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) – April 18, 2006

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

N/A

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

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 2.02.  RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On April 18, 2006, the Registrant conducted a conference call and webcast with respect to results of operations for first quarter 2006. In conjunction with the conference call and webcast, the Registrant made available on its website beginning on April 18, 2006, a Quarterly Earnings Summary and Financial Trends information. The Quarterly Earnings Summary is included as Exhibit 99.1 to this report, is “furnished” pursuant to General Instruction B.2. of Form 8-K, is not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into any filings the Registrant has made or may make under the Securities Act of 1933. The Financial Trends information is included as Exhibit 99.2 to this report, is to be considered “filed” under Section 18 of the Securities Exchange Act of 1934 and is incorporated by reference into all filings made by the Registrant under the Securities Act of 1933 which state that this Current Report on Form 8-K is incorporated therein by reference.

ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS

Exhibits 99.1 and 99.2 to this report contain 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 these measures are useful to the investment community in analyzing the financial results and trends of ongoing operations. Management believes that they facilitate comparisons with prior periods and reflect the principal basis on which management monitors financial performance. Management also believes this presentation allows investors to more appropriately evaluate the impact of revenues from both taxable and tax-exempt sources.

(d) Exhibits.

Exhibit Number	Description
99.1	Mellon Financial Corporation Quarterly Earnings Summary for first quarter 2006 dated April 18, 2006.
99.2	Mellon Financial Corporation – Quarterly Earnings Summary - Appendix – Financial Trends dated April 18, 2006.

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: April 24, 2006	By:	/s/ Michael A. Bryson
		Michael A. Bryson
		Chief Financial Officer

EXHIBIT INDEX

Number	Description	Method of Filing
99.1	Mellon Financial Corporation Quarterly Earnings Summary for first quarter 2006 dated April 18, 2006.	Furnished herewith
99.2	Mellon Financial Corporation – Quarterly Earnings Summary - Appendix – Financial Trends dated April 18, 2006.	Filed herewith

EX-99.1

Exhibit 99.1

Mellon Financial Corporation

Quarterly Earnings Summary

April 18, 2006

Table of Contents

Cautionary Statement	1
First Quarter 2006 Financial Highlights	2
Summary Income Statement	3
Noninterest Revenue	4
Net Interest Revenue	5
Operating Expense	6
Revenue and Pretax Income Mix / Assets Under Management Flows	7
Business Sectors Summary	8
Mellon Asset Management	9
Private Wealth Management	10
Asset Servicing	11
Payment Solutions & Investor Services	12
Other / Discontinued Operations	13
Supplemental information - Reconciliation of Reported GAAP Amounts to Adjusted Non-GAAP Amounts	14
Appendix – Financial Trends (Filed as Exhibit 99.2)

All narrative comparisons are with the first quarter of 2005 unless otherwise noted. All information in this Quarterly Earnings Summary is reported on a continuing operations basis, unless otherwise noted. Discontinued operations are discussed on page 13.

Throughout this Quarterly Earnings Summary, certain first quarter 2005/2006 measures, which are noted, exclude certain items. We believe these measures are useful to the investment community in analyzing the financial results and trends of ongoing operations. We believe they facilitate comparisons with prior periods and reflect the principal basis on which our management monitors financial performance. See page 14 for a reconciliation of Reported Amounts presented in accordance with Generally Accepted Accounting Principles (GAAP) to Adjusted non-GAAP Amounts, which exclude these items. We do not believe any adjustments to Reported Amounts for the fourth quarter of 2005 are necessary to facilitate comparisons with the first quarter of 2006. We have made no adjustments to fourth quarter 2005 Reported Amounts for the purpose of our internal assessment of quarterly financial performance.

Mellon Financial Corporation 1Q06 Quarterly Earnings Summary

CAUTIONARY STATEMENT

A number of statements (i) in our presentations and (ii) in the responses to your questions are “forward-looking statements.” These statements relate to, among other things, the Corporation’s future financial results, including future revenue, expenses and earnings, seasonality factors, the use of excess capital, the expected second quarter 2006 net interest revenue, the normal seasonal decline in performance fees, the estimated re-pricing lives of securities, new business wins, the potential additional gain on the sale of large corporate real estate loans, as well as the Corporation’s overall plans, strategies, goals, objectives, expectations, estimates and intentions, and are based on assumptions that involve risks and uncertainties and that are subject to change based on various important factors (some of which are beyond the Corporation’s control). Actual results may differ materially from those expressed or implied as a result of these risks and uncertainties, including, but not limited to, changes in political and economic conditions; changes in the relevant benchmark to measure changes in investment management fees; equity, fixed-income and foreign exchange market fluctuations; changes in the mix of assets under management; the effects of the adoption of new accounting standards; corporate and personal customers’ bankruptcies; operational risk; inflation; technological change; success in the timely development of new products and services; competitive product and pricing pressures within the Corporation’s markets; consumer spending and savings habits; interest rate fluctuations; monetary fluctuations; acquisitions and integrations of acquired businesses; changes in law; changes in fiscal, monetary, regulatory, trade and tax policies and laws; success in gaining regulatory approvals when required; the effects of recent and any further terroristic acts and the results of the war on terrorism; as well as other risks and uncertainties detailed from time to time in the filings of the Corporation with the Securities and Exchange Commission. Such forward-looking statements speak only as of April 18, 2006, and the Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events.

Page - 1

Mellon Financial Corporation 1Q06 Quarterly Earnings Summary

FIRST QUARTER 2006 FINANCIAL HIGHLIGHTS

	Income from Continuing Operations				EPS from Continuing Operations
	$ millions		% growth		$		% growth
GAAP	$	202	(34	)%	$	.49	(32	)%
Non-GAAP Adjusted*	$	214	14	%	$	.52	18	%

* Non-GAAP adjustments are detailed on a supplemental table on page 14. The discussion below of total revenue, operating expenses, pre-tax margins as well as the proportion of total Mellon earnings is based on these adjustments.

Asset Management and Asset Servicing represented 89% of Mellon’s pre-tax income in the first quarter of 2006 (vs. 81% in the first quarter of 2005).

Business Sectors	Growth				% of Pretax		Commentary
	Revenue		Pre-tax
Mellon Asset Management	28	%	47	%	48	%	Net flows/performance fees/market
Private Wealth Management	2	%	(11	)%	21	%	Continued growth investment/strong fee growth/flat yield curve
Asset Servicing	29	%	23	%	20	%	New business/investment
							spending/acquisitions
Payment Solutions & Investor Services	(7	)%	(16	)%	11	%	Lower volumes/lower expenses

• Record Level of Assets under Management $808 billion, an increase of 11%; net inflows for the first quarter of 2006 totaled $9 billion (all long-term)

• Record Level of Assets under Custody/Administration $4.125 trillion, an increase of 25%

• Total Revenue increased 18% (detailed on page 3)

• Total Fee revenue increased 19% (detailed on page 4)

• Net interest revenue (FTE) totaled $130 million, an increase of 7% (detailed on page 5)

• Excluding acquisitions total revenue increased 16%

• Operating expense increased 20% (detailed on page 6)

• Driven principally by the growth in incentives, distribution and servicing expenses and acquisitions

• Excluding acquisitions, operating expense increased 16%

• Pre-tax margin was 26%, compared with a pre-tax margin of 27% for the first quarter of 2005

• The tangible shareholder’s equity ratio of 5.26% at March 31, 2006

• Targeted range of 4.25 – 5.00%

• Unrealized mark-to-market after tax losses on the securities available for sale portfolio increased by $57 million in the first quarter of 2006

• Repurchased 4.3 million shares during the first quarter of 2006 (net share reduction of 1.9 million)

• Repurchased 1 million shares on April 4, 2006

• Quarterly dividend increased by 2 cents (10%), to $.22/share

Page - 2

Mellon Financial Corporation 1Q06 Quarterly Earnings Summary

SUMMARY INCOME STATEMENT

Mellon Financial Corporation

Continuing Operations

																1Q06 vs. 1Q05
	2005												2006 1st Qtr			GAAP		Non-GAAP Adjusted(c)
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Total fee and other revenue (a)	$	1,152		$	998		$	1,038		$	1,107		$	1,140		(1	)%	19	%
Gains on sales of securities		—			—			1			—			—		—		—
Net interest revenue		117			127			118			123			126		7		7
Total revenue		1,269			1,125			1,157			1,230			1,266		—		18
Provision for credit losses		(1	)		3			12			5			1		N/M		N/M
Total operating expense (b)		804			826			871			916			966		20		20
Income from continuing operations before income taxes		466			296			274			309			299		(36	)	12
Provision for income taxes		161			93			78			101			97
Income from continuing operations	$	305		$	203		$	196		$	208		$	202		(34	)	14
Return on equity		30	%		20	%		19	%		20	%		20	%
Pre-tax operating margin (FTE)		37	%		27	%		24	%		26	%		24	%
- excluding the items in footnotes (a) and (b) below		27	%		27	%		24	%		26	%		26	%

(a) 1Q05 includes the $197 million gain from the sale of our remaining interest in Shinsei Bank.

(b) 1Q05 includes the $2 million additional charge associated with the move to the new Mellon Financial Centre in London, the $10 million charge associated with the early extinguishment of debt and a $3 million additional writedown of a business previously identified as held for sale. 1Q06 includes the $19 million charge recorded in connection with payments, awards and benefits payable to Mellon’s former chairman and chief executive officer, pursuant to his employment agreement.

(c) Non-GAAP adjustments are detailed on a supplemental table on page 14.

N/M - Not meaningful.

