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) – February 25, 2005

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

(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 Year End 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: February 25, 2005
	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 Year End 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
	2004			2003			2002			2004			2003			2002			2004			2003			2002			2004			2003			2002
Revenue:
Investment management	$	740		$	549		$	494		$	542		$	553		$	604		$	300		$	275		$	277		$	—		$	—		$	—
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			—			—			—
Institutional trust and custody		9			10			4			—			(4	)		4			9			9			11			478			422			434
Securities lending revenue		—			—			—			—			—			—			—			—			—			76			69			75
Transfer revenue		51			36			38			(59	)		(56	)		(59	)		4			10			17			(2	)		2			(2	)
Total trust and investment fee revenue		800			595			536			483			493			549			313			294			305			552			493			507
Other fee revenue		19			17			12			(2	)		—			(6	)		12			14			15			220			192			162
Net interest revenue (expense)		(15	)		(17	)		(28	)		(5	)		(4	)		7			212			223			209			69			82			95
Total revenue		804			595			520			476			489			550			537			531			529			841			767			764
Credit quality expense		—			—			—			—			—			—			1			1			—			—			—			—
Total operating expense		572			471			442			309			320			338			316			293			278			662			612			572
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		232			124			78			167			169			212			220			237			251			179			155			192
Income taxes (benefits)		79			44			30			57			60			85			75			84			89			62			55			67
Income (loss) from continuing operations before cumulative effect of accounting change		153			80			48			110			109			127			145			153			162			117			100			125
Cumulative effect of accounting change (a)		—			—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		153			80			48			110			109			127			145			153			162			117			100			125
Income from discontinued operations after-tax (a)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	153		$	80		$	48		$	110		$	109		$	127		$	145		$	153		$	162		$	117		$	100		$	125
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	3.4		$	2.9		$	2.7		$	0.1		$	—		$	—
Average assets (b)	$	1.4		$	1.3		$	1.2		$	0.6		$	0.7		$	0.7		$	6.2		$	5.5		$	5.0		$	7.2		$	5.8		$	4.7
Average deposits	$	—		$	—		$	—		$	—		$	—		$	—		$	5.3		$	4.6		$	4.4		$	5.8		$	4.2		$	3.4
Average common equity	$	0.6		$	0.5		$	0.2		$	0.2		$	0.2		$	0.4		$	0.5		$	0.4		$	0.2		$	0.6		$	0.6		$	0.5
Average Tier I preferred equity	$	0.3		$	0.3		$	—		$	0.1		$	0.1		$	—		$	0.2		$	0.2		$	—		$	0.1		$	0.1		$	—
Market value of assets under management at period end (in billions)(c)	$	526		$	466		$	373		$	133		$	143		$	164		$	48		$	48		$	44		$	—		$	—		$	—
Market value of assets under administration or custody at period end (in billions)	$	8		$	10		$	6		$	—		$	—		$	—		$	26		$	23		$	18		$	3,199		$	2,688		$	2,129
Return on common equity (d)		27	%		18	%		23	%		51	%		47	%		31	%		30	%		36	%		77	%		20	%		18	%		26	%
Pretax operating margin (d)		29	%		21	%		15	%		35	%		35	%		38	%		41	%		45	%		48	%		21	%		20	%		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 greater than average loans, average assets include an allocation of investment securities equal to the difference.

(c) 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 periods have been reclassified. The fees earned on these assets are shown as securities lending revenue in the Asset Servicing sector.

(d) On a continuing operations basis.

n/m - not meaningful

Notes: In the fourth quarter of 2004, the Corporation adopted discontinued operations accounting for certain businesses in Australia that were previously included primarily in the Institutional Asset Management sector. The results of these businesses have been removed from the applicable sector and accounted for as discontinued operations. Prior periods have been reclassified.

In the fourth quarter of 2004, expense reimbursements from joint ventures were recorded as other revenue. Previously, expense reimbursements were reported as a reduction of various expenses.

The impact of this reclassification was to increase both revenue and expense. Prior periods have been reclassified.

