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 7, 2004

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 Sectors Financial Information and Financial Trends through First Quarter 2004.

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 7, 2004
	By:	/s/ MICHAEL A. BRYSON
		Michael A. Bryson
		Chief Financial Officer

EXHIBIT INDEX

Number	Description	Method of Filing
99.1	Mellon Financial Corporation Business Sectors Financial Information and Financial Trends through First Quarter 2004.	Filed herewith

EX-99.1

Exhibit 99.1

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

(dollar amounts in millions, averages in billions; presented on an FTE basis)	Institutional Asset Management									Mutual Funds									Private Wealth Management									Asset Servicing
	2003			2002			2001 (a)			2003			2002			2001 (a)			2003			2002			2001 (a)			2003			2002			2001 (a)
Revenue:
Investment management	$	549		$	494		$	492		$	553		$	604		$	572		$	275		$	277		$	278		$	—		$	—		$	—
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			—			—			—
Institutional trust and custody		44			29			3			(4	)		4			21			9			11			15			422			434			352
Securities lending revenue		—			—			—			—			—			—			—			—			—			69			75			97
Transfer revenue		36			38			42			(56	)		(59	)		(55	)		10			17			19			2			(2	)		(10	)
Total trust and investment fee revenue		629			561			537			493			549			538			294			305			312			493			507			439
Other fee revenue		19			14			9			—			(6	)		3			14			15			15			121			132			168
Net interest revenue (expense)		(18	)		(29	)		(13	)		(4	)		7			1			223			209			165			82			95			124
Total revenue		630			546			533			489			550			542			531			529			492			696			734			731
Credit quality expense		—			—			—			—			—			—			1			—			1			—			—			—
Operating expense:
Amortization of goodwill		—			—			11			—			—			11			—			—			16			—			—			6
Other expense		509			474			386			320			338			328			293			278			254			541			542			456
Total operating expense		509			474			397			320			338			339			293			278			270			541			542			462
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		121			72			136			169			212			203			237			251			221			155			192			269
Income taxes (benefits)		43			27			53			60			85			82			84			89			82			55			67			96
Income (loss) from continuing operations before cumulative effect of accounting change		78			45			83			109			127			121			153			162			139			100			125			173
Cumulative effect of accounting change (b)		—			—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		78			45			83			109			127			121			153			162			139			100			125			173
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	78		$	45		$	83		$	109		$	127		$	121		$	153		$	162		$	139		$	100		$	125		$	173
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	2.9		$	2.7		$	2.3		$	—		$	—		$	—
Average assets (c)	$	1.4		$	1.2		$	0.9		$	0.7		$	0.7		$	0.7		$	5.5		$	5.0		$	4.8		$	5.8		$	4.7		$	4.9
Average deposits	$	—		$	—		$	—		$	—		$	—		$	—		$	4.6		$	4.4		$	4.2		$	4.2		$	3.4		$	3.7
Average common equity	$	0.5		$	0.2		$	0.2		$	0.2		$	0.4		$	0.4		$	0.4		$	0.2		$	0.2		$	0.6		$	0.5		$	0.5
Average Tier I preferred equity	$	0.3		$	—		$	—		$	0.1		$	—		$	—		$	0.2		$	—		$	—		$	0.1		$	—		$	—
Market value of assets under management at period end (in billions)(d)	$	466		$	373		$	390		$	143		$	164		$	152		$	48		$	44		$	50		$	—		$	—		$	—
Market value of assets under administration or custody at period end (in billions)	$	20		$	13		$	6		$	—		$	—		$	—		$	23		$	18		$	21		$	2,688		$	2,129		$	2,029
Return on common equity (e)		17	%		20	%		37	%		47	%		31	%		34	%		36	%		77	%		61	%		18	%		26	%		36	%
Pretax operating margin (e)		19	%		13	%		26	%		35	%		38	%		38	%		45	%		48	%		45	%		22	%		26	%		37	%

(a) Results for 2001 include the impact of the amortization of goodwill from purchased acquisitions.

(b) The cumulative effect of accounting change and income from discontinued operations have 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 equal to such excess.

(d) Reflects the change of investment advisor and subsequent transfer of Securities Lending assets from the Asset Servicing sector to the Institutional Asset Management sector. Prior period data has been restated.

(e) On a continuing operations basis.

n/m - not meaningful

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 1

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

(dollar amounts in millions, averages in billions; presented on an FTE basis)	Human Resources & Investor Solutions									Treasury Services									Total Core Sectors									Other Activity									Consolidated Results
	2003			2002			2001 (a)			2003			2002			2001 (a)			2003			2002			2001 (a)			2003			2002			2001 (a)			2003			2002			2001 (a)
Revenue:
Investment management	$	36		$	39		$	39		$	—		$	—		$	—		$	1,413		$	1,414		$	1,381		$	—		$	—		$	(6	)	$	1,413		$	1,414		$	1,375
Human resources & investor solutions		944			1,020			696			—			—			—			944			1,020			696			—			—			(5	)		944			1,020			691
Institutional trust and custody		—			—			—			1			1			1			472			479			392			(1	)		—			—			471			479			392
Securities lending revenue		—			—			—			—			—			—			69			75			97			—			—			—			69			75			97
Transfer revenue		—			(1	)		(2	)		8			7			6			—			—			—			—			—			—			—			—			—
Trust and investment fee revenue		980			1,058			733			9			8			7			2,898			2,988			2,566			(1	)		—			(11	)		2,897			2,988			2,555
Other fee revenue (b)		(2	)		2			(6	)		367			345			325			519			502			514			259			207			(288	)		778			709			226
Net interest revenue (expense) (c)		3			(25	)		(12	)		399			440			376			685			697			641			(99	)		(75	)		(59	)		586			622			582
Total revenue		981			1,035			715			775			793			708			4,102			4,187			3,721			159			132			(358	)		4,261			4,319			3,363
Credit quality expense		—			—			—			6			6			2			7			6			3			—			166			(7	)		7			172			(4	)
Operating expense:
Amortization of goodwill		—			—			11			—			—			13			—			—			68			—			—			5			—			—			73
Other expense		1,019			983			664			430			429			402			3,112			3,044			2,490			95			62			82			3,207			3,106			2,572
Total operating expense		1,019			983			675			430			429			415			3,112			3,044			2,558			95			62			87			3,207			3,106			2,645
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		(38	)		52			40			339			358			291			983			1,137			1,160			64			(96	)		(438	)		1,047			1,041			722
Income taxes (benefits) (d)		(16	)		17			16			120			127			105			346			412			434			24			(34	)		(147	)		370			378			287
Income (loss) from continuing operations before cumulative effect of accounting change		(22	)		35			24			219			231			186			637			725			726			40			(62	)		(291	)		677			663			435
Cumulative effect of accounting change (e)		—			—			—			—			—			—			—			—			—			(7	)		—			—			(7	)		—			—
Income from continuing operations		(22	)		35			24			219			231			186			637			725			726			33			(62	)		(291	)		670			663			435
Income from discontinued operations after-tax (e)		—			—			—			—			—			—			—			—			—			—			—			—			31			19			883
Net income (loss)	$	(22	)	$	35		$	24		$	219		$	231		$	186		$	637		$	725		$	726		$	33		$	(62	)	$	(291	)	$	701		$	682		$	1,318
Average loans	$	—		$	—		$	—		$	3.5		$	5.3		$	5.6		$	6.4		$	8.0		$	7.9		$	1.3		$	1.4		$	1.9		$	7.7		$	9.4		$	9.8
Average assets (f)(g)	$	1.8		$	1.4		$	0.9		$	10.9		$	11.2		$	9.9		$	26.1		$	24.2		$	22.1		$	7.4		$	8.6		$	10.6		$	33.9		$	33.7		$	45.5
Average deposits	$	0.4		$	0.1		$	0.1		$	9.3		$	9.8		$	8.6		$	18.5		$	17.7		$	16.6		$	1.0		$	1.3		$	1.0		$	19.5		$	19.0		$	17.6
Average common equity	$	0.4		$	0.3		$	0.2		$	1.1		$	1.0		$	0.8		$	3.2		$	2.6		$	2.3		$	0.3		$	0.8		$	1.4		$	3.5		$	3.4		$	3.7
Average Tier I preferred equity	$	0.2		$	—		$	—		$	0.1		$	0.2		$	0.2		$	1.0		$	0.2		$	0.2		$	—		$	0.8		$	0.8		$	1.0		$	1.0		$	1.0
Market value of assets under management at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	657		$	581		$	592		$	—		$	—		$	—		$	657		$	581		$	592
Market value of assets under administration or custody at period end (in billions)	$	114		$	116		$	26		$	—		$	—		$	—		$	2,845		$	2,276		$	2,082		$	—		$	—		$	—		$	2,845		$	2,276		$	2,082
Return on common equity (h)		-5	%		13	%		15	%		20	%		23	%		22	%		20	%		28	%		32	%		n/m			n/m			n/m			19	%		20	%		12	%
Pretax operating margin (h)		-4	%		5	%		6	%		44	%		45	%		41	%		24	%		27	%		31	%		n/m			n/m			n/m			25	%		24	%		21	%

