Bank of New York Mellon Corp (Form: 8-K, Received: 04/19/2018 06:38:34)

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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

Date of Report (Date of earliest event reported) – April 19, 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 Street New York, New York (Address of principal executive offices)		10286 (Zip code)

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

(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 CFR 240.12b-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 standards provided pursuant to Section 13(a) of the Exchange Act. o

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On April 19, 2018 , The Bank of New York Mellon Corporation (“BNY Mellon”) issued an Earnings Release announcing its financial results for the first quarter of 2018 . A copy of each of the Earnings Release and a Financial Supplement is attached hereto as Exhibit 99.1 and exhibit 99.2, respectively, and is incorporated herein by reference. The quotation included in Exhibit 99.1 (the “Excluded Section”) is “furnished” by this Current Report 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 otherwise subject 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 the Exchange Act. The information included in Exhibit 99.1, other than in the Excluded Section, and Exhibit 99.2 is to be considered “filed” under the Exchange Act and is incorporated by reference into all filings 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 April 19, 2018 , in conjunction with a conference call and webcast regarding BNY Mellon’s financial results, the Earnings Release, the Financial Supplement and a First Quarter 2018 Financial Highlights presentation are available on BNY Mellon’s website, www.bnymellon.com. A copy of the First Quarter 2018 Financial Highlights presentation is “furnished” as Exhibit 99.3 to this Current Report 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 Exchange Act, or otherwise subject to the liabilities under that Section. This exhibit shall not be incorporated by reference into any filings BNY Mellon has made or may make 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 not incorporated into this Current Report on Form 8-K.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

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

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: April 19, 2018	By: /s/ Craig T. Beazer
	Name: Craig T. Beazer Title: Secretary

BNY Mellon 1Q18 Earnings Release

BNY MELLON REPORTS FIRST QUARTER 2018 EARNINGS OF

$1.14 BILLION OR $1.10 PER COMMON SHARE



Revenue up 9%	EPS up 33%	ROE 12% ROTCE 26% (a)	CET1 10.7% SLR 5.9%

NEW YORK, April 19, 2018 – The Bank of New York Mellon Corporation (“BNY Mellon”) (NYSE: BK) today reported:



							1Q18 vs.
	1Q18		4Q17		1Q17		4Q17		1Q17
Net income applicable to common shareholders (in millions)	$	1,135	$	1,126	$	880	1	%	29	%
Diluted earnings per common share	$	1.10	$	1.08	$	0.83	2	%	33	%

First Quarter Results

Total revenue of $4.2 billion , increased 9%


•	Fee revenue increased 10%


•	Net interest revenue increased 16%


•	Weaker U.S. dollar increased total revenue ~ 2%

Total noninterest expense of $2.7 billion , increased 4%


•	Weaker U.S. dollar increased expense ~ 3%

Investment Services


•	Total revenue increased 11%


•	Income before taxes increased 22%


•	Record AUC/A of $33.5 trillion , up 9%

Investment Management


•	Total revenue increased 13%


•	Income before taxes increased 38%


•	AUM of $1.9 trillion , up 8%

Returned approximately $890 million to common shareholders


•	Repurchased 11 million common shares for $644 million


•	Paid $246 million in dividends to common shareholders

CEO Commentary

“We delivered strong financial results this quarter, with earnings per common share up 33 percent. Earnings grew by 23 percent, excluding the impact of a lower tax rate and our continued capital return through buybacks, each of which contributed approximately 5 percent. Strong equity markets and higher interest rates were important drivers and, while we should remain beneficiaries of strong and growing markets over the long term, we are focused on continuing to increase our organic revenue growth,” Charles W. Scharf, chairman and chief executive officer, said.

“Importantly, we saw franchise growth in several parts of the company, including foreign exchange trading, tri-party repo activity, collateral management, securities lending and liquidity services. Average deposit levels were up 6 percent, assets under custody and administration grew 9 percent to a record level, our assets under management saw solid inflows in actively managed strategies, securities on loan increased 39 percent and average long-term mutual fund balances at Pershing increased 12 percent,” Mr. Scharf continued.

“While increasing revenue growth and investing significantly in our technology platform remain strategic priorities, we continue to be disciplined across our total expense base and saw minimal growth in total expenses after adjusting for foreign exchange,” Mr. Scharf concluded.



Investor Relations: Valerie Haertel (212) 635-8529	Media Relations: Jennifer Hendricks Sullivan (212) 635-1374
(a) For information on this Non-GAAP measure, see “Supplemental information - Explanation of GAAP and Non-GAAP financial measures” beginning on page 11.
Note: Above comparisons are 1Q18 vs. 1Q17.

BNY Mellon 1Q18 Earnings Release

CONSOLIDATED FIRST QUARTER 2018 FINANCIAL HIGHLIGHTS



(dollars in millions, except per share amounts; common shares in thousands)										1Q18 vs.
	1Q18			4Q17			1Q17			4Q17		1Q17
Fee revenue	$	3,319		$	2,886		$	3,008		15	%	10	%
Net securities (losses) gains	(49		)	(26		)	10			N/M		N/M
Fee and other revenue	3,270			2,860			3,018			14		8
(Loss) income from consolidated investment management funds	(11		)	17			33			N/M		N/M
Net interest revenue	919			851			792			8		16
Total revenue	4,178			3,728			3,843			12		9
Provision for credit losses	(5		)	(6		)	(5		)	N/M		N/M
Noninterest expense	2,739			3,006			2,642			(9	)	4
Income before income taxes	1,444			728			1,206			N/M		20
Provision (benefit) for income taxes	282			(453		)	269			N/M		5
Net income	$	1,162		$	1,181		$	937		(2	)%	24	%
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	1,135		$	1,126		$	880		1	%	29	%
Operating leverage (a)										N/M		505	bps
Diluted earnings per common share	$	1.10		$	1.08		$	0.83		2	%	33	%
Average common shares and equivalents outstanding - diluted	1,021,731			1,030,404			1,047,746
Pre-tax operating margin	35		%	20		%	31		%

Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense.

N/M – Not meaningful.

bps – basis points.

KEY DRIVERS (comparisons are 1Q18 vs. 1Q17, unless otherwise stated)

Total revenue increased primarily reflecting:

Fee revenue increased 10% primarily reflecting higher equity market values, the favorable impact of a weaker U.S. dollar, higher performance fees and foreign exchange revenue, and growth in collateral management.

Net interest revenue increased 16% driven by higher interest rates and higher deposits.

Noninterest expense increased 4% reflecting the unfavorable impact of a weaker U.S. dollar, higher staff expense and volume-related sub-custodian and clearing expenses, partially offset by lower consulting expense.

Effective tax rate of 19.5% reflecting a lower federal statutory tax rate.

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

Record assets under custody and/or administration of $33.5 trillion , up 9% , reflecting higher market values, the favorable impact of a weaker U.S. dollar and net new business.

Assets under management of $1.9 trillion increased 8% reflecting the favorable impact of a weaker U.S. dollar (principally versus the British Pound), higher market values and net inflows, partially offset by the divestiture of CenterSquare Investment Management (“CenterSquare”) and other changes.

Capital and liquidity

Repurchased 11 million common shares for $644 million and paid $246 million in dividends to common shareholders.

Return on common equity of 12% ; Return on tangible common equity of 26% (b) .

Common equity Tier 1 (“CET1”) ratio – 10.7% .

Supplementary leverage ratio (“SLR”) – 5.9% .

Average liquidity coverage ratio (“LCR”) – 116% .

See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for the reconciliation.

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

BNY Mellon 1Q18 Earnings Release

INVESTMENT SERVICES BUSINESS HIGHLIGHTS



(dollars in millions, unless otherwise noted; not meaningful - N/M)										1Q18 vs.
	1Q18			4Q17			1Q17			4Q17		1Q17
Total revenue by line of business: (a)
Asset Servicing	$	1,519		$	1,459		$	1,346		4	%	13	%
Pershing	581			569			522			2		11
Issuer Services	418			352			396			19		6
Treasury Services	321			322			302			—		6
Clearance and Collateral Management	255			252			225			1		13
Total revenue by line of business	3,094			2,954			2,791			5		11
Provision for credit losses	(7		)	(2		)	—			N/M		N/M
Noninterest expense	1,949			2,097			1,849			(7	)	5
Income before taxes	$	1,152		$	859		$	942		34	%	22	%

Pre-tax operating margin	37		%	29		%	34		%

Foreign exchange revenue	$	169		$	168		$	153		1	%	10	%
Securities lending revenue	$	48		$	45		$	40		7	%	20	%

Metrics:
Average loans	$	39,200		$	38,845		$	42,818		1	%	(8	)%
Average deposits	$	214,130		$	204,680		$	197,690		5	%	8	%

AUC/A at period end (in trillions) (current period is preliminary) (b)	$	33.5		$	33.3		$	30.6		1	%	9	%
Market value of securities on loan at period end (in billions) (c)	$	436		$	408		$	314		7	%	39	%

Pershing
Average active clearing accounts (U.S. platform) (in thousands)	6,075			6,126			6,058			(1	)%	—	%
Average long-term mutual fund assets (U.S. platform)	$	514,542		$	508,873		$	460,977		1	%	12	%
Average investor margin loans (U.S. platform)	$	10,930		$	9,822		$	10,740		11	%	2	%

Clearance and Collateral Management
Average tri-party repo balances (in billions)	$	2,698		$	2,606		$	2,373		4	%	14	%

See “Change in Presentation” on page 13 for additional information on the Investment Services business.

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 March 31, 2018 and Dec. 31, 2017 and $1.2 trillion at March 31, 2017 .

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 $73 billion at March 31, 2018 , $71 billion at Dec. 31, 2017 and $65 billion at March 31, 2017 .

Total revenue increased both year-over-year and sequentially. Net interest revenue increased in most businesses primarily driven by higher interest rates. The other drivers of net interest revenue and fee revenue by line of business are indicated below.

Asset Servicing - Both increases primarily reflect higher net interest revenue due in part to an increase in deposit balances, higher fees driven by an increase in volumes, market values and foreign exchange volumes, as well as the favorable impact of a weaker U.S. dollar.

Pershing - Both increases primarily reflect higher net interest revenue and higher fees due to growth in long-term mutual fund balances and clearance volumes.

Issuer Services - The year-over-year increase primarily reflects higher net interest revenue in Corporate Trust as well as the favorable impact of a weaker U.S. dollar. The sequential increase primarily reflects seasonally higher Depositary Receipts revenue.

Treasury Services - The year-over-year increase primarily reflects higher net interest revenue and payment volumes.

Clearance and Collateral Management - The year-over-year increase primarily reflects growth in collateral management, higher clearance volumes and net interest revenue.

Both noninterest expense comparisons reflect higher technology costs, the unfavorable impact of the weaker U.S. dollar and higher volume-related sub-custodian and clearing expense. The year-over-year increase was partially offset by lower consulting expenses. The sequential decrease is primarily due to lower severance, litigation and an asset impairment recorded in 4Q17.

BNY Mellon 1Q18 Earnings Release

INVESTMENT MANAGEMENT BUSINESS HIGHLIGHTS



(dollars in millions, unless otherwise noted; not meaningful - N/M)										1Q18 vs.
	1Q18			4Q17			1Q17			4Q17		1Q17
Total revenue by line of business: (a)
Asset Management	$	770		$	738		$	661		4	%	16	%
Wealth Management	318			310			302			3		5
Total revenue by line of business	1,088			1,048			963			4		13
Provision for credit losses	2			1			3			N/M		N/M
Noninterest expense	705			771			683			(9	)	3
Income before taxes	$	381		$	276		$	277		38	%	38	%

Pre-tax operating margin	35		%	26		%	29		%
Adjusted pre-tax operating margin – Non-GAAP (b)	39		%	29		%	32		%

Metrics:
Average loans	$	16,876		$	16,813		$	16,153		—	%	4	%
Average deposits	$	13,363		$	11,633		$	15,781		15	%	(15	)%

Wealth Management client assets (in billions) (current period is preliminary) (c)	$	246		$	251		$	236		(2	)%	4	%

Changes in AUM (in billions) (current period is preliminary) : (d)
Beginning balance of AUM	$	1,893		$	1,824		$	1,648
Net inflows (outflows):
Long-term strategies:
Equity	—			(6		)	(4		)
Fixed income	7			(2		)	2
Liability-driven investments, including currency overlay	13			23			14
Multi-asset and alternative investments	(3		)	2			2
Total long-term active strategies inflows	17			17			14
Index	(13		)	(1		)	—
Total long-term strategies inflows	4			16			14
Short term strategies:
Cash	(14		)	(4		)	13
Total net (outflows) inflows	(10		)	12			27
Net market impact	(14		)	47			41
Net currency impact	29			10			11
Divestiture/Other (e)	(30		)	—			—
Ending balance of AUM	$	1,868		$	1,893		$	1,727		(1	)%	8	%

See “Change in Presentation” on page 13 for additional information on the Investment Management business.

