8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported) – February 28, 2003

MELLON FINANCIAL CORPORATION

(Exact name of registrant as specified in charter)

Pennsylvania (State or other jurisdiction of incorporation)	1-7410 (Commission File Number)	25-1233834 (I.R.S. Employer Identification No.)
	One Mellon Center 500 Grant Street Pittsburgh, Pennsylvania (Address of principal executive offices)	15258 (Zip code)

Registrant’s telephone number, including area code – (412) 234-5000

ITEM 7.    FINANCIAL STATEMENTS AND EXHIBITS

The following exhibit is filed herewith.

Exhibit Number	Description
99.1	Mellon Financial Corporation Business Sectors Financial Information and Financial Trends through Fourth Quarter 2002 (including as Appendix A and Appendix B Mellon Financial Corporation Business Sectors Financial Information and Financial Trends through Fourth Quarter 2002 in new GAAP format).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: February 28, 2003

MELLON FINANCIAL CORPORATION
By:	/s/   Michael A. Bryson
	Michael A. Bryson Chief Financial Officer

EXHIBIT INDEX

Number	Description	Method of Filing
99.1	Mellon Financial Corporation Business Sectors Financial Information and Financial Trends through Fourth Quarter 2002 (including as Appendix A and Appendix B Mellon Financial Corporation Business Sectors Financial Information and Financial Trends through Fourth Quarter 2002 in new GAAP format).	Filed herewith

EX-99.1

Exhibit 99.1

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

(dollar amounts in millions, averages in billions; presented on an FTE basis)	Institutional Asset Mgmt									Mutual Funds									Private Wealth Mgmt									Asset Servicing
	2002			2001			2000			2002			2001			2000			2002			2001			2000			2002			2001			2000
Trust fees	$	561		$	537		$	510		$	549		$	538		$	538		$	305		$	312		$	313		$	507		$	439		$	393
Other fee revenue		14			9			7			(5	)		3			24			15			15			11			127			159			145
Net interest revenue (expense)		(29	)		(13	)		(3	)		7			1			(8	)		208			165			125			96			125			108
Total revenue		546			533			514			551			542			554			528			492			449			730			723			646
Credit quality expense		—			—			—			—			—			—			—			1			1			—			—			—
Operating expense:
Amortization of goodwill		—			11			11			—			11			10			—			16			15			—			6			6
Other expense		474			386			343			339			328			326			277			254			233			538			451			395
Total operating expense		474			397			354			339			339			336			277			270			248			538			457			401
Income from continuing operations before taxes (benefits)		72			136			160			212			203			218			251			221			200			192			266			245
Income taxes (benefits)		27			53			62			85			82			89			89			82			76			68			95			89
Income (loss) from continuing operations		45			83			98			127			121			129			162			139			124			124			171			156
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	45		$	83		$	98		$	127		$	121		$	129		$	162		$	139		$	124		$	124		$	171		$	156
($ billions)
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	2.7		$	2.3		$	2.3		$	—		$	—		$	—
Average assets (c)	$	1.2		$	0.9		$	0.8		$	0.7		$	0.7		$	0.7		$	5.0		$	4.8		$	4.6		$	4.4		$	4.7		$	4.6
Average deposits	$	—		$	—		$	—		$	—		$	—		$	—		$	4.4		$	4.2		$	4.1		$	3.4		$	3.7		$	3.5
Average common equity	$	0.2		$	0.2		$	0.2		$	0.4		$	0.4		$	0.3		$	0.2		$	0.2		$	0.3		$	0.5		$	0.5		$	0.4
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under management at period end (in billions)	$	332		$	349		$	322		$	164		$	152		$	112		$	44		$	50		$	56		$	41		$	41		$	40
Market value of assets under administration or custody at period end (in billions)	$	13		$	6		$	—		$	—		$	—		$	—		$	18		$	21		$	33		$	2,129		$	2,029		$	2,202
Return on common equity		20	%		37	%		52	%		31	%		34	%		40	%		77	%		61	%		54	%		27	%		37	%		37	%
Pretax operating margin		13	%		26	%		31	%		38	%		38	%		39	%		48	%		45	%		45	%		26	%		37	%		38	%

(a) Results for 2000 and 2001 include the after-tax impact of the amortization of goodwill from purchase acquisitions. Refer to Appendix A for results excluding the after-tax impact of goodwill amortization.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 1

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

(dollar amounts in millions, averages in billions; presented on an FTE basis)	Human Resources Services									Treasury Services									Total Core Sectors									Other Activity									Consolidated Results
	2002			2001			2000			2002			2001			2000			2002			2001			2000			2002			2001			2000			2002			2001			2000
Trust fees	$	1,059		$	733		$	470		$	8		$	7		$	4		$	2,989		$	2,566		$	2,228		$	(1	)	$	(11	)	$	33		$	2,988		$	2,555		$	2,261
Other fee revenue (b)		28			—			2			362			349			302			541			535			491			195			(303	)		184			736			232			675
Net interest revenue (expense) (c)		(26	)		(12	)		(7	)		471			394			369			727			660			584			(105	)		(78	)		(29	)		622			582			555
Total revenue		1,061			721			465			841			750			675			4,257			3,761			3,303			89			(392	)		188			4,346			3,369			3,491
Credit quality expense		—			—			—			6			2			9			6			3			10			166			(7	)		(2	)		172			(4	)		8
Operating expense:
Amortization of goodwill		—			11			8			—			13			12			—			68			62			—			5			5			—			73			67
Other expense		1,004			669			440			475			441			402			3,107			2,529			2,139			19			48			55			3,126			2,577			2,194
Total operating expense		1,004			680			448			475			454			414			3,107			2,597			2,201			19			53			60			3,126			2,650			2,261
Income from continuing operations before taxes (benefits)		57			41			17			360			294			252			1,144			1,161			1,092			(96	)		(438	)		130			1,048			723			1,222
Income taxes (benefits) (d)		19			16			8			127			106			93			415			434			417			(34	)		(147	)		49			381			287			466
Income (loss) from continuing operations		38			25			9			233			188			159			729			727			675			(62	)		(291	)		81			667			436			756
Income from discontinued operations after-tax (e)		—			—			—			—			—			—			—			—			—			—			—			—			15			882			251
Net income (loss)	$	38		$	25		$	9		$	233		$	188		$	159		$	729		$	727		$	675		$	(62	)	$	(291	)	$	81		$	682		$	1,318		$	1,007
($ billions)
Average loans	$	—		$	—		$	—		$	5.3		$	5.6		$	6.6		$	8.0		$	7.9		$	8.9		$	1.4		$	1.9		$	1.8		$	9.4		$	9.8		$	10.7
Average assets (f)(g)	$	1.9		$	1.0		$	0.7		$	11.5		$	10.1		$	10.1		$	24.7		$	22.2		$	21.5		$	8.6		$	10.6		$	6.5		$	33.7		$	45.5		$	46.7
Average deposits	$	0.1		$	0.1		$	0.1		$	9.8		$	8.6		$	7.3		$	17.7		$	16.6		$	15.0		$	1.3		$	1.0		$	1.4		$	19.0		$	17.6		$	16.4
Average common equity	$	0.3		$	0.2		$	0.1		$	1.0		$	0.8		$	0.9		$	2.6		$	2.3		$	2.2		$	0.8		$	1.4		$	1.7		$	3.4		$	3.7		$	3.9
Average Tier I preferred equity	$	—		$	—		$	—		$	0.2		$	0.2		$	0.3		$	0.2		$	0.2		$	0.3		$	0.8		$	0.8		$	0.7		$	1.0		$	1.0		$	1.0
Market value of assets under management at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	581		$	592		$	530		$	—		$	—		$	—		$	581		$	592		$	530
Market value of assets under administration or custody at period end (in billions)	$	116		$	26		$	32		$	—		$	—		$	—		$	2,276		$	2,082		$	2,267		$	—		$	—		$	—		$	2,276		$	2,082		$	2,267
Return on common equity (h)		14	%		15	%		10	%		23	%		22	%		17	%		28	%		32	%		31	%		n/m			n/m			n/m			20	%		12	%		19	%
Pretax operating margin (h)		5	%		6	%		4	%		43	%		39	%		37	%		27	%		31	%		33	%		n/m			n/m			n/m			24	%		21	%		35	%

(a) Results for 2000 and 2001 include the after-tax impact of the amortization of goodwill from purchase acquisitions. Refer to Appendix A for results excluding the after-tax impact of goodwill amortization.

(b) Consolidated results include FTE impact of $43 million, $40 million and $34 million for 2002, 2001 and 2000, respectively.

(c) Consolidated results include FTE impact of $12 million, $8 million and $ 5 million for 2002, 2001 and 2000, respectively.

(d) Consolidated results include FTE impact of $55 million, $48 million and $39 million for 2002, 2001 and 2000 respectively.

(e) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(f) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

(g) Consolidated average assets includes average assets of discontinued operations of $.4 billion, $12.7 billion and $18.7 billion for 2002, 2001 and 2000 respectively.