Prior periods sector data also 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
	2004			2003			2002			2004			2003			2002			2004			2003			2002			2004			2003			2002			2004			2003			2002
Revenue:
Investment management	$	35		$	36		$	39		$	—		$	—		$	—		$	1,617		$	1,413		$	1,414		$	—		$	—		$	—		$	1,617		$	1,413		$	1,414
Human resources & investor solutions		916			944			1,020			—			—			—			916			944			1,020			2			—			—			918			944			1,020
Institutional trust and custody		—			—			—			2			1			1			498			438			454			5			(1	)		(1	)		503			437			453
Securities lending revenue		—			—			—			—			—			—			76			69			75			—			—			—			76			69			75
Transfer revenue		(2	)		—			(1	)		7			8			7			(1	)		—			—			1			—			—			—			—			—
Trust and investment fee revenue		949			980			1,058			9			9			8			3,106			2,864			2,963			8			(1	)		(1	)		3,114			2,863			2,962
Other fee revenue (a)		4			(1	)		3			365			367			345			618			589			531			374			260			208			992			849			739
Net interest revenue (expense) (b)		19			3			(25	)		302			399			440			582			686			698			(108	)		(100	)		(75	)		474			586			623
Total revenue		972			982			1,036			676			775			793			4,306			4,139			4,192			274			159			132			4,580			4,298			4,324
Credit quality expense		—			—			—			—			6			6			1			7			6			(12	)		—			166			(11	)		7			172
Total operating expense		916			1,019			983			425			430			429			3,200			3,145			3,042			176			91			59			3,376			3,236			3,101
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		56			(37	)		53			251			339			358			1,105			987			1,144			110			68			(93	)		1,215			1,055			1,051
Income taxes (benefits) (c)		19			(16	)		17			86			120			127			378			347			415			37			25			(34	)		415			372			381
Income (loss) from continuing operations before cumulative effect of accounting change		37			(21	)		36			165			219			231			727			640			729			73			43			(59	)		800			683			670
Cumulative effect of accounting change (d)		—			—			—			—			—			—			—			—			—			—			(7	)		—			—			(7	)		—
Income from continuing operations		37			(21	)		36			165			219			231			727			640			729			73			36			(59	)		800			676			670
Income from discontinued operations after-tax (d)		—			—			—			—			—			—			—			—			—			—			—			—			(4	)		25			12
Net income (loss)	$	37		$	(21	)	$	36		$	165		$	219		$	231		$	727		$	640		$	729		$	73		$	36		$	(59	)	$	796		$	701		$	682
Average loans	$	—		$	—		$	—		$	2.9		$	3.5		$	5.3		$	6.4		$	6.4		$	8.0		$	0.9		$	1.3		$	1.4		$	7.3		$	7.7		$	9.4
Average assets (e)	$	1.5		$	1.8		$	1.4		$	9.4		$	10.9		$	11.2		$	26.3		$	26.0		$	24.2		$	7.6		$	7.4		$	8.6		$	34.0		$	33.9		$	33.7
Average deposits	$	0.8		$	0.4		$	0.1		$	7.9		$	9.3		$	9.8		$	19.8		$	18.5		$	17.7		$	0.6		$	1.0		$	1.3		$	20.4		$	19.5		$	19.0
Average common equity	$	0.4		$	0.4		$	0.3		$	0.9		$	1.1		$	1.0		$	3.2		$	3.2		$	2.6		$	0.6		$	0.3		$	0.8		$	3.8		$	3.5		$	3.4
Average Tier I preferred equity	$	0.2		$	0.2		$	—		$	0.1		$	0.1		$	0.2		$	1.0		$	1.0		$	0.2		$	—		$	—		$	0.8		$	1.0		$	1.0		$	1.0
Market value of assets under management at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	707		$	657		$	581		$	—		$	—		$	—		$	707		$	657		$	581
Market value of assets under administration or custody at period end (in billions)	$	107		$	114		$	116		$	—		$	—		$	—		$	3,340		$	2,835		$	2,269		$	—		$	—		$	—		$	3,340		$	2,835		$	2,269
Return on common equity (f)		10	%		-5	%		13	%		17	%		20	%		23	%		23	%		20	%		28	%		n/m			n/m			n/m			21	%		19	%		20	%
Pretax operating margin (f)		6	%		-4	%		5	%		37	%		44	%		45	%		26	%		24	%		27	%		n/m			n/m			n/m			27	%		25	%		24	%

(a) Consolidated results include FTE impact of $42 million, $43 million and $42 million for 2004, 2003 and 2002, respectively.

(b) Consolidated results include FTE impact of $16 million, $16 million and $12 million for 2004, 2003 and 2002, respectively.

(c) Consolidated results include FTE impact of $58 million, $59 million and $54 million for 2004, 2003 and 2002, respectively.

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

(e) Where average deposits are greater than average loans, average assets include an allocation of investment securities equal to the difference. Consolidated average assets include average assets of discontinued operations (including assets of the fixed income trading business) of $0.1 billion, $0.5 billion and $0.9 billion for 2004, 2003 and 2002, respectively.

(f) On a continuing operations basis.

n/m - not meaningful

Notes: 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 resulted 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.

In the fourth quarter of 2004, the Corporation adopted discontinued operations accounting for certain businesses in Australia that were previously included primarily in the Institutional Asset Management sector. The results of these businesses have been removed from the applicable sector and accounted for as discontinued operations. Prior periods have been reclassified.

In the fourth quarter of 2004, expense reimbursements from joint ventures were recorded as other revenue. Previously, expense reimbursements were reported as a reduction of various expenses. The impact of this reclassification was to increase both revenue and expense. Prior periods have been reclassified.

