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) – January 17, 2007

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:

x 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 January 17, 2007, the Registrant conducted a conference call and webcast with respect to results of operations for full year 2006 and fourth quarter 2006. In conjunction with the conference call and webcast, the Registrant made available on its website beginning on January 17, 2007, 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 full year 2006 and fourth quarter 2006 dated January 17, 2007.
99.2	Mellon Financial Corporation – Quarterly Earnings Summary - Appendix – Financial Trends dated January 17, 2007.

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: January 23, 2007
	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 full year 2006 and fourth quarter 2006 dated January 17, 2007.	Furnished herewith.
99.2	Mellon Financial Corporation – Quarterly Earnings Summary - Appendix – Financial Trends dated January 17, 2007.	Filed herewith.

EX-99.1

Exhibit 99.1

Mellon Financial Corporation

Quarterly Earnings Summary

January 17, 2007

Table of Contents

Cautionary Statement / Additional Information	1
Fourth Quarter 2006 Financial Highlights (vs. fourth quarter 2005)	2
Financial Summary	3
Noninterest Revenue	4
Net Interest Revenue	5
Operating Expense	6
Full-Year 2006 Revenue (FTE) and Pre-tax Income (FTE) Mix / Assets Under Management Flows	7
Business Sectors / Mellon Asset Management	8
Private Wealth Management	9
Asset Servicing	10
Payment Solutions & Investor Services (PS&IS)	11
Other Sector / Income Taxes / Discontinued Operations	12
Junior Subordinated Debentures / Merger Agreement with The Bank of New York (BNY)	13
Financial Goals	14
Appendix – Financial Trends	15

All narrative comparisons in this Quarterly Earnings Summary are with the fourth quarter of 2005 and all information is reported on a continuing operations basis, unless otherwise noted.

During the fourth quarter of 2006, the following impacted the reporting of our business sector results:

• Mellon signed an agreement to sell its venture capital group, Mellon Ventures, and applied discontinued operations accounting to this business. Discontinued operations are discussed on page 12.

• A segment of our Working Capital Solutions business was moved from the PS&IS sector to Business Exits in the Other sector based upon our intention not to renew certain contracts with agencies of the Federal government that expire in 2007.

• Our asset administration business in Brazil was moved to the Mellon Asset Management sector from Business Exits in the Other sector as a result of a decision to strategically grow the business.

Accordingly, the income statements for these sectors for all periods have been restated.

Throughout this Quarterly Earnings Summary, certain 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.

Mellon Financial Corporation 4Q06 Quarterly Earnings Summary

CAUTIONARY STATEMENT

A number of statements (i) in this Quarterly Earnings Summary, (ii) in our presentations and (iii) in the responses to your questions are “forward-looking statements.” These statements, which may be expressed in a variety of ways, including the use of future or present tense language, relate to, among other things, the Corporation’s future financial goals, including future revenue, expenses and earnings, seasonality factors, the use of excess capital, new business wins, lower levels of incentives associated with performance fees; statements with respect to the proposed merger with The Bank of New York, including the future strength and growth of businesses, opportunities for cost savings and revenue synergies, continuing to deliver strong investment performance, superior client service and high fiduciary standards, the expected closing of the merger with The Bank of New York, expectations with respect to operations after the merger and the timing of the filing of the joint proxy statement/prospectus with the Securities and Exchange Commission (“SEC”); the expected tax provisioning rate for the first quarter of 2007; intentions not to renew certain contracts, subsequent closings in connection with the sale of our direct and indirect venture capital portfolio; seasonality of performance fees and resulting incentive payments; and intentions with respect to junior subordinated debentures and expected reduced funding costs, 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, the businesses of the Corporation and The Bank of New York may not be integrated successfully or the integration may be more difficult, time-consuming or costly than expected; the combined company may not realize, to the extent or at the time we expect, revenue synergies and cost savings from the transaction; revenues following the transaction may be lower than expected as a result of losses of customers or other reasons; deposit attrition, operating costs, customer loss and business disruption following the transaction, including, without limitation, difficulties in maintaining relationships with employees, may be greater than expected; governmental or shareholder approvals of the transaction may not be obtained on the proposed terms or expected timeframe or at all; 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; changes in the mix of deposits; the effects of the adoption of new accounting standards; corporate and personal customers’ bankruptcies; operational risk; inflation; levels of tax-free income; 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; geographic sources of income; 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 terrorist 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 SEC. Such forward-looking statements speak only as of Jan. 17, 2007, 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.

ADDITIONAL INFORMATION

The proposed transaction between The Bank of New York Company, Inc. and Mellon Financial Corporation will be submitted to The Bank of New York Company, Inc.’s and Mellon Financial Corporation’s shareholders for their consideration. Shareholders are urged to read the joint proxy statement/prospectus regarding the proposed transaction between The Bank of New York Company, Inc. and Mellon Financial Corporation because it will contain important information. Shareholders will be able to obtain a free copy of the joint proxy statement/prospectus, as well as other filings containing information about The Bank of New York Company, Inc. and Mellon Financial Corporation, without charge, at the SEC’s Internet site (http://www.sec.gov). Copies of the joint proxy statement/prospectus and other SEC filings that will be incorporated by reference in the joint proxy statement/prospectus will also be available, without charge, from Mellon Financial Corporation, Secretary of Mellon Financial Corporation, One Mellon Center, Pittsburgh, Pennsylvania 15258-0001 (800-205-7699), or from The Bank of New York Company, Inc., Investor Relations, One Wall Street, 31^st Floor, New York, New York 10286 (212-635-1578).

The respective directors and executive officers of The Bank of New York Company, Inc. and Mellon Financial Corporation and other persons may be deemed to be participants in the solicitation of proxies from the shareholders of Mellon Financial Corporation and/or The Bank of New York Company, Inc. in respect of the proposed transaction. Information about the directors and executive officers of Mellon Financial Corporation is set forth in the proxy statement for Mellon Financial Corporation’s 2006 annual meeting of shareholders, as filed with the SEC on March 15, 2006. Information about the directors and executive officers of The Bank of New York Company, Inc. is set forth in the proxy statement for The Bank of New York Company, Inc.’s 2006 annual meeting of shareholders, as filed with the SEC on March 24, 2006. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus when it becomes available.

Page - 1

Mellon Financial Corporation 4Q06 Quarterly Earnings Summary

FOURTH QUARTER 2006 FINANCIAL HIGHLIGHTS (vs. fourth quarter 2005)

	Income				EPS
	$ millions		% growth		$		% growth
Continuing operations*	$	298	49	%	$	.72	50	%
Total Corporation**	$	237	14	%	$	.57	14	%

* 4Q06 continuing operations includes $59 million pre-tax ($41 million after-tax), or 10 cents per share, of expenses (severance of $26 million, impairment charges of $16 million, merger-related expenses of $11 million, and additional occupancy reserves of $6 million); and $74 million, or 18 cents per share, of tax benefits primarily related to a reversal of deferred tax liabilities due to management’s decision to indefinitely reinvest earnings of certain foreign subsidiaries in accordance with Accounting Principles Board (APB) Opinion No. 23.

** 4Q06 total Corporation includes a net after-tax loss of $61 million from discontinued operations, due primarily to the loss on the sale of the venture capital portfolio.

Business Sectors	Total Revenue Growth		Commentary
Mellon Asset Management	53	%	Performance fees/net flows/market/acquisitions
Private Wealth Management	7	%	Strong fee growth/flat yield curve
Asset Servicing	15	%	New business/JV growth
Payment Solutions & Investor Services	—	%	Lower ancillary fee revenue/higher net interest revenue
Total Corporation	26	%

• Record level of assets under management $995 billion, up 27% versus a 14% increase in the S&P 500

• Growth was 18% excluding acquisitions

• Net inflows during the quarter totaled $14 billion; $72 billion for full-year 2006

• Record level of assets under custody/administration of $4.5 trillion, increased 15%

• Operating expense increased 32%

• Severance/impairment/merger-related/occupancy noted above increased expenses by 6%

• Approximately 21% of pre-tax income from outside the U.S. compared to 13% 4Q05 (see footnote (c) on page 14)

• Pre-tax margin was 22%, versus 26% for 4Q05 and 3Q06

• Severance/impairment/merger-related/occupancy negatively impacted 4Q06 pre-tax margin by approximately 400 bps

• Tax rate was 8.2% compared to 32.3% for 4Q05 and 32.1% for 3Q06; 1Q07 expected to be approximately 32.5%

• 4Q06 tax rate approximately 30.9% excluding the $74 million of tax benefits discussed above

• The tangible shareholders’ equity ratio was 4.74% at Dec. 31, 2006 vs. 4.25-5.25% target range

• Dec. 31, 2006 ratio was negatively impacted by approximately 40 bps resulting from the adoption of pension-related SFAS No. 158, as previously disclosed

• Repurchased 1.4 million shares during the fourth quarter of 2006 and issued 4.8 million shares, including 2.8 million in connection with the Walter Scott & Partners acquisition, with the remainder for benefit plan purposes

Page - 2

Mellon Financial Corporation 4Q06 Quarterly Earnings Summary

FINANCIAL SUMMARY

Mellon Financial Corporation

Continuing Operations

(dollar amounts in millions, non-FTE basis unless otherwise noted)	2005			2006												4Q06 vs. 4Q05
	4th Qtr			1st Qtr(a)			2nd Qtr			3rd Qtr			4th Qtr(a)
Total fee and other revenue	$	1,087		$	1,119		$	1,157		$	1,161		$	1,412		30	%
Gains on sales of securities		—			—			—			3			—		N/M
Net interest revenue		116			120			114			119			110		(5	)
Total revenue		1,203			1,239			1,271			1,283			1,522		26
Provision for credit losses		4			1			(3	)		(1	)		5		N/M
Total operating expense		903			954			958			963			1,192		32
Income from continuing operations before income taxes		296			284			316			321			325		10
Provision for income taxes		95			91			93			103			27
Income from continuing operations	$	201		$	193		$	223		$	218		$	298		49
Return on equity (annualized)		19	%		19	%		21	%		20	%		25	%
Pre-tax operating margin (FTE)		26	%		24	%		26	%		26	%		22	%
Average common shares and equivalents outstanding:
Basic		412,081			409,555			408,154			407,210			410,901
Diluted		415,534			414,248			412,986			411,996			416,687
Period-end data
Employees		16,500			16,600			16,700			16,700			16,800		2	%
Total shareholders’ equity to assets ratio (b)		10.86	%		11.07	%		10.55	%		10.54	%		11.27	%
Tangible shareholders’ equity to assets ratio (b)		5.19	%		5.26	%		4.99	%		5.35	%		4.74	%
Tier I capital ratio (b)		10.90	%		11.22	%		10.85	%		12.30	%		12.1	%(c)
Total (Tier I plus Tier II) capital ratio (b)		16.87	%		17.36	%		16.77	%		18.64	%		18.5	%(c)
Leverage capital ratio (b)		8.33	%		8.58	%		8.34	%		9.15	%		9.1	%(c)
Book value per common share	$	10.11		$	10.15		$	10.31		$	10.91		$	11.26
Tangible book value per common share	$	4.54		$	4.53		$	4.59		$	5.24		$	4.41
Dividends per share	$	.20		$	.20		$	.22		$	.22		$	.22
Dividend yield		2.3	%		2.2	%		2.6	%		2.3	%		2.1	%
Closing common stock price per share	$	34.25		$	35.60		$	34.43		$	39.10		$	42.15
Market capitalization	$	14,230		$	14,723		$	14,166		$	16,104		$	17,502

(a) 1Q06 includes the $19 million charge recorded in connection with payments, awards and benefits for Mellon’s former chairman and chief executive officer, pursuant to his employment agreement. 4Q06 continuing operations includes $59 million of pre-tax expenses as follows: severance of $26 million; impairment charges of $16 million; merger-related expenses of $11 million; and additional occupancy reserves of $6 million, for a total of $41 million after-tax. 4Q06 continuing operations also includes $74 million of tax benefits primarily related to a reversal of deferred tax liabilities due to management’s decision to indefinitely reinvest earnings of certain foreign subsidiaries in accordance with APB 23.

