-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PghBSkfzRaNX7AffqnJZu11V4M7E0nLOD8jTdNd5ml9VqEpTO1D0va5YEqqwdWg1 6Ppbrtrbim18KvjgnvRPdg== 0000950109-02-002724.txt : 20020507 0000950109-02-002724.hdr.sgml : 20020507 ACCESSION NUMBER: 0000950109-02-002724 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020503 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020507 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MELLON FINANCIAL CORP CENTRAL INDEX KEY: 0000064782 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 251233834 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07410 FILM NUMBER: 02636610 BUSINESS ADDRESS: STREET 1: ONE MELLON BANK CTR STREET 2: 500 GRANT ST CITY: PITTSBURGH STATE: PA ZIP: 15258-0001 BUSINESS PHONE: 4122345000 FORMER COMPANY: FORMER CONFORMED NAME: MELLON BANK CORP DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: MELLON NATIONAL CORP DATE OF NAME CHANGE: 19841014 8-K 1 d8k.htm FORM 8-K Prepared by R.R. Donnelley Financial -- Form 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported) – May 3, 2002
 
MELLON FINANCIAL CORPORATION
(Exact name of registrant as specified in charter)
 
 
Pennsylvania
  
1-7410
  
25-1233834
(State or other jurisdiction of incorporation)
  
(Commission File Number)
  
(I.R.S. Employer Identification No.)
         
   
One Mellon Center
500 Grant Street Pittsburgh, Pennsylvania
  
15258
   
(Address of principal executive offices)
  
(Zip code)
 
Registrant’s telephone number, including area code – (412) 234-5000
 

ITEM 7.    FINANCIAL STATEMENTS AND EXHIBITS
 
The following exhibit is filed herewith.
 
Exhibit
Number
   
Description
99.1
   
Mellon Financial Corporation Business Sector Financial Information in revised sector format adopted for 2002.
 
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
   
MELLON FINANCIAL CORPORATION
Date:    May 6, 2002
  
By:
   
/s/    MICHAEL A. BRYSON
        
Michael A. Bryson
        
Chief Financial Officer

EXHIBIT INDEX
 
 
Number
   
Description
   
Method of Filing
99.1
   
Mellon Financial Corporation Business Sector Financial Information in revised sector format adopted for 2002.
   
Filed herewith
EX-99.1 4 dex991.htm FINANCIAL INFORMATION Prepared by R.R. Donnelley Financial -- Financial Information
EXHIBIT 99.1
 
MELLON FINANCIAL CORPORATION
BUSINESS SECTORS  —  NEW GAAP (a)
 
   
Institutional Asset Mgmt
    
Mutual Funds
    
Private Wealth Mgmt
    
Asset Servicing
  
($ millions)
  
2001
    
2000
    
2001
    
2000
    
2001
    
2000
    
2001
    
2000
  
Trust fees
  
$
526.6
 
  
$
494.8
 
  
$
537.8
 
  
$
538.2
 
  
$
312.8
 
  
$
312.7
 
  
$
450.5
 
  
$
408.6
 
Other fee revenue
  
 
19.7
 
  
 
22.4
 
  
 
3.2
 
  
 
23.5
 
  
 
14.5
 
  
 
11.2
 
  
 
169.3
 
  
 
147.7
 
Net interest revenue / (expense)
  
 
(13.6
)
  
 
(3.5
)
  
 
1.0
 
  
 
(7.4
)
  
 
164.3
 
  
 
125.4
 
  
 
107.4
 
  
 
94.7
 
   
 
 
 
 
 
 
 
Total revenue
  
 
532.7
 
  
 
513.7
 
  
 
542.0
 
  
 
554.3
 
  
 
491.6
 
  
 
449.3
 
  
 
727.2
 
  
 
651.0
 
Credit quality expense / (revenue)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
0.6
 
  
 
0.7
 
  
 
—  
 
  
 
—  
 
Total operating expense
  
 
385.7
 
  
 
342.4
 
  
 
328.0
 
  
 
326.3
 
  
 
254.0
 
  
 
233.5
 
  
 
451.6
 
  
 
395.1
 
   
 
 
 
 
 
 
 
Income from continuing operations before taxes (benefits)
  
 
147.0
 
  
 
171.3
 
  
 
214.0
 
  
 
228.0
 
  
 
237.0
 
  
 
215.1
 
  
 
275.6
 
  
 
255.9
 
Income taxes (benefits)
  
 
55.1
 
  
 
64.5
 
  
 
84.8
 
  
 
92.6
 
  
 
84.5
 
  
 
77.2
 
  
 
95.3
 
  
 
89.8
 
   
 
 
 
 
 
 
 
Income (loss) from continuing operations
  
 
91.9
 
  
 
106.8
 
  
 
129.2
 
  
 
135.4
 
  
 
152.5
 
  
 
137.9
 
  
 
180.3
 
  
 
166.1
 
Income (loss) from discontinued operations after-tax (b)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
 
 
 
 
 
 
Net income (loss)
  
$
91.9
 
  
$
106.8
 
  
$
129.2
 
  
$
135.4
 
  
$
152.5
 
  
$
137.9
 
  
$
180.3
 
  
$
166.1
 
   
 
 
 
 
 
 
 
($ Billions)
                                                                
Average loans
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
2.4
 
  
 
2.3
 
  
 
—  
 
  
 
—  
 
Average assets (c)
  
 
0.9
 
  
 
0.8
 
  
 
0.6
 
  
 
0.7
 
  
 
4.8
 
  
 
4.6
 
  
 
3.2
 
  
 
3.5
 
Average deposits
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
4.2
 
  
 
4.1
 
  
 
2.2
 
  
 
2.4
 
Average common equity
  
 
0.2
 
  
 
0.2
 
  
 
0.4
 
  
 
0.3
 
  
 
0.2
 
  
 
0.2
 
  
 
0.5
 
  
 
0.4
 
Average Tier I preferred equity
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Assets under management (period end)
  
 
349
 
  
 
322
 
  
 
152
 
  
 
112
 
  
 
49
 
  
 
56
 
  
 
41
 
  
 
40
 
Assets under administration or custody (period end)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
21
 
  
 
33
 
  
 
2,029
 
  
 
2,225
 
Contribution to EPS (e)
  
$
0.19
 
  
$
0.21
 
  
$
0.27
 
  
$
0.27
 
  
$
0.32
 
  
$
0.28
 
  
$
0.38
 
  
$
0.33
 
Return on common equity (e)
  
 
41
%
  
 
57
%
  
 
36
%
  
 
42
%
  
 
68
%
  
 
60
%
  
 
39
%
  
 
40
%
Pretax operating margin (e)
  
 
28
%
  
 
33
%
  
 
39
%
  
 
41
%
  
 
48
%
  
 
48
%
  
 
38
%
  
 
39
%
Pretax operating margin (d)(e)
  
 
28
%
  
 
33
%
  
 
39
%
  
 
41
%
  
 
49
%
  
 
48
%
  
 
38
%
  
 
39
%
 
(a)
 
Results exclude the impact of the amortization of goodwill from purchase acquisitions.
(b)
 
Net income (loss) from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.
(c)
 
Where average deposits are in excess of average loans, average assets include an allocation of investment securities to balance.
(d)
 
Excludes amortization of other intangibles.
(e)
 
Ratios excludes the impact of the venture capital fair market value adjustments, loss on disposition of loans & commitments and nonoperating charges for 2001.
In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a FASB staff announcement.
The Corporation had historically reported expense reimbursement as a reduction of expenses. Prior period amounts have been reclassified.

MELLON FINANCIAL CORPORATION
BUSINESS SECTORS — NEW GAAP (a)
 
    
Human Resources Services
    
Treasury Services
    
Total Core
    
Other Activities
    
Consolidated Results
  
($ millions)
   
2001
    
2000
    
2001
    
2000
    
2001
    
2000
    
2001
    
2000
    
2001
    
2000
  
Trust fees
   
$
732.1
 
  
$
469.5
 
  
$
6.7
 
  
$
4.0
 
  
$
2,566.5
 
  
$
2,227.8
 
  
$
(11.8
)
  
$
33.5
 
  
$
2,554.7
 
  
$
2,261.3
 
Other fee revenue
   
 
1.1
 
  
 
2.6
 
  
 
349.2
 
  
 
302.2
 
  
 
557.0
 
  
 
509.6
 
  
 
(319.4
)
  
 
171.0
 
  
 
237.6
 
  
 
680.6
 
Net interest revenue / (expense)
   
 
(12.1
)
  
 
(7.6
)
  
 
394.6
 
  
 
369.5
 
  
 
641.6
 
  
 
571.1
 
  
 
(60.0
)
  
 
(16.4
)
  
 
581.6
 
  
 
554.7
 
    
 
 
 
 
 
 
 
 
 
Total revenue
   
 
721.1
 
  
 
464.5
 
  
 
750.5
 
  
 
675.7
 
  
 
3,765.1
 
  
 
3,308.5
 
  
 
(391.2
)
  
 
188.1
 
  
 
3,373.9
 
  
 
3,496.6
 
Credit quality expense / (revenue)
   
 
—  
 
  
 
—  
 
  
 
2.4
 
  
 
9.6
 
  
 
3.0
 
  
 
10.3
 
  
 
(7.9
)
  
 
(2.3
)
  
 
(4.9
)
  
 
8.0
 
Total operating expense
   
 
668.2
 
  
 
440.3
 
  
 
441.0
 
  
 
403.8
 
  
 
2,528.5
 
  
 
2,141.4
 
  
 
50.6
 
  
 
54.0
 
  
 
2,579.1
 
  
 
