28
2006 Annual Report 20 / 20 Vision
2006 Annual Report
2020 Vision
We strive to be the acknowledged global leader and preferred partner in helping our clients succeed in the worldrsquos rapidly evolving financial markets
cleWe have a ar
P a g e 1
visionof the future
P a g e 2
Looking forward
evWe see greater complexity in
ery aspect of moving and managing financial assets
speed and efficiencyWe see markets that operate with greater
and include greater participation from investors in all parts of the world
competition and rWe see institutions facing steeper
elying more than ever on specialists like The Bank of New York as providers of information infrastructure and consultative expertise
P a g e 3
pool of assets needing a levWe see a vastly expanded
el of servicing that few providers will be able to match
morWe see more innovation
e collaboration and more linkages and interdependencies between markets
From our position at the center of the global capital markets we at The Bank of New York can glimpse the year 2020 ndash and it appears to hold clear opportunities for our clients our Company and our shareholders
We are taking action to prepare
(left to right)
Gerald L Hassell President
Thomas A Renyi Chairman and Chief Executive Officer
P a g e 5
To Our Shareholders
For years to come we will look back upon 2006 as the year we created a compelling new future for your Company
We delivered on our strategy achieved our performance objectives and identified significant opportunities to accelerate our growth and increase the value we deliver to shareholders We seized those opportunities entering into three major strategic transactions that will in total reshape this Company and reinvigorate our capacity for growth and profitability
Guiding each of these actions was a clear vision of our future potential to help clients succeed in the worldrsquos rapidly evolving global markets In pursuit of that vision we seek to focus exclusively on securities servicing and asset management These are businesses where we have the scale skill and technological advantage to compete successfully operate efficiently and capitalize on favorable growth trends
Each of these actions brings us closer to realizing that vision Together we are confident these actions will create a new more powerful global financial services growth company that is a leader and catalyst in the evolution of our industry ndash a company that delivers excelshylent service and value supports a talented and engaged workforce and provides superior returns for shareholders
Corporate Trust Expansion ndash Enhancing the Business Mix In the first of three milestones in 2006 we acquired JPMorgan Chasersquos corporate trust franchise in exchange for our retail and regional middle-market banking business a transaction we completed in October Through this transaction we exchanged a lower-growth business for one that is high-growth generates high margins and is supported by strong secular trends
The long-term shift away from bank-sourced to capital-markets-based financing is accelerating around the world In addition new and increasingly sophisticated and innovative debt instruments are gaining acceptance These trends create strong growth dynamics that we believe are sustainable and will increase demand for the value-added corporate trust services we offer globally
As a result of the swap transaction we are now the clear leader in global corporate trust and have greatly expanded our presence in international and structured debt which are the fastest-growing segments of the corporate trust market
BNY ConvergEx Group Next we formed BNY ConvergEx Group LLC an entrepreneurial firm that harnesses the powerful and complementary institutional trading and investment techshynology offerings from our organization and Eze Castle Software to propel growth in a dynamic marketplace BNY ConvergEx Group also enjoys an efficient and flexible capital structure to support its future growth
BNY ConvergEx Group joined our trade execution commission management independent research and transition management businesses with Eze Castle Softwarersquos leading order-management capabilities This combination immediately expanded our product offering and enhanced our positioning in the market particularly with hedge funds where Eze Castle Software has been a leading provider GTCR Golder Rauner LLC a private equity firm is a partner in this venture
The new company was launched in October as an affiliate of The Bank of New York which retains 354 ownership
Merger Agreement with Mellon These two transactions helped set the stage for the yearrsquos defining transformational event our agreement in December to merge with Mellon Financial Corporation to create the largest securities servicing and asset management firm globally