Net of distribution and servicing expense. See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for the reconciliation of this Non-GAAP measure. In 1Q18, the adjusted pre-tax margin – Non-GAAP for prior periods was restated to include amortization of intangible assets and the provision for credit losses.

Includes AUM and AUC/A in the Wealth Management business.

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

Primarily reflects a change in methodology beginning in 1Q18 to exclude AUM related to equity method investments as well as the CenterSquare divestiture.

Total revenue increased both year-over-year and sequentially.

Asset Management - Both increases primarily reflect higher equity market values, the favorable impact of a weaker U.S. dollar (principally versus the British Pound) and the impact of the sale of CenterSquare. The year-over-year increase also reflects higher performance fees due primarily to strong liability driven investment and alternative investment performance.

Wealth Management - Both increases primarily reflect higher equity market values. The year-over-year increase also reflects net new business, partially offset by lower net interest revenue due to lower deposit balances.

Total noninterest expense increased year-over-year, primarily reflecting the unfavorable impact of a weaker U.S. dollar. The sequential decrease primarily reflects lower severance and incentive expense.

BNY Mellon 1Q18 Earnings Release

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




(in millions)	1Q18			4Q17			1Q17
Fee revenue	$	57		$	(221	)	$	62
Net securities (losses) gains	(49		)	(26		)	10
Total fee and other revenue (loss)	8			(247		)	72
Net interest (expense)	(1		)	(36		)	(1		)
Total revenue (loss)	7			(283		)	71
Provision for credit losses	—			(5		)	(8		)
Noninterest expense	87			135			107
(Loss) before taxes	$	(80	)	$	(413	)	$	(28	)

Fee revenue increased sequentially primarily reflecting the impact of U.S. tax legislation on our investments in renewable energy, which resulted in a reduction of $279 million recorded in 4Q17.

Net securities losses recorded in 1Q18 primarily relate to the sale of approximately $1 billion of debt securities.

Net interest expense decreased sequentially primarily reflecting the impact of interest rate hedging activities.

Noninterest expense decreased year-over-year and sequentially, primarily reflecting lower professional, legal and other purchased services expense, partially offset by higher incentive expense. The sequential decrease also reflects lower severance, software and occupancy expenses.

BNY Mellon 1Q18 Earnings Release

CAPITAL AND LIQUIDITY

Our consolidated capital and liquidity ratios are shown in the following table.



Capital and liquidity ratios	March 31, 2018			Dec. 31, 2017
Consolidated regulatory capital ratios: (a)(b)
CET1 ratio	10.7		%	10.3		%
Tier 1 capital ratio	12.7			12.3
Total capital ratio	13.5			13.0
Tier 1 leverage ratio	6.5			6.4
SLR	5.9			5.9
BNY Mellon shareholders’ equity to total assets ratio	11.2			11.1
BNY Mellon common shareholders’ equity to total assets ratio	10.2			10.1

Average liquidity coverage ratio (“LCR”)	116		%	118		%

Book value per common share (c)	$	37.78		$	37.21
Tangible book value per common share – Non-GAAP (c)	$	18.78		$	18.24
Cash dividends per common share	$	0.24		$	0.24
Common dividend payout ratio	22		%	22		%
Closing stock price per common share	$	51.53		$	53.86
Market capitalization (in millions)	$	52,080		$	54,584
Common shares outstanding (in thousands)	1,010,676			1,013,442

Regulatory capital ratios for March 31, 2018 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, which for the periods noted above was the Advanced Approaches.

Regulatory capital ratios for Dec. 31, 2017 are presented on a fully phased-in basis. On a transitional basis at Dec. 31, 2017, the CET1 ratio was 10.7%, the Tier 1 capital ratio was 12.7%, the Total capital ratio was 13.4%, the Tier 1 leverage ratio was 6.6% and the SLR was 6.1%.

Tangible book value per common share – Non-GAAP excludes goodwill and intangible assets, net of deferred tax liabilities. See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for the reconciliation of this Non-GAAP measure.

Common equity Tier 1 capital totaled $18.3 billion at March 31, 2018, an increase of $496 million compared with the fully phased-in basis at Dec. 31, 2017. The increase primarily reflects capital generated through earnings and additional paid-in capital resulting from stock awards, partially offset by capital deployed through common stock repurchased and dividends paid.

BNY Mellon 1Q18 Earnings Release

NET INTEREST REVENUE



Net interest revenue										1Q18 vs.
(dollars in millions ; not meaningful - N/M )	1Q18			4Q17			1Q17			4Q17		1Q17
Net interest revenue	$	919		$	851		$	792		8	%	16	%
Add: Tax equivalent adjustment	6			11			12			N/M		N/M
Net interest revenue, on a fully taxable equivalent (“FTE”) basis – Non-GAAP (a)	$	925		$	862		$	804		7	%	15	%

Net interest margin	1.22		%	1.14		%	1.13		%	8	bps	9	bps
Net interest margin (FTE) – Non-GAAP (a)	1.23		%	1.16		%	1.14		%	7	bps	9	bps

Selected average balances:
Cash/interbank investments	$	120,821		$	117,446		$	106,069		3	%	14	%
Trading account securities	4,183			2,723			2,254			54		86
Securities	118,459			120,225			114,786			(1	)	3
Loans	58,606			56,772			60,312			3		(3	)
Interest-earning assets	302,069			297,166			283,421			2		7
Interest-bearing deposits	155,704			147,763			139,820			5		11
Federal funds purchased and securities sold under repurchase agreements	18,963			20,211			18,995			(6	)	—
Long-term debt	28,407			28,245			25,882			1		10
Other interest-bearing liabilities	23,920			26,086			22,855			(8	)	5
Interest-bearing liabilities	226,994			222,305			207,552			2		9
Noninterest-bearing deposits	71,005			69,111			73,555			3		(3	)

Selected average yields/rates: (b)
Cash/interbank investments	1.13		%	0.98		%	0.56		%
Trading account securities	2.62			2.02			3.12
Securities	2.03			1.85			1.71
Loans	2.90			2.60			2.15
Interest-earning assets	1.85			1.65			1.38

Interest-bearing deposits	0.30			0.17			0.03
Federal funds purchased and securities sold under repurchase agreements	2.29			1.83			0.51
Long-term debt	2.49			2.29			1.85
Other interest-bearing liabilities	1.04			0.71			0.28
Interest-bearing liabilities	0.82			0.65			0.33

Average cash/interbank investments as a percentage of average interest-earning assets	40		%	40		%	37		%
Average noninterest-bearing deposits as a percentage of average interest-earning assets	24		%	23		%	26		%

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.

Yields/rates include the impact of interest rate hedging activities.

bps – basis points.

Net interest revenue increased year-over-year and sequentially, primarily reflecting higher interest rates and deposits. The year-over-year increase was partially offset by higher average long-term debt. The sequential increase was also favorably impacted by interest rate hedging activities.

BNY Mellon 1Q18 Earnings Release



Noninterest expense							1Q18 vs.
(dollars in millions)	1Q18		4Q17		1Q17		4Q17		1Q17
Staff (a)	$	1,576	$	1,628	$	1,488	(3	)%	6	%
Professional, legal and other purchased services	291		339		313		(14	)	(7	)
Software and equipment	234		297		223		(21	)	5
Net occupancy	139		153		136		(9	)	2
Sub-custodian and clearing (b)	119		102		103		17		16
Distribution and servicing	106		106		100		—		6
Bank assessment charges	52		53		57		(2	)	(9	)
Business development	51		66		51		(23	)	—
Amortization of intangible assets	49		52		52		(6	)	(6	)
Other (a)(b)(c)	122		210		119		(42	)	3
Total noninterest expense	$	2,739	$	3,006	$	2,642	(9	)%	4	%

In 1Q18, we adopted new accounting guidance included in ASU 2017-07, Compensation-Retirement Benefits - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which required the reclassification of the components of pension and other post-retirement costs, other than the service cost component. As a result, staff expense increased and other expense decreased. Prior periods have been reclassified.

Beginning in 1Q18, clearing expense, which was previously included in other expense, was included with sub-custodian expense. Prior periods have been reclassified.

Beginning in 1Q18, merger and integration (“M&I”), litigation and restructuring charges are no longer separately disclosed. Expenses previously reported in this line have been reclassified to existing expense categories, primarily other expense.

The year-over-year increase primarily reflects the unfavorable impact of a weaker U.S. dollar, higher staff expense driven by the annual merit increase that was effective in July 2017 and higher performance-based incentives. The year-over-year increase also reflects higher volume-related sub-custodian and clearing expenses, which were partially offset by lower consulting expense.

The sequential decrease reflects lower expenses in nearly all categories. The decrease primarily reflects severance, litigation and an asset impairment recorded in the fourth quarter of 2017, partially offset by higher incentives due to the impact of vesting of long-term stock awards for retirement eligible employees and the unfavorable impact of a weaker U.S. dollar.

BNY Mellon 1Q18 Earnings Release

THE BANK OF NEW YORK MELLON CORPORATION

Condensed Consolidated Income Statement



(in millions)	Quarter ended
	March 31, 2018			Dec. 31, 2017			March 31, 2017

Fee and other revenue
Investment services fees:
Asset servicing	$	1,168		$	1,130		$	1,063
Clearing services	414			400			376
Issuer services	260			197			251
Treasury services	138			137			139
Total investment services fees	1,980			1,864			1,829
Investment management and performance fees	960			962			842
Foreign exchange and other trading revenue	209			166			164
Financing-related fees	52			54			55
Distribution and servicing	36			38			41
Investment and other income (loss)	82			(198		)	77
Total fee revenue	3,319			2,886			3,008
Net securities (losses) gains	(49		)	(26		)	10
Total fee and other revenue	3,270			2,860			3,018
Operations of consolidated investment management funds
Investment (loss) income	(11		)	17			37
Interest of investment management fund note holders	—			—			4
(Loss) income from consolidated investment management funds	(11		)	17			33
Net interest revenue
Interest revenue	1,381			1,219			960
Interest expense	462			368			168
Net interest revenue	919			851			792
Total revenue	4,178			3,728			3,843
Provision for credit losses	(5		)	(6		)	(5		)
Noninterest expense
Staff (a)	1,576			1,628			1,488
Professional, legal and other purchased services	291			339			313
Software and equipment	234			297			223
Net occupancy	139			153			136
Sub-custodian and clearing (b)	119			102			103
Distribution and servicing	106			106			100
Bank assessment charges	52			53			57
Business development	51			66			51
Amortization of intangible assets	49			52			52
Other (a)(b)(c)	122			210			119
Total noninterest expense	2,739			3,006			2,642
Income
Income before income taxes	1,444			728			1,206
Provision (benefit) for income taxes	282			(453		)	269
Net income	1,162			1,181			937
Net loss (income) attributable to noncontrolling interests (includes $11, $(9) and $(18) related to consolidated investment management funds, respectively)	9			(6		)	(15		)
Net income applicable to shareholders of The Bank of New York Mellon Corporation	1,171			1,175			922
Preferred stock dividends	(36		)	(49		)	(42		)
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	1,135		$	1,126		$	880

Beginning in 1Q18, clearing expense, which was previously included in other expense, was included with sub-custodian expense. Prior periods have been reclassified.

Beginning in 1Q18, M&I, litigation and restructuring charges are no longer separately disclosed. Expenses previously reported in this line have been reclassified to existing expense categories, primarily other expense.

BNY Mellon 1Q18 Earnings Release

THE BANK OF NEW YORK MELLON CORPORATION

Condensed Consolidated Income Statement - continued



Net income applicable to common shareholders of The Bank of New York Mellon Corporation used for the earnings per share calculation	Quarter ended
	March 31, 2018		Dec. 31, 2017		March 31, 2017
(in millions)	March 31, 2018		Dec. 31, 2017		March 31, 2017
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	1,135	$	1,126	$	880
Less: Earnings allocated to participating securities	8		8		14
Net income applicable to the common shareholders of The Bank of New York Mellon Corporation after required adjustments for the calculation of basic and diluted earnings per common share	$	1,127	$	1,118	$	866



Average common shares and equivalents outstanding of The Bank of New York Mellon Corporation	Quarter ended
	March 31, 2018	Dec. 31, 2017	March 31, 2017
(in thousands)	March 31, 2018	Dec. 31, 2017	March 31, 2017
Basic	1,016,797	1,024,828	1,041,158
Diluted	1,021,731	1,030,404	1,047,746



Earnings per share applicable to the common shareholders of The Bank of New York Mellon Corporation	Quarter ended
	March 31, 2018		Dec. 31, 2017		March 31, 2017
(in dollars)	March 31, 2018		Dec. 31, 2017		March 31, 2017
Basic	$	1.11	$	1.09	$	0.83
Diluted	$	1.10	$	1.08	$	0.83

BNY Mellon 1Q18 Earnings Release

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

BNY Mellon has included in this Earnings Release certain Non-GAAP financial measures on a tangible basis, as a supplement to GAAP information. Tangible common shareholders’ equity excludes goodwill and intangible assets, net of deferred tax liabilities. 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 assets that 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 to shares of common stock outstanding.

