Document


The Bank of New York Mellon Corporation

Financial Supplement

Third Quarter 2021


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
Capital and Liquidity						8

Business Segment Results
Investment Services Business						9
Investment and Wealth Management Business						11
AUM by Product, AUM Flows and Wealth Management Client Assets						12
Other Segment						13

Other
Securities Portfolio						14
Allowance for Credit Losses and Nonperforming Assets						15

Supplemental Information – Explanation of GAAP and Non-GAAP Financial Measures						16


THE BANK OF NEW YORK MELLON CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(dollars in millions, except per common share amounts, or unless otherwise noted)																3Q21 vs.										YTD21 vs.
	3Q21			2Q21			1Q21			4Q20			3Q20			2Q21		3Q20		YTD21			YTD20			YTD20
Selected income statement data
Fee revenue	$	3,265		$	3,224		$	3,257		$	3,114		$	3,074		1	%	6	%	$	9,746		$	9,401		4	%
Other revenue	129			91			9			49			70			N/M		N/M		229			267			N/M
Total fee and other revenue	3,394			3,315			3,266			3,163			3,144			2		8		9,975			9,668			3
Net interest revenue	641			645			655			680			703			(1)		(9)		1,941			2,297			(15)
Total revenue	4,035			3,960			3,921			3,843			3,847			2		5		11,916			11,965			—
Provision for credit losses	(45)			(86)			(83)			15			9			N/M		N/M		(214)			321			N/M
Noninterest expense	2,918			2,778			2,851			2,925			2,681			5		9		8,547			8,079			6
Income before income taxes	1,162			1,268			1,153			903			1,157			(8)		—		3,583			3,565			1
Provision for income taxes	219			241			221			148			213			(9)		3		681			694			(2)
Net income	$	943		$	1,027		$	932		$	755		$	944		(8)	%	—	%	$	2,902		$	2,871		1	%
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	881		$	991		$	858		$	702		$	876		(11)	%	1	%	$	2,730		$	2,721		—	%
Diluted earnings per common share	$	1.04		$	1.13		$	0.97		$	0.79		$	0.98		(8)	%	6	%	$	3.14		$	3.04		3	%
Average common shares and equivalents outstanding – diluted (in thousands)	849,028			873,475			885,655			891,846			891,069			(3)	%	(5)	%	869,324			892,793			(3)	%

Financial ratios (Returns are annualized)
Pre-tax operating margin	29		%	32		%	29		%	24		%	30		%					30		%	30		%
Return on common equity	8.8		%	9.8		%	8.5		%	6.9		%	8.7		%					9.1		%	9.4		%
Return on tangible common equity – Non-GAAP (a)	16.8		%	18.6		%	16.1		%	13.0		%	16.7		%					17.1		%	18.5		%
Non-U.S. revenue as a percentage of total revenue	38		%	38		%	37		%	38		%	37		%					38		%	37		%

Period end
Assets under custody and/or administration (“AUC/A”) (in trillions) (b)	$	45.3		$	45.0		$	41.7		$	41.1		$	38.6		1	%	17	%
Assets under management (“AUM”) (in trillions)	$	2.31		$	2.32		$	2.21		$	2.21		$	2.04		—	%	13	%
Full-time employees	48,900			48,800			48,000			48,500			48,600			—	%	1	%
Book value per common share	$	47.30		$	47.20		$	46.16		$	46.53		$	45.58
Tangible book value per common share – Non-GAAP (a)	$	24.88		$	25.64		$	24.88		$	25.44		$	24.60
Cash dividends per common share	$	0.34		$	0.31		$	0.31		$	0.31		$	0.31
Common dividend payout ratio	33		%	27		%	32		%	39		%	32		%
Closing stock price per common share	$	51.84		$	51.23		$	47.29		$	42.44		$	34.34
Market capitalization	$	42,811		$	44,220		$	41,401		$	37,634		$	30,430
Common shares outstanding (in thousands)	825,821			863,174			875,481			886,764			886,136

Capital ratios at period end (c)
Common Equity Tier 1 ("CET1") ratio	11.7		%	12.6		%	12.6		%	13.1		%	13.0		%
Tier 1 capital ratio	14.4		%	15.2		%	15.2		%	15.8		%	15.7		%
Total capital ratio	15.3		%	16.0		%	16.1		%	16.7		%	16.6		%
Tier 1 leverage ratio	5.7		%	6.0		%	5.8		%	6.3		%	6.5		%
Supplementary leverage ratio ("SLR")	7.0		%	7.5		%	8.1		%	8.6		%	8.5		%
(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 16 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 $1.7 trillion at Sept. 30, 2021 and June 30, 2021, $1.6 trillion at March 31, 2021, $1.5 trillion at Dec. 31, 2020 and $1.4 trillion at Sept. 30, 2020.
(c) Regulatory capital ratios for Sept. 30, 2021 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 Sept. 30, 2021, June 30, 2021 and March 31, 2021 was the Standardized Approach for the CET1 and Tier 1 capital ratios and the Advanced Approaches for the Total capital ratio, and for Dec. 31, 2020 and Sept. 30, 2020, was the Advanced Approaches.
N/M – Not meaningful.


THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENT

(dollars in millions, except per share amounts; common shares in thousands)											3Q21 vs.								YTD21 vs.
	3Q21		2Q21		1Q21		4Q20		3Q20		2Q21		3Q20		YTD21		YTD20		YTD20
Revenue
Investment services fees:
Asset servicing fees	$	1,223	$	1,200	$	1,199	$	1,138	$	1,168	2	%	5	%	$	3,622	$	3,500	3	%
Clearing services fees	423		435		455		418		397		(3)		7		1,313		1,298		1
Issuer services fees	280		281		245		257		295		—		(5)		806		835		(3)
Treasury services fees	165		160		157		156		152		3		9		482		445		8
Total investment services fees	2,091		2,076		2,056		1,969		2,012		1		4		6,223		6,078		2
Investment management and performance fees	913		889		890		884		835		3		9		2,692		2,483		8
Foreign exchange revenue	185		184		231		187		149		1		24		600		587		2
Financing-related fees	48		48		51		46		49		—		(2)		147		166		(11)
Distribution and servicing	28		27		29		28		29		4		(3)		84		87		(3)
Total fee revenue	3,265		3,224		3,257		3,114		3,074		1		6		9,746		9,401		4
Investment and other income	127		89		9		43		61		N/M		N/M		225		240		N/M
Net securities gains	2		2		—		6		9		N/M		N/M		4		27		N/M
Total other revenue	129		91		9		49		70		N/M		N/M		229		267		N/M
Total fee and other revenue	3,394		3,315		3,266		3,163		3,144		2		8		9,975		9,668		3
Net interest revenue	641		645		655		680		703		(1)		(9)		1,941		2,297		(15)
Total revenue	4,035		3,960		3,921		3,843		3,847		2		5		11,916		11,965		—
Provision for credit losses	(45)		(86)		(83)		15		9		N/M		N/M		(214)		321		N/M
Noninterest expense
Staff	1,584		1,518		1,602		1,554		1,466		4		8		4,704		4,412		7
Software and equipment	372		365		362		359		340		2		9		1,099		1,011		9
Professional, legal and other purchased services	363		363		343		381		355		—		2		1,069		1,022		5
Sub-custodian and clearing	129		132		124		116		119		(2)		8		385		344		12
Net occupancy	120		122		123		173		136		(2)		(12)		365		408		(11)
Distribution and servicing	76		73		74		75		85		4		(11)		223		261		(15)
Bank assessment charges	34		35		34		24		30		(3)		13		103		100		3
Amortization of intangible assets	19		20		24		26		26		(5)		(27)		63		78		(19)
Business development	22		22		19		26		17		—		29		63		79		(20)
Other	199		128		146		191		107		55		86		473		364		30
Total noninterest expense	2,918		2,778		2,851		2,925		2,681		5		9		8,547		8,079		6
Income before income taxes	1,162		1,268		1,153		903		1,157		(8)		—		3,583		3,565		1
Provision for income taxes	219		241		221		148		213		(9)		3		681		694		(2)
Net income	943		1,027		932		755		944		(8)		—		2,902		2,871		1
Net loss (income) attributable to noncontrolling interests	4		(5)		(5)		(5)		(7)		N/M		N/M		(6)		(4)		N/M
Preferred stock dividends	(66)		(31)		(69)		(48)		(61)		N/M		N/M		(166)		(146)		N/M
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	881	$	991	$	858	$	702	$	876	(11)	%	1	%	$	2,730	$	2,721	—	%

Average common shares and equivalents outstanding: Basic	844,088		869,460		882,558		889,928		889,499		(3)	%	(5)	%	865,374		891,050		(3)	%
Diluted	849,028		873,475		885,655		891,846		891,069		(3)	%	(5)	%	869,324		892,793		(3)	%

Earnings per common share: Basic	$	1.04	$	1.14	$	0.97	$	0.79	$	0.98	(9)	%	6	%	$	3.15	$	3.05	3	%
Diluted	$	1.04	$	1.13	$	0.97	$	0.79	$	0.98	(8)	%	6	%	$	3.14	$	3.04	3	%
N/M – Not meaningful.


THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET

	2021				2020
(in millions)	Sept. 30		June 30		March 31		Dec. 31		Sept. 30
Assets
Cash and due from banks	$	6,752	$	5,154	$	5,991	$	6,252	$	4,104
Interest-bearing deposits with the Federal Reserve and other central banks	126,959		126,355		125,524		141,775		106,185
Interest-bearing deposits with banks	20,057		21,270		23,763		17,300		19,027
Federal funds sold and securities purchased under resale agreements	28,497		29,762		28,263		30,907		29,647
Securities	157,274		155,906		155,844		156,441		155,339
Trading assets	17,854		15,520		16,884		15,272		13,074
Loans	64,328		63,547		60,732		56,469		55,491
Allowance for loan losses	(233)		(269)		(327)		(358)		(325)
Net loans	64,095		63,278		60,405		56,111		55,166
Premises and equipment	3,422		3,442		3,521		3,602		3,617
Accrued interest receivable	464		492		485		510		489
Goodwill	17,420		17,487		17,469		17,496		17,357
Intangible assets	2,941		2,964		2,983		3,012		3,026
Other assets	24,798		25,333		23,852		20,955		21,367
Total assets	$	470,533	$	466,963	$	464,984	$	469,633	$	428,398
Liabilities
Deposits	$	343,139	$	338,670	$	336,768	$	341,545	$	296,312
Federal funds purchased and securities sold under repurchase agreements	11,973		12,425		15,150		11,305		15,907
Trading liabilities	5,152		6,451		4,566		6,031		6,084
Payables to customers and broker-dealers	26,002		23,704		23,827		25,085		23,514
Commercial paper	—		—		—		—		671
Other borrowed funds	767		451		348		350		420
Accrued taxes and other expenses	5,609		5,213		4,916		5,696		5,347
Other liabilities	8,796		8,626		8,656		7,517		8,675
Long-term debt	25,043		25,629		25,350		25,984		26,121
Total liabilities	426,481		421,169		419,581		423,513		383,051
Temporary equity
Redeemable noncontrolling interests	178		169		187		176		179
Permanent equity
Preferred stock	4,541		4,541		4,541		4,541		4,532
Common stock	14		14		14		14		14
Additional paid-in capital	28,075		28,006		27,928		27,823		27,741
Retained earnings	36,125		35,540		34,822		34,241		33,821
Accumulated other comprehensive loss, net of tax	(2,003)		(1,670)		(1,819)		(985)		(1,359)
Less: Treasury stock, at cost	(23,151)		(21,150)		(20,532)		(19,833)		(19,832)
Total The Bank of New York Mellon Corporation shareholders’ equity	43,601		45,281		44,954		45,801		44,917
Nonredeemable noncontrolling interests of consolidated investment management funds	273		344		262		143		251
Total permanent equity	43,874		45,625		45,216		45,944		45,168
Total liabilities, temporary equity and permanent equity	$	470,533	$	466,963	$	464,984	$	469,633	$	428,398


