The Bank of New York Mellon Corporation Reports First Quarter Continuing EPS of $0.28 Impacted by: $0.21 per share resulting from investment and goodwill write-downs, $0.04 per share from merger and integration expenses


Strengthened Capital Ratios Tier 1 13.8% (11.2% Excluding TARP), TCE 4.2%

Revenue Impacted by Lower Equity Market Values, Client Volumes and Interest Rates

Increased Market Share and Well-Controlled Expenses

Quarterly Dividend Reduced to 9 Cents; Building Capital Levels for Flexibility, Growth and the Repayment of TARP When Permitted

NEW YORK, April 21, 2009 — The Bank of New York Mellon Corporation today reported first quarter income from continuing operations applicable to common shareholders of $322 million, or $0.28 per common share. This compares to income from continuing operations applicable to common shareholders of $749 million, or $0.65 per common share, in the first quarter of 2008 and income from continuing operations applicable to common shareholders, before an extraordinary item, of $53 million, or $0.05 per common share, in the fourth quarter of 2008.

"In a difficult market environment, we continued to focus on winning new business, managing expenses and building the capital base. Our efforts resulted in market share gains in most of our businesses, a 10% decline in operating expenses and stronger capital ratios. The decision to reduce the dividend was not made lightly, and reflects our commitment to build capital further, pursue growth opportunities and, with the permission of our regulators, repay the government's investment in BNY Mellon. We anticipate returning to our historic payout ratio as soon as practical.

"Given our global leadership position in asset management and securities servicing and the strength of our balance sheet, we remain confident in our ability to manage successfully through this global recession," said Robert P. Kelly, chairman and chief executive officer of The Bank of New York Mellon Corporation.

First Quarter Highlights Unless otherwise noted, all comments begin with the results of the first quarter of 2009 and are compared to the first quarter of 2008. Please refer to the Quarterly Earnings Review for detailed business segment information.

Total revenue was $2.930 billion, comprised of $2.138 billion of fee and other revenue and $792 million of net interest revenue, and included a pre-tax charge for the write-down of certain investments ($347 million) in fee and other revenue.

    ----------------------------------------------------------------------
    Reconciliation of total revenue                          1Q09 vs.
    (dollar amounts in                                   ---------------
     millions)               1Q09      4Q08      1Q08    1Q08       4Q08
    ----------------------------------------------------------------------
    Fee and other revenue  $2,138    $1,816    $2,980     (28)%       18%
    Investment write-downs    347(a)  1,241        73     N/M        N/M
    ----------------------------------------------------------------------
      Total fee and other
       revenue - Non-GAAP   2,485     3,057     3,053     (19)       (19)
    Net interest revenue      792     1,070       767       3        (26)
    ----------------------------------------------------------------------
      Total revenue
       excluding investment
       write-downs -
       Non-GAAP            $3,277    $4,127    $3,820     (14)%      (21)%
    ----------------------------------------------------------------------
    (a)  Includes $295 million recorded in net securities gains (losses)
    and $52 million recorded in investment income.
    N/M - Not meaningful.

