Goldman Sachs 2021 US Financial Services Conference

Goldman Sachs

2021 US Financial Services Conference

D E C E M B E R 8 , 2 0 2 1

Emily Portney

Chief Financial Officer

Robin Vince

Vice Chair and Chief Executive Officer of Global Market Infrastructure

2 Goldman Sachs 2021 US Financial Services Conference

BNY Mellon is Powering the Financial World

• Vast client roster

• Global reach and scale

• Highly complementary businesses

• Market-leading positions

O U T S TA N D I N G

F R A N C H I S E

D I S C I P L I N E D

E XE C U T I O N

L O N G - T E R M

S H A R E H O L D E R

V A L U E

• Delivering the full franchiseto expand and deepen client relationships

• Investing and driving innovation

• Increasing efficiency

• Highly diversified and recurring fee revenue

• Low risk profile

• Significant earnings generation and capital returns

$300bn

Wealth Management

Client Assets(g)

$45trn

AUC/A(a)

$10trn

Avg. Daily Clearance

Value(c)

$1trn

LiquidityBalances(b)

$2.3trn

Avg. DailyU.S. Dollar

Payment Value(e)

$5trn

Avg. Tri-Party

Balances(d)

$2.3trn

AUM(f)

Note: See page 8 in the Appendix for corresponding footnotes.


New Business Segments Highlight Our Differentiated Franchise

Investment Services

Securities Services

Asset Servicing

Issuer Services

Market and

Wealth Services

Pershing

Treasury Services

Clearance and Collateral Management

Investment and

Wealth Management

Investment and

Wealth Management

Investment Management

Wealth Management

Additional transparency ✓Increased visibility of our differentiated businesses ✓

Better reflects how we manage the business ✓


Our Market and Wealth Services Business Segment Has DeliveredOutsized Profitability and Growth

(a) LTM – Last twelve months ended Sept. 30, 2021.(b) Total revenue and pre-tax income attributable to the Other segment were $(148)mm and $(294)mm, respectively over the last twelve months ended Sept. 30, 2021.(c) Net of distribution and servicing expense. See page 9 in the Appendix for the reconciliation of this non-GAAP measure.(d) Represents a non-GAAP measure. See page 9 in the Appendix for the corresponding reconciliation of this non-GAAP measure.

Revenue

$15.8bn firmwide

Pre-tax Income

$4.5bn firmwide

Pre-tax

Operating Margin

Fee Revenue Growth

Fir

mw

ide

Co

ntr

ibu

tio

n

1%

18%

2019 2020 YTD21(4)%

4% 5%

2019 2020 YTD21

4%

10%7%

2019 2020 YTD21

32% 29%34%

2019 2020 YTD21

26% 22% 22%

2019 2020 YTD21

44% 44%46%

2019 2020 YTD21

30%

Securities ServicesMarket and

Wealth Services

Investment and

Wealth Management

47%

45%

31%

25%

28%

$4.7bn

$7.2bn

$4.0bn

$2.1bn

$1.4bn

$1.3bn

(a)

(a)

(b)

(b)

(b)

(b)

(b)

(b)

29%26%

31%

3%1%

12%

(1)%0%

4%

4%

(7)% (7)%(4)% (4)%

Excluding MMF waivers(d) Excluding MMF waivers(d) Excluding MMF waivers(d)

Net of distribution and servicing expense(c)


Market and Wealth Services Businesses Have Leading Market Positions at the Center of the Financial Ecosystem

Pershing Treasury ServicesClearance and

Collateral Management

#1U.S. Clearing Firm(a)

>7mm

Investor Accounts(f)

Top 3RIA Custodian(b)

~1/3rd

of all U.S. RIAs with >$1bn in Assets Served(e)

$2.3trn

U.S. Dollar Payments Per Day(h)

1st

U.S. Bank to Originate a Paymenton the Real-Time Payments Network

Andto Launch Real-Time E-Bill and

Payment Capabilityto Billers and their Customers

#1Provider of Clearing & Settlementfor U.S. Government Securities

$10trn

Avg. Daily Clearance Value(j)

$5trn

Avg. Tri-Party Balances(k)

#1Provider of Global Collateral Services (i)

$2.6trn

AUC/A(c)

>$1trn

Products Distributedfor Asset Managers(d)

Top 5U.S. Dollar Payments Clearer(g)

Note: See page 8 in the Appendix for corresponding footnotes.


