Bank of New York Mellon : Financial Supplement (PDF)

The Bank of New York Mellon Corporation

Financial Supplement

Third Quarter 2020

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												3Q20 vs.							YTD20 vs.
noted)		3Q20		2Q20		1Q20		4Q19		3Q19	2Q20	3Q19			YTD20		YTD19		YTD19
Selected income statement data
Fee revenue	$	3,108	$	3,167	$	3,323	$	3,971	$	3,129		(2)%	(1)%	$	9,598	$	9,265	4 %
Net securities gains (losses)		9		9		9		(25)		(1)		N/M	N/M			27		7		N/M
Total fee and other revenue		3,117		3,176		3,332		3,946		3,128		(2)	-			9,625		9,272	4
Income (loss) from consolidated investment management funds		27		54		(38)		17		3		N/M	N/M			43		39		N/M
Net interest revenue		703		780		814		815		730		(10)	(4)			2,297		2,373	(3)
Total revenue		3,847		4,010		4,108		4,778		3,861		(4)	-			11,965		11,684	2
Provision for credit losses		9		143		169		(8)		(16)		N/M	N/M			321		(17)		N/M
Noninterest expense		2,681		2,686		2,712		2,964		2,590		-	4			8,079		7,936	2
Income before income taxes		1,157		1,181		1,227		1,822		1,287		(2)	(10)			3,565		3,765	(5)
Provision for income taxes		213		216		265		373		246		(1)	(13)			694		747	(7)
Net income	$	944	$	965	$	962	$	1,449	$	1,041		(2)%	(9)%	$	2,871	$	3,018	(5)%
Net income applicable to common shareholders of The Bank of New York	$	876	$	901	$	944	$	1,391	$	1,002		(3)%	(13)%	$	2,721	$	2,881	(6)%
Mellon Corporation
Diluted earnings per common share	$	0.98	$	1.01	$	1.05	$	1.52	$	1.07		(3)%	(8)%	$	3.04	$	3.01	1 %
Average common shares and equivalents outstanding - diluted (in thousands)	891,069	890,561	896,689	914,739	935,677		- %	(5)%	892,793	951,876	(6)%
Financial ratios(Returns are annualized)
Pre-tax operating margin		30 %		29 %		30 %		38 %		33 %						30 %		32 %
Return on common equity		8.7 %		9.4 %		10.1 %		14.6 %		10.6 %						9.4 %		10.3 %
Return on tangible common equity - Non-GAAP(a)		16.7 %		18.5 %		20.4 %		29.3 %		21.4 %						18.5 %		21.1 %
Non-U.S. revenue as a percentage of total revenue		37 %		36 %		36 %		31 %		37 %						37 %		36 %
Period end
Assets under custody and/or administration ("AUC/A") (in trillions) (b)	$	38.6	$	37.3	$	35.2	$	37.1	$	35.8		3 %	8 %
Assets under management ("AUM") (in trillions)	$	2.04	$	1.96	$	1.80	$	1.91	$	1.88		4 %	9 %
Full-time employees		48,600		48,300		47,900		48,400		48,700		1 %	- %
Book value per common share	$	45.58	$	44.21	$	42.47	$	42.12	$	40.75
Tangible book value per common share - Non-GAAP(a)	$	24.60	$	23.31	$	21.53	$	21.33	$	20.59
Cash dividends per common share	$	0.31	$	0.31	$	0.31	$	0.31	$	0.31
Common dividend payout ratio		32 %		31 %		30 %		20 %		29 %
Closing stock price per common share	$	34.34	$	38.65	$	33.68	$	50.33	$	45.21
Market capitalization	$ 30,430	$ 34,239	$ 29,822	$ 45,331	$ 41,693
Common shares outstanding (in thousands)	886,136	885,862	885,443	900,683	922,199
Capital ratios at period end(c)
Common Equity Tier 1 ("CET1") ratio		13.0 %		12.6 %		11.3 %		11.5 %		11.1 %
Tier 1 capital ratio		15.7 %		15.4 %		13.5 %		13.7 %		13.2 %
Total capital ratio		16.6 %		16.3 %		14.3 %		14.4 %		14.0 %
Tier 1 leverage ratio		6.5 %		6.2 %		6.0 %		6.6 %		6.5 %
Supplementary leverage ratio ("SLR")		8.5 %		8.2 %		5.6 %		6.1 %		6.0 %

1. Non-GAAPinformation, 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.
2. Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.4 trillion at Sept. 30, 2020, $1.3 trillion at June 30, 2020, $1.2 trillion at March 31, 2020, $1.5 trillion at Dec. 31, 2019 and $1.4 trillion at Sept. 30, 2019.
3. Regulatory capital ratios for Sept. 30, 2020 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. 30,2020, June 30, 2020, Dec. 31, 2019 and Sept. 30, 2019, was the Advanced Approaches, and for March 31, 2020 was the Standardized Approach for the CET1 and Tier 1 capital ratios and the Advanced Approaches for the Total capital ratio.

N/M - Not meaningful.

