# EDGAR Filing Document

**Accession Number:** 0001390777
**File Stem:** 0001390777-26-000060
**Filing Date:** 2026-5
**Character Count:** 408159
**Document Hash:** 5d03738074b766f0f8bf6cdc6ad45ccb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001390777-26-000060.hdr.sgml**: 20260501

**ACCESSION NUMBER**: 0001390777-26-000060

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 117

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260501

**DATE AS OF CHANGE**: 20260501

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Bank of New York Mellon Corp
- **CENTRAL INDEX KEY:** 0001390777
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 132614959
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35651
- **FILM NUMBER:** 26928824

**BUSINESS ADDRESS:**
- **STREET 1:** 240 GREENWICH STREET
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10286
- **BUSINESS PHONE:** 212-495-1784

**MAIL ADDRESS:**
- **STREET 1:** 240 GREENWICH STREET
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10286

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Bank of New York Mellon CORP
- **DATE OF NAME CHANGE:** 20070221

?xml version='1.0' encoding='ASCII'? bk-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

**FORM 10-Q** 

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

**For the Quarterly Period Ended March 31, 2026**

or

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

Commission File Number 001-35651

**THE BANK OF NEW YORK MELLON CORPORATION** 

*(Exact name of registrant as specified in its charter)*

---

| | |
|:---|:---|
| **Delaware** | **13-2614959** |
| *(State or other jurisdiction of incorporation or organization)* | *(I.R.S. Employer Identification No.)* |

---

240 Greenwich Street

New York, New York 10286

*(Address of principal executive offices) (Zip Code)*

Registrant's telephone number, including area code – (212) 495-1784

Not Applicable

*(Former name, former address and former fiscal year, if changed since last report)*

---

| | | |
|:---|:---|:---|
| Securities registered pursuant to Section 12(b) of the Act: |  |  |
| Title of each class | Trading <br>symbol(s) | Name of each exchange<br>on which registered |
| Common Stock, $0.01 par value | BK | New York Stock Exchange |
| 6.244% Fixed-to-Floating Rate Normal Preferred Capital Securities of Mellon Capital IV | BK/P | New York Stock Exchange |
| &nbsp;&nbsp;(fully and unconditionally guaranteed by The Bank of New York Mellon Corporation) |  |  |
| Depositary Shares, each representing a 1/4,000th interest in a share of Series K Noncumulative | BK PRK | New York Stock Exchange |
| &nbsp;&nbsp;Perpetual Preferred Stock |  |  |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

As of March 31, 2026, 686,379,045 shares of the registrant's common stock, $0.01 par value per share, were outstanding.

------

**THE BANK OF NEW YORK MELLON CORPORATION**

**First Quarter 2026 Form 10-Q**

**Table of Contents** 

---

| | |
|:---|:---|
| | **Page** |
| **<u>Consolidated Financial Highlights (unaudited)</u>** | [2](#ibb7454214cef4c6cb1cf4d8ba7a71f33_10) |
| **<u>Part I – Financial Information</u>** | |
| &nbsp;&nbsp;Items 2. and 3. Management's Discussion and Analysis of Financial Condition and Results of Operations; Quantitative and Qualitative Disclosures about Market Risk: | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[General](#ibb7454214cef4c6cb1cf4d8ba7a71f33_16) | [4](#ibb7454214cef4c6cb1cf4d8ba7a71f33_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Overview](#ibb7454214cef4c6cb1cf4d8ba7a71f33_19) | [4](#ibb7454214cef4c6cb1cf4d8ba7a71f33_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Highlights of](#ibb7454214cef4c6cb1cf4d8ba7a71f33_25)first quarter 2026[results](#ibb7454214cef4c6cb1cf4d8ba7a71f33_25) | [4](#ibb7454214cef4c6cb1cf4d8ba7a71f33_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Fee and other revenue](#ibb7454214cef4c6cb1cf4d8ba7a71f33_28) | [6](#ibb7454214cef4c6cb1cf4d8ba7a71f33_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Net interest income](#ibb7454214cef4c6cb1cf4d8ba7a71f33_34) | [8](#ibb7454214cef4c6cb1cf4d8ba7a71f33_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Noninterest expense](#ibb7454214cef4c6cb1cf4d8ba7a71f33_46) | [10](#ibb7454214cef4c6cb1cf4d8ba7a71f33_46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Income taxes](#ibb7454214cef4c6cb1cf4d8ba7a71f33_52) | [10](#ibb7454214cef4c6cb1cf4d8ba7a71f33_52) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Review of business segments](#ibb7454214cef4c6cb1cf4d8ba7a71f33_55) | [10](#ibb7454214cef4c6cb1cf4d8ba7a71f33_55) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Critical accounting estimates](#ibb7454214cef4c6cb1cf4d8ba7a71f33_82) | [18](#ibb7454214cef4c6cb1cf4d8ba7a71f33_82) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Consolidated balance sheet review](#ibb7454214cef4c6cb1cf4d8ba7a71f33_85) | [19](#ibb7454214cef4c6cb1cf4d8ba7a71f33_85) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Liquidity and dividends](#ibb7454214cef4c6cb1cf4d8ba7a71f33_112) | [27](#ibb7454214cef4c6cb1cf4d8ba7a71f33_112) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Capital](#ibb7454214cef4c6cb1cf4d8ba7a71f33_115) | [31](#ibb7454214cef4c6cb1cf4d8ba7a71f33_115) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Trading activities and risk management](#ibb7454214cef4c6cb1cf4d8ba7a71f33_118) | [35](#ibb7454214cef4c6cb1cf4d8ba7a71f33_118) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Asset/liability management](#ibb7454214cef4c6cb1cf4d8ba7a71f33_124) | [37](#ibb7454214cef4c6cb1cf4d8ba7a71f33_124) |
| &nbsp;&nbsp;[Supplemental information – Explanation of GAAP](#ibb7454214cef4c6cb1cf4d8ba7a71f33_127)and Non-GAAP financial measures | [39](#ibb7454214cef4c6cb1cf4d8ba7a71f33_127) |
| &nbsp;&nbsp;[Recent accounting and regulatory developments](#ibb7454214cef4c6cb1cf4d8ba7a71f33_154) | [42](#ibb7454214cef4c6cb1cf4d8ba7a71f33_154) |
| &nbsp;&nbsp;[Website information](#ibb7454214cef4c6cb1cf4d8ba7a71f33_160) | [43](#ibb7454214cef4c6cb1cf4d8ba7a71f33_160) |
| &nbsp;&nbsp;&nbsp;Item 1. Financial Statements: | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Consolidated Income Statement (unaudited)](#ibb7454214cef4c6cb1cf4d8ba7a71f33_166) | [44](#ibb7454214cef4c6cb1cf4d8ba7a71f33_166) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Consolidated Comprehensive Income Statement (unaudited)](#ibb7454214cef4c6cb1cf4d8ba7a71f33_172) | [45](#ibb7454214cef4c6cb1cf4d8ba7a71f33_172) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Consolidated Balance Sheet (unaudited)](#ibb7454214cef4c6cb1cf4d8ba7a71f33_178) | [46](#ibb7454214cef4c6cb1cf4d8ba7a71f33_178) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Consolidated Statement of Cash Flows (unaudited)](#ibb7454214cef4c6cb1cf4d8ba7a71f33_184) | [47](#ibb7454214cef4c6cb1cf4d8ba7a71f33_184) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Consolidated Statement of Changes in Equity (unaudited)](#ibb7454214cef4c6cb1cf4d8ba7a71f33_187) | [48](#ibb7454214cef4c6cb1cf4d8ba7a71f33_187) |

---

---

| | |
|:---|:---|
| | **Page** |
| Notes to Consolidated Financial Statements: | |
| &nbsp;&nbsp;[Note 1—Basis of presentation](#ibb7454214cef4c6cb1cf4d8ba7a71f33_196) | [49](#ibb7454214cef4c6cb1cf4d8ba7a71f33_196) |
| &nbsp;&nbsp;[Note 2—Investment securities](#ibb7454214cef4c6cb1cf4d8ba7a71f33_205) | [49](#ibb7454214cef4c6cb1cf4d8ba7a71f33_205) |
| &nbsp;&nbsp;[Note 3—Loans and asset quality](#ibb7454214cef4c6cb1cf4d8ba7a71f33_211) | [53](#ibb7454214cef4c6cb1cf4d8ba7a71f33_211) |
| &nbsp;&nbsp;[Note 4—Goodwill and intangible assets](#ibb7454214cef4c6cb1cf4d8ba7a71f33_232) | [59](#ibb7454214cef4c6cb1cf4d8ba7a71f33_232) |
| &nbsp;&nbsp;[Note 5—Other assets](#ibb7454214cef4c6cb1cf4d8ba7a71f33_235) | [61](#ibb7454214cef4c6cb1cf4d8ba7a71f33_235) |
| &nbsp;&nbsp;[Note 6—Contract revenue](#ibb7454214cef4c6cb1cf4d8ba7a71f33_250) | [62](#ibb7454214cef4c6cb1cf4d8ba7a71f33_250) |
| &nbsp;&nbsp;[Note 7—Net interest income](#ibb7454214cef4c6cb1cf4d8ba7a71f33_262) | [64](#ibb7454214cef4c6cb1cf4d8ba7a71f33_262) |
| &nbsp;&nbsp;[Note 8—Employee benefit plans](#ibb7454214cef4c6cb1cf4d8ba7a71f33_265) | [64](#ibb7454214cef4c6cb1cf4d8ba7a71f33_265) |
| &nbsp;&nbsp;[Note 9—Variable interest entities](#ibb7454214cef4c6cb1cf4d8ba7a71f33_274) | [65](#ibb7454214cef4c6cb1cf4d8ba7a71f33_274) |
| &nbsp;&nbsp;[Note 10—Preferred stock](#ibb7454214cef4c6cb1cf4d8ba7a71f33_280) | [66](#ibb7454214cef4c6cb1cf4d8ba7a71f33_280) |
| &nbsp;&nbsp;[Note 11—Other comprehensive income (loss)](#ibb7454214cef4c6cb1cf4d8ba7a71f33_286) | [67](#ibb7454214cef4c6cb1cf4d8ba7a71f33_286) |
| &nbsp;&nbsp;[Note 12—Fair value measurement](#ibb7454214cef4c6cb1cf4d8ba7a71f33_295) | [68](#ibb7454214cef4c6cb1cf4d8ba7a71f33_295) |
| &nbsp;&nbsp;[Note 13—Fair value option](#ibb7454214cef4c6cb1cf4d8ba7a71f33_313) | [73](#ibb7454214cef4c6cb1cf4d8ba7a71f33_313) |
| &nbsp;&nbsp;[Note 14—Derivative instruments](#ibb7454214cef4c6cb1cf4d8ba7a71f33_316) | [73](#ibb7454214cef4c6cb1cf4d8ba7a71f33_316) |
| &nbsp;&nbsp;[Note 15—Commitments and contingent liabilities](#ibb7454214cef4c6cb1cf4d8ba7a71f33_328) | [80](#ibb7454214cef4c6cb1cf4d8ba7a71f33_328) |
| &nbsp;&nbsp;[Note 16—Business segments](#ibb7454214cef4c6cb1cf4d8ba7a71f33_334) | [86](#ibb7454214cef4c6cb1cf4d8ba7a71f33_334) |
| &nbsp;&nbsp;[Note 17—Supplemental information to the Consolidated Statement of Cash Flows](#ibb7454214cef4c6cb1cf4d8ba7a71f33_340) | [88](#ibb7454214cef4c6cb1cf4d8ba7a71f33_340) |
| [Item 4. Controls and Procedures](#ibb7454214cef4c6cb1cf4d8ba7a71f33_343) | [89](#ibb7454214cef4c6cb1cf4d8ba7a71f33_343) |
| [Forward-looking Statements](#ibb7454214cef4c6cb1cf4d8ba7a71f33_346) | [90](#ibb7454214cef4c6cb1cf4d8ba7a71f33_346) |
| **<u>Part II – Other Information</u>** | |
| &nbsp;&nbsp;[Item 1. Legal Proceedings.](#ibb7454214cef4c6cb1cf4d8ba7a71f33_352) | [93](#ibb7454214cef4c6cb1cf4d8ba7a71f33_352) |
| &nbsp;&nbsp;[Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.](#ibb7454214cef4c6cb1cf4d8ba7a71f33_358) | [93](#ibb7454214cef4c6cb1cf4d8ba7a71f33_358) |
| &nbsp;&nbsp;[Item 5. Other Information.](#ibb7454214cef4c6cb1cf4d8ba7a71f33_361) | [93](#ibb7454214cef4c6cb1cf4d8ba7a71f33_361) |
| &nbsp;&nbsp;[Item 6. Exhibits.](#ibb7454214cef4c6cb1cf4d8ba7a71f33_364) | [93](#ibb7454214cef4c6cb1cf4d8ba7a71f33_364) |
| [Index to Exhibits](#ibb7454214cef4c6cb1cf4d8ba7a71f33_367) | [94](#ibb7454214cef4c6cb1cf4d8ba7a71f33_367) |
| [Signature](#ibb7454214cef4c6cb1cf4d8ba7a71f33_370) | [96](#ibb7454214cef4c6cb1cf4d8ba7a71f33_370) |

---

------

**The Bank of New York Mellon Corporation (and its subsidiaries)**

**Consolidated Financial Highlights (unaudited)**

---

| | | | |
|:---|:---|:---|:---|
| | Quarter ended | Quarter ended | Quarter ended |
| *(dollars in millions, except per share amounts and unless otherwise noted)* | **March 31, 2026** | Dec. 31, 2025 | March 31, 2025 |
| **Results applicable to common shareholders of The Bank of New York Mellon Corporation:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $**1562** | $1427 | $1149 |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic earnings per share | $**2.26** | $2.04 | $1.59 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted earnings per share | $**2.24** | $2.02 | $1.58 |
| Fee and other revenue | $**4039** | $3833 | $3633 |
| Net interest income | **1370** | 1346 | 1159 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenue | $**5409** | $5179 | $4792 |
| Return on common shareholders' equity *(annualized)* | **16.1%** | 14.5% | 12.6% |
| Return on tangible common shareholders' equity *(annualized) –* Non-GAAP *(a)* | **29.3%** | 26.6% | 24.2% |
| Fee revenue as a percentage of total revenue | **70%** | 71% | 71% |
| Non-U.S. revenue as a percentage of total revenue | **36%** | 36% | 33% |
| Pre-tax operating margin | **37%** | 36% | 32% |
| Net interest margin | **1.38%** | 1.38% | 1.30% |
| Net interest margin on a fully taxable equivalent ("FTE") basis – Non-GAAP *(b)* | **1.38%** | 1.38% | 1.30% |
| Assets under custody and/or administration ("AUC/A") at period end *(in trillions) (c)* | $**59.4** | $59.3 | $53.1 |
| Assets under management ("AUM") at period end *(in trillions) (d)* | $**2.1** | $2.2 | $2.0 |
| **Average common shares and equivalents outstanding** *(in thousands)*:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | **691178** | 697540 | 720951 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | **698164** | 705140 | 727398 |
| **Selected average balances:** |  |  |  |
| Interest-earning assets | $**396310** | $387289 | $354687 |
| Total assets | $**461928** | $451213 | $415844 |
| Interest-bearing deposits | $**263497** | $258640 | $234394 |
| Noninterest-bearing deposits | $**54949** | $51842 | $48141 |
| Long-term debt | $**32542** | $32135 | $31216 |
| Preferred stock | $**4984** | $4836 | $4562 |
| Total The Bank of New York Mellon Corporation common shareholders' equity | $**39448** | $39142 | $36980 |
| **Other information at period end:** |  |  |  |
| Cash dividends per common share | $**0.53** | $0.53 | $0.47 |
| Common dividend payout ratio | **24%** | 26% | 30% |
| Common dividend yield *(annualized)* | **1.8%** | 1.8% | 2.3% |
| Closing stock price per common share | $**118.63** | $116.09 | $83.87 |
| Market capitalization | $**81425** | $79897 | $60003 |
| Book value per common share | $**57.48** | $57.36 | $52.82 |
| Tangible book value per common share – Non-GAAP *(a)* | $**31.75** | $31.64 | $28.20 |
| Full-time employees | **47200** | 48100 | 51000 |
| Common shares outstanding *(in thousands)* | **686379** | 688236 | 715434 |

---

2 BNY

------

**Consolidated Financial Highlights (unaudited)** (continued)

---

| | | |
|:---|:---|:---|
| **Regulatory capital and other ratios** | **March 31, 2026** | Dec. 31, 2025 |
| Average liquidity coverage ratio ("LCR") | **111%** | 112% |
| Average net stable funding ratio ("NSFR") | **131%** | 130% |
| **Regulatory capital ratios:** *(e)* |  |  |
| &nbsp;&nbsp;&nbsp;**Advanced Approaches:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Equity Tier 1 ("CET1") ratio | **12.7%** | 13.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tier 1 capital ratio | **15.9** | 16.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total capital ratio | **16.6** | 16.7 |
| &nbsp;&nbsp;&nbsp;**Standardized Approach:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CET1 ratio | **11.0%** | 11.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tier 1 capital ratio | **13.8** | 14.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total capital ratio | **14.6** | 15.4 |
| &nbsp;&nbsp;&nbsp;Tier 1 leverage ratio | **6.0%** | 6.0% |
| &nbsp;&nbsp;&nbsp;Supplementary leverage ratio ("SLR") | **6.6** | 6.7 |
| BNY shareholders' equity to total assets ratio | **8.0%** | 9.4% |
| BNY common shareholders' equity to total assets ratio | **7.0** | 8.4 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Return on tangible common shareholders' equity and tangible book value per common share, both Non-GAAP measures, exclude goodwill and intangible assets, net of deferred tax liabilities. See "Supplemental information – Explanation of GAAP and Non-GAAP financial measures" beginning on page [39](#ibb7454214cef4c6cb1cf4d8ba7a71f33_127) for the reconciliation of these Non-GAAP measures.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;See "Net interest income" on page [8](#ibb7454214cef4c6cb1cf4d8ba7a71f33_34) for a reconciliation of this Non-GAAP measure.*

*(c)&nbsp;&nbsp;&nbsp;&nbsp;Consists of AUC/A primarily from the Asset Servicing line of business and, to a lesser extent, the Clearance and Collateral Management, Issuer Services, Wealth Solutions (formerly Pershing) and Wealth Management lines of business. Includes the AUC/A of CIBC Mellon Trust Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $2.1 trillion at March 31, 2026 $2.2 trillion at Dec. 31, 2025 and $1.9 trillion at March 31, 2025.*

*(d)&nbsp;&nbsp;&nbsp;&nbsp;Represents assets managed in the Investment and Wealth Management business segment.*

*(e)&nbsp;&nbsp;&nbsp;&nbsp;For our CET1, Tier 1 capital and Total capital ratios, our effective capital ratios under U.S. capital rules are the lower of the ratios as calculated under the Standardized and Advanced Approaches. For additional information on our capital ratios, see "Capital" beginning on page [31](#ibb7454214cef4c6cb1cf4d8ba7a71f33_115).*

BNY 3

------

**Part I – Financial Information**

**Items 2. and 3. Management's Discussion and Analysis of Financial Condition and Results of Operations; Quantitative and Qualitative Disclosures about Market Risk**

**General**

In this Quarterly Report on Form 10-Q, references to "our," "we," "us," "BNY," the "Company" and similar terms refer to The Bank of New York Mellon Corporation and its consolidated subsidiaries. The term "Parent" refers to The Bank of New York Mellon Corporation but not its subsidiaries.

Certain business terms used in this report are defined in the "Glossary and Acronyms" section of our Annual Report on Form 10-K for the year ended Dec. 31, 2025 (the "2025 Annual Report").

The following should be read in conjunction with the Consolidated Financial Statements included in this report. Investors should also read the section titled "Forward-looking Statements."

**Overview**

BNY is a global financial services platforms company at the heart of the world's capital markets. For more than 240 years BNY has partnered alongside clients, using its expertise and platforms to help them operate more efficiently and accelerate growth. Today BNY serves over 90% of Fortune 100 companies and nearly all the top 100 banks globally. BNY supports governments in funding local projects and works with over 90% of the top 100 pension plans to safeguard investments for millions of individuals. As of March 31, 2026, BNY oversees $59.4 trillion in assets under custody and/or administration and $2.1 trillion in assets under management.

BNY is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Headquartered in New York City, BNY has been named among Fortune's World's Most Admired Companies and Fast Company's Best Workplaces for Innovators. Additional information is available on www.bny.com. Follow on LinkedIn or visit the BNY Newsroom for the latest company news.

BNY has three business segments, Securities Services, Market and Wealth Services and Investment and Wealth Management, which offer a comprehensive set of capabilities and deep expertise across the investment life cycle, enabling the

Company to provide solutions to buy-side and sell-side market participants, as well as leading institutional and wealth management clients globally.

The diagram below presents our three business segments and lines of business, with the remaining operations in the Other segment.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | The Bank of New York Mellon Corporation | The Bank of New York Mellon Corporation | | |
| Securities<br>Services | Securities<br>Services | Market and Wealth Services | Market and Wealth Services | Investment and Wealth Management | Investment and Wealth Management |
| | Asset<br>Servicing | | Wealth<br>Solutions | | Investment<br>Management |
| | Asset<br>Servicing | | Wealth<br>Solutions | | Investment<br>Management |
| | Issuer<br>Services | | Payments and Trade | | Wealth<br>Management |
| | Issuer<br>Services | | Payments and Trade | | Wealth<br>Management |
| | | | Clearance and Collateral Management | | |
| | | | Clearance and Collateral Management | | |

---

**Highlights of first quarter 2026 results**

We reported net income applicable to common shareholders of $1.56 billion, or $2.24 per diluted common share, in the first quarter of 2026, including the impact of notable items. Notable items in the first quarter of 2026 include severance expense, litigation reserves and a reduction in the Federal Deposit Insurance Corporation ("FDIC") special assessment. Excluding notable items, net income applicable to common shareholders was $1.57 billion (Non-GAAP), or $2.25 (Non-GAAP) per diluted common share, in the first quarter of 2026. Net income applicable to common shareholders was $1.15 billion, or $1.58 per diluted common share, in the first quarter of 2025, including the impact of notable items. Notable items in the first quarter of 2025 include a disposal gain, severance expense, litigation reserves and an increase in the FDIC special assessment. Excluding notable items, net income applicable to common shareholders was $1.15 billion (Non-GAAP), or $1.58 (Non-GAAP) per diluted common share, in the first quarter of 2025.

4 BNY

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The highlights below are based on the first quarter of 2026 compared with the first quarter of 2025, unless otherwise noted.

**•** Total revenue increased 13%, primarily reflecting:

&nbsp;&nbsp;&nbsp;&nbsp;**•** Fee revenue increased 11%, primarily reflecting higher client activity and net new business, higher market values and foreign exchange revenue, and a favorable impact of a weaker U.S. dollar, partially offset by the mix of AUM flows. (See "Fee and other revenue" beginning on page [6](#ibb7454214cef4c6cb1cf4d8ba7a71f33_28).)

&nbsp;&nbsp;&nbsp;&nbsp;**•** Investment and other revenue increased primarily reflecting investment-related gains, partially offset by net investment securities losses. (See "Fee and other revenue" beginning on page [6](#ibb7454214cef4c6cb1cf4d8ba7a71f33_28).)

&nbsp;&nbsp;&nbsp;&nbsp;**•** Net interest income increased 18%, primarily reflecting the continued reinvestment of investment securities at higher yields and balance sheet growth, partially offset by deposit margin compression. (See "Net interest income" on page [8](#ibb7454214cef4c6cb1cf4d8ba7a71f33_34).)

**•** The provision for credit losses was a benefit of $7 million, primarily driven by improvements in commercial real estate exposure, partially offset by changes in macroeconomic and other factors. (See "Allowance for credit losses" on page [25](#ibb7454214cef4c6cb1cf4d8ba7a71f33_97).)

**•** Noninterest expense increased 5%, reflecting higher investments and revenue-related expenses, an unfavorable impact of the weaker U.S. dollar and employee merit increases, partially offset by efficiency savings, lower severance expense and the net impact of adjustments for the FDIC special assessment. (See "Noninterest expense" on page [10](#ibb7454214cef4c6cb1cf4d8ba7a71f33_46).)

**•** Effective tax rate of 19.1% includes a tax benefit in the first quarter of 2026 from the annual vesting of stock awards. (See "Income taxes" on page [10](#ibb7454214cef4c6cb1cf4d8ba7a71f33_52).)

**•** Return on common shareholders' equity ("ROE") was 16.1% for the first quarter of 2026.

**•** Return on tangible common shareholders' equity ("ROTCE") was 29.3% (Non-GAAP) for the first quarter of 2026.

See "Supplemental information – Explanation of GAAP and Non-GAAP financial measures" beginning on page [39](#ibb7454214cef4c6cb1cf4d8ba7a71f33_127) for a reconciliation of these Non-GAAP measures.

**Metrics**

**•** AUC/A of $59.4 trillion increased 12%, primarily reflecting net client inflows, higher market values and the favorable impact of the weaker U.S. dollar.

**•** AUM of $2.1 trillion increased 6%, primarily reflecting higher market values and the favorable impact of the weaker U.S. dollar, partially offset by cumulative net outflows.

**Capital and liquidity**

**•** Our CET1 ratio under the Standardized Approach was 11.0% at March 31, 2026 and 11.9% at Dec. 31, 2025. The decrease primarily reflects higher risk-weighted assets ("RWA") driven by a single-day increase in overnight loan balances on the last day of the quarter, along with higher client activity in agency securities lending and foreign exchange. (See "Capital" beginning on page [31](#ibb7454214cef4c6cb1cf4d8ba7a71f33_115).)

**•** Our Tier 1 leverage ratio was 6.0% at March 31, 2026, a slight decrease compared with Dec. 31, 2025, reflecting higher average assets, largely offset by an increase in Tier 1 capital due to the issuance of preferred stock. (See "Capital" beginning on page [31](#ibb7454214cef4c6cb1cf4d8ba7a71f33_115).)

**•** Returned $1.4 billion to common shareholders, including $983 million of common share repurchases.

BNY 5

------

**Fee and other revenue**

---

| | | | |
|:---|:---|:---|:---|
| **Fee and other revenue** | | | **%** |
| *(dollars in millions, unless otherwise noted)* | **1Q26** | 1Q25 | **change** |
| Investment services fees | $**2652** | $2411 | **10%** |
| Investment management and performance fees *(a)* | **785** | 739 | **6** |
| Foreign exchange revenue | **232** | 156 | **49** |
| Financing-related fees | **62** | 60 | **3** |
| Distribution and servicing fees | **37** | 37 | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fee revenue | **3768** | 3403 | **11** |
| Investment and other revenue | **271** | 230 | **N/M** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fee and other revenue | $**4039** | $3633 | **11%** |
| Fee revenue as a percentage of total revenue | **70%** | 71% |  |
| AUC/A at period end *(in trillions) (b)* | $**59.4** | $53.1 | **12%** |
| AUM at period end *(in billions) (c)* | $**2126** | $2008 | **6%** |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Excludes seed capital gains (losses) related to consolidated investment management funds.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Consists of AUC/A primarily from the Asset Servicing line of business and, to a lesser extent, the Clearance and Collateral Management, Issuer Services, Wealth Solutions (formerly Pershing) and Wealth Management lines of business. Includes the AUC/A of CIBC Mellon of $2.1 trillion at March 31, 2026 and $1.9 trillion at March 31, 2025.*

*(c)&nbsp;&nbsp;&nbsp;&nbsp;Represents assets managed in the Investment and Wealth Management business segment.* 

*N/M – Not meaningful.*

Fee revenue increased 11% compared with the first quarter of 2025, primarily reflecting higher investment services fees, foreign exchange revenue and investment management and performance fees.

Investment and other revenue increased $41 million compared with the first quarter of 2025, primarily reflecting investment-related gains, partially offset by net investment securities losses.

*Investment services fees*

Investment services fees increased 10% compared with the first quarter of 2025, primarily reflecting higher client activity and net new business, and higher market values.

AUC/A totaled $59.4 trillion at March 31, 2026, an increase of 12% compared with March 31, 2025, primarily reflecting net client inflows, higher market values and the favorable impact of the weaker U.S. dollar. AUC/A consisted of 38% equity securities and 62% fixed income securities at March 31, 2026, and 36% equity securities and 64% fixed income securities at March 31, 2025.

See "Securities Services business segment" and "Market and Wealth Services business segment" in "Review of business segments" for additional details.

*Investment management and performance fees* 

Investment management and performance fees increased 6% compared with the first quarter of 2025, primarily reflecting higher market values and the favorable impact of the weaker U.S. dollar, partially offset by the mix of AUM flows. Performance fees were $1 million in the first quarter of 2026 and $5 million in the first quarter of 2025. On a constant currency basis, investment management and performance fees increased 4% (Non-GAAP) compared with the first quarter of 2025. See "Supplemental information – Explanation of GAAP and Non-GAAP financial measures" beginning on page [39](#ibb7454214cef4c6cb1cf4d8ba7a71f33_127) for the reconciliation of Non-GAAP measures.

AUM was $2.1 trillion at March 31, 2026, an increase of 6% compared with March 31, 2025, primarily reflecting higher market values and the favorable impact of the weaker U.S. dollar, partially offset by cumulative net outflows.

See "Investment and Wealth Management business segment" in "Review of business segments" for additional details regarding the drivers of investment management and performance fees, AUM and AUM flows.

6 BNY

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*Foreign exchange revenue*

Foreign exchange revenue is primarily driven by the volume of client transactions and the spread realized on these transactions, both of which are impacted by market volatility, the impact of foreign currency hedging activities and foreign currency remeasurement gain (loss). Foreign exchange revenue increased 49% compared with the first quarter of 2025, primarily reflecting higher client volumes. Foreign exchange revenue is primarily reported in the Securities Services business segment and, to a lesser extent, the Market and Wealth Services and Investment and Wealth Management business segments and the Other segment.

*Financing-related fees*

Financing-related fees, which are primarily reported in the Market and Wealth Services and Securities Services business segments, include capital market fees, loan commitment fees and credit-related fees. Financing-related fees increased 3% compared with the first quarter of 2025, primarily reflecting higher underwriting fees, partially offset by lower commitment fees.

*Investment and other revenue*

Investment and other revenue includes income or loss from consolidated investment management funds, seed capital gains or losses, other trading revenue or loss, renewable energy investments gains, income from corporate and bank-owned life insurance contracts, other investment gains or losses, gains or losses from disposals, expense reimbursements from our CIBC Mellon joint venture, other income or loss and net investment securities gains or losses. The income or loss from consolidated investment management funds should be considered together with the net income or loss attributable to noncontrolling interests, which reflects the portion of

the consolidated funds for which we do not have an economic interest and is reflected below net income as a separate line item on the consolidated income statement. Other trading revenue or loss primarily includes the impact of market-risk hedging activity related to our seed capital investments in investment management funds, non-foreign currency derivative and fixed income trading, and other hedging activity. Other investment gains or losses includes fair value changes of non-readily marketable strategic equity, private equity and other investments. Expense reimbursements from our CIBC Mellon joint venture relate to expenses incurred by BNY on behalf of the CIBC Mellon joint venture. Other income includes various miscellaneous revenues.

The following table provides the components of investment and other revenue.

---

| | | |
|:---|:---|:---|
| **Investment and other revenue** | **Investment and other revenue** | |
| *(in millions)* | **1Q26** |<br>1Q25 |
| Income (loss) from consolidated investment management funds | $**(6)** | $6 |
| Seed capital gains (losses) *(a)* | **(3)** | (6) |
| Other trading revenue | **94** | 71 |
| Renewable energy investments gains | **44** | 15 |
| Corporate/bank-owned life insurance | **48** | 38 |
| Other investments gains (losses) *(b)* | **108** | 24 |
| Disposal gains (losses) | **—** | 40 |
| Expense reimbursements from joint venture | **32** | 31 |
| Other income | **4** | 11 |
| Net investment securities gains (losses) | **(50)** |  |
| &nbsp;&nbsp;&nbsp;Total investment and other revenue | $**271** | $230 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Includes gains (losses) on investments in BNY funds which hedge deferred incentive awards.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Includes strategic equity, private equity and other investments.*

The increase in total investment and other revenue compared with the first quarter of 2025 primarily reflects investment-related gains, partially offset by net investment securities losses.

BNY 7

------

**Net interest income**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Net interest income** | | | **%** | **%** |
| *(dollars in millions)* | **1Q26** | 1Q25 | **change** | **change** |
| Net interest income | $**1370** | $1159 | **18%** | **18%** |
| Add: Tax equivalent adjustment | **—** |  | &nbsp;&nbsp;**N/M** | &nbsp;&nbsp;**N/M** |
| &nbsp;&nbsp;Net interest income (FTE) – Non-GAAP *(a)* | $**1370** | $1159 | **18%** | **18%** |
| Average interest-earning assets | $**396310** | $354687 | **12%** | **12%** |
| Net interest margin | **1.38%** | 1.30% | **8** | **bps** |
| Net interest margin (FTE) – Non-GAAP *(a)* | **1.38%** | 1.30% | **8** | **bps** |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Net interest income (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP include the tax equivalent adjustments on tax-exempt income, which allows for comparisons of amounts arising from both taxable and tax-exempt sources and is consistent with industry practice. The adjustment to an FTE basis has no impact on net income.*

*N/M – Not meaningful.*

*bps – basis points.*

Net interest income increased 18% compared with the first quarter of 2025, primarily reflecting the continued reinvestment of investment securities at higher yields and balance sheet growth, partially offset by deposit margin compression.

Net interest margin increased 8 basis points compared with the first quarter of 2025, primarily reflecting the factors mentioned above.

Average interest-earning assets increased 12% compared with the first quarter of 2025, primarily

reflecting higher average investment securities, interest-bearing deposits with the Federal Reserve and other central banks and loan balances.

Average non-U.S. dollar deposits comprised approximately 25% of our average total deposits in the first quarter of 2026. Approximately 50% of the average non-U.S. dollar deposits in the first quarter of 2026 were euro-denominated.

8 BNY

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Average balances and interest rates** | Quarter ended | Quarter ended | Quarter ended | Quarter ended | Quarter ended | Quarter ended |
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | March 31, 2025 | March 31, 2025 | March 31, 2025 |
| *(dollars in millions; average rates are annualized)* | **Average<br>balance** | **Interest** | **Average<br>rates** | Average<br> balance | Interest | Average<br> rates |
| **Assets** |  |  |  |  |  |  |
| Interest-earning assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits with the Federal Reserve and other central banks | $**97886** | $**781** | **3.19%** | $86038 | $826 | 3.84% |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits with banks | **12049** | **68** | **2.30** | 10083 | 84 | 3.39 |
| &nbsp;&nbsp;Federal funds sold and securities purchased under resale agreements *(a)* | **42848** | **2567** | **24.29** | 41166 | 2922 | 28.79 |
| &nbsp;&nbsp;&nbsp;Investment securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government obligations | **34521** | **299** | **3.50** | 26614 | 230 | 3.49 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. government agency obligations | **63975** | **526** | **3.29** | 63514 | 519 | 3.27 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other securities | **55405** | **473** | **3.45** | 51403 | 462 | 3.62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment securities | **153901** | **1298** | **3.39** | 141531 | 1211 | 3.44 |
| &nbsp;&nbsp;Trading securities *(b)* | **8568** | **90** | **4.26** | 6199 | 81 | 5.29 |
| &nbsp;&nbsp;&nbsp;Loans | **81058** | **1020** | **5.09** | 69670 | 999 | 5.80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets *(b)* | $**396310** | $**5824** | **5.94%** | $354687 | $6123 | 6.97% |
| Noninterest-earning assets | **65618** |  |  | 61157 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $**461928** |  |  | $415844 |  |  |
| **Liabilities and equity** |  |  |  |  |  |  |
| Interest-bearing liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | $**263497** | $**1554** | **2.39%** | $234394 | $1722 | 2.98% |
| &nbsp;&nbsp;Federal funds purchased and securities sold under repurchase agreements *(a)* | **19457** | **2298** | **47.90** | 17566 | 2610 | 60.25 |
| &nbsp;&nbsp;&nbsp;Trading liabilities | **2565** | **27** | **4.17** | 2063 | 23 | 4.56 |
| &nbsp;&nbsp;&nbsp;Payables to customers and broker-dealers | **17636** | **151** | **3.47** | 15142 | 157 | 4.21 |
| &nbsp;&nbsp;&nbsp;Commercial paper | **1945** | **19** | **3.97** | 1279 | 14 | 4.51 |
| &nbsp;&nbsp;&nbsp;Other borrowed funds | **325** | **4** | **5.01** | 288 | 4 | 5.93 |
| &nbsp;&nbsp;&nbsp;Long-term debt | **32542** | **401** | **4.93** | 31216 | 434 | 5.57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | $**337967** | $**4454** | **5.34%** | $301948 | $4964 | 6.66% |
| Total noninterest-bearing deposits | **54949** |  |  | 48141 |  |  |
| Other noninterest-bearing liabilities | **24116** |  |  | 23808 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | **417032** |  |  | 373897 |  |  |
| Total The Bank of New York Mellon Corporation shareholders' equity | **44432** |  |  | 41542 |  |  |
| Noncontrolling interests | **464** |  |  | 405 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $**461928** |  |  | $415844 |  |  |
| Net interest income (FTE) – Non-GAAP *(b)(c)* |  | $**1370** |  |  | $1159 |  |
| Net interest margin (FTE) – Non-GAAP *(b)(c)* |  |  | **1.38%** |  |  | 1.30% |
| Less: Tax equivalent adjustment |  | **—** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net interest income – GAAP |  | $**1370** |  |  | $1159 |  |
| &nbsp;&nbsp;&nbsp;Net interest margin – GAAP |  |  | **1.38%** |  |  | 1.30% |

---

*(a)*&nbsp;&nbsp;&nbsp;&nbsp;*Includes the average impact of offsetting under enforceable netting agreements of approximately $233 billion for the first quarter of 2026 and $224 billion for the first quarter of 2025. On a Non-GAAP basis, excluding the impact of offsetting, the yield on federal funds sold and securities purchased under resale agreements would have been 3.78% for the first quarter of 2026 and 4.46% for the first quarter of 2025. On a Non-GAAP basis, excluding the impact of offsetting, the rate on federal funds purchased and securities sold under repurchase agreements would have been 3.70% for the first quarter of 2026 and 4.37% for the first quarter of 2025. We believe providing rates excluding the impact of netting is useful to investors, as it is more reflective of the actual rates earned and paid.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Average rates were calculated on an FTE basis, at tax rates of approximately 21%.*

*(c)&nbsp;&nbsp;&nbsp;&nbsp;See "Net interest income" on page [8](#ibb7454214cef4c6cb1cf4d8ba7a71f33_34) for the reconciliation of this Non-GAAP measure.*

BNY 9

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**Noninterest expense**

---

| | | | |
|:---|:---|:---|:---|
| **Noninterest expense** | | | **%** |
| *(dollars in millions)* | **1Q26** | 1Q25 | **change** |
| Staff | $**1888** | $1834 | **3%** |
| Software and equipment | **556** | 513 | **8** |
| Professional, legal and other purchased services | **388** | 366 | **6** |
| Sub-custodian and clearing | **151** | 131 | **15** |
| Net occupancy | **123** | 136 | **(10)** |
| Distribution and servicing | **73** | 65 | **12** |
| Business development | **50** | 48 | **4** |
| Bank assessment charges | **24** | 38 | **N/M** |
| Amortization of intangible assets | **9** | 11 | **(18)** |
| Other | **138** | 110 | **25** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | $**3400** | $3252 | **5%** |
| Full-time employees at period-end | **47200** | 51000 | **(7)%** |

---

*N/M – Not meaningful.*

Total noninterest expense increased 5% compared with the first quarter of 2025, reflecting higher investments and revenue-related expenses, an unfavorable impact of the weaker U.S. dollar and employee merit increases, partially offset by efficiency savings, lower severance expense and the net impact of adjustments for the FDIC special assessment.

**Income taxes**

BNY recorded an income tax provision of $386 million (19.1% effective tax rate) in the first quarter of 2026 and $300 million (19.7% effective tax rate) in the first quarter of 2025. The effective tax rate for both quarters includes a tax benefit from the annual vesting of stock awards.

For additional information on income taxes, see Note 11 and Note 25 of the Notes to Consolidated Financial Statements in our 2025 Annual Report.

**Review of business segments**

We have an internal information system that produces performance data along product and service lines for our three principal business segments: Securities Services, Market and Wealth Services and Investment and Wealth Management, and the Other segment.

*Business segment accounting principles*

Our business segment data has been determined on an internal management basis of accounting, rather than the generally accepted accounting principles

("GAAP") used for consolidated financial reporting. These measurement principles are designed so that reported results of the businesses will track their economic performance.

Our business segments are consistent with the structure used by the Chief Executive Officer, our Chief Operating Decision Maker ("CODM"), to make key operating decisions and assess performance. Our CODM evaluates the business segments' operating performance primarily based on fee and other revenue, total revenue, income before income taxes, and pre-tax operating margin. The significant expense information regularly provided to and reviewed by the CODM is total noninterest expense. The CODM considers this information when evaluating the performance of each business segment and in making decisions about allocating capital and other resources to each business segment.

For information on the accounting principles of our business segments, see Note 16 of the Notes to Consolidated Financial Statements. For information on the primary products and services in each line of business, the primary types of revenue by line of business and how our business segments are presented and analyzed, see Note 23 of the Notes to Consolidated Financial Statements in our 2025 Annual Report.

Business segment results are subject to reclassification when organizational changes are made, or for refinements in revenue and expense allocation methodologies. Refinements are typically reflected on a prospective basis. In the first quarter of

10 BNY

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2026, we realigned clients in Managed Accounts Solutions from the Asset Servicing line of business in the Securities Services business segment to the Wealth Solutions (formerly Pershing) line of business in the Market and Wealth Services business segment. Prior period amounts were revised for comparability.

The results of our business segments may be influenced by client and other activities that vary by quarter. In the first quarter, staff expense typically increases, reflecting the vesting of long-term stock awards for retirement-eligible employees. The timing of our annual employee merit increases also impacts staff expense. The annual employee merit increases are effective in March. In the third quarter, volume-related fees may decline due to reduced client activity. In the fourth quarter, we typically incur higher business development and marketing expenses. In our Investment and Wealth Management business segment, performance fees are typically higher in the fourth quarter, as that quarter represents the end of the measurement period for many of the performance fee-eligible relationships.

The results of our business segments may also be impacted by the translation of financial results denominated in foreign currencies into the U.S. dollar. We are primarily impacted by activities denominated in the British pound and the euro. On a

consolidated basis and in our Securities Services and Market and Wealth Services business segments, we typically have more foreign currency-denominated expenses than revenues. However, our Investment and Wealth Management business segment typically has more foreign currency-denominated revenues than expenses. Overall, currency fluctuations impact the year-over-year growth rate in the Investment and Wealth Management business segment more than the Securities Services and Market and Wealth Services business segments. However, currency fluctuations, in isolation, are not expected to significantly impact net income on a consolidated basis.