(a) Results for 2001 include the impact of the amortization of goodwill from purchased acquisitions.

(b) Consolidated results include FTE impact of $42 million, $43 million and $40 million for 2003, 2002 and 2001, respectively.

(c) Consolidated results include FTE impact of $17 million, $12 million and $8 million for 2003, 2002 and 2001, respectively.

(d) Consolidated results include FTE impact of $59 million, $55 million and $48 million for 2003, 2002 and 2001, respectively.

(e) The cumulative effect of accounting change and income from discontinued operations have not been allocated to any of the Corporation’s reportable sectors.

(f) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

(g) Consolidated average assets includes average assets of discontinued operations (including assets of the fixed income trading business) of $0.4 billion, $0.9 billion and $12.8 billion for 2003, 2002 and 2001, respectively.

(h) On a continuing operations basis.

n/m - not meaningful

Note:   In December 2003, the Corporation sold the fixed income trading business of Mellon Investor Services, which had been a part of the Human Resources & Investor Solutions (HR&IS) sector. The results of this business have been removed from the HR&IS sector and accounted for as discontinued operations. And, as a consequence of the repositioning of the HR&IS sector, the results of its online financial planning and advice services were moved from the HR&IS sector to Other Activity; and based on the actions taken by the Bureau of Public Debt that will result in a significant reduction in merchant card activity, the Corporation’s merchant card business was moved from the Treasury Services sector to Other Activity. Prior periods have been reclassified.

Also, prior periods sector data reflects other immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 2

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

INSTITUTIONAL ASSET MANAGEMENT - 13 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2001 (a)												2002												2003												2004
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Revenue:
Investment management	$	112		$	111		$	118		$	151		$	132		$	118		$	112		$	132		$	107		$	123		$	129		$	190		$	183
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			—			—			—			—
Institutional trust and custody		1			—			1			1			7			8			8			6			8			10			11			15			10
Securities lending revenue		—			—			—			—			—			—			—			—			—			—			—			—			—
Transfer revenue		11			11			10			10			11			10			10			7			7			10			9			10			12
Trust and investment fee revenue		124			122			129			162			150			136			130			145			122			143			149			215			205
Other fee revenue		(1	)		3			5			2			4			2			1			7			4			3			6			6			10
Net interest revenue (expense)		(1	)		(1	)		(6	)		(5	)		(7	)		(7	)		(8	)		(7	)		(4	)		(4	)		(6	)		(4	)		(4	)
Total revenue		122			124			128			159			147			131			123			145			122			142			149			217			211
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—			—			—
Operating expense:
Amortization of goodwill		3			3			2			3			—			—			—			—			—			—			—			—			—
Other expense		87			83			98			118			117			109			112			136			114			115			121			159			144
Total operating expense		90			86			100			121			117			109			112			136			114			115			121			159			144
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		32			38			28			38			30			22			11			9			8			27			28			58			67
Income taxes (benefits)		12			15			12			14			11			9			4			3			3			10			10			20			24
Income (loss) from continuing operations before cumulative effect of accounting change		20			23			16			24			19			13			7			6			5			17			18			38			43
Cumulative effect of accounting change (b)		—			—			—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		20			23			16			24			19			13			7			6			5			17			18			38			43
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	20		$	23		$	16		$	24		$	19		$	13		$	7		$	6		$	5		$	17		$	18		$	38		$	43
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets (c)	$	0.7		$	0.8		$	1.0		$	1.1		$	1.2		$	1.2		$	1.3		$	1.3		$	1.4		$	1.4		$	1.4		$	1.4		$	1.5
Average deposits	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average common equity	$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.5		$	0.5		$	0.5		$	0.5		$	0.6
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	0.3		$	0.3		$	0.3		$	0.3		$	0.3
Market value of assets under management at period end (in billions)(d)	$	350		$	361		$	370		$	390		$	395		$	377		$	357		$	373		$	372		$	409		$	433		$	466		$	491
Market value of assets under administration or custody at period end (in billions)	$	—		$	—		$	—		$	6		$	7		$	7		$	7		$	13		$	13		$	14		$	17		$	20		$	16
Return on common equity (e)(f)		40	%		44	%		29	%		40	%		32	%		24	%		13	%		11	%		4	%		15	%		15	%		30	%		30	%
Pretax operating margin (e)		27	%		30	%		22	%		24	%		20	%		17	%		9	%		6	%		6	%		19	%		19	%		27	%		31	%

(a) Results for 2001 include the impact of the amortization of goodwill from purchased acquisitions.

(b) The cumulative effect of accounting change and income from discontinued operations have 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 equal to such excess.

(d) Reflects the change of investment advisor and subsequent transfer of Securities Lending assets from the Asset Servicing sector to the Institutional Asset Management sector. Prior period data has been restated.

(e) On a continuing operations basis.

