Document


The Bank of New York Mellon Corporation

Financial Supplement

First Quarter 2023


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
Securities Services Business Segment						9
Market and Wealth Services Business Segment						11
Investment and Wealth Management Business Segment						13
AUM by Product Type, Changes in AUM and Wealth Management Client Assets						14
Other Segment						15

Other
Securities Portfolio						16
Allowance for Credit Losses and Nonperforming Assets						17

Supplemental Information
Explanation of GAAP and Non-GAAP Financial Measures						18


THE BANK OF NEW YORK MELLON CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(dollars in millions, except per common share amounts, or unless otherwise noted)																1Q23 vs.
	1Q23			4Q22			3Q22			2Q22			1Q22			4Q22		1Q22
Selected income statement data


Fee and other revenue	$	3,235		$	2,862		$	3,353		$	3,430		$	3,228		13	%	—	%
Net interest revenue	1,128			1,056			926			824			698			7		62
Total revenue	4,363			3,918			4,279			4,254			3,926			11		11
Provision for credit losses	27			20			(30)			47			2			N/M		N/M
Noninterest expense	3,100			3,213			3,679			3,112			3,006			(4)		3
Income before income taxes	1,236			685			630			1,095			918			80		35
Provision for income taxes	260			142			242			231			153			83		70
Net income	$	976		$	543		$	388		$	864		$	765		80	%	28	%
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	905		$	509		$	319		$	835		$	699		78	%	29	%
Diluted earnings per common share	$	1.12		$	0.62		$	0.39		$	1.03		$	0.86		81	%	30	%
Average common shares and equivalents outstanding – diluted (in thousands)	807,718			815,846			814,516			813,590			813,986			(1)	%	(1)	%

Financial ratios (Returns are annualized)
Pre-tax operating margin	28		%	17		%	15		%	26		%	23		%
Return on common equity	10.3		%	5.7		%	3.5		%	9.3		%	7.6		%
Return on tangible common equity – Non-GAAP (a)	20.2		%	11.5		%	7.5		%	19.2		%	15.4		%
Non-U.S. revenue as a percentage of total revenue	35		%	39		%	35		%	36		%	35		%

Period end
Assets under custody and/or administration (“AUC/A”) (in trillions) (b)	$	46.6		$	44.3		$	42.2		$	43.0		$	45.5		5	%	2	%
Assets under management (“AUM”) (in trillions)	$	1.91		$	1.84		$	1.78		$	1.94		$	2.27		4	%	(16)	%
Full-time employees	51,600			51,700			51,100			50,800			49,600			—	%	4	%
Book value per common share	$	45.36		$	44.40		$	43.18		$	44.73		$	45.76
Tangible book value per common share – Non-GAAP (a)	$	23.52		$	23.11		$	21.55		$	22.02		$	22.76
Cash dividends per common share	$	0.37		$	0.37		$	0.37		$	0.34		$	0.34
Common dividend payout ratio	34		%	60		%	95		%	33		%	40		%
Closing stock price per common share	$	45.44		$	45.52		$	38.52		$	41.71		$	49.63
Market capitalization	$	35,858		$	36,800		$	31,135		$	33,706		$	40,091
Common shares outstanding (in thousands)	789,134			808,445			808,280			808,103			807,798

Capital ratios at period end (c)
Common Equity Tier 1 ("CET1") ratio	11.0		%	11.2		%	10.0		%	10.0		%	10.1		%
Tier 1 capital ratio	13.9		%	14.1		%	12.8		%	12.8		%	12.9		%
Total capital ratio	14.7		%	14.9		%	13.7		%	13.6		%	13.7		%
Tier 1 leverage ratio	5.8		%	5.8		%	5.4		%	5.2		%	5.3		%
Supplementary leverage ratio ("SLR")	6.9		%	6.8		%	6.3		%	6.2		%	6.2		%
(a) Non-GAAP information, for all periods presented, excludes goodwill and intangible assets, net of deferred tax liabilities. See "Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 18 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 $1.5 trillion at March 31, 2023 and Dec. 31, 2022, $1.4 trillion at Sep. 30, 2022, $1.5 trillion at June 30, 2022 and $1.7 trillion at March 31, 2022.
(c) Regulatory capital ratios for March 31, 2023 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 March 31, 2023 and Dec. 31, 2022 was the Advanced Approaches, for Sept. 30, 2022 was the Standardized Approach for the CET1 and Tier 1 capital ratios and the Advanced Approaches for the Total capital ratio, for June 30, 2022 was the Advanced Approaches, and for March 31, 2022 was the Standardized Approach.
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)											1Q23 vs.
	1Q23		4Q22		3Q22		2Q22		1Q22		4Q22		1Q22
Revenue
Investment services fees	$	2,119	$	2,173	$	2,157	$	2,206	$	1,993	(2)	%	6	%
Investment management and performance fees	776		783		800		833		883		(1)		(12)
Foreign exchange revenue	176		190		203		222		207		(7)		(15)
Financing-related fees	52		43		43		44		45		21		16
Distribution and servicing fees	33		33		33		34		30		—		10
Total fee revenue	3,156		3,222		3,236		3,339		3,158		(2)		—
Investment and other revenue	79		(360)		117		91		70		N/M		N/M
Total fee and other revenue	3,235		2,862		3,353		3,430		3,228		13		—
Net interest revenue	1,128		1,056		926		824		698		7		62
Total revenue	4,363		3,918		4,279		4,254		3,926		11		11
Provision for credit losses	27		20		(30)		47		2		N/M		N/M
Noninterest expense
Staff	1,791		1,802		1,673		1,623		1,702		(1)		5
Software and equipment	429		432		421		405		399		(1)		8
Professional, legal and other purchased services	375		415		363		379		370		(10)		1
Net occupancy	119		143		124		125		122		(17)		(2)
Sub-custodian and clearing	118		112		124		131		118		5		—
Distribution and servicing	85		86		88		90		79		(1)		8
Bank assessment charges	40		19		35		37		35		111		14
Business development	39		45		34		43		30		(13)		30
Goodwill impairment	—		—		680		—		—		N/M		N/M
Amortization of intangible assets	14		16		17		17		17		(13)		(18)
Other	90		143		120		262		134		(37)		(33)
Total noninterest expense	3,100		3,213		3,679		3,112		3,006		(4)		3
Income before income taxes	1,236		685		630		1,095		918		80		35
Provision for income taxes	260		142		242		231		153		83		70
Net income	976		543		388		864		765		80		28
Net loss attributable to noncontrolling interests	—		—		—		5		8		N/M		N/M
Preferred stock dividends	(71)		(34)		(69)		(34)		(74)		N/M		N/M
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	905	$	509	$	319	$	835	$	699	78	%	29	%