THE BANK OF NEW YORK MELLON CORPORATION
FEE AND OTHER REVENUE

											3Q21 vs.								YTD21 vs.
(dollars in millions)	3Q21		2Q21		1Q21		4Q20		3Q20		2Q21		3Q20		YTD21		YTD20		YTD20
Investment services fees:
Asset servicing fees (a)	$	1,175	$	1,155	$	1,154	$	1,099	$	1,128	2	%	4	%	$	3,484	$	3,353	4	%
Securities lending revenue	48		45		45		39		40		7		20		138		147		(6)
Clearing services fees (b)	423		435		455		418		397		(3)		7		1,313		1,298		1
Issuer services fees	280		281		245		257		295		—		(5)		806		835		(3)
Treasury services fees	165		160		157		156		152		3		9		482		445		8
Total investment services fees	2,091		2,076		2,056		1,969		2,012		1		4		6,223		6,078		2
Investment management and performance fees:
Investment management fees (c)	892		875		850		839		828		2		8		2,617		2,421		8
Performance fees	21		14		40		45		7		N/M		N/M		75		62		21
Total investment management and performance fees (d)	913		889		890		884		835		3		9		2,692		2,483		8
Foreign exchange revenue	185		184		231		187		149		1		24		600		587		2
Financing-related fees	48		48		51		46		49		—		(2)		147		166		(11)
Distribution and servicing	28		27		29		28		29		4		(3)		84		87		(3)
Total fee revenue	3,265		3,224		3,257		3,114		3,074		1		6		9,746		9,401		4
Investment and other income:
Income (loss) from consolidated investment management funds	(7)		13		17		41		27		N/M		N/M		23		43		N/M
Seed capital gains (e)	7		18		3		22		9		N/M		N/M		28		1		N/M
Other trading revenue (loss)	20		(1)		(7)		(31)		(14)		N/M		N/M		12		44		N/M
Renewable energy investment (losses)	(42)		(41)		(81)		(27)		(34)		N/M		N/M		(164)		(102)		N/M
Corporate/bank-owned life insurance	33		29		33		43		33		N/M		N/M		95		105		N/M
Other investments gains (f)	70		23		11		18		11		N/M		N/M		104		17		N/M
Disposal gains (losses)	7		6		—		(61)		—		N/M		N/M		13		—		N/M
Expense reimbursements from joint venture	25		25		23		22		23		N/M		N/M		73		63		N/M
Other income	14		17		10		16		6		N/M		N/M		41		69		N/M
Total investment and other income	127		89		9		43		61		N/M		N/M		225		240		N/M
Net securities gains	2		2		—		6		9		N/M		N/M		4		27		N/M
Total other revenue	129		91		9		49		70		N/M		N/M		229		267		N/M
Total fee and other revenue	$	3,394	$	3,315	$	3,266	$	3,163	$	3,144	2	%	8	%	$	9,975	$	9,668	3	%
(a) Asset servicing fees include the fees from the Clearance and Collateral Management business.
(b) Clearing services fees are almost entirely earned by our Pershing business.
(c) Excludes seed capital gains (losses) related to consolidated investment management funds.
(d) On a constant currency basis (Non-GAAP), investment management and performance fees increased 7% compared with 3Q20. See "Supplemental Information – Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.
(e) Includes gains (losses) on investments in BNY Mellon funds which hedge deferred incentive awards.
(f) Includes strategic equity, private equity and other investments.
N/M – Not meaningful.


THE BANK OF NEW YORK MELLON CORPORATION
AVERAGE BALANCES AND INTEREST RATES
	3Q21				2Q21				1Q21				4Q20					3Q20
	Average balance		Average rate		Average balance		Average rate		Average balance		Average rate		Average balance		Average rate			Average balance		Average rate
(dollars in millions; average rates are annualized)
Assets
Interest-earning assets:
Interest-bearing deposits with the Federal Reserve and other central banks	$	108,110	(0.07)	%	$	114,564	(0.09)	%	$	125,930	(0.05)	%	$	112,274	(0.04)	%		$	90,670	(0.04)	%
Interest-bearing deposits with banks (primarily foreign banks)	20,465		0.22		22,465		0.20		21,313		0.27		19,281		0.32			19,202		0.42
Federal funds sold and securities purchased under resale agreements (a)	29,304		0.44		27,857		0.36		29,186		0.44		28,389		0.55			30,342		0.63
Margin loans	20,374		1.02		18,995		1.04		15,891		1.14		14,097		1.23			12,870		1.24
Non-margin loans:
Domestic offices	36,872		1.90		36,455		1.90		31,218		2.02		30,855		2.08			30,053		2.12
Foreign offices	3,960		1.11		5,070		1.14		9,680		1.18		9,776		1.31			10,693		1.45
Total non-margin loans	40,832		1.82		41,525		1.81		40,898		1.82		40,631		1.90			40,746		1.94
Securities:
U.S. government obligations	36,255		0.73		33,212		0.71		28,759		0.90		27,783		0.91		(b)	30,073		1.00		(b)
U.S. government agency obligations	70,199		1.34		72,809		1.34		77,623		1.40		79,712		1.46		(b)	78,300		1.58		(b)
State and political subdivisions (c)	2,628		2.07		2,768		1.94		2,526		1.92		2,104		2.01		(b)	1,500		2.51		(b)
Other securities (c)	47,334		0.94		47,451		0.95		47,030		0.99		46,280		0.98		(b)	46,719		0.98		(b)
Total investment securities (c)	156,416		1.09		156,240		1.10		155,938		1.19		155,879		1.23			156,592		1.30
Trading securities (c)	5,564		0.53		6,639		0.72		8,141		0.95		8,123		0.95			7,212		0.91
Total securities (c)	161,980		1.07		162,879		1.08		164,079		1.18		164,002		1.22			163,804		1.28
Total interest-earning assets (c)	$	381,065	0.73	%	$	388,285	0.71	%	$	397,297	0.75	%	$	378,674	0.82	%		$	357,634	0.92	%
Noninterest-earning assets	65,696				64,044				63,082				58,814					57,231
Total assets	$	446,761			$	452,329			$	460,379			$	437,488				$	414,865