BNY Mellon has presented the operating margin for the Investment Management business net of distribution and servicing expense that is passed to third parties who distribute or service our managed funds. BNY Mellon believes that this measure is useful when evaluating the business’s performance relative to industry competitors.

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



Return on common equity and tangible common equity reconciliation
(dollars in millions)	1Q18			4Q17			1Q17
Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP	$	1,135		$	1,126		$	880
Add: Amortization of intangible assets	49			52			52
Less: Tax impact of amortization of intangible assets	12			18			18
Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets – Non-GAAP	$	1,172		$	1,160		$	914

Average common shareholders’ equity	$	37,593		$	36,952		$	34,965
Less: Average goodwill	17,581			17,518			17,338
Average intangible assets	3,397			3,437			3,578
Add: Deferred tax liability – tax deductible goodwill (a)	1,042			1,034			1,518
Deferred tax liability – intangible assets (a)	716			718			1,100
Average tangible common shareholders’ equity – Non-GAAP	$	18,373		$	17,749		$	16,667

Return on common equity (annualized) – GAAP	12.2		%	12.1		%	10.2		%
Return on tangible common equity (annualized) – Non-GAAP	25.9		%	25.9		%	22.2		%

Deferred tax liabilities, for the prior periods, are based on fully phased-in U.S. capital rules.

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



Book value and tangible book value per common share reconciliation	March 31, 2018		Dec. 31, 2017		March 31, 2017
(dollars in millions except common shares)	March 31, 2018		Dec. 31, 2017		March 31, 2017
BNY Mellon shareholders’ equity at period end – GAAP	$	41,728	$	41,251	$	39,138
Less: Preferred stock	3,542		3,542		3,542
BNY Mellon common shareholders’ equity at period end – GAAP	38,186		37,709		35,596
Less: Goodwill	17,596		17,564		17,355
Intangible assets	3,370		3,411		3,549
Add: Deferred tax liability – tax deductible goodwill (a)	1,042		1,034		1,518
Deferred tax liability – intangible assets (a)	716		718		1,100
BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP	$	18,978	$	18,486	$	17,310

Period-end common shares outstanding (in thousands)	1,010,676		1,013,442		1,039,877

Book value per common share – GAAP	$	37.78	$	37.21	$	34.23
Tangible book value per common share – Non-GAAP	$	18.78	$	18.24	$	16.65

Deferred tax liabilities, for the prior periods, are based on fully phased-in U.S. capital rules.

BNY Mellon 1Q18 Earnings Release

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



Pre-tax operating margin reconciliation - Investment Management business
(dollars in millions)	1Q18			4Q17			1Q17
Income before income taxes – GAAP	$	381		$	276		$	277

Total revenue – GAAP	$	1,088		$	1,048		$	963
Less: Distribution and servicing expense	110			107			101
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP	$	978		$	941		$	862

Pre-tax operating margin – GAAP (a)	35		%	26		%	29		%
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a)	39		%	29		%	32		%

(a) Income before taxes divided by total revenue.

The following table presents the impact of U.S. tax legislation and other charges recorded in 4Q17.



Amounts included in 4Q17 results
(dollars in millions except earnings per share)	U.S. tax legislation			Other charges			(a)
Fee and other revenue	$	(279	)	$	(37	)
Income from consolidated investment management funds	—			—
Net interest revenue	(4		)	—
Total revenue	(283		)	(37		)
Provision for credit losses	—			—
Total noninterest expense	—			282
Income before taxes	(283		)	(319		)
(Benefit) provision for income taxes	(710		)	(73		)
Net income	$	427		$	(246	)

Diluted earnings per common share	$	0.41		$	(0.24	)

Other charges include severance, litigation, an asset impairment and investment securities losses related to the sale of certain securities.

BNY Mellon 1Q18 Earnings Release

CHANGE IN PRESENTATION

In 1Q18, we began presenting total revenue for each of the primary lines of business in our two principal businesses. The table below summarizes the products and services in each line of business and the primary types of revenue generated. BNY Mellon believes that the updated presentation provides investors a clearer picture of our business results and permits investors to view revenue on a basis consistent with management.



Investment Services business

Lines of business	Primary products and services	Primary types of revenue
Asset Servicing	Custody, accounting, ETF services, middle-office solutions, transfer agency, services for private equity and real estate funds, foreign exchange, securities lending, liquidity/lending services, prime brokerage and data analytics	- Asset servicing fees (includes securities lending revenue) - Foreign exchange revenue - Net interest revenue - Financing-related fees

Pershing	Clearing and custody, investment, wealth and retirement solutions, technology and enterprise data management, trading services and prime brokerage	- Clearing services fees - Net interest revenue

Issuer Services	Corporate Trust (trustee, administration and agency services and reporting and transparency) and Depositary Receipts (issuer services and support for brokers and investors)	- Issuer services fees - Net interest revenue - Foreign exchange revenue

Treasury Services	Integrated cash management solutions including payments, foreign exchange, liquidity management, receivables processing and payables management and trade finance and processing	- Treasury services fees - Net interest revenue

Clearance and Collateral Management	U.S. government clearing, global collateral management and tri-party repo	- Asset servicing fees - Net interest revenue

Investment Management business

Lines of business	Primary products and services	Primary types of revenue
Asset Management	Diversified investment management strategies and distribution of investment products	- Investment management fees - Performance fees - Distribution and servicing fees

Wealth Management	Investment management, custody, wealth and estate planning and private banking services	- Investment management fees - Net interest revenue

The following updates to our presentations also began in 1Q18. Prior periods have been restated to be on a comparable basis.

Clearing expense, previously included in other expense, has been reclassified to sub-custodian expense and renamed sub-custodian and clearing expense.

M&I, litigation and restructuring charges are no longer separately disclosed on the income statement. Expenses previously reported in this line have been reclassified to existing expense categories, primarily other expense.

The adjusted pre-tax operating margin (Non-GAAP) for the Investment Management business no longer excludes amortization of intangible assets and provision for credit losses.

BNY Mellon 1Q18 Earnings Release

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 capital plans, strategic priorities, financial goals, client experience, driving revenue growth, preliminary business metrics and statements regarding our aspirations, as well as our overall plans, strategies, goals, objectives, expectations, outlooks, estimates, intentions, targets, opportunities, focus and initiatives. These statements may be expressed in a variety of ways, including the use of future or present tense language. Words such as “estimate,” “forecast,” “project,” “anticipate,” “likely,” “target,” “expect,” “intend,” “continue,” “seek,” “believe,” “plan,” “goal,” “could,” “should,” “would,” “may,” “might,” “will,” “strategy,” “synergies,” “opportunities,” “trends,” “future” 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 New York 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 factors and other uncertainties set forth in BNY Mellon’s Annual Report on Form 10-K for the year ended Dec. 31, 2017 and BNY Mellon’s other filings with the Securities and Exchange Commission. All forward-looking statements in this Earnings Release speak only as of April 19, 2018 , and BNY Mellon 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.

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. As of March 31, 2018 , BNY Mellon had $33.5 trillion 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 on Twitter @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 a conference call and simultaneous live audio webcast at 8:00 a.m. EDT on April 19, 2018 . This conference call and audio webcast will include forward-looking statements and may include other material information.

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 on to www.bnymellon.com/investorrelations. Earnings materials will be available at www.bnymellon.com/investorrelations beginning at approximately 6:30 a.m. EDT on April 19, 2018 . Replays of the conference call and audio webcast will be available beginning April 19, 2018 at approximately 2 p.m. EDT through May 19, 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.

The Bank of New York Mellon Corporation

Financial Supplement

First Quarter 2018



Table of Contents




Consolidated Results		Page
Consolidated Financial Highlights		3
Condensed Consolidated Income Statement		4
Condensed Consolidated Balance Sheet		5
Fee and Other Revenue		6
Average Balances and Interest Rates		7
Noninterest Expense		8
Capital and Liquidity		9

Key Market Metrics		10

Business Segment Results
Investment Services Business		11
Investment Management Business		13
AUM by Product, AUM Flows and Wealth Management Client Assets		14
Other Segment		15
Select Full-Year Information		16

Other
Investment Securities Portfolio		17
Allowance for Credit Losses and Nonperforming Assets		18

Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures		19



THE BANK OF NEW YORK MELLON CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
																1Q18 vs.
(dollars in millions, except per common share amounts, or unless otherwise noted)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
Selected income statement data
Fee revenue	$	3,319		$	2,886		$	3,148		$	3,120		$	3,008		15	%	10	%
Net securities (losses) gains	(49		)	(26		)	19			—			10			N/M		N/M
Fee and other revenue	3,270			2,860			3,167			3,120			3,018			14		8
(Loss) income from consolidated investment management funds	(11		)	17			10			10			33			N/M		N/M
Net interest revenue	919			851			839			826			792			8		16
Total revenue	4,178			3,728			4,016			3,956			3,843			12		9
Provision for credit losses	(5		)	(6		)	(6		)	(7		)	(5		)	N/M		N/M
Noninterest expense	2,739			3,006			2,654			2,655			2,642			(9	)	4
Income before income taxes	1,444			728			1,368			1,308			1,206			N/M		20
Provision (benefit) for income taxes	282			(453		)	348			332			269			N/M		5
Net income	$	1,162		$	1,181		$	1,020		$	976		$	937		(2	)%	24	%
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	1,135		$	1,126		$	983		$	926		$	880		1	%	29	%

Diluted earnings per common share	$	1.10		$	1.08		$	0.94		$	0.88		$	0.83		2	%	33	%
Average common shares and equivalents outstanding - diluted (in thousands)	1,021,731			1,030,404			1,041,138			1,041,879			1,047,746			(1	)%	(2	)%

Financial ratios
Pre-tax operating margin	35		%	20		%	34		%	33		%	31		%
Return on common equity (annualized) (a)	12.2		%	12.1		%	10.6		%	10.4		%	10.2		%
Return on tangible common equity (annualized) – Non-GAAP (a)	25.9		%	25.9		%	21.9		%	21.9		%	22.2		%
Percent of non-U.S. total revenue	37		%	39		%	36		%	35		%	34		%

Period end
Assets under custody and/or administration (“AUC/A”) (in trillions) (b)	$	33.5		$	33.3		$	32.2		$	31.1		$	30.6		1	%	9	%
Assets under management (“AUM”) (in trillions)	$	1.87		$	1.89		$	1.82		$	1.77		$	1.73		(1	)%	8	%

Book value per common share (a)	$	37.78		$	37.21		$	36.11		$	35.26		$	34.23
Tangible book value per common share – Non-GAAP (a)	$	18.78		$	18.24		$	18.19		$	17.53		$	16.65
Cash dividends per common share	$	0.24		$	0.24		$	0.24		$	0.19		$	0.19
Common dividend payout ratio	22		%	22		%	26		%	22		%	23		%
Closing stock price per common share	$	51.53		$	53.86		$	53.02		$	51.02		$	47.23
Market capitalization	$	52,080		$	54,584		$	54,294		$	52,712		$	49,113
Common shares outstanding (in thousands)	1,010,676			1,013,442			1,024,022			1,033,156			1,039,877

Capital ratios at period end (c)
Common equity Tier 1 (“CET1”) ratio	10.7		%	10.3		%	10.7		%	10.4		%	10.0		%
Tier 1 capital ratio	12.7		%	12.3		%	12.8		%	12.5		%	12.1		%
Total capital ratio	13.5		%	13.0		%	13.6		%	12.8		%	12.4		%
Supplementary leverage ratio (“SLR”)	5.9		%	5.9		%	6.1		%	6.0		%	5.9		%
(a) Non-GAAP information, for all periods presented, excludes goodwill and intangible assets, net of deferred tax liabilities. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 19 for the reconciliation of Non-GAAP measures.
(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 March 31, 2018, Dec. 31, 2017 and Sept. 30, 2017 and $1.2 trillion at June 30, 2017 and March 31, 2017.
(c) Regulatory capital ratios for March 31, 2018 are preliminary. The capital ratios for periods prior to March 31, 2018 are presented on a fully phased-in basis. All risk-based capital ratios are presented using Advanced Approaches risk-weightings. See "Capital and Liquidity" for the transitional capital ratios.
N/M - Not meaningful.



THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENT
																1Q18 vs.
(dollars in millions, except per share amounts; common shares in thousands)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
Revenue
Investment services fees:
Asset servicing	$	1,168		$	1,130		$	1,105		$	1,085		$	1,063		3	%	10	%
Clearing services	414			400			383			394			376			4		10
Issuer services	260			197			288			241			251			32		4
Treasury services	138			137			141			140			139			1		(1	)
Total investment services fees	1,980			1,864			1,917			1,860			1,829			6		8
Investment management and performance fees	960			962			901			879			842			—		14
Foreign exchange and other trading revenue	209			166			173			165			164			26		27
Financing-related fees	52			54			54			53			55			(4	)	(5	)
Distribution and servicing	36			38			40			41			41			(5	)	(12	)
Investment and other income (loss)	82			(198		)	63			122			77			N/M		N/M
Total fee revenue	3,319			2,886			3,148			3,120			3,008			15		10
Net securities (losses) gains	(49		)	(26		)	19			—			10			N/M		N/M
Total fee and other revenue	3,270			2,860			3,167			3,120			3,018			14		8
(Loss) income from consolidated investment management funds	(11		)	17			10			10			33			N/M		N/M
Net interest revenue	919			851			839			826			792			8		16
Total revenue	4,178			3,728			4,016			3,956			3,843			12		9
Provision for credit losses	(5		)	(6		)	(6		)	(7		)	(5		)	N/M		N/M
Noninterest expense
Staff (a)	1,576			1,628			1,485			1,432			1,488			(3	)	6
Professional, legal and other purchased services	291			339			305			319			313			(14	)	(7	)
Software and equipment	234			297			233			232			223			(21	)	5
Net occupancy	139			153			141			140			136			(9	)	2
Sub-custodian and clearing (b)	119			102			101			108			103			17		16
Distribution and servicing	106			106			109			104			100			—		6
Bank assessment charges	52			53			51			59			57			(2	)	(9	)
Business development	51			66			49			63			51			(23	)	—
Amortization of intangible assets	49			52			52			53			52			(6	)	(6	)
Other (a)(b)(c)	122			210			128			145			119			(42	)	3
Total noninterest expense	2,739			3,006			2,654			2,655			2,642			(9	)	4
Income before income taxes	1,444			728			1,368			1,308			1,206			N/M		20
Provision (benefit) for income taxes	282			(453		)	348			332			269			N/M		5
Net income	1,162			1,181			1,020			976			937			(2	)	24
Net loss (income) attributable to noncontrolling interests	9			(6		)	(2		)	(1		)	(15		)	N/M		N/M
Preferred stock dividends	(36		)	(49		)	(35		)	(49		)	(42		)	N/M		N/M
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	1,135		$	1,126		$	983		$	926		$	880		1	%	29	%
Average common shares and equivalents outstanding:
Basic	1,016,797			1,024,828			1,035,337			1,035,829			1,041,158			(1	)%	(2	)%
Diluted	1,021,731			1,030,404			1,041,138			1,041,879			1,047,746			(1	)%	(2	)%
Earnings per common share:
Basic	$	1.11		$	1.09		$	0.94		$	0.88		$	0.83		2	%	34	%
Diluted	$	1.10		$	1.08		$	0.94		$	0.88		$	0.83		2	%	33	%
(a) In 1Q18, we adopted new accounting guidance included in ASU 2017-07, Compensation-Retirement Benefits - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which required the reclassification of the components of pension and other post-retirement costs, other than the service cost component. As a result, staff expense increased and other expense decreased. Prior periods have been reclassified.
(b) Beginning in 1Q18, clearing expense, which was previously included in other expense, was included with sub-custodian expense. Prior periods have been reclassified.
(c) Beginning in 1Q18, merger and integration ("M&I"), litigation and restructuring charges are no longer separately disclosed. Expenses previously reported in this line have been reclassified to existing expense categories, primarily other expense.
N/M - Not meaningful.



THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
	2018			2017
(in millions)	March 31			Dec. 31			Sept. 30			June 30			March 31
Assets
Cash and due from:
Banks	$	4,636		$	5,382		$	5,557		$	4,725		$	5,366
Interest-bearing deposits with the Federal Reserve and other central banks	91,431			91,510			75,808			74,130			65,086
Interest-bearing deposits with banks	15,186			11,979			15,256			13,601			14,554
Federal funds sold and securities purchased under resale agreements	28,784			28,135			27,883			27,440			25,776
Securities	118,789			120,370			120,049			119,260			115,834
Trading assets	8,596			6,022			4,666			5,279			4,912
Loans	60,809			61,540			59,068			61,673			60,868
Allowance for loan losses	(156		)	(159		)	(161		)	(165		)	(164		)
Net loans	60,653			61,381			58,907			61,508			60,704
Premises and equipment	1,702			1,634			1,631			1,640			1,307
Accrued interest receivable	610			610			547			567			551
Goodwill	17,596			17,564			17,543			17,457			17,355
Intangible assets	3,370			3,411			3,461			3,506			3,549
Other assets	21,638			23,029			22,287			25,000			21,515
Subtotal assets of operations	372,991			371,027			353,595			354,113			336,509
Assets of consolidated investment management funds, at fair value	606			731			802			702			1,027
Total assets	$	373,597		$	371,758		$	354,397		$	354,815		$	337,536
Liabilities
Deposits	$	241,844		$	244,322		$	230,996		$	235,677		$	221,291
Federal funds purchased and securities sold under repurchase agreements	21,600			15,163			10,314			10,934			11,149
Trading liabilities	3,365			3,984			3,253			4,100			2,816
Payables to customers and broker-dealers	20,172			20,184			21,176			21,622			21,306
Commercial paper	3,936			3,075			2,501			876			2,543
Other borrowed funds	1,550			3,028			3,353			1,338			1,022
Accrued taxes and other expenses	5,349			6,225			6,070			5,670			5,290
Other liabilities	5,707			6,050			7,195			6,379			5,733
Long-term debt	27,939			27,979			28,408			27,699			26,346
Subtotal liabilities of operations	331,462			330,010			313,266			314,295			297,496
Liabilities of consolidated investment management funds, at fair value	11			2			27			22			209
Total liabilities	331,473			330,012			313,293			314,317			297,705
Temporary equity
Redeemable noncontrolling interests	184			179			197			181			159
Permanent equity
Preferred stock	3,542			3,542			3,542			3,542			3,542
Common stock	14			14			14			13			13
Additional paid-in capital	26,911			26,665			26,588			26,432			26,248
Retained earnings	26,496			25,635			24,757			24,027			23,300
Accumulated other comprehensive loss, net of tax	(2,343		)	(2,357		)	(2,781		)	(3,093		)	(3,524		)
Less: Treasury stock, at cost	(12,892		)	(12,248		)	(11,597		)	(10,947		)	(10,441		)
Total The Bank of New York Mellon Corporation shareholders’ equity	41,728			41,251			40,523			39,974			39,138
Nonredeemable noncontrolling interests of consolidated investment management funds	212			316			384			343			534
Total permanent equity	41,940			41,567			40,907			40,317			39,672
Total liabilities, temporary equity and permanent equity	$	373,597		$	371,758		$	354,397		$	354,815		$	337,536



THE BANK OF NEW YORK MELLON CORPORATION
FEE AND OTHER REVENUE

															1Q18 vs.
(dollars in millions)	1Q18			4Q17			3Q17		2Q17			1Q17			4Q17		1Q17
Investment services fees:
Asset servicing	$	1,113		$	1,079		$	1,058	$	1,037		$	1,014		3	%	10	%
Securities lending	55			51			47		48			49			8		12
Clearing services	414			400			383		394			376			4		10
Issuer services	260			197			288		241			251			32		4
Treasury services	138			137			141		140			139			1		(1	)
Total investment services fees	1,980			1,864			1,917		1,860			1,829			6		8
Investment management and performance fees (a)(b)	960			962			901		879			842			—		14
Foreign exchange and other trading revenue:
Foreign exchange	183			175			158		151			154			5		19
Other trading revenue (loss)	26			(9		)	15		14			10			N/M		N/M
Total foreign exchange and other trading revenue	209			166			173		165			164			26		27
Financing-related fees	52			54			54		53			55			(4	)	(5	)
Distribution and servicing	36			38			40		41			41			(5	)	(12	)
Investment and other income (loss) :
Asset-related gains (losses)	46			—			1		(5		)	3			N/M		N/M
Corporate/bank-owned life insurance	36			43			37		43			30			N/M		N/M
Expense reimbursements from joint venture	16			15			18		17			14			N/M		N/M
Seed capital gains (a)	—			7			6		10			9			N/M		N/M
Lease-related gains	—			4			—		51			1			N/M		N/M
Equity investment income	—			4			—		7			26			N/M		N/M
Other (loss) income	(16		)	(271		)	1		(1		)	(6		)	N/M		N/M
Total investment and other income (loss) (a)	82			(198		)	63		122			77			N/M		N/M
Total fee revenue	3,319			2,886			3,148		3,120			3,008			15		10
Net securities (losses) gains	(49		)	(26		)	19		—			10			N/M		N/M
Total fee and other revenue	$	3,270		$	2,860		$	3,167	$	3,120		$	3,018		14	%	8	%
(a) Excludes investment management fees and seed capital gains related to consolidated investment management funds, both of which are reflected in operations of consolidated investment management funds, net of noncontrolling interests. Investment management fees related to consolidated investment management fees were $- million in 1Q18, $- million in 4Q17, $1 million in 3Q17, $2 million in 2Q17 and $2 million in 1Q17. Seed capital gains related to consolidated investment management funds were $- million in 1Q18, $8 million in 4Q17, $6 million in 3Q17, $5 million in 2Q17 and $13 million in 1Q17.
(b) On a constant currency basis (Non-GAAP), investment management and performance fees increased 9% compared with 1Q17. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 19 for the reconciliation of this Non-GAAP measure.
N/M - Not meaningful.



THE BANK OF NEW YORK MELLON CORPORATION
AVERAGE BALANCES AND INTEREST RATES

	1Q18				4Q17				3Q17				2Q17				1Q17
	Average balance		Average rate		Average balance		Average rate		Average balance		Average rate		Average balance		Average rate		Average balance		Average rate
(dollars in millions, presented on an FTE basis)	Average balance		Average rate		Average balance		Average rate		Average balance		Average rate		Average balance		Average rate		Average balance		Average rate
Assets
Interest-earning assets:
Interest-bearing deposits with banks (primarily foreign banks)	$	13,850	1.25	%	$	14,068	1.03	%	$	15,899	0.86	%	$	14,832	0.73	%	$	14,714	0.60	%
Interest-bearing deposits held at the Federal Reserve and other central banks	79,068		0.64		74,961		0.54		70,430		0.50		69,316		0.41		66,043		0.35
Federal funds sold and securities purchased under resale agreements	27,903		2.47		28,417		2.11		28,120		1.67		26,873		1.29		25,312		1.07
Margin loans	15,674		2.98		14,018		2.67		13,206		2.60		15,058		2.32		15,753		1.94
Non-margin loans:
Domestic offices	30,415		3.02		30,462		2.73		29,950		2.87		30,734		2.70		30,963		2.44
Foreign offices	12,517		2.51		12,292		2.21		12,788		2.09		13,001		1.99		13,596		1.71
Total non-margin loans	42,932		2.87		42,754		2.58		42,738		2.64		43,735		2.49		44,559		2.22
Securities:
U.S. Government obligations	23,460		1.88		25,195		1.71		25,349		1.67		25,928		1.64		26,239		1.60
U.S. Government agency obligations	62,975		2.23		62,889		2.07		61,710		2.00		59,533		1.95		56,857		1.90
States and political subdivisions - tax-exempt	2,875		2.62		3,010		3.10		3,226		3.06		3,298		3.09		3,373		3.11
Other securities	29,149		1.69		29,131		1.34		28,804		1.34		28,468		1.15		28,317		1.25
Trading securities	4,183		2.62		2,723		2.02		2,359		2.26		2,455		2.85		2,254		3.12
Total securities	122,642		2.05		122,948		1.85		121,448		1.81		119,682		1.74		117,040		1.74
Total interest-earning assets	$	302,069	1.85	%	$	297,166	1.65	%	$	291,841	1.59	%	$	289,496	1.47	%	$	283,421	1.38	%
Noninterest-earning assets	56,106				53,620				53,868				53,019				52,779
Total assets	$	358,175			$	350,786			$	345,709			$	342,515			$	336,200

Liabilities and total equity
Interest-bearing liabilities:
Interest-bearing deposits:
Money market rate accounts	$	8,359	0.14	%	$	7,642	0.08	%	$	7,509	0.06	%	$	7,379	0.04	%	$	7,510	0.05	%
Savings	773		1.95		787		1.09		837		0.76		1,014		0.75		1,094		0.61
Demand deposits	8,379		0.52		6,592		0.38		5,932		0.27		5,659		0.14		5,371		0.12
Time deposits	34,101		0.63		30,259		0.41		29,934		0.32		34,757		0.18		35,429		0.12
Foreign offices	104,092		0.18		102,483		0.09		98,278		0.10		93,527		0.05		90,416		(0.03	)
Total interest-bearing deposits	155,704		0.30		147,763		0.17		142,490		0.16		142,336		0.09		139,820		0.03
Federal funds purchased and securities sold under repurchase agreements	18,963		2.29		20,211		1.83		21,403		1.30		17,970		0.84		18,995		0.51
Trading liabilities	1,569		2.26		1,406		0.38		1,434		0.54		1,216		0.61		908		0.89
Other borrowed funds	2,119		1.67		3,421		1.46		2,197		1.38		1,193		1.24		822		0.98
Commercial paper	3,131		1.59		3,391		1.23		2,736		1.15		2,215		0.95		2,164		0.88
Payables to customers and broker-dealers	17,101		0.75		17,868		0.49		18,516		0.42		20,609		0.30		18,961		0.16
Long-term debt	28,407		2.49		28,245		2.29		28,138		2.07		27,398		1.87		25,882		1.85
Total interest-bearing liabilities	$	226,994	0.82	%	$	222,305	0.65	%	$	216,914	0.57	%	$	212,937	0.42	%	$	207,552	0.33	%
Total noninterest-bearing deposits	71,005				69,111				70,168				73,886				73,555
Other noninterest-bearing liabilities	18,571				18,422				17,763				15,656				15,844
Total The Bank of New York Mellon Corporation shareholders’ equity	41,135				40,494				40,322				39,404				38,507
Noncontrolling interests	470				454				542				632				742
Total liabilities and shareholders’ equity	$	358,175			$	350,786			$	345,709			$	342,515			$	336,200
Net interest margin			1.22	%			1.14	%			1.15	%			1.14	%			1.13	%
Net interest margin (FTE) – Non-GAAP (a)			1.23	%			1.16	%			1.16	%			1.16	%			1.14	%
(a) See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 19 for the reconciliation of this Non-GAAP measure.
Note: Interest and average rates were calculated on an FTE basis, at tax rates of approximately 21% for 1Q18 and approximately 35% for quarters of 2017, using dollar amounts in thousands and the actual number of days in the year.