Average common shares and equivalents outstanding: Basic	803,340		811,669		811,304		810,903		809,469		(1)	%	(1)	%
Diluted	807,718		815,846		814,516		813,590		813,986		(1)	%	(1)	%

Earnings per common share: Basic	$	1.13	$	0.63	$	0.39	$	1.03	$	0.86	79	%	31	%
Diluted	$	1.12	$	0.62	$	0.39	$	1.03	$	0.86	81	%	30	%
N/M – Not meaningful.


THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET

	2023		2022
(in millions)	March 31		Dec. 31		Sept. 30		June 30		March 31
Assets
Cash and due from banks	$	5,564	$	5,030	$	4,707	$	5,185	$	6,143
Interest-bearing deposits with the Federal Reserve and other central banks	117,042		91,655		107,427		125,372		135,691
Interest-bearing deposits with banks	15,114		17,169		13,890		16,639		18,268
Federal funds sold and securities purchased under resale agreements	26,894		24,298		23,483		22,940		27,131
Securities	138,678		142,816		144,181		150,844		153,396
Trading assets	9,024		9,908		12,650		10,759		14,703
Loans	62,323		66,063		69,829		69,347		68,052
Allowance for loan losses	(170)		(176)		(164)		(181)		(171)
Net loans	62,153		65,887		69,665		69,166		67,881
Premises and equipment	3,248		3,256		3,311		3,354		3,359
Accrued interest receivable	978		858		723		548		467
Goodwill	16,192		16,150		16,412		17,271		17,462
Intangible assets	2,890		2,901		2,902		2,934		2,968
Other assets	27,335		25,855		28,602		27,609		26,342
Total assets	$	425,112	$	405,783	$	427,953	$	452,621	$	473,811
Liabilities
Deposits	$	281,294	$	278,970	$	301,989	$	325,813	$	345,565
Federal funds purchased and securities sold under repurchase agreements	26,540		12,335		11,339		11,434		13,181
Trading liabilities	5,705		5,385		7,494		5,595		5,587
Payables to customers and broker-dealers	22,598		23,435		23,741		25,769		26,608

Other borrowed funds	2,538		397		357		520		312
Accrued taxes and other expenses	4,732		5,410		5,316		5,011		4,534
Other liabilities	10,414		8,543		10,001		9,724		10,626
Long-term debt	30,489		30,458		27,820		27,610		25,246
Total liabilities	384,310		364,933		388,057		411,476		431,659
Temporary equity
Redeemable noncontrolling interests	96		109		152		154		155
Permanent equity
Preferred stock	4,838		4,838		4,838		4,838		4,838
Common stock	14		14		14		14		14
Additional paid-in capital	28,650		28,508		28,374		28,316		28,258
Retained earnings	38,465		37,864		37,660		37,644		37,088
Accumulated other comprehensive loss, net of tax	(5,543)		(5,966)		(6,627)		(5,307)		(3,881)
Less: Treasury stock, at cost	(25,790)		(24,524)		(24,522)		(24,521)		(24,518)
Total The Bank of New York Mellon Corporation shareholders’ equity	40,634		40,734		39,737		40,984		41,799
Nonredeemable noncontrolling interests of consolidated investment management funds	72		7		7		7		198
Total permanent equity	40,706		40,741		39,744		40,991		41,997
Total liabilities, temporary equity and permanent equity	$	425,112	$	405,783	$	427,953	$	452,621	$	473,811


