Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2018shares | |
Documentand Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | BK |
Entity Registrant Name | Bank of New York Mellon CORP |
Entity Central Index Key | 1,390,777 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding (shares) | 1,010,676,179 |
Consolidated Income Statement (
Consolidated Income Statement (unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | ||
Investment services fees: | ||||
Asset servicing | $ 1,168 | $ 1,130 | $ 1,063 | |
Clearing services | 414 | 400 | 376 | |
Issuer services | 260 | 197 | 251 | |
Treasury services | 138 | 137 | 139 | |
Total investment services fees | 1,980 | 1,864 | 1,829 | |
Investment management and performance fees | 960 | 962 | 842 | |
Foreign exchange and other trading revenue | 209 | 166 | 164 | |
Financing-related fees | 52 | 54 | 55 | |
Distribution and servicing | 36 | 38 | 41 | |
Investment and other income (loss) | 82 | (198) | 77 | |
Total fee revenue | 3,319 | 2,886 | 3,008 | |
Net securities (losses) gains — including other-than-temporary impairment | (49) | (22) | 10 | |
Noncredit-related portion of other-than-temporary impairment (recognized in other comprehensive income) | 0 | 4 | 0 | |
Net securities (losses) gains | (49) | (26) | 10 | |
Total fee and other revenue | 3,270 | 2,860 | 3,018 | |
Operations of consolidated investment management funds | ||||
Investment (loss) income | (11) | 17 | 37 | |
Interest of investment management fund note holders | 0 | 0 | 4 | |
(Loss) income from consolidated investment management funds | (11) | 17 | 33 | |
Net interest revenue | ||||
Interest revenue | 1,381 | 1,219 | 960 | |
Interest expense | 462 | 368 | 168 | |
Net interest revenue | 919 | 851 | 792 | |
Total revenue | 4,178 | 3,728 | 3,843 | |
Provision for credit losses | (5) | (6) | (5) | |
Noninterest expense | ||||
Staff | [1] | 1,576 | 1,628 | 1,488 |
Professional, legal and other purchased services | 291 | 339 | 313 | |
Software | 173 | 230 | 166 | |
Net occupancy | 139 | 153 | 136 | |
Sub-custodian and clearing | [2] | 119 | 102 | 103 |
Distribution and servicing | 106 | 106 | 100 | |
Furniture and equipment | 61 | 67 | 57 | |
Bank assessment charges | 52 | 53 | 57 | |
Business development | 51 | 66 | 51 | |
Amortization of intangible assets | 49 | 52 | 52 | |
Other | [1],[2],[3] | 122 | 210 | 119 |
Total noninterest expense | 2,739 | 3,006 | 2,642 | |
Income | ||||
Income before income taxes | 1,444 | 728 | 1,206 | |
Provision (benefit) for income taxes | 282 | (453) | 269 | |
Net income | 1,162 | 1,181 | 937 | |
Net loss (income) attributable to noncontrolling interests (includes $11, $(9) and $(18) related to consolidated investment management funds, respectively) | 9 | (6) | (15) | |
Net income applicable to shareholders of The Bank of New York Mellon Corporation | 1,171 | 1,175 | 922 | |
Preferred stock dividends | (36) | (49) | (42) | |
Net income applicable to common shareholders of The Bank of New York Mellon Corporation | 1,135 | 1,126 | 880 | |
Net income applicable to common shareholders of The Bank of New York Mellon Corporation used for the earnings per share calculation | ||||
Net income applicable to common shareholders of The Bank of New York Mellon Corporation | 1,135 | 1,126 | 880 | |
Less: Earnings allocated to participating securities | 8 | 8 | 14 | |
Net income applicable to common shareholders of The Bank of New York Mellon Corporation after required adjustment for the calculation of basic and diluted earnings per common share | $ 1,127 | $ 1,118 | $ 866 | |
Average common shares and equivalents outstanding of The Bank of New York Mellon Corporation | ||||
Basic (shares) | 1,016,797 | 1,024,828 | 1,041,158 | |
Common stock equivalents (shares) | 8,188 | 9,473 | 17,886 | |
Less: Participating securities (shares) | (3,254) | (3,897) | (11,298) | |
Diluted (shares) | 1,021,731 | 1,030,404 | 1,047,746 | |
Anti-dilutive securities (shares) | [4] | 7,248 | 7,784 | 17,359 |
Earnings per share applicable to the common shareholders of The Bank of New York Mellon Corporation | ||||
Basic (usd per share) | [5] | $ 1.11 | $ 1.09 | $ 0.83 |
Diluted (usd per share) | [5] | $ 1.10 | $ 1.08 | $ 0.83 |
[1] | In the first quarter of 2018, we adopted new accounting guidance included in ASU 2017-07, Compensation-Retirement Benefits - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which required the reclassification of the components of pension and other post-retirement costs, other than the service cost component. As a result, staff expense increased and other expense decreased. Prior periods have been reclassified. See Note 2 of the Notes to Consolidated Financial Statements for additional information. | |||
[2] | Beginning in the first quarter of 2018, clearing expense, which was previously included in other expense, was included with sub-custodian expense. Prior periods have been reclassified. | |||
[3] | Beginning in the first quarter of 2018, M&I, litigation and restructuring charges are no longer separately disclosed. Expenses previously reported in this line have been reclassified to existing expense categories, primarily other expense. | |||
[4] | Represents stock options, restricted stock, restricted stock units and participating securities outstanding but not included in the computation of diluted average common shares because their effect would be anti-dilutive. | |||
[5] | Basic and diluted earnings per share under the two-class method are determined on the net income applicable to common shareholders of The Bank of New York Mellon Corporation reported on the income statement less earnings allocated to participating securities. |
Consolidated Income Statement
Consolidated Income Statement (unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Net loss (income) attributable to noncontrolling interests | $ 9 | $ (6) | $ (15) |
Basic (shares) | 1,016,797 | 1,024,828 | 1,041,158 |
Diluted (shares) | 1,021,731 | 1,030,404 | 1,047,746 |
Less: Earnings allocated to participating securities | $ 8 | $ 8 | $ 14 |
Investment Management | |||
Net loss (income) attributable to noncontrolling interests | $ 11 | $ (9) | $ (18) |
Consolidated Comprehensive Inco
Consolidated Comprehensive Income Statement (unaudited) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,162 | $ 1,181 | $ 937 | |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | 244 | 112 | 125 | |
Unrealized (loss) gain on assets available-for-sale: | ||||
Unrealized (loss) gain arising during the period | (275) | (60) | 94 | |
Reclassification adjustment | 37 | 16 | (6) | |
Total unrealized (loss) gain on assets available-for-sale | (238) | (44) | 88 | |
Defined benefit plans: | ||||
Net gain arising during the period | 0 | 340 | 2 | |
Foreign exchange adjustment | 0 | 1 | 0 | |
Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost | 17 | 19 | 18 | |
Total defined benefit plans | 17 | 360 | 20 | |
Net unrealized (loss) gain on cash flow hedges | (2) | (2) | 10 | |
Total other comprehensive income (loss), net of tax | [1] | 21 | 426 | 243 |
Total comprehensive income | 1,183 | 1,607 | 1,180 | |
Net loss (income) attributable to noncontrolling interests | 9 | (6) | (15) | |
Other comprehensive (income) attributable to noncontrolling interests | (5) | (2) | (2) | |
Comprehensive income applicable to shareholders of The Bank of New York Mellon Corporation | $ 1,187 | $ 1,599 | $ 1,163 | |
[1] | Other comprehensive income (loss) attributable to The Bank of New York Mellon Corporation shareholders was $16 million for the quarter ended March 31, 2018, $424 million for the quarter ended Dec. 31, 2017 and $241 million for the quarter ended March 31, 2017. |
Consolidated Comprehensive Inc5
Consolidated Comprehensive Income Statement (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Other comprehensive income | $ 16 | $ 424 | $ 241 |
Consolidated Balance Sheet (una
Consolidated Balance Sheet (unaudited) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Securities: | |||
Held-to-maturity (fair value of $36,135 and $40,512) | $ 36,959 | ||
Loans | 60,809 | $ 61,540 | |
Allowance for loan losses | (156) | (159) | |
Goodwill | 17,596 | 17,564 | |
Intangible assets | 3,370 | 3,411 | |
Other assets (includes $561 and $791, at fair value) | 21,638 | 23,029 | |
Total assets | 373,597 | 371,758 | |
Deposits: | |||
Accrued taxes and other expenses | 6,225 | ||
Other liabilities (including allowance for lending-related commitments of $100 and $102, also includes $379 and $800, at fair value) | 6,050 | ||
Total liabilities | 331,473 | 330,012 | |
Temporary equity | |||
Redeemable noncontrolling interests | 184 | 179 | |
Permanent equity | |||
Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 35,826 and 35,826 shares | 3,542 | 3,542 | |
Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,362,857,226 and 1,354,163,581 shares | 14 | 14 | |
Additional paid-in capital | 26,911 | 26,665 | |
Retained earnings | 26,496 | 25,635 | |
Accumulated other comprehensive loss, net of tax | (2,343) | (2,357) | |
Less: Treasury stock of 352,181,047 and 340,721,136 common shares, at cost | (12,892) | (12,248) | |
Total The Bank of New York Mellon Corporation shareholders’ equity | 41,728 | 41,251 | |
Nonredeemable noncontrolling interests of consolidated investment management funds | 212 | 316 | |
Total permanent equity | [1] | 41,940 | 41,567 |
Total liabilities, temporary equity and permanent equity | 373,597 | 371,758 | |
Investment Management funds | |||
Securities: | |||
Trading assets | 353 | 516 | |
Assets of consolidated investment management funds, at fair value | 606 | 731 | |
Deposits: | |||
Liabilities of consolidated investment management funds, at fair value | 11 | 2 | |
Operating segments | |||
Cash and due from: | |||
Banks | 4,636 | 5,382 | |
Interest-bearing deposits with the Federal Reserve and other central banks | 91,431 | 91,510 | |
Interest-bearing deposits with banks ($1,236 and $1,751 is restricted) | 15,186 | 11,979 | |
Federal funds sold and securities purchased under resale agreements | 28,784 | 28,135 | |
Securities: | |||
Held-to-maturity (fair value of $36,135 and $40,512) | 36,959 | 40,827 | |
Available-for-sale | 81,830 | 79,543 | |
Total securities | 118,789 | 120,370 | |
Trading assets | 8,596 | 6,022 | |
Loans | 60,809 | 61,540 | |
Allowance for loan losses | (156) | (159) | |
Net loans | 60,653 | 61,381 | |
Premises and equipment | 1,702 | 1,634 | |
Accrued interest receivable | 610 | 610 | |
Goodwill | 17,596 | 17,564 | |
Intangible assets | 3,370 | 3,411 | |
Other assets (includes $561 and $791, at fair value) | 21,638 | 23,029 | |
Total assets | 372,991 | 371,027 | |
Deposits: | |||
Noninterest-bearing (principally U.S. offices) | 76,880 | 82,716 | |
Interest-bearing deposits in U.S. offices | 58,269 | 52,294 | |
Interest-bearing deposits in non-U.S. offices | 106,695 | 109,312 | |
Total deposits | 241,844 | 244,322 | |
Federal funds purchased and securities sold under repurchase agreements | 21,600 | 15,163 | |
Trading liabilities | 3,365 | 3,984 | |
Payables to customers and broker-dealers | 20,172 | 20,184 | |
Commercial paper | 3,936 | 3,075 | |
Other borrowed funds | 1,550 | 3,028 | |
Accrued taxes and other expenses | 5,349 | 6,225 | |
Other liabilities (including allowance for lending-related commitments of $100 and $102, also includes $379 and $800, at fair value) | 5,707 | 6,050 | |
Long-term debt (includes $363 and $367, at fair value) | 27,939 | 27,979 | |
Total liabilities | 331,462 | 330,010 | |
Operating segments | Investment Management funds | |||
Securities: | |||
Assets of consolidated investment management funds, at fair value | 606 | 731 | |
Deposits: | |||
Liabilities of consolidated investment management funds, at fair value | $ 11 | $ 2 | |
[1] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,709 million at Dec. 31, 2017 and $38,186 million at March 31, 2018. |
Consolidated Balance Sheet (un
Consolidated Balance Sheet (unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Restricted cash | $ 1,236 | $ 1,751 |
Other liabilities, allowance for lending related commitments | 100 | 102 |
Long-term debt, fair value | $ 363 | $ 367 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock, issued (shares) | 35,826 | 35,826 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (shares) | 3,500,000,000 | 3,500,000,000 |
Common stock, issued (shares) | 1,362,857,226 | 1,354,163,581 |
Treasury stock, common shares (shares) | 352,181,047 | 340,721,136 |
Operating segments | ||
Held-to-maturity, fair value | $ 36,135 | $ 40,512 |
Other assets, fair value | 561 | 791 |
Other liabilities, allowance for lending related commitments | 100 | 102 |
Other liabilities, fair value | 379 | 800 |
Long-term debt, fair value | $ 363 | $ 367 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Operating activities | ||||||
Net income | $ 1,162 | $ 1,181 | $ 937 | |||
Net loss (income) attributable to noncontrolling interests | 9 | (6) | (15) | |||
Net income applicable to shareholders of The Bank of New York Mellon Corporation | 1,171 | 1,175 | 922 | |||
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | ||||||
Provision for credit losses | (5) | (6) | (5) | |||
Pension plan contributions | (3) | (5) | ||||
Depreciation and amortization | 335 | 347 | ||||
Deferred tax expense | 16 | 130 | ||||
Net securities losses (gains) | 49 | 26 | (10) | |||
Change in trading assets and liabilities | (2,214) | (751) | ||||
Change in accruals and other, net | (201) | (1,852) | ||||
Net cash provided by operating activities | (852) | (1,224) | ||||
Investing activities | ||||||
Change in interest-bearing deposits with banks | (3,700) | 261 | ||||
Change in interest-bearing deposits with the Federal Reserve and other central banks | 1,489 | (6,569) | ||||
Purchases of securities held-to-maturity | (1,688) | (2,896) | ||||
Paydowns of securities held-to-maturity | 1,011 | 1,067 | ||||
Maturities of securities held-to-maturity | 3,468 | 2,469 | ||||
Purchases of securities available-for-sale | (8,757) | (5,510) | ||||
Sales of securities available-for-sale | 4,050 | 924 | ||||
Paydowns of securities available-for-sale | 1,735 | 2,023 | ||||
Maturities of securities available-for-sale | 1,436 | 1,462 | ||||
Net change in loans | 752 | 3,618 | ||||
Sales of loans and other real estate | 1 | 72 | ||||
Change in federal funds sold and securities purchased under resale agreements | (649) | 26 | ||||
Net change in seed capital investments | 12 | 72 | ||||
Purchases of premises and equipment/capitalized software | (173) | (286) | ||||
Dispositions, net of cash | 84 | 0 | ||||
Other, net | (501) | 490 | ||||
Net cash (used for) provided by investing activities | (1,430) | (2,777) | ||||
Financing activities | ||||||
Change in deposits | (4,283) | (1,201) | ||||
Change in federal funds purchased and securities sold under repurchase agreements | 6,437 | 1,160 | ||||
Change in payables to customers and broker-dealers | (12) | 311 | ||||
Change in other borrowed funds | (1,524) | 233 | ||||
Change in commercial paper | 861 | 2,543 | ||||
Net proceeds from the issuance of long-term debt | 1,745 | 2,243 | ||||
Repayments of long-term debt | (1,400) | (296) | ||||
Proceeds from the exercise of stock options | 56 | 145 | ||||
Issuance of common stock | 12 | 7 | ||||
Treasury stock acquired | (644) | (879) | ||||
Common cash dividends paid | (246) | (201) | ||||
Preferred cash dividends paid | (36) | (42) | ||||
Other, net | 5 | 9 | ||||
Net cash provided by financing activities | 971 | 4,032 | ||||
Effect of exchange rate changes on cash | 50 | 36 | ||||
Change in cash and due from banks and restricted cash | ||||||
Change in cash and due from banks and restricted cash | [1] | (1,261) | 67 | |||
Cash and due from banks and restricted cash at beginning of period | [1] | 7,133 | 8,204 | |||
Cash and due from banks and restricted cash at end of period | [1] | 5,872 | 7,133 | 8,271 | ||
Cash and due from banks at end of period (unrestricted cash) | [1] | $ 4,636 | $ 5,366 | |||
Restricted cash at end of period | [1] | 1,236 | 2,905 | |||
Cash and due from banks and restricted cash at end of period | [1] | 7,133 | $ 7,133 | 8,204 | $ 5,872 | $ 8,271 |
Supplemental disclosures | ||||||
Interest paid | 483 | 211 | ||||
Income taxes paid | 114 | 100 | ||||
Income taxes refunded | $ 56 | $ 1 | ||||
[1] | Reflects the impact of adopting new accounting guidance included in ASU 2016-15 and ASU 2016-18. Prior periods have been restated. See Note 2 for additional information. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity (unaudited) - USD ($) $ in Millions | Total | Preferred stock | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive (loss) income, net of tax | Treasury stock | Non- redeemable noncontrolling interests of consolidated investment management funds | Redeemable non- controlling interests/ temporary equity | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Adjustment for the cumulative affect of applying the ASU | ASU 2014-09 | $ (55) | $ (55) | ||||||||
Adjustment for the cumulative affect of applying the ASU | ASU 2017-12 | 25 | 27 | $ (2) | |||||||
Adjusted balance | 41,537 | $ 3,542 | $ 14 | $ 26,665 | 25,607 | (2,359) | $ (12,248) | $ 316 | $ 179 | |
Common stock issued under: | ||||||||||
The Bank of New York Mellon Corporation shareholders’ equity | 41,251 | 37,709 | ||||||||
Beginning Balance at Dec. 31, 2017 | 41,567 | [1] | 3,542 | 14 | 26,665 | 25,635 | (2,357) | (12,248) | 316 | 179 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares issued to shareholders of noncontrolling interests | 17 | |||||||||
Redemption of subsidiary shares from noncontrolling interests | (32) | |||||||||
Other net changes in noncontrolling interests | (104) | (11) | (93) | 13 | ||||||
Net income (loss) | 1,160 | 1,171 | (11) | 2 | ||||||
Other comprehensive income | 16 | 16 | 5 | |||||||
Other Comprehensive Income Loss Net Of Tax Including Portion Attributable To Noncontrolling Interest | 16 | |||||||||
Dividends: | ||||||||||
Common stock at $0.24 per share | (246) | (246) | ||||||||
Preferred stock | (36) | (36) | ||||||||
Repurchase of common stock | (644) | (644) | ||||||||
Common stock issued under: | ||||||||||
Employee benefit plans | 10 | 10 | ||||||||
Direct stock purchase and dividend reinvestment plan | 9 | 9 | ||||||||
Stock awards and options exercised | 238 | 0 | 238 | |||||||
Ending Balance at Mar. 31, 2018 | 41,940 | [1] | $ 3,542 | 14 | $ 26,911 | $ 26,496 | $ (2,343) | $ (12,892) | $ 212 | $ 184 |
Common stock issued under: | ||||||||||
The Bank of New York Mellon Corporation shareholders’ equity | $ 41,728 | $ 38,186 | ||||||||
[1] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,709 million at Dec. 31, 2017 and $38,186 million at March 31, 2018. |
Consolidated Statement of Cha10
Consolidated Statement of Changes in Equity (unaudited) (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)$ / shares | |
The Bank of New York Mellon Corporation shareholders’ equity | $ 41,728 |
Dividends on common stock, cash paid (dollars per share) | $ / shares | $ 0.24 |
Common stock | |
The Bank of New York Mellon Corporation shareholders’ equity | $ 38,186 |
Basis of presentation
Basis of presentation | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accounting and financial reporting policies of BNY Mellon, a global financial services company, conform to U.S. generally accepted accounting principles (“GAAP”) and prevailing industry practices. The accompanying consolidated financial statements are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the periods presented have been made. These financial statements should be read in conjunction with BNY Mellon’s Annual Report on Form 10-K for the year ended Dec. 31, 2017 . Certain immaterial reclassifications have been made to prior periods to place them on a basis comparable with current period presentation. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates based upon assumptions about future economic and market conditions which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial condition. Amounts subject to estimates are items such as allowance for loan losses and lending-related commitments, fair value of financial instruments and derivatives, other-than-temporary impairment, goodwill and other intangibles and pension accounting. Among other effects, such changes in estimates could result in future impairments of investment securities, goodwill and intangible assets and establishment of allowances for loan losses and lending-related commitments as well as changes in pension and post-retirement expense. |
Accounting changes and new acco
Accounting changes and new accounting guidance | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting changes and new accounting guidance | Accounting changes and new accounting guidance The following accounting changes and new accounting guidance were adopted in the first quarter of 2018. ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued an ASU, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities . The objective of this ASU is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities and to simplify the application of hedge accounting guidance. The most significant impact of the new guidance to the Company relates to the new accounting alternatives for fair value hedges of interest rate risk, specifically, the ability to hedge only the benchmark component of the contractual cash flows and partial-term hedging. The guidance also changed presentation and disclosure requirements and made changes to how the shortcut method is applied, which may result in the Company using that method going forward for certain hedging relationships. BNY Mellon elected to early adopt this ASU on Jan. 31, 2018, which is the “as of” date for which the Company was permitted to make certain elections and the measurement date for recording the adoption impact for certain hedge modifications. As part of the adoption, we elected to reclassify approximately $1.1 billion of debt securities from held-to-maturity to available-for-sale which resulted in a decrease of $47 million pre-tax to accumulated other comprehensive income. The Company also elected to modify certain hedge relationships as of the adoption date primarily to utilize the benchmark component method of measuring hedge effectiveness, as such method is deemed to more closely match risk management objectives with accounting results. The Company recognized a $27 million after-tax increase in retained earnings as of Jan. 1, 2018 associated with the adoption impact of these hedge modifications. ASU 2017-07, Compensation-Retirement Benefits - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued an ASU, Compensation-Retirement Benefits - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The ASU requires the disaggregation of the service cost component from the other components of the net benefit cost in the income statement. The ASU also permits only the service cost component of net benefit cost to be eligible for capitalization. BNY Mellon adopted this ASU in the first quarter of 2018, and applied the guidance retrospectively for the presentation of the service cost component and the other components in the income statement, and prospectively for the capitalization of the service cost component in assets. The adoption of this standard increased staff expense and decreased other expense by $14 million for the fourth quarter of 2017 and $16 million for the first quarter of 2017. ASU 2016-18, Statement of Cash Flows – Restricted Cash In November 2016, the FASB issued an ASU, Statement of Cash Flows – Restricted Cash . This ASU provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. Restricted cash consists of excess client funds held by our broker-dealer business and totaled $1.2 billion at March 31, 2018 and $2.9 billion at March 31, 2017. Restricted cash is included in interest-bearing deposits with banks on the consolidated balance sheet and with cash and due from banks when reconciling the beginning and end-of-period balances on the consolidated cash flow statement. We adopted the guidance in this ASU retrospectively. As a result, the change in interest-bearing deposits with banks, which is included in investing activities on the consolidated statement of cash flows, was restated to reflect the decrease in restricted cash of $477 million for the three months ended March 31, 2017. The change in restricted cash was a $515 million decrease for the three months ended March 31, 2018. ASU 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued an ASU, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments . This ASU provides guidance on eight specific cash flow presentation issues. The most significant impact for BNY Mellon relates to distributions received from equity method investees. For equity method investments, BNY Mellon elected to report distributions received from equity method investees using the cumulative earnings approach. Distributions received are considered returns on investment and classified as cash inflows from operating activities on the consolidated cash flows statement. To the extent the returns on investment exceeded the cumulative equity in earnings recognized; the excess would be considered a return of investment and classified as cash inflows from investing activities on the consolidated cash flows statement. We adopted the guidance in this ASU retrospectively. As a result, the change in accruals and other, net which is included in operating activities on the consolidated cash flows statement, was restated to reflect distributions received of $9 million for the three months ended March 31, 2017. These distributions were previously included in other, net in investing activities on the consolidated cash flows statement. Distributions received for the three months ended March 31, 2018 were $9 million . The remaining seven specific cash flow presentation issues do not materially impact BNY Mellon. ASU 2014-09, Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . This ASU, as amended, provides guidance on the recognition of revenue related to the transfer of promised goods or services to customers and guidance on accounting for certain contract costs. The standard provides a single revenue model to be applied by reporting companies under U.S. GAAP and supersedes most existing revenue recognition guidance. The Company adopted the guidance on Jan. 1, 2018 using the cumulative effect transition method applied to contracts not completed as of Dec. 31, 2017, which resulted in a $55 million after-tax reduction to retained earnings. The comparative financial information for 2017 has not been restated and continues to be reported under the accounting standards in effect for that period. Although the impact of the adoption of this ASU was not material, the most significant changes and quantitative impact of the changes are disclosed below. Payments to customers The timing of recognizing the reduction in revenue for certain payments made to depositary receipts customers has changed. Prior to adoption, annual payments to customers were capitalized and amortized as contra revenue over the remaining contract period, subject to impairment reviews. Under the new guidance, annual payments are recorded as a reduction in revenue in proportion to the expected annual revenue generated from the related customer contract. Costs to obtain a customer contract Prior to adoption, costs to obtain a customer contract, primarily sales incentives, were expensed as incurred. Under the new guidance, an asset is recognized for the incremental sales incentives that are considered costs of obtaining a contract with a customer, if those costs are expected to be recovered. The table below presents the cumulative effect of the adoption of the new guidance on the consolidated balance sheet as of Dec. 31, 2017 . Impact to the consolidated balance sheet Dec. 31, 2017 Impact of adoption Jan. 1, 2018 (in millions) Assets Other assets $ 23,029 $ (9 ) $ 23,020 Liabilities Accrued tax and other expenses $ 6,225 $ (18 ) $ 6,207 Other liabilities 6,050 64 6,114 Equity Retained earnings $ 25,635 $ (55 ) $ 25,580 The impact of the new guidance on the consolidated income statement for the first quarter of 2018 and consolidated balance sheet as of March 31, 2018 was de minimis. See Note 8 for additional revenue and contract costs disclosures. ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities . The ASU requires investments in equity securities that do not result in consolidation and are not accounted for under the equity method to be measured at fair value with changes in the fair value recognized through net income, unless one of two available exceptions apply. The first exception, a scope exception, allows Federal Reserve Bank stock, FHLB stock and exchange memberships to remain accounted for at cost, less impairment. The second practicability exception is an election available for equity investments that do not have readily determinable fair values. For certain investments where the Company has chosen the practicability exception, such investments are accounted for at cost adjusted for impairment, if any, plus or minus observable price changes. The Company adopted this guidance in the first quarter of 2018 using the cumulative effect method of adoption, with a de minimis impact to retained earnings. As part of the adoption, we reclassified money market fund investments of approximately $1 billion to trading assets, primarily from available-for-sale securities. As of March 31, 2018, we have $47 million of non-readily marketable equity securities, where we are utilizing the practicability exception, and carrying such investments at cost, plus or minus observed changes in fair value. The upward adjustments recognized on these equity securities were $20 million in the first quarter of 2018 resulting from activity that resulted in observable price changes. We also have equity securities carried at fair value at March 31, 2018. The net gain recognized in the first quarter of 2018 was $2 million , comprised of $9 million of realized gains on equity securities sold in the first quarter of 2018 and $7 million on unrealized losses recognized on equity securities held at March 31, 2018. |
Acquisitions and dispositions
Acquisitions and dispositions | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and dispositions | Acquisitions and dispositions We sometimes structure our acquisitions with both an initial payment and later contingent payments tied to post-closing revenue or income growth. There were no contingent payments in the first quarter of 2018 . A t March 31, 2018 , we are potentially obligated to pay additional consideration which, using reasonable assumptions, could range from $0 million to $16 million over the next twelve months , but could be higher as certain of the arrangements do not contain a contractual maximum. The disposition described below did not have a material impact on BNY Mellon’s results of operations. Disposition in 2018 On Jan 2, 2018 , BNY Mellon completed the sale of CenterSquare, one of our Investment Management boutiques, and recorded a small gain on this transaction. CenterSquare had approximately $10 billion in AUM in U.S. and global real estate and infrastructure investments. In addition, goodwill of $52 million was removed from the balance sheet as a result of this sale. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2018 | |
Securities [Abstract] | |
Securities | Securities The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of securities at March 31, 2018 and Dec. 31, 2017 , respectively. Securities at March 31, 2018 Gross unrealized Amortized cost Fair value (in millions) Gains Losses Available-for-sale: U.S. Treasury $ 17,108 $ 120 $ 274 $ 16,954 U.S. government agencies 1,179 — 25 1,154 State and political subdivisions 2,739 22 35 2,726 Agency RMBS 24,351 95 410 24,036 Non-agency RMBS (a) 1,175 303 2 1,476 Other RMBS 149 3 6 146 Commercial MBS 1,391 2 20 1,373 Agency commercial MBS 9,659 14 161 9,512 CLOs 3,121 10 2 3,129 Other asset-backed securities 277 1 — 278 Foreign covered bonds 2,722 15 18 2,719 Corporate bonds 1,236 11 25 1,222 Sovereign debt/sovereign guaranteed 13,100 164 30 13,234 Other debt securities 3,890 5 24 3,871 Total securities available-for-sale (b) $ 82,097 $ 765 $ 1,032 $ 81,830 Held-to-maturity: U.S. Treasury $ 6,598 $ 3 $ 102 $ 6,499 U.S. government agencies 1,503 — 17 1,486 State and political subdivisions 17 — 1 16 Agency RMBS 25,762 10 715 25,057 Non-agency RMBS 54 4 — 58 Other RMBS 65 2 — 67 Commercial MBS 5 — — 5 Agency commercial MBS 1,327 — 34 1,293 Foreign covered bonds 86 1 — 87 Sovereign debt/sovereign guaranteed 1,513 25 — 1,538 Other debt securities 29 — — 29 Total securities held-to-maturity $ 36,959 $ 45 $ 869 $ 36,135 Total securities $ 119,056 $ 810 $ 1,901 $ 117,965 (a) Includes $1,019 million that were included in the former Grantor Trust. (b) Includes gross unrealized gains of $47 million and gross unrealized losses of $107 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized gains and losses are primarily related to Agency RMBS and will be amortized into net interest revenue over the contractual lives of the securities. Securities at Dec. 31, 2017 Gross unrealized Amortized cost Fair value (in millions) Gains Losses Available-for-sale: U.S. Treasury $ 15,159 $ 264 $ 160 $ 15,263 U.S. government agencies 917 1 10 908 State and political subdivisions 2,949 31 23 2,957 Agency RMBS 24,002 108 291 23,819 Non-agency RMBS (a) 1,265 317 4 1,578 Other RMBS 152 3 6 149 Commercial MBS 1,360 6 6 1,360 Agency commercial MBS 8,793 36 67 8,762 CLOs 2,898 12 1 2,909 Other asset-backed securities 1,040 3 — 1,043 Foreign covered bonds 2,520 18 9 2,529 Corporate bonds 1,249 17 11 1,255 Sovereign debt/sovereign guaranteed 12,405 175 23 12,557 Other debt securities 3,494 9 12 3,491 Money market funds 963 — — 963 Total securities available-for-sale (b) $ 79,166 $ 1,000 $ 623 $ 79,543 Held-to-maturity: U.S. Treasury $ 9,792 $ 6 $ 56 $ 9,742 U.S. government agencies 1,653 — 12 1,641 State and political subdivisions 17 — 1 16 Agency RMBS 26,208 51 332 25,927 Non-agency RMBS 57 5 — 62 Other RMBS 65 — 1 64 Commercial MBS 6 — — 6 Agency commercial MBS 1,324 2 9 1,317 Foreign covered bonds 84 2 — 86 Sovereign debt/sovereign guaranteed 1,593 30 — 1,623 Other debt securities 28 — — 28 Total securities held-to-maturity $ 40,827 $ 96 $ 411 $ 40,512 Total securities $ 119,993 $ 1,096 $ 1,034 $ 120,055 (a) Includes $1,091 million that were included in the former Grantor Trust. (b) Includes gross unrealized gains of $50 million and gross unrealized losses of $144 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized gains and losses are primarily related to Agency RMBS and will be amortized into net interest revenue over the contractual lives of the securities. The following table presents the realized gains, losses and impairments, on a gross basis. Net securities (losses) gains (in millions) 1Q18 4Q17 1Q17 Realized gross gains $ 2 $ 13 $ 11 Realized gross losses (51 ) (38 ) — Recognized gross impairments — (1 ) (1 ) Total net securities (losses) gains $ (49 ) $ (26 ) $ 10 In the first quarter of 2018, we adopted the new accounting guidance included in ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities . As a result, money market fund investments were reclassified to trading assets, primarily from available-for-sale securities. In the first quarter of 2018, certain debt securities with an aggregate amortized cost of $1,117 million and fair value of $1,070 million were transferred from held-to-maturity securities to available-for-sale securities as part of the adoption of ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities . Temporarily impaired securities At March 31, 2018 , the unrealized losses on the investment securities portfolio were primarily attributable to an increase in interest rates from date of purchase, and for certain securities that were transferred from available-for-sale to held-to-maturity, an increase in interest rates through the date they were transferred. Specifically, $107 million of the unrealized losses at March 31, 2018 and $144 million at Dec. 31, 2017 reflected in the available-for-sale sections of the tables below relate to certain securities (primarily Agency RMBS) that were transferred in prior periods from available-for-sale to held-to-maturity. The unrealized losses will be amortized into net interest revenue over the contractual lives of the securities. The transfer created a new cost basis for the securities. As a result, if these securities have experienced unrealized losses since the date of transfer, the corresponding fair value and unrealized losses would be reflected in the held-to-maturity sections of the following tables. We do not intend to sell these securities and it is not more likely than not that we will have to sell these securities. The following tables show the aggregate fair value of investments with a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or more at March 31, 2018 and Dec. 31, 2017 , respectively. Temporarily impaired securities at March 31, 2018 Less than 12 months 12 months or more Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses (in millions) Available-for-sale: U.S. Treasury $ 9,344 $ 149 $ 2,686 $ 125 $ 12,030 $ 274 U.S. government agencies 924 20 120 5 1,044 25 State and political subdivisions 740 7 475 28 1,215 35 Agency RMBS 10,067 175 5,470 235 15,537 410 Non-agency RMBS (a) 20 — 134 2 154 2 Other RMBS 71 3 37 3 108 6 Commercial MBS 655 15 120 5 775 20 Agency commercial MBS 5,107 105 1,269 56 6,376 161 CLOs 375 2 45 — 420 2 Foreign covered bonds 1,261 15 136 3 1,397 18 Corporate bonds 753 23 49 2 802 25 Sovereign debt/sovereign guaranteed 2,322 22 403 8 2,725 30 Other debt securities 2,051 18 259 6 2,310 24 Total securities available-for-sale (b) $ 33,690 $ 554 $ 11,203 $ 478 $ 44,893 $ 1,032 Held-to-maturity: U.S. Treasury $ 3,629 $ 66 $ 2,587 $ 36 $ 6,216 $ 102 U.S. government agencies 556 9 930 8 1,486 17 State and political subdivisions — — 4 1 4 1 Agency RMBS 15,166 352 9,201 363 24,367 715 Agency commercial MBS 1,206 30 58 4 1,264 34 Total securities held-to-maturity $ 20,557 $ 457 $ 12,780 $ 412 $ 33,337 $ 869 Total temporarily impaired securities $ 54,247 $ 1,011 $ 23,983 $ 890 $ 78,230 $ 1,901 (a) Includes $11 million with an unrealized loss of less than $1 million for less than 12 months and $9 million with an unrealized loss for 12 months or more of less than $1 million that were included in the former Grantor Trust. (b) Includes gross unrealized losses for 12 months or more of $107 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized losses are primarily related to Agency RMBS and will be amortized into net interest revenue over the contractual lives of the securities. There were no gross unrealized losses for less than 12 months. Temporarily impaired securities at Dec. 31, 2017 Less than 12 months 12 months or more Total (in millions) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale: U.S. Treasury $ 7,429 $ 131 $ 2,175 $ 29 $ 9,604 $ 160 U.S. government agencies 588 6 160 4 748 10 State and political subdivisions 732 3 518 20 1,250 23 Agency RMBS 8,567 66 5,834 225 14,401 291 Non-agency RMBS (a) 20 — 149 4 169 4 Other RMBS 71 4 45 2 116 6 Commercial MBS 476 3 122 3 598 6 Agency commercial MBS 3,077 28 1,332 39 4,409 67 CLOs 260 1 — — 260 1 Foreign covered bonds 953 7 116 2 1,069 9 Corporate bonds 274 2 288 9 562 11 Sovereign debt/sovereign guaranteed 1,880 12 559 11 2,439 23 Other debt securities 1,855 7 368 5 2,223 12 Total securities available-for-sale (b) $ 26,182 $ 270 $ 11,666 $ 353 $ 37,848 $ 623 Held-to-maturity: U.S. Treasury $ 6,389 $ 41 $ 2,909 $ 15 $ 9,298 $ 56 U.S. government agencies 791 4 850 8 1,641 12 State and political subdivisions — — 4 1 4 1 Agency RMBS 9,458 81 12,305 251 21,763 332 Other RMBS — — 50 1 50 1 Agency commercial MBS 737 7 60 2 797 9 Total securities held-to-maturity $ 17,375 $ 133 $ 16,178 $ 278 $ 33,553 $ 411 Total temporarily impaired securities $ 43,557 $ 403 $ 27,844 $ 631 $ 71,401 $ 1,034 (a) Includes $7 million with an unrealized loss of less than $1 million for less than 12 months and $12 million with an unrealized loss of $1 million for 12 months or more that were included in the former Grantor Trust. (b) Includes gross unrealized losses for 12 months or more of $144 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized losses are primarily related to Agency RMBS and will be amortized into net interest revenue over the contractual lives of the securities. There were no gross unrealized losses for less than 12 months. The following table shows the maturity distribution by carrying amount and yield (on a tax equivalent basis) of our investment securities portfolio. Maturity distribution and yield on investment securities at March 31, 2018 U.S. Treasury U.S. government agencies State and political subdivisions Other bonds, notes and debentures Mortgage/ asset-backed (dollars in millions) Amount Yield (a) Amount Yield (a) Amount Yield (a) Amount Yield (a) Amount Yield (a) Total Securities available-for-sale: One year or less $ 5,093 1.67 % $ 16 2.16 % $ 380 2.04 % $ 5,103 1.12 % $ — — % $ 10,592 Over 1 through 5 years 5,851 1.89 389 2.09 1,445 2.88 13,118 1.05 — — 20,803 Over 5 through 10 years 2,606 2.07 749 2.59 709 2.69 2,616 0.80 — — 6,680 Over 10 years 3,404 3.11 — — 192 2.67 209 1.66 — — 3,805 Mortgage-backed securities — — — — — — — — 36,543 3.00 36,543 Asset-backed securities — — — — — — — — 3,407 2.75 3,407 Total $ 16,954 2.10 % $ 1,154 2.41 % $ 2,726 2.70 % $ 21,046 1.04 % $ 39,950 2.98 % $ 81,830 Securities held-to-maturity: One year or less $ 1,971 1.10 % $ 506 1.13 % $ — — % $ 607 0.62 % $ — — % $ 3,084 Over 1 through 5 years 3,918 1.78 997 1.67 2 5.68 469 0.46 — — 5,386 Over 5 through 10 years 709 1.79 — — 1 5.71 552 0.85 — — 1,262 Over 10 years — — — — 14 4.76 — — — — 14 Mortgage-backed securities — — — — — — — — 27,213 2.82 27,213 Total $ 6,598 1.57 % $ 1,503 1.48 % $ 17 4.94 % $ 1,628 0.65 % $ 27,213 2.82 % $ 36,959 (a) Yields are based upon the amortized cost of securities. Other-than-temporary impairment We conduct periodic reviews of all securities to determine whether OTTI has occurred. Such reviews may incorporate the use of economic models. Various inputs to the economic models are used to determine if an unrealized loss on securities is other-than-temporary. For example, the most significant inputs related to non-agency RMBS are: • Default rate - the number of mortgage loans expected to go into default over the life of the transaction, which is driven by the roll rate of loans in each performance bucket that will ultimately migrate to default; and • Severity - the loss expected to be realized when a loan defaults. To determine if an unrealized loss is other-than-temporary, we project total estimated defaults of the underlying assets (mortgages) and multiply that calculated amount by an estimate of realizable value upon sale of these assets in the marketplace (severity) in order to determine the projected collateral loss. In determining estimated default rate and severity assumptions, we review the performance of the underlying securities, industry studies and market forecasts, as well as our view of the economic outlook affecting collateral. We also evaluate the current credit enhancement underlying the bond to determine the impact on cash flows. If we determine that a given security will be subject to a write-down or loss, we record the expected credit loss as a charge to earnings. The table below shows the projected weighted-average default rates and loss severities for the 2007, 2006 and late 2005 non-agency RMBS and the securities previously held in the Grantor Trust that we established in connection with the restructuring of our investment securities portfolio in 2009, at March 31, 2018 and Dec. 31, 2017 . See Note 15 for carrying values of these securities. Projected weighted-average default rates and loss severities March 31, 2018 Dec. 31, 2017 Default rate Severity Default rate Severity Alt-A 22 % 52 % 22 % 53 % Subprime 38 % 66 % 38 % 66 % Prime 13 % 39 % 13 % 39 % The following table presents pre-tax net securities (losses) gains by type. Net securities (losses) gains (in millions) 1Q18 4Q17 1Q17 Agency RMBS $ (42 ) $ (17 ) $ 1 U.S. Treasury (4 ) (16 ) — Non-agency RMBS — 6 (1 ) Other (3 ) 1 10 Total net securities (losses) gains $ (49 ) $ (26 ) $ 10 The following table reflects investment securities credit losses recorded in earnings. The beginning balance represents the credit loss component for which OTTI occurred on debt securities in prior periods. The additions represent the first time a debt security was credit impaired or when subsequent credit impairments have occurred. The deductions represent credit losses on securities that have been sold, are required to be sold, or for which it is our intention to sell. Debt securities credit loss roll forward (in millions) 1Q18 1Q17 Beginning balance as of Jan. 1 $ 84 $ 88 Add: Initial OTTI credit losses — — Subsequent OTTI credit losses — 1 Less: Realized losses for securities sold 4 — Ending balance as of March 31 $ 80 $ 89 Pledged assets At March 31, 2018 , BNY Mellon had pledged assets of $111 billion , including $92 billion pledged as collateral for potential borrowings at the Federal Reserve Discount Window and $5 billion pledged as collateral for borrowing at the Federal Home Loan Bank. The components of the assets pledged at March 31, 2018 included $93 billion of securities, $13 billion of loans, $4 billion of trading assets and $1 billion of interest-bearing deposits with banks. If there has been no borrowing at the Federal Reserve Discount Window, the Federal Reserve generally allows banks to freely move assets in and out of their pledged assets account to sell or repledge the assets for other purposes. BNY Mellon regularly moves assets in and out of its pledged assets account at the Federal Reserve. At Dec. 31, 2017 , BNY Mellon had pledged assets of $111 billion , including $92 billion pledged as collateral for potential borrowing at the Federal Reserve Discount Window and $5 billion pledged as collateral for borrowing at the Federal Home Loan Bank. The components of the assets pledged at Dec. 31, 2017 included $96 billion of securities, $13 billion of loans and $2 billion of trading assets. At March 31, 2018 and Dec. 31, 2017 , pledged assets included $10 billion and $10 billion , respectively, for which the recipients were permitted to sell or repledge the assets delivered. We also obtain securities as collateral, including receipts under resale agreements, securities borrowed, derivative contracts and custody agreements on terms which permit us to sell or repledge the securities to others. At March 31, 2018 and Dec. 31, 2017 , the market value of the securities received that can be sold or repledged was $78 billion and $86 billion , respectively. We routinely sell or repledge these securities through delivery to third parties. As of March 31, 2018 and Dec. 31, 2017 , the market value of securities collateral sold or repledged was $43 billion and $49 billion , respectively. Restricted cash and securities Cash and securities may be segregated under federal and other regulations or requirements. At March 31, 2018 and Dec. 31, 2017 , cash segregated under federal and other regulations or requirements was $1 billion and $2 billion , respectively. Restricted cash is included in interest-bearing deposits with banks on the consolidated balance sheet. Securities segregated for these purposes were $1 billion at March 31, 2018 and $1 billion at Dec. 31, 2017 . Restricted securities were sourced from securities purchased under resale agreements at March 31, 2018 and Dec. 31, 2017 and are included in federal funds sold and securities purchased under resale agreements on the consolidated balance sheet. |
