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) – November 5, 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 (Address of principal executive offices)	15258 (Zip code)

Registrant’s telephone number, including area code – (412) 234-5000

(Former name or former address, if changed since last report)

N/A

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 9.01.     FINANCIAL STATEMENTS AND EXHIBITS

The following exhibit is filed herewith. The exhibit contains information which may be considered to constitute “non-GAAP financial measures” as defined in Item 10 of Regulation S-K. The Registrant’s management believes that the presentation of such information assists investors in comparing period to period changes in revenues, expenses and income and allows investors to more appropriately evaluate the impact of revenues from both taxable and tax-exempt sources.

Exhibit Number	Description
99.1	Mellon Financial Corporation Business Sectors Financial Information and Financial Trends through Third 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: November 5, 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 Third Quarter 2004.	Filed herewith

EX-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 reclassified.

The fees earned on these assets are shown as securities lending revenue in the Asset Servicing sector.

(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		—			—			—			—			—			—			—			—			—			—			—			—			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 in the third quarter of 2003, 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—11 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	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
Revenue:
Investment management	$	132		$	118		$	112		$	132		$	107		$	122		$	130		$	190		$	183		$	164		$	160
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			—			—
Institutional trust and custody		7			8			8			6			8			11			10			15			10			10			11
Securities lending revenue		—			—			—			—			—			—			—			—			—			—			—
Transfer revenue (a)		11			10			10			7			7			10			9			10			12			15			10
Trust and investment fee revenue		150			136			130			145			122			143			149			215			205			189			181
Other fee revenue		4			2			1			7			4			3			6			6			10			—			3
Net interest revenue (expense)		(7	)		(7	)		(8	)		(7	)		(4	)		(4	)		(6	)		(4	)		(4	)		(4	)		(4	)
Total revenue		147			131			123			145			122			142			149			217			211			185			180
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—
Operating expense		117			109			112			136			114			115			121			159			144			135			134
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		30			22			11			9			8			27			28			58			67			50			46
Income taxes (benefits)		11			9			4			3			3			10			10			20			24			18			14
Income (loss) from continuing operations before cumulative effect of accounting change		19			13			7			6			5			17			18			38			43			32			32
Cumulative effect of accounting change (b)		—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		19			13			7			6			5			17			18			38			43			32			32
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	19		$	13		$	7		$	6		$	5		$	17		$	18		$	38		$	43		$	32		$	32
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets (c)	$	1.2		$	1.2		$	1.3		$	1.3		$	1.4		$	1.4		$	1.4		$	1.4		$	1.5		$	1.5		$	1.5
Average deposits	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average common equity	$	0.2		$	0.2		$	0.2		$	0.2		$	0.5		$	0.5		$	0.5		$	0.5		$	0.6		$	0.6		$	0.6
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	0.3		$	0.3		$	0.3		$	0.3		$	0.3		$	0.3		$	0.3
Market value of assets under management at period end (in billions)(d)	$	395		$	377		$	357		$	373		$	372		$	409		$	433		$	466		$	491		$	491		$	489
Market value of assets under administration or custody at period end (in billions)	$	7		$	7		$	7		$	13		$	13		$	14		$	17		$	20		$	16		$	15		$	17
Return on common equity (e)(f)		32	%		24	%		13	%		11	%		4	%		15	%		15	%		30	%		30	%		22	%		21	%
Pretax operating margin (e)		20	%		17	%		9	%		6	%		6	%		19	%		19	%		27	%		31	%		27	%		26	%

(a) Consists largely of sub-advisory and distribution fees credited to the Institutional Asset Management sector by the Mutual Fund sector.

(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 reclassified. Includes securities lending assets of $77 billion, $82 billion and $86 billion in the first, second and third quarters, respectively of 2004, $53 billion, $59 billion, $63 billion, and $66 billion in the first, second, third and fourth quarters, respectively of 2003, and $45 billion, $43 billion, $48 billion, and $45 billion in the first, second, third and fourth quarters, respectively of 2002. The fees earned on these assets are shown as securities lending revenue in the Asset Servicing sector.

(e) On a continuing operations basis.

(f) Ratios are annualized.