2,195.4
 
    
 
 
 
 
 
 
 
 
 
Income from continuing operations before taxes (benefits)
   
 
52.9
 
  
 
24.2
 
  
 
307.1
 
  
 
262.3
 
  
 
1,233.6
 
  
 
1,156.8
 
  
 
(433.9
)
  
 
136.4
 
  
 
799.7
 
  
 
1,293.2
 
Income taxes (benefits)
   
 
17.8
 
  
 
8.1
 
  
 
106.9
 
  
 
92.1
 
  
 
444.4
 
  
 
424.3
 
  
 
(146.7
)
  
 
50.1
 
  
 
297.7
 
  
 
474.4
 
    
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
   
 
35.1
 
  
 
16.1
 
  
 
200.2
 
  
 
170.2
 
  
 
789.2
 
  
 
732.5
 
  
 
(287.2
)
  
 
86.3
 
  
 
502.0
 
  
 
818.8
 
Income (loss) from discontinued operations after-tax (b)
   
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
912.8
 
  
 
291.2
 
    
 
 
 
 
 
 
 
 
 
Net income (loss)
   
$
35.1
 
  
$
16.1
 
  
$
200.2
 
  
$
170.2
 
  
$
789.2
 
  
$
732.5
 
  
$
(287.2
)
  
$
86.3
 
  
$
1,414.8
 
  
$
1,110.0
 
    
 
 
 
 
 
 
 
 
 
($ Billions)
                                                                                 
Average loans
   
 
—  
 
  
 
—  
 
  
 
5.6
 
  
 
6.6
 
  
 
8.0
 
  
 
8.9
 
  
 
1.8
 
  
 
1.8
 
  
 
9.8
 
  
 
10.7
 
Average assets (c)
   
 
1.0
 
  
 
0.7
 
  
 
9.2
 
  
 
9.9
 
  
 
19.7
 
  
 
20.2
 
  
 
13.0
 
  
 
7.8
 
  
 
32.7
 
  
 
28.0
 
Average deposits
   
 
0.1
 
  
 
0.1
 
  
 
7.7
 
  
 
6.6
 
  
 
14.2
 
  
 
13.2
 
  
 
3.4
 
  
 
3.2
 
  
 
17.6
 
  
 
16.4
 
Average common equity
   
 
0.2
 
  
 
0.1
 
  
 
0.8
 
  
 
0.9
 
  
 
2.3
 
  
 
2.1
 
  
 
1.4
 
  
 
1.8
 
  
 
3.7
 
  
 
3.9
 
Average Tier I preferred equity
   
 
—  
 
  
 
—  
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.8
 
  
 
0.8
 
  
 
1.0
 
  
 
1.0
 
Assets under management (period end)
   
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
591
 
  
 
530
 
  
 
1
 
  
 
—  
 
  
 
592
 
  
 
530
 
Assets under administration or custody (period end)
   
 
32
 
  
 
8
 
  
 
—  
 
  
 
—  
 
  
 
2,082
 
  
 
2,266
 
  
 
—  
 
  
 
1
 
  
 
2,082
 
  
 
2,267
 
Contribution to EPS (e)
   
$
0.07
 
  
$
0.03
 
  
$
0.42
 
  
$
0.34
 
  
$
1.65
 
  
$
1.46
 
  
$
0.06
 
  
$
0.19
 
  
$
1.71
 
  
$
1.65
 
Return on common equity (e)
   
 
21
%
  
 
19
%
  
 
24
%
  
 
18
%
  
 
35
%
  
 
34
%
  
 
n/m
 
  
 
n/m
 
  
 
22
%
  
 
21
%
Pretax operating margin (e)
   
 
7
%
  
 
5
%
  
 
41
%
  
 
39
%
  
 
33
%
  
 
35
%
  
 
n/m
 
  
 
n/m
 
  
 
34
%
  
 
37
%
Pretax operating margin (d)(e)
   
 
7
%
  
 
5
%
  
 
41
%
  
 
39
%
  
 
33
%
  
 
35
%
  
 
n/m
 
  
 
n/m
 
  
 
34
%
  
 
37
%
 
(a)
 
Results exclude the impact of the amortization of goodwill from purchase acquisitions.
(b)
 
Net income (loss) from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.
(c)
 
Where average deposits are in excess of average loans, average assets include an allocation of investment securities to balance.
(d)
 
Excludes amortization of other intangibles.
(e)
 
Ratios excludes the impact of the venture capital fair market value adjustments, loss on disposition of loans & commitments and nonoperating charges for 2001.
In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a FASB staff announcement.
The Corporation had historically reported expense reimbursement as a reduction of expenses. Prior period amounts have been reclassified.

MELLON FINANCIAL CORPORATION
BUSINESS SECTORS – NEW GAAP (a)
INSTITUTIONAL ASSET MANAGEMENT – 9 Quarter Trend
 
   
2000
     
2001
     
2002
  
($ millions)
  
1st
Qtr
    
2nd
Qtr
    
3rd
Qtr
    
4th
Qtr
     
1st
Qtr
    
2nd
Qtr
    
3rd
Qtr
    
4th
Qtr
     
1st
Qtr
  
Trust fees
  
$
126.5
 
  
$
110.4
 
  
$
119.8
 
  
$
138.1
 
   
$
120.8
 
  
$
119.3
 
  
$
126.8
 
  
$
159.7
 
   
$
147.3
 
Other fee revenue
  
 
5.4
 
  
 
6.2
 
  
 
6.4
 
  
 
4.4
 
   
 
2.7
 
  
 
4.5
 
  
 
7.8
 
  
 
4.7
 
   
 
6.5
 
Net interest revenue / (expense)
  
 
(2.1
)
  
 
(1.4
)
  
 
0.1
 
  
 
(0.1
)
   
 
(1.2
)
  
 
(0.6
)
  
 
(5.7
)
  
 
(6.1
)
   
 
(6.8
)
   
 
 
 
  
 
 
 
  
Total revenue
  
 
129.8
 
  
 
115.2
 
  
 
126.3
 
  
 
142.4
 
   
 
122.3
 
  
 
123.2
 
  
 
128.9
 
  
 
158.3
 
   
 
147.0
 
Credit quality expense / (revenue)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
—  
 
Total operating expense
  
 
86.7
 
  
 
77.1
 
  
 
78.3
 
  
 
100.3
 
   
 
87.1
 
  
 
83.1
 
  
 
98.1
 
  
 
117.4
 
   
 
117.6
 
   
 
 
 
  
 
 
 
  
Income from continuing operations before
taxes (benefits)
  
 
43.1
 
  
 
38.1
 
  
 
48.0
 
  
 
42.1
 
   
 
35.2
 
  
 
40.1
 
  
 
30.8
 
  
 
40.9
 
   
 
29.4
 
Income taxes (benefits)
  
 
16.2
 
  
 
14.5
 
  
 
18.1
 
  
 
15.7
 
   
 
13.3
 
  
 
15.3
 
  
 
12.1
 
  
 
14.4
 
   
 
11.2
 
   
 
 
 
  
 
 
 
  
Income (loss) from continuing operations
  
 
26.9
 
  
 
23.6
 
  
 
29.9
 
  
 
26.4
 
   
 
21.9
 
  
 
24.8
 
  
 
18.7
 
  
 
26.5
 
   
 
18.2
 
Income (loss) from discontinued
operations after-tax (b)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
—  
 
   
 
 
 
  
 
 
 
  
Net income (loss)
  
$
26.9
 
  
$
23.6
 
  
$
29.9
 
  
$
26.4
 
   
$
21.9
 
  
$
24.8
 
  
$
18.7
 
  
$
26.5
 
   
$
18.2
 
   
 
 
 
  
 
 
 
  
($ Billions)
                                                                          
Average loans
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
—  
 
Average assets (c)
  
 
0.8
 
  
 
0.8
 
  
 
0.7
 
  
 
0.7
 
   
 
0.7
 
  
 
0.8
 
  
 
1.0
 
  
 
1.1
 
   
 
1.2
 
Average deposits
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
—  
 
Average common equity
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
   
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
   
 
0.2
 
Average Tier I preferred equity
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
—  
 
Assets under management (period end)
  
 
304
 
  
 
316
 
  
 
330
 
  
 
322
 
   
 
306
 
  
 
318
 
  
 
331
 
  
 
349
 
   
 
350
 
Assets under administration or custody (period end)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
7
 
Contribution to EPS (e)
  
$
0.05
 
  
$
0.05
 
  
$
0.06
 
  
$
0.05
 
   
$
0.04
 
  
$
0.06
 
  
$
0.04
 
  
$
0.05
 
   
$
0.04
 
Return on common equity (e)
  
 
59
%
  
 
51
%
  
 
62
%
  
 
54
%
   
 
44
%
  
 
48
%
  
 
32
%
  
 
43
%
   
 
32
%
Pretax operating margin (e)
  
 
33
%
  
 
33
%
  
 
38
%
  
 
30
%
   
 
29
%
  
 
33
%
  
 
24
%
  
 
26
%
   
 
20
%
Pretax operating margin (d)(e)
  
 
33
%
  
 
33
%
  
 
38
%
  
 
30
%
   
 
29
%
  
 
33
%
  
 
24
%
  
 
26
%
   
 
20
%
 
(a)
 
Results exclude the impact of the amortization of goodwill from purchase acquisitions.
(b)
 
Net income (loss) from discontinued operations has not been allocated to any of the corporation’s reportable sectors.
(c)
 
Where average deposits are in excess of average loans, average assets include an allocation of investment securities to balance.
(d)
 
Excludes amortization of other intangibles.
(e)
 
Ratios excludes the impact of the venture capital fair market value adjustments, loss on disposition of loans & commitments and nonoperating charges for 2001.
In January 2002, the corporation began to record customer expense reimbursements as revenue in accordance with a FASB staff announcement.
The corporation had historically reported expense reimbursement as a reduction of expenses. Prior period amounts have been reclassified.

