BNY Mellon Reports Fourth Quarter Continuing EPS of $0.59 or $712 Million; Net Benefit of $0.04 Due To: - Discrete tax benefit and securities gains partially offset by a restructuring charge related to global efficiency initiatives and M&I expenses

ASSET AND WEALTH MANAGEMENT FEES +13% SEQUENTIALLY

- $14 billion of net long-term asset flows

- Completed acquisition of Insight Investment Management

- Improved investment performance

SUCCESSFULLY COMPLETED RESTRUCTURING OF INVESTMENT SECURITIES PORTFOLIO

CAPITAL RATIOS REMAIN STRONG

- Tier 1 12.0%, Tier 1 Common 10.5%, TCE 5.2%

NEW YORK, Jan. 20 /PRNewswire-FirstCall/ -- The Bank of New York Mellon Corporation (NYSE: BK) today reported fourth quarter income from continuing operations applicable to common shareholders of $712 million, or $0.59 per common share, compared with $50 million, or $0.04 per common share, in the fourth quarter of 2008 and a loss of $2.439 billion, or $2.04 per common share, in the third quarter of 2009.

"We saw excellent growth in asset and wealth management revenues this quarter, which benefited from long-term flows, the contribution from Insight Investment Management, higher equity values and stronger investment performance.  However, the persistent low interest rate environment globally increasingly challenged our net interest revenue and fee revenue," said Robert P. Kelly, chairman and chief executive officer of BNY Mellon.

"In 2009, we completed our merger, raised equity and repaid TARP, successfully completed the restructuring of our investment securities portfolio and ended the year with strong capital ratios.  I want to thank all of our employees, as our accomplishments in a very challenging year reflect their excellent work and dedication," added Mr. Kelly.

The net loss from continuing operations applicable to common shareholders totaled $1.097 billion, or $0.93 per common share, for the full year 2009 compared to net income of $1.398 billion, or $1.21 per common share, for the full year 2008.  Net loss applicable to common shareholders, including discontinued operations, for the full-year 2009 totaled $1.367 billion, or $1.16 per common share, compared to net income of $1.386 billion, or $1.20 per common share, for the full-year 2008.

Fourth Quarter Results - Unless otherwise noted, all comments begin with the results of the fourth quarter of 2009 and are compared to the fourth quarter of 2008, all information is reported on a continuing operations basis and sequential growth rates are unannualized.  Please refer to the Quarterly Earnings Review for detailed business segment information.

Total revenue



    -----------------------------------------------------------------------
    Reconciliation of total revenue                            4Q09 vs.
    (dollar amounts in                                       ------------
     millions)                      4Q09     3Q09     4Q08   4Q08    3Q09
    -----------------------------------------------------------------------
    Fee and other revenue –
     GAAP                         $2,595  $(2,216)  $1,817    N/M     N/M
    Less: Investment
     securities gains (losses)        15   (4,833)  (1,241)   N/M     N/M
    -----------------------------------------------------------------------
      Total fee revenue – GAAP     2,580    2,617    3,058    (16)%    (1)%
    Net interest revenue –
     GAAP                            724      716    1,047    (31)      1
    -----------------------------------------------------------------------
      Total revenue excluding
       investment securities
       gains (losses) – Non-GAAP  $3,304   $3,333   $4,105    (20)%    (1)%
    -----------------------------------------------------------------------
    N/M – Not meaningful

  • Assets under custody and administration amounted to $22.3 trillion at Dec. 31, 2009, an increase of 10% compared with the prior year and an increase of 1% sequentially.  The year-over-year increase reflects higher market values, and new business wins, while the sequential increase primarily reflects higher market values.  Assets under management, excluding securities lending assets, amounted to $1.115 trillion at Dec. 31, 2009.  This represents an increase of 20% compared with the prior year, and a 15% sequential increase.  Both increases were primarily due to the acquisition of Insight Investment Management ("Insight") in the fourth quarter of 2009.  Net long-term inflows of $14 billion in the fourth quarter of 2009 were more than offset by $22 billion of short-term outflows.

  • Securities servicing fees, excluding securities lending fee revenue, totaled $1.212 billion, a decrease of $54 million year-over-year and an increase of $17 million sequentially.  A year-over-year increase in asset servicing revenue was offset by lower clearing and issuer services revenue.  Sequentially, higher asset servicing and issuer services revenue were primarily offset by lower clearing revenue.  Comparisons to both prior periods were negatively impacted by lower money market distribution fees.  Securities lending fee revenue totaled $29 million in the fourth quarter of 2009 compared with $187 million in the prior year period and $43 million sequentially.  The year over year and sequential decreases reflect lower spreads and volumes.

  • Asset and wealth management fees totaled $736 million, an increase of 5% compared with the prior year period and 13% sequentially.  Both increases reflect the impact of the Insight acquisition, stronger investment performance and improved market values, partially offset by a reduction in money market related fees due to outflows in money market products and higher fee waivers.  The sequential increase also reflects positive long-term net inflows of $14 billion.  Asset and wealth management fees, excluding performance fees, increased 4% sequentially.

  • Foreign exchange and other trading activities totaled $246 million, a decrease of 52% compared with a record $510 million in the prior year period and unchanged compared with the third quarter of 2009.  The decrease year-over-year primarily reflects lower foreign exchange revenue, driven by lower volatility and spreads, as well as a lower valuation of the credit derivatives used to hedge the loan portfolio.  The sequential results reflect higher foreign exchange revenue and lower mark to market adjustments on credit default swaps, offset by lower fixed income trading revenue.

  • Investment income totaled $78 million, increasing $33 million year-over-year and decreasing $43 million sequentially.  The increase compared with the prior year period reflects higher seed capital and private equity investment revenue, partially offset by lower lease residual gains.  The sequential decrease primarily reflects lower lease residual gains.

  • Net interest revenue (FTE) totaled $729 million with a net interest margin of 1.77% compared with $721 million and 1.85%, sequentially.

  • Investment securities pre-tax net gains totaled $15 million compared to pre-tax net losses of $1.241 billion in the fourth quarter of 2008 and $4.833 billion in the third quarter of 2009.

The provision for credit losses decreased to $65 million in the fourth quarter of 2009 compared with $147 million in the third quarter of 2009.  The decrease in the provision reflects a lower number of downgrades in the fourth quarter of 2009.  During the fourth quarter of 2009, the total allowance for credit losses increased $32 million and net charge-offs totaled $33 million.

Total noninterest expense



    ---------------------------------------------------------------------
    Reconciliation of noninterest expense                       4Q09 vs.
    (dollar amounts in                                        -----------
     millions)                       4Q09     3Q09     4Q08   4Q08   3Q09
    ---------------------------------------------------------------------
    Noninterest expense – GAAP     $2,582   $2,318   $2,859   (10)%   11%
    Restructuring charges
     (See page 10)                    139       (5)     181   N/M    N/M
    Support agreement charges          (5)      13      163   N/M    N/M
    M&I expenses                       52       54       97   (46)    (4)
    Amortization of intangible
     assets                           107      104      113    (5)     3
    ---------------------------------------------------------------------
      Total noninterest expense,
       excluding restructuring
       charges, support agreement
       charges, M&I expenses and
       intangible amortization –
       Non-GAAP                    $2,289   $2,152   $2,305    (1)%    6%
    ---------------------------------------------------------------------
    N/M – Not meaningful.