Page - 3

Mellon Financial Corporation 1Q06 Quarterly Earnings Summary

NONINTEREST REVENUE

(dollar amounts in millions, unless otherwise noted)	2005												2006 1st Qtr			1Q06 vs. 1Q05
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Investment management	$	402		$	417		$	438		$	447		$	466		16	%
Performance fees		27			26			41			77			58		114
Total investment management		429			443			479			524			524		22
Distribution and service		71			74			82			90			98		38
Institutional trust and custody		174			193			197			214			224		29
Payment solutions & investor services		134			142			122			126			121		(10	)
Foreign exchange trading		54			50			52			46			58		8
Financing-related/equity investment		251	(a)		50			51			49			54		N/M
Other		39			46			55			58			61		53
Total fee and other revenue		1,152			998			1,038			1,107			1,140		(1	)
Gains on sales of securities		—			—			1			—			—		—
Total noninterest revenue (non-FTE)	$	1,152		$	998		$	1,039		$	1,107		$	1,140		(1	)%
- Excluding items detailed on page 14	$	955											$	1,140		19	%
Total noninterest revenue (FTE)	$	1,162		$	1,010		$	1,047		$	1,118		$	1,149		(1	)%
Fee and other revenue as a percentage of total revenue (FTE)		91	%(a)		88	%		90	%		90	%		90	%
Market value of assets under management at period-end (in billions)	$	729		$	738		$	766		$	781		$	808		11	%
Market value of assets under custody or administration at period-end (in billions)	$	3,293		$	3,450		$	3,777		$	3,908		$	4,125		25	%
S&P 500 Index - period-end		1181			1191			1229			1248			1295		10	%
S&P 500 Index - daily average		1192			1182			1224			1231			1284		8	%

(a) The first quarter of 2005 includes a gain from the sale of our remaining investment in Shinsei Bank of $197 million. Excluding this gain, fee and other revenue as a percentage of total revenue (FTE) would have totaled 89%.

KEY POINTS

• Investment management fees were up a strong 22% driven by improved equity markets, higher performance fees and net asset inflows; excluding the impact of performance fees, investment management fees increased by 16%

• Distribution and service fees increased 38% reflecting higher market values and higher sales volumes of mutual funds; Mellon Global Investments, our non-U.S. distributor, accounted for approximately 60% of the growth, with the remainder accounted for primarily by Dreyfus

• Institutional trust & custody fees increased 29% reflecting net new business, the acquisitions of Mellon Analytical Solutions (MAS) and DPM Mellon in 2005 and higher equity market levels; excluding the impact of these acquisitions, institutional trust & custody fees increased 19%

• Payment solutions & investor services fees declined 10% reflecting lower ancillary services revenue at Mellon Investor Services, lower processing volumes in Global Cash Management and higher compensating balance credits in lieu of fees (recorded in net interest revenue)

• Foreign exchange trading increased 8% reflecting higher client volumes and higher volatility in minor currencies

• Financing-related in the first quarter of 2006 included a $7 million ($5 million net of severance/other expenses) gain on the sale of the large corporate real estate loans, partially offset by lower returns on corporate owned life insurance; equity investment revenue was flat excluding the 1Q05 Shinsei gain ($197 million)

• Other revenue increased 53% reflecting seed capital investment gains, fee revenue from Affiliated Computer Services (ACS) under a transitional service agreement as well as increased levels of expense reimbursements from the joint ventures

Page - 4

Mellon Financial Corporation 1Q06 Quarterly Earnings Summary

NET INTEREST REVENUE

	2005												2006 1st Qtr			1Q06 vs. 1Q05
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Net interest revenue (FTE)	$	121		$	133		$	123		$	126		$	130		7	%
Net interest margin (FTE)		1.92	%		2.07	%		1.84	%		1.85	%		1.95	%	3	bps
Selected average balances:
Money market investments	$	4,252		$	3,307		$	2,713		$	2,825		$	2,330		(45	)%
Trading account securities		308			293			309			283			309		1
Securities		13,714			14,444			15,967			16,823			17,503		28
Loans		6,882			7,339			7,421			7,133			6,758		(2	)
Interest-earning assets		25,156			25,383			26,410			27,064			26,900		7
Interest-bearing deposits		15,913			15,302			16,155			16,013			15,295		(4	)
Noninterest-bearing deposits		7,122			7,020			7,411			7,892			8,274		16

KEY POINTS

• Net interest revenue increased 3% (unannualized) linked quarter reflecting a 10 basis point improvement in the net interest margin primarily due to a higher proportion of noninterest-bearing deposits; up 7% from 1Q05 driven primarily by a higher level of investment securities, as well as a higher level of free funds

• 2Q06 net interest revenue outlook - $126 to $131 million (FTE)

Securities Available for Sale

	2005												2006
(dollar amounts in billions)	Amortized Cost		1st Qtr Average Yield (FTE)		Estimated Average Re-pricing Life		Amortized Cost		4th Qtr Average Yield (FTE)		Estimated Average Re-pricing Life		Amortized Cost		1st Qtr Average Yield (FTE)		Estimated Average Re-pricing Life
Fixed rate:
U.S. Treasury and Agency	$	1.8	3.28	%	1.8	yr.	$	2.0	3.61	%	1.1	yr.	$	2.0	3.77	%	0.9	yr.
Other fixed rate*		5.1	4.96		6.3			4.6	5.02		7.2			4.4	5.01		7.1
Total fixed rate		6.9	4.52		5.1			6.6	4.60		5.4			6.4	4.63		5.2
Floating rate		4.7	3.20		0.1			7.2	4.72		0.1			8.2	5.10		0.1
Adjustable rate		2.7	3.61		1.8			3.6	4.10		2.0			3.7	4.22		2.0
Total	$	14.3	3.92	%	2.8	yr.	$	17.4	4.55	%	2.5	yr.	$	18.4	4.76	%	2.3	yr.

* Includes mortgage-backed, collateralized mortgage obligations, state and political subdivisions and corporate securities.

Page - 5

Mellon Financial Corporation 1Q06 Quarterly Earnings Summary

OPERATING EXPENSE

																1Q06 vs. 1Q05
	2005												2006 1st Qtr			GAAP		Non-GAAP Adjusted
(dollar amounts in millions, unless otherwise noted)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Staff:
Compensation	$	247		$	250		$	258		$	264		$	272		10	%	9	%
Incentives (a)		108			114			127			134			171		59		44
Employee benefits		66			63			67			66			76		15		14
Total staff		421			427			452			464			519	(c)	23		19
Professional, legal and other purchased services		100			110			114			123			115		15
Distribution and servicing		81			90			100			106			115		42
Net occupancy		59	(b)		57			61			59			59		—		4
Equipment		41			44			44			47			44		8
Business development		21			23			23			28			26		25
Communications		25			19			19			21			24		(4	)
Amortization of intangible assets		6			7			6			8			7		14
Other		50	(b)		49			52			60			57		12		52
Total non-staff		383			399			419			452			447		17		21
Total operating expense	$	804		$	826		$	871		$	916		$	966		20	%	20	%
Total staff expense as a percentage of total revenue (FTE)		33	%(c)		37	%		39	%		37	%		41	%(c)

(a) Stock option expense totaled $6 million, $6 million, $7 million and $6 million for each of the quarters of 2005. It totaled $11 million in the 1Q06, including $3 million for Mellon’s former chairman and CEO, pursuant to his employment agreement.

(b) The first quarter of 2005 includes a $10 million pre-tax charge (included in other expense) for the early extinguishment of debt and $5 million of additional expense ($2 million of occupancy expense and $3 million of other expenses) related to charges recorded in 2004 for the move to the new Mellon Financial Centre in London and a writedown of the remaining small non-strategic businesses previously identified as held for sale.

(c) Excluding the Shinsei gain, this ratio would have been 39% in the first quarter of 2005. The first quarter 2006 includes a $19 million pre-tax charge in connection with payments, awards and benefits payable to Mellon’s former chairman and chief executive officer, pursuant to his employment agreement. Excluding this charge, staff expense as a percentage of total revenue would have been 39%.

KEY POINTS

• Operating expense (excluding the amounts detailed on the supplemental table on page 14) increased $158 million, or 20%, reflecting increases of:

• $47 million in incentives associated with new business generation and performance fees reflecting a higher proportion of asset management activities in our business mix, as well as higher stock option expense

• $6 million in pension and severance expenses

• $34 million in distribution and services expenses

• $34 million related to acquisitions

• Excluding the impact of acquisitions and items detailed on the table on page 14, operating expense increased 16%, equal to the increase in total revenue calculated on the same basis

Page - 6

Mellon Financial Corporation 1Q06 Quarterly Earnings Summary

First Quarter 2006 Revenue and Pre-tax Income Mix

Revenue	Pre-tax Income*
81% Asset Management and Asset Servicing	89% Asset Management and Asset Servicing
	*  Reflects Non-Gaap adjustments

Assets Under Management flows

Changes in market value of assets under management from March 31, 2005 to March 31, 2006 - by business sector

(in billions)	Mellon Asset Management		Private Wealth Management		Asset Servicing		Total
Market value of assets under management at March 31, 2005	$	585	$	49	$	95	$	729
Net inflows:
Long-term		24		2		—		26
Money market/securities lending		5		—		9		14
Total net inflows		29		2		9		40
Net market appreciation (a)		35		3		—		38
Acquisitions		—		1		—		1
Market value of assets under management at March 31, 2006	$	649	$	55	$	104	$	808

(a) Includes the effect of changes in foreign exchange rates.

