BNY Mellon · Earnings release

FINANCIALRESULTS

BNY Reports Fourth Quarter 2024

Earnings Per Common Share of $1.54, or $1.72 as Adjusted (a)

Full-Year 2024 Earnings Per Common Share of $5.80, or $6.03 as Adjusted (a)

NEW YORK, January 15, 2025 – The Bank of New York Mellon Corporation (“BNY”) (NYSE: BK) today has reported financial results for the fourth quarter of 2024.

CEO COMMENTARY

BNY closed out 2024 with a strong performance, delivering record net income of $4.3 billion on record revenue of $18.6 billion and generating a return on tangible common equity of 23% for the year. Significant positive operating leverage resulted in pre-tax margin and profitability expansion, and we returned $4.4 billion of capital to our common shareholders.

Building on the solid foundation laid in 2023, we accelerated the pace of our ongoing transformation in 2024 through consistent execution against our strategic pillars.

We launched a new commercial coverage model, developed new products and solutions for our clients, completed a brand refresh, announced and closed our first acquisition in several years, and commenced the phased transition to our strategic platforms operating model. We also continued to invest in our culture and attracted top talent to further strengthen our team.

We enter 2025 with strong momentum, on the right path to unlock the opportunity embedded in our company. I am proud of our people and thank them for their continued dedication and hard work to be more for our clients, to run our company better, and to power our culture.

– Robin Vince, President and Chief Executive Officer

EPS

Adj. EPS

Pre-tax margin

Adj. Pre-tax margin

ROE

Adj. ROTCE

4Q24 KEY FINANCIAL INFORMATION

(dollars in millions, except per share amounts and unless otherwise noted)

Selected income statement data:

Total fee revenue

$

3

%

9

%

Investment and other revenue

N/M

N/M

Net interest income

8

Total revenue

$

4

%

%

Provision for credit losses

N/M

N/M

Noninterest expense

$

8

%

%

Net income applicable to common shareholders

$

2

%

%

Diluted EPS

$

3

%

%

Selected metrics:

AUC/A (in trillions)

$

—

%

9

%

AUM (in trillions)

$

(5)

%

3

%

Financial ratios:

Pre-tax operating margin

%

%

6

%

ROE

%

%

%

ROTCE (a)

%

%

%

Capital ratios:

Tier 1 leverage ratio

%

%

%

CET1 ratio

%

%

%

Results

•Total revenue of $4.8 billion, increased 11%; or 8% excluding notable items (a)

•Noninterest expense of $3.4 billion, decreased 16%; or increased 2% excluding notable items (a)

•Diluted EPS of $1.54, increased 633%; or 33% excluding notable items (a)

4Q24 Notable items (a)

•Results include $165 million of noninterest expense primarily related to severance and litigation reserves

Profitability

•Pre-tax operating margin of 30%; or 34% excluding notable items (a)

•ROTCE of 23.3% (a); or 26.1% excluding notable items (a)

Balance sheet

•Average deposits of $286 billion, increased 5% year-over-year and 1% sequentially

•Tier 1 leverage ratio of 5.7%, decreased 23 bps year-over-year and 29 bps sequentially

Capital distribution

•Returned $1.1 billion of capital to common shareholders

•$349 million of dividends

•$750 million of share repurchases

(a) For information on the Non-GAAP measures, see “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11.

Note: Above comparisons are 4Q24 vs. 4Q23, unless otherwise noted.