  • Total noninterest expense (excluding restructuring charges, support agreement charges, M&I expenses and intangible amortization) decreased 1% compared with the prior year period and increased 6% sequentially.  The decrease compared with the prior year reflects the impact of merger related synergies and the workforce reduction program announced in the fourth quarter of 2008, primarily offset by expenses relating to the Insight acquisition.  The sequential increase principally reflects a seasonal increase in business development expense, the Insight acquisition, employee benefit adjustments, and higher legal and FDIC expenses.

Results for the fourth quarter of 2009 include a net income tax benefit of $41 million which consists primarily of a $51 million benefit from a higher proportion of foreign earnings, as well as a $133 million benefit from discrete tax items primarily related to a tax loss on mortgages.  Excluding the impact of the restructuring charges, M&I expenses, securities gains and the discrete tax benefit, the effective tax rate was approximately 22% (Non-GAAP) in the fourth quarter of 2009.

The unrealized net of tax losses on our investment securities portfolio was $783 million at Dec. 31, 2009 compared with a net of tax unrealized loss of $1.0 billion at Sept. 30, 2009.



    ------------------------------------------------------------------------
    Capital ratios (a)                         Dec. 31,  Sept. 30,  Dec. 31,
                                                 2009       2009      2008
    ------------------------------------------------------------------------
    Tier 1 capital ratio                         12.0%      11.4%     13.2%
    Tier 1 common equity to risk-weighted
     assets ratio (b)                            10.5        9.9       9.4
    Total (Tier 1 plus Tier 2) capital ratio     15.9       15.3      16.9
    Leverage capital ratio                        6.5        6.5       6.9
    Common shareholders' equity to assets
     ratio (b)                                   13.7       13.3      10.6
    Tangible common shareholders' equity to
     tangible assets ratio – Non-GAAP (b)         5.2        5.2       3.8
    ------------------------------------------------------------------------
    (a) Includes discontinued operations.
    (b) See the Supplemental information section beginning on page 10 for a
        calculation of these ratios.

Nonperforming assets totaled $550 million, a decrease of $10 million compared with Sept. 30, 2009.

Declaration of quarterly dividend – On Jan. 20, 2010, The Bank of New York Mellon Corporation declared a quarterly common stock dividend of $0.09 per common share.  This cash dividend is payable on Feb. 9, 2010 to shareholders of record as of the close of business on Feb. 1, 2010.

BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets.  BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team.  It has $22.3 trillion in assets under custody and administration, $1.1 trillion in assets under management, services $12.0 trillion in outstanding debt and processes global payments averaging $1.6 trillion per day.  Additional information is available at www.bnymellon.com.

Supplemental Financial Information

The Quarterly Earnings Review and supplemental financial trends for The Bank of New York Mellon Corporation have been updated through Dec. 31, 2009 and are available at www.bnymellon.com (Investor Relations - Financial Reports).

Conference Call Data

Robert P. Kelly, chairman and chief executive officer; Gerald L. Hassell, president; and Thomas P. Gibbons, chief financial officer, along with other members of executive management from BNY Mellon, will host a conference call and simultaneous live audio webcast at 8:00 a.m. EST on Wednesday, Jan. 20, 2010.  This conference call and audio webcast will include forward-looking statements and may include other material information.  Persons wishing to access the conference call and audio webcast may do so by dialing (888) 677-5383 (U.S.) and (210) 838-9221 (International) Passcode: Earnings, or by logging on to www.bnymellon.com.  The Earnings Release, together with the Quarterly Earnings Review and supplemental financial trends, will be available at www.bnymellon.com beginning at approximately 6:30 a.m. EST on Jan. 20, 2010.  Replays of the conference call and audio webcast will be available beginning Jan. 20, 2010 at approximately 2:00 p.m. EST through Wednesday, Feb. 3, 2010 by dialing (800) 664-4219 (U.S.) or (203) 369-3307 (International). The archived version of the conference call and audio webcast will also be available at www.bnymellon.com for the same time period.



                       THE BANK OF NEW YORK MELLON CORPORATION
                                 Financial Highlights
    ----------------------------------------------------------------------
                                                    Quarter ended
    (dollar amounts in millions,          --------------------------------
     except per common share amounts      Dec. 31,  Sept. 30,     Dec. 31,
     and unless otherwise noted)            2009       2009        2008
    ----------------------------------------------------------------------
    Continuing operations
    ---------------------
    Return on common equity
     (annualized)(a)                        9.8%       N/M        0.8% (b)
      Non-GAAP adjusted (a)                10.1%      10.0%      16.8% (b)

    Return on tangible common equity
     (annualized) – Non-GAAP (a)           33.0%       N/M        6.5% (b)
      Non-GAAP adjusted (a)                31.0%      31.8%      61.3% (b)

    Fee and other revenue as a percent
     Of total revenue (a)                    78%       N/M         63%
      Non-GAAP adjusted (a)                  78%        79%        74%

    Annualized fee revenue per employee
     (based on average headcount) (in
     thousands)                            $243       $248       $285

    Percent of non-U.S. fee and net
     Interest revenue                        36%        31%        31%

    Pre-tax operating margin (a)             20%       N/M        (2)%
      Non-GAAP adjusted (a)                  29%        32%        43%

    Net interest margin (FTE) (d)          1.77%      1.85%      2.32%

    Selected average balances
    -------------------------
      Interest-earning assets (e)      $164,075   $155,159   $181,639
      Total assets                     $214,205   $205,786   $243,962
      Interest-bearing deposits (e)     $98,404    $93,632    $95,726
      Noninterest-bearing deposits (e)  $34,991    $34,920    $51,729
      Total shareholders' equity        $28,843    $28,144    $28,771

    Average common shares and
     equivalents outstanding
     (in thousands):
      Basic                           1,200,359  1,197,414  1,144,839
      Diluted (f)                     1,203,469  1,197,414  1,146,127

    Period-end data
    ---------------
    Assets under custody and
     administration (in trillions)        $22.3      $22.1      $20.2
      Cross-border assets (in
       trillions)                          $8.8       $8.6       $7.5
    Market value of securities on loan
     (in billions) (g)                     $247       $299       $326
    Assets under management (in
     billions)                           $1,115       $966       $928

    Employees                            42,200     42,000     42,500

    Book value per common share –
     GAAP(a)                             $23.99     $23.50     $22.00
    Tangible book value per common
     share – Non-GAAP (a)                 $7.90      $7.54      $5.18
    Dividends per common share            $0.09      $0.09      $0.24
    Closing common stock price per
     common share                        $27.97     $28.99     $28.33
    Market capitalization               $33,783    $34,911    $32,536
    ----------------------------------------------------------------------