(b) Includes discontinued operations.

(c) Preliminary.

N/M - Not meaningful.

Page - 3

Mellon Financial Corporation 4Q06 Quarterly Earnings Summary

NONINTEREST REVENUE

(dollar amounts in millions, unless otherwise noted)	2005			2006												4Q06 vs. 4Q05
	4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Investment management	$	447		$	466		$	489		$	518		$	601		34	%
Performance fees		77			58			48			56			196		154
Total investment management		524			524			537			574			797		52
Distribution and service		90			98			108			107			102		13
Institutional trust and custody		214			224			244			233			244		14
Payment solutions & investor services		127			121			124			119			118		(7	)
Foreign exchange trading		46			58			68			53			60		31
Financing-related/equity investment		30			34			29			24			27		(7	)
Other		56			60			47			51			64		16
Total fee and other revenue		1,087			1,119			1,157			1,161			1,412		30
Gains on sales of securities		—			—			—			3			—		N/M
Total noninterest revenue (non-FTE)	$	1,087		$	1,119		$	1,157		$	1,164		$	1,412		30	%
Total noninterest revenue (FTE)	$	1,097		$	1,128		$	1,166		$	1,173		$	1,421		30	%
Fee and other revenue as a percentage of total revenue (FTE)		90	%		90	%		91	%		90	%		93	%
Annualized fee revenue per employee (in thousands) (based on average headcount)	$	261		$	273		$	279		$	276		$	333
Market value of assets under management at period-end (in billions)	$	781		$	808		$	870		$	918		$	995		27	%
Market value of assets under custody or administration at period-end (in billions)	$	3,908		$	4,125		$	4,213		$	4,380		$	4,491		15	%
S&P 500 Index - period-end		1248			1295			1270			1336			1418		14	%
S&P 500 Index - daily average		1231			1284			1281			1288			1389		13	%

N/M - Not meaningful.

KEY POINTS

• Investment management fees were up a strong 52%, driven by higher performance fees, net asset flows, and improved equity markets, the acquisition of Walter Scott & Partners, as well as a higher yield on average assets under management; excluding the impact of performance fees and acquisitions, investment management fees increased by 26%

• Distribution and service fees increased 13%, reflecting higher sales volumes and higher market values of mutual funds by Mellon Global Investments, our international distributor

• Institutional trust & custody fees increased 14%, due primarily to net new business and a 76% increase in net earnings from the ABN AMRO Mellon and CIBC Mellon joint ventures

• Payment solutions & investor services fees declined 7%, primarily reflecting lower ancillary services revenue at Mellon Investor Services and higher credits for compensating balances in lieu of fees (recorded in net interest revenue)

• Foreign exchange trading revenue increased 31% primarily due to higher client volumes

• Other noninterest revenue increased 16% due primarily to higher seed capital gains as well as higher expense reimbursements from the joint ventures that are recorded as other revenue, partially offset by the expiration of the transitional service agreement with Affiliated Computer Services (ACS)

Other Items Impacting Future Quarters

• Expected lower level of performance fees, which are seasonally highest in the fourth quarter; approximately $110 million of the 4Q06 performance fees have a fourth quarter (only) measurement period; the level of future performance fees is dependent upon a combination of the number of contracts in the period, investment performance and market conditions

Page - 4

Mellon Financial Corporation 4Q06 Quarterly Earnings Summary

NET INTEREST REVENUE

(dollar amounts in millions) (a)	2005			2006												4Q06 vs. 4Q05
	4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Net interest revenue (FTE)	$	121		$	125		$	117		$	123		$	114		(6	)%
Net interest margin (FTE)		1.81	%		1.93	%		1.71	%		1.64	%		1.56	%	(25	)bp
Selected average balances:
Money market investments	$	2,812		$	2,317		$	2,897		$	4,903		$	3,774		34	%
Trading account securities		283			309			439			456			480		69
Securities (b)		16,982			17,666			18,221			18,659			18,568		9
Loans		6,354			5,979			5,872			5,852			6,101		(4	)
Interest-earning assets (b)		26,431			26,271			27,429			29,870			28,923		9
Interest-bearing deposits		16,013			15,295			15,722			19,917			19,144		20
Noninterest-bearing deposits		7,892			8,274			8,362			7,988			7,407		(6	)
Noninterest-bearing deposits as a percentage of interest-earning assets		30	%		31	%		30	%		27	%		26	%

(a) Prior periods calculated on a continuing operations basis even though the balance sheet, in accordance with GAAP, is not restated for discontinued operations.

(b) Excludes adjustments for fair value required by SFAS No. 115.

bp - basis points.

KEY POINTS

• Net interest revenue (FTE) decreased $7 million, or 6% compared with 4Q05, and $9 million, or 8% (unannualized), compared with 3Q06. Both decreases primarily reflect the financing costs associated with the Walter Scott & Partners acquisition

• Net interest margin decreased 25 bp compared with 4Q05, reflecting the impact of a flat to inverted yield curve on our adjustable rate investment securities portfolio, an increase in lower yielding money market investments and trading account securities, a lower proportion of noninterest-bearing deposits, the exit and sale of the large corporate real estate loan portfolio, as well as financing costs related to the Walter Scott & Partners acquisition

• Please refer to pages 4 and 5 of the Appendix for a 12-quarter trend of average balances and interest yields/rates

Page - 5

Mellon Financial Corporation 4Q06 Quarterly Earnings Summary

OPERATING EXPENSE

(dollar amounts in millions)	2005			2006												4Q06 vs. 4Q05
	4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr (a)
Staff:
Compensation	$	260		$	268		$	270		$	279		$	309		18	%
Incentives (b)		133			170			145			160			248		87
Employee benefits		65			76			71			73			78		21
Total staff		458			514	(c)		486			512			635		39
Non-staff:
Professional, legal and other purchased services		123			115			125			131			145		19
Distribution and servicing		106			115			126			122			140		31
Net occupancy		59			59			58			51			68		16
Equipment		46			44			44			42			49		6
Business development		28			25			28			25			36		27
Communications		21			23			22			20			20		(3	)
Amortization of intangible assets		7			7			7			7			23		N/M
Other		55			52			62			53			76		39
Total non-staff		445			440			472			451			557		25
Total operating expense	$	903		$	954		$	958		$	963		$	1,192		32	%
Total staff expense as a percentage of total revenue (FTE)		38	%		41	%(c)		38	%		40	%		41	%
Employees at period-end		16,500			16,600			16,700			16,700			16,800		2	%

(a) Includes pre-tax expenses of: severance $26 million; impairment charges related to DPM and HBV $16 million; merger-related expenses $11 million; and additional occupancy reserves $6 million.

(b) Stock option expense totaled $6 million in the fourth quarter of 2005. It totaled $11 million in the 1Q06, including $3 million for Mellon’s former chairman and chief executive officer, pursuant to his employment agreement, $9 million in the 2Q06, $8 million in both the 3Q06 and 4Q06.

(c) 1Q06 includes a $19 million pre-tax charge in connection with payments, awards and benefits for Mellon’s former chairman and chief executive officer, pursuant to his employment agreement. Excluding this charge, staff expense as a percentage of total revenue (FTE) was 40% in 1Q06.

N/M - Not meaningful.

KEY POINTS

Total Staff

• Excluding the impact of severance, compensation expense increased by 9% (related headcount was up only 2%), primarily due to the Walter Scott & Partners acquisition, our annual merit increase effective July 1, 2006 and in support of business growth

• The growth in incentives of 87% was principally due to the results of Mellon Asset Management and Asset Servicing as well as higher corporate incentives based upon 2006 performance

• The increase in benefits was in part due to the increased cost of pensions

Non-Staff

• Higher professional, legal and purchased services due to merger-related expenses ($11 million) and in support of new business generation and strategic initiatives

• Higher distribution and servicing related primarily to an increased level of mutual fund activity outside of the U.S.

• Higher net occupancy expense primarily due to additional 4Q06 occupancy reserves ($6 million)

• Increased business development expense in support of new business generation

• Higher amortization of intangible assets due primarily to an $11 million impairment charge at DPM Mellon and the impact of the Walter Scott & Partners acquisition

• Increased other expense related to the growth of our Asset Servicing joint ventures and the associated amounts of pass-through payments, an impairment charge related to HBV Alternative Investment Strategies as well as a higher level of year-end expenses

Other Items Impacting Future Quarters

• Expected lower level of performance fee related incentives, which are seasonally highest in the fourth quarter

Page - 6

Mellon Financial Corporation 4Q06 Quarterly Earnings Summary

FULL-YEAR 2006 REVENUE (FTE) AND PRE-TAX INCOME (FTE) MIX

Revenue *	Pre-tax Income *
87% Asset Management and Asset Servicing	91% Asset Management and Asset Servicing

Full-Year 2006 versus 2005 Revenue and Pre-tax Income Growth (FTE)

	Revenue		Pre-tax Income *
Mellon Asset Management	33	%	55	%
Asset Servicing	24	%	26	%
Private Wealth Management	5	%	(4	)%
Payment Solutions & Investor Services	1	%	(1	)%
Total Corporation	18	%*	17	%

* Growth rates adjusted for items detailed on page 14.

ASSETS UNDER MANAGEMENT FLOWS

12 Months

Changes in market value of assets under management from Dec. 31, 2005 to Dec. 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		36		2		—		38
Money market		29		—		—		29
Securities lending		—		—		5		5
Total net inflows		65		2		5		72
Net market appreciation (a)		64		4		—		68
Acquisitions, net, and transfers		66		—		8		74
Market value of assets under management at Dec. 31, 2006	$	820	$	59	$	116	$	995

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

3 Months

Changes in market value of assets under management from Sept. 30, 2006 to Dec. 31, 2006 - by business sector

(in billions)	Mellon Asset Management		Private Wealth Management		Asset Servicing		Total
Market value of assets under management at Sept. 30, 2006	$	748	$	55	$	115	$	918
Net inflows:
Long-term		9		1		—		10
Money market		3		—		—		3
Securities lending		—		—		1		1
Total net inflows		12		1		1		14
Net market appreciation (a)		33		3		—		36
Acquisitions, net		27		—		—		27
Market value of assets under management at Dec. 31, 2006	$	820	$	59	$	116	$	995

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

Page - 7

Mellon Financial Corporation 4Q06 Quarterly Earnings Summary

BUSINESS SECTORS

Our lines of business are combined into five business sectors: Mellon Asset Management; Private Wealth Management; Asset Servicing; Payment Solutions & Investor Services (PS&IS); and Other.