BNY 4Q24 Financial Results

CONSOLIDATED FINANCIAL HIGHLIGHTS

(dollars in millions, except per share amounts and unless otherwise noted; not meaningful - N/M)

Fee revenue

$

$

$

3

%

9

%

Investment and other revenue

N/M

N/M

Total fee and other revenue

1

Net interest income

8

Total revenue

4

Provision for credit losses

N/M

N/M

Noninterest expense

8

Income before taxes

(3)

Provision for income taxes

(6)

Net income

$

$

$

(3)

%

%

Net income applicable to common shareholders of The Bank of New York Mellon Corporation

$

$

$

2

%

%

Operating leverage (a)

bps

bps

Diluted earnings per common share

$

$

$

3

%

%

Average common shares and equivalents outstanding - diluted (in thousands)

Pre-tax operating margin

%

%

6

%

Metrics:

Average loans

$

$

$

—

%

5

%

Average deposits

1

5

AUC/A at period end (in trillions) (current period is preliminary)

—

9

AUM at period end (in trillions) (current period is preliminary)

(5)

3

Non-GAAP measures, excluding notable items: (b)

Adjusted total revenue

$

$

$

4

%

8

%

Adjusted noninterest expense

$

$

$

4%

2

%

Adjusted operating leverage (a)

bps

bps

Adjusted diluted earnings per common share

$

$

$

%

%

Adjusted pre-tax operating margin

%

%

%

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

(b) See “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for additional information.

bps – basis points.

KEY DRIVERS (comparisons are 4Q24 vs. 4Q23, unless otherwise noted)

•Total revenue increased 11%, primarily reflecting:

•Fee revenue increased 9%, primarily reflecting higher market values and client activity, net new business and higher foreign exchange revenue.

•Investment and other revenue increased primarily reflecting a 4Q23 reduction in the fair value of a contingent consideration receivable, partially offset by strategic equity investment gains recorded in 4Q23.

•Net interest income increased 8%, primarily reflecting higher investment securities portfolio yields and balance sheet growth, partially offset by changes in deposit mix.

•Provision for credit losses was $20 million, primarily driven by reserve increases related to commercial real estate exposure.

•Noninterest expense decreased 16% primarily reflecting the net impact of adjustments for the FDIC special assessment, efficiency savings and lower severance expense, partially offset by higher revenue-related expenses, employee merit increases and investments. Excluding notable items, noninterest expense increased 2% (a).

•Effective tax rate of 21.4%.

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

•AUC/A increased 9%, primarily reflecting higher market values, client inflows and net new business, partially offset by the unfavorable impact of a stronger U.S. dollar.

•AUM increased 3%, primarily reflecting higher market values, partially offset by unfavorable impact of a stronger U.S. dollar.

Capital and liquidity

•$349 million of dividends to common shareholders (b); $750 million of common share repurchases.

•Return on common equity (“ROE”) – 12.2%; Adjusted ROE – 13.6% (a).

•Return on tangible common equity (“ROTCE”) – 23.3% (a); Adjusted ROTCE - 26.1% (a).

•Common Equity Tier 1 (“CET1”) ratio – 11.2%.

•Tier 1 leverage ratio – 5.7%.

•Average liquidity coverage ratio (“LCR”) – 115%; Average net stable funding ratio (“NSFR”) – 132%.

•Total Loss Absorbing Capacity (“TLAC”) ratios exceed minimum requirements.

(a) See “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for additional information.

(b) Including dividend-equivalents on share-based awards.

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

2

BNY 4Q24 Financial Results

FULL-YEAR CONSOLIDATED FINANCIAL HIGHLIGHTS

(dollars in millions, except per share amounts; not meaningful - N/M)

Fee revenue

$

$

6

%

Investment and other revenue

N/M

Total fee and other revenue

7

Net interest income

(1)

Total revenue

5

Provision for credit losses

N/M

Noninterest expense

(4)

Income before taxes

Provision for income taxes

Net income

$

$

%

Net income applicable to common shareholders of The Bank of New York Mellon Corporation

$

$

%

Operating leverage (a)

bps

Diluted earnings per common share

$

$

%

Average common shares and equivalents outstanding - diluted (in thousands)

Pre-tax operating margin

%

%

Non-GAAP measures, excluding notable items: (b)

Adjusted total revenue

$

$

4

%

Adjusted noninterest expense

$

$

1

%

Adjusted operating leverage (a)

bps

Adjusted diluted earnings per common share

$

$

%

Adjusted pre-tax operating margin

%

%

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

(b) See “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11.

bps – basis points.