This transaction will combine two powerful franchises with leadership positions in a wide array of complementary businesses and leading client service scores in asset servicing wealth management and issuer clearing and treasury services Together once the merger is complete
P a g e 6
Excludes the impact of the gain on sale of retail net of merger amp integration costs
060504
291
164
Return on Average Common Shareholdersrsquo Equity
166
0000000
4850000
9699999
14549999
19399999
24249998
29099998
168
060504
$393
$185
EarningsPer Share(diluted)
$203
0000000
0655001
1310001
1965002
2620002
3275003
00
11
22
33
44
$226
The Bank of New York Mellon Corporation will have the scale the technology the capital and the people we need to compete and win in the rapidly expanding global marketplace
This proposed merger is groundbreaking from both a strategic and a financial perspective
Strategically speaking we believe the combination will deepen and expand the capabilities of both compashynies and give us a stronger capital base The Bank of New York and Mellon are an extraordinarily good fit in terms of our cultures capabilities and commitment to securities servicing and asset management We will bring to Mellon leadership and capabilities in global corporate trust depositary receipts broker-dealer services and corresponshydent clearing Mellon will expand our presence in asset management and wealth management as it is among the top 10 global asset managers and has a national private wealth management franchise in the United States These are areas that we have been eager to expand to capitalize on favorable growth characteristics profit margins and revenue dynamics
In other areas each organization has a successful franchise with unique strengths These include investor services foreign exchange securities lending global payments and stock transfer By combining our franchises we expect to achieve greater benefits of scale and provide clients with a richer more powerful offering
Financially once the merger is complete it will be quickly and strongly cash-accretive to shareholders of both companies and offer substantial cost and revenue synergies
The combined company is expected to have annual revenues of more than $12 billion with asset manageshyment and asset servicing contributing nearly one-third
each and issuer services treasury services and clearing services comprising the remainder More than a quarter of combined revenue will be derived internationally The Bank of New York Mellon will be poised to capitalize on global growth trends including the evolution of emerging markets the growth of hedge funds and alternative asset classes the increasing need for more complex financial products and services and the growing demand for retirement planning among consumers worldwide
We anticipate that the proposed merger will result in better service and value for clients more rewarding opportunities for our staff and superior returns for you our shareholders
The transaction has been unanimously approved by each companyrsquos board of directors and is expected to be completed in the third quarter of 2007 subject to regulatory and shareholder approvals
Performance Highlights As these transformative actions unfolded we continued to deliver solid consistent operating performance highlighted by success in growing the top line and delivering the inherent operating leverage our model offers
For the full year 2006 net income was $301 billion and diluted earnings per share were $393 This record level includes the gain on the sale of the retail and middle-market businesses On an adjusted basis excluding merger and integration costs and the gain on sale diluted earnings per share were $226 an increase of more than 11 over $203 in 2005 and net income was $173 billion compared with $157 billion last year All capital ratios remained at or above target levels and the Company delivered outstanding credit quality with historically low credit costs Our strong broad-based
P a g e 7
123106123105123104
$97$109
$130
$70 $75 $83
$27$34
$47
Assets UnderCustody(in trillions)
Cross-borderDomestic US
0000000
3550005
7100010
10650015
14200020
17750025
123106123105123104
$35
Assets UnderManagement(in billions)
$50
Currency overlay and short-term investment funds
0000000
31666667
63333333
95000000
126666667
158333333
190000000
$102 $105
$59
$131
Asset Management Sector
$137$155
$190
financial performance enabled us to again increase our quarterly dividend
