a) Primarily related to stock awards, the exercise of stock options and stock issued for employee benefit plans.(b) Reflects transitional adjustments to CET1 required under the U.S. capital rules.(c) Estimated.

Page - 12


The table presented below compares the fully phased-in Basel III capital components and risk-based ratios to those capital components and ratios determined on a transitional basis.

Basel III capital components and ratios Dec. 31, 2017 (a) Sept. 30, 2017 Dec. 31, 2016

(dollars in millions)Transitional

basis (b)

Fully phased-in –

Non-GAAP (c) Transitional

basis (b)

Fullyphased-in –

Non-GAAP (c) Transitional

basis (b)

Fullyphased-in –

Non-GAAP (c)

CET1:

Common shareholders’ equity $ 37,859 $ 37,709 $ 37,195 $ 36,981 $ 35,794 $ 35,269

Goodwill and intangible assets (18,684) (19,223) (17,876) (18,351) (17,314) (18,312)

Net pension fund assets (169) (211) (72) (90) (55) (90)

Equity method investments (372) (387) (334) (348) (313) (344)

Deferred tax assets (33) (41) (31) (39) (19) (32)

Other (8) (9) (12) (12) — (1)

Total CET1 18,593 17,838 18,870 18,141 18,093 16,490

Other Tier 1 capital:

Preferred stock 3,542 3,542 3,542 3,542 3,542 3,542

Deferred tax assets (8) — (8) — (13) —

Net pension fund assets (42) — (19) — (36) —

Other (41) (41) (34) (34) (121) (121)

Total Tier 1 capital 22,044 21,339 22,351 21,649 21,465 19,911

Tier 2 capital:

Subordinated debt 1,250 1,250 1,300 1,250 550 550

Allowance for credit losses 261 261 265 265 281 281

Trust preferred securities — — — — 148 —

Other (12) (12) (7) (7) (12) (11)

Total Tier 2 capital - Standardized Approach 1,499 1,499 1,558 1,508 967 820

Excess of expected credit losses 33 33 49 49 50 50

Less: Allowance for credit losses 261 261 265 265 281 281

Total Tier 2 capital - Advanced Approach $ 1,271 $ 1,271 $ 1,342 $ 1,292 $ 736 $ 589

Total capital:

Standardized Approach $ 23,543 $ 22,838 $ 23,909 $ 23,157 $ 22,432 $ 20,731

Advanced Approach $ 23,315 $ 22,610 $ 23,693 $ 22,941 $ 22,201 $ 20,500 Risk-weighted assets:

Standardized Approach $ 155,498 $ 155,309 $ 153,494 $ 152,995 $ 147,671 $ 146,475

Advanced Approach $ 174,117 $ 173,916 $ 169,822 $ 169,293 $ 170,495 $ 169,227 Standardized Approach:

CET1 ratio 12.0% 11.5% 12.3% 11.9% 12.3% 11.3%

Tier 1 capital ratio 14.2 13.7 14.6 14.2 14.5 13.6

Total (Tier 1 plus Tier 2) capital ratio 15.1 14.7 15.6 15.1 15.2 14.2

Advanced Approach:

CET1 ratio 10.7% 10.3% 11.1% 10.7% 10.6% 9.7%

Tier 1 capital ratio 12.7 12.3 13.2 12.8 12.6 11.8

Total (Tier 1 plus Tier 2) capital ratio 13.4 13.0 14.0 13.6 13.0 12.1(a) Preliminary.(b) Reflects transitional adjustments to CET1, Tier 1 capital and Tier 2 capital required under the U.S. capital rules.(c) Estimated.

BNY Mellon has presented its estimated fully phased-in CET1 and other risk-based capital ratios and the fully phased-in SLR based on its interpretation of the U.S. capital rules, which are being graduallyphased-in over a multi-year period, and on the application of such rules to BNY Mellon’s businesses as currently conducted. Management views the estimated fully phased-in CET1 and other risk-based capitalratios and fully phased-in SLR as key measures in monitoring BNY Mellon’s capital position and progress against future regulatory capital standards. Additionally, the presentation of the estimated fully phased-in CET1 and other risk-based capital ratios and fully phased-in SLR are intended to allow investors to compare these ratios with estimates presented by other companies.

Page - 13


Our capital and liquidity ratios are necessarily subject to, among other things, BNY Mellon’s further review of applicable rules, anticipated compliance with all necessary enhancements to model calibration,approval by regulators of certain models used as part of RWA calculations, other refinements, further implementation guidance from regulators, market practices and standards and any changes BNY Mellonmay make to its businesses. Consequently, our capital and liquidity ratios remain subject to ongoing review and revision and may change based on these factors.

Supplementary Leverage Ratio

The following table presents the SLR on both the transitional and fully phased-in Basel III basis for BNY Mellon and our largest bank subsidiary, The Bank of New York Mellon.

SLR Dec. 31, 2017 (a) Sept. 30, 2017 Dec. 31, 2016

(dollars in millions)Transitional

basis

Fully phased-in –

Non-GAAP (b) Transitional basis

Fully phased-in –

Non-GAAP (b) Transitional basis

Fullyphased-in –

Non-GAAP (b)Consolidated: Tier 1 capital $ 22,044 $ 21,339 $ 22,351 $ 21,649 $ 21,465 $ 19,911 Total leverage exposure: Quarterly average total assets $ 350,786 $ 350,786 $ 345,709 $ 345,709 $ 344,142 $ 344,142Less: Amounts deducted from Tier 1 capital 19,186 19,892 18,154 18,856 17,333 18,887

Total on-balance sheet assets, as adjusted 331,600 330,894 327,555 326,853 326,809 325,255

Off-balance sheet exposures:

Potential future exposure for derivative contracts (plus certain other items) 6,613 6,613 6,213 6,213 6,021 6,021

Repo-style transaction exposures 1,086 1,086 1,034 1,034 533 533

Credit-equivalent amount of other off-balance sheet exposures (less SLR exclusions) 21,959 21,959 21,860 21,860 23,274 23,274

Total off-balance sheet exposures 29,658 29,658 29,107 29,107 29,828 29,828

Total leverage exposure $ 361,258 $ 360,552 $ 356,662 $ 355,960 $ 356,637 $ 355,083

SLR - Consolidated (c) 6.1% 5.9% 6.3% 6.1% 6.0% 5.6% The Bank of New York Mellon, our largest bank subsidiary: Tier 1 capital $ 20,478 $ 19,768 $ 20,718 $ 19,955 $ 19,011 $ 17,708

Total leverage exposure $ 296,517 $ 296,231 $ 292,759 $ 292,421 $ 291,022 $ 290,230 SLR - The Bank of New York Mellon (c) 6.9% 6.7% 7.1% 6.8% 6.5% 6.1%(a) Preliminary.(b) Estimated.(c) The estimated fully phased-in SLR (Non-GAAP) is based on our interpretation of the U.S. capital rules. When the SLR is fully phased-in in 2018 as a required minimum ratio, we expect to maintain an SLR of over 5%. The minimum required SLR is 3% and there is a 2% buffer, in

addition to the minimum, that is applicable to U.S. G-SIBs. The insured depository institution subsidiaries of the U.S. G-SIBs, including those of BNY Mellon, must maintain a 6% SLR to be considered “well capitalized.”

Liquidity Coverage Ratio (“LCR”)

The U.S. LCR rules became fully phased-in on Jan. 1, 2017 and require BNY Mellon to meet an LCR of 100%. On a consolidated basis, our average LCR was 118% for 4Q17 . High-quality liquid assets(“HQLA”), before haircuts and trapped liquidity, totaled $193 billion at Dec. 31, 2017 and averaged $170 billion for 4Q17 .

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INVESTMENT MANAGEMENT provides investment management services to institutional and retail investors, as well as investment management, wealth and estate planning and private banking solutions to high net worth individuals andfamilies, and foundations and endowments.

(dollars in millions, unless otherwise noted)

4Q17 vs.

4Q17 3Q17 2Q17 1Q17 4Q16 3Q17 4Q16Revenue: Investment management fees: Mutual funds $ 341 $ 332 $ 314 $ 299 $ 297 3 % 15 %Institutional clients 378 367 362 348 340 3 11Wealth management 179 172 169 167 164 4 9Investment management fees (a) 898 871 845 814 801 3 12

Performance fees 50 15 17 12 32 N/M 56Investment management and performance fees 948 886 862 826 833 7 14

Distribution and servicing 51 51 53 52 48 — 6

Other (a) (25) (19) (16) (1) (1) N/M N/MTotal fee and other revenue (a) 974 918 899 877 880 6 11

Net interest revenue 74 82 87 86 80 (10) (8)

Total revenue 1,048 1,000 986 963 960 5 9Provision for credit losses 1 (2) — 3 6 N/M N/MNoninterest expense (ex. amortization of intangible assets) 756 687 683 668 672 10 13Amortization of intangible assets 15 15 15 15 22 — (32)

Total noninterest expense 771 702 698 683 694 10 11Income before taxes $ 276 $ 300 $ 288 $ 277 $ 260 (8)% 6 %Income before taxes (ex. amortization of intangibleassets) – Non-GAAP $ 291 $ 315 $ 303 $ 292 $ 282 (8)% 3 %

Pre-tax operating margin 26% 30% 29% 29% 27% Adjusted pre-tax operating margin – Non-GAAP (b) 31% 35% 34% 34% 33% Changes in AUM (in billions) : (c) Beginning balance of AUM $ 1,824 $ 1,771 $ 1,727 $ 1,648 $ 1,715 Net inflows (outflows): Long-term strategies: Equity (6) (2) (2) (4) (5) Fixed income (2) 4 2 2 (1) Liability-driven investments (d) 23 (2) 15 14 (7) Multi-asset and alternative investments 2 3 1 2 3

Total long-term active strategies inflows (outflows) 17 3 16 14 (10) Index (1) (3) (13) — (1)

Total long-term strategies inflows (outflows) 16 — 3 14 (11) Short term strategies: Cash (4) 10 11 13 (3)

Total net inflows (outflows) 12 10 14 27 (14) Net market impact/other 47 17 1 41 (11) Net currency impact 10 26 29 11 (42)

Ending balance of AUM $ 1,893 (e) $ 1,824 $ 1,771 $ 1,727 $ 1,648 4 % 15 % AUM at period end, by product type: (c) Equity 9% 9% 9% 9% 9% Fixed income 11 11 11 11 11 Index 18 18 18 19 19 Liability-driven investments (d) 35 35 35 34 34 Multi-asset and alternative investments 11 11 11 11 11 Cash 16 16 16 16 16

Total AUM 100% (e) 100% 100% 100% 100% Average balances: Average loans $ 16,813 $ 16,724 $ 16,560 $ 16,153 $ 15,673 1 % 7 %Average deposits $ 11,633 $ 12,374 $ 14,866 $ 15,781 $ 15,511 (6)% (25)%

(a) Total fee and other revenue includes the impact of the consolidated investment management funds, net of noncontrolling interests. See page 27 for a breakdown of the revenue line items in the Investment Management business impacted by the consolidated investment managementfunds. Additionally, other revenue includes asset servicing, treasury services, foreign exchange and other trading revenue and investment and other income.

(b) Excludes amortization of intangible assets, provision for credit losses and distribution and servicing expense. See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” beginning on page 23 for the reconciliation of this Non-GAAP measure.(c) Excludes securities lending cash management assets and assets managed in the Investment Services business.(d) Includes currency overlay assets under management.(e) Preliminary.N/M – Not meaningful.

Page - 15


INVESTMENT MANAGEMENT KEY POINTS

• Income before taxes totaled $276 million in 4Q17 , an increase of 6% year-over-year and a decrease of 8% sequentially. Income before taxes, excluding amortization of intangible assets (Non-GAAP), totaled $291 millionin 4Q17 , an increase of 3% year-over-year and a decrease of 8% sequentially.• Pre-tax operating margin of 26% in 4Q17 decreased 78 bps year-over-year and 366 bps sequentially.• Adjusted pre-tax operating margin (Non-GAAP) of 31% in 4Q17 decreased 240 bps year-over-year and 422 bps sequentially.

• Total revenue was $1.0 billion , an increase of 9% year-over-year and 5% sequentially, primarily reflecting higher investment management fees and performance fees, partially offset by lower other revenue.• 42% of non-U.S. revenue in 4Q17 and 4Q16 .

• Investment management fees increased 12% year-over-year and 3% sequentially, primarily reflecting higher equity market values and higher money market fees. The year-over-year increase also reflects the favorableimpact of a weaker U.S. dollar (principally versus the British pound). On a constant currency basis, investment management fees increased 9% (Non-GAAP) compared with 4Q16.• Net long-term inflows of $16 billion in 4Q17 reflect inflows of l iability-driven investments, partially offset by outflows of active equity and fixed income investments and index funds.• Net short-term outflows of $4 billion in 4Q17 .

• Other revenue declined year-over-year primarily reflecting losses on hedging activity and higher payments to Investment Services related to higher money market fees, partially offset by seed capital gains.

• Net interest revenue decreased 8% year-over-year and 10% sequentially. Both decreases primarily reflect lower average deposits.• Average loans increased 7% year-over-year and 1% sequentially.• Average deposits decreased 25% year-over-year and 6% sequentially.

• Total noninterest expense (excluding amortization of intangible assets) increased 13% year-over-year and 10% sequentially. Both increases primarily reflect higher severance, incentive and software expenses. The year-over-year increase also reflects the unfavorable impact of the weaker U.S. dollar. The sequential increase also reflects seasonally higher business development expenses. Noninterest expense for 4Q17 includes $30 millionrelated to severance and litigation.

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INVESTMENT SERVICES provides business and technology solutions to financial institutions, corporations, public funds and government agencies, including: asset servicing (custody, foreign exchange,fund services, broker-dealer services, securities finance, collateral and liquidity services), clearing services (primarily Pershing LLC), issuer services (depositary receipts and corporate trust) and treasuryservices (global payments, trade finance and cash management).

(dollars in millions, unless otherwise noted)

4Q17 vs.

4Q17 3Q17 2Q17 1Q17 4Q16 3Q17 4Q16Revenue: Investment services fees: Asset servicing $ 1,106 $ 1,081 $ 1,061 $ 1,038 $ 1,043 2 % 6 %Clearing services 400 381 393 375 354 5 13Issuer services 196 288 241 250 211 (32) (7)Treasury services 136 141 139 139 139 (4) (2)Total investment services fees 1,838 1,891 1,834 1,802 1,747 (3) 5

Foreign exchange and other trading revenue 168 154 145 153 157 9 7Other (a) 135 142 136 129 128 (5) 5

Total fee and other revenue 2,141 2,187 2,115 2,084 2,032 (2) 5Net interest revenue 813 777 761 707 713 5 14Total revenue 2,954 2,964 2,876 2,791 2,745 — 8

Provision for credit losses (2) (2) (3) — — N/M N/MNoninterest expense (ex. amortization of intangible assets) 2,060 1,837 1,889 1,812 1,786 12 15Amortization of intangible assets 37 37 38 37 38 — (3)

Total noninterest expense 2,097 1,874 1,927 1,849 1,824 12 15Income before taxes $ 859 $ 1,092 $ 952 $ 942 $ 921 (21)% (7)%Income before taxes (ex. amortization of intangible assets) – Non-GAAP $ 896 $ 1,129 $ 990 $ 979 $ 959 (21)% (7)%

Pre-tax operating margin 29% 37% 33% 34% 34% Adjusted pre-tax operating margin (ex. provision for credit losses and amortization of intangible assets) – Non-GAAP 30% 38% 34% 35% 35% Investment services fees as a percentage of noninterest expense (ex. amortization of intangible assets) 89% 103% 97% 99% 98% Securities lending revenue $ 45 $ 41 $ 42 $ 40 $ 44 10 % 2 % Metrics: Average loans $ 38,845 $ 38,038 $ 40,931 $ 42,818 $ 45,832 2 % (15)%Average deposits $ 204,680 $ 198,299 $ 200,417 $ 197,690 $ 213,531 3 % (4)% AUC/A at period end (in trillions) (b) $ 33.3 (c) $ 32.2 $ 31.1 $ 30.6 $ 29.9 3 % 11 %Market value of securities on loan at period end(in billions) (d) $ 408 $ 382 $ 336 $ 314 $ 296 7 % 38 % Asset servicing:

Estimated new business wins (AUC/A) (in billions) $ 575 (c) $ 166 $ 152 $ 109 $ 141 Clearing services: Average active clearing accounts (U.S. platform)( in thousands) 6,126 6,203 6,159 6,058 5,960 (1)% 3 %

Average long-term mutual fund assets (U.S. platform) $ 508,873 $ 500,998 $ 480,532 $ 460,977 $ 438,460 2 % 16 %

Average investor margin loans (U.S. platform) $ 9,822 $ 8,886 $ 9,812 $ 10,740 $ 10,562 11 % (7)% Depositary Receipts: Number of sponsored programs 886 938 1,025 1,050 1,062 (6)% (17)% Broker-Dealer:

Average tri-party repo balances ( in billions) $ 2,606 $ 2,534 $ 2,498 $ 2,373 $ 2,307 3 % 13 %(a) Other revenue includes investment management fees, financing-related fees, distribution and servicing revenue and investment and other income.(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 $1.3 trillion at Dec. 31, 2017 and Sept. 30, 2017 and $1.2 trillion at June 30, 2017 , March 31, 2017 and Dec. 31, 2016 .(c) Preliminary.(d) 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 $71 billion at Dec. 31, 2017 , $68

billion at Sept. 30, 2017 , $66 billion at June 30, 2017 , $65 billion at March 31, 2017 and $63 billion at Dec. 31, 2016 .N/M – Not meaningful.

Page - 17


INVESTMENT SERVICES KEY POINTS

• Income before taxes totaled $859 million in 4Q17 . Income before taxes, excluding amortization of intangible assets (Non-GAAP), totaled $896 million in 4Q17 .• The pre-tax operating margin was 29% in 4Q17 . The pre-tax operating margin, excluding the provision for credit losses and amortization of intangible assets (Non-GAAP), was 30% in 4Q17 .• Investment services fees as a percentage of noninterest expense (excluding amortization of intangible assets) was 89% in 4Q17 .