KEY DRIVERS (comparisons are 2024 vs. 2023, unless otherwise noted)

•Total revenue increased 5%, primarily reflecting:

•Fee revenue increased 6%, primarily reflecting higher market values, net new business and higher client activity and foreign exchange revenue, partially offset by the mix of AUM flows.

•Investment and other revenue increased primarily reflecting the 4Q23 reduction in the fair value of a contingent consideration receivable and higher client activity in our fixed income and equity trading business.

•Net interest income decreased 1%, primarily reflecting changes in deposit mix, partially offset by higher investment securities portfolio yields and balance sheet growth.

•Provision for credit losses was $70 million, primarily driven by reserve increases related to commercial real estate exposure and changes in the macroeconomic forecast.

•Noninterest expense decreased 4%, primarily reflecting the net impact of adjustments for the FDIC special assessment and efficiency savings, partially offset by higher investments, employee merit increases and revenue-related expenses. Excluding notable items, noninterest expense increased 1% (a).

•Effective tax rate of 22.3%.

Capital and liquidity

•Returned $4.4 billion to common shareholders, including dividends of $1.3 billion (including dividend equivalents on share-based awards) and $3.1 billion of share repurchases.

•ROTCE – 22.8% (a); Adjusted ROTCE – 23.8% (a).

(a) See “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for additional information.

3

BNY 4Q24 Financial Results

SECURITIES SERVICES BUSINESS SEGMENT HIGHLIGHTS

(dollars in millions, unless otherwise noted; not meaningful - N/M)

Investment services fees:

Asset Servicing

$

$

$

2

%

7

%

Issuer Services

4

4

Total investment services fees

2

6

Foreign exchange revenue

7

Other fees (a)

9

Total fee revenue

3

8

Investment and other revenue

N/M

N/M

Total fee and other revenue

2

6

Net interest income

7

Total revenue

5

7

Provision for credit losses

N/M

N/M

Noninterest expense

7

1

Income before taxes

$

$

$

—

%

%

Total revenue by line of business:

Asset Servicing

$

$

$

4

%

7

%

Issuer Services

7

5

Total revenue by line of business

$

$

$

5

%

7

%

Pre-tax operating margin

%

%

%

Securities lending revenue (b)

$

$

$

%

8

%

Metrics:

Average loans

$

$

$

4

%

2

%

Average deposits

$

$

$

—

%

6

%

AUC/A at period end (in trillions) (current period is preliminary) (c)

$

$

$

1

%

%

Market value of securities on loan at period end (in billions) (d)

$

$

$

1

%

8

%

(a) Other fees primarily include financing-related fees.

(b) Included in investment services fees reported in the Asset Servicing line of business.

(c) Consists of AUC/A primarily from the Asset Servicing line of business and, to a lesser extent, the Issuer Services line of business. Includes the AUC/A of CIBC Mellon Global Securities Services Company (“CIBC Mellon”), a joint venture with the Canadian Imperial Bank of Commerce, of $1.8 trillion at Dec. 31, 2024, $1.9 trillion at Sept. 30, 2024 and $1.7 trillion at Dec. 31, 2023.

(d) Represents the total amount of securities on loan in our agency securities lending program. Excludes securities for which BNY acts as agent on behalf of CIBC Mellon clients, which totaled $60 billion at Dec. 31, 2024, $67 billion at Sept. 30, 2024 and $63 billion at Dec. 31, 2023.

KEY DRIVERS

•The drivers of the total revenue variances by line of business are indicated below.

•Asset Servicing – The year-over-year increase primarily reflects higher net interest income, foreign exchange revenue, market values, client activity and net new business, partially offset by a strategic equity investment gain recorded in 4Q23. The sequential increase primarily reflects higher net interest income, client activity and foreign exchange revenue.

•Issuer Services – The year-over-year increase reflects higher Corporate Trust fees, partially offset by lower Depositary Receipts revenue. The sequential increase primarily reflects higher net interest income and Depositary Receipts revenue.