THE BANK OF NEW YORK MELLON CORPORATION
NONINTEREST EXPENSE

											1Q18 vs.
(dollars in millions)	1Q18		4Q17		3Q17		2Q17		1Q17		4Q17		1Q17
Staff (a)	$	1,576	$	1,628	$	1,485	$	1,432	$	1,488	(3	)%	6	%
Professional, legal and other purchased services	291		339		305		319		313		(14	)	(7	)
Software and equipment	234		297		233		232		223		(21	)	5
Net occupancy	139		153		141		140		136		(9	)	2
Sub-custodian and clearing (b)	119		102		101		108		103		17		16
Distribution and servicing	106		106		109		104		100		—		6
Bank assessment charges	52		53		51		59		57		(2	)	(9	)
Business development	51		66		49		63		51		(23	)	—
Amortization of intangible assets	49		52		52		53		52		(6	)	(6	)
Other (a)(b)(c)	122		210		128		145		119		(42	)	3
Total noninterest expense	$	2,739	$	3,006	$	2,654	$	2,655	$	2,642	(9	)%	4	%

Full-time employees at period end	52,100		52,500		52,900		52,800		52,600		(1	)%	(1	)%
(a) In 1Q18, we adopted new accounting guidance included in ASU 2017-07, Compensation-Retirement Benefits - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which required the reclassification of the components of pension and other post-retirement costs, other than the service cost component. As a result, staff expense increased and other expense decreased. Prior periods have been reclassified.
(b) Beginning in 1Q18, clearing expense, which was previously included in other expense, was included with sub-custodian expense. Prior periods have been reclassified.
(c) Beginning in 1Q18, M&I, litigation and restructuring charges are no longer separately disclosed. Expenses previously reported in this line have been reclassified to existing expense categories, primarily other expense.



THE BANK OF NEW YORK MELLON CORPORATION
CAPITAL AND LIQUIDITY

	2018			2017
(dollars in millions)	March 31			Dec. 31			Sept. 30			June 30			March 31
Consolidated regulatory capital ratios - fully phased-in basis: (a)
Standardized Approach:
CET1 capital	$	18,334		$	17,838		$	18,141		$	17,629		$	16,835
Tier 1 capital	21,835			21,339			21,649			21,147			20,363
Total capital	23,340			22,838			23,157			21,960			21,187
Risk-weighted assets	156,136			155,324			152,995			152,645			146,122

CET1 ratio	11.7		%	11.5		%	11.9		%	11.5		%	11.5		%
Tier 1 capital ratio	14.0			13.7			14.2			13.9			13.9
Total capital ratio	14.9			14.7			15.1			14.4			14.5

Advanced Approaches:
CET1 capital	$	18,334		$	17,838		$	18,141		$	17,629		$	16,835
Tier 1 capital	21,835			21,339			21,649			21,147			20,363
Total capital	23,110			22,608			22,941			21,749			20,962
Risk-weighted assets	171,594			173,711			169,293			169,478			168,534

CET1 ratio	10.7		%	10.3		%	10.7		%	10.4		%	10.0		%
Tier 1 capital ratio	12.7			12.3			12.8			12.5			12.1
Total capital ratio	13.5			13.0			13.6			12.8			12.4

Tier 1 leverage ratio	6.5		%	6.4		%	6.6		%	6.5		%	6.4		%

SLR:
Leverage exposure	$	367,767		$	360,543		$	355,960		$	352,448		$	346,772
SLR	5.9		%	5.9		%	6.1		%	6.0		%	5.9		%

Average liquidity coverage ratio (“LCR”)	116		%	118		%	119		%	116		%	117		%

Consolidated regulatory capital ratios - transitional basis:
Advanced Approaches:
CET1 ratio	N/A			10.7		%	11.1		%	10.8		%	10.4		%
Tier 1 capital ratio	N/A			12.7			13.2			12.9			12.5
Total capital ratio	N/A			13.4			14.0			13.2			12.8

Tier 1 leverage ratio	N/A			6.6		%	6.8		%	6.7		%	6.6		%
SLR	N/A			6.1			6.3			6.2			6.1
(a) Regulatory capital ratios for March 31, 2018 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, which for the periods noted above was the Advanced Approaches.
N/A - Not applicable. Beginning Jan. 1, 2018, regulatory capital ratios are fully phased-in.



THE BANK OF NEW YORK MELLON CORPORATION
KEY MARKET METRICS

																1Q18 vs.
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
Key market metrics:
S&P 500 Index (a)	2641			2674			2519			2423			2363			(1	)%	12	%
S&P 500 Index - daily average	2733			2603			2467			2398			2326			5		17
FTSE 100 Index (a)	7057			7688			7373			7313			7323			(8	)	(4	)
FTSE 100 Index - daily average	7354			7477			7380			7391			7274			(2	)	1
MSCI EAFE (a)	2006			2051			1974			1883			1793			(2	)	12
MSCI EAFE - daily average	2073			2005			1934			1856			1749			3		19
Barclays Capital Global Aggregate Bond ^SM Index (a)(b)	491			485			480			471			459			1		7
NYSE and NASDAQ share volume (in billions)	210			188			179			199			186			12		13
Average interest on excess reserves paid by the Federal Reserve	1.53		%	1.30		%	1.25		%	1.04		%	0.79		%	23	bps	74	bps

Foreign exchange rates vs. U.S. dollar:
British pound (a)	$	1.41		$	1.35		$	1.34		$	1.30		$	1.25		4	%	13	%
British pound - average rate	1.39			1.33			1.31			1.28			1.24			5		12
Euro (a)	1.23			1.20			1.18			1.14			1.07			3		15
Euro - average rate	1.23			1.18			1.17			1.10			1.07			4		15
(a) Period end.
(b) Unhedged in U.S. dollar terms.
bps - basis points.



THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SERVICES BUSINESS

																1Q18 vs.
(dollars in millions)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
Revenue:
Investment services fees:
Asset servicing (ex. securities lending revenue)	$	1,095		$	1,061		$	1,040		$	1,019		$	998		3	%	10	%
Securities lending revenue	48			45			41			42			40			7		20
Clearing services	414			400			381			393			375			4		10
Issuer services	260			196			288			241			250			33		4
Treasury services	138			136			141			139			139			1		(1	)
Total investment services fees	1,955			1,838			1,891			1,834			1,802			6		8
Foreign exchange and other trading revenue	169			168			154			145			153			1		10
Other (a)	126			135			142			136			129			(7	)	(2	)
Total fee and other revenue	2,250			2,141			2,187			2,115			2,084			5		8
Net interest revenue	844			813			777			761			707			4		19
Total revenue	3,094			2,954			2,964			2,876			2,791			5		11
Provision for credit losses	(7		)	(2		)	(2		)	(3		)	—			N/M		N/M
Noninterest expense (ex. amortization of intangible assets)	1,913			2,060			1,837			1,889			1,812			(7	)	6
Amortization of intangible assets	36			37			37			38			37			(3	)	(3	)
Total noninterest expense	1,949			2,097			1,874			1,927			1,849			(7	)	5
Income before taxes	$	1,152		$	859		$	1,092		$	952		$	942		34	%	22	%

Pre-tax operating margin	37		%	29		%	37		%	33		%	34		%

Total revenue by line of business: (b)
Asset Servicing	$	1,519		$	1,459		$	1,420		$	1,378		$	1,346		4	%	13	%
Pershing	581			569			542			547			522			2		11
Issuer Services	418			352			442			398			396			19		6
Treasury Services	321			322			316			311			302			—		6
Clearance and Collateral Management	255			252			244			242			225			1		13
Total revenue by line of business	$	3,094		$	2,954		$	2,964		$	2,876		$	2,791		5	%	11	%
(a) Other revenue includes investment management fees, financing-related fees, distribution and servicing revenue and investment and other income.
(b) See "Change in Presentation" in the First Quarter 2018 Earnings Release for additional information on the Investment Services business.
N/M - Not meaningful.



THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SERVICES BUSINESS

											1Q18 vs.
(dollars in millions unless otherwise noted)	1Q18		4Q17		3Q17		2Q17		1Q17		4Q17		1Q17
Average loans	$	39,200	$	38,845	$	38,038	$	40,931	$	42,818	1	%	(8	)%
Average assets	$	278,095	$	260,494	$	252,461	$	254,724	$	251,027	7	%	11	%
Average deposits	$	214,130	$	204,680	$	198,299	$	200,417	$	197,690	5	%	8	%

AUC/A at period end (in trillions) (a)(b)	$	33.5	$	33.3	$	32.2	$	31.1	$	30.6	1	%	9	%
Market value of securities on loan at period end (in billions) (c)	$	436	$	408	$	382	$	336	$	314	7	%	39	%

Pershing
Average active clearing accounts (U.S. platform) ( in thousands)	6,075		6,126		6,203		6,159		6,058		(1	)%	—
Average long-term mutual fund assets (U.S. platform)	$	514,542	$	508,873	$	500,998	$	480,532	$	460,977	1	%	12	%
Average investor margin loans (U.S. platform)	$	10,930	$	9,822	$	8,886	$	9,812	$	10,740	11	%	2	%

Clearance and Collateral Management
Average tri-party repo balances ( in billions)	$	2,698	$	2,606	$	2,534	$	2,498	$	2,373	4	%	14	%
(a) March 31, 2018 information is preliminary.
(b) Includes the AUC/A of CIBC Mellon of $1.3 trillion at March 31, 2018, Dec. 31, 2017 and Sept. 30, 2017 and $1.2 trillion at June 30, 2017 and March 31, 2017.
(c) 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 $73 billion at March 31, 2018, $71 billion at Dec. 31, 2017, $68 billion at Sept. 30, 2017, $66 billion at June 30, 2017 and $65 billion at March 31, 2017.



THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT MANAGEMENT BUSINESS

																1Q18 vs.
(dollars in millions)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
Revenue:
Investment management fees (a)	$	898		$	898		$	871		$	845		$	814		—	%	10	%
Performance fees	48			50			15			17			12			(4	)	300
Investment management and performance fees (b)	946			948			886			862			826			—		15
Distribution and servicing	50			51			51			53			52			(2	)	(4	)
Other (a)	16			(25		)	(19		)	(16		)	(1		)	N/M		N/M
Total fee and other revenue (a)	1,012			974			918			899			877			4		15
Net interest revenue	76			74			82			87			86			3		(12	)
Total revenue	1,088			1,048			1,000			986			963			4		13
Provision for credit losses	2			1			(2		)	—			3			N/M		N/M
Noninterest expense (ex. amortization of intangible assets)	692			756			687			683			668			(8	)	4
Amortization of intangible assets	13			15			15			15			15			(13	)	(13	)
Total noninterest expense	705			771			702			698			683			(9	)	3
Income before taxes	$	381		$	276		$	300		$	288		$	277		38	%	38	%
Income before taxes (ex. amortization of intangible assets) – Non-GAAP	$	394		$	291		$	315		$	303		$	292		35	%	35	%

Pre-tax operating margin	35		%	26		%	30		%	29		%	29		%
Adjusted pre-tax operating margin – Non-GAAP (c)	39		%	29		%	34		%	33		%	32		%

Total revenue by line of business: (d)
Asset Management	$	770		$	738		$	693		$	683		$	661		4	%	16	%
Wealth Management	318			310			307			303			302			3		5
Total revenue by line of business	$	1,088		$	1,048		$	1,000		$	986		$	963		4	%	13	%

Average loans	$	16,876		$	16,813		$	16,724		$	16,560		$	16,153		—	%	4	%
Average assets	$	31,963		$	31,681		$	31,689		$	31,355		$	31,067		1	%	3	%
Average deposits	$	13,363		$	11,633		$	12,374		$	14,866		$	15,781		15	%	(15	)%
(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) On a constant currency basis, investment management and performance fees increased 10% (Non-GAAP) compared with 1Q17. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 19 for the reconciliation of this Non-GAAP measure.
(c) Net of distribution and servicing expense. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 19 for the reconciliation of this Non-GAAP measure. In 1Q18, the adjusted pre-tax margin – Non-GAAP for prior periods was restated to include amortization of intangible assets and the provision for credit losses.
(d) See "Change in Presentation" in the First Quarter 2018 Earnings Release for additional information on the Investment Management business.
N/M - Not meaningful.



