Bank of New York Mellon Corp

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

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

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

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

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

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

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

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

Total available funds were $179.2 billion at Sept. 30, 2026, compared with $176.4 billion at Dec. 31, 2025. The increase was primarily due to higher federal funds sold and securities purchased under resale agreements and cash and due from banks, partially offset by lower interest-bearing deposits with the Federal Reserve and other central banks.

Average non-core sources of funds, such as federal funds purchased and securities sold under repurchase agreements, trading liabilities, commercial paper and other borrowed funds, were $30.8 billion for the first nine months of 2026, compared with $22.5 billion for the first nine months of 2025. The increase primarily reflects higher federal funds purchased and securities sold under repurchase agreements.

Average interest-bearing domestic deposits were $158.8 billion for the first nine months of 2026, compared with $147.2 billion for the first nine months of 2025. Average interest-bearing foreign deposits, primarily from our European-based businesses included in the Securities Services and Market and Wealth Services segments, were $101.4 billion for the first nine months of 2026, compared with $97.2 billion for the first nine months of 2025. The changes primarily reflect client activity.

Average payables to customers and broker-dealers were $18.0 billion for the first nine months of 2026

and $15.7 billion for the first nine months of 2025. Payables to customers and broker-dealers are driven by customer trading activity and market volatility.

Average long-term debt was $31.8 billion for both the first nine months of 2026 and the first nine months of 2025.

Average noninterest-bearing deposits increased to $54.3 billion for the first nine months of 2026 from $49.7 billion for the first nine months of 2025, primarily reflecting client activity.

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

Sources of liquidity

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

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

(a) The outlook on the Parent was revised to positive from stable in October 2026.

(b) Represents senior debt issuer default rating.

(c) Represents long-term/short-term issuer credit ratings.

NR – Not rated.

Long-term debt totaled $33.3 billion at Sept. 30, 2026 and $31.9 billion at Dec. 31, 2025. Issuances of $7.6 billion were partially offset by maturities and redemptions of $5.0 billion and a decrease in the fair value of hedged long-term debt. Long-term debt of $500 million matured in October 2026. No long-term debt will mature in the remainder of 2026.

The Parent’s preferred stock totaled $4.3 billion at Sept. 30, 2026 and $4.8 billion at Dec. 31, 2025. Redemptions of the Series F and Series H preferred stock were partially offset by the issuances of Series M and Series N preferred stock. In July 2026, the Parent issued 500,000 depositary shares, each representing a 1/100th interest in a share of the Parent’s Series N Noncumulative Perpetual Preferred Stock. In September 2026, the Parent redeemed all outstanding shares of its Series F preferred stock. See Note 10 of the Notes to Consolidated Financial Statements for additional information on the Parent’s preferred stock.

In October 2026, the Parent issued 1,250,000 depositary shares, each representing a 1/100th interest in a share of the Parent’s Series O Noncumulative Perpetual Preferred Stock. Dividends will accrue at

an annual rate of 7.125% to, but excluding, Dec. 20, 2031, and then at a floating rate equal to the five-year Treasury rate plus 2.192%. Holders of the Series O preferred stock are entitled to receive dividends, if declared by the Parent’s Board of Directors, on March 20, June 20, September 20 and December 20 of each year, commencing March 20, 2027.

The Bank of New York Mellon may issue notes and certificates of deposit (“CDs”). At Sept. 30, 2026 and Dec. 31, 2025, $3.3 billion and $2.5 billion of notes were outstanding, respectively. At Sept. 30, 2026 and Dec. 31, 2025, $3.4 billion and $4.9 billion, respectively, of CDs were outstanding.

The Bank of New York Mellon also issues commercial paper that matures within 397 days from the date of issue and is not redeemable prior to maturity or subject to voluntary prepayment. In the third quarter of 2026, Pershing LLC began issuing commercial paper that matures within 397 days from the date of issue. Total commercial paper outstanding was $6.8 billion and $2.0 billion at Sept. 30, 2026 and Dec. 31, 2025, respectively. The average commercial paper outstanding was $3.0 billion for the first nine

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

Restrictions on our ability to obtain funds from our subsidiaries are discussed in more detail in “Supervision and Regulation – Capital Planning and Stress Testing – Payment of Dividends, Stock Repurchases and Other Capital Distributions” and in Note 18 of the Notes to Consolidated Financial Statements, both in our 2025 Annual Report. At Sept. 30, 2026, nonbank subsidiaries of the Parent had liquid assets of approximately $4.4 billion.