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—11 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	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
Revenue:
Investment management	$	155		$	156		$	150		$	143		$	138		$	138		$	140		$	137		$	138		$	137		$	134
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			—			—
Institutional trust and custody		3			2			—			(1	)		(1	)		(1	)		(3	)		1			(1	)		1			—
Securities lending revenue		—			—			—			—			—			—			—			—			—			—			—
Transfer revenue (a)		(16	)		(15	)		(15	)		(13	)		(13	)		(15	)		(14	)		(14	)		(15	)		(14	)		(15	)
Trust and investment fee revenue		142			143			135			129			124			122			123			124			122			124			119
Other fee revenue		(2	)		—			(2	)		(2	)		—			—			(1	)		1			(1	)		(1	)		—
Net interest revenue (expense)		2			1			2			2			(2	)		(1	)		—			(1	)		(1	)		(2	)		(1	)
Total revenue		142			144			135			129			122			121			122			124			120			121			118
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—
Operating expense		84			86			83			85			77			79			80			84			77			77			77
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		58			58			52			44			45			42			42			40			43			44			41
Income taxes (benefits)		24			23			22			16			16			15			15			14			15			16			13
Income (loss) from continuing operations before cumulative effect of accounting change		34			35			30			28			29			27			27			26			28			28			28
Cumulative effect of accounting change (b)		—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		34			35			30			28			29			27			27			26			28			28			28
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	34		$	35		$	30		$	28		$	29		$	27		$	27		$	26		$	28		$	28		$	28
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets (c)	$	0.7		$	0.7		$	0.7		$	0.7		$	0.7		$	0.7		$	0.6		$	0.6		$	0.5		$	0.6		$	0.6
Average deposits	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average common equity	$	0.4		$	0.4		$	0.4		$	0.4		$	0.2		$	0.2		$	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		$	0.1		$	0.1
Market value of assets under management at period end (in billions)	$	164		$	164		$	162		$	164		$	152		$	157		$	146		$	143		$	141		$	142		$	134
Market value of assets under administration or custody at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Return on common equity (d)(e)		36	%		34	%		29	%		26	%		51	%		47	%		47	%		44	%		51	%		54	%		52	%
Pretax operating margin (d)		41	%		40	%		39	%		34	%		37	%		35	%		34	%		32	%		36	%		36	%		35	%

(a) Consists of sub-advisory and distribution fees credited to other sectors.

(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.

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—11 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	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
Revenue:
Investment management	$	73		$	70		$	69		$	65		$	65		$	65		$	69		$	76		$	74		$	75		$	74
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			—			—
Institutional trust and custody		3			4			2			2			2			2			2			3			2			2			3
Securities lending revenue		—			—			—			—			—			—			—			—			—			—			—
Transfer revenue		4			5			4			4			3			2			4			1			2			1			1
Trust and investment fee revenue		80			79			75			71			70			69			75			80			78			78			78
Other fee revenue		4			1			5			5			3			4			3			4			4			2			2
Net interest revenue (expense)		54			54			52			49			58			59			55			51			52			55			53
Total revenue		138			134			132			125			131			132			133			135			134			135			133
Credit quality expense		1			—			(1	)		—			—			—			—			1			—			1			—
Operating expense		70			66			68			74			68			73			76			76			77			78			78
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		67			68			65			51			63			59			57			58			57			56			55
Income taxes (benefits)		24			25			23			17			22			21			20			21			20			20			18
Income (loss) from continuing operations before cumulative effect of accounting change		43			43			42			34			41			38			37			37			37			36			37
Cumulative effect of accounting change (a)		—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		43			43			42			34			41			38			37			37			37			36			37
Income from discontinued operations after-tax (a)		—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	43		$	43		$	42		$	34		$	41		$	38		$	37		$	37		$	37		$	36		$	37
Average loans	$	2.5		$	2.7		$	2.8		$	2.7		$	2.7		$	2.8		$	2.9		$	3.1		$	3.3		$	3.4		$	3.4
Average assets (b)	$	5.1		$	5.0		$	4.8		$	5.0		$	5.4		$	5.5		$	5.5		$	5.6		$	6.0		$	6.2		$	6.3
Average deposits	$	4.5		$	4.4		$	4.3		$	4.5		$	4.6		$	4.6		$	4.6		$	4.7		$	5.0		$	5.3		$	5.4
Average common equity	$	0.2		$	0.2		$	0.2		$	0.2		$	0.4		$	0.4		$	0.4		$	0.5		$	0.5		$	0.5		$	0.5
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2
Market value of total client assets at period end (in billions)(c)	$	74		$	70		$	64		$	66		$	64		$	69		$	71		$	75		$	76		$	76		$	76
Return on common equity (d)(e)		84	%		82	%		78	%		65	%		39	%		36	%		35	%		34	%		31	%		30	%		31	%
Pretax operating margin (d)		48	%		51	%		49	%		41	%		48	%		45	%		43	%		43	%		43	%		41	%		41	%

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

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

(c) Includes assets under management, before amounts subadvised for other sectors, of $47 billion, $46 billion and $47 billion in the first, second and third quarters, respectively of 2004, $40 billion, $44 billion, $45 billion, and $47 billion in the first, second, third and fourth quarters, respectively of 2003, and $47 billion, $44 billion, $40 billion, and $41 billion in the first, second, third and fourth quarters, respectively of 2002.