Loans and asset quality
Loans and asset quality | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans and asset quality | Loans and asset quality Loans The table below provides the details of our loan portfolio and industry concentrations of credit risk at March 31, 2018 and Dec. 31, 2017 . Loans March 31, 2018 Dec. 31, 2017 (in millions) Domestic: Commercial $ 2,284 $ 2,744 Commercial real estate 4,888 4,900 Financial institutions 5,782 5,568 Lease financings 749 772 Wealth management loans and mortgages 16,288 16,420 Other residential mortgages 680 708 Overdrafts 785 963 Other 1,089 1,131 Margin loans 14,993 15,689 Total domestic 47,538 48,895 Foreign: Commercial 325 167 Commercial real estate 5 — Financial institutions 7,011 7,483 Lease financings 533 527 Wealth management loans and mortgages 113 108 Other (primarily overdrafts) 5,138 4,264 Margin loans 146 96 Total foreign 13,271 12,645 Total loans (a) $ 60,809 $ 61,540 (a) Net of unearned income of $382 million at March 31, 2018 and $394 million at Dec. 31, 2017 primarily related to domestic and foreign lease financings. Our loan portfolio consists of three portfolio segments: commercial, lease financings and mortgages. We manage our portfolio at the class level which consists of six classes of financing receivables: commercial, commercial real estate, financial institutions, lease financings, wealth management loans and mortgages, and other residential mortgages. The following tables are presented for each class of financing receivable and provide additional information about our credit risks and the adequacy of our allowance for credit losses. Allowance for credit losses Transactions in the allowance for credit losses are summarized as follows. Allowance for credit losses activity for the quarter ended March 31, 2018 Wealth management loans and mortgages Other residential mortgages (in millions) Commercial Commercial real estate Financial institutions Lease financings All other Foreign Total Beginning balance $ 77 $ 76 $ 23 $ 8 $ 22 $ 20 $ — $ 35 $ 261 Charge-offs — — — — — — — — — Recoveries — — — — — — — — — Net recoveries — — — — — — — — — Provision (2 ) (1 ) (1 ) (1 ) 1 (1 ) — — (5 ) Ending balance $ 75 $ 75 $ 22 $ 7 $ 23 $ 19 $ — $ 35 $ 256 Allowance for: Loan losses $ 23 $ 58 $ 8 $ 7 $ 19 $ 19 $ — $ 22 $ 156 Lending-related commitments 52 17 14 — 4 — — 13 100 Individually evaluated for impairment: Loan balance $ — $ — $ 1 $ — $ 4 $ — $ — $ — $ 5 Allowance for loan losses — — — — 1 — — — 1 Collectively evaluated for impairment: Loan balance $ 2,284 $ 4,888 $ 5,781 $ 749 $ 16,284 $ 680 $ 16,867 (a) $ 13,271 $ 60,804 Allowance for loan losses 23 58 8 7 18 19 — 22 155 (a) Includes $785 million of domestic overdrafts, $14,993 million of margin loans and $1,089 million of other loans at March 31, 2018 . Allowance for credit losses activity for the quarter ended Dec. 31, 2017 Wealth management loans and mortgages Other residential mortgages (in millions) Commercial Commercial real estate Financial institutions Lease financings All other Foreign Total Beginning balance $ 81 $ 75 $ 23 $ 9 $ 21 $ 21 $ — $ 35 $ 265 Charge-offs — — — — — — — — — Recoveries — — — — — 2 — — 2 Net recoveries — — — — — 2 — — 2 Provision (4 ) 1 — (1 ) 1 (3 ) — — (6 ) Ending balance $ 77 $ 76 $ 23 $ 8 $ 22 $ 20 $ — $ 35 $ 261 Allowance for: Loan losses $ 24 $ 58 $ 7 $ 8 $ 18 $ 20 $ — $ 24 $ 159 Lending-related commitments 53 18 16 — 4 — — 11 102 Individually evaluated for impairment: Loan balance $ — $ — $ 1 $ — $ 5 $ — $ — $ — $ 6 Allowance for loan losses — — — — 1 — — — 1 Collectively evaluated for impairment: Loan balance $ 2,744 $ 4,900 $ 5,567 $ 772 $ 16,415 $ 708 $ 17,783 (a) $ 12,645 $ 61,534 Allowance for loan losses 24 58 7 8 17 20 — 24 158 (a) Includes $963 million of domestic overdrafts, $15,689 million of margin loans and $1,131 million of other loans at Dec. 31, 2017 . Allowance for credit losses activity for the quarter ended March 31, 2017 Wealth management loans and mortgages Other residential mortgages All other Foreign Total (in millions) Commercial Commercial real estate Financial institutions Lease financings Beginning balance $ 82 $ 73 $ 26 $ 13 $ 23 $ 28 $ — $ 36 $ 281 Charge-offs — — — — — (1 ) — — (1 ) Recoveries — — — — — 1 — — 1 Net (charge-offs) recoveries — — — — — — — — — Provision — — (3 ) (3 ) 3 (3 ) — 1 (5 ) Ending balance $ 82 $ 73 $ 23 $ 10 $ 26 $ 25 $ — $ 37 $ 276 Allowance for: Loan losses $ 24 $ 54 $ 5 $ 10 $ 22 $ 25 $ — $ 24 $ 164 Lending-related commitments 58 19 18 — 4 — — 13 112 Individually evaluated for impairment: Loan balance $ — $ — $ — $ — $ 5 $ — $ — $ — $ 5 Allowance for loan losses — — — — 3 — — — 3 Collectively evaluated for impairment: Loan balance $ 2,543 $ 4,698 $ 5,387 $ 846 $ 15,904 $ 817 $ 17,873 (a) $ 12,795 $ 60,863 Allowance for loan losses 24 54 5 10 19 25 — 24 161 (a) Includes $673 million of domestic overdrafts, $16,081 million of margin loans and $1,119 million of other loans at March 31, 2017 . Nonperforming assets The table below presents our nonperforming assets. Nonperforming assets (in millions) March 31, 2018 Dec. 31, 2017 Nonperforming loans: Other residential mortgages $ 74 $ 78 Wealth management loans and mortgages 7 7 Commercial real estate — 1 Total nonperforming loans 81 86 Other assets owned 4 4 Total nonperforming assets $ 85 $ 90 At March 31, 2018 , undrawn commitments to borrowers whose loans were classified as nonaccrual or reduced rate were not material. Lost interest Interest income would have increased by $1 million in the first quarter of 2018, fourth quarter of 2017 and first quarter of 2017, if nonperforming loans at period-end had been performing for the entire respective quarter. Impaired loans We use the discounted cash flow method as the primary method for valuing impaired loans. The average recorded investment and unpaid principal balance of impaired loans were less than $10 million for the first quarter of 2018, the fourth quarter of 2017 and the first quarter of 2017. The impaired loans had a related allowance of $1 million at both March 31, 2018 and Dec. 31, 2017. Past due loans The table below presents our past due loans. Past due loans and still accruing interest March 31, 2018 Dec. 31, 2017 Days past due Total past due Days past due Total past due (in millions) 30-59 60-89 ≥90 30-59 60-89 ≥90 Commercial real estate $ 62 $ — $ — $ 62 $ 44 $ — $ — $ 44 Wealth management loans and mortgages 36 1 — 37 39 5 — 44 Other residential mortgages 13 5 5 23 18 5 5 28 Financial institutions — — — — 1 — — 1 Total past due loans $ 111 $ 6 $ 5 $ 122 $ 102 $ 10 $ 5 $ 117 Troubled debt restructurings (“TDRs”) A modified loan is considered a TDR if the debtor is experiencing financial difficulties and the creditor grants a concession to the debtor that would not otherwise be considered. We modified loans of $1 million in the first quarter of 2018, $2 million in the fourth quarter of 2017 and $6 million in the first quarter of 2017, primarily other residential mortgages. Credit quality indicators Our credit strategy is to focus on investment-grade clients that are active users of our non-credit services. Each customer is assigned an internal credit rating, which is mapped to an external rating agency grade equivalent, if possible, based upon a number of dimensions, which are continually evaluated and may change over time. The following tables present information about credit quality indicators. Commercial loan portfolio Commercial loan portfolio – Credit risk profile by creditworthiness category Commercial Commercial real estate Financial institutions March 31, Dec. 31, 2017 March 31, Dec. 31, 2017 March 31, Dec. 31, 2017 (in millions) Investment grade $ 2,427 $ 2,685 $ 4,203 $ 4,277 $ 9,716 $ 10,021 Non-investment grade 182 226 690 623 3,077 3,030 Total $ 2,609 $ 2,911 $ 4,893 $ 4,900 $ 12,793 $ 13,051 The commercial loan portfolio is divided into investment grade and non-investment grade categories based on rating criteria largely consistent with those of the public rating agencies. Each customer in the portfolio is assigned an internal credit rating. These internal credit ratings are generally consistent with the ratings categories of the public rating agencies. Customers with ratings consistent with BBB- (S&P)/Baa3 (Moody’s) or better are considered to be investment grade. Those clients with ratings lower than this threshold are considered to be non-investment grade. Wealth management loans and mortgages Wealth management loans and mortgages – Credit risk profile by internally assigned grade (in millions) March 31, Dec. 31, 2017 Wealth management loans: Investment grade $ 6,933 $ 7,042 Non-investment grade 117 185 Wealth management mortgages 9,351 9,301 Total $ 16,401 $ 16,528 Wealth management non-mortgage loans are not typically rated by external rating agencies. A majority of the wealth management loans are secured by the customers’ investment management accounts or custody accounts. Eligible assets pledged for these loans are typically investment grade fixed-income securities, equities and/or mutual funds. Internal ratings for this portion of the wealth management portfolio, therefore, would equate to investment-grade external ratings. Wealth management loans are provided to select customers based on the pledge of other types of assets, including business assets, fixed assets or a modest amount of commercial real estate. For the loans collateralized by other assets, the credit quality of the obligor is carefully analyzed, but we do not consider this portfolio of loans to be investment grade. Credit quality indicators for wealth management mortgages are not correlated to external ratings. Wealth management mortgages are typically loans to high-net-worth individuals, which are secured primarily by residential property. These loans are primarily interest-only, adjustable rate mortgages with a weighted-average loan-to-value ratio of 62% at origination. In the wealth management portfolio, less than 1% of the mortgages were past due at March 31, 2018 . At March 31, 2018 , the wealth management mortgage portfolio consisted of the following geographic concentrations: California - 24% ; New York - 18% ; Massachusetts - 11% ; Florida - 8% ; and other - 39% . Other residential mortgages The other residential mortgage portfolio primarily consists of 1-4 family residential mortgage loans and totaled $ 680 million at March 31, 2018 and $708 million at Dec. 31, 2017 . These loans are not typically correlated to external ratings. Included in this portfolio at March 31, 2018 are $160 million of mortgage loans purchased in 2005, 2006 and the first quarter of 2007 that are predominantly prime mortgage loans, with a small portion of Alt-A loans. As of March 31, 2018 , the purchased loans in this portfolio had a weighted-average loan-to-value ratio of 76% at origination, and 12% of the serviced loan balance was at least 60 days delinquent. The properties securing the prime and Alt-A mortgage loans were located (in order of concentration) in California, Florida, Virginia, the tri-state area (New York, New Jersey and Connecticut) and Maryland. Overdrafts Overdrafts primarily relate to custody and securities clearance clients and totaled $5.8 billion at March 31, 2018 and $5.1 billion at Dec. 31, 2017 . Overdrafts occur on a daily basis primarily in the custody and securities clearance business and are generally repaid within two business days. Other loans Other loans primarily include loans to consumers that are fully collateralized with equities, mutual funds and fixed-income securities. Margin loans We had $15.1 billion of secured margin loans on our balance sheet at March 31, 2018 compared with $15.8 billion at Dec. 31, 2017 . Margin loans are collateralized with marketable securities, and borrowers are required to maintain a daily collateral margin in excess of 100% of the value of the loan. We have rarely suffered a loss on these types of loans and do not allocate any of our allowance for credit losses to margin loans. Reverse repurchase agreements Reverse repurchase agreements are transactions fully collateralized with high-quality liquid securities. These transactions carry minimal credit risk and therefore are not allocated an allowance for credit losses. |
Goodwill and intangible assets
Goodwill and intangible assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill The tables below provide a breakdown of goodwill by business. Goodwill by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2017 $ 8,389 $ 9,128 $ 47 $ 17,564 Disposition — (52 ) — (52 ) Foreign currency translation 31 53 — 84 Balance at March 31, 2018 $ 8,420 $ 9,129 $ 47 $ 17,596 Goodwill by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2016 $ 8,269 $ 9,000 $ 47 $ 17,316 Foreign currency translation 18 21 — 39 Balance at March 31, 2017 $ 8,287 $ 9,021 $ 47 $ 17,355 Intangible assets The tables below provide a breakdown of intangible assets by business. Intangible assets – net carrying amount by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2017 $ 888 $ 1,674 $ 849 $ 3,411 Amortization (36 ) (13 ) — (49 ) Foreign currency translation — 8 — 8 Balance at March 31, 2018 $ 852 $ 1,669 $ 849 $ 3,370 Intangible assets – net carrying amount by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2016 $ 1,032 $ 1,717 $ 849 $ 3,598 Amortization (37 ) (15 ) — (52 ) Foreign currency translation — 3 — 3 Balance at March 31, 2017 $ 995 $ 1,705 $ 849 $ 3,549 The table below provides a breakdown of intangible assets by type. Intangible assets March 31, 2018 Dec. 31, 2017 (in millions) Gross carrying amount Accumulated amortization Net carrying amount Remaining weighted- average amortization period Gross Accumulated Net carrying amount Subject to amortization: (a) Customer contracts—Investment Services $ 2,263 $ (1,781 ) $ 482 10 years $ 2,260 $ (1,744 ) $ 516 Customer relationships—Investment Management 1,274 (1,038 ) 236 11 years 1,262 (1,015 ) 247 Other 41 (24 ) 17 4 years 42 (23 ) 19 Total subject to amortization 3,578 (2,843 ) 735 10 years 3,564 (2,782 ) 782 Not subject to amortization: (b) Tradenames 1,335 N/A 1,335 N/A 1,334 N/A 1,334 Customer relationships 1,300 N/A 1,300 N/A 1,295 N/A 1,295 Total not subject to amortization 2,635 N/A 2,635 N/A 2,629 N/A 2,629 Total intangible assets $ 6,213 $ (2,843 ) $ 3,370 N/A $ 6,193 $ (2,782 ) $ 3,411 (a) Excludes fully amortized intangible assets. (b) Intangible assets not subject to amortization have an indefinite life. Estimated annual amortization expense for current intangibles for the next five years is as follows: For the year ended Estimated amortization expense (in millions) 2018 $ 181 2019 116 2020 102 2021 79 2022 60 Impairment testing The goodwill impairment test is performed at least annually at the reporting unit level. Intangible assets not subject to amortization are tested for impairment annually or more often if events or circumstances indicate they may be impaired. |
Other assets
Other assets | 3 Months Ended |
Mar. 31, 2018 | |
Other Assets [Abstract] | |
Other assets | Other assets The following table provides the components of other assets presented on the consolidated balance sheet. Other assets March 31, 2018 Dec. 31, 2017 (in millions) Corporate/bank-owned life insurance $ 4,866 $ 4,857 Accounts receivable 3,454 4,590 Fails to deliver 2,761 2,817 Software 1,515 1,499 Prepaid pension assets 1,471 1,416 Income taxes receivable 1,397 1,533 Renewable energy investments 1,354 1,368 Equity in a joint venture and other investments 1,080 1,083 Qualified affordable housing project investments 980 1,014 Federal Reserve Bank stock 477 477 Prepaid expense 472 395 Seed capital 301 288 Fair value of hedging derivatives 56 323 Other (a) 1,454 1,369 Total other assets $ 21,638 $ 23,029 (a) At March 31, 2018 and Dec. 31, 2017 , other assets include $36 million and $82 million , respectively, of Federal Home Loan Bank stock, at cost. Qualified affordable housing project investments We invest in affordable housing projects primarily to satisfy the Company’s requirements under the Community Reinvestment Act. Our total investment in qualified affordable housing projects totaled $980 million at March 31, 2018 and $1.0 billion at Dec. 31, 2017 . Commitments to fund future investments in qualified affordable housing projects totaled $455 million at March 31, 2018 and $486 million at Dec. 31, 2017 and is recorded in other liabilities. A summary of the commitments to fund future investments is as follows: 2018 – $169 million ; 2019 – $119 million ; 2020 – $107 million ; 2021 – $42 million ; 2022 – $1 million ; and 2023 and thereafter – $17 million . Tax credits and other tax benefits recognized were $40 million in the first quarter of 2018 , $41 million in the fourth quarter of 2017 and $38 million in the first quarter of 2017 . Amortization expense included in the provision for income taxes was $33 million in the first quarter of 2018 , $69 million in the fourth quarter of 2017 and $27 million in the first quarter of 2017 . Investments valued using net asset value per share In our Investment Management business, we manage investment assets, including equities, fixed income, money market and multi-asset and alternative investment funds for institutions and other investors. As part of that activity, we make seed capital investments in certain funds. We also hold private equity investments, specifically in small business investment companies (“SBICs”), which are compliant with the Volcker Rule, and certain other corporate investments. Seed capital, private equity and other corporate investments are included in other assets on the consolidated balance sheet. The fair value of these investments was estimated using the net asset value (“NAV”) per share for BNY Mellon’s ownership interest in the funds. The table below presents information on our investments valued using NAV. Other assets valued using NAV March 31, 2018 Dec. 31, 2017 (dollars in millions) Fair value Unfunded commitments Redemption frequency Redemption notice period Fair value Unfunded commitments Redemption frequency Redemption notice period Seed capital $ 42 $ — Daily-quarterly 1-90 days $ 40 $ 1 Daily-quarterly 1-90 days Private equity investments (SBICs) (a) 59 39 N/A N/A 55 42 N/A N/A Other ( b) 59 — Daily-quarterly 1-95 days 59 — Daily-quarterly 1-95 days Total $ 160 $ 39 $ 154 $ 43 (a) Private equity investments primarily include Volcker Rule-compliant investments in SBICs that invest in various sectors of the economy. Private equity investments do not have redemption rights. Distributions from such investments will be received as the underlying investments in the private equity investments, which have a life of 10 years, are liquidated. (b) Primarily relates to investments in funds that relate to deferred compensation arrangements with employees. N/A - Not applicable. |
Contract revenue
Contract revenue | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Contract revenue | Contract revenue Significant accounting policy Revenue is based on terms specified in a contract with a customer, and excludes any amounts collected on behalf of third parties. Revenue is recognized when, or as, a performance obligation is satisfied by transferring control of a good or service to a customer. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring our progress in satisfying the performance obligation in a manner that reflects the transfer of goods and services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time the customer obtains control of the promised good or service. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for the promised goods and services. Taxes assessed by a governmental authority, that are both imposed on, and concurrent with, a specific revenue-producing transaction, are collected from a customer and are excluded from revenue. Nature of services and revenue recognition Fee revenue in Investment Services and Investment Management is primarily variable, based on levels of AUC/A, AUM and the level of client-driven transactions, as specified in fee schedules. Investment Services fees are based primarily on the market value of AUC/A; client accounts, balances and the volume of transactions; securities lending volume and spreads; and fees for other services. Certain fees based on the market value of assets are calculated in arrears on a monthly or quarterly basis. Substantially all services within the Investment Services business are provided over time. Revenue on these services is recognized using the time elapsed method, equal to the expected invoice amount, which typically represents the value provided to the customer for our performance completed to date. Trade execution and clearing services are delivered at a point-in-time, based on customer actions. Revenue for trade execution and clearing services is recognized on trade date, which is consistent with the time that the service was provided. Customers are generally billed for services on a monthly or quarterly basis. Investment management fees are dependent on the overall level and mix of AUM. The management fees, expressed in basis points, are charged for managing those assets. Management fees are typically subject to fee schedules based on the overall level of assets managed and products in which those assets are invested. Investment management fee revenue also includes transactional- and account-based fees. These fees along with distribution and servicing fees are recognized when the services have been complete. Clients are generally billed for services performed on a monthly or quarterly basis. Performance fees are generally calculated as a percentage of the applicable portfolio’s performance in excess of a benchmark index or a peer group’s performance. Performance fees are recognized at the end of the measurement period when they are determinable. See Note 19 for additional information on our two principal businesses, Investment Services and Investment Management and the primary services provided. Disaggregation of contract revenue Contract revenue is included in fee revenue on the consolidated income statement. The following table presents fee revenue related to contracts with customers, disaggregated by type, for each business segment. Disaggregation of contract revenue by business segment (a) Quarter ended March 31, 2018 (in millions) Investment Services Investment Management Other Total Fee revenue - contract revenue: Investment services fees: Asset servicing $ 1,117 $ 25 $ — $ 1,142 Clearing services 413 — 1 414 Issuer services 260 — — 260 Treasury services 138 — — 138 Total investment services fees 1,928 25 1 1,954 Investment management and performance fees 14 942 — 956 Financing-related fees 17 — — 17 Distribution and servicing (14 ) 50 — 36 Investment and other income 69 (51 ) — 18 Total fee revenue - contract revenue 2,014 966 1 2,981 Fee and other revenue - not in scope of ASC 606 (b) 236 46 7 289 Total fee and other revenue $ 2,250 $ 1,012 $ 8 $ 3,270 (a) Business segment data has been determined on an internal management basis of accounting, rather than the generally accepted accounting principles used for consolidated financial reporting. (b) Primarily includes foreign exchange and other trading revenue, financing-related fees, investment and other income and net securities gains, all of which are accounted for using other accounting guidance. Contract balances Our clients are billed based on fee schedules that are agreed upon in each customer contract. Receivables from customers were $3.9 billion at Jan. 1, 2018 and $2.9 billion at March 31, 2018. An allowance is maintained for accounts receivables which is generally based on the number of days outstanding. Adjustments to the allowance are recorded in other expense in the consolidated income statement. A provision of $2 million was recorded in the first quarter of 2018 . Contract assets represent accrued revenues that have not yet been billed to the customers due to certain contractual terms other than the passage of time and were $30 million at Jan. 1, 2018 and $45 million at March 31, 2018. Accrued revenues recorded as contract assets are usually billed on an annual basis. There were no impairments recorded on contract assets in the first quarter of 2018 . Both receivables from customers and contract assets are included in other assets on the consolidated balance sheet. Contract liabilities represent payments received in advance of providing services under certain contracts and were $167 million at Jan. 1, 2018 and $190 million at March 31, 2018. Contract liabilities are included in other liabilities on the consolidated balance sheet. Revenue recognized in the first quarter of 2018 relating to contract liabilities as of Jan. 1, 2018 was $43 million . Changes in contract assets and liabilities primarily relate to either party’s performance under the contracts. Contract costs Incremental costs for obtaining contracts subject to the scope of Accounting Standards Codification (“ASC”) 606, Revenue From Contracts With Customers that are deemed recoverable are capitalized as contract costs. Such costs result from the payment of sales incentives, primarily in the Wealth Management business, and totaled $109 million at March 31, 2018 . Capitalized sales incentives are amortized based on the transfer of goods or services to which the assets relate and typically average nine years . The amortization of capitalized sales incentives, which is primarily included in staff expense, totaled $5 million in the first quarter of 2018 . Costs to fulfill a contract are capitalized when they relate directly to an existing contract or specific anticipated contract, generate or enhance resources that will be used to fulfill performance obligations and are recoverable. Such costs generally represent set-up costs, which include any direct cost incurred at inception of a contract which enables the fulfillment of the performance obligation and totaled $15 million at March 31, 2018 . These capitalized costs are amortized on a straight line basis over the expected contract period which generally range from seven to nine years . The amortization is included in other expense and totaled $1 million in the first quarter of 2018 . There was no impairment recorded on capitalized contract costs in the first quarter of 2018 . Unsatisfied performance obligations We do not have any unsatisfied performance obligations other than those that are subject to a practical expedient election under ASC 606, Revenue From Contracts With Customers . The practical expedient election applies to (i) contracts with an original expected length of one year or less, and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
Net interest revenue
Net interest revenue | 3 Months Ended |
Mar. 31, 2018 | |
Interest Revenue (Expense), Net [Abstract] | |
Net interest revenue | Net interest revenue The following table provides the components of net interest revenue presented on the consolidated income statement. Net interest revenue Quarter ended March 31, 2018 Dec. 31, 2017 March 31, 2017 (in millions) Interest revenue Non-margin loans $ 305 $ 277 $ 245 Margin loans 115 94 75 Securities: Taxable 581 530 461 Exempt from federal income taxes 15 15 17 Total securities 596 545 478 Deposits with banks 42 37 22 Deposits with the Federal Reserve and other central banks 126 102 57 Federal funds sold and securities purchased under resale agreements 170 151 67 Trading assets 27 13 16 Total interest revenue 1,381 1,219 960 Interest expense Deposits 117 64 9 Federal funds purchased and securities sold under repurchase agreements 107 93 24 Trading liabilities 9 1 2 Other borrowed funds 9 13 2 Commercial paper 12 11 5 Customer payables 31 22 7 Long-term debt 177 164 119 Total interest expense 462 368 168 Net interest revenue 919 851 792 Provision for credit losses (5 ) (6 ) (5 ) Net interest revenue after provision for credit losses $ 924 $ 857 $ 797 |
Employee benefit plans
Employee benefit plans | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee benefit plans | Employee benefit plans The components of net periodic benefit (credit) cost are as follows. The service cost component is reflected in staff expense, whereas the remaining components are reflected in other expense. Net periodic benefit (credit) cost Quarter ended March 31, 2018 March 31, 2017 (in millions) Domestic pension benefits Foreign pension benefits Health care benefits Domestic pension benefits Foreign pension benefits Health care benefits Service cost $ — $ 7 $ — $ — $ 7 $ — Interest cost 43 8 2 45 8 2 Expected return on assets (85 ) (15 ) (2 ) (81 ) (12 ) (2 ) Other 17 6 (1 ) 17 9 (1 ) Net periodic benefit (credit) cost $ (25 ) $ 6 $ (1 ) $ (19 ) $ 12 $ (1 ) |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes BNY Mellon recorded an income tax provision of $282 million ( 19.5% effective tax rate) in the first quarter of 2018 and $269 million ( 22.3% effective tax rate) in the first quarter of 2017 . The income tax benefit of $453 million in the fourth quarter of 2017 included an estimated tax benefit of $710 million related to U.S. tax legislation. There were no adjustments to this estimated tax benefit recorded in the first quarter of 2018. Our total tax reserves as of March 31, 2018 were $130 million compared with $128 million at Dec. 31, 2017 . If these tax reserves were unnecessary, $130 million would affect the effective tax rate in future periods. We recognize accrued interest and penalties, if applicable, related to income taxes in income tax expense. Included in the balance sheet at March 31, 2018 is accrued interest, where applicable, of $18 million . The additional tax expense related to interest for the three months ended March 31, 2018 was $1 million , compared with $2 million for the three months ended March 31, 2017 . It is reasonably possible the total reserve for uncertain tax positions could decrease within the next 12 months by approximately $38 million as a result of adjustments related to tax years that are still subject to examination. Our federal income tax returns are closed to examination through 2013. Our New York State, New York City and UK income tax returns are closed to examination through 2012. |
Variable interest entities and
Variable interest entities and securitization | 3 Months Ended |
Mar. 31, 2018 | |
Securitizations And Variable Interest Entities Disclosure [Abstract] | |
Variable interest entities and securitization | Variable interest entities and securitization BNY Mellon has variable interests in VIEs, which include investments in retail, institutional and alternative investment funds, including CLO structures in which we provide asset management services, some of which are consolidated. The investment funds are offered to our retail and institutional clients to provide them with access to investment vehicles with specific investment objectives and strategies that address the client’s investment needs. BNY Mellon earns management fees from these funds as well as performance fees in certain funds and may also provide start-up capital for its new funds. The funds are primarily financed by our customers’ investments in the funds’ equity or debt. Additionally, BNY Mellon invests in qualified affordable housing and renewable energy projects, which are designed to generate a return primarily through the realization of tax credits by the Company. The projects, which are structured as limited partnerships and LLCs, are also VIEs, but are not consolidated. The VIEs previously discussed are included in the scope of ASU 2015-02 and are reviewed for consolidation based on the guidance in ASC 810, Consolidation . We reconsider and reassess whether or not we are the primary beneficiary of a VIE when governing documents or contractual arrangements are changed that would reallocate the obligation to absorb expected losses or receive expected residual returns between BNY Mellon and the other investors. This could occur when BNY Mellon disposes of its variable interests in the fund, when additional variable interests are issued to other investors or when we acquire additional variable interests in the VIE. The following table presents the incremental assets and liabilities included in BNY Mellon’s consolidated financial statements, after applying intercompany eliminations, as of March 31, 2018 and Dec. 31, 2017 . The net assets of any consolidated VIE are solely available to settle the liabilities of the VIE and to settle any investors’ ownership liquidation requests, including any seed capital invested in the VIE by BNY Mellon. Consolidated investments March 31, 2018 Dec. 31, 2017 (in millions) Investment Management funds Securitization Total consolidated investments Investment Management funds Securitization Total consolidated investments Securities - Available-for-sale $ — $ — $ — $ — $ 400 $ 400 Trading assets 353 400 753 516 — 516 Other assets 253 — 253 215 — 215 Total assets $ 606 (a) $ 400 $ 1,006 $ 731 (b) $ 400 $ 1,131 Other liabilities $ 11 $ 363 $ 374 $ 2 $ 367 $ 369 Total liabilities $ 11 (a) $ 363 $ 374 $ 2 (b) $ 367 $ 369 Nonredeemable noncontrolling interests $ 212 (a) $ — $ 212 $ 316 (b) $ — $ 316 (a) Includes voting model entities (“VMEs”) with assets of $55 million , liabilities of less than $1 million and nonredeemable noncontrolling interests of less than $1 million . (b) Includes VMEs with assets of $84 million , liabilities of $1 million and nonredeemable noncontrolling interests of $1 million . BNY Mellon has not provided financial or other support that was not otherwise contractually required to be provided to our VIEs. Additionally, creditors of any consolidated VIEs do not have any recourse to the general credit of BNY Mellon. Non-consolidated VIEs As of March 31, 2018 and Dec. 31, 2017 , the following assets and liabilities related to the VIEs where BNY Mellon is not the primary beneficiary are included in our consolidated financial statements and primarily relate to accounting for our investments in qualified affordable housing and renewable energy projects. The maximum loss exposure indicated in the table below relates solely to BNY Mellon’s investments in, and unfunded commitments to, the VIEs. Non-consolidated VIEs March 31, 2018 Dec. 31, 2017 (in millions) Assets Liabilities Maximum loss exposure Assets Liabilities Maximum loss exposure Securities - Available-for-sale (a) $ 231 $ — $ 231 $ 203 $ — $ 203 Other 2,538 455 2,993 2,592 486 3,078 (a) Includes investments in the Company’s sponsored CLOs. |
Preferred stock
Preferred stock | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Preferred stock | Preferred stock Preferred stock BNY Mellon has 100 million authorized shares of preferred stock with a par value of $0.01 per share. The following table summarizes BNY Mellon’s preferred stock issued and outstanding at March 31, 2018 and Dec. 31, 2017 . Preferred stock summary (a) Total shares issued and outstanding Carrying value (b) (in millions) Per annum dividend rate March 31, 2018 Dec. 31, 2017 March 31, 2018 Dec. 31, 2017 Series A Greater of (i) three-month LIBOR plus 0.565% for the related distribution period; or (ii) 4.000% 5,001 5,001 $ 500 $ 500 Series C 5.2% 5,825 5,825 568 568 Series D 4.50% to but excluding June 20, 2023, then a floating rate equal to the three-month LIBOR plus 2.46% 5,000 5,000 494 494 Series E 4.95% to and including June 20, 2020, then a floating rate equal to the three-month LIBOR plus 3.42% 10,000 10,000 990 990 Series F 4.625% to and including Sept. 20, 2026, then a floating rate equal to the three-month LIBOR plus 3.131% 10,000 10,000 990 990 Total 35,826 35,826 $ 3,542 $ 3,542 (a) All outstanding preferred stock is noncumulative perpetual preferred stock with a liquidation preference of $100,000 per share. (b) The carrying value of the Series C, Series D, Series E and Series F preferred stock is recorded net of issuance costs. On March 20, 2018, The Bank of New York Mellon Corporation paid the following dividends for the noncumulative perpetual preferred stock for the dividend period ending in March 2018 to holders of record as of the close of business on March 5, 2018: • $1,000.00 per share on the Series A Preferred Stock (equivalent to $10.0000 per Normal Preferred Capital Security of Mellon Capital IV, each representing a 1/100th interest in a share of the Series A Preferred Stock); • $1,300.00 per share on the Series C Preferred Stock (equivalent to $0.3250 per depositary share, each representing a 1/4,000th interest in a share of the Series C Preferred Stock); and • $2,312.50 per share on the Series F Preferred Stock (equivalent to $23.1250 per depositary share, each representing a 1/100th interest in a share of the Series F Preferred Stock). For additional information on the preferred stock, see Note 13 of the Notes to Consolidated Financial Statements in our 2017 Annual Report. Terms of the Series A, Series C, Series D, Series E and Series F preferred stock are more fully described in each of their Certificates of Designations, each of which is filed as an Exhibit to this Form 10-Q. |
Other comprehensive income (los
Other comprehensive income (loss) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Other comprehensive income (loss) | Other comprehensive income (loss) Components of other comprehensive income (loss) Quarter ended March 31, 2018 Dec. 31, 2017 March 31, 2017 (in millions) Pre-tax amount Tax (expense) benefit After-tax amount Pre-tax amount Tax (expense) benefit After-tax amount Pre-tax amount Tax (expense) benefit After-tax amount Foreign currency translation: Foreign currency translation adjustments arising during the period (a) $ 201 $ 43 $ 244 $ 93 $ 19 $ 112 $ 96 $ 29 $ 125 Total foreign currency translation 201 43 244 93 19 112 96 29 125 Unrealized (loss) gain on assets available-for-sale: Unrealized (loss) gain arising during period (342 ) 67 (275 ) (120 ) 60 (60 ) 164 (70 ) 94 Reclassification adjustment (b) 49 (12 ) 37 26 (10 ) 16 (10 ) 4 (6 ) Net unrealized (loss) gain on assets available-for-sale (293 ) 55 (238 ) (94 ) 50 (44 ) 154 (66 ) 88 Defined benefit plans: Net gain (loss) arising during the period — — — 451 (111 ) 340 3 (1 ) 2 Foreign exchange adjustment — — — 1 — 1 — — — Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost (b) 22 (5 ) 17 26 (7 ) 19 25 (7 ) 18 Total defined benefit plans 22 (5 ) 17 478 (118 ) 360 28 (8 ) 20 Unrealized gain (loss) on cash flow hedges: Unrealized hedge gain (loss) arising during period 7 (1 ) 6 29 (8 ) 21 14 (5 ) 9 Reclassification of net loss (gain) to net income: FX contracts - other revenue (4 ) 1 (3 ) (8 ) 4 (4 ) — — — FX contracts - salary expense (6 ) 1 (5 ) (25 ) 6 (19 ) 4 (1 ) 3 FX contracts - trading revenue — — — — — — (3 ) 1 (2 ) Total reclassifications to net income (b) (10 ) 2 (8 ) (33 ) 10 (23 ) 1 — 1 Net unrealized (loss) gain on cash flow hedges (3 ) 1 (2 ) (4 ) 2 (2 ) 15 (5 ) 10 Total other comprehensive (loss) income $ (73 ) $ 94 $ 21 $ 473 $ (47 ) $ 426 $ 293 $ (50 ) $ 243 (a) Includes the impact of hedges of net investments in foreign subsidiaries. See Note 17 for additional information. (b) The reclassification adjustment related to the unrealized gain (loss) on assets available-for-sale is recorded as net securities gains on the Consolidated Income Statement. The amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost is recorded as staff expense on the Consolidated Income Statement. See Note 17 of the Notes to Consolidated Financial Statements for the location of the reclassification adjustment related to cash flow hedges on the Consolidated Income Statement. |
Fair value measurement