• Investment services fees increased 5% year-over-year and decreased 3% sequentially.• Asset servicing fees increased 6% year-over-year and 2% sequentially. The year-over-year increase primarily reflects higher equity market values, net new business, including growth in collateral management, and the

favorable impact of the weaker U.S. dollar. The sequential increase was primarily driven by net new business, securities lending, equity market values and money market fees.• Clearing services fees increased 13% year-over-year and 5% sequentially. The year-over-year increase primarily reflects higher money market fees and growth in long-term mutual fund assets. Both increases also

reflect termination fees due to lost business recorded in 4Q17 .• Issuer services fees decreased 7% year-over-year and 32% sequentially. The year-over-year decrease primarily reflects lower volumes, fewer corporate actions and lower fees due to a reduction in shares outstanding in

certain Depositary Receipts programs, partially offset by higher Corporate Trust revenue . The sequential decrease primarily reflects seasonality in Depositary Receipts revenue .• Treasury services fees decreased 2% year-over-year and 4% sequentially, primarily reflecting higher compensating balance credits provided to clients, which reduced fee revenue and increased net interest revenue,

partially offset by higher payment volumes.

• Foreign exchange and other trading revenue increased 7% year-over-year and 9% sequentially. Year-over year, higher volumes were offset by lower volatility . The sequential increase reflects higher volumes.

• Other revenue increased 5% year-over-year primarily reflecting higher payments from Investment Management related to higher money market fees. The 5% sequential decrease primarily reflects lower financing-relatedfees.

• Net interest revenue increased 14% year-over-year and 5% sequentially. Both increases primarily reflect higher interest rates. The year-over-year increase was partially offset by lower loan and deposit volumes. Thesequential increase also reflects higher loan and deposit volumes.

• Noninterest expense (excluding amortization of intangible assets) increased 15% year-over-year and 12% sequentially. Both increases primarily reflect higher severance, litigation, an asset impairment and additionaltechnology related costs. The year-over-year increase also reflects higher incentives expense and the unfavorable impact of the weaker U.S. dollar. Noninterest expense for 4Q17 includes $233 million related to severance,litigation and an asset impairment.

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

(in millions) 4Q17 3Q17 2Q17 1Q17 4Q16

Revenue: Fee and other revenue $ (247) $ 69 $ 113 $ 72 $ 42Net interest (expense) revenue (36) (20) (22) (1) 38

Total revenue (283) 49 91 71 80Provision for credit losses (5) (2) (4) (8) 1Noninterest expense (ex. M&I and restructuring charges) 134 77 28 106 108M&I and restructuring charges 1 — — 1 2

Total noninterest expense 135 77 28 107 110

(Loss) income before taxes $ (413) $ (26) $ 67 $ (28) $ (31)

(Loss) income before taxes (ex. M&I and restructuring charges) – Non-GAAP $ (412) $ (26) $ 67 $ (27) $ (29)

Average loans and leases $ 1,114 $ 1,182 $ 1,302 $ 1,341 $ 2,142

KEY POINTS

• Total fee and other revenue decreased $289 million compared with 4Q16 and $316 million compared with 3Q17 , primarily reflecting the impact of U.S. tax legislation on our investments in renewableenergy and net securities losses. The net impact of U.S. tax legislation on renewable energy investments was de minimis to net income, as the pre-tax accounting resulted in a reduction of $279 million toinvestment and other income, which was offset by the tax benefit from remeasurement of the related deferred tax liability.

• Net interest revenue decreased $74 million compared with 4Q16 and $16 million compared with 3Q17 . Both decreases primarily reflect leasing-related adjustments, partially offset by higher interest rates.The year-over-year decrease also reflects the positive impact of interest rate hedging activities and a premium amortization adjustment, both recorded in 4Q16.

• Noninterest expense (excluding M&I and restructuring charges) increased $26 million compared with 4Q16 and increased $57 million compared with 3Q17 . Both increases were primarily driven byseverance expense of $19 million recorded in 4Q17. The sequential increase also reflects higher professional, legal and other purchased services and occupancy expenses.

Page - 19


THE BANK OF NEW YORK MELLON CORPORATIONCondensed Consolidated Income Statement

(in millions)

Quarter ended Year ended Dec. 31, 2017 Sept. 30, 2017 Dec. 31, 2016

Dec. 31, 2017 Dec. 31, 2016

Fee and other revenue Investment services fees: Asset servicing $ 1,130 $ 1,105 $ 1,068 $ 4,383 $ 4,244

Clearing services 400 383 355 1,553 1,404

Issuer services 197 288 211 977 1,026

Treasury services 137 141 140 557 547

Total investment services fees 1,864 1,917 1,774 7,470 7,221

Investment management and performance fees 962 901 848 3,584 3,350

Foreign exchange and other trading revenue 166 173 161 668 701

Financing-related fees 54 54 50 216 219

Distribution and servicing 38 40 41 160 166

Investment and other income (loss) (198) 63 70 64 341

Total fee revenue 2,886 3,148 2,944 12,162 11,998

Net securities (losses) gains (26) 19 10 3 75

Total fee and other revenue 2,860 3,167 2,954 12,165 12,073

Operations of consolidated investment management funds Investment income 17 10 8 74 35

Interest of investment management fund note holders — — 3 4 9

Income from consolidated investment management funds 17 10 5 70 26

Net interest revenue Interest revenue 1,219 1,151 928 4,382 3,575

Interest expense 368 312 97 1,074 437

Net interest revenue 851 839 831 3,308 3,138

Total revenue 3,728 4,016 3,790 15,543 15,237

Provision for credit losses (6) (6) 7 (24) (11)

Noninterest expense Staff 1,614 1,469 1,395 5,972 5,733

Professional, legal and other purchased services 338 305 325 1,274 1,185

Software and equipment 297 233 237 985 894

Net occupancy 153 141 153 569 590

Distribution and servicing 106 109 98 419 405

Sub-custodian 59 62 57 250 245

Business development 66 49 71 229 245

Bank assessment charges 53 51 53 220 219

Other 188 177 175 724 721

Amortization of intangible assets 52 52 60 209 237

M&I, litigation and restructuring charges 80 6 7 106 49

Total noninterest expense 3,006 2,654 2,631 10,957 10,523

Income Income before income taxes 728 1,368 1,152 4,610 4,725

(Benefit) provision for income taxes (453) 348 280 496 1,177

Net income 1,181 1,020 872 4,114 3,548

Net (income) attributable to noncontrolling interests (includes $(9), $(3), $(4), $(33) and $(10) related to consolidated investmentmanagement funds, respectively) (6) (2) (2) (24) (1)

Net income applicable to shareholders of The Bank of New York Mellon Corporation 1,175 1,018 870 4,090 3,547

Preferred stock dividends (49) (35) (48) (175) (122)

Net income applicable to common shareholders of The Bank of New York Mellon Corporation $ 1,126 $ 983 $ 822 $ 3,915 $ 3,425

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THE BANK OF NEW YORK MELLON CORPORATIONCondensed Consolidated Income Statement - continued

Net income applicable to common shareholders of The Bank of New York Mellon Corporation used for the earnings per sharecalculation

Quarter ended Year ended

Dec. 31, 2017 Sept. 30, 2017 Dec. 31, 2016

Dec. 31, 2017 Dec. 31, 2016(in millions)

Net income applicable to common shareholders of The Bank of New York Mellon Corporation $ 1,126 $ 983 $ 822 $ 3,915 $ 3,425Less: Earnings allocated to participating securities (a) 8 8 13 43 52

Net income applicable to the common shareholders of The Bank of New York Mellon Corporation after required adjustments for thecalculation of basic and diluted earnings per common share $ 1,118 $ 975 $ 809 $ 3,872 $ 3,373

(a) Beginning in 3Q17, vested stock awards to retirement eligible employees are included in common shares outstanding for earnings per share purposes. This change increased both average basic and average diluted shares outstanding by approximately 6million and reduced earnings allocated to participating securities by $6 million for 3Q17, which resulted in a de minimis impact to both basic and diluted earnings per share.

Average common shares and equivalents outstanding of The Bank of New York Mellon Corporation (a) Quarter ended Year ended

Dec. 31, 2017 Sept. 30, 2017 Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2016(in thousands)

Basic 1,024,828 1,035,337 1,050,888 1,034,281 1,066,286Diluted 1,030,404 1,041,138 1,056,818 1,040,290 1,072,013(a) Beginning in 3Q17, vested stock awards to retirement eligible employees are included in common shares outstanding for earnings per share purposes. This change increased both average basic and average diluted shares outstanding by approximately 6

million and reduced earnings allocated to participating securities by $6 million for 3Q17, which resulted in a de minimis impact to both basic and diluted earnings per share.

Earnings per share applicable to the common shareholders of The Bank of New York Mellon Corporation Quarter ended Year ended

Dec. 31, 2017 Sept. 30, 2017 Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2016(in dollars)

Basic $ 1.09 $ 0.94 $ 0.77 $ 3.74 $ 3.16Diluted $ 1.08 $ 0.94 $ 0.77 $ 3.72 $ 3.15

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THE BANK OF NEW YORK MELLON CORPORATIONConsolidated Balance Sheet

(dollars in millions, except per share amounts) Dec. 31, 2017 Sept. 30, 2017 Dec. 31, 2016

Assets Cash and due from: Banks $ 5,382 $ 5,557 $ 4,822 Interest-bearing deposits with the Federal Reserve and other central banks 91,510 75,808 58,041 Interest-bearing deposits with banks 11,979 15,256 15,086 Federal funds sold and securities purchased under resale agreements 28,135 27,883 25,801

Securities: Held-to-maturity (fair value of $40,512, $39,928 and $40,669) 40,827 39,995 40,905 Available-for-sale 79,543 80,054 73,822

Total securities 120,370 120,049 114,727 Trading assets 6,022 4,666 5,733 Loans 61,540 59,068 64,458 Allowance for loan losses (159) (161) (169)

Net loans 61,381 58,907 64,289 Premises and equipment 1,634 1,631 1,303 Accrued interest receivable 610 547 568 Goodwill 17,564 17,543 17,316 Intangible assets 3,411 3,461 3,598 Other assets 23,029 22,287 20,954

Subtotal assets of operations 371,027 353,595 332,238 Assets of consolidated investment management funds, at fair value 731 802 1,231

Total assets $ 371,758 $ 354,397 $ 333,469

Liabilities Deposits: Noninterest-bearing (principally U.S. offices) $ 82,716 $ 80,380 $ 78,342 Interest-bearing deposits in U.S. offices 52,294 46,023 52,049 Interest-bearing deposits in Non-U.S. offices 109,312 104,593 91,099

Total deposits 244,322 230,996 221,490 Federal funds purchased and securities sold under repurchase agreements 15,163 10,314 9,989 Trading liabilities 3,984 3,253 4,389 Payables to customers and broker-dealers 20,184 21,176 20,987 Commercial paper 3,075 2,501 — Other borrowed funds 3,028 3,353 754 Accrued taxes and other expenses 6,225 6,070 5,867 Other liabilities (includes allowance for lending-related commitments of $102, $104 and $112) 6,050 7,195 5,635 Long-term debt 27,979 28,408 24,463

Subtotal liabilities of operations 330,010 313,266 293,574 Liabilities of consolidated investment management funds, at fair value 2 27 315

Total liabilities 330,012 313,293 293,889

Temporary equity Redeemable noncontrolling interests 179 197 151

Permanent equity Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 35,826, 35,826 and 35,826 shares 3,542 3,542 3,542 Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,354,163,581, 1,352,363,932 and 1,333,706,427 shares 14 14 13 Additional paid-in capital 26,665 26,588 25,962 Retained earnings 25,635 24,757 22,621 Accumulated other comprehensive loss, net of tax (2,357) (2,781) (3,765) Less: Treasury stock of 340,721,136, 328,341,579 and 286,218,126 common shares, at cost (12,248) (11,597) (9,562)

Total The Bank of New York Mellon Corporation shareholders’ equity 41,251 40,523 38,811 Nonredeemable noncontrolling interests of consolidated investment management funds 316 384 618

Total permanent equity 41,567 40,907 39,429

Total liabilities, temporary equity and permanent equity $ 371,758 $ 354,397 $ 333,469

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SUPPLEMENTAL INFORMATION – IMPACT OF U.S. TAX LEGISLATION AND OTHER CHARGES

Amounts included in 4Q17 results - by business segment

(dollars in millions)

U.S. tax legislation Other charges (a)

InvestmentManagement

InvestmentServices Other

InvestmentManagement

InvestmentServices Other Total

Fee and other revenue $ — $ — $ (279) $ — $ — $ (37) $ (37)

Net interest revenue — — (4) — — — —

Total revenue — — (283) — — (37) (37)

Total noninterest expense — — — 30 233 19 282

Income before taxes $ — $ — $ (283) $ (30) $ (233) $ (56) $ (319)(a) Other charges include severance, litigation, an asset impairment and investment securities losses related to the sale of certain securities.

Our estimate of the impact of U.S. tax legislation is based on certain assumptions and our current interpretation of the Tax Cuts and Jobs Act, and may change, possibly materially, as we refine our analysis andas further information becomes available.

SUPPLEMENTAL INFORMATION – EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES

BNY Mellon has included in this Earnings Release certain Non-GAAP financial measures based on estimated fully phased-in CET1 and other risk-based capital ratios, the estimated fully phased-in SLR andtangible common shareholders’ equity. BNY Mellon believes that the CET1 and other risk-based capital ratios, on a fully phased-in basis, and the SLR, on a fully phased-in basis, are measures of capitalstrength that provide additional useful information to investors, supplementing the capital ratios which are, or were, required by regulatory authorities. The tangible common shareholders’ equity ratio, whichexcludes goodwill and intangible assets, net of deferred tax liabilities, includes changes in investment securities valuations which are reflected in total shareholders’ equity. In addition, this ratio is expressed as apercentage of the actual book value of assets. BNY Mellon believes that the return on tangible common equity measure is an additional useful measure for investors because it presents a measure of those assetsthat can generate income. BNY Mellon has provided a measure of tangible book value per common share, which it believes provides additional useful information as to the level of tangible assets in relation toshares of common stock outstanding.

BNY Mellon has presented revenue measures, which exclude the effect of noncontrolling interests related to consolidated investment management funds, and expense measures, which exclude amortization ofintangible assets and M&I, litigation and restructuring charges.

Operating margin, operating leverage and return on equity measures, which exclude some or all of these items, are also presented. Operating margin measures may also exclude the provision for credit losses anddistribution and servicing expense. BNY Mellon believes that these measures are useful to investors because they permit a focus on period-to-period comparisons, which relate to the ability of BNY Mellon toenhance revenues and limit expenses in circumstances where such matters are within BNY Mellon’s control. M&I expenses primarily relate to acquisitions and generally continue for approximately three yearsafter the transaction. Litigation charges represent accruals for loss contingencies that are both probable and reasonably estimable, but exclude standard business-related legal fees. Restructuring charges relate toour streamlining actions and Operational Excellence Initiatives. Excluding the charges mentioned above permits investors to view expenses on a basis consistent with how management views the business.

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The presentation of revenue growth 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 weredetermined by applying the current period foreign currency exchange rates to the prior period revenue. BNY Mellon believes that this presentation, as a supplement to GAAP information, gives investors aclearer picture of the related revenue results without the variability caused by fluctuations in foreign currency exchange rates.

The presentation of income from consolidated investment management funds, net of net income attributable to noncontrolling interests related to the consolidation of certain investment management funds,permits investors to view revenue on a basis consistent with how management views the business. BNY Mellon believes that these presentations, as a supplement to GAAP information, give investors a clearerpicture of the results of its primary businesses.

Each of these measures as described above is used by management to monitor financial performance, both on a company-wide and on a business-level basis.

The following table presents the reconciliation of the pre-tax operating margin ratio.

Pre-tax operating margin (dollars in millions) 4Q17 3Q17 2Q17 1Q17 4Q16

Income before income taxes – GAAP $ 728 $ 1,368 $ 1,308 $ 1,206 $ 1,152Less: Net income attributable to noncontrolling interests of consolidated investment management funds 9 3 3 18 4Add: Amortization of intangible assets 52 52 53 52 60

M&I, litigation and restructuring charges 80 6 12 8 7

Income before income taxes, as adjusted – Non-GAAP (a) $ 851 $ 1,423 $ 1,370 $ 1,248 $ 1,215

Fee and other revenue – GAAP $ 2,860 $ 3,167 $ 3,120 $ 3,018 $ 2,954Income from consolidated investment management funds – GAAP 17 10 10 33 5Net interest revenue – GAAP 851 839 826 792 831

Total revenue – GAAP 3,728 4,016 3,956 3,843 3,790Less: Net income attributable to noncontrolling interests of consolidated investment management funds 9 3 3 18 4

Total revenue, as adjusted – Non-GAAP (a) $ 3,719 $ 4,013 $ 3,953 $ 3,825 $ 3,786

Pre-tax operating margin – GAAP (b)(c) 20% 34% 33% 31% 30%Adjusted pre-tax operating margin – Non-GAAP (a)(b)(c) 23% 35% 35% 33% 32%(a) Non-GAAP information for all periods presented excludes net income attributable to noncontrolling interests of consolidated investment management funds, amortization of intangible assets and M&I, litigation and restructuring charges.(b) Income before taxes divided by total revenue.(c) Our GAAP earnings include tax-advantaged investments such as low income housing, renewable energy, corporate/bank-owned life insurance and tax-exempt securities. The benefits of these investments are primarily reflected in tax expense. If reported on a

tax-equivalent basis, these investments would increase revenue and income before taxes by $ 66 million for 4Q17 , $ 102 million for 3Q17 , $ 106 million for 2Q17 , $ 101 million for 1Q17 and $ 92 million for 4Q16 and would increase our pre-tax operatingmargin by approximately 1.4 % for 4Q17 , 1.6 % for 3Q17 , 1.8 % for 2Q17 and 1Q17 and 1.7 % for 4Q16 .

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The following table presents the reconciliation of the operating leverage.

Operating leverage 4Q17 vs.