Our results demonstrated the power of our business model and our ability to capitalize on the increased globalization of financial markets and asset flows Let me isolate a few key metrics that illustrate how we benefited from heightened market activity in 2006 starting with cross-border assets under custody which were up 38 from 2005 compared to total assets under custody which grew 19 Cross-border assets now represent over 36 of total assets under custody a percentage that continues to steadily increase The depositary receipt marketplace is another helpful barometer Here US trading volumes and values were up 34 and 50 respectively reflecting the continued growth of cross-border investing activity and contributing to another record year for our depositary receipt business Each of our business lines is global positioning us to benefit from this secular trend for years to come
One of Americarsquos Most Admired Banks In 2006 The Bank of New York ranked first in our category in Fortunersquos list of Americarsquos Most Admired Companies an annual report card on corporate reputations The list reflects the input of executives directors and analysts in our industry who evaluated us alongside our competitors on eight key attributes quality of management quality of products and services innovation long-term investment value financial soundness ability to attract develop and keep talented people social responsibility and use of corporate assets This mark of distinction validates that we are upholding our commitment to do right by our clients employees shareholders and the community at large
This top ranking was just one of many awards and recognitions received during the year
A Promising Outlook We entered 2007 with great momentum a strengthened business profile and a generally favorable environment Given those factors along with our pending merger with Mellon and our demonstrated success in executing our strategic and financial goals we have greater confidence in our ability to achieve strong results this year and beyond
Our strong strategic progress and financial performshyance in 2006 reflect the leadership guidance and service of our Board of Directors We offer our gratitude and best wishes to John C Malone and Brian L Roberts who will not stand for re-election to the Board after 21 and 8 years of service respectively
On behalf of our Board of Directors and senior management I wish to offer my appreciation to the people of The Bank of New York They work diligently each and every day so that we can realize the full potential of our vision for the benefit of our clients communities and shareholders We look forward to delivering on the promise of our more powerful franchise
Thomas A Renyi Chairman and Chief Executive Officer
P a g e 8
Financial Highlights The Bank of New York Company Inc 2006 Annual Report is in two parts This is part one The accompanying Form 10-K is part two
Selected Financial Data (Dollars in millions except per share amounts and unless otherwise noted) 2006(1) 2005 2004
Net Interest Income $ 1499 $ 1340 $ 1157 Noninterest Income 5322 4698 4377
Revenue 6821 6038 5534 Provision for Credit Losses (20) (7) (4) Noninterest Expense 4671 4067 3698
Income from Continuing Operations Before Income Taxes 2170 1978 1840 Income Taxes 694 635 587
Income from Continuing Operations 1476 1343 1253 Income from Discontinued Operations Net of Taxes 1535 228 187
Net Income $ 3011 $ 1571 $ 1440
Basic EPS Income from Continuing Operations $ 195 $ 175 $ 163 Net Income 398 205 187
Diluted EPS Income from Continuing Operations 193 174 161 Net Income(2) 393 203 185
Cash Dividends Per Share 086 082 079
At December 31 Securities $ 21106 $ 27218 $ 23770 Loans 37793 32927 28375 Total Assets 103370 102118 94529 Deposits 62146 49787 43052 Long-Term Debt 8773 7817 6121 Common Shareholdersrsquo Equity 11593 9876 9290 Market Capitalization (In billions) 298 246 260
Common Shares Outstanding (In millions) 755861 771129 778121 Employees (Continuing Operations) 22961 19944 19646
Ratios Performance Ratios Return on Average Common Shareholdersrsquo Equity 2914 1659 1637 Return on Average Tangible Common Shareholdersrsquo Equity 5925 3113 3146 Return on Average Assets 282 155 145 Return on Average Tangible Assets 301 165 154 Net Interest Margin (Continuing Operations) 201 202 179 Pre-Tax Operating Margin (Continuing Operations) 32 33 33 Common Equity to Assets Ratio 1121 967 983 Common Dividend Payout Ratio 2178 4100 4222 Dividend Yield 22 26 24
Capital Ratios Tier 1 Capital Ratio 819 838 831 Total Capital Ratio 1249 1248 1221 Leverage Ratio 667 660 641 Tangible Common Equity Ratio 513 557 556
Other Data Assets Under Custody and Administration (In trillions) - Estimated Total Assets Under Custody $ 130 $ 109 $ 97
Equity Securities 33 32 35 Fixed Income Securities 67 68 65
Amount Cross-Border $ 47 $ 34 $ 27
Assets Under Management (In billions) - Estimated Asset Management Sector
Equity Securities $ 39 $ 37 $ 36 Fixed Income Securities 21 20 22 Alternative Investments 33 15 15 Liquid Assets 38 33 29
Total Asset Management Sector 131 105 102 Foreign Exchange Overlay 11 10 9 Securities Lending Short-Term Investment Funds 48 40 26
