Delaware | 1585 Broadway | 36-3145972 | (212) | 761-4000 | |||||||||||||||||||
(State or other jurisdiction of incorporation or organization) | New York, | NY | 10036 | (I.R.S. Employer Identification No.) | (Registrant’s telephone number, including area code) | ||||||||||||||||||
(Address of principal executive offices, including zip code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||
Common Stock, $0.01 par value | MS | New York Stock Exchange | ||||||
Depositary Shares, each representing 1/1,000th interest in a share of Floating Rate | MS/PA | New York Stock Exchange | ||||||
Non-Cumulative Preferred Stock, Series A, $0.01 par value | ||||||||
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate | MS/PE | New York Stock Exchange | ||||||
Non-Cumulative Preferred Stock, Series E, $0.01 par value | ||||||||
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate | MS/PF | New York Stock Exchange | ||||||
Non-Cumulative Preferred Stock, Series F, $0.01 par value | ||||||||
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate | MS/PI | New York Stock Exchange | ||||||
Non-Cumulative Preferred Stock, Series I, $0.01 par value | ||||||||
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate | MS/PK | New York Stock Exchange | ||||||
Non-Cumulative Preferred Stock, Series K, $0.01 par value | ||||||||
MS/PL | New York Stock Exchange | |||||||
Non-Cumulative Preferred Stock, Series L, $0.01 par value | ||||||||
Depositary Shares, each representing 1/1,000th interest in a share of 4.250% | MS/PO | New York Stock Exchange | ||||||
Non-Cumulative Preferred Stock, Series O, $0.01 par value | ||||||||
Global Medium-Term Notes, Series A, Fixed Rate Step-Up Senior Notes Due 2026 | MS/26C | New York Stock Exchange | ||||||
of Morgan Stanley Finance LLC (and Registrant’s guarantee with respect thereto) |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
Table of Contents | Table of Contents | Part | Item | Page | Table of Contents | Part | Item | Page | ||||||||||||||||||||
I | I | |||||||||||||||||||||||||||
I | 2 | I | 2 | |||||||||||||||||||||||||
I | 3 | I | 3 | |||||||||||||||||||||||||
I | 1 | I | 1 | |||||||||||||||||||||||||
I | 4 | |||||||||||||||||||||||||||
II | II | |||||||||||||||||||||||||||
II | 1 | II | 1 | |||||||||||||||||||||||||
II | 1A | II | 1A | |||||||||||||||||||||||||
II | 2 | II | 2 | |||||||||||||||||||||||||
I | 4 | |||||||||||||||||||||||||||
II | 5 | |||||||||||||||||||||||||||
II | 6 | II | 6 | |||||||||||||||||||||||||
i |
ii |
1 |
Management’s Discussion and Analysis |
2 |
Management’s Discussion and Analysis |
3 |
Management’s Discussion and Analysis |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Consolidated results | ||||||||||||||
Net revenues1 | $ | 14,759 | $ | 13,660 | $ | 30,478 | $ | 23,439 | ||||||
Earnings applicable to Morgan Stanley common shareholders | $ | 3,408 | $ | 3,047 | $ | 7,390 | $ | 4,637 | ||||||
Earnings per diluted common share | $ | 1.85 | $ | 1.96 | $ | 4.04 | $ | 2.96 | ||||||
Consolidated financial measures | ||||||||||||||
Expense efficiency ratio1, 2 | 69 | % | 66 | % | 68 | % | 70 | % | ||||||
Adjusted expense efficiency ratio1,2,4 | 68 | % | 66 | % | 67 | % | 70 | % | ||||||
ROE3 | 13.8 | % | 15.7 | % | 15.3 | % | 12.2 | % | ||||||
Adjusted ROE3, 4 | 14.1 | % | 15.7 | % | 15.6 | % | 12.2 | % | ||||||
ROTCE3, 4 | 18.6 | % | 17.8 | % | 19.8 | % | 13.9 | % | ||||||
Adjusted ROTCE3, 4 | 19.0 | % | 17.8 | % | 20.1 | % | 13.9 | % | ||||||
Pre-tax margin1, 5 | 31 | % | 32 | % | 33 | % | 28 | % | ||||||
Effective tax rate | 23.1 | % | 25.7 | % | 22.5 | % | 22.8 | % | ||||||
Pre-tax margin by segment5 | ||||||||||||||
Institutional Securities1 | 35 | % | 37 | % | 37 | % | 29 | % | ||||||
Wealth Management1 | 27 | % | 24 | % | 27 | % | 25 | % | ||||||
Wealth Management, adjusted1, 4 | 28 | % | 24 | % | 28 | % | 25 | % | ||||||
Investment Management | 25 | % | 24 | % | 27 | % | 23 | % | ||||||
Investment Management, adjusted4 | 27 | % | 24 | % | 28 | % | 23 | % |
Three Months Ended March 31, | ||||||||||||||
$ in millions | 2022 | 2021 | ||||||||||||
Consolidated results | ||||||||||||||
Net revenues | $ | 14,801 | $ | 15,719 | ||||||||||
Earnings applicable to Morgan Stanley common shareholders | $ | 3,542 | $ | 3,982 | ||||||||||
Earnings per diluted common share | $ | 2.02 | $ | 2.19 | ||||||||||
Consolidated financial measures | ||||||||||||||
Expense efficiency ratio1 | 69 | % | 67 | % | ||||||||||
Adjusted expense efficiency ratio1, 2 | 68 | % | 66 | % | ||||||||||
ROE3 | 14.7 | % | 16.9 | % | ||||||||||
Adjusted ROE2, 3 | 15.0 | % | 17.1 | % | ||||||||||
ROTCE2, 3 | 19.8 | % | 21.1 | % | ||||||||||
Adjusted ROTCE2, 3 | 20.3 | % | 21.4 | % | ||||||||||
Pre-tax margin4 | 31 | % | 34 | % | ||||||||||
Effective tax rate | 19.0 | % | 22.0 | % | ||||||||||
Pre-tax margin by segment4 | ||||||||||||||
Institutional Securities | 36 | % | 39 | % | ||||||||||
Wealth Management | 27 | % | 27 | % | ||||||||||
Wealth Management, adjusted2 | 28 | % | 28 | % | ||||||||||
Investment Management | 17 | % | 28 | % | ||||||||||
Investment Management, adjusted2 | 19 | % | 29 | % |
in millions, except per share and employee data | At June 30, 2021 | At December 31, 2020 | ||||||
Liquidity resources6 | $ | 343,776 | $ | 338,623 | ||||
Loans7 | $ | 166,059 | $ | 150,597 | ||||
Total assets | $ | 1,161,805 | $ | 1,115,862 | ||||
Deposits | $ | 320,358 | $ | 310,782 | ||||
Borrowings | $ | 224,142 | $ | 217,079 | ||||
Common shares outstanding | 1,834 | 1,810 | ||||||
Common shareholders' equity | $ | 99,120 | $ | 92,531 | ||||
Tangible common shareholders’ equity4 | $ | 73,593 | $ | 75,916 | ||||
Book value per common share8 | $ | 54.04 | $ | 51.13 | ||||
Tangible book value per common share4, 8 | $ | 40.12 | $ | 41.95 | ||||
Worldwide employees9 (in thousands) | 72 | 68 | ||||||
Capital Ratios10 | ||||||||
Common Equity Tier 1 capital—Standardized | 16.6 | % | 17.4 | % | ||||
Tier 1 capital—Standardized | 18.3 | % | 19.4 | % | ||||
Common Equity Tier 1 capital—Advanced | 17.7 | % | 17.7 | % | ||||
Tier 1 capital—Advanced | 19.5 | % | 19.8 | % | ||||
Tier 1 leverage | 7.5 | % | 8.4 | % | ||||
SLR11 | 5.9 | % | 7.4 | % |
in millions, except per share and employee data | At March 31, 2022 | At December 31, 2021 | ||||||
Liquidity resources5 | $ | 323,227 | $ | 356,003 | ||||
Loans6 | $ | 208,750 | $ | 200,761 | ||||
Total assets | $ | 1,222,233 | $ | 1,188,140 | ||||
Deposits | $ | 360,840 | $ | 347,574 | ||||
Borrowings | $ | 229,817 | $ | 233,127 | ||||
Common shareholders' equity | $ | 95,151 | $ | 97,691 | ||||
Tangible common shareholders’ equity2 | $ | 70,083 | $ | 72,499 | ||||
Common shares outstanding | 1,756 | 1,772 | ||||||
Book value per common share7 | $ | 54.18 | $ | 55.12 | ||||
Tangible book value per common share2, 7 | $ | 39.91 | $ | 40.91 | ||||
Worldwide employees (in thousands) | 77 | 75 | ||||||
Client assets8 (in billions) | $ | 6,247 | $ | 6,495 | ||||
Capital Ratios9 | ||||||||
Common Equity Tier 1 capital—Standardized | 14.5 | % | 16.0 | % | ||||
Tier 1 capital—Standardized | 16.0 | % | 17.7 | % | ||||
Common Equity Tier 1 capital—Advanced | 15.9 | % | 17.4 | % | ||||
Tier 1 capital—Advanced | 17.6 | % | 19.1 | % | ||||
Tier 1 leverage | 6.8 | % | 7.1 | % | ||||
SLR | 5.5 | % | 5.6 | % |
4 | March 2022 Form 10-Q |
Management’s Discussion and Analysis |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in millions, except per share data | $ in millions, except per share data | 2021 | 2020 | 2021 | 2020 | $ in millions, except per share data | 2022 | 2021 | ||||||||||||||||||||
Earnings applicable to Morgan Stanley common shareholders | Earnings applicable to Morgan Stanley common shareholders | $ | 3,408 | $ | 3,047 | $ | 7,390 | $ | 4,637 | Earnings applicable to Morgan Stanley common shareholders | $ | 3,542 | $ | 3,982 | ||||||||||||||
Impact of adjustments: | Impact of adjustments: | Impact of adjustments: | ||||||||||||||||||||||||||
Wealth Management—Compensation expenses | Wealth Management—Compensation expenses | 1 | 30 | |||||||||||||||||||||||||
Wealth Management—Non-compensation expenses | Wealth Management—Non-compensation expenses | 74 | 34 | |||||||||||||||||||||||||
Investment Management—Compensation expenses | Investment Management—Compensation expenses | 9 | 3 | |||||||||||||||||||||||||
Investment Management—Non-compensation expenses | Investment Management—Non-compensation expenses | 23 | 8 | |||||||||||||||||||||||||
Integration-related expenses | Integration-related expenses | 90 | — | 165 | — | Integration-related expenses | 107 | 75 | ||||||||||||||||||||
Related tax benefit | Related tax benefit | (21) | — | (38) | — | Related tax benefit | (25) | (17) | ||||||||||||||||||||
Adjusted earnings applicable to Morgan Stanley common shareholders—non-GAAP1 | Adjusted earnings applicable to Morgan Stanley common shareholders—non-GAAP1 | $ | 3,477 | $ | 3,047 | $ | 7,517 | $ | 4,637 | Adjusted earnings applicable to Morgan Stanley common shareholders—non-GAAP1 | $ | 3,624 | $ | 4,040 | ||||||||||||||
Earnings per diluted common share | Earnings per diluted common share | $ | 1.85 | $ | 1.96 | $ | 4.04 | $ | 2.96 | Earnings per diluted common share | $ | 2.02 | $ | 2.19 | ||||||||||||||
Impact of adjustments | Impact of adjustments | 0.04 | — | 0.07 | — | Impact of adjustments | 0.04 | 0.03 | ||||||||||||||||||||
Adjusted earnings per diluted common share—non-GAAP1 | Adjusted earnings per diluted common share—non-GAAP1 | $ | 1.89 | $ | 1.96 | $ | 4.11 | $ | 2.96 | Adjusted earnings per diluted common share—non-GAAP1 | $ | 2.06 | $ | 2.22 | ||||||||||||||
Expense efficiency ratio2 | 69 | % | 66 | % | 68 | % | 70 | % | ||||||||||||||||||||
Expense efficiency ratio | Expense efficiency ratio | 69 | % | 67 | % | |||||||||||||||||||||||
Impact of adjustments | Impact of adjustments | (1) | % | — | % | (1) | % | — | % | Impact of adjustments | (1) | % | (1) | % | ||||||||||||||
Adjusted expense efficiency ratio—non-GAAP1, 2 | 68 | % | 66 | % | 67 | % | 70 | % | ||||||||||||||||||||
Wealth Management Pre-tax margin2 | 27 | % | 24 | % | 27 | % | 25 | % | ||||||||||||||||||||
Adjusted expense efficiency ratio—non-GAAP1 | Adjusted expense efficiency ratio—non-GAAP1 | 68 | % | 66 | % | |||||||||||||||||||||||
Wealth Management Pre-tax margin | Wealth Management Pre-tax margin | 27 | % | 27 | % | |||||||||||||||||||||||
Impact of adjustments | Impact of adjustments | 1 | % | — | % | 1 | % | — | % | Impact of adjustments | 1 | % | 1 | % | ||||||||||||||
Adjusted Wealth Management pre-tax margin—non-GAAP1, 2 | 28 | % | 24 | % | 28 | % | 25 | % | ||||||||||||||||||||
Adjusted Wealth Management pre-tax margin—non-GAAP1 | Adjusted Wealth Management pre-tax margin—non-GAAP1 | 28 | % | 28 | % | |||||||||||||||||||||||
Investment Management Pre-tax margin | Investment Management Pre-tax margin | 25 | % | 24 | % | 27 | % | 23 | % | Investment Management Pre-tax margin | 17 | % | 28 | % | ||||||||||||||
Impact of adjustments | Impact of adjustments | 2 | % | — | % | 1 | % | — | % | Impact of adjustments | 2 | % | 1 | % | ||||||||||||||
Adjusted Investment Management pre-tax margin—non-GAAP1 | Adjusted Investment Management pre-tax margin—non-GAAP1 | 27 | % | 24 | % | 28 | % | 23 | % | Adjusted Investment Management pre-tax margin—non-GAAP1 | 19 | % | 29 | % |
$ in millions | At June 30, 2021 | At December 31, 2020 | ||||||
Tangible equity | ||||||||
Common shareholders' equity | $ | 99,120 | $ | 92,531 | ||||
Less: Goodwill and net intangible assets | (25,527) | (16,615) | ||||||
Tangible common shareholders' equity—non-GAAP | $ | 73,593 | $ | 75,916 |
Average Monthly Balance | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Tangible equity | ||||||||||||||
Common shareholders' equity | $ | 98,824 | $ | 77,598 | $ | 96,309 | $ | 75,992 | ||||||
Less: Goodwill and net intangible assets | (25,611) | (9,268) | (21,738) | (9,246) | ||||||||||
Tangible common shareholders' equity—non-GAAP | $ | 73,213 | $ | 68,330 | $ | 74,571 | $ | 66,746 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
$ in billions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Average common equity | ||||||||||||||
Unadjusted—GAAP | $ | 98.8 | $ | 77.6 | $ | 96.3 | $ | 76.0 | ||||||
Adjusted1—Non-GAAP | 98.8 | 77.6 | 96.4 | 76.0 | ||||||||||
ROE3 | ||||||||||||||
Unadjusted—GAAP | 13.8 | % | 15.7 | % | 15.3 | % | 12.2 | % | ||||||
Adjusted1—Non-GAAP | 14.1 | % | 15.7 | % | 15.6 | % | 12.2 | % | ||||||
Average tangible common equity—Non-GAAP | ||||||||||||||
Unadjusted | $ | 73.2 | $ | 68.3 | $ | 74.6 | $ | 66.7 | ||||||
Adjusted1 | 73.2 | 68.3 | 74.6 | 66.7 | ||||||||||
ROTCE3—Non-GAAP | ||||||||||||||
Unadjusted | 18.6 | % | 17.8 | % | 19.8 | % | 13.9 | % | ||||||
Adjusted1 | 19.0 | % | 17.8 | % | 20.1 | % | 13.9 | % |
$ in millions | At March 31, 2022 | At December 31, 2021 | ||||||
Tangible equity | ||||||||
Common shareholders' equity | $ | 95,151 | $ | 97,691 | ||||
Less: Goodwill and net intangible assets | (25,068) | (25,192) | ||||||
Tangible common shareholders' equity—non-GAAP | $ | 70,083 | $ | 72,499 |
Average Monthly Balance | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
$ in millions | 2022 | 2021 | ||||||||||||
Tangible equity | ||||||||||||||
Common shareholders' equity | $ | 96,667 | $ | 94,343 | ||||||||||
Less: Goodwill and net intangible assets | (25,120) | (18,849) | ||||||||||||
Tangible common shareholders' equity—non-GAAP | $ | 71,547 | $ | 75,494 |
Three Months Ended March 31, | ||||||||||||||
$ in billions | 2022 | 2021 | ||||||||||||
Average common equity | ||||||||||||||
Unadjusted—GAAP | $ | 96.7 | $ | 94.3 | ||||||||||
Adjusted1—Non-GAAP | 96.7 | 94.4 | ||||||||||||
ROE2 | ||||||||||||||
Unadjusted—GAAP | 14.7 | % | 16.9 | % | ||||||||||
Adjusted1—Non-GAAP | 15.0 | % | 17.1 | % | ||||||||||
Average tangible common equity—Non-GAAP | ||||||||||||||
Unadjusted | $ | 71.5 | $ | 75.5 | ||||||||||
Adjusted1 | 71.6 | 75.5 | ||||||||||||
ROTCE2—Non-GAAP | ||||||||||||||
Unadjusted | 19.8 | % | 21.1 | % | ||||||||||
Adjusted1 | 20.3 | % | 21.4 | % |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in billions | $ in billions | 2021 | 2020 | 2021 | 2020 | $ in billions | 2022 | 2021 | ||||||||||||||||||||
Average common equity4 | ||||||||||||||||||||||||||||
Average common equity3 | Average common equity3 | |||||||||||||||||||||||||||
Institutional Securities | Institutional Securities | $ | 43.5 | $ | 42.8 | $ | 43.5 | $ | 42.8 | Institutional Securities | $ | 48.8 | $ | 43.5 | ||||||||||||||
Wealth Management | Wealth Management | 28.6 | 18.2 | 28.6 | 18.2 | Wealth Management | 31.0 | 28.5 | ||||||||||||||||||||
Investment Management | Investment Management | 10.7 | 2.6 | 7.1 | 2.6 | Investment Management | 10.6 | 4.4 | ||||||||||||||||||||
ROE5 | ||||||||||||||||||||||||||||
ROE4 | ROE4 | |||||||||||||||||||||||||||
Institutional Securities | Institutional Securities | 17 | % | 19 | % | 20 | % | 13 | % | Institutional Securities | 17 | % | 23 | % | ||||||||||||||
Wealth Management | Wealth Management | 17 | % | 18 | % | 17 | % | 18 | % | Wealth Management | 16 | % | 17 | % | ||||||||||||||
Investment Management | Investment Management | 13 | % | 23 | % | 17 | % | 18 | % | Investment Management | 8 | % | 25 | % | ||||||||||||||
Average tangible common equity4 | ||||||||||||||||||||||||||||
Average tangible common equity3 | Average tangible common equity3 | |||||||||||||||||||||||||||
Institutional Securities | Institutional Securities | $ | 42.9 | $ | 42.3 | $ | 42.9 | $ | 42.3 | Institutional Securities | $ | 48.3 | $ | 42.9 | ||||||||||||||
Wealth Management | Wealth Management | 13.4 | 10.4 | 13.4 | 10.4 | Wealth Management | 16.3 | 13.4 | ||||||||||||||||||||
Investment Management | Investment Management | 1.0 | 1.7 | 1.0 | 1.7 | Investment Management | 0.8 | 1.2 | ||||||||||||||||||||
ROTCE5 | ||||||||||||||||||||||||||||
ROTCE4 | ROTCE4 | |||||||||||||||||||||||||||
Institutional Securities | Institutional Securities | 17 | % | 20 | % | 20 | % | 13 | % | Institutional Securities | 17 | % | 23 | % | ||||||||||||||
Wealth Management | Wealth Management | 37 | % | 32 | % | 36 | % | 32 | % | Wealth Management | 30 | % | 36 | % | ||||||||||||||
Investment Management | Investment Management | 172 | % | 36 | % | 117 | % | 27 | % | Investment Management | 106 | % | 88 | % |
March 2022 Form 10-Q | 5 |
Management’s Discussion and Analysis |
6 |
Management’s Discussion and Analysis |
Three Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | % Change | $ in millions | 2022 | 2021 | % Change | ||||||||||||||
Revenues | Revenues | Revenues | ||||||||||||||||||||
Advisory | Advisory | $ | 664 | $ | 462 | 44 | % | Advisory | $ | 944 | $ | 480 | 97 | % | ||||||||
Equity | Equity | 1,072 | 882 | 22 | % | Equity | 258 | 1,502 | (83) | % | ||||||||||||
Fixed income | Fixed income | 640 | 707 | (9) | % | Fixed income | 432 | 631 | (32) | % | ||||||||||||
Total Underwriting | Total Underwriting | 1,712 | 1,589 | 8 | % | Total Underwriting | 690 | 2,133 | (68) | % | ||||||||||||
Total Investment banking | Total Investment banking | 2,376 | 2,051 | 16 | % | Total Investment banking | 1,634 | 2,613 | (37) | % | ||||||||||||
Equity1 | 2,827 | 2,627 | 8 | % | ||||||||||||||||||
Fixed income1 | 1,682 | 3,041 | (45) | % | ||||||||||||||||||
Other1 | 207 | 480 | (57) | % | ||||||||||||||||||
Equity | Equity | 3,174 | 2,875 | 10 | % | |||||||||||||||||
Fixed income | Fixed income | 2,923 | 2,966 | (1) | % | |||||||||||||||||
Other | Other | (74) | 123 | (160) | % | |||||||||||||||||
Net revenues | Net revenues | $ | 7,092 | $ | 8,199 | (14) | % | Net revenues | $ | 7,657 | $ | 8,577 | (11) | % | ||||||||
Provision for credit losses1 | 70 | 217 | (68) | % | ||||||||||||||||||
Provision for credit losses | Provision for credit losses | 44 | (93) | 147 | % | |||||||||||||||||
Compensation and benefits | Compensation and benefits | 2,433 | 2,952 | (18) | % | Compensation and benefits | 2,604 | 3,114 | (16) | % | ||||||||||||
Non-compensation expenses1 | 2,091 | 2,037 | 3 | % | ||||||||||||||||||
Total non-interest expenses1 | 4,524 | 4,989 | (9) | % | ||||||||||||||||||
Non-compensation expenses | Non-compensation expenses | 2,222 | 2,185 | 2 | % | |||||||||||||||||
Total non-interest expenses | Total non-interest expenses | 4,826 | 5,299 | (9) | % | |||||||||||||||||
Income before provision for income taxes | Income before provision for income taxes | 2,498 | 2,993 | (17) | % | Income before provision for income taxes | 2,787 | 3,371 | (17) | % | ||||||||||||
Provision for income taxes | Provision for income taxes | 574 | 790 | (27) | % | Provision for income taxes | 535 | 736 | (27) | % | ||||||||||||
Net income | Net income | 1,924 | 2,203 | (13) | % | Net income | 2,252 | 2,635 | (15) | % | ||||||||||||
Net income applicable to noncontrolling interests | Net income applicable to noncontrolling interests | 20 | 17 | 18 | % | Net income applicable to noncontrolling interests | 61 | 34 | 79 | % | ||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | $ | 1,904 | $ | 2,186 | (13) | % | Net income applicable to Morgan Stanley | $ | 2,191 | $ | 2,601 | (16) | % |
Six Months Ended June 30, | |||||||||||
$ in millions | 2021 | 2020 | % Change | ||||||||
Revenues | |||||||||||
Advisory | $ | 1,144 | $ | 824 | 39 | % | |||||
Equity | 2,574 | 1,218 | 111 | % | |||||||
Fixed income | 1,271 | 1,153 | 10 | % | |||||||
Total Underwriting | 3,845 | 2,371 | 62 | % | |||||||
Total Investment banking | 4,989 | 3,195 | 56 | % | |||||||
Equity1 | 5,702 | 5,076 | 12 | % | |||||||
Fixed income1 | 4,648 | 5,103 | (9) | % | |||||||
Other1 | 330 | 3 | N/M | ||||||||
Net revenues1 | $ | 15,669 | $ | 13,377 | 17 | % | |||||
Provision for credit losses1 | (23) | 605 | (104) | % | |||||||
Compensation and benefits | 5,547 | 4,766 | 16 | % | |||||||
Non-compensation expenses1 | 4,276 | 4,063 | 5 | % | |||||||
Total non-interest expenses1 | 9,823 | 8,829 | 11 | % | |||||||
Income before provision for income taxes | 5,869 | 3,943 | 49 | % | |||||||
Provision for income taxes | 1,310 | 941 | 39 | % | |||||||
Net income | 4,559 | 3,002 | 52 | % | |||||||
Net income applicable to noncontrolling interests | 54 | 59 | (8) | % | |||||||
Net income applicable to Morgan Stanley | $ | 4,505 | $ | 2,943 | 53 | % |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in billions | $ in billions | 2021 | 2020 | 2021 | 2020 | $ in billions | 2022 | 2021 | ||||||||||||||||||||
Completed mergers and acquisitions1 | Completed mergers and acquisitions1 | $ | 141 | $ | 433 | $ | 370 | $ | 552 | Completed mergers and acquisitions1 | $ | 320 | $ | 228 | ||||||||||||||
Equity and equity-related offerings2, 3 | Equity and equity-related offerings2, 3 | 31 | 36 | 68 | 49 | Equity and equity-related offerings2, 3 | 8 | 37 | ||||||||||||||||||||
Fixed income offerings2, 4 | Fixed income offerings2, 4 | 100 | 121 | 204 | 214 | Fixed income offerings2, 4 | 81 | 105 |
March 2022 Form 10-Q | 3 |
Management’s Discussion and Analysis |
Three Months Ended March 31, | ||||||||||||||
$ in millions | 2022 | 2021 | ||||||||||||
Consolidated results | ||||||||||||||
Net revenues | $ | 14,801 | $ | 15,719 | ||||||||||
Earnings applicable to Morgan Stanley common shareholders | $ | 3,542 | $ | 3,982 | ||||||||||
Earnings per diluted common share | $ | 2.02 | $ | 2.19 | ||||||||||
Consolidated financial measures | ||||||||||||||
Expense efficiency ratio1 | 69 | % | 67 | % | ||||||||||
Adjusted expense efficiency ratio1, 2 | 68 | % | 66 | % | ||||||||||
ROE3 | 14.7 | % | 16.9 | % | ||||||||||
Adjusted ROE2, 3 | 15.0 | % | 17.1 | % | ||||||||||
ROTCE2, 3 | 19.8 | % | 21.1 | % | ||||||||||
Adjusted ROTCE2, 3 | 20.3 | % | 21.4 | % | ||||||||||
Pre-tax margin4 | 31 | % | 34 | % | ||||||||||
Effective tax rate | 19.0 | % | 22.0 | % | ||||||||||
Pre-tax margin by segment4 | ||||||||||||||
Institutional Securities | 36 | % | 39 | % | ||||||||||
Wealth Management | 27 | % | 27 | % | ||||||||||
Wealth Management, adjusted2 | 28 | % | 28 | % | ||||||||||
Investment Management | 17 | % | 28 | % | ||||||||||
Investment Management, adjusted2 | 19 | % | 29 | % |
in millions, except per share and employee data | At March 31, 2022 | At December 31, 2021 | ||||||
Liquidity resources5 | $ | 323,227 | $ | 356,003 | ||||
Loans6 | $ | 208,750 | $ | 200,761 | ||||
Total assets | $ | 1,222,233 | $ | 1,188,140 | ||||
Deposits | $ | 360,840 | $ | 347,574 | ||||
Borrowings | $ | 229,817 | $ | 233,127 | ||||
Common shareholders' equity | $ | 95,151 | $ | 97,691 | ||||
Tangible common shareholders’ equity2 | $ | 70,083 | $ | 72,499 | ||||
Common shares outstanding | 1,756 | 1,772 | ||||||
Book value per common share7 | $ | 54.18 | $ | 55.12 | ||||
Tangible book value per common share2, 7 | $ | 39.91 | $ | 40.91 | ||||
Worldwide employees (in thousands) | 77 | 75 | ||||||
Client assets8 (in billions) | $ | 6,247 | $ | 6,495 | ||||
Capital Ratios9 | ||||||||
Common Equity Tier 1 capital—Standardized | 14.5 | % | 16.0 | % | ||||
Tier 1 capital—Standardized | 16.0 | % | 17.7 | % | ||||
Common Equity Tier 1 capital—Advanced | 15.9 | % | 17.4 | % | ||||
Tier 1 capital—Advanced | 17.6 | % | 19.1 | % | ||||
Tier 1 leverage | 6.8 | % | 7.1 | % | ||||
SLR | 5.5 | % | 5.6 | % |
Management’s Discussion and Analysis |
Three Months Ended June 30, 2021 | |||||||||||||||||
Net Interest2 | All Other3 | ||||||||||||||||
$ in millions | Trading | Fees1 | Total | ||||||||||||||
Financing | $ | 1,138 | $ | 121 | $ | 117 | $ | 3 | $ | 1,379 | |||||||
Execution services | 818 | 636 | (45) | 39 | 1,448 | ||||||||||||
Total Equity | $ | 1,956 | $ | 757 | $ | 72 | $ | 42 | $ | 2,827 | |||||||
Total Fixed Income | $ | 1,148 | $ | 72 | $ | 417 | $ | 45 | $ | 1,682 |
Three Months Ended June 30, 20204 | |||||||||||||||||
Net Interest2 | All Other3 | ||||||||||||||||
$ in millions | Trading | Fees1 | Total | ||||||||||||||
Financing | $ | 884 | $ | 115 | $ | 94 | $ | 1 | $ | 1,094 | |||||||
Execution services | 948 | 651 | (73) | 7 | 1,533 | ||||||||||||
Total Equity | $ | 1,832 | $ | 766 | $ | 21 | $ | 8 | $ | 2,627 | |||||||
Total Fixed Income | $ | 2,468 | $ | 67 | $ | 504 | $ | 2 | $ | 3,041 |
Six Months Ended June 30, 2021 | |||||||||||||||||
Net Interest2 | All Other3 | ||||||||||||||||
$ in millions | Trading | Fees1 | Total | ||||||||||||||
Financing | $ | 1,783 | $ | 251 | $ | 299 | $ | 6 | $ | 2,339 | |||||||
Execution services | 1,932 | 1,436 | (107) | 102 | 3,363 | ||||||||||||
Total Equity | $ | 3,715 | $ | 1,687 | $ | 192 | $ | 108 | $ | 5,702 | |||||||
Total Fixed Income | $ | 3,461 | $ | 153 | $ | 856 | $ | 178 | $ | 4,648 |
Three Months Ended March 31, | ||||||||||||||
$ in millions, except per share data | 2022 | 2021 | ||||||||||||
Earnings applicable to Morgan Stanley common shareholders | $ | 3,542 | $ | 3,982 | ||||||||||
Impact of adjustments: | ||||||||||||||
Wealth Management—Compensation expenses | 1 | 30 | ||||||||||||
Wealth Management—Non-compensation expenses | 74 | 34 | ||||||||||||
Investment Management—Compensation expenses | 9 | 3 | ||||||||||||
Investment Management—Non-compensation expenses | 23 | 8 | ||||||||||||
Integration-related expenses | 107 | 75 | ||||||||||||
Related tax benefit | (25) | (17) | ||||||||||||
Adjusted earnings applicable to Morgan Stanley common shareholders—non-GAAP1 | $ | 3,624 | $ | 4,040 | ||||||||||
Earnings per diluted common share | $ | 2.02 | $ | 2.19 | ||||||||||
Impact of adjustments | 0.04 | 0.03 | ||||||||||||
Adjusted earnings per diluted common share—non-GAAP1 | $ | 2.06 | $ | 2.22 | ||||||||||
Expense efficiency ratio | 69 | % | 67 | % | ||||||||||
Impact of adjustments | (1) | % | (1) | % | ||||||||||
Adjusted expense efficiency ratio—non-GAAP1 | 68 | % | 66 | % | ||||||||||
Wealth Management Pre-tax margin | 27 | % | 27 | % | ||||||||||
Impact of adjustments | 1 | % | 1 | % | ||||||||||
Adjusted Wealth Management pre-tax margin—non-GAAP1 | 28 | % | 28 | % | ||||||||||
Investment Management Pre-tax margin | 17 | % | 28 | % | ||||||||||
Impact of adjustments | 2 | % | 1 | % | ||||||||||
Adjusted Investment Management pre-tax margin—non-GAAP1 | 19 | % | 29 | % |
Six Months Ended June 30, 20204 | |||||||||||||||||
Net Interest2 | All Other3 | ||||||||||||||||
$ in millions | Trading | Fees1 | Total | ||||||||||||||
Financing | $ | 1,919 | $ | 217 | $ | 57 | $ | 4 | $ | 2,197 | |||||||
Execution services | 1,527 | 1,434 | (113) | 31 | 2,879 | ||||||||||||
Total Equity | $ | 3,446 | $ | 1,651 | $ | (56) | $ | 35 | $ | 5,076 | |||||||
Total Fixed Income | $ | 4,241 | $ | 169 | $ | 832 | $ | (139) | $ | 5,103 |
$ in millions | At March 31, 2022 | At December 31, 2021 | ||||||
Tangible equity | ||||||||
Common shareholders' equity | $ | 95,151 | $ | 97,691 | ||||
Less: Goodwill and net intangible assets | (25,068) | (25,192) | ||||||
Tangible common shareholders' equity—non-GAAP | $ | 70,083 | $ | 72,499 |
Average Monthly Balance | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
$ in millions | 2022 | 2021 | ||||||||||||
Tangible equity | ||||||||||||||
Common shareholders' equity | $ | 96,667 | $ | 94,343 | ||||||||||
Less: Goodwill and net intangible assets | (25,120) | (18,849) | ||||||||||||
Tangible common shareholders' equity—non-GAAP | $ | 71,547 | $ | 75,494 |
Three Months Ended March 31, | ||||||||||||||
$ in billions | 2022 | 2021 | ||||||||||||
Average common equity | ||||||||||||||
Unadjusted—GAAP | $ | 96.7 | $ | 94.3 | ||||||||||
Adjusted1—Non-GAAP | 96.7 | 94.4 | ||||||||||||
ROE2 | ||||||||||||||
Unadjusted—GAAP | 14.7 | % | 16.9 | % | ||||||||||
Adjusted1—Non-GAAP | 15.0 | % | 17.1 | % | ||||||||||
Average tangible common equity—Non-GAAP | ||||||||||||||
Unadjusted | $ | 71.5 | $ | 75.5 | ||||||||||
Adjusted1 | 71.6 | 75.5 | ||||||||||||
ROTCE2—Non-GAAP | ||||||||||||||
Unadjusted | 19.8 | % | 21.1 | % | ||||||||||
Adjusted1 | 20.3 | % | 21.4 | % |
Three Months Ended March 31, | ||||||||||||||
$ in billions | 2022 | 2021 | ||||||||||||
Average common equity3 | ||||||||||||||
Institutional Securities | $ | 48.8 | $ | 43.5 | ||||||||||
Wealth Management | 31.0 | 28.5 | ||||||||||||
Investment Management | 10.6 | 4.4 | ||||||||||||
ROE4 | ||||||||||||||
Institutional Securities | 17 | % | 23 | % | ||||||||||
Wealth Management | 16 | % | 17 | % | ||||||||||
Investment Management | 8 | % | 25 | % | ||||||||||
Average tangible common equity3 | ||||||||||||||
Institutional Securities | $ | 48.3 | $ | 42.9 | ||||||||||
Wealth Management | 16.3 | 13.4 | ||||||||||||
Investment Management | 0.8 | 1.2 | ||||||||||||
ROTCE4 | ||||||||||||||
Institutional Securities | 17 | % | 23 | % | ||||||||||
Wealth Management | 30 | % | 36 | % | ||||||||||
Investment Management | 106 | % | 88 | % |
Management’s Discussion and Analysis |
6 | March 2022 Form 10-Q |
Management’s Discussion and Analysis |
Three Months Ended March 31, | |||||||||||
$ in millions | 2022 | 2021 | % Change | ||||||||
Revenues | |||||||||||
Advisory | $ | 944 | $ | 480 | 97 | % | |||||
Equity | 258 | 1,502 | (83) | % | |||||||
Fixed income | 432 | 631 | (32) | % | |||||||
Total Underwriting | 690 | 2,133 | (68) | % | |||||||
Total Investment banking | 1,634 | 2,613 | (37) | % | |||||||
Equity | 3,174 | 2,875 | 10 | % | |||||||
Fixed income | 2,923 | 2,966 | (1) | % | |||||||
Other | (74) | 123 | (160) | % | |||||||
Net revenues | $ | 7,657 | $ | 8,577 | (11) | % | |||||
Provision for credit losses | 44 | (93) | 147 | % | |||||||
Compensation and benefits | 2,604 | 3,114 | (16) | % | |||||||
Non-compensation expenses | 2,222 | 2,185 | 2 | % | |||||||
Total non-interest expenses | 4,826 | 5,299 | (9) | % | |||||||
Income before provision for income taxes | 2,787 | 3,371 | (17) | % | |||||||
Provision for income taxes | 535 | 736 | (27) | % | |||||||
Net income | 2,252 | 2,635 | (15) | % | |||||||
Net income applicable to noncontrolling interests | 61 | 34 | 79 | % | |||||||
Net income applicable to Morgan Stanley | $ | 2,191 | $ | 2,601 | (16) | % |
Three Months Ended March 31, | ||||||||||||||
$ in billions | 2022 | 2021 | ||||||||||||
Completed mergers and acquisitions1 | $ | 320 | $ | 228 | ||||||||||
Equity and equity-related offerings2, 3 | 8 | 37 | ||||||||||||
Fixed income offerings2, 4 | 81 | 105 |
March 2022 Form 10-Q | 3 |
Management’s Discussion and Analysis |
Three Months Ended March 31, | ||||||||||||||
$ in millions | 2022 | 2021 | ||||||||||||
Consolidated results | ||||||||||||||
Net revenues | $ | 14,801 | $ | 15,719 | ||||||||||
Earnings applicable to Morgan Stanley common shareholders | $ | 3,542 | $ | 3,982 | ||||||||||
Earnings per diluted common share | $ | 2.02 | $ | 2.19 | ||||||||||
Consolidated financial measures | ||||||||||||||
Expense efficiency ratio1 | 69 | % | 67 | % | ||||||||||
Adjusted expense efficiency ratio1, 2 | 68 | % | 66 | % | ||||||||||
ROE3 | 14.7 | % | 16.9 | % | ||||||||||
Adjusted ROE2, 3 | 15.0 | % | 17.1 | % | ||||||||||
ROTCE2, 3 | 19.8 | % | 21.1 | % | ||||||||||
Adjusted ROTCE2, 3 | 20.3 | % | 21.4 | % | ||||||||||
Pre-tax margin4 | 31 | % | 34 | % | ||||||||||
Effective tax rate | 19.0 | % | 22.0 | % | ||||||||||
Pre-tax margin by segment4 | ||||||||||||||
Institutional Securities | 36 | % | 39 | % | ||||||||||
Wealth Management | 27 | % | 27 | % | ||||||||||
Wealth Management, adjusted2 | 28 | % | 28 | % | ||||||||||
Investment Management | 17 | % | 28 | % | ||||||||||
Investment Management, adjusted2 | 19 | % | 29 | % |
in millions, except per share and employee data | At March 31, 2022 | At December 31, 2021 | ||||||
Liquidity resources5 | $ | 323,227 | $ | 356,003 | ||||
Loans6 | $ | 208,750 | $ | 200,761 | ||||
Total assets | $ | 1,222,233 | $ | 1,188,140 | ||||
Deposits | $ | 360,840 | $ | 347,574 | ||||
Borrowings | $ | 229,817 | $ | 233,127 | ||||
Common shareholders' equity | $ | 95,151 | $ | 97,691 | ||||
Tangible common shareholders’ equity2 | $ | 70,083 | $ | 72,499 | ||||
Common shares outstanding | 1,756 | 1,772 | ||||||
Book value per common share7 | $ | 54.18 | $ | 55.12 | ||||
Tangible book value per common share2, 7 | $ | 39.91 | $ | 40.91 | ||||
Worldwide employees (in thousands) | 77 | 75 | ||||||
Client assets8 (in billions) | $ | 6,247 | $ | 6,495 | ||||
Capital Ratios9 | ||||||||
Common Equity Tier 1 capital—Standardized | 14.5 | % | 16.0 | % | ||||
Tier 1 capital—Standardized | 16.0 | % | 17.7 | % | ||||
Common Equity Tier 1 capital—Advanced | 15.9 | % | 17.4 | % | ||||
Tier 1 capital—Advanced | 17.6 | % | 19.1 | % | ||||
Tier 1 leverage | 6.8 | % | 7.1 | % | ||||
SLR | 5.5 | % | 5.6 | % |
4 | March 2022 Form 10-Q |
Management’s Discussion and Analysis |
Three Months Ended March 31, | ||||||||||||||
$ in millions, except per share data | 2022 | 2021 | ||||||||||||
Earnings applicable to Morgan Stanley common shareholders | $ | 3,542 | $ | 3,982 | ||||||||||
Impact of adjustments: | ||||||||||||||
Wealth Management—Compensation expenses | 1 | 30 | ||||||||||||
Wealth Management—Non-compensation expenses | 74 | 34 | ||||||||||||
Investment Management—Compensation expenses | 9 | 3 | ||||||||||||
Investment Management—Non-compensation expenses | 23 | 8 | ||||||||||||
Integration-related expenses | 107 | 75 | ||||||||||||
Related tax benefit | (25) | (17) | ||||||||||||
Adjusted earnings applicable to Morgan Stanley common shareholders—non-GAAP1 | $ | 3,624 | $ | 4,040 | ||||||||||
Earnings per diluted common share | $ | 2.02 | $ | 2.19 | ||||||||||
Impact of adjustments | 0.04 | 0.03 | ||||||||||||
Adjusted earnings per diluted common share—non-GAAP1 | $ | 2.06 | $ | 2.22 | ||||||||||
Expense efficiency ratio | 69 | % | 67 | % | ||||||||||
Impact of adjustments | (1) | % | (1) | % | ||||||||||
Adjusted expense efficiency ratio—non-GAAP1 | 68 | % | 66 | % | ||||||||||
Wealth Management Pre-tax margin | 27 | % | 27 | % | ||||||||||
Impact of adjustments | 1 | % | 1 | % | ||||||||||
Adjusted Wealth Management pre-tax margin—non-GAAP1 | 28 | % | 28 | % | ||||||||||
Investment Management Pre-tax margin | 17 | % | 28 | % | ||||||||||
Impact of adjustments | 2 | % | 1 | % | ||||||||||
Adjusted Investment Management pre-tax margin—non-GAAP1 | 19 | % | 29 | % |
$ in millions | At March 31, 2022 | At December 31, 2021 | ||||||
Tangible equity | ||||||||
Common shareholders' equity | $ | 95,151 | $ | 97,691 | ||||
Less: Goodwill and net intangible assets | (25,068) | (25,192) | ||||||
Tangible common shareholders' equity—non-GAAP | $ | 70,083 | $ | 72,499 |
Average Monthly Balance | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
$ in millions | 2022 | 2021 | ||||||||||||
Tangible equity | ||||||||||||||
Common shareholders' equity | $ | 96,667 | $ | 94,343 | ||||||||||
Less: Goodwill and net intangible assets | (25,120) | (18,849) | ||||||||||||
Tangible common shareholders' equity—non-GAAP | $ | 71,547 | $ | 75,494 |
Three Months Ended March 31, | ||||||||||||||
$ in billions | 2022 | 2021 | ||||||||||||
Average common equity | ||||||||||||||
Unadjusted—GAAP | $ | 96.7 | $ | 94.3 | ||||||||||
Adjusted1—Non-GAAP | 96.7 | 94.4 | ||||||||||||
ROE2 | ||||||||||||||
Unadjusted—GAAP | 14.7 | % | 16.9 | % | ||||||||||
Adjusted1—Non-GAAP | 15.0 | % | 17.1 | % | ||||||||||
Average tangible common equity—Non-GAAP | ||||||||||||||
Unadjusted | $ | 71.5 | $ | 75.5 | ||||||||||
Adjusted1 | 71.6 | 75.5 | ||||||||||||
ROTCE2—Non-GAAP | ||||||||||||||
Unadjusted | 19.8 | % | 21.1 | % | ||||||||||
Adjusted1 | 20.3 | % | 21.4 | % |
Three Months Ended March 31, | ||||||||||||||
$ in billions | 2022 | 2021 | ||||||||||||
Average common equity3 | ||||||||||||||
Institutional Securities | $ | 48.8 | $ | 43.5 | ||||||||||
Wealth Management | 31.0 | 28.5 | ||||||||||||
Investment Management | 10.6 | 4.4 | ||||||||||||
ROE4 | ||||||||||||||
Institutional Securities | 17 | % | 23 | % | ||||||||||
Wealth Management | 16 | % | 17 | % | ||||||||||
Investment Management | 8 | % | 25 | % | ||||||||||
Average tangible common equity3 | ||||||||||||||
Institutional Securities | $ | 48.3 | $ | 42.9 | ||||||||||
Wealth Management | 16.3 | 13.4 | ||||||||||||
Investment Management | 0.8 | 1.2 | ||||||||||||
ROTCE4 | ||||||||||||||
Institutional Securities | 17 | % | 23 | % | ||||||||||
Wealth Management | 30 | % | 36 | % | ||||||||||
Investment Management | 106 | % | 88 | % |
March 2022 Form 10-Q | 5 |
Management’s Discussion and Analysis |
6 | March 2022 Form 10-Q |
Management’s Discussion and Analysis |
Three Months Ended March 31, | |||||||||||
$ in millions | 2022 | 2021 | % Change | ||||||||
Revenues | |||||||||||
Advisory | $ | 944 | $ | 480 | 97 | % | |||||
Equity | 258 | 1,502 | (83) | % | |||||||
Fixed income | 432 | 631 | (32) | % | |||||||
Total Underwriting | 690 | 2,133 | (68) | % | |||||||
Total Investment banking | 1,634 | 2,613 | (37) | % | |||||||
Equity | 3,174 | 2,875 | 10 | % | |||||||
Fixed income | 2,923 | 2,966 | (1) | % | |||||||
Other | (74) | 123 | (160) | % | |||||||
Net revenues | $ | 7,657 | $ | 8,577 | (11) | % | |||||
Provision for credit losses | 44 | (93) | 147 | % | |||||||
Compensation and benefits | 2,604 | 3,114 | (16) | % | |||||||
Non-compensation expenses | 2,222 | 2,185 | 2 | % | |||||||
Total non-interest expenses | 4,826 | 5,299 | (9) | % | |||||||
Income before provision for income taxes | 2,787 | 3,371 | (17) | % | |||||||
Provision for income taxes | 535 | 736 | (27) | % | |||||||
Net income | 2,252 | 2,635 | (15) | % | |||||||
Net income applicable to noncontrolling interests | 61 | 34 | 79 | % | |||||||
Net income applicable to Morgan Stanley | $ | 2,191 | $ | 2,601 | (16) | % |
Three Months Ended March 31, | ||||||||||||||
$ in billions | 2022 | 2021 | ||||||||||||
Completed mergers and acquisitions1 | $ | 320 | $ | 228 | ||||||||||
Equity and equity-related offerings2, 3 | 8 | 37 | ||||||||||||
Fixed income offerings2, 4 | 81 | 105 |
Three Months Ended March 31, 2022 | |||||||||||||||||
Net Interest2 | All Other3 | ||||||||||||||||
$ in millions | Trading | Fees1 | Total | ||||||||||||||
Financing | $ | 1,251 | $ | 132 | $ | 87 | $ | 4 | $ | 1,474 | |||||||
Execution services | 924 | 693 | (34) | 117 | 1,700 | ||||||||||||
Total Equity | $ | 2,175 | $ | 825 | $ | 53 | $ | 121 | $ | 3,174 | |||||||
Total Fixed Income | $ | 2,258 | $ | 97 | $ | 508 | $ | 60 | $ | 2,923 |
Three Months Ended March 31, 2021 | |||||||||||||||||
Net Interest2 | All Other3 | ||||||||||||||||
$ in millions | Trading | Fees1 | Total | ||||||||||||||
Financing | $ | 645 | $ | 130 | $ | 182 | $ | 3 | $ | 960 | |||||||
Execution services | 1,114 | 800 | (62) | 63 | 1,915 | ||||||||||||
Total Equity | $ | 1,759 | $ | 930 | $ | 120 | $ | 66 | $ | 2,875 | |||||||
Total Fixed Income | $ | 2,313 | $ | 81 | $ | 439 | $ | 133 | $ | 2,966 |
March 2022 Form 10-Q | 7 |
Management’s Discussion and Analysis |
Management’s Discussion and Analysis |
Three Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | % Change | $ in millions | 2022 | 2021 | % Change | ||||||||||||||
Revenues | Revenues | Revenues | ||||||||||||||||||||
Asset management | Asset management | $ | 3,447 | $ | 2,507 | 37 | % | Asset management | $ | 3,626 | $ | 3,191 | 14 | % | ||||||||
Transactional1 | Transactional1 | 1,172 | 1,075 | 9 | % | Transactional1 | 635 | 1,228 | (48) | % | ||||||||||||
Net interest | Net interest | 1,255 | 1,030 | 22 | % | Net interest | 1,540 | 1,385 | 11 | % | ||||||||||||
Other1,2 | 221 | 92 | 140 | % | ||||||||||||||||||
Other1 | Other1 | 134 | 155 | (14) | % | |||||||||||||||||
Net revenues | Net revenues | 6,095 | 4,704 | 30 | % | Net revenues | 5,935 | 5,959 | — | % | ||||||||||||
Provision for credit losses2 | 3 | 22 | (86) | % | ||||||||||||||||||
Provision for credit losses | Provision for credit losses | 13 | (5) | N/M | ||||||||||||||||||
Compensation and benefits | Compensation and benefits | 3,275 | 2,729 | 20 | % | Compensation and benefits | 3,125 | 3,170 | (1) | % | ||||||||||||
Non-compensation expenses | Non-compensation expenses | 1,181 | 811 | 46 | % | Non-compensation expenses | 1,224 | 1,194 | 3 | % | ||||||||||||
Total non-interest expenses | Total non-interest expenses | 4,456 | 3,540 | 26 | % | Total non-interest expenses | 4,349 | 4,364 | — | % | ||||||||||||
Income before provision for income taxes | Income before provision for income taxes | $ | 1,636 | $ | 1,142 | 43 | % | Income before provision for income taxes | $ | 1,573 | $ | 1,600 | (2) | % | ||||||||
Provision for income taxes | Provision for income taxes | 372 | 289 | 29 | % | Provision for income taxes | 301 | 358 | (16) | % | ||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | $ | 1,264 | $ | 853 | 48 | % | Net income applicable to Morgan Stanley | $ | 1,272 | $ | 1,242 | 2 | % |
Six Months Ended June 30, | |||||||||||
$ in millions | 2021 | 2020 | % Change | ||||||||
Revenues | |||||||||||
Asset management | $ | 6,638 | $ | 5,187 | 28 | % | |||||
Transactional1 | 2,400 | 1,474 | 63 | % | |||||||
Net interest | 2,640 | 1,926 | 37 | % | |||||||
Other1,2 | 376 | 173 | 117 | % | |||||||
Net revenues | 12,054 | 8,760 | 38 | % | |||||||
Provision for credit losses2 | (2) | 41 | (105) | % | |||||||
Compensation and benefits | 6,445 | 4,941 | 30 | % | |||||||
Non-compensation expenses | 2,375 | 1,581 | 50 | % | |||||||
Total non-interest expenses | 8,820 | 6,522 | 35 | % | |||||||
Income before provision for income taxes | $ | 3,236 | $ | 2,197 | 47 | % | |||||
Provision for income taxes | 730 | 480 | 52 | % | |||||||
Net income applicable to Morgan Stanley | $ | 2,506 | $ | 1,717 | 46 | % |
$ in billions | $ in billions | At June 30, 2021 | At December 31, 2020 | $ in billions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Total client assets | Total client assets | $ | 4,546 | $ | 3,999 | Total client assets | $ | 4,800 | $ | 4,930 | ||||||
U.S. Bank Subsidiary loans | U.S. Bank Subsidiary loans | $ | 115 | $ | 98 | U.S. Bank Subsidiary loans | $ | 137 | $ | 129 | ||||||
Margin and other lending1 | Margin and other lending1 | $ | 27 | $ | 23 | Margin and other lending1 | $ | 29 | $ | 31 | ||||||
Deposits2 | Deposits2 | $ | 319 | $ | 306 | Deposits2 | $ | 352 | $ | 346 | ||||||
Weighted average cost of deposits3 | 0.16% | 0.24% | ||||||||||||||
Annualized weighted average cost of deposits | Annualized weighted average cost of deposits | 0.09% | 0.10% |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||
Net new assets4 | $ | 71.2 | $ | 20.4 | $ | 176.1 | $ | 57.5 | ||||||
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net new assets3 | $ | 142.0 | $ | 104.9 |
$ in billions | $ in billions | At June 30, 2021 | At December 31, 2020 | $ in billions | At March 31, 2022 | At December 31, 2021 | ||||||||||||||||
Advisor-led client assets1 | Advisor-led client assets1 | $ | 3,553 | $ | 3,167 | Advisor-led client assets1 | $ | 3,835 | $ | 3,886 | ||||||||||||
Fee-based client assets2 | Fee-based client assets2 | $ | 1,680 | $ | 1,472 | Fee-based client assets2 | $ | 1,873 | $ | 1,839 | ||||||||||||
Fee-based client assets as a percentage of advisor-led client assets | Fee-based client assets as a percentage of advisor-led client assets | 47% | 46% | Fee-based client assets as a percentage of advisor-led client assets | 49% | 47% |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||
Fee-based asset flows3 | Fee-based asset flows3 | $ | 33.7 | $ | 11.1 | $ | 70.9 | $ | 29.5 | Fee-based asset flows3 | $ | 97.2 | $ | 37.2 |
$ in billions | $ in billions | At June 30, 2021 | At December 31, 2020 | $ in billions | At March 31, 2022 | At December 31, 2021 | ||||||||||||||||
Self-directed assets1 | Self-directed assets1 | $ | 993 | $ | 832 | Self-directed assets1 | $ | 965 | $ | 1,044 | ||||||||||||
Self-directed households (in millions)2 | Self-directed households (in millions)2 | 7.4 | 6.7 | Self-directed households (in millions)2 | 7.6 | 7.4 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||
Daily average revenue trades (“DARTs”) (in thousands)3 | 1,042 | 6 | 1,324 | 6 | ||||||||||
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Daily average revenue trades (“DARTs”) (in thousands)3 | 1,016 | 1,619 |
$ in billions | At June 30, 2021 | At December 31, 2020 | |||||||||
Workplace unvested assets2 | $ | 480 | $ | 435 | |||||||
Number of participants (in millions)3 | 5.2 | 4.9 |
$ in billions | At March 31, 2022 | At December 31, 2021 | |||||||||
Stock plan unvested assets2 | $ | 454 | $ | 509 | |||||||
Stock plan participants (in millions)3 | 5.8 | 5.6 |
9 |
Management’s Discussion and Analysis |
$ in billions | At March 31, 2021 | Inflows | Outflows | Market Impact | At June 30, 2021 | ||||||||||||
Separately managed1 | $ | 385 | $ | 13 | $ | (4) | $ | 13 | $ | 407 | |||||||
Unified managed | 405 | 25 | (14) | 20 | 436 | ||||||||||||
Advisor | 188 | 10 | (8) | 11 | 201 | ||||||||||||
Portfolio manager | 549 | 29 | (17) | 29 | 590 | ||||||||||||
Subtotal | $ | 1,527 | $ | 77 | $ | (43) | $ | 73 | $ | 1,634 | |||||||
Cash management | 47 | 8 | (9) | — | 46 | ||||||||||||
Total fee-based client assets | $ | 1,574 | $ | 85 | $ | (52) | $ | 73 | $ | 1,680 |
$ in billions | At March 31, 2020 | Inflows | Outflows | Market Impact | At June 30, 2020 | ||||||||||||
Separately managed1 | $ | 329 | $ | 7 | $ | (4) | $ | (19) | $ | 313 | |||||||
Unified managed | 263 | 13 | (10) | 39 | 305 | ||||||||||||