THE BANK OF NEW YORK MELLON CORPORATION
FEE AND OTHER REVENUE

											1Q23 vs.
(dollars in millions)	1Q23		4Q22		3Q22		2Q22		1Q22		4Q22		1Q22
Investment services fees	$	2,119	$	2,173	$	2,157	$	2,206	$	1,993	(2)	%	6	%
Investment management and performance fees:
Investment management fees (a)	754		757		790		828		849		—		(11)
Performance fees	22		26		10		5		34		N/M		(35)
Total investment management and performance fees (b)	776		783		800		833		883		(1)		(12)
Foreign exchange revenue	176		190		203		222		207		(7)		(15)
Financing-related fees	52		43		43		44		45		21		16
Distribution and servicing fees	33		33		33		34		30		—		10
Total fee revenue	3,156		3,222		3,236		3,339		3,158		(2)		—
Investment and other revenue:
Income (loss) from consolidated investment management funds	5		9		(7)		(24)		(20)		N/M		N/M
Seed capital gains (losses) (c)	8		6		(11)		(24)		(8)		N/M		N/M
Other trading revenue	45		34		65		45		5		N/M		N/M
Renewable energy investment (losses)	(32)		(32)		(44)		(44)		(44)		N/M		N/M
Corporate/bank-owned life insurance	27		35		32		28		33		N/M		N/M
Other investments (losses) gains (d)	(9)		7		13		78		61		N/M		N/M
Disposal (losses) gains	(1)		(11)		37		—		—		N/M		N/M
Expense reimbursements from joint venture	29		28		27		26		27		N/M		N/M
Other income	8		12		4		6		12		N/M		N/M
Net securities (losses) gains	(1)		(448)		1		—		4		N/M		N/M
Total investment and other revenue	79		(360)		117		91		70		N/M		N/M
Total fee and other revenue	$	3,235	$	2,862	$	3,353	$	3,430	$	3,228	13	%	—	%
(a) Excludes seed capital gains (losses) related to consolidated investment management funds.
(b) On a constant currency basis (Non-GAAP), investment management and performance fees decreased 9% compared with 1Q22. See "Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 18 for the reconciliation of this Non-GAAP measure.
(c) Includes gains (losses) on investments in BNY Mellon funds which hedge deferred incentive awards.
(d) Includes strategic equity, private equity and other investments.
N/M – Not meaningful.


THE BANK OF NEW YORK MELLON CORPORATION
AVERAGE BALANCES AND INTEREST RATES
	1Q23				4Q22				3Q22				2Q22				1Q22
	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	$	94,899	3.59	%	$	94,868	2.60	%	$	91,836	1.23	%	$	102,844	0.38	%	$	100,303	0.01	%
Interest-bearing deposits with banks	16,225		3.51		15,750		2.70		16,298		1.62		18,097		0.74		17,181		0.33
Federal funds sold and securities purchased under resale agreements (a)	24,631		16.32		25,657		11.22		22,971		5.55		24,212		1.91		27,006		0.56
Loans	63,261		5.54		67,364		4.65		68,082		3.39		69,036		2.15		66,810		1.57
Securities:
U.S. government obligations	38,852		2.89		39,382		2.46		40,829		1.75		41,267		1.07		40,868		0.74
U.S. government agency obligations	62,280		2.60		61,426		2.30		62,819		1.91		64,939		1.59		67,055		1.46
State and political subdivisions (b)	23		7.07		1,178		2.77		1,982		2.39		2,065		2.13		2,337		2.16
Other securities (b)	42,429		3.21		41,732		2.66		42,642		1.90		43,635		1.31		45,541		1.02
Total investment securities (b)	143,584		2.86		143,718		2.45		148,272		1.87		151,906		1.37		155,801		1.15
Trading securities (b)	5,778		4.97		5,630		4.51		4,603		3.06		4,687		1.91		6,085		1.43
Total securities (b)	149,362		2.94		149,348		2.53		152,875		1.91		156,593		1.39		161,886		1.16
Total interest-earning assets (b)	$	348,378	4.56	%	$	352,987	3.59	%	$	352,062	2.24	%	$	370,782	1.25	%	$	373,186	0.84	%
Noninterest-earning assets	59,123				61,532				63,608				66,841				67,016
Total assets	$	407,501			$	414,519			$	415,670			$	437,623			$	440,202

Liabilities and equity
Interest-bearing liabilities:
Interest-bearing deposits	$	204,114	2.71	%	$	207,875	2.00	%	$	203,659	0.95	%	$	219,124	0.16	%	$	223,243	(0.07)	%
Federal funds purchased and securities sold under repurchase agreements (a)	18,316		19.75		13,985		16.88		12,297		8.05		12,610		2.47		12,864		0.36
Trading liabilities	3,025		4.05		3,572		3.45		3,550		2.52		3,231		1.25		3,372		0.53
Other borrowed funds	711		1.75		619		1.69		504		1.15		437		2.14		458		2.36
Commercial paper	—		—		6		3.87		5		2.34		5		1.61		4		0.09
Payables to customers and broker-dealers	16,954		3.08		17,147		2.27		18,030		1.07		16,592		0.21		16,661		0.01
Long-term debt	30,246		5.22		29,508		4.90		28,449		3.43		26,195		2.22		25,588		1.53
Total interest-bearing liabilities	$	273,366	4.17	%	$	272,712	3.11	%	$	266,494	1.57	%	$	278,194	0.48	%	$	282,190	0.11	%
Total noninterest-bearing deposits	69,886				75,862				84,804				91,893				90,179
Other noninterest-bearing liabilities	23,789				25,810				23,547				26,354				25,419
Total The Bank of New York Mellon Corporation shareholders’ equity	40,442				40,097				40,780				41,037				42,201
Noncontrolling interests	18				38				45				145				213
Total liabilities and equity	$	407,501			$	414,519			$	415,670			$	437,623			$	440,202
Net interest margin			1.29	%			1.19	%			1.05	%			0.89	%			0.75	%
Net interest margin (FTE) – Non-GAAP (c)			1.29	%			1.19	%			1.05	%			0.89	%			0.76	%
(a) Includes the average impact of offsetting under enforceable netting agreements of approximately $62 billion for 1Q23, $51 billion for 4Q22, $35 billion for 3Q22, $33 billion for 2Q22 and $53 billion for 1Q22. 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 4.62% for 1Q23, 3.76% for 4Q22, 2.21% for 3Q22, 0.80% for 2Q22 and 0.19% for 1Q22. 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 4.49% for 1Q23, 3.63% for 4Q22, 2.11% for 3Q22, 0.68% for 2Q22 and 0.07% for 1Q22. 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) Average rates were calculated on an FTE basis, at tax rates of approximately 21%.
(c) See "Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 18 for the reconciliation of this Non-GAAP measure.


