Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2019shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2019 |
Document Transition Report | false |
Entity File Number | 001-35651 |
Entity Registrant Name | THE BANK OF NEW YORK MELLON CORPORATION |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 13-2614959 |
Entity Address, Address Line One | 240 Greenwich Street |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10286 |
City Area Code | 212 |
Local Phone Number | 495-1784 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding (shares) | 942,662,027 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
Current Fiscal Year End Date | --12-31 |
Entity Central Index Key | 0001390777 |
Amendment Flag | false |
Common Stock, $0.01 par value | New York Stock Exchange | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock, $0.01 par value |
Trading Symbol | BK |
Security Exchange Name | NYSE |
Series C Noncumulative Perpetual Preferred Stock | New York Stock Exchange | |
Entity Information [Line Items] | |
Title of 12(b) Security | Depositary Shares, each representing 1/4,000th of a share of Series C Noncumulative Preferred Stock |
Trading Symbol | BK PrC |
Security Exchange Name | NYSE |
6.244% Fixed-to-Floating Rate Normal Preferred Capital Securities of Mellon Capital IV | New York Stock Exchange | |
Entity Information [Line Items] | |
Title of 12(b) Security | 6.244% Fixed-to-Floating Rate Normal Preferred Capital Securities of Mellon Capital IV |
Trading Symbol | BK/P |
Security Exchange Name | NYSE |
Consolidated Income Statement (
Consolidated Income Statement (unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Fee and other revenue | ||||||
Asset servicing fees | $ 1,141 | $ 1,122 | $ 1,157 | $ 2,263 | $ 2,325 | |
Clearing services fees | [1] | 410 | 398 | 401 | 808 | 825 |
Issuer services fees | 291 | 251 | 266 | 542 | 526 | |
Treasury services fees | 140 | 132 | 140 | 272 | 278 | |
Total investment services fees | [1] | 1,982 | 1,903 | 1,964 | 3,885 | 3,954 |
Investment management and performance fees | [1] | 833 | 841 | 901 | 1,674 | 1,851 |
Foreign exchange and other trading revenue | 166 | 170 | 187 | 336 | 396 | |
Financing-related fees | 50 | 51 | 53 | 101 | 105 | |
Distribution and servicing | 31 | 31 | 34 | 62 | 70 | |
Investment and other income | 43 | 35 | 70 | 78 | 152 | |
Total fee revenue | 3,105 | 3,031 | 3,209 | 6,136 | 6,528 | |
Net securities gains (losses) — including other-than-temporary impairment | 8 | 1 | 1 | 9 | (48) | |
Noncredit-related portion of other-than-temporary impairment (recognized in other comprehensive income) | 1 | 0 | 0 | 1 | 0 | |
Total net securities gains (losses) | 7 | 1 | 1 | 8 | (48) | |
Total fee and other revenue | 3,112 | 3,032 | 3,210 | 6,144 | 6,480 | |
Operations of consolidated investment management funds | ||||||
Investment income | 10 | 26 | 13 | 36 | 2 | |
Interest of investment management fund note holders | 0 | 0 | 1 | 0 | 1 | |
Income from consolidated investment management funds | 10 | 26 | 12 | 36 | 1 | |
Net interest revenue | ||||||
Interest revenue | 1,965 | 1,920 | 1,553 | 3,885 | 2,934 | |
Interest expense | 1,163 | 1,079 | 637 | 2,242 | 1,099 | |
Net interest revenue | 802 | 841 | 916 | 1,643 | 1,835 | |
Total revenue | 3,924 | 3,899 | 4,138 | 7,823 | 8,316 | |
Provision for credit losses | (8) | 7 | (3) | (1) | (8) | |
Noninterest expense | ||||||
Staff | 1,421 | 1,524 | 1,489 | 2,945 | 3,065 | |
Professional, legal and other purchased services | 337 | 325 | 328 | 662 | 619 | |
Software and equipment | 304 | 283 | 266 | 587 | 500 | |
Net occupancy | 138 | 137 | 156 | 275 | 295 | |
Sub-custodian and clearing | 115 | 105 | 110 | 220 | 229 | |
Distribution and servicing | 94 | 91 | 106 | 185 | 212 | |
Business development | 56 | 45 | 62 | 101 | 113 | |
Bank assessment charges | 31 | 31 | 47 | 62 | 99 | |
Amortization of intangible assets | 30 | 29 | 48 | 59 | 97 | |
Other | 121 | 129 | 135 | 250 | 257 | |
Total noninterest expense | 2,647 | 2,699 | 2,747 | 5,346 | 5,486 | |
Income | ||||||
Income before income taxes | 1,285 | 1,193 | 1,394 | 2,478 | 2,838 | |
Provision for income taxes | 264 | 237 | 286 | 501 | 568 | |
Net income | 1,021 | 956 | 1,108 | 1,977 | 2,270 | |
Net (income) loss attributable to noncontrolling interests (includes $(4), $(10), $(7), $(14) and $4 related to consolidated investment management funds, respectively) | (4) | (10) | (5) | (14) | 4 | |
Net income applicable to shareholders of The Bank of New York Mellon Corporation | 1,017 | 946 | 1,103 | 1,963 | 2,274 | |
Preferred stock dividends | (48) | (36) | (48) | (84) | (84) | |
Net income applicable to common shareholders of The Bank of New York Mellon Corporation | 969 | 910 | 1,055 | 1,879 | 2,190 | |
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 | 969 | 910 | 1,055 | 1,879 | 2,190 | |
Less: Earnings allocated to participating securities | 4 | 5 | 7 | 9 | 15 | |
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 | $ 965 | $ 905 | $ 1,048 | $ 1,870 | $ 2,175 | |
Average common shares and equivalents outstanding of The Bank of New York Mellon Corporation | ||||||
Basic (shares) | 951,281 | 962,397 | 1,010,179 | 956,887 | 1,013,507 | |
Common stock equivalents (shares) | 3,891 | 6,071 | 6,451 | 4,894 | 7,277 | |
Less: Participating securities (shares) | (1,244) | (2,508) | (2,273) | (1,824) | (2,764) | |
Diluted (shares) | 953,928 | 965,960 | 1,014,357 | 959,957 | 1,018,020 | |
Anti-dilutive securities (shares) | [2] | 3,999 | 5,550 | 7,208 | 4,704 | 7,203 |
Earnings per share applicable to the common shareholders of The Bank of New York Mellon Corporation | ||||||
Basic (usd per share) | $ 1.01 | $ 0.94 | $ 1.04 | $ 1.95 | $ 2.15 | |
Diluted (usd per share) | $ 1.01 | $ 0.94 | $ 1.03 | $ 1.95 | $ 2.14 | |
[1] | In the first quarter of 2019, we reclassified certain platform-related fees to clearing services fees from investment management and performance fees. Prior periods have been reclassified. | |||||
[2] | 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. |
Consolidated Income Statement_2
Consolidated Income Statement (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net (income) loss attributable to noncontrolling interests | $ (4) | $ (10) | $ (5) | $ (14) | $ 4 |
Investment Management | |||||
Net (income) loss attributable to noncontrolling interests | $ 4 | $ 10 | $ 7 | $ (14) | $ 4 |
Consolidated Comprehensive Inco
Consolidated Comprehensive Income Statement (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $ 1,021 | $ 956 | $ 1,108 | $ 1,977 | $ 2,270 | |
Other comprehensive income (loss), net of tax: | ||||||
Foreign currency translation adjustments | 10 | 29 | (400) | 39 | (156) | |
Unrealized gain (loss) on assets available-for-sale: | ||||||
Unrealized gain (loss) arising during the period | 287 | 239 | (64) | 526 | (339) | |
Reclassification adjustment | (5) | (1) | 0 | (6) | 37 | |
Total unrealized gain (loss) on assets available-for-sale | 282 | 238 | (64) | 520 | (302) | |
Defined benefit plans: | ||||||
Net (loss) arising during the period | 0 | (9) | 0 | (9) | 0 | |
Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost | 10 | 10 | 16 | 20 | 33 | |
Total defined benefit plans | 10 | 1 | 16 | 11 | 33 | |
Net unrealized gain (loss) on cash flow hedges | 0 | 5 | (14) | 5 | (16) | |
Total other comprehensive income (loss) income, net of tax | [1] | 302 | 273 | (462) | 575 | (441) |
Total comprehensive income | 1,323 | 1,229 | 646 | 2,552 | 1,829 | |
Net (income) loss attributable to noncontrolling interests | (4) | (10) | (5) | (14) | 4 | |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | (2) | 10 | (2) | 5 | |
Comprehensive income applicable to shareholders of The Bank of New York Mellon Corporation | 1,319 | 1,217 | 651 | 2,536 | 1,838 | |
Other comprehensive (loss) income attributable to The Bank of New York Mellon Corporation shareholders | $ 302 | $ 271 | $ (452) | $ 573 | $ (436) | |
[1] | Other comprehensive income (loss) attributable to The Bank of New York Mellon Corporation shareholders was $302 million for the quarter ended June 30, 2019 , $271 million for the quarter ended March 31, 2019 , $(452) million for the quarter ended June 30, 2018 , $573 million for the six months ended June 30, 2019 and $(436) million for the six months ended June 30, 2018 . |
Consolidated Balance Sheet (una
Consolidated Balance Sheet (unaudited) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |||
Securities: | |||||
Held-to-maturity (fair value of $34,695 and $33,302) | $ 34,549 | $ 33,982 | |||
Available-for-sale | 85,593 | 85,809 | |||
Loans | 52,396 | 56,564 | |||
Allowance for loan losses | (146) | ||||
Goodwill | 17,337 | 17,350 | |||
Intangible assets | 3,160 | 3,220 | |||
Other assets (includes $591 and $742, at fair value) | 23,737 | 21,298 | |||
Total assets | 381,168 | 362,873 | |||
Deposits: | |||||
Total liabilities | 339,333 | 322,005 | |||
Temporary equity | |||||
Redeemable noncontrolling interests | 136 | 129 | |||
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 1,372,971,577 and 1,364,877,915 shares | 14 | 14 | |||
Additional paid-in capital | 27,406 | 27,118 | |||
Retained earnings | 30,081 | 28,652 | |||
Accumulated other comprehensive loss, net of tax | (2,688) | (3,171) | |||
Less: Treasury stock of 430,309,550 and 404,452,246 common shares, at cost | (16,822) | (15,517) | |||
Total The Bank of New York Mellon Corporation shareholders’ equity | 41,533 | 40,638 | |||
Nonredeemable noncontrolling interests of consolidated investment management funds | 166 | 101 | |||
Total permanent equity | [2] | 41,699 | [1] | 40,739 | [3] |
Total liabilities, temporary equity and permanent equity | 381,168 | 362,873 | |||
Investment Management funds | |||||
Securities: | |||||
Trading assets | 314 | 243 | |||
Assets of consolidated investment management funds, at fair value | 337 | 463 | |||
Deposits: | |||||
Liabilities of consolidated investment management funds, at fair value | 6 | 2 | |||
Operating segments | |||||
Assets | |||||
Cash and due from banks | 5,556 | 5,864 | |||
Interest-bearing deposits with the Federal Reserve and other central banks | 69,700 | 67,988 | |||
Interest-bearing deposits with banks ($2,036 and $2,394 is restricted) | 15,491 | 14,148 | |||
Federal funds sold and securities purchased under resale agreements | 61,201 | 46,795 | |||
Securities: | |||||
Held-to-maturity (fair value of $34,695 and $33,302) | 34,549 | 33,982 | |||
Available-for-sale | 85,593 | 85,809 | |||
Total securities | 120,142 | 119,791 | |||
Trading assets | 8,629 | 7,035 | |||
Loans | 52,396 | 56,564 | |||
Allowance for loan losses | (146) | (146) | |||
Net loans | 52,250 | 56,418 | |||
Premises and equipment | 2,970 | 1,832 | |||
Accrued interest receivable | 658 | 671 | |||
Goodwill | 17,337 | 17,350 | |||
Intangible assets | 3,160 | 3,220 | |||
Other assets (includes $591 and $742, at fair value) | 23,737 | 21,298 | |||
Total assets | 380,831 | 362,410 | |||
Deposits: | |||||
Noninterest-bearing (principally U.S. offices) | 58,255 | 70,783 | |||
Interest-bearing deposits in U.S. offices | 88,395 | 74,904 | |||
Interest-bearing deposits in non-U.S. offices | 106,227 | 93,091 | |||
Total deposits | 252,877 | 238,778 | |||
Federal funds purchased and securities sold under repurchase agreements | 11,757 | 14,243 | |||
Trading liabilities | 3,768 | 3,479 | |||
Payables to customers and broker-dealers | 18,946 | 19,731 | |||
Commercial paper | 8,894 | 1,939 | |||
Other borrowed funds | 1,921 | 3,227 | |||
Accrued taxes and other expenses | 5,045 | 5,669 | |||
Other liabilities (including allowance for lending-related commitments of $95 and $106, also includes $335 and $88, at fair value) | 7,916 | 5,774 | |||
Long-term debt (includes $383 and $371, at fair value) | 28,203 | 29,163 | |||
Total liabilities | 339,327 | 322,003 | |||
Operating segments | Investment Management funds | |||||
Securities: | |||||
Assets of consolidated investment management funds, at fair value | 337 | 463 | |||
Deposits: | |||||
Liabilities of consolidated investment management funds, at fair value | $ 6 | $ 2 | |||
[1] | (a) Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,683 million at March 31, 2019 and $37,991 million at June 30, 2019 | ||||
[2] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,096 million at Dec. 31, 2018 and $37,991 million at June 30, 2019 . | ||||
[3] | (a) Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,096 million at Dec. 31, 2018 and $37,683 million at March 31, 2019 . |
Consolidated Balance Sheet (u_2
Consolidated Balance Sheet (unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Restricted cash | $ 2,000 | $ 2,000 |
Held-to-maturity, fair value | 34,695 | 33,302 |
Long-term debt, fair value | $ 383 | $ 371 |
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) | 1,372,971,577 | 1,364,877,915 |
Treasury stock, common shares (shares) | 430,309,550 | 404,452,246 |
Operating segments | ||
Restricted cash | $ 2,036 | $ 2,394 |
Held-to-maturity, fair value | 34,695 | 33,302 |
Other assets, fair value | 591 | 742 |
Other liabilities, allowance for lending related commitments | 95 | 106 |
Other liabilities, fair value | 335 | 88 |
Long-term debt, fair value | $ 383 | $ 371 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities | ||
Net income | $ 1,977 | $ 2,270 |
Net (income) loss attributable to noncontrolling interests | (14) | 4 |
Net income applicable to shareholders of The Bank of New York Mellon Corporation | 1,963 | 2,274 |
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | ||
Provision for credit losses | (1) | (8) |
Pension plan contributions | (22) | (19) |
Depreciation and amortization | 635 | 677 |
Deferred tax (benefit) | (110) | (230) |
Net securities (gains) losses | (8) | 48 |
Change in trading assets and liabilities | (1,306) | (462) |
Change in accruals and other, net | (3,665) | (712) |
Net cash (used for) provided by operating activities | (2,514) | 1,568 |
Investing activities | ||
Change in interest-bearing deposits with banks | (1,618) | (4,592) |
Change in interest-bearing deposits with the Federal Reserve and other central banks | (1,714) | 15,583 |
Purchases of securities held-to-maturity | (3,739) | (2,944) |
Paydowns of securities held-to-maturity | 2,078 | 2,099 |
Maturities of securities held-to-maturity | 1,380 | 5,535 |
Purchases of securities available-for-sale | (21,503) | (17,550) |
Sales of securities available-for-sale | 6,346 | 4,867 |
Paydowns of securities available-for-sale | 3,226 | 3,871 |
Maturities of securities available-for-sale | 14,143 | 3,767 |
Net change in loans | 4,116 | 3,699 |
Sales of loans and other real estate | 52 | 6 |
Change in federal funds sold and securities purchased under resale agreements | (14,401) | 1,638 |
Net change in seed capital investments | 25 | 15 |
Purchases of premises and equipment/capitalized software | (717) | (505) |
Dispositions, net of cash | 0 | 84 |
Other, net | 940 | (359) |
Net cash (used for) provided by investing activities | (11,386) | 15,214 |
Financing activities | ||
Change in deposits | 14,255 | (12,270) |
Change in federal funds purchased and securities sold under repurchase agreements | (2,486) | (1,963) |
Change in payables to customers and broker-dealers | (778) | (1,051) |
Change in other borrowed funds | (1,328) | (5) |
Change in commercial paper | 6,955 | (567) |
Net proceeds from the issuance of long-term debt | 1,248 | 2,991 |
Repayments of long-term debt | (2,750) | (2,200) |
Proceeds from the exercise of stock options | 35 | 70 |
Issuance of common stock | 16 | 20 |
Treasury stock acquired | (1,305) | (1,295) |
Common cash dividends paid | (540) | (491) |
Preferred cash dividends paid | (84) | (84) |
Other, net | 7 | 10 |
Net cash provided by (used for) financing activities | 13,245 | (16,835) |
Effect of exchange rate changes on cash | (11) | (60) |
Change in cash and due from banks and restricted cash | ||
Change in cash and due from banks and restricted cash | (666) | (113) |
Cash and due from banks and restricted cash at beginning of period | 8,258 | 7,133 |
Cash and due from banks and restricted cash at end of period | 7,592 | 7,020 |
Cash and due from banks and restricted cash at end of period | 8,258 | 7,133 |
Supplemental disclosures | ||
Interest paid | 2,238 | 1,046 |
Income taxes paid | 461 | 436 |
Income taxes refunded | $ 347 | $ 57 |
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), 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 effect of applying the ASU | ASU 2014-09 | $ (55) | $ (55) | ||||||||
Adjustment for the cumulative effect 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 | 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 | 34 | |||||||||
Redemption of subsidiary shares from noncontrolling interests | (32) | |||||||||
Other net changes in noncontrolling interests | (273) | (13) | (260) | 13 | ||||||
Net income (loss) | 2,270 | 2,274 | (4) | |||||||
Other comprehensive income (loss) | (436) | (436) | ||||||||
Other comprehensive income (loss) | (5) | (5) | ||||||||
Dividends: | ||||||||||
Common stock | (491) | (491) | ||||||||
Preferred stock | (84) | (84) | ||||||||
Repurchase of common stock | (1,295) | (1,295) | ||||||||
Common stock issued under: | ||||||||||
Employee benefit plans | 17 | 17 | ||||||||
Direct stock purchase and dividend reinvestment plan | 16 | 16 | ||||||||
Stock awards and options exercised | 296 | 296 | ||||||||
Ending Balance at Jun. 30, 2018 | 41,557 | [1],[2] | 3,542 | 14 | 26,981 | 27,306 | (2,795) | (13,543) | 52 | 189 |
Common stock issued under: | ||||||||||
The Bank of New York Mellon Corporation shareholders’ equity | 38,186 | |||||||||
Beginning Balance at Mar. 31, 2018 | 41,940 | [2] | 3,542 | 14 | 26,911 | 26,496 | (2,343) | (12,892) | 212 | 184 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares issued to shareholders of noncontrolling interests | 17 | |||||||||
Other net changes in noncontrolling interests | (169) | (2) | (167) | 0 | ||||||
Net income (loss) | 1,110 | 1,103 | 7 | (2) | ||||||
Other comprehensive income (loss) | (452) | (452) | ||||||||
Other comprehensive income (loss) | (10) | (10) | ||||||||
Dividends: | ||||||||||
Common stock | (245) | (245) | ||||||||
Preferred stock | (48) | (48) | ||||||||
Repurchase of common stock | (651) | (651) | ||||||||
Common stock issued under: | ||||||||||
Employee benefit plans | 7 | 7 | ||||||||
Direct stock purchase and dividend reinvestment plan | 7 | 7 | ||||||||
Stock awards and options exercised | 58 | 58 | ||||||||
Ending Balance at Jun. 30, 2018 | 41,557 | [1],[2] | 3,542 | 14 | 26,981 | 27,306 | (2,795) | (13,543) | 52 | 189 |
Common stock issued under: | ||||||||||
The Bank of New York Mellon Corporation shareholders’ equity | 37,963 | |||||||||
Adjustment for the cumulative effect of applying the ASU | ASU 2018-02 | 90 | (90) | ||||||||
Adjusted balance | 40,739 | 3,542 | 14 | 27,118 | 28,742 | (3,261) | (15,517) | 101 | 129 | |
The Bank of New York Mellon Corporation shareholders’ equity | 40,638 | 37,096 | ||||||||
Beginning Balance at Dec. 31, 2018 | 40,739 | [3],[4] | 3,542 | 14 | 27,118 | 28,652 | (3,171) | (15,517) | 101 | 129 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares issued to shareholders of noncontrolling interests | 20 | |||||||||
Redemption of subsidiary shares from noncontrolling interests | (7) | |||||||||
Other net changes in noncontrolling interests | 30 | 19 | 11 | (22) | ||||||
Net income (loss) | 956 | 946 | 10 | |||||||
Other comprehensive income (loss) | 271 | 271 | ||||||||
Other comprehensive income (loss) | 2 | 2 | ||||||||
Dividends: | ||||||||||
Common stock | (270) | (270) | ||||||||
Preferred stock | (36) | (36) | ||||||||
Repurchase of common stock | (555) | (555) | ||||||||
Common stock issued under: | ||||||||||
Employee benefit plans | 10 | 10 | ||||||||
Direct stock purchase and dividend reinvestment plan | 11 | 11 | ||||||||
Stock awards and options exercised | 191 | 191 | ||||||||
Ending Balance at Mar. 31, 2019 | 41,347 | [3],[5] | 3,542 | 14 | 27,349 | 29,382 | (2,990) | (16,072) | 122 | 122 |
Beginning Balance at Dec. 31, 2018 | 40,739 | [3],[4] | 3,542 | 14 | 27,118 | 28,652 | (3,171) | (15,517) | 101 | 129 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares issued to shareholders of noncontrolling interests | 36 | |||||||||
Redemption of subsidiary shares from noncontrolling interests | (7) | |||||||||
Other net changes in noncontrolling interests | 72 | 21 | 51 | (24) | ||||||
Net income (loss) | 1,977 | 1,963 | 14 | |||||||
Other comprehensive income (loss) | 573 | 573 | ||||||||
Other comprehensive income (loss) | 2 | 2 | ||||||||
Dividends: | ||||||||||
Common stock | (540) | (540) | ||||||||
Preferred stock | (84) | (84) | ||||||||
Repurchase of common stock | (1,305) | (1,305) | ||||||||
Common stock issued under: | ||||||||||
Employee benefit plans | 16 | 16 | ||||||||
Direct stock purchase and dividend reinvestment plan | 11 | 11 | ||||||||
Stock awards and options exercised | 240 | 240 | ||||||||
Ending Balance at Jun. 30, 2019 | 41,699 | [4],[5] | 3,542 | 14 | 27,406 | 30,081 | (2,688) | (16,822) | 166 | 136 |
Common stock issued under: | ||||||||||
The Bank of New York Mellon Corporation shareholders’ equity | 37,683 | |||||||||
Beginning Balance at Mar. 31, 2019 | 41,347 | [3],[5] | 3,542 | 14 | 27,349 | 29,382 | (2,990) | (16,072) | 122 | 122 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares issued to shareholders of noncontrolling interests | 16 | |||||||||
Other net changes in noncontrolling interests | 42 | 2 | 40 | (2) | ||||||
Net income (loss) | 1,021 | 1,017 | 4 | |||||||
Other comprehensive income (loss) | 302 | 302 | ||||||||
Other comprehensive income (loss) | 0 | 0 | ||||||||
Dividends: | ||||||||||
Common stock | (270) | (270) | ||||||||
Preferred stock | (48) | (48) | ||||||||
Repurchase of common stock | (750) | (750) | ||||||||
Common stock issued under: | ||||||||||
Employee benefit plans | 6 | 6 | ||||||||
Stock awards and options exercised | 49 | 49 | ||||||||
Ending Balance at Jun. 30, 2019 | 41,699 | [4],[5] | $ 3,542 | 14 | $ 27,406 | $ 30,081 | $ (2,688) | $ (16,822) | $ 166 | $ 136 |
Common stock issued under: | ||||||||||
The Bank of New York Mellon Corporation shareholders’ equity | $ 41,533 | $ 37,991 | ||||||||
[1] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,709 million at Dec. 31, 2017 and $37,963 million at June 30, 2018 . | |||||||||
[2] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $38,186 million at March 31, 2018 and $37,963 million at June 30, 2018 | |||||||||
[3] | (a) Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,096 million at Dec. 31, 2018 and $37,683 million at March 31, 2019 . | |||||||||
[4] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,096 million at Dec. 31, 2018 and $37,991 million at June 30, 2019 . | |||||||||
[5] | (a) Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,683 million at March 31, 2019 and $37,991 million at June 30, 2019 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||||
Dividends on common stock, cash paid (usd per share) | $ 0.28 | $ 0.28 | $ 0.24 | $ 0.56 | $ 0.48 |
Basis of presentation
Basis of presentation | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation In this Quarterly Report on Form 10-Q, references to “our,” “we,” “us,” “BNY Mellon,” the “Company” and similar terms refer to The Bank of New York Mellon Corporation and its consolidated subsidiaries. The term “Parent” refers to The Bank of New York Mellon Corporation but not its subsidiaries. Basis of presentation The accounting and financial reporting policies of BNY Mellon, a global financial services company, conform to U.S. GAAP and prevailing industry practices. For information on our significant accounting and reporting policies, see Note 1 in our 2018 Annual Report. 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 our 2018 Annual Report. Certain immaterial reclassifications have been made to prior periods to place them on a basis comparable with the 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, goodwill and other intangibles and litigation and regulatory contingencies. Among other effects, such changes in estimates could result in future impairments of goodwill and intangible assets and establishment of allowances for loan losses and lending-related commitments as well as accruals for litigation and regulatory contingencies. |
Accounting changes and new acco
Accounting changes and new accounting guidance | 6 Months Ended |
Jun. 30, 2019 | |
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 2019. ASU 2016-02, Leases In February 2016, the FASB issued an ASU, Leases . The primary objective of this ASU is to increase transparency and comparability by recognizing lease assets and liabilities on the balance sheet and expand related disclosures. This ASU requires a “right-of-use” asset and a payment obligation liability on the balance sheet for most leases and subleases. Additionally, depending on the lease classification under the standard, it may result in different expense recognition patterns and classification than under existing accounting principles. For leases classified as finance leases, it will result in higher expense recognition in the earlier periods and lower expense in the later periods of the lease. The Company adopted this guidance on Jan. 1, 2019 using the alternative transition method on a prospective basis and recognized right-of-use assets of $1.3 billion and lease liabilities of $1.5 billion on the consolidated balance sheet, both based on the present value of the expected remaining lease payments. See Note 6 for the disclosures required by this ASU. ASU 2018-02, Income Statement—Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued an ASU, Income Statement—Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU permits a reclassification from accumulated other comprehensive income to retained earnings for the tax effects of items within accumulated other comprehensive income that do not reflect the lower statutory tax rate which was enacted by the 2017 U.S. tax legislation. BNY Mellon adopted this guidance in the first quarter of 2019, which resulted in a $90 million |
Acquisitions and dispositions
Acquisitions and dispositions | 6 Months Ended |
Jun. 30, 2019 | |
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. Contingent payments were $2 million in the second quarter of 2019 and the first six months of 2019 . A t June 30, 2019 , we are potentially obligated to pay additional consideration which, using reasonable assumptions, could range from $4 million to $17 million over the next three years , but could be higher as certain of the arrangements do not contain a contractual maximum. The transactions described below did not have a material impact on BNY Mellon’s results of operations. Transactions in 2018 On Jan. 2, 2018, BNY Mellon completed the sale of CenterSquare, one of our Investment Management boutiques, and recorded a 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 consolidated balance sheet as a result of this sale. On June 29, 2018, BNY Mellon completed the exchange of its majority equity interest in Amherst Capital Management LLC for a minority equity stake in Amherst Holdings LLC. Goodwill of $13 million was removed from the consolidated balance sheet and a gain was recorded as a result of this sale. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2019 | |
Securities [Abstract] | |
Securities | Securities The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of securities at June 30, 2019 and Dec. 31, 2018 , respectively. Securities at June 30, 2019 Gross unrealized Amortized cost Fair value (in millions) Gains Losses Available-for-sale: Agency RMBS $ 26,225 $ 145 $ 166 $ 26,204 U.S. Treasury 13,805 424 32 14,197 Sovereign debt/sovereign guaranteed 12,184 161 3 12,342 Agency commercial MBS 9,499 194 15 9,678 Supranational 3,878 38 2 3,914 CLOs 3,665 1 17 3,649 Foreign covered bonds 3,385 17 4 3,398 U.S. government agencies 2,585 65 — 2,650 Other ABS 2,466 8 4 2,470 Non-agency commercial MBS 1,968 38 1 2,005 State and political subdivisions 1,253 28 1 1,280 Non-agency RMBS (a) 999 230 8 1,221 Corporate bonds 889 19 3 905 Other debt securities 1,671 9 — 1,680 Total securities available-for-sale (b) $ 84,472 $ 1,377 $ 256 $ 85,593 Held-to-maturity: Agency RMBS $ 26,591 $ 195 $ 127 $ 26,659 U.S. Treasury 4,467 24 9 4,482 U.S. government agencies 1,276 1 1 1,276 Agency commercial MBS 1,179 22 1 1,200 Sovereign debt/sovereign guaranteed 823 39 — 862 Non-agency RMBS 91 4 2 93 Foreign covered bonds 80 1 — 81 Supranational 25 — — 25 State and political subdivisions 17 — — 17 Total securities held-to-maturity $ 34,549 $ 286 $ 140 $ 34,695 Total securities $ 119,021 $ 1,663 $ 396 $ 120,288 (a) Includes $753 million that was included in the former Grantor Trust. (b) Includes gross unrealized gains of $36 million and gross unrealized losses of $76 million recorded in accumulated other comprehensive income related to 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, 2018 Gross unrealized Amortized cost Fair value (in millions) Gains Losses Available-for-sale: Agency RMBS $ 25,594 $ 83 $ 369 $ 25,308 U.S. Treasury 20,190 96 210 20,076 Sovereign debt/sovereign guaranteed 10,663 108 21 10,750 Agency commercial MBS 9,836 16 161 9,691 CLOs 3,410 — 46 3,364 Supranational 2,985 7 8 2,984 Foreign covered bonds 2,890 7 19 2,878 State and political subdivisions 2,251 18 22 2,247 Other ABS 1,776 1 4 1,773 U.S. government agencies 1,676 5 24 1,657 Non-agency commercial MBS 1,491 1 28 1,464 Non-agency RMBS (a) 1,095 241 11 1,325 Corporate bonds 1,074 6 26 1,054 Other debt securities 1,236 6 4 1,238 Total securities available-for-sale (b) $ 86,167 $ 595 $ 953 $ 85,809 Held-to-maturity: Agency RMBS $ 25,507 $ 32 $ 632 $ 24,907 U.S. Treasury 4,727 3 77 4,653 U.S. government agencies 1,497 — 10 1,487 Agency commercial MBS 1,195 — 26 1,169 Sovereign debt/sovereign guaranteed 833 26 — 859 Non-agency RMBS 100 4 2 102 Foreign covered bonds 80 1 — 81 Supranational 26 1 — 27 State and political subdivisions 17 — — 17 Total securities held-to-maturity $ 33,982 $ 67 $ 747 $ 33,302 Total securities $ 120,149 $ 662 $ 1,700 $ 119,111 (a) Includes $832 million that was included in the former Grantor Trust. (b) Includes gross unrealized gains of $39 million and gross unrealized losses of $87 million recorded in accumulated other comprehensive income related to 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 gains (losses) (in millions) 2Q19 1Q19 2Q18 YTD19 YTD18 Realized gross gains $ 12 $ 5 $ 2 $ 17 $ 4 Realized gross losses (5 ) (4 ) (1 ) (9 ) (52 ) Recognized gross impairments — — — — — Total net securities gains (losses) $ 7 $ 1 $ 1 $ 8 $ (48 ) The following table presents pre-tax net securities gains (losses) by type. Net securities gains (losses) (in millions) 2Q19 1Q19 2Q18 YTD19 YTD18 U.S. Treasury $ 3 $ 1 $ — $ 4 $ (4 ) Sovereign debt/sovereign guaranteed 2 1 — 3 — State and political subdivisions 2 — 1 2 (1 ) Agency RMBS — — — — (42 ) Other — (1 ) — (1 ) (1 ) Total net securities gains (losses) $ 7 $ 1 $ 1 $ 8 $ (48 ) Temporarily impaired securities At June 30, 2019 , the gross unrealized losses on the securities portfolio were primarily attributable to an increase in interest rates from the 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, $76 million of the unrealized losses at June 30, 2019 and $87 million at Dec. 31, 2018 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 securities 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. Temporarily impaired securities at June 30, 2019 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: Agency RMBS $ 9,070 $ 31 $ 7,410 $ 135 $ 16,480 $ 166 U.S. Treasury 74 1 2,961 31 3,035 32 Sovereign debt/sovereign guaranteed 1,680 1 738 2 2,418 3 Agency commercial MBS 2,353 6 1,030 9 3,383 15 Supranational 814 1 206 1 1,020 2 CLOs 1,346 4 1,134 13 2,480 17 Foreign covered bonds 568 1 707 3 1,275 4 Other ABS 1,053 4 31 — 1,084 4 Non-agency commercial MBS 414 1 38 — 452 1 State and political subdivisions — — 116 1 116 1 Non-agency RMBS (a) 26 — 121 8 147 8 Corporate bonds 26 — 238 3 264 3 Total securities available-for-sale (b) $ 17,424 $ 50 $ 14,730 $ 206 $ 32,154 $ 256 Held-to-maturity: Agency RMBS $ 623 $ 1 $ 12,922 $ 126 $ 13,545 $ 127 U.S. Treasury — — 2,066 9 2,066 9 U.S. government agencies 50 — 407 1 457 1 Agency commercial MBS — — 57 1 57 1 Non-agency RMBS 7 — 42 2 49 2 Total securities held-to-maturity $ 680 $ 1 $ 15,494 $ 139 $ 16,174 $ 140 Total temporarily impaired securities $ 18,104 $ 51 $ 30,224 $ 345 $ 48,328 $ 396 (a) Includes $6 million of securities with an unrealized loss of less than $1 million for less than 12 months and $3 million of securities with an unrealized loss of less than $1 million for 12 months or more that were included in the former Grantor Trust. (b) Includes gross unrealized losses of $76 million for 12 months or more recorded in accumulated other comprehensive income related to 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, 2018 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: Agency RMBS $ 6,678 $ 30 $ 9,250 $ 339 $ 15,928 $ 369 U.S. Treasury 6,126 23 6,880 187 13,006 210 Sovereign debt/sovereign guaranteed 2,185 8 988 13 3,173 21 Agency commercial MBS 4,505 50 3,082 111 7,587 161 CLOs 3,280 46 2 — 3,282 46 Supranational 974 2 481 6 1,455 8 Foreign covered bonds 1,058 7 736 12 1,794 19 State and political subdivisions 316 1 668 21 984 22 Other ABS 1,289 4 23 — 1,312 4 U.S. government agencies 513 4 673 20 1,186 24 Non-agency commercial MBS 1,015 14 362 14 1,377 28 Non-agency RMBS (a) 94 1 157 10 251 11 Corporate bonds 685 24 50 2 735 26 Other debt securities 397 1 256 3 653 4 Total securities available-for-sale (b) $ 29,115 $ 215 $ 23,608 $ 738 $ 52,723 $ 953 Held-to-maturity: Agency RMBS $ 4,602 $ 56 $ 17,107 $ 576 $ 21,709 $ 632 U.S. Treasury 157 2 4,343 75 4,500 77 U.S. government agencies — — 1,111 10 1,111 10 Agency commercial MBS 477 7 654 19 1,131 26 Non-agency RMBS 22 1 31 1 53 2 Total securities held-to-maturity $ 5,258 $ 66 $ 23,246 $ 681 $ 28,504 $ 747 Total temporarily impaired securities $ 34,373 $ 281 $ 46,854 $ 1,419 $ 81,227 $ 1,700 (a) Includes $22 million of securities with an unrealized loss of less than $1 million for less than 12 months and $3 million of securities with an unrealized loss of less than $1 million for 12 months or more that were included in the former Grantor Trust. (b) Includes gross unrealized losses of $87 million for 12 months or more recorded in accumulated other comprehensive income related to 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 securities portfolio. Maturity distribution and yields on securities at June 30, 2019 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 $ 3,152 2.59 % $ 80 2.28 % $ 189 2.97 % $ 7,148 1.32 % $ — — % $ 10,569 Over 1 through 5 years 5,057 1.81 991 2.68 849 3.16 12,999 1.34 — — 19,896 Over 5 through 10 years 3,283 2.31 1,579 2.81 130 3.05 1,883 0.84 — — 6,875 Over 10 years 2,705 3.11 — — 112 2.96 209 1.78 — — 3,026 Mortgage-backed securities — — — — — — — — 39,108 3.18 39,108 Asset-backed securities — — — — — — — — 6,119 3.33 6,119 Total $ 14,197 2.35 % $ 2,650 2.74 % $ 1,280 3.10 % $ 22,239 1.30 % $ 45,227 3.20 % $ 85,593 Securities held-to-maturity: One year or less $ 1,556 1.48 % $ 333 1.31 % $ — — % $ 82 0.64 % $ — — % $ 1,971 Over 1 through 5 years 2,600 1.96 759 2.33 3 5.68 487 0.57 — — 3,849 Over 5 through 10 years 311 2.18 172 2.89 — — 359 0.81 — — 842 Over 10 years — — 12 3.25 14 4.76 — — — — 26 Mortgage-backed securities — — — — — — — — 27,861 2.98 27,861 Total $ 4,467 1.81 % $ 1,276 2.15 % $ 17 4.93 % $ 928 0.67 % $ 27,861 2.98 % $ 34,549 (a) Yields are based upon the amortized cost of securities. Other-than-temporary impairment For each security in the securities portfolio, a quarterly review is conducted to determine if an OTTI has occurred. See Note 1 of the Notes to Consolidated Financial Statements in our 2018 Annual Report for a discussion of the determination of OTTI. The following table reflects 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) 2Q19 2Q18 Beginning balance as of March 31 $ 77 $ 80 Add: Initial OTTI credit losses — — Subsequent OTTI credit losses — — Less: Realized losses for securities sold — 1 Ending balance as of June 30 $ 77 $ 79 Debt securities credit loss roll forward (in millions) YTD19 YTD18 Beginning balance as of Dec. 31 $ 78 $ 84 Add: Initial OTTI credit losses — — Subsequent OTTI credit losses — — Less: Realized losses for securities sold 1 5 Ending balance as of June 30 $ 77 $ 79 Pledged assets At June 30, 2019 , BNY Mellon had pledged assets of $117 billion , including $90 billion pledged as collateral for potential borrowings at the Federal Reserve Discount Window and $7 billion pledged as collateral for borrowing at the FHLB. The components of the assets pledged at June 30, 2019 included $98 billion of securities, $14 billion of loans, $5 billion of trading assets and less than $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, 2018 , BNY Mellon had pledged assets of $120 billion , including $96 billion pledged as collateral for potential borrowing at the Federal Reserve Discount Window and $7 billion pledged as collateral for borrowing at the FHLB. The components of the assets pledged at Dec. 31, 2018 included $100 billion of securities, $15 billion of loans, $4 billion of trading assets and $1 billion of interest-bearing deposits with banks. At June 30, 2019 and Dec. 31, 2018 , pledged assets included $19 billion and $13 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 June 30, 2019 and Dec. 31, 2018 , the market value of the securities received that can be sold or repledged was $164 billion and $151 billion , respectively. We routinely sell or repledge these securities through delivery to third parties. As of June 30, 2019 and Dec. 31, 2018 , the market value of securities collateral sold or repledged was $101 billion and $101 billion , respectively. Restricted cash and securities Cash and securities may be segregated under federal and other regulations or requirements. At June 30, 2019 and Dec. 31, 2018 , cash segregated under federal and other regulations or requirements was $2 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 $2 billion at June 30, 2019 and $2 billion at Dec. 31, 2018 |
Loans and asset quality