(h) On a continuing operations basis.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursement as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifictions resulting from minor changes to be consistent with current period presentation.

Page 2

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

INSTITUTIONAL ASSET MANAGEMENT—12 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	131		$	114		$	124		$	141		$	124		$	122		$	129		$	162		$	150		$	136		$	129		$	146
Other fee revenue		1			2			3			1			(1	)		3			5			2			4			2			2			6
Net interest revenue (expense)		(2	)		(1	)		(1	)		1			(1	)		(1	)		(6	)		(5	)		(7	)		(7	)		(8	)		(7	)
Total revenue		130			115			126			143			122			124			128			159			147			131			123			145
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—			—
Operating expense:
Amortization of goodwill		3			3			3			2			3			3			2			3			—			—			—			—
Other expense		87			77			78			101			87			83			98			118			117			109			112			136
Total operating expense		90			80			81			103			90			86			100			121			117			109			112			136
Income from continuing operations before taxes (benefits)		40			35			45			40			32			38			28			38			30			22			11			9
Income taxes (benefits)		15			14			17			16			12			15			12			14			11			9			4			3
Income (loss) from continuing operations		25			21			28			24			20			23			16			24			19			13			7			6
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	25		$	21		$	28		$	24		$	20		$	23		$	16		$	24		$	19		$	13		$	7		$	6
($ billions)
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets (c)	$	0.8		$	0.8		$	0.8		$	0.7		$	0.7		$	0.8		$	1.0		$	1.1		$	1.2		$	1.2		$	1.3		$	1.3
Average deposits	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average common equity	$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under management at period end (in billions)	$	304		$	316		$	330		$	322		$	306		$	318		$	331		$	349		$	350		$	334		$	313		$	332
Market value of assets under administration or custody at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	6		$	7		$	7		$	7		$	13
Return on common equity		54	%		47	%		58	%		50	%		40	%		44	%		28	%		39	%		32	%		24	%		13	%		11	%
Pretax operating margin		31	%		31	%		36	%		28	%		27	%		30	%		22	%		24	%		20	%		17	%		9	%		6	%

(a) Results for 2000 and 2001 include the after-tax impact of the amortization of goodwill from purchase acquisitions. Refer to Appendix B for results excluding the after-tax impact of goodwill amortization.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 3

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

MUTUAL FUNDS—12 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	134		$	134		$	138		$	132		$	128		$	126		$	140		$	144		$	142		$	143		$	135		$	129
Other fee revenue		12			3			2			7			2			2			—			(1	)		(1	)		(1	)		(2	)		(1	)
Net interest revenue (expense)		(3	)		(2	)		(1	)		(2	)		(1	)		1			—			1			1			2			2			2
Total revenue		143			135			139			137			129			129			140			144			142			144			135			130
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—			—
Operating expense:
Amortization of goodwill		3			3			2			2			2			4			2			3			—			—			—			—
Other expense		81			84			82			79			79			73			84			92			84			86			83			86
Total operating expense		84			87			84			81			81			77			86			95			84			86			83			86
Income from continuing operations before taxes (benefits)		59			48			55			56			48			52			54			49			58			58			52			44
Income taxes (benefits)		24			19			23			23			20			21			22			19			24			23			22			16
Income (loss) from continuing operations		35			29			32			33			28			31			32			30			34			35			30			28
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	35		$	29		$	32		$	33		$	28		$	31		$	32		$	30		$	34		$	35		$	30		$	28
($ billions)
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets (c)	$	0.7		$	0.7		$	0.7		$	0.7		$	0.7		$	0.6		$	0.6		$	0.7		$	0.7		$	0.7		$	0.7		$	0.7
Average deposits	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average common equity	$	0.3		$	0.3		$	0.3		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under management at period end (in billions)	$	109		$	106		$	113		$	112		$	120		$	133		$	131		$	152		$	164		$	164		$	162		$	164
Market value of assets under administration or custody at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Return on common equity		46	%		36	%		39	%		39	%		34	%		36	%		34	%		33	%		36	%		34	%		29	%		26	%
Pretax operating margin		41	%		36	%		39	%		41	%		37	%		41	%		38	%		35	%		41	%		40	%		39	%		34	%

(a) Results for 2000 and 2001 include the after-tax impact of the amortization of goodwill from purchase acquisitions. Refer to Appendix B for results excluding the after-tax impact of goodwill amortization.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 4

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

PRIVATE WEALTH MANAGEMENT—12 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd  Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	74		$	76		$	78		$	85		$	81		$	81		$	80		$	70		$	80		$	79		$	75		$	71
Other fee revenue		2			3			4			2			3			3			2			7			3			2			4			6
Net interest revenue (expense)		28			32			32			33			34			38			44			49			54			54			52			48
Total revenue		104			111			114			120			118			122			126			126			137			135			131			125
Credit quality expense		—			—			1			—			—			—			—			1			1			—			(1	)		—
Operating expense:
Amortization of goodwill		3			4			4			4			4			3			5			4			—			—			—			—
Other expense		57			58			60			58			60			63			62			69			70			66			68			73
Total operating expense		60			62			64			62			64			66			67			73			70			66			68			73
Income from continuing operations before taxes (benefits)		44			49			49			58			54			56			59			52			66			69			64			52
Income taxes (benefits)		17			19			19			21			21			21			22			18			23			25			23			18
Income (loss) from continuing operations		27			30			30			37			33			35			37			34			43			44			41			34
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	27		$	30		$	30		$	37		$	33		$	35		$	37		$	34		$	43		$	44		$	41		$	34
($ billions)
Average loans	$	2.3		$	2.2		$	2.4		$	2.4		$	2.4		$	2.3		$	2.4		$	2.4		$	2.5		$	2.7		$	2.8		$	2.7
Average assets (c)	$	4.4		$	4.6		$	4.7		$	4.8		$	4.8		$	4.7		$	4.6		$	5.2		$	5.1		$	5.0		$	4.8		$	5.0
Average deposits	$	3.9		$	4.1		$	4.2		$	4.2		$	4.2		$	4.0		$	3.9		$	4.6		$	4.5		$	4.4		$	4.3		$	4.5
Average common equity	$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of total client assets at period end (in billions)	$	97		$	94		$	93		$	93		$	84		$	79		$	71		$	74		$	74		$	70		$	64		$	66
Return on common equity		50	%		53	%		51	%		60	%		59	%		63	%		66	%		59	%		84	%		82	%		78	%		65	%
Pretax operating margin		42	%		44	%		44	%		48	%		46	%		46	%		47	%		41	%		48	%		51	%		49	%		41	%

(a) Results for 2000 and 2001 include the after-tax impact of the amortization of goodwill from purchase acquisitions. Refer to Appendix B for results excluding the after-tax impact of goodwill amortization.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.  

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 5

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

ASSET SERVICING—12 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	95		$	101		$	100		$	97		$	106		$	115		$	103		$	115		$	122		$	134		$	128		$	123
Other fee revenue		44			36			32			33			43			41			37			38			30			34			37			26
Net interest revenue (expense)		22			26			29			31			31			28			31			35			28			24			23			21
Total revenue		161			163			161			161			180			184			171			188			180			192			188			170
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—			—
Operating expense:
Amortization of goodwill		2			1			1			2			1			2			1			2			—			—			—			—
Other expense		93			95			102			105			108			110			108			125			128			134			138			138
Total operating expense		95			96			103			107			109			112			109			127			128			134			138			138
Income from continuing operations before taxes (benefits)		66			67			58			54			71			72			62			61			52			58			50			32
Income taxes (benefits)		24			25			21			19			26			26			22			21			19			20			18			11
Income (loss) from continuing operations		42			42			37			35			45			46			40			40			33			38			32			21
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	42		$	42		$	37		$	35		$	45		$	46		$	40		$	40		$	33		$	38		$	32		$	21
($ billions)
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets (c)	$	4.1		$	4.7		$	4.7		$	4.8		$	5.0		$	4.4		$	4.7		$	4.6		$	4.2		$	4.4		$	4.7		$	4.5
Average deposits	$	3.2		$	3.5		$	3.5		$	3.7		$	3.9		$	3.3		$	3.8		$	3.7		$	3.2		$	3.4		$	3.4		$	3.4
Average common equity	$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.5		$	0.4		$	0.5		$	0.4		$	0.5
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under management at period end (in billions)	$	41		$	43		$	40		$	40		$	44		$	43		$	39		$	41		$	45		$	43		$	44		$	41
Market value of assets under administration or custody at period end (in billions)	$	2,215		$	2,213		$	2,256		$	2,202		$	2,193		$	2,243		$	2,030		$	2,029		$	2,162		$	2,066		$	2,071		$	2,129
Return on common equity		42	%		41	%		35	%		32	%		40	%		40	%		33	%		33	%		29	%		33	%		28	%		18	%
Pretax operating margin		41	%		41	%		36	%		34	%		39	%		39	%		36	%		32	%		29	%		30	%		26	%		19	%

(a) Results for 2000 and 2001 include the after-tax impact of the amortization of goodwill from purchase acquisitions. Refer to Appendix B for results excluding the after-tax impact of goodwill amortization.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m — not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 6