(dollars in millions) 4Q17 3Q17 4Q16 3Q17 4Q16

Total revenue – GAAP $ 3,728 $ 4,016 $ 3,790 (7.17)% (1.64)%

Less: Net income attributable to noncontrolling interests of consolidated investment management funds 9 3 4 Total revenue, as adjusted – Non-GAAP $ 3,719 $ 4,013 $ 3,786 (7.33)% (1.77)%

Total noninterest expense – GAAP $ 3,006 $ 2,654 $ 2,631 13.26 % 14.25 %

Less: Amortization of intangible assets 52 52 60 M&I, litigation and restructuring charges 80 6 7

Total noninterest expense, as adjusted – Non-GAAP $ 2,874 $ 2,596 $ 2,564 10.71 % 12.09 %

Operating leverage – GAAP (a) (2,043)bps (1,589

)bps

Adjusted operating leverage – Non-GAAP (a)(b) (1,804)bps (1,386

)bps

(a) Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense.(b) Non-GAAP operating leverage for all periods presented excludes net income attributable to noncontrolling interests of consolidated investment management funds, amortization of intangible assets and M&I, litigation and restructuring charges.bps – basis points.

The following table presents the reconciliation of the returns on common equity and tangible common equity.

Return on common equity and tangible common equity (dollars in millions) 4Q17 3Q17 2Q17 1Q17 4Q16 FY17

Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP $ 1,126 $ 983 $ 926 $ 880 $ 822 $ 3,915Add: Amortization of intangible assets 52 52 53 52 60 209Less: Tax impact of amortization of intangible assets 18 17 19 18 19 72

Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation excludingamortization of intangible assets – Non-GAAP 1,160 1,018 960 914 863 4,052

Add: M&I, litigation and restructuring charges 80 6 12 8 7 106Less: Tax impact of M&I, litigation and restructuring charges 15 — 3 2 3 20

Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, asadjusted – Non-GAAP (a) $ 1,225 $ 1,024 $ 969 $ 920 $ 867 $ 4,138

Average common shareholders’ equity $ 36,952 $ 36,780 $ 35,862 $ 34,965 $ 35,171 $ 36,145Less: Average goodwill 17,518 17,497 17,408 17,338 17,344 17,441

Average intangible assets 3,437 3,487 3,532 3,578 3,638 3,508Add: Deferred tax liability – tax deductible goodwill (b) 1,034 1,561 1,542 1,518 1,497 1,034

Deferred tax liability – intangible assets (b) 718 1,092 1,095 1,100 1,105 718

Average tangible common shareholders’ equity – Non-GAAP $ 17,749 $ 18,449 $ 17,559 $ 16,667 $ 16,791 $ 16,948

Return on common equity – GAAP (c) 12.1% 10.6% 10.4% 10.2% 9.3% 10.8%Adjusted return on common equity – Non-GAAP (a)(c) 13.2% 11.0% 10.8% 10.7% 9.8% 11.4%

Return on tangible common equity – Non-GAAP (c) 25.9% 21.9% 21.9% 22.2% 20.4% 23.9%Adjusted return on tangible common equity – Non-GAAP (a)(c) 27.4% 22.0% 22.1% 22.4% 20.5% 24.4%(a) Non-GAAP information for all periods presented excludes amortization of intangible assets and M&I, litigation and restructuring charges.(b) Deferred tax liabilities are based on fully phased-in Basel III capital rules. Deferred tax liabilities at Dec. 31, 2017 have been remeasured at the lower statutory corporate tax rate.(c) Quarterly returns are annualized.

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The following table presents the reconciliation of the book value per common share.

Book value per common shareDec. 31, 2017 Sept. 30, 2017 June 30, 2017 March 31, 2017 Dec. 31, 2016(dollars in millions, unless otherwise noted)

BNY Mellon shareholders’ equity at period end – GAAP $ 41,251 $ 40,523 $ 39,974 $ 39,138 $ 38,811Less: Preferred stock 3,542 3,542 3,542 3,542 3,542

BNY Mellon common shareholders’ equity at period end – GAAP 37,709 36,981 36,432 35,596 35,269Less: Goodwill 17,564 17,543 17,457 17,355 17,316

Intangible assets 3,411 3,461 3,506 3,549 3,598Add: Deferred tax liability – tax deductible goodwill (a) 1,034 1,561 1,542 1,518 1,497

Deferred tax liability – intangible assets (a) 718 1,092 1,095 1,100 1,105

BNY Mellon tangible common shareholders’ equity at periodend – Non-GAAP $ 18,486 $ 18,630 $ 18,106 $ 17,310 $ 16,957

Period-end common shares outstanding (in thousands) 1,013,442 1,024,022 1,033,156 1,039,877 1,047,488

Book value per common share – GAAP $ 37.21 $ 36.11 $ 35.26 $ 34.23 $ 33.67Tangible book value per common share – Non-GAAP $ 18.24 $ 18.19 $ 17.53 $ 16.65 $ 16.19(a)Deferred tax liabilities are based on fully phased-in Basel III capital rules. Deferred tax liabilities at Dec. 31, 2017 have been remeasured at the lower statutory corporate tax rate.

The following table presents the impact of changes in foreign currency exchange rates on our consolidated investment management and performance fees.

Investment management and performance fees – Consolidated 4Q17 vs.(dollars in millions) 4Q17 4Q16 4Q16

Investment management and performance fees – GAAP $ 962 $ 848 13%

Impact of changes in foreign currency exchange rates — 21 Investment management and performance fees, as adjusted – Non-GAAP $ 962 $ 869 11%

The following table presents income from consolidated investment management funds, net of noncontrolling interests.

Income from consolidated investment management funds, net of noncontrolling interests(in millions) 4Q17 3Q17 2Q17 1Q17 4Q16

Income from consolidated investment management funds $ 17 $ 10 $ 10 $ 33 $ 5Less: Net income attributable to noncontrolling interests of consolidated investment management funds 9 3 3 18 4

Income from consolidated investment management funds, net of noncontrolling interests $ 8 $ 7 $ 7 $ 15 $ 1

The following table presents the impact of changes in foreign currency exchange rates on investment management fees reported in the Investment Management business.

Investment management fees - Investment Management business 4Q17 vs.(dollars in millions) 4Q17 4Q16 4Q16

Investment management fees – GAAP $ 898 $ 801 12%Impact of changes in foreign currency exchange rates — 20

Investment management fees, as adjusted – Non-GAAP $ 898 $ 821 9%

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The following table presents the revenue line items in the Investment Management business impacted by the consolidated investment management funds.

Income from consolidated investment management funds, net of noncontrolling interests - Investment Management business(in millions) 4Q17 3Q17 2Q17 1Q17 4Q16

Investment management fees $ — $ 1 $ 2 $ 2 $ 4Other (Investment income (loss)) 8 6 5 13 (3)

Income from consolidated investment management funds, net of noncontrolling interests $ 8 $ 7 $ 7 $ 15 $ 1

The following table presents the reconciliation of the pre-tax operating margin for the Investment Management business.

Pre-tax operating margin - Investment Management business (dollars in millions) 4Q17 3Q17 2Q17 1Q17 4Q16

Income before income taxes – GAAP $ 276 $ 300 $ 288 $ 277 $ 260Add: Amortization of intangible assets 15 15 15 15 22

Provision for credit losses 1 (2) — 3 6

Adjusted income before income taxes, excluding amortization of intangible assets and provision for credit losses – Non-GAAP $ 292 $ 313 $ 303 $ 295 $ 288

Total revenue – GAAP $ 1,048 $ 1,000 $ 986 $ 963 $ 960Less: Distribution and servicing expense 107 110 104 101 98

Adjusted total revenue, net of distribution and servicing expense – Non-GAAP $ 941 $ 890 $ 882 $ 862 $ 862

Pre-tax operating margin – GAAP (a) 26% 30% 29% 29% 27%Adjusted pre-tax operating margin, excluding amortization of intangible assets, provision for credit losses and distribution and servicing expense – Non-GAAP (a) 31% 35% 34% 34% 33%

(a) Income before taxes divided by total revenue.

DIVIDENDS

Common – On Jan. 18, 2018 , The Bank of New York Mellon Corporation declared a quarterly common stock dividend of $0.24 per share. This cash dividend is payable on Feb. 9, 2018 to shareholders ofrecord as of the close of business on Jan. 30, 2018.

Preferred – On Jan. 18, 2018 , The Bank of New York Mellon Corporation declared the following dividends for the noncumulative perpetual preferred stock, liquidation preference $100,000 per share, for thedividend period ending in March 2018, in each case payable on March 20, 2018 to holders of record as of the close of business on March 5, 2018:

• $1,000.00 per share on the Series A Preferred Stock (equivalent to $10.0000 per Normal Preferred Capital Security of Mellon Capital IV, each representing a 1/100th interest in a share of the Series APreferred Stock);

• $1,300.00 per share on the Series C Preferred Stock (equivalent to $0.3250 per depositary share, each representing a 1/4,000th interest in a share of the Series C Preferred Stock); and• $2,312.50 per share on the Series F Preferred Stock (equivalent to $23.1250 per depositary share, each representing a 1/100th interest in a share of the Series F Preferred Stock).

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CAUTIONARY STATEMENT

A number of statements (i) in this Earnings Release, (ii) in our presentations and (iii) in the responses to questions on our conference call discussing our quarterly results and other public events may contain“forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 including our estimated capital ratios and expectations relating to those ratios, preliminary businessmetrics and statements regarding the estimated impact of the U.S. tax legislation, including the effective tax rate. These statements may be expressed in a variety of ways, including the use of future or presenttense language. Words such as “estimate,” “forecast,” “project,” “anticipate,” “likely,” “target,” “expect,” “intend,” “continue,” “seek,” “believe,” “plan,” “goal,” “could,” “should,” “may,” “will,” “strategy,”“opportunities,” “trends” and words of similar meaning signify forward-looking statements. These statements and other forward-looking statements contained in other public disclosures of The Bank of NewYork Mellon Corporation which make reference to the cautionary factors described in this Earnings Release are based upon current beliefs and expectations and are subject to significant risks and uncertainties(some of which are beyond BNY Mellon’s control). Actual results may differ materially from those expressed or implied as a result of these risks and uncertainties, including, but not limited to, the risk factorsand other uncertainties set forth in BNY Mellon’s Annual Report on Form 10-K for the year ended Dec. 31, 2016, the Quarterly Report on Form 10-Q for the period ended Sept. 30, 2017 and BNY Mellon’sother filings with the Securities and Exchange Commission. All forward-looking statements in this Earnings Release speak only as of Jan. 18, 2018 , and BNY Mellon undertakes no obligation to update anyforward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events.

ABOUT BNY MELLON

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions,corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of Dec. 31, 2017 , BNY Mellon had $33.3trillion in assets under custody and/or administration, and $1.9 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service,distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us onTwitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.

CONFERENCE CALL INFORMATION

Charles W. Scharf, chairman and chief executive officer, and Michael P. Santomassimo, chief financial officer, along with other members of the executive management team from BNY Mellon, will host aconference call and simultaneous live audio webcast at 8:00 a.m. EST on Jan. 18, 2018 . This conference call and audio webcast will include forward-looking statements and may include other materialinformation.

Investors and analysts wishing to access the conference call and audio webcast may do so by dialing (800) 390-5696 (U.S.) or (720) 452-9082 (International), and using the passcode: 678511, or by logging onto www.bnymellon.com/investorrelations. Earnings materials will be available at www.bnymellon.com/investorrelations beginning at approximately 6:30 a.m. EST on Jan. 18, 2018 . Replays of the conferencecall and audio webcast will be available beginning Jan. 18, 2018 at approximately 2 p.m. EST through Feb. 17, 2018 by dialing (888) 203-1112 (U.S.) or (719) 457-0820 (International), and using the passcode:4968536. The archived version of the conference call and audio webcast will also be available at www.bnymellon.com/investorrelations for the same time period.

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The Bank of New York Mellon Corporation

QuarterlyFinancialTrends

January18,2018

Table of Contents

Consolidated Results Page ConsolidatedCorporateEarnings-QuarterlyTrend 3FeeandOtherRevenue 4AverageBalancesandInterestRates 5NoninterestExpense 7AssetsUnderManagement,Custodyand/orAdministrationandSecuritiesLending;KeyMarketMetrics 8AssetsUnderManagementNetFlows 9

Business Segment Results InvestmentManagementBusiness-QuarterlyTrend 10InvestmentServicesBusiness-QuarterlyTrend 11OtherSegment-QuarterlyTrend 12FullYearTrends 13

NonperformingAssets 14AllowanceforCreditLosses,ProvisionandNetCharge-offs 15Notes 16Appendix-GAAPtoNon-GAAPReconciliations 17

THE BANK OF NEW YORK MELLON CORPORATION - CONSOLIDATED CORPORATE EARNINGS - 12 Quarter Trend

2015 2016 2017

(dollar amounts in millions unless otherwise noted) 1stQtr 2ndQtr 3rdQtr 4thQtr 1stQtr 2ndQtr 3rdQtr 4thQtr 1stQtr 2ndQtr 3rdQtr 4thQtr

Revenue:

Investmentservicesfees

Assetservicing $ 1,038 $ 1,060 $ 1,057 $ 1,032 $ 1,040 $ 1,069 $ 1,067 $ 1,068 $ 1,063 $ 1,085 $ 1,105 $ 1,130

Clearingservices 344 347 345 339 350 350 349 355 376 394 383 400

Issuerservices 232 234 313 199 244 234 337 211 251 241 288 197

Treasuryservices 137 144 137 137 131 139 137 140 139 140 141 137

Totalinvestmentservicesfees 1,751 1,785 1,852 1,707 1,765 1,792 1,890 1,774 1,829 1,860 1,917 1,864

Investmentmanagementandperformancefees (a) 867 878 829 864 812 830 860 848 842 879 901 962

Foreignexchange&othertradingrevenue 229 187 179 173 175 182 183 161 164 165 173 166

Distributionandservicing 41 39 41 41 39 43 43 41 41 41 40 38

Financing-relatedfees 40 58 71 51 54 57 58 50 55 53 54 54

Investmentandotherincome(a) 60 104 59 93 105 74 92 70 77 122 63 (198)

Totalfeerevenue(a) 2,988 3,051 3,031 2,929 2,950 2,978 3,126 2,944 3,008 3,120 3,148 2,886

Netsecuritiesgains 24 16 22 21 20 21 24 10 10 — 19 (26)

Totalfeeandotherrevenue(a) 3,012 3,067 3,053 2,950 2,970 2,999 3,150 2,954 3,018 3,120 3,167 2,860

Income(loss)fromconsolidatedinvestmentmanagementfunds(a) 52 40 (22) 16 (6) 10 17 5 33 10 10 17

Netinterestrevenue 728 779 759 760 766 767 774 831 792 826 839 851

Totalrevenue(a) 3,792 3,886 3,790 3,726 3,730 3,776 3,941 3,790 3,843 3,956 4,016 3,728

Provisionforcreditlosses 2 (6) 1 163 10 (9) (19) 7 (5) (7) (6) (6)

Noninterestexpense 2,637 2,603 2,603 2,610 2,555 2,554 2,564 2,564 2,582 2,590 2,596 2,874

Amortizationofintangibleassets 66 65 66 64 57 59 61 60 52 53 52 52

Merger&integration,litigationandrestructuringcharges (3) 59 11 18 17 7 18 7 8 12 6 80

Totalnoninterestexpense 2,700 2,727 2,680 2,692 2,629 2,620 2,643 2,631 2,642 2,655 2,654 3,006

Incomebeforetaxes 1,090 1,165 1,109 871 1,091 1,165 1,317 1,152 1,206 1,308 1,368 728

Provisionforincometaxes 280 276 282 175 283 290 324 280 269 332 348 (453)

Netincome 810 889 827 696 808 875 993 872 937 976 1,020 1,181

Netincome(loss)attributabletononcontrollinginterest (a)(b) (31) (36) 6 (3) 9 (2) (6) (2) (15) (1) (2) (6)

Preferredstockdividends (13) (23) (13) (56) (13) (48) (13) (48) (42) (49) (35) (49)NetincomeapplicabletocommonshareholdersofTheBankofNewYorkMellonCorporation $ 766 $ 830 $ 820 $ 637 $ 804 $ 825 $ 974 $ 822 $ 880 $ 926 $ 983 $ 1,126

Earningspershare(c) $ 0.67 $ 0.73 $ 0.74 $ 0.57 $ 0.73 $ 0.75 $ 0.90 $ 0.77 $ 0.83 $ 0.88 $ 0.94 $ 1.08 Pre-taxoperatingmargin(a) 29% 30% 29% 23% 29% 31% 33% 30% 31% 33% 34% 20%

Adjustedpre-taxoperatingmargin-Non-GAAP(a)(d) 30% 33% 31% 30% 31% 33% 35% 32% 33% 35% 35% 23%

Returnoncommonequity(annualized)-GAAP 8.8% 9.4% 9.1% 7.1% 9.2% 9.3% 10.8% 9.3% 10.2% 10.4% 10.6% 12.1%

Returnontangiblecommonequity(annualized) -Non-GAAP(d) 20.3% 21.5% 20.8% 16.2% 20.6% 20.4% 23.5% 20.4% 22.2% 21.9% 21.9% 25.9%

Percentofnon-UStotalrevenue 36% 36% 37% 34% 33% 34% 36% 34% 34% 35% 36% 39% (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) Primarily attributable to noncontrolling interests related to consolidated investment management funds.(c) The second quarter of 2015 includes a $0.03 per share charge related to litigation and restructuring. The fourth quarter of 2015 includes an $0.11 per share charge for the impairment charge related to a court decision regarding Sentinel, litigation andrestructuring charges. The first quarter, second quarter and third quarter of 2016 each include a $0.01 per share charge related to litigation and restructuring. The third quarter of 2016 also includes a $0.01 per share recovery of the previously impairedSentinel loan. The first quarter of 2017 includes a $0.03 per share tax benefit on stock compensation. The fourth quarter of 2017 includes a $0.41 per share estimated net benefit related to U.S. tax legislation and a $0.24 charge related to severance,litigation and other charges. The fourth quarter of 2017 other charges include an asset impairment and investment securities losses related to the sale of certain securities.(d) Non-GAAP excludes net (loss) income attributable to noncontrolling interests related to consolidated investment management funds, M&I, litigation and restructuring charges (recoveries), amortization of intangible assets, the impairment charge relatedto a court decision regarding Sentinel, and a recovery of the previously impaired Sentinel loan, if applicable. See "Supplemental information - Explanation of GAAP and Non-GAAP financial measures" beginning on page 23 of the Quarterly EarningsRelease dated January 18, 2018 for the fourth quarter of 2017 (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. Also, see "Appendix -GAAP to Non-GAAP Reconciliations" beginning on page 17 for the reconciliation of Non-GAAP measures.Note: See pages 4 through 7 for additional details of revenue/expense items impacting consolidated results.