  • Assets under custody and administration amounted to $19.5 trillion, a decrease of 16% compared with the prior year and a decrease of 3% (unannualized) sequentially, as the impact of new business converted during the first quarter was more than offset by lower market values and the impact of a stronger U.S. dollar. Assets under management, excluding securities lending assets, amounted to $881 billion at quarter end. This represents a decrease of 20% compared with the prior year. Sequentially, assets under management decreased 5% (unannualized). Net asset outflows in the first quarter totaled $12 billion, primarily due to outflows in treasury/government money market funds reflecting the historically low level of interest rates.
  • Securities servicing fees totaled $1.226 billion, a decrease of 20% year-over-year and 15% (unannualized) sequentially. Continued strong new business wins in our asset servicing businesses were more than offset by the impact of lower volumes and spreads associated with securities lending in asset servicing, lower market values, a stronger U.S. dollar and lower levels of fixed income issuances globally. Securities lending fee revenue totaled $90 million in the first quarter of 2009 compared with $245 million in the prior year period and $187 million sequentially.
  • Asset and wealth management fees totaled $609 million, a decline of 28% compared to the prior year and 7% (unannualized) sequentially reflecting the global weakness in market values and a stronger U.S. dollar, partially offset by new business. We continued to benefit from net client inflows into Wealth Management and stronger investment performance from the institutional boutiques. Performance fees totaled $7 million in the first quarter of 2009 compared with $20 million in the prior year and $44 million sequentially.
  • Foreign exchange and other trading activities totaled $307 million, an increase of 19% compared with $259 million in the prior year and a decrease of 40% (unannualized) compared with $510 million in the fourth quarter of 2008. The increase compared with the first quarter of 2008 reflects the benefit from a higher volatility of key currencies, partially offset by lower client volumes. The decrease sequentially reflects the impact of both lower volatility and client volumes.
  • Net interest revenue (FTE) totaled $796 million with a net interest margin of 1.89% and compares with the prior year of $773 million and 2.14%, respectively. The decline in the net interest margin reflects our conservative investment strategy in an uncertain environment, demonstrated by the increase in the proportion of average interest-earning assets invested in short term liquid investments rising from 32% to 49%. Also impacting the net interest margin was the decline in the value of noninterest bearing deposits as a result of historically low interest rates. Sequentially, net interest revenue declined by $281 million and the margin declined by 45 basis points due principally to the decline in the value of noninterest-bearing deposits together with an anticipated decline in the size of the balance sheet as short term credit markets normalized.
  • Securities portfolio losses totaled $295 million. This compares with a loss of $73 million in the first quarter of 2008 and a loss of $1.241 billion in the fourth quarter of 2008, which included an expected loss of $22 million and $208 million, respectively. Write-downs recorded in the first quarter of 2009 primarily reflect a deterioration in the credit quality of certain securities ($200 million) and the adverse impact of low interest rates on a structured tax investment ($95 million). The Company adopted FAS 115-2 in the first quarter of 2009. Further information on the investment portfolio is detailed in the Quarterly Earnings Review on page 9.

The provision for credit losses was $80 million in the first quarter of 2009 compared with $16 million in the first quarter of 2008 and $60 million in the fourth quarter of 2008. During the first quarter of 2009, the total allowance for credit losses increased by $30 million and net charge-offs totaled $50 million.

Total noninterest expense was $2.342 billion. This compares to noninterest expense of $2.612 billion in the first quarter of 2008 and $2.870 billion in the fourth quarter of 2008.

    ------------------------------------------------------------------------
    Reconciliation of noninterest expense                       1Q09 vs.
    (dollar amounts in                                      --------------
     millions)                  1Q09      4Q08      1Q08    1Q08      4Q08
    ------------------------------------------------------------------------
    Noninterest expense       $2,342    $2,870    $2,612     (10)%     (18)%
    Restructuring charges         10       181         -     N/M       N/M
    Support agreement charges     (8)      163        14     N/M       N/M
    Goodwill impairment -
     Mellon United National
     Bank                         50         -         -     N/M       N/M
    ------------------------------------------------------------------------
      Subtotal                 2,290     2,526     2,598     (12)%      (9)%
    M&I expenses                  68        97       126     (46)      (30)
    Intangible amortization      108       116       122     (11)       (7)
    ------------------------------------------------------------------------
      Total noninterest
       expense, excluding
       restructuring charges,
       support agreement
       charges, goodwill
       impairment, M&I
       expenses and
       intangible
       amortization -
       Non-GAAP               $2,114    $2,313    $2,350     (10)%      (9)%
    ------------------------------------------------------------------------
    N/M - Not meaningful.

  • Total noninterest expense (excluding restructuring charges, support agreement charges, goodwill impairment, M&I expenses and intangible amortization) decreased 10% compared with the prior year and 9% sequentially. The decline in expense compared with both periods reflects lower staff expense, including lower incentives, strong expense control and a stronger U.S. dollar. The decrease sequentially included declines in nearly every expense category. The restructuring charge of $10 million in the first quarter of 2009 is related to a 4% reduction in staff positions announced in the fourth quarter of 2008. The goodwill impairment is related to a subsidiary bank based in Miami.