(f) Ratios are annualized.

n/m - not meaningful

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 3

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

MUTUAL FUNDS - 13 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2001 (a)												2002												2003												2004
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Revenue:
Investment management	$	133		$	140		$	146		$	153		$	155		$	156		$	150		$	143		$	138		$	137		$	141		$	137		$	138
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			—			—			—			—
Institutional trust and custody		7			(1	)		9			6			3			2			—			(1	)		(1	)		(1	)		(3	)		1			(1	)
Securities lending revenue		—			—			—			—			—			—			—			—			—			—			—			—			—
Transfer revenue		(12	)		(13	)		(15	)		(15	)		(16	)		(15	)		(15	)		(13	)		(13	)		(14	)		(15	)		(14	)		(15	)
Trust and investment fee revenue		128			126			140			144			142			143			135			129			124			122			123			124			122
Other fee revenue		2			2			—			(1	)		(2	)		—			(2	)		(2	)		—			—			(1	)		1			(1	)
Net interest revenue (expense)		(1	)		1			—			1			2			1			2			2			(2	)		(1	)		—			(1	)		(1	)
Total revenue		129			129			140			144			142			144			135			129			122			121			122			124			120
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—			—			—
Operating expense:
Amortization of goodwill		2			4			2			3			—			—			—			—			—			—			—			—			—
Other expense		79			73			84			92			84			86			83			85			77			79			80			84			77
Total operating expense		81			77			86			95			84			86			83			85			77			79			80			84			77
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		48			52			54			49			58			58			52			44			45			42			42			40			43
Income taxes (benefits)		20			21			22			19			24			23			22			16			16			15			15			14			15
Income (loss) from continuing operations before cumulative effect of accounting change		28			31			32			30			34			35			30			28			29			27			27			26			28
Cumulative effect of accounting change (b)		—			—			—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		28			31			32			30			34			35			30			28			29			27			27			26			28
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	28		$	31		$	32		$	30		$	34		$	35		$	30		$	28		$	29		$	27		$	27		$	26		$	28
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets (c)	$	0.7		$	0.6		$	0.6		$	0.7		$	0.7		$	0.7		$	0.7		$	0.7		$	0.7		$	0.7		$	0.6		$	0.6		$	0.5
Average deposits	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average common equity	$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1
Market value of assets under management at period end (in billions)	$	120		$	133		$	131		$	152		$	164		$	164		$	162		$	164		$	152		$	157		$	146		$	143		$	141
Market value of assets under administration or custody at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Return on common equity (d)(e)		34	%		36	%		34	%		33	%		36	%		34	%		29	%		26	%		51	%		47	%		47	%		44	%		51	%
Pretax operating margin (d)		37	%		41	%		38	%		35	%		41	%		40	%		39	%		34	%		37	%		35	%		34	%		32	%		36	%

(a) Results for 2001 include the impact of the amortization of goodwill from purchased acquisitions.

(b) The cumulative effect of accounting change and income from discontinued operations have 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 equal to such excess.

(d) On a continuing operations basis.

(e) Ratios are annualized.

n/m - not meaningful

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 4

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

PRIVATE WEALTH MANAGEMENT - 13 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2001 (a)												2002												2003												2004
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Revenue:
Investment management	$	70		$	72		$	73		$	63		$	73		$	70		$	69		$	65		$	65		$	65		$	69		$	76		$	74
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			—			—			—			—
Institutional trust and custody		6			4			2			3			3			4			2			2			2			2			2			3			2
Securities lending revenue		—			—			—			—			—			—			—			—			—			—			—			—			—
Transfer revenue		5			5			5			4			4			5			4			4			3			2			4			1			2
Trust and investment fee revenue		81			81			80			70			80			79			75			71			70			69			75			80			78
Other fee revenue		3			3			2			7			4			1			5			5			3			4			3			4			4
Net interest revenue (expense)		34			38			44			49			54			54			52			49			58			59			55			51			52
Total revenue		118			122			126			126			138			134			132			125			131			132			133			135			134
Credit quality expense		—			—			—			1			1			—			(1	)		—			—			—			—			1			—
Operating expense:
Amortization of goodwill		4			3			5			4			—			—			—			—			—			—			—			—			—
Other expense		60			63			62			69			70			66			68			74			68			73			76			76			77
Total operating expense		64			66			67			73			70			66			68			74			68			73			76			76			77
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		54			56			59			52			67			68			65			51			63			59			57			58			57
Income taxes (benefits)		21			21			22			18			24			25			23			17			22			21			20			21			20
Income (loss) from continuing operations before cumulative effect of accounting change		33			35			37			34			43			43			42			34			41			38			37			37			37
Cumulative effect of accounting change (b)		—			—			—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		33			35			37			34			43			43			42			34			41			38			37			37			37
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	33		$	35		$	37		$	34		$	43		$	43		$	42		$	34		$	41		$	38		$	37		$	37		$	37
Average loans	$	2.4		$	2.3		$	2.4		$	2.4		$	2.5		$	2.7		$	2.8		$	2.7		$	2.7		$	2.8		$	2.9		$	3.1		$	3.3
Average assets (c)	$	4.8		$	4.7		$	4.6		$	5.2		$	5.1		$	5.0		$	4.8		$	5.0		$	5.4		$	5.5		$	5.5		$	5.6		$	6.0
Average deposits	$	4.2		$	4.0		$	3.9		$	4.6		$	4.5		$	4.4		$	4.3		$	4.5		$	4.6		$	4.6		$	4.6		$	4.7		$	5.0
Average common equity	$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.4		$	0.4		$	0.4		$	0.5		$	0.5
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2
Market value of total client assets at period end (in billions)	$	84		$	79		$	71		$	74		$	74		$	70		$	64		$	66		$	64		$	69		$	71		$	75		$	76
Return on common equity (d)(e)		59	%		63	%		66	%		59	%		84	%		82	%		78	%		65	%		39	%		36	%		35	%		34	%		31	%
Pretax operating margin (d)		46	%		46	%		47	%		41	%		48	%		51	%		49	%		41	%		48	%		45	%		43	%		43	%		43	%

(a) Results for 2001 include the impact of the amortization of goodwill from purchased acquisitions.

(b) The cumulative effect of accounting change and income from discontinued operations have 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 equal to such excess.

(d) On a continuing operations basis.