Total Assets Under Management $ 190 $ 155 $ 137
(1) The Companyrsquos Retail Business sold to JPMorgan Chase amp Co on October 1 2006 has been accounted for as discontinued operations (2) Excluding the $2159 million of pre-tax gain on the sale of the Retail Business and $151 million of pre-tax merger and integration costs diluted earnings per share would have been $226 in 2006
P a g e 9
Given the power of our business model we see the potential to deliver sound financial performance well into the future
raquoWe see opportunities to lead grow and generate attractive returns
raquoWe see opportunities to distinguish our Company through leadership innovation and the breadth of our institutional service offering
raquoWe see opportunities to expand our presence in asset management and private banking
raquoWe see opportunities to enter new markets develop new revenue streams and increase the value we deliver in the securities servicing businesses where we are market leaders today
We are acting to capitalize
Wsee e
new a v e n u e s to create our own g r o w t h
P a g e 1 1
Shareholders see new revenues to drive performance
We are discovering opportunities in high-growth markets and seizing them positioning our Company to build new revenue streams win more than our share of new business and fill increasingly important needs for our clients
Two notable growth stories are our hedge fund and Exchange Traded Fund (ETF) servicing businesses where the growing popularity of these investment vehicles is building demand for our products and services
In fact last fall we co-authored a study that predicts that global institutional demand for hedge funds will triple in the next five years increasing from $360 billion currently to more than $1 trilshylion by 2010 This trend plays to our advantage We offer hedge funds the combined strength of our banking cash management broker-dealer and hedge fund administration services ndash delivered by experts dedicated to the hedge fund industry This powerful integrated model is driving rapid growth in assets under administration
The ETF market has also been undergoing rapid growth as these products become more accepted as an alternative to mutual funds We provide custody fund administration sub-advisory and other services to roughly one in three funds
a demonstration of the value clients place on our experience in working with sponsors to bring new products to the market This expertise positions us to win more than our share of a market that is expected to grow to more than $1 trillion by the end of the decade
We are also creating new growth opportunities in more established business lines
Take depositary receipts (DRs) where we structure and administer vehicles that facilitate cross-border investing DRs continue to be considshyered the most convenient international investment vehicle for both individuals and institutions investshying across borders As evidence of this DR trading values have grown at a rate of nearly 40 over the last four years 2006 was a record year in terms of DR trading value and volume and we made the most of the robust environment With merger and acquisition activity strong we combined our DR and stock transfer tender and exchange services to create a clear competitive advantage as the only provider to offer both services in-house As a result we were selected to act as depositary stock transfer agent and tender and exchange agent for the largest-ever merger and acquisition transaction using DRs
Wsee e
i n n o v a t i o n driving our f u t u r e
P a g e 1 3
rsquo
Clients see imagination drivingtomorrowrsquos solutions
From our position at the crossroads of the global capital markets we find inspiration for the next generation of products our clients will require to evolve grow and succeed
This advantage is reflected in our long history of creating breakthrough ideas and our strong reputation for delivering those new ideas to our clients In fact we have over 20 patents pending for new processes and groundbreaking technologies
This year we introduced a patent-pending tri-party deal-matching application that brings online automation to the buyers and sellers in the tri-party repurchase agreement market ndash a primary means of funding for broker-dealers ndash positioning our clients to improve efficiency by replacing the traditional manually intensive method of confirming tri-party transactions via phone or fax This solution is further evidence of our progress in using technology to transform historic market practices and create a distinct competitive advantage
Combining our expertise in depositary receipts and ETFs we developed a process that allows for the trading of commodities in ETF form Using that patent-pending process we have launched gold silver and platinum in ETF form and there s more to come It is a service no provider can match