3

THE BANK OF NEW YORK MELLON CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENT

(dollars in millions, except per share amounts; common shares in												3Q20 vs.							YTD20 vs.
thousands)		3Q20		2Q20		1Q20		4Q19		3Q19	2Q20	3Q19			YTD20		YTD19		YTD19
Revenue
Investment services fees:
Asset servicing fees	$	1,168	$	1,173	$	1,159	$	1,148	$	1,152		- %	1 %	$	3,500	$	3,415	2 %
Clearing services fees		397		431		470		421		419		(8)	(5)			1,298		1,227	6
Issuer services fees		295		277		263		264		324		6	(9)			835		866	(4)
Treasury services fees		152		144		149		147		140		6	9			445		412	8
Total investment services fees		2,012		2,025		2,041		1,980		2,035		(1)	(1)			6,078		5,920	3
Investment management and performance fees		835		786		862		883		832		6	-			2,483		2,506	(1)
Foreign exchange and other trading revenue		137		166		319		168		150		(17)	(9)			622		486	28
Financing-related fees		49		58		59		46		49		(16)	-			166		150	11
Distribution and servicing		29		27		31		34		33		7	(12)			87		95	(8)
Investment and other income		46		105		11		860		30		N/M	N/M			162		108		N/M
Total fee revenue		3,108		3,167		3,323		3,971		3,129		(2)	(1)			9,598		9,265	4
Net securities gains (losses)		9		9		9		(25)		(1)		N/M	N/M			27		7		N/M
Total fee and other revenue		3,117		3,176		3,332		3,946		3,128		(2)	-			9,625		9,272	4
Income (loss) from consolidated investment management funds		27		54		(38)		17		3		N/M	N/M			43		39		N/M
Net interest revenue		703		780		814		815		730		(10)	(4)			2,297		2,373	(3)
Total revenue		3,847		4,010		4,108		4,778		3,861		(4)	-			11,965		11,684	2
Provision for credit losses		9		143		169		(8)		(16)		N/M	N/M			321		(17)		N/M
Noninterest expense
Staff		1,466		1,464		1,482		1,639		1,479		-	(1)			4,412		4,424		-
Professional, legal and other purchased services		355		337		330		367		316		5	12			1,022		978	4
Software and equipment		340		345		326		326		309		(1)	10			1,011		896	13
Net occupancy		136		137		135		151		138		(1)	(1)			408		413	(1)
Sub-custodian and clearing		119		120		105		119		111		(1)	7			344		331	4
Distribution and servicing		85		85		91		92		97		-	(12)			261		282	(7)
Bank assessment charges		30		35		35		32		31		(14)	(3)			100		93	8
Business development		17		20		42		65		47		(15)	(64)			79		148	(47)
Amortization of intangible assets		26		26		26		28		30		-	(13)			78		89	(12)
Other		107		117		140		145		32		(9)	234			364		282	29
Total noninterest expense		2,681		2,686		2,712		2,964		2,590		-	4			8,079		7,936	2
Income before income taxes		1,157		1,181		1,227		1,822		1,287		(2)	(10)			3,565		3,765	(5)
Provision for income taxes		213		216		265		373		246		(1)	(13)			694		747	(7)
Net income		944		965		962		1,449		1,041		(2)	(9)			2,871		3,018	(5)
Net (income) loss attributable to noncontrolling interests		(7)		(15)		18		(9)		(3)		N/M	N/M			(4)		(17)		N/M
Preferred stock dividends		(61)		(49)		(36)		(49)		(36)		N/M	N/M			(146)		(120)		N/M
Net income applicable to common shareholders of The Bank of New York	$	876	$	901	$	944	$	1,391	$	1,002		(3)%	(13)%	$	2,721	$	2,881	(6)%
Mellon Corporation
Average common shares and equivalents outstanding: Basic		889,499		889,020		894,122		911,324		933,264		- %	(5)%			891,050		949,035	(6)%
Diluted		891,069		890,561		896,689		914,739		935,677		- %	(5)%			892,793		951,876	(6)%
Earnings per common share: Basic	$	0.98	$	1.01	$	1.05	$	1.52	$	1.07		(3)%	(8)%	$	3.05	$	3.02	1 %
Diluted	$	0.98	$	1.01	$	1.05	$	1.52	$	1.07		(3)%	(8)%	$	3.04	$	3.01	1 %
N/M - Not meaningful.

4

THE BANK OF NEW YORK MELLON CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

				2020					2019
(in millions)		Sept. 30		June 30		March 31			Dec. 31		Sept. 30
Assets
Cash and due from banks	$	4,104	$	4,776	$	5,091	$	4,830	$	6,718
Interest-bearing deposits with the Federal Reserve and other central banks		106,185		112,728		146,535			95,042		73,811
Interest-bearing deposits with banks		19,027		18,045		22,672			14,811		15,417
Federal funds sold and securities purchased under resale agreements		29,647		36,638		27,363			30,182		43,723
Securities		155,339		154,682		139,273			123,033		122,340
Trading assets		13,074		14,150		12,918			13,571		10,180
Loans		55,491		55,397		62,368			54,953		54,881
Allowance for loan losses		(325)		(302)		(140)			(122)		(127)
Net loans		55,166		55,095		62,228			54,831		54,754
Premises and equipment		3,617		3,598		3,514			3,625		3,149
Accrued interest receivable		489		540		576			624		596
Goodwill		17,357		17,253		17,240			17,386		17,248
Intangible assets		3,026		3,045		3,070			3,107		3,124
Other assets		20,779		21,306		27,446			20,221		21,727
Subtotal assets of operations		427,810		441,856		467,926			381,263		372,787
Assets of consolidated investment management funds, at fair value		588		460		229			245		381
Total assets	$	428,398	$	442,316	$	468,155	$	381,508	$	373,168
Liabilities
Deposits	$	296,312	$	305,470	$	336,717	$	259,466	$	249,660
Federal funds purchased and securities sold under repurchase agreements		15,907		14,512		13,128			11,401		11,796
Trading liabilities		6,084		5,595		6,625			4,841		4,756
Payables to customers and broker-dealers		23,514		25,012		24,016			18,758		18,364
Commercial paper		671		665		1,121			3,959		3,538
Other borrowed funds		420		1,628		1,544			599		820
Accrued taxes and other expenses		5,347		5,029		4,705			5,642		5,081
Other liabilities		8,671		12,869		11,425			7,612		9,796
Long-term debt		26,121		27,566		27,494			27,501		27,872
Subtotal liabilities of operations		383,047		398,346		426,775			339,779		331,683
Liabilities of consolidated investment management funds, at fair value		4		4		1			1		15
Total liabilities		383,051		398,350		426,776			339,780		331,698
Temporary equity
Redeemable noncontrolling interests		179		157		140			143		147
Permanent equity
Preferred stock		4,532		4,532		3,542			3,542		3,542
Common stock		14		14		14			14		14
Additional paid-in capital		27,741		27,702		27,644			27,515		27,471
Retained earnings		33,821		33,224		32,601			31,894		30,789
Accumulated other comprehensive loss, net of tax		(1,359)		(1,943)		(2,827)			(2,638)		(2,893)
Less: Treasury stock, at cost		(19,832)		(19,832)		(19,829)			(18,844)		(17,803)
Total The Bank of New York Mellon Corporation shareholders' equity		44,917		43,697		41,145			41,483		41,120
Nonredeemable noncontrolling interests of consolidated investment management funds		251		112		94			102		203
Total permanent equity		45,168		43,809		41,239			41,585		41,323
Total liabilities, temporary equity and permanent equity	$	428,398	$	442,316	$	468,155	$	381,508	$	373,168