The effective tax rate was 27.2% in the first quarter of 2009. Excluding the impact of investment write-downs, restructuring charges, support agreement charges, goodwill impairment and M&I expenses, the effective tax rate was 32.6% in the first quarter of 2009.

  • The unrealized net of tax loss on our securities portfolio was $4.5 billion at March 31, 2009. The unrealized net of tax loss on our total securities portfolio was $4.1 billion at Dec. 31, 2008. Further information on the investment portfolio is detailed in the Quarterly Earnings Review on page 9.
    -------------------------------------------------------------------------
    Capital ratios - preliminary            March 31,    Dec. 31,   March 31,
                                                2009        2008        2008
    -------------------------------------------------------------------------
    Tier 1 capital ratio                        13.8%(a)    13.3%        8.8%
    Total (Tier 1 plus Tier 2) capital
     ratio                                      17.4        17.1        12.1
    Leverage capital ratio                       7.8         6.9         6.2
    Total shareholders' equity to assets
     ratio                                      13.9        11.8        13.9
    Tangible common equity to tangible
     assets ratio (b)                            4.2(c)      3.8         4.4
    -------------------------------------------------------------------------
    (a) The cumulative effect adjustment of adopting FAS 115-2 added
    approximately 33 bps to the Tier 1 ratio at March 31, 2009.
    (b) See page 11 for a calculation of this ratio.
    (c) Adoption of recent accounting changes added approximately 28 basis
    points to the tangible common equity to assets ratio.

Also, on April 21, 2009, The Bank of New York Mellon Corporation declared a quarterly common stock dividend of 9 cents per common share. This cash dividend is payable on May 11, 2009 to shareholders of record as of the close of business on May 1, 2009. The decision to reduce the quarterly dividend from 24 cents reflects our commitment to build capital, pursue growth opportunities and, with the permission of our regulators, repay the government's investment in the Company.

The Bank of New York Mellon Corporation 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. The company 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 $19.5 trillion in assets under custody and administration, $881 billion in assets under management, services more than $11 trillion in outstanding debt and processes global payments averaging $1.8 trillion per day. Additional information is available at www.bnymellon.com.

Earnings Release Format

Throughout this earnings release, all information is reported on a continuing operations basis unless otherwise noted. Quarterly returns are annualized. 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. Where financial measures are presented excluding certain specified amounts, we believe the presentation enhances investor understanding of period-to-period results.

Supplemental Financial Information

The Quarterly Earnings Review and supplemental financial trends for The Bank of New York Mellon Corporation have been updated through March 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 The Bank of New York Mellon Corporation, will host a conference call and simultaneous live audio webcast at 8:00 a.m. EDT on April 21, 2009. 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 supplement financial trends, will be available at www.bnymellon.com beginning at approximately 6:30 a.m. EDT on April 21, 2009. Replays of the conference call and audio webcast will be available beginning April 21, 2009 at approximately 2:00 p.m. EDT through May 5, 2009 by dialing (866) 442-1776 (U.S.) or (203) 369-1076 (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

    ------------------------------------------------------------------------
    (dollar amounts in millions,
     except per common share amounts                 Quarter ended
     and unless otherwise noted;           March 31,    Dec. 31,   March 31,
     common shares in thousands)               2009        2008        2008
    ------------------------------------------------------------------------
    Return on tangible common equity:
      GAAP                                     26.1%        6.7%(a)    35.8%
      Non-GAAP adjusted (b)                    45.5%       61.5%(a)    41.4%

    Return on common equity:
      GAAP                                      5.2%        0.8%(a)    10.2%
      Non-GAAP adjusted (c)                    10.9%       16.9%(a)    12.9%

    Fee and other revenue as a percentage
     of total revenue (FTE)                      73%         63%         79%
      Excluding investment write-downs           76%         74%         80%

    Annualized fee revenue (excluding
     investment write-downs) per
     employee (based on average headcount)
     (in thousands)                            $237        $282        $289