    ----------------------------------------------------------------------
                                                       Year ended
    (dollar amounts in millions, except per        -------------------
     common share amounts and unless otherwise     Dec. 31,   Dec. 31,
     noted)                                          2009       2008
    ----------------------------------------------------------------------
    Continuing operations
    ---------------------
    Return on common equity (annualized)(a)           N/M        5.0% (b)
      Non-GAAP adjusted (a)                           9.3%      14.2% (b)

    Return on tangible common equity (annualized)
     – Non-GAAP (a)                                   N/M       20.5% (b)

      Non-GAAP adjusted (a)                          32.2%      48.7% (b)

    Fee and other revenue as a percent of
     total revenue (a)                                 62%        79%
      Non-GAAP adjusted (a)                            78%        79%

    Annualized fee revenue per employee (based
     on average headcount) (in thousands)            $242       $290

    Percent of non-U.S. fee and net interest
     revenue                                           32%        33% (c)

    Pre-tax operating margin (a)                      N/M         14%
      Non-GAAP adjusted (a)                            31%        39%

    Net interest margin (FTE) (d)                    1.82%      1.89% (c)

    Selected average balances
    -------------------------
      Interest-earning assets (e)                $160,955   $152,201
      Total assets                               $212,127   $209,955
      Interest-bearing deposits (e)               $98,206    $91,913
      Noninterest-bearing deposits (e)            $36,446    $33,724
      Total shareholders' equity                  $28,476    $28,704

    Average common shares and equivalents
     outstanding (in thousands):
      Basic                                     1,178,907  1,142,239
      Diluted (f)                               1,178,907  1,148,358

    Period-end data
    ---------------
    Assets under custody and administration
     (in trillions)                                 $22.3      $20.2
      Cross-border assets
       (in trillions)                                $8.8       $7.5
    Market value of securities on loan
     (in billions) (g)                               $247       $326
    Assets under management (in billions)          $1,115       $928

    Employees                                      42,200     42,500

    Book value per common share – GAAP(a)          $23.99     $22.00
    Tangible book value per common share –
     Non-GAAP (a)                                   $7.90      $5.18
    Dividends per common share                      $0.51      $0.96
    Closing common stock price per common share    $27.97     $28.33
    Market capitalization                         $33,783    $32,536
    ----------------------------------------------------------------------
    (a) See Supplemental information beginning on page 10 for a
        calculation of these ratios.
    (b) Calculated before extraordinary loss.
    (c) Excluding the SILO/LILO charges, the percentage of non-U.S. fee
        and net interest revenue was 32% and the net interest margin was
        2.21% for the full year of 2008.
    (d) Prior periods calculated on a continuing operations basis, even
        though the balance sheet, in accordance with GAAP, is not restated
        for discontinued operations.
    (e) Excludes the impact of discontinued operations.
    (f) Diluted earnings per share for the three months ended Sept. 30,
        2009 and year ended Dec. 31, 2009 was calculated using average
        basic shares.  Adding back the dilutive shares would result in
        anti-dilution.
    (g) Represents the securities on loan, both cash and non-cash,
        managed by the Asset Servicing segment.



                     THE BANK OF NEW YORK MELLON CORPORATION
                     Condensed Consolidated Income Statement

    --------------------------------------------------------------------------
                                  Quarter ended              Year ended
    (in millions, except  -----------------------------  ------------------
    per common share      Dec. 31,  Sept. 30,  Dec. 31,  Dec. 31,  Dec. 31,
    amounts)                2009       2009      2008      2009      2008
    --------------------------------------------------------------------------
    Fee and other
     revenue
    Securities
     servicing fees:
      Asset servicing       $650       $643     $786 (a)   $2,573   $3,370 (a)
      Issuer services        368        359      388        1,463    1,685
      Clearing services      223        236      279          962    1,065
    --------------------------------------------------------------------------
        Total securities
         servicing fees    1,241      1,238    1,453        4,998    6,120
    Asset and wealth
     management fees         736        650      701        2,639    3,218
    Foreign exchange
     and other trading
     activities              246        246      510        1,036    1,462
    Treasury services        134        128      132          519      514
    Distribution and
     servicing                85         94      106          397      421
    Financing-related
     fees                     57         56       44          215      186
    Investment income         78        121       45          226      207
    Other                      3         84       67          111      214
    --------------------------------------------------------------------------
        Total fee revenue  2,580      2,617    3,058       10,141   12,342
    Net securities gains
     (losses)                 15     (4,833)  (1,241)      (5,369)  (1,628)
    --------------------------------------------------------------------------
        Total fee and other
         revenue           2,595     (2,216)   1,817        4,772   10,714
    Net interest revenue
    Interest revenue         854        829    1,525        3,507    5,524
    Interest expense         130        113      478          592    2,665
    --------------------------------------------------------------------------
        Net interest
         revenue             724        716    1,047        2,915    2,859
    Provision for credit
     losses                   65        147       54          332      104
    --------------------------------------------------------------------------
        Net interest
         revenue after
         provision for
         credit losses       659        569      993        2,583    2,755
    Noninterest expense
    Staff                  1,221      1,157    1,180 (a)    4,700    5,189 (a)
    Professional, legal
     and other purchased
     services                278        265      273 (a)    1,017    1,021 (a)
    Net occupancy            141        142      141          564      570
    Distribution and
     servicing               109        104      123          426      517
    Software                  98         95       86          367      331
    Sub-custodian and
     clearing                 83         80       84 (a)      320      335 (a)
    Furniture and
     equipment                80         76       86          309      323
    Business development      76         45       76          214      278
    Other                    198        201      419          837    1,822
    --------------------------------------------------------------------------
        Subtotal           2,284      2,165    2,468        8,754   10,386
    Amortization of
     intangible assets       107        104      113          426      473
    Restructuring charges    139         (5)     181          150      181
    Merger and integration
     expenses:
      The Bank of New York
       Mellon Corporation     52         54       97          233      471
      Acquired Corporate
       Trust Business          -          -        -            -       12
    --------------------------------------------------------------------------
        Total noninterest
         expense           2,582      2,318    2,859        9,563   11,523
    --------------------------------------------------------------------------
    Income
    Income (loss) from
     continuing operations
     before income
     taxes                   672     (3,965)     (49)      (2,208)   1,946
    Provision (benefit)
     for income taxes        (41)    (1,527)    (137)      (1,395)     491
    --------------------------------------------------------------------------
        Income (loss) from
         continuing
         operations          713     (2,438)      88         (813)   1,455
    Discontinued
     operations:
      Income (loss) from
       discontinued
       operations           (183)       (29)       7         (421)      28
      Provision (benefit)
       for income
       taxes                 (64)       (10)       3         (151)      14
    --------------------------------------------------------------------------
        Income (loss) from
         discontinued
         operations,
         net of tax         (119)       (19)       4         (270)      14
    Extraordinary (loss)
     on consolidation
     of commercial paper
     conduits, net of
     tax                       -          -      (26)           -      (26)
    --------------------------------------------------------------------------
        Net income
         (loss)              594     (2,457)      66       (1,083)   1,443
    Net (income) loss
     attributable to
     noncontrolling
     interests, net of
     tax                      (1)        (1)      (5)          (1)     (24)
    Redemption charge
     and preferred
     dividends                 -          -      (33)        (283)     (33)
    --------------------------------------------------------------------------
        Net income (loss)
         applicable to
         common
         shareholders
         of The Bank of
         New York Mellon
         Corporation        $593    $(2,458)     $28      $(1,367)  $1,386
    --------------------------------------------------------------------------
    (a) See page 10 for an explanation of prior period income statement
        adjustments.