MELLON FINANCIAL CORPORATION
BUSINESS SECTORS – NEW GAAP (a)
MUTUAL FUNDS – 9 Quarter Trend
 
   
2000
    
2001
    
2002
  
($ millions)
  
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
  
Trust fees
  
$
134.0
 
  
$
133.7
 
  
$
137.8
 
  
$
132.7
 
  
$
127.5
 
  
$
126.2
 
  
$
140.5
 
  
$
143.6
 
  
$
142.2
 
Other fee revenue
  
 
11.7
 
  
 
3.3
 
  
 
2.4
 
  
 
6.2
 
  
 
2.2
 
  
 
2.7
 
  
 
(1.5
)
  
 
(0.1
)
  
 
(1.2
)
Net interest revenue / (expense)
  
 
(2.6
)
  
 
(2.5
)
  
 
(1.5
)
  
 
(0.8
)
  
 
(0.3
)
  
 
—  
 
  
 
0.3
 
  
 
1.0
 
  
 
1.4
 
   
 
 
 
 
 
 
 
 
Total revenue
  
 
143.1
 
  
 
134.5
 
  
 
138.7
 
  
 
138.1
 
  
 
129.4
 
  
 
128.9
 
  
 
139.3
 
  
 
144.5
 
  
 
142.4
 
Credit quality expense / (revenue)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Total operating expense
  
 
81.1
 
  
 
83.9
 
  
 
81.4
 
  
 
79.9
 
  
 
78.6
 
  
 
73.8
 
  
 
83.8
 
  
 
91.8
 
  
 
84.1
 
   
 
 
 
 
 
 
 
 
Income from continuing operations before
taxes (benefits)
  
 
62.0
 
  
 
50.6
 
  
 
57.3
 
  
 
58.2
 
  
 
50.8
 
  
 
55.1
 
  
 
55.5
 
  
 
52.7
 
  
 
58.3
 
Income taxes (benefits)
  
 
25.1
 
  
 
20.6
 
  
 
23.2
 
  
 
23.7
 
  
 
19.6
 
  
 
22.5
 
  
 
22.6
 
  
 
20.1
 
  
 
23.4
 
   
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
  
 
36.9
 
  
 
30.0
 
  
 
34.1
 
  
 
34.5
 
  
 
31.2
 
  
 
32.6
 
  
 
32.9
 
  
 
32.6
 
  
 
34.9
 
Income (loss) from discontinued
operations after-tax (b)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
 
 
 
 
 
 
 
Net income (loss)
  
$
36.9
 
  
$
30.0
 
  
$
34.1
 
  
$
34.5
 
  
$
31.2
 
  
$
32.6
 
  
$
32.9
 
  
$
32.6
 
  
$
34.9
 
   
 
 
 
 
 
 
 
 
($ Billions)
                                                                        
Average loans
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Average assets (c)
  
 
0.7
 
  
 
0.7
 
  
 
0.7
 
  
 
0.7
 
  
 
0.7
 
  
 
0.6
 
  
 
0.6
 
  
 
0.6
 
  
 
0.7
 
Average deposits
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Average common equity
  
 
0.3
 
  
 
0.3
 
  
 
0.3
 
  
 
0.3
 
  
 
0.3
 
  
 
0.4
 
  
 
0.4
 
  
 
0.4
 
  
 
0.4
 
Average Tier I preferred equity
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Assets under management (period end)
  
 
109
 
  
 
106
 
  
 
113
 
  
 
112
 
  
 
120
 
  
 
133
 
  
 
131
 
  
 
152
 
  
 
164
 
Assets under administration or custody (period end)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Contribution to EPS (e)
  
$
0.07
 
  
$
0.06
 
  
$
0.07
 
  
$
0.07
 
  
$
0.06
 
  
$
0.07
 
  
$
0.07
 
  
$
0.07
 
  
$
0.08
 
Return on common equity (e)
  
 
48
%
  
 
38
%
  
 
41
%
  
 
40
%
  
 
36
%
  
 
38
%
  
 
36
%
  
 
35
%
  
 
36
%
Pretax operating margin (e)
  
 
43
%
  
 
38
%
  
 
41
%
  
 
42
%
  
 
39
%
  
 
43
%
  
 
40
%
  
 
36
%
  
 
41
%
Pretax operating margin (d)(e)
  
 
43
%
  
 
38
%
  
 
41
%
  
 
42
%
  
 
39
%
  
 
43
%
  
 
40
%
  
 
36
%
  
 
41
%
 
(a)
 
Results exclude the impact of the amortization of goodwill from purchase acquisitions.
(b)
 
Net income (loss) from discontinued operations has not been allocated to any of the corporation’s reportable sectors.
(c)
 
Where average deposits are in excess of average loans, average assets include an allocation of investment securities to balance.
(d)
 
Excludes amortization of other intangibles.
(e)
 
Ratios excludes the impact of the venture capital fair market value adjustments, loss on disposition of loans & commitments and nonoperating charges for 2001.
In January 2002, the corporation began to record customer expense reimbursements as revenue in accordance with a FASB staff announcement.
The corporation had historically reported expense reimbursement as a reduction of expenses. Prior period amounts have been reclassified.

MELLON FINANCIAL CORPORATION
BUSINESS SECTORS – NEW GAAP (a)
PRIVATE WEALTH MANAGEMENT – 9 Quarter Trend
 
   
2000
    
2001
    
2002
  
($ millions)
  
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
  
Trust fees
  
$
74.2
 
  
$
74.7
 
  
$
79.3
 
  
$
84.5
 
  
$
81.3
 
  
$
81.3
 
  
$
79.8
 
  
$
70.4
 
  
$
80.1
 
Other fee revenue
  
 
1.6
 
  
 
4.1
 
  
 
2.9
 
  
 
2.6
 
  
 
2.7
 
  
 
2.9
 
  
 
2.9
 
  
 
5.9
 
  
 
3.4
 
Net interest revenue / (expense)
  
 
28.2
 
  
 
32.1
 
  
 
31.8
 
  
 
33.3
 
  
 
33.8
 
  
 
37.9
 
  
 
43.4
 
  
 
49.2
 
  
 
53.2
 
   
 
 
 
 
 
 
 
 
Total revenue
  
 
104.0
 
  
 
110.9
 
  
 
114.0
 
  
 
120.4
 
  
 
117.8
 
  
 
122.1
 
  
 
126.1
 
  
 
125.5
 
  
 
136.7
 
Credit quality expense / (revenue)
  
 
0.1
 
  
 
—  
 
  
 
0.3
 
  
 
0.3
 
  
 
—  
 
  
 
0.1
 
  
 
0.2
 
  
 
0.3
 
  
 
0.8
 
Total operating expense
  
 
56.7
 
  
 
58.4
 
  
 
60.1
 
  
 
58.3
 
  
 
60.3
 
  
 
62.1
 
  
 
62.1
 
  
 
69.5
 
  
 
70.0
 
   
 
 
 
 
 
 
 
 
Income from continuing operations before
taxes (benefits)
  
 
47.2
 
  
 
52.5
 
  
 
53.6
 
  
 
61.8
 
  
 
57.5
 
  
 
59.9
 
  
 
63.8
 
  
 
55.7
 
  
 
65.9
 
Income taxes (benefits)
  
 
16.9
 
  
 
18.8
 
  
 
19.4
 
  
 
22.1
 
  
 
20.7
 
  
 
21.8
 
  
 
23.2
 
  
 
18.8
 
  
 
23.6
 
   
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
  
 
30.3
 
  
 
33.7
 
  
 
34.2
 
  
 
39.7
 
  
 
36.8
 
  
 
38.1
 
  
 
40.6
 
  
 
36.9
 
  
 
42.3
 
Income (loss) from discontinued
operations after-tax (b)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
 
 
 
 
 
 
 
Net income (loss)
  
$
30.3
 
  
$
33.7
 
  
$
34.2
 
  
$
39.7
 
  
$
36.8
 
  
$
38.1
 
  
$
40.6
 
  
$
36.9
 
  
$
42.3
 
   
 
 
 
 
 
 
 
 
($ Billions)
                                                                        
Average loans
  
 
2.3
 
  
 
2.2
 
  
 
2.3
 
  
 
2.4
 
  
 
2.3
 
  
 
2.3
 
  
 
2.4
 
  
 
2.4
 
  
 
2.5
 
Average assets (c)
  
 
4.4
 
  
 
4.6
 
  
 
4.7
 
  
 
4.7
 
  
 
4.9
 
  
 
4.7
 
  
 
4.6
 
  
 
5.2
 
  
 
5.1
 
Average deposits
  
 
3.9
 
  
 
4.1
 
  
 
4.2
 
  
 
4.2
 
  
 
4.2
 
  
 
4.0
 
  
 
3.9
 
  
 
4.6
 
  
 
4.5
 
Average common equity
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
Average Tier I preferred equity
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Assets under management (period end)
  
 
57
 
  
 
56
 
  
 
57
 
  
 
56
 
  
 
50
 
  
 
52
 
  
 
46
 
  
 
50
 
  
 
51
 
Assets under administration or custody (period end)
  
 
37
 
  
 
35
 
  
 
33
 
  
 
33
 
  
 
31
 
  
 
24
 
  
 
21
 
  
 
21
 
  
 
20
 
Contribution to EPS (e)
  
$
0.06
 
  
$
0.07
 
  
$
0.07
 
  
$
0.08
 
  
$
0.08
 
  
$
0.07
 
  
$
0.09
 
  
$
0.08
 
  
$
0.09
 
Return on common equity (e)
  
 
56
%
  
 
60
%
  
 
56
%
  
 
66
%
  
 
66
%
  
 
70
%
  
 
72
%
  
 
64
%
  
 
83
%
Pretax operating margin (e)
  
 
45
%
  
 
47
%
  
 
47
%
  
 
51
%
  
 
49
%
  
 
49
%
  
 
51
%
  
 
44
%
  
 
48
%
Pretax operating margin (d)(e)
  
 
46
%
  
 
48
%
  
 
48
%
  
 
53
%
  
 
49
%
  
 
50
%
  
 
52
%
  
 
45
%
  
 
49
%
 
(a)
 
Results exclude the impact of the amortization of goodwill from purchase acquisitions.
(b)
 
Net income (loss) from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.
(c)
 
Where average deposits are in excess of average loans, average assets include an allocation of investment securities to balance.
(d)
 
Excludes amortization of other intangibles.
(e)
 
Ratios excludes the impact of the venture capital fair market value adjustments, loss on disposition of loans & commitments and nonoperating charges for 2001.
In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a FASB staff announcement.
The Corporation had historically reported expense reimbursement as a reduction of expenses. Prior period amounts have been reclassified.