Loans and asset quality | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and Dec. 31, 2018 . Loans June 30, 2019 Dec. 31, 2018 (in millions) Domestic: Commercial $ 1,452 $ 1,949 Commercial real estate 5,192 4,787 Financial institutions 4,574 5,091 Lease financings 662 706 Wealth management loans and mortgages 15,579 15,843 Other residential mortgages 549 594 Overdrafts 1,575 1,550 Other 1,122 1,181 Margin loans 10,152 13,343 Total domestic 40,857 45,044 Foreign: Commercial 285 183 Commercial real estate 7 — Financial institutions 6,948 6,492 Lease financings 563 551 Wealth management loans and mortgages 90 122 Other (primarily overdrafts) 3,196 4,031 Margin loans 450 141 Total foreign 11,539 11,520 Total loans (a) $ 52,396 $ 56,564 (a) Net of unearned income of $340 million at June 30, 2019 and $358 million at Dec. 31, 2018 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 receivables and provide additional information about our credit risks and the adequacy of our allowance for credit losses. Allowance for credit losses Activity in the allowance for credit losses is summarized as follows. Allowance for credit losses activity for the quarter ended June 30, 2019 Wealth management loans and mortgages Other residential mortgages (in millions) Commercial Commercial real estate Financial institutions Lease financings All other Foreign Total Beginning balance $ 82 $ 74 $ 23 $ 4 $ 21 $ 15 $ — $ 29 $ 248 Charge-offs — — — — (1 ) — — — (1 ) Recoveries — — — — — 2 — — 2 Net (charge-offs) recoveries — — — — (1 ) 2 — — 1 Provision (5 ) (2 ) (2 ) — — (3 ) — 4 (8 ) Ending balance $ 77 $ 72 $ 21 $ 4 $ 20 $ 14 $ — $ 33 $ 241 Allowance for: Loan losses $ 23 $ 57 $ 8 $ 4 $ 17 $ 14 $ — $ 23 $ 146 Lending-related commitments 54 15 13 — 3 — — 10 95 Individually evaluated for impairment: Loan balance $ 96 $ — $ — $ — $ 16 $ — $ — $ — $ 112 Allowance for loan losses 10 — — — — — — — 10 Collectively evaluated for impairment: Loan balance $ 1,356 $ 5,192 $ 4,574 $ 662 $ 15,563 $ 549 $ 12,849 (a) $ 11,539 $ 52,284 Allowance for loan losses 13 57 8 4 17 14 — 23 136 (a) Includes $1,575 million of domestic overdrafts, $10,152 million of margin loans and $1,122 million of other loans at June 30, 2019 . Allowance for credit losses activity for the quarter ended March 31, 2019 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 $ 22 $ 5 $ 21 $ 16 $ — $ 32 $ 252 Charge-offs (11 ) — — — — — — — (11 ) Recoveries — — — — — — — — — Net charge-offs (11 ) — — — — — — — (11 ) Provision 12 (1 ) 1 (1 ) — (1 ) — (3 ) 7 Ending balance $ 82 $ 74 $ 23 $ 4 $ 21 $ 15 $ — $ 29 $ 248 Allowance for: Loan losses $ 24 $ 56 $ 10 $ 4 $ 18 $ 15 $ — $ 19 $ 146 Lending-related commitments 58 18 13 — 3 — — 10 102 Individually evaluated for impairment: Loan balance $ 96 $ — $ — $ — $ 4 $ — $ — $ — $ 100 Allowance for loan losses 10 — — — — — — — 10 Collectively evaluated for impairment: Loan balance $ 1,626 $ 4,921 $ 4,652 $ 653 $ 15,724 $ 574 $ 13,913 (a) $ 11,324 $ 53,387 Allowance for loan losses 14 56 10 4 18 15 — 19 136 (a) Includes $654 million of domestic overdrafts, $12,107 million of margin loans and $1,152 million of other loans at March 31, 2019 . Allowance for credit losses activity for the quarter ended June 30, 2018 Wealth management loans and mortgages Other residential mortgages All other Foreign Total (in millions) Commercial Commercial real estate Financial institutions Lease financings Beginning balance $ 75 $ 75 $ 22 $ 7 $ 23 $ 19 $ — $ 35 $ 256 Charge-offs — — — — — — — — — Recoveries — — — — — 1 — — 1 Net recoveries — — — — — 1 — — 1 Provision 1 (1 ) 2 (1 ) — (2 ) — (2 ) (3 ) Ending balance $ 76 $ 74 $ 24 $ 6 $ 23 $ 18 $ — $ 33 $ 254 Allowance for: Loan losses $ 17 $ 55 $ 8 $ 6 $ 19 $ 18 $ — $ 22 $ 145 Lending-related commitments 59 19 16 — 4 — — 11 109 Individually evaluated for impairment: Loan balance $ — $ — $ — $ — $ 5 $ — $ — $ — $ 5 Allowance for loan losses — — — — — — — — — Collectively evaluated for impairment: Loan balance $ 2,117 $ 4,974 $ 5,526 $ 758 $ 16,186 $ 653 $ 17,173 (a) $ 10,384 $ 57,771 Allowance for loan losses 17 55 8 6 19 18 — 22 145 (a) Includes $1,090 million of domestic overdrafts, $14,914 million of margin loans and $1,169 million of other loans at June 30, 2018 . Allowance for credit losses activity for the six months ended June 30, 2019 Wealth management loans and mortgages Other All Foreign Total (in millions) Commercial Commercial Financial Lease Beginning balance $ 81 $ 75 $ 22 $ 5 $ 21 $ 16 $ — $ 32 $ 252 Charge-offs (11 ) — — — (1 ) — — — (12 ) Recoveries — — — — — 2 — — 2 Net (charge-offs) recoveries (11 ) — — — (1 ) 2 — — (10 ) Provision 7 (3 ) (1 ) (1 ) — (4 ) — 1 (1 ) Ending balance $ 77 $ 72 $ 21 $ 4 $ 20 $ 14 $ — $ 33 $ 241 Allowance for credit losses activity for the six months ended June 30, 2018 Wealth management loans and mortgages Other All Foreign Total (in millions) Commercial Commercial Financial Lease Beginning balance $ 77 $ 76 $ 23 $ 8 $ 22 $ 20 $ — $ 35 $ 261 Charge-offs — — — — — — — — — Recoveries — — — — — 1 — — 1 Net recoveries — — — — — 1 — — 1 Provision (1 ) (2 ) 1 (2 ) 1 (3 ) — (2 ) (8 ) Ending balance $ 76 $ 74 $ 24 $ 6 $ 23 $ 18 $ — $ 33 $ 254 Nonperforming assets The table below presents our nonperforming assets. Nonperforming assets (in millions) June 30, 2019 Dec. 31, 2018 Nonperforming loans: Commercial $ 96 $ — Other residential mortgages 65 67 Wealth management loans and mortgages 23 9 Total nonperforming loans 184 76 Other assets owned 2 3 Total nonperforming assets (a) $ 186 $ 79 (a) In the second quarter of 2019, we refined the application of our nonperforming assets policy for first lien residential mortgage loans greater than 90 days delinquent that resulted in a $12 million increase in nonperforming assets. At June 30, 2019 , undrawn commitments to borrowers whose loans were classified as nonaccrual or reduced rate were not material. Lost interest Interest revenue would have increased by $4 million in the second quarter of 2019 , $2 million in the first quarter of 2019 , $1 million in the second quarter of 2018 , $7 million in the first six months of 2019 and $2 million in the first six months of 2018 if nonperforming loans at period-end had been performing for the entire respective period. Impaired loans The tables below present information about our impaired loans. Impaired loans 2Q19 1Q19 2Q18 YTD19 YTD18 (in millions) Average recorded investment Interest revenue recognized Average recorded investment Interest revenue recognized Average recorded investment Interest revenue recognized Average recorded investment Interest revenue recognized Average recorded investment Interest revenue recognized Impaired loans with an allowance: Commercial $ 96 $ — $ 48 $ — $ — $ — $ 64 $ — $ — $ — Wealth management loans and mortgages — — — — 1 — — — 1 — Total impaired loans with an allowance 96 — 48 — 1 — 64 — 1 — Impaired loans without an allowance: (a) Wealth management loans and mortgages 10 — 4 — 4 — 8 — 4 — Total impaired loans $ 106 $ — $ 52 $ — $ 5 $ — $ 72 $ — $ 5 $ — (a) When the discounted cash flows, collateral value or market price equals or exceeds the carrying value of the loan, then the loan does not require an allowance under the accounting standard related to impaired loans. Impaired loans June 30, 2019 Dec. 31, 2018 (in millions) Recorded investment Unpaid principal balance Related allowance (a) Recorded investment Unpaid principal balance Related allowance (a) Impaired loans with an allowance: Commercial $ 96 $ 96 $ 10 $ — $ — $ — Impaired loans without an allowance: (b) Wealth management loans and mortgages 16 16 N/A 4 4 N/A Total impaired loans (c) $ 112 $ 112 $ 10 $ 4 $ 4 $ — (a) The allowance for impaired loans is included in the allowance for loan losses. (b) When the discounted cash flows, collateral value or market price equals or exceeds the carrying value of the loan, then the loan does not require an allowance under the accounting standard related to impaired loans. (c) Excludes an aggregate of less than $1 million of impaired loans in amounts individually less than $1 million at both June 30, 2019 and Dec. 31, 2018 , respectively. The allowance for loan losses associated with these loans totaled less than $1 million at both June 30, 2019 and Dec. 31, 2018 , respectively. N/A - Not applicable. Past due loans The table below presents our past due loans. Past due loans and still accruing interest June 30, 2019 Dec. 31, 2018 Days past due Total past due Days past due Total past due (in millions) 30-59 60-89 ≥90 30-59 60-89 ≥90 Wealth management loans and mortgages $ 19 $ 2 $ — $ 21 $ 22 $ 1 $ 5 $ 28 Other residential mortgages 11 1 — 12 12 6 7 25 Financial institutions 10 — — 10 3 3 — 6 Commercial real estate 9 — — 9 1 — — 1 Total past due loans $ 49 $ 3 $ — $ 52 $ 38 $ 10 $ 12 $ 60 Troubled debt restructurings 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 less than $1 million in the second quarter of 2019 , $1 million in the second quarter of 2018 and less than $1 million in the first quarter of 2019 . The loans were 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 June 30, 2019 Dec. 31, 2018 June 30, 2019 Dec. 31, 2018 June 30, 2019 Dec. 31, 2018 (in millions) Investment grade $ 1,555 $ 2,036 $ 4,577 $ 4,184 $ 9,338 $ 9,586 Non-investment grade 182 96 622 603 2,184 1,997 Total $ 1,737 $ 2,132 $ 5,199 $ 4,787 $ 11,522 $ 11,583 The commercial loan portfolio is divided into investment grade and non-investment grade categories based on the assigned internal credit ratings, which are generally consistent with those 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 June 30, 2019 Dec. 31, 2018 (in millions) Wealth management loans: Investment grade $ 6,673 $ 6,901 Non-investment grade 161 106 Wealth management mortgages 8,835 8,958 Total $ 15,669 $ 15,965 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 June 30, 2019 . At June 30, 2019 , the wealth management mortgage portfolio consisted of the following geographic concentrations: California - 23% ; New York - 18% ; Massachusetts - 10% ; Florida - 8% ; and other - 41% . Other residential mortgages The other residential mortgage portfolio primarily consists of 1-4 family residential mortgage loans and totaled $549 million at June 30, 2019 and $594 million at Dec. 31, 2018 . These loans are not typically correlated to external ratings. Included in this portfolio at June 30, 2019 were $111 million of mortgage loans purchased in 2005, 2006 and the first quarter of 2007, of which, 10% of the serviced loan balance was at least 60 days delinquent. Overdrafts Overdrafts primarily relate to custody and securities clearance clients and totaled $4.7 billion at June 30, 2019 and $5.5 billion at Dec. 31, 2018 . 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 $10.6 billion of secured margin loans on our consolidated balance sheet at June 30, 2019 compared with $13.5 billion at Dec. 31, 2018 . 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. |
Leasing
Leasing | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leasing | Leasing Significant accounting policy We determine if an arrangement is a lease at inception. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments. The ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. We use our incremental borrowing rate based on the information available at commencement date of the lease in determining the present value of lease payments. In addition to the lease payments, the determination of an ROU asset may also include certain adjustments related to lease incentives and initial direct costs incurred. Options to extend or terminate a lease are included in the determination of the ROU asset and lease liability only when it is reasonably certain that we will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term, while the lease expense for finance leases is recognized using the effective interest method. ROU assets are reviewed for impairment when events or circumstances indicate that the carrying amount may not be recoverable. For operating leases, if deemed impaired, the ROU asset is written down and the remaining balance is subsequently amortized on a straight-line basis which results in lease expense recognition that is similar to finance leases. We have elected to account for the lease and non-lease components as a single lease component and exclude the non-lease variable components. Additionally, for certain equipment leases, we apply a portfolio approach to account for the operating lease ROU assets and liabilities. BNY Mellon engages in subleasing activities and reports the rental income as part of net occupancy expense, as this activity is not a significant business activity and is part of the Company’s customary business practice. BNY Mellon engages in leverage lease transactions that were entered into prior to Dec. 31, 2018. These leases are grandfathered under the new standard and will continue to be accounted for under the prior guidance unless subsequently modified. Leases We have operating and finance leases for corporate offices, data centers and certain equipment. Our leases have remaining lease terms of one year to 20 years , some of which include options to extend or terminate the lease. In some of our corporate office locations, we may enter into sublease arrangements for portions or all of the space and/or lease term. The following table presents the consolidated balance sheet information related to operating and finance leases. Balance sheet information June 30, 2019 (dollar in millions) Operating Finance Total Right-of-use assets (a) $ 1,160 $ 21 $ 1,181 Lease liability (b) $ 1,358 $ 10 $ 1,368 Weighted average: Remaining lease term 8.3 years 3.3 years Discount rate (annualized) 3.17 % 2.78 % (a) Included in premises and equipment on the consolidated balance sheet. (b) Operating lease liabilities are included in other liabilities and finance lease liabilities are included in other borrowed funds, both on the consolidated balance sheet. The following table presents the components of lease expense. Lease expense Quarter ended Year-to-date (in millions) June 30, 2019 June 30, 2019 Operating lease expense $ 63 $ 132 Variable lease expense 10 19 Sublease income (8 ) (16 ) Finance lease expense: Amortization of right-of-use assets 2 4 Interest on lease liabilities — — Total finance lease expense $ 2 $ 4 Total lease expense $ 67 $ 139 The following table presents cash flow information related to leases. Cash flow information Six months ended (in millions) June 30, 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows from finance leases $ — Operating cash flows from operating leases $ 134 Financing cash flows from finance leases $ 12 See Note 21 for information on non-cash operating and/or finance lease transactions. The following table presents the maturity of lease liabilities on operating leases prior to adopting ASU 2016-02, Leases . Maturities of lease liabilities Operating (in millions) For the year ended Dec. 31, 2019 $ 264 2020 244 2021 211 2022 172 2023 136 2024 and thereafter 432 Total $ 1,459 The following table presents the maturities of lease liabilities after adopting ASU 2016-02, Leases . Maturities of lease liabilities Operating Finance (in millions) For the year ended Dec. 31, 2019 (excluding six months ended June 30, 2019) $ 148 $ 9 2020 271 1 2021 215 — 2022 175 — 2023 137 — 2024 and thereafter 600 — Total lease payments 1,546 10 Less: Imputed interest (188 ) — Total $ 1,358 $ 10 |
Leasing | Leasing Significant accounting policy We determine if an arrangement is a lease at inception. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments. The ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. We use our incremental borrowing rate based on the information available at commencement date of the lease in determining the present value of lease payments. In addition to the lease payments, the determination of an ROU asset may also include certain adjustments related to lease incentives and initial direct costs incurred. Options to extend or terminate a lease are included in the determination of the ROU asset and lease liability only when it is reasonably certain that we will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term, while the lease expense for finance leases is recognized using the effective interest method. ROU assets are reviewed for impairment when events or circumstances indicate that the carrying amount may not be recoverable. For operating leases, if deemed impaired, the ROU asset is written down and the remaining balance is subsequently amortized on a straight-line basis which results in lease expense recognition that is similar to finance leases. We have elected to account for the lease and non-lease components as a single lease component and exclude the non-lease variable components. Additionally, for certain equipment leases, we apply a portfolio approach to account for the operating lease ROU assets and liabilities. BNY Mellon engages in subleasing activities and reports the rental income as part of net occupancy expense, as this activity is not a significant business activity and is part of the Company’s customary business practice. BNY Mellon engages in leverage lease transactions that were entered into prior to Dec. 31, 2018. These leases are grandfathered under the new standard and will continue to be accounted for under the prior guidance unless subsequently modified. Leases We have operating and finance leases for corporate offices, data centers and certain equipment. Our leases have remaining lease terms of one year to 20 years , some of which include options to extend or terminate the lease. In some of our corporate office locations, we may enter into sublease arrangements for portions or all of the space and/or lease term. The following table presents the consolidated balance sheet information related to operating and finance leases. Balance sheet information June 30, 2019 (dollar in millions) Operating Finance Total Right-of-use assets (a) $ 1,160 $ 21 $ 1,181 Lease liability (b) $ 1,358 $ 10 $ 1,368 Weighted average: Remaining lease term 8.3 years 3.3 years Discount rate (annualized) 3.17 % 2.78 % (a) Included in premises and equipment on the consolidated balance sheet. (b) Operating lease liabilities are included in other liabilities and finance lease liabilities are included in other borrowed funds, both on the consolidated balance sheet. The following table presents the components of lease expense. Lease expense Quarter ended Year-to-date (in millions) June 30, 2019 June 30, 2019 Operating lease expense $ 63 $ 132 Variable lease expense 10 19 Sublease income (8 ) (16 ) Finance lease expense: Amortization of right-of-use assets 2 4 Interest on lease liabilities — — Total finance lease expense $ 2 $ 4 Total lease expense $ 67 $ 139 The following table presents cash flow information related to leases. Cash flow information Six months ended (in millions) June 30, 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows from finance leases $ — Operating cash flows from operating leases $ 134 Financing cash flows from finance leases $ 12 See Note 21 for information on non-cash operating and/or finance lease transactions. The following table presents the maturity of lease liabilities on operating leases prior to adopting ASU 2016-02, Leases . Maturities of lease liabilities Operating (in millions) For the year ended Dec. 31, 2019 $ 264 2020 244 2021 211 2022 172 2023 136 2024 and thereafter 432 Total $ 1,459 The following table presents the maturities of lease liabilities after adopting ASU 2016-02, Leases . Maturities of lease liabilities Operating Finance (in millions) For the year ended Dec. 31, 2019 (excluding six months ended June 30, 2019) $ 148 $ 9 2020 271 1 2021 215 — 2022 175 — 2023 137 — 2024 and thereafter 600 — Total lease payments 1,546 10 Less: Imputed interest (188 ) — Total $ 1,358 $ 10 |
Goodwill and intangible assets
Goodwill and intangible assets | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 $ 8,333 $ 8,970 $ 47 $ 17,350 Foreign currency translation (6 ) (7 ) — (13 ) Balance at June 30, 2019 $ 8,327 $ 8,963 $ 47 $ 17,337 Goodwill by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2017 $ 8,389 $ 9,128 $ 47 $ 17,564 Dispositions — (65 ) — (65 ) Foreign currency translation (31 ) (50 ) — (81 ) Balance at June 30, 2018 $ 8,358 $ 9,013 $ 47 $ 17,418 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, 2018 $ 758 $ 1,613 $ 849 $ 3,220 Amortization (41 ) (18 ) — (59 ) Foreign currency translation — (1 ) — (1 ) Balance at June 30, 2019 $ 717 $ 1,594 $ 849 $ 3,160 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 (72 ) (25 ) — (97 ) Foreign currency translation (1 ) (5 ) — (6 ) Balance at June 30, 2018 $ 815 $ 1,644 $ 849 $ 3,308 The table below provides a breakdown of intangible assets by type. Intangible assets June 30, 2019 Dec. 31, 2018 (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 $ 1,573 $ (1,227 ) $ 346 10 years $ 1,572 $ (1,186 ) $ 386 Customer relationships—Investment Management 898 (714 ) 184 11 years 899 (699 ) 200 Other 65 (14 ) 51 14 years 26 (12 ) 14 Total subject to amortization 2,536 (1,955 ) 581 11 years 2,497 (1,897 ) 600 Not subject to amortization: (b) Tradenames 1,292 N/A 1,292 N/A 1,332 N/A 1,332 Customer relationships 1,287 N/A 1,287 N/A 1,288 N/A 1,288 Total not subject to amortization 2,579 N/A 2,579 N/A 2,620 N/A 2,620 Total intangible assets $ 5,115 $ (1,955 ) $ 3,160 N/A $ 5,117 $ (1,897 ) $ 3,220 (a) Excludes fully amortized intangible assets. (b) Intangible assets not subject to amortization have an indefinite life. N/A - Not applicable. Estimated annual amortization expense for current intangibles for the next five years is as follows: For the year ended Estimated amortization expense (in millions) 2019 $ 117 2020 104 2021 81 2022 63 2023 52 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. BNY Mellon’s three business segments include seven reporting units for which goodwill impairment testing is performed on an annual basis. The Investment Services segment is comprised of four reporting units; the Investment Management segment is comprised of two reporting units and one reporting unit is included in the Other segment. As a result of the annual goodwill impairment test of the seven reporting units conducted in the second quarter of 2019 , no |
Other assets
Other assets | 6 Months Ended |
Jun. 30, 2019 | |
Other Assets [Abstract] | |
Other assets | Other assets The following table provides the components of other assets presented on the consolidated balance sheet. Other assets June 30, 2019 Dec. 31, 2018 (in millions) Corporate/bank-owned life insurance $ 4,970 $ 4,937 Accounts receivable 4,322 3,692 Fails to deliver 4,057 2,274 Software 1,710 1,652 Prepaid pension assets 1,444 1,357 Renewable energy investments 1,201 1,264 Equity in a joint venture and other investments 1,156 1,064 Qualified affordable housing project investments 1,068 999 Income taxes receivable 743 1,125 Prepaid expense 539 385 Federal Reserve Bank stock 463 484 Seed capital 217 224 Fair value of hedging derivatives 156 289 Other (a) 1,691 1,552 Total other assets $ 23,737 $ 21,298 (a) At June 30, 2019 and Dec. 31, 2018 , other assets include $73 million and $111 million , respectively, of Federal Home Loan Bank stock, at cost. Non-readily marketable equity securities Non-readily marketable equity securities do not have readily determinable fair values. These investments are valued using a measurement alternative where the investments are carried at cost, less any impairment, and plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The observable price changes are recorded in investment and other income on the consolidated income statement. Our non-readily marketable equity securities totaled $61 million at June 30, 2019 and $55 million at Dec. 31, 2018 and are included in equity in a joint venture and other investments in the table above. The following table presents the adjustments on the non-readily marketable equity securities. Non-readily marketable equity securities Life-to-date (in millions) 2Q19 1Q19 2Q18 YTD19 YTD18 Upward adjustments $ 2 $ — $ 5 $ 2 $ 25 $ 30 Downward adjustments (1 ) — — (1 ) — (2 ) Net adjustments $ 1 $ — $ 5 $ 1 $ 25 $ 28 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 $1.1 billion at June 30, 2019 and $1.0 billion at Dec. 31, 2018 . Commitments to fund future investments in qualified affordable housing projects totaled $500 million at June 30, 2019 and $479 million at Dec. 31, 2018 and are recorded in other liabilities. A summary of the commitments to fund future investments is as follows: 2019 – $98 million ; 2020 – $144 million ; 2021 – $152 million ; 2022 – $82 million ; 2023 – $6 million ; and 2024 and thereafter – $18 million . Tax credits and other tax benefits recognized were $39 million in the second quarter of 2019 , $42 million in the second quarter of 2018 , $39 million in the first quarter of 2019 , $78 million in the first six months of 2019 and $82 million in the first six months of 2018 . Amortization expense included in the provision for income taxes was $32 million in the second quarter of 2019 , $35 million in the second quarter of 2018 , $32 million in the first quarter of 2019 , $64 million in the first six months of 2019 and $68 million in the first six months of 2018 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 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 certain 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. Investments valued using NAV June 30, 2019 Dec. 31, 2018 (dollars in millions) Fair value Unfunded commitments Redemption frequency Redemption notice period Fair value Unfunded commitments Redemption frequency Redemption notice period Seed capital $ 60 $ — Daily-quarterly 1-90 days $ 54 $ — Daily-quarterly 1-90 days Private equity investments (SBICs) (a) 81 54 N/A N/A 74 41 N/A N/A Other ( b) 37 — Daily-quarterly 1-95 days 87 — Daily-quarterly 1-95 days Total $ 178 $ 54 $ 215 $ 41 (a) Private equity investments 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 | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract revenue | Contract revenue 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. See Note 9 of the Notes to Consolidated Financial Statements in our 2018 Annual Report for information on the nature of our services and revenue recognition. See Note 23 of the Notes to Consolidated Financial Statement in our 2018 Annual Report for additional information on our 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 tables present fee revenue related to contracts with customers, disaggregated by type of fee revenue, for each business segment. Disaggregation of contract revenue by business segment (a) Quarter ended June 30, 2019 March 31, 2019 June 30, 2018 (in millions) IS IM Other Total IS IM Other Total IS IM Other Total Fee revenue - contract revenue: Investment services fees: Asset servicing fees $ 1,089 $ 20 $ — $ 1,109 $ 1,073 $ 20 $ — $ 1,093 $ 1,098 $ 21 $ 1 $ 1,120 Clearing services fees (b) 411 — (1 ) 410 398 — — 398 401 — — 401 Issuer services fees 291 — — 291 251 — — 251 265 — — 265 Treasury services fees 140 1 — 141 132 — — 132 140 1 — 141 Total investment services fees (b) 1,931 21 (1 ) 1,951 1,854 20 — 1,874 1,904 22 1 1,927 Investment management and performance fees (b) 4 829 — 833 4 837 — 841 5 893 — 898 Financing-related fees 16 — 1 17 17 — — 17 15 — — 15 Distribution and servicing (13 ) 44 — 31 (14 ) 45 — 31 (14 ) 48 — 34 Investment and other income 69 (48 ) — 21 69 (49 ) — 20 69 (50 ) 1 20 Total fee revenue - contract revenue 2,007 846 — 2,853 1,930 853 — 2,783 1,979 913 2 2,894 Fee and other revenue - not in scope of ASC 606 (c)(d) 220 4 41 265 224 11 30 265 254 28 39 321 Total fee and other revenue $ 2,227 $ 850 $ 41 $ 3,118 $ 2,154 $ 864 $ 30 $ 3,048 $ 2,233 $ 941 $ 41 $ 3,215 (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) In the first quarter of 2019, we reclassified certain platform-related fees to clearing services fees from investment management and performance fees. Prior periods have been reclassified. (c) Primarily includes foreign exchange and other trading revenue, financing-related fees, asset servicing fees, investment and other income and net securities gains (losses), all of which are accounted for using other accounting guidance. (d) The Investment Management business includes income from consolidated investment management funds, net of noncontrolling interests, of $6 million in the second quarter of 2019 , $16 million in the first quarter of 2019 and $5 million in the second quarter of 2018 . IS - Investment Services segment. IM - Investment Management segment. Disaggregation of contract revenue by business segment (a) Year-to-date June 30, 2019 June 30, 2018 (in millions) IS IM Other Total IS IM Other Total Fee revenue - contract revenue: Investment services fees: Asset servicing fees $ 2,162 $ 40 $ — $ 2,202 $ 2,215 $ 46 $ 1 $ 2,262 Clearing services fees (b) 809 — (1 ) 808 824 — 1 825 Issuer services fees 542 — — 542 525 — — 525 Treasury services fees 272 1 — 273 278 1 — 279 Total investment services fees (b) 3,785 41 (1 ) 3,825 3,842 47 2 3,891 Investment management and performance fees (b) 8 1,666 — 1,674 9 1,835 — 1,844 Financing-related fees 33 — 1 34 32 — — 32 Distribution and servicing (27 ) 89 — 62 (28 ) 98 — 70 Investment and other income 138 (97 ) — 41 138 (101 ) 1 38 Total fee revenue - contract revenue 3,937 1,699 — 5,636 3,993 1,879 3 5,875 Fee and other revenue - not in scope of ASC 606 (c)(d) 444 15 71 530 490 74 46 610 Total fee and other revenue $ 4,381 $ 1,714 $ 71 $ 6,166 $ 4,483 $ 1,953 $ 49 $ 6,485 (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) In the first quarter of 2019, we reclassified certain platform-related fees to clearing services fees from investment management and performance fees. Prior periods have been reclassified. (c) Primarily includes foreign exchange and other trading revenue, financing-related fees, asset servicing fees, investment and other income and net securities gains (losses), all of which are accounted for using other accounting guidance. (d) The Investment Management business includes income from consolidated investment management funds, net of noncontrolling interests, of $22 million in the first six months of 2019 and $5 million in the first six months of 2018 . IS - Investment Services segment. IM - Investment Management segment. Contract balances Our clients are billed based on fee schedules that are agreed upon in each customer contract. Receivables from customers were $2.4 billion at June 30, 2019 and $2.5 billion at Dec. 31, 2018 . An allowance is maintained for accounts receivable which is generally based on the number of days outstanding. Adjustments to the allowance are recorded in other expense on the consolidated income statement. We recorded a provision of $2 million in the second quarter of 2019 , $4 million in the second quarter of 2018 , $4 million in the first quarter of 2019 , $6 million in the first six months of 2019 and $6 million in the first six months 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 $74 million at June 30, 2019 and $36 million at Dec. 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 second quarter of 2019 or first six months of 2019 . 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 $198 million at June 30, 2019 and $171 million at Dec. 31, 2018 . Contract liabilities are included in other liabilities on the consolidated balance sheet. Revenue recognized in the second quarter of 2019 relating to contract liabilities as of March 31, 2019 was $59 million . Revenue recognized in the first six months of 2019 relating to contract liabilities as of Dec. 31, 2018 was $75 million . Changes in contract assets and liabilities primarily relate to either party’s performance under the contracts. Contract costs Incremental costs for obtaining contracts 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 $99 million at June 30, 2019 and $98 million at Dec. 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 on the consolidated income statement, totaled $5 million in the second quarter of 2019 , $6 million in the second quarter of 2018 , $5 million in the first quarter of 2019 , $10 million in the first six months of 2019 and $11 million in the first six months of 2018 . Costs to fulfill a contract are capitalized when they relate directly to an existing contract or a 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 the inception of a contract which enables the fulfillment of the performance obligation and totaled $18 million at June 30, 2019 and $20 million at Dec. 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 on the consolidated income statement and totaled $2 million in the second quarter of 2019 , $2 million in the second quarter of 2018 , $1 million in the first quarter of 2019 , $3 million in the first six months of 2019 and $3 million in the first six months of 2018 . There were no impairments recorded on capitalized contract costs in the second quarter of 2019 or first six months of 2019 . Unsatisfied performance obligations We do not have any unsatisfied performance obligations other than those that are subject to a practical expedient election under Accounting Standards Codification (“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 | 6 Months Ended |
Jun. 30, 2019 | |
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 Year-to-date (in millions) June 30, 2019 March 31, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Interest revenue Deposits with the Federal Reserve and other central banks $ 113 $ 139 $ 136 $ 252 $ 262 Deposits with banks 64 63 56 127 98 Federal funds sold and securities purchased under resale agreements 568 474 230 1,042 400 Margin loans 119 135 128 254 243 Non-margin loans 365 355 345 720 650 Securities: Taxable 687 706 615 1,393 1,196 Exempt from federal income taxes 10 12 14 22 29 Total securities 697 718 629 1,415 1,225 Trading securities 39 36 29 75 56 Total interest revenue 1,965 1,920 1,553 3,885 2,934 Interest expense Deposits 432 391 173 823 290 Federal funds purchased and securities sold under repurchase agreements 372 331 158 703 265 Trading liabilities 11 7 7 18 16 Other borrowed funds 20 24 14 44 23 Commercial paper 18 8 21 26 33 Customer payables 69 70 45 139 76 Long-term debt 241 248 219 489 396 Total interest expense 1,163 1,079 637 2,242 1,099 Net interest revenue 802 841 916 1,643 1,835 Provision for credit losses (8 ) 7 (3 ) (1 ) (8 ) Net interest revenue after provision for credit losses $ 810 $ 834 $ 919 $ 1,644 $ 1,843 |
Employee benefit plans
Employee benefit plans | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 March 31, 2019 June 30, 2018 (in millions) Domestic pension benefits Foreign pension benefits Health care benefits Domestic pension benefits Foreign pension benefits Health care benefits Domestic pension benefits Foreign pension benefits Health care benefits Service cost $ — $ 3 $ — $ — $ 3 $ — $ — $ 7 $ — Interest cost 45 8 1 44 8 2 42 8 2 Expected return on assets (84 ) (12 ) (2 ) (84 ) (11 ) (2 ) (85 ) (14 ) (2 ) Other 13 1 — 13 — (1 ) 17 6 — Net periodic benefit (credit) cost $ (26 ) $ — $ (1 ) $ (27 ) $ — $ (1 ) $ (26 ) $ 7 $ — Net periodic benefit (credit) cost Year-to-date June 30, 2019 June 30, 2018 (in millions) Domestic pension benefits Foreign pension benefits Health care benefits Domestic pension benefits Foreign pension benefits Health care benefits Service cost $ — $ 6 $ — $ — $ 14 $ — Interest cost 89 16 3 85 16 4 Expected return on assets (168 ) (23 ) (4 ) (170 ) (29 ) (4 ) Other 26 1 (1 ) 34 12 (1 ) Net periodic benefit (credit) cost $ (53 ) $ — $ (2 ) $ (51 ) $ 13 $ (1 ) |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes BNY Mellon recorded an income tax provision of $264 million ( 20.5% effective tax rate) in the second quarter of 2019 , $286 million ( 20.5% effective tax rate) in the second quarter of 2018 and $237 million ( 19.9% effective tax rate) in the first quarter of 2019 . Our total tax reserves as of June 30, 2019 were $135 million compared with $105 million at March 31, 2019 . If these tax reserves were unnecessary, $135 million would affect the effective tax rate in future periods. We recognize accrued interest and penalties, if applicable, related to income taxes in the provision for income taxes on the consolidated income statement. Included in the balance sheet at June 30, 2019 is accrued interest, where applicable, of $24 million . The additional tax expense related to interest for the six months ended June 30, 2019 was $6 million , compared with $2 million for the six months ended June 30, 2018 . It is reasonably possible the total reserve for uncertain tax positions could decrease within the next 12 months by approximately $56 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 | 6 Months Ended |
Jun. 30, 2019 | |
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 collateralized loan obligation (“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 following table presents the incremental assets and liabilities included in BNY Mellon’s consolidated balance sheet as of June 30, 2019 and Dec. 31, 2018 . 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 June 30, 2019 Dec. 31, 2018 (in millions) Investment Management funds Securitization Total consolidated investments Investment Management funds Securitization Total consolidated investments Trading assets $ 314 $ 400 $ 714 $ 243 $ 400 $ 643 Other assets 23 — 23 220 — 220 Total assets $ 337 (a) $ 400 $ 737 $ 463 (b) $ 400 $ 863 Other liabilities $ 6 $ 383 $ 389 $ 2 $ 371 $ 373 Total liabilities $ 6 (a) $ 383 $ 389 $ 2 (b) $ 371 $ 373 Nonredeemable noncontrolling interests $ 166 (a) $ — $ 166 $ 101 (b) $ — $ 101 (a) Includes voting model entities (“VMEs”) with assets of $74 million , liabilities of $4 million and nonredeemable noncontrolling interests of less than $1 million . (b) Includes VMEs with assets of $253 million , liabilities of $2 million and nonredeemable noncontrolling interests of less than $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 June 30, 2019 and Dec. 31, 2018 , the following assets and liabilities related to the VIEs where BNY Mellon is not the primary beneficiary are included in our consolidated balance sheets 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 June 30, 2019 Dec. 31, 2018 (in millions) Assets Liabilities Maximum loss exposure Assets Liabilities Maximum loss exposure Securities - Available-for-sale (a) $ 214 $ — $ 214 $ 214 $ — $ 214 Other 2,496 500 2,996 2,450 479 2,929 (a) Includes investments in the Company’s sponsored CLOs. |
Preferred stock
Preferred stock | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
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 June 30, 2019 and Dec. 31, 2018 . Preferred stock summary (a) Total shares issued and outstanding Carrying value (b) (in millions) June 30, 2019 Dec. 31, 2018 June 30, 2019 Dec. 31, 2018 Per annum dividend rate 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. The table below presents the dividends paid on our preferred stock. Preferred dividends paid (dollars in millions, except per share amounts) Depositary shares per share 2Q19 1Q19 2Q18 YTD19 YTD18 Per share Total Per share Total Per share Total Per share Total Per share Total Series A 100 (a) $ 1,022.22 $ 5 $ 1,000.00 $ 5 $ 1,022.22 $ 5 $ 2,022.22 $ 10 $ 2,022.22 $ 10 Series C 4,000 1,300.00 7 1,300.00 8 1,300.00 7 2,600.00 15 2,600.00 15 Series D 100 2,250.00 11 N/A — 2,250.00 11 2,250.00 11 2,250.00 11 Series E 100 2,475.00 25 N/A — 2,475.00 25 2,475.00 25 2,475.00 25 Series F 100 N/A — 2,312.50 23 N/A — 2,312.50 23 2,312.50 23 Total $ 48 $ 36 $ 48 $ 84 $ 84 (a) Represents Normal Preferred Capital Securities. N/A - Not applicable. For additional information on the preferred stock, see Note 14 of the Notes to Consolidated Financial Statements in our 2018 Annual Report. |
Other comprehensive income (los
Other comprehensive income (loss) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Other comprehensive income (loss) | Other comprehensive income (loss) Components of other comprehensive income (loss) Quarter ended June 30, 2019 March 31, 2019 June 30, 2018 (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) $ 29 $ (19 ) $ 10 $ 27 $ 2 $ 29 $ (302 ) $ (98 ) $ (400 ) Total foreign currency translation 29 (19 ) 10 27 2 29 (302 ) (98 ) (400 ) Unrealized gain (loss) on assets available-for-sale: Unrealized gain (loss) arising during period 384 (97 ) 287 322 (83 ) 239 (103 ) 39 (64 ) Reclassification adjustment (b) (7 ) 2 (5 ) (1 ) — (1 ) (1 ) 1 — Net unrealized gain (loss) on assets available-for-sale 377 (95 ) 282 321 (83 ) 238 (104 ) 40 (64 ) Defined benefit plans: Net (loss) gain arising during the period — — — (11 ) 2 (9 ) — — — Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost (b) 12 (2 ) 10 13 (3 ) 10 22 (6 ) 16 Total defined benefit plans 12 (2 ) 10 2 (1 ) 1 22 (6 ) 16 Unrealized gain (loss) on cash flow hedges: Unrealized hedge gain (loss) arising during period 2 (2 ) — 6 (4 ) 2 (17 ) 3 (14 ) Reclassification of net loss (gain) to net income: FX contracts - other revenue — — — — — — 1 — 1 FX contracts - staff expense — — — 1 2 3 (2 ) 1 (1 ) Total reclassifications to net income (b) — — — 1 2 3 (1 ) 1 — Net unrealized gain (loss) on cash flow hedges 2 (2 ) — 7 (2 ) 5 (18 ) 4 (14 ) Total other comprehensive income (loss) $ 420 $ (118 ) $ 302 $ 357 $ (84 ) $ 273 $ (402 ) $ (60 ) $ (462 ) (a) Includes the impact of hedges of net investments in foreign subsidiaries. See Note 18 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 18 for the location of the reclassification adjustment related to cash flow hedges on the consolidated income statement. Components of other comprehensive income (loss) Year-to-date June 30, 2019 June 30, 2018 (in millions) 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) $ 56 $ (17 ) $ 39 $ (101 ) $ (55 ) $ (156 ) Total foreign currency translation 56 (17 ) 39 (101 ) (55 ) (156 ) Unrealized gain (loss) on assets available-for-sale: Unrealized gain (loss) arising during period 706 (180 ) 526 (445 ) 106 (339 ) Reclassification adjustment (b) (8 ) 2 (6 ) 48 (11 ) 37 Net unrealized gain (loss) on assets available-for-sale 698 (178 ) 520 (397 ) 95 (302 ) Defined benefit plans: Net gain (loss) arising during the period (11 ) 2 (9 ) — — — Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost (b) 25 (5 ) 20 44 (11 ) 33 Total defined benefit plans 14 (3 ) 11 44 (11 ) 33 Unrealized gain (loss) on cash flow hedges: Unrealized hedge gain (loss) arising during period 8 (6 ) 2 (10 ) 2 (8 ) Reclassification of net loss (gain) to net income: FX contracts - other revenue — — — (3 ) 1 (2 ) FX contracts - staff expense 1 2 3 (8 ) 2 (6 ) Total reclassifications to net income (b) 1 2 3 (11 ) 3 (8 ) Net unrealized gain (loss) on cash flow hedges 9 (4 ) 5 (21 ) 5 (16 ) Total other comprehensive income (loss) $ 777 $ (202 ) $ 575 $ (475 ) $ 34 $ (441 ) (a) Includes the impact of hedges of net investments in foreign subsidiaries. See Note 18 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 18 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 | 6 Months Ended |
Jun. 30, 2019 | |