                     THE BANK OF NEW YORK MELLON CORPORATION
               Condensed Consolidated Income Statement - continued

    ----------------------------------------------------------------------
    Earnings per share
    applicable to the common
    shareholders of The
    Bank of New York
    Mellon Corporation           Quarter ended             Year ended
    (in millions, except -----------------------------  ------------------
    per common share     Dec. 31,  Sept. 30,  Dec. 31,  Dec. 31,  Dec. 31,
    amounts)               2009       2009      2008      2009      2008
    ----------------------------------------------------------------------
    Basic:
      Income (loss)
       from continuing
       operations         $0.59     $(2.04)      $0.04   $(0.93)    $1.21
      Income (loss)
       from discontinued
       operations, net
       of tax             (0.10)     (0.02)          -    (0.23)     0.01
      Extraordinary
       (loss), net of
        tax                   -          -       (0.02)       -     (0.02)
    ----------------------------------------------------------------------
        Net income
         (loss)
         applicable to
         common stock     $0.49     $(2.05)(a)  $ 0.02   $(1.16)    $1.20
    ----------------------------------------------------------------------
    Diluted: (b)
      Income (loss)
       from continuing
       operations         $0.59     $(2.04)      $0.04   $(0.93)    $1.21
      Income (loss)
       from discontinued
       operations, net
       of tax             (0.10)     (0.02)          -    (0.23)     0.01
      Extraordinary
       (loss), net
        of tax                -          -       (0.02)       -     (0.02)
    ----------------------------------------------------------------------
        Net income (loss)
         applicable to
         common stock     $0.49     $(2.05)(a)   $0.02   $(1.16)    $1.20
    ----------------------------------------------------------------------
    (a) Does not foot due to rounding.
    (b) Diluted earnings per share for the three months ended Sept. 30,
        2009 and the full-year ended Dec. 31, 2009, was calculated using
        average basic shares.  Adding back the dilutive shares would result
        in anti-dilution.



    --------------------------------------------------------------------------
    Reconciliation of net income
    (loss) from continuing
    operations applicable to
    the common shareholders          Quarter ended             Year ended
    of The Bank of New York  -----------------------------  ------------------
    Mellon Corporation       Dec. 31,  Sept. 30,  Dec. 31,  Dec. 31,  Dec. 31,
    (in millions)               2009     2009       2008     2009      2008
    --------------------------------------------------------------------------
    Income (loss) from
     continuing operations      $713  $(2,438)       $88    $(813)    $1,455
    Net (income) loss
     attributable to
     noncontrolling
     interests, net of tax        (1)      (1)        (5)      (1)       (24)
    Redemption charge and
     preferred dividends           -        -        (33)    (283)       (33)
    --------------------------------------------------------------------------
      Income (loss) from
       continuing operations
       applicable to common
       shareholders of The
       Bank of New York Mellon
       Corporation, net of tax   712   (2,439)        50   (1,097)     1,398
    Income (loss) from
     discontinued operations,
     net of tax                 (119)     (19)         4     (270)        14
    Extraordinary (loss),
     net of tax                    -        -        (26)       -        (26)
    --------------------------------------------------------------------------
      Net income (loss)
       applicable to the
       common shareholders
       of The Bank of New
       York Mellon
       Corporation              $593  $(2,458)       $28  $(1,367)    $1,386
    --------------------------------------------------------------------------



                       THE BANK OF NEW YORK MELLON CORPORATION
                             Consolidated Balance Sheet

    -----------------------------------------------------------------------
    (dollar amounts in millions, except         Dec. 31,          Dec. 31,
    per share amounts)                            2009              2008
    -----------------------------------------------------------------------
    Assets
    Cash and due from:
      Banks                                      $3,671            $4,881
      Federal Reserve and other central banks
       (includes $7,362 and $53,270 of
       interest-bearing deposits)                 7,423            53,278
    Other short-term investments - U.S.
     government-backed commercial paper, at
     fair value                                       -             5,629
    Interest-bearing deposits with banks         56,302            39,126
    Federal funds sold and securities
     purchased under resale agreements            3,535             2,000
    Securities:
      Held-to-maturity (fair value of $4,240
       and $6,333)                                4,417             7,371
      Available-for-sale                         51,632            32,064
    -----------------------------------------------------------------------
        Total securities                         56,049            39,435
    Trading assets                                6,001            11,102
    Loans                                        36,689            43,394
    Allowance for loan losses                      (503)             (415)
    -----------------------------------------------------------------------
        Net loans                                36,186            42,979
    Premises and equipment                        1,602             1,686
    Accrued interest receivable                     639               619
    Goodwill                                     16,249            15,898
    Intangible assets                             5,588             5,856
    Other assets                                 16,737            15,023
    Assets of discontinued operations             2,242                 -
    -----------------------------------------------------------------------
          Total assets                         $212,224          $237,512
    -----------------------------------------------------------------------
    Liabilities
    Deposits:
      Noninterest-bearing (principally
       domestic offices)                        $33,477           $55,816
      Interest-bearing deposits in domestic
       offices                                   32,944            32,386
      Interest-bearing deposits in foreign
       offices                                   68,629            71,471
    -----------------------------------------------------------------------
        Total deposits                          135,050           159,673
    Borrowing from Federal Reserve related to
     asset-backed commercial paper,
     at fair value                                    -             5,591
    Federal funds purchased and securities
     sold under repurchase agreements             3,348             1,372
    Trading liabilities                           6,396             8,085
    Payables to customers and broker-dealers     10,721             9,274
    Commercial paper                                 12               138
    Other borrowed funds                            477               755
    Accrued taxes and other expenses              4,484             4,052
    Other liabilities (including allowance for
     lending related commitments of $125
     and $114)                                    3,891             4,618
    Long-term debt                               17,234            15,865
    Liabilities of discontinued operations        1,608                 -
    -----------------------------------------------------------------------
          Total liabilities                     183,221           209,423
    -----------------------------------------------------------------------
    Equity
    Preferred stock – par value $0.01 per
     share; authorized 100,000,000 shares;
     issued - shares and 3,000,000 shares             -             2,786
    Common stock-par value $0.01 per common
     share; authorized 3,500,000,000 common
     shares; issued 1,208,861,641 and
     1,148,507,561 common shares                     12                11
    Additional paid-in capital                   21,917            20,432
    Retained earnings                             8,912            10,250
    Accumulated other comprehensive loss,
     net of tax                                  (1,835)           (5,426)
    Less:  Treasury stock of 1,026,927 and
     40,262 common shares, at cost                  (29)               (3)
    -----------------------------------------------------------------------
        Total The Bank of New York Mellon
         Corporation shareholders' equity        28,977            28,050
    Noncontrolling interest                          26                39
    -----------------------------------------------------------------------
        Total equity                             29,003            28,089
    -----------------------------------------------------------------------
        Total liabilities and equity           $212,224          $237,512
    -----------------------------------------------------------------------

