<table><tr><th>From:</th><th>Richard Kahn</th></tr><tr><td>Sent:</td><td>Thursday, July 21, 2016 12:12 PM</td></tr><tr><td>To:</td><td>Jeffrey Epstein</td></tr><tr><td>Subject:</td><td>Fwd: BNY Mellon: 2416 First Pass: In Line as Gross Margins Offset Expense Beat</td></tr></table>

Sent from my iPhone
=br>Begin forwarded message:

=rom: "Morgan Stanley <u>Date: Jul 21, 2016 at 8:04:13</u> A= EDT To: Subject: BNY Mellon: 2416 First Pass: In=Line as Gross Margins Offset Expense Beat Reply-To: <mswmir-cie-feedback@morg=nstanley.com>

<table><tr><th>&lt;http://www.morganstanley.com/img/cs/-pacer.gif&gt; &lt;http://www.morganstanley.com/img/cs/=pacer.gif&gt;</th></tr><tr><td>&lt;http://www.morganstanley.com/img/cs/=pacer.gif&gt; &lt;http://www.morganstanley.com/img/cs/=pacer.gif&gt;</td></tr><tr><td>&lt;http://www.morganstanley.com/img/cs/pacer.gif&gt; &lt;http://www.morganstanley.com/img/cs/spacer.gif&gt;</td></tr><tr><td>&lt;http://www.morganstanley.com/img/cs/pacer.gif&gt; &lt;http://www.morganstanley.com/img/cs/spacer.gif&gt;
&lt;http://www-morganstanley.com/img/cs/spacer.gif&gt;</td></tr><tr><td>&lt;http://www.morganstanley.com/i=g/cs/spacer.gif&gt;</td></tr><tr><td>&lt;http://www.morganstanley.com/img/cs/spacer.g=f&gt; Wealth management</td></tr><tr><td>&lt;http://www.morganstanley.com/img/cs/spacer.g=f&gt;</td></tr><tr><td>&lt;http://www.morganstanley.com/img/cs/spacer.g=f&gt;</td></tr><tr><td>&lt;http://www.morganstanley.com/i=g/cs/spacer.gif&gt;</td></tr><tr><td>&lt;http://www.morganstanley.com/img/cs/spacer.g=f&gt;</td></tr><tr><td>Subscription N-tification: July 21</td></tr><tr><td>&lt;http://www.morganstanley.com/i=g/cs/spacer.gif&gt;</td></tr><tr><td>&lt;http://www-morganstanley.com/img/cs/spacer.gif&gt;</td></tr><tr><td>&lt;http://www.morganstanley.com/img/cs/spacer.g=f&gt;</td></tr><tr><td>BNY Mellon: 2016 First Pass: In Line as Gross Margins Offset Expense Bea=</td></tr><tr><td>&lt;http://linkback.morganstanley.com/web-sendlink/webapp/f/7ctqq780-3pif-g000-9a31-</td></tr><tr><td>005056028300?store=1&amp;d=Uw=SZXNIYXJjaF9NUwBkYjlkNDE30C00ZDQyLTExZTYtODI4Zi03YTRmNjljMzEzMmQ%3D&amp;use
==iwbt68jbgq60t3-0&amp;__gda__=1532261053_e1045fb1d18a68f90cf7bc7ecb5b48=f&gt;</td></tr></table>

Betsy L. Graseck, CFA — Morgan Stanley4=2>

July 21, 2016 12:02 PM GMT

2Q16 Earnings:BK reported operating EPS of $0.76=(vs. MSe/cons $0.75) on better expenses ($2.61bn vs. MSe $2.63bn) and bette= credit (provision of -$9mn vs. MSe +$8mn).Top-line 3c weaker on lower NIM (=.97% vs. MSe 1.02%) and weaker than expected FX revs (BK calling out lower v=lumes).AUC/AUM beat estimates, with inflows into LDI and market appreciatio= offsetting outflows in index.Estimates likely unchanged given expense disc=pline is offsetting challenged top-line. Mgmt commentary on back half of 20=6 trajectory, and any lumpy items on the expense front for 'Living Will' an= other reg initiatives, will be closely watched.Positives:Expenses lc bette= as BK reduced staff expenses in the quarter.Provision lc better at -$9mn (=s. MSe +$8mn), similar to NTRS yesterday. Don't expect investors to give mu=h credit here, given the relatively volatile nature of the provision line a= trust banks.Taxes is better.Negatives:Nll lc worse as NIM came in weaker t=an expected (0.97% vs. MSe 1.02%).Fee income 2c worse on weaker FX revs and=other fee income.Key Questions for the Call:Excess deposit runoff and resul=ant SLR progress, NIM outlook, BlockChain initiatives, asset management bou=ique expansion plans, plans to manage client AUM ahead of Oct MMF reform, p=an/timing for additional pref issuance (BK included pref for common swap in=its 2016 capital plan).Call Details:Today at 8am eastern. Dial-in: (888) 89=-7224; Passcode: 619690.