Fair value measurement | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement | Fair value measurement Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. A three-level hierarchy for fair value measurements is utilized based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. BNY Mellon’s own creditworthiness is considered when valuing liabilities. See Note 18 of the Notes to Consolidated Financial Statements to our 2017 Annual Report for information on how we determine fair value and the fair value hierarchy. The following tables present the financial instruments carried at fair value at March 31, 2018 and Dec. 31, 2017 , by caption on the consolidated balance sheet and by the three-level valuation hierarchy. We have included credit ratings information in certain of the tables because the information indicates the degree of credit risk to which we are exposed, and significant changes in ratings classifications could result in increased risk for us. There were no material transfers between Level 1 and Level 2 during the first quarter of 2018 . Assets measured at fair value on a recurring basis at March 31, 2018 Total carrying (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Available-for-sale securities: U.S. Treasury $ 16,954 $ — $ — $ — $ 16,954 U.S. government agencies — 1,154 — — 1,154 Sovereign debt/sovereign guaranteed 10,418 2,816 — — 13,234 State and political subdivisions — 2,726 — — 2,726 Agency RMBS — 24,036 — — 24,036 Non-agency RMBS (b) — 1,476 — — 1,476 Other RMBS — 146 — — 146 Commercial MBS — 1,373 — — 1,373 Agency commercial MBS — 9,512 — — 9,512 CLOs — 3,129 — — 3,129 Other asset-backed securities — 278 — — 278 Corporate bonds — 1,222 — — 1,222 Other debt securities — 3,871 — — 3,871 Foreign covered bonds — 2,719 — — 2,719 Total available-for-sale securities 27,372 54,458 — — 81,830 Trading assets: Debt instruments (c) 2,663 1,599 — — 4,262 Equity instruments 1,623 — — — 1,623 Derivative assets not designated as hedging: Interest rate 17 3,921 — (2,550 ) 1,388 Foreign exchange — 4,391 — (3,092 ) 1,299 Equity and other contracts 1 100 — (77 ) 24 Total derivative assets not designated as hedging 18 8,412 — (5,719 ) 2,711 Total trading assets 4,304 10,011 — (5,719 ) 8,596 Other assets: Derivative assets designated as hedging: Interest rate — 11 — — 11 Foreign exchange — 45 — — 45 Total derivative assets designated as hedging — 56 — — 56 Other assets (d) 139 206 — — 345 Other assets measured at NAV (d) 160 Total other assets 139 262 — — 561 Subtotal assets of operations at fair value 31,815 64,731 — (5,719 ) 90,987 Percentage of assets of operations prior to netting 33 % 67 % — % Assets of consolidated investment management funds 340 266 — — 606 Total assets $ 32,155 $ 64,997 $ — $ (5,719 ) $ 91,593 Percentage of total assets prior to netting 33 % 67 % — % Liabilities measured at fair value on a recurring basis at March 31, 2018 Total carrying (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Trading liabilities: Debt instruments $ 1,155 $ 104 $ — $ — $ 1,259 Equity instruments 117 — — — 117 Derivative liabilities not designated as hedging: Interest rate 12 3,393 — (2,482 ) 923 Foreign exchange — 4,168 — (3,169 ) 999 Equity and other contracts — 138 — (71 ) 67 Total derivative liabilities not designated as hedging 12 7,699 — (5,722 ) 1,989 Total trading liabilities 1,284 7,803 — (5,722 ) 3,365 Long-term debt (c) — 363 — — 363 Other liabilities – derivative liabilities designated as hedging: Interest rate — 95 — — 95 Foreign exchange — 284 — — 284 Total other liabilities – derivative liabilities designated as hedging — 379 — — 379 Subtotal liabilities of operations at fair value 1,284 8,545 — (5,722 ) 4,107 Percentage of liabilities of operations prior to netting 13 % 87 % — % Liabilities of consolidated investment management funds — 11 — — 11 Total liabilities $ 1,284 $ 8,556 $ — $ (5,722 ) $ 4,118 Percentage of total liabilities prior to netting 13 % 87 % — % (a) ASC 815, Derivatives and Hedging, permits the netting of derivative receivables and derivative payables under legally enforceable master netting agreements and permits the netting of cash collateral. Netting is applicable to derivatives not designated as hedging instruments included in trading assets or trading liabilities and derivatives designated as hedging instruments included in other assets or other liabilities. Netting is allocated to the derivative products based on the net fair value of each product. (b) Includes $1,019 million in Level 2 that was included in the former Grantor Trust. (c) Includes certain interests in securitizations. (d) Includes seed capital, private equity and other assets. Assets measured at fair value on a recurring basis at Dec. 31, 2017 Total carrying value (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Available-for-sale securities: U.S. Treasury $ 15,263 $ — $ — $ — $ 15,263 U.S. government agencies — 908 — — 908 Sovereign debt/sovereign guaranteed 9,919 2,638 — — 12,557 State and political subdivisions — 2,957 — — 2,957 Agency RMBS — 23,819 — — 23,819 Non-agency RMBS (b) — 1,578 — — 1,578 Other RMBS — 149 — — 149 Commercial MBS — 1,360 — — 1,360 Agency commercial MBS — 8,762 — — 8,762 CLOs — 2,909 — — 2,909 Other asset-backed securities — 1,043 — — 1,043 Money market funds (c) 963 — — — 963 Corporate bonds — 1,255 — — 1,255 Other debt securities — 3,491 — — 3,491 Foreign covered bonds — 2,529 — — 2,529 Total available-for-sale securities 26,145 53,398 — — 79,543 Trading assets: Debt and equity instruments (c) 1,344 1,910 — — 3,254 Derivative assets not designated as hedging: Interest rate 9 6,430 — (5,075 ) 1,364 Foreign exchange — 5,104 — (3,720 ) 1,384 Equity and other contracts — 70 — (50 ) 20 Total derivative assets not designated as hedging 9 11,604 — (8,845 ) 2,768 Total trading assets 1,353 13,514 — (8,845 ) 6,022 Other assets : Derivative assets designated as hedging: Interest rate — 278 — — 278 Foreign exchange — 45 — — 45 Total derivative assets designated as hedging — 323 — — 323 Other assets (d) 144 170 — — 314 Other assets measured at NAV (d) 154 Total other assets 144 493 — — 791 Subtotal assets of operations at fair value 27,642 67,405 — (8,845 ) 86,356 Percentage of assets of operations prior to netting 29 % 71 % — % Assets of consolidated investment management funds 322 409 — — 731 Total assets $ 27,964 $ 67,814 $ — $ (8,845 ) $ 87,087 Percentage of total assets prior to netting 29 % 71 % — % Liabilities measured at fair value on a recurring basis at Dec. 31, 2017 Total carrying value (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Trading liabilities: Debt and equity instruments $ 1,128 $ 80 $ — $ — $ 1,208 Derivative liabilities not designated as hedging: Interest rate 4 6,349 — (5,495 ) 858 Foreign exchange — 5,067 — (3,221 ) 1,846 Equity and other contracts — 153 — (81 ) 72 Total derivative liabilities not designated as hedging 4 11,569 — (8,797 ) 2,776 Total trading liabilities 1,132 11,649 — (8,797 ) 3,984 Long-term debt ( c ) — 367 — — 367 Other liabilities – derivative liabilities designated as hedging: Interest rate — 534 — — 534 Foreign exchange — 266 — — 266 Total other liabilities – derivative liabilities designated as hedging — 800 — — 800 Subtotal liabilities of operations at fair value 1,132 12,816 — (8,797 ) 5,151 Percentage of liabilities of operations prior to netting 8 % 92 % — % Liabilities of consolidated investment management funds 1 1 — — 2 Total liabilities $ 1,133 $ 12,817 $ — $ (8,797 ) $ 5,153 Percentage of total liabilities prior to netting 8 % 92 % — % (a) ASC 815, Derivatives and Hedging, permits the netting of derivative receivables and derivative payables under legally enforceable master netting agreements and permits the netting of cash collateral. Netting is applicable to derivatives not designated as hedging instruments included in trading assets or trading liabilities and derivatives designated as hedging instruments included in other assets or other liabilities. Netting is allocated to the derivative products based on the net fair value of each product. (b) Includes $1,091 million in Level 2 that was included in the former Grantor Trust. (c) Includes certain interests in securitizations. (d) Includes private equity investments and seed capital. Details of certain items measured at fair value on a recurring basis March 31, 2018 Dec. 31, 2017 Total carrying value (b) Ratings (a) Total carrying value (b) Ratings (a) AAA/ AA- A+/ A- BBB+/ BBB- BB+ and lower AAA/ AA- A+/ A- BBB+/ BBB- BB+ and lower (dollars in millions) Non-agency RMBS (c) , originated in: 2007 $ 317 — % — % 5 % 95 % $ 351 — % — % — % 100 % 2006 363 — — — 100 387 — — — 100 2005 486 5 2 6 87 507 6 2 5 87 2004 and earlier 310 3 3 32 62 333 3 3 30 64 Total non-agency RMBS $ 1,476 3 % 1 % 9 % 87 % $ 1,578 3 % 1 % 8 % 88 % Commercial MBS, originated in: 2009-2017 $ 1,321 96 % 4 % — % — % $ 1,309 94 % 6 % — % — % 2005 52 100 — — — 51 100 — — — Total commercial MBS $ 1,373 96 % 4 % — % — % $ 1,360 94 % 6 % — % — % Other RMBS, originated in: 2007 and earlier $ 146 38 % 62 % — % — % $ 149 37 % 63 % — % — % Total other RMBS $ 146 38 % 62 % — % — % $ 149 37 % 63 % — % — % Foreign covered bonds: Canada $ 1,609 100 % — % — % — % $ 1,659 100 % — % — % — % Australia 347 100 — — — 265 100 — — — United Kingdom 239 100 — — — 103 100 — — — Sweden 204 100 — — — 136 100 — — — Other 320 100 — — — 366 100 — — — Total foreign covered bonds $ 2,719 100 % — % — % — % $ 2,529 100 % — % — % — % Sovereign debt/sovereign guaranteed: United Kingdom $ 3,140 100 % — % — % — % $ 3,052 100 % — % — % — % France 2,171 100 — — — 2,046 100 — — — Germany 1,856 100 — — — 1,586 100 — — — Spain 1,681 — — 100 — 1,635 — — 100 — Italy 1,138 — — 100 — 1,292 — — 100 — Netherlands 1,050 100 — — — 1,027 100 — — — Ireland 857 — 100 — — 843 — 100 — — Belgium 820 100 — — — 803 100 — — — Other (d) 521 75 — — 25 273 50 — — 50 Total sovereign debt/sovereign guaranteed $ 13,234 71 % 7 % 21 % 1 % $ 12,557 69 % 7 % 23 % 1 % (a) Represents ratings by S&P or the equivalent. (b) At March 31, 2018 and Dec. 31, 2017 , sovereign debt/sovereign guaranteed securities were included in Level 1 and Level 2 in the valuation hierarchy. All other assets in the table are Level 2 assets in the valuation hierarchy. (c) Includes $1,019 million at March 31, 2018 and $1,091 million at Dec. 31, 2017 that were included in the former Grantor Trust. (d) Includes non-investment grade sovereign debt/sovereign guaranteed securities related to Brazil of $133 million at March 31, 2018 and $136 million at Dec. 31, 2017 . Changes in Level 3 fair value measurements Our classification of a financial instrument in Level 3 of the valuation hierarchy is based on the significance of the unobservable factors to the overall fair value measurement. However, these instruments generally include other observable components that are actively quoted or validated to third-party sources as well as the unobservable parameters in our valuation methodologies. We also manage the risks of Level 3 financial instruments using securities and derivatives that are Level 1 or Level 2 instruments. The Company has a Level 3 Pricing Committee which evaluates the valuation techniques used in determining the fair value of Level 3 assets and liabilities. There were no financial instruments recorded at fair value on a recurring basis classified in Level 3 of the valuation hierarchy in the first quarter of 2018 and first quarter of 2017 . Assets and liabilities measured at fair value on a nonrecurring basis Under certain circumstances, we make adjustments to fair value our assets, liabilities and unfunded lending-related commitments although they are not measured at fair value on an ongoing basis. Examples would be the recording of an impairment of an asset and non-readily marketable equity securities carried at cost with upward or downward adjustments. The following tables present the financial instruments carried on the consolidated balance sheet by caption and level in the fair value hierarchy as of March 31, 2018 and Dec. 31, 2017 , for which a nonrecurring change in fair value has been recorded during the quarters ended March 31, 2018 and Dec. 31, 2017 . Assets measured at fair value on a nonrecurring basis at March 31, 2018 Total carrying value (in millions) Level 1 Level 2 Level 3 Loans (a) $ — $ 70 $ 5 $ 75 Other assets (b) — 30 — 30 Total assets at fair value on a nonrecurring basis $ — $ 100 $ 5 $ 105 Assets measured at fair value on a nonrecurring basis at Dec. 31, 2017 Total carrying value (in millions) Level 1 Level 2 Level 3 Loans (a) $ — $ 73 $ 6 $ 79 Other assets (b) — 4 — 4 Total assets at fair value on a nonrecurring basis $ — $ 77 $ 6 $ 83 (a) During the quarters ended March 31, 2018 and Dec. 31, 2017 , the fair value of these loans decreased less than $1 million and less than $1 million , respectively, based on the fair value of the underlying collateral based on guidance in ASC 310, Receivables, with an offset to the allowance for credit losses. (b) Includes other assets received in satisfaction of debt. Estimated fair value of financial instruments The following tables present the estimated fair value and the carrying amount of financial instruments not carried at fair value on the consolidated balance sheet at March 31, 2018 and Dec. 31, 2017 , by caption on the consolidated balance sheet and by the valuation hierarchy. See Note 18 of the Notes to Consolidated Financial Statements in our 2017 Annual Report for additional information regarding the financial instruments within the scope of this disclosure, and the methods and significant assumptions used to estimate their fair value. Summary of financial instruments March 31, 2018 (in millions) Level 1 Level 2 Level 3 Total estimated fair value Carrying amount Assets: Interest-bearing deposits with the Federal Reserve and other central banks $ — $ 91,431 $ — $ 91,431 $ 91,431 Interest-bearing deposits with banks — 15,194 — 15,194 15,186 Federal funds sold and securities purchased under resale agreements — 28,784 — 28,784 28,784 Securities held-to-maturity 8,037 28,098 — 36,135 36,959 Loans (a) — 59,312 — 59,312 59,371 Other financial assets 4,636 1,208 — 5,844 5,844 Total $ 12,673 $ 224,027 $ — $ 236,700 $ 237,575 Liabilities: Noninterest-bearing deposits $ — $ 76,880 $ — $ 76,880 $ 76,880 Interest-bearing deposits — 163,158 — 163,158 164,964 Federal funds purchased and securities sold under repurchase agreements — 21,600 — 21,600 21,600 Payables to customers and broker-dealers — 20,172 — 20,172 20,172 Commercial paper — 3,936 — 3,936 3,936 Borrowings — 1,432 — 1,432 1,432 Long-term debt — 27,150 — 27,150 27,576 Total $ — $ 314,328 $ — $ 314,328 $ 316,560 (a) Does not include the leasing portfolio. Summary of financial instruments Dec. 31, 2017 (in millions) Level 1 Level 2 Level 3 Total estimated Carrying Assets: Interest-bearing deposits with the Federal Reserve and other central banks $ — $ 91,510 $ — $ 91,510 $ 91,510 Interest-bearing deposits with banks — 11,982 — 11,982 11,979 Federal funds sold and securities purchased under resale agreements — 28,135 — 28,135 28,135 Securities held-to-maturity 11,365 29,147 — 40,512 40,827 Loans (a) — 60,219 — 60,219 60,082 Other financial assets 5,382 1,244 — 6,626 6,626 Total $ 16,747 $ 222,237 $ — $ 238,984 $ 239,159 Liabilities: Noninterest-bearing deposits $ — $ 82,716 $ — $ 82,716 $ 82,716 Interest-bearing deposits — 160,042 — 160,042 161,606 Federal funds purchased and securities sold under repurchase agreements — 15,163 — 15,163 15,163 Payables to customers and broker-dealers — 20,184 — 20,184 20,184 Commercial paper — 3,075 — 3,075 3,075 Borrowings — 2,931 — 2,931 2,931 Long-term debt — 27,789 — 27,789 27,612 Total $ — $ 311,900 $ — $ 311,900 $ 313,287 (a) Does not include the leasing portfolio. The table below summarizes the carrying amount of the hedged financial instruments, the notional amount of the hedge and the unrealized gain (loss) (estimated fair value) of the derivatives. Hedged financial instruments Carrying amount Notional amount of hedge Unrealized (in millions) Gain (Loss) March 31, 2018 Securities available-for-sale $ 13,522 $ 13,411 $ 8 $ (87 ) Long-term debt 24,089 24,600 — (8 ) Dec. 31, 2017 Securities available-for-sale $ 12,307 $ 12,365 $ 102 $ (301 ) Long-term debt 23,821 23,950 175 (233 ) |
Fair value option
Fair value option | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value option | Fair value option We elected fair value as an alternative measurement for selected financial assets and liabilities. The following table presents the assets and liabilities of consolidated investment management funds, at fair value. Assets and liabilities of consolidated investment management funds, at fair value March 31, 2018 Dec. 31, 2017 (in millions) Assets of consolidated investment management funds: Trading assets $ 353 $ 516 Other assets 253 215 Total assets of consolidated investment management funds $ 606 $ 731 Liabilities of consolidated investment management funds: Other liabilities $ 11 $ 2 Total liabilities of consolidated investment management funds $ 11 $ 2 BNY Mellon values the assets and liabilities of its consolidated investment management funds using quoted prices for identical assets or liabilities in active markets or observable inputs such as quoted prices for similar assets or liabilities. Quoted prices for either identical or similar assets or liabilities in inactive markets may also be used. Accordingly, fair value best reflects the interests BNY Mellon holds in the economic performance of the consolidated investment management funds. Changes in the value of the assets and liabilities are recorded in the consolidated income statement as investment income of consolidated investment management funds and in the interest of investment management fund note holders, respectively. We have elected the fair value option on $240 million of long-term debt. The fair value of this long-term debt was $363 million at March 31, 2018 and $367 million at Dec. 31, 2017 . The long-term debt is valued using observable market inputs and is included in Level 2 of the valuation hierarchy. The following table presents the change in fair value of long-term debt recorded in foreign exchange and other trading revenue in the consolidated income statement. Foreign exchange and other trading revenue Quarter ended March 31, 2018 Dec. 31, 2017 March 31, 2017 (in millions) Long-term debt (a) $ 4 $ 2 $ (1 ) (a) The change in fair value is approximately offset by an economic hedge included in foreign exchange and other trading revenue. |
Derivative instruments
Derivative instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative instruments | Derivative instruments We use derivatives to manage exposure to market risk, including interest rate risk, equity price risk and foreign currency risk, as well as credit risk. Our trading activities are focused on acting as a market-maker for our customers and facilitating customer trades in compliance with the Volcker Rule. The notional amounts for derivative financial instruments express the dollar volume of the transactions; however, credit risk is much smaller. We perform credit reviews and enter into netting agreements and collateral arrangements to minimize the credit risk of derivative financial instruments. We enter into offsetting positions to reduce exposure to foreign currency, interest rate and equity price risk. Use of derivative financial instruments involves reliance on counterparties. Failure of a counterparty to honor its obligation under a derivative contract is a risk we assume whenever we engage in a derivative contract. There were no counterparty default losses recorded in the first quarter of 2018 or the first quarter of 2017 . Hedging derivatives We utilize interest rate swap agreements to manage our exposure to interest rate fluctuations. We enter into fair value hedges as an interest rate risk management strategy to reduce fair value variability by converting certain fixed rate interest payments associated with available-for-sale investment securities, deposits and long-term debt to LIBOR. The available-for-sale investment securities hedged consist of U.S. Treasury bonds, agency and non-agency commercial MBS, sovereign debt and covered bonds that had original maturities of 30 years or less at initial purchase. At March 31, 2018 , $13.3 billion face amount of available-for-sale securities were hedged with interest rate swaps designated as fair value hedges that had notional values of $13.3 billion . The fixed rate long-term debt instruments hedged generally have original maturities of five to 30 years. We issue both callable and non-callable debt. The debt is hedged with “receive fixed rate, pay variable rate” swaps. At March 31, 2018 , $24.6 billion par value of debt was hedged with interest rate swaps that had notional values of $24.6 billion . In addition, we utilize forward foreign exchange contracts as hedges to mitigate foreign exchange exposures. We use forward foreign exchange contracts as cash flow hedges to convert certain forecasted non-U.S. dollar revenue and expenses into U.S. dollars. We use forward foreign exchange contracts with maturities of 15 months or less as cash flow hedges to hedge our foreign exchange exposure to Indian rupee, British pound, Hong Kong dollar, Singapore dollar, Polish zloty and Canadian dollar revenue and expense transactions in entities that have the U.S. dollar as their functional currency. As of March 31, 2018 , the hedged forecasted foreign currency transactions and designated forward foreign exchange contract hedges were $415 million (notional), with a pre-tax gain of $9 million recorded in accumulated other comprehensive income. This gain will be reclassified to earnings over the next 12 months . Forward foreign exchange contracts are also used to hedge the value of our net investments in foreign subsidiaries. These forward foreign exchange contracts have maturities of less than one year . The derivatives employed are designated as hedges of changes in value of our foreign investments due to exchange rates. Changes in the value of the forward foreign exchange contracts offset the changes in value of the foreign investments due to changes in foreign exchange rates. The change in fair market value of these forward foreign exchange contracts is deferred and reported within foreign currency translation adjustments in shareholders’ equity, net of tax. At March 31, 2018 , forward foreign exchange contracts with notional amounts totaling $7.4 billion were designated as hedges. In addition to forward foreign exchange contracts, we also designate non-derivative financial instruments as hedges of our net investments in foreign subsidiaries. Those non-derivative financial instruments designated as hedges of our net investments in foreign subsidiaries were all long-term liabilities of BNY Mellon in various currencies, and, at March 31, 2018 , had a combined U.S. dollar equivalent value of $188 million . The following table presents the gains (losses) related to our hedging derivative portfolio recognized in the income statement. Income statement impact of fair value and cash flow hedges Quarter ended (in millions) Location of gains (losses) March 31, 2018 Dec. 31, 2017 March 31, 2017 Fair value hedges of available-for-sale securities Derivative Interest income $ 397 $ 91 $ 82 Hedged item Interest income (383 ) (93 ) (81 ) Fair value hedges of long-term debt Derivative Interest expense (378 ) (185 ) (72 ) Hedged item Interest expense 377 178 67 Cash flow hedges of forecasted FX exposures Gain reclassified from OCI into income Trading revenue — — 3 Gain (loss) reclassified from OCI into income Salary expense 6 25 (4 ) Gain reclassified from OCI into income Other revenue 4 8 — Gains (losses) recognized in the consolidated income statement due to fair value and cash flow hedging relationships $ 23 $ 24 $ (5 ) The following table presents the impact of hedging derivatives used in net investment hedging relationships in the income statement. Impact of derivative instruments used in net investment hedging relationships in the income statement (in millions) Derivatives in net investment hedging relationships Gain or (loss) recognized in accumulated OCI on derivatives Location of gain or (loss) reclassified from accumulated OCI into income Gain or (loss) reclassified from accumulated OCI into income 1Q18 4Q17 1Q17 1Q18 4Q17 1Q17 FX contracts $ (158 ) $ (49 ) $ (96 ) Net interest revenue $ — $ — $ — The following table presents information on the hedged items in fair value hedging relationships. Hedged items in fair value hedging relationships at March 31, 2018 Carrying amount of hedged asset or liability Hedge accounting basis adjustment increase (decrease) (in millions) Available-for-sale investment securities $ 13,522 $ (238 ) Long-term debt 24,089 (511 ) (a) (a) Includes $14 million of basis adjustment (reduction) on long-term debt associated with terminated hedges, whereby the long-term debt instrument has been subsequently re-designated in new hedge relationships existing as of the balance sheet date. The following table summarizes the notional amount and credit exposure of our total derivative portfolio at March 31, 2018 and Dec. 31, 2017 . Impact of derivative instruments on the balance sheet Notional value Asset derivatives fair value Liability derivatives fair value (in millions) March 31, 2018 Dec. 31, 2017 March 31, 2018 Dec. 31, 2017 March 31, 2018 Dec. 31, 2017 Derivatives designated as hedging instruments: (a) Interest rate contracts $ 38,011 $ 36,315 $ 11 $ 278 $ 95 $ 534 Foreign exchange contracts 8,212 8,923 45 45 284 266 Total derivatives designated as hedging instruments $ 56 $ 323 $ 379 $ 800 Derivatives not designated as hedging instruments: (b) Interest rate contracts $ 286,222 $ 267,485 $ 3,938 $ 6,439 $ 3,405 $ 6,353 Foreign exchange contracts 793,758 767,999 4,391 5,104 4,168 5,067 Equity contracts 1,615 1,698 101 70 135 149 Credit contracts 180 180 — — 3 4 Total derivatives not designated as hedging instruments $ 8,430 $ 11,613 $ 7,711 $ 11,573 Total derivatives fair value (c) $ 8,486 $ 11,936 $ 8,090 $ 12,373 Effect of master netting agreements (d) (5,719 ) (8,845 ) (5,722 ) (8,797 ) Fair value after effect of master netting agreements $ 2,767 $ 3,091 $ 2,368 $ 3,576 (a) The fair value of asset derivatives and liability derivatives designated as hedging instruments is recorded as other assets and other liabilities, respectively, on the balance sheet. (b) The fair value of asset derivatives and liability derivatives not designated as hedging instruments is recorded as trading assets and trading liabilities, respectively, on the balance sheet. (c) Fair values are on a gross basis, before consideration of master netting agreements, as required by ASC 815, Derivatives and Hedging. (d) Effect of master netting agreements includes cash collateral received and paid of $808 million and $811 million , respectively, at March 31, 2018 , and $925 million and $877 million , respectively, at Dec. 31, 2017 . Trading activities (including trading derivatives) We manage trading risk through a system of position limits, a VaR methodology based on historical simulation and other market sensitivity measures. Risk is monitored and reported to senior management by a separate unit, independent from trading, on a daily basis. Based on certain assumptions, the VaR methodology is designed to capture the potential overnight pre-tax dollar loss from adverse changes in fair values of all trading positions. The calculation assumes a one -day holding period, utilizes a 99% confidence level and incorporates non-linear product characteristics. The VaR model is one of several statistical models used to develop economic capital results, which are allocated to lines of business for computing risk-adjusted performance. VaR methodology does not evaluate risk attributable to extraordinary financial, economic or other occurrences. As a result, the risk assessment process includes a number of stress scenarios based upon the risk factors in the portfolio and management’s assessment of market conditions. Additional stress scenarios based upon historical market events are also performed. Stress tests may incorporate the impact of reduced market liquidity and the breakdown of historically observed correlations and extreme scenarios. VaR and other statistical measures, stress testing and sensitivity analysis are incorporated in other risk management materials. The following table presents our foreign exchange and other trading revenue. Foreign exchange and other trading revenue (in millions) 1Q18 4Q17 1Q17 Foreign exchange $ 183 $ 175 $ 154 Other trading revenue (loss) 26 (9 ) 10 Total foreign exchange and other trading revenue $ 209 $ 166 $ 164 Foreign exchange revenue includes income from purchasing and selling foreign currencies and currency forwards, futures and options. Other trading revenue reflects results from trading in cash instruments including fixed income and equity securities and non-foreign exchange derivatives. Counterparty credit risk and collateral We assess credit risk of our counterparties through regular examination of their financial statements, confidential communication with the management of those counterparties and regular monitoring of publicly available credit rating information. This and other information is used to develop proprietary credit rating metrics used to assess credit quality. Collateral requirements are determined after a comprehensive review of the credit quality of each counterparty. Collateral is generally held or pledged in the form of cash or highly liquid government securities. Collateral requirements are monitored and adjusted daily. Additional disclosures concerning derivative financial instruments are provided in Note 15 of the Notes to Consolidated Financial Statements. Disclosure of contingent features in OTC derivative instruments Certain OTC derivative contracts and/or collateral agreements of The Bank of New York Mellon, our largest banking subsidiary and the subsidiary through which BNY Mellon enters into the substantial majority of its OTC derivative contracts and/or collateral agreements, contain provisions that may require us to take certain actions if The Bank of New York Mellon’s public debt rating fell to a certain level. Early termination provisions, or “close-out” agreements, in those contracts could trigger immediate payment of outstanding contracts that are in net liability positions. Certain collateral agreements would require The Bank of New York Mellon to immediately post additional collateral to cover some or all of The Bank of New York Mellon’s liabilities to a counterparty. The following table shows the fair value of contracts falling under early termination provisions that were in net liability positions as of March 31, 2018 for three key ratings triggers. If The Bank of New York Mellon’s rating was changed to (Moody’s/S&P) Potential close-out exposures (fair value) (a) A3/A- $ 16 million Baa2/BBB $ 232 million Ba1/BB+ $ 1,419 million (a) The amounts represent potential total close-out values if The Bank of New York Mellon’s rating were to immediately drop to the indicated levels. The aggregated fair value of contracts impacting potential trade close-out amounts and collateral obligations can fluctuate from quarter to quarter due to changes in market conditions, changes in the composition of counterparty trades, new business or changes to the agreement definitions establishing close-out or collateral obligations. If The Bank of New York Mellon’s debt rating had fallen below investment grade on March 31, 2018 , existing collateral arrangements would have required us to post an additional $144 million of collateral. Offsetting assets and liabilities The following tables present derivative instruments and financial instruments that are either subject to an enforceable netting agreement or offset by collateral arrangements. There were no derivative instruments or financial instruments subject to a legally enforceable netting agreement for which we are not currently netting. Offsetting of derivative assets and financial assets at March 31, 2018 Gross assets recognized Gross amounts offset in the balance sheet Net assets recognized in the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral received Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 3,270 $ 2,550 $ 720 $ 140 $ — $ 580 Foreign exchange contracts 3,885 3,092 793 137 — 656 Equity and other contracts 98 77 21 — — 21 Total derivatives subject to netting arrangements 7,253 5,719 1,534 277 — 1,257 Total derivatives not subject to netting arrangements 1,233 — 1,233 — — 1,233 Total derivatives 8,486 5,719 2,767 277 — 2,490 Reverse repurchase agreements 36,755 18,763 (b) 17,992 17,981 — 11 Securities borrowing 10,792 — 10,792 10,546 — 246 Total $ 56,033 $ 24,482 $ 31,551 $ 28,804 $ — $ 2,747 Offsetting of derivative assets and financial assets at Dec. 31, 2017 Gross assets recognized Gross amounts offset in the balance sheet Net assets recognized in the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral received Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 5,915 $ 5,075 $ 840 $ 178 $ — $ 662 Foreign exchange contracts 4,666 3,720 946 116 — 830 Equity and other contracts 67 50 17 — — 17 Total derivatives subject to netting arrangements 10,648 8,845 1,803 294 — 1,509 Total derivatives not subject to netting arrangements 1,288 — 1,288 — — 1,288 Total derivatives 11,936 8,845 3,091 294 — 2,797 Reverse repurchase agreements 42,784 25,848 (b) 16,936 16,923 — 13 Securities borrowing 11,199 — 11,199 10,858 — 341 Total $ 65,919 $ 34,693 $ 31,226 $ 28,075 $ — $ 3,151 (a) Includes the effect of netting agreements and net cash collateral received. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions. (b) Offsetting of reverse repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. Offsetting of derivative liabilities and financial liabilities at March 31, 2018 Net liabilities recognized in the balance sheet Gross liabilities recognized Gross amounts offset in the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral pledged Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 3,424 $ 2,482 $ 942 $ 834 $ — $ 108 Foreign exchange contracts 3,964 3,168 796 185 — 611 Equity and other contracts 128 72 56 53 — 3 Total derivatives subject to netting arrangements 7,516 5,722 1,794 1,072 — 722 Total derivatives not subject to netting arrangements 574 — 574 — — 574 Total derivatives 8,090 5,722 2,368 1,072 — 1,296 Repurchase agreements 27,763 18,763 (b) 9,000 9,000 — — Securities lending 1,332 — 1,332 1,278 — 54 Total $ 37,185 $ 24,485 $ 12,700 $ 11,350 $ — $ 1,350 Offsetting of derivative liabilities and financial liabilities at Dec. 31, 2017 Net liabilities recognized in the balance sheet Gross liabilities recognized Gross amounts offset in the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral pledged Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 6,810 $ 5,495 $ 1,315 $ 1,222 $ — $ 93 Foreign exchange contracts 4,765 3,221 1,544 177 — 1,367 Equity and other contracts 143 81 62 58 — 4 Total derivatives subject to netting arrangements 11,718 8,797 2,921 1,457 — 1,464 Total derivatives not subject to netting arrangements 655 — 655 — — 655 Total derivatives 12,373 8,797 3,576 1,457 — 2,119 Repurchase agreements 33,908 25,848 (b) 8,060 8,059 — 1 Securities lending 2,186 — 2,186 2,091 — 95 Total $ 48,467 $ 34,645 $ 13,822 $ 11,607 $ — $ 2,215 (a) Includes the effect of netting agreements and net cash collateral paid. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions. (b) Offsetting of repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. Secured borrowings The following table presents the contract value of repurchase agreements and securities lending transactions accounted for as secured borrowings by the type of collateral provided to counterparties. Repurchase agreements and securities lending transactions accounted for as secured borrowings March 31, 2018 Dec. 31, 2017 Remaining contractual maturity Total Remaining contractual maturity Total (in millions) Overnight and continuous Up to 30 days 30 days or more Overnight and continuous Up to 30 days 30 days or more Repurchase agreements: U.S. Treasury $ 19,858 $ 1 $ — $ 19,859 $ 26,883 $ 11 $ — $ 26,894 U.S. government agencies 719 118 — 837 570 180 — 750 Agency RMBS 1,808 181 1,032 3,021 2,574 109 — 2,683 Corporate bonds 712 — 1,132 1,844 373 — 1,052 1,425 Other debt securities 655 — 930 1,585 253 — 731 984 Equity securities 411 — 206 617 655 — 517 1,172 Total $ 24,163 $ 300 $ 3,300 $ 27,763 $ 31,308 $ 300 $ 2,300 $ 33,908 Securities lending: U.S. government agencies $ 20 $ — $ — $ 20 $ 72 $ — $ — $ 72 Other debt securities 369 — — 369 316 — — 316 Equity securities 943 — — 943 1,798 — — 1,798 Total $ 1,332 $ — $ — $ 1,332 $ 2,186 $ — $ — $ 2,186 Total borrowings $ 25,495 $ 300 $ 3,300 $ 29,095 $ 33,494 $ 300 $ 2,300 $ 36,094 BNY Mellon’s repurchase agreements and securities lending transactions primarily encounter risk associated with liquidity. We are required to pledge collateral based on predetermined terms within the agreements. If we were to experience a decline in the fair value of the collateral pledged for these transactions, we could be required to provide additional collateral to the counterparty, therefore decreasing the amount of assets available for other liquidity needs that may arise. BNY Mellon also offers tri-party collateral agency services in the tri-party repo market where we are exposed to credit risk. In order to mitigate this risk, we require dealers to fully secure intraday credit. |
Commitments and contingent liab
Commitments and contingent liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingent liabilities | Commitments and contingent liabilities Off-balance sheet arrangements In the normal course of business, various commitments and contingent liabilities are outstanding that are not reflected in the accompanying consolidated balance sheets. Our significant trading and off-balance sheet risks are securities, foreign currency and interest rate risk management products, commercial lending commitments, letters of credit and securities lending indemnifications. We assume these risks to reduce interest rate and foreign currency risks, to provide customers with the ability to meet credit and liquidity needs and to hedge foreign currency and interest rate risks. These items involve, to varying degrees, credit, foreign currency and interest rate risks not recognized on the balance sheet. Our off-balance sheet risks are managed and monitored in manners similar to those used for on-balance sheet risks. The following table presents a summary of our off-balance sheet credit risks. Off-balance sheet credit risks March 31, 2018 Dec. 31, 2017 (in millions) Lending commitments $ 51,312 $ 51,467 Standby letters of credit (a) 3,367 3,531 Commercial letters of credit 191 122 Securities lending indemnifications (b)(c) 462,900 432,084 (a) Net of participations totaling $605 million at March 31, 2018 and $672 million at Dec. 31, 2017 . (b) Excludes the indemnification for securities for which BNY Mellon acts as an agent on behalf of CIBC Mellon clients, which totaled $70 billion at March 31, 2018 and $69 billion at Dec. 31, 2017 . (c) Includes cash collateral, invested in indemnified repurchase agreements, held by us as securities lending agent of $36 billion at March 31, 2018 and $33 billion at Dec. 31, 2017 . The total potential loss on undrawn lending commitments, standby and commercial letters of credit, and securities lending indemnifications is equal to the total notional amount if drawn upon, which does not consider the value of any collateral. Since many of the lending commitments are expected to expire without being drawn upon, the total amount does not necessarily represent future cash requirements. A summary of lending commitment maturities is as follows: $30.5 billion in less than one year, $20.6 billion in one to five years and $165 million over five years. SBLCs principally support obligations of corporate clients and were collateralized with cash and securities of $141 million at March 31, 2018 and $160 million at Dec. 31, 2017 . At March 31, 2018 , $2.3 billion of the SBLCs will expire within one year and $1.1 billion in one to five years. We must recognize, at the inception of an SBLC and foreign and other guarantees, a liability for the fair value of the obligation undertaken in issuing the guarantee. The fair value of the liability, which was recorded with a corresponding asset in other assets, was estimated as the present value of contractual customer fees. The estimated liability for losses related to SBLCs and foreign and other guarantees, if any, is included in the allowance for lending-related commitments. The allowance for lending-related commitments was $100 million at March 31, 2018 and $102 million at Dec. 31, 2017 . Payment/performance risk of SBLCs is monitored using both historical performance and internal ratings criteria. BNY Mellon’s historical experience is that SBLCs typically expire without being funded. SBLCs below investment grade are monitored closely for payment/performance risk. The table below shows SBLCs by investment grade: Standby letters of credit March 31, 2018 Dec. 31, 2017 Investment grade 86 % 84 % Non-investment grade 14 % 16 % A commercial letter of credit is normally a short-term instrument used to finance a commercial contract for the shipment of goods from a seller to a buyer. Although the commercial letter of credit is contingent upon the satisfaction of specified conditions, it represents a credit exposure if the buyer defaults on the underlying transaction. As a result, the total contractual amounts do not necessarily represent future cash requirements. Commercial letters of credit totaled $191 million at March 31, 2018 and $122 million at Dec. 31, 2017 . We expect many of the lending commitments and letters of credit to expire without the need to advance any cash. The revenue associated with guarantees frequently depends on the credit rating of the obligor and the structure of the transaction, including collateral, if any. A securities lending transaction is a fully collateralized transaction in which the owner of a security agrees to lend the security (typically through an agent, in our case, The Bank of New York Mellon), to a borrower, usually a broker-dealer or bank, on an open, overnight or term basis, under the terms of a prearranged contract. We typically lend securities with indemnification against borrower default. We generally require the borrower to provide collateral with a minimum value of 102% of the fair value of the securities borrowed, which is monitored on a daily basis, thus reducing credit risk. Market risk can also arise in securities lending transactions. These risks are controlled through policies limiting the level of risk that can be undertaken. Securities lending transactions are generally entered into only with highly rated counterparties. Securities lending indemnifications were secured by collateral of $483 billion at March 31, 2018 and $451 billion at Dec. 31, 2017 . CIBC Mellon, a joint venture between BNY Mellon and the Canadian Imperial Bank of Commerce (“CIBC”), engages in securities lending activities. CIBC Mellon, BNY Mellon and CIBC jointly and severally indemnify securities lenders against specific types of borrower default. At March 31, 2018 and Dec. 31, 2017 , $70 billion and $69 billion , respectively, of borrowings at CIBC Mellon, for which BNY Mellon acts as agent on behalf of CIBC Mellon clients, were secured by collateral of $74 billion and $73 billion , respectively. If, upon a default, a borrower’s collateral was not sufficient to cover its related obligations, certain losses related to the indemnification could be covered by the indemnitors. Industry concentrations We have significant industry concentrations related to credit exposure at March 31, 2018 . The tables below present our credit exposure in the financial institutions and commercial portfolios. Financial institutions portfolio exposure (in billions) March 31, 2018 Loans Unfunded commitments Total exposure Securities industry $ 3.6 $ 19.2 $ 22.8 Banks 6.9 1.3 8.2 Asset managers 1.3 6.5 7.8 Insurance 0.1 3.5 3.6 Government 0.1 0.9 1.0 Other 0.8 1.3 2.1 Total $ 12.8 $ 32.7 $ 45.5 Commercial portfolio exposure (in billions) March 31, 2018 Loans Unfunded commitments Total exposure Manufacturing $ 1.3 $ 6.1 $ 7.4 Services and other 0.7 5.8 6.5 Energy and utilities 0.6 4.4 5.0 Media and telecom — 1.4 1.4 Total $ 2.6 $ 17.7 $ 20.3 Major concentrations in securities lending are primarily to broker-dealers and are generally collateralized with cash and/or securities. Exposure for certain administrative errors In connection with certain offshore tax-exempt funds that we manage, we may be liable to the funds for certain administrative errors. The errors relate to the resident status of such funds, potentially exposing the Company to a tax liability related to the funds’ earnings. The Company is in discussions with tax authorities regarding the funds. We believe we are appropriately accrued and the additional reasonably possible exposure is not significant. Indemnification arrangements We have provided standard representations for underwriting agreements, acquisition and divestiture agreements, sales of loans and commitments, and other similar types of arrangements and customary indemnification for claims and legal proceedings related to providing financial services that are not otherwise included above. Insurance has been purchased to mitigate certain of these risks. Generally, there are no stated or notional amounts included in these indemnifications and the contingencies triggering the obligation for indemnification are not expected to occur. Furthermore, often counterparties to these transactions provide us with comparable indemnifications. We are unable to develop an estimate of the maximum payout under these indemnifications for several reasons. In addition to the lack of a stated or notional amount in a majority of such indemnifications, we are unable to predict the nature of events that would trigger indemnification or the level of indemnification for a certain event. We believe, however, that the possibility that we will have to make any material payments for these indemnifications is remote. At March 31, 2018 and Dec. 31, 2017 , we have not recorded any material liabilities under these arrangements. Clearing and settlement exchanges We are a noncontrolling equity investor in, and/or member of, several industry clearing or settlement exchanges through which foreign exchange, securities, derivatives or other transactions settle. Certain of these industry clearing and settlement exchanges require their members to guarantee their obligations and liabilities and/or to provide liquidity support in the event other members do not honor their obligations. We believe the likelihood that a clearing or settlement exchange (of which we are a member) would become insolvent is remote. Additionally, certain settlement exchanges have implemented loss allocation policies that enable the exchange to allocate settlement losses to the members of the exchange. It is not possible to quantify such mark-to-market loss until the loss occurs. Any ancillary costs that occur as a result of any mark-to-market loss cannot be quantified. In addition, we also sponsor clients as members on clearing and settlement exchanges and guarantee their obligations. At March 31, 2018 and Dec. 31, 2017 , we have not recorded any material liabilities under these arrangements. Legal proceedings In the ordinary course of business, BNY Mellon and its subsidiaries are routinely named as defendants in or made parties to pending and potential legal actions. We also are subject to governmental and regulatory examinations, information-gathering requests, investigations and proceedings (both formal and informal). Claims for significant monetary damages are often asserted in many of these legal actions, while claims for disgorgement, restitution, penalties and/or other remedial actions or sanctions may be sought in governmental and regulatory matters. It is inherently difficult to predict the eventual outcomes of such matters given their complexity and the particular facts and circumstances at issue in each of these matters. However, on the basis of our current knowledge and understanding, we do not believe that judgments, settlements or orders, if any, arising from these matters (either individually or in the aggregate, after giving effect to applicable reserves and insurance coverage) will have a material adverse effect on the consolidated financial position or liquidity of BNY Mellon, although they could have a material effect on net income in a given period. In view of the inherent unpredictability of outcomes in litigation and governmental and regulatory matters, particularly where (i) the damages sought are substantial or indeterminate, (ii) the proceedings are in the early stages, or (iii) the matters involve novel legal theories or a large number of parties, as a matter of course there is considerable uncertainty surrounding the timing or ultimate resolution of litigation and governmental and regulatory matters, including a possible eventual loss, fine, penalty or business impact, if any, associated with each such matter. In accordance with applicable accounting guidance, BNY Mellon establishes accruals for litigation and governmental and regulatory matters when those matters proceed to a stage where they present loss contingencies that are both probable and reasonably estimable. In such cases, there may be a possible exposure to loss in excess of any amounts accrued. BNY Mellon will continue to monitor such matters for developments that could affect the amount of the accrual, and will adjust the accrual amount as appropriate. If the loss contingency in question is not both probable and reasonably estimable, BNY Mellon does not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. BNY Mellon believes that its accruals for legal proceedings are appropriate and, in the aggregate, are not material to the consolidated financial position of BNY Mellon, although future accruals could have a material effect on net income in a given period. For certain of those matters described here for which a loss contingency may, in the future, be reasonably possible (whether in excess of a related accrued liability or where there is no accrued liability), BNY Mellon is currently unable to estimate a range of reasonably possible loss. For those matters described here where BNY Mellon is able to estimate a reasonably possible loss, the aggregate range of such reasonably possible loss is up to $860 million in excess of the accrued liability (if any) related to those matters. The following describes certain judicial, regulatory and arbitration proceedings involving BNY Mellon: Mortgage-Securitization Trusts Proceedings The Bank of New York Mellon has been named as a defendant in a number of legal actions brought by MBS investors alleging that the trustee has expansive duties under the governing agreements, including the duty to investigate and pursue breach of representation and warranty claims against other parties to the MBS transactions. These actions include a lawsuit brought in New York State court on June 18, 2014, and later re-filed in federal court, by a group of institutional investors who purport to sue on behalf of 249 MBS trusts. Matters Related to R. Allen Stanford In late December 2005, Pershing LLC (“Pershing”) became a clearing firm for Stanford Group Co. (“SGC”), a registered broker-dealer that was part of a group of entities ultimately controlled by R. Allen Stanford (“Stanford”). Stanford International Bank (“SIB”), also controlled by Stanford, issued certificates of deposit (“CDs”). Some investors allegedly wired funds from their SGC accounts to purchase CDs. In 2009, the SEC charged Stanford with operating a Ponzi scheme in connection with the sale of CDs, and SGC was placed into receivership. Alleged purchasers of CDs have filed 15 lawsuits against Pershing that are pending in Texas, including two putative class actions. The purchasers allege that Pershing, as SGC’s clearing firm, assisted Stanford in a fraudulent scheme and assert contractual, statutory and common law claims. In addition, a series of FINRA arbitration proceedings have been initiated by alleged purchasers asserting similar claims. Brazilian Postalis Litigation BNY Mellon Servicos Financeiros DTVM S.A. (“DTVM”), a subsidiary that provides a number of asset services in Brazil, acts as administrator for certain investment funds in which the exclusive investor is a public pension fund for postal workers called Postalis-Instituto de Seguridade Social dos Correios e Telégrafos (“Postalis”). On Aug. 22, 2014, Postalis sued DTVM in Rio de Janeiro, Brazil for losses related to a Postalis investment fund for which DTVM serves as fund administrator. Postalis alleges that DTVM failed to properly perform alleged duties, including duties to conduct due diligence of and exert control over the fund manager, Atlântica Administração de Recursos (“Atlântica”), and Atlântica’s investments. On March 12, 2015, Postalis filed a lawsuit in Rio de Janeiro against DTVM and BNY Mellon Administração de Ativos Ltda. (“Ativos”) alleging failure to properly perform alleged duties relating to another fund of which DTVM is administrator and Ativos is investment manager. On Dec. 14, 2015, Associacão dos Profissionais dos Correiros (“ADCAP”), a Brazilian postal workers association, filed a lawsuit in São Paulo against DTVM and other defendants alleging that DTVM improperly contributed to investment losses in the Postalis portfolio. On March 20, 2017, the lawsuit was dismissed without prejudice, and ADCAP has appealed that decision. On Dec. 17, 2015, Postalis filed three additional lawsuits in Rio de Janeiro against DTVM and Ativos alleging failure to properly perform alleged duties and liabilities for losses with respect to investments in several other funds. On Feb. 4, 2016, Postalis filed another lawsuit in Brasilia against DTVM, Ativos and BNY Mellon Alocação de Patrimônio Ltda., an investment management subsidiary, alleging failure to properly perform duties and liability for losses with respect to investments in various other funds of which the defendants were administrator and/or manager. The lawsuit was transferred to São Paulo and then returned to Brasilia. On Jan. 16, 2018, the Brazilian Federal Prosecutor’s Office filed a civil lawsuit in São Paulo against DTVM alleging liability for Postalis losses based on alleged failures by DTVM to properly perform certain duties while acting as administrator to certain funds in which Postalis invested or controller of Postalis’s own investment portfolio. On April 18, 2018, the court dismissed the lawsuit without prejudice. Depositary Receipt Litigation Between late December 2015 and February 2016, four putative class action lawsuits were filed against BNY Mellon asserting claims relating to BNY Mellon’s foreign exchange pricing when converting dividends and other distributions from non-U.S. companies in its role as depositary bank to Depositary Receipt issuers. The claims are for breach of contract and violations of ERISA. The lawsuits have been consolidated into two suits that are pending in federal court in the Southern District of New York. Brazilian Silverado Litigation DTVM acts as administrator for the Fundo de Investimento em Direitos Creditórios Multisetorial Silverado Maximum (“Silverado Maximum Fund”), which invests in commercial credit receivables. On June 2, 2016, the Silverado Maximum Fund sued DTVM in its capacity as administrator, along with Deutsche Bank S.A. - Banco Alemão in its capacity as custodian and Silverado Gestão e Investimentos Ltda. in its capacity as investment manager. The Fund alleges that each of the defendants failed to fulfill its respective duty, and caused losses to the Fund for which the defendants are jointly and severally liable. Depositary Receipt Pre-Release Inquiry In March 2014, the Staff of the U.S. Securities and Exchange Commission’s Enforcement Division (the “Staff”) commenced an investigation into certain issuers of American Depositary Receipts (“ADRs”), including BNY Mellon, for the period of 2011 to 2015. The Staff has issued several requests to BNY Mellon for information relating to the pre-release of ADRs. In May 2017, BNY Mellon began discussions with the Staff about a possible resolution of the investigation. BNY Mellon has fully cooperated with this matter. |
