Maximizing Returns and Creating Value

2014 AnnuAl RepoRt

Financial Highlights the Bank of new York Mellon Corporation (and its subsidiaries) (dollar amounts in millions, except per common share amounts and unless otherwise noted)

2014 2013

FINANCIAL RESULTS

net income applicable to shareholders of the Bank of new York Mellon Corporation (a) $ 2,567 $ 2,104 preferred stock dividends (73) (64)

net income applicable to common shareholders of the Bank of new York Mellon Corporation (a) $ 2,494 $ 2,040

earnings per common share diluted (a)(b) $ 2.15 $ 1.73

KEY DATA

total revenue (a) $ 15,692 $ 15,048 total expenses 12,177 11,306 Fee revenue as a percentage of total revenue excluding net securities gains (a) 80% 79% percentage of non-u.S. total revenue (c) 38% 37% Assets under management at year end (in billions) (d) 1,710 1,583 Assets under custody and/or administration at year end (in trillions) (e) 28.5 27.6

BALANCE SHEET AT DECEMBER 31

total assets (a) $ 385,303 $ 374,516 total deposits 265,869 261,129 total the Bank of new York Mellon Corporation common shareholders equity (a) 35,879 35,935

CAPITAL RATIOS AT DECEMBER 31

Consolidated regulatory capital ratios: (f)(g)

Common equity tier 1 (Cet1) ratio 11.2% 14.5% tier 1 capital ratio 12.2% 16.2% total (tier 1 plus tier 2) capital ratio 12.5% 17.0% leverage capital ratio 5.6% 5.4%

BnY Mellon common shareholders equity to total assets ratio (h) 9.3% 9.6% BnY Mellon tangible common shareholders equity to tangible assets of operations ratio non-GAAp (h) 6.5% 6.8%

Selected regulatory capital ratios fully phased-in Non-GAAP: (h)(i)

estimated Cet1 ratio:(g)

Standardized Approach 10.6% 10.6% Advanced Approach

estimated supplementary leverage ratio (SlR) (j) 9.8% 4.4%

11.3% n/A

(a) Results for year ended and balances at Dec. 31, 2013 were restated to reflect the retrospective application of adopting new accounting guidance in 2014 related to our investments in qualified affordable housing projects (ASu 2014-01).

(b) Diluted earnings per share under the two-class method are 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, if applicable.

(c) Includes fee revenue, net interest revenue and income of consolidated investment management funds, net of net income attributable to noncontrolling interests. (d) excludes securities lending cash management assets and assets managed in the Investment Services business. (e) Includes the assets under custody and/or administration of CIBC Mellon Global Securities Services Company, a joint venture. (f) At Dec. 31, 2014, the Cet1, tier 1 and total risk-based regulatory capital ratios are based on Basel III components of capital, as phased-in, with asset risk-weightings using the Advanced

Approach framework under the final rules released by the Board of Governors of the Federal Reserve System (the Federal Reserve) on July 2, 2013 (the Final Capital Rules). the leverage capital ratio is based on Basel III components of capital and quarterly average total assets, as phased-in. the risk-based and leverage capital ratios for Dec. 31, 2013 are based on Basel I rules (including Basel I tier 1 common in the case of the Cet1 ratio). For additional information on these ratios, see Capital beginning on page 61.

(g) the risk-based capital ratios at Dec. 31, 2014 include the net impact of the total consolidated assets of certain consolidated investment management funds in risk-weighted assets. these assets were not included in the prior period. the leverage capital ratio was not impacted.

(h) See Supplemental Information explanation of GAAp and non-GAAp financial measures beginning on page 128 for a reconciliation of these ratios. (i) the estimated Cet1 ratios on a fully phased-in basis are based on our interpretation of the Final Capital Rules, which are being gradually phased in over a multi-year period.

For additional information on these ratios, see Capital beginning on page 61. (j) the estimated fully phased-in SlR is based on our interpretation of the Final Capital Rules, as supplemented by the Federal Reserves final rules on the SlR. When fully phased-in,

we expect to maintain an SlR of over 5%, 3% attributable to the minimum required SlR, and greater than 2% attributable to a buffer applicable to u.S. G-SIBs.