Investment Securities Portfolio

At Dec. 31, 2009, the fair value of our investment securities portfolio totaled $55.9 billion.  The unrealized pre-tax loss on our securities portfolio was $1.2 billion at Dec. 31, 2009 compared with $1.4 billion at Sept. 30, 2009 and $7.6 billion at Dec. 31, 2008.

In the fourth quarter of 2009, we securitized $5.0 billion, fair value, of our investment securities portfolio into a Grantor Trust.  The Grantor Trust contains Alt-A, prime and subprime RMBS which were previously written down to fair value as part of the 3Q09 restructuring of the investment securities portfolio.  As a result of this transaction, we received $771 million in cash for a Class A senior tranche that was sold to third parties and retained Class B certificates with a fair value of $4.2 billion, which is included in the tables below.  The transaction resulted in a $39 million net loss in the fourth quarter of 2009, which was offset by $54 million of net gains on the sale of $3.6 billion of investment securities.  The following table presents the fourth quarter 2009 activity related to restructuring and reducing risk in the investment securities portfolio.



    -------------------------------------------------------------------------
    Investment securities portfolio
    rollforward of 4Q09 activity   Amortized  Paydowns/
    (dollar amounts                 cost at   accretion/    4Q09    Restruct-
    in millions)                    9/30/09     other    purchases    uring
    -------------------------------------------------------------------------
    Watch list:
    European floating rate notes      $7,092    $(178)        $-        $-
    Commercial MBS                     2,685      (14)         -         -
    Prime RMBS                         4,324     (240)         -    (2,069)
    Alt-A RMBS                         4,619     (158)         -    (2,603)
    Subprime RMBS                      1,158      (20)         -      (128)
    Credit cards                         649       (3)         -         -
    Home equity lines of credit          226      (13)         -         -
    Other                                526       (8)         -         -
    -------------------------------------------------------------------------
      Total Watch list (a)            21,279     (634)         -    (4,800)
    Grantor Trust Class B
     Certificates                          -       23          -     4,969
    Agency RMBS                       16,560     (866)     3,084         -
    Sovereign debt/sovereign
     guaranteed                        6,590     (148)     2,259         -
    U.S. Treasury securities           5,052     (161)     1,463         -
    FDIC-insured debt                  1,962        1          -         -
    Government agency debt             1,241       (6)         -         -
    Other                              2,850      (74)        39         -
    -------------------------------------------------------------------------
      Total investment securities    $55,534  $(1,865)    $6,845      $169
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Investment securities portfolio              4Q09 Sales
    rollforward of 4Q09 activity          ----------------------    Amortized
    (dollar amounts                        Proceeds       Gain/      cost at
     in millions)                         from sales      (loss)     12/31/09
    -------------------------------------------------------------------------
    Watch list:
    European floating rate notes              $(767)        $35      $6,182
    Commercial MBS                             (272)          -       2,399
    Prime RMBS                                  (86)          3       1,932
    Alt-A RMBS                                 (949)        (17)        892
    Subprime RMBS                              (222)          -         788
    Credit cards                                (22)          2         626
    Home equity lines of credit                (264)         51           -
    Other                                       (27)        (15)        476
    -------------------------------------------------------------------------
      Total Watch list (a)                   (2,609)         59       13,295
    Grantor Trust Class B Certificates         (771)        (39)       4,182
    Agency RMBS                                   -           -       18,778
    Sovereign debt/sovereign guaranteed           -           -        8,701
    U.S. Treasury securities                      -           -        6,354
    FDIC-insured debt                             -           -        1,963
    Government agency debt                        -           -        1,235
    Other                                      (265)         (5)       2,545
    -------------------------------------------------------------------------
      Total investment securities           $(3,645)        $15      $57,053
    -------------------------------------------------------------------------



    --------------------------------------------------------------------------
    Investment securities
    portfolio
    Dec. 31, 2009                                       Fair value
                                                         as a % of
    (dollar amounts                Amortized    Fair     amortized  Unrealized
     in millions)                     cost      value    cost (b)  gain/(loss)
    --------------------------------------------------------------------------
    Watch list:
    European floating rate notes      $6,182    $5,503       88%     $(679)
    Commercial MBS                     2,399     2,302       96        (97)
    Prime RMBS                         1,932     1,684       86       (248)
    Alt-A RMBS                           892       779       67       (113)
    Subprime RMBS                        788       470       60       (318)
    Credit cards                         626       610       95        (16)
    Other                                476       465       56        (11)
    --------------------------------------------------------------------------
      Total Watch list (a)            13,295    11,813       84     (1,482)
    Grantor Trust Class B
     Certificates                      4,182     4,160       60        (22)
    Agency RMBS                       18,778    19,016       99        238
    Sovereign debt/sovereign
     guaranteed                        8,701     8,709      100          8
    U.S. Treasury securities           6,354     6,374      100         20
    FDIC-insured debt                  1,963     2,003       98         40
    Government agency debt             1,235     1,260       98         25
    Other                              2,545     2,537      100         (8)
    --------------------------------------------------------------------------
      Total investment securities    $57,053   $55,872       92%   $(1,181)
    --------------------------------------------------------------------------


    ----------------------------------------------------------------------
    Investment securities
    portfolio                                    Ratings
    Dec. 31, 2009             --------------------------------------------
    (dollar amounts           AAA/       A+/      BBB+/   BB+ and     Not
    in millions)              AA-        A-       BBB-     lower     rated
    ----------------------------------------------------------------------
    Watch list:
    European floating
     rate notes                97%        3%        -%        -%        -%
    Commercial MBS             93         4         3         -         -
    Prime RMBS                 60        23         5        12         -
    Alt-A RMBS                 27        15         1        57         -
    Subprime RMBS              75        14         5         6         -
    Credit cards                1        98         1         -         -
    Other                       -         -        16        76         8
    ----------------------------------------------------------------------
      Total Watch list (a)     77        12         2         9         -
    Grantor Trust Class
     B Certificates             -         -         -         -       100
    Agency RMBS               100         -         -         -         -
    Sovereign debt/
     sovereign guaranteed     100         -         -         -         -
    U.S. Treasury
     securities               100         -         -         -         -
    FDIC-insured debt         100         -         -         -         -
    Government agency debt    100         -         -         -         -
    Other                      69        11         7         1        12
    ----------------------------------------------------------------------
      Total investment
       securities              86%        3%        1%        2%        8%
    ----------------------------------------------------------------------
    (a) The "Watch list" includes those securities we view as having a
        higher risk of impairment charges.
    (b) Amortized cost before impairments.