Lines of business
Lines of business | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Lines of business | Lines of business We have an internal information system that produces performance data along product and service lines for our two principal businesses and the Other segment. Business accounting principles Our business data has been determined on an internal management basis of accounting, rather than the generally accepted accounting principles used for consolidated financial reporting. These measurement principles are designed so that reported results of the businesses will track their economic performance. Business results are subject to reclassification when organizational changes are made. There were no significant organizational changes in the first quarter of 2018 . The results are also subject to refinements in revenue and expense allocation methodologies, which are typically reflected on a prospective basis. The accounting policies of the businesses are the same as those described in Note 1 of the Notes to Consolidated Financial Statements in our 2017 Annual Report. The primary products and services and types of revenue for our two principal businesses and a description of the Other segment are presented below. Investment Services business Line of business Primary products and services Primary types of revenue Asset Servicing Custody, accounting, ETF services, middle-office solutions, transfer agency, services for private equity and real estate funds, foreign exchange, securities lending, liquidity/lending services, prime brokerage and data analytics - Asset servicing fees (includes securities lending revenue) - Foreign exchange revenue - Net interest revenue - Financing-related fees Pershing Clearing and custody, investment, wealth and retirement solutions, technology and enterprise data management, trading services and prime brokerage - Clearing services fees Issuer Services Corporate Trust (trustee, administration and agency services and reporting and transparency) and Depositary Receipts (issuer services and support for brokers and investors) - Issuer services fees - Net interest revenue - Foreign exchange revenue Treasury Services Integrated cash management solutions including payments, foreign exchange, liquidity management, receivables processing and payables management and trade finance and processing - Treasury services fees Clearance and Collateral Management U.S. government clearing, global collateral management and tri-party repo - Asset servicing fees - Net interest revenue Investment Management business Line of business Primary products and services Primary types of revenue Asset Management Diversified investment management strategies and distribution of investment products - Investment management fees Wealth Management Investment management, custody, wealth and estate planning and private banking services - Investment management fees Other segment Description Primary types of revenue Includes leasing portfolio, corporate treasury activities, including our investment securities portfolio, derivatives and other trading activity, corporate and bank-owned life insurance, renewable energy investments and business exits. - Net interest revenue - Investment and other income - Net gain (loss) on securities - Other trading revenue The results of our businesses are presented and analyzed on an internal management reporting basis. • Revenue amounts reflect fee and other revenue generated by each business. Fee and other revenue transferred between businesses under revenue transfer agreements is included within other revenue in each business. • Revenues and expenses associated with specific client bases are included in those businesses. For example, foreign exchange activity associated with clients using custody products is included in Investment Services. • Net interest revenue is allocated to businesses based on the yields on the assets and liabilities generated by each business. We employ a funds transfer pricing system that matches funds with the specific assets and liabilities of each business based on their interest sensitivity and maturity characteristics. • The provision for credit losses associated with the respective credit portfolios is reflected in each business segment. • Incentives expense related to restricted stock is allocated to the businesses. • Support and other indirect expenses are allocated to businesses based on internally developed methodologies. • Recurring FDIC expense is allocated to the businesses based on average deposits generated within each business. • Litigation expense is generally recorded in the business in which the charge occurs. • Management of the investment securities portfolio is a shared service contained in the Other segment. As a result, gains and losses associated with the valuation of the securities portfolio are included in the Other segment. • Client deposits serve as the primary funding source for our investment securities portfolio. We typically allocate all interest revenue to the businesses generating the deposits. Accordingly, accretion related to the portion of the investment securities portfolio restructured in 2009 has been included in the results of the businesses. • Balance sheet assets and liabilities and their related income or expense are specifically assigned to each business. Businesses with a net liability position have been allocated assets. • Goodwill and intangible assets are reflected within individual businesses. The following consolidating schedules present the contribution of our businesses to our overall profitability. For the quarter ended March 31, 2018 Investment Investment Other Consolidated (dollars in millions) Total fee and other revenue $ 2,250 $ 1,012 (a) $ 8 $ 3,270 (a) Net interest revenue (expense) 844 76 (1 ) 919 Total revenue 3,094 1,088 (a) 7 4,189 (a) Provision for credit losses (7 ) 2 — (5 ) Noninterest expense 1,949 705 87 2,741 (b) Income (loss) before taxes $ 1,152 $ 381 (a) $ (80 ) $ 1,453 (a)(b) Pre-tax operating margin (c) 37 % 35 % N/M 35 % Average assets $ 278,095 $ 31,963 $ 48,117 $ 358,175 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of less than $1 million , representing $11 million of losses and a loss attributable to noncontrolling interests of $11 million . Income before taxes is net of a loss attributable to noncontrolling interests of $11 million . (b) Noninterest expense includes income attributable to noncontrolling interests of $2 million related to other consolidated subsidiaries. (c) Income before taxes divided by total revenue. N/M - Not meaningful. For the quarter ended Dec. 31, 2017 Investment Investment Other Consolidated (dollars in millions) Total fee and other revenue $ 2,141 $ 974 (a) $ (247 ) $ 2,868 (a) Net interest revenue (expense) 813 74 (36 ) 851 Total revenue (loss) 2,954 1,048 (a) (283 ) 3,719 (a) Provision for credit losses (2 ) 1 (5 ) (6 ) Noninterest expense 2,097 771 135 3,003 (b) Income (loss) before taxes $ 859 $ 276 (a) $ (413 ) $ 722 (a)(b) Pre-tax operating margin (c) 29 % 26 % N/M 20 % Average assets $ 260,494 $ 31,681 $ 58,611 $ 350,786 (a) Both total fee and other revenue and total revenue (loss) include net income from consolidated investment management funds of $8 million , representing $17 million of income and noncontrolling interests of $9 million . Income before taxes is net of noncontrolling interests of $9 million . (b) Noninterest expense includes a loss attributable to noncontrolling interests of $3 million related to other consolidated subsidiaries. (c) Income before taxes divided by total revenue. N/M - Not meaningful. For the quarter ended March 31, 2017 Investment Investment Other Consolidated (dollars in millions) Total fee and other revenue $ 2,084 $ 877 (a) $ 72 $ 3,033 (a) Net interest revenue (expense) 707 86 (1 ) 792 Total revenue 2,791 963 (a) 71 3,825 (a) Provision for credit losses — 3 (8 ) (5 ) Noninterest expense 1,849 683 107 2,639 (b) Income (loss) before taxes $ 942 $ 277 (a) $ (28 ) $ 1,191 (a)(b) Pre-tax operating margin (c) 34 % 29 % N/M 31 % Average assets $ 251,027 $ 31,067 $ 54,106 $ 336,200 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of $15 million , representing $33 million of income and noncontrolling interests of $18 million . Income before taxes is net of noncontrolling interests of $18 million . (b) Noninterest expense includes a loss attributable to noncontrolling interests of $3 million related to other consolidated subsidiaries. (c) Income before taxes divided by total revenue. N/M - Not meaningful. |
Supplemental information to the
Supplemental information to the Consolidated Statement of Cash Flows | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental information to the Consolidated Statement of Cash Flows | Supplemental information to the Consolidated Statement of Cash Flows Non-cash investing and financing transactions that, appropriately, are not reflected in the consolidated statement of cash flows are listed below. Non-cash investing and financing transactions Three months ended March 31, (in millions) 2018 2017 Transfers from loans to other assets for other real estate owned $ 1 $ 1 Change in assets of consolidated VIEs 125 204 Change in liabilities of consolidated VIEs 9 106 Change in nonredeemable noncontrolling interests of consolidated investment management funds 104 84 Securities purchased not settled 414 580 Securities sold not settled 30 81 Available-for-sale securities transferred to trading assets 963 — Held-to-maturity securities transferred to available-for-sale 1,087 — Premises and equipment/capitalized software funded by capital lease obligations 15 1 |
Basis of presentation (Policies
Basis of presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accounting and financial reporting policies of BNY Mellon, a global financial services company, conform to U.S. generally accepted accounting principles (“GAAP”) and prevailing industry practices. The accompanying consolidated financial statements are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the periods presented have been made. These financial statements should be read in conjunction with BNY Mellon’s Annual Report on Form 10-K for the year ended Dec. 31, 2017 . Certain immaterial reclassifications have been made to prior periods to place them on a basis comparable with current period presentation. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates based upon assumptions about future economic and market conditions which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial condition. Amounts subject to estimates are items such as allowance for loan losses and lending-related commitments, fair value of financial instruments and derivatives, other-than-temporary impairment, goodwill and other intangibles and pension accounting. Among other effects, such changes in estimates could result in future impairments of investment securities, goodwill and intangible assets and establishment of allowances for loan losses and lending-related commitments as well as changes in pension and post-retirement expense. |
New accounting guidance | Accounting changes and new accounting guidance The following accounting changes and new accounting guidance were adopted in the first quarter of 2018. ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued an ASU, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities . The objective of this ASU is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities and to simplify the application of hedge accounting guidance. The most significant impact of the new guidance to the Company relates to the new accounting alternatives for fair value hedges of interest rate risk, specifically, the ability to hedge only the benchmark component of the contractual cash flows and partial-term hedging. The guidance also changed presentation and disclosure requirements and made changes to how the shortcut method is applied, which may result in the Company using that method going forward for certain hedging relationships. BNY Mellon elected to early adopt this ASU on Jan. 31, 2018, which is the “as of” date for which the Company was permitted to make certain elections and the measurement date for recording the adoption impact for certain hedge modifications. As part of the adoption, we elected to reclassify approximately $1.1 billion of debt securities from held-to-maturity to available-for-sale which resulted in a decrease of $47 million pre-tax to accumulated other comprehensive income. The Company also elected to modify certain hedge relationships as of the adoption date primarily to utilize the benchmark component method of measuring hedge effectiveness, as such method is deemed to more closely match risk management objectives with accounting results. The Company recognized a $27 million after-tax increase in retained earnings as of Jan. 1, 2018 associated with the adoption impact of these hedge modifications. ASU 2017-07, Compensation-Retirement Benefits - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued an ASU, Compensation-Retirement Benefits - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The ASU requires the disaggregation of the service cost component from the other components of the net benefit cost in the income statement. The ASU also permits only the service cost component of net benefit cost to be eligible for capitalization. BNY Mellon adopted this ASU in the first quarter of 2018, and applied the guidance retrospectively for the presentation of the service cost component and the other components in the income statement, and prospectively for the capitalization of the service cost component in assets. The adoption of this standard increased staff expense and decreased other expense by $14 million for the fourth quarter of 2017 and $16 million for the first quarter of 2017. ASU 2016-18, Statement of Cash Flows – Restricted Cash In November 2016, the FASB issued an ASU, Statement of Cash Flows – Restricted Cash . This ASU provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. Restricted cash consists of excess client funds held by our broker-dealer business and totaled $1.2 billion at March 31, 2018 and $2.9 billion at March 31, 2017. Restricted cash is included in interest-bearing deposits with banks on the consolidated balance sheet and with cash and due from banks when reconciling the beginning and end-of-period balances on the consolidated cash flow statement. We adopted the guidance in this ASU retrospectively. As a result, the change in interest-bearing deposits with banks, which is included in investing activities on the consolidated statement of cash flows, was restated to reflect the decrease in restricted cash of $477 million for the three months ended March 31, 2017. The change in restricted cash was a $515 million decrease for the three months ended March 31, 2018. ASU 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued an ASU, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments . This ASU provides guidance on eight specific cash flow presentation issues. The most significant impact for BNY Mellon relates to distributions received from equity method investees. For equity method investments, BNY Mellon elected to report distributions received from equity method investees using the cumulative earnings approach. Distributions received are considered returns on investment and classified as cash inflows from operating activities on the consolidated cash flows statement. To the extent the returns on investment exceeded the cumulative equity in earnings recognized; the excess would be considered a return of investment and classified as cash inflows from investing activities on the consolidated cash flows statement. We adopted the guidance in this ASU retrospectively. As a result, the change in accruals and other, net which is included in operating activities on the consolidated cash flows statement, was restated to reflect distributions received of $9 million for the three months ended March 31, 2017. These distributions were previously included in other, net in investing activities on the consolidated cash flows statement. Distributions received for the three months ended March 31, 2018 were $9 million . The remaining seven specific cash flow presentation issues do not materially impact BNY Mellon. ASU 2014-09, Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . This ASU, as amended, provides guidance on the recognition of revenue related to the transfer of promised goods or services to customers and guidance on accounting for certain contract costs. The standard provides a single revenue model to be applied by reporting companies under U.S. GAAP and supersedes most existing revenue recognition guidance. The Company adopted the guidance on Jan. 1, 2018 using the cumulative effect transition method applied to contracts not completed as of Dec. 31, 2017, which resulted in a $55 million after-tax reduction to retained earnings. The comparative financial information for 2017 has not been restated and continues to be reported under the accounting standards in effect for that period. Although the impact of the adoption of this ASU was not material, the most significant changes and quantitative impact of the changes are disclosed below. Payments to customers The timing of recognizing the reduction in revenue for certain payments made to depositary receipts customers has changed. Prior to adoption, annual payments to customers were capitalized and amortized as contra revenue over the remaining contract period, subject to impairment reviews. Under the new guidance, annual payments are recorded as a reduction in revenue in proportion to the expected annual revenue generated from the related customer contract. Costs to obtain a customer contract Prior to adoption, costs to obtain a customer contract, primarily sales incentives, were expensed as incurred. Under the new guidance, an asset is recognized for the incremental sales incentives that are considered costs of obtaining a contract with a customer, if those costs are expected to be recovered. The table below presents the cumulative effect of the adoption of the new guidance on the consolidated balance sheet as of Dec. 31, 2017 . Impact to the consolidated balance sheet Dec. 31, 2017 Impact of adoption Jan. 1, 2018 (in millions) Assets Other assets $ 23,029 $ (9 ) $ 23,020 Liabilities Accrued tax and other expenses $ 6,225 $ (18 ) $ 6,207 Other liabilities 6,050 64 6,114 Equity Retained earnings $ 25,635 $ (55 ) $ 25,580 The impact of the new guidance on the consolidated income statement for the first quarter of 2018 and consolidated balance sheet as of March 31, 2018 was de minimis. See Note 8 for additional revenue and contract costs disclosures. ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities . The ASU requires investments in equity securities that do not result in consolidation and are not accounted for under the equity method to be measured at fair value with changes in the fair value recognized through net income, unless one of two available exceptions apply. The first exception, a scope exception, allows Federal Reserve Bank stock, FHLB stock and exchange memberships to remain accounted for at cost, less impairment. The second practicability exception is an election available for equity investments that do not have readily determinable fair values. For certain investments where the Company has chosen the practicability exception, such investments are accounted for at cost adjusted for impairment, if any, plus or minus observable price changes. The Company adopted this guidance in the first quarter of 2018 using the cumulative effect method of adoption, with a de minimis impact to retained earnings. As part of the adoption, we reclassified money market fund investments of approximately $1 billion to trading assets, primarily from available-for-sale securities. As of March 31, 2018, we have $47 million of non-readily marketable equity securities, where we are utilizing the practicability exception, and carrying such investments at cost, plus or minus observed changes in fair value. The upward adjustments recognized on these equity securities were $20 million in the first quarter of 2018 resulting from activity that resulted in observable price changes. We also have equity securities carried at fair value at March 31, 2018. The net gain recognized in the first quarter of 2018 was $2 million , comprised of $9 million of realized gains on equity securities sold in the first quarter of 2018 and $7 million on unrealized losses recognized on equity securities held at March 31, 2018. |
Other-than-temporary impairment | Other-than-temporary impairment We conduct periodic reviews of all securities to determine whether OTTI has occurred. Such reviews may incorporate the use of economic models. Various inputs to the economic models are used to determine if an unrealized loss on securities is other-than-temporary. For example, the most significant inputs related to non-agency RMBS are: • Default rate - the number of mortgage loans expected to go into default over the life of the transaction, which is driven by the roll rate of loans in each performance bucket that will ultimately migrate to default; and • Severity - the loss expected to be realized when a loan defaults. To determine if an unrealized loss is other-than-temporary, we project total estimated defaults of the underlying assets (mortgages) and multiply that calculated amount by an estimate of realizable value upon sale of these assets in the marketplace (severity) in order to determine the projected collateral loss. In determining estimated default rate and severity assumptions, we review the performance of the underlying securities, industry studies and market forecasts, as well as our view of the economic outlook affecting collateral. We also evaluate the current credit enhancement underlying the bond to determine the impact on cash flows. If we determine that a given security will be subject to a write-down or loss, we record the expected credit loss as a charge to earnings. |
Fair value measurement | Fair value measurement Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. A three-level hierarchy for fair value measurements is utilized based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. BNY Mellon’s own creditworthiness is considered when valuing liabilities. See Note 18 of the Notes to Consolidated Financial Statements to our 2017 Annual Report for information on how we determine fair value and the fair value hierarchy. The following tables present the financial instruments carried at fair value at March 31, 2018 and Dec. 31, 2017 , by caption on the consolidated balance sheet and by the three-level valuation hierarchy. We have included credit ratings information in certain of the tables because the information indicates the degree of credit risk to which we are exposed, and significant changes in ratings classifications could result in increased risk for us. |
Accounting changes and new ac32
Accounting changes and new accounting guidance Accounting change and new accounting guidance (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The table below presents the cumulative effect of the adoption of the new guidance on the consolidated balance sheet as of Dec. 31, 2017 . Impact to the consolidated balance sheet Dec. 31, 2017 Impact of adoption Jan. 1, 2018 (in millions) Assets Other assets $ 23,029 $ (9 ) $ 23,020 Liabilities Accrued tax and other expenses $ 6,225 $ (18 ) $ 6,207 Other liabilities 6,050 64 6,114 Equity Retained earnings $ 25,635 $ (55 ) $ 25,580 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Securities [Abstract] | |
Amortized Cost and Fair Values of Securities | The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of securities at March 31, 2018 and Dec. 31, 2017 , respectively. Securities at March 31, 2018 Gross unrealized Amortized cost Fair value (in millions) Gains Losses Available-for-sale: U.S. Treasury $ 17,108 $ 120 $ 274 $ 16,954 U.S. government agencies 1,179 — 25 1,154 State and political subdivisions 2,739 22 35 2,726 Agency RMBS 24,351 95 410 24,036 Non-agency RMBS (a) 1,175 303 2 1,476 Other RMBS 149 3 6 146 Commercial MBS 1,391 2 20 1,373 Agency commercial MBS 9,659 14 161 9,512 CLOs 3,121 10 2 3,129 Other asset-backed securities 277 1 — 278 Foreign covered bonds 2,722 15 18 2,719 Corporate bonds 1,236 11 25 1,222 Sovereign debt/sovereign guaranteed 13,100 164 30 13,234 Other debt securities 3,890 5 24 3,871 Total securities available-for-sale (b) $ 82,097 $ 765 $ 1,032 $ 81,830 Held-to-maturity: U.S. Treasury $ 6,598 $ 3 $ 102 $ 6,499 U.S. government agencies 1,503 — 17 1,486 State and political subdivisions 17 — 1 16 Agency RMBS 25,762 10 715 25,057 Non-agency RMBS 54 4 — 58 Other RMBS 65 2 — 67 Commercial MBS 5 — — 5 Agency commercial MBS 1,327 — 34 1,293 Foreign covered bonds 86 1 — 87 Sovereign debt/sovereign guaranteed 1,513 25 — 1,538 Other debt securities 29 — — 29 Total securities held-to-maturity $ 36,959 $ 45 $ 869 $ 36,135 Total securities $ 119,056 $ 810 $ 1,901 $ 117,965 (a) Includes $1,019 million that were included in the former Grantor Trust. (b) Includes gross unrealized gains of $47 million and gross unrealized losses of $107 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized gains and losses are primarily related to Agency RMBS and will be amortized into net interest revenue over the contractual lives of the securities. Securities at Dec. 31, 2017 Gross unrealized Amortized cost Fair value (in millions) Gains Losses Available-for-sale: U.S. Treasury $ 15,159 $ 264 $ 160 $ 15,263 U.S. government agencies 917 1 10 908 State and political subdivisions 2,949 31 23 2,957 Agency RMBS 24,002 108 291 23,819 Non-agency RMBS (a) 1,265 317 4 1,578 Other RMBS 152 3 6 149 Commercial MBS 1,360 6 6 1,360 Agency commercial MBS 8,793 36 67 8,762 CLOs 2,898 12 1 2,909 Other asset-backed securities 1,040 3 — 1,043 Foreign covered bonds 2,520 18 9 2,529 Corporate bonds 1,249 17 11 1,255 Sovereign debt/sovereign guaranteed 12,405 175 23 12,557 Other debt securities 3,494 9 12 3,491 Money market funds 963 — — 963 Total securities available-for-sale (b) $ 79,166 $ 1,000 $ 623 $ 79,543 Held-to-maturity: U.S. Treasury $ 9,792 $ 6 $ 56 $ 9,742 U.S. government agencies 1,653 — 12 1,641 State and political subdivisions 17 — 1 16 Agency RMBS 26,208 51 332 25,927 Non-agency RMBS 57 5 — 62 Other RMBS 65 — 1 64 Commercial MBS 6 — — 6 Agency commercial MBS 1,324 2 9 1,317 Foreign covered bonds 84 2 — 86 Sovereign debt/sovereign guaranteed 1,593 30 — 1,623 Other debt securities 28 — — 28 Total securities held-to-maturity $ 40,827 $ 96 $ 411 $ 40,512 Total securities $ 119,993 $ 1,096 $ 1,034 $ 120,055 (a) Includes $1,091 million that were included in the former Grantor Trust. (b) Includes gross unrealized gains of $50 million and gross unrealized losses of $144 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized gains and losses are primarily related to Agency RMBS and will be amortized into net interest revenue over the contractual lives of the securities. |
Schedule of Realized Gain (Loss) | The following table presents the realized gains, losses and impairments, on a gross basis. Net securities (losses) gains (in millions) 1Q18 4Q17 1Q17 Realized gross gains $ 2 $ 13 $ 11 Realized gross losses (51 ) (38 ) — Recognized gross impairments — (1 ) (1 ) Total net securities (losses) gains $ (49 ) $ (26 ) $ 10 |
Aggregate Fair Value of Investments with Continuous Unrealized Loss Position | The following tables show the aggregate fair value of investments with a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or more at March 31, 2018 and Dec. 31, 2017 , respectively. Temporarily impaired securities at March 31, 2018 Less than 12 months 12 months or more Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses (in millions) Available-for-sale: U.S. Treasury $ 9,344 $ 149 $ 2,686 $ 125 $ 12,030 $ 274 U.S. government agencies 924 20 120 5 1,044 25 State and political subdivisions 740 7 475 28 1,215 35 Agency RMBS 10,067 175 5,470 235 15,537 410 Non-agency RMBS (a) 20 — 134 2 154 2 Other RMBS 71 3 37 3 108 6 Commercial MBS 655 15 120 5 775 20 Agency commercial MBS 5,107 105 1,269 56 6,376 161 CLOs 375 2 45 — 420 2 Foreign covered bonds 1,261 15 136 3 1,397 18 Corporate bonds 753 23 49 2 802 25 Sovereign debt/sovereign guaranteed 2,322 22 403 8 2,725 30 Other debt securities 2,051 18 259 6 2,310 24 Total securities available-for-sale (b) $ 33,690 $ 554 $ 11,203 $ 478 $ 44,893 $ 1,032 Held-to-maturity: U.S. Treasury $ 3,629 $ 66 $ 2,587 $ 36 $ 6,216 $ 102 U.S. government agencies 556 9 930 8 1,486 17 State and political subdivisions — — 4 1 4 1 Agency RMBS 15,166 352 9,201 363 24,367 715 Agency commercial MBS 1,206 30 58 4 1,264 34 Total securities held-to-maturity $ 20,557 $ 457 $ 12,780 $ 412 $ 33,337 $ 869 Total temporarily impaired securities $ 54,247 $ 1,011 $ 23,983 $ 890 $ 78,230 $ 1,901 (a) Includes $11 million with an unrealized loss of less than $1 million for less than 12 months and $9 million with an unrealized loss for 12 months or more of less than $1 million that were included in the former Grantor Trust. (b) Includes gross unrealized losses for 12 months or more of $107 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized losses are primarily related to Agency RMBS and will be amortized into net interest revenue over the contractual lives of the securities. There were no gross unrealized losses for less than 12 months. Temporarily impaired securities at Dec. 31, 2017 Less than 12 months 12 months or more Total (in millions) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale: U.S. Treasury $ 7,429 $ 131 $ 2,175 $ 29 $ 9,604 $ 160 U.S. government agencies 588 6 160 4 748 10 State and political subdivisions 732 3 518 20 1,250 23 Agency RMBS 8,567 66 5,834 225 14,401 291 Non-agency RMBS (a) 20 — 149 4 169 4 Other RMBS 71 4 45 2 116 6 Commercial MBS 476 3 122 3 598 6 Agency commercial MBS 3,077 28 1,332 39 4,409 67 CLOs 260 1 — — 260 1 Foreign covered bonds 953 7 116 2 1,069 9 Corporate bonds 274 2 288 9 562 11 Sovereign debt/sovereign guaranteed 1,880 12 559 11 2,439 23 Other debt securities 1,855 7 368 5 2,223 12 Total securities available-for-sale (b) $ 26,182 $ 270 $ 11,666 $ 353 $ 37,848 $ 623 Held-to-maturity: U.S. Treasury $ 6,389 $ 41 $ 2,909 $ 15 $ 9,298 $ 56 U.S. government agencies 791 4 850 8 1,641 12 State and political subdivisions — — 4 1 4 1 Agency RMBS 9,458 81 12,305 251 21,763 332 Other RMBS — — 50 1 50 1 Agency commercial MBS 737 7 60 2 797 9 Total securities held-to-maturity $ 17,375 $ 133 $ 16,178 $ 278 $ 33,553 $ 411 Total temporarily impaired securities $ 43,557 $ 403 $ 27,844 $ 631 $ 71,401 $ 1,034 (a) Includes $7 million with an unrealized loss of less than $1 million for less than 12 months and $12 million with an unrealized loss of $1 million for 12 months or more that were included in the former Grantor Trust. (b) Includes gross unrealized losses for 12 months or more of $144 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized losses are primarily related to Agency RMBS and will be amortized into net interest revenue over the contractual lives of the securities. There were no gross unrealized losses for less than 12 months. |
Maturity Distribution by Carrying Amount and Yield (on Tax Equivalent Basis) of Investment Securities Portfolio | The following table shows the maturity distribution by carrying amount and yield (on a tax equivalent basis) of our investment securities portfolio. Maturity distribution and yield on investment securities at March 31, 2018 U.S. Treasury U.S. government agencies State and political subdivisions Other bonds, notes and debentures Mortgage/ asset-backed (dollars in millions) Amount Yield (a) Amount Yield (a) Amount Yield (a) Amount Yield (a) Amount Yield (a) Total Securities available-for-sale: One year or less $ 5,093 1.67 % $ 16 2.16 % $ 380 2.04 % $ 5,103 1.12 % $ — — % $ 10,592 Over 1 through 5 years 5,851 1.89 389 2.09 1,445 2.88 13,118 1.05 — — 20,803 Over 5 through 10 years 2,606 2.07 749 2.59 709 2.69 2,616 0.80 — — 6,680 Over 10 years 3,404 3.11 — — 192 2.67 209 1.66 — — 3,805 Mortgage-backed securities — — — — — — — — 36,543 3.00 36,543 Asset-backed securities — — — — — — — — 3,407 2.75 3,407 Total $ 16,954 2.10 % $ 1,154 2.41 % $ 2,726 2.70 % $ 21,046 1.04 % $ 39,950 2.98 % $ 81,830 Securities held-to-maturity: One year or less $ 1,971 1.10 % $ 506 1.13 % $ — — % $ 607 0.62 % $ — — % $ 3,084 Over 1 through 5 years 3,918 1.78 997 1.67 2 5.68 469 0.46 — — 5,386 Over 5 through 10 years 709 1.79 — — 1 5.71 552 0.85 — — 1,262 Over 10 years — — — — 14 4.76 — — — — 14 Mortgage-backed securities — — — — — — — — 27,213 2.82 27,213 Total $ 6,598 1.57 % $ 1,503 1.48 % $ 17 4.94 % $ 1,628 0.65 % $ 27,213 2.82 % $ 36,959 (a) Yields are based upon the amortized cost of securities. |
Projected Weighted-Average Default Rates and Loss Severities | The table below shows the projected weighted-average default rates and loss severities for the 2007, 2006 and late 2005 non-agency RMBS and the securities previously held in the Grantor Trust that we established in connection with the restructuring of our investment securities portfolio in 2009, at March 31, 2018 and Dec. 31, 2017 . See Note 15 for carrying values of these securities. Projected weighted-average default rates and loss severities March 31, 2018 Dec. 31, 2017 Default rate Severity Default rate Severity Alt-A 22 % 52 % 22 % 53 % Subprime 38 % 66 % 38 % 66 % Prime 13 % 39 % 13 % 39 % |
Pre-Tax Securities Gains (Losses) by Type | The following table presents pre-tax net securities (losses) gains by type. Net securities (losses) gains (in millions) 1Q18 4Q17 1Q17 Agency RMBS $ (42 ) $ (17 ) $ 1 U.S. Treasury (4 ) (16 ) — Non-agency RMBS — 6 (1 ) Other (3 ) 1 10 Total net securities (losses) gains $ (49 ) $ (26 ) $ 10 |
Debt Securities Credit Losses Roll Forward Recorded in Earnings | The following table reflects investment securities credit losses recorded in earnings. The beginning balance represents the credit loss component for which OTTI occurred on debt securities in prior periods. The additions represent the first time a debt security was credit impaired or when subsequent credit impairments have occurred. The deductions represent credit losses on securities that have been sold, are required to be sold, or for which it is our intention to sell. Debt securities credit loss roll forward (in millions) 1Q18 1Q17 Beginning balance as of Jan. 1 $ 84 $ 88 Add: Initial OTTI credit losses — — Subsequent OTTI credit losses — 1 Less: Realized losses for securities sold 4 — Ending balance as of March 31 $ 80 $ 89 |
Loans and asset quality (Tables
Loans and asset quality (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio and Industry Concentrations of Credit Risk | The table below provides the details of our loan portfolio and industry concentrations of credit risk at March 31, 2018 and Dec. 31, 2017 . Loans March 31, 2018 Dec. 31, 2017 (in millions) Domestic: Commercial $ 2,284 $ 2,744 Commercial real estate 4,888 4,900 Financial institutions 5,782 5,568 Lease financings 749 772 Wealth management loans and mortgages 16,288 16,420 Other residential mortgages 680 708 Overdrafts 785 963 Other 1,089 1,131 Margin loans 14,993 15,689 Total domestic 47,538 48,895 Foreign: Commercial 325 167 Commercial real estate 5 — Financial institutions 7,011 7,483 Lease financings 533 527 Wealth management loans and mortgages 113 108 Other (primarily overdrafts) 5,138 4,264 Margin loans 146 96 Total foreign 13,271 12,645 Total loans (a) $ 60,809 $ 61,540 (a) Net of unearned income of $382 million at March 31, 2018 and $394 million at Dec. 31, 2017 primarily related to domestic and foreign lease financings. |
Summary of Transactions in the Allowance for Credit Losses | Transactions in the allowance for credit losses are summarized as follows. Allowance for credit losses activity for the quarter ended March 31, 2018 Wealth management loans and mortgages Other residential mortgages (in millions) Commercial Commercial real estate Financial institutions Lease financings All other Foreign Total Beginning balance $ 77 $ 76 $ 23 $ 8 $ 22 $ 20 $ — $ 35 $ 261 Charge-offs — — — — — — — — — Recoveries — — — — — — — — — Net recoveries — — — — — — — — — Provision (2 ) (1 ) (1 ) (1 ) 1 (1 ) — — (5 ) Ending balance $ 75 $ 75 $ 22 $ 7 $ 23 $ 19 $ — $ 35 $ 256 Allowance for: Loan losses $ 23 $ 58 $ 8 $ 7 $ 19 $ 19 $ — $ 22 $ 156 Lending-related commitments 52 17 14 — 4 — — 13 100 Individually evaluated for impairment: Loan balance $ — $ — $ 1 $ — $ 4 $ — $ — $ — $ 5 Allowance for loan losses — — — — 1 — — — 1 Collectively evaluated for impairment: Loan balance $ 2,284 $ 4,888 $ 5,781 $ 749 $ 16,284 $ 680 $ 16,867 (a) $ 13,271 $ 60,804 Allowance for loan losses 23 58 8 7 18 19 — 22 155 (a) Includes $785 million of domestic overdrafts, $14,993 million of margin loans and $1,089 million of other loans at March 31, 2018 . Allowance for credit losses activity for the quarter ended Dec. 31, 2017 Wealth management loans and mortgages Other residential mortgages (in millions) Commercial Commercial real estate Financial institutions Lease financings All other Foreign Total Beginning balance $ 81 $ 75 $ 23 $ 9 $ 21 $ 21 $ — $ 35 $ 265 Charge-offs — — — — — — — — — Recoveries — — — — — 2 — — 2 Net recoveries — — — — — 2 — — 2 Provision (4 ) 1 — (1 ) 1 (3 ) — — (6 ) Ending balance $ 77 $ 76 $ 23 $ 8 $ 22 $ 20 $ — $ 35 $ 261 Allowance for: Loan losses $ 24 $ 58 $ 7 $ 8 $ 18 $ 20 $ — $ 24 $ 159 Lending-related commitments 53 18 16 — 4 — — 11 102 Individually evaluated for impairment: Loan balance $ — $ — $ 1 $ — $ 5 $ — $ — $ — $ 6 Allowance for loan losses — — — — 1 — — — 1 Collectively evaluated for impairment: Loan balance $ 2,744 $ 4,900 $ 5,567 $ 772 $ 16,415 $ 708 $ 17,783 (a) $ 12,645 $ 61,534 Allowance for loan losses 24 58 7 8 17 20 — 24 158 (a) Includes $963 million of domestic overdrafts, $15,689 million of margin loans and $1,131 million of other loans at Dec. 31, 2017 . Allowance for credit losses activity for the quarter ended March 31, 2017 Wealth management loans and mortgages Other residential mortgages All other Foreign Total (in millions) Commercial Commercial real estate Financial institutions Lease financings Beginning balance $ 82 $ 73 $ 26 $ 13 $ 23 $ 28 $ — $ 36 $ 281 Charge-offs — — — — — (1 ) — — (1 ) Recoveries — — — — — 1 — — 1 Net (charge-offs) recoveries — — — — — — — — — Provision — — (3 ) (3 ) 3 (3 ) — 1 (5 ) Ending balance $ 82 $ 73 $ 23 $ 10 $ 26 $ 25 $ — $ 37 $ 276 Allowance for: Loan losses $ 24 $ 54 $ 5 $ 10 $ 22 $ 25 $ — $ 24 $ 164 Lending-related commitments 58 19 18 — 4 — — 13 112 Individually evaluated for impairment: Loan balance $ — $ — $ — $ — $ 5 $ — $ — $ — $ 5 Allowance for loan losses — — — — 3 — — — 3 Collectively evaluated for impairment: Loan balance $ 2,543 $ 4,698 $ 5,387 $ 846 $ 15,904 $ 817 $ 17,873 (a) $ 12,795 $ 60,863 Allowance for loan losses 24 54 5 10 19 25 — 24 161 (a) Includes $673 million of domestic overdrafts, $16,081 million of margin loans and $1,119 million of other loans at March 31, 2017 . |
Distribution of Nonperforming Assets | The table below presents our nonperforming assets. Nonperforming assets (in millions) March 31, 2018 Dec. 31, 2017 Nonperforming loans: Other residential mortgages $ 74 $ 78 Wealth management loans and mortgages 7 7 Commercial real estate — 1 Total nonperforming loans 81 86 Other assets owned 4 4 Total nonperforming assets $ 85 $ 90 |