Advisor | 131 | 8 | (8) | 18 | 149 | ||||||||||||
Portfolio manager | 379 | 20 | (15) | 47 | 431 | ||||||||||||
Subtotal | $ | 1,102 | $ | 48 | $ | (37) | $ | 85 | $ | 1,198 | |||||||
Cash management | 32 | 10 | (4) | — | 38 | ||||||||||||
Total fee-based client assets | $ | 1,134 | $ | 58 | $ | (41) | $ | 85 | $ | 1,236 |
$ in billions | $ in billions | At December 31, 2020 | Inflows | Outflows | Market Impact | At June 30, 2021 | $ in billions | At December 31, 2021 | Inflows1 | Outflows | Market Impact | At March 31, 2022 | |||||||||||||||||||||||||
Separately managed1 | $ | 359 | $ | 26 | $ | (11) | $ | 33 | $ | 407 | |||||||||||||||||||||||||||
Separately managed2 | Separately managed2 | $ | 479 | $ | 87 | $ | (8) | $ | 7 | $ | 565 | ||||||||||||||||||||||||||
Unified managed | Unified managed | 379 | 51 | (27) | 33 | 436 | Unified managed | 467 | 25 | (14) | (31) | 447 | |||||||||||||||||||||||||
Advisor | Advisor | 177 | 22 | (17) | 19 | 201 | Advisor | 211 | 9 | (11) | (10) | 199 | |||||||||||||||||||||||||
Portfolio manager | Portfolio manager | 509 | 59 | (32) | 54 | 590 | Portfolio manager | 636 | 30 | (21) | (30) | 615 | |||||||||||||||||||||||||
Subtotal | Subtotal | $ | 1,424 | $ | 158 | $ | (87) | $ | 139 | $ | 1,634 | Subtotal | $ | 1,793 | $ | 151 | $ | (54) | $ | (64) | $ | 1,826 | |||||||||||||||
Cash management | Cash management | 48 | 15 | (17) | — | 46 | Cash management | 46 | 9 | (8) | — | 47 | |||||||||||||||||||||||||
Total fee-based client assets | Total fee-based client assets | $ | 1,472 | $ | 173 | $ | (104) | $ | 139 | $ | 1,680 | Total fee-based client assets | $ | 1,839 | $ | 160 | $ | (62) | $ | (64) | $ | 1,873 |
$ in billions | $ in billions | At December 31, 2019 | Inflows | Outflows | Market Impact | At June 30, 2020 | $ in billions | At December 31, 2020 | Inflows | Outflows | Market Impact | At March 31, 2021 | ||||||||||||||||||||||
Separately managed1 | $ | 322 | $ | 19 | $ | (10) | $ | (18) | $ | 313 | ||||||||||||||||||||||||
Separately managed2 | Separately managed2 | $ | 359 | $ | 13 | $ | (7) | $ | 20 | $ | 385 | |||||||||||||||||||||||
Unified managed | Unified managed | 313 | 29 | (22) | (15) | 305 | Unified managed | 379 | 27 | (14) | 13 | 405 | ||||||||||||||||||||||
Advisor | Advisor | 155 | 16 | (15) | (7) | 149 | Advisor | 177 | 12 | (9) | 8 | 188 | ||||||||||||||||||||||
Portfolio manager | Portfolio manager | 435 | 44 | (31) | (17) | 431 | Portfolio manager | 509 | 33 | (18) | 25 | 549 | ||||||||||||||||||||||
Subtotal | Subtotal | $ | 1,225 | $ | 108 | $ | (78) | $ | (57) | $ | 1,198 | Subtotal | $ | 1,424 | $ | 85 | $ | (48) | $ | 66 | $ | 1,527 | ||||||||||||
Cash management | Cash management | 42 | 9 | (13) | — | 38 | Cash management | 48 | 8 | (9) | — | 47 | ||||||||||||||||||||||
Total fee-based client assets | Total fee-based client assets | $ | 1,267 | $ | 117 | $ | (91) | $ | (57) | $ | 1,236 | Total fee-based client assets | $ | 1,472 | $ | 93 | $ | (57) | $ | 66 | $ | 1,574 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
Fee rate in bps | Fee rate in bps | 2021 | 2020 | 2021 | 2020 | Fee rate in bps | 2022 | 2021 | ||||||||||||||||||||
Separately managed | Separately managed | 14 | 14 | 14 | 14 | Separately managed | 13 | 14 | ||||||||||||||||||||
Unified managed | Unified managed | 95 | 99 | 96 | 99 | Unified managed | 94 | 97 | ||||||||||||||||||||
Advisor | Advisor | 82 | 86 | 82 | 85 | Advisor | 81 | 81 | ||||||||||||||||||||
Portfolio manager | Portfolio manager | 93 | 94 | 93 | 94 | Portfolio manager | 92 | 93 | ||||||||||||||||||||
Subtotal | Subtotal | 72 | 72 | 73 | 72 | Subtotal | 68 | 73 | ||||||||||||||||||||
Cash management | Cash management | 5 | 6 | 5 | 5 | Cash management | 6 | 5 | ||||||||||||||||||||
Total fee-based client assets | Total fee-based client assets | 71 | 70 | 71 | 70 | Total fee-based client assets | 67 | 71 |
10 |
Management’s Discussion and Analysis |
Three Months Ended June 30, | |||||||||||
$ in millions | 2021 | 2020 | % Change | ||||||||
Revenues | |||||||||||
Asset management and related fees | $ | 1,418 | $ | 684 | 107 | % | |||||
Performance-based income and other1 | 284 | 202 | 41 | % | |||||||
Net revenues | 1,702 | 886 | 92 | % | |||||||
Compensation and benefits | 715 | 354 | 102 | % | |||||||
Non-compensation expenses | 557 | 316 | 76 | % | |||||||
Total non-interest expenses | 1,272 | 670 | 90 | % | |||||||
Income before provision for income taxes | 430 | 216 | 99 | % | |||||||
Provision for income taxes | 108 | 39 | 177 | % | |||||||
Net income | 322 | 177 | 82 | % | |||||||
Net income (loss) applicable to noncontrolling interests | (19) | 23 | (183) | % | |||||||
Net income applicable to Morgan Stanley | $ | 341 | $ | 154 | 121 | % |
Six Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | % Change | $ in millions | 2022 | 2021 | % Change | ||||||||||||||
Revenues | Revenues | Revenues | ||||||||||||||||||||
Asset management and related fees | Asset management and related fees | $ | 2,521 | $ | 1,349 | 87 | % | Asset management and related fees | $ | 1,388 | $ | 1,103 | 26 | % | ||||||||
Performance-based income and other1 | Performance-based income and other1 | 495 | 229 | 116 | % | Performance-based income and other1 | (53) | 211 | (125) | % | ||||||||||||
Net revenues | Net revenues | 3,016 | 1,578 | 91 | % | Net revenues | 1,335 | 1,314 | 2 | % | ||||||||||||
Compensation and benefits | Compensation and benefits | 1,229 | 611 | 101 | % | Compensation and benefits | 545 | 514 | 6 | % | ||||||||||||
Non-compensation expenses | Non-compensation expenses | 987 | 608 | 62 | % | Non-compensation expenses | 562 | 430 | 31 | % | ||||||||||||
Total non-interest expenses | Total non-interest expenses | 2,216 | 1,219 | 82 | % | Total non-interest expenses | 1,107 | 944 | 17 | % | ||||||||||||
Income before provision for income taxes | Income before provision for income taxes | 800 | 359 | 123 | % | Income before provision for income taxes | 228 | 370 | (38) | % | ||||||||||||
Provision for income taxes | Provision for income taxes | 189 | 64 | 195 | % | Provision for income taxes | 37 | 81 | (54) | % | ||||||||||||
Net income | Net income | 611 | 295 | 107 | % | Net income | 191 | 289 | (34) | % | ||||||||||||
Net income (loss) applicable to noncontrolling interests | Net income (loss) applicable to noncontrolling interests | (5) | 63 | (108) | % | Net income (loss) applicable to noncontrolling interests | (12) | 14 | (186) | % | ||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | $ | 616 | $ | 232 | 166 | % | Net income applicable to Morgan Stanley | $ | 203 | $ | 275 | (26) | % |
$ in billions | Equity | Fixed Income | Alternatives and Solutions | Long-Term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||
December 31, 2021 | $ | 395 | $ | 207 | $ | 466 | $ | 1,068 | $ | 497 | $ | 1,565 | ||||||||
Inflows | 19 | 19 | 27 | 65 | 494 | 559 | ||||||||||||||
Outflows | (26) | (22) | (29) | (77) | (523) | (600) | ||||||||||||||
Market Impact | (48) | (7) | (14) | (69) | (2) | (71) | ||||||||||||||
Other | (3) | (2) | (1) | (6) | — | (6) | ||||||||||||||
March 31, 2022 | $ | 337 | $ | 195 | $ | 449 | $ | 981 | $ | 466 | $ | 1,447 |
$ in billions | Equity | Fixed Income | Alternatives and Solutions | Long-Term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||
December 31, 2020 | $ | 242 | $ | 98 | $ | 153 | $ | 493 | $ | 288 | $ | 781 | ||||||||
Inflows | 31 | 13 | 15 | 59 | 459 | 518 | ||||||||||||||
Outflows | (23) | (9) | (10) | (42) | (433) | (475) | ||||||||||||||
Market Impact | 4 | (2) | 10 | 12 | — | 12 | ||||||||||||||
Acquired1 | 119 | 103 | 251 | 473 | 116 | 589 | ||||||||||||||
Other | (2) | (2) | (1) | (5) | (1) | (6) | ||||||||||||||
March 31, 2021 | $ | 371 | $ | 201 | $ | 418 | $ | 990 | $ | 429 | $ | 1,419 |
11 |
Management’s Discussion and Analysis |
$ in billions | Equity | Fixed income | Alternatives and Solutions | Long-term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||
March 31, 2021 | $ | 371 | $ | 201 | $ | 418 | $ | 990 | $ | 429 | $ | 1,419 | ||||||||
Inflows | 24 | 19 | 29 | 72 | 454 | 526 | ||||||||||||||
Outflows | (21) | (15) | (20) | (56) | (419) | (475) | ||||||||||||||
Market Impact | 31 | 3 | 19 | 53 | 4 | 57 | ||||||||||||||
Other | (1) | (1) | (1) | (3) | — | (3) | ||||||||||||||
June 30, 2021 | $ | 404 | $ | 207 | $ | 445 | $ | 1,056 | $ | 468 | $ | 1,524 |
$ in billions | Equity | Fixed income | Alternatives and Solutions | Long-term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||
March 31, 2020 | $ | 121 | $ | 75 | $ | 141 | $ | 337 | $ | 247 | $ | 584 | ||||||||
Inflows | 18 | 11 | 7 | 36 | 409 | 445 | ||||||||||||||
Outflows | (9) | (6) | (4) | (19) | (388) | (407) | ||||||||||||||
Market Impact | 37 | 4 | 2 | 43 | — | 43 | ||||||||||||||
Other | 1 | — | (1) | — | — | — | ||||||||||||||
June 30, 2020 | $ | 168 | $ | 84 | $ | 145 | $ | 397 | $ | 268 | $ | 665 |
$ in billions | Equity | Fixed income | Alternatives and Solutions | Long-term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||
December 31, 2020 | $ | 242 | $ | 98 | $ | 153 | $ | 493 | $ | 288 | $ | 781 | ||||||||
Inflows | 55 | 32 | 44 | 131 | 913 | 1,044 | ||||||||||||||
Outflows | (44) | (24) | (30) | (98) | (852) | (950) | ||||||||||||||
Market Impact | 35 | 1 | 29 | 65 | 4 | 69 | ||||||||||||||
Acquired1 | 119 | 103 | 251 | 473 | 116 | 589 | ||||||||||||||
Other | (3) | (3) | (2) | (8) | (1) | (9) | ||||||||||||||
June 30, 2021 | $ | 404 | $ | 207 | $ | 445 | $ | 1,056 | $ | 468 | $ | 1,524 |
$ in billions | Equity | Fixed income | Alternatives and Solutions | Long-term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||
December 31, 2019 | $ | 138 | $ | 79 | $ | 139 | $ | 356 | $ | 196 | $ | 552 | ||||||||
Inflows | 32 | 21 | 15 | 68 | 855 | 923 | ||||||||||||||
Outflows | (21) | (15) | (8) | (44) | (783) | (827) | ||||||||||||||
Market Impact | 19 | — | (5) | 14 | 1 | 15 | ||||||||||||||
Other | — | (1) | 4 | 3 | (1) | 2 | ||||||||||||||
June 30, 2020 | $ | 168 | $ | 84 | $ | 145 | $ | 397 | $ | 268 | $ | 665 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in billions | $ in billions | 2021 | 2020 | 2021 | 2020 | $ in billions | 2022 | 2021 | ||||||||||||||||||||
Equity | Equity | $ | 389 | $ | 146 | $ | 329 | $ | 142 | Equity | $ | 355 | $ | 288 | ||||||||||||||
Fixed income | Fixed income | 205 | 80 | 159 | 80 | Fixed income | 201 | 131 | ||||||||||||||||||||
Alternatives and Solutions | Alternatives and Solutions | 434 | 143 | 314 | 141 | Alternatives and Solutions | 454 | 242 | ||||||||||||||||||||
Long-term AUM subtotal | Long-term AUM subtotal | 1028 | 369 | 802 | 363 | Long-term AUM subtotal | 1,010 | 661 | ||||||||||||||||||||
Liquidity and Overlay Services | Liquidity and Overlay Services | 449 | 266 | 384 | 235 | Liquidity and Overlay Services | 476 | 339 | ||||||||||||||||||||
Total AUM | Total AUM | $ | 1,477 | $ | 635 | $ | 1,186 | $ | 598 | Total AUM | $ | 1,486 | $ | 1,000 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
Fee rate in bps | 2021 | 2020 | 2021 | 2020 | ||||||||||
Equity | 72 | 76 | 77 | 75 | ||||||||||
Fixed income | 38 | 29 | 38 | 30 | ||||||||||
Alternatives and Solutions | 33 | 58 | 40 | 59 | ||||||||||
Long-term AUM | 49 | 59 | 55 | 59 | ||||||||||
Liquidity and Overlay Services | 5 | 16 | 6 | 16 | ||||||||||
Total AUM | 35 | 41 | 39 | 42 |
Three Months Ended March 31, | ||||||||||||||
Fee rate in bps | 2022 | 2021 | ||||||||||||
Equity | 70 | 77 | ||||||||||||
Fixed income | 36 | 33 | ||||||||||||
Alternatives and Solutions | 35 | 45 | ||||||||||||
Long-term AUM | 48 | 57 | ||||||||||||
Liquidity and Overlay Services | 7 | 8 | ||||||||||||
Total AUM | 35 | 40 |
12 |
Management’s Discussion and Analysis |
$ in billions | $ in billions | At June 30, 2021 | At December 31, 2020 | $ in billions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Investment securities portfolio: | Investment securities portfolio: | Investment securities portfolio: | ||||||||||||||
Investment securities—AFS | Investment securities—AFS | $ | 73.4 | $ | 90.3 | Investment securities—AFS | $ | 69.3 | $ | 81.6 | ||||||
Investment securities—HTM | Investment securities—HTM | 62.8 | 52.6 | Investment securities—HTM | 60.6 | 61.7 | ||||||||||
Total investment securities | Total investment securities | $ | 136.2 | $ | 142.9 | Total investment securities | $ | 129.9 | $ | 143.3 | ||||||
Wealth Management Loans2 | Wealth Management Loans2 | Wealth Management Loans2 | ||||||||||||||
Residential real estate | Residential real estate | $ | 38.9 | $ | 35.2 | Residential real estate | $ | 47.2 | $ | 44.2 | ||||||
Securities-based lending and Other3 | Securities-based lending and Other3 | 75.8 | 62.9 | Securities-based lending and Other3 | 89.5 | 85.0 | ||||||||||
Total, net of ACL | Total, net of ACL | $ | 114.7 | $ | 98.1 | Total, net of ACL | $ | 136.7 | $ | 129.2 | ||||||
Institutional Securities Loans2 | Institutional Securities Loans2 | Institutional Securities Loans2 | ||||||||||||||
Corporate | Corporate | $ | 5.5 | $ | 7.9 | Corporate | $ | 7.0 | $ | 6.5 | ||||||
Secured lending facilities | Secured lending facilities | 30.5 | 27.4 | Secured lending facilities | 32.6 | 33.1 | ||||||||||
Commercial and Residential real estate | Commercial and Residential real estate | 9.8 | 10.1 | Commercial and Residential real estate | 11.7 | 10.4 | ||||||||||
Securities-based lending and Other | Securities-based lending and Other | 7.1 | 5.4 | Securities-based lending and Other | 6.8 | 6.3 | ||||||||||
Total, net of ACL | Total, net of ACL | $ | 52.9 | $ | 50.8 | Total, net of ACL | $ | 58.1 | $ | 56.3 | ||||||
Total Assets | Total Assets | $ | 357.5 | $ | 346.5 | Total Assets | $ | 390.0 | $ | 386.1 | ||||||
Deposits4 | Deposits4 | $ | 318.7 | $ | 309.7 | Deposits4 | $ | 352.1 | $ | 346.2 |
March 2022 Form 10-Q | 13 |
Management’s Discussion and Analysis |
At June 30, 2021 | At March 31, 2022 | |||||||||||||||||||||||||||
$ in millions | $ in millions | IS | WM | IM | Total | $ in millions | IS | WM | IM | Total | ||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 88,778 | $ | 37,124 | $ | 578 | $ | 126,480 | Cash and cash equivalents | $ | 98,944 | $ | 36,603 | $ | 539 | $ | 136,086 | ||||||||||
Trading assets at fair value | Trading assets at fair value | 314,961 | 1,180 | 5,004 | 321,145 | Trading assets at fair value | 290,709 | 1,598 | 4,574 | 296,881 | ||||||||||||||||||
Investment securities | Investment securities | 40,310 | 135,032 | — | 175,342 | Investment securities | 43,300 | 127,493 | — | 170,793 | ||||||||||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | 79,414 | 16,516 | — | 95,930 | Securities purchased under agreements to resell | 112,144 | 15,623 | — | 127,767 | ||||||||||||||||||
Securities borrowed | Securities borrowed | 125,358 | 1,345 | — | 126,703 | Securities borrowed | 149,957 | 1,038 | — | 150,995 | ||||||||||||||||||
Customer and other receivables | Customer and other receivables | 66,965 | 32,714 | 1,242 | 100,921 | Customer and other receivables | 57,315 | 36,186 | 1,303 | 94,804 | ||||||||||||||||||
Loans1 | Loans1 | 51,329 | 114,708 | 22 | 166,059 | Loans1 | 59,542 | 136,713 | 5 | 196,260 | ||||||||||||||||||
Other assets2 | Other assets2 | 15,142 | 22,517 | 11,566 | 49,225 | Other assets2 | 14,331 | 23,247 | 11,069 | 48,647 | ||||||||||||||||||
Total assets | Total assets | $ | 782,257 | $ | 361,136 | $ | 18,412 | $ | 1,161,805 | Total assets | $ | 826,242 | $ | 378,501 | $ | 17,490 | $ | 1,222,233 |
At December 31, 2020 | ||||||||||||||
$ in millions | IS | WM | IM | Total | ||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 74,281 | $ | 31,275 | $ | 98 | $ | 105,654 | ||||||
Trading assets at fair value | 308,413 | 280 | 4,045 | 312,738 | ||||||||||
Investment securities | 41,630 | 140,524 | — | 182,154 | ||||||||||
Securities purchased under agreements to resell | 84,998 | 31,236 | — | 116,234 | ||||||||||
Securities borrowed | 110,480 | 1,911 | — | 112,391 | ||||||||||
Customer and other receivables | 67,085 | 29,781 | 871 | 97,737 | ||||||||||
Loans1 | 52,449 | 98,130 | 18 | 150,597 | ||||||||||
Other assets2 | 13,986 | 22,458 | 1,913 | 38,357 | ||||||||||
Total assets | $ | 753,322 | $ | 355,595 | $ | 6,945 | $ | 1,115,862 |
At December 31, 2021 | ||||||||||||||
$ in millions | IS | WM | IM | Total | ||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 91,251 | $ | 36,003 | $ | 471 | $ | 127,725 | ||||||
Trading assets at fair value | 288,405 | 1,921 | 4,543 | 294,869 | ||||||||||
Investment securities | 41,407 | 141,591 | — | 182,998 | ||||||||||
Securities purchased under agreements to resell | 112,267 | 7,732 | — | 119,999 | ||||||||||
Securities borrowed | 128,154 | 1,559 | — | 129,713 | ||||||||||
Customer and other receivables | 57,009 | 37,643 | 1,366 | 96,018 | ||||||||||
Loans1 | 58,822 | 129,307 | 5 | 188,134 | ||||||||||
Other assets2 | 14,820 | 22,682 | 11,182 | 48,684 | ||||||||||
Total assets | $ | 792,135 | $ | 378,438 | $ | 17,567 | $ | 1,188,140 |
14 | March 2022 Form 10-Q |
Management’s Discussion and Analysis |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Cash deposits with central banks | Cash deposits with central banks | $ | 67,662 | $ | 49,669 | Cash deposits with central banks | $ | 78,160 | $ | 70,147 | ||||||
Unencumbered HQLA Securities1: | Unencumbered HQLA Securities1: | Unencumbered HQLA Securities1: | ||||||||||||||
U.S. government obligations | U.S. government obligations | 127,603 | 136,555 | U.S. government obligations | 122,646 | 154,879 | ||||||||||
U.S. agency and agency mortgage-backed securities | U.S. agency and agency mortgage-backed securities | 109,294 | 99,659 | U.S. agency and agency mortgage-backed securities | 91,265 | 110,435 | ||||||||||
Non-U.S. sovereign obligations2 | Non-U.S. sovereign obligations2 | 29,204 | 39,745 | Non-U.S. sovereign obligations2 | 22,522 | 11,959 | ||||||||||
Other investment grade securities | Other investment grade securities | 793 | 2,053 | Other investment grade securities | 648 | 607 | ||||||||||
Total HQLA1 | Total HQLA1 | $ | 334,556 | $ | 327,681 | Total HQLA1 | $ | 315,241 | $ | 348,027 | ||||||
Cash deposits with banks (non-HQLA) | Cash deposits with banks (non-HQLA) | 9,220 | 10,942 | Cash deposits with banks (non-HQLA) | 7,986 | 7,976 | ||||||||||
Total Liquidity Resources | Total Liquidity Resources | $ | 343,776 | $ | 338,623 | Total Liquidity Resources | $ | 323,227 | $ | 356,003 |
At June 30, 2021 | At December 31, 2020 | Average Daily Balance Three Months Ended | At March 31, 2022 | At December 31, 2021 | Average Daily Balance Three Months Ended | |||||||||||||||||
$ in millions | $ in millions | June 30, 2021 | $ in millions | March 31, 2022 | ||||||||||||||||||
Bank legal entities | Bank legal entities | Bank legal entities | ||||||||||||||||||||
U.S. | U.S. | $ | 172,944 | $ | 178,033 | $ | 176,625 | U.S. | $ | 160,425 | $ | 171,642 | $ | 165,108 | ||||||||
Non-U.S. | Non-U.S. | 9,845 | 7,670 | 8,473 | Non-U.S. | 9,480 | 8,582 | 8,978 | ||||||||||||||
Total Bank legal entities | Total Bank legal entities | 182,789 | 185,703 | 185,098 | Total Bank legal entities | 169,905 | 180,224 | 174,086 | ||||||||||||||
Non-Bank legal entities | Non-Bank legal entities | Non-Bank legal entities | ||||||||||||||||||||
U.S.: | U.S.: | U.S.: | ||||||||||||||||||||
Parent Company | Parent Company | 67,997 | 59,468 | 63,911 | Parent Company | 35,496 | 60,391 | 44,846 | ||||||||||||||
Non-Parent Company | Non-Parent Company | 41,037 | 33,368 | 43,511 | Non-Parent Company | 58,073 | 52,932 | 59,925 | ||||||||||||||
Total U.S. | Total U.S. | 109,034 | 92,836 | 107,422 | Total U.S. | 93,569 | 113,323 | 104,771 | ||||||||||||||
Non-U.S. | Non-U.S. | 51,953 | 60,084 | 59,394 | Non-U.S. | 59,753 | 62,456 | 59,424 | ||||||||||||||
Total Non-Bank legal entities | Total Non-Bank legal entities | 160,987 | 152,920 | 166,816 | Total Non-Bank legal entities | 153,322 | 175,779 | 164,195 | ||||||||||||||
Total Liquidity Resources | Total Liquidity Resources | $ | 343,776 | $ | 338,623 | $ | 351,914 | Total Liquidity Resources | $ | 323,227 | $ | 356,003 | $ | 338,281 |
Average Daily Balance Three Months Ended | Average Daily Balance Three Months Ended | |||||||||||||||
$ in millions | $ in millions | June 30, 2021 | March 31, 2021 | $ in millions | March 31, 2022 | December 31, 2021 | ||||||||||
Eligible HQLA1 | Eligible HQLA1 | Eligible HQLA1 | ||||||||||||||
Cash deposits with central banks | Cash deposits with central banks | $ | 56,430 | $ | 50,815 | Cash deposits with central banks | $ | 63,336 | $ | 54,606 | ||||||
Securities2 | Securities2 | 171,729 | 166,060 | Securities2 | 171,692 | 183,105 | ||||||||||
Total Eligible HQLA1 | Total Eligible HQLA1 | $ | 228,159 | $ | 216,875 | Total Eligible HQLA1 | $ | 235,028 | $ | 237,711 | ||||||
LCR | LCR | 126 | % | 125 | % | LCR | 130 | % | 134 | % |
March 2022 Form 10-Q | 15 |
Management’s Discussion and Analysis |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Securities purchased under agreements to resell and Securities borrowed | Securities purchased under agreements to resell and Securities borrowed | $ | 222,633 | $ | 228,625 | Securities purchased under agreements to resell and Securities borrowed | $ | 278,762 | $ | 249,712 | ||||||
Securities sold under agreements to repurchase and Securities loaned | Securities sold under agreements to repurchase and Securities loaned | $ | 67,219 | $ | 58,318 | Securities sold under agreements to repurchase and Securities loaned | $ | 74,290 | $ | 74,487 | ||||||
Securities received as collateral1 | Securities received as collateral1 | $ | 7,166 | $ | 4,277 | Securities received as collateral1 | $ | 7,844 | $ | 10,504 |
Average Daily Balance Three Months Ended | Average Daily Balance Three Months Ended | |||||||||||||||
$ in millions | $ in millions | June 30, 2021 | December 31, 2020 | $ in millions | March 31, 2022 | December 31, 2021 | ||||||||||
Securities purchased under agreements to resell and Securities borrowed | Securities purchased under agreements to resell and Securities borrowed | $ | 225,988 | $ | 195,376 | Securities purchased under agreements to resell and Securities borrowed | $ | 259,971 | $ | 236,327 | ||||||
Securities sold under agreements to repurchase and Securities loaned | Securities sold under agreements to repurchase and Securities loaned | $ | 67,568 | $ | 54,528 | Securities sold under agreements to repurchase and Securities loaned | $ | 72,387 | $ | 69,565 |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Savings and demand deposits: | Savings and demand deposits: | Savings and demand deposits: | ||||||||||||||
Brokerage sweep deposits1 | Brokerage sweep deposits1 | $ | 256,730 | $ | 232,071 | Brokerage sweep deposits1 | $ | 316,044 | $ | 298,352 | ||||||
Savings and other | Savings and other | 42,951 | 47,150 | Savings and other | 32,607 | 34,395 | ||||||||||
Total Savings and demand deposits | Total Savings and demand deposits | 299,681 | 279,221 | Total Savings and demand deposits | 348,651 | 332,747 | ||||||||||
Time deposits | Time deposits | 20,677 | 31,561 | Time deposits | 12,189 | 14,827 | ||||||||||
Total2 | Total2 | $ | 320,358 | $ | 310,782 | Total2 | $ | 360,840 | $ | 347,574 |
$ in millions | $ in millions | Parent Company | Subsidiaries | Total | $ in millions | Parent Company | Subsidiaries | Total | ||||||||||||||
Original maturities of one year or less | Original maturities of one year or less | $ | — | $ | 5,538 | $ | 5,538 | Original maturities of one year or less | $ | — | $ | 4,146 | $ | 4,146 | ||||||||
Original maturities greater than one year | Original maturities greater than one year | Original maturities greater than one year | ||||||||||||||||||||
2021 | $ | 7,320 | $ | 2,600 | $ | 9,920 | ||||||||||||||||
2022 | 2022 | 11,181 | 6,853 | 18,034 | 2022 | $ | 7,034 | $ | 5,273 | $ | 12,307 | |||||||||||
2023 | 2023 | 17,043 | 5,484 | 22,527 | 2023 | 13,710 | 7,555 | 21,265 | ||||||||||||||
2024 | 2024 | 20,839 | 8,194 | 29,033 | 2024 | 20,066 | 8,779 | 28,845 | ||||||||||||||
2025 | 2025 | 14,839 | 6,802 | 21,641 | 2025 | 19,821 | 7,121 | 26,942 | ||||||||||||||
2026 | 2026 | 19,652 | 5,537 | 25,189 | ||||||||||||||||||
Thereafter | Thereafter | 91,456 | 25,993 | 117,449 | Thereafter | 85,382 | 25,741 | 111,123 | ||||||||||||||
Total | Total | $ | 162,678 | $ | 55,926 | $ | 218,604 | Total | $ | 165,665 | $ | 60,006 | $ | 225,671 | ||||||||
Total Borrowings | Total Borrowings | $ | 162,678 | $ | 61,464 | $ | 224,142 | Total Borrowings | $ | 165,665 | $ | 64,152 | $ | 229,817 | ||||||||
Maturities over next 12 months2 | Maturities over next 12 months2 | $ | 16,891 | Maturities over next 12 months2 | $ | 21,328 |
16 | March 2022 Form 10-Q |
Management’s Discussion and Analysis |
Parent Company | |||||||||||
Short-Term Debt | Long-Term Debt | Rating Outlook | |||||||||
DBRS, Inc. | R-1 (middle) | A (high) | Stable | ||||||||
Fitch Ratings, Inc. | F1 | A | |||||||||
Moody’s Investors Service, Inc. | P-1 | A1 | Stable | ||||||||
Rating and Investment Information, Inc. | a-1 | A | Stable | ||||||||
S&P Global Ratings | A-2 | BBB+ | Positive |
MSBNA | |||||||||||
Short-Term Debt | Long-Term Debt | Rating Outlook | |||||||||
Fitch Ratings, Inc. | F1 | A+ | |||||||||
Moody’s Investors Service, Inc. | P-1 | Aa3 | Stable | ||||||||
S&P Global Ratings | A-1 | A+ | Stable |
MSPBNA | |||||||||||
Short-Term Debt | Long-Term Debt | Rating Outlook | |||||||||
Moody’s Investors Service, Inc. | P-1 | Aa3 | Stable | ||||||||
S&P Global Ratings | A-1 | A+ | Stable |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
in millions, except for per share data | in millions, except for per share data | 2021 | 2020 | 2021 | 2020 | in millions, except for per share data | 2022 | 2021 | ||||||||||||||||||||
Number of shares | Number of shares | 34 | — | 62 | 29 | Number of shares | 30 | 28 | ||||||||||||||||||||
Average price per share | Average price per share | $ | 86.21 | $ | — | $ | 82.31 | $ | 46.01 | Average price per share | $ | 95.20 | $ | 77.47 | ||||||||||||||
Total | Total | $ | 2,939 | $ | — | $ | 5,074 | $ | 1,347 | Total | $ | 2,872 | $ | 2,135 |
Announcement date | |||||
Amount per share | $0.70 | ||||
Date to be paid | |||||
Shareholders of record as of |
March 2022 Form 10-Q | 17 |
Management’s Discussion and Analysis |
At June 30, 2021 and December 31, 2020 | At March 31, 2022 and December 31, 2021 | |||||||||||||||||||||||||||||||||
Standardized | Advanced | Standardized | Advanced | |||||||||||||||||||||||||||||||
Capital buffers | Capital buffers | Capital buffers | ||||||||||||||||||||||||||||||||
Capital conservation buffer | Capital conservation buffer | — | 2.5% | Capital conservation buffer | — | 2.5% | ||||||||||||||||||||||||||||
SCB1 | SCB1 | 5.7% | N/A | SCB1 | 5.7% | N/A | ||||||||||||||||||||||||||||
G-SIB capital surcharge2 | G-SIB capital surcharge2 | 3.0% | G-SIB capital surcharge2 | 3.0% | ||||||||||||||||||||||||||||||
CCyB3 | CCyB3 | 0% | CCyB3 | 0% | ||||||||||||||||||||||||||||||
Capital buffer requirement4 | 8.7% | 5.5% | ||||||||||||||||||||||||||||||||
At June 30, 2021 and December 31, 2020 | ||||||||||||||||||||||||||||||||||
Regulatory Minimum | Standardized | Advanced | ||||||||||||||||||||||||||||||||
Required ratios5 | ||||||||||||||||||||||||||||||||||
Common Equity Tier 1 capital ratio | 4.5 | % | 13.2% | 10.0% | ||||||||||||||||||||||||||||||
Tier 1 capital ratio | 6.0 | % | 14.7% | 11.5% | ||||||||||||||||||||||||||||||
Total capital ratio | 8.0 | % | 16.7% | 13.5% | ||||||||||||||||||||||||||||||
Capital buffer requirement | Capital buffer requirement | 8.7% | 5.5% |
Regulatory Minimum | At March 31, 2022 and December 31, 2021 | ||||||||||||||||
Standardized | Advanced | ||||||||||||||||
Required ratios1 | |||||||||||||||||
Common Equity Tier 1 capital ratio | 4.5 | % | 13.2% | 10.0% | |||||||||||||
Tier 1 capital ratio | 6.0 | % | 14.7% | 11.5% | |||||||||||||
Total capital ratio | 8.0 | % | 16.7% | 13.5% |
$ in millions | $ in millions | Required Ratio1 | At June 30, 2021 | At December 31, 2020 | $ in millions | Required Ratio1 | At March 31, 2022 | At December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Risk-based capital— Standardized | Risk-based capital— Standardized | Risk-based capital— Standardized | ||||||||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 capital | Common Equity Tier 1 capital | $ | 76,815 | $ | 78,650 | Common Equity Tier 1 capital | $ | 72,477 | $ | 75,742 | ||||||||||||||||||||||||||||||||||||
Tier 1 capital | Tier 1 capital | 84,612 | 88,079 | Tier 1 capital | 80,121 | 83,348 | ||||||||||||||||||||||||||||||||||||||||
Total capital | Total capital | 92,782 | 97,213 | Total capital | 89,468 | 93,166 | ||||||||||||||||||||||||||||||||||||||||
Total RWA | Total RWA | 462,808 | 453,106 | Total RWA | 501,429 | 471,921 | ||||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 capital ratio | Common Equity Tier 1 capital ratio | 13.2 | % | 16.6 | % | 17.4 | % | Common Equity Tier 1 capital ratio | 13.2 | % | 14.5 | % | 16.0 | % | ||||||||||||||||||||||||||||||||
Tier 1 capital ratio | Tier 1 capital ratio | 14.7 | % | 18.3 | % | 19.4 | % | Tier 1 capital ratio | 14.7 | % | 16.0 | % | 17.7 | % | ||||||||||||||||||||||||||||||||
Total capital ratio | Total capital ratio | 16.7 | % | 20.0 | % | 21.5 | % | Total capital ratio | 16.7 | % | 17.8 | % | 19.7 | % |
$ in millions | Required Ratio1 | At June 30, 2021 | At December 31, 2020 | |||||||||||
Risk-based capital— Advanced | ||||||||||||||
Common Equity Tier 1 capital | $ | 76,815 | $ | 78,650 | ||||||||||
Tier 1 capital | 84,612 | 88,079 | ||||||||||||
Total capital | 92,550 | 96,994 | ||||||||||||
Total RWA | 434,741 | 445,151 | ||||||||||||
Common Equity Tier 1 capital ratio | 10.0 | % | 17.7 | % | 17.7 | % | ||||||||
Tier 1 capital ratio | 11.5 | % | 19.5 | % | 19.8 | % | ||||||||
Total capital ratio | 13.5 | % | 21.3 | % | 21.8 | % | ||||||||
$ in millions | Required Ratio1 | At June 30, 2021 | At December 31, 2020 | |||||||||||
Leverage-based capital | ||||||||||||||
Adjusted average assets2 | $ | 1,135,262 | $ | 1,053,510 | ||||||||||
Tier 1 leverage ratio | 4.0 | % | 7.5 | % | 8.4 | % | ||||||||
Supplementary leverage exposure3,4 | $ | 1,439,971 | $ | 1,192,506 | ||||||||||
SLR4 | 5.0 | % | 5.9 | % | 7.4 | % |
18 | March 2022 Form 10-Q |
Management’s Discussion and Analysis |
$ in millions | Required Ratio1 | At March 31, 2022 | At December 31, 2021 | |||||||||||
Risk-based capital— Advanced | ||||||||||||||
Common Equity Tier 1 capital | $ | 72,477 | $ | 75,742 | ||||||||||
Tier 1 capital | 80,121 | 83,348 | ||||||||||||
Total capital | 89,129 | 92,927 | ||||||||||||
Total RWA | 456,524 | 435,749 | ||||||||||||
Common Equity Tier 1 capital ratio | 10.0 | % | 15.9 | % | 17.4 | % | ||||||||
Tier 1 capital ratio | 11.5 | % | 17.6 | % | 19.1 | % | ||||||||
Total capital ratio | 13.5 | % | 19.5 | % | 21.3 | % | ||||||||
$ in millions | Required Ratio1 | At March 31, 2022 | At December 31, 2021 | |||||||||||
Leverage-based capital | ||||||||||||||
Adjusted average assets2 | $ | 1,184,494 | $ | 1,169,939 | ||||||||||
Tier 1 leverage ratio | 4.0 | % | 6.8 | % | 7.1 | % | ||||||||
Supplementary leverage exposure3 | $ | 1,466,624 | $ | 1,476,962 | ||||||||||
SLR | 5.0 | % | 5.5 | % | 5.6 | % |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | Change | $ in millions | At March 31, 2022 | At December 31, 2021 | Change | ||||||||||||||||||||
Common Equity Tier 1 capital | Common Equity Tier 1 capital | Common Equity Tier 1 capital | ||||||||||||||||||||||||||
Common stock and surplus | Common stock and surplus | $ | 16,852 | $ | 15,799 | $ | 1,053 | Common stock and surplus | $ | 8,331 | $ | 11,361 | $ | (3,030) | ||||||||||||||
Retained earnings | Retained earnings | 85,043 | 78,978 | 6,065 | Retained earnings | 91,907 | 89,679 | 2,228 | ||||||||||||||||||||
AOCI | AOCI | (2,523) | (1,962) | (561) | AOCI | (4,902) | (3,102) | (1,800) | ||||||||||||||||||||
Regulatory adjustments and deductions: | Regulatory adjustments and deductions: | Regulatory adjustments and deductions: | ||||||||||||||||||||||||||
Net goodwill | Net goodwill | (16,693) | (11,527) | (5,166) | Net goodwill | (16,610) | (16,641) | 31 | ||||||||||||||||||||
Net intangible assets | Net intangible assets | (7,032) | (4,165) | (2,867) | Net intangible assets | (6,610) | (6,704) | 94 | ||||||||||||||||||||
Other adjustments and deductions1 | Other adjustments and deductions1 | 1,168 | 1,527 | (359) | Other adjustments and deductions1 | 361 | 1,149 | (788) | ||||||||||||||||||||
Total Common Equity Tier 1 capital | Total Common Equity Tier 1 capital | $ | 76,815 | $ | 78,650 | $ | (1,835) | Total Common Equity Tier 1 capital | $ | 72,477 | $ | 75,742 | $ | (3,265) | ||||||||||||||
Additional Tier 1 capital | Additional Tier 1 capital | Additional Tier 1 capital | ||||||||||||||||||||||||||
Preferred stock | Preferred stock | $ | 7,750 | $ | 9,250 | $ | (1,500) | Preferred stock | $ | 7,750 | $ | 7,750 | $ | — | ||||||||||||||
Noncontrolling interests | Noncontrolling interests | 561 | 619 | (58) | Noncontrolling interests | 572 | 562 | 10 | ||||||||||||||||||||
Additional Tier 1 capital | Additional Tier 1 capital | $ | 8,311 | $ | 9,869 | $ | (1,558) | Additional Tier 1 capital | $ | 8,322 | $ | 8,312 | $ | 10 | ||||||||||||||
Deduction for investments in covered funds | Deduction for investments in covered funds | (514) | (440) | (74) | Deduction for investments in covered funds | (678) | (706) | 28 | ||||||||||||||||||||
Total Tier 1 capital | Total Tier 1 capital | $ | 84,612 | $ | 88,079 | $ | (3,467) | Total Tier 1 capital | $ | 80,121 | $ | 83,348 | $ | (3,227) | ||||||||||||||
Standardized Tier 2 capital | Standardized Tier 2 capital | Standardized Tier 2 capital | ||||||||||||||||||||||||||
Subordinated debt | Subordinated debt | $ | 7,107 | $ | 7,737 | $ | (630) | Subordinated debt | $ | 8,119 | $ | 8,609 | $ | (490) | ||||||||||||||
Eligible ACL | Eligible ACL | 1,168 | 1,265 | (97) | Eligible ACL | 1,329 | 1,155 | 174 | ||||||||||||||||||||
Other adjustments and deductions | Other adjustments and deductions | (105) | 132 | (237) | Other adjustments and deductions | (101) | 54 | (155) | ||||||||||||||||||||
Total Standardized Tier 2 capital | Total Standardized Tier 2 capital | $ | 8,170 | $ | 9,134 | $ | (964) | Total Standardized Tier 2 capital | $ | 9,347 | $ | 9,818 | $ | (471) | ||||||||||||||
Total Standardized capital | Total Standardized capital | $ | 92,782 | $ | 97,213 | $ | (4,431) | Total Standardized capital | $ | 89,468 | $ | 93,166 | $ | (3,698) | ||||||||||||||
Advanced Tier 2 capital | Advanced Tier 2 capital | Advanced Tier 2 capital | ||||||||||||||||||||||||||
Subordinated debt | Subordinated debt | $ | 7,107 | $ | 7,737 | $ | (630) | Subordinated debt | $ | 8,119 | $ | 8,609 | $ | (490) | ||||||||||||||
Eligible credit reserves | Eligible credit reserves | 936 | 1,046 | (110) | Eligible credit reserves | 990 | 916 | 74 | ||||||||||||||||||||
Other adjustments and deductions | Other adjustments and deductions | (105) | 132 | (237) | Other adjustments and deductions | (101) | 54 | (155) | ||||||||||||||||||||
Total Advanced Tier 2 capital | Total Advanced Tier 2 capital | $ | 7,938 | $ | 8,915 | $ | (977) | Total Advanced Tier 2 capital | $ | 9,008 | $ | 9,579 | $ | (571) | ||||||||||||||
Total Advanced capital | Total Advanced capital | $ | 92,550 | $ | 96,994 | $ | (4,444) | Total Advanced capital | $ | 89,129 | $ | 92,927 | $ | (3,798) |
March 2022 Form 10-Q | 19 |
Management’s Discussion and Analysis |
Six Months Ended June 30, 2021 | Three Months Ended March 31, 2022 | |||||||||||||||
$ in millions | $ in millions | Standardized | Advanced | $ in millions | Standardized | Advanced | ||||||||||
Credit risk RWA | Credit risk RWA | Credit risk RWA | ||||||||||||||
Balance at December 31, 2020 | $ | 387,066 | $ | 284,930 | ||||||||||||
Balance at December 31, 2021 | Balance at December 31, 2021 | $ | 416,502 | $ | 285,247 | |||||||||||
Change related to the following items: | Change related to the following items: | Change related to the following items: | ||||||||||||||
Derivatives | Derivatives | 3,182 | (18,766) | Derivatives | 13,678 | 12,933 | ||||||||||
Securities financing transactions | Securities financing transactions | 4,750 | 350 | Securities financing transactions | 8,826 | 2,692 | ||||||||||
Investment securities | Investment securities | (2,422) | (257) | Investment securities | (1,586) | (4,303) | ||||||||||
Commitments, guarantees and loans | Commitments, guarantees and loans | 415 | 5,862 | Commitments, guarantees and loans | 6,926 | 116 | ||||||||||
Equity investments | Equity investments | 1,696 | 1,754 | Equity investments | (2,465) | (2,568) | ||||||||||
Other credit risk1 | 4,992 | 4,444 | ||||||||||||||
Other credit risk | Other credit risk | 3,945 | 4,863 | |||||||||||||
Total change in credit risk RWA | Total change in credit risk RWA | $ | 12,613 | $ | (6,613) | Total change in credit risk RWA | $ | 29,324 | $ | 13,733 | ||||||
Balance at June 30, 2021 | $ | 399,679 | $ | 278,317 | ||||||||||||
Balance at March 31, 2022 | Balance at March 31, 2022 | $ | 445,826 | $ | 298,980 | |||||||||||
Market risk RWA | Market risk RWA | Market risk RWA | ||||||||||||||
Balance at December 31, 2020 | $ | 66,040 | $ | 66,040 | ||||||||||||
Balance at December 31, 2021 | Balance at December 31, 2021 | $ | 55,419 | $ | 55,419 | |||||||||||
Change related to the following items: | Change related to the following items: | Change related to the following items: | ||||||||||||||
Regulatory VaR | Regulatory VaR | (6,687) | (6,687) | Regulatory VaR | 277 | 277 | ||||||||||
Regulatory stressed VaR | Regulatory stressed VaR | 768 | 768 | Regulatory stressed VaR | 2,564 | 2,564 | ||||||||||
Incremental risk charge | Incremental risk charge | (720) | (720) | Incremental risk charge | (230) | (230) | ||||||||||
Comprehensive risk measure | Comprehensive risk measure | (303) | (343) | Comprehensive risk measure | (395) | (527) | ||||||||||
Specific risk | Specific risk | 4,031 | 4,031 | Specific risk | (2,032) | (2,032) | ||||||||||
Total change in market risk RWA | Total change in market risk RWA | $ | (2,911) | $ | (2,951) | Total change in market risk RWA | $ | 184 | $ | 52 | ||||||
Balance at June 30, 2021 | $ | 63,129 | $ | 63,089 | ||||||||||||
Balance at March 31, 2022 | Balance at March 31, 2022 | $ | 55,603 | $ | 55,471 | |||||||||||
Operational risk RWA | Operational risk RWA | Operational risk RWA | ||||||||||||||
Balance at December 31, 2020 | N/A | $ | 94,181 | |||||||||||||
Balance at December 31, 2021 | Balance at December 31, 2021 | N/A | $ | 95,083 | ||||||||||||
Change in operational risk RWA | Change in operational risk RWA | N/A | (846) | Change in operational risk RWA | N/A | 6,990 | ||||||||||
Balance at June 30, 2021 | N/A | $ | 93,335 | |||||||||||||
Balance at March 31, 2022 | Balance at March 31, 2022 | N/A | $ | 102,073 | ||||||||||||
Total RWA | Total RWA | $ | 462,808 | $ | 434,741 | Total RWA | $ | 501,429 | $ | 456,524 |
Actual Amount/Ratio | |||||||||||||||||||||||||||||||
Actual Amount/Ratio | |||||||||||||||||||||||||||||||
$ in millions | $ in millions | Regulatory Minimum | Required Ratio1 | At June 30, 2021 | At December 31, 2020 | $ in millions | Regulatory Minimum | Required Ratio1 | At March 31, 2022 | At December 31, 2021 | |||||||||||||||||||||
External TLAC2 | External TLAC2 | $ | 225,830 | $ | 216,129 | External TLAC2 | $ | 230,546 | $ | 235,681 | |||||||||||||||||||||
External TLAC as a % of RWA | External TLAC as a % of RWA | 18.0 | % | 21.5 | % | 49.0 | % | 47.7 | % | External TLAC as a % of RWA | 18.0 | % | 21.5 | % | 46.0 | % | 49.9 | % | |||||||||||||
External TLAC as a % of leverage exposure | External TLAC as a % of leverage exposure | 7.5 | % | 9.5 | % | 15.7 | % | 18.1 | % | External TLAC as a % of leverage exposure | 7.5 | % | 9.5 | % | 15.7 | % | 16.0 | % | |||||||||||||
Eligible LTD3 | Eligible LTD3 | $ | 131,951 | $ | 120,561 | Eligible LTD3 | $ | 144,959 | $ | 144,659 | |||||||||||||||||||||
Eligible LTD as a % of RWA | Eligible LTD as a % of RWA | 9.0 | % | 9.0 | % | 28.5 | % | 26.6 | % | Eligible LTD as a % of RWA | 9.0 | % | 9.0 | % | 28.9 | % | 30.7 | % | |||||||||||||
Eligible LTD as a % of leverage exposure | Eligible LTD as a % of leverage exposure | 4.5 | % | 4.5 | % | 9.2 | % | 10.1 | % | Eligible LTD as a % of leverage exposure | 4.5 | % | 4.5 | % | 9.9 | % | 9.8 | % |
20 |
Management’s Discussion and Analysis |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in billions | $ in billions | 2021 | 2020 | 2021 | 2020 | $ in billions | 2022 | 2021 | ||||||||||||||||||||
Institutional Securities | Institutional Securities | $ | 43.5 | $ | 42.8 | $ | 43.5 | $ | 42.8 | Institutional Securities | $ | 48.8 | $ | 43.5 | ||||||||||||||
Wealth Management2 | 28.6 | 18.2 | 28.6 | 18.2 | ||||||||||||||||||||||||
Investment Management3 | 10.7 | 2.6 | 7.1 | 2.6 | ||||||||||||||||||||||||
Wealth Management | Wealth Management | 31.0 | 28.5 | |||||||||||||||||||||||||
Investment Management2 | Investment Management2 | 10.6 | 4.4 | |||||||||||||||||||||||||
Parent | Parent | 16.0 | 14.0 | 17.1 | 12.4 | Parent | 6.3 | 17.9 | ||||||||||||||||||||
Total | Total | $ | 98.8 | $ | 77.6 | $ | 96.3 | $ | 76.0 | Total | $ | 96.7 | $ | 94.3 |
21 |
Management’s Discussion and Analysis |
22 |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||
June 30, 2021 | March 31, 2022 | |||||||||||||||||||||||||||
$ in millions | $ in millions | Period End | Average | High2 | Low2 | $ in millions | Period End | Average | High1 | Low1 | ||||||||||||||||||
Interest rate and credit spread | Interest rate and credit spread | $ | 29 | $ | 31 | $ | 39 | $ | 28 | Interest rate and credit spread | $ | 30 | $ | 25 | $ | 33 | $ | 21 | ||||||||||
Equity price | Equity price | 21 | 24 | 32 | 19 | Equity price | 28 | 25 | 41 | 17 | ||||||||||||||||||
Foreign exchange rate | Foreign exchange rate | 8 | 8 | 15 | 5 | Foreign exchange rate | 16 | 8 | 19 | 3 | ||||||||||||||||||
Commodity price | Commodity price | 10 | 11 | 16 | 8 | Commodity price | 24 | 20 | 27 | 15 | ||||||||||||||||||
Less: Diversification benefit1 | (28) | (29) | N/A | |||||||||||||||||||||||||
Less: Diversification benefit2 | Less: Diversification benefit2 | (51) | (41) | N/A | ||||||||||||||||||||||||
Primary Risk Categories | Primary Risk Categories | $ | 40 | $ | 45 | $ | 58 | $ | 37 | Primary Risk Categories | $ | 47 | $ | 37 | $ | 47 | $ | 31 | ||||||||||
Credit Portfolio | Credit Portfolio | 12 | 13 | 17 | 11 | Credit Portfolio | 15 | 13 | 15 | 12 | ||||||||||||||||||
Less: Diversification benefit1 | (9) | (10) | N/A | |||||||||||||||||||||||||
Less: Diversification benefit2 | Less: Diversification benefit2 | (15) | (11) | N/A | ||||||||||||||||||||||||
Total Management VaR | Total Management VaR | $ | 43 | $ | 48 | $ | 60 | $ | 41 | Total Management VaR | $ | 47 | $ | 39 | $ | 48 | $ | 32 |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||
March 31, 2021 | December 31, 2021 | |||||||||||||||||||||||||||
$ in millions | $ in millions | Period End | Average | High2 | Low2 | $ in millions | Period End | Average | High1 | Low1 | ||||||||||||||||||
Interest rate and credit spread | Interest rate and credit spread | $ | 31 | $ | 33 | $ | 41 | $ | 29 | Interest rate and credit spread | $ | 21 | $ | 25 | $ | 32 | $ | 21 | ||||||||||
Equity price | Equity price | 30 | 31 | 170 | 19 | Equity price | 20 | 25 | 32 | 20 | ||||||||||||||||||
Foreign exchange rate | Foreign exchange rate | 11 | 14 | 24 | 8 | Foreign exchange rate | 6 | 6 | 9 | 4 | ||||||||||||||||||
Commodity price | Commodity price | 14 | 18 | 27 | 13 | Commodity price | 16 | 17 | 26 | 14 | ||||||||||||||||||
Less: Diversification benefit1 | (36) | (38) | N/A | |||||||||||||||||||||||||
Less: Diversification benefit2 | Less: Diversification benefit2 | (31) | (35) | N/A | ||||||||||||||||||||||||
Primary Risk Categories | Primary Risk Categories | $ | 50 | $ | 58 | $ | 171 | $ | 44 | Primary Risk Categories | $ | 32 | $ | 38 | $ | 51 | $ | 32 | ||||||||||
Credit Portfolio | Credit Portfolio | 17 | 24 | 31 | 17 | Credit Portfolio | 12 | 12 | 13 | 12 | ||||||||||||||||||
Less: Diversification benefit1 | (15) | (13) | N/A | |||||||||||||||||||||||||
Less: Diversification benefit2 | Less: Diversification benefit2 | (12) | (10) | N/A | ||||||||||||||||||||||||
Total Management VaR | Total Management VaR | $ | 52 | $ | 69 | $ | 175 | $ | 50 | Total Management VaR | $ | 32 | $ | 40 | $ | 54 | $ | 32 |
23 |
Risk Disclosures |
$ in millions | $ in millions | At June 30, 2021 | At March 31, 2021 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Derivatives | Derivatives | $ | 7 | $ | 7 | Derivatives | $ | 7 | $ | 7 | ||||||
Borrowings carried at fair value | Borrowings carried at fair value | 48 | 47 | Borrowings carried at fair value | 44 | 48 |
$ in millions | $ in millions | At June 30, 2021 | At March 31, 2021 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Basis point change | Basis point change | Basis point change | ||||||||||||||
+100 | +100 | $ | 1,463 | $ | 1,671 | +100 | $ | 162 | $ | 1,267 | ||||||
-100 | -100 | (498) | (560) | -100 | (622) | (893) |