Restructuring charge

As part of an ongoing effort to improve efficiency and develop a global operating model that provides the highest quality of service to our clients, BNY Mellon continues to execute its global location strategy.  This strategy includes migrating positions to our global growth centers and the elimination of certain positions.

In December 2009, we recorded a pre-tax restructuring charge of $139 million, or $0.07 per common share.  This charge was comprised of $102 million for severance costs and $37 million for asset write-offs and other costs.  The restructuring charge is recorded as a separate line on the income statement.

Discontinued operations

In the second quarter of 2009, we adopted discontinued operations accounting for Mellon United National Bank located in Florida.  It was determined that this business no longer fit our strategic focus on our asset management and securities servicing businesses.  In July 2009, we signed a definitive agreement to sell Mellon United National Bank.  The transaction was completed on Jan. 15, 2010.  This business was formerly included in the Other segment.  In the fourth quarter of 2009, we recorded an after-tax loss on discontinued operations of $119 million largely related to additional write-downs primarily for retained South Florida real estate loans.  The value of these loans, which are carried at the lower of cost or market, was $383 million (face value of $635 million) at Dec. 31, 2009.  The after-tax loss of $270 million for the full-year of 2009 primarily reflects the loan write-downs and the elimination of $82 million of goodwill recorded in the second quarter of 2009.

Consolidated net income applicable to common shareholders, including discontinued operations

Net income applicable to common shareholders, including discontinued operations, totaled $593 million, or $0.49 per common share, in the fourth quarter of 2009, compared with $28 million, or $0.02 per common share, in the fourth quarter of 2008 and a net loss of $2.458 billion, or $2.05 per common share, in the third quarter of 2009.

Income statement adjustments

The following reclassifications were made to the income statement in the second quarter 2009.

  • Global sub-custodian out-of-pocket expense related to client reimbursements was reclassified from sub-custodian expense to asset servicing revenue.  This reclassification totaled $4 million in the fourth quarter of 2008 and $22 million in the full-year of 2008.

  • Certain temporary/consulting expenses were reclassified from professional, legal and other purchased services to staff expense.  This reclassification totaled $33 million in the fourth quarter of 2008 and $100 million in the full-year of 2008.

Supplemental information – Explanation of Non-GAAP financial measures

BNY Mellon has included in this release certain Non-GAAP financial measures based upon tangible common shareholders' equity.  BNY Mellon believes that the ratio of tangible common shareholders' equity to tangible assets is a measure of capital strength that adds additional useful information to investors supplementing the Tier 1 capital ratio which is utilized by regulatory authorities.  Unlike the Tier 1 ratio, the tangible common shareholders' equity ratio fully incorporates those changes in investment securities valuations which are reflected in shareholders' equity.  In addition, this ratio is expressed as a percentage of the actual book value of assets, as opposed to a percentage of a risk-based reduced value established in accordance with regulatory requirements, although BNY Mellon in its calculation has excluded certain assets which are given a zero percent risk-weighting for regulatory purposes.  This ratio is also informative to investors in BNY Mellon's common stock because, unlike the Tier 1 capital ratio, it excludes preferred stock and trust preferred securities issued by BNY Mellon.  Further, BNY Mellon believes that the return on tangible common equity measure, which excludes goodwill and intangible assets net of deferred tax liabilities, is a useful additional measure for investors because it presents a measure of BNY Mellon's performance in reference to those assets which are productive in generating income.  

BNY Mellon has provided a measure of tangible book value per share, which it believes provides additional useful information as to the level of such assets in relation to shares of common stock outstanding.  BNY Mellon has presented revenue and earnings measures which exclude the effect of investment securities gains (losses) and SILO/LILO charge; expense measures which exclude restructuring charges, an FDIC special assessment, support agreement charges, asset-based taxes, M&I expenses and intangible amortization expenses; and measures which utilize net income excluding tax items such as the benefit of tax settlements and discrete tax benefits related to a tax loss on mortgages.  Return on equity measures and operating margin measures which exclude some or all of these items are also presented.  BNY Mellon believes that these measures are useful to investors because they permit a focus on period to period comparisons which relate to the ability of BNY Mellon to enhance revenues and limit expenses in circumstances where such matters are within BNY Mellon's control.  The excluded items in general relate to situations where accounting rules require certain ongoing charges as a result of prior transactions, or where valuation or other accounting/regulatory requirements require charges unrelated to operational initiatives.  M&I expenses relates to our Corporate Trust acquisition in 2006 and to the merger with Mellon Financial Corporation in 2007.  M&I expenses generally continue for approximately three years after the transaction, and can vary on a year-to-year basis depending on the stage of the integration.  BNY Mellon believes that the exclusion of M&I expenses provides investors with a focus on BNY Mellon's business as it would appear on a consolidated going-forward basis, after such M&I expenses have ceased, typically after approximately three years.  Future periods will not reflect such M&I expenses, and thus may be more easily compared to our current results if M&I expenses are excluded.  With regards to the exclusion of investment securities gains (losses), BNY Mellon's primary businesses are Asset and Wealth Management and Institutional Services.  The management of these sectors is evaluated on the basis of the ability of these businesses to generate fee and net interest revenue and to control expenses, and not on the results of BNY Mellon's investment securities portfolio.  Management of the investment securities portfolio is a shared service contained in the Other segment.  The primary objective of the investment securities portfolio is to generate net interest revenue from the liquidity generated by BNY Mellon's processing businesses.  BNY Mellon does not generally originate or trade the securities in the investment securities portfolio.  As a result, BNY Mellon believes that presenting measures that exclude investment securities gains (losses) from its results, as a supplement to GAAP information, gives investors a clearer picture of the results of its primary businesses.  The SILO/LILO charges relate to a one-time settlement with the IRS of tax structured lease transactions in 2008.  Restructuring charges relate to migrating positions to global growth centers and the elimination of certain positions.  In this Earnings Release, certain amounts are presented on an FTE basis.  We believe that this presentation provides comparability 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.  

Each of these measures as described above is used by management to monitor financial performance, both on a company-wide and on a business segment basis.