Information about Past Due Loans | The table below presents our past due loans. Past due loans and still accruing interest March 31, 2018 Dec. 31, 2017 Days past due Total past due Days past due Total past due (in millions) 30-59 60-89 ≥90 30-59 60-89 ≥90 Commercial real estate $ 62 $ — $ — $ 62 $ 44 $ — $ — $ 44 Wealth management loans and mortgages 36 1 — 37 39 5 — 44 Other residential mortgages 13 5 5 23 18 5 5 28 Financial institutions — — — — 1 — — 1 Total past due loans $ 111 $ 6 $ 5 $ 122 $ 102 $ 10 $ 5 $ 117 |
Credit Quality Indicators - Commercial Portfolio - Credit Risk Profile by Creditworthiness Category | The following tables present information about credit quality indicators. Commercial loan portfolio Commercial loan portfolio – Credit risk profile by creditworthiness category Commercial Commercial real estate Financial institutions March 31, Dec. 31, 2017 March 31, Dec. 31, 2017 March 31, Dec. 31, 2017 (in millions) Investment grade $ 2,427 $ 2,685 $ 4,203 $ 4,277 $ 9,716 $ 10,021 Non-investment grade 182 226 690 623 3,077 3,030 Total $ 2,609 $ 2,911 $ 4,893 $ 4,900 $ 12,793 $ 13,051 |
Credit Quality Indicators - Wealth Management Loans and Mortgages - Credit Risk Profile by Internally Assigned Grade | Wealth management loans and mortgages Wealth management loans and mortgages – Credit risk profile by internally assigned grade (in millions) March 31, Dec. 31, 2017 Wealth management loans: Investment grade $ 6,933 $ 7,042 Non-investment grade 117 185 Wealth management mortgages 9,351 9,301 Total $ 16,401 $ 16,528 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Breakdown of Goodwill by Business | The tables below provide a breakdown of goodwill by business. Goodwill by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2017 $ 8,389 $ 9,128 $ 47 $ 17,564 Disposition — (52 ) — (52 ) Foreign currency translation 31 53 — 84 Balance at March 31, 2018 $ 8,420 $ 9,129 $ 47 $ 17,596 Goodwill by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2016 $ 8,269 $ 9,000 $ 47 $ 17,316 Foreign currency translation 18 21 — 39 Balance at March 31, 2017 $ 8,287 $ 9,021 $ 47 $ 17,355 |
Breakdown of Intangible Assets by Business | The tables below provide a breakdown of intangible assets by business. Intangible assets – net carrying amount by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2017 $ 888 $ 1,674 $ 849 $ 3,411 Amortization (36 ) (13 ) — (49 ) Foreign currency translation — 8 — 8 Balance at March 31, 2018 $ 852 $ 1,669 $ 849 $ 3,370 Intangible assets – net carrying amount by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2016 $ 1,032 $ 1,717 $ 849 $ 3,598 Amortization (37 ) (15 ) — (52 ) Foreign currency translation — 3 — 3 Balance at March 31, 2017 $ 995 $ 1,705 $ 849 $ 3,549 |
Breakdown of Intangible Assets by Type | The table below provides a breakdown of intangible assets by type. Intangible assets March 31, 2018 Dec. 31, 2017 (in millions) Gross carrying amount Accumulated amortization Net carrying amount Remaining weighted- average amortization period Gross Accumulated Net carrying amount Subject to amortization: (a) Customer contracts—Investment Services $ 2,263 $ (1,781 ) $ 482 10 years $ 2,260 $ (1,744 ) $ 516 Customer relationships—Investment Management 1,274 (1,038 ) 236 11 years 1,262 (1,015 ) 247 Other 41 (24 ) 17 4 years 42 (23 ) 19 Total subject to amortization 3,578 (2,843 ) 735 10 years 3,564 (2,782 ) 782 Not subject to amortization: (b) Tradenames 1,335 N/A 1,335 N/A 1,334 N/A 1,334 Customer relationships 1,300 N/A 1,300 N/A 1,295 N/A 1,295 Total not subject to amortization 2,635 N/A 2,635 N/A 2,629 N/A 2,629 Total intangible assets $ 6,213 $ (2,843 ) $ 3,370 N/A $ 6,193 $ (2,782 ) $ 3,411 (a) Excludes fully amortized intangible assets. (b) Intangible assets not subject to amortization have an indefinite life. |
Estimated Annual Amortization Expense | Estimated annual amortization expense for current intangibles for the next five years is as follows: For the year ended Estimated amortization expense (in millions) 2018 $ 181 2019 116 2020 102 2021 79 2022 60 |
Other assets (Tables)
Other assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Assets [Abstract] | |
Other Assets | The following table provides the components of other assets presented on the consolidated balance sheet. Other assets March 31, 2018 Dec. 31, 2017 (in millions) Corporate/bank-owned life insurance $ 4,866 $ 4,857 Accounts receivable 3,454 4,590 Fails to deliver 2,761 2,817 Software 1,515 1,499 Prepaid pension assets 1,471 1,416 Income taxes receivable 1,397 1,533 Renewable energy investments 1,354 1,368 Equity in a joint venture and other investments 1,080 1,083 Qualified affordable housing project investments 980 1,014 Federal Reserve Bank stock 477 477 Prepaid expense 472 395 Seed capital 301 288 Fair value of hedging derivatives 56 323 Other (a) 1,454 1,369 Total other assets $ 21,638 $ 23,029 (a) At March 31, 2018 and Dec. 31, 2017 , other assets include $36 million and $82 million , respectively, of Federal Home Loan Bank stock, at cost. |
Seed Capital and Private Equity Investments Valued Using NAV | The table below presents information on our investments valued using NAV. Other assets valued using NAV March 31, 2018 Dec. 31, 2017 (dollars in millions) Fair value Unfunded commitments Redemption frequency Redemption notice period Fair value Unfunded commitments Redemption frequency Redemption notice period Seed capital $ 42 $ — Daily-quarterly 1-90 days $ 40 $ 1 Daily-quarterly 1-90 days Private equity investments (SBICs) (a) 59 39 N/A N/A 55 42 N/A N/A Other ( b) 59 — Daily-quarterly 1-95 days 59 — Daily-quarterly 1-95 days Total $ 160 $ 39 $ 154 $ 43 (a) Private equity investments primarily include Volcker Rule-compliant investments in SBICs that invest in various sectors of the economy. Private equity investments do not have redemption rights. Distributions from such investments will be received as the underlying investments in the private equity investments, which have a life of 10 years, are liquidated. (b) Primarily relates to investments in funds that relate to deferred compensation arrangements with employees. N/A - Not applicable. |
Contract revenue (Tables)
Contract revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | Contract revenue is included in fee revenue on the consolidated income statement. The following table presents fee revenue related to contracts with customers, disaggregated by type, for each business segment. Disaggregation of contract revenue by business segment (a) Quarter ended March 31, 2018 (in millions) Investment Services Investment Management Other Total Fee revenue - contract revenue: Investment services fees: Asset servicing $ 1,117 $ 25 $ — $ 1,142 Clearing services 413 — 1 414 Issuer services 260 — — 260 Treasury services 138 — — 138 Total investment services fees 1,928 25 1 1,954 Investment management and performance fees 14 942 — 956 Financing-related fees 17 — — 17 Distribution and servicing (14 ) 50 — 36 Investment and other income 69 (51 ) — 18 Total fee revenue - contract revenue 2,014 966 1 2,981 Fee and other revenue - not in scope of ASC 606 (b) 236 46 7 289 Total fee and other revenue $ 2,250 $ 1,012 $ 8 $ 3,270 (a) Business segment data has been determined on an internal management basis of accounting, rather than the generally accepted accounting principles used for consolidated financial reporting. (b) Primarily includes foreign exchange and other trading revenue, financing-related fees, investment and other income and net securities gains, all of which are accounted for using other accounting guidance. |
Net interest revenue (Tables)
Net interest revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Interest Revenue (Expense), Net [Abstract] | |
Components of Net Interest Revenue | The following table provides the components of net interest revenue presented on the consolidated income statement. Net interest revenue Quarter ended March 31, 2018 Dec. 31, 2017 March 31, 2017 (in millions) Interest revenue Non-margin loans $ 305 $ 277 $ 245 Margin loans 115 94 75 Securities: Taxable 581 530 461 Exempt from federal income taxes 15 15 17 Total securities 596 545 478 Deposits with banks 42 37 22 Deposits with the Federal Reserve and other central banks 126 102 57 Federal funds sold and securities purchased under resale agreements 170 151 67 Trading assets 27 13 16 Total interest revenue 1,381 1,219 960 Interest expense Deposits 117 64 9 Federal funds purchased and securities sold under repurchase agreements 107 93 24 Trading liabilities 9 1 2 Other borrowed funds 9 13 2 Commercial paper 12 11 5 Customer payables 31 22 7 Long-term debt 177 164 119 Total interest expense 462 368 168 Net interest revenue 919 851 792 Provision for credit losses (5 ) (6 ) (5 ) Net interest revenue after provision for credit losses $ 924 $ 857 $ 797 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit (Credit) Cost | The components of net periodic benefit (credit) cost are as follows. The service cost component is reflected in staff expense, whereas the remaining components are reflected in other expense. Net periodic benefit (credit) cost Quarter ended March 31, 2018 March 31, 2017 (in millions) Domestic pension benefits Foreign pension benefits Health care benefits Domestic pension benefits Foreign pension benefits Health care benefits Service cost $ — $ 7 $ — $ — $ 7 $ — Interest cost 43 8 2 45 8 2 Expected return on assets (85 ) (15 ) (2 ) (81 ) (12 ) (2 ) Other 17 6 (1 ) 17 9 (1 ) Net periodic benefit (credit) cost $ (25 ) $ 6 $ (1 ) $ (19 ) $ 12 $ (1 ) |
Variable interest entities an40
Variable interest entities and securitization (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Securitizations And Variable Interest Entities Disclosure [Abstract] | |
Incremental Assets and Liabilities Included in Consolidated Financial Statements | The following table presents the incremental assets and liabilities included in BNY Mellon’s consolidated financial statements, after applying intercompany eliminations, as of March 31, 2018 and Dec. 31, 2017 . The net assets of any consolidated VIE are solely available to settle the liabilities of the VIE and to settle any investors’ ownership liquidation requests, including any seed capital invested in the VIE by BNY Mellon. Consolidated investments March 31, 2018 Dec. 31, 2017 (in millions) Investment Management funds Securitization Total consolidated investments Investment Management funds Securitization Total consolidated investments Securities - Available-for-sale $ — $ — $ — $ — $ 400 $ 400 Trading assets 353 400 753 516 — 516 Other assets 253 — 253 215 — 215 Total assets $ 606 (a) $ 400 $ 1,006 $ 731 (b) $ 400 $ 1,131 Other liabilities $ 11 $ 363 $ 374 $ 2 $ 367 $ 369 Total liabilities $ 11 (a) $ 363 $ 374 $ 2 (b) $ 367 $ 369 Nonredeemable noncontrolling interests $ 212 (a) $ — $ 212 $ 316 (b) $ — $ 316 (a) Includes voting model entities (“VMEs”) with assets of $55 million , liabilities of less than $1 million and nonredeemable noncontrolling interests of less than $1 million . (b) Includes VMEs with assets of $84 million , liabilities of $1 million and nonredeemable noncontrolling interests of $1 million . |
Schedule of Variable Interest Entities | As of March 31, 2018 and Dec. 31, 2017 , the following assets and liabilities related to the VIEs where BNY Mellon is not the primary beneficiary are included in our consolidated financial statements and primarily relate to accounting for our investments in qualified affordable housing and renewable energy projects. The maximum loss exposure indicated in the table below relates solely to BNY Mellon’s investments in, and unfunded commitments to, the VIEs. Non-consolidated VIEs March 31, 2018 Dec. 31, 2017 (in millions) Assets Liabilities Maximum loss exposure Assets Liabilities Maximum loss exposure Securities - Available-for-sale (a) $ 231 $ — $ 231 $ 203 $ — $ 203 Other 2,538 455 2,993 2,592 486 3,078 (a) Includes investments in the Company’s sponsored CLOs. |
Preferred stock (Tables)
Preferred stock (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Preferred Stock Summary | The following table summarizes BNY Mellon’s preferred stock issued and outstanding at March 31, 2018 and Dec. 31, 2017 . Preferred stock summary (a) Total shares issued and outstanding Carrying value (b) (in millions) Per annum dividend rate March 31, 2018 Dec. 31, 2017 March 31, 2018 Dec. 31, 2017 Series A Greater of (i) three-month LIBOR plus 0.565% for the related distribution period; or (ii) 4.000% 5,001 5,001 $ 500 $ 500 Series C 5.2% 5,825 5,825 568 568 Series D 4.50% to but excluding June 20, 2023, then a floating rate equal to the three-month LIBOR plus 2.46% 5,000 5,000 494 494 Series E 4.95% to and including June 20, 2020, then a floating rate equal to the three-month LIBOR plus 3.42% 10,000 10,000 990 990 Series F 4.625% to and including Sept. 20, 2026, then a floating rate equal to the three-month LIBOR plus 3.131% 10,000 10,000 990 990 Total 35,826 35,826 $ 3,542 $ 3,542 (a) All outstanding preferred stock is noncumulative perpetual preferred stock with a liquidation preference of $100,000 per share. (b) The carrying value of the Series C, Series D, Series E and Series F preferred stock is recorded net of issuance costs. |
Other comprehensive income (l42
Other comprehensive income (loss) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Components of Other Comprehensive Income (Loss) | Components of other comprehensive income (loss) Quarter ended March 31, 2018 Dec. 31, 2017 March 31, 2017 (in millions) Pre-tax amount Tax (expense) benefit After-tax amount Pre-tax amount Tax (expense) benefit After-tax amount Pre-tax amount Tax (expense) benefit After-tax amount Foreign currency translation: Foreign currency translation adjustments arising during the period (a) $ 201 $ 43 $ 244 $ 93 $ 19 $ 112 $ 96 $ 29 $ 125 Total foreign currency translation 201 43 244 93 19 112 96 29 125 Unrealized (loss) gain on assets available-for-sale: Unrealized (loss) gain arising during period (342 ) 67 (275 ) (120 ) 60 (60 ) 164 (70 ) 94 Reclassification adjustment (b) 49 (12 ) 37 26 (10 ) 16 (10 ) 4 (6 ) Net unrealized (loss) gain on assets available-for-sale (293 ) 55 (238 ) (94 ) 50 (44 ) 154 (66 ) 88 Defined benefit plans: Net gain (loss) arising during the period — — — 451 (111 ) 340 3 (1 ) 2 Foreign exchange adjustment — — — 1 — 1 — — — Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost (b) 22 (5 ) 17 26 (7 ) 19 25 (7 ) 18 Total defined benefit plans 22 (5 ) 17 478 (118 ) 360 28 (8 ) 20 Unrealized gain (loss) on cash flow hedges: Unrealized hedge gain (loss) arising during period 7 (1 ) 6 29 (8 ) 21 14 (5 ) 9 Reclassification of net loss (gain) to net income: FX contracts - other revenue (4 ) 1 (3 ) (8 ) 4 (4 ) — — — FX contracts - salary expense (6 ) 1 (5 ) (25 ) 6 (19 ) 4 (1 ) 3 FX contracts - trading revenue — — — — — — (3 ) 1 (2 ) Total reclassifications to net income (b) (10 ) 2 (8 ) (33 ) 10 (23 ) 1 — 1 Net unrealized (loss) gain on cash flow hedges (3 ) 1 (2 ) (4 ) 2 (2 ) 15 (5 ) 10 Total other comprehensive (loss) income $ (73 ) $ 94 $ 21 $ 473 $ (47 ) $ 426 $ 293 $ (50 ) $ 243 (a) Includes the impact of hedges of net investments in foreign subsidiaries. See Note 17 for additional information. (b) The reclassification adjustment related to the unrealized gain (loss) on assets available-for-sale is recorded as net securities gains on the Consolidated Income Statement. The amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost is recorded as staff expense on the Consolidated Income Statement. See Note 17 of the Notes to Consolidated Financial Statements for the location of the reclassification adjustment related to cash flow hedges on the Consolidated Income Statement. |
Fair value measurement (Tables)
Fair value measurement (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Carried at Fair Value on Recurring Basis | The following tables present the financial instruments carried at fair value at March 31, 2018 and Dec. 31, 2017 , by caption on the consolidated balance sheet and by the three-level valuation hierarchy. We have included credit ratings information in certain of the tables because the information indicates the degree of credit risk to which we are exposed, and significant changes in ratings classifications could result in increased risk for us. There were no material transfers between Level 1 and Level 2 during the first quarter of 2018 . Assets measured at fair value on a recurring basis at March 31, 2018 Total carrying (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Available-for-sale securities: U.S. Treasury $ 16,954 $ — $ — $ — $ 16,954 U.S. government agencies — 1,154 — — 1,154 Sovereign debt/sovereign guaranteed 10,418 2,816 — — 13,234 State and political subdivisions — 2,726 — — 2,726 Agency RMBS — 24,036 — — 24,036 Non-agency RMBS (b) — 1,476 — — 1,476 Other RMBS — 146 — — 146 Commercial MBS — 1,373 — — 1,373 Agency commercial MBS — 9,512 — — 9,512 CLOs — 3,129 — — 3,129 Other asset-backed securities — 278 — — 278 Corporate bonds — 1,222 — — 1,222 Other debt securities — 3,871 — — 3,871 Foreign covered bonds — 2,719 — — 2,719 Total available-for-sale securities 27,372 54,458 — — 81,830 Trading assets: Debt instruments (c) 2,663 1,599 — — 4,262 Equity instruments 1,623 — — — 1,623 Derivative assets not designated as hedging: Interest rate 17 3,921 — (2,550 ) 1,388 Foreign exchange — 4,391 — (3,092 ) 1,299 Equity and other contracts 1 100 — (77 ) 24 Total derivative assets not designated as hedging 18 8,412 — (5,719 ) 2,711 Total trading assets 4,304 10,011 — (5,719 ) 8,596 Other assets: Derivative assets designated as hedging: Interest rate — 11 — — 11 Foreign exchange — 45 — — 45 Total derivative assets designated as hedging — 56 — — 56 Other assets (d) 139 206 — — 345 Other assets measured at NAV (d) 160 Total other assets 139 262 — — 561 Subtotal assets of operations at fair value 31,815 64,731 — (5,719 ) 90,987 Percentage of assets of operations prior to netting 33 % 67 % — % Assets of consolidated investment management funds 340 266 — — 606 Total assets $ 32,155 $ 64,997 $ — $ (5,719 ) $ 91,593 Percentage of total assets prior to netting 33 % 67 % — % Liabilities measured at fair value on a recurring basis at March 31, 2018 Total carrying (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Trading liabilities: Debt instruments $ 1,155 $ 104 $ — $ — $ 1,259 Equity instruments 117 — — — 117 Derivative liabilities not designated as hedging: Interest rate 12 3,393 — (2,482 ) 923 Foreign exchange — 4,168 — (3,169 ) 999 Equity and other contracts — 138 — (71 ) 67 Total derivative liabilities not designated as hedging 12 7,699 — (5,722 ) 1,989 Total trading liabilities 1,284 7,803 — (5,722 ) 3,365 Long-term debt (c) — 363 — — 363 Other liabilities – derivative liabilities designated as hedging: Interest rate — 95 — — 95 Foreign exchange — 284 — — 284 Total other liabilities – derivative liabilities designated as hedging — 379 — — 379 Subtotal liabilities of operations at fair value 1,284 8,545 — (5,722 ) 4,107 Percentage of liabilities of operations prior to netting 13 % 87 % — % Liabilities of consolidated investment management funds — 11 — — 11 Total liabilities $ 1,284 $ 8,556 $ — $ (5,722 ) $ 4,118 Percentage of total liabilities prior to netting 13 % 87 % — % (a) ASC 815, Derivatives and Hedging, permits the netting of derivative receivables and derivative payables under legally enforceable master netting agreements and permits the netting of cash collateral. Netting is applicable to derivatives not designated as hedging instruments included in trading assets or trading liabilities and derivatives designated as hedging instruments included in other assets or other liabilities. Netting is allocated to the derivative products based on the net fair value of each product. (b) Includes $1,019 million in Level 2 that was included in the former Grantor Trust. (c) Includes certain interests in securitizations. (d) Includes seed capital, private equity and other assets. Assets measured at fair value on a recurring basis at Dec. 31, 2017 Total carrying value (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Available-for-sale securities: U.S. Treasury $ 15,263 $ — $ — $ — $ 15,263 U.S. government agencies — 908 — — 908 Sovereign debt/sovereign guaranteed 9,919 2,638 — — 12,557 State and political subdivisions — 2,957 — — 2,957 Agency RMBS — 23,819 — — 23,819 Non-agency RMBS (b) — 1,578 — — 1,578 Other RMBS — 149 — — 149 Commercial MBS — 1,360 — — 1,360 Agency commercial MBS — 8,762 — — 8,762 CLOs — 2,909 — — 2,909 Other asset-backed securities — 1,043 — — 1,043 Money market funds (c) 963 — — — 963 Corporate bonds — 1,255 — — 1,255 Other debt securities — 3,491 — — 3,491 Foreign covered bonds — 2,529 — — 2,529 Total available-for-sale securities 26,145 53,398 — — 79,543 Trading assets: Debt and equity instruments (c) 1,344 1,910 — — 3,254 Derivative assets not designated as hedging: Interest rate 9 6,430 — (5,075 ) 1,364 Foreign exchange — 5,104 — (3,720 ) 1,384 Equity and other contracts — 70 — (50 ) 20 Total derivative assets not designated as hedging 9 11,604 — (8,845 ) 2,768 Total trading assets 1,353 13,514 — (8,845 ) 6,022 Other assets : Derivative assets designated as hedging: Interest rate — 278 — — 278 Foreign exchange — 45 — — 45 Total derivative assets designated as hedging — 323 — — 323 Other assets (d) 144 170 — — 314 Other assets measured at NAV (d) 154 Total other assets 144 493 — — 791 Subtotal assets of operations at fair value 27,642 67,405 — (8,845 ) 86,356 Percentage of assets of operations prior to netting 29 % 71 % — % Assets of consolidated investment management funds 322 409 — — 731 Total assets $ 27,964 $ 67,814 $ — $ (8,845 ) $ 87,087 Percentage of total assets prior to netting 29 % 71 % — % Liabilities measured at fair value on a recurring basis at Dec. 31, 2017 Total carrying value (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Trading liabilities: Debt and equity instruments $ 1,128 $ 80 $ — $ — $ 1,208 Derivative liabilities not designated as hedging: Interest rate 4 6,349 — (5,495 ) 858 Foreign exchange — 5,067 — (3,221 ) 1,846 Equity and other contracts — 153 — (81 ) 72 Total derivative liabilities not designated as hedging 4 11,569 — (8,797 ) 2,776 Total trading liabilities 1,132 11,649 — (8,797 ) 3,984 Long-term debt ( c ) — 367 — — 367 Other liabilities – derivative liabilities designated as hedging: Interest rate — 534 — — 534 Foreign exchange — 266 — — 266 Total other liabilities – derivative liabilities designated as hedging — 800 — — 800 Subtotal liabilities of operations at fair value 1,132 12,816 — (8,797 ) 5,151 Percentage of liabilities of operations prior to netting 8 % 92 % — % Liabilities of consolidated investment management funds 1 1 — — 2 Total liabilities $ 1,133 $ 12,817 $ — $ (8,797 ) $ 5,153 Percentage of total liabilities prior to netting 8 % 92 % — % (a) ASC 815, Derivatives and Hedging, permits the netting of derivative receivables and derivative payables under legally enforceable master netting agreements and permits the netting of cash collateral. Netting is applicable to derivatives not designated as hedging instruments included in trading assets or trading liabilities and derivatives designated as hedging instruments included in other assets or other liabilities. Netting is allocated to the derivative products based on the net fair value of each product. (b) Includes $1,091 million in Level 2 that was included in the former Grantor Trust. (c) Includes certain interests in securitizations. (d) Includes private equity investments and seed capital. |
Details Of Certain Items Measured At Fair Value on Recurring Basis | Details of certain items measured at fair value on a recurring basis March 31, 2018 Dec. 31, 2017 Total carrying value (b) Ratings (a) Total carrying value (b) Ratings (a) AAA/ AA- A+/ A- BBB+/ BBB- BB+ and lower AAA/ AA- A+/ A- BBB+/ BBB- BB+ and lower (dollars in millions) Non-agency RMBS (c) , originated in: 2007 $ 317 — % — % 5 % 95 % $ 351 — % — % — % 100 % 2006 363 — — — 100 387 — — — 100 2005 486 5 2 6 87 507 6 2 5 87 2004 and earlier 310 3 3 32 62 333 3 3 30 64 Total non-agency RMBS $ 1,476 3 % 1 % 9 % 87 % $ 1,578 3 % 1 % 8 % 88 % Commercial MBS, originated in: 2009-2017 $ 1,321 96 % 4 % — % — % $ 1,309 94 % 6 % — % — % 2005 52 100 — — — 51 100 — — — Total commercial MBS $ 1,373 96 % 4 % — % — % $ 1,360 94 % 6 % — % — % Other RMBS, originated in: 2007 and earlier $ 146 38 % 62 % — % — % $ 149 37 % 63 % — % — % Total other RMBS $ 146 38 % 62 % — % — % $ 149 37 % 63 % — % — % Foreign covered bonds: Canada $ 1,609 100 % — % — % — % $ 1,659 100 % — % — % — % Australia 347 100 — — — 265 100 — — — United Kingdom 239 100 — — — 103 100 — — — Sweden 204 100 — — — 136 100 — — — Other 320 100 — — — 366 100 — — — Total foreign covered bonds $ 2,719 100 % — % — % — % $ 2,529 100 % — % — % — % Sovereign debt/sovereign guaranteed: United Kingdom $ 3,140 100 % — % — % — % $ 3,052 100 % — % — % — % France 2,171 100 — — — 2,046 100 — — — Germany 1,856 100 — — — 1,586 100 — — — Spain 1,681 — — 100 — 1,635 — — 100 — Italy 1,138 — — 100 — 1,292 — — 100 — Netherlands 1,050 100 — — — 1,027 100 — — — Ireland 857 — 100 — — 843 — 100 — — Belgium 820 100 — — — 803 100 — — — Other (d) 521 75 — — 25 273 50 — — 50 Total sovereign debt/sovereign guaranteed $ 13,234 71 % 7 % 21 % 1 % $ 12,557 69 % 7 % 23 % 1 % (a) Represents ratings by S&P or the equivalent. (b) At March 31, 2018 and Dec. 31, 2017 , sovereign debt/sovereign guaranteed securities were included in Level 1 and Level 2 in the valuation hierarchy. All other assets in the table are Level 2 assets in the valuation hierarchy. (c) Includes $1,019 million at March 31, 2018 and $1,091 million at Dec. 31, 2017 that were included in the former Grantor Trust. (d) Includes non-investment grade sovereign debt/sovereign guaranteed securities related to Brazil of $133 million at March 31, 2018 and $136 million at Dec. 31, 2017 . |
Assets Measured at Fair Value on Nonrecurring Basis | The following tables present the financial instruments carried on the consolidated balance sheet by caption and level in the fair value hierarchy as of March 31, 2018 and Dec. 31, 2017 , for which a nonrecurring change in fair value has been recorded during the quarters ended March 31, 2018 and Dec. 31, 2017 . Assets measured at fair value on a nonrecurring basis at March 31, 2018 Total carrying value (in millions) Level 1 Level 2 Level 3 Loans (a) $ — $ 70 $ 5 $ 75 Other assets (b) — 30 — 30 Total assets at fair value on a nonrecurring basis $ — $ 100 $ 5 $ 105 Assets measured at fair value on a nonrecurring basis at Dec. 31, 2017 Total carrying value (in millions) Level 1 Level 2 Level 3 Loans (a) $ — $ 73 $ 6 $ 79 Other assets (b) — 4 — 4 Total assets at fair value on a nonrecurring basis $ — $ 77 $ 6 $ 83 (a) During the quarters ended March 31, 2018 and Dec. 31, 2017 , the fair value of these loans decreased less than $1 million and less than $1 million , respectively, based on the fair value of the underlying collateral based on guidance in ASC 310, Receivables, with an offset to the allowance for credit losses. (b) Includes other assets received in satisfaction of debt. |
Summary of Financial Instruments Not Carried at Fair Value | The following tables present the estimated fair value and the carrying amount of financial instruments not carried at fair value on the consolidated balance sheet at March 31, 2018 and Dec. 31, 2017 , by caption on the consolidated balance sheet and by the valuation hierarchy. See Note 18 of the Notes to Consolidated Financial Statements in our 2017 Annual Report for additional information regarding the financial instruments within the scope of this disclosure, and the methods and significant assumptions used to estimate their fair value. Summary of financial instruments March 31, 2018 (in millions) Level 1 Level 2 Level 3 Total estimated fair value Carrying amount Assets: Interest-bearing deposits with the Federal Reserve and other central banks $ — $ 91,431 $ — $ 91,431 $ 91,431 Interest-bearing deposits with banks — 15,194 — 15,194 15,186 Federal funds sold and securities purchased under resale agreements — 28,784 — 28,784 28,784 Securities held-to-maturity 8,037 28,098 — 36,135 36,959 Loans (a) — 59,312 — 59,312 59,371 Other financial assets 4,636 1,208 — 5,844 5,844 Total $ 12,673 $ 224,027 $ — $ 236,700 $ 237,575 Liabilities: Noninterest-bearing deposits $ — $ 76,880 $ — $ 76,880 $ 76,880 Interest-bearing deposits — 163,158 — 163,158 164,964 Federal funds purchased and securities sold under repurchase agreements — 21,600 — 21,600 21,600 Payables to customers and broker-dealers — 20,172 — 20,172 20,172 Commercial paper — 3,936 — 3,936 3,936 Borrowings — 1,432 — 1,432 1,432 Long-term debt — 27,150 — 27,150 27,576 Total $ — $ 314,328 $ — $ 314,328 $ 316,560 (a) Does not include the leasing portfolio. Summary of financial instruments Dec. 31, 2017 (in millions) Level 1 Level 2 Level 3 Total estimated Carrying Assets: Interest-bearing deposits with the Federal Reserve and other central banks $ — $ 91,510 $ — $ 91,510 $ 91,510 Interest-bearing deposits with banks — 11,982 — 11,982 11,979 Federal funds sold and securities purchased under resale agreements — 28,135 — 28,135 28,135 Securities held-to-maturity 11,365 29,147 — 40,512 40,827 Loans (a) — 60,219 — 60,219 60,082 Other financial assets 5,382 1,244 — 6,626 6,626 Total $ 16,747 $ 222,237 $ — $ 238,984 $ 239,159 Liabilities: Noninterest-bearing deposits $ — $ 82,716 $ — $ 82,716 $ 82,716 Interest-bearing deposits — 160,042 — 160,042 161,606 Federal funds purchased and securities sold under repurchase agreements — 15,163 — 15,163 15,163 Payables to customers and broker-dealers — 20,184 — 20,184 20,184 Commercial paper — 3,075 — 3,075 3,075 Borrowings — 2,931 — 2,931 2,931 Long-term debt — 27,789 — 27,789 27,612 Total $ — $ 311,900 $ — $ 311,900 $ 313,287 (a) Does not include the leasing portfolio. |
Summary of the Carrying Amount, Notional Amount and Unrealized Gain (Loss) of Hedged Financial Instruments | The table below summarizes the carrying amount of the hedged financial instruments, the notional amount of the hedge and the unrealized gain (loss) (estimated fair value) of the derivatives. Hedged financial instruments Carrying amount Notional amount of hedge Unrealized (in millions) Gain (Loss) March 31, 2018 Securities available-for-sale $ 13,522 $ 13,411 $ 8 $ (87 ) Long-term debt 24,089 24,600 — (8 ) Dec. 31, 2017 Securities available-for-sale $ 12,307 $ 12,365 $ 102 $ (301 ) Long-term debt 23,821 23,950 175 (233 ) |
Fair value option (Tables)
Fair value option (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities of Consolidated Investment Management Funds, at Fair Value | The following table presents the assets and liabilities of consolidated investment management funds, at fair value. Assets and liabilities of consolidated investment management funds, at fair value March 31, 2018 Dec. 31, 2017 (in millions) Assets of consolidated investment management funds: Trading assets $ 353 $ 516 Other assets 253 215 Total assets of consolidated investment management funds $ 606 $ 731 Liabilities of consolidated investment management funds: Other liabilities $ 11 $ 2 Total liabilities of consolidated investment management funds $ 11 $ 2 |
Change in Fair Value of Long-Term Debt in Foreign Exchange and Other Trading Revenue | The following table presents the change in fair value of long-term debt recorded in foreign exchange and other trading revenue in the consolidated income statement. Foreign exchange and other trading revenue Quarter ended March 31, 2018 Dec. 31, 2017 March 31, 2017 (in millions) Long-term debt (a) $ 4 $ 2 $ (1 ) (a) The change in fair value is approximately offset by an economic hedge included in foreign exchange and other trading revenue. |
Derivative instruments (Tables)
Derivative instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Gains (Losses) Related to Hedging | The following table presents the gains (losses) related to our hedging derivative portfolio recognized in the income statement. Income statement impact of fair value and cash flow hedges Quarter ended (in millions) Location of gains (losses) March 31, 2018 Dec. 31, 2017 March 31, 2017 Fair value hedges of available-for-sale securities Derivative Interest income $ 397 $ 91 $ 82 Hedged item Interest income (383 ) (93 ) (81 ) Fair value hedges of long-term debt Derivative Interest expense (378 ) (185 ) (72 ) Hedged item Interest expense 377 178 67 Cash flow hedges of forecasted FX exposures Gain reclassified from OCI into income Trading revenue — — 3 Gain (loss) reclassified from OCI into income Salary expense 6 25 (4 ) Gain reclassified from OCI into income Other revenue 4 8 — Gains (losses) recognized in the consolidated income statement due to fair value and cash flow hedging relationships $ 23 $ 24 $ (5 ) |
Impacts of Hedging Derivatives in Net Investment Hedging Relationships | The following table presents the impact of hedging derivatives used in net investment hedging relationships in the income statement. Impact of derivative instruments used in net investment hedging relationships in the income statement (in millions) Derivatives in net investment hedging relationships Gain or (loss) recognized in accumulated OCI on derivatives Location of gain or (loss) reclassified from accumulated OCI into income Gain or (loss) reclassified from accumulated OCI into income 1Q18 4Q17 1Q17 1Q18 4Q17 1Q17 FX contracts $ (158 ) $ (49 ) $ (96 ) Net interest revenue $ — $ — $ — |
Summary of Hedged Items in Fair Value Hedging Relationships | The following table presents information on the hedged items in fair value hedging relationships. Hedged items in fair value hedging relationships at March 31, 2018 Carrying amount of hedged asset or liability Hedge accounting basis adjustment increase (decrease) (in millions) Available-for-sale investment securities $ 13,522 $ (238 ) Long-term debt 24,089 (511 ) (a) (a) Includes $14 million of basis adjustment (reduction) on long-term debt associated with terminated hedges, whereby the long-term debt instrument has been subsequently re-designated in new hedge relationships existing as of the balance sheet date. |
Impact of Derivative Instruments on the Balance Sheet | The following table summarizes the notional amount and credit exposure of our total derivative portfolio at March 31, 2018 and Dec. 31, 2017 . Impact of derivative instruments on the balance sheet Notional value Asset derivatives fair value Liability derivatives fair value (in millions) March 31, 2018 Dec. 31, 2017 March 31, 2018 Dec. 31, 2017 March 31, 2018 Dec. 31, 2017 Derivatives designated as hedging instruments: (a) Interest rate contracts $ 38,011 $ 36,315 $ 11 $ 278 $ 95 $ 534 Foreign exchange contracts 8,212 8,923 45 45 284 266 Total derivatives designated as hedging instruments $ 56 $ 323 $ 379 $ 800 Derivatives not designated as hedging instruments: (b) Interest rate contracts $ 286,222 $ 267,485 $ 3,938 $ 6,439 $ 3,405 $ 6,353 Foreign exchange contracts 793,758 767,999 4,391 5,104 4,168 5,067 Equity contracts 1,615 1,698 101 70 135 149 Credit contracts 180 180 — — 3 4 Total derivatives not designated as hedging instruments $ 8,430 $ 11,613 $ 7,711 $ 11,573 Total derivatives fair value (c) $ 8,486 $ 11,936 $ 8,090 $ 12,373 Effect of master netting agreements (d) (5,719 ) (8,845 ) (5,722 ) (8,797 ) Fair value after effect of master netting agreements $ 2,767 $ 3,091 $ 2,368 $ 3,576 (a) The fair value of asset derivatives and liability derivatives designated as hedging instruments is recorded as other assets and other liabilities, respectively, on the balance sheet. (b) The fair value of asset derivatives and liability derivatives not designated as hedging instruments is recorded as trading assets and trading liabilities, respectively, on the balance sheet. (c) Fair values are on a gross basis, before consideration of master netting agreements, as required by ASC 815, Derivatives and Hedging. (d) Effect of master netting agreements includes cash collateral received and paid of $808 million and $811 million , respectively, at March 31, 2018 , and $925 million and $877 million , respectively, at Dec. 31, 2017 . |
Revenue from Foreign Exchange and Other Trading | The following table presents our foreign exchange and other trading revenue. Foreign exchange and other trading revenue (in millions) 1Q18 4Q17 1Q17 Foreign exchange $ 183 $ 175 $ 154 Other trading revenue (loss) 26 (9 ) 10 Total foreign exchange and other trading revenue $ 209 $ 166 $ 164 |
Fair Value of Derivative Contracts Falling under Early Termination Provisions that were in Net Liability Position | The following table shows the fair value of contracts falling under early termination provisions that were in net liability positions as of March 31, 2018 for three key ratings triggers. If The Bank of New York Mellon’s rating was changed to (Moody’s/S&P) Potential close-out exposures (fair value) (a) A3/A- $ 16 million Baa2/BBB $ 232 million Ba1/BB+ $ 1,419 million (a) The amounts represent potential total close-out values if The Bank of New York Mellon’s rating were to immediately drop to the indicated levels. |
Offsetting Assets | The following tables present derivative instruments and financial instruments that are either subject to an enforceable netting agreement or offset by collateral arrangements. There were no derivative instruments or financial instruments subject to a legally enforceable netting agreement for which we are not currently netting. Offsetting of derivative assets and financial assets at March 31, 2018 Gross assets recognized Gross amounts offset in the balance sheet Net assets recognized in the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral received Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 3,270 $ 2,550 $ 720 $ 140 $ — $ 580 Foreign exchange contracts 3,885 3,092 793 137 — 656 Equity and other contracts 98 77 21 — — 21 Total derivatives subject to netting arrangements 7,253 5,719 1,534 277 — 1,257 Total derivatives not subject to netting arrangements 1,233 — 1,233 — — 1,233 Total derivatives 8,486 5,719 2,767 277 — 2,490 Reverse repurchase agreements 36,755 18,763 (b) 17,992 17,981 — 11 Securities borrowing 10,792 — 10,792 10,546 — 246 Total $ 56,033 $ 24,482 $ 31,551 $ 28,804 $ — $ 2,747 Offsetting of derivative assets and financial assets at Dec. 31, 2017 Gross assets recognized Gross amounts offset in the balance sheet Net assets recognized in the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral received Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 5,915 $ 5,075 $ 840 $ 178 $ — $ 662 Foreign exchange contracts 4,666 3,720 946 116 — 830 Equity and other contracts 67 50 17 — — 17 Total derivatives subject to netting arrangements 10,648 8,845 1,803 294 — 1,509 Total derivatives not subject to netting arrangements 1,288 — 1,288 — — 1,288 Total derivatives 11,936 8,845 3,091 294 — 2,797 Reverse repurchase agreements 42,784 25,848 (b) 16,936 16,923 — 13 Securities borrowing 11,199 — 11,199 10,858 — 341 Total $ 65,919 $ 34,693 $ 31,226 $ 28,075 $ — $ 3,151 (a) Includes the effect of netting agreements and net cash collateral received. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions. (b) Offsetting of reverse repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. |
Offsetting Liabilities | Offsetting of derivative liabilities and financial liabilities at March 31, 2018 Net liabilities recognized in the balance sheet Gross liabilities recognized Gross amounts offset in the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral pledged Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 3,424 $ 2,482 $ 942 $ 834 $ — $ 108 Foreign exchange contracts 3,964 3,168 796 185 — 611 Equity and other contracts 128 72 56 53 — 3 Total derivatives subject to netting arrangements 7,516 5,722 1,794 1,072 — 722 Total derivatives not subject to netting arrangements 574 — 574 — — 574 Total derivatives 8,090 5,722 2,368 1,072 — 1,296 Repurchase agreements 27,763 18,763 (b) 9,000 9,000 — — Securities lending 1,332 — 1,332 1,278 — 54 Total $ 37,185 $ 24,485 $ 12,700 $ 11,350 $ — $ 1,350 Offsetting of derivative liabilities and financial liabilities at Dec. 31, 2017 Net liabilities recognized in the balance sheet Gross liabilities recognized Gross amounts offset in the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral pledged Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 6,810 $ 5,495 $ 1,315 $ 1,222 $ — $ 93 Foreign exchange contracts 4,765 3,221 1,544 177 — 1,367 Equity and other contracts 143 81 62 58 — 4 Total derivatives subject to netting arrangements 11,718 8,797 2,921 1,457 — 1,464 Total derivatives not subject to netting arrangements 655 — 655 — — 655 Total derivatives 12,373 8,797 3,576 1,457 — 2,119 Repurchase agreements 33,908 25,848 (b) 8,060 8,059 — 1 Securities lending 2,186 — 2,186 2,091 — 95 Total $ 48,467 $ 34,645 $ 13,822 $ 11,607 $ — $ 2,215 (a) Includes the effect of netting agreements and net cash collateral paid. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions. (b) Offsetting of repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | The following table presents the contract value of repurchase agreements and securities lending transactions accounted for as secured borrowings by the type of collateral provided to counterparties. Repurchase agreements and securities lending transactions accounted for as secured borrowings March 31, 2018 Dec. 31, 2017 Remaining contractual maturity Total Remaining contractual maturity Total (in millions) Overnight and continuous Up to 30 days 30 days or more Overnight and continuous Up to 30 days 30 days or more Repurchase agreements: U.S. Treasury $ 19,858 $ 1 $ — $ 19,859 $ 26,883 $ 11 $ — $ 26,894 U.S. government agencies 719 118 — 837 570 180 — 750 Agency RMBS 1,808 181 1,032 3,021 2,574 109 — 2,683 Corporate bonds 712 — 1,132 1,844 373 — 1,052 1,425 Other debt securities 655 — 930 1,585 253 — 731 984 Equity securities 411 — 206 617 655 — 517 1,172 Total $ 24,163 $ 300 $ 3,300 $ 27,763 $ 31,308 $ 300 $ 2,300 $ 33,908 Securities lending: U.S. government agencies $ 20 $ — $ — $ 20 $ 72 $ — $ — $ 72 Other debt securities 369 — — 369 316 — — 316 Equity securities 943 — — 943 1,798 — — 1,798 Total $ 1,332 $ — $ — $ 1,332 $ 2,186 $ — $ — $ 2,186 Total borrowings $ 25,495 $ 300 $ 3,300 $ 29,095 $ 33,494 $ 300 $ 2,300 $ 36,094 |
Commitments and contingent li46
Commitments and contingent liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Off-Balance Sheet Credit Risks, Net of Participations | The following table presents a summary of our off-balance sheet credit risks. Off-balance sheet credit risks March 31, 2018 Dec. 31, 2017 (in millions) Lending commitments $ 51,312 $ 51,467 Standby letters of credit (a) 3,367 3,531 Commercial letters of credit 191 122 Securities lending indemnifications (b)(c) 462,900 432,084 (a) Net of participations totaling $605 million at March 31, 2018 and $672 million at Dec. 31, 2017 . (b) Excludes the indemnification for securities for which BNY Mellon acts as an agent on behalf of CIBC Mellon clients, which totaled $70 billion at March 31, 2018 and $69 billion at Dec. 31, 2017 . (c) Includes cash collateral, invested in indemnified repurchase agreements, held by us as securities lending agent of $36 billion at March 31, 2018 and $33 billion at Dec. 31, 2017 . |
Standby Letters of Credits by Investment Grade | The table below shows SBLCs by investment grade: Standby letters of credit March 31, 2018 Dec. 31, 2017 Investment grade 86 % 84 % Non-investment grade 14 % 16 % |
Significant Industry Concentrations Related to Credit Exposure | The tables below present our credit exposure in the financial institutions and commercial portfolios. Financial institutions portfolio exposure (in billions) March 31, 2018 Loans Unfunded commitments Total exposure Securities industry $ 3.6 $ 19.2 $ 22.8 Banks 6.9 1.3 8.2 Asset managers 1.3 6.5 7.8 Insurance 0.1 3.5 3.6 Government 0.1 0.9 1.0 Other 0.8 1.3 2.1 Total $ 12.8 $ 32.7 $ 45.5 Commercial portfolio exposure (in billions) March 31, 2018 Loans Unfunded commitments Total exposure Manufacturing $ 1.3 $ 6.1 $ 7.4 Services and other 0.7 5.8 6.5 Energy and utilities 0.6 4.4 5.0 Media and telecom — 1.4 1.4 Total $ 2.6 $ 17.7 $ 20.3 |
Lines of business (Tables)
Lines of business (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Contribution of Segments to Overall Profitability | The following consolidating schedules present the contribution of our businesses to our overall profitability. For the quarter ended March 31, 2018 Investment Investment Other Consolidated (dollars in millions) Total fee and other revenue $ 2,250 $ 1,012 (a) $ 8 $ 3,270 (a) Net interest revenue (expense) 844 76 (1 ) 919 Total revenue 3,094 1,088 (a) 7 4,189 (a) Provision for credit losses (7 ) 2 — (5 ) Noninterest expense 1,949 705 87 2,741 (b) Income (loss) before taxes $ 1,152 $ 381 (a) $ (80 ) $ 1,453 (a)(b) Pre-tax operating margin (c) 37 % 35 % N/M 35 % Average assets $ 278,095 $ 31,963 $ 48,117 $ 358,175 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of less than $1 million , representing $11 million of losses and a loss attributable to noncontrolling interests of $11 million . Income before taxes is net of a loss attributable to noncontrolling interests of $11 million . (b) Noninterest expense includes income attributable to noncontrolling interests of $2 million related to other consolidated subsidiaries. (c) Income before taxes divided by total revenue. N/M - Not meaningful. For the quarter ended Dec. 31, 2017 Investment Investment Other Consolidated (dollars in millions) Total fee and other revenue $ 2,141 $ 974 (a) $ (247 ) $ 2,868 (a) Net interest revenue (expense) 813 74 (36 ) 851 Total revenue (loss) 2,954 1,048 (a) (283 ) 3,719 (a) Provision for credit losses (2 ) 1 (5 ) (6 ) Noninterest expense 2,097 771 135 3,003 (b) Income (loss) before taxes $ 859 $ 276 (a) $ (413 ) $ 722 (a)(b) Pre-tax operating margin (c) 29 % 26 % N/M 20 % Average assets $ 260,494 $ 31,681 $ 58,611 $ 350,786 (a) Both total fee and other revenue and total revenue (loss) include net income from consolidated investment management funds of $8 million , representing $17 million of income and noncontrolling interests of $9 million . Income before taxes is net of noncontrolling interests of $9 million . (b) Noninterest expense includes a loss attributable to noncontrolling interests of $3 million related to other consolidated subsidiaries. (c) Income before taxes divided by total revenue. N/M - Not meaningful. For the quarter ended March 31, 2017 Investment Investment Other Consolidated (dollars in millions) Total fee and other revenue $ 2,084 $ 877 (a) $ 72 $ 3,033 (a) Net interest revenue (expense) 707 86 (1 ) 792 Total revenue 2,791 963 (a) 71 3,825 (a) Provision for credit losses — 3 (8 ) (5 ) Noninterest expense 1,849 683 107 2,639 (b) Income (loss) before taxes $ 942 $ 277 (a) $ (28 ) $ 1,191 (a)(b) Pre-tax operating margin (c) 34 % 29 % N/M 31 % Average assets $ 251,027 $ 31,067 $ 54,106 $ 336,200 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of $15 million , representing $33 million of income and noncontrolling interests of $18 million . Income before taxes is net of noncontrolling interests of $18 million . (b) Noninterest expense includes a loss attributable to noncontrolling interests of $3 million related to other consolidated subsidiaries. (c) Income before taxes divided by total revenue. N/M - Not meaningful. |