MELLON FINANCIAL CORPORATION
BUSINESS SECTORS – NEW GAAP (a)
ASSET SERVICING – 9 Quarter Trend
 
   
2000
    
2001
    
2002
  
($ millions)
  
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
  
Trust fees
  
$
99.0
 
  
$
106.3
 
  
$
103.3
 
  
$
100.0
 
  
$
108.8
 
  
$
119.0
 
  
$
105.0
 
  
$
117.7
 
  
$
125.1
 
Other fee revenue
  
 
43.3
 
  
 
35.8
 
  
 
33.3
 
  
 
35.3
 
  
 
44.4
 
  
 
43.4
 
  
 
40.2
 
  
 
41.3
 
  
 
26.5
 
Net interest revenue / (expense)
  
 
19.8
 
  
 
22.2
 
  
 
25.8
 
  
 
26.9
 
  
 
27.7
 
  
 
23.3
 
  
 
26.5
 
  
 
29.9
 
  
 
27.8
 
   
 
 
 
 
 
 
 
 
Total revenue
  
 
162.1
 
  
 
164.3
 
  
 
162.4
 
  
 
162.2
 
  
 
180.9
 
  
 
185.7
 
  
 
171.7
 
  
 
188.9
 
  
 
179.4
 
Credit quality expense / (revenue)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Total operating expense
  
 
93.2
 
  
 
95.4
 
  
 
101.5
 
  
 
105.0
 
  
 
107.9
 
  
 
110.6
 
  
 
107.6
 
  
 
125.5
 
  
 
128.2
 
   
 
 
 
 
 
 
 
 
Income from continuing operations before
taxes (benefits)
  
 
68.9
 
  
 
68.9
 
  
 
60.9
 
  
 
57.2
 
  
 
73.0
 
  
 
75.1
 
  
 
64.1
 
  
 
63.4
 
  
 
51.2
 
Income taxes (benefits)
  
 
24.2
 
  
 
24.3
 
  
 
21.2
 
  
 
20.1
 
  
 
25.8
 
  
 
26.4
 
  
 
22.5
 
  
 
20.6
 
  
 
18.2
 
   
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
  
 
44.7
 
  
 
44.6
 
  
 
39.7
 
  
 
37.1
 
  
 
47.2
 
  
 
48.7
 
  
 
41.6
 
  
 
42.8
 
  
 
33.0
 
Income (loss) from discontinued
operations after-tax (b)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
 
 
 
 
 
 
 
Net income (loss)
  
$
44.7
 
  
$
44.6
 
  
$
39.7
 
  
$
37.1
 
  
$
47.2
 
  
$
48.7
 
  
$
41.6
 
  
$
42.8
 
  
$
33.0
 
   
 
 
 
 
 
 
 
 
($ Billions)
                                                                        
Average loans
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Average assets (c)
  
 
3.1
 
  
 
3.6
 
  
 
3.6
 
  
 
3.7
 
  
 
3.7
 
  
 
3.1
 
  
 
3.2
 
  
 
2.9
 
  
 
2.7
 
Average deposits
  
 
2.2
 
  
 
2.4
 
  
 
2.4
 
  
 
2.6
 
  
 
2.6
 
  
 
2.0
 
  
 
2.2
 
  
 
2.0
 
  
 
1.7
 
Average common equity
  
 
0.4
 
  
 
0.4
 
  
 
0.4
 
  
 
0.4
 
  
 
0.5
 
  
 
0.5
 
  
 
0.5
 
  
 
0.5
 
  
 
0.5
 
Average Tier I preferred equity
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Assets under management (period end)
  
 
41
 
  
 
43
 
  
 
40
 
  
 
40
 
  
 
44
 
  
 
43
 
  
 
39
 
  
 
41
 
  
 
45
 
Assets under administration or custody (period end)
  
 
2,215
 
  
 
2,213
 
  
 
2,256
 
  
 
2,226
 
  
 
2,213
 
  
 
2,243
 
  
 
2,029
 
  
 
2,029
 
  
 
2,162
 
Contribution to EPS (e)
  
$
0.09
 
  
$
0.09
 
  
$
0.08
 
  
$
0.07
 
  
$
0.10
 
  
$
0.10
 
  
$
0.09
 
  
$
0.09
 
  
$
0.07
 
Return on common equity (e)
  
 
44
%
  
 
43
%
  
 
37
%
  
 
34
%
  
 
42
%
  
 
42
%
  
 
35
%
  
 
35
%
  
 
29
%
Pretax operating margin (e)
  
 
43
%
  
 
42
%
  
 
38
%
  
 
35
%
  
 
40
%
  
 
40
%
  
 
37
%
  
 
34
%
  
 
29
%
Pretax operating margin (d)(e)
  
 
43
%
  
 
42
%
  
 
38
%
  
 
35
%
  
 
40
%
  
 
40
%
  
 
37
%
  
 
34
%
  
 
29
%
 
(a)
 
Results exclude the impact of the amortization of goodwill from purchase acquisitions.
(b)
 
Net income (loss) from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.
(c)
 
Where average deposits are in excess of average loans, average assets include an allocation of investment securities to balance.
(d)
 
Excludes amortization of other intangibles.
(e)
 
Ratios excludes the impact of the venture capital fair market value adjustments, loss on disposition of loans & commitments and nonoperating charges for 2001.
In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a FASB staff announcement.
The Corporation had historically reported expense reimbursement as a reduction of expenses. Prior period amounts have been reclassified.

MELLON FINANCIAL CORPORATION
BUSINESS SECTORS – NEW GAAP (a)
HUMAN RESOURCES SERVICES – 9 Quarter Trend
 
   
2000
    
2001
    
2002
  
($ millions)
  
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
  
Trust fees
  
$
105.2
 
  
$
118.7
 
  
$
115.1
 
  
$
130.5
 
  
$
180.9
 
  
$
193.1
 
  
$
178.1
 
  
$
180.0
 
  
$
278.6
 
Other fee revenue
  
 
1.1
 
  
 
1.0
 
  
 
0.6
 
  
 
(0.1
)
  
 
(0.8
)
  
 
(0.5
)
  
 
(0.9
)
  
 
3.4
 
  
 
1.7
 
Net interest revenue / (expense)
  
 
(1.0
)
  
 
(2.1
)
  
 
(1.5
)
  
 
(3.0
)
  
 
(2.4
)
  
 
(3.2
)
  
 
(3.2
)
  
 
(3.3
)
  
 
(6.3
)
   
 
 
 
 
 
 
 
 
Total revenue
  
 
105.3
 
  
 
117.6
 
  
 
114.2
 
  
 
127.4
 
  
 
177.7
 
  
 
189.4
 
  
 
174.0
 
  
 
180.1
 
  
 
274.0
 
Credit quality expense / (revenue)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Total operating expense
  
 
106.8
 
  
 
107.8
 
  
 
106.0
 
  
 
119.7
 
  
 
159.5
 
  
 
169.8
 
  
 
164.9
 
  
 
174.0
 
  
 
251.5
 
   
 
 
 
 
 
 
 
 
Income from continuing operations before
taxes (benefits)
  
 
(1.5
)
  
 
9.8
 
  
 
8.2
 
  
 
7.7
 
  
 
18.2
 
  
 
19.6
 
  
 
9.1
 
  
 
6.1
 
  
 
22.5
 
Income taxes (benefits)
  
 
(0.7
)
  
 
3.4
 
  
 
2.8
 
  
 
2.6
 
  
 
6.4
 
  
 
6.7
 
  
 
3.1
 
  
 
1.6
 
  
 
6.8
 
   
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
  
 
(0.8
)
  
 
6.4
 
  
 
5.4
 
  
 
5.1
 
  
 
11.8
 
  
 
12.9
 
  
 
6.0
 
  
 
4.5
 
  
 
15.7
 
Income (loss) from discontinued
operations after-tax (b)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
 
 
 
 
 
 
 
Net income (loss)
  
$
(0.8
)
  
$
6.4
 
  
$
5.4
 
  
$
5.1
 
  
$
11.8
 
  
$
12.9
 
  
$
6.0
 
  
$
4.5
 
  
$
15.7
 
   
 
 
 
 
 
 
 
 
($ Billions)
                                                                        
Average loans
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Average assets (c)
  