    --------------------------------------------------------------------------
    Reconciliation of net income (loss) and EPS –
     GAAP to Non-GAAP                                           4Q09
                                                        ---------------------
    (in millions, except per common share amounts)      Net income    EPS (a)
    --------------------------------------------------------------------------
    Net income applicable to common shareholders of
     The Bank of New York Mellon Corporation – GAAP        $593        N/A
    Earnings allocated to participating securities (a)       (5)       N/A
    --------------------------------------------------------------------------
    Net income applicable to common shareholders of
     The Bank of New York Mellon Corporation – GAAP –
     Diluted EPS basis                                      588      $0.49
    Less: Discontinued operations (loss)                   (119)     (0.10)
    --------------------------------------------------------------------------
       Continuing operations – GAAP – Diluted
        EPS basis                                           707       0.59
    Net investment securities (gains)                       (31)     (0.03)
    M&I expenses                                             33       0.03
    Restructuring charges                                    86       0.07
    Discrete tax benefits                                  (133)     (0.11)
    --------------------------------------------------------------------------
      Net income from continuing operations applicable
       to common shareholders excluding the investment
       securities (gains), M&I expenses, restructuring
       charges and discrete tax benefits - Non-GAAP         662       0.55
    Intangible amortization                                  66       0.06
    --------------------------------------------------------------------------
      Net income (loss) from continuing operations
       applicable to common shareholders excluding
       the investment securities (gains), M&I expenses,
       restructuring charges, discrete tax benefits and
       intangible amortization – Non-GAAP                  $728      $0.60(b)
    --------------------------------------------------------------------------
    (a) Diluted earnings per share under the two-class method was calculated
        after deducting earnings allocated to participating securities.
    (b) Does not foot due to rounding.
    N/A – Not applicable.



    -------------------------------------------------------------------------
    Securities servicing fees
    (in millions)                                4Q09       3Q09       4Q08
    -------------------------------------------------------------------------
    Securities servicing fees                   $1,241     $1,238     $1,453
    Less: Securities lending fee revenue            29         43        187
    -------------------------------------------------------------------------
      Securities servicing fees excluding
       securities lending fee revenue           $1,212     $1,195     $1,266
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
    Asset and wealth management fee revenue                        4Q09 vs.
                                                                 -----------
    (dollars in millions)                   4Q09   3Q09   4Q08   4Q08   3Q09
    -------------------------------------------------------------------------
    Asset and wealth management fee
     revenue                                $736   $650   $701      5%    13%
    Less: Performance fees                    59      1     44     34    N/M
    -------------------------------------------------------------------------
      Asset and wealth management fee
       revenue excluding performance fees   $677   $649   $657      3%     4%
    -------------------------------------------------------------------------



    -----------------------------------------------------------------------
    Reconciliation of fee and other revenue as a percent of total revenue
    (dollars in millions)         4Q09     3Q09    4Q08     2009     2008
    -----------------------------------------------------------------------
    Fee and other revenue –
     GAAP                       $2,595  $(2,216)  $1,817   $4,772  $10,714
      Less: Investment
       securities gains
       (losses)                     15   (4,833)  (1,241)  (5,369)  (1,628)
    -----------------------------------------------------------------------
    Fee and other revenue
     excluding investment
     securities gains (losses)–
     Non-GAAP                    2,580    2,617    3,058   10,141   12,342

    Net interest revenue – GAAP    724      716    1,047    2,915    2,859
       Less: SILO/LILO charges       -        -        -        -     (489)
    -----------------------------------------------------------------------
    Net interest revenue
     excluding
     SILO/LILO charges –
     Non-GAAP                      724      716    1,047    2,915    3,348
    -----------------------------------------------------------------------
    Total revenue – GAAP        $3,319  $(1,500)  $2,864   $7,687  $13,573
    Total revenue excluding
     investment securities
     gains (losses) and
     SILO/LILO
     charges – Non-GAAP         $3,304   $3,333   $4,105  $13,056  $15,690

    Fee and other revenue as a
     percentage of total revenue    78%     N/M       63%      62%      79%
    Fee and other revenue as a
     percentage of total revenue
     excluding investment
     securities gains (losses)
     and SILO/LILO charges –
     Non-GAAP                       78%      79%      74%      78%      79%
    -----------------------------------------------------------------------
    N/M – Not meaningful.



    -----------------------------------------------------------------------
    Reconciliation of income (loss) from continuing operations before
    income taxes – pre-tax operating margin
    (dollars in millions)         4Q09     3Q09     4Q08     2009     2008
    -----------------------------------------------------------------------
    Income (loss) from continuing
     operations before income
     taxes – GAAP                 $672  $(3,965)    $(49)  $(2,208)  $1,946
       Investment securities
        (gains) losses             (15)   4,833    1,241     5,369    1,628
       SILO/LILO charges             -        -        -         -      489
       Support agreement charges    (5)      13      163       (15)     894
       Asset-based taxes             -       20        -        20        -
       FDIC special assessment       -        -        -        61        -
       M&I expenses                 52       54       97       233      483
       Restructuring charges       139       (5)     181       150      181
       Intangible amortization     107      104      113       426      473
    -----------------------------------------------------------------------
       Income (loss) from
        continuing operations
        before income taxes
        excluding investment
        securities (gains) losses,
        SILO/LILO charges,
        support agreement charges,
        asset-based taxes, FDIC
        special assessment, M&I
        expenses, restructuring
        charges and intangible
        amortization – Non-GAAP   $950   $1,054   $1,746    $4,036   $6,094

    Fee and other revenue –
     GAAP                       $2,595  $(2,216)  $1,817    $4,772  $10,714
    Net interest revenue – GAAP    724      716    1,047     2,915    2,859
    -----------------------------------------------------------------------
       Total revenue – GAAP      3,319   (1,500)   2,864     7,687   13,573
       Add: Investment
             securities
             (gains) losses        (15)   4,833    1,241     5,369    1,628
            SILO/LILO charges        -        -        -         -      489
    -----------------------------------------------------------------------
       Total revenue excluding
        investment securities
        (gains) losses and
        SILO/LILO charges –
        Non-GAAP                $3,304    $3,333  $4,105  $13,056  $15,690

    Pre-tax operating margin (a)    20%      N/M      (2)%    N/M       14%
    Pre-tax operating margin
     excluding investment
     securities (gains) losses,
     SILO/LILO charges, support
     agreement charges, asset-
     based taxes, FDIC special
     assessment, M&I expenses,
     restructuring charges and
     intangible amortization –
     Non-GAAP (a)                   29%       32%     43%      31%      39%
    -----------------------------------------------------------------------
    (a) Income (loss) before taxes divided by total revenue.
    N/M – Not meaningful.