Loss from 10% Decline | Loss from 10% Decline | |||||||||||||||
$ in millions | $ in millions | At June 30, 2021 | At March 31, 2021 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Investments related to Investment Management activities | Investments related to Investment Management activities | $ | 477 | $ | 472 | Investments related to Investment Management activities | $ | 415 | $ | 407 | ||||||
Other investments: | Other investments: | Other investments: | ||||||||||||||
MUMSS | MUMSS | 172 | 174 | MUMSS | 158 | 167 | ||||||||||
Other Firm investments | Other Firm investments | 232 | 223 | Other Firm investments | 344 | 331 |
24 |
Risk Disclosures |
At June 30, 2021 | At March 31, 2022 | |||||||||||||||||||||||||||
$ in millions | $ in millions | HFI | HFS | FVO | Total | $ in millions | HFI | HFS | FVO | Total | ||||||||||||||||||
Institutional Securities: | Institutional Securities: | Institutional Securities: | ||||||||||||||||||||||||||
Corporate | Corporate | $ | 4,724 | $ | 7,098 | $ | 13 | $ | 11,835 | Corporate | $ | 6,105 | $ | 7,069 | $ | 8 | $ | 13,182 | ||||||||||
Secured lending facilities | Secured lending facilities | 28,217 | 3,951 | 666 | 32,834 | Secured lending facilities | 29,896 | 4,661 | — | 34,557 | ||||||||||||||||||
Commercial and Residential real estate | Commercial and Residential real estate | 6,707 | 620 | 4,270 | 11,597 | Commercial and Residential real estate | 8,276 | 1,986 | 4,492 | 14,754 | ||||||||||||||||||
Securities-based lending and Other | Securities-based lending and Other | 586 | 5 | 9,353 | 9,944 | Securities-based lending and Other | 1,972 | 131 | 7,633 | 9,736 | ||||||||||||||||||
Total Institutional Securities | Total Institutional Securities | 40,234 | 11,674 | 14,302 | 66,210 | Total Institutional Securities | 46,249 | 13,847 | 12,133 | 72,229 | ||||||||||||||||||
Wealth Management: | Wealth Management: | Wealth Management: | ||||||||||||||||||||||||||
Residential real estate | Residential real estate | 38,917 | 10 | — | 38,927 | Residential real estate | 47,236 | 6 | — | 47,242 | ||||||||||||||||||
Securities-based lending and Other | Securities-based lending and Other | 75,877 | 12 | — | 75,889 | Securities-based lending and Other | 89,436 | 160 | — | 89,596 | ||||||||||||||||||
Total Wealth Management | Total Wealth Management | 114,794 | 22 | — | 114,816 | Total Wealth Management | 136,672 | 166 | — | 136,838 | ||||||||||||||||||
Total Investment Management1 | Total Investment Management1 | 5 | 17 | 843 | 865 | Total Investment Management1 | 5 | — | 357 | 362 | ||||||||||||||||||
Total loans2 | Total loans2 | 155,033 | 11,713 | 15,145 | 181,891 | Total loans2 | 182,926 | 14,013 | 12,490 | 209,429 | ||||||||||||||||||
ACL | ACL | (687) | (687) | ACL | (679) | (679) | ||||||||||||||||||||||
Total loans, net of ACL | Total loans, net of ACL | $ | 154,346 | $ | 11,713 | $ | 15,145 | $ | 181,204 | Total loans, net of ACL | $ | 182,247 | $ | 14,013 | $ | 12,490 | $ | 208,750 | ||||||||||
Lending commitments3 | Lending commitments3 | $ | 139,257 | Lending commitments3 | $ | 142,492 | ||||||||||||||||||||||
Total exposure | Total exposure | $ | 320,461 | Total exposure | $ | 351,242 |
At December 31, 2020 | ||||||||||||||
$ in millions | HFI | HFS | FVO | Total | ||||||||||
Institutional Securities: | ||||||||||||||
Corporate | $ | 6,046 | $ | 8,580 | $ | 13 | $ | 14,639 | ||||||
Secured lending facilities | 25,727 | 3,296 | 648 | 29,671 | ||||||||||
Commercial and Residential real estate | 7,346 | 859 | 3,061 | 11,266 | ||||||||||
Securities-based lending and Other | 1,279 | 55 | 7,001 | 8,335 | ||||||||||
Total Institutional Securities | 40,398 | 12,790 | 10,723 | 63,911 | ||||||||||
Wealth Management: | ||||||||||||||
Residential real estate | 35,268 | 11 | — | 35,279 | ||||||||||
Securities-based lending and Other | 62,947 | — | — | 62,947 | ||||||||||
Total Wealth Management | 98,215 | 11 | — | 98,226 | ||||||||||
Total Investment Management1 | 6 | 12 | 425 | 443 | ||||||||||
Total loans2 | 138,619 | 12,813 | 11,148 | 162,580 | ||||||||||
ACL | (835) | (835) | ||||||||||||
Total loans, net of ACL | $ | 137,784 | $ | 12,813 | $ | 11,148 | $ | 161,745 | ||||||
Lending commitments3 | $ | 127,855 | ||||||||||||
Total exposure | $ | 289,600 |
At December 31, 2021 | ||||||||||||||
$ in millions | HFI | HFS | FVO | Total | ||||||||||
Institutional Securities: | ||||||||||||||
Corporate | $ | 5,567 | $ | 8,107 | $ | 8 | $ | 13,682 | ||||||
Secured lending facilities | 31,471 | 3,879 | — | 35,350 | ||||||||||
Commercial and Residential real estate | 7,227 | 1,777 | 4,774 | 13,778 | ||||||||||
Securities-based lending and Other | 1,292 | 45 | 7,710 | 9,047 | ||||||||||
Total Institutional Securities | 45,557 | 13,808 | 12,492 | 71,857 | ||||||||||
Wealth Management: | ||||||||||||||
Residential real estate | 44,251 | 7 | — | 44,258 | ||||||||||
Securities-based lending and Other | 85,143 | 17 | — | 85,160 | ||||||||||
Total Wealth Management | 129,394 | 24 | — | 129,418 | ||||||||||
Total Investment Management1 | 5 | — | 135 | 140 | ||||||||||
Total loans2 | 174,956 | 13,832 | 12,627 | 201,415 | ||||||||||
ACL | (654) | (654) | ||||||||||||
Total loans, net of ACL | $ | 174,302 | $ | 13,832 | $ | 12,627 | $ | 200,761 | ||||||
Lending commitments3 | $ | 134,934 | ||||||||||||
Total exposure | $ | 335,695 |
25 |
Risk Disclosures |
$ in millions | |||||
ACL—Loans | $ | ||||
ACL—Lending Commitments | |||||
Total at December 31, | |||||
Gross charge-offs | |||||
Provision for credit losses | |||||
Other | |||||
Total at | $ | ||||
ACL—Loans | $ | ||||
ACL—Lending commitments | |||||
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | IS | WM | Total | IS | WM | Total | $ in millions | IS | WM | Total | |||||||||||||||||||||||||||||
Loans | Loans | $ | 12 | $ | 4 | $ | 16 | $ | (41) | $ | (1) | $ | (42) | Loans | $ | 24 | $ | 15 | $ | 39 | ||||||||||||||||||||
Lending commitments | Lending commitments | 58 | (1) | 57 | 18 | (1) | 17 | Lending commitments | 20 | (2) | 18 | |||||||||||||||||||||||||||||
Total | Total | $ | 70 | $ | 3 | $ | 73 | $ | (23) | $ | (2) | $ | (25) | Total | $ | 44 | $ | 13 | $ | 57 |
4Q 2022 | 4Q 2023 | |||||||
Year-over-year growth rate | 3.3 | % | 2.1 | % |
At June 30, 2021 | At December 31, 2020 | |||||||||||||
IS | WM | IS | WM | |||||||||||
Accrual | 98.8 | % | 99.3 | % | 99.2 | % | 99.7 | % | ||||||
Nonaccrual1 | 1.2 | % | 0.7 | % | 0.8 | % | 0.3 | % |
At March 31, 2022 | At December 31, 2021 | |||||||||||||
IS | WM | IS | WM | |||||||||||
Accrual | 99.0 | % | 99.8 | % | 98.7 | % | 99.8 | % | ||||||
Nonaccrual1 | 1.0 | % | 0.2 | % | 1.3 | % | 0.2 | % |
$ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | ||||||||||||||
For the Three Months Ended March 31, 2022 | ||||||||||||||||||||
Net charge-off ratio1 | — | % | 0.01 | % | 0.09 | % | — | % | — | % | 0.01 | % | ||||||||
Average loans | $ | 5,802 | $ | 31,353 | $ | 7,805 | $ | 45,521 | $ | 87,900 | $ | 178,381 | ||||||||
For the Three Months Ended March 31, 2021 | ||||||||||||||||||||
Net charge-off ratio1 | 0.02 | % | — | % | 0.12 | % | — | % | — | % | 0.01 | % | ||||||||
Average loans | $ | 5,637 | $ | 25,915 | $ | 7,292 | $ | 35,888 | $ | 65,888 | $ | 140,620 | ||||||||
At June 30, 2021 | At March 31, 2022 | |||||||||||||||||||||||||||||||||
Contractual Years to Maturity | Contractual Years to Maturity | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | $ in millions | <1 | 1-5 | 5-15 | >15 | Total | ||||||||||||||||||||||
Loans | Loans | Loans | ||||||||||||||||||||||||||||||||
AA | AA | $ | 38 | $ | 9 | $ | — | $ | 69 | $ | 116 | AA | $ | 18 | $ | 5 | $ | — | $ | — | $ | 23 | ||||||||||||
A | A | 824 | 707 | 408 | 370 | 2,309 | A | 986 | 892 | 740 | — | 2,618 | ||||||||||||||||||||||
BBB | BBB | 6,297 | 5,113 | 2,287 | 578 | 14,275 | BBB | 6,239 | 8,634 | 474 | — | 15,347 | ||||||||||||||||||||||
BB | BB | 11,581 | 9,095 | 4,234 | 1,285 | 26,195 | BB | 10,520 | 18,820 | 1,758 | 59 | 31,157 | ||||||||||||||||||||||
Other NIG | Other NIG | 5,370 | 6,134 | 4,161 | 3,223 | 18,888 | Other NIG | 5,364 | 9,235 | 3,220 | 160 | 17,979 | ||||||||||||||||||||||
Unrated2 | Unrated2 | 194 | 587 | 485 | 2,582 | 3,848 | Unrated2 | 76 | 790 | 679 | 3,006 | 4,551 | ||||||||||||||||||||||
Total loans, net of ACL | Total loans, net of ACL | 24,304 | 21,645 | 11,575 | 8,107 | 65,631 | Total loans, net of ACL | 23,203 | 38,376 | 6,871 | 3,225 | 71,675 | ||||||||||||||||||||||
Lending commitments | Lending commitments | Lending commitments | ||||||||||||||||||||||||||||||||
AAA | AAA | — | 50 | — | — | 50 | AAA | — | 50 | — | — | 50 | ||||||||||||||||||||||
AA | AA | 3,173 | 1,118 | 2,240 | — | 6,531 | AA | 3,367 | 2,813 | — | — | 6,180 | ||||||||||||||||||||||
A | A | 4,822 | 6,600 | 10,180 | 584 | 22,186 | A | 6,485 | 17,355 | 508 | 309 | 24,657 | ||||||||||||||||||||||
BBB | BBB | 10,168 | 19,803 | 18,561 | 659 | 49,191 | BBB | 5,997 | 43,083 | 777 | — | 49,857 | ||||||||||||||||||||||
BB | BB | 3,017 | 12,323 | 7,837 | 152 | 23,329 | BB | 4,432 | 21,411 | 2,220 | 1 | 28,064 | ||||||||||||||||||||||
Other NIG | Other NIG | 1,649 | 6,663 | 8,292 | 6,915 | 23,519 | Other NIG | 891 | 14,942 | 3,290 | 3 | 19,126 | ||||||||||||||||||||||
Unrated2 | Unrated2 | — | 14 | 66 | 2 | 82 | Unrated2 | — | 20 | 10 | — | 30 | ||||||||||||||||||||||
Total lending commitments | Total lending commitments | 22,829 | 46,571 | 47,176 | 8,312 | 124,888 | Total lending commitments | 21,172 | 99,674 | 6,805 | 313 | 127,964 | ||||||||||||||||||||||
Total exposure | Total exposure | $ | 47,133 | $ | 68,216 | $ | 58,751 | $ | 16,419 | $ | 190,519 | Total exposure | $ | 44,375 | $ | 138,050 | $ | 13,676 | $ | 3,538 | $ | 199,639 |
26 |
Risk Disclosures |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||||||||||||||
Contractual Years to Maturity | Contractual Years to Maturity | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | $ in millions | <1 | 1-5 | 5-15 | >15 | Total | ||||||||||||||||||||||
Loans | Loans | Loans | ||||||||||||||||||||||||||||||||
AA | AA | $ | 279 | $ | 10 | $ | — | $ | — | $ | 289 | AA | $ | — | $ | 35 | $ | 38 | $ | — | $ | 73 | ||||||||||||
A | A | 759 | 798 | 36 | 391 | 1,984 | A | 890 | 1,089 | 675 | — | 2,654 | ||||||||||||||||||||||
BBB | BBB | 5,043 | 5,726 | 2,746 | 469 | 13,984 | BBB | 5,335 | 8,944 | 563 | — | 14,842 | ||||||||||||||||||||||
BB | BB | 10,963 | 7,749 | 5,324 | 503 | 24,539 | BB | 10,734 | 18,349 | 814 | 18 | 29,915 | ||||||||||||||||||||||
Other NIG | Other NIG | 5,214 | 6,956 | 4,002 | 3,269 | 19,441 | Other NIG | 4,656 | 10,475 | 3,439 | 160 | 18,730 | ||||||||||||||||||||||
Unrated2 | Unrated2 | 141 | 142 | 330 | 2,322 | 2,935 | Unrated2 | 171 | 665 | 511 | 3,753 | 5,100 | ||||||||||||||||||||||
Total loans, net of ACL | Total loans, net of ACL | 22,399 | 21,381 | 12,438 | 6,954 | 63,172 | Total loans, net of ACL | 21,786 | 39,557 | 6,040 | 3,931 | 71,314 | ||||||||||||||||||||||
Lending commitments | Lending commitments | Lending commitments | ||||||||||||||||||||||||||||||||
AAA | AAA | — | 50 | — | — | 50 | AAA | — | 50 | — | — | 50 | ||||||||||||||||||||||
AA | AA | 4,047 | 1,038 | 2,135 | — | 7,220 | AA | 3,283 | 2,690 | — | — | 5,973 | ||||||||||||||||||||||
A | A | 6,025 | 8,359 | 9,808 | 425 | 24,617 | A | 5,255 | 17,646 | 407 | 303 | 23,611 | ||||||||||||||||||||||
BBB | BBB | 6,783 | 17,782 | 15,500 | 460 | 40,525 | BBB | 6,703 | 36,096 | 766 | — | 43,565 | ||||||||||||||||||||||
BB | BB | 4,357 | 8,958 | 7,958 | 3,103 | 24,376 | BB | 2,859 | 19,698 | 3,122 | — | 25,679 | ||||||||||||||||||||||
Other NIG | Other NIG | 664 | 7,275 | 6,077 | 2,652 | 16,668 | Other NIG | 992 | 13,420 | 6,180 | 55 | 20,647 | ||||||||||||||||||||||
Unrated2 | Unrated2 | 4 | — | — | — | 4 | Unrated2 | 672 | 40 | 3 | — | 715 | ||||||||||||||||||||||
Total lending commitments | Total lending commitments | 21,880 | 43,462 | 41,478 | 6,640 | 113,460 | Total lending commitments | 19,764 | 89,640 | 10,478 | 358 | 120,240 | ||||||||||||||||||||||
Total exposure | Total exposure | $ | 44,279 | $ | 64,843 | $ | 53,916 | $ | 13,594 | $ | 176,632 | Total exposure | $ | 41,550 | $ | 129,197 | $ | 16,518 | $ | 4,289 | $ | 191,554 |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Industry | Industry | Industry | ||||||||||||||
Financials | Financials | $ | 50,318 | $ | 44,358 | Financials | $ | 54,331 | $ | 52,066 | ||||||
Real estate | Real estate | 30,622 | 25,484 | Real estate | 33,438 | 31,560 | ||||||||||
Industrials | Industrials | 14,855 | 17,446 | |||||||||||||
Healthcare | Healthcare | 17,471 | 12,650 | Healthcare | 13,513 | 12,618 | ||||||||||
Industrials | 17,069 | 15,861 | ||||||||||||||
Information technology | Information technology | 12,844 | 13,471 | |||||||||||||
Communications services | Communications services | 12,481 | 12,600 | Communications services | 12,705 | 12,645 | ||||||||||
Information technology | 11,704 | 11,358 | ||||||||||||||
Consumer discretionary | Consumer discretionary | 10,626 | 11,177 | Consumer discretionary | 12,204 | 11,628 | ||||||||||
Utilities | Utilities | 10,355 | 9,504 | Utilities | 9,931 | 10,310 | ||||||||||
Materials | Materials | 9,275 | 6,394 | |||||||||||||
Energy | Energy | 8,603 | 10,064 | Energy | 9,212 | 8,544 | ||||||||||
Consumer staples | Consumer staples | 8,464 | 9,088 | Consumer staples | 8,254 | 7,855 | ||||||||||
Materials | 5,808 | 6,084 | ||||||||||||||
Insurance | Insurance | 4,583 | 3,889 | Insurance | 7,041 | 4,954 | ||||||||||
Other | Other | 2,415 | 4,515 | Other | 2,036 | 2,063 | ||||||||||
Total exposure | Total exposure | $ | 190,519 | $ | 176,632 | Total exposure | $ | 199,639 | $ | 191,554 |
At June 30, 2021 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||
Loans, net of ACL | $ | 1,415 | $ | 382 | $ | 498 | $ | 2,217 | $ | 4,512 | |||||||
Lending commitments | 4,865 | 6,254 | 3,359 | 6,844 | 21,322 | ||||||||||||
Total exposure | $ | 6,280 | $ | 6,636 | $ | 3,857 | $ | 9,061 | $ | 25,834 |
At December 31, 2020 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||
Loans, net of ACL | $ | 1,241 | $ | 907 | $ | 873 | $ | 2,090 | $ | 5,111 | |||||||
Lending commitments | 2,810 | 4,649 | 2,678 | 4,650 | 14,787 | ||||||||||||
Total exposure | $ | 4,051 | $ | 5,556 | $ | 3,551 | $ | 6,740 | $ | 19,898 |
At March 31, 2022 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | <1 | 1-5 | 5-15 | Total | |||||||||||||
Loans, net of ACL | $ | 923 | $ | 1,168 | $ | 2,254 | $ | 4,345 | |||||||||
Lending commitments | 3,017 | 9,288 | 4,900 | 17,205 | |||||||||||||
Total exposure | $ | 3,940 | $ | 10,456 | $ | 7,154 | $ | 21,550 |
At December 31, 2021 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | <1 | 1-5 | 5-15 | Total | |||||||||||||
Loans, net of ACL | $ | 951 | $ | 2,088 | $ | 1,803 | $ | 4,842 | |||||||||
Lending commitments | 1,619 | 5,288 | 8,879 | 15,786 | |||||||||||||
Total exposure | $ | 2,570 | $ | 7,376 | $ | 10,682 | $ | 20,628 |
At March 31, 2022 | |||||||||||||||||
$ in millions | Loans | Lending Commitments | Total | ||||||||||||||
Corporate | $ | 6,105 | $ | 76,006 | $ | 82,111 | |||||||||||
Secured lending facilities | 29,896 | 14,025 | 43,921 | ||||||||||||||
Commercial real estate | 8,276 | 711 | 8,987 | ||||||||||||||
Other | 1,972 | 885 | 2,857 | ||||||||||||||
Total, before ACL | $ | 46,249 | $ | 91,627 | $ | 137,876 | |||||||||||
ACL | $ | (554) | $ | (443) | $ | (997) |
At December 31, 2021 | |||||||||||||||||
$ in millions | Loans | Lending Commitments | Total | ||||||||||||||
Corporate | $ | 5,567 | $ | 73,585 | $ | 79,152 | |||||||||||
Secured lending facilities | 31,471 | 10,003 | 41,474 | ||||||||||||||
Commercial real estate | 7,227 | 1,475 | 8,702 | ||||||||||||||
Other | 1,292 | 887 | 2,179 | ||||||||||||||
Total, before ACL | $ | 45,557 | $ | 85,950 | $ | 131,507 | |||||||||||
ACL | $ | (543) | $ | (426) | $ | (969) |
27 |
Risk Disclosures |
At June 30, 2021 | |||||||||||||||||
$ in millions | Loans | Lending Commitments | Total | ||||||||||||||
Corporate | $ | 4,724 | $ | 72,175 | $ | 76,899 | |||||||||||
Secured lending facilities | 28,217 | 11,387 | 39,604 | ||||||||||||||
Commercial real estate | 6,707 | 308 | 7,015 | ||||||||||||||
Other | 586 | 661 | 1,247 | ||||||||||||||
Total, before ACL | $ | 40,234 | $ | 84,531 | $ | 124,765 | |||||||||||
ACL | $ | (579) | $ | (397) | $ | (976) |
At December 31, 2020 | |||||||||||||||||
$ in millions | Loans | Lending Commitments | Total | ||||||||||||||
Corporate | $ | 6,046 | $ | 69,488 | $ | 75,534 | |||||||||||
Secured lending facilities | 25,727 | 8,312 | 34,039 | ||||||||||||||
Commercial real estate | 7,346 | 334 | 7,680 | ||||||||||||||
Other | 1,279 | 1,135 | 2,414 | ||||||||||||||
Total, before ACL | $ | 40,398 | $ | 79,269 | $ | 119,667 | |||||||||||
ACL | $ | (739) | $ | (391) | $ | (1,130) |
$ in millions | Corporate | Secured lending facilities | Commercial real estate | Other | Total | ||||||||||||
ACL—Loans | $ | 309 | $ | 198 | $ | 211 | $ | 21 | $ | 739 | |||||||
ACL—Lending commitments | 323 | 38 | 11 | 19 | 391 | ||||||||||||
Total at December 31, 2020 | $ | 632 | $ | 236 | $ | 222 | $ | 40 | $ | 1,130 | |||||||
Gross charge-offs | (14) | (67) | (21) | — | (102) | ||||||||||||
Provision for credit losses | (77) | 49 | 5 | — | (23) | ||||||||||||
Other1 | (2) | (1) | (2) | (24) | (29) | ||||||||||||
Total at June 30, 2021 | $ | 539 | $ | 217 | $ | 204 | $ | 16 | $ | 976 | |||||||
ACL—Loans | $ | 199 | $ | 177 | $ | 194 | $ | 9 | $ | 579 | |||||||
ACL—Lending commitments | 340 | 40 | 10 | 7 | 397 | ||||||||||||
$ in millions | Corporate | Secured Lending Facilities | Commercial Real Estate | Other | Total | ||||||||||||
ACL—Loans | $ | 165 | $ | 163 | $ | 206 | $ | 9 | $ | 543 | |||||||
ACL—Lending commitments | 356 | 41 | 20 | 9 | 426 | ||||||||||||
Total at December 31, 2021 | $ | 521 | $ | 204 | $ | 226 | $ | 18 | $ | 969 | |||||||
Gross charge-offs | — | (3) | (7) | — | (10) | ||||||||||||
Provision for credit losses | 26 | 20 | (1) | (1) | 44 | ||||||||||||
Other | (4) | — | (2) | — | (6) | ||||||||||||
Total at March 31, 2022 | $ | 543 | $ | 221 | $ | 216 | $ | 17 | $ | 997 | |||||||
ACL—Loans | $ | 170 | $ | 172 | $ | 203 | $ | 9 | $ | 554 | |||||||
ACL—Lending commitments | 373 | 49 | 13 | 8 | 443 |
At June 30, 2021 | At December 31, 2020 | At March 31, 2022 | At December 31, 2021 | |||||||||||||
Corporate | Corporate | 4.2 | % | 5.1 | % | Corporate | 2.8 | % | 3.0 | % | ||||||
Secured lending facilities | Secured lending facilities | 0.6 | % | 0.8 | % | Secured lending facilities | 0.6 | % | 0.5 | % | ||||||
Commercial real estate | Commercial real estate | 2.9 | % | 2.9 | % | Commercial real estate | 2.5 | % | 2.9 | % | ||||||
Other | Other | 1.5 | % | 1.7 | % | Other | 0.5 | % | 0.7 | % | ||||||
Total Institutional Securities loans | Total Institutional Securities loans | 1.4 | % | 1.8 | % | Total Institutional Securities loans | 1.2 | % | 1.2 | % |
At June 30, 2021 | At March 31, 2022 | |||||||||||||||||||||||||||||||||
Contractual Years to Maturity | Contractual Years to Maturity | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | $ in millions | <1 | 1-5 | 5-15 | >15 | Total | ||||||||||||||||||||||
Securities-based lending and Other | $ | 65,156 | $ | 6,641 | $ | 2,236 | $ | 1,804 | $ | 75,837 | ||||||||||||||||||||||||
Residential real estate | 7 | — | 6 | 38,858 | 38,871 | |||||||||||||||||||||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | $ | 78,507 | $ | 9,307 | $ | 1,588 | $ | 141 | $ | 89,543 | |||||||||||||||||||||||
Residential real estate loans | Residential real estate loans | 3 | 13 | 1,277 | 45,877 | 47,170 | ||||||||||||||||||||||||||||
Total loans, net of ACL | Total loans, net of ACL | $ | 65,163 | $ | 6,641 | $ | 2,242 | $ | 40,662 | $ | 114,708 | Total loans, net of ACL | $ | 78,510 | $ | 9,320 | $ | 2,865 | $ | 46,018 | $ | 136,713 | ||||||||||||
Lending commitments | Lending commitments | 11,104 | 2,771 | 170 | 324 | 14,369 | Lending commitments | 11,398 | 2,824 | 47 | 259 | 14,528 | ||||||||||||||||||||||
Total exposure | Total exposure | $ | 76,267 | $ | 9,412 | $ | 2,412 | $ | 40,986 | $ | 129,077 | Total exposure | $ | 89,908 | $ | 12,144 | $ | 2,912 | $ | 46,277 | $ | 151,241 |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||||||||||||||
Contractual Years to Maturity | Contractual Years to Maturity | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | $ in millions | <1 | 1-5 | 5-15 | >15 | Total | ||||||||||||||||||||||
Securities-based lending and Other | $ | 54,483 | $ | 4,587 | $ | 2,167 | $ | 1,672 | $ | 62,909 | ||||||||||||||||||||||||
Residential real estate | 9 | 1 | 1 | 35,210 | 35,221 | |||||||||||||||||||||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | $ | 74,466 | $ | 8,927 | $ | 1,571 | $ | 144 | $ | 85,108 | |||||||||||||||||||||||
Residential real estate loans | Residential real estate loans | 4 | 10 | 1,231 | 42,954 | 44,199 | ||||||||||||||||||||||||||||
Total loans, net of ACL | Total loans, net of ACL | $ | 54,492 | $ | 4,588 | $ | 2,168 | $ | 36,882 | $ | 98,130 | Total loans, net of ACL | $ | 74,470 | $ | 8,937 | $ | 2,802 | $ | 43,098 | $ | 129,307 | ||||||||||||
Lending commitments | Lending commitments | 11,666 | 2,356 | 120 | 253 | 14,395 | Lending commitments | 11,894 | 2,467 | 51 | 282 | 14,694 | ||||||||||||||||||||||
Total exposure | Total exposure | $ | 66,158 | $ | 6,944 | $ | 2,288 | $ | 37,135 | $ | 112,525 | Total exposure | $ | 86,364 | $ | 11,404 | $ | 2,853 | $ | 43,380 | $ | 144,001 |
$ in millions | |||||||
ACL—Loans | $ | ||||||
ACL—Lending commitments | |||||||
Total at December 31, | |||||||
Gross charge-offs | (1) | ||||||
Provision for credit losses | |||||||
Total at | $ | ||||||
ACL—Loans | $ | ||||||
ACL—Lending commitments | |||||||
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Institutional Securities | Institutional Securities | $ | 46,020 | $ | 51,570 | Institutional Securities | $ | 27,177 | $ | 40,545 | ||||||
Wealth Management | Wealth Management | 26,922 | 23,144 | Wealth Management | 29,171 | 30,987 | ||||||||||
Total | Total | $ | 72,942 | $ | 74,714 | Total | $ | 56,348 | $ | 71,532 |
28 | March 2022 Form 10-Q |
Risk Disclosures | ||||||||
Counterparty Credit Rating1 | Counterparty Credit Rating1 | |||||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | AAA | AA | A | BBB | NIG | Total | $ in millions | AAA | AA | A | BBB | NIG | Total | ||||||||||||||||||||||||||
At June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||
At March 31, 2022 | At March 31, 2022 | |||||||||||||||||||||||||||||||||||||||
Less than 1 year | Less than 1 year | $ | 1,344 | $ | 12,729 | $ | 36,065 | $ | 20,945 | $ | 11,900 | $ | 82,983 | Less than 1 year | $ | 2,641 | $ | 19,678 | $ | 44,744 | $ | 37,429 | $ | 17,803 | $ | 122,295 | ||||||||||||||
1-3 years | 1-3 years | 633 | 4,916 | 14,962 | 12,941 | 8,197 | 41,649 | 1-3 years | 850 | 6,623 | 16,964 | 19,316 | 7,979 | 51,732 | ||||||||||||||||||||||||||
3-5 years | 3-5 years | 471 | 4,702 | 8,440 | 8,095 | 3,690 | 25,398 | 3-5 years | 1,109 | 6,317 | 7,749 | 9,729 | 3,497 | 28,401 | ||||||||||||||||||||||||||
Over 5 years | Over 5 years | 4,237 | 26,890 | 66,977 | 48,258 | 10,438 | 156,800 | Over 5 years | 4,366 | 32,016 | 49,904 | 53,086 | 6,223 | 145,595 | ||||||||||||||||||||||||||
Total, gross | Total, gross | $ | 6,685 | $ | 49,237 | $ | 126,444 | $ | 90,239 | $ | 34,225 | $ | 306,830 | Total, gross | $ | 8,966 | $ | 64,634 | $ | 119,361 | $ | 119,560 | $ | 35,502 | $ | 348,023 | ||||||||||||||
Counterparty netting | Counterparty netting | (3,141) | (36,880) | (98,646) | (66,879) | (16,635) | (222,181) | Counterparty netting | (3,982) | (53,118) | (84,229) | (89,891) | (16,705) | (247,925) | ||||||||||||||||||||||||||
Cash and securities collateral | Cash and securities collateral | (3,064) | (8,779) | (22,973) | (17,233) | (8,166) | (60,215) | Cash and securities collateral | (3,552) | (8,765) | (27,333) | (17,907) | (6,675) | (64,232) | ||||||||||||||||||||||||||
Total, net | Total, net | $ | 480 | $ | 3,578 | $ | 4,825 | $ | 6,127 | $ | 9,424 | $ | 24,434 | Total, net | $ | 1,432 | $ | 2,751 | $ | 7,799 | $ | 11,762 | $ | 12,122 | $ | 35,866 |
Counterparty Credit Rating1 | Counterparty Credit Rating1 | |||||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | AAA | AA | A | BBB | NIG | Total | $ in millions | AAA | AA | A | BBB | NIG | Total | ||||||||||||||||||||||||||
At December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
At December 31, 2021 | At December 31, 2021 | |||||||||||||||||||||||||||||||||||||||
Less than 1 year | Less than 1 year | $ | 1,179 | $ | 16,166 | $ | 52,164 | $ | 26,088 | $ | 12,175 | $ | 107,772 | Less than 1 year | $ | 1,561 | $ | 11,088 | $ | 32,069 | $ | 25,680 | $ | 11,924 | $ | 82,322 | ||||||||||||||
1-3 years | 1-3 years | 572 | 5,225 | 17,560 | 13,750 | 8,134 | 45,241 | 1-3 years | 780 | 4,577 | 16,821 | 15,294 | 6,300 | 43,772 | ||||||||||||||||||||||||||
3-5 years | 3-5 years | 359 | 4,326 | 11,328 | 8,363 | 4,488 | 28,864 | 3-5 years | 593 | 4,807 | 6,805 | 8,030 | 3,317 | 23,552 | ||||||||||||||||||||||||||
Over 5 years | Over 5 years | 4,545 | 32,049 | 84,845 | 63,084 | 13,680 | 198,203 | Over 5 years | 4,359 | 26,056 | 61,091 | 44,091 | 4,633 | 140,230 | ||||||||||||||||||||||||||
Total, gross | Total, gross | $ | 6,655 | $ | 57,766 | $ | 165,897 | $ | 111,285 | $ | 38,477 | $ | 380,080 | Total, gross | $ | 7,293 | $ | 46,528 | $ | 116,786 | $ | 93,095 | $ | 26,174 | $ | 289,876 | ||||||||||||||
Counterparty netting | Counterparty netting | (3,269) | (44,306) | (134,310) | (84,171) | (22,227) | (288,283) | Counterparty netting | (3,093) | (36,957) | (91,490) | (68,365) | (11,642) | (211,547) | ||||||||||||||||||||||||||
Cash and securities collateral | Cash and securities collateral | (3,124) | (10,973) | (26,712) | (20,708) | (8,979) | (70,496) | Cash and securities collateral | (3,539) | (7,608) | (20,500) | (17,755) | (5,762) | (55,164) | ||||||||||||||||||||||||||
Total, net | Total, net | $ | 262 | $ | 2,487 | $ | 4,875 | $ | 6,406 | $ | 7,271 | $ | 21,301 | Total, net | $ | 661 | $ | 1,963 | $ | 4,796 | $ | 6,975 | $ | 8,770 | $ | 23,165 |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Industry | Industry | Industry | ||||||||||||||
Financials | Financials | $ | 7,613 | $ | 6,195 | Financials | $ | 10,483 | $ | 5,096 | ||||||
Utilities | Utilities | 4,750 | 3,954 | Utilities | 7,830 | 5,918 | ||||||||||
Consumer discretionary | 2,314 | 1,866 | ||||||||||||||
Energy | Energy | 2,040 | 965 | Energy | 5,785 | 2,587 | ||||||||||
Healthcare | 1,011 | 1,494 | ||||||||||||||
Consumer Discretionary | Consumer Discretionary | 3,185 | 3,069 | |||||||||||||
Regional governments | Regional governments | 1,495 | 963 | |||||||||||||
Industrials | Industrials | 953 | 1,291 | Industrials | 1,259 | 985 | ||||||||||
Information technology | Information technology | 929 | 1,104 | Information technology | 928 | 1,060 | ||||||||||
Regional governments | 843 | 806 | ||||||||||||||
Not-for-profit organizations | 661 | 701 | ||||||||||||||
Real estate | 600 | 378 | ||||||||||||||
Communications services | Communications services | 496 | 529 | Communications services | 852 | 348 | ||||||||||
Insurance | 451 | 518 | ||||||||||||||
Sovereign governments | Sovereign governments | 373 | 650 | Sovereign governments | 659 | 386 | ||||||||||
Healthcare | Healthcare | 632 | 682 | |||||||||||||
Materials | Materials | 329 | 430 | Materials | 575 | 240 | ||||||||||
Consumer staples | Consumer staples | 291 | 339 | Consumer staples | 510 | 324 | ||||||||||
Not-for-profit organizations | Not-for-profit organizations | 411 | 531 | |||||||||||||
Insurance | Insurance | 356 | 174 | |||||||||||||
Real estate | Real estate | 181 | 280 | |||||||||||||
Other | Other | 780 | 81 | Other | 725 | 522 | ||||||||||
Total | Total | $ | 24,434 | $ | 21,301 | Total | $ | 35,866 | $ | 23,165 |
$ in millions | $ in millions | United Kingdom | Japan | Germany | France | Spain | $ in millions | United Kingdom | Germany | Japan | France | India | ||||||||||||||||||||||
Sovereign | Sovereign | Sovereign | ||||||||||||||||||||||||||||||||
Net inventory1 | Net inventory1 | $ | (43) | $ | 5,101 | $ | 54 | $ | (471) | $ | (197) | Net inventory1 | $ | (544) | $ | 1,794 | $ | 3,557 | $ | 320 | $ | 1,946 | ||||||||||||
Net counterparty exposure2 | Net counterparty exposure2 | 1 | 45 | 85 | 6 | 29 | Net counterparty exposure2 | 33 | 170 | 79 | 8 | — | ||||||||||||||||||||||
Exposure before hedges | Exposure before hedges | (42) | 5,146 | 139 | (465) | (168) | Exposure before hedges | (511) | 1,964 | 3,636 | 328 | 1,946 | ||||||||||||||||||||||
Hedges3 | Hedges3 | (310) | (79) | (287) | (6) | — | Hedges3 | (303) | (286) | (113) | (6) | — | ||||||||||||||||||||||
Net exposure | Net exposure | $ | (352) | $ | 5,067 | $ | (148) | $ | (471) | $ | (168) | Net exposure | $ | (814) | $ | 1,678 | $ | 3,523 | $ | 322 | $ | 1,946 | ||||||||||||
Non-sovereign | Non-sovereign | Non-sovereign | ||||||||||||||||||||||||||||||||
Net inventory1 | Net inventory1 | $ | 1,084 | $ | 615 | $ | 7 | $ | (338) | $ | 72 | Net inventory1 | $ | 1,088 | $ | 561 | $ | 873 | $ | 661 | $ | 883 | ||||||||||||
Net counterparty exposure2 | Net counterparty exposure2 | 11,117 | 4,257 | 2,788 | 3,068 | 391 | Net counterparty exposure2 | 17,657 | 3,180 | 4,702 | 3,445 | 1,315 | ||||||||||||||||||||||
Loans | Loans | 3,648 | 381 | 1,725 | 513 | 3,351 | Loans | 3,997 | 1,531 | 426 | 536 | 220 | ||||||||||||||||||||||
Lending commitments | Lending commitments | 6,165 | 180 | 5,979 | 6,118 | 1,313 | Lending commitments | 7,290 | 3,860 | — | 3,220 | 8 | ||||||||||||||||||||||
Exposure before hedges | Exposure before hedges | 22,014 | 5,433 | 10,499 | 9,361 | 5,127 | Exposure before hedges | 30,032 | 9,132 | 6,001 | 7,862 | 2,426 | ||||||||||||||||||||||
Hedges3 | Hedges3 | (1,388) | (162) | (1,015) | (734) | (266) | Hedges3 | (1,824) | (1,350) | (148) | (2,075) | — | ||||||||||||||||||||||
Net exposure | Net exposure | $ | 20,626 | $ | 5,271 | $ | 9,484 | $ | 8,627 | $ | 4,861 | Net exposure | $ | 28,208 | $ | 7,782 | $ | 5,853 | $ | 5,787 | $ | 2,426 | ||||||||||||
Total net exposure | Total net exposure | $ | 20,274 | $ | 10,338 | $ | 9,336 | $ | 8,156 | $ | 4,693 | Total net exposure | $ | 27,394 | $ | 9,460 | $ | 9,376 | $ | 6,109 | $ | 4,372 |
March 2022 Form 10-Q | 29 |
Risk Disclosures |
$ in millions | $ in millions | China | India | Australia | Canada | Brazil | $ in millions | Spain | Canada | Brazil | Netherlands | Ireland | ||||||||||||||||||||||
Sovereign | Sovereign | Sovereign | ||||||||||||||||||||||||||||||||
Net inventory1 | Net inventory1 | $ | (89) | $ | 1,178 | $ | 570 | $ | (447) | $ | 2,115 | Net inventory1 | $ | (102) | $ | 387 | $ | 3,030 | $ | 274 | $ | 147 | ||||||||||||
Net counterparty exposure2 | Net counterparty exposure2 | 102 | 2 | 45 | 21 | — | Net counterparty exposure2 | 55 | 24 | — | — | 6 | ||||||||||||||||||||||
Exposure before hedges | Exposure before hedges | 13 | 1,180 | 615 | (426) | 2,115 | Exposure before hedges | (47) | 411 | 3,030 | 274 | 153 | ||||||||||||||||||||||
Hedges3 | Hedges3 | (82) | — | — | — | (12) | Hedges3 | (8) | — | (135) | (17) | — | ||||||||||||||||||||||
Net exposure | Net exposure | $ | (69) | $ | 1,180 | $ | 615 | $ | (426) | $ | 2,103 | Net exposure | $ | (55) | $ | 411 | $ | 2,895 | $ | 257 | $ | 153 | ||||||||||||
Non-sovereign | Non-sovereign | Non-sovereign | ||||||||||||||||||||||||||||||||
Net inventory1 | Net inventory1 | $ | 1,548 | $ | 850 | $ | 228 | $ | 228 | $ | 233 | Net inventory1 | $ | 337 | $ | 517 | $ | 19 | $ | (15) | $ | 1,053 | ||||||||||||
Net counterparty exposure2 | Net counterparty exposure2 | 780 | 891 | 1,061 | 1,713 | 320 | Net counterparty exposure2 | 1,271 | 1,530 | 488 | 1,319 | 663 | ||||||||||||||||||||||
Loans | Loans | 744 | 235 | 489 | 141 | 188 | Loans | 2,457 | 185 | 294 | 527 | 968 | ||||||||||||||||||||||
Lending commitments | Lending commitments | 1,489 | — | 905 | 1,483 | 183 | Lending commitments | 970 | 1,476 | 224 | 1,843 | 582 | ||||||||||||||||||||||
Exposure before hedges | Exposure before hedges | 4,561 | 1,976 | 2,683 | 3,565 | 924 | Exposure before hedges | 5,035 | 3,708 | 1,025 | 3,674 | 3,266 | ||||||||||||||||||||||
Hedges3 | Hedges3 | (131) | — | (185) | (85) | (25) | Hedges3 | (952) | (108) | (39) | (492) | (4) | ||||||||||||||||||||||
Net exposure | Net exposure | $ | 4,430 | $ | 1,976 | $ | 2,498 | $ | 3,480 | $ | 899 | Net exposure | $ | 4,083 | $ | 3,600 | $ | 986 | $ | 3,182 | $ | 3,262 | ||||||||||||
Total net exposure | Total net exposure | $ | 4,361 | $ | 3,156 | $ | 3,113 | $ | 3,054 | $ | 3,002 | Total net exposure | $ | 4,028 | $ | 4,011 | $ | 3,881 | $ | 3,439 | $ | 3,415 |
$ in millions | At | |||||||
Country of Risk | Collateral2 | |||||||
Germany | $ | |||||||
United Kingdom | U.K., U.S. and Spain | |||||||
Other | Japan, |
/s/ Deloitte & Touche LLP | ||
New York, New York | ||
Consolidated Income (Unaudited) |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
in millions, except per share data | in millions, except per share data | 2021 | 2020 | 2021 | 2020 | in millions, except per share data | 2022 | 2021 | ||||||||||||||||||||
Revenues | Revenues | Revenues | ||||||||||||||||||||||||||
Investment banking | Investment banking | $ | 2,560 | $ | 2,142 | $ | 5,400 | $ | 3,413 | Investment banking | $ | 1,758 | $ | 2,840 | ||||||||||||||
Trading | Trading | 3,330 | 4,803 | 7,555 | 7,604 | Trading | 3,983 | 4,225 | ||||||||||||||||||||
Investments | Investments | 381 | 275 | 699 | 313 | Investments | 75 | 318 | ||||||||||||||||||||
Commissions and fees | Commissions and fees | 1,308 | 1,102 | 2,934 | 2,462 | Commissions and fees | 1,416 | 1,626 | ||||||||||||||||||||
Asset management | Asset management | 4,973 | 3,265 | 9,371 | 6,682 | Asset management | 5,119 | 4,398 | ||||||||||||||||||||
Other | Other | 342 | 473 | 626 | 9 | Other | 234 | 284 | ||||||||||||||||||||
Total non-interest revenues | Total non-interest revenues | 12,894 | 12,060 | 26,585 | 20,483 | Total non-interest revenues | 12,585 | 13,691 | ||||||||||||||||||||
Interest income | Interest income | 2,212 | 2,358 | 4,649 | 5,861 | Interest income | 2,650 | 2,437 | ||||||||||||||||||||
Interest expense | Interest expense | 347 | 758 | 756 | 2,905 | Interest expense | 434 | 409 | ||||||||||||||||||||
Net interest | Net interest | 1,865 | 1,600 | 3,893 | 2,956 | Net interest | 2,216 | 2,028 | ||||||||||||||||||||
Net revenues | Net revenues | 14,759 | 13,660 | 30,478 | 23,439 | Net revenues | 14,801 | 15,719 | ||||||||||||||||||||
Provision for credit losses | Provision for credit losses | 73 | 239 | (25) | 646 | Provision for credit losses | 57 | (98) | ||||||||||||||||||||
Non-interest expenses | Non-interest expenses | Non-interest expenses | ||||||||||||||||||||||||||
Compensation and benefits | Compensation and benefits | 6,423 | 6,035 | 13,221 | 10,318 | Compensation and benefits | 6,274 | 6,798 | ||||||||||||||||||||
Brokerage, clearing and exchange fees | Brokerage, clearing and exchange fees | 795 | 716 | 1,705 | 1,456 | Brokerage, clearing and exchange fees | 882 | 910 | ||||||||||||||||||||
Information processing and communications | Information processing and communications | 765 | 589 | 1,498 | 1,152 | Information processing and communications | 829 | 733 | ||||||||||||||||||||
Professional services | Professional services | 746 | 535 | 1,370 | 984 | Professional services | 705 | 624 | ||||||||||||||||||||
Occupancy and equipment | Occupancy and equipment | 414 | 365 | 819 | 730 | Occupancy and equipment | 427 | 405 | ||||||||||||||||||||
Marketing and business development | Marketing and business development | 146 | 63 | 292 | 195 | Marketing and business development | 175 | 146 | ||||||||||||||||||||
Other | Other | 831 | 763 | 1,688 | 1,457 | Other | 864 | 857 | ||||||||||||||||||||
Total non-interest expenses | Total non-interest expenses | 10,120 | 9,066 | 20,593 | 16,292 | Total non-interest expenses | 10,156 | 10,473 | ||||||||||||||||||||
Income before provision for income taxes | Income before provision for income taxes | 4,566 | 4,355 | 9,910 | 6,501 | Income before provision for income taxes | 4,588 | 5,344 | ||||||||||||||||||||
Provision for income taxes | Provision for income taxes | 1,054 | 1,119 | 2,230 | 1,485 | Provision for income taxes | 873 | 1,176 | ||||||||||||||||||||
Net income | Net income | $ | 3,512 | $ | 3,236 | $ | 7,680 | $ | 5,016 | Net income | $ | 3,715 | $ | 4,168 | ||||||||||||||
Net income applicable to noncontrolling interests | Net income applicable to noncontrolling interests | 1 | 40 | 49 | 122 | Net income applicable to noncontrolling interests | 49 | 48 | ||||||||||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | $ | 3,511 | $ | 3,196 | $ | 7,631 | $ | 4,894 | Net income applicable to Morgan Stanley | $ | 3,666 | $ | 4,120 | ||||||||||||||
Preferred stock dividends | Preferred stock dividends | 103 | 149 | 241 | 257 | Preferred stock dividends | 124 | 138 | ||||||||||||||||||||
Earnings applicable to Morgan Stanley common shareholders | Earnings applicable to Morgan Stanley common shareholders | $ | 3,408 | $ | 3,047 | $ | 7,390 | $ | 4,637 | Earnings applicable to Morgan Stanley common shareholders | $ | 3,542 | $ | 3,982 | ||||||||||||||
Earnings per common share | Earnings per common share | Earnings per common share | ||||||||||||||||||||||||||
Basic | Basic | $ | 1.88 | $ | 1.98 | $ | 4.10 | $ | 3.00 | Basic | $ | 2.04 | $ | 2.22 | ||||||||||||||
Diluted | Diluted | $ | 1.85 | $ | 1.96 | $ | 4.04 | $ | 2.96 | Diluted | $ | 2.02 | $ | 2.19 | ||||||||||||||
Average common shares outstanding | Average common shares outstanding | Average common shares outstanding | ||||||||||||||||||||||||||
Basic | Basic | 1,814 | 1,541 | 1,804 | 1,548 | Basic | 1,733 | 1,795 | ||||||||||||||||||||
Diluted | Diluted | 1,841 | 1,557 | 1,829 | 1,565 | Diluted | 1,755 | 1,818 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||||||||||||
Net income | Net income | $ | 3,512 | $ | 3,236 | $ | 7,680 | $ | 5,016 | Net income | $ | 3,715 | $ | 4,168 | ||||||||||||||
Other comprehensive income (loss), net of tax: | Other comprehensive income (loss), net of tax: | Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||
Foreign currency translation adjustments | Foreign currency translation adjustments | 41 | 21 | (178) | (111) | Foreign currency translation adjustments | (105) | (219) | ||||||||||||||||||||
Change in net unrealized gains (losses) on available-for-sale securities | Change in net unrealized gains (losses) on available-for-sale securities | (7) | 295 | (783) | 1,620 | Change in net unrealized gains (losses) on available-for-sale securities | (2,395) | (776) | ||||||||||||||||||||
Pension and other | Pension and other | 12 | (1) | 17 | 24 | Pension and other | 5 | 5 | ||||||||||||||||||||
Change in net debt valuation adjustment | Change in net debt valuation adjustment | 186 | (2,496) | 323 | 1,307 | Change in net debt valuation adjustment | 660 | 137 | ||||||||||||||||||||
Total other comprehensive income (loss) | Total other comprehensive income (loss) | $ | 232 | $ | (2,181) | $ | (621) | $ | 2,840 | Total other comprehensive income (loss) | $ | (1,835) | $ | (853) | ||||||||||||||
Comprehensive income | Comprehensive income | $ | 3,744 | $ | 1,055 | $ | 7,059 | $ | 7,856 | Comprehensive income | $ | 1,880 | $ | 3,315 | ||||||||||||||
Net income applicable to noncontrolling interests | Net income applicable to noncontrolling interests | 1 | 40 | 49 | 122 | Net income applicable to noncontrolling interests | 49 | 48 | ||||||||||||||||||||
Other comprehensive income (loss) applicable to noncontrolling interests | Other comprehensive income (loss) applicable to noncontrolling interests | 1 | (87) | (60) | 51 | Other comprehensive income (loss) applicable to noncontrolling interests | (35) | (61) | ||||||||||||||||||||
Comprehensive income applicable to Morgan Stanley | Comprehensive income applicable to Morgan Stanley | $ | 3,742 | $ | 1,102 | $ | 7,070 | $ | 7,683 | Comprehensive income applicable to Morgan Stanley | $ | 1,866 | $ | 3,328 |
See Notes to Consolidated Financial Statements |
Consolidated Balance |
$ in millions, except share data | $ in millions, except share data | (Unaudited) At June 30, 2021 | At December 31, 2020 | $ in millions, except share data | (Unaudited) At March 31, 2022 | At December 31, 2021 | ||||||||||
Assets | Assets | Assets | ||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 126,480 | $ | 105,654 | Cash and cash equivalents | $ | 136,086 | $ | 127,725 | ||||||
Trading assets at fair value ($108,288 and $132,578 were pledged to various parties) | 321,145 | 312,738 | ||||||||||||||
Investment securities (includes $93,222 and $110,383 at fair value) | 175,342 | 182,154 | ||||||||||||||
Securities purchased under agreements to resell (includes $10 and $15 at fair value) | 95,930 | 116,234 | ||||||||||||||
Trading assets at fair value ($107,196 and $104,186 were pledged to various parties) | Trading assets at fair value ($107,196 and $104,186 were pledged to various parties) | 296,881 | 294,869 | |||||||||||||
Investment securities (includes $90,354 and $102,830 at fair value) | Investment securities (includes $90,354 and $102,830 at fair value) | 170,793 | 182,998 | |||||||||||||
Securities purchased under agreements to resell (includes $2 and $7 at fair value) | Securities purchased under agreements to resell (includes $2 and $7 at fair value) | 127,767 | 119,999 | |||||||||||||
Securities borrowed | Securities borrowed | 126,703 | 112,391 | Securities borrowed | 150,995 | 129,713 | ||||||||||
Customer and other receivables | Customer and other receivables | 100,921 | 97,737 | Customer and other receivables | 94,804 | 96,018 | ||||||||||
Loans: | Loans: | Loans: | ||||||||||||||
Held for investment (net of allowance for credit losses of $687 and $835) | 154,346 | 137,784 | ||||||||||||||
Held for investment (net of allowance for credit losses of $679 and $654) | Held for investment (net of allowance for credit losses of $679 and $654) | 182,247 | 174,302 | |||||||||||||
Held for sale | Held for sale | 11,713 | 12,813 | Held for sale | 14,013 | 13,832 | ||||||||||
Goodwill | Goodwill | 16,838 | 11,635 | Goodwill | 16,825 | 16,833 | ||||||||||
Intangible assets (net of accumulated amortization of $3,518 and $3,265) | 8,690 | 4,980 | ||||||||||||||
Intangible assets (net of accumulated amortization of $3,972 and $3,819) | Intangible assets (net of accumulated amortization of $3,972 and $3,819) | 8,244 | 8,360 | |||||||||||||
Other assets | Other assets | 23,697 | 21,742 | Other assets | 23,578 | 23,491 | ||||||||||
Total assets | Total assets | $ | 1,161,805 | $ | 1,115,862 | Total assets | $ | 1,222,233 | $ | 1,188,140 | ||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||
Deposits (includes $2,672 and $3,521 at fair value) | $ | 320,358 | $ | 310,782 | ||||||||||||
Deposits (includes $2,013 and $1,940 at fair value) | Deposits (includes $2,013 and $1,940 at fair value) | $ | 360,840 | $ | 347,574 | |||||||||||
Trading liabilities at fair value | Trading liabilities at fair value | 169,074 | 157,631 | Trading liabilities at fair value | 176,580 | 158,328 | ||||||||||
Securities sold under agreements to repurchase (includes $1,028 and $1,115 at fair value) | 57,645 | 50,587 | ||||||||||||||
Securities sold under agreements to repurchase (includes $964 and $791 at fair value) | Securities sold under agreements to repurchase (includes $964 and $791 at fair value) | 60,068 | 62,188 | |||||||||||||
Securities loaned | Securities loaned | 9,574 | 7,731 | Securities loaned | 14,222 | 12,299 | ||||||||||
Other secured financings (includes $6,574 and $11,701 at fair value) | 11,232 | 15,863 | ||||||||||||||
Other secured financings (includes $4,751 and $5,133 at fair value) | Other secured financings (includes $4,751 and $5,133 at fair value) | 8,808 | 10,041 | |||||||||||||
Customer and other payables | Customer and other payables | 233,810 | 227,437 | Customer and other payables | 243,609 | 228,685 | ||||||||||
Other liabilities and accrued expenses | Other liabilities and accrued expenses | 27,808 | 25,603 | Other liabilities and accrued expenses | 24,214 | 29,300 | ||||||||||
Borrowings (includes $75,508 and $73,701 at fair value) | 224,142 | 217,079 | ||||||||||||||
Borrowings (includes $75,963 and $76,340 at fair value) | Borrowings (includes $75,963 and $76,340 at fair value) | 229,817 | 233,127 | |||||||||||||
Total liabilities | Total liabilities | 1,053,643 | 1,012,713 | Total liabilities | 1,118,158 | 1,081,542 | ||||||||||
Commitments and contingent liabilities (see Note 14) | ||||||||||||||||
Commitments and contingent liabilities (see Note 13) | Commitments and contingent liabilities (see Note 13) | |||||||||||||||
0Equity | 0Equity | 0Equity | ||||||||||||||
Morgan Stanley shareholders’ equity: | Morgan Stanley shareholders’ equity: | Morgan Stanley shareholders’ equity: | ||||||||||||||
Preferred stock | Preferred stock | 7,750 | 9,250 | Preferred stock | 7,750 | 7,750 | ||||||||||
Common stock, $0.01 par value: | Common stock, $0.01 par value: | Common stock, $0.01 par value: | ||||||||||||||
Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,834,370,291 and 1,809,624,144 | 20 | 20 | ||||||||||||||
Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,756,153,374 and 1,772,226,530 | Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,756,153,374 and 1,772,226,530 | 20 | 20 | |||||||||||||
Additional paid-in capital | Additional paid-in capital | 28,030 | 25,546 | Additional paid-in capital | 28,007 | 28,841 | ||||||||||
Retained earnings | Retained earnings | 84,791 | 78,694 | Retained earnings | 91,722 | 89,432 | ||||||||||
Employee stock trusts | Employee stock trusts | 3,768 | 3,043 | Employee stock trusts | 4,975 | 3,955 | ||||||||||
Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) | (2,523) | (1,962) | Accumulated other comprehensive income (loss) | (4,902) | (3,102) | ||||||||||
Common stock held in treasury at cost, $0.01 par value (204,523,688 and 229,269,835 shares) | (11,198) | (9,767) | ||||||||||||||
Common stock held in treasury at cost, $0.01 par value (282,740,605 and 266,667,449 shares) | Common stock held in treasury at cost, $0.01 par value (282,740,605 and 266,667,449 shares) | (19,696) | (17,500) | |||||||||||||
Common stock issued to employee stock trusts | Common stock issued to employee stock trusts | (3,768) | (3,043) | Common stock issued to employee stock trusts | (4,975) | (3,955) | ||||||||||
Total Morgan Stanley shareholders’ equity | Total Morgan Stanley shareholders’ equity | 106,870 | 101,781 | Total Morgan Stanley shareholders’ equity | 102,901 | 105,441 | ||||||||||
Noncontrolling interests | Noncontrolling interests | 1,292 | 1,368 | Noncontrolling interests | 1,174 | 1,157 | ||||||||||
Total equity | Total equity | 108,162 | 103,149 | Total equity | 104,075 | 106,598 | ||||||||||
Total liabilities and equity | Total liabilities and equity | $ | 1,161,805 | $ | 1,115,862 | Total liabilities and equity | $ | 1,222,233 | $ | 1,188,140 |
See Notes to Consolidated Financial Statements |
Consolidated (Unaudited) |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||||||||||||
Preferred Stock | Preferred Stock | Preferred Stock | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 7,750 | $ | 8,520 | $ | 9,250 | $ | 8,520 | Beginning balance | $ | 7,750 | $ | 9,250 | ||||||||||||||
Redemption of Series J preferred stock | — | — | (1,500) | — | ||||||||||||||||||||||||
Redemption of preferred stock | Redemption of preferred stock | — | (1,500) | |||||||||||||||||||||||||
Ending balance | Ending balance | 7,750 | 8,520 | 7,750 | 8,520 | Ending balance | 7,750 | 7,750 | ||||||||||||||||||||
Common Stock | Common Stock | Common Stock | ||||||||||||||||||||||||||
Beginning and ending balance | Beginning and ending balance | 20 | 20 | 20 | 20 | Beginning and ending balance | 20 | 20 | ||||||||||||||||||||
Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | 27,406 | 23,428 | 25,546 | 23,935 | Beginning balance | 28,841 | 25,546 | ||||||||||||||||||||
Share-based award activity | Share-based award activity | 624 | 354 | 292 | (153) | Share-based award activity | (834) | (332) | ||||||||||||||||||||
Issuance of common stock for the acquisition of Eaton Vance | Issuance of common stock for the acquisition of Eaton Vance | — | — | 2,185 | — | Issuance of common stock for the acquisition of Eaton Vance | — | 2,185 | ||||||||||||||||||||
Other net increases (decreases) | Other net increases (decreases) | — | — | 7 | — | Other net increases (decreases) | — | 7 | ||||||||||||||||||||
Ending balance | Ending balance | 28,030 | 23,782 | 28,030 | 23,782 | Ending balance | 28,007 | 27,406 | ||||||||||||||||||||
Retained Earnings | Retained Earnings | Retained Earnings | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | 82,034 | 71,518 | 78,694 | 70,589 | Beginning balance | 89,432 | 78,694 | ||||||||||||||||||||
Cumulative adjustment related to the adoption of financial instruments-credit losses accounting update1 | 0 | 0 | 0 | (100) | ||||||||||||||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | 3,511 | 3,196 | 7,631 | 4,894 | Net income applicable to Morgan Stanley | 3,666 | 4,120 | ||||||||||||||||||||
Preferred stock dividends2 | (103) | (149) | (241) | (257) | ||||||||||||||||||||||||
Common stock dividends2 | (651) | (550) | (1,286) | (1,111) | ||||||||||||||||||||||||
Preferred stock dividends1 | Preferred stock dividends1 | (124) | (138) | |||||||||||||||||||||||||
Common stock dividends1 | Common stock dividends1 | (1,252) | (635) | |||||||||||||||||||||||||
Other net increases (decreases) | Other net increases (decreases) | — | — | (7) | — | Other net increases (decreases) | — | (7) | ||||||||||||||||||||
Ending balance | Ending balance | 84,791 | 74,015 | 84,791 | 74,015 | Ending balance | 91,722 | 82,034 | ||||||||||||||||||||
Employee Stock Trusts | Employee Stock Trusts | Employee Stock Trusts | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | 3,861 | 3,088 | 3,043 | 2,918 | Beginning balance | 3,955 | 3,043 | ||||||||||||||||||||
Share-based award activity | Share-based award activity | (93) | (70) | 725 | 100 | Share-based award activity | 1,020 | 818 | ||||||||||||||||||||
Ending balance | Ending balance | 3,768 | 3,018 | 3,768 | 3,018 | Ending balance | 4,975 | 3,861 | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | (2,754) | 2,095 | (1,962) | (2,788) | Beginning balance | (3,102) | (1,962) | ||||||||||||||||||||
Net change in Accumulated other comprehensive income (loss) | Net change in Accumulated other comprehensive income (loss) | 231 | (2,094) | (561) | 2,789 | Net change in Accumulated other comprehensive income (loss) | (1,800) | (792) | ||||||||||||||||||||
Ending balance | Ending balance | (2,523) | 1 | (2,523) | 1 | Ending balance | (4,902) | (2,754) | ||||||||||||||||||||
Common Stock Held in Treasury at Cost | Common Stock Held in Treasury at Cost | Common Stock Held in Treasury at Cost | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | (8,197) | (19,721) | (9,767) | (18,727) | Beginning balance | (17,500) | (9,767) | ||||||||||||||||||||
Share-based award activity | Share-based award activity | 17 | 56 | 1,037 | 844 | Share-based award activity | 1,485 | 1,020 | ||||||||||||||||||||
Repurchases of common stock and employee tax withholdings | Repurchases of common stock and employee tax withholdings | (3,018) | (28) | (5,600) | (1,810) | Repurchases of common stock and employee tax withholdings | (3,681) | (2,582) | ||||||||||||||||||||
Issuance of common stock for the acquisition of Eaton Vance | Issuance of common stock for the acquisition of Eaton Vance | — | — | 3,132 | — | Issuance of common stock for the acquisition of Eaton Vance | — | 3,132 | ||||||||||||||||||||
Ending balance | Ending balance | (11,198) | (19,693) | (11,198) | (19,693) | Ending balance | (19,696) | (8,197) | ||||||||||||||||||||
Common Stock Issued to Employee Stock Trusts | Common Stock Issued to Employee Stock Trusts | Common Stock Issued to Employee Stock Trusts | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | (3,861) | (3,088) | (3,043) | (2,918) | Beginning balance | (3,955) | (3,043) | ||||||||||||||||||||
Share-based award activity | Share-based award activity | 93 | 70 | (725) | (100) | Share-based award activity | (1,020) | (818) | ||||||||||||||||||||
Ending balance | Ending balance | (3,768) | (3,018) | (3,768) | (3,018) | Ending balance | (4,975) | (3,861) | ||||||||||||||||||||
Noncontrolling Interests | Noncontrolling Interests | Noncontrolling Interests | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | 1,329 | 1,368 | 1,368 | 1,148 | Beginning balance | 1,157 | 1,368 | ||||||||||||||||||||
Net income applicable to noncontrolling interests | Net income applicable to noncontrolling interests | 1 | 40 | 49 | 122 | Net income applicable to noncontrolling interests | 49 | 48 | ||||||||||||||||||||
Net change in Accumulated other comprehensive income (loss) applicable to noncontrolling interests | Net change in Accumulated other comprehensive income (loss) applicable to noncontrolling interests | 1 | (87) | (60) | 51 | Net change in Accumulated other comprehensive income (loss) applicable to noncontrolling interests | (35) | (61) | ||||||||||||||||||||
Other net increases (decreases) | Other net increases (decreases) | (39) | 43 | (65) | 43 | Other net increases (decreases) | 3 | (26) | ||||||||||||||||||||
Ending balance | Ending balance | 1,292 | 1,364 | 1,292 | 1,364 | Ending balance | 1,174 | 1,329 | ||||||||||||||||||||
Total Equity | Total Equity | $ | 108,162 | $ | 88,009 | $ | 108,162 | $ | 88,009 | Total Equity | $ | 104,075 | $ | 107,588 |
See Notes to Consolidated Financial Statements |
Consolidated Cash Flow (Unaudited) |
Six Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||
Cash flows from operating activities | Cash flows from operating activities | Cash flows from operating activities | ||||||||||||||
Net income | Net income | $ | 7,680 | $ | 5,016 | Net income | $ | 3,715 | $ | 4,168 | ||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | Adjustments to reconcile net income to net cash provided by (used for) operating activities: | Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||||||||
Stock-based compensation expense | Stock-based compensation expense | 1,136 | 548 | Stock-based compensation expense | 431 | 518 | ||||||||||
Depreciation and amortization | Depreciation and amortization | 1,944 | 1,510 | Depreciation and amortization | 942 | 887 | ||||||||||
Provision for credit losses | Provision for credit losses | (25) | 646 | Provision for credit losses | 57 | (98) | ||||||||||
Other operating adjustments | Other operating adjustments | (165) | 599 | Other operating adjustments | 51 | (95) | ||||||||||
Changes in assets and liabilities: | Changes in assets and liabilities: | Changes in assets and liabilities: | ||||||||||||||
Trading assets, net of Trading liabilities | Trading assets, net of Trading liabilities | (1,526) | 17,539 | Trading assets, net of Trading liabilities | 5,069 | 20,463 | ||||||||||
Securities borrowed | Securities borrowed | (14,312) | (285) | Securities borrowed | (21,282) | 10,242 | ||||||||||
Securities loaned | Securities loaned | 1,843 | 1,987 | Securities loaned | 1,923 | 695 | ||||||||||
Customer and other receivables and other assets | Customer and other receivables and other assets | (2,360) | (7,789) | Customer and other receivables and other assets | 1,227 | (18,721) | ||||||||||
Customer and other payables and other liabilities | Customer and other payables and other liabilities | 9,917 | (1,005) | Customer and other payables and other liabilities | 17,994 | 3,270 | ||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | 20,304 | (8,388) | Securities purchased under agreements to resell | (7,768) | 1,513 | ||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | 7,058 | (3,352) | Securities sold under agreements to repurchase | (2,120) | 4,037 | ||||||||||
Net cash provided by (used for) operating activities | Net cash provided by (used for) operating activities | 31,494 | 7,026 | Net cash provided by (used for) operating activities | 239 | 26,879 | ||||||||||
Cash flows from investing activities | Cash flows from investing activities | Cash flows from investing activities | ||||||||||||||
Proceeds from (payments for): | Proceeds from (payments for): | Proceeds from (payments for): | ||||||||||||||
Other assets—Premises, equipment and software, net | Other assets—Premises, equipment and software, net | (1,039) | (782) | Other assets—Premises, equipment and software, net | (652) | (525) | ||||||||||
Changes in loans, net | Changes in loans, net | (17,426) | (8,700) | Changes in loans, net | (7,479) | (6,474) | ||||||||||
Investment securities: | Investment securities: | Investment securities: | ||||||||||||||
Purchases | Purchases | (40,125) | (33,195) | Purchases | (17,459) | (32,333) | ||||||||||
Proceeds from sales | Proceeds from sales | 17,546 | 3,581 | Proceeds from sales | 18,469 | 6,825 | ||||||||||
Proceeds from paydowns and maturities | Proceeds from paydowns and maturities | 24,479 | 5,616 | Proceeds from paydowns and maturities | 7,403 | 12,638 | ||||||||||
Cash paid as part of the Eaton Vance acquisition, net of cash acquired | Cash paid as part of the Eaton Vance acquisition, net of cash acquired | (2,648) | 0 | Cash paid as part of the Eaton Vance acquisition, net of cash acquired | — | (2,648) | ||||||||||
Other investing activities | Other investing activities | (231) | (138) | Other investing activities | (124) | (44) | ||||||||||
Net cash provided by (used for) investing activities | Net cash provided by (used for) investing activities | (19,444) | (33,618) | Net cash provided by (used for) investing activities | 158 | (22,561) | ||||||||||
Cash flows from financing activities | Cash flows from financing activities | Cash flows from financing activities | ||||||||||||||
Net proceeds from (payments for): | Net proceeds from (payments for): | Net proceeds from (payments for): | ||||||||||||||
Other secured financings | Other secured financings | (1,107) | 332 | Other secured financings | (636) | (3,798) | ||||||||||
Deposits | Deposits | 9,643 | 46,287 | Deposits | 5,834 | 12,391 | ||||||||||
Proceeds from issuance of Borrowings | Proceeds from issuance of Borrowings | 49,100 | 32,914 | Proceeds from issuance of Borrowings | 20,284 | 24,112 | ||||||||||
Payments for: | Payments for: | Payments for: | ||||||||||||||
Borrowings | Borrowings | (40,300) | (24,632) | Borrowings | (11,094) | (19,774) | ||||||||||
Repurchases of common stock and employee tax withholdings | Repurchases of common stock and employee tax withholdings | (5,600) | (1,810) | Repurchases of common stock and employee tax withholdings | (3,681) | (2,582) | ||||||||||
Cash dividends | Cash dividends | (1,501) | (1,328) | Cash dividends | (1,314) | (755) | ||||||||||
Other financing activities | Other financing activities | (186) | (164) | Other financing activities | (102) | (30) | ||||||||||
Net cash provided by (used for) financing activities | Net cash provided by (used for) financing activities | 10,049 | 51,599 | Net cash provided by (used for) financing activities | 9,291 | 9,564 | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | Effect of exchange rate changes on cash and cash equivalents | (1,273) | (902) | Effect of exchange rate changes on cash and cash equivalents | (1,327) | (1,418) | ||||||||||
Net increase (decrease) in cash and cash equivalents | Net increase (decrease) in cash and cash equivalents | 20,826 | 24,105 | Net increase (decrease) in cash and cash equivalents | 8,361 | 12,464 | ||||||||||
Cash and cash equivalents, at beginning of period | Cash and cash equivalents, at beginning of period | 105,654 | 82,171 | Cash and cash equivalents, at beginning of period | 127,725 | 105,654 | ||||||||||
Cash and cash equivalents, at end of period | Cash and cash equivalents, at end of period | $ | 126,480 | $ | 106,276 | Cash and cash equivalents, at end of period | $ | 136,086 | $ | 118,118 | ||||||
Supplemental Disclosure of Cash Flow Information | Supplemental Disclosure of Cash Flow Information | Supplemental Disclosure of Cash Flow Information | ||||||||||||||
Cash payments for: | Cash payments for: | Cash payments for: | ||||||||||||||
Interest | Interest | $ | 881 | $ | 2,742 | Interest | $ | 623 | $ | 586 | ||||||
Income taxes, net of refunds | Income taxes, net of refunds | 2,033 | 679 | Income taxes, net of refunds | 383 | 339 |
See Notes to Consolidated Financial Statements |
Notes to Consolidated Financial Statements (Unaudited) |
Notes to Consolidated Financial Statements (Unaudited) |
$ in millions | At March 31, 2022 | At December 31, 2021 | ||||||
Cash and due from banks | $ | 9,086 | $ | 8,394 | ||||
Interest bearing deposits with banks | 127,000 | 119,331 | ||||||
Total Cash and cash equivalents | $ | 136,086 | $ | 127,725 | ||||
Restricted cash | $ | 41,315 | $ | 40,887 |
At March 31, 2022 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Assets at fair value | |||||||||||||||||
Trading assets: | |||||||||||||||||
U.S. Treasury and agency securities | $ | 44,038 | $ | 19,680 | $ | 8 | $ | — | $ | 63,726 | |||||||
Other sovereign government obligations | 24,449 | 7,422 | 188 | — | 32,059 | ||||||||||||
State and municipal securities | — | 1,664 | — | — | 1,664 | ||||||||||||
MABS | — | 929 | 351 | — | 1,280 | ||||||||||||
Loans and lending commitments2 | — | 9,349 | 3,141 | — | 12,490 | ||||||||||||
Corporate and other debt | — | 28,751 | 1,753 | — | 30,504 | ||||||||||||
Corporate equities3 | 86,106 | 790 | 239 | — | 87,135 | ||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate | 10,124 | 163,417 | 1,086 | — | 174,627 | ||||||||||||
Credit | — | 10,860 | 646 | — | 11,506 | ||||||||||||
Foreign exchange | 39 | 101,193 | 63 | — | 101,295 | ||||||||||||
Equity | 997 | 64,521 | 391 | — | 65,909 | ||||||||||||
Commodity and other | 12,202 | 33,688 | 3,416 | — | 49,306 | ||||||||||||
Netting1 | (17,166) | (271,135) | (993) | (55,468) | (344,762) | ||||||||||||
Total derivative and other contracts | 6,196 | 102,544 | 4,609 | (55,468) | 57,881 | ||||||||||||
Investments4 | 661 | 761 | 1,120 | — | 2,542 | ||||||||||||
Physical commodities | — | 2,709 | — | — | 2,709 | ||||||||||||
Total trading assets4 | 161,450 | 174,599 | 11,409 | (55,468) | 291,990 | ||||||||||||
Investment securities—AFS | 56,479 | 33,875 | — | — | 90,354 | ||||||||||||
Securities purchased under agreements to resell | — | 2 | — | — | 2 | ||||||||||||
Total assets at fair value | $ | 217,929 | $ | 208,476 | $ | 11,409 | $ | (55,468) | $ | 382,346 |
At March 31, 2022 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Liabilities at fair value | |||||||||||||||||
Deposits | $ | — | $ | 1,987 | $ | 26 | $ | — | $ | 2,013 | |||||||
Trading liabilities: | |||||||||||||||||
U.S. Treasury and agency securities | 15,090 | 112 | — | — | 15,202 | ||||||||||||
Other sovereign government obligations | 24,751 | 2,911 | 2 | — | 27,664 | ||||||||||||
Corporate and other debt | — | 11,081 | 17 | — | 11,098 | ||||||||||||
Corporate equities3 | 80,037 | 191 | 29 | — | 80,257 | ||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate | 9,127 | 155,763 | 452 | — | 165,342 | ||||||||||||
Credit | — | 10,949 | 553 | — | 11,502 | ||||||||||||
Foreign exchange | 31 | 93,168 | 96 | — | 93,295 | ||||||||||||
Equity | 1,184 | 71,669 | 1,045 | — | 73,898 | ||||||||||||
Commodity and other | 12,716 | 28,140 | 1,982 | — | 42,838 | ||||||||||||
Netting1 | (17,166) | (271,135) | (993) | (55,224) | (344,518) | ||||||||||||
Total derivative and other contracts | 5,892 | 88,554 | 3,135 | (55,224) | 42,357 | ||||||||||||
Total trading liabilities | 125,770 | 102,849 | 3,183 | (55,224) | 176,578 | ||||||||||||
Securities sold under agreements to repurchase | — | 448 | 516 | — | 964 | ||||||||||||
Other secured financings | — | 4,631 | 120 | — | 4,751 | ||||||||||||
Borrowings | — | 73,564 | 2,399 | — | 75,963 | ||||||||||||
Total liabilities at fair value | $ | 125,770 | $ | 183,479 | $ | 6,244 | $ | (55,224) | $ | 260,269 |
March 1, 2021 | |||||
$ in millions | Weighted average life (years) | At March 1, 2021 | ||||||
Non-amortizable | ||||||||
Management contracts | indefinite | $ | 2,120 | |||||
Amortizable | ||||||||
Customer relationships | 16 | 1,455 | ||||||
Tradenames | 23 | 221 | ||||||
Management contracts | 16 | 160 | ||||||
Total acquired Intangible assets | $ | 3,956 |
$ in millions | Three Months Ended June 30, 2021 | Six Months Ended June 30, 20211 | ||||||
Net revenues | $ | 535 | $ | 709 | ||||
Net income | 119 | 150 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
$ in millions | 20211 | 2020 | 2021 | 2020 | ||||||||||
Net revenues | $ | 14,759 | $ | 14,076 | $ | 30,774 | $ | 24,241 | ||||||
Net income | 3,512 | 3,282 | 7,780 | 4,691 |
At December 31, 2021 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Assets at fair value | |||||||||||||||||
Trading assets: | |||||||||||||||||
U.S. Treasury and agency securities | $ | 45,970 | $ | 29,749 | $ | 2 | $ | — | $ | 75,721 | |||||||
Other sovereign government obligations | 28,041 | 4,533 | 211 | — | 32,785 | ||||||||||||
State and municipal securities | — | 1,905 | 13 | — | 1,918 | ||||||||||||
MABS | — | 1,237 | 344 | — | 1,581 | ||||||||||||
Loans and lending commitments2 | — | 8,821 | 3,806 | — | 12,627 | ||||||||||||
Corporate and other debt | — | 27,309 | 1,973 | — | 29,282 | ||||||||||||
Corporate equities3 | 91,630 | 832 | 115 | — | 92,577 | ||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate | 1,364 | 153,048 | 1,153 | — | 155,565 | ||||||||||||
Credit | — | 8,441 | 509 | — | 8,950 | ||||||||||||
Foreign exchange | 28 | 74,571 | 132 | — | 74,731 | ||||||||||||
Equity | 1,562 | 68,519 | 251 | — | 70,332 | ||||||||||||
Commodity and other | 4,462 | 20,194 | 3,057 | — | 27,713 | ||||||||||||
Netting1 | (5,696) | (241,814) | (794) | (50,833) | (299,137) | ||||||||||||
Total derivative and other contracts | 1,720 | 82,959 | 4,308 | (50,833) | 38,154 | ||||||||||||
Investments4 | 735 | 846 | 1,125 | — | 2,706 | ||||||||||||
Physical commodities | — | 2,771 | — | — | 2,771 | ||||||||||||
Total trading assets4 | 168,096 | 160,962 | 11,897 | (50,833) | 290,122 | ||||||||||||
Investment securities—AFS | 59,021 | 43,809 | — | — | 102,830 | ||||||||||||
Securities purchased under agreements to resell | — | 7 | — | — | 7 | ||||||||||||
Total assets at fair value | $ | 227,117 | $ | 204,778 | $ | 11,897 | $ | (50,833) | $ | 392,959 |
Notes to Consolidated Financial Statements (Unaudited) |
$ in millions | At June 30, 2021 | At December 31, 2020 | ||||||
Cash and due from banks | $ | 8,943 | $ | 9,792 | ||||
Interest bearing deposits with banks | 117,537 | 95,862 | ||||||
Total Cash and cash equivalents | $ | 126,480 | $ | 105,654 | ||||
Restricted cash | $ | 41,203 | $ | 38,202 |
At June 30, 2021 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Assets at fair value | |||||||||||||||||
Trading assets: | |||||||||||||||||
U.S. Treasury and agency securities | $ | 48,097 | $ | 28,134 | $ | 25 | $ | — | $ | 76,256 | |||||||
Other sovereign government obligations | 32,496 | 5,020 | 78 | — | 37,594 | ||||||||||||
State and municipal securities | 0 | 2,002 | 4 | — | 2,006 | ||||||||||||
MABS | 0 | 1,424 | 357 | — | 1,781 | ||||||||||||
Loans and lending commitments2 | 0 | 10,249 | 4,896 | — | 15,145 | ||||||||||||
Corporate and other debt | 0 | 31,781 | 1,801 | — | 33,582 | ||||||||||||
Corporate equities3 | 104,834 | 508 | 150 | — | 105,492 | ||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate | 1,805 | 174,122 | 1,241 | — | 177,168 | ||||||||||||
Credit | 0 | 7,673 | 636 | — | 8,309 | ||||||||||||
Foreign exchange | 41 | 70,710 | 95 | — | 70,846 | ||||||||||||
Equity | 1,051 | 68,919 | 387 | — | 70,357 | ||||||||||||
Commodity and other | 4,932 | 17,576 | 2,557 | — | 25,065 | ||||||||||||
Netting1 | (6,406) | (250,928) | (975) | (52,481) | (310,790) | ||||||||||||
Total derivative and other contracts | 1,423 | 88,072 | 3,941 | (52,481) | 40,955 | ||||||||||||
Investments4 | 638 | 571 | 978 | — | 2,187 | ||||||||||||
Physical commodities | 0 | 2,106 | 0 | — | 2,106 | ||||||||||||
Total trading assets4 | 187,488 | 169,867 | 12,230 | (52,481) | 317,104 | ||||||||||||
Investment securities—AFS | 46,234 | 46,988 | 0 | — | 93,222 | ||||||||||||
Securities purchased under agreements to resell | 0 | 10 | 0 | — | 10 | ||||||||||||
Total assets at fair value | $ | 233,722 | $ | 216,865 | $ | 12,230 | $ | (52,481) | $ | 410,336 |
At June 30, 2021 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Liabilities at fair value | |||||||||||||||||
Deposits | $ | 0 | $ | 2,586 | $ | 86 | $ | — | $ | 2,672 | |||||||
Trading liabilities: | |||||||||||||||||
U.S. Treasury and agency securities | 14,504 | 377 | 0 | — | 14,881 | ||||||||||||
Other sovereign government obligations | 27,980 | 2,030 | 0 | — | 30,010 | ||||||||||||
Corporate and other debt | 0 | 12,367 | 9 | — | 12,376 | ||||||||||||
Corporate equities3 | 73,195 | 471 | 50 | — | 73,716 | ||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate | 1,855 | 158,946 | 573 | — | 161,374 | ||||||||||||
Credit | 0 | 8,354 | 839 | — | 9,193 | ||||||||||||
Foreign exchange | 32 | 66,144 | 62 | — | 66,238 | ||||||||||||
Equity | 1,274 | 79,795 | 1,224 | — | 82,293 | ||||||||||||
Commodity and other | 4,750 | 16,103 | 1,127 | — | 21,980 | ||||||||||||
Netting1 | (6,406) | (250,928) | (975) | (44,678) | (302,987) | ||||||||||||
Total derivative and other contracts | 1,505 | 78,414 | 2,850 | (44,678) | 38,091 | ||||||||||||
Total trading liabilities | 117,184 | 93,659 | 2,909 | (44,678) | 169,074 | ||||||||||||
Securities sold under agreements to repurchase | 0 | 579 | 449 | — | 1,028 | ||||||||||||
Other secured financings | 0 | 6,173 | 401 | — | 6,574 | ||||||||||||
Borrowings | 0 | 73,533 | 1,975 | — | 75,508 | ||||||||||||
Total liabilities at fair value | $ | 117,184 | $ | 176,530 | $ | 5,820 | $ | (44,678) | $ | 254,856 |
At December 31, 2020 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Assets at fair value | |||||||||||||||||
Trading assets: | |||||||||||||||||
U.S. Treasury and agency securities | $ | 43,084 | $ | 31,524 | $ | 9 | $ | — | $ | 74,617 | |||||||
Other sovereign government obligations | 26,174 | 5,048 | 268 | — | 31,490 | ||||||||||||
State and municipal securities | 0 | 1,135 | 0 | — | 1,135 | ||||||||||||
MABS | 0 | 1,070 | 322 | — | 1,392 | ||||||||||||
Loans and lending commitments2 | 0 | 5,389 | 5,759 | — | 11,148 | ||||||||||||
Corporate and other debt | 0 | 30,093 | 3,435 | — | 33,528 | ||||||||||||
Corporate equities3 | 111,575 | 1,142 | 86 | — | 112,803 | ||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate | 4,458 | 227,818 | 1,210 | — | 233,486 | ||||||||||||
Credit | 0 | 6,840 | 701 | — | 7,541 | ||||||||||||
Foreign exchange | 29 | 93,770 | 260 | — | 94,059 | ||||||||||||
Equity | 1,132 | 65,943 | 1,369 | — | 68,444 | ||||||||||||
Commodity and other | 1,818 | 10,108 | 2,723 | — | 14,649 | ||||||||||||
Netting1 | (5,488) | (310,534) | (1,351) | (62,956) | (380,329) | ||||||||||||
Total derivative and other contracts | 1,949 | 93,945 | 4,912 | (62,956) | 37,850 | ||||||||||||
Investments4 | 624 | 234 | 828 | — | 1,686 | ||||||||||||
Physical commodities | 0 | 3,260 | 0 | — | 3,260 | ||||||||||||
Total trading assets4 | 183,406 | 172,840 | 15,619 | (62,956) | 308,909 | ||||||||||||
Investment securities—AFS | 46,354 | 61,225 | 2,804 | — | 110,383 | ||||||||||||
Securities purchased under agreements to resell | 0 | 12 | 3 | — | 15 | ||||||||||||
Total assets at fair value | $ | 229,760 | $ | 234,077 | $ | 18,426 | $ | (62,956) | $ | 419,307 |
(Unaudited) |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | $ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||||||||||||
Liabilities at fair value | Liabilities at fair value | Liabilities at fair value | ||||||||||||||||||||||||||||||||
Deposits | Deposits | $ | 0 | $ | 3,395 | $ | 126 | $ | — | $ | 3,521 | Deposits | $ | — | $ | 1,873 | $ | 67 | $ | — | $ | 1,940 | ||||||||||||
Trading liabilities: | Trading liabilities: | Trading liabilities: | ||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | U.S. Treasury and agency securities | 10,204 | 1 | 0 | — | 10,205 | U.S. Treasury and agency securities | 16,433 | 319 | — | — | 16,752 | ||||||||||||||||||||||
Other sovereign government obligations | Other sovereign government obligations | 24,209 | 1,738 | 16 | — | 25,963 | Other sovereign government obligations | 20,771 | 2,062 | — | — | 22,833 | ||||||||||||||||||||||
Corporate and other debt | Corporate and other debt | 0 | 8,468 | 0 | — | 8,468 | Corporate and other debt | — | 8,707 | 16 | — | 8,723 | ||||||||||||||||||||||
Corporate equities3 | Corporate equities3 | 67,822 | 172 | 63 | — | 68,057 | Corporate equities3 | 75,181 | 226 | 45 | — | 75,452 | ||||||||||||||||||||||
Derivative and other contracts: | Derivative and other contracts: | Derivative and other contracts: | ||||||||||||||||||||||||||||||||
Interest rate | Interest rate | 4,789 | 213,321 | 528 | — | 218,638 | Interest rate | 1,087 | 145,670 | 445 | — | 147,202 | ||||||||||||||||||||||
Credit | Credit | 0 | 7,500 | 652 | — | 8,152 | Credit | — | 9,090 | 411 | — | 9,501 | ||||||||||||||||||||||
Foreign exchange | Foreign exchange | 11 | 94,698 | 199 | — | 94,908 | Foreign exchange | 19 | 73,096 | 80 | — | 73,195 | ||||||||||||||||||||||
Equity | Equity | 1,245 | 81,683 | 3,600 | — | 86,528 | Equity | 2,119 | 77,363 | 1,196 | — | 80,678 | ||||||||||||||||||||||
Commodity and other | Commodity and other | 1,758 | 9,418 | 1,014 | — | 12,190 | Commodity and other | 4,563 | 16,837 | 1,528 | — | 22,928 | ||||||||||||||||||||||
Netting1 | Netting1 | (5,488) | (310,534) | (1,351) | (58,105) | (375,478) | Netting1 | (5,696) | (241,814) | (794) | (50,632) | (298,936) | ||||||||||||||||||||||
Total derivative and other contracts | Total derivative and other contracts | 2,315 | 96,086 | 4,642 | (58,105) | 44,938 | Total derivative and other contracts | 2,092 | 80,242 | 2,866 | (50,632) | 34,568 | ||||||||||||||||||||||
Total trading liabilities | Total trading liabilities | 104,550 | 106,465 | 4,721 | (58,105) | 157,631 | Total trading liabilities | 114,477 | 91,556 | 2,927 | (50,632) | 158,328 | ||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | 0 | 671 | 444 | — | 1,115 | Securities sold under agreements to repurchase | — | 140 | 651 | — | 791 | ||||||||||||||||||||||
Other secured financings | Other secured financings | 0 | 11,185 | 516 | — | 11,701 | Other secured financings | — | 4,730 | 403 | — | 5,133 | ||||||||||||||||||||||
Borrowings | Borrowings | 0 | 69,327 | 4,374 | — | 73,701 | Borrowings | — | 74,183 | 2,157 | — | 76,340 | ||||||||||||||||||||||
Total liabilities at fair value | Total liabilities at fair value | $ | 104,550 | $ | 191,043 | $ | 10,181 | $ | (58,105) | $ | 247,669 | Total liabilities at fair value | $ | 114,477 | $ | 172,482 | $ | 6,205 | $ | (50,632) | $ | 242,532 |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Corporate | Corporate | $ | 13 | $ | 13 | Corporate | $ | 8 | $ | 8 | ||||||
Secured lending facilities | 666 | 648 | ||||||||||||||
Commercial Real Estate | Commercial Real Estate | 2,441 | 916 | Commercial Real Estate | 1,407 | 863 | ||||||||||
Residential Real Estate | Residential Real Estate | 1,829 | 2,145 | Residential Real Estate | 3,085 | 3,911 | ||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | 10,196 | 7,426 | Securities-based lending and Other loans | 7,990 | 7,845 | ||||||||||
Total | Total | $ | 15,145 | $ | 11,148 | Total | $ | 12,490 | $ | 12,627 |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Customer and other receivables, net | $ | 323 | $ | 434 | ||||||||||||
Customer and other receivables (payables), net | Customer and other receivables (payables), net | $ | 377 | $ | 948 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
U.S. Treasury and agency securities | ||||||||||||||
Beginning balance | $ | 12 | $ | 99 | $ | 9 | $ | 22 | ||||||
Realized and unrealized gains (losses) | 44 | (3) | 59 | (20) | ||||||||||
Purchases | 22 | 81 | 25 | 108 | ||||||||||
Sales | (68) | (38) | (68) | (23) | ||||||||||
Net transfers | 15 | (42) | 0 | 10 | ||||||||||
Ending balance | $ | 25 | $ | 97 | $ | 25 | $ | 97 | ||||||
Unrealized gains (losses) | $ | 44 | $ | (1) | $ | 58 | $ | (21) | ||||||
Other sovereign government obligations | ||||||||||||||
Beginning balance | $ | 17 | $ | 17 | $ | 268 | $ | 5 | ||||||
Realized and unrealized gains (losses) | 0 | (1) | 0 | 0 | ||||||||||
Purchases | 75 | 0 | 76 | 9 | ||||||||||
Sales | (16) | (3) | (260) | (4) | ||||||||||
Net transfers | 2 | (2) | (6) | 1 | ||||||||||
Ending balance | $ | 78 | $ | 11 | $ | 78 | $ | 11 | ||||||
Unrealized gains (losses) | $ | 0 | $ | (1) | $ | 0 | $ | 0 | ||||||
State and municipal securities | ||||||||||||||
Beginning balance | $ | 0 | $ | 1 | $ | 0 | $ | 1 | ||||||
Purchases | 4 | 0 | 4 | 0 | ||||||||||
Net transfers | 0 | (1) | 0 | (1) | ||||||||||
Ending balance | $ | 4 | $ | 0 | $ | 4 | $ | 0 | ||||||
Unrealized gains (losses) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||
MABS | ||||||||||||||
Beginning balance | $ | 374 | $ | 483 | $ | 322 | $ | 438 | ||||||
Realized and unrealized gains (losses) | 8 | 11 | 59 | (62) | ||||||||||
Purchases | 21 | 274 | 128 | 384 | ||||||||||
Sales | (58) | (401) | (123) | (418) | ||||||||||
Net transfers | 12 | 12 | (29) | 37 | ||||||||||
Ending balance | $ | 357 | $ | 379 | $ | 357 | $ | 379 | ||||||
Unrealized gains (losses) | $ | 6 | $ | 8 | $ | 1 | $ | (60) | ||||||
Loans and lending commitments | ||||||||||||||
Beginning balance | $ | 5,045 | $ | 5,980 | $ | 5,759 | $ | 5,073 | ||||||
Realized and unrealized gains (losses) | 22 | (2) | 3 | (119) | ||||||||||
Purchases and originations | 1,527 | 808 | 2,673 | 1,160 | ||||||||||
Sales | (1,438) | (672) | (2,569) | (755) | ||||||||||
Settlements | (712) | (901) | (933) | (1,508) | ||||||||||
Net transfers1 | 452 | (1,145) | (37) | 217 | ||||||||||
Ending balance | $ | 4,896 | $ | 4,068 | $ | 4,896 | $ | 4,068 | ||||||
Unrealized gains (losses) | $ | 38 | $ | 5 | $ | 9 | $ | (116) | ||||||
Corporate and other debt | ||||||||||||||
Beginning balance | $ | 3,319 | $ | 1,708 | $ | 3,435 | $ | 1,396 | ||||||
Realized and unrealized gains (losses) | 207 | 55 | 135 | (87) | ||||||||||
Purchases and originations | 883 | 2,859 | 1,413 | 2,522 | ||||||||||
Sales | (908) | (1,726) | (1,087) | (861) | ||||||||||
Settlements | 0 | (232) | 0 | (311) | ||||||||||
Net transfers2 | (1,700) | 22 | (2,095) | 27 | ||||||||||
Ending balance | $ | 1,801 | $ | 2,686 | $ | 1,801 | $ | 2,686 | ||||||
Unrealized gains (losses) | $ | 264 | $ | 46 | $ | 248 | $ | (92) |
(Unaudited) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Corporate equities | ||||||||||||||
Beginning balance | $ | 114 | $ | 146 | $ | 86 | $ | 97 | ||||||
Realized and unrealized gains (losses) | 12 | (12) | 26 | (100) | ||||||||||
Purchases | 25 | 13 | 50 | 24 | ||||||||||
Sales | (36) | (25) | (38) | (127) | ||||||||||
Net transfers | 35 | (39) | 26 | 189 | ||||||||||
Ending balance | $ | 150 | $ | 83 | $ | 150 | $ | 83 | ||||||
Unrealized gains (losses) | $ | 15 | $ | (9) | $ | 28 | $ | (91) | ||||||
Investments | ||||||||||||||
Beginning balance | $ | 924 | $ | 725 | $ | 828 | $ | 858 | ||||||
Realized and unrealized gains (losses) | 47 | (23) | 107 | (49) | ||||||||||
Purchases | 28 | 14 | 92 | 17 | ||||||||||
Sales | (9) | (11) | (24) | (20) | ||||||||||
Net transfers | (12) | 54 | (25) | (47) | ||||||||||
Ending balance | $ | 978 | $ | 759 | $ | 978 | $ | 759 | ||||||
Unrealized gains (losses) | $ | 47 | $ | (22) | $ | 94 | $ | (50) | ||||||
Investment securities —AFS | ||||||||||||||
Beginning balance | $ | 127 | $ | 0 | $ | 2,804 | $ | 0 | ||||||
Realized and unrealized gains (losses) | 0 | 0 | (4) | 0 | ||||||||||
Sales | (11) | 0 | (203) | 0 | ||||||||||
Net transfers3 | (116) | 0 | (2,597) | 0 | ||||||||||
Ending balance | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||
Unrealized gains (losses) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||
Securities purchased under agreements to resell | ||||||||||||||
Beginning balance | $ | 0 | $ | 0 | $ | 3 | $ | 0 | ||||||
Net transfers | 0 | 0 | (3) | 0 | ||||||||||
Ending balance | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||
Unrealized gains (losses) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||
Net derivatives: Interest rate | ||||||||||||||
Beginning balance | $ | 691 | $ | 873 | $ | 682 | $ | 777 | ||||||
Realized and unrealized gains (losses) | (43) | (126) | (388) | 70 | ||||||||||
Purchases | 41 | 11 | 57 | 129 | ||||||||||
Issuances | (52) | (24) | (66) | (27) | ||||||||||
Settlements | 18 | (12) | 103 | (26) | ||||||||||
Net transfers | 13 | 38 | 280 | (163) | ||||||||||
Ending balance | $ | 668 | $ | 760 | $ | 668 | $ | 760 | ||||||
Unrealized gains (losses) | $ | (40) | $ | (160) | $ | (370) | $ | 27 | ||||||
Net derivatives: Credit | ||||||||||||||
Beginning balance | $ | (82) | $ | 198 | $ | 49 | $ | 124 | ||||||
Realized and unrealized gains (losses) | (88) | (74) | (75) | (60) | ||||||||||
Purchases | 17 | 13 | 25 | 44 | ||||||||||
Issuances | (24) | (22) | (38) | (39) | ||||||||||
Settlements | 36 | 54 | (60) | 102 | ||||||||||
Net transfers | (62) | (38) | (104) | (40) | ||||||||||
Ending balance | $ | (203) | $ | 131 | $ | (203) | $ | 131 | ||||||
Unrealized gains (losses) | $ | (76) | $ | (143) | $ | (75) | $ | (63) |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||||||||||||
Net derivatives: Foreign exchange | ||||||||||||||||||||||||||||
U.S. Treasury and agency securities | U.S. Treasury and agency securities | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 2 | $ | 9 | |||||||||||||||||||||||
Purchases | Purchases | 1 | 12 | |||||||||||||||||||||||||
Sales | Sales | — | (9) | |||||||||||||||||||||||||
Net transfers | Net transfers | 5 | — | |||||||||||||||||||||||||
Ending balance | Ending balance | $ | 8 | $ | 12 | |||||||||||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | — | $ | — | |||||||||||||||||||||||
Other sovereign government obligations | Other sovereign government obligations | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 211 | $ | 268 | |||||||||||||||||||||||
Purchases | Purchases | 6 | 15 | |||||||||||||||||||||||||
Sales | Sales | (40) | (256) | |||||||||||||||||||||||||
Net transfers | Net transfers | 11 | (10) | |||||||||||||||||||||||||
Ending balance | Ending balance | $ | 188 | $ | 17 | |||||||||||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | — | $ | — | |||||||||||||||||||||||
State and municipal securities | State and municipal securities | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 13 | $ | — | |||||||||||||||||||||||
Net transfers | Net transfers | (13) | — | |||||||||||||||||||||||||
Ending balance | Ending balance | $ | — | $ | — | |||||||||||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | — | $ | — | |||||||||||||||||||||||
MABS | MABS | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | (110) | $ | (150) | $ | 61 | $ | (31) | Beginning balance | $ | 344 | $ | 322 | ||||||||||||||
Realized and unrealized gains (losses) | Realized and unrealized gains (losses) | 96 | 122 | (26) | 94 | Realized and unrealized gains (losses) | (1) | 51 | ||||||||||||||||||||
Purchases | Purchases | 2 | 0 | 4 | 3 | Purchases | 56 | 144 | ||||||||||||||||||||
Issuances | 0 | 0 | (2) | (9) | ||||||||||||||||||||||||
Sales | Sales | (96) | (103) | |||||||||||||||||||||||||
Net transfers | Net transfers | 48 | (40) | |||||||||||||||||||||||||
Ending balance | Ending balance | $ | 351 | $ | 374 | |||||||||||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | (3) | $ | (2) | |||||||||||||||||||||||
Loans and lending commitments | Loans and lending commitments | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 3,806 | $ | 5,759 | |||||||||||||||||||||||
Realized and unrealized gains (losses) | Realized and unrealized gains (losses) | 26 | (26) | |||||||||||||||||||||||||
Purchases and originations | Purchases and originations | 369 | 1,833 | |||||||||||||||||||||||||
Sales | Sales | (210) | (2,060) | |||||||||||||||||||||||||
Settlements | Settlements | 1 | 2 | (67) | (11) | Settlements | (409) | (388) | ||||||||||||||||||||
Net transfers | Net transfers | 44 | 43 | 63 | (29) | Net transfers | (441) | (73) | ||||||||||||||||||||
Ending balance | Ending balance | $ | 33 | $ | 17 | $ | 33 | $ | 17 | Ending balance | $ | 3,141 | $ | 5,045 | ||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | (49) | $ | 44 | $ | 25 | $ | 35 | Unrealized gains (losses) | $ | 22 | $ | (32) | ||||||||||||||
Net derivatives: Equity | ||||||||||||||||||||||||||||
Corporate and other debt | Corporate and other debt | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | (2,117) | $ | (1,376) | $ | (2,231) | $ | (1,684) | Beginning balance | $ | 1,973 | $ | 3,435 | ||||||||||||||
Realized and unrealized gains (losses) | Realized and unrealized gains (losses) | 283 | (135) | 344 | 181 | Realized and unrealized gains (losses) | 12 | (51) | ||||||||||||||||||||
Purchases | 28 | 149 | 71 | 237 | ||||||||||||||||||||||||
Issuances | (143) | (391) | (461) | (595) | ||||||||||||||||||||||||
Settlements | 105 | 10 | 5 | (52) | ||||||||||||||||||||||||
Net transfers2 | 1,007 | (141) | 1,435 | 29 | ||||||||||||||||||||||||
Ending balance | $ | (837) | $ | (1,884) | $ | (837) | $ | (1,884) | ||||||||||||||||||||
Unrealized gains (losses) | $ | (36) | $ | (156) | $ | (25) | $ | (4) | ||||||||||||||||||||
Net derivatives: Commodity and other | ||||||||||||||||||||||||||||
Beginning balance | $ | 1,944 | $ | 1,849 | $ | 1,709 | $ | 1,612 | ||||||||||||||||||||
Realized and unrealized gains (losses) | 122 | 338 | 348 | 448 | ||||||||||||||||||||||||
Purchases | 0 | 3 | 10 | 21 | ||||||||||||||||||||||||
Issuances | 0 | (2) | (13) | (17) | ||||||||||||||||||||||||
Purchases and originations | Purchases and originations | 71 | 867 | |||||||||||||||||||||||||
Sales | Sales | (160) | (749) | |||||||||||||||||||||||||
Settlements | Settlements | (170) | (119) | (222) | 7 | Settlements | — | (255) | ||||||||||||||||||||
Net transfers | Net transfers | (466) | 18 | (402) | 16 | Net transfers | (143) | 72 | ||||||||||||||||||||
Ending balance | Ending balance | $ | 1,430 | $ | 2,087 | $ | 1,430 | $ | 2,087 | Ending balance | $ | 1,753 | $ | 3,319 | ||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | (63) | $ | 182 | $ | 69 | $ | 257 | Unrealized gains (losses) | $ | 7 | $ | 2 | ||||||||||||||
Deposits | ||||||||||||||||||||||||||||
Corporate equities | Corporate equities | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 177 | $ | 117 | $ | 126 | $ | 179 | Beginning balance | $ | 115 | $ | 86 | ||||||||||||||
Realized and unrealized losses (gains) | 4 | 6 | 2 | 3 | ||||||||||||||||||||||||
Settlements | (2) | (4) | (2) | (9) | ||||||||||||||||||||||||
Net transfers | (93) | (29) | (40) | (83) | ||||||||||||||||||||||||
Ending balance | $ | 86 | $ | 90 | $ | 86 | $ | 90 | ||||||||||||||||||||
Unrealized losses (gains) | $ | 4 | $ | 7 | $ | 2 | $ | 3 | ||||||||||||||||||||
Nonderivative trading liabilities | ||||||||||||||||||||||||||||
Beginning balance | $ | 62 | $ | 64 | $ | 79 | $ | 37 | ||||||||||||||||||||
Realized and unrealized losses (gains) | (4) | 5 | 4 | (10) | ||||||||||||||||||||||||
Realized and unrealized gains (losses) | Realized and unrealized gains (losses) | — | 16 | |||||||||||||||||||||||||
Purchases | Purchases | (38) | (42) | (43) | (45) | Purchases | 24 | 25 | ||||||||||||||||||||
Sales | Sales | 16 | 24 | 16 | 22 | Sales | (82) | (46) | ||||||||||||||||||||
Settlements | 0 | 0 | 0 | 3 | ||||||||||||||||||||||||
Net transfers | 23 | 23 | 3 | 67 | ||||||||||||||||||||||||
Ending balance | $ | 59 | $ | 74 | $ | 59 | $ | 74 | ||||||||||||||||||||
Unrealized losses (gains) | $ | (2) | $ | 5 | $ | 4 | $ | (10) | ||||||||||||||||||||
Securities sold under agreements to repurchase | ||||||||||||||||||||||||||||
Beginning balance | $ | 441 | $ | 0 | $ | 444 | $ | 0 | ||||||||||||||||||||
Realized and unrealized losses (gains) | 8 | (31) | 6 | (31) | ||||||||||||||||||||||||
Issuances | 0 | 471 | 0 | 471 | ||||||||||||||||||||||||
Net transfers | Net transfers | 0 | 0 | (1) | 0 | Net transfers | 182 | 33 | ||||||||||||||||||||
Ending balance | Ending balance | $ | 449 | $ | 440 | $ | 449 | $ | 440 | Ending balance | $ | 239 | $ | 114 | ||||||||||||||
Unrealized losses (gains) | $ | 8 | $ | (31) | $ | 6 | $ | (31) | ||||||||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | — | $ | 18 |
Notes to Consolidated Financial Statements (Unaudited) |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||||||||||||
Other secured financings | ||||||||||||||||||||||||||||
Investments | Investments | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 555 | $ | 389 | $ | 516 | $ | 109 | Beginning balance | $ | 1,125 | $ | 828 | ||||||||||||||
Realized and unrealized losses (gains) | 9 | 0 | 4 | (12) | ||||||||||||||||||||||||
Realized and unrealized gains (losses) | Realized and unrealized gains (losses) | (24) | 6 | |||||||||||||||||||||||||
Purchases | Purchases | 20 | 64 | |||||||||||||||||||||||||
Sales | Sales | (4) | (15) | |||||||||||||||||||||||||
Net transfers | Net transfers | 3 | 41 | |||||||||||||||||||||||||
Ending balance | Ending balance | $ | 1,120 | $ | 924 | |||||||||||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | (26) | $ | (6) | |||||||||||||||||||||||
Investment securities —AFS | Investment securities —AFS | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | — | $ | 2,804 | |||||||||||||||||||||||
Realized and unrealized gains (losses) | Realized and unrealized gains (losses) | — | (4) | |||||||||||||||||||||||||
Sales | Sales | — | (192) | |||||||||||||||||||||||||
Net transfers1 | Net transfers1 | — | (2,481) | |||||||||||||||||||||||||
Ending balance | Ending balance | $ | — | $ | 127 | |||||||||||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | — | $ | (5) | |||||||||||||||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | — | $ | 3 | |||||||||||||||||||||||