•Noninterest expense increased year-over-year primarily reflecting higher litigation reserves, employee merit increases and higher investments, partially offset by efficiency savings. The sequential increase primarily reflects higher litigation reserves, investments and revenue-related expenses, partially offset by efficiency savings.

4

BNY 4Q24 Financial Results

MARKET AND WEALTH SERVICES BUSINESS SEGMENT HIGHLIGHTS

(dollars in millions, unless otherwise noted; not meaningful - N/M)

Investment services fees:

Pershing

$

$

$

9

%

9

%

Treasury Services

3

Clearance and Collateral Management

3

Total investment services fees

6

Foreign exchange revenue

Other fees (a)

5

Total fee revenue

6

Investment and other revenue

N/M

N/M

Total fee and other revenue

6

Net interest income

9

Total revenue

8

Provision for credit losses

9

7

N/M

N/M

Noninterest expense

2

2

Income before taxes

$

$

$

%

%

Total revenue by line of business:

Pershing

$

$

$

9

%

5

%

Treasury Services

Clearance and Collateral Management

4

Total revenue by line of business

$

$

$

8

%

%

Pre-tax operating margin

%

%

%

Metrics:

Average loans

$

$

$

(1)

%

8

%

Average deposits

$

$

$

2

%

4

%

AUC/A at period end (in trillions) (current period is preliminary) (b)

$

$

$

(1)

%

6

%

(a) Other fees primarily include financing-related fees.

(b) Consists of AUC/A from the Clearance and Collateral Management and Pershing lines of business.

KEY DRIVERS

•The drivers of the total revenue variances by line of business are indicated below.

•Pershing – The year-over-year increase primarily reflects higher market values and client activity, partially offset by lower net interest income. The sequential increase primarily reflects higher client activity and net interest income.

•Treasury Services – The year-over-year increase primarily reflects higher net interest income and net new business. The sequential increase primarily reflects higher net interest income.

•Clearance and Collateral Management – The year-over-year increase primarily reflects higher net interest income, collateral management fees and clearance volumes. The sequential increase primarily reflects higher net interest income and collateral management fees.

•Noninterest expense increased year-over-year primarily reflecting higher revenue-related expenses, investments and employee merit increases, partially offset by efficiency savings and lower litigation reserves. The sequential increase primarily reflects higher investments and severance expense, partially offset by efficiency savings.

5

BNY 4Q24 Financial Results

INVESTMENT AND WEALTH MANAGEMENT BUSINESS SEGMENT HIGHLIGHTS

(dollars in millions, unless otherwise noted; not meaningful - N/M)

Investment management fees

$

$

$

1

%

9

%

Performance fees

N/M

N/M

Investment management and performance fees

2

9

Distribution and servicing fees

—

3

Other fees (a)

N/M

N/M

Total fee revenue

2

8

Investment and other revenue (b)

9

N/M

N/M

Total fee and other revenue (b)

3

Net interest income

4

4

Total revenue

3

Provision for credit losses

—

1

(2)

N/M

N/M

Noninterest expense

4

2

Income (loss) before taxes

$

$

$

(4)

(2)

%

N/M

(c)

Total revenue by line of business:

Investment Management

$

$

$

3

%

%

Wealth Management

3

9

Total revenue by line of business

$

$

$

3

%

%

Pre-tax operating margin

%

%

(1)

%

Adjusted pre-tax operating margin – Non-GAAP (d)

%

%

(1)

%

(e)

Metrics:

Average loans

$

$

$

1

%

2

%

Average deposits

$

$

$

(1)

%

%

AUM (in billions) (current period is preliminary) (f)

$

$

$

(5)

%

3

%

Wealth Management client assets (in billions) (current period is preliminary) (g)

$

$

$

(2)

%

5

%

(a) Other fees primarily include investment services fees.

(b) Investment and other revenue and total fee and other revenue are net of income (loss) attributable to noncontrolling interests related to consolidated investment management funds.