    --------------------------------------------------------------------------
    Return on common equity and tangible common equity – continuing operations
    (dollars in millions)       4Q09     3Q09     4Q08      2009     2008
    --------------------------------------------------------------------------
    Net income (loss)
     applicable to common
     shareholders of
     The Bank of New York
     Mellon Corporation -
     GAAP                       $593  $(2,458)     $28    $(1,367)  $1,386
    Less: Discontinued
     operations income
     (loss), net of tax         (119)     (19)       4       (270)      14
    Extraordinary (loss),
     net of tax                    -        -      (26)         -      (26)
    --------------------------------------------------------------------------
      Net income (loss)
       from continuing
       operations
       applicable to
       common shareholders
       of The Bank of
       New York Mellon
       Corporation               712   (2,439)      50     (1,097)   1,398
    Intangible amortization       66       65       70        265      292
    --------------------------------------------------------------------------
      Net income (loss)
       from continuing
       operations
       applicable to
       common shareholders
       of The Bank of New
       York Mellon
       Corporation
       excluding intangible
       amortization –
       Non-GAAP                  778   (2,374)     120       (832)   1,690
    Investment securities
     (gains) losses              (31)   3,047      752      3,374      983
    SILO/LILO/tax settlements      -        -        -          -      410
    Support agreement charges     (3)       8       97         (9)     533
    FDIC special assessment        -        -        -         36        -
    M&I expenses                  33       34       58        144      288
    Restructuring charges         86       (3)     107         94      107
    Discrete tax benefits and
     the benefit of tax
     settlements                (133)       -        -       (267)       -
    --------------------------------------------------------------------------
    Net income (loss) from
     continuing operations
     excluding investment
     securities (gains) losses,
     SILO/LILO/tax settlements,
     support agreement charges,
     FDIC special assessment,
     M&I expenses, restructuring
     charges, discrete tax
     benefits and the benefit
     of tax settlements and
     intangible amortization –
     Non-GAAP                   $730     $712   $1,134     $2,540   $4,011

    Average common
     shareholders' equity    $28,843  $28,144  $26,812    $27,198  $28,212
    Less: Average goodwill    16,291   16,048   16,121     16,042   16,525
          Average intangible
           assets              5,587    5,608    5,763      5,654    5,896
    Add:  Deferred tax
           liability – tax
           deductible goodwill   720      666      599        720      599
          Deferred tax
           liability – non-tax
           deductible
           intangible assets   1,680    1,717    1,841      1,680    1,841
    --------------------------------------------------------------------------
    Average tangible common
     shareholders' equity –
     Non-GAAP                 $9,365   $8,871   $7,368     $7,902   $8,231

    Return on common equity –
     GAAP (a)                    9.8%     N/M      0.8%(b)    N/M      5.0%(b)
    Return on common equity
     excluding investment
     securities (gains)
     losses, SILO/LILO/tax
     settlements, support
     agreement charges,
     FDIC special assessment,
     M&I expenses,
     restructuring charges,
     discrete tax benefits
     and the benefit of tax
     settlements and
     intangible amortization –
     Non-GAAP (a)               10.1%    10.0%    16.8%(b)    9.3%   14.2%(b)

    Return on tangible common
     equity – Non-GAAP (a)      33.0%     N/M      6.5%(b)    N/M    20.5%(b)
    Return on tangible common
     equity excluding
     investment securities
     (gains) losses,
     SILO/LILO/tax settlements,
     support agreement charges,
     FDIC special assessment,
     M&I expenses,
     restructuring charges
     and discrete tax benefits
     and the benefit of tax
     settlements –
     Non-GAAP (a)               31.0%    31.8%    61.3%(b)   32.2%   48.7%(b)
    --------------------------------------------------------------------------
    (a) Annualized.
    (b) Calculated before extraordinary loss.
    N/M – Not meaningful.



    -----------------------------------------------------------------------
    Equity to assets and book value per common share
    (dollars in millions,                   Dec. 31,  Sept. 30,   Dec. 31,
     unless otherwise noted)                  2009       2009       2008
    -----------------------------------------------------------------------
    Common shareholders' equity at period
     end - GAAP                              $28,977    $28,295    $25,264
    Less: Goodwill                            16,249     16,022     15,898
          Intangible assets                    5,588      5,574      5,856
    Add:  Deferred tax liability – tax
           deductible goodwill                   720        666        599
          Deferred tax liability – non-tax
           deductible intangible assets        1,680      1,717      1,841
    -----------------------------------------------------------------------
    Tangible common shareholders' equity
     at period end – Non-GAAP                 $9,540     $9,082     $5,950

    Total assets at period end - GAAP       $212,224   $212,007   $237,512
    Less: Goodwill                            16,249     16,022     15,898
          Intangible assets                    5,588      5,574      5,856
          Cash on deposit with the Federal
           Reserve and other central
           banks (a)                           7,375     15,003     53,278
          U.S. government-backed commercial
           paper                                   -          -      5,629
    -----------------------------------------------------------------------
    Tangible total assets at period end –
     Non-GAAP                               $183,012   $175,408   $156,851

    Common shareholders' equity to assets –
     GAAP                                       13.7%      13.3%      10.6%
    Tangible common shareholders' equity to
     tangible assets – Non-GAAP                  5.2%       5.2%       3.8%

    Period end common shares outstanding
     (in thousands)                        1,207,835  1,204,244  1,148,467

    Book value per common share               $23.99     $23.50     $22.00
    Tangible book value per common share –
     Non-GAAP                                  $7.90      $7.54      $5.18
    -----------------------------------------------------------------------
    (a) Assigned a zero percent risk weighting by the regulators.



    -----------------------------------------------------------------------
    Calculation of Tier 1 common equity
     to risk-weighted assets ratio (a)      Dec. 31,  Sept. 30,   Dec. 31,
    (dollars in millions)                     2009       2009       2008
    -----------------------------------------------------------------------
    Total Tier 1 capital                     $12,853    $12,543    $15,402
    Less: Trust preferred securities           1,686      1,682      1,654
          Series B preferred stock                 -          -      2,786
    -----------------------------------------------------------------------
    Total Tier 1 common equity               $11,167    $10,861    $10,962

    Total risk-weighted assets              $106,805   $110,135   $116,713

    Tier 1 common equity to risk-weighted
     assets ratio                               10.5%       9.9%       9.4%
    -----------------------------------------------------------------------
    (a) On a regulatory basis.

Cautionary Statement

The information presented in this Earnings Release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements, which may be expressed in a variety of ways, including the use of future or present tense language, relate to, among other things, expectations with respect to BNY Mellon's global location strategy.  These statements and other forward-looking statements contained in other public disclosures of The Bank of New York Mellon Corporation which make reference to the cautionary factors described in this earnings release, are based upon current beliefs and expectations and are subject to significant risks and uncertainties (some of which are beyond BNY Mellon's control).  Factors that could cause BNY Mellon's results to differ materially from those described in the forward-looking statements can be found in the risk factors set forth in BNY Mellon's Annual Report on Form 10-K for the year ended Dec. 31, 2008, the Form 10-Q for the quarter ended March 31, 2009 and BNY Mellon's other filings with the Securities and Exchange Commission.  All forward-looking statements in this earnings release speak only as of Jan. 20, 2010 and BNY Mellon undertakes no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events.

SOURCE The Bank of New York Mellon Corporation



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