5

THE BANK OF NEW YORK MELLON CORPORATION

FEE AND OTHER REVENUE

												3Q20 vs.							YTD20 vs.
(dollars in millions)		3Q20		2Q20		1Q20		4Q19		3Q19	2Q20	3Q19			YTD20		YTD19		YTD19
Investment services fees:
Asset servicing fees (a)	$	1,128	$	1,117	$	1,108	$	1,104	$	1,109		1 %	2 %	$	3,353	$	3,280	2 %
Securities lending revenue		40		56		51		44		43		(29)	(7)			147		135	9
Clearing services fees (b)		397		431		470		421		419		(8)	(5)			1,298		1,227	6
Issuer services fees		295		277		263		264		324		6	(9)			835		866	(4)
Treasury services fees		152		144		149		147		140		6	9			445		412	8
Total investment services fees		2,012		2,025		2,041		1,980		2,035		(1)	(1)			6,078		5,920	3
Investment management and performance fees (c):
Investment management fees		828		781		812		835		830		6	-			2,421		2,471	(2)
Performance fees		7		5		50		48		2		N/M	N/M			62		35	77
Total investment management and performance fees (d)		835		786		862		883		832		6	-			2,483		2,506	(1)
Foreign exchange and other trading revenue:
Foreign exchange		151		174		253		138		129		(13)	17			578		439	32
Other trading (loss) revenue		(14)		(8)		66		30		21		N/M	N/M			44		47		N/M
Total foreign exchange and other trading revenue		137		166		319		168		150		(17)	(9)			622		486	28
Financing-related fees		49		58		59		46		49		(16)	-			166		150	11
Distribution and servicing		29		27		31		34		33		7	(12)			87		95	(8)
Investment and other income:
Corporate/bank-owned life insurance		33		36		36		43		33		N/M	N/M			105		95		N/M
Expense reimbursements from joint venture		23		19		21		20		21		N/M	N/M			63		59		N/M
Asset-related gains		4		3		4		815		2		N/M	N/M			11		4		N/M
Seed capital gains (losses) (c)		9		23		(31)		4		-	N/M	N/M			1		10		N/M
Other (loss) income		(23)		24		(19)		(22)		(26)		N/M	N/M			(18)		(60)		N/M
Total investment and other income (c)		46		105		11		860		30		N/M	N/M			162		108		N/M
Total fee revenue		3,108		3,167		3,323		3,971		3,129		(2)	(1)			9,598		9,265	4
Net securities gains (losses)		9		9		9		(25)		(1)		N/M	N/M			27		7		N/M
Total fee and other revenue	$	3,117	$	3,176	$	3,332	$	3,946	$	3,128		(2)%	- %	$	9,625	$	9,272	4 %

1. Asset servicing fees include the fees from the Clearance and Collateral Management business.
2. Clearing services fees are almost entirely earned by our Pershing business.
3. Excludes seed capital gains (losses) related to consolidated investment management funds, which are reflected in operations of consolidated investment management funds.
4. On a constant currency basis (Non-GAAP), investment management and performance fees decreased 1% compared with 3Q19. 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.