Click here</=> to see the full report. <http://linkback.morganstanley.com/web/sendlink/=ebapp/f/7ctqq780-3pif-g000-9a31-

005056028300?store=1&d=UwBSZXNIYXJjF9NUwBkYjlkNDE3OC00ZDQyLTEExZTYtODI4Zi03YTRmNjljMzEzMmQ%3D&us
er=iwbt68=bgq60t3-0&_gda_=1532261053_e1045fb1d18a68f90cf7bc7ecb5b48df>

This alert is sent from:

Andrew Atlas,

=20

You received this because you asked to be=alerted to: THE BANK OF NEW YORK MELLON CORPORATION Please contact your FA if you want to unsubscribe from the alert=.

Disclosures:

Please see the full report for risks, disclosures and oth=r important information.

Important disclosures regarding the relationship between the companies that a=e referenced in Morgan Stanley research and Morgan Stanley Wealth Management= research are available on the Morgan Stanley Wealth Management disclosure w=bsite at https://www.morganstanley.com/online/researchdisclosures <https://www.morganstanley.com/online/researchdisclosure=> .

Morgan Stanley Wealth Management Not Acting as Municipal Advisor Morgan Stanley Wealth Management is not acting as a municipal advisor t= any municipal entity or obligated person within the meaning of Section 15B=of the Securities Exchange Act (the "Municipal Advisor Rule") and the opini=ns or views contained herein are not intended to be, and do not constitute,=advice within the meaning of the Municipal Advisor Rule.

## Copyright

The copyright in materials provided by Morgan Stanley is owned by Morga= Stanley & Co. LLC. Morgan Stanley Wealth Management is the trade name o= Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United S=ates.

## Copyright (cont.)

<table><tr><th colspan="2">© 2016 Morgan Stanley Smith Barney LLC. Member SIPC.-/p&gt; &lt;http://www.morganstanley.com/img/cs/spacer.g=f&gt;</th></tr><tr><td>&lt;http://www.morganstanley.com/im=/cs/spacer.gif&gt;
&lt;http://www.morganstanley.com/im=/cs/spacer.gif&gt;
&lt;http://www.morganstanley.com/im=/cs/spacer.gif&gt;
&lt;http://www.morganstanley.com/img/cs/spacer.gif&gt;</td><td>&lt;http://www.morganstanley.com/i=g/cs/spacer.gif&gt;
&lt;http://www.morganstanley.com/i=g/cs/spacer.gif&gt;</td></tr><tr><td>&lt;http://www.morganstanley.com/img/cs/spacer.gif&gt;</td><td>&lt;http://www.morganstanley.com/img/cs/spacer.gif&gt;</td></tr><tr><td>&lt;http://www.morganstanley.com/img/cs/pacer.gif&gt;</td><td>&lt;http://www.morganstanley.com/img/cs/spacer.gif&gt;</td></tr><tr><td>&lt;http://www.morganstanley.com/img/cs/pacer.gif&gt;</td><td>&lt;http://www.morganstanley.com/img/cs/pacer.gif&gt;</td></tr><tr><td>&lt;http://www.morganstanley.com/img/cs/pacer.gif&gt;</td><td>&lt;http://www.morganstanley.com/img/cs/=pacer.gif&gt;</td></tr><tr><td>&lt;http://www.morganstanley.com/img/cs/=pacer.gif&gt;</td><td>&lt;http://www.morganstanley.com/img/cs/spacer.gif&gt;</td></tr><tr><td>&lt;http://www.morganstanley.com/img/cs/spacer.gif&gt;
&lt;http://www.morganstanley.com/img/cs/spacer.gif&gt;</td><td>&lt;http://www.morganstanley.com/img/cs/spacer.gif&gt;</td></tr></table>