Changes in market value of assets under management from Dec. 31, 2005 to March 31, 2006 - by business sector

(in billions)	Mellon Asset Management			Private Wealth Management		Asset Servicing		Total
Market value of assets under management at Dec. 31, 2005	$	625		$	53	$	103	$	781
Net inflows:
Long-term		10			1		—		11
Money market/securities lending		(3	)		—		1		(2	)
Total net inflows		7			1		1		9
Net market appreciation (a)		17			1		—		18
Market value of assets under management at March 31, 2006	$	649		$	55	$	104	$	808

(a) Includes the effect of changes in foreign exchange rates.

Page - 7

Mellon Financial Corporation 1Q06 Quarterly Earnings Summary

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS SUMMARY

During the first quarter of 2006 we moved the financial results of Mellon 1^st Business Bank, National Association to the Private Wealth Management sector from the Other sector (previously the Treasury Services/Other Activity sector). This change reflects the similar nature of products and clients of Mellon 1^st Business Bank with other reporting units in the Private Wealth Management sector, as well as our organizational structure, as the management of Mellon 1^st Business Bank reports to the head of Private Wealth Management. Historical sector results for Private Wealth Management and Other have been restated to reflect this change.

In addition, consistent with refinements to our economic capital models, as well as changes in business activity and risk profiles, we adjusted our allocations of common equity and trust-preferred for 2006 to better reflect the operational, credit, market and strategic risk inherent in each business sector. Overall, slightly less capital was allocated to Payment Solutions & Investor Services, Mellon Asset Management and Private Wealth Management and slightly more to Asset Servicing, but overall the changes were not significant.

(dollar amounts in millions unless otherwise noted, presented on an FTE basis)	Mellon Asset Management									Private Wealth Management
	1Q06			4Q05			1Q05			1Q06			4Q05			1Q05
Total revenue	$	550		$	533		$	431		$	172		$	171		$	169
Operating expense		390			372			323			103			100			91
Income from continuing operations before taxes (FTE)	$	160		$	161		$	108		$	69		$	71		$	78
Return on common equity		44	%		43	%		29	%		34	%		32	%		35	%
Pre-tax operating margin		29	%		30	%		25	%		40	%		41	%		46	%
(dollar amounts in millions, unless otherwise noted, presented on an FTE basis)	Asset Servicing									Payment Solutions & Investor Services
	1Q06			4Q05			1Q05			1Q06			4Q05			1Q05
Total revenue	$	313		$	289		$	243		$	167		$	171		$	179
Operating expense		245			238			188			129			132			133
Income from continuing operations before taxes (FTE)	$	68		$	51		$	55		$	38		$	39		$	46
Return on common equity		34	%		27	%		30	%		39	%		31	%		38	%
Pre-tax operating margin		22	%		18	%		23	%		23	%		23	%		26	%
(dollar amounts in millions, unless otherwise noted, presented on an FTE basis)	Other									Total Consolidated
	1Q06			4Q05			1Q05			1Q06			4Q05			1Q05
Total revenue	$	77		$	80		$	261	(a)	$	1,279		$	1,244		$	1,283
Credit quality expense		1			5			(1	)		1			5			(1	)
Operating expense		99	(a)		74			69	(a)		966			916			804
Income (loss) from continuing operations before taxes (FTE)	$	(23	)	$	1		$	193		$	312		$	323		$	480
Return on common equity		N/M			N/M			N/M			20	%		20	%		30	%
Pre-tax operating margin		N/M			N/M			N/M			24	%		26	%		37	%

(a) Includes the items detailed on the supplemental table on page 14.

N/M - Not meaningful.

Page - 8

Mellon Financial Corporation 1Q06 Quarterly Earnings Summary

MELLON ASSET MANAGEMENT

(dollar amounts in millions, unless otherwise noted; presented on an FTE basis)	2005												2006 1st Qtr			1Q06 vs. 1Q05
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Revenue:
Investment management
Mutual funds	$	179		$	187		$	200		$	201		$	194		8	%
Institutional clients		122			129			133			136			158		30
Performance fees		27			26			41			77			58		114
Private clients		20			21			22			23			24		19
Total investment management		348			363			396			437			434		24
Distribution and service		71			74			82			90			98		38
Other fee revenue		16			12			15			11			22		49
Total fee and other revenue		435			449			493			538			554		28
Net interest revenue (expense)		(4	)		(6	)		(6	)		(5	)		(4	)	—
Total revenue		431			443			487			533			550		28
Operating expense		323			336			358			372			390		21
Income from continuing operations before taxes	$	108		$	107		$	129		$	161		$	160		47	%
Market value of assets under management at period-end (in billions)(a)	$	585		$	584		$	609		$	625		$	649		11	%
Assets under management - net inflows (outflows) (in billions):
Long-term	$	5		$	(1	)	$	9		$	6		$	10
Short-term	$	6		$	—		$	4		$	4		$	(3	)
Return on common equity		29	%		29	%		37	%		43	%		44	%
Pre-tax operating margin		25	%		24	%		27	%		30	%		29	%

(a) Excludes amounts subadvised for other sectors of $2 billion, $3 billion, $3 billion, $4 billion and $4 billion.

KEY POINTS

• Strong positive operating leverage (revenue growth of 28% exceeded expense growth of 21%) resulted in 400 bps of margin expansion

• Investment management fees increased 24% reflecting improved equity markets, higher performance fees and net asset inflows

• Performance fees accounted for 36% of the overall increase in investment management fees, driven by an increasing number of mandates with performance fee opportunities as well as continued strong investment performance; of the $31 million increase in performance fees, 55% were from new client mandates

• Net positive AUM inflows of $7 billion in 1Q06 were comprised of $10 billion of long-term inflows partially offset by $3 billion of money market outflows

• Of the $10 billion of long-term net inflows, approximately 40% were non-U.S.

• Distribution and service fees increased 38% reflecting higher market values and higher sales volumes of mutual funds, particularly outside of the U.S. as Mellon Global Investments accounted for approximately 60% of the growth, with the remainder primarily accounted for by Dreyfus

Other Items Impacting Future Quarters

• WestLB Mellon Asset Management joint venture closed April 3, 2006

• EUR38 ($46) billion in assets under management

• Enhances distribution in German and French markets

• Deepens European equity and fixed income product capabilities

• Seasonality of performance fees

• 1Q06 includes several mandates with the opportunity to earn annual performance fees only in the 1^st quarter

Page - 9

Mellon Financial Corporation 1Q06 Quarterly Earnings Summary

PRIVATE WEALTH MANAGEMENT (a)

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2005												2006 1st Qtr			1Q06 vs. 1Q05
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Revenue:
Investment management	$	81		$	80		$	83		$	87		$	90		12	%
Institutional trust and custody		3			2			3			2			3		—
Other fee revenue		5			5			5			6			5		—
Total fee and other revenue		89			87			91			95			98		11
Net interest revenue		80			79			77			76			74		(8	)
Total revenue		169			166			168			171			172		2
Operating expense		91			92			96			100			103		13
Income from continuing operations before taxes	$	78		$	74		$	72		$	71		$	69		(11	)%
Average loans	$	4.5		$	4.6		$	4.7		$	4.6		$	4.6		2	%
Average assets	$	9.4		$	9.5		$	10.1		$	10.9		$	10.3		9	%
Average deposits	$	8.3		$	8.3		$	8.8		$	9.5		$	8.9		6	%
Market value of total client assets at period end (in billions)	$	77		$	78		$	82		$	86		$	89		15	%
Return on common equity		35	%		34	%		34	%		32	%		34	%
Pre-tax operating margin		46	%		45	%		43	%		41	%		40	%

(a) In the first quarter of 2006, the financial results of Mellon 1^st Business Bank, National Association were moved to the Private Wealth Management sector from the Other sector (previously the Treasury Services/Other Activity sector). All prior periods have been restated.

KEY POINTS

• Total fee and other revenue increased 11% driven by net new business, improved equity markets and the City Capital acquisition (December 2005) in Atlanta

• Net interest revenue decreased 8% due principally to narrower spreads earned on deposits as the rates paid to depositors increased faster than the portfolio yields on short-to-medium term investment securities in which the excess deposits were invested

• Negative operating leverage resulted from the decline in net interest revenue and the expense impact of business growth initiatives

• Total client assets increased 15% driven primarily by new Family Office business, new Private Wealth business in the Boston market, as well as the impact of acquisitions

Other Items Impacting Future Quarters

• The acquisition of U.S. Trust Planned Giving Services Group was completed on March 31, 2006 adding approximately $700 million of clients assets and creating the largest planned giving provider in the U.S.

Page - 10

Mellon Financial Corporation 1Q06 Quarterly Earnings Summary

ASSET SERVICING

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2005												2006 1st Qtr			1Q06 vs. 1Q05
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Revenue:
Institutional trust and custody	$	132		$	141		$	154		$	171		$	174		31	%
Securities lending revenue		24			33			25			26			30		27
Other fee revenue		68			67			70			72			83		23
Total fee and other revenue		224			241			249			269			287		28
Net interest revenue		19			21			22			20			26		34
Total revenue		243			262			271			289			313		29
Operating expense		188			200			217			238			245		30
Income from continuing operations before taxes	$	55		$	62		$	54		$	51		$	68		23	%
Average deposits	$	7.0		$	6.9		$	7.8		$	7.1		$	7.1		1	%
Market value of assets under management at period-end (in billions)(a)	$	95		$	104		$	106		$	103		$	104		9	%
Market value of assets under custody or administration at period-end (in billions)	$	3,259		$	3,416		$	3,746		$	3,874		$	4,091		26	%
Return on common equity		30	%		33	%		30	%		27	%		34	%
Pre-tax operating margin		23	%		24	%		20	%		18	%		22	%
MEMO:
Total joint venture revenue (b)	$	93		$	101		$	102		$	107		$	119		28	%

(a) Represents the investment of securities lending cash collateral managed by the Asset Servicing sector.