6

THE BANK OF NEW YORK MELLON CORPORATION

AVERAGE BALANCES AND INTEREST RATES

		3Q20			2Q20			1Q20			4Q19			3Q19
		Average	Average			Average	Average			Average	Average			Average	Average			Average	Average
(dollars in millions; average rates are annualized)		balance	rate			balance	rate			balance	rate			balance	rate			balance	rate
Assets
Interest-earning assets:
Interest-bearing deposits with the Federal Reserve and other central banks	$	90,670	(0.04)%	$	94,229	(0.03)%	$	80,403	0.39 %	$	61,627	0.60 %	$	60,030	0.67 %
Interest-bearing deposits with banks (primarily foreign banks)		19,202	0.42			21,093	0.76			17,081	1.37			15,788	1.63			15,324	1.89
Federal funds sold and securities purchased under resale agreements (a)		30,342	0.63			30,265	0.82			34,109	4.67			38,846	4.62			40,816	6.42
Margin loans		12,870	1.24			12,791	1.28			12,984	2.69			11,609	3.25			10,303	4.02
Non-margin loans:
Domestic offices		30,053	2.12			31,185	2.21			31,720	3.02			29,690	3.36			29,285	2.75	(b)
Foreign offices		10,693	1.45			12,743	1.84			11,170	2.55			11,418	2.70			11,247	2.97
Total non-margin loans		40,746	1.94			43,928	2.10			42,890	2.89			41,108	3.18			40,532	2.81	(b)
Securities:
U.S. government obligations		30,073	1.36			27,901	1.52			23,175	1.87			18,444	2.08			19,315	2.11
U.S. government agency obligations		78,300	1.68			74,583	1.92			69,046	2.32			67,494	2.36			67,235	2.49
State and political subdivisions (c)		1,500	2.51			1,025	2.98			1,033	3.06			1,134	3.03			1,217	3.05
Other securities (c)		46,719	0.59			45,511	0.82			36,375	0.95			35,242	1.64			33,729	1.75
Trading securities (c)		7,212	0.91			6,236	1.13			6,840	2.36			6,695	2.41			5,653	2.80
Total securities (c)		163,804	1.28			155,256	1.50			136,469	1.88			129,009	2.13			127,149	2.25
Total interest-earning assets (c)	$	357,634	0.92 %	$	357,562	1.06 %	$	323,936	1.95 %	$	297,987	2.30 %	$	294,154	2.63 %	(b)
Noninterest-earning assets		57,231				57,797				61,342				56,354				56,525
Total assets	$	414,865		$	415,359		$	385,278		$	354,341		$	350,679
Liabilities and equity
Interest-bearing liabilities:
Interest-bearing deposits:
Domestic offices	$	102,767	(0.01)%	$	102,135	0.06 %	$	99,915	0.69 %	$	87,162	0.98 %	$	82,663	1.28 %
Foreign offices		108,733	(0.09)			108,508	(0.12)			97,717	0.29			95,262	0.49			94,738	0.71
Total interest-bearing deposits		211,500	(0.05)			210,643	(0.03)			197,632	0.49			182,424	0.73			177,401	0.98
Federal funds purchased and securities sold under repurchase		16,850	0.13			14,209	0.03			13,919	7.96			12,668	9.11			13,432	13.08
agreements (a)
Trading liabilities		2,692	0.30			1,974	0.39			1,626	1.61			1,504	2.25			1,371	2.33
Other borrowed funds		873	1.40			2,272	1.30			719	2.27			709	2.83			1,148	3.24
Commercial paper		2,274	0.09			191	1.02			1,581	1.56			1,792	1.66			3,796	2.26
Payables to customers and broker-dealers		18,501	(0.01)			18,742	(0.01)			16,386	0.73			15,178	1.07			15,440	1.52
Long-term debt		26,511	2.01			28,122	2.42			27,231	2.83			28,117	3.09			28,386	3.24
Total interest-bearing liabilities	$	279,201	0.16 %	$	276,153	0.24 %	$	259,094	1.17 %	$	242,392	1.48 %	$	240,974	1.99 %
Total noninterest-bearing deposits		67,610				72,411				60,577				49,632				49,027
Other noninterest-bearing liabilities		23,393				24,121				24,229				20,681				19,280
Total The Bank of New York Mellon Corporation shareholders' equity		44,456				42,486				41,206				41,384				41,139
Noncontrolling interests		205				188				172				252				259
Total liabilities and equity	$	414,865		$	415,359		$	385,278		$	354,341		$	350,679
Net interest margin			0.79 %				0.88 %				1.01 %				1.09 %				0.99 %	(b)
Net interest margin (FTE) - Non-GAAP(d)			0.79 %				0.88 %				1.01 %				1.09 %				1.00 %	(b)

1. Includes the average impact of offsetting under enforceable netting agreements of approximately $43 billion for 3Q20, $67 billion for 2Q20, $80 billion for 1Q20, $60 billion for 4Q19 and $68 billion for 3Q19. 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 0.26% for 3Q20 and 2Q20, 1.39% for 1Q20, 1.82% for 4Q19 and 2.42% for 3Q19. 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 0.04% for 3Q20, 0.00% for 2Q20, 1.18% for 1Q20, 1.59% for 4Q19 and 2.17% for 3Q19. 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.
2. Includes the impact of the lease-related impairment of $70 million in 3Q19. On a Non-GAAP basis, excluding the lease-related impairment, the yield on non-margin loans in domestic offices would have been 3.70%, the yield on total non-margin loans would have been 3.50%, the yield on total interest-earning assets would have been 2.72% and the net interest margin and the net interest margin (FTE) - Non-GAAP would have been 1.09% in 3Q19.
3. Average rates were calculated on an FTE basis, at tax rates of approximately 21%.
4. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.

7

THE BANK OF NEW YORK MELLON CORPORATION

CAPITAL AND LIQUIDITY

				2020						2019
(dollars in millions)		Sept. 30		June 30			March 31			Dec. 31		Sept. 30
Consolidated regulatory capital ratios (a)
Standardized Approach:
CET1 capital	$	21,171	$	20,035		$	18,465	$	18,540	$	18,196
Tier 1 capital		25,614		24,478			21,933			21,996		21,677
Total capital		27,331		26,183			23,494			23,449		23,145
Risk-weighted assets		156,741		157,290			163,006			148,695		148,399
CET1 ratio		13.5 %		12.7 %			11.3 %			12.5 %		12.3 %
Tier 1 capital ratio		16.3		15.6			13.5			14.8		14.6
Total capital ratio		17.4		16.6			14.4			15.8		15.6
Advanced Approaches:
CET1 capital	$	21,171	$	20,035		$	18,465	$	18,540	$	18,196
Tier 1 capital		25,614		24,478			21,933			21,996		21,677
Total capital		27,095		25,937			23,281			23,233		22,921
Risk-weighted assets		163,136		159,340			162,561			160,898		164,172
CET1 ratio		13.0 %		12.6 %			11.4 %			11.5 %		11.1 %
Tier 1 capital ratio		15.7		15.4			13.5			13.7		13.2
Total capital ratio		16.6		16.3			14.3			14.4		14.0
Tier 1 leverage ratio		6.5 %		6.2 %			6.0 %			6.6 %		6.5 %
SLR:
Leverage exposure	$	300,105 (b)	$	297,300	(b)	$	392,807	$	362,452	$	359,023
SLR		8.5 % (b)		8.2 % (b)		5.6 %			6.1 %		6.0 %
Average liquidity coverage ratio		111 %		112 %			115 %			120 %		117 %

1. Regulatory capital ratios for Sept. 30, 2020 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, 2020, June 30, 2020, Dec. 31, 2019 and Sept. 30, 2019, was the Advanced Approaches, and for March 31, 2020 was the Standardized Approach for the CET1 and Tier 1 capital ratios and the Advanced Approaches for the Total capital ratio.
2. Reflects the application of a new rule effective April 1, 2020 to exclude certain central bank placements. Also effective on April 1, 2020 was the temporary exclusion of U.S. Treasury securities from the leverage exposure used in the SLR calculation which increased our consolidated SLR by 78 basis points at Sept. 30, 2020 and 40 basis points at June 30, 2020.