Liabilities and equity
Interest-bearing liabilities:
Interest-bearing deposits:
Domestic offices	$	123,617	(0.02)	%	$	126,953	(0.02)	%	$	128,543	(0.02)	%	$	119,012	(0.02)	%		$	102,767	(0.01)	%
Foreign offices	109,746		(0.14)		112,513		(0.15)		116,572		(0.10)		112,306		(0.10)			108,733		(0.09)
Total interest-bearing deposits	233,363		(0.08)		239,466		(0.08)		245,115		(0.06)		231,318		(0.06)			211,500		(0.05)
Federal funds purchased and securities sold under repurchase agreements (a)	13,415		0.08		13,773		(0.17)		15,288		(0.07)		14,452		0.01			16,850		0.13
Trading liabilities	2,821		0.11		2,282		0.38		2,227		0.53		2,408		0.72			2,692		0.30
Other borrowed funds	383		2.53		298		2.21		331		2.01		338		1.71			873		1.40
Commercial paper	11		0.07		—		—		—		—		275		0.10			2,274		0.09
Payables to customers and broker-dealers	16,648		(0.01)		16,811		(0.01)		17,691		(0.01)		17,521		(0.01)			18,501		(0.01)
Long-term debt	25,751		1.39		25,275		1.43		26,199		1.81		25,704		1.88			26,511		2.01
Total interest-bearing liabilities	$	292,392	0.07	%	$	297,905	0.05	%	$	306,851	0.11	%	$	292,016	0.13	%		$	279,201	0.16	%
Total noninterest-bearing deposits	85,581				85,802				83,429				75,840					67,610
Other noninterest-bearing liabilities	24,164				23,317				24,556				23,783					23,393
Total The Bank of New York Mellon Corporation shareholders’ equity	44,296				44,934				45,261				45,539					44,456
Noncontrolling interests	328				371				282				310					205
Total liabilities and equity	$	446,761			$	452,329			$	460,379			$	437,488				$	414,865
Net interest margin			0.67	%			0.67	%			0.66	%			0.72	%				0.79	%
Net interest margin (FTE) – Non-GAAP (d)			0.68	%			0.67	%			0.67	%			0.72	%				0.79	%
(a) Includes the average impact of offsetting under enforceable netting agreements of approximately $47 billion for 3Q21, $41 billion for 2Q21, $37 billion for 1Q21, $41 billion for 4Q20 and $43 billion for 3Q20. On a Non-GAAP basis, excluding the impact of offsetting, the yield on federal funds sold and securities purchased under resale agreements would have been 0.17% for 3Q21, 0.15% for 2Q21, 0.19% for 1Q21, 0.23% for 4Q20 and 0.26% for 3Q20. On a Non-GAAP basis, excluding the impact of offsetting, the rate on federal funds purchased and securities sold under repurchase agreements would have been 0.02% for 3Q21, (0.04)% for 2Q21, (0.02)% for 1Q21, 0.00% for 4Q20 and 0.04% for 3Q20. We believe providing the rates excluding the impact of netting is useful to investors as it is more reflective of the actual rates earned and paid.
(b) In 2Q21, we reclassified the impact of hedging within the categories comprising total investment securities to align the impact of hedging with the securities being hedged and reclassified prior periods to be comparable. The change reduced the income and average rates previously reported for U.S. government obligations and U.S. government agency obligations and increased the income and average rates for Other securities.
(c) Average rates were calculated on an FTE basis, at tax rates of approximately 21%.
(d) See "Supplemental Information – Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.


THE BANK OF NEW YORK MELLON CORPORATION
CAPITAL AND LIQUIDITY

	2021						2020
(dollars in millions)	Sept. 30			June 30			March 31				Dec. 31				Sept. 30
Consolidated regulatory capital ratios (a)
Standardized Approach:
CET1 capital	$	19,848		$	21,456		$	21,090			$	21,875			$	21,171
Tier 1 capital	24,296			25,896			25,534				26,310				25,611
Total capital	25,820			27,464			27,190				28,038				27,327
Risk-weighted assets	169,261			169,885			167,510				163,848				156,698

CET1 ratio	11.7		%	12.6		%	12.6		%		13.4		%		13.5		%
Tier 1 capital ratio	14.4			15.2			15.2				16.1				16.3
Total capital ratio	15.3			16.2			16.2				17.1				17.4

Advanced Approaches:
CET1 capital	$	19,848		$	21,456		$	21,090			$	21,875			$	21,171
Tier 1 capital	24,296			25,896			25,534				26,310				25,611
Total capital	25,538			27,183			26,908				27,795				27,081
Risk-weighted assets	167,445			169,380			167,035				166,426				163,108

CET1 ratio	11.9		%	12.7		%	12.6		%		13.1		%		13.0		%
Tier 1 capital ratio	14.5			15.3			15.3				15.8				15.7
Total capital ratio	15.3			16.0			16.1				16.7				16.6

Tier 1 leverage ratio:
Average assets for Tier 1 leverage ratio	$	427,465		$	432,954		$	440,968			$	417,982			$	394,945
Tier 1 leverage ratio	5.7		%	6.0		%	5.8		%		6.3		%		6.5		%

