425

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) – April 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 April 17, 2007, the Registrant conducted a conference call and webcast with respect to results of operations for first quarter 2007. In conjunction with the conference call and webcast, the Registrant made available on its website beginning on April 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 first quarter 2007 dated April 17, 2007.
99.2	Mellon Financial Corporation – Quarterly Earnings Summary - Appendix – Financial Trends dated April 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: April 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 first quarter 2007 dated April 17, 2007.	Furnished herewith.
99.2	Mellon Financial Corporation – Quarterly Earnings Summary - Appendix – Financial Trends dated April 17, 2007.	Filed herewith.

EX-99.1

Exhibit 99.1

Mellon Financial Corporation

Quarterly Earnings Summary

April 17, 2007

Table of Contents

Revisions to Business Sectors and Income Statement / Balance Sheet Line Items	2
Cautionary Statement / Additional Information	3
First Quarter 2007 Financial Highlights (vs. first quarter 2006)	4
Financial Summary	5
Noninterest Revenue	6
Net Interest Revenue	7
Noninterest Expense	8
First Quarter 2007 Revenue (FTE) and Pre-tax Income (FTE) Mix / Assets Under Management Flows	9
Business Sectors / Asset Management	10
Wealth Management	11
Asset Servicing	12
Issuer Services	13
Treasury Services	14
Other Sector / Income Taxes / Discontinued Operations	15
Junior Subordinated Debentures / Impact of Adoption of FIN No. 48 and FSP No. 13-2 / Merger Agreement with The Bank of New York (BNY)	16
Appendix – Financial Trends	17

All narrative comparisons in this Quarterly Earnings Summary are with the first quarter of 2006 and all information is reported on a continuing operations basis, unless otherwise noted. See page 2 for a discussion of revisions to Business Sectors and Income Statement / Balance Sheet line items.

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 1Q07 Quarterly Earnings Summary

REVISIONS TO BUSINESS SECTORS AND INCOME STATEMENT / BALANCE SHEET LINE ITEMS

As part of the planning process for the integration of Mellon and The Bank of New York after the closing of the proposed merger, during the first quarter of 2007:

• We realigned our business sectors creating the new Issuer Services and Treasury Services sectors and eliminating the Payment Solutions & Investor Services (PS&IS) sector. The Issuer Services sector consists of Mellon Investor Services (stock transfer business), which was previously included in the PS&IS sector. The Treasury Services sector consists of Working Capital Solutions (global cash management) and Mellon Financial Markets (capital markets business), both previously included in the PS&IS sector, as well as Mellon Institutional Banking (large corporate banking), which was previously included in the Other sector. All prior periods have been reclassified for these changes. In addition, we renamed the Mellon Asset Management sector to Asset Management and the Private Wealth Management sector to Wealth Management. There were no changes to the Asset Servicing sector. These changes did not affect the operation of these business lines.

In addition, several new line items have been created on the income statement and balance sheet:

Income statement:

• Securities servicing fees - Asset servicing - formerly Institutional trust and custody revenue.

• Securities servicing fees - Issuer services - formerly included in PS&IS revenue.

• Global payment services - working capital solutions revenue formerly included in PS&IS revenue.

• Foreign exchange and other trading activities - includes earnings on seed capital investments and other trading activities formerly included in Other revenue.

• Asset/investment income - includes equity investment income and other amounts formerly included in Financing-related/equity investment revenue.

• Financing-related fees - includes certain fees formerly included in PS&IS revenue.

• Software expense - formerly included in Equipment; Professional, legal and other purchased services; and Other expense.

• Sub-custodian expenses - formerly included in Professional, legal and other purchased services.

• Communications expense - formerly included telecommunication, postage and delivery expense. Now only represents telecommunication expense.

Balance sheet:

• Trading assets - Includes trading assets, as well as receivables due from counterparties with master netting agreements (“FIN 39 assets”), formerly included in Other assets.

• Federal Reserve Stock - formerly included in Investment securities. Now recorded in Other assets. Related earnings formerly included in Net interest revenue are now included in Other noninterest revenue.

• Other assets- now includes capitalized computer software formerly included in Premises and equipment.

• Other liabilities - formerly included Accrued taxes and other expenses.

• Junior subordinated deferrable interest debentures are now included in Long-term debt.

• Trading account liabilities were formerly included in Other liabilities and are now included in Short-term borrowings.

All prior periods have been reclassified. The reclassifications did not affect the results of operations.

Page - 2

Mellon Financial Corporation 1Q07 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; pipelines for new business in Asset Management, Asset Servicing and Issuer Services; statements with respect to the proposed merger with The Bank of New York, including the expected date for the special meeting to vote on the merger and the expected closing date of the merger with The Bank of New York, expectations with respect to operations after the merger; the expected tax provisioning rate for the second quarter of 2007; 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 April 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. In connection with the proposed transaction, The Bank of New York Mellon Corporation (“Newco”) filed with the SEC a registration statement on Form S-4 containing a preliminary joint proxy statement/prospectus for the shareholders of The Bank of New York Company, Inc. and Mellon, and each of The Bank of New York Company, Inc. and Mellon Financial Corporation will be filing other documents regarding the proposed transaction with the SEC as well. Before making any voting or investment decision, shareholders are urged to read the preliminary joint proxy statement/prospectus regarding the proposed transaction and the definitive joint proxy statement/prospectus when it becomes available, as well as the other documents referred to in the joint proxy statement/prospectus carefully in their entirety because they contain or will contain important information about the proposed transaction. The definitive joint proxy statement/prospectus will be mailed to the shareholders of The Bank of New York Company, Inc. and Mellon Financial Corporation. 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 2007 annual meeting of shareholders, as filed with the SEC on March 19, 2007. 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 2007 annual meeting of shareholders, as filed with the SEC on March 14, 2007. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the preliminary joint proxy statement/prospectus filed with the SEC and will be contained in the joint proxy statement/prospectus when it becomes available.

Page - 3

Mellon Financial Corporation 1Q07 Quarterly Earnings Summary

FIRST QUARTER 2007 FINANCIAL HIGHLIGHTS (vs. first quarter 2006)

	Income after-tax from Continuing Operations				EPS from Continuing Operations
	$ millions		% growth		$		% growth
GAAP*	$	243	26	%	$	.58	23	%
Non-GAAP Adjusted	$	256	25	%	$	.61	22	%

	% of Pre-tax Income		Growth
Business Sectors			Revenue		Pre-tax		Commentary
Asset Management	52	%	23	%	30	%	Market/net flows/acquisitions/positive operating leverage
Wealth Management	18	%	5	%	2	%	+8% Fee revenue growth/+2% net interest revenue/growth initiatives
Asset Servicing	19	%	9	%	14	%	New business/JV growth/positive operating leverage
Issuer Services	4	%	16	%	56	%	Higher ancillary fees/net interest revenue/ positive operating leverage
Treasury Services	7	%	5	%	(1	)%	Increased noninterest and net interest revenue
Total	100	%**	13	%	23	%*

• Assets under management exceeded $1 trillion (record), up 28% versus a 10% increase in the S&P 500

• Net inflows during the quarter totaled $27 billion

• Record level of assets under custody/administration of $4.8 trillion, increased 17%

• 340 bps of positive operating leverage

• Total revenue +13.3%

• Total noninterest expense +9.9%

• Pre-tax margin (FTE) was 26% (27% operating basis*), versus 24% (25% operating basis*) for 1Q06

• Approximately 25% of revenue and 22% of pre-tax income from outside the U.S. compared to 19% and 15% 1Q06*

• Tax rate was 31.2% compared to 32.2% for 1Q06; 2Q07 expected to be approximately 32.5%

• The tangible shareholders’ equity ratio was 5.38% at March 31, 2007 vs. 4.25-5.25% target range

• Repurchased 2.6 million shares during the first quarter of 2007, issued 3.7 million shares in connection with benefit plans

* 1Q07 continuing operations includes $8 million pre-tax ($5 million after-tax) of merger-related expenses and a $12 million pre-tax ($8 million after-tax) litigation reserve charge, together totaling approximately 3 cents per share. 1Q06 continuing operations includes $19 million pre-tax ($12 million after-tax), or 3 cents per share, in connection with payments, awards and benefits for Mellon’s former chairman and chief executive officer, pursuant to his employment agreement. The pre-tax growth rate, pre-tax margin and percentage of pre-tax income from outside the U.S. have been adjusted for these items.