MELLON ASSET MANAGEMENT

(dollar amounts in millions, unless otherwise noted; presented on an FTE basis)	2005			2006												4Q06 vs. 4Q05
	4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Revenue:
Investment management:
Mutual funds	$	201		$	194		$	201		$	204		$	228		14	%
Institutional clients		136			158			170			196			246		81
Performance fees		77			58			48			56			196		154
Private clients		23			24			26			25			28		18
Total investment management		437			434			445			481			698		60
Distribution and service		90			98			108			107			102		13
Other fee revenue		13			26			12			23			38		N/M
Total fee and other revenue		540			558			565			611			838		55
Net interest revenue (expense)		(4	)		(4	)		(10	)		(10	)		(18	)	N/M
Total revenue		536			554			555			601			820		53
Operating expense		375			395			399			415			545		45
Income before taxes	$	161		$	159		$	156		$	186		$	275		71	%
Market value of assets under management at period-end (in billions)(a)	$	625		$	649		$	708		$	748		$	820		31	%
Assets under management - net inflows (outflows) (in billions):
Long-term	$	6		$	10		$	11		$	6		$	9
Money market	$	4		$	(3	)	$	10		$	19		$	3
Employees at period-end		2,600			2,600			2,600			2,600			2,700
Return on common equity (annualized)		43	%		44	%		42	%		50	%		74	%
Pre-tax operating margin		30	%		29	%		28	%		31	%		34	%
Adjusted pre-tax operating margin (b)		38	%		36	%		36	%		39	%		40	%
MEMO: Intangible amortization	$	3		$	3		$	3		$	3		$	8

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

(b) Calculated by netting distribution and servicing expense from revenue.

N/M - Not meaningful.

Note: 4Q06 includes $6 million of severance expense as well as $5 million of impairment charges related to the sale of HBV Alternative Investment Strategies. During 4Q06, our asset administration business in Brazil was moved to this sector from Business Exits in the Other sector. Income statements for all periods have been restated.

KEY POINTS

• Strong positive operating leverage resulting in a 400 bp improvement in pre-tax operating margin

• Investment management fees increased 60%, reflecting higher performance fees, net asset flows, improved equity markets, the Walter Scott & Partners acquisition, as well as a higher yield on average assets under management. The increase in yield was driven by higher performance fees, a higher proportion of equity assets and increased mutual fund sales outside the U.S.

• Net positive AUM inflows of $12 billion in 4Q06 were comprised of $9 billion of long-term inflows and $3 billion of money market inflows

• Mutual fund fee revenue increased 14%, primarily reflecting a higher level of international and domestic flows

• Institutional client fee revenue increased 81%, driven by strong net asset flows, improved equity markets and the Walter Scott & Partners acquisition

• Performance fees increased 154%, driven primarily by new hedge fund and international strategies

• Distribution and service fees increased 13%, reflecting higher sales volumes and higher market values of mutual funds by Mellon Global Investments, our international distributor

• Operating expense increased 45% due primarily to: higher incentives related to an increased level of performance fees and new business; increased distribution expenses, the impact of the Walter Scott & Partners acquisition; severance expense; and the HBV impairment charge

Other Items Impacting Future Quarters

• Expected lower level of performance fees, which are seasonally highest in the fourth quarter; approximately $110 million of the 4Q06 performance fees have a fourth quarter (only) measurement period; the level of future performance fees is dependent upon a combination of the number of contracts in the period, investment performance and market conditions

Page - 8

Mellon Financial Corporation 4Q06 Quarterly Earnings Summary

PRIVATE WEALTH MANAGEMENT

(dollar amounts in millions, unless otherwise noted; presented on an FTE basis)	2005						2006									4Q06 vs. 4Q05
	4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Revenue:
Investment management	$	87		$	90		$	92		$	93		$	99		12	%
Institutional trust and custody		2			3			2			3			2		8
Other fee revenue		6			5			6			4			5		N/M
Total fee and other revenue		95			98			100			100			106		12
Net interest revenue		76			74			77			77			77		1
Total revenue		171			172			177			177			183		7
Operating expense		100			103			105			106			112		12
Income before taxes	$	71		$	69		$	72		$	71		$	71		1	%
Average loans	$	4,563		$	4,615		$	4,688		$	4,669		$	4,762		4	%
Average assets	$	10,860		$	10,279		$	10,395		$	10,544		$	10,760		(1	)
Average deposits	$	9,474		$	8,824		$	8,865		$	8,827		$	8,936		(6	)
Market value of total client assets at period end (in billions)	$	86		$	89		$	87		$	90		$	95		10	%
Employees at period-end		1,900			1,900			2,000			2,000			2,000
Return on common equity (annualized)		32	%		34	%		35	%		34	%		35	%
Pre-tax operating margin		41	%		40	%		41	%		40	%		39	%
MEMO: Intangible amortization	$	1		$	1		$	1		$	1		$	1

N/M - Not meaningful.

Note: 4Q06 includes $1 million of severance expense.

KEY POINTS

• Total fee and other revenue increased 12% to a record quarterly level, driven by organic growth and record quarterly new business, improved equity markets and the acquisitions of City Capital (December 2005) in Atlanta and the Planned Giving Services Group of U.S. Trust Corporation (March 2006)

• A 10% increase in total client assets, to a record level of $95 billion, resulted from net new business noted above, as well as acquisitions and improved market conditions

• Net interest revenue increased 1% due primarily to higher loan levels and margins; the increase in loans reflects the impact of our national private banking initiatives

• Negative operating leverage resulted from the expense impact of business growth initiatives including the impact of additional offices and sales representatives and increased marketing expense, as well as severance expense

• In 2006 opened 5 new office locations including two in Florida (Vero Beach, Naples), one in California (Century City), one in North Carolina (Greensboro) and one in London

• Added 17 (net) sales officers in 2006

Page - 9

Mellon Financial Corporation 4Q06 Quarterly Earnings Summary

ASSET SERVICING

(dollar amounts in millions, unless otherwise noted; presented on an FTE basis)	2005			2006												4Q06 vs. 4Q05
	4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Revenue:
Institutional trust and custody	$	171		$	174		$	187		$	188		$	196		14	%
Securities lending revenue		26			30			38			26			26		2
Other fee revenue		72			83			96			77			89		22
Total fee and other revenue (a)		269			287			321			291			311		15
Net interest revenue		20			26			27			29			24		19
Total revenue		289			313			348			320			335		15
Operating expense		238			245			261			257			292		22
Income before taxes	$	51		$	68		$	87		$	63		$	43		(15	)%
Average deposits	$	7,077		$	7,111		$	7,570		$	8,737		$	8,975		27	%
Market value of assets under management at period-end (in billions)(b)	$	103		$	104		$	108		$	115		$	116		13	%
Market value of assets under custody or administration at period-end (in billions) (a)	$	3,874		$	4,091		$	4,180		$	4,344		$	4,453		15	%
Employees at period-end		4,500			4,500			4,500			4,600			4,600
Return on common equity (annualized)		27	%		34	%		42	%		31	%		21	%
Pre-tax operating margin		18	%		22	%		25	%		20	%		13	%
MEMO:
Total joint venture revenue (a)	$	107		$	119		$	149		$	140		$	143		34	%
Intangible amortization	$	3		$	3		$	3		$	2		$	14		N/M

(a) Total joint venture revenue includes the activity of CIBC Mellon and ABN AMRO Mellon. Included in total fee and other revenue is Mellon’s portion of the earnings of the joint ventures, which are accounted for under the equity method of accounting. Assets under custody or administration for CIBC Mellon totaled $667 billion, $682 billion, $695 billion, $737 billion and $748 billion. Assets under custody or administration of ABN AMRO Mellon totaled $522 billion, $586 billion, $640 billion, $696 billion and $773 billion.

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

Note: 4Q06 includes $11 million of impairment charged related to DPM Mellon and $6 million of severance expense.

KEY POINTS

• Total revenue increased 15% reflecting:

• A 14% increase in institutional trust and custody fees, driven by new business and a 76% increase in net earnings from the ABN AMRO Mellon and CIBC Mellon joint ventures

• A 22% increase in other fee revenue, driven by higher foreign exchange fees due to higher client volumes, as well as higher expense reimbursements from the joint ventures

• A 19% increase in net interest revenue due to higher foreign and domestic deposit balances

• Operating expense increased 22%, reflecting new business and growth initiatives, the $11 million impairment charge related to DPM, increased joint venture pass-through payments, severance expense of $6 million and a higher level of year-end expenses; the impairment charge, severance and higher year-end expenses accounted for over one-third of the operating expense increase

• Assets under custody or administration increased to a record level of $4.453 trillion, including net new conversions of $84 billion in 4Q06, and $224 billion for the full-year 2006

• New business wins totaled $124 billion in 4Q06 and $506 billion for the full-year 2006

• Global Custodian Magazine (2006 Custody Survey) - #1 rated custodian among the peer group of large custodians for the fifth consecutive year (released January 2007)

Page - 10

Mellon Financial Corporation 4Q06 Quarterly Earnings Summary

PAYMENT SOLUTIONS & INVESTOR SERVICES (PS&IS)

(dollar amounts in millions, unless otherwise noted; presented on an FTE basis)	2005			2006												4Q06 vs. 4Q05
	4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Revenue:
Payment solutions & investor services	$	119		$	115		$	119		$	113		$	113		(5	)%
Other fee revenue		6			5			6			5			6		7
Total fee and other revenue		125			120			125			118			119		(4	)
Net interest revenue		38			41			43			42			44		17
Total revenue		163			161			168			160			163		—
Operating expense		127			124			130			125			135		7
Income before taxes	$	36		$	37		$	38		$	35		$	28		(22	)%
Average deposits	$	6,540		$	6,738		$	6,515		$	6,211		$	6,761		3	%
Employees at period-end		3,400			3,300			3,300			3,300			3,300
Return on common equity (annualized)		29	%		37	%		39	%		32	%		28	%
Pre-tax operating margin		22	%		23	%		23	%		21	%		17	%
MEMO: Intangible amortization	$	—		$	—		$	—		$	1		$	—

Note: During 4Q06, a segment of our working capital solutions business was moved from the Payment Solutions & Investor Services sector to Business Exits in the Other sector based upon our intention not to renew certain contracts with agencies of the Federal government that expire in 2007. The income statements for all periods have been restated. In addition, 4Q06 includes $6 million of severance expense.

KEY POINTS

• Total fee and other revenue decreased $6 million primarily reflecting lower ancillary service revenue at Mellon Investor Services and higher credits for compensating balances in lieu of fees (recorded in net interest revenue)

• Net interest revenue increased $6 million resulting from higher deposit levels, including higher compensating balances, and increased spreads reflecting the higher interest rates at which excess deposits were invested

• Operating expense increased 7% due primarily to $6 million of severance expense, which negatively impacted the pre-tax operating margin by approximately 400 bp; the severance expense represents a strategic action to improve the operating margins of our Working Capital Solutions and Mellon Investor Services businesses; headcount down 3% year over year

• Bank Leader Survey (2006) - #1 rated for customer satisfaction among U.S. cash management providers

Page - 11

Mellon Financial Corporation 4Q06 Quarterly Earnings Summary

OTHER SECTOR

(in millions, presented on an FTE basis)	2005			2006
	4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Revenue:
Fee and other revenue	$	68		$	65		$	55		$	53		$	47
Net interest revenue		(9	)		(12	)		(20	)		(15	)		(13	)
Total revenue		59			53			35			38			34
Credit quality expense		4			1			(3	)		(1	)		5
Operating expense		63			87			63			60			108
Income (loss) before taxes (FTE)	$	(8	)	$	(35	)	$	(25	)	$	(21	)	$	(79	)

KEY POINTS

• Fee and other revenue decreased $21 million reflecting lower revenue in Business Exits and from revenue recorded in 4Q05 from a transitional services agreement with ACS

• Net interest revenue decreased $4 million, reflecting the impact of a flat to inverted yield curve on our adjustable rate investment securities portfolio

• Operating expense increased $45 million primarily due to: higher corporate incentives and pension expense; severance; merger-related expenses; occupancy reserves; and other expenses

INCOME TAXES

The tax rate was 8.2% in the fourth quarter of 2006. The provision for income taxes in the fourth quarter of 2006 includes a tax benefit of $74 million primarily related to a reversal of deferred tax liabilities due to management’s decision to indefinitely reinvest earnings of certain foreign subsidiaries in accordance with APB 23. Excluding this tax benefit, our effective tax rate for the fourth quarter of 2006 would have been 30.9%, compared with 32.3% in the fourth quarter of 2005. It is currently anticipated that the tax rate for the first quarter of 2007 will be approximately 32.5%.