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

Page 2

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

INSTITUTIONAL ASSET MANAGEMENT - 12 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			4th Qtr
Revenue:
Investment management	$	132		$	118		$	112		$	132		$	107		$	122		$	130		$	190		$	183		$	164		$	160		$	233
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			—			—			—
Institutional trust and custody		1			1			1			1			1			4			2			3			2			2			3			2
Securities lending revenue		—			—			—			—			—			—			—			—			—			—			—			—
Transfer revenue (a)		11			10			10			7			7			10			9			10			12			15			10			14
Trust and investment fee revenue		144			129			123			140			115			136			141			203			197			181			173			249
Other fee revenue		4			2			1			5			3			3			5			6			10			(1	)		3			7
Net interest revenue (expense)		(7	)		(7	)		(8	)		(6	)		(4	)		(4	)		(5	)		(4	)		(4	)		(4	)		(3	)		(4	)
Total revenue		141			124			116			139			114			135			141			205			203			176			173			252
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—			—
Operating expense		110			101			104			127			105			108			112			146			135			127			125			185
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		31			23			12			12			9			27			29			59			68			49			48			67
Income taxes (benefits)		12			9			4			5			3			10			11			20			25			17			15			22
Income (loss) from continuing operations before cumulative effect of accounting change		19			14			8			7			6			17			18			39			43			32			33			45
Cumulative effect of accounting change (b)		—			—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		19			14			8			7			6			17			18			39			43			32			33			45
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	19		$	14		$	8		$	7		$	6		$	17		$	18		$	39		$	43		$	32		$	33		$	45
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets (c)	$	1.2		$	1.2		$	1.3		$	1.3		$	1.4		$	1.3		$	1.3		$	1.3		$	1.4		$	1.4		$	1.5		$	1.6
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		$	0.6
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	0.3		$	0.3		$	0.3		$	0.3		$	0.3		$	0.3		$	0.3		$	0.4
Market value of assets under management at period end (in billions)(d)	$	395		$	377		$	357		$	373		$	372		$	409		$	433		$	466		$	491		$	491		$	489		$	526
Market value of assets under administration or custody at period end (in billions)	$	—		$	—		$	—		$	6		$	6		$	8		$	9		$	10		$	7		$	6		$	8		$	8
Return on common equity (e)(f)		34	%		26	%		15	%		15	%		5	%		16	%		16	%		32	%		33	%		24	%		22	%		30	%
Pretax operating margin (e)		22	%		19	%		11	%		9	%		8	%		20	%		20	%		29	%		33	%		28	%		27	%		27	%

(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 greater than average loans, average assets include an allocation of investment securities equal to the difference.

(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, $86 billion and $87 billion in the first, second, third and fourth 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.

Notes: In the fourth quarter of 2004, the Corporation adopted discontinued operations accounting for certain businesses in Australia that were previously included primarily in the Institutional Asset Management sector. The results of these businesses have been removed from the applicable sector and accounted for as discontinued operations. Prior periods have been reclassified.

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

Page 3

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

MUTUAL FUNDS - 12 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			4th Qtr
Revenue:
Investment management	$	155		$	156		$	150		$	143		$	138		$	138		$	140		$	137		$	138		$	137		$	134		$	133
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	)		(15	)
Trust and investment fee revenue		142			143			135			129			124			122			123			124			122			124			119			118
Other fee revenue		(2	)		—			(2	)		(2	)		—			—			(1	)		1			(1	)		(1	)		—			—
Net interest revenue (expense)		2			1			2			2			(2	)		(1	)		—			(1	)		(1	)		(2	)		(1	)		(1	)
Total revenue		142			144			135			129			122			121			122			124			120			121			118			117
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—			—
Operating expense		84			86			83			85			77			79			80			84			77			77			77			78
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		58			58			52			44			45			42			42			40			43			44			41			39
Income taxes (benefits)		24			23			22			16			16			15			15			14			15			16			13			13
Income (loss) from continuing operations before cumulative effect of accounting change		34			35			30			28			29			27			27			26			28			28			28			26
Cumulative effect of accounting change (b)		—			—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		34			35			30			28			29			27			27			26			28			28			28			26
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	34		$	35		$	30		$	28		$	29		$	27		$	27		$	26		$	28		$	28		$	28		$	26
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		$	0.5
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		$	0.2
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	0.1		$	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		$	133
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	%		46	%
Pretax operating margin (d)		41	%		40	%		39	%		34	%		37	%		35	%		34	%		32	%		36	%		36	%		35	%		33	%

(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 greater than average loans, average assets include an allocation of investment securities equal to the difference.

(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 - 12 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			4th Qtr
Revenue:
Investment management	$	73		$	70		$	69		$	65		$	65		$	65		$	69		$	76		$	74		$	75		$	74		$	77
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			—			—			—
Institutional trust and custody		3			4			2			2			2			2			2			3			2			2			3			2
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			79
Other fee revenue		4			1			5			5			3			4			3			4			4			2			2			4
Net interest revenue (expense)		54			54			52			49			58			59			55			51			52			55			53			52
Total revenue		138			134			132			125			131			132			133			135			134			135			133			135
Credit quality expense		1			—			(1	)		—			—			—			—			1			—			1			—			—
Operating expense		70			66			68			74			68			73			76			76			77			78			78			83
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		67			68			65			51			63			59			57			58			57			56			55			52
Income taxes (benefits)		24			25			23			17			22			21			20			21			20			20			18			17
Income (loss) from continuing operations before cumulative effect of accounting change		43			43			42			34			41			38			37			37			37			36			37			35
Cumulative effect of accounting change (a)		—			—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		43			43			42			34			41			38			37			37			37			36			37			35
Income from discontinued operations after-tax (a)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	43		$	43		$	42		$	34		$	41		$	38		$	37		$	37		$	37		$	36		$	37		$	35
Average loans	$	2.5		$	2.7		$	2.8		$	2.7		$	2.7		$	2.8		$	2.9		$	3.1		$	3.3		$	3.4		$	3.4		$	3.5
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		$	6.4
Average deposits	$	4.5		$	4.4		$	4.3		$	4.5		$	4.6		$	4.6		$	4.6		$	4.7		$	5.0		$	5.3		$	5.4		$	5.5
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		$	0.5
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.1
Market value of total client assets at period end (in billions)(c)	$	74		$	70		$	64		$	66		$	64		$	69		$	71		$	75		$	76		$	76		$	76		$	78
Return on common equity (d)(e)		84	%		82	%		78	%		65	%		39	%		36	%		35	%		34	%		31	%		30	%		31	%		28	%
Pretax operating margin (d)		48	%		51	%		49	%		41	%		48	%		45	%		43	%		43	%		43	%		41	%		41	%		38	%