Supplemental information to t48
Supplemental information to the Consolidated Statement of Cash Flows (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Noncash Investing and Financing Transactions that are Not Reflected in Consolidated Statement of Cash Flows | Non-cash investing and financing transactions that, appropriately, are not reflected in the consolidated statement of cash flows are listed below. Non-cash investing and financing transactions Three months ended March 31, (in millions) 2018 2017 Transfers from loans to other assets for other real estate owned $ 1 $ 1 Change in assets of consolidated VIEs 125 204 Change in liabilities of consolidated VIEs 9 106 Change in nonredeemable noncontrolling interests of consolidated investment management funds 104 84 Securities purchased not settled 414 580 Securities sold not settled 30 81 Available-for-sale securities transferred to trading assets 963 — Held-to-maturity securities transferred to available-for-sale 1,087 — Premises and equipment/capitalized software funded by capital lease obligations 15 1 |
Accounting changes and new ac49
Accounting changes and new accounting guidance - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Jan. 01, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Equity securities without readily determinable fiar value | $ 47 | ||||
Held-to-maturity securities transferred to available-for-sale, amortized cost | $ 1,117 | ||||
Pre-tax adjustment to other comprehensive income | 47 | ||||
Staff | [1] | 1,576 | $ 1,628 | $ 1,488 | |
Cash segregated under federal or other regulations | 1,236 | 1,751 | 2,900 | ||
Available-for-sale securities transferred to trading assets | 1,000 | ||||
Change in interest-bearing deposits with the Federal Reserve and other central banks | 1,489 | (6,569) | |||
Change in accruals and other, net | (201) | (1,852) | |||
Other assets | 21,638 | 23,029 | 23,020 | ||
Accrued taxes and other expenses | 6,225 | 6,207 | |||
Other liabilities | 6,050 | 6,114 | |||
Retained earnings | 26,496 | 25,635 | 25,580 | ||
Securities without readily determinable fair value, upward price adjustment | 20 | ||||
Equity securities, gain (loss) | 2 | ||||
Equity securities, realized gain | 9 | ||||
Equity securities, unrealized loss | (7) | ||||
ASU 2017-12 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adjustment for the cumulative affect of applying the ASU | 25 | ||||
ASU 2017-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Staff | 14 | 16 | |||
ASU 2016-18 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Change in interest-bearing deposits with the Federal Reserve and other central banks | (515) | (477) | |||
ASU 2016-15 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Change in accruals and other, net | $ 9 | $ 9 | |||
ASU 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adjustment for the cumulative affect of applying the ASU | (55) | ||||
Accumulated other comprehensive (loss) income, net of tax | ASU 2017-12 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adjustment for the cumulative affect of applying the ASU | (2) | ||||
Retained earnings | ASU 2017-12 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adjustment for the cumulative affect of applying the ASU | 27 | ||||
Retained earnings | ASU 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adjustment for the cumulative affect of applying the ASU | $ (55) | ||||
Impact of adoption | ASU 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other assets | (9) | ||||
Accrued taxes and other expenses | (18) | ||||
Other liabilities | 64 | ||||
Retained earnings | $ (55) | ||||
[1] | In the first quarter of 2018, we adopted new accounting guidance included in ASU 2017-07, Compensation-Retirement Benefits - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which required the reclassification of the components of pension and other post-retirement costs, other than the service cost component. As a result, staff expense increased and other expense decreased. Prior periods have been reclassified. See Note 2 of the Notes to Consolidated Financial Statements for additional information. |
Accounting changes and new ac50
Accounting changes and new accounting guidance - Cumulative Effect of Adoption of New Guidance (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Other assets | $ 21,638 | $ 23,020 | $ 23,029 |
Accrued taxes and other expenses | 6,207 | 6,225 | |
Other liabilities | 6,114 | 6,050 | |
Retained earnings | $ 26,496 | 25,580 | $ 25,635 |
Impact of adoption | ASU 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Other assets | (9) | ||
Accrued taxes and other expenses | (18) | ||
Other liabilities | 64 | ||
Retained earnings | $ (55) |
Acquisitions and dispositions (
Acquisitions and dispositions (Details) - USD ($) | Jan. 02, 2018 | Mar. 31, 2018 |
Business Acquisition [Line Items] | ||
Contingent payments | $ 0 | |
Potential obligation to pay additional consideration, lower range | 0 | |
Potential obligation to pay additional consideration, upper range | $ 16,000,000 | |
Contingent consideration payment period | 12 months | |
Goodwill written off | $ 52,000,000 | |
CenterSquare | ||
Business Acquisition [Line Items] | ||
Assets under management divested | $ 10,000,000,000 | |
Goodwill written off | $ 52,000,000 |
Securities - Amortized Cost, Gr
Securities - Amortized Cost, Gross Unrealized Gains and Losses and Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | $ 119,056 | $ 119,993 |
Gross unrealized Gains | 810 | 1,096 |
Gross unrealized Losses | 1,901 | 1,034 |
Fair value | 117,965 | 120,055 |
AOCI, transfers from AFS to HTM Securities, gross unrealized gains | 47 | 50 |
AOCI, transfers from AFS to HTM Securities, gross unrealized losses | 107 | 144 |
Available-for-sale | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 82,097 | 79,166 |
Gross unrealized Gains | 765 | 1,000 |
Gross unrealized Losses | 1,032 | 623 |
Fair value | 81,830 | 79,543 |
Available-for-sale | U.S. Treasury | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 17,108 | 15,159 |
Gross unrealized Gains | 120 | 264 |
Gross unrealized Losses | 274 | 160 |
Fair value | 16,954 | 15,263 |
Available-for-sale | U.S. government agencies | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 1,179 | 917 |
Gross unrealized Gains | 0 | 1 |
Gross unrealized Losses | 25 | 10 |
Fair value | 1,154 | 908 |
Available-for-sale | State and political subdivisions | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 2,739 | 2,949 |
Gross unrealized Gains | 22 | 31 |
Gross unrealized Losses | 35 | 23 |
Fair value | 2,726 | 2,957 |
Available-for-sale | Agency RMBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 24,351 | 24,002 |
Gross unrealized Gains | 95 | 108 |
Gross unrealized Losses | 410 | 291 |
Fair value | 24,036 | 23,819 |
Available-for-sale | Non-agency RMBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 1,175 | 1,265 |
Gross unrealized Gains | 303 | 317 |
Gross unrealized Losses | 2 | 4 |
Fair value | 1,476 | 1,578 |
Available-for-sale | Non-agency RMBS | Grantor Trust | ||
Gain (Loss) on Investments [Line Items] | ||
Fair value | 1,019 | 1,091 |
Available-for-sale | Other RMBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 149 | 152 |
Gross unrealized Gains | 3 | 3 |
Gross unrealized Losses | 6 | 6 |
Fair value | 146 | 149 |
Available-for-sale | Commercial MBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 1,391 | 1,360 |
Gross unrealized Gains | 2 | 6 |
Gross unrealized Losses | 20 | 6 |
Fair value | 1,373 | 1,360 |
Available-for-sale | Agency commercial MBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 9,659 | 8,793 |
Gross unrealized Gains | 14 | 36 |
Gross unrealized Losses | 161 | 67 |
Fair value | 9,512 | 8,762 |
Available-for-sale | CLOs | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 3,121 | 2,898 |
Gross unrealized Gains | 10 | 12 |
Gross unrealized Losses | 2 | 1 |
Fair value | 3,129 | 2,909 |
Available-for-sale | Other asset-backed securities | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 277 | 1,040 |
Gross unrealized Gains | 1 | 3 |
Gross unrealized Losses | 0 | 0 |
Fair value | 278 | 1,043 |
Available-for-sale | Foreign covered bonds | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 2,722 | 2,520 |
Gross unrealized Gains | 15 | 18 |
Gross unrealized Losses | 18 | 9 |
Fair value | 2,719 | 2,529 |
Available-for-sale | Corporate bonds | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 1,236 | 1,249 |
Gross unrealized Gains | 11 | 17 |
Gross unrealized Losses | 25 | 11 |
Fair value | 1,222 | 1,255 |
Available-for-sale | Sovereign debt/sovereign guaranteed | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 13,100 | 12,405 |
Gross unrealized Gains | 164 | 175 |
Gross unrealized Losses | 30 | 23 |
Fair value | 13,234 | 12,557 |
Available-for-sale | Other debt securities | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 3,890 | 3,494 |
Gross unrealized Gains | 5 | 9 |
Gross unrealized Losses | 24 | 12 |
Fair value | 3,871 | 3,491 |
Available-for-sale | Money market funds | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 963 | |
Gross unrealized Gains | 0 | |
Gross unrealized Losses | 0 | |
Fair value | 963 | |
Held-to-maturity | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 36,959 | 40,827 |
Gross unrealized Gains | 45 | 96 |
Gross unrealized Losses | 869 | 411 |
Fair value | 36,135 | 40,512 |
Held-to-maturity | U.S. Treasury | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 6,598 | 9,792 |
Gross unrealized Gains | 3 | 6 |
Gross unrealized Losses | 102 | 56 |
Fair value | 6,499 | 9,742 |
Held-to-maturity | U.S. government agencies | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 1,503 | 1,653 |
Gross unrealized Gains | 0 | 0 |
Gross unrealized Losses | 17 | 12 |
Fair value | 1,486 | 1,641 |
Held-to-maturity | State and political subdivisions | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 17 | 17 |
Gross unrealized Gains | 0 | 0 |
Gross unrealized Losses | 1 | 1 |
Fair value | 16 | 16 |
Held-to-maturity | Agency RMBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 25,762 | 26,208 |
Gross unrealized Gains | 10 | 51 |
Gross unrealized Losses | 715 | 332 |
Fair value | 25,057 | 25,927 |
Held-to-maturity | Non-agency RMBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 54 | 57 |
Gross unrealized Gains | 4 | 5 |
Gross unrealized Losses | 0 | 0 |
Fair value | 58 | 62 |
Held-to-maturity | Other RMBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 65 | 65 |
Gross unrealized Gains | 2 | 0 |
Gross unrealized Losses | 0 | 1 |
Fair value | 67 | 64 |
Held-to-maturity | Commercial MBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 5 | 6 |
Gross unrealized Gains | 0 | 0 |
Gross unrealized Losses | 0 | 0 |
Fair value | 5 | 6 |
Held-to-maturity | Agency commercial MBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 1,327 | 1,324 |
Gross unrealized Gains | 0 | 2 |
Gross unrealized Losses | 34 | 9 |
Fair value | 1,293 | 1,317 |
Held-to-maturity | Foreign covered bonds | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 86 | 84 |
Gross unrealized Gains | 1 | 2 |
Gross unrealized Losses | 0 | 0 |
Fair value | 87 | 86 |
Held-to-maturity | Sovereign debt/sovereign guaranteed | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 1,513 | 1,593 |
Gross unrealized Gains | 25 | 30 |
Gross unrealized Losses | 0 | 0 |
Fair value | 1,538 | 1,623 |
Held-to-maturity | Other debt securities | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 29 | 28 |
Gross unrealized Gains | 0 | 0 |
Gross unrealized Losses | 0 | 0 |
Fair value | $ 29 | $ 28 |
Securities - Net Securities Gai
Securities - Net Securities Gains (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Securities [Abstract] | |||
Realized gross gains | $ 2 | $ 13 | $ 11 |
Realized gross losses | (51) | (38) | 0 |
Recognized gross impairments | 0 | (1) | (1) |
Net securities (losses) gains | $ (49) | $ (26) | $ 10 |
Securities - Fair Value of Inve
Securities - Fair Value of Investments with Continuous Unrealized Loss Position (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | $ 54,247 | $ 43,557 |
Less than 12 months Unrealized losses | 1,011 | 403 |
12 months or more Fair value | 23,983 | 27,844 |
12 months or more Unrealized losses | 890 | 631 |
Total Fair value | 78,230 | 71,401 |
Total Unrealized losses | 1,901 | 1,034 |
AOCI, transfers from AFS to HTM Securities, gross unrealized losses, greater than 12 months | 107 | 144 |
AOCI, transfers from AFS to HTM Securities, gross unrealized losses, less than 12 months | 0 | 0 |
Available-for-sale | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 33,690 | 26,182 |
Less than 12 months Unrealized losses | 554 | 270 |
12 months or more Fair value | 11,203 | 11,666 |
12 months or more Unrealized losses | 478 | 353 |
Total Fair value | 44,893 | 37,848 |
Total Unrealized losses | 1,032 | 623 |
Available-for-sale | U.S. Treasury | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 9,344 | 7,429 |
Less than 12 months Unrealized losses | 149 | 131 |
12 months or more Fair value | 2,686 | 2,175 |
12 months or more Unrealized losses | 125 | 29 |
Total Fair value | 12,030 | 9,604 |
Total Unrealized losses | 274 | 160 |
Available-for-sale | U.S. government agencies | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 924 | 588 |
Less than 12 months Unrealized losses | 20 | 6 |
12 months or more Fair value | 120 | 160 |
12 months or more Unrealized losses | 5 | 4 |
Total Fair value | 1,044 | 748 |
Total Unrealized losses | 25 | 10 |
Available-for-sale | State and political subdivisions | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 740 | 732 |
Less than 12 months Unrealized losses | 7 | 3 |
12 months or more Fair value | 475 | 518 |
12 months or more Unrealized losses | 28 | 20 |
Total Fair value | 1,215 | 1,250 |
Total Unrealized losses | 35 | 23 |
Available-for-sale | Agency RMBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 10,067 | 8,567 |
Less than 12 months Unrealized losses | 175 | 66 |
12 months or more Fair value | 5,470 | 5,834 |
12 months or more Unrealized losses | 235 | 225 |
Total Fair value | 15,537 | 14,401 |
Total Unrealized losses | 410 | 291 |
Available-for-sale | Non-agency RMBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 20 | 20 |
Less than 12 months Unrealized losses | 0 | 0 |
12 months or more Fair value | 134 | 149 |
12 months or more Unrealized losses | 2 | 4 |
Total Fair value | 154 | 169 |
Total Unrealized losses | 2 | 4 |
Available-for-sale | Non-agency RMBS | Grantor Trust | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 11 | 7 |
Less than 12 months Unrealized losses | 1 | 1 |
12 months or more Fair value | 9 | 12 |
12 months or more Unrealized losses | 1 | 1 |
Available-for-sale | Other RMBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 71 | 71 |
Less than 12 months Unrealized losses | 3 | 4 |
12 months or more Fair value | 37 | 45 |
12 months or more Unrealized losses | 3 | 2 |
Total Fair value | 108 | 116 |
Total Unrealized losses | 6 | 6 |
Available-for-sale | Commercial MBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 655 | 476 |
Less than 12 months Unrealized losses | 15 | 3 |
12 months or more Fair value | 120 | 122 |
12 months or more Unrealized losses | 5 | 3 |
Total Fair value | 775 | 598 |
Total Unrealized losses | 20 | 6 |
Available-for-sale | Agency commercial MBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 5,107 | 3,077 |
Less than 12 months Unrealized losses | 105 | 28 |
12 months or more Fair value | 1,269 | 1,332 |
12 months or more Unrealized losses | 56 | 39 |
Total Fair value | 6,376 | 4,409 |
Total Unrealized losses | 161 | 67 |
Available-for-sale | CLOs | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 375 | 260 |
Less than 12 months Unrealized losses | 2 | 1 |
12 months or more Fair value | 45 | 0 |
12 months or more Unrealized losses | 0 | 0 |
Total Fair value | 420 | 260 |
Total Unrealized losses | 2 | 1 |
Available-for-sale | Other asset-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Unrealized losses | 0 | 0 |
Available-for-sale | Foreign covered bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 1,261 | 953 |
Less than 12 months Unrealized losses | 15 | 7 |
12 months or more Fair value | 136 | 116 |
12 months or more Unrealized losses | 3 | 2 |
Total Fair value | 1,397 | 1,069 |
Total Unrealized losses | 18 | 9 |
Available-for-sale | Corporate bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 753 | 274 |
Less than 12 months Unrealized losses | 23 | 2 |
12 months or more Fair value | 49 | 288 |
12 months or more Unrealized losses | 2 | 9 |
Total Fair value | 802 | 562 |
Total Unrealized losses | 25 | 11 |
Available-for-sale | Sovereign debt/sovereign guaranteed | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 2,322 | 1,880 |
Less than 12 months Unrealized losses | 22 | 12 |
12 months or more Fair value | 403 | 559 |
12 months or more Unrealized losses | 8 | 11 |
Total Fair value | 2,725 | 2,439 |
Total Unrealized losses | 30 | 23 |
Available-for-sale | Other debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 2,051 | 1,855 |
Less than 12 months Unrealized losses | 18 | 7 |
12 months or more Fair value | 259 | 368 |
12 months or more Unrealized losses | 6 | 5 |
Total Fair value | 2,310 | 2,223 |
Total Unrealized losses | 24 | 12 |
Held-to-maturity | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 20,557 | 17,375 |
Less than 12 months Unrealized losses | 457 | 133 |
12 months or more Fair value | 12,780 | 16,178 |
12 months or more Unrealized losses | 412 | 278 |
Total Fair value | 33,337 | 33,553 |
Total Unrealized losses | 869 | 411 |
Held-to-maturity | U.S. Treasury | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 3,629 | 6,389 |
Less than 12 months Unrealized losses | 66 | 41 |
12 months or more Fair value | 2,587 | 2,909 |
12 months or more Unrealized losses | 36 | 15 |
Total Fair value | 6,216 | 9,298 |
Total Unrealized losses | 102 | 56 |
Held-to-maturity | U.S. government agencies | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 556 | 791 |
Less than 12 months Unrealized losses | 9 | 4 |
12 months or more Fair value | 930 | 850 |
12 months or more Unrealized losses | 8 | 8 |
Total Fair value | 1,486 | 1,641 |
Total Unrealized losses | 17 | 12 |
Held-to-maturity | State and political subdivisions | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 0 | 0 |
Less than 12 months Unrealized losses | 0 | 0 |
12 months or more Fair value | 4 | 4 |
12 months or more Unrealized losses | 1 | 1 |
Total Fair value | 4 | 4 |
Total Unrealized losses | 1 | 1 |
Held-to-maturity | Agency RMBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 15,166 | 9,458 |
Less than 12 months Unrealized losses | 352 | 81 |
12 months or more Fair value | 9,201 | 12,305 |
12 months or more Unrealized losses | 363 | 251 |
Total Fair value | 24,367 | 21,763 |
Total Unrealized losses | 715 | 332 |
Held-to-maturity | Non-agency RMBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Unrealized losses | 0 | 0 |
Held-to-maturity | Other RMBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 0 | |
Less than 12 months Unrealized losses | 0 | |
12 months or more Fair value | 50 | |
12 months or more Unrealized losses | 1 | |
Total Fair value | 50 | |
Total Unrealized losses | 0 | 1 |
Held-to-maturity | Commercial MBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Unrealized losses | 0 | 0 |
Held-to-maturity | Agency commercial MBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 1,206 | 737 |
Less than 12 months Unrealized losses | 30 | 7 |
12 months or more Fair value | 58 | 60 |
12 months or more Unrealized losses | 4 | 2 |
Total Fair value | 1,264 | 797 |
Total Unrealized losses | 34 | 9 |
Held-to-maturity | Foreign covered bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Unrealized losses | 0 | 0 |
Held-to-maturity | Sovereign debt/sovereign guaranteed | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Unrealized losses | 0 | 0 |
Held-to-maturity | Other debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Unrealized losses | $ 0 | $ 0 |
Securities - Maturity Distribut
Securities - Maturity Distribution and Yield of Investment Securities Portfolio (Detail) $ in Millions | Mar. 31, 2018USD ($) |
Securities available-for-sale: | |
One year or less | $ 10,592 |
Over 1 through 5 years | 20,803 |
Over 5 through 10 years | 6,680 |
Over 10 years | 3,805 |
Total | 81,830 |
Securities held-to-maturity: | |
One year or less | 3,084 |
Over 1 through 5 years | 5,386 |
Over 5 through 10 years | 1,262 |
Over 10 years | 14 |
Total | 36,959 |
Mortgage-backed securities | |
Securities available-for-sale: | |
Without single maturity date | 36,543 |
Securities held-to-maturity: | |
Mortgage-backed securities | 27,213 |
Asset-backed securities | |
Securities available-for-sale: | |
Without single maturity date | 3,407 |
U.S. Treasury | |
Securities available-for-sale: | |
One year or less | 5,093 |
Over 1 through 5 years | 5,851 |
Over 5 through 10 years | 2,606 |
Over 10 years | 3,404 |
Total | $ 16,954 |
Securities available-for-sale (Yield): | |
One year or less | 1.67% |
Over 1 through 5 years | 1.89% |
Over 5 through 10 years | 2.07% |
Over 10 years | 3.11% |
Total | 2.10% |
Securities held-to-maturity: | |
One year or less | $ 1,971 |
Over 1 through 5 years | 3,918 |
Over 5 through 10 years | 709 |
Over 10 years | 0 |
Total | $ 6,598 |
Securities held-to-maturity (Yield): | |
One year or less | 1.10% |
Over 1 through 5 years | 1.78% |
Over 5 through 10 years | 1.79% |
Over 10 years | 0.00% |
Total | 1.57% |
U.S. government agencies | |
Securities available-for-sale: | |
One year or less | $ 16 |
Over 1 through 5 years | 389 |
Over 5 through 10 years | 749 |
Over 10 years | 0 |
Total | $ 1,154 |
Securities available-for-sale (Yield): | |
One year or less | 2.16% |
Over 1 through 5 years | 2.09% |
Over 5 through 10 years | 2.59% |
Over 10 years | 0.00% |
Total | 2.41% |
Securities held-to-maturity: | |
One year or less | $ 506 |
Over 1 through 5 years | 997 |
Over 5 through 10 years | 0 |
Over 10 years | 0 |
Total | $ 1,503 |
Securities held-to-maturity (Yield): | |
One year or less | 1.13% |
Over 1 through 5 years | 1.67% |
Over 5 through 10 years | 0.00% |
Over 10 years | 0.00% |
Total | 1.48% |
State and political subdivisions | |
Securities available-for-sale: | |
One year or less | $ 380 |
Over 1 through 5 years | 1,445 |
Over 5 through 10 years | 709 |
Over 10 years | 192 |
Total | $ 2,726 |
Securities available-for-sale (Yield): | |
One year or less | 2.04% |
Over 1 through 5 years | 2.88% |
Over 5 through 10 years | 2.69% |
Over 10 years | 2.67% |
Total | 2.70% |
Securities held-to-maturity: | |
One year or less | $ 0 |
Over 1 through 5 years | 2 |
Over 5 through 10 years | 1 |
Over 10 years | 14 |
Total | $ 17 |
Securities held-to-maturity (Yield): | |
One year or less | 0.00% |
Over 1 through 5 years | 5.68% |
Over 5 through 10 years | 5.71% |
Over 10 years | 4.76% |
Total | 4.94% |
Other bonds, notes and debentures | |
Securities available-for-sale: | |
One year or less | $ 5,103 |
Over 1 through 5 years | 13,118 |
Over 5 through 10 years | 2,616 |
Over 10 years | 209 |
Total | $ 21,046 |
Securities available-for-sale (Yield): | |
One year or less | 1.12% |
Over 1 through 5 years | 1.05% |
Over 5 through 10 years | 0.80% |
Over 10 years | 1.66% |
Total | 1.04% |
Securities held-to-maturity: | |
One year or less | $ 607 |
Over 1 through 5 years | 469 |
Over 5 through 10 years | 552 |
Over 10 years | 0 |
Total | $ 1,628 |
Securities held-to-maturity (Yield): | |
One year or less | 0.62% |
Over 1 through 5 years | 0.46% |
Over 5 through 10 years | 0.85% |
Over 10 years | 0.00% |
Total | 0.65% |
Mortgage/ asset-backed | |
Securities available-for-sale: | |
Total | $ 39,950 |
Securities available-for-sale (Yield): | |
Total | 2.98% |
Securities held-to-maturity: | |
Total | $ 27,213 |
Securities held-to-maturity (Yield): | |
Total | 2.82% |
Mortgage/ asset-backed | Mortgage-backed securities | |
Securities available-for-sale: | |
Without single maturity date | $ 36,543 |
Securities available-for-sale (Yield): | |
Without single maturity date | 3.00% |
Securities held-to-maturity: | |
Mortgage-backed securities | $ 27,213 |
Securities held-to-maturity (Yield): | |
Without single maturity date | 2.82% |
Mortgage/ asset-backed | Asset-backed securities | |
Securities available-for-sale: | |
Without single maturity date | $ 3,407 |
Securities available-for-sale (Yield): | |
Without single maturity date | 2.75% |
Securities - Projected Weighted
Securities - Projected Weighted-Average Default Rates and Loss Severities (Detail) - Recent Vintage | Mar. 31, 2018 | Dec. 31, 2017 |
Alt-A | ||
Gain (Loss) on Investments [Line Items] | ||
Default rate | 22.00% | 22.00% |
Severity | 52.00% | 53.00% |
Subprime | ||
Gain (Loss) on Investments [Line Items] | ||
Default rate | 38.00% | 38.00% |
Severity | 66.00% | 66.00% |
Prime | ||
Gain (Loss) on Investments [Line Items] | ||
Default rate | 13.00% | 13.00% |
Severity | 39.00% | 39.00% |
Securities - Pre-Tax Net Securi
Securities - Pre-Tax Net Securities Gains (Losses) by Type (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Net securities (losses) gains | $ (49) | $ (26) | $ 10 |
Agency RMBS | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Net securities (losses) gains | (42) | (17) | 1 |
U.S. Treasury | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Net securities (losses) gains | (4) | (16) | 0 |
Non-agency RMBS | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Net securities (losses) gains | 0 | 6 | (1) |
Other | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Net securities (losses) gains | $ (3) | $ 1 | $ 10 |
Securities - Debt Securities Cr
Securities - Debt Securities Credit Losses Roll Forward Recorded in Earnings (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other than Temporary Impairment [Roll Forward] | ||
Beginning balance | $ 84 | $ 88 |
Add: Initial OTTI credit losses | 0 | 0 |
Subsequent OTTI credit losses | 0 | 1 |
Less: Realized losses for securities sold | 4 | 0 |
Ending balance | $ 80 | $ 89 |
Securities - Narrative (Details
Securities - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | |||
Held-to-maturity securities transferred to available-for-sale, amortized cost | $ 1,117 | ||
Held-to-maturity securities transferred to available-for-sale, fair value | $ 1,070 | ||
AOCI, transfers from AFS to HTM Securities, gross unrealized losses | $ 107 | $ 144 |
Securities - Pledged assets (De
Securities - Pledged assets (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Securities [Abstract] | |||
Pledged assets | $ 111,000 | $ 111,000 | |
Pledged collateral for potential borrowings at the Federal Reserve Discount Window | 92,000 | 92,000 | |
Pledged asset, other not separately reported, potential borrowings at FHLB | 5,000 | 5,000 | |
Pledged securities | 93,000 | 96,000 | |
Pledged loans | 13,000 | 13,000 | |
Pledged trading assets | 4,000 | 2,000 | |
Financial instruments owned and pledged as collateral, amount eligible to be pledged by counterparty | 10,000 | 10,000 | |
Pledged interest-bearing deposits | 1,000 | ||
Pledged assets permitted to be sold or repledged | 78,000 | 86,000 | |
Market value of securities received as collateral that have been sold or repledged | 43,000 | 49,000 | |
Cash segregated under federal or other regulations | 1,236 | 1,751 | $ 2,900 |
Securities segregated under federal or other regulations | $ 1,000 | $ 1,000 |
Loans and asset quality - Loan
Loans and asset quality - Loan Distribution and Industry Concentrations (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 60,809 | $ 61,540 | |
Unearned income on lease financings | 382 | 394 | |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 2,609 | 2,911 | |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 4,893 | 4,900 | |
Financial institutions | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 12,793 | 13,051 | |
Wealth management loans and mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 16,401 | 16,528 | |
Other residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 680 | 708 | |
Overdrafts | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 5,800 | 5,100 | |
Margin loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 15,100 | 15,800 | |
Domestic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 47,538 | 48,895 | |
Domestic | Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 2,284 | 2,744 | |
Domestic | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 4,888 | 4,900 | |
Domestic | Financial institutions | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 5,782 | 5,568 | |
Domestic | Lease financings | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 749 | 772 | |
Domestic | Wealth management loans and mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 16,288 | 16,420 | |
Domestic | Other residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 680 | 708 | |
Domestic | Overdrafts | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 785 | 963 | $ 673 |
Domestic | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 1,089 | 1,131 | 1,119 |
Domestic | Margin loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 14,993 | 15,689 | $ 16,081 |
Foreign | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 13,271 | 12,645 | |
Foreign | Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 325 | 167 | |
Foreign | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 5 | 0 | |
Foreign | Financial institutions | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 7,011 | 7,483 | |
Foreign | Lease financings | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 533 | 527 | |
Foreign | Wealth management loans and mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 113 | 108 | |
Foreign | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 5,138 | 4,264 | |
Foreign | Margin loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 146 | $ 96 |
Loans and asset quality - Allow
Loans and asset quality - Allowance for Credit Losses Activity (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | $ 261 | $ 265 | $ 281 |
Charge-offs | 0 | 0 | (1) |
Recoveries | 0 | 2 | 1 |
Net recoveries | 0 | 2 | 0 |
Provision | (5) | (6) | (5) |
Ending balance | 256 | 261 | 276 |
Allowance for: | |||
Loan losses | 156 | 159 | 164 |
Lending-related commitments | 100 | 102 | 112 |
Individually evaluated for impairment: | |||
Loan balance | 5 | 6 | 5 |
Allowance for loan losses | 1 | 1 | 3 |
Collectively evaluated for impairment: | |||
Loan balance | 60,804 | 61,534 | 60,863 |
Allowance for loan losses | 155 | 158 | 161 |
Loans | 60,809 | 61,540 | |
Domestic | |||
Collectively evaluated for impairment: | |||
Loans | 47,538 | 48,895 | |
Commercial | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 77 | 81 | 82 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net recoveries | 0 | 0 | 0 |
Provision | (2) | (4) | 0 |
Ending balance | 75 | 77 | 82 |
Allowance for: | |||
Loan losses | 23 | 24 | 24 |
Lending-related commitments | 52 | 53 | 58 |
Individually evaluated for impairment: | |||
Loan balance | 0 | 0 | 0 |
Allowance for loan losses | 0 | 0 | 0 |
Collectively evaluated for impairment: | |||
Loan balance | 2,284 | 2,744 | 2,543 |
Allowance for loan losses | 23 | 24 | 24 |
Loans | 2,609 | 2,911 | |
Commercial | Domestic | |||
Collectively evaluated for impairment: | |||
Loans | 2,284 | 2,744 | |
Commercial real estate | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 76 | 75 | 73 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net recoveries | 0 | 0 | 0 |
Provision | (1) | 1 | 0 |
Ending balance | 75 | 76 | 73 |
Allowance for: | |||
Loan losses | 58 | 58 | 54 |
Lending-related commitments | 17 | 18 | 19 |
Individually evaluated for impairment: | |||
Loan balance | 0 | 0 | 0 |
Allowance for loan losses | 0 | 0 | 0 |
Collectively evaluated for impairment: | |||
Loan balance | 4,888 | 4,900 | 4,698 |
Allowance for loan losses | 58 | 58 | 54 |
Loans | 4,893 | 4,900 | |
Commercial real estate | Domestic | |||
Collectively evaluated for impairment: | |||
Loans | 4,888 | 4,900 | |
Financial institutions | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 23 | 23 | 26 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net recoveries | 0 | 0 | 0 |
Provision | (1) | 0 | (3) |
Ending balance | 22 | 23 | 23 |
Allowance for: | |||
Loan losses | 8 | 7 | 5 |
Lending-related commitments | 14 | 16 | 18 |
Individually evaluated for impairment: | |||
Loan balance | 1 | 1 | 0 |
Allowance for loan losses | 0 | 0 | 0 |
Collectively evaluated for impairment: | |||
Loan balance | 5,781 | 5,567 | 5,387 |
Allowance for loan losses | 8 | 7 | 5 |
Loans | 12,793 | 13,051 | |
Financial institutions | Domestic | |||
Collectively evaluated for impairment: | |||
Loans | 5,782 | 5,568 | |
Lease financings | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 8 | 9 | 13 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net recoveries | 0 | 0 | 0 |
Provision | (1) | (1) | (3) |
Ending balance | 7 | 8 | 10 |
Allowance for: | |||
Loan losses | 7 | 8 | 10 |
Lending-related commitments | 0 | 0 | 0 |
Individually evaluated for impairment: | |||
Loan balance | 0 | 0 | 0 |
Allowance for loan losses | 0 | 0 | 0 |
Collectively evaluated for impairment: | |||
Loan balance | 749 | 772 | 846 |
Allowance for loan losses | 7 | 8 | 10 |
Lease financings | Domestic | |||
Collectively evaluated for impairment: | |||
Loans | 749 | 772 | |
Wealth management loans and mortgages | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 22 | 21 | 23 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net recoveries | 0 | 0 | 0 |
Provision | 1 | 1 | 3 |
Ending balance | 23 | 22 | 26 |
Allowance for: | |||
Loan losses | 19 | 18 | 22 |
Lending-related commitments | 4 | 4 | 4 |
Individually evaluated for impairment: | |||
Loan balance | 4 | 5 | 5 |
Allowance for loan losses | 1 | 1 | 3 |
Collectively evaluated for impairment: | |||
Loan balance | 16,284 | 16,415 | 15,904 |
Allowance for loan losses | 18 | 17 | 19 |
Loans | 16,401 | 16,528 | |
Wealth management loans and mortgages | Domestic | |||
Collectively evaluated for impairment: | |||
Loans | 16,288 | 16,420 | |
Other residential mortgages | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 20 | 21 | 28 |
Charge-offs | 0 | 0 | (1) |
Recoveries | 0 | 2 | 1 |
Net recoveries | 0 | 2 | 0 |
Provision | (1) | (3) | (3) |
Ending balance | 19 | 20 | 25 |
Allowance for: | |||
Loan losses | 19 | 20 | 25 |
Lending-related commitments | 0 | 0 | 0 |
Individually evaluated for impairment: | |||
Loan balance | 0 | 0 | 0 |
Allowance for loan losses | 0 | 0 | 0 |
Collectively evaluated for impairment: | |||
Loan balance | 680 | 708 | 817 |
Allowance for loan losses | 19 | 20 | 25 |
Loans | 680 | 708 | |
Other residential mortgages | Domestic | |||
Collectively evaluated for impairment: | |||
Loans | 680 | 708 | |
All other | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net recoveries | 0 | 0 | 0 |
Provision | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
Allowance for: | |||
Loan losses | 0 | 0 | 0 |
Lending-related commitments | 0 | 0 | 0 |
Individually evaluated for impairment: | |||
Loan balance | 0 | 0 | 0 |
Allowance for loan losses | 0 | 0 | 0 |
Collectively evaluated for impairment: | |||
Loan balance | 16,867 | 17,783 | 17,873 |
Allowance for loan losses | 0 | 0 | 0 |
Foreign | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 35 | 35 | 36 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net recoveries | 0 | 0 | 0 |
Provision | 0 | 0 | 1 |
Ending balance | 35 | 35 | 37 |
Allowance for: | |||
Loan losses | 22 | 24 | 24 |
Lending-related commitments | 13 | 11 | 13 |
Individually evaluated for impairment: | |||
Loan balance | 0 | 0 | 0 |
Allowance for loan losses | 0 | 0 | 0 |
Collectively evaluated for impairment: | |||
Loan balance | 13,271 | 12,645 | 12,795 |
Allowance for loan losses | 22 | 24 | 24 |
Overdrafts | |||
Collectively evaluated for impairment: | |||
Loans | 5,800 | 5,100 | |
Overdrafts | Domestic | |||
Collectively evaluated for impairment: | |||
Loans | 785 | 963 | 673 |
Margin loans | |||
Collectively evaluated for impairment: | |||
Loans | 15,100 | 15,800 | |
Margin loans | Domestic | |||
Collectively evaluated for impairment: | |||
Loans | 14,993 | 15,689 | 16,081 |
Other | Domestic | |||
Collectively evaluated for impairment: | |||
Loans | $ 1,089 | $ 1,131 | $ 1,119 |
Loans and asset quality - Nonpe
Loans and asset quality - Nonperforming Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||
Total nonperforming loans | $ 81 | $ 86 |
Other assets owned | 4 | 4 |
Total nonperforming assets | 85 | 90 |
Domestic | Other residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Total nonperforming loans | 74 | 78 |
Domestic | Wealth management loans and mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Total nonperforming loans | 7 | 7 |
Domestic | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Total nonperforming loans | $ 0 | $ 1 |
Loans and asset quality - Lost
Loans and asset quality - Lost Interest (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Receivables [Abstract] | |||
Amount by which interest income would have increased if nonperforming loans at period-end had been performing for the entire period | $ 1 | $ 1 | $ 1 |
Loans and asset quality - Impai
Loans and asset quality - Impaired Loans (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Receivables [Abstract] | |||
Total impaired loans, average recorded investment (less than) | $ 10 | $ 10 | $ 10 |
Impaired loans with an allowance, related allowance | $ 1 | $ 1 |
Loans and asset quality - Infor
Loans and asset quality - Information about Past Due Loans (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 122 | $ 117 |
30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 111 | 102 |
60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 6 | 10 |
Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 5 | 5 |
Domestic | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 62 | 44 |
Domestic | Commercial real estate | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 62 | 44 |
Domestic | Commercial real estate | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Domestic | Commercial real estate | Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Domestic | Wealth management loans and mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 37 | 44 |
Domestic | Wealth management loans and mortgages | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 36 | 39 |
Domestic | Wealth management loans and mortgages | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1 | 5 |
Domestic | Wealth management loans and mortgages | Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Domestic | Other residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 23 | 28 |
Domestic | Other residential mortgages | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 13 | 18 |
Domestic | Other residential mortgages | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 5 | 5 |
Domestic | Other residential mortgages | Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 5 | 5 |
Domestic | Financial institutions | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 1 |
Domestic | Financial institutions | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 1 |
Domestic | Financial institutions | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Domestic | Financial institutions | Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 0 | $ 0 |
Loans and asset quality - TDRs
Loans and asset quality - TDRs (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Receivables [Abstract] | |||
Outstanding recorded investment post-modification (less than) | $ 1 | $ 2 | $ 6 |
Loans and asset quality - Credi
Loans and asset quality - Credit Risk Profile by Grade (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 60,809 | $ 61,540 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,609 | 2,911 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,893 | 4,900 |
Financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 12,793 | 13,051 |
Wealth management mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 9,351 | 9,301 |
Wealth management loans and mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 16,401 | 16,528 |
Investment grade | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,427 | 2,685 |
Investment grade | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,203 | 4,277 |
Investment grade | Financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 9,716 | 10,021 |
Investment grade | Wealth management loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,933 | 7,042 |
Non-investment grade | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 182 | 226 |
Non-investment grade | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 690 | 623 |
Non-investment grade | Financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,077 | 3,030 |
Non-investment grade | Wealth management loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 117 | $ 185 |
Loans and asset quality - Addit
Loans and asset quality - Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018USD ($)class_of_receivableSegment | Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of portfolio segments | Segment | 3 | ||
Number of classes of financing receivables | class_of_receivable | 6 | ||
Loans | $ 60,809 | $ 61,540 | |
Domestic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 47,538 | 48,895 | |
Other residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 680 | 708 | |
Other residential mortgages | Domestic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 680 | 708 | |
Purchased mortgages | $ 160 | ||
Purchased residential mortgages, loan to value ratio | 76.00% | ||
Percentage of purchased residential mortgages that were at least 60 days delinquent | 12.00% | ||
Wealth management mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan to value ratio at origination | 62.00% | ||
Percentage of past due mortgages (less than) | 1.00% | ||
Loans | $ 9,351 | 9,301 | |
Wealth management mortgages | California | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Geographic concentrations | 24.00% | ||
Wealth management mortgages | New York | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Geographic concentrations | 18.00% | ||
Wealth management mortgages | Massachusetts | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Geographic concentrations | 11.00% | ||
Wealth management mortgages | Florida | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Geographic concentrations | 8.00% | ||
Wealth management mortgages | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Geographic concentrations | 39.00% | ||
Wealth management loans and mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 16,401 | 16,528 | |
Wealth management loans and mortgages | Domestic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 16,288 | 16,420 | |
Overdrafts | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 5,800 | 5,100 | |
Number of business days in which overdrafts are generally repaid | 2 days | ||
Overdrafts | Domestic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 785 | 963 | $ 673 |
Margin loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 15,100 | 15,800 | |
Margin loans | Domestic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 14,993 | $ 15,689 | $ 16,081 |
Margin loans | Domestic | Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Required daily collateral margin (in excess of) | 100.00% |
Goodwill and intangible asset70
Goodwill and intangible assets - Goodwill (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 17,564 | $ 17,316 |
Acquisition (dispositions) | (52) | |
Foreign currency translation | 84 | 39 |
Ending balance | 17,596 | 17,355 |
Investment Services | ||
Goodwill [Roll Forward] | ||
Beginning balance | 8,389 | 8,269 |
Acquisition (dispositions) | 0 | |
Foreign currency translation | 31 | 18 |
Ending balance | 8,420 | 8,287 |
Investment Management | ||
Goodwill [Roll Forward] | ||
Beginning balance | 9,128 | 9,000 |
Acquisition (dispositions) | (52) | |
Foreign currency translation | 53 | 21 |
Ending balance | 9,129 | 9,021 |
Other | ||
Goodwill [Roll Forward] | ||
Beginning balance | 47 | 47 |
Acquisition (dispositions) | 0 | |
Foreign currency translation | 0 | 0 |
Ending balance | $ 47 | $ 47 |
Goodwill and intangible asset71
Goodwill and intangible assets - Intangible Assets by Business Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Intangible Assets [Roll Forward] | |||