DISCONTINUED OPERATIONS

In August 2006, we announced a definitive agreement to sell our insurance premium financing company, AFCO Credit Corporation, and its Canadian affiliate, CAFO Inc., to Branch Banking and Trust Company. The sale closed on Jan. 2, 2007, resulting in an immaterial gain.

In December 2006, Mellon sold its ownership interest in the direct and indirect portfolios of Mellon Ventures, our venture capital business, to investment funds organized by affiliates of The Goldman Sachs Group, Inc. and New MVI, L.P. This decision was based upon the determination that this business no longer fits our strategic focus on our global asset management and securities servicing businesses and that the capital consumed by this business could be deployed in other strategic initiatives. A substantial portion of the sale was completed in December with subsequent closings expected to occur during the first quarter of 2007, once remaining consents to the transfer are obtained. Based on this transaction, we applied discontinued operations accounting to this business. Accordingly, the income statements for all periods in this earnings summary have been restated. This restatement resulted in a reduction to previously reported levels of equity investment revenue; a reduction in operating expenses; an increase in net interest revenue; and a change in continuing earnings per share. The sale of the portfolios and related costs generated an after-tax loss of $68 million, reported as a net loss on disposals.

In the fourth quarter of 2006, income from operations of $4 million was recorded primarily from the operations of Mellon Ventures. The net loss on disposals in the fourth quarter of 2006 totaled $65 million, as the loss on sale of the Mellon Ventures portfolio was partially offset by income tax net benefits recognized primarily on prior-periods divestitures.

Page - 12

Mellon Financial Corporation 4Q06 Quarterly Earnings Summary

JUNIOR SUBORDINATED DEBENTURES

Based on current interest rate expectations and subject to our ability to issue replacement securities prior to the planned merger outlined below, we intend to redeem our Series A and Series B junior subordinated debentures, each issued for a face value of $515 million, in the first half of 2007. The securities are redeemable at 103.86% and 103.9975% of the liquidation amounts during the 12-month periods beginning on Dec. 1, 2006 and Jan. 15, 2007, respectively. We expect to replace these securities with a combination of Tier I qualifying capital securities and senior debt securities that would reduce our future funding costs. Redemption of both securities would result in a total pre-tax charge to income of $46 million for the redemption premiums and write-off of unamortized issuance costs.

MERGER AGREEMENT WITH THE BANK OF NEW YORK (“BNY”)

On Dec. 3, 2006, Mellon and BNY entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which Mellon and BNY will each merge with and into a newly formed corporation to be called The Bank of New York Mellon Corporation. The boards of directors of both companies have unanimously approved the Merger Agreement. The board of directors of each company has adopted a resolution recommending the adoption of the Merger Agreement by its respective shareholders, and each party has agreed to put these matters before their respective shareholders for consideration. Subject to satisfaction of various conditions of closing, the merger is expected to close early in the third quarter of 2007.

It is currently anticipated that Mellon and BNY will file a joint proxy statement/prospectus with the SEC regarding the proposed merger in late February or early March, after each party files its annual report on Form 10-K with the SEC.

Page - 13

Mellon Financial Corporation 4Q06 Quarterly Earnings Summary

FINANCIAL GOALS

	Full-Year Revenue Growth				Full-Year Pre-tax Margin
Business Sectors	Actual 2006 vs. 2005		Goal 2007-2009		Actual 2006 (a)		Goal 2009
Mellon Asset Management	33	%	11-14	%	31	%	31-33	%
Private Wealth Management	5	%	8-10	%	40	%	38-40	%
Asset Servicing	24	%	10-12	%	20	%	25-27	%
Payment Solutions & Investor Services	1	%	3-5	%	21	%	25-27	%
Total Corporation					24	%	29-30	%+

	2005 Actual	2006 Actual	Goal
Fee revenue per employee (in thousands)	$250 (b)	$290	> $350 by 2009
Percent of pre-tax income – non-U.S.	10% (c)	18% (c)	>25% by 2008

(a) Full-year 2006 included the following expenses:

Mellon Asset Management - $8 million of severance expense and $5 million of impairment charges, which combined, negatively impacted the full-year 2006 pre-tax operating margin by approximately 50 basis points.

Asset Servicing - $11 million of impairment charges and $7 million of severance expense, which combined, negatively impacted the full-year 2006 pre-tax operating margin by approximately 100 basis points.

Payment Solutions & Investor Services - $7 million of severance expense that negatively impacted the full-year 2006 pre-tax operating margin by approximately 100 basis points.

Total Corporation - 1Q06 charges recorded in connection with payments, awards and benefits for Mellon’s former chairman and chief executive officer pursuant to his employment agreement; 4Q06 additional severance expense; impairment charges; merger-related expenses; and additional occupancy reserves. Combined, these expenses totaled $78 million, and negatively impacted the full-year 2006 pre-tax operating margin by approximately 200 basis points.

(b) Amount adjusted for the 1Q05 $197 million pre-tax gain from the sale of our investment in Shinsei Bank.

(c) The 2006 ratio has been adjusted for the expense items described above. The 2005 ratio has been adjusted for the Shinsei gain noted above, and $15 million of other expenses as described on page 7 of our 2005 Financial Annual Report.

Note: Goals defined at the Mellon Investor Conference on Nov. 13, 2006.

Page - 14

QUARTERLY EARNINGS SUMMARY

APPENDIX

Financial Trends

Table of Contents

Notes to Financial Trends	1
Consolidated Results	2
Noninterest Revenue	3
Average Balances	4
Interest Yields / Rates	5
Operating Expense	6
Assets Under Management / Administration or Custody	7
Assets Under Management Net Flows	8
Mellon Asset Management	9
Private Wealth Management	10
Asset Servicing	11
Payment Solutions & Investor Services	12
Other Sector	13
Annual Business Sector Trends 2004-2006	14
Nonperforming Assets	16
Provision and Reserve for Credit Exposure	17

Page 15

EX-99.2

Exhibit 99.2

MELLON FINANCIAL CORPORATION

Notes to Financial Trends

Notes:

During the fourth quarter of 2006, the following impacted the reporting of our business sector results:

Mellon signed an agreement to sell its venture capital group, Mellon Ventures, and applied discontinued operations accounting to this business.

A segment of our Working Capital Solutions business line was moved from the PS&IS sector to Business Exits in the Other sector based upon our intention not to renew certain contracts with agencies of the Federal government that expire in 2007.

Our asset administration business in Brazil was moved to the Mellon Asset Management sector from Business Exits in the Other sector as a result of a decision to strategically grow the business.

Accordingly, the financial statements for these sectors for all periods have been restated.

During the fourth quarter of 2006, we completed the previously announced acquisition of Walter Scott & Partners. The financial results are included in the Mellon Asset Management sector.

During the third quarter of 2006, we announced an agreement to sell our insurance premium financing business to BB&T and applied discontinued operations accounting for this business.

During the second quarter of 2006, we completed the formation of the previously announced 50:50 joint venture with WestLB AG, WestLB Mellon Asset Management. The financial results are included in the Mellon Asset Management sector.

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.

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-K.

Discontinued Operations Accounting -

The income/(loss) and average assets from discontinued operations accounting have 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. Consolidated average assets include average assets of discontinued operations.

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 - 12 Quarter Trend

(dollar amounts in millions unless otherwise noted; 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)			2nd Qtr			3rd Qtr			4th Qtr (f)
Revenue:
Investment management		366			369			368			395			402			417			438			447			466			489			518			601
Performance fees		39			17			11			60			27			26			41			77			58			48			56			196
Total investment management		405			386			379			455			429			443			479			524			524			537			574			797
Distribution and service		66			67			68			68			71			74			82			90			98			108			107			102
Institutional trust and custody		138			137			132			145			150			160			172			188			194			206			207			218
Securities lending revenue		18			24			16			18			24			33			25			26			30			38			26			26
Payment solutions & investor services		145			149			133			138			134			141			122			127			121			124			119			118
Other fee revenue		233			140			114			130			332			143			145			142			161			153			140			160
Total fee and other revenue		1,005			903			842			954			1,140			994			1,025			1,097			1,128			1,166			1,173			1,421
Net interest revenue		114			121			115			120			118			128			117			121			125			117			123			114
Total revenue		1,119			1,024			957			1,074			1,258			1,122			1,142			1,218			1,253			1,283			1,296			1,535
Credit quality expense		(7	)		(2	)		(1	)		(4	)		(2	)		3			12			4			1			(3	)		(1	)		5
Amortization of intangible assets		4			5			4			6			6			7			7			7			7			7			7			23
Other operating expenses		739			743			705			794			782			807			850			896			947			951			956			1,169
Total operating expenses		743			748			709			800			788			814			857			903			954			958			963			1,192
Income from continuing operations before income taxes (benefits)		383			278			249			278			472			305			273			311			298			328			334			338
Income taxes (benefits)		135			98			80			94			172			108			87			110			105			105			116			40
Income from continuing operations		248			180			169			184			300			197			186			201			193			223			218			298
Income from discontinued operations after-tax		(3	)		(4	)		14			8			(45	)		(72	)		8			7			14			9			4			(61	)
Net income (loss)	$	245		$	176		$	183		$	192		$	255		$	125		$	194		$	208		$	207		$	232		$	222		$	237
EPS from Continuing Operations	$	0.58		$	0.43		$	0.40		$	0.43		$	0.71		$	0.47		$	0.45		$	0.48		$	0.47		$	0.54		$	0.52		$	0.72
Average loans (g)	$	7,489		$	7,491		$	7,047		$	7,205		$	6,882		$	7,339		$	7,421		$	7,133		$	6,758		$	6,625		$	6,684		$	6,884
Average assets (h)	$	33,222		$	33,377		$	33,447		$	35,951		$	36,869		$	36,436		$	37,907		$	37,988		$	37,515		$	39,104		$	41,447		$	41,362
Average deposits	$	19,227		$	19,776		$	20,295		$	22,083		$	23,035		$	22,322		$	23,566		$	23,905		$	23,569		$	24,084		$	27,905		$	26,551
Average common equity	$	3,769		$	3,753		$	3,822		$	3,983		$	4,178		$	4,087		$	4,109		$	4,114		$	4,157		$	4,182		$	4,312		$	4,673
Average Tier I preferred equity	$	1,026		$	1,011		$	1,010		$	1,047		$	1,038		$	1,037		$	1,032		$	1,024		$	1,022		$	1,015		$	1,072		$	1,403
Market value of assets under management at period end (in billions)	$	679		$	679		$	670		$	707		$	729		$	738		$	766		$	781		$	808		$	870		$	918		$	995
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		$	4,213		$	4,380		$	4,491
Return on common equity		26	%		19	%		18	%		18	%		29	%		19	%		18	%		19	%		19	%		21	%		20	%		25	%
Pretax operating margin		34	%		27	%		26	%		26	%		38	%		27	%		24	%		26	%		24	%		26	%		26	%		22	%
Pretax operating margin (excluding items in footnotes a to f)		30	%		29	%		26	%		24	%		27	%		27	%		24	%		26	%		25	%		26	%		26	%		26	%

(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 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 the writedown of a small business (see footnote a).