THE BANK OF NEW YORK MELLON CORPORATION
CAPITAL AND LIQUIDITY

	2023			2022
(dollars in millions)	March 31			Dec. 31			Sept. 30			June 30			March 31
Consolidated regulatory capital ratios (a)
Standardized Approach:
CET1 capital	$	17,876		$	18,032		$	16,726		$	17,067		$	17,579
Tier 1 capital	22,710			22,856			21,495			21,824			22,335
Total capital	24,277			24,384			23,008			23,366			23,835
Risk-weighted assets	157,470			159,096			167,457			169,710			173,629

CET1 ratio	11.4		%	11.3		%	10.0		%	10.1		%	10.1		%
Tier 1 capital ratio	14.4			14.4			12.8			12.9			12.9
Total capital ratio	15.4			15.3			13.7			13.8			13.7

Advanced Approaches:
CET1 capital	$	17,876		$	18,032		$	16,726		$	17,067		$	17,579
Tier 1 capital	22,710			22,856			21,495			21,824			22,335
Total capital	23,996			24,143			22,762			23,112			23,582
Risk-weighted assets	162,992			161,672			165,893			169,919			169,091

CET1 ratio	11.0		%	11.2		%	10.1		%	10.0		%	10.4		%
Tier 1 capital ratio	13.9			14.1			13.0			12.8			13.2
Total capital ratio	14.7			14.9			13.7			13.6			13.9

Tier 1 leverage ratio:
Average assets for Tier 1 leverage ratio	$	389,581		$	396,643		$	397,428		$	418,467		$	420,778
Tier 1 leverage ratio	5.8		%	5.8		%	5.4		%	5.2		%	5.3		%

SLR:
Leverage exposure	$	330,636		$	336,049		$	340,055		$	351,552		$	361,464
SLR	6.9		%	6.8		%	6.3		%	6.2		%	6.2		%

Average liquidity coverage ratio	118		%	118		%	116		%	111		%	109		%
(a) Regulatory capital ratios for March 31, 2023 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 March 31, 2023 and Dec. 31, 2022 was the Advanced Approaches, for Sept. 30, 2022 was the Standardized Approach for the CET1 and Tier 1 capital ratios and the Advanced Approaches for the Total capital ratio, for June 30, 2022 was the Advanced Approaches, and for March 31, 2022 was the Standardized Approach.


THE BANK OF NEW YORK MELLON CORPORATION
SECURITIES SERVICES BUSINESS SEGMENT

																1Q23 vs.
(dollars in millions)	1Q23			4Q22			3Q22			2Q22			1Q22			4Q22		1Q22
Revenue:
Investment services fees:
Asset Servicing	$	948		$	971		$	953		$	995		$	999		(2)	%	(5)	%
Issuer Services	236			271			288			309			141			(13)		67
Total investment services fees	1,184			1,242			1,241			1,304			1,140			(5)		4
Foreign exchange revenue	139			149			132			155			148			(7)		(6)
Other fees (a)	55			55			52			54			41			—		34
Total fee revenue	1,378			1,446			1,425			1,513			1,329			(5)		4
Investment and other revenue	72			70			111			36			74			N/M		N/M
Total fee and other revenue	1,450			1,516			1,536			1,549			1,403			(4)		3
Net interest revenue	666			656			538			457			377			2		77
Total revenue	2,116			2,172			2,074			2,006			1,780			(3)		19
Provision for credit losses	—			11			(6)			13			(10)			N/M		N/M
Noninterest expense (ex. amortization of intangible assets)	1,548			1,568			1,549			1,647			1,502			(1)		3
Amortization of intangible assets	8			8			8			9			8			—		—
Total noninterest expense	1,556			1,576			1,557			1,656			1,510			(1)		3
Income before income taxes	$	560		$	585		$	523		$	337		$	280		(4)	%	100	%


Total revenue by line of business:
Asset Servicing	$	1,664		$	1,681		$	1,596		$	1,534		$	1,512		(1)	%	10	%
Issuer Services	452			491			478			472			268			(8)		69
Total revenue by line of business	$	2,116		$	2,172		$	2,074		$	2,006		$	1,780		(3)	%	19	%

Financial ratios:
Pre-tax operating margin	26		%	27		%	25		%	17		%	16		%

Memo: Securities lending revenue (b)	$	48		$	50		$	48		$	45		$	39		(4)	%	23	%
(a) Other fees primarily include financing-related fees.
(b) Included in investment services fees reported in the Asset Servicing line of business.
N/M – Not meaningful.