(e) Ratios are annualized.

n/m - not meaningful

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 5

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

ASSET SERVICING - 13 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2001 (a)												2002												2003												2004
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Revenue:
Investment management	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			—			—			—			—
Institutional trust and custody		87			88			85			92			104			111			112			107			100			105			104			113			120
Securities lending revenue		23			31			19			24			19			24			16			16			15			22			16			16			18
Transfer revenue		(4	)		(3	)		(2	)		(1	)		(1	)		(1	)		(1	)		1			1			—			—			1			—
Trust and investment fee revenue		106			116			102			115			122			134			127			124			116			127			120			130			138
Other fee revenue		47			43			38			40			31			35			38			28			33			21			37			30			44
Net interest revenue (expense)		31			27			31			35			28			24			22			21			20			23			21			18			14
Total revenue		184			186			171			190			181			193			187			173			169			171			178			178			196
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—			—			—
Operating expense:
Amortization of goodwill		1			2			1			2			—			—			—			—			—			—			—			—			—
Other expense		110			111			109			126			129			135			138			140			128			128			138			147			145
Total operating expense		111			113			110			128			129			135			138			140			128			128			138			147			145
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		73			73			61			62			52			58			49			33			41			43			40			31			51
Income taxes (benefits)		27			26			22			21			18			21			18			10			15			15			14			11			18
Income (loss) from continuing operations before cumulative effect of accounting change		46			47			39			41			34			37			31			23			26			28			26			20			33
Cumulative effect of accounting change (b)		—			—			—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		46			47			39			41			34			37			31			23			26			28			26			20			33
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	46		$	47		$	39		$	41		$	34		$	37		$	31		$	23		$	26		$	28		$	26		$	20		$	33
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	0.1		$	—		$	—		$	0.1
Average assets (c)	$	5.3		$	4.6		$	4.9		$	4.9		$	4.5		$	4.6		$	4.9		$	4.8		$	5.4		$	5.7		$	6.1		$	6.2		$	7.1
Average deposits	$	3.9		$	3.3		$	3.8		$	3.7		$	3.2		$	3.4		$	3.4		$	3.4		$	3.5		$	4.2		$	4.5		$	4.6		$	5.5
Average common equity	$	0.4		$	0.4		$	0.4		$	0.5		$	0.4		$	0.5		$	0.4		$	0.5		$	0.5		$	0.6		$	0.6		$	0.6		$	0.6
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1
Market value of security lending assets at period end (in billions)(d)	$	44		$	43		$	39		$	41		$	45		$	43		$	44		$	41		$	45		$	51		$	53		$	55		$	64
Market value of assets under administration or custody at period end (in billions)	$	2,193		$	2,243		$	2,030		$	2,029		$	2,162		$	2,066		$	2,071		$	2,129		$	2,157		$	2,369		$	2,463		$	2,688		$	2,793
Return on common equity (e)(f)		40	%		39	%		32	%		33	%		29	%		32	%		26	%		18	%		21	%		19	%		18	%		13	%		22	%
Pretax operating margin (e)		40	%		39	%		36	%		32	%		29	%		30	%		26	%		19	%		25	%		25	%		22	%		18	%		26	%

(a) Results for 2001 include the impact of the amortization of goodwill from purchased acquisitions.

(b) The cumulative effect of accounting change and income from discontinued operations have 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 equal to such excess.

(d) Included as assets under management in the Institutional Asset Management sector.

(e) On a continuing operations basis.

(f) Ratios are annualized.

n/m - not meaningful

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 6

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

HUMAN RESOURCES & INVESTOR SOLUTIONS - 13 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2001 (a)												2002												2003												2004
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr (f)			4th Qtr			1st Qtr
Revenue:
Investment management	$	10		$	10		$	10		$	9		$	10		$	11		$	9		$	9		$	8		$	9		$	9		$	10		$	10
Human resources & investor solutions		171			184			169			172			269			264			232			255			240			245			229			230			233
Institutional trust and custody		—			—			—			—			—			—			—			—			—			—			—			—			—
Securities lending revenue		—			—			—			—			—			—			—			—			—			—			—			—			—
Transfer revenue		—			(1	)		—			(1	)		—			—			—			(1	)		—			(1	)		1			—			(1	)
Trust and investment fee revenue		181			193			179			180			279			275			241			263			248			253			239			240			242
Other fee revenue		(1	)		(1	)		(2	)		(2	)		(3	)		—			5			—			—			(2	)		—			—			—
Net interest revenue (expense)		(2	)		(3	)		(4	)		(3	)		(7	)		(6	)		(6	)		(6	)		(4	)		—			2			5			4
Total revenue		178			189			173			175			269			269			240			257			244			251			241			245			246
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—			—			—
Operating expense:
Amortization of goodwill		2			4			3			2			—			—			—			—			—			—			—			—			—
Other expense		160			169			164			171			247			252			240			244			243			254			285			237			230
Total operating expense		162			173			167			173			247			252			240			244			243			254			285			237			230
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		16			16			6			2			22			17			—			13			1			(3	)		(44	)		8			16
Income taxes (benefits)		6			6			3			1			8			5			—			4			—			(2	)		(17	)		3			6
Income (loss) from continuing operations before cumulative effect of accounting change		10			10			3			1			14			12			—			9			1			(1	)		(27	)		5			10
Cumulative effect of accounting change (b)		—			—			—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		10			10			3			1			14			12			—			9			1			(1	)		(27	)		5			10
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	10		$	10		$	3		$	1		$	14		$	12		$	—		$	9		$	1		$	(1	)	$	(27	)	$	5		$	10
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets (c)	$	0.9		$	0.9		$	0.9		$	0.9		$	1.3		$	1.3		$	1.5		$	1.5		$	1.7		$	1.7		$	1.7		$	1.8		$	1.4
Average deposits	$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.3		$	0.4		$	0.6		$	0.7
Average common equity	$	0.2		$	0.2		$	0.2		$	0.2		$	0.3		$	0.3		$	0.3		$	0.3		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2
Market value of assets under management at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under administration or custody at period end (in billions)	$	27		$	28		$	26		$	26		$	135		$	121		$	114		$	116		$	112		$	107		$	110		$	114		$	110
Return on common equity (d)(e)		23	%		25	%		8	%		2	%		21	%		16	%		1	%		13	%		1	%		0	%		-25	%		4	%		11	%
Pretax operating margin (d)		9	%		9	%		3	%		1	%		8	%		6	%		0	%		5	%		0	%		-1	%		-18	%		3	%		7	%

(a) Results for 2001 include the impact of the amortization of goodwill from purchased acquisitions.

(b) The cumulative effect of accounting change and income from discontinued operations have 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 equal to such excess.

(d) On a continuing operations basis.

(e) Ratios are annualized.

(f) The third quarter of 2003 includes charges of $47 million associated with severance ($29 million), software and fixed asset write-downs ($15 million) and other expenses ($3 million).

n/m - not meaningful

Note:  In December 2003, the Corporation sold the fixed income trading business of Mellon Investor Services, which had been a part of the Human Resources & Investor Solutions (HR&IS) sector. The results of this business have been removed from the HR&IS sector and accounted for as discontinued operations. And, as a consequence of the repositioning of the HR&IS sector the results of its online financial planning and advice services were moved from the HR&IS sector to Other Activity. Prior periods have been reclassified.