Fee revenue in the Investment and Wealth Management business segment, and, to a lesser extent, in the Securities Services and Market and Wealth Services business segments, is impacted by global market fluctuations. At March 31, 2026, we estimated that a 5% change in global equity markets, spread evenly throughout the year, would impact fee revenue by less than 1% and diluted earnings per common share by $0.05 to $0.08.

See Note 16 of the Notes to Consolidated Financial Statements for the consolidating schedules, which show the contribution of our business segments to our overall profitability.

BNY 11

------

*Securities Services business segment*

---

| | | | |
|:---|:---|:---|:---|
| *(dollars in millions, unless otherwise noted)* |  |  | **%** |
| *(dollars in millions, unless otherwise noted)* | **1Q26** | 1Q25 | **change** |
| Revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment services fees: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset Servicing *(a)* | $**1170** | $1050 | **11%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuer Services | **278** | 267 | **4** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment services fees | **1448** | 1317 | **10** |
| &nbsp;&nbsp;&nbsp;Foreign exchange revenue | **196** | 136 | **44** |
| &nbsp;&nbsp;Other fees *(b)* | **74** | 65 | **14** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fee revenue | **1718** | 1518 | **13** |
| &nbsp;&nbsp;Investment and other revenue | **203** | 140 | **N/M** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fee and other revenue | **1921** | 1658 | **16** |
| &nbsp;&nbsp;&nbsp;Net interest income | **757** | 630 | **20** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | **2678** | 2288 | **17** |
| Provision for credit losses | **(11)** | 8 | **N/M** |
| Noninterest expense *(a)* | **1648** | 1569 | **5** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes *(a)* | $**1041** | $711 | **46%** |
| Pre-tax operating margin *(a)* | **39%** | 31% |  |
| Securities lending revenue *(c)* | $**72** | $52 | **38%** |
| **<u>Total revenue by line of business</u>:** |  |  |  |
| &nbsp;&nbsp;Asset Servicing | $**2170** | $1774 | **22%** |
| &nbsp;&nbsp;Issuer Services | **508** | 514 | **(1)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenue by line of business | $**2678** | $2288 | **17%** |
| **<u>Selected average balances</u>:** |  |  |  |
| Average loans | $**12265** | $11347 | **8%** |
| Average deposits *(a)* | $**197789** | $175853 | **12%** |
| **<u>Selected metrics</u>:** |  |  |  |
| AUC/A at period end *(in trillions) (a)(d)* | $**42.7** | $37.9 | **13%** |
| Market value of securities on loan at period end *(in billions) (e)* | $**629** | $504 | **25%** |
| <u>Issuer Services</u>: |  |  |  |
| Total debt serviced at period end *(in trillions)* | $**15.0** | $13.9 | **8%** |
| Number of Depositary Receipts programs at period end | **1632** | 1576 | **4%** |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;In the first quarter of 2026, we realigned clients in Managed Accounts Solutions from the Asset Servicing line of business to the Wealth Solutions (formerly Pershing) line of business in the Market and Wealth Services business segment. Prior period amounts were revised for comparability.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Other fees primarily include financing-related fees.* 

*(c)&nbsp;&nbsp;&nbsp;&nbsp;Included in investment services fees reported in the Asset Servicing line of business.* 

*(d)&nbsp;&nbsp;&nbsp;&nbsp;Consists of AUC/A primarily from the Asset Servicing line of business and, to a lesser extent, the Issuer Services line of business. Includes the AUC/A of CIBC Mellon of $2.1 trillion at March 31, 2026 and $1.9 trillion at March 31, 2025.*

*(e)&nbsp;&nbsp;&nbsp;&nbsp;Represents the total amount of securities on loan in our agency securities lending program. Excludes securities for which BNY acts as agent on behalf of CIBC Mellon clients, which totaled $73 billion at March 31, 2026 and $62 billion at March 31, 2025.*

*N/M – Not meaningful.*

12 BNY

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*Business segment description*

The Securities Services business segment consists of two distinct lines of business, Asset Servicing and Issuer Services, which provide business solutions across the transaction life cycle to our global asset owner and asset manager clients. We are one of the leading global investment services providers, with $42.7 trillion of AUC/A at March 31, 2026. For information on the drivers of the Securities Services fee revenue, see Note 9 of the Notes to Consolidated Financial Statements in our 2025 Annual Report.

The Asset Servicing business provides a comprehensive suite of solutions. We are one of the largest global custody, fund administrator and front-to-back outsourcing service providers. We offer services for the safekeeping of assets in capital markets globally as well as fund accounting services, exchange-traded funds servicing, transfer agency, trust and depository, front-to-back capabilities, data and analytics solutions and digital asset custody and administration services for our clients. We deliver foreign exchange, and securities lending and financing solutions, on both an agency and principal basis. Our agency securities lending program is one of the largest lenders of U.S. and non-U.S. securities, servicing a lendable asset pool of approximately $6.2 trillion in 35 markets. Our market-leading liquidity services portal enables cash investments for institutional clients and includes fund research and analytics.

The Issuer Services business includes Corporate Trust and Depositary Receipts. Our Corporate Trust business delivers a full range of issuer and related investor services, including trustee, paying agency, fiduciary, escrow and other financial services. We are a leading provider to the debt capital markets, providing customized and market-driven solutions to investors, bondholders and lenders. Our Depositary Receipts business drives global investing by providing servicing and value-added solutions that enable, facilitate and enhance cross-border trading, clearing, settlement and ownership. We are one of the largest providers of depositary receipts services in the world, partnering with leading companies from more than 50 countries.

*Review of financial results*

AUC/A of $42.7 trillion increased 13% compared with March 31, 2025, primarily reflecting net client inflows, higher market values and the favorable impact of the weaker U.S. dollar.

Total revenue of $2.7 billion increased 17% compared with the first quarter of 2025. The drivers of total revenue by line of business are indicated below.

Asset Servicing revenue of $2.2 billion increased 22% compared with the first quarter of 2025, primarily reflecting higher net interest income, first quarter 2026 investment gains and higher client activity, foreign exchange revenue and market values.

Issuer Services revenue of $508 million decreased 1% compared with the first quarter of 2025, primarily reflecting a first quarter 2025 disposal gain, partially offset by higher Corporate Trust revenue.

Market and regulatory trends are driving investable assets toward lower fee asset management products at reduced margins for our clients. These dynamics are also negatively impacting our investment services fees. However, at the same time, these trends are providing additional outsourcing opportunities as clients and other market participants seek to comply with regulations and reduce their operating costs.

Noninterest expense of $1.6 billion increased 5% compared with the first quarter of 2025, primarily reflecting higher investments and revenue-related expenses, the unfavorable impact of the weaker U.S. dollar and employee merit increases, partially offset by efficiency savings.

BNY 13

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*Market and Wealth Services business segment*

---

| | | | |
|:---|:---|:---|:---|
| *(dollars in millions, unless otherwise noted)* |  |  | **%** |
| *(dollars in millions, unless otherwise noted)* | **1Q26** | 1Q25 | **change** |
| Revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment services fees: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wealth Solutions *(a)* | $**544** | $515 | **6%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments and Trade | **220** | 209 | **5** |
| &nbsp;&nbsp;&nbsp;&nbsp;Clearance and Collateral Management | **430** | 362 | **19** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment services fees | **1194** | 1086 | **10** |
| &nbsp;&nbsp;&nbsp;Foreign exchange revenue | **36** | 29 | **24** |
| &nbsp;&nbsp;Other fees *(b)* | **70** | 65 | **8** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fee revenue | **1300** | 1180 | **10** |
| &nbsp;&nbsp;&nbsp;Investment and other revenue | **21** | 21 | **N/M** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fee and other revenue | **1321** | 1201 | **10** |
| &nbsp;&nbsp;&nbsp;Net interest income | **571** | 497 | **15** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | **1892** | 1698 | **11** |
| Provision for credit losses | **(6)** | 4 | **N/M** |
| Noninterest expense *(a)* | **937** | 881 | **6** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes *(a)* | $**961** | $813 | **18%** |
| Pre-tax operating margin *(a)* | **51%** | 48% |  |
| **<u>Total revenue by line of business</u>:** |  |  |  |
| &nbsp;&nbsp;Wealth Solutions *(a)* | $**783** | $731 | **7%** |
| &nbsp;&nbsp;Payments and Trade | **545** | 477 | **14** |
| &nbsp;&nbsp;Clearance and Collateral Management | **564** | 490 | **15** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenue by line of business | $**1892** | $1698 | **11%** |
| **<u>Selected average balances</u>:** |  |  |  |
| Average loans | $**52921** | $42986 | **23%** |
| Average deposits *(a)* | $**103043** | $91906 | **12%** |
| **<u>Selected metrics</u>:** |  |  |  |
| AUC/A at period end *(in trillions) (a)(c)* | $**16.5** | $14.9 | **11%** |
| <u>Wealth Solutions (formerly Pershing)</u>: |  |  |  |
| AUC/A at period end *(in trillions) (a)* | $**3.3** | $2.9 | **14%** |
| Net new assets (U.S. platform) *(in billions) (d)* | $**22** | $11 | **N/M** |
| Daily average revenue trades ("DARTs") (U.S. platform) *(in thousands)* | **352** | 298 | **18%** |
| Average active clearing accounts *(in thousands)* | **8601** | 8406 | **2%** |
| <u>Payments and Trade</u>: |  |  |  |
| Average daily U.S. dollar payment volumes | **257960** | 244673 | **5%** |
| <u>Clearance and Collateral</u> <u>Management</u>: |  |  |  |
| Average collateral balances *(in billions)* | $**7783** | $6576 | **18%** |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;In the first quarter of 2026, we realigned clients in Managed Accounts Solutions from the Asset Servicing line of business in the Securities Services business segment to the Wealth Solutions (formerly Pershing) line of business. Prior period amounts were revised for comparability.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Other fees primarily include financing-related fees.* 

*(c)&nbsp;&nbsp;&nbsp;&nbsp;Consists of AUC/A from the Clearance and Collateral Management and Wealth Solutions (formerly Pershing) lines of business.* 

*(d)&nbsp;&nbsp;&nbsp;&nbsp;Net new assets represent net flows of assets (e.g., net cash deposits and net securities transfers, including dividends and interest) in customer accounts in Pershing LLC, a U.S. broker-dealer.* 

*N/M – Not meaningful.*

14 BNY

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*Business segment description*

The Market and Wealth Services business segment consists of three distinct lines of business, Wealth Solutions (formerly Pershing), Payments and Trade and Clearance and Collateral Management, which provide business services and technology solutions to entities including financial institutions, corporations, foundations and endowments, public funds and government agencies. For information on the drivers of the Market and Wealth Services fee revenue, see Note 9 of the Notes to Consolidated Financial Statements in our 2025 Annual Report.

Wealth Solutions (formerly Pershing) provides execution, clearing, custody and technology solutions, delivering operational support to broker-dealers, wealth managers and registered investment advisors ("RIAs") globally.

Our Payments and Trade business is a leading provider of global payments, liquidity management and trade finance services for financial institutions, corporations and the public sector.

Our Clearance and Collateral Management business clears and settles equity and fixed-income transactions globally and serves as custodian for tri-party repo collateral worldwide. We are the primary provider of U.S. government securities clearance and a provider of non-U.S. government securities clearance. Our collateral services include collateral management, administration and segregation. We offer innovative solutions and industry expertise that help financial institutions

and institutional investors with their financing, risk and balance sheet opportunities.

*Review of financial results*

AUC/A of $16.5 trillion increased 11% compared with March 31, 2025, primarily reflecting net client inflows and higher market values.

Total revenue of $1.9 billion increased 11% compared with the first quarter of 2025. The drivers of total revenue by line of business are indicated below.

Wealth Solutions (formerly Pershing) revenue of $783 million increased 7% compared with the first quarter of 2025, primarily reflecting higher net interest income, market values and client activity.

Payments and Trade revenue of $545 million increased 14% compared with the first quarter of 2025, primarily reflecting higher net interest income and net new business.

Clearance and Collateral Management revenue of $564 million increased 15% compared with the first quarter of 2025, primarily reflecting higher collateral management balances and clearance volumes.

Noninterest expense of $937 million increased 6% compared with the first quarter of 2025, primarily reflecting higher investments, employee merit increases, higher revenue-related expenses and the unfavorable impact of the weaker U.S. dollar, partially offset by efficiency savings.

BNY 15

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*Investment and Wealth Management business segment*

---

| | | | |
|:---|:---|:---|:---|
| | | | **%** |
| *(dollars in millions)* | **1Q26** | 1Q25 | **change** |
| Revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment management fees | $**785** | $735 | **7%** |
| &nbsp;&nbsp;&nbsp;Performance fees | **1** | 5 | **N/M** |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment management and performance fees *(a)* | **786** | 740 | **6** |
| &nbsp;&nbsp;&nbsp;Distribution and servicing fees | **70** | 68 | **3** |
| &nbsp;&nbsp;Other fees *(b)* | **(83)** | (75) | **N/M** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fee revenue | **773** | 733 | **5** |
| &nbsp;&nbsp;&nbsp;Investment and other revenue *(c)* | **(1)** | 5 | **N/M** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fee and other revenue | **772** | 738 | **5** |
| &nbsp;&nbsp;&nbsp;Net interest income | **53** | 41 | **29** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | **825** | 779 | **6** |
| Provision for credit losses | **9** | 2 | **N/M** |
| Noninterest expense | **726** | 714 | **2** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes | $**90** | $63 | **43%** |
| Pre-tax operating margin | **11%** | 8% |  |
| **<u>Total revenue by line of business</u>:** |  |  |  |
| &nbsp;&nbsp;Investment Management | $**550** | $518 | **6%** |
| &nbsp;&nbsp;Wealth Management | **275** | 261 | **5** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue by line of business | $**825** | $779 | **6%** |
| **<u>Selected average balances</u>:** |  |  |  |
| Average loans | $**14233** | $13537 | **5%** |
| Average deposits | $**9592** | $9917 | **(3)%** |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;On a constant currency basis, investment management and performance fees increased 4% (Non-GAAP) compared with the first quarter of 2025. See "Supplemental information – Explanation of GAAP and Non-GAAP financial measures" beginning on page [39](#ibb7454214cef4c6cb1cf4d8ba7a71f33_127) for the reconciliation of this Non-GAAP measure.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Other fees primarily include investment services fees.*

*(c)&nbsp;&nbsp;&nbsp;&nbsp;Investment and other revenue and total fee and other revenue are net of income (loss) attributable to noncontrolling interests related to consolidated investment management funds.*

*N/M – Not meaningful.*

16 BNY

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---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **AUM trends** | | | | | | | **1Q26 vs.** | **1Q26 vs.** |
| *(dollars in billions)* | **1Q26** | 4Q25 | 3Q25 |  | 2Q25 | 1Q25 | **4Q25** | **1Q25** |
| **AUM by product type:** *(a)* |  |  |  |  |  |  |  |  |
| Equity | $**172** | $179 | $180 |  | $168 | $156 | **(4)%** | **10%** |
| Fixed income | **261** | 262 | 257 |  | 248 | 234 | **—** | **12** |
| Index | **497** | 517 | 512 |  | 488 | 470 | **(4)** | **6** |
| Liability-driven investments | **530** | 539 | 537 |  | 588 | 549 | **(2)** | **(3)** |
| Multi-asset and alternative investments | **181** | 186 | 181 |  | 173 | 167 | **(3)** | **8** |
| Cash | **485** | 495 | 475 |  | 441 | 432 | **(2)** | **12** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total AUM | $**2126** | $2178 | $2142 |  | $2106 | $2008 | **(2)%** | **6%** |
| **Changes in AUM:** *(a)* |  |  |  |  |  |  |  |  |
| Beginning balance of AUM | $**2178** | $2142 | $2106 |  | $2008 | $2029 |  |  |
| Net inflows (outflows): |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Long-term strategies: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Equity | **(4)** | (4) | (8) |  | (3) | (3) |  |  |
| &nbsp;&nbsp;&nbsp;Fixed income | **3** | 5 | 7 |  | 5 | 2 |  |  |
| &nbsp;&nbsp;&nbsp;Liability-driven investments | **1** | (15) | (23) |  |  | 1 |  |  |
| &nbsp;&nbsp;&nbsp;Multi-asset and alternative investments | **—** | (1) | (1) |  | (4) | (2) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total long-term active strategies inflows (outflows) | **—** | (15) | (25) |  | (2) | (2) |  |  |
| &nbsp;&nbsp;&nbsp;Index | **(7)** | (8) | (8) |  | (22) | (11) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total long-term strategies (outflows) | **(7)** | (23) | (33) |  | (24) | (13) |  |  |
| &nbsp;&nbsp;Short-term strategies: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | **(10)** | 20 | 34 |  | 7 | (5) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net inflows (outflows) | **(17)** | (3) | 1 |  | (17) | (18) |  |  |
| Net market impact | **(23)** | 40 | 30 |  | 70 | (25) |  |  |
| Net currency impact | **(12)** | (1) | (10) |  | 45 | 22 |  |  |
| Other | **—** |  | 15 | *(b)* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Ending balance of AUM** | $**2126** | $2178 | $2142 |  | $2106 | $2008 | **(2)%** | **6%** |
| **Wealth Management client assets** *(c)* | $**339** | $350 | $348 |  | $339 | $327 | **(3)%** | **4%** |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Represents assets managed in the Investment and Wealth Management business segment.* 

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Reflects a change in methodology beginning in the third quarter of 2025 to include assets under advisement.*

*(c)&nbsp;&nbsp;&nbsp;&nbsp;Includes AUM and AUC/A in the Wealth Management line of business.*

*Business segment description*

The Investment and Wealth Management business segment consists of Investment Management and Wealth Management lines of business. See pages 17 and 18 of our 2025 Annual Report for additional information on our Investment and Wealth Management business segment.

Our Investment Management business is a multi-asset portfolio solutions provider offering products and investments for institutional and retail clients globally. This includes a global distribution platform and seven specialized investment firms: BNY Investments Dreyfus, a liquidity solutions provider; BNY Investments Mellon, an index provider; Insight Investment, our fixed income franchise; BNY Investments Newton, an equity and multi-asset manager; Walter Scott, a specialized equity manager; and Brazilian equity manager ARX. BNY also owns a noncontrolling interest in Siguler Guff, a multi-strategy private equity investment firm. Each highly

experienced investment team has its own proprietary investment process and approach.

Wealth Management provides investment management, custody, wealth and estate planning, private banking services, investment servicing and information management. Wealth Management has more than 30 offices in the U.S. and internationally.

*Review of financial results*

AUM of $2.1 trillion as of March 31, 2026, increased 6% compared with March 31, 2025, primarily reflecting higher market values and the favorable impact of the weaker U.S. dollar, partially offset by cumulative net outflows.

Net long-term strategy outflows were $7 billion in the first quarter of 2026, driven by index and equity investments, partially offset by inflows of fixed income and liability-driven investments. Short-term strategy outflows were $10 billion in the first quarter

BNY 17

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of 2026. Market and regulatory trends have resulted in increased demand for lower fee asset management products and for performance-based fees.

Total revenue of $825 million increased 6% compared with the first quarter of 2025. The drivers of total revenue by line of business are indicated below.

Investment Management revenue of $550 million increased 6% compared with the first quarter of 2025, primarily reflecting higher market values and the favorable impact of the weaker U.S. dollar, partially offset by the mix of AUM flows.

Wealth Management revenue of $275 million increased 5% compared with the first quarter of 2025, primarily reflecting higher market values and net interest income, partially offset by changes in product mix.

Revenue generated in the Investment and Wealth Management business segment included 29% from non-U.S. sources in the first quarter of 2026, compared with 28% in the first quarter of 2025.

Noninterest expense of $726 million increased 2% compared with the first quarter of 2025, primarily reflecting the unfavorable impact of the weaker U.S. dollar, employee merit increases and higher investments, partially offset by efficiency savings.

*Other segment*

---

| | | |
|:---|:---|:---|
| *(in millions)* | **1Q26** | 1Q25 |
| Fee revenue | $**(23)** | $(28) |
| Investment and other revenue | **50** | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fee and other revenue | **27** | 34 |
| Net interest income (expense) | **(11)** | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | **16** | 25 |
| Provision for credit losses | **1** | 4 |
| Noninterest expense | **89** | 88 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) before income taxes | $**(74)** | $(67) |
| Average loans | $**1639** | $1800 |

---

See page 19 of our 2025 Annual Report for additional information on the Other segment.

*Review of financial results* 

Total revenue includes corporate treasury and other investment activity, including hedging activity, which has an offsetting impact between fee and other revenue and net interest expense.

Total revenue decreased $9 million compared with the first quarter of 2025, primarily driven by net investment securities losses, partially offset by higher renewable energy investment gains.

Noninterest expense increased $1 million compared with the first quarter of 2025.

**Critical accounting estimates**

Our significant accounting policies are described in Note 1 of the Notes to Consolidated Financial Statements in our 2025 Annual Report. Our critical accounting estimates are those related to the allowance for credit losses, goodwill and other intangibles and litigation and regulatory contingencies, as referenced below.

---

| | |
|:---|:---|
| **Critical accounting estimates** | **Reference** |
| **Allowance for credit losses** | 2025 Annual Report, pages 22-23, and "Allowance for credit losses." |
| **Goodwill and other intangibles** | 2025 Annual Report, pages 23-24. Also see below. |
| **Litigation and regulatory contingencies** | "Legal proceedings" in Note 15 of the Notes to Consolidated Financial Statements. |

---

*Goodwill and other intangibles*

BNY's business segments include seven reporting units for which goodwill impairment testing is performed on an annual basis. An interim goodwill impairment test is performed when events or circumstances occur that may indicate that it is more likely than not that the fair value of any reporting unit may be less than its carrying value.

In the first quarter of 2026, due to the results of the fourth quarter 2025 interim goodwill impairment test and macroeconomic conditions, we performed an interim goodwill impairment test of the Investment Management reporting unit, which had $6.3 billion of allocated goodwill. The fair value of the Investment Management reporting unit exceeded its carrying

18 BNY

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value by approximately 6%. We determined the fair value of the Investment Management reporting unit using an income approach based on management's projections as of March 31, 2026. The discount rate applied to these cash flows was 10%.

As of March 31, 2026, if the discount rate applied to the estimated cash flows was increased or decreased by 25 basis points, the fair value of the Investment Management reporting unit would decrease or increase by approximately 5%, respectively. Similarly, if the long-term growth rate was increased or decreased by 10 basis points, the fair value of the Investment Management reporting unit would increase or decrease by approximately 1%, respectively.

Determining the fair value of a reporting unit is subject to uncertainty, as it is reliant on estimates of cash flows that extend far into the future, and, by their nature, are difficult to estimate over such an extended time frame. In the future, changes in the assumptions or the discount rate could produce a material non-cash goodwill impairment.

**Consolidated balance sheet review**

One of our key risk management objectives is to maintain a balance sheet that remains strong throughout market cycles to meet the expectations of our major stakeholders, including our shareholders, clients, creditors and regulators.

We also seek to undertake overall liquidity risk, including intraday liquidity risk, that stays within our risk appetite. The objective of our balance sheet management strategy is to maintain a balance sheet that is characterized by strong liquidity and asset quality, ready access to external funding sources at competitive rates and a strong capital structure that supports our risk-taking activities and is adequate to absorb potential losses. In managing the balance sheet, appropriate consideration is given to balancing the competing needs of maintaining sufficient levels of liquidity and complying with applicable regulations and supervisory expectations while optimizing profitability.

At March 31, 2026, total assets were $562 billion, compared with $472 billion at Dec. 31, 2025. The increase in total assets was primarily driven by higher interest-bearing deposits with the Federal Reserve and other central banks and loans which were

temporarily elevated reflecting a single-day increase as a result of delayed processing of certain payments. Deposits totaled $417 billion at March 31, 2026, compared with $332 billion at Dec. 31, 2025. The increase primarily reflects higher noninterest-bearing deposits. Total interest-bearing deposits as a percentage of total interest-earning assets were 59% at March 31, 2026 and 66% at Dec. 31, 2025.

At March 31, 2026, available funds totaled $234 billion and included cash and due from banks, interest-bearing deposits with the Federal Reserve and other central banks, interest-bearing deposits with banks and federal funds sold and securities purchased under resale agreements. This compares with available funds of $176 billion at Dec. 31, 2025. Total available funds as a percentage of total assets were 42% at March 31, 2026 and 37% at Dec. 31, 2025. For additional information on our available funds, see "Liquidity and dividends."

Investment securities were $156 billion, or 28% of total assets, at March 31, 2026, compared with $150 billion, or 32% of total assets, at Dec. 31, 2025. The increase primarily reflects higher agency residential mortgage-backed securities ("RMBS") and U.S. Treasury securities, partially offset by unrealized pre-tax losses in the first three months of 2026 and lower non-U.S. government securities. For additional information on our investment securities portfolio, see "Investment securities" and Note 2 of the Notes to Consolidated Financial Statements.

Loans were $101 billion, or 18% of total assets, at March 31, 2026, compared with $81 billion, or 17% of total assets, at Dec. 31, 2025. The increase was primarily driven by higher loans in the financial institutions portfolio, overdrafts and margin loans. For additional information on our loan portfolio, see "Loans" and Note 3 of the Notes to Consolidated Financial Statements.

Long-term debt totaled $33 billion at March 31, 2026 and $32 billion at Dec. 31, 2025. Issuances were partially offset by maturities and a decrease in the fair value of hedged long-term debt. For additional information on long-term debt, see "Liquidity and dividends."

The Bank of New York Mellon Corporation total shareholders' equity totaled $45 billion at March 31, 2026 and $44 billion at Dec. 31, 2025. For additional information, see "Capital."

BNY 19

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*Country risk exposure*

The following table presents BNY's top 10 exposures by country (excluding the U.S.) as of March 31, 2026, as well as certain countries with higher risk profiles. The exposure is presented on an internal risk management basis and has not been reduced by the allowance for credit losses. We monitor our exposure to these and other countries as part of our internal country risk management process.

The country risk exposure below reflects the Company's risk to an immediate default of the counterparty or obligor based on the country of residence of the entity which incurs the liability. If there is credit risk mitigation, the country of residence of the entity providing the risk mitigation is the country of risk. The country of risk for investment securities is generally based on the domicile of the issuer of the security. The country risk exposure below does not reflect exposure that might arise from certain commitments and contingent liabilities set forth in Note 15 of the Notes to Consolidated Financial Statements.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Country risk exposure at March 31, 2026** | Interest-bearing deposits | Interest-bearing deposits |  |  |  |  | Total exposure |  |
| *(in billions)* | Central <br>banks | Banks |  | Lending *(a)* | Investment securities *(b)* | Other *(c)* | Total exposure |  |
| **Top 10 country exposure:** |  |  |  |  |  |  |  |  |
| United Kingdom ("UK") | $12.1 | $0.6 |  | $2.1 | $7 | $2.6 | $24.4 |  |
| Germany | 16.7 | 0.4 |  | 0.7 | 3.7 | 0.2 | 21.7 |  |
| Japan | 6.3 | 0.6 |  | 0.1 | 0.5 | 0.3 | 7.8 |  |
| Canada |  | 1.1 |  | 0.3 | 4.1 | 2.0 | 7.5 |  |
| Netherlands | 1.3 |  |  | 0.5 | 3.2 | 0.3 | 5.3 |  |
| Luxembourg | 0.2 | 0.5 |  | 1.5 |  | 2.9 | 5.1 |  |
| Belgium | 1.4 | 1.9 |  | 0.1 | 1.3 | 0.1 | 4.8 |  |
| South Korea | 0.1 | 0.3 |  | 2.4 | 0.2 | 1.2 | 4.2 |  |
| Ireland | 0.1 | 0.2 |  | 0.9 |  | 2.6 | 3.8 |  |
| Australia |  | 1.4 |  | 0.4 | 1.0 | 0.6 | 3.4 |  |
| &nbsp;&nbsp;&nbsp;Total Top 10 country exposure | $**38.2** | $**7.0** |  | $**9.0** | $**21.0** | $**12.8** | $**88.0** | *(d)* |
| **Select country exposure:** |  |  |  |  |  |  |  |  |
| Brazil | $— | $— |  | $1.1 | $0.1 | $0.4 | $1.6 |  |
| Russia |  | 1.4 | *(e)* |  |  |  | 1.4 |  |

---

*(a)*&nbsp;&nbsp;&nbsp;&nbsp;*Lending includes loans, acceptances, issued letters of credit, net of participations, and lending-related commitments.* 

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Investment securities include both the available-for-sale and held-to-maturity portfolios.*

*(c)*&nbsp;&nbsp;&nbsp;&nbsp;*Other exposure includes over-the-counter ("OTC") derivative and securities financing transactions, net of collateral.*

*(d)*&nbsp;&nbsp;&nbsp;&nbsp;*The top 10 country exposure comprises approximately 65% of our total non-U.S. exposure.*

*(e)&nbsp;&nbsp;&nbsp;&nbsp;Represents cash balances with exposure to Russia.*

We have exposure to certain countries with higher risk profiles. The country risk exposure to Brazil is primarily short-term trade finance loans extended to large financial institutions. We also have operations in Brazil providing investment services and investment management services.

The war in Ukraine has increased our focus on Russia. The country risk exposure to Russia consists of cash balances related to our Securities Services businesses and may increase in the future to the extent cash is allocated for the benefit of our clients

that is subject to distribution restrictions. BNY has ceased new banking business in Russia and suspended investment management purchases of Russian securities.

Russian securities included in our AUC/A and AUM at March 31, 2026 continue to be insignificant as a percentage of the total AUC/A and AUM, respectively. We will continue to work with multinational clients that depend on our custody and recordkeeping services to manage their exposures.

20 BNY

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*Investment securities*

In the discussion of our investment securities portfolio, we have included certain credit ratings information because the information can indicate the degree of credit risk to which we are exposed. Significant changes in ratings classifications could indicate increased credit risk for us and could be accompanied by an increase in the allowance for credit losses and/or a reduction in the fair value of our investment securities portfolio.

The following table shows the distribution of our total investment securities portfolio.

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| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Investment securities portfolio** | Dec. 31, 2025 | 1Q26<br>change in<br>unrealized<br>gain (loss) | **March 31, 2026** | **March 31, 2026** | Fair value as a % of amortized<br>cost *(a)* | Unrealized<br>gain (loss) |  | % Floating<br>rate *(b)* | Ratings *(c)* | Ratings *(c)* | Ratings *(c)* | Ratings *(c)* | Ratings *(c)* |
| **Investment securities portfolio** | Dec. 31, 2025 | 1Q26<br>change in<br>unrealized<br>gain (loss) | **March 31, 2026** | **March 31, 2026** | Fair value as a % of amortized<br>cost *(a)* | Unrealized<br>gain (loss) |  | % Floating<br>rate *(b)* |  |  | BBB+/<br>BBB- | BB+<br>and<br>lower |  |
| *(dollars in millions)* | Fair<br>value | 1Q26<br>change in<br>unrealized<br>gain (loss) | Amortized<br>cost *(a)* | Fair<br>value | Fair value as a % of amortized<br>cost *(a)* | Unrealized<br>gain (loss) |  | % Floating<br>rate *(b)* | AAA/<br>AA- | A+/<br>A- | BBB+/<br>BBB- | BB+<br>and<br>lower | Not<br>rated |
| Agency RMBS | $45383 | $(232) | $**51648** | $**49103** | 95% | $(2545) |  | 23% | 100% | —% | —% | —% | —% |
| U.S. Treasury | 33386 | (142) | **35990** | **35783** | 99 | (207) |  | 38 | 100 |  |  |  |  |
| Non-U.S. government *(d)* | 34224 | (237) | **33695** | **33435** | 99 | (260) |  | 24 | 84 | 16 |  |  |  |
| Agency commercial mortgage-backed securities ("MBS") | 9600 | 5 | **9603** | **9380** | 98 | (223) |  | 45 | 100 |  |  |  |  |
| Foreign covered bonds *(e)* | 8806 | (36) | **8761** | **8707** | 99 | (54) |  | 38 | 100 |  |  |  |  |
| Collateralized loan obligations | 7958 | (12) | **8349** | **8337** | 100 | (12) |  | 100 | 100 |  |  |  |  |
| U.S. government agencies | 4029 | (7) | **4176** | **4003** | 96 | (173) |  | 27 | 100 |  |  |  |  |
| Non-agency commercial MBS | 2196 | (2) | **2180** | **2094** | 96 | (86) |  | 45 | 100 |  |  |  |  |
| Non-agency RMBS | 1515 | (2) | **1645** | **1529** | 93 | (116) |  | 48 | 100 |  |  |  |  |
| Other asset-backed securities | 376 | 1 | **367** | **347** | 95 | (20) |  | 21 | 100 |  |  |  |  |
| Other debt securities | 10 | 1 | **11** | **11** | 100 |  |  |  |  |  |  |  | 100 |
| &nbsp;&nbsp;&nbsp;Total investment securities | $147483 | $(663) | $**156425** | $**152729** | 98% | $(3696) | *(f)* | 34% | 96% | 4% | —% | —% | —% |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Amortized cost includes the impact of hedged item basis adjustments, which was a net decrease of $1,099 million, and is net of the allowance for credit losses.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Includes the impact of hedges.*

*(c)&nbsp;&nbsp;&nbsp;&nbsp;Represents ratings by Standard & Poor's ("S&P") or the equivalent.*

*(d)&nbsp;&nbsp;&nbsp;&nbsp;Includes supranational securities. Primarily consists of exposure to the UK, Germany, France, the Netherlands and Canada.*

*(e)&nbsp;&nbsp;&nbsp;&nbsp;Primarily consists of exposure to Canada, the UK, Australia, Germany, the Netherlands and Singapore.* 

*(f)&nbsp;&nbsp;&nbsp;&nbsp;At March 31, 2026, includes a pre-tax net unrealized loss of $810 million related to available-for-sale securities, net of hedges, and $2,886 million related to held-to-maturity securities. The after-tax unrealized loss, net of hedges, related to available-for-sale securities was $610 million and the after-tax unrealized loss related to held-to-maturity securities was $2,201 million.*

The fair value of our investment securities portfolio was $152.7 billion at March 31, 2026, compared with $147.5 billion at Dec. 31, 2025. The increase primarily reflects higher agency RMBS and U.S. Treasury securities, partially offset by unrealized pre-tax losses in the first three months of 2026 and lower non-U.S. government securities.

At March 31, 2026, the investment securities portfolio had a net unrealized loss, including the impact of related hedges, of $3.7 billion, compared with $3.0 billion at Dec. 31, 2025. The increase in the unrealized loss, including the impact of related hedges, primarily reflects the impact of higher interest rates.

The fair value of the available-for-sale securities totaled $106.8 billion at March 31, 2026, or 70% of the investment securities portfolio. The fair value of the held-to-maturity securities totaled $45.9 billion at

March 31, 2026, or 30% of the investment securities portfolio.

The unrealized loss (after-tax) on our available-for-sale securities portfolio, net of hedges, included in accumulated other comprehensive income was $610 million at March 31, 2026, compared with $241 million at Dec. 31, 2025. The increase in the net unrealized loss, including the impact of hedges, primarily reflects the impact of higher interest rates.

At March 31, 2026, 96% of the investment securities in our portfolio were rated AAA/AA-, unchanged compared with Dec. 31, 2025.

See Note 2 of the Notes to Consolidated Financial Statements for the pre-tax net investment securities gains (losses) by security type. See Note 12 of the Notes to Consolidated Financial Statements for investment securities by level in the fair value hierarchy.

BNY 21

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The following table presents the net premium (discount) and net amortization (accretion) related to the investment securities portfolio.

---

| | | |
|:---|:---|:---|
| **Net premium (discount) and net amortization (accretion) related to the investment securities portfolio** *(a)* | | |
| *(in millions)* |<br>**1Q26** |<br>1Q25 |
| Net purchase premium (discount) that is amortizable (accretable) | $**(2834)** | $(1285) |
| Net amortization (accretion) *(b)* | $**(78)** | $(24) |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Amortization of purchase premium decreases net interest income while accretion of discount increases net interest income and is recorded on a level yield basis.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Including the impact of the accretion of discontinued hedges, net (accretion) was $(125) million in the first quarter of 2026 and $(82) million in the first quarter of 2025.* 

*Loans*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Total exposure – consolidated** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 |
| *(in billions)* | Loans | Unfunded<br>commitments | Total<br>exposure | Loans | Unfunded<br>commitments | Total<br>exposure |
| Financial institutions *(a)* | $**25.5** | $**28.4** | $**53.9** | $13.3 | $30.3 | $43.6 |
| Commercial | **1.4** | **13.2** | **14.6** | 1.7 | 12.9 | 14.6 |
| Wealth management loans | **9.6** | **0.7** | **10.3** | 9.5 | 0.8 | 10.3 |
| Wealth management mortgages | **8.8** | **0.2** | **9.0** | 8.6 | 0.2 | 8.8 |
| Commercial real estate | **6.8** | **3.3** | **10.1** | 6.7 | 3.2 | 9.9 |
| Other residential mortgages | **1.4** | **—** | **1.4** | 1.8 |  | 1.8 |
| Overdrafts *(a)* | **8.6** | **—** | **8.6** | 2.8 |  | 2.8 |
| Capital call financing | **5.5** | **3.3** | **8.8** | 5.3 | 3.5 | 8.8 |
| Other | **4.6** | **—** | **4.6** | 4.6 |  | 4.6 |
| Margin loans | **29.1** | **0.3** | **29.4** | 26.3 | 0.3 | 26.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $**101.3** | $**49.4** | $**150.7** | $80.6 | $51.2 | $131.8 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;The balances at March 31, 2026 were temporarily elevated reflecting a single-day increase in overnight loans as a result of delayed processing of certain payments.*

At March 31, 2026, our total lending-related exposure was $150.7 billion, an increase of 14%, compared with Dec. 31, 2025, primarily reflecting higher exposure in the financial institutions portfolio, overdrafts and margin loans. Our financial institutions and commercial portfolios comprise our largest concentrated risk. These portfolios comprised 45% of our total exposure at March 31, 2026 and 44% at Dec. 31, 2025. Additionally, most of our overdrafts relate to financial institutions.

*Financial institutions*

The financial institutions portfolio is shown below.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Financial institutions**<br>**portfolio exposure**<br>*(dollars in billions)* | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 |
| &nbsp;&nbsp;**Financial institutions**<br>**portfolio exposure**<br>*(dollars in billions)* | <br>Loans | Unfunded<br>commitments | Total<br>exposure | % Inv.<br>grade | % due<br><1 yr. | <br>Loans | Unfunded<br>commitments | Total<br>exposure |
| Securities industry | $**14.5** | $**13.0** | $**27.5** | **99%** | **99%** | $3.5 | $15.1 | $18.6 |
| Asset managers | **2.2** | **8.0** | **10.2** | **98** | **69** | 1.8 | 7.6 | 9.4 |
| Banks | **8.1** | **1.6** | **9.7** | **86** | **92** | 7.7 | 1.6 | 9.3 |
| Insurance | **—** | **4.2** | **4.2** | **100** | **8** |  | 4.5 | 4.5 |
| Government | **—** | **0.6** | **0.6** | **100** | **25** |  | 0.6 | 0.6 |
| Other | **0.7** | **1.0** | **1.7** | **100** | **21** | 0.3 | 0.9 | 1.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $**25.5** | $**28.4** | $**53.9** | **97%** | **82%** | $13.3 | $30.3 | $43.6 |

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22 BNY

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The financial institutions portfolio exposure was $53.9 billion at March 31, 2026, an increase of 24% compared with Dec. 31, 2025, primarily reflecting higher exposure in the securities industry portfolio.

Financial institution exposures are high-quality, with 97% of the exposures meeting the investment grade equivalent criteria of our internal credit rating classification at March 31, 2026. Each customer is assigned an internal credit rating, which is mapped to an equivalent external rating agency grade based upon a number of dimensions, which are continually evaluated and may change over time. For ratings of non-U.S. counterparties, our internal credit rating is generally capped at a rating equivalent to the sovereign rating of the country where the counterparty resides, regardless of the internal credit rating assigned to the counterparty or the underlying collateral.

The exposure to financial institutions is generally short term, with 82% of the exposures at March 31, 2026 expiring within one year. At March 31, 2026, 40% of the exposure to financial institutions had an expiration within 90 days, compared with 19% at Dec. 31, 2025.

In addition, 70% of the financial institutions exposure was secured at March 31, 2026. For example,

securities industry clients and asset managers often borrow against marketable securities held in custody.

At March 31, 2026, the secured intraday credit provided to dealers in connection with their tri-party repo activity totaled $9.3 billion and was included in the securities industry portfolio. Dealers secure the outstanding intraday credit with high-quality liquid collateral having a market value in excess of the amount of the outstanding credit. Secured intraday credit facilities represent 17% of the exposure in the financial institutions portfolio and are reviewed and reapproved annually.

Our banks portfolio exposure primarily relates to our global trade finance. These exposures are short-term in nature, with 92% due in less than one year. The investment grade percentage of our banks exposure was 86% at March 31, 2026, compared with 83% at Dec. 31, 2025. Our non-investment grade exposures are primarily trade finance loans in Brazil.

The asset managers portfolio exposure is high quality, with 98% of the exposures meeting our investment grade equivalent ratings criteria as of March 31, 2026. These exposures are generally short-term liquidity facilities, with the majority to regulated mutual funds.

*Commercial*

The commercial portfolio is presented below.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Commercial portfolio exposure** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 |
| *<br>(dollars in billions)* | <br>Loans | Unfunded<br>commitments | Total<br>exposure | % Inv.<br>grade | % due<br><1 yr. | <br>Loans | Unfunded<br>commitments | Total<br>exposure |
| Manufacturing | $**0.5** | $**4.3** | $**4.8** | **100%** | **28%** | $0.7 | $4.0 | $4.7 |
| Services and other | **0.8** | **3.7** | **4.5** | **97** | **28** | 0.8 | 4.0 | 4.8 |
| Energy and utilities | **0.1** | **4.4** | **4.5** | **93** | **11** | 0.2 | 4.1 | 4.3 |
| Media and telecom | **—** | **0.8** | **0.8** | **89** | **27** |  | 0.8 | 0.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $**1.4** | $**13.2** | $**14.6** | **96%** | **23%** | $1.7 | $12.9 | $14.6 |

---

The commercial portfolio exposure was $14.6 billion at March 31, 2026, unchanged compared with Dec. 31, 2025, reflecting higher exposure in the energy and utilities and manufacturing portfolios, offset by lower exposure in the services and other portfolio.

Our credit strategy is to focus on investment grade clients that are active users of our non-credit services.

The following table summarizes the percentage of the financial institutions and commercial portfolio exposures that are investment grade.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Percentage of the portfolios that are investment grade** | **Percentage of the portfolios that are investment grade** | **Percentage of the portfolios that are investment grade** | **Percentage of the portfolios that are investment grade** | **Percentage of the portfolios that are investment grade** | **Percentage of the portfolios that are investment grade** |
|  | Quarter ended | Quarter ended | Quarter ended | Quarter ended | Quarter ended |
|  | **March 31, 2026** | Dec. 31, 2025 | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 |
| Financial institutions | **97%** | 96% | 96% | 96% | 96% |
| Commercial | **96%** | 97% | 96% | 95% | 96% |

---

BNY 23

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*Wealth management loans* 

Our wealth management loan exposure was $10.3 billion at March 31, 2026, unchanged compared with Dec. 31, 2025. Wealth management loans primarily consist of loans to high-net-worth individuals, a majority of which are secured by the customers' investment management accounts or custody accounts.