(b) Mellon’s portion of total joint venture revenue is not included in our reported fee revenue.

KEY POINTS

• Total revenue increased 29% reflecting:

• a 31% increase in institutional trust and custody fees driven by net new business, the 2005 acquisitions of Mellon Analytical Solutions (MAS) and DPM Mellon and improved market conditions

• a 27% increase in securities lending revenue resulting from higher volumes and increased spreads

• Higher foreign exchange fees due to higher client volumes and higher volatility in minor currencies

• Increased expense reimbursements from joint ventures

• a $7 million increase in net interest revenue due to increased spreads and higher U.S. deposit levels

• Excluding the impact of the Mellon Analytical Solutions and DPM Mellon acquisitions, total revenue increased 19%

• Assets under custody or administration increased to a record level of $4.091 trillion

• Net new conversions of $66 billion in first quarter of 2006

• Slightly negative operating leverage as positive operating leverage in our core business was impacted by the MAS and DPM Mellon acquisitions, which accounted for approximately 60% of the increase in expense

• R&M custody survey - #1 rated global custodian among the peer group of large custodians for the fifth consecutive year

Other Items Impacting Future Quarters

• New business wins totaled a record $226 billion in the first quarter of 2006 (over 75% of which represented new clients and came from outside the U.S.) - includes ABN AMRO Mellon’s mandate for DEPFA Bank (EUR115 ($139) billion assets under custody), expected to be converted in 3Q06

Page - 11

Mellon Financial Corporation 1Q06 Quarterly Earnings Summary

PAYMENT SOLUTIONS & INVESTOR SERVICES

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2005												2006 1st Qtr			1Q06 vs. 1Q05
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Revenue:
Payment solutions & investor services	$	134		$	142		$	122		$	126		$	121		(10	)%
Other fee revenue		8			6			5			7			5		N/M
Total fee and other revenue		142			148			127			133			126		(12	)
Net interest revenue		37			33			34			38			41		12
Total revenue		179			181			161			171			167		(7	)
Operating expense		133			135			127			132			129		(3	)
Income from continuing operations before taxes	$	46		$	46		$	34		$	39		$	38		(16	)%
Average deposits	$	7.1		$	6.4		$	6.2		$	6.6		$	6.8		(4	)%
Return on common equity		38	%		38	%		30	%		31	%		39	%
Pre-tax operating margin		26	%		25	%		21	%		23	%		23	%

N/M - Not meaningful.

KEY POINTS

• Payment solutions & investor services fees decreased 10% reflecting lower ancillary services revenue at Mellon Investor Services, lower Global Cash Management processing volumes and higher credits for compensating balances in lieu of paying fees (recorded in net interest revenue)

• Net interest revenue increased 12% reflecting the impact of higher compensating balances as well as increased spreads on Mellon Investor Services and Global Cash Management noninterest-bearing customer deposits reflecting the higher interest rates at which excess deposits were invested

• Lower staff costs on lower processing volumes, offset by the decline in revenue, resulting in a lower pre-tax margin and negative operating leverage

Page - 12

Mellon Financial Corporation 1Q06 Quarterly Earnings Summary

OTHER

Other - income from continuing operations before taxes (FTE)

(in millions)	2005											2006 1st Qtr
	1st Qtr		2nd Qtr			3rd Qtr			4th Qtr
Corporate lending	$	3	$	4		$	4		$	6		$	4
Venture capital		6		5			10			7			9
Business exits		4		22			(5	)		(1	)		12
Corporate activity/other		180		(6	)		(11	)		(11	)		(48	)
Total	$	193	$	25		$	(2	)	$	1		$	(23	)

• In the first quarter of 2006, Mellon recorded a pre-tax charge of $19 million, or $.03 per share, in connection with payments, awards and benefits payable to its former chairman and chief executive officer, pursuant to his employment agreement

• 1Q06 expenses included severance expense of $3 million, including severance related to the sale of the large corporate real estate loan portfolio, discussed below

• Venture capital net gains totaled $17 million in 1Q06 compared with $15 million in 4Q05 and $16 million in 1Q05

• The sale of the large corporate real estate loan portfolio was completed in 1Q06 at a gain of $7 million (reported in financing-related revenue), partially offset by severance and other expenses of $2 million, for a net gain of $5 million. Potential additional gain of up to $3 million may be recorded in 2Q06, following a 90 day customer retention determination period

DISCONTINUED OPERATIONS

On March 16, 2005, we announced the signing of a definitive agreement to sell our human resources (HR) consulting practices, benefits administration and business process outsourcing businesses to ACS. The sale closed on May 26, 2005. In the first quarter of 2005, we applied discontinued operations accounting to these businesses that were included in the former Human Resources & Investor Solutions sector. The $5 million after-tax net gain on disposals recorded in the first quarter of 2006 primarily resulted from the recognition of a tax benefit on the sale of a foreign HR business subsidiary not included in the ACS transaction. All information in this earnings release reflects continuing operations, unless otherwise noted.

Page - 13

Mellon Financial Corporation 1Q06 Quarterly Earnings Summary

Supplemental Information - Reconciliation of Reported GAAP Amounts to Adjusted Non-GAAP Amounts

Reported Amounts are presented in accordance with GAAP. We believe that this supplemental adjusted non-GAAP information is useful to the investment community in analyzing the financial results and trends of ongoing operations. We believe it facilitates comparisons with prior periods and reflects the principal basis on which our management monitors financial performance. See the table below for a reconciliation of first quarter 2006 and 2005 Reported Amounts presented in accordance with GAAP to Adjusted non-GAAP Amounts, which exclude these items. We do not believe any adjustments to Reported Amounts for the fourth quarter of 2005 are necessary to facilitate comparisons with the first quarter of 2006. We have made no adjustments to fourth quarter 2005 Reported Amounts for the purpose of our internal assessment of quarterly financial performance.

Supplemental information

(dollar amounts in millions)	First Quarter 2006									First Quarter 2005									Adjusted Amounts (non-GAAP) % Change
	Reported Amounts (GAAP)			Adjustments			Adjusted Amounts (non- GAAP)			Reported Amounts (GAAP)			Adjustments			Adjusted Amounts (non- GAAP)
Noninterest revenue:
Fee and other revenue	$	1,140		$	—		$	1,140		$	1,152		$	(197	)(b)	$	955
Gains on sales of securities		—			—			—			—			—			—
Total noninterest revenue		1,140			—			1,140			1,152			(197	)		955		19	%
Net interest revenue		126			—			126			117			—			117		7	%
Total revenue		1,266			—			1,266			1,269			(197	)		1,072		18	%
Provision for credit losses		1			—			1			(1	)		—			(1	)
Operating expense:
Staff:
Compensation		272			(2	)(a)		270			247			—			247
Incentives		171			(16	)(a)		155			108			—			108
Employee benefits		76			(1	)(a)		75			66			—			66
Total staff		519			(19	)		500			421			—			421
Net occupancy		59			—			59			59			(2	)(c)		57
Other		388			—			388			324			(13	)(d)		311
Total operating expense		966			(19	)		947			804			(15	)		789		20	%
Income from continuing operations before taxes	$	299		$	19		$	318		$	466		$	(182	)	$	284		12	%
Memo - Fully taxable equivalent basis:
Total noninterest revenue	$	1,149		$	—		$	1,149		$	1,162		$	(197	)	$	965		19	%
Net interest revenue		130			—			130			121			—			121		7	%
Total revenue	$	1,279		$	—		$	1,279		$	1,283		$	(197	)	$	1,086		18	%
Income from continuing operations before taxes	$	312		$	19		$	331		$	480		$	(182	)	$	298		11	%
Pre-tax operating margin (e)		24	%					26	%		37	%					27	%
Fee and other revenue as a percentage of total revenue		90	%					90	%		91	%					89	%

(a) Reflects the charge recorded in connection with payments, awards and benefits payable to Mellon’s former chairman and chief executive officer, pursuant to his employment agreement.

(b) Reflects the gain from the sale of our remaining investment in Shinsei Bank.

(c) Reflects an additional charge associated with the move to the new Mellon Financial Centre in London.

(d) Includes the $10 million charge associated with the early extinguishment of debt and a $3 million additional writedown of a business previously identified as held for sale.

(e) Income from continuing operations before taxes as a percentage of total revenue.

Page - 14

EX-99.2

Exhibit 99.2

Quarterly Earnings Summary

APPENDIX

Financial Trends

Table of Contents

Notes to Financial Trends	1
Consolidated Results	2
Noninterest Revenue	3
Net Interest Revenue	4
Operating Expense	5
Assets Under Management / Administration / Custody	6
Assets Under Management Net Flows	7
Mellon Asset Management	8
Private Wealth Management	9
Asset Servicing	10
Payment Solutions & Investor Services	11
Other	12
Annual Business Sector Trends 2003-2005	13
Nonperforming Assets	15
Provision and Reserve for Credit Exposure	16

MELLON FINANCIAL CORPORATION

Notes to Financial Trends

Notes:

During the first quarter of 2006 we moved the financial results of Mellon 1st Business Bank, National Association (N.A.), to the Private Wealth Management sector from the Other sector (previously the Treasury Services/Other Activity sector). This change reflects the similar nature of products and clients of Mellon 1st Business Bank with other reporting units in the Private Wealth Management sector, as well as our organizational structure, as the management of Mellon 1st Business Bank reports to the head of Private Wealth Management. Historical sector results for Private Wealth Management and Other have been restated

In the first quarter of 2006, certain Other fee revenue was reclassified to Transfer revenue to reflect all revenue transferred between sectors. All prior periods have been restated to reflect this change.