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

HUMAN RESOURCES SERVICES—12 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	105		$	119		$	115		$	131		$	181		$	193		$	179		$	180		$	279		$	275		$	240		$	265
Other fee revenue		1			1			—			—			(1	)		—			(2	)		3			1			4			17			6
Net interest revenue (expense)		(1	)		(2	)		(1	)		(3	)		(2	)		(4	)		(3	)		(3	)		(6	)		(6	)		(7	)		(7	)
Total revenue		105			118			114			128			178			189			174			180			274			273			250			264
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—			—
Operating expense:
Amortization of goodwill		1			2			2			3			2			4			3			2			—			—			—			—
Other expense		107			108			106			119			160			169			165			175			252			256			246			250
Total operating expense		108			110			108			122			162			173			168			177			252			256			246			250
Income from continuing operations before taxes (benefits)		(3	)		8			6			6			16			16			6			3			22			17			4			14
Income taxes (benefits)		(1	)		4			2			3			6			6			3			1			8			6			1			4
Income (loss) from continuing operations		(2	)		4			4			3			10			10			3			2			14			11			3			10
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	(2	)	$	4		$	4		$	3		$	10		$	10		$	3		$	2		$	14		$	11		$	3		$	10
($ billions)
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets (c)	$	0.7		$	0.7		$	0.7		$	0.7		$	0.9		$	0.9		$	0.9		$	1.2		$	1.7		$	1.7		$	2.0		$	2.0
Average deposits	$	0.2		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1
Average common equity	$	0.1		$	0.1		$	0.1		$	0.1		$	0.2		$	0.2		$	0.2		$	0.2		$	0.3		$	0.3		$	0.3		$	0.3
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under management at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under administration or custody at period end (in billions)	$	9		$	9		$	9		$	32		$	27		$	28		$	26		$	26		$	135		$	121		$	114		$	116
Return on common equity		n/m			24	%		18	%		11	%		23	%		25	%		9	%		4	%		21	%		16	%		4	%		15	%
Pretax operating margin		n/m			7	%		6	%		4	%		9	%		9	%		4	%		1	%		8	%		6	%		2	%		5	%

(a) Results for 2000 and 2001 include the after-tax impact of the amortization of goodwill from purchase acquisitions. Refer to Appendix B for results excluding the after-tax impact of goodwill amortization.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 7

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

TREASURY SERVICES—12 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	1		$	1		$	1		$	1		$	1		$	3		$	1		$	2		$	2		$	2		$	2		$	2
Other fee revenue		71			76			77			78			83			88			87			91			87			90			91			94
Net interest revenue (expense)		88			93			94			94			94			98			105			97			113			120			124			114
Total revenue		160			170			172			173			178			189			193			190			202			212			217			210
Credit quality expense		4			3			2			—			1			—			1			—			1			—			1			4
Operating expense:
Amortization of goodwill		3			3			3			3			4			2			3			4			—			—			—			—
Other expense		94			100			103			105			105			113			108			115			113			118			117			127
Total operating expense		97			103			106			108			109			115			111			119			113			118			117			127
Income from continuing operations before taxes (benefits)		59			64			64			65			68			74			81			71			88			94			99			79
Income taxes (benefits)		22			23			24			24			25			27			30			24			31			34			36			26
Income (loss) from continuing operations		37			41			40			41			43			47			51			47			57			60			63			53
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	37		$	41		$	40		$	41		$	43		$	47		$	51		$	47		$	57		$	60		$	63		$	53
($ billions)
Average loans	$	7.4		$	6.5		$	6.3		$	6.0		$	5.9		$	5.7		$	5.3		$	5.4		$	5.3		$	5.5		$	5.4		$	5.1
Average assets (c)	$	10.7		$	10.2		$	9.7		$	9.7		$	10.7		$	9.9		$	9.9		$	10.0		$	10.1		$	9.6		$	12.7		$	13.5
Average deposits	$	6.9		$	7.4		$	7.1		$	7.9		$	9.0		$	8.3		$	8.6		$	8.7		$	8.5		$	8.0		$	11.0		$	11.8
Average common equity	$	0.9		$	0.9		$	1.0		$	0.9		$	0.9		$	0.9		$	0.8		$	0.8		$	1.1		$	1.0		$	1.1		$	0.9
Average Tier I preferred equity	$	0.3		$	0.3		$	0.3		$	0.3		$	0.3		$	0.3		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2
Market value of assets under management at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under administration or custody at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Return on common equity		16	%		18	%		16	%		18	%		19	%		21	%		26	%		24	%		21	%		24	%		24	%		21	%
Pretax operating margin		37	%		38	%		37	%		38	%		39	%		39	%		42	%		37	%		44	%		45	%		45	%		37	%

(a) Results for 2000 and 2001 include the after-tax impact of the amortization of goodwill from purchase acquisitions. Refer to Appendix B for results excluding the after-tax impact of goodwill amortization.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 8

MELLON FINANCIAL CORPORATION

TOTAL CORE SECTORS (a)

TOTAL CORE SECTORS—12 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	540		$	545		$	556		$	587		$	621		$	640		$	632		$	673		$	775		$	769		$	709		$	736
Other fee revenue		131			121			118			121			129			137			129			140			124			131			149			137
Net interest revenue (expense)		132			146			152			154			155			160			171			174			183			187			186			171
Total revenue		803			812			826			862			905			937			932			987			1,082			1,087			1,044			1,044
Credit quality expense		4			3			3			—			1			—			1			1			2			—			—			4
Operating expense:
Amortization of goodwill		15			16			15			16			16			18			16			18			—			—			—			—
Other expense		519			522			531			567			599			611			625			694			764			769			764			810
Total operating expense		534			538			546			583			615			629			641			712			764			769			764			810
Income from continuing operations before taxes (benefits)		265			271			277			279			289			308			290			274			316			318			280			230
Income taxes (benefits)		101			104			106			106			110			116			111			97			116			117			104			78
Income (loss) from continuing operations		164			167			171			173			179			192			179			177			200			201			176			152
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	164		$	167		$	171		$	173		$	179		$	192		$	179		$	177		$	200		$	201		$	176		$	152
($ billions)
Average loans	$	9.7		$	8.7		$	8.7		$	8.4		$	8.3		$	8.0		$	7.7		$	7.8		$	7.8		$	8.2		$	8.2		$	7.8
Average assets (c)	$	21.4		$	21.7		$	21.3		$	21.4		$	22.8		$	21.3		$	21.7		$	22.8		$	23.0		$	22.6		$	26.2		$	27.0
Average deposits	$	14.2		$	15.1		$	14.9		$	15.9		$	17.2		$	15.7		$	16.4		$	17.1		$	16.3		$	15.9		$	18.8		$	19.8
Average common equity	$	2.1		$	2.1		$	2.2		$	2.2		$	2.3		$	2.3		$	2.2		$	2.3		$	2.6		$	2.6		$	2.6		$	2.5
Average Tier I preferred equity	$	0.3		$	0.3		$	0.3		$	0.3		$	0.3		$	0.3		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2
Market value of assets under management at period end (in billions)	$	511		$	521		$	540		$	530		$	520		$	546		$	547		$	592		$	610		$	588		$	562		$	581
Market value of assets under administration or custody at period end (in billions)	$	2,261		$	2,257		$	2,298		$	2,267		$	2,251		$	2,295		$	2,077		$	2,082		$	2,324		$	2,213		$	2,209		$	2,276
Return on common equity		31	%		32	%		31	%		31	%		31	%		33	%		32	%		31	%		31	%		31	%		27	%		24	%
Pretax operating margin		33	%		33	%		34	%		32	%		32	%		33	%		31	%		28	%		29	%		29	%		27	%		22	%

(a) Results for 2000 and 2001 include the after-tax impact of the amortization of goodwill from purchase acquisitions. Refer to Appendix B for results excluding the after-tax impact of goodwill amortization.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 9