(c) Excluding notable items, income before taxes increased 24% (Non-GAAP) compared with 4Q23. See “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for information on this Non-GAAP measure.

(d) Net of distribution and servicing expense. See “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for information on this Non-GAAP measure.

(e) Excluding notable items and net of distribution and servicing expense, the adjusted pre-tax operating margin was 21% (Non-GAAP) for 4Q23. See “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for information on this Non-GAAP measure.

(f) Represents assets managed in the Investment and Wealth Management business segment.

(g) Includes AUM and AUC/A in the Wealth Management line of business.

KEY DRIVERS

•The drivers of the total revenue variances by line of business are indicated below.

•Investment Management – The year-over-year increase primarily reflects the 4Q23 reduction in the fair value of a contingent consideration receivable and higher market values, partially offset by the mix of AUM flows. The sequential increase primarily reflects higher market values and equity investment income, and the timing of performance fees, partially offset by the mix of AUM flows.

•Wealth Management – The year-over-year increase primarily reflects higher market values and net interest income, partially offset by changes in product mix. The sequential increase primarily reflects higher net interest income.

•Noninterest expense increased year-over-year primarily reflecting higher revenue-related expenses and employee merit increases, partially offset by efficiency savings. The sequential increase primarily reflects higher revenue-related and severance expenses.

6

BNY 4Q24 Financial Results

OTHER SEGMENT

The Other segment primarily includes the leasing portfolio, corporate treasury activities, including our securities portfolio, derivatives and other trading activity, renewable energy and other corporate investments, certain business exits and other corporate revenue and expense items.

(dollars in millions)

Fee revenue

$

$

(1)

$

Investment and other revenue

9

Total fee and other revenue

Net interest (expense)

(8)

Total revenue

6

Provision for credit losses

(4)

—

(6)

Noninterest expense

(Loss) before taxes

$

$

(4)

$

KEY DRIVERS

•Total revenue includes corporate treasury and other investment activity, including hedging activity which has an offsetting impact between fee and other revenue and net interest expense. The year-over-year decrease primarily reflects strategic equity investment gains recorded in 4Q23. The sequential decrease primarily reflects higher net losses on sales of securities and gains on real estate and other investments recorded in 3Q24.

•Noninterest expense decreased year-over-year primarily driven by adjustments for the FDIC special assessment recorded in 4Q23. The sequential increase primarily reflects higher severance expense and the impact of the adjustments to the FDIC special assessment.

7

BNY 4Q24 Financial Results

NOTABLE ITEMS BY BUSINESS SEGMENT

Notable items by business segment (a)

(dollars in millions)

Securities

Services

Market and Wealth Services

Investment and Wealth Management

Other

Total

Securities

Services

Market and Wealth Services

Investment and Wealth Management

Other

Total

Fee and other revenue

$

—

$

—

$

—

$

—

$

—

$

(6)

$

—

$

$

—

$

Noninterest expense

(Loss) before taxes

$

$

$

$

$

$

$

$

$

$

(a) See pages 11 and 12 for details of notable items and line items impacted.

Notable items by business segment (a)

(dollars in millions)

Securities

Services

Market and Wealth Services

Investment and Wealth Management

Other

Total

Fee and other revenue

$

—

$

—

$

—

$

—

$

—

Noninterest expense

6

6

3

(Loss) before taxes

$

(6)

$

(6)

$

(3)

$

$

(a) See pages 11 and 12 for details of notable items and line items impacted.

Notable items by business segment (a)

(dollars in millions)

Securities

Services

Market and Wealth Services

Investment and Wealth Management

Other

Total

Securities

Services

Market and Wealth Services

Investment and Wealth Management

Other

Total

Fee and other revenue

$

—

$

—

$

—

$

—

$

—

$

(6)

$

—

$

$

—

$

Noninterest expense

(Loss) before taxes

$

$

$

$

$

$

$

$

$

$

(a) See pages 11 and 13 for details of notable items and line items impacted.