To further our record of achievement during 2006 we created the Office of Innovation a research and development laboratory focused on accelerating the pace of new product introduction Early efforts center on expanding our capabilities in the areas of collateral management and on derivative and hedge fund servicing
This new effort is institutionalizing the innovation process providing additional funding and resources to ensure we continue to lead and advancing the tradition of innovation throughout our Company
Wsee e
a w o r l d of o p p o r t u n i t y
P a g e 1 5
Clients see a world without borders
We provide the global capabilities regional support and local market knowledge clients need to move and manage assets anywhere in the world
During 2006 we made significant progress in expanding our institutional services to serve clients in new markets globally
The expansion of our corporate trust franchise has greatly increased the global reach of our trust business We gained seven new offices in Asia five in Europe and three in Latin America ndash all areas with excellent growth prospects
In Europe rapid growth in financial assets and the adoption of new products sets the stage for continued robust growth To capitalize during 2006 we expanded our asset management presence by acquiring 80 ownership interest in Alcentra Group Limited a UK-based asset manager specializing in sub-investment-grade debt fund management and structured credit both of which are increasingly popular investment strategies
We also acquired the remaining 50 interest in our Dublin fund administration company AIBBNY Securities Services the second-largest
player in a market where our business has grown at a rate of 25 per year over the last two years
In Asia-Pacific there has been a significant increase in wealth creation that has arisen from strong economic growth in many parts of the region This combined with historically high savings rates and the continued development of the Asian financial markets has driven healthy demand for a wide range of The Bank of New Yorkrsquos services To support this growth we created a securities company in Japan to better serve Japanese clients in the areas of global custody securities lending collateral management offshore fund administration and depositary receipt services
In addition we expanded our global fund services unit in Singapore to assist clients that are creating or managing pooled investment vehicles in the Asian markets
Through these actions we are fueling our own growth and advancing our ability to help clients successfully navigate an increasingly complex global marketplace
Wsee e
o p p o r t u n i t i e s to
l e a d
P a g e 1 7
rsquo
rsquo
rsquo
Others see standards to follow
Through the years we have been instrumental in shaping the evolution of our industry developing solutions that become the industry model and acting as thought leaders on issues vital to our clients
Corporate trust is a business in which we stand above and apart A longtime leader in the United States the Bank has become the leader worldwide through the aquisition of JPMorgans corporate trust franchise positioning us to raise the bar even higher As markets worldwide shift from bank financing to tap into the capital markets the use of specialized debt structures will increase Consequently issuers will have a greater need for the advanced capabilities and higher level of servicing we provide
Foreign exchange is another area in which we are a true standard-bearer as evidenced by recent awards and recognitions (see page 22) In 2006 The Bank of New York set a new benchmark for foreign exchange research and analysis through the introduction of interactive research tools podcasts and daily currency commentaries The Banks intershyactive Portfolio Flow Monitor (iPFM) in particular is an unparalleled decision-making tool providing clients world-class research data and real-time information on the world s largest database of capital flows
While setting high standards ourselves we are committed to sharing best practices with our clients and the marketplace
bull With hedge fund investing growing in popularity we issued Hedge Fund Operational Risk Meeting the Demand for Higher Transparency and Best Practice a research report which identifies the key operational risks institutions need to assess before investing
bull A View from the Top Best Practices in Leveraging Human Capital a study sponsored by Pershing is intended to help independent investment advisors make their businesses more successful by identifying and examining best practices for attracting hiring and retaining employees