THE BANK OF NEW YORK MELLON CORPORATION
AUM BY PRODUCT, AUM FLOWS AND WEALTH MANAGEMENT CLIENT ASSETS

																1Q18 vs.
(dollars in billions)	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
AUM by product type (a)(b)
Equity	$	161		$	161		$	158		$	163		$	158		—	%	2	%
Fixed income	206			206			206			198			191			—		8
Index	333			350			333			324			330			(5	)	1
Liability-driven investments, including currency overlay	700			667			622			607			584			5		20
Multi-asset and alternative investments	185			214			207			192			188			(14	)	(2	)
Cash	283			295			298			287			276			(4	)	3
Total AUM by product type	$	1,868		$	1,893		$	1,824		$	1,771		$	1,727		(1	)%	8	%

Changes in AUM (a)(b)
Beginning balance of AUM	$	1,893		$	1,824		$	1,771		$	1,727		$	1,648
Net inflows (outflows):
Long-term strategies:
Equity	—			(6		)	(2		)	(2		)	(4		)
Fixed income	7			(2		)	4			2			2
Liability-driven investments, including currency overlay	13			23			(2		)	15			14
Multi-asset and alternative investments	(3		)	2			3			1			2
Total long-term active strategies inflows	17			17			3			16			14
Index	(13		)	(1		)	(3		)	(13		)	—
Total long-term strategies inflows	4			16			—			3			14
Short-term strategies:
Cash	(14		)	(4		)	10			11			13
Total net (outflows) inflows	(10		)	12			10			14			27
Net market impact	(14		)	47			17			1			41
Net currency impact	29			10			26			29			11
Divestiture/Other (d)	(30		)	—			—			—			—
Ending balance of AUM	$	1,868		$	1,893		$	1,824		$	1,771		$	1,727		(1	)%	8	%

Wealth Management client assets (a)(c)	$	246		$	251		$	245		$	239		$	236		(2	)%	4	%
(a) March 31, 2018 information is preliminary.
(b) Excludes securities lending cash management assets and assets managed in the Investment Services business.
(c) Includes AUM and AUC/A in the Wealth Management business.
(d) Primarily reflects a change in methodology beginning in 1Q18 to exclude AUM related to equity method investments as well as the CenterSquare divestiture.



THE BANK OF NEW YORK MELLON CORPORATION
OTHER SEGMENT

(in millions)	1Q18			4Q17			3Q17			2Q17			1Q17
Fee revenue	$	57		$	(221	)	$	50		$	113		$	62
Net securities (losses) gains	(49		)	(26		)	19			—			10
Fee and other revenue (loss)	8			(247		)	69			113			72
Net interest (expense)	(1		)	(36		)	(20		)	(22		)	(1		)
Total revenue (loss)	7			(283		)	49			91			71
Provision for credit losses	—			(5		)	(2		)	(4		)	(8		)
Noninterest expense	87			135			77			28			107
(Loss) income before taxes	$	(80	)	$	(413	)	$	(26	)	$	67		$	(28	)

Average loans and leases	$	2,530		$	1,114		$	1,182		$	1,302		$	1,341
Average assets	$	48,117		$	58,611		$	61,559		$	56,436		$	54,106



THE BANK OF NEW YORK MELLON CORPORATION
SELECT FULL-YEAR INFORMATION

										2017 vs.		2016 vs.
(dollars in millions unless otherwise noted)	2017			2016			2015			2016		2015
Investment Services business
Total revenue by line of business: (a)
Asset Servicing	$	5,603		$	5,504		$	5,486		2	%	—	%
Pershing	2,180			1,979			1,928			10		3
Issuer Services	1,588			1,585			1,514			—		5
Treasury Services	1,251			1,136			1,082			10		5
Clearance and Collateral Management	963			892			789			8		13
Total revenue by line of business	11,585			11,096			10,799			4		3
Provision for credit losses	(7		)	8			28			N/M		N/M
Noninterest expense (ex. amortization of intangible assets)	7,598			7,187			7,340			6		(2	)
Amortization of intangible assets	149			155			162			(4	)	(4	)
Total noninterest expense	7,747			7,342			7,502			6		(2	)
Income before taxes	$	3,845		$	3,746		$	3,269		3	%	15	%
Income before taxes (ex. amortization of intangible assets) – Non-GAAP	$	3,994		$	3,901		$	3,431		2	%	14	%

Pre-tax operating margin	33		%	34		%	30		%


Investment Management business
Total revenue by line of business: (a)
Asset Management	$	2,775		$	2,615		$	2,781		6	%	(6	)%
Wealth Management	1,222			1,136			1,125			8		1
Total revenue by line of business	3,997			3,751			3,906			7		(4	)
Provision for credit losses	2			6			(1		)	N/M		N/M
Noninterest expense (ex. amortization of intangible assets)	2,794			2,696			2,762			4		(2	)
Amortization of intangible assets	60			82			97			(27	)	(15	)
Total noninterest expense	2,854			2,778			2,859			3		(3	)
Income before taxes	$	1,141		$	967		$	1,048		18	%	(8	)%
Income before taxes (ex. amortization of intangible assets) – Non-GAAP	$	1,201		$	1,049		$	1,145		14	%	(8	)%

Pre-tax operating margin	29		%	26		%	27		%
Adjusted pre-tax operating margin – Non-GAAP (b)	32		%	29		%	30		%

Wealth Management client assets (in billions) (c)	$	251		$	228		$	216		10	%	6	%
(a) See "Change in Presentation" in the First Quarter 2018 Earnings Release for additional information on our businesses.
(b) Net of distribution and servicing expense. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 19 for the reconciliation of this Non-GAAP measure. Prior periods have been restated to include amortization of intangible assets and the provision for credit losses.
(c) Includes AUM and AUC/A in the Wealth Management business.
N/M - Not meaningful.



THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SECURITIES PORTFOLIO

(dollars in millions)	Dec. 31, 2017			1Q18 change in unrealized gain (loss)			March 31, 2018					Fair value as a % of amortized cost (a)		Unrealized gain (loss)				Ratings (b)
	Dec. 31, 2017						Amortized cost		Fair value									AAA/ AA-		A+/ A-		BBB+/ BBB-		BB+ and lower		Not rated
	Fair value						Amortized cost		Fair value									AAA/ AA-		A+/ A-		BBB+/ BBB-		BB+ and lower		Not rated
Agency RMBS	$	49,746		$	(556	)	$	50,113	$	49,093		98	%	$	(1,020	)		100	%	—	%	—	%	—	%	—	%
U.S. Treasury	24,848			(58		)	23,706		23,545			99		(161		)		100		—		—		—		—
Sovereign debt/sovereign guaranteed	14,128			(11		)	14,613		14,732			101		119				74		6		19		1		—
Non-agency RMBS (c)	1,640			(13		)	1,229		1,534			90		305				3		1		10		69		17
European floating rate notes	271			1			271		268			97		(3		)		50		50		—		—		—
Commercial MBS	11,394			(13		)	12,324		12,280			100		(44		)		100		—		—		—		—
State and political subdivisions	2,973			(21		)	2,756		2,742			100		(14		)		76		17		4		—		3
Foreign covered bonds	2,615			(13		)	2,808		2,806			100		(2		)		100		—		—		—		—
Corporate bonds	1,255			(20		)	1,236		1,222			99		(14		)		17		68		15		—		—
CLOs	2,909			(3		)	3,121		3,129			100		8				98		—		—		1		1
U.S. Government agencies	2,603			(46		)	2,682		2,669			100		(13		)		100		—		—		—		—
Consumer ABS	1,043			(2		)	277		278			100		1				93		—		7		—		—
Other (d)	4,483			(13		)	3,920		3,905			100		(15		)		80		18		—		—		2
Total investment securities	$	119,908	(e)	$	(768	)	$	119,056	$	118,203	(e)	99	%	$	(853	)	(e)(f)	93	%	3	%	3	%	1	%	—	%
(a) Amortized cost before impairments.
(b) Represents ratings by S&P, or the equivalent.
(c) Includes RMBS that were included in the former Grantor Trust of $1,091 million at Dec. 31, 2017 and $1,019 million at March 31, 2018.
(d) Includes commercial paper with a fair value of $700 million at both Dec. 31, 2017 and March 31, 2018, respectively. Also includes $963 million of money market funds at Dec. 31, 2017. In 1Q18, we adopted the new accounting guidance included in ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. As a result, the money market fund investments were reclassified to trading assets, primarily from available-for-sale securities.
(e) Includes net unrealized losses on derivatives hedging securities available-for-sale of $147 million at Dec. 31, 2017 and a net unrealized gain of $238 million at March 31, 2018.
(f) Unrealized loss of $29 million at March 31, 2018 related to available-for-sale securities, net of hedges.



THE BANK OF NEW YORK MELLON CORPORATION
ALLOWANCE FOR CREDIT LOSSES AND NONPERFORMING ASSETS

	2018			2017
(dollars in millions)	March 31			Dec. 31			Sept. 30			June 30			March 31
Allowance for credit losses - beginning of period:
Allowance for loan losses	$	159		$	161		$	165		$	164		$	169
Allowance for lending-related commitments	102			104			105			112			112
Allowance for credit losses - beginning of period	$	261		$	265		$	270		$	276		$	281

Net recoveries (charge-offs):
Charge-offs	—			—			—			—			(1		)
Recoveries	—			2			1			1			1
Total net recoveries (charge-offs)	—			2			1			1			—
Provision for credit losses	(5		)	(6		)	(6		)	(7		)	(5		)
Allowance for credit losses - end of period	$	256		$	261		$	265		$	270		$	276

Allowance for credit losses - end of period:
Allowance for loan losses	$	156		$	159		$	161		$	165		$	164
Allowance for lending-related commitments	100			102			104			105			112
Allowance for credit losses - end of period	$	256		$	261		$	265		$	270		$	276

Allowance for loan losses as a percentage of total loans	0.26		%	0.26		%	0.27		%	0.27		%	0.27		%

Nonperforming assets	$	85		$	90		$	94		$	100		$	107



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

BNY Mellon has included in this Financial Supplement certain Non-GAAP financial measures on a tangible basis, as a supplement to GAAP information. Tangible common shareholders’ equity excludes goodwill and intangible assets, net of deferred tax liabilities. 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 assets that 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 to shares of common stock outstanding.

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 the comparison 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.

BNY Mellon has presented the operating margin for the Investment Management business net of distribution and servicing expense that was passed to third parties who distribute or service our managed funds. BNY Mellon believes that this measure is useful when evaluating the performance of the Investment Management business relative to industry competitors.

The presentation of the growth rates of investment management and performance fees 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 were determined 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 a clearer picture of the related revenue results without the variability caused by fluctuations in foreign currency exchange rates.

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

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

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


Return on common equity and tangible common equity reconciliation
(dollars in millions)	1Q18			4Q17			3Q17			2Q17			1Q17
Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP	$	1,135		$	1,126		$	983		$	926		$	880
Add: Amortization of intangible assets	49			52			52			53			52
Less: Tax impact of amortization of intangible assets	12			18			17			19			18
Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets – Non-GAAP	$	1,172		$	1,160		$	1,018		$	960		$	914

Average common shareholders’ equity	$	37,593		$	36,952		$	36,780		$	35,862		$	34,965
Less: Average goodwill	17,581			17,518			17,497			17,408			17,338
Average intangible assets	3,397			3,437			3,487			3,532			3,578
Add: Deferred tax liability – tax deductible goodwill (a)	1,042			1,034			1,561			1,542			1,518
Deferred tax liability – intangible assets (a)	716			718			1,092			1,095			1,100
Average tangible common shareholders’ equity – Non-GAAP	$	18,373		$	17,749		$	18,449		$	17,559		$	16,667

Return on common equity – GAAP	12.2		%	12.1		%	10.6		%	10.4		%	10.2		%
Return on tangible common equity – Non-GAAP	25.9		%	25.9		%	21.9		%	21.9		%	22.2		%
(a) Deferred tax liabilities, for the prior periods, are based on fully phased-in U.S. capital rules.