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 19 of the Notes to Consolidated Financial Statements in our 2018 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 June 30, 2019 and Dec. 31, 2018 , 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. Assets measured at fair value on a recurring basis at June 30, 2019 Total carrying (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Available-for-sale securities: Agency RMBS $ — $ 26,204 $ — $ — $ 26,204 U.S. Treasury 14,197 — — — 14,197 Sovereign debt/sovereign guaranteed 7,818 4,524 — — 12,342 Agency commercial MBS — 9,678 — — 9,678 Supranational — 3,914 — — 3,914 CLOs — 3,649 — — 3,649 Foreign covered bonds — 3,398 — — 3,398 U.S. government agencies — 2,650 — — 2,650 Other ABS — 2,470 — — 2,470 Non-agency commercial MBS — 2,005 — — 2,005 State and political subdivisions — 1,280 — — 1,280 Non-agency RMBS (b) — 1,221 — — 1,221 Corporate bonds — 905 — — 905 Other debt securities — 1,680 — — 1,680 Total available-for-sale securities 22,015 63,578 — — 85,593 Trading assets: Debt instruments 1,529 2,260 — — 3,789 Equity instruments (c) 2,011 — — — 2,011 Derivative assets not designated as hedging: Interest rate 14 4,254 — (2,347 ) 1,921 Foreign exchange — 4,083 — (3,213 ) 870 Equity and other contracts — 46 — (8 ) 38 Total derivative assets not designated as hedging 14 8,383 — (5,568 ) 2,829 Total trading assets 3,554 10,643 — (5,568 ) 8,629 Other assets: Derivative assets designated as hedging: Foreign exchange — 156 — — 156 Total derivative assets designated as hedging — 156 — — 156 Other assets (d) 94 163 — — 257 Assets measured at NAV (d) 178 Subtotal assets of operations at fair value 25,663 74,540 — (5,568 ) 94,813 Percentage of assets of operations prior to netting 26 % 74 % — % Assets of consolidated investment management funds 305 32 — — 337 Total assets $ 25,968 $ 74,572 $ — $ (5,568 ) $ 95,150 Percentage of total assets prior to netting 26 % 74 % — % Liabilities measured at fair value on a recurring basis at June 30, 2019 Total carrying (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Trading liabilities: Debt instruments $ 1,173 $ 212 $ — $ — $ 1,385 Equity instruments 96 — — — 96 Derivative liabilities not designated as hedging: Interest rate 25 3,600 — (2,637 ) 988 Foreign exchange — 3,952 — (2,660 ) 1,292 Equity and other contracts 3 4 — — 7 Total derivative liabilities not designated as hedging 28 7,556 — (5,297 ) 2,287 Total trading liabilities 1,297 7,768 — (5,297 ) 3,768 Long-term debt (c) — 383 — — 383 Other liabilities – derivative liabilities designated as hedging: Interest rate — 311 — — 311 Foreign exchange — 24 — — 24 Total other liabilities – derivative liabilities designated as hedging — 335 — — 335 Subtotal liabilities of operations at fair value 1,297 8,486 — (5,297 ) 4,486 Percentage of liabilities of operations prior to netting 13 % 87 % — % Liabilities of consolidated investment management funds 1 5 — — 6 Total liabilities $ 1,298 $ 8,491 $ — $ (5,297 ) $ 4,492 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 $753 million in Level 2 that was included in the former Grantor Trust. (c) Includes certain interests in securitizations. (d) Includes seed capital, private equity investments and other assets. Assets measured at fair value on a recurring basis at Dec. 31, 2018 Total carrying value (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Available-for-sale securities: Agency RMBS $ — $ 25,308 $ — $ — $ 25,308 U.S. Treasury 20,076 — — — 20,076 Sovereign debt/sovereign guaranteed 6,613 4,137 — — 10,750 Agency commercial MBS — 9,691 — — 9,691 CLOs — 3,364 — — 3,364 Supranational — 2,984 — — 2,984 Foreign covered bonds — 2,878 — — 2,878 State and political subdivisions — 2,247 — — 2,247 Other ABS — 1,773 — — 1,773 U.S. government agencies — 1,657 — — 1,657 Non-agency commercial MBS — 1,464 — — 1,464 Non-agency RMBS (b) — 1,325 — — 1,325 Corporate bonds — 1,054 — — 1,054 Other debt securities — 1,238 — — 1,238 Total available-for-sale securities 26,689 59,120 — — 85,809 Trading assets: Debt instruments 801 2,594 — — 3,395 Equity instruments (c) 1,114 — — — 1,114 Derivative assets not designated as hedging: Interest rate 7 3,583 — (2,202 ) 1,388 Foreign exchange — 4,807 — (3,724 ) 1,083 Equity and other contracts 9 59 — (13 ) 55 Total derivative assets not designated as hedging 16 8,449 — (5,939 ) 2,526 Total trading assets 1,931 11,043 — (5,939 ) 7,035 Other assets : Derivative assets designated as hedging: Interest rate — 23 — — 23 Foreign exchange — 266 — — 266 Total derivative assets designated as hedging — 289 — — 289 Other assets (d) 68 170 — — 238 Assets measured at NAV (d) 215 Subtotal assets of operations at fair value 28,688 70,622 — (5,939 ) 93,586 Percentage of assets of operations prior to netting 29 % 71 % — % Assets of consolidated investment management funds 210 253 — — 463 Total assets $ 28,898 $ 70,875 $ — $ (5,939 ) $ 94,049 Percentage of total assets prior to netting 29 % 71 % — % Liabilities measured at fair value on a recurring basis at Dec. 31, 2018 Total carrying value (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Trading liabilities: Debt instruments $ 1,006 $ 118 $ — $ — $ 1,124 Equity instruments 75 — — — 75 Derivative liabilities not designated as hedging: Interest rate 12 3,104 — (2,508 ) 608 Foreign exchange — 5,215 — (3,626 ) 1,589 Equity and other contracts 1 118 — (36 ) 83 Total derivative liabilities not designated as hedging 13 8,437 — (6,170 ) 2,280 Total trading liabilities 1,094 8,555 — (6,170 ) 3,479 Long-term debt ( c ) — 371 — — 371 Other liabilities – derivative liabilities designated as hedging: Interest rate — 74 — — 74 Foreign exchange — 14 — — 14 Total other liabilities – derivative liabilities designated as hedging — 88 — — 88 Subtotal liabilities of operations at fair value 1,094 9,014 — (6,170 ) 3,938 Percentage of liabilities of operations prior to netting 11 % 89 % — % Liabilities of consolidated investment management funds 2 — — — 2 Total liabilities $ 1,096 $ 9,014 $ — $ (6,170 ) $ 3,940 Percentage of total liabilities prior to netting 11 % 89 % — % (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 $832 million in Level 2 that was included in the former Grantor Trust. (c) Includes certain interests in securitizations. (d) Includes seed capital, private equity investments and other assets. Details of certain available-for-sale securities measured at fair value on a recurring basis June 30, 2019 Dec. 31, 2018 Total carrying value Ratings (a) Total carrying value Ratings (a) AAA/ AA- A+/ A- BBB+/ BBB- BB+ and lower AAA/ AA- A+/ A- BBB+/ BBB- BB+ and lower (dollars in millions) (b) (b) Non-agency RMBS (c) , originated in: 2007-2019 $ 311 23 % 2 % 3 % 72 % $ 315 15 % 2 % 3 % 80 % 2006 330 — 19 1 80 363 — 19 — 81 2005 356 8 1 8 83 396 9 1 7 83 2004 and earlier 224 16 23 11 50 251 16 24 11 49 Total non-agency RMBS $ 1,221 11 % 10 % 5 % 74 % $ 1,325 9 % 11 % 5 % 75 % Non-agency commercial MBS originated in 2009-2019 $ 2,005 98 % 2 % — % — % $ 1,464 96 % 4 % — % — % Foreign covered bonds: Canada $ 1,639 100 % — % — % — % $ 1,524 100 % — % — % — % United Kingdom 798 100 — — — 529 100 — — — Australia 414 100 — — — 333 100 — — — Sweden 274 100 — — — 187 100 — — — Other 273 100 — — — 305 100 — — — Total foreign covered bonds $ 3,398 100 % — % — % — % $ 2,878 100 % — % — % — % Sovereign debt/sovereign guaranteed: United Kingdom $ 3,133 100 % — % — % — % $ 2,153 100 % — % — % — % Germany 2,198 100 — — — 1,826 100 — — — France 1,424 100 — — — 1,548 100 — — — Spain 1,309 — 2 98 — 1,365 — — 100 — Italy 1,302 — — 100 — 939 — — 100 — Netherlands 811 100 — — — 875 100 — — — Hong Kong 504 100 — — — 450 100 — — — Canada 485 100 — — — 378 100 — — — Singapore 443 100 — — — 165 100 — — — Ireland 368 — 100 — — 625 — 100 — — Other (d) 365 68 1 — 31 426 75 — — 25 Total sovereign debt/sovereign guaranteed $ 12,342 75 % 3 % 21 % 1 % $ 10,750 72 % 6 % 21 % 1 % (a) Represents ratings by S&P or the equivalent. (b) At June 30, 2019 and Dec. 31, 2018 , 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 $753 million at June 30, 2019 and $832 million at Dec. 31, 2018 that were included in the former Grantor Trust. (d) Includes non-investment grade sovereign debt/sovereign guaranteed securities related to Brazil of $113 million at June 30, 2019 and $107 million at Dec. 31, 2018 . Assets and liabilities measured at fair value on a nonrecurring basis Under certain circumstances, we make adjustments to the fair value of 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 table presents the financial instruments carried on the consolidated balance sheet by caption and level in the fair value hierarchy as of June 30, 2019 and Dec. 31, 2018 , for which a nonrecurring change in fair value has been recorded in the respective year. Assets measured at fair value on a nonrecurring basis June 30, 2019 Dec. 31, 2018 Total carrying value Total carrying value (in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Loans (a) $ — $ 58 $ 4 $ 62 $ — $ 64 $ 4 $ 68 Other assets (b) — 63 — 63 — 57 — 57 Total assets at fair value on a nonrecurring basis $ — $ 121 $ 4 $ 125 $ — $ 121 $ 4 $ 125 (a) The fair value of these loans decreased less than $1 million in the quarters ended June 30, 2019 and Dec. 31, 2018 , based on the fair value of the underlying collateral, as required by guidance in ASC 310, Receivables, with an offset to the allowance for credit losses. (b) Includes non-readily marketable equity securities carried at cost with upward or downward adjustments and 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 June 30, 2019 and Dec. 31, 2018 , by caption on the consolidated balance sheet and by the valuation hierarchy. Summary of financial instruments June 30, 2019 (in millions) Level 1 Level 2 Level 3 Total Carrying Assets: Interest-bearing deposits with the Federal Reserve and other central banks $ — $ 69,700 $ — $ 69,700 $ 69,700 Interest-bearing deposits with banks — 15,515 — 15,515 15,491 Federal funds sold and securities purchased under resale agreements — 61,201 — 61,201 61,201 Securities held-to-maturity 5,344 29,351 — 34,695 34,549 Loans (a) — 51,425 — 51,425 51,025 Other financial assets 5,556 1,316 — 6,872 6,872 Total $ 10,900 $ 228,508 $ — $ 239,408 $ 238,838 Liabilities: Noninterest-bearing deposits $ — $ 58,255 $ — $ 58,255 $ 58,255 Interest-bearing deposits — 193,698 — 193,698 194,622 Federal funds purchased and securities sold under repurchase agreements — 11,757 — 11,757 11,757 Payables to customers and broker-dealers — 18,946 — 18,946 18,946 Commercial paper — 8,894 — 8,894 8,894 Borrowings — 2,283 — 2,283 2,283 Long-term debt — 28,365 — 28,365 27,820 Total $ — $ 322,198 $ — $ 322,198 $ 322,577 (a) Does not include the leasing portfolio. Summary of financial instruments Dec. 31, 2018 (in millions) Level 1 Level 2 Level 3 Total estimated Carrying Assets: Interest-bearing deposits with the Federal Reserve and other central banks $ — $ 67,988 $ — $ 67,988 $ 67,988 Interest-bearing deposits with banks — 14,168 — 14,168 14,148 Federal funds sold and securities purchased under resale agreements — 46,795 — 46,795 46,795 Securities held-to-maturity 5,512 27,790 — 33,302 33,982 Loans (a) — 55,142 — 55,142 55,161 Other financial assets 5,864 1,383 — 7,247 7,247 Total $ 11,376 $ 213,266 $ — $ 224,642 $ 225,321 Liabilities: Noninterest-bearing deposits $ — $ 70,783 $ — $ 70,783 $ 70,783 Interest-bearing deposits — 165,914 — 165,914 167,995 Federal funds purchased and securities sold under repurchase agreements — 14,243 — 14,243 14,243 Payables to customers and broker-dealers — 19,731 — 19,731 19,731 Commercial paper — 1,939 — 1,939 1,939 Borrowings — 3,584 — 3,584 3,584 Long-term debt — 28,347 — 28,347 28,792 Total $ — $ 304,541 $ — $ 304,541 $ 307,067 (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 (a) (in millions) Gain (Loss) June 30, 2019 Securities available-for-sale (b) $ 18,347 $ 18,283 $ — $ (311 ) Long-term debt 15,344 15,050 — — Dec. 31, 2018 Securities available-for-sale (b) $ 19,349 $ 19,437 $ 24 $ (74 ) Long-term debt 16,147 16,600 — — (a) Unrealized gain/loss amounts reflect the fact that certain of the derivatives are cleared and settled through central clearing counterparties where cash collateral received and paid is deemed a settlement of the derivative. (b) Includes foreign exchange fair value hedges with carrying values of $145 million and $148 million , notional amounts of $145 million and $147 million and an unrealized gain of less than $1 million and $1 million at June 30, 2019 and Dec. 31, 2018 , respectively. |
Fair value option
Fair value option | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 Dec. 31, 2018 (in millions) Assets of consolidated investment management funds: Trading assets $ 314 $ 243 Other assets 23 220 Total assets of consolidated investment management funds $ 337 $ 463 Liabilities of consolidated investment management funds: Other liabilities $ 6 $ 2 Total liabilities of consolidated investment management funds $ 6 $ 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 $383 million at June 30, 2019 and $371 million at Dec. 31, 2018 . 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 changes 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 (a) (in millions) 2Q19 1Q19 2Q18 YTD19 YTD18 Long-term debt $ (7 ) $ (5 ) $ — $ (12 ) $ 4 (a) The changes in fair value are approximately offset by an economic hedge included in foreign exchange and other trading revenue. |
Derivative instruments
Derivative instruments | 6 Months Ended |
Jun. 30, 2019 | |
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 second quarter of 2019 . 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 securities and long-term debt to LIBOR. We also utilize interest rate swaps and forward exchange contracts as cash flow hedges to manage our exposure to interest and foreign exchange rate changes. The available-for-sale securities hedged consist of U.S. Treasury bonds, agency and non-agency commercial MBS, sovereign debt, corporate bonds and covered bonds that had original maturities of 30 years or less at initial purchase. At June 30, 2019 , $18.1 billion face amount of available-for-sale securities were hedged with interest rate swaps designated as fair value hedges that had notional values of $18.1 billion . The fixed rate long-term debt instruments hedged generally have original maturities of five to 30 years. In fair value hedging relationships, debt is hedged with “receive fixed rate, pay variable rate” swaps. At June 30, 2019 , $14.1 billion par value of debt was hedged with interest rate swaps designated as fair value hedges that had notional values of $14.1 billion . In addition, at June 30, 2019 , the Company utilized interest rate swaps with notional values of $1.0 billion as cash flow hedges to convert floating rate long-term debt with a par value of $1.0 billion to a fixed interest rate. A pre-tax loss of $2 million was recognized in OCI related to the cash flow hedges at June 30, 2019 and will be reclassified to earnings over the next 12 months . 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 12 months or less as cash flow hedges to hedge our foreign exchange exposure to Indian rupee, British pound, Hong Kong dollar, Singapore dollar and Polish zloty revenue and expense transactions in entities that have the U.S. dollar as their functional currency. As of June 30, 2019 , the hedged forecasted foreign currency transactions and designated forward foreign exchange contract hedges were $272 million (notional), with a pre-tax gain of $8 million recorded in accumulated OCI. This gain will be reclassified to earnings over the next 12 months . We also utilize forward foreign exchange contracts as fair value hedges of the foreign exchange risk associated with available-for-sale securities. Forward points are designated as an excluded component and amortized into earnings over the hedge period. The unamortized derivative value associated with the excluded component is recognized in accumulated OCI. At June 30, 2019 , $145 million face amount of available-for-sale securities were hedged with foreign currency forward contracts that had a notional value of $145 million . 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 reported within foreign currency translation adjustments in shareholders’ equity, net of tax. At June 30, 2019 , forward foreign exchange contracts with notional amounts totaling $7.3 billion were designated as net investment 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 June 30, 2019 , had a combined U.S. dollar equivalent value of $174 million . The following table presents the gains (losses) related to our hedging derivative portfolio recognized in the consolidated income statement. Income statement impact of fair value and cash flow hedges (in millions) Location of gains (losses) 2Q19 1Q19 2Q18 YTD19 YTD18 Interest rate fair value hedges of available-for-sale securities Derivative Interest revenue $ (486 ) $ (383 ) $ 136 $ (869 ) $ 533 Hedged item Interest revenue 480 376 (133 ) 856 (516 ) Interest rate fair value hedges of long-term debt Derivative Interest expense 300 185 (131 ) 485 (509 ) Hedged item Interest expense (298 ) (184 ) 129 (482 ) 506 Foreign exchange fair value hedges of available-for-sale securities Derivative (a) Other revenue (5 ) 6 — 1 — Hedged item Other revenue 5 (5 ) — — — Cash flow hedges of forecasted FX exposures (Loss) gain reclassified from OCI into income Other revenue — — (1 ) — 3 (Loss) gain reclassified from OCI into income Staff expense — (1 ) 2 (1 ) 8 (Loss) gain recognized in the consolidated income statement due to fair value and cash flow hedging relationships (b) $ (4 ) $ (6 ) $ 2 $ (10 ) $ 25 (a) Includes a de minimis gain in the second quarter of 2019 and a gain of $1 million in the first quarter of 2019 and first six months of 2019 associated with the amortization of the excluded component. At June 30, 2019 and Dec. 31, 2018 , the remaining accumulated OCI balance associated with the excluded component was de minimis. (b) Includes a (loss) on cash flow hedges of long-term debt of less than $(1) million in the second quarter of 2019 , first quarter of 2019 and first six months of 2019 . The following table presents the impact of hedging derivatives used in net investment hedging relationships in the consolidated income statement. Impact of derivative instruments used in net investment hedging relationships in the income statement (in millions) Gain or (loss) recognized in accumulated OCI on derivatives Gain or (loss) reclassified from accumulated OCI into income Derivatives in net investment hedging relationships Location of gain or (loss) reclassified from accumulated OCI into income 2Q19 1Q19 2Q18 YTD19 YTD18 2Q19 1Q19 2Q18 YTD19 YTD18 FX contracts $ 76 $ (6 ) $ 429 $ 70 $ 271 Net interest revenue $ — $ — $ — $ — $ — The following table presents information on the hedged items in fair value hedging relationships. Hedged items in fair value hedging relationships Carrying amount of hedged asset or liability Hedge accounting basis adjustment increase (decrease) (a) (in millions) June 30, 2019 Dec. 31, 2018 June 30, 2019 Dec. 31, 2018 Available-for-sale securities (b) $ 18,202 $ 19,201 $ 692 $ (125 ) Long-term debt $ 14,344 $ 16,147 $ 72 $ (453 ) (a) Includes $38 million and $- million of basis adjustment decreases on discontinued hedges associated with available-for-sale securities at June 30, 2019 and Dec. 31, 2018 , respectively, and $242 million and $284 million of basis adjustment decreases on discontinued hedges associated with long-term debt at June 30, 2019 and Dec. 31, 2018 , respectively. (b) Excludes hedged items where only foreign currency risk is the designated hedged risk, as the basis adjustments related to foreign currency hedges will not reverse through the consolidated income statement in future periods. The carrying amount excluded for available-for-sale securities was $145 million at June 30, 2019 and $148 million at Dec. 31, 2018 . The following table summarizes the notional amount and credit exposure of our total derivative portfolio at June 30, 2019 and Dec. 31, 2018 . Impact of derivative instruments on the balance sheet Notional value Asset derivatives fair value Liability derivatives fair value June 30, 2019 Dec. 31, 2018 June 30, 2019 Dec. 31, 2018 June 30, 2019 Dec. 31, 2018 (in millions) Derivatives designated as hedging instruments: (a)(b) Interest rate contracts $ 33,188 $ 35,890 $ — $ 23 $ 311 $ 74 Foreign exchange contracts 7,693 6,330 156 266 24 14 Total derivatives designated as hedging instruments $ 156 $ 289 $ 335 $ 88 Derivatives not designated as hedging instruments: (b)(c) Interest rate contracts $ 302,029 $ 248,534 $ 4,268 $ 3,590 $ 3,625 $ 3,116 Foreign exchange contracts 850,236 831,730 4,083 4,807 3,952 5,215 Equity contracts 1,573 927 46 68 4 118 Credit contracts 165 150 — — 3 1 Total derivatives not designated as hedging instruments $ 8,397 $ 8,465 $ 7,584 $ 8,450 Total derivatives fair value (d) $ 8,553 $ 8,754 $ 7,919 $ 8,538 Effect of master netting agreements (e) (5,568 ) (5,939 ) (5,297 ) (6,170 ) Fair value after effect of master netting agreements $ 2,985 $ 2,815 $ 2,622 $ 2,368 (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 consolidated balance sheet. (b) For derivative transactions settled at clearing organizations, cash collateral exchanged is deemed a settlement of the derivative each day. The settlement reduces the gross fair value of derivative assets and liabilities and a corresponding decrease in the effect of master netting agreements, with no impact to the consolidated balance sheet. (c) 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 consolidated balance sheet. (d) Fair values are on a gross basis, before consideration of master netting agreements, as required by ASC 815, Derivatives and Hedging. (e) Effect of master netting agreements includes cash collateral received and paid of $836 million and $565 million , respectively, at June 30, 2019 , and $809 million and $1,040 million , respectively, at Dec. 31, 2018 . Trading activities (including trading derivatives) Our trading activities are focused on acting as a market-maker for our customers, facilitating customer trades and risk mitigating economic hedging in compliance with the Volcker Rule. The change in the fair value of the derivatives utilized in our trading activities is recorded in foreign exchange and other trading revenue on the consolidated income statement. The following table presents our foreign exchange and other trading revenue. Foreign exchange and other trading revenue (in millions) 2Q19 1Q19 2Q18 YTD19 YTD18 Foreign exchange $ 150 $ 160 $ 171 $ 310 $ 354 Other trading revenue 16 10 16 26 42 Total foreign exchange and other trading revenue $ 166 $ 170 $ 187 $ 336 $ 396 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. We also use derivative financial instruments as risk mitigating economic hedges, which are not formally designated as accounting hedges. This includes hedging the foreign currency, interest rate or market risks inherent in some of our balance sheet exposures, such as seed capital investments and deposits, as well as certain investment management fee revenue streams. We also use total return swaps to economically hedge obligations arising from the Company’s deferred compensation plan whereby the participants defer compensation and earn a return linked to the performance of investments they select. The gains or losses on these total return swaps are recorded in staff expense on the consolidated income statement and were a gain of $5 million in the second quarter of 2019 , $2 million in the second quarter of 2018 , $18 million in the first quarter of 2019 , $23 million in the first six months of 2019 and a loss of $1 million in the first six months of 2018 . 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. 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 and/or highly liquid government securities. Collateral requirements are monitored and adjusted daily. Additional disclosures concerning derivative financial instruments are provided in Note 16. Disclosure of contingent features in OTC derivative instruments Certain OTC derivative contracts and/or collateral agreements contain credit-risk contingent features triggered upon a rating downgrade in which the counterparty has the right to request additional collateral or the right to terminate the contracts in a net liability position. The following table shows the aggregate fair value of OTC derivative contracts in net liability positions that contained credit-risk contingent features and the value of collateral that has been posted. June 30, 2019 Dec. 31, 2018 (in millions) Aggregate fair value of OTC derivatives in net liability positions (a) $ 3,296 $ 2,877 Collateral posted $ 3,443 $ 2,801 (a) Before consideration of cash collateral. The aggregate fair value of OTC derivative contracts containing credit-risk contingent features can fluctuate from quarter to quarter due to changes in market conditions, composition of counterparty trades, new business or changes to the contingent features. The Bank of New York Mellon, our largest banking subsidiary, enters into the substantial majority of our OTC derivative contracts and/or collateral agreements. As such, the contingent features may be triggered if The Bank of New York Mellon’s long-term issuer rating was downgraded. The following table shows the fair value of contracts falling under early termination provisions that were in net liability positions for three key ratings triggers. Potential close-out exposures (fair value) (a) (in millions) June 30, 2019 Dec. 31, 2018 If The Bank of New York Mellon’s rating changed to: (b) A3/A- $ 8 $ 15 Baa2/BBB $ 358 $ 116 Ba1/BB+ $ 1,493 $ 1,041 (a) The amounts represent potential total close-out values if The Bank of New York Mellon’s long-term issuer rating were to immediately drop to the indicated levels, and do not reflect collateral posted. (b) Represents rating by Moody’s/S&P. If The Bank of New York Mellon’s debt rating had fallen below investment grade on June 30, 2019 and Dec. 31, 2018 , existing collateral arrangements would have required us to post additional collateral of $66 million and $100 million , respectively. 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 June 30, 2019 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 $ 2,963 $ 2,347 $ 616 $ 181 $ — $ 435 Foreign exchange contracts 3,729 3,213 516 10 — 506 Equity and other contracts 33 8 25 — — 25 Total derivatives subject to netting arrangements 6,725 5,568 1,157 191 — 966 Total derivatives not subject to netting arrangements 1,828 — 1,828 — — 1,828 Total derivatives 8,553 5,568 2,985 191 — 2,794 Reverse repurchase agreements 127,691 78,433 (b) 49,258 49,245 — 13 Securities borrowing 11,943 — 11,943 11,618 — 325 Total $ 148,187 $ 84,001 $ 64,186 $ 61,054 $ — $ 3,132 (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 FICC, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. Offsetting of derivative assets and financial assets at Dec. 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 $ 2,654 $ 2,202 $ 452 $ 133 $ — $ 319 Foreign exchange contracts 4,409 3,724 685 70 — 615 Equity and other contracts 38 13 25 — — 25 Total derivatives subject to netting arrangements 7,101 5,939 1,162 203 — 959 Total derivatives not subject to netting arrangements 1,653 — 1,653 — — 1,653 Total derivatives 8,754 5,939 2,815 203 — 2,612 Reverse repurchase agreements 112,245 76,040 (b) 36,205 36,205 — — Securities borrowing 10,588 — 10,588 10,286 — 302 Total $ 131,587 $ 81,979 $ 49,608 $ 46,694 $ — $ 2,914 (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 FICC, 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 June 30, 2019 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 $ 3,885 $ 2,637 $ 1,248 $ 1,187 $ — $ 61 Foreign exchange contracts 3,475 2,660 815 139 — 676 Equity and other contracts 4 — 4 — — 4 Total derivatives subject to netting arrangements 7,364 5,297 2,067 1,326 — 741 Total derivatives not subject to netting arrangements 555 — 555 — — 555 Total derivatives 7,919 5,297 2,622 1,326 — 1,296 Repurchase agreements 87,308 78,433 (b) 8,875 8,875 — — Securities lending 871 — 871 840 — 31 Total $ 96,098 $ 83,730 $ 12,368 $ 11,041 $ — $ 1,327 (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 FICC, 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 Dec. 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 $ 3,144 $ 2,508 $ 636 $ 547 $ — $ 89 Foreign exchange contracts 4,747 3,626 1,121 187 — 934 Equity and other contracts 75 36 39 37 — 2 Total derivatives subject to netting arrangements 7,966 6,170 1,796 771 — 1,025 Total derivatives not subject to netting arrangements 572 — 572 — — 572 Total derivatives 8,538 6,170 2,368 771 — 1,597 Repurchase agreements 84,665 76,040 (b) 8,625 8,625 — — Securities lending 997 — 997 937 — 60 Total $ 94,200 $ 82,210 $ 11,990 $ 10,333 $ — $ 1,657 (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 FICC, 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 June 30, 2019 Dec. 31, 2018 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 $ 80,367 $ — $ — $ 80,367 $ 76,822 $ — $ — $ 76,822 U.S. government agencies 826 — — 826 759 — — 759 Agency RMBS 2,205 — — 2,205 3,184 — 4 3,188 Corporate bonds 335 — 1,485 1,820 416 — 1,413 1,829 Other debt securities 284 — 931 1,215 271 — 1,106 1,377 Equity securities 241 — 634 875 163 — 527 690 Total $ 84,258 $ — $ 3,050 $ 87,308 $ 81,615 $ — $ 3,050 $ 84,665 Securities lending: U.S. government agencies $ 30 $ — $ — $ 30 $ 7 $ — $ — $ 7 Other debt securities 200 — — 200 294 — — 294 Equity securities 641 — — 641 696 — — 696 Total $ 871 $ — $ — $ 871 $ 997 $ — $ — $ 997 Total borrowings $ 85,129 $ — $ 3,050 $ 88,179 $ 82,612 $ — $ 3,050 $ 85,662 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 | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 Dec. 31, 2018 (in millions) Lending commitments $ 51,191 $ 50,631 Standby letters of credit (a) 2,465 2,817 Commercial letters of credit 60 165 Securities lending indemnifications (b)(c) 406,180 401,504 (a) Net of participations totaling $162 million at June 30, 2019 and $163 million at Dec. 31, 2018 . (b) Excludes the indemnification for securities for which BNY Mellon acts as an agent on behalf of CIBC Mellon clients, which totaled $62 billion at June 30, 2019 and $56 billion at Dec. 31, 2018 . (c) Includes cash collateral, invested in indemnified repurchase agreements, held by us as securities lending agent of $45 billion at June 30, 2019 and $35 billion at Dec. 31, 2018 . 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: $31.8 billion in less than one year, $18.9 billion in one to five years and $539 million over five years. SBLCs principally support obligations of corporate clients and were collateralized with cash and securities of $219 million at June 30, 2019 and $223 million at Dec. 31, 2018 . At June 30, 2019 , $1.6 billion of the SBLCs will expire within one year and $831 million 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. 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 June 30, 2019 Dec. 31, 2018 Investment grade 90 % 89 % Non-investment grade 10 % 11 % 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 $60 million at June 30, 2019 and $165 million at Dec. 31, 2018 . 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. The allowance for lending-related commitments was $95 million at June 30, 2019 and $106 million at Dec. 31, 2018 . 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 $425 billion at June 30, 2019 and $420 billion at Dec. 31, 2018 . 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 June 30, 2019 and Dec. 31, 2018 , $62 billion and $56 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 $66 billion and $59 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. Unsettled repurchase and reverse repurchase agreements In the normal course of business, we enter into repurchase agreements and reverse repurchase agreements that settle at a future date. In repurchase agreements, BNY Mellon receives cash from and provides securities as collateral to a counterparty at settlement. In reverse repurchase agreements, BNY Mellon advances cash to and receives securities as collateral from the counterparty at settlement. These transactions are recorded on the consolidated balance sheet on settlement date. At June 30, 2019 , we had $275 million of unsettled repurchase agreements and $28.4 billion of unsettled reverse repurchase agreements which all settled the following day. Industry concentrations We have significant industry concentrations related to credit exposure at June 30, 2019 . The tables below present our credit exposure in the financial institutions and commercial portfolios. Financial institutions portfolio exposure (in billions) June 30, 2019 Loans Unfunded commitments Total exposure Securities industry $ 2.5 $ 24.3 $ 26.8 Asset managers 1.4 6.7 8.1 Banks 6.5 1.0 7.5 Insurance 0.1 2.4 2.5 Government 0.1 0.3 0.4 Other 0.9 0.9 1.8 Total $ 11.5 $ 35.6 $ 47.1 Commercial portfolio exposure (in billions) June 30, 2019 Loans Unfunded commitments Total exposure Manufacturing $ 0.7 $ 4.7 $ 5.4 Services and other 0.7 3.9 4.6 Energy and utilities 0.3 3.8 4.1 Media and telecom — 1.2 1.2 Total $ 1.7 $ 13.6 $ 15.3 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. Sponsored Member Repo Program BNY Mellon is a sponsoring member in the FICC sponsored member program, where we submit eligible overnight repurchase and reverse repurchase transactions in U.S. treasury securities (“Sponsored Member Transactions”) between BNY Mellon and our sponsored member clients for novation and clearing through FICC pursuant to the FICC Government Securities Division rulebook (the “FICC Rules”). We also guarantee to FICC the prompt and full payment and performance of our sponsored member clients’ respective obligations under the FICC Rules in connection with such clients’ Sponsored Member Transactions. We minimize our credit exposure under this guaranty by obtaining a security interest in our sponsored member clients’ collateral and rights under Sponsored Member Transactions. See “Offsetting assets and liabilities” in Note 18 for additional information on our repurchase and reverse repurchase agreements. 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 June 30, 2019 and Dec. 31, 2018 , 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 June 30, 2019 and Dec. 31, 2018 , we have not recorded any material liabilities under these arrangements. Legal proceedings In the ordinary course of business, BNY Mellon is 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 our results of operations in a given period. In view of the inherent unpredictability of outcomes in litigation 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 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 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 regularly monitors 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 continues 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 the results of operations 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 $930 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 233 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. On July 12, 2018, a federal district court dismissed six of the individual lawsuits and those cases are on appeal. On March 8, 2019, a group of investors filed a putative class action against The Bank of New York Mellon, making the same allegations as in the prior actions brought against Pershing. On March 21, 2019, the Texas federal court denied the motion for class certification in one of the putative class actions against Pershing. FINRA arbitration proceedings also have been initiated by alleged purchasers asserting similar claims. Brazilian Postalis Litigation BNY Mellon Servicos Financeiros DTVM S.A. (“DTVM”), a subsidiary that provides asset services in Brazil, acts as administrator for certain investment funds in which a public pension fund for postal workers called Postalis-Instituto de Seguridade Social dos Correios e Telégrafos (“Postalis”) invested. On Aug. 22, 2014, Postalis sued DTVM in Rio de Janeiro, Brazil for losses related to a Postalis fund for which DTVM is administrator. Postalis alleges that DTVM failed to properly perform duties, including to conduct due diligence of and exert control over the manager. 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 duties relating to another fund of which DTVM is administrator and Ativos is 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 Postalis investment losses. On March 20, 2017, the lawsuit was dismissed without prejudice, and ADCAP has appealed that decision. On Dec. 17, 2015, Postalis filed three lawsuits in Rio de Janeiro against DTVM and Ativos alleging failure to properly perform duties with respect to investments in several other funds. On Feb. 4, 2016, Postalis filed a 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 funds of which the defendants were administrator and/or manager. On Jan. 16, 2018, the Brazilian Federal Prosecution Service (“MPF”) filed a civil lawsuit in São Paulo against DTVM alleging liability for Postalis losses based on alleged failures to properly perform certain duties 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, and the MPF has appealed that decision. In addition, the Tribunal de Contas da Uniao, an administrative tribunal, has initiated two proceedings with the purpose of determining liability for losses to two investment funds administered by DTVM in which Postalis was the exclusive investor. 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 were consolidated in federal court in the Southern District of New York. The parties in the lawsuits entered into settlement agreements to resolve the suits, and the agreements have been approved by the court. 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. German Tax Matters German authorities are investigating past “cum/ex” trading, which involved the purchase of equity securities on or shortly before the dividend date, but settled after that date, potentially resulting in an unwarranted refund of withholding tax. German authorities have taken the view that past cum/ex trading may have resulted in tax avoidance or evasion. European subsidiaries of BNY Mellon have been informed by German authorities about investigations into potential cum/ex trading by certain third-party investment funds, where one of the subsidiaries had acquired entities that served as depositary and/or fund manager for those third-party investment funds. We have received preliminary information requests from the authorities relating to pre-acquisition activity and are cooperating fully with those requests. We have not received any tax demand concerning cum/ex trading. In addition, in June 2019, one of these subsidiaries received notice that the District Court of Bonn is considering whether to add the subsidiary as a secondary party in connection with the prosecution of unrelated third parties. We intend to contest the possible addition of the subsidiary to those proceedings, which are scheduled to commence in September. In connection with the acquisition of the subject entities, we obtained an indemnity for liabilities from the sellers that we intend to pursue as necessary. |
Lines of business
Lines of business | 6 Months Ended |
Jun. 30, 2019 | |
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. The primary products and services and types of revenue for our principal businesses and a description of the Other segment are presented in Note 23 of the Notes to Consolidated Financial Statements in our 2018 Annual Report. 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 second quarter of 2019 . 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 2018 Annual Report. 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 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 securities portfolio. We typically allocate all interest revenue to the businesses generating the deposits. Accordingly, accretion related to the portion of the 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 June 30, 2019 Investment Investment Other Consolidated (dollars in millions) Total fee and other revenue $ 2,227 $ 850 (a) $ 41 $ 3,118 (a) Net interest revenue (expense) 775 67 (40 ) 802 Total revenue 3,002 917 (a) 1 3,920 (a) Provision for credit losses (4 ) (2 ) (2 ) (8 ) Noninterest expense 1,954 654 39 2,647 Income (loss) before taxes $ 1,052 $ 265 (a) $ (36 ) $ 1,281 (a) Pre-tax operating margin (b) 35 % 29 % N/M 33 % Average assets $ 264,639 $ 30,709 $ 47,036 $ 342,384 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of $6 million , representing $10 million of income and noncontrolling interests of $4 million . Income before taxes is net of noncontrolling interests of $4 million . (b) Income before taxes divided by total revenue. N/M - Not meaningful. For the quarter ended March 31, 2019 Investment Investment Other Consolidated (dollars in millions) Total fee and other revenue $ 2,154 $ 864 (a) $ 30 $ 3,048 (a) Net interest revenue (expense) 796 75 (30 ) 841 Total revenue 2,950 939 (a) — 3,889 (a) Provision for credit losses 8 1 (2 ) 7 Noninterest expense 1,969 669 61 2,699 Income (loss) before taxes $ 973 $ 269 (a) $ (59 ) $ 1,183 (a) Pre-tax operating margin (b) 33 % 29 % N/M 31 % Average assets $ 255,891 $ 31,857 $ 48,417 $ 336,165 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of $16 million , representing $26 million of income and noncontrolling interests of $10 million . Income before taxes is net of noncontrolling interests of $10 million . (b) Income before taxes divided by total revenue. N/M - Not meaningful. For the quarter ended June 30, 2018 Investment Investment Other Consolidated (dollars in millions) Total fee and other revenue $ 2,233 $ 941 (a) $ 41 $ 3,215 (a) Net interest revenue (expense) 874 77 (35 ) 916 Total revenue 3,107 1,018 (a) 6 4,131 (a) Provision for credit losses 1 2 (6 ) (3 ) Noninterest expense 1,967 697 81 2,745 (b) Income (loss) before taxes $ 1,139 $ 319 (a) $ (69 ) $ 1,389 (a)(b) Pre-tax operating margin (c) 37 % 31 % N/M 34 % Average assets $ 264,387 $ 31,504 $ 50,437 $ 346,328 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of $5 million , representing $12 million of income and noncontrolling interests of $7 million . Income before taxes is net of noncontrolling interests of $7 million . (b) Noninterest expense includes a loss 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 six months ended June 30, 2019 Investment Investment Other Consolidated (dollars in millions) Total fee and other revenue $ 4,381 $ 1,714 (a) $ 71 $ 6,166 (a) Net interest revenue (expense) 1,571 142 (70 ) 1,643 Total revenue 5,952 1,856 (a) 1 7,809 (a) Provision for credit losses 4 (1 ) (4 ) (1 ) Noninterest expense 3,923 1,323 100 5,346 Income (loss) before taxes $ 2,025 $ 534 (a) $ (95 ) $ 2,464 (a) Pre-tax operating margin (b) 34 % 29 % N/M 32 % Average assets $ 260,290 $ 30,926 $ 48,076 $ 339,292 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of $22 million , representing $36 million of income and noncontrolling interests of $14 million . Income before taxes is net of noncontrolling interests of $14 million . (b) Income before taxes divided by total revenue. N/M - Not meaningful. For the six months ended June 30, 2018 Investment Investment Other Consolidated (dollars in millions) Total fee and other revenue $ 4,483 $ 1,953 (a) $ 49 $ 6,485 (a) Net interest revenue (expense) 1,718 153 (36 ) 1,835 Total revenue 6,201 2,106 (a) 13 8,320 (a) Provision for credit losses (6 ) 4 (6 ) (8 ) Noninterest expense 3,916 1,402 168 5,486 Income (loss) before taxes $ 2,291 $ 700 (a) $ (149 ) $ 2,842 (a) Pre-tax operating margin (b) 37 % 33 % N/M 34 % Average assets $ 271,203 $ 31,732 $ 49,284 $ 352,219 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of $5 million , representing $1 million of income and a loss attributable to noncontrolling interests of $4 million . Income before taxes is net of a loss attributable to noncontrolling interests of $4 million . (b) Income before taxes divided by total revenue. N/M - Not meaningful. |
Supplemental information to the
Supplemental information to the Consolidated Statement of Cash Flows | 6 Months Ended |
Jun. 30, 2019 | |
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 Six months ended June 30, (in millions) 2019 2018 Transfers from loans to other assets for other real estate owned $ — $ 2 Change in assets of consolidated investment management funds 76 303 Change in liabilities of consolidated investment management funds 4 1 Change in nonredeemable noncontrolling interests of consolidated investment management funds 65 264 Securities purchased not settled 1,113 400 Securities matured not settled 10 25 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 financing lease obligations 14 15 Premises and equipment/operating lease obligations 1,272 (a) — (a) Includes $1,244 million related to the adoption of ASU 2016-02, Leases, and $28 million related to new or modified leases. |
Basis of presentation (Policies
Basis of presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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. GAAP and prevailing industry practices. For information on our significant accounting and reporting policies, see Note 1 in our 2018 Annual Report. |
Reclassifications | Certain immaterial reclassifications have been made to prior periods to place them on a basis comparable with the 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, goodwill and other intangibles and litigation and regulatory contingencies. Among other effects, such changes in estimates could result in future impairments of goodwill and intangible assets and establishment of allowances for loan losses and lending-related commitments as well as accruals for litigation and regulatory contingencies. |