(d) On a continuing operations basis.

(e) Ratios are annualized.

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—11 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	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
Revenue:
Investment management	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			—			—
Institutional trust and custody		104			111			112			107			100			105			104			113			120			118			113
Securities lending revenue		19			24			16			16			15			22			16			16			18			24			16
Transfer revenue		(1	)		(1	)		(1	)		1			1			—			—			1			—			(2	)		—
Trust and investment fee revenue		122			134			127			124			116			127			120			130			138			140			129
Other fee revenue		31			35			38			28			33			21			37			30			44			42			27
Net interest revenue (expense)		28			24			22			21			20			23			21			18			14			18			17
Total revenue		181			193			187			173			169			171			178			178			196			200			173
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—
Operating expense		129			135			138			140			128			128			138			147			145			143			142
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		52			58			49			33			41			43			40			31			51			57			31
Income taxes (benefits)		18			21			18			10			15			15			14			11			18			20			10
Income (loss) from continuing operations before cumulative effect of accounting change		34			37			31			23			26			28			26			20			33			37			21
Cumulative effect of accounting change (a)		—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		34			37			31			23			26			28			26			20			33			37			21
Income from discontinued operations after-tax (a)		—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	34		$	37		$	31		$	23		$	26		$	28		$	26		$	20		$	33		$	37		$	21
Average loans	$	—		$	—		$	—		$	—		$	—		$	0.1		$	—		$	—		$	0.1		$	0.1		$	—
Average assets (b)	$	4.5		$	4.6		$	4.9		$	4.8		$	5.4		$	5.7		$	6.1		$	6.2		$	7.1		$	6.8		$	7.0
Average deposits	$	3.2		$	3.4		$	3.4		$	3.4		$	3.5		$	4.2		$	4.5		$	4.6		$	5.5		$	5.4		$	5.8
Average common equity	$	0.4		$	0.5		$	0.4		$	0.5		$	0.5		$	0.6		$	0.6		$	0.6		$	0.6		$	0.6		$	0.6
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1
Market value of securities lending assets at period end (in billions)(c)	$	45		$	43		$	44		$	41		$	45		$	51		$	53		$	55		$	64		$	68		$	73
Market value of assets under administration or custody at period end (in billions)	$	2,162		$	2,066		$	2,071		$	2,129		$	2,157		$	2,369		$	2,463		$	2,688		$	2,793		$	2,826		$	2,946
Return on common equity (d)(e)		29	%		32	%		26	%		18	%		21	%		19	%		18	%		13	%		22	%		25	%		14	%
Pretax operating margin (d)		29	%		30	%		26	%		19	%		25	%		25	%		22	%		18	%		26	%		29	%		18	%

(a) Securities lending assets are included as assets under management in the Institutional Asset Management sector. Fees on those assets are recorded above as securities lending revenue.

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

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

(d) On a continuing operations basis.

(e) Ratios are annualized.