Beginning Balance | $ 3,411 | $ 3,598 | |
Amortization | (49) | $ (52) | (52) |
Foreign currency translation | 8 | 3 | |
Ending Balance | 3,370 | 3,411 | 3,549 |
Investment Services | |||
Intangible Assets [Roll Forward] | |||
Beginning Balance | 888 | 1,032 | |
Amortization | (36) | (37) | |
Foreign currency translation | 0 | 0 | |
Ending Balance | 852 | 888 | 995 |
Investment Management | |||
Intangible Assets [Roll Forward] | |||
Beginning Balance | 1,674 | 1,717 | |
Amortization | (13) | (15) | |
Foreign currency translation | 8 | 3 | |
Ending Balance | 1,669 | 1,674 | 1,705 |
Other | |||
Intangible Assets [Roll Forward] | |||
Beginning Balance | 849 | 849 | |
Amortization | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Ending Balance | $ 849 | $ 849 | $ 849 |
Goodwill and intangible asset72
Goodwill and intangible assets - Intangible Assets by Type (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | $ 6,213 | $ 6,193 | ||
Accumulated amortization | (2,843) | (2,782) | ||
Net carrying amount | 3,370 | 3,411 | $ 3,549 | $ 3,598 |
Finite-lived Intangible Assets | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | 3,578 | 3,564 | ||
Accumulated amortization | (2,843) | (2,782) | ||
Net carrying amount | $ 735 | 782 | ||
Finite-lived Intangible Assets | Weighted Average | ||||
Intangible Assets by Major Class [Line Items] | ||||
Remaining weighted- average amortization period | 10 years | |||
Finite-lived Intangible Assets | Customer contracts—Investment Services | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | $ 2,263 | 2,260 | ||
Accumulated amortization | (1,781) | (1,744) | ||
Net carrying amount | $ 482 | 516 | ||
Finite-lived Intangible Assets | Customer contracts—Investment Services | Weighted Average | ||||
Intangible Assets by Major Class [Line Items] | ||||
Remaining weighted- average amortization period | 10 years | |||
Finite-lived Intangible Assets | Customer relationships | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | $ 1,274 | 1,262 | ||
Accumulated amortization | (1,038) | (1,015) | ||
Net carrying amount | $ 236 | 247 | ||
Finite-lived Intangible Assets | Customer relationships | Weighted Average | ||||
Intangible Assets by Major Class [Line Items] | ||||
Remaining weighted- average amortization period | 11 years | |||
Finite-lived Intangible Assets | Other | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | $ 41 | 42 | ||
Accumulated amortization | (24) | (23) | ||
Net carrying amount | $ 17 | 19 | ||
Finite-lived Intangible Assets | Other | Weighted Average | ||||
Intangible Assets by Major Class [Line Items] | ||||
Remaining weighted- average amortization period | 4 years | |||
Indefinite-lived Intangible Assets | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | $ 2,635 | 2,629 | ||
Net carrying amount | 2,635 | 2,629 | ||
Indefinite-lived Intangible Assets | Tradenames | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | 1,335 | 1,334 | ||
Net carrying amount | 1,335 | 1,334 | ||
Indefinite-lived Intangible Assets | Customer relationships | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | 1,300 | 1,295 | ||
Net carrying amount | $ 1,300 | $ 1,295 |
Goodwill and intangible asset73
Goodwill and intangible assets - Estimated Annual Amortization Expense (Detail) $ in Millions | Mar. 31, 2018USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,018 | $ 181 |
2,019 | 116 |
2,020 | 102 |
2,021 | 79 |
2,022 | $ 60 |
Other assets - Components of Ot
Other assets - Components of Other Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Other Assets [Abstract] | |||
Corporate/bank-owned life insurance | $ 4,866 | $ 4,857 | |
Accounts receivable | 3,454 | 4,590 | |
Fails to deliver | 2,761 | 2,817 | |
Software | 1,515 | 1,499 | |
Prepaid pension assets | 1,471 | 1,416 | |
Income taxes receivable | 1,397 | 1,533 | |
Renewable energy investments | 1,354 | 1,368 | |
Equity in a joint venture and other investments | 1,080 | 1,083 | |
Qualified affordable housing project investments | 980 | 1,014 | |
Federal Reserve Bank stock | 477 | 477 | |
Prepaid expense | 472 | 395 | |
Seed capital | 301 | 288 | |
Fair value of hedging derivatives | 56 | 323 | |
Other | 1,454 | 1,369 | |
Total other assets | 21,638 | $ 23,020 | 23,029 |
Federal Home Loan Bank stock, at cost | $ 36 | $ 82 |
Other assets - Qualified Afford
Other assets - Qualified Affordable Housing Project Investments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Other Assets [Abstract] | |||
Qualified affordable housing project investments | $ 980 | $ 1,014 | |
Qualified affordable housing project investments, commitment | 455 | 486 | |
Qualified affordable housing project commitment - 2018 | 169 | ||
Qualified affordable housing project commitment - 2019 | 119 | ||
Qualified affordable housing project commitment - 2020 | 107 | ||
Qualified affordable housing project commitment - 2021 | 42 | ||
Qualified affordable housing project commitment - 2022 | 1 | ||
Qualified affordable housing project commitment - 2023 and thereafter | 17 | ||
Tax credits and other tax benefits | 40 | 41 | $ 38 |
Amortization expense included in the provision for income taxes | $ 33 | $ 69 | $ 27 |
Other assets - Seed Capital and
Other assets - Seed Capital and Private Equity Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Fair value | $ 160 | $ 154 |
Unfunded commitments | 39 | 43 |
Seed capital | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Fair value | 42 | 40 |
Unfunded commitments | $ 0 | $ 1 |
Redemption frequency | Daily-quarterly | Daily-quarterly |
Private equity investments | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Fair value | $ 59 | $ 55 |
Unfunded commitments | 39 | 42 |
Other corporate investments | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Fair value | 59 | $ 59 |
Unfunded commitments | $ 0 | |
Redemption frequency | Daily-quarterly | Daily-quarterly |
Minimum | Seed capital | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Redemption notice period | 1 day | 1 day |
Minimum | Other corporate investments | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Redemption notice period | 1 day | 1 day |
Maximum | Seed capital | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Redemption notice period | 90 days | 90 days |
Maximum | Other corporate investments | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Redemption notice period | 95 days | 95 days |
Contract revenue - Disaggregati
Contract revenue - Disaggregation of Contract Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | $ 2,981 | ||
Fee and other revenue - not in scope of ASC 606 | 289 | ||
Total fee and other revenue | 3,270 | $ 2,860 | $ 3,018 |
Asset servicing | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 1,142 | ||
Clearing services | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 414 | ||
Issuer services | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 260 | ||
Treasury services | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 138 | ||
Total investment services fees | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 1,954 | ||
Investment management and performance fees | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 956 | ||
Financing-related fees | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 17 | ||
Distribution and servicing | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 36 | ||
Investment and other income | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 18 | ||
Investment Services | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 2,014 | ||
Fee and other revenue - not in scope of ASC 606 | 236 | ||
Total fee and other revenue | 2,250 | ||
Investment Services | Asset servicing | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 1,117 | ||
Investment Services | Clearing services | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 413 | ||
Investment Services | Issuer services | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 260 | ||
Investment Services | Treasury services | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 138 | ||
Investment Services | Total investment services fees | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 1,928 | ||
Investment Services | Investment management and performance fees | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 14 | ||
Investment Services | Financing-related fees | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 17 | ||
Investment Services | Distribution and servicing | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | (14) | ||
Investment Services | Investment and other income | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 69 | ||
Investment Management | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 966 | ||
Fee and other revenue - not in scope of ASC 606 | 46 | ||
Total fee and other revenue | 1,012 | ||
Investment Management | Asset servicing | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 25 | ||
Investment Management | Clearing services | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 0 | ||
Investment Management | Issuer services | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 0 | ||
Investment Management | Treasury services | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 0 | ||
Investment Management | Total investment services fees | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 25 | ||
Investment Management | Investment management and performance fees | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 942 | ||
Investment Management | Financing-related fees | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 0 | ||
Investment Management | Distribution and servicing | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 50 | ||
Investment Management | Investment and other income | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | (51) | ||
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 1 | ||
Fee and other revenue - not in scope of ASC 606 | 7 | ||
Total fee and other revenue | 8 | ||
Other | Asset servicing | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 0 | ||
Other | Clearing services | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 1 | ||
Other | Issuer services | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 0 | ||
Other | Treasury services | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 0 | ||
Other | Total investment services fees | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 1 | ||
Other | Investment management and performance fees | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 0 | ||
Other | Financing-related fees | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 0 | ||
Other | Distribution and servicing | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | 0 | ||
Other | Investment and other income | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue - contract revenue | $ 0 |
Contract revenue - Additional I
Contract revenue - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Jan. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with customer, asset | $ 2,900,000,000 | $ 3,900,000,000 |
Provision for allowances | 2,000,000 | |
Contract assets representing accrued revenues not yet billed | 45,000,000 | 30,000,000 |
Impairment of contract assets | 0 | |
Contract with customer, liability | 190,000,000 | $ 167,000,000 |
Contract with customer, liability, revenue recognized | 43,000,000 | |
Capitalized Contract Cost [Line Items] | ||
Capitalized contract cost, impairment | 0 | |
Incremental costs for obtaining contracts | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract costs | $ 109,000,000 | |
Capitalized contract cost, recognition period | 9 years | |
Capitalized contract cost, amortization | $ 5,000,000 | |
Costs to fulfill contract | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract costs | 15,000,000 | |
Capitalized contract cost, amortization | $ 1,000,000 | |
Costs to fulfill contract | Minimum | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract cost, recognition period | 7 years | |
Costs to fulfill contract | Maximum | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract cost, recognition period | 9 years |
Net interest revenue (Details)
Net interest revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Interest revenue | |||
Non-margin loans | $ 305 | $ 277 | $ 245 |
Margin loans | 115 | 94 | 75 |
Securities: | |||
Taxable | 581 | 530 | 461 |
Exempt from federal income taxes | 15 | 15 | 17 |
Total securities | 596 | 545 | 478 |
Deposits with banks | 42 | 37 | 22 |
Deposits with the Federal Reserve and other central banks | 126 | 102 | 57 |
Federal funds sold and securities purchased under resale agreements | 170 | 151 | 67 |
Trading assets | 27 | 13 | 16 |
Total interest revenue | 1,381 | 1,219 | 960 |
Interest expense | |||
Deposits | 117 | 64 | 9 |
Federal funds purchased and securities sold under repurchase agreements | 107 | 93 | 24 |
Trading liabilities | 9 | 1 | 2 |
Other borrowed funds | 9 | 13 | 2 |
Commercial paper | 12 | 11 | 5 |
Customer payables | 31 | 22 | 7 |
Long-term debt | 177 | 164 | 119 |
Total interest expense | 462 | 368 | 168 |
Net interest revenue | 919 | 851 | 792 |
Provision | (5) | (6) | (5) |
Net interest revenue after provision for credit losses | $ 924 | $ 857 | $ 797 |
Employee benefit plans (Details
Employee benefit plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Health care benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 2 | 2 |
Expected return on assets | (2) | (2) |
Other | (1) | (1) |
Net periodic benefit (credit) cost | (1) | (1) |
Domestic pension benefits | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 43 | 45 |
Expected return on assets | (85) | (81) |
Other | 17 | 17 |
Net periodic benefit (credit) cost | (25) | (19) |
Foreign pension benefits | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 7 | 7 |
Interest cost | 8 | 8 |
Expected return on assets | (15) | (12) |
Other | 6 | 9 |
Net periodic benefit (credit) cost | $ 6 | $ 12 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Provision (benefit) for income taxes | $ 282 | $ (453) | $ 269 |
Effective tax rate | 19.50% | 22.30% | |
Tax benefit related to US tax legislation | 710 | ||
Tax reserves | $ 130 | $ 128 | |
Impact on effective tax rate if tax reserves were unnecessary | 130 | ||
Accrued interest, related to income taxes in the balance sheet | 18 | ||
Additional tax expense related to interest | 1 | $ 2 | |
Reasonably possible decrease in uncertain tax positions within the next 12 months, if a re-evaluation is required | $ 38 |
Variable interest entities an82
Variable interest entities and securitization - Assets and Liabilities of VIEs (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Nonredeemable noncontrolling interests of consolidated investment management funds | $ 212 | $ 316 |
VME classification of carrying amount, assets | 55 | 84 |
VME classification of carrying amount, liabilities | 1 | 1 |
Noncontrolling interest in VME | 1 | 1 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Available-for-sale | 0 | 400 |
Trading assets | 753 | 516 |
Other assets, fair value | 253 | 215 |
Total assets | 1,006 | 1,131 |
Other liabilities | 374 | 369 |
Subtotal liabilities | 374 | 369 |
Nonredeemable noncontrolling interests of consolidated investment management funds | 212 | 316 |
Variable Interest Entity, Primary Beneficiary | Investment Management funds | ||
Variable Interest Entity [Line Items] | ||
Available-for-sale | 0 | 0 |
Trading assets | 353 | 516 |
Other assets, fair value | 253 | 215 |
Total assets | 606 | 731 |
Other liabilities | 11 | 2 |
Subtotal liabilities | 11 | 2 |
Nonredeemable noncontrolling interests of consolidated investment management funds | 212 | 316 |
Variable Interest Entity, Primary Beneficiary | Securitization | ||
Variable Interest Entity [Line Items] | ||
Available-for-sale | 0 | 400 |
Trading assets | 400 | 0 |
Other assets, fair value | 0 | 0 |
Total assets | 400 | 400 |
Other liabilities | 363 | 367 |
Subtotal liabilities | 363 | 367 |
Nonredeemable noncontrolling interests of consolidated investment management funds | $ 0 | $ 0 |
Variable interest entities an83
Variable interest entities and securitization - Non-consolidated VIEs (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 231 | $ 203 |
Liabilities | 0 | 0 |
Maximum loss exposure | 231 | 203 |
Other Assets and Liabilities, Net | ||
Variable Interest Entity [Line Items] | ||
Assets | 2,538 | 2,592 |
Liabilities | 455 | 486 |
Maximum loss exposure | $ 2,993 | $ 3,078 |
Preferred stock - Summary (Deta
Preferred stock - Summary (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 20, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||
Total shares issued and outstanding (shares) | 35,826 | 35,826 | |
Carrying value | $ 3,542 | $ 3,542 | |
Series A Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Dividend paid per share (usd per share) | $ 1,000 | ||
Per annum dividend rate | Greater of (i) three-month LIBOR plus 0.565% for the related distribution period; or (ii) 4.000% | ||
Per annum dividend rate | 4.00% | ||
Liquidation preference per share (usd per share) | $ 100,000 | ||
Total shares issued and outstanding (shares) | 5,001 | 5,001 | |
Carrying value | $ 500 | $ 500 | |
Depository share, portion of preferred stock share | 1.00% | ||
Series A Noncumulative Perpetual Preferred Stock | LIBOR | |||
Class of Stock [Line Items] | |||
Preferred stock, basis spread on variable rate | 0.565% | ||
Series C Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Dividend paid per share (usd per share) | $ 1,300 | ||
Preferred stock, dividend rate per depository share (usd per share) | $ 0.325 | ||
Per annum dividend rate | 5.20% | ||
Liquidation preference per share (usd per share) | $ 100,000 | ||
Total shares issued and outstanding (shares) | 5,825 | 5,825 | |
Carrying value | $ 568 | $ 568 | |
Depository share, portion of preferred stock share | 0.025% | ||
Series D Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Per annum dividend rate | 4.50% to but excluding June 20, 2023, then a floating rate equal to the three-month LIBOR plus 2.46% | ||
Per annum dividend rate | 4.50% | ||
Liquidation preference per share (usd per share) | $ 100,000 | ||
Total shares issued and outstanding (shares) | 5,000 | 5,000 | |
Carrying value | $ 494 | $ 494 | |
Depository share, portion of preferred stock share | 1.00% | ||
Series D Noncumulative Perpetual Preferred Stock | LIBOR | |||
Class of Stock [Line Items] | |||
Preferred stock, basis spread on variable rate | 2.46% | ||
Series E Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Per annum dividend rate | 4.95% to and including June 20, 2020, then a floating rate equal to the three-month LIBOR plus 3.42% | ||
Per annum dividend rate | 4.95% | ||
Liquidation preference per share (usd per share) | $ 100,000 | ||
Total shares issued and outstanding (shares) | 10,000 | 10,000 | |
Carrying value | $ 990 | $ 990 | |
Depository share, portion of preferred stock share | 1.00% | ||
Series E Noncumulative Perpetual Preferred Stock | LIBOR | |||
Class of Stock [Line Items] | |||
Preferred stock, basis spread on variable rate | 3.42% | ||
Series F Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Dividend paid per share (usd per share) | $ 2,312.50 | ||
Preferred stock, dividend rate per depository share (usd per share) | $ 23.125 | ||
Per annum dividend rate | 4.625% to and including Sept. 20, 2026, then a floating rate equal to the three-month LIBOR plus 3.131% | ||
Per annum dividend rate | 4.625% | ||
Liquidation preference per share (usd per share) | $ 100,000 | ||
Total shares issued and outstanding (shares) | 10,000 | 10,000 | |
Carrying value | $ 990 | $ 990 | |
Series F Noncumulative Perpetual Preferred Stock | LIBOR | |||
Class of Stock [Line Items] | |||
Preferred stock, basis spread on variable rate | 3.131% |
Preferred stock - Narrative (De
Preferred stock - Narrative (Details) - $ / shares | Mar. 20, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 | |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 | |
Series A Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Dividend paid per share (usd per share) | $ 1,000 | ||
Preferred stock, dividend rate per normal preferred capital security (usd per share) | $ 10 | ||
Depository share, portion of preferred stock share | 1.00% | ||
Series C Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Dividend paid per share (usd per share) | $ 1,300 | ||
Preferred stock, dividend rate per depository share (usd per share) | $ 0.325 | ||
Depository share, portion of preferred stock share | 0.025% | ||
Series D Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Depository share, portion of preferred stock share | 1.00% | ||
Series E Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Depository share, portion of preferred stock share | 1.00% | ||
Series F Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Dividend paid per share (usd per share) | $ 2,312.50 | ||
Preferred stock, dividend rate per depository share (usd per share) | $ 23.125 |
Other comprehensive income (l86
Other comprehensive income (loss) - Components (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | ||
Pre-tax amount | ||||
Total other comprehensive income (loss), Pre-tax amount | $ (73) | $ 473 | $ 293 | |
Tax (expense) benefit | ||||
Total other comprehensive income (loss), Tax (expense) benefit | 94 | (47) | (50) | |
After-tax amount | ||||
Total other comprehensive income (loss), net of tax | [1] | 21 | 426 | 243 |
Foreign currency translation | ||||
Pre-tax amount | ||||
Other comprehensive income (loss), Pre-tax amount | 201 | 93 | 96 | |
Total other comprehensive income (loss), Pre-tax amount | 201 | 93 | 96 | |
Tax (expense) benefit | ||||
Other comprehensive income (loss), Tax (expense) benefit | 43 | 19 | 29 | |
Total other comprehensive income (loss), Tax (expense) benefit | 43 | 19 | 29 | |
After-tax amount | ||||
Other comprehensive income (loss), After-tax amount | 244 | 112 | 125 | |
Total other comprehensive income (loss), net of tax | 244 | 112 | 125 | |
Unrealized gain (loss) on assets available-for-sale | ||||
Pre-tax amount | ||||
Other comprehensive income (loss), Pre-tax amount | (342) | (120) | 164 | |
Reclassification adjustment, Pre-tax amount | 49 | 26 | (10) | |
Total other comprehensive income (loss), Pre-tax amount | (293) | (94) | 154 | |
Tax (expense) benefit | ||||
Other comprehensive income (loss), Tax (expense) benefit | 67 | 60 | (70) | |
Reclassification adjustment, Tax (expense) benefit | (12) | (10) | 4 | |
Total other comprehensive income (loss), Tax (expense) benefit | 55 | 50 | (66) | |
After-tax amount | ||||
Other comprehensive income (loss), After-tax amount | (275) | (60) | 94 | |
Reclassification adjustment, After-tax amount | 37 | 16 | (6) | |
Total other comprehensive income (loss), net of tax | (238) | (44) | 88 | |
Defined benefit plans | ||||
Pre-tax amount | ||||
Total other comprehensive income (loss), Pre-tax amount | 22 | 478 | 28 | |
Tax (expense) benefit | ||||
Total other comprehensive income (loss), Tax (expense) benefit | (5) | (118) | (8) | |
After-tax amount | ||||
Total other comprehensive income (loss), net of tax | 17 | 360 | 20 | |
Net gain (loss) arising during the period | ||||
Pre-tax amount | ||||
Other comprehensive income (loss), Pre-tax amount | 0 | 451 | 3 | |
Tax (expense) benefit | ||||
Other comprehensive income (loss), Tax (expense) benefit | 0 | (111) | (1) | |
After-tax amount | ||||
Other comprehensive income (loss), After-tax amount | 0 | 340 | 2 | |
Foreign exchange adjustment | ||||
Pre-tax amount | ||||
Other comprehensive income (loss), Pre-tax amount | 0 | 1 | 0 | |
Tax (expense) benefit | ||||
Other comprehensive income (loss), Tax (expense) benefit | 0 | 0 | ||
Reclassification adjustment, Tax (expense) benefit | 0 | |||
After-tax amount | ||||
Other comprehensive income (loss), After-tax amount | 0 | 1 | 0 | |
Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost | ||||
Pre-tax amount | ||||
Reclassification adjustment, Pre-tax amount | 22 | 26 | 25 | |
Tax (expense) benefit | ||||
Reclassification adjustment, Tax (expense) benefit | (5) | (7) | (7) | |
After-tax amount | ||||
Reclassification adjustment, After-tax amount | 17 | 19 | 18 | |
Unrealized gain (loss) on cash flow hedges | ||||
Pre-tax amount | ||||
Other comprehensive income (loss), Pre-tax amount | 7 | 29 | 14 | |
Reclassification adjustment, Pre-tax amount | (10) | (33) | 1 | |
Total other comprehensive income (loss), Pre-tax amount | (3) | (4) | 15 | |
Tax (expense) benefit | ||||
Other comprehensive income (loss), Tax (expense) benefit | (1) | (8) | (5) | |
Reclassification adjustment, Tax (expense) benefit | 2 | 10 | 0 | |
Total other comprehensive income (loss), Tax (expense) benefit | 1 | 2 | (5) | |
After-tax amount | ||||
Other comprehensive income (loss), After-tax amount | 6 | 21 | 9 | |
Reclassification adjustment, After-tax amount | (8) | (23) | 1 | |
Total other comprehensive income (loss), net of tax | (2) | (2) | 10 | |
Unrealized gain (loss) on cash flow hedges | Other revenue | ||||
Pre-tax amount | ||||
Reclassification adjustment, Pre-tax amount | (4) | (8) | 0 | |
Tax (expense) benefit | ||||
Reclassification adjustment, Tax (expense) benefit | 1 | 4 | 0 | |
After-tax amount | ||||
Reclassification adjustment, After-tax amount | (3) | (4) | 0 | |
Unrealized gain (loss) on cash flow hedges | Salary expense | ||||
Pre-tax amount | ||||
Reclassification adjustment, Pre-tax amount | (6) | (25) | 4 | |
Tax (expense) benefit | ||||
Reclassification adjustment, Tax (expense) benefit | 1 | 6 | (1) | |
After-tax amount | ||||
Reclassification adjustment, After-tax amount | (5) | (19) | 3 | |
Unrealized gain (loss) on cash flow hedges | Trading revenue | ||||
Pre-tax amount | ||||
Reclassification adjustment, Pre-tax amount | 0 | 0 | (3) | |
Tax (expense) benefit | ||||
Reclassification adjustment, Tax (expense) benefit | 0 | 0 | 1 | |
After-tax amount | ||||
Reclassification adjustment, After-tax amount | $ 0 | $ 0 | $ (2) | |
[1] | Other comprehensive income (loss) attributable to The Bank of New York Mellon Corporation shareholders was $16 million for the quarter ended March 31, 2018, $424 million for the quarter ended Dec. 31, 2017 and $241 million for the quarter ended March 31, 2017. |
Fair value measurement - Narrat
Fair value measurement - Narrative (Details) - Estimated fair value - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments recorded at fair value | $ 236,700 | $ 238,984 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments recorded at fair value | 0 | $ 0 |
Assets measured at fair value on a recurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments recorded at fair value | $ 0 |
Fair value measurement - Assets
Fair value measurement - Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Trading assets: | ||
Total derivative assets not designated as hedging | $ 2,767 | $ 3,091 |
Trading liabilities: | ||
Derivative liabilities | 2,368 | 3,576 |
Long-term debt | 363 | 367 |
Estimated fair value | ||
Trading assets: | ||
Other assets, fair value | 5,844 | 6,626 |
Total assets | 236,700 | 238,984 |
Trading liabilities: | ||
Long-term debt | 27,150 | 27,789 |
Estimated fair value | Level 1 | ||
Trading assets: | ||
Other assets, fair value | 4,636 | 5,382 |
Total assets | 12,673 | 16,747 |
Trading liabilities: | ||
Long-term debt | 0 | 0 |
Estimated fair value | Level 2 | ||
Trading assets: | ||
Other assets, fair value | 1,208 | 1,244 |
Total assets | 224,027 | 222,237 |
Trading liabilities: | ||
Long-term debt | 27,150 | 27,789 |
Estimated fair value | Level 3 | ||
Trading assets: | ||
Other assets, fair value | 0 | 0 |
Total assets | 0 | 0 |
Trading liabilities: | ||
Long-term debt | 0 | 0 |
Total carrying value | ||
Trading assets: | ||
Other assets, fair value | 5,844 | 6,626 |
Total assets | 237,575 | 239,159 |
Trading liabilities: | ||
Long-term debt | 27,576 | 27,612 |
Assets measured at fair value on a recurring basis | ||
Trading assets: | ||
Total derivative assets not designated as hedging, Netting | (5,719) | (8,845) |
Trading liabilities: | ||
Total derivative liabilities not designated as hedging, Netting | (5,722) | (8,797) |
Assets measured at fair value on a recurring basis | Total trading assets | ||
Trading assets: | ||
Total derivative assets not designated as hedging, Netting | (5,719) | (8,845) |
Assets measured at fair value on a recurring basis | Operations | ||
Trading assets: | ||
Total derivative assets not designated as hedging, Netting | (5,719) | (8,845) |
Trading liabilities: | ||
Total derivative liabilities not designated as hedging, Netting | (5,722) | (8,797) |
Assets measured at fair value on a recurring basis | Total trading liabilities | ||
Trading liabilities: | ||
Total derivative liabilities not designated as hedging, Netting | (5,722) | (8,797) |
Assets measured at fair value on a recurring basis | Not designated as hedging | Total trading assets | ||
Trading assets: | ||
Total derivative assets not designated as hedging, Netting | (5,719) | (8,845) |
Assets measured at fair value on a recurring basis | Not designated as hedging | Total trading assets | Equity and other contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging, Netting | (77) | (50) |
Assets measured at fair value on a recurring basis | Not designated as hedging | Total trading assets | Interest rate contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging, Netting | (2,550) | (5,075) |
Assets measured at fair value on a recurring basis | Not designated as hedging | Total trading assets | Foreign exchange contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging, Netting | (3,092) | (3,720) |
Assets measured at fair value on a recurring basis | Not designated as hedging | Total trading liabilities | ||
Trading liabilities: | ||
Total derivative liabilities not designated as hedging, Netting | (5,722) | (8,797) |
Assets measured at fair value on a recurring basis | Not designated as hedging | Total trading liabilities | Equity and other contracts | ||
Trading liabilities: | ||
Total derivative liabilities not designated as hedging, Netting | (71) | (81) |
Assets measured at fair value on a recurring basis | Not designated as hedging | Total trading liabilities | Interest rate contracts | ||
Trading liabilities: | ||
Total derivative liabilities not designated as hedging, Netting | (2,482) | (5,495) |
Assets measured at fair value on a recurring basis | Not designated as hedging | Total trading liabilities | Foreign exchange contracts | ||
Trading liabilities: | ||
Total derivative liabilities not designated as hedging, Netting | (3,169) | (3,221) |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 2,663 | |
Equity Instruments, Fair Value Disclosure | 1,623 | |
Trading assets: | ||
Other assets, fair value | 139 | 144 |
Total assets | $ 32,155 | $ 27,964 |
Percentage of total assets prior to netting | 33.00% | 29.00% |
Trading liabilities: | ||
Long-term debt | $ 0 | |
Subtotal liabilities | $ 1,284 | $ 1,133 |
Percentage of total liabilities prior to netting | 13.00% | 8.00% |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | $ 27,372 | $ 26,145 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 16,954 | 15,263 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 10,418 | 9,919 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Other RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Agency commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | CLOs | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 963 | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Foreign covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Total trading assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt and equity instruments | 1,344 | |
Trading assets: | ||
Trading assets | 4,304 | 1,353 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Total other assets | ||
Trading assets: | ||
Other assets, fair value | 139 | 144 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Operations | ||
Trading assets: | ||
Total assets | $ 31,815 | $ 27,642 |
Percentage of total assets prior to netting | 33.00% | 29.00% |
Trading liabilities: | ||
Subtotal liabilities | $ 1,284 | $ 1,132 |
Percentage of total liabilities prior to netting | 13.00% | 8.00% |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Investment management funds | ||
Trading assets: | ||
Total assets | $ 340 | $ 322 |
Trading liabilities: | ||
Subtotal liabilities | 0 | 1 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Total trading liabilities | ||
Trading liabilities: | ||
Debt and equity instruments | 1,128 | |
Trading liabilities | 1,284 | 1,132 |
Total trading liabilities | 1,284 | 1,132 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Total other liabilities – derivative liabilities designated as hedging | ||
Trading liabilities: | ||
Total other liabilities – derivative liabilities designated as hedging | 0 | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Not designated as hedging | Total trading assets | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 18 | 9 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Not designated as hedging | Total trading assets | Equity and other contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 1 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Not designated as hedging | Total trading assets | Interest rate contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 17 | 9 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Not designated as hedging | Total trading assets | Foreign exchange contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Not designated as hedging | Total trading liabilities | ||
Trading liabilities: | ||
Derivative liabilities | 12 | 4 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Not designated as hedging | Total trading liabilities | Equity and other contracts | ||
Trading liabilities: | ||
Derivative liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Not designated as hedging | Total trading liabilities | Interest rate contracts | ||
Trading liabilities: | ||
Derivative liabilities | 12 | 4 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Not designated as hedging | Total trading liabilities | Foreign exchange contracts | ||
Trading liabilities: | ||
Derivative liabilities | 0 | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Designated as hedging | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 0 | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Designated as hedging | Total other assets | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 0 | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Designated as hedging | Total other assets | Interest rate contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Designated as hedging | Total other assets | Foreign exchange contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | ||
Trading liabilities: | ||
Derivative liabilities | 0 | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | Interest rate contracts | ||
Trading liabilities: | ||
Derivative liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | Foreign exchange contracts | ||
Trading liabilities: | ||
Derivative liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1,599 | |
Trading assets: | ||
Other assets, fair value | 262 | 493 |
Total assets | $ 64,997 | $ 67,814 |
Percentage of total assets prior to netting | 67.00% | 71.00% |
Trading liabilities: | ||
Long-term debt | $ 363 | $ 367 |
Subtotal liabilities | $ 8,556 | $ 12,817 |
Percentage of total liabilities prior to netting | 87.00% | 92.00% |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | $ 54,458 | $ 53,398 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,154 | 908 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 2,816 | 2,638 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 2,726 | 2,957 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 24,036 | 23,819 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,476 | 1,578 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Other RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 146 | 149 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,373 | 1,360 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Agency commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 9,512 | 8,762 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | CLOs | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 3,129 | 2,909 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 278 | 1,043 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,222 | 1,255 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 3,871 | 3,491 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Foreign covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 2,719 | 2,529 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,019 | 1,091 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Total trading assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt and equity instruments | 1,910 | |
Trading assets: | ||
Trading assets | 10,011 | 13,514 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Total other assets | ||
Trading assets: | ||
Other assets, fair value | 206 | 170 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Operations | ||
Trading assets: | ||
Total assets | $ 64,731 | $ 67,405 |
Percentage of total assets prior to netting | 67.00% | 71.00% |
Trading liabilities: | ||
Subtotal liabilities | $ 8,545 | $ 12,816 |
Percentage of total liabilities prior to netting | 87.00% | 92.00% |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Investment management funds | ||
Trading assets: | ||
Total assets | $ 266 | $ 409 |
Trading liabilities: | ||
Subtotal liabilities | 11 | 1 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Total trading liabilities | ||
Trading liabilities: | ||
Debt and equity instruments | 80 | |
Trading liabilities | 7,803 | 11,649 |
Total trading liabilities | 7,803 | 11,649 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Total other liabilities – derivative liabilities designated as hedging | ||
Trading liabilities: | ||
Total other liabilities – derivative liabilities designated as hedging | 379 | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Not designated as hedging | Total trading assets | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 8,412 | 11,604 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Not designated as hedging | Total trading assets | Equity and other contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 100 | 70 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Not designated as hedging | Total trading assets | Interest rate contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 3,921 | 6,430 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Not designated as hedging | Total trading assets | Foreign exchange contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 4,391 | 5,104 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Not designated as hedging | Total trading liabilities | ||
Trading liabilities: | ||
Derivative liabilities | 7,699 | 11,569 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Not designated as hedging | Total trading liabilities | Equity and other contracts | ||
Trading liabilities: | ||
Derivative liabilities | 138 | 153 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Not designated as hedging | Total trading liabilities | Interest rate contracts | ||
Trading liabilities: | ||
Derivative liabilities | 3,393 | 6,349 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Not designated as hedging | Total trading liabilities | Foreign exchange contracts | ||
Trading liabilities: | ||
Derivative liabilities | 4,168 | 5,067 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Designated as hedging | Total other assets | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 56 | 323 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Designated as hedging | Total other assets | Interest rate contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 11 | 278 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Designated as hedging | Total other assets | Foreign exchange contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 45 | 45 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | ||
Trading liabilities: | ||
Derivative liabilities | 800 | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | Interest rate contracts | ||
Trading liabilities: | ||
Derivative liabilities | 95 | 534 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | Foreign exchange contracts | ||
Trading liabilities: | ||
Derivative liabilities | 284 | $ 266 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 3 | ||
Trading assets: | ||
Total assets | 0 | |
Percentage of total assets prior to netting | 0.00% | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 3 | Operations | ||
Trading assets: | ||
Percentage of total assets prior to netting | 0.00% | |
Assets measured at fair value on a recurring basis | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 4,262 | |
Equity Instruments, Fair Value Disclosure | 1,623 | |
Trading assets: | ||
Other assets, fair value | 561 | $ 791 |
Total assets | 91,593 | 87,087 |
Trading liabilities: | ||
Long-term debt | 363 | 367 |
Subtotal liabilities | 4,118 | 5,153 |
Assets measured at fair value on a recurring basis | Total carrying value | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 13,234 | 12,557 |
Assets measured at fair value on a recurring basis | Total carrying value | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,476 | 1,578 |
Assets measured at fair value on a recurring basis | Total carrying value | Foreign covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 2,719 | 2,529 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 81,830 | 79,543 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 16,954 | 15,263 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,154 | 908 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 13,234 | 12,557 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 2,726 | 2,957 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 24,036 | 23,819 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,476 | 1,578 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Other RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 146 | 149 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,373 | 1,360 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Agency commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 9,512 | 8,762 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | CLOs | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 3,129 | 2,909 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 278 | 1,043 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 963 | |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,222 | 1,255 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 3,871 | 3,491 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Foreign covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 2,719 | 2,529 |
Assets measured at fair value on a recurring basis | Total carrying value | Total trading assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt and equity instruments | 3,254 | |
Trading assets: | ||
Trading assets | 8,596 | 6,022 |
Assets measured at fair value on a recurring basis | Total carrying value | Total other assets | ||
Trading assets: | ||
Other assets, fair value | 345 | 314 |
Assets measured at fair value on a recurring basis | Total carrying value | Other assets measured at net asset value | ||
Trading assets: | ||
Other assets, fair value | 160 | 154 |
Assets measured at fair value on a recurring basis | Total carrying value | Operations | ||
Trading assets: | ||
Total assets | 90,987 | 86,356 |
Trading liabilities: | ||
Subtotal liabilities | 4,107 | 5,151 |
Assets measured at fair value on a recurring basis | Total carrying value | Investment management funds | ||
Trading assets: | ||
Total assets | 606 | 731 |
Trading liabilities: | ||
Subtotal liabilities | 11 | 2 |
Assets measured at fair value on a recurring basis | Total carrying value | Total trading liabilities | ||
Trading liabilities: | ||
Debt and equity instruments | 1,208 | |
Trading liabilities | 3,365 | 3,984 |
Total trading liabilities | 3,365 | 3,984 |
Assets measured at fair value on a recurring basis | Total carrying value | Total other liabilities – derivative liabilities designated as hedging | ||
Trading liabilities: | ||
Total other liabilities – derivative liabilities designated as hedging | 379 | |
Assets measured at fair value on a recurring basis | Total carrying value | Not designated as hedging | Total trading assets | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 2,711 | 2,768 |
Assets measured at fair value on a recurring basis | Total carrying value | Not designated as hedging | Total trading assets | Equity and other contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 24 | 20 |
Assets measured at fair value on a recurring basis | Total carrying value | Not designated as hedging | Total trading assets | Interest rate contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 1,388 | 1,364 |
Assets measured at fair value on a recurring basis | Total carrying value | Not designated as hedging | Total trading assets | Foreign exchange contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 1,299 | 1,384 |
Assets measured at fair value on a recurring basis | Total carrying value | Not designated as hedging | Total trading liabilities | ||
Trading liabilities: | ||
Derivative liabilities | 1,989 | 2,776 |
Assets measured at fair value on a recurring basis | Total carrying value | Not designated as hedging | Total trading liabilities | Equity and other contracts | ||
Trading liabilities: | ||
Derivative liabilities | 67 | 72 |
Assets measured at fair value on a recurring basis | Total carrying value | Not designated as hedging | Total trading liabilities | Interest rate contracts | ||
Trading liabilities: | ||