(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) The fourth quarter of 2006 includes $26 million in severance, $16 million of impairment charges, $11 million in merger-related expenses and $6 million in additional occupancy reserves. In addition, the income from continuing operations includes $74 million of tax benefits primarily related to a reversal of deferred tax liabilities due to management’s decision to indefinitely reinvest earnings of certain foreign subsidiaries in accordance with APB opinion No. 23.

(g) Consolidated average loans include average loans of discontinued operations of $597 million, $714 million, $506 million and $571 million for the first, second, third and fourth quarters of 2004; $397 million, $749 million, $802 million and $779 million for the first, second, third and fourth quarters of 2005; $779 million, $753 million, $832 million and $784 million for the first, second, third and fourth quarters of 2006.

(h) Consolidated average assets include average assets of discontinued operations of $1,850 million, $1,930 million, $1,760 million and $1,783 million for the first, second, third and fourth quarters of 2004; $1,586 million, $1,616 million, $1,456 million and $1,427 million for the first, second, third and fourth quarters of 2005; $1,408 million, $1,381 million, $1,408 million and $1,320 million for the first, second, third and fourth quarters of 2006.

Page 2

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 12 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			2nd Qtr			3rd Qtr			4th Qtr
Investment management	$	366		$	369		$	368		$	395		$	402		$	417		$	438		$	447		$	466		$	489		$	518		$	601
Performance fees		39			17			11			60			27			26			41			77			58			48			56			196
Total investment management		405			386			379			455			429			443			479			524			524			537			574			797
Distribution and service		66			67			68			68			71			74			82			90			98			108			107			102
Institutional trust & custody		156			161			148			163			174			193			197			214			224			244			233			244
Payment solutions & investor services		145			149			133			138			134			141			122			127			121			124			119			118
Foreign exchange trading		57			50			38			41			54			50			52			46			58			68			53			60
Financing-related and Equity Investment		127			28			26			33			230			35			31			30			34			29			24			27
Other		37			44			40			46			38			45			53			56			60			47			51			64
Total fee and other revenue		993			885			832			944			1,130			981			1,016			1,087			1,119			1,157			1,161			1,412
Gains on the sales of securities		—			8			—			—			—			—			1			—			—			—			3			—
Total noninterest revenue (non-FTE)	$	993		$	893		$	832		$	944		$	1,130		$	981		$	1,017		$	1,087		$	1,119		$	1,157		$	1,164		$	1,412
FTE impact		12			10			10			10			10			13			8			10			9			9			9			9
Total noninterest revenue (FTE)	$	1,005		$	903		$	842		$	954		$	1,140		$	994		$	1,025		$	1,097		$	1,128		$	1,166		$	1,173		$	1,421
Fee and other revenue as a percentage of fee and net interest revenue (FTE) (a)		90	%		89	%		88	%		89	%		91	%		89	%		90	%		90	%		90	%		91	%		90	%		93	%
Market value of assets under management at period end (in billions)	$	679		$	679		$	670		$	707		$	729		$	738		$	766		$	781		$	808		$	870		$	918		$	995
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		$	4,213		$	4,380		$	4,491
S&P 500 Index - period end		1126			1141			1115			1212			1181			1191			1229			1248			1295			1270			1336			1418
S&P 500 Index - daily average		1133			1123			1104			1163			1192			1182			1224			1231			1284			1281			1288			1389

(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 90% in the first quarter of 2004.

Page 3

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 12 Quarter Trend

Average Balances (a)

	2004												2005												2006
(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
Average assets:
Investment Securities:
Fixed rate	$	6,294		$	6,924		$	7,001		$	6,448		$	6,231		$	6,001		$	5,772		$	5,704		$	5,557		$	5,444		$	5,319		$	5,196
Adjustable rate		1,156			1,272			1,426			2,023			2,490			2,791			3,053			3,355			3,645			3,584			3,360			3,161
Floating rate		2,786			2,771			2,731			3,509			4,207			4,847			6,315			7,040			7,595			8,366			9,164			9,421
Obligations of states and political subdivisions		543			560			631			690			749			794			819			829			814			771			749			722
Other (b)		190			182			68			73			68			71			70			54			55			56			67			68
Total investment securities	$	10,969		$	11,709		$	11,857		$	12,743		$	13,745		$	14,504		$	16,029		$	16,982		$	17,666		$	18,221		$	18,659		$	18,568
Trading account securities		352			268			228			248			308			294			309			283			309			439			456			480
Money Market Assets		2,959			2,678			3,290			4,143			4,234			3,293			2,700			2,812			2,317			2,897			4,903			3,774
Loans, net of unearned discount		6,892			6,778			6,541			6,634			6,483			6,589			6,618			6,354			5,979			5,872			5,852			6,101
Total interest-earning assets		21,172			21,433			21,916			23,768			24,770			24,680			25,656			26,431			26,271			27,429			29,870			28,923
Total non interest-earning assets (c)		12,009			12,010			11,620			12,195			12,145			11,829			12,323			11,726			11,416			11,935			11,801			12,549
Total Assets	$	33,181		$	33,443		$	33,536		$	35,963		$	36,915		$	36,509		$	37,979		$	38,157		$	37,687		$	39,364		$	41,671		$	41,472
Average liabilities and shareholders’ equity:
Deposits in domestic offices	$	7,695		$	8,041		$	8,655		$	9,164		$	9,653		$	9,298		$	9,760		$	10,087		$	9,748		$	9,673		$	13,328		$	13,157
Deposits in foreign offices		4,865			4,760			4,664			5,598			6,256			6,004			6,395			5,926			5,547			6,049			6,589			5,987
Total interest-bearing deposits		12,560			12,801			13,319			14,762			15,909			15,302			16,155			16,013			15,295			15,722			19,917			19,144
Federal funds purchased and securities under repurchase agreements		1,476			1,478			1,155			960			978			1,627			2,135			1,763			1,765			2,394			1,376			1,560
Other funds borrowed		677			520			370			503			421			442			411			438			468			590			144			297
Long term debt		5,222			5,253			5,264			5,436			5,511			5,293			4,836			4,692			4,633			4,584			4,669			5,042
Funding of disc ops		(1,685	)		(1,797	)		(1,619	)		(1,627	)		(1,428	)		(1,611	)		(1,418	)		(1,390	)		(1,374	)		(1,343	)		(1,373	)		(1,283	)
Total interest-bearing liabilities		18,250			18,255			18,489			20,034			21,391			21,053			22,119			21,516			20,787			21,947			24,733			24,760
Total noninterest-bearing deposits		6,636			6,943			6,949			7,294			7,094			7,012			7,411			7,892			8,274			8,362			7,988			7,407
Other liabilities (c)		4,553			4,449			4,218			4,644			4,223			4,310			4,294			4,525			4,357			4,704			4,492			4,560
Total liabilities		29,439			29,647			29,656			31,972			32,708			32,375			33,824			33,933			33,418			35,013			37,213			36,727
Shareholders’ equity		3,742			3,796			3,880			3,991			4,207			4,134			4,155			4,224			4,269			4,351			4,458			4,745
Total liabilities and shareholders’ equity	$	33,181		$	33,443		$	33,536		$	35,963		$	36,915		$	36,509		$	37,979		$	38,157		$	37,687		$	39,364		$	41,671		$	41,472

(a) Amounts and yields exclude adjustments for fair value and the related deferred tax effect required by SFAS No. 115. Prior periods calculated on a continuing operations basis even though the balance sheet, in accordance with GAAP, is not restated for discontinued operations.

(b) Balances include Federal Reserve Stock, Preferred Stock, Loan Securitizations and other Investment Securities.

(c) Includes assets and liabilities of discontinued operations.

Page 4

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 12 Quarter Trend

Interest Yields/Rates (a)

	2004								2005								2006
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr
Average Rates:
Investment Securities:
Fixed rate	4.46	%	4.32	%	4.20	%	4.22	%	4.34	%	4.34	%	4.31	%	4.30	%	4.39	%	4.41	%	4.37	%	4.37	%
Adjustable rate	3.26		3.23		3.17		3.37		3.57		3.71		3.81		3.93		4.21		4.27		4.31		4.45
Floating rate	1.74		1.77		2.19		2.60		3.17		3.64		4.03		4.52		5.02		5.36		5.67		5.67
Obligations of states and political subdivisions	7.35		7.26		7.10		7.02		7.13		6.97		6.80		6.69		6.88		6.70		6.59		6.52
Other (b)	NM		NM		NM		NM		NM		NM		NM		NM		NM		NM		NM		NM
Total investment securities	3.88		3.81		3.78		3.83		4.03		4.12		4.25		4.48		4.78		4.94		5.10		5.14
Trading account securities	2.50		2.09		1.91		1.96		1.75		2.24		2.21		2.16		1.86		2.19		2.32		2.41
Money market assets	2.40		2.49		2.74		2.90		2.93		2.98		3.11		3.67		3.80		4.12		4.20		4.33
Loans, net of unearned discount	4.12		4.20		4.06		4.60		4.91		6.01		5.60		5.85		6.17		6.51		6.97		7.02
Total interest-earning assets	3.73	%	3.75	%	3.69	%	3.86	%	4.05	%	4.45	%	4.45	%	4.70	%	4.97	%	5.15	%	5.28	%	5.39	%
Deposits in domestic offices	0.89	%	0.89	%	1.06	%	1.36	%	1.64	%	1.98	%	2.39	%	2.79	%	3.18	%	3.61	%	4.06	%	3.96	%
Deposits in foreign offices	1.66		1.46		1.71		2.08		2.18		2.43		2.52		3.13		3.24		3.59		3.44		3.72
Total interest-bearing deposits	1.19		1.10		1.29		1.63		1.85		2.16		2.44		2.92		3.20		3.60		3.86		3.88
Federal funds purchased and securities under repurchase agreements	0.83		0.81		1.12		1.55		2.05		2.46		3.19		3.62		3.74		4.75		4.45		4.67
Other funds borrowed	3.39		3.64		4.89		4.09		1.97		3.00		3.34		3.96		4.34		4.80		5.23		5.02
Long term debt	3.63		3.60		3.72		3.94		4.28		4.53		5.01		5.47		5.90		6.21		6.53		6.42
Funding of disc ops (c)	NM		NM		NM		NM		NM		NM		NM		NM		NM		NM		NM		NM
Total interest-bearing liabilities	1.82	%	1.72	%	1.88	%	2.21	%	2.47	%	2.77	%	3.07	%	3.54	%	3.85	%	4.29	%	4.40	%	4.47	%
Rates
Yield on total interest-earning assets	3.73	%	3.75	%	3.69	%	3.86	%	4.05	%	4.45	%	4.45	%	4.70	%	4.97	%	5.15	%	5.28	%	5.39	%
Cost of funds supporting interest-earning assets	1.57	%	1.47	%	1.59	%	1.86	%	2.11	%	2.36	%	2.64	%	2.89	%	3.04	%	3.44	%	3.64	%	3.83	%
Net interest Margin:
Taxable equivalent basis	2.16	%	2.28	%	2.10	%	2.00	%	1.94	%	2.09	%	1.81	%	1.81	%	1.93	%	1.71	%	1.64	%	1.56	%
Without taxable equivalent increments	2.08	%	2.21	%	2.02	%	1.93	%	1.86	%	2.01	%	1.74	%	1.74	%	1.86	%	1.65	%	1.58	%	1.51	%

(a) Amounts and yields exclude adjustments for fair value and the related deferred tax effect required by SFAS No. 115. Prior periods calculated on a continuing operations basis even though the balance sheet, in accordance with GAAP, is not restated for discontinued operations.