** Excludes the Other sector.

Page - 4

Mellon Financial Corporation 1Q07 Quarterly Earnings Summary

FINANCIAL SUMMARY

Mellon Financial Corporation

Continuing Operations

																1Q07 vs. 1Q06
	2006												2007
(dollar amounts in millions, non-FTE basis unless otherwise noted)	1st Qtr (a)			2nd Qtr			3rd Qtr			4th Qtr (a)			1st Qtr (a)
Noninterest revenue	$	1,120		$	1,158		$	1,164		$	1,413		$	1,280		14	%
Net interest revenue		119			113			119			109			125		4
Total revenue		1,239			1,271			1,283			1,522			1,405		13
Provision for credit losses		1			(3	)		(1	)		5			3		N/M
Total noninterest expense		954			958			963			1,192			1,048		10
Income from continuing operations before income taxes		284			316			321			325			354		24
Provision for income taxes		91			93			103			27			111		N/M
Income from continuing operations	$	193		$	223		$	218		$	298		$	243		26
Return on equity (annualized)		19	%		21	%		20	%		25	%		21	%
Pre-tax operating margin (FTE)		24	%		26	%		26	%		22	%		26	%
Average common shares and equivalents outstanding:
Basic		409,555			408,154			407,210			410,901			412,357
Diluted		414,248			412,986			411,996			416,687			418,599
EPS from continuing operations
GAAP	$	.47		$	.54		$	.52		$	.72		$	.58		23	%
Non-GAAP adjusted (a)		.50			.54			.52			.64			.61		22
Period-end data
Employees		16,600			16,700			16,700			16,800			17,100		3	%
Total shareholders’ equity to assets ratio (b)		11.07	%		10.55	%		10.54	%		11.27	%		12.10	%
Tangible shareholders’ equity to assets ratio (b)		5.26	%		4.99	%		5.35	%		4.74	%		5.38	%
Tier I capital ratio (b)		11.22	%		10.85	%		12.30	%		12.14	%		12.9	%(c)
Total (Tier I plus Tier II) capital ratio (b)		17.36	%		16.77	%		18.64	%		18.54	%		18.9	%(c)
Leverage capital ratio (b)		8.58	%		8.34	%		9.15	%		9.06	%		9.6	%(c)
Book value per common share	$	10.15		$	10.31		$	10.91		$	11.26		$	11.76
Tangible book value per common share	$	4.53		$	4.59		$	5.24		$	4.41		$	4.86
Dividends per share	$	.20		$	.22		$	.22		$	.22		$	.22
Dividend yield		2.2	%		2.6	%		2.3	%		2.1	%		2.0	%
Closing common stock price per share	$	35.60		$	34.43		$	39.10		$	42.15		$	43.14
Market capitalization	$	14,723		$	14,166		$	16,104		$	17,502		$	17,961

(a) 1Q07 includes merger-related expenses of $8 million and a $12 million litigation reserve charge. 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 - 5

Mellon Financial Corporation 1Q07 Quarterly Earnings Summary

NONINTEREST REVENUE

																1Q07
	2006												2007			vs.
(dollar amounts in millions, unless otherwise noted)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			1Q06
Asset and wealth management fees	$	464		$	486		$	516		$	599		$	609		31	%
Performance fees		58			48			56			196			35		(40	)
Distribution and servicing		98			108			107			102			123		26
Securities servicing fees
Asset servicing		224			244			233			244			252		12
Issuer services		48			54			49			45			52		9
Total securities servicing fees		272			298			282			289			304		12
Global payment services		70			68			66			67			66		(5	)
Foreign exchange and other trading activities		71			68			57			75			60		(15	)
Asset/investment income		21			21			19			23			23		6
Financing-related fees		15			11			9			10			11		(28	)
Securities gains		—			—			3			—			—		N/M
Other		51			50			49			52			49		(1	)
Total noninterest revenue (non-FTE)	$	1,120		$	1,158		$	1,164		$	1,413		$	1,280		14	%
Total noninterest revenue (FTE)	$	1,129		$	1,167		$	1,173		$	1,422		$	1,290		14	%
Noninterest revenue as a percentage of total revenue (FTE)		90	%		91	%		91	%		93	%		91	%
Annualized noninterest revenue per employee
(in thousands) (based on average headcount)	$	273		$	279		$	277		$	333		$	305		12	%
Market value of assets under management at period-end (in billions)	$	808		$	870		$	918		$	995		$	1,034		28	%
Market value of assets under custody or administration at period-end (in billions)	$	4,125		$	4,213		$	4,380		$	4,491		$	4,811		17	%
S&P 500 Index - period-end		1295			1270			1336			1418			1421		10	%
S&P 500 Index - daily average		1284			1281			1288			1389			1424		11	%

N/M - Not meaningful.

Note: Several new line items have been created on the income statement. See page 2. Prior periods have been restated.

KEY POINTS

• Asset and wealth management fees were up a strong 31%, driven by improved equity markets and net asset flows, the acquisition of Walter Scott & Partners, and a higher yield on average assets under management; excluding the impact of acquisitions, asset and wealth management fees increased by 22%

• Performance fees decreased $23 million reflecting a lower level of out-performance relative to 1Q06 and a relative shift towards hedge fund products with fourth quarter performance fees

• Distribution and servicing fees increased 26%, reflecting higher sales volumes and higher market values of mutual funds by Mellon Global Investments, our international distributor

• Securities servicing fees increased 12% primarily due to:

• Asset servicing increased 12%, due primarily to net new business and a 76% increase in net equity earnings from the ABN AMRO Mellon and CIBC Mellon joint ventures, partially offset by a decline in securities lending revenue

• Issuer services increased 9%, primarily reflecting higher fees from corporate actions related to M&A activity

• Global payment services declined 5% due primarily to the loss (in 2006) of the U.S. Government passport processing business

• Foreign exchange and other trading activities decreased 15% primarily due to lower market volatility in most currencies partially offset by higher client volumes

Page - 6

Mellon Financial Corporation 1Q07 Quarterly Earnings Summary

NET INTEREST REVENUE

																1Q07
	2006												2007			vs.
(dollar amounts in millions) (a)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			1Q06
Net interest revenue (FTE)	$	124		$	116		$	123		$	113		$	129		4	%
Net interest margin (FTE)		1.92	%		1.70	%		1.63	%		1.55	%		1.78	%	(14	)bp
Selected average balances:
Money market investments	$	2,317		$	2,897		$	4,903		$	3,774		$	4,160		80	%
Trading account securities (b)		309			439			456			480			504		63
Securities (c)		17,617			18,172			18,609			18,518			18,546		5
Loans		5,979			5,872			5,852			6,101			6,085		2
Interest-earning assets (c)		26,222			27,380			29,820			28,873			29,295		12
Interest-bearing deposits		15,295			15,722			19,917			19,144			17,571		15
Noninterest-bearing deposits		8,274			8,362			7,988			7,407			8,397		2
Noninterest-bearing deposits as a percentage of interest-earning assets		32	%		31	%		27	%		26	%		29	%

(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 FIN 39 assets as these assets are noninterest-earning.

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

bp - basis points.

KEY POINTS

• Net interest revenue (FTE) increased $5 million, or 4%, compared with 1Q06, reflecting the higher level of interest earning assets, partially offset by the financing costs associated with the Walter Scott & Partners acquisition. Net interest revenue increased $16 million, or 14% (unannualized), compared with 4Q06 reflecting a higher level of noninterest-bearing deposits and a higher level of interest-earning assets

• The net interest margin decreased 14 bps compared with 1Q06, reflecting the lower proportion of noninterest-bearing deposits combined with the financing costs associated with Walter Scott & Partners acquisition

• Please refer to pages 4 and 5 of the Appendix for a 9-quarter trend of average balances and interest yields/rates

Page - 7

Mellon Financial Corporation 1Q07 Quarterly Earnings Summary

NONINTEREST EXPENSE

																1Q07
	2006												2007			vs.
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr (a)			1st Qtr (a)			1Q06
Staff
Compensation	$	268		$	270		$	279		$	309		$	282		5	%
Incentives (b)		170			145			160			248			181		6
Employee benefits		76			71			73			78			77		2
Total staff		514	(c)		486			512			635			540		5
Distribution and servicing		115			126			122			140			142		24
Professional, legal and other purchased services		104			114			121			134			120		15
Net occupancy		59			58			51			68			56		(4	)
Business development		25			28			25			36			28		11
Furniture and equipment		25			24			26			31			28		12
Software		20			21			16			20			18		(9	)
Sub-custodian expenses		13			14			14			14			17		23
Communications		9			8			8			8			6		(26	)
Amortization of intangible assets		7			7			7			23			12		64
Other		63			72			61			83			81		29
Total noninterest expense	$	954		$	958		$	963		$	1,192		$	1,048		10	%
Total staff expense as a percentage of total revenue (FTE)		41	%(c)		38	%		39	%		41	%		38	%
Employees at period-end		16,600			16,700			16,700			16,800			17,100		3	%

(a) 4Q06 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. 1Q07 includes $8 million of merger-related expenses and a $12 million charge for litigation.

(b) Stock option expense 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, and $7 million in the 1Q07.

(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.

Note: Several new line items have been created on the income statement. See page 2. Prior periods have been restated.

KEY POINTS

• Strong expense management resulting in 340 bps of positive operating leverage

• Total revenue +13.3%

• Total noninterest expense +9.9%

• Total staff expense increased 5% due to; new business, annual merit increase (effective July 1, 2006) and the Walter Scott & Partners acquisition

• Distribution and servicing increased 24% due to an increased level of mutual fund sales activity outside of the U.S.

• Higher professional, legal and other purchased services, business development, furniture and equipment and sub-custodian expense in support of new business generation and strategic initiatives, as well as the Walter Scott & Partners acquisition, partially offset by declines in net occupancy, communications and software expense

• Other - 1Q07 includes a $12 million litigation reserve charge

Page - 8

Mellon Financial Corporation 1Q07 Quarterly Earnings Summary

FIRST QUARTER 2007 REVENUE (FTE) AND PRE-TAX INCOME (FTE) MIX

* Business sectors, excluding the Other sector

ASSETS UNDER MANAGEMENT FLOWS

	12 Months
Changes in market value of assets under management from March 31, 2006 to March 31, 2007 - by business sector
(in billions)	Asset Management		Wealth Management		Asset Servicing		Total
Market value of assets under management at March 31, 2006	$	649	$	55	$	104	$	808
Net inflows:
Long-term		22		2		—		24
Money market		38		—		—		38
Securities lending		—		—		28		28
Total net inflows		60		2		28		90
Net market appreciation (a)		59		3		—		62
Acquisitions, net, and transfers		66		—		8		74
Market value of assets under management at
March 31, 2007	$	834	$	60	$	140	$	1,034

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

	3 Months
Changes in market value of assets under management from Dec. 31, 2006 to March 31, 2007 - by business sector
(in billions)	Asset Management			Wealth Management		Asset Servicing		Total
Market value of assets under management at Dec. 31, 2006	$	820		$	59	$	116	$	995
Net inflows (outflows):
Long-term		(4	)		1		—		(3	)
Money market		6			—		—		6
Securities lending		—			—		24		24
Total net inflows		2			1		24		27
Net market appreciation (a)		12			—		—		12
Market value of assets under management at
March 31, 2007	$	834		$	60	$	140	$	1,034

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

Page - 9

Mellon Financial Corporation 1Q07 Quarterly Earnings Summary

BUSINESS SECTORS

Our lines of business are combined into six business sectors: Asset Management; Wealth Management; Asset Servicing; Issuer Services; Treasury Services; and Other.