Dear Fellow Shareholders, Clients and Employees, In 2014 we continued on our path to reposition our company the Investments Company for the World to become an even stronger strategic partner to our clients. It was a year of significant achievement in our Investment Services and Investment Management businesses, yet we still have not realized our full potential. We increased assets under custody and/or administration to $28.5 trillion and assets under management (AuM) to $1.7 trillion, retaining our leadership position in the markets we serve. our market capitalization grew 14 percent to more than $45 billion. And our total shareholder return again beat the median of the S&p Financials Index and of our peer group. these are all good measures of improved performance and value creation.

While these are all positive achievements, growing revenues across many of our businesses continued to be a challenge and our top-line revenues did not meet our plan. the strong u.S. equity market performance was not enough to offset continued low interest rates, low market volatility and weak equity market performance outside the u.S. to offset these weaknesses, we focused intently on what we could control expenses. In that regard, in 2014 many of the initiatives we put in place in prior years really started paying off. on an operating basis, expenses declined by 2 percenti versus 2013 and were significantly below our plan for the year. So, despite soft revenues, our strong expense management resulted in positive operating leverage, a key goal for us.

While that is the story on an operating basis, I must note the significant one-time legal charges and restructuring expenses we took during the year. Factoring in these items, overall noninterest expenses grew by 8 percent year over year. However, these charges enabled us to put a number of significant legal matters behind us, which we expect to lower our expense run rate in 2015 and beyond.

What we also recognize is that clients expect more from us, just as we expect more of ourselves. the pace of global change is accelerating and we need to deliver more, better and even faster than we did before.

We know we cannot solely rely on unpredictable markets to achieve results, so we put in place a three-year plan, which we publicly shared in october, to deliver increased value to our shareholders. our goal is to deliver revenue and earnings-per-share (epS) growth that is not dependent on an improved interest-rate and economic environment. the work weve done to invest in revenue opportunities to increase our profitability, and to streamline the company for improved efficiency, is positioning us to deliver even stronger future results.

During 2014, we also strengthened our executive management team by adding new talent and placing existing leaders into new roles that leverage their capabilities and expertise. these moves will enable us to become a more nimble, thoughtful, productive and cost-effective service provider and investment manager. We hired and promoted some outstanding new leaders with proven track records of driving change and improving performance. our new Chief Human Resources officer, for example, is experienced at developing leadership talent. our new Chief Risk officer is a recognized expert in his field who will help us meet or exceed regulatory requirements with respect to our financial strength, risk management practices and integrity. our new head of Client Service Delivery brings considerable public and private sector expertise in restructuring and modernizing large, complex organizations to create better experiences for clients. And our new General Counsel is helping us make substantial progress in addressing and resolving our most significant legal matters.

We have a new Ceo of Investment Services, who is leading our business improvement efforts and has a strong track record of success in operations and technology development keys to driving profitability in our services business. We also broadened the responsibilities of our Ceo of Investment Management to include oversight of our Markets Group, capitalizing on his extensive experience in the fixed-income and capital markets.

We strengthened our corporate governance by appointing three new directors to our Board in 2014 and one more in early 2015. they possess a wealth of relevant experience and complement our existing directors; 14 of our 15 directors are independent.

Before turning to our strategic priorities, lets recap our 2014 performance.

SUMMARY OF 2014 FINANCIAL RESULTS, YEAR-OVER-YEAR

REVENUE GROWTH: Revenue was up 4 percent, or down 1 percent on an adjusted basis.i

Challenging market conditions impeded some of our growth, and we did not achieve all of the performance goals we had initially set.

In Investment Management, we benefited from an increased appetite for liability-driven investments (lDI) as clients sought to better manage the risk in their pension plans. We also saw greater interest in alternative investments as clients increased allocations to higher-growth hedge fund, real estate and private equity investments. Additionally, we have begun to