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

OTHER ACTIVITY—12 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	24		$	12		$	(1	)	$	(2	)	$	(3	)	$	(2	)	$	(3	)	$	(3	)	$	—		$	(1	)	$	1		$	(1	)
Other fee revenue		52			46			47			39			40			(114	)		14			(243	)		54			36			34			71
Net interest revenue (expense)		1			(8	)		(10	)		(12	)		(13	)		(22	)		(23	)		(20	)		(25	)		(31	)		(27	)		(22	)
Total revenue		77			50			36			25			24			(138	)		(12	)		(266	)		29			4			8			48
Credit quality expense		(1	)		6			(11	)		4			(16	)		1			4			4			2			160			2			2
Operating expense:
Amortization of goodwill		2			—			2			1			2			—			2			1			—			—			—			—
Other expense		28			12			16			(1	)		6			(2	)		(18	)		62			8			(9	)		(8	)		28
Total operating expense		30			12			18			—			8			(2	)		(16	)		63			8			(9	)		(8	)		28
Income from continuing operations before taxes (benefits)		48			32			29			21			32			(137	)		—			(333	)		19			(147	)		14			18
Income taxes (benefits)		18			12			10			9			12			(47	)		—			(112	)		8			(52	)		4			6
Income (loss) from continuing operations		30			20			19			12			20			(90	)		—			(221	)		11			(95	)		10			12
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	30		$	20		$	19		$	12		$	20		$	(90	)		$—		$	(221	)	$	11		$	(95	)	$	10		$	12
($ billions)
Average loans	$	1.8		$	1.8		$	1.7		$	1.9		$	2.0		$	2.1		$	1.9		$	1.6		$	1.3		$	1.5		$	1.6		$	1.4
Average assets (c)	$	6.4		$	6.3		$	6.3		$	7.2		$	8.2		$	9.4		$	12.8		$	12.0		$	9.0		$	10.3		$	8.0		$	7.2
Average deposits	$	1.7		$	1.3		$	1.3		$	1.3		$	1.1		$	1.0		$	0.9		$	0.8		$	1.2		$	2.0		$	1.1		$	0.9
Average common equity	$	1.8		$	1.7		$	1.7		$	1.8		$	1.7		$	1.4		$	1.2		$	1.5		$	0.9		$	0.8		$	0.7		$	0.8
Average Tier I preferred equity	$	0.7		$	0.7		$	0.7		$	0.7		$	0.7		$	0.7		$	0.8		$	0.8		$	0.8		$	0.8		$	0.8		$	0.8
Market value of assets under management at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under administration or custody at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Return on common equity		n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m
Pretax operating margin		n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m

(a) Results for 2000 and 2001 include the after-tax impact of the amortization of goodwill from purchase acquisitions. Refer to Appendix B for results excluding the after-tax impact of goodwill amortization.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.  

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 10

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

CONSOLIDATED RESULTS—12 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	564		$	557		$	555		$	585		$	618		$	638		$	629		$	670		$	775		$	768		$	710		$	735
Other fee revenue		183			167			165			160			169			23			143			(103	)		178			167			183			208
Net interest revenue (expense)		133			138			142			142			142			138			148			154			158			156			159			149
Total revenue		880			862			862			887			929			799			920			721			1,111			1,091			1,052			1,092
Credit quality expense		3			9			(8	)		4			(15	)		1			5			5			4			160			2			6
Operating expense:
Amortization of goodwill		17			16			17			17			18			18			18			19			—			—			—			—
Other expense		547			534			547			566			605			609			607			756			772			760			756			838
Total operating expense		564			550			564			583			623			627			625			775			772			760			756			838
Income from continuing operations before taxes (benefits)		313			303			306			300			321			171			290			(59	)		335			171			294			248
Income taxes (benefits)		119			116			116			115			122			69			111			(15	)		124			65			108			84
Income (loss) from continuing operations		194			187			190			185			199			102			179			(44	)		211			106			186			164
Income (loss) from discontinued operations after-tax (b)		59			60			62			70			65			(47	)		13			851			5			3			5			2
Net income (loss)	$	253		$	247		$	252		$	255		$	264		$	55		$	192		$	807		$	216		$	109		$	191		$	166
($ billions)
Average loans	$	11.5		$	10.5		$	10.4		$	10.3		$	10.3		$	10.1		$	9.6		$	9.4		$	9.1		$	9.7		$	9.8		$	9.2
Average assets (c)(d)	$	47.2		$	46.9		$	46.1		$	46.7		$	48.2		$	45.8		$	45.5		$	42.5		$	33.0		$	33.4		$	34.2		$	34.2
Average deposits	$	15.9		$	16.4		$	16.2		$	17.2		$	18.3		$	16.7		$	17.3		$	17.9		$	17.5		$	17.9		$	19.9		$	20.7
Average common equity	$	3.9		$	3.8		$	3.9		$	4.0		$	4.0		$	3.7		$	3.4		$	3.8		$	3.5		$	3.4		$	3.3		$	3.3
Average Tier I preferred equity	$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0
Market value of assets under management at period end (in billions)	$	511		$	521		$	540		$	530		$	520		$	546		$	547		$	592		$	610		$	588		$	562		$	581
Market value of assets under administration or custody at period end (in billions)	$	2,261		$	2,257		$	2,298		$	2,267		$	2,251		$	2,295		$	2,077		$	2,082		$	2,324		$	2,213		$	2,209		$	2,276
Return on common equity (e)		20	%		20	%		19	%		18	%		20	%		11	%		21	%		n/m			25	%		13	%		23	%		19	%
Pretax operating margin (e)		36	%		35	%		36	%		34	%		35	%		21	%		32	%		n/m			30	%		16	%		28	%		23	%

(a) Results for 2000 and 2001 include the after-tax impact of the amortization of goodwill from purchase acquisitions. Refer to Appendix B for results excluding the after-tax impact of goodwill amortization.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

(d) Consolidated average assets includes average assets of discontinued operations of $1.0 billion, $.5 billion, $— billion and $— billion for the first, second, third and fourth quarter, respectively, of 2002;

$17.2 billion, $15.1 billion, $11.0 billion and $7.7 billion for the first, second, third and fourth quarter, respectively, of 2001; and

$19.4 billion, $18.9 billion, $18.5 billion and $18.1 billion for the first, second, third and fourth quarter, respectively, of 2000.

(e) On a continuing operations basis.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 11

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS—12 Quarter Trend

NONINTEREST REVENUE

(dollar amounts in millions unless otherwise noted)	2000 (a)												2001 (a)												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Investment management	$	321		$	307		$	325		$	345		$	324		$	332		$	345		$	374		$	370		$	355		$	340		$	349
Human resource services (b)		98			111			106			121			170			183			168			170			269			264			232			255
Institutional trust & custody		123			114			102			103			101			92			97			102			117			125			122			115
Securities lending revenue		22			25			22			16			23			31			19			24			19			24			16			16
Trust and investment fee revenue		564			557			555			585			618			638			629			670			775			768			710			735
Cash management revenue		45			52			52			53			53			61			62			63			68			71			72			74
Foreign exchange revenue		48			40			36			38			48			42			38			43			35			37			44			30
Securities trading revenue		3			1			7			5			7			5			1			10			4			6			14			13
Financing-related revenue		34			36			36			44			40			38			39			(20	)		34			38			34			41
Equity investment revenue		36			17			20			5			6			(146	)		(17	)		(223	)		21			(5	)		(23	)		(21	)
Other		9			13			5			6			5			13			9			15			6			8			5			28
Total fee and other revenue		739			716			711			736			777			651			761			558			943			923			856			900
Gains on the sales of securities		—			—			—			—			—			—			—			—			—			—			28			31
Total noninterest revenue (non-FTE)	$	739		$	716		$	711		$	736		$	777		$	651		$	761		$	558		$	943		$	923		$	884		$	931
FTE impact		8			8			9			9			10			10			11			9			10			12			9			12
Total noninterest revenue (FTE)	$	747		$	724		$	720		$	745		$	787		$	661		$	772		$	567		$	953		$	935		$	893		$	943
Fee revenue as a percentage of fee and net interest revenue (FTE)		85	%		84	%		84	%		84	%		85	%		83	%		84	%		79	%		86	%		86	%		84	%		86	%
Trust and investment fee revenue as a percentage of fee and net interest revenue (FTE)		64	%		65	%		64	%		66	%		67	%		80	%		68	%		93	%		70	%		70	%		69	%		69	%
Market value of assets under management at period end (in billions)	$	511		$	521		$	540		$	530		$	520		$	546		$	547		$	592		$	610		$	588		$	562		$	581
Market value of assets under administration or custody at period end (in billions)	$	2,261		$	2,257		$	2,298		$	2,267		$	2,251		$	2,295		$	2,077		$	2,082		$	2,324		$	2,213		$	2,209		$	2,276
S&P 500 Index at period end		1,499			1,455			1,437			1,320			1,160			1,224			1,041			1,148			1,147			990			815			880

(a) In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

(b) Amounts do no necessarily agree with those presented in Business Sectors which include revenue transferred between sectors under revenue transfer agreements.

Additionally, sector amounts are reported on a fully taxable equivalent basis.

Note: For analytical purposes, the term “fee revenue”, as utilized throughout this report, is defined as total noninterest revenue less gains on the sales of securities.

Page 12

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS—12 Quarter Trend

OPERATING EXPENSE

(dollar amounts in millions)	2000 (a)												2001 (a)												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Staff Expense:
Compensation	$	233		$	234		$	241		$	241		$	265		$	264		$	269		$	311		$	325		$	322		$	322		$	350
Employee benefits		15			14			14			14			19			18			18			20			38			39			32			40
Incentive		87			79			83			92			84			84			76			113			113			97			86			101
Total staff expense		335			327			338			347			368			366			363			444			476			458			440			491
Professional, legal and other purchased services		59			62			69			63			75			78			80			114			83			94			105			107
Net occupancy expense		48			43			46			48			52			53			55			59			63			60			63			60
Equipment expense		33			32			32			37			38			35			40			44			56			53			51			62
Business development		33			34			30			32			30			28			27			32			32			34			32			33
Communications expense		17			17			15			15			22			26			24			23			28			30			25			27
Amortization of goodwill		17			16			17			17			18			18			18			19			—			—			—			—
Amortization of other intangible assets		2			1			2			2			2			1			2			2			3			4			3			5
Other expense		20			18			15			22			18			22			16			38			31			27			37			53
Total operating expense	$	564		$	550		$	564		$	583		$	623		$	627		$	625		$	775		$	772		$	760		$	756		$	838
Efficiency ratio (b)		64	%		64	%		65	%		66	%		67	%		78	%		68	%		108	%		70	%		70	%		74	%		79	%

(a) In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursement as a reduction of expenses. Prior period amounts have been reclassified.