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—11 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2002												2003												2004
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr (f)			4th qtr			1st Qtr			2nd Qtr			3rd Qtr
Revenue:
Investment management (a)	$	10		$	11		$	9		$	9		$	8		$	9		$	9		$	10		$	10		$	9		$	8
Human resources & investor solutions		269			264			232			255			240			245			229			230			233			232			220
Institutional trust and custody		—			—			—			—			—			—			—			—			—			—			—
Securities lending revenue		—			—			—			—			—			—			—			—			—			—			—
Transfer revenue		—			—			—			(1	)		—			(1	)		1			—			(1	)		(1	)		1
Trust and investment fee revenue		279			275			241			263			248			253			239			240			242			240			229
Other fee revenue		(3	)		—			5			—			—			(2	)		—			—			—			1			2
Net interest revenue (expense)		(7	)		(6	)		(6	)		(6	)		(4	)		—			2			5			4			4			5
Total revenue		269			269			240			257			244			251			241			245			246			245			236
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—
Operating expense		247			252			240			244			243			254			285			237			230			230			220
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		22			17			—			13			1			(3	)		(44	)		8			16			15			16
Income taxes (benefits)		8			5			—			4			—			(2	)		(17	)		3			6			5			5
Income (loss) from continuing operations before cumulative effect of accounting change		14			12			—			9			1			(1	)		(27	)		5			10			10			11
Cumulative effect of accounting change (b)		—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		14			12			—			9			1			(1	)		(27	)		5			10			10			11
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	14		$	12		$	—		$	9		$	1		$	(1	)	$	(27	)	$	5		$	10		$	10		$	11
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets (c)	$	1.3		$	1.3		$	1.5		$	1.5		$	1.7		$	1.7		$	1.7		$	1.8		$	1.4		$	1.4		$	1.5
Average deposits	$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.3		$	0.4		$	0.6		$	0.7		$	0.8		$	0.9
Average common equity	$	0.3		$	0.3		$	0.3		$	0.3		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.3		$	0.4
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	0.2		$	0.2		$	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)	$	135		$	121		$	114		$	116		$	112		$	107		$	110		$	114		$	110		$	103		$	101
Return on common equity (d)(e)		21	%		16	%		1	%		13	%		1	%		0	%		-25	%		4	%		11	%		10	%		12	%
Pretax operating margin (d)		8	%		6	%		0	%		5	%		0	%		-1	%		-18	%		3	%		7	%		6	%		7	%

(a) Earned from mutual fund investments in employee benefit plans administered in this sector.

(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 a pre-tax charge of $47 million associated with severance ($29 million), software and fixed asset write-downs ($15 million) and other expenses ($3 million).

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 in the third quarter of 2003, 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—11 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	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
Revenue:
Investment management	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			—			—
Institutional trust and custody		—			—			—			1			—			—			—			1			—			1			—
Securities lending revenue		—			—			—			—			—			—			—			—			—			—			—
Transfer revenue		2			2			2			1			2			3			1			2			2			1			2
Trust and investment fee revenue		2			2			2			2			2			3			1			3			2			2			2
Other fee revenue		82			84			90			89			87			87			100			93			92			91			91
Net interest revenue (expense)		108			114			114			104			109			108			97			85			81			80			70
Total revenue		192			200			206			195			198			198			198			181			175			173			163
Credit quality expense		1			—			2			3			4			—			1			1			—			(1	)		1
Operating expense		104			105			106			114			106			104			111			109			104			103			105
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		87			95			98			78			88			94			86			71			71			71			57
Income taxes (benefits)		31			34			35			27			31			33			31			25			25			26			18
Income (loss) from continuing operations before cumulative effect of accounting change		56			61			63			51			57			61			55			46			46			45			39
Cumulative effect of accounting change (a)		—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		56			61			63			51			57			61			55			46			46			45			39
Income from discontinued operations after-tax (a)		—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	56		$	61		$	63		$	51		$	57		$	61		$	55		$	46		$	46		$	45		$	39
Average loans	$	5.3		$	5.5		$	5.4		$	5.1		$	4.0		$	3.7		$	3.4		$	3.1		$	3.1		$	3.1		$	2.7
Average assets (b)	$	9.8		$	9.3		$	12.5		$	13.2		$	14.1		$	10.1		$	10.4		$	9.1		$	9.0		$	9.3		$	9.3
Average deposits	$	8.5		$	8.0		$	11.0		$	11.8		$	12.3		$	8.5		$	8.8		$	7.6		$	7.4		$	7.7		$	7.8
Average common equity	$	1.1		$	1.0		$	1.1		$	0.9		$	1.2		$	1.1		$	1.1		$	1.0		$	1.0		$	1.0		$	0.9
Average Tier I preferred equity	$	0.2		$	0.2		$	0.2		$	0.2		$	0.1		$	0.1		$	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 (c)(d)		22	%		24	%		24	%		21	%		19	%		22	%		20	%		18	%		18	%		18	%		16	%
Pretax operating margin (c)		46	%		47	%		48	%		39	%		45	%		47	%		43	%		39	%		41	%		41	%		35	%

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

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

(c) On a continuing operations basis.

(d) Ratios are annualized.