    Non-U.S. percent of revenue excluding
     investment write-downs (FTE)                29%         31%         32%

    Pre-tax operating margin (FTE):
      GAAP                                       18%         (1)%        30%
      Non-GAAP adjusted (c)                      33%         43%         38%

    Net interest margin (FTE)                  1.89%       2.34%       2.14%

    Selected average balances:
      Interest-earning assets              $169,685    $183,876    $145,118
      Total assets                         $220,119    $243,962    $200,790
      Interest-bearing deposits            $102,849     $96,575     $92,881
      Noninterest-bearing deposits          $43,561     $52,274     $26,240
      Total shareholders' equity            $27,978     $28,771     $29,551

    Average common shares and equivalents
     outstanding:
      Basic                               1,146,070   1,144,839   1,134,280
      Diluted                             1,152,487   1,150,753   1,147,906

    Period-end data
    Assets under custody and
     administration (in trillions)            $19.5       $20.2       $23.1
      Cross-border assets (in trillions)       $7.3        $7.5       $10.0
    Market value of securities on loan
     (in billions) (d)                         $293        $326        $660
    Assets under management (in billions)      $881        $928      $1,105

    Employees                                42,000      42,900      42,600

    Book value per common share              $22.03      $22.00      $24.89
    Tangible book value per common share      $5.48       $5.18       $7.03
    Dividend per common share                 $0.24(e)    $0.24       $0.24
    Closing common stock price per common
     share                                   $28.25      $28.33      $41.73
    Market capitalization                   $32,585     $32,536     $47,732
    ------------------------------------------------------------------------
    (a) Before extraordinary loss.
    (b) Calculated excluding M&I expenses, support agreement charges,
    restructuring charges, goodwill impairment and investment write-downs.
    (c) Calculated excluding M&I expenses, support agreement charges,
    restructuring charges, goodwill impairment, investment write-downs
    and intangible amortization expenses.
    (d) Represents the securities on loan, both cash and non-cash, managed
    by the Asset Servicing segment.
    (e) Represents the dividend paid in the first quarter of 2009.  The
    dividend was reduced to 9 cents per common share in the second
    quarter of 2009.



                           THE BANK OF NEW YORK MELLON CORPORATION
                           Condensed Consolidated Income Statement