Accounting changes and new accounting guidance | The following accounting changes and new accounting guidance were adopted in the first quarter of 2019. ASU 2016-02, Leases In February 2016, the FASB issued an ASU, Leases . The primary objective of this ASU is to increase transparency and comparability by recognizing lease assets and liabilities on the balance sheet and expand related disclosures. This ASU requires a “right-of-use” asset and a payment obligation liability on the balance sheet for most leases and subleases. Additionally, depending on the lease classification under the standard, it may result in different expense recognition patterns and classification than under existing accounting principles. For leases classified as finance leases, it will result in higher expense recognition in the earlier periods and lower expense in the later periods of the lease. The Company adopted this guidance on Jan. 1, 2019 using the alternative transition method on a prospective basis and recognized right-of-use assets of $1.3 billion and lease liabilities of $1.5 billion on the consolidated balance sheet, both based on the present value of the expected remaining lease payments. See Note 6 for the disclosures required by this ASU. ASU 2018-02, Income Statement—Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued an ASU, Income Statement—Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU permits a reclassification from accumulated other comprehensive income to retained earnings for the tax effects of items within accumulated other comprehensive income that do not reflect the lower statutory tax rate which was enacted by the 2017 U.S. tax legislation. BNY Mellon adopted this guidance in the first quarter of 2019, which resulted in a $90 million reclassification that decreased accumulated other comprehensive income and increased retained earnings. |
Leasing | Significant accounting policy We determine if an arrangement is a lease at inception. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments. The ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. We use our incremental borrowing rate based on the information available at commencement date of the lease in determining the present value of lease payments. In addition to the lease payments, the determination of an ROU asset may also include certain adjustments related to lease incentives and initial direct costs incurred. Options to extend or terminate a lease are included in the determination of the ROU asset and lease liability only when it is reasonably certain that we will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term, while the lease expense for finance leases is recognized using the effective interest method. ROU assets are reviewed for impairment when events or circumstances indicate that the carrying amount may not be recoverable. For operating leases, if deemed impaired, the ROU asset is written down and the remaining balance is subsequently amortized on a straight-line basis which results in lease expense recognition that is similar to finance leases. We have elected to account for the lease and non-lease components as a single lease component and exclude the non-lease variable components. Additionally, for certain equipment leases, we apply a portfolio approach to account for the operating lease ROU assets and liabilities. BNY Mellon engages in subleasing activities and reports the rental income as part of net occupancy expense, as this activity is not a significant business activity and is part of the Company’s customary business practice. |
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 19 of the Notes to Consolidated Financial Statements in our 2018 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 June 30, 2019 and Dec. 31, 2018 , 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. |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and Dec. 31, 2018 , respectively. Securities at June 30, 2019 Gross unrealized Amortized cost Fair value (in millions) Gains Losses Available-for-sale: Agency RMBS $ 26,225 $ 145 $ 166 $ 26,204 U.S. Treasury 13,805 424 32 14,197 Sovereign debt/sovereign guaranteed 12,184 161 3 12,342 Agency commercial MBS 9,499 194 15 9,678 Supranational 3,878 38 2 3,914 CLOs 3,665 1 17 3,649 Foreign covered bonds 3,385 17 4 3,398 U.S. government agencies 2,585 65 — 2,650 Other ABS 2,466 8 4 2,470 Non-agency commercial MBS 1,968 38 1 2,005 State and political subdivisions 1,253 28 1 1,280 Non-agency RMBS (a) 999 230 8 1,221 Corporate bonds 889 19 3 905 Other debt securities 1,671 9 — 1,680 Total securities available-for-sale (b) $ 84,472 $ 1,377 $ 256 $ 85,593 Held-to-maturity: Agency RMBS $ 26,591 $ 195 $ 127 $ 26,659 U.S. Treasury 4,467 24 9 4,482 U.S. government agencies 1,276 1 1 1,276 Agency commercial MBS 1,179 22 1 1,200 Sovereign debt/sovereign guaranteed 823 39 — 862 Non-agency RMBS 91 4 2 93 Foreign covered bonds 80 1 — 81 Supranational 25 — — 25 State and political subdivisions 17 — — 17 Total securities held-to-maturity $ 34,549 $ 286 $ 140 $ 34,695 Total securities $ 119,021 $ 1,663 $ 396 $ 120,288 (a) Includes $753 million that was included in the former Grantor Trust. (b) Includes gross unrealized gains of $36 million and gross unrealized losses of $76 million recorded in accumulated other comprehensive income related to 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, 2018 Gross unrealized Amortized cost Fair value (in millions) Gains Losses Available-for-sale: Agency RMBS $ 25,594 $ 83 $ 369 $ 25,308 U.S. Treasury 20,190 96 210 20,076 Sovereign debt/sovereign guaranteed 10,663 108 21 10,750 Agency commercial MBS 9,836 16 161 9,691 CLOs 3,410 — 46 3,364 Supranational 2,985 7 8 2,984 Foreign covered bonds 2,890 7 19 2,878 State and political subdivisions 2,251 18 22 2,247 Other ABS 1,776 1 4 1,773 U.S. government agencies 1,676 5 24 1,657 Non-agency commercial MBS 1,491 1 28 1,464 Non-agency RMBS (a) 1,095 241 11 1,325 Corporate bonds 1,074 6 26 1,054 Other debt securities 1,236 6 4 1,238 Total securities available-for-sale (b) $ 86,167 $ 595 $ 953 $ 85,809 Held-to-maturity: Agency RMBS $ 25,507 $ 32 $ 632 $ 24,907 U.S. Treasury 4,727 3 77 4,653 U.S. government agencies 1,497 — 10 1,487 Agency commercial MBS 1,195 — 26 1,169 Sovereign debt/sovereign guaranteed 833 26 — 859 Non-agency RMBS 100 4 2 102 Foreign covered bonds 80 1 — 81 Supranational 26 1 — 27 State and political subdivisions 17 — — 17 Total securities held-to-maturity $ 33,982 $ 67 $ 747 $ 33,302 Total securities $ 120,149 $ 662 $ 1,700 $ 119,111 (a) Includes $832 million that was included in the former Grantor Trust. (b) Includes gross unrealized gains of $39 million and gross unrealized losses of $87 million recorded in accumulated other comprehensive income related to 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 Gains, Losses, and Impairments | The following table presents the realized gains, losses and impairments, on a gross basis. Net securities gains (losses) (in millions) 2Q19 1Q19 2Q18 YTD19 YTD18 Realized gross gains $ 12 $ 5 $ 2 $ 17 $ 4 Realized gross losses (5 ) (4 ) (1 ) (9 ) (52 ) Recognized gross impairments — — — — — Total net securities gains (losses) $ 7 $ 1 $ 1 $ 8 $ (48 ) |
Pre-Tax Securities Gains (Losses) by Type | The following table presents pre-tax net securities gains (losses) by type. Net securities gains (losses) (in millions) 2Q19 1Q19 2Q18 YTD19 YTD18 U.S. Treasury $ 3 $ 1 $ — $ 4 $ (4 ) Sovereign debt/sovereign guaranteed 2 1 — 3 — State and political subdivisions 2 — 1 2 (1 ) Agency RMBS — — — — (42 ) Other — (1 ) — (1 ) (1 ) Total net securities gains (losses) $ 7 $ 1 $ 1 $ 8 $ (48 ) |
Aggregate Fair Value of Investments with Continuous Unrealized Loss Position | The following tables show the aggregate fair value of securities 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. Temporarily impaired securities at June 30, 2019 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: Agency RMBS $ 9,070 $ 31 $ 7,410 $ 135 $ 16,480 $ 166 U.S. Treasury 74 1 2,961 31 3,035 32 Sovereign debt/sovereign guaranteed 1,680 1 738 2 2,418 3 Agency commercial MBS 2,353 6 1,030 9 3,383 15 Supranational 814 1 206 1 1,020 2 CLOs 1,346 4 1,134 13 2,480 17 Foreign covered bonds 568 1 707 3 1,275 4 Other ABS 1,053 4 31 — 1,084 4 Non-agency commercial MBS 414 1 38 — 452 1 State and political subdivisions — — 116 1 116 1 Non-agency RMBS (a) 26 — 121 8 147 8 Corporate bonds 26 — 238 3 264 3 Total securities available-for-sale (b) $ 17,424 $ 50 $ 14,730 $ 206 $ 32,154 $ 256 Held-to-maturity: Agency RMBS $ 623 $ 1 $ 12,922 $ 126 $ 13,545 $ 127 U.S. Treasury — — 2,066 9 2,066 9 U.S. government agencies 50 — 407 1 457 1 Agency commercial MBS — — 57 1 57 1 Non-agency RMBS 7 — 42 2 49 2 Total securities held-to-maturity $ 680 $ 1 $ 15,494 $ 139 $ 16,174 $ 140 Total temporarily impaired securities $ 18,104 $ 51 $ 30,224 $ 345 $ 48,328 $ 396 (a) Includes $6 million of securities with an unrealized loss of less than $1 million for less than 12 months and $3 million of securities with an unrealized loss of less than $1 million for 12 months or more that were included in the former Grantor Trust. (b) Includes gross unrealized losses of $76 million for 12 months or more recorded in accumulated other comprehensive income related to 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, 2018 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: Agency RMBS $ 6,678 $ 30 $ 9,250 $ 339 $ 15,928 $ 369 U.S. Treasury 6,126 23 6,880 187 13,006 210 Sovereign debt/sovereign guaranteed 2,185 8 988 13 3,173 21 Agency commercial MBS 4,505 50 3,082 111 7,587 161 CLOs 3,280 46 2 — 3,282 46 Supranational 974 2 481 6 1,455 8 Foreign covered bonds 1,058 7 736 12 1,794 19 State and political subdivisions 316 1 668 21 984 22 Other ABS 1,289 4 23 — 1,312 4 U.S. government agencies 513 4 673 20 1,186 24 Non-agency commercial MBS 1,015 14 362 14 1,377 28 Non-agency RMBS (a) 94 1 157 10 251 11 Corporate bonds 685 24 50 2 735 26 Other debt securities 397 1 256 3 653 4 Total securities available-for-sale (b) $ 29,115 $ 215 $ 23,608 $ 738 $ 52,723 $ 953 Held-to-maturity: Agency RMBS $ 4,602 $ 56 $ 17,107 $ 576 $ 21,709 $ 632 U.S. Treasury 157 2 4,343 75 4,500 77 U.S. government agencies — — 1,111 10 1,111 10 Agency commercial MBS 477 7 654 19 1,131 26 Non-agency RMBS 22 1 31 1 53 2 Total securities held-to-maturity $ 5,258 $ 66 $ 23,246 $ 681 $ 28,504 $ 747 Total temporarily impaired securities $ 34,373 $ 281 $ 46,854 $ 1,419 $ 81,227 $ 1,700 (a) Includes $22 million of securities with an unrealized loss of less than $1 million for less than 12 months and $3 million of securities with an unrealized loss of less than $1 million for 12 months or more that were included in the former Grantor Trust. (b) Includes gross unrealized losses of $87 million for 12 months or more recorded in accumulated other comprehensive income related to 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 securities portfolio. Maturity distribution and yields on securities at June 30, 2019 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 $ 3,152 2.59 % $ 80 2.28 % $ 189 2.97 % $ 7,148 1.32 % $ — — % $ 10,569 Over 1 through 5 years 5,057 1.81 991 2.68 849 3.16 12,999 1.34 — — 19,896 Over 5 through 10 years 3,283 2.31 1,579 2.81 130 3.05 1,883 0.84 — — 6,875 Over 10 years 2,705 3.11 — — 112 2.96 209 1.78 — — 3,026 Mortgage-backed securities — — — — — — — — 39,108 3.18 39,108 Asset-backed securities — — — — — — — — 6,119 3.33 6,119 Total $ 14,197 2.35 % $ 2,650 2.74 % $ 1,280 3.10 % $ 22,239 1.30 % $ 45,227 3.20 % $ 85,593 Securities held-to-maturity: One year or less $ 1,556 1.48 % $ 333 1.31 % $ — — % $ 82 0.64 % $ — — % $ 1,971 Over 1 through 5 years 2,600 1.96 759 2.33 3 5.68 487 0.57 — — 3,849 Over 5 through 10 years 311 2.18 172 2.89 — — 359 0.81 — — 842 Over 10 years — — 12 3.25 14 4.76 — — — — 26 Mortgage-backed securities — — — — — — — — 27,861 2.98 27,861 Total $ 4,467 1.81 % $ 1,276 2.15 % $ 17 4.93 % $ 928 0.67 % $ 27,861 2.98 % $ 34,549 (a) Yields are based upon the amortized cost of securities. |
Debt Securities Credit Losses Roll Forward Recorded in Earnings | The following table reflects 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) 2Q19 2Q18 Beginning balance as of March 31 $ 77 $ 80 Add: Initial OTTI credit losses — — Subsequent OTTI credit losses — — Less: Realized losses for securities sold — 1 Ending balance as of June 30 $ 77 $ 79 Debt securities credit loss roll forward (in millions) YTD19 YTD18 Beginning balance as of Dec. 31 $ 78 $ 84 Add: Initial OTTI credit losses — — Subsequent OTTI credit losses — — Less: Realized losses for securities sold 1 5 Ending balance as of June 30 $ 77 $ 79 |
Loans and asset quality (Tables
Loans and asset quality (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and Dec. 31, 2018 . Loans June 30, 2019 Dec. 31, 2018 (in millions) Domestic: Commercial $ 1,452 $ 1,949 Commercial real estate 5,192 4,787 Financial institutions 4,574 5,091 Lease financings 662 706 Wealth management loans and mortgages 15,579 15,843 Other residential mortgages 549 594 Overdrafts 1,575 1,550 Other 1,122 1,181 Margin loans 10,152 13,343 Total domestic 40,857 45,044 Foreign: Commercial 285 183 Commercial real estate 7 — Financial institutions 6,948 6,492 Lease financings 563 551 Wealth management loans and mortgages 90 122 Other (primarily overdrafts) 3,196 4,031 Margin loans 450 141 Total foreign 11,539 11,520 Total loans (a) $ 52,396 $ 56,564 (a) Net of unearned income of $340 million at June 30, 2019 and $358 million at Dec. 31, 2018 primarily related to domestic and foreign lease financings. |
Summary of Transactions in the Allowance for Credit Losses | Activity in the allowance for credit losses is summarized as follows. Allowance for credit losses activity for the quarter ended June 30, 2019 Wealth management loans and mortgages Other residential mortgages (in millions) Commercial Commercial real estate Financial institutions Lease financings All other Foreign Total Beginning balance $ 82 $ 74 $ 23 $ 4 $ 21 $ 15 $ — $ 29 $ 248 Charge-offs — — — — (1 ) — — — (1 ) Recoveries — — — — — 2 — — 2 Net (charge-offs) recoveries — — — — (1 ) 2 — — 1 Provision (5 ) (2 ) (2 ) — — (3 ) — 4 (8 ) Ending balance $ 77 $ 72 $ 21 $ 4 $ 20 $ 14 $ — $ 33 $ 241 Allowance for: Loan losses $ 23 $ 57 $ 8 $ 4 $ 17 $ 14 $ — $ 23 $ 146 Lending-related commitments 54 15 13 — 3 — — 10 95 Individually evaluated for impairment: Loan balance $ 96 $ — $ — $ — $ 16 $ — $ — $ — $ 112 Allowance for loan losses 10 — — — — — — — 10 Collectively evaluated for impairment: Loan balance $ 1,356 $ 5,192 $ 4,574 $ 662 $ 15,563 $ 549 $ 12,849 (a) $ 11,539 $ 52,284 Allowance for loan losses 13 57 8 4 17 14 — 23 136 (a) Includes $1,575 million of domestic overdrafts, $10,152 million of margin loans and $1,122 million of other loans at June 30, 2019 . Allowance for credit losses activity for the quarter ended March 31, 2019 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 $ 22 $ 5 $ 21 $ 16 $ — $ 32 $ 252 Charge-offs (11 ) — — — — — — — (11 ) Recoveries — — — — — — — — — Net charge-offs (11 ) — — — — — — — (11 ) Provision 12 (1 ) 1 (1 ) — (1 ) — (3 ) 7 Ending balance $ 82 $ 74 $ 23 $ 4 $ 21 $ 15 $ — $ 29 $ 248 Allowance for: Loan losses $ 24 $ 56 $ 10 $ 4 $ 18 $ 15 $ — $ 19 $ 146 Lending-related commitments 58 18 13 — 3 — — 10 102 Individually evaluated for impairment: Loan balance $ 96 $ — $ — $ — $ 4 $ — $ — $ — $ 100 Allowance for loan losses 10 — — — — — — — 10 Collectively evaluated for impairment: Loan balance $ 1,626 $ 4,921 $ 4,652 $ 653 $ 15,724 $ 574 $ 13,913 (a) $ 11,324 $ 53,387 Allowance for loan losses 14 56 10 4 18 15 — 19 136 (a) Includes $654 million of domestic overdrafts, $12,107 million of margin loans and $1,152 million of other loans at March 31, 2019 . Allowance for credit losses activity for the quarter ended June 30, 2018 Wealth management loans and mortgages Other residential mortgages All other Foreign Total (in millions) Commercial Commercial real estate Financial institutions Lease financings Beginning balance $ 75 $ 75 $ 22 $ 7 $ 23 $ 19 $ — $ 35 $ 256 Charge-offs — — — — — — — — — Recoveries — — — — — 1 — — 1 Net recoveries — — — — — 1 — — 1 Provision 1 (1 ) 2 (1 ) — (2 ) — (2 ) (3 ) Ending balance $ 76 $ 74 $ 24 $ 6 $ 23 $ 18 $ — $ 33 $ 254 Allowance for: Loan losses $ 17 $ 55 $ 8 $ 6 $ 19 $ 18 $ — $ 22 $ 145 Lending-related commitments 59 19 16 — 4 — — 11 109 Individually evaluated for impairment: Loan balance $ — $ — $ — $ — $ 5 $ — $ — $ — $ 5 Allowance for loan losses — — — — — — — — — Collectively evaluated for impairment: Loan balance $ 2,117 $ 4,974 $ 5,526 $ 758 $ 16,186 $ 653 $ 17,173 (a) $ 10,384 $ 57,771 Allowance for loan losses 17 55 8 6 19 18 — 22 145 (a) Includes $1,090 million of domestic overdrafts, $14,914 million of margin loans and $1,169 million of other loans at June 30, 2018 . Allowance for credit losses activity for the six months ended June 30, 2019 Wealth management loans and mortgages Other All Foreign Total (in millions) Commercial Commercial Financial Lease Beginning balance $ 81 $ 75 $ 22 $ 5 $ 21 $ 16 $ — $ 32 $ 252 Charge-offs (11 ) — — — (1 ) — — — (12 ) Recoveries — — — — — 2 — — 2 Net (charge-offs) recoveries (11 ) — — — (1 ) 2 — — (10 ) Provision 7 (3 ) (1 ) (1 ) — (4 ) — 1 (1 ) Ending balance $ 77 $ 72 $ 21 $ 4 $ 20 $ 14 $ — $ 33 $ 241 Allowance for credit losses activity for the six months ended June 30, 2018 Wealth management loans and mortgages Other All Foreign Total (in millions) Commercial Commercial Financial Lease Beginning balance $ 77 $ 76 $ 23 $ 8 $ 22 $ 20 $ — $ 35 $ 261 Charge-offs — — — — — — — — — Recoveries — — — — — 1 — — 1 Net recoveries — — — — — 1 — — 1 Provision (1 ) (2 ) 1 (2 ) 1 (3 ) — (2 ) (8 ) Ending balance $ 76 $ 74 $ 24 $ 6 $ 23 $ 18 $ — $ 33 $ 254 |
Distribution of Nonperforming Assets | The table below presents our nonperforming assets. Nonperforming assets (in millions) June 30, 2019 Dec. 31, 2018 Nonperforming loans: Commercial $ 96 $ — Other residential mortgages 65 67 Wealth management loans and mortgages 23 9 Total nonperforming loans 184 76 Other assets owned 2 3 Total nonperforming assets (a) $ 186 $ 79 (a) In the second quarter of 2019, we refined the application of our nonperforming assets policy for first lien residential mortgage loans greater than 90 days delinquent that resulted in a $12 million increase in nonperforming assets. |
Information about Impaired Loans | The tables below present information about our impaired loans. Impaired loans 2Q19 1Q19 2Q18 YTD19 YTD18 (in millions) Average recorded investment Interest revenue recognized Average recorded investment Interest revenue recognized Average recorded investment Interest revenue recognized Average recorded investment Interest revenue recognized Average recorded investment Interest revenue recognized Impaired loans with an allowance: Commercial $ 96 $ — $ 48 $ — $ — $ — $ 64 $ — $ — $ — Wealth management loans and mortgages — — — — 1 — — — 1 — Total impaired loans with an allowance 96 — 48 — 1 — 64 — 1 — Impaired loans without an allowance: (a) Wealth management loans and mortgages 10 — 4 — 4 — 8 — 4 — Total impaired loans $ 106 $ — $ 52 $ — $ 5 $ — $ 72 $ — $ 5 $ — (a) When the discounted cash flows, collateral value or market price equals or exceeds the carrying value of the loan, then the loan does not require an allowance under the accounting standard related to impaired loans. Impaired loans June 30, 2019 Dec. 31, 2018 (in millions) Recorded investment Unpaid principal balance Related allowance (a) Recorded investment Unpaid principal balance Related allowance (a) Impaired loans with an allowance: Commercial $ 96 $ 96 $ 10 $ — $ — $ — Impaired loans without an allowance: (b) Wealth management loans and mortgages 16 16 N/A 4 4 N/A Total impaired loans (c) $ 112 $ 112 $ 10 $ 4 $ 4 $ — (a) The allowance for impaired loans is included in the allowance for loan losses. (b) When the discounted cash flows, collateral value or market price equals or exceeds the carrying value of the loan, then the loan does not require an allowance under the accounting standard related to impaired loans. (c) Excludes an aggregate of less than $1 million of impaired loans in amounts individually less than $1 million at both June 30, 2019 and Dec. 31, 2018 , respectively. The allowance for loan losses associated with these loans totaled less than $1 million at both June 30, 2019 and Dec. 31, 2018 , respectively. N/A - Not applicable. |
Information about Past Due Loans | The table below presents our past due loans. Past due loans and still accruing interest June 30, 2019 Dec. 31, 2018 Days past due Total past due Days past due Total past due (in millions) 30-59 60-89 ≥90 30-59 60-89 ≥90 Wealth management loans and mortgages $ 19 $ 2 $ — $ 21 $ 22 $ 1 $ 5 $ 28 Other residential mortgages 11 1 — 12 12 6 7 25 Financial institutions 10 — — 10 3 3 — 6 Commercial real estate 9 — — 9 1 — — 1 Total past due loans $ 49 $ 3 $ — $ 52 $ 38 $ 10 $ 12 $ 60 |
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 June 30, 2019 Dec. 31, 2018 June 30, 2019 Dec. 31, 2018 June 30, 2019 Dec. 31, 2018 (in millions) Investment grade $ 1,555 $ 2,036 $ 4,577 $ 4,184 $ 9,338 $ 9,586 Non-investment grade 182 96 622 603 2,184 1,997 Total $ 1,737 $ 2,132 $ 5,199 $ 4,787 $ 11,522 $ 11,583 |
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 June 30, 2019 Dec. 31, 2018 (in millions) Wealth management loans: Investment grade $ 6,673 $ 6,901 Non-investment grade 161 106 Wealth management mortgages 8,835 8,958 Total $ 15,669 $ 15,965 |
Leasing (Tables)
Leasing (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases, Balance Sheet Information | The following table presents the consolidated balance sheet information related to operating and finance leases. Balance sheet information June 30, 2019 (dollar in millions) Operating Finance Total Right-of-use assets (a) $ 1,160 $ 21 $ 1,181 Lease liability (b) $ 1,358 $ 10 $ 1,368 Weighted average: Remaining lease term 8.3 years 3.3 years Discount rate (annualized) 3.17 % 2.78 % (a) Included in premises and equipment on the consolidated balance sheet. (b) Operating lease liabilities are included in other liabilities and finance lease liabilities are included in other borrowed funds, both on the consolidated balance sheet. |
Lease, Cost | The following table presents the components of lease expense. Lease expense Quarter ended Year-to-date (in millions) June 30, 2019 June 30, 2019 Operating lease expense $ 63 $ 132 Variable lease expense 10 19 Sublease income (8 ) (16 ) Finance lease expense: Amortization of right-of-use assets 2 4 Interest on lease liabilities — — Total finance lease expense $ 2 $ 4 Total lease expense $ 67 $ 139 The following table presents cash flow information related to leases. Cash flow information Six months ended (in millions) June 30, 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows from finance leases $ — Operating cash flows from operating leases $ 134 Financing cash flows from finance leases $ 12 |
Schedule of Future Minimum Rental Payments for Operating Leases | The following table presents the maturity of lease liabilities on operating leases prior to adopting ASU 2016-02, Leases . Maturities of lease liabilities Operating (in millions) For the year ended Dec. 31, 2019 $ 264 2020 244 2021 211 2022 172 2023 136 2024 and thereafter 432 Total $ 1,459 |
Lessee, Operating Lease, Liability, Maturity | The following table presents the maturities of lease liabilities after adopting ASU 2016-02, Leases . Maturities of lease liabilities Operating Finance (in millions) For the year ended Dec. 31, 2019 (excluding six months ended June 30, 2019) $ 148 $ 9 2020 271 1 2021 215 — 2022 175 — 2023 137 — 2024 and thereafter 600 — Total lease payments 1,546 10 Less: Imputed interest (188 ) — Total $ 1,358 $ 10 |
Finance Lease, Liability, Maturity | The following table presents the maturities of lease liabilities after adopting ASU 2016-02, Leases . Maturities of lease liabilities Operating Finance (in millions) For the year ended Dec. 31, 2019 (excluding six months ended June 30, 2019) $ 148 $ 9 2020 271 1 2021 215 — 2022 175 — 2023 137 — 2024 and thereafter 600 — Total lease payments 1,546 10 Less: Imputed interest (188 ) — Total $ 1,358 $ 10 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 $ 8,333 $ 8,970 $ 47 $ 17,350 Foreign currency translation (6 ) (7 ) — (13 ) Balance at June 30, 2019 $ 8,327 $ 8,963 $ 47 $ 17,337 Goodwill by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2017 $ 8,389 $ 9,128 $ 47 $ 17,564 Dispositions — (65 ) — (65 ) Foreign currency translation (31 ) (50 ) — (81 ) Balance at June 30, 2018 $ 8,358 $ 9,013 $ 47 $ 17,418 |
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, 2018 $ 758 $ 1,613 $ 849 $ 3,220 Amortization (41 ) (18 ) — (59 ) Foreign currency translation — (1 ) — (1 ) Balance at June 30, 2019 $ 717 $ 1,594 $ 849 $ 3,160 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 (72 ) (25 ) — (97 ) Foreign currency translation (1 ) (5 ) — (6 ) Balance at June 30, 2018 $ 815 $ 1,644 $ 849 $ 3,308 |
Breakdown of Intangible Assets by Type | The table below provides a breakdown of intangible assets by type. Intangible assets June 30, 2019 Dec. 31, 2018 (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 $ 1,573 $ (1,227 ) $ 346 10 years $ 1,572 $ (1,186 ) $ 386 Customer relationships—Investment Management 898 (714 ) 184 11 years 899 (699 ) 200 Other 65 (14 ) 51 14 years 26 (12 ) 14 Total subject to amortization 2,536 (1,955 ) 581 11 years 2,497 (1,897 ) 600 Not subject to amortization: (b) Tradenames 1,292 N/A 1,292 N/A 1,332 N/A 1,332 Customer relationships 1,287 N/A 1,287 N/A 1,288 N/A 1,288 Total not subject to amortization 2,579 N/A 2,579 N/A 2,620 N/A 2,620 Total intangible assets $ 5,115 $ (1,955 ) $ 3,160 N/A $ 5,117 $ (1,897 ) $ 3,220 (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) 2019 $ 117 2020 104 2021 81 2022 63 2023 52 |
Other assets (Tables)
Other assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Assets [Abstract] | |
Summary of Other Assets Presented on the Consolidated Balance Sheet | The following table provides the components of other assets presented on the consolidated balance sheet. Other assets June 30, 2019 Dec. 31, 2018 (in millions) Corporate/bank-owned life insurance $ 4,970 $ 4,937 Accounts receivable 4,322 3,692 Fails to deliver 4,057 2,274 Software 1,710 1,652 Prepaid pension assets 1,444 1,357 Renewable energy investments 1,201 1,264 Equity in a joint venture and other investments 1,156 1,064 Qualified affordable housing project investments 1,068 999 Income taxes receivable 743 1,125 Prepaid expense 539 385 Federal Reserve Bank stock 463 484 Seed capital 217 224 Fair value of hedging derivatives 156 289 Other (a) 1,691 1,552 Total other assets $ 23,737 $ 21,298 (a) At June 30, 2019 and Dec. 31, 2018 , other assets include $73 million and $111 million , respectively, of Federal Home Loan Bank stock, at cost. |
Equity Securities without Readily Determinable Fair Value | The following table presents the adjustments on the non-readily marketable equity securities. Non-readily marketable equity securities Life-to-date (in millions) 2Q19 1Q19 2Q18 YTD19 YTD18 Upward adjustments $ 2 $ — $ 5 $ 2 $ 25 $ 30 Downward adjustments (1 ) — — (1 ) — (2 ) Net adjustments $ 1 $ — $ 5 $ 1 $ 25 $ 28 |
Summary of Investments Valued Using NAV | The table below presents information on our investments valued using NAV. Investments valued using NAV June 30, 2019 Dec. 31, 2018 (dollars in millions) Fair value Unfunded commitments Redemption frequency Redemption notice period Fair value Unfunded commitments Redemption frequency Redemption notice period Seed capital $ 60 $ — Daily-quarterly 1-90 days $ 54 $ — Daily-quarterly 1-90 days Private equity investments (SBICs) (a) 81 54 N/A N/A 74 41 N/A N/A Other ( b) 37 — Daily-quarterly 1-95 days 87 — Daily-quarterly 1-95 days Total $ 178 $ 54 $ 215 $ 41 (a) Private equity investments 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) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present fee revenue related to contracts with customers, disaggregated by type of fee revenue, for each business segment. Disaggregation of contract revenue by business segment (a) Quarter ended June 30, 2019 March 31, 2019 June 30, 2018 (in millions) IS IM Other Total IS IM Other Total IS IM Other Total Fee revenue - contract revenue: Investment services fees: Asset servicing fees $ 1,089 $ 20 $ — $ 1,109 $ 1,073 $ 20 $ — $ 1,093 $ 1,098 $ 21 $ 1 $ 1,120 Clearing services fees (b) 411 — (1 ) 410 398 — — 398 401 — — 401 Issuer services fees 291 — — 291 251 — — 251 265 — — 265 Treasury services fees 140 1 — 141 132 — — 132 140 1 — 141 Total investment services fees (b) 1,931 21 (1 ) 1,951 1,854 20 — 1,874 1,904 22 1 1,927 Investment management and performance fees (b) 4 829 — 833 4 837 — 841 5 893 — 898 Financing-related fees 16 — 1 17 17 — — 17 15 — — 15 Distribution and servicing (13 ) 44 — 31 (14 ) 45 — 31 (14 ) 48 — 34 Investment and other income 69 (48 ) — 21 69 (49 ) — 20 69 (50 ) 1 20 Total fee revenue - contract revenue 2,007 846 — 2,853 1,930 853 — 2,783 1,979 913 2 2,894 Fee and other revenue - not in scope of ASC 606 (c)(d) 220 4 41 265 224 11 30 265 254 28 39 321 Total fee and other revenue $ 2,227 $ 850 $ 41 $ 3,118 $ 2,154 $ 864 $ 30 $ 3,048 $ 2,233 $ 941 $ 41 $ 3,215 (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) In the first quarter of 2019, we reclassified certain platform-related fees to clearing services fees from investment management and performance fees. Prior periods have been reclassified. (c) Primarily includes foreign exchange and other trading revenue, financing-related fees, asset servicing fees, investment and other income and net securities gains (losses), all of which are accounted for using other accounting guidance. (d) The Investment Management business includes income from consolidated investment management funds, net of noncontrolling interests, of $6 million in the second quarter of 2019 , $16 million in the first quarter of 2019 and $5 million in the second quarter of 2018 . IS - Investment Services segment. IM - Investment Management segment. Disaggregation of contract revenue by business segment (a) Year-to-date June 30, 2019 June 30, 2018 (in millions) IS IM Other Total IS IM Other Total Fee revenue - contract revenue: Investment services fees: Asset servicing fees $ 2,162 $ 40 $ — $ 2,202 $ 2,215 $ 46 $ 1 $ 2,262 Clearing services fees (b) 809 — (1 ) 808 824 — 1 825 Issuer services fees 542 — — 542 525 — — 525 Treasury services fees 272 1 — 273 278 1 — 279 Total investment services fees (b) 3,785 41 (1 ) 3,825 3,842 47 2 3,891 Investment management and performance fees (b) 8 1,666 — 1,674 9 1,835 — 1,844 Financing-related fees 33 — 1 34 32 — — 32 Distribution and servicing (27 ) 89 — 62 (28 ) 98 — 70 Investment and other income 138 (97 ) — 41 138 (101 ) 1 38 Total fee revenue - contract revenue 3,937 1,699 — 5,636 3,993 1,879 3 5,875 Fee and other revenue - not in scope of ASC 606 (c)(d) 444 15 71 530 490 74 46 610 Total fee and other revenue $ 4,381 $ 1,714 $ 71 $ 6,166 $ 4,483 $ 1,953 $ 49 $ 6,485 (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) In the first quarter of 2019, we reclassified certain platform-related fees to clearing services fees from investment management and performance fees. Prior periods have been reclassified. (c) Primarily includes foreign exchange and other trading revenue, financing-related fees, asset servicing fees, investment and other income and net securities gains (losses), all of which are accounted for using other accounting guidance. (d) The Investment Management business includes income from consolidated investment management funds, net of noncontrolling interests, of $22 million in the first six months of 2019 and $5 million in the first six months of 2018 . IS - Investment Services segment. IM - Investment Management segment. |
Net interest revenue (Tables)
Net interest revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 Year-to-date (in millions) June 30, 2019 March 31, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Interest revenue Deposits with the Federal Reserve and other central banks $ 113 $ 139 $ 136 $ 252 $ 262 Deposits with banks 64 63 56 127 98 Federal funds sold and securities purchased under resale agreements 568 474 230 1,042 400 Margin loans 119 135 128 254 243 Non-margin loans 365 355 345 720 650 Securities: Taxable 687 706 615 1,393 1,196 Exempt from federal income taxes 10 12 14 22 29 Total securities 697 718 629 1,415 1,225 Trading securities 39 36 29 75 56 Total interest revenue 1,965 1,920 1,553 3,885 2,934 Interest expense Deposits 432 391 173 823 290 Federal funds purchased and securities sold under repurchase agreements 372 331 158 703 265 Trading liabilities 11 7 7 18 16 Other borrowed funds 20 24 14 44 23 Commercial paper 18 8 21 26 33 Customer payables 69 70 45 139 76 Long-term debt 241 248 219 489 396 Total interest expense 1,163 1,079 637 2,242 1,099 Net interest revenue 802 841 916 1,643 1,835 Provision for credit losses (8 ) 7 (3 ) (1 ) (8 ) Net interest revenue after provision for credit losses $ 810 $ 834 $ 919 $ 1,644 $ 1,843 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 March 31, 2019 June 30, 2018 (in millions) Domestic pension benefits Foreign pension benefits Health care benefits Domestic pension benefits Foreign pension benefits Health care benefits Domestic pension benefits Foreign pension benefits Health care benefits Service cost $ — $ 3 $ — $ — $ 3 $ — $ — $ 7 $ — Interest cost 45 8 1 44 8 2 42 8 2 Expected return on assets (84 ) (12 ) (2 ) (84 ) (11 ) (2 ) (85 ) (14 ) (2 ) Other 13 1 — 13 — (1 ) 17 6 — Net periodic benefit (credit) cost $ (26 ) $ — $ (1 ) $ (27 ) $ — $ (1 ) $ (26 ) $ 7 $ — Net periodic benefit (credit) cost Year-to-date June 30, 2019 June 30, 2018 (in millions) Domestic pension benefits Foreign pension benefits Health care benefits Domestic pension benefits Foreign pension benefits Health care benefits Service cost $ — $ 6 $ — $ — $ 14 $ — Interest cost 89 16 3 85 16 4 Expected return on assets (168 ) (23 ) (4 ) (170 ) (29 ) (4 ) Other 26 1 (1 ) 34 12 (1 ) Net periodic benefit (credit) cost $ (53 ) $ — $ (2 ) $ (51 ) $ 13 $ (1 ) |
Variable interest entities an_2
Variable interest entities and securitization (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 balance sheet as of June 30, 2019 and Dec. 31, 2018 . 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 June 30, 2019 Dec. 31, 2018 (in millions) Investment Management funds Securitization Total consolidated investments Investment Management funds Securitization Total consolidated investments Trading assets $ 314 $ 400 $ 714 $ 243 $ 400 $ 643 Other assets 23 — 23 220 — 220 Total assets $ 337 (a) $ 400 $ 737 $ 463 (b) $ 400 $ 863 Other liabilities $ 6 $ 383 $ 389 $ 2 $ 371 $ 373 Total liabilities $ 6 (a) $ 383 $ 389 $ 2 (b) $ 371 $ 373 Nonredeemable noncontrolling interests $ 166 (a) $ — $ 166 $ 101 (b) $ — $ 101 (a) Includes voting model entities (“VMEs”) with assets of $74 million , liabilities of $4 million and nonredeemable noncontrolling interests of less than $1 million . (b) Includes VMEs with assets of $253 million , liabilities of $2 million and nonredeemable noncontrolling interests of less than $1 million . |
Schedule of Variable Interest Entities | As of June 30, 2019 and Dec. 31, 2018 , the following assets and liabilities related to the VIEs where BNY Mellon is not the primary beneficiary are included in our consolidated balance sheets 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 June 30, 2019 Dec. 31, 2018 (in millions) Assets Liabilities Maximum loss exposure Assets Liabilities Maximum loss exposure Securities - Available-for-sale (a) $ 214 $ — $ 214 $ 214 $ — $ 214 Other 2,496 500 2,996 2,450 479 2,929 (a) Includes investments in the Company’s sponsored CLOs. |
Preferred stock (Tables)
Preferred stock (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Preferred Stock Summary | The following table summarizes BNY Mellon’s preferred stock issued and outstanding at June 30, 2019 and Dec. 31, 2018 . Preferred stock summary (a) Total shares issued and outstanding Carrying value (b) (in millions) June 30, 2019 Dec. 31, 2018 June 30, 2019 Dec. 31, 2018 Per annum dividend rate 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. |
Summary of Preferred Dividends Paid | The table below presents the dividends paid on our preferred stock. Preferred dividends paid (dollars in millions, except per share amounts) Depositary shares per share 2Q19 1Q19 2Q18 YTD19 YTD18 Per share Total Per share Total Per share Total Per share Total Per share Total Series A 100 (a) $ 1,022.22 $ 5 $ 1,000.00 $ 5 $ 1,022.22 $ 5 $ 2,022.22 $ 10 $ 2,022.22 $ 10 Series C 4,000 1,300.00 7 1,300.00 8 1,300.00 7 2,600.00 15 2,600.00 15 Series D 100 2,250.00 11 N/A — 2,250.00 11 2,250.00 11 2,250.00 11 Series E 100 2,475.00 25 N/A — 2,475.00 25 2,475.00 25 2,475.00 25 Series F 100 N/A — 2,312.50 23 N/A — 2,312.50 23 2,312.50 23 Total $ 48 $ 36 $ 48 $ 84 $ 84 (a) Represents Normal Preferred Capital Securities. |
Other comprehensive income (l_2
Other comprehensive income (loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Components of Other Comprehensive Income (Loss) | Components of other comprehensive income (loss) Quarter ended June 30, 2019 March 31, 2019 June 30, 2018 (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) $ 29 $ (19 ) $ 10 $ 27 $ 2 $ 29 $ (302 ) $ (98 ) $ (400 ) Total foreign currency translation 29 (19 ) 10 27 2 29 (302 ) (98 ) (400 ) Unrealized gain (loss) on assets available-for-sale: Unrealized gain (loss) arising during period 384 (97 ) 287 322 (83 ) 239 (103 ) 39 (64 ) Reclassification adjustment (b) (7 ) 2 (5 ) (1 ) — (1 ) (1 ) 1 — Net unrealized gain (loss) on assets available-for-sale 377 (95 ) 282 321 (83 ) 238 (104 ) 40 (64 ) Defined benefit plans: Net (loss) gain arising during the period — — — (11 ) 2 (9 ) — — — Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost (b) 12 (2 ) 10 13 (3 ) 10 22 (6 ) 16 Total defined benefit plans 12 (2 ) 10 2 (1 ) 1 22 (6 ) 16 Unrealized gain (loss) on cash flow hedges: Unrealized hedge gain (loss) arising during period 2 (2 ) — 6 (4 ) 2 (17 ) 3 (14 ) Reclassification of net loss (gain) to net income: FX contracts - other revenue — — — — — — 1 — 1 FX contracts - staff expense — — — 1 2 3 (2 ) 1 (1 ) Total reclassifications to net income (b) — — — 1 2 3 (1 ) 1 — Net unrealized gain (loss) on cash flow hedges 2 (2 ) — 7 (2 ) 5 (18 ) 4 (14 ) Total other comprehensive income (loss) $ 420 $ (118 ) $ 302 $ 357 $ (84 ) $ 273 $ (402 ) $ (60 ) $ (462 ) (a) Includes the impact of hedges of net investments in foreign subsidiaries. See Note 18 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 18 for the location of the reclassification adjustment related to cash flow hedges on the consolidated income statement. Components of other comprehensive income (loss) Year-to-date June 30, 2019 June 30, 2018 (in millions) 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) $ 56 $ (17 ) $ 39 $ (101 ) $ (55 ) $ (156 ) Total foreign currency translation 56 (17 ) 39 (101 ) (55 ) (156 ) Unrealized gain (loss) on assets available-for-sale: Unrealized gain (loss) arising during period 706 (180 ) 526 (445 ) 106 (339 ) Reclassification adjustment (b) (8 ) 2 (6 ) 48 (11 ) 37 Net unrealized gain (loss) on assets available-for-sale 698 (178 ) 520 (397 ) 95 (302 ) Defined benefit plans: Net gain (loss) arising during the period (11 ) 2 (9 ) — — — Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost (b) 25 (5 ) 20 44 (11 ) 33 Total defined benefit plans 14 (3 ) 11 44 (11 ) 33 Unrealized gain (loss) on cash flow hedges: Unrealized hedge gain (loss) arising during period 8 (6 ) 2 (10 ) 2 (8 ) Reclassification of net loss (gain) to net income: FX contracts - other revenue — — — (3 ) 1 (2 ) FX contracts - staff expense 1 2 3 (8 ) 2 (6 ) Total reclassifications to net income (b) 1 2 3 (11 ) 3 (8 ) Net unrealized gain (loss) on cash flow hedges 9 (4 ) 5 (21 ) 5 (16 ) Total other comprehensive income (loss) $ 777 $ (202 ) $ 575 $ (475 ) $ 34 $ (441 ) (a) Includes the impact of hedges of net investments in foreign subsidiaries. See Note 18 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 18 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) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and Dec. 31, 2018 , 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. Assets measured at fair value on a recurring basis at June 30, 2019 Total carrying (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Available-for-sale securities: Agency RMBS $ — $ 26,204 $ — $ — $ 26,204 U.S. Treasury 14,197 — — — 14,197 Sovereign debt/sovereign guaranteed 7,818 4,524 — — 12,342 Agency commercial MBS — 9,678 — — 9,678 Supranational — 3,914 — — 3,914 CLOs — 3,649 — — 3,649 Foreign covered bonds — 3,398 — — 3,398 U.S. government agencies — 2,650 — — 2,650 Other ABS — 2,470 — — 2,470 Non-agency commercial MBS — 2,005 — — 2,005 State and political subdivisions — 1,280 — — 1,280 Non-agency RMBS (b) — 1,221 — — 1,221 Corporate bonds — 905 — — 905 Other debt securities — 1,680 — — 1,680 Total available-for-sale securities 22,015 63,578 — — 85,593 Trading assets: Debt instruments 1,529 2,260 — — 3,789 Equity instruments (c) 2,011 — — — 2,011 Derivative assets not designated as hedging: Interest rate 14 4,254 — (2,347 ) 1,921 Foreign exchange — 4,083 — (3,213 ) 870 Equity and other contracts — 46 — (8 ) 38 Total derivative assets not designated as hedging 14 8,383 — (5,568 ) 2,829 Total trading assets 3,554 10,643 — (5,568 ) 8,629 Other assets: Derivative assets designated as hedging: Foreign exchange — 156 — — 156 Total derivative assets designated as hedging — 156 — — 156 Other assets (d) 94 163 — — 257 Assets measured at NAV (d) 178 Subtotal assets of operations at fair value 25,663 74,540 — (5,568 ) 94,813 Percentage of assets of operations prior to netting 26 % 74 % — % Assets of consolidated investment management funds 305 32 — — 337 Total assets $ 25,968 $ 74,572 $ — $ (5,568 ) $ 95,150 Percentage of total assets prior to netting 26 % 74 % — % Liabilities measured at fair value on a recurring basis at June 30, 2019 Total carrying (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Trading liabilities: Debt instruments $ 1,173 $ 212 $ — $ — $ 1,385 Equity instruments 96 — — — 96 Derivative liabilities not designated as hedging: Interest rate 25 3,600 — (2,637 ) 988 Foreign exchange — 3,952 — (2,660 ) 1,292 Equity and other contracts 3 4 — — 7 Total derivative liabilities not designated as hedging 28 7,556 — (5,297 ) 2,287 Total trading liabilities 1,297 7,768 — (5,297 ) 3,768 Long-term debt (c) — 383 — — 383 Other liabilities – derivative liabilities designated as hedging: Interest rate — 311 — — 311 Foreign exchange — 24 — — 24 Total other liabilities – derivative liabilities designated as hedging — 335 — — 335 Subtotal liabilities of operations at fair value 1,297 8,486 — (5,297 ) 4,486 Percentage of liabilities of operations prior to netting 13 % 87 % — % Liabilities of consolidated investment management funds 1 5 — — 6 Total liabilities $ 1,298 $ 8,491 $ — $ (5,297 ) $ 4,492 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 $753 million in Level 2 that was included in the former Grantor Trust. (c) Includes certain interests in securitizations. (d) Includes seed capital, private equity investments and other assets. Assets measured at fair value on a recurring basis at Dec. 31, 2018 Total carrying value (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Available-for-sale securities: Agency RMBS $ — $ 25,308 $ — $ — $ 25,308 U.S. Treasury 20,076 — — — 20,076 Sovereign debt/sovereign guaranteed 6,613 4,137 — — 10,750 Agency commercial MBS — 9,691 — — 9,691 CLOs — 3,364 — — 3,364 Supranational — 2,984 — — 2,984 Foreign covered bonds — 2,878 — — 2,878 State and political subdivisions — 2,247 — — 2,247 Other ABS — 1,773 — — 1,773 U.S. government agencies — 1,657 — — 1,657 Non-agency commercial MBS — 1,464 — — 1,464 Non-agency RMBS (b) — 1,325 — — 1,325 Corporate bonds — 1,054 — — 1,054 Other debt securities — 1,238 — — 1,238 Total available-for-sale securities 26,689 59,120 — — 85,809 Trading assets: Debt instruments 801 2,594 — — 3,395 Equity instruments (c) 1,114 — — — 1,114 Derivative assets not designated as hedging: Interest rate 7 3,583 — (2,202 ) 1,388 Foreign exchange — 4,807 — (3,724 ) 1,083 Equity and other contracts 9 59 — (13 ) 55 Total derivative assets not designated as hedging 16 8,449 — (5,939 ) 2,526 Total trading assets 1,931 11,043 — (5,939 ) 7,035 Other assets : Derivative assets designated as hedging: Interest rate — 23 — — 23 Foreign exchange — 266 — — 266 Total derivative assets designated as hedging — 289 — — 289 Other assets (d) 68 170 — — 238 Assets measured at NAV (d) 215 Subtotal assets of operations at fair value 28,688 70,622 — (5,939 ) 93,586 Percentage of assets of operations prior to netting 29 % 71 % — % Assets of consolidated investment management funds 210 253 — — 463 Total assets $ 28,898 $ 70,875 $ — $ (5,939 ) $ 94,049 Percentage of total assets prior to netting 29 % 71 % — % Liabilities measured at fair value on a recurring basis at Dec. 31, 2018 Total carrying value (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Trading liabilities: Debt instruments $ 1,006 $ 118 $ — $ — $ 1,124 Equity instruments 75 — — — 75 Derivative liabilities not designated as hedging: Interest rate 12 3,104 — (2,508 ) 608 Foreign exchange — 5,215 — (3,626 ) 1,589 Equity and other contracts 1 118 — (36 ) 83 Total derivative liabilities not designated as hedging 13 8,437 — (6,170 ) 2,280 Total trading liabilities 1,094 8,555 — (6,170 ) 3,479 Long-term debt ( c ) — 371 — — 371 Other liabilities – derivative liabilities designated as hedging: Interest rate — 74 — — 74 Foreign exchange — 14 — — 14 Total other liabilities – derivative liabilities designated as hedging — 88 — — 88 Subtotal liabilities of operations at fair value 1,094 9,014 — (6,170 ) 3,938 Percentage of liabilities of operations prior to netting 11 % 89 % — % Liabilities of consolidated investment management funds 2 — — — 2 Total liabilities $ 1,096 $ 9,014 $ — $ (6,170 ) $ 3,940 Percentage of total liabilities prior to netting 11 % 89 % — % (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 $832 million in Level 2 that was included in the former Grantor Trust. (c) Includes certain interests in securitizations. (d) Includes seed capital, private equity investments and other assets. |