3

THE BANK OF NEW YORK MELLON CORPORATIONFEE AND OTHER REVENUE - 12 Quarter Trend

2015 2016 2017

(dollar amounts in millions unless otherwise noted) 1stQtr 2ndQtr 3rdQtr 4thQtr 1stQtr 2ndQtr 3rdQtr 4thQtr 1stQtr 2ndQtr 3rdQtr 4thQtr

Investmentservicesfees: Assetservicing $ 995 $ 1,011 $ 1,019 $ 986 $ 990 $ 1,017 $ 1,016 $ 1,014 $ 1,014 1,037 $ 1,058 $ 1,079Securitieslending 43 49 38 46 50 52 51 54 49 48 47 51Clearingservices 344 347 345 339 350 350 349 355 376 394 383 400Issuerservices 232 234 313 199 244 234 337 211 251 241 288 197Treasuryservices 137 144 137 137 131 139 137 140 139 140 141 137Totalinvestmentservicesfees 1,751 1,785 1,852 1,707 1,765 1,792 1,890 1,774 1,829 1,860 1,917 1,864

Investmentmanagementandperformancefees(a) 867 878 829 864 812 830 860 848 842 879 901 962Foreignexchangeandothertradingrevenue 229 187 179 173 175 182 183 161 164 165 173 166Distributionandservicing 41 39 41 41 39 43 43 41 41 41 40 38Financing-relatedfees 40 58 71 51 54 57 58 50 55 53 54 54Investmentandotherincome(a) 60 104 59 93 105 74 92 70 77 122 63 (198)

Totalfeerevenue (a) 2,988 3,051 3,031 2,929 2,950 2,978 3,126 2,944 3,008 3,120 3,148 2,886Netsecuritiesgains 24 16 22 21 20 21 24 10 10 — 19 (26)Totalfeeandotherrevenue(a) $ 3,012 $ 3,067 $ 3,053 $ 2,950 $ 2,970 $ 2,999 $ 3,150 $ 2,954 $ 3,018 $ 3,120 $ 3,167 $ 2,860Feerevenueasapercentageoftotalrevenue 79% 79% 81% 79% 79% 79% 79% 78% 78% 79% 78% 77% (a) The first quarter of 2015 was restated to reflect the retrospective application of adopting new accounting guidance related to Consolidations (ASU 2015-02).

4

THE BANK OF NEW YORK MELLON CORPORATION - Average Balances and Interest Rates - 12 Quarter Trend

2015 2016

March31 June30 Sept.30 Dec.31 March31 June30

Averagebalance

Averagerate

Averagebalance

Averagerate

Averagebalance

Averagerate

Averagebalance

Averagerate

Averagebalance

Averagerate

Averagebalance

Averagerate(dollar amounts in millions)

Assets

Interest-earningassets:

Interest-bearingdepositswithbanks(primarilyforeign) $ 22,071 0.56% $ 20,235 0.56% $ 20,549 0.45% $ 19,301 0.45% $ 14,909 0.69% $ 14,394 0.68%

Interest-bearingdepositswithFederalReserve&othercentralbanks 81,160 0.23 81,846 0.21 84,175 0.20 84,880 0.18 89,092 0.28 97,788 0.30

Federalfundssoldandsecuritiespurchasedunderresaleagreements 20,416 0.59 23,545 0.61 25,366 0.61 24,147 0.69 23,623 0.84 25,813 0.87

Marginloans 20,051 1.00 20,467 1.01 19,839 1.05 19,321 1.09 18,907 1.34 18,226 1.40

Non-marginloans:

Domesticoffices 25,256 2.14 26,716 2.06 27,411 2.15 27,751 2.06 28,506 2.21 29,413 2.25

Foreignoffices 12,628 1.24 13,893 1.19 14,407 1.13 14,892 1.17 13,783 1.39 12,645 1.57

Totalnon-marginloans 37,884 1.84 40,609 1.77 41,818 1.80 42,643 1.75 42,289 1.95 42,058 2.04

Securities:

U.S.governmentobligations 27,454 1.38 28,331 1.42 23,935 1.52 23,955 1.53 24,479 1.50 24,571 1.50

U.S.governmentagencyobligations 52,744 1.68 56,332 1.77 55,624 1.76 55,441 1.81 55,966 1.79 56,050 1.68

Obligationsofstatesandpoliticalsubdivisions 5,213 2.64 5,021 2.67 4,465 2.81 4,164 2.80 3,979 2.89 3,778 2.90

Othersecurities 38,065 1.33 38,957 1.24 37,164 1.28 35,972 1.25 34,114 1.22 33,603 1.24

Tradingsecurities 3,046 2.46 3,253 2.63 2,737 2.74 2,786 2.79 3,320 2.16 2,152 2.45

Totalsecurities 126,522 1.57 131,894 1.59 123,925 1.63 122,318 1.65 121,858 1.62 120,154 1.57

Totalinterest-earningassets 308,104 1.07 318,596 1.08 315,672 1.08 312,610 1.08 310,678 1.16 318,433 1.14

Allowanceforloanlosses (191) (190) (184) (181) (157) (163)

Cashandduefrombanks 6,204 6,785 6,140 5,597 3,879 4,141

Otherassets 51,966 50,808 49,700 48,849 48,845 50,563

Assetsofconsolidatedinvestmentfunds(a) 2,328 2,280 2,125 1,715 1,309 1,246

TotalAssets(a) $ 368,411 $ 378,279 $ 373,453 $ 368,590 $ 364,554 $ 374,220 Liabilities and total equity

Interest-bearingliabilities:

Moneymarketrateaccountsanddemanddepositaccounts $ 10,021 0.12% $ 10,322 0.13% $ 10,623 0.13% $ 9,292 0.12% $ 8,249 0.11% $ 9,070 0.13%

Savings 1,429 0.30 1,326 0.27 1,279 0.27 1,217 0.27 1,235 0.27 1,175 0.39

Othertimedeposits 43,259 0.04 46,807 0.03 43,529 0.04 43,061 0.03 42,678 0.04 46,629 0.06

Foreignoffices 104,811 0.03 112,261 — 114,322 — 106,764 — 109,855 0.03 108,248 0.01

Totalinterest-bearingdeposits 159,520 0.04 170,716 0.02 169,753 0.02 160,334 0.01 162,017 0.04 165,122 0.03Federalfundspurchasedandsecuritiessoldunderrepurchaseagreements 13,877 (0.09) 16,732 (0.02) 14,796 (0.04) 20,349 (0.03) 18,689 0.20 18,204 0.28

TradingLiabilities 795 1.07 632 1.84 475 1.42 638 1.34 551 1.43 662 0.66

Otherborrowedfunds 2,108 0.50 3,795 0.37 2,823 0.35 733 1.13 781 0.96 4,628 0.48

Payablestocustomersandbroker-dealers 10,932 0.07 11,234 0.07 11,504 0.06 12,904 0.06 16,801 0.09 16,935 0.05

Long-termdebt 20,199 1.21 20,625 0.99 21,070 1.21 21,418 1.19 21,556 1.57 22,838 1.54

Totalinterest-bearingliabilities 207,431 0.15 223,734 0.12 220,421 0.14 216,376 0.14 220,395 0.21 228,389 0.21

Totalnoninterest-bearingdeposits 89,592 84,890 85,046 85,878 82,944 84,033

Otherliabilities 32,341 29,840 27,880 26,530 22,300 22,345

Liabilitiesandobligationsofconsolidatedinvestmentfunds(a) 1,004 857 841 629 259 253

TotalTheBankofNewYorkMellonCorporationShareholders'Equity 37,048 37,829 38,140 38,216 37,804 38,379

Noncontrollinginterest(a) 995 1,129 1,125 961 852 821

Totalliabilitiesandshareholders'equity(a) $ 368,411 $ 378,279 $ 373,453 $ 368,590 $ 364,554 $ 374,220

Netinterestmargin-GAAP 0.95% 0.98% 0.96% 0.97% 0.99% 0.97%

Netinterestmargin-Taxableequivalentbasis-Non-GAAP(b) 0.97% 1.00% 0.98% 0.99% 1.01% 0.98% (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) See "Appendix - GAAP to Non-GAAP Reconciliations" beginning on page 17 for the reconciliation of Non-GAAP measures.

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

5

THE BANK OF NEW YORK MELLON CORPORATION - Average Balances and Interest Rates - 12 Quarter Trend (continued)

2016 2017

Sept.30 Dec.31 March31 June30 Sept.30 Dec.31

Averagebalance

Averagerate

Averagebalance

Averagerate

Averagebalance

Averagerate

Averagebalance

Averagerate

Averagebalance

Averagerate

Averagebalance

Averagerate(dollar amounts in millions)

Assets

Interest-earningassets:

Interest-bearingdepositswithbanks(primarilyforeign) $ 14,066 0.74% $ 15,447 0.71% $ 14,714 0.60% $ 14,832 0.73% $ 15,899 0.86% $ 14,068 1.03%

Interest-bearingdepositswithFederalReserve&othercentralbanks 74,102 0.20 61,672 0.18 66,043 0.35 69,316 0.41 70,430 0.50 74,961 0.54

Federalfundssoldandsecuritiespurchasedunderresaleagreements 26,376 0.93 27,233 0.97 25,312 1.07 26,873 1.29 28,120 1.67 28,417 2.11

Marginloans 18,132 1.48 17,547 1.61 15,753 1.94 15,058 2.32 13,206 2.60 14,018 2.67

Non-marginloans:

Domesticoffices 30,534 2.22 32,730 2.23 30,963 2.44 30,734 2.70 29,950 2.87 30,462 2.73

Foreignoffices 12,912 1.45 13,370 1.58 13,596 1.71 13,001 1.99 12,788 2.09 12,292 2.21

Totalnon-marginloans 43,446 1.99 46,100 2.04 44,559 2.22 43,735 2.49 42,738 2.64 42,754 2.58

Securities

U.S.governmentobligations 25,279 1.49 25,953 1.54 26,239 1.60 25,928 1.64 25,349 1.67 25,195 1.71

U.S.governmentagencyobligations 56,464 1.70 57,049 1.82 56,857 1.90 59,533 1.95 61,710 2.00 62,889 2.07

Obligationsofstatesandpoliticalsubdivisions 3,598 2.98 3,461 3.08 3,373 3.11 3,298 3.09 3,226 3.06 3,010 3.10

Othersecurities 33,064 1.23 31,197 1.36 28,317 1.25 28,468 1.15 28,804 1.34 29,131 1.34

Tradingsecurities 2,176 2.62 2,288 3.17 2,254 3.12 2,455 2.85 2,359 2.26 2,723 2.02

Totalsecurities 120,581 1.58 119,948 1.70 117,040 1.74 119,682 1.74 121,448 1.81 122,948 1.85

Totalinterest-earningassets 296,703 1.19 287,947 1.30 283,421 1.38 289,496 1.47 291,841 1.59 297,166 1.65

Allowanceforloanlosses (165) (148) (169) (164) (165) (161)

Cashandduefrombanks 4,189 5,017 5,097 4,972 4,961 5,124

Otherassets 49,463 50,322 46,731 47,303 48,329 48,000

Assetsofconsolidatedinvestmentfunds(a) 1,040 1,004 1,120 908 743 657

TotalAssets(a) $ 351,230 $ 344,142 $ 336,200 $ 342,515 $ 345,709 $ 350,786 Liabilities and total equity

Interest-bearingliabilities:

Moneymarketrateaccountsanddemanddepositaccounts $ 10,027 0.14% $ 13,821 0.08% $ 12,881 0.08% $ 13,038 0.08% $ 13,441 0.16% $ 14,234 0.22%

Savings 1,201 0.41 1,152 0.42 1,094 0.61 1,014 0.75 837 0.76 787 1.09

Othertimedeposits 45,186 0.07 37,766 0.07 35,429 0.12 34,757 0.18 29,934 0.32 30,259 0.41

Foreignoffices 98,695 (0.08) 92,942 (0.07) 90,416 (0.03) 93,527 0.05 98,278 0.10 102,483 0.09

Totalinterest-bearingdeposits 155,109 (0.02) 145,681 (0.01) 139,820 0.03 142,336 0.09 142,490 0.16 147,763 0.17Federalfundspurchasedandsecuritiessoldunderrepurchaseagreements 9,585 0.24 11,567 0.30 18,995 0.51 17,970 0.84 21,403 1.30 20,211 1.83

TradingLiabilities 735 1.11 892 0.54 908 0.89 1,216 0.61 1,434 0.54 1,406 0.38

Otherborrowedfunds 2,047 0.53 1,286 0.77 2,986 0.91 3,408 1.05 4,933 1.26 6,812 1.35

Payablestocustomersandbroker-dealers 16,873 0.07 17,091 0.07 18,961 0.16 20,609 0.30 18,516 0.42 17,868 0.49

Long-termdebt 23,930 1.54 24,986 1.36 25,882 1.85 27,398 1.87 28,138 2.07 28,245 2.29

Totalinterest-bearingliabilities 208,279 0.19 201,503 0.19 207,552 0.33 212,937 0.42 216,914 0.57 222,305 0.65

Totalnoninterest-bearingdeposits 81,619 82,267 73,555 73,886 70,168 69,111

Otherliabilities 21,343 20,760 15,600 15,545 17,728 18,408

Liabilitiesandobligationsofconsolidatedinvestmentfunds(a) 238 229 244 111 35 14

TotalTheBankofNewYorkMellonCorporationShareholders'Equity 39,051 38,713 38,507 39,404 40,322 40,494

Noncontrollinginterest(a) 700 670 742 632 542 454

Totalliabilitiesandshareholders'equity(a) $ 351,230 $ 344,142 $ 336,200 $ 342,515 $ 345,709 $ 350,786

Netinterestmargin-GAAP 1.05% 1.16% 1.13% 1.14% 1.15% 1.14%

Netinterestmargin-Taxableequivalentbasis-Non-GAAP(b) 1.06% 1.17% 1.14% 1.16% 1.16% 1.16% (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) See "Appendix - GAAP to Non-GAAP Reconciliations" beginning on page 17 for the reconciliation of Non-GAAP measures.Note: Interest and average rates were calculated on a taxable equivalent basis (Non-GAAP), at tax rates of approximately 35%, using dollar amounts in thousands and the actual number of days in the year.

6

THE BANK OF NEW YORK MELLON CORPORATIONNONINTEREST EXPENSE - 12 Quarter Trend

2015 2016 2017

(dollar amounts in millions) 1stQtr 2ndQtr 3rdQtr 4thQtr 1stQtr 2ndQtr 3rdQtr 4thQtr 1stQtr 2ndQtr 3rdQtr 4thQtr

Staff $ 1,485 $ 1,434 $ 1,437 $ 1,481 $ 1,459 $ 1,412 $ 1,467 $ 1,395 $ 1,472 $ 1,417 $ 1,469 $ 1,614Professional,legalandotherpurchasedservices 302 299 301 328 278 290 292 325 312 319 305 338Softwareandequipment 228 228 226 225 219 223 215 237 223 232 233 297Netoccupancy 151 149 152 148 142 152 143 153 136 139 141 153Distributionandservicing 98 96 95 92 100 102 105 98 100 104 109 106Sub-custodian 70 75 65 60 59 70 59 57 64 65 62 59Bankassessmentcharges 55 59 41 2 53 52 61 53 57 59 51 53Businessdevelopment 61 72 59 75 57 65 52 71 51 63 49 66Other 187 191 227 199 188 188 170 175 167 192 177 188Amortizationofintangibleassets 66 65 66 64 57 59 61 60 52 53 52 52Merger&integration,litigationandrestructuring(recoveries)charges (3) 59 11 18 17 7 18 7 8 12 6 80

Totalnoninterestexpense-GAAP $ 2,700 $ 2,727 $ 2,680 $ 2,692 $ 2,629 $ 2,620 $ 2,643 $ 2,631 $ 2,642 $ 2,655 $ 2,654 $ 3,006

Memo: TotalnoninterestexpenseexcludingamortizationofintangibleassetsandM&I,litigationandrestructuring(recoveries)charges-Non-GAAP(a) $ 2,637 $ 2,603 $ 2,603 $ 2,610 $ 2,555 $ 2,554 $ 2,564 $ 2,564 $ 2,582 $ 2,590 $ 2,596 $ 2,874

Full-timeemployeesatperiod-end 50,500 50,700 51,300 51,200 52,100 52,200 52,300 52,000 52,600 52,800 52,900 52,500

(a) See "Appendix - GAAP to Non-GAAP Reconciliations" beginning on page 17 for the reconciliation of Non-GAAP measures.