    -------------------------------------------------------------------------
                                                      Quarter ended
                                            ---------------------------------
    (in millions, except per common         March 31,    Dec. 31,   March 31,
     share amounts)                             2009        2008        2008
    -------------------------------------------------------------------------
    Fee and other revenue
    Securities servicing fees:
      Asset servicing                           $609        $782        $899
      Issuer services                            364         388         376
      Clearing services (a)                      253         279         263
    -------------------------------------------------------------------------
        Total securities servicing fees        1,226       1,449       1,538
    Asset and wealth management fees             609         657         842
    Performance fees                               7          44          20
    Foreign exchange and other trading
     activities                                  307         510         259
    Treasury services                            126         134         124
    Distribution and servicing                   111         106          98
    Financing-related fees                        48          45          48
    Investment income (a)                        (21)         47          28
    Other                                         20          65          96
    -------------------------------------------------------------------------
        Total fee revenue                      2,433       3,057       3,053
    Net securities gains (losses)               (295)     (1,241)        (73)
    -------------------------------------------------------------------------
        Total fee and other revenue            2,138       1,816       2,980
    Net interest revenue
    Interest revenue                             998       1,551       1,656
    Interest expense                             206         481         889
    -------------------------------------------------------------------------
        Net interest revenue                     792       1,070         767
    Provision for credit losses                   80          60          16
    -------------------------------------------------------------------------
        Net interest revenue after
         provision for credit losses             712       1,010         751
    Noninterest expense
    Staff                                      1,151       1,154       1,352
    Professional, legal and other
     purchased services                          262         307         252
    Net occupancy                                140         143         129
    Distribution and servicing                   107         123         130
    Software                                      81          86          79
    Furniture and equipment                       77          86          79
    Sub-custodian and clearing                    66          80          70
    Business development                          44          76          66
    Other (b)                                    228         421         207
    -------------------------------------------------------------------------
        Subtotal                               2,156       2,476       2,364
    Amortization of intangible assets            108         116         122
    Restructuring charges                         10         181           -
    Merger and integration expenses:
      The Bank of New York Mellon Corporation     68          97         121
      Acquired Corporate Trust Business            -           -           5
    -------------------------------------------------------------------------
        Total noninterest expense              2,342       2,870       2,612
    -------------------------------------------------------------------------
    Income
    Income (loss) from continuing operations
     before income taxes                         508         (44)      1,119
    Provision (benefit) for income taxes         138        (135)        361
    -------------------------------------------------------------------------
        Income from continuing operations        370          91         758
    Discontinued operations:
      Income (loss) from discontinued
       operations                                  -           2          (5)
      Provision (benefit) for income taxes         -           1          (2)
    -------------------------------------------------------------------------
        Income (loss) from discontinued
         operations, net of tax                    -           1          (3)
    Extraordinary (loss) on consolidation of
     commercial paper conduit, net of tax          -         (26)          -
    -------------------------------------------------------------------------
        Net income                               370          66         755
    Net income attributable to noncontrolling
     interests, net of tax                        (1)         (5)         (9)
    Preferred dividends                          (47)        (33)          -
    -------------------------------------------------------------------------
        Net income applicable to common
         shareholders of The Bank of New York
         Mellon Corporation                     $322         $28        $746
    -------------------------------------------------------------------------
    Earnings per share attributable to the
     common shareholders of The Bank of
     New York Mellon Corporation:
    Basic:
      Income from continuing operations        $0.28       $0.05       $0.65
      Income (loss) from discontinued
       operations, net of tax                      -           -           -
      Extraordinary (loss), net of tax             -       (0.02)          -
    -------------------------------------------------------------------------
        Net income applicable to common
         stock                                 $0.28       $0.02(c)    $0.65
    -------------------------------------------------------------------------
    Diluted:
      Income from continuing operations        $0.28       $0.05       $0.65
      Income (loss) from discontinued
       operations, net of tax                      -           -           -
      Extraordinary (loss), net of tax             -       (0.02)          -
    -------------------------------------------------------------------------
        Net income applicable to common
         stock                                 $0.28       $0.02(c)    $0.65
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Reconciliation of net income from
     continuing operations attributable to
     the common shareholders of The Bank of
     New York Mellon Corporation:
    (in millions)
    -------------------------------------------------------------------------
    Income from continuing operations           $370         $91        $758
    Preferred dividends                          (47)        (33)          -
    Net income attributable to
     noncontrolling interests, net of tax         (1)         (5)         (9)
    -------------------------------------------------------------------------
      Income from continuing operations,
       net of tax                                322          53         749
    Discontinued operations, net of tax            -           1          (3)
    Extraordinary (loss) on the
     consolidation of commercial paper
     conduit, net of tax                           -         (26)          -
    -------------------------------------------------------------------------
      Net income attributable to the common
       shareholders of The Bank of New York
       Mellon Corporation                       $322         $28        $746
    -------------------------------------------------------------------------
    (a) In the first quarter of 2009, fee revenue associated with an equity
    investment was reclassified from clearing services revenue to investment
    income.  Fee revenue associated with an equity investment was a loss of
    $58 million in the first quarter of 2009, income of $9 million in the
    fourth quarter of 2008 and income of $4 million in the first quarter of
    2008.  Prior period amounts have been reclassified.
    (b) Includes support agreement charges of $(8) million in 1Q09, $163
    million in 4Q08 and $14 million in 1Q08.
    (c) Does not foot due to rounding.