SLR:
Leverage exposure	$	347,457		$	346,455		$	314,334		(b)	$	304,823		(b)	$	300,265		(b)
SLR	7.0		%	7.5		%	8.1		%	(b)	8.6		%	(b)	8.5		%	(b)

Average liquidity coverage ratio	111		%	110		%	110		%		110		%		111		%
(a) Regulatory capital ratios for Sept. 30, 2021 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 Sept. 30, 2021, June 30, 2021 and March 31, 2021 was the Standardized Approach for the CET1 and Tier 1 capital ratios and the Advanced Approaches for the Total capital ratio, and for Dec. 31, 2020 and Sept. 30, 2020, was the Advanced Approaches.
(b) Reflects the temporary exclusion of U.S. Treasury securities from the leverage exposure used in the SLR calculation which increased our consolidated SLR by 68 basis points at March 31, 2021, 72 basis points at Dec. 31, 2020 and 78 basis points at Sept. 30, 2020. The temporary exclusion ceased to apply beginning April 1, 2021.


THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SERVICES BUSINESS

																3Q21 vs.										YTD21 vs.
(dollars in millions)	3Q21			2Q21			1Q21			4Q20			3Q20			2Q21		3Q20		YTD21			YTD20			YTD20
Revenue:
Investment services fees:
Asset servicing fees (ex. securities lending revenue) (a)	$	1,171		$	1,150		$	1,150		$	1,094		$	1,119		2	%	5	%	$	3,471		$	3,333		4	%
Securities lending revenue	45			42			41			36			37			7		22		128			134			(4)
Clearing services fees (b)	423			435			455			418			397			(3)		7		1,313			1,298			1
Issuer services fees	280			281			245			257			295			—		(5)		806			835			(3)
Treasury services fees	164			160			157			156			152			3		8		481			445			8
Total investment services fees	2,083			2,068			2,048			1,961			2,000			1		4		6,199			6,045			3
Foreign exchange revenue	148			152			193			163			126			(3)		17		493			518			(5)
Other (c)	147			116			104			111			120			27		23		367			458			(20)
Total fee and other revenue	2,378			2,336			2,345			2,235			2,246			2		6		7,059			7,021			1
Net interest revenue	632			643			645			670			681			(2)		(7)		1,920			2,255			(15)
Total revenue	3,010			2,979			2,990			2,905			2,927			1		3		8,979			9,276			(3)
Provision for credit losses	(35)			(77)			(79)			31			(10)			N/M		N/M		(191)			284			N/M
Noninterest expense (ex. amortization of intangible assets)	2,200			2,040			2,084			2,157			2,002			8		10		6,324			5,942			6
Amortization of intangible assets	11			12			17			17			18			(8)		(39)		40			54			(26)
Total noninterest expense	2,211			2,052			2,101			2,174			2,020			8		9		6,364			5,996			6
Income before taxes	$	834		$	1,004		$	968		$	700		$	917		(17)	%	(9)	%	$	2,806		$	2,996		(6)	%

Pre-tax operating margin	28		%	34		%	32		%	24		%	31		%					31		%	32		%

Total revenue by line of business:
Asset Servicing	$	1,437		$	1,382		$	1,424		$	1,357		$	1,354		4	%	6	%	$	4,243		$	4,348		(2)	%
Pershing	566			590			605			563			538			(4)		5		1,761			1,769			—
Issuer Services	400			405			363			385			435			(1)		(8)		1,168			1,285			(9)
Treasury Services	326			319			317			325			323			2		1		962			1,002			(4)
Clearance and Collateral Management	281			283			281			275			277			(1)		1		845			872			(3)
Total revenue by line of business	$	3,010		$	2,979		$	2,990		$	2,905		$	2,927		1	%	3	%	$	8,979		$	9,276		(3)	%
(a) Asset servicing fees include the fees from the Clearance and Collateral Management business.
(b) Clearing services fees are almost entirely earned by our Pershing business.
(c) Other revenue includes investment management and performance fees, financing-related fees, distribution and servicing revenue, securities gains and losses and investment and other income.
N/M – Not meaningful.


THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT SERVICES BUSINESS

											3Q21 vs.								YTD21 vs.
(dollars in millions, unless otherwise noted)	3Q21		2Q21		1Q21		4Q20		3Q20		2Q21		3Q20		YTD21		YTD20		YTD20
Average loans	$	47,430	$	46,845	$	43,468	$	41,437	$	40,308	1	%	18	%	$	45,929	$	41,731	10	%
Average assets	$	379,273	$	383,330	$	385,054	$	358,270	$	329,324	(1)	%	15	%	$	382,531	$	322,924	18	%
Average deposits	$	308,645	$	313,923	$	315,088	$	292,631	$	263,621	(2)	%	17	%	$	312,528	$	258,112	21	%

AUC/A at period end (in trillions) (a)(b)	$	45.3	$	45.0	$	41.7	$	41.1	$	38.6	1	%	17	%
Market value of securities on loan at period end (in billions) (c)	$	443	$	456	$	445	$	435	$	378	(3)	%	17	%

Pershing
Net new assets (U.S. platform) (in billions) (d)	$	7	$	40	$	28	$	28	$	12	N/M		N/M
Average active clearing accounts (U.S. platform) (in thousands)	6,849		6,889		6,757		6,635		6,556		(1)	%	4	%
Average long-term mutual fund assets (U.S. platform)	$	736,843	$	730,954	$	678,556	$	630,086	$	597,312	1	%	23	%
Average investor margin loans (U.S. platform)	$	13,050	$	12,097	$	10,937	$	10,097	$	9,350	8	%	40	%