(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 greater than average loans, average assets include an allocation of investment securities equal to the difference.

(c) Includes assets under management, less amounts subadvised for other sectors, of $47 billion, $46 billion, $47 billion and $50 billion in the first, second, third and fourth 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 $42 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 - 12 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			4th Qtr
Revenue:
Investment management	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			—			—			—
Institutional trust and custody		104			111			112			107			100			105			104			113			120			118			113			127
Securities lending revenue		19			24			16			16			15			22			16			16			18			24			16			18
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			145
Other fee revenue		38			42			46			36			50			40			56			46			62			62			45			51
Net interest revenue (expense)		28			24			22			21			20			23			21			18			14			18			17			20
Total revenue		188			200			195			181			186			190			197			194			214			220			191			216
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—			—
Operating expense		136			142			146			148			145			147			157			163			163			163			160			176
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		52			58			49			33			41			43			40			31			51			57			31			40
Income taxes (benefits)		18			21			18			10			15			15			14			11			18			20			10			14
Income (loss) from continuing operations before cumulative effect of accounting change		34			37			31			23			26			28			26			20			33			37			21			26
Cumulative effect of accounting change (a)		—			—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		34			37			31			23			26			28			26			20			33			37			21			26
Income from discontinued operations after-tax (a)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	34		$	37		$	31		$	23		$	26		$	28		$	26		$	20		$	33		$	37		$	21		$	26
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		$	8.0
Average deposits	$	3.2		$	3.4		$	3.4		$	3.4		$	3.5		$	4.2		$	4.5		$	4.6		$	5.5		$	5.4		$	5.8		$	6.5
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		$	0.6
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	0.1		$	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		$	74
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		$	3,199
Return on common equity (d)(e)		29	%		32	%		26	%		18	%		21	%		19	%		18	%		13	%		22	%		25	%		14	%		18	%
Pretax operating margin (d)		28	%		29	%		25	%		19	%		22	%		23	%		20	%		16	%		24	%		26	%		16	%		19	%

(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 greater than average loans, average assets include an allocation of investment securities equal to the difference.

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

(d) On a continuing operations basis.

(e) Ratios are annualized.

Notes: In the fourth quarter of 2004, expense reimbursements from joint ventures were recorded as other revenue. Previously, expense reimbursements were reported as a reduction of various expenses. The impact of this reclassification was to increase both revenue and expense. Prior periods have been reclassified.

Prior periods sector data also 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 - 12 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			4th Qtr
Revenue:
Investment management (a)	$	10		$	11		$	9		$	9		$	8		$	9		$	9		$	10		$	10		$	9		$	8		$	8
Human resources & investor solutions		269			264			232			255			240			245			229			230			233			232			220			231
Institutional trust and custody		—			—			—			—			—			—			—			—			—			—			—			—
Securities lending revenue		—			—			—			—			—			—			—			—			—			—			—			—
Transfer revenue		—			—			—			(1	)		—			(1	)		1			—			(1	)		(1	)		1			(1	)
Trust and investment fee revenue		279			275			241			263			248			253			239			240			242			240			229			238
Other fee revenue		(3	)		—			5			1			1			(3	)		1			—			—			1			2			1
Net interest revenue (expense)		(7	)		(6	)		(6	)		(6	)		(4	)		—			2			5			4			4			5			6
Total revenue		269			269			240			258			245			250			242			245			246			245			236			245
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—			—
Operating expense		247			252			240			244			243			254			285			237			230			230			220			236
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		22			17			—			14			2			(4	)		(43	)		8			16			15			16			9
Income taxes (benefits)		8			5			—			4			—			(2	)		(17	)		3			6			5			5			3
Income (loss) from continuing operations before cumulative effect of accounting change		14			12			—			10			2			(2	)		(26	)		5			10			10			11			6
Cumulative effect of accounting change (b)		—			—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		14			12			—			10			2			(2	)		(26	)		5			10			10			11			6
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	14		$	12		$	—		$	10		$	2		$	(2	)	$	(26	)	$	5		$	10		$	10		$	11		$	6
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets (c)	$	1.3		$	1.3		$	1.5		$	1.5		$	1.7		$	1.7		$	1.8		$	1.8		$	1.4		$	1.4		$	1.5		$	1.6
Average deposits	$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.3		$	0.4		$	0.6		$	0.7		$	0.8		$	0.9		$	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		$	0.4
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	0.2		$	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)	$	136		$	121		$	114		$	116		$	112		$	107		$	110		$	114		$	110		$	103		$	101		$	107
Return on common equity (d)(e)		21	%		16	%		1	%		14	%		1	%		0	%		-25	%		4	%		11	%		11	%		12	%		7	%
Pretax operating margin (d)		8	%		6	%		0	%		5	%		0	%		-1	%		-18	%		3	%		7	%		6	%		7	%		4	%

(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 greater than average loans, average assets include an allocation of investment securities equal to the difference.