                     THE BANK OF NEW YORK MELLON CORPORATION
                            Consolidated Balance Sheet

    ----------------------------------------------------------------------
    (dollar amounts in millions,               March 31,          Dec. 31,
     except per share amounts)                     2009              2008
    ----------------------------------------------------------------------
    Assets
    Cash and due from:
      Banks                                      $3,649            $4,881
      Federal Reserve and other central
       banks (includes $29,648 and $53,270
       of interest-bearing deposits)             29,679            53,278
    Other short-term investments - U.S.
     government-backed commercial paper, at
     fair value                                       -             5,629
    Interest-bearing deposits with banks         41,643            39,126
    Federal funds sold and securities
     purchased under resale agreements            2,548             2,000
    Securities:
      Held-to-maturity (fair value of
       $6,266 and $6,333)                         6,985             7,371
      Available-for-sale                         30,378            32,064
    ----------------------------------------------------------------------
        Total securities                         37,363            39,435
    Trading assets                                8,836            11,102
    Loans                                        41,488            43,394
    Allowance for loan losses                      (470)             (415)
    ----------------------------------------------------------------------
        Net loans                                41,018            42,979
    Premises and equipment                        1,718             1,686
    Accrued interest receivable                     500               619
    Goodwill                                     15,805            15,898
    Intangible assets                             5,717             5,856
    Other assets                                 15,002            15,023
    ----------------------------------------------------------------------
        Total assets                           $203,478          $237,512
    ----------------------------------------------------------------------
    Liabilities
    Deposits:
      Noninterest-bearing (principally
       domestic offices)                        $29,266           $55,816
      Interest-bearing deposits in domestic
       offices                                   28,738            32,386
      Interest-bearing deposits in foreign
       offices                                   75,590            71,471
    ----------------------------------------------------------------------
        Total deposits                          133,594           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             1,605             1,372
    Trading liabilities                           6,739             8,085
    Payables to customers and broker-dealers      8,415             9,274
    Commercial paper                                279               138
    Other borrowed funds                            735               755
    Accrued taxes and other expenses              3,380             4,052
    Other liabilities (including allowance
     for lending related commitments of $89
     and $114)                                    4,262             4,620
    Long-term debt                               16,232            15,865
    ----------------------------------------------------------------------
        Total liabilities                       175,241           209,425
    ----------------------------------------------------------------------
    Shareholders' equity
    Preferred stock - par value $0.01 per
     share; authorized 100,000,000 shares;
     issued 3,000,000 shares                      2,795             2,786
    Common stock-par value $0.01 per common
     share; authorized 3,500,000,000
     common shares; issued 1,153,877,457 and
     1,148,507,561 common shares                     12                11
    Additional paid-in capital                   20,452            20,432
    Retained earnings                            10,953            10,250
    Accumulated other comprehensive loss,
     net of tax                                  (5,990)           (5,426)
    Less:  Treasury stock of 427,837 and
     40,262 common shares, at cost                  (12)               (3)
    ----------------------------------------------------------------------
        Total The Bank of New York Mellon
         Corporation shareholders' equity        28,210            28,050
    Noncontrolling interest                          27                37
    ----------------------------------------------------------------------
        Total equity                             28,237            28,087
          Total liabilities and equity         $203,478          $237,512
    ----------------------------------------------------------------------

Consolidated net income applicable to common shareholders of The Bank of New York Mellon Corporation including discontinued operations

Net income applicable to common shareholders of The Bank of New York Mellon Corporation, including discontinued operations, totaled $322 million, or $0.28 per common share, in the first quarter of 2009, compared with $28 million, or $0.02 per common share, in the fourth quarter of 2008 and $746 million, or $0.65 per common share, in the first quarter of 2008.

Supplemental information - Explanation of non-GAAP financial measures

Reported amounts are presented in accordance with GAAP. We believe that the supplemental non-GAAP information is useful to the investment community in analyzing the financial results and trends of our business. We believe they facilitate comparisons with prior periods and reflect the principal basis on which our management internally monitors financial performance. These non-GAAP items are also excluded from our segment measures used internally to evaluate segment performance because management does not consider them to be particularly relevant or useful in evaluating the operating performance of our business segments.