Details Of Certain Items Measured At Fair Value on Recurring Basis | Details of certain available-for-sale securities measured at fair value on a recurring basis June 30, 2019 Dec. 31, 2018 Total carrying value Ratings (a) Total carrying value Ratings (a) AAA/ AA- A+/ A- BBB+/ BBB- BB+ and lower AAA/ AA- A+/ A- BBB+/ BBB- BB+ and lower (dollars in millions) (b) (b) Non-agency RMBS (c) , originated in: 2007-2019 $ 311 23 % 2 % 3 % 72 % $ 315 15 % 2 % 3 % 80 % 2006 330 — 19 1 80 363 — 19 — 81 2005 356 8 1 8 83 396 9 1 7 83 2004 and earlier 224 16 23 11 50 251 16 24 11 49 Total non-agency RMBS $ 1,221 11 % 10 % 5 % 74 % $ 1,325 9 % 11 % 5 % 75 % Non-agency commercial MBS originated in 2009-2019 $ 2,005 98 % 2 % — % — % $ 1,464 96 % 4 % — % — % Foreign covered bonds: Canada $ 1,639 100 % — % — % — % $ 1,524 100 % — % — % — % United Kingdom 798 100 — — — 529 100 — — — Australia 414 100 — — — 333 100 — — — Sweden 274 100 — — — 187 100 — — — Other 273 100 — — — 305 100 — — — Total foreign covered bonds $ 3,398 100 % — % — % — % $ 2,878 100 % — % — % — % Sovereign debt/sovereign guaranteed: United Kingdom $ 3,133 100 % — % — % — % $ 2,153 100 % — % — % — % Germany 2,198 100 — — — 1,826 100 — — — France 1,424 100 — — — 1,548 100 — — — Spain 1,309 — 2 98 — 1,365 — — 100 — Italy 1,302 — — 100 — 939 — — 100 — Netherlands 811 100 — — — 875 100 — — — Hong Kong 504 100 — — — 450 100 — — — Canada 485 100 — — — 378 100 — — — Singapore 443 100 — — — 165 100 — — — Ireland 368 — 100 — — 625 — 100 — — Other (d) 365 68 1 — 31 426 75 — — 25 Total sovereign debt/sovereign guaranteed $ 12,342 75 % 3 % 21 % 1 % $ 10,750 72 % 6 % 21 % 1 % (a) Represents ratings by S&P or the equivalent. (b) At June 30, 2019 and Dec. 31, 2018 , 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 $753 million at June 30, 2019 and $832 million at Dec. 31, 2018 that were included in the former Grantor Trust. (d) Includes non-investment grade sovereign debt/sovereign guaranteed securities related to Brazil of $113 million at June 30, 2019 and $107 million at Dec. 31, 2018 . |
Assets Measured at Fair Value on Nonrecurring Basis | The following table presents the financial instruments carried on the consolidated balance sheet by caption and level in the fair value hierarchy as of June 30, 2019 and Dec. 31, 2018 , for which a nonrecurring change in fair value has been recorded in the respective year. Assets measured at fair value on a nonrecurring basis June 30, 2019 Dec. 31, 2018 Total carrying value Total carrying value (in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Loans (a) $ — $ 58 $ 4 $ 62 $ — $ 64 $ 4 $ 68 Other assets (b) — 63 — 63 — 57 — 57 Total assets at fair value on a nonrecurring basis $ — $ 121 $ 4 $ 125 $ — $ 121 $ 4 $ 125 (a) The fair value of these loans decreased less than $1 million in the quarters ended June 30, 2019 and Dec. 31, 2018 , based on the fair value of the underlying collateral, as required by guidance in ASC 310, Receivables, with an offset to the allowance for credit losses. (b) Includes non-readily marketable equity securities carried at cost with upward or downward adjustments and 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 June 30, 2019 and Dec. 31, 2018 , by caption on the consolidated balance sheet and by the valuation hierarchy. Summary of financial instruments June 30, 2019 (in millions) Level 1 Level 2 Level 3 Total Carrying Assets: Interest-bearing deposits with the Federal Reserve and other central banks $ — $ 69,700 $ — $ 69,700 $ 69,700 Interest-bearing deposits with banks — 15,515 — 15,515 15,491 Federal funds sold and securities purchased under resale agreements — 61,201 — 61,201 61,201 Securities held-to-maturity 5,344 29,351 — 34,695 34,549 Loans (a) — 51,425 — 51,425 51,025 Other financial assets 5,556 1,316 — 6,872 6,872 Total $ 10,900 $ 228,508 $ — $ 239,408 $ 238,838 Liabilities: Noninterest-bearing deposits $ — $ 58,255 $ — $ 58,255 $ 58,255 Interest-bearing deposits — 193,698 — 193,698 194,622 Federal funds purchased and securities sold under repurchase agreements — 11,757 — 11,757 11,757 Payables to customers and broker-dealers — 18,946 — 18,946 18,946 Commercial paper — 8,894 — 8,894 8,894 Borrowings — 2,283 — 2,283 2,283 Long-term debt — 28,365 — 28,365 27,820 Total $ — $ 322,198 $ — $ 322,198 $ 322,577 (a) Does not include the leasing portfolio. Summary of financial instruments Dec. 31, 2018 (in millions) Level 1 Level 2 Level 3 Total estimated Carrying Assets: Interest-bearing deposits with the Federal Reserve and other central banks $ — $ 67,988 $ — $ 67,988 $ 67,988 Interest-bearing deposits with banks — 14,168 — 14,168 14,148 Federal funds sold and securities purchased under resale agreements — 46,795 — 46,795 46,795 Securities held-to-maturity 5,512 27,790 — 33,302 33,982 Loans (a) — 55,142 — 55,142 55,161 Other financial assets 5,864 1,383 — 7,247 7,247 Total $ 11,376 $ 213,266 $ — $ 224,642 $ 225,321 Liabilities: Noninterest-bearing deposits $ — $ 70,783 $ — $ 70,783 $ 70,783 Interest-bearing deposits — 165,914 — 165,914 167,995 Federal funds purchased and securities sold under repurchase agreements — 14,243 — 14,243 14,243 Payables to customers and broker-dealers — 19,731 — 19,731 19,731 Commercial paper — 1,939 — 1,939 1,939 Borrowings — 3,584 — 3,584 3,584 Long-term debt — 28,347 — 28,347 28,792 Total $ — $ 304,541 $ — $ 304,541 $ 307,067 (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 (a) (in millions) Gain (Loss) June 30, 2019 Securities available-for-sale (b) $ 18,347 $ 18,283 $ — $ (311 ) Long-term debt 15,344 15,050 — — Dec. 31, 2018 Securities available-for-sale (b) $ 19,349 $ 19,437 $ 24 $ (74 ) Long-term debt 16,147 16,600 — — (a) Unrealized gain/loss amounts reflect the fact that certain of the derivatives are cleared and settled through central clearing counterparties where cash collateral received and paid is deemed a settlement of the derivative. (b) Includes foreign exchange fair value hedges with carrying values of $145 million and $148 million , notional amounts of $145 million and $147 million and an unrealized gain of less than $1 million and $1 million at June 30, 2019 and Dec. 31, 2018 , respectively. |
Fair value option (Tables)
Fair value option (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 Dec. 31, 2018 (in millions) Assets of consolidated investment management funds: Trading assets $ 314 $ 243 Other assets 23 220 Total assets of consolidated investment management funds $ 337 $ 463 Liabilities of consolidated investment management funds: Other liabilities $ 6 $ 2 Total liabilities of consolidated investment management funds $ 6 $ 2 The following table presents the changes 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 (a) (in millions) 2Q19 1Q19 2Q18 YTD19 YTD18 Long-term debt $ (7 ) $ (5 ) $ — $ (12 ) $ 4 (a) The changes in fair value are approximately offset by an economic hedge included in foreign exchange and other trading revenue. |
Derivative instruments (Tables)
Derivative instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 consolidated income statement. Income statement impact of fair value and cash flow hedges (in millions) Location of gains (losses) 2Q19 1Q19 2Q18 YTD19 YTD18 Interest rate fair value hedges of available-for-sale securities Derivative Interest revenue $ (486 ) $ (383 ) $ 136 $ (869 ) $ 533 Hedged item Interest revenue 480 376 (133 ) 856 (516 ) Interest rate fair value hedges of long-term debt Derivative Interest expense 300 185 (131 ) 485 (509 ) Hedged item Interest expense (298 ) (184 ) 129 (482 ) 506 Foreign exchange fair value hedges of available-for-sale securities Derivative (a) Other revenue (5 ) 6 — 1 — Hedged item Other revenue 5 (5 ) — — — Cash flow hedges of forecasted FX exposures (Loss) gain reclassified from OCI into income Other revenue — — (1 ) — 3 (Loss) gain reclassified from OCI into income Staff expense — (1 ) 2 (1 ) 8 (Loss) gain recognized in the consolidated income statement due to fair value and cash flow hedging relationships (b) $ (4 ) $ (6 ) $ 2 $ (10 ) $ 25 (a) Includes a de minimis gain in the second quarter of 2019 and a gain of $1 million in the first quarter of 2019 and first six months of 2019 associated with the amortization of the excluded component. At June 30, 2019 and Dec. 31, 2018 , the remaining accumulated OCI balance associated with the excluded component was de minimis. (b) Includes a (loss) on cash flow hedges of long-term debt of less than $(1) million in the second quarter of 2019 , first quarter of 2019 and first six months of 2019 . |
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 consolidated income statement. Impact of derivative instruments used in net investment hedging relationships in the income statement (in millions) Gain or (loss) recognized in accumulated OCI on derivatives Gain or (loss) reclassified from accumulated OCI into income Derivatives in net investment hedging relationships Location of gain or (loss) reclassified from accumulated OCI into income 2Q19 1Q19 2Q18 YTD19 YTD18 2Q19 1Q19 2Q18 YTD19 YTD18 FX contracts $ 76 $ (6 ) $ 429 $ 70 $ 271 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 Carrying amount of hedged asset or liability Hedge accounting basis adjustment increase (decrease) (a) (in millions) June 30, 2019 Dec. 31, 2018 June 30, 2019 Dec. 31, 2018 Available-for-sale securities (b) $ 18,202 $ 19,201 $ 692 $ (125 ) Long-term debt $ 14,344 $ 16,147 $ 72 $ (453 ) (a) Includes $38 million and $- million of basis adjustment decreases on discontinued hedges associated with available-for-sale securities at June 30, 2019 and Dec. 31, 2018 , respectively, and $242 million and $284 million of basis adjustment decreases on discontinued hedges associated with long-term debt at June 30, 2019 and Dec. 31, 2018 , respectively. (b) Excludes hedged items where only foreign currency risk is the designated hedged risk, as the basis adjustments related to foreign currency hedges will not reverse through the consolidated income statement in future periods. The carrying amount excluded for available-for-sale securities was $145 million at June 30, 2019 and $148 million at Dec. 31, 2018 . |
Impact of Derivative Instruments on the Balance Sheet | The following table summarizes the notional amount and credit exposure of our total derivative portfolio at June 30, 2019 and Dec. 31, 2018 . Impact of derivative instruments on the balance sheet Notional value Asset derivatives fair value Liability derivatives fair value June 30, 2019 Dec. 31, 2018 June 30, 2019 Dec. 31, 2018 June 30, 2019 Dec. 31, 2018 (in millions) Derivatives designated as hedging instruments: (a)(b) Interest rate contracts $ 33,188 $ 35,890 $ — $ 23 $ 311 $ 74 Foreign exchange contracts 7,693 6,330 156 266 24 14 Total derivatives designated as hedging instruments $ 156 $ 289 $ 335 $ 88 Derivatives not designated as hedging instruments: (b)(c) Interest rate contracts $ 302,029 $ 248,534 $ 4,268 $ 3,590 $ 3,625 $ 3,116 Foreign exchange contracts 850,236 831,730 4,083 4,807 3,952 5,215 Equity contracts 1,573 927 46 68 4 118 Credit contracts 165 150 — — 3 1 Total derivatives not designated as hedging instruments $ 8,397 $ 8,465 $ 7,584 $ 8,450 Total derivatives fair value (d) $ 8,553 $ 8,754 $ 7,919 $ 8,538 Effect of master netting agreements (e) (5,568 ) (5,939 ) (5,297 ) (6,170 ) Fair value after effect of master netting agreements $ 2,985 $ 2,815 $ 2,622 $ 2,368 (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 consolidated balance sheet. (b) For derivative transactions settled at clearing organizations, cash collateral exchanged is deemed a settlement of the derivative each day. The settlement reduces the gross fair value of derivative assets and liabilities and a corresponding decrease in the effect of master netting agreements, with no impact to the consolidated balance sheet. (c) 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 consolidated balance sheet. (d) Fair values are on a gross basis, before consideration of master netting agreements, as required by ASC 815, Derivatives and Hedging. (e) Effect of master netting agreements includes cash collateral received and paid of $836 million and $565 million , respectively, at June 30, 2019 , and $809 million and $1,040 million , respectively, at Dec. 31, 2018 . |
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) 2Q19 1Q19 2Q18 YTD19 YTD18 Foreign exchange $ 150 $ 160 $ 171 $ 310 $ 354 Other trading revenue 16 10 16 26 42 Total foreign exchange and other trading revenue $ 166 $ 170 $ 187 $ 336 $ 396 |
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 for three key ratings triggers. Potential close-out exposures (fair value) (a) (in millions) June 30, 2019 Dec. 31, 2018 If The Bank of New York Mellon’s rating changed to: (b) A3/A- $ 8 $ 15 Baa2/BBB $ 358 $ 116 Ba1/BB+ $ 1,493 $ 1,041 (a) The amounts represent potential total close-out values if The Bank of New York Mellon’s long-term issuer rating were to immediately drop to the indicated levels, and do not reflect collateral posted. (b) Represents rating by Moody’s/S&P. The following table shows the aggregate fair value of OTC derivative contracts in net liability positions that contained credit-risk contingent features and the value of collateral that has been posted. June 30, 2019 Dec. 31, 2018 (in millions) Aggregate fair value of OTC derivatives in net liability positions (a) $ 3,296 $ 2,877 Collateral posted $ 3,443 $ 2,801 (a) Before consideration of cash collateral. |
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 June 30, 2019 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 $ 2,963 $ 2,347 $ 616 $ 181 $ — $ 435 Foreign exchange contracts 3,729 3,213 516 10 — 506 Equity and other contracts 33 8 25 — — 25 Total derivatives subject to netting arrangements 6,725 5,568 1,157 191 — 966 Total derivatives not subject to netting arrangements 1,828 — 1,828 — — 1,828 Total derivatives 8,553 5,568 2,985 191 — 2,794 Reverse repurchase agreements 127,691 78,433 (b) 49,258 49,245 — 13 Securities borrowing 11,943 — 11,943 11,618 — 325 Total $ 148,187 $ 84,001 $ 64,186 $ 61,054 $ — $ 3,132 (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 FICC, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. Offsetting of derivative assets and financial assets at Dec. 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 $ 2,654 $ 2,202 $ 452 $ 133 $ — $ 319 Foreign exchange contracts 4,409 3,724 685 70 — 615 Equity and other contracts 38 13 25 — — 25 Total derivatives subject to netting arrangements 7,101 5,939 1,162 203 — 959 Total derivatives not subject to netting arrangements 1,653 — 1,653 — — 1,653 Total derivatives 8,754 5,939 2,815 203 — 2,612 Reverse repurchase agreements 112,245 76,040 (b) 36,205 36,205 — — Securities borrowing 10,588 — 10,588 10,286 — 302 Total $ 131,587 $ 81,979 $ 49,608 $ 46,694 $ — $ 2,914 (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 FICC, 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 June 30, 2019 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 $ 3,885 $ 2,637 $ 1,248 $ 1,187 $ — $ 61 Foreign exchange contracts 3,475 2,660 815 139 — 676 Equity and other contracts 4 — 4 — — 4 Total derivatives subject to netting arrangements 7,364 5,297 2,067 1,326 — 741 Total derivatives not subject to netting arrangements 555 — 555 — — 555 Total derivatives 7,919 5,297 2,622 1,326 — 1,296 Repurchase agreements 87,308 78,433 (b) 8,875 8,875 — — Securities lending 871 — 871 840 — 31 Total $ 96,098 $ 83,730 $ 12,368 $ 11,041 $ — $ 1,327 (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 FICC, 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 Dec. 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 $ 3,144 $ 2,508 $ 636 $ 547 $ — $ 89 Foreign exchange contracts 4,747 3,626 1,121 187 — 934 Equity and other contracts 75 36 39 37 — 2 Total derivatives subject to netting arrangements 7,966 6,170 1,796 771 — 1,025 Total derivatives not subject to netting arrangements 572 — 572 — — 572 Total derivatives 8,538 6,170 2,368 771 — 1,597 Repurchase agreements 84,665 76,040 (b) 8,625 8,625 — — Securities lending 997 — 997 937 — 60 Total $ 94,200 $ 82,210 $ 11,990 $ 10,333 $ — $ 1,657 (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 FICC, 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 June 30, 2019 Dec. 31, 2018 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 $ 80,367 $ — $ — $ 80,367 $ 76,822 $ — $ — $ 76,822 U.S. government agencies 826 — — 826 759 — — 759 Agency RMBS 2,205 — — 2,205 3,184 — 4 3,188 Corporate bonds 335 — 1,485 1,820 416 — 1,413 1,829 Other debt securities 284 — 931 1,215 271 — 1,106 1,377 Equity securities 241 — 634 875 163 — 527 690 Total $ 84,258 $ — $ 3,050 $ 87,308 $ 81,615 $ — $ 3,050 $ 84,665 Securities lending: U.S. government agencies $ 30 $ — $ — $ 30 $ 7 $ — $ — $ 7 Other debt securities 200 — — 200 294 — — 294 Equity securities 641 — — 641 696 — — 696 Total $ 871 $ — $ — $ 871 $ 997 $ — $ — $ 997 Total borrowings $ 85,129 $ — $ 3,050 $ 88,179 $ 82,612 $ — $ 3,050 $ 85,662 |
Commitments and contingent li_2
Commitments and contingent liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 Dec. 31, 2018 (in millions) Lending commitments $ 51,191 $ 50,631 Standby letters of credit (a) 2,465 2,817 Commercial letters of credit 60 165 Securities lending indemnifications (b)(c) 406,180 401,504 (a) Net of participations totaling $162 million at June 30, 2019 and $163 million at Dec. 31, 2018 . (b) Excludes the indemnification for securities for which BNY Mellon acts as an agent on behalf of CIBC Mellon clients, which totaled $62 billion at June 30, 2019 and $56 billion at Dec. 31, 2018 . (c) Includes cash collateral, invested in indemnified repurchase agreements, held by us as securities lending agent of $45 billion at June 30, 2019 and $35 billion at Dec. 31, 2018 . |
Standby Letters of Credits by Investment Grade | The table below shows SBLCs by investment grade: Standby letters of credit June 30, 2019 Dec. 31, 2018 Investment grade 90 % 89 % Non-investment grade 10 % 11 % |
Summary of Credit Exposure in the Financial Institutions and Commercial Portfolios | The tables below present our credit exposure in the financial institutions and commercial portfolios. Financial institutions portfolio exposure (in billions) June 30, 2019 Loans Unfunded commitments Total exposure Securities industry $ 2.5 $ 24.3 $ 26.8 Asset managers 1.4 6.7 8.1 Banks 6.5 1.0 7.5 Insurance 0.1 2.4 2.5 Government 0.1 0.3 0.4 Other 0.9 0.9 1.8 Total $ 11.5 $ 35.6 $ 47.1 Commercial portfolio exposure (in billions) June 30, 2019 Loans Unfunded commitments Total exposure Manufacturing $ 0.7 $ 4.7 $ 5.4 Services and other 0.7 3.9 4.6 Energy and utilities 0.3 3.8 4.1 Media and telecom — 1.2 1.2 Total $ 1.7 $ 13.6 $ 15.3 |
Lines of business (Tables)
Lines of business (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 Investment Investment Other Consolidated (dollars in millions) Total fee and other revenue $ 2,227 $ 850 (a) $ 41 $ 3,118 (a) Net interest revenue (expense) 775 67 (40 ) 802 Total revenue 3,002 917 (a) 1 3,920 (a) Provision for credit losses (4 ) (2 ) (2 ) (8 ) Noninterest expense 1,954 654 39 2,647 Income (loss) before taxes $ 1,052 $ 265 (a) $ (36 ) $ 1,281 (a) Pre-tax operating margin (b) 35 % 29 % N/M 33 % Average assets $ 264,639 $ 30,709 $ 47,036 $ 342,384 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of $6 million , representing $10 million of income and noncontrolling interests of $4 million . Income before taxes is net of noncontrolling interests of $4 million . (b) Income before taxes divided by total revenue. N/M - Not meaningful. For the quarter ended March 31, 2019 Investment Investment Other Consolidated (dollars in millions) Total fee and other revenue $ 2,154 $ 864 (a) $ 30 $ 3,048 (a) Net interest revenue (expense) 796 75 (30 ) 841 Total revenue 2,950 939 (a) — 3,889 (a) Provision for credit losses 8 1 (2 ) 7 Noninterest expense 1,969 669 61 2,699 Income (loss) before taxes $ 973 $ 269 (a) $ (59 ) $ 1,183 (a) Pre-tax operating margin (b) 33 % 29 % N/M 31 % Average assets $ 255,891 $ 31,857 $ 48,417 $ 336,165 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of $16 million , representing $26 million of income and noncontrolling interests of $10 million . Income before taxes is net of noncontrolling interests of $10 million . (b) Income before taxes divided by total revenue. N/M - Not meaningful. For the quarter ended June 30, 2018 Investment Investment Other Consolidated (dollars in millions) Total fee and other revenue $ 2,233 $ 941 (a) $ 41 $ 3,215 (a) Net interest revenue (expense) 874 77 (35 ) 916 Total revenue 3,107 1,018 (a) 6 4,131 (a) Provision for credit losses 1 2 (6 ) (3 ) Noninterest expense 1,967 697 81 2,745 (b) Income (loss) before taxes $ 1,139 $ 319 (a) $ (69 ) $ 1,389 (a)(b) Pre-tax operating margin (c) 37 % 31 % N/M 34 % Average assets $ 264,387 $ 31,504 $ 50,437 $ 346,328 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of $5 million , representing $12 million of income and noncontrolling interests of $7 million . Income before taxes is net of noncontrolling interests of $7 million . (b) Noninterest expense includes a loss 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 six months ended June 30, 2019 Investment Investment Other Consolidated (dollars in millions) Total fee and other revenue $ 4,381 $ 1,714 (a) $ 71 $ 6,166 (a) Net interest revenue (expense) 1,571 142 (70 ) 1,643 Total revenue 5,952 1,856 (a) 1 7,809 (a) Provision for credit losses 4 (1 ) (4 ) (1 ) Noninterest expense 3,923 1,323 100 5,346 Income (loss) before taxes $ 2,025 $ 534 (a) $ (95 ) $ 2,464 (a) Pre-tax operating margin (b) 34 % 29 % N/M 32 % Average assets $ 260,290 $ 30,926 $ 48,076 $ 339,292 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of $22 million , representing $36 million of income and noncontrolling interests of $14 million . Income before taxes is net of noncontrolling interests of $14 million . (b) Income before taxes divided by total revenue. N/M - Not meaningful. For the six months ended June 30, 2018 Investment Investment Other Consolidated (dollars in millions) Total fee and other revenue $ 4,483 $ 1,953 (a) $ 49 $ 6,485 (a) Net interest revenue (expense) 1,718 153 (36 ) 1,835 Total revenue 6,201 2,106 (a) 13 8,320 (a) Provision for credit losses (6 ) 4 (6 ) (8 ) Noninterest expense 3,916 1,402 168 5,486 Income (loss) before taxes $ 2,291 $ 700 (a) $ (149 ) $ 2,842 (a) Pre-tax operating margin (b) 37 % 33 % N/M 34 % Average assets $ 271,203 $ 31,732 $ 49,284 $ 352,219 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of $5 million , representing $1 million of income and a loss attributable to noncontrolling interests of $4 million . Income before taxes is net of a loss attributable to noncontrolling interests of $4 million . (b) Income before taxes divided by total revenue. N/M - Not meaningful. |
Supplemental information to t_2
Supplemental information to the Consolidated Statement of Cash Flows (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 Six months ended June 30, (in millions) 2019 2018 Transfers from loans to other assets for other real estate owned $ — $ 2 Change in assets of consolidated investment management funds 76 303 Change in liabilities of consolidated investment management funds 4 1 Change in nonredeemable noncontrolling interests of consolidated investment management funds 65 264 Securities purchased not settled 1,113 400 Securities matured not settled 10 25 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 financing lease obligations 14 15 Premises and equipment/operating lease obligations 1,272 (a) — (a) Includes $1,244 million related to the adoption of ASU 2016-02, Leases, and $28 million related to new or modified leases. |
Accounting changes and new ac_2
Accounting changes and new accounting guidance - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right-of-use asset | $ 1,160 | ||
Operating lease, liability | $ 1,358 | ||
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right-of-use asset | $ 1,300 | ||
Operating lease, liability | 1,500 | ||
Retained earnings | ASU 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adjustment for the cumulative effect of applying the ASU | 90 | $ 90 | |
Accumulated other comprehensive (loss), net of tax | ASU 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adjustment for the cumulative effect of applying the ASU | $ (90) | $ (90) |
Acquisitions and dispositions (
Acquisitions and dispositions (Details) - USD ($) $ in Millions | Jun. 29, 2018 | Jan. 02, 2018 | Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Business Acquisition [Line Items] | |||||
Contingent payments | $ 2 | $ 2 | |||
Potential obligation to pay additional consideration, lower range | 4 | 4 | |||
Potential obligation to pay additional consideration, upper range | $ 17 | $ 17 | |||
Contingent consideration payment period | 3 years | ||||
Goodwill written off | $ 65 | ||||
CenterSquare | |||||
Business Acquisition [Line Items] | |||||
Assets under management divested | $ 10,000 | ||||
Goodwill written off | $ 52 | ||||
Amherst Capital Management LLC | |||||
Business Acquisition [Line Items] | |||||
Goodwill written off | $ 13 |
Securities - Amortized Cost, Gr
Securities - Amortized Cost, Gross Unrealized Gains and Losses and Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale: | ||
Amortized cost | $ 84,472 | $ 86,167 |
Gross unrealized, Gain | 1,377 | 595 |
Gross unrealized, Loss | 256 | 953 |
Available-for-sale | 85,593 | 85,809 |
Held-to-maturity: | ||
Amortized cost | 34,549 | 33,982 |
Gross unrealized, Gains | 286 | 67 |
Gross unrealized, Losses | 140 | 747 |
Securities held-to-maturity | 34,695 | 33,302 |
Amortized cost, Total | 119,021 | 120,149 |
Gross unrealized, Gain, Total | 1,663 | 662 |
Gross unrealized, Losses, Total | 396 | 1,700 |
Fair value, Total | 120,288 | 119,111 |
AOCI, transfers from AFS to HTM Securities, gross unrealized gains | 36 | 39 |
AOCI, transfers from AFS to HTM Securities, gross unrealized losses | 76 | 87 |
Agency RMBS | ||
Available-for-sale: | ||
Amortized cost | 26,225 | 25,594 |
Gross unrealized, Gain | 145 | 83 |
Gross unrealized, Loss | 166 | 369 |
Available-for-sale | 26,204 | 25,308 |
Held-to-maturity: | ||
Amortized cost | 26,591 | 25,507 |
Gross unrealized, Gains | 195 | 32 |
Gross unrealized, Losses | 127 | 632 |
Securities held-to-maturity | 26,659 | 24,907 |
U.S. Treasury | ||
Available-for-sale: | ||
Amortized cost | 13,805 | 20,190 |
Gross unrealized, Gain | 424 | 96 |
Gross unrealized, Loss | 32 | 210 |
Available-for-sale | 14,197 | 20,076 |
Held-to-maturity: | ||
Amortized cost | 4,467 | 4,727 |
Gross unrealized, Gains | 24 | 3 |
Gross unrealized, Losses | 9 | 77 |
Securities held-to-maturity | 4,482 | 4,653 |
Sovereign debt/sovereign guaranteed | ||
Available-for-sale: | ||
Amortized cost | 12,184 | 10,663 |
Gross unrealized, Gain | 161 | 108 |
Gross unrealized, Loss | 3 | 21 |
Available-for-sale | 12,342 | 10,750 |
Held-to-maturity: | ||
Amortized cost | 823 | 833 |
Gross unrealized, Gains | 39 | 26 |
Gross unrealized, Losses | 0 | 0 |
Securities held-to-maturity | 862 | 859 |
Agency commercial MBS | ||
Available-for-sale: | ||
Amortized cost | 9,499 | 9,836 |
Gross unrealized, Gain | 194 | 16 |
Gross unrealized, Loss | 15 | 161 |
Available-for-sale | 9,678 | 9,691 |
Held-to-maturity: | ||
Amortized cost | 1,179 | 1,195 |
Gross unrealized, Gains | 22 | 0 |
Gross unrealized, Losses | 1 | 26 |
Securities held-to-maturity | 1,200 | 1,169 |
CLOs | ||
Available-for-sale: | ||
Amortized cost | 3,665 | 3,410 |
Gross unrealized, Gain | 1 | 0 |
Gross unrealized, Loss | 17 | 46 |
Available-for-sale | 3,649 | 3,364 |
Supranational | ||
Available-for-sale: | ||
Amortized cost | 3,878 | 2,985 |
Gross unrealized, Gain | 38 | 7 |
Gross unrealized, Loss | 2 | 8 |
Available-for-sale | 3,914 | 2,984 |
Held-to-maturity: | ||
Amortized cost | 25 | 26 |
Gross unrealized, Gains | 0 | 1 |
Gross unrealized, Losses | 0 | 0 |
Securities held-to-maturity | 25 | 27 |
Foreign covered bonds | ||
Available-for-sale: | ||
Amortized cost | 3,385 | 2,890 |
Gross unrealized, Gain | 17 | 7 |
Gross unrealized, Loss | 4 | 19 |
Available-for-sale | 3,398 | 2,878 |
Held-to-maturity: | ||
Amortized cost | 80 | 80 |
Gross unrealized, Gains | 1 | 1 |
Gross unrealized, Losses | 0 | 0 |
Securities held-to-maturity | 81 | 81 |
State and political subdivisions | ||
Available-for-sale: | ||
Amortized cost | 1,253 | 2,251 |
Gross unrealized, Gain | 28 | 18 |
Gross unrealized, Loss | 1 | 22 |
Available-for-sale | 1,280 | 2,247 |
Held-to-maturity: | ||
Amortized cost | 17 | 17 |
Gross unrealized, Gains | 0 | 0 |
Gross unrealized, Losses | 0 | 0 |
Securities held-to-maturity | 17 | 17 |
Other ABS | ||
Available-for-sale: | ||
Amortized cost | 2,466 | 1,776 |
Gross unrealized, Gain | 8 | 1 |
Gross unrealized, Loss | 4 | 4 |
Available-for-sale | 2,470 | 1,773 |
U.S. government agencies | ||
Available-for-sale: | ||
Amortized cost | 2,585 | 1,676 |
Gross unrealized, Gain | 65 | 5 |
Gross unrealized, Loss | 0 | 24 |
Available-for-sale | 2,650 | 1,657 |
Held-to-maturity: | ||
Amortized cost | 1,276 | 1,497 |
Gross unrealized, Gains | 1 | 0 |
Gross unrealized, Losses | 1 | 10 |
Securities held-to-maturity | 1,276 | 1,487 |
Non-agency commercial MBS | ||
Available-for-sale: | ||
Amortized cost | 1,968 | 1,491 |
Gross unrealized, Gain | 38 | 1 |
Gross unrealized, Loss | 1 | 28 |
Available-for-sale | 2,005 | 1,464 |
Non-agency RMBS | ||
Available-for-sale: | ||
Amortized cost | 999 | 1,095 |
Gross unrealized, Gain | 230 | 241 |
Gross unrealized, Loss | 8 | 11 |
Available-for-sale | 1,221 | 1,325 |
Held-to-maturity: | ||
Amortized cost | 91 | 100 |
Gross unrealized, Gains | 4 | 4 |
Gross unrealized, Losses | 2 | 2 |
Securities held-to-maturity | 93 | 102 |
Non-agency RMBS | Grantor Trust | ||
Available-for-sale: | ||
Available-for-sale | 753 | 832 |
Corporate bonds | ||
Available-for-sale: | ||
Amortized cost | 889 | 1,074 |
Gross unrealized, Gain | 19 | 6 |
Gross unrealized, Loss | 3 | 26 |
Available-for-sale | 905 | 1,054 |
Other debt securities | ||
Available-for-sale: | ||
Amortized cost | 1,671 | 1,236 |
Gross unrealized, Gain | 9 | 6 |
Gross unrealized, Loss | 0 | 4 |
Available-for-sale | $ 1,680 | $ 1,238 |
Securities - Net Securities Gai
Securities - Net Securities Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Securities [Abstract] | |||||
Realized gross gains | $ 12 | $ 5 | $ 2 | $ 17 | $ 4 |
Realized gross losses | (5) | (4) | (1) | (9) | (52) |
Recognized gross impairments | 0 | 0 | 0 | 0 | 0 |
Total net securities gains (losses) | $ 7 | $ 1 | $ 1 | $ 8 | $ (48) |
Securities - Pre-Tax Net Securi
Securities - Pre-Tax Net Securities Gains (Losses) by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Total net securities gains (losses) | $ 7 | $ 1 | $ 1 | $ 8 | $ (48) |
U.S. Treasury | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Total net securities gains (losses) | 3 | 1 | 0 | 4 | (4) |
Sovereign debt/sovereign guaranteed | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Total net securities gains (losses) | 2 | 1 | 0 | 3 | 0 |
State and political subdivisions | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Total net securities gains (losses) | 2 | 0 | 1 | 2 | (1) |
Agency RMBS | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Total net securities gains (losses) | 0 | 0 | 0 | 0 | (42) |
Other | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Total net securities gains (losses) | $ 0 | $ (1) | $ 0 | $ (1) | $ (1) |
Securities - Narrative (Details
Securities - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Securities [Abstract] | ||
AOCI, transfers from AFS to HTM Securities, gross unrealized losses | $ 76 | $ 87 |
Securities - Fair Value of Inve
Securities - Fair Value of Investments with Continuous Unrealized Loss Position (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale: | ||
Less than 12 months, Fair value | $ 17,424,000,000 | $ 29,115,000,000 |
Less than 12 months, Unrealized losses | 50,000,000 | 215,000,000 |
12 months or more, Fair value | 14,730,000,000 | 23,608,000,000 |
12 months or more, Unrealized losses | 206,000,000 | 738,000,000 |
Total, Fair value | 32,154,000,000 | 52,723,000,000 |
Total, Unrealized losses | 256,000,000 | 953,000,000 |
Held-to-maturity: | ||
Less than 12 months, Fair value | 680,000,000 | 5,258,000,000 |
Less than 12 months, Unrealized losses | 1,000,000 | 66,000,000 |
12 months or more, Fair value | 15,494,000,000 | 23,246,000,000 |
12 months or more, Unrealized losses | 139,000,000 | 681,000,000 |
Total, Fair value | 16,174,000,000 | 28,504,000,000 |
Total, Unrealized losses | 140,000,000 | 747,000,000 |
Less than 12 months, Fair value, Total temporary impaired securities | 18,104,000,000 | 34,373,000,000 |
Less than 12 months, Unrealized losses, Total temporary impaired securities | 51,000,000 | 281,000,000 |
12 months or more, Fair Value, Total temporary impaired securities | 30,224,000,000 | 46,854,000,000 |
12 months or more, Unrealized losses, Total temporary impaired securities | 345,000,000 | 1,419,000,000 |
Total, Fair value, Total temporary impaired securities | 48,328,000,000 | 81,227,000,000 |
Total, Unrealized losses, Total temporary impaired securities | 396,000,000 | 1,700,000,000 |
AOCI, transfers from AFS to HTM Securities, gross unrealized losses, greater than 12 months | 76,000,000 | 87,000,000 |
AOCI, transfers from AFS to HTM Securities, gross unrealized losses, less than 12 months | 0 | 0 |
Agency RMBS | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 9,070,000,000 | 6,678,000,000 |
Less than 12 months, Unrealized losses | 31,000,000 | 30,000,000 |
12 months or more, Fair value | 7,410,000,000 | 9,250,000,000 |
12 months or more, Unrealized losses | 135,000,000 | 339,000,000 |
Total, Fair value | 16,480,000,000 | 15,928,000,000 |
Total, Unrealized losses | 166,000,000 | 369,000,000 |
Held-to-maturity: | ||
Less than 12 months, Fair value | 623,000,000 | 4,602,000,000 |
Less than 12 months, Unrealized losses | 1,000,000 | 56,000,000 |
12 months or more, Fair value | 12,922,000,000 | 17,107,000,000 |
12 months or more, Unrealized losses | 126,000,000 | 576,000,000 |
Total, Fair value | 13,545,000,000 | 21,709,000,000 |
Total, Unrealized losses | 127,000,000 | 632,000,000 |
U.S. Treasury | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 74,000,000 | 6,126,000,000 |
Less than 12 months, Unrealized losses | 1,000,000 | 23,000,000 |
12 months or more, Fair value | 2,961,000,000 | 6,880,000,000 |
12 months or more, Unrealized losses | 31,000,000 | 187,000,000 |
Total, Fair value | 3,035,000,000 | 13,006,000,000 |
Total, Unrealized losses | 32,000,000 | 210,000,000 |
Held-to-maturity: | ||
Less than 12 months, Fair value | 0 | 157,000,000 |
Less than 12 months, Unrealized losses | 0 | 2,000,000 |
12 months or more, Fair value | 2,066,000,000 | 4,343,000,000 |
12 months or more, Unrealized losses | 9,000,000 | 75,000,000 |
Total, Fair value | 2,066,000,000 | 4,500,000,000 |
Total, Unrealized losses | 9,000,000 | 77,000,000 |
Sovereign debt/sovereign guaranteed | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 1,680,000,000 | 2,185,000,000 |
Less than 12 months, Unrealized losses | 1,000,000 | 8,000,000 |
12 months or more, Fair value | 738,000,000 | 988,000,000 |
12 months or more, Unrealized losses | 2,000,000 | 13,000,000 |
Total, Fair value | 2,418,000,000 | 3,173,000,000 |
Total, Unrealized losses | 3,000,000 | 21,000,000 |
Agency commercial MBS | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 2,353,000,000 | 4,505,000,000 |
Less than 12 months, Unrealized losses | 6,000,000 | 50,000,000 |
12 months or more, Fair value | 1,030,000,000 | 3,082,000,000 |
12 months or more, Unrealized losses | 9,000,000 | 111,000,000 |
Total, Fair value | 3,383,000,000 | 7,587,000,000 |
Total, Unrealized losses | 15,000,000 | 161,000,000 |
Held-to-maturity: | ||
Less than 12 months, Fair value | 0 | 477,000,000 |
Less than 12 months, Unrealized losses | 0 | 7,000,000 |
12 months or more, Fair value | 57,000,000 | 654,000,000 |
12 months or more, Unrealized losses | 1,000,000 | 19,000,000 |
Total, Fair value | 57,000,000 | 1,131,000,000 |
Total, Unrealized losses | 1,000,000 | 26,000,000 |
Supranational | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 814,000,000 | 974,000,000 |
Less than 12 months, Unrealized losses | 1,000,000 | 2,000,000 |
12 months or more, Fair value | 206,000,000 | 481,000,000 |
12 months or more, Unrealized losses | 1,000,000 | 6,000,000 |
Total, Fair value | 1,020,000,000 | 1,455,000,000 |
Total, Unrealized losses | 2,000,000 | 8,000,000 |
CLOs | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 1,346,000,000 | 3,280,000,000 |
Less than 12 months, Unrealized losses | 4,000,000 | 46,000,000 |
12 months or more, Fair value | 1,134,000,000 | 2,000,000 |
12 months or more, Unrealized losses | 13,000,000 | 0 |
Total, Fair value | 2,480,000,000 | 3,282,000,000 |
Total, Unrealized losses | 17,000,000 | 46,000,000 |
Foreign covered bonds | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 568,000,000 | 1,058,000,000 |
Less than 12 months, Unrealized losses | 1,000,000 | 7,000,000 |
12 months or more, Fair value | 707,000,000 | 736,000,000 |
12 months or more, Unrealized losses | 3,000,000 | 12,000,000 |
Total, Fair value | 1,275,000,000 | 1,794,000,000 |
Total, Unrealized losses | 4,000,000 | 19,000,000 |
Other ABS | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 1,053,000,000 | 1,289,000,000 |
Less than 12 months, Unrealized losses | 4,000,000 | 4,000,000 |
12 months or more, Fair value | 31,000,000 | 23,000,000 |
12 months or more, Unrealized losses | 0 | 0 |
Total, Fair value | 1,084,000,000 | 1,312,000,000 |
Total, Unrealized losses | 4,000,000 | 4,000,000 |
Non-agency commercial MBS | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 414,000,000 | 1,015,000,000 |
Less than 12 months, Unrealized losses | 1,000,000 | 14,000,000 |
12 months or more, Fair value | 38,000,000 | 362,000,000 |
12 months or more, Unrealized losses | 0 | 14,000,000 |
Total, Fair value | 452,000,000 | 1,377,000,000 |
Total, Unrealized losses | 1,000,000 | 28,000,000 |
State and political subdivisions | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 0 | 316,000,000 |
Less than 12 months, Unrealized losses | 0 | 1,000,000 |