THE BANK OF NEW YORK MELLON CORPORATION
SECURITIES SERVICES BUSINESS SEGMENT

											1Q23 vs.
(dollars in millions, unless otherwise noted)	1Q23		4Q22		3Q22		2Q22		1Q22		4Q22		1Q22
Selected balance sheet data:
Average loans	$	10,939	$	11,850	$	11,573	$	11,386	$	10,150	(8)	%	8	%
Average assets (a)	$	196,560	$	206,810	$	203,063	$	219,797	$	220,889	(5)	%	(11)	%
Average deposits	$	167,209	$	176,541	$	176,328	$	191,191	$	192,156	(5)	%	(13)	%

Selected metrics:
AUC/A at period end (in trillions) (b)(c)	$	32.6	$	31.4	$	30.0	$	31.0	$	33.7	4	%	(3)	%
Market value of securities on loan at period end (in billions) (d)	$	441	$	449	$	435	$	441	$	449	(2)	%	(2)	%
(a) In business segments where average deposits are greater than average loans, average assets include an allocation of investment securities equal to the difference.
(b) March 31, 2023 information is preliminary.
(c) Consists of AUC/A primarily from the Asset Servicing line of business and, to a lesser extent, the Issuer Services line of business. Includes the AUC/A of CIBC Mellon of $1.5 trillion at March 31, 2023 and Dec. 31, 2022, $1.4 trillion at Sept. 30, 2022, $1.5 trillion at June 30, 2022 and $1.7 trillion at March 31, 2022.
(d) Represents the total amount of securities on loan in our agency securities lending program. Excludes securities for which BNY Mellon acts as agent on behalf of CIBC Mellon clients, which totaled $69 billion at March 31, 2023, $68 billion at Dec. 31, 2022, $75 billion at Sept. 30, 2022, $70 billion at June 30, 2022 and $78 billion at March 31, 2022.


THE BANK OF NEW YORK MELLON CORPORATION
MARKET AND WEALTH SERVICES BUSINESS SEGMENT

																1Q23 vs.
(dollars in millions)	1Q23			4Q22			3Q22			2Q22			1Q22			4Q22		1Q22
Revenue:
Investment services fees:
Pershing	$	499		$	502		$	494		$	479		$	433		(1)	%	15	%
Treasury Services	168			170			173			176			170			(1)		(1)
Clearance and Collateral Management	260			249			239			240			243			4		7
Total investment services fees	927			921			906			895			846			1		10
Foreign exchange revenue	18			20			20			22			26			(10)		(31)
Other fees (a)	54			47			49			46			34			15		59
Total fee revenue	999			988			975			963			906			1		10
Investment and other revenue	15			15			14			11			—			N/M		N/M
Total fee and other revenue	1,014			1,003			989			974			906			1		12
Net interest revenue	453			396			378			340			296			14		53
Total revenue	1,467			1,399			1,367			1,314			1,202			5		22
Provision for credit losses	—			6			(1)			4			(2)			N/M		N/M
Noninterest expense (ex. amortization of intangible assets)	768			783			735			700			706			(2)		9
Amortization of intangible assets	1			2			2			2			2			(50)		(50)
Total noninterest expense	769			785			737			702			708			(2)		9
Income before income taxes	$	698		$	608		$	631		$	608		$	496		15	%	41	%


Total revenue by line of business:
Pershing	$	693		$	673		$	658		$	636		$	570		3	%	22	%
Treasury Services	412			382			390			373			338			8		22
Clearance and Collateral Management	362			344			319			305			294			5		23
Total revenue by line of business	$	1,467		$	1,399		$	1,367		$	1,314		$	1,202		5	%	22	%


Financial ratios:
Pre-tax operating margin	48		%	43		%	46		%	46		%	41		%
(a) Other fees primarily include financing-related fees.
N/M – Not meaningful.


THE BANK OF NEW YORK MELLON CORPORATION
MARKET AND WEALTH SERVICES BUSINESS SEGMENT

											1Q23 vs.
(dollars in millions, unless otherwise noted)	1Q23		4Q22		3Q22		2Q22		1Q22		4Q22		1Q22
Selected balance sheet data:
Average loans	$	36,854	$	39,843	$	40,882	$	42,391	$	42,113	(8)	%	(12)	%
Average assets (a)	$	132,143	$	132,306	$	138,204	$	141,952	$	141,183	—	%	(6)	%
Average deposits	$	86,040	$	86,083	$	90,612	$	94,716	$	95,704	—	%	(10)	%

Selected metrics:
AUC/A at period end (in trillions) (b)(c)	$	13.7	$	12.7	$	12.0	$	11.8	$	11.6	8	%	18	%