ASSET MANAGEMENT

																1Q07
	2006												2007			vs.
(dollar amounts in millions, unless otherwise noted; presented on an FTE basis)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			1Q06
Revenue:
Asset and wealth management:
Mutual funds	$	194		$	201		$	204		$	228		$	232		20	%
Institutional clients		156			167			194			244			249		59
Private clients		24			26			25			28			29		19
Total asset and wealth management		374			394			423			500			510		36
Performance fees		58			48			56			196			35		(40	)
Distribution and servicing		98			108			107			102			123		26
Other		28			15			25			40			26		(10	)
Total noninterest revenue		558			565			611			838			694		24
Net interest revenue (expense)		(4	)		(10	)		(10	)		(18	)		(9	)	N/M
Total revenue		554			555			601			820			685		23
Noninterest expense		395			399			415			545			477		21
Income before taxes	$	159		$	156		$	186		$	275		$	208		30	%
Market value of assets under management at period-end (in billions)(a)	$	649		$	708		$	748		$	820		$	834		28	%
Assets under management - net inflows (outflows) (in billions):
Long-term	$	10		$	11		$	6		$	9		$	(4	)
Money market	$	(3	)	$	10		$	19		$	3		$	6
Employees at period-end		2,600			2,600			2,600			2,700			2,800
Return on common equity (annualized)		44	%		42	%		50	%		74	%		39	%
Pre-tax operating margin		29	%		28	%		31	%		34	%		30	%
Adjusted pre-tax operating margin (b)		36	%		36	%		39	%		40	%		38	%
MEMO: Intangible amortization	$	3		$	3		$	3		$	8		$	9

(a) Excludes amounts subadvised for other sectors of $4 billion, $3 billion, $3 billion, $4 billion and $6 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.

KEY POINTS

• Generated 200 bps of positive operating leverage

• 35% of the total revenue non-U.S. vs. 25% in 1Q06

• Asset and wealth management fees increased 36% vs. 1Q06, reflecting improved equity markets, net asset flows, the Walter Scott & Partners acquisition, as well as a higher yield on average assets under management, driven by an increase in mutual fund assets and higher yielding institutional products

• Long-term asset flows were negative $4 billion in 1Q07 principally reflecting the loss of low yielding products (averaging under 10 bps) partially offset by our focus on alpha-generating institutional products

• Short-term asset flows were positive $6 billion in 1Q07 reflecting the interest rate environment

• Performance fees decreased $23 million reflecting a lower level of out-performance relative to 1Q06 and a relative shift towards hedge fund products with fourth quarter performance fees

• Distribution and service fees increased 26%, reflecting higher sales volumes and higher market values of mutual funds by Mellon Global Investments, our international distributor

• Pipeline for new business extremely strong going into 2Q07

• Mellon Global Investments opened an office in Seoul, South Korea (January 2007)

Page - 10

Mellon Financial Corporation 1Q07 Quarterly Earnings Summary

WEALTH MANAGEMENT

																1Q07
	2006												2007			vs.
(dollar amounts in millions, unless otherwise noted; presented on an FTE basis)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			1Q06
Revenue:
Asset and wealth management	$	90		$	92		$	93		$	99		$	99		10	%
Other		8			8			7			7			7		N/M
Total noninterest revenue		98			100			100			106			106		8
Net interest revenue		74			77			77			77			75		2
Total revenue		172			177			177			183			181		5
Noninterest expense		103			105			106			112			110		7
Income before taxes	$	69		$	72		$	71		$	71		$	71		2	%
Average loans	$	4,615		$	4,688		$	4,669		$	4,762		$	4,834		5	%
Average assets	$	10,279		$	10,395		$	10,544		$	10,760		$	11,008		7
Average deposits	$	8,824		$	8,865		$	8,827		$	8,936		$	9,219		4
Market value of total client assets at period end (in billions)	$	89		$	87		$	90		$	95		$	99		12	%
Employees at period-end		1,900			2,000			2,000			2,000			2,000
Return on common equity (annualized)		34	%		35	%		34	%		35	%		34	%
Pre-tax operating margin		40	%		41	%		40	%		39	%		39	%
MEMO: Intangible amortization	$	1		$	1		$	1		$	1		$	1

N/M - Not meaningful.

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

KEY POINTS

• Total noninterest revenue increased 8%, driven by improved equity markets, new business and acquisitions; annualized new business revenue is up 43% from 1Q06

• Total client assets increased 12%, to a record level of $99 billion, including a record level of $60 billion in managed assets; increases were driven by improved equity markets and new business

• Net interest revenue increased 2% due to higher loan and deposit levels; volume increases were partially offset by deposit spread compression

• Negative operating leverage resulted from the expense impact of growth initiatives including the impact of additional sales representatives, new office locations as well as increased marketing and technology expenses

• 1Q07 opened new office location in Connecticut, wealth offices now total 69

• 2006 Client Survey

• 93% - exceptional client satisfaction

• 93% - willing to refer Wealth Management

Page - 11

Mellon Financial Corporation 1Q07 Quarterly Earnings Summary

ASSET SERVICING

																1Q07
	2006												2007			vs.
(dollar amounts in millions, unless otherwise noted; presented on an FTE basis)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			1Q06
Revenue:
Securities servicing fees - Asset Servicing	$	204		$	226		$	214		$	223		$	231		13	%
Foreign exchange and other trading activities		62			75			56			63			55		(12	)
Other		21			20			21			25			23		17
Total noninterest revenue (a)		287			321			291			311			309		8
Net interest revenue		26			27			29			24			32		23
Total revenue		313			348			320			335			341		9
Noninterest expense		245			261			257			292			264		8
Income before taxes	$	68		$	87		$	63		$	43		$	77		14	%
Average deposits	$	7,111		$	7,570		$	8,737		$	8,975		$	8,536		20	%
Market value of assets under management at period-end (in billions)(b)	$	104		$	108		$	115		$	116		$	140		35	%
Market value of assets under custody or administration at period-end (in billions) (a)	$	4,091		$	4,180		$	4,344		$	4,453		$	4,769		17	%
Employees at period-end		4,500			4,500			4,600			4,600			4,700
Return on common equity (annualized)		34	%		42	%		31	%		21	%		36	%
Pre-tax operating margin		22	%		25	%		20	%		13	%		23	%
MEMO:
Securities lending revenue	$	30		$	38		$	26		$	26		$	29		(5	)%
Total joint venture revenue (a)	$	119		$	149		$	140		$	143		$	153		28	%
Intangible amortization	$	3		$	3		$	2		$	14		$	2		N/M

(a) Total joint venture revenue includes the activity of CIBC Mellon and ABN AMRO Mellon. Included in noninterest 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 $682 billion, $695 billion, $737 billion, $748 billion and $771 billion. Assets under custody or administration of ABN AMRO Mellon totaled $586 billion, $640 billion, $696 billion, $773 billion and $913 billion.

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

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

KEY POINTS

• Generated 100 bps of positive operating leverage

• 32% of 1Q07 total revenue non-U.S., compared to 28% 1Q06

• Total revenue increased 9% reflecting:

• A 13% increase in asset servicing fees, driven by improved market conditions, net new business, a 76% increase in net equity earnings from the ABN AMRO Mellon and CIBC Mellon joint ventures; partially offset by lower securities lending revenue due to lower spreads partially offset by a higher level of securities on loan

• A 12% decrease in foreign exchange and other trading activities, due to lower volatility in most currencies partially offset by higher client volumes

• A 23% increase in net interest revenue due to increased deposit levels and spreads

• Noninterest expense increased 8%, reflecting higher staff expense in support of business growth, increased joint venture pass-through payments, increased sub-custodian expense related to higher asset levels and other growth initiatives

• Assets under custody or administration increased to a record level of $4.769 trillion, including net new conversions of $240 billion in 1Q07

• New business wins totaled $126 billion in 1Q07

• Pipeline for new business extremely strong going into 2Q07

• 2007 R&M Custody Survey - #1 rated custodian among the peer group of large custodians for the sixth consecutive year (released March 2007)

Page - 12

Mellon Financial Corporation 1Q07 Quarterly Earnings Summary

ISSUER SERVICES (provides shareholder services to corporations and institutions previously included in the PS&IS sector)

																1Q07
	2006												2007			vs.
(dollar amounts in millions, unless otherwise noted; presented on an FTE basis)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			1Q06
Revenue:
Securities servicing fees - Issuer Services	$	48		$	54		$	49		$	45		$	52		9	%
Other		1			2			1			2			2		N/M
Total noninterest revenue		49			56			50			47			54		9
Net interest revenue		18			20			19			22			24		33
Total revenue		67			76			69			69			78		16
Noninterest expense		57			62			56			63			62		9
Income before taxes	$	10		$	14		$	13		$	6		$	16		56	%
Average deposits	$	1,639		$	1,665		$	1,497		$	1,726		$	1,897		16	%
Employees at period-end		800			800			800			800			800
Return on common equity (annualized)		18	%		26	%		23	%		11	%		28	%
Pre-tax operating margin		15	%		19	%		19	%		9	%		20	%
MEMO: Intangible amortization	$	—		$	—		$	—		$	—		$	—