Page 7

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

TREASURY SERVICES - 13 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2001 (a)												2002												2003												2004
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Revenue:
Investment management	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			—			—			—			—
Institutional trust and custody		—			1			—			—			—			—			—			1			—			—			—			1			—
Securities lending revenue		—			—			—			—			—			—			—			—			—			—			—			—			—
Transfer revenue		1			1			2			2			2			2			2			1			2			3			1			2			2
Trust and investment fee revenue		1			2			2			2			2			2			2			2			2			3			1			3			2
Other fee revenue		75			83			82			85			82			84			90			89			87			87			100			93			92
Net interest revenue (expense)		91			93			102			90			108			114			114			104			109			108			97			85			81
Total revenue		167			178			186			177			192			200			206			195			198			198			198			181			175
Credit quality expense		1			—			1			—			1			—			2			3			4			—			1			1			—
Operating expense:
Amortization of goodwill		4			2			3			4			—			—			—			—			—			—			—			—			—
Other expense		96			103			100			103			104			105			106			114			106			104			111			109			104
Total operating expense		100			105			103			107			104			105			106			114			106			104			111			109			104
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		66			73			82			70			87			95			98			78			88			94			86			71			71
Income taxes (benefits)		24			27			30			24			31			34			35			27			31			33			31			25			25
Income (loss) from continuing operations before cumulative effect of accounting change		42			46			52			46			56			61			63			51			57			61			55			46			46
Cumulative effect of accounting change (b)		—			—			—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		42			46			52			46			56			61			63			51			57			61			55			46			46
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	42		$	46		$	52		$	46		$	56		$	61		$	63		$	51		$	57		$	61		$	55		$	46		$	46
Average loans	$	5.9		$	5.7		$	5.3		$	5.4		$	5.3		$	5.5		$	5.4		$	5.1		$	4.0		$	3.7		$	3.4		$	3.1		$	3.1
Average assets (c)	$	10.4		$	9.7		$	9.7		$	9.7		$	9.8		$	9.3		$	12.5		$	13.2		$	14.1		$	10.1		$	10.4		$	9.1		$	9.0
Average deposits	$	9.0		$	8.3		$	8.6		$	8.7		$	8.5		$	8.0		$	11.0		$	11.8		$	12.3		$	8.5		$	8.8		$	7.6		$	7.4
Average common equity	$	0.9		$	0.9		$	0.8		$	0.8		$	1.1		$	1.0		$	1.1		$	0.9		$	1.2		$	1.1		$	1.1		$	1.0		$	1.0
Average Tier I preferred equity	$	0.3		$	0.3		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1
Market value of assets under management at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under administration or custody at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Return on common equity (d)(e)		18	%		21	%		27	%		24	%		22	%		24	%		24	%		21	%		19	%		22	%		20	%		18	%		18	%
Pretax operating margin (d)		40	%		41	%		44	%		39	%		46	%		47	%		48	%		39	%		45	%		47	%		43	%		39	%		41	%

(a) Results for 2001 include the impact of the amortization of goodwill from purchased acquisitions.

(b) The cumulative effect of accounting change and income from discontinued operations have 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 equal to such excess.

(d) On a continuing operations basis.

(e) Ratios are annualized.

n/m - not meaningful

Note:  In the fourth quarter of 2003, based on the actions taken by the Bureau of Public Debt that will result in a significant reduction in merchant card activity, the Corporation’s merchant card business was moved from the Treasury Services sector to Other Activity. Prior periods have been reclassified.

Also, prior periods sector data reflects other immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 8

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

TOTAL CORE SECTORS - 13 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2001 (a)												2002												2003												2004
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr (f)			4th Qtr			1st Qtr
Revenue:
Investment management	$	325		$	333		$	347		$	376		$	370		$	355		$	340		$	349		$	318		$	334		$	348		$	413		$	405
Human resources & investor solutions		171			184			169			172			269			264			232			255			240			245			229			230			233
Institutional trust and custody		101			92			97			102			117			125			122			115			109			116			114			133			131
Securities lending revenue		23			31			19			24			19			24			16			16			15			22			16			16			18
Transfer revenue		1			—			—			(1	)		—			1			—			(1	)		—			—			—			—			—
Trust and investment fee revenue		621			640			632			673			775			769			710			734			682			717			707			792			787
Other fee revenue		125			133			125			131			116			122			137			127			127			113			145			134			149
Net interest revenue (expense)		152			155			167			167			178			180			176			163			177			185			169			154			146
Total revenue		898			928			924			971			1,069			1,071			1,023			1,024			986			1,015			1,021			1,080			1,082
Credit quality expense		1			—			1			1			2			—			1			3			4			—			1			2			—
Operating expense:
Amortization of goodwill		16			18			16			18			—			—			—			—			—			—			—			—			—
Other expense		592			602			617			679			751			753			747			793			736			753			811			812			777
Total operating expense		608			620			633			697			751			753			747			793			736			753			811			812			777
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		289			308			290			273			316			318			275			228			246			262			209			266			305
Income taxes (benefits)		110			116			111			97			116			117			102			77			87			92			73			94			108
Income (loss) from continuing operations before cumulative effect of accounting change		179			192			179			176			200			201			173			151			159			170			136			172			197
Cumulative effect of accounting change (b)		—			—			—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		179			192			179			176			200			201			173			151			159			170			136			172			197
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	179		$	192		$	179		$	176		$	200		$	201		$	173		$	151		$	159		$	170		$	136		$	172		$	197
Average loans	$	8.3		$	8.0		$	7.7		$	7.8		$	7.8		$	8.2		$	8.2		$	7.8		$	6.7		$	6.6		$	6.3		$	6.2		$	6.5
Average assets (c)	$	22.8		$	21.3		$	21.7		$	22.5		$	22.6		$	22.1		$	25.7		$	26.5		$	28.7		$	25.1		$	25.7		$	24.7		$	25.5
Average deposits	$	17.2		$	15.7		$	16.4		$	17.1		$	16.3		$	15.9		$	18.8		$	19.8		$	20.5		$	17.6		$	18.3		$	17.5		$	18.6
Average common equity	$	2.3		$	2.3		$	2.2		$	2.3		$	2.6		$	2.6		$	2.6		$	2.5		$	3.2		$	3.2		$	3.2		$	3.2		$	3.3
Average Tier I preferred equity	$	0.3		$	0.3		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0
Market value of assets under management at period end (in billions)	$	520		$	546		$	547		$	592		$	610		$	588		$	562		$	581		$	566		$	612		$	625		$	657		$	679
Market value of assets under administration or custody at period end (in billions)	$	2,251		$	2,295		$	2,077		$	2,082		$	2,324		$	2,213		$	2,209		$	2,276		$	2,300		$	2,510		$	2,611		$	2,845		$	2,944
Return on common equity (d)(e)		31	%		33	%		32	%		31	%		31	%		31	%		26	%		24	%		20	%		21	%		17	%		21	%		24	%
Pretax operating margin (d)		32	%		33	%		31	%		28	%		30	%		30	%		27	%		22	%		25	%		26	%		20	%		25	%		28	%

(a) Results for 2001 include the impact of the amortization of goodwill from purchased acquisitions.

(b) The cumulative effect of accounting change and income from discontinued operations have 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 equal to such excess.

(d) On a continuing operations basis.

(e) Ratios are annualized.