 
0.7
 
  
 
0.7
 
  
 
0.7
 
  
 
0.8
 
  
 
0.9
 
  
 
0.9
 
  
 
0.9
 
  
 
1.2
 
  
 
1.7
 
Average deposits
  
 
0.1
 
  
 
0.1
 
  
 
0.2
 
  
 
0.1
 
  
 
0.1
 
  
 
0.1
 
  
 
0.1
 
  
 
0.1
 
  
 
0.1
 
Average common equity
  
 
0.1
 
  
 
0.1
 
  
 
0.1
 
  
 
0.1
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.3
 
Average Tier I preferred equity
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Assets under management (period end)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Assets under administration or custody (period end)
  
 
9
 
  
 
9
 
  
 
9
 
  
 
8
 
  
 
7
 
  
 
28
 
  
 
26
 
  
 
32
 
  
 
171
 
Contribution to EPS (e)
  
$
—  
 
  
$
0.01
 
  
$
0.01
 
  
$
0.01
 
  
$
0.02
 
  
$
0.03
 
  
$
0.01
 
  
$
0.01
 
  
$
0.04
 
Return on common equity (e)
  
 
-n/m
%
  
 
33
%
  
 
26
%
  
 
18
%
  
 
30
%
  
 
31
%
  
 
15
%
  
 
11
%
  
 
23
%
Pretax operating margin (e)
  
 
-n/m
%
  
 
8
%
  
 
7
%
  
 
6
%
  
 
10
%
  
 
10
%
  
 
5
%
  
 
3
%
  
 
8
%
Pretax operating margin (d)(e)
  
 
-n/m
%
  
 
8
%
  
 
7
%
  
 
6
%
  
 
10
%
  
 
10
%
  
 
5
%
  
 
3
%
  
 
8
%
 
(a)
 
Results exclude the impact of the amortization of goodwill from purchase acquisitions.
(b)
 
Net income (loss) from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.
(c)
 
Where average deposits are in excess of average loans, average assets include an allocation of investment securities to balance.
(d)
 
Excludes amortization of other intangibles.
(e)
 
Ratios excludes the impact of the venture capital fair market value adjustments, loss on disposition of loans & commitments and nonoperating charges for 2001.
In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a FASB staff announcement.
The Corporation had historically reported expense reimbursement as a reduction of expenses. Prior period amounts have been reclassified.

MELLON FINANCIAL CORPORATION
BUSINESS SECTORS — NEW GAAP  (a)
TREASURY SERVICES – 9 Quarter Trend
 
   
2000
    
2001
    
2002
  
($ millions)
  
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
  
Trust fees
  
$
1.3
 
  
$
0.8
 
  
$
0.9
 
  
$
1.0
 
  
$
1.5
 
  
$
1.7
 
  
$
1.7
 
  
$
1.8
 
  
$
1.9
 
Other fee revenue
  
 
71.0
 
  
 
75.6
 
  
 
77.2
 
  
 
78.3
 
  
 
83.1
 
  
 
88.5
 
  
 
86.8
 
  
 
90.9
 
  
 
87.4
 
Net interest revenue / (expense)
  
 
87.8
 
  
 
93.2
 
  
 
94.4
 
  
 
94.1
 
  
 
93.5
 
  
 
98.4
 
  
 
105.3
 
  
 
97.4
 
  
 
112.1
 
   
 
 
 
 
 
 
 
 
Total revenue
  
 
160.1
 
  
 
169.6
 
  
 
172.5
 
  
 
173.4
 
  
 
178.1
 
  
 
188.6
 
  
 
193.8
 
  
 
190.1
 
  
 
201.4
 
Credit quality expense / (revenue)
  
 
4.1
 
  
 
2.6
 
  
 
2.8
 
  
 
0.1
 
  
 
0.5
 
  
 
0.4
 
  
 
0.7
 
  
 
0.8
 
  
 
0.6
 
Total operating expense
  
 
94.4
 
  
 
100.1
 
  
 
103.8
 
  
 
105.5
 
  
 
105.7
 
  
 
111.7
 
  
 
108.5
 
  
 
115.1
 
  
 
113.5
 
   
 
 
 
 
 
 
 
 
Income from continuing operations before
taxes (benefits)
  
 
61.6
 
  
 
66.9
 
  
 
65.9
 
  
 
67.8
 
  
 
71.9
 
  
 
76.5
 
  
 
84.6
 
  
 
74.2
 
  
 
87.3
 
Income taxes (benefits)
  
 
21.6
 
  
 
23.3
 
  
 
23.2
 
  
 
24.0
 
  
 
25.3
 
  
 
27.0
 
  
 
30.1
 
  
 
24.5
 
  
 
31.3
 
   
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
  
 
40.0
 
  
 
43.6
 
  
 
42.7
 
  
 
43.8
 
  
 
46.6
 
  
 
49.5
 
  
 
54.5
 
  
 
49.7
 
  
 
56.0
 
Income (loss) from discontinued
operations after-tax (b)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
 
 
 
 
 
 
 
Net income (loss)
  
$
40.0
 
  
$
43.6
 
  
$
42.7
 
  
$
43.8
 
  
$
46.6
 
  
$
49.5
 
  
$
54.5
 
  
$
49.7
 
  
$
56.0
 
   
 
 
 
 
 
 
 
 
($ Billions)
                                                                        
Average loans
  
 
7.4
 
  
 
6.5
 
  
 
6.4
 
  
 
6.0
 
  
 
5.9
 
  
 
5.7
 
  
 
5.3
 
  
 
5.4
 
  
 
5.3
 
Average assets (c)
  
 
10.7
 
  
 
10.2
 
  
 
9.7
 
  
 
9.2
 
  
 
9.6
 
  
 
9.2
 
  
 
8.9
 
  
 
9.2
 
  
 
9.2
 
Average deposits
  
 
6.2
 
  
 
6.7
 
  
 
6.4
 
  
 
7.2
 
  
 
7.9
 
  
 
7.3
 
  
 
7.7
 
  
 
7.9
 
  
 
7.6
 
Average common equity
  
 
0.9
 
  
 
0.9
 
  
 
1.0
 
  
 
0.9
 
  
 
0.9
 
  
 
0.9
 
  
 
0.8
 
  
 
0.8
 
  
 
1.1
 
Average Tier I preferred equity
  
 
0.2
 
  
 
0.2
 
  
 
0.3
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.1
 
Assets under management (period end)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Assets under administration or custody (period end)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Contribution to EPS (e)
  
$
0.08
 
  
$
0.09
 
  
$
0.08
 
  
$
0.09
 
  
$
0.10
 
  
$
0.10
 
  
$
0.11
 
  
$
0.11
 
  
$
0.13
 
Return on common equity (e)
  
 
18
%
  
 
19
%
  
 
18
%
  
 
19
%
  
 
20
%
  
 
22
%
  
 
28
%
  
 
25
%
  
 
21
%
Pretax operating margin (e)
  
 
38
%
  
 
39
%
  
 
38
%
  
 
39
%
  
 
40
%
  
 
41
%
  
 
44
%
  
 
39
%
  
 
43
%
Pretax operating margin (d)(e)
  
 
39
%
  
 
40
%
  
 
40
%
  
 
41
%
  
 
41
%
  
 
41
%
  
 
45
%
  
 
39
%
  
 
44
%
 
(a)
 
Results exclude the impact of the amortization of goodwill from purchase acquisitions.
(b)
 
Net income (loss) from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.
(c)
 
Where average deposits are in excess of average loans, average assets include an allocation of investment securities to balance.
(d)
 
Excludes amortization of other intangibles.
(e)
 
Ratios excludes the impact of the venture capital fair market value adjustments, loss on disposition of loans & commitments and nonoperating charges for 2001.
In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a FASB staff announcement.
The Corporation had historically reported expense reimbursement as a reduction of expenses. Prior period amounts have been reclassified.

MELLON FINANCIAL CORPORATION
BUSINESS SECTORS – NEW GAAP (a)
CORE BUSINESS SECTORS – 9 Quarter Trend
 
   
2000
    
2001
    
2002
  
($ millions) 
  
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st
Qtr
  
Trust fees
  
$
540.2
 
  
$
544.6
 
  
$
556.2
 
  
$
586.8
 
  
$
620.8
 
  
$
640.6
 
  
$
631.9
 
  
$
673.2
 
  
$
775.2
 
Other fee revenue
  
 
134.1
 
  
 
126.0
 
  
 
122.8
 
  
 
126.7
 
  
 
134.3
 
  
 
141.5
 
  
 
135.3
 
  
 
146.1
 
  
 
124.3
 
Net interest revenue / (expense)
  
 
130.1
 
  
 
141.5
 
  
 
149.1
 
  
 
150.4
 
  
 
151.1
 
  
 
155.8
 
  
 
166.6
 
  
 
168.1
 
  
 
181.4
 
   
 
 
 
 
 
 
 
 
Total revenue
  
 
804.4
 
  
 
812.1
 
  
 
828.1
 
  
 
863.9
 
  
 
906.2
 
  
 
937.9
 
  
 
933.8
 
  
 
987.4
 
  
 
1,080.9
 
Credit quality expense / (revenue)
  
 
4.2
 
  
 
2.6
 
  
 
3.1
 
  
 
0.4
 
  
 
0.5
 
  
 
0.5
 
  
 
0.9
 
  
 
1.1
 
  
 
1.4
 
Total operating expense
  
 
518.9
 
  
 
522.7
 
  
 
531.1
 
  
 
568.7
 
  
 
599.1
 
  
 
611.1
 
  
 
625.0
 
  
 
693.3
 
  
 