12 months or more, Fair value | 116,000,000 | 668,000,000 |
12 months or more, Unrealized losses | 1,000,000 | 21,000,000 |
Total, Fair value | 116,000,000 | 984,000,000 |
Total, Unrealized losses | 1,000,000 | 22,000,000 |
Non-agency RMBS | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 26,000,000 | 94,000,000 |
Less than 12 months, Unrealized losses | 0 | 1,000,000 |
12 months or more, Fair value | 121,000,000 | 157,000,000 |
12 months or more, Unrealized losses | 8,000,000 | 10,000,000 |
Total, Fair value | 147,000,000 | 251,000,000 |
Total, Unrealized losses | 8,000,000 | 11,000,000 |
Held-to-maturity: | ||
Less than 12 months, Fair value | 7,000,000 | 22,000,000 |
Less than 12 months, Unrealized losses | 0 | 1,000,000 |
12 months or more, Fair value | 42,000,000 | 31,000,000 |
12 months or more, Unrealized losses | 2,000,000 | 1,000,000 |
Total, Fair value | 49,000,000 | 53,000,000 |
Total, Unrealized losses | 2,000,000 | 2,000,000 |
Non-agency RMBS | Grantor Trust | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 6,000,000 | 22,000,000 |
Less than 12 months, Unrealized losses | 1,000,000 | 1,000,000 |
12 months or more, Fair value | 3,000,000 | 3,000,000 |
12 months or more, Unrealized losses | 1,000,000 | 1,000,000 |
Corporate bonds | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 26,000,000 | 685,000,000 |
Less than 12 months, Unrealized losses | 0 | 24,000,000 |
12 months or more, Fair value | 238,000,000 | 50,000,000 |
12 months or more, Unrealized losses | 3,000,000 | 2,000,000 |
Total, Fair value | 264,000,000 | 735,000,000 |
Total, Unrealized losses | 3,000,000 | 26,000,000 |
U.S. government agencies | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 513,000,000 | |
Less than 12 months, Unrealized losses | 4,000,000 | |
12 months or more, Fair value | 673,000,000 | |
12 months or more, Unrealized losses | 20,000,000 | |
Total, Fair value | 1,186,000,000 | |
Total, Unrealized losses | 24,000,000 | |
Held-to-maturity: | ||
Less than 12 months, Fair value | 50,000,000 | 0 |
Less than 12 months, Unrealized losses | 0 | 0 |
12 months or more, Fair value | 407,000,000 | 1,111,000,000 |
12 months or more, Unrealized losses | 1,000,000 | 10,000,000 |
Total, Fair value | 457,000,000 | 1,111,000,000 |
Total, Unrealized losses | $ 1,000,000 | 10,000,000 |
Other debt securities | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 397,000,000 | |
Less than 12 months, Unrealized losses | 1,000,000 | |
12 months or more, Fair value | 256,000,000 | |
12 months or more, Unrealized losses | 3,000,000 | |
Total, Fair value | 653,000,000 | |
Total, Unrealized losses | $ 4,000,000 |
Securities - Maturity Distribut
Securities - Maturity Distribution and Yield of Investment Securities Portfolio (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Securities available-for-sale, Amount: | ||
One year or less | $ 10,569 | |
Over 1 through 5 years | 19,896 | |
Over 5 through 10 years | 6,875 | |
Over 10 years | 3,026 | |
Total | 85,593 | $ 85,809 |
Securities held-to-maturity, Amount: | ||
One year or less | 1,971 | |
Over 1 through 5 years | 3,849 | |
Over 5 through 10 years | 842 | |
Over 10 years | 26 | |
Amortized cost | 34,549 | 33,982 |
Mortgage-backed securities | ||
Securities available-for-sale, Amount: | ||
Without single maturity date | 39,108 | |
Securities held-to-maturity, Amount: | ||
Mortgage-backed securities | 27,861 | |
Asset-backed securities | ||
Securities available-for-sale, Amount: | ||
Without single maturity date | 6,119 | |
U.S. Treasury | ||
Securities available-for-sale, Amount: | ||
One year or less | 3,152 | |
Over 1 through 5 years | 5,057 | |
Over 5 through 10 years | 3,283 | |
Over 10 years | 2,705 | |
Total | $ 14,197 | 20,076 |
Securities available-for-sale (Yield): | ||
One year or less | 2.59% | |
Over 1 through 5 years | 1.81% | |
Over 5 through 10 years | 2.31% | |
Over 10 years | 3.11% | |
Total | 2.35% | |
Securities held-to-maturity, Amount: | ||
One year or less | $ 1,556 | |
Over 1 through 5 years | 2,600 | |
Over 5 through 10 years | 311 | |
Over 10 years | 0 | |
Amortized cost | $ 4,467 | 4,727 |
Securities held-to-maturity (Yield): | ||
One year or less | 1.48% | |
Over 1 through 5 years | 1.96% | |
Over 5 through 10 years | 2.18% | |
Over 10 years | 0.00% | |
Total | 1.81% | |
U.S. government agencies | ||
Securities available-for-sale, Amount: | ||
One year or less | $ 80 | |
Over 1 through 5 years | 991 | |
Over 5 through 10 years | 1,579 | |
Over 10 years | 0 | |
Total | $ 2,650 | 1,657 |
Securities available-for-sale (Yield): | ||
One year or less | 2.28% | |
Over 1 through 5 years | 2.68% | |
Over 5 through 10 years | 2.81% | |
Over 10 years | 0.00% | |
Total | 2.74% | |
Securities held-to-maturity, Amount: | ||
One year or less | $ 333 | |
Over 1 through 5 years | 759 | |
Over 5 through 10 years | 172 | |
Over 10 years | 12 | |
Amortized cost | $ 1,276 | 1,497 |
Securities held-to-maturity (Yield): | ||
One year or less | 1.31% | |
Over 1 through 5 years | 2.33% | |
Over 5 through 10 years | 2.89% | |
Over 10 years | 3.25% | |
Total | 2.15% | |
State and political subdivisions | ||
Securities available-for-sale, Amount: | ||
One year or less | $ 189 | |
Over 1 through 5 years | 849 | |
Over 5 through 10 years | 130 | |
Over 10 years | 112 | |
Total | $ 1,280 | 2,247 |
Securities available-for-sale (Yield): | ||
One year or less | 2.97% | |
Over 1 through 5 years | 3.16% | |
Over 5 through 10 years | 3.05% | |
Over 10 years | 2.96% | |
Total | 3.10% | |
Securities held-to-maturity, Amount: | ||
One year or less | $ 0 | |
Over 1 through 5 years | 3 | |
Over 5 through 10 years | 0 | |
Over 10 years | 14 | |
Amortized cost | $ 17 | $ 17 |
Securities held-to-maturity (Yield): | ||
One year or less | 0.00% | |
Over 1 through 5 years | 5.68% | |
Over 5 through 10 years | 0.00% | |
Over 10 years | 4.76% | |
Total | 4.93% | |
Other bonds, notes and debentures | ||
Securities available-for-sale, Amount: | ||
One year or less | $ 7,148 | |
Over 1 through 5 years | 12,999 | |
Over 5 through 10 years | 1,883 | |
Over 10 years | 209 | |
Total | $ 22,239 | |
Securities available-for-sale (Yield): | ||
One year or less | 1.32% | |
Over 1 through 5 years | 1.34% | |
Over 5 through 10 years | 0.84% | |
Over 10 years | 1.78% | |
Total | 1.30% | |
Securities held-to-maturity, Amount: | ||
One year or less | $ 82 | |
Over 1 through 5 years | 487 | |
Over 5 through 10 years | 359 | |
Over 10 years | 0 | |
Amortized cost | $ 928 | |
Securities held-to-maturity (Yield): | ||
One year or less | 0.64% | |
Over 1 through 5 years | 0.57% | |
Over 5 through 10 years | 0.81% | |
Over 10 years | 0.00% | |
Total | 0.67% | |
Mortgage/ asset-backed | ||
Securities available-for-sale, Amount: | ||
Total | $ 45,227 | |
Securities available-for-sale (Yield): | ||
Total | 3.20% | |
Securities held-to-maturity, Amount: | ||
Amortized cost | $ 27,861 | |
Securities held-to-maturity (Yield): | ||
Total | 2.98% | |
Mortgage/ asset-backed | Mortgage-backed securities | ||
Securities available-for-sale, Amount: | ||
Without single maturity date | $ 39,108 | |
Securities available-for-sale (Yield): | ||
Without single maturity date | 3.18% | |
Securities held-to-maturity, Amount: | ||
Mortgage-backed securities | $ 27,861 | |
Securities held-to-maturity (Yield): | ||
Without single maturity date | 2.98% | |
Mortgage/ asset-backed | Asset-backed securities | ||
Securities available-for-sale, Amount: | ||
Without single maturity date | $ 6,119 | |
Securities available-for-sale (Yield): | ||
Without single maturity date | 3.33% |
Securities - Debt Securities Cr
Securities - Debt Securities Credit Losses Roll Forward Recorded in Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other than Temporary Impairment [Roll Forward] | ||||
Beginning balance | $ 77 | $ 80 | $ 78 | $ 84 |
Add: Initial OTTI credit losses | 0 | 0 | 0 | 0 |
Subsequent OTTI credit losses | 0 | 0 | 0 | 0 |
Less: Realized losses for securities sold | 0 | 1 | 1 | 5 |
Ending balance | $ 77 | $ 79 | $ 77 | $ 79 |
Securities - Pledged assets (De
Securities - Pledged assets (Details) - USD ($) $ in Billions | Jun. 30, 2019 | Dec. 31, 2018 |
Securities [Abstract] | ||
Pledged assets | $ 117 | $ 120 |
Pledged collateral for potential borrowings at the Federal Reserve Discount Window | 90 | 96 |
Pledged asset, other not separately reported, potential borrowings at FHLB | 7 | 7 |
Pledged securities | 98 | 100 |
Pledged loans | 14 | 15 |
Pledged trading assets | 5 | 4 |
Pledged interest-bearing deposits | 1 | 1 |
Financial instruments owned and pledged as collateral, amount eligible to be pledged by counterparty | 19 | 13 |
Pledged assets permitted to be sold or repledged | 164 | 151 |
Market value of securities received as collateral that have been sold or repledged | 101 | 101 |
Cash segregated under federal or other regulations | 2 | 2 |
Securities segregated under federal or other regulations | $ 2 | $ 2 |
Loans and asset quality - Loan
Loans and asset quality - Loan Distribution and Industry Concentrations (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 52,396 | $ 56,564 | ||
Unearned income on lease financings | 340 | 358 | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 1,700 | |||
Financial institutions | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 11,500 | |||
Wealth management loans and mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 15,669 | 15,965 | ||
Other residential mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 549 | 594 | ||
Overdrafts | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 4,700 | 5,500 | ||
Margin loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 10,600 | 13,500 | ||
Domestic | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 40,857 | 45,044 | ||
Domestic | Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 1,452 | 1,949 | ||
Domestic | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 5,192 | 4,787 | ||
Domestic | Financial institutions | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 4,574 | 5,091 | ||
Domestic | Lease financings | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 662 | 706 | ||
Domestic | Wealth management loans and mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 15,579 | 15,843 | ||
Domestic | Other residential mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 549 | 594 | ||
Domestic | Overdrafts | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 1,575 | $ 654 | 1,550 | $ 1,090 |
Domestic | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 1,122 | 1,152 | 1,181 | 1,169 |
Domestic | Margin loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 10,152 | $ 12,107 | 13,343 | $ 14,914 |
Foreign | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 11,539 | 11,520 | ||
Foreign | Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 285 | 183 | ||
Foreign | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 7 | 0 | ||
Foreign | Financial institutions | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 6,948 | 6,492 | ||
Foreign | Lease financings | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 563 | 551 | ||
Foreign | Wealth management loans and mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 90 | 122 | ||
Foreign | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 3,196 | 4,031 | ||
Foreign | Margin loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 450 | $ 141 |
Loans and asset quality - Loans
Loans and asset quality - Loans Additional Information (Details) | 6 Months Ended |
Jun. 30, 2019class_of_receivablesegment | |
Receivables [Abstract] | |
Number of portfolio segments (segment) | segment | 3 |
Number of classes of financing receivables (class of receivable) | class_of_receivable | 6 |
Loans and asset quality - Allow
Loans and asset quality - Allowance for Credit Losses Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | $ 248 | $ 252 | $ 256 | $ 252 | $ 261 | |
Charge-offs | (1) | (11) | 0 | (12) | 0 | |
Recoveries | 2 | 0 | 1 | 2 | 1 | |
Net (charge-offs) recoveries | 1 | (11) | 1 | (10) | 1 | |
Provision | (8) | 7 | (3) | (1) | (8) | |
Ending balance | 241 | 248 | 254 | 241 | 254 | |
Allowance for: | ||||||
Loan losses | 146 | 146 | 145 | 146 | 145 | |
Lending-related commitments | 95 | 102 | 109 | 95 | 109 | |
Individually evaluated for impairment: | ||||||
Loan balance | 112 | 100 | 5 | 112 | 5 | |
Allowance for loan losses | 10 | 10 | 0 | 10 | 0 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 52,284 | 53,387 | 57,771 | 52,284 | 57,771 | |
Allowance for loan losses | 136 | 136 | 145 | 136 | 145 | |
Loans | 52,396 | 52,396 | $ 56,564 | |||
Commercial | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 1,700 | 1,700 | ||||
Financial institutions | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 11,500 | 11,500 | ||||
Wealth management loans and mortgages | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 15,669 | 15,669 | 15,965 | |||
Other residential mortgages | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 549 | 549 | 594 | |||
Overdrafts | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 4,700 | 4,700 | 5,500 | |||
Margin loans | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 10,600 | 10,600 | 13,500 | |||
Domestic | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 40,857 | 40,857 | 45,044 | |||
Domestic | Commercial | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 82 | 81 | 75 | 81 | 77 | |
Charge-offs | 0 | (11) | 0 | (11) | 0 | |
Recoveries | 0 | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | (11) | 0 | (11) | 0 | |
Provision | (5) | 12 | 1 | 7 | (1) | |
Ending balance | 77 | 82 | 76 | 77 | 76 | |
Allowance for: | ||||||
Loan losses | 23 | 24 | 17 | 23 | 17 | |
Lending-related commitments | 54 | 58 | 59 | 54 | 59 | |
Individually evaluated for impairment: | ||||||
Loan balance | 96 | 96 | 0 | 96 | 0 | |
Allowance for loan losses | 10 | 10 | 0 | 10 | 0 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 1,356 | 1,626 | 2,117 | 1,356 | 2,117 | |
Allowance for loan losses | 13 | 14 | 17 | 13 | 17 | |
Loans | 1,452 | 1,452 | 1,949 | |||
Domestic | Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 74 | 75 | 75 | 75 | 76 | |
Charge-offs | 0 | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | 0 | |
Provision | (2) | (1) | (1) | (3) | (2) | |
Ending balance | 72 | 74 | 74 | 72 | 74 | |
Allowance for: | ||||||
Loan losses | 57 | 56 | 55 | 57 | 55 | |
Lending-related commitments | 15 | 18 | 19 | 15 | 19 | |
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 0 | 0 | 0 | |
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 5,192 | 4,921 | 4,974 | 5,192 | 4,974 | |
Allowance for loan losses | 57 | 56 | 55 | 57 | 55 | |
Loans | 5,192 | 5,192 | 4,787 | |||
Domestic | Financial institutions | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 23 | 22 | 22 | 22 | 23 | |
Charge-offs | 0 | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | 0 | |
Provision | (2) | 1 | 2 | (1) | 1 | |
Ending balance | 21 | 23 | 24 | 21 | 24 | |
Allowance for: | ||||||
Loan losses | 8 | 10 | 8 | 8 | 8 | |
Lending-related commitments | 13 | 13 | 16 | 13 | 16 | |
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 0 | 0 | 0 | |
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 4,574 | 4,652 | 5,526 | 4,574 | 5,526 | |
Allowance for loan losses | 8 | 10 | 8 | 8 | 8 | |
Loans | 4,574 | 4,574 | 5,091 | |||
Domestic | Lease financings | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 4 | 5 | 7 | 5 | 8 | |
Charge-offs | 0 | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | 0 | |
Provision | 0 | (1) | (1) | (1) | (2) | |
Ending balance | 4 | 4 | 6 | 4 | 6 | |
Allowance for: | ||||||
Loan losses | 4 | 4 | 6 | 4 | 6 | |
Lending-related commitments | 0 | 0 | 0 | 0 | 0 | |
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 0 | 0 | 0 | |
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 662 | 653 | 758 | 662 | 758 | |
Allowance for loan losses | 4 | 4 | 6 | 4 | 6 | |
Loans | 662 | 662 | 706 | |||
Domestic | Wealth management loans and mortgages | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 21 | 21 | 23 | 21 | 22 | |
Charge-offs | (1) | 0 | 0 | (1) | 0 | |
Recoveries | 0 | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | (1) | 0 | 0 | (1) | 0 | |
Provision | 0 | 0 | 0 | 0 | 1 | |
Ending balance | 20 | 21 | 23 | 20 | 23 | |
Allowance for: | ||||||
Loan losses | 17 | 18 | 19 | 17 | 19 | |
Lending-related commitments | 3 | 3 | 4 | 3 | 4 | |
Individually evaluated for impairment: | ||||||
Loan balance | 16 | 4 | 5 | 16 | 5 | |
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 15,563 | 15,724 | 16,186 | 15,563 | 16,186 | |
Allowance for loan losses | 17 | 18 | 19 | 17 | 19 | |
Loans | 15,579 | 15,579 | 15,843 | |||
Domestic | Other residential mortgages | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 15 | 16 | 19 | 16 | 20 | |
Charge-offs | 0 | 0 | 0 | 0 | 0 | |
Recoveries | 2 | 0 | 1 | 2 | 1 | |
Net (charge-offs) recoveries | 2 | 0 | 1 | 2 | 1 | |
Provision | (3) | (1) | (2) | (4) | (3) | |
Ending balance | 14 | 15 | 18 | 14 | 18 | |
Allowance for: | ||||||
Loan losses | 14 | 15 | 18 | 14 | 18 | |
Lending-related commitments | 0 | 0 | 0 | 0 | 0 | |
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 0 | 0 | 0 | |
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 549 | 574 | 653 | 549 | 653 | |
Allowance for loan losses | 14 | 15 | 18 | 14 | 18 | |
Loans | 549 | 549 | 594 | |||
Domestic | All other | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 0 | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | 0 | |
Provision | 0 | 0 | 0 | 0 | 0 | |
Ending balance | 0 | 0 | 0 | 0 | 0 | |
Allowance for: | ||||||
Loan losses | 0 | 0 | 0 | 0 | 0 | |
Lending-related commitments | 0 | 0 | 0 | 0 | 0 | |
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 0 | 0 | 0 | |
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 12,849 | 13,913 | 17,173 | 12,849 | 17,173 | |
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | |
Domestic | Overdrafts | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 1,575 | 654 | 1,090 | 1,575 | 1,090 | 1,550 |
Domestic | Margin loans | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 10,152 | 12,107 | 14,914 | 10,152 | 14,914 | 13,343 |
Domestic | Other | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 1,122 | 1,152 | 1,169 | 1,122 | 1,169 | 1,181 |
Foreign | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 29 | 32 | 35 | 32 | 35 | |
Charge-offs | 0 | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | 0 | |
Provision | 4 | (3) | (2) | 1 | (2) | |
Ending balance | 33 | 29 | 33 | 33 | 33 | |
Allowance for: | ||||||
Loan losses | 23 | 19 | 22 | 23 | 22 | |
Lending-related commitments | 10 | 10 | 11 | 10 | 11 | |
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 0 | 0 | 0 | |
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 11,539 | 11,324 | 10,384 | 11,539 | 10,384 | |
Allowance for loan losses | 23 | $ 19 | $ 22 | 23 | $ 22 | |
Loans | 11,539 | 11,539 | 11,520 | |||
Foreign | Commercial | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 285 | 285 | 183 | |||
Foreign | Commercial real estate | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 7 | 7 | 0 | |||
Foreign | Financial institutions | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 6,948 | 6,948 | 6,492 | |||
Foreign | Lease financings | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 563 | 563 | 551 | |||
Foreign | Wealth management loans and mortgages | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 90 | 90 | 122 | |||
Foreign | Margin loans | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 450 | 450 | 141 | |||
Foreign | Other | ||||||
Collectively evaluated for impairment: | ||||||
Loans | $ 3,196 | $ 3,196 | $ 4,031 |
Loans and asset quality - Nonpe
Loans and asset quality - Nonperforming Assets (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Total nonperforming loans | $ 12 | |
Domestic | ||
Financing Receivable, Impaired [Line Items] | ||
Total nonperforming loans | 184 | $ 76 |
Other assets owned | 2 | 3 |
Total nonperforming assets (a) | 186 | 79 |
Domestic | Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Total nonperforming loans | 96 | 0 |
Domestic | Other residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Total nonperforming loans | 65 | 67 |
Domestic | Wealth management loans and mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Total nonperforming loans | $ 23 | $ 9 |
Loans and asset quality - Lost
Loans and asset quality - Lost Interest (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Receivables [Abstract] | |||||
Amount by which interest income would have increased if nonperforming loans at year-end had been performing for the entire year | $ 4 | $ 2 | $ 1 | $ 7 | $ 2 |
Loans and asset quality - Infor
Loans and asset quality - Information about Impaired Loans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, average recorded investment | $ 96 | $ 48 | $ 1 | $ 64 | $ 1 | |
Total impaired loans, average recorded investment | 106 | 52 | 5 | 72 | 5 | |
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | 0 | 0 | |
Total impaired loans, interest income recognized | 0 | 0 | 0 | 0 | 0 | |
Total impaired loans, recorded investment | 112 | 112 | $ 4 | |||
Total impaired loans, unpaid Principal balance | 112 | 112 | 4 | |||
Impaired loans with an allowance, related allowance | 10 | 10 | 0 | |||
Commercial | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, average recorded investment | 96 | 48 | 0 | 64 | 0 | |
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | 0 | 0 | |
Impaired loans with an allowance, recorded investment | 96 | 96 | 0 | |||
Impaired loans with an allowance, unpaid Principal balance | 96 | 96 | 0 | |||
Impaired loans with an allowance, related allowance | 10 | 10 | 0 | |||
Wealth management loans and mortgages | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, average recorded investment | 0 | 0 | 1 | 0 | 1 | |
Impaired loans without an allowance, average recorded investment | 10 | 4 | 4 | 8 | 4 | |
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | 0 | 0 | |
Impaired loans without an allowance, interest income recognized | 0 | $ 0 | $ 0 | 0 | $ 0 | |
Impaired loans without an allowance, recorded investment | 16 | 16 | 4 | |||
Impaired loans without an allowance, unpaid Principal balance | 16 | 16 | 4 | |||
Loans individually less than one million | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, recorded investment | 1 | 1 | 1 | |||
Impaired loans with an allowance, related allowance | 1 | 1 | 1 | |||
Loans individually less than one million | Maximum | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, recorded investment | $ 1 | $ 1 | $ 1 |
Loans and asset quality - Inf_2
Loans and asset quality - Information about Past Due Loans (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | $ 52 | $ 60 |
30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 49 | 38 |
60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 3 | 10 |
Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 0 | 12 |
Domestic | Wealth management loans and mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 21 | 28 |
Domestic | Wealth management loans and mortgages | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 19 | 22 |
Domestic | Wealth management loans and mortgages | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 2 | 1 |
Domestic | Wealth management loans and mortgages | Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 0 | 5 |
Domestic | Other residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 12 | 25 |
Domestic | Other residential mortgages | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 11 | 12 |
Domestic | Other residential mortgages | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 1 | 6 |
Domestic | Other residential mortgages | Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 0 | 7 |
Domestic | Financial institutions | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 10 | 6 |
Domestic | Financial institutions | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 10 | 3 |
Domestic | Financial institutions | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 0 | 3 |
Domestic | Financial institutions | Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Domestic | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 9 | 1 |
Domestic | Commercial real estate | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 9 | 1 |
Domestic | Commercial real estate | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Domestic | Commercial real estate | Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | $ 0 | $ 0 |
Loans and asset quality - Troub
Loans and asset quality - Troubled Debt Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | |
Other residential mortgages | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Outstanding recorded investment Post- modification | $ 1 | $ 1 | $ 1 |
Loans and asset quality - Credi
Loans and asset quality - Credit Risk Profile by Grade (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 52,396 | $ 56,564 |
Wealth management loans and mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 15,669 | 15,965 |
Wealth management loans and mortgages | Wealth management mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 8,835 | 8,958 |
Investment grade | Wealth management loans and mortgages | Wealth management loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 6,673 | 6,901 |
Non-investment grade | Wealth management loans and mortgages | Wealth management loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 161 | 106 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,737 | 2,132 |
Commercial | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,555 | 2,036 |
Commercial | Non-investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 182 | 96 |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 5,199 | 4,787 |
Commercial real estate | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 4,577 | 4,184 |
Commercial real estate | Non-investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 622 | 603 |
Financial institutions | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 11,522 | 11,583 |
Financial institutions | Investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 9,338 | 9,586 |
Financial institutions | Non-investment grade | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 2,184 | $ 1,997 |
Loans and asset quality - Cre_2
Loans and asset quality - Credit Risk Indicators Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 52,396 | $ 56,564 | ||
Wealth management loans and mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan to value ratio at origination (percent) | 62.00% | |||
Percentage of past due mortgages (less than) | 1.00% | |||
Loans | $ 15,669 | 15,965 | ||
Wealth management loans and mortgages | California | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Geographic concentrations (percent) | 23.00% | |||
Wealth management loans and mortgages | New York | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Geographic concentrations (percent) | 18.00% | |||
Wealth management loans and mortgages | Massachusetts | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Geographic concentrations (percent) | 10.00% | |||
Wealth management loans and mortgages | Florida | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Geographic concentrations (percent) | 8.00% | |||
Wealth management loans and mortgages | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Geographic concentrations (percent) | 41.00% | |||
Other residential mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 549 | 594 | ||
Overdrafts | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 4,700 | 5,500 | ||
Overdraft repayment period | 2 days | |||
Margin loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 10,600 | 13,500 | ||
Domestic | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 40,857 | 45,044 | ||
Domestic | Wealth management loans and mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 15,579 | 15,843 | ||
Domestic | Other residential mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 549 | 594 | ||
Purchased mortgages | $ 111 | |||
Percentage of purchased residential mortgages that were at least 60 days delinquent | 10.00% | |||
Domestic | Overdrafts | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 1,575 | $ 654 | 1,550 | $ 1,090 |
Domestic | Margin loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 10,152 | $ 12,107 | $ 13,343 | $ 14,914 |
Domestic | Margin loans | Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Required daily collateral margin (in excess of) | 100.00% |
Leasing - Narrative (Details)
Leasing - Narrative (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease, remaining lease term (years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease, remaining lease term (years) | 20 years |
Leasing - Balance Sheet Informa
Leasing - Balance Sheet Information (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease, right-of-use asset | $ 1,160 |
Finance lease, right-of-use asset | 21 |
Right-of-use asset | 1,181 |
Operating lease, liability | 1,358 |
Finance lease, liability | 10 |
Lease liability | $ 1,368 |
Operating lease, weighted average remaining lease term | 8 years 3 months 18 days |
Finance lease, weighted average remaining lease term | 3 years 3 months 18 days |
Operating lease, weighted average discount rate, percent | 3.17% |
Finance lease, weighted average discount rate, percent | 2.78% |
Leasing - Components of Lease E
Leasing - Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease expense | $ 63 | $ 132 |
Variable lease expense | 10 | 19 |
Sublease income | (8) | (16) |
Finance lease expense: | ||
Amortization of right-of-use assets | 2 | 4 |
Interest on lease liabilities | 0 | 0 |
Total finance lease expense | 2 | 4 |
Total lease expense | $ 67 | $ 139 |
Leasing - Cash Flow Information
Leasing - Cash Flow Information Related to Leases (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from finance leases | $ 0 |
Operating cash flows from operating leases | 134 |
Financing cash flows from finance leases | $ 12 |
Leasing - Maturities of Operati
Leasing - Maturities of Operating Leases Prior to Adopting 2016-02 (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 264 |
2020 | 244 |
2021 | 211 |
2022 | 172 |
2023 | 136 |
2024 and thereafter | 432 |
Total | $ 1,459 |
Leasing - Maturities of Opera_2
Leasing - Maturities of Operating and Finance Leases After Adopting 2016-02 (Details) $ in Millions | Jun. 30, 2019USD ($) |
Operating leases | |
2019 | $ 148 |
2020 | 271 |
2021 | 215 |
2022 | 175 |
2023 | 137 |
2024 and thereafter | 600 |
Total lease payments | 1,546 |
Less: Imputed interest | (188) |
Total | 1,358 |
Finance leases | |
2019 | 9 |
2020 | 1 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 and thereafter | 0 |
Total lease payments | 10 |
Less: Imputed interest | 0 |
Total | $ 10 |
Goodwill and intangible asset_2
Goodwill and intangible assets - Goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 17,350 | $ 17,564 |
Dispositions | (65) | |
Foreign currency translation | (13) | (81) |
Ending balance | 17,337 | 17,418 |
Investment Services | ||
Goodwill [Roll Forward] | ||
Beginning balance | 8,333 | 8,389 |
Dispositions | 0 | |
Foreign currency translation | (6) | (31) |
Ending balance | 8,327 | 8,358 |
Investment Management | ||
Goodwill [Roll Forward] | ||
Beginning balance | 8,970 | 9,128 |
Dispositions | (65) | |
Foreign currency translation | (7) | (50) |
Ending balance | 8,963 | 9,013 |
Other | ||
Goodwill [Roll Forward] | ||
Beginning balance | 47 | 47 |
Dispositions | 0 | |
Foreign currency translation | 0 | 0 |
Ending balance | $ 47 | $ 47 |
Other assets - Components of Ot
Other assets - Components of Other Assets (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Other Assets [Abstract] | ||
Corporate/bank-owned life insurance | $ 4,970 | $ 4,937 |
Accounts receivable | 4,322 | 3,692 |
Fails to deliver | 4,057 | 2,274 |
Software | 1,710 | 1,652 |
Prepaid pension assets | 1,444 | 1,357 |
Renewable energy investments | 1,201 | 1,264 |
Equity in a joint venture and other investments | 1,156 | 1,064 |
Qualified affordable housing project investments | 1,068 | 999 |
Income taxes receivable | 743 | 1,125 |
Prepaid expense | 539 | 385 |
Federal Reserve Bank stock | 463 | 484 |
Seed capital | 217 | 224 |
Fair value of hedging derivatives | 156 | 289 |
Other | 1,691 | 1,552 |
Total other assets | 23,737 | 21,298 |
Federal Home Loan Bank stock, at cost | $ 73 | $ 111 |
Goodwill and intangible asset_3
Goodwill and intangible assets - Intangible Assets by Business Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Intangible Assets [Roll Forward] | |||||
Beginning Balance | $ 3,220 | $ 3,220 | $ 3,411 | ||
Amortization | $ (30) | (29) | $ (48) | (59) | (97) |
Foreign currency translation | (1) | (6) | |||
Ending Balance | 3,160 | 3,308 | 3,160 | 3,308 | |
Investment Services | |||||
Intangible Assets [Roll Forward] | |||||
Beginning Balance | 758 | 758 | 888 | ||
Amortization | (41) | (72) | |||
Foreign currency translation | 0 | (1) | |||
Ending Balance | 717 | 815 | 717 | 815 | |
Investment Management | |||||
Intangible Assets [Roll Forward] | |||||
Beginning Balance | 1,613 | 1,613 | 1,674 | ||
Amortization | (18) | (25) | |||
Foreign currency translation | (1) | (5) | |||
Ending Balance | 1,594 | 1,644 | 1,594 | 1,644 | |
Other | |||||
Intangible Assets [Roll Forward] | |||||
Beginning Balance | $ 849 | 849 | 849 | ||
Amortization | 0 | 0 | |||
Foreign currency translation | 0 | 0 | |||
Ending Balance | $ 849 | $ 849 | $ 849 | $ 849 |
Other assets - Non-Readily Mark
Other assets - Non-Readily Marketable Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Other Assets [Abstract] | ||||||
Equity securities without readily determinable fair value, amount | $ 61 | $ 61 | $ 55 | |||
Equity securities without readily determinable fair value, upward price adjustment, annual amount | 2 | $ 0 | $ 5 | 2 | $ 25 | |
Equity securities without readily determinable fair value, downward price adjustment, annual amount | (1) | 0 | 0 | (1) | 0 | |
Equity securities without readily determinable fair value, net adjustment, annual amount | 1 | $ 0 | $ 5 | 1 | $ 25 | |
Equity securities without readily determinable fair value, upward price adjustment, cumulative amount amount | 30 | 30 | ||||
Equity securities without readily determinable fair value, downward price adjustment, cumulative amount | (2) | (2) | ||||
Equity securities without readily determinable fair value, net price adjustment, cumulative amount | $ 28 | $ 28 |
Goodwill and intangible asset_4
Goodwill and intangible assets - Intangible Assets by Type (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | $ 5,115 | $ 5,117 | ||
Accumulated amortization | (1,955) | (1,897) | ||
Net carrying amount | 3,160 | 3,220 | $ 3,308 | $ 3,411 |
Finite-lived Intangible Assets | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | 2,536 | 2,497 | ||
Accumulated amortization | (1,955) | (1,897) | ||
Net carrying amount | $ 581 | 600 | ||
Finite-lived Intangible Assets | Weighted Average | ||||
Intangible Assets by Major Class [Line Items] | ||||
Remaining weighted- average amortization period | 11 years | |||
Finite-lived Intangible Assets | Customer contracts—Investment Services | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | $ 1,573 | 1,572 | ||
Accumulated amortization | (1,227) | (1,186) | ||
Net carrying amount | $ 346 | 386 | ||
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 | $ 898 | 899 | ||
Accumulated amortization | (714) | (699) | ||
Net carrying amount | $ 184 | 200 | ||
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 | $ 65 | 26 | ||
Accumulated amortization | (14) | (12) | ||
Net carrying amount | $ 51 | 14 | ||
Finite-lived Intangible Assets | Other | Weighted Average | ||||
Intangible Assets by Major Class [Line Items] | ||||
Remaining weighted- average amortization period | 14 years | |||
Indefinite-lived Intangible Assets | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | $ 2,579 | 2,620 | ||
Net carrying amount | 2,579 | 2,620 | ||
Indefinite-lived Intangible Assets | Tradenames | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | 1,292 | 1,332 | ||
Net carrying amount | 1,292 | 1,332 | ||
Indefinite-lived Intangible Assets | Customer relationships | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | 1,287 | 1,288 | ||
Net carrying amount | $ 1,287 | $ 1,288 |
Other assets - Qualified Afford
Other assets - Qualified Affordable Housing Project Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Other Assets [Abstract] | ||||||
Qualified affordable housing project investments | $ 1,068 | $ 1,068 | $ 999 | |||
Qualified affordable housing project investments, commitment | 500 | 500 | $ 479 | |||
Qualified affordable housing project commitment - 2019 | 98 | 98 | ||||
Qualified affordable housing project commitment - 2020 | 144 | 144 | ||||
Qualified affordable housing project commitment - 2021 | 152 | 152 | ||||
Qualified affordable housing project commitment - 2022 | 82 | 82 | ||||
Qualified affordable housing project commitment - 2023 | 6 | 6 | ||||
Qualified affordable housing project commitment - 2024 and thereafter | 18 | 18 | ||||
Tax credits and other tax benefits | 39 | $ 39 | $ 42 | 78 | $ 82 | |
Amortization expense included in the provision for income taxes | $ 32 | $ 32 | $ 35 | $ 64 | $ 68 |
Goodwill and intangible asset_5
Goodwill and intangible assets - Estimated Annual Amortization Expense (Details) $ in Millions | Jun. 30, 2019USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2019 | $ 117 |
2020 | 104 |
2021 | 81 |
2022 | 63 |
2023 | $ 52 |
Other assets - Seed Capital and
Other assets - Seed Capital and Private Equity Investments (Details) - Other Assets - NAV - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Fair value | $ 178 | $ 215 |
Unfunded commitments | 54 | 41 |
Seed capital | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Fair value | 60 | 54 |
Unfunded commitments | $ 0 | $ 0 |
Redemption frequency | Daily-quarterly | Daily-quarterly |
Private equitiy investments (SBICs) | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Fair value | $ 81 | $ 74 |
Unfunded commitments | 54 | 41 |
Other corporate investments | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Fair value | 37 | 87 |
Unfunded commitments | $ 0 | $ 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 |
Goodwill and intangible asset_6
Goodwill and intangible assets - Narrative (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019segmentreporting_unit | |
Goodwill [Line Items] | ||
Number of reportable segments (segment) | segment | 3 | |
Number of reporting units (reporting unit) | 7 | |
Goodwill impairment | $ | $ 0 | |
Investment Services | ||
Goodwill [Line Items] | ||
Number of reporting units (reporting unit) | 4 | |
Investment Management | ||
Goodwill [Line Items] | ||
Number of reporting units (reporting unit) | 2 | |
Other | ||
Goodwill [Line Items] | ||
Number of reporting units (reporting unit) | 1 |
Contract revenue - Disaggregati
Contract revenue - Disaggregation of Contract Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Total fee and other revenue | $ 3,112 | $ 3,032 | $ 3,210 | $ 6,144 | $ 6,480 |
Income from consolidated investment management funds, net of noncontrolling interests | 1,017 | 946 | 1,103 | 1,963 | 2,274 |
Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 2,853 | 2,783 | 2,894 | 5,636 | 5,875 |
Fee and other revenue - not in scope of ASC 606 | 265 | 265 | 321 | 530 | 610 |
Total fee and other revenue | 3,118 | 3,048 | 3,215 | 6,166 | 6,485 |
Asset servicing | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 1,109 | 1,093 | 1,120 | 2,202 | 2,262 |
Clearing services | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 410 | 398 | 401 | 808 | 825 |
Issuer services | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 291 | 251 | 265 | 542 | 525 |
Treasury services | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 141 | 132 | 141 | 273 | 279 |
Total investment services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 1,951 | 1,874 | 1,927 | 3,825 | 3,891 |
Investment management and performance fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 833 | 841 | 898 | 1,674 | 1,844 |
Financing-related fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 17 | 17 | 15 | 34 | 32 |
Distribution and servicing | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 31 | 31 | 34 | 62 | 70 |
Investment and other income | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 21 | 20 | 20 | 41 | 38 |
Investment Services | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 2,007 | 1,930 | 1,979 | 3,937 | 3,993 |
Fee and other revenue - not in scope of ASC 606 | 220 | 224 | 254 | 444 | 490 |
Total fee and other revenue | 2,227 | 2,154 | 2,233 | 4,381 | 4,483 |
Investment Services | Asset servicing | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 1,089 | 1,073 | 1,098 | 2,162 | 2,215 |
Investment Services | Clearing services | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 411 | 398 | 401 | 809 | 824 |
Investment Services | Issuer services | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 291 | 251 | 265 | 542 | 525 |
Investment Services | Treasury services | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 140 | 132 | 140 | 272 | 278 |
Investment Services | Total investment services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 1,931 | 1,854 | 1,904 | 3,785 | 3,842 |
Investment Services | Investment management and performance fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 4 | 4 | 5 | 8 | 9 |
Investment Services | Financing-related fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 16 | 17 | 15 | 33 | 32 |
Investment Services | Distribution and servicing | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | (13) | (14) | (14) | (27) | (28) |
Investment Services | Investment and other income | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 69 | 69 | 69 | 138 | 138 |
Investment Management | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 846 | 853 | 913 | 1,699 | 1,879 |
Fee and other revenue - not in scope of ASC 606 | 4 | 11 | 28 | 15 | 74 |
Total fee and other revenue | 850 | 864 | 941 | 1,714 | 1,953 |
Income from consolidated investment management funds, net of noncontrolling interests | 6 | 16 | 5 | 22 | 5 |
Investment Management | Asset servicing | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 20 | 20 | 21 | 40 | 46 |