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

KEY POINTS

• Generated 700 bps of positive operating leverage

• Total noninterest revenue increased 9% primarily reflecting higher fees from corporate actions related to M&A activity

• Net interest revenue increased 33% due primarily to a 16% increase in average deposit levels

• Noninterest expense increased 9% in support of revenue growth

• Pipeline for M&A related corporate actions remains strong

Page - 13

Mellon Financial Corporation 1Q07 Quarterly Earnings Summary

TREASURY SERVICES (provides working capital solutions, which was previously included in the PS&IS sector, and institutional banking previously included in the Other sector)

																1Q07
	2006												2007			vs.
(dollar amounts in millions, unless otherwise noted; presented on an FTE basis)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			1Q06
Revenue:
Global payment services	$	64		$	62		$	61		$	62		$	63		(2	)%
Other		8			9			9			10			12		N/M
Total noninterest revenue		72			71			70			72			75		6
Net interest revenue		30			31			29			30			32		3
Total revenue		102			102			99			102			107		5
Noninterest expense		73			73			75			78			79		7
Income before taxes	$	29		$	29		$	24		$	24		$	28		(1	)%
Average loans	$	520		$	593		$	615		$	772		$	688		32	%
Average assets	$	5,667		$	5,462		$	5,355		$	5,628		$	5,952		5	%
Average deposits	$	5,099		$	4,851		$	4,714		$	5,036		$	5,353		5	%
Employees at period-end		2,600			2,600			2,600			2,600			2,600
Return on common equity (annualized)		23	%		23	%		19	%		18	%		22	%
Pre-tax operating margin		28	%		29	%		24	%		23	%		27	%
MEMO: Intangible amortization	$	—		$	—		$	1		$	—		$	—

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

KEY POINTS

• Noninterest revenue increased $3 million due to higher other fee revenue

• Net interest revenue increased $2 million primarily resulting from higher deposit levels at Working Capital Solutions

• Noninterest expense increased $6 million primarily in support of business growth

• Working Capital Solutions - Maintains customer satisfaction leadership position in wholesale lockbox (2006 Phoenix-Hecht survey)

Page - 14

Mellon Financial Corporation 1Q07 Quarterly Earnings Summary

OTHER SECTOR (primarily includes business exits activity and Corporate Treasury activities)

	2006												2007
(in millions, presented on an FTE basis)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Revenue:
Noninterest revenue	$	65		$	54		$	51		$	48		$	52
Net interest revenue		(20	)		(29	)		(21	)		(22	)		(25	)
Total revenue		45			25			30			26			27
Credit quality expense		1			(3	)		(1	)		5			3
Noninterest expense		81			58			54			102			56
Income (loss) before taxes (FTE)	$	(37	)	$	(30	)	$	(23	)	$	(81	)	$	(32	)

KEY POINTS

• Total revenue declined $18 million resulting from the 1Q06 gain on the sale of the large corporate real estate loan portfolio, and lower revenue in 2007 due to the expiration of the transitional services agreement with ACS

• Noninterest expense declined $25 million, principally due, after excluding the $19 million in 1Q06 and $20 million in 1Q07 charges noted on page 5, footnote (a), to lower under absorbed overhead in the Other sector due to growth in the business sectors

INCOME TAXES

The effective tax rate for the first quarter of 2007 was 31.2%, compared with 32.2% in the first quarter of 2006. It is currently anticipated that the tax rate for the second quarter of 2007 will be approximately 32.5%.

DISCONTINUED OPERATIONS

We reported a net after-tax gain of $9 million from discontinued operations in the first quarter of 2007.

In August 2006, we announced a definitive agreement to sell our insurance premium financing company, AFCO Credit Corporation, and its Canadian affiliate, CAFO Inc. The sale closed on Jan. 2, 2007, resulting in a $13 million after-tax gain on sale in the first quarter of 2007.

In December 2006, Mellon sold its ownership interest in the direct and indirect portfolios of Mellon Ventures, our venture capital business. A substantial portion of the sale was completed in December with subsequent closings during the first quarter of 2007. An additional $5 million after-tax loss on the sale of this business was recorded in the first quarter of 2007, primarily resulting from an adjustment to the carrying value of a receivable recorded as part of the settlement of the transaction.

Page - 15

Mellon Financial Corporation 1Q07 Quarterly Earnings Summary

JUNIOR SUBORDINATED DEBENTURES

Based on current interest rate expectations and subject to our ability to issue replacement securities prior to the proposed merger with BNY, we intend to redeem our Series A and Series B junior subordinated debentures, each issued for a face value of $515 million, in the second quarter of 2007. The securities are redeemable at 103.86% and 103.9975% of the liquidation amounts during the 12-month periods beginning Dec. 1, 2006 and Jan. 15, 2007, respectively. We expect to replace these securities in the second quarter 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. Junior subordinated debentures are included in long-term debt on our balance sheet.

IMPACT OF ADOPTION OF FIN NO. 48 AND FSP NO. 13-2

Effective Jan. 1, 2007, we adopted FASB Interpretation (FIN) No. 48, “Accounting for Uncertainty in Income Taxes”—an Interpretation of SFAS No. 109, “Accounting for Income Taxes.” Also, in conjunction with the adoption of FIN 48, we adopted FASB Staff Position (FSP) 13-2, “Accounting for a Change or Projected Change in the Timing of Cash Flows Relating to Income Taxes Generated by a Leveraged Lease Transaction.” The combined impact of adopting FIN 48 and FSP 13-2 was a $6 million direct reduction to the beginning balance of our retained earnings, reported as a change in accounting principle.

MERGER AGREEMENT WITH 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 called The Bank of New York Mellon Corporation. The parties amended and restated the Merger Agreement on Feb. 23, 2007 and again on March 30, 2007. The boards of directors of both companies have unanimously approved the Merger Agreement and have adopted a resolution recommending the adoption of the Merger Agreement by its respective shareholders. 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 currently expected to close early in the third quarter of 2007.

Mellon and BNY filed a joint proxy statement/prospectus with the SEC regarding the proposed merger in late February and filed amendments to the joint proxy statement/prospectus with the SEC in April. Mellon and BNY each anticipate holding separate special shareholder meetings on May 24, 2007 to approve the merger. April 12, 2007 is the record date for shareholders entitled to vote at the special shareholders meeting.

Page - 16

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
Noninterest Expense	6
Assets Under Management / Administration or Custody	7
Assets Under Management Net Flows	8
Asset Management	9
Wealth Management	10
Asset Servicing	11
Issuer Services	12
Treasury Services	13
Other Sector	14
Annual Business Sector Trends 2004-2006	15
Nonperforming Assets	17
Provision and Reserve for Credit Exposure	18

Page - 17

EX-99.2

Exhibit 99.2

MELLON FINANCIAL CORPORATION

Notes to Financial Trends

Notes:

On Dec. 3, 2006, Mellon Financial Corporation (“Mellon”) and The Bank of New York (“BNY”) entered into an Agreement and Plan of Merger, under which Mellon and BNY will each merge with and into a newly formed corporation called The Bank of New York Mellon Corporation.

As part of the planning process for the integration of Mellon and The Bank of New York after the closing of the proposed merger, during the first quarter of 2007:

We realigned our business sectors creating the new Issuer Services and Treasury Services sectors and eliminating the Payment Solutions & Investor Services (PS&IS) sector. The Issuer Services sector consists of Mellon Investor Services (stock transfer business), which was previously included in the PS&IS sector. The Treasury Services sector consists of Working Capital Solutions (global cash management) and Mellon Financial Markets (capital markets business), both previously included in the PS&IS sector, as well as Mellon Institutional Banking (large corporate banking), which was previously included in the Other sector. All prior periods have been reclassified for these changes. In addition, we renamed the Mellon Asset Management sector to Asset Management, and the Private Wealth Management sector, to Wealth Management. There were no changes to the Asset Servicing sector. These changes did not affect the operation of these lines of business.

In addition, several new line items have been created on the income statement and balance sheet as described on Page 2 of Mellon’s Quarterly Earnings Summary dated April 17, 2007. All prior periods have been reclassified.