*Wealth management mortgages*

Our wealth management mortgage exposure was $9.0 billion at March 31, 2026, compared with $8.8 billion

at Dec. 31, 2025. Wealth management mortgages primarily consist of loans to high-net-worth individuals, which are secured by residential property. Wealth management mortgages are primarily interest-only, adjustable-rate mortgages with a weighted-average loan-to-value ratio of 61% at origination. Less than 1% of the mortgages were past due at March 31, 2026.

At March 31, 2026, the wealth management mortgage portfolio consisted of the following geographic concentrations: California – 20%; New York – 14%; Florida – 11%; Massachusetts – 8%; and other – 47%.

*Commercial real estate*

The composition of the commercial real estate portfolio by asset class, including percentage secured, is presented below.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Composition of commercial real estate portfolio by asset class** | **March 31, 2026** | **March 31, 2026** | Dec. 31, 2025 | Dec. 31, 2025 |
|  | Total<br>exposure | Percentage<br>secured *(a)* | Total<br>exposure | Percentage<br>secured *(a)* |
| *(in billions)* | Total<br>exposure | Percentage<br>secured *(a)* | Total<br>exposure | Percentage<br>secured *(a)* |
| Residential | $**4.6** | **89%** | $4.2 | 87% |
| Office | **2.2** | **72** | 2.4 | 74 |
| Retail | **0.8** | **53** | 0.8 | 55 |
| Mixed use | **0.8** | **28** | 0.8 | 28 |
| Healthcare | **0.7** | **40** | 0.6 | 35 |
| Hotels | **0.6** | **38** | 0.6 | 38 |
| Other | **0.4** | **62** | 0.5 | 63 |
| &nbsp;&nbsp;&nbsp;Total commercial real estate | $**10.1** | **70%** | $9.9 | 69% |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Represents the percentage of exposure secured by real estate in each asset class.*

Our commercial real estate exposure totaled $10.1 billion at March 31, 2026 and $9.9 billion at Dec. 31, 2025. Our income-producing commercial real estate facilities are focused on experienced owners and are structured with moderate leverage based on existing cash flows. Our commercial real estate lending activities also include construction and renovation facilities. Our client base consists of experienced developers and long-term holders of real estate assets. Loans are approved on the basis of existing or projected cash flows and supported by appraisals and knowledge of local market conditions. Development loans are structured with moderate leverage and, in many instances, involve some level of recourse to the developer.

At March 31, 2026, the unsecured portfolio consisted of real estate investment trusts ("REITs") and real estate operating companies, which are both primarily investment grade.

At March 31, 2026, our commercial real estate portfolio consisted of the following concentrations: New York metro – 34%; REITs and real estate operating companies – 30%; and other – 36%.

*Other residential mortgages*

The other residential mortgages portfolio primarily consists of 1-4 family residential mortgage loans and totaled $1.4 billion at March 31, 2026, compared with $1.8 billion at Dec. 31, 2025.

24 BNY

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*Overdrafts*

Overdrafts primarily relate to custody and securities clearance clients and are generally repaid within two business days.

*Capital call financing*

Capital call financing includes loans to private equity funds that are secured by the fund investors' capital commitments and the funds' rights to call capital.

*Other loans*

Other loans primarily include loans to consumers that are fully collateralized with equities, mutual funds and fixed-income securities.

*Margin loans*

Margin loan exposure of $29.4 billion at March 31, 2026, compared with $26.6 billion at Dec. 31, 2025 was collateralized with marketable securities. Borrowers are required to maintain a daily collateral margin in excess of 100% of the value of the loan. Margin loans included $14 billion at March 31, 2026 and $12 billion at Dec. 31, 2025, related to a term loan program that offers fully collateralized loans to broker-dealers.

*Allowance for credit losses*

Our credit strategy is to focus on investment grade clients who are active users of our non-credit services. Our primary exposure to the credit risk of a customer consists of funded loans, unfunded contractual commitments to lend, standby letters of credit and overdrafts associated with our custody and securities clearance businesses.

The following table presents the changes in our allowance for credit losses.

---

| | | |
|:---|:---|:---|
| **Allowance for credit losses activity** | **March 31, 2026** | Dec. 31, 2025 |
| *(dollars in millions)* | **March 31, 2026** | Dec. 31, 2025 |
| Beginning balance of allowance for credit losses | $**344** | $368 |
| Provision for credit losses | **(7)** | (26) |
| Net (charge-offs) recoveries: |  |  |
| &nbsp;&nbsp;&nbsp;Loans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate | **11** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other residential mortgages | **—** | 1 |
| &nbsp;&nbsp;&nbsp;Other financial instruments | **(1)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (charge-offs) recoveries | **10** | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ending balance of allowance for credit losses | $**347** | $344 |
| Allowance for loan losses | $**237** | $245 |
| Allowance for lending-related commitments | **85** | 74 |
| Allowance for other financial instruments *(a)* | **25** | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total allowance for credit losses | $**347** | $344 |
| Total loans, at period end | $**101261** | $80615 |
| Allowance for loan losses as a percentage of total loans | **0.23%** | 0.30% |
| Allowance for loan losses and lending-related commitments as a percentage of total loans | **0.32%** | 0.40% |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Includes allowance for credit losses on federal funds sold and securities purchased under resale agreements, available-for-sale securities, held-to-maturity securities, accounts receivable, cash and due from banks and interest-bearing deposits with banks.*

The provision for credit losses was a benefit of $7 million in the first quarter of 2026, primarily driven by improvements in commercial real estate exposure, partially offset by changes in the macroeconomic and other factors.

The allowance for loan losses and the allowance for lending-related commitments represent management's estimate of lifetime expected losses in our credit portfolio. This evaluation process is subject to numerous estimates and judgments. To the extent actual results differ from forecasts or management's judgment, the allowance for credit losses may be greater or less than future charge-offs.

Based on an evaluation of the allowance for credit losses as discussed in "Critical accounting estimates" in our 2025 Annual Report, we have allocated our

BNY 25

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allowance for loans and lending-related commitments as presented below.

---

| | | |
|:---|:---|:---|
| **Allocation of allowance for loan losses and lending-related commitments** *(a)* | **Allocation of allowance for loan losses and lending-related commitments** *(a)* | |
|  | **March 31, 2026** | Dec. 31, 2025 |
| *(dollars in millions)* | $% | $% |
| Commercial real estate | **78%** | 82% |
| Financial institutions | **10** | 8 |
| Commercial | **4** | 3 |
| Capital call financing | **3** | 2 |
| Wealth management mortgages | **2** | 2 |
| Wealth management loans | **2** | 2 |
| Other residential mortgages | **1** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | **100%** | 100% |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;The allowance allocated to margin loans, overdrafts and other loans was insignificant at March 31, 2026 and Dec. 31, 2025. We have rarely suffered a loss on these types of loans.*

The allocation of the allowance for credit losses is inherently judgmental, and the entire allowance for credit losses is available to absorb credit losses regardless of the nature of the losses.

Our allowance for credit losses is sensitive to a number of inputs, most notably the macroeconomic forecast assumptions that are incorporated into our estimate of credit losses through the expected life of the loan portfolio, as well as credit ratings assigned to each borrower. As the macroeconomic environment and related forecasts change, the allowance for credit losses may change materially. The following sensitivity analyses do not represent management's expectations of the deterioration of our portfolios or the economic environment, but are provided as hypothetical scenarios to assess the sensitivity of the allowance for credit losses to changes in key inputs. If commercial real estate property values were increased 10% and all other credits were rated one grade better, the quantitative allowance would have decreased by $43 million, and if commercial real estate property values were decreased 10% and all other credits were rated one grade worse, the quantitative allowance would have increased by $74 million. Our multi-scenario-based macroeconomic forecast used in determining the March 31, 2026 allowance for credit losses consisted of three scenarios. The baseline scenario reflects positive, but declining gross domestic product ("GDP") growth through 2026 before moderating, and largely stable unemployment and commercial real estate prices

through the end of 2026. The upside scenario reflects higher GDP growth through mid-2026 before declining for the remainder of 2026, declining unemployment through 2026 and slightly increasing commercial real estate prices through 2026 compared with the baseline. The downside scenario contemplates negative GDP growth and rapidly increasing unemployment through 2026, and sharply lower commercial real estate prices through 2026 compared with the baseline. At March 31, 2026, we placed the largest and equal weighting on our baseline and downside scenarios, with the remaining weighting placed on the upside scenario. From a sensitivity perspective, at March 31, 2026, if we had applied 100% weighting to the downside scenario, the allowance for credit losses would have been approximately $101 million higher.

*Nonperforming assets*

The table below presents our nonperforming assets.

---

| | | |
|:---|:---|:---|
| **Nonperforming assets** | **March 31, 2026** | Dec. 31, 2025 |
| *(dollars in millions)* | **March 31, 2026** | Dec. 31, 2025 |
| Nonperforming loans: |  |  |
| &nbsp;&nbsp;&nbsp;Commercial real estate | $**32** | $106 |
| &nbsp;&nbsp;&nbsp;Other residential mortgages | **18** | 17 |
| &nbsp;&nbsp;&nbsp;Wealth management mortgages | **16** | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming loans | **66** | 140 |
| Other assets owned | **3** | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming assets | $**69** | $143 |
| Nonperforming assets ratio | **0.07%** | 0.18% |
| Allowance for loan losses/nonperforming loans | **359.1** | 175.0 |
| Allowance for loan losses/nonperforming assets | **343.5** | 171.3 |
| Allowance for loan losses and lending-related commitments/nonperforming loans | **487.9** | 227.9 |
| Allowance for loan losses and lending-related commitments/nonperforming assets | **466.7** | 223.1 |

---

*Deposits*

Total deposits were $417.1 billion at March 31, 2026, an increase of 26%, compared with $331.9 billion at Dec. 31, 2025. Total deposits increased reflecting higher noninterest-bearing deposits, as well as the temporary single-day increase as a result of delayed processing of certain payments.

Noninterest-bearing deposits were $127.7 billion at March 31, 2026, compared with $60.0 billion at Dec. 31, 2025. Interest-bearing deposits were primarily

26 BNY

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demand deposits and totaled $289.4 billion at March 31, 2026, compared with $271.9 billion at Dec. 31, 2025.

*Short-term borrowings*

We fund our operations primarily through deposits and, to a lesser extent, other short-term borrowings and long-term debt. Short-term borrowings consist of federal funds purchased and securities sold under repurchase agreements, payables to customers and broker-dealers, commercial paper and other borrowed funds. Certain short-term borrowings, for example, securities sold under repurchase agreements, require the delivery of securities as collateral.

Federal funds purchased and securities sold under repurchase agreements include repurchase agreement activity with the Fixed Income Clearing Corporation ("FICC"), where we record interest expense on a gross basis, but the ending and average balances reflect the impact of offsetting under enforceable netting agreements. This activity primarily relates to government securities collateralized resale and repurchase agreements executed with clients that are novated to, and settle with, the FICC.

Payables to customers and broker-dealers represent funds awaiting reinvestment and short sale proceeds payable on demand. Payables to customers and broker-dealers are driven by customer trading activity and market volatility.

The Bank of New York Mellon issues commercial paper that matures within 397 days from the date of issue and is not redeemable prior to maturity or subject to voluntary prepayment.

Other borrowed funds primarily include overdrafts of sub-custodian account balances in our Securities Services businesses, borrowings under lines of credit by our Pershing subsidiaries and borrowings from the

Federal Home Loan Bank. Overdrafts typically relate to timing differences for settlements.

**Liquidity and dividends**

BNY defines liquidity as the ability of the Parent and its subsidiaries to access funding or convert assets to cash quickly and efficiently, or to roll over or issue

new debt, especially during periods of market stress, at a reasonable cost, and in order to meet its short-term (up to one year) obligations. Funding liquidity risk is the risk that BNY cannot meet its cash and collateral obligations at a reasonable cost for both expected and unexpected cash flow and collateral needs without adversely affecting daily operations or our financial condition. Funding liquidity risk can arise from funding mismatches, market constraints from the inability to convert assets into cash, the inability to hold or raise cash, low overnight deposits, deposit run-off or contingent liquidity events.

Changes in economic conditions or exposure to credit, market, operational, legal and reputational risks also can affect BNY's liquidity risk profile and are considered in our liquidity risk framework. For additional information, see "Risk Management – Liquidity Risk" in our 2025 Annual Report.

The Parent's policy is to have access to sufficient unencumbered cash and cash equivalents at each quarter-end to cover maturities and other forecasted debt redemptions, net interest payments and net tax payments for the following 18-month period, and to provide sufficient collateral to satisfy transactions subject to Section 23A of the Federal Reserve Act.

We monitor and control liquidity exposures and funding needs within and across significant legal entities, branches, currencies and business lines, taking into account, among other factors, any applicable restrictions on the transfer of liquidity among entities.

BNY also manages potential intraday liquidity risks. We monitor and manage intraday liquidity against existing and expected intraday liquid resources (such as cash balances, remaining intraday credit capacity, intraday contingency funding and available collateral) to enable BNY to meet its intraday obligations under normal and reasonably severe stressed conditions.

We define available funds for internal liquidity management purposes as cash and due from banks, interest-bearing deposits with the Federal Reserve and other central banks, interest-bearing deposits with banks and federal funds sold and securities purchased under resale agreements.

BNY 27

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The following table presents our total available funds at period end and on an average basis.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Available funds** | **March 31, 2026** | Dec. 31, 2025 | Average | Average |
| *(dollars in millions)* | **March 31, 2026** | Dec. 31, 2025 | **1Q26** | 1Q25 |
| Cash and due from banks | $**6390** | $5111 | $**5826** | $4722 |
| Interest-bearing deposits with the Federal Reserve and other central banks | **170202** | 116009 | **97886** | 86038 |
| Interest-bearing deposits with banks | **13544** | 10397 | **12049** | 10083 |
| Federal funds sold and securities purchased under resale agreements | **43660** | 44892 | **42848** | 41166 |
| &nbsp;&nbsp;&nbsp;Total available funds | $**233796** | $176409 | $**158609** | $142009 |
| &nbsp;&nbsp;&nbsp;Total available funds as a percentage of total assets | **42%** | 37% | **34%** | 34% |

---

Total available funds were $233.8 billion at March 31, 2026, compared with $176.4 billion at Dec. 31, 2025. The increase was primarily due to higher interest-bearing deposits with the Federal Reserve and other central banks.

Average non-core sources of funds, such as federal funds purchased and securities sold under repurchase agreements, trading liabilities, commercial paper and other borrowed funds, were $24.3 billion for the first three months of 2026, compared with $21.2 billion for the first three months of 2025. The increase primarily reflects higher federal funds purchased and securities sold under repurchase agreements and commercial paper.

Average interest-bearing domestic deposits were $161.7 billion for the first three months of 2026, compared with $141.7 billion for the first three months of 2025. Average interest-bearing foreign deposits, primarily from our European-based businesses included in the Securities Services and Market and Wealth Services segments, were $101.8 billion for the first three months of 2026, compared with $92.7 billion for the first three months of 2025. The changes primarily reflect client activity.

Average payables to customers and broker-dealers were $17.6 billion for the first three months of 2026

and $15.1 billion for the first three months of 2025. Payables to customers and broker-dealers are driven by customer trading activity and market volatility.

Average long-term debt was $32.5 billion for the first three months of 2026 and $31.2 billion for the first three months of 2025.

Average noninterest-bearing deposits increased to $54.9 billion for the first three months of 2026 from $48.1 billion for the first three months of 2025, primarily reflecting client activity.

A significant reduction of client activity in our Securities Services and Market and Wealth Services business segments would reduce our access to deposits. See "Asset/liability management" for additional factors that could impact our deposit balances.

*Sources of liquidity*

The Parent's major sources of liquidity are access to the debt and equity markets, dividends from its subsidiaries, and cash on hand and cash otherwise made available in business-as-usual circumstances to the Parent through a committed credit facility with our intermediate holding company ("IHC").

28 BNY

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Our ability to access the capital markets on favorable terms, or at all, is partially dependent on our credit ratings, which are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Credit ratings at March 31, 2026** | Moody's |  | S&P | Fitch |  | Morningstar<br>DBRS |
|  | Moody's |  | S&P | Fitch |  | Morningstar<br>DBRS |
| **Parent:** |  |  |  |  |  |  |
| Long-term senior debt | Aa3 |  | A | AA- |  | AA |
| Subordinated debt | A2 |  | A- | A |  | AA (low) |
| Preferred stock | Baa1 |  | BBB | BBB+ |  | A |
| **Outlook – Parent** | Stable |  | Stable | Stable |  | Stable |
| **The Bank of New York Mellon:** |  |  |  |  |  |  |
| Long-term senior debt | Aa2 |  | AA- | AA |  | AA (high) |
| Subordinated debt | NR |  | A | NR |  | NR |
| Long-term deposits | Aa1 |  | AA- | AA+ |  | AA (high) |
| Short-term deposits | P-1 |  | A-1+ | F1+ |  | R-1 (high) |
| Commercial paper | P-1 |  | A-1+ | F1+ |  | R-1 (high) |
| **BNY Mellon, N.A.:** |  |  |  |  |  |  |
| Long-term senior debt | Aa2 | *(a)* | AA- | AA | *(a)* | AA (high) |
| Long-term deposits | Aa1 |  | AA- | AA+ |  | AA (high) |
| Short-term deposits | P-1 |  | A-1+ | F1+ |  | R-1 (high) |
| **Outlook – Banks** | Stable |  | Stable | Stable |  | Stable |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Represents senior debt issuer default rating.*

*NR – Not rated.*

Long-term debt totaled $32.6 billion at March 31, 2026 and $31.9 billion at Dec. 31, 2025. Issuances totaling $1.6 billion were partially offset by maturities of $700 million and a decrease in the fair value of hedged long-term debt. Long-term debt of $2.0 billion will mature in the remainder of 2026.

In April 2026, the Parent issued $750 million of fixed-to-floating rate callable senior notes maturing in 2032 with an annual fixed rate interest rate of 4.540% from issuance to, but excluding, April 23, 2031, and then an annual interest rate of the compounded secured overnight financing rate ("SOFR") plus 89.5 basis points. The Parent also issued $750 million of fixed-to-floating rate callable senior notes maturing in 2037 with an annual fixed rate interest rate of 5.085% from issuance to, but excluding, April 23, 2036, and then an annual interest rate of the compounded SOFR plus 117.7 basis points.

Also in April 2026, The Bank of New York Mellon redeemed $750 million of fixed-to-floating rate callable senior bank notes due April 20, 2027 with an annual fixed rate interest rate of 4.587% and $500 million of floating rate callable senior bank notes due April 20, 2027 with an annual interest rate of SOFR plus 71 basis points, and the Parent redeemed $1.5 billion of fixed-to-floating rate callable senior notes

due April 26, 2027 with an annual fixed rate interest rate of 4.947%.

In March 2026, the Parent issued Series M Noncumulative Perpetual Preferred Stock. See "Capital" and Note 10 of the Notes to Consolidated Financial Statements for additional information on the Parent's preferred stock.

The Bank of New York Mellon may issue notes and certificates of deposit ("CDs"). At both March 31, 2026 and Dec. 31, 2025, $2.5 billion of notes were outstanding. At March 31, 2026 and Dec. 31, 2025, $4.1 billion and $4.9 billion, respectively, of CDs were outstanding.

The Bank of New York Mellon also issues commercial paper that matures within 397 days from the date of issue and is not redeemable prior to maturity or subject to voluntary prepayment. There was $1.0 billion and $2.0 billion of commercial paper outstanding at March 31, 2026 and Dec. 31, 2025, respectively. The average commercial paper outstanding was $1.9 billion for the first three months of 2026 and $1.3 billion for the first three months of 2025.

BNY 29

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Restrictions on our ability to obtain funds from our subsidiaries are discussed in more detail in "Supervision and Regulation – Capital Planning and Stress Testing – Payment of Dividends, Stock Repurchases and Other Capital Distributions" and in Note 18 of the Notes to Consolidated Financial Statements, both in our 2025 Annual Report. At March 31, 2026, nonbank subsidiaries of the Parent had liquid assets of approximately $4.4 billion.

Pershing LLC has one uncommitted line of credit in place for funding purposes that is guaranteed by the Parent for $300 million. There were no borrowings under this line in the first quarter of 2026. Pershing Limited, an indirect UK-based subsidiary of BNY, has one line of credit amounting to $150 million, and Pershing Securities Limited, whose parent is Pershing Limited, has one line of credit amounting to $100 million. Both of these lines are guaranteed by the Parent. Average borrowings across these lines were less than $1 million in the first quarter of 2026.

The double leverage ratio is the ratio of our equity investment in subsidiaries divided by our consolidated Parent company equity, which includes our noncumulative perpetual preferred stock. In short, the double leverage ratio measures the extent to which equity in subsidiaries is financed by Parent company debt. As the double leverage ratio increases, this can reflect greater demands on a company's cash flows in order to service interest payments and debt maturities. BNY's double leverage ratio is managed in a range considering the high level of unencumbered available liquid assets held in its principal subsidiaries (such as central bank deposit placements and government securities), the Company's cash generating fee-based business model, with fee revenue representing 70% of total revenue in the first quarter of 2026, and the dividend capacity of our banking subsidiaries. Our double leverage ratio was 116.3% at March 31, 2026 and 118.6% at Dec. 31, 2025, and within the range targeted by management.

*Uses of funds*

The Parent's major uses of funds are repurchases of common stock, payment of dividends, principal and interest payments on its borrowings, acquisitions and additional investments in its subsidiaries.

In February 2026, a quarterly dividend of $0.53 per common share was paid to common shareholders.

Our common stock dividend payout ratio was 24% for the first quarter of 2026.

In the first quarter of 2026, we repurchased 8.3 million common shares at an average price of $119.06 per common share, for a total cost of $983 million.

*Liquidity coverage ratio ("LCR")*

U.S. regulators have established an LCR that requires certain banking organizations, including BNY, to maintain a minimum amount of unencumbered high-quality liquid assets ("HQLA") sufficient to withstand the net cash outflow under a hypothetical standardized acute liquidity stress scenario for a 30-day time horizon.

The following table presents BNY's consolidated HQLA, and the average HQLA and average LCR.

---

| | | |
|:---|:---|:---|
| **Consolidated HQLA and LCR** | **March 31, 2026** | Dec. 31, 2025 |
| *(dollars in billions)* | **March 31, 2026** | Dec. 31, 2025 |
| Cash *(a)* | $**169** | $115 |
| Securities *(b)* | **115** | 113 |
| &nbsp;&nbsp;Total consolidated HQLA *(c)* | $**284** | $228 |
| &nbsp;&nbsp;Total consolidated HQLA – average *(c)* | $**212** | $209 |
| &nbsp;&nbsp;Average consolidated LCR | **111%** | 112% |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Primarily includes cash on deposit with central banks.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Primarily includes securities of U.S. government-sponsored enterprises, the U.S. Treasury, sovereigns and U.S. agencies.*

*(c)&nbsp;&nbsp;&nbsp;&nbsp;Consolidated HQLA presented before adjustments. After haircuts and the impact of trapped liquidity, consolidated HQLA totaled $223 billion at March 31, 2026 and $165 billion at Dec. 31, 2025, and averaged $150 billion for the first quarter of 2026 and $147 billion for the fourth quarter of 2025.*

BNY and each of our affected domestic bank subsidiaries were compliant with the U.S. LCR requirements of at least 100% throughout the first quarter of 2026.

*Net stable funding ratio ("NSFR")*

The NSFR is a liquidity requirement applicable to large U.S. banking organizations, including BNY. The NSFR is expressed as a ratio of the available stable funding to the required stable funding amount over a one-year horizon. Our average consolidated NSFR was 131% for the first quarter of 2026 and 130% for the fourth quarter of 2025.

30 BNY

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BNY and each of our affected domestic bank subsidiaries were compliant with the NSFR requirement of at least 100% throughout the first quarter of 2026.

*Statement of cash flows*

The following summarizes the activity reflected on the consolidated statement of cash flows. While this information may be helpful to highlight certain macro trends and business strategies, the cash flow analysis may not be as relevant when analyzing changes in our net earnings and net assets. We believe that, in addition to the traditional cash flow analysis, the discussion related to liquidity and dividends and asset/liability management herein may provide more useful context in evaluating our liquidity position and related activity.

Net cash used for operating activities was $3.0 billion in the three months ended March 31, 2026, compared with net cash provided by operating activities of $412 million in the three months ended March 31, 2025. In the three months ended March 31, 2026, cash flows used for operating activities primarily resulted from changes in trading assets and liabilities and changes in accruals and other, net, partially offset by earnings.

In the three months ended March 31, 2025, cash flows provided by operating activities primarily resulted from changes in trading assets and liabilities and earnings, partially offset by changes in accruals and other, net.

Net cash used for investing activities was $83.7 billion in the three months ended March 31, 2026, compared with $18.8 billion in the three months ended March 31, 2025. In the three months ended March 31, 2026, net cash used for investing activities primarily resulted from changes in interest-bearing deposits with the Federal Reserve and other central banks, loans and investment securities. In the three months ended March 31, 2025, net cash used for investing activities primarily resulted from changes in interest-bearing deposits with the Federal Reserve and other central banks and investment securities.

Net cash provided by financing activities was $88.3 billion in the three months ended March 31, 2026, compared with $21.1 billion in the three months ended March 31, 2025. In the three months ended March 31, 2026, and the three months ended March 31, 2025, net cash provided by financing activities primarily resulted from changes in deposits.

**Capital**

---

| | | |
|:---|:---|:---|
| **Capital data** | **March 31, 2026** | Dec. 31, 2025 |
| *(dollars in millions, except per share amounts; common shares in thousands)* | **March 31, 2026** | Dec. 31, 2025 |
| BNY shareholders' equity to total assets ratio | **8.0%** | 9.4% |
| BNY common shareholders' equity to total assets ratio | **7.0%** | 8.4% |
| Total BNY shareholders' equity | $**44783** | $44313 |
| Total BNY common shareholders' equity | $**39452** | $39477 |
| BNY tangible common shareholders' equity – Non-GAAP *(a)* | $**21795** | $21777 |
| Book value per common share | $**57.48** | $57.36 |
| Tangible book value per common share – Non-GAAP *(a)* | $**31.75** | $31.64 |
| Closing stock price per common share | $**118.63** | $116.09 |
| Market capitalization | $**81425** | $79897 |
| Common shares outstanding | **686379** | 688236 |
| **Quarterly:** |  |  |
| Cash dividends per common share | $**0.53** | $0.53 |
| Common dividend payout ratio | **24%** | 26% |
| Common dividend yield *(annualized)* | **1.8%** | 1.8% |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;See "Supplemental information – Explanation of GAAP and Non-GAAP financial measures" beginning on page [39](#ibb7454214cef4c6cb1cf4d8ba7a71f33_127) for a reconciliation of GAAP to Non-GAAP measures.* 

The Bank of New York Mellon Corporation total shareholders' equity was $44.8 billion at March 31, 2026 and $44.3 billion at Dec. 31, 2025. The increase primarily reflects capital generated through

earnings and the net increase in preferred stock, partially offset by capital returned through common stock repurchases and dividends and a net decrease in accumulated other comprehensive income.

BNY 31

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The unrealized loss (after-tax) on our available-for-sale securities portfolio, net of hedges, included in accumulated other comprehensive income was $610 million at March 31, 2026, compared with $241 million at Dec. 31, 2025. The increase in the net unrealized loss, including the impact of hedges, primarily reflects the impact of higher interest rates.

In March 2026, the Parent issued 500,000 depositary shares, each representing a 1/100th interest in a share of the Parent's Series M Noncumulative Perpetual Preferred Stock. Holders of the Series M preferred stock are entitled to receive dividends, if declared by the Parent's Board of Directors, on March 20, June 20, September 20 and December 20 of each year, commencing June 20, 2026. See Note 10 of the Notes to Consolidated Financial Statements for additional information on the Parent's preferred stock.

In April 2024, we announced a share repurchase authorization providing for the repurchase of $6.0 billion of common shares. At March 31, 2026, the maximum amount yet to be purchased under this authorization was $814 million. In April 2026, we announced a new share repurchase authorization providing for the repurchase of $10.0 billion of common shares in addition to any remaining capacity under the existing April 2024 authorization. In the first three months of 2026, we repurchased 8.3 million common shares at an average price of $119.06 per common share for a total cost of $983 million.

*Capital adequacy*

Regulators establish certain levels of capital for bank holding companies ("BHCs") and banks, including BNY and our bank subsidiaries, in accordance with established quantitative measurements. For the Parent to maintain its status as a financial holding company, our U.S. bank subsidiaries and BNY must, among other things, qualify as "well capitalized." As of March 31, 2026 and Dec. 31, 2025, BNY and our U.S. bank subsidiaries were "well capitalized."

Failure to satisfy regulatory standards, including "well capitalized" status or capital adequacy rules more generally, could result in limitations on our activities and adversely affect our financial condition. See the discussion of these matters in "Supervision and Regulation – Regulated Entities of BNY and Ancillary Regulatory Requirements" and "Risk Factors – Capital and Liquidity Risk – Failure to satisfy regulatory standards, including "well capitalized" and "well managed" status or capital adequacy and liquidity rules more generally, could result in limitations on our activities and adversely affect our business and financial condition," both of which are in our 2025 Annual Report.

The U.S. banking agencies' capital rules are based on the framework adopted by the Basel Committee on Banking Supervision ("BCBS"), as amended from time to time. For additional information on these capital requirements, see "Supervision and Regulation" in our 2025 Annual Report.

32 BNY

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The table below presents our consolidated and largest bank subsidiary regulatory capital ratios.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Consolidated and largest bank subsidiary regulatory capital ratios** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | Dec. 31, 2025 |
| **Consolidated and largest bank subsidiary regulatory capital ratios** | Well capitalized |  | Minimum required |  | Capital<br>ratios | Capital<br>ratios |
| **Consolidated and largest bank subsidiary regulatory capital ratios** | Well capitalized |  | Minimum required | *(a)* | Capital<br>ratios | Capital<br>ratios |
| **<u>Consolidated regulatory capital ratios</u>:** *(b)* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Advanced Approaches:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CET1 ratio | N/A | *(c)* | 8.5% |  | **12.7%** | 13.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tier 1 capital ratio | 6% |  | 10 |  | **15.9** | 16.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total capital ratio | 10 |  | 12 |  | **16.6** | 16.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Standardized Approach:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CET1 ratio | N/A | *(c)* | 8.5% |  | **11.0%** | 11.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tier 1 capital ratio | 6% |  | 10 |  | **13.8** | 14.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total capital ratio | 10 |  | 12 |  | **14.6** | 15.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tier 1 leverage ratio | N/A | *(c)* | 4 |  | **6.0** | 6.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;SLR *(d)* | N/A | *(c)* | 5 |  | **6.6** | 6.7 |
| **<u>The Bank of New York Mellon regulatory capital ratios</u>:** *(b)(e)* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CET1 ratio | 6.5% |  | 7% |  | **14.4%** | 16.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tier 1 capital ratio | 8 |  | 8.5 |  | **14.4** | 16.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total capital ratio | 10 |  | 10.5 |  | **14.6** | 16.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tier 1 leverage ratio | 5 |  | 4 |  | **6.1** | 6.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;SLR *(d)* | 6 |  | 3 |  | **7.2** | 7.7 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Minimum requirements for March 31, 2026 include minimum thresholds plus currently applicable buffers. The U.S. global systemically important banks ("G-SIB") surcharge of 1.5% is subject to change. The countercyclical capital buffer is currently set to 0%. The stress capital buffer ("SCB") requirement is 2.5%, equal to the regulatory minimum for Standardized Approach capital ratios.* 

*(b)&nbsp;&nbsp;&nbsp;&nbsp;For our CET1, Tier 1 capital and Total capital ratios, our effective capital ratios under U.S. capital rules are the lower of the ratios as calculated under the Standardized and Advanced Approaches. The Tier 1 leverage ratio is based on Tier 1 capital and quarterly average total assets.*

*(c)&nbsp;&nbsp;&nbsp;&nbsp;The Federal Reserve's regulations do not establish well capitalized thresholds for these measures for BHCs.* 

*(d)&nbsp;&nbsp;&nbsp;&nbsp;The SLR is based on Tier 1 capital and total leverage exposure, which includes certain off-balance sheet exposures.* 

*(e)&nbsp;&nbsp;&nbsp;&nbsp;The Bank of New York Mellon's effective capital ratios under the U.S. capital rules are the lower of the ratios as calculated under the Standardized and Advanced Approaches, which for the periods presented was the Standardized Approach.*

*N/A – Not applicable.*

Our CET1 ratio under the Standardized Approach was 11.0% at March 31, 2026 and 11.9% at Dec. 31, 2025. The decrease primarily reflects higher RWAs driven by a single-day increase in overnight loan balances on the last day of the quarter, along with higher client activity in agency securities lending and foreign exchange.

The Tier 1 leverage ratio was 6.0% at March 31, 2026 and 6.0% at Dec. 31, 2025. The slight decrease reflects higher average assets, largely offset by the increase in Tier 1 capital due to the issuance of preferred stock.

Risk-based capital ratios vary depending on the size of the balance sheet at period end and the levels and types of investments in assets, and leverage ratios vary based on the average size of the balance sheet over the quarter. The balance sheet size fluctuates from period to period based on levels of customer and market activity. In general, when servicing clients

are more actively trading securities, deposit balances and the balance sheet as a whole are higher. In addition, when markets experience significant volatility or stress, our balance sheet size may increase considerably as client deposit levels increase.

Our capital ratios are necessarily subject to, among other things, anticipated compliance with all necessary enhancements to model calibration, approval by regulators of certain models used as part of RWA calculations, other refinements, further implementation guidance from regulators, market practices and standards and any changes BNY may make to its businesses. As a consequence of these factors, our capital ratios may materially change and may be volatile over time and from period to period.

Under the Advanced Approaches, our operational loss risk model is informed by external losses, including fines and penalties levied against institutions in the financial services industry, particularly those that

BNY 33

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relate to businesses in which we operate, and as a result, external losses have impacted and could in the future impact the amount of capital that we are required to hold.

The following table presents our capital components and RWAs, the average assets used for leverage capital purposes and leverage exposure used for SLR purposes.

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| | | |
|:---|:---|:---|
| **Capital components and <br> risk-weighted assets** | | |
| **Capital components and <br> risk-weighted assets** | **March 31, 2026** | Dec. 31, 2025 |
| *(in millions)* | **March 31, 2026** | Dec. 31, 2025 |
| **CET1:** |  |  |
| Common shareholders' equity | $**39452** | $39477 |
| Adjustments for: |  |  |
| &nbsp;&nbsp;Goodwill and intangible <br>&nbsp;&nbsp;&nbsp;&nbsp;assets *(a)* | **(17657)** | (17700) |
| &nbsp;&nbsp;&nbsp;Net pension fund assets | **(381)** | (375) |
| &nbsp;&nbsp;&nbsp;Embedded goodwill | **(254)** | (258) |
| &nbsp;&nbsp;&nbsp;Deferred tax assets | **(53)** | (54) |
| &nbsp;&nbsp;&nbsp;Other | **1** | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total CET1 | **21108** | 21086 |
| **Other Tier 1 capital:** |  |  |
| Preferred stock | **5331** | 4836 |
| Other | **(4)** | (13) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Tier 1 capital | $**26435** | $25909 |
| **Tier 2 capital:** |  |  |
| Subordinated debt | $**1148** | $1148 |
| Allowance for credit losses | **347** | 344 |
| Other | **(3)** | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Tier 2 capital – Standardized Approach | **1492** | 1481 |
| Less: Allowance for credit losses | **347** | 344 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Tier 2 capital – Advanced Approaches | $**1145** | $1137 |
| **Total capital:** |  |  |
| Standardized Approach | $**27927** | $27390 |
| Advanced Approaches | $**27580** | $27046 |
| **Risk-weighted assets:** |  |  |
| Standardized Approach | $**191849** | $177677 |
| Advanced Approaches: |  |  |
| &nbsp;&nbsp;&nbsp;Credit Risk | $**96549** | $91942 |
| &nbsp;&nbsp;&nbsp;Market Risk | **3869** | 4201 |
| &nbsp;&nbsp;&nbsp;Operational Risk | **66050** | 66275 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Advanced Approaches | $**166468** | $162418 |
| **Average assets for Tier 1 leverage ratio** | $**443556** | $432803 |
| **Total leverage exposure for SLR** | $**402251** | $388529 |

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*(a)&nbsp;&nbsp;&nbsp;&nbsp;Reduced by deferred tax liabilities associated with intangible assets and tax-deductible goodwill.*

The table below presents the factors that impacted CET1 capital.

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| | |
|:---|:---|
| | **1Q26** |
| **CET1 generation**<br>*(in millions)* | **1Q26** |
| CET1 – Beginning of period | $**21086** |
| Net income applicable to common shareholders of The Bank of New York Mellon Corporation | **1562** |
| Goodwill and intangible assets, net of related deferred tax liabilities | **43** |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross CET1 generated | **1605** |
| Capital returned: |  |
| &nbsp;&nbsp;&nbsp;Common stock repurchases | **(983)** |
| &nbsp;&nbsp;Common stock dividends *(a)* | **(376)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total capital returned | **(1359)** |
| Other comprehensive gain (loss): |  |
| &nbsp;&nbsp;&nbsp;Unrealized gain (loss) on assets available-for-sale | **(369)** |
| &nbsp;&nbsp;&nbsp;Foreign currency translation | **(87)** |
| &nbsp;&nbsp;&nbsp;Unrealized gain (loss) on cash flow hedges | **(19)** |
| &nbsp;&nbsp;&nbsp;Defined benefit plans | **14** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive gain (loss) | **(461)** |
| Additional paid-in capital *(b)* | **235** |
| Other additions (deductions): |  |
| &nbsp;&nbsp;&nbsp;Net pension fund assets | **(6)** |
| &nbsp;&nbsp;&nbsp;Embedded goodwill | **4** |
| &nbsp;&nbsp;&nbsp;Deferred tax assets | **1** |
| &nbsp;&nbsp;&nbsp;Other | **3** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other additions | **2** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net CET1 generated | **22** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CET1 – End of period | $**21108** |

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*(a)&nbsp;&nbsp;&nbsp;&nbsp;Includes dividend equivalents on share-based awards.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Primarily related to stock awards and stock issued for employee benefit plans.*

The following table shows the impact on the consolidated capital ratios at March 31, 2026 of a $100 million increase or decrease in common equity, or a $1 billion increase or decrease in RWAs, quarterly average assets or total leverage exposure.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Sensitivity of consolidated capital ratios at March 31, 2026** | **Sensitivity of consolidated capital ratios at March 31, 2026** | **Sensitivity of consolidated capital ratios at March 31, 2026** | **Sensitivity of consolidated capital ratios at March 31, 2026** | **Sensitivity of consolidated capital ratios at March 31, 2026** |
|  | Increase or decrease of | Increase or decrease of | Increase or decrease of | Increase or decrease of |
| *(in basis points)* | $100 million<br>in common <br>equity | $100 million<br>in common <br>equity | $1 billion in RWA, quarterly average assets or total leverage exposure | $1 billion in RWA, quarterly average assets or total leverage exposure |
| **CET1:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Standardized Approach | 5 | bps | 6 | bps |
| &nbsp;&nbsp;&nbsp;&nbsp;Advanced Approaches | 6 |  | 8 |  |
| **Tier 1 capital:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Standardized Approach | 5 |  | 7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Advanced Approaches | 6 |  | 10 |  |
| **Total capital:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Standardized Approach | 5 |  | 8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Advanced Approaches | 6 |  | 10 |  |
| **Tier 1 leverage** | 2 |  | 1 |  |
| **SLR** | 2 |  | 2 |  |

---

34 BNY

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*Stress capital buffer*

In August 2025, the Federal Reserve announced that BNY's SCB requirement would remain at 2.5%, equal to the regulatory floor, effective on Oct. 1, 2025, under the current capital plan rule. In February 2026, the Federal Reserve indicated that BNY's SCB requirement of 2.5% would be effective through Sept. 30, 2027. See "Supervision and Regulation" in our 2025 Annual Report for additional information.

*Total Loss-Absorbing Capacity ("TLAC")*

The following summarizes the minimum requirements for BNY's external TLAC and external long-term debt ("LTD") ratios, plus currently applicable buffers.

---

| | | |
|:---|:---|:---|
| | **As a % of RWAs** *(a)* | **As a % of total leverage exposure** |
| **Eligible external TLAC ratios** | Regulatory minimum of 18% plus a buffer *(b)* equal to the sum of 2.5%, the method 1 <br>G-SIB surcharge (currently 1%), and the countercyclical capital buffer, if any | Regulatory minimum of 7.5% plus a buffer *(c)* equal to 2% |
| **Eligible external LTD ratios** | Regulatory minimum of 6% plus the greater of the method 1 or method 2 G-SIB surcharge (currently 1.5%) | 4.5% |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;RWA is the greater of Standardized Approach and Advanced Approaches.* 

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Buffer to be met using only CET1.* 

*(c)&nbsp;&nbsp;&nbsp;&nbsp;Buffer to be met using only Tier 1 capital.*

External TLAC consists of the Parent's Tier 1 capital and eligible unsecured LTD issued by it that has a remaining term to maturity of at least one year and satisfies certain other conditions. Eligible LTD consists of the unpaid principal balance of eligible unsecured debt securities, subject to haircuts for amounts due to be paid within two years, that satisfy certain other conditions. Debt issued prior to Dec. 31, 2016, has been permanently grandfathered to the extent these instruments otherwise would be ineligible only due to containing impermissible acceleration rights or being governed by foreign law.

The following table presents our external TLAC and external LTD ratios.

---

| | | | |
|:---|:---|:---|:---|
| **TLAC and LTD ratios** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | Minimum<br>required | Minimum ratios<br>with buffers |  |
|  | Minimum<br>required | Minimum ratios<br>with buffers | Ratios |
| Eligible external TLAC: |  |  |  |
| &nbsp;&nbsp;As a percentage of RWA | 18.0% | 21.5% | 28.2% |
| &nbsp;&nbsp;As a percentage of total leverage exposure | 7.5% | 9.5% | 13.4% |
| Eligible external LTD: |  |  |  |
| &nbsp;&nbsp;&nbsp;As a percentage of RWA | 7.5% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | 13.3% |
| &nbsp;&nbsp;As a percentage of total leverage exposure | 4.5% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A | 6.4% |

---

*N/A – Not applicable.*

If BNY maintains risk-based ratio or leverage TLAC measures above the minimum required level, but with a risk-based ratio or leverage below the minimum level with buffers, we will face constraints on dividends, equity repurchases and discretionary executive compensation based on the amount of the shortfall and eligible retained income.