8

BNY 4Q24 Financial Results

CAPITAL AND LIQUIDITY

Capital and liquidity ratios

Consolidated regulatory capital ratios: (a)

CET1 ratio

%

%

%

Tier 1 capital ratio

Total capital ratio

Tier 1 leverage ratio (a)

Supplementary leverage ratio (a)

BNY shareholders’ equity to total assets ratio

%

%

%

BNY common shareholders’ equity to total assets ratio

%

%

%

Average LCR (a)

%

%

%

Average NSFR (a)

%

%

%

Book value per common share

$

$

$

Tangible book value per common share – Non-GAAP (b)

$

$

$

Common shares outstanding (in thousands)

(a) Regulatory capital and liquidity ratios for Dec. 31, 2024 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 Dec. 31, 2024 was the Standardized Approach, for Sept. 30, 2024 was the Standardized Approach for the CET1 and Tier 1 capital ratios and the Advanced Approaches for the Total capital ratio, and for Dec. 31, 2023 was the Advanced Approaches.

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

•CET1 capital totaled $18.8 billion and Tier 1 capital totaled $23.0 billion at Dec. 31, 2024, both decreasing compared with Sept. 30, 2024, primarily reflecting a decline in accumulated other comprehensive income and capital returned through common stock repurchases and dividends, partially offset by capital generated through earnings. The CET1 ratio decreased compared with Sept. 30, 2024 reflecting the decrease in capital and higher risk-weighted assets. The Tier 1 leverage ratio decreased compared with Sept. 30, 2024 reflecting the decrease in capital and higher average assets.

NET INTEREST INCOME

Net interest income

(dollars in millions; not meaningful - N/M)

Net interest income

$

$

$

8%

Add: Tax equivalent adjustment

1

—

1

N/M

N/M

Net interest income, on a fully taxable equivalent (“FTE”) basis – Non-GAAP (a)

$

$

$

8%

Net interest margin

%

%

%

bps

6

bps

Net interest margin (FTE) – Non-GAAP (a)

%

%

%

bps

6

bps

(a) Net interest income (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP include the tax equivalent adjustments on tax-exempt income. See “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for information on this Non-GAAP measure.

bps – basis points.

•Net interest income increased year-over-year primarily reflecting higher investment securities portfolio yields and balance sheet growth, partially offset by changes in deposit mix.

•The sequential increase in net interest income primarily reflects the reinvestment of maturing investment securities at higher yields, partially offset by deposit margin compression.

9

BNY 4Q24 Financial Results

THE BANK OF NEW YORK MELLON CORPORATION

Condensed Consolidated Income Statement

(dollars in millions)

Quarter ended

Year ended

Fee and other revenue

Investment services fees

$

$

$

$

$

Investment management and performance fees

Foreign exchange revenue

Financing-related fees

Distribution and servicing fees

Total fee revenue

Investment and other revenue

Total fee and other revenue

Net interest income

Interest income

Interest expense

Net interest income

Total revenue

Provision for credit losses

Noninterest expense

Staff

Software and equipment

Professional, legal and other purchased services

Net occupancy

Sub-custodian and clearing

Distribution and servicing

Business development

Bank assessment charges

Amortization of intangible assets

Other

Total noninterest expense

Income

Income before taxes

Provision for income taxes

Net income

Net (income) loss attributable to noncontrolling interests related to consolidated investment management funds

(2)

(7)

2

(2)

Net income applicable to shareholders of The Bank of New York Mellon Corporation

Preferred stock dividends

Net income applicable to common shareholders of The Bank of New York Mellon Corporation

$

$

$

$

$

Earnings per share applicable to the common shareholders of The Bank of New York Mellon Corporation

Quarter ended

Year ended

(in dollars)

Basic

$

$

$

$

$

Diluted

$

$

$

$

$

BNY 4Q24 Financial Results

EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES

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

Net interest income, 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 has included the adjusted pre-tax operating margin – Non-GAAP, which is the pre-tax operating margin for the Investment and Wealth Management business segment, net of distribution and servicing expense that was passed to third parties who distribute or service our managed funds. We believe that this measure is useful when evaluating the performance of the Investment and Wealth Management business segment relative to industry competitors.