(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).

Notes: 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.

In the fourth quarter of 2004, the Corporation adopted discontinued operations accounting for certain businesses in Australia that were previously included primarily in the Institutional Asset Management sector. The results of these businesses have been removed from the applicable sector and accounted for as discontinued operations. Prior periods have been reclassified.

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

Page 7

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

TREASURY SERVICES - 12 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			4th Qtr
Revenue:
Investment management	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			—			—			—
Institutional trust and custody		—			—			—			1			—			—			—			1			—			1			—			1
Securities lending revenue		—			—			—			—			—			—			—			—			—			—			—			—
Transfer revenue		2			2			2			1			2			3			1			2			2			1			2			2
Trust and investment fee revenue		2			2			2			2			2			3			1			3			2			2			2			3
Other fee revenue		82			84			90			89			87			87			100			93			92			91			91			91
Net interest revenue (expense)		108			114			114			104			109			108			97			85			81			80			70			71
Total revenue		192			200			206			195			198			198			198			181			175			173			163			165
Credit quality expense		1			—			2			3			4			—			1			1			—			(1	)		1			—
Operating expense		104			105			106			114			106			104			111			109			104			103			105			113
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		87			95			98			78			88			94			86			71			71			71			57			52
Income taxes (benefits)		31			34			35			27			31			33			31			25			25			26			18			17
Income (loss) from continuing operations before cumulative effect of accounting change		56			61			63			51			57			61			55			46			46			45			39			35
Cumulative effect of accounting change (a)		—			—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		56			61			63			51			57			61			55			46			46			45			39			35
Income from discontinued operations after-tax (a)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	56		$	61		$	63		$	51		$	57		$	61		$	55		$	46		$	46		$	45		$	39		$	35
Average loans	$	5.3		$	5.5		$	5.4		$	5.1		$	4.0		$	3.7		$	3.4		$	3.1		$	3.1		$	3.1		$	2.7		$	2.8
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		$	10.1
Average deposits	$	8.5		$	8.0		$	11.0		$	11.8		$	12.3		$	8.5		$	8.8		$	7.6		$	7.4		$	7.7		$	7.8		$	8.6
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		$	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		$	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	%		15	%
Pretax operating margin (c)		46	%		47	%		48	%		39	%		45	%		47	%		43	%		39	%		41	%		41	%		35	%		32	%

(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 greater than average loans, average assets include an allocation of investment securities equal to the difference.

(c) On a continuing operations basis.

(d) Ratios are annualized.

Notes: In the fourth quarter of 2003, based on the actions taken by the Bureau of Public Debt that resulted 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.

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 - 12 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			4th Qtr
Revenue:
Investment management	$	370		$	355		$	340		$	349		$	318		$	334		$	348		$	413		$	405		$	385		$	376		$	451
Human resources & investor solutions		269			264			232			255			240			245			229			230			233			232			220			231
Institutional trust and custody		111			118			115			110			102			110			105			121			123			124			119			132
Securities lending revenue		19			24			16			16			15			22			16			16			18			24			16			18
Transfer revenue		—			1			—			(1	)		—			(1	)		1			—			—			—			(1	)		—
Trust and investment fee revenue		769			762			703			729			675			710			699			780			779			765			730			832
Other fee revenue		123			129			145			134			144			131			164			150			167			154			143			154
Net interest revenue (expense)		178			180			176			164			177			185			170			154			146			151			141			144
Total revenue		1,070			1,071			1,024			1,027			996			1,026			1,033			1,084			1,092			1,070			1,014			1,130
Credit quality expense		2			—			1			3			4			—			1			2			—			—			1			—
Operating expense		751			752			747			792			744			765			821			815			786			778			765			871
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		317			319			276			232			248			261			211			267			306			292			248			259
Income taxes (benefits)		117			117			102			79			87			92			74			94			109			104			79			86
Income (loss) from continuing operations before cumulative effect of accounting change		200			202			174			153			161			169			137			173			197			188			169			173
Cumulative effect of accounting change (a)		—			—			—			—			—			—			—			—			—			—			—			—
Income from continuing operations		200			202			174			153			161			169			137			173			197			188			169			173
Income from discontinued operations after-tax (a)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	200		$	202		$	174		$	153		$	161		$	169		$	137		$	173		$	197		$	188		$	169		$	173
Average loans	$	7.8		$	8.2		$	8.2		$	7.8		$	6.7		$	6.6		$	6.3		$	6.2		$	6.5		$	6.6		$	6.1		$	6.3
Average assets (b)	$	22.6		$	22.1		$	25.7		$	26.5		$	28.7		$	25.0		$	25.7		$	24.6		$	25.4		$	25.7		$	26.2		$	28.2
Average deposits	$	16.3		$	15.9		$	18.8		$	19.8		$	20.5		$	17.6		$	18.3		$	17.5		$	18.6		$	19.2		$	19.9		$	21.5
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		$	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		$	1.0
Market value of assets under management at period end (in billions)	$	610		$	588		$	562		$	581		$	566		$	612		$	625		$	657		$	679		$	679		$	670		$	707
Market value of assets under administration or custody at period end (in billions)	$	2,318		$	2,206		$	2,202		$	2,269		$	2,293		$	2,504		$	2,603		$	2,835		$	2,935		$	2,959		$	3,079		$	3,340
Return on common equity (c)(d)		31	%		31	%		27	%		24	%		20	%		21	%		17	%		21	%		24	%		24	%		21	%		21	%
Pretax operating margin (c)		30	%		30	%		27	%		23	%		25	%		26	%		20	%		25	%		28	%		27	%		24	%		23	%