Prior period sector data may reflect immaterial reclassifications resulting from minor changes made to be consistent with current period presentation.

Summations may not equal due to rounding. As a result of this rounding convention, there may exist immaterial differences between the sector trends data versus the sector trends data subsequently filed on Form 10-Q.

Discontinued Operations Accounting/Accounting Change(s) -

The income/(loss) from discontinued operations accounting and the cumulative effect of accounting change(s) has not been allocated to any sector.

Average Assets -

Where average deposits in a business sector are greater than average loans, average assets include an allocation of investment securities equal to the difference.

Return on Common Equity/Pretax Operating Margin -

Ratios are presented on a continuing operations basis. Quarterly return on common equity ratios are annualized.

Page 1

MELLON FINANCIAL CORPORATION

CONSOLIDATED RESULTS - 9 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2004												2005												2006
	1st Qtr (a)			2nd Qtr (b)			3rd Qtr			4th Qtr (c)			1st Qtr (d)			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr (e)
Revenue:
Investment management		405			386			379			455			429			443			479			524			524
Distribution and service		66			67			68			68			71			74			82			90			98
Institutional trust and custody		138			137			132			145			150			160			172			188			194
Securities lending revenue		18			24			16			18			24			33			25			26			30
Payment solutions & investor services		145			149			133			138			134			142			122			126			121
Other fee revenue		240			152			147			168			354			158			167			164			182
Total fee and other revenue		1,012			915			875			992			1,162			1,010			1,047			1,118			1,149
Net interest revenue		120			126			116			121			121			133			123			126			130
Total revenue		1,132			1,041			991			1,113			1,283			1,143			1,170			1,244			1,279
Credit quality expense		(7	)		—			—			(4	)		(1	)		3			12			5			1
Operating expense		758			762			725			815			804			826			871			916			966
Income from continuing operations before income taxes (benefits)		381			279			266			302			480			314			287			323			312
Income taxes (benefits)		134			99			85			103			175			111			91			115			110
Income from continuing operations		247			180			181			199			305			203			196			208			202
Income from discontinued operations after-tax		(2	)		(4	)		2			(7	)		(50	)		(78	)		(2	)		—			5
Net income (loss)	$	245		$	176		$	183		$	192		$	255		$	125		$	194		$	208		$	207
EPS from Continuing Operations	$	0.58		$	0.42		$	0.43		$	0.47		$	0.72		$	0.49		$	0.47		$	0.50		$	0.49
Average loans	$	7.5		$	7.5		$	7.0		$	7.2		$	6.9		$	7.4		$	7.4		$	7.1		$	6.8
Average assets (f)	$	33.2		$	33.4		$	33.4		$	36.0		$	36.9		$	36.4		$	37.9		$	38.0		$	37.5
Average deposits	$	19.2		$	19.8		$	20.3		$	22.0		$	23.0		$	22.3		$	23.6		$	23.9		$	23.6
Average common equity	$	3.8		$	3.8		$	3.8		$	4.0		$	4.2		$	4.1		$	4.1		$	4.2		$	4.2
Average Tier I preferred equity	$	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)	$	679		$	679		$	670		$	707		$	729		$	738		$	766		$	781		$	808
Market value of assets under administration or custody at period end (in billions)	$	2,824		$	2,856		$	2,978		$	3,233		$	3,293		$	3,450		$	3,777		$	3,908		$	4,125
Return on common equity		26	%		19	%		19	%		20	%		30	%		20	%		19	%		20	%		20	%
Pretax operating margin		34	%		27	%		27	%		27	%		37	%		27	%		24	%		26	%		24	%

(a) The first quarter of 2004 includes a pre-tax gain of $93 million from the sale of approximately 35% of the Corporation’s 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 two small non-strategic businesses, one of which was sold in the third quarter of 2004.

(b) The second quarter of 2004 includes a $24 million pre-tax charge relating to vacating 10 leased locations in London and moving into the new Mellon Financial Centre in London.

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

(d) The first quarter of 2005 includes a pre-tax gain of $197 million from the sale of our remaining investment in Shinsei Bank, a $10 million pre-tax charge (included in other expense) for the early extinguishment of debt and $5 million of additional expense ($2 million of occupancy expense and $3 million of other expenses) related to charges recorded in 2004 for the move to the new Mellon Financial Centre in London and a writedown of the remaining small non-strategic businesses previously identified as held for sale (see footnote above).

(e) The first quarter of 2006 includes a $19 million pre-tax charge in connection with payments, awards and benefits payable to Mellon’s former chairman and chief executive officer, pursuant to his employment agreement.

(f) Consolidated average assets include average assets of discontinued operations of $.6 million for the first, second, third and fourth quarters of 2004, $.6 million for the first quarter, $.2 million for the second quarter, $0 million for the third and fourth quarters of 2005, $0 million for the first quarter of 2006.

Page 2

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 9 Quarter Trend

NONINTEREST REVENUE

(dollar amounts in millions unless otherwise noted)	2004												2005												2006
	1st Qtr (a)			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr (a)			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Investment management	$	405		$	386		$	379		$	455		$	429		$	443		$	479		$	524		$	524
Distribution and service		66			67			68			68			71			74			82			90			98
Institutional trust & custody		156			161			148			163			174			193			197			214			224
Payment solutions & investor services		145			149			133			138			134			142			122			126			121
Foreign exchange trading		57			50			38			41			54			50			52			46			58
Financing-related and Equity Investment		133			40			55			69			251			50			51			49			54
Other		39			44			43			48			39			46			55			58			61
Total fee and other revenue		1,001			897			864			982			1,152			998			1,038			1,107			1,140
Gains on the sales of securities		—			8			—			—			—			—			1			—			—
Total noninterest revenue (non-FTE)	$	1,001		$	905		$	864		$	982		$	1,152		$	998		$	1,039		$	1,107		$	1,140
FTE impact		11			10			11			10			10			12			8			11			9
Total noninterest revenue (FTE)	$	1,012		$	915		$	875		$	992		$	1,162		$	1,010		$	1,047		$	1,118		$	1,149
MEMO:
Performance fees		39			17			11			60			27			26			41			77			58
Fee and other revenue as a percentage of fee and net interest revenue (FTE) (a)		89	%		88	%		88	%		89	%		91	%		88	%		90	%		90	%		90	%
Market value of assets under management at period end (in billions)	$	679		$	679		$	670		$	707		$	729		$	738		$	766		$	781		$	808
Market value of assets under administration or custody at period end (in billions)	$	2,824		$	2,856		$	2,978		$	3,233		$	3,293		$	3,450		$	3,777		$	3,908		$	4,125
S&P 500 Index - period end		1126			1141			1115			1212			1181			1191			1229			1248			1295
S&P 500 Index - daily average		1133			1123			1104			1163			1192			1182			1224			1231			1284

(a) The first quarter of 2004 and 2005 includes gains from the sale of the Corporation’s investment in Shinsei Bank of $93 million and $197 million, respectively.

Excluding these gains, fee and other revenue as a percentage of fee and net interest revenue (FTE) would have totaled 89% in the first quarter of 2005 and 88% in the first quarter of 2004.

Page 3

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 9 Quarter Trend

NET INTEREST REVENUE

(dollar amounts in millions unless otherwise noted)	2004												2005												2006
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Net Interest Revenue (FTE)	$	120		$	126		$	116		$	121		$	121		$	133		$	123		$	126		$	130
Net Interest Margin (FTE)		2.16	%		2.24	%		2.03	%		1.93	%		1.92	%		2.07	%		1.84	%		1.85	%		1.95	%
Selected Average Balances:
Money Market Investments	$	2,986		$	2,703		$	3,310		$	4,157		$	4,252		$	3,307		$	2,713		$	2,825		$	2,330
Trading Account Securities		356			268			229			248			308			293			309			283			309
Securities		11,013			11,647			11,780			12,743			13,714			14,444			15,967			16,823			17,503
Loans		7,489			7,491			7,047			7,205			6,882			7,339			7,421			7,133			6,758
Interest-earning Assets		21,844			22,109			22,366			24,353			25,156			25,383			26,410			27,064			26,900
Interest-bearing Deposits		12,566			12,806			13,323			14,765			15,913			15,302			16,155			16,013			15,295
Noninterest-bearing Deposits		6,661			6,970			6,972			7,318			7,122			7,020			7,411			7,892			8,274

Page 4

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 9 Quarter Trend

OPERATING EXPENSE

(dollar amounts in millions unless otherwise noted)	2004								2005								2006
	1st Qtr (b)		2nd Qtr (c)		3rd Qtr		4th Qtr (d)		1st Qtr (e)		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr (f)
Staff:
Compensation	$	233	$	235	$	241	$	263	$	247	$	250	$	258	$	264	$	272
Incentive (a)		100		89		84		120		108		114		127		134		171
Employee benefits		55		53		51		51		66		63		67		66		76
Total staff		388		377		376		434		421		427		452		464		519
Professional, legal and other purchased services		88		99		91		108		100		110		114		123		115
Distribution and servicing		79		79		81		80		81		90		100		106		115
Net occupancy		56		79		57		43		59		57		61		59		59
Equipment		44		42		41		42		41		44		44		47		44
Business development		21		22		21		23		21		23		23		28		26
Communications		22		22		18		22		25		19		19		21		24
Amortization of intangible assets		4		5		4		6		6		7		6		8		7
Other		56		37		36		57		50		49		52		60		57
Total operating expense	$	758	$	762	$	725	$	815	$	804	$	826	$	871	$	916	$	966

(a) Effective Jan. 1, 2003, Mellon began recording an expense for the estimated fair value of stock options using the prospective method under transitional guidance provided in the Statement of Financial Accounting Standards (SFAS) No. 148, “Accounting for Stock-Based Compensation - Transition and Disclosure.” Stock option expense totaled approximately $4 million for each of the quarters for 2004. It totaled $6 million, $6 million, $7 million and $6 million for each of the quarters of 2005. It totaled $11 million for first quarter in 2006, including $3 million to Mellon’s former chairman and chief executive officer, pursuant to his employment agreement.