(b) Operating expense, as a percentage of fee and net interest revenue, computed on a taxable equivalent basis, excluding the gains on the sales of securities.

Page 13

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS—12 Quarter Trend

PROVISION AND RESERVES FOR CREDIT EXPOSURE

(dollar amounts in millions)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Provision for credit losses	$	3		$	9		$	(8	)	$	4		$	(15	)	$	1		$	5		$	5		$	4		$	160		$	2		$	6
Net credit (losses) recoveries (a):
Commercial and financial		(5	)		(8	)		(3	)		(11	)		(1	)		(20	)		(21	)		(39	)		(2	)		(7	)		(114	)		1
Commercial real estate		5			—			—			—			—			—			—			—			—			—			(1	)		1
Consumer credit		—			—			(1	)		—			—			—			—			(1	)		(1	)		—			—			—
Total net credit losses	$	—		$	(8	)	$	(4	)	$	(11	)	$	(1	)	$	(20	)	$	(21	)	$	(40	)	$	(3	)	$	(7	)	$	(115	)	$	2
Annualized net credit losses to average loans		—			0.32	%		0.14	%		0.41	%		0.06	%		0.79	%		0.89	%		1.67	%		0.15	%		0.26	%		4.64	%		-0.08	%
Reserve for loan losses (b)(c):	$	270		$	271		$	255		$	254		$	219		$	217		$	187		$	96		$	106		$	242		$	127		$	127
Reserve for unfunded commitments (b)(c)		21			20			24			18			37			19			33			42			32			51			52			52
Total reserve for credit exposure	$	291		$	291		$	279		$	272		$	256		$	236		$	220		$	138		$	138		$	293		$	179		$	179
Reserve for loan losses (b)(c):
As a percentage of total loans (c)		2.55	%		2.58	%		2.43	%		2.49	%		2.09	%		2.28	%		1.89	%		1.12	%		1.11	%		2.47	%		1.36	%		1.51	%
As a percentage of nonperforming loans (c)		199	%		203	%		195	%		154	%		117	%		175	%		153	%		164	%		143	%		138	%		188	%		222	%

(a) Includes write-downs resulting from loan sales.

(b) In the second quarter of 2002, the Corporation began to record the reserve for unfunded loan commitments as a liability. Previously, any such reserve was included in the reserve for loan losses.

A loss of $1 million was charged against the reserve for unfunded commitments in the third quarter of 2002 resulting from the sale of a loan commitment.

(c) At period end.

Page 14

MELLON FINANCIAL CORPORATION

CONTINUING OPERATIONS—12 Quarter Trend

NONPERFORMING ASSETS

(dollar amounts in millions)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Nonperforming loans:
Commercial and financial	$	120		$	118		$	121		$	159		$	183		$	121		$	121		$	56		$	69		$	160		$	55		$	54
Consumer credit		14			11			7			5			2			2			1			2			2			4			5			3
Commercial real estate		1			4			3			1			1			1			1			1			3			11			7			—
Total nonperforming loans		135			133			131			165			186			124			123			59			74			175			67			57
Acquired property:
Real estate acquired		5			5			4			7			6			3			2			2			1			1			2			2
Reserve for real estate acquired		(1	)		(1	)		—			—			—			—			—			—			—			—			—			—
Net real estate acquired		4			4			4			7			6			3			2			2			1			1			2			2
Other assets acquired		2			2			—			—			—			1			1			1			—			—			—			—
Total acquired property		6			6			4			7			6			4			3			3			1			1			2			2
Total nonperforming assets	$	141		$	139		$	135		$	172		$	192		$	128		$	126		$	62		$	75		$	176		$	69		$	59
Nonperforming loans as a percentage of total loans		1.28	%		1.27	%		1.25	%		1.61	%		1.78	%		1.30	%		1.24	%		0.69	%		0.77	%		1.78	%		0.72	%		0.68	%
Nonperforming assets as a percentage of total loans and net acquired property		1.34	%		1.33	%		1.29	%		1.68	%		1.84	%		1.34	%		1.28	%		0.72	%		0.79	%		1.79	%		0.74	%		0.70	%
Nonperforming assets as a percentage of Tier I capital plus the reserve for loan losses		4.32	%		4.21	%		3.92	%		4.97	%		6.15	%		4.24	%		4.74	%		2.30	%		3.00	%		7.55	%		3.14	%		2.66	%

Page 15

APPENDIX A

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

(dollar amounts in millions, averages in billions; presented on an FTE basis)	Institutional Asset Mgmt									Mutual Funds									Private Wealth Mgmt									Asset Servicing
	2002			2001			2000			2002			2001			2000			2002			2001			2000			2002			2001			2000
Trust fees	$	561		$	537		$	510		$	549		$	538		$	538		$	305		$	312		$	313		$	507		$	439		$	393
Other fee revenue		14			9			7			(5	)		3			24			15			15			11			127			163			150
Net interest revenue (expense)		(29	)		(13	)		(3	)		7			1			(8	)		208			165			125			96			125			108
Total revenue		546			533			514			551			542			554			528			492			449			730			727			651
Credit quality expense		—			—			—			—			—			—			—			1			1			—			—			—
Operating expense:
Amortization of goodwill		—			—			—			—			—			—			—			—			—			—			—			—
Other expense		474			386			343			339			328			326			277			254			233			538			451			395
Total operating expense		474			386			343			339			328			326			277			254			233			538			451			395
Income from continuing operations before taxes (benefits)		72			147			171			212			214			228			251			237			215			192			276			256
Income taxes (benefits)		27			55			64			85			86			93			89			83			77			68			95			90
Income (loss) from continuing operations		45			92			107			127			128			135			162			154			138			124			181			166
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	45		$	92		$	107		$	127		$	128		$	135		$	162		$	154		$	138		$	124		$	181		$	166
($ billions)
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	2.7		$	2.3		$	2.3		$	—		$	—		$	—
Average assets (c)	$	1.2		$	0.9		$	0.8		$	0.7		$	0.7		$	0.7		$	5.0		$	4.8		$	4.6		$	4.4		$	4.7		$	4.6
Average deposits	$	—		$	—		$	—		$	—		$	—		$	—		$	4.4		$	4.2		$	4.1		$	3.4		$	3.7		$	3.5
Average common equity	$	0.2		$	0.2		$	0.2		$	0.4		$	0.4		$	0.3		$	0.2		$	0.2		$	0.3		$	0.5		$	0.5		$	0.4
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under management at period end (in billions)	$	332		$	349		$	322		$	164		$	152		$	112		$	44		$	50		$	56		$	41		$	41		$	40
Market value of assets under administration or custody at period end (in billions)	$	13		$	6		$	—		$	—		$	—		$	—		$	18		$	21		$	33		$	2,129		$	2,029		$	2,202
Return on common equity		20	%		41	%		57	%		31	%		36	%		42	%		77	%		69	%		60	%		27	%		39	%		40	%
Pretax operating margin		13	%		28	%		33	%		38	%		39	%		41	%		48	%		48	%		48	%		26	%		38	%		39	%

(a) Results for 2000 and 2001 exclude the after-tax impact of the amortization of goodwill from purchase acquisitions.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 16

APPENDIX A (continued)