Clearance and Collateral Management
Average tri-party collateral management balances (in billions)	$	4,516	$	3,898	$	3,638	$	3,555	$	3,417	16	%	32	%
(a) Sept. 30, 2021 information is preliminary.
(b) Consists of AUC/A primarily from the Asset Servicing business and, to a lesser extent, the Clearance and Collateral Management, Issuer Services, Pershing and Wealth Management businesses. Includes the AUC/A of CIBC Mellon of $1.7 trillion at Sept. 30, 2021 and June 30, 2021, $1.6 trillion at March 31, 2021, $1.5 trillion at Dec. 31, 2020 and $1.4 trillion at Sept. 30, 2020.
(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 $68 billion at Sept. 30, 2021, $63 billion at June 30, 2021, $64 billion at March 31, 2021, $68 billion at Dec. 31, 2020 and $62 billion at Sept. 30, 2020.
(d) Net new assets represent net flows of assets excluding dividends and interest (e.g., net cash deposits and net securities transfers) in customer accounts in Pershing LLC, a U.S. broker-dealer.
N/M – Not meaningful.


THE BANK OF NEW YORK MELLON CORPORATION
INVESTMENT AND WEALTH MANAGEMENT BUSINESS

																3Q21 vs.										YTD21 vs.
(dollars in millions)	3Q21			2Q21			1Q21			4Q20			3Q20			2Q21		3Q20		YTD21			YTD20			YTD20
Revenue:
Investment management fees (a)	$	893		$	876		$	850		$	839		$	828		2	%	8	%	$	2,619		$	2,422		8	%
Performance fees	21			14			40			45			7			N/M		200		75			62			21
Investment management and performance fees (b)	914			890			890			884			835			3		9		2,694			2,484			8
Distribution and servicing	28			28			28			29			31			—		(10)		84			108			(22)
Other (a)	43			34			25			27			5			N/M		N/M		102			(37)			N/M
Total fee and other revenue (a)	985			952			943			940			871			3		13		2,880			2,555			13
Net interest revenue	47			47			48			50			47			—		—		142			147			(3)
Total revenue	1,032			999			991			990			918			3		12		3,022			2,702			12
Provision for credit losses	(7)			(4)			4			(8)			12			N/M		N/M		(7)			28			N/M
Noninterest expense (ex. amortization of intangible assets)	684			669			702			678			653			2		5		2,055			1,990			3
Amortization of intangible assets	7			8			7			9			8			(13)		(13)		22			24			(8)
Total noninterest expense	691			677			709			687			661			2		5		2,077			2,014			3
Income before taxes	$	348		$	326		$	278		$	311		$	245		7	%	42	%	$	952		$	660		44	%

Pre-tax operating margin	34		%	33		%	28		%	32		%	27		%					31		%	24		%
Adjusted pre-tax operating margin – Non-GAAP (c)	36		%	35		%	30		%	34		%	29		%					34		%	27		%

Total revenue by line of business:
Investment Management	$	727		$	700		$	698		$	714		$	641		4	%	13	%	$	2,125		$	1,882		13	%
Wealth Management	305			299			293			276			277			2		10		897			820			9
Total revenue by line of business	$	1,032		$	999		$	991		$	990		$	918		3	%	12	%	$	3,022		$	2,702		12	%

Average loans	$	12,248		$	11,871		$	11,610		$	11,497		$	11,503		3	%	6	%	$	11,912		$	11,805		1	%
Average assets	$	30,195		$	30,370		$	32,066		$	30,804		$	30,160		(1)	%	—	%	$	30,870		$	30,343		2	%
Average deposits	$	17,270		$	17,466		$	19,177		$	18,144		$	17,570		(1)	%	(2)	%	$	17,964		$	17,070		5	%
(a) Total fee and other revenue is net of income attributable to noncontrolling interests related to consolidated investment management funds. Additionally, other revenue includes asset servicing fees, treasury services fees, foreign exchange revenue and investment and other income.
(b) On a constant currency basis (Non-GAAP), investment management and performance fees increased 8% compared with 3Q20. See "Supplemental Information – Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 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 16 for the reconciliation of this Non-GAAP measure.
N/M – Not meaningful.


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

											3Q21 vs.								YTD21 vs.
(dollars in billions)	3Q21		2Q21		1Q21		4Q20		3Q20		2Q21		3Q20		YTD21		YTD20		YTD20
AUM by product type (a)(b)
Equity	$	180	$	187	$	173	$	170	$	149	(4)	%	21	%
Fixed income	269		272		261		259		241		(1)		12
Index	436		440		419		393		350		(1)		25
Liability-driven investments	843		841		802		855		788		—		7
Multi-asset and alternative investments	218		222		214		209		193		(2)		13
Cash	364		358		345		325		320		2		14
Total AUM by product type	$	2,310	$	2,320	$	2,214	$	2,211	$	2,041	—	%	13	%

Changes in AUM (a)(b)
Beginning balance of AUM	$	2,320	$	2,214	$	2,211	$	2,041	$	1,961					$	2,211	$	1,910
Net inflows (outflows):
Long-term strategies:
Equity	(5)		(3)		—		(2)		(4)						(8)		(8)
Fixed income	1		8		8		5		1						17		5
Liability-driven investments	16		11		8		15		14						35		7
Multi-asset and alternative investments	(2)		1		(2)		—		(3)						(3)		(4)
Total long-term active strategies inflows	10		17		14		18		8						41		—
Index	(3)		(5)		3		(3)		(3)						(5)		9
Total long-term strategies inflows	7		12		17		15		5						36		9
Short-term strategies:
Cash	7		13		19		5		(10)						39		44
Total net inflows (outflows)	14		25		36		20		(5)						75		53
Net market impact	4		79		(36)		93		41						47		93
Net currency impact	(28)		2		3		57		44						(23)		(15)

Ending balance of AUM	$	2,310	$	2,320	$	2,214	$	2,211	$	2,041	—	%	13	%	$	2,310	$	2,041	13	%

Wealth Management client assets (a)(c)	$	307	$	305	$	292	$	286	$	265	1	%	16	%
(a) Sept. 30, 2021 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.