bull We also issued Preparing for Shutdown a white paper on investment and allocation practices of nuclear decommissioning trusts (NDTs) that includes a checklist of best practices for effective NDT management related to areas such as liability estimates asset allocation risk management and regulatory changes
Through consultative outreach like this we are helping keep our clients at the forefront in areas that matter most to them
Wseeestrong client relationships
as vital to our future
P a g e 1 9
Clients see a partner attuned to their future needs
We create a significant portion of our organic growth by expanding relationships with clients Our success in winning new business from existing clients confirms our success in creating good value forging strong bonds and delivering outshystanding service
At the core of our success are client executive teams which focus on providing solutions for our institutional clients and anticipating their future needs Our client executives have a 360-degree relationship view From this vantage point they gain insights into the needs of the complex institutions we serve and can harness the combined power of our product lines for our clientsrsquo benefit In doing so they are positioning the Company to build mutually successful multi-product relationships
Our relationships with leading banks and financial institutions in emerging markets have evolved as their international reach and capabilities have expanded and as The Bank of New York has been able to support the growth and development of their activities A prime example is Industrial and Commercial Bank of China Limited (ICBC) the largest commercial bank in the Peoplersquos Republic of China Our involvement with ICBC initially focused on providing global payments products
and services that meet the needs of their clients In recent years our relationship has expanded to include custody and related services Additionally with the adoption of Qualified Domestic Institutional Investor (QDII) and Qualified Foreign Institutional Investor (QFII) regulations we continue to work together as each otherrsquos custodian to jointly support overseas investments into and from mainland China
Another prime example is our long-standing relationship with Countrywide Financial Corporation the largest home lender in the United States We provide Countrywide a one-stop service from the initial funding of mortgage loans through to their eventual securitization where we act as trustee on over $300 billion of securitized product As Countrywide has grown in both sophistication and global reach our relationship has expanded accordingly and now includes securities clearing and tri-party repo collateral management for both Countrywide and its broker-dealer Countrywide Securities
As these relationships attest and as our clients continue to grow and expand we are poised to exercise our capabilities in order to benefit from their growth
Wsee e
corporate r e s p o n s i b i l i t y as the core of
who we are
P a g e 2 1
rsquo
Our communities see a company that cares at its core
Corporate responsibility is in our DNA and it remains a source of pride and a competitive advantage in all that we do
It is a pledge The Bank of New York makes to all our constituents that we will
bull Hold ourselves to the highest standards of performance and business ethics
bull Foster an environment where employees can contribute grow and excel
bull Provide clients with superior service value and transparency
bull Build relationships with diverse suppliers vendors and business associates and
bull Make a positive difference in the communities where we live and work
To us corporate responsibility is not just the right way to do business ndash it is the only way And it makes good business sense Responsible behavior is essential to strengthening our ties with clients and other business partners and retaining the best staff
Toward that goal we recently launched new worklife programs to provide the benefitsresources
and support employees need to succeed on both fronts including flexible work arrangements and enhanced maternity parental and adoption leaves in the United States and a childcare voucher program in the UK to help make childcare costs more affordable
We also formed womens and multicultural affinity groups to act as an internal resource for professional development through networking and through skills- and knowledge-building programs
Our commitment to our community is exemplified by our strong tradition of generously supporting arts and cultural institutions educashytional causes and local charitable organizations Last year the Company and its employees were the leading source of corporate contributions to United Way of New York City we again served as a flagship sponsor of the Making Strides Against Breast Cancer walk and we provided substantial support for Richard House Hospice a center for terminally ill children in London