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

	Human Resources Services									Treasury Services									Total Core Sectors									Other Activity									Consolidated Results
(dollar amounts in millions, averages in billions; presented on an FTE basis)	2002			2001			2000			2002			2001			2000			2002			2001			2000			2002			2001			2000			2002			2001			2000
Trust fees	$	1,059		$	733		$	470		$	8		$	7		$	4		$	2,989		$	2,566		$	2,228		$	(1	)	$	(11	)	$	33		$	2,988		$	2,555		$	2,261
Other fee revenue (b)		28			—			2			362			349			302			541			539			496			195			(303	)		184			736			236			680
Net interest revenue (expense) (c)		(26	)		(12	)		(7	)		471			394			369			727			660			584			(105	)		(78	)		(29	)		622			582			555
Total revenue		1,061			721			465			841			750			675			4,257			3,765			3,308			89			(392	)		188			4,346			3,373			3,496
Credit quality expense		—			—			—			6			2			9			6			3			10			166			(7	)		(2	)		172			(4	)		8
Operating expense:
Amortization of goodwill		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Other expense		1,004			669			440			475			441			402			3,107			2,529			2,139			19			48			55			3,126			2,577			2,194
Total operating expense		1,004			669			440			475			441			402			3,107			2,529			2,139			19			48			55			3,126			2,577			2,194
Income from continuing operations before taxes (benefits)		57			52			25			360			307			264			1,144			1,233			1,159			(96	)		(433	)		135			1,048			800			1,294
Income taxes (benefits) (d)		19			17			8			127			108			94			415			444			426			(34	)		(146	)		49			381			298			475
Income (loss) from continuing operations		38			35			17			233			199			170			729			789			733			(62	)		(287	)		86			667			502			819
Income from discontinued operations after-tax (e)		—			—			—			—			—			—			—			—			—			—			—			—			15			912			291
Net income (loss)	$	38		$	35		$	17		$	233		$	199		$	170		$	729		$	789		$	733		$	(62	)	$	(287	)	$	86		$	682		$	1,414		$	1,110
($ billions)
Average loans	$	—		$	—		$	—		$	5.3		$	5.6		$	6.6		$	8.0		$	7.9		$	8.9		$	1.4		$	1.9		$	1.8		$	9.4		$	9.8		$	10.7
Average assets (f)(g)	$	1.9		$	1.0		$	0.7		$	11.5		$	10.1		$	10.1		$	24.7		$	22.2		$	21.5		$	8.6		$	10.6		$	6.5		$	33.7		$	45.5		$	46.7
Average deposits	$	0.1		$	0.1		$	0.1		$	9.8		$	8.6		$	7.3		$	17.7		$	16.6		$	15.0		$	1.3		$	1.0		$	1.4		$	19.0		$	17.6		$	16.4
Average common equity	$	0.3		$	0.2		$	0.1		$	1.0		$	0.8		$	0.9		$	2.6		$	2.3		$	2.2		$	0.8		$	1.4		$	1.7		$	3.4		$	3.7		$	3.9
Average Tier I preferred equity	$	—		$	—		$	—		$	0.2		$	0.2		$	0.3		$	0.2		$	0.2		$	0.3		$	0.8		$	0.8		$	0.7		$	1.0		$	1.0		$	1.0
Market value of assets under management at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	581		$	592		$	530		$	—		$	—		$	—		$	581		$	592		$	530
Market value of assets under administration or custody at period end (in billions)	$	116		$	26		$	32		$	—		$	—		$	—		$	2,276		$	2,082		$	2,267		$	—		$	—		$	—		$	2,276		$	2,082		$	2,267
Return on common equity (h)		14	%		21	%		19	%		23	%		24	%		18	%		28	%		35	%		34	%		n/m			n/m			n/m			20	%		13	%		21	%
Pretax operating margin (h)		5	%		7	%		5	%		43	%		41	%		39	%		27	%		33	%		35	%		n/m			n/m			n/m			24	%		24	%		37	%

(a) Results for 2000 and 2001 exclude the after-tax impact of the amortization of goodwill from purchase acquisitions.

(b) Consolidated results include FTE impact of $43 million, $40 million and $34 million for 2002, 2001 and 2000, respectively.

(c) Consolidated results include FTE impact of $12 million, $8 million and $ 5 million for 2002, 2001 and 2000, respectively.

(d) Consolidated results include FTE impact of $55 million, $48 million and $39 million for 2002, 2001 and 2000 respectively.

(e) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(f) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

(g) Consolidated average assets includes average assets of discontinued operations of $.4 billion, $12.7 billion and $18.7 billion for 2002, 2001 and 2000 respectively.

(h) On a continuing operations basis.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 17

APPENDIX B

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

INSTITUTIONAL ASSET MANAGEMENT—12 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	131		$	114		$	124		$	141		$	124		$	122		$	129		$	162		$	150		$	136		$	129		$	146
Other fee revenue		1			2			3			1			(1	)		3			5			2			4			2			2			6
Net interest revenue (expense)		(2	)		(1	)		(1	)		1			(1	)		(1	)		(6	)		(5	)		(7	)		(7	)		(8	)		(7	)
Total revenue		130			115			126			143			122			124			128			159			147			131			123			145
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—			—
Operating expense:
Amortization of goodwill		—			—			—			—			—			—			—			—			—			—			—			—
Other expense		87			77			78			101			87			83			98			118			117			109			112			136
Total operating expense		87			77			78			101			87			83			98			118			117			109			112			136
Income from continuing operations before taxes (benefits)		43			38			48			42			35			41			30			41			30			22			11			9
Income taxes (benefits)		16			14			19			15			13			16			11			15			11			9			4			3
Income (loss) from continuing operations		27			24			29			27			22			25			19			26			19			13			7			6
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	27		$	24		$	29		$	27		$	22		$	25		$	19		$	26		$	19		$	13		$	7		$	6
($ billions)
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets (c)	$	0.8		$	0.8		$	0.8		$	0.7		$	0.7		$	0.8		$	1.0		$	1.1		$	1.2		$	1.2		$	1.3		$	1.3
Average deposits	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average common equity	$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under management at period end (in billions)	$	304		$	316		$	330		$	322		$	306		$	318		$	331		$	349		$	350		$	334		$	313		$	332
Market value of assets under administration or custody at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	6		$	7		$	7		$	7		$	13
Return on common equity		59	%		51	%		62	%		54	%		44	%		48	%		32	%		43	%		32	%		24	%		13	%		11	%
Pretax operating margin		33	%		33	%		38	%		30	%		29	%		33	%		24	%		26	%		20	%		17	%		9	%		6	%

(a) Results for 2000 and 2001 exclude the after-tax impact of the amortization of goodwill from purchase acquisitions.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 18

APPENDIX B (continued)

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

MUTUAL FUNDS—12 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	134		$	134		$	138		$	132		$	128		$	126		$	140		$	144		$	142		$	143		$	135		$	129
Other fee revenue		12			3			2			7			2			2			—			(1	)		(1	)		(1	)		(2	)		(1	)
Net interest revenue (expense)		(3	)		(2	)		(1	)		(2	)		(1	)		1			—			1			1			2			2			2
Total revenue		143			135			139			137			129			129			140			144			142			144			135			130
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—			—
Operating expense:
Amortization of goodwill		—			—			—			—			—			—			—			—			—			—			—			—
Other expense		81			84			82			79			79			73			84			92			84			86			83			86
Total operating expense		81			84			82			79			79			73			84			92			84			86			83			86
Income from continuing operations before taxes (benefits)		62			51			57			58			50			56			56			52			58			58			52			44
Income taxes (benefits)		25			21			23			24			20			23			23			20			24			23			22			16
Income (loss) from continuing operations		37			30			34			34			30			33			33			32			34			35			30			28
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	37		$	30		$	34		$	34		$	30		$	33		$	33		$	32		$	34		$	35		$	30		$	28
($ billions)
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets (c)	$	0.7		$	0.7		$	0.7		$	0.7		$	0.7		$	0.6		$	0.6		$	0.7		$	0.7		$	0.7		$	0.7		$	0.7
Average deposits	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average common equity	$	0.3		$	0.3		$	0.3		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under management at period end (in billions)	$	109		$	106		$	113		$	112		$	120		$	133		$	131		$	152		$	164		$	164		$	162		$	164
Market value of assets under administration or custody at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Return on common equity		48	%		38	%		41	%		40	%		36	%		38	%		36	%		35	%		36	%		34	%		29	%		26	%
Pretax operating margin		43	%		38	%		41	%		42	%		39	%		43	%		40	%		36	%		41	%		40	%		39	%		34	%

(a) Results for 2000 and 2001 exclude the after-tax impact of the amortization of goodwill from purchase acquisitions.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses.

Prior period amounts have been reclassified. Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 19

APPENDIX B (continued)

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

PRIVATE WEALTH MANAGEMENT—12 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	74		$	76		$	78		$	85		$	81		$	81		$	80		$	70		$	80		$	79		$	75		$	71
Other fee revenue		2			3			4			2			3			3			2			7			3			2			4			6
Net interest revenue (expense)		28			32			32			33			34			38			44			49			54			54			52			48
Total revenue		104			111			114			120			118			122			126			126			137			135			131			125
Credit quality expense		—			—			1			—			—			—			—			1			1			—			(1	)		—
Operating expense:
Amortization of goodwill		—			—			—			—			—			—			—			—			—			—			—			—
Other expense		57			58			60			58			60			63			62			69			70			66			68			73
Total operating expense		57			58			60			58			60			63			62			69			70			66			68			73
Income from continuing operations before taxes (benefits)		47			53			53			62			58			59			64			56			66			69			64			52
Income taxes (benefits)		17			19			18			23			21			21			23			18			23			25			23			18
Income (loss) from continuing operations		30			34			35			39			37			38			41			38			43			44			41			34
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	30		$	34		$	35		$	39		$	37		$	38		$	41		$	38		$	43		$	44		$	41		$	34
($ billions)
Average loans	$	2.3		$	2.2		$	2.4		$	2.4		$	2.4		$	2.3		$	2.4		$	2.4		$	2.5		$	2.7		$	2.8		$	2.7
Average assets (c)	$	4.4		$	4.6		$	4.7		$	4.8		$	4.8		$	4.7		$	4.6		$	5.2		$	5.1		$	5.0		$	4.8		$	5.0
Average deposits	$	3.9		$	4.1		$	4.2		$	4.2		$	4.2		$	4.0		$	3.9		$	4.6		$	4.5		$	4.4		$	4.3		$	4.5
Average common equity	$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of total client assets at period end (in billions)	$	97		$	94		$	93		$	93		$	84		$	79		$	71		$	74		$	74		$	70		$	64		$	66
Return on common equity		57	%		60	%		57	%		66	%		66	%		70	%		73	%		65	%		84	%		82	%		78	%		65	%
Pretax operating margin		45	%		47	%		47	%		51	%		49	%		49	%		51	%		44	%		48	%		51	%		49	%		41	%