(b) Yields are not meaningful.

(c) Rates are not meaningful as the reduction in interest expense represents the cost of allocated funding of the assets of discontinued operations.

Page 5

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 12 Quarter Trend

OPERATING EXPENSE

	2004								2005								2006
(dollar amounts in millions)	1st Qtr (b)		2nd Qtr (c)		3rd Qtr		4th Qtr (d)		1st Qtr (e)		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr (f)		2nd Qtr		3rd Qtr		4th Qtr (g)
Staff:
Compensation	$	229	$	233	$	237	$	258	$	243	$	248	$	254	$	260	$	268	$	270	$	279	$	309
Incentive (a)		100		88		83		120		105		114		124		133		170		145		160		248
Employee benefits		54		52		51		51		66		61		67		65		76		71		73		78
Total staff		383		373		371		429		414		423		445		458		514		486		512		635
Professional, legal and other purchased services		87		98		90		108		99		109		113		123		115		125		131		145
Distribution and servicing		79		80		80		80		81		90		100		106		115		126		122		140
Net occupancy		55		78		57		42		58		57		59		59		59		58		51		68
Equipment		44		42		41		41		41		43		44		46		44		44		42		49
Business development		21		22		20		23		20		24		23		28		25		28		25		36
Communications		22		21		19		20		25		18		19		21		23		22		20		20
Amortization of intangible assets		4		5		4		6		6		7		7		7		7		7		7		23
Other		48		29		27		51		44		43		47		55		52		62		53		76
Total operating expense	$	743	$	748	$	709	$	800	$	788	$	814	$	857	$	903	$	954	$	958	$	963	$	1,192
Employees at period-end		15,600		15,500		15,400		15,500		15,700		16,000		16,700		16,500		16,600		16,700		16,700		16,800

(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 of 2004. It totaled $6 million, $6 million, $7 million and $6 million for each of the quarters of 2005. It totaled $11 million for the first quarter of 2006, including $3 million to Mellon’s former chairman and chief executive officer, pursuant to his employment agreement, $9 million for the second quarter of 2006, $8 million for both the 3rd quarter and the 4th quarter of 2006.

(b) The first quarter of 2004 includes a pre-tax charge of $19 million associated with a writedown of two small businesses, 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 the writedown of a small business (see footnote b).

(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.

(g) The fourth quarter of 2006 includes $26 million in severance, $16 million of impairment charges, $11 million in merger-related expenses and $6 million in additional occupancy reserves.

Page 6

MELLON FINANCIAL CORPORATION

ASSETS UNDER MANAGEMENT/ ADMINISTRATION OR CUSTODY - 12 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			2nd Qtr			3rd Qtr			4th Qtr
Market value of assets under management at period end
Institutional	$	421		$	421		$	419		$	443		$	463		$	469		$	490		$	501		$	527		$	585		$	607		$	667
Mutual Funds		200			199			191			200			203			205			212			216			214			219			244			251
Private Client		58			59			60			64			63			64			64			64			67			66			67			77
Total market value of assets under management		679			679			670			707			729			738			766			781			808			870			918			995
Composition of assets under management at period end
Equity		36	%		36	%		37	%		39	%		37	%		37	%		37	%		37	%		37	%		35	%		35	%		41	%
Fixed Income		20	%		21	%		20	%		20	%		20	%		19	%		18	%		18	%		19	%		21	%		20	%		19	%
Money Market		24	%		22	%		21	%		21	%		19	%		20	%		20	%		20	%		19	%		20	%		21	%		19	%
Securities lending cash collateral		11	%		12	%		13	%		12	%		15	%		16	%		16	%		15	%		15	%		13	%		14	%		13	%
Overlay and alternative investments		9	%		9	%		9	%		8	%		9	%		8	%		9	%		10	%		10	%		11	%		10	%		8	%
Total		100	%		100	%		100	%		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		$	96		$	96		$	113
Money Market Funds		58			58			56			51			49			54			58			58			58			59			63			65
Fixed Income Funds		34			32			32			31			30			31			30			31			29			29			30			31
Nonproprietary		12			11			13			14			15			16			19			19			14			17			15			20
Total managed mutual funds fee revenue		176			179			178			183			179			188			200			201			194			201			204			229
Average assets of proprietary mutual funds
Equity Funds	$	48		$	51		$	50		$	53		$	54		$	54		$	57		$	57		$	59		$	60		$	60		$	65
Money Market Funds		96			96			91			87			85			90			96			100			99			101			110			120
Fixed Income Funds		25			23			23			22			22			22			21			21			21			21			21			21
Total average assets of proprietary mutual funds		169			170			164			162			161			166			174			178			179			182			191			206
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		$	4,213		$	4,380		$	4,491
Total Assets
Managed	$	679		$	679		$	670		$	707		$	729		$	738		$	766		$	781		$	808		$	870		$	918		$	995
Administration/Custody (a)		2,824			2,856			2,978			3,233			3,293			3,450			3,777			3,908			4,125			4,213			4,380			4,491
Total	$	3,503		$	3,535		$	3,648		$	3,940		$	4,022		$	4,188		$	4,543		$	4,689		$	4,933		$	5,083		$	5,298		$	5,486

(a) Excludes assets of $310 billion at June 30, 2005, $328 billion at Sept. 30, 2005, $333 billion at Dec. 31, 2005, $359 billion at March 31, 2006, $364 billion at June 30, 2006, $376 billion at Sept. 30, 2006 and $393 billion at Dec. 31, 2006 that we manage and are also under administration or custody. These assets are included in assets under management.

Page 7

MELLON FINANCIAL CORPORATION

ASSETS UNDER MANAGEMENT NET FLOWS - 12 Quarter Trend

	2004												2005											2006
(dollar amounts in billions )	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr		4th Qtr			1st Qtr			2nd Qtr			3rd Qtr		4th Qtr
Market value of assets under management at beginning of period	$	657		$	679		$	679		$	670		$	707		$	729		$	738	$	766		$	781		$	808		$	870	$	918
Net Flows
Long-term		6			—			2			8			5			(1	)		9		7			11			11			6		10
Money market		6			(6	)		(19	)		(3	)		6			—			4		4			(3	)		10			19		3
Securities lending		9			4			5			1			21			9			2		(3	)		1			(4	)		7		1
Total net inflows		21			(2	)		(12	)		6			32			8			15		8			9			17			32		14
Net Market appreciation		7			—			(3	)		30			(10	)		1			13		6			18			(2	)		16		36
Acquisitions/divestitures		(6	)		2			6			1			—			—			—		1			—			47			—		27
Market value of assets under management at end of period	$	679		$	679		$	670		$	707		$	729		$	738		$	766	$	781		$	808		$	870		$	918	$	995

Page 8

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

MELLON ASSET MANAGEMENT - 12 Quarter Trend

(dollar amounts in millions unless otherwise noted; 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			2nd Qtr			3rd Qtr			4th Qtr (a)
Revenue:
Investment management
Mutual funds		176			179			177			183			179			187			200			201			194			201			204			228
Institutional clients		99			97			98			115			122			129			133			136			158			170			196			246
Performance fees		39			17			11			60			27			26			41			77			58			48			56			196
Private clients		17			18			19			20			20			21			22			23			24			26			25			28
Total investment management		331			311			305			378			348			363			396			437			434			445			481			698
Distribution and service		66			67			68			68			71			74			82			90			98			108			107			102
Institutional trust and custody		16			16			15			15			15			17			15			15			17			16			16			19
Other fee revenue		3			(4	)		(1	)		5			2			(2	)		3			(2	)		9			(4	)		7			19
Total fee and other revenue		416			390			387			466			436			452			496			540			558			565			611			838
Net interest revenue (expense)		(6	)		(5	)		(6	)		(5	)		(4	)		(6	)		(6	)		(4	)		(4	)		(10	)		(10	)		(18	)
Total revenue		410			385			381			461			432			446			490			536			554			555			601			820
Amortization of intangible assets		2			2			2			3			3			4			3			3			3			3			3			8
Other operating expenses		294			285			287			347			321			335			357			372			392			396			412			537
Total operating expenses		296			287			289			350			324			339			360			375			395			399			415			545
Income from continuing operations before taxes (benefits)		114			98			92			111			108			107			130			161			159			156			186			275
Income taxes (benefits)		40			35			29			38			39			38			42			57			52			50			60			90
Net income (loss)	$	74		$	63		$	63		$	73		$	69		$	69		$	88		$	104		$	107		$	106		$	126		$	185
Average loans	$	7		$	7		$	7		$	—		$	—		$	—		$	—		$	—		$	4		$	—		$	—		$	—
Average assets	$	1,979		$	1,980		$	1,995		$	2,114		$	1,976		$	1,987		$	1,994		$	1,958		$	1,990		$	2,362		$	2,518		$	3,096
Average deposits	$	6		$	11		$	17		$	17		$	19		$	8		$	10		$	14		$	13		$	8		$	27		$	21
Average common equity	$	778		$	780		$	806		$	857		$	966		$	966		$	966		$	966		$	997		$	997		$	997		$	997
Average Tier I preferred equity	$	441		$	447		$	456		$	469		$	476		$	476		$	476		$	476		$	399		$	399		$	399		$	399
Market value of assets under management at period end (in billions) (b),(c),(d)	$	568		$	565		$	550		$	585		$	587		$	587		$	612		$	629		$	653		$	711		$	751		$	824
Market value of assets under administration or custody at period end (in billions)	$	7		$	6		$	8		$	8		$	9		$	8		$	3		$	3		$	3		$	3		$	3		$	3
Return on common equity		38	%		33	%		31	%		34	%		29	%		29	%		37	%		43	%		44	%		42	%		50	%		74	%
Pretax operating margin (GAAP)		28	%		25	%		24	%		24	%		25	%		24	%		27	%		30	%		29	%		28	%		31	%		34	%
Adjusted pretax operating margin (e)		34	%		32	%		31	%		29	%		31	%		30	%		33	%		38	%		36	%		36	%		39	%		40	%
Employees at period-end		2,500			2,500			2,600			2,600			2,600			2,600			2,600			2,600			2,600			2,600			2,600			2,700

(a) Includes $6 million of severance expense as well as $5 million of impairment related to the sale of HBV Alternative Investment Strategies.

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

(c) Includes assets of $47 billion at June 30, 2006, $46 billion at Sept. 30, 2006 and $47 billion at Dec. 31, 2006 managed by WestLB Mellon Asset Management (a 50:50 joint venture).

(d) Reflects the June 30, 2006 transfer of $8 billion of securities lending cash collateral to the Asset Servicing Sector.

(e) Pretax margin adjusted for Distribution and servicing expense netted against revenue.

Note: In the fourth quarter of 2006, our asset administration business in Brazil was moved to this sector from Business Exits in the Other sector. All periods have been restated.