**Trading activities and risk management**

Our trading activities are focused on acting as a market-maker for our customers, facilitating customer trades and risk-mitigating hedging in compliance with the Volcker Rule. The risk from market-making activities for customers is managed by our traders and limited in total exposure through a system of position limits, value-at-risk ("VaR") methodology and other market sensitivity measures. VaR is the potential loss in value due to adverse market movements over a defined time horizon with a specified confidence level. The calculation of our VaR used by management and presented below assumes a one-day holding period, utilizes a 99% confidence level and incorporates non-linear product characteristics. VaR facilitates comparisons across portfolios of different risk characteristics. VaR also captures the diversification of aggregated risk at the firm-wide level.

BNY 35

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VaR represents a key risk management measure, and it is important to note the inherent limitations to VaR, which include:

• VaR does not estimate potential losses over longer time horizons where moves may be extreme;

• VaR does not take into account the potential variability of market liquidity; and

• Previous moves in market risk factors may not produce accurate predictions of all future market moves.

See Note 14 of the Notes to Consolidated Financial Statements for additional information on the VaR methodology.

The following tables indicate the calculated VaR amounts for the trading portfolio for the designated periods using the historical simulation VaR model.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **VaR** *(a)* | **1Q26** | **1Q26** | **1Q26** | **March 31, 2026** |
| *(in millions)* | **Average** | **Minimum** | **Maximum** | **March 31, 2026** |
| Interest rate | $**18.6** | $**14.2** | $**24.7** | $**23.1** |
| Foreign exchange | **20.2** | **16.1** | **25.4** | **23.8** |
| Equity | **0.1** | **—** | **0.5** | **0.2** |
| Credit | **0.8** | **0.5** | **1.5** | **1.2** |
| Diversification | **(37.8)** | **N/M** | **N/M** | **(45.2)** |
| Overall portfolio | **1.9** | **1.0** | **4.2** | **3.1** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **VaR** *(a)* | 1Q25 | 1Q25 | 1Q25 | March 31, 2025 |
| *(in millions)* | Average | Minimum | Maximum | March 31, 2025 |
| Interest rate | $2.6 | $2.1 | $3.3 | $2.6 |
| Foreign exchange | 2.5 | 1.7 | 3.3 | 2.9 |
| Equity | 0.2 |  | 0.5 | 0.3 |
| Credit | 1.4 | 1.0 | 1.8 | 1.3 |
| Diversification | (5.0) | N/M | N/M | (4.8) |
| Overall portfolio | 1.7 | 1.3 | 2.4 | 2.3 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;VaR exposure does not include the impact of the Company's consolidated investment management funds and seed capital investments.*

*N/M – Because the minimum and maximum may occur on different days for different risk components, it is not meaningful to compute a minimum and maximum portfolio diversification effect.*

The interest rate component of VaR represents instruments whose values are predominantly driven by interest rate levels. These instruments include, but are not limited to, U.S. Treasury securities, swaps, swaptions, forward rate agreements, exchange-traded futures and options, and other interest rate derivative products.

The foreign exchange component of VaR represents instruments whose values predominantly vary with the level or volatility of currency exchange rates or interest rates. These instruments include, but are not limited to, currency balances, spot and forward transactions, currency options and other currency derivative products.

The equity component of VaR consists of instruments that represent an ownership interest in the form of domestic and foreign common stock or other equity-linked instruments. These instruments include, but are not limited to, common stock, exchange-traded funds, preferred stock, listed equity options (puts and calls), OTC equity options, equity total return swaps, equity index futures and other equity derivative products.

The credit component of VaR represents instruments whose values are predominantly driven by credit spread levels, i.e., idiosyncratic default risk. These instruments include, but are not limited to, single issuer credit default swaps, and securities with exposures from corporate and municipal credit spreads.

The diversification component of VaR is the risk reduction benefit that occurs when combining portfolios and offsetting positions, and from the correlated behavior of risk factor movements.

During the first quarter of 2026, interest rate risk generated 47% of average gross VaR, foreign exchange risk generated 51% of average gross VaR, credit risk generated 2% of average gross VaR and equity risk generated less than 1% of average gross VaR. During the first quarter of 2026, our daily trading loss exceeded our calculated VaR amount of the overall portfolio on one occasion.

The following table of total daily trading revenue or loss illustrates the number of trading days in which our trading revenue or loss fell within particular ranges during the past five quarters. The shift in the number of trading days when trading revenue was between $2.5 and $5.0 million and more than $5 million increased compared with the fourth quarter of 2025 primarily due to higher foreign exchange volumes and higher client activity in our fixed income and equity trading business.

36 BNY

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---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Distribution of trading revenue (loss)** *(a)* | **Distribution of trading revenue (loss)** *(a)* | **Distribution of trading revenue (loss)** *(a)* | **Distribution of trading revenue (loss)** *(a)* | | |  |  |
|  | Quarter ended | Quarter ended | Quarter ended | Quarter ended | Quarter ended |  |  |
| *(dollars in millions)* | **March 31, 2026** | Dec. 31, 2025 | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 |  |  |
| *(dollars in millions)* | **March 31, 2026** | Dec. 31, 2025 | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | **Revenue range:** | Number of days |
| Less than $(2.5) | **—** |  |  | 1 | 1 |  |  |
| $(2.5) – $0 | **1** |  | 2 | 2 | 4 |  |  |
| $0 – $2.5 | **6** | 16 | 15 | 10 | 16 |  |  |
| $2.5 – $5.0 | **22** | 32 | 31 | 28 | 17 |  |  |
| More than $5.0 | **32** | 16 | 16 | 22 | 23 |  |  |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Trading revenue (loss) includes realized and unrealized gains and losses primarily related to spot and forward foreign exchange transactions, derivatives and securities trades for our customers and excludes any associated commissions, underwriting fees and net interest income.*

Trading assets include debt and equity instruments and derivative assets, primarily foreign exchange and interest rate contracts, not designated as hedging instruments. Trading assets were $16.5 billion at March 31, 2026 and $14.3 billion at Dec. 31, 2025.

Trading liabilities include debt and equity instruments and derivative liabilities, primarily foreign exchange and interest rate contracts, not designated as hedging instruments. Trading liabilities were $4.7 billion at March 31, 2026 and $6.1 billion at Dec. 31, 2025.

Under our fair value methodology for derivative contracts, an initial "risk-neutral" valuation is performed on each position assuming time discounting based on a AA credit curve. In addition, we consider credit risk in arriving at the fair value of our derivatives.

We reflect external credit ratings as well as observable credit default swap spreads for both ourselves and our counterparties when measuring the fair value of our derivative positions. Accordingly, the valuation of our derivative positions is sensitive to the current changes in our own credit spreads, as well as those of our counterparties.

At March 31, 2026, our OTC derivative assets, including those in hedging relationships, of $3.6 billion included a credit valuation adjustment ("CVA") deduction of $7 million. Our OTC derivative liabilities, including those in hedging relationships, of $2.4 billion included a debit valuation adjustment ("DVA") of $7 million related to our own credit spread. Net of hedges, the CVA increased by less than $1 million and the DVA increased by less than $1 million in the first quarter of 2026, which increased investment and other revenue – other trading revenue by $1 million. The net impact

of the CVA and DVA, net of hedges, decreased investment and other revenue – other trading revenue by $1 million in the first quarter of 2025.

The table below summarizes our exposure, net of collateral related to our derivative counterparties, as determined on an internal risk management basis. Significant changes in counterparty credit ratings could alter the level of credit risk faced by BNY.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Foreign exchange and other trading** &nbsp;&nbsp;&nbsp;&nbsp;**counterparty risk-rating profile** | **Foreign exchange and other trading** &nbsp;&nbsp;&nbsp;&nbsp;**counterparty risk-rating profile** | **Foreign exchange and other trading** &nbsp;&nbsp;&nbsp;&nbsp;**counterparty risk-rating profile** | **Foreign exchange and other trading** &nbsp;&nbsp;&nbsp;&nbsp;**counterparty risk-rating profile** | **Foreign exchange and other trading** &nbsp;&nbsp;&nbsp;&nbsp;**counterparty risk-rating profile** |
|  | **March 31, 2026** | **March 31, 2026** | Dec. 31, 2025 | Dec. 31, 2025 |
| *(dollars in millions)* | Exposure, net of collateral | Percentage of exposure, net of collateral | Exposure, net of collateral | Percentage of exposure, net of collateral |
| Investment grade | $**3143** | **97%** | $1078 | 95% |
| Non-investment grade | **90** | **3%** | 62 | 5% |
| Total | $**3233** | **100%** | $1140 | 100% |

---

**Asset/liability management**

Our diversified business activities include processing securities, accepting deposits, investing in securities, lending, raising money as needed to fund assets and other transactions. The market risks from these activities include interest rate risk and foreign exchange risk. Our primary market risk is exposure to movements in U.S. dollar interest rates and certain foreign currency interest rates. We actively manage interest rate sensitivity and use earnings simulation and discounted cash flow models to identify interest rate exposures.

An earnings simulation model is the primary tool used to assess changes in pre-tax net interest income between a baseline scenario and hypothetical interest rate scenarios. Interest rate sensitivity is quantified by calculating the change in pre-tax net interest income between the scenarios over a 12-month measurement period.

The baseline scenario incorporates the market's forward rate expectations and management's assumptions regarding client deposit rates, credit spreads, changes in the prepayment behavior of loans and securities and the impact of derivative financial instruments used for interest rate risk management purposes as of each respective quarter-end. These assumptions have been developed through a combination of historical analysis and future expected pricing behavior and are inherently uncertain. Actual

BNY 37

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results may differ materially from projected results due to timing, magnitude and frequency of interest rate changes, and changes in market conditions and management's strategies, among other factors. Client deposit levels and mix are key assumptions impacting net interest income in the baseline as well as the hypothetical interest rate scenarios. The earnings simulation model assumes static deposit levels and mix, and it also assumes that no management actions will be taken to mitigate the effects of interest rate changes. Typically, the baseline scenario uses the average deposit balances of the quarter.

In the table below, we use the earnings simulation model to assess the impact of various hypothetical interest rate scenarios compared to the baseline scenario. In each of the scenarios, all currencies' interest rates are instantaneously shifted higher or lower at the start of the forecast. Long-term interest rates are defined as all tenors equal to or greater than three years and short-term interest rates are defined as all tenors equal to or less than three months. Interim term points are interpolated where applicable. The impact of interest rate shifts may not be linear. The results of this earnings simulation should therefore not be extrapolated for more severe interest rate scenarios than those presented in the table below.

The following table shows net interest income sensitivity for BNY.

---

| | | | |
|:---|:---|:---|:---|
| **Estimated changes in net interest income** <br>*(in millions)* | **March 31, 2026** | Dec. 31, 2025 | March 31, 2025 |
| Up 200 bps rate shock vs. baseline | $**7** | $(19) | $26 |
| Up 100 bps rate shock vs. baseline | **46** | 30 | 58 |
| Long-term up 100 bps, short-term unchanged | **107** | 116 | 104 |
| Short-term up 100 bps, long-term unchanged | **(61)** | (86) | (46) |
| Long-term down 100 bps, short-term unchanged | **(115)** | (126) | (113) |
| Short-term down 100 bps, long-term unchanged | **(13)** | (5) | (31) |
| Down 100 bps rate shock vs. baseline | **(128)** | (131) | (144) |
| Down 200 bps rate shock vs. baseline | **(333)** | (372) | (372) |

---

At March 31, 2026, the impacts of a 100 and 200 basis points upward or downward shift in rates on net interest income were relatively unchanged compared with Dec. 31, 2025, reflecting balanced interest rate positioning.

While the net interest income sensitivity scenario calculations assume static deposit balances to facilitate consistent period-over-period comparisons, net interest income is impacted by changes in deposit balances and interest rate trajectory. Noninterest-bearing deposits are particularly sensitive to changes in short-term rates.

To illustrate the net interest income sensitivity to noninterest-bearing deposits, we estimate that a $5 billion instantaneous reduction/increase in U.S. dollar-denominated noninterest-bearing deposits would reduce/increase the net interest income sensitivity results in the up 100 basis point rate shock scenario in the table above by approximately $230 million, and in the down 100 basis point rate shock scenario by approximately $130 million. The impact would be smaller if the reduction/increase was assumed to be a mixture of interest-bearing and noninterest-bearing deposits.

Additionally, during periods of low short-term interest rates, money market mutual fund fees and other similar fees are typically waived to protect investors from negative returns.

For a discussion of factors impacting the growth or contraction of deposits, see "Risk Factors – Capital and Liquidity Risk – Our business, financial condition and results of operations could be adversely affected if we do not effectively manage our liquidity" in our 2025 Annual Report.

38 BNY

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**Supplemental information – Explanation of GAAP and Non-GAAP financial measures**

BNY has included in this Form 10-Q certain Non-GAAP financial measures on a tangible basis as a supplement to GAAP information, which exclude goodwill and intangible assets, net of deferred tax liabilities. We believe that the return on tangible common shareholders' equity – Non-GAAP is additional useful information for investors because it presents a measure of those assets that can generate income, and the tangible book value per common share – Non-GAAP is additional useful information because it presents the level of tangible assets in relation to shares of common stock outstanding.

BNY has included revenue measures excluding notable items, including disposal gains. Expense measures, excluding notable items, including severance expense, litigation reserves and the FDIC special assessment, are also presented. Litigation reserves represent accruals for loss contingencies that are both probable and reasonably estimable, but exclude standard business-related legal fees. Income

before taxes, net income applicable to common shareholders of The Bank of New York Mellon Corporation, diluted earnings per share, return on common shareholders' equity, return on tangible common shareholders' equity and pre-tax operating margin, excluding the notable items mentioned above, are also provided. These measures are provided to permit investors to view the financial measures on a basis consistent with how management views the businesses.

The presentation of the growth rates of investment management and performance fees on a constant currency basis permits investors to assess the significance of changes in foreign currency exchange rates. Growth rates on a constant currency basis were determined by applying the current period foreign currency exchange rates to the prior period revenue. We believe that this presentation, as a supplement to GAAP information, gives investors a clearer picture of the related revenue results without the variability caused by fluctuations in foreign currency exchange rates.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Reconciliation of Non-GAAP measures, excluding notable items** | | | | **%** |
| *(dollars in millions, except per share amounts)* | **1Q26** |  | 1Q25 | **change** |
| Total revenue – GAAP | $**5409** |  | $4792 | **13%** |
| Less: Disposal gains (losses) *(a)* | **—** |  | 40 |  |
| &nbsp;&nbsp;Adjusted total revenue – Non-GAAP | $**5409** |  | $4752 | **14%** |
| Total noninterest expense – GAAP | $**3400** |  | $3252 | **5%** |
| Less: Severance expense *(b)* | **18** |  | 32 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Litigation reserves *(b)* | **3** |  | 2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FDIC special assessment *(b)* | **(7)** |  | 6 |  |
| &nbsp;&nbsp;Adjusted total noninterest expense – Non-GAAP | $**3386** |  | $3212 | **5%** |
| &nbsp;&nbsp;Net income applicable to common shareholders of The Bank of New York Mellon <br>Corporation – GAAP | $**1562** |  | $1149 | **36%** |
| Less: Disposal gains (losses) *(a)* | **—** |  | 32 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severance expense *(b)* | **(14)** |  | (25) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Litigation reserves *(b)* | **(3)** |  | (1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FDIC special assessment *(b)* | **6** |  | (5) |  |
| &nbsp;&nbsp;Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation – Non-GAAP | $**1573** |  | $1148 | **37%** |
| Diluted earnings per common share – GAAP | $**2.24** |  | $1.58 | **42%** |
| Less: Disposal gains (losses) *(a)* | **—** |  | 0.04 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severance expense *(b)* | **(0.02)** |  | (0.03) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Litigation reserves *(b)* | **—** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FDIC special assessment *(b)* | **0.01** |  | (0.01) |  |
| &nbsp;&nbsp;Total diluted earnings per common share impact of notable items | **(0.02)** | *(c)* |  |  |
| &nbsp;&nbsp;Adjusted diluted earnings per common share – Non-GAAP | $**2.25** | *(c)* | $1.58 | **42%** |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Reflected in investment and other revenue.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Severance expense is reflected in staff expense, litigation reserves in other expense, and FDIC special assessment in bank assessment charges, respectively.*

*(c)&nbsp;&nbsp;&nbsp;&nbsp;Does not foot due to rounding.*

BNY 39

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The following table presents the reconciliation of the pre-tax operating margin.

---

| | | | |
|:---|:---|:---|:---|
| **Pre-tax operating margin reconciliation** | | | |
| *(dollars in millions)* | **1Q26** | 4Q25 | 1Q25 |
| Income before taxes – GAAP | $**2016** | $1845 | $1522 |
| Impact of notable items *(a)* | **(14)** | (51) |  |
| &nbsp;&nbsp;&nbsp;Adjusted income before taxes, excluding notable items – Non-GAAP | $**2030** | $1896 | $1522 |
| Total revenue – GAAP | $**5409** | $5179 | $4792 |
| Impact of notable items *(a)* | **—** |  | 40 |
| &nbsp;&nbsp;&nbsp;Adjusted total revenue, excluding notable items – Non-GAAP | $**5409** | $5179 | $4752 |
| Pre-tax operating margin – GAAP *(b)* | **37%** | 36% | 32% |
| Adjusted pre-tax operating margin – Non-GAAP *(b)* | **38%** | 37% | 32% |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;See page [39](#i2d6f885293ca489582912de2c42d5386_0-0-1-1-895238) for details of notable items and line items impacted. Notable items in the fourth quarter of 2025 include severance expense, litigation reserves and an adjustment for the FDIC special assessment.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Income before taxes divided by total revenue.*

The following table presents the reconciliation of the return on common shareholders' equity and tangible common shareholders' equity.

---

| | | | |
|:---|:---|:---|:---|
| **Return on common shareholders' equity and tangible common shareholders' equity reconciliation** | **1Q26** | 4Q25 | 1Q25 |
| *(dollars in millions)* | **1Q26** | 4Q25 | 1Q25 |
| &nbsp;&nbsp;Net income applicable to common shareholders of The Bank of New York Mellon <br>Corporation – GAAP | $**1562** | $1427 | $1149 |
| Add: Amortization of intangible assets | **9** | 11 | 11 |
| Less: Tax impact of amortization of intangible assets | **2** | 3 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets – Non-GAAP | **1569** | 1435 | 1157 |
| Impact of notable items *(a)* | **(11)** | (43) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets and notable items – Non-GAAP | $**1580** | $1478 | $1156 |
| Average common shareholders' equity | $**39448** | $39142 | $36980 |
| Less: Average goodwill | **16774** | 16777 | 16615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average intangible assets | **2819** | 2827 | 2849 |
| Add: Deferred tax liability – tax deductible goodwill | **1226** | 1227 | 1226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liability – intangible assets | **660** | 662 | 666 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average tangible common shareholders' equity – Non-GAAP | $**21741** | $21427 | $19408 |
| Return on common shareholders' equity – GAAP *(b)* | **16.1%** | 14.5% | 12.6% |
| Adjusted return on common shareholders' equity – Non-GAAP *(b)* | **16.2%** | 14.9% | 12.6% |
| Return on tangible common shareholders' equity – Non-GAAP *(b)* | **29.3%** | 26.6% | 24.2% |
| Adjusted return on tangible common shareholders' equity – Non-GAAP *(b)* | **29.5%** | 27.4% | 24.2% |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;See page [39](#i2d6f885293ca489582912de2c42d5386_0-0-1-1-895238) for details of notable items and line items impacted. Notable items in the fourth quarter of 2025 include severance expense, litigation reserves and an adjustment for the FDIC special assessment.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Returns are annualized.*

40 BNY

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The following table presents the reconciliation of book value and tangible book value per common share.

---

| | | | |
|:---|:---|:---|:---|
| **Book value and tangible book value per common share reconciliation** | **March 31, 2026** | Dec. 31, 2025 | March 31, 2025 |
| *(dollars in millions, except per share amounts and unless otherwise noted)* | **March 31, 2026** | Dec. 31, 2025 | March 31, 2025 |
| The Bank of New York Mellon Corporation shareholders' equity at period end – GAAP | $**44783** | $44313 | $43119 |
| Less: Preferred stock | **5331** | 4836 | 5331 |
| &nbsp;&nbsp;&nbsp;&nbsp;The Bank of New York Mellon Corporation common shareholders' equity at period end – GAAP | **39452** | 39477 | 37788 |
| Less: Goodwill | **16734** | 16767 | 16661 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets | **2809** | 2822 | 2846 |
| Add: Deferred tax liability – tax deductible goodwill | **1226** | 1227 | 1226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liability – intangible assets | **660** | 662 | 666 |
| &nbsp;&nbsp;&nbsp;&nbsp;The Bank of New York Mellon Corporation tangible common shareholders' equity at period end – Non-GAAP | $**21795** | $21777 | $20173 |
| Period-end common shares outstanding *(in thousands)* | **686379** | 688236 | 715434 |
| Book value per common share – GAAP | $**57.48** | $57.36 | $52.82 |
| Tangible book value per common share – Non-GAAP | $**31.75** | $31.64 | $28.20 |

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The following table presents the impact of changes in foreign currency exchange rates on our consolidated investment management and performance fees.

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| | | | |
|:---|:---|:---|:---|
| **Constant currency reconciliation – Consolidated** | | | **%** |
| *(dollars in millions)* | **1Q26** | 1Q25 | **change** |
| Investment management and performance fees – GAAP | $**785** | $739 | **6%** |
| Impact of changes in foreign currency exchange rates | **—** | 14 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted investment management and performance fees – Non-GAAP | $**785** | $753 | **4%** |

---

The following table presents the impact of changes in foreign currency exchange rates on investment management and performance fees reported in the Investment and Wealth Management business segment.

---

| | | | |
|:---|:---|:---|:---|
| **Constant currency reconciliation** – **Investment and Wealth Management business segment** | | | **%** |
| *(dollars in millions)* | **1Q26** | 1Q25 | **change** |
| Investment management and performance fees – GAAP | $**786** | $740 | **6%** |
| Impact of changes in foreign currency exchange rates |  | 14 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted investment management and performance fees – Non-GAAP | $**786** | $754 | **4%** |

---

BNY 41

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**Recent accounting and regulatory developments** 

*Recent accounting developments* 

The following accounting guidance issued by the Financial Accounting Standards Board ("FASB") has not yet been adopted as of March 31, 2026.

*Accounting Standards Update ("ASU") 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*

In November 2024, the FASB issued ASU 2024-03, *Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*, which requires the disaggregation of specific types of expenses, including, but not limited to, employee compensation, depreciation and intangible asset amortization, to be presented in the Notes to the Consolidated Financial Statements. This ASU also requires the disclosure of the total amount of selling expenses, and on an annual basis, the definition of selling expenses.

This ASU is effective for annual reporting periods beginning after Dec. 15, 2026 and interim reporting periods beginning after Dec. 15, 2027 with early adoption permitted. BNY is currently evaluating this guidance and the impact on the expense disclosures.

*ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software*

In September 2025, the FASB issued ASU 2025-06, *Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software*, which amends certain aspects of the accounting for, and disclosure of, software costs. This ASU provides guidance on how to evaluate whether it is probable that a project will be completed and the software will be used to perform the function intended (referred to as the 'probable-to-complete recognition threshold').

This ASU is effective for annual reporting periods beginning after Dec. 15, 2027, and interim reporting periods within those annual reporting periods, with

early adoption permitted. The guidance allows for either prospective, retrospective or a modified prospective application. BNY is currently evaluating this guidance.

*Recent regulatory developments*

For a summary of additional regulatory matters relevant to our operations, see "Supervision and Regulation" in our 2025 Annual Report. The following discussion summarizes certain regulatory and other developments that may affect BNY.

*Changes to the Capital Rule* 

On March 19, 2026, the Board of Governors of the Federal Reserve System (the "Federal Reserve"), the FDIC, and the Office of the Comptroller of the Currency (the "OCC") (collectively, the "Agencies") issued proposed rules that would substantially revise the capital requirements applicable to large banking organizations and to banking organizations with significant trading activity, including BNY. The proposed rules would implement international capital standards most recently issued by the BCBS and would replace the Agencies' July 2023 proposals. Separately, on March 19, 2026, the Federal Reserve proposed revisions to the capital surcharge calculation methodology applicable to G-SIBs, including BNY.

The primary structural change the proposed rules would implement is to streamline the risk-based capital requirements applicable to G-SIBs like BNY. Currently, these organizations are subject to two sets of risk-based capital ratio requirements, one based on the standardized approach, and one based on the advanced approaches, and are required to abide by the more restrictive requirements. Under the proposed rules, Category I and II banking organizations, including BNY, would instead be subject to a single set of risk-based capital requirements based on the Expanded Risk-Based Approach ("ERBA"). The Agencies stated ERBA would improve risk sensitivity relative to the current U.S. capital rules. The proposals would also apply operational risk-based capital requirements for banking organizations subject to ERBA. The proposed revisions to the G-SIB surcharge framework would, among other changes, increase its risk sensitivity and index certain inputs to nominal GDP growth. The proposals would also result in several other changes including more standardized operational-risk formula and revisions to

42 BNY

------

the treatment of securities finance transactions. BNY is evaluating the impact of these proposals.

*Developments in Anti-Money Laundering and Countering The Financing of Terrorism Regulation*

On April 7, 2026, the FDIC, National Credit Union Administration, and OCC issued a notice of proposed rulemaking to revise anti-money laundering ("AML") and countering the financing of terrorism ("CFT") program requirements. The proposed rule would require institutions to establish and maintain a risk-based set of internal policies, procedures, and controls to address AML and CFT concerns. The proposal also would require institutions to revise their AML and CFT controls as their risk profiles change, and to concentrate on higher-risk activities and deprioritize lower-risk activities. The proposal clarifies that banks may share any information with the U.S. Department of the Treasury's Financial Crimes Enforcement Network ("FinCEN") related to AML and CFT supervisory and enforcement actions. FinCEN issued a related rule on April 7, 2026, which also encourages prioritization of higher-risk activities. The proposals would require Federal banking regulators to consult with FinCEN prior to taking certain types of supervisory or enforcement actions related to AML/CFT. BNY is assessing the impact of the proposals.

*Digital Asset Regulatory Developments*

On Feb. 25, 2026, the OCC issued a notice of proposed rulemaking to implement provisions of the "Guiding and Establishing National Innovation for U.S. Stablecoins Act" or the "GENIUS Act", which would establish requirements for OCC-licensed payment stablecoin issuers and provides for certain requirements related to, among other things, reserve assets, custody, redemption, capital, and risk management standards. On April 7, 2026, the FDIC issued a notice of proposed rulemaking to implement provisions of the GENIUS Act, which would establish requirements for FDIC-supervised permitted payment stablecoin issuers and insured depository institutions. BNY is assessing the impact of the proposals.

**Website information**

Our website is <u>www.bny.com</u>. We currently make available the following information under the Investor Relations portion of our website. With respect to filings with the Securities and Exchange Commission (the "SEC"), we post such information as soon as reasonably practicable after we electronically file such materials with, or furnish them to, the SEC.

• All of our SEC filings, including annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to these reports, as well as proxy statements and SEC Forms 3, 4 and 5;

• Our earnings materials and selected management conference calls and presentations;

• Other regulatory disclosures, including: Pillar 3 Disclosures (and Market Risk Disclosure contained therein); Liquidity Coverage Ratio Disclosures; Net Stable Funding Ratio Disclosures; Federal Financial Institutions Examination Council – Consolidated Reports of Condition and Income for a Bank With Domestic and Foreign Offices; Consolidated Financial Statements for Bank Holding Companies; and the Dodd-Frank Act Stress Test Results for BNY and The Bank of New York Mellon; and

• Our Corporate Governance Guidelines, Amended and Restated By-Laws, Directors' Code of Conduct and the Charters of the Audit, Finance, Corporate Governance, Nominating and Social Responsibility, Human Resources and Compensation, Risk and Technology Committees of our Board of Directors.

We may use our website, our LinkedIn accounts (e.g., www.linkedin.com/company/BNYglobal), our X accounts (e.g., @BNYglobal) and other social media channels as additional means of sharing information with the public. The information shared through those channels may be considered to be material, and we encourage investors, the media and others interested in BNY to review the business and financial information we post on our website and on our social media channels. The contents of our website, our social media channels and any other websites referenced herein are not part of or incorporated by reference into this Quarterly Report on Form 10-Q.

BNY 43

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---

| |
|:---|
| **Item 1. Financial Statements** |
| **The Bank of New York Mellon Corporation (and its subsidiaries)** |

---

**Consolidated Income Statement** (unaudited)

---

| | | |
|:---|:---|:---|
| | Quarter ended | Quarter ended |
| | **March 31, 2026** | March 31, 2025 |
|<br>*(in millions, except per share amounts; common shares in thousands)* | **March 31, 2026** | March 31, 2025 |
| **Fee and other revenue** |  |  |
| Investment services fees | $**2652** | $2411 |
| Investment management and performance fees | **785** | 739 |
| Foreign exchange revenue | **232** | 156 |
| Financing-related fees | **62** | 60 |
| Distribution and servicing fees | **37** | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fee revenue | **3768** | 3403 |
| Investment and other revenue | **271** | 230 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fee and other revenue | **4039** | 3633 |
| **Net interest income** |  |  |
| Interest income | **5824** | 6123 |
| Interest expense | **4454** | 4964 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income | **1370** | 1159 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenue | **5409** | 4792 |
| **Provision for credit losses** | **(7)** | 18 |
| **Noninterest expense** |  |  |
| Staff | **1888** | 1834 |
| Software and equipment | **556** | 513 |
| Professional, legal and other purchased services | **388** | 366 |
| Sub-custodian and clearing | **151** | 131 |
| Net occupancy | **123** | 136 |
| Distribution and servicing | **73** | 65 |
| Business development | **50** | 48 |
| Bank assessment charges | **24** | 38 |
| Amortization of intangible assets | **9** | 11 |
| Other | **138** | 110 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | **3400** | 3252 |
| **Income** |  |  |
| Income before income taxes | **2016** | 1522 |
| Provision for income taxes | **386** | 300 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | **1630** | 1222 |
| Net (income) loss attributable to noncontrolling interests related to consolidated investment management funds | **2** | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income applicable to shareholders of The Bank of New York Mellon Corporation | **1632** | 1220 |
| Preferred stock dividends | **(70)** | (71) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income applicable to common shareholders of The Bank of New York Mellon Corporation | $**1562** | $1149 |
| **Average common shares and equivalents outstanding:** |  |  |
| Basic | **691178** | 720951 |
| Common stock equivalents | **6986** | 6447 |
| Diluted | **698164** | 727398 |
| Anti-dilutive securities *(a)* | **978** | 662 |
| **Earnings per share applicable to common shareholders:** |  |  |
| Basic | $**2.26** | $1.59 |
| Diluted | $**2.24** | $1.58 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Represents restricted stock, restricted stock units and stock options outstanding but not included in the computation of diluted average common shares because their effect would be anti-dilutive.*

*See accompanying unaudited Notes to Consolidated Financial Statements.*

44 BNY

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**The Bank of New York Mellon Corporation (and its subsidiaries)**

**Consolidated Comprehensive Income Statement** (unaudited)

---

| | | |
|:---|:---|:---|
| | Quarter ended | Quarter ended |
| | **March 31, 2026** | March 31, 2025 |
|<br>*(in millions)* | **March 31, 2026** | March 31, 2025 |
| Net income | $**1630** | $1222 |
| Other comprehensive income (loss), net of tax: |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustments | **(88)** | 207 |
| &nbsp;&nbsp;&nbsp;Unrealized gain (loss) on assets available-for-sale: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) arising during the period | **(406)** | 333 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification adjustment | **37** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total unrealized gain (loss) on assets available-for-sale | **(369)** | 333 |
| &nbsp;&nbsp;&nbsp;Defined benefit plans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gain (loss) arising during the period | **2** | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange adjustment | **1** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost | **11** | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total defined benefit plans | **14** | 1 |
| &nbsp;&nbsp;&nbsp;Net unrealized gain (loss) on cash flow hedges | **(19)** | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss), net of tax *(a)* | **(462)** | 544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total comprehensive income | **1168** | 1766 |
| Net (income) loss attributable to noncontrolling interests | **2** | (2) |
| Other comprehensive (income) loss attributable to noncontrolling interests | **1** | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income applicable to shareholders of The Bank of New York Mellon Corporation | $**1171** | $1761 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income attributable to The Bank of New York Mellon Corporation shareholders was $(461) million for the quarter ended March 31, 2026 and $541 million for the quarter ended March 31, 2025.*

*See accompanying unaudited Notes to Consolidated Financial Statements.*

BNY 45

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**The Bank of New York Mellon Corporation (and its subsidiaries)**

**Consolidated Balance Sheet** (unaudited)

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | Dec. 31, 2025 |
| *(dollars in millions, except per share amounts)* | **March 31, 2026** | Dec. 31, 2025 |
| **Assets** |  |  |
| Cash and due from banks, net of allowance for credit losses of $20 and $19 | $**6390** | $5111 |
| Interest-bearing deposits with the Federal Reserve and other central banks | **170202** | 116009 |
| Interest-bearing deposits with banks, net of allowance for credit losses of $2 and $3 (includes restricted of $3,096 and $2,848) | **13544** | 10397 |
| Federal funds sold and securities purchased under resale agreements | **43660** | 44892 |
| Investment securities: |  |  |
| &nbsp;&nbsp;Held-to-maturity, at amortized cost, net of allowance for credit losses of less than $1 and less than $1 (fair value of $45,944 and $45,377) | **48830** | 48094 |
| &nbsp;&nbsp;Available-for-sale, at fair value (amortized cost of $107,595 and $102,422, net of allowance for credit losses of $— and $—) | **106785** | 102106 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investment securities | **155615** | 150200 |
| Trading assets | **16488** | 14276 |
| Loans | **101261** | 80615 |
| Allowance for credit losses | **(237)** | (245) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loans | **101024** | 80370 |
| Premises and equipment | **3796** | 3581 |
| Accrued interest receivable | **1402** | 1435 |
| Goodwill | **16734** | 16767 |
| Intangible assets | **2809** | 2822 |
| Other assets, net of allowance for credit losses on accounts receivable of $3 and $3 (includes $1,872 and $1,666, at fair value) | **29853** | 26440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $**561517** | $472300 |
| **Liabilities** |  |  |
| Deposits: |  |  |
| &nbsp;&nbsp;&nbsp;Noninterest-bearing deposits (principally U.S. offices) | $**127669** | $59979 |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits in U.S. offices | **184205** | 169125 |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits in non-U.S. offices | **105206** | 102790 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deposits | **417080** | 331894 |
| Federal funds purchased and securities sold under repurchase agreements | **19506** | 18992 |
| Trading liabilities | **4747** | 6135 |
| Payables to customers and broker-dealers | **24754** | 21872 |
| Commercial paper | **1002** | 2003 |
| Other borrowed funds | **175** | 422 |
| Accrued taxes and other expenses | **4449** | 5544 |
| Other liabilities (including allowance for credit losses on lending-related commitments of $85 and $74, also includes $600 and $617, at fair value) | **11903** | 8757 |
| Long-term debt | **32582** | 31873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | **516198** | 427492 |
| **Temporary equity** |  |  |
| Redeemable noncontrolling interests | **81** | 87 |
| **Permanent equity** |  |  |
| Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 53,826 and 48,826 shares | **5331** | 4836 |
| Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,423,366,413 and 1,416,966,905 shares | **14** | 14 |
| Additional paid-in capital | **30142** | 29907 |
| Retained earnings | **47582** | 46396 |
| Accumulated other comprehensive loss, net of tax | **(3496)** | (3035) |
| Less: Treasury stock of 736,987,368 and 728,730,568 common shares, at cost | **(34790)** | (33805) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total The Bank of New York Mellon Corporation shareholders' equity | **44783** | 44313 |
| Nonredeemable noncontrolling interests of consolidated investment management funds | **455** | 408 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total permanent equity | **45238** | 44721 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities, temporary equity and permanent equity | $**561517** | $472300 |

---

*See accompanying unaudited Notes to Consolidated Financial Statements.*

46 BNY

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**The Bank of New York Mellon Corporation (and its subsidiaries)**

**Consolidated Statement of Cash Flows** (unaudited)

---

| | | |
|:---|:---|:---|
| | Three months ended March 31, | Three months ended March 31, |
|<br>*(in millions)* | **2026** | 2025 |
| **Operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $**1630** | $1222 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (income) loss attributable to noncontrolling interests | **2** | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income applicable to shareholders of The Bank of New York Mellon Corporation | **1632** | 1220 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by (used for) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | **(7)** | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pension plan contributions | **(1)** | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **415** | 446 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax expense | **(6)** | 83 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment securities losses | **50** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in trading assets and liabilities | **(3570)** | 1709 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in accruals and other, net | **(1526)** | (3063) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used for) provided by operating activities | **(3013)** | 412 |
| **Investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing deposits with banks | **(3010)** | (458) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing deposits with the Federal Reserve and other central banks | **(54679)** | (11401) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold and securities purchased under resale agreements | **1223** | (164) |
| &nbsp;&nbsp;&nbsp;&nbsp;Held-to-maturity securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases | **(3043)** | (1262) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from paydowns and maturities | **2100** | 1597 |
| &nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases | **(11489)** | (12719) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales | **3031** | 2037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from paydowns and maturities | **3624** | 3632 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in loans | **(20675)** | 222 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of premises and equipment/capitalized software | **(617)** | (320) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | **(188)** | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used for) investing activities | **(83723)** | (18804) |
| **Financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | **86206** | 16589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal funds purchased and securities sold under repurchase agreements | **525** | 1565 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payables to customers and broker-dealers | **2882** | 2171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial paper | **(1001)** | 1361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other borrowed funds | **(232)** | (22) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net proceeds from the issuance of long-term debt | **1546** | 1247 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments, redemptions and repurchases of long-term debt | **(700)** | (1650) |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock | **5** | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock acquired | **(983)** | (746) |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of preferred stock | **495** | 988 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash dividends paid | **(434)** | (414) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | **(6)** | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | **88303** | 21100 |
| Effect of exchange rate changes on cash | **(40)** | 126 |
| **Change in cash and due from banks and restricted cash** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in cash and due from banks and restricted cash | **1527** | 2834 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks and restricted cash at beginning of period | **7959** | 5577 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks and restricted cash at end of period | $**9486** | $8411 |
| **Cash and due from banks and restricted cash** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks at end of period (unrestricted cash) | $**6390** | $5354 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash at end of period | **3096** | 3057 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks and restricted cash at end of period | $**9486** | $8411 |
| **Supplemental disclosures** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid | $**4361** | $4913 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid | **200** | 214 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes refunded | **125** | 9 |

---

*See accompanying unaudited Notes to Consolidated Financial Statements.*

BNY 47

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**The Bank of New York Mellon Corporation (and its subsidiaries)**

**Consolidated Statement of Changes in Equity** (unaudited)

---

| | | |
|:---|:---|:---|
| | Quarter ended | Quarter ended |
|<br>*(in millions, except per share amount)* | **March 31, 2026** | March 31, 2025 |
| **Preferred stock** |  |  |
| Balance at beginning of period | $**4836** | $4343 |
| Issuance | **495** | 988 |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at end of period | $**5331** | $5331 |
| **Common stock** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at beginning and end of period | $**14** | $14 |
| **Additional paid-in capital** |  |  |
| Balance at beginning of period | $**29907** | $29321 |
| Stock-based compensation | **226** | 204 |
| Common stock issued under employee benefit plans | **9** | 7 |
| Other net changes in noncontrolling interests | **—** | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at end of period | $**30142** | $29535 |
| **Retained earnings** |  |  |
| Balance at beginning of period | $**46396** | $42537 |
| Net income | **1632** | 1220 |
| Common stock dividends ($0.53 and $0.47 per share) *(a)* | **(376)** | (343) |
| Preferred stock dividends | **(70)** | (71) |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at end of period | $**47582** | $43343 |
| **Accumulated other comprehensive income (loss), net of tax** |  |  |
| Balance at beginning of period | $**(3035)** | $(4656) |
| Other comprehensive income (loss) | **(461)** | 541 |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at end of period | $**(3496)** | $(4115) |
| **Treasury stock** |  |  |
| Balance at beginning of period | $**(33805)** | $(30241) |
| Repurchase of common stock | **(983)** | (746) |
| Excise tax on share repurchases | **(2)** | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at end of period | $**(34790)** | $(30989) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total The Bank of New York Mellon Corporation shareholders' equity** *(b)* | $**44783** | $43119 |
| **Nonredeemable noncontrolling interests of consolidated investment management funds** |  |  |
| Balance at beginning of period | $**408** | $359 |
| Other net changes in noncontrolling interests | **49** | 49 |
| Net income | **(2)** | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at end of period | $**455** | $410 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total permanent equity** *(b)* | $**45238** | $43529 |
| **Redeemable noncontrolling interests/temporary equity** |  |  |
| Balance at beginning of period | $**87** | $87 |
| Other net changes in noncontrolling interests | **(5)** | 4 |
| Other comprehensive income (loss) | **(1)** | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at end of period | $**81** | $94 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Includes dividend equivalents on share-based awards.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Includes total The Bank of New York Mellon Corporation common shareholders' equity of $39,452 million at March 31, 2026 and $37,788 million at March 31, 2025.*

*See accompanying unaudited Notes to Consolidated Financial Statements.*

48 BNY

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**Notes to Consolidated Financial Statements**

**Note 1–Basis of presentation**

In this Quarterly Report on Form 10-Q, references to "our," "we," "us," "BNY," the "Company" and similar terms refer to The Bank of New York Mellon Corporation and its consolidated subsidiaries. The term "Parent" refers to The Bank of New York Mellon Corporation but not to its subsidiaries.

*Basis of presentation*

The accounting and financial reporting policies of BNY, a global financial services company, conform to U.S. generally accepted accounting principles ("GAAP") and prevailing industry practices. For information on our significant accounting and reporting policies, see Note 1 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended Dec. 31, 2025 (the "2025 Annual Report").

The accompanying consolidated financial statements are unaudited. In the opinion of management, all adjustments necessary, consisting of normal recurring adjustments, for a fair presentation of financial position, results of operations and cash flows for the periods presented have been made. These financial statements should be read in conjunction with our Consolidated Financial Statements included in our 2025 Annual Report.

*Use of estimates*

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates based upon assumptions about future economic and market conditions which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial condition.