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—11 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2002												2003												2004
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr (e)			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr
Revenue:
Investment management	$	370		$	355		$	340		$	349		$	318		$	334		$	348		$	413		$	405		$	385		$	376
Human resources & investor solutions		269			264			232			255			240			245			229			230			233			232			220
Institutional trust and custody		117			125			122			115			109			117			113			133			131			132			127
Securities lending revenue		19			24			16			16			15			22			16			16			18			24			16
Transfer revenue		—			1			—			(1	)		—			(1	)		1			—			—			—			(1	)
Trust and investment fee revenue		775			769			710			734			682			717			707			792			787			773			738
Other fee revenue		116			122			137			127			127			113			145			134			149			135			125
Net interest revenue (expense)		178			180			176			163			177			185			169			154			146			151			140
Total revenue		1,069			1,071			1,023			1,024			986			1,015			1,021			1,080			1,082			1,059			1,003
Credit quality expense		2			—			1			3			4			—			1			2			—			—			1
Operating expense		751			753			747			793			736			753			811			812			777			766			756
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		316			318			275			228			246			262			209			266			305			293			246
Income taxes (benefits)		116			117			102			77			87			92			73			94			108			105			78
Income (loss) from continuing operations before cumulative effect of accounting change		200			201			173			151			159			170			136			172			197			188			168
Cumulative effect of accounting change (a)		—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		200			201			173			151			159			170			136			172			197			188			168
Income from discontinued operations after-tax (a)		—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	200		$	201		$	173		$	151		$	159		$	170		$	136		$	172		$	197		$	188		$	168
Average loans	$	7.8		$	8.2		$	8.2		$	7.8		$	6.7		$	6.6		$	6.3		$	6.2		$	6.5		$	6.6		$	6.1
Average assets (b)	$	22.6		$	22.1		$	25.7		$	26.5		$	28.7		$	25.1		$	25.7		$	24.7		$	25.5		$	25.8		$	26.2
Average deposits	$	16.3		$	15.9		$	18.8		$	19.8		$	20.5		$	17.6		$	18.3		$	17.5		$	18.6		$	19.2		$	19.9
Average common equity	$	2.6		$	2.6		$	2.6		$	2.5		$	3.2		$	3.2		$	3.2		$	3.2		$	3.3		$	3.2		$	3.2
Average Tier I preferred equity	$	0.2		$	0.2		$	0.2		$	0.2		$	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)	$	610		$	588		$	562		$	581		$	566		$	612		$	625		$	657		$	679		$	679		$	670
Market value of assets under administration or custody at period end (in billions)	$	2,324		$	2,213		$	2,209		$	2,276		$	2,300		$	2,510		$	2,611		$	2,845		$	2,944		$	2,968		$	3,088
Return on common equity (c)(d)		31	%		31	%		26	%		24	%		20	%		21	%		17	%		21	%		24	%		23	%		21	%
Pretax operating margin (c)		30	%		30	%		27	%		22	%		25	%		26	%		20	%		25	%		28	%		28	%		25	%

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

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

(c) On a continuing operations basis.

(d) Ratios are annualized.

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

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 in the third quarter of 2003, 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—11 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2002												2003												2004
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th qtr			1st Qtr (e)			2nd Qtr (f)			3rd Qtr
Revenue:
Investment management	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			1			1
Institutional trust and custody		—			—			—			—			—			(1	)		1			(1	)		2			1			—
Securities lending revenue		—			—			—			—			—			—			—			—			—			—			—
Transfer revenue		—			(1	)		—			1			—			1			(1	)		—			—			—			1
Trust and investment fee revenue		—			(1	)		—			1			—			—			—			(1	)		2			2			2
Other fee revenue		57			40			37			73			49			52			78			80			145			70			76
Net interest revenue (expense)		(19	)		(25	)		(17	)		(14	)		(19	)		(18	)		(32	)		(30	)		(28	)		(28	)		(26	)
Total revenue		38			14			20			60			30			34			46			49			119			44			52
Credit quality expense		2			160			1			3			—			3			(1	)		(2	)		(7	)		—			(1	)
Operating expense		17			2			4			39			18			25			21			31			54			62			33
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		19			(148	)		15			18			12			6			26			20			72			(18	)		20
Income taxes (benefits)		8			(53	)		5			6			5			3			9			7			25			(6	)		7
Income (loss) from continuing operations before cumulative effect of accounting change		11			(95	)		10			12			7			3			17			13			47			(12	)		13
Cumulative effect of accounting change (a)		—			—			—			—			(7	)		—			—			—			—			—			—
Income from continuing operations		11			(95	)		10			12			—			3			17			13			47			(12	)		13
Income from discontinued operations after-tax (a)		—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	11		$	(95	)	$	10		$	12		$	—		$	3		$	17		$	13		$	47		$	(12	)	$	13
Average loans	$	1.3		$	1.5		$	1.6		$	1.4		$	1.5		$	1.3		$	1.1		$	1.1		$	1.0		$	0.9		$	0.9
Average assets (b)	$	9.0		$	10.4		$	8.0		$	7.2		$	6.1		$	8.8		$	7.3		$	7.5		$	7.7		$	7.6		$	7.2
Average deposits	$	1.2		$	2.0		$	1.1		$	0.9		$	0.9		$	1.5		$	0.9		$	0.9		$	0.6		$	0.6		$	0.4
Average common equity	$	0.9		$	0.8		$	0.7		$	0.8		$	0.2		$	0.4		$	0.3		$	0.4		$	0.5		$	0.5		$	0.6
Average Tier I preferred equity	$	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 (c)(d)		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 (c)		n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m