(a) Results for 2000 and 2001 exclude the after-tax impact of the amortization of goodwill from purchase acquisitions.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 20

APPENDIX B (continued)

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

ASSET SERVICING—12 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	95		$	101		$	100		$	97		$	106		$	115		$	103		$	115		$	122		$	134		$	128		$	123
Other fee revenue		45			37			34			34			44			42			38			39			30			34			37			26
Net interest revenue (expense)		22			26			29			31			31			28			31			35			28			24			23			21
Total revenue		162			164			163			162			181			185			172			189			180			192			188			170
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—			—
Operating expense:
Amortization of goodwill		—			—			—			—			—			—			—			—			—			—			—			—
Other expense		93			95			102			105			108			110			108			125			128			134			138			138
Total operating expense		93			95			102			105			108			110			108			125			128			134			138			138
Income from continuing operations before taxes (benefits)		69			69			61			57			73			75			64			64			52			58			50			32
Income taxes (benefits)		24			24			22			20			25			27			22			21			19			20			18			11
Income (loss) from continuing operations		45			45			39			37			48			48			42			43			33			38			32			21
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	45		$	45		$	39		$	37		$	48		$	48		$	42		$	43		$	33		$	38		$	32		$	21
($ billions)
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets (c)	$	4.1		$	4.7		$	4.7		$	4.8		$	5.0		$	4.4		$	4.7		$	4.6		$	4.2		$	4.4		$	4.7		$	4.5
Average deposits	$	3.2		$	3.5		$	3.5		$	3.7		$	3.9		$	3.3		$	3.8		$	3.7		$	3.2		$	3.4		$	3.4		$	3.4
Average common equity	$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.5		$	0.4		$	0.5		$	0.4		$	0.5
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under management at period end (in billions)	$	41		$	43		$	40		$	40		$	44		$	43		$	39		$	41		$	45		$	43		$	44		$	41
Market value of assets under administration or custody at period end (in billions)	$	2,215		$	2,213		$	2,256		$	2,202		$	2,193		$	2,243		$	2,030		$	2,029		$	2,162		$	2,066		$	2,071		$	2,129
Return on common equity		44	%		43	%		37	%		35	%		42	%		42	%		35	%		36	%		29	%		33	%		28	%		18	%
Pretax operating margin		42	%		42	%		37	%		35	%		40	%		40	%		37	%		34	%		29	%		30	%		26	%		19	%

(a) Results for 2000 and 2001 exclude the after-tax impact of the amortization of goodwill from purchase acquisitions.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 21

APPENDIX B (continued)

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

HUMAN RESOURCES SERVICES—12 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	105		$	119		$	115		$	131		$	181		$	193		$	179		$	180		$	279		$	275		$	240		$	265
Other fee revenue		1			1			—			—			(1	)		—			(2	)		3			1			4			17			6
Net interest revenue (expense)		(1	)		(2	)		(1	)		(3	)		(2	)		(4	)		(3	)		(3	)		(6	)		(6	)		(7	)		(7	)
Total revenue		105			118			114			128			178			189			174			180			274			273			250			264
Credit quality expense		—			—			—			—			—			—			—			—			—			—			—			—
Operating expense:
Amortization of goodwill		—			—			—			—			—			—			—			—			—			—			—			—
Other expense		107			108			106			119			160			169			165			175			252			256			246			250
Total operating expense		107			108			106			119			160			169			165			175			252			256			246			250
Income from continuing operations before taxes (benefits)		(2	)		10			8			9			18			20			9			5			22			17			4			14
Income taxes (benefits)		(1	)		4			2			3			6			7			3			1			8			6			1			4
Income (loss) from continuing operations		(1	)		6			6			6			12			13			6			4			14			11			3			10
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	(1	)	$	6		$	6		$	6		$	12		$	13		$	6		$	4		$	14		$	11		$	3		$	10
($ billions)
Average loans	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Average assets (c)	$	0.7		$	0.7		$	0.7		$	0.7		$	0.9		$	0.9		$	0.9		$	1.2		$	1.7		$	1.7		$	2.0		$	2.0
Average deposits	$	0.2		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1
Average common equity	$	0.1		$	0.1		$	0.1		$	0.1		$	0.2		$	0.2		$	0.2		$	0.2		$	0.3		$	0.3		$	0.3		$	0.3
Average Tier I preferred equity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under management at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under administration or custody at period end (in billions)	$	9		$	9		$	9		$	32		$	27		$	28		$	26		$	26		$	135		$	121		$	114		$	116
Return on common equity		n/m			34	%		26	%		18	%		29	%		31	%		15	%		11	%		21	%		16	%		4	%		15	%
Pretax operating margin		n/m			8	%		7	%		6	%		10	%		10	%		5	%		3	%		8	%		6	%		2	%		5	%

(a) Results for 2000 and 2001 exclude the after-tax impact of the amortization of goodwill from purchase acquisitions.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 22

APPENDIX B (continued)

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

TREASURY SERVICES—12 Quarter Trend

dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	1		$	1		$	1		$	1		$	1		$	3		$	1		$	2		$	2		$	2		$	2		$	2
Other fee revenue		71			76			77			78			83			88			87			91			87			90			91			94
Net interest revenue (expense)		88			93			94			94			94			98			105			97			113			120			124			114
Total revenue		160			170			172			173			178			189			193			190			202			212			217			210
Credit quality expense		4			3			2			—			1			—			1			—			1			—			1			4
Operating expense:
Amortization of goodwill		—			—			—			—			—			—			—			—			—			—			—			—
Other expense		94			100			103			105			105			113			108			115			113			118			117			127
Total operating expense		94			100			103			105			105			113			108			115			113			118			117			127
Income from continuing operations before taxes (benefits)		62			67			67			68			72			76			84			75			88			94			99			79
Income taxes (benefits)		22			24			24			24			26			26			31			25			31			34			36			26
Income (loss) from continuing operations		40			43			43			44			46			50			53			50			57			60			63			53
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	40		$	43		$	43		$	44		$	46		$	50		$	53		$	50		$	57		$	60		$	63		$	53
($ billions)
Average loans	$	7.4		$	6.5		$	6.3		$	6.0		$	5.9		$	5.7		$	5.3		$	5.4		$	5.3		$	5.5		$	5.4		$	5.1
Average assets (c)	$	10.7		$	10.2		$	9.7		$	9.7		$	10.7		$	9.9		$	9.9		$	10.0		$	10.1		$	9.6		$	12.7		$	13.5
Average deposits	$	6.9		$	7.4		$	7.1		$	7.9		$	9.0		$	8.3		$	8.6		$	8.7		$	8.5		$	8.0		$	11.0		$	11.8
Average common equity	$	0.9		$	0.9		$	1.0		$	0.9		$	0.9		$	0.9		$	0.8		$	0.8		$	1.1		$	1.0		$	1.1		$	0.9
Average Tier I preferred equity	$	0.3		$	0.3		$	0.3		$	0.3		$	0.3		$	0.3		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2
Market value of assets under management at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under administration or custody at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Return on common equity		18	%		19	%		18	%		19	%		20	%		22	%		28	%		25	%		21	%		24	%		24	%		21	%
Pretax operating margin		39	%		40	%		39	%		39	%		40	%		41	%		44	%		39	%		44	%		45	%		45	%		37	%

(a) Results for 2000 and 2001 exclude the after-tax impact of the amortization of goodwill from purchase acquisitions.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 23

APPENDIX B (continued)