(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 greater than average loans, average assets include an allocation of investment securities equal to the difference.

(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).

Notes: 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 resulted 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.

In the fourth quarter of 2004, the Corporation adopted discontinued operations accounting for certain businesses in Australia that were previously included primarily in the Institutional Asset Management sector. The results of these businesses have been removed from the applicable sector and accounted for as discontinued operations. Prior periods have been reclassified.

In the fourth quarter of 2004, expense reimbursements from joint ventures were recorded as other revenue. Previously, expense reimbursements were reported as a reduction of various expenses. The impact of this reclassification was to increase both revenue and expense. Prior periods have been reclassified.

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

Page 9

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

OTHER ACTIVITY - 12 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			4th Qtr (g)
Revenue:
Investment management	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Human resources & investor solutions		—			—			—			—			—			—			—			—			—			1			1			—
Institutional trust and custody		—			1			(1	)		(1	)		—			(1	)		1			(1	)		2			1			—			2
Securities lending revenue		—			—			—			—			—			—			—			—			—			—			—			—
Transfer revenue		—			(1	)		—			1			—			1			(1	)		—			—			—			1			—
Trust and investment fee revenue		—			—			(1	)		—			—			—			—			(1	)		2			2			2			2
Other fee revenue		57			40			37			74			49			53			78			80			145			70			76			83
Net interest revenue (expense)		(19	)		(25	)		(17	)		(14	)		(19	)		(19	)		(32	)		(30	)		(28	)		(28	)		(26	)		(26	)
Total revenue		38			15			19			60			30			34			46			49			119			44			52			59
Credit quality expense		2			160			1			3			—			3			(1	)		(2	)		(7	)		—			(1	)		(4	)
Operating expense		17			3			3			36			19			18			23			31			54			62			34			26
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		19			(148	)		15			21			11			13			24			20			72			(18	)		19			37
Income taxes (benefits)		8			(53	)		5			6			5			5			8			7			25			(6	)		6			12
Income (loss) from continuing operations before cumulative effect of accounting change		11			(95	)		10			15			6			8			16			13			47			(12	)		13			25
Cumulative effect of accounting change (a)		—			—			—			—			(7	)		—			—			—			—			—			—			—
Income from continuing operations		11			(95	)		10			15			(1	)		8			16			13			47			(12	)		13			25
Income from discontinued operations after-tax (a)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	11		$	(95	)	$	10		$	15		$	(1	)	$	8		$	16		$	13		$	47		$	(12	)	$	13		$	25
Average loans	$	1.3		$	1.5		$	1.6		$	1.4		$	1.5		$	1.3		$	1.1		$	1.1		$	1.0		$	0.9		$	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		$	7.7
Average deposits	$	1.2		$	2.0		$	1.1		$	0.9		$	0.9		$	1.5		$	0.9		$	0.9		$	0.6		$	0.6		$	0.4		$	0.5
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		$	0.8
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			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			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 greater than average loans, average assets include an allocation of investment securities equal to the difference.

(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 is in the process of exiting.

(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.

(g) The fourth quarter of 2004 includes a $17 million pre-tax occupancy expense reduction relating to the reduction of a sublease loss reserve following the execution of a new lease on our Pittsburgh headquarters building.

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 resulted 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.

In the fourth quarter of 2004, the Corporation adopted discontinued operations accounting for certain businesses in Australia that were previously included primarily in the Institutional Asset Management sector. The results of these businesses have been removed from the applicable sector and accounted for as discontinued operations. Prior periods have been reclassified.