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

Discontinued Operations Accounting -

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 - 9 Quarter Trend

(dollar amounts in millions unless otherwise noted; presented on an FTE basis)	2005												2006												2007
	1st Qtr (a)			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr (b)			2nd Qtr			3rd Qtr			4th Qtr (c)			1st Qtr (d)
Revenue:
Asset and wealth management fees	$	399		$	415		$	437		$	445		$	464		$	486		$	516		$	599		$	609
Performance fees		27			26			41			77			58			48			56			196			35
Distribution and servicing		71			74			82			90			98			108			107			102			123
Securities servicing fees
Asset servicing		174			193			197			214			224			244			233			244			252
Issuer services		53			57			46			54			48			54			49			45			52
Total securities servicing fees		227			250			243			268			272			298			282			289			304
Global payment services		76			82			75			70			70			68			66			67			66
Other fee revenue		341			148			147			148			167			159			146			169			153
Total noninterest revenue		1,141			995			1,025			1,098			1,129			1,167			1,173			1,422			1,290
Net interest revenue		117			127			117			120			124			116			123			113			129
Total revenue		1,258			1,122			1,142			1,218			1,253			1,283			1,296			1,535			1,419
Credit quality expense		(2	)		3			12			4			1			(3	)		(1	)		5			3
Amortization of intangible assets		6			7			7			7			7			7			7			23			12
Other operating expenses		782			807			850			896			947			951			956			1,169			1,036
Total operating expenses		788			814			857			903			954			958			963			1,192			1,048
Income from continuing operations before income taxes (benefits)		472			305			273			311			298			328			334			338			368
Income taxes (benefits)		172			108			87			110			105			105			116			40			125
Income from continuing operations		300			197			186			201			193			223			218			298			243
Income from discontinued operations after-tax		(45	)		(72	)		8			7			14			9			4			(61	)		9
Net income (loss)	$	255		$	125		$	194		$	208		$	207		$	232		$	222		$	237		$	252
EPS from Continuing Operations	$	0.71		$	0.47		$	0.45		$	0.48		$	0.47		$	0.54		$	0.52		$	0.72		$	0.58
Average loans (e)	$	6,882		$	7,339		$	7,421		$	7,133		$	6,758		$	6,625		$	6,684		$	6,884		$	6,078
Average assets (f)	$	36,869		$	36,436		$	37,907		$	37,988		$	37,515		$	39,104		$	41,447		$	41,362		$	41,042
Average deposits	$	23,035		$	22,322		$	23,566		$	23,905		$	23,569		$	24,084		$	27,905		$	26,551		$	25,969
Average common equity	$	4,178		$	4,087		$	4,109		$	4,114		$	4,157		$	4,182		$	4,312		$	4,673		$	4,746
Average Tier I preferred equity	$	1,038		$	1,037		$	1,032		$	1,024		$	1,022		$	1,015		$	1,072		$	1,403		$	1,412
Market value of assets under management at period end (in billions)	$	729		$	738		$	766		$	781		$	808		$	870		$	918		$	995		$	1,034
Market value of assets under administration or custody at period end (in billions)	$	3,293		$	3,450		$	3,777		$	3,908		$	4,125		$	4,213		$	4,380		$	4,491		$	4,811
Return on common equity		29	%		19	%		18	%		19	%		19	%		21	%		20	%		25	%		21	%
Pretax operating margin		38	%		27	%		24	%		26	%		24	%		26	%		26	%		22	%		26	%
Pretax operating margin (excluding items in footnotes a to d)		27	%		27	%		24	%		26	%		25	%		26	%		26	%		26	%		27	%

(a) 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.

(b) 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.

(c) 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.

(d) The first quarter of 2007 includes $8 million of merger related expenses and a $12 million litigation reserve charge.

(e) Consolidated average loans include average loans of discontinued operations of $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; $0 million for the first quarter of 2007.

(f) Consolidated average assets include average assets of discontinued operations of $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; $658 million for the first quarter of 2007.

Page 2

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 9 Quarter Trend

NONINTEREST REVENUE

(dollar amounts in millions unless otherwise noted)	2005												2006												2007
	1st Qtr (a)			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Asset and wealth management	$	399		$	415		$	437		$	445		$	464		$	486		$	516		$	599		$	609
Performance fees		27			26			41			77			58			48			56			196			35
Distribution and service		71			74			82			90			98			108			107			102			123
Securities servicing fees
Asset servicing		174			193			197			214			224			244			233			244			252
Issuer services		53			57			46			54			48			54			49			45			52
Total securities servicing fees		227			250			243			268			272			298			282			289			304
Global payment services		76			82			75			70			70			68			66			67			66
Foreign exchange and other trading activities		57			50			57			53			71			68			57			75			60
Asset/investment income		225			29			25			24			21			21			19			23			23
Financing-related fees		9			9			8			10			15			11			9			10			11
Securities gain		—			—			1			—			—			—			3			—			—
Other		40			47			48			51			51			50			49			52			49
Total noninterest revenue (non-FTE)	$	1,131		$	982		$	1,017		$	1,088		$	1,120		$	1,158		$	1,164		$	1,413		$	1,280
FTE impact		10			13			8			10			9			9			9			9			10
Total noninterest revenue (FTE)	$	1,141		$	995		$	1,025		$	1,098		$	1,129		$	1,167		$	1,173		$	1,422		$	1,290
Fee and other revenue as a percentage of fee and net interest revenue (FTE) (a)		91	%		89	%		90	%		90	%		90	%		91	%		91	%		93	%		91	%
Market value of assets under management at period end (in billions)	$	729		$	738		$	766		$	781		$	808		$	870		$	918		$	995		$	1,034
Market value of assets under administration or custody at period end (in billions)	$	3,293		$	3,450		$	3,777		$	3,908		$	4,125		$	4,213		$	4,380		$	4,491		$	4,811
S&P 500 Index - period end		1181			1191			1229			1248			1295			1270			1336			1418			1421
S&P 500 Index - daily average		1192			1182			1224			1231			1284			1281			1288			1389			1424

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

Page 3

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 9 Quarter Trend

Average Balances (a)

	2005												2006												2007
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Average assets:
Investment Securities:
Fixed rate	$	6,231		$	6,001		$	5,772		$	5,704		$	5,557		$	5,444		$	5,319		$	5,196		$	5,105
Adjustable rate		2,490			2,791			3,053			3,355			3,645			3,584			3,360			3,161			2,979
Floating rate		4,207			4,847			6,315			7,040			7,595			8,366			9,164			9,421			9,738
Obligations of states and political subdivisions		749			794			819			829			814			771			749			722			705
Other (b)		21			24			22			5			6			7			17			18			19
Total investment securities	$	13,698		$	14,457		$	15,981		$	16,933		$	17,617		$	18,172		$	18,609		$	18,518		$	18,546
Trading account securities		308			294			309			283			309			439			456			480			504
Money Market Assets		4,234			3,293			2,700			2,812			2,317			2,897			4,903			3,774			4,160
Loans, net of unearned discount		6,483			6,589			6,618			6,354			5,979			5,872			5,852			6,101			6,085
Total interest-earning assets		24,723			24,633			25,608			26,382			26,222			27,380			29,820			28,873			29,295
Total non interest-earning assets (c)		12,192			11,876			12,371			11,775			11,465			11,984			11,851			12,599			11,846
Total Assets	$	36,915		$	36,509		$	37,979		$	38,157		$	37,687		$	39,364		$	41,671		$	41,472		$	41,141
Average liabilities and shareholders’ equity:
Deposits in domestic offices	$	9,653		$	9,298		$	9,760		$	10,087		$	9,748		$	9,673		$	13,328		$	13,157		$	11,919
Deposits in foreign offices		6,256			6,004			6,395			5,926			5,547			6,049			6,589			5,987			5,652
Total interest-bearing deposits		15,909			15,302			16,155			16,013			15,295			15,722			19,917			19,144			17,571
Federal funds purchased and securities under repurchase agreements		978			1,627			2,135			1,763			1,765			2,394			1,376			1,560			1,357
Other funds borrowed		421			442			411			438			468			590			144			297			212
Long term debt		5,511			5,293			4,836			4,692			4,633			4,584			4,669			5,042			5,053
Funding of disc ops		(1,428	)		(1,611	)		(1,418	)		(1,390	)		(1,374	)		(1,343	)		(1,373	)		(1,283	)		(98	)
Total interest-bearing liabilities		21,391			21,053			22,119			21,516			20,787			21,947			24,733			24,760			24,095
Total non interest-bearing deposits		7,094			7,012			7,411			7,892			8,274			8,362			7,988			7,407			8,397
Other liabilities (c)		4,223			4,310			4,294			4,525			4,357			4,704			4,492			4,560			3,838
Total liabilities		32,708			32,375			33,824			33,933			33,418			35,013			37,213			36,727			36,330
Shareholders’ equity		4,207			4,134			4,155			4,224			4,269			4,351			4,458			4,745			4,811
Total liabilities and shareholders’ equity	$	36,915		$	36,509		$	37,979		$	38,157		$	37,687		$	39,364		$	41,671		$	41,472		$	41,141

(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 Preferred Stock, Loan Securitizations and other Investment Securities.

(c) Includes assets and liabilities of discontinued operations.

Page 4

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 9 Quarter Trend

Interest Yields/Rates (a)

	2005								2006								2007
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr
Average Rates:
Investment Securities:
Fixed rate	4.34	%	4.34	%	4.31	%	4.30	%	4.39	%	4.41	%	4.37	%	4.37	%	4.44	%
Adjustable rate	3.57		3.71		3.81		3.93		4.21		4.27		4.31		4.45		4.61
Floating rate	3.17		3.64		4.03		4.52		5.02		5.36		5.67		5.67		5.78
Obligations of states and political subdivisions	7.13		6.97		6.80		6.69		6.88		6.70		6.59		6.52		6.78
Other (b)	NM		NM		NM		NM		NM		NM		NM		NM		NM
Total investment securities	4.03		4.12		4.24		4.47		4.78		4.94		5.10		5.14		5.29
Trading account securities	1.75		2.24		2.21		2.16		1.86		2.19		2.32		2.41		2.09
Money market assets	2.93		2.98		3.11		3.67		3.80		4.12		4.20		4.33		4.78
Loans, net of unearned discount	4.91		6.01		5.60		5.85		6.17		6.51		6.97		7.02		7.35
Total interest-earning assets	4.04	%	4.45	%	4.45	%	4.69	%	4.97	%	5.15	%	5.28	%	5.39	%	5.59	%
Deposits in domestic offices	1.64	%	1.98	%	2.39	%	2.79	%	3.18	%	3.61	%	4.06	%	3.96	%	4.17	%
Deposits in foreign offices	2.18		2.43		2.52		3.13		3.24		3.59		3.44		3.72		3.83
Total interest-bearing deposits	1.85		2.16		2.44		2.92		3.20		3.60		3.86		3.88		4.06
Federal funds purchased and securities under repurchase agreements	2.05		2.46		3.19		3.62		3.74		4.75		4.45		4.67		4.53
Other funds borrowed	1.97		3.00		3.34		3.96		4.34		4.80		5.23		5.02		5.17
Long term debt	4.28		4.53		5.01		5.47		5.90		6.21		6.53		6.42		6.59
Funding of disc ops (c)	NM		NM		NM		NM		NM		NM		NM		NM		NM
Total interest-bearing liabilities	2.47	%	2.77	%	3.07	%	3.54	%	3.85	%	4.29	%	4.40	%	4.47	%	4.63	%
Rates
Yield on total interest-earning assets	4.04	%	4.45	%	4.45	%	4.69	%	4.97	%	5.15	%	5.28	%	5.39	%	5.59	%
Cost of funds supporting interest-earning assets	2.11	%	2.37	%	2.65	%	2.88	%	3.05	%	3.45	%	3.65	%	3.84	%	3.81	%
Net interest Margin:
Taxable equivalent basis	1.93	%	2.08	%	1.80	%	1.81	%	1.92	%	1.70	%	1.63	%	1.55	%	1.78	%
Without taxable equivalent increments	1.85	%	2.01	%	1.73	%	1.74	%	1.85	%	1.64	%	1.58	%	1.50	%	1.72	%