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

TOTAL CORE SECTORS—12 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	540		$	545		$	556		$	587		$	621		$	640		$	632		$	673		$	775		$	769		$	709		$	736
Other fee revenue		132			122			120			122			130			138			130			141			124			131			149			137
Net interest revenue (expense)		132			146			152			154			155			160			171			174			183			187			186			171
Total revenue		804			813			828			863			906			938			933			988			1,082			1,087			1,044			1,044
Credit quality expense		4			3			3			—			1			—			1			1			2			—			—			4
Operating expense:
Amortization of goodwill		—			—			—			—			—			—			—			—			—			—			—			—
Other expense		519			522			531			567			599			611			625			694			764			769			764			810
Total operating expense		519			522			531			567			599			611			625			694			764			769			764			810
Income from continuing operations before taxes (benefits)		281			288			294			296			306			327			307			293			316			318			280			230
Income taxes (benefits)		103			106			108			109			111			120			113			100			116			117			104			78
Income (loss) from continuing operations		178			182			186			187			195			207			194			193			200			201			176			152
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	178		$	182		$	186		$	187		$	195		$	207		$	194		$	193		$	200		$	201		$	176		$	152
($ billions)
Average loans	$	9.7		$	8.7		$	8.7		$	8.4		$	8.3		$	8.0		$	7.7		$	7.8		$	7.8		$	8.2		$	8.2		$	7.8
Average assets (c)	$	21.4		$	21.7		$	21.3		$	21.4		$	22.8		$	21.3		$	21.7		$	22.8		$	23.0		$	22.6		$	26.2		$	27.0
Average deposits	$	14.2		$	15.1		$	14.9		$	15.9		$	17.2		$	15.7		$	16.4		$	17.1		$	16.3		$	15.9		$	18.8		$	19.8
Average common equity	$	2.1		$	2.1		$	2.2		$	2.2		$	2.3		$	2.3		$	2.2		$	2.3		$	2.6		$	2.6		$	2.6		$	2.5
Average Tier I preferred equity	$	0.3		$	0.3		$	0.3		$	0.3		$	0.3		$	0.3		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2		$	0.2
Market value of assets under management at period end (in billions)	$	511		$	521		$	540		$	530		$	520		$	546		$	547		$	592		$	610		$	588		$	562		$	581
Market value of assets under administration or custody at period end     (in billions)	$	2,261		$	2,257		$	2,298		$	2,267		$	2,251		$	2,295		$	2,077		$	2,082		$	2,324		$	2,213		$	2,209		$	2,276
Return on common equity		34	%		34	%		33	%		33	%		34	%		36	%		35	%		34	%		31	%		31	%		27	%		24	%
Pretax operating margin		35	%		35	%		36	%		34	%		34	%		35	%		33	%		30	%		29	%		29	%		27	%		22	%

(a) Results for 2000 and 2001 exclude the after-tax impact of the amortization of goodwill from purchase acquisitions.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 24

APPENDIX B (continued)

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

OTHER ACTIVITY—12 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	24		$	12		$	(1	)	$	(2	)	$	(3	)	$	(2	)	$	(3	)	$	(3	)	$	—		$	(1	)	$	1		$	(1	)
Other fee revenue		52			46			47			39			40			(114	)		15			(244	)		54			36			34			71
Net interest revenue (expense)		1			(8	)		(10	)		(12	)		(13	)		(22	)		(23	)		(20	)		(25	)		(31	)		(27	)		(22	)
Total revenue		77			50			36			25			24			(138	)		(11	)		(267	)		29			4			8			48
Credit quality expense		(1	)		6			(11	)		4			(16	)		1			4			4			2			160			2			2
Operating expense:
Amortization of goodwill		—			—			—			—			—			—			—			—			—			—			—			—
Other expense		28			12			16			(1	)		6			(2	)		(18	)		62			8			(9	)		(8	)		28
Total operating expense		28			12			16			(1	)		6			(2	)		(18	)		62			8			(9	)		(8	)		28
Income from continuing operations before taxes (benefits)		50			32			31			22			34			(137	)		3			(333	)		19			(147	)		14			18
Income taxes (benefits)		18			12			11			8			13			(48	)		1			(112	)		8			(52	)		4			6
Income (loss) from continuing operations		32			20			20			14			21			(89	)		2			(221	)		11			(95	)		10			12
Income from discontinued operations after-tax (b)		—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss)	$	32		$	20		$	20		$	14		$	21		$	(89	)	$	2		$	(221	)	$	11		$	(95	)	$	10		$	12
($ billions)
Average loans	$	1.8		$	1.8		$	1.7		$	1.9		$	2.0		$	2.1		$	1.9		$	1.6		$	1.3		$	1.5		$	1.6		$	1.4
Average assets (c)	$	6.4		$	6.3		$	6.3		$	7.2		$	8.2		$	9.4		$	12.8		$	12.0		$	9.0		$	10.3		$	8.0		$	7.2
Average deposits	$	1.7		$	1.3		$	1.3		$	1.3		$	1.1		$	1.0		$	0.9		$	0.8		$	1.2		$	2.0		$	1.1		$	0.9
Average common equity	$	1.8		$	1.7		$	1.7		$	1.8		$	1.7		$	1.4		$	1.2		$	1.5		$	0.9		$	0.8		$	0.7		$	0.8
Average Tier I preferred equity	$	0.7		$	0.7		$	0.7		$	0.7		$	0.7		$	0.7		$	0.8		$	0.8		$	0.8		$	0.8		$	0.8		$	0.8
Market value of assets under management at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Market value of assets under administration or custody at period end (in billions)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Return on common equity		n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m
Pretax operating margin		n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m			n/m

(a) Results for 2000 and 2001 exclude the after-tax impact of the amortization of goodwill from purchase acquisitions.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement.

The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 25

APPENDIX B (continued)

MELLON FINANCIAL CORPORATION

BUSINESS SECTORS (a)

CONSOLIDATED RESULTS—12 Quarter Trend

(dollar amounts in millions, averages in billions; presented on an FTE basis)	2000												2001												2002
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr
Trust fees	$	564		$	557		$	555		$	585		$	618		$	638		$	629		$	670		$	775		$	768		$	710		$	735
Other fee revenue		184			168			167			161			170			24			145			(103	)		178			167			183			208
Net interest revenue (expense)		133			138			142			142			142			138			148			154			158			156			159			149
Total revenue		881			863			864			888			930			800			922			721			1,111			1,091			1,052			1,092
Credit quality expense		3			9			(8	)		4			(15	)		1			5			5			4			160			2			6
Operating expense:
Amortization of goodwill		—			—			—			—			—			—			—			—			—			—			—			—
Other expense		547			534			547			566			605			609			607			756			772			760			756			838
Total operating expense		547			534			547			566			605			609			607			756			772			760			756			838
Income from continuing operations before taxes (benefits)		331			320			325			318			340			190			310			(40	)		335			171			294			248
Income taxes (benefits)		121			118			119			117			124			72			114			(12	)		124			65			108			84
Income (loss) from continuing operations		210			202			206			201			216			118			196			(28	)		211			106			186			164
Income (loss) from discontinued operations after-tax (b)		69			71			72			79			75			(39	)		20			856			5			3			5			2
Net income (loss)	$	279		$	273		$	278		$	280		$	291		$	79		$	216		$	828		$	216		$	109		$	191		$	166
($ billions)
Average loans	$	11.5		$	10.5		$	10.4		$	10.3		$	10.3		$	10.1		$	9.6		$	9.4		$	9.1		$	9.7		$	9.8		$	9.2
Average assets (c)(d)	$	47.2		$	46.9		$	46.1		$	46.7		$	48.2		$	45.8		$	45.5		$	42.5		$	33.0		$	33.4		$	34.2		$	34.2
Average deposits	$	15.9		$	16.4		$	16.2		$	17.2		$	18.3		$	16.7		$	17.3		$	17.9		$	17.5		$	17.9		$	19.9		$	20.7
Average common equity	$	3.9		$	3.8		$	3.9		$	4.0		$	4.0		$	3.7		$	3.4		$	3.8		$	3.5		$	3.4		$	3.3		$	3.3
Average Tier I preferred equity	$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0		$	1.0
Market value of assets under management at period end (in billions)	$	511		$	521		$	540		$	530		$	520		$	546		$	547		$	592		$	610		$	588		$	562		$	581
Market value of assets under administration or custody at period end (in billions)	$	2,261		$	2,257		$	2,298		$	2,267		$	2,251		$	2,295		$	2,077		$	2,082		$	2,324		$	2,213		$	2,209		$	2,276
Return on common equity (e)		22	%		22	%		21	%		20	%		22	%		13	%		23	%		n/m			25	%		13	%		23	%		19	%
Pretax operating margin (e)		38	%		37	%		38	%		36	%		37	%		24	%		34	%		n/m			30	%		16	%		28	%		23	%

(a) Results for 2000 and 2001 exclude the after-tax impact of the amortization of goodwill from purchase acquisitions.

(b) Income from discontinued operations has not been allocated to any of the Corporation’s reportable sectors.

(c) Where average deposits are in excess of average loans, average assets include an allocation of investment securities equal to such excess.

(d) Consolidated average assets includes average assets of discontinued operations of $1.0 billion, $.5 billion, $— billion and $— billion for the first, second, third and fourth quarter, respectively, of 2002; $17.2 billion, $15.1 billion, $11.0 billion and $7.7 billion for the first, second, third and fourth quarter, respectively, of 2001; and $19.4 billion, $18.9 billion, $18.5 billion and $18.1 billion for the first, second, third and fourth quarter, respectively, of 2000.

(e) On a continuing operations basis.

n/m—not meaningful

In January 2002, the Corporation began to record customer expense reimbursements as revenue in accordance with a Financial Accounting Standards Board (FASB) staff announcement. The Corporation had historically reported expense reimbursements as a reduction of expenses. Prior period amounts have been reclassified.

Note: Prior periods sector data reflects immaterial reclassifications resulting from minor changes to be consistent with current period presentation.

Page 26