(b) The first quarter of 2004 includes a pre-tax charge of $19 million associated with a writedown of two small non-strategic businesses held for sale, one of which was sold in the third quarter of 2004.

(c) The second quarter of 2004 includes a $24 million pre-tax charge ($23 million - occupancy, $1 million - other) relating to vacating 10 leased locations in London and moving into the new Mellon Financial Centre in London.

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

(e) The first quarter of 2005 includes a $10 million pre-tax charge (included in other expense) for the early extinguishment of debt and $5 million of additional expense ($2 million of occupancy expense and $3 million of other expenses) related to charges recorded in 2004 for the move to the new Mellon Financial Centre in London and a writedown of the remaining small non-strategic businesses previously identified as held for sale (see footnote above).

(f) The first quarter of 2006 includes a $19 million pre-tax charge in connection with payments, awards and benefits payable to Mellon’s former chairman and chief executive officer, pursuant to his employment agreement.

Page 5

MELLON FINANCIAL CORPORATION

ASSETS UNDER MANAGEMENT/ ADMINISTRATION OR CUSTODY - 9 Quarter Trend

(dollar amounts in billions unless otherwise noted)	2004												2005												2006
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Market value of assets under management at period end
Institutional	$	421		$	421		$	419		$	443		$	463		$	469		$	490		$	501		$	527
Mutual Funds		200			199			191			200			203			205			212			216			214
Private Client		58			59			60			64			63			64			64			64			67
Total market value of assets under management		679			679			670			707			729			738			766			781			808
Composition of assets under management at period end
Equity Funds		36	%		36	%		37	%		39	%		37	%		37	%		37	%		37	%		37	%
Fixed Income Funds		20	%		21	%		20	%		20	%		20	%		19	%		18	%		18	%		19	%
Money Market Funds		24	%		22	%		21	%		21	%		19	%		20	%		20	%		20	%		19	%
Securities lending cash collateral		11	%		12	%		13	%		12	%		15	%		16	%		16	%		15	%		15	%
Overlay and alternative investments		9	%		9	%		9	%		8	%		9	%		8	%		9	%		10	%		10	%
Total		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%
Managed mutual funds fee revenue (millions)
Equity Funds	$	72		$	78		$	77		$	87		$	85		$	87		$	93		$	93		$	93
Money Market Funds		58			58			56			51			49			54			58			58			58
Fixed Income Funds		34			32			32			31			30			31			30			31			29
Nonproprietary		12			11			13			14			15			16			19			19			14
Total managed mutual funds fee revenue		176			179			178			183			179			188			200			201			194
Average assets of proprietary mutual funds
Equity Funds	$	48		$	51		$	50		$	53		$	54		$	54		$	57		$	57		$	59
Money Market Funds		96			96			91			87			85			90			96			100			99
Fixed Income Funds		25			23			23			22			22			22			21			21			21
Total average assets of proprietary mutual funds		169			170			164			162			161			166			174			178			179
Market value of assets under administration or custody at period end (a)	$	2,824		$	2,856		$	2,978		$	3,233		$	3,293		$	3,450		$	3,777		$	3,908		$	4,125
Total Assets
Managed	$	679		$	679		$	670		$	707		$	729		$	738		$	766		$	781		$	808
Administration/Custody (a)		2,824			2,856			2,978			3,233			3,293			3,450			3,777			3,908			4,125
Total	$	3,503		$	3,535		$	3,648		$	3,940		$	4,022		$	4,188		$	4,543		$	4,689		$	4,933

(a) Excludes assets of $310 billion at June 30, 2005, $328 billion at Sept. 30, 2005, $333 billion at Dec. 31, 2005, and $359 billion at March 31, 2006, that we manage and are also under administration or custody.

These assets are included in assets under management.

Page 6

MELLON FINANCIAL CORPORATION

ASSETS UNDER MANAGEMENT NET FLOWS - 9 Quarter Trend

(dollar amounts in billions )	2004												2005										2006
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr		4th Qtr		1st Qtr
Market value of assets under management at beginning of period	$	657		$	679		$	679		$	670		$	707		$	729		$	738	$	766	$	781
Net Flows
Long-term		6			—			2			8			5			(1	)		9		7		11
Money market/securities lending		15			(2	)		(14	)		(2	)		27			9			6		1		(2	)
Total net inflows		21			(2	)		(12	)		6			32			8			15		8		9
Net Market appreciation		7			—			(3	)		30			(10	)		1			13		6		18
Acquisitions		(6	)		2			6			1			—			—			—		1		—
Market value of assets under management at end of period	$	679		$	679		$	670		$	707		$	729		$	738		$	766	$	781	$	808

Page 7

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

MELLON ASSET MANAGEMENT - 9 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2004												2005												2006
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Revenue:
Investment management
Mutual funds		176			179			177			183			179			187			200			201			194
Institutional clients		99			97			98			115			122			129			133			136			158
Performance fees		39			17			11			60			27			26			41			77			58
Private clients		17			18			19			20			20			21			22			23			24
Total investment management		331			311			305			378			348			363			396			437			434
Distribution and service		66			67			68			68			71			74			82			90			98
Institutional trust and custody		13			14			14			14			13			13			14			13			13
Transfer revenue		(2	)		(2	)		(2	)		(1	)		1			—			2			(7	)		(1	)
Other fee revenue		5			(1	)		(1	)		6			2			(1	)		(1	)		5			10
Total fee and other revenue		413			389			384			465			435			449			493			538			554
Net interest revenue (expense)		(5	)		(6	)		(6	)		(5	)		(4	)		(6	)		(6	)		(5	)		(4	)
Total revenue		408			383			378			460			431			443			487			533			550
Credit quality expense		—			—			—			—			—			—			—			—			—
Operating expense		294			286			287			349			323			336			358			372			390
Income from continuing operations before taxes (benefits)		114			97			91			111			108			107			129			161			160
Income taxes (benefits)		40			35			29			38			39			38			41			57			52
Income from continuing operations		74			62			62			73			69			69			88			104			108
Income from discontinued operations after-tax		—			—			—			—			—			—			—			—			—
Net income (loss)	$	74		$	62		$	62		$	73		$	69		$	69		$	88		$	104		$	108
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets	$	1.9		$	2.0		$	2.1		$	2.2		$	1.9		$	1.9		$	1.9		$	1.9		$	2.0
Average deposits	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average common equity	$	0.8		$	0.8		$	0.8		$	0.8		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0
Average Tier I preferred equity	$	0.4		$	0.4		$	0.4		$	0.5		$	0.5		$	0.5		$	0.5		$	0.5		$	0.4
Market value of assets under management at period end (in billions) (a)	$	568		$	565		$	550		$	585		$	587		$	587		$	612		$	629		$	653
Market value of assets under administration or custody at period end (in billions)	$	7		$	6		$	8		$	8		$	9		$	8		$	3		$	3		$	3
Return on common equity		38	%		33	%		31	%		34	%		29	%		29	%		37	%		43	%		44	%
Pretax operating margin		28	%		25	%		24	%		24	%		25	%		24	%		27	%		30	%		29	%

(a) Includes amounts subadvised by/for other sectors.

Page 8

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

PRIVATE WEALTH MANAGEMENT - 9 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2004												2005												2006
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Revenue:
Investment management		74			75			74			77			81			80			83			87			90
Institutional trust and custody		2			2			3			2			3			2			3			2			3
Transfer revenue		1			1			1			(1	)		—			—			—			—			—
Other fee revenue		6			5			3			6			5			5			5			6			5
Total fee and other revenue		83			83			81			84			89			87			91			95			98
Net interest revenue (expense)		75			77			76			74			80			79			77			76			74
Total revenue		158			160			157			158			169			166			168			171			172
Credit quality expense		—			—			—			1			—			—			—			—			—
Operating expense		86			88			88			93			91			92			96			100			103
Income from continuing operations before taxes (benefits)		72			72			69			64			78			74			72			71			69
Income taxes (benefits)		25			26			22			21			28			26			23			26			22
Income (loss) from continuing operations		47			46			47			43			50			48			49			45			47
Income from discontinued operations after-tax		—			—			—			—			—			—			—			—			—
Net income (loss)	$	47		$	46		$	47		$	43		$	50		$	48		$	49		$	45		$	47
Average loans	$	4.2		$	4.3		$	4.4		$	4.5		$	4.5		$	4.6		$	4.7		$	4.6		$	4.6
Average assets	$	8.4		$	8.8		$	9.1		$	9.2		$	9.4		$	9.5		$	10.1		$	10.9		$	10.3
Average deposits	$	7.2		$	7.6		$	7.8		$	8.0		$	8.3		$	8.3		$	8.8		$	9.5		$	8.9
Average common equity	$	0.7		$	0.7		$	0.7		$	0.7		$	0.6		$	0.6		$	0.6		$	0.6		$	0.5
Average Tier I preferred equity	$	0.2		$	0.2		$	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)(a)	$	76		$	76		$	76		$	78		$	77		$	78		$	82		$	86		$	89
Return on common equity		27	%		27	%		27	%		24	%		35	%		34	%		34	%		32	%		34	%
Pretax operating margin		46	%		45	%		44	%		41	%		46	%		45	%		43	%		41	%		40	%

(a) Includes assets under management, before amounts subadvised by/for other sectors, of $47 billion, $46 billion, $47 billion and $50 billion in the first, second, third and fourth quarters, respectively, of 2004, $49 billion, $50 billion, $51 billion and $53 billion in the first, second, third and fourth quarters, respectively, of 2005, $55 billion in the first quarter of 2006.