THE BANK OF NEW YORK MELLON CORPORATION
OTHER SEGMENT

(in millions)	3Q21		2Q21		1Q21		4Q20		3Q20		YTD21		YTD20
Fee revenue	$	12	$	13	$	9	$	11	$	7	$	34	$	23
Other revenue	23		9		(36)		(28)		13		(4)		65
Total fee and other revenue	35		22		(27)		(17)		20		30		88
Net interest (expense)	(38)		(45)		(38)		(40)		(25)		(121)		(105)
Total revenue	(3)		(23)		(65)		(57)		(5)		(91)		(17)
Provision for credit losses	(3)		(5)		(8)		(8)		7		(16)		9
Noninterest expense	16		49		41		64		—		106		69
(Loss) before taxes	$	(16)	$	(67)	$	(98)	$	(113)	$	(12)	$	(181)	$	(95)

Average loans and leases	$	1,528	$	1,804	$	1,711	$	1,794	$	1,805	$	1,680	$	1,861
Average assets	$	37,293	$	38,629	$	43,259	$	48,414	$	55,381	$	39,705	$	51,936


THE BANK OF NEW YORK MELLON CORPORATION
SECURITIES PORTFOLIO

(dollars in millions)	June 30, 2021			3Q21 change in unrealized gain (loss)		Sept. 30, 2021					Fair value as a % of amortized cost (a)		Unrealized gain (loss)			% Floating rate			Ratings (c)
						Amortized cost		Fair value											AAA/ AA-		A+/ A-		BBB+/ BBB-		BB+ and lower		A1+/ A2 & SP-1		Not rated
	Fair value																	(b)
Agency RMBS	$	53,944		$	(100)	$	52,223	$	52,913		101	%	$	690		13	%		100	%	—	%	—	%	—	%	—	%	—	%
U.S. Treasury	34,267			(31)		35,920		36,044			100		124			53			100		—		—		—		—		—
Sovereign debt/sovereign guaranteed	14,209			(34)		13,968		14,045			101		77			15			77		5		17		1		—		—
Agency commercial MBS	11,678			(78)		12,309		12,549			102		240			24			100		—		—		—		—		—
Supranational	8,157			(17)		7,985		8,004			100		19			56			100		—		—		—		—		—
Foreign covered bonds	6,793			(12)		6,917		6,946			100		29			37			100		—		—		—		—		—
U.S. government agencies	5,460			(8)		5,420		5,426			100		6			25			100		—		—		—		—		—
CLOs	5,139			—		5,202		5,204			100		2			100			99		—		—		1		—		—
Non-agency commercial MBS	3,263			(23)		3,108		3,167			102		59			25			100		—		—		—		—		—
Foreign government agencies	2,708			(6)		2,670		2,679			100		9			17			92		8		—		—		—		—
State and political subdivisions	2,621			(17)		2,665		2,659			100		(6)			—			87		10		—		—		2		1
Non-agency RMBS (d)	2,530			(7)		2,515		2,647			105		132			44			77		4		—		9		—		10
Other asset-backed securities	2,456			(5)		2,307		2,312			100		5			16			100		—		—		—		—		—
Corporate bonds	2,347			(17)		2,395		2,377			99		(18)			—			15		67		18		—		—		—

Other	1			—		1		1			100		—			—			—		—		—		—		—		100
Total securities	$	155,573	(e)	$	(355)	$	155,605	$	156,973	(e)(f)	101	%	$	1,368	(e)(g)	30	%		96	%	2	%	2	%	—	%	—	%	—	%
(a) Amortized cost reflects historical impairments, and is net of allowance for credit losses.
(b) Includes the impact of hedges.
(c) Represents ratings by S&P, or the equivalent.
(d) Includes RMBS that were included in the former Grantor Trust of $416 million at June 30, 2021 and $387 million at Sept. 30, 2021.
(e) Includes net unrealized losses on derivatives hedging securities available-for-sale (including terminated hedges) of $927 million at June 30, 2021 and $742 million at Sept. 30, 2021.
(f) The fair value of available-for-sale securities totaled $100,265 million at Sept. 30, 2021, net of hedges, or 64% of the fair value of the securities portfolio, net of hedges. The fair value of the held-to-maturity securities totaled $56,708 million at Sept. 30, 2021, or 36% of the fair value of the securities portfolio, net of hedges.
(g) At Sept. 30, 2021, unrealized gains of $927 million related to available-for-sale securities, net of hedges, and $441 million related to held-to-maturity securities.
Note: The amortizable purchase premium (net of discount) relating to securities was $2,005 million at Sept. 30, 2021 and the amortization of that net purchase premium was $157 million in 3Q21.


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

	2021						2020
(dollars in millions)	Sept. 30			June 30			March 31			Dec. 31			Sept. 30
Allowance for credit losses – beginning of period:
Allowance for loan losses	$	269		$	327		$	358		$	325		$	302
Allowance for lending-related commitments	50			73			121			135			152
Allowance for other financial instruments (a)	16			19			22			26			21
Allowance for credit losses – beginning of period	$	335		$	419		$	501		$	486		$	475

Net (charge-offs) recoveries:
Charge-offs	—			(1)			(1)			(1)			—
Recoveries	1			3			2			1			2
Total net recoveries	1			2			1			—			2
Provision for credit losses (b)	(45)			(86)			(83)			15			9
Allowance for credit losses - end of period	$	291		$	335		$	419		$	501		$	486

Allowance for credit losses – end of period:
Allowance for loan losses	$	233		$	269		$	327		$	358		$	325
Allowance for lending-related commitments	40			50			73			121			135
Allowance for other financial instruments (a)	18			16			19			22			26
Allowance for credit losses – end of period	$	291		$	335		$	419		$	501		$	486

Allowance for loan losses as a percentage of total loans	0.36		%	0.42		%	0.54		%	0.63		%	0.59		%

Nonperforming assets	$	108		$	90		$	112		$	89		$	84
(a) Includes allowance for credit losses on federal funds sold and securities purchased under resale agreements, available-for-sale securities, accounts receivable, cash and due from banks and interest-bearing deposits with banks.
(b) Includes all other instruments within the scope of ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments.