(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 - 9 Quarter Trend

NONINTEREST EXPENSE

	2005								2006								2007
(dollar amounts in millions)	1st Qtr (b)		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr (c)		2nd Qtr		3rd Qtr		4th Qtr (d)		1st Qtr (e)
Staff:
Compensation	$	243	$	248	$	254	$	260	$	268	$	270	$	279	$	309	$	282
Incentive (a)		105		114		124		133		170		145		160		248		181
Employee benefits		66		61		67		65		76		71		73		78		77
Total staff		414		423		445		458		514		486		512		635		540
Distribution and servicing		81		90		100		106		115		126		122		140		142
Professional, legal and other purchased services		91		100		104		114		104		114		121		134		120
Net occupancy		58		57		59		59		59		58		51		68		56
Furniture and equipment		26		30		27		31		25		24		26		31		28
Business development		20		24		23		28		25		28		25		36		28
Software expense		16		14		17		17		20		21		16		20		18
Sub-custodian expense		11		12		12		11		13		14		14		14		17
Communications		8		8		9		8		9		8		8		8		6
Amortization of intangible assets		6		7		7		7		7		7		7		23		12
Other		57		49		54		64		63		72		61		83		81
Total noninterest expense	$	788	$	814	$	857	$	903	$	954	$	958	$	963	$	1,192	$	1,048
Employees at period-end		15,700		16,000		16,700		16,500		16,600		16,700		16,700		16,800		17,100

(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 $6 million, $6 million, $7 million and $6 million for each of the quarters of 2005. It totaled $11 million for the 1st quarter of 2006, including $3 million to Mellon’s former chairman and chief executive officer, pursuant to his employment agreement, $9 million for the 2nd quarter of 2006, $8 million for both the 3rd quarter and the 4th quarter of 2006. It totaled $7 million for the 1st quarter of 2007.

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

(c) 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.

(d) 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.

(e) The first quarter of 2007 includes $8 million of merger related expenses and a $12 million litigation reserve charge.

Page 6

MELLON FINANCIAL CORPORATION

ASSETS UNDER MANAGEMENT/ ADMINISTRATION OR CUSTODY- 9 Quarter Trend

	2005												2006												2007
(dollar amounts in billions unless otherwise noted)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Market value of assets under management at period end
Institutional	$	463		$	469		$	490		$	501		$	527		$	585		$	607		$	667		$	697
Mutual Funds		203			205			212			216			214			219			244			251			258
Private Client		63			64			64			64			67			66			67			77			79
Total market value of assets under management		729			738			766			781			808			870			918			995			1,034
Composition of assets under management at period end
Equity		37	%		37	%		37	%		37	%		37	%		35	%		35	%		41	%		40	%
Fixed Income		20	%		19	%		18	%		18	%		19	%		21	%		20	%		19	%		19	%
Money Market		19	%		20	%		20	%		20	%		19	%		20	%		21	%		19	%		19	%
Securities lending cash collateral		15	%		16	%		16	%		15	%		15	%		13	%		14	%		13	%		14	%
Overlay and alternative investments		9	%		8	%		9	%		10	%		10	%		11	%		10	%		8	%		8	%
Total		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%
Managed mutual funds fee revenue (millions)
Equity Funds	$	85		$	87		$	93		$	93		$	93		$	96		$	96		$	113		$	118
Money Market Funds		49			54			58			58			58			59			63			65			63
Fixed Income Funds		30			31			30			31			29			29			30			31			31
Nonproprietary		15			16			19			19			14			17			15			20			20
Total managed mutual funds fee revenue		179			188			200			201			194			201			204			229			232
Average assets of proprietary mutual funds
Equity Funds	$	54		$	54		$	57		$	57		$	59		$	60		$	60		$	65		$	68
Money Market Funds		85			90			96			100			99			101			110			120			110
Fixed Income Funds		22			22			21			21			21			21			21			21			21
Total average assets of proprietary mutual funds		161			166			174			178			179			182			191			206			199
Market value of assets under administration or custody at period end (a)	$	3,293		$	3,450		$	3,777		$	3,908		$	4,125		$	4,213		$	4,380		$	4,491		$	4,811
Total Assets
Managed	$	729		$	738		$	766		$	781		$	808		$	870		$	918		$	995		$	1,034
Administration/Custody (a)		3,293			3,450			3,777			3,908			4,125			4,213			4,380			4,491			4,811
Total	$	4,022		$	4,188		$	4,543		$	4,689		$	4,933		$	5,083		$	5,298		$	5,486		$	5,845

(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, $393 billion at Dec. 31, 2006 and $398 billion at Mar. 31, 2007 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 - 9 Quarter Trend

	2005											2006										2007
(dollar amounts in billions )	1st Qtr			2nd Qtr			3rd Qtr		4th Qtr			1st Qtr			2nd Qtr			3rd Qtr		4th Qtr		1st Qtr
Market value of assets under management at beginning of period	$	707		$	729		$	738	$	766		$	781		$	808		$	870	$	918	$	995
Net Flows
Long-term		5			(1	)		9		7			11			11			6		10		(3	)
Money market		6			—			4		4			(3	)		10			19		3		6
Securities lending		21			9			2		(3	)		1			(4	)		7		1		24
Total net inflows		32			8			15		8			9			17			32		14		27
Net Market appreciation		(10	)		1			13		6			18			(2	)		16		36		12
Acquisitions/divestitures		—			—			—		1			—			47			—		27		—
Market value of assets under management at end of period	$	729		$	738		$	766	$	781		$	808		$	870		$	918	$	995	$	1,034

Page 8

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

ASSET MANAGEMENT - 9 Quarter Trend

	2005												2006												2007
(dollar amounts in millions unless otherwise noted; presented on an FTE basis)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr (a)			1st Qtr
Revenue:
Asset and wealth management
Mutual funds		179			187			200			201			194			201			204			228			232
Institutional clients		119			127			132			134			156			167			194			244			249
Private clients		20			21			22			23			24			26			25			28			29
Total asset and wealth management		318			335			354			358			374			394			423			500			510
Performance fees		27			26			41			77			58			48			56			196			35
Distribution and service		71			74			82			90			98			108			107			102			123
Securities servicing fees		15			17			15			15			17			16			16			19			18
Other fee revenue		5			—			4			—			11			(1	)		9			21			8
Total noninterest revenue		436			452			496			540			558			565			611			838			694
Net interest revenue (expense)		(4	)		(6	)		(6	)		(4	)		(4	)		(10	)		(10	)		(18	)		(9	)
Total revenue		432			446			490			536			554			555			601			820			685
Amortization of intangible assets		3			4			3			3			3			3			3			8			9
Other operating expenses		321			335			357			372			392			396			412			537			468
Total operating expenses		324			339			360			375			395			399			415			545			477
Income from continuing operations before taxes (benefits)		108			107			130			161			159			156			186			275			208
Income taxes (benefits)		39			38			42			57			52			50			60			90			67
Net income (loss)	$	69		$	69		$	88		$	104		$	107		$	106		$	126		$	185		$	141
Average loans	$	—		$	—		$	—		$	—		$	4		$	—		$	—		$	—		$	—
Average assets	$	1,976		$	1,987		$	1,994		$	1,958		$	1,990		$	2,362		$	2,518		$	3,096		$	3,285
Average deposits	$	19		$	8		$	10		$	14		$	13		$	8		$	27		$	21		$	46
Average common equity	$	966		$	966		$	966		$	966		$	997		$	997		$	997		$	997		$	1,449
Average Tier I preferred equity	$	476		$	476		$	476		$	476		$	399		$	399		$	399		$	399		$	528
Market value of assets under management at period end (in billions) (b),(c),(d)	$	587		$	587		$	612		$	629		$	653		$	711		$	751		$	824		$	840
Market value of assets under administration or custody at period end (in billions)	$	9		$	8		$	3		$	3		$	3		$	3		$	3		$	3		$	4
Return on common equity		29	%		29	%		37	%		43	%		44	%		42	%		50	%		74	%		39	%
Pretax operating margin (GAAP)		25	%		24	%		27	%		30	%		29	%		28	%		31	%		34	%		30	%
Adjusted pretax operating margin (e)		31	%		30	%		33	%		38	%		36	%		36	%		39	%		40	%		38	%
Employees at period-end		2,600			2,600			2,600			2,600			2,600			2,600			2,600			2,700			2,800

(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, $47 billion at Dec. 31, 2006 and $49 billion March 31, 2007 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