764.9
 
   
 
 
 
 
 
 
 
 
Income from continuing operations before
taxes (benefits)
  
 
281.3
 
  
 
286.8
 
  
 
293.9
 
  
 
294.8
 
  
 
306.6
 
  
 
326.3
 
  
 
307.9
 
  
 
293.0
 
  
 
314.6
 
Income taxes (benefits)
  
 
103.3
 
  
 
104.9
 
  
 
107.9
 
  
 
108.2
 
  
 
111.1
 
  
 
119.7
 
  
 
113.6
 
  
 
100.0
 
  
 
114.5
 
   
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
  
 
178.0
 
  
 
181.9
 
  
 
186.0
 
  
 
186.6
 
  
 
195.5
 
  
 
206.6
 
  
 
194.3
 
  
 
193.0
 
  
 
200.1
 
Income (loss) from discontinued
operations after-tax (b)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
 
 
 
 
 
 
 
Net income (loss)
  
$
178.0
 
  
$
181.9
 
  
$
186.0
 
  
$
186.6
 
  
$
195.5
 
  
$
206.6
 
  
$
194.3
 
  
$
193.0
 
  
$
200.1
 
   
 
 
 
 
 
 
 
 
($ Billions)
                                                                        
Average loans
  
 
9.7
 
  
 
8.7
 
  
 
8.7
 
  
 
8.4
 
  
 
8.2
 
  
 
8.0
 
  
 
7.7
 
  
 
7.8
 
  
 
7.8
 
Average assets (c)
  
 
20.4
 
  
 
20.6
 
  
 
20.1
 
  
 
19.8
 
  
 
20.5
 
  
 
19.3
 
  
 
19.2
 
  
 
20.2
 
  
 
20.6
 
Average deposits
  
 
12.4
 
  
 
13.3
 
  
 
13.2
 
  
 
14.1
 
  
 
14.8
 
  
 
13.4
 
  
 
13.9
 
  
 
14.6
 
  
 
13.9
 
Average common equity
  
 
2.1
 
  
 
2.1
 
  
 
2.2
 
  
 
2.1
 
  
 
2.3
 
  
 
2.4
 
  
 
2.3
 
  
 
2.3
 
  
 
2.7
 
Average Tier I preferred equity
  
 
0.2
 
  
 
0.2
 
  
 
0.3
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.2
 
  
 
0.1
 
Assets under management (period end)
  
 
511
 
  
 
521
 
  
 
540
 
  
 
530
 
  
 
520
 
  
 
546
 
  
 
547
 
  
 
592
 
  
 
610
 
Assets under administration or custody (period end)
  
 
2,261
 
  
 
2,257
 
  
 
2,298
 
  
 
2,267
 
  
 
2,251
 
  
 
2,295
 
  
 
2,076
 
  
 
2,082
 
  
 
2,360
 
Contribution to EPS (e)
  
$
0.35
 
  
$
0.37
 
  
$
0.37
 
  
$
0.37
 
  
$
0.40
 
  
$
0.43
 
  
$
0.41
 
  
$
0.41
 
  
$
0.45
 
Return on common equity (e)
  
 
34
%
  
 
34
%
  
 
33
%
  
 
33
%
  
 
34
%
  
 
36
%
  
 
35
%
  
 
34
%
  
 
31
%
Pretax operating margin (e)
  
 
35
%
  
 
35
%
  
 
35
%
  
 
34
%
  
 
34
%
  
 
35
%
  
 
33
%
  
 
30
%
  
 
29
%
Pretax operating margin (d)(e)
  
 
35
%
  
 
35
%
  
 
35
%
  
 
34
%
  
 
34
%
  
 
35
%
  
 
33
%
  
 
30
%
  
 
29
%
 
(a)
 
Results exclude the impact of the amortization of goodwill from purchase acquisitions.
(b)
 
Net income (loss) from discontinued operations has not been allocated to any of the corporation’s reportable sectors.
(c)
 
Where average deposits are in excess of average loans, average assets include an allocation of investment securities to balance.
(d)
 
Excludes amortization of other intangibles.
(e)
 
Ratios excludes the impact of the venture capital fair market value adjustments, loss on disposition of loans & commitments and nonoperating charges for 2001.
In January 2002, the corporation began to record customer expense reimbursements as revenue in accordance with a FASB staff announcement.
The corporation had historically reported expense reimbursement as a reduction of expenses. Prior period amounts have been reclassified.

MELLON FINANCIAL CORPORATION
BUSINESS SECTORS – NEW GAAP (a)
OTHER ACTIVITIES – 9 Quarter Trend
 
   
2000
    
2001
    
2002
  
($ millions)
  
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
  
Trust fees
  
$
23.8
 
  
$
12.3
 
  
$
(1.0
)
  
$
(1.6
)
  
$
(2.6
)
  
$
(2.6
)
  
$
(3.3
)
  
$
(3.3
)
  
$
(0.1
)
Other fee revenue
  
 
49.9
 
  
 
42.3
 
  
 
43.7
 
  
 
35.1
 
  
 
35.9
 
  
 
(117.7
)
  
 
9.7
 
  
 
(247.5
)
  
 
53.4
 
Net interest revenue / (expense)
  
 
3.6
 
  
 
(4.0
)
  
 
(7.3
)
  
 
(8.7
)
  
 
(9.6
)
  
 
(17.3
)
  
 
(18.3
)
  
 
(14.8
)
  
 
(22.9
)
   
 
 
 
 
 
 
 
 
Total revenue
  
 
77.3
 
  
 
50.6
 
  
 
35.4
 
  
 
24.8
 
  
 
23.7
 
  
 
(137.6
)
  
 
(11.9
)
  
 
(265.6
)
  
 
30.4
 
Credit quality expense / (revenue)
  
 
(1.4
)
  
 
6.3
 
  
 
(10.1
)
  
 
2.9
 
  
 
(15.8
)
  
 
0.2
 
  
 
3.5
 
  
 
4.2
 
  
 
1.8
 
Total operating expense
  
 
29.1
 
  
 
10.6
 
  
 
14.8
 
  
 
(0.5
)
  
 
6.9
 
  
 
(2.2
)
  
 
(17.2
)
  
 
63.1
 
  
 
8.0
 
   
 
 
 
 
 
 
 
 
Income from continuing operations before
taxes (benefits)
  
 
49.6
 
  
 
33.7
 
  
 
30.7
 
  
 
22.4
 
  
 
32.6
 
  
 
(135.6
)
  
 
1.8
 
  
 
(332.9
)
  
 
20.6
 
Income taxes (benefits)
  
 
18.1
 
  
 
12.7
 
  
 
10.8
 
  
 
8.5
 
  
 
12.6
 
  
 
(47.5
)
  
 
0.1
 
  
 
(111.9
)
  
 
9.5
 
   
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
  
 
31.5
 
  
 
21.0
 
  
 
19.9
 
  
 
13.9
 
  
 
20.0
 
  
 
(88.1
)
  
 
1.7
 
  
 
(221.0
)
  
 
11.1
 
Income (loss) from discontinued
operations after-tax (b)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
 
 
 
 
 
 
 
Net income (loss)
  
$
31.5
 
  
$
21.0
 
  
$
19.9
 
  
$
13.9
 
  
$
20.0
 
  
$
(88.1
)
  
$
1.7
 
  
$
(221.0
)
  
$
11.1
 
   
 
 
 
 
 
 
 
 
($ Billions)
                                                                        
Average loans
  
 
1.8
 
  
 
1.8
 
  
 
1.7
 
  
 
1.9
 
  
 
2.1
 
  
 
2.1
 
  
 
1.9
 
  
 
1.6
 
  
 
1.3
 
Average assets (c)
  
 
7.4
 
  
 
7.4
 
  
 
7.4
 
  
 
8.8
 
  
 
10.5
 
  
 
11.2
 
  
 
15.2
 
  
 
14.7
 
  
 
11.4
 
Average deposits
  
 
3.5
 
  
 
3.1
 
  
 
3.0
 
  
 
3.1
 
  
 
3.5
 
  
 
3.3
 
  
 
3.4
 
  
 
3.3
 
  
 
3.6
 
Average common equity
  
 
1.8
 
  
 
1.7
 
  
 
1.7
 
  
 
1.9
 
  
 
1.7
 
  
 
1.3
 
  
 
1.1
 
  
 
1.5
 
  
 
0.8
 
Average Tier I preferred equity
  
 
0.8
 
  
 
0.8
 
  
 
0.7
 
  
 
0.8
 
  
 
0.8
 
  
 
0.8
 
  
 
0.8
 
  
 
0.8
 
  
 
0.9
 
Assets under management (period end)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Assets under administration or custody (period end)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Contribution to EPS (e)
  
$
0.07
 
  
$
0.04
 
  
$
0.04
 
  
$
0.04
 
  
$
0.04
 
  
$
(0.18
)
  
$
—  
 
  
$
(0.46
)
  
$
0.02
 
Return on common equity (e)
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
Pretax operating margin (e)
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
Pretax operating margin (d)(e)
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
  
 
n/m
 
 
(a)
 
Results exclude the impact of the amortization of goodwill from purchase acquisitions.
(b)
 
Net income (loss) from discontinued operations has not been allocated to any of the corporation’s reportable sectors.
(c)
 
Where average deposits are in excess of average loans, average assets include an allocation of investment securities to balance.
(d)
 
Excludes amortization of other intangibles.
(e)
 
Ratios excludes the impact of the venture capital fair market value adjustments, loss on disposition of loans & commitments and nonoperating charges for 2001.
In January 2002, the corporation began to record customer expense reimbursements as revenue in accordance with a FASB staff announcement.
The corporation had historically reported expense reimbursement as a reduction of expenses. Prior period amounts have been reclassified.