    --------------------------------------------------------------------------
    Reconciliation of net income     1Q09           4Q08           1Q08
    and EPS -  GAAP to Non-GAAP  -----------    -----------    -----------
    (in millions, except per       Net            Net            Net
     common share amounts)       income  EPS    income  EPS    income  EPS
    --------------------------------------------------------------------------
    Net income applicable to
     common shareholders of
     The Bank of New York
     Mellon Corporation           $322  $0.28     $28  $0.02    $746  $0.65
    Discontinued operations
     (income) loss                   -      -      (1)     -       3      -
    Extraordinary loss on
     consolidation of
     commercial paper conduits,
     net of tax                      -      -      26   0.02       -      -
    --------------------------------------------------------------------------
      Continuing operations        322   0.28      53   0.05(a)  749   0.65
    M&I expenses                    41   0.04      58   0.05      75   0.07
    Restructuring charges            7   0.01     107   0.09       -      -
    Support agreement charges       (5)     -      97   0.08       8   0.01
    Goodwill impairment             31   0.03       -      -       -      -
    --------------------------------------------------------------------------
      Continuing operations
       excluding M&I expenses,
       restructuring charges,
       support agreement
       charges and goodwill
       impairment                  396   0.34(a)  315   0.27     832   0.73
    Investment write-downs         214   0.19     752   0.65      43   0.04
    --------------------------------------------------------------------------
      Continuing operations
       excluding M&I expenses,
       restructuring charges,
       support agreement
       charges, goodwill
       impairment and
       investment write-downs      610   0.53   1,067   0.93(a)  875   0.76(a)
    Intangible amortization         66   0.06      71   0.06      75   0.07
    --------------------------------------------------------------------------
      Continuing operations
       excluding M&I expenses,
       restructuring charges,
       support agreement
       charges, goodwill
       impairment, investment
       write-downs and
       intangible amortization    $676  $0.59  $1,138  $0.99    $950  $0.83
    --------------------------------------------------------------------------
    (a) Does not foot due to rounding.



    -------------------------------------------------------------------------
    Reconciliation of income from continuing operations before income
     taxes - pre-tax operating margin (FTE)
    (dollars in millions)                       1Q09        4Q08        1Q08
    -------------------------------------------------------------------------
    Income from continuing operations before
     income taxes - GAAP                        $508        $(44)     $1,119
    FTE increment                                 12          16          15
    -------------------------------------------------------------------------
      Income from continuing operations before
       income taxes (FTE)                        520         (28)      1,134
    Investment write-downs                       347(a)    1,241          73
    M&I expenses                                  68          97         126
    Restructuring charges                         10         181           -
    Support agreement charges                     (8)        163          14
    Goodwill impairment                           50           -           -
    Intangible amortization                      108         116         122
    -------------------------------------------------------------------------
      Income from continuing operations before
       income taxes (FTE) excluding investment
       write-downs,  M&I expenses,
       restructuring charges, support
       agreement charges, goodwill impairment
       and intangible amortization            $1,095      $1,770      $1,469

    Fee and other revenue - GAAP              $2,138      $1,816      $2,980
      Add: FTE increment - Fee revenue             8           9           9
    Net interest revenue - GAAP                  792       1,070         767
      Add: FTE increment - Net interest
       revenue                                     4           7           6
    -------------------------------------------------------------------------
      Total revenue (FTE)                      2,942       2,902       3,762
      Add: Investment write-downs                347(a)    1,241          73
    -------------------------------------------------------------------------
        Total revenue (FTE) excluding
         investment write-downs               $3,289      $4,143      $3,835

    Pre-tax operating margin (FTE) (b)            18%         (1)%        30%
    Pre-tax operating margin (FTE)
     excluding investment write-downs, M&I
     expenses, restructuring charges,
     support agreement charges, goodwill
     impairment and intangible
     amortization (b)                             33%         43%         38%
    -------------------------------------------------------------------------
    (a) Includes $295 million recorded in net securities gains (losses) and
    $52 million recorded in investment income.
    (b) Income before taxes divided by total revenue (FTE).