Net transfers | Net transfers | — | (3) | |||||||||||||||||||||||||
Ending balance | Ending balance | $ | — | $ | — | |||||||||||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | — | $ | — | |||||||||||||||||||||||
Net derivatives: Interest rate | Net derivatives: Interest rate | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 708 | $ | 682 | |||||||||||||||||||||||
Realized and unrealized gains (losses) | Realized and unrealized gains (losses) | 39 | (413) | |||||||||||||||||||||||||
Purchases | Purchases | 3 | 31 | |||||||||||||||||||||||||
Issuances | Issuances | 37 | 5 | 407 | 7 | Issuances | (2) | (17) | ||||||||||||||||||||
Settlements | Settlements | (176) | (88) | (498) | (203) | Settlements | (21) | 83 | ||||||||||||||||||||
Net transfers | Net transfers | (24) | (6) | (28) | 399 | Net transfers | (93) | 325 | ||||||||||||||||||||
Ending balance | Ending balance | $ | 401 | $ | 300 | $ | 401 | $ | 300 | Ending balance | $ | 634 | $ | 691 | ||||||||||||||
Unrealized losses (gains) | $ | 10 | $ | 0 | $ | 4 | $ | (12) | ||||||||||||||||||||
Borrowings | ||||||||||||||||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | 147 | $ | (403) | |||||||||||||||||||||||
Net derivatives: Credit | Net derivatives: Credit | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 4,262 | $ | 3,998 | $ | 4,374 | $ | 4,088 | Beginning balance | $ | 98 | $ | 49 | ||||||||||||||
Realized and unrealized losses (gains) | 125 | 500 | 36 | (202) | ||||||||||||||||||||||||
Realized and unrealized gains (losses) | Realized and unrealized gains (losses) | 43 | (4) | |||||||||||||||||||||||||
Purchases | Purchases | 8 | 19 | |||||||||||||||||||||||||
Issuances | Issuances | 146 | 385 | 276 | 766 | Issuances | (8) | (8) | ||||||||||||||||||||
Settlements | Settlements | (217) | (92) | (326) | (283) | Settlements | (68) | (72) | ||||||||||||||||||||
Net transfers2 | (2,341) | (656) | (2,385) | (234) | ||||||||||||||||||||||||
Net transfers | Net transfers | 20 | (66) | |||||||||||||||||||||||||
Ending balance | Ending balance | $ | 1,975 | $ | 4,135 | $ | 1,975 | $ | 4,135 | Ending balance | $ | 93 | $ | (82) | ||||||||||||||
Unrealized losses (gains) | $ | 121 | $ | 496 | $ | 29 | $ | (200) | ||||||||||||||||||||
Portion of Unrealized losses (gains) recorded in OCI—Change in net DVA | (4) | 281 | (8) | (125) | ||||||||||||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | 28 | $ | (13) | |||||||||||||||||||||||
Net derivatives: Foreign exchange | Net derivatives: Foreign exchange | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 52 | $ | 61 | |||||||||||||||||||||||
Realized and unrealized gains (losses) | Realized and unrealized gains (losses) | (145) | (236) | |||||||||||||||||||||||||
Purchases | Purchases | 5 | 2 | |||||||||||||||||||||||||
Issuances | Issuances | — | (4) | |||||||||||||||||||||||||
Settlements | Settlements | 81 | 26 | |||||||||||||||||||||||||
Net transfers | Net transfers | (26) | 41 | |||||||||||||||||||||||||
Ending balance | Ending balance | $ | (33) | $ | (110) | |||||||||||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | (138) | $ | (206) | |||||||||||||||||||||||
Net derivatives: Equity | Net derivatives: Equity | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | (945) | $ | (2,231) | |||||||||||||||||||||||
Realized and unrealized gains (losses) | Realized and unrealized gains (losses) | 98 | 63 | |||||||||||||||||||||||||
Purchases | Purchases | 28 | 77 | |||||||||||||||||||||||||
Issuances | Issuances | (68) | (297) | |||||||||||||||||||||||||
Settlements | Settlements | 117 | 65 | |||||||||||||||||||||||||
Net transfers | Net transfers | 116 | 206 | |||||||||||||||||||||||||
Ending balance | Ending balance | $ | (654) | $ | (2,117) | |||||||||||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | 88 | $ | 12 |
Three Months Ended March 31, | ||||||||||||||
$ in millions | 2022 | 2021 | ||||||||||||
Net derivatives: Commodity and other | ||||||||||||||
Beginning balance | $ | 1,529 | $ | 1,709 | ||||||||||
Realized and unrealized gains (losses) | 4 | 331 | ||||||||||||
Purchases | 9 | 7 | ||||||||||||
Issuances | (11) | (1) | ||||||||||||
Settlements | (47) | (131) | ||||||||||||
Net transfers | (50) | 29 | ||||||||||||
Ending balance | $ | 1,434 | $ | 1,944 | ||||||||||
Unrealized gains (losses) | $ | (216) | $ | 215 | ||||||||||
Deposits | ||||||||||||||
Beginning balance | $ | 67 | $ | 126 | ||||||||||
Realized and unrealized losses (gains) | — | (4) | ||||||||||||
Issuances | — | 11 | ||||||||||||
Settlements | (5) | (2) | ||||||||||||
Net transfers | (36) | 46 | ||||||||||||
Ending balance | $ | 26 | $ | 177 | ||||||||||
Unrealized losses (gains) | $ | — | $ | (4) | ||||||||||
Nonderivative trading liabilities | ||||||||||||||
Beginning balance | $ | 61 | $ | 79 | ||||||||||
Realized and unrealized losses (gains) | (3) | (9) | ||||||||||||
Purchases | (33) | (20) | ||||||||||||
Sales | 11 | 13 | ||||||||||||
Net transfers | 12 | (1) | ||||||||||||
Ending balance | $ | 48 | $ | 62 | ||||||||||
Unrealized losses (gains) | $ | (3) | $ | (9) | ||||||||||
Securities sold under agreements to repurchase | ||||||||||||||
Beginning balance | $ | 651 | $ | 444 | ||||||||||
Realized and unrealized losses (gains) | 2 | (2) | ||||||||||||
Settlements | (10) | — | ||||||||||||
Net transfers | (127) | (1) | ||||||||||||
Ending balance | $ | 516 | $ | 441 | ||||||||||
Unrealized losses (gains) | $ | 2 | $ | (2) | ||||||||||
Other secured financings | ||||||||||||||
Beginning balance | $ | 403 | $ | 516 | ||||||||||
Realized and unrealized losses (gains) | (3) | (5) | ||||||||||||
Issuances | 28 | 370 | ||||||||||||
Settlements | (305) | (322) | ||||||||||||
Net transfers | (3) | (4) | ||||||||||||
Ending balance | $ | 120 | $ | 555 | ||||||||||
Unrealized losses (gains) | $ | (3) | $ | (5) | ||||||||||
Borrowings | ||||||||||||||
Beginning balance | $ | 2,157 | $ | 4,374 | ||||||||||
Realized and unrealized losses (gains) | (143) | (118) | ||||||||||||
Issuances | 161 | 231 | ||||||||||||
Settlements | (42) | (316) | ||||||||||||
Net transfers | 266 | 91 | ||||||||||||
Ending balance | $ | 2,399 | $ | 4,262 | ||||||||||
Unrealized losses (gains) | $ | (143) | $ | (116) | ||||||||||
Portion of Unrealized losses (gains) recorded in OCI—Change in net DVA | (29) | (29) |
39 | March 2022 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
Balance / Range (Average1) | Balance / Range (Average1) | |||||||||||||||
$ in millions, except inputs | $ in millions, except inputs | At June 30, 2021 | At December 31, 2020 | $ in millions, except inputs | At March 31, 2022 | At December 31, 2021 | ||||||||||
Assets at Fair Value on a Recurring Basis | Assets at Fair Value on a Recurring Basis | Assets at Fair Value on a Recurring Basis | ||||||||||||||
Other sovereign government obligations | Other sovereign government obligations | $ | 78 | $ | 268 | Other sovereign government obligations | $ | 188 | $ | 211 | ||||||
Comparable pricing: | Comparable pricing: | Comparable pricing: | ||||||||||||||
Bond price | Bond price | 132 to 153 points (143 points) | 106 points | Bond price | 91 to 108 points (100 points) | 100 to 140 points (120 points) | ||||||||||
MABS | MABS | $ | 357 | $ | 322 | MABS | $ | 351 | $ | 344 | ||||||
Comparable pricing: | Comparable pricing: | Comparable pricing: | ||||||||||||||
Bond price | Bond price | 0 to 81 points (55 points) | 0 to 80 points (50 points) | Bond price | 0 to 83 points (58 points) | 0 to 86 points (59 points) | ||||||||||
Loans and lending commitments | Loans and lending commitments | $ | 4,896 | $ | 5,759 | Loans and lending commitments | $ | 3,141 | $ | 3,806 | ||||||
Margin loan model: | Margin loan model: | Margin loan model: | ||||||||||||||
Margin loan rate | Margin loan rate | 0% to 4% (2%) | 1% to 5% (3%) | Margin loan rate | 1% to 4% (3%) | 1% to 4% (3%) | ||||||||||
Comparable pricing: | Comparable pricing: | Comparable pricing: | ||||||||||||||
Loan price | Loan price | 75 to 101 points (98 points) | 75 to 102 points (93 points) | Loan price | 88 to 102 points (97 points) | 89 to 101 points (97 points) | ||||||||||
Corporate and other debt | Corporate and other debt | $ | 1,801 | $ | 3,435 | Corporate and other debt | $ | 1,753 | $ | 1,973 | ||||||
Comparable pricing: | Comparable pricing: | Comparable pricing: | ||||||||||||||
Bond price | Bond price | 90 to 102 points (98 points) | 10 to 133 points (101 points) | Bond price | 50 to 165 points (98 points) | 50 to 163 points (99 points) | ||||||||||
Discounted cash flow: | Discounted cash flow: | Discounted cash flow: | ||||||||||||||
Recovery rate | 40% to 62% (46% / 40%) | 40% to 62% (46% / 40%) | ||||||||||||||
Loss given default | Loss given default | 54% to 84% (62% / 54%) | 54% to 84% (62% / 54%) | |||||||||||||
Option model: | ||||||||||||||||
Equity volatility | 37% to 47% (41%) | 18% to 21% (19%) | ||||||||||||||
Corporate equities | Corporate equities | $ | 150 | $ | 86 | Corporate equities | $ | 239 | $ | 115 | ||||||
Comparable pricing: | Comparable pricing: | Comparable pricing: | ||||||||||||||
Equity price | Equity price | 100% | 100% | Equity price | 100% | 100% | ||||||||||
Investments | Investments | $ | 978 | $ | 828 | Investments | $ | 1,120 | $ | 1,125 | ||||||
Discounted cash flow: | Discounted cash flow: | Discounted cash flow: | ||||||||||||||
WACC | WACC | 10% to 16% (15%) | 8% to 18% (15%) | WACC | 13% to 16% (15%) | 10% to 16% (15%) | ||||||||||
Exit multiple | Exit multiple | 8 to 17 times (12 times) | 7 to 17 times (12 times) | Exit multiple | 8 to 17 times (12 times) | 8 to 17 times (12 times) | ||||||||||
Market approach: | Market approach: | Market approach: | ||||||||||||||
EBITDA multiple | EBITDA multiple | 8 to 40 times (10 times) | 8 to 32 times (11 times) | EBITDA multiple | 8 to 23 times (9 times) | 8 to 25 times (10 times) | ||||||||||
Comparable pricing: | Comparable pricing: | Comparable pricing: | ||||||||||||||
Equity price | Equity price | 43% to 100% (99%) | 45% to 100% (99%) | Equity price | 43% to 100% (99%) | 43% to 100% (99%) | ||||||||||
Investment securities —AFS | $ | 0 | $ | 2,804 | ||||||||||||
Comparable pricing: | ||||||||||||||||
Bond price | N/A | 97 to 107 points (101 points) | ||||||||||||||
Net derivative and other contracts: | ||||||||||||||||
Interest rate | $ | 668 | $ | 682 | ||||||||||||
Option model: | ||||||||||||||||
IR volatility skew | 25% to 104% (60% / 59%) | 0% to 349% (62% / 59%) | ||||||||||||||
IR curve correlation | 69% to 98% (84% / 83%) | 54% to 99% (87% / 89%) | ||||||||||||||
Bond volatility | 4% to 25% (10% / 6%) | 6% to 24% (13% / 13%) | ||||||||||||||
Inflation volatility | 25% to 66% (45% / 43%) | 25% to 66% (45% / 43%) | ||||||||||||||
IR curve | 1% to 2% (2%) | 1% |
Balance / Range (Average1) | ||||||||
$ in millions, except inputs | At March 31, 2022 | At December 31, 2021 | ||||||
Net derivative and other contracts: | ||||||||
Interest rate | $ | 634 | $ | 708 | ||||
Option model: | ||||||||
IR volatility skew | 45% to 79% (61% / 63%) | 39% to 79% (64% / 63%) | ||||||
IR curve correlation | 46% to 93% (73% / 76%) | 62% to 98% (83% / 84%) | ||||||
Bond volatility | 8% to 26% (15% / 14%) | 5% to 32% (12% / 9%) | ||||||
Inflation volatility | 24% to 65% (44% / 40%) | 24% to 65% (44% / 40%) | ||||||
IR curve | N/M | 4% | ||||||
Credit | $ | 93 | $ | 98 | ||||
Credit default swap model: | ||||||||
Cash-synthetic basis | 7 points | 7 points | ||||||
Bond price | N/M | 0 to 83 points (46 points) | ||||||
Credit spread | 10 to 481 bps (95 bps) | 14 to 477 bps (68 bps) | ||||||
Funding spread | 15 to 590 bps (77 bps) | 15 to 433 bps (55 bps) | ||||||
Foreign exchange2 | $ | (33) | $ | 52 | ||||
Option model: | ||||||||
IR - FX correlation | 54% to 56% (55% 55%) | 53% to 56% (55% / 54%) | ||||||
IR volatility skew | 45% to 79% (61% / 63%) | 39% to 79% (64% / 63%) | ||||||
IR curve | 2% to 7% (5% / 7%) | -1% to 7% (2% / 0%) | ||||||
Foreign exchange volatility skew | -37% to 25% (0% / 1%) | -4% to -2% (-3% / -3%) | ||||||
Contingency probability | 80% to 95% (93% / 95%) | 90% to 95% (94% / 95%) | ||||||
Equity2 | $ | (654) | $ | (945) | ||||
Option model: | ||||||||
Equity volatility | 7% to 96% (24%) | 5% to 99% (24%) | ||||||
Equity volatility skew | -6% to 0% (-1%) | -4% to 0% (-1%) | ||||||
Equity correlation | 5% to 97% (75%) | 5% to 99% (73%) | ||||||
FX correlation | -85% to 60% (-47%) | -85% to 37% (-42%) | ||||||
IR correlation | 12% to 30% (14%) | 13% to 30% (15%) | ||||||
Commodity and other | $ | 1,434 | $ | 1,529 | ||||
Option model: | ||||||||
Forward power price | $7 to $260 ($48) per MWh | $4 to $263 ($39) per MWh | ||||||
Commodity volatility | 8% to 196% (32%) | 8% to 385% (22%) | ||||||
Cross-commodity correlation | 41% to 100% (94%) | 43% to 100% (94%) | ||||||
Liabilities Measured at Fair Value on a Recurring Basis | ||||||||
Deposits | $ | 26 | $ | 67 | ||||
Option model: | ||||||||
Equity volatility | N/M | 7% | ||||||
Securities sold under agreements to repurchase | $ | 516 | $ | 651 | ||||
Discounted cash flow: | ||||||||
Funding spread | 84 to 131 bps (108 bps) | 112 to 127 bps (120 bps) | ||||||
Other secured financings | $ | 120 | $ | 403 | ||||
Comparable pricing: | ||||||||
Loan price | 23 to 100 points (80 points) | 30 to 100 points (83 points) | ||||||
40 |
Notes to Consolidated Financial Statements (Unaudited) |
Balance / Range (Average1) | ||||||||
$ in millions, except inputs | At June 30, 2021 | At December 31, 2020 | ||||||
Credit | $ | (203) | $ | 49 | ||||
Credit default swap model: | ||||||||
Cash-synthetic basis | 7 points | 7 points | ||||||
Bond price | 0 to 85 points (46 points) | 0 to 85 points (47 points) | ||||||
Credit spread | 14 to 474 bps (90 bps) | 20 to 435 bps (74 bps) | ||||||
Funding spread | 21 to 95 bps (62 bps) | 65 to 118 bps (86 bps) | ||||||
Correlation model: | ||||||||
Credit correlation | 26% to 42% (29%) | 27% to 44% (32%) | ||||||
Foreign exchange2 | $ | 33 | $ | 61 | ||||
Option model: | ||||||||
IR - FX correlation | 53% to 57% (55% 55%) | 55% to 59% (56% / 56%) | ||||||
IR volatility skew | 25% to 104% (60% / 59%) | 0% to 349% (62% / 59%) | ||||||
IR curve | 6% to 7% (7% / 7%) | 6% to 8% (7% / 8%) | ||||||
Foreign exchange volatility skew | -6% to -3% (-5% / -5%) | -22% to 28% (3% / 1%) | ||||||
Contingency probability | 95% | 50% to 95% (83% / 93%) | ||||||
Equity2 | $ | (837) | $ | (2,231) | ||||
Option model: | ||||||||
Equity volatility | 5% to 91% (23%) | 16% to 97% (43%) | ||||||
Equity volatility skew | -3% to 0% (-1%) | -3% to 0% (-1%) | ||||||
Equity correlation | 35% to 98% (68%) | 24% to 96% (74%) | ||||||
FX correlation | -85% to 65% (-35%) | -79% to 60% (-16%) | ||||||
IR correlation | 15% to 40% (38%) | -13% to 47% (21% / 20%) | ||||||
Commodity and other | $ | 1,430 | $ | 1,709 | ||||
Option model: | ||||||||
Forward power price | $-1 to $258 ($33) per MWh | $-1 to $157 ($28) per MWh | ||||||
Commodity volatility | 8% to 176% (19%) | 8% to 183% (19%) | ||||||
Cross-commodity correlation | 43% to 100% (94%) | 43% to 99% (92%) | ||||||
Liabilities Measured at Fair Value on a Recurring Basis | ||||||||
Deposits | $ | 86 | $ | 126 | ||||
Option model: | ||||||||
Equity volatility | 7% | 7% to 22% (8%) | ||||||
Nonderivative trading liabilities —Corporate equities | $ | 50 | $ | 63 | ||||
Comparable pricing: | ||||||||
Equity price | 100% | 100% | ||||||
Securities sold under agreements to repurchase | $ | 449 | $ | 444 | ||||
Discounted cash flow: | ||||||||
Funding spread | 100 to 116 bps (111 bps) | 107 to 127 bps (115 bps) | ||||||
Other secured financings | $ | 401 | $ | 516 | ||||
Discounted cash flow: | ||||||||
Funding spread | N/A | 111 bps (111 bps) | ||||||
Comparable pricing: | ||||||||
Loan price | 30 to 101 points (82 points) | 30 to 101 points (56 points) | ||||||
Balance / Range (Average1) | Balance / Range (Average1) | |||||||||||||||
$ in millions, except inputs | $ in millions, except inputs | At June 30, 2021 | At December 31, 2020 | $ in millions, except inputs | At March 31, 2022 | At December 31, 2021 | ||||||||||
Borrowings | Borrowings | $ | 1,975 | $ | 4,374 | Borrowings | $ | 2,399 | $ | 2,157 | ||||||
Option model: | Option model: | Option model: | ||||||||||||||
Equity volatility | Equity volatility | 7% to 61% (17%) | 6% to 66% (23%) | Equity volatility | 7% to 93% (24%) | 7% to 85% (20%) | ||||||||||
Equity volatility skew | Equity volatility skew | -1% to 0% (0%) | -2% to 0% (0%) | Equity volatility skew | -1% to 0% (0%) | -1% to 0% (0%) | ||||||||||
Equity correlation | Equity correlation | 39% to 95% (81%) | 37% to 95% (78%) | Equity correlation | 39% to 95% (85%) | 41% to 95% (81%) | ||||||||||
Equity - FX correlation | Equity - FX correlation | -32% to 10% (-23%) | -72% to 13% (-24%) | Equity - FX correlation | -55% to 25% (-27%) | -55% to 25% (-30%) | ||||||||||
IR FX Correlation | IR FX Correlation | -28% to 7% (-5% / -5%) | -28% to 6% (-6% / -6%) | IR FX Correlation | -27% to 12% (-6% / -6%) | -26% to 8% (-5% / -5%) | ||||||||||
IR curve correlation | IR curve correlation | 46% to 93% (73% / 76%) | N/M | |||||||||||||
IR volatility skew | IR volatility skew | 34% to 82% (51% / 45%) | N/M | |||||||||||||
Discounted cash flow: | Discounted cash flow: | Discounted cash flow: | ||||||||||||||
Recovery rate | 40% to 62% (46% / 40%) | N/M | ||||||||||||||
Loss given default | Loss given default | 54% to 84% (62% / 54%) | 54% to 84% (62% / 54%) | |||||||||||||
Nonrecurring Fair Value Measurement | Nonrecurring Fair Value Measurement | Nonrecurring Fair Value Measurement | ||||||||||||||
Loans | Loans | $ | 1,202 | $ | 3,134 | Loans | $ | 1,370 | $ | 1,576 | ||||||
Corporate loan model: | Corporate loan model: | Corporate loan model: | ||||||||||||||
Credit spread | Credit spread | 45 to 526 bps (237 bps) | 36 to 636 bps (336 bps) | Credit spread | 79 to 447 bps (266 bps) | 108 to 565 bps (284 bps) | ||||||||||
Comparable pricing: | Comparable pricing: | Comparable pricing: | ||||||||||||||
Loan price | Loan price | 40 to 88 points (76 points) | N/M | Loan price | 47 to 80 points (63 points) | 40 to 80 points (61 points) | ||||||||||
Warehouse model: | Warehouse model: | Warehouse model: | ||||||||||||||
Credit spread | Credit spread | 217 to 309 bps (291 bps) | 200 to 413 bps (368 bps) | Credit spread | 187 to 280 bps (226 bps) | 182 to 446 bps (376 bps) | ||||||||||
Comparable pricing: | ||||||||||||||||
Bond Price | N/A | 88 to 99 bps (94 bps) |
(Unaudited) |
At June 30, 2021 | At December 31, 2020 | At March 31, 2022 | At December 31, 2021 | |||||||||||||||||||||||||
$ in millions | $ in millions | Carrying Value | Commitment | Carrying Value | Commitment | $ in millions | Carrying Value | Commitment | Carrying Value | Commitment | ||||||||||||||||||
Private equity | Private equity | $ | 2,448 | $ | 576 | $ | 2,367 | $ | 644 | Private equity | $ | 2,607 | $ | 579 | $ | 2,492 | $ | 615 | ||||||||||
Real estate | Real estate | 1,518 | 216 | 1,403 | 136 | Real estate | 2,089 | 243 | 2,064 | 248 | ||||||||||||||||||
Hedge1 | Hedge1 | 75 | 3 | 59 | 0 | Hedge1 | 195 | 2 | 191 | 2 | ||||||||||||||||||
Total | Total | $ | 4,041 | $ | 795 | $ | 3,829 | $ | 780 | Total | $ | 4,891 | $ | 824 | $ | 4,747 | $ | 865 |
Carrying Value at June 30, 2021 | Carrying Value at March 31, 2022 | |||||||||||||||
$ in millions | $ in millions | Private Equity | Real Estate | $ in millions | Private Equity | Real Estate | ||||||||||
Less than 5 years | Less than 5 years | $ | 1,148 | $ | 434 | Less than 5 years | $ | 1,041 | $ | 327 | ||||||
5-10 years | 5-10 years | 1,087 | 401 | 5-10 years | 1,109 | 1,745 | ||||||||||
Over 10 years | Over 10 years | 213 | 683 | Over 10 years | 457 | 17 | ||||||||||
Total | Total | $ | 2,448 | $ | 1,518 | Total | $ | 2,607 | $ | 2,089 |
At June 30, 2021 | At March 31, 2022 | |||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||
$ in millions | $ in millions | Level 2 | Level 31 | Total | $ in millions | Level 2 | Level 31 | Total | ||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||
Loans | Loans | $ | 3,787 | $ | 1,202 | $ | 4,989 | Loans | $ | 1,531 | $ | 1,370 | $ | 2,901 | ||||||||
Other assets—Other investments | Other assets—Other investments | 0 | 79 | 79 | Other assets—Other investments | — | 7 | 7 | ||||||||||||||
Other assets—ROU assets | Other assets—ROU assets | 4 | — | 4 | ||||||||||||||||||
Total | Total | $ | 3,787 | $ | 1,281 | $ | 5,068 | Total | $ | 1,535 | $ | 1,377 | $ | 2,912 | ||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||
Other liabilities and accrued expenses—Lending commitments | Other liabilities and accrued expenses—Lending commitments | $ | 154 | $ | 69 | $ | 223 | Other liabilities and accrued expenses—Lending commitments | $ | 201 | $ | 86 | $ | 287 | ||||||||
Total | Total | $ | 154 | $ | 69 | $ | 223 | Total | $ | 201 | $ | 86 | $ | 287 |
41 | March 2022 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||
$ in millions | $ in millions | Level 2 | Level 31 | Total | $ in millions | Level 2 | Level 31 | Total | ||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||
Loans | Loans | $ | 2,566 | $ | 3,134 | $ | 5,700 | Loans | $ | 4,035 | $ | 1,576 | $ | 5,611 | ||||||||
Other assets—Other investments | Other assets—Other investments | $ | 0 | $ | 16 | $ | 16 | Other assets—Other investments | — | 8 | 8 | |||||||||||
Other assets—ROU assets | Other assets—ROU assets | 21 | 0 | 21 | Other assets—ROU assets | $ | 16 | $ | — | $ | 16 | |||||||||||
Total | Total | $ | 2,587 | $ | 3,150 | $ | 5,737 | Total | $ | 4,051 | $ | 1,584 | $ | 5,635 | ||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||
Other liabilities and accrued expenses—Lending commitments | Other liabilities and accrued expenses—Lending commitments | $ | 193 | $ | 72 | $ | 265 | Other liabilities and accrued expenses—Lending commitments | $ | 173 | $ | 70 | $ | 243 | ||||||||
Total | Total | $ | 193 | $ | 72 | $ | 265 | Total | $ | 173 | $ | 70 | $ | 243 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||
Loans2 | Loans2 | $ | (38) | $ | (13) | $ | (55) | $ | (488) | Loans2 | $ | (43) | $ | (13) | ||||||||||||||
Goodwill | Goodwill | 0 | 0 | (8) | 0 | Goodwill | — | (8) | ||||||||||||||||||||
Intangibles | Intangibles | (1) | 0 | (3) | 0 | Intangibles | — | (2) | ||||||||||||||||||||
Other assets—Other investments3 | Other assets—Other investments3 | (2) | (52) | (53) | (52) | Other assets—Other investments3 | (2) | (51) | ||||||||||||||||||||
Other assets—Premises, equipment and software4 | (2) | (3) | (4) | (6) | ||||||||||||||||||||||||
Other assets—Premises, equipment and software | Other assets—Premises, equipment and software | (1) | (2) | |||||||||||||||||||||||||
Other assets—ROU assets | Other assets—ROU assets | (2) | — | |||||||||||||||||||||||||
Total | Total | $ | (43) | $ | (68) | $ | (123) | $ | (546) | Total | $ | (48) | $ | (76) | ||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||||||||
Other liabilities and accrued expenses—Lending commitments2 | Other liabilities and accrued expenses—Lending commitments2 | $ | 5 | $ | 130 | $ | 40 | $ | (88) | Other liabilities and accrued expenses—Lending commitments2 | $ | (49) | $ | 4 | ||||||||||||||
Total | Total | $ | 5 | $ | 130 | $ | 40 | $ | (88) | Total | $ | (49) | $ | 4 |
(Unaudited) |
At June 30, 2021 | At March 31, 2022 | |||||||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||||||||
$ in millions | $ in millions | Level 1 | Level 2 | Level 3 | Total | $ in millions | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Financial assets | Financial assets | Financial assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 126,480 | $ | 126,480 | $ | 0 | $ | 0 | $ | 126,480 | Cash and cash equivalents | $ | 136,086 | $ | 136,086 | $ | — | $ | — | $ | 136,086 | ||||||||||||
Investment securities—HTM | Investment securities—HTM | 82,120 | 30,623 | 51,282 | 972 | 82,877 | Investment securities—HTM | 80,439 | 29,099 | 45,633 | 1,044 | 75,776 | ||||||||||||||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | 95,920 | 0 | 94,399 | 1,526 | 95,925 | Securities purchased under agreements to resell | 127,765 | — | 125,543 | 2,186 | 127,729 | ||||||||||||||||||||||
Securities borrowed | Securities borrowed | 126,703 | 0 | 126,703 | 0 | 126,703 | Securities borrowed | 150,995 | — | 150,995 | — | 150,995 | ||||||||||||||||||||||
Customer and other receivables | Customer and other receivables | 97,370 | 0 | 94,071 | 3,218 | 97,289 | Customer and other receivables | 90,134 | — | 86,417 | 3,453 | 89,870 | ||||||||||||||||||||||
Loans1 | Loans1 | 166,059 | 0 | 21,535 | 145,503 | 167,038 | Loans1 | 196,260 | — | 24,140 | 170,269 | 194,409 | ||||||||||||||||||||||
Other assets | Other assets | 504 | 0 | 504 | 0 | 504 | Other assets | 509 | — | 509 | — | 509 | ||||||||||||||||||||||
Financial liabilities | Financial liabilities | Financial liabilities | ||||||||||||||||||||||||||||||||
Deposits | Deposits | $ | 317,686 | $ | 0 | $ | 318,107 | $ | 0 | $ | 318,107 | Deposits | $ | 358,827 | $ | — | $ | 358,993 | $ | — | $ | 358,993 | ||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | 56,617 | 0 | 56,666 | 0 | 56,666 | Securities sold under agreements to repurchase | 59,104 | — | 59,089 | — | 59,089 | ||||||||||||||||||||||
Securities loaned | Securities loaned | 9,574 | 0 | 9,575 | 0 | 9,575 | Securities loaned | 14,222 | — | 14,223 | — | 14,223 | ||||||||||||||||||||||
Other secured financings | Other secured financings | 4,658 | 0 | 4,661 | 0 | 4,661 | Other secured financings | 4,057�� | — | 4,059 | — | 4,059 | ||||||||||||||||||||||
Customer and other payables | Customer and other payables | 233,810 | 0 | 233,810 | 0 | 233,810 | Customer and other payables | 243,281 | — | 243,281 | — | 243,281 | ||||||||||||||||||||||
Borrowings | Borrowings | 148,634 | 0 | 155,115 | 5 | 155,120 | Borrowings | 153,854 | — | 155,443 | 4 | 155,447 | ||||||||||||||||||||||
Commitment Amount | Commitment Amount | |||||||||||||||||||||||||||||||||
Lending commitments2 | Lending commitments2 | $ | 137,508 | $ | 0 | $ | 680 | $ | 406 | $ | 1,086 | Lending commitments2 | $ | 141,421 | $ | — | $ | 1,162 | $ | 514 | $ | 1,676 |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||||||||
$ in millions | $ in millions | Level 1 | Level 2 | Level 3 | Total | $ in millions | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Financial assets | Financial assets | Financial assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 105,654 | $ | 105,654 | $ | 0 | $ | 0 | $ | 105,654 | Cash and cash equivalents | $ | 127,725 | $ | 127,725 | $ | — | $ | — | $ | 127,725 | ||||||||||||
Investment securities—HTM | Investment securities—HTM | 71,771 | 31,239 | 42,281 | 900 | 74,420 | Investment securities—HTM | 80,168 | 29,454 | 49,352 | 1,076 | 79,882 | ||||||||||||||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | 116,219 | 0 | 114,046 | 2,173 | 116,219 | Securities purchased under agreements to resell | 119,992 | — | 117,922 | 2,075 | 119,997 | ||||||||||||||||||||||
Securities borrowed | Securities borrowed | 112,391 | 0 | 112,392 | 0 | 112,392 | Securities borrowed | 129,713 | — | 129,713 | — | 129,713 | ||||||||||||||||||||||
Customer and other receivables | Customer and other receivables | 92,907 | 0 | 89,832 | 3,041 | 92,873 | Customer and other receivables | 91,664 | — | 88,091 | 3,442 | 91,533 | ||||||||||||||||||||||
Loans1 | Loans1 | 150,597 | 0 | 16,635 | 135,277 | 151,912 | Loans1 | 188,134 | — | 25,706 | 163,784 | 189,490 | ||||||||||||||||||||||
Other assets | Other assets | 485 | 0 | 485 | 0 | 485 | Other assets | 528 | — | 528 | — | 528 | ||||||||||||||||||||||
Financial liabilities | Financial liabilities | Financial liabilities | ||||||||||||||||||||||||||||||||
Deposits | Deposits | $ | 307,261 | $ | 0 | $ | 307,807 | $ | 0 | $ | 307,807 | Deposits | $ | 345,634 | $ | — | $ | 345,911 | $ | — | $ | 345,911 | ||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | 49,472 | 0 | 49,315 | 195 | 49,510 | Securities sold under agreements to repurchase | 61,397 | — | 61,419 | — | 61,419 | ||||||||||||||||||||||
Securities loaned | Securities loaned | 7,731 | 0 | 7,731 | 0 | 7,731 | Securities loaned | 12,299 | — | 12,296 | — | 12,296 | ||||||||||||||||||||||
Other secured financings | Other secured financings | 4,162 | 0 | 4,162 | 0 | 4,162 | Other secured financings | 4,908 | — | 4,910 | — | 4,910 | ||||||||||||||||||||||
Customer and other payables | Customer and other payables | 224,951 | 0 | 224,951 | 0 | 224,951 | Customer and other payables | 228,631 | — | 228,631 | — | 228,631 | ||||||||||||||||||||||
Borrowings | Borrowings | 143,378 | 0 | 150,824 | 5 | 150,829 | Borrowings | 156,787 | — | 162,154 | 4 | 162,158 | ||||||||||||||||||||||
Commitment Amount | Commitment Amount | |||||||||||||||||||||||||||||||||
Lending commitments2 | Lending commitments2 | $ | 125,498 | $ | 0 | $ | 709 | $ | 395 | $ | 1,104 | Lending commitments2 | $ | 133,519 | $ | — | $ | 890 | $ | 470 | $ | 1,360 |
March 2022 Form 10-Q | 42 |
Notes to Consolidated Financial Statements (Unaudited) |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Business Unit Responsible for Risk Management | Business Unit Responsible for Risk Management | Business Unit Responsible for Risk Management | ||||||||||||||
Equity | Equity | $ | 35,924 | $ | 33,952 | Equity | $ | 37,987 | $ | 37,046 | ||||||
Interest rates | Interest rates | 29,684 | 31,222 | Interest rates | 27,100 | 28,638 | ||||||||||
Commodities | Commodities | 6,373 | 5,078 | Commodities | 8,401 | 7,837 | ||||||||||
Credit | Credit | 1,211 | 1,344 | Credit | 1,310 | 1,347 | ||||||||||
Foreign exchange | Foreign exchange | 2,316 | 2,105 | Foreign exchange | 1,165 | 1,472 | ||||||||||
Total | Total | $ | 75,508 | $ | 73,701 | Total | $ | 75,963 | $ | 76,340 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||||||||||||
Trading revenues | Trading revenues | $ | (2,931) | $ | (3,439) | $ | (446) | $ | 8 | Trading revenues | $ | 4,655 | $ | 2,485 | ||||||||||||||
Interest expense | Interest expense | 84 | 81 | 157 | 164 | Interest expense | 72 | 73 | ||||||||||||||||||||
Net revenues1 | Net revenues1 | $ | (3,015) | $ | (3,520) | $ | (603) | $ | (156) | Net revenues1 | $ | 4,583 | $ | 2,412 |
Three Months Ended June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
$ in millions | Trading Revenues | OCI | Trading Revenues | OCI | ||||||||||
Loans and other debt1 | $ | 95 | $ | 0 | $ | (40) | $ | 0 | ||||||
Lending commitments | 1 | 0 | (1) | 0 | ||||||||||
Deposits | 0 | 10 | 0 | (63) | ||||||||||
Borrowings | (10) | 237 | (1) | (3,237) | ||||||||||
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
$ in millions | Trading Revenues | OCI | Trading Revenues | OCI | ||||||||||
Loans and other receivables1 | $ | 24 | $ | — | $ | 158 | $ | — | ||||||
Deposits | — | (7) | — | (1) | ||||||||||
Borrowings | — | 878 | (17) | 185 | ||||||||||
(Unaudited) | |||||||||||||||
Six Months Ended June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
$ in millions | Trading Revenues | OCI | Trading Revenues | OCI | ||||||||||
Loans and other debt1 | $ | 253 | $ | 0 | $ | (239) | $ | 0 | ||||||
Lending commitments | 1 | 0 | 1 | 0 | ||||||||||
Deposits | 0 | 9 | 0 | 9 | ||||||||||
Borrowings | (27) | 422 | (6) | 1,711 | ||||||||||
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Cumulative pre-tax DVA gain (loss) recognized in AOCI | Cumulative pre-tax DVA gain (loss) recognized in AOCI | $ | (2,926) | $ | (3,357) | Cumulative pre-tax DVA gain (loss) recognized in AOCI | $ | (1,568) | $ | (2,439) |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Loans and other debt2 | $ | 13,124 | $ | 14,042 | ||||||||||||
Loans and other receivables2 | Loans and other receivables2 | $ | 12,360 | $ | 12,633 | |||||||||||
Nonaccrual loans2 | Nonaccrual loans2 | 10,883 | 11,551 | Nonaccrual loans2 | 9,608 | 9,999 | ||||||||||
Borrowings3 | Borrowings3 | (2,298) | (3,773) | Borrowings3 | 704 | (2,106) |
$ in millions | At June 30, 2021 | At December 31, 2020 | ||||||
Nonaccrual loans | $ | 770 | $ | 1,407 | ||||
Nonaccrual loans 90 or more days past due | $ | 203 | $ | 239 |
$ in millions | At March 31, 2022 | At December 31, 2021 | ||||||
Nonaccrual loans | $ | 908 | $ | 989 | ||||
Nonaccrual loans 90 or more days past due | 264 | 363 |
Assets at June 30, 2021 | ||||||||||||||
$ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 654 | $ | 11 | $ | 0 | $ | 665 | ||||||
Foreign exchange | 219 | 18 | 0 | 237 | ||||||||||
Total | 873 | 29 | 0 | 902 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit | 1 | 16 | 0 | 17 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 168,475 | 7,702 | 326 | 176,503 | ||||||||||
Credit | 5,356 | 2,936 | 0 | 8,292 | ||||||||||
Foreign exchange | 69,108 | 1,425 | 76 | 70,609 | ||||||||||
Equity | 32,308 | 0 | 38,049 | 70,357 | ||||||||||
Commodity and other | 18,601 | 0 | 6,464 | 25,065 | ||||||||||
Total | 293,849 | 12,079 | 44,915 | 350,843 | ||||||||||
Total gross derivatives | $ | 294,722 | $ | 12,108 | $ | 44,915 | $ | 351,745 | ||||||
Amounts offset | ||||||||||||||
Counterparty netting | (212,181) | (10,000) | (41,074) | (263,255) | ||||||||||
Cash collateral netting | (45,922) | (1,613) | 0 | (47,535) | ||||||||||
Total in Trading assets | $ | 36,619 | $ | 495 | $ | 3,841 | $ | 40,955 | ||||||
Amounts not offset1 | ||||||||||||||
Financial instruments collateral | (12,680) | 0 | 0 | (12,680) | ||||||||||
Net amounts | $ | 23,939 | $ | 495 | $ | 3,841 | $ | 28,275 | ||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | 4,132 | ||||||||||||
Liabilities at June 30, 2021 | Assets at March 31, 2022 | |||||||||||||||||||||||||||
$ in millions | $ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | $ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||||||||||
Designated as accounting hedges | Designated as accounting hedges | Designated as accounting hedges | ||||||||||||||||||||||||||
Interest rate | Interest rate | $ | 0 | $ | 5 | $ | 0 | $ | 5 | Interest rate | $ | 235 | $ | 3 | $ | — | $ | 238 | ||||||||||
Foreign exchange | Foreign exchange | 5 | 15 | 0 | 20 | Foreign exchange | 202 | 14 | — | 216 | ||||||||||||||||||
Total | Total | 5 | 20 | 0 | 25 | Total | 437 | 17 | — | 454 | ||||||||||||||||||
Not designated as accounting hedges | Not designated as accounting hedges | Not designated as accounting hedges | ||||||||||||||||||||||||||
Economic loan hedges | ||||||||||||||||||||||||||||
Economic hedges of loans | Economic hedges of loans | |||||||||||||||||||||||||||
Credit | Credit | 15 | 246 | 0 | 261 | Credit | 2 | 12 | — | 14 | ||||||||||||||||||
Other derivatives | Other derivatives | Other derivatives | ||||||||||||||||||||||||||
Interest rate | Interest rate | 154,804 | 6,154 | 411 | 161,369 | Interest rate | 152,234 | 20,630 | 1,525 | 174,389 | ||||||||||||||||||
Credit | Credit | 5,428 | 3,504 | 0 | 8,932 | Credit | 7,494 | 3,998 | — | 11,492 | ||||||||||||||||||
Foreign exchange | Foreign exchange | 64,788 | 1,333 | 97 | 66,218 | Foreign exchange | 97,624 | 3,389 | 66 | 101,079 | ||||||||||||||||||
Equity | Equity | 43,053 | 0 | 39,240 | 82,293 | Equity | 27,669 | — | 38,240 | 65,909 | ||||||||||||||||||
Commodity and other | Commodity and other | 15,510 | 0 | 6,470 | 21,980 | Commodity and other | 34,517 | — | 14,789 | 49,306 | ||||||||||||||||||
Total | Total | 283,598 | 11,237 | 46,218 | 341,053 | Total | 319,540 | 28,029 | 54,620 | 402,189 | ||||||||||||||||||
Total gross derivatives | Total gross derivatives | $ | 283,603 | $ | 11,257 | $ | 46,218 | $ | 341,078 | Total gross derivatives | $ | 319,977 | $ | 28,046 | $ | 54,620 | $ | 402,643 | ||||||||||
Amounts offset | Amounts offset | Amounts offset | ||||||||||||||||||||||||||
Counterparty netting | Counterparty netting | (212,181) | (10,000) | (41,074) | (263,255) | Counterparty netting | (222,597) | (25,328) | (50,605) | (298,530) | ||||||||||||||||||
Cash collateral netting | Cash collateral netting | (38,774) | (958) | 0 | (39,732) | Cash collateral netting | (44,621) | (1,611) | — | (46,232) | ||||||||||||||||||
Total in Trading liabilities | $ | 32,648 | $ | 299 | $ | 5,144 | $ | 38,091 | ||||||||||||||||||||
Total in Trading assets | Total in Trading assets | $ | 52,759 | $ | 1,107 | $ | 4,015 | $ | 57,881 | |||||||||||||||||||
Amounts not offset1 | Amounts not offset1 | Amounts not offset1 | ||||||||||||||||||||||||||
Financial instruments collateral | Financial instruments collateral | (6,634) | 0 | (1,103) | (7,737) | Financial instruments collateral | (18,000) | — | — | (18,000) | ||||||||||||||||||
Net amounts | Net amounts | $ | 26,014 | $ | 299 | $ | 4,041 | $ | 30,354 | Net amounts | $ | 34,759 | $ | 1,107 | $ | 4,015 | $ | 39,881 | ||||||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | 7,394 | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | 10,704 |
43 |
Notes to Consolidated Financial Statements (Unaudited) |
Assets at December 31, 2020 | Liabilities at March 31, 2022 | |||||||||||||||||||||||||||
$ in millions | $ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | $ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||||||||||
Designated as accounting hedges | Designated as accounting hedges | Designated as accounting hedges | ||||||||||||||||||||||||||
Interest rate | Interest rate | $ | 946 | $ | 2 | $ | 0 | $ | 948 | Interest rate | $ | 51 | $ | — | $ | — | $ | 51 | ||||||||||
Foreign exchange | Foreign exchange | 5 | 2 | 0 | 7 | Foreign exchange | 59 | 36 | — | 95 | ||||||||||||||||||
Total | Total | 951 | 4 | 0 | 955 | Total | 110 | 36 | — | 146 | ||||||||||||||||||
Not designated as accounting hedges | Not designated as accounting hedges | Not designated as accounting hedges | ||||||||||||||||||||||||||
Economic loan hedges | ||||||||||||||||||||||||||||
Credit1 | 2 | 51 | 0 | 53 | ||||||||||||||||||||||||
Economic hedges of loans | Economic hedges of loans | |||||||||||||||||||||||||||
Credit | Credit | 15 | 308 | — | 323 | |||||||||||||||||||||||
Other derivatives | Other derivatives | Other derivatives | ||||||||||||||||||||||||||
Interest rate | Interest rate | 221,895 | 10,343 | 300 | 232,538 | Interest rate | 142,935 | 21,368 | 988 | 165,291 | ||||||||||||||||||
Credit1 | 5,341 | 2,147 | 0 | 7,488 | ||||||||||||||||||||||||
Credit | Credit | 7,029 | 4,150 | — | 11,179 | |||||||||||||||||||||||
Foreign exchange | Foreign exchange | 92,334 | 1,639 | 79 | 94,052 | Foreign exchange | 90,134 | 2,970 | 96 | 93,200 | ||||||||||||||||||
Equity | Equity | 34,278 | 0 | 34,166 | 68,444 | Equity | 34,116 | — | 39,782 | 73,898 | ||||||||||||||||||
Commodity and other | Commodity and other | 11,095 | 0 | 3,554 | 14,649 | Commodity and other | 27,290 | — | 15,548 | 42,838 | ||||||||||||||||||
Total | Total | 364,945 | 14,180 | 38,099 | 417,224 | Total | 301,519 | 28,796 | 56,414 | 386,729 | ||||||||||||||||||
Total gross derivatives | Total gross derivatives | $ | 365,896 | $ | 14,184 | $ | 38,099 | $ | 418,179 | Total gross derivatives | $ | 301,629 | $ | 28,832 | $ | 56,414 | $ | 386,875 | ||||||||||
Amounts offset | Amounts offset | Amounts offset | ||||||||||||||||||||||||||
Counterparty netting | Counterparty netting | (276,682) | (11,601) | (35,260) | (323,543) | Counterparty netting | (222,597) | (25,328) | (50,605) | (298,530) | ||||||||||||||||||
Cash collateral netting | Cash collateral netting | (54,921) | (1,865) | 0 | (56,786) | Cash collateral netting | (44,557) | (1,431) | — | (45,988) | ||||||||||||||||||
Total in Trading assets | $ | 34,293 | $ | 718 | $ | 2,839 | $ | 37,850 | ||||||||||||||||||||
Amounts not offset2 | ||||||||||||||||||||||||||||
Total in Trading liabilities | Total in Trading liabilities | $ | 34,475 | $ | 2,073 | $ | 5,809 | $ | 42,357 | |||||||||||||||||||
Amounts not offset1 | Amounts not offset1 | |||||||||||||||||||||||||||
Financial instruments collateral | Financial instruments collateral | (13,319) | 0 | 0 | (13,319) | Financial instruments collateral | (3,641) | — | (1,543) | (5,184) | ||||||||||||||||||
Other cash collateral | (391) | 0 | 0 | (391) | ||||||||||||||||||||||||
Net amounts | Net amounts | $ | 20,583 | $ | 718 | $ | 2,839 | $ | 24,140 | Net amounts | $ | 30,834 | $ | 2,073 | $ | 4,266 | $ | 37,173 | ||||||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | 3,743 | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | 8,824 |
Liabilities at December 31, 2020 | Assets at December 31, 2021 | |||||||||||||||||||||||||||
$ in millions | $ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | $ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||||||||||
Designated as accounting hedges | Designated as accounting hedges | Designated as accounting hedges | ||||||||||||||||||||||||||
Interest rate | Interest rate | $ | 0 | $ | 19 | $ | 0 | $ | 19 | Interest rate | $ | 594 | $ | 1 | $ | — | $ | 595 | ||||||||||
Foreign exchange | Foreign exchange | 291 | 99 | 0 | 390 | Foreign exchange | 191 | 6 | — | 197 | ||||||||||||||||||
Total | Total | 291 | 118 | 0 | 409 | Total | 785 | 7 | — | 792 | ||||||||||||||||||
Not designated as accounting hedges | Not designated as accounting hedges | Not designated as accounting hedges | ||||||||||||||||||||||||||
Economic loan hedges | ||||||||||||||||||||||||||||
Credit1 | 18 | 177 | 0 | 195 | ||||||||||||||||||||||||
Economic hedges of loans | Economic hedges of loans | |||||||||||||||||||||||||||
Credit | Credit | — | 15 | — | 15 | |||||||||||||||||||||||
Other derivatives | Other derivatives | Other derivatives | ||||||||||||||||||||||||||
Interest rate | Interest rate | 210,015 | 7,965 | 639 | 218,619 | Interest rate | 147,585 | 7,002 | 383 | 154,970 | ||||||||||||||||||
Credit1 | 5,275 | 2,682 | 0 | 7,957 | ||||||||||||||||||||||||
Credit | Credit | 5,749 | 3,186 | — | 8,935 | |||||||||||||||||||||||
Foreign exchange | Foreign exchange | 92,975 | 1,500 | 43 | 94,518 | Foreign exchange | 73,276 | 1,219 | 39 | 74,534 | ||||||||||||||||||
Equity | Equity | 49,943 | 0 | 36,585 | 86,528 | Equity | 28,877 | — | 41,455 | 70,332 | ||||||||||||||||||
Commodity and other | Commodity and other | 8,831 | 0 | 3,359 | 12,190 | Commodity and other | 22,175 | — | 5,538 | 27,713 | ||||||||||||||||||
Total | Total | 367,057 | 12,324 | 40,626 | 420,007 | Total | 277,662 | 11,422 | 47,415 | 336,499 | ||||||||||||||||||
Total gross derivatives | Total gross derivatives | $ | 367,348 | $ | 12,442 | $ | 40,626 | $ | 420,416 | Total gross derivatives | $ | 278,447 | $ | 11,429 | $ | 47,415 | $ | 337,291 | ||||||||||
Amounts offset | Amounts offset | Amounts offset | ||||||||||||||||||||||||||
Counterparty netting | Counterparty netting | (276,682) | (11,601) | (35,260) | (323,543) | Counterparty netting | (201,729) | (9,818) | (42,883) | (254,430) | ||||||||||||||||||
Cash collateral netting | Cash collateral netting | (51,112) | (823) | 0 | (51,935) | Cash collateral netting | (43,495) | (1,212) | — | (44,707) | ||||||||||||||||||
Total in Trading liabilities | $ | 39,554 | $ | 18 | $ | 5,366 | $ | 44,938 | ||||||||||||||||||||
Amounts not offset2 | ||||||||||||||||||||||||||||
Total in Trading assets | Total in Trading assets | $ | 33,223 | $ | 399 | $ | 4,532 | $ | 38,154 | |||||||||||||||||||
Amounts not offset1 | Amounts not offset1 | |||||||||||||||||||||||||||
Financial instruments collateral | Financial instruments collateral | (10,598) | 0 | (1,520) | (12,118) | Financial instruments collateral | (10,457) | — | — | (10,457) | ||||||||||||||||||
Other cash collateral | (62) | (3) | 0 | (65) | ||||||||||||||||||||||||
Net amounts | Net amounts | $ | 28,894 | $ | 15 | $ | 3,846 | $ | 32,755 | Net amounts | $ | 22,766 | $ | 399 | $ | 4,532 | $ | 27,697 | ||||||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | 6,746 | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | 6,725 |
Liabilities at December 31, 2021 | ||||||||||||||
$ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 86 | $ | 1 | $ | — | $ | 87 | ||||||
Foreign exchange | 57 | 50 | — | 107 | ||||||||||
Total | 143 | 51 | — | 194 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic hedges of loans | ||||||||||||||
Credit | 17 | 412 | — | 429 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 140,770 | 6,112 | 233 | 147,115 | ||||||||||
Credit | 5,609 | 3,463 | — | 9,072 | ||||||||||
Foreign exchange | 71,851 | 1,196 | 41 | 73,088 | ||||||||||
Equity | 39,597 | — | 41,081 | 80,678 | ||||||||||
Commodity and other | 17,188 | — | 5,740 | 22,928 | ||||||||||
Total | 275,032 | 11,183 | 47,095 | 333,310 | ||||||||||
Total gross derivatives | $ | 275,175 | $ | 11,234 | $ | 47,095 | $ | 333,504 | ||||||
Amounts offset | ||||||||||||||
Counterparty netting | (201,729) | (9,818) | (42,883) | (254,430) | ||||||||||
Cash collateral netting | (43,305) | (1,201) | — | (44,506) | ||||||||||
Total in Trading liabilities | $ | 30,141 | $ | 215 | $ | 4,212 | $ | 34,568 | ||||||
Amounts not offset1 | ||||||||||||||
Financial instruments collateral | (5,866) | (8) | (39) | (5,913) | ||||||||||
Net amounts | $ | 24,275 | $ | 207 | $ | 4,173 | $ | 28,655 | ||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | 6,194 |
Assets at June 30, 2021 | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 4 | $ | 109 | $ | 0 | $ | 113 | ||||||