Page 9

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

PRIVATE WEALTH MANAGEMENT - 12 Quarter Trend

(dollar amounts in millions unless otherwise noted; 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			2nd Qtr			3rd Qtr			4th Qtr (a)
Revenue:
Investment management		74			75			74			77			81			80			83			87			90			92			93			99
Institutional trust and custody		2			2			3			2			3			2			3			2			3			2			3			2
Other fee revenue		7			6			4			5			5			5			5			6			5			6			4			5
Total fee and other revenue		83			83			81			84			89			87			91			95			98			100			100			106
Net interest revenue (expense)		75			77			76			74			80			79			77			76			74			77			77			77
Total revenue		158			160			157			158			169			166			168			171			172			177			177			183
Credit quality expense		—			—			—			1			—			—			—			—			—			—			—			—
Amortization of intangible assets		1			1			1			2			1			1			1			1			1			1			1			1
Other operating expenses		85			87			87			91			90			91			95			99			102			104			105			111
Total operating expenses		86			88			88			93			91			92			96			100			103			105			106			112
Income from continuing operations before taxes (benefits)		72			72			69			64			78			74			72			71			69			72			71			71
Income taxes (benefits)		25			26			22			21			28			26			23			26			22			24			23			23
Net income (loss)	$	47		$	46		$	47		$	43		$	50		$	48		$	49		$	45		$	47		$	48		$	48		$	48
Average loans	$	4,228		$	4,333		$	4,345		$	4,449		$	4,506		$	4,623		$	4,651		$	4,563		$	4,615		$	4,688		$	4,669		$	4,762
Average assets	$	8,439		$	8,822		$	9,100		$	9,226		$	9,431		$	9,462		$	10,062		$	10,860		$	10,279		$	10,395		$	10,544		$	10,760
Average deposits	$	7,157		$	7,555		$	7,819		$	7,957		$	8,295		$	8,286		$	8,846		$	9,474		$	8,824		$	8,865		$	8,827		$	8,936
Average common equity	$	687		$	686		$	694		$	697		$	571		$	571		$	571		$	571		$	553		$	553		$	553		$	553
Average Tier I preferred equity	$	219		$	218		$	216		$	214		$	215		$	215		$	215		$	215		$	184		$	184		$	184		$	184
Market value of total client assets at period end (in billions) (b)	$	76		$	76		$	76		$	78		$	77		$	78		$	82		$	86		$	89		$	87		$	90		$	95
Return on common equity		27	%		27	%		27	%		24	%		35	%		34	%		34	%		32	%		34	%		35	%		34	%		35	%
Pretax operating margin		46	%		45	%		44	%		41	%		46	%		45	%		43	%		41	%		40	%		41	%		40	%		39	%
Employees at period-end		1,900			1,900			1,800			1,800			1,900			1,900			1,900			1,900			1,900			2,000			2,000			2,000

(a) Includes $1 million of severance expense.

(b) 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 of 2004, $49 billion, $50 billion, $51 billion and $53 billion in the first, second, third and fourth quarters of 2005; and $55 billion, $54 billion, $55 billion and $59 billion in the first, second, third and fourth quarters of 2006, respectively.

Page 10

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

ASSET SERVICING - 12 Quarter Trend

(dollar amounts in millions unless otherwise noted; 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			2nd Qtr			3rd Qtr			4th Qtr (a)
Revenue:
Institutional trust and custody		120			118			113			127			132			141			154			171			174			187			188			196
Securities lending revenue		18			24			16			18			24			33			25			26			30			38			26			26
Other fee revenue		73			67			53			59			68			67			70			72			83			96			77			89
Total fee and other revenue		211			209			182			204			224			241			249			269			287			321			291			311
Net interest revenue (expense)		14			18			17			20			19			21			22			20			26			27			29			24
Total revenue		225			227			199			224			243			262			271			289			313			348			320			335
Amortization of intangible assets		1			2			1			1			2			2			2			3			3			3			2			14
Other operating expenses		173			168			167			183			186			198			215			235			242			258			255			278
Total operating expenses		174			170			168			184			188			200			217			238			245			261			257			292
Income from continuing operations before taxes (benefits)		51			57			31			40			55			62			54			51			68			87			63			43
Income taxes (benefits)		18			20			10			14			20			22			17			18			22			28			21			14
Net income (loss)	$	33		$	37		$	21		$	26		$	35		$	40		$	37		$	33		$	46		$	59		$	42		$	29
Average loans	$	99		$	61		$	16		$	3		$	(25	)	$	1		$	(1	)	$	(20	)	$	(1	)	$	(30	)	$	(1	)	$	—
Average assets	$	7,087		$	6,824		$	7,021		$	8,036		$	8,211		$	8,117		$	9,048		$	8,484		$	8,376		$	9,248		$	10,159		$	10,523
Average deposits	$	5,460		$	5,414		$	5,764		$	6,496		$	7,010		$	6,859		$	7,753		$	7,077		$	7,111		$	7,570		$	8,737		$	8,975
Average common equity	$	606		$	599		$	583		$	609		$	482		$	482		$	482		$	482		$	551		$	551		$	551		$	551
Average Tier I preferred equity	$	136		$	135		$	132		$	128		$	125		$	125		$	125		$	125		$	132		$	132		$	132		$	132
Market value of assets under management at period end (in billions) (b),(c)	$	64		$	68		$	73		$	74		$	95		$	104		$	106		$	103		$	104		$	108		$	115		$	116
Market value of assets under administration or custody at period end (in billions) (d)	$	2,793		$	2,826		$	2,946		$	3,199		$	3,259		$	3,416		$	3,746		$	3,874		$	4,091		$	4,180		$	4,344		$	4,453
Return on common equity		22	%		25	%		14	%		17	%		30	%		33	%		30	%		27	%		34	%		42	%		31	%		21	%
Pretax operating margin		23	%		25	%		15	%		18	%		23	%		24	%		20	%		18	%		22	%		25	%		20	%		13	%
MEMO:
Total joint venture revenue (e)	$	81		$	82		$	74		$	84		$	93		$	101		$	102		$	107		$	119		$	149		$	140		$	143
Securities on Loan (f)	$	100		$	95		$	100		$	115		$	150		$	160		$	165		$	161		$	178		$	187		$	206		$	214
Employees at period-end		3,600			3,600			3,600			3,500			3,700			3,800			4,500			4,500			4,500			4,500			4,600			4,600

(a) Includes $11 million of impairment charges and $6 million of severance expense.

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

(c) Reflects the June 30, 2006 transfer of $8 billion securities lending cash collateral from Mellon Asset Management Sector.

(d) Excludes assets of $310 billion at June 30, 2005, $328 billion at Sept. 30, 2005, $333 billion at Dec. 31, 2005, $359 billion at Mar. 31, 2006, $364 billion at June 30, 2006, $376 billion at Sept. 30, 2006 and $393 billion at Dec. 31, 2006 that we manage and are also under administration or custody. These assets are included in the Corporation’s assets under management.

(e) Restated to reflect the acquisition of the remaining 50% interest of Russell Mellon, previously a joint venture.

(f) Represents the total dollar amount of securities on loan, both cash and non-cash, at period end by the Corporation.

Page 11

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

PAYMENT SOLUTIONS & INVESTOR SERVICES - 12 Quarter Trend

(dollar amounts in millions unless otherwise noted; 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			2nd Qtr			3rd Qtr			4th Qtr (a)
Revenue:
Payment solutions & investor services		135			139			124			129			123			129			111			119			115			119			113			113
Other fee revenue		2			2			3			5			7			4			4			6			5			6			5			6
Total fee and other revenue		137			141			127			134			130			133			115			125			120			125			118			119
Net interest revenue (expense)		31			30			29			32			36			33			34			38			41			43			42			44
Total revenue		168			171			156			166			166			166			149			163			161			168			160			163
Amortization of intangible assets		—			—			—			—			—			—			1			—			—			—			1			—
Other operating expenses		118			124			113			129			126			126			119			127			124			130			124			135
Total operating expenses		118			124			113			129			126			126			120			127			124			130			125			135
Income from continuing operations before taxes (benefits)		50			47			43			37			40			40			29			36			37			38			35			28
Income taxes (benefits)		18			17			14			12			15			14			9			13			12			13			12			10
Net income (loss)	$	32		$	30		$	29		$	25		$	25		$	26		$	20		$	23		$	25		$	25		$	23		$	18
Average loans	$	71		$	117		$	106		$	105		$	95		$	99		$	87		$	93		$	83		$	91		$	85		$	181
Average assets	$	6,628		$	6,862		$	6,934		$	7,693		$	7,816		$	7,145		$	6,964		$	7,169		$	7,302		$	7,105		$	6,831		$	7,333
Average deposits	$	5,885		$	6,139		$	6,186		$	6,887		$	6,751		$	6,406		$	6,210		$	6,540		$	6,738		$	6,515		$	6,211		$	6,761
Average common equity	$	308		$	287		$	288		$	292		$	315		$	315		$	315		$	315		$	266		$	266		$	266		$	266
Average Tier I preferred equity	$	64		$	64		$	64		$	63		$	75		$	75		$	75		$	75		$	64		$	64		$	64		$	64
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		42	%		43	%		41	%		33	%		32	%		33	%		26	%		29	%		37	%		39	%		32	%		28	%
Pretax operating margin		30	%		29	%		28	%		22	%		24	%		24	%		20	%		22	%		23	%		23	%		21	%		17	%
Employees at period-end		3,500			3,500			3,400			3,500			3,500			3,500			3,400			3,400			3,300			3,300			3,300			3,300

(a) Includes $6 million of severance expense.

Note: In the fourth quarter of 2006, a segment of our Working Capital Solutions business was moved from this sector to Business Exits in the Other sector based upon our intention not to renew certain contracts with the agencies of the Federal government in 2007.

Page 12

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

OTHER - 12 Quarter Trend

(dollar amounts in millions unless otherwise noted; 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)			2nd Qtr			3rd Qtr			4th Qtr (f)
Revenue:
Institutional trust and custody		—			1			1			1			—			—		—			—			—			1			—			1
Payment solutions & investor services		10			10			9			9			11			12		11			8			6			5			6			5
Other fee revenue		148			69			55			56			250			69		63			60			59			49			47			41
Total fee and other revenue		158			80			65			66			261			81		74			68			65			55			53			47
Net interest revenue (expense)		—			1			(1	)		(1	)		(13	)		1		(10	)		(9	)		(12	)		(20	)		(15	)		(13	)
Total revenue		158			81			64			65			248			82		64			59			53			35			38			34
Credit quality expense		(7	)		(2	)		(1	)		(5	)		(2	)		3		12			4			1			(3	)		(1	)		5
Amortization of intangible assets		—			—			—			—			—			—		—			—			—			—			—			—
Other operating expenses		69			79			51			44			59			57		64			63			87			63			60			108
Total operating expenses		69			79			51			44			59			57		64			63			87			63			60			108
Income from continuing operations before taxes (benefits)		96			4			14			26			191			22		(12	)		(8	)		(35	)		(25	)		(21	)		(79	)
Income taxes (benefits)		34			—			5			9			70			8		(4	)		(4	)		(3	)		(10	)		—			(97	)
Net income (loss)	$	62		$	4		$	9		$	17		$	121		$	14	$	(8	)	$	(4	)	$	(32	)	$	(15	)	$	(21	)	$	18
Average loans	$	2,487		$	2,259		$	2,067		$	2,077		$	1,909		$	1,867	$	1,882		$	1,718		$	1,278		$	1,123		$	1,099		$	1,157
Average assets	$	7,239		$	6,959		$	6,637		$	7,099		$	7,849		$	8,109	$	8,383		$	8,090		$	8,160		$	8,613		$	9,987		$	8,330
Average deposits	$	719		$	657		$	509		$	726		$	960		$	763	$	747		$	800		$	883		$	1,126		$	4,103		$	1,858
Average common equity	$	1,390		$	1,401		$	1,451		$	1,528		$	1,844		$	1,753	$	1,775		$	1,780		$	1,790		$	1,815		$	1,945		$	2,306
Average Tier I preferred equity	$	166		$	147		$	142		$	173		$	147		$	146	$	141		$	133		$	243		$	236		$	293		$	624
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			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			n/m			n/m			n/m
Employees at period-end (g)		4,100			4,000			4,000			4,100			4,000			4,200		4,300			4,100			4,300			4,300			4,200			4,200

(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 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 the writedown of a small business (see footnote a).