7

THE BANK OF NEW YORK MELLON CORPORATIONASSETS UNDER MANAGEMENT, CUSTODY AND/OR ADMINISTRATION AND SECURITIES LENDING - 12 Quarter Trend

2015 2016 2017 (dollar amounts in billions unless otherwisenoted) 1stQtr 2ndQtr 3rdQtr 4thQtr 1stQtr 2ndQtr 3rdQtr 4thQtr 1stQtr 2ndQtr 3rdQtr 4thQtr

Assetsundermanagementatperiodend:(a)

Institutional $ 1,188 $ 1,163 $ 1,129 $ 1,127 $ 1,155 $ 1,182 $ 1,234 $ 1,182 $ 1,243 $ 1,265 $ 1,285 $ 1,346

MutualFunds 445 454 419 420 405 398 396 381 397 418 447 453

PrivateClient 84 83 77 78 79 84 85 85 87 88 92 94

Assetsundermanagement $ 1,717 $ 1,700 $ 1,625 $ 1,625 $ 1,639 $ 1,664 $ 1,715 $ 1,648 $ 1,727 $ 1,771 $ 1,824 $ 1,893 (b) AUMatperiodend,byproducttype: (a)(c)

Equity 10% 10% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9%

Fixedincome 12 11 12 12 12 12 11 11 11 11 11 11

Index 21 21 19 20 19 18 18 19 19 18 18 18

Liability-driveninvestments(d) 30 30 32 31 33 34 35 34 34 35 35 35

Multi-assetandalternativeinvestments 10 11 11 11 11 11 11 11 11 11 11 11

Cash 17 17 17 17 16 16 16 16 16 16 16 16

TotalAUM 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% (b) Assetsundercustodyand/oradministrationatperiodend(intrillions)(e) $ 28.5 $ 28.6 $ 28.5 $ 28.9 $ 29.1 $ 29.5 $ 30.5 $ 29.9 $ 30.6 $ 31.1 $ 32.2 $ 33.3 (b)Marketvalueofsecuritiesonloanatperiodend (f) $ 291 $ 283 $ 288 $ 277 $ 300 $ 278 $ 288 $ 296 $ 314 $ 336 $ 382 $ 408 KeyMarketMetrics

S&P500Index (g) 2068 2063 1920 2044 2060 2099 2168 2239 2363 2423 2519 2674

S&P500Index-dailyaverage 2064 2102 2027 2052 1951 2075 2162 2185 2326 2398 2467 2603

FTSE100Index (g) 6773 6521 6062 6242 6175 6504 6899 7143 7323 7313 7373 7688

FTSE100Index-dailyaverage 6793 6920 6399 6271 5988 6204 6765 6923 7274 7391 7380 7477

MSCIEAFE(g) 1849 1842 1644 1716 1652 1608 1702 1684 1793 1883 1974 2051

MSCIEAFE-dailyaverage 1818 1905 1785 1732 1593 1648 1677 1660 1749 1856 1934 2005 BarclaysCapitalGlobalAggregateBondSMIndex(g)(h) 448 442 446 442 468 482 486 451 459 471 480 485

NYSE&NASDAQShareVolume(in billions) 187 185 206 198 218 203 186 189 186 199 179 188 JPMorganG7VolatilityIndex-dailyaverage(i) 10.40 10.06 9.93 9.49 10.60 11.12 10.19 10.24 10.10 7.98 8.17 7.41 AverageinterestonexcessreservespaidbytheFederalReserve 0.25% 0.25% 0.25% 0.29% 0.50% 0.50% 0.50% 0.55% 0.79% 1.04% 1.25% 1.30%

Foreignexchangeratesvs.U.S.dollar:

Britishpound(g) $ 1.48 $ 1.57 $ 1.52 $ 1.48 $ 1.44 $ 1.34 $ 1.30 $ 1.23 $ 1.25 $ 1.30 $ 1.34 $ 1.35

Britishpound-averagerate 1.51 1.53 1.55 1.52 1.43 1.43 1.31 1.24 1.24 1.28 1.31 1.33

Euro(g) 1.07 1.11 1.12 1.09 1.14 1.11 1.12 1.05 1.07 1.14 1.18 1.20

Euro-averagerate 1.13 1.11 1.11 1.10 1.10 1.13 1.12 1.08 1.07 1.10 1.17 1.18 (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) In the first quarter of 2017, the AUM in our Wealth Management business and our multi-class funds has been reclassified to multi-asset and alternative investments. This reclassification does not change total AUM. All prior periods have been restated.(d) Includes currency overlay assets under management.(e) Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.1 trillion at March 31, 2015 and June 30, 2015, $1.0 trillion at Sept. 30, 2015 and Dec. 31,

2015, $1.1 trillion at March 31, 2016 and June 30, 2016, $1.2 trillion at Sept. 30, 2016, Dec. 31, 2016, March 31, 2017 and June 30, 2017, and $1.3 trillion at Sept. 30, 2017 and Dec. 31, 2017.(f) 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 $69

billion at March 31, 2015, $68 billion at June 30, 2015, $61 billion at Sept. 30, 2015, $55 billion at Dec. 31, 2015, $56 billion at March 31, 2016 and June 30, 2016, $64 billion at Sept. 30, 2016, $63 billion at Dec. 31, 2016, $65 billion at March 31,2017, $66 billion at June 30, 2017, $68 billion at Sept. 30, 2017 and $71 billion at Dec. 31, 2017.

(g) Period end.(h) Unhedged in U.S. dollar terms.(i) The JP Morgan G7 Volatility Index is based on the implied volatility in 3-month currency options.

8

THE BANK OF NEW YORK MELLON CORPORATIONASSETS UNDER MANAGEMENT NET FLOWS - 12 Quarter Trend

2015 2016 2017 (dollar amounts in billions) 1stQtr 2ndQtr 3rdQtr 4thQtr 1stQtr 2ndQtr 3rdQtr 4thQtr 1stQtr 2ndQtr 3rdQtr 4thQtr BeginningbalanceofAUM(a)(b) $ 1,686 $ 1,717 $ 1,700 $ 1,625 $ 1,625 $ 1,639 $ 1,664 $ 1,715 $ 1,648 $ 1,727 $ 1,771 $ 1,824

Netinflows(outflows): Long-termstrategies: Equity (5) (11) (5) (10) (2) (2) (6) (5) (4) (2) (2) (6) Fixedincome 3 (2) (4) 2 — (3) (1) (1) 2 2 4 (2) Liability-driveninvestments(c) 8 5 11 11 14 15 4 (7) 14 15 (2) 23 Multi-assetandalternativeinvestments 1 2 2 4 — 2 7 3 2 1 3 2 Totallong-termactiveinflows(outflows) 7 (6) 4 7 12 — 12 — 4 (10) 14 16 3 17

Index 8 (10) (10) (17) (11) (17) (3) (1) — (13) (3) (1) Totallong-termstrategiesinflows(outflows) 15 (16) (6) (10) 1 — (5) — 1 (11) 14 3 — 16

Short-termstrategies: Cash 1 (11) (9) 1 (9) 4 (1) (3) 13 11 10 (4) Totalnetinflows(outflows) 16 (27) (15) (9) (8) — (1) — — (14) 27 14 10 12

Netmarketimpact/Other 32 (29) (35) 24 41 71 80 (11) 41 1 17 47 Netcurrencyimpact (35) 39 (25) (15) (19) (47) (29) (42) 11 29 26 10 Acquisitions 18 — — — — 2 — — — — — —

EndingbalanceofAUM $ 1,717 $ 1,700 $ 1,625 $ 1,625 $ 1,639 $ 1,664 $ 1,715 $ 1,648 $ 1,727 $ 1,771 $ 1,824 $ 1,893 (d)

(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 fromthe Investment Management business to the Other segment.

(b) In the first quarter of 2017, the AUM in our Wealth Management business and our multi-class funds has been reclassified to multi-asset and alternative investments. This reclassification does not change total AUM. Allprior periods have been restated.

(c) Includes currency overlay assets under management.(d) Preliminary.

9

THE BANK OF NEW YORK MELLON CORPORATIONINVESTMENT MANAGEMENT BUSINESS - 12 Quarter Trend

2015 2016 2017 (dollar amounts in millions unless otherwisenoted) 1stQtr 2ndQtr 3rdQtr 4thQtr 1stQtr 2ndQtr 3rdQtr 4thQtr 1stQtr 2ndQtr 3rdQtr 4thQtr Revenue:

Investmentmanagementfees: Mutualfunds $ 301 $ 312 $ 301 $ 294 $ 300 $ 304 $ 309 $ 297 $ 299 $ 314 $ 332 $ 341 Institutionalclients 365 363 347 350 334 344 362 340 348 362 367 378 Wealthmanagement 159 160 156 155 152 160 166 164 167 169 172 179

Totalinvestmentmanagementfees(a) 825 835 804 799 786 808 837 801 814 845 871 898 Performancefees 15 20 7 55 11 9 8 32 12 17 15 50

Investmentmanagementandperformancefees 840 855 811 854 797 817 845 833 826 862 886 948 Distributionandservicing 38 38 37 39 46 49 49 48 52 53 51 51 Other(a) 41 17 (5) 22 (31) (10) (18) (1) (1) (16) (19) (25) Totalfeeandotherrevenue(a) 919 910 843 915 812 856 876 880 877 899 918 974 Netinterestrevenue 75 77 83 84 83 82 82 80 86 87 82 74

Totalrevenue 994 987 926 999 895 938 958 960 963 986 1,000 1,048 Provisionforcreditlosses (1) 3 1 (4) (1) 1 — 6 3 — (2) 1 Noninterestexpense(ex.amortizationofintangibleassets) 708 700 665 689 660 684 680 672 668 683 687 756 Amortizationofintangibleassets 24 25 24 24 19 19 22 22 15 15 15 15

Totalnoninterestexpense 732 725 689 713 679 703 702 694 683 698 702 771 Incomebeforetaxes $ 263 $ 259 $ 236 $ 290 $ 217 $ 234 $ 256 $ 260 $ 277 $ 288 $ 300 $ 276 Incomebeforetaxes(ex.intangibleamortization)-Non-GAAP $ 287 $ 284 $ 260 $ 314 $ 236 $ 253 $ 278 $ 282 $ 292 $ 303 $ 315 $ 291

Averageassets $ 31,361 $ 30,414 $ 30,960 $ 30,982 $ 29,971 $ 30,229 $ 30,392 $ 30,532 $ 31,067 $ 31,355 $ 31,689 $ 31,681 Assets under management at period end (inbillions) (b) $ 1,717 $ 1,700 $ 1,625 $ 1,625 $ 1,639 $ 1,664 $ 1,715 $ 1,648 $ 1,727 $ 1,771 $ 1,824 $ 1,893 (c)

Pre-taxoperatingmargin 26% 26% 25% 29% 24% 25% 27% 27% 29% 29% 30% 26% Adjustedpre-taxoperatingmargin -Non-GAAP (d) 32% 32% 31% 34% 30% 30% 33% 33% 34% 34% 35% 31%

(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, 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 amortization of intangible assets, provision for credit losses, and distribution and servicing expense. See "Supplemental information - Explanation of GAAP and Non-GAAP financial measures" beginning on page 23 of the

Quarterly Earnings Release for the reconciliation of this Non-GAAP measure. Also, see "Appendix - GAAP to Non-GAAP Reconciliations" beginning on page 17 for the reconciliation of Non-GAAP measures.

10

THE BANK OF NEW YORK MELLON CORPORATIONINVESTMENT SERVICES BUSINESS - 12 Quarter Trend

2015 2016 2017 (dollar amounts in millions unless otherwisenoted) 1stQtr 2ndQtr 3rdQtr 4thQtr 1stQtr 2ndQtr 3rdQtr 4thQtr 1stQtr 2ndQtr 3rdQtr 4thQtr Revenue: Investmentservicesfees Assetservicing-ex.securitieslending $ 979 $ 995 $ 1,001 $ 970 $ 974 $ 1,001 $ 997 $ 999 $ 998 $ 1,019 $ 1,040 $ 1,061 Securitieslendingrevenue 38 43 33 39 42 42 42 44 40 42 41 45 Clearingservices 342 346 345 337 348 350 347 354 375 393 381 400 Issuerservices 231 234 312 199 244 233 336 211 250 241 288 196 Treasuryservices 135 141 135 135 129 137 136 139 139 139 141 136 Totalinvestmentservicesfees 1,725 1,759 1,826 1,680 1,737 1,763 1,858 1,747 1,802 1,834 1,891 1,838

Foreignexchangeandothertradingrevenue 212 181 179 150 168 161 177 157 153 145 154 168 Other(a) 92 117 129 127 125 130 148 128 129 136 142 135

Totalfeeandotherrevenue 2,029 2,057 2,134 1,957 2,030 2,054 2,183 2,032 2,084 2,115 2,187 2,141 Netinterestrevenue 629 667 662 664 679 690 715 713 707 761 777 813

Totalrevenue 2,658 2,724 2,796 2,621 2,709 2,744 2,898 2,745 2,791 2,876 2,964 2,954 Provisionforcreditlosses 7 6 7 8 14 (7) 1 — — (3) (2) (2) Noninterestexpense(ex.intangibleamortization) 1,822 1,874 1,853 1,791 1,770 1,819 1,812 1,786 1,812 1,889 1,837 2,060 Amortizationofintangibleassets 41 40 41 40 38 40 39 38 37 38 37 37 Totalnoninterestexpense 1,863 1,914 1,894 1,831 1,808 1,859 1,851 1,824 1,849 1,927 1,874 2,097

Incomebeforetaxes $ 788 $ 804 $ 895 $ 782 $ 887 $ 892 $ 1,046 $ 921 $ 942 $ 952 $ 1,092 $ 859 Incomebeforetaxes(ex.amortizationofintangibleassets)-Non-GAAP $ 829 $ 844 $ 936 $ 822 $ 925 $ 932 $ 1,085 $ 959 $ 979 $ 990 $ 1,129 $ 896

Averageloans $ 45,071 $ 45,822 $ 46,222 $ 45,844 $ 45,004 $ 43,786 $ 44,329 $ 45,832 $ 42,818 $ 40,931 $ 38,038 $ 38,845 Averageassets $ 287,321 $ 292,264 $ 285,195 $ 281,766 $ 273,289 $ 277,225 $ 275,714 $ 269,036 $ 251,027 $ 254,724 $ 252,461 $ 260,494 Averagedeposits $ 235,524 $ 238,404 $ 232,250 $ 229,241 $ 215,707 $ 221,998 $ 220,316 $ 213,531 $ 197,690 $ 200,417 $ 198,299 $ 204,680 Pre-taxoperatingmargin 30% 30% 32% 30% 33% 33% 36% 34% 34% 33% 37% 29% Adjustedpre-taxoperatingmargin(ex.provisionforcreditlossesandintangibleamortization)-Non-GAAP 31% 31% 34% 32% 35% 34% 37% 35% 35% 34% 38% 30% Investmentservicesfeesasapercentageofnoninterestexpense(ex.intangibleamortization) 95% 94% 99% 94% 98% 97% 103% 98% 99% 97% 103% 89% Assetsundercustodyand/oradministrationatperiodend(in trillions) (b) $ 28.5 $ 28.6 $ 28.5 $ 28.9 $ 29.1 $ 29.5 $ 30.5 $ 29.9 $ 30.6 $ 31.1 $ 32.2 $ 33.3 (c)

Marketvalueofsecuritiesonloanatperiodend(in billions) (d) $ 291 $ 283 $ 288 $ 277 $ 300 $ 278 $ 288 $ 296 $ 314 $ 336 $ 382 $ 408 (a) Other revenue includes investment management fees, financing-related fees, distribution and servicing revenue and investment and other income. (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 $1.1 trillion at March 31, 2015 and June 30, 2015, $1.0 trillion at Sept.

30, 2015 and Dec. 31, 2015, $1.1 trillion at March 31, 2016 and June 30, 2016, $1.2 trillion at Sept. 30, 2016, Dec. 31, 2016, March 31, 2017 and June 30, 2017, and $1.3 trillion at Sept. 30, 2017 and Dec. 31, 2017. (c) Preliminary. (d) 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 $69 billion at March 31, 2015, $68 billion at June 30, 2015, $61 billion at Sept. 30, 2015, $55 billion at Dec. 31, 2015, $56 billion at March 31, 2016 and June 30, 2016, $64 billion at Sept. 30, 2016, $63billion at Dec. 31, 2016, $65 billion at March 31, 2017, $66 billion at June 30, 2017, $68 billion at Sept. 30, 2017 and $71 billion at Dec. 31, 2017.

11

THE BANK OF NEW YORK MELLONOTHER SEGMENT- 12 Quarter Trend

2015 2016 2017


Revenue:

Feeandotherrevenue $ 85 $ 103 $ 59 $ 89 $ 129 $ 95 $ 100 $ 42 $ 72 $ 113 $ 69 $ (247)Netinterestrevenue(expense) 24 35 14 12 4 (5) (23) 38 (1) (22) (20) (36)

Totalrevenue 109 138 73 101 133 90 77 80 71 91 49 (283)Provisionforcreditlosses (4) (15) (7) 159 (3) (3) (20) 1 (8) (4) (2) (5)

Noninterestexpense(ex.amortizationofintangibleassets,M&Iandrestructuring(recoveries)charges) 108 79 97 150 141 53 88 108 106 28 77 134

Amortizationofintangibleassets 1 — 1 — — — — — — — — —M&Iandrestructuring(recoveries)charges (4) 8 (2) (4) (1) 3 — 2 1 — — 1

Totalnoninterestexpense 105 87 96 146 140 56 88 110 107 28 77 135Income(loss)beforetaxes $ 8 $ 66 $ (16) $ (204) $ (4) $ 37 $ 9 $ (31) $ (28) $ 67 $ (26) $ (413)Income(loss)beforetaxes(ex.amortizationofintangibleassets,M&Iandrestructuring(recoveries)charges)-Non-GAAP $ 5 $ 74 $ (17) $ (208) $ (5) $ 40 $ 9 $ (29) $ (27) $ 67 $ (26) $ (412)

Averageloansandleases $ 1,230 $ 2,956 $ 2,656 $ 2,673 $ 1,917 $ 1,703 $ 1,941 $ 2,142 $ 1,341 $ 1,302 $ 1,182 $ 1,114Averageassets $ 49,729 $ 55,601 $ 57,298 $ 55,842 $ 61,294 $ 66,766 $ 45,124 $ 44,577 $ 54,106 $ 56,436 $ 61,559 $ 58,611

12

THE BANK OF NEW YORK MELLON CORPORATION BUSINESSES

Investment Management Investment Services Other Consolidated Results (dollar amounts in millions unless otherwisenoted) 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015

Investmentservicesfees

Assetservicing $ 96 $ 102 $ 89 $ 4,286 $ 4,141 $ 4,098 $ 1 $ 1 $ — $ 4,383 $ 4,244 $ 4,187

Clearingservices — — — 975 1,399 1,370 2 5 5 977 1,404 1,375

Issuerservices — — — 1,549 1,024 976 4 2 2 1,553 1,026 978

Treasuryservices 1 6 9 555 541 546 1 — — 557 547 555

Totalinvestmentservicesfees 97 108 98 7,365 7,105 6,990 8 8 7 7,470 7,221 7,095

Investmentmanagementfees 3,428 3,232 3,263 67 69 70 — — 22 3,495 3,301 3,355

Performancefees 94 60 97 — — — — — 1 94 60 98 Foreignexchangeandothertradingrevenue (35) (81) (13) 620 663 722 83 119 59 668 701 768