Foreign exchange | 13 | 2 | 0 | 15 | ||||||||||
Total | 17 | 111 | 0 | 128 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit | 0 | 0 | 0 | 0 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 4,095 | 7,338 | 576 | 12,009 | ||||||||||
Credit | 188 | 107 | 0 | 295 | ||||||||||
Foreign exchange | 3,494 | 97 | 12 | 3,603 | ||||||||||
Equity | 483 | 0 | 410 | 893 | ||||||||||
Commodity and other | 128 | 0 | 77 | 205 | ||||||||||
Total | 8,388 | 7,542 | 1,075 | 17,005 | ||||||||||
Total gross derivatives | $ | 8,405 | $ | 7,653 | $ | 1,075 | $ | 17,133 | ||||||
Liabilities at June 30, 2021 | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 0 | $ | 90 | $ | 0 | $ | 90 | ||||||
Foreign exchange | 1 | 1 | 0 | 2 | ||||||||||
Total | 1 | 91 | 0 | 92 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit | 0 | 7 | 0 | 7 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 4,084 | 7,156 | 523 | 11,763 | ||||||||||
Credit | 197 | 113 | 0 | 310 | ||||||||||
Foreign exchange | 3,425 | 90 | 23 | 3,538 | ||||||||||
Equity | 535 | 0 | 766 | 1,301 | ||||||||||
Commodity and other | 118 | 0 | 76 | 194 | ||||||||||
Total | 8,359 | 7,366 | 1,388 | 17,113 | ||||||||||
Total gross derivatives | $ | 8,360 | $ | 7,457 | $ | 1,388 | $ | 17,205 | ||||||
Assets at December 31, 2020 | Assets at March 31, 2022 | |||||||||||||||||||||||||||
$ in billions | $ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | $ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||||||||||
Designated as accounting hedges | Designated as accounting hedges | Designated as accounting hedges | ||||||||||||||||||||||||||
Interest rate | Interest rate | $ | 6 | $ | 123 | $ | 0 | $ | 129 | Interest rate | $ | 4 | $ | 73 | $ | — | $ | 77 | ||||||||||
Foreign exchange | Foreign exchange | 2 | 0 | 0 | 2 | Foreign exchange | 9 | 1 | — | 10 | ||||||||||||||||||
Total | Total | 8 | 123 | 0 | 131 | Total | 13 | 74 | — | 87 | ||||||||||||||||||
Not designated as accounting hedges | Not designated as accounting hedges | Not designated as accounting hedges | ||||||||||||||||||||||||||
Economic loan hedges | ||||||||||||||||||||||||||||
Credit1 | 0 | 1 | 0 | 1 | ||||||||||||||||||||||||
Economic hedges of loans | Economic hedges of loans | |||||||||||||||||||||||||||
Credit | Credit | — | 1 | — | 1 | |||||||||||||||||||||||
Other derivatives | Other derivatives | Other derivatives | ||||||||||||||||||||||||||
Interest rate | Interest rate | 3,847 | 6,946 | 409 | 11,202 | Interest rate | 3,626 | 9,434 | 758 | 13,818 | ||||||||||||||||||
Credit1 | 140 | 87 | 0 | 227 | ||||||||||||||||||||||||
Credit | Credit | 231 | 150 | — | 381 | |||||||||||||||||||||||
Foreign exchange | Foreign exchange | 3,046 | 103 | 10 | 3,159 | Foreign exchange | 3,806 | 146 | 10 | 3,962 | ||||||||||||||||||
Equity | Equity | 444 | 0 | 367 | 811 | Equity | 516 | — | 419 | 935 | ||||||||||||||||||
Commodity and other | Commodity and other | 107 | 0 | 68 | 175 | Commodity and other | 171 | — | 75 | 246 | ||||||||||||||||||
Total | Total | 7,584 | 7,137 | 854 | 15,575 | Total | 8,350 | 9,731 | 1,262 | 19,343 | ||||||||||||||||||
Total gross derivatives | Total gross derivatives | $ | 7,592 | $ | 7,260 | $ | 854 | $ | 15,706 | Total gross derivatives | $ | 8,363 | $ | 9,805 | $ | 1,262 | $ | 19,430 |
Notes to Consolidated Financial Statements (Unaudited) |
Liabilities at December 31, 2020 | Liabilities at March 31, 2022 | |||||||||||||||||||||||||||
$ in billions | $ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | $ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||||||||||
Designated as accounting hedges | Designated as accounting hedges | Designated as accounting hedges | ||||||||||||||||||||||||||
Interest rate | Interest rate | $ | 0 | $ | 80 | $ | 0 | $ | 80 | Interest rate | $ | — | $ | 128 | $ | — | $ | 128 | ||||||||||
Foreign exchange | Foreign exchange | 11 | 3 | 0 | 14 | Foreign exchange | 4 | 3 | — | 7 | ||||||||||||||||||
Total | Total | 11 | 83 | 0 | 94 | Total | 4 | 131 | — | 135 | ||||||||||||||||||
Not designated as accounting hedges | Not designated as accounting hedges | Not designated as accounting hedges | ||||||||||||||||||||||||||
Economic loan hedges | ||||||||||||||||||||||||||||
Credit1 | 1 | 5 | 0 | 6 | ||||||||||||||||||||||||
Economic hedges of loans | Economic hedges of loans | |||||||||||||||||||||||||||
Credit | Credit | 1 | 10 | — | 11 | |||||||||||||||||||||||
Other derivatives | Other derivatives | Other derivatives | ||||||||||||||||||||||||||
Interest rate | Interest rate | 4,000 | 6,915 | 511 | 11,426 | Interest rate | 3,577 | 9,060 | 629 | 13,266 | ||||||||||||||||||
Credit1 | 142 | 93 | 0 | 235 | ||||||||||||||||||||||||
Credit | Credit | 231 | 146 | — | 377 | |||||||||||||||||||||||
Foreign exchange | Foreign exchange | 3,180 | 102 | 11 | 3,293 | Foreign exchange | 3,690 | 139 | 19 | 3,848 | ||||||||||||||||||
Equity | Equity | 474 | 0 | 591 | 1,065 | Equity | 547 | — | 770 | 1,317 | ||||||||||||||||||
Commodity and other | Commodity and other | 93 | 0 | 68 | 161 | Commodity and other | 129 | — | 91 | 220 | ||||||||||||||||||
Total | Total | 7,890 | 7,115 | 1,181 | 16,186 | Total | 8,175 | 9,355 | 1,509 | 19,039 | ||||||||||||||||||
Total gross derivatives | Total gross derivatives | $ | 7,901 | $ | 7,198 | $ | 1,181 | $ | 16,280 | Total gross derivatives | $ | 8,179 | $ | 9,486 | $ | 1,509 | $ | 19,174 |
Assets at December 31, 2021 | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 4 | $ | 104 | $ | — | $ | 108 | ||||||
Foreign exchange | 8 | 1 | — | 9 | ||||||||||
Total | 12 | 105 | — | 117 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic hedges of loans | ||||||||||||||
Credit | — | — | — | — | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 3,488 | 7,082 | 570 | 11,140 | ||||||||||
Credit | 216 | 105 | — | 321 | ||||||||||
Foreign exchange | 3,386 | 95 | 10 | 3,491 | ||||||||||
Equity | 495 | — | 407 | 902 | ||||||||||
Commodity and other | 139 | — | 73 | 212 | ||||||||||
Total | 7,724 | 7,282 | 1,060 | 16,066 | ||||||||||
Total gross derivatives | $ | 7,736 | $ | 7,387 | $ | 1,060 | $ | 16,183 |
Liabilities at December 31, 2021 | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | — | $ | 99 | $ | — | $ | 99 | ||||||
Foreign exchange | 5 | 3 | — | 8 | ||||||||||
Total | 5 | 102 | — | 107 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic hedges of loans | ||||||||||||||
Credit | 1 | 12 | — | 13 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 3,827 | 6,965 | 445 | 11,237 | ||||||||||
Credit | 225 | 106 | — | 331 | ||||||||||
Foreign exchange | 3,360 | 88 | 12 | 3,460 | ||||||||||
Equity | 552 | — | 735 | 1,287 | ||||||||||
Commodity and other | 110 | — | 81 | 191 | ||||||||||
Total | 8,075 | 7,171 | 1,273 | 16,519 | ||||||||||
Total gross derivatives | $ | 8,080 | $ | 7,273 | $ | 1,273 | $ | 16,626 |
Three Months Ended | Six Months Ended | Three Months Ended | ||||||||||||||||||||||||||
June 30, | March 31, | |||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||||||||||||
Fair value hedges—Recognized in Interest income | Fair value hedges—Recognized in Interest income | Fair value hedges—Recognized in Interest income | ||||||||||||||||||||||||||
Interest rate contracts | Interest rate contracts | $ | (331) | $ | (16) | $ | 500 | $ | (80) | Interest rate contracts | $ | 795 | $ | 831 | ||||||||||||||
Investment Securities—AFS | Investment Securities—AFS | 345 | 23 | (427) | 89 | Investment Securities—AFS | (751) | (772) | ||||||||||||||||||||
Fair value hedges—Recognized in Interest expense | Fair value hedges—Recognized in Interest expense | Fair value hedges—Recognized in Interest expense | ||||||||||||||||||||||||||
Interest rate contracts | Interest rate contracts | $ | 1,238 | $ | 245 | $ | (2,870) | $ | 6,912 | Interest rate contracts | $ | (6,233) | $ | (4,108) | ||||||||||||||
Deposits | Deposits | 22 | 46 | 58 | (215) | Deposits | 88 | 36 | ||||||||||||||||||||
Borrowings | Borrowings | (1,270) | (327) | 2,751 | (6,759) | Borrowings | 6,155 | 4,021 | ||||||||||||||||||||
Net investment hedges—Foreign exchange contracts | Net investment hedges—Foreign exchange contracts | Net investment hedges—Foreign exchange contracts | ||||||||||||||||||||||||||
Recognized in OCI | Recognized in OCI | $ | (106) | $ | (96) | $ | 299 | $ | 314 | Recognized in OCI | $ | 139 | $ | 405 | ||||||||||||||
Forward points excluded from hedge effectiveness testing—Recognized in Interest income | Forward points excluded from hedge effectiveness testing—Recognized in Interest income | (14) | (8) | (13) | 25 | Forward points excluded from hedge effectiveness testing—Recognized in Interest income | (41) | 1 |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Investment Securities—AFS | Investment Securities—AFS | Investment Securities—AFS | ||||||||||||||
Amortized cost basis currently or previously hedged | Amortized cost basis currently or previously hedged | $ | 18,009 | $ | 16,288 | Amortized cost basis currently or previously hedged | $ | 11,039 | $ | 17,902 | ||||||
Basis adjustments included in amortized cost1 | Basis adjustments included in amortized cost1 | $ | (371) | $ | (39) | Basis adjustments included in amortized cost1 | $ | (840) | $ | (591) | ||||||
Deposits | Deposits | Deposits | ||||||||||||||
Carrying amount currently or previously hedged | Carrying amount currently or previously hedged | $ | 6,316 | $ | 15,059 | Carrying amount currently or previously hedged | $ | 4,807 | $ | 6,279 | ||||||
Basis adjustments included in carrying amount1 | Basis adjustments included in carrying amount1 | $ | 35 | $ | 93 | Basis adjustments included in carrying amount1 | $ | (83) | $ | 5 | ||||||
Borrowings | Borrowings | Borrowings | ||||||||||||||
Carrying amount currently or previously hedged | Carrying amount currently or previously hedged | $ | 114,420 | $ | 114,349 | Carrying amount currently or previously hedged | $ | 122,770 | $ | 122,919 | ||||||
Basis adjustments included in carrying amount—Outstanding hedges | Basis adjustments included in carrying amount—Outstanding hedges | $ | 3,799 | $ | 6,575 | Basis adjustments included in carrying amount—Outstanding hedges | $ | (3,831) | $ | 2,324 | ||||||
Basis adjustments included in carrying amount—Terminated hedges | Basis adjustments included in carrying amount—Terminated hedges | $ | (757) | $ | (756) | Basis adjustments included in carrying amount—Terminated hedges | $ | (736) | $ | (743) |
Three Months Ended | Six Months Ended | Three Months Ended | ||||||||||||||||||||||||||
June 30, | March 31, | |||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||||||||||||
Recognized in Other revenues | Recognized in Other revenues | Recognized in Other revenues | ||||||||||||||||||||||||||
Credit contracts1 | Credit contracts1 | $ | (44) | $ | (120) | $ | (149) | $ | 135 | Credit contracts1 | $ | 51 | $ | (105) |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Net derivative liabilities with credit risk-related contingent features | Net derivative liabilities with credit risk-related contingent features | $ | 20,227 | $ | 30,421 | Net derivative liabilities with credit risk-related contingent features | $ | 22,090 | $ | 20,548 | ||||||
Collateral posted | Collateral posted | 14,954 | 23,842 | Collateral posted | 14,470 | 14,789 |
45 | March 2022 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
$ in millions | At | ||||
One-notch downgrade | $ | ||||
Two-notch downgrade | |||||
Bilateral downgrade agreements included in the amounts above1 | $ |
(Unaudited) |
Years to Maturity at June 30, 2021 | Years to Maturity at March 31, 2022 | |||||||||||||||||||||||||||||||||
$ in billions | $ in billions | < 1 | 1-3 | 3-5 | Over 5 | Total | $ in billions | < 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||||||||||||
Single-name CDS | Single-name CDS | Single-name CDS | ||||||||||||||||||||||||||||||||
Investment grade | Investment grade | $ | 9 | $ | 23 | $ | 30 | $ | 9 | $ | 71 | Investment grade | $ | 11 | $ | 27 | $ | 30 | $ | 13 | $ | 81 | ||||||||||||
Non-investment grade | Non-investment grade | 6 | 12 | 16 | 2 | 36 | Non-investment grade | 5 | 13 | 17 | 5 | 40 | ||||||||||||||||||||||
Total | Total | $ | 15 | $ | 35 | $ | 46 | $ | 11 | $ | 107 | Total | $ | 16 | $ | 40 | $ | 47 | $ | 18 | $ | 121 | ||||||||||||
Index and basket CDS | Index and basket CDS | Index and basket CDS | ||||||||||||||||||||||||||||||||
Investment grade | Investment grade | $ | 2 | $ | 7 | $ | 89 | $ | 16 | $ | 114 | Investment grade | $ | 2 | $ | 11 | $ | 107 | $ | 48 | $ | 168 | ||||||||||||
Non-investment grade | Non-investment grade | 6 | 15 | 37 | 15 | 73 | Non-investment grade | 9 | 16 | 37 | 24 | 86 | ||||||||||||||||||||||
Total | Total | $ | 8 | $ | 22 | $ | 126 | $ | 31 | $ | 187 | Total | $ | 11 | $ | 27 | $ | 144 | $ | 72 | $ | 254 | ||||||||||||
Total CDS sold | Total CDS sold | $ | 23 | $ | 57 | $ | 172 | $ | 42 | $ | 294 | Total CDS sold | $ | 27 | $ | 67 | $ | 191 | $ | 90 | $ | 375 | ||||||||||||
Other credit contracts | Other credit contracts | 1 | 0 | 0 | 0 | 1 | Other credit contracts | — | — | — | — | — | ||||||||||||||||||||||
Total credit protection sold | Total credit protection sold | $ | 24 | $ | 57 | $ | 172 | $ | 42 | $ | 295 | Total credit protection sold | $ | 27 | $ | 67 | $ | 191 | $ | 90 | $ | 375 | ||||||||||||
CDS protection sold with identical protection purchased | CDS protection sold with identical protection purchased | $ | 248 | CDS protection sold with identical protection purchased | $ | 331 |
Years to Maturity at December 31, 2020 | Years to Maturity at December 31, 2021 | |||||||||||||||||||||||||||||||||
$ in billions | $ in billions | < 1 | 1-3 | 3-5 | Over 5 | Total | $ in billions | < 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||||||||||||
Single-name CDS | Single-name CDS | Single-name CDS | ||||||||||||||||||||||||||||||||
Investment grade | Investment grade | $ | 9 | $ | 19 | $ | 32 | $ | 9 | $ | 69 | Investment grade | $ | 10 | $ | 26 | $ | 29 | $ | 9 | $ | 74 | ||||||||||||
Non-investment grade | Non-investment grade | 7 | 10 | 17 | 2 | 36 | Non-investment grade | 5 | 13 | 17 | 2 | 37 | ||||||||||||||||||||||
Total | Total | $ | 16 | $ | 29 | $ | 49 | $ | 11 | $ | 105 | Total | $ | 15 | $ | 39 | $ | 46 | $ | 11 | $ | 111 | ||||||||||||
Index and basket CDS | Index and basket CDS | Index and basket CDS | ||||||||||||||||||||||||||||||||
Investment grade | Investment grade | $ | 2 | $ | 5 | $ | 39 | $ | 14 | $ | 60 | Investment grade | $ | 2 | $ | 11 | $ | 106 | $ | 15 | $ | 134 | ||||||||||||
Non-investment grade | Non-investment grade | 6 | 9 | 29 | 14 | 58 | Non-investment grade | 9 | 14 | 37 | 12 | 72 | ||||||||||||||||||||||
Total | Total | $ | 8 | $ | 14 | $ | 68 | $ | 28 | $ | 118 | Total | $ | 11 | $ | 25 | $ | 143 | $ | 27 | $ | 206 | ||||||||||||
Total CDS sold | Total CDS sold | $ | 24 | $ | 43 | $ | 117 | $ | 39 | $ | 223 | Total CDS sold | $ | 26 | $ | 64 | $ | 189 | $ | 38 | $ | 317 | ||||||||||||
Other credit contracts | Other credit contracts | 0 | 0 | 0 | 0 | 0 | Other credit contracts | — | — | — | — | — | ||||||||||||||||||||||
Total credit protection sold | Total credit protection sold | $ | 24 | $ | 43 | $ | 117 | $ | 39 | $ | 223 | Total credit protection sold | $ | 26 | $ | 64 | $ | 189 | $ | 38 | $ | 317 | ||||||||||||
CDS protection sold with identical protection purchased | CDS protection sold with identical protection purchased | $ | 196 | CDS protection sold with identical protection purchased | $ | 278 |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Single-name CDS | Single-name CDS | Single-name CDS | ||||||||||||||
Investment grade | Investment grade | $ | 1,495 | $ | 1,230 | Investment grade | $ | 1,309 | $ | 1,428 | ||||||
Non-investment grade | Non-investment grade | 147 | (22) | Non-investment grade | (1,805) | (370) | ||||||||||
Total | Total | $ | 1,642 | $ | 1,208 | Total | $ | (496) | $ | 1,058 | ||||||
Index and basket CDS | Index and basket CDS | Index and basket CDS | ||||||||||||||
Investment grade | Investment grade | $ | 1,331 | $ | 843 | Investment grade | $ | 1,422 | $ | 1,393 | ||||||
Non-investment grade | Non-investment grade | (617) | (824) | Non-investment grade | (1,243) | (650) | ||||||||||
Total | Total | $ | 714 | $ | 19 | Total | $ | 179 | $ | 743 | ||||||
Total CDS sold | Total CDS sold | $ | 2,356 | $ | 1,227 | Total CDS sold | $ | (317) | $ | 1,801 | ||||||
Other credit contracts | Other credit contracts | (3) | (4) | Other credit contracts | (3) | (3) | ||||||||||
Total credit protection sold | Total credit protection sold | $ | 2,353 | $ | 1,223 | Total credit protection sold | $ | (320) | $ | 1,798 |
Notional | Notional | |||||||||||||||
$ in billions | $ in billions | At June 30, 2021 | At December 31, 2020 | $ in billions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Single name | Single name | $ | 118 | $ | 116 | Single name | $ | 138 | $ | 126 | ||||||
Index and basket | Index and basket | 185 | 116 | Index and basket | 235 | 204 | ||||||||||
Tranched index and basket | Tranched index and basket | 15 | 14 | Tranched index and basket | 22 | 18 | ||||||||||
Total | Total | $ | 318 | $ | 246 | Total | $ | 395 | $ | 348 |
Fair Value Asset (Liability) | Fair Value Asset (Liability) | |||||||||||||||
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Single name | Single name | $ | (1,906) | $ | (1,452) | Single name | $ | 433 | $ | (1,338) | ||||||
Index and basket | Index and basket | (999) | (57) | Index and basket | 228 | (563) | ||||||||||
Tranched index and basket | Tranched index and basket | (335) | (329) | Tranched index and basket | (340) | (451) | ||||||||||
Total | Total | $ | (3,240) | $ | (1,838) | Total | $ | 321 | $ | (2,352) |
At June 30, 2021 | ||||||||||||||
$ in millions | Amortized Cost1 | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||
AFS securities | ||||||||||||||
U.S. Treasury securities | $ | 45,594 | $ | 654 | $ | 38 | $ | 46,210 | ||||||
U.S. agency securities2 | 28,855 | 422 | 136 | 29,141 | ||||||||||
Agency CMBS | 15,467 | 424 | 47 | 15,844 | ||||||||||
State and municipal securities | 230 | 31 | 5 | 256 | ||||||||||
FFELP student loan ABS3 | 1,769 | 13 | 11 | 1,771 | ||||||||||
Total AFS securities | 91,915 | 1,544 | 237 | 93,222 | ||||||||||
HTM securities | ||||||||||||||
U.S. Treasury securities | 29,429 | 1,235 | 40 | 30,624 | ||||||||||
U.S. agency securities2 | 49,247 | 306 | 760 | 48,793 | ||||||||||
Agency CMBS | 2,513 | 0 | 25 | 2,488 | ||||||||||
Non-agency CMBS | 931 | 42 | 1 | 972 | ||||||||||
Total HTM securities | 82,120 | 1,583 | 826 | 82,877 | ||||||||||
Total investment securities | $ | 174,035 | $ | 3,127 | $ | 1,063 | $ | 176,099 |
Notes to Consolidated Financial Statements (Unaudited) |
At December 31, 2020 | ||||||||||||||
$ in millions | Amortized Cost1 | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||
AFS securities | ||||||||||||||
U.S. Treasury securities | $ | 45,345 | $ | 1,010 | $ | 0 | $ | 46,355 | ||||||
U.S. agency securities2 | 37,389 | 762 | 25 | 38,126 | ||||||||||
Agency CMBS | 19,982 | 465 | 9 | 20,438 | ||||||||||
Corporate bonds | 1,694 | 42 | 0 | 1,736 | ||||||||||
State and municipal securities | 1,461 | 103 | 1 | 1,563 | ||||||||||
FFELP student loan ABS3 | 1,735 | 7 | 26 | 1,716 | ||||||||||
Other ABS | 449 | 0 | 0 | 449 | ||||||||||
Total AFS securities | 108,055 | 2,389 | 61 | 110,383 | ||||||||||
HTM securities | ||||||||||||||
U.S. Treasury securities | 29,346 | 1,893 | 0 | 31,239 | ||||||||||
U.S. agency securities2 | 38,951 | 704 | 8 | 39,647 | ||||||||||
Agency CMBS | 2,632 | 4 | 2 | 2,634 | ||||||||||
Non-agency CMBS | 842 | 58 | 0 | 900 | ||||||||||
Total HTM securities | 71,771 | 2,659 | 10 | 74,420 | ||||||||||
Total investment securities | $ | 179,826 | $ | 5,048 | $ | 71 | $ | 184,803 |
At March 31, 2022 | ||||||||||||||
$ in millions | Amortized Cost1 | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||
AFS securities | ||||||||||||||
U.S. Treasury securities | $ | 57,973 | $ | 25 | $ | 1,519 | $ | 56,479 | ||||||
U.S. agency securities2 | 23,863 | 13 | 1,143 | 22,733 | ||||||||||
Agency CMBS | 8,596 | 42 | 189 | 8,449 | ||||||||||
State and municipal securities | 1,334 | 5 | 37 | 1,302 | ||||||||||
FFELP student loan ABS3 | 1,401 | 4 | 14 | 1,391 | ||||||||||
Total AFS securities | 93,167 | 89 | 2,902 | 90,354 | ||||||||||
HTM securities | ||||||||||||||
U.S. Treasury securities | 29,526 | 117 | 544 | 29,099 | ||||||||||
U.S. agency securities2 | 47,656 | 5 | 4,079 | 43,582 | ||||||||||
Agency CMBS | 2,166 | — | 115 | 2,051 | ||||||||||
Non-agency CMBS | 1,091 | 1 | 48 | 1,044 | ||||||||||
Total HTM securities | 80,439 | 123 | 4,786 | 75,776 | ||||||||||
Total investment securities | $ | 173,606 | $ | 212 | $ | 7,688 | $ | 166,130 |
At December 31, 2021 | ||||||||||||||
$ in millions | Amortized Cost1 | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||
AFS securities | ||||||||||||||
U.S. Treasury securities | $ | 58,974 | $ | 343 | $ | 296 | $ | 59,021 | ||||||
U.S. agency securities2 | 26,780 | 274 | 241 | 26,813 | ||||||||||
Agency CMBS | 14,476 | 289 | 89 | 14,676 | ||||||||||
State and municipal securities | 613 | 37 | 2 | 648 | ||||||||||
FFELP student loan ABS3 | 1,672 | 11 | 11 | 1,672 | ||||||||||
Total AFS securities | 102,515 | 954 | 639 | 102,830 | ||||||||||
HTM securities | ||||||||||||||
U.S. Treasury securities | 28,653 | 882 | 81 | 29,454 | ||||||||||
U.S. agency securities2 | 48,195 | 169 | 1,228 | 47,136 | ||||||||||
Agency CMBS | 2,267 | — | 51 | 2,216 | ||||||||||
Non-agency CMBS | 1,053 | 28 | 5 | 1,076 | ||||||||||
Total HTM securities | 80,168 | 1,079 | 1,365 | 79,882 | ||||||||||
Total investment securities | $ | 182,683 | $ | 2,033 | $ | 2,004 | $ | 182,712 |
At June 30, 2021 | At December 31, 2020 | At March 31, 2022 | At December 31, 2021 | |||||||||||||||||||||||||
$ in millions | $ in millions | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | $ in millions | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
U.S. Treasury securities | U.S. Treasury securities | U.S. Treasury securities | ||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | $ | 13,017 | $ | 38 | $ | 151 | $ | 0 | Less than 12 months | $ | 39,314 | $ | 1,252 | $ | 31,459 | $ | 296 | ||||||||||
12 months or longer | 12 months or longer | 6,828 | 267 | — | — | |||||||||||||||||||||||
Total | Total | 13,017 | 38 | 151 | 0 | Total | 46,142 | 1,519 | 31,459 | 296 | ||||||||||||||||||
U.S. agency securities | U.S. agency securities | U.S. agency securities | ||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | 9,081 | 135 | 5,808 | 22 | Less than 12 months | 16,478 | 816 | 12,283 | 219 | ||||||||||||||||||
12 months or longer | 12 months or longer | 793 | 1 | 1,168 | 3 | 12 months or longer | 3,624 | 327 | 1,167 | 22 | ||||||||||||||||||
Total | Total | 9,874 | 136 | 6,976 | 25 | Total | 20,102 | 1,143 | 13,450 | 241 | ||||||||||||||||||
Agency CMBS | Agency CMBS | Agency CMBS | ||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | 2,983 | 47 | 2,779 | 9 | Less than 12 months | 3,634 | 182 | 2,872 | 89 | ||||||||||||||||||
12 months or longer | 12 months or longer | 28 | 0 | 46 | 0 | 12 months or longer | 142 | 7 | 10 | — | ||||||||||||||||||
Total | Total | 3,011 | 47 | 2,825 | 9 | Total | 3,776 | 189 | 2,882 | 89 | ||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||||
12 months or longer | 0 | 0 | 31 | 0 | ||||||||||||||||||||||||
Total | 0 | 0 | 31 | 0 | ||||||||||||||||||||||||
State and municipal securities | State and municipal securities | State and municipal securities | ||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | 34 | 5 | 86 | 0 | Less than 12 months | 1,112 | 37 | 21 | 2 | ||||||||||||||||||
12 months or longer | 0 | 0 | 36 | 1 | ||||||||||||||||||||||||
Total | Total | 34 | 5 | 122 | 1 | Total | 1,112 | 37 | 21 | 2 | ||||||||||||||||||
FFELP student loan ABS | FFELP student loan ABS | FFELP student loan ABS | ||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | 87 | 0 | 0 | 0 | Less than 12 months | 580 | 5 | 320 | 1 | ||||||||||||||||||
12 months or longer | 12 months or longer | 802 | 11 | 1,077 | 26 | 12 months or longer | 412 | 9 | 591 | 10 | ||||||||||||||||||
Total | Total | 889 | 11 | 1,077 | 26 | Total | 992 | 14 | 911 | 11 | ||||||||||||||||||
Total AFS securities in an unrealized loss position | Total AFS securities in an unrealized loss position | Total AFS securities in an unrealized loss position | ||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | 25,202 | 225 | 8,824 | 31 | Less than 12 months | 61,118 | 2,292 | 46,955 | 607 | ||||||||||||||||||
12 months or longer | 12 months or longer | 1,623 | 12 | 2,358 | 30 | 12 months or longer | 11,006 | 610 | 1,775 | 32 | ||||||||||||||||||
Total | Total | $ | 26,825 | $ | 237 | $ | 11,182 | $ | 61 | Total | $ | 72,124 | $ | 2,902 | $ | 48,730 | $ | 639 |
47 | March 2022 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
At June 30, 2021 | At March 31, 2022 | |||||||||||||||||||||
$ in millions | $ in millions | Amortized Cost1 | Fair Value | Annualized Average Yield | $ in millions | Amortized Cost1 | Fair Value | Annualized Average Yield2 | ||||||||||||||
AFS securities | AFS securities | AFS securities | ||||||||||||||||||||
U.S. Treasury securities: | U.S. Treasury securities: | U.S. Treasury securities: | ||||||||||||||||||||
Due within 1 year | Due within 1 year | $ | 10,079 | $ | 10,161 | 1.4 | % | Due within 1 year | $ | 8,901 | $ | 8,911 | 1.6 | % | ||||||||
After 1 year through 5 years | After 1 year through 5 years | 26,632 | 27,138 | 1.3 | % | After 1 year through 5 years | 45,839 | 44,349 | 1.0 | % | ||||||||||||
After 5 years through 10 years | After 5 years through 10 years | 8,883 | 8,911 | 1.2 | % | After 5 years through 10 years | 3,233 | 3,219 | 1.1 | % | ||||||||||||
Total | Total | 45,594 | 46,210 | Total | 57,973 | 56,479 | ||||||||||||||||
U.S. agency securities: | U.S. agency securities: | U.S. agency securities: | ||||||||||||||||||||
Due within 1 year | Due within 1 year | 1 | 1 | 1.5 | % | Due within 1 year | 12 | 12 | 0.5 | % | ||||||||||||
After 1 year through 5 years | After 1 year through 5 years | 147 | 149 | 1.3 | % | After 1 year through 5 years | 335 | 322 | 1.2 | % | ||||||||||||
After 5 years through 10 years | After 5 years through 10 years | 1,466 | 1,504 | 1.8 | % | After 5 years through 10 years | 1,179 | 1,148 | 1.8 | % | ||||||||||||
After 10 years | After 10 years | 27,241 | 27,487 | 1.6 | % | After 10 years | 22,337 | 21,251 | 1.8 | % | ||||||||||||
Total | Total | 28,855 | 29,141 | Total | 23,863 | 22,733 | ||||||||||||||||
Agency CMBS: | Agency CMBS: | Agency CMBS: | ||||||||||||||||||||
Due within 1 year | Due within 1 year | 240 | 242 | 1.8 | % | Due within 1 year | 217 | 217 | 1.8 | % | ||||||||||||
After 1 year through 5 years | After 1 year through 5 years | 1,503 | 1,534 | 1.6 | % | After 1 year through 5 years | 1,318 | 1,298 | 1.6 | % | ||||||||||||
After 5 years through 10 years | After 5 years through 10 years | 10,665 | 11,030 | 1.6 | % | After 5 years through 10 years | 5,339 | 5,337 | 1.8 | % | ||||||||||||
After 10 years | After 10 years | 3,059 | 3,038 | 1.5 | % | After 10 years | 1,722 | 1,597 | 1.4 | % | ||||||||||||
Total | Total | 15,467 | 15,844 | Total | 8,596 | 8,449 | ||||||||||||||||
State and municipal securities: | State and municipal securities: | State and municipal securities: | ||||||||||||||||||||
Due within 1 year | Due within 1 year | 4 | 4 | 1.9 | % | Due within 1 year | 7 | 7 | 1.4 | % | ||||||||||||
After 1 year through 5 years | After 1 year through 5 years | 22 | 22 | 1.8 | % | After 1 year through 5 years | 24 | 25 | 2.3 | % | ||||||||||||
After 5 years through 10 years | After 5 years through 10 years | 30 | 39 | 2.3 | % | After 5 years through 10 years | 106 | 103 | 2.4 | % | ||||||||||||
After 10 Years | After 10 Years | 174 | 191 | 3.9 | % | After 10 Years | 1,197 | 1,167 | 2.6 | % | ||||||||||||
Total | Total | 230 | 256 | Total | 1,334 | 1,302 | ||||||||||||||||
FFELP student loan ABS: | FFELP student loan ABS: | FFELP student loan ABS: | ||||||||||||||||||||
After 1 year through 5 years | After 1 year through 5 years | 131 | 129 | 0.9 | % | |||||||||||||||||
After 5 years through 10 years | After 5 years through 10 years | 139 | 135 | 0.7 | % | |||||||||||||||||
After 10 years | After 10 years | 1,131 | 1,127 | 1.2 | % | |||||||||||||||||
Total | Total | 1,401 | 1,391 | |||||||||||||||||||
Total AFS securities | Total AFS securities | 93,167 | 90,354 | 1.4 | % | |||||||||||||||||
HTM securities | HTM securities | |||||||||||||||||||||
U.S. Treasury securities: | U.S. Treasury securities: | |||||||||||||||||||||
Due within 1 year | Due within 1 year | 3,749 | 3,761 | 1.9 | % | |||||||||||||||||
After 1 year through 5 years | After 1 year through 5 years | 19,336 | 18,974 | 1.7 | % | |||||||||||||||||
After 5 years through 10 years | After 5 years through 10 years | 4,879 | 4,865 | 2.4 | % | |||||||||||||||||
After 10 years | After 10 years | 1,562 | 1,499 | 2.3 | % | |||||||||||||||||
Total | Total | 29,526 | 29,099 | |||||||||||||||||||
U.S. agency securities: | U.S. agency securities: | |||||||||||||||||||||
After 5 years through 10 years | After 5 years through 10 years | 456 | 450 | 2.0 | % | |||||||||||||||||
After 10 years | After 10 years | 47,200 | 43,132 | 1.7 | % | |||||||||||||||||
Total | Total | 47,656 | 43,582 | |||||||||||||||||||
Agency CMBS: | Agency CMBS: | |||||||||||||||||||||
Due within 1 year | Due within 1 year | 32 | 31 | 0.8 | % | Due within 1 year | 78 | 77 | 1.1 | % | ||||||||||||
After 1 year through 5 years | After 1 year through 5 years | 188 | 184 | 0.9 | % | After 1 year through 5 years | 1,371 | 1,312 | 1.3 | % | ||||||||||||
After 5 years through 10 years | After 5 years through 10 years | 152 | 148 | 0.7 | % | After 5 years through 10 years | 567 | 526 | 1.5 | % | ||||||||||||
After 10 years | After 10 years | 1,397 | 1,408 | 1.1 | % | After 10 years | 150 | 136 | 1.5 | % | ||||||||||||
Total | Total | 1,769 | 1,771 | Total | 2,166 | 2,051 | ||||||||||||||||
Total AFS securities | 91,915 | 93,222 | 1.4 | % |
At March 31, 2022 | |||||||||||
$ in millions | Amortized Cost1 | Fair Value | Annualized Average Yield2 | ||||||||
Non-agency CMBS: | |||||||||||
Due within 1 year | 167 | 167 | 4.2 | % | |||||||
After 1 year through 5 years | 90 | 89 | 3.4 | % | |||||||
After 5 years through 10 years | 798 | 753 | 3.6 | % | |||||||
After 10 years | 36 | 35 | 4.4 | % | |||||||
Total | 1,091 | 1,044 | |||||||||
Total HTM securities | 80,439 | 75,776 | 1.8 | % | |||||||
Total investment securities | $ | 173,606 | $ | 166,130 | 1.6 | % |
Three Months Ended March 31, | ||||||||||||||
$ in millions | 2022 | 2021 | ||||||||||||
Gross realized gains | $ | 126 | $ | 145 | ||||||||||
Gross realized (losses) | (82) | (11) | ||||||||||||
Total1 | $ | 44 | $ | 134 |
At March 31, 2022 | |||||||||||||||||
$ in millions | Gross Amounts | Amounts Offset | Balance Sheet Net Amounts | Amounts Not Offset1 | Net Amounts | ||||||||||||
Assets | |||||||||||||||||
Securities purchased under agreements to resell | $ | 238,485 | $ | (110,718) | $ | 127,767 | $ | (123,988) | $ | 3,779 | |||||||
Securities borrowed | 164,657 | (13,662) | 150,995 | (143,492) | 7,503 | ||||||||||||
Liabilities | |||||||||||||||||
Securities sold under agreements to repurchase | $ | 170,786 | $ | (110,718) | $ | 60,068 | $ | (53,563) | $ | 6,505 | |||||||
Securities loaned | 27,884 | (13,662) | 14,222 | (13,930) | 292 | ||||||||||||
Net amounts for which master netting agreements are not in place or may not be legally enforceable | |||||||||||||||||
Securities purchased under agreements to resell | $ | 2,772 | |||||||||||||||
Securities borrowed | 849 | ||||||||||||||||
Securities sold under agreements to repurchase | 5,010 | ||||||||||||||||
Securities loaned | 151 |
48 |
Notes to Consolidated Financial Statements (Unaudited) |
At June 30, 2021 | |||||||||||
$ in millions | Amortized Cost1 | Fair Value | Annualized Average Yield | ||||||||
HTM securities | |||||||||||
U.S. Treasury securities: | |||||||||||
Due within 1 year | 3,673 | 3,711 | 1.9 | % | |||||||
After 1 year through 5 years | 19,256 | 19,880 | 1.7 | % | |||||||
After 5 years through 10 years | 5,418 | 5,855 | 2.4 | % | |||||||
After 10 years | 1,082 | 1,178 | 2.5 | % | |||||||
Total | 29,429 | 30,624 | |||||||||
U.S. agency securities: | |||||||||||
After 5 years through 10 years | 546 | 562 | 2.0 | % | |||||||
After 10 years | 48,701 | 48,231 | 1.6 | % | |||||||
Total | 49,247 | 48,793 | |||||||||
Agency CMBS: | |||||||||||
Due within 1 year | 21 | 21 | 2.4 | % | |||||||
After 1 year through 5 years | 1,358 | 1,349 | 1.3 | % | |||||||
After 5 years through 10 years | 971 | 958 | 1.4 | % | |||||||
After 10 years | 163 | 160 | 1.5 | % | |||||||
Total | 2,513 | 2,488 | |||||||||
Non-agency CMBS: | |||||||||||
Due within 1 year | 151 | 151 | 4.5 | % | |||||||
After 1 year through 5 years | 65 | 67 | 2.7 | % | |||||||
After 5 years through 10 years | 662 | 698 | 3.7 | % | |||||||
After 10 years | 53 | 56 | 3.8 | % | |||||||
Total | 931 | 972 | |||||||||
Total HTM securities | 82,120 | 82,877 | 1.7 | % | |||||||
Total investment securities | $ | 174,035 | $ | 176,099 | 1.6 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Gross realized gains | $ | 74 | $ | 16 | $ | 219 | $ | 65 | ||||||
Gross realized (losses) | (16) | (6) | (27) | (14) | ||||||||||
Total1 | $ | 58 | $ | 10 | $ | 192 | $ | 51 |
At June 30, 2021 | |||||||||||||||||
$ in millions | Gross Amounts | Amounts Offset | Balance Sheet Net Amounts | Amounts Not Offset1 | Net Amounts | ||||||||||||
Assets | |||||||||||||||||
Securities purchased under agreements to resell | $ | 198,942 | $ | (103,012) | $ | 95,930 | $ | (93,720) | $ | 2,210 | |||||||
Securities borrowed | 137,720 | (11,017) | 126,703 | (121,432) | 5,271 | ||||||||||||
Liabilities | |||||||||||||||||
Securities sold under agreements to repurchase | $ | 160,657 | $ | (103,012) | $ | 57,645 | $ | (48,791) | $ | 8,854 | |||||||
Securities loaned | 20,591 | (11,017) | 9,574 | (9,275) | 299 | ||||||||||||
Net amounts for which master netting agreements are not in place or may not be legally enforceable | |||||||||||||||||
Securities purchased under agreements to resell | $ | 1,824 | |||||||||||||||
Securities borrowed | 1,120 | ||||||||||||||||
Securities sold under agreements to repurchase | 8,099 | ||||||||||||||||
Securities loaned | 164 |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Gross Amounts | Amounts Offset | Balance Sheet Net Amounts | Amounts Not Offset1 | Net Amounts | $ in millions | Gross Amounts | Amounts Offset | Balance Sheet Net Amounts | Amounts Not Offset1 | Net Amounts | ||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | $ | 264,140 | $ | (147,906) | $ | 116,234 | $ | (114,108) | $ | 2,126 | Securities purchased under agreements to resell | $ | 197,486 | $ | (77,487) | $ | 119,999 | $ | (106,896) | $ | 13,103 | ||||||||||||
Securities borrowed | Securities borrowed | 124,921 | (12,530) | 112,391 | (107,434) | 4,957 | Securities borrowed | 139,395 | (9,682) | 129,713 | (124,028) | 5,685 | ||||||||||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | $ | 198,493 | $ | (147,906) | $ | 50,587 | $ | (43,960) | $ | 6,627 | Securities sold under agreements to repurchase | $ | 139,675 | $ | (77,487) | $ | 62,188 | $ | (53,692) | $ | 8,496 | ||||||||||||
Securities loaned | Securities loaned | 20,261 | (12,530) | 7,731 | (7,430) | 301 | Securities loaned | 21,981 | (9,682) | 12,299 | (12,019) | 280 | ||||||||||||||||||||||
Net amounts for which master netting agreements are not in place or may not be legally enforceable | Net amounts for which master netting agreements are not in place or may not be legally enforceable | Net amounts for which master netting agreements are not in place or may not be legally enforceable | ||||||||||||||||||||||||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | $ | 1,870 | Securities purchased under agreements to resell | $ | 12,514 | ||||||||||||||||||||||||||||
Securities borrowed | Securities borrowed | 596 | Securities borrowed | 1,041 | ||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | 6,282 | Securities sold under agreements to repurchase | 8,295 | ||||||||||||||||||||||||||||||
Securities loaned | Securities loaned | 128 | Securities loaned | 139 |
At June 30, 2021 | At March 31, 2022 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Overnight and Open | Less than 30 Days | 30-90 Days | Over 90 Days | Total | $ in millions | Overnight and Open | Less than 30 Days | 30-90 Days | Over 90 Days | Total | ||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | $ | 53,852 | $ | 52,208 | $ | 14,459 | $ | 40,138 | $ | 160,657 | Securities sold under agreements to repurchase | $ | 57,575 | $ | 55,401 | $ | 15,420 | $ | 42,390 | $ | 170,786 | ||||||||||||
Securities loaned | Securities loaned | 13,432 | 250 | 150 | 6,759 | 20,591 | Securities loaned | 17,040 | — | 675 | 10,169 | 27,884 | ||||||||||||||||||||||
Total included in the offsetting disclosure | Total included in the offsetting disclosure | $ | 67,284 | $ | 52,458 | $ | 14,609 | $ | 46,897 | $ | 181,248 | Total included in the offsetting disclosure | $ | 74,615 | $ | 55,401 | $ | 16,095 | $ | 52,559 | $ | 198,670 | ||||||||||||
Trading liabilities— Obligation to return securities received as collateral | Trading liabilities— Obligation to return securities received as collateral | 22,331 | 0 | 0 | — | 22,331 | Trading liabilities— Obligation to return securities received as collateral | 26,399 | — | — | — | 26,399 | ||||||||||||||||||||||
Total | Total | $ | 89,615 | $ | 52,458 | $ | 14,609 | $ | 46,897 | $ | 203,579 | Total | $ | 101,014 | $ | 55,401 | $ | 16,095 | $ | 52,559 | $ | 225,069 |
At December 31, 2021 | |||||||||||||||||
$ in millions | Overnight and Open | Less than 30 Days | 30-90 Days | Over 90 Days | Total | ||||||||||||
Securities sold under agreements to repurchase | $ | 29,271 | $ | 53,987 | $ | 17,099 | $ | 39,318 | $ | 139,675 | |||||||
Securities loaned | 11,480 | 364 | 650 | 9,487 | 21,981 | ||||||||||||
Total included in the offsetting disclosure | $ | 40,751 | $ | 54,351 | $ | 17,749 | $ | 48,805 | $ | 161,656 | |||||||
Trading liabilities— Obligation to return securities received as collateral | 30,104 | — | — | — | 30,104 | ||||||||||||
Total | $ | 70,855 | $ | 54,351 | $ | 17,749 | $ | 48,805 | $ | 191,760 |
(Unaudited) |
At December 31, 2020 | |||||||||||||||||
$ in millions | Overnight and Open | Less than 30 Days | 30-90 Days | Over 90 Days | Total | ||||||||||||
Securities sold under agreements to repurchase | $ | 84,349 | $ | 60,853 | $ | 26,221 | $ | 27,070 | $ | 198,493 | |||||||
Securities loaned | 15,267 | 247 | 0 | 4,747 | 20,261 | ||||||||||||
Total included in the offsetting disclosure | $ | 99,616 | $ | 61,100 | $ | 26,221 | $ | 31,817 | $ | 218,754 | |||||||
Trading liabilities— Obligation to return securities received as collateral | 16,389 | 0 | 0 | 0 | 16,389 | ||||||||||||
Total | $ | 116,005 | $ | 61,100 | $ | 26,221 | $ | 31,817 | $ | 235,143 |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | ||||||||||||||
U.S. Treasury and agency securities | U.S. Treasury and agency securities | $ | 39,247 | $ | 94,662 | U.S. Treasury and agency securities | $ | 51,940 | $ | 30,790 | ||||||
Other sovereign government obligations | Other sovereign government obligations | 85,282 | 71,140 | Other sovereign government obligations | 87,195 | 73,063 | ||||||||||
Corporate equities | Corporate equities | 26,775 | 24,692 | Corporate equities | 19,200 | 25,881 | ||||||||||
Other | Other | 9,353 | 7,999 | Other | 12,451 | 9,941 | ||||||||||
Total | Total | $ | 160,657 | $ | 198,493 | Total | $ | 170,786 | $ | 139,675 | ||||||
Securities loaned | Securities loaned | Securities loaned | ||||||||||||||
Other sovereign government obligations | Other sovereign government obligations | $ | 1,414 | $ | 3,430 | Other sovereign government obligations | $ | 858 | $ | 748 | ||||||
Corporate equities | Corporate equities | 19,079 | 16,536 | Corporate equities | 26,528 | 20,656 | ||||||||||
Other | Other | 98 | 295 | Other | 498 | 577 | ||||||||||
Total | Total | $ | 20,591 | $ | 20,261 | Total | $ | 27,884 | $ | 21,981 | ||||||
Total included in the offsetting disclosure | Total included in the offsetting disclosure | $ | 181,248 | $ | 218,754 | Total included in the offsetting disclosure | $ | 198,670 | $ | 161,656 | ||||||
Trading liabilities—Obligation to return securities received as collateral | Trading liabilities—Obligation to return securities received as collateral | Trading liabilities—Obligation to return securities received as collateral | ||||||||||||||
Corporate equities | Corporate equities | $ | 22,312 | $ | 16,365 | Corporate equities | $ | 26,370 | $ | 30,048 | ||||||
Other | Other | 19 | 24 | Other | 29 | 56 | ||||||||||
Total | Total | $ | 22,331 | $ | 16,389 | Total | $ | 26,399 | $ | 30,104 | ||||||
Total | Total | $ | 203,579 | $ | 235,143 | Total | $ | 225,069 | $ | 191,760 |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||||||||
Trading assets | Trading assets | $ | 35,894 | $ | 30,954 | Trading assets | $ | 32,061 | $ | 32,458 |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Collateral received with right to sell or repledge | Collateral received with right to sell or repledge | $ | 708,327 | $ | 724,818 | Collateral received with right to sell or repledge | $ | 725,931 | $ | 672,104 | ||||||
Collateral that was sold or repledged1 | Collateral that was sold or repledged1 | 540,654 | 523,648 | Collateral that was sold or repledged1 | 564,304 | 510,000 |
49 | March 2022 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Segregated securities1 | Segregated securities1 | $ | 23,912 | $ | 34,106 | Segregated securities1 | $ | 30,324 | $ | 20,092 |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Margin and other lending | Margin and other lending | $ | 72,942 | $ | 74,714 | Margin and other lending | $ | 56,348 | $ | 71,532 |
(Unaudited) |
At June 30, 2021 | At March 31, 2022 | |||||||||||||||||||||
$ in millions | $ in millions | Loans Held for Investment | Loans Held for Sale | Total Loans | $ in millions | HFI Loans | HFS Loans | Total Loans | ||||||||||||||
Corporate | Corporate | $ | 4,724 | $ | 7,098 | $ | 11,822 | Corporate | $ | 6,105 | $ | 7,069 | $ | 13,174 | ||||||||
Secured lending facilities | Secured lending facilities | 28,217 | 3,951 | 32,168 | Secured lending facilities | 29,896 | 4,661 | 34,557 | ||||||||||||||
Commercial real estate | Commercial real estate | 6,707 | 583 | 7,290 | Commercial real estate | 8,276 | 1,986 | 10,262 | ||||||||||||||
Residential real estate | Residential real estate | 38,917 | 47 | 38,964 | Residential real estate | 47,236 | 6 | 47,242 | ||||||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | 76,468 | 34 | 76,502 | Securities-based lending and Other loans | 91,413 | 291 | 91,704 | ||||||||||||||
Total loans | Total loans | 155,033 | 11,713 | 166,746 | Total loans | 182,926 | 14,013 | 196,939 | ||||||||||||||
ACL | ACL | (687) | (687) | ACL | (679) | (679) | ||||||||||||||||
Total loans, net | Total loans, net | $ | 154,346 | $ | 11,713 | $ | 166,059 | Total loans, net | $ | 182,247 | $ | 14,013 | $ | 196,260 | ||||||||
Fixed rate loans, net | $ | 38,968 | ||||||||||||||||||||
Floating or adjustable rate loans, net | 127,091 | |||||||||||||||||||||
Loans to non-U.S. borrowers, net | Loans to non-U.S. borrowers, net | 21,567 | Loans to non-U.S. borrowers, net | $ | 24,286 |
At December 31, 2020 | |||||||||||
$ in millions | Loans Held for Investment | Loans Held for Sale | Total Loans | ||||||||
Corporate | $ | 6,046 | $ | 8,580 | $ | 14,626 | |||||
Secured lending facilities | 25,727 | 3,296 | 29,023 | ||||||||
Commercial real estate | 7,346 | 822 | 8,168 | ||||||||
Residential real estate | 35,268 | 48 | 35,316 | ||||||||
Securities-based lending and Other loans | 64,232 | 67 | 64,299 | ||||||||
Total loans | 138,619 | 12,813 | 151,432 | ||||||||
ACL | (835) | (835) | |||||||||
Total loans, net | $ | 137,784 | $ | 12,813 | $ | 150,597 | |||||
Fixed rate loans, net | $ | 32,796 | |||||||||
Floating or adjustable rate loans, net | 117,801 | ||||||||||
Loans to non-U.S. borrowers, net | 21,081 |
At December 31, 2021 | |||||||||||
$ in millions | HFI Loans | HFS Loans | Total Loans | ||||||||
Corporate | $ | 5,567 | $ | 8,107 | $ | 13,674 | |||||
Secured lending facilities | 31,471 | 3,879 | 35,350 | ||||||||
Commercial real estate | 7,227 | 1,777 | 9,004 | ||||||||
Residential real estate | 44,251 | 7 | 44,258 | ||||||||
Securities-based lending and Other loans | 86,440 | 62 | 86,502 | ||||||||
Total loans | 174,956 | 13,832 | 188,788 | ||||||||
ACL | (654) | (654) | |||||||||
Total loans, net | $ | 174,302 | $ | 13,832 | $ | 188,134 | |||||
Loans to non-U.S. borrowers, net | $ | 24,322 |
At March 31, 2022 | At December 31, 2021 | |||||||||||||
$ in millions | Fixed Rate | Floating or Adjustable Rate | Fixed Rate | Floating or Adjustable Rate | ||||||||||
Corporate | $ | — | $ | 13,174 | $ | — | $ | 13,674 | ||||||