(f) The third quarter of 2003 included charges of $47 million associated with severance ($29 million), software and fixed asset write-downs ($15 million) and other expenses ($3 million).

n/m - not meaningful

Note:  In December 2003, the Corporation sold the fixed income trading business of Mellon Investor Services, which had been a part of the Human Resources & Investor Solutions (HR&IS) sector. The results of this business have been removed from the HR&IS sector and accounted for as discontinued operations. And, as a consequence of the repositioning of the HR&IS sector, the results of its online financial planning and advice services were moved from the HR&IS sector to Other Activity; and based on the actions taken by the Bureau of Public Debt that will result in a significant reduction in merchant card activity, the Corporation’s merchant card business was moved from the Treasury Services sector to Other Activity. Prior periods have been reclassified.

Also, prior periods sector data reflects other immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 9

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

OTHER ACTIVITY - 13 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2001 (a)												2002												2003												2004
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr (f)
Revenue:
Investment management	$	(1	)	$	(1	)	$	(2	)	$	(2	)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Human resources & investor solutions		(1	)		(1	)		(1	)		(2	)		—			—			—			—			—			—			—			—			—
Institutional trust and custody		—			—			—			—			—			—			—			—			—			—			—			(1	)		2
Securities lending revenue		—			—			—			—			—			—			—			—			—			—			—			—			—
Transfer revenue		(1	)		—			—			1			—			(1	)		—			1			—			—			—			—			—
Trust and investment fee revenue		(3	)		(2	)		(3	)		(3	)		—			(1	)		—			1			—			—			—			(1	)		2
Other fee revenue		44			(110	)		17			(239	)		57			40			37			73			49			52			78			80			145
Net interest revenue (expense)		(10	)		(17	)		(19	)		(13	)		(19	)		(25	)		(17	)		(14	)		(19	)		(18	)		(32	)		(30	)		(28	)
Total revenue		31			(129	)		(5	)		(255	)		38			14			20			60			30			34			46			49			119
Credit quality expense		(16	)		1			4			4			2			160			1			3			—			3			(1	)		(2	)		(7	)
Operating expense:
Amortization of goodwill		2			—			2			1			—			—			—			—			—			—			—			—			—
Other expense		13			7			(11	)		73			17			2			4			39			18			25			21			31			54
Total operating expense		15			7			(9	)		74			17			2			4			39			18			25			21			31			54
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		32			(137	)		—			(333	)		19			(148	)		15			18			12			6			26			20			72
Income taxes (benefits)		12			(47	)		—			(112	)		8			(53	)		5			6			5			3			9			7			25
Income (loss) from continuing operations before cumulative effect of accounting change		20			(90	)		—			(221	)		11			(95	)		10			12			7			3			17			13			47
Cumulative effect of accounting change (b)		—			—			—			—			—			—			—			—			(7	)		—			—			—			—
Income from continuing operations		20			(90	)		—			(221	)		11			(95	)		10			12			—			3			17			13			47
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	20		$	(90	)	$	—		$	(221	)	$	11		$	(95	)	$	10		$	12		$	—		$	3		$	17		$	13		$	47
Average loans	$	2.0		$	2.1		$	1.9		$	1.6		$	1.3		$	1.5		$	1.6		$	1.4		$	1.5		$	1.3		$	1.1		$	1.1		$	1.0
Average assets (c)	$	8.2		$	9.4		$	12.8		$	12.0		$	9.0		$	10.4		$	8.0		$	7.2		$	6.1		$	8.8		$	7.3		$	7.5		$	7.7
Average deposits	$	1.1		$	1.0		$	0.9		$	0.8		$	1.2		$	2.0		$	1.1		$	0.9		$	0.9		$	1.5		$	0.9		$	0.9		$	0.6
Average common equity	$	1.7		$	1.4		$	1.2		$	1.5		$	0.9		$	0.8		$	0.7		$	0.8		$	0.2		$	0.4		$	0.3		$	0.4		$	0.5
Average Tier I preferred equity	$	0.7		$	0.7		$	0.8		$	0.8		$	0.8		$	0.8		$	0.8		$	0.8		$	—		$	—		$	—		$	—		$	—
Market value of assets under management at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under administration or custody at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Return on common equity (d)(e)		n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m
Pretax operating margin (d)		n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m

(a) Results for 2001 include the impact of the amortization of goodwill from purchased acquisitions.

(b) The cumulative effect of accounting change and income from discontinued operations have 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 equal to such excess.

(d) On a continuing operations basis.

(e) Ratios are annualized.

(f) The first quarter of 2004 includes a pre-tax gain of $93 million from the sale of approximately 35% of the Corporation’s indirect investment in Shinsei Bank. Also included in the first quarter of 2004 is a charge of $19 million associated with a writedown of small non-strategic businesses that the Corporation intends to exit.

n/m - not meaningful

Note:  As a consequence of the repositioning of the Human Resources & Investor Solutions (HR&IS) sector, the results of its online financial planning and advice services were moved from the HR&IS sector to Other Actity; and based on the actions taken by the Bureau of Public Debt that will result in a significant reduction in merchant card activity, the Corporation’s merchant card business was moved from the Treasury Services sector to Other Activity. Prior periods have been reclassified.

Also, prior periods sector data reflects other immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 10