Pershing
AUC/A at period end (in trillions) (b)	$	2.4	$	2.3	$	2.1	$	2.2	$	2.5	4	%	(4)	%
Net new assets (U.S. platform) (in billions) (d)	$	37	$	42	$	45	$	16	$	18	N/M		N/M
Average active clearing accounts (in thousands)	7,849		7,603		7,466		7,432		7,432		3	%	6	%

Treasury Services
Average daily U.S. dollar payment volumes	236,322		246,189		234,468		237,763		240,403		(4)	%	(2)	%

Clearance and Collateral Management
Average tri-party collateral management balances (in billions)	$	5,626	$	5,451	$	5,457	$	5,207	$	5,026	3	%	12	%
(a) In business segments where average deposits are greater than average loans, average assets include an allocation of investment securities equal to the difference.
(b) March 31, 2023 information is preliminary.
(c) Consists of AUC/A from the Clearance and Collateral Management and Pershing lines of business.
(d) Net new assets represent net flows of assets (e.g., net cash deposits and net securities transfers, including dividends and interest) 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 SEGMENT

																1Q23 vs.
(dollars in millions)	1Q23			4Q22			3Q22			2Q22			1Q22			4Q22		1Q22
Revenue:
Investment management fees	$	752		$	754		$	788		$	825		$	848		—	%	(11)	%
Performance fees	22			26			10			5			34			N/M		(35)
Investment management and performance fees (a)	774			780			798			830			882			(1)		(12)
Distribution and servicing fees	55			54			55			51			32			2		72
Other fees (b)	(53)			(58)			(45)			(31)			1			N/M		N/M
Total fee revenue	776			776			808			850			915			—		(15)
Investment and other revenue (c)	6			(3)			(3)			(13)			(8)			N/M		N/M
Total fee and other revenue (c)	782			773			805			837			907			1		(14)
Net interest revenue	45			52			57			62			57			(13)		(21)
Total revenue	827			825			862			899			964			—		(14)
Provision for credit losses	—			1			3			—			(3)			N/M		N/M
Noninterest expense (ex. goodwill impairment and amortization of intangible assets)	729			693			669			685			748			5		(3)
Goodwill impairment	—			—			680			—			—			N/M		N/M
Amortization of intangible assets	5			6			7			6			7			(17)		(29)
Total noninterest expense	734			699			1,356			691			755			5		(3)
Income (loss) before income taxes	$	93		$	125		$	(497)		$	208		$	212		(26)	%	(56)	%


Total revenue by line of business:
Investment Management	$	557		$	550		$	579		$	603		$	658		1	%	(15)	%
Wealth Management	270			275			283			296			306			(2)		(12)
Total revenue by line of business	$	827		$	825		$	862		$	899		$	964		—	%	(14)	%

Financial ratios:
Pre-tax operating margin	11		%	15		%	(57)		%	23		%	22		%
Adjusted pre-tax operating margin – Non-GAAP (d)	13		%	17		%	(64)		%	26		%	24		%

Selected balance sheet data:
Average loans	$	13,960		$	14,404		$	14,482		$	14,087		$	13,228		(3)	%	6	%
Average assets (e)	$	28,232		$	28,488		$	29,996		$	33,668		$	35,629		(1)	%	(21)	%
Average deposits	$	16,144		$	16,416		$	17,225		$	20,802		$	22,501		(2)	%	(28)	%
(a) On a constant currency basis, investment management and performance fees decreased 9% (Non-GAAP) compared with 1Q22. See "Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 18 for the reconciliation of this Non-GAAP measure.
(b) Other fees primarily include investment services fees.
(c) Investment and other revenue and total fee and other revenue are net of income (loss) attributable to noncontrolling interests related to consolidated investment management funds.
(d) Net of distribution and servicing expense. See "Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 18 for the reconciliation of this Non-GAAP measure.
(e) In business segments where average deposits are greater than average loans, average assets include an allocation of investment securities equal to the difference.
N/M – Not meaningful.


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

											1Q23 vs.
(dollars in billions)	1Q23		4Q22		3Q22		2Q22		1Q22		4Q22		1Q22
AUM by product type (a)(b):
Equity	$	142	$	135	$	125	$	139	$	168	5	%	(15)	%
Fixed income	207		198		205		226		248		5		(17)
Index	408		395		366		387		440		3		(7)
Liability-driven investments	604		570		546		641		812		6		(26)
Multi-asset and alternative investments	161		153		181		188		215		5		(25)
Cash	386		385		353		356		383		—		1
Total AUM	$	1,908	$	1,836	$	1,776	$	1,937	$	2,266	4	%	(16)	%

Changes in AUM (a)(b):
Beginning balance of AUM	$	1,836	$	1,776	$	1,937	$	2,266	$	2,434
Net inflows (outflows):
Long-term strategies:
Equity	(4)		(5)		(5)		(4)		(4)
Fixed income	4		(12)		(3)		(1)		(5)
Liability-driven investments	10		19		30		12		17
Multi-asset and alternative investments	(3)		(4)		2		(5)		(4)
Total long-term active strategies inflows (outflows)	7		(2)		24		2		4
Index	(2)		(4)		(1)		12		(5)
Total long-term strategies inflows (outflows)	5		(6)		23		14		(1)
Short-term strategies:
Cash	—		27		(2)		(26)		(11)
Total net inflows (outflows)	5		21		21		(12)		(12)
Net market impact	52		18		(118)		(241)		(130)
Net currency impact	15		53		(64)		(76)		(26)
Divestiture	—		(32)		—		—		—
Ending balance of AUM	$	1,908	$	1,836	$	1,776	$	1,937	$	2,266	4	%	(16)	%

Wealth Management client assets (a)(c)	$	279	$	269	$	256	$	264	$	305	4	%	(9)	%
(a) March 31, 2023 information is preliminary.
(b) Excludes assets managed outside of the Investment and Wealth Management business segment.
(c) Includes AUM and AUC/A in the Wealth Management line of business.