WEALTH MANAGEMENT - 9 Quarter Trend

	2005												2006												2007
(dollar amounts in millions unless otherwise noted; presented on an FTE basis)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr (a)			1st Qtr
Revenue:
Asset and wealth management		81			80			83			87			90			92			93			99			99
Securities servicing fees - Asset servicing		3			2			3			2			3			2			3			2			3
Other fee revenue		5			5			5			6			5			6			4			5			4
Total noninterest revenue		89			87			91			95			98			100			100			106			106
Net interest revenue (expense)		80			79			77			76			74			77			77			77			75
Total revenue		169			166			168			171			172			177			177			183			181
Credit quality expense		—			—			—			—			—			—			—			—			—
Amortization of intangible assets		1			1			1			1			1			1			1			1			1
Other operating expenses		90			91			95			99			102			104			105			111			109
Total operating expenses		91			92			96			100			103			105			106			112			110
Income from continuing operations before taxes (benefits)		78			74			72			71			69			72			71			71			71
Income taxes (benefits)		28			26			23			26			22			24			23			23			23
Net income (loss)	$	50		$	48		$	49		$	45		$	47		$	48		$	48		$	48		$	48
Average loans	$	4,506		$	4,623		$	4,651		$	4,563		$	4,615		$	4,688		$	4,669		$	4,762		$	4,834
Average assets	$	9,431		$	9,462		$	10,062		$	10,860		$	10,279		$	10,395		$	10,544		$	10,760		$	11,008
Average deposits	$	8,295		$	8,286		$	8,846		$	9,474		$	8,824		$	8,865		$	8,827		$	8,936		$	9,219
Average common equity	$	571		$	571		$	571		$	571		$	553		$	553		$	553		$	553		$	566
Average Tier I preferred equity	$	215		$	215		$	215		$	215		$	184		$	184		$	184		$	184		$	169
Market value of total client assets at period end (in billions) (b)	$	77		$	78		$	82		$	86		$	89		$	87		$	90		$	95		$	99
Return on common equity		35	%		34	%		34	%		32	%		34	%		35	%		34	%		35	%		34	%
Pretax operating margin		46	%		45	%		43	%		41	%		40	%		41	%		40	%		39	%		39	%
Employees at period-end		1,900			1,900			1,900			1,900			1,900			2,000			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 $49 billion, $50 billion, $51 billion and $53 billion in the first, second, third and fourth quarters of 2005, $55 billion, $54 billion, $55 billion and $59 billion in the first, second, third and fourth quarters of 2006; and $60 billion in the first quarter of 2007.

Page 10

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

ASSET SERVICING - 9 Quarter Trend

(dollar amounts in millions unless otherwise noted; presented on an FTE basis)	2005												2006												2007
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr(a)			1st Qtr
Revenue:
Securities servicing fees - Asset servicing		156			174			179			197			204			226			214			223			231
Foreign Exchange and other trading activities		55			49			56			50			62			75			56			63			55
Other fee revenue		13			18			14			22			21			20			21			25			23
Total noninterest revenue		224			241			249			269			287			321			291			311			309
Net interest revenue (expense)		19			21			22			20			26			27			29			24			32
Total revenue		243			262			271			289			313			348			320			335			341
Amortization of intangible assets		2			2			2			3			3			3			2			14			2
Other operating expenses		186			198			215			235			242			258			255			278			262
Total operating expenses		188			200			217			238			245			261			257			292			264
Income from continuing operations before taxes (benefits)		55			62			54			51			68			87			63			43			77
Income taxes (benefits)		20			22			17			18			22			28			21			14			25
Net income (loss)	$	35		$	40		$	37		$	33		$	46		$	59		$	42		$	29		$	52
Average loans	$	(25	)	$	1		$	(1	)	$	(20	)	$	(1	)	$	(30	)	$	(1	)	$	—		$	11
Average assets	$	8,211		$	8,117		$	9,048		$	8,484		$	8,376		$	9,248		$	10,159		$	10,523		$	9,641
Average deposits	$	7,010		$	6,859		$	7,753		$	7,077		$	7,111		$	7,570		$	8,737		$	8,975		$	8,536
Average common equity	$	482		$	482		$	482		$	482		$	551		$	551		$	551		$	551		$	593
Average Tier I preferred equity	$	125		$	125		$	125		$	125		$	132		$	132		$	132		$	132		$	114
Market value of assets under management at period end (in billions) (b),(c)	$	95		$	104		$	106		$	103		$	104		$	108		$	115		$	116		$	140
Market value of assets under administration or custody at period end (in billions) (d)	$	3,259		$	3,416		$	3,746		$	3,874		$	4,091		$	4,180		$	4,344		$	4,453		$	4,769
Return on common equity		30	%		33	%		30	%		27	%		34	%		42	%		31	%		21	%		36	%
Pretax operating margin		23	%		24	%		20	%		18	%		22	%		25	%		20	%		13	%		23	%
MEMO:
Securities lending revenue	$	24		$	33		$	25		$	26		$	30		$	38		$	26		$	26		$	29
Total joint venture revenue (e)	$	93		$	101		$	102		$	107		$	119		$	149		$	140		$	143		$	153
Securities on Loan (in billions) (f)	$	150		$	160		$	165		$	161		$	178		$	187		$	206		$	214		$	272
Employees at period-end		3,700			3,800			4,500			4,500			4,500			4,500			4,600			4,600			4,700

(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 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, $393 billion at Dec. 31, 2006 and $398 billion Mar. 31, 2007 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

ISSUER SERVICES - 9 Quarter Trend

(dollar amounts in millions unless otherwise noted; presented on an FTE basis)	2005												2006												2007
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr(a)			1st Qtr
Revenue:
Securities servicing fees - Issuer Services		53			57			46			54			48			54			49			45			52
Other fee revenue		5			—			1			1			1			2			1			2			2
Total noninterest revenue		58			57			47			55			49			56			50			47			54
Net interest revenue (expense)		9			9			10			14			18			20			19			22			24
Total revenue		67			66			57			69			67			76			69			69			78
Amortization of intangible assets		—			—			—			—			—			—			—			—			—
Other operating expenses		60			58			52			60			57			62			56			63			62
Total operating expenses		60			58			52			60			57			62			56			63			62
Income from continuing operations before taxes (benefits)		7			8			5			9			10			14			13			6			16
Income taxes (benefits)		2			3			2			3			3			5			4			2			5
Net income (loss)	$	5		$	5		$	3		$	6		$	7		$	9		$	9		$	4		$	11
Average loans	$	—		$	—		$	—		$	—		$	—		$	1		$	—		$	—		$	2
Average assets	$	1,174		$	1,112		$	1,272		$	1,608		$	1,884		$	1,906		$	1,738		$	1,974		$	2,148
Average deposits	$	921		$	866		$	1,017		$	1,356		$	1,639		$	1,665		$	1,497		$	1,726		$	1,897
Average common equity	$	145		$	145		$	145		$	145		$	149		$	149		$	149		$	149		$	155
Average Tier I preferred equity	$	63		$	63		$	63		$	63		$	53		$	53		$	53		$	53		$	48
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		12	%		15	%		8	%		16	%		18	%		26	%		23	%		11	%		28	%
Pretax operating margin		10	%		12	%		8	%		13	%		15	%		19	%		19	%		9	%		20	%
Employees at period-end		800			800			800			800			800			800			800			800			800

(a) Includes $4 million of severance expense.

Page 12

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

TREASURY SERVICES - 9 Quarter Trend

(dollar amounts in millions unless otherwise noted; presented on an FTE basis)	2005												2006												2007
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Revenue:
Global payment services		65			70			64			62			64			62			61			62			63
Other fee revenue		9			8			7			10			8			9			9			10			12
Total noninterest revenue		74			78			71			72			72			71			70			72			75
Net interest revenue (expense)		34			32			30			32			30			31			29			30			32
Total revenue		108			110			101			104			102			102			99			102			107
Amortization of intangible assets		—			—			1			—			—			—			1						—
Other operating expenses		73			74			73			74			73			73			74			78			79
Total operating expenses		73			74			74			74			73			73			75			78			79
Income from continuing operations before taxes (benefits)		35			36			27			30			29			29			24			24			28
Income taxes (benefits)		13			13			8			11			9			10			8			8			9
Net income (loss)	$	22		$	23		$	19		$	19		$	20		$	19		$	16		$	16		$	19
Average loans	$	529		$	575		$	634		$	543		$	520		$	593		$	615		$	772		$	688
Average assets	$	6,582		$	6,258		$	5,915		$	5,782		$	5,667		$	5,462		$	5,355		$	5,628		$	5,952
Average deposits	$	5,830		$	5,540		$	5,194		$	5,184		$	5,099		$	4,851		$	4,714		$	5,036		$	5,353
Average common equity	$	353		$	353		$	353		$	353		$	342		$	342		$	342		$	342		$	350
Average Tier I preferred equity	$	12		$	12		$	12		$	12		$	11		$	11		$	11		$	11		$	13
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		26	%		26	%		21	%		22	%		23	%		23	%		19	%		18	%		22	%
Pretax operating margin		33	%		32	%		27	%		29	%		28	%		29	%		24	%		23	%		27	%
Employees at period-end		2,700			2,700			2,700			2,700			2,600			2,600			2,600			2,600			2,600