Investment Management | Clearing services | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 0 | 0 | 0 | 0 | 0 |
Investment Management | Issuer services | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 0 | 0 | 0 | 0 | 0 |
Investment Management | Treasury services | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 1 | 0 | 1 | 1 | 1 |
Investment Management | Total investment services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 21 | 20 | 22 | 41 | 47 |
Investment Management | Investment management and performance fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 829 | 837 | 893 | 1,666 | 1,835 |
Investment Management | Financing-related fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 0 | 0 | 0 | 0 | 0 |
Investment Management | Distribution and servicing | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 44 | 45 | 48 | 89 | 98 |
Investment Management | Investment and other income | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | (48) | (49) | (50) | (97) | (101) |
Other | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 0 | 0 | 2 | 0 | 3 |
Fee and other revenue - not in scope of ASC 606 | 41 | 30 | 39 | 71 | 46 |
Total fee and other revenue | 41 | 30 | 41 | 71 | 49 |
Other | Asset servicing | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 0 | 0 | 1 | 0 | 1 |
Other | Clearing services | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | (1) | 0 | 0 | (1) | 1 |
Other | Issuer services | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 0 | 0 | 0 | 0 | 0 |
Other | Treasury services | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 0 | 0 | 0 | 0 | 0 |
Other | Total investment services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | (1) | 0 | 1 | (1) | 2 |
Other | Investment management and performance fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 0 | 0 | 0 | 0 | 0 |
Other | Financing-related fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 1 | 0 | 0 | 1 | 0 |
Other | Distribution and servicing | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 0 | 0 | 0 | 0 | 0 |
Other | Investment and other income | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | $ 0 | $ 0 | $ 1 | $ 0 | $ 1 |
Contract revenue - Narrative (D
Contract revenue - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Capitalized Contract Cost [Line Items] | ||||||
Contract with customer, asset | $ 2,400,000,000 | $ 2,400,000,000 | $ 2,500,000,000 | |||
Provision for allowances | 2,000,000 | $ 4,000,000 | $ 4,000,000 | 6,000,000 | $ 6,000,000 | |
Contract assets representing accrued revenues not yet billed | 74,000,000 | 74,000,000 | 36,000,000 | |||
Impairment of contract assets | 0 | 0 | ||||
Contract with customer, liability | 198,000,000 | 198,000,000 | 171,000,000 | |||
Contract with customer, liability, revenue recognized | 59,000,000 | 75,000,000 | ||||
Capitalized contract cost, impairment | 0 | 0 | ||||
Incremental costs for obtaining contracts | ||||||
Capitalized Contract Cost [Line Items] | ||||||
Capitalized contract costs | $ 99,000,000 | $ 99,000,000 | 98,000,000 | |||
Capitalized contract cost, amortization period | 9 years | 9 years | ||||
Capitalized contract cost, amortization | $ 5,000,000 | 5,000,000 | 6,000,000 | $ 10,000,000 | 11,000,000 | |
Costs to fulfill contract | ||||||
Capitalized Contract Cost [Line Items] | ||||||
Capitalized contract costs | 18,000,000 | 18,000,000 | $ 20,000,000 | |||
Capitalized contract cost, amortization | $ 2,000,000 | $ 1,000,000 | $ 2,000,000 | $ 3,000,000 | $ 3,000,000 | |
Costs to fulfill contract | Minimum | ||||||
Capitalized Contract Cost [Line Items] | ||||||
Capitalized contract cost, amortization period | 7 years | 7 years | ||||
Costs to fulfill contract | Maximum | ||||||
Capitalized Contract Cost [Line Items] | ||||||
Capitalized contract cost, amortization period | 9 years | 9 years |
Net interest revenue (Details)
Net interest revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest revenue | |||||
Deposits with the Federal Reserve and other central banks | $ 113 | $ 139 | $ 136 | $ 252 | $ 262 |
Deposits with banks | 64 | 63 | 56 | 127 | 98 |
Federal funds sold and securities purchased under resale agreements | 568 | 474 | 230 | 1,042 | 400 |
Margin loans | 119 | 135 | 128 | 254 | 243 |
Non-margin loans | 365 | 355 | 345 | 720 | 650 |
Securities: | |||||
Taxable | 687 | 706 | 615 | 1,393 | 1,196 |
Exempt from federal income taxes | 10 | 12 | 14 | 22 | 29 |
Total securities | 697 | 718 | 629 | 1,415 | 1,225 |
Trading securities | 39 | 36 | 29 | 75 | 56 |
Total interest revenue | 1,965 | 1,920 | 1,553 | 3,885 | 2,934 |
Interest expense | |||||
Deposits | 432 | 391 | 173 | 823 | 290 |
Federal funds purchased and securities sold under repurchase agreements | 372 | 331 | 158 | 703 | 265 |
Trading liabilities | 11 | 7 | 7 | 18 | 16 |
Other borrowed funds | 20 | 24 | 14 | 44 | 23 |
Commercial paper | 18 | 8 | 21 | 26 | 33 |
Customer payables | 69 | 70 | 45 | 139 | 76 |
Long-term debt | 241 | 248 | 219 | 489 | 396 |
Total interest expense | 1,163 | 1,079 | 637 | 2,242 | 1,099 |
Net interest revenue | 802 | 841 | 916 | 1,643 | 1,835 |
Provision for credit losses | (8) | 7 | (3) | (1) | (8) |
Net interest revenue after provision for credit losses | $ 810 | $ 834 | $ 919 | $ 1,644 | $ 1,843 |
Employee benefit plans (Details
Employee benefit plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Health care benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 1 | 2 | 2 | 3 | 4 |
Expected return on assets | (2) | (2) | (2) | (4) | (4) |
Other | 0 | (1) | 0 | (1) | (1) |
Net periodic benefit (credit) cost | (1) | (1) | 0 | (2) | (1) |
Domestic | Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0 | 0 | 0 | 0 | 0 |
Interest cost | 45 | 44 | 42 | 89 | 85 |
Expected return on assets | (84) | (84) | (85) | (168) | (170) |
Other | 13 | 13 | 17 | 26 | 34 |
Net periodic benefit (credit) cost | (26) | (27) | (26) | (53) | (51) |
Foreign | Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 3 | 3 | 7 | 6 | 14 |
Interest cost | 8 | 8 | 8 | 16 | 16 |
Expected return on assets | (12) | (11) | (14) | (23) | (29) |
Other | 1 | 0 | 6 | 1 | 12 |
Net periodic benefit (credit) cost | $ 0 | $ 0 | $ 7 | $ 0 | $ 13 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Provision for income taxes | $ 264 | $ 237 | $ 286 | $ 501 | $ 568 |
Effective tax rate | 20.50% | 19.90% | 20.50% | ||
Tax reserves | $ 135 | $ 105 | 135 | ||
Impact on effective tax rate if tax reserves were unnecessary | 135 | 135 | |||
Accrued interest, related to income taxes in the balance sheet | 24 | 24 | |||
Additional tax expense related to interest | 6 | $ 2 | |||
Reasonably possible decrease in uncertain tax positions within the next 12 months, if a re-evaluation is required | $ 56 | $ 56 |
Variable interest entities an_3
Variable interest entities and securitization - Assets and Liabilities of VIEs (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Nonredeemable noncontrolling interests | $ 166 | $ 101 |
VME classification of carrying amount, assets | 74 | 253 |
VME classification of carrying amount, liabilities | 4 | 2 |
Noncontrolling interest in VME | 1 | 1 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Trading assets | 714 | 643 |
Other assets | 23 | 220 |
Total assets | 737 | 863 |
Other liabilities | 389 | 373 |
Total liabilities | 389 | 373 |
Nonredeemable noncontrolling interests | 166 | 101 |
Variable Interest Entity, Primary Beneficiary | Investment Management funds | ||
Variable Interest Entity [Line Items] | ||
Trading assets | 314 | 243 |
Other assets | 23 | 220 |
Total assets | 337 | 463 |
Other liabilities | 6 | 2 |
Total liabilities | 6 | 2 |
Nonredeemable noncontrolling interests | 166 | 101 |
Variable Interest Entity, Primary Beneficiary | Securitization | ||
Variable Interest Entity [Line Items] | ||
Trading assets | 400 | 400 |
Other assets | 0 | 0 |
Total assets | 400 | 400 |
Other liabilities | 383 | 371 |
Total liabilities | 383 | 371 |
Nonredeemable noncontrolling interests | $ 0 | $ 0 |
Variable interest entities an_4
Variable interest entities and securitization - Non-consolidated VIEs (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Securities available-for-sale | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 214 | $ 214 |
Liabilities | 0 | 0 |
Maximum loss exposure | 214 | 214 |
Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 2,496 | 2,450 |
Liabilities | 500 | 479 |
Maximum loss exposure | $ 2,996 | $ 2,929 |
Preferred stock - Narrative (De
Preferred stock - Narrative (Details) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Stockholders' Equity Note [Abstract] | ||
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock - Summary (Deta
Preferred stock - Summary (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
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] | ||
Per annum dividend rate description | Greater of (i) three-month LIBOR plus 0.565% for the related distribution period; or (ii) 4.000% | |
Per annum dividend rate | 4.00% | |
Total shares issued and outstanding (shares) | 5,001 | 5,001 |
Carrying value | $ 500 | $ 500 |
Liquidation preference per share (usd per share) | $ 100,000 | |
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] | ||
Per annum dividend rate | 5.20% | |
Total shares issued and outstanding (shares) | 5,825 | 5,825 |
Carrying value | $ 568 | $ 568 |
Liquidation preference per share (usd per share) | $ 100,000 | |
Series D Noncumulative Perpetual Preferred Stock | ||
Class of Stock [Line Items] | ||
Per annum dividend rate description | 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% | |
Total shares issued and outstanding (shares) | 5,000 | 5,000 |
Carrying value | $ 494 | $ 494 |
Liquidation preference per share (usd per share) | $ 100,000 | |
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 description | 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% | |
Total shares issued and outstanding (shares) | 10,000 | 10,000 |
Carrying value | $ 990 | $ 990 |
Liquidation preference per share (usd per share) | $ 100,000 | |
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] | ||
Per annum dividend rate description | 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% | |
Total shares issued and outstanding (shares) | 10,000 | 10,000 |
Carrying value | $ 990 | $ 990 |
Liquidation preference per share (usd per share) | $ 100,000 | |
Series F Noncumulative Perpetual Preferred Stock | LIBOR | ||
Class of Stock [Line Items] | ||
Preferred stock, basis spread on variable rate | 3.131% |
Preferred stock - Summary of Pr
Preferred stock - Summary of Preferred Dividends Paid (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Class of Stock [Line Items] | |||||
Preferred dividends paid | $ 48 | $ 36 | $ 48 | $ 84 | $ 84 |
Series A Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Depositary shares per share | 1.00% | 1.00% | |||
Dividend paid per share (usd per share) | $ 1,022.22 | $ 1,000 | $ 1,022.22 | $ 2,022.22 | $ 2,022.22 |
Preferred dividends paid | $ 5 | $ 5 | $ 5 | $ 10 | $ 10 |
Series C Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Depositary shares per share | 0.025% | 0.025% | |||
Dividend paid per share (usd per share) | $ 1,300 | $ 1,300 | $ 1,300 | $ 2,600 | $ 2,600 |
Preferred dividends paid | $ 7 | $ 8 | $ 7 | $ 15 | $ 15 |
Series D Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Depositary shares per share | 1.00% | 1.00% | |||
Dividend paid per share (usd per share) | $ 2,250 | $ 2,250 | $ 2,250 | $ 2,250 | |
Preferred dividends paid | $ 11 | 0 | $ 11 | $ 11 | $ 11 |
Series E Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Depositary shares per share | 1.00% | 1.00% | |||
Dividend paid per share (usd per share) | $ 2,475 | $ 2,475 | $ 2,475 | $ 2,475 | |
Preferred dividends paid | $ 25 | $ 0 | $ 25 | $ 25 | $ 25 |
Series F Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Depositary shares per share | 1.00% | 1.00% | |||
Dividend paid per share (usd per share) | $ 2,312.50 | $ 2,312.50 | $ 2,312.50 | ||
Preferred dividends paid | $ 0 | $ 23 | $ 0 | $ 23 | $ 23 |
Other comprehensive income (l_3
Other comprehensive income (loss) - Components (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Pre-tax amount | ||||||
Total other comprehensive income (loss), Pre-tax amount | $ 420 | $ 357 | $ (402) | $ 777 | $ (475) | |
Tax (expense) benefit | ||||||
Total other comprehensive income (loss), Tax (expense) benefit | (118) | (84) | (60) | (202) | 34 | |
After-tax amount | ||||||
Total other comprehensive income (loss) income, net of tax | [1] | 302 | 273 | (462) | 575 | (441) |
Foreign currency translation | ||||||
Pre-tax amount | ||||||
Other comprehensive income (loss), Pre-tax amount | 29 | 27 | (302) | 56 | (101) | |
Total other comprehensive income (loss), Pre-tax amount | 29 | 27 | (302) | 56 | (101) | |
Tax (expense) benefit | ||||||
Other comprehensive income (loss), Tax (expense) benefit | (19) | 2 | (98) | (17) | (55) | |
Total other comprehensive income (loss), Tax (expense) benefit | (19) | 2 | (98) | (17) | (55) | |
After-tax amount | ||||||
Other comprehensive income (loss), After-tax amount | 10 | 29 | (400) | 39 | (156) | |
Total other comprehensive income (loss) income, net of tax | 10 | 29 | (400) | 39 | (156) | |
Unrealized gain (loss) on assets available-for-sale | ||||||
Pre-tax amount | ||||||
Other comprehensive income (loss), Pre-tax amount | 384 | 322 | (103) | 706 | (445) | |
Reclassification adjustment, Pre-tax amount | (7) | (1) | (1) | (8) | 48 | |
Total other comprehensive income (loss), Pre-tax amount | 377 | 321 | (104) | 698 | (397) | |
Tax (expense) benefit | ||||||
Other comprehensive income (loss), Tax (expense) benefit | (97) | (83) | 39 | (180) | 106 | |
Reclassification adjustment, Tax (expense) benefit | 2 | 0 | 1 | 2 | (11) | |
Total other comprehensive income (loss), Tax (expense) benefit | (95) | (83) | 40 | (178) | 95 | |
After-tax amount | ||||||
Other comprehensive income (loss), After-tax amount | 287 | 239 | (64) | 526 | (339) | |
Reclassification adjustment, After-tax amount | (5) | (1) | 0 | (6) | 37 | |
Total other comprehensive income (loss) income, net of tax | 282 | 238 | (64) | 520 | (302) | |
Defined benefit plans | ||||||
Pre-tax amount | ||||||
Total other comprehensive income (loss), Pre-tax amount | 12 | 2 | 22 | 14 | 44 | |
Tax (expense) benefit | ||||||
Total other comprehensive income (loss), Tax (expense) benefit | (2) | (1) | (6) | (3) | (11) | |
After-tax amount | ||||||
Total other comprehensive income (loss) income, net of tax | 10 | 1 | 16 | 11 | 33 | |
Net (loss) gain arising during the period | ||||||
Pre-tax amount | ||||||
Other comprehensive income (loss), Pre-tax amount | 0 | (11) | 0 | (11) | 0 | |
Tax (expense) benefit | ||||||
Other comprehensive income (loss), Tax (expense) benefit | 0 | 2 | 0 | 2 | 0 | |
After-tax amount | ||||||
Other comprehensive income (loss), After-tax amount | 0 | (9) | 0 | (9) | 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 | 12 | 13 | 22 | 25 | 44 | |
Tax (expense) benefit | ||||||
Reclassification adjustment, Tax (expense) benefit | (2) | (3) | (6) | (5) | (11) | |
After-tax amount | ||||||
Reclassification adjustment, After-tax amount | 10 | 10 | 16 | 20 | 33 | |
Unrealized gain (loss) on cash flow hedges | ||||||
Pre-tax amount | ||||||
Other comprehensive income (loss), Pre-tax amount | 2 | 6 | (17) | 8 | (10) | |
Reclassification adjustment, Pre-tax amount | 0 | 1 | (1) | 1 | (11) | |
Total other comprehensive income (loss), Pre-tax amount | 2 | 7 | (18) | 9 | (21) | |
Tax (expense) benefit | ||||||
Other comprehensive income (loss), Tax (expense) benefit | (2) | (4) | 3 | (6) | 2 | |
Reclassification adjustment, Tax (expense) benefit | 0 | 2 | 1 | 2 | 3 | |
Total other comprehensive income (loss), Tax (expense) benefit | (2) | (2) | 4 | (4) | 5 | |
After-tax amount | ||||||
Other comprehensive income (loss), After-tax amount | 0 | 2 | (14) | 2 | (8) | |
Reclassification adjustment, After-tax amount | 0 | 3 | 0 | 3 | (8) | |
Total other comprehensive income (loss) income, net of tax | 0 | 5 | (14) | 5 | (16) | |
Unrealized gain (loss) on cash flow hedges | Other revenue | ||||||
Pre-tax amount | ||||||
Reclassification adjustment, Pre-tax amount | 0 | 0 | 1 | 0 | (3) | |
Tax (expense) benefit | ||||||
Reclassification adjustment, Tax (expense) benefit | 0 | 0 | 0 | 0 | 1 | |
After-tax amount | ||||||
Reclassification adjustment, After-tax amount | 0 | 0 | 1 | 0 | (2) | |
Unrealized gain (loss) on cash flow hedges | Staff expense | ||||||
Pre-tax amount | ||||||
Reclassification adjustment, Pre-tax amount | 0 | 1 | (2) | 1 | (8) | |
Tax (expense) benefit | ||||||
Reclassification adjustment, Tax (expense) benefit | 0 | 2 | 1 | 2 | 2 | |
After-tax amount | ||||||
Reclassification adjustment, After-tax amount | $ 0 | $ 3 | $ (1) | $ 3 | $ (6) | |
[1] | Other comprehensive income (loss) attributable to The Bank of New York Mellon Corporation shareholders was $302 million for the quarter ended June 30, 2019 , $271 million for the quarter ended March 31, 2019 , $(452) million for the quarter ended June 30, 2018 , $573 million for the six months ended June 30, 2019 and $(436) million for the six months ended June 30, 2018 . |
Fair value measurement - Assets
Fair value measurement - Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | $ 85,593 | $ 85,809 |
Trading assets: | ||
Total derivative assets | 2,985 | 2,815 |
Effect of master netting agreements | (5,568) | (5,939) |
Trading liabilities: | ||
Derivative liabilities | 2,622 | 2,368 |
Effect of master netting agreements | (5,297) | (6,170) |
Long-term debt | 383 | 371 |
Investment management funds | ||
Trading assets: | ||
Trading assets | 314 | 243 |
Other assets | 23 | 220 |
Total assets | 337 | 463 |
Trading liabilities: | ||
Total liabilities | 6 | 2 |
Interest rate contracts | ||
Trading assets: | ||
Effect of master netting agreements | (2,347) | (2,202) |
Trading liabilities: | ||
Effect of master netting agreements | (2,637) | (2,508) |
Foreign exchange contracts | ||
Trading assets: | ||
Effect of master netting agreements | (3,213) | (3,724) |
Trading liabilities: | ||
Effect of master netting agreements | (2,660) | (3,626) |
Equity contracts | ||
Trading assets: | ||
Effect of master netting agreements | (8) | (13) |
Trading liabilities: | ||
Effect of master netting agreements | 0 | (36) |
Agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 26,204 | 25,308 |
U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 14,197 | 20,076 |
Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 12,342 | 10,750 |
Agency commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 9,678 | 9,691 |
Supranational | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 3,914 | 2,984 |
CLOs | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 3,649 | 3,364 |
Foreign covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 3,398 | 2,878 |
U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 2,650 | 1,657 |
Other ABS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 2,470 | 1,773 |
State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 1,280 | 2,247 |
Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 1,221 | 1,325 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 905 | 1,054 |
Other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 1,680 | 1,238 |
Operating segments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 85,593 | 85,809 |
Trading assets: | ||
Trading assets | 8,629 | 7,035 |
Other assets | 591 | 742 |
Trading liabilities: | ||
Long-term debt | 383 | 371 |
Operating segments | Investment management funds | ||
Trading assets: | ||
Total assets | 337 | 463 |
Trading liabilities: | ||
Total liabilities | 6 | 2 |
Assets measured at fair value on a recurring basis | ||
Trading assets: | ||
Effect of master netting agreements | (5,568) | (5,939) |
Total assets | 95,150 | 94,049 |
Trading liabilities: | ||
Effect of master netting agreements | (5,297) | (6,170) |
Total liabilities | 4,492 | 3,940 |
Assets measured at fair value on a recurring basis | Level 1 | ||
Trading assets: | ||
Total assets | $ 25,968 | $ 28,898 |
Percentage of total assets prior to netting | 26.00% | 29.00% |
Trading liabilities: | ||
Total liabilities | $ 1,298 | $ 1,096 |
Percentage of total liabilities prior to netting | 13.00% | 11.00% |
Assets measured at fair value on a recurring basis | Level 2 | ||
Trading assets: | ||
Total assets | $ 74,572 | $ 70,875 |
Percentage of total assets prior to netting | 74.00% | 71.00% |
Trading liabilities: | ||
Total liabilities | $ 8,491 | $ 9,014 |
Percentage of total liabilities prior to netting | 87.00% | 89.00% |
Assets measured at fair value on a recurring basis | Level 2 | Grantor Trust | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | $ 753 | $ 832 |
Assets measured at fair value on a recurring basis | Level 3 | ||
Trading assets: | ||
Total assets | $ 0 | $ 0 |
Percentage of total assets prior to netting | 0.00% | 0.00% |
Trading liabilities: | ||
Total liabilities | $ 0 | $ 0 |
Percentage of total liabilities prior to netting | 0.00% | 0.00% |
Assets measured at fair value on a recurring basis | Operating segments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | $ 85,593 | $ 85,809 |
Trading assets: | ||
Debt instruments | 3,789 | 3,395 |
Equity instruments | 2,011 | 1,114 |
Effect of master netting agreements | (5,568) | (5,939) |
Trading assets | 8,629 | 7,035 |
Other assets | 257 | 238 |
Total assets | 94,813 | 93,586 |
Trading liabilities: | ||
Total trading liabilities | 3,768 | 3,479 |
Effect of master netting agreements | (5,297) | (6,170) |
Long-term debt | 383 | 371 |
Total other liabilities – derivative liabilities designated as hedging | 335 | |
Total liabilities | 4,486 | 3,938 |
Assets measured at fair value on a recurring basis | Operating segments | Investment management funds | ||
Trading assets: | ||
Total assets | 337 | 463 |
Trading liabilities: | ||
Effect of master netting agreements | 0 | |
Total liabilities | 6 | 2 |
Assets measured at fair value on a recurring basis | Operating segments | Interest rate contracts | ||
Trading assets: | ||
Effect of master netting agreements | (2,347) | (2,202) |
Trading liabilities: | ||
Effect of master netting agreements | (2,637) | (2,508) |
Assets measured at fair value on a recurring basis | Operating segments | Foreign exchange contracts | ||
Trading assets: | ||
Effect of master netting agreements | (3,213) | (3,724) |
Trading liabilities: | ||
Effect of master netting agreements | (2,660) | (3,626) |
Assets measured at fair value on a recurring basis | Operating segments | Equity contracts | ||
Trading assets: | ||
Effect of master netting agreements | (8) | (13) |
Trading liabilities: | ||
Effect of master netting agreements | 0 | (36) |
Assets measured at fair value on a recurring basis | Operating segments | Agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 26,204 | 25,308 |
Assets measured at fair value on a recurring basis | Operating segments | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 14,197 | 20,076 |
Assets measured at fair value on a recurring basis | Operating segments | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 12,342 | 10,750 |
Assets measured at fair value on a recurring basis | Operating segments | Agency commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 9,678 | 9,691 |
Assets measured at fair value on a recurring basis | Operating segments | Supranational | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 3,914 | 2,984 |
Assets measured at fair value on a recurring basis | Operating segments | CLOs | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 3,649 | 3,364 |
Assets measured at fair value on a recurring basis | Operating segments | Foreign covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 3,398 | 2,878 |
Assets measured at fair value on a recurring basis | Operating segments | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 2,650 | 1,657 |
Assets measured at fair value on a recurring basis | Operating segments | Other ABS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 2,470 | 1,773 |
Assets measured at fair value on a recurring basis | Operating segments | Non-agency commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 2,005 | 1,464 |
Assets measured at fair value on a recurring basis | Operating segments | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 1,280 | 2,247 |
Assets measured at fair value on a recurring basis | Operating segments | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 1,221 | 1,325 |
Assets measured at fair value on a recurring basis | Operating segments | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 905 | 1,054 |
Assets measured at fair value on a recurring basis | Operating segments | Other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 1,680 | 1,238 |
Assets measured at fair value on a recurring basis | Operating segments | Not designated as hedging | ||
Trading assets: | ||
Total derivative assets | 2,829 | 2,526 |
Trading liabilities: | ||
Derivative liabilities | 2,287 | 2,280 |
Effect of master netting agreements | (5,297) | |
Assets measured at fair value on a recurring basis | Operating segments | Not designated as hedging | Interest rate contracts | ||
Trading assets: | ||
Total derivative assets | 1,921 | 1,388 |
Trading liabilities: | ||
Derivative liabilities | 988 | 608 |
Assets measured at fair value on a recurring basis | Operating segments | Not designated as hedging | Foreign exchange contracts | ||
Trading assets: | ||
Total derivative assets | 870 | 1,083 |
Trading liabilities: | ||
Derivative liabilities | 1,292 | 1,589 |
Assets measured at fair value on a recurring basis | Operating segments | Not designated as hedging | Equity contracts | ||
Trading assets: | ||
Total derivative assets | 38 | 55 |
Trading liabilities: | ||
Derivative liabilities | 7 | 83 |
Assets measured at fair value on a recurring basis | Operating segments | Designated as hedging | ||
Trading assets: | ||
Total derivative assets | 156 | 289 |
Trading liabilities: | ||
Total other liabilities – derivative liabilities designated as hedging | 88 | |
Assets measured at fair value on a recurring basis | Operating segments | Designated as hedging | Interest rate contracts | ||
Trading assets: | ||
Total derivative assets | 23 | |
Trading liabilities: | ||
Derivative liabilities | 311 | 74 |
Assets measured at fair value on a recurring basis | Operating segments | Designated as hedging | Foreign exchange contracts | ||
Trading assets: | ||
Total derivative assets | 156 | 266 |
Trading liabilities: | ||
Derivative liabilities | 24 | 14 |
Assets measured at fair value on a recurring basis | Operating segments | Debt instruments | ||
Trading liabilities: | ||
Total trading liabilities | 1,385 | 1,124 |
Assets measured at fair value on a recurring basis | Operating segments | Equity instruments | ||
Trading liabilities: | ||
Total trading liabilities | 96 | 75 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 22,015 | 26,689 |
Trading assets: | ||
Debt instruments | 1,529 | 801 |
Equity instruments | 2,011 | 1,114 |
Trading assets | 3,554 | 1,931 |
Other assets | 94 | 68 |
Total assets | $ 25,663 | $ 28,688 |
Percentage of total assets prior to netting | 26.00% | 29.00% |
Trading liabilities: | ||
Total trading liabilities | $ 1,297 | $ 1,094 |
Long-term debt | 0 | 0 |
Total other liabilities – derivative liabilities designated as hedging | 0 | |
Total liabilities | $ 1,297 | $ 1,094 |
Percentage of total liabilities prior to netting | 13.00% | 11.00% |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Investment management funds | ||
Trading assets: | ||
Total assets | $ 305 | $ 210 |
Trading liabilities: | ||
Total liabilities | 1 | 2 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 14,197 | 20,076 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 7,818 | 6,613 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Agency commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Supranational | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | CLOs | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Foreign covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Other ABS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Non-agency commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Not designated as hedging | ||
Trading assets: | ||
Total derivative assets | 14 | 16 |
Trading liabilities: | ||
Derivative liabilities | 28 | 13 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Not designated as hedging | Interest rate contracts | ||
Trading assets: | ||
Total derivative assets | 14 | 7 |
Trading liabilities: | ||
Derivative liabilities | 25 | 12 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Not designated as hedging | Foreign exchange contracts | ||
Trading assets: | ||
Total derivative assets | 0 | 0 |
Trading liabilities: | ||
Derivative liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Not designated as hedging | Equity contracts | ||
Trading assets: | ||
Total derivative assets | 0 | 9 |
Trading liabilities: | ||
Derivative liabilities | 3 | 1 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Designated as hedging | ||
Trading assets: | ||
Total derivative assets | 0 | 0 |
Trading liabilities: | ||
Total other liabilities – derivative liabilities designated as hedging | 0 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Designated as hedging | Interest rate contracts | ||
Trading assets: | ||
Total derivative assets | 0 | |
Trading liabilities: | ||
Derivative liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Designated as hedging | Foreign exchange contracts | ||
Trading assets: | ||
Total derivative assets | 0 | 0 |
Trading liabilities: | ||
Derivative liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Debt instruments | ||
Trading liabilities: | ||
Total trading liabilities | 1,173 | 1,006 |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Equity instruments | ||
Trading liabilities: | ||
Total trading liabilities | 96 | 75 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 63,578 | 59,120 |
Trading assets: | ||
Debt instruments | 2,260 | 2,594 |
Equity instruments | 0 | 0 |
Trading assets | 10,643 | 11,043 |
Other assets | 163 | 170 |
Total assets | $ 74,540 | $ 70,622 |
Percentage of total assets prior to netting | 74.00% | 71.00% |
Trading liabilities: | ||
Total trading liabilities | $ 7,768 | $ 8,555 |
Long-term debt | 383 | 371 |
Total other liabilities – derivative liabilities designated as hedging | 335 | |
Total liabilities | $ 8,486 | $ 9,014 |
Percentage of total liabilities prior to netting | 87.00% | 89.00% |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Investment management funds | ||
Trading assets: | ||
Total assets | $ 32 | $ 253 |
Trading liabilities: | ||
Total liabilities | 5 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 26,204 | 25,308 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 4,524 | 4,137 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Agency commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 9,678 | 9,691 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Supranational | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 3,914 | 2,984 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | CLOs | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 3,649 | 3,364 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Foreign covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 3,398 | 2,878 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 2,650 | 1,657 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Other ABS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 2,470 | 1,773 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Non-agency commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 2,005 | 1,464 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 1,280 | 2,247 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 1,221 | 1,325 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 905 | 1,054 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 1,680 | 1,238 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Not designated as hedging | ||
Trading assets: | ||
Total derivative assets | 8,383 | 8,449 |
Trading liabilities: | ||
Derivative liabilities | 7,556 | 8,437 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Not designated as hedging | Interest rate contracts | ||
Trading assets: | ||
Total derivative assets | 4,254 | 3,583 |
Trading liabilities: | ||
Derivative liabilities | 3,600 | 3,104 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Not designated as hedging | Foreign exchange contracts | ||
Trading assets: | ||
Total derivative assets | 4,083 | 4,807 |
Trading liabilities: | ||
Derivative liabilities | 3,952 | 5,215 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Not designated as hedging | Equity contracts | ||
Trading assets: | ||
Total derivative assets | 46 | 59 |
Trading liabilities: | ||
Derivative liabilities | 4 | 118 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Designated as hedging | ||
Trading assets: | ||
Total derivative assets | 156 | 289 |
Trading liabilities: | ||
Total other liabilities – derivative liabilities designated as hedging | 88 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Designated as hedging | Interest rate contracts | ||
Trading assets: | ||
Total derivative assets | 23 | |
Trading liabilities: | ||
Derivative liabilities | 311 | 74 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Designated as hedging | Foreign exchange contracts | ||
Trading assets: | ||
Total derivative assets | 156 | 266 |
Trading liabilities: | ||
Derivative liabilities | 24 | 14 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Debt instruments | ||
Trading liabilities: | ||
Total trading liabilities | 212 | 118 |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Equity instruments | ||
Trading liabilities: | ||
Total trading liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Trading assets: | ||
Debt instruments | 0 | 0 |
Equity instruments | 0 | 0 |
Trading assets | 0 | 0 |
Other assets | 0 | 0 |
Total assets | $ 0 | $ 0 |
Percentage of total assets prior to netting | 0.00% | 0.00% |
Trading liabilities: | ||
Total trading liabilities | $ 0 | $ 0 |
Long-term debt | 0 | 0 |
Total other liabilities – derivative liabilities designated as hedging | 0 | |
Total liabilities | $ 0 | $ 0 |
Percentage of total liabilities prior to netting | 0.00% | 0.00% |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Investment management funds | ||
Trading assets: | ||
Total assets | $ 0 | $ 0 |
Trading liabilities: | ||
Total liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Agency commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Supranational | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | CLOs | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Foreign covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Other ABS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Non-agency commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Not designated as hedging | ||
Trading assets: | ||
Total derivative assets | 0 | 0 |
Trading liabilities: | ||
Derivative liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Not designated as hedging | Interest rate contracts | ||
Trading assets: | ||
Total derivative assets | 0 | 0 |
Trading liabilities: | ||
Derivative liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Not designated as hedging | Foreign exchange contracts | ||
Trading assets: | ||
Total derivative assets | 0 | 0 |
Trading liabilities: | ||
Derivative liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Not designated as hedging | Equity contracts | ||
Trading assets: | ||
Total derivative assets | 0 | 0 |
Trading liabilities: | ||
Derivative liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Designated as hedging | ||
Trading assets: | ||
Total derivative assets | 0 | 0 |
Trading liabilities: | ||
Total other liabilities – derivative liabilities designated as hedging | 0 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Designated as hedging | Interest rate contracts | ||
Trading assets: | ||
Total derivative assets | 0 | |
Trading liabilities: | ||
Derivative liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Designated as hedging | Foreign exchange contracts | ||
Trading assets: | ||
Total derivative assets | 0 | 0 |
Trading liabilities: | ||
Derivative liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Debt instruments | ||
Trading liabilities: | ||
Total trading liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Equity instruments | ||
Trading liabilities: | ||
Total trading liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Operating segments | NAV | ||
Trading assets: | ||
Assets measured at NAV | $ 178 | $ 215 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Non-agency RMBS | Origination in 2004 and Earlier, 2005, 2006 and 2007 through 2019 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 753 | $ 832 |
Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 1,221 | $ 1,325 |
Non-agency RMBS | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 11.00% | 9.00% |
Non-agency RMBS | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 10.00% | 11.00% |
Non-agency RMBS | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 5.00% | 5.00% |
Non-agency RMBS | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 74.00% | 75.00% |
Non-agency RMBS | 2007-2019 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 311 | $ 315 |
Non-agency RMBS | 2007-2019 | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 23.00% | 15.00% |
Non-agency RMBS | 2007-2019 | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 2.00% | 2.00% |
Non-agency RMBS | 2007-2019 | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 3.00% | 3.00% |
Non-agency RMBS | 2007-2019 | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 72.00% | 80.00% |
Non-agency RMBS | 2006 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 330 | $ 363 |
Non-agency RMBS | 2006 | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Non-agency RMBS | 2006 | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 19.00% | 19.00% |
Non-agency RMBS | 2006 | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 1.00% | 0.00% |
Non-agency RMBS | 2006 | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 80.00% | 81.00% |
Non-agency RMBS | 2005 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 356 | $ 396 |
Non-agency RMBS | 2005 | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 8.00% | 9.00% |
Non-agency RMBS | 2005 | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 1.00% | 1.00% |
Non-agency RMBS | 2005 | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 8.00% | 7.00% |
Non-agency RMBS | 2005 | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 83.00% | 83.00% |
Non-agency RMBS | 2004 and earlier | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 224 | $ 251 |
Non-agency RMBS | 2004 and earlier | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 16.00% | 16.00% |
Non-agency RMBS | 2004 and earlier | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 23.00% | 24.00% |
Non-agency RMBS | 2004 and earlier | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 11.00% | 11.00% |
Non-agency RMBS | 2004 and earlier | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 50.00% | 49.00% |
Non-agency commercial MBS | Non-agency commercial MBS originated in 2009-2019 | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 2,005 | $ 1,464 |
Non-agency commercial MBS | Non-agency commercial MBS originated in 2009-2019 | AAA/ AA- | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 98.00% | 96.00% |
Non-agency commercial MBS | Non-agency commercial MBS originated in 2009-2019 | A/ A- | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 2.00% | 4.00% |
Non-agency commercial MBS | Non-agency commercial MBS originated in 2009-2019 | BBB/ BBB- | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Non-agency commercial MBS | Non-agency commercial MBS originated in 2009-2019 | BB and lower | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 3,398 | $ 2,878 |
Foreign covered bonds | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Foreign covered bonds | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | Canada | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 1,639 | $ 1,524 |
Foreign covered bonds | Canada | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Foreign covered bonds | Canada | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | Canada | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | Canada | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | United Kingdom | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 798 | $ 529 |
Foreign covered bonds | United Kingdom | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Foreign covered bonds | United Kingdom | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | United Kingdom | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | United Kingdom | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | Australia | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 414 | $ 333 |
Foreign covered bonds | Australia | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Foreign covered bonds | Australia | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | Australia | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | Australia | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | Sweden | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 274 | $ 187 |
Foreign covered bonds | Sweden | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Foreign covered bonds | Sweden | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | Sweden | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | Sweden | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 273 | $ 305 |
Foreign covered bonds | Other | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Foreign covered bonds | Other | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | Other | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | Other | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 12,342 | $ 10,750 |
Sovereign Debt | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 75.00% | 72.00% |
Sovereign Debt | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 3.00% | 6.00% |
Sovereign Debt | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 21.00% | 21.00% |