The people of The Bank of New York really care and they channel that compassion in ways that make a real difference in our communities
P a g e 2 2
Awards and Recognitions
The awards we win and top rankings we achieve are testament to our success in creating outstanding value delivering a superior client
experience and earning the confidence of our clients each and every day
One of Americarsquos Most Admired Banks ndash Fortune Magazine 2006
Innovation Winner (in partnership with British Telecom) ndash The Banker rsquos 2006 Technology Awards
1 Overall US Trustee in 2006 ndash
Thomson Financial by number of issues
Best Custody Bank (Seventh consecutive year) ndash
Global Finance 2006
1 Custodial Lender ndash ISF and Global Investor 2006
1 in Depositary Receipts by every market metric
Best Foreign Exchange Research Worldwide ndash
Global Finance 2006
Best Provider of Foreign Exchange Services
Overall in Europe ndash Global Investor 2006
Best Capital Flow Research ndash
Global Investor 2006
Ireland Fund Administrator of the Year ndash
International Custody amp Fund Administration 2006
1 Securities Lending Agent ndash
Global Custodian 2006
Best US Sub-Custodian ndash
Global Finance 2006
Best US Transfer Agent (Fifth consecutive year) ndash
Group Five Inc 2006
P a g e 2 3
Our Businesses
Securities Services We offer a comprehensive array of innovative and specialized securities services to global investors financial intermediaries and virtually any issuer of debt or equity instruments
Within this core competency we are market leaders across all of our major product and service lines a reflection of our unrivaled commitment to securities servicing
The breadth of our product suite ndash unmatched by any provider ndash enables us to support any security or transaction type anywhere in the world offering financial institutions a single source for all their investment needs
raquo Clearing and Financial Advisor Services
raquo Custody Services raquo Global Fund Services raquo Securities Lending raquo Collateral Management
Services raquo Corporate Trust Services raquo Depositary Receipts raquo Transfer Agency Services raquo Execution Services raquo Independent Research
Treasury Management Services Our treasury management services help corporations financial institutions and small- to mid-sized companies optimize cash flow raise capital manage liquidity and conduct international commerce
The Bank of New York provides payment and trade services in virtually every major global market and is a major market maker in the areas of foreign exchange and interest-rate risk management services We offer active and indexed investment options to manage liquidity and provide a full range of financing and capital markets services
raquo Global Payment Services raquo Capital Markets raquo Global Markets raquo Global Trade Services raquo Liquidity Services
Asset Management Services We manage assets for some of the wealthiest individuals largest corporations and most prestigious organizations around the world applying a broad spectrum of investment strategies and wealth management capabilities to unlock the potential of our clientsrsquo assets
We deliver solid performance across a range of equity fixed income and alternative investment strategies and consistently create innovative investment solutions for corporations public funds endowments and foundations
raquo Institutional Asset Management Services
raquo Personal Asset Management Services
The Private Bank The Bank of New York is a trusted investment advisor to high-net-worth individuals and families working with them to find ways to grow and preserve their wealth for future generations
We offer a broad scope of trust fiduciary and banking services along with investment financial estate and tax planning ndash all backed and informed by the collective wisdom of managing wealth for more than two centuries
raquo Customized Banking raquo Financial Planning raquo Personal Custody raquo Trust amp Estate Services
P a g e 2 4
Directors and Officers
Board of Directors of The Bank of New York Company Inc
Frank J Biondi Jr Senior Managing Director
WaterView Advisors LLC
Nicholas M Donofrio Executive Vice President
Innovation and Technology IBM Corporation
Gerald L Hassell President
The Bank of New York Company Inc and The Bank of New York
Richard J Kogan Retired President and Chief Executive Officer
Schering-Plough Corporation
Michael J Kowalski Chairman and
Chief Executive Officer Tiffany amp Co
John A Luke Jr Chairman and
Chief Executive Officer MeadWestvaco Corporation
John C Malone Chairman
Liberty Media Corporation
Catherine A Rein Senior Executive Vice President
and Chief Administrative Officer MetLife Inc
Thomas A Renyi Chairman and
Chief Executive Officer The Bank of New York Company Inc
and The Bank of New York
William C Richardson President and