THE BANK OF NEW YORK MELLON CORPORATION
SUPPLEMENTAL INFORMATION – EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
Book value and tangible book value per common share reconciliation	2018			2017
(dollars in millions except common shares)	March 31			Dec. 31			Sept. 30			June 30			March 31
BNY Mellon shareholders’ equity at period end – GAAP	$	41,728		$	41,251		$	40,523		$	39,974		$	39,138
Less: Preferred stock	3,542			3,542			3,542			3,542			3,542
BNY Mellon common shareholders’ equity at period end – GAAP	38,186			37,709			36,981			36,432			35,596
Less: Goodwill	17,596			17,564			17,543			17,457			17,355
Intangible assets	3,370			3,411			3,461			3,506			3,549
Add: Deferred tax liability – tax deductible goodwill (a)	1,042			1,034			1,561			1,542			1,518
Deferred tax liability – intangible assets (a)	716			718			1,092			1,095			1,100
BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP	$	18,978		$	18,486		$	18,630		$	18,106		$	17,310

Period-end common shares outstanding (in thousands)	1,010,676			1,013,442			1,024,022			1,033,156			1,039,877

Book value per common share – GAAP	$	37.78		$	37.21		$	36.11		$	35.26		$	34.23
Tangible book value per common share – Non-GAAP	$	18.78		$	18.24		$	18.19		$	17.53		$	16.65
(a) Deferred tax liabilities, for the prior periods, are based on fully phased-in U.S. capital rules.



Net interest margin reconciliation
(dollars in millions)	1Q18			4Q17			3Q17			2Q17			1Q17
Net interest revenue – GAAP	$	919		$	851		$	839		$	826		$	792
Add: Tax equivalent adjustment	6			11			12			12			12
Net interest revenue (FTE) – Non-GAAP	$	925		$	862		$	851		$	838		$	804

Average interest-earning assets	$	302,069		$	297,166		$	291,841		$	289,496		$	283,421

Net interest margin – GAAP (a)	1.22		%	1.14		%	1.15		%	1.14		%	1.13		%
Net interest margin (FTE) – Non-GAAP (a)	1.23		%	1.16		%	1.16		%	1.16		%	1.14		%
(a) Net interest margin is annualized.



THE BANK OF NEW YORK MELLON CORPORATION
SUPPLEMENTAL INFORMATION – EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
Pre-tax operating margin reconciliation - Investment Management business
(dollars in millions)	1Q18			4Q17			3Q17			2Q17			1Q17
Income before income taxes – GAAP	$	381		$	276		$	300		$	288		$	277

Total revenue – GAAP	$	1,088		$	1,048		$	1,000		$	986		$	963
Less: Distribution and servicing expense	110			107			110			104			101
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP	$	978		$	941		$	890		$	882		$	862

Pre-tax operating margin – GAAP (a)	35		%	26		%	30		%	29		%	29		%
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a)	39		%	29		%	34		%	33		%	32		%
(a) Income before taxes divided by total revenue.



Pre-tax operating margin reconciliation - Investment Management business
(dollars in millions)							2017			2016			2015
Income before income taxes – GAAP							$	1,141		$	967		$	1,048

Total revenue – GAAP							$	3,997		$	3,751		$	3,906
Less: Distribution and servicing expense							422			404			378
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP							$	3,575		$	3,347		$	3,528

Pre-tax operating margin – GAAP (a)							29		%	26		%	27		%
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a)							32		%	29		%	30		%
(a) Income before taxes divided by total revenue.



Constant currency reconciliations													1Q18 vs.
(dollars in millions)							1Q18			1Q17			1Q17
Consolidated:
Investment management and performance fees							$	960		$	842		14		%
Impact of changes in foreign currency exchange rates							—			37
Adjusted investment management and performance fees – Non-GAAP							$	960		$	879		9		%


Investment Management business:
Investment management and performance fees							$	946		$	826		15		%
Impact of changes in foreign currency exchange rates							—			37
Adjusted investment management and performance fees – Non-GAAP							$	946		$	863		10		%

BNY Mellon First Quarter 2018 Financial Highlights April 19, 2018

2 First Quarter 2018 – Financial Highlights Cautionary Statement A number of statements in our presentations, the accompanying slides and the responses to your questions are “forward-looking statements.” Words such as “estimate”, “forecast”, “project”, “anticipate”, “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: capital plans, strategic priorities, financial goals, client experience, driving revenue growth, preliminary business metrics; and statements regarding the Corporation's aspirations, as well as the Corporation’s overall plans, strategies, goals, objectives, expectations, outlooks, 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 outcomes 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, 2017 (the “2017 Annual Report”) and in other filings of the Corporation with the Securities and Exchange Commission (the “SEC”). Such forward-looking statements speak only as of April 19, 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. For additional information regarding the Corporation, please refer to the Corporation's SEC filings available at www.bnymellon.com/investorrelations. Non-GAAP Measures: In this presentation we 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 2017 Annual Report, and are available at www.bnymellon.com/ investorrelations.

3 First Quarter 2018 – Financial Highlights • Earnings of $1.14 billion and diluted earnings per common share of $1.10 • Total revenue of $4.2 billion, up 9% ◦ Fee revenue up 10% ◦ Net interest revenue up 16% ◦ Weaker U.S. dollar increased total revenue by ~2% • Total noninterest expense of $2.7 billion, up 4% ◦ Generated positive operating leverage and increased margin from 31% to 35% ◦ Weaker U.S. dollar increased expense ~3% • Returned approximately $890 million of capital to common shareholders ◦ Repurchased 11 million common shares for $644 million ◦ Paid $246 million in dividends to common shareholders First Quarter 2018 - Financial Highlights Growth vs. ($ in millions, except per share data) 1Q18 4Q17 1Q17 Fee revenue $ 3,319 15% 10% Net securities (losses) gains (49) N/M N/M Fee and other revenue 3,270 14 8 (Loss) income from consolidated investment management funds (11) N/M N/M Net interest revenue 919 8 16 Total revenue 4,178 12 9 Provision for credit losses (5) N/M N/M Noninterest expenses 2,739 (9) 4 Income before income taxes 1,444 N/M 20 Net income applicable to common shareholders $ 1,135 1% 29% Operating leverage (a) N/M +505 bps Pre-tax operating margin 35% N/M +316 bps Earnings per common share $ 1.10 2% 33% Common equity Tier 1 (“CET1”) (b) 10.7% +42 bps +70 bps Return on tangible common equity (“ROTCE”) (c) 25.9% (7) bps +364 bps Note: See page 13 for corresponding footnotes in Appendix. N/M - not meaningful; bps - basis points Financial Performance

4 First Quarter 2018 – Financial Highlights First Quarter 2018 - Financial Highlights Income Before Income Taxes ($mm) 1Q17 4Q17 1Q18 $1,206 $728 $1,444 (a) Represents a Non-GAAP measure. See Appendix for reconciliation. 20% Total Revenue ($mm) 1Q17 4Q17 1Q18 $3,843 $3,728 $4,178 9% Earnings Per Share 1Q17 4Q17 1Q18 $0.83 $1.08 $1.10 Total Noninterest Expense ($mm) 1Q17 4Q17 1Q18 $2,642 $3,006 $2,739 4% Pre-tax Operating Margin 1Q17 4Q17 1Q18 31% 20% 35% ROTCE 1Q17 4Q17 1Q18 22% 26% 26% (a)

5 First Quarter 2018 – Financial Highlights Investment Services Business Highlights Note: See page 13 for corresponding footnotes in Appendix. See page 14 "Change in Presentation" for additional information on the Investment Services business. N/M - not meaningful Business Performance Drivers year-over-year Growth vs. Financial Highlights ($millions) 1Q18 4Q17 1Q17 Total revenue by line of business: (a) Asset Servicing $ 1,519 4% 13% Pershing 581 2 11 Issuer Services 418 19 6 Treasury Services 321 — 6 Clearance and Collateral Management 255 1 13 Total revenue by line of business 3,094 5 11 Provision for credit losses (7) N/M N/M Noninterest expense 1,949 (7) 5 Income before taxes $ 1,152 34% 22% Pre-tax operating margin 37% 816 bps 347 bps Growth vs. Key Metrics ($millions unless otherwise noted) 1Q18 4Q17 1Q17 Foreign exchange revenue $ 169 1 % 10 % Securities lending revenue $ 48 7 % 20 % Average loans $ 39,200 1 % (8)% Average deposits $ 214,130 5 % 8 % AUC/A at period end (in trillions) (b) (c) $ 33.5 1 % 9 % Market value of securities on loan at period end (in billions) (d) $ 436 7 % 39 % Pershing Average active clearing accounts (U.S. platform) (in thousands) 6,075 (1)% — % Average long-term mutual fund assets (U.S. platform) $ 514,542 1 % 12 % Average investor margin loans (U.S. platform) $ 10,930 11 % 2 % Clearance and Collateral Management Average tri-party repo balances (in trillions) $ 2.7 4 % 14 % • Total revenue up 11% • Asset Servicing, up 13% ◦ Higher net interest revenue, fees driven by higher volumes, market values and foreign exchange volumes, and the favorable impact of a weaker U.S. dollar • Pershing, up 11% ◦ Higher net interest revenue and fees from growth in long-term mutual fund balances and clearance volumes • Issuer Services, up 6% ◦ Higher net interest revenue in Corporate Trust and the favorable impact of a weaker U.S. dollar • Treasury Services, up 6% ◦ Higher net interest revenue and payment volumes • Clearance and Collateral Management, up 13% ◦ Growth in collateral management, higher clearance volumes and net interest revenue • Total noninterest expense up 5% ◦ Higher technology costs ◦ Unfavorable impact of the weaker U.S. dollar ◦ Higher volume-related sub-custodian and clearing expense ◦ Partially offset by lower consulting expenses • AUC/A increased 9% to $33.5 trillion

6 First Quarter 2018 – Financial Highlights Investment Management Business Highlights Note: See page 13 for corresponding footnotes in Appendix. See page 14 "Change in Presentation" for additional information on the Investment Management business. N/M - not meaningful Business Performance Drivers year-over-year Growth vs. Financial Highlights ($millions) 1Q18 4Q17 1Q17 Total revenue by line of business: (a) Asset Management $ 770 4% 16% Wealth Management 318 3 5 Total revenue by line of business 1,088 4 13 Provision for credit losses 2 N/M N/M Noninterest expense 705 (9) 3 Income before taxes $ 381 38% 38% Pre-tax operating margin 35% 871 bps 628 bps Adjusted pre-tax operating margin – Non-GAAP (b) 39% 968 bps 688 bps Growth vs. Key Metrics ($millions unless otherwise noted) 1Q18 4Q17 1Q17 Average loans $ 16,876 — % 4 % Average deposits $ 13,363 15 % (15)% Total Wealth Management client assets (in billions) (c) $ 246 (2)% 4 % Changes in AUM (in billions): (d) 4Q17 1Q17 Beginning balance of AUM $ 1,893 $1,824 $1,648 Net inflows (outflows): Equity — (6) (4) Fixed income 7 (2) 2 Liability-driven investments (e) 13 23 14 Multi-asset and alternative investments (3) 2 2 Index (13) (1) — Total long-term strategies inflows 4 16 14 Cash (14) (4) 13 Total net (outflows) inflows (10) 12 27 Net market impact (14) 47 41 Net currency impact 29 10 11 Divestiture/Other (f) (30) — — Ending balance of AUM $ 1,868 $1,893 $1,727 • Total revenue up 13% • Asset Management, up 16% ◦ Higher equity market values ◦ Favorable impact of weaker U.S. dollar ◦ Higher performance fees ◦ CenterSquare sale • Wealth Management, up 5% ◦ Higher equity market values ◦ Net new business ◦ Partially offset by lower net interest revenue from lower deposit balances • Total noninterest expense up 3% ◦ Unfavorable impact of weaker U.S. dollar

7 First Quarter 2018 – Financial Highlights Other Segment Business Performance DriversFinancial Highlights ($millions) 1Q18 4Q17 1Q17 Fee revenue $ 57 $ (221) $ 62 Net securities (losses) gains (49) (26) 10 Total fee and other revenue (loss) 8 (247) 72 Net interest (expense) (1) (36) (1) Total revenue (loss) 7 (283) 71 Provision for credit losses — (5) (8) Noninterest expense 87 135 107 (Loss) before taxes $ (80) $ (413) $ (28) • Fee revenue increased sequentially, primarily reflecting the 4Q17 impact of the enactment of the U.S. tax legislation • Net securities losses in 1Q18 primarily related to sale of approximately $1 billion of debt securities • Noninterest expense decreased year-over-year reflecting lower professional, legal and other purchased services, partially offset by higher incentive expense

8 First Quarter 2018 – Financial Highlights Capital and Liquidity March 31, 2018 Dec. 31, 2017 Consolidated regulatory capital ratios - fully phased-in basis: (a) (b) Advanced Approach: CET1 ratio 10.7% 10.3% Tier 1 capital ratio 12.7 12.3 Total capital ratio 13.5 13.0 Tier 1 leverage ratio 6.5 6.4 Supplementary leverage ratio ("SLR") 5.9 5.9 Average liquidity coverage ratio ("LCR") 116% 118% Book value per common share (c) $ 37.78 $ 37.21 Tangible book value per common share – Non-GAAP (c) $ 18.78 $ 18.24 Cash dividends per common share $ 0.24 $ 0.24 Common dividend payout ratio 22% 22% Closing stock price per common share $ 51.53 $ 53.86 Market capitalization (in millions) $ 52,080 $ 54,584 Common shares outstanding (in thousands) 1,010,676 1,013,442 Note: See page 13 for corresponding footnotes in Appendix.