8

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT SERVICES BUSINESS

												3Q20 vs.							YTD20 vs.
(dollars in millions)		3Q20		2Q20		1Q20		4Q19		3Q19	2Q20	3Q19			YTD20		YTD19		YTD19
Revenue:
Investment services fees:
Asset servicing fees (ex. securities lending revenue) (a)	$	1,119	$	1,113	$	1,101	$	1,098	$	1,099		1 %	2 %	$	3,333	$	3,252	2 %
Securities lending revenue		37		51		46		40		39		(27)	(5)			134		123	9
Clearing services fees (b)		397		431		470		421		419		(8)	(5)			1,298		1,228	6
Issuer services fees		295		277		263		264		324		6	(9)			835		866	(4)
Treasury services fees		152		144		149		147		139		6	9			445		411	8
Total investment services fees		2,000		2,016		2,029		1,970		2,020		(1)	(1)			6,045		5,880	3
Foreign exchange and other trading revenue		146		178		261		151		160		(18)	(9)			585		470	24
Other (c)		100		145		146		115		116		(31)	(14)			391		340	15
Total fee and other revenue		2,246		2,339		2,436		2,236		2,296		(4)	(2)			7,021		6,690	5
Net interest revenue		681		768		806		778		761		(11)	(11)			2,255		2,348	(4)
Total revenue		2,927		3,107		3,242		3,014		3,057		(6)	(4)			9,276		9,038	3
Provision for credit losses		(10)		145		149		(5)		(15)		N/M	N/M			284		(11)		N/M
Noninterest expense (ex. amortization of intangible assets)		2,002		1,971		1,969		2,160		1,952		2	3			5,942		5,856	1
Amortization of intangible assets		18		18		18		19		21		-	(14)			54		61	(11)
Total noninterest expense		2,020		1,989		1,987		2,179		1,973		2	2			5,996		5,917	1
Income before taxes	$	917	$	973	$	1,106	$	840	$	1,099		(6)%	(17)%	$	2,996	$	3,132	(4)%
Pre-tax operating margin		31 %		31 %		34 %		28 %		36 %						32 %		35 %
Total revenue by line of business:
Asset Servicing	$	1,354	$	1,463	$	1,531	$	1,411	$	1,411		(7)%	(4)%	$	4,348	$	4,223	3 %
Pershing		538		578		653		579		575		(7)	(6)			1,769		1,708	4
Issuer Services		435		431		419		415		466		1	(7)			1,285		1,308	(2)
Treasury Services		323		340		339		329		312		(5)	4			1,002		946	6
Clearance and Collateral Management		277		295		300		280		293		(6)	(5)			872		853	2
Total revenue by line of business	$	2,927	$	3,107	$	3,242	$	3,014	$	3,057		(6)%	(4)%	$	9,276	$	9,038	3 %

1. Asset servicing fees include the fees from the Clearance and Collateral Management business.
2. Clearing services fees are almost entirely earned by our Pershing business.
3. Other revenue includes investment management fees, financing-related fees, distribution and servicing revenue, securities gains and losses and investment and other income. N/M - Not meaningful.

9

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT SERVICES BUSINESS

												3Q20 vs.								YTD20 vs.
(dollars in millions, unless otherwise noted)		3Q20		2Q20		1Q20		4Q19		3Q19		2Q20	3Q19			YTD20		YTD19		YTD19
Average loans	$	40,308	$	43,113	$	41,789	$	38,721	$	37,005		(7)%		9 %	$	41,731	$	36,881	13 %
Average assets	$	329,324	$	335,288	$	304,089	$	278,098	$	269,926		(2)%		22 %	$	322,924	$	263,631	22 %
Average deposits	$	263,621	$	268,467	$	242,187	$	215,388	$	208,044		(2)%		27 %	$	258,112	$	201,472	28 %
AUC/A at period end (in trillions) (a)(b)	$	38.6	$	37.3	$	35.2	$	37.1	$	35.8		3 %		8 %
Market value of securities on loan at period end (in billions) (c)	$	378	$	384	$	389	$	378	$	362		(2)%		4 %
Pershing
Net new assets (U.S. platform) (in billions) (d)	$	12	$	11	$	31	$	33	$	19		N/M		N/M
Average active clearing accounts (U.S. platform) (in thousands)		6,556		6,507		6,437		6,340		6,283		1 %		4 %
Average long-term mutual fund assets (U.S. platform)	$	597,312	$	547,579	$	549,206	$	573,475	$	547,522		9 %		9 %
Average investor margin loans (U.S. platform)	$	9,350	$	9,235	$	9,419	$	9,420	$	9,222		1 %		1 %
Clearance and Collateral Management
Average tri-party collateral management balances (in billions)	$	3,417	$	3,573	$	3,724	$	3,562	$	3,550		(4)%		(4)%

1. Sept. 30, 2020 information is preliminary.
2. 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 $1.4 trillion at Sept. 30, 2020, $1.3 trillion at June 30, 2020, $1.2 trillion at March 31, 2020, $1.5 trillion at Dec. 31, 2019 and $1.4 trillion at Sept. 30, 2019.
3. 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 $62 billion at Sept. 30, 2020 and June 30, 2020, $59 billion at March 31, 2020, $60 billion at Dec. 31, 2019 and $66 billion at Sept. 30, 2019.
4. Net new assets represents net flows of assets (e.g., net cash deposits and net securities transfers) in customer accounts in Pershing LLC, a U.S. broker-dealer.