**Note 2–Investment securities**

The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of investment securities at March 31, 2026 and Dec. 31, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment securities at March 31, 2026** |  | Gross<br>unrealized | Gross<br>unrealized | Fair<br>value |
| **Investment securities at March 31, 2026** | Amortized cost | Gross<br>unrealized | Gross<br>unrealized | Fair<br>value |
| *(in millions)* | Amortized cost | Gains | Losses | Fair<br>value |
| **Available-for-sale:** |  |  |  |  |
| U.S. Treasury | $28491 | $33 | $79 | $28445 |
| Non-U.S. government *(a)* | 28311 | 34 | 244 | 28101 |
| Agency residential mortgage-backed securities ("RMBS") | 23730 | 102 | 325 | 23507 |
| Foreign covered bonds | 8066 | 16 | 66 | 8016 |
| Agency commercial mortgage-backed securities ("MBS") | 6770 | 11 | 120 | 6661 |
| Collateralized loan obligations ("CLOs") | 6551 | 1 | 11 | 6541 |
| Non-agency commercial MBS | 2180 |  | 86 | 2094 |
| U.S. government agencies | 1540 | 5 | 1 | 1544 |
| Non-agency RMBS | 1647 | 1 | 119 | 1529 |
| Other asset-backed securities ("ABS") | 367 | 1 | 21 | 347 |
| &nbsp;&nbsp;&nbsp;Total available-for-sale securities excluding portfolio level basis adjustments | **107653** | **204** | **1072** | **106785** |
| Portfolio level basis adjustments *(b)* | (58) |  | (58) |  |
| &nbsp;&nbsp;&nbsp;Total available-for-sale securities | $**107595** | $**204** | $**1014** | $**106785** |
| **Held-to-maturity:** |  |  |  |  |
| Agency RMBS | $27974 | $23 | $2401 | $25596 |
| U.S. Treasury | 7499 | 2 | 163 | 7338 |
| Non-U.S. government *(a)* | 5384 | 1 | 51 | 5334 |
| Agency commercial MBS | 2833 | 1 | 115 | 2719 |
| U.S. government agencies | 2636 |  | 177 | 2459 |
| CLOs | 1798 | 1 | 3 | 1796 |
| Foreign covered bonds | 695 |  | 4 | 691 |
| Other debt securities | 11 |  |  | 11 |
| &nbsp;&nbsp;&nbsp;Total held-to-maturity securities | $**48830** | $**28** | $**2914** | $**45944** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investment securities | $**156425** | $**232** | $**3928** | $**152729** |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Includes supranational securities.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Represents fair value hedge basis adjustments related to active portfolio layer method hedges of available-for-sale securities, which are not allocated to individual securities in the portfolio. See Note 14 for additional information on our hedging activities.*

BNY 49

------

**Notes to Consolidated Financial Statements** (continued)<br>

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investment securities at Dec. 31, 2025** |  | Gross<br>unrealized | Gross<br>unrealized |  |
| **Investment securities at Dec. 31, 2025** | Amortized cost | Gross<br>unrealized | Gross<br>unrealized | Fair<br>value |
| *(in millions)* | Amortized cost | Gains | Losses | Fair<br>value |
| **Available-for-sale:** |  |  |  |  |
| Non-U.S. government *(a)* | $28593 | $122 | $147 | $28568 |
| U.S. Treasury | 25621 | 115 | 25 | 25711 |
| Agency RMBS | 21261 | 202 | 243 | 21220 |
| Foreign covered bonds | 8088 | 37 | 57 | 8068 |
| Agency commercial MBS | 6891 | 12 | 123 | 6780 |
| CLOs | 6117 | 4 | 3 | 6118 |
| Non-agency commercial MBS | 2280 | 1 | 85 | 2196 |
| U.S. government agencies | 1542 | 12 |  | 1554 |
| Non-agency RMBS | 1631 | 2 | 118 | 1515 |
| Other ABS | 397 | 1 | 22 | 376 |
| &nbsp;&nbsp;&nbsp;Total available-for-sale securities excluding portfolio level basis adjustments | 102421 | 508 | 823 | 102106 |
| Portfolio level basis adjustments *(b)* | 1 | (1) |  |  |
| &nbsp;&nbsp;&nbsp;Total available-for-sale securities | $102422 | $507 | $823 | $102106 |
| **Held-to-maturity:** |  |  |  |  |
| Agency RMBS | $26432 | $48 | $2317 | $24163 |
| U.S. Treasury | 7830 | 18 | 173 | 7675 |
| Non-U.S. government *(a)* | 5654 | 22 | 20 | 5656 |
| Agency commercial MBS | 2937 | 3 | 120 | 2820 |
| U.S. government agencies | 2653 |  | 178 | 2475 |
| CLOs | 1841 | 2 | 3 | 1840 |
| Foreign covered bonds | 736 | 2 |  | 738 |
| Other debt securities | 11 |  | 1 | 10 |
| &nbsp;&nbsp;&nbsp;Total held-to-maturity securities | $48094 | $95 | $2812 | $45377 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investment securities | $150516 | $602 | $3635 | $147483 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Includes supranational securities.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Represents fair value hedge basis adjustments related to active portfolio layer method hedges of available-for-sale securities, which are not allocated to individual securities in the portfolio. See Note 14 for additional information on our hedging activities.*

The following table presents the realized gains and losses, on a gross basis.

---

| | | |
|:---|:---|:---|
| **Net investment securities gains (losses)** | **Net investment securities gains (losses)** | |
| *(in millions)* | **1Q26** |<br>1Q25 |
| Realized gross gains | $**5** | $4 |
| Realized gross losses | **(55)** | (4) |
| &nbsp;&nbsp;&nbsp;Total net investment securities gains (losses) | $**(50)** | $— |

---

The following table presents pre-tax net investment securities gains (losses) by type.

---

| | | |
|:---|:---|:---|
| **Net investment securities gains (losses)** | **Net investment securities gains (losses)** | |
| *(in millions)* | **1Q26** |<br>1Q25 |
| Non-U.S. government | $**(21)** | $— |
| Foreign covered bonds | **(11)** |  |
| Other | **(18)** |  |
| &nbsp;&nbsp;&nbsp;Total net investment securities gains (losses) | $**(50)** | $— |

---

*Allowance for credit losses – Investment securities*

The amortized cost of available-for-sale and held-to-maturity securities is net of the allowance for credit losses. The allowance for credit losses related to investment securities was less than $1 million at March 31, 2026 and Dec. 31, 2025 and related to other debt securities.

*Credit quality indicators – Investment securities*

At March 31, 2026, the gross unrealized losses on the investment securities portfolio were primarily attributable to an increase in interest rates from the date of purchase, and for certain securities that were transferred from available-for-sale to held-to-maturity, an increase in interest rates through the date they were transferred. As the transfers created a new cost basis for the securities, if these securities have experienced unrealized losses since the date of transfer, the corresponding unrealized losses would be reflected in the held-to-maturity securities portfolio in the following tables.

50 BNY

------

**Notes to Consolidated Financial Statements** (continued)<br>

The following tables show the aggregate fair value of available-for-sale securities with a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or more without an allowance for credit losses.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Available-for-sale securities in an unrealized loss position without an allowance for credit losses at March 31, 2026** | Less than 12 months | Less than 12 months | 12 months or more | 12 months or more | Total | Total |
| **Available-for-sale securities in an unrealized loss position without an allowance for credit losses at March 31, 2026** | Fair<br>value | Unrealized<br>losses | Fair<br>value | Unrealized<br>losses | Fair<br>value | Unrealized<br>losses |
| *(in millions)* | Fair<br>value | Unrealized<br>losses | Fair<br>value | Unrealized<br>losses | Fair<br>value | Unrealized<br>losses |
| Non-U.S. government *(a)* | $15329 | $139 | $2360 | $105 | $17689 | $244 |
| Agency RMBS | 10979 | 109 | 5290 | 216 | 16269 | 325 |
| U.S. Treasury | 5917 | 21 | 9770 | 58 | 15687 | 79 |
| CLOs | 4917 | 10 | 214 | 1 | 5131 | 11 |
| Agency commercial MBS | 1007 | 9 | 3657 | 111 | 4664 | 120 |
| Foreign covered bonds | 2482 | 27 | 810 | 39 | 3292 | 66 |
| Non-agency commercial MBS | 133 |  | 1786 | 86 | 1919 | 86 |
| Non-agency RMBS | 297 |  | 845 | 119 | 1142 | 119 |
| U.S. government agencies | 213 | 1 | 78 |  | 291 | 1 |
| Other ABS | 18 |  | 272 | 21 | 290 | 21 |
| &nbsp;&nbsp;&nbsp;Total securities available-for-sale | $**41292** | $**316** | $**25082** | $**756** | $**66374** | $**1072** |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Includes supranational securities.* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Available-for-sale securities in an unrealized loss position without an allowance for credit losses at Dec. 31, 2025** | Less than 12 months | Less than 12 months | 12 months or more | 12 months or more | Total | Total |
| **Available-for-sale securities in an unrealized loss position without an allowance for credit losses at Dec. 31, 2025** | Fair<br>value | Unrealized<br>losses | Fair<br>value | Unrealized<br>losses | Fair<br>value | Unrealized<br>losses |
| *(in millions)* | Fair<br>value | Unrealized<br>losses | Fair<br>value | Unrealized<br>losses | Fair<br>value | Unrealized<br>losses |
| Agency RMBS | $3614 | $26 | $5818 | $217 | $9432 | $243 |
| Non-U.S. government *(a)* | 4120 | 17 | 3195 | 130 | 7315 | 147 |
| Agency commercial MBS | 420 | 1 | 4303 | 122 | 4723 | 123 |
| Foreign covered bonds | 1191 | 5 | 1338 | 52 | 2529 | 57 |
| CLOs | 2280 | 3 |  |  | 2280 | 3 |
| U.S. Treasury | 378 | 1 | 1671 | 24 | 2049 | 25 |
| Non-agency commercial MBS | 78 |  | 1881 | 85 | 1959 | 85 |
| Non-agency RMBS | 267 | 2 | 807 | 116 | 1074 | 118 |
| Other ABS | 14 |  | 294 | 22 | 308 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total securities available-for-sale | $12362 | $55 | $19307 | $768 | $31669 | $823 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Includes supranational securities.*

The following tables show the credit quality of the held-to-maturity securities. We have included certain credit ratings information because the information can indicate the degree of credit risk to which we are exposed. Significant changes in ratings classifications could indicate increased credit risk for us and could be accompanied by an increase in the allowance for credit losses and/or a reduction in the fair value of our securities portfolio.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Held-to-maturity securities portfolio at March 31, 2026** | **Held-to-maturity securities portfolio at March 31, 2026** |  | Ratings *(a)* | Ratings *(a)* | Ratings *(a)* | Ratings *(a)* | Ratings *(a)* |
|  |  | Net unrealized gain (loss) |  |  |  | BB+<br>and<br>lower |  |
| *(dollars in millions)* | Amortized <br>cost | Net unrealized gain (loss) | AAA/<br>AA- | A+/<br>A- | BBB+/<br>BBB- | BB+<br>and<br>lower | Not<br>rated |
| Agency RMBS | $27974 | $(2378) | 100% | —% | —% | —% | —% |
| U.S. Treasury | 7499 | (161) | 100 |  |  |  |  |
| Non-U.S. government *(b)(c)* | 5384 | (50) | 88 | 12 |  |  |  |
| Agency commercial MBS | 2833 | (114) | 100 |  |  |  |  |
| U.S. government agencies | 2636 | (177) | 100 |  |  |  |  |
| CLOs | 1798 | (2) | 100 |  |  |  |  |
| Foreign covered bonds | 695 | (4) | 100 |  |  |  |  |
| Other debt securities | 11 |  |  |  |  |  | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total held-to-maturity securities | $**48830** | $**(2886)** | **98%** | **2%** | **—%** | **—%** | **—%** |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Represents ratings by Standard & Poor's ("S&P") or the equivalent.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Includes supranational securities.*

*(c)&nbsp;&nbsp;&nbsp;&nbsp;Primarily consists of exposure to the UK, the Netherlands, France, Germany and Austria.* 

BNY 51

------

**Notes to Consolidated Financial Statements** (continued)<br>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Held-to-maturity securities portfolio at Dec. 31, 2025** | **Held-to-maturity securities portfolio at Dec. 31, 2025** |  | Ratings *(a)* | Ratings *(a)* | Ratings *(a)* | Ratings *(a)* | Ratings *(a)* |
|  |  | Net unrealized gain (loss) |  |  |  | BB+<br>and<br>lower |  |
| *(dollars in millions)* | Amortized <br>cost | Net unrealized gain (loss) | AAA/<br>AA- | A+/<br>A- | BBB+/<br>BBB- | BB+<br>and<br>lower | Not<br>rated |
| Agency RMBS | $26432 | $(2269) | 100% | —% | —% | —% | —% |
| U.S. Treasury | 7830 | (155) | 100 |  |  |  |  |
| Non-U.S. government *(b)(c)* | 5654 | 2 | 86 | 14 |  |  |  |
| Agency commercial MBS | 2937 | (117) | 100 |  |  |  |  |
| U.S. government agencies | 2653 | (178) | 100 |  |  |  |  |
| CLOs | 1841 | (1) | 100 |  |  |  |  |
| Foreign covered bonds | 736 | 2 | 100 |  |  |  |  |
| Other debt securities | 11 | (1) |  |  |  |  | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total held-to-maturity securities | $48094 | $(2717) | 98% | 2% | —% | —% | —% |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Represents ratings by S&P or the equivalent.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Includes supranational securities.*

*(c)&nbsp;&nbsp;&nbsp;&nbsp;Primarily consists of exposure to the UK, the Netherlands and France.*

*Maturity distribution*

The following table shows the maturity distribution by carrying amount and yield (on a tax equivalent basis) of our investment securities portfolio.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Maturity distribution and yields on investment securities at March 31, 2026** | | | | | | | | | | |
| **Maturity distribution and yields on investment securities at March 31, 2026** | Within 1 year | Within 1 year | 1-5 years | 1-5 years | 5-10 years | 5-10 years | After 10 years | After 10 years | Total | Total |
| *(dollars in millions)* | Amount | Yield *(a)* | Amount | Yield *(a)* | Amount | Yield *(a)* | Amount | Yield *(a)* | Amount | Yield *(a)* |
| **Available-for-sale:** |  |  |  |  |  |  |  |  |  |  |
| U.S. Treasury | $1877 | 2.49% | $24363 | 3.27% | $301 | 4.22% | $1904 | 2.94% | $**28445** | **3.21%** |
| Non-U.S. government *(b)* | 4120 | 3.68 | 20177 | 3.29 | 3626 | 3.33 | 178 | 3.26 | **28101** | **3.35** |
| Foreign covered bonds | 1806 | 3.60 | 5601 | 3.20 | 609 | 3.16 |  |  | **8016** | **3.28** |
| U.S. government agencies | 80 | 3.76 | 996 | 3.42 | 468 | 2.57 |  |  | **1544** | **3.18** |
| Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Agency RMBS |  |  |  |  |  |  |  |  | **23507** | **3.97** |
| &nbsp;&nbsp;Agency commercial MBS |  |  |  |  |  |  |  |  | **6661** | **3.12** |
| &nbsp;&nbsp;Non-agency commercial MBS |  |  |  |  |  |  |  |  | **2094** | **2.80** |
| &nbsp;&nbsp;Non-agency RMBS |  |  |  |  |  |  |  |  | **1529** | **3.41** |
| CLOs |  |  |  |  |  |  |  |  | **6541** | **4.82** |
| Other ABS |  |  |  |  |  |  |  |  | **347** | **2.43** |
| &nbsp;&nbsp;&nbsp;Total securities available-for-sale | $7883 | 3.38% | $51137 | 3.27% | $5004 | 3.29% | $2082 | 2.97% | $**106785** | **3.50%** |
| **Held-to-maturity:** |  |  |  |  |  |  |  |  |  |  |
| U.S. Treasury | $3606 | 1.28% | $3893 | 1.17% | $— | —% | $— | —% | $**7499** | **1.22%** |
| Non-U.S. government *(b)* | 1078 | 2.48 | 4272 | 2.70 | 34 | 2.65 |  |  | **5384** | **2.65** |
| U.S. government agencies | 445 | 1.24 | 1885 | 1.57 | 280 | 1.89 | 26 | 2.22 | **2636** | **1.56** |
| Foreign covered bonds | 221 | 2.52 | 474 | 2.59 |  |  |  |  | **695** | **2.57** |
| Other debt securities |  |  |  |  | 11 | 4.75 |  |  | **11** | **4.75** |
| Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Agency RMBS |  |  |  |  |  |  |  |  | **27974** | **2.61** |
| &nbsp;&nbsp;Agency commercial MBS |  |  |  |  |  |  |  |  | **2833** | **2.71** |
| CLOs |  |  |  |  |  |  |  |  | **1798** | **4.99** |
| &nbsp;&nbsp;&nbsp;Total securities held-to-maturity | $5350 | 1.57% | $10524 | 1.93% | $325 | 2.07% | $26 | 2.22% | $**48830** | **2.44%** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investment securities | $13233 | 2.65% | $61661 | 3.04% | $5329 | 3.22% | $2108 | 2.96% | $**155615** | **3.17%** |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Yields are based upon the amortized cost of securities and consider the contractual coupon, amortization of premiums and accretion of discounts, excluding the effect of related hedging derivatives.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Includes supranational securities.*

52 BNY

------

**Notes to Consolidated Financial Statements** (continued)<br>

*Pledged assets*

At March 31, 2026, BNY had pledged assets of $148 billion, including $93 billion pledged as collateral for potential borrowings at the Federal Reserve Discount Window and $10 billion pledged as collateral for borrowing at the Federal Home Loan Bank. The components of the assets pledged at March 31, 2026 included $122 billion of securities, $19 billion of loans, $6 billion of trading assets and $1 billion of interest-bearing deposits with banks.

If there has been no borrowing at the Federal Reserve Discount Window, the Federal Reserve generally allows banks to freely move assets in and out of their pledged assets account to sell or repledge the assets for other purposes. BNY regularly moves assets in and out of its pledged assets account at the Federal Reserve as there have been no borrowings.

At Dec. 31, 2025, BNY had pledged assets of $147 billion, including $90 billion pledged as collateral for potential borrowing at the Federal Reserve Discount Window and $10 billion pledged as collateral for borrowing at the Federal Home Loan Bank. The components of the assets pledged at Dec. 31, 2025 included $122 billion of securities, $17 billion of loans, $7 billion of trading assets and $1 billion of interest-bearing deposits with banks.

At March 31, 2026 and Dec. 31, 2025, pledged assets included $22 billion and $24 billion, respectively, for which the recipients were permitted to sell or repledge the assets delivered.

We also obtain securities as collateral, including receipts under resale agreements, securities borrowed, derivative contracts and custody agreements, on terms which permit us to sell or repledge the securities to others. At March 31, 2026 and Dec. 31, 2025, the market value of the securities received that can be sold or repledged was $364 billion and $349 billion, respectively. We routinely sell or repledge these securities through delivery to third parties. As of March 31, 2026 and Dec. 31, 2025, the market value of securities collateral sold or repledged was $309 billion and $306 billion, respectively.

*Restricted cash and securities*

Cash and securities may be segregated under federal and other regulations or requirements. At March 31, 2026 and Dec. 31, 2025, cash segregated under federal and other regulations or requirements was $3 billion and $3 billion, respectively. Restricted cash is primarily included in interest-bearing deposits with banks on the consolidated balance sheet. Securities segregated under federal and other regulations or requirements were $2 billion at March 31, 2026 and $3 billion at Dec. 31, 2025. Restricted securities were sourced from securities purchased under resale agreements and securities borrowings and are included in federal funds sold and securities purchased under resale agreements on the consolidated balance sheet.

**Note 3–Loans and asset quality**

*Loans*

The table below provides the details of our loan portfolio.

---

| | | |
|:---|:---|:---|
| **Loans** | **March 31, 2026** | Dec. 31, 2025 |
| *(in millions)* | **March 31, 2026** | Dec. 31, 2025 |
| Commercial | $**1444** | $1748 |
| Commercial real estate | **6838** | 6710 |
| Financial institutions *(a)* | **25456** | 13309 |
| Wealth management loans | **9584** | 9520 |
| Wealth management mortgages | **8789** | 8586 |
| Other residential mortgages | **1433** | 1820 |
| Capital call financing | **5453** | 5336 |
| Other | **4597** | 4533 |
| Overdrafts *(a)* | **8604** | 2800 |
| Margin loans | **29063** | 26253 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total loans *(b)* | $**101261** | $80615 |

---

*(a)*&nbsp;&nbsp;&nbsp;&nbsp;*The balances at March 31, 2026 were temporarily elevated reflecting a single-day increase in overnight loans as a result of delayed processing of certain payments.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Net of unearned income of $75 million at March 31, 2026 and $86 million at Dec. 31, 2025, primarily related to other loans.*

We disclose information related to our loans and asset quality by the class of the financing receivable in the following tables.

BNY 53

------

**Notes to Consolidated Financial Statements** (continued)<br>

*Allowance for credit losses*

Activity in the allowance for credit losses on loans and lending-related commitments is presented below. This does not include activity in the allowance for credit losses related to other financial instruments, including cash and due from banks, interest-bearing deposits with banks, federal funds sold and securities purchased under resale agreements, held-to-maturity securities, available-for-sale securities and accounts receivable.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Allowance for credit losses activity for the quarter ended March 31, 2026** | **Allowance for credit losses activity for the quarter ended March 31, 2026** | **Allowance for credit losses activity for the quarter ended March 31, 2026** | **Allowance for credit losses activity for the quarter ended March 31, 2026** | Wealth management loans | Wealth management mortgages | Other residential mortgages | Capital call financing |  |
| *(in millions)* | Commercial | Commercial<br>real estate | Financial<br>institutions | Wealth management loans | Wealth management mortgages | Other residential mortgages | Capital call financing | Total |
| Beginning balance | $10 | $262 | $25 | $5 | $7 | $2 | $8 | $319 |
| &nbsp;&nbsp;Charge-offs |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Recoveries |  | 11 |  |  |  |  |  | 11 |
| &nbsp;&nbsp;&nbsp;Net (charge-offs) recoveries |  | 11 |  |  |  |  |  | 11 |
| &nbsp;&nbsp;Provision *(a)* | 2 | (25) | 7 | 3 | 1 | 2 | 2 | (8) |
| Ending balance | $**12** | $**248** | $**32** | $**8** | $**8** | $**4** | $**10** | $**322** |
| Allowance for: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Loan losses | $2 | $195 | $14 | $6 | $8 | $4 | $8 | $237 |
| &nbsp;&nbsp;Lending-related commitments | 10 | 53 | 18 | 2 |  |  | 2 | 85 |
| Individually evaluated for impairment: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Loan balance *(b)* | $— | $32 | $— | $— | $7 | $4 | $— | $43 |
| &nbsp;&nbsp;Allowance for loan losses |  | 12 |  |  |  |  |  | 12 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Does not include the provision for credit losses related to other financial instruments of $1 million for the quarter ended March 31, 2026.* 

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Includes collateral-dependent loans of $43 million with $38 million of collateral value.*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Allowance for credit losses activity for the quarter ended March 31, 2025** | **Allowance for credit losses activity for the quarter ended March 31, 2025** | **Allowance for credit losses activity for the quarter ended March 31, 2025** | **Allowance for credit losses activity for the quarter ended March 31, 2025** | Wealth management loans | Wealth management mortgages | Other<br>residential<br>mortgages | Capital call financing | Total |
| *(in millions)* | Commercial | Commercial<br>real estate | Financial<br>institutions | Wealth management loans | Wealth management mortgages | Other<br>residential<br>mortgages | Capital call financing | Total |
| Beginning balance | $20 | $315 | $19 | $1 | $6 | $2 | $3 | $366 |
| &nbsp;&nbsp;Charge-offs |  | (10) |  |  |  |  |  | (10) |
| &nbsp;&nbsp;Recoveries |  |  |  |  |  | 1 |  | 1 |
| &nbsp;&nbsp;&nbsp;Net (charge-offs) recoveries |  | (10) |  |  |  | 1 |  | (9) |
| &nbsp;&nbsp;Provision *(a)* | (5) | 21 | (3) |  |  | (1) | 1 | 13 |
| Ending balance | $15 | $326 | $16 | $1 | $6 | $2 | $4 | $370 |
| Allowance for: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Loan losses | $5 | $271 | $7 | $1 | $6 | $2 | $3 | $295 |
| &nbsp;&nbsp;Lending-related commitments | 10 | 55 | 9 |  |  |  | 1 | 75 |
| Individually evaluated for impairment: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Loan balance *(b)* | $— | $275 | $— | $— | $3 | $1 | $— | $279 |
| &nbsp;&nbsp;Allowance for loan losses |  | 75 |  |  |  |  |  | 75 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Does not include the provision for credit losses related to other financial instruments of $5 million for the quarter ended March 31, 2025.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Includes collateral-dependent loans of $279 million with $256 million of collateral value.*

54 BNY

------

**Notes to Consolidated Financial Statements** (continued)<br>

*Nonperforming assets*

The table below presents our nonperforming assets.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Nonperforming assets** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 |
|  | Recorded investment | Recorded investment | Recorded investment | Recorded investment | Recorded investment | Recorded investment |
|  | With an<br>allowance | Without an allowance |  | With an<br>allowance | Without an allowance |  |
| *(in millions)* | With an<br>allowance | Without an allowance | Total | With an<br>allowance | Without an allowance | Total |
| Nonperforming loans: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial real estate | $**32** | $**—** | $**32** | $106 | $— | $106 |
| &nbsp;&nbsp;&nbsp;Other residential mortgages | **14** | **4** | **18** | 16 | 1 | 17 |
| &nbsp;&nbsp;&nbsp;Wealth management mortgages | **9** | **7** | **16** | 9 | 8 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming loans | **55** | **11** | **66** | 131 | 9 | 140 |
| Other assets owned | **—** | **3** | **3** |  | 3 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming assets | $**55** | $**14** | $**69** | $131 | $12 | $143 |

---

*Past due loans*

The table below presents our past due loans.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Past due loans and still accruing interest** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 |
| **Past due loans and still accruing interest** | Days past due | Days past due | Days past due | Total<br>past due | Days past due | Days past due | Days past due | Total<br>past due |
| *(in millions)* | 30-59 | 60-89 | ≥90 | Total<br>past due | 30-59 | 60-89 | ≥90 | Total<br>past due |
| Wealth management loans | $**70** | $**2** | $**—** | $**72** | $63 | $8 | $— | $71 |
| Commercial real estate | **42** | **—** | **—** | **42** | 7 | 3 |  | 10 |
| Wealth management mortgages | **28** | **—** | **—** | **28** | 49 | 2 |  | 51 |
| Other residential mortgages | **8** | **1** | **—** | **9** | 23 | 4 |  | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total past due loans | $**148** | $**3** | $**—** | $**151** | $142 | $17 | $— | $159 |

---

*Loan modifications*

Modified loans are evaluated to determine whether a modification or restructuring with a borrower experiencing financial difficulty results in principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension. The modification could result in a new loan or a continuation of the existing loan.

There were no loan modifications in the first quarter of 2026. At March 31, 2026, none of the loans that were modified in the previous 12 months are past due by more than 90 days.

In the fourth quarter of 2025, we modified one commercial real estate loan, with a recorded investment of $42 million by extending the maturity date. Also in the fourth quarter of 2025, we modified one residential mortgage loan, with an aggregate recorded investment of less than $1 million, by providing payment modifications.

In the first quarter of 2025, we modified one wealth management mortgage loan, with a recorded investment of $1 million, by providing payment modifications.

BNY 55

------

**Notes to Consolidated Financial Statements** (continued)<br>

*Credit quality indicators*

Our credit strategy is to focus on investment-grade clients that are active users of our non-credit services. Each customer is assigned an internal credit rating, which is mapped to an external rating agency grade equivalent, if possible, based upon a number of dimensions, which are continually evaluated and may change over time.

The tables below provide information about the credit profile of the loan portfolio by the period of origination.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit profile of the loan portfolio** | **Credit profile of the loan portfolio** | **Credit profile of the loan portfolio** | **Credit profile of the loan portfolio** | | | | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  |  |  |  |  |  |  | Revolving loans | Revolving loans |  |  |
|  | Originated, at amortized cost | Originated, at amortized cost | Originated, at amortized cost | Originated, at amortized cost | Originated, at amortized cost | Originated, at amortized cost | Amortized cost | Converted to term loans – Amortized cost |  | Accrued<br>interest<br>receivable |
| *(in millions)* | **1Q26** | 2025 | 2024 | 2023 | 2022 | Prior to 2022 | Amortized cost | Converted to term loans – Amortized cost | Total *(a)* | Accrued<br>interest<br>receivable |
| Commercial: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment grade | $**3** | $50 | $54 | $32 | $16 | $152 | $**1051** | $**—** | $**1358** |  |
| &nbsp;&nbsp;&nbsp;Non-investment grade | **14** |  | 11 |  |  |  | **61** | **—** | **86** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total commercial | **17** | 50 | 65 | 32 | 16 | 152 | **1112** | **—** | **1444** | $**1** |
| Commercial real estate: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment grade | **381** | 915 | 413 | 462 | 564 | 1572 | **191** | **—** | **4498** |  |
| &nbsp;&nbsp;&nbsp;Non-investment grade | **70** | 305 | 235 | 183 | 687 | 776 | **84** | **—** | **2340** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total commercial real estate | **451** | 1220 | 648 | 645 | 1251 | 2348 | **275** | **—** | **6838** | **26** |
| Financial institutions: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment grade | **208** | 520 | 206 | 75 | 10 |  | **22746** | **—** | **23765** |  |
| &nbsp;&nbsp;&nbsp;Non-investment grade | **28** | 84 |  |  |  |  | **1579** | **—** | **1691** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total financial institutions | **236** | 604 | 206 | 75 | 10 |  | **24325** | **—** | **25456** | **97** |
| Wealth management loans: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment grade | **53** | 11 |  | 28 | 7 | 140 | **8980** | **175** | **9394** |  |
| &nbsp;&nbsp;&nbsp;Non-investment grade | **—** |  |  |  | 19 |  | **171** | **—** | **190** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total wealth management loans | **53** | 11 |  | 28 | 26 | 140 | **9151** | **175** | **9584** | **48** |
| Wealth management mortgages | **125** | 614 | 448 | 701 | 1468 | 5413 | **20** | **—** | **8789** | **24** |
| Other residential mortgages | **5** | 383 | 102 | 137 | 478 | 328 | **—** | **—** | **1433** | **6** |
| Capital call financing | **—** | 230 | 130 |  |  |  | **5093** | **—** | **5453** | **20** |
| Other loans | **—** |  |  |  |  | 91 | **4506** | **—** | **4597** | **8** |
| Margin loans | **14070** |  |  |  |  |  | **14993** | **—** | **29063** | **44** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans *(b)* | $**14957** | $3112 | $1599 | $1618 | $3249 | $8472 | $**59475** | $**175** | $**92657** | $**274** |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Excludes overdrafts of $8,604 million. Overdrafts occur on a daily basis primarily in the custody and securities clearance business and are generally repaid within two business days.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;There were no gross write-offs in the first three months of 2026.*

56 BNY

------

**Notes to Consolidated Financial Statements** (continued)<br>

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit profile of the loan portfolio** | **Credit profile of the loan portfolio** | **Credit profile of the loan portfolio** |  |  |  |  | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 |
|  |  |  |  |  |  |  | Revolving loans | Revolving loans |  |  |
|  | Originated, at amortized cost | Originated, at amortized cost | Originated, at amortized cost | Originated, at amortized cost | Originated, at amortized cost | Originated, at amortized cost | Amortized cost | Converted to term loans – Amortized cost |  | Accrued<br>interest<br>receivable |
| *(in millions)* | 2025 | 2024 | 2023 | 2022 | 2021 | Prior to 2021 | Amortized cost | Converted to term loans – Amortized cost | Total *(a)* | Accrued<br>interest<br>receivable |
| Commercial: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment grade | $55 | $55 | $45 | $16 | $49 | $104 | $1357 | $— | $1681 |  |
| &nbsp;&nbsp;&nbsp;Non-investment grade |  | 11 |  |  |  |  | 56 |  | 67 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total commercial | 55 | 66 | 45 | 16 | 49 | 104 | 1413 |  | 1748 | $1 |
| Commercial real estate: *(b)* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment grade | 989 | 412 | 499 | 617 | 343 | 1280 | 156 |  | 4296 |  |
| &nbsp;&nbsp;&nbsp;Non-investment grade | 262 | 287 | 166 | 707 | 219 | 720 | 53 |  | 2414 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total commercial real estate | 1251 | 699 | 665 | 1324 | 562 | 2000 | 209 |  | 6710 | 25 |
| Financial institutions: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment grade | 686 | 373 | 75 | 10 | 24 |  | 10552 |  | 11720 |  |
| &nbsp;&nbsp;&nbsp;Non-investment grade | 119 |  |  |  |  |  | 1470 |  | 1589 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total financial institutions | 805 | 373 | 75 | 10 | 24 |  | 12022 |  | 13309 | 112 |
| Wealth management loans: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment grade | 14 |  | 28 | 27 | 52 | 93 | 9003 | 175 | 9392 |  |
| &nbsp;&nbsp;&nbsp;Non-investment grade |  |  |  |  |  |  | 128 |  | 128 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total wealth management loans | 14 |  | 28 | 27 | 52 | 93 | 9131 | 175 | 9520 | 49 |
| Wealth management mortgages *(b)* | 633 | 270 | 647 | 1486 | 1724 | 3812 | 14 |  | 8586 | 24 |
| Other residential mortgages *(b)* | 416 | 324 | 242 | 492 | 171 | 175 |  |  | 1820 | 6 |
| Capital call financing | 230 | 130 |  |  |  |  | 4976 |  | 5336 | 24 |
| Other loans |  |  |  |  | 7 | 85 | 4441 |  | 4533 | 8 |
| Margin loans | 12457 |  |  |  |  |  | 13796 |  | 26253 | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans | $15861 | $1862 | $1702 | $3355 | $2589 | $6269 | $46002 | $175 | $77815 | $286 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Excludes overdrafts of $2,800 million. Overdrafts occur on a daily basis primarily in the custody and securities clearance business and are generally repaid within two business days.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;The gross write-offs related to commercial real estate loans were $25 million, wealth management mortgage loans were $1 million and other residential mortgage loans were less than $1 million in 2025.*

*Commercial loans*

The commercial loan portfolio is divided into investment grade and non-investment grade categories based on the assigned internal credit ratings, which are generally consistent with those of the public rating agencies. Customers with ratings consistent with BBB- (S&P)/Baa3 (Moody's) or better are considered to be investment grade. Those clients with ratings lower than this threshold are considered to be non-investment grade.

*Commercial real estate*

Our income-producing commercial real estate facilities are focused on experienced owners and are structured with moderate leverage based on existing cash flows. Our commercial real estate lending activities also include construction and renovation facilities.

*Financial institutions*

Financial institution exposures are high quality, with 97% of the exposures meeting the investment grade

equivalent criteria of our internal credit rating classification at March 31, 2026. In addition, 70% of the financial institutions exposure is secured. For example, securities industry clients and asset managers often borrow against marketable securities held in custody. The exposure to financial institutions is generally short term, with 82% expiring within one year.

*Wealth management loans* 

Wealth management loans are not typically rated by external rating agencies. A majority of the wealth management loans are secured by the customers' investment management accounts or custody accounts. Eligible assets pledged for these loans are typically investment grade fixed-income securities, equities and/or mutual funds. Internal ratings for this portion of the wealth management loan portfolio, therefore, would equate to investment grade external ratings. Wealth management loans are provided to select customers based on the pledge of other types of assets. For the loans collateralized by other assets, the credit quality of the obligor is carefully analyzed,

BNY 57

------

**Notes to Consolidated Financial Statements** (continued)<br>

but we do not consider this portion of our wealth management loan portfolio to be investment grade.

*Wealth management mortgages*

Credit quality indicators for wealth management mortgages are not correlated to external ratings. Wealth management mortgages are typically loans to high-net-worth individuals, which are secured primarily by residential property. These loans are primarily interest-only, adjustable-rate mortgages with a weighted-average loan-to-value ratio of 61% at origination. Delinquency rate is a key indicator of credit quality in our wealth management portfolio. At March 31, 2026, less than 1% of the mortgages were past due.

At March 31, 2026, the wealth management mortgage portfolio consisted of the following geographic concentrations: California – 20%; New York – 14%; Florida – 11%; Massachusetts – 8%; and other – 47%.

*Other residential mortgages*

The other residential mortgages portfolio primarily consists of 1-4 family residential mortgage loans and totaled $1.4 billion at March 31, 2026 and $1.8 billion at Dec. 31, 2025. These loans are not typically correlated to external ratings.

*Capital call financing*

Capital call financing includes loans to private equity funds that are secured by the fund investors' capital commitments and the funds' right to call capital.

*Other loans*

Other loans primarily include loans to consumers that are fully collateralized with equities, mutual funds and fixed-income securities.

*Margin loans*

We had $29.1 billion of secured margin loans at March 31, 2026, compared with $26.3 billion at Dec. 31, 2025. Margin loans are collateralized with marketable securities, and borrowers are required to maintain a daily collateral margin in excess of 100% of the value of the loan. We have rarely suffered a loss on these types of loans.

*Overdrafts*

Overdrafts primarily relate to custody and securities clearance clients and totaled $8.6 billion at March 31, 2026 and $2.8 billion at Dec. 31, 2025. Overdrafts occur on a daily basis and are generally repaid within two business days.

*Reverse repurchase agreements*

Reverse repurchase agreements at March 31, 2026 and Dec. 31, 2025 were fully secured with high-quality collateral. As a result, there was no allowance for credit losses related to these assets at March 31, 2026 and Dec. 31, 2025.

58 BNY

------

**Notes to Consolidated Financial Statements** (continued)<br>

**Note 4–Goodwill and intangible assets**

*Goodwill*

The tables below provide a breakdown of goodwill by business segment.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Goodwill by business segment**<br>*(in millions)* | Securities<br>Services | Market and Wealth Services | Investment<br>and Wealth<br>Management | Consolidated |
| Balance at Dec. 31, 2025 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill | $7388 | $1481 | $8578 | $17447 |
| &nbsp;&nbsp;&nbsp;Accumulated impairment losses |  |  | (680) | (680) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net goodwill | $7388 | $1481 | $7898 | $16767 |
| Business realignment *(a)* | (59) | 59 |  |  |
| Foreign currency translation | (11) | (2) | (20) | (33) |
| &nbsp;&nbsp;**Balance at March 31, 2026** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | $7318 | $1538 | $8558 | $17414 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated impairment losses |  |  | (680) | (680) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net goodwill | $**7318** | $**1538** | $**7878** | $**16734** |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;In the first quarter of 2026, we realigned clients in Managed Accounts Solutions from the Asset Servicing line of business in the Securities Services business segment to the Wealth Solutions (formerly Pershing) line of business in the Market and Wealth Services business segment.*

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Goodwill by business segment**<br>*(in millions)* | Securities<br>Services | Market and Wealth Services | Investment<br>and Wealth<br>Management | Consolidated |
| Balance at Dec. 31, 2024 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill | $7331 | $1475 | $8472 | $17278 |
| &nbsp;&nbsp;&nbsp;Accumulated impairment losses |  |  | (680) | (680) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net goodwill | $7331 | $1475 | $7792 | $16598 |
| Dispositions | (18) |  |  | (18) |
| Foreign currency translation | 33 | 3 | 45 | 81 |
| &nbsp;&nbsp;Balance at March 31, 2025 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | $7346 | $1478 | $8517 | $17341 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated impairment losses |  |  | (680) | (680) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net goodwill | $7346 | $1478 | $7837 | $16661 |

---

*Goodwill impairment testing*

The goodwill impairment test is performed at least annually at the reporting unit level. An interim goodwill impairment test is performed when events or circumstances occur that may indicate that it is more likely than not that the fair value of any reporting unit may be less than its carrying value.In the first quarter of 2026, due to the results of the fourth quarter 2025 interim goodwill impairment test and macroeconomic conditions, we performed an interim goodwill impairment test of the Investment Management reporting unit, which had $6.3 billion of allocated goodwill. No additional goodwill impairment was recognized.

BNY 59

------

**Notes to Consolidated Financial Statements** (continued)<br>

*Intangible assets*

The tables below provide a breakdown of intangible assets by business segment.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Intangible assets – net carrying amount by business segment**<br>*(in millions)* | Securities<br>Services | Market and Wealth Services | Investment<br>and Wealth<br>Management | Other | Consolidated |
| Balance at Dec. 31, 2025 | $164 | $371 | $1438 | $849 | $2822 |
| Business realignment *(a)* | (44) | 44 |  |  |  |
| Amortization | (5) | (1) | (3) |  | (9) |
| Foreign currency translation | (1) |  | (3) |  | (4) |
| &nbsp;&nbsp;**Balance at March 31, 2026** | $**114** | $**414** | $**1432** | $**849** | $**2809** |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;In the first quarter of 2026, we realigned clients in Managed Accounts Solutions from the Asset Servicing line of business in the Securities Services business segment to the Wealth Solutions (formerly Pershing) line of business in the Market and Wealth Services business segment.*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Intangible assets – net carrying amount by business segment**<br>*(in millions)* | Securities<br>Services | Market and Wealth Services | Investment<br>and Wealth<br>Management | Other | Consolidated |
| Balance at Dec. 31, 2024 | $186 | $374 | $1442 | $849 | $2851 |
| Amortization | (6) | (1) | (4) |  | (11) |
| Foreign currency translation | 1 |  | 5 |  | 6 |
| &nbsp;&nbsp;Balance at March 31, 2025 | $181 | $373 | $1443 | $849 | $2846 |

---

The table below provides a breakdown of intangible assets by type.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Intangible assets** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 |
| *(dollars in millions)* | Gross<br>carrying<br>amount | Accumulated<br>amortization | Net<br>carrying<br>amount | Gross<br>carrying<br>amount | Accumulated<br>amortization | Net<br>carrying<br>amount |
| Subject to amortization: *(a)* |  |  |  |  |  |  |
| &nbsp;&nbsp;Customer contracts *–* Securities Services | $**731** | $**(618)** | $**113** | $779 | $(616) | $163 |
| &nbsp;&nbsp;Customer contracts *–* Market and Wealth Services | **316** | **(272)** | **44** | 269 | (268) | 1 |
| &nbsp;&nbsp;Customer relationships *–* Investment and Wealth Management | **512** | **(469)** | **43** | 512 | (467) | 45 |
| &nbsp;&nbsp;Other | **40** | **(16)** | **24** | 40 | (15) | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total subject to amortization | $**1599** | $**(1375)** | $**224** | $1600 | $(1366) | $234 |
| Not subject to amortization: *(b)* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Trade names | $**1293** | **N/A** | $**1293** | $1294 | N/A | $1294 |
| &nbsp;&nbsp;&nbsp;Customer relationships | **1292** | **N/A** | **1292** | 1294 | N/A | 1294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total not subject to amortization | $**2585** | **N/A** | $**2585** | $2588 | N/A | $2588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total intangible assets | $**4184** | $**(1375)** | $**2809** | $4188 | $(1366) | $2822 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Excludes fully amortized intangible assets.*

*(b)*&nbsp;&nbsp;&nbsp;&nbsp;*Intangible assets not subject to amortization have an indefinite life.*

*N/A – Not applicable.*

Estimated annual amortization expense for current intangibles for the next five years is as follows:

---

| | |
|:---|:---|
| For the year ended<br>Dec. 31, | Estimated amortization expense<br>*(in millions)* |
| &nbsp;&nbsp;&nbsp;2026 | $28 |
| &nbsp;&nbsp;&nbsp;2027 | 31 |
| &nbsp;&nbsp;&nbsp;2028 | 27 |
| &nbsp;&nbsp;&nbsp;2029 | 24 |
| &nbsp;&nbsp;&nbsp;2030 | 19 |

---

*Intangible asset impairment testing*

Intangible assets not subject to amortization are tested for impairment annually or more often if events or circumstances indicate they may be impaired.