9 First Quarter 2018 – Financial Highlights Net Interest Revenue Growth vs. ($ in millions) 1Q18 4Q17 1Q17 Net interest revenue $ 919 8% 16% Add: Tax equivalent adjustment 6 N/M N/M Net interest revenue (FTE) – Non-GAAP (a) $ 925 7% 15% Net interest margin 1.22% 8 bps 9 bps Net interest margin (FTE) – Non-GAAP (a) 1.23% 7 bps 9 bps Selected average balances: Cash/interbank investments $120,821 3% 14% Trading account securities 4,183 54 86 Securities 118,459 (1) 3 Loans 58,606 3 (3) Interest-earning assets 302,069 2 7 Interest-bearing deposits 155,704 5 11 Federal funds purchased and securities sold under repurchase agreements 18,963 (6) — Long-term debt 28,407 1 10 Other interest-bearing liabilities 23,920 (8) 5 Interest-bearing liabilities 226,994 2 9 Noninterest-bearing deposits 71,005 3 (3) Note: See page 13 for corresponding footnotes in Appendix. FTE – fully taxable equivalent; N/M – not meaningful; bps – basis points Financial Performance Drivers year-over-year • Net interest revenue up 16% ◦ Higher interest rates and deposits ◦ Partially offset by higher average long-term debt • NIM up 9 bps to 1.22%

10 First Quarter 2018 – Financial Highlights Noninterest Expense Growth vs. ($ in millions) 1Q18 4Q17 1Q17 Staff (a) $ 1,576 (3)% 6% Professional, legal and other purchased services 291 (14) (7) Software and equipment 234 (21) 5 Net occupancy 139 (9) 2 Sub-custodian and clearing (b) 119 17 16 Distribution and servicing 106 — 6 Bank assessment charges 52 (2) (9) Business development 51 (23) — Amortization of intangible assets 49 (6) (6) Other (a)(b)(c) 122 (42) 3 Total noninterest expense $ 2,739 (9)% 4% Financial Performance Drivers year-over-year • Noninterest expense up 4% ◦ Unfavorable impact of weaker U.S. dollar ◦ Higher staff expense ◦ Higher volume-related sub-custodian and clearing expenses ◦ Partially offset by lower consulting expense Note: See page 13 for corresponding footnotes in Appendix.

11 First Quarter 2018 – Financial Highlights Fee and Other Revenue Growth vs. ($ in millions) 1Q18 4Q17 1Q17 Investment services fees: Asset servicing $ 1,113 3% 10% Securities lending 55 8 12 Clearing services 414 4 10 Issuer services 260 32 4 Treasury services 138 1 (1) Total investment services fees 1,980 6 8 Investment management and performance fees 960 — 14 Foreign exchange 183 5 19 Other trading revenue (loss) 26 N/M N/M Total foreign exchange and other trading revenue 209 26 27 Financing-related fees 52 (4) (5) Distribution and servicing 36 (5) (12) Investment and other income (loss) 82 N/M N/M Total fee revenue 3,319 15 10 Net securities (losses) gains (49) N/M N/M Total fee and other revenue $ 3,270 14% 8% Note: N/M - not meaningful

Appendix

13 First Quarter 2018 – Financial Highlights Footnotes First Quarter 2018 - Financial Highlights, Page 3 (a) Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense. (b) Regulatory capital ratios for March 31, 2018 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, which for the periods referenced was the advanced approach. (c) Quarterly results are annualized. Represents a Non-GAAP measure. See Appendix for a reconciliation. Investment Services Business Highlights, Page 5 (a) See "Change in Presentation" on page 14 for additional information on the Investment Services business. (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 March 31, 2018 and Dec. 31, 2017 and $1.2 trillion at March 31, 2017. (c) Current period is 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 $73 billion at March 31, 2018, $71 billion at Dec. 31, 2017 and $65 billion at March 31, 2017. Investment Management Business Highlights, Page 6 (a) See "Change in Presentation" on page 14 for additional information on the Investment Management business (b) Net of distribution and servicing expense. See corresponding Appendix pages for reconciliation of this Non-GAAP measure. In 1Q18, the adjusted pre-tax margin - Non-GAAP for prior periods was restated to include amortization of intangible assets and the provision for credit losses. (c) Current period is preliminary. Includes AUM and AUC/A in the Wealth Management business. (d) Current period is preliminary. Excludes securities lending cash management assets and assets managed in the Investment Services business. (e) Includes currency overlay AUM. (f) Primarily reflects a change in methodology beginning in 1Q18 to exclude AUM related to equity method investments as well as the CenterSquare divestiture. Capital and Liquidity, Page 8 (a) Regulatory capital ratios for March 31, 2018 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, which for the periods included was the Advanced Approaches. (b) Regulatory capital ratios for Dec. 31, 2017 are presented on a fully phased-in basis. On a transitional basis at Dec. 31, 2017, the CET1 ratio was 10.7%, the Tier 1 capital ratio was 12.7%, the Total capital ratio was 13.4%, the Tier 1 leverage ratio was 6.6% and the SLR was 6.1%. (c) Tangible book value per common share – Non-GAAP excludes goodwill and intangible assets, net of deferred tax liabilities. See corresponding Appendix pages for reconciliation of this Non-GAAP measure. Net Interest Revenue, Page 9 (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. Noninterest Expense, Page 10 (a) In 1Q18, we adopted new accounting guidance included in ASU 2017-07, Compensation-Retirement Benefits - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which required the reclassification of the components of pension and other post-retirement costs, other than the service cost component. As a result, staff expense increased and other expense decreased. Prior periods have been reclassified. (b) Beginning in 1Q18, clearing expense, which was previously included in other expense, was included with sub-custodian expense. Prior periods have been reclassified. (c) Beginning in 1Q18, merger and integration ("M&I"), litigation and restructuring charges are no longer separately disclosed. Expenses previously reported in this line have been reclassified to existing expenses, primarily other expense.

14 First Quarter 2018 – Financial Highlights Change in Presentation In 1Q18, we began presenting total revenue for each of the primary lines of business in our two principal businesses. The table to the right summarizes the products and services in each line of business and the primary types of revenue generated. BNY Mellon believes that the updated presentations provides investors a clearer picture of our business results and permits investors to view revenue on a basis consistent with management. Investment Services business Lines of business Primary products and services Primary types of revenue Asset Servicing Custody, accounting, ETF services, middle-office solutions, transfer agency, services for private equity and real estate funds, foreign exchange, securities lending, liquidity/lending services, prime brokerage and data analytics - Asset servicing fees (includes securities lending revenue) - Foreign exchange revenue - Net interest revenue - Financing-related fees Pershing Clearing and custody, investment, wealth and retirement solutions, technology and enterprise data management, trading services, and prime brokerage - Clearing services fees - Net interest revenue Issuer Services Corporate Trust (trustee, administration and agency services and reporting and transparency) and Depositary Receipts, (issuer services and support for brokers and investors) - Issuer services fees - Net interest revenue - Foreign exchange revenue Treasury Services Integrated cash management solutions including payments, foreign exchange, liquidity management, receivables processing and payables management and trade finance and processing - Treasury services fees - Net interest revenue Clearance and Collateral Management U.S. government clearing, global collateral management and tri-party repo - Asset servicing fees - Net interest revenue Investment Management business Lines of business Primary products and services Primary types of revenue Asset Management Diversified investment management strategies and distribution of investment products - Investment management fees - Performance fees - Distribution and servicing fees Wealth Management Investment management, custody, wealth and estate planning and private banking services - Investment management fees - Net interest revenue The following updates to our presentations also began in 1Q18. Prior period have been reclassified or restated. • Clearing expense, previously included in other expense, has been reclassified to sub-custodian expense and renamed sub-custodian and clearing expense. • M&I, litigation and restructuring charges are no longer separately disclosed on the income statement. Expenses previously reported in this line have been reclassified to existing expenses, primarily other expense. • The adjusted pre-tax operating margin (Non-GAAP) for the Investment Management business no longer excludes amortization of intangible assets and provision for credit losses.

15 First Quarter 2018 – Financial Highlights Return on Common Equity and Tangible Common Equity Reconciliation 1Q18 4Q17 1Q17($ in millions) Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP $ 1,135 $ 1,126 $ 880 Add: Amortization of intangible assets 49 52 52 Less: Tax impact of amortization of intangible assets 12 18 18 Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation excluding amortization of intangible assets – Non-GAAP $ 1,172 $ 1,160 $ 914 Average common shareholders’ equity $ 37,593 $ 36,952 $ 34,965 Less: Average goodwill 17,581 17,518 17,338 Average intangible assets 3,397 3,437 3,578 Add: Deferred tax liability – tax deductible goodwill (a) 1,042 1,034 1,518 Deferred tax liability – intangible assets (a) 716 718 1,100 Average tangible common shareholders’ equity – Non-GAAP $ 18,373 $ 17,749 $ 16,667 Return on common equity (annualized) – GAAP 12.2% 12.1% 10.2% Return on tangible common equity (annualized) – Non-GAAP 25.9% 25.9% 22.2% (a) Deferred tax liabilities, for the prior periods, are based on fully phased-in U.S. capital rules. Book Value and Tangible Book Value Per Share Reconciliation ($ in millions, except common shares) March 31, 2018 Dec. 31, 2017 March 31, 2017 BNY Mellon shareholders’ equity at period end – GAAP $ 41,728 $ 41,251 $ 39,138 Less: Preferred stock 3,542 3,542 3,542 BNY Mellon common shareholders’ equity at period end – GAAP 38,186 37,709 35,596 Less: Goodwill 17,596 17,564 17,355 Intangible assets 3,370 3,411 3,549 Add: Deferred tax liability – tax deductible goodwill (a) 1,042 1,034 1,518 Deferred tax liability – intangible assets (a) 716 718 1,100 BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP $ 18,978 $ 18,486 $ 17,310 Period-end common shares outstanding (in thousands) 1,010,676 1,013,442 1,039,877 Book value per common share – GAAP $ 37.78 $ 37.21 $ 34.23 Tangible book value per common share – Non-GAAP $ 18.78 $ 18.24 $ 16.65

16 First Quarter 2018 – Financial Highlights Pre-tax Operating Margin Reconciliation - Investment Management Business 1Q18 4Q17 1Q17($ in millions) Income before income taxes – GAAP $ 381 $ 276 $ 277 Total revenue – GAAP $ 1,088 $ 1,048 $ 963 Less: Distribution and servicing expense 110 107 101 Adjusted total revenue, net of distribution and servicing expense – Non-GAAP $ 978 $ 941 $ 862 Pre-tax operating margin – GAAP (a) 35% 26% 29% Adjusted pre-tax operating margin, excluding distribution and servicing expense – Non-GAAP (a) 39% 29% 32% (a) Income before taxes divided by total revenue. (b) Other charges include severance, litigation, an asset impairment and investment securities losses related to the sale of certain securities. 4Q17 Impact of U.S. Tax Legislation and Other Charges ($ in millions, except per share data) U.S. Tax Legislation Other Charges(b) Fee and other revenue $ (279) $ (37) Income from consolidated investment management funds — — Net interest revenue (4) — Total revenue (283) (37) Provision for credit losses — — Total noninterest expense — 282 Income before taxes (283) (319) (Benefit) provision for income taxes (710) (73) Net income $ 427 $ (246) Diluted earnings per common share $ 0.41 $ (0.24) (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 and as further information becomes available.



Exhibit
Number			Description

99.1			The Bank of New York Mellon Corporation Earnings Release dated April 19, 2018, announcing financial results for the first quarter of 2018.

99.2			The Bank of New York Mellon Corporation Financial Supplement dated April 19, 2018, for the first quarter of 2018.

99.3			First Quarter 2018 Financial Highlights Presentation dated April 19, 2018.



News Release