Secured lending facilities | — | 34,557 | — | 35,350 | ||||||||||
Commercial real estate | 342 | 9,920 | 343 | 8,661 | ||||||||||
Residential real estate | 20,754 | 26,488 | 18,966 | 25,292 | ||||||||||
Securities-based lending and Other loans | 24,705 | 66,999 | 22,832 | 63,670 | ||||||||||
Total loans, before ACL | $ | 45,801 | $ | 151,138 | $ | 42,141 | $ | 146,647 |
At March 31, 2022 | At December 31, 2021 | |||||||||||||||||||
Corporate | ||||||||||||||||||||
$ in millions | IG | NIG | Total | IG | NIG | Total | ||||||||||||||
Revolving | $ | 2,681 | $ | 2,541 | $ | 5,222 | $ | 2,356 | $ | 2,328 | $ | 4,684 | ||||||||
2022 | — | 3 | 3 | |||||||||||||||||
2021 | — | 94 | 94 | — | 85 | 85 | ||||||||||||||
2020 | 110 | 27 | 137 | 111 | 26 | 137 | ||||||||||||||
2019 | — | 169 | 169 | — | 176 | 176 | ||||||||||||||
2018 | 196 | — | 196 | 196 | — | 196 | ||||||||||||||
Prior | 225 | 59 | 284 | 229 | 60 | 289 | ||||||||||||||
Total | $ | 3,212 | $ | 2,893 | $ | 6,105 | $ | 2,892 | $ | 2,675 | $ | 5,567 |
At June 30, 2021 | At December 31, 2020 | |||||||||||||||||||
Corporate | ||||||||||||||||||||
$ in millions | IG | NIG | Total | IG | NIG | Total | ||||||||||||||
Revolving | $ | 1,404 | $ | 2,353 | $ | 3,757 | $ | 1,138 | $ | 3,231 | $ | 4,369 | ||||||||
2021 | 0 | 71 | 71 | |||||||||||||||||
2020 | 183 | 25 | 208 | 585 | 80 | 665 | ||||||||||||||
2019 | 11 | 187 | 198 | 204 | 202 | 406 | ||||||||||||||
2018 | 195 | 0 | 195 | 195 | 0 | 195 | ||||||||||||||
2017 | 0 | 62 | 62 | 0 | 64 | 64 | ||||||||||||||
Prior | 233 | 0 | 233 | 247 | 100 | 347 | ||||||||||||||
Total | $ | 2,026 | $ | 2,698 | $ | 4,724 | $ | 2,369 | $ | 3,677 | $ | 6,046 |
At June 30, 2021 | At December 31, 2020 | |||||||||||||||||||
Secured lending facilities | ||||||||||||||||||||
$ in millions | IG | NIG | Total | IG | NIG | Total | ||||||||||||||
Revolving | $ | 6,932 | $ | 15,899 | $ | 22,831 | $ | 4,711 | $ | 14,510 | $ | 19,221 | ||||||||
2021 | 460 | 308 | 768 | |||||||||||||||||
2020 | 84 | 214 | 298 | 162 | 253 | 415 | ||||||||||||||
2019 | 179 | 1,644 | 1,823 | 260 | 1,904 | 2,164 | ||||||||||||||
2018 | 328 | 824 | 1,152 | 614 | 1,432 | 2,046 | ||||||||||||||
2017 | 144 | 359 | 503 | 245 | 581 | 826 | ||||||||||||||
Prior | 0 | 842 | 842 | 0 | 1,055 | 1,055 | ||||||||||||||
Total | $ | 8,127 | $ | 20,090 | $ | 28,217 | $ | 5,992 | $ | 19,735 | $ | 25,727 |
At June 30, 2021 | At December 31, 2020 | |||||||||||||||||||
Commercial real estate | ||||||||||||||||||||
$ in millions | IG | NIG | Total | IG | NIG | Total | ||||||||||||||
2021 | $ | 82 | $ | 363 | $ | 445 | ||||||||||||||
2020 | 165 | 820 | 985 | $ | 95 | $ | 943 | $ | 1,038 | |||||||||||
2019 | 1,031 | 1,585 | 2,616 | 1,074 | 1,848 | 2,922 | ||||||||||||||
2018 | 433 | 537 | 970 | 746 | 774 | 1,520 | ||||||||||||||
2017 | 367 | 341 | 708 | 412 | 387 | 799 | ||||||||||||||
Prior | 100 | 883 | 983 | 100 | 967 | 1,067 | ||||||||||||||
Total | $ | 2,178 | $ | 4,529 | $ | 6,707 | $ | 2,427 | $ | 4,919 | $ | 7,346 |
At June 30, 2021 | ||||||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||
by FICO Scores | by LTV Ratio | Total | ||||||||||||||||||||||||
$ in millions | ≥ 740 | 680-739 | ≤ 679 | ≤ 80% | > 80% | |||||||||||||||||||||
Revolving | $ | 69 | $ | 30 | $ | 5 | $ | 104 | $ | 0 | $ | 104 | ||||||||||||||
2021 | 5,506 | 1,131 | 101 | 6,312 | 426 | 6,738 | ||||||||||||||||||||
2020 | 8,530 | 1,761 | 136 | 9,874 | 553 | 10,427 | ||||||||||||||||||||
2019 | 5,176 | 1,168 | 155 | 6,096 | 403 | 6,499 | ||||||||||||||||||||
2018 | 2,108 | 547 | 70 | 2,505 | 220 | 2,725 | ||||||||||||||||||||
2017 | 2,422 | 621 | 78 | 2,900 | 221 | 3,121 | ||||||||||||||||||||
Prior | 6,745 | 2,201 | 357 | 8,461 | 842 | 9,303 | ||||||||||||||||||||
Total | $ | 30,556 | $ | 7,459 | $ | 902 | $ | 36,252 | $ | 2,665 | $ | 38,917 |
At December 31, 2020 | ||||||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||
by FICO Scores | by LTV Ratio | Total | ||||||||||||||||||||||||
$ in millions | ≥ 740 | 680-739 | ≤ 679 | ≤ 80% | > 80% | |||||||||||||||||||||
Revolving | $ | 85 | $ | 32 | $ | 5 | $ | 122 | $ | 0 | $ | 122 | ||||||||||||||
2020 | 8,948 | 1,824 | 149 | 10,338 | 583 | 10,921 | ||||||||||||||||||||
2019 | 5,592 | 1,265 | 168 | 6,584 | 441 | 7,025 | ||||||||||||||||||||
2018 | 2,320 | 604 | 75 | 2,756 | 243 | 2,999 | ||||||||||||||||||||
2017 | 2,721 | 690 | 89 | 3,251 | 249 | 3,500 | ||||||||||||||||||||
2016 | 3,324 | 884 | 118 | 4,035 | 291 | 4,326 | ||||||||||||||||||||
Prior | 4,465 | 1,626 | 284 | 5,684 | 691 | 6,375 | ||||||||||||||||||||
Total | $ | 27,455 | $ | 6,925 | $ | 888 | $ | 32,770 | $ | 2,498 | $ | 35,268 |
At June 30, 2021 | At March 31, 2022 | At December 31, 2021 | ||||||||||||||||||||||||||||||||
Securities-based lending1 | Other2 | Secured Lending Facilities | ||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Investment Grade | Non-Investment Grade | Total | $ in millions | IG | NIG | Total | IG | NIG | Total | |||||||||||||||||||||||
Revolving | Revolving | $ | 63,243 | $ | 5,383 | $ | 715 | $ | 69,341 | Revolving | $ | 7,784 | $ | 18,539 | $ | 26,323 | $ | 7,603 | $ | 20,172 | $ | 27,775 | ||||||||||||
2022 | 2022 | — | 403 | 403 | ||||||||||||||||||||||||||||||
2021 | 2021 | 31 | 232 | 49 | 312 | 2021 | 32 | 429 | 461 | 32 | 467 | 499 | ||||||||||||||||||||||
2020 | 2020 | 0 | 817 | 586 | 1,403 | 2020 | — | 140 | 140 | 35 | 160 | 195 | ||||||||||||||||||||||
2019 | 2019 | 18 | 1,121 | 637 | 1,776 | 2019 | 43 | 753 | 796 | 43 | 819 | 862 | ||||||||||||||||||||||
2018 | 2018 | 232 | 378 | 421 | 1,031 | 2018 | 268 | 415 | 683 | 297 | 703 | 1,000 | ||||||||||||||||||||||
2017 | 0 | 645 | 147 | 792 | ||||||||||||||||||||||||||||||
Prior | Prior | 16 | 1,496 | 301 | 1,813 | Prior | 144 | 946 | 1,090 | 144 | 996 | 1,140 | ||||||||||||||||||||||
Total | Total | $ | 63,540 | $ | 10,072 | $ | 2,856 | $ | 76,468 | Total | $ | 8,271 | $ | 21,625 | $ | 29,896 | $ | 8,154 | $ | 23,317 | $ | 31,471 |
Notes to Consolidated Financial Statements (Unaudited) |
December 31, 2020 | At March 31, 2022 | At December 31, 2021 | ||||||||||||||||||||||||||||||||
Securities-based lending1 | Other2 | Commercial Real Estate | ||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Investment Grade | Non-Investment Grade | Total | $ in millions | IG | NIG | Total | IG | NIG | Total | |||||||||||||||||||||||
Revolving | Revolving | $ | 51,667 | $ | 4,816 | $ | 555 | $ | 57,038 | Revolving | $ | 4 | $ | 83 | $ | 87 | $ | 3 | $ | 149 | $ | 152 | ||||||||||||
2022 | 2022 | 122 | 1,020 | 1,142 | ||||||||||||||||||||||||||||||
2021 | 2021 | 457 | 1,490 | 1,947 | 423 | 1,292 | 1,715 | |||||||||||||||||||||||||||
2020 | 2020 | 0 | 1,073 | 590 | 1,663 | 2020 | 92 | 812 | 904 | 91 | 819 | 910 | ||||||||||||||||||||||
2019 | 2019 | 18 | 1,156 | 623 | 1,797 | 2019 | 1,182 | 936 | 2,118 | 976 | 1,266 | 2,242 | ||||||||||||||||||||||
2018 | 2018 | 232 | 407 | 403 | 1,042 | 2018 | 603 | 325 | 928 | 527 | 416 | 943 | ||||||||||||||||||||||
2017 | 0 | 654 | 122 | 776 | ||||||||||||||||||||||||||||||
2016 | 0 | 566 | 111 | 677 | ||||||||||||||||||||||||||||||
Prior | Prior | 16 | 1,066 | 157 | 1,239 | Prior | 188 | 962 | 1,150 | 189 | 1,076 | 1,265 | ||||||||||||||||||||||
Total | Total | $ | 51,933 | $ | 9,738 | $ | 2,561 | $ | 64,232 | Total | $ | 2,648 | $ | 5,628 | $ | 8,276 | $ | 2,209 | $ | 5,018 | $ | 7,227 |
At March 31, 2022 | ||||||||||||||||||||||||||
Residential Real Estate | ||||||||||||||||||||||||||
by FICO Scores | by LTV Ratio | Total | ||||||||||||||||||||||||
$ in millions | ≥ 740 | 680-739 | ≤ 679 | ≤ 80% | > 80% | |||||||||||||||||||||
Revolving | $ | 64 | $ | 24 | $ | 4 | $ | 92 | $ | — | $ | 92 | ||||||||||||||
2022 | 3,468 | 733 | 93 | 3,980 | 314 | 4,294 | ||||||||||||||||||||
2021 | 12,115 | 2,623 | 263 | 13,996 | 1,005 | 15,001 | ||||||||||||||||||||
2020 | 7,711 | 1,592 | 130 | 8,935 | 498 | 9,433 | ||||||||||||||||||||
2019 | 4,520 | 1,039 | 143 | 5,351 | 351 | 5,702 | ||||||||||||||||||||
2018 | 1,775 | 481 | 53 | 2,130 | 179 | 2,309 | ||||||||||||||||||||
Prior | 7,701 | 2,345 | 359 | 9,535 | 870 | 10,405 | ||||||||||||||||||||
Total | $ | 37,354 | $ | 8,837 | $ | 1,045 | $ | 44,019 | $ | 3,217 | $ | 47,236 |
At December 31, 2021 | ||||||||||||||||||||||||||
Residential Real Estate | ||||||||||||||||||||||||||
by FICO Scores | by LTV Ratio | Total | ||||||||||||||||||||||||
$ in millions | ≥ 740 | 680-739 | ≤ 679 | ≤ 80% | > 80% | |||||||||||||||||||||
Revolving | $ | 65 | $ | 27 | $ | 4 | $ | 96 | $ | — | $ | 96 | ||||||||||||||
2021 | 12,230 | 2,638 | 257 | 14,116 | 1,009 | 15,125 | ||||||||||||||||||||
2020 | 7,941 | 1,648 | 131 | 9,210 | 510 | 9,720 | ||||||||||||||||||||
2019 | 4,690 | 1,072 | 140 | 5,536 | 366 | 5,902 | ||||||||||||||||||||
2018 | 1,865 | 497 | 55 | 2,231 | 186 | 2,417 | ||||||||||||||||||||
2017 | 2,157 | 558 | 65 | 2,588 | 192 | 2,780 | ||||||||||||||||||||
Prior | 5,973 | 1,919 | 319 | 7,485 | 726 | 8,211 | ||||||||||||||||||||
Total | $ | 34,921 | $ | 8,359 | $ | 971 | $ | 41,262 | $ | 2,989 | $ | 44,251 |
At March 31, 2022 | ||||||||||||||
Securities-based Lending1 | Other2 | |||||||||||||
$ in millions | IG | NIG | Total | |||||||||||
Revolving | $ | 75,570 | $ | 6,105 | $ | 988 | $ | 82,663 | ||||||
2022 | 720 | 477 | 85 | 1,282 | ||||||||||
2021 | 800 | 565 | 152 | 1,517 | ||||||||||
2020 | — | 596 | 657 | 1,253 | ||||||||||
2019 | 19 | 994 | 602 | 1,615 | ||||||||||
2018 | 213 | 273 | 288 | 774 | ||||||||||
Prior | 16 | 1,682 | 611 | 2,309 | ||||||||||
Total | $ | 77,338 | $ | 10,692 | $ | 3,383 | $ | 91,413 |
December 31, 2021 | ||||||||||||||
Securities-based Lending1 | Other2 | |||||||||||||
$ in millions | IG | NIG | Total | |||||||||||
Revolving | $ | 71,485 | $ | 6,170 | $ | 858 | $ | 78,513 | ||||||
2021 | 807 | 708 | 103 | 1,618 | ||||||||||
2020 | — | 651 | 626 | 1,277 | ||||||||||
2019 | 19 | 1,079 | 633 | 1,731 | ||||||||||
2018 | 232 | 273 | 375 | 880 | ||||||||||
2017 | — | 531 | 217 | 748 | ||||||||||
Prior | 16 | 1,294 | 363 | 1,673 | ||||||||||
Total | $ | 72,559 | $ | 10,706 | $ | 3,175 | $ | 86,440 |
$ in millions | At June 30, 2021 | At December 31, 2020 | ||||||
Residential real estate | 194 | 332 | ||||||
Securities-based lending and Other loans | 0 | 31 | ||||||
Total | $ | 194 | $ | 363 |
$ in millions | At March 31, 2022 | At December 31, 2021 | ||||||
Residential real estate | 191 | 209 | ||||||
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Corporate | Corporate | $ | 98 | $ | 164 | Corporate | $ | 77 | $ | 34 | ||||||
Secured lending facilities | Secured lending facilities | 298 | 0 | Secured lending facilities | 110 | 375 | ||||||||||
Commercial real estate | Commercial real estate | 71 | 152 | Commercial real estate | 287 | 195 | ||||||||||
Residential real estate | Residential real estate | 123 | 97 | Residential real estate | 119 | 138 | ||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | 163 | 178 | Securities-based lending and Other loans | 142 | 151 | ||||||||||
Total1 | Total1 | $ | 753 | $ | 591 | Total1 | $ | 735 | $ | 893 | ||||||
Nonaccrual loans without an ACL | Nonaccrual loans without an ACL | $ | 124 | $ | 90 | Nonaccrual loans without an ACL | $ | 112 | $ | 356 |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Loans, before ACL | Loans, before ACL | $ | 62 | $ | 167 | Loans, before ACL | $ | 30 | $ | 49 | ||||||
Lending commitments | 0 | 27 | ||||||||||||||
ACL on Loans and Lending commitments | 10 | 36 | ||||||||||||||
Allowance for credit losses | Allowance for credit losses | — | 8 |
$ in millions | Corporate | Secured lending facilities | CRE | Residential real estate | SBL and Other | Total | ||||||||||||||
December 31, 2020 | $ | 309 | $ | 198 | $ | 211 | $ | 59 | $ | 58 | $ | 835 | ||||||||
Gross charge-offs | (14) | (67) | (21) | 0 | 0 | (102) | ||||||||||||||
Provision for credit losses1 | (95) | 48 | 5 | (2) | 2 | (42) | ||||||||||||||
Other | (1) | (2) | (1) | 0 | 0 | (4) | ||||||||||||||
June 30, 2021 | $ | 199 | $ | 177 | $ | 194 | $ | 57 | $ | 60 | $ | 687 |
$ in millions | Corporate | Secured lending facilities | CRE | Residential real estate | SBL and Other | Total | ||||||||||||||
December 31, 2019 | $ | 115 | $ | 101 | $ | 75 | $ | 25 | $ | 33 | $ | 349 | ||||||||
Effect of CECL adoption | (2) | (42) | 34 | 21 | (2) | 9 | ||||||||||||||
Gross charge-offs | (33) | 0 | 0 | 0 | 0 | (33) | ||||||||||||||
Recoveries | 0 | 0 | 0 | 0 | 2 | 2 | ||||||||||||||
Net recoveries (charge-offs) | (33) | 0 | 0 | 0 | 2 | (31) | ||||||||||||||
Provision for credit losses1 | 298 | 63 | 155 | 13 | 9 | 538 | ||||||||||||||
Other | 1 | 0 | (38) | 0 | 38 | 1 | ||||||||||||||
June 30, 2020 | $ | 379 | $ | 122 | $ | 226 | $ | 59 | $ | 80 | $ | 866 |
$ in millions | Corporate | Secured lending facilities | CRE | Residential real estate | SBL and Other | Total | ||||||||||||||
December 31, 2020 | $ | 323 | $ | 38 | $ | 11 | $ | 1 | $ | 23 | $ | 396 | ||||||||
Provision for credit losses1 | 18 | 1 | 0 | 0 | (2) | 17 | ||||||||||||||
Other | (1) | 1 | (1) | 0 | 0 | (1) | ||||||||||||||
June 30, 2021 | $ | 340 | $ | 40 | $ | 10 | $ | 1 | $ | 21 | $ | 412 |
$ in millions | Corporate | Secured lending facilities | CRE | Residential real estate | SBL and Other | Total | ||||||||||||||
December 31, 2019 | $ | 201 | $ | 27 | $ | 7 | $ | 0 | $ | 6 | $ | 241 | ||||||||
Effect of CECL adoption | (41) | (11) | 1 | 2 | (1) | (50) | ||||||||||||||
Provision for credit losses1 | 73 | 26 | 7 | (1) | 3 | 108 | ||||||||||||||
Other | (2) | 0 | (4) | 0 | 4 | (2) | ||||||||||||||
June 30, 2020 | $ | 231 | $ | 42 | $ | 11 | $ | 1 | $ | 12 | $ | 297 |
Three Months Ended June 30, | ||||||||
$ in millions | 2021 | 2020 | ||||||
Loans | $ | 16 | $ | 246 | ||||
Lending commitments | 57 | (7) |
Notes to Consolidated Financial Statements (Unaudited) |
$ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | ||||||||||||||
December 31, 2021 | $ | 165 | $ | 163 | $ | 206 | $ | 60 | $ | 60 | $ | 654 | ||||||||
Gross charge-offs | — | (3) | (7) | — | (1) | (11) | ||||||||||||||
Provision (release) | 6 | 12 | 6 | 13 | 2 | 39 | ||||||||||||||
Other | (1) | — | (2) | — | — | (3) | ||||||||||||||
March 31, 2022 | $ | 170 | $ | 172 | $ | 203 | $ | 73 | $ | 61 | $ | 679 | ||||||||
Percent of loans to total loans1 | 3 | % | 16 | % | 5 | % | 26 | % | 50 | % | 100 | % |
$ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | ||||||||||||||
December 31, 2020 | $ | 309 | $ | 198 | $ | 211 | $ | 59 | $ | 58 | $ | 835 | ||||||||
Gross charge-offs | (1) | — | (9) | — | — | (10) | ||||||||||||||
Provision (release) | (56) | (3) | 5 | (5) | 1 | (58) | ||||||||||||||
Other | (2) | (2) | (1) | — | — | (5) | ||||||||||||||
March 31, 2021 | $ | 250 | $ | 193 | $ | 206 | $ | 54 | $ | 59 | $ | 762 | ||||||||
Percent of loans to total loans1 | 4 | % | 18 | % | 5 | % | 25 | % | 48 | % | 100 | % |
$ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | ||||||||||||||
December 31, 2021 | $ | 356 | $ | 41 | $ | 20 | $ | 1 | $ | 26 | $ | 444 | ||||||||
Provision (release) | 20 | 8 | (7) | — | (3) | 18 | ||||||||||||||
Other | (3) | — | — | — | — | (3) | ||||||||||||||
March 31, 2022 | $ | 373 | $ | 49 | $ | 13 | $ | 1 | $ | 23 | $ | 459 |
$ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | ||||||||||||||
December 31, 2020 | $ | 323 | $ | 38 | $ | 11 | $ | 1 | $ | 23 | $ | 396 | ||||||||
Provision (release) | (33) | (4) | (2) | — | (1) | (40) | ||||||||||||||
Other | (1) | 1 | (1) | — | (1) | (2) | ||||||||||||||
March 31, 2021 | $ | 289 | $ | 35 | $ | 8 | $ | 1 | $ | 21 | $ | 354 |
At March 31, 2022 | At December 31, 2021 | |||||||
ACL to total loans1 | 0.4 | % | 0.4 | % | ||||
Nonaccrual loans to total loans2 | 0.4 | % | 0.5 | % | ||||
ACL to nonaccrual loans3 | 92.4 | % | 73.2 | % |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Currently employed by the Firm1 | Currently employed by the Firm1 | $ | 3,329 | $ | 3,100 | Currently employed by the Firm1 | $ | 3,759 | $ | 3,613 | ||||||
No longer employed by the Firm2 | No longer employed by the Firm2 | 133 | $ | 140 | No longer employed by the Firm2 | 105 | $ | 113 | ||||||||
Employee loans | Employee loans | $ | 3,462 | $ | 3,240 | Employee loans | $ | 3,864 | $ | 3,726 | ||||||
ACL | ACL | (163) | (165) | ACL | (146) | (153) | ||||||||||
Employee loans, net of ACL | Employee loans, net of ACL | $ | 3,299 | $ | 3,075 | Employee loans, net of ACL | $ | 3,718 | $ | 3,573 | ||||||
Remaining repayment term, weighted average in years | Remaining repayment term, weighted average in years | 5.6 | 5.3 | Remaining repayment term, weighted average in years | 5.7 | 5.7 |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Investments | Investments | $ | 2,266 | $ | 2,410 | Investments | $ | 2,138 | $ | 2,214 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||||||||||||
Income (loss) | Income (loss) | $ | 51 | $ | (63) | $ | 27 | $ | (34) | Income (loss) | $ | 6 | $ | (24) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Income (loss) from investment in MUMSS | $ | 52 | $ | (1) | $ | 84 | $ | 31 |
$ in millions | At June 30, 2021 | At December 31, 2020 | ||||||
Savings and demand deposits | $ | 299,681 | $ | 279,221 | ||||
Time deposits | 20,677 | 31,561 | ||||||
Total | $ | 320,358 | $ | 310,782 | ||||
Deposits subject to FDIC insurance | $ | 237,803 | $ | 234,211 | ||||
Time deposits that equal or exceed the FDIC insurance limit | $ | 6 | $ | 16 |
$ in millions | At June 30, 2021 | ||||
2021 | $ | 6,804 | |||
2022 | 5,523 | ||||
2023 | 4,117 | ||||
2024 | 2,821 | ||||
2025 | 776 | ||||
Thereafter | 636 | ||||
Total | $ | 20,677 |
$ in millions | At June 30, 2021 | At December 31, 2020 | ||||||
Original maturities of one year or less | $ | 5,538 | $ | 3,691 | ||||
Original maturities greater than one year | ||||||||
Senior | $ | 207,781 | $ | 202,305 | ||||
Subordinated | 10,823 | 11,083 | ||||||
Total | $ | 218,604 | $ | 213,388 | ||||
Total borrowings | $ | 224,142 | $ | 217,079 | ||||
Weighted average stated maturity, in years1 | 7.6 | 7.3 |
Notes to Consolidated Financial Statements (Unaudited) |
Three Months Ended March 31, | ||||||||||||||
$ in millions | 2022 | 2021 | ||||||||||||
Income (loss) from investment in MUMSS | $ | 4 | $ | 32 |
$ in millions | At March 31, 2022 | At December 31, 2021 | ||||||
Savings and demand deposits | $ | 348,651 | $ | 332,747 | ||||
Time deposits | 12,189 | 14,827 | ||||||
Total | $ | 360,840 | $ | 347,574 | ||||
Deposits subject to FDIC insurance | $ | 234,779 | $ | 230,894 | ||||
Deposits not subject to FDIC insurance | $ | 126,061 | $ | 116,680 | ||||
$ in millions | At March 31, 2022 | ||||
2022 | $ | 3,423 | |||
2023 | 4,187 | ||||
2024 | 2,796 | ||||
2025 | 882 | ||||
2026 | 306 | ||||
Thereafter | 595 | ||||
Total | $ | 12,189 |
$ in millions | At March 31, 2022 | At December 31, 2021 | ||||||
Original maturities of one year or less | $ | 4,146 | $ | 5,764 | ||||
Original maturities greater than one year | ||||||||
Senior | $ | 212,687 | $ | 213,776 | ||||
Subordinated | 12,984 | 13,587 | ||||||
Total | $ | 225,671 | $ | 227,363 | ||||
Total borrowings | $ | 229,817 | $ | 233,127 | ||||
Weighted average stated maturity, in years1 | 7.3 | 7.7 |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Original maturities: | Original maturities: | Original maturities: | ||||||||||||||
One year or less | One year or less | $ | 6,767 | $ | 10,453 | One year or less | $ | 3,778 | $ | 4,573 | ||||||
Greater than one year | Greater than one year | 4,465 | 5,410 | Greater than one year | 5,030 | 5,468 | ||||||||||
Total | Total | $ | 11,232 | $ | 15,863 | Total | $ | 8,808 | $ | 10,041 | ||||||
Transfers of assets accounted for as secured financings | Transfers of assets accounted for as secured financings | $ | 1,253 | $ | 1,529 | Transfers of assets accounted for as secured financings | $ | 1,071 | $ | 1,556 |
Years to Maturity at June 30, 2021 | Years to Maturity at March 31, 2022 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | $ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||||||||||||
Lending: | Lending: | Lending: | ||||||||||||||||||||||||||||||||
Corporate | Corporate | $ | 16,396 | $ | 38,716 | $ | 44,932 | $ | 7,479 | $ | 107,523 | Corporate | $ | 14,186 | $ | 36,316 | $ | 50,242 | $ | 6,200 | $ | 106,944 | ||||||||||||
Secured lending facilities | Secured lending facilities | 6,007 | 6,669 | 2,086 | 643 | 15,405 | Secured lending facilities | 6,524 | 7,576 | 3,640 | 553 | 18,293 | ||||||||||||||||||||||
Commercial and Residential real estate | Commercial and Residential real estate | 428 | 233 | 19 | 248 | 928 | Commercial and Residential real estate | 412 | 813 | 26 | 259 | 1,510 | ||||||||||||||||||||||
Securities-based lending and Other | Securities-based lending and Other | 11,103 | 3,724 | 308 | 266 | 15,401 | Securities-based lending and Other | 11,447 | 3,380 | 506 | 412 | 15,745 | ||||||||||||||||||||||
Forward-starting secured financing receivables | Forward-starting secured financing receivables | 69,886 | 0 | 0 | 0 | 69,886 | Forward-starting secured financing receivables | 61,272 | — | — | — | 61,272 | ||||||||||||||||||||||
Central counterparty | Central counterparty | 300 | 0 | 0 | 6,237 | 6,537 | Central counterparty | 300 | — | — | 4,772 | 5,072 | ||||||||||||||||||||||
Underwriting | Underwriting | 0 | 60 | 0 | 0 | 60 | Underwriting | 40 | 3,150 | — | — | 3,190 | ||||||||||||||||||||||
Investment activities | Investment activities | 1,019 | 253 | 56 | 356 | 1,684 | Investment activities | 1,157 | 176 | 52 | 380 | 1,765 | ||||||||||||||||||||||
Letters of credit and other financial guarantees | Letters of credit and other financial guarantees | 26 | 0 | 0 | 3 | 29 | Letters of credit and other financial guarantees | 129 | — | — | 3 | 132 | ||||||||||||||||||||||
Total | Total | $ | 105,165 | $ | 49,655 | $ | 47,401 | $ | 15,232 | $ | 217,453 | Total | $ | 95,467 | $ | 51,411 | $ | 54,466 | $ | 12,579 | $ | 213,923 | ||||||||||||
Lending commitments participated to third parties | Lending commitments participated to third parties | $ | 9,223 | Lending commitments participated to third parties | $ | 7,963 | ||||||||||||||||||||||||||||
Forward-starting secured financing receivables settled within three business days | Forward-starting secured financing receivables settled within three business days | $ | 64,159 | Forward-starting secured financing receivables settled within three business days | $ | 51,192 |
53 | |||||||||||||||||
March 2022 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) | |||||
At June 30, 2021 | |||||||||||||||||||||||
Maximum Potential Payout/Notional of Obligations by Years to Maturity | Carrying Amount Asset (Liability) | ||||||||||||||||||||||
$ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | |||||||||||||||||||
Non-credit derivatives1 | $ | 1,352,865 | $ | 1,029,619 | $ | 445,441 | $ | 955,300 | $ | (46,932) | |||||||||||||
Standby letters of credit and other financial guarantees issued2 | 1,537 | 1,250 | 517 | 3,735 | 89 | ||||||||||||||||||
Market value guarantees | 79 | 22 | 0 | 0 | 0 | ||||||||||||||||||
Liquidity facilities | 4,073 | 0 | 0 | 0 | 5 | ||||||||||||||||||
Whole loan sales guarantees | 0 | 0 | 58 | 23,123 | 0 | ||||||||||||||||||
Securitization representations and warranties3 | 0 | 0 | 0 | 69,210 | (42) | ||||||||||||||||||
General partner guarantees | 315 | 12 | 20 | 125 | (68) | ||||||||||||||||||
Client clearing guarantees | 52 | 0 | 0 | 0 | 0 |
At March 31, 2022 | |||||||||||||||||||||||
Maximum Potential Payout/Notional of Obligations by Years to Maturity | Carrying Amount Asset (Liability) | ||||||||||||||||||||||
$ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | |||||||||||||||||||
Non-credit derivatives1 | $ | 1,316,262 | $ | 914,129 | $ | 322,125 | $ | 821,128 | $ | (67,840) | |||||||||||||
Standby letters of credit and other financial guarantees issued2 | 1,441 | 1,079 | 1,124 | 2,686 | 29 | ||||||||||||||||||
Market value guarantees | 89 | 2 | — | — | — | ||||||||||||||||||
Liquidity facilities | 4,382 | — | — | — | 4 | ||||||||||||||||||
Whole loan sales guarantees | — | 2 | 85 | 23,095 | — | ||||||||||||||||||
Securitization representations and warranties3 | — | — | — | 79,059 | (42) | ||||||||||||||||||
General partner guarantees | 348 | 12 | 32 | 152 | (79) | ||||||||||||||||||
Client clearing guarantees | 150 | — | — | — | — |
(Unaudited) |
March 2022 Form 10-Q | 54 |
Notes to Consolidated Financial Statements (Unaudited) |
(Unaudited) |
At June 30, 2021 | At December 31, 2020 | |||||||||||||
$ in millions | VIE Assets | VIE Liabilities | VIE Assets | VIE Liabilities | ||||||||||
CLO | $ | 800 | $ | 705 | $ | 418 | $ | 350 | ||||||
MABS2 | 388 | 47 | 590 | 17 | ||||||||||
Other3 | 1,497 | 378 | 1,110 | 47 | ||||||||||
Total | $ | 2,685 | $ | 1,130 | $ | 2,118 | $ | 414 |
At March 31, 2022 | At December 31, 2021 | |||||||||||||
$ in millions | VIE Assets | VIE Liabilities | VIE Assets | VIE Liabilities | ||||||||||
MABS1 | $ | 1,272 | $ | 383 | $ | 1,177 | $ | 409 | ||||||
Investment vehicles2 | 813 | 429 | 717 | 294 | ||||||||||
Operating entities | 509 | 37 | 508 | 39 | ||||||||||
Other | 579 | 288 | 510 | 286 | ||||||||||
Total | $ | 3,173 | $ | 1,137 | $ | 2,912 | $ | 1,028 |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Assets | Assets | Assets | ||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 318 | $ | 269 | Cash and cash equivalents | $ | 334 | $ | 341 | ||||||
Trading assets at fair value | Trading assets at fair value | 1,781 | 1,445 | Trading assets at fair value | 2,252 | 1,965 | ||||||||||
Investment securities | Investment securities | 34 | 37 | |||||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | 200 | 0 | Securities purchased under agreements to resell | 200 | 200 | ||||||||||
Customer and other receivables | Customer and other receivables | 25 | 23 | Customer and other receivables | 26 | 31 | ||||||||||
Intangible assets | Intangible assets | 92 | 98 | Intangible assets | 82 | 85 | ||||||||||
Other assets | Other assets | 269 | 283 | Other assets | 245 | 253 | ||||||||||
Total | Total | $ | 2,685 | $ | 2,118 | Total | $ | 3,173 | $ | 2,912 | ||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||
Other secured financings | Other secured financings | $ | 949 | $ | 366 | Other secured financings | $ | 963 | $ | 767 | ||||||
Other liabilities and accrued expenses | Other liabilities and accrued expenses | 181 | 48 | Other liabilities and accrued expenses | 174 | 261 | ||||||||||
Total | Total | $ | 1,130 | $ | 414 | Total | $ | 1,137 | $ | 1,028 | ||||||
Noncontrolling interests | Noncontrolling interests | $ | 143 | $ | 196 | Noncontrolling interests | $ | 119 | $ | 115 |
At March 31, 2022 | |||||||||||||||||
$ in millions | MABS1 | CDO | MTOB | OSF | Other2 | ||||||||||||
VIE assets (UPB) | $ | 116,627 | $ | 1,379 | $ | 6,465 | $ | 2,043 | $ | 54,186 | |||||||
Maximum exposure to loss3 | |||||||||||||||||
Debt and equity interests | $ | 13,005 | $ | 157 | $ | — | $ | 1,449 | $ | 11,055 | |||||||
Derivative and other contracts | — | — | 4,382 | — | 4,374 | ||||||||||||
Commitments, guarantees and other | 1,007 | — | — | — | 1,454 | ||||||||||||
Total | $ | 14,012 | $ | 157 | $ | 4,382 | $ | 1,449 | $ | 16,883 | |||||||
Carrying value of variable interests—Assets | |||||||||||||||||
Debt and equity interests | $ | 13,005 | $ | 157 | $ | — | $ | 1,449 | $ | 11,055 | |||||||
Derivative and other contracts | — | — | 6 | — | 1,642 | ||||||||||||
Total | $ | 13,005 | $ | 157 | $ | 6 | $ | 1,449 | $ | 12,697 | |||||||
Additional VIE assets owned4 | $ | 13,339 | |||||||||||||||
Carrying value of variable interests—Liabilities | |||||||||||||||||
Derivative and other contracts | $ | — | $ | — | $ | 1 | $ | — | $ | 280 | |||||||
Notes to Consolidated Financial Statements (Unaudited) |
At June 30, 2021 | |||||||||||||||||
$ in millions | MABS1 | CDO | MTOB | OSF | Other2 | ||||||||||||
VIE assets (UPB) | $ | 155,510 | $ | 1,918 | $ | 6,424 | $ | 2,001 | $ | 50,129 | |||||||
Maximum exposure to loss3 | |||||||||||||||||
Debt and equity interests | $ | 20,473 | $ | 166 | $ | 4 | $ | 1,245 | $ | 10,741 | |||||||
Derivative and other contracts | 0 | 0 | 4,073 | 0 | 5,997 | ||||||||||||
Commitments, guarantees and other | 1,390 | 0 | 0 | 0 | 1,443 | ||||||||||||
Total | $ | 21,863 | $ | 166 | $ | 4,077 | $ | 1,245 | $ | 18,181 | |||||||
Carrying value of variable interests—Assets | |||||||||||||||||
Debt and equity interests | $ | 20,473 | $ | 166 | $ | 4 | $ | 1,245 | $ | 10,741 | |||||||
Derivative and other contracts | 0 | 0 | 5 | 0 | 2,208 | ||||||||||||
Total | $ | 20,473 | $ | 166 | $ | 9 | $ | 1,245 | $ | 12,949 | |||||||
Additional VIE assets owned4 | $ | 17,235 | |||||||||||||||
Carrying value of variable interests—Liabilities | |||||||||||||||||
Derivative and other contracts | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 217 | |||||||
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | MABS1 | CDO | MTOB | OSF | Other2 | $ in millions | MABS1 | CDO | MTOB | OSF | Other2 | ||||||||||||||||||||||
VIE assets (UPB) | VIE assets (UPB) | $ | 184,153 | $ | 3,527 | $ | 6,524 | $ | 2,161 | $ | 48,241 | VIE assets (UPB) | $ | 146,071 | $ | 667 | $ | 6,089 | $ | 2,086 | $ | 52,111 | ||||||||||||
Maximum exposure to loss3 | Maximum exposure to loss3 | Maximum exposure to loss3 | ||||||||||||||||||||||||||||||||
Debt and equity interests | Debt and equity interests | $ | 26,247 | $ | 257 | $ | 0 | $ | 1,187 | $ | 11,008 | Debt and equity interests | $ | 18,062 | $ | 129 | $ | — | $ | 1,459 | $ | 10,339 | ||||||||||||
Derivative and other contracts | Derivative and other contracts | 0 | 0 | 4,425 | 0 | 5,639 | Derivative and other contracts | — | — | 4,100 | — | 5,599 | ||||||||||||||||||||||
Commitments, guarantees and other | Commitments, guarantees and other | 929 | 0 | 0 | 0 | 749 | Commitments, guarantees and other | 771 | — | — | — | 1,005 | ||||||||||||||||||||||
Total | Total | $ | 27,176 | $ | 257 | $ | 4,425 | $ | 1,187 | $ | 17,396 | Total | $ | 18,833 | $ | 129 | $ | 4,100 | $ | 1,459 | $ | 16,943 | ||||||||||||
Carrying value of variable interests–Assets | Carrying value of variable interests–Assets | Carrying value of variable interests–Assets | ||||||||||||||||||||||||||||||||
Debt and equity interests | Debt and equity interests | $ | 26,247 | $ | 257 | $ | 0 | $ | 1,187 | $ | 11,008 | Debt and equity interests | $ | 18,062 | $ | 129 | $ | — | $ | 1,459 | $ | 10,339 | ||||||||||||
Derivative and other contracts | Derivative and other contracts | 0 | 0 | 5 | 0 | 851 | Derivative and other contracts | — | — | 5 | — | 2,006 | ||||||||||||||||||||||
Total | Total | $ | 26,247 | $ | 257 | $ | 5 | $ | 1,187 | $ | 11,859 | Total | $ | 18,062 | $ | 129 | $ | 5 | $ | 1,459 | $ | 12,345 | ||||||||||||
Additional VIE assets owned4 | Additional VIE assets owned4 | $ | 20,019 | Additional VIE assets owned4 | $ | 15,392 | ||||||||||||||||||||||||||||
Carrying value of variable interests—Liabilities | Carrying value of variable interests—Liabilities | Carrying value of variable interests—Liabilities | ||||||||||||||||||||||||||||||||
Derivative and other contracts | Derivative and other contracts | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 222 | Derivative and other contracts | $ | — | $ | — | $ | — | $ | — | $ | 362 |
At June 30, 2021 | At December 31, 2020 | At March 31, 2022 | At December 31, 2021 | |||||||||||||||||||||||||
$ in millions | $ in millions | UPB | Debt and Equity Interests | UPB | Debt and Equity Interests | $ in millions | UPB | Debt and Equity Interests | UPB | Debt and Equity Interests | ||||||||||||||||||
Residential mortgages | Residential mortgages | $ | 17,146 | $ | 2,637 | $ | 17,775 | $ | 3,175 | Residential mortgages | $ | 12,741 | $ | 2,164 | $ | 15,216 | $ | 2,182 | ||||||||||
Commercial mortgages | Commercial mortgages | 62,404 | 3,705 | 62,093 | 4,131 | Commercial mortgages | 67,450 | 4,058 | 68,503 | 4,092 | ||||||||||||||||||
U.S. agency collateralized mortgage obligations | U.S. agency collateralized mortgage obligations | 70,091 | 11,989 | 99,182 | 17,224 | U.S. agency collateralized mortgage obligations | 31,914 | 4,818 | 57,972 | 9,835 | ||||||||||||||||||
Other consumer or commercial loans | Other consumer or commercial loans | 5,869 | 2,142 | 5,103 | 1,717 | Other consumer or commercial loans | 4,522 | 1,965 | 4,380 | 1,953 | ||||||||||||||||||
Total | Total | $ | 155,510 | $ | 20,473 | $ | 184,153 | $ | 26,247 | Total | $ | 116,627 | $ | 13,005 | $ | 146,071 | $ | 18,062 |
At June 30, 2021 | At March 31, 2022 | |||||||||||||||||||||||||||
$ in millions | $ in millions | RML | CML | U.S. Agency CMO | CLN and Other1 | $ in millions | RML | CML | U.S. Agency CMO | CLN and Other1 | ||||||||||||||||||
SPE assets (UPB)2 | SPE assets (UPB)2 | $ | 7,217 | $ | 90,355 | $ | 31,722 | $ | 15,181 | SPE assets (UPB)2 | $ | 8,677 | $ | 101,928 | $ | 33,602 | $ | 12,574 | ||||||||||
Retained interests | Retained interests | Retained interests | ||||||||||||||||||||||||||
Investment grade | Investment grade | $ | 98 | $ | 936 | $ | 605 | $ | 0 | Investment grade | $ | 96 | $ | 754 | $ | 363 | $ | — | ||||||||||
Non-investment grade | Non-investment grade | 21 | 214 | 0 | 80 | Non-investment grade | 26 | 576 | — | 57 | ||||||||||||||||||
Total | Total | $ | 119 | $ | 1,150 | $ | 605 | $ | 80 | Total | $ | 122 | $ | 1,330 | $ | 363 | $ | 57 | ||||||||||
Interests purchased in the secondary market | Interests purchased in the secondary market | Interests purchased in the secondary market | ||||||||||||||||||||||||||
Investment grade | Investment grade | $ | 0 | $ | 78 | $ | 20 | $ | 0 | Investment grade | $ | 55 | $ | 65 | $ | 134 | $ | 4 | ||||||||||
Non-investment grade | Non-investment grade | 46 | 68 | 0 | 1 | Non-investment grade | 44 | 49 | — | 2 | ||||||||||||||||||
Total | Total | $ | 46 | $ | 146 | $ | 20 | $ | 1 | Total | $ | 99 | $ | 114 | $ | 134 | $ | 6 | ||||||||||
Derivative assets | Derivative assets | $ | 0 | $ | 0 | $ | 0 | $ | 608 | Derivative assets | $ | — | $ | — | $ | — | $ | 1,050 | ||||||||||
Derivative liabilities | Derivative liabilities | 0 | 0 | 0 | 197 | Derivative liabilities | — | — | — | 185 |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||||||||
$ in millions | $ in millions | RML | CML | U.S. Agency CMO | CLN and Other1 | $ in millions | RML | CML | U.S. Agency CMO | CLN and Other1 | ||||||||||||||||||
SPE assets (UPB)2 | SPE assets (UPB)2 | $ | 7,515 | $ | 84,674 | $ | 21,061 | $ | 12,978 | SPE assets (UPB)2 | $ | 6,802 | $ | 94,276 | $ | 28,697 | $ | 13,121 | ||||||||||
Retained interests | Retained interests | Retained interests | ||||||||||||||||||||||||||
Investment grade | Investment grade | $ | 49 | $ | 822 | $ | 615 | $ | 0 | Investment grade | $ | 72 | $ | 638 | $ | 465 | $ | — | ||||||||||
Non-investment grade | Non-investment grade | 16 | 195 | 0 | 114 | Non-investment grade | 19 | 586 | — | 69 | ||||||||||||||||||
Total | Total | $ | 65 | $ | 1,017 | $ | 615 | $ | 114 | Total | $ | 91 | $ | 1,224 | $ | 465 | $ | 69 | ||||||||||
Interests purchased in the secondary market | Interests purchased in the secondary market | Interests purchased in the secondary market | ||||||||||||||||||||||||||
Investment grade | Investment grade | $ | 0 | $ | 96 | $ | 116 | $ | 0 | Investment grade | $ | 18 | $ | 118 | $ | 33 | $ | — | ||||||||||
Non-investment grade | Non-investment grade | 43 | 80 | 0 | 21 | Non-investment grade | 38 | 53 | — | 4 | ||||||||||||||||||
Total | Total | $ | 43 | $ | 176 | $ | 116 | $ | 21 | Total | $ | 56 | $ | 171 | $ | 33 | $ | 4 | ||||||||||
Derivative assets | Derivative assets | $ | 0 | $ | 0 | $ | 0 | $ | 400 | Derivative assets | $ | — | $ | — | $ | — | $ | 891 | ||||||||||
Derivative liabilities | Derivative liabilities | 0 | 0 | 0 | 436 | Derivative liabilities | — | — | — | 284 |
Fair Value At March 31, 2022 | |||||||||||
$ in millions | Level 2 | Level 3 | Total | ||||||||
Retained interests | |||||||||||
Investment grade | $ | 461 | $ | — | $ | 461 | |||||
Non-investment grade | 11 | 45 | 56 | ||||||||
Total | $ | 472 | $ | 45 | $ | 517 | |||||
Interests purchased in the secondary market | |||||||||||
Investment grade | $ | 250 | $ | 8 | $ | 258 | |||||
Non-investment grade | 60 | 35 | 95 | ||||||||
Total | $ | 310 | $ | 43 | $ | 353 | |||||
Derivative assets | $ | 1,050 | $ | — | $ | 1,050 | |||||
Derivative liabilities | 140 | 45 | 185 |
Notes to Consolidated Financial Statements (Unaudited) |
Fair Value At June 30, 2021 | |||||||||||
$ in millions | Level 2 | Level 3 | Total | ||||||||
Retained interests | |||||||||||
Investment grade | $ | 702 | $ | 0 | $ | 702 | |||||
Non-investment grade | 12 | 50 | 62 | ||||||||
Total | $ | 714 | $ | 50 | $ | 764 | |||||
Interests purchased in the secondary market | |||||||||||
Investment grade | $ | 97 | $ | 1 | $ | 98 | |||||
Non-investment grade | 76 | 39 | 115 | ||||||||
Total | $ | 173 | $ | 40 | $ | 213 | |||||
Derivative assets | $ | 607 | $ | 1 | $ | 608 | |||||
Derivative liabilities | 163 | 34 | 197 |
Fair Value at December 31, 2020 | Fair Value at December 31, 2021 | |||||||||||||||||||||
$ in millions | $ in millions | Level 2 | Level 3 | Total | $ in millions | Level 2 | Level 3 | Total | ||||||||||||||
Retained interests | Retained interests | Retained interests | ||||||||||||||||||||
Investment grade | Investment grade | $ | 663 | $ | 0 | $ | 663 | Investment grade | $ | 536 | $ | 2 | $ | 538 | ||||||||
Non-investment grade | Non-investment grade | 6 | 63 | 69 | Non-investment grade | 40 | 40 | 80 | ||||||||||||||
Total | Total | $ | 669 | $ | 63 | $ | 732 | Total | $ | 576 | $ | 42 | $ | 618 | ||||||||
Interests purchased in the secondary market | Interests purchased in the secondary market | Interests purchased in the secondary market | ||||||||||||||||||||
Investment grade | Investment grade | $ | 196 | $ | 16 | $ | 212 | Investment grade | $ | 168 | $ | 1 | $ | 169 | ||||||||
Non-investment grade | Non-investment grade | 62 | 82 | 144 | Non-investment grade | 70 | 25 | 95 | ||||||||||||||
Total | Total | $ | 258 | $ | 98 | $ | 356 | Total | $ | 238 | $ | 26 | $ | 264 | ||||||||
Derivative assets | Derivative assets | $ | 388 | $ | 12 | $ | 400 | Derivative assets | $ | 891 | $ | — | $ | 891 | ||||||||
Derivative liabilities | Derivative liabilities | 435 | 1 | 436 | Derivative liabilities | 194 | 90 | 284 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||||||||||||
New transactions1 | New transactions1 | $ | 16,410 | $ | 9,189 | $ | 31,200 | $ | 17,660 | New transactions1 | $ | 8,260 | $ | 14,790 | ||||||||||||||
Retained interests | Retained interests | 2,985 | 1,136 | 5,564 | 5,224 | Retained interests | 1,622 | 2,579 | ||||||||||||||||||||
Sales of corporate loans to CLO SPEs1, 2 | Sales of corporate loans to CLO SPEs1, 2 | 73 | 73 | 73 | 139 | Sales of corporate loans to CLO SPEs1, 2 | 4 | — |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Gross cash proceeds from sale of assets1 | Gross cash proceeds from sale of assets1 | $ | 61,885 | $ | 45,051 | Gross cash proceeds from sale of assets1 | $ | 60,826 | $ | 67,930 | ||||||
Fair value | Fair value | Fair value | ||||||||||||||
Assets sold | Assets sold | $ | 63,544 | $ | 46,609 | Assets sold | $ | 62,015 | $ | 68,992 | ||||||
Derivative assets recognized in the balance sheets | 1,972 | 1,592 | ||||||||||||||
Derivative liabilities recognized in the balance sheets | 314 | 64 | ||||||||||||||
Derivative assets recognized in the balance sheet | Derivative assets recognized in the balance sheet | 1,474 | 1,195 | |||||||||||||
Derivative liabilities recognized in the balance sheet | Derivative liabilities recognized in the balance sheet | 284 | 132 |
Notes to Consolidated Financial Statements (Unaudited) |
At June 30, 2021 and December 31, 2020 | At March 31, 2022 and December 31, 2021 | ||||||||||||||||||||||||||||||
Standardized | Advanced | Standardized | Advanced | ||||||||||||||||||||||||||||
Capital buffers | Capital buffers | Capital buffers | |||||||||||||||||||||||||||||
Capital conservation buffer | Capital conservation buffer | — | 2.5% | Capital conservation buffer | — | 2.5% | |||||||||||||||||||||||||
SCB | SCB | 5.7% | N/A | SCB | 5.7% | N/A | |||||||||||||||||||||||||
G-SIB capital surcharge | G-SIB capital surcharge | 3.0% | G-SIB capital surcharge | 3.0% | |||||||||||||||||||||||||||
CCyB1 | CCyB1 | 0% | CCyB1 | 0% | |||||||||||||||||||||||||||
Capital buffer requirement2 | 8.7% | 5.5% | |||||||||||||||||||||||||||||
At June 30, 2021 and December 31, 2020 | |||||||||||||||||||||||||||||||
Regulatory Minimum | Standardized | Advanced | |||||||||||||||||||||||||||||
Required ratios3 | |||||||||||||||||||||||||||||||
Common Equity Tier 1 capital ratio | 4.5 | % | 13.2% | 10.0% | |||||||||||||||||||||||||||
Tier 1 capital ratio | 6.0 | % | 14.7% | 11.5% | |||||||||||||||||||||||||||
Total capital ratio | 8.0 | % | 16.7% | 13.5% | |||||||||||||||||||||||||||
Capital buffer requirement | Capital buffer requirement | 8.7% | 5.5% |
Regulatory Minimum | At March 31, 2022 and December 31, 2021 | ||||||||||||||||
Standardized | Advanced | ||||||||||||||||
Required ratios1 | |||||||||||||||||
Common Equity Tier 1 capital ratio | 4.5 | % | 13.2% | 10.0% | |||||||||||||
Tier 1 capital ratio | 6.0 | % | 14.7% | 11.5% | |||||||||||||
Total capital ratio | 8.0 | % | 16.7% | 13.5% |
$ in millions | $ in millions | Required Ratio1 | At June 30, 2021 | At December 31, 2020 | $ in millions | Required Ratio1 | At March 31, 2022 | At December 31, 2021 | |||||||||||||||||||||||||||||||||||
Risk-based capital | Risk-based capital | Risk-based capital | |||||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 capital | Common Equity Tier 1 capital | $ | 76,815 | $ | 78,650 | Common Equity Tier 1 capital | $ | 72,477 | $ | 75,742 | |||||||||||||||||||||||||||||||||
Tier 1 capital | Tier 1 capital | 84,612 | 88,079 | Tier 1 capital | 80,121 | 83,348 | |||||||||||||||||||||||||||||||||||||
Total capital | Total capital | 92,782 | 97,213 | Total capital | 89,468 | 93,166 | |||||||||||||||||||||||||||||||||||||
Total RWA | Total RWA | 462,808 | 453,106 | Total RWA | 501,429 | 471,921 | |||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 capital ratio | Common Equity Tier 1 capital ratio | 13.2 | % | 16.6 | % | 17.4 | % | Common Equity Tier 1 capital ratio | 13.2 | % | 14.5 | % | 16.0 | % | |||||||||||||||||||||||||||||
Tier 1 capital ratio | Tier 1 capital ratio | 14.7 | % | 18.3 | % | 19.4 | % | Tier 1 capital ratio | 14.7 | % | 16.0 | % | 17.7 | % | |||||||||||||||||||||||||||||
Total capital ratio | Total capital ratio | 16.7 | % | 20.0 | % | 21.5 | % | Total capital ratio | 16.7 | % | 17.8 | % | 19.7 | % | |||||||||||||||||||||||||||||
$ in millions | $ in millions | Required Ratio1 | At June 30, 2021 | At December 31, 2020 | $ in millions | Required Ratio1 | At March 31, 2022 | At December 31, 2021 | |||||||||||||||||||||||||||||||||||
Leverage-based capital | Leverage-based capital | Leverage-based capital | |||||||||||||||||||||||||||||||||||||||||
Adjusted average assets2 | Adjusted average assets2 | $ | 1,135,262 | $ | 1,053,510 | Adjusted average assets2 | $ | 1,184,494 | $ | 1,169,939 | |||||||||||||||||||||||||||||||||
Tier 1 leverage ratio | Tier 1 leverage ratio | 4.0 | % | 7.5 | % | 8.4 | % | Tier 1 leverage ratio | 4.0 | % | 6.8 | % | 7.1 | % | |||||||||||||||||||||||||||||
Supplementary leverage exposure3,4 | $ | 1,439,971 | $ | 1,192,506 | |||||||||||||||||||||||||||||||||||||||
SLR4 | 5.0 | % | 5.9 | % | 7.4 | % | |||||||||||||||||||||||||||||||||||||
Supplementary leverage exposure3 | Supplementary leverage exposure3 | $ | 1,466,624 | $ | 1,476,962 | ||||||||||||||||||||||||||||||||||||||
SLR | SLR | 5.0 | % | 5.5 | % | 5.6 | % |
Notes to Consolidated Financial Statements (Unaudited) |
At June 30, 2021 | At December 31, 2020 | Well-Capitalized Requirement | Required Ratio1 | At March 31, 2022 | At December 31, 2021 | |||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Well-Capitalized Requirement | Required Ratio1 | Amount | Ratio | Amount | Ratio | $ in millions | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||
Risk-based capital | Risk-based capital | Risk-based capital | ||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 capital | Common Equity Tier 1 capital | 6.5 | % | 7.0 | % | $ | 18,069 | 19.8 | % | $ | 17,238 | 18.7 | % | Common Equity Tier 1 capital | 6.5 | % | 7.0 | % | $ | 18,386 | 18.7 | % | $ | 18,960 | 20.5 | % | ||||||||||||||
Tier 1 capital | Tier 1 capital | 8.0 | % | 8.5 | % | 18,069 | 19.8 | % | 17,238 | 18.7 | % | Tier 1 capital | 8.0 | % | 8.5 | % | 18,386 | 18.7 | % | 18,960 | 20.5 | % | ||||||||||||||||||
Total capital | Total capital | 10.0 | % | 10.5 | % | 18,644 | 20.5 | % | 17,882 | 19.4 | % | Total capital | 10.0 | % | 10.5 | % | 18,961 | 19.3 | % | 19,544 | 21.1 | % | ||||||||||||||||||
Leverage-based capital | Leverage-based capital | Leverage-based capital | ||||||||||||||||||||||||||||||||||||||
Tier 1 leverage | Tier 1 leverage | 5.0 | % | 4.0 | % | $ | 18,069 | 10.4 | % | $ | 17,238 | 10.1 | % | Tier 1 leverage | 5.0 | % | 4.0 | % | $ | 18,386 | 9.3 | % | $ | 18,960 | 10.2 | % | ||||||||||||||