Distributionandservicing 207 192 152 (47) (26) 10 — — — 160 166 162

Financing-relatedfees (3) (3) (1) 222 226 222 (3) (4) (1) 216 219 220

Investmentandotherincome (120) (84) (10) 300 262 163 (84) 168 166 96 346 319

Totalfeerevenue 3,668 3,424 3,586 8,527 8,299 8,177 4 (a) 291 (a) 254 (a) 12,199 (a) 12,014 (a) 12,017 (a)

Netsecuritiesgains(losses) — — 1 — — — 3 75 82 3 75 83

Totalfeeandotherrevenue 3,668 3,424 3,587 8,527 8,299 8,177 7 (a) 366 (a) 336 (a) 12,202 (a) 12,089 (a) 12,100 (a)

Netinterestrevenue(expense) 329 327 319 3,058 2,797 2,622 (79) 14 85 3,308 3,138 3,026

Totalrevenue 3,997 3,751 3,906 11,585 11,096 10,799 (72) 380 421 15,510 15,227 15,126

Provisionforcreditlosses 2 6 (1) (7) 8 28 (19) (25) 133 (24) (11) 160 Noninterestexpense(ex.amortizationofintangibleassets) 2,794 2,696 2,762 7,598 7,187 7,340 347 394 432 10,739 10,277 10,534

Amortizationofintangibleassets 60 82 97 149 155 162 — — 2 209 237 261

Totalnoninterestexpense 2,854 2,778 2,859 7,747 7,342 7,502 347 394 434 10,948 10,514 10,795 Income(loss)beforetaxesandnoncontrollinginterest $ 1,141 $ 967 $ 1,048 $ 3,845 $ 3,746 $ 3,269 $ (400) (a) $ 11 (a) $ (146) (a) $ 4,586 (a) $ 4,724 (a) $ 4,171 (a)Income(loss)beforetaxes(ex.amortizationofintangibleassets)-Non-GAAP $ 1,201 $ 1,049 $ 1,145 $ 3,994 $ 3,901 $ 3,431 $ (400) (a) $ 11 (a) $ (144) (a) $ 4,795 (a) $ 4,961 (a) $ 4,432 (a) Averageloans $ 16,565 $ 15,015 $ 12,545 $ 40,142 $ 44,740 $ 45,743 $ 1,232 $ 1,926 $ 2,384 $ 57,939 $ 61,681 $ 60,672

Averageassets $ 31,450 $ 30,170 $ 30,928 $ 254,646 $273,808 $286,617 $ 57,752 $ 54,500 $ 54,642 $ 343,848 $ 358,478 $ 372,187

Averagedeposits $ 13,615 $ 15,650 $ 15,160 $ 200,235 $217,882 $233,833 $ 936 $ 6,127 $ 2,441 $ 214,786 $ 239,659 $ 251,434 Assetsundermanagementatperiodend(inbillions) (b) $ 1,893 $ 1,648 $ 1,625 $ — $ — $ — $ — $ — $ — $ 1,893 $ 1,648 $ 1,625 Assetsundercustodyand/oradministrationatperiodend(in trillions) (c) $ — $ — $ — $ 33.3 $ 29.9 $ 28.9 $ — $ — $ — $ 33.3 $ 29.9 $ 28.9 Marketvalueofsecuritiesonloanatperiodend(in billions) (d) $ — $ — $ — $ 408 $ 296 $ 277 $ — $ — $ — $ 408 $ 296 $ 277 Pre-taxoperatingmargin 29% 26% 27% 33% 34% 30% N/M N/M N/M 30% 31% 28%

Memo: Securitieslendingrevenue $ 195 $ 207 $ 176

(a) Total fee and other revenue and income before taxes for the years 2015, 2016 and 2017 include income from consolidated investment management funds of $86 million, $26 million and $70 million, respectively, net of income attributable tononcontrolling interests of $64 million, $1 million and $24 million respectively. The net of these income statement line items of $18 million, $16 million and $37 million, respectively, are included above in fee and other revenue. The years2015, 2016 and 2017 include losses attributable to noncontrolling interest of $4 million, $9 million and $9 million, respectively, related to other consolidated subsidiaries.

(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 InvestmentManagement business to the Other segment.

(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 $1.0 trillion at Dec. 31, 2015, $1.2 trillion at Dec. 31, 2016 and $1.3 trillion at Dec. 31,2017.

(d) 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, whichtotaled $55 billion at Dec. 31, 2015, $63 billion at Dec. 31, 2016 and $71 billion at Dec. 31, 2017.

Note: See pages 10 through 12 for businesses results.N/M - Not meaningful

13

THE BANK OF NEW YORK MELLON CORPORATIONNONPERFORMING ASSETS - 12 Quarter Trend

2015 2016 2017

(dollar amounts in millions) March31 June30 Sept.30 Dec.31 March31 June30 Sept.30 Dec.31 March31 June30 Sept.30 Dec.31

Nonperformingloans:

Otherresidentialmortgages $ 111 $ 110 $ 103 $ 102 $ 99 $ 97 $ 93 $ 91 $ 88 $ 84 $ 80 $ 78Wealthmanagementloansandmortgages 12 11 12 11 11 10 7 8 10 10 8 7Commercialrealestate 1 1 1 2 2 2 1 — — — — 1Leasefinancing — — — — — 4 4 4 — — — —Commercial — — — — 5 — — — — — — —Financialinstitutions — — — 171 171 171 — — — 2 2 —

Totalnonperformingloans 124 122 116 286 288 284 105 103 98 96 90 86Otherassetsowned 4 5 7 6 4 5 4 4 9 4 4 4

Totalnonperformingassets(a) $ 128 $ 127 $ 123 $ 292 $ 292 $ 289 $ 109 $ 107 $ 107 $ 100 $ 94 $ 90

Nonperformingassetsratio 0.21% 0.20% 0.20% 0.46% 0.48% 0.45% 0.17% 0.17% 0.18% 0.16% 0.16% 0.15%Nonperformingassetsratioexcludingmarginloans 0.30 0.30 0.28 0.67 0.69 0.63 0.23 0.23 0.24 0.21 0.21 0.15Allowanceforloanlosses/nonperformingloans 153.2 150.0 156.0 54.9 56.3 55.6 141.0 164.1 167.3 171.9 178.9 184.9Allowanceforloanlosses/nonperformingassets 148.4 144.1 147.2 53.8 55.5 54.7 135.8 157.9 153.3 165.0 171.3 176.7Totalallowanceforcreditlosses/nonperformingloans 228.2 227.9 241.4 96.2 99.7 98.6 261.0 272.8 281.6 281.3 294.4 303.5Totalallowanceforcreditlosses/nonperformingassets 221.1 218.9 227.6 94.2 98.3 96.9 251.4 262.6 257.9 270.0 281.9 290.0

(a) Loans of consolidated investment management funds are not part of BNY Mellon's loan portfolio. In 2Q15, BNY Mellon adopted the new accounting guidance included in ASU 2015-02, Consolidations. As a result, wedeconsolidated substantially all of the loans of consolidated investment management funds retroactively to Jan.1, 2015.

14

THE BANK OF NEW YORK MELLON CORPORATIONALLOWANCE FOR CREDIT LOSSES, PROVISION AND NET CHARGE-OFFS - 12 Quarter Trend

2015 2016 2017

(dollar amounts in millions) March31 June30 Sept.30 Dec.31 March31 June30 Sept.30 Dec.31 March31 June30 Sept.30 Dec.31

Allowanceforcreditlosses:

Allowanceforcreditlosses $ 191 $ 190 $ 183 $ 181 $ 157 $ 162 $ 158 $ 148 $ 169 $ 164 $ 165 $ 161Allowanceforlending-relatedcommitments 89 93 95 99 118 125 122 126 112 112 105 104Allowanceforcreditlosses-beginningofperiod $ 280 $ 283 $ 278 $ 280 $ 275 $ 287 $ 280 $ 274 $ 281 $ 276 $ 270 $ 265

Net(charge-offs)recoveries: Charge-offs — — — (170) — — (1) (1) (1) — — —Recoveries 1 1 1 2 2 2 14 1 1 1 1 2

Totalnet(charge-offs)recoveries 1 1 1 (168) 2 2 13 — — 1 1 2 Provisionforcreditlosses 2 (6) 1 163 10 (9) (19) 7 (5) (7) (6) (6)

Allowanceforcreditlosses-endofperiod $ 283 $ 278 $ 280 $ 275 $ 287 $ 280 $ 274 $ 281 $ 276 $ 270 $ 265 $ 261

Allowanceforloanlosses $ 190 $ 183 $ 181 $ 157 $ 162 $ 158 $ 148 $ 169 $ 164 $ 165 $ 161 $ 159Allowanceforlending-relatedcommitments 93 95 99 118 125 122 126 112 112 105 104 102Allowanceforcreditlosses-endofperiod $ 283 $ 278 $ 280 $ 275 $ 287 $ 280 $ 274 $ 281 $ 276 $ 270 $ 265 $ 261

Allowanceforloanlossesasapercentageoftotalloans 0.31% 0.29% 0.29% 0.25% 0.26% 0.25% 0.22% 0.26% 0.27% 0.27% 0.27% 0.26%

15

THE BANK OF NEW YORK MELLON CORPORATIONQuarterly Financial TrendsJanuary 18, 2018

Notes:The following transactions/changes have impacted the reporting of our results: Inthefirstquarterof2016,resultsofcredit-relatedactivitieswerereclassifiedfromtheOthersegmenttotheInvestmentServicessegment.Also,concurrentwiththisreclassification,theprovisionforcreditlossesassociatedwiththerespectivecreditportfoliosisnowreflectedineachbusinesssegment.Allpriorperiodshavebeenrestated. Beginninginthefirstquarterof2016,werevisedthenetinterestrevenueforourbusinesstoreflectadjustmentstoourtransferpricingmethodologytobetterreflectthevalueofcertaindeposits.Thischangedidnotimpacttheconsolidatedresults. Beginninginthefirstquarterof2016,werefinedtheexpenseallocationprocessforindirectexpensestosimplifytheexpensesrecordedintheOthersegmenttoincludeonlyexpensesnotdirectlyattributabletotheInvestmentManagementandInvestmentServicesoperations.Thischangedidnotimpacttheconsolidatedresults. Inthethirdquarterof2015,resultsofMeritenwerereclassifiedfromtheInvestmentManagementbusinesstotheOthersegment.MeritenInvestmentManagementwassoldinJuly2015. Thefirstquarterof2015wasrestatedtoreflecttheretrospectiveapplicationofadoptingnewaccountingguidancerelatedtoConsolidations(ASU2015-02). Certainimmaterialreclassifications/revisionshavebeenmadetopriorperiodstoplacethemonabasiscomparablewiththecurrentperiod'spresentation. Inbusinesseswhereaveragedepositsaregreaterthanaverageloans,averageassetsincludeanallocationofinvestmentsecuritiesequaltothedifference. Quarterlyreturnoncommonandtangiblecommonequityratiosareannualized. Non-GAAP Measures:CertainNon-GAAPmeasuresareincludedinthisdocument.Thesemeasuresareusedbymanagementtomonitorfinancialperformance,bothonacompany-wideandonabusinessbasis.TheseNon-GAAPmeasuresrelatetocertainrevenue/expensecategories,impairmentcharge(recovery)relatedtoSentinel,percentagesandratiosasdescribedinfootnotes.Forfurtherinformation,see"Supplementalinformation--ExplanationofGAAPandNon-GAAPFinancialMeasures"intheQuarterlyEarningsRelease.Also,see"Appendix-GAAPtoNon-GAAPReconciliations"beginningonpage17forthereconciliationofNon-GAAPmeasures.Summationsmaynotequalduetorounding.Asaresultofourroundingconventionandreclassificationsnotedabove,differencesmayexistbetweenthebusinesstrendsdataversusbusinessdataintheForm10-QsorotherreportsfiledwiththeSEC.

16

Appendix - GAAP to Non-GAAP Reconciliations

17

THE BANK OF NEW YORK MELLON CORPORATION SUPPLEMENTAL INFORMATION – EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES

BNYMellonhasincludedintheseQuarterlyFinancialTrendscertainNon-GAAPfinancialmeasuresbasedontangiblecommonshareholders’equity.Thetangiblecommonshareholders’equityratio,whichexcludesgoodwillandintangibleassets,netofdeferredtaxliabilities,includeschangesininvestmentsecuritiesvaluationswhicharereflectedintotalshareholders’equity.BNYMellonbelievesthatthereturnontangiblecommonequitymeasure,whichexcludesgoodwillandintangibleassetsnetofdeferredtaxliabilities,isausefuladditionalmeasureforinvestorsbecauseitpresentsameasureofthoseassetsthatcangenerateincome.

BNYMellonhaspresentedrevenuemeasures,whichexcludetheeffectofnoncontrollinginterestsrelatedtoconsolidatedinvestmentmanagementfunds,andexpensemeasures,whichexcludeM&I,litigationandrestructuringchargesandamortizationofintangibleassets.Returnontangiblecommonequityandoperatingmarginmeasures,whichexcludesomeoralloftheseitems,aswellastheimpairmentcharge(recovery)relatedtoSentinel,arealsopresented.Operatingmarginmeasuresmayalsoexcludetheprovisionforcreditlossesanddistributionandservicingexpense.BNYMellonbelievesthatthesemeasuresareusefultoinvestorsbecausetheypermitafocusonperiod-to-periodcomparisons,whichrelatetotheabilityofBNYMellontoenhancerevenuesandlimitexpensesincircumstanceswheresuchmattersarewithinBNYMellon’scontrol.M&Iexpensesprimarilyrelatetoacquisitionsandgenerallycontinueforapproximatelythreeyearsafterthetransaction.Litigationchargesrepresentaccrualsforlosscontingenciesthatarebothprobableandreasonablyestimable,butexcludestandardbusiness-relatedlegalfees.RestructuringchargesrelatetoourstreamliningactionsandOperationalExcellenceInitiatives.Excludingthesechargesmentionedabovepermitsinvestorstoviewexpensesonabasisconsistentwithhowmanagementviewsthebusiness.

Thepresentationofincome(loss)fromconsolidatedinvestmentmanagementfunds,netofnetincome(loss)attributabletononcontrollinginterestsrelatedtotheconsolidationofcertaininvestmentmanagementfundspermitsinvestorstoviewrevenueonabasisconsistentwithhowmanagementviewsthebusiness.BNYMellonbelievesthatthesepresentations,asasupplementtoGAAPinformation,giveinvestorsaclearerpictureoftheresultsofitsprimarybusinesses.

Netinterestrevenue(FTE)–Non-GAAPandnetinterestmargin(FTE)–Non-GAAPincludethetaxequivalentadjustmentsontax-exemptincomewhichallowsforcomparisonsofamountsarisingfrombothtaxableandtax-exemptsourcesandisconsistentwithindustrypractice.TheadjustmenttoanFTEbasishasnoimpactonnetincome.

18

THE BANK OF NEW YORK MELLONCORPORATION PRE-TAX OPERATING MARGIN RATIO RECONCILIATION - 12 QUARTER TREND

2015 2016 2017


Incomebeforeincometaxes–GAAP $ 1,090 $ 1,165 $ 1,109 $ 871 $ 1,091 1,165 1,317 $ 1,152 $ 1,206 $ 1,308 $ 1,368 $ 728Less:Netincome(loss)attributabletononcontrollinginterestsofconsolidatedinvestmentmanagementfunds 31 37 (5) 5 (7) 4 9 4 18 3 3 9Add:Amortizationofintangibleassets 66 65 66 64 57 59 61 60 52 53 52 52

M&I,litigationandrestructuringcharges(recoveries) (3) 59 11 18 17 7 18 7 8 12 6 80Impairmentcharge(recovery)relatedtoSentinel — — — 170 — — (13) — — — — —

Incomebeforeincometaxes,asadjusted–Non-GAAP (a) $ 1,122 $ 1,252 $ 1,191 $ 1,118 $ 1,172 $ 1,227 $ 1,374 $ 1,215 $ 1,248 $ 1,370 $ 1,423 $ 851

Feeandotherrevenue–GAAP $ 3,012 $ 3,067 $ 3,053 $ 2,950 $ 2,970 $ 2,999 $ 3,150 $ 2,954 $ 3,018 $ 3,120 $ 3,167 $ 2,860Income(loss)fromconsolidatedinvestmentmanagementfunds–GAAP 52 40 (22) 16 (6) 10 17 5 33 10 10 17Netinterestrevenue–GAAP 728 779 759 760 766 767 774 831 792 826 839 851

Totalrevenue–GAAP 3,792 3,886 3,790 3,726 3,730 3,776 3,941 3,790 3,843 3,956 4,016 3,728Less:Netincome(loss)attributabletononcontrollinginterestsofconsolidatedinvestmentmanagementfunds 31 37 (5) 5 (7) 4 9 4 18 3 3 9

Totalrevenue,asadjusted–Non-GAAP (a) $ 3,761 $ 3,849 $ 3,795 $ 3,721 $ 3,737 $ 3,772 $ 3,932 $ 3,786 $ 3,825 $ 3,953 $ 4,013 $ 3,719 Pre-taxoperatingmargin - GAAP (b)(c) 29% 30% 29% 23% 29% 31% 33% 30% 31% 33% 34% 20%Adjustedpre-taxoperatingmargin–Non-GAAP(a)(b)(c) 30% 33% 31% 30% 31% 33% 35% 32% 33% 35% 35% 23% (a) Non-GAAP information for all periods presented excludes net income (loss) attributable to noncontrolling interests of consolidated investment management funds, amortization of intangible assets and M&I, litigation and restructuringcharges. Non-GAAP information for 4Q15 also excludes the impairment charge related to a court decision regarding Sentinel. Non-GAAP information for 3Q16 also excludes a recovery of the previously impaired Sentinel loan.(b) Income before taxes divided by total revenue.(c) Our GAAP earnings include tax-advantaged investments such as low income housing, renewable energy, corporate/bank-owned life insurance and tax-exempt securities. The benefits of these investments are primarily reflected intax expense. If reported on a tax-equivalent basis, beginning with 2015, these investments would increase revenue and income before taxes by $64 million for 1Q15, $52 million for 2Q15, $53 million for 3Q15, $73 million for 4Q15, $77million for 1Q16, $74 million for 2Q16, $74 million for 3Q16, $92 million for 4Q16, $101 million for 1Q17, $106 million for 2Q17, $102 million for 3Q17 and $66 million for 4Q17, and would increase our pre-tax operating margin byapproximately 1.2% for 1Q15, 0.9% for 2Q15, 1.0% for 3Q15, 1.5% for 4Q15, 1.4% for 1Q16, 1.3% for 2Q16, 1.2% for 3Q16, 1.7% for 4Q16, 1.8% for 1Q17 and 2Q17, 1.6% for 3Q17 and 1.4% for 4Q17.