MELLON FINANCIAL CORPORATION
BUSINESS SECTORS — NEW GAAP (a)
CONTINUING OPERATIONS – 9 Quarter Trend
 
   
2000
    
2001
    
2002
  
($ millions)
  
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st
Qtr
  
Trust fees
  
$
564.0
 
  
$
556.9
 
  
$
555.2
 
  
$
585.2
 
  
$
618.2
 
  
$
638.0
 
  
$
628.6
 
  
$
669.9
 
  
$
775.1
 
Other fee revenue
  
 
184.0
 
  
 
168.3
 
  
 
166.5
 
  
 
161.8
 
  
 
170.2
 
  
 
23.8
 
  
 
145.0
 
  
 
(101.4
)
  
 
177.7
 
Net interest revenue / (expense)
  
 
133.7
 
  
 
137.5
 
  
 
141.8
 
  
 
141.7
 
  
 
141.5
 
  
 
138.5
 
  
 
148.3
 
  
 
153.3
 
  
 
158.5
 
   
 
 
 
 
 
 
 
 
Total revenue
  
 
881.7
 
  
 
862.7
 
  
 
863.5
 
  
 
888.7
 
  
 
929.9
 
  
 
800.3
 
  
 
921.9
 
  
 
721.8
 
  
 
1,111.3
 
Credit quality expense / (revenue)
  
 
2.8
 
  
 
8.9
 
  
 
(7.0
)
  
 
3.3
 
  
 
(15.3
)
  
 
0.7
 
  
 
4.4
 
  
 
5.3
 
  
 
3.2
 
Total operating expense
  
 
548.0
 
  
 
533.3
 
  
 
545.9
 
  
 
568.2
 
  
 
606.0
 
  
 
608.9
 
  
 
607.8
 
  
 
756.4
 
  
 
772.9
 
   
 
 
 
 
 
 
 
 
Income from continuing operations before
taxes (benefits)
  
 
330.9
 
  
 
320.5
 
  
 
324.6
 
  
 
317.2
 
  
 
339.2
 
  
 
190.7
 
  
 
309.7
 
  
 
(39.9
)
  
 
335.2
 
Income taxes (benefits)
  
 
121.4
 
  
 
117.6
 
  
 
118.7
 
  
 
116.7
 
  
 
123.7
 
  
 
72.2
 
  
 
113.7
 
  
 
(11.9
)
  
 
124.0
 
   
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
  
 
209.5
 
  
 
202.9
 
  
 
205.9
 
  
 
200.5
 
  
 
215.5
 
  
 
118.5
 
  
 
196.0
 
  
 
(28.0
)
  
 
211.2
 
Income (loss) from discontinued
operations after-tax (b)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
 
 
 
 
 
 
 
Net income (loss)
  
$
209.5
 
  
$
202.9
 
  
$
205.9
 
  
$
200.5
 
  
$
215.5
 
  
$
118.5
 
  
$
196.0
 
  
$
(28.0
)
  
$
211.2
 
   
 
 
 
 
 
 
 
 
($ Billions)
                                                                        
Average loans
  
 
11.5
 
  
 
10.5
 
  
 
10.4
 
  
 
10.3
 
  
 
10.3
 
  
 
10.1
 
  
 
9.6
 
  
 
9.4
 
  
 
9.1
 
Average assets (c)
  
 
27.8
 
  
 
28.0
 
  
 
27.5
 
  
 
28.6
 
  
 
31.0
 
  
 
30.5
 
  
 
34.4
 
  
 
34.9
 
  
 
32.0
 
Average deposits
  
 
15.9
 
  
 
16.4
 
  
 
16.2
 
  
 
17.2
 
  
 
18.3
 
  
 
16.7
 
  
 
17.3
 
  
 
17.9
 
  
 
17.5
 
Average common equity
  
 
3.9
 
  
 
3.8
 
  
 
3.9
 
  
 
4.0
 
  
 
4.0
 
  
 
3.7
 
  
 
3.4
 
  
 
3.8
 
  
 
3.5
 
Average Tier I preferred equity
  
 
1.0
 
  
 
1.0
 
  
 
1.0
 
  
 
1.0
 
  
 
1.0
 
  
 
1.0
 
  
 
1.0
 
  
 
1.0
 
  
 
1.0
 
Assets under management (period end)
  
 
511
 
  
 
521
 
  
 
540
 
  
 
530
 
  
 
520
 
  
 
546
 
  
 
547
 
  
 
592
 
  
 
610
 
Assets under administration or custody (period end)
  
 
2,261
 
  
 
2,257
 
  
 
2,298
 
  
 
2,267
 
  
 
2,251
 
  
 
2,295
 
  
 
2,076
 
  
 
2,082
 
  
 
2,360
 
Contribution to EPS (e)
  
$
0.42
 
  
$
0.41
 
  
$
0.41
 
  
$
0.41
 
  
$
0.44
 
  
$
0.25
 
  
$
0.41
 
  
$
(0.05
)
  
$
0.47
 
Return on common equity (e)
  
 
22
%
  
 
22
%
  
 
21
%
  
 
20
%
  
 
22
%
  
 
23
%
  
 
12
%
  
 
20
%
  
 
25
%
Pretax operating margin (e)
  
 
38
%
  
 
37
%
  
 
38
%
  
 
36
%
  
 
36
%
  
 
24
%
  
 
34
%
  
 
30
%
  
 
30
%
Pretax operating margin (d)(e)
  
 
38
%
  
 
38
%
  
 
38
%
  
 
36
%
  
 
37
%
  
 
24
%
  
 
34
%
  
 
-3
%
  
 
30
%
 
(a)
 
Results exclude the impact of the amortization of goodwill from purchase acquisitions.
(b)
 
Net income (loss) from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.
(c)
 
Where average deposits are in excess of average loans, average assets include an allocation of investment securities to balance.
(d)
 
Excludes amortization of other intangibles.
(e)
 
Ratios excludes the impact of the venture capital fair market value adjustments, loss on disposition of loans & commitments and nonoperating charges for 2001.
In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a FASB staff announcement.
The Corporation had historically reported expense reimbursement as a reduction of expenses. Prior period amounts have been reclassified.

MELLON FINANCIAL CORPORATION
CONTINUING OPERATIONS
NONINTEREST REVENUE (non-FTE Basis)
 
   
2000
    
2001
    
2002
  
($ millions)
  
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
  
Trust and investment fee revenue
  
$
564.0
 
  
$
557.0
 
  
$
555.2
 
  
$
585.2
 
  
$
618.2
 
  
$
638.0
 
  
$
628.6
 
  
$
669.9
 
  
$
775.1
 
Cash management revenue
  
 
46.5
 
  
 
52.0
 
  
 
52.5
 
  
 
52.7
 
  
 
53.2
 
  
 
60.5
 
  
 
62.1
 
  
 
62.9
 
  
 
68.0
 
Foreign currency and securities trading revenue
  
 
51.2
 
  
 
41.2
 
  
 
42.6
 
  
 
42.8
 
  
 
54.5
 
  
 
47.6
 
  
 
38.6
 
  
 
53.0
 
  
 
39.0
 
Financing-related revenue
  
 
33.9
 
  
 
36.2
 
  
 
36.1
 
  
 
45.7
 
  
 
39.8
 
  
 
38.3
 
  
 
39.5
 
  
 
37.4
 
  
 
33.5
 
Equity investment revenue
  
 
36.8
 
  
 
18.6
 
  
 
21.5
 
  
 
5.9
 
  
 
7.6
 
  
 
(5.4
)
  
 
(15.3
)
  
 
0.7
 
  
 
21.2
 
Other
  
 
7.5
 
  
 
12.4
 
  
 
5.1
 
  
 
5.2
 
  
 
5.0
 
  
 
13.2
 
  
 
8.8
 
  
 
12.9
 
  
 
6.5
 
   
 
 
 
 
 
 
 
 
Sub-total
  
 
739.9
 
  
 
717.4
 
  
 
713.0
 
  
 
737.5
 
  
 
778.3
 
  
 
792.2
 
  
 
762.3
 
  
 
836.8
 
  
 
943.3
 
Venture capital fair value adjustments
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
(139.7
)
  
 
—  
 
  
 
(221.7
)
  
 
—  
 
Loss on disposition of large corporate loans
and commitments
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
(57.3
)
  
 
—  
 
   
 
 
 
 
 
 
 
 
Total fee and other revenue
  
$
739.9
 
  
$
717.4
 
  
$
713.0
 
  
$
737.5
 
  
$
778.3
 
  
$
652.5
 
  
$
762.3
 
  
$
557.8
 
  
$
943.3
 
Fee revenue as a percent of fee and net
interest revenue (FTE)*
  
 
84
%
  
 
83
%
  
 
83
%
  
 
83
%
  
 
84
%
  
 
84
%
  
 
83
%
  
 
84
%
  
 
85
%
Trust and investment fee revenue as a percent
of fee and net interest revenue (FTE)*
  
 
64
%
  
 
65
%
  
 
64
%
  
 
66
%
  
 
67
%
  
 
68
%
  
 
68
%
  
 
67
%
  
 
70
%
Assets under management at period end
(in billions)
  
$
511
 
  
$
521
 
  
$
540
 
  
$
530
 
  
$
520
 
  
$
546
 
  
$
547
 
  
$
592
 
  
$
610
 
Assets under administration or custody at period end
(in billions)
  
$
2,261
 
  
$
2,257
 
  
$
2,298
 
  
$
2,267
 
  
$
2,251
 
  
$
2,295
 
  
$
2,076
 
  
$
2,082
 
  
$
2,360
 
S&P 500 Index at period end
  
 
1,499
 
  
 
1,455
 
  
 
1,437
 
  
 
1,320
 
  
 
1,160
 
  
 
1,224
 
  
 
1,041
 
  
 
1,148
 
  
 
1,147
 
 
*
 
Excludes Venture Capital fair value adjustment and loss on disposition of large corporate loans & commitments.
 