Page 13

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

OTHER - 9 Quarter Trend

(dollar amounts in millions unless otherwise noted; presented on an FTE basis)	2005												2006												2007
	1st Qtr (a)			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr (b)			2nd Qtr			3rd Qtr			4th Qtr (c)			1st Qtr(d)
Revenue:
Global payment services		11			12			11			8			6			6			5			5			3
Other fee revenue		249			68			60			59			59			48			46			43			49
Total noninterest revenue		260			80			71			67			65			54			51			48			52
Net interest revenue (expense)		(21	)		(8	)		(16	)		(18	)		(20	)		(29	)		(21	)		(22	)		(25	)
Total revenue		239			72			55			49			45			25			30			26			27
Credit quality expense		(2	)		3			12			4			1			(3	)		(1	)		5			3
Amortization of intangible assets		—			—			—			—			—			—			—			—			—
Other operating expenses		52			51			58			56			81			58			54			102			56
Total operating expenses		52			51			58			56			81			58			54			102			56
Income from continuing operations before taxes (benefits)		189			18			(15	)		(11	)		(37	)		(30	)		(23	)		(81	)		(32	)
Income taxes (benefits)		70			6			(5	)		(5	)		(3	)		(12	)		—			(97	)		(4	)
Net income (loss)	$	119		$	12		$	(10	)	$	(6	)	$	(34	)	$	(18	)	$	(23	)	$	16		$	(28	)
Average loans	$	1,475		$	1,391		$	1,335		$	1,268		$	841		$	620		$	569		$	566		$	543
Average assets	$	7,909		$	7,884		$	8,160		$	7,869		$	7,911		$	8,350		$	9,725		$	8,061		$	8,350
Average deposits	$	960		$	763		$	746		$	800		$	883		$	1,125		$	4,103		$	1,857		$	918
Average common equity	$	1,661		$	1,570		$	1,592		$	1,597		$	1,565		$	1,590		$	1,720		$	2,081		$	1,633
Average Tier I preferred equity	$	147		$	146		$	141		$	133		$	243		$	236		$	293		$	624		$	540
Market value of assets under management at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under administration or custody at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Return on common equity		n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m
Pretax operating margin		n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m
Employees at period-end (e)		4,000			4,200			4,200			4,000			4,200			4,200			4,100			4,100			4,200

(a) 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.

(b) 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.

(c) 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.

(d) Includes $8 million in merger-related expenses and a $12 million litigation reserve charge.

(e) 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.

n/m - not meaningful

Page 14

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

(dollar amounts in millions unless otherwise noted; presented on an FTE basis)	Asset Management									Wealth Management									Asset Servicing
	2006			2005			2004			2006			2005			2004			2006			2005			2004
Revenue:
Asset and wealth management		1,691			1,365			1,191			374			331			300			—			—			—
Performance fees		358			171			127			—			—			—			—			—			—
Distribution and service fees		415			317			269			—			—			—			—			—			—
Securities servicing fees
Asset servicing		68			62			62			10			10			9			865			706			554
Issuer services		—			—			—			—			—			—			—			—			—
Total securities servicing fees		68			62			62			10			10			9			865			706			554
Global payment services		—			—			—			—			—			—			—			—			—
Other fee revenue		40			9			10			20			21			22			345			277			252
Total noninterest 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
MEMO:
Securities lending revenue																				120			108			76

Note: See pages 9-14 for revenue/expense items impacting respective sector results.

Page 15

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS

(dollar amounts in millions unless otherwise noted; presented on an FTE basis)	Issuer Services									Treasury Services									Other									Consolidated Results
	2006			2005			2004			2006			2005			2004			2006			2005			2004			2006			2005			2004
Revenue:
Asset and wealth management		—			—			—			—			—			—			—			—			—			2,065			1,696			1,491
Performance fees		—			—			—			—			—			—			—			—			—			358			171			127
Distribution and service		—			—			—			—			—			—			—			—			—			415			317			269
Securities servicing fees																				—			—
Asset servicing		—			—			—			2			—			3			—			—			—			945			778			628
Issuer services		196			210			255			—			—			—			—			—			—			196			210			255
Total securities servicing fees		196			210			255			2			—			3			—			—			—			1,141			988			883
Global payment services		—			—			—			249			261			260			22			42			38			271			303			298
Other fee revenue		6			7			2			34			34			30			196			436			323			641			784			639
Total noninterest revenue (a)		202			217			257			285			295			293			218			478			361			4,891			4,259			3,707
Net interest revenue (expense) (b)		79			42			27			120			128			146			(92	)		(63	)		(55	)		476			481			467
Total revenue (c)		281			259			284			405			423			439			126			415			306			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		238			230			230			298			294			281			295			217			216			4,023			3,335			2,981
Total operating expenses		238			230			230			299			295			281			295			217			216			4,067			3,362			3,000
Income from continuing operations before taxes (benefits)		43			29			54			106			128			158			(171	)		181			105			1,298			1,361			1,188
Income taxes (benefits) (c)		14			10			18			35			45			54			(112	)		66			37			366			477			407
Income (loss) from continuing operations before cumulative effect of accounting change		29			19			36			71			83			104			(59	)		115			68			932			884			781
Income from discontinued operations after-tax		—			—			—			—			—			—			—			—			—			(34	)		(102	)		15
Net income (loss)	$	29		$	19		$	36		$	71		$	83		$	104		$	(59	)	$	115		$	68		$	898		$	782		$	796
Average loans (d)	$	—		$	—		$	—		$	626		$	571		$	620		$	648		$	1,365		$	1,702		$	6,738		$	7,194		$	7,307
Average assets (e)	$	1,875		$	1,293		$	1,053		$	5,527		$	6,131		$	6,453		$	8,517		$	7,955		$	6,508		$	39,872		$	37,304		$	34,003
Average deposits	$	1,632		$	1,041		$	788		$	4,924		$	5,435		$	5,488		$	2,000		$	816		$	652		$	25,542		$	23,210		$	20,350
Average common equity	$	149		$	145		$	133		$	342		$	353		$	611		$	1,740		$	1,604		$	993		$	4,332		$	4,121		$	3,832
Average Tier I preferred equity	$	53		$	63		$	62		$	11		$	12		$	2		$	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		20	%		13	%		27	%		21	%		24	%		17	%		n/m			n/m			n/m			22	%		21	%		20	%
Pretax operating margin		15	%		11	%		19	%		26	%		30	%		36	%		n/m			n/m			n/m			24	%		29	%		28	%
Pretax operating margin (f)																													26	%		28	%		27	%
Employees at period-end		800			800			800			2,600			2,700			2,700			4,100			4,000			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—9 Quarter Trend page.

Note: See pages 9-14 for revenue/expense items impacting respective sector results.

n/m - not meaningful

Page 16

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 9 Quarter Trend

NONPERFORMING ASSETS

	2005												2006												2007
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Nonperforming loans:
Commercial and financial	$	9		$	7		$	7		$	1		$	1		$	—		$	1		$	—		$	—
Personal		4			4			3			2			2			2			2			1			1
Commercial real estate		—			—			—			—			—			—			—			—			1
Lease finance assets		15			15			27			13			10			12			1			1			1
Total nonperforming loans		28			26			37			16			13			14			4			2			3
Total acquired property		—			—			—			—			3			—			—			2			—
Total nonperforming assets	$	28		$	26		$	37		$	16		$	16		$	14		$	4		$	4		$	3
Nonperforming loans as a percentage of total loans		0.39	%		0.34	%		0.48	%		0.24	%		0.19	%		0.20	%		0.07	%		0.04	%		0.05	%
Nonperforming assets as a percentage of Tier I capital plus the reserve for loan losses		0.98	%		0.87	%		1.23	%		0.53	%		0.51	%		0.44	%		0.12	%		0.12	%		0.08	%(a)

(a) Preliminary

Page 17

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS - 9 Quarter Trend

PROVISION AND RESERVE FOR CREDIT EXPOSURE

	2005												2006												2007
(dollar amounts in millions)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr
Reserve Activity:
Loan losses		98			87			87			80			63			60			58			55			56
Unfunded commitments		67			77			81			77			78			82			81			80			84
Reserve at beginning of period	$	165		$	164		$	168		$	157		$	141		$	142		$	139		$	135		$	140
Total credit losses		(1	)		—			(24	)		(15	)		—			(1	)		—			—			—
Total recoveries		1			1			1			1			—			1			—			—			—
Sub-total - net credit recoveries (losses)	$	—		$	1		$	(23	)	$	(14	)	$	—		$	—		$	—		$	—		$	—
Credit losses on loans transferred to held for sale		—			—			—			—			—			—			—			—			—
Total net credit recoveries (losses)	$	—		$	1		$	(23	)	$	(14	)	$	—		$	—		$	—		$	—		$	—
Impact of disposals and acquisitions		—			—			—			—			—			—			—			—			—
Securitizations		—			—			—			—			—			—			—			—			—
Loss on sale of commitments		—			—			—			—			—			—			—			—			—
Provision for credit losses		(2	)		3			12			4			1			(3	)		(1	)		5			3
Reclass of provision to discontinued operations		1			—			—			1			—			—			—			—			—
Reserves transferred to assets of discontinued operations		—			—			—			—			—			—			(3	)		—			—
Reserves transferred to held for sale		—			—			—			(7	)		—			—			—			—			—
Reserve at end of period	$	164		$	168		$	157		$	141		$	142		$	139		$	135		$	140		$	143
Reserve for loan losses	$	87		$	87		$	80		$	63		$	60		$	58		$	55		$	56		$	52
Reserve for unfunded commitments		77			81			77			78			82			81			80			84			91
Reserve at end of period	$	164		$	168		$	157		$	141		$	142		$	139		$	135		$	140		$	143
Reserve for loan losses as a percentage of total loans (a)		1.23	%		1.15	%		1.05	%		0.96	%		0.91	%		0.84	%		0.93	%		0.94	%		0.85	%
Reserve for unfunded commitments as a percentage of unfunded commitments (a)		0.54	%		0.58	%		0.55	%		0.58	%		0.62	%		0.61	%		0.60	%		0.62	%		0.66	%
Annualized net credit losses to average loans		—	%		—	%		1.23	%		0.77	%		—	%		—	%		—	%		—	%		—	%

(a) At period end.

Page 18