N/M - Not meaningful.

10

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT AND WEALTH MANAGEMENT BUSINESS

												3Q20 vs.							YTD20 vs.
(dollars in millions)		3Q20		2Q20		1Q20		4Q19		3Q19	2Q20	3Q19			YTD20		YTD19		YTD19
Revenue:
Investment management fees (a)	$	828	$	782	$	812	$	836	$	830		6 %	- %	$	2,422	$	2,471	(2)%
Performance fees		7		5		50		48		2		N/M	N/M			62		35	77
Investment management and performance fees (b)		835		787		862		884		832		6	-			2,484		2,506	(1)
Distribution and servicing		31		34		43		44		45		(9)	(31)			108		134	(19)
Other (a)		5		17		(59)		(4)		(39)		N/M	N/M			(37)		(79)		N/M
Total fee and other revenue (a)		871		838		846		924		838		4	4			2,555		2,561		-
Net interest revenue		47		48		52		47		49		(2)	(4)			147		175	(16)
Total revenue		918		886		898		971		887		4	3			2,702		2,736	(1)
Provision for credit losses		12		7		9		-		-	N/M	N/M			28		(1)		N/M
Noninterest expense (ex. amortization of intangible assets)		653		650		687		722		582		-	12			1,990		1,888	5
Amortization of intangible assets		8		8		8		9		10		-	(20)			24		28	(14)
Total noninterest expense		661		658		695		731		592		-	12			2,014		1,916	5
Income before taxes	$	245	$	221	$	194	$	240	$	295		11 %	(17)%	$	660	$	821	(20)%
Pre-tax operating margin		27 %		25 %		22 %		25 %		33 %						24 %		30 %
Adjusted pre-tax operating margin - Non-GAAP(c)		29 %		28 %		24 %		27 %		37 %						27 %		33 %
Total revenue by line of business:
Investment Management	$	641	$	621	$	620	$	692	$	608		3 %	5 %	$	1,882	$	1,870	1 %
Wealth Management		277		265		278		279		279		5	(1)			820		866	(5)
Total revenue by line of business	$	918	$	886	$	898	$	971	$	887		4 %	3 %	$	2,702	$	2,736	(1)%
Average loans	$	11,503	$	11,791	$	12,124	$	12,022	$	12,013		(2)%	(4)%	$	11,805	$	12,184	(3)%
Average assets	$	30,160	$	30,327	$	30,543	$	28,481	$	27,840		(1)%	8 %	$	30,343	$	29,815	2 %
Average deposits	$	17,570	$	17,491	$	16,144	$	15,195	$	14,083		- %	25 %	$	17,070	$	14,831	15 %

1. Total fee and other revenue includes the impact of the consolidated investment management funds, net of noncontrolling interests. Additionally, other revenue includes asset servicing fees, treasury services fees, foreign exchange and other trading revenue and investment and other income.
2. On a constant currency basis (Non-GAAP), investment management and performance fees decreased 1% compared with 3Q19. See "Supplemental Information - Explanation of GAAP and Non- GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.
3. 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.

11

THE BANK OF NEW YORK MELLON CORPORATION

AUM BY PRODUCT, AUM FLOWS AND WEALTH MANAGEMENT CLIENT ASSETS

												3Q20 vs.
(dollars in billions)		3Q20		2Q20		1Q20		4Q19		3Q19	2Q20	3Q19
AUM by product type (a)(b)
Equity	$	149	$	141	$	120	$	154	$	147		6 %	1 %
Fixed income		241		224		211		224		211		8	14
Index		350		333		274		339		321		5	9
Liability-driven investments		788		752		705		728		742		5	6
Multi-asset and alternative investments		193		185		171		192		182		4	6
Cash		320		326		315		273		278		(2)	15
Total AUM by product type	$	2,041	$	1,961	$	1,796	$	1,910	$	1,881		4 %	9 %
Changes in AUM (a)(b)
Beginning balance of AUM	$	1,961	$	1,796	$	1,910	$	1,881	$	1,843
Net inflows (outflows):
Long-term strategies:
Equity		(4)		(2)		(2)		(6)		(4)
Fixed income		1		4		-		5		2
Liability-driven investments		14		(2)		(5)		(3)		(4)
Multi-asset and alternative investments		(3)		-		(1)		3		(1)
Total long-term active strategies inflows (outflows)		8		-		(8)		(1)		(7)
Index		(3)		9		3		(5)		(3)
Total long-term strategies inflows (outflows)		5		9		(5)		(6)		(10)
Short-term strategies:
Cash		(10)		11		43		(7)		11
Total net (outflows) inflows		(5)		20		38		(13)		1
Net market impact		41		143		(91)		(20)		66
Net currency impact		44		2		(61)		62		(29)
Ending balance of AUM	$	2,041	$	1,961	$	1,796	$	1,910	$	1,881		4 %	9 %
Wealth Management client assets (a)(c)	$	265	$	254	$	236	$	266	$	259		4 %	2 %

1. Sept. 30, 2020 information is preliminary.
2. Excludes securities lending cash management assets and assets managed in the Investment Services business.
3. Includes AUM and AUC/A in the Wealth Management business.