Chief Executive Officer Emeritus WK Kellogg Foundation
Brian L Roberts Chairman and CEO Comcast Corporation
Samuel C Scott III Chairman President and
Chief Executive Officer Corn Products International Inc
Richard C Vaughan Retired Executive Vice President
and Chief Financial Officer Lincoln National Corporation
Executive Officers of The Bank of New York Company Inc
Thomas A Renyi Chairman and
Chief Executive Officer
Gerald L Hassell President
John M Liftin Vice Chairman and
General Counsel
Bruce W Van Saun Vice Chairman
Thomas P Gibbons Senior Executive Vice President
and Chief Financial Officer
James R Vallone Auditor
Thomas J Mastro Comptroller
Senior Officers of The Bank of New York
Donald R Monks Vice Chairman and Chief
Administrative Officer
Torry Berntsen Senior Executive Vice President
Richard F Brueckner Senior Executive Vice President
Timothy F Keaney Senior Executive Vice President
Kenneth A Lopian Senior Executive Vice President
Karen B Peetz Senior Executive Vice President
Brian G Rogan Senior Executive Vice President
Kurt D Woetzel Senior Executive Vice President and Chief Information Officer
P a g e 2 5
Shareholder Information
Des
igne
d an
d Pr
oduc
ed b
y Ta
ylor
amp I
ves
Inc
N
YC
The Bank of New York Company Inc is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies securities servicing treasury management asset management and private banking The Company rsquos extensive global client base includes a broad range of leading financial institutions corporations government entities endowments and foundations Its principal subsidiary The Bank of New York founded in 1784 is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide Additional information is available at wwwbankofnycom
Headquarters One Wall Street New York NY 10286 212 495 1784 wwwbankofnycom
Annual Meeting of Shareholders The Bank of New York 101 Barclay Street New York NY 10286 April 10 2007 at 9 am
SEC Filings Copies of the Company rsquos filings with the SEC are available on our website wwwbankofnycom
Form 10-K A copy of the Company rsquos Annual Report on Form 10-K to the Securities and Exchange Commission is available on our website wwwbankofnycom It will also be furnished free of charge upon written request to The Bank of New York Corporate Communications One Wall Street 31st Floor New York NY 10286
Securities Listing The Common Stock (symbol BK) BNY Capital IV 6875 Preferred Trust Securities Series E (symbol BKPrE) and BNY Capital V 595 Preferred Trust Securities Series F (symbol BKPrF) are listed on the New York Stock Exchange
Dividend Disbursement Agent Registrar and Transfer Agent for Common and Preferred Stock
Registered shareholders who need to change their address or transfer shares should send instructions to The Bank of New York Receive and Deliver Department ndash 11W Church Street Station PO Box 11002 New York NY 10286-1002
Independent Accountants Ernst amp Young LLP 5 Times Square New York NY 10036
Dividend Reinvestment and Direct Stock Purchase and Sale Plan Participants in the Companyrsquos Dividend Reinvestment and Direct Stock Purchase and Sale Plan may purchase shares of the Companyrsquos Common Stock conveniently and without fees or commissions through dividend reinvestment or direct cash payments
For a Prospectus Containing More Information Please contact The Bank of New York Shareholder Relations Church Street Station PO Box 11258 New York NY 10286-1258 888 643 4269 or email shareownersbankofnycom Web address wwwstockbnycom Registered shareholders with questions about their accounts may also contact the above
Inquiries Shareholders and analysts seeking information about the Company should contact The Bank of New York Investor Relations One Wall Street 31st Floor New York NY 10286 212 635 1855 or email investorrelationsbankofnycom
The news media and others seeking inforshymation about the Company should contact The Bank of New York Corporate Communications One Wall Street 31st Floor New York NY 10286 212 635 1569
Equal Employment Opportunity and Affirmative Action Policy It is the policy of The Bank of New York Company Inc to provide equal employshyment opportunity to all employees and applicants for employment without regard to race color creed religion sex national origin ancestry citizenship status age marital status sexual orientation physical or mental disability veteran status liability for service in the Armed Forces of the United States or any other classification prohibited by applicable law This commitshyment to Equal Employment Opportunity and Affirmative Action reflects the Companyrsquos belief that equal employment opportunity makes sense from a moral social and economic point of view
The Bank of New York Company Inc
One Wall Street New York NY 10286 212 495 1784wwwbankofnycom
copy 2007 The Bank of New York Company Inc All rights reserved