60 BNY

------

**Notes to Consolidated Financial Statements** (continued)<br>

**Note 5–Other assets**

The following table provides the components of other assets presented on the consolidated balance sheet.

---

| | | |
|:---|:---|:---|
| **Other assets** | **March 31, 2026** | Dec. 31, 2025 |
| *(in millions)* | **March 31, 2026** | Dec. 31, 2025 |
| Corporate/bank-owned life insurance | $**5641** | $5647 |
| Accounts receivable *(a)* | **5225** | 4829 |
| Fails to deliver | **3830** | 1197 |
| Tax credit investments | **3043** | 3151 |
| Software | **2711** | 2707 |
| Prepaid pension assets | **2547** | 2361 |
| Prepaid expense | **1018** | 854 |
| Equity method investments | **960** | 953 |
| Assets of consolidated investment management funds | **959** | 864 |
| Other equity investments *(b)* | **785** | 701 |
| Cash collateral receivable on derivative transactions | **611** | 474 |
| Fair value of hedging derivatives | **532** | 358 |
| Federal Reserve Bank stock | **487** | 484 |
| Income taxes receivable | **307** | 554 |
| Seed capital *(c)* | **153** | 207 |
| Other *(d)* | **1044** | 1099 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other assets | $**29853** | $26440 |

---

*(a) &nbsp;&nbsp;&nbsp;&nbsp;Includes receivables for securities sold or matured that have not yet settled.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Includes strategic equity, private equity and other investments.*

*(c)&nbsp;&nbsp;&nbsp;&nbsp;Includes investments in BNY funds that hedge deferred incentive awards.*

*(d)&nbsp;&nbsp;&nbsp;&nbsp;At March 31, 2026 and Dec. 31, 2025, other assets include $58 million and $57 million, respectively, of Federal Home Loan Bank stock, at cost.*

*Non-readily marketable equity securities*

Non-readily marketable equity securities do not have readily determinable fair values. These investments are valued using a measurement alternative where the investments are carried at cost, less any impairment, and plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The observable price changes are recorded in investment and other revenue on the consolidated income statement. Our non-readily marketable equity securities totaled $518 million at March 31, 2026 and $438 million at Dec. 31, 2025, and are included in other equity investments in the table above.

The following table presents the adjustments to the non-readily marketable equity securities.

---

| | | | |
|:---|:---|:---|:---|
| **Adjustments on non-readily marketable equity securities** | **Adjustments on non-readily marketable equity securities** | **Adjustments on non-readily marketable equity securities** | Life-to-<br>date |
| *(in millions)* | **1Q26** | 1Q25 | Life-to-<br>date |
| Upward adjustments | $**26** | $12 | $394 |
| Downward adjustments | **—** |  | (102) |
| &nbsp;&nbsp;Net adjustments | $**26** | $12 | $292 |

---

*Tax credit investments*

BNY invests in or provides funding to affordable housing and renewable energy projects that are designed to generate an after-tax return, primarily through the realization of income tax credits and other income tax benefits, and in certain cases, cash distributions based on the operations of the project. Using the proportional amortization method, the cost of these investments is amortized in proportion to the income tax credits and other income tax benefits received. The net amortization and income tax credits and other income tax benefits are recognized in the consolidated income statement as a component of the provision for income taxes. Our tax credit investments totaled $3.0 billion at March 31, 2026 and $3.2 billion at Dec. 31, 2025 and are included in other assets on the consolidated balance sheet.

Commitments to fund future investments totaled $871 million at March 31, 2026 and $946 million at Dec. 31, 2025 and are recorded in other liabilities on the consolidated balance sheet. At March 31, 2026, a majority of the commitments are expected to be funded over the next five years.

The table below presents the amortization and income tax credits and other income tax benefits related to our tax credit investments.

---

| | | |
|:---|:---|:---|
| *(in millions)* | **1Q26** | 1Q25 |
| Tax credits and other tax benefits | $**136** | $142 |
| Amortization expense | $**122** | $126 |

---

BNY 61

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**Notes to Consolidated Financial Statements** (continued)<br>

*Investments valued using net asset value ("NAV") per share*

In our Investment and Wealth Management business segment, we make seed capital investments in certain funds we manage. We also hold private equity investments, primarily small business investment companies ("SBICs"), which are compliant with the Volcker Rule, and certain other corporate investments. Seed capital, private equity and other corporate investments are included in other assets on the consolidated balance sheet. The fair value of certain of these investments was estimated using the NAV per share for our ownership interest in the funds.

The table below presents information on our investments valued using NAV.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments valued using NAV** | **March 31, 2026** | **March 31, 2026** | Dec. 31, 2025 | Dec. 31, 2025 |
| *(in millions)* | Fair value | Unfunded <br>commitments | Fair value | Unfunded<br>commitments |
| Seed capital *(a)* | $**7** | $**—** | $6 | $— |
| Private equity investments *(b)* | **138** | **80** | 139 | 75 |
| Other | **10** | **—** | 10 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $**155** | $**80** | $155 | $75 |

---

*(a)*&nbsp;&nbsp;&nbsp;&nbsp;*Seed capital investments at March 31, 2026 are generally redeemable on request. Distributions are received as the underlying investments in the funds, which have redemption notice periods of up to seven days, are liquidated.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Private equity investments primarily include Volcker Rule-compliant investments in SBICs that invest in various sectors of the economy. Private equity investments do not have redemption rights. Distributions from such investments will be received as the underlying investments in the private equity investments, which have a life of 10 years, are liquidated.*

**Note 6–Contract revenue**

Fee and other revenue in the Securities Services, Market and Wealth Services and Investment and Wealth Management business segments is primarily variable, based on levels of assets under custody and/or administration, assets under management and the level of client-driven transactions, as specified in the fee schedules. See Note 9 of the Notes to Consolidated Financial Statements in our 2025 Annual Report for information on the nature of our services and revenue recognition. See Note 23 of the Notes to Consolidated Financial Statements in our 2025 Annual Report for additional information on our principal business segments — Securities Services,

Market and Wealth Services and Investment and Wealth Management — and the primary services provided.

*Disaggregation of contract revenue* 

Contract revenue is included in fee and other revenue on the consolidated income statement. The following table presents fee and other revenue related to contracts with customers, disaggregated by type of fee revenue, for each business segment. Business segment data has been determined on an internal management basis of accounting, rather than GAAP, which is used for consolidated financial reporting.

62 BNY

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**Notes to Consolidated Financial Statements** (continued)<br>

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Disaggregation of contract revenue by business segment** | **Disaggregation of contract revenue by business segment** | **Disaggregation of contract revenue by business segment** | **Disaggregation of contract revenue by business segment** | **Disaggregation of contract revenue by business segment** | **Disaggregation of contract revenue by business segment** | | | | | |
|  | Quarter ended | Quarter ended | Quarter ended | Quarter ended | Quarter ended | Quarter ended | Quarter ended | Quarter ended | Quarter ended | Quarter ended |
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | March 31, 2025 | March 31, 2025 | March 31, 2025 | March 31, 2025 | March 31, 2025 |
| *(in millions)* | Securities Services | Market and Wealth Services | Investment and Wealth Management | Other | Total | Securities Services | Market and Wealth Services | Investment and Wealth Management | Other | Total |
| Fee and other revenue – contract revenue: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Investment services fees *(a)* | $**1421** | $**1177** | $**26** | $**(16)** | $**2608** | $1297 | $1079 | $25 | $(18) | $2383 |
| &nbsp;&nbsp;Investment management and performance fees | **—** | **3** | **781** | **(4)** | **780** |  | 3 | 748 | (3) | 748 |
| &nbsp;&nbsp;Financing-related fees | **19** | **10** | **—** | **—** | **29** | 15 | 8 |  |  | 23 |
| &nbsp;&nbsp;Distribution and servicing fees | **1** | **(34)** | **70** | **—** | **37** | 1 | (33) | 68 |  | 36 |
| &nbsp;&nbsp;Investment and other revenue | **74** | **72** | **(113)** | **(2)** | **31** | 67 | 67 | (103) | 2 | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fee and other revenue – contract revenue | **1515** | **1228** | **764** | **(22)** | **3485** | 1380 | 1124 | 738 | (19) | 3223 |
| Fee and other revenue – not in scope of Accounting Standards Codification ("ASC") 606 *(a)(b)(c)* | **406** | **93** | **8** | **49** | **556** | 278 | 77 |  | 53 | 408 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fee and other revenue | $**1921** | $**1321** | $**772** | $**27** | $**4041** | $1658 | $1201 | $738 | $34 | $3631 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Prior period results were revised in the first quarter of 2026 to reflect the realignment of clients in Managed Accounts Solutions from the Asset Servicing line of business in the Securities Services business segment to the Wealth Solutions (formerly Pershing) line of business in the Market and Wealth Services business segment.* 

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Primarily includes investment services fees, foreign exchange revenue, financing-related fees and investment and other revenue, all of which are accounted for using other accounting guidance.* 

*(c)&nbsp;&nbsp;&nbsp;&nbsp;The Investment and Wealth Management business segment is net of income (loss) attributable to noncontrolling interests related to consolidated investment management funds of $(2) million in the first quarter of 2026 and $2 million in the first quarter of 2025.*

*Contract balances* 

Our clients are billed based on fee schedules that are agreed upon in each customer contract. Receivables from customers were $3.0 billion at March 31, 2026 and $2.9 billion at Dec. 31, 2025.

Contract assets represent accrued revenues that have not yet been billed to customers due to certain contractual terms other than the passage of time and were $46 million at March 31, 2026 and $37 million at Dec. 31, 2025. Accrued revenues recorded as contract assets are usually billed on an annual basis.

Both receivables from customers and contract assets are included in other assets on the consolidated balance sheet.

Contract liabilities represent payments received in advance of providing services under certain contracts and were $229 million at March 31, 2026 and $180 million at Dec. 31, 2025. Contract liabilities are included in other liabilities on the consolidated balance sheet. Revenue recognized in the first quarter of 2026 relating to contract liabilities as of Dec. 31, 2025 was $50 million.

Changes in contract assets and liabilities primarily relate to either party's performance under the contracts.

*Contract costs*

Incremental costs for obtaining contracts that are deemed recoverable are capitalized as contract costs. Such costs result from the payment of sales incentives, primarily in the Wealth Management business, and totaled $48 million at March 31, 2026 and $47 million at Dec. 31, 2025. Capitalized sales incentives are amortized based on the transfer of goods or services to which the assets relate. The amortization of capitalized sales incentives, which is included in staff expense on the consolidated income statement, totaled $3 million in the first quarter of 2026 and $3 million in the first quarter of 2025.

Costs to fulfill a contract are capitalized when they relate directly to an existing contract or a specific anticipated contract, generate or enhance resources that will be used to fulfill performance obligations, and are recoverable. Such costs generally represent set-up costs, which include any direct cost incurred at the inception of a contract which enables the fulfillment of the performance obligation, and totaled $133 million at March 31, 2026 and $128 million at Dec. 31, 2025. These capitalized costs are amortized on a straight-line basis over the expected contract period.

BNY 63

------

**Notes to Consolidated Financial Statements** (continued)<br>

*Unsatisfied performance obligations*

We do not have any unsatisfied performance obligations other than those that are subject to a practical expedient election under ASC 606, *Revenue From Contracts With Customers*. The practical

expedient election applies to (i) contracts with an original expected length of one year or less, and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.

**Note 7–Net interest income**

The following table provides the components of net interest income presented on the consolidated income statement.

---

| | | |
|:---|:---|:---|
| **Net interest income** | Quarter ended | Quarter ended |
| *(in millions)* | **March 31, 2026** | March 31, 2025 |
| **Interest income** |  |  |
| Deposits with the Federal Reserve and other central banks | $**781** | $826 |
| Deposits with banks | **68** | 84 |
| Federal funds sold and securities purchased under resale agreements | **2567** | 2922 |
| Loans | **1020** | 999 |
| Investment securities | **1298** | 1211 |
| Trading securities | **90** | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest income | **5824** | 6123 |
| **Interest expense** |  |  |
| Deposits | **1554** | 1722 |
| Federal funds purchased and securities sold under repurchase agreements | **2298** | 2610 |
| Trading liabilities | **27** | 23 |
| Other borrowed funds | **4** | 4 |
| Commercial paper | **19** | 14 |
| Customer payables | **151** | 157 |
| Long-term debt | **401** | 434 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | **4454** | 4964 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income | **1370** | 1159 |
| Provision for credit losses | **(7)** | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income after provision for credit losses | $**1377** | $1141 |

---

**Note 8–Employee benefit plans**

The components of net periodic benefit (credit) cost are presented below. The service cost component is reflected in staff expense, whereas the remaining components are reflected in other expense.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Net periodic benefit (credit) cost** | Quarter ended | Quarter ended | Quarter ended | Quarter ended | Quarter ended | Quarter ended |
| **Net periodic benefit (credit) cost** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | March 31, 2025 | March 31, 2025 | March 31, 2025 |
| *(in millions)* | Domestic pension benefits | Foreign pension benefits | Healthcare benefits | Domestic pension benefits | Foreign pension benefits | Healthcare benefits |
| Service cost | $**—** | $**4** | $**—** | $— | $3 | $— |
| Interest cost | **44** | **12** | **1** | 46 | 10 | 1 |
| Expected return on assets | **(88)** | **(20)** | **(2)** | (91) | (19) | (2) |
| Other | **14** | **—** | **1** | 8 | (1) | 1 |
| &nbsp;&nbsp;&nbsp;Net periodic benefit (credit) | $**(30)** | $**(4)** | $**—** | $(37) | $(7) | $— |

---

64 BNY

------

**Notes to Consolidated Financial Statements** (continued)<br>

**Note 9–Variable interest entities**

We have variable interests in variable interest entities ("VIEs"), which include investments in retail, institutional and alternative investment funds.

We earn management fees from these funds, as well as performance fees in certain funds, and may also provide start-up capital for new funds. The funds are primarily financed by our customers' investments in the funds' equity or debt.

Additionally, we invest in qualified affordable housing and renewable energy projects, which are designed to generate a return primarily through the realization of tax credits. The projects, which are structured as limited partnerships and limited liability companies, are also VIEs, but are not consolidated.

The following table presents the incremental assets and liabilities included on the consolidated balance sheet as of March 31, 2026 and Dec. 31, 2025. The net assets of any consolidated VIE are solely available to settle the liabilities of the VIE and to settle any investors' ownership liquidation requests, including any seed capital we invested in the VIE.

---

| | | |
|:---|:---|:---|
| **Consolidated investment management funds** *(a)* | **Consolidated investment management funds** *(a)* | |
|  | **March 31, 2026** | Dec. 31, 2025 |
| *(in millions)* | **March 31, 2026** | Dec. 31, 2025 |
| Trading assets | $**935** | $841 |
| Other assets | **24** | 23 |
| &nbsp;&nbsp;&nbsp;Total assets | $**959** | $864 |
| Other liabilities | $**7** | $1 |
| &nbsp;&nbsp;&nbsp;Total liabilities | $**7** | $1 |
| Nonredeemable noncontrolling <br> interests | $**455** | $408 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Includes voting model entities ("VMEs") with assets of $51 million, liabilities of $1 million and nonredeemable noncontrolling interests of less than $1 million at March 31, 2026. There were no VMEs at Dec. 31, 2025.* 

We have not provided financial or other support that was not otherwise contractually required to be provided to our VIEs. Additionally, creditors of any consolidated VIEs do not have any recourse to the general credit of BNY.

*Non-consolidated VIEs*

As of March 31, 2026 and Dec. 31, 2025, assets and liabilities related to the VIEs where we are not the primary beneficiary are included in other assets and other liabilities on the consolidated balance sheet and primarily relate to our tax credit investments.

The maximum loss exposure presented below relates solely to our investments in, and unfunded commitments to, the VIEs.

---

| | | |
|:---|:---|:---|
| **Non-consolidated VIEs** | **March 31, 2026** | Dec. 31, 2025 |
| *(in millions)* | **March 31, 2026** | Dec. 31, 2025 |
| Other assets | $**3123** | $3258 |
| Other liabilities | **871** | 946 |
| Maximum loss exposure | **3995** | 4205 |

---

BNY 65

------

**Notes to Consolidated Financial Statements** (continued)<br>

**Note 10–Preferred stock**

The Parent has 100 million authorized shares of preferred stock with a par value of $0.01 per share. The following table summarizes the Parent's preferred stock issued and outstanding at March 31, 2026 and Dec. 31, 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Preferred stock summary** *(a)* | **Preferred stock summary** *(a)* | Total shares issued and outstanding | Total shares issued and outstanding | Carrying value *(b)* | Carrying value *(b)* |
|  |  | Total shares issued and outstanding | Total shares issued and outstanding | *(in millions)* | *(in millions)* |
|  |  | **March 31, 2026** | Dec. 31, 2025 | **March 31, 2026** | Dec. 31, 2025 |
|  | **Per annum dividend rate** *(c)* | **March 31, 2026** | Dec. 31, 2025 | **March 31, 2026** | Dec. 31, 2025 |
| Series A | Greater of (i) SOFR plus 0.565% and (ii) 4.000% | **5001** | 5001 | $**500** | $500 |
| Series F | 4.625% to but excluding Sept. 20, 2026, then SOFR plus 3.131% | **10000** | 10000 | **990** | 990 |
| Series H | 3.700% to but excluding March 20, 2026, then a floating rate equal to the five-year treasury rate plus 3.352% | **5825** | 5825 | **576** | 576 |
| Series I | 3.750% to but excluding Dec. 20, 2026, then a floating rate equal to the five-year treasury rate plus 2.630% | **13000** | 13000 | **1287** | 1287 |
| Series J | 6.300% to but excluding March 20, 2030, then a floating rate equal to the five-year treasury rate plus 2.297% | **5000** | 5000 | **494** | 494 |
| Series K | 6.150% to but excluding March 20, 2030, then a floating rate equal to the five-year treasury rate plus 2.161% | **5000** | 5000 | **494** | 494 |
| Series L | 5.950% to but excluding Dec. 20, 2030, then a floating rate equal to the five-year treasury rate plus 2.271% | **5000** | 5000 | **495** | 495 |
| Series M | 5.625% to but excluding March 20, 2031, then a floating rate equal to the five-year treasury rate plus 2.034% | **5000** |  | **495** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | **53826** | 48826 | $**5331** | $4836 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;All outstanding preferred stock is noncumulative perpetual preferred stock with a liquidation preference of $100,000 per share.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;The carrying value of the Series F, Series H, Series I, Series J, Series K, Series L and Series M preferred stock is recorded net of issuance costs.*

*(c)&nbsp;&nbsp;&nbsp;&nbsp;References to SOFR are to a floating rate equal to the three-month CME Term SOFR (plus a spread adjustment of 0.26161% per annum).*

The table below presents the Parent's preferred dividends.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Preferred dividends** | **Preferred dividends** | **Preferred dividends** | **Preferred dividends** | **Preferred dividends** | | |
| *(dollars in millions, except per share amounts)* | Depositary shares <br>per share | Depositary shares <br>per share | **1Q26** | **1Q26** | 1Q25 | 1Q25 |
| *(dollars in millions, except per share amounts)* | Depositary shares <br>per share | Depositary shares <br>per share | Per share | Total<br>dividend | Per share | Total<br>dividend |
| Series A | 100 | *(a)* | $**1105.18** | $**6** | $1295.17 | $7 |
| Series F | 100 |  | **2312.50** | **23** | 2312.50 | 23 |
| Series G | 100 |  | **N/A** | **N/A** | 2350.00 | 24 |
| Series H | 100 |  | **925.00** | **5** | 925.00 | 5 |
| Series I | 100 |  | **937.50** | **12** | 937.50 | 12 |
| Series J | 100 |  | **3150.00** | **16** | N/A | N/A |
| Series K | 4000 |  | **1537.50** | **8** | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  |  |  | $**70** |  | $71 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Represents Normal Preferred Capital Securities.*

*N/A - Not applicable.*

In March 2026, the Parent issued 500,000 depositary shares, each representing a 1/100th interest in a share of the Parent's Series M Noncumulative Perpetual Preferred Stock. Holders of the Series M preferred stock are entitled to receive dividends, if declared by the Parent's Board of Directors, on March 20, June 20, September 20 and December 20 of each year, commencing June 20, 2026.

All of the outstanding shares of the Series M preferred stock are held by the depositary of the depositary shares, which will pass through the applicable portion of any dividend on the Series M preferred stock to the holders of record of the depositary shares.

The Series M preferred stock is not subject to the operation of a sinking fund and is not convertible into, or exchangeable for, shares of our common

66 BNY

------

**Notes to Consolidated Financial Statements** (continued)<br>

stock or any other class or series of our other securities. We may, at our option, redeem the shares of the Series M preferred stock on any dividend payment date, in whole or in part, on or after the dividend payment date in March 2031. The Series M preferred stock can be redeemed, in whole but not in part, at any time within 90 days following a regulatory capital treatment event. Redemption of the preferred stock is subject to the prior approval of the Federal Reserve.

All of the outstanding shares of the Series A preferred stock are owned by Mellon Capital IV, a 100%-owned finance subsidiary of the Parent, which will

pass through any dividend on the Series A preferred stock to the holders of its Normal Preferred Capital Securities. The Parent's obligations under the trust and other agreements relating to Mellon Capital IV have the effect of providing a full and unconditional guarantee, on a subordinated basis, of payments due on the Normal Preferred Capital Securities. No other subsidiary of the Parent guarantees the securities of Mellon Capital IV.

For additional information on our preferred stock, see Note 14 of the Notes to Consolidated Financial Statements in our 2025 Annual Report.

**Note 11–Other comprehensive income (loss)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Components of other comprehensive income (loss)** | Quarter ended | Quarter ended | Quarter ended | Quarter ended | Quarter ended | Quarter ended |
| **Components of other comprehensive income (loss)** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | March 31, 2025 | March 31, 2025 | March 31, 2025 |
| *(in millions)* | Pre-tax<br>amount | Tax<br>(expense)<br>benefit | After-tax<br>amount | Pre-tax<br>amount | Tax<br>(expense)<br>benefit | After-tax<br>amount |
| Foreign currency translation: |  |  |  |  |  |  |
| &nbsp;&nbsp;Foreign currency translation adjustments arising during the period *(a)* | $**(45)** | $**(43)** | $**(88)** | $118 | $89 | $207 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total foreign currency translation | **(45)** | **(43)** | **(88)** | 118 | 89 | 207 |
| Unrealized gain on assets available-for-sale: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized gain arising during period | **(541)** | **135** | **(406)** | 440 | (107) | 333 |
| &nbsp;&nbsp;Reclassification adjustment *(b)* | **50** | **(13)** | **37** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gain (loss) on assets available-for-sale | **(491)** | **122** | **(369)** | 440 | (107) | 333 |
| Defined benefit plans: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net (loss) arising during the period | **2** | **—** | **2** | (7) | 2 | (5) |
| &nbsp;&nbsp;&nbsp;Foreign exchange adjustment | **1** | **—** | **1** |  |  |  |
| &nbsp;&nbsp;Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost *(b)* | **15** | **(4)** | **11** | 8 | (2) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total defined benefit plans | **18** | **(4)** | **14** | 1 |  | 1 |
| Unrealized gain (loss) on cash flow hedges: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized hedge (loss) gain arising during period | **(31)** | **7** | **(24)** | 1 |  | 1 |
| &nbsp;&nbsp;&nbsp;Reclassification of net (gain) loss to net income: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange ("FX") contracts – staff expense | **3** | **(1)** | **2** | 4 | (1) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;FX contracts – investment and other revenue | **2** | **—** | **2** | (1) |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate contracts - interest expense | **1** |  | **1** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total reclassifications to net income | **6** | **(1)** | **5** | 3 | (1) | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized (loss) gain on cash flow hedges | **(25)** | **6** | **(19)** | 4 | (1) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income | $**(543)** | $**81** | $**(462)** | $563 | $(19) | $544 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Includes the impact of hedges of net investments in foreign subsidiaries. See Note 14 for additional information.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;The reclassification adjustment related to the unrealized gain (loss) on assets available-for-sale is recorded as net investment securities gains (losses) in investment and other revenue on the consolidated income statement. The amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost is recorded as other expense on the consolidated income statement.* 

BNY 67

------

**Notes to Consolidated Financial Statements** (continued)<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Changes in accumulated other comprehensive income (loss) attributable to The Bank of New York Mellon Corporation shareholders** | **Changes in accumulated other comprehensive income (loss) attributable to The Bank of New York Mellon Corporation shareholders** | **Changes in accumulated other comprehensive income (loss) attributable to The Bank of New York Mellon Corporation shareholders** | **Changes in accumulated other comprehensive income (loss) attributable to The Bank of New York Mellon Corporation shareholders** | **Changes in accumulated other comprehensive income (loss) attributable to The Bank of New York Mellon Corporation shareholders** | **Changes in accumulated other comprehensive income (loss) attributable to The Bank of New York Mellon Corporation shareholders** | **Changes in accumulated other comprehensive income (loss) attributable to The Bank of New York Mellon Corporation shareholders** |
|  |  |  |  | Unrealized gain (loss) on assets available-for-sale *(a)* | Unrealized gain (loss) on cash flow hedges | Total accumulated<br>other comprehensive<br>(loss) income, <br>net of tax |
| *(in millions)* | Foreign currency translation | Pensions | Other post-retirement benefits | Unrealized gain (loss) on assets available-for-sale *(a)* | Unrealized gain (loss) on cash flow hedges | Total accumulated<br>other comprehensive<br>(loss) income, <br>net of tax |
| **Quarter ended March 31, 2026** |  |  |  |  |  |  |
| Balance, beginning of period | $(1451) | $(1295) | $(35) | $(241) | $(13) | $(3035) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change | **(87)** | **13** | **1** | **(369)** | **(19)** | **(461)** |
| Balance, end of period | $**(1538)** | $**(1282)** | $**(34)** | $**(610)** | $**(32)** | $**(3496)** |
| **Quarter ended March 31, 2025** |  |  |  |  |  |  |
| Balance, beginning of period | $(2031) | $(1344) | $(36) | $(1240) | $(5) | $(4656) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change | 204 | 7 | (6) | 333 | 3 | 541 |
| Balance, end of period | $(1827) | $(1337) | $(42) | $(907) | $(2) | $(4115) |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Held-to-maturity securities transferred from available-for-sale securities are initially recorded at fair value as of the date of transfer. On an after-tax basis, accumulated OCI (loss) includes $(9) million at March 31, 2026 and $(5) million at March 31, 2025 associated with available-for-sale securities that were transferred to held-to-maturity securities inclusive of hedges. These amounts are subsequently amortized into earnings over the same period as the related unamortized premiums and discounts.*

**Note 12–Fair value measurement**

Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. A three-level hierarchy for fair value measurements is utilized based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. BNY's own creditworthiness is considered when valuing liabilities. See Note 1 of the Notes to Consolidated Financial Statements in our 2025 Annual Report for

information on how we determine fair value and the fair value hierarchy.

The following tables present the financial instruments carried at fair value at March 31, 2026 and Dec. 31, 2025, by caption on the consolidated balance sheet and by the three-level valuation hierarchy. We have included credit ratings information in certain of the tables because the information indicates the degree of credit risk to which we are exposed, and significant changes in ratings classifications could result in increased risk for us.

68 BNY

------

**Notes to Consolidated Financial Statements** (continued)<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Assets and liabilities measured at fair value on a recurring basis at March 31, 2026** | **Assets and liabilities measured at fair value on a recurring basis at March 31, 2026** | **Assets and liabilities measured at fair value on a recurring basis at March 31, 2026** | **Assets and liabilities measured at fair value on a recurring basis at March 31, 2026** | **Assets and liabilities measured at fair value on a recurring basis at March 31, 2026** | Total carrying<br>value |
| *(dollars in millions)* | Level 1 | Level 2 | Level 3 | Netting *(a)* | Total carrying<br>value |
| **Assets:** |  |  |  |  |  |
| Available-for-sale securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury | $27487 | $958 | $— | $— | $28445 |
| &nbsp;&nbsp;Non-U.S. government *(b)* | 6809 | 21292 |  |  | 28101 |
| &nbsp;&nbsp;&nbsp;Agency RMBS |  | 23507 |  |  | 23507 |
| &nbsp;&nbsp;&nbsp;Foreign covered bonds |  | 8016 |  |  | 8016 |
| &nbsp;&nbsp;&nbsp;Agency commercial MBS |  | 6661 |  |  | 6661 |
| &nbsp;&nbsp;&nbsp;CLOs |  | 6541 |  |  | 6541 |
| &nbsp;&nbsp;&nbsp;Non-agency commercial MBS |  | 2094 |  |  | 2094 |
| &nbsp;&nbsp;&nbsp;U.S. government agencies |  | 1544 |  |  | 1544 |
| &nbsp;&nbsp;&nbsp;Non-agency RMBS |  | 1529 |  |  | 1529 |
| &nbsp;&nbsp;&nbsp;Other ABS |  | 347 |  |  | 347 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale securities | 34296 | 72489 |  |  | 106785 |
| Trading assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Debt instruments | 2122 | 3777 |  |  | 5899 |
| &nbsp;&nbsp;&nbsp;Equity instruments | 7529 |  |  |  | 7529 |
| &nbsp;&nbsp;&nbsp;Derivative assets not designated as hedging: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 13 | 830 |  |  | 843 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange |  | 8812 |  |  | 8812 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity and other contracts | 4 | 306 |  |  | 310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Netting agreements |  |  |  | (6905) | (6905) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivative assets not designated as hedging | 17 | 9948 |  | (6905) | 3060 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total trading assets | 9668 | 13725 |  | (6905) | 16488 |
| Other assets: |  |  |  |  |  |
| &nbsp;&nbsp;Derivative assets designated as hedging: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate |  | 302 |  |  | 302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange |  | 230 |  |  | 230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivative assets designated as hedging |  | 532 |  |  | 532 |
| &nbsp;&nbsp;Other assets *(c)* | 582 | 603 |  |  | 1185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other assets | 582 | 1135 |  |  | 1717 |
| &nbsp;&nbsp;Assets measured at NAV *(c)* |  |  |  |  | 155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**44546** | $**87349** | $**—** | $**(6905)** | $**125145** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Percentage of total assets prior to netting | 34% | 66% | —% |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Liabilities:** | | | | | |
| Trading liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Debt instruments | $2221 | $26 | $— | $— | $2247 |
| &nbsp;&nbsp;&nbsp;Equity instruments | 187 |  |  |  | 187 |
| &nbsp;&nbsp;&nbsp;Derivative liabilities not designated as hedging: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 9 | 955 |  |  | 964 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange |  | 8724 |  |  | 8724 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity and other contracts |  | 29 |  |  | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;Netting agreements |  |  |  | (7404) | (7404) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivative liabilities not designated as hedging | 9 | 9708 |  | (7404) | 2313 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total trading liabilities | 2417 | 9734 |  | (7404) | 4747 |
| Other liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;Derivative liabilities designated as hedging: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate |  | 13 |  |  | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange |  | 39 |  |  | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivative liabilities designated as hedging |  | 52 |  |  | 52 |
| &nbsp;&nbsp;Other liabilities | 542 | 6 |  |  | 548 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other liabilities | 542 | 58 |  |  | 600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | $**2959** | $**9792** | $**—** | $**(7404)** | $**5347** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Percentage of total liabilities prior to netting | 23% | 77% | —% |  |  |

---

*(a)*&nbsp;&nbsp;&nbsp;&nbsp;*ASC 815, Derivatives and Hedging, permits the netting of derivative receivables and derivative payables under legally enforceable master netting agreements and permits the netting of cash collateral. Netting is applicable to derivatives not designated as hedging instruments included in trading assets or trading liabilities and derivatives designated as hedging instruments included in other assets or other liabilities. Netting is allocated to the derivative products based on the net fair value of each product.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Includes supranational securities.* 

*(c)*&nbsp;&nbsp;&nbsp;&nbsp;*Includes seed capital, private equity investments and other assets.* 

BNY 69

------

**Notes to Consolidated Financial Statements** (continued)<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Assets and liabilities measured at fair value on a recurring basis at Dec. 31, 2025** | **Assets and liabilities measured at fair value on a recurring basis at Dec. 31, 2025** | **Assets and liabilities measured at fair value on a recurring basis at Dec. 31, 2025** | **Assets and liabilities measured at fair value on a recurring basis at Dec. 31, 2025** | **Assets and liabilities measured at fair value on a recurring basis at Dec. 31, 2025** | Total carrying<br>value |
| *(dollars in millions)* | Level 1 | Level 2 | Level 3 | Netting *(a)* | Total carrying<br>value |
| **Assets:** |  |  |  |  |  |
| Available-for-sale securities: |  |  |  |  |  |
| &nbsp;&nbsp;Non-U.S. government *(b)* | $7196 | $21372 | $— | $— | $28568 |
| &nbsp;&nbsp;&nbsp;U.S. Treasury | 24755 | 956 |  |  | 25711 |
| &nbsp;&nbsp;&nbsp;Agency RMBS |  | 21220 |  |  | 21220 |
| &nbsp;&nbsp;&nbsp;Foreign covered bonds |  | 8068 |  |  | 8068 |
| &nbsp;&nbsp;&nbsp;Agency commercial MBS |  | 6780 |  |  | 6780 |
| &nbsp;&nbsp;&nbsp;CLOs |  | 6118 |  |  | 6118 |
| &nbsp;&nbsp;&nbsp;Non-agency commercial MBS |  | 2196 |  |  | 2196 |
| &nbsp;&nbsp;&nbsp;U.S. government agencies |  | 1554 |  |  | 1554 |
| &nbsp;&nbsp;&nbsp;Non-agency RMBS |  | 1515 |  |  | 1515 |
| &nbsp;&nbsp;&nbsp;Other ABS |  | 376 |  |  | 376 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale securities | 31951 | 70155 |  |  | 102106 |
| Trading assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Debt instruments | 2426 | 3778 |  |  | 6204 |
| &nbsp;&nbsp;&nbsp;Equity instruments | 7040 |  |  |  | 7040 |
| &nbsp;&nbsp;&nbsp;Derivative assets not designated as hedging: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 5 | 713 |  |  | 718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange |  | 5517 |  |  | 5517 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity and other contracts |  | 21 |  |  | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Netting agreements |  |  |  | (5224) | (5224) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivative assets not designated as hedging | 5 | 6251 |  | (5224) | 1032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total trading assets | 9471 | 10029 |  | (5224) | 14276 |
| Other assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative assets designated as hedging: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate |  | 305 |  |  | 305 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange |  | 53 |  |  | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivative assets designated as hedging |  | 358 |  |  | 358 |
| &nbsp;&nbsp;Other assets *(c)* | 575 | 578 |  |  | 1153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other assets | 575 | 936 |  |  | 1511 |
| &nbsp;&nbsp;Assets measured at NAV *(c)* |  |  |  |  | 155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $41997 | $81120 | $— | $(5224) | $118048 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Percentage of total assets prior to netting | 34% | 66% | —% |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Liabilities:** | | | | | |
| Trading liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Debt instruments | $3303 | $41 | $| $— | $3344 |
| &nbsp;&nbsp;&nbsp;Equity instruments | 241 |  |  |  | 241 |
| &nbsp;&nbsp;&nbsp;Derivative liabilities not designated as hedging: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 3 | 970 |  |  | 973 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange |  | 5351 |  |  | 5351 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity and other contracts | 1 | 56 |  |  | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;Netting agreements |  |  |  | (3831) | (3831) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivative liabilities not designated as hedging | 4 | 6377 |  | (3831) | 2550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total trading liabilities | 3548 | 6418 |  | (3831) | 6135 |
| Other liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;Derivative liabilities designated as hedging: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange |  | 81 |  |  | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivative liabilities designated as hedging |  | 81 |  |  | 81 |
| &nbsp;&nbsp;Other liabilities | 535 | 1 |  |  | 536 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other liabilities | 535 | 82 |  |  | 617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $4083 | $6500 | $| $(3831) | $6752 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Percentage of total liabilities prior to netting | 39% | 61% | —% |  |  |

---

*(a)*&nbsp;&nbsp;&nbsp;&nbsp;*ASC 815, Derivatives and Hedging, permits the netting of derivative receivables and derivative payables under legally enforceable master netting agreements and permits the netting of cash collateral. Netting is applicable to derivatives not designated as hedging instruments included in trading assets or trading liabilities and derivatives designated as hedging instruments included in other assets or other liabilities. Netting is allocated to the derivative products based on the net fair value of each product.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Includes supranational securities.* 

*(c)*&nbsp;&nbsp;&nbsp;&nbsp;*Includes seed capital, private equity investments and other assets.*

70 BNY

------

**Notes to Consolidated Financial Statements** (continued)<br>

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Details of certain available-for-sale securities measured at fair value on a recurring basis** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 |
| **Details of certain available-for-sale securities measured at fair value on a recurring basis** | Total<br>carrying<br>value *(b)* | Ratings *(a)* | Ratings *(a)* | Ratings *(a)* | Ratings *(a)* | Ratings *(a)* | Total<br>carrying value *(b)* | Ratings *(a)* | Ratings *(a)* | Ratings *(a)* | Ratings *(a)* | Ratings *(a)* |
| **Details of certain available-for-sale securities measured at fair value on a recurring basis** | Total<br>carrying<br>value *(b)* | AAA/<br>AA- | A+/<br>A- | BBB+/<br>BBB- | BB+ and<br>lower | Not rated | Total<br>carrying value *(b)* | AAA/<br>AA- | A+/<br>A- | BBB+/<br>BBB- | BB+ and<br>lower | Not rated |
| *(dollars in millions)* | Total<br>carrying<br>value *(b)* | AAA/<br>AA- | A+/<br>A- | BBB+/<br>BBB- | BB+ and<br>lower | Not rated | Total<br>carrying value *(b)* | AAA/<br>AA- | A+/<br>A- | BBB+/<br>BBB- | BB+ and<br>lower | Not rated |
| Non-agency RMBS, originated in: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;2008-2026 | $**1524** | **100%** | **—%** | **—%** | **—%** | **—%** | $1509 | 100% | —% | —% | —% | —% |
| &nbsp;&nbsp;&nbsp;2007 and earlier | **5** | **—** | **100** | **—** | **—** | **—** | 6 |  | 100 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-agency RMBS | $**1529** | **100%** | **—%** | **—%** | **—%** | **—%** | $1515 | 100% | —% | —% | —% | —% |
| Non-agency commercial MBS originated in: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;2009-2026 | $**2094** | **100%** | **—%** | **—%** | **—%** | **—%** | $2196 | 100% | —% | —% | —% | —% |
| Foreign covered bonds: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Canada | $**1893** | **100%** | **—%** | **—%** | **—%** | **—%** | $1923 | 100% | —% | —% | —% | —% |
| &nbsp;&nbsp;&nbsp;UK | **1171** | **100** | **—** | **—** | **—** | **—** | 1057 | 100 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Australia | **944** | **100** | **—** | **—** | **—** | **—** | 882 | 100 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Germany | **759** | **100** | **—** | **—** | **—** | **—** | 793 | 100 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Singapore | **559** | **100** | **—** | **—** | **—** | **—** | 607 | 100 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Netherlands | **521** | **100** | **—** | **—** | **—** | **—** | 531 | 100 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other | **2169** | **100** | **—** | **—** | **—** | **—** | 2275 | 100 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total foreign covered bonds | $**8016** | **100%** | **—%** | **—%** | **—%** | **—%** | $8068 | 100% | —% | —% | —% | —% |
| Non-U.S. government: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;UK | $**4440** | **100%** | **—%** | **—%** | **—%** | **—%** | $4702 | 100% | —% | —% | —% | —% |
| &nbsp;&nbsp;&nbsp;Germany | **2216** | **100** | **—** | **—** | **—** | **—** | 2045 | 100 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Canada | **1839** | **88** | **12** | **—** | **—** | **—** | 1835 | 90 | 10 |  |  |  |
| &nbsp;&nbsp;&nbsp;France | **1749** | **30** | **70** | **—** | **—** | **—** | 2037 | 31 | 69 |  |  |  |
| &nbsp;&nbsp;&nbsp;Netherlands | **1592** | **100** | **—** | **—** | **—** | **—** | 1825 | 100 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Austria | **904** | **100** | **—** | **—** | **—** | **—** | 742 | 100 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Finland | **839** | **100** | **—** | **—** | **—** | **—** | 688 | 100 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Spain | **636** | **—** | **100** | **—** | **—** | **—** | 628 |  | 100 |  |  |  |
| &nbsp;&nbsp;&nbsp;Japan | **459** | **—** | **100** | **—** | **—** | **—** | 470 |  | 100 |  |  |  |
| &nbsp;&nbsp;&nbsp;Belgium | **418** | **100** | **—** | **—** | **—** | **—** | 371 | 100 |  |  |  |  |
| &nbsp;&nbsp;Other *(c)* | **1454** | **53** | **36** | **3** | **8** | **—** | 1490 | 56 | 33 | 3 | 8 |  |
| &nbsp;&nbsp;&nbsp;Supranational | **11555** | **86** | **14** | **—** | **—** | **—** | 11735 | 87 | 13 |  |  |  |
| &nbsp;&nbsp;&nbsp;Total non-U.S. government | $**28101** | **83%** | **17%** | **—%** | **—%** | **—%** | $28568 | 83% | 17% | —% | —% | —% |

---

*(a)*&nbsp;&nbsp;&nbsp;&nbsp;*Represents ratings by S&P or the equivalent.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;At March 31, 2026 and Dec. 31, 2025, non-U.S. government securities were included in Level 1 and Level 2 in the valuation hierarchy. All other assets in the table are Level 2 assets in the valuation hierarchy.*

*(c)&nbsp;&nbsp;&nbsp;&nbsp;Includes non-investment grade non-U.S. government securities related to Brazil of $112 million at March 31, 2026 and $112 million at Dec. 31, 2025.*

*Assets and liabilities measured at fair value on a nonrecurring basis*

Under certain circumstances, we make adjustments to the fair value of our assets, liabilities and unfunded lending-related commitments, although they are not measured at fair value on an ongoing basis. The following table presents the carrying value as of March 31, 2026 and Dec. 31, 2025 of financial instruments for which nonrecurring adjustments to fair value have been recorded during 2026 and/or 2025 and all non-readily marketable equity securities carried at cost with upward or downward adjustments by balance sheet caption and level in the fair value hierarchy.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Assets measured at fair value on a nonrecurring basis** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 |
| **Assets measured at fair value on a nonrecurring basis** |  |  |  | Total carrying<br>value |  |  |  | Total carrying<br>value |
| *(in millions)* | Level 1 | Level 2 | Level 3 | Total carrying<br>value | Level 1 | Level 2 | Level 3 | Total carrying<br>value |
| Loans *(a)* | $**—** | $**20** | $**—** | $**20** | $— | $21 | $— | $21 |
| Other assets *(b)* | **—** | **520** | **—** | **520** |  | 440 |  | 440 |
| &nbsp;&nbsp;&nbsp;Total assets at fair value on a nonrecurring basis | $**—** | $**540** | $**—** | $**540** | $— | $461 | $— | $461 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;The fair value of these loans was unchanged in the first quarter of 2026 and the fourth quarter of 2025 based on the fair value of the underlying collateral, as required by guidance in ASC 326, Financial Instruments – Credit Losses, with an offset to the allowance for credit losses.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Includes non-readily marketable equity securities carried at cost with upward or downward adjustments and other assets received in satisfaction of debt.*

BNY 71

------

**Notes to Consolidated Financial Statements** (continued)<br>

*Estimated fair value of financial instruments*

The following tables present the estimated fair value and the carrying amount of financial instruments not carried at fair value on the consolidated balance sheet at March 31, 2026 and Dec. 31, 2025, by caption on the consolidated balance sheet and by the valuation hierarchy.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| **Summary of financial instruments**<br>*(in millions)* | Level 1 | Level 2 | Level 3 | Total<br>estimated<br>fair value | Carrying<br>amount |
| **Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;Interest-bearing deposits with the Federal Reserve and other central banks  | $— | $170202 | $— | $170202 | $170202 |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits with banks |  | 13546 |  | 13546 | 13544 |
| &nbsp;&nbsp;&nbsp;Federal funds sold and securities purchased under resale agreements |  | 43660 |  | 43660 | 43660 |
| &nbsp;&nbsp;&nbsp;Securities held-to-maturity | 9559 | 36385 |  | 45944 | 48830 |
| &nbsp;&nbsp;Loans *(a)* |  | 100163 |  | 100163 | 100933 |
| &nbsp;&nbsp;&nbsp;Other financial assets | 6390 | 2508 |  | 8898 | 8898 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $**15949** | $**366464** | $**—** | $**382413** | $**386067** |
| **Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Noninterest-bearing deposits | $— | $127669 | $— | $127669 | $127669 |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits |  | 283275 |  | 283275 | 289411 |
| &nbsp;&nbsp;&nbsp;Federal funds purchased and securities sold under repurchase agreements |  | 19506 |  | 19506 | 19506 |
| &nbsp;&nbsp;&nbsp;Payables to customers and broker-dealers |  | 24754 |  | 24754 | 24754 |
| &nbsp;&nbsp;&nbsp;Commercial paper |  | 1002 |  | 1002 | 1002 |
| &nbsp;&nbsp;&nbsp;Borrowings |  | 1037 |  | 1037 | 1037 |
| &nbsp;&nbsp;&nbsp;Long-term debt |  | 32629 |  | 32629 | 32582 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $**—** | $**489872** | $**—** | $**489872** | $**495961** |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Does not include certain other loans.*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Summary of financial instruments** | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 |
| *(in millions)* | Level 1 | Level 2 | Level 3 | Total estimated<br>fair value | Carrying<br>amount |
| **Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;Interest-bearing deposits with the Federal Reserve and other central banks  | $— | $116009 | $— | $116009 | $116009 |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits with banks |  | 10398 |  | 10398 | 10397 |
| &nbsp;&nbsp;&nbsp;Federal funds sold and securities purchased under resale agreements |  | 44892 |  | 44892 | 44892 |
| &nbsp;&nbsp;&nbsp;Securities held-to-maturity | 10014 | 35363 |  | 45377 | 48094 |
| &nbsp;&nbsp;Loans *(a)* |  | 79418 |  | 79418 | 80278 |
| &nbsp;&nbsp;&nbsp;Other financial assets | 5111 | 2449 |  | 7560 | 7560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $15125 | $288529 | $— | $303654 | $307230 |
| **Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Noninterest-bearing deposits | $— | $59979 | $— | $59979 | $59979 |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits |  | 265730 |  | 265730 | 271915 |
| &nbsp;&nbsp;&nbsp;Federal funds purchased and securities sold under repurchase agreements |  | 18992 |  | 18992 | 18992 |
| &nbsp;&nbsp;&nbsp;Payables to customers and broker-dealers |  | 21872 |  | 21872 | 21872 |
| &nbsp;&nbsp;&nbsp;Commercial paper |  | 2003 |  | 2003 | 2003 |
| &nbsp;&nbsp;&nbsp;Borrowings |  | 1191 |  | 1191 | 1191 |
| &nbsp;&nbsp;&nbsp;Long-term debt |  | 32256 |  | 32256 | 31873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $— | $402023 | $— | $402023 | $407825 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Does not include certain other loans.*

72 BNY

------

**Notes to Consolidated Financial Statements** (continued)<br>

**Note 13–Fair value option**

We elected fair value as an alternative measurement for selected financial assets and liabilities that are not otherwise required to be measured at fair value, including the assets and liabilities of consolidated investment management funds and subordinated notes associated with certain equity investments.