Market and Wealth Services Businesses Benefit from Secular Tailwinds

Pershing Treasury ServicesClearance and

Collateral Management

8% 7%8%

2019 2020 LTM

Net New Assets Flows(U.S. platform) (in % of beginning of period AUC)

6.6 6.9

7.2

2019 2020 YTD21

Avg. Active Clearing Accounts(mm)

225 222 234

2019 2020 YTD21

U.S. Dollar Payment Volume(avg. per day, 000’s)

2019 2020 YTD21

Avg. Client Deposits($bn)

2019 2020 YTD21

Avg. Tri-Party Balances($trn)U.S.

International

3.4 3.6 4.0

4766

84

Growth in advisor-led model andneed for scale

Proliferation ofReal-Time-Payments

Global move to Tri-Party and need for collateral optimization

2019 2020 YTD21

Avg. Daily Clearance Value($trn)

9.5 9.8 9.5

CAGR: Flat

Appendix


Footnotes

Page 2 –BNY Mellon is Powering the Financial World

(a) $45.3trn as of September 30, 2021. Consists of AUC/A primarily from the Asset Servicing business and, to a lesser extent, the Clearance and Collateral Management, Issuer Services, Pershing and Wealth Management businesses.

Includes the AUC/A of CIBC Mellon Global Securities Services Company (“CIBC Mellon”), a joint venture with the Canadian Imper ial Bank of Commerce, of $1.7trn at September 30, 2021.

(b) $1.2trn as of August 30, 2021. Includes deposits, money market fund balances, FICC cleared repo, and agency cash reinvestment s.

(c) $9.5trn average daily clearance value, year-to-date through September 30, 2021.

(d) $4,516bn for the quarter ended September 30, 2021.

(e) $2.3trn daily U.S. Dollar payment values, year-to-date throughSeptember 30, 2021.

(f) $2,310bn as of September 30, 2021. Excludes assets managed outside of the Investment and Wealth Management business segment.

(g) $307bn as of September 30, 2021. Includes AUM and AUC/A in the Wealth Management business.

Page 5 –Market and Wealth Services Businesses Have Leading Market Positions at the Center of the Financial Ecosystem

(a) InvestmentNews, 2020 and LaRoche, 2021. Based on number of broker-dealer clients.

(b) Discovery database and BNY Mellon analysis. As of year-end 2020. Includes Corporate RIAs, hybrid RIAs and independent RIA firms.

(c) $2.6trn as of September 30, 2021.

(d) As of September 30, 2021. Includes Mutual Funds, ETFs, Alternatives and Money Market Funds.

(e) Discovery database and BNY Mellon analysis. As of December 2021. Excludes Corporate RIAs and hybrid RIAs.

(f) Average active clearing accounts for the quarter ended September 30, 2021.

(g) Based on CHIPS volumes year-to-date through October 2021.

(h) $2.3trn daily U.S. Dollar payment values, year-to-date throughSeptember 30, 2021.

(i) Finadium Tri-Party Survey, March 2021. Data as of year-end 2020.

(j) $9.5trn average daily clearance value, year-to-date through September 30, 2021.

(k) $4,516bn for the quarter ended September 30, 2021.


Explanation of GAAP and Non-GAAP Financial Measures

(a) Income before income taxes divided by total revenue.

Fee revenue, Excluding Money Market Fee (“MMF”) Waivers Reconciliation

($mm) FY18 FY19 FY20 YTD20 YTD21

Market & Wealth Services total fee revenue – GAAP 3,280 3,409 3,516 2,654 2,666 4% 3% 0%

Less: MMF waivers - - (233) (143) (333)

Market & Wealth Services total fee revenue, excluding MMF waivers – non-GAAP 3,280 3,409 3,749 2,797 2,999 4% 10% 7%

Securities Services total fee revenue – GAAP 5,533 5,327 5,519 4,185 4,211 (4)% 4% 1%

Less: MMF waivers - - (31) (8) (185)

Securities Services total fee revenue, excluding MMF waivers – non-GAAP 5,533 5,327 5,550 4,193 4,396 (4)% 4% 5%

Investment & Wealth Management total fee revenue – GAAP 3,725 3,467 3,447 2,540 2,836 (7)% (1)% 12%

Less: MMF waivers (38) (49) (104) (68) (231)

Investment & Wealth Management total fee revenue, excluding MMF waivers – non-GAAP 3,763 3,516 3,551 2,608 3,067 (7)% 1% 18%

FY20 vs.