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, which exclude goodwill and intangible assets, net of deferred tax liabilities. We believe that the return on tangible common equity – Non-GAAP is additional useful information for investors because it presents a measure of those assets that can generate income, and the tangible book value per common share – Non-GAAP is additional useful information because it presents the level of tangible assets in relation to shares of common stock outstanding.

Net interest revenue, on a fully taxable equivalent ("FTE") basis – Non-GAAP and net interest margin (FTE) – Non-GAAP and other FTE measures 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 also included the adjusted pre-tax operating margin – Non-GAAP, which is the pre-tax operating margin for the Investment and Wealth Management business, net of distribution and servicing expense that was passed to third parties who distribute or service our managed funds. We believe that this measure is useful when evaluating the performance of the Investment and Wealth 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. We believe 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.

Return on common and tangible common equity ratios are annualized.


Return on common equity and tangible common equity reconciliation
(dollars in millions)	3Q21			2Q21			1Q21			4Q20			3Q20			YTD21			YTD20
Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP	$	881		$	991		$	858		$	702		$	876		$	2,730		$	2,721
Add: Amortization of intangible assets	19			20			24			26			26			63			78
Less: Tax impact of amortization of intangible assets	4			5			6			6			7			15			19
Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets – Non-GAAP	$	896		$	1,006		$	876		$	722		$	895		$	2,778		$	2,780

Average common shareholders’ equity	$	39,755		$	40,393		$	40,720		$	40,712		$	39,924		$	40,286		$	38,693
Less: Average goodwill	17,474			17,517			17,494			17,411			17,357			17,495			17,304
Average intangible assets	2,953			2,975			3,000			3,019			3,039			2,976			3,062
Add: Deferred tax liability – tax deductible goodwill	1,173			1,163			1,153			1,144			1,132			1,173			1,132
Deferred tax liability – intangible assets	673			675			665			667			666			673			666
Average tangible common shareholders’ equity – Non-GAAP	$	21,174		$	21,739		$	22,044		$	22,093		$	21,326		$	21,661		$	20,125

Return on common equity – GAAP	8.8		%	9.8		%	8.5		%	6.9		%	8.7		%	9.1		%	9.4		%
Return on tangible common equity – Non-GAAP	16.8		%	18.6		%	16.1		%	13.0		%	16.7		%	17.1		%	18.5		%


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	2021						2020
(dollars in millions, except common shares)	Sept. 30			June 30			March 31			Dec. 31			Sept. 30
BNY Mellon shareholders’ equity at period end – GAAP	$	43,601		$	45,281		$	44,954		$	45,801		$	44,917
Less: Preferred stock	4,541			4,541			4,541			4,541			4,532
BNY Mellon common shareholders’ equity at period end – GAAP	39,060			40,740			40,413			41,260			40,385
Less: Goodwill	17,420			17,487			17,469			17,496			17,357
Intangible assets	2,941			2,964			2,983			3,012			3,026
Add: Deferred tax liability – tax deductible goodwill	1,173			1,163			1,153			1,144			1,132
Deferred tax liability – intangible assets	673			675			665			667			666
BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP	$	20,545		$	22,127		$	21,779		$	22,563		$	21,800

Period-end common shares outstanding (in thousands)	825,821			863,174			875,481			886,764			886,136

Book value per common share – GAAP	$	47.30		$	47.20		$	46.16		$	46.53		$	45.58
Tangible book value per common share – Non-GAAP	$	24.88		$	25.64		$	24.88		$	25.44		$	24.60



Net interest margin reconciliation
(dollars in millions)	3Q21			2Q21			1Q21			4Q20			3Q20
Net interest revenue – GAAP	$	641		$	645		$	655		$	680		$	703
Add: Tax equivalent adjustment	3			3			3			3			2
Net interest revenue (FTE) – Non-GAAP	$	644		$	648		$	658		$	683		$	705

Average interest-earning assets	$	381,065		$	388,285		$	397,297		$	378,674		$	357,634

Net interest margin – GAAP (a)	0.67		%	0.67		%	0.66		%	0.72		%	0.79		%
Net interest margin (FTE) – Non-GAAP (a)	0.68		%	0.67		%	0.67		%	0.72		%	0.79		%
(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 and Wealth Management business
(dollars in millions)	3Q21			2Q21			1Q21			4Q20			3Q20			YTD21			YTD20
Income before income taxes – GAAP	$	348		$	326		$	278		$	311		$	245		$	952		$	660

Total revenue – GAAP	$	1,032		$	999		$	991		$	990		$	918		$	3,022		$	2,702
Less: Distribution and servicing expense	76			74			75			76			85			225			262
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP	$	956		$	925		$	916		$	914		$	833		$	2,797		$	2,440

Pre-tax operating margin – GAAP (a)	34		%	33		%	28		%	32		%	27		%	31		%	24		%
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a)	36		%	35		%	30		%	34		%	29		%	34		%	27		%
(a) Income before income taxes divided by total revenue.



Constant currency reconciliations							3Q21 vs.
(dollars in millions)	3Q21			3Q20			3Q20
Consolidated:
Investment management and performance fees – GAAP	$	913		$	835		9		%
Impact of changes in foreign currency exchange rates	—			15
Adjusted investment management and performance fees – Non-GAAP	$	913		$	850		7		%


Investment and Wealth Management business:
Investment management and performance fees – GAAP	$	914		$	835		9		%
Impact of changes in foreign currency exchange rates	—			15
Adjusted investment management and performance fees – Non-GAAP	$	914		$	850		8		%