Sovereign Debt | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 1.00% | 1.00% |
Sovereign Debt | Canada | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 485 | $ 378 |
Sovereign Debt | Canada | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Sovereign Debt | Canada | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Canada | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Canada | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | United Kingdom | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 3,133 | $ 2,153 |
Sovereign Debt | United Kingdom | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Sovereign Debt | United Kingdom | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | United Kingdom | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | United Kingdom | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 365 | $ 426 |
Sovereign Debt | Other | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 68.00% | 75.00% |
Sovereign Debt | Other | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 1.00% | 0.00% |
Sovereign Debt | Other | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Other | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 31.00% | 25.00% |
Sovereign Debt | Germany | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 2,198 | $ 1,826 |
Sovereign Debt | Germany | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Sovereign Debt | Germany | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Germany | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Germany | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | France | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 1,424 | $ 1,548 |
Sovereign Debt | France | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Sovereign Debt | France | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | France | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | France | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Spain | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 1,309 | $ 1,365 |
Sovereign Debt | Spain | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Spain | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 2.00% | 0.00% |
Sovereign Debt | Spain | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 98.00% | 100.00% |
Sovereign Debt | Spain | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Italy | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 1,302 | $ 939 |
Sovereign Debt | Italy | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Italy | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Italy | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Sovereign Debt | Italy | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Netherlands | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 811 | $ 875 |
Sovereign Debt | Netherlands | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Sovereign Debt | Netherlands | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Netherlands | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Netherlands | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Hong Kong | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 504 | $ 450 |
Sovereign Debt | Hong Kong | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Sovereign Debt | Hong Kong | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Hong Kong | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Hong Kong | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Singapore | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 443 | $ 165 |
Sovereign Debt | Singapore | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Sovereign Debt | Singapore | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Singapore | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Singapore | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Ireland | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 368 | $ 625 |
Sovereign Debt | Ireland | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Ireland | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Sovereign Debt | Ireland | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Ireland | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign debt/sovereign guaranteed | Brazil | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 113 | $ 107 |
Fair value measurement - Asse_2
Fair value measurement - Assets on Nonrecurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
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 | 62 | 68 |
Other assets | 63 | 57 |
Total assets | 125 | 125 |
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 | 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 | 58 | 64 |
Other assets | 63 | 57 |
Total assets | 121 | 121 |
Measured at fair value on a nonrecurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 4 | 4 |
Other assets | 0 | 0 |
Total assets | $ 4 | $ 4 |
Fair value measurement - Financ
Fair value measurement - Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Securities held-to-maturity | $ 34,695 | $ 33,302 |
Liabilities: | ||
Long-term debt | 383 | 371 |
Estimated fair value | ||
Assets: | ||
Interest-bearing deposits with the Federal Reserve and other central banks | 69,700 | 67,988 |
Interest-bearing deposits with banks | 15,515 | 14,168 |
Federal funds sold and securities purchased under resale agreements | 61,201 | 46,795 |
Securities held-to-maturity | 34,695 | 33,302 |
Loans | 51,425 | 55,142 |
Other financial assets | 6,872 | 7,247 |
Total assets | 239,408 | 224,642 |
Liabilities: | ||
Noninterest-bearing deposits | 58,255 | 70,783 |
Interest-bearing deposits | 193,698 | 165,914 |
Federal funds purchased and securities sold under repurchase agreements | 11,757 | 14,243 |
Payables to customers and broker-dealers | 18,946 | 19,731 |
Commercial paper | 8,894 | 1,939 |
Borrowings | 2,283 | 3,584 |
Long-term debt | 28,365 | 28,347 |
Total liabilities | 322,198 | 304,541 |
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 | 5,344 | 5,512 |
Loans | 0 | 0 |
Other financial assets | 5,556 | 5,864 |
Total assets | 10,900 | 11,376 |
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 | 69,700 | 67,988 |
Interest-bearing deposits with banks | 15,515 | 14,168 |
Federal funds sold and securities purchased under resale agreements | 61,201 | 46,795 |
Securities held-to-maturity | 29,351 | 27,790 |
Loans | 51,425 | 55,142 |
Other financial assets | 1,316 | 1,383 |
Total assets | 228,508 | 213,266 |
Liabilities: | ||
Noninterest-bearing deposits | 58,255 | 70,783 |
Interest-bearing deposits | 193,698 | 165,914 |
Federal funds purchased and securities sold under repurchase agreements | 11,757 | 14,243 |
Payables to customers and broker-dealers | 18,946 | 19,731 |
Commercial paper | 8,894 | 1,939 |
Borrowings | 2,283 | 3,584 |
Long-term debt | 28,365 | 28,347 |
Total liabilities | 322,198 | 304,541 |
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 | 69,700 | 67,988 |
Interest-bearing deposits with banks | 15,491 | 14,148 |
Federal funds sold and securities purchased under resale agreements | 61,201 | 46,795 |
Securities held-to-maturity | 34,549 | 33,982 |
Loans | 51,025 | 55,161 |
Other financial assets | 6,872 | 7,247 |
Total assets | 238,838 | 225,321 |
Liabilities: | ||
Noninterest-bearing deposits | 58,255 | 70,783 |
Interest-bearing deposits | 194,622 | 167,995 |
Federal funds purchased and securities sold under repurchase agreements | 11,757 | 14,243 |
Payables to customers and broker-dealers | 18,946 | 19,731 |
Commercial paper | 8,894 | 1,939 |
Borrowings | 2,283 | 3,584 |
Long-term debt | 27,820 | 28,792 |
Total liabilities | $ 322,577 | $ 307,067 |
Fair value measurement - Deriva
Fair value measurement - Derivatives (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Securities available-for-sale | ||
Derivative [Line Items] | ||
Carrying amount | $ 18,347 | $ 19,349 |
Notional amount of hedge | 18,283 | 19,437 |
Unrealized Gain | 0 | 24 |
Unrealized (Loss) | (311) | (74) |
Long-term debt | ||
Derivative [Line Items] | ||
Carrying amount | 15,344 | 16,147 |
Notional amount of hedge | 15,050 | 16,600 |
Unrealized Gain | 0 | 0 |
Unrealized (Loss) | 0 | 0 |
Foreign exchange contracts | Fair value hedging | Securities available-for-sale | ||
Derivative [Line Items] | ||
Notional amount of hedge | 145 | 147 |
Unrealized Gain | 1 | |
Unrealized (Loss) | (1) | |
Not designated as hedging | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount of hedge | 850,236 | 831,730 |
Securities available-for-sale | Not designated as hedging | Foreign exchange contracts | Fair value hedging | Securities available-for-sale | ||
Derivative [Line Items] | ||
Carrying amount | $ 145 | $ 148 |
Fair value option - Assets and
Fair value option - Assets and Liabilities (Details) - Investment Management funds - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Assets of consolidated investment management funds: | ||
Trading assets | $ 314 | $ 243 |
Other assets, fair value | 23 | 220 |
Total assets | 337 | 463 |
Liabilities of consolidated investment management funds: | ||
Other liabilities | 6 | 2 |
Total liabilities | $ 6 | $ 2 |
Fair value option - Narrative (
Fair value option - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Fair value option of long-term debt | $ 240 | |
Long-term debt, fair value | $ 383 | $ 371 |
Fair value option - Changes in
Fair value option - Changes in Fair Value of Loans and Long-term Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Long-term debt | Foreign exchange and other trading revenue | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gain (loss) change in fair value | $ (7) | $ (5) | $ 0 | $ (12) | $ 4 |
Derivative instruments - Narrat
Derivative instruments - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Counterparty default losses recorded | $ 0 | |||||
Hedging derivatives, maturities, maximum | 1 year | |||||
Non-derivative financial instruments designated as hedges of net investments in foreign subsidiaries were all long-term liabilities of BNY Mellon in various currencies | $ 174,000,000 | |||||
Gain or (loss) recognized in income on derivatives | (4,000,000) | $ (6,000,000) | $ 2,000,000 | $ (10,000,000) | $ 25,000,000 | |
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 had fallen below investment grade | 66,000,000 | $ 66,000,000 | $ 100,000,000 | |||
Foreign exchange contracts | Net investment hedging | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedged financial instruments, notional amount of derivative | 7,300,000,000 | 7,300,000,000 | ||||
Foreign exchange contracts | Forecasted Foreign Currency | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Gain (loss) to be reclassified in next 12 months from AOCI to earnings | $ 8,000,000 | |||||
Foreign exchange contracts | Forecasted Foreign Currency | Cash flow hedges | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Original maturities, maximum, of hedged instruments | 12 months | |||||
Hedged financial instruments, notional amount of derivative | 272,000,000 | $ 272,000,000 | ||||
Pre-tax gain (loss) recognized in OCI related to cash flow hedges | 8,000,000 | |||||
Securities available-for-sale | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedged financial instruments, notional amount of derivative | 18,283,000,000 | $ 18,283,000,000 | 19,437,000,000 | |||
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 | 18,100,000,000 | $ 18,100,000,000 | ||||
Hedged financial instruments, notional amount of derivative | 18,100,000,000 | 18,100,000,000 | ||||
Securities available-for-sale | Foreign exchange contracts | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedged financial instruments | 145,000,000 | 145,000,000 | ||||
Securities available-for-sale | Foreign exchange contracts | Fair value hedging | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedged financial instruments, notional amount of derivative | 145,000,000 | 145,000,000 | 147,000,000 | |||
Long-term debt | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedged financial instruments | 14,100,000,000 | 14,100,000,000 | ||||
Hedged financial instruments, notional amount of derivative | 15,050,000,000 | 15,050,000,000 | 16,600,000,000 | |||
Long-term debt | Cash flow hedges | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedged financial instruments | 1,000,000,000 | $ 1,000,000,000 | ||||
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 | 14,100,000,000 | $ 14,100,000,000 | ||||
Original maturities, minimum, of hedged instruments | 5 years | |||||
Gain (loss) to be reclassified in next 12 months from AOCI to earnings | $ (2,000,000) | |||||
Long-term debt | Interest rate swap | Cash flow hedges | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedged financial instruments, notional amount of derivative | 1,000,000,000 | 1,000,000,000 | ||||
Pre-tax gain (loss) recognized in OCI related to cash flow hedges | (2,000,000) | |||||
Staff expense | Foreign exchange contracts | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | (1,000,000) | 2,000,000 | (1,000,000) | 8,000,000 | |
Not Designated as Hedging Instrument, Economic Hedge | Staff expense | Equity Swap | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Gain or (loss) recognized in income on derivatives | 5,000,000 | 18,000,000 | $ 2,000,000 | 23,000,000 | $ (1,000,000) | |
Securities available-for-sale | Foreign exchange contracts | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Gain from components excluded from assessment of fair value hedge effectiveness, net | $ 1,000,000 | 1,000,000 | ||||
Securities available-for-sale | Fair value hedging | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | (692,000,000) | (692,000,000) | 125,000,000 | |||
Securities available-for-sale | Terminated hedges | Fair value hedging | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | $ (38,000,000) | $ (38,000,000) | $ 0 |
Derivative instruments - Gains
Derivative instruments - Gains (Losses) Related to Hedging Derivative Portfolio Recognized in the Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(Losses) gains recognized in the consolidated income statement due to fair value and cash flow hedging relationships | $ (4) | $ (6) | $ 2 | $ (10) | $ 25 |
Interest rate contracts | Long-term debt | Interest expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) recognized on derivatives | 300 | 185 | (131) | 485 | (509) |
Gain or (loss) recognized on hedged item | (298) | (184) | 129 | (482) | 506 |
Interest rate contracts | Securities available-for-sale | Interest revenue | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) recognized on derivatives | (486) | (383) | 136 | (869) | 533 |
Gain or (loss) recognized on hedged item | 480 | 376 | (133) | 856 | (516) |
FX contracts | Other revenue | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | 0 | (1) | 0 | 3 |
FX contracts | Staff expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | (1) | 2 | (1) | 8 |
FX contracts | Securities available-for-sale | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain from components excluded from assessment of fair value hedge effectiveness, net | 1 | 1 | |||
FX contracts | Securities available-for-sale | Other revenue | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) recognized on derivatives | (5) | 6 | 0 | 1 | 0 |
Gain or (loss) recognized on hedged item | 5 | (5) | $ 0 | 0 | $ 0 |
Long-term debt | Other revenue | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | $ (1) | $ (1) | $ (1) |
Derivative instruments - Impact
Derivative instruments - Impact of Hedging Derivatives Used in Net Investment Hedging Relationships (Details) - FX contracts - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) recognized in accumulated OCI on derivatives | $ 76 | $ (6) | $ 429 | $ 70 | $ 271 |
Net interest revenue | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) reclassified from accumulated OCI into income | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative instruments - Hedged
Derivative instruments - Hedged Items in Fair Value Hedging Relationships (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair value hedging | Long-term debt | ||
Derivative [Line Items] | ||
Carrying amount of hedged asset or liability, Long-term debt | $ 14,344 | $ 16,147 |
Hedge accounting basis adjustment increase (decrease), Long-term debt | 72 | (453) |
Fair value hedging | Long-term debt | Terminated hedges | ||
Derivative [Line Items] | ||
Hedge accounting basis adjustment increase (decrease), Long-term debt | 242 | 284 |
Fair value hedging | Securities available-for-sale | ||
Derivative [Line Items] | ||
Carrying amount of hedged asset or liability, Available-for-sale securities | 18,202 | 19,201 |
Hedge accounting basis adjustment increase (decrease), Available -for-sale securities | 692 | (125) |
Fair value hedging | Securities available-for-sale | Terminated hedges | ||
Derivative [Line Items] | ||
Hedge accounting basis adjustment increase (decrease), Available -for-sale securities | 38 | 0 |
Securities available-for-sale | ||
Derivative [Line Items] | ||
Hedged financial instruments, carrying amount | 18,347 | 19,349 |
Securities available-for-sale | Not designated as hedging | Fair value hedging | Securities available-for-sale | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Hedged financial instruments, carrying amount | $ 145 | $ 148 |
Derivative instruments - Impa_2
Derivative instruments - Impact of Derivative Instruments on the Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Asset derivatives fair value | ||
Total derivatives fair value | $ 8,553 | $ 8,754 |
Effect of master netting agreements | (5,568) | (5,939) |
Fair value after effect of master netting agreements | 2,985 | 2,815 |
Liability derivatives fair value | ||
Total derivatives fair value | 7,919 | 8,538 |
Effect of master netting agreements | (5,297) | (6,170) |
Fair value after effect of master netting agreements | 2,622 | 2,368 |
Derivative asset, collateral, obligation to return cash, offset | 836 | 809 |
Derivative liability, collateral, right to reclaim cash, offset | 565 | 1,040 |
Interest rate contracts | ||
Asset derivatives fair value | ||
Effect of master netting agreements | (2,347) | (2,202) |
Liability derivatives fair value | ||
Effect of master netting agreements | (2,637) | (2,508) |
Foreign exchange contracts | ||
Asset derivatives fair value | ||
Effect of master netting agreements | (3,213) | (3,724) |
Liability derivatives fair value | ||
Effect of master netting agreements | (2,660) | (3,626) |
Equity contracts | ||
Asset derivatives fair value | ||
Effect of master netting agreements | (8) | (13) |
Liability derivatives fair value | ||
Effect of master netting agreements | 0 | (36) |
Designated as hedging | ||
Asset derivatives fair value | ||
Total derivatives fair value | 156 | 289 |
Liability derivatives fair value | ||
Total derivatives fair value | 335 | 88 |
Designated as hedging | Interest rate contracts | ||
Notional value | ||
Notional value | 33,188 | 35,890 |
Asset derivatives fair value | ||
Total derivatives fair value | 0 | 23 |
Liability derivatives fair value | ||
Total derivatives fair value | 311 | 74 |
Designated as hedging | Foreign exchange contracts | ||
Notional value | ||
Notional value | 7,693 | 6,330 |
Asset derivatives fair value | ||
Total derivatives fair value | 156 | 266 |
Liability derivatives fair value | ||
Total derivatives fair value | 24 | 14 |
Not designated as hedging | ||
Asset derivatives fair value | ||
Total derivatives fair value | 8,397 | 8,465 |
Liability derivatives fair value | ||
Total derivatives fair value | 7,584 | 8,450 |
Not designated as hedging | Interest rate contracts | ||
Notional value | ||
Notional value | 302,029 | 248,534 |
Asset derivatives fair value | ||
Total derivatives fair value | 4,268 | 3,590 |
Liability derivatives fair value | ||
Total derivatives fair value | 3,625 | 3,116 |
Not designated as hedging | Foreign exchange contracts | ||
Notional value | ||
Notional value | 850,236 | 831,730 |
Asset derivatives fair value | ||
Total derivatives fair value | 4,083 | 4,807 |
Liability derivatives fair value | ||
Total derivatives fair value | 3,952 | 5,215 |
Not designated as hedging | Equity contracts | ||
Notional value | ||
Notional value | 1,573 | 927 |
Asset derivatives fair value | ||
Total derivatives fair value | 46 | 68 |
Liability derivatives fair value | ||
Total derivatives fair value | 4 | 118 |
Not designated as hedging | Credit contracts | ||
Notional value | ||
Notional value | 165 | 150 |
Asset derivatives fair value | ||
Total derivatives fair value | 0 | 0 |
Liability derivatives fair value | ||
Total derivatives fair value | $ 3 | $ 1 |
Derivative instruments - Revenu
Derivative instruments - Revenue from Foreign Exchange and Other Trading (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Foreign exchange | $ 150 | $ 160 | $ 171 | $ 310 | $ 354 |
Other trading revenue | 16 | 10 | 16 | 26 | 42 |
Total foreign exchange and other trading revenue | $ 166 | $ 170 | $ 187 | $ 336 | $ 396 |
Derivative instruments - Contra
Derivative instruments - Contracts Falling under Early Termination Provisions (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Credit Derivatives [Line Items] | ||
Aggregate fair value of OTC derivatives in net liability positions | $ 3,296 | $ 2,877 |
Collateral posted | 3,443 | 2,801 |
A3 | A- | ||
Credit Derivatives [Line Items] | ||
Aggregate fair value of OTC derivatives in net liability positions | 8 | 15 |
Baa2 | BBB | ||
Credit Derivatives [Line Items] | ||
Aggregate fair value of OTC derivatives in net liability positions | 358 | 116 |
Ba1 | BB plus | ||
Credit Derivatives [Line Items] | ||
Aggregate fair value of OTC derivatives in net liability positions | $ 1,493 | $ 1,041 |
Derivative instruments - Offset
Derivative instruments - Offsetting (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Asset | ||
Derivatives subject to netting arrangements, Gross assets recognized | $ 6,725 | $ 7,101 |
Total derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 5,568 | 5,939 |
Derivatives subject to netting arrangements, Net assets recognized in the balance sheet | 1,157 | 1,162 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 191 | 203 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Derivative assets subject to netting arrangements, Net amount | 966 | 959 |
Total derivatives not subject to netting arrangements | 1,828 | 1,653 |
Total derivatives, Gross assets recognized | 8,553 | 8,754 |
Fair value after effect of master netting agreements | 2,985 | 2,815 |
Total derivatives, Net amount | 2,794 | 2,612 |
Reverse repurchase agreements, Gross assets recognized | 127,691 | 112,245 |
Reverse repurchase agreements, Gross amounts offset in the balance sheet | 78,433 | 76,040 |
Reverse repurchase agreements, Net assets recognized on the balance sheet | 49,258 | 36,205 |
Reverse repurchase agreements, Gross amounts not offset in the balance sheet, Financial instruments | 49,245 | 36,205 |
Reverse repurchase agreements, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Reverse repurchase agreements, Net amount | 13 | 0 |
Securities borrowing, Gross assets recognized | 11,943 | 10,588 |
Securities borrowing, Net assets recognized on the balance sheet | 11,943 | 10,588 |
Securities borrowing, Gross amounts not offset in the balance sheet, Financial instruments | 11,618 | 10,286 |
Securities borrowing, Net amount | 325 | 302 |
Total, Gross assets recognized | 148,187 | 131,587 |
Total, Gross amounts offset in the balance sheet | 84,001 | 81,979 |
Total, Net assets recognized on the balance sheet | 64,186 | 49,608 |
Total, Gross amounts not offset in the balance sheet, Financial instruments | 61,054 | 46,694 |
Total, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Total, Net amount | 3,132 | 2,914 |
Derivative Liability | ||
Derivatives subject to netting arrangements, Gross liabilities recognized | 7,364 | 7,966 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 5,297 | 6,170 |
Derivatives subject to netting arrangements, Net liabilities recognized in the balance sheet | 2,067 | 1,796 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 1,326 | 771 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Derivative liabilities subject to netting arrangements, Net amount | 741 | 1,025 |
Total derivatives not subject to netting arrangements | 555 | 572 |
Total derivatives, Gross liabilities recognized | 7,919 | 8,538 |
Fair value after effect of master netting agreements | 2,622 | 2,368 |
Total derivatives, Net amount | 1,296 | 1,597 |
Repurchase agreements, Gross liabilities recognized | 87,308 | 84,665 |
Repurchase agreements, Gross amounts offset in the balance sheet | 78,433 | 76,040 |
Repurchase agreements, Net liabilities recognized on the balance sheet | 8,875 | 8,625 |
Repurchase agreements, Gross amounts not offset in the balance sheet, Financial instruments | 8,875 | 8,625 |
Repurchase agreements, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Repurchase agreements, Net amount | 0 | 0 |
Securities lending, Gross liabilities recognized | 871 | 997 |
Securities lending, Net liabilities recognized on the balance sheet | 871 | 997 |
Securities lending, Gross amounts not offset in the balance sheet, Financial instruments | 840 | 937 |
Securities lending, Net amount | 31 | 60 |
Total, Gross liabilities recognized | 96,098 | 94,200 |
Total, Gross amounts offset in the balance sheet | 83,730 | 82,210 |
Total, Net liabilities recognized on the balance sheet | 12,368 | 11,990 |
Total, Gross amounts not offset in the balance sheet, Financial instruments | 11,041 | 10,333 |
Total, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Total, Net amount | 1,327 | 1,657 |
Interest rate contracts | ||
Derivative Asset | ||
Derivatives subject to netting arrangements, Gross assets recognized | 2,963 | 2,654 |
Total derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 2,347 | 2,202 |
Derivatives subject to netting arrangements, Net assets recognized in the balance sheet | 616 | 452 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 181 | 133 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Derivative assets subject to netting arrangements, Net amount | 435 | 319 |
Derivative Liability | ||
Derivatives subject to netting arrangements, Gross liabilities recognized | 3,885 | 3,144 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 2,637 | 2,508 |
Derivatives subject to netting arrangements, Net liabilities recognized in the balance sheet | 1,248 | 636 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 1,187 | 547 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Derivative liabilities subject to netting arrangements, Net amount | 61 | 89 |
Foreign exchange contracts | ||
Derivative Asset | ||
Derivatives subject to netting arrangements, Gross assets recognized | 3,729 | 4,409 |
Total derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 3,213 | 3,724 |
Derivatives subject to netting arrangements, Net assets recognized in the balance sheet | 516 | 685 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 10 | 70 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Derivative assets subject to netting arrangements, Net amount | 506 | 615 |
Derivative Liability | ||
Derivatives subject to netting arrangements, Gross liabilities recognized | 3,475 | 4,747 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 2,660 | 3,626 |
Derivatives subject to netting arrangements, Net liabilities recognized in the balance sheet | 815 | 1,121 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 139 | 187 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Derivative liabilities subject to netting arrangements, Net amount | 676 | 934 |
Equity and other contracts | ||
Derivative Asset | ||
Derivatives subject to netting arrangements, Gross assets recognized | 33 | 38 |
Total derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 8 | 13 |
Derivatives subject to netting arrangements, Net assets recognized in the balance sheet | 25 | 25 |
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 | 25 | 25 |
Derivative Liability | ||
Derivatives subject to netting arrangements, Gross liabilities recognized | 4 | 75 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 0 | 36 |
Derivatives subject to netting arrangements, Net liabilities recognized in the balance sheet | 4 | 39 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 0 | 37 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Derivative liabilities subject to netting arrangements, Net amount | $ 4 | $ 2 |
Derivative instruments - Secure
Derivative instruments - Secured Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | $ 87,308 | $ 84,665 |
Securities lending | 871 | 997 |
Total borrowings | 88,179 | 85,662 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 84,258 | 81,615 |
Securities lending | 871 | 997 |
Total borrowings | 85,129 | 82,612 |
Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities lending | 0 | 0 |
Total borrowings | 0 | 0 |
30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 3,050 | 3,050 |
Securities lending | 0 | 0 |
Total borrowings | 3,050 | 3,050 |
U.S. Treasury | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 80,367 | 76,822 |
U.S. Treasury | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 80,367 | 76,822 |
U.S. Treasury | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
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 | 826 | 759 |
Securities lending | 30 | 7 |
U.S. government agencies | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 826 | 759 |
Securities lending | 30 | 7 |
U.S. government agencies | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
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 | 2,205 | 3,188 |
Agency RMBS | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 2,205 | 3,184 |
Agency RMBS | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Agency RMBS | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 4 |
Corporate bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,820 | 1,829 |
Corporate bonds | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 335 | 416 |
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 | 1,485 | 1,413 |
Other debt securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,215 | 1,377 |
Securities lending | 200 | 294 |
Other debt securities | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 284 | 271 |
Securities lending | 200 | 294 |
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 | 931 | 1,106 |
Securities lending | 0 | 0 |
Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 875 | 690 |
Securities lending | 641 | 696 |
Equity securities | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 241 | 163 |
Securities lending | 641 | 696 |
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 | 634 | 527 |
Securities lending | $ 0 | $ 0 |
Commitments and contingent li_3
Commitments and contingent liabilities - Summary of Off-Balance Sheet Credit Risks, Net of Participations (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Securities lending indemnifications, joint venture | $ 62,000 | $ 56,000 |
Invested in reverse repurchase agreements | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Cash collateral invested in indemnified repurchase agreements | 45,000 | 35,000 |
Lending commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit risks | 51,191 | 50,631 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit risks | 2,465 | 2,817 |
Off-balance sheet credit risks participations | 162 | 163 |
Commercial letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit risks | 60 | 165 |
Securities lending indemnifications | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit risks | $ 406,180 | $ 401,504 |
Commitments and contingent li_4
Commitments and contingent liabilities - Narrative (Details) | Jul. 12, 2018claim | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 29, 2016claim | Dec. 17, 2015claim | Jun. 18, 2014trust | Dec. 31, 2009claim |
Commitments and Contingencies Disclosure [Line Items] | |||||||
Lending commitment maturing in less than one year | $ 31,800,000,000 | ||||||
Lending commitment maturing in one to five years | 18,900,000,000 | ||||||
Lending commitment maturing over five years | $ 539,000,000 | ||||||
Collateralization percentage generally required for a securities lending transaction with indemnification against broker default | 102.00% | ||||||
Securities lending indemnifications, secured amount of collateral | $ 425,000,000,000 | $ 420,000,000,000 | |||||
Securities lending indemnifications, joint venture | 62,000,000,000 | 56,000,000,000 | |||||
Securities lending indemnifications, collateral joint venture | 66,000,000,000 | 59,000,000,000 | |||||
Loss contingency, number of MBS trusts (trust) | trust | 233 | ||||||
Matters Related to R. Allen Stanford | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Number of lawsuits or class actions (claim) | claim | 15 | ||||||
Number of claims dismissed (claim) | claim | 6 | ||||||
Matters Related to R. Allen Stanford, Putative Class Action | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Number of lawsuits or class actions (claim) | claim | 2 | ||||||
Brazilian Postalis Litigation | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Number of lawsuits or class actions (claim) | claim | 3 | ||||||
Depositary Receipt Litigation | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Number of lawsuits or class actions (claim) | claim | 4 | ||||||
Maximum | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Loss contingency, aggregate range of reasonable loss (up to) | 930,000,000 | ||||||
Standby letters of credit | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Standby letters of credit (SBLC) collateralized with cash and securities | 219,000,000 | 223,000,000 | |||||
SBLC expiring within one year | 1,600,000,000 | ||||||
SBLC expiring within one to five years | 831,000,000 | ||||||
Off-balance sheet credit risks | 2,465,000,000 | 2,817,000,000 | |||||
Commercial letters of credit | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Off-balance sheet credit risks | 60,000,000 | 165,000,000 | |||||
Unsettled Repurchase Agreements | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Unsettled repurchase and reverse repurchase agreements | 275,000,000 | ||||||
Unsettled Reverse Repurchase Agreements | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Unsettled repurchase and reverse repurchase agreements | 28,400,000,000 | ||||||
Operating segments | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Allowance for lending-related commitments | $ 95,000,000 | $ 106,000,000 |
Commitments and contingent li_5
Commitments and contingent liabilities - Standby Letters of Credits by Investment Grade (Details) - Standby letters of credit | Jun. 30, 2019 | Dec. 31, 2018 |
Investment grade | ||
Concentration Risk [Line Items] | ||
Standby letters of credit by investment grade | 90.00% | 89.00% |
Non-investment grade | ||
Concentration Risk [Line Items] | ||
Standby letters of credit by investment grade | 10.00% | 11.00% |
Commitments and contingent li_6
Commitments and contingent liabilities - Significant Industry Concentrations Related to Credit Exposure (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | $ 52,396 | $ 56,564 |
Financial institutions | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 11,500 | |
Unfunded commitments | 35,600 | |
Total exposure | 47,100 | |
Financial institutions | Securities industry | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 2,500 | |
Unfunded commitments | 24,300 | |
Total exposure | 26,800 | |
Financial institutions | Asset managers | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 1,400 | |
Unfunded commitments | 6,700 | |
Total exposure | 8,100 | |
Financial institutions | Banks | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 6,500 | |
Unfunded commitments | 1,000 | |
Total exposure | 7,500 | |
Financial institutions | Insurance | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 100 | |
Unfunded commitments | 2,400 | |
Total exposure | 2,500 | |
Financial institutions | Government | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 100 | |
Unfunded commitments | 300 | |
Total exposure | 400 | |
Financial institutions | Other | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 900 | |
Unfunded commitments | 900 | |
Total exposure | 1,800 | |
Commercial | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 1,700 | |
Unfunded commitments | 13,600 | |
Total exposure | 15,300 | |
Commercial | Manufacturing | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 700 | |
Unfunded commitments | 4,700 | |
Total exposure | 5,400 | |
Commercial | Services and other | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 700 | |
Unfunded commitments | 3,900 | |
Total exposure | 4,600 | |
Commercial | Energy and utilities | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 300 | |
Unfunded commitments | 3,800 | |
Total exposure | 4,100 | |
Commercial | Media and telecom | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 0 | |
Unfunded commitments | 1,200 | |
Total exposure | $ 1,200 |
Lines of business - Narrative (
Lines of business - Narrative (Details) | 6 Months Ended |
Jun. 30, 2019business | |
Segment Reporting [Abstract] | |
Number of principal businesses (business) | 2 |
Lines of business - Contributio
Lines of business - Contribution of Segments to Overall Profitability (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | |||||
Total fee and other revenue | $ 3,112 | $ 3,032 | $ 3,210 | $ 6,144 | $ 6,480 |
Net interest revenue (expense) | 802 | 841 | 916 | 1,643 | 1,835 |
Provision for credit losses | (8) | 7 | (3) | (1) | (8) |
Income from consolidated investment management funds, net of noncontrolling interests | 1,017 | 946 | 1,103 | 1,963 | 2,274 |
Investment income (loss), net | 10 | 26 | 12 | 36 | 1 |
Net income (loss) attributable to noncontrolling interests | 4 | 10 | 5 | 14 | (4) |
Investment Management | |||||
Segment Reporting Information [Line Items] | |||||
Net income (loss) attributable to noncontrolling interests | (4) | (10) | (7) | 14 | (4) |
Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Total fee and other revenue | 3,118 | 3,048 | 3,215 | 6,166 | 6,485 |
Net interest revenue (expense) | 802 | 841 | 916 | 1,643 | 1,835 |
Total revenue | 3,920 | 3,889 | 4,131 | 7,809 | 8,320 |
Provision for credit losses | (8) | 7 | (3) | (1) | (8) |
Noninterest expense | 2,647 | 2,699 | 2,745 | 5,346 | 5,486 |
Income (loss) before taxes | $ 1,281 | $ 1,183 | $ 1,389 | $ 2,464 | $ 2,842 |
Pre-tax operating margin | 33.00% | 31.00% | 34.00% | 32.00% | 34.00% |
Average assets | $ 342,384 | $ 336,165 | $ 346,328 | $ 339,292 | $ 352,219 |
Net income (loss) attributable to noncontrolling interests | (2) | ||||
Operating segments | Investment Services | |||||
Segment Reporting Information [Line Items] | |||||
Total fee and other revenue | 2,227 | 2,154 | 2,233 | 4,381 | 4,483 |
Net interest revenue (expense) | 775 | 796 | 874 | 1,571 | 1,718 |
Total revenue | 3,002 | 2,950 | 3,107 | 5,952 | 6,201 |
Provision for credit losses | (4) | 8 | 1 | 4 | (6) |
Noninterest expense | 1,954 | 1,969 | 1,967 | 3,923 | 3,916 |
Income (loss) before taxes | $ 1,052 | $ 973 | $ 1,139 | $ 2,025 | $ 2,291 |
Pre-tax operating margin | 35.00% | 33.00% | 37.00% | 34.00% | 37.00% |
Average assets | $ 264,639 | $ 255,891 | $ 264,387 | $ 260,290 | $ 271,203 |
Operating segments | Investment Management | |||||
Segment Reporting Information [Line Items] | |||||
Total fee and other revenue | 850 | 864 | 941 | 1,714 | 1,953 |
Net interest revenue (expense) | 67 | 75 | 77 | 142 | 153 |
Total revenue | 917 | 939 | 1,018 | 1,856 | 2,106 |
Provision for credit losses | (2) | 1 | 2 | (1) | 4 |
Noninterest expense | 654 | 669 | 697 | 1,323 | 1,402 |
Income (loss) before taxes | $ 265 | $ 269 | $ 319 | $ 534 | $ 700 |
Pre-tax operating margin | 29.00% | 29.00% | 31.00% | 29.00% | 33.00% |
Average assets | $ 30,709 | $ 31,857 | $ 31,504 | $ 30,926 | $ 31,732 |
Income from consolidated investment management funds, net of noncontrolling interests | 6 | 16 | 5 | 22 | 5 |
Investment income (loss), net | 10 | 26 | 12 | 36 | 1 |
Net income (loss) attributable to noncontrolling interests | 4 | 10 | 7 | 14 | (4) |
Operating segments | Other | |||||
Segment Reporting Information [Line Items] | |||||
Total fee and other revenue | 41 | 30 | 41 | 71 | 49 |
Net interest revenue (expense) | (40) | (30) | (35) | (70) | (36) |
Total revenue | 1 | 0 | 6 | 1 | 13 |
Provision for credit losses | (2) | (2) | (6) | (4) | (6) |
Noninterest expense | 39 | 61 | 81 | 100 | 168 |
Income (loss) before taxes | (36) | (59) | (69) | (95) | (149) |
Average assets | $ 47,036 | $ 48,417 | $ 50,437 | $ 48,076 | $ 49,284 |
Supplemental information to t_3
Supplemental information to the Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||
Transfers from loans to other assets for other real estate owned | $ 0 | $ 2 |
Change in assets of consolidated investment management funds | 76 | 303 |
Change in liabilities of consolidated investment management funds | 4 | 1 |
Change in nonredeemable noncontrolling interests of consolidated investment management funds | 65 | 264 |
Securities purchased not settled | 1,113 | 400 |
Securities matured not settled | 10 | 25 |
Available-for-sale securities transferred to trading assets | 0 | 963 |
Held-to-maturity securities transferred to available-for-sale | 0 | 1,087 |
Premises and equipment/capitalized software funded by financing lease obligations | 14 | 15 |
Premises and equipment/operating lease obligations | $ 1,272 | $ 0 |
Supplemental information to t_4
Supplemental information to the Consolidated Statement of Cash Flows - Footnote (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Premises and equipment/operating lease obligations | $ 1,272 | $ 0 |
ASU 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Premises and equipment/operating lease obligations | 1,244 | |
New or Modified Leases | ||
Lessee, Lease, Description [Line Items] | ||
Premises and equipment/operating lease obligations | $ 28 |
Uncategorized Items - form10-q2
Label | Element | Value |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 2,036,000,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 1,659,000,000 |
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | 5,556,000,000 |
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | $ 5,361,000,000 |