THE BANK OF NEW YORK MELLON CORPORATION
OTHER SEGMENT

(in millions)	1Q23		4Q22		3Q22		2Q22		1Q22
Revenue:
Fee revenue	$	3	$	12	$	28	$	13	$	8
Investment and other revenue	(14)		(442)		(5)		62		12
Total fee and other revenue	(11)		(430)		23		75		20
Net interest (expense)	(36)		(48)		(47)		(35)		(32)
Total revenue	(47)		(478)		(24)		40		(12)
Provision for credit losses	27		2		(26)		30		17
Noninterest expense	41		153		29		63		33
(Loss) before income taxes	$	(115)	$	(633)	$	(27)	$	(53)	$	(62)


Selected balance sheet data:
Average loans and leases	$	1,508	$	1,267	$	1,145	$	1,172	$	1,319
Average assets	$	50,566	$	46,915	$	44,407	$	42,206	$	42,501


THE BANK OF NEW YORK MELLON CORPORATION
SECURITIES PORTFOLIO

(dollars in millions)	Dec. 31, 2022			1Q23 change in unrealized gain (loss)		March 31, 2023					Fair value as a % of amortized cost (a)		Unrealized gain (loss)			% Floating rate (b)		Ratings (c)
						Amortized cost (a)		Fair value										AAA/ AA-		A+/ A-		BBB+/ BBB-		BB+ and lower		Not rated
	Fair value
Agency RMBS	$	38,916		$	488	$	43,691	$	39,519		90	%	$	(4,172)		16	%	100	%	—	%	—	%	—	%	—	%
U.S. Treasury	41,503			306		36,662		35,505			97		(1,157)			49		100		—		—		—		—
Agency commercial MBS	11,864			101		12,529		11,824			94		(705)			42		100		—		—		—		—
Sovereign debt/sovereign guaranteed	11,756			59		12,262		11,783			96		(479)			24		90		5		4		1		—
Supranational	8,298			34		8,835		8,595			97		(240)			62		100		—		—		—		—
CLOs	6,300			13		6,780		6,664			98		(116)			100		100		—		—		—		—
U.S. government agencies	6,115			62		7,149		6,655			93		(494)			41		100		—		—		—		—
Foreign covered bonds	5,776			22		6,234		5,991			96		(243)			56		100		—		—		—		—
Non-agency commercial MBS	3,054			(9)		3,358		3,069			91		(289)			54		100		—		—		—		—
Foreign government agencies	2,307			16		2,521		2,415			96		(106)			33		94		6		—		—		—
Non-agency RMBS	2,060			7		2,146		1,986			93		(160)			49		86		3		—		6		5
Other asset-backed securities	1,319			17		1,252		1,145			91		(107)			14		100		—		—		—		—
State and political subdivisions	23			—		13		11			88		(2)			—		1		2		3		—		94

Other	1			—		1		1			100		—			—		—		—		—		—		100
Total securities	$	139,292	(d)	$	1,116	$	143,433	$	135,163	(d)(e)	94	%	$	(8,270)	(d)(f)	39	%	99	%	1	%	—	%	—	%	—	%
(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 net unrealized gains on derivatives hedging securities available-for-sale (including terminated hedges) of $2,678 million at Dec. 31, 2022 and $1,979 million at March 31, 2023.
(e) The fair value of available-for-sale securities totaled $86,096 million at March 31, 2023, 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 $49,067 million at March 31, 2023, or 36% of the fair value of the securities portfolio, net of hedges.
(f) At March 31, 2023, pre-tax net unrealized losses of $2,776 million related to available-for-sale securities, net of hedges, and $5,494 million related to held-to-maturity securities. The after-tax unrealized losses, net of hedges, related to available-for-sale securities is $2,094 million and the after-tax equivalent related to held-to-maturity securities is $4,189 million.
Note: The amortizable purchase premium (net of discount) relating to securities was $1,096 million at March 31, 2023 and the amortization of that net purchase premium was $42 million in 1Q23.


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

	2023			2022
(dollars in millions)	March 31			Dec. 31			Sept. 30			June 30			March 31
Allowance for credit losses – beginning of period:
Allowance for loan losses	$	176		$	164		$	181		$	171		$	196
Allowance for lending-related commitments	78			72			62			53			45
Allowance for other financial instruments (a)	38			44			67			39			19
Allowance for credit losses – beginning of period	$	292		$	280		$	310		$	263		$	260

Net (charge-offs) recoveries:
Charge-offs	—			(9)			(1)			(1)			—
Recoveries	1			1			1			1			1
Total net (charge-offs) recoveries	1			(8)			—			—			1
Provision for credit losses (b)	27			20			(30)			47			2
Allowance for credit losses – end of period	$	320		$	292		$	280		$	310		$	263