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

CONSOLIDATED RESULTS - 13 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2001 (a)												2002												2003												2004
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr (f)			4th Qtr			1st Qtr (g)
Revenue:
Investment management	$	324		$	332		$	345		$	374		$	370		$	355		$	340		$	349		$	318		$	334		$	348		$	413		$	405
Human resources & investor solutions		170			183			168			170			269			264			232			255			240			245			229			230			233
Institutional trust and custody		101			92			97			102			117			125			122			115			109			116			114			132			133
Securities lending revenue		23			31			19			24			19			24			16			16			15			22			16			16			18
Transfer revenue		—			—			—			—			—			—			—			—			—			—			—			—			—
Trust and investment fee revenue		618			638			629			670			775			768			710			735			682			717			707			791			789
Other fee revenue		169			23			142			(108	)		173			162			174			200			176			165			223			214			294
Net interest revenue (expense)		142			138			148			154			159			155			159			149			158			167			137			124			118
Total revenue		929			799			919			716			1,107			1,085			1,043			1,084			1,016			1,049			1,067			1,129			1,201
Credit quality expense		(15	)		1			5			5			4			160			2			6			4			3			—			—			(7	)
Operating expense:
Amortization of goodwill		18			18			18			19			—			—			—			—			—			—			—			—			—
Other expense		605			609			606			752			768			755			751			832			754			778			832			843			831
Total operating expense		623			627			624			771			768			755			751			832			754			778			832			843			831
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		321			171			290			(60	)		335			170			290			246			258			268			235			286			377
Income taxes (benefits)		122			69			111			(15	)		124			64			107			83			92			95			82			101			133
Income (loss) from continuing operations before cumulative effect of accounting change		199			102			179			(45	)		211			106			183			163			166			173			153			185			244
Cumulative effect of accounting change (b)		—			—			—			—			—			—			—			—			(7	)		—			—			—			—
Income from continuing operations		199			102			179			(45	)		211			106			183			163			159			173			153			185			244
Income from discontinued operations after-tax (b)		65			(47	)		13			852			5			3			8			3			2			2			28			(1	)		1
Net income (loss)	$	264		$	55		$	192		$	807		$	216		$	109		$	191		$	166		$	161		$	175		$	181		$	184		$	245
Average loans	$	10.3		$	10.1		$	9.6		$	9.4		$	9.1		$	9.7		$	9.8		$	9.2		$	8.2		$	7.9		$	7.4		$	7.3		$	7.5
Average assets (c)	$	48.2		$	45.8		$	45.5		$	42.5		$	33.0		$	33.4		$	34.2		$	34.2		$	35.3		$	34.3		$	33.4		$	32.5		$	33.2
Average deposits	$	18.3		$	16.7		$	17.3		$	17.9		$	17.5		$	17.9		$	19.9		$	20.7		$	21.4		$	19.1		$	19.2		$	18.4		$	19.2
Average common equity	$	4.0		$	3.7		$	3.4		$	3.8		$	3.5		$	3.4		$	3.3		$	3.3		$	3.4		$	3.6		$	3.5		$	3.6		$	3.8
Average Tier I preferred equity	$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0
Market value of assets under management at period end (in billions)	$	520		$	546		$	547		$	592		$	610		$	588		$	562		$	581		$	566		$	612		$	625		$	657		$	679
Market value of assets under administration or custody at period end (in billions)	$	2,251		$	2,295		$	2,077		$	2,082		$	2,324		$	2,213		$	2,209		$	2,276		$	2,300		$	2,510		$	2,611		$	2,845		$	2,944
Return on common equity (d)(e)		20	%		11	%		21	%		n/m			25	%		13	%		22	%		19	%		19	%		20	%		17	%		20	%		26	%
Pretax operating margin (d)		35	%		21	%		32	%		n/m			30	%		16	%		28	%		23	%		25	%		25	%		22	%		25	%		31	%

(a) Results for 2001 include the impact of the amortization of goodwill from purchased acquisitions.

(b) The cumulative effect of accounting change and income from discontinued operations have not been allocated to any of the Corporation’s reportable sectors.

(c) Consolidated average assets includes average assets of discontinued operations (including the assets of the fixed income trading business) of $0.5 billion, $0.4 billion, $0.4 billion and $0.3 billion for the first, second, third and fourth quarter, respectively for 2003; $1.4 billion, $0.9 billion, $0.5 billion and $0.5 billion for the first, second, third and fourth quarter, respectively, of 2002; and $17.2 billion, $15.1 billion, $11.0 billion and $8.0 billion for the first, second, third and fourth quarter, respectively, of 2001.

(d) On a continuing operations basis.

(e) Ratios are annualized.

(f) The third quarter of 2003 includes charges of $50 million associated with severance ($29 million), software and fixed asset write-downs ($18 million) and other expenses ($3 million).

(g) The first quarter of 2004 includes a pre-tax gain of $93 million from the sale of approximately 35% of the Corporation’s indirect investment in Shinsei Bank. Also included in the first quarter of 2004 is a charge of $19 million associated with a writedown of small non-strategic businesses that the Corporation intends to exit.

n/m - not meaningful

Note:   In December 2003, the Corporation sold the fixed income trading business of Mellon Investor Services, which had been a part of the Human Resources & Investor Solutions (HR&IS) sector.

The results of this business have been removed from the HR&IS sector and accounted for as discontinued operation. And, as a consequence of the repositioning of the HR&IS sector, the results of its online financial planning and advice services were moved from the HR&IS sector to Other Activity; and based on the actions taken by the Bureau of Public Debt that will result in a significant reduction in merchant card activity, the Corporation’s merchant card business was moved from the Treasury Services sector to Other Activity. Prior periods have been reclassified.

Page 11

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 13 Quarter Trend

NONINTEREST REVENUE

(dollar amounts in millions unless otherwise noted)	2001												2002												2003												2004
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Investment management	$	324		$	332		$	345		$	374		$	370		$	355		$	340		$	349		$	318		$	334		$	348		$	413		$	405
Human resources & investor solutions		170			183			168			170			269			264			232			255			240			245			229			230			233
Institutional trust & custody		101			92			97			102			117			125			122			115			109			116			114			132			133
Securities lending revenue		23			31			19			24			19			24			16			16			15			22			16			16			18
Trust and investment fee revenue (a)		618			638			629			670			775			768			710			735			682			717			707			791			789
Cash management revenue		49			57			59			60			64			67			71			71			72			70			84			83			78
Foreign exchange revenue		48			42			38			43			35			37			44			30			38			28			42			39			57
Other trading revenue		7			5			—			5			—			1			4			5			2			—			10			2			7
Financing-related revenue		40			38			39			(20	)		34			38			34			41			32			38			30			41			35
Equity investment revenue (b)		6			(146	)		(17	)		(223	)		21			(5	)		(23	)		(21	)		3			(18	)		3			6			98
Other revenue		9			17			12			18			10			12			6			31			9			14			27			19			7
Total fee and other revenue		777			651			760			553			939			918			846			892			838			849			903			981			1,071
Gains on the sales of securities		—			—			—			—			—			—			28			31			11			21			18			12			—
Total noninterest revenue (non-FTE)	$	777		$	651		$	760		$	553		$	939		$	918		$	874		$	923		$	849		$	870		$	921		$	993		$	1,071
FTE impact		10			10			11			9			9			12			10			12			9			12			9			12			12
Total noninterest revenue (FTE)	$	787		$	661		$	771		$	562		$	948		$	930		$	884		$	935		$	858		$	882		$	930		$	1,005		$	1,083
Fee revenue as a percentage of fee and net interest revenue (FTE) (b)		85	%		83	%		84	%		79	%		86	%		86	%		84	%		86	%		84	%		84	%		87	%		89	%		90	%
Market value of assets under management at period end (in billions)	$	520		$	546		$	547		$	592		$	610		$	588		$	562		$	581		$	566		$	612		$	625		$	657		$	679
Market value of assets under administration or custody at period end (in billions)	$	2,251		$	2,295		$	2,077		$	2,082		$	2,324		$	2,213		$	2,209		$	2,276		$	2,300		$	2,510		$	2,611		$	2,845		$	2,944
S&P 500 Index - period end		1160			1224			1041			1148			1147			990			815			880			848			975			996			1112			1126
S&P 500 Index - daily average		1273			1234			1154			1115			1132			1070			895			887			861			938			1000			1056			1133

(a) Amounts do not necessarily agree with those presented in Business Sectors which include net interest revenue / (expense) and revenue transferred between sectors under revenue transfer agreements. Additionally, sector amounts are reported on a fully taxable equivalent (FTE) basis.