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

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

(c) On a continuing operations basis.

(d) Ratios are annualized.

(e) 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 pre-tax charge of $19 million associated with a writedown of small non-strategic businesses that the Corporation intends to exit.

(f) The second quarter of 2004 includes a $24 million pre-tax charge relating to vacating 10 leased locations in London and moving into the Corporation's new European Headquarters.

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 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 10

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

CONSOLIDATED RESULTS—11 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2002												2003												2004
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr (e)			4th Qtr			1st Qtr (f)			2nd Qtr (g)			3rd Qtr
Revenue:
Investment management	$	370		$	355		$	340		$	349		$	318		$	334		$	348		$	413		$	405		$	385		$	376
Human resources & investor solutions		269			264			232			255			240			245			229			230			233			233			221
Institutional trust and custody		117			125			122			115			109			116			114			132			133			133			127
Securities lending revenue		19			24			16			16			15			22			16			16			18			24			16
Transfer revenue		—			—			—			—			—			—			—			—			—			—			—
Trust and investment fee revenue		775			768			710			735			682			717			707			791			789			775			740
Other fee revenue		173			162			174			200			176			165			223			214			294			205			201
Net interest revenue (expense)		159			155			159			149			158			167			137			124			118			123			114
Total revenue		1,107			1,085			1,043			1,084			1,016			1,049			1,067			1,129			1,201			1,103			1,055
Credit quality expense		4			160			2			6			4			3			—			—			(7	)		—			—
Operating expense		768			755			751			832			754			778			832			843			831			828			789
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		335			170			290			246			258			268			235			286			377			275			266
Income taxes (benefits)		124			64			107			83			92			95			82			101			133			99			85
Income (loss) from continuing operations before cumulative effect of accounting change		211			106			183			163			166			173			153			185			244			176			181
Cumulative effect of accounting change (a)		—			—			—			—			(7	)		—			—			—			—			—			—
Income from continuing operations		211			106			183			163			159			173			153			185			244			176			181
Income from discontinued operations after-tax (a)		5			3			8			3			2			2			28			(1	)		1			—			2
Net income (loss)	$	216		$	109		$	191		$	166		$	161		$	175		$	181		$	184		$	245		$	176		$	183
Average loans	$	9.1		$	9.7		$	9.8		$	9.2		$	8.2		$	7.9		$	7.4		$	7.3		$	7.5		$	7.5		$	7.0
Average assets (b)	$	33.0		$	33.4		$	34.2		$	34.2		$	35.3		$	34.3		$	33.4		$	32.5		$	33.2		$	33.4		$	33.4
Average deposits	$	17.5		$	17.9		$	19.9		$	20.7		$	21.4		$	19.1		$	19.2		$	18.4		$	19.2		$	19.8		$	20.3
Average common equity	$	3.5		$	3.4		$	3.3		$	3.3		$	3.4		$	3.6		$	3.5		$	3.6		$	3.8		$	3.7		$	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
Market value of assets under management at period end (in billions)	$	610		$	588		$	562		$	581		$	566		$	612		$	625		$	657		$	679		$	679		$	670
Market value of assets under administration or custody at period end (in billions)	$	2,324		$	2,213		$	2,209		$	2,276		$	2,300		$	2,510		$	2,611		$	2,845		$	2,944		$	2,968		$	3,088
Return on common equity (c)(d)		25	%		13	%		22	%		19	%		19	%		20	%		17	%		20	%		26	%		19	%		19	%
Pretax operating margin (c)		30	%		16	%		28	%		23	%		25	%		25	%		22	%		25	%		31	%		25	%		25	%

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

(b) Consolidated average assets includes average assets of discontinued operations (including the assets of the fixed income trading business) of $0 in the first, second and third quarters, respectively of 2004, $0.5 billion, $0.4 billion, $0.4 billion and $0.3 billion for the first, second, third and fourth quarters, respectively of 2003, and $1.4 billion, $0.9 billion, $0.5 billion and $0.5 billion for the first, second, third and fourth quarters, respectively, of 2002.