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

Page 10

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

CONSOLIDATED RESULTS - 12 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			4th Qtr (h)
Revenue:
Investment management	$	370		$	355		$	340		$	349		$	318		$	334		$	348		$	413		$	405		$	385		$	376		$	451
Human resources & investor solutions		269			264			232			255			240			245			229			230			233			233			221			231
Institutional trust and custody		111			119			114			109			102			109			106			120			125			125			119			134
Securities lending revenue		19			24			16			16			15			22			16			16			18			24			16			18
Transfer revenue		—			—			—			—			—			—			—			—			—			—			—			—
Trust and investment fee revenue		769			762			702			729			675			710			699			779			781			767			732			834
Other fee revenue		180			169			182			208			193			184			242			230			312			224			219			237
Net interest revenue (expense)		159			155			159			150			158			166			138			124			118			123			115			118
Total revenue		1,108			1,086			1,043			1,087			1,026			1,060			1,079			1,133			1,211			1,114			1,066			1,189
Credit quality expense		4			160			2			6			4			3			—			—			(7	)		—			—			(4	)
Operating expense		768			755			750			828			763			783			844			846			840			840			799			897
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		336			171			291			253			259			274			235			287			378			274			267			296
Income taxes (benefits)		125			64			107			85			92			97			82			101			134			98			85			98
Income (loss) from continuing operations before cumulative effect of accounting change		211			107			184			168			167			177			153			186			244			176			182			198
Cumulative effect of accounting change (a)		—			—			—			—			(7	)		—			—			—			—			—			—			—
Income from continuing operations		211			107			184			168			160			177			153			186			244			176			182			198
Income from discontinued operations after-tax (a)		5			2			7			(2	)		1			(2	)		28			(2	)		1			—			1			(6	)
Net income (loss)	$	216		$	109		$	191		$	166		$	161		$	175		$	181		$	184		$	245		$	176		$	183		$	192
Average loans	$	9.1		$	9.7		$	9.8		$	9.2		$	8.2		$	7.9		$	7.4		$	7.3		$	7.5		$	7.5		$	7.0		$	7.2
Average assets (b)	$	33.0		$	33.4		$	34.2		$	34.2		$	35.3		$	34.3		$	33.4		$	32.4		$	33.2		$	33.4		$	33.9		$	35.9
Average deposits	$	17.5		$	17.9		$	19.9		$	20.7		$	21.4		$	19.1		$	19.2		$	18.4		$	19.2		$	19.8		$	20.3		$	22.0
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		$	4.0
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
Market value of assets under management at period end (in billions)	$	610		$	588		$	562		$	581		$	566		$	612		$	625		$	657		$	679		$	679		$	670		$	707
Market value of assets under administration or custody at period end (in billions)	$	2,318		$	2,206		$	2,202		$	2,269		$	2,293		$	2,504		$	2,603		$	2,835		$	2,935		$	2,959		$	3,079		$	3,340
Return on common equity (c)(d)		25	%		13	%		22	%		20	%		19	%		20	%		17	%		20	%		26	%		19	%		19	%		20	%
Pretax operating margin (c)		30	%		16	%		28	%		23	%		25	%		26	%		22	%		25	%		31	%		25	%		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, third and fourth 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 is in the process of exiting.

(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.

(h) The fourth quarter of 2004 includes a $17 million pre-tax occupancy expense reduction relating to the reduction of a sublease loss reserve following the execution of a new lease on our Pittsburgh headquarters building.

Notes: 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 resulted 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.

In the fourth quarter of 2004, the Corporation adopted discontinued operations accounting for certain businesses in Australia that were previously included primarily in the Institutional Asset Management sector. The results of these businesses have been removed from the applicable sector and accounted for as discontinued operations. Prior periods have been reclassified.

In the fourth quarter of 2004, expense reimbursements from joint ventures were recorded as other revenue. Previously, expense reimbursements were reported as a reduction of various expenses.

The impact of this reclassification was to increase both revenue and expense. Prior periods have been reclassified.

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

Page 11

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 12 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			4th Qtr
Investment management	$	370		$	355		$	340		$	349		$	318		$	334		$	348		$	413		$	405		$	385		$	376		$	451
Human resources & investor solutions		269			264			232			255			240			245			229			230			233			233			221			231
Institutional trust & custody		111			119			114			109			102			109			106			120			125			125			119			134
Securities lending revenue		19			24			16			16			15			22			16			16			18			24			16			18
Trust and investment fee revenue (a)		769			762			702			729			675			710			699			779			781			767			732			834
Cash management revenue		64			67			71			71			72			71			83			83			78			79			77			74
Foreign exchange revenue		35			37			44			30			38			28			42			39			57			50			37			41
Financing-related revenue		34			38			34			41			32			38			30			41			35			30			32			41
Equity investment revenue (b)		21			(5	)		(23	)		(21	)		3			(18	)		3			6			98			9			24			29
Other revenue		17			20			18			45			28			32			56			37			32			39			39			41
Total fee and other revenue		940			919			846			895			848			861			913			985			1,081			974			941			1,060
Gains on the sales of securities		—			—			28			31			11			21			18			12			—			8			—			—
Total noninterest revenue (non-FTE)	$	940		$	919		$	874		$	926		$	859		$	882		$	931		$	997		$	1,081		$	982		$	941		$	1,060
FTE impact		9			12			10			11			9			12			10			12			12			9			10			11
Total noninterest revenue (FTE)	$	949		$	931		$	884		$	937		$	868		$	894		$	941		$	1,009		$	1,093		$	991		$	951		$	1,071
Fee revenue as a percentage of fee and net interest revenue (FTE) (b)		86	%		86	%		84	%		86	%		84	%		84	%		87	%		89	%		90	%		89	%		89	%		90	%
Market value of assets under management at period end (in billions)	$	610		$	588		$	562		$	581		$	566		$	612		$	625		$	657		$	679		$	679		$	670		$	707
Market value of assets under administration or custody at period end (in billions)	$	2,318		$	2,206		$	2,202		$	2,269		$	2,293		$	2,504		$	2,603		$	2,835		$	2,935		$	2,959		$	3,079		$	3,340
S&P 500 Index -period end		1147			990			815			880			848			975			996			1112			1126			1141			1115			1212
S&P 500 Index - daily average		1132			1070			895			887			861			938			1000			1056			1133			1123			1104			1163

(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.