See “Explanation of GAAP and Non-GAAP Financial Measures” in the Financial Supplement available at www.bny.com for additional reconciliations of Non-GAAP measures.

BNY has also included revenue measures excluding notable items, including the reduction in the fair value of a contingent consideration receivable and disposal gains. Expense measures, excluding notable items, including severance expense, litigation reserves and the FDIC special assessment, are also presented. Litigation reserves represent accruals for loss contingencies that are both probable and reasonably estimable, but exclude standard business-related legal fees. Net income applicable to common shareholders of The Bank of New York Mellon Corporation, diluted earnings per share, operating leverage, return on common equity, return on tangible common equity and pre-tax operating margin, excluding the notable items mentioned above, are also provided. These measures are provided to permit investors to view the financial measures on a basis consistent with how management views the businesses.

BNY 4Q24 Financial Results

Reconciliation of Non-GAAP measures, excluding notable items

(dollars in millions, except per share amounts)

Total revenue – GAAP

$

$

$

4

%

%

Less: Reduction in the fair value of a contingent consideration receivable (a)

—

—

Disposal (loss) (a)

—

—

(6)

Adjusted total revenue – Non-GAAP

$

$

$

4

%

8

%

Noninterest expense – GAAP

$

$

$

8

%

%

Less: Severance expense (b)

Litigation reserves (b)

2

FDIC special assessment (b)

(8)

Adjusted noninterest expense – Non-GAAP

$

$

$

4

%

2

%

Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP

$

$

$

2

%

%

Less: Reduction in the fair value of a contingent consideration receivable (a)

—

—

Disposal (loss) (a)

—

—

(5)

Severance expense (b)

Litigation reserves (b)

(2)

FDIC special assessment (b)

6

Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation – Non-GAAP

$

$

$

%

%

Diluted earnings per common share – GAAP

$

$

$

3

%

%

Less: Reduction in the fair value of a contingent consideration receivable (a)

—

—

Disposal (loss) (a)

—

—

Severance expense (b)

Litigation reserves (b)

—

FDIC special assessment (b)

Total diluted earnings per common share impact of notable items

(c)

Adjusted diluted earnings per common share – Non-GAAP

$

$

(c)

$

%

%

Operating leverage – GAAP (d)

bps

bps

Adjusted operating leverage – Non-GAAP (d)

bps

bps

(a) Reflected in Investment and other revenue.

(b) Severance expense is reflected in Staff expense, Litigation reserves in Other expense, and FDIC special assessment in Bank assessment charges, respectively.

(c) Does not foot due to rounding.

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

bps - basis points.

BNY 4Q24 Financial Results

Reconciliation of Non-GAAP measures, excluding notable items

(dollars in millions, except per share amounts)

Total revenue – GAAP

$

$

5

%

Less: Reduction in the fair value of a contingent consideration receivable (a)

—

Disposal (loss) (a)

—

(6)

Adjusted total revenue – Non-GAAP

$

$

4

%

Total noninterest expense – GAAP

$

$

(4)%

Less: Severance expense (b)

Litigation reserves (b)

FDIC special assessment (b)

Adjusted total noninterest expense – Non-GAAP

$

$

1

%

Net income applicable to common shareholders of The Bank of New York Mellon

Corporation – GAAP

$

$

%

Less: Reduction in the fair value of a contingent consideration receivable (a)

—

Disposal (loss) (a)

—

(5)

Severance expense (b)

Litigation reserves (b)

FDIC special assessment (b)

Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation – Non-GAAP

$

$

%

Diluted earnings per share – GAAP

$

$

%

Less: Reduction in the fair value of a contingent consideration receivable (a)

—

Disposal (loss) (a)

—

Severance expense (b)

Litigation reserves (b)

FDIC special assessment (b)