The double leverage ratio is the ratio of our equity investment in subsidiaries divided by our consolidated Parent company equity, which includes our noncumulative perpetual preferred stock. In short, the double leverage ratio measures the extent to which equity in subsidiaries is financed by Parent company debt. As the double leverage ratio increases, this can reflect greater demands on a company’s cash flows in order to service interest payments and debt maturities. BNY’s double leverage ratio is managed in a range considering the high level of unencumbered available liquid assets held in its principal subsidiaries (such as central bank deposit placements and government securities), the Company’s cash generating fee-based business model, with fee revenue representing 72% of total revenue in the third quarter of 2026, and the dividend capacity of our banking subsidiaries. Our double leverage ratio was 119.4% at Sept. 30, 2026 and 118.6% at Dec. 31, 2025, and was within the range targeted by management.

Uses of funds

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

In July 2026, our Board of Directors approved a 19% increase in the quarterly cash dividend on our common stock, from $0.53 to $0.63 per common share. The increased quarterly cash dividend was paid on Aug. 7, 2026. Our common stock dividend payout ratio was 27% for the third quarter of 2026.

In the third quarter of 2026, we repurchased 5.8 million common shares at an average price of $160.51 per common share, for a total cost of $937 million.

Liquidity coverage ratio (“LCR”)

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

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

(a) Primarily includes cash on deposit with central banks.

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

(c) Consolidated HQLA presented before adjustments. After haircuts and the impact of trapped liquidity, consolidated HQLA totaled $165 billion at Sept. 30, 2026 and $186 billion at June 30, 2026, and averaged $140 billion for the third quarter of 2026 and $142 billion for the second quarter of 2026.

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

Net stable funding ratio (“NSFR”)

The NSFR is a liquidity requirement applicable to large U.S. banking organizations, including BNY. The NSFR is expressed as a ratio of the available stable funding to the required stable funding amount over a one-year horizon. Our average consolidated

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NSFR was 129% for the third quarter of 2026 and 130% for the second quarter of 2026.

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

Statement of cash flows

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

Net cash provided by operating activities was $4.2 billion in the nine months ended Sept. 30, 2026, compared with $1.5 billion in the nine months ended Sept. 30, 2025. In the nine months ended Sept. 30, 2026, cash flows provided by operating activities primarily resulted from earnings and changes in accruals and other, net, partially offset by changes in trading assets and liabilities. In the nine months ended Sept. 30, 2025, cash flows provided by operating activities primarily resulted from earnings, partially offset by changes in accruals and other, net and changes in trading assets and liabilities.

Net cash used for investing activities was $17.7 billion in the nine months ended Sept. 30, 2026, compared with $23.5 billion in the nine months ended Sept. 30, 2025. In the nine months ended Sept. 30, 2026, net cash used for investing activities primarily resulted from changes in loans, federal funds sold and securities purchased under resale agreements and investment securities, partially offset by changes in interest-bearing deposits with the Federal Reserve and other central banks. In the nine months ended Sept. 30, 2025, net cash used for investing activities primarily resulted from changes in interest-bearing deposits with the Federal Reserve and other central banks, changes in securities and changes in loans.

Net cash provided by financing activities was $15.3 billion in the nine months ended Sept. 30, 2026, compared with $23.8 billion in the nine months ended Sept. 30, 2025. In the nine months ended Sept. 30, 2026, net cash provided by financing activities primarily resulted from net proceeds from the issuance of long-term debt and changes in federal funds purchased and securities sold under repurchase agreements, commercial paper and deposits, partially offset by repayments, redemptions and repurchases of long-term debt and common stock repurchases. In the nine months ended Sept. 30, 2025, net cash provided by financing activities primarily resulted from changes in deposits, net proceeds from the issuance of long-term debt and changes in payables to customers and broker-dealers, partially offset by repayments, redemptions and repurchases of long-term debt and common stock repurchases.