The following table presents the assets and liabilities of consolidated investment management funds, at fair value.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Assets and liabilities of consolidated investment** <br>**management funds, at fair value** | &nbsp;&nbsp;**Assets and liabilities of consolidated investment** <br>**management funds, at fair value** | |
|  | **March 31, 2026** | Dec. 31, 2025 |
| *(in millions)* | **March 31, 2026** | Dec. 31, 2025 |
| Assets of consolidated investment management funds: |  |  |
| &nbsp;&nbsp;&nbsp;Trading assets | $**935** | $841 |
| &nbsp;&nbsp;&nbsp;Other assets | **24** | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets of consolidated investment management funds | $**959** | $864 |
| Liabilities of consolidated investment management funds: |  |  |
| &nbsp;&nbsp;&nbsp;Other liabilities | $**7** | $1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities of consolidated investment management funds | $**7** | $1 |

---

The assets and liabilities of the consolidated investment management funds are included in other assets and other liabilities, respectively, on the consolidated balance sheet. We value the assets and liabilities of consolidated investment management funds using quoted prices for identical assets or liabilities in active markets or observable inputs such as quoted prices for similar assets or liabilities. Quoted prices for either identical or similar assets or liabilities in inactive markets may also be used. Accordingly, fair value best reflects the interests BNY holds in the economic performance of the consolidated investment management funds. Changes in the fair value of the assets and liabilities are recorded as income (loss) from consolidated investment management funds, which is included in investment and other revenue on the consolidated income statement.

We elected the fair value option on subordinated notes associated with certain equity investments. The fair value of these subordinated notes was $8 million at March 31, 2026 and $9 million at Dec. 31, 2025, and are included in other assets on the consolidated balance sheet. The subordinated notes were valued

using observable market inputs and included in Level 2 of the valuation hierarchy.

**Note 14–Derivative instruments**

We use derivatives to manage exposure to market risk, including interest rate risk, equity price risk and foreign currency risk, as well as credit risk. Our trading activities are focused on acting as a market-maker for our customers and facilitating customer trades in compliance with the Volcker Rule.

The notional amounts for derivative financial instruments express the dollar volume of the transactions; however, credit risk is much smaller. We perform credit reviews and enter into netting agreements and collateral arrangements to minimize the credit risk of derivative financial instruments. We enter into offsetting positions to reduce exposure to foreign currency, interest rate and equity price risk.

Use of derivative financial instruments involves reliance on counterparties. Failure of a counterparty to honor its obligation under a derivative contract is a risk we assume whenever we engage in a derivative contract. There were no counterparty default losses recorded in the first quarter of 2026.

*Hedging derivatives*

We utilize interest rate swap agreements, including forward starting swaps, to manage our exposure to interest rate fluctuations. We enter into fair value hedges as an interest rate risk management strategy to reduce fair value variability by converting certain fixed rate interest payments associated with available-for-sale securities, loans and long-term debt to floating interest rates. We also utilize interest rate swaps and forward exchange contracts as cash flow hedges to manage our exposure to interest rate and foreign exchange rate changes. In designating interest rate swaps as hedges, we utilize both partial-term and full-term hedge strategies. In addition, the Company utilizes portfolio layer method hedge strategies to manage interest rate risk of certain closed portfolios of fixed rate securities and loans. Throughout the period of a portfolio layer method hedge, basis adjustments are maintained at the portfolio level and are only allocated to individual assets in certain circumstances. These include instances in which the hedged portfolio amount falls below the designated hedged layer notional amount, or in instances of voluntary de-designation.

BNY 73

------

**Notes to Consolidated Financial Statements** (continued)<br>

The available-for-sale securities hedged consist of U.S. Treasury, U.S. government agency, agency and non-agency commercial MBS, agency and non-agency RMBS, non-U.S. government and foreign covered bonds. At March 31, 2026, $55.6 billion designated par value of available-for-sale securities were hedged with interest rate swaps designated as fair value hedges that had notional values of $55.4 billion.

At March 31, 2026, $1.4 billion of interest rate swaps were designated as portfolio layer method fair value hedges of loans against a closed portfolio of fixed rate loans of $2.9 billion, essentially converting $1.4 billion of fixed rate loans to floating rates.

The Company also utilizes interest rate swaps as a cash flow hedge to convert floating interest receipts to a fixed rate. At March 31, 2026, $2.4 billion of interest rate swaps, with terms of less than three years, were designated as cash flow hedges of loans and securities. For qualifying cash flow hedges, changes in the derivative fair value are recorded in OCI and then transferred to earnings in the period in which the hedged forecasted transaction impacts earnings. In the first quarter of 2026 and first quarter of 2025, the Company did not experience any hedged forecasted transactions that failed to occur. Over the next 12 months, we expect that $6 million of net after-tax losses in OCI will be reclassified to net interest income associated with cash flow hedges.

At March 31, 2026, $29.9 billion par value of long-term debt was hedged with interest rate swaps

designated as fair value hedges that had notional values of $29.9 billion.

In addition, we utilize forward foreign exchange contracts as hedges to mitigate foreign exchange exposures. We use forward foreign exchange contracts as cash flow hedges to convert certain forecasted non-U.S. dollar revenue and expenses into U.S. dollars. We use forward foreign exchange contracts as cash flow hedges to hedge our foreign exchange exposure to currencies such as the Indian rupee, euro, Polish zloty, British pound, Singapore dollar and Hong Kong dollar used in revenue and expense transactions for entities that have the U.S. dollar as their functional currency. As of March 31, 2026, the hedged forecasted foreign currency transactions and designated forward foreign exchange contract hedges were $801 million (notional), with a net pre-tax gain of $26 million recorded in accumulated OCI. Over the next 12 months, a gain of $27 million will be reclassified into earnings.

Forward foreign exchange contracts are also used to hedge the value of our net investments in foreign subsidiaries. The derivatives employed are designated as hedges of changes in the value of our foreign investments due to exchange rates. The change in fair market value of these forward foreign exchange contracts is reported within foreign currency translation adjustments in shareholders' equity, net of tax. At March 31, 2026, forward foreign exchange contracts with notional amounts totaling $11.0 billion were designated as net investment hedges.

The following table presents the pre-tax gains (losses) related to our fair value hedging activities recognized in the consolidated income statement.

---

| | | | |
|:---|:---|:---|:---|
| **Income statement impact of fair value hedges** | **Income statement impact of fair value hedges** | | |
| *(in millions)* | Location of gains (losses) | **1Q26** | 1Q25 |
| Interest rate fair value hedges of available-for-sale securities |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative | Interest income | $**218** | $(398) |
| &nbsp;&nbsp;&nbsp;Hedged item | Interest income | **(218)** | 398 |
| Interest rate fair value hedges of long-term debt |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative | Interest expense | **(142)** | 411 |
| &nbsp;&nbsp;&nbsp;Hedged item | Interest expense | **142** | (411) |
| Interest rate fair value hedges of loans |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative | Interest income | **(5)** | (11) |
| &nbsp;&nbsp;&nbsp;Hedged item | Interest income | **5** | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) recognized in the consolidated income statement due to fair value hedging relationships |  | $**—** | $— |

---

74 BNY

------

**Notes to Consolidated Financial Statements** (continued)<br>

The following table presents the pre-tax impact of hedging derivatives used in net investment and cash flow hedging relationships.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Impact of derivative instruments used in net investment and cash flow hedging relationships** | **Impact of derivative instruments used in net investment and cash flow hedging relationships** | **Impact of derivative instruments used in net investment and cash flow hedging relationships** | **Impact of derivative instruments used in net investment and cash flow hedging relationships** | **Impact of derivative instruments used in net investment and cash flow hedging relationships** | **Impact of derivative instruments used in net investment and cash flow hedging relationships** |
| *(in millions)* | | | | | |
|  | Gain or (loss) recognized in accumulated OCI on derivatives | Gain or (loss) recognized in accumulated OCI on derivatives | Location of gain or (loss) reclassified from accumulated OCI into income | Gain or (loss) reclassified from accumulated OCI into income | Gain or (loss) reclassified from accumulated OCI into income |
|  | **1Q26** | 1Q25 | Location of gain or (loss) reclassified from accumulated OCI into income | **1Q26** | 1Q25 |
| **Net investment hedges** |  |  |  |  |  |
| &nbsp;&nbsp;FX contracts | $**222** | $(376) | Investment and other revenue | $**—** | $21 |
| **Cash flow hedges** |  |  |  |  |  |
| &nbsp;&nbsp;FX contracts | $**(16)** | $1 | Staff expense and investment and other revenue | $**(5)** | $(3) |
| &nbsp;&nbsp;Interest rate contracts | **(15)** |  | Net interest income | **(1)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $**(31)** | $1 |  | $**(6)** | $(3) |

---

The following table presents information on the hedged items in fair value hedging relationships.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Hedged items in fair value hedging relationships** | Carrying amount of hedged <br>asset or liability | Carrying amount of hedged <br>asset or liability | Hedge accounting basis adjustment increase (decrease) *(a)* | Hedge accounting basis adjustment increase (decrease) *(a)* |
|  | Carrying amount of hedged <br>asset or liability | Carrying amount of hedged <br>asset or liability | Hedge accounting basis adjustment increase (decrease) *(a)* | Hedge accounting basis adjustment increase (decrease) *(a)* |
| *(in millions)* | **March 31, 2026** | Dec. 31, 2025 | **March 31, 2026** | Dec. 31, 2025 |
| Available-for-sale securities *(b)* | $**52428** | $46420 | $**(1099)** | $(910) |
| Loans *(c)* | $**2891** | $2939 | $**(4)** | $(9) |
| Long-term debt | $**29483** | $28375 | $**(405)** | $(264) |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Includes $283 million and $332 million of basis adjustment decreases on discontinued hedges associated with available-for-sale securities at March 31, 2026 and Dec. 31, 2025, respectively, and $12 million and $10 million of basis adjustment increases on discontinued hedges associated with long-term debt at March 31, 2026 and Dec. 31, 2025, respectively.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;At March 31, 2026 and Dec. 31, 2025, the amortized cost of the available-for-sale securities included in closed portfolios subject to portfolio layer method hedging was $17.9 billion and $15.1 billion, respectively, of which the notional amount hedged was $11.9 billion and $8.9 billion, respectively. The cumulative basis adjustments for active hedging relationships associated with such hedges as of March 31, 2026 and Dec. 31, 2025 were a decrease of $58 million and an increase of $1 million, respectively.* 

*(c)&nbsp;&nbsp;&nbsp;&nbsp;At March 31, 2026 and Dec. 31, 2025, loans included in closed portfolios subject to portfolio layer method hedging were $2.9 billion and $2.9 billion, respectively, of which $1.4 billion and $1.4 billion, respectively, was designated as hedged. The cumulative basis adjustments for active hedging relationships associated with such hedges as of March 31, 2026 and Dec. 31, 2025 were a decrease of $4 million and $9 million, respectively.*

BNY 75

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**Notes to Consolidated Financial Statements** (continued)<br>

The following table summarizes the notional amount and carrying values of our total derivatives portfolio.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Impact of derivative instruments on the balance sheet** | Notional value | Notional value | Asset derivatives<br>fair value | Asset derivatives<br>fair value | Liability derivatives<br>fair value | Liability derivatives<br>fair value |
|  | **March 31, 2026** | Dec. 31, 2025 | **March 31, 2026** | Dec. 31, 2025 | **March 31, 2026** | Dec. 31, 2025 |
| *(in millions)* | **March 31, 2026** | Dec. 31, 2025 | **March 31, 2026** | Dec. 31, 2025 | **March 31, 2026** | Dec. 31, 2025 |
| **Derivatives designated as hedging instruments:** *(a)(b)* |  |  |  |  |  |  |
| Interest rate contracts | $**89126** | $74525 | $**302** | $305 | $**13** | $— |
| Foreign exchange contracts | **11847** | 11817 | **230** | 53 | **39** | 81 |
| &nbsp;&nbsp;&nbsp;Total derivatives designated as hedging instruments |  |  | $**532** | $358 | $**52** | $81 |
| **Derivatives not designated as hedging instruments:** *(b)(c)* |  |  |  |  |  |  |
| Interest rate contracts | $**210564** | $202299 | $**843** | $718 | $**964** | $973 |
| Foreign exchange contracts | **1486448** | 1131252 | **8812** | 5517 | **8724** | 5351 |
| Equity contracts | **6199** | 6366 | **310** | 21 | **18** | 44 |
| Credit contracts | **249** | 279 | **—** |  | **11** | 13 |
| &nbsp;&nbsp;&nbsp;Total derivatives not designated as hedging instruments |  |  | $**9965** | $6256 | $**9717** | $6381 |
| &nbsp;&nbsp;Total derivatives fair value *(d)* |  |  | $**10497** | $6614 | $**9769** | $6462 |
| &nbsp;&nbsp;Effect of master netting agreements *(e)* |  |  | **(6905)** | (5224) | **(7404)** | (3831) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value after effect of master netting agreements |  |  | $**3592** | $1390 | $**2365** | $2631 |

---

*(a)*&nbsp;&nbsp;&nbsp;&nbsp;*The fair value of asset derivatives and liability derivatives designated as hedging instruments is recorded as other assets and other liabilities, respectively, on the consolidated balance sheet.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;For settled-to-market derivatives at clearing organizations, cash collateral exchanged is deemed a settlement of the derivative on a daily basis. The gross fair value of derivative assets and liabilities has been reduced by these cash settlements.*

*(c)&nbsp;&nbsp;&nbsp;&nbsp;The fair value of asset derivatives and liability derivatives not designated as hedging instruments is recorded as trading assets and trading liabilities, respectively, on the consolidated balance sheet.*

*(d)*&nbsp;&nbsp;&nbsp;&nbsp;*Fair values are on a gross basis, before consideration of master netting agreements, as required by ASC 815, Derivatives and Hedging.*

*(e)&nbsp;&nbsp;&nbsp;&nbsp;Effect of master netting agreements includes cash collateral received and paid of $1,462 million and $1,961 million, respectively, at March 31, 2026, and $2,107 million and $714 million, respectively, at Dec. 31, 2025.*

*Trading activities (including trading derivatives)*

Our trading activities are focused on acting as a market-maker for our customers, facilitating customer trades and risk-mitigating economic hedging in compliance with the Volcker Rule. The change in the fair value of the derivatives utilized in our trading activities is recorded in foreign exchange revenue and investment and other revenue on the consolidated income statement.

The following table presents our foreign exchange revenue and other trading revenue.

---

| | | |
|:---|:---|:---|
| **Foreign exchange revenue and other trading revenue** | **Foreign exchange revenue and other trading revenue** | **Foreign exchange revenue and other trading revenue** |
| *(in millions)* | **1Q26** | 1Q25 |
| Foreign exchange revenue | $**232** | $156 |
| Other trading revenue | **94** | 71 |

---

Foreign exchange revenue includes income from purchasing and selling foreign currencies, currency forwards, futures and options as well as foreign currency remeasurement. Other trading revenue reflects results from trading in cash instruments, including fixed income and equity securities, and

trading and economic hedging activity with non-foreign exchange derivatives.

We also use derivative financial instruments as risk-mitigating economic hedges, which are not formally designated as accounting hedges. This includes hedging the foreign currency, interest rate or market risks inherent in some of our balance sheet exposures, such as seed capital investments and deposits, as well as certain investment management fee revenue streams. We also use total return swaps to economically hedge obligations arising from the Company's deferred compensation plan whereby the participants defer compensation and earn a return linked to the performance of investments they select. The gains or losses on these total return swaps are recorded in staff expense on the consolidated income statement. We recorded losses of $7 million in the first quarter of 2026 and $8 million in the first quarter of 2025.

We manage trading risk through a system of position limits, a value-at-risk ("VaR") methodology based on historical simulation and other market sensitivity measures. Risk is monitored and reported to senior management by a separate unit, independent from trading, on a daily basis. Based on certain

76 BNY

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**Notes to Consolidated Financial Statements** (continued)<br>

assumptions, the VaR methodology is designed to capture the potential overnight pre-tax dollar loss from adverse changes in fair values of all trading positions. The calculation assumes a one-day holding period, utilizes a 99% confidence level and incorporates non-linear product characteristics. The VaR model is one of several statistical models used to develop economic capital results, which are allocated to lines of business for computing risk-adjusted performance.

VaR methodology does not evaluate risk attributable to extraordinary financial, economic or other occurrences. As a result, the risk assessment process includes a number of stress scenarios based upon the risk factors in the portfolio and management's assessment of market conditions. Additional stress scenarios based upon historical market events are also performed. Stress tests may incorporate the impact of reduced market liquidity and the breakdown of historically observed correlations and extreme scenarios. VaR and other statistical measures, stress testing and sensitivity analysis are incorporated into other risk management materials.

*Counterparty credit risk and collateral*

We assess the credit risk of our counterparties through regular examination of their financial statements, confidential communication with the management of those counterparties and regular monitoring of publicly available credit rating information. This and other information are used to develop proprietary credit rating metrics used to assess credit quality.

Collateral requirements are determined after a comprehensive review of the credit quality of each counterparty. Collateral is generally held or pledged in the form of cash and/or highly liquid government securities. Collateral requirements are monitored and adjusted daily.

Additional disclosures concerning derivative financial instruments are provided in Note 12.

*Disclosure of contingent features in over-the-counter ("OTC") derivative instruments*

Certain OTC derivative contracts and/or collateral agreements contain credit risk-contingent features triggered upon a rating downgrade in which the counterparty has the right to request additional

collateral or the right to terminate the contracts in a net liability position.

The following table shows the aggregate fair value of OTC derivative contracts in net liability positions that contained credit risk-contingent features and the value of collateral that has been posted.

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | Dec. 31, 2025 |
|<br>*(in millions)* | **March 31, 2026** | Dec. 31, 2025 |
| Aggregate fair value of OTC derivatives in net liability positions *(a)* | $**1536** | $381 |
| Collateral posted | $**1949** | $1009 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Before consideration of cash collateral.*

The aggregate fair value of OTC derivative contracts containing credit risk-contingent features can fluctuate from quarter to quarter due to changes in market conditions, composition of counterparty trades, new business or changes to the contingent features.

The Bank of New York Mellon, our largest banking subsidiary, enters into the substantial majority of our OTC derivative contracts and/or collateral agreements. As such, the contingent features may be triggered if The Bank of New York Mellon's long-term issuer rating were downgraded.

The following table shows the fair value of contracts falling under early termination provisions that were in net liability positions for three key ratings triggers.

---

| | | |
|:---|:---|:---|
| **Potential close-out exposures (fair value)** *(a)* | **Potential close-out exposures (fair value)** *(a)* | |
|  | **March 31, 2026** | Dec. 31, 2025 |
| *(in millions)* | **March 31, 2026** | Dec. 31, 2025 |
| If The Bank of New York Mellon's rating changed to: *(b)* |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;A3/A- | $**13** | $61 |
| &nbsp;&nbsp;&nbsp;&nbsp;Baa2/BBB | $**366** | $252 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ba1/BB+ | $**1895** | $714 |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;The amounts represent potential total close-out values if The Bank of New York Mellon's long-term issuer rating were to immediately drop to the indicated levels, and do not reflect collateral posted.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Represents ratings by Moody's/S&P.*

If The Bank of New York Mellon's debt rating had fallen below investment grade on March 31, 2026 and Dec. 31, 2025, existing collateral arrangements would have required us to post additional collateral of $89 million and $76 million, respectively.

BNY 77

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**Notes to Consolidated Financial Statements** (continued)<br>

*Offsetting assets and liabilities*

The following tables present derivative instruments and financial instruments and their related offsets. There were no derivative instruments or financial instruments subject to a legally enforceable netting agreement for which we are not currently netting.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Offsetting of derivative assets and financial assets at March 31, 2026** | **Offsetting of derivative assets and financial assets at March 31, 2026** | **Offsetting of derivative assets and financial assets at March 31, 2026** | **Offsetting of derivative assets and financial assets at March 31, 2026** |  | Amount not offset on the balance sheet |  |
|  | Gross assets recognized | Amounts offset on the balance sheet |  | Net assets recognized on the balance sheet | Amount not offset on the balance sheet |  |
| *(in millions)* | Gross assets recognized | Amounts offset on the balance sheet | *(a)* | Net assets recognized on the balance sheet | Amount not offset on the balance sheet | Net amount |
| Derivatives subject to netting arrangements: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts | $**1002** | $**793** |  | $**209** | $**45** | $**164** |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts | **8501** | **5920** |  | **2581** | **122** | **2459** |
| &nbsp;&nbsp;&nbsp;Equity and other contracts | **287** | **192** |  | **95** | **—** | **95** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total derivatives subject to netting arrangements | **9790** | **6905** |  | **2885** | **167** | **2718** |
| Total derivatives not subject to netting arrangements | **707** | **—** |  | **707** | **—** | **707** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives | **10497** | **6905** |  | **3592** | **167** | **3425** |
| Reverse repurchase agreements | **279709** | **255171** | *(b)* | **24538** | **24499** | **39** |
| Securities borrowing | **30029** | **10907** |  | **19122** | **18529** | **593** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $**320235** | $**272983** |  | $**47252** | $**43195** | $**4057** |

---

*(a)*&nbsp;&nbsp;&nbsp;&nbsp;*Includes the effect of netting agreements and net cash collateral received. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions.*

*(b)*&nbsp;&nbsp;&nbsp;&nbsp;*Offsetting of reverse repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation ("FICC"), where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system.*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Offsetting of derivative assets and financial assets at Dec. 31, 2025** | **Offsetting of derivative assets and financial assets at Dec. 31, 2025** | **Offsetting of derivative assets and financial assets at Dec. 31, 2025** | **Offsetting of derivative assets and financial assets at Dec. 31, 2025** |  | Amount not offset on the balance sheet |  |
|  | Gross assets recognized | Amounts offset on the balance sheet |  | Net assets recognized on the balance sheet | Amount not offset on the balance sheet |  |
| *(in millions)* | Gross assets recognized | Amounts offset on the balance sheet | *(a)* | Net assets recognized on the balance sheet | Amount not offset on the balance sheet | Net amount |
| Derivatives subject to netting arrangements: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts | $874 | $685 |  | $189 | $68 | $121 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts | 5218 | 4523 |  | 695 | 102 | 593 |
| &nbsp;&nbsp;&nbsp;Equity and other contracts | 17 | 16 |  | 1 | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total derivatives subject to netting arrangements | 6109 | 5224 |  | 885 | 171 | 714 |
| Total derivatives not subject to netting arrangements | 505 |  |  | 505 |  | 505 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives | 6614 | 5224 |  | 1390 | 171 | 1219 |
| Reverse repurchase agreements | 281361 | 254532 | *(b)* | 26829 | 26807 | 22 |
| Securities borrowing | 26731 | 8668 |  | 18063 | 17381 | 682 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $314706 | $268424 |  | $46282 | $44359 | $1923 |

---

*(a)*&nbsp;&nbsp;&nbsp;&nbsp;*Includes the effect of netting agreements and net cash collateral received. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions.*

*(b)*&nbsp;&nbsp;&nbsp;&nbsp;*Offsetting of reverse repurchase agreements relates to our involvement in the FICC, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system.*

78 BNY

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**Notes to Consolidated Financial Statements** (continued)<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Offsetting of derivative liabilities and financial liabilities at March 31, 2026** | **Offsetting of derivative liabilities and financial liabilities at March 31, 2026** | **Offsetting of derivative liabilities and financial liabilities at March 31, 2026** | **Offsetting of derivative liabilities and financial liabilities at March 31, 2026** | Net liabilities recognized on the balance sheet |  |  |
|  | Gross liabilities recognized | Amounts offset on the balance sheet |  | Net liabilities recognized on the balance sheet | Amount not offset on the balance sheet |  |
| *(in millions)* | Gross liabilities recognized | Amounts offset on the balance sheet | *(a)* | Net liabilities recognized on the balance sheet | Amount not offset on the balance sheet | Net amount |
| Derivatives subject to netting arrangements: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts | $**774** | $**477** |  | $**297** | $**30** | $**267** |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts | **8332** | **6912** |  | **1420** | **387** | **1033** |
| &nbsp;&nbsp;&nbsp;Equity and other contracts | **15** | **15** |  | **—** | **—** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total derivatives subject to netting arrangements | **9121** | **7404** |  | **1717** | **417** | **1300** |
| Total derivatives not subject to netting arrangements | **648** | **—** |  | **648** | **—** | **648** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives | **9769** | **7404** |  | **2365** | **417** | **1948** |
| Repurchase agreements | **270126** | **255171** | *(b)* | **14955** | **14955** | **—** |
| Securities lending | **15458** | **10907** |  | **4551** | **4467** | **84** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $**295353** | $**273482** |  | $**21871** | $**19839** | $**2032** |

---

*(a)*&nbsp;&nbsp;&nbsp;&nbsp;*Includes the effect of netting agreements and net cash collateral paid. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions.*

*(b)*&nbsp;&nbsp;&nbsp;&nbsp;*Offsetting of repurchase agreements relates to our involvement in the FICC, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system.*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Offsetting of derivative liabilities and financial liabilities at Dec. 31, 2025** | **Offsetting of derivative liabilities and financial liabilities at Dec. 31, 2025** | **Offsetting of derivative liabilities and financial liabilities at Dec. 31, 2025** | **Offsetting of derivative liabilities and financial liabilities at Dec. 31, 2025** | Net liabilities recognized on the balance sheet |  |  |
|  | Gross liabilities recognized | Amounts offset on the balance sheet |  | Net liabilities recognized on the balance sheet | Amount not offset on the balance sheet |  |
| *(in millions)* | Gross liabilities recognized | Amounts offset on the balance sheet | *(a)* | Net liabilities recognized on the balance sheet | Amount not offset on the balance sheet | Net amount |
| Derivatives subject to netting arrangements: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts | $740 | $456 |  | $284 | $44 | $240 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts | 5040 | 3348 |  | 1692 | 79 | 1613 |
| &nbsp;&nbsp;&nbsp;Equity and other contracts | 31 | 27 |  | 4 | 3 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total derivatives subject to netting arrangements | 5811 | 3831 |  | 1980 | 126 | 1854 |
| Total derivatives not subject to netting arrangements | 651 |  |  | 651 |  | 651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives | 6462 | 3831 |  | 2631 | 126 | 2505 |
| Repurchase agreements | 269352 | 254532 | *(b)* | 14820 | 14820 |  |
| Securities lending | 12840 | 8668 |  | 4172 | 4005 | 167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $288654 | $267031 |  | $21623 | $18951 | $2672 |

---

*(a)*&nbsp;&nbsp;&nbsp;&nbsp;*Includes the effect of netting agreements and net cash collateral paid. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions.*

*(b)*&nbsp;&nbsp;&nbsp;&nbsp;*Offsetting of repurchase agreements relates to our involvement in the FICC, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system.*

BNY 79

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**Notes to Consolidated Financial Statements** (continued)<br>

*Secured borrowings*

The following table presents the contract value of repurchase agreements and securities lending transactions accounted for as secured borrowings by the type of collateral provided to counterparties.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Repurchase agreements and securities lending transactions accounted for as secured borrowings** | **Repurchase agreements and securities lending transactions accounted for as secured borrowings** | **Repurchase agreements and securities lending transactions accounted for as secured borrowings** | **Repurchase agreements and securities lending transactions accounted for as secured borrowings** | **Repurchase agreements and securities lending transactions accounted for as secured borrowings** | **Repurchase agreements and securities lending transactions accounted for as secured borrowings** | **Repurchase agreements and securities lending transactions accounted for as secured borrowings** | **Repurchase agreements and securities lending transactions accounted for as secured borrowings** | **Repurchase agreements and securities lending transactions accounted for as secured borrowings** | **Repurchase agreements and securities lending transactions accounted for as secured borrowings** | **Repurchase agreements and securities lending transactions accounted for as secured borrowings** |
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 | Dec. 31, 2025 |
|  | Remaining contractual maturity | Remaining contractual maturity | Remaining contractual maturity | Remaining contractual maturity | Total | Remaining contractual maturity | Remaining contractual maturity | Remaining contractual maturity | Remaining contractual maturity | Total |
| *(in millions)* | Overnight and continuous | Up to 30 days | 30-90 days | Over <br>90 days | Total | Overnight and continuous | Up to 30 days | 30-90 days | Over <br>90 days | Total |
| Repurchase agreements: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury | $**191031** | $**100** | $**1361** | $**1918** | $**194410** | $207600 | $475 | $1420 | $2101 | $211596 |
| &nbsp;&nbsp;&nbsp;Agency RMBS | **68591** | **150** | **236** | **270** | **69247** | 51130 | 136 | 237 | 441 | 51944 |
| &nbsp;&nbsp;&nbsp;Corporate bonds | **71** | **87** | **952** | **886** | **1996** | 119 | 55 | 1256 | 557 | 1987 |
| &nbsp;&nbsp;&nbsp;Sovereign debt/sovereign guaranteed | **861** | **111** | **122** | **—** | **1094** | 541 | 416 |  |  | 957 |
| &nbsp;&nbsp;&nbsp;State and political subdivisions | **30** | **17** | **268** | **531** | **846** | 17 | 25 | 361 | 328 | 731 |
| &nbsp;&nbsp;&nbsp;U.S. government agencies | **152** | **—** | **13** | **77** | **242** | 72 | 4 | 3 | 61 | 140 |
| &nbsp;&nbsp;&nbsp;Other debt securities | **247** | **291** | **201** | **104** | **843** | 71 | 370 | 246 | 136 | 823 |
| &nbsp;&nbsp;&nbsp;Equity securities | **—** | **9** | **869** | **570** | **1448** |  | 15 | 628 | 531 | 1174 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $**260983** | $**765** | $**4022** | $**4356** | $**270126** | $259550 | $1496 | $4151 | $4155 | $269352 |
| Securities lending: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury | $**1304** | $**—** | $**—** | $**—** | $**1304** | $754 | $— | $— | $— | $754 |
| &nbsp;&nbsp;&nbsp;Corporate bonds | **725** | **—** | **—** | **—** | **725** | 783 |  |  |  | 783 |
| &nbsp;&nbsp;&nbsp;Agency RMBS | **56** | **—** | **—** | **—** | **56** | 102 |  |  |  | 102 |
| &nbsp;&nbsp;&nbsp;U.S. government agencies | **17** | **—** | **—** | **—** | **17** | 2 |  |  |  | 2 |
| &nbsp;&nbsp;&nbsp;Equity securities | **13356** | **—** | **—** | **—** | **13356** | 11199 |  |  |  | 11199 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $**15458** | $**—** | $**—** | $**—** | $**15458** | $12840 | $— | $— | $— | $12840 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total secured borrowings | $**276441** | $**765** | $**4022** | $**4356** | $**285584** | $272390 | $1496 | $4151 | $4155 | $282192 |

---

BNY's repurchase agreements and securities lending transactions primarily encounter risk associated with liquidity. We are required to pledge collateral based on predetermined terms within the agreements. If we were to experience a decline in the fair value of the collateral pledged for these transactions, we could be required to provide additional collateral to the counterparty, therefore decreasing the amount of assets available for other liquidity needs that may arise. BNY also offers tri-party collateral agency services in the tri-party repo market where we are exposed to credit risk. In order to mitigate this risk, we require dealers to fully secure intraday credit.

**Note 15–Commitments and contingent liabilities**

*Off-balance sheet arrangements*

In the normal course of business, various commitments and contingent liabilities are outstanding that are not reflected in the accompanying consolidated balance sheets.

Our significant trading and off-balance sheet risks are securities, foreign currency and interest rate risk management products, commercial lending commitments, letters of credit and securities lending indemnifications. We assume these risks to reduce interest rate and foreign currency risks, to provide customers with the ability to meet credit and liquidity needs and to hedge foreign currency and interest rate risks. These items involve, to varying degrees, credit, foreign currency and interest rate risks not recognized on the balance sheet. Our off-balance sheet risks are managed and monitored in manners similar to those used for on-balance sheet risks.

80 BNY

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**Notes to Consolidated Financial Statements** (continued)<br>

The following table presents a summary of our off-balance sheet credit risks.

---

| | | |
|:---|:---|:---|
| **Off-balance sheet credit risks** | **March 31, 2026** | Dec. 31, 2025 |
| *(in millions)* | **March 31, 2026** | Dec. 31, 2025 |
| Lending commitments | $**47783** | $49433 |
| Standby letters of credit ("SBLC") *(a)* | **1571** | 1659 |
| Commercial letters of credit | **28** | 78 |
| &nbsp;&nbsp;Securities lending <br>indemnifications *(b)(c)* | **699472** | 666395 |

---

*(a)Net of participations totaling $103 million at March 31, 2026 and $111 million at Dec. 31, 2025.* 

*(b)Excludes the indemnification for securities for which BNY acts as an agent on behalf of CIBC Mellon clients, which totaled $73 billion at March 31, 2026 and $74 billion at Dec. 31, 2025.* 

*(c)Includes cash collateral, invested in indemnified repurchase agreements, held by us as securities lending agent of $73 billion at March 31, 2026 and $65 billion at Dec. 31, 2025.* 

The total potential loss on undrawn lending commitments, standby and commercial letters of credit and securities lending indemnifications is equal to the total notional amount if drawn upon, which does not consider the value of any collateral.

Since many of the lending commitments are expected to expire without being drawn upon, the total amount does not necessarily represent future cash requirements. A summary of lending commitment maturities is as follows: $26.3 billion in less than one year, $20.9 billion in one to five years and $584 million in over five years.

SBLCs principally support obligations of corporate clients and were collateralized with cash and securities of $74 million at March 31, 2026 and $212 million at Dec. 31, 2025. At March 31, 2026, $1.2 billion of the SBLCs will expire within one year, $415 million in one to five years and none in over five years.

We must recognize, at the inception of an SBLC and foreign and other guarantees, a liability for the fair value of the obligation undertaken in issuing the guarantee. The fair value of the liability, which was recorded with a corresponding asset in other assets, was estimated as the present value of contractual customer fees. The estimated liability for losses related to SBLCs and foreign and other guarantees, if any, is included in the allowance for lending-related commitments.

Payment/performance risk of SBLCs is monitored using both historical performance and internal ratings

criteria. BNY's historical experience is that SBLCs typically expire without being funded. SBLCs below investment grade are monitored closely for payment/performance risk. The table below shows SBLCs by investment grade:

---

| | | |
|:---|:---|:---|
| **Standby letters of credit** | **March 31, 2026** | Dec. 31, 2025 |
|  | **March 31, 2026** | Dec. 31, 2025 |
| Investment grade | **76%** | 78% |
| Non-investment grade | **24%** | 22% |

---

A commercial letter of credit is normally a short-term instrument used to finance a commercial contract for the shipment of goods from a seller to a buyer. Although the commercial letter of credit is contingent upon the satisfaction of specified conditions, it represents a credit exposure if the buyer defaults on the underlying transaction. As a result, the total contractual amounts do not necessarily represent future cash requirements. Commercial letters of credit totaled $28 million at March 31, 2026 and $78 million at Dec. 31, 2025.

We expect many of the lending commitments and letters of credit to expire without the need to advance any cash. The revenue associated with guarantees frequently depends on the credit rating of the obligor and the structure of the transaction, including collateral, if any. The allowance for lending-related commitments was $85 million at March 31, 2026 and $74 million at Dec. 31, 2025.

A securities lending transaction is a fully collateralized transaction in which the owner of a security agrees to lend the security (typically through an agent, in our case, The Bank of New York Mellon) to a borrower, usually a broker-dealer or bank, on an open, overnight or term basis, under the terms of a prearranged contract.

We typically lend securities with indemnification against borrower default. We generally require the borrower to provide collateral with a minimum value of 102% of the fair value of the securities borrowed, which is monitored on a daily basis, thus reducing credit risk. Market risk can also arise in securities lending transactions. These risks are controlled through policies limiting the level of risk that can be undertaken. Securities lending transactions are generally entered into only with highly rated counterparties. Securities lending indemnifications were secured by collateral of $741 billion at March 31, 2026 and $706 billion at Dec. 31, 2025.

BNY 81

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**Notes to Consolidated Financial Statements** (continued)<br>

CIBC Mellon, a joint venture between BNY and the Canadian Imperial Bank of Commerce ("CIBC"), engages in securities lending activities. BNY and CIBC severally indemnify securities lenders against specific types of borrower default. Previously, BNY, CIBC and CIBC Mellon jointly and severally indemnified securities lenders against specific types of borrower default. At March 31, 2026 and Dec. 31, 2025, $73 billion and $74 billion, respectively, of borrowings at CIBC Mellon, for which BNY acts as agent on behalf of CIBC Mellon clients, were secured by collateral of $77 billion and $78 billion, respectively. If, upon a default, a borrower's collateral was not sufficient to cover its related obligations, certain losses related to the indemnification could be covered by the indemnitors.

*Unsettled repurchase and reverse repurchase agreements*

In the normal course of business, we enter into repurchase agreements and reverse repurchase agreements that settle at a future date. In repurchase agreements, BNY receives cash from and provides securities as collateral to a counterparty at settlement. In reverse repurchase agreements, BNY advances cash to and receives securities as collateral from the counterparty at settlement. These transactions are recorded on the consolidated balance sheet on the settlement date. At March 31, 2026, we had no unsettled repurchase agreements and $93.9 billion of unsettled reverse repurchase agreements. At Dec. 31, 2025, we had no unsettled repurchase agreements and $71.9 billion of unsettled reverse repurchase agreements.

*Industry concentrations*

We have significant industry concentrations related to credit exposure at March 31, 2026. The tables below present our credit exposure in the financial institutions and commercial portfolios.

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Financial institutions**<br>**portfolio exposure**<br>*(in billions)* | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| &nbsp;&nbsp;**Financial institutions**<br>**portfolio exposure**<br>*(in billions)* | <br>Loans | Unfunded<br>commitments | Total exposure |
| Securities industry | $14.5 | $13 | $27.5 |
| Asset managers | 2.2 | 8.0 | 10.2 |
| Banks | 8.1 | 1.6 | 9.7 |
| Insurance |  | 4.2 | 4.2 |
| Government |  | 0.6 | 0.6 |
| Other | 0.7 | 1.0 | 1.7 |
| &nbsp;&nbsp;&nbsp;Total | $**25.5** | $**28.4** | $**53.9** |

---

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Commercial portfolio**<br>**exposure**<br>*(in billions)* | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| &nbsp;&nbsp;**Commercial portfolio**<br>**exposure**<br>*(in billions)* | <br>Loans | Unfunded<br>commitments | Total exposure |
| Manufacturing | $0.5 | $4.3 | $4.8 |
| Services and other | 0.8 | 3.7 | 4.5 |
| Energy and utilities | 0.1 | 4.4 | 4.5 |
| Media and telecom |  | 0.8 | 0.8 |
| &nbsp;&nbsp;&nbsp;Total | $**1.4** | $**13.2** | $**14.6** |

---

Major concentrations in securities lending are primarily to broker-dealers and are generally collateralized with cash and/or securities.