(b) The first quarter of 2004 included a pre-tax gain of $93 million from the sale of approximately 35% of the Corporation’s indirect investment in Shinsei Bank. This gain is included in equity investment revenue. Excluding the gain, fee revenue as a percentage of fee and net interest (FTE) would have totaled 89%.

Note: For analytical purposes, the term “fee revenue”, as utilized throughout this report, is defined as total noninterest revenue less gains on the sales of securities.

Page 12

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 13 Quarter Trend

OPERATING EXPENSE

	2001								2002								2003								2004
(dollar amounts in millions)	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr (b)		4th Qtr		1st Qtr (c)
Staff Expense:
Compensation	$	265	$	264	$	269	$	310	$	324	$	322	$	321	$	349	$	326	$	323	$	349	$	327	$	316
Incentive (a)		84		84		76		110		111		95		82		98		64		76		87		117		105
Employee benefits		19		18		18		20		38		38		32		40		59		58		58		58		74
Total staff expense		368		366		363		440		473		455		435		487		449		457		494		502		495
Professional, legal and other purchased services		75		78		80		113		82		93		105		106		92		108		108		117		104
Net occupancy expense		52		53		55		59		63		60		63		60		64		65		68		68		68
Equipment expense		38		35		40		44		57		52		51		61		54		50		70		58		54
Business development		30		28		27		32		32		34		32		33		25		25		28		30		25
Communications expense		22		26		24		23		28		30		25		27		27		29		24		26		28
Amortization of goodwill		18		18		18		19		—		—		—		—		—		—		—		—		—
Amortization of intangible assets		2		1		2		2		3		4		3		5		5		4		5		5		5
Other expense		18		22		15		39		30		27		37		53		38		40		35		37		52
Total operating expense	$	623	$	627	$	624	$	771	$	768	$	755	$	751	$	832	$	754	$	778	$	832	$	843	$	831

(a) Effective January 1, 2003, the Corporation began recording an expense for the estimated fair value of stock options using the prospective method under transitional guidance provided in the Statements of Financial Accounting Standards (SFAS) No. 148, “Accounting for Stock-Based Compensation - Transition and Disclosure.” Stock option expense totaled less than $1 million in the first, second, third and fourth quarters of 2003 and approximately $4 million in the first quarter of 2004,

(b) The third quarter of 2003 includes charges related to the Human Resources & Investor Solutions sector of $50 million associated with severance ($29 million), software and fixed asset write-downs ($18 million) and other expenses ($3 million).

(c) The first quarter of 2004 includes a charge of $19 million associated with a writedown of small non-strategic businesses that the Corporation intends to exit.

Page13

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 13 Quarter Trend

PROVISION AND RESERVES FOR CREDIT EXPOSURE

	2001												2002												2003												2004
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Provision for credit losses	$	(15	)	$	1		$	5		$	5		$	4		$	160		$	2		$	6		$	4		$	3		$	—		$	—		$	(7	)
Net credit (losses) recoveries (a):
Commercial and financial		(1	)		(10	)		(2	)		(39	)		—			—			(84	)		6			8			—			2			(1	)		—
Commercial real estate		—			—			—			—			—			—			—			—			1			—			—			—			—
Consumer credit		—			—			—			(1	)		(1	)		(4	)		(1	)		—			—			—			—			1			—
Subtotal - net credit (losses) recoveries	$	(1	)	$	(10	)	$	(2	)	$	(40	)	$	(1	)	$	(4	)	$	(85	)	$	6		$	9		$	—		$	2		$	—		$	—
Credit losses on loans transferred to held for sale		—			(10	)		(19	)		—			(2	)		(3	)		(30	)		(4	)		(11	)		(2	)		—			(3	)		—
Total net credit (losses) recoveries	$	(1	)	$	(20	)	$	(21	)	$	(40	)	$	(3	)	$	(7	)	$	(115	)	$	2		$	(2	)	$	(2	)	$	2		$	(3	)	$	—
Annualized net credit losses to average loans		0.06	%		0.79	%		0.89	%		1.67	%		0.15	%		0.26	%		4.64	%		-0.08	%		0.09	%		0.11	%		-0.12	%		0.21	%		0.00	%
Reserve for loan losses (b):	$	219		$	217		$	187		$	96		$	106		$	242		$	127		$	127		$	114		$	113		$	110		$	103		$	94
Reserve for unfunded commitments (b)		37			19			33			42			32			51			52			52			64			66			71			75			77
Total reserve for credit exposure	$	256		$	236		$	220		$	138		$	138		$	293		$	179		$	179		$	178		$	179		$	181		$	178		$	171
Reserve for loan losses (b):
As a percentage of total loans (b)		2.09	%		2.28	%		1.89	%		1.12	%		1.11	%		2.47	%		1.36	%		1.51	%		1.46	%		1.46	%		1.52	%		1.37	%		1.27	%
As a percentage of nonperforming loans (b)		117	%		175	%		153	%		164	%		143	%		138	%		188	%		222	%		253	%		189	%		178	%		200	%		186	%

(a) Includes credit losses resulting from loan sales.

(b) At period end.

Page 14

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 13 Quarter Trend

NONPERFORMING ASSETS

	2001												2002												2003												2004
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Nonperforming loans:
Commercial and financial	$	183		$	121		$	121		$	42		$	55		$	151		$	55		$	54		$	42		$	57		$	51		$	49		$	48
Personal		2			2			1			2			2			4			5			3			3			3			2			2			2
Commercial real estate		1			1			1			1			3			11			7			—			—			—			—			—			1
Lease finance assets		—			—			—			14			14			9			—			—			—			—			9			—			—
Total nonperforming loans		186			124			123			59			74			175			67			57			45			60			62			51			51
Acquired property:
Real estate acquired		6			3			2			2			1			1			2			2			1			1			1			1			—
Reserve for real estate acquired		—			—			—			—			—			—			—			—			—			—			—			—			—
Net real estate acquired		6			3			2			2			1			1			2			2			1			1			1			1			—
Other assets acquired		—			1			1			1			—			—			—			—			—			—			—			—			—
Total acquired property		6			4			3			3			1			1			2			2			1			1			1			1			—
Total nonperforming assets	$	192		$	128		$	126		$	62		$	75		$	176		$	69		$	59		$	46		$	61		$	63		$	52		$	51
Nonperforming loans as a percentage of total loans		1.78	%		1.30	%		1.24	%		0.69	%		0.77	%		1.78	%		0.72	%		0.68	%		0.58	%		0.77	%		0.86	%		0.69	%		0.68	%
Nonperforming assets as a percentage of total loans and net acquired property		1.84	%		1.34	%		1.28	%		0.72	%		0.79	%		1.79	%		0.74	%		0.70	%		0.59	%		0.79	%		0.87	%		0.69	%		0.69	%
Nonperforming assets as a percentage of Tier I capital plus the reserve for loan losses		6.15	%		4.24	%		4.74	%		2.30	%		3.00	%		7.55	%		3.14	%		2.66	%		2.01	%		2.51	%		2.48	%		2.09	%		1.99	%

Page 15