THE INVESTMENTS COMPANY FOR THE WORLD

2013 ANNUAL REPORT

FINANCIAL HIgHLIgHTSThe Bank of New York mellon corporation (and its subsidiaries)

(dollar amounts in millions, except per common share amounts and unless otherwise noted)

FiNANciAL REsULTs

Net income applicable to shareholders of The Bank of New York Mellon Corporation Preferred stock dividends

$ 2,111 (64)

2013 $ 2,445

(18)

2012

Net income applicable to common shareholders of The Bank of New York Mellon Corporation 2,047 2,427

Earnings per common share diluted (a) 1.74 2.03

KEY DATA

Total revenue Total expenses Fee revenue as a percentage of total revenue excluding net securities gains Percentage of non-U.S. total revenue (b)

Assets under management at year end (in billions) (c)

Assets under custody and/or administration at year end (in trillions)

$ 14,983

78% 37%

11,306

1,583 27.6

$ 14,555 11,333

78%

37% 1,386 26.3

BALANcE shEET AT DEcEmBER 31

Total assets Total deposits Total The Bank of New York Mellon Corporation common shareholders equity

$ 374,310 261,129 35,959

$ 358,990 246,095

35,363

cAPiTAL RATiOs AT DEcEmBER 31

Estimated Basel III Tier 1 common equity ratio Non-GAAP (d)(e)

Standardized Approach Advanced Approach

BNY Mellon common shareholders equity to total assets ratio (e)

BNY Mellon tangible common shareholders equity to tangible assets of operations ratio Non-GAAP (e)

Determined under Basel I based rules: Leverage capital ratio

10.6% N/A 11.3% (f) 9.8%

9.6% 9.9%

6.8% 6.4%

5.4% 5.3%

(a) Diluted earnings per share under the two-class method is determined on the net income applicable to common shareholders of The Bank of New York Mellon Corporation reported on the income statement less earnings allocated to participating securities, and the change in the excess of redeemable value over the fair value of noncontrolling interests.

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

(c) Excludes securities lending cash management assets and assets managed in the Investment Services business. (d) The estimated Basel III Tier 1 common equity ratio at Dec. 31, 2013, is based on our interpretation of the final capital rules released by

the Board of Governors of the Federal Reserve (the Federal Reserve) on July 2, 2013, on a fully phased-in basis. At Dec. 31, 2012, this ratio was estimated using our interpretation of the Federal Reserves Notices of Proposed Rulemaking dated June 7, 2012, on a fully phased-in basis.

(e) See Supplemental Information Explanation of GAAP and Non-GAAP financial measures beginning on page 118 for a calculation of these ratios. (f) Changes in January 2014 to the probable loss model associated with unsecured wholesale credit exposures within our Advanced Approach

capital model will impact risk-weighted assets. The Company did not include the impact at Dec. 31, 2013. However, a preliminary estimate of the revised methodology to the portfolio at Sept. 30, 2013, would have added approximately 6% to the risk-weighted assets.

Dear Fellow ShareholDerS

In 2013, we continued to reinvent our company to meet the increasingly complex investing needs of our clients. We are proud to be the investments company for the world. BNY Mellon is singularly focused on the investment lifecycle either servicing financial assets through our Investment Services business or managing them through our 16 boutiques that make up Investment Management and providing investment advice through our wealth management offerings. Our clients entrust us with their valuable financial assets, and it is that stewardship responsibility that drives us.

Secular trends are shaping our strategy for providing solutions to help our clients meet their objectives. The investment process is becoming increasingly global. In a low-interest-rate environment, with slow economic growth in almost every part of the world, investors are challenged to find adequate risk-adjusted returns. Pension funds are no longer being created to build protection for retiring employees and populations in developed countries are aging, putting further strain on individuals ability to meet their long-term needs. Consequently, individuals are now charged with saving and investing for themselves.

Investors be they sophisticated global investment managers, hedge funds, endowments and foundations, sovereign wealth funds, governments, financial advisors, families, individuals or the banks and broker-dealers that act as intermediaries to the markets all turn to us for our deep investments expertise and integrated set of services and advice to solve some of the most complex issues in the investment process. Our broad perspective enables us to address some of the worlds more pressing investment challenges, powering global investments to help our clients succeed.

Many people think of or describe BNY Mellon as a custody bank. It is true that we are the worlds largest custodian, with more than $27 trillion in assets under custody and/or administration. We earn recurring fees for providing these services. Custody is also the foundation for a growing series of fee-based services we provide across multiple asset classes. We are in the business of developing sophisticated solutions that allow our clients to better understand their portfolios of assets and how they might perform under various scenarios, and allow them to nimbly develop investment strategies should their outlook change.

What we do differently from other custody banks is that we also provide clearing and settlement services for the vast majority of the worlds institutional broker-dealers. In addition, we provide technology through the Pershing platform that services broker-dealers and financial advisors of all sizes who, in turn, offer capabilities to their end clients. We are among the worlds largest providers of clearing for institutions and services for financial advisors. And, increasingly, these technology platforms are being developed and used globally and far beyond traditional clearing and recordkeeping purposes. I say all this because, in Investment Services, we are a technology and services company embedded in a well-capitalized, extremely liquid, conservatively managed and highly rated bank. And our company is an institution that is integral to the smooth and continuous functioning of the worlds financial markets.

This brings me to Investment Management. It is a terrific business and highly complementary to our other businesses. It, too, is fee-based and relies on intellectual rather than financial capital to grow and thrive. It is driven by people who research, study, analyze and develop investment portfolios and strategies that meet the needs of our discerning clients. We have become the eighth-largest investment manager in the world through our 16 highly successful investment boutiques. Each boutique is run as a separately branded firm with its own investment strategies, products and/or fund structures, and independently managed for the benefit of the investors it serves.

Investment Management takes advantage of being associated with the worlds largest Investment Services firm. The technology platforms and services I discussed earlier are utilized extensively by our various boutiques. Investment Management is actively collaborating with our Pershing team on developing a separately managed account platform in the Asia Pacific region where our investment products will be prominently offered. It is the first multicurrency platform of its kind, where other financial institutions and their advisors will have the ability to select investment products from us and other leading asset managers that fit their clients needs.

Our Wealth Management unit is also collaborating with Pershing, offering banking products and trust services to clients of financial advisors who subscribe to Pershings platform. And there are many more such efforts across our two major businesses that have real upside potential for our clients and shareholders.

Since our role is so critical, we purposely manage our balance sheet conservatively and take relatively modest credit risk. Our clients not only entrust us with their assets, they also tend to leave their excess cash with us, particularly during times of stress, as we are viewed as a safe haven. We invest that cash in relatively short-duration, high-quality assets. We have purposely limited the credit risk in our investment securities and loan portfolios, which makes us a very attractive counterparty. In this prolonged low-rate environment, we have also reduced the duration risk in our securities portfolio, positioning us to benefit when short-term interest rates ultimately rise. We have purposely maintained strict investment criteria in our securities portfolio at the sacrifice of income in the short term, but strongly feel that is the most prudent course for us.

Our business model is one that is fee income-based and does not rely on growing risk-weighted assets. We generate significant capital that can be reinvested in new services and strategies that can either drive future earnings or be returned to our shareholders. We have significant financial flexibility and are very focused on managing capital wisely for the benefit of our shareholders.

reVIew oF oUr PerForMaNCe BNY Mellon had a successful year in 2013, with solid financial results that highlight our focus on driving organic growth, building our capital base, powering innovation and operational excellence and returning excess capi