19

THE BANK OF NEW YORK MELLONCORPORATION RETURN ON TANGIBLE COMMON EQUITY RECONCILIATION - 12 QUARTER TREND

2015 2016 2017


NetincomeapplicabletocommonshareholdersofTheBankofNewYorkMellonCorporation–GAAP $ 766 $ 830 $ 820 $ 637 $ 804 $ 825 $ 974 $ 822 $ 880 $ 926 $ 983 $ 1,126Add:Amortizationofintangibleassets 66 65 66 64 57 59 61 60 52 53 52 52Less:Taximpactofamortizationofintangibleassets 23 21 23 22 20 21 21 19 18 19 17 18NetincomeapplicabletocommonshareholdersofTheBankofNewYorkMellonCorporationexcludingamortizationofintangibleassets–Non-GAAP $ 809 $ 874 $ 863 $ 679 $ 841 $ 863 $ 1,014 $ 863 $ 914 $ 960 $ 1,018 $ 1,160

Averagecommonshareholders’equity $ 35,486 $ 35,516 $ 35,588 $ 35,664 $ 35,252 $ 35,827 $ 35,767 $ 35,171 $ 34,965 $ 35,862 $ 36,780 $ 36,952Less:Averagegoodwill 17,756 17,752 17,742 17,673 17,562 17,622 17,463 17,344 17,338 17,408 17,497 17,518

Averageintangibleassets 4,088 4,031 3,962 3,887 3,812 3,789 3,711 3,638 3,578 3,532 3,487 3,437Add:Deferredtaxliability–taxdeductiblegoodwill(a) 1,362 1,351 1,379 1,401 1,428 1,452 1,477 1,497 1,518 1,542 1,561 1,034

Deferredtaxliability–intangibleassets(a) 1,200 1,179 1,164 1,148 1,140 1,129 1,116 1,105 1,100 1,095 1,092 718Averagetangiblecommonshareholders’equity–Non-GAAP $ 16,204 $ 16,263 $ 16,427 $ 16,653 $ 16,446 $ 16,997 $ 17,186 $ 16,791 $ 16,667 $ 17,559 $ 18,449 $ 17,749 Returnontangiblecommonequity–Non-GAAP (b) 20.3% 21.5% 20.8% 16.2% 20.6% 20.4% 23.5% 20.4% 22.2% 21.9% 21.9% 25.9% (a) Deferred tax liabilities are based on fully phased-in Basel III capital rules. Deferred tax liabilities at Dec. 31, 2017 have been remeasured at the lower statutory corporate tax rate.(b) Quarterly returns are annualized.

20

THE BANK OF NEW YORK MELLONCORPORATION NONINTEREST EXPENSE RECONCILIATION - 12 QUARTER TREND

2015 2016 2017


Totalnoninterestexpense-GAAP $ 2,700 $ 2,727 $ 2,680 $ 2,692 $ 2,629 $ 2,620 $ 2,643 $ 2,631 $ 2,642 $ 2,655 $ 2,654 $ 3,006Less:Amortizationofintangibleassets 66 65 66 64 57 59 61 60 52 53 52 52M&I,litigationandrestructuringcharges(recoveries) (3) 59 11 18 17 7 18 7 8 12 6 80

TotalnoninterestexpenseexcludingamortizationofintangibleassetsandM&I,litigationandrestructuringcharges(recoveries)-Non-GAAP $ 2,637 $ 2,603 $ 2,603 $ 2,610 $ 2,555 $ 2,554 $ 2,564 $ 2,564 $ 2,582 $ 2,590 $ 2,596 $ 2,874

21

THE BANK OF NEW YORK MELLONCORPORATION PRE-TAX OPERATING MARGIN - INVESTMENT MANAGEMENT BUSINESS - 12 QUARTER TREND

2015 2016 2017


Incomebeforeincometaxes–GAAP $ 263 $ 259 $ 236 $ 290 $ 217 $ 234 $ 256 $ 260 $ 277 $ 288 $ 300 $ 276Add:Amortizationofintangibleassets 24 25 24 24 19 19 22 22 15 15 15 15Provisionforcreditlosses (1) 3 1 (4) (1) 1 — 6 3 — (2) 1Adjustedincomebeforeincometaxesexcludingamortizationofintangibleassetsandprovisionforcreditlosses–Non-GAAP $ 286 $ 287 $ 261 $ 310 $ 235 $ 254 $ 278 $ 288 $ 295 $ 303 $ 313 $ 292 Totalrevenue–GAAP $ 994 $ 987 $ 926 $ 999 $ 895 $ 938 $ 958 $ 960 $ 963 $ 986 $ 1,000 $ 1,048Less:Distributionandservicingexpense 97 95 94 92 100 102 104 98 101 104 110 107Adjustedtotalrevenuenetofdistributionandservicingexpense–Non-GAAP $ 897 $ 892 $ 832 $ 907 $ 795 $ 836 $ 854 $ 862 $ 862 $ 882 $ 890 $ 941 Pre-taxoperatingmargin-GAAP(a) 26% 26% 25% 29% 24% 25% 27% 27% 29% 29% 30% 26%Adjustedpre-taxoperatingmarginexcludingamortizationofintangibleassets,provisionforcreditlosses,anddistributionandservicingexpense–Non-GAAP(a) 32% 32% 31% 34% 30% 30% 33% 33% 34% 34% 35% 31%

(a) Income before taxes divided by total revenue.

22

THE BANK OF NEW YORK MELLON CORPORATION NET INTEREST MARGIN RECONCILIATION - 12 QUARTER TREND

2015 2016 2017


Netinterestrevenue-GAAP $ 728 $ 779 $ 759 $ 760 $ 766 $ 767 $ 774 $ 831 $ 792 $ 826 $ 839 $ 851Add:Taxequivalentadjustment 15 15 14 14 14 13 12 12 12 12 12 11

Netinterestrevenue-(FTE)-Non-GAAP $ 743 $ 794 $ 773 $ 774 $ 780 $ 780 $ 786 $ 843 $ 804 $ 838 $ 851 $ 862 Averageinterest-earningassets $ 308,104 $ 318,596 $ 315,672 $ 312,610 $ 310,678 $ 318,433 $ 296,703 $ 287,947 $ 283,421 $ 289,496 $ 291,841 $ 297,166 Netinterestmargin-GAAP(a) 0.95% 0.98% 0.96% 0.97% 0.99% 0.97% 1.05% 1.16% 1.13% 1.14% 1.15% 1.14%Netinterestmargin-(FTE)-Non-GAAP(a) 0.97% 1.00% 0.98% 0.99% 1.01% 0.98% 1.06% 1.17% 1.14% 1.16% 1.16% 1.16%

(a) Net interest margin is annualized.

23

BNY Mellon Fourth Quarter 2017 Financial Highlights January 18, 2018

2 Fourth Quarter 2017 – Financial Highlights Cautionary Statement A number of statements in the accompanying slides and the responses to your questions are “forward-looking statements.” Words such as “estimate”, “forecast”, “project”, “anticipate”, “likely”, “target”, “expect”, “intend”, “continue”, “seek”, “believe”, “plan”, “goal”, “could”, “should”, “may”, “will”, “strategy”, “opportunities”, “trends” and words of similar meaning signify forward-looking statements. These statements relate to, among other things, The Bank of New York Mellon Corporation’s (the “Corporation”) expectations regarding: estimated capital ratios and expectations regarding those ratios, preliminary business metrics; estimated impact of U.S. tax legislation, including the effective tax rate, and statements regarding the Corporation's aspirations, as well as the Corporation’s overall plans, strategies, goals, objectives, expectations, estimates, intentions, targets, opportunities and initiatives. These forward-looking statements are based on assumptions that involve risks and uncertainties and that are subject to change based on various important factors (some of which are beyond the Corporation’s control). Actual results may differ materially from those expressed or implied as a result of the factors described under “Forward Looking Statements” and “Risk Factors” in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Annual Report”) and Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 (the “Form 10-Q”), and in other filings of the Corporation with the Securities and Exchange Commission (the “SEC”), including the Corporation’s Earnings Release for the quarter ended December 31, 2017, included as an exhibit to our Current Report on Form 8-K filed on January 18, 2018 (the “Earnings Release”). Such forward-looking statements speak only as of January 18, 2018, and the Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events. Non-GAAP Measures: In this presentation we may discuss some non-GAAP measures in detailing the Corporation’s performance, which exclude certain items or otherwise include components that differ from GAAP. We believe these measures are useful to the investment community in analyzing the financial results and trends of ongoing operations. We believe they facilitate comparisons with prior periods and reflect the principal basis on which our management monitors financial performance. Additional disclosures relating to non-GAAP measures are contained in the Corporation’s reports filed with the SEC, including the 2016 Annual Report, the Form 10-Q and the Earnings Release, available at www.bnymellon.com/investorrelations.

3 Fourth Quarter 2017 – Financial Highlights Summary Financial Results for 2017 - GAAP • Fourth quarter earnings of $1.13 billion, or $1.08 per common share • Total revenue of $3.7 billion, down 2% ◦ Includes a $320 million negative impact related to the U.S. tax legislation and other charges1; which decreased total revenue growth by 8% • Total expense of $3.0 billion, up 14% ◦ Includes $282 million pre-tax impact for severance, litigation and other charges1; which increased total expense growth by 11% • Full-year 2017 earnings of $3.9 billion, or $3.72 per common share, an increase of 18% • Total revenue of $15.5 billion, up 2% • Total expense of $11.0 billion, up 4% • Includes the impact of U.S. tax legislation, severance, litigation and other charges1; which decreased revenue growth by 2% and increased expense growth by 3% • These items increased earnings per share growth by 5% • In the fourth quarter nearly $900 million through share repurchases and dividends and $3.6 billion in full-year 2017 • The significant items below impacted the fourth quarter Significant items in the quarter2 ($ in millions, except per share data) Revenue Expense Net Income EPS U.S. tax legislation $ (283) $ — $ 427 $ 0.41 Total other charges3 (37) 282 (246) (0.24) 1 Other charges include an asset impairment and investment securities losses related to the sale of certain securities. 2 See Appendix for additional details regarding the impact of significant items in 4Q17. 3Total other charges includes severance, litigation, an asset impairment and investment securities losses related to the sale of certain securities.

4 Fourth Quarter 2017 – Financial Highlights Financial Results for Fourth Quarter 2017 - GAAP Growth vs. ($ in millions, except per share data) 4Q17 3Q17 4Q16 3Q17 4Q16 Revenue $3,728 $4,016 $3,790 (7)% (2)% Expense $3,006 $2,654 $2,631 13% 14% Income before income taxes $ 728 $1,368 $1,152 (47)% (37)% Pre-tax operating margin2 20% 34% 30% EPS $ 1.08 $ 0.94 $ 0.77 15% 40% Return on common equity1 12.1% 10.6% 9.3% +149bps +280 bps 1 Annualized. 2 Our GAAP earnings include tax-advantaged investments such as low income housing, renewable energy, corporate/bank-owned life insurance and tax-exempt securities. The benefits of these investments are primarily reflected in tax expense. If reported on a tax-equivalent basis, these investments would increase revenue and income before taxes by $66 million for 4Q17, $102 million for 3Q17 and $92 million for 4Q16 and would increase our pre-tax operating margin by approximately 1.4% for 4Q17, 1.6% and 3Q17, and 1.7% for 4Q16. 3 Other charges include an asset impairment and investment securities losses related to the sale of certain securities. Note: Provision for credit losses was a credit of $6 million in 4Q17, a credit of $6 million in 3Q17 and $7 million in 4Q16. bps - basis points • Revenue ◦ Includes a $320 million negative impact related to the U.S. tax legislation and other charges3; which decreased total revenue growth by 8% ▪ $279 million negative impact from U.S. tax legislation included in investment and other income • Expense ◦ Includes $282 million pre-tax impact for severance, litigation and other charges3; which increased expense growth by 11% Commentary

5 Fourth Quarter 2017 – Financial Highlights Estimated U.S. Tax Legislation Impact1 1 Our estimate of the impact of U.S. tax legislation is based on certain assumptions and our current interpretation of the Tax Cuts and Jobs Act, and may change, possibly materially, as we refine our analysis and as further information becomes available. 2 Excluding deferred tax liabilities related to energy investments. • Regulatory capital decreased by $551 million driven by the repatriation tax, offset by the tax benefit related to the remeasurement of certain deferred tax liabilities Commentary • New U.S. tax legislation is expected to stimulate economic activity which should be positive for business • Effective tax rate for 2018 expected to be approximately 21% • Base Erosion Anti-abuse Tax (“BEAT”) not expected to have an impact in 2018. Impact beyond 2018 uncertain, but currently expect it to be immaterial • Capital and liquidity requirements for our Non-U.S. entities currently expected to limit amount of funds that will be repatriated • Capital distribution plans for the first half of 2018 not impacted; the remainder of the year’s buybacks is subject to the CCAR process • Increased net income by an estimated $427 million US Tax Cuts and Job Act Impact ($ in millions) Total Revenue Income Taxes Net Income Remeasurement of net deferred tax liabilities2 $ — $ 1,191 $ 1,191 Repatriation tax — (723) (723) Other items (4) (39) (43) Renewable energy investments (279) 281 2 $ (283) $ 710 $ 427 • U.S. tax legislation on renewable energy investments was de minimis to net income; pre-tax accounting resulted in a reduction of $279 million recorded in investments and other income which was offset by the tax benefit from remeasurement of associated deferred tax liabilities

6 Fourth Quarter 2017 – Financial Highlights Financial Results for Full Year 2017 - GAAP Growth vs. ($ in millions, except per share data) FY17 FY16 FY16 Revenue $ 15,543 $ 15,237 2% Expense $ 10,957 $ 10,523 4% Operating leverage1 (211) bps Income before income taxes $ 4,610 $ 4,725 (2)% Pre-tax operating margin2 30% 31% EPS $ 3.72 $ 3.15 18% Return on common equity 10.8% 9.6% +119 bps 1 Operating leverage is the rate of increase in total revenue less the rate of increase (or decrease) in total noninterest expense. The year-over-year operating leverage was based on an increase in total revenue of 201 basis points, and an increase in total noninterest expense, of 412 basis points. 2 Our GAAP earnings include tax-advantaged investments such as low income housing, renewable energy, corporate/bank-owned life insurance and tax-exempt securities. The benefits of these investments are primarily reflected in tax expense. If reported on a tax-equivalent basis, these investments would increase revenue and income before taxes by $375 million for FY17 and $317 million for FY16 and would increase our pre-tax operating margin by approximately 1.7% for FY17 and 1.4% for FY16. 3 Other charges include an asset impairment and investment securities losses related to the sale of certain securities. Note: Provision for credit losses was a credit of $24 million in FY17 and a credit of $11 million in FY16. bps - basis points Commentary • Includes impact of U.S. tax legislation, severance, litigation and other charges3; which decreased revenue growth by 2% and increased expense growth by 3%

7 Fourth Quarter 2017 – Financial Highlights Fee and Other Revenue - GAAP (Consolidated) Growth vs. ($ in millions) 4Q17 3Q17 4Q16 Investment services fees: Asset servicing1 $ 1,130 2% 6% Clearing services 400 4 13 Issuer services 197 (32) (7) Treasury services 137 (3) (2) Total investment services fees 1,864 (3) 5 Investment management and performance fees 962 7 13 Foreign exchange and other trading revenue 166 (4) 3 Financing-related fees 54 — 8 Distribution and servicing 38 (5) (7) Investment and other (loss) income (198) N/M N/M Total fee revenue 2,886 (8) (2) Net securities (losses) gains (26) N/M N/M Total fee and other revenue $ 2,860 (10)% (3)% 1 Asset servicing fees include securities lending revenue of $51 million in 4Q17, $47 million in 3Q17, and $54 million in 4Q16. N/M - not meaningful

8 Fourth Quarter 2017 – Financial Highlights Investment Management Metrics Change in Assets Under Management (AUM)1, 2 Growth vs. ($ in billions) 4Q17 LTM 4Q17 3Q17 4Q16 Beginning balance of AUM $ 1,824 $ 1,648 Net inflows (outflows): Long-term strategies: Equity (6) (14) Fixed income (2) 6 Liability-driven investments3 23 50 Multi-asset and alternative investments 2 8 Total long-term active strategies inflows (outflows) 17 50 Index (1) (17) Total long-term strategies inflows (outflows) 16 33 Short-term strategies: Cash (4) 30 Total net inflows (outflows) 12 63 Net market impact/other 47 106 Net currency impact 10 76 Ending balance of AUM $ 1,893 $ 1,893 4% 15% Average balances Growth vs. ($ in millions) 4Q17 3Q17 4Q16 Average loans $ 16,813 1% 7% Average deposits $ 11,633 (6)% (25)% 1 Changes and ending balance are preliminary. 2 Excludes securities lending cash management assets and assets managed in the Investment Services business. 3 Includes currency overlay assets under management.