SLR | SLR | 6.0 | % | 3.0 | % | 18,069 | 8.1 | % | 17,238 | 8.0 | % | SLR | 6.0 | % | 3.0 | % | 18,386 | 7.4 | % | 18,960 | 8.1 | % |
At June 30, 2021 | At December 31, 2020 | Well-Capitalized Requirement | Required Ratio1 | At March 31, 20222 | At December 31, 2021 | |||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Well-Capitalized Requirement | Required Ratio1 | Amount | Ratio | Amount | Ratio | $ in millions | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||
Risk-based capital | Risk-based capital | Risk-based capital | ||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 capital | Common Equity Tier 1 capital | 6.5 | % | 7.0 | % | $ | 9,629 | 25.1 | % | $ | 8,213 | 21.3 | % | Common Equity Tier 1 capital | 6.5 | % | 7.0 | % | $ | 15,142 | 29.4 | % | $ | 10,293 | 24.3 | % | ||||||||||||||
Tier 1 capital | Tier 1 capital | 8.0 | % | 8.5 | % | 9,629 | 25.1 | % | 8,213 | 21.3 | % | Tier 1 capital | 8.0 | % | 8.5 | % | 15,142 | 29.4 | % | 10,293 | 24.3 | % | ||||||||||||||||||
Total capital | Total capital | 10.0 | % | 10.5 | % | 9,702 | 25.2 | % | 8,287 | 21.5 | % | Total capital | 10.0 | % | 10.5 | % | 15,237 | 29.6 | % | 10,368 | 24.5 | % | ||||||||||||||||||
Leverage-based capital | Leverage-based capital | Leverage-based capital | ||||||||||||||||||||||||||||||||||||||
Tier 1 leverage | Tier 1 leverage | 5.0 | % | 4.0 | % | $ | 9,629 | 7.4 | % | $ | 8,213 | 7.2 | % | Tier 1 leverage | 5.0 | % | 4.0 | % | $ | 15,142 | 7.4 | % | $ | 10,293 | 6.9 | % | ||||||||||||||
SLR | SLR | 6.0 | % | 3.0 | % | 9,629 | 7.1 | % | 8,213 | 6.9 | % | SLR | 6.0 | % | 3.0 | % | 15,142 | 7.3 | % | 10,293 | 6.7 | % |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Net capital | Net capital | $ | 16,739 | $ | 12,869 | Net capital | $ | 16,799 | $ | 18,383 | ||||||
Excess net capital | Excess net capital | 12,837 | 9,034 | Excess net capital | 12,261 | 14,208 |
Shares Outstanding | Carrying Value | Shares Outstanding | Carrying Value | |||||||||||||||||||||||||
$ in millions, except per share data | $ in millions, except per share data | At June 30, 2021 | Liquidation Preference per Share | At June 30, 2021 | At December 31, 2020 | $ in millions, except per share data | At March 31, 2022 | Liquidation Preference per Share | At March 31, 2022 | At December 31, 2021 | ||||||||||||||||||
Series | Series | Series | ||||||||||||||||||||||||||
A | A | 44,000 | $ | 25,000 | $ | 1,100 | $ | 1,100 | A | 44,000 | $ | 25,000 | $ | 1,100 | $ | 1,100 | ||||||||||||
C1 | C1 | 519,882 | 1,000 | 408 | 408 | C1 | 519,882 | 1,000 | 408 | 408 | ||||||||||||||||||
E | E | 34,500 | 25,000 | 862 | 862 | E | 34,500 | 25,000 | 862 | 862 | ||||||||||||||||||
F | F | 34,000 | 25,000 | 850 | 850 | F | 34,000 | 25,000 | 850 | 850 | ||||||||||||||||||
H | 52,000 | 25,000 | 1,300 | 1,300 | ||||||||||||||||||||||||
I | I | 40,000 | 25,000 | 1,000 | 1,000 | I | 40,000 | 25,000 | 1,000 | 1,000 | ||||||||||||||||||
J | 0 | 0 | 0 | 1,500 | ||||||||||||||||||||||||
K | K | 40,000 | 25,000 | 1,000 | 1,000 | K | 40,000 | 25,000 | 1,000 | 1,000 | ||||||||||||||||||
L | L | 20,000 | 25,000 | 500 | 500 | L | 20,000 | 25,000 | 500 | 500 | ||||||||||||||||||
M | M | 400,000 | 1,000 | 430 | 430 | M | 400,000 | 1,000 | 430 | 430 | ||||||||||||||||||
N | N | 3,000 | 100,000 | 300 | 300 | N | 3,000 | 100,000 | 300 | 300 | ||||||||||||||||||
O | O | 52,000 | 25,000 | 1,300 | 1,300 | |||||||||||||||||||||||
Total | Total | $ | 7,750 | $ | 9,250 | Total | $ | 7,750 | $ | 7,750 | ||||||||||||||||||
Shares authorized | Shares authorized | 30,000,000 | Shares authorized | 30,000,000 |
(Unaudited) |
59 | March 2022 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||||||||||||
Repurchases of common stock under the Firm’s Share Repurchase Program | Repurchases of common stock under the Firm’s Share Repurchase Program | $ | 2,939 | $ | 0 | $ | 5,074 | $ | 1,347 | Repurchases of common stock under the Firm’s Share Repurchase Program | $ | 2,872 | $ | 2,135 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
in millions | in millions | 2021 | 2020 | 2021 | 2020 | in millions | 2022 | 2021 | ||||||||||||||||||||
Weighted average common shares outstanding, basic | Weighted average common shares outstanding, basic | 1,814 | 1,541 | 1,804 | 1,548 | Weighted average common shares outstanding, basic | 1,733 | 1,795 | ||||||||||||||||||||
Effect of dilutive Stock options, RSUs and PSUs | 27 | 16 | 25 | 17 | ||||||||||||||||||||||||
Effect of dilutive RSUs and PSUs | Effect of dilutive RSUs and PSUs | 22 | 23 | |||||||||||||||||||||||||
Weighted average common shares outstanding and common stock equivalents, diluted | Weighted average common shares outstanding and common stock equivalents, diluted | 1,841 | 1,557 | 1,829 | 1,565 | Weighted average common shares outstanding and common stock equivalents, diluted | 1,755 | 1,818 | ||||||||||||||||||||
Weighted average antidilutive common stock equivalents (excluded from the computation of diluted EPS) | Weighted average antidilutive common stock equivalents (excluded from the computation of diluted EPS) | 0 | 8 | 0 | 10 | Weighted average antidilutive common stock equivalents (excluded from the computation of diluted EPS) | 5 | 1 |
$ in millions, except per share data | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | ||||||||||||
Per Share1 | Total | Per Share1 | Total | |||||||||||
Preferred stock series | ||||||||||||||
A | $ | 253 | $ | 11 | $ | 253 | $ | 11 | ||||||
C | 25 | 13 | 25 | 13 | ||||||||||
E | 445 | 15 | 445 | 15 | ||||||||||
F | 430 | 15 | 430 | 15 | ||||||||||
H | 240 | 12 | 305 | 16 | ||||||||||
I | 398 | 16 | 398 | 16 | ||||||||||
J2 | 0 | 0 | 694 | 42 | ||||||||||
K | 366 | 15 | 366 | 15 | ||||||||||
L | 305 | 6 | 305 | 6 | ||||||||||
Total Preferred stock | $ | 103 | $ | 149 | ||||||||||
Common stock | 0.35 | $ | 651 | $ | 0.35 | $ | 550 |
$ in millions, except per share data | $ in millions, except per share data | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | $ in millions, except per share data | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | ||||||||||||||||||||||
Per Share1 | Total | Per Share1 | Total | Per Share1 | Total | Per Share1 | Total | |||||||||||||||||||||
Preferred stock series | Preferred stock series | Preferred stock series | ||||||||||||||||||||||||||
A | A | $ | 503 | $ | 22 | $ | 506 | $ | 22 | A | $ | 242 | $ | 11 | $ | 250 | $ | 11 | ||||||||||
C | C | 50 | 26 | 50 | 26 | C | 25 | 13 | 25 | 13 | ||||||||||||||||||
E | E | 891 | 30 | 891 | 30 | E | 445 | 15 | 445 | 15 | ||||||||||||||||||
F | F | 859 | 29 | 859 | 29 | F | 430 | 14 | 430 | 14 | ||||||||||||||||||
H | 480 | 25 | 649 | 34 | ||||||||||||||||||||||||
H2 | H2 | — | — | 241 | 13 | |||||||||||||||||||||||
I | I | 797 | 32 | 797 | 32 | I | 398 | 16 | 398 | 16 | ||||||||||||||||||
J2 | 253 | 15 | 694 | 42 | ||||||||||||||||||||||||
J3 | J3 | — | — | 253 | 15 | |||||||||||||||||||||||
K | K | 731 | 30 | 731 | 30 | K | 366 | 15 | 366 | 15 | ||||||||||||||||||
L | L | 609 | 12 | 609 | 12 | L | 305 | 6 | 305 | 6 | ||||||||||||||||||
M3 | 29 | 12 | 0 | 0 | ||||||||||||||||||||||||
N4 | 2,650 | 8 | 0 | 0 | ||||||||||||||||||||||||
M4 | M4 | 29 | 12 | 29 | 12 | |||||||||||||||||||||||
N5 | N5 | 2,650 | 8 | 2,650 | 8 | |||||||||||||||||||||||
O6 | O6 | 266 | 14 | — | — | |||||||||||||||||||||||
Total Preferred stock | Total Preferred stock | $ | 241 | $ | 257 | Total Preferred stock | $ | 124 | $ | 138 | ||||||||||||||||||
Common stock | Common stock | $ | 0.70 | $ | 1,286 | $ | 0.70 | $ | 1,111 | Common stock | $ | 0.70 | $ | 1,252 | $ | 0.35 | $ | 635 |
$ in millions | $ in millions | CTA | AFS Securities | Pension and Other | DVA | Total | $ in millions | CTA | AFS Securities | Pension and Other | DVA | Total | ||||||||||||||||||||||
March 31, 2021 | $ | (936) | $ | 1,011 | $ | (493) | $ | (2,336) | $ | (2,754) | ||||||||||||||||||||||||
December 31, 2021 | December 31, 2021 | $ | (1,002) | $ | 245 | $ | (551) | $ | (1,794) | $ | (3,102) | |||||||||||||||||||||||
OCI during the period | OCI during the period | 41 | (7) | 12 | 185 | 231 | OCI during the period | (48) | (2,395) | 5 | 638 | (1,800) | ||||||||||||||||||||||
June 30, 2021 | $ | (895) | $ | 1,004 | $ | (481) | $ | (2,151) | $ | (2,523) | ||||||||||||||||||||||||
March 31, 2020 | $ | (1,038) | $ | 1,532 | $ | (619) | $ | 2,220 | $ | 2,095 | ||||||||||||||||||||||||
OCI during the period | 21 | 295 | (1) | (2,409) | (2,094) | |||||||||||||||||||||||||||||
June 30, 2020 | $ | (1,017) | $ | 1,827 | $ | (620) | $ | (189) | $ | 1 | ||||||||||||||||||||||||
March 31, 2022 | March 31, 2022 | $ | (1,050) | $ | (2,150) | $ | (546) | $ | (1,156) | $ | (4,902) | |||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | $ | (795) | $ | 1,787 | $ | (498) | $ | (2,456) | $ | (1,962) | December 31, 2020 | $ | (795) | $ | 1,787 | $ | (498) | $ | (2,456) | $ | (1,962) | ||||||||||||
OCI during the period | OCI during the period | (100) | (783) | 17 | 305 | (561) | OCI during the period | (141) | (776) | 5 | 120 | (792) | ||||||||||||||||||||||
June 30, 2021 | $ | (895) | $ | 1,004 | $ | (481) | $ | (2,151) | $ | (2,523) | ||||||||||||||||||||||||
December 31, 2019 | $ | (897) | $ | 207 | $ | (644) | $ | (1,454) | $ | (2,788) | ||||||||||||||||||||||||
OCI during the period | (120) | 1,620 | 24 | 1,265 | 2,789 | |||||||||||||||||||||||||||||
June 30, 2020 | $ | (1,017) | $ | 1,827 | $ | (620) | $ | (189) | $ | 1 | ||||||||||||||||||||||||
March 31, 2021 | March 31, 2021 | $ | (936) | $ | 1,011 | $ | (493) | $ | (2,336) | $ | (2,754) |
Three Months Ended June 30, 2021 | Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non- controlling Interests | Net | $ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non- controlling Interests | Net | ||||||||||||||||||||||
CTA | CTA | CTA | ||||||||||||||||||||||||||||||||
OCI activity | OCI activity | $ | 12 | $ | 29 | $ | 41 | $ | 0 | $ | 41 | OCI activity | $ | (60) | $ | (45) | $ | (105) | $ | (57) | $ | (48) | ||||||||||||
Reclassified to earnings | Reclassified to earnings | 0 | 0 | 0 | 0 | 0 | Reclassified to earnings | — | — | — | — | — | ||||||||||||||||||||||
Net OCI | Net OCI | $ | 12 | $ | 29 | $ | 41 | $ | 0 | $ | 41 | Net OCI | $ | (60) | $ | (45) | $ | (105) | $ | (57) | $ | (48) | ||||||||||||
Change in net unrealized gains (losses) on AFS securities | Change in net unrealized gains (losses) on AFS securities | Change in net unrealized gains (losses) on AFS securities | ||||||||||||||||||||||||||||||||
OCI activity | OCI activity | $ | 47 | $ | (10) | $ | 37 | $ | 0 | $ | 37 | OCI activity | $ | (3,084) | $ | 723 | $ | (2,361) | $ | — | $ | (2,361) | ||||||||||||
Reclassified to earnings | Reclassified to earnings | (58) | 14 | (44) | 0 | (44) | Reclassified to earnings | (44) | 10 | (34) | — | (34) | ||||||||||||||||||||||
Net OCI | Net OCI | $ | (11) | $ | 4 | $ | (7) | $ | 0 | $ | (7) | Net OCI | $ | (3,128) | $ | 733 | $ | (2,395) | $ | — | $ | (2,395) | ||||||||||||
Pension and other | Pension and other | Pension and other | ||||||||||||||||||||||||||||||||
OCI activity | OCI activity | $ | 8 | $ | 0 | $ | 8 | $ | 0 | $ | 8 | OCI activity | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Reclassified to earnings | Reclassified to earnings | 7 | (3) | 4 | 0 | 4 | Reclassified to earnings | 5 | — | 5 | — | 5 | ||||||||||||||||||||||
Net OCI | Net OCI | $ | 15 | $ | (3) | $ | 12 | $ | 0 | $ | 12 | Net OCI | $ | 5 | $ | — | $ | 5 | $ | — | $ | 5 | ||||||||||||
Change in net DVA | Change in net DVA | Change in net DVA | ||||||||||||||||||||||||||||||||
OCI activity | OCI activity | $ | 237 | $ | (59) | $ | 178 | $ | 1 | $ | 177 | OCI activity | $ | 871 | $ | (211) | $ | 660 | $ | 22 | $ | 638 | ||||||||||||
Reclassified to earnings | Reclassified to earnings | 10 | (2) | 8 | 0 | 8 | Reclassified to earnings | — | — | — | — | — | ||||||||||||||||||||||
Net OCI | Net OCI | $ | 247 | $ | (61) | $ | 186 | $ | 1 | $ | 185 | Net OCI | $ | 871 | $ | (211) | $ | 660 | $ | 22 | $ | 638 |
Three Months Ended March 31, 2021 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non- controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | (104) | $ | (115) | $ | (219) | $ | (78) | $ | (141) | |||||||
Reclassified to earnings | — | — | — | — | — | ||||||||||||
Net OCI | $ | (104) | $ | (115) | $ | (219) | $ | (78) | $ | (141) | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | (876) | $ | 203 | $ | (673) | $ | — | $ | (673) | |||||||
Reclassified to earnings | (134) | 31 | (103) | — | (103) | ||||||||||||
Net OCI | $ | (1,010) | $ | 234 | $ | (776) | $ | — | $ | (776) | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||
Reclassified to earnings | 7 | (2) | 5 | — | 5 | ||||||||||||
Net OCI | $ | 7 | $ | (2) | $ | 5 | $ | — | $ | 5 | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | 167 | $ | (43) | $ | 124 | $ | 17 | $ | 107 | |||||||
Reclassified to earnings | 17 | (4) | 13 | — | 13 | ||||||||||||
Net OCI | $ | 184 | $ | (47) | $ | 137 | $ | 17 | $ | 120 |
Notes to Consolidated Financial Statements (Unaudited) |
Three Months Ended June 30, 2020 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non- controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | 5 | $ | 19 | $ | 24 | $ | 0 | $ | 24 | |||||||
Reclassified to earnings | (3) | 0 | (3) | 0 | (3) | ||||||||||||
Net OCI | $ | 2 | $ | 19 | $ | 21 | $ | 0 | $ | 21 | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | 395 | $ | (93) | $ | 302 | $ | 0 | $ | 302 | |||||||
Reclassified to earnings | (10) | 3 | (7) | 0 | (7) | ||||||||||||
Net OCI | $ | 385 | $ | (90) | $ | 295 | $ | 0 | $ | 295 | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | (4) | $ | (1) | $ | (5) | $ | 0 | $ | (5) | |||||||
Reclassified to earnings | 5 | (1) | 4 | 0 | 4 | ||||||||||||
Net OCI | $ | 1 | $ | (2) | $ | (1) | $ | 0 | $ | (1) | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | (3,301) | $ | 805 | $ | (2,496) | $ | (87) | $ | (2,409) | |||||||
Reclassified to earnings | 1 | (1) | 0 | 0 | 0 | ||||||||||||
Net OCI | $ | (3,300) | $ | 804 | $ | (2,496) | $ | (87) | $ | (2,409) |
Six Months Ended June 30, 2021 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non- controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | (92) | $ | (86) | $ | (178) | $ | (78) | $ | (100) | |||||||
Reclassified to earnings | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net OCI | $ | (92) | $ | (86) | $ | (178) | $ | (78) | $ | (100) | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | (829) | $ | 193 | $ | (636) | $ | 0 | $ | (636) | |||||||
Reclassified to earnings | (192) | 45 | (147) | 0 | (147) | ||||||||||||
Net OCI | $ | (1,021) | $ | 238 | $ | (783) | $ | 0 | $ | (783) | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | 8 | $ | 0 | $ | 8 | $ | 0 | $ | 8 | |||||||
Reclassified to earnings | 14 | (5) | 9 | 0 | 9 | ||||||||||||
Net OCI | $ | 22 | $ | (5) | $ | 17 | $ | 0 | $ | 17 | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | 404 | $ | (102) | $ | 302 | $ | 18 | $ | 284 | |||||||
Reclassified to earnings | 27 | (6) | 21 | 0 | 21 | ||||||||||||
Net OCI | $ | 431 | $ | (108) | $ | 323 | $ | 18 | $ | 305 |
Six Months Ended June 30, 2020 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non- controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | (15) | $ | (93) | $ | (108) | $ | 9 | $ | (117) | |||||||
Reclassified to earnings | (3) | 0 | (3) | 0 | (3) | ||||||||||||
Net OCI | $ | (18) | $ | (93) | $ | (111) | $ | 9 | $ | (120) | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | 2,168 | $ | (509) | $ | 1,659 | $ | 0 | $ | 1,659 | |||||||
Reclassified to earnings | (51) | 12 | (39) | 0 | (39) | ||||||||||||
Net OCI | $ | 2,117 | $ | (497) | $ | 1,620 | $ | 0 | $ | 1,620 | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | 21 | $ | (5) | $ | 16 | $ | 0 | $ | 16 | |||||||
Reclassified to earnings | 10 | (2) | 8 | 0 | 8 | ||||||||||||
Net OCI | $ | 31 | $ | (7) | $ | 24 | $ | 0 | $ | 24 | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | 1,714 | $ | (411) | $ | 1,303 | $ | 42 | $ | 1,261 | |||||||
Reclassified to earnings | 6 | (2) | 4 | 0 | 4 | ||||||||||||
Net OCI | $ | 1,720 | $ | (413) | $ | 1,307 | $ | 42 | $ | 1,265 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||||||||||||
Interest income | Interest income | Interest income | ||||||||||||||||||||||||||
Investment securities | Investment securities | $ | 608 | $ | 629 | $ | 1,457 | $ | 1,074 | Investment securities | $ | 777 | $ | 849 | ||||||||||||||
Loans | Loans | 1,040 | 1,050 | 2,028 | 2,204 | Loans | 1,156 | 988 | ||||||||||||||||||||
Securities purchased under agreements to resell and Securities borrowed1 | (321) | (141) | (617) | 257 | ||||||||||||||||||||||||
Securities purchased under agreements to resell1,2 | Securities purchased under agreements to resell1,2 | 13 | (55) | |||||||||||||||||||||||||
Securities borrowed1,3 | Securities borrowed1,3 | (217) | (241) | |||||||||||||||||||||||||
Trading assets, net of Trading liabilities | Trading assets, net of Trading liabilities | 486 | 616 | 996 | 1,365 | Trading assets, net of Trading liabilities | 524 | 510 | ||||||||||||||||||||
Customer receivables and Other2 | 399 | 204 | 785 | 961 | ||||||||||||||||||||||||
Customer receivables and Other4 | Customer receivables and Other4 | 397 | 386 | |||||||||||||||||||||||||
Total interest income | Total interest income | $ | 2,212 | $ | 2,358 | $ | 4,649 | $ | 5,861 | Total interest income | $ | 2,650 | $ | 2,437 | ||||||||||||||
Interest expense | Interest expense | Interest expense | ||||||||||||||||||||||||||
Deposits | Deposits | $ | 108 | $ | 220 | $ | 228 | $ | 626 | Deposits | $ | 73 | $ | 120 | ||||||||||||||
Borrowings | Borrowings | 719 | 823 | 1,433 | 1,820 | Borrowings | 685 | 714 | ||||||||||||||||||||
Securities sold under agreements to repurchase and Securities loaned3 | 116 | 209 | 230 | 718 | ||||||||||||||||||||||||
Customer payables and Other4 | (596) | (494) | (1,135) | (259) | ||||||||||||||||||||||||
Securities sold under agreements to repurchase1,5 | Securities sold under agreements to repurchase1,5 | 49 | 37 | |||||||||||||||||||||||||
Securities loaned1,6 | Securities loaned1,6 | 93 | 77 | |||||||||||||||||||||||||
Customer payables and Other7 | Customer payables and Other7 | (466) | (539) | |||||||||||||||||||||||||
Total interest expense | Total interest expense | $ | 347 | $ | 758 | $ | 756 | $ | 2,905 | Total interest expense | $ | 434 | $ | 409 | ||||||||||||||
Net interest | Net interest | $ | 1,865 | $ | 1,600 | $ | 3,893 | $ | 2,956 | Net interest | $ | 2,216 | $ | 2,028 |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Customer and other receivables | Customer and other receivables | $ | 2,160 | $ | 1,652 | Customer and other receivables | $ | 2,309 | $ | 1,800 | ||||||
Customer and other payables | Customer and other payables | 2,517 | 2,119 | Customer and other payables | 2,659 | 2,164 |
(Unaudited) |
Three Months Ended June 30, 2021 | |||||||||||||||||
$ in millions | IS | WM | IM | I/E | Total | ||||||||||||
Investment banking | $ | 2,376 | $ | 203 | $ | 0 | $ | (19) | $ | 2,560 | |||||||
Trading | 3,078 | 255 | (22) | 19 | 3,330 | ||||||||||||
Investments | 61 | 14 | 306 | 0 | 381 | ||||||||||||
Commissions and fees1 | 682 | 714 | 1 | (89) | 1,308 | ||||||||||||
Asset management1,2 | 148 | 3,447 | 1,418 | (40) | 4,973 | ||||||||||||
Other | 137 | 207 | 1 | (3) | 342 | ||||||||||||
Total non-interest revenues | 6,482 | 4,840 | 1,704 | (132) | 12,894 | ||||||||||||
Interest income | 873 | 1,366 | 10 | (37) | 2,212 | ||||||||||||
Interest expense | 263 | 111 | 12 | (39) | 347 | ||||||||||||
Net interest | 610 | 1,255 | (2) | 2 | 1,865 | ||||||||||||
Net revenues | $ | 7,092 | $ | 6,095 | $ | 1,702 | $ | (130) | $ | 14,759 | |||||||
Provision for credit losses | $ | 70 | $ | 3 | $ | 0 | $ | 0 | $ | 73 | |||||||
Compensation and benefits | 2,433 | 3,275 | 715 | 0 | 6,423 | ||||||||||||
Non-compensation expenses | 2,091 | 1,181 | 557 | (132) | 3,697 | ||||||||||||
Total non-interest expenses | $ | 4,524 | $ | 4,456 | $ | 1,272 | $ | (132) | $ | 10,120 | |||||||
Income before provision for income taxes | $ | 2,498 | $ | 1,636 | $ | 430 | $ | 2 | $ | 4,566 | |||||||
Provision for income taxes | 574 | 372 | 108 | 0 | 1,054 | ||||||||||||
Net income | 1,924 | 1,264 | 322 | 2 | 3,512 | ||||||||||||
Net income applicable to noncontrolling interests | 20 | 0 | (19) | 0 | 1 | ||||||||||||
Net income applicable to Morgan Stanley | $ | 1,904 | $ | 1,264 | $ | 341 | $ | 2 | $ | 3,511 |
Three Months Ended June 30, 2020 | |||||||||||||||||
$ in millions | IS | WM | IM | I/E | Total | ||||||||||||
Investment banking | $ | 2,051 | $ | 110 | $ | 0 | $ | (19) | $ | 2,142 | |||||||
Trading3 | 4,272 | 492 | 22 | 17 | 4,803 | ||||||||||||
Investments | 36 | 8 | 231 | 0 | 275 | ||||||||||||
Commissions and fees1 | 717 | 473 | 0 | (88) | 1,102 | ||||||||||||
Asset management1,2 | 115 | 2,507 | 684 | (41) | 3,265 | ||||||||||||
Other3 | 439 | 84 | (47) | (3) | 473 | ||||||||||||
Total non-interest revenues | 7,630 | 3,674 | 890 | (134) | 12,060 | ||||||||||||
Interest income | 1,300 | 1,210 | 7 | (159) | 2,358 | ||||||||||||
Interest expense | 731 | 180 | 11 | (164) | 758 | ||||||||||||
Net interest | 569 | 1,030 | (4) | 5 | 1,600 | ||||||||||||
Net revenues3 | $ | 8,199 | $ | 4,704 | $ | 886 | $ | (129) | $ | 13,660 | |||||||
Provision for credit losses3 | $ | 217 | $ | 22 | $ | 0 | $ | 0 | $ | 239 | |||||||
Compensation and benefits | 2,952 | 2,729 | 354 | 0 | 6,035 | ||||||||||||
Non-compensation expenses3 | 2,037 | 811 | 316 | (133) | 3,031 | ||||||||||||
Total non-interest expenses3 | $ | 4,989 | $ | 3,540 | $ | 670 | $ | (133) | $ | 9,066 | |||||||
Income before provision for income taxes | $ | 2,993 | $ | 1,142 | $ | 216 | $ | 4 | $ | 4,355 | |||||||
Provision for income taxes | 790 | 289 | 39 | 1 | 1,119 | ||||||||||||
Net income | 2,203 | 853 | 177 | 3 | 3,236 | ||||||||||||
Net income applicable to noncontrolling interests | 17 | 0 | 23 | 0 | 40 | ||||||||||||
Net income applicable to Morgan Stanley | $ | 2,186 | $ | 853 | $ | 154 | $ | 3 | $ | 3,196 |
Three Months Ended March 31, 2022 | |||||||||||||||||
$ in millions | IS | WM | IM | I/E | Total | ||||||||||||
Investment banking | $ | 1,634 | $ | 143 | $ | — | $ | (19) | $ | 1,758 | |||||||
Trading | 4,205 | (231) | (9) | 18 | 3,983 | ||||||||||||
Investments | 99 | 12 | (36) | — | 75 | ||||||||||||
Commissions and fees1 | 774 | 723 | — | (81) | 1,416 | ||||||||||||
Asset management1,2 | 147 | 3,626 | 1,388 | (42) | 5,119 | ||||||||||||
Other | 117 | 122 | (2) | (3) | 234 | ||||||||||||
Total non-interest revenues | 6,976 | 4,395 | 1,341 | (127) | 12,585 | ||||||||||||
Interest income | 1,062 | 1,637 | 7 | (56) | 2,650 | ||||||||||||
Interest expense | 381 | 97 | 13 | (57) | 434 | ||||||||||||
Net interest | 681 | 1,540 | (6) | 1 | 2,216 | ||||||||||||
Net revenues | $ | 7,657 | $ | 5,935 | $ | 1,335 | $ | (126) | $ | 14,801 | |||||||
Provision for credit losses | $ | 44 | $ | 13 | $ | — | $ | — | $ | 57 | |||||||
Compensation and benefits | 2,604 | 3,125 | 545 | — | 6,274 | ||||||||||||
Non-compensation expenses | 2,222 | 1,224 | 562 | (126) | 3,882 | ||||||||||||
Total non-interest expenses | $ | 4,826 | $ | 4,349 | $ | 1,107 | $ | (126) | $ | 10,156 | |||||||
Income before provision for income taxes | $ | 2,787 | $ | 1,573 | $ | 228 | $ | — | $ | 4,588 | |||||||
Provision for income taxes | 535 | 301 | 37 | — | 873 | ||||||||||||
Net income | 2,252 | 1,272 | 191 | — | 3,715 | ||||||||||||
Net income applicable to noncontrolling interests | 61 | — | (12) | — | 49 | ||||||||||||
Net income applicable to Morgan Stanley | $ | 2,191 | $ | 1,272 | $ | 203 | $ | — | $ | 3,666 |
Six Months Ended June 30, 2021 | |||||||||||||||||
$ in millions | IS | WM | IM | I/E | Total | ||||||||||||
Investment banking | $ | 4,989 | $ | 454 | $ | 0 | $ | (43) | $ | 5,400 | |||||||
Trading | 7,151 | 381 | (19) | 42 | 7,555 | ||||||||||||
Investments | 147 | 16 | 536 | 0 | 699 | ||||||||||||
Commissions and fees1 | 1,552 | 1,565 | 1 | (184) | 2,934 | ||||||||||||
Asset management1,2 | 287 | 6,638 | 2,521 | (75) | 9,371 | ||||||||||||
Other | 295 | 360 | (23) | (6) | 626 | ||||||||||||
Total non-interest revenues | 14,421 | 9,414 | 3,016 | (266) | 26,585 | ||||||||||||
Interest income | 1,843 | 2,852 | 18 | (64) | 4,649 | ||||||||||||
Interest expense | 595 | 212 | 18 | (69) | 756 | ||||||||||||
Net interest | 1,248 | 2,640 | 0 | 5 | 3,893 | ||||||||||||
Net revenues | $ | 15,669 | $ | 12,054 | $ | 3,016 | $ | (261) | $ | 30,478 | |||||||
Provision for credit losses | $ | (23) | $ | (2) | $ | 0 | $ | 0 | $ | (25) | |||||||
Compensation and benefits | 5,547 | 6,445 | 1,229 | 0 | 13,221 | ||||||||||||
Non-compensation expenses | 4,276 | 2,375 | 987 | (266) | 7,372 | ||||||||||||
Total non-interest expenses | $ | 9,823 | $ | 8,820 | $ | 2,216 | $ | (266) | $ | 20,593 | |||||||
Income before provision for income taxes | $ | 5,869 | $ | 3,236 | $ | 800 | $ | 5 | $ | 9,910 | |||||||
Provision for income taxes | 1,310 | 730 | 189 | 1 | 2,230 | ||||||||||||
Net income | 4,559 | 2,506 | 611 | 4 | 7,680 | ||||||||||||
Net income applicable to noncontrolling interests | 54 | 0 | (5) | 0 | 49 | ||||||||||||
Net income applicable to Morgan Stanley | $ | 4,505 | $ | 2,506 | $ | 616 | $ | 4 | $ | 7,631 |
Six Months Ended June 30, 2020 | |||||||||||||||||
$ in millions | IS | WM | IM | I/E | Total | ||||||||||||
Investment banking | $ | 3,195 | $ | 268 | $ | 0 | $ | (50) | $ | 3,413 | |||||||
Trading3 | 7,433 | 145 | (15) | 41 | 7,604 | ||||||||||||
Investments | 11 | 8 | 294 | 0 | 313 | ||||||||||||
Commissions and fees1 | 1,591 | 1,061 | 0 | (190) | 2,462 | ||||||||||||
Asset management1,2 | 228 | 5,187 | 1,349 | (82) | 6,682 | ||||||||||||
Other3 | (112) | 165 | (40) | (4) | 9 | ||||||||||||
Total non-interest revenues | 12,346 | 6,834 | 1,588 | (285) | 20,483 | ||||||||||||
Interest income | 3,723 | 2,403 | 15 | (280) | 5,861 | ||||||||||||
Interest expense | 2,692 | 477 | 25 | (289) | 2,905 | ||||||||||||
Net interest | 1,031 | 1,926 | (10) | 9 | 2,956 | ||||||||||||
Net revenues3 | $ | 13,377 | $ | 8,760 | $ | 1,578 | $ | (276) | $ | 23,439 | |||||||
Provision for credit losses3 | $ | 605 | $ | 41 | $ | 0 | $ | 0 | $ | 646 | |||||||
Compensation and benefits | 4,766 | 4,941 | 611 | 0 | 10,318 | ||||||||||||
Non-compensation expenses3 | 4,063 | 1,581 | 608 | (278) | 5,974 | ||||||||||||
Total non-interest expenses3 | $ | 8,829 | $ | 6,522 | $ | 1,219 | $ | (278) | $ | 16,292 | |||||||
Income before provision for income taxes | $ | 3,943 | $ | 2,197 | $ | 359 | $ | 2 | $ | 6,501 | |||||||
Provision for income taxes | 941 | 480 | 64 | 0 | 1,485 | ||||||||||||
Net income | 3,002 | 1,717 | 295 | 2 | 5,016 | ||||||||||||
Net income applicable to noncontrolling interests | 59 | 0 | 63 | 0 | 122 | ||||||||||||
Net income applicable to Morgan Stanley | $ | 2,943 | $ | 1,717 | $ | 232 | $ | 2 | $ | 4,894 |
Three Months Ended March 31, 2021 | |||||||||||||||||
$ in millions | IS | WM | IM | I/E | Total | ||||||||||||
Investment banking | $ | 2,613 | $ | 251 | $ | — | $ | (24) | $ | 2,840 | |||||||
Trading | 4,073 | 126 | 3 | 23 | 4,225 | ||||||||||||
Investments | 86 | 2 | 230 | — | 318 | ||||||||||||
Commissions and fees1 | 870 | 851 | — | (95) | 1,626 | ||||||||||||
Asset management1,2 | 139 | 3,191 | 1,103 | (35) | 4,398 | ||||||||||||
Other | 158 | 153 | (24) | (3) | 284 | ||||||||||||
Total non-interest revenues | 7,939 | 4,574 | 1,312 | (134) | 13,691 | ||||||||||||
Interest income | 970 | 1,486 | 8 | (27) | 2,437 | ||||||||||||
Interest expense | 332 | 101 | 6 | (30) | 409 | ||||||||||||
Net interest | 638 | 1,385 | 2 | 3 | 2,028 | ||||||||||||
Net revenues | $ | 8,577 | $ | 5,959 | $ | 1,314 | $ | (131) | $ | 15,719 | |||||||
Provision for credit losses | $ | (93) | $ | (5) | $ | — | $ | — | $ | (98) | |||||||
Compensation and benefits | 3,114 | 3,170 | 514 | — | 6,798 | ||||||||||||
Non-compensation expenses | 2,185 | 1,194 | 430 | (134) | 3,675 | ||||||||||||
Total non-interest expenses | $ | 5,299 | $ | 4,364 | $ | 944 | $ | (134) | $ | 10,473 | |||||||
Income before provision for income taxes | $ | 3,371 | $ | 1,600 | $ | 370 | $ | 3 | $ | 5,344 | |||||||
Provision for income taxes | 736 | 358 | 81 | 1 | 1,176 | ||||||||||||
Net income | 2,635 | 1,242 | 289 | 2 | 4,168 | ||||||||||||
Net income applicable to noncontrolling interests | 34 | — | 14 | — | 48 | ||||||||||||
Net income applicable to Morgan Stanley | $ | 2,601 | $ | 1,242 | $ | 275 | $ | 2 | $ | 4,120 |
61 |
Notes to Consolidated Financial Statements (Unaudited) |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||||||||||||
Institutional Securities Advisory | Institutional Securities Advisory | $ | 664 | $ | 462 | $ | 1,144 | $ | 824 | Institutional Securities Advisory | $ | 944 | $ | 480 | ||||||||||||||
Institutional Securities Underwriting | Institutional Securities Underwriting | 1,712 | 1,589 | 3,845 | 2,371 | Institutional Securities Underwriting | 690 | 2,133 | ||||||||||||||||||||
Firm Investment banking revenues from contracts with customers | Firm Investment banking revenues from contracts with customers | 90 | % | 92 | % | 91 | % | 91 | % | Firm Investment banking revenues from contracts with customers | 90 | % | 92 | % |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||||||||||||
Interest rate | Interest rate | $ | 17 | $ | 1,008 | $ | 876 | $ | 2,082 | Interest rate | $ | 391 | $ | 859 | ||||||||||||||
Foreign exchange | Foreign exchange | 314 | 127 | 588 | 465 | Foreign exchange | 648 | 274 | ||||||||||||||||||||
Equity security and index2 | 2,033 | 1,943 | 3,728 | 3,016 | ||||||||||||||||||||||||
Equity1 | Equity1 | 2,007 | 1,695 | |||||||||||||||||||||||||
Commodity and other | Commodity and other | 680 | 723 | 1,541 | 733 | Commodity and other | 525 | 861 | ||||||||||||||||||||
Credit | Credit | 286 | 1,002 | 822 | 1,308 | Credit | 412 | 536 | ||||||||||||||||||||
Total | Total | $ | 3,330 | $ | 4,803 | $ | 7,555 | $ | 7,604 | Total | $ | 3,983 | $ | 4,225 |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Net cumulative unrealized performance-based income at risk of reversing | $ | 778 | $ | 735 | ||||||||||||
Net cumulative unrealized performance-based fees at risk of reversing | Net cumulative unrealized performance-based fees at risk of reversing | $ | 824 | $ | 802 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||||||||||||
Fee waivers | Fee waivers | $ | 131 | $ | 22 | $ | 225 | $ | 33 | Fee waivers | $ | 124 | $ | 94 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||||||||||||
Transaction taxes | Transaction taxes | $ | 217 | $ | 146 | $ | 455 | $ | 330 | Transaction taxes | $ | 258 | $ | 238 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Americas | $ | 10,885 | $ | 9,950 | $ | 22,076 | $ | 16,838 | ||||||
EMEA | 2,093 | 2,109 | 4,252 | 3,306 | ||||||||||
Asia | 1,781 | 1,601 | 4,150 | 3,295 | ||||||||||
Total | $ | 14,759 | $ | 13,660 | $ | 30,478 | $ | 23,439 |
Three Months Ended March 31, | ||||||||||||||
$ in millions | 2022 | 2021 | ||||||||||||
Americas | $ | 10,464 | $ | 11,191 | ||||||||||
EMEA | 2,311 | 2,159 | ||||||||||||
Asia | 2,026 | 2,369 | ||||||||||||
Total | $ | 14,801 | $ | 15,719 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||||||||||||
Non-interest revenues | Non-interest revenues | $ | 677 | $ | 680 | $ | 1,066 | $ | 1,242 | Non-interest revenues | $ | 1,005 | $ | 541 |
(Unaudited) |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Customer and other receivables | Customer and other receivables | $ | 3,425 | $ | 3,200 | Customer and other receivables | $ | 3,445 | $ | 3,591 |
March 2022 Form 10-Q | 62 |
Notes to Consolidated Financial Statements (Unaudited) |
$ in millions | $ in millions | At June 30, 2021 | At December 31, 2020 | $ in millions | At March 31, 2022 | At December 31, 2021 | ||||||||||
Institutional Securities | Institutional Securities | $ | 782,257 | $ | 753,322 | Institutional Securities | $ | 826,242 | $ | 792,135 | ||||||
Wealth Management | Wealth Management | 361,136 | 355,595 | Wealth Management | 378,501 | 378,438 | ||||||||||
Investment Management | Investment Management | 18,412 | 6,945 | Investment Management | 17,490 | 17,567 | ||||||||||
Total1 | Total1 | $ | 1,161,805 | $ | 1,115,862 | Total1 | $ | 1,222,233 | $ | 1,188,140 |
63 |
Three Months Ended June 30, | ||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||
$ in millions | Average Daily Balance | Interest | Annualized Average Rate | Average Daily Balance | Interest | Annualized Average Rate | ||||||||||||||
Interest earning assets | ||||||||||||||||||||
Investment securities1 | $ | 181,482 | $ | 608 | 1.3 | % | $ | 123,713 | $ | 629 | 2.0 | % | ||||||||
Loans1 | 161,767 | 1,040 | 2.6 | % | 147,326 | 1,050 | 2.9 | % | ||||||||||||
Securities purchased under agreements to resell and Securities borrowed2: | ||||||||||||||||||||
U.S. | 152,770 | (200) | (0.5) | % | 141,722 | (85) | (0.2) | % | ||||||||||||
Non-U.S. | 73,218 | (121) | (0.7) | % | 61,283 | (56) | (0.4) | % | ||||||||||||
Trading assets, net of Trading liabilities3: | ||||||||||||||||||||
U.S. | 77,814 | 409 | 2.1 | % | 70,641 | 489 | 2.8 | % | ||||||||||||
Non-U.S. | 17,897 | 77 | 1.7 | % | 24,757 | 127 | 2.1 | % | ||||||||||||
Customer receivables and Other4: | ||||||||||||||||||||
U.S. | 130,618 | 340 | 1.0 | % | 87,620 | 166 | 0.8 | % | ||||||||||||
Non-U.S. | 76,329 | 59 | 0.3 | % | 62,126 | 38 | 0.2 | % | ||||||||||||
Total | $ | 871,895 | $ | 2,212 | 1.0 | % | $ | 719,188 | $ | 2,358 | 1.3 | % | ||||||||
Interest bearing liabilities | ||||||||||||||||||||
Deposits1 | $ | 321,138 | $ | 108 | 0.1 | % | $ | 235,370 | $ | 220 | 0.4 | % | ||||||||
Borrowings1, 5 | 221,911 | 719 | 1.3 | % | 202,280 | 823 | 1.6 | % | ||||||||||||
Securities sold under agreements to repurchase and Securities loaned6: | ||||||||||||||||||||
U.S. | 37,849 | 33 | 0.3 | % | 28,840 | 92 | 1.3 | % | ||||||||||||
Non-U.S. | 29,719 | 83 | 1.1 | % | 30,446 | 117 | 1.5 | % | ||||||||||||
Customer payables and Other7: | ||||||||||||||||||||
U.S. | 129,695 | (481) | (1.5) | % | 121,977 | (403) | (1.3) | % | ||||||||||||
Non-U.S. | 75,829 | (115) | (0.6) | % | 63,778 | (91) | (0.6) | % | ||||||||||||
Total | $ | 816,141 | $ | 347 | 0.2 | % | $ | 682,691 | $ | 758 | 0.4 | % | ||||||||
Net interest income and net interest rate spread | $ | 1,865 | 0.8 | % | $ | 1,600 | 0.9 | % |
Six Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Average Daily Balance | Interest | Annualized Average Rate | Average Daily Balance | Interest | Annualized Average Rate | $ in millions | Average Daily Balance | Interest | Annualized Average Rate | Average Daily Balance | Interest | Annualized Average Rate | ||||||||||||||||||||||||||
Interest earning assets | Interest earning assets | Interest earning assets | ||||||||||||||||||||||||||||||||||||||
Investment securities1 | Investment securities1 | $ | 184,377 | $ | 1,457 | 1.6 | % | $ | 116,995 | $ | 1,074 | 1.8 | % | Investment securities1 | $ | 177,572 | $ | 777 | 1.8 | % | $ | 187,294 | $ | 849 | 1.8 | % | ||||||||||||||
Loans1 | Loans1 | 156,729 | 2,028 | 2.6 | % | 140,884 | 2,204 | 3.1 | % | Loans1 | 191,551 | 1,156 | 2.4 | % | 151,636 | 988 | 2.6 | % | ||||||||||||||||||||||
Securities purchased under agreements to resell and Securities borrowed2: | ||||||||||||||||||||||||||||||||||||||||
Securities purchased under agreements to resell2,3: | Securities purchased under agreements to resell2,3: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 149,440 | (369) | (0.5) | % | 131,357 | 293 | 0.4 | % | U.S. | 52,389 | 36 | 0.3 | % | 61,935 | 27 | 0.2 | % | ||||||||||||||||||||||
Non-U.S. | Non-U.S. | 70,897 | (248) | (0.7) | % | 59,131 | (36) | (0.1) | % | Non-U.S. | 64,150 | (23) | (0.1) | % | 52,239 | (82) | (0.6) | % | ||||||||||||||||||||||
Trading assets, net of Trading liabilities3: | ||||||||||||||||||||||||||||||||||||||||
Securities borrowed2,4: | Securities borrowed2,4: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 75,563 | 819 | 2.2 | % | 74,663 | 1,115 | 3.0 | % | U.S. | 122,203 | (176) | (0.6) | % | 85,341 | (196) | (0.9) | % | ||||||||||||||||||||||
Non-U.S. | Non-U.S. | 17,518 | 177 | 2.0 | % | 23,905 | 250 | 2.1 | % | Non-U.S. | 21,229 | (41) | (0.8) | % | 15,095 | (45) | (1.2) | % | ||||||||||||||||||||||
Customer receivables and Other4: | ||||||||||||||||||||||||||||||||||||||||
Trading assets, net of Trading liabilities5: | Trading assets, net of Trading liabilities5: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 79,509 | 430 | 2.2 | % | 72,416 | 410 | 2.3 | % | |||||||||||||||||||||||||||||||
Non-U.S. | Non-U.S. | 16,606 | 94 | 2.3 | % | 17,946 | 100 | 2.3 | % | |||||||||||||||||||||||||||||||
Customer receivables and Other6: | Customer receivables and Other6: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 134,298 | 677 | 1.0 | % | 77,694 | 721 | 1.9 | % | U.S. | 129,162 | 355 | 1.1 | % | 137,859 | 337 | 1.0 | % | ||||||||||||||||||||||
Non-U.S. | Non-U.S. | 75,249 | 108 | 0.3 | % | 61,078 | 240 | 0.8 | % | Non-U.S. | 76,545 | 42 | 0.2 | % | 75,177 | 49 | 0.3 | % | ||||||||||||||||||||||
Total | Total | $ | 864,071 | $ | 4,649 | 1.1 | % | $ | 685,707 | $ | 5,861 | 1.7 | % | Total | $ | 930,916 | $ | 2,650 | 1.2 | % | $ | 856,938 | $ | 2,437 | 1.2 | % | ||||||||||||||
Interest bearing liabilities | Interest bearing liabilities | Interest bearing liabilities | ||||||||||||||||||||||||||||||||||||||
Deposits1 | Deposits1 | $ | 320,688 | $ | 228 | 0.1 | % | $ | 217,472 | $ | 626 | 0.6 | % | Deposits1 | $ | 348,916 | $ | 73 | 0.1 | % | $ | 320,257 | $ | 120 | 0.2 | % | ||||||||||||||
Borrowings1, 5 | 218,816 | 1,433 | 1.3 | % | 197,171 | 1,820 | 1.9 | % | ||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase and Securities loaned6: | ||||||||||||||||||||||||||||||||||||||||
Borrowings1,7 | Borrowings1,7 | 228,942 | 685 | 1.2 | % | 215,688 | 714 | 1.3 | % | |||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase2,8,10: | Securities sold under agreements to repurchase2,8,10: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 35,891 | 77 | 0.4 | % | 29,954 | 420 | 2.8 | % | U.S. | 22,979 | 40 | 0.7 | % | 29,661 | 47 | 0.6 | % | ||||||||||||||||||||||
Non-U.S. | Non-U.S. | 28,486 | 153 | 1.1 | % | 30,261 | 298 | 2.0 | % | Non-U.S. | 36,148 | 9 | 0.1 | % | 23,215 | (10) | (0.2) | % | ||||||||||||||||||||||
Customer payables and Other7: | ||||||||||||||||||||||||||||||||||||||||
Securities loaned2,9,10: | Securities loaned2,9,10: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 5,489 | (1) | (0.1) | % | 4,428 | (3) | (0.3) | % | |||||||||||||||||||||||||||||||
Non-U.S. | Non-U.S. | 7,771 | 94 | 4.9 | % | 3,848 | 80 | 8.4 | % | |||||||||||||||||||||||||||||||
Customer payables and Other11: | Customer payables and Other11: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 130,065 | (918) | (1.4) | % | 125,797 | (294) | (0.5) | % | U.S. | 136,407 | (368) | (1.1) | % | 129,438 | (437) | (1.4) | % | ||||||||||||||||||||||
Non-U.S. | Non-U.S. | 71,608 | (217) | (0.6) | % | 63,375 | 35 | 0.1 | % | Non-U.S. | 74,919 | (98) | (0.5) | % | 68,782 | (102) | (0.6) | % | ||||||||||||||||||||||
Total | Total | $ | 805,554 | $ | 756 | 0.2 | % | $ | 664,030 | $ | 2,905 | 0.9 | % | Total | $ | 861,571 | $ | 434 | 0.2 | % | $ | 795,317 | $ | 409 | 0.2 | % | ||||||||||||||
Net interest income and net interest rate spread | Net interest income and net interest rate spread | $ | 3,893 | 0.9 | % | $ | 2,956 | 0.8 | % | Net interest income and net interest rate spread | $ | 2,216 | 1.0 | % | $ | 2,028 | 1.0 | % |
64 |
Glossary of Common Terms and Acronyms |
Annual report on Form 10-K for year ended December 31, | |||||
ABS | Asset-backed securities | ||||
ACL | Allowance for credit losses | ||||
AFS | Available-for-sale | ||||
AML | Anti-money laundering | ||||
AOCI | Accumulated other comprehensive income (loss) | ||||
AUM | Assets under management or supervision | ||||
Balance | Consolidated balance | ||||
BHC | Bank holding company | ||||
bps | Basis points; one basis point equals 1/100th of 1% | ||||
Cash flow | Consolidated cash flow | ||||
CCAR | Comprehensive Capital Analysis and Review | ||||
CCyB | Countercyclical capital buffer | ||||
CDO | Collateralized debt obligation(s), including Collateralized loan obligation(s) | ||||
CDS | Credit default swaps | ||||
CECL | Current Expected Credit Losses, as calculated under the Financial Instruments—Credit Losses accounting update | ||||
CFTC | U.S. Commodity Futures Trading Commission | ||||
CLN | Credit-linked note(s) | ||||
CLO | Collateralized loan obligation(s) | ||||
CMBS | Commercial mortgage-backed securities | ||||
CMO | Collateralized mortgage obligation(s) | ||||
CRM | Credit Risk Management Department | ||||
DVA | Debt valuation adjustment | ||||
EBITDA | Earnings before interest, taxes, depreciation and amortization | ||||
EMEA | Europe, Middle East and Africa | ||||
EPS | Earnings per common share | ||||
FDIC | Federal Deposit Insurance Corporation | ||||
FFELP | Federal Family Education Loan Program | ||||
FHC | Financial | ||||
FICO | Fair Isaac Corporation | ||||
Financial statements | Consolidated financial statements | ||||
FVO | Fair value option | ||||
G-SIB | Global systemically important banks | ||||
HFI | Held-for-investment | ||||
HFS | Held-for-sale | ||||
HQLA | High-quality liquid assets | ||||
HTM | Held-to-maturity | ||||
I/E | Intersegment eliminations | ||||
IHC | Intermediate holding company | ||||
IM | Investment Management | ||||
Income | Consolidated income |
IRS | Internal Revenue Service | ||||
IS | Institutional Securities |
LCR | Liquidity coverage ratio, as adopted by the U.S. banking agencies | ||||
LIBOR | London Interbank Offered Rate | ||||
LTV | Loan-to-value | ||||
MSBNA | Morgan Stanley Bank, N.A. | ||||
MS&Co. | Morgan Stanley & Co. LLC | ||||
MSCG | Morgan Stanley Capital Group Inc. | ||||
MSCS | Morgan Stanley Capital Services LLC | ||||
MSESE | Morgan Stanley Europe SE | ||||
MSIP | Morgan Stanley & Co. International plc | ||||
MSMS | Morgan Stanley MUFG Securities Co., Ltd. | ||||
MSPBNA | Morgan Stanley Private Bank, National Association | ||||
MSSB | Morgan Stanley Smith Barney LLC | ||||
MUFG | Mitsubishi UFJ Financial Group, Inc. | ||||
MUMSS | Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. | ||||
MWh | Megawatt hour | ||||
N/A | Not Applicable | ||||
N/M | Not Meaningful | ||||
NAV | Net asset value | ||||
Non-GAAP | Non-generally accepted accounting principles | ||||
NSFR | Net stable funding ratio, as adopted by the U.S. banking agencies | ||||
OCC | Office of the Comptroller of the Currency | ||||
OCI | Other comprehensive income (loss) | ||||
OTC | Over-the-counter | ||||
PSU | Performance-based stock unit | ||||
ROE | Return on average common equity | ||||
ROTCE | Return on average tangible common equity | ||||
ROU | Right-of-use | ||||
RSU | Restricted stock unit | ||||
RWA | Risk-weighted assets | ||||
SCB | Stress capital buffer | ||||
SEC | U.S. Securities and Exchange Commission | ||||
SLR | Supplementary leverage ratio | ||||
SOFR | Secured Overnight Financing Rate | ||||
S&P | Standard & Poor’s | ||||
SPE | Special purpose entity | ||||
SPOE | Single point of entry | ||||
TDR | Troubled debt restructuring | ||||
TLAC | Total loss-absorbing capacity | ||||
U.K. | United Kingdom | ||||
UPB | Unpaid principal balance | ||||
U.S. | United States of America | ||||
U.S. GAAP | Accounting principles generally accepted in the United States of America | ||||
VaR | Value-at-Risk | ||||
VIE | Variable interest entity | ||||
WACC | Implied weighted average cost of capital | ||||
WM | Wealth Management |
65 |
$ in millions, except per share data | Total Number of Shares Purchased1 | Average Price Paid per Share | Total Shares Purchased as Part of Share Repurchase Program2,3 | Dollar Value of Remaining Authorized Repurchase | ||||||||||
April | 9,005,938 | $ | 79.84 | 8,095,000 | $ | 7,219 | ||||||||
May | 14,426,207 | $ | 85.91 | 14,386,200 | $ | 5,983 | ||||||||
June | 11,627,627 | $ | 91.07 | 11,606,923 | $ | 4,926 | ||||||||
Total | 35,059,772 | $ | 86.06 | 34,088,123 |
$ in millions, except per share data | Total Number of Shares Purchased1 | Average Price Paid per Share | Total Shares Purchased as Part of Share Repurchase Program2,3 | Dollar Value of Remaining Authorized Repurchase | ||||||||||
January | 11,020,364 | $ | 96.80 | 3,796,900 | $ | 5,235 | ||||||||
February | 14,022,622 | $ | 100.23 | 12,855,200 | $ | 3,940 | ||||||||
March | 13,586,163 | $ | 88.94 | 13,514,500 | $ | 2,738 | ||||||||
Three Months Ended March 31, 2022 | 38,629,149 | $ | 95.28 | 30,166,600 |
March 2022 Form 10-Q | 66 |
Exhibit No. | Description | ||||
15 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101 | Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline eXtensible Business Reporting Language (“Inline XBRL”). | ||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). |
MORGAN STANLEY (Registrant) | |||||
By: | /s/ SHARON YESHAYA | ||||
Sharon Yeshaya Executive Vice President and Chief Financial Officer | |||||
By: | /s/ RAJA J. AKRAM | ||||
Raja J. Akram Deputy Chief Financial Officer, Chief Accounting Officer and Controller |
67 |