Allowance for credit losses – end of period:
Allowance for loan losses	$	170		$	176		$	164		$	181		$	171
Allowance for lending-related commitments	83			78			72			62			53
Allowance for other financial instruments (a)	67			38			44			67			39
Allowance for credit losses – end of period	$	320		$	292		$	280		$	310		$	263

Allowance for loan losses as a percentage of total loans	0.27		%	0.27		%	0.23		%	0.26		%	0.25		%

Nonperforming assets	$	105		$	109		$	107		$	114		$	119
(a) Includes allowance for credit losses on federal funds sold and securities purchased under resale agreements, available-for-sale securities, held-to-maturity 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
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 segment, 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 segment 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:


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



Return on common equity and tangible common equity reconciliation
(dollars in millions)	1Q23			4Q22			3Q22			2Q22			1Q22
Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP	$	905		$	509		$	319		$	835		$	699
Add: Amortization of intangible assets	14			16			17			17			17
Less: Tax impact of amortization of intangible assets	3			4			4			4			4
Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets – Non-GAAP	$	916		$	521		$	332		$	848		$	712

Average common shareholders’ equity	$	35,604		$	35,259		$	35,942		$	36,199		$	37,363
Less: Average goodwill	16,160			16,229			17,189			17,347			17,490
Average intangible assets	2,899			2,905			2,922			2,949			2,979
Add: Deferred tax liability – tax deductible goodwill	1,187			1,181			1,175			1,187			1,184
Deferred tax liability – intangible assets	660			660			660			668			673
Average tangible common shareholders’ equity – Non-GAAP	$	18,392		$	17,966		$	17,666		$	17,758		$	18,751

Return on common equity – GAAP	10.3		%	5.7		%	3.5		%	9.3		%	7.6		%
Return on tangible common equity – Non-GAAP	20.2		%	11.5		%	7.5		%	19.2		%	15.4		%


THE BANK OF NEW YORK MELLON CORPORATION
EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
Book value and tangible book value per common share reconciliation	2023			2022
(dollars in millions, except common shares and unless otherwise noted)	March 31			Dec. 31			Sept. 30			June 30			March 31
BNY Mellon shareholders’ equity at period end – GAAP	$	40,634		$	40,734		$	39,737		$	40,984		$	41,799
Less: Preferred stock	4,838			4,838			4,838			4,838			4,838
BNY Mellon common shareholders’ equity at period end – GAAP	35,796			35,896			34,899			36,146			36,961
Less: Goodwill	16,192			16,150			16,412			17,271			17,462
Intangible assets	2,890			2,901			2,902			2,934			2,968
Add: Deferred tax liability – tax deductible goodwill	1,187			1,181			1,175			1,187			1,184
Deferred tax liability – intangible assets	660			660			660			668			673
BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP	$	18,561		$	18,686		$	17,420		$	17,796		$	18,388

Period-end common shares outstanding (in thousands)	789,134			808,445			808,280			808,103			807,798

Book value per common share – GAAP	$	45.36		$	44.40		$	43.18		$	44.73		$	45.76
Tangible book value per common share – Non-GAAP	$	23.52		$	23.11		$	21.55		$	22.02		$	22.76



Net interest margin reconciliation
(dollars in millions)	1Q23			4Q22			3Q22			2Q22			1Q22
Net interest revenue – GAAP	$	1,128		$	1,056		$	926		$	824		$	698
Add: Tax equivalent adjustment	—			2			3			3			3
Net interest revenue (FTE) – Non-GAAP	$	1,128		$	1,058		$	929		$	827		$	701

Average interest-earning assets	$	348,378		$	352,987		$	352,062		$	370,782		$	373,186

Net interest margin – GAAP (a)	1.29		%	1.19		%	1.05		%	0.89		%	0.75		%
Net interest margin (FTE) – Non-GAAP (a)	1.29		%	1.19		%	1.05		%	0.89		%	0.76		%
(a) Net interest margin is annualized.


THE BANK OF NEW YORK MELLON CORPORATION
EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
Pre-tax operating margin reconciliation - Investment and Wealth Management business segment
(dollars in millions)	1Q23			4Q22			3Q22			2Q22			1Q22
Income (loss) before income taxes – GAAP	$	93		$	125		$	(497)		$	208		$	212

Total revenue – GAAP	$	827		$	825		$	862		$	899		$	964
Less: Distribution and servicing expense	86			87			88			91			79
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP	$	741		$	738		$	774		$	808		$	885

Pre-tax operating margin – GAAP (a)	11		%	15		%	(57)		%	23		%	22		%
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a)	13		%	17		%	(64)		%	26		%	24		%
(a) Income before income taxes divided by total revenue.



Constant currency reconciliations							1Q23 vs.
(dollars in millions)	1Q23			1Q22			1Q22
Consolidated:
Investment management and performance fees – GAAP	$	776		$	883		(12)		%
Impact of changes in foreign currency exchange rates	—			(28)
Adjusted investment management and performance fees – Non-GAAP	$	776		$	855		(9)		%


Investment and Wealth Management business segment:
Investment management and performance fees – GAAP	$	774		$	882		(12)		%
Impact of changes in foreign currency exchange rates	—			(28)
Adjusted investment management and performance fees – Non-GAAP	$	774		$	854		(9)		%