9 Fourth Quarter 2017 – Financial Highlights Investment Services Metrics Growth vs. 4Q17 3Q17 4Q16 Assets under custody and/or administration at period end (trillions)1, 2 $ 33.3 3% 11% Estimated new business wins (AUC/A) (billions)1 $ 575 Market value of securities on loan at period end (billions)3 $ 408 7% 38% Average loans (millions) $ 38,845 2% (15)% Average deposits (millions) $ 204,680 3% (4)% Broker-Dealer Average tri-party repo balances (billions) $ 2,606 3% 13% Clearing Services Average active clearing accounts (U.S. platform) (thousands) 6,126 (1)% 3% Average long-term mutual fund assets (U.S. platform) (millions) $ 508,873 2% 16% 1 Preliminary. 2 Includes the AUC/A of CIBC Mellon Global Securities Services Company (“CIBC Mellon”), a joint venture with the Canadian Imperial Bank of Commerce, of $1.3 trillion at Dec. 31, 2017 and Sept. 30, 2017 and $1.2 trillion at Dec. 31, 2016. 3 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 $71 billion at Dec. 31, 2017, $68 billion at Sept. 30, 2017 and $63 billion at Dec. 31, 2016.

10 Fourth Quarter 2017 – Financial Highlights Net Interest Revenue Growth vs. ($ in millions) 4Q17 3Q17 4Q16 Net interest revenue – GAAP $ 851 1% 2% Tax equivalent adjustment 11 N/M N/M Net interest revenue (FTE) – Non-GAAP1 $ 862 1% 2% Net interest margin - GAAP 1.14% (1) bps (2) bps Net interest margin (FTE) – Non-GAAP1 1.16% — bps (1) bps Selected Average Balances: Cash/interbank investments $ 117,446 3% 13% Trading account securities 2,723 15 19 Securities 120,225 1 2 Loans 56,772 1 (11) Interest-earning assets 297,166 2 3 Interest-bearing deposits 147,763 4 1 Noninterest-bearing deposits 69,111 (2) (16) Long-term debt 28,245 — 13 1 Net interest revenue (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP include the tax equivalent adjustments on tax-exempt income which allows for comparisons 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. FTE – fully taxable equivalent; N/M – not meaningful; bps – basis points

11 Fourth Quarter 2017 – Financial Highlights Noninterest Expense Growth vs. ($ in millions) 4Q17 3Q17 4Q16 Staff $ 1,614 10% 16% Professional, legal and other purchased services 338 11 4 Software and equipment 297 27 25 Net occupancy 153 9 — Distribution and servicing 106 (3) 8 Sub-custodian 59 (5) 4 Business development 66 35 (7) Bank assessment charges 53 4 — Other 188 6 7 Amortization of intangible assets 52 — (13) M&I, litigation and restructuring charges 80 N/M N/M Total noninterest expense – GAAP $ 3,006 13% 14% Adjusted total noninterest expense excluding amortization of intangible assets and M&I, litigation and restructuring charges – Non-GAAP $ 2,874 11% 12% Full-time employees 52,500 (400) 500 Staff expense as a percentage of total revenue 43% N/M - not meaningful

12 Fourth Quarter 2017 – Financial Highlights Capital Ratios 12/31/17 09/30/17 12/31/16 Consolidated regulatory capital ratios:1 Standardized Approach: CET1 ratio 12.0% 12.3% 12.3% Tier 1 capital ratio 14.2 14.6 14.5 Total (Tier 1 plus Tier 2) capital ratio 15.1 15.6 15.2 Advanced Approach: CET1 ratio 10.7 11.1 10.6 Tier 1 capital ratio 12.7 13.2 12.6 Total (Tier 1 plus Tier 2) capital ratio 13.4 14.0 13.0 Leverage capital ratio2 6.6 6.8 6.6 Supplementary leverage ratio ("SLR") 6.1 6.3 6.0 BNY Mellon shareholders’ equity to total asset ratio 11.1 11.4 11.6 BNY Mellon common shareholders’ equity to total assets ratio 10.1 10.4 10.6 Selected regulatory capital ratios – fully phased-in – Non-GAAP:1, 3, 4 CET1 ratio: Standardized Approach 11.5% 11.9% 11.3% Advanced Approach 10.3 10.7 9.7 SLR 5.9 6.1 5.6 Note: See corresponding footnotes on following slide.

13 Fourth Quarter 2017 – Financial Highlights Capital Ratio Footnotes 1 Dec. 31, 2017 regulatory capital ratios are preliminary. See the “Capital and Liquidity” section in the earnings release for additional detail. 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. 2 The leverage capital ratio is based on Tier 1 capital, as phased-in and quarterly average total assets. 3 Please reference slides 20 & 21. See the “Capital and Liquidity” section in the earnings release for additional detail. 4 Estimated. Liquidity Coverage Ratio (“LCR”) The U.S. LCR rules became fully phased-in on Jan. 1, 2017 and require BNY Mellon to meet an LCR of 100%. On a consolidated basis, our average LCR was 118% for 4Q17. High-quality liquid assets (“HQLA”) before haircuts and trapped liquidity, totaled $193 billion at Dec. 31, 2017 and averaged $170 billion for 4Q17.

Appendix

15 Fourth Quarter 2017 – Financial Highlights Fourth Quarter Impact of Significant Items - Consolidated ($ in millions, except per share data) Results - GAAP U.S. tax legislation Other charges1 Fee and other revenue $ 2,860 $ (279) $ (37) Income from consolidated investment management funds 17 — — Net interest revenue 851 (4) — Total revenue 3,728 (283) (37) Provision for credit losses (6) — — Total noninterest expense 3,006 — 282 Income before taxes 728 (283) (319) (Benefit) provision for income taxes (453) (710) (73) Net income 1,181 427 (246) Diluted earnings per common share $ 1.08 $ 0.41 $ (0.24) 1 Other charges include severance, litigation, an asset impairment and investment securities losses related to the sale of certain securities. Our estimate of the impact of U.S. tax legislation is based on certain assumptions and our current interpretation of the Tax Cuts and Jobs Act, and may change, possibly materially, as we refine our analysis and as further information becomes available. $ in billions Investment Management Investment Services Other Total Company Managed results Revenue $ 0.3 Tax Expense / (benefit) Net Income Capital Change in Deferred Tax Liability on capital deductions 1.2 Total impact to Capital 0.5 CET1 ratio

16 Fourth Quarter 2017 – Financial Highlights Fourth Quarter Impact of Significant Items - Business Segments 1 Other charges include severance, litigation, an asset impairment and investment securities losses related to the sale of certain securities. Business Segments U.S. tax legislation Other charges1 ($ in millions) Investment Management Investment Services Other Investment Management Investment Services Other Total Fee and other revenue $ — $ — $ (279) $ — $ — $ (37) $ (37) Net interest revenue — — (4) — — — — Total revenue — — (283) — — (37) (37) Total noninterest expense — — — 30 233 19 282 Income before taxes $ — $ — $ (283) $ (30) $ (233) $ (56) $ (319)

17 Fourth Quarter 2017 – Financial Highlights Investment Management . Growth vs. ($ in millions) 4Q17 3Q17 4Q16 Investment management and performance fees1 $ 948 7% 14% Distribution and servicing 51 — 6 Other1 (25) N/M N/M Net interest revenue 74 (10) (8) Total revenue1 1,048 5 9 Provision for credit losses 1 N/M N/M Noninterest expense (ex. amortization of intangible assets) 756 10 13 Amortization of intangible assets 15 — (32) Total noninterest expense 771 10 11 Income before taxes $ 276 (8)% 6% Income before taxes (ex. amortization of intangible assets) – Non-GAAP $ 291 (8)% 3% Pre-tax operating margin 26% (366) bps (78) bps Adjusted pre-tax operating margin – Non-GAAP2, 3 31% (422) bps (240) bps 1 Total revenue includes the impact of the consolidated investment management funds, net of noncontrolling interests. Additionally, other revenue includes asset servicing, treasury services, foreign exchange and other trading revenue and investment and other income. 2 Represents a Non-GAAP measure. See Slide 22 for reconciliation. Additional disclosures regarding these measures and other Non-GAAP measures are available in the Corporation’s reports filed with the SEC, available at www.bnymellon.com/investorrelations. 3 Excludes amortization of intangible assets, provision for credit losses and distribution and servicing expense. N/M - not meaningful; bps – basis points

18 Fourth Quarter 2017 – Financial Highlights Investment Services Growth vs. ($ in millions) 4Q17 3Q17 4Q16 Investment services fees: Asset servicing $ 1,106 2% 6% Clearing services 400 5 13 Issuer services 196 (32) (7) Treasury services 136 (4) (2) Total investment services fees 1,838 (3) 5 Foreign exchange and other trading revenue 168 9 7 Other1 135 (5) 5 Net interest revenue 813 5 14 Total revenue 2,954 — 8 Provision for credit losses (2) N/M N/M Noninterest expense (ex. amortization of intangible assets) 2,060 12 15 Amortization of intangible assets 37 — (3) Total noninterest expense 2,097 12 15 Income before taxes $ 859 (21)% (7)% Income before taxes (ex. amortization of intangible assets) – Non-GAAP $ 896 (21)% (7)% Pre-tax operating margin 29% (779) bps (448) bps Adjusted pre-tax operating margin (ex. provision for credit losses and amortization of intangible assets) – Non-GAAP 30% (779) bps (472) bps 1 Other revenue includes investment management fees, financing-related fees, distribution and servicing revenue and investment and other income. N/M - not meaningful; bps – basis points

19 Fourth Quarter 2017 – Financial Highlights Return on Common Equity and Tangible Common Equity Reconciliation 4Q17 3Q17 4Q16 FY17 FY16($ in millions) Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP $ 1,126 $ 983 $ 822 $ 3,915 $ 3,425 Add: Amortization of intangible assets 52 52 60 209 237 Less: Tax impact of amortization of intangible assets 18 17 19 72 81 Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation excluding amortization of intangible assets – Non-GAAP 1,160 1,018 863 4,052 3,581 Add: M&I, litigation and restructuring charges 80 6 7 106 49 (Recovery) related to Sentinel (13) Less: Tax impact of M&I, litigation and restructuring charges 15 — 3 20 16 Tax impact of (recovery) related to Sentinel (5) Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, as adjusted – Non-GAAP1 $ 1,225 $ 1,024 $ 867 $ 4,138 $ 3,606 Average common shareholders’ equity $ 36,952 $ 36,780 $ 35,171 $ 36,145 $ 35,504 Less: Average goodwill 17,518 17,497 17,344 17,441 17,497 Average intangible assets 3,437 3,487 3,638 3,508 3,737 Add: Deferred tax liability – tax deductible goodwill2 1,034 1,561 1,497 1,034 1,497 Deferred tax liability – intangible assets2 718 1,092 1,105 718 1,105 Average tangible common shareholders’ equity – Non-GAAP $ 17,749 $ 18,449 $ 16,791 $ 16,948 $ 16,872 Return on common equity – GAAP3 12.1% 10.6% 9.3% 10.8% 9.6% Adjusted return on common equity – Non-GAAP1, 3 13.2% 11.0% 9.8% 11.4% 10.2% Return on tangible common equity – Non-GAAP3 25.9% 21.9% 20.4% 23.9% 21.2% Adjusted return on tangible common equity – Non-GAAP1, 3 27.4% 22.0% 20.5% 24.4% 21.4% 1 Non-GAAP information for all periods presented excludes amortization of intangible assets and M&I, litigation and restructuring charges. Non-GAAP information for FY16 also excludes the (recovery) charge related to the Sentinel loan. 2 Deferred tax liabilities are based on fully phased-in Basel III capital rules. Deferred tax liabilities at Dec. 31, 2017 have been remeasured at the lower statutory corporate tax rate. 3 Quarterly returns are annualized.

20 Fourth Quarter 2017 – Financial Highlights Basel III Capital Components & Ratios 1 Preliminary. 2 Reflects transitional adjustments to CET1, Tier 1 capital and Tier 2 capital required under the U.S. capital rules. 3 Estimated. ($ in millions) 12/31/171 09/30/17 12/31/16 Transitional basis2 Fully phased-inNon-GAAP3 Transitional basis 2 Fully phased-in Non-GAAP3 Transitional basis 2 Fully phased-in Non-GAAP3 CET1: Common shareholders’ equity $ 37,859 $ 37,709 $ 37,195 $ 36,981 $ 35,794 $ 35,269 Goodwill and intangible assets (18,684) (19,223) (17,876) (18,351) (17,314) (18,312) Net pension fund assets (169) (211) (72) (90) (55) (90) Equity method investments (372) (387) (334) (348) (313) (344) Deferred tax assets (33) (41) (31) (39) (19) (32) Other (8) (9) (12) (12) — (1) Total CET1 18,593 17,838 18,870 18,141 18,093 16,490 Other Tier 1 capital: Preferred stock 3,542 3,542 3,542 3,542 3,542 3,542 Deferred tax assets (8) — (8) — (13) — Net pension fund assets (42) — (19) — (36) — Other (41) (41) (34) (34) (121) (121) Total Tier 1 capital 22,044 21,339 22,351 21,649 21,465 19,911 Tier 2 capital: Subordinated debt 1,250 1,250 1,300 1,250 550 550 Allowance for credit losses 261 261 265 265 281 281 Trust preferred securities — — — — 148 — Other (12) (12) (7) (7) (12) (11) Total Tier 2 capital - Standardized Approach 1,499 1,499 1,558 1,508 967 820 Excess of expected credit losses 33 33 49 49 50 50 Less: Allowance for credit losses 261 261 265 265 281 281 Total Tier 2 capital - Advanced Approach $ 1,271 $ 1,271 $ 1,342 $ 1,292 $ 736 $ 589 Total capital: Standardized Approach $ 23,543 $ 22,838 $ 23,909 $ 23,157 $ 22,432 $ 20,731 Advanced Approach $ 23,315 $ 22,610 $ 23,693 $ 22,941 $ 22,201 $ 20,500 Risk-weighted assets: Standardized Approach $ 155,498 $ 155,309 $ 153,494 $ 152,995 $ 147,671 $ 146,475 Advanced Approach $ 174,117 $ 173,916 $ 169,822 $ 169,293 $ 170,495 $ 169,227 Standardized Approach: CET1 ratio 12.0% 11.5% 12.3% 11.9% 12.3% 11.3% Tier 1 capital ratio 14.2 13.7 14.6 14.2 14.5 13.6 Total (Tier 1 plus Tier 2) capital ratio 15.1 14.7 15.6 15.1 15.2 14.2 Advanced Approach: CET1 ratio 10.7% 10.3% 11.1% 10.7% 10.6% 9.7% Tier 1 capital ratio 12.7 12.3 13.2 12.8 12.6 11.8 Total (Tier 1 plus Tier 2) capital ratio 13.4 13.0 14.0 13.6 13.0 12.1

21 Fourth Quarter 2017 – Financial Highlights Supplementary Leverage Ratio ($ in millions) 12/30/17 1 09/30/17 12/31/16 Transitional basis Fully phased-in (Non-GAAP)2 Transitional basis Fully phased-in (Non-GAAP)2 Transitional basis Fully phased-in (Non-GAAP)2 Consolidated: Tier 1 capital $ 22,044 $ 21,339 $ 22,351 $ 21,649 $ 21,465 $ 19,911 Total leverage exposure: Quarterly average total assets $ 350,786 $ 350,786 $ 345,709 $ 345,709 $ 344,142 $ 344,142 Less: Amounts deducted from Tier 1 capital 19,186 19,892 18,154 18,856 17,333 18,887 Total on-balance sheet assets, as adjusted 331,600 330,894 327,555 326,853 326,809 325,255 Off-balance sheet exposures: Potential future exposure for derivative contracts (plus certain other items) 6,613 6,613 6,213 6,213 6,021 6,021 Repo-style transaction exposures 1,086 1,086 1,034 1,034 533 533 Credit-equivalent amount of other off-balance sheet exposures (less SLR exclusions) 21,959 21,959 21,860 21,860 23,274 23,274 Total off-balance sheet exposures 29,658 29,658 29,107 29,107 29,828 29,828 Total leverage exposure $ 361,258 $ 360,552 $ 356,662 $ 355,960 $ 356,637 $ 355,083 SLR - Consolidated3 6.1% 5.9% 6.3% 6.1% 6.0% 5.6% The Bank of New York Mellon, our largest bank subsidiary Tier 1 capital $ 20,478 $ 19,768 $ 20,718 $ 19,955 $ 19,011 $ 17,708 Total leverage exposure $ 296,517 $ 296,231 $ 292,759 $ 292,421 $ 291,022 $ 290,230 SLR - The Bank of New York Mellon3 6.9% 6.7% 7.1% 6.8% 6.5% 6.1% 1 Preliminary. 2 Estimated. 3 The estimated fully phased-in SLR (Non-GAAP) is based on our interpretation of the U.S. capital rules. When the SLR is fully phased-in in 2018 as a required minimum ratio, we expect to maintain an SLR of over 5%. The minimum required SLR is 3% and there is a 2% buffer, in addition to the minimum, that is applicable to U.S. G-SIBs. The insured depository institution subsidiaries of the U.S. G-SIBs, including those of BNY Mellon, must maintain a 6% SLR to be considered “well capitalized.”

22 Fourth Quarter 2017 – Financial Highlights Growth vs. ($ in millions) 4Q17 4Q16 4Q16 Investment management and performance fees - GAAP $ 962 $ 848 13% Impact of changes in foreign currency exchange rates — 21 Investment management and performance fees, as adjusted - Non-GAAP $ 962 $ 869 11% Investment Management Business Pre-Tax Operating Margin - Non-GAAP Reconciliation 4Q17 3Q17 4Q16 ($ in millions) Income before income taxes – GAAP $ 276 $ 300 $ 260 Add: Amortization of intangible assets 15 15 22 Provision for credit losses 1 (2) 6 Adjusted income before income taxes, excluding amortization of intangible assets and provision for credit losses – Non-GAAP $ 292 $ 313 $ 288 Total revenue – GAAP $ 1,048 $ 1,000 $ 960 Less: Distribution and servicing expense 107 110 98 Adjusted total revenue, net of distribution and servicing expense – Non-GAAP $ 941 $ 890 $ 862 Pre-tax operating margin – GAAP1 26% 30% 27% Adjusted pre-tax operating margin, excluding amortization of intangible assets, provision for credit losses and distribution and servicing expense – Non-GAAP1 31% 35% 33% 1 Income before taxes divided by total revenue. Growth vs. ($ in millions) 4Q17 4Q16 4Q16 Investment management and performance fees - GAAP $ 962 $ 848 5% Impact of changes in foreign currency exchange rates — 3 Investment management and performance fees, as adjusted - Non-GAAP $ 901 $ 863 4%

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