    -------------------------------------------------------------------------
    Return on common equity and tangible common equity
    (dollars in millions)                       1Q09        4Q08        1Q08
    -------------------------------------------------------------------------
    Net income applicable to common
     shareholders of The Bank of New York
     Mellon Corporation                         $322         $28        $746
    Add:  Intangible amortization                 66          71          75
    -------------------------------------------------------------------------
      Net income applicable to common
       shareholders of The Bank of New York
       Mellon Corporation before
       extraordinary loss excluding
       intangible amortization                   388          99         821
    Discontinued operations (income) loss          -          (1)          3
    Extraordinary loss on consolidation of
     commercial paper conduits, net of tax         -          26           -
    -------------------------------------------------------------------------
      Continuing operations                      388         124         824
    Add:  M&I expenses                            41          58          75
          Restructuring charges                    7         107           -
          Support agreement charges               (5)         97           8
          Goodwill impairment                     31           -           -
          Investment write-downs                 214         752          43
    -------------------------------------------------------------------------
    Net income from continuing operations
     before extraordinary loss excluding
     intangible amortization, M&I expenses,
     restructuring charges, support agreement
     charges, goodwill impairment and
     investment write-downs                     $676      $1,138        $950

    Average common shareholders' equity      $25,189     $26,812     $29,551
    Less:  Average goodwill                   15,837      16,121      16,581
           Average intangible assets           5,752       5,763       6,221
    Add:   Deferred tax liability - tax
            deductible goodwill                  624         599         516
           Deferred tax liability -
            non-tax deductible intangible
            assets                             1,808       1,841       1,986
    -------------------------------------------------------------------------
    Average tangible common shareholders'
     equity                                   $6,032      $7,368      $9,251

    Return on tangible common equity
     before extraordinary loss - GAAP           26.1%        6.7%       35.8%
    Return on tangible common equity
     before extraordinary loss excluding
    M&I expenses, restructuring charges,
     support agreement charges, goodwill
     impairment and investment write-downs      45.5%       61.5%       41.4%

    Return on common equity before
     extraordinary loss - GAAP                   5.2%        0.8%       10.2%
    Return on common equity before
     extraordinary loss excluding M&I
     expenses, restructuring charges,
     support agreement charges, goodwill
     impairment, investment write-downs
     and intangible amortization                10.9%       16.9%       12.9%
    -------------------------------------------------------------------------

    Calculation of tangible common shareholders' equity to assets
    (dollars in millions)                       1Q09        4Q08        1Q08
    -------------------------------------------------------------------------
    Common shareholders' equity at period
     end                                     $25,415     $25,264     $28,475
    Less:  Goodwill                           15,805      15,898      16,581
           Intangible assets                   5,717       5,856       6,353
    Add:   Deferred tax liability - tax
            deductible goodwill                  624         599         516
           Deferred tax liability - non-tax
            deductible intangible assets       1,808       1,841       1,986
    -------------------------------------------------------------------------
    Tangible common shareholders' equity at
     period end                               $6,325      $5,950      $8,043

    Total assets at period end              $203,478    $237,512    $204,935
    Less:  Goodwill                           15,805      15,898      16,581
           Intangible assets                   5,717       5,856       6,353
           Cash on deposit with the
            Federal Reserve and other
            central banks (a)                 29,679      53,278       1,236
           U.S. Government-backed
            commercial paper (a)                   -       5,629           -
    -------------------------------------------------------------------------
    Tangible total assets at period end     $152,277    $156,851    $180,765
    Tangible common shareholders' equity
     to tangible assets                          4.2%        3.8%        4.4%
    -------------------------------------------------------------------------
    (a) Assigned a zero percent risk weighting by the regulators.

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, the Company's ability to manage its business through the global recession; expectations with respect to the timing and amount of future dividends; building capital, pursuing growth opportunities and repayment of the TARP investment. These statements and other forward-looking statements contained in other public disclosures of The Bank of New York Mellon Corporation (the "Company") 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 the Company's control). Factors that could cause the Company's results to differ materially from those described in the forward-looking statements can be found in the risk factors set forth in the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2008 and the Company's other filings with the Securities and Exchange Commission. All forward-looking statements in this earnings release speak only as of April 21, 2009 and the Company 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.