Excluding this gain, fee revenue as a percentage of fee and net interest revenue (FTE) would have totaled 89%.

Notes: 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.

In the fourth quarter of 2004, the Corporation adopted discontinued operations accounting for certain businesses in Australia that were previously included primarily in the Institutional Asset Management sector. The results of these businesses have been removed from the applicable sector and accounted for as discontinued operations. Prior periods have been reclassified.

In the fourth quarter of 2004, expense reimbursements from joint ventures were recorded as other revenue. Previously, expense reimbursements were reported as a reduction of various expenses. The impact of this reclassification was to increase both revenue and expense. Prior periods have been reclassified.

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

Page 12

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 12 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		4th Qtr (e)
Staff Expense:
Compensation	$	321	$	317	$	317	$	343	$	323	$	318	$	347	$	321	$	312	$	316	$	320	$	340
Incentive (a)		111		94		82		97		65		76		86		116		105		94		90		126
Employee benefits		37		39		32		40		58		57		58		58		73		67		68		66
Total staff expense		469		450		431		480		446		451		491		495		490		477		478		532
Professional, legal and other purchased services		84		95		104		108		94		111		111		115		106		112		105		126
Net occupancy expense		63		60		62		60		64		65		68		68		69		92		67		56
Equipment expense		55		51		50		58		52		49		68		57		52		52		52		53
Business development		32		34		32		33		25		26		27		30		25		26		25		27
Communications expense		28		30		25		27		27		29		24		26		28		27		23		28
Amortization of intangible assets		3		3		4		4		5		4		5		4		5		4		5		7
Other expense		34		32		42		58		50		48		50		51		65		50		44		68
Total operating expense	$	768	$	755	$	750	$	828	$	763	$	783	$	844	$	846	$	840	$	840	$	799	$	897

(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 quarters and approximately $1 million in the fourth quarter of 2003 and approximately $4 million, $4 million, $5 million, $5 million, respectively, in the first, second, third and fourth 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 is in the process of exiting.

(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.

(e) The fourth quarter of 2004 includes a $17 million pre-tax occupancy expense reduction relating to the reduction of a sublease loss reserve following the execution of a new lease on our Pittsburgh headquarters building. Nearly all of the reduction was recorded as occupancy expense in the table above.

Note: In the fourth quarter of 2004, the Corporation adopted discontinued operations accounting for certain businesses in Australia that were previously included primarily in the Institutional Asset Management sector. The results of these businesses have been removed from the applicable sector and accounted for as discontinued operations. Prior periods have been reclassified.

In the fourth quarter of 2004, expense reimbursements from joint ventures were recorded as other revenue. Previously, expense reimbursements were reported as a reduction of various expenses. The impact of this reclassification was to increase both revenue and expense. Prior periods have been reclassified.

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

Page 13

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 12 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			4th Qtr
Nonperforming loans:
Commercial and financial	$	55		$	151		$	55		$	54		$	42		$	57		$	51		$	49		$	48		$	11		$	17		$	25
Personal		2			4			5			3			3			3			2			2			2			3			3			4
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			29
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		$	29
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	%		0.43	%
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	%		1.08	%

Page 14

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 12 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			4th Qtr
Reserve Activity:
Loan losses		96			106			242			127			127			114			113			110			103			94			96			98
Unfunded commitments		42			32			51			52			52			64			66			71			75			77			73			71
Reserve at beginning of period	$	138		$	138		$	293		$	179		$	179		$	178		$	179		$	181		$	178		$	171		$	169		$	169
Total credit losses		(2	)		(5	)		(88	)		(2	)		(1	)		(1	)		(2	)		(2	)		—			(2	)		(1	)		(1	)
Total recoveries		1			1			3			8			10			1			4			2			—			2			1			2
Sub-total - net credit recoveries (losses)	$	(1	)	$	(4	)	$	(85	)	$	6		$	9		$	—		$	2		$	—		$	—		$	—		$	—		$	1
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	)	$	—		$	—		$	—		$	1
Impact of disposals and acquisitions		(1	)		2			—			—			—			—			—			—			—			—			—			—
Securitizations		—			—			—			(2	)		—			—			—			—			—			(2	)		—			(1	)
Loss on sale of commitments		—			—			(1	)		(6	)		(3	)		—			—			—			—			—			—			—
Provision for credit losses		4			160			2			6			4			3			—			—			(7	)		—			—			(4	)
Reserve at end of period	$	138		$	293		$	179		$	179		$	178		$	179		$	181		$	178		$	171		$	169		$	169		$	165
Reserve for loan losses	$	106		$	242		$	127		$	127		$	114		$	113		$	110		$	103		$	94		$	96		$	98		$	98
Reserve for unfunded commitments		32			51			52			52			64			66			71			75			77			73			71			67
Reserve at end of period	$	138		$	293		$	179		$	179		$	178		$	179		$	181		$	178		$	171		$	169		$	169		$	165
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	%		1.45	%
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	%		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	%		-0.03	%

(a) At period end.

Page 15