FY19

YTD21 vs.

YTD20

FY19 vs.

FY18

($mm) FY19 FY20 YTD21

Income before income taxes – GAAP 1,061 971 952

Total revenue – GAAP 3,707 3,692 3,022

Less: Distribution and servicing expense 376 338 225

Adjusted total revenue, net of distribution and servicing expense – non-GAAP 3,331 3,354 2,797

Pre-tax operating margin – GAAP (a)

29% 26% 31%

Adjusted pre-tax operating margin, net of distribution and servicing expense – non-GAAP (a)

32% 29% 34%


Cautionary Statement

A number of statements in this discussion and the responses to your questions may contain “forward-looking statements,” including statements about The Bank of New York Mellon Corporation’s(the “Corporation”) capital plans, strategic priorities, financial goals, organic growth, performance, organizational quality and efficiency, investments, including in technology and productdevelopment, resiliency, capabilities, revenue, net interest revenue, money market fee waivers, fees, expenses, cost discipline, sustainable growth, company management, human capitalmanagement (including related ambitions, objectives, aims and goals), deposits, interest rates and yield curves, securities portfolio, taxes, business opportunities, divestments, volatility andstatements regarding the Corporation's aspirations, as well as the Corporation’s overall plans, strategies, goals, objectives, expectations, outlooks, estimates, intentions, targets, opportunities, focusand initiatives, including the potential effects of the coronavirus pandemic on any of the foregoing. These statements may be expressed in a variety of ways, including the use of future or presenttense language. Words such as “estimate,” “forecast,” “project,” “anticipate,” “likely,” “target,” “expect,” “intend,” “continue,” “seek,” “believe,” “plan,” “goal,” “could,” “should,” “would,” “may,” “might,”“will,” “strategy,” “synergies,” opportunities,” “trends,” “ambition”, “objective,” “aim,” “future,” “potentially,” “outlook” and words of similar meaning may signify forward-looking statements. Theseforward-looking statements are based upon current beliefs and expectations and are subject to significant risks and uncertainties (some of which are beyond the Corporation’s control).

Actual outcomes may differ materially from those expressed or implied as a result of a number of factors, including, but not limited to, those discussed in “Risk Factors” in the Corporation’s AnnualReport on Form 10-K for the year ended December 31, 2020 (the “2020 Annual Report”) and in other filings of the Corporation with the Securities and Exchange Commission (the “SEC”).Statements about the effects of the current and near-term market and macroeconomic outlook on the Corporation, including on its business, operations, financial performance and prospects, mayconstitute forward-looking statements, and are based on assumptions that involve risks and uncertainties and that are subject to change based on various important factors (some of which arebeyond the Corporation's control), including the scope and duration of the pandemic, actions taken by governmental authorities and other third parties in response to the pandemic, the availability,use and effectiveness of vaccines, and the direct and indirect impact of the pandemic on the Corporation, its clients, customers and third parties. All forward-looking statements speak only as ofDecember 8, 2021, and the Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence ofunanticipated events. For additional information regarding theCorporation, please refer to the Corporation's SEC filings available at www.bnymellon.com/investorrelations.

Non-GAAP Measures: In this presentation we discuss certain non-GAAP measures in detailing the Corporation’s performance, which exclude certain items or otherwise include components thatdiffer from GAAP. We believe these measures are useful to the investment community in analyzing the financial results and trends of ongoing operations. We believe they facilitate comparisonswith prior periods and reflect the principal basis on which the Corporation’s management monitors financial performance. Additional disclosures relating to non-GAAP measures arecontained in theCorporation’s reports filed with the SEC, including the 2020 Annual Report, the Current Report on Form 8-K filed on October 19, 2021, the Quarterly Report on Form 10-Q for the quarter endedSeptember 30, 2021 and the Current Report on Form 8-K filed on December 8, 2021, and are available at www.bnymellon.com/investorrelations.

http://www.bnymellon.com/investorrelations

http://www.bnymellon.com/investorrelations

Goldman Sachs 2021 US Financial Services Conference

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