*Sponsored member repo program*

BNY is a sponsoring member in the FICC sponsored member program, where we submit eligible repurchase and reverse repurchase transactions in U.S. Treasury and agency securities ("Sponsored Member Transactions") between BNY and our sponsored member clients for novation and clearing through FICC pursuant to the FICC Government Securities Division rulebook (the "FICC Rules"). We also guarantee to FICC the prompt and full payment and performance of our sponsored member clients' respective obligations under the FICC Rules in connection with such clients' Sponsored Member Transactions. We minimize our credit exposure under this guaranty by obtaining a security interest in our sponsored member clients' collateral and rights under Sponsored Member Transactions. See "Offsetting assets and liabilities" in Note 14 for additional information on our repurchase and reverse repurchase agreements.

*Indemnification arrangements*

We have provided standard representations for underwriting agreements, acquisition and divestiture agreements, sales of loans and commitments, and other similar types of arrangements and customary indemnification for claims and legal proceedings related to providing financial services that are not otherwise included above. Insurance has been purchased to mitigate certain of these risks. Generally, there are no stated or notional amounts included in these indemnifications, and the contingencies triggering the obligation for indemnification are not expected to occur. Furthermore, often counterparties to these transactions provide us with comparable indemnifications. We are unable to develop an estimate of the maximum payout under these

82 BNY

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**Notes to Consolidated Financial Statements** (continued)<br>

indemnifications for several reasons. In addition to the lack of a stated or notional amount in a majority of such indemnifications, we are unable to predict the nature of events that would trigger indemnification or the level of indemnification for a certain event. We believe, however, that the possibility that we will have to make any material payments for these indemnifications is remote. At March 31, 2026 and Dec. 31, 2025, we have not recorded any material liabilities under these arrangements.

*Clearing and settlement exchanges*

We are a noncontrolling equity investor in, and/or member of, several industry clearing or settlement exchanges through which foreign exchange, securities, derivatives or other transactions settle. Certain of these industry clearing and settlement exchanges require their members to guarantee their obligations and liabilities and/or to provide liquidity support in the event other members do not honor their obligations. We believe the likelihood that a clearing or settlement exchange (of which we are a member) would become insolvent is remote. Additionally, certain settlement exchanges have implemented loss allocation policies that enable the exchange to allocate settlement losses to the members of the exchange. It is not possible to quantify such mark-to-market loss until the loss occurs. Any ancillary costs that occur as a result of any mark-to-market loss cannot be quantified. In addition, we also sponsor clients as members on clearing and settlement exchanges and guarantee their obligations. At March 31, 2026 and Dec. 31, 2025, we did not record any material liabilities under these arrangements.

*Legal proceedings* 

In the ordinary course of business, The Bank of New York Mellon Corporation and its subsidiaries are routinely named as defendants in or made parties to pending and potential legal actions. We also are subject to governmental and regulatory examinations, information-gathering requests, investigations and proceedings (both formal and informal). Claims for significant monetary damages are often asserted in many of these legal actions, while claims for disgorgement, restitution, penalties and/or other remedial actions or sanctions may be sought in governmental and regulatory matters. It is inherently difficult to predict the eventual outcomes of such matters given their complexity and the particular facts and circumstances at issue in each of these matters.

However, on the basis of our current knowledge and understanding, we do not believe that judgments, settlements or orders, if any, arising from these matters (either individually or in the aggregate, after giving effect to applicable reserves and insurance coverage) will have a material adverse effect on the consolidated financial position or liquidity of BNY, although they could have a material effect on our results of operations in a given period.

In view of the inherent unpredictability of outcomes in litigation and regulatory matters, particularly where (i) the damages sought are substantial or indeterminate, (ii) the proceedings are in the early stages, or (iii) the matters involve novel legal theories or a large number of parties, as a matter of course there is considerable uncertainty surrounding the timing or ultimate resolution of litigation and regulatory matters, including a possible eventual loss, fine, penalty or business impact, if any, associated with each such matter. In accordance with applicable accounting guidance, we establish accruals for litigation and regulatory matters when those matters proceed to a stage where they present loss contingencies that are both probable and reasonably estimable. In such cases, there may be a possible exposure to loss in excess of any amounts accrued. We regularly monitor such matters for developments that could affect the amount of the accrual, and will adjust the accrual amount as appropriate. If the loss contingency in question is not both probable and reasonably estimable, we do not establish an accrual and the matter continues to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. We believe that our accruals for legal proceedings are appropriate and, in the aggregate, are not material to the consolidated financial position of BNY, although future accruals could have a material effect on the results of operations in a given period. In addition, if we have the potential to recover a portion of an estimated loss from a third party, we record a receivable up to the amount of the accrual that is probable of recovery.

For certain of those matters described here for which a loss contingency may, in the future, be reasonably possible (whether in excess of a related accrued liability or where there is no accrued liability), BNY is currently unable to estimate a range of reasonably possible loss. For those matters described here where BNY is able to estimate a reasonably possible loss, the aggregate range of such reasonably possible loss

BNY 83

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**Notes to Consolidated Financial Statements** (continued)<br>

is up to $730 million in excess of the accrued liability (if any) related to those matters. For matters where a reasonably possible loss is denominated in a foreign currency, our estimate is adjusted quarterly based on prevailing exchange rates. We do not consider potential recoveries when estimating reasonably possible losses.

The following describes certain judicial, regulatory and arbitration proceedings involving BNY:

<u>Mortgage-Securitization Trusts Proceedings</u>

BNY has been named as a defendant in a number of legal actions brought by MBS investors alleging that the trustee has expansive duties under the governing agreements, including the duty to investigate and pursue breach of representation and warranty claims against other parties to the MBS transactions. Two actions commenced in December 2015 and February 2017 are pending in New York federal court. In New York state court, three actions are pending: two related cases commenced in September 2021 and October 2022, and one case commenced in December 2021.

<u>Matters Related to R. Allen Stanford</u>

In late December 2005, Pershing LLC became a clearing firm for Stanford Group Co. ("SGC"), a registered broker-dealer that was part of a group of entities ultimately controlled by R. Allen Stanford ("Stanford"). Stanford International Bank, also controlled by Stanford, issued certificates of deposit ("CDs"). Some investors allegedly wired funds from their SGC accounts to purchase CDs. In 2009, the Securities and Exchange Commission charged Stanford with operating a Ponzi scheme in connection with the sale of CDs, and SGC was placed into receivership. Alleged purchasers of CDs have filed two putative class action proceedings against Pershing LLC: one in November 2009 in Texas federal court, and one in May 2016 in New Jersey federal court. On Nov. 5, 2021, the court dismissed the class action filed in New Jersey. Both matters have concluded. Three lawsuits remain against Pershing LLC in Louisiana and New Jersey federal courts, which were filed in January 2010, October 2015 and May 2016. The purchasers allege that Pershing LLC, as SGC's clearing firm, assisted Stanford in a fraudulent scheme and assert contractual, statutory and common law claims. In March 2019, a group of investors filed a putative class action against The Bank of New York Mellon in New Jersey federal court, making the same

allegations as in the prior actions brought against Pershing LLC. On Nov. 12, 2021, the court dismissed the class action against The Bank of New York Mellon; on Dec. 15, 2022, an appeals court reversed the dismissal and returned the case to the trial court for further proceedings. On Aug. 5, 2025, the trial court denied plaintiffs' motion for class certification. On June 28, 2024, an unincorporated association that claims to represent the interests of Stanford investors filed a lawsuit in New Jersey federal court against The Bank of New York Mellon, making the same allegations as prior cases. All of the cases that have been brought in federal court have been consolidated in Texas federal court for discovery purposes. Various alleged Stanford CD purchasers asserted similar claims in Financial Industry Regulatory Authority, Inc. ("FINRA") arbitration proceedings and these are all resolved.

<u>Brazilian Postalis Litigation</u>

BNY Servicos Financeiros DTVM S.A. ("DTVM"), a subsidiary that provides asset services in Brazil, acts as administrator for certain investment funds in which a public pension fund for postal workers called Postalis-Instituto de Seguridade Social dos Correios e Telégrafos ("Postalis") invested. On Aug. 22, 2014, Postalis sued DTVM in Rio de Janeiro, Brazil for losses related to a Postalis fund for which DTVM is administrator. Postalis alleges that DTVM failed to properly perform duties, including to conduct due diligence of and exert control over the manager. On March 12, 2015, Postalis filed a lawsuit in Rio de Janeiro against DTVM and BNY Administração de Ativos Ltda. ("Ativos") alleging failure to properly perform duties relating to another fund of which DTVM is administrator and Ativos is manager. On April 7, 2025, the court found DTVM, Ativos and two other defendants jointly and severally liable for approximately $3 million. DTVM and Ativos appealed on Sept. 9, 2025, and the appeal was denied on March 19, 2026. On Dec. 14, 2015, Associacão dos Profissionais dos Correios ("ADCAP"), a Brazilian postal workers association, filed a lawsuit in São Paulo against DTVM and other defendants alleging that DTVM improperly contributed to Postalis investment losses. On March 20, 2017, the lawsuit was dismissed without prejudice, and ADCAP appealed. On Aug. 4, 2021, the appellate court overturned the dismissal and sent the lawsuit to a state lower court. On March 2, 2023, DTVM appealed the August 4 decision to Brazil's Superior Court of Justice. On Feb. 26, 2025, ADCAP filed a lawsuit in New York state court against The Bank of

84 BNY

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**Notes to Consolidated Financial Statements** (continued)<br>

New York Mellon Corporation, claiming that it is also liable for Postalis investment losses. On Feb. 27, 2025, we removed the lawsuit to New York federal court. On Dec. 17, 2015, Postalis filed three lawsuits in Rio de Janeiro against DTVM and Ativos alleging failure to properly perform duties with respect to investments in several other funds. On May 20, 2021, the court in one of those lawsuits entered a judgment of approximately $3 million against DTVM and Ativos. DTVM appealed and, on June 7, 2022, the appellate court partially granted and partially denied the appeal, reducing the judgment to approximately $2 million. On July 13, 2023, DTVM and Ativos filed a further appeal to Brazil's Superior Court of Justice, which was denied on Sept. 20, 2024. DTVM and Ativos further appealed, but their appeal was denied on Dec. 3, 2024. The judgment was paid and the lawsuit was closed on March 5, 2026. On Aug. 24, 2022, the court dismissed one of the other lawsuits. Postalis appealed that decision, but Postalis's appeal was denied on Oct. 24, 2023. Postalis further appealed; that further appeal was denied on Oct. 22, 2024. On Feb. 28, 2026, the court dismissed the third lawsuit. On Feb. 4, 2016, Postalis filed a lawsuit in Brasilia against DTVM, Ativos and BNY Alocação de Patrimônio Ltda. ("Alocação de Patrimônio"), an investment management subsidiary, alleging failure to properly perform duties and liability for losses with respect to investments in various funds of which the defendants were administrator and/or manager. On Jan. 16, 2018, the Brazilian Federal Prosecution Service filed a civil lawsuit in São Paulo against DTVM alleging liability for Postalis losses based on alleged failures to properly perform certain duties as administrator to certain funds in which Postalis invested or as controller of Postalis's own investment portfolio. On April 18, 2018, the court dismissed the lawsuit without prejudice. On Aug. 4, 2021, the appellate court overturned the dismissal and returned the lawsuit to the lower court. DTVM appealed, but that appeal was denied on Aug. 21, 2023. In addition, the Tribunal de Contas da União ("TCU"), an administrative tribunal, has initiated proceedings with the purpose of determining liability for losses to four investment funds administered by DTVM in which Postalis was an investor. On Sept. 9, 2020, TCU rendered a decision in one of the proceedings, finding DTVM and two former Postalis directors jointly and severally liable for approximately $50 million. TCU also imposed on DTVM a fine of approximately $2 million. DTVM's administrative appeal of the decision was denied. On Feb. 25, 2022, DTVM filed a lawsuit in Brazil federal court in Brasilia seeking annulment of TCU's decision and an injunction preventing TCU from enforcing the judgment. On Aug. 24, 2022, the Brazilian Federal Attorneys filed an action in Rio de Janeiro court seeking to enforce the fine portion of the judgment. On Nov. 8, 2022, the Brasilia federal court in the annulment action granted DTVM's request for an injunction, suspending the Sept. 9, 2020, TCU decision until the annulment action is decided. On July 30, 2025, TCU rendered a decision in another of the proceedings, finding DTVM, Ativos and former Postalis directors jointly and severally liable for approximately $185 million. On Sept. 15, 2025, DTVM and Ativos filed an administrative appeal. On Oct. 4, 2019, Postalis and another pension fund filed a request for arbitration in São Paulo against DTVM and Ativos alleging liability for losses to an investment fund for which DTVM was administrator and Ativos was manager. On March 26, 2021, DTVM and Ativos filed a lawsuit in São Paulo challenging the Arbitration Court's jurisdiction over the case. On Feb. 24, 2023, the São Paulo court annulled the Arbitration Court's decision that it had jurisdiction, and Postalis and the other pension fund appealed. On April 8, 2024, the appellate court reversed the São Paulo court's decision and found that the Arbitration Court did have jurisdiction. DTVM and Ativos appealed; that appeal was denied on April 8, 2024. DTVM and Ativos have further appealed. The arbitration continued during the further appeal, and on Sept. 29, 2025, the panel found DTVM and Ativos partially liable. On Oct. 25, 2019, Postalis filed a lawsuit in Rio de Janeiro against DTVM and Alocação de Patrimônio, alleging liability for losses in another fund for which DTVM was administrator and Alocação de Patrimônio and Ativos were managers. On May 9, 2022, the court found DTVM and Alocação de Patrimônio jointly and severally liable for approximately $20 million. On Aug. 12, 2022, DTVM and Alocação de Patrimônio appealed the decision. On April 30, 2024, the appeals court reversed the finding against DTVM and Alocação de Patrimônio. Postalis appealed that reversal and, on Oct. 3, 2024, its appeal was denied. Postalis has filed a further appeal. On June 19, 2020, a lawsuit was filed in federal court in Rio de Janeiro against DTVM, Postalis, and various other defendants alleging liability against DTVM for certain Postalis losses in an investment fund of which DTVM was administrator. On Feb. 10, 2021, Postalis and another pension fund served DTVM in a lawsuit filed in Rio de Janeiro, alleging liability for losses in another

BNY 85

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**Notes to Consolidated Financial Statements** (continued)<br>

investment fund for which DTVM was administrator and the other defendant was manager.

<u>German Tax Matters</u>

German authorities are investigating past "cum/ex" trading, which involved the purchase of equity securities on or shortly before the dividend date, but settled after that date, potentially resulting in an unwarranted refund of withholding tax. German authorities have taken the view that past cum/ex trading may have resulted in tax avoidance or evasion. European subsidiaries of BNY have been informed by German authorities about investigations into potential cum/ex trading by certain third-party investment funds, where one of the subsidiaries had acquired entities that served as depositary and/or fund manager for those third-party investment funds. We have received information requests from the authorities relating to pre-acquisition activity and are cooperating fully with those requests. In August 2019, the District Court of Bonn ordered that one of these subsidiaries be joined as a secondary party in connection with the prosecution of unrelated individual defendants. Trial commenced in September 2019. In March 2020, the court stated that it would refrain from taking action against the subsidiary in order to expedite the conclusion of the trial. The court convicted the unrelated individual defendants, and determined that the cum/ex trading activities of the relevant third-party investment funds were unlawful. In November and December 2020 and February 2023, we received secondary liability notices from the German tax authorities totaling approximately $150 million (at then-prevailing exchange rates) related to pre-acquisition activity in various funds for which the entities we acquired were depositary and/or fund manager. Substantially all of the secondary liability notices have been resolved. In connection with the acquisition of the subject entities, we obtained an indemnity for liabilities from the sellers that we have pursued as necessary.

<u>Off-Channel Business-Related Communications</u>

The Company responded to requests for information from the SEC and the Commodity Futures Trading Commission ("CFTC") concerning compliance with recordkeeping obligations relating to business communications transmitted on unapproved electronic communication platforms. SEC and CFTC have been conducting similar inquiries into recordkeeping practices at other financial institutions. On Aug. 14, 2024, the SEC issued an order under which the Company agreed to pay a $40 million

penalty and to certain undertakings to resolve the SEC matter. The fine has been paid, and the Company is complying with the other settlement terms. On Sept. 4, 2025, the CFTC issued an order under which the Company agreed to pay $500,000. The fine has been paid, and the Company is complying with the other settlement terms.

<u>Pershing LLC Rule 15c3-3 Matter</u>

The Company has been responding to investigative requests for information and records from the SEC concerning Pershing LLC's compliance with its obligations under SEC Rule 15c3-3, among other regulatory rules and statutes. The Company continues to cooperate with the inquiry.

<u>Lawsuits in the Russian Federation</u>

The Company is defending various lawsuits in Russian courts seeking to recover assets held by BNY but blocked by international sanctions laws. The Company also is a co-defendant in a lawsuit by the Deputy Prosecutor General of the Russian Federation seeking to recover $251 million that allegedly was improperly seized by Ukraine from BNY accounts in Ukraine for a subsidiary of PJSC Sberbank, a Russian bank. The Russian court issued a judgment against BNY and its co-defendants on Sept. 11, 2025, which BNY appealed on Oct. 13, 2025. In a related matter, a Russian bailiff has applied to a Russian court to collect from BNY part of a $513 million judgment that PJSC Sberbank obtained against its former subsidiary and various Ukraine agencies due to the seizure.

**Note 16–Business segments**

We have an internal information system that produces performance data along product and service lines for our three principal business segments and the Other segment. The primary products and services and types of revenue for our principal businesses and a description of the Other segment are presented in Note 23 of the Notes to Consolidated Financial Statements in our 2025 Annual Report.

*Business accounting principles*

Our business segment data has been determined on an internal management basis of accounting, rather than GAAP, which is used for consolidated financial reporting. These measurement principles are designed so that reported results of the businesses will track their economic performance.

86 BNY

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**Notes to Consolidated Financial Statements** (continued)<br>

Our business segments are consistent with the structure used by the Chief Executive Officer, our Chief Operating Decision Maker ("CODM"), to make key operating decisions and assess performance. Our CODM evaluates the business segments' operating performance primarily based on fee and other revenue, total revenue, income before income taxes, and pre-tax operating margin. The significant expense information regularly provided to and reviewed by the CODM is total noninterest expense. The CODM considers this information when evaluating the performance of each business segment and in making decisions about allocating capital and other resources to each business segment.

Business segment results are subject to reclassification when organizational changes are made, or for refinements in revenue and expense allocation methodologies. Refinements are typically reflected on a prospective basis. In the first quarter of 2026, we realigned clients in Managed Accounts Solutions from the Asset Servicing line of business in the Securities Services business segment to the Wealth Solutions (formerly Pershing) line of business in the Market and Wealth Services business segment. Prior period amounts were revised for comparability.

The accounting policies of the businesses are the same as those described in Note 1 of the Notes to Consolidated Financial Statements in our 2025 Annual Report.

The results of our business segments are presented and analyzed on an internal management reporting basis.

• Revenue amounts reflect fee and other revenue generated by each business and include revenue for services provided between the segments that are also provided to third parties. Fee and other revenue transferred between businesses under revenue transfer agreements is included within other fees in each segment.

• Revenues and expenses associated with specific client bases are included in those businesses. For example, foreign exchange activity associated with clients using custody products is included in the Securities Services segment.

• Net interest income is allocated to businesses based on the yields on the assets and liabilities generated by each business. We employ a funds transfer pricing system that matches funds with the specific assets and liabilities of each business based on their interest sensitivity and maturity characteristics.

• The provision for credit losses associated with the respective credit portfolios is reflected in each segment.

• Incentives expense related to restricted stock and restricted stock units is allocated to the segments.

• Support and other indirect expenses, including services provided between segments that are not provided to third parties or not subject to a revenue transfer agreement, are allocated to the businesses based on internally developed methodologies and reflected in noninterest expense.

• Recurring FDIC expense is allocated to the businesses based on average deposits generated within each business.

• Severance expense is recorded in the segments based on the business or function the impacted employees reside.

• Litigation expense is generally recorded in the business in which the charge occurs.

• Management of the investment securities portfolio is a shared service contained in the Other segment. As a result, gains and losses associated with the valuation of the investment securities portfolio are generally included in the Other segment.

• Client deposits serve as the primary funding source for our investment securities portfolio. We typically allocate all interest income to the businesses generating the deposits.

• Balance sheet assets and liabilities and their related income or expense are specifically assigned to each business. Segments with a net liability position have been allocated assets.

• Goodwill and intangible assets are reflected within individual businesses.

BNY 87

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**Notes to Consolidated Financial Statements** (continued)<br>

The following consolidating schedules present the contribution of our segments to our overall profitability.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **For the quarter ended March 31, 2026** | Securities<br>Services | Market and Wealth Services | Investment<br>and Wealth Management |  | Other | Consolidated |  |
| *(dollars in millions)* | Securities<br>Services | Market and Wealth Services | Investment<br>and Wealth Management |  | Other | Consolidated |  |
| Total fee and other revenue | $**1921** | $**1321** | $**772** | *(a)* | $**27** | $**4041** | *(a)* |
| Net interest income | **757** | **571** | **53** |  | **(11)** | **1370** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | **2678** | **1892** | **825** | *(a)* | **16** | **5411** | *(a)* |
| Provision for credit losses | **(11)** | **(6)** | **9** |  | **1** | **(7)** |  |
| Noninterest expense | **1648** | **937** | **726** |  | **89** | **3400** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before income taxes | $**1041** | $**961** | $**90** | *(a)* | $**(74)** | $**2018** | *(a)* |
| Pre-tax operating margin *(b)* | **39%** | **51%** | **11%** |  | **N/M** | **37%** |  |
| Average assets | $**218500** | $**147689** | $**27261** |  | $**68478** | $**461928** |  |

---

*(a)*&nbsp;&nbsp;&nbsp;&nbsp;*Total fee and other revenue, total revenue and income before income taxes are net of income (loss) attributable to noncontrolling interests related to consolidated investment management funds of $(2) million.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes divided by total revenue.*

*N/M – Not meaningful.*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **For the quarter ended March 31, 2025** | Securities<br>Services | Market and Wealth Services | Investment<br>and Wealth Management |  | Other | Consolidated |  |
| *(dollars in millions)* | Securities<br>Services | Market and Wealth Services | Investment<br>and Wealth Management |  | Other | Consolidated |  |
| Total fee and other revenue | $1658 | $1201 | $738 | *(a)* | $34 | $3631 | *(a)* |
| Net interest income (expense) | 630 | 497 | 41 |  | (9) | 1159 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 2288 | 1698 | 779 | *(a)* | 25 | 4790 | *(a)* |
| Provision for credit losses | 8 | 4 | 2 |  | 4 | 18 |  |
| Noninterest expense | 1569 | 881 | 714 |  | 88 | 3252 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before income taxes | $711 | $813 | $63 | *(a)* | $(67) | $1520 | *(a)* |
| Pre-tax operating margin *(b)* | 31% | 48% | 8% |  | N/M | 32% |  |
| Average assets | $194418 | $129727 | $26402 |  | $65297 | $415844 |  |

---

*(a)*&nbsp;&nbsp;&nbsp;&nbsp;*Total fee and other revenue, total revenue and income before income taxes are net of income (loss) attributable to noncontrolling interests related to consolidated investment management funds of $2 million.*

*(b)*&nbsp;&nbsp;&nbsp;&nbsp;*Income before income taxes divided by total revenue.*

*N/M – Not meaningful.*

**Note 17–Supplemental information to the Consolidated Statement of Cash Flows**

Non-cash investing and financing transactions that, appropriately, are not reflected in the consolidated statement of cash flows are listed below.

---

| | | |
|:---|:---|:---|
| **Non-cash investing and financing transactions** | Three months ended March 31, | Three months ended March 31, |
| *(in millions)* | **2026** | 2025 |
| Transfers from loans to other assets for other real estate owned | $**—** | $1 |
| Change in assets of consolidated investment management funds | **95** | 51 |
| Change in liabilities of consolidated investment management funds | **6** | 8 |
| Change in nonredeemable noncontrolling interests of consolidated investment management funds | **47** | 51 |
| Investment securities purchased not settled | **1076** | 102 |
| Premises and equipment/operating lease obligations | **113** | 7 |
| Excise tax on share repurchases | **2** | 2 |

---

88 BNY

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**Item 4. Controls and Procedures**

*Disclosure controls and procedures*

Our management, including the Chief Executive Officer and Chief Financial Officer, with participation by the members of the Disclosure Committee, has responsibility for ensuring that there is an adequate and effective process for establishing, maintaining, and evaluating disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in our SEC reports is timely recorded, processed, summarized and reported and that information required to be disclosed by BNY is accumulated and communicated to BNY's management to allow timely decisions regarding the required disclosure. In addition, our ethics hotline can also be used by employees and others for the anonymous communication of concerns about financial controls or reporting matters. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.

As of the end of the period covered by this report, an evaluation was carried out under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective.

*Changes in internal control over financial reporting*

In the ordinary course of business, we may routinely modify, upgrade or enhance our internal controls and procedures for financial reporting. There have not been any changes in our internal control over financial reporting as defined in Rule 13a-15(f) of the Exchange Act during the first quarter of 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

BNY 89

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**Forward-looking Statements**<br>

Some statements in this Quarterly Report are forward-looking. These include statements about the usefulness of Non-GAAP measures, the future results of BNY, our businesses, financial, liquidity and capital condition, results of operations, capital plans including dividends and repurchases, liquidity, risk and capital management and processes, human capital management (including related ambitions, objectives, aims and goals), strategic priorities and initiatives, innovation in products and services, artificial intelligence, acquisitions, related integration and divestiture activity, transition to a platforms operating model, efficiency savings, estimates (including those regarding expenses, interest rate and net interest income sensitivities, losses inherent in our credit portfolios and capital ratios), intentions (including those regarding our capital returns and expenses, including our investments in technology and pension expense), outlook (including those regarding our performance results, revenue, expenses, impacts of currency fluctuations, operating leverage, pre-tax margin, capital ratios and effective tax rate) and expectations (including those regarding products, nonperforming assets, legal proceedings and other contingencies, impacts of trends on our businesses, regulatory, technology, market, economic or accounting developments and the impacts of such developments on our businesses).

In this report, any other report, any press release or any written or oral statement that BNY or its executives may make, words, such as "estimate," "forecast," "project," "anticipate," "likely," "target," "expect," "intend," "continue," "seek," "believe," "plan," "goal," "could," "should," "would," "may," "might," "will," "strategy," "synergies," "opportunities," "trends," "momentum," "ambition," "aspiration," "objective," "aim," "future," "potentially," "outlook" and words of similar meaning, may signify forward-looking statements.

These forward-looking statements, and other forward-looking statements contained in other public disclosures of BNY, are not guarantees of future results or occurrences, are inherently uncertain and are based upon current beliefs and expectations of future events, many of which are, by their nature, difficult to predict, outside of our control and subject to change. By identifying these statements in this manner, we are alerting investors to the possibility that our actual results may differ, possibly materially, from the anticipated results expressed or implied in these forward-looking statements as a result of a

number of important factors, including those factors described in "Risk Factors" in our 2025 Annual Report, such as:

• errors or delays in our operational and transaction processing, or those of third parties, may materially adversely affect our business, financial condition, results of operations and reputation;

• a communications or technology disruption or failure within our infrastructure or the infrastructure of third parties that results in a loss of information, delays our ability to access information or impacts our ability to provide services to our clients may materially adversely affect our business, financial condition and results of operations;

• a cybersecurity incident directed at us or a third party could result in the theft, loss, disclosure, use or alteration of information, unauthorized or loss of access to information, or system or network failures. Any such incident could adversely impact our ability to conduct our businesses, damage our reputation and cause losses;

• the development and use of artificial intelligence present risks and challenges that may materially adversely impact our business;

• our risk management framework, policies and processes may not be effective in identifying or mitigating risk and reducing the potential for losses and any inadequacy or lapse in our risk management framework, policies and processes could expose us to unexpected losses that could materially adversely affect our results of operations and financial condition;

• limitations of the models we use to measure, monitor and manage risk could lead to unexpected losses and adverse business impacts;

• we are subject to extensive government rulemaking, policies, regulation and supervision that impact our operations. Changes to and introduction of new rules and regulations have compelled, and in the future may compel, us to change how we manage our businesses, which could have a material adverse effect on our business, financial condition and results of operations;

• regulatory or enforcement actions or litigation could materially adversely affect our results of operations or harm our businesses or reputation;

90 BNY

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**Forward-looking Statements** (continued)<br>

• our business may be adversely affected if we are unable to attract, retain, develop and motivate employees;

• a failure or circumvention of our controls, policies and procedures could have a material adverse effect on our business, financial condition, results of operations and reputation;

• weakness and volatility in financial markets and the economy generally may materially adversely affect our business, financial condition and results of operations;

• we are dependent on fee-based business for a substantial majority of our revenue and our fee-based revenues could be adversely affected by slowing market activity, weak financial markets, underperformance and/or negative trends in savings rates or in investment preferences;

• levels of and changes in interest rates have impacted, and will in the future continue to impact, our profitability and capital levels, at times adversely;

• we have experienced, and may continue to experience, unrealized or realized losses on securities related to volatile and illiquid market conditions, reducing our capital levels and/or earnings;

• the failure or perceived weakness of any of our significant clients or counterparties, many of whom are major financial institutions or sovereign entities, and our assumption of credit, counterparty and concentration risk, could expose us to credit losses and adversely affect our business;

• we could incur losses if our allowance for credit losses, including loan and lending-related commitment reserves, is inadequate or if our expectations of future economic conditions deteriorate;

• our business, financial condition and results of operations could be adversely affected if we do not effectively manage our liquidity;

• failure to satisfy regulatory standards, including "well capitalized" and "well managed" status or capital adequacy and liquidity rules more generally, could result in limitations on our activities and adversely affect our business and financial condition;

• the Parent is a non-operating holding company and, as a result, is dependent on dividends from its subsidiaries and extensions of credit from the IHC to meet its obligations, including with respect to its securities, and to provide funds for share repurchases, payment of income taxes and payment of dividends to its stockholders;

• our ability to return capital to shareholders is subject to the discretion of our Board of Directors and may be limited by U.S. banking laws and regulations, including those governing capital and capital planning, applicable provisions of Delaware law and our failure to pay full and timely dividends on our preferred stock;

• any material reduction in our credit ratings or the credit ratings of our principal bank subsidiaries, The Bank of New York Mellon, BNY Mellon, N.A. or The Bank of New York Mellon SA/NV, could increase the cost of funding and borrowing to us and our rated subsidiaries and have a material adverse effect on our business, financial condition and results of operations and on the value of the securities we issue;

• the application of our Title I preferred resolution strategy or resolution under the Title II orderly liquidation authority could adversely affect the Parent's liquidity and financial condition and the Parent's security holders;

• new lines of business, new products and services or transformational or strategic project initiatives subject us to new or additional risks, and the failure to implement these initiatives could affect our results of operations;

• our strategic transactions present risks and uncertainties and could have an adverse effect on our business, financial condition and results of operations;

• we may not realize some or all of the expected benefits of our transition to a platforms operating model;

• we are subject to competition in all aspects of our business, which could negatively affect our ability to maintain or increase our profitability;

• our businesses may be negatively affected by adverse events, publicity, government scrutiny or other reputational harm;

• impacts from geopolitical events, acts of terrorism, war, extreme weather and other natural disasters, pandemics and other similar events may

BNY 91

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**Forward-looking Statements** (continued)<br>

have a negative impact on our business and operations;

• differing expectations for sustainability-related initiatives across client segments and local markets could adversely affect our business, affect client activity levels, subject us to additional regulatory requirements and damage our reputation;

• tax law changes or challenges to our tax positions with respect to historical transactions may adversely affect our net income, effective tax rate and our overall results of operations and financial condition; and

• changes in accounting standards governing the preparation of our financial statements and future events could have a material impact on our reported financial condition, results of operations, cash flows and other financial data.

Investors should not place undue reliance on any forward-looking statement and should consider all risk factors discussed in the 2025 Annual Report and any subsequent reports filed with the SEC by BNY pursuant to the Exchange Act. All forward-looking statements speak only as of the date on which such statements are made, and BNY undertakes no obligation to update any statement to reflect events or circumstances after the date on which such forward-looking statement is made or to reflect the occurrence of unanticipated events. The contents of BNY's website or any other website referenced herein are not part of this report.

92 BNY

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**Part II – Other Information**<br>

**Item 1. <u>Legal Proceedings</u>.**

The information required by this Item is set forth in the "Legal proceedings" section in Note 15 of the Notes to Consolidated Financial Statements, which portion is incorporated herein by reference in response to this item.

**Item 2. <u>Unregistered Sales of Equity Securities and Use of Proceeds</u>.**

(c)&nbsp;&nbsp;&nbsp;&nbsp;The following table discloses repurchases of our common stock made in the first quarter of 2026. All of the Company's preferred stock outstanding has preference over the Company's common stock with respect to the payment of dividends.

*Issuer purchases of equity securities*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Share repurchases – first quarter of 2026** |  |  | Total shares <br>repurchased as<br> part of a publicly <br>announced plan <br>or program | Maximum approximate dollar value of shares that may yet be purchased under the publicly announced plans or programs at March 31, 2026 |  |
| *(dollars in millions, except per share amounts; common shares in thousands)* | Total shares<br>repurchased | Average price<br>per share | Total shares <br>repurchased as<br> part of a publicly <br>announced plan <br>or program | Maximum approximate dollar value of shares that may yet be purchased under the publicly announced plans or programs at March 31, 2026 |  |
| January 2026 | 1378 | $120.58 | 1378 | $1631 |  |
| February 2026 | 5702 | 118.86 | 5702 | 953 |  |
| March 2026 | 1177 | 118.26 | 1177 | 814 |  |
| &nbsp;&nbsp;**First quarter of 2026** *(a)* | **8257** | $**119.06** | **8257** | $**814** | *(b)* |

---

*(a)&nbsp;&nbsp;&nbsp;&nbsp;Includes 2.7 million shares repurchased at a purchase price of $312 million from employees, primarily in connection with the employees' payment of taxes upon the vesting of restricted stock. The average price per share of open market repurchases was $119.77.*

*(b)&nbsp;&nbsp;&nbsp;&nbsp;Represents the maximum value of the shares to be repurchased under the share repurchase plan announced in April 2024 and includes shares repurchased in connection with employee benefit plans.*

In April 2024, we announced a share repurchase authorization providing for the repurchase of $6.0 billion of common shares. In April 2026, we announced a new share repurchase authorization providing for the repurchase of $10.0 billion of common shares in addition to any remaining capacity under the existing April 2024 authorization.

Share repurchases may be executed through open market repurchases, in privately negotiated transactions or by other means, including through repurchase plans designed to comply with Rule 10b5-1 and other derivative, accelerated share repurchase and other structured transactions. The timing and exact amount of any common stock repurchases will depend on various factors, including market conditions and the common stock trading price; the Company's capital position, liquidity and financial performance; alternative uses of capital; and legal and regulatory limitations and considerations.

**Item 5. <u>Other Information</u>.**

(c)&nbsp;&nbsp;&nbsp;&nbsp;Certain of our officers or directors have made elections to participate in, and are participating in, our dividend reinvestment plan, employee stock purchase plan and 401(k) plan, and have made, and may from time to time make, elections to have shares withheld to cover withholding taxes or pay the exercise price of stock awards, which may be designed to satisfy the affirmative defense conditions of Rule 10b5-1 under the Exchange Act or may constitute non-Rule 10b5-1 trading arrangements (as defined in Item 408(c) of Regulation S-K).

**Item 6. <u>Exhibits</u>.**

The list of exhibits required to be filed as exhibits to this report appears below.

BNY 93

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**Index to Exhibits**<br>

---

| | | |
|:---|:---|:---|
| Exhibit | Description | Method of Filing |
| 3.1 | Restated Certificate of Incorporation of The Bank of New York Mellon Corporation. | <u>[Previously filed as Exhibit 3.1 to the Company's Current Report on Form 8-K (File No. 000-52710) on July 2, 2007, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1390777/000119312507147812/dex31.htm)</u> |
| 3.2 | Certificate of Amendment to The Bank of New York Mellon Corporation's Restated Certificate of Incorporation, as filed with the Secretary of State of the State of Delaware on April 9, 2019. | <u>[Previously filed as Exhibit 3.1 to the Company's Current Report on Form 8-K (File No. 001-35651) on April 10, 2019, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1390777/000119312519101829/d708098dex31.htm)</u> |
| 3.3 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series A Noncumulative Preferred Stock, dated June 15, 2007. | <u>[Previously filed as Exhibit 4.1 to the Company's Current Report on Form 8-K (File No. 000-52710) on July 5, 2007, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1390777/000119312507150128/dex41.htm)</u> |
| 3.4 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series F Noncumulative Perpetual Preferred Stock, dated July 29, 2016. | <u>[Previously filed as Exhibit 3.1 to the Company's Current Report on Form 8-K (File No. 001-35651) on Aug. 1, 2016, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1390777/000119312516666580/d198504dex31.htm)</u> |
| 3.5 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series H Noncumulative Perpetual Preferred Stock, dated Nov. 2, 2020. | <u>[Previously filed as Exhibit 3.1 to the Company's Current Report on Form 8-K (File No. 001-35651) on Nov. 3, 2020, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1390777/000119312520284812/d93160dex31.htm)</u> |
| 3.6 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series I Noncumulative Perpetual Preferred Stock, dated Nov. 16, 2021. | <u>[Previously filed as Exhibit 3.1 to the Company's Current Report on Form 8-K (File No. 001-35651) on Nov. 18, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1390777/000119312521333873/d267321dex31.htm)</u> |
| 3.7 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series J Noncumulative Perpetual Preferred Stock, dated March 7, 2025. | <u>[Previously filed as Exhibit 3.1 to the Company's Current Report on Form 8-K (File No. 001-35651) on March 10, 2025, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1390777/000119312525051003/d857326dex31.htm)</u> |
| 3.8 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series K Noncumulative Perpetual Preferred Stock, dated March 13, 2025. | <u>[Previously filed as Exhibit 3.1 to the Company's Current Report on Form 8-K (File No. 001-35651) on March 14, 2025, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1390777/000119312525054816/d860516dex31.htm)</u> |
| 3.9 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series L Noncumulative Perpetual Preferred Stock, dated Sept. 9, 2025. | <u>[Previously filed as Exhibit 3.1 to the Company's Current Report on Form 8-K (File No. 001-35651) on Sept. 10, 2025, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1390777/000119312525200101/d932260dex31.htm)</u> |
| 3.10 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series M Noncumulative Perpetual Preferred Stock, dated March 4, 2026. | <u>[Previously filed as Exhibit 3.1 to the Company's Current Report on Form 8-K (File No. 001-35651) on March 5, 2026, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1390777/000119312526094111/d83983dex31.htm)</u> |
| 3.11 | Amended and Restated By-Laws of The Bank of New York Mellon Corporation, as amended and restated on Oct. 31, 2025. | <u>[Previously filed as Exhibit 3.10 to the Company's Quarterly Report on Form 10-Q (File No. 001-35651) on Oct. 31, 2025, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1390777/000139077725000159/form10-q_ex310x3q25.htm)</u> |

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94 BNY

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**Index to Exhibits** (continued)<br>

---

| | | |
|:---|:---|:---|
| Exhibit | Description | Method of Filing |
| 4.1 | None of the instruments defining the rights of holders of long-term debt of the Parent or any of its subsidiaries represented long-term debt in excess of 10% of the total assets of the Company as of March 31, 2026. The Company hereby agrees to furnish to the Securities and Exchange Commission, upon request, a copy of any such instrument. | N/A |
| 22.1 | Subsidiary Issuer of Guaranteed Securities. | <u>[Previously filed as Exhibit 22.1 to the Company's Quarterly Report on Form 10-Q (File No. 001-35651) for the quarter ended March 31, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1390777/000139077721000046/form10-q_ex221x1q21.htm)</u> |
| 31.1 | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | <u>[Filed herewith.](form10-q_ex311x1q26.htm)</u> |
| 31.2 | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | <u>[Filed herewith.](form10-q_ex312x1q26.htm)</u> |
| 32.1 | Certification of the Chief Executive Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | <u>[Furnished herewith.](form10-q_ex321x1q26.htm)</u> |
| 32.2 | Certification of the Chief Financial Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | <u>[Furnished herewith.](form10-q_ex322x1q26.htm)</u> |
| 101.INS | Inline XBRL Instance Document. | The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. | Filed herewith. |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | Filed herewith. |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | Filed herewith. |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | Filed herewith. |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | Filed herewith. |
| 104 | The cover page of The Bank of New York Mellon Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted in inline XBRL. | The cover page interactive data file is embedded within the inline XBRL document and included in Exhibit 101. |

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BNY 95

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**SIGNATURE**

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.

 THE BANK OF NEW YORK MELLON CORPORATION <br> (Registrant)

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| | | |
|:---|:---|:---|
| Date: May 1, 2026 | By: | /s/ Kurtis R. Kurimsky |
|  |  | Kurtis R. Kurimsky |
|  |  | Corporate Controller |
|  |  | (Duly Authorized Officer and |
|  |  | Principal Accounting Officer of |
|  |  | the Registrant) |

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96 BNY

## Exhibit 31.1

**Exhibit 31.1** 

**CERTIFICATION**

I, Robin Vince, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The Bank of New York Mellon Corporation (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 1, 2026

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| |
|:---|
| /s/ Robin Vince |
| Name: Robin Vince |
| Title: Chief Executive Officer |

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## Exhibit 31.2

**Exhibit 31.2** 

**CERTIFICATION**

I, Dermot McDonogh, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The Bank of New York Mellon Corporation (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 1, 2026

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| |
|:---|
| /s/ Dermot McDonogh |
| Name: Dermot McDonogh |
| Title: Chief Financial Officer |

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## Exhibit 32.1

**Exhibit 32.1** 

**CERTIFICATION**

Pursuant to 18 U.S.C. Section 1350, the undersigned officer of The Bank of New York Mellon Corporation ("BNY"), hereby certifies, to his knowledge, that BNY's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of BNY.

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| | | |
|:---|:---|:---|
| Dated: May 1, 2026 | /s/ Robin Vince | /s/ Robin Vince |
| | Name: | Robin Vince |
| | Title: | Chief Executive Officer |

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The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

## Exhibit 32.2

**Exhibit 32.2** 

**CERTIFICATION**

Pursuant to 18 U.S.C. Section 1350, the undersigned officer of The Bank of New York Mellon Corporation ("BNY"), hereby certifies, to his knowledge, that BNY's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of BNY.

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| | | |
|:---|:---|:---|
| Dated: May 1, 2026 | /s/ Dermot McDonogh | /s/ Dermot McDonogh |
| | Name: | Dermot McDonogh |
| | Title: | Chief Financial Officer |

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The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

<br>