Note: In the first quarter of 2006, the financial results of Mellon 1st Business Bank, N.A. were moved to the Private Wealth Management sector from the Other sector.

All prior periods have been restated.

Page 9

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

ASSET SERVICING - 9 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2004												2005												2006
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Revenue:
Institutional trust and custody		120			118			113			127			132			141			154			171			174
Securities lending revenue		18			24			16			18			24			33			25			26			30
Transfer revenue		(2	)		(3	)		(3	)		(1	)		(7	)		(3	)		(5	)		5			(1	)
Other fee revenue		75			70			56			60			75			70			75			67			84
Total fee and other revenue		211			209			182			204			224			241			249			269			287
Net interest revenue (expense)		14			18			17			20			19			21			22			20			26
Total revenue		225			227			199			224			243			262			271			289			313
Credit quality expense		—			—			—			—			—			—			—			—			—
Operating expense		174			170			168			184			188			200			217			238			245
Income from continuing operations before taxes (benefits)		51			57			31			40			55			62			54			51			68
Income taxes (benefits)		18			20			10			14			20			22			17			18			22
Income (loss) from continuing operations		33			37			21			26			35			40			37			33			46
Income from discontinued operations after-tax		—			—			—			—			—			—			—			—			—
Net income (loss)	$	33		$	37		$	21		$	26		$	35		$	40		$	37		$	33		$	46
Average loans	$	0.1		$	0.1		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets	$	7.1		$	6.8		$	7.0		$	8.0		$	8.2		$	8.1		$	9.0		$	8.5		$	8.4
Average deposits	$	5.5		$	5.4		$	5.8		$	6.5		$	7.0		$	6.9		$	7.8		$	7.1		$	7.1
Average common equity	$	0.6		$	0.6		$	0.5		$	0.6		$	0.5		$	0.5		$	0.5		$	0.5		$	0.6
Average Tier I preferred equity	$	0.1		$	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)(a)	$	64		$	68		$	73		$	74		$	95		$	104		$	106		$	103		$	104
Market value of assets under administration or custody at period end (in billions) (b)	$	2,793		$	2,826		$	2,946		$	3,199		$	3,259		$	3,416		$	3,746		$	3,874		$	4,091
Return on common equity		22	%		25	%		14	%		17	%		30	%		33	%		30	%		27	%		34	%
Pretax operating margin		23	%		25	%		15	%		18	%		23	%		24	%		20	%		18	%		22	%
MEMO:
Total joint venture revenue (c)	$	81		$	82		$	74		$	84		$	93		$	101		$	102		$	107		$	119
Securities on Loan (d)	$	100		$	95		$	100		$	115		$	150		$	160		$	165		$	161		$	178

(a) Represents the investment of securities lending cash collateral managed by the Asset Servicing Sector.

(b) Excludes assets of $310 billion at June 30, 2005, $328 billion at Sept. 30, 2005, $333 billion at Dec. 31, 2005 and $359 billion at Mar. 31, 2006 that we manage and are also under administration or custody. These assets are included in assets under management in the Asset Management sectors.

(c) Restated to reflect the acquisition of Russell Mellon, previously included as a Joint Venture.

(d) Represents the total dollar amount of securities on loan, both cash and non-cash, at period end by the Corporation, affiliates and a joint venture.

Page 10

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

PAYMENT SOLUTIONS & INVESTOR SERVICES - 9 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2004												2005												2006
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Revenue:
Payment solutions & investor services		145			149			133			138			134			142			122			126			121
Transfer revenue		4			5			5			6			8			6			6			4			4
Other fee revenue		(1	)		—			—			(1	)		—			—			(1	)		3			1
Total fee and other revenue		148			154			138			143			142			148			127			133			126
Net interest revenue (expense)		31			30			29			33			37			33			34			38			41
Total revenue		179			184			167			176			179			181			161			171			167
Credit quality expense		—			—			—			—			—			—			—			—			—
Operating expense		125			130			120			134			133			135			127			132			129
Income from continuing operations before taxes (benefits)		54			54			47			42			46			46			34			39			38
Income taxes (benefits)		19			19			15			14			17			16			11			14			12
Income (loss) from continuing operations		35			35			32			28			29			30			23			25			26
Income from discontinued operations after-tax		—			—			—			—			—			—			—			—			—
Net income (loss)	$	35		$	35		$	32		$	28		$	29		$	30		$	23		$	25		$	26
Average loans	$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1
Average assets	$	6.6		$	6.9		$	7.0		$	7.7		$	7.8		$	7.2		$	7.0		$	7.2		$	7.3
Average deposits	$	5.9		$	6.2		$	6.2		$	7.0		$	7.1		$	6.4		$	6.2		$	6.6		$	6.8
Average common equity	$	0.3		$	0.3		$	0.3		$	0.3		$	0.3		$	0.3		$	0.3		$	0.3		$	0.3
Average Tier I preferred equity	$	0.1		$	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		46	%		48	%		45	%		37	%		38	%		38	%		30	%		31	%		39	%
Pretax operating margin		30	%		29	%		29	%		24	%		26	%		25	%		21	%		23	%		23	%

Page 11

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

OTHER - 9 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2004												2005												2006
	1st Qtr (a)			2nd Qtr (b)			3rd Qtr			4th Qtr (c)			1st Qtr (d)			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr (e)
Revenue:
Institutional trust and custody		3			3			2			2			2			4			1			2			4
Transfer revenue		(1	)		(1	)		(1	)		(3	)		(2	)		(3	)		(3	)		(2	)		(2	)
Other fee revenue		155			78			89			97			272			84			89			83			82
Total fee and other revenue		157			80			90			96			272			85			87			83			84
Net interest revenue (expense)		5			7			—			(1	)		(11	)		6			(4	)		(3	)		(7	)
Total revenue		162			87			90			95			261			91			83			80			77
Credit quality expense		(7	)		—			—			(5	)		(1	)		3			12			5			1
Operating expense		79			88			62			55			69			63			73			74			99
Income from continuing operations before taxes (benefits)		90			(1	)		28			45			193			25			(2	)		1			(23	)
Income taxes (benefits)		32			(1	)		9			16			71			9			(1	)		—			2
Income (loss) from continuing operations		58			—			19			29			122			16			(1	)		1			(25	)
Income from discontinued operations after-tax		—			—			—			—			—			—			—			—			—
Net income (loss)	$	58		$	—		$	19		$	29		$	122		$	16		$	(1	)	$	1		$	(25	)
Average loans	$	3.1		$	3.0		$	2.5		$	2.6		$	2.3		$	2.7		$	2.6		$	2.4		$	2.1
Average assets	$	8.6		$	8.3		$	7.6		$	8.3		$	9.0		$	9.5		$	9.9		$	9.5		$	9.5
Average deposits	$	0.6		$	0.6		$	0.5		$	0.5		$	0.6		$	0.7		$	0.8		$	0.7		$	0.8
Average common equity	$	1.4		$	1.4		$	1.5		$	1.6		$	1.8		$	1.7		$	1.7		$	1.8		$	1.8
Average Tier I preferred equity	$	0.2		$	0.2		$	0.2		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	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)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Return on common equity		n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m
Pretax operating margin		n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m

(a) The first quarter of 2004 includes a pre-tax gain of $93 million from the sale of approximately 35% of the Corporation’s 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 two small non-strategic businesses, one of which was sold in the third quarter of 2004.

(b) The second quarter of 2004 includes a $24 million pre-tax charge relating to vacating 10 leased locations in London and moving into the new Mellon Financial Centre in London.

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

(d) The first quarter of 2005 includes a pre-tax gain of $197 million from the sale of our remaining investment in Shinsei Bank, a $10 million pre-tax charge (included in other expense) for the early extinguishment of debt and $5 million of additional expense ($2 million of occupancy expense and $3 million of other expenses) related to charges recorded in 2004 for the move to the new Mellon Financial Centre in London and a writedown of the remaining small non-strategic businesses previously identified as held for sale (see footnote above).

(e) The first quarter of 2006 includes a $19 million pre-tax charge in connection with payments, awards and benefits payable to Mellon’s former chairman and chief executive officer, pursuant to his employment agreement.

n/m - not meaningful

Note: In the first quarter of 2006, the financial results of Mellon 1st Business Bank, N.A. were moved to the Private Wealth Management sector from the Other sector.

All prior periods have been restated.