(c) On a continuing operations basis.

(d) Ratios are annualized.

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

(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 pre-tax charge of $19 million associated with a writedown of small non-strategic businesses that the Corporation intends to exit.

(g) The second quarter of 2004 includes a $24 million pre-tax charge relating to vacating 10 leased locations in London and moving into the Corporation's new European Headquarters.

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 in the third quarter of 2003, 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—11 Quarter Trend

NONINTEREST REVENUE

(dollar amounts in millions unless otherwise noted)	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
Investment management	$	370		$	355		$	340		$	349		$	318		$	334		$	348		$	413		$	405		$	385		$	376
Human resources & investor solutions		269			264			232			255			240			245			229			230			233			233			221
Institutional trust & custody		117			125			122			115			109			116			114			132			133			133			127
Securities lending revenue		19			24			16			16			15			22			16			16			18			24			16
Trust and investment fee revenue (a)		775			768			710			735			682			717			707			791			789			775			740
Cash management revenue		64			67			71			71			72			71			83			83			78			79			77
Foreign exchange revenue		35			37			44			30			38			28			42			39			57			50			37
Financing-related revenue		34			38			34			41			32			38			30			41			35			30			32
Equity investment revenue (b)		21			(5	)		(23	)		(21	)		3			(18	)		3			6			98			9			23
Other revenue		10			13			10			36			11			13			38			21			14			19			21
Total fee and other revenue		939			918			846			892			838			849			903			981			1,071			962			930
Gains on the sales of securities		—			—			28			31			11			21			18			12			—			8			—
Total noninterest revenue (non-FTE)	$	939		$	918		$	874		$	923		$	849		$	870		$	921		$	993		$	1,071		$	970		$	930
FTE impact		9			12			10			12			9			12			9			12			12			10			11
Total noninterest revenue (FTE)	$	948		$	930		$	884		$	935		$	858		$	882		$	930		$	1,005		$	1,083		$	980		$	941
Fee revenue as a percentage of fee and net interest revenue (FTE) (b)		86	%		86	%		84	%		86	%		84	%		84	%		87	%		89	%		90	%		89	%		89	%
Market value of assets under management at period end (in billions)	$	610		$	588		$	562		$	581		$	566		$	612		$	625		$	657		$	679		$	679		$	670
Market value of assets under administration or custody at period end (in billions)	$	2,324		$	2,213		$	2,209		$	2,276		$	2,300		$	2,510		$	2,611		$	2,845		$	2,944		$	2,968		$	3,088
S&P 500 Index—period end		1147			990			815			880			848			975			996			1112			1126			1141			1115
S&P 500 Index—daily average		1132			1070			895			887			861			938			1000			1056			1133			1123			1104

(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 revenue (FTE) would have totaled 89%.

Note: For analytical purposes, the term "fee revenue", as utilized throughout this report, is defined as total noninterest revenue (including equity investment revenue) less gains on the sales of securities.

Page 12

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS—11 Quarter Trend

OPERATING EXPENSE

	2002								2003								2004
(dollar amounts in millions)	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr (b)		4th Qtr		1st Qtr (c)		2nd Qtr (d)		3rd Qtr
Staff Expense:
Compensation	$	324	$	322	$	321	$	349	$	326	$	323	$	349	$	327	$	316	$	319	$	323
Incentive (a)		111		95		82		98		64		76		87		117		105		94		91
Employee benefits		38		38		32		40		59		58		58		58		74		68		67
Total staff expense		473		455		435		487		449		457		494		502		495		481		481
Professional, legal and other purchased services		82		93		105		106		92		108		108		117		104		110		102
Net occupancy expense		63		60		63		60		64		65		68		68		68		93		66
Equipment expense		57		52		51		61		54		50		70		58		54		53		54
Business development		32		34		32		33		25		25		28		30		25		26		25
Communications expense		28		30		25		27		27		29		24		26		28		27		23
Amortization of intangible assets		3		4		3		5		5		4		5		5		5		4		5
Other expense		30		27		37		53		38		40		35		37		52		34		33
Total operating expense	$	768	$	755	$	751	$	832	$	754	$	778	$	832	$	843	$	831	$	828	$	789

(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 Statement 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, second and third quarters 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.