12

THE BANK OF NEW YORK MELLON CORPORATION

OTHER SEGMENT

(in millions)		3Q20		2Q20		1Q20		4Q19			3Q19			YTD20		YTD19
Fee revenue (loss)	$	11	$	29	$	21	$	817	(a)	$	(5)	$	61	$	36
Net securities gains (losses)		9		9		9		(23)			(1)			27		7
Total fee and other revenue (loss)		20		38		30		794			(6)			88		43
Net interest (expense)		(25)		(36)		(44)		(10)			(80)			(105)		(150)
Total (loss) revenue		(5)		2		(14)		784			(86)			(17)		(107)
Provision for credit losses		7		(9)		11		(3)			(1)			9		(5)
Noninterest expense		-		39		30		54			25			69		103
(Loss) income before taxes	$	(12)	$	(28)	$	(55)	$	733		$	(110)	$	(95)	$	(205)
Average loans and leases	$	1,805	$	1,815	$	1,961	$	1,974		$	1,817	$	1,861	$	1,789
Average assets	$	55,381	$	49,744	$	50,646	$	47,762		$	52,913	$	51,936	$	49,683
(a) Includes a gain on sale of an equity investment.

13

THE BANK OF NEW YORK MELLON CORPORATION

SECURITIES PORTFOLIO

		June 30,		3Q20		Sept. 30, 2020		Fair value						Ratings (c)
		2020			change in						as a % of								A1+/
					unrealized	Amortized				amortized Unrealized		% Floating	AAA/	A+/	BBB+/	BB+ and	A2 &	Not
(dollars in millions)		Fair value			Fair value
		gain (loss)		cost			cost (a)	gain (loss)		rate (b)	AA-	A-	BBB-	lower	SP-1+	rated
Agency RMBS	$	60,401		$	47	$	61,348	$	62,922		103 % $	1,574		16 %	100 %	- %	- %	- %	- %	- %
U.S. Treasury		28,651			83		26,454		26,964		102	510		42	100	-	-	-	-	-
Sovereign debt/sovereign		16,868			8		14,908		15,086		101	178		10	67	7	25	1	-	-
guaranteed
Agency commercial MBS		11,731			45		11,340		11,777		104	437		32	100	-	-	-	-	-
Supranational		5,484			5		7,121		7,176		101	55		46	100	-	-	-	-	-
Foreign covered bonds		5,598			14		5,777		5,841		101	64		35	99	1	-	-	-	-
U.S. government agencies		5,056			8		5,566		5,646		101	80		21	100	-	-	-	-	-
CLOs		4,432			44		4,707		4,657		99	(50)		100	99	-	-	-	-	1
Foreign government		3,575			4		3,924		3,967		101	43		29	94	6	-	-	-	-
agencies
Other asset-backed		2,743			8		2,903		2,930		101	27		25	99	-	-	1	-	-
securities
Non-agency commercial		2,602			34		2,565		2,684		105	119		23	100	-	-	-	-	-
MBS
Non-agency RMBS (d)		1,672			14		1,864		2,013		108	149		55	60	5	2	20	-	13
State and political		1,196			(1)		1,676		1,705		102	29		1	83	13	3	-	-	1
subdivisions
Corporate bonds		831			-		988		1,030		104	42		-	19	64	17	-	-	-
Commercial paper and
certificates of deposits		3,392			(4)		650		652		100	2		55	-	-	-	-	100	-
(e)(f)
Other		1			-		1		1		100	-		-	-	-	-	-	-	100
Total securities	$	154,233 (g)	$	309	$	151,792	$	155,051	(g)(h)	102 % $	3,259	(g)(i)	27 %	95 %	2 %	3 %	- %	- %	- %

1. Amortized cost reflects historical impairments.
2. Includes the impact of hedges.
3. Represents ratings by S&P, or the equivalent.
4. Includes RMBS that were included in the former Grantor Trust of $538 million at June 30, 2020 and $512 million at Sept. 30, 2020.
5. Includes amounts purchased from affiliated money market funds of $1,853 million at June 30, 2020 and $357 million at Sept. 30, 2020.
6. Includes amounts funded by borrowings from the Federal Reserve Bank under its Money Market Mutual Fund Liquidity Facility program of $1,539 million at June 30, 2020 and $295 million at Sept. 30, 2020.
7. Includes net unrealized losses on derivatives hedging securities available-for-sale (including terminated hedges) of $1,817 million at June 30, 2020 and $1,650 million at Sept. 30, 2020.
8. The fair value of available-for-sale securities totaled $107,593 million at Sept. 30, 2020, net of hedges, or 69% of the fair value of the securities portfolio, net of hedges. The fair value of the held-to- maturity securities totaled $47,458 million at Sept. 30, 2020, or 31% of the fair value of the securities portfolio, net of hedges.
9. Includes unrealized gains of $1,897 million at Sept. 30, 2020 related to available-for-sale securities, net of hedges, and $1,362 million related to held-to-maturity securities.

Note: The amortizable purchase premium (net of discount) relating to securities was $1,917 million at Sept. 30, 2020 and the 3Q20 amortization of that purchase premium was $152 million in 3Q20.

14

THE BANK OF NEW YORK MELLON CORPORATION

ALLOWANCE FOR CREDIT LOSSES AND NONPERFORMING ASSETS

				2020						2019
(dollars in millions)		Sept. 30		June 30		March 31				Dec. 31		Sept. 30
Allowance for credit losses - beginning of period:
Allowance for loan losses	$	302	$	140	$	122	$	127	$	146
Allowance for lending-related commitments		152		148		94				97		95
Allowance for other financial instruments		21	(a)	41	(a)	N/A				N/A		N/A
Allowance for credit losses - beginning of period	$	475	$	329	$	216	$	224	$	241
Impact of adopting ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit		N/A		N/A		(55)	(b)	N/A		N/A
Losses on Financial Instruments, effective Jan. 1, 2020
Net recoveries (charge-offs):
Charge-offs		-		-		(1)				(1)		(1)
Recoveries		2		3		-				1		-
Total net recoveries (charge-offs)		2		3		(1)				-		(1)
Provision for credit losses		9	(b)	143	(b)	169	(b)	(8)		(16)
Allowance for credit losses - end of period	$	486	$	475	$	329	$	216	$	224
Allowance for credit losses - end of period:
Allowance for loan losses	$	325	$	302	$	140	$	122	$	127
Allowance for lending-related commitments		135		152		148				94		97
Allowance for other financial instruments		26	(a)	21	(a)	41	(a)	N/A		N/A
Allowance for credit losses - end of period	$	486	$	475	$	329	$	216	$	224
Allowance for loan losses as a percentage of total loans		0.59 %		0.55 %		0.22 %				0.22 %		0.23 %
Nonperforming assets	$	84	$	88	$	88	$	89	$	88

1. 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.
2. Includes all instruments within the scope of ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments.