Derivative liabilities | 923 | 858 |
Assets measured at fair value on a recurring basis | Total carrying value | Not designated as hedging | Total trading liabilities | Foreign exchange contracts | ||
Trading liabilities: | ||
Derivative liabilities | 999 | 1,846 |
Assets measured at fair value on a recurring basis | Total carrying value | Designated as hedging | Total other assets | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 56 | 323 |
Assets measured at fair value on a recurring basis | Total carrying value | Designated as hedging | Total other assets | Interest rate contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 11 | 278 |
Assets measured at fair value on a recurring basis | Total carrying value | Designated as hedging | Total other assets | Foreign exchange contracts | ||
Trading assets: | ||
Total derivative assets not designated as hedging | 45 | 45 |
Assets measured at fair value on a recurring basis | Total carrying value | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | ||
Trading liabilities: | ||
Derivative liabilities | 800 | |
Assets measured at fair value on a recurring basis | Total carrying value | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | Interest rate contracts | ||
Trading liabilities: | ||
Derivative liabilities | 95 | 534 |
Assets measured at fair value on a recurring basis | Total carrying value | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | Foreign exchange contracts | ||
Trading liabilities: | ||
Derivative liabilities | 284 | $ 266 |
Debt [Member] | Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | ||
Trading liabilities: | ||
Trading liabilities | 1,155 | |
Total trading liabilities | 1,155 | |
Debt [Member] | Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | ||
Trading liabilities: | ||
Trading liabilities | 104 | |
Total trading liabilities | 104 | |
Debt [Member] | Assets measured at fair value on a recurring basis | Total carrying value | ||
Trading liabilities: | ||
Trading liabilities | 1,259 | |
Total trading liabilities | 1,259 | |
Equity Liability [Member] | Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | ||
Trading liabilities: | ||
Trading liabilities | 117 | |
Total trading liabilities | 117 | |
Equity Liability [Member] | Assets measured at fair value on a recurring basis | Total carrying value | ||
Trading liabilities: | ||
Trading liabilities | 117 | |
Total trading liabilities | $ 117 |
Fair value measurement - Certai
Fair value measurement - Certain Items on Recurring Basis (Details) - Assets measured at fair value on a recurring basis - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Total carrying value | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 81,830 | $ 79,543 |
Non-agency RMBS | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 1,476 | 1,578 |
Non-agency RMBS | Total carrying value | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 1,476 | 1,578 |
Non-agency RMBS | 2007 | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 317 | 351 |
Non-agency RMBS | 2006 | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 363 | 387 |
Non-agency RMBS | 2005 | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 486 | 507 |
Non-agency RMBS | 2004 and earlier | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 310 | 333 |
Commercial MBS | Total carrying value | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 1,373 | 1,360 |
Commercial MBS | Total carrying value | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 1,373 | 1,360 |
Commercial MBS | 2005 | Total carrying value | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 52 | 51 |
Commercial MBS | 2009-2017 | Total carrying value | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 1,321 | 1,309 |
Other RMBS | Total carrying value | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 146 | 149 |
Foreign covered bonds | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 2,719 | 2,529 |
Foreign covered bonds | Total carrying value | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 2,719 | 2,529 |
Foreign covered bonds | Canada | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 1,609 | 1,659 |
Foreign covered bonds | Australia | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 347 | 265 |
Foreign covered bonds | United Kingdom | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 239 | 103 |
Foreign covered bonds | Sweden | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 204 | 136 |
Foreign covered bonds | Other | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 320 | 366 |
Sovereign debt/sovereign guaranteed | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 13,234 | 12,557 |
Sovereign debt/sovereign guaranteed | Total carrying value | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 13,234 | 12,557 |
Sovereign debt/sovereign guaranteed | United Kingdom | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 3,140 | 3,052 |
Sovereign debt/sovereign guaranteed | France | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 2,171 | 2,046 |
Sovereign debt/sovereign guaranteed | Germany | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 1,856 | 1,586 |
Sovereign debt/sovereign guaranteed | Spain | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 1,681 | 1,635 |
Sovereign debt/sovereign guaranteed | Italy | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 1,138 | 1,292 |
Sovereign debt/sovereign guaranteed | Netherlands | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 1,050 | 1,027 |
Sovereign debt/sovereign guaranteed | Ireland | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 857 | 843 |
Sovereign debt/sovereign guaranteed | Belgium | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 820 | 803 |
Sovereign debt/sovereign guaranteed | Other | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 521 | 273 |
Sovereign debt/sovereign guaranteed | Brazil | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | 133 | 136 |
Non-agency RMBS | 2007 | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 1,019 | $ 1,091 |
AAA/ AA- | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 3.00% | 3.00% |
AAA/ AA- | Non-agency RMBS | 2005 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 5.00% | 6.00% |
AAA/ AA- | Non-agency RMBS | 2004 and earlier | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 3.00% | 3.00% |
AAA/ AA- | Commercial MBS | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 96.00% | 94.00% |
AAA/ AA- | Commercial MBS | 2005 | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
AAA/ AA- | Commercial MBS | 2009-2017 | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 96.00% | 94.00% |
AAA/ AA- | Other RMBS | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 38.00% | 37.00% |
AAA/ AA- | Other RMBS | origination pre twenty zero seven [Member] | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 38.00% | 37.00% |
AAA/ AA- | Foreign covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
AAA/ AA- | Foreign covered bonds | Canada | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
AAA/ AA- | Foreign covered bonds | Australia | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
AAA/ AA- | Foreign covered bonds | United Kingdom | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
AAA/ AA- | Foreign covered bonds | Sweden | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
AAA/ AA- | Foreign covered bonds | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
AAA/ AA- | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 71.00% | 69.00% |
AAA/ AA- | Sovereign debt/sovereign guaranteed | United Kingdom | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
AAA/ AA- | Sovereign debt/sovereign guaranteed | France | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
AAA/ AA- | Sovereign debt/sovereign guaranteed | Germany | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
AAA/ AA- | Sovereign debt/sovereign guaranteed | Netherlands | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
AAA/ AA- | Sovereign debt/sovereign guaranteed | Belgium | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
AAA/ AA- | Sovereign debt/sovereign guaranteed | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 75.00% | 50.00% |
A/ A- | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 1.00% | 1.00% |
A/ A- | Non-agency RMBS | 2005 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 2.00% | 2.00% |
A/ A- | Non-agency RMBS | 2004 and earlier | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 3.00% | 3.00% |
A/ A- | Commercial MBS | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 4.00% | 6.00% |
A/ A- | Commercial MBS | 2009-2017 | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 4.00% | 6.00% |
A/ A- | Other RMBS | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 62.00% | 63.00% |
A/ A- | Other RMBS | origination pre twenty zero seven [Member] | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 62.00% | 63.00% |
A/ A- | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 7.00% | 7.00% |
A/ A- | Sovereign debt/sovereign guaranteed | Ireland | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
BBB/ BBB- | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 9.00% | 8.00% |
BBB/ BBB- | Non-agency RMBS | 2007 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 5.00% | |
BBB/ BBB- | Non-agency RMBS | 2005 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 6.00% | 5.00% |
BBB/ BBB- | Non-agency RMBS | 2004 and earlier | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 32.00% | 30.00% |
BBB/ BBB- | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 21.00% | 23.00% |
BBB/ BBB- | Sovereign debt/sovereign guaranteed | Spain | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
BBB/ BBB- | Sovereign debt/sovereign guaranteed | Italy | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
BB and lower | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 87.00% | 88.00% |
BB and lower | Non-agency RMBS | 2007 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 95.00% | 100.00% |
BB and lower | Non-agency RMBS | 2006 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
BB and lower | Non-agency RMBS | 2005 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 87.00% | 87.00% |
BB and lower | Non-agency RMBS | 2004 and earlier | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 62.00% | 64.00% |
BB and lower | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 1.00% | 1.00% |
BB and lower | Sovereign debt/sovereign guaranteed | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 25.00% | 50.00% |
Fair value measurement - Asse90
Fair value measurement - Assets on Nonrecurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Decrease in fair value of loans of underlying collateral | $ 1 | $ 1 |
Measured at fair value on a nonrecurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 75 | 79 |
Other assets, fair value | 30 | 4 |
Total assets | 105 | 83 |
Measured at fair value on a nonrecurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Other assets, fair value | 0 | 0 |
Total assets | 0 | 0 |
Measured at fair value on a nonrecurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 70 | 73 |
Other assets, fair value | 30 | 4 |
Total assets | 100 | 77 |
Measured at fair value on a nonrecurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 5 | 6 |
Other assets, fair value | 0 | 0 |
Total assets | $ 5 | $ 6 |
Fair value measurement - Financ
Fair value measurement - Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Liabilities: | ||
Long-term debt | $ 363 | $ 367 |
Estimated fair value | ||
Assets: | ||
Interest-bearing deposits with the Federal Reserve and other central banks | 91,431 | 91,510 |
Interest-bearing deposits with banks | 15,194 | 11,982 |
Federal funds sold and securities purchased under resale agreements | 28,784 | 28,135 |
Securities held-to-maturity | 36,135 | 40,512 |
Loans | 59,312 | 60,219 |
Other financial assets | 5,844 | 6,626 |
Total assets | 236,700 | 238,984 |
Liabilities: | ||
Noninterest-bearing deposits | 76,880 | 82,716 |
Interest-bearing deposits | 163,158 | 160,042 |
Federal funds purchased and securities sold under repurchase agreements | 21,600 | 15,163 |
Payables to customers and broker-dealers | 20,172 | 20,184 |
Commercial paper | 3,936 | 3,075 |
Borrowings | 1,432 | 2,931 |
Long-term debt | 27,150 | 27,789 |
Total liabilities | 314,328 | 311,900 |
Estimated fair value | Level 1 | ||
Assets: | ||
Interest-bearing deposits with the Federal Reserve and other central banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Federal funds sold and securities purchased under resale agreements | 0 | 0 |
Securities held-to-maturity | 8,037 | 11,365 |
Loans | 0 | 0 |
Other financial assets | 4,636 | 5,382 |
Total assets | 12,673 | 16,747 |
Liabilities: | ||
Noninterest-bearing deposits | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Federal funds purchased and securities sold under repurchase agreements | 0 | 0 |
Payables to customers and broker-dealers | 0 | 0 |
Commercial paper | 0 | 0 |
Borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Total liabilities | 0 | 0 |
Estimated fair value | Level 2 | ||
Assets: | ||
Interest-bearing deposits with the Federal Reserve and other central banks | 91,431 | 91,510 |
Interest-bearing deposits with banks | 15,194 | 11,982 |
Federal funds sold and securities purchased under resale agreements | 28,784 | 28,135 |
Securities held-to-maturity | 28,098 | 29,147 |
Loans | 59,312 | 60,219 |
Other financial assets | 1,208 | 1,244 |
Total assets | 224,027 | 222,237 |
Liabilities: | ||
Noninterest-bearing deposits | 76,880 | 82,716 |
Interest-bearing deposits | 163,158 | 160,042 |
Federal funds purchased and securities sold under repurchase agreements | 21,600 | 15,163 |
Payables to customers and broker-dealers | 20,172 | 20,184 |
Commercial paper | 3,936 | 3,075 |
Borrowings | 1,432 | 2,931 |
Long-term debt | 27,150 | 27,789 |
Total liabilities | 314,328 | 311,900 |
Estimated fair value | Level 3 | ||
Assets: | ||
Interest-bearing deposits with the Federal Reserve and other central banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Federal funds sold and securities purchased under resale agreements | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Loans | 0 | 0 |
Other financial assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Noninterest-bearing deposits | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Federal funds purchased and securities sold under repurchase agreements | 0 | 0 |
Payables to customers and broker-dealers | 0 | 0 |
Commercial paper | 0 | 0 |
Borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Total liabilities | 0 | 0 |
Carrying amount | ||
Assets: | ||
Interest-bearing deposits with the Federal Reserve and other central banks | 91,431 | 91,510 |
Interest-bearing deposits with banks | 15,186 | 11,979 |
Federal funds sold and securities purchased under resale agreements | 28,784 | 28,135 |
Securities held-to-maturity | 36,959 | 40,827 |
Loans | 59,371 | 60,082 |
Other financial assets | 5,844 | 6,626 |
Total assets | 237,575 | 239,159 |
Liabilities: | ||
Noninterest-bearing deposits | 76,880 | 82,716 |
Interest-bearing deposits | 164,964 | 161,606 |
Federal funds purchased and securities sold under repurchase agreements | 21,600 | 15,163 |
Payables to customers and broker-dealers | 20,172 | 20,184 |
Commercial paper | 3,936 | 3,075 |
Borrowings | 1,432 | 2,931 |
Long-term debt | 27,576 | 27,612 |
Total liabilities | $ 316,560 | $ 313,287 |
Fair value measurement - Deriva
Fair value measurement - Derivatives (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Securities available-for-sale | ||
Derivative [Line Items] | ||
Carrying amount | $ 13,522 | $ 12,307 |
Notional amount of hedge | 13,411 | 12,365 |
Unrealized Gain | 8 | 102 |
Unrealized (Loss) | (87) | (301) |
Long-term debt | ||
Derivative [Line Items] | ||
Carrying amount | 24,089 | 23,821 |
Notional amount of hedge | 24,600 | 23,950 |
Unrealized Gain | 0 | 175 |
Unrealized (Loss) | $ (8) | $ (233) |
Fair value option - Assets and
Fair value option - Assets and Liabilities (Details) - Investment Management funds - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Assets of consolidated investment management funds: | ||
Trading assets | $ 353 | $ 516 |
Other assets, fair value | 253 | 215 |
Total assets | 606 | 731 |
Liabilities of consolidated investment management funds: | ||
Other liabilities | 11 | 2 |
Subtotal liabilities | $ 11 | $ 2 |
Fair value option - Changes in
Fair value option - Changes in Fair Value of Loans (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Long-term debt | Long-term debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (loss) change in fair value | $ 4 | $ 2 | $ (1) |
Fair value option - Narrative (
Fair value option - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Fair value option of long-term debt | $ 240 | |
Long-term debt, fair value | $ 363 | $ 367 |
Derivative instruments - Narrat
Derivative instruments - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Counterparty default losses recorded | $ 0 | $ 0 | |
Non-derivative financial instruments designated as hedges of net investments in foreign subsidiaries were all long-term liabilities of BNY Mellon in various currencies | $ 188,000,000 | ||
Value-at-risk methodology assumed holding period for instruments | 1 day | ||
Value-at-risk methodology confidence level percentage | 99.00% | ||
Additional collateral The Bank of New York Mellon would have to post for existing collateral arrangements, if The Bank of New York Mellon's debt rating had fallen below investment grade | $ 144,000,000 | ||
Foreign exchange contracts | Net investment hedging | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Hedged financial instruments, notional amount of derivative | 7,400,000,000 | ||
Gain or (loss) recognized in accumulated OCI on derivatives | $ (158,000,000) | $ (49,000,000) | $ (96,000,000) |
Foreign exchange contracts | Maximum | Net investment hedging | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Hedging derivatives, maturities, maximum | 1 year | ||
Foreign exchange contracts | Forecasted Foreign Currency | Cash flow hedges | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Original maturities, maximum, of hedged instruments | 15 months | ||
Hedged financial instruments, notional amount of derivative | $ 415,000,000 | ||
Gain or (loss) recognized in accumulated OCI on derivatives | $ 9,000,000 | ||
Foreign exchange contracts | Forecasted Foreign Currency | Maximum | Cash flow hedges | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Hedging derivatives, maturities, maximum | 12 months | ||
Securities available-for-sale | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Hedged financial instruments | $ 13,300,000,000 | ||
Hedged financial instruments, notional amount of derivative | $ 13,411,000,000 | 12,365,000,000 | |
Securities available-for-sale | Interest rate swap | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Original maturities, maximum, of hedged instruments | 30 years | ||
Hedged financial instruments, notional amount of derivative | $ 13,300,000,000 | ||
Long-term debt | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Hedged financial instruments | 24,600,000,000 | ||
Hedged financial instruments, notional amount of derivative | $ 24,600,000,000 | $ 23,950,000,000 | |
Long-term debt | Interest rate swap | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Original maturities, maximum, of hedged instruments | 30 years | ||
Hedged financial instruments, notional amount of derivative | $ 24,600,000,000 | ||
Original maturities, minimum, of hedged instruments | 5 years |
Derivative instruments - Gains
Derivative instruments - Gains (Losses) Related to Hedging Derivative Portfolio Recognized in the Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (loss) recognized in income on derivatives | $ 23 | $ 24 | $ (5) |
Fair value hedging | Derivative | Long-term debt | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (loss) recognized on derivatives | (378) | (185) | (72) |
Fair value hedging | Derivative | Available-for-sale | Interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (loss) recognized on derivatives | 397 | 91 | 82 |
Fair value hedging | Hedged item | Long-term debt | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (loss) recognized on hedged item | 377 | 178 | 67 |
Fair value hedging | Hedged item | Available-for-sale | Interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (loss) recognized on hedged item | (383) | (93) | (81) |
Cash flow hedges | Trading revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified from accumulated OCI into income | 0 | 0 | 3 |
Cash flow hedges | Salary expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified from accumulated OCI into income | 6 | 25 | (4) |
Cash flow hedges | Other revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified from accumulated OCI into income | $ 4 | $ 8 | $ 0 |
Derivative instruments - Impact
Derivative instruments - Impact of Hedging Derivatives Used in Net Investment Hedging Relationships (Details) - Net investment hedging - FX contracts - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (loss) recognized in accumulated OCI on derivatives | $ (158) | $ (49) | $ (96) |
Net interest revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or (loss) reclassified from accumulated OCI into income | $ 0 | $ 0 | $ 0 |
Derivative instruments - Hedged
Derivative instruments - Hedged Items in Fair Value Hedging Relationships (Details) - Fair value hedging $ in Millions | Mar. 31, 2018USD ($) |
Long-term debt | |
Derivative [Line Items] | |
Carrying amount of hedged liability | $ 24,089 |
Hedge accounting basis adjustment increase (decrease) | (511) |
Long-term debt | Terminated hedges | |
Derivative [Line Items] | |
Hedge accounting basis adjustment increase (decrease) | (14) |
Securities available-for-sale | |
Derivative [Line Items] | |
Carrying amount of hedged asset | 13,522 |
Hedge accounting basis adjustment increase (decrease) | $ (238) |
Derivative instruments - Imp100
Derivative instruments - Impact of Derivative Instruments on the Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Asset derivatives fair value | $ 8,486 | $ 11,936 |
Asset derivatives fair value, effect of master netting agreements | (5,719) | (8,845) |
Total derivatives, Net assets recognized on the balance sheet | 2,767 | 3,091 |
Liability derivatives fair value | 8,090 | 12,373 |
Liability derivatives fair value, effect of master netting agreements | (5,722) | (8,797) |
Total derivatives, Net liabilities recognized on the balance sheet | 2,368 | 3,576 |
Master netting agreements, cash collateral received | 808 | 925 |
Master netting agreements, cash collateral paid | 811 | 877 |
Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives fair value, effect of master netting agreements | (2,550) | (5,075) |
Liability derivatives fair value, effect of master netting agreements | (2,482) | (5,495) |
Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives fair value, effect of master netting agreements | (3,092) | (3,720) |
Liability derivatives fair value, effect of master netting agreements | (3,168) | (3,221) |
Equity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives fair value, effect of master netting agreements | (77) | (50) |
Liability derivatives fair value, effect of master netting agreements | (72) | (81) |
Designated as hedging | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives fair value | 56 | 323 |
Liability derivatives fair value | 379 | 800 |
Designated as hedging | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional value | 38,011 | 36,315 |
Asset derivatives fair value | 11 | 278 |
Liability derivatives fair value | 95 | 534 |
Designated as hedging | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional value | 8,212 | 8,923 |
Asset derivatives fair value | 45 | 45 |
Liability derivatives fair value | 284 | 266 |
Not designated as hedging | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives fair value | 8,430 | 11,613 |
Liability derivatives fair value | 7,711 | 11,573 |
Not designated as hedging | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional value | 286,222 | 267,485 |
Asset derivatives fair value | 3,938 | 6,439 |
Liability derivatives fair value | 3,405 | 6,353 |
Not designated as hedging | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional value | 793,758 | 767,999 |
Asset derivatives fair value | 4,391 | 5,104 |
Liability derivatives fair value | 4,168 | 5,067 |
Not designated as hedging | Equity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional value | 1,615 | 1,698 |
Asset derivatives fair value | 101 | 70 |
Liability derivatives fair value | 135 | 149 |
Not designated as hedging | Credit contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional value | 180 | 180 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | $ 3 | $ 4 |
Derivative instruments - Revenu
Derivative instruments - Revenue from Foreign Exchange and Other Trading (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Foreign exchange | $ 183 | $ 175 | $ 154 |
Other trading revenue (loss) | 26 | (9) | 10 |
Total foreign exchange and other trading revenue | $ 209 | $ 166 | $ 164 |
Derivative instruments - Contra
Derivative instruments - Contracts Falling under Early Termination Provisions (Details) $ in Millions | Mar. 31, 2018USD ($) |
A3 | A- | |
Credit Derivatives [Line Items] | |
Potential close-out exposures (fair value) | $ 16 |
Baa2 | BBB | |
Credit Derivatives [Line Items] | |
Potential close-out exposures (fair value) | 232 |
Ba1 | BB plus | |
Credit Derivatives [Line Items] | |
Potential close-out exposures (fair value) | $ 1,419 |
Derivative instruments - Offset
Derivative instruments - Offsetting (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative Asset [Abstract] | ||
Derivatives subject to netting arrangements, Gross assets recognized | $ 7,253 | $ 10,648 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 5,719 | 8,845 |
Derivatives subject to netting arrangements, Net assets recognized on the balance sheet | 1,534 | 1,803 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 277 | 294 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Derivative assets subject to netting arrangements, Net amount | 1,257 | 1,509 |
Total derivatives not subject to netting arrangements | 1,233 | 1,288 |
Total derivatives, Gross assets recognized | 8,486 | 11,936 |
Total derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 5,719 | 8,845 |
Total derivatives, Net assets recognized on the balance sheet | 2,767 | 3,091 |
Total derivatives, Net amount | 2,490 | 2,797 |
Reverse repurchase agreements, Gross assets recognized | 36,755 | 42,784 |
Reverse repurchase agreements, Gross amounts offset in the balance sheet | 18,763 | 25,848 |
Reverse repurchase agreements, Net assets recognized on the balance sheet | 17,992 | 16,936 |
Reverse repurchase agreements, Gross amounts not offset in the balance sheet, Financial instruments | 17,981 | 16,923 |
Reverse repurchase agreements, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Reverse repurchase agreements, Net amount | 11 | 13 |
Securities borrowing, Gross assets recognized | 10,792 | 11,199 |
Securities borrowing, Net assets recognized on the balance sheet | 10,792 | 11,199 |
Securities borrowing, Gross amounts not offset in the balance sheet, Financial instruments | 10,546 | 10,858 |
Securities borrowing, Net amount | 246 | 341 |
Total, Gross assets recognized | 56,033 | 65,919 |
Total, Gross amounts offset in the balance sheet | 24,482 | 34,693 |
Total, Net assets recognized on the balance sheet | 31,551 | 31,226 |
Total, Gross amounts not offset in the balance sheet, Financial instruments | 28,804 | 28,075 |
Total, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Total, Net amount | 2,747 | 3,151 |
Derivative Liability [Abstract] | ||
Derivatives subject to netting arrangements, Gross liabilities recognized | 7,516 | 11,718 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 5,722 | 8,797 |
Derivatives subject to netting arrangements, Net liabilities recognized on the balance sheet | 1,794 | 2,921 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 1,072 | 1,457 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Derivative liabilities subject to netting arrangements, Net amount | 722 | 1,464 |
Total derivatives not subject to netting arrangements | 574 | 655 |
Total derivatives, Gross liabilities recognized | 8,090 | 12,373 |
Total derivatives, Net liabilities recognized on the balance sheet | 2,368 | 3,576 |
Total derivatives, Net amount | 1,296 | 2,119 |
Repurchase agreements, Gross liabilities recognized | 27,763 | 33,908 |
Repurchase agreements, Gross amounts offset in the balance sheet | 18,763 | 25,848 |
Repurchase agreements, Net liabilities recognized on the balance sheet | 9,000 | 8,060 |
Repurchase agreements, Gross amounts not offset in the balance sheet, Financial instruments | 9,000 | 8,059 |
Repurchase agreements, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Repurchase agreements, Net amount | 0 | 1 |
Securities lending, Gross liabilities recognized | 1,332 | 2,186 |
Securities lending, Net liabilities recognized on the balance sheet | 1,332 | 2,186 |
Securities lending, Gross amounts not offset in the balance sheet, Financial instruments | 1,278 | 2,091 |
Securities lending, Net amount | 54 | 95 |
Total, Gross liabilities recognized | 37,185 | 48,467 |
Total, Gross amounts offset in the balance sheet | 24,485 | 34,645 |
Total, Net liabilities recognized on the balance sheet | 12,700 | 13,822 |
Total, Gross amounts not offset in the balance sheet, Financial instruments | 11,350 | 11,607 |
Total, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Total, Net amount | 1,350 | 2,215 |
Interest rate contracts | ||
Derivative Asset [Abstract] | ||
Derivatives subject to netting arrangements, Gross assets recognized | 3,270 | 5,915 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 2,550 | 5,075 |
Derivatives subject to netting arrangements, Net assets recognized on the balance sheet | 720 | 840 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 140 | 178 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Derivative assets subject to netting arrangements, Net amount | 580 | 662 |
Total derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 2,550 | 5,075 |
Derivative Liability [Abstract] | ||
Derivatives subject to netting arrangements, Gross liabilities recognized | 3,424 | 6,810 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 2,482 | 5,495 |
Derivatives subject to netting arrangements, Net liabilities recognized on the balance sheet | 942 | 1,315 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 834 | 1,222 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Derivative liabilities subject to netting arrangements, Net amount | 108 | 93 |
Foreign exchange contracts | ||
Derivative Asset [Abstract] | ||
Derivatives subject to netting arrangements, Gross assets recognized | 3,885 | 4,666 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 3,092 | 3,720 |
Derivatives subject to netting arrangements, Net assets recognized on the balance sheet | 793 | 946 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 137 | 116 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Derivative assets subject to netting arrangements, Net amount | 656 | 830 |
Total derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 3,092 | 3,720 |
Derivative Liability [Abstract] | ||
Derivatives subject to netting arrangements, Gross liabilities recognized | 3,964 | 4,765 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 3,168 | 3,221 |
Derivatives subject to netting arrangements, Net liabilities recognized on the balance sheet | 796 | 1,544 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 185 | 177 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Derivative liabilities subject to netting arrangements, Net amount | 611 | 1,367 |
Equity and other contracts | ||
Derivative Asset [Abstract] | ||
Derivatives subject to netting arrangements, Gross assets recognized | 98 | 67 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 77 | 50 |
Derivatives subject to netting arrangements, Net assets recognized on the balance sheet | 21 | 17 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 0 | 0 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Derivative assets subject to netting arrangements, Net amount | 21 | 17 |
Total derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 77 | 50 |
Derivative Liability [Abstract] | ||
Derivatives subject to netting arrangements, Gross liabilities recognized | 128 | 143 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 72 | 81 |
Derivatives subject to netting arrangements, Net liabilities recognized on the balance sheet | 56 | 62 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 53 | 58 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Derivative liabilities subject to netting arrangements, Net amount | $ 3 | $ 4 |
Derivative instruments - Secure
Derivative instruments - Secured Borrowings (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | $ 27,763 | $ 33,908 |
Securities lending | 1,332 | 2,186 |
Total borrowings | 29,095 | 36,094 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 24,163 | 31,308 |
Securities lending | 1,332 | 2,186 |
Total borrowings | 25,495 | 33,494 |
Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 300 | 300 |
Securities lending | 0 | 0 |
Total borrowings | 300 | 300 |
30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 3,300 | 2,300 |
Securities lending | 0 | 0 |
Total borrowings | 3,300 | 2,300 |
U.S. Treasury | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 19,859 | 26,894 |
U.S. Treasury | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 19,858 | 26,883 |
U.S. Treasury | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1 | 11 |
U.S. Treasury | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
U.S. government agencies | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 837 | 750 |
Securities lending | 20 | 72 |
U.S. government agencies | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 719 | 570 |
Securities lending | 20 | 72 |
U.S. government agencies | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 118 | 180 |
Securities lending | 0 | 0 |
U.S. government agencies | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities lending | 0 | 0 |
Agency RMBS | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 3,021 | 2,683 |
Agency RMBS | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,808 | 2,574 |
Agency RMBS | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 181 | 109 |
Agency RMBS | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,032 | 0 |
Corporate bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,844 | 1,425 |
Corporate bonds | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 712 | 373 |
Corporate bonds | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Corporate bonds | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,132 | 1,052 |
Other debt securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,585 | 984 |
Securities lending | 369 | 316 |
Other debt securities | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 655 | 253 |
Securities lending | 369 | 316 |
Other debt securities | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities lending | 0 | 0 |
Other debt securities | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 930 | 731 |
Securities lending | 0 | 0 |
Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 617 | 1,172 |
Securities lending | 943 | 1,798 |
Equity securities | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 411 | 655 |
Securities lending | 943 | 1,798 |
Equity securities | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities lending | 0 | 0 |
Equity securities | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 206 | 517 |
Securities lending | $ 0 | $ 0 |
Commitments and contingent l105
Commitments and contingent liabilities - Summary of Off-Balance Sheet Credit Risks, Net of Participations (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Securities lending indemnifications, joint venture | $ 70,000 | $ 69,000 |
Invested in reverse repurchase agreements | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Cash collateral invested in indemnified repurchase agreements | 36,000 | 33,000 |
Lending commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit risks | 51,312 | 51,467 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit risks | 3,367 | 3,531 |
Off-balance sheet credit risks participations | 605 | 672 |
Commercial letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit risks | 191 | 122 |
Securities lending indemnifications | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit risks | $ 462,900 | $ 432,084 |
Commitments and contingent l106
Commitments and contingent liabilities - Standby Letters of Credits by Investment Grade (Details) - Standby letters of credit | Mar. 31, 2018 | Dec. 31, 2017 |
Investment grade | ||
Concentration Risk [Line Items] | ||
Standby letters of credit by investment grade | 86.00% | 84.00% |
Non-investment grade | ||
Concentration Risk [Line Items] | ||
Standby letters of credit by investment grade | 14.00% | 16.00% |
Commitments and contingent l107
Commitments and contingent liabilities - Significant Industry Concentrations Related to Credit Exposure (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | $ 60,809 | $ 61,540 |
Financial institutions | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 12,793 | 13,051 |
Unfunded commitments | 32,700 | |
Total exposure | 45,500 | |
Financial institutions | Securities Industry | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 3,600 | |
Unfunded commitments | 19,200 | |
Total exposure | 22,800 | |
Financial institutions | Banks | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 6,900 | |
Unfunded commitments | 1,300 | |
Total exposure | 8,200 | |
Financial institutions | Asset managers | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 1,300 | |
Unfunded commitments | 6,500 | |
Total exposure | 7,800 | |
Financial institutions | Insurance | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 100 | |
Unfunded commitments | 3,500 | |
Total exposure | 3,600 | |
Financial institutions | Government | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 100 | |
Unfunded commitments | 900 | |
Total exposure | 1,000 | |
Financial institutions | Other | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 800 | |
Unfunded commitments | 1,300 | |
Total exposure | 2,100 | |
Commercial | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 2,609 | $ 2,911 |
Unfunded commitments | 17,700 | |
Total exposure | 20,300 | |
Commercial | Manufacturing | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 1,300 | |
Unfunded commitments | 6,100 | |
Total exposure | 7,400 | |
Commercial | Services and other | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 700 | |
Unfunded commitments | 5,800 | |
Total exposure | 6,500 | |
Commercial | Energy and utilities | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 600 | |
Unfunded commitments | 4,400 | |
Total exposure | 5,000 | |
Commercial | Media and telecom | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 0 | |
Unfunded commitments | 1,400 | |
Total exposure | $ 1,400 |
Commitments and contingent l108
Commitments and contingent liabilities - Narrative (Details) | Mar. 31, 2018USD ($)claim | Dec. 31, 2017USD ($) | Feb. 29, 2016claim | Dec. 17, 2015claim | Jun. 18, 2014trust |
Commitments and Contingencies Disclosure [Line Items] | |||||
Lending commitment maturing in less than one year | $ 30,500,000,000 | ||||
Lending commitment maturing in one to five years | 20,600,000,000 | ||||
Lending commitment maturing over five years | 165,000,000 | ||||
Allowance for lending-related commitments | $ 100,000,000 | $ 102,000,000 | |||
Collateralization percentage generally required for a securities lending transaction with indemnification against broker default | 102.00% | ||||
Securities lending indemnifications, secured amount of collateral | $ 483,000,000,000 | 451,000,000,000 | |||
Securities lending indemnifications, joint venture | 70,000,000,000 | 69,000,000,000 | |||
Securities lending indemnifications, collateral joint venture | $ 74,000,000,000 | 73,000,000,000 | |||
Loss contingency, number of MBS trusts | trust | 249 | ||||
Matters Related to R. Allen Stanford | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Number of lawsuits or class actions (in claims) | claim | 15 | ||||
Matters Related to R. Allen Stanford, Putative Class Action | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Number of lawsuits or class actions (in claims) | claim | 2 | ||||
Brazilian Postalis Litigation | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Number of lawsuits or class actions (in claims) | claim | 3 | ||||
Depositary Receipt Litigation | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Number of lawsuits or class actions (in claims) | claim | 4 | ||||
Federal Court, Southern District of New York, Breach of Contract and Violation of ERISA | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Number of lawsuits or class actions (in claims) | claim | 2 | ||||
Maximum | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Loss contingency, aggregate range of reasonable loss (up to) | $ 860,000,000 | ||||
Standby letters of credit | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Standby letters of credit (SBLC) collateralized with cash and securities | 141,000,000 | 160,000,000 | |||
SBLC expiring within one year | 2,300,000,000 | ||||
SBLC expiring within one to five years | 1,100,000,000 | ||||
Commercial letters of credit | 3,367,000,000 | 3,531,000,000 | |||
Commercial letters of credit | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Commercial letters of credit | $ 191,000,000 | $ 122,000,000 |
Lines of business - Narrative (
Lines of business - Narrative (Details) | 3 Months Ended |
Mar. 31, 2018business | |
Segment Reporting [Abstract] | |
Number of principal businesses | 2 |
Lines of business - Contributio
Lines of business - Contribution of Segments to Overall Profitability (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Fee and other revenue | $ 3,270 | $ 2,860 | $ 3,018 |
Net interest revenue (expense) | 919 | 851 | 792 |
Provision for credit losses | (5) | (6) | (5) |
Income from consolidated investment management funds, net of noncontrolling interests | 1,171 | 1,175 | 922 |
Investment income (loss), net | (11) | 17 | 33 |
Net income (loss) attributable to noncontrolling interests | (9) | 6 | 15 |
Investment Services | |||
Segment Reporting Information [Line Items] | |||
Fee and other revenue | 2,250 | ||
Investment Management | |||
Segment Reporting Information [Line Items] | |||
Fee and other revenue | 1,012 | ||
Net income (loss) attributable to noncontrolling interests | (11) | 9 | 18 |
Other | |||
Segment Reporting Information [Line Items] | |||
Fee and other revenue | 8 | ||
Operating segments | |||
Segment Reporting Information [Line Items] | |||
Fee and other revenue | 3,270 | 2,868 | 3,033 |
Net interest revenue (expense) | 919 | 851 | 792 |
Total revenue (loss) | 4,189 | 3,719 | 3,825 |
Provision for credit losses | (5) | (6) | (5) |
Noninterest expense | 2,741 | 3,003 | 2,639 |
Income (loss) before taxes | $ 1,453 | $ 722 | $ 1,191 |
Pre-tax operating margin | 35.00% | 20.00% | 31.00% |
Average assets | $ 358,175 | $ 350,786 | $ 336,200 |
Net income (loss) attributable to noncontrolling interests | 2 | (3) | (3) |
Operating segments | Investment Services | |||
Segment Reporting Information [Line Items] | |||
Fee and other revenue | 2,250 | 2,141 | 2,084 |
Net interest revenue (expense) | 844 | 813 | 707 |
Total revenue (loss) | 3,094 | 2,954 | 2,791 |
Provision for credit losses | (7) | (2) | 0 |
Noninterest expense | 1,949 | 2,097 | 1,849 |
Income (loss) before taxes | $ 1,152 | $ 859 | $ 942 |
Pre-tax operating margin | 37.00% | 29.00% | 34.00% |
Average assets | $ 278,095 | $ 260,494 | $ 251,027 |
Operating segments | Investment Management | |||
Segment Reporting Information [Line Items] | |||
Fee and other revenue | 1,012 | 974 | 877 |
Net interest revenue (expense) | 76 | 74 | 86 |
Total revenue (loss) | 1,088 | 1,048 | 963 |
Provision for credit losses | 2 | 1 | 3 |
Noninterest expense | 705 | 771 | 683 |
Income (loss) before taxes | $ 381 | $ 276 | $ 277 |
Pre-tax operating margin | 35.00% | 26.00% | 29.00% |
Average assets | $ 31,963 | $ 31,681 | $ 31,067 |
Income from consolidated investment management funds, net of noncontrolling interests | 1 | 8 | 15 |
Investment income (loss), net | (11) | 17 | 33 |
Net income (loss) attributable to noncontrolling interests | (11) | 9 | 18 |
Operating segments | Other | |||
Segment Reporting Information [Line Items] | |||
Fee and other revenue | 8 | (247) | 72 |
Net interest revenue (expense) | (1) | (36) | (1) |
Total revenue (loss) | 7 | (283) | 71 |
Provision for credit losses | 0 | (5) | (8) |
Noninterest expense | 87 | 135 | 107 |
Income (loss) before taxes | (80) | (413) | (28) |
Average assets | $ 48,117 | $ 58,611 | $ 54,106 |
Supplemental information to 111
Supplemental information to the Consolidated Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | ||
Transfers from loans to other assets for other real estate owned | $ 1 | $ 1 |
Change in assets of consolidated VIEs | 125 | 204 |
Change in liabilities of consolidated VIEs | 9 | 106 |
Change in nonredeemable noncontrolling interests of consolidated investment management funds | 104 | 84 |
Securities purchased not settled | 414 | 580 |
Securities sold not settled | 30 | 81 |
Available-for-sale securities transferred to trading assets | 963 | 0 |
Held-to-maturity securities transferred to available-for-sale | 1,087 | 0 |
Premises and equipment/capitalized software funded by capital lease obligations | $ 15 | $ 1 |