(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) Includes $7 million in severance, $11 million in merger-related expenses and $6 million in occupancy expenses as well as $74 million of tax benefits primarily related to a reversal of deferred tax liabilities due to management’s decision to indefinitely reinvest earnings of certain foreign subsidiaries in accordance with APB opinion No. 23.

(g) Primarily relates to employees in Technology, Finance and Human Resources supporting the business sectors; the cost of these employees are fully allocated to the business sectors.

Note: In the fourth quarter of 2006: Mellon signed an agreement to sell its venture capital group, Mellon Ventures, and applied discontinued operations accounting to this business, previously reported in this sector; a segment of our Working Capital Solutions business was moved from the Payment Solutions & Investor Services sector to Business Exits in this sector; our asset administration business in Brazil was moved from this sector to Mellon Asset Management sector. All periods have been restated.

n/m - not meaningful

Page 13

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

(dollar amounts in millions unless otherwise noted; presented on an FTE basis)	Mellon Asset Management									Private Wealth Management									Asset Servicing
	2006			2005			2004			2006			2005			2004			2006			2005			2004
Revenue:
Investment management		1,700			1,373			1,198			374			331			300			—			—			—
Performance fees		358			171			127			—			—			—			—			—			—
Total investment management		2,058			1,544			1,325			374			331			300			—			—			—
Distribution and service fees		415			317			269			—			—			—			—			—			—
Institutional trust and custody		68			62			62			10			10			9			745			598			478
Securities lending revenue		—			—			—			—			—			—			120			108			76
Payment solutions & investor services		—			—			—			—			—			—			—			—			—
Other fee revenue		31			1			3			20			21			22			345			277			252
Total fee and other revenue		2,572			1,924			1,659			404			362			331			1,210			983			806
Net interest revenue (expense)		(42	)		(20	)		(22	)		305			312			302			106			82			69
Total revenue		2,530			1,904			1,637			709			674			633			1,316			1,065			875
Credit quality expense		—			—			—			—			—			1			—			—			—
Amortization of intangible assets		17			13			9			4			4			5			22			9			5
Other operating expenses		1,737			1,385			1,213			422			375			350			1,033			834			691
Total operating expenses		1,754			1,398			1,222			426			379			355			1,055			843			696
Income from continuing operations before taxes (benefits)		776			506			415			283			295			277			261			222			179
Income taxes (benefits)		252			176			142			92			103			94			85			77			62
Income from continuing operations		524			330			273			191			192			183			176			145			117
Income from discontinued operations after-tax		—			—			—			—			—			—			—			—			—
Net income (loss)	$	524		$	330		$	273		$	191		$	192		$	183		$	176		$	145		$	117
Average loans	$	1		$	—		$	5		$	4,684		$	4,586		$	4,339		$	(8	)	$	(11	)	$	45
Average assets	$	2,494		$	1,979		$	2,017		$	10,496		$	9,958		$	8,898		$	9,584		$	8,467		$	7,244
Average deposits	$	17		$	13		$	13		$	8,864		$	8,729		$	7,624		$	8,105		$	7,176		$	5,785
Average common equity	$	997		$	966		$	805		$	553		$	571		$	691		$	551		$	482		$	599
Average Tier I preferred equity	$	399		$	476		$	453		$	184		$	215		$	217		$	132		$	125		$	133
Market value of assets under management at period end (in billions)	$	824		$	629		$	585		$	55		$	49		$	48		$	116		$	103		$	74
Market value of assets under administration or custody at period end (in billions)	$	3		$	3		$	8		$	35		$	31		$	26		$	4,453		$	3,874		$	3,199
Return on common equity		53	%		34	%		34	%		34	%		34	%		26	%		32	%		30	%		20	%
Pretax operating margin		31	%		27	%		25	%		40	%		44	%		44	%		20	%		21	%		20	%
Employees at period-end		2,700			2,600			2,600			2,000			1,900			1,800			4,600			4,500			3,500

Note: See pages 9-13 for revenue/expense items impacting respective sector results.

Page 14

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

(dollar amounts in millions unless otherwise noted; presented on an FTE basis)	Payment Solutions & Investor Services									Other									Consolidated Results
	2006			2005			2004			2006			2005			2004			2006			2005			2004
Revenue:
Investment management		—			—			—			—			—			—			2,074			1,704			1,498
Performance fees		—			—			—			—			—			—			358			171			127
Total investment management		—			—			—			—			—			—			2,432			1,875			1,625
Distribution and service		—			—			—			—			—			—			415			317			269
Institutional trust and custody		—			—			—			2			—			3			825			670			552
Securities lending revenue		—			—			—			—			—			—			120			108			76
Payment solutions & investor services		460			482			527			22			42			38			482			524			565
Other fee revenue		22			21			12			196			442			328			614			762			617
Total fee and other revenue (a)		482			503			539			220			484			369			4,888			4,256			3,704
Net interest revenue (expense) (b)		170			141			122			(60	)		(31	)		(1	)		479			484			470
Total revenue (c)		652			644			661			160			453			368			5,367			4,740			4,174
Credit quality expense		—			—			—			2			17			(15	)		2			17			(14	)
Amortization of intangible assets		1			1			—			—			—			—			44			27			19
Other operating expenses		513			498			484			318			243			243			4,023			3,335			2,981
Total operating expenses		514			499			484			318			243			243			4,067			3,362			3,000
Income from continuing operations before taxes (benefits)		138			145			177			(160	)		193			140			1,298			1,361			1,188
Income taxes (benefits) (c)		47			51			61			(110	)		70			48			366			477			407
Income (loss) from continuing operations before cumulative effect of accounting change		91			94			116			(50	)		123			92			932			884			781
Income from discontinued operations after-tax		—			—			—			—			—			—			(34	)		(102	)		15
Net income (loss)	$	91		$	94		$	116		$	(50	)	$	123		$	92		$	898		$	782		$	796
Average loans (d)	$	110		$	93		$	100		$	1,164		$	1,843		$	2,222		$	6,738		$	7,194		$	7,307
Average assets (e)	$	7,142		$	7,271		$	7,031		$	8,777		$	8,108		$	6,983		$	39,872		$	37,304		$	34,003
Average deposits	$	6,556		$	6,476		$	6,276		$	2,000		$	816		$	652		$	25,542		$	23,210		$	20,350
Average common equity	$	266		$	315		$	294		$	1,965		$	1,787		$	1,443		$	4,332		$	4,121		$	3,832
Average Tier I preferred equity	$	64		$	75		$	64		$	350		$	142		$	157		$	1,129		$	1,033		$	1,024
Market value of assets under management at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	995		$	781		$	707
Market value of assets under administration or custody at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	4,491		$	3,908		$	3,233
Return on common equity		34	%		30	%		44	%		n/m			n/m			n/m			22	%		21	%		20	%
Pretax operating margin		21	%		23	%		28	%		n/m			n/m			n/m			24	%		29	%		28	%
Pretax operating margin (f)																				26	%		28	%		27	%
Employees at period-end		3,300			3,400			3,500			4,200			4,100			4,100			16,800			16,500			15,500

(a) Consolidated results include FTE impact of $36 million, $41 million and $42 million for 2006, 2005 and 2004, respectively.

(b) Consolidated results include FTE impact of $16 million, $18 million and $17 million for 2006, 2005 and 2004, respectively.

(c) Consolidated results include FTE impact of $52 million, $59 million and $59 million for 2006, 2005 and 2004, respectively.

(d) Consolidated average loans include average loans from discontinued operations of $787 million, $683 million and $596 million for 2006, 2005 and 2004, respectively.

(e) Consolidated average assets include average assets of discontinued operations of $1,379 million, $1,521 million and $1,830 million for 2006, 2005 and 2004, respectively.

(f) Excludes footnote items listed on Consolidated Results -12 Quarter Trend page.

Note: See pages 9-13 for revenue/expense items impacting respective sector results.

n/m - not meaningful

Page 15

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 12 Quarter Trend

NONPERFORMING ASSETS

	2004												2005												2006
(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	$	48		$	11		$	17		$	10		$	9		$	7		$	7		$	1		$	1		$	—		$	1		$	—
Personal		2			3			3			4			4			4			3			2			2			2			2			1
Commercial real estate		1			—			—			—			—			—			—			—			—			—			—			—
Lease finance assets		—			—			—			15			15			15			27			13			10			12			1			1
Total nonperforming loans		51			14			20			29			28			26			37			16			13			14			4			2
Total acquired property		—			1			1			—			—			—			—			—			3			—			—			2
Total nonperforming assets	$	51		$	15		$	21		$	29		$	28		$	26		$	37		$	16		$	16		$	14		$	4		$	4
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	%		0.20	%		0.07	%		0.04	%
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	%		0.44	%		0.12	%		0.12	%(a)

(a) Preliminary

Page 16

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 12 Quarter Trend

PROVISION AND RESERVE FOR CREDIT EXPOSURE

	2004												2005												2006
(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
Reserve Activity:
Loan losses		103			94			96			98			98			87			87			80			63			60			58			55
Unfunded commitments		75			77			73			71			67			77			81			77			78			82			81			80
Reserve at beginning of period	$	178		$	171		$	169		$	169		$	165		$	164		$	168		$	157		$	141		$	142		$	139		$	135
Total credit losses		—			(2	)		(1	)		(1	)		(1	)		—			(24	)		(14	)		—			(1	)		—			—
Total recoveries		—			2			1			2			1			1			1			1			—			1			—			—
Sub-total - net credit recoveries (losses)	$	—		$	—		$	—		$	1		$	—		$	1		$	(23	)	$	(13	)	$	—		$	—		$	—		$	—
Credit losses on loans transferred to held for sale		—			—			—			—			—			—			—			—			—			—			—			—
Total net credit recoveries (losses)	$	—		$	—		$	—		$	1		$	—		$	1		$	(23	)	$	(13	)	$	—		$	—		$	—		$	—
Impact of disposals and acquisitions		—			—			—			—			—			—			—			—			—			—			—			—
Securitizations		—			(2	)		—			(1	)		—			—			—			—			—			—			—			—
Loss on sale of commitments		—			—			—			—			—			—			—			—			—			—			—			—
Provision for credit losses		(7	)		(2	)		(1	)		(4	)		(2	)		3			12			4			1			(3	)		(1	)		5
Reclass of provision to discontinued operations		—			2			1			—			1			—			—			—			—			—			—			—
Reserves transferred to assets of discontinued operations		—			—			—			—			—			—			—			—			—			—			(3	)		—
Reserves transferred to held for sale		—			—			—			—			—			—			—			(7	)		—			—			—			—
Reserve at end of period	$	171		$	169		$	169		$	165		$	164		$	168		$	157		$	141		$	142		$	139		$	135		$	140
Reserve for loan losses	$	94		$	96		$	98		$	98		$	87		$	87		$	80		$	63		$	60		$	58		$	55		$	56
Reserve for unfunded commitments		77			73			71			67			77			81			77			78			82			81			80			84
Reserve at end of period	$	171		$	169		$	169		$	165		$	164		$	168		$	157		$	141		$	142		$	139		$	135		$	140
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	%		0.84	%		0.93	%		0.94	%
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	%		0.61	%		0.60	%		0.62	%
Annualized net credit losses to average loans		—	%		—	%		—	%		-0.03	%		—	%		—	%		1.23	%		0.77	%		—	%		—	%		—	%		—	%

(a) At period end.

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