N/A - Not applicable.

15

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 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 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)		3Q20		2Q20		1Q20		4Q19		3Q19			YTD20		YTD19
Net income applicable to common shareholders of The Bank of New York Mellon Corporation - GAAP	$	876	$	901	$	944	$	1,391	$	1,002	$	2,721	$	2,881
Add: Amortization of intangible assets		26		26		26		28		30			78		89
Less: Tax impact of amortization of intangible assets		7		6		6		7		7			19		21
Adjusted net income applicable to common shareholders of The Bank of New York Mellon	$	895	$	921	$	964	$	1,412	$	1,025	$	2,780	$	2,949
Corporation, excluding amortization of intangible assets - Non-GAAP
Average common shareholders' equity	$	39,924	$	38,476	$	37,664	$	37,842	$	37,597	$	38,693	$	37,392
Less: Average goodwill		17,357		17,243		17,311		17,332		17,267			17,304		17,328
Average intangible assets		3,039		3,058		3,089		3,119		3,141			3,062		3,176
Add: Deferred tax liability - tax deductible goodwill		1,132		1,119		1,109		1,098		1,103			1,132		1,103
Deferred tax liability - intangible assets		666		664		666		670		679			666		679
Average tangible common shareholders' equity - Non-GAAP	$	21,326	$	19,958	$	19,039	$	19,159	$	18,971	$	20,125	$	18,670
Return on common equity - GAAP		8.7 %		9.4 %		10.1 %		14.6 %		10.6 %			9.4 %		10.3 %
Return on tangible common equity - Non-GAAP		16.7 %		18.5 %		20.4 %		29.3 %		21.4 %			18.5 %		21.1 %

16

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				2020						2019
(dollars in millions, except common shares)		Sept. 30		June 30		March 31			Dec. 31	Sept. 30
BNY Mellon shareholders' equity at period end - GAAP	$	44,917	$	43,697	$	41,145	$	41,483	$	41,120
Less: Preferred stock		4,532		4,532		3,542			3,542		3,542
BNY Mellon common shareholders' equity at period end - GAAP		40,385		39,165		37,603			37,941		37,578
Less: Goodwill		17,357		17,253		17,240			17,386		17,248
Intangible assets		3,026		3,045		3,070			3,107		3,124
Add: Deferred tax liability - tax deductible goodwill		1,132		1,119		1,109			1,098		1,103
Deferred tax liability - intangible assets		666		664		666			670		679
BNY Mellon tangible common shareholders' equity at period end - Non-GAAP	$	21,800	$	20,650	$	19,068	$	19,216	$	18,988
Period-end common shares outstanding (in thousands)		886,136		885,862		885,443			900,683		922,199
Book value per common share - GAAP	$	45.58	$	44.21	$	42.47	$	42.12	$	40.75
Tangible book value per common share - Non-GAAP	$	24.60	$	23.31	$	21.53	$	21.33	$	20.59

Net interest margin reconciliation
(dollars in millions)		3Q20		2Q20		1Q20		4Q19		3Q19
Net interest revenue - GAAP	$	703	$	780	$	814	$	815	$	730
Add: Tax equivalent adjustment		2		2		2		2		3
Net interest revenue (FTE) - Non-GAAP	$	705	$	782	$	816	$	817	$	733
Average interest-earning assets	$	357,634	$	357,562	$	323,936	$	297,987	$	294,154
Net interest margin - GAAP (a)		0.79 %		0.88 %		1.01 %		1.09 %		0.99 %
Net interest margin (FTE) - Non-GAAP(a)		0.79 %		0.88 %		1.01 %		1.09 %		1.00 %
(a) Net interest margin is annualized.

17

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)		3Q20		2Q20		1Q20		4Q19		3Q19			YTD20		YTD19
Income before income taxes - GAAP	$	245	$	221	$	194	$	240	$	295	$	660	$	821
Total revenue - GAAP	$	918	$	886	$	898	$	971	$	887	$	2,702	$	2,736
Less: Distribution and servicing expense		85		86		91		93		98			262		283
Adjusted total revenue, net of distribution and servicing expense - Non-GAAP	$	833	$	800	$	807	$	878	$	789	$	2,440	$	2,453
Pre-tax operating margin - GAAP (a)		27 %		25 %		22 %		25 %		33 %			24 %		30 %
Adjusted pre-tax operating margin, net of distribution and servicing expense - Non-GAAP(a)		29 %		28 %		24 %		27 %		37 %			27 %		33 %
(a) Income before income taxes divided by total revenue.
Constant currency reconciliations						3Q20 vs.
(dollars in millions)		3Q20		3Q19		3Q19
Consolidated:
Investment management and performance fees - GAAP	$	835	$	832		- %
Impact of changes in foreign currency exchange rates		-		11
Adjusted investment management and performance fees - Non-GAAP	$	835	$	843		(1)%
Investment and Wealth Management business:
Investment management and performance fees - GAAP	$	835	$	832		- %
Impact of changes in foreign currency exchange rates		-		11
Adjusted investment management and performance fees - Non-GAAP	$	835	$	843		(1)%

18