1. NYSE:BK 2/17 close $27.71 July 2, 2007 - BK acquires Mellon Financial
Creates largest global custodian with over $16 trillion (‘07)
Merger integration completed end of 2009

2. Business Overview
Core competencies in institutional services, private banking, and asset management
Global client base of leading financial institutions, corporations, government entities, endowments, and foundations
Issuer : not standard debt and equity, things like depositary receipt services, etc.
Treasury S: Major exporting companies need efficiency in liquidity and risk mgmt
Benefits is they are a marketmaker in over 100 currencies

3. Asset Servicing (33%) AUC 1 BNY Mellon 22.3 2 State Street 18.8 3
$Trillions 1
BNY Mellon
22.3 2
State Street
18.8 3
JP Morgan
14.9 4
Citi
12.1 5
BNP Paribas
5.7 6
Soc Gen
4.5 7
Northern Trust
3.7
all others
~18.0
Custodian
ETF – played role in midcap SPDRs, QQQ
Securities lending – leverage and margin calls
AAA derivatives counterparty, more on execution
Hedge Fund administation is big
Technology consulting, outsourcing, risk, accounting

4. Asset Management (18%) $1.0+ trillion AUM
Evolving to compete in non-U.S. markets while increasing market share in the U.S. institutional market
Separation of alpha and beta, and risk management in high demand

5. Asset Management (18%)
• Moving from low margin activities to high margin activities

6. Diversified Holdings Over $1 trillion AUM
Successful mult-iboutique model

7. BK to acquire PNC’s GIS February 2, 2010
Will acquire PNC’s Global Investment Servicing unit for $2.31BB
BK will sell $800MM in equity to fund deal and cover the balance with cash on hand
In CY ’09, GIS did $781MM in revenue and $63MM net income
PNC looking to exit all or most of its $7.76BB in TARP this year
Complements multiple business lines
e.g. Asset Servicing (custody, mutual fund admin., alt. investments)
Expands BNY Mellon’s fund services to compete globally
Significant opportunities to realize revenue and cost synergies
BK’s merger with Mellon in 2007 realized cost synergies of $700MM (equivalent to 8.5% 2006 expenses)
w/ revenue synergies, expected IRR ~20%
Accretive (expected) by $0.01 in 2010 and $ in 2011
Analysts believe BK will remain accretive afterwards and agree with accretion schedule.

8. SRI Report SRI Assets SRI Liabilities
Pursue Energy Star, LEED and ISO certification in new buildings/offices
Investments in alternative energy strategies and minimizing waste output
Launched 2 SRI funds and increased flows to socially responsible investment products
Voluntary Carbon Unit Registry client numbers increased 200%, VCU volume increased 600%.
SRI Liabilities
Questionable involvement in predatory lending practices and derivative trading
Recommendation: SRI report does not affect the value of BNY Mellon
Analysts believe BK will remain accretive afterwards and agree with accretion schedule.

9. NYSE:BK Revenue Drivers July 2, 2007 - BK acquires Mellon Financial
Creates largest global custodian with over $16 trillion (‘07)

10. Revenue Growth Q3 ’09 writedown on securities portfolio
(accounted for in revenue as net securities gains)
$Millions
Fee revenue steadily increasing on trend line, thus revenue is back on track to where it was prior and seems to have hit an inflection point

11. Fee-based business in client-centric business
Revenue Breakdown
Fee-based business in client-centric business

12. Leader in diverse business segments
Client Retention
Leader in diverse business segments

13. Sustained and deliberate growth in non-U.S. markets
Geographic Growth
Sustained and deliberate growth in non-U.S. markets
Percentage of overseas employees increased from 22% in 07
To 28% in 09
Goal of ~35% by 2012

14. NYSE:BK Macroeconomic Trends
July 2, BK acquires Mellon Financial
Creates largest global custodian with over $16 trillion (‘07)

15. U.S. Monthly Savings Rate Trend Impacts Asset & Wealth Mgmt
Derivative trend on BK, as higher savings lead to increased
asset and wealth management generally

16. Equity Market Values Impacts Asset & Wealth Mgmt, and Asset Srvc
A 100 point increase in the S&P 500 impacts fee revenue by ~1-2%
and EPS by $ $0.07

17. Equity Market Values Impacts Asset & Wealth Mgmt, and Asset Srvc
A 100 bp increase in the Fed Funds rate results in a
$500MM increase in pre-tax income

18. TED Spread Trends Impacts Securities Lending
Wider spreads lead to increased securities lending revenue

19. FX Volume & Volatility Trends Impacts Asset Servicing fees (for. ex.)
Fee-based business feeds off volume and volatility

20. NYSE:BK
Financials

21. Some Key Numbers Market Cap: $33.4B (Large Cap)
Shares Outstanding: 1.2B
Debt/Capital: 52.3%
ROE: 9.8%
Revenue: $8.28B
Beta: 0.66 (82% institutionally owned)
1year EPS forecast: 6.82%
5year EPS forecast: 13.50%
Analysts believe BK will remain accretive afterwards and agree with accretion schedule.

22. Strong Liquidity Position
Analysts believe BK will remain accretive afterwards and agree with accretion schedule.

23. Superior Credit Rating
Analysts believe BK will remain accretive afterwards and agree with accretion schedule.

24. Financials: EPS
Analysts believe BK will remain accretive afterwards and agree with accretion schedule.

25. Financials: Revenue
Analysts believe BK will remain accretive afterwards and agree with accretion schedule.

26. High and Stable Dividend Yield
Analysts believe BK will remain accretive afterwards and agree with accretion schedule.

27. Financials
Even though third quarter is usually seasonally weak, revenues at BONY were up 4% sequentially, excluding securities losses.
Fee revenue up by 4% as AUC up by 7%
Assets under management up by 4%
Reduced the unrealized loss in its securities portfolio by more than 80% to $1.4 billion.
On May 7, 09 regulators announced that Bank of New York Mellon would not be required to issue more capital as a result of the government's stress test
Analysts believe BK will remain accretive afterwards and agree with accretion schedule.

28. Valuation: comparables
Analysts believe BK will remain accretive afterwards and agree with accretion schedule.

29. Future Value Drivers Primary focus on fee based services
Restructuring of portfolio and liquidation of troubled assets to reduce earnings volatility and exposure to market risks
Geographic diversity as a hedge against NA risks
Possibility of increase in Fed Funds rate, volatility in FX markets, TED spreads and s&p
BK’s new business wins (PNC Global Investment Servicing Unit and plans to acquire Corporate Trust Business of CIBC Mellon)
Analysts believe BK will remain accretive afterwards and agree with accretion schedule.

30. Valuation
Modest P/E of 15 (still less than its slower growing competitors) and 2010 EPS estimate of $2.47
Current Price: $27.71
Target Price: $37.05
Undervalued: 33%
Undervalued 78% with P/E of 20 (equal to its competitors)
Analysts believe BK will remain accretive afterwards and agree with accretion schedule.