Page 12

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

(dollar amounts in millions, averages in billions; presented on an FTE basis)	Mellon Asset Management									Private Wealth Management									Asset Servicing
	2005			2004			2003			2005			2004			2003			2005			2004			2003
Revenue:
Investment management (a)		1,544			1,325			1,134			331			300			275			—			—			—
Distribution and service fees		317			269			240			—			—			—			—			—			—
Institutional trust and custody		53			55			58			10			9			9			598			478			422
Securities lending revenue		—			—			—			—			—			—			108			76			69
Payment solutions & investor services		—			—			—			—			—			—			—			—			—
Transfer revenue		(4	)		(7	)		(18	)		—			2			10			(10	)		(9	)		(6	)
Other fee revenue		5			9			6			21			20			20			287			261			226
Total fee and other revenue		1,915			1,651			1,420			362			331			314			983			806			711
Net interest revenue (expense)		(21	)		(22	)		(22	)		312			302			326			82			69			82
Total revenue		1,894			1,629			1,398			674			633			640			1,065			875			793
Credit quality expense		—			—			—			—			1			2			—			—			—
Total operating expense		1,389			1,216			1,090			379			355			332			843			696			638
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		505			413			308			295			277			306			222			179			155
Income taxes (benefits)		175			142			108			103			94			107			77			62			55
Income (loss) from continuing operations before cumulative effect of accounting change		330			271			200			192			183			199			145			117			100
Cumulative effect of accounting change		—			—			—			—			—			—			—			—			—
Income from continuing operations		330			271			200			192			183			199			145			117			100
Income from discontinued operations after-tax		—			—			—			—			—			—			—			—			—
Net income (loss)	$	330		$	271		$	200		$	192		$	183		$	199		$	145		$	117		$	100
Average loans	$	—		$	—		$	—		$	4.6		$	4.3		$	3.8		$	—		$	0.1		$	—
Average assets	$	2.0		$	2.0		$	2.0		$	10.0		$	8.9		$	9.6		$	8.5		$	7.2		$	5.9
Average deposits	$	—		$	—		$	—		$	8.8		$	7.6		$	6.6		$	7.2		$	5.8		$	4.2
Average common equity	$	1.0		$	0.8		$	0.7		$	0.6		$	0.7		$	0.6		$	0.5		$	0.6		$	0.6
Average Tier I preferred equity	$	0.5		$	0.4		$	0.4		$	0.2		$	0.2		$	0.2		$	0.1		$	0.1		$	0.1
Market value of assets under management at period end (in billions)	$	629		$	585		$	554		$	49		$	48		$	48		$	103		$	74		$	55
Market value of assets under administration or custody at period end (in billions)	$	3		$	8		$	10		$	31		$	26		$	23		$	3,874		$	3,199		$	2,688
Return on common equity		34	%		34	%		28	%		34	%		26	%		32	%		30	%		20	%		18	%
Pretax operating margin		27	%		25	%		22	%		44	%		44	%		48	%		21	%		20	%		20	%

(a) Includes performance fees from Mellon Asset Management of $171 million, $127 million and $70 million for 2005, 2004 and 2003, respectively.

Note: In the first quarter of 2006, the financial results of Mellon 1st Business Bank, N.A. were moved to the Private Wealth Management sector from the Other sector.

All prior periods have been restated.

Page 13

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

(dollar amounts in millions, averages in billions; presented on an FTE basis)	Payment Solutions & Investor Services									Other									Consolidated Results
	2005			2004			2003			2005			2004			2003			2005			2004			2003
Revenue:
Investment management (a)		—			—			—			—			—			—			1,875			1,625			1,409
Distribution and service		—			—			—			—			—			—			317			269			240
Institutional trust and custody		—			—			—			9			10			(1	)		670			552			488
Securities lending revenue		—			—			—			—			—			—			108			76			69
Payment solutions & investor services		524			565			569			—			—			—			524			565			569
Transfer revenue		24			20			16			(10	)		(6	)		(2	)		—			—			—
Other fee revenue		2			(2	)		1			528			419			302			843			707			555
Total fee and other revenue (b)		550			583			586			527			423			299			4,337			3,794			3,330
Net interest revenue (expense) (c)		142			123			152			(12	)		11			55			503			483			593
Total revenue (d)		692			706			738			515			434			354			4,840			4,277			3,923
Credit quality expense		—			—			—			19			(12	)		5			19			(11	)		7
Total operating expense		527			509			525			279			284			201			3,417			3,060			2,786
Income from continuing operations before taxes (benefits) and cumulative effect of accounting change		165			197			213			217			162			148			1,404			1,228			1,130
Income taxes (benefits) (d)		58			67			75			79			56			51			492			421			396
Income (loss) from continuing operations before cumulative effect of accounting change		107			130			138			138			106			97			912			807			734
Cumulative effect of accounting change		—			—			—			—			—			(7	)		—			—			(7	)
Income from continuing operations		107			130			138			138			106			90			912			807			727
Income from discontinued operations after-tax		—			—			—			—			—			—			(130	)		(11	)		(26	)
Net income (loss)	$	107		$	130		$	138		$	138		$	106		$	90		$	782		$	796		$	701
Average loans	$	0.1		$	0.1		$	0.1		$	2.6		$	2.8		$	3.8		$	7.3		$	7.3		$	7.7
Average assets (e)	$	7.3		$	7.1		$	8.4		$	9.3		$	8.2		$	7.0		$	37.3		$	34.0		$	33.9
Average deposits	$	6.6		$	6.4		$	7.6		$	0.7		$	0.6		$	1.1		$	23.3		$	20.4		$	19.5
Average common equity	$	0.3		$	0.3		$	0.3		$	1.7		$	1.4		$	1.3		$	4.1		$	3.8		$	3.5
Average Tier I preferred equity	$	—		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.9		$	0.9		$	0.9
Market value of assets under management at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	781		$	707		$	657
Market value of assets under administration or custody at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	3,908		$	3,233		$	2,721
Return on common equity		34	%		44	%		39	%		n/m			n/m			n/m			22	%		21	%		21	%
Pretax operating margin		24	%		28	%		29	%		n/m			n/m			n/m			29	%		29	%		29	%

(a) Includes performance fees from Mellon Asset Management of $171 million, $127 million and $70 million for 2005, 2004 and 2003, respectively.

(b) Consolidated results include FTE impact of $41 million, $42 million and $42 million for 2005, 2004 and 2003, respectively.

(c) Consolidated results include FTE impact of $18 million, $17 million and $16 million for 2005, 2004 and 2003, respectively.

(d) Consolidated results include FTE impact of $59 million, $59 million and $58 million for 2005, 2004 and 2003, respectively.

(e) Consolidated average assets include average assets of discontinued operations of $.2 billion, $.6 billion and $1.0 billion for 2005, 2004 and 2003, respectively.

n/m - not meaningful

Note: In the first quarter of 2006, the financial results of Mellon 1st Business Bank, N.A. were moved to the Private Wealth Management sector from the Other sector.

All prior periods have been restated.

Page 14

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 9 Quarter Trend

NONPERFORMING ASSETS

(dollar amounts in millions unless otherwise noted)	2004												2005												2006
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Nonperforming loans:
Commercial and financial	$	48		$	11		$	17		$	10		$	9		$	7		$	7		$	1		$	1
Personal		2			3			3			4			4			4			3			2			2
Commercial real estate		1			—			—			—			—			—			—			—			—
Lease finance assets		—			—			—			15			15			15			27			13			10
Total nonperforming loans		51			14			20			29			28			26			37			16			13
Total acquired property		—			1			1			—			—			—			—			—			3
Total nonperforming assets	$	51		$	15		$	21		$	29		$	28		$	26		$	37		$	16		$	16
Nonperforming loans as a percentage of total loans		0.68	%		0.20	%		0.30	%		0.43	%		0.39	%		0.34	%		0.48	%		0.24	%		0.19	%
Nonperforming assets as a percentage of Tier I capital plus the reserve for loan losses		1.99	%		0.56	%		0.82	%		1.08	%		0.98	%		0.87	%		1.23	%		0.53	%		0.51	%(a)

(a) Preliminary

Page 15

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 9 Quarter Trend

PROVISION AND RESERVE FOR CREDIT EXPOSURE

(dollar amounts in millions unless otherwise noted)	2004												2005												2006
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Reserve Activity:
Loan losses		103			94			96			98			98			87			87			80			63
Unfunded commitments		75			77			73			71			67			77			81			77			78
Reserve at beginning of period	$	178		$	171		$	169		$	169		$	165		$	164		$	168		$	157		$	141
Total credit losses		—			(2	)		(1	)		(1	)		(1	)		—			(24	)		(15	)		—
Total recoveries		—			2			1			2			1			1			1			1			—
Sub-total - net credit recoveries (losses)	$	—		$	—		$	—		$	1		$	—		$	1		$	(23	)	$	(14	)	$	—
Credit losses on loans transferred to held for sale		—			—			—			—			—			—			—			—			—
Total net credit recoveries (losses)	$	—		$	—		$	—		$	1		$	—		$	1		$	(23	)	$	(14	)	$	—
Impact of disposals and acquisitions		—			—			—			—			—			—			—			—			—
Securitizations		—			(2	)		—			(1	)		—			—			—			—			—
Loss on sale of commitments		—			—			—			—			—			—			—			—			—
Provision for credit losses		(7	)		—			—			(4	)		(1	)		3			12			5			1
Reserves transferred to held for sale		—			—			—			—			—			—			—			(7	)		—
Reserve at end of period	$	171		$	169		$	169		$	165		$	164		$	168		$	157		$	141		$	142
Reserve for loan losses	$	94		$	96		$	98		$	98		$	87		$	87		$	80		$	63		$	60
Reserve for unfunded commitments		77			73			71			67			77			81			77			78			82
Reserve at end of period	$	171		$	169		$	169		$	165		$	164		$	168		$	157		$	141		$	142
Reserve for loan losses as a percentage of total loans (a)		1.27	%		1.39	%		1.40	%		1.45	%		1.23	%		1.15	%		1.05	%		0.96	%		0.91	%
Reserve for unfunded commitments as a percentage of unfunded commitments (a)		0.46	%		0.47	%		0.47	%		0.47	%		0.54	%		0.58	%		0.55	%		0.58	%		0.62	%
Annualized net credit losses to average loans		—	%		—	%		—	%		-0.03	%		—	%		—	%		1.23	%		0.77	%		—	%

(a) At period end.

Page 16