In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a FASB staff announcement.
The Corporation had historically reported expense reimbursement as a reduction of expenses. Prior period amounts have been reclassified.

MELLON FINANCIAL CORPORATION
CONTINUING OPERATIONS
OPERATING EXPENSE (a)
 
   
2000
    
2001
    
2002
  
($ millions)
  
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
  
Staff expense
  
$
334.9
 
  
$
326.7
 
  
$
338.1
 
  
$
347.2
 
  
$
368.3
 
  
$
365.2
 
  
$
363.6
 
  
$
444.2
 
  
$
475.5
 
Professional, legal and other purchased services
  
 
59.4
 
  
 
62.0
 
  
 
68.7
 
  
 
63.7
 
  
 
75.2
 
  
 
78.3
 
  
 
79.7
 
  
 
113.7
 
  
 
83.1
 
Net occupancy expense
  
 
48.4
 
  
 
43.0
 
  
 
45.0
 
  
 
48.3
 
  
 
52.3
 
  
 
53.2
 
  
 
54.3
 
  
 
59.0
 
  
 
62.6
 
Equipment expense
  
 
32.7
 
  
 
31.9
 
  
 
32.5
 
  
 
37.4
 
  
 
38.3
 
  
 
34.9
 
  
 
40.0
 
  
 
43.7
 
  
 
56.5
 
Business development
  
 
33.3
 
  
 
33.3
 
  
 
30.4
 
  
 
32.4
 
  
 
29.5
 
  
 
28.7
 
  
 
27.0
 
  
 
31.9
 
  
 
32.3
 
Communications expense
  
 
17.3
 
  
 
16.9
 
  
 
15.3
 
  
 
14.7
 
  
 
22.0
 
  
 
25.8
 
  
 
24.5
 
  
 
23.3
 
  
 
28.1
 
Amortization of other intangible assets
  
 
1.7
 
  
 
1.7
 
  
 
1.7
 
  
 
1.7
 
  
 
1.6
 
  
 
1.6
 
  
 
1.4
 
  
 
2.2
 
  
 
3.3
 
Other expense
  
 
19.5
 
  
 
18.2
 
  
 
15.7
 
  
 
21.5
 
  
 
18.5
 
  
 
21.3
 
  
 
16.5
 
  
 
38.9
 
  
 
30.7
 
   
 
 
 
 
 
 
 
 
Total operating expense excluding goodwill amortization expense
  
 
547.2
 
  
 
533.7
 
  
 
547.4
 
  
 
566.9
 
  
 
605.7
 
  
 
609.0
 
  
 
607.0
 
  
 
756.9
 
  
 
772.1
 
Goodwill amortization expense
  
 
17.0
 
  
 
16.6
 
  
 
16.6
 
  
 
16.7
 
  
 
17.9
 
  
 
18.0
 
  
 
18.1
 
  
 
18.4
 
  
 
—  
 
   
 
 
 
 
 
 
 
 
Total operating expense
  
$
564.2
 
  
$
550.3
 
  
$
564.0
 
  
$
583.6
 
  
$
623.6
 
  
$
627.0
 
  
$
625.1
 
  
$
775.3
 
  
$
772.1
 
Efficiency ratio excluding amortization of
    goodwill in 2001 (b)
  
 
62
%
  
 
62
%
  
 
63
%
  
 
64
%
  
 
65
%
  
 
65
%
  
 
66
%
  
 
69
%
  
 
70
%
 
(a)
 
In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a FASB staff announcement.
The Corporation had historically reported expense reimbursement as a reduction of expenses. Prior period amounts have been reclassified.
 
(b)
 
Operating expense as a percentage of fee and net interest revenue, computed on a taxable equivalent basis, excluding the fourth quarter 2001 nonrecurring items and gains on the sales of securities.

MELLON FINANCIAL CORPORATION
PROVISION FOR CREDIT LOSSES, RESERVE FOR CREDIT LOSSES AND REVIEW OF NET
CREDIT LOSSES – 9 Quarter Trend
 
   
2000
    
2001
    
2002
  
($ Millions)
  
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
  
Provision for credit losses
  
$
3
 
  
$
9
 
  
$
(8
)
  
$
4
 
  
$
(15
)
  
$
1
 
  
$
5
 
  
$
5
 
  
$
4
 
                                                                         
Net Credit (Losses) Recoveries:
                                                                        
Commercial real estate
  
 
5
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
Commercial and financial
  
 
(5
)
  
 
(8
)
  
 
(3
)
  
 
(11
)
  
 
(1
)
  
 
(20
)
  
 
(21
)
  
 
(39
)
  
 
(2
)
Consumer Credit
  
 
—  
 
  
 
—  
 
  
 
(1
)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
(1
)
  
 
(1
)
   
 
 
 
 
 
 
 
 
Total net credit losses
  
$
—  
 
  
$
(8
)
  
$
(4
)
  
$
(11
)
  
$
(1
)
  
$
(20
)
  
$
(21
)
  
$
(40
)
  
$
(3
)
   
 
 
 
 
 
 
 
 
Annualized NCL’s to average loans
  
 
—  
%
  
 
.32
%
  
 
.14
%
  
 
.41
%
  
 
.06
%
  
 
.79
%
  
 
.89
%
  
 
1.67
%
  
 
.15
%
Reserve for credit losses
  
$
278
 
  
$
277
 
  
$
263
 
  
$
262
 
  
$
229
 
  
$
225
 
  
$
211
 
  
$
126
 
  
$
129
 
Reserve as a % of total loans
  
 
2.62
%
  
 
2.63
%
  
 
2.50
%
  
 
2.56
%
  
 
2.18
%
  
 
2.36
%
  
 
2.12
%
  
 
1.48
%
  
 
1.35
%
Reserve as a % of NPL’s
  
 
205
%
  
 
207
%
  
 
200
%
  
 
159
%
  
 
122
%
  
 
181
%
  
 
171
%
  
 
215
%
  
 
175
%

MELLON FINANCIAL CORPORATION
NONPERFORMING ASSETS – 9 Quarter Trend
 
   
2000
    
2001
    
2002
  
($ Millions)
  
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
    
2nd Qtr
    
3rd Qtr
    
4th Qtr
    
1st Qtr
  
Nonperforming loans:
                                                                        
Commercial and financial
  
$
120
 
  
$
118
 
  
$
121
 
  
$
159
 
  
$
183
 
  
$
121
 
  
$
121
 
  
$
56
 
  
$
69
 
Consumer Credit
  
 
14
 
  
 
11
 
  
 
7
 
  
 
5
 
  
 
2
 
  
 
2
 
  
 
1
 
  
 
2
 
  
 
2
 
Commercial real estate
  
 
1
 
  
 
4
 
  
 
3
 
  
 
1
 
  
 
1
 
  
 
1
 
  
 
1
 
  
 
1
 
  
 
3
 
   
 
 
 
 
 
 
 
 
Total nonperforming loans
  
 
135
 
  
 
133
 
  
 
131
 
  
 
165
 
  
 
186
 
  
 
124
 
  
 
123
 
  
 
59
 
  
 
74
 
Acquired property:
                                                                        
Real estate acquired
  
 
5
 
  
 
5
 
  
 
4
 
  
 
7
 
  
 
6
 
  
 
3
 
  
 
2
 
  
 
2
 
  
 
1
 
Reserve for real estate acquired
  
 
(1
)
  
 
(1
)
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
 
 
 
 
 
 
 
Net real estate acquired
  
 
4
 
  
 
4
 
  
 
4
 
  
 
7
 
  
 
6
 
  
 
3
 
  
 
2
 
  
 
2
 
  
 
1
 
Other assets acquired
  
 
2
 
  
 
2
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
1
 
  
 
1
 
  
 
1
 
  
 
—  
 
   
 
 
 
 
 
 
 
 
Total acquired property
  
 
6
 
  
 
6
 
  
 
4
 
  
 
7
 
  
 
6
 
  
 
4
 
  
 
3
 
  
 
3
 
  
 
1
 
   
 
 
 
 
 
 
 
 
Total nonperforming Assets
  
$
141
 
  
$
139
 
  
$
135
 
  
$
172
 
  
$
192
 
  
$
128
 
  
$
126
 
  
$
62
 
  
$
75
 
   
 
 
 
 
 
 
 
 
NPL’s as a % of total loans
  
 
1.28
%
  
 
1.27
%
  
 
1.25
%
  
 
1.61
%
  
 
1.78
%
  
 
1.30
%
  
 
1.24
%
  
 
0.69
%
  
 
0.77
%
NPA’s as a % of total loans and
                                                                        
    net acquired property
  
 
1.34
%
  
 
1.33
%
  
 
1.29
%
  
 
1.68
%
  
 
1.84
%
  
 
1.34
%
  
 
1.28
%
  
 
0.72
%
  
 
0.79
%
NPA’s as a % of Tier I capital
plus the reserve for credit losses
  
 
4.31
%
  
 
4.20
%
  
 
3.92
%
  
 
4.97
%
  
 
6.13
%
  
 
4.23
%
  
 
4.70
%
  
 
2.29
%
  
 
2.97
%
-----END PRIVACY-ENHANCED MESSAGE-----