(d) The second quarter of 2004 includes a $24 million charge relating to vacating 10 leased locations in London and moving into the Corporation's new European Headquarters.

Nearly all of the charge was recorded as occupancy expense in the table above.

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MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS—11 Quarter Trend

NONPERFORMING ASSETS

	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
Nonperforming loans:
Commercial and financial	$	55		$	151		$	55		$	54		$	42		$	57		$	51		$	49		$	48		$	11		$	17
Personal		2			4			5			3			3			3			2			2			2			3			3
Commercial real estate		3			11			7			—			—			—			—			—			1			—			—
Lease finance assets		14			9			—			—			—			—			9			—			—			—			—
Total nonperforming loans		74			175			67			57			45			60			62			51			51			14			20
Total acquired property		1			1			2			2			1			1			1			1			—			1			1
Total nonperforming assets	$	75		$	176		$	69		$	59		$	46		$	61		$	63		$	52		$	51		$	15		$	21
Nonperforming loans as a percentage of total loans		0.77	%		1.78	%		0.72	%		0.68	%		0.58	%		0.77	%		0.86	%		0.69	%		0.68	%		0.20	%		0.30	%
Nonperforming assets as a percentage of Tier I capital plus the reserve for loan losses		3.00	%		7.55	%		3.14	%		2.66	%		2.01	%		2.51	%		2.48	%		2.09	%		1.99	%		0.56	%		0.82	%

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MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS—11 Quarter Trend

PROVISION AND RESERVE FOR CREDIT EXPOSURE

	2002												2003												2004
($ millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr
Reserve Activity:
Loan losses		96			106			242			127			127			114			113			110			103			94			96
Unfunded commitments		42			32			51			52			52			64			66			71			75			77			73
Reserve at beginning of period	$	138		$	138		$	293		$	179		$	179		$	178		$	179		$	181		$	178		$	171		$	169
Total credit losses		(2	)		(5	)		(88	)		(2	)		(1	)		(1	)		(2	)		(2	)		—			(2	)		(1	)
Total recoveries		1			1			3			8			10			1			4			2			—			2			1
Sub-total—net credit recoveries (losses)	$	(1	)	$	(4	)	$	(85	)	$	6		$	9		$	—		$	2		$	—		$	—		$	—		$	—
Credit losses on loans transferred to held for sale		(2	)		(3	)		(30	)		(4	)		(11	)		(2	)		—			(3	)		—			—			—
Total net credit recoveries (losses)	$	(3	)	$	(7	)	$	(115	)	$	2		$	(2	)	$	(2	)	$	2		$	(3	)	$	—		$	—		$	—
Impact of disposals and acquisitions		(1	)		2			—			—			—			—			—			—			—			—			—
Securitizations		—			—			—			(2	)		—			—			—			—			—			(2	)		—
Loss on sale of commitments		—			—			(1	)		(6	)		(3	)		—			—			—			—			—			—
Provision for credit losses		4			160			2			6			4			3			—			—			(7	)		—			—
Reserve at end of period	$	138		$	293		$	179		$	179		$	178		$	179		$	181		$	178		$	171		$	169		$	169
Reserve for loan losses	$	106		$	242		$	127		$	127		$	114		$	113		$	110		$	103		$	94		$	96		$	98
Reserve for unfunded commitments		32			51			52			52			64			66			71			75			77			73			71
Reserve at end of period	$	138		$	293		$	179		$	179		$	178		$	179		$	181		$	178		$	171		$	169		$	169
Reserve for loan losses as a percentage
of total loans (a)		1.11	%		2.47	%		1.36	%		1.51	%		1.46	%		1.46	%		1.52	%		1.37	%		1.27	%		1.39	%		1.40	%
Reserve for unfunded commitments as
a percentage of unfunded commitments (a)		0.13	%		0.21	%		0.22	%		0.25	%		0.32	%		0.35	%		0.39	%		0.44	%		0.46	%		0.47	%		0.47	%
Annualized net credit losses to average loans		0.15	%		0.26	%		4.64	%		-0.08	%		0.09	%		0.11	%		-0.12	%		0.21	%		0.00	%		0.00	%		0.00	%

(a) At period end.

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