Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2020shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2020 |
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) | 886,135,805 |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q3 |
Entity Central Index Key | 0001390777 |
Current Fiscal Year End Date | --12-31 |
Common Stock, $0.01 par value | New York Stock Exchange | |
Document Information [Line Items] | |
Title of 12(b) Security | Common Stock, $0.01 par value |
Trading Symbol | BK |
Security Exchange Name | NYSE |
Series C Noncumulative Perpetual Preferred Stock | New York Stock Exchange | |
Document Information [Line Items] | |
Title of 12(b) Security | Depositary Shares, each representing 1/4,000th of a share of Series C Noncumulative Perpetual Preferred Stock |
Trading Symbol | BK PrC |
Security Exchange Name | NYSE |
6.244% Fixed-to-Floating Rate Normal Preferred Capital Securities of Mellon Capital IV | New York Stock Exchange | |
Document Information [Line Items] | |
Title of 12(b) Security | 6.244% Fixed-to-Floating Rate Normal Preferred Capital Securities of Mellon Capital IV |
Trading Symbol | BK/P |
Security Exchange Name | NYSE |
Consolidated Income Statement (
Consolidated Income Statement (unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||||
Fee and other revenue | ||||||||
Asset servicing fees | $ 1,168 | $ 1,173 | $ 1,152 | $ 3,500 | $ 3,415 | |||
Clearing services fees | 397 | 431 | 419 | 1,298 | 1,227 | |||
Issuer services fees | 295 | 277 | 324 | 835 | 866 | |||
Treasury services fees | 152 | 144 | 140 | 445 | 412 | |||
Total investment services fees | 2,012 | 2,025 | 2,035 | 6,078 | 5,920 | |||
Investment management and performance fees | 835 | 786 | 832 | 2,483 | 2,506 | |||
Foreign exchange and other trading revenue | 137 | 166 | 150 | 622 | 486 | |||
Financing-related fees | 49 | 58 | 49 | 166 | 150 | |||
Distribution and servicing | 29 | 27 | 33 | 87 | 95 | |||
Investment and other income | 46 | 105 | 30 | 162 | 108 | |||
Total fee revenue | 3,108 | 3,167 | 3,129 | 9,598 | 9,265 | |||
Net securities gains (losses) | 9 | 9 | (1) | 27 | 7 | |||
Total fee and other revenue | 3,117 | 3,176 | 3,128 | 9,625 | 9,272 | |||
Operations of consolidated investment management funds | ||||||||
Investment income | 27 | 54 | 4 | 43 | 40 | |||
Interest of investment management fund note holders | 0 | 0 | 1 | 0 | 1 | |||
Income from consolidated investment management funds | 27 | 54 | 3 | 43 | 39 | |||
Net interest revenue | ||||||||
Interest revenue | 820 | 943 | 1,942 | 3,333 | 5,827 | |||
Interest expense | 117 | 163 | 1,212 | 1,036 | 3,454 | |||
Net interest revenue | 703 | 780 | 730 | 2,297 | 2,373 | |||
Total revenue | 3,847 | 4,010 | 3,861 | 11,965 | 11,684 | |||
Provision for credit losses | 9 | 143 | (16) | 321 | [1] | (17) | [1] | |
Noninterest expense | ||||||||
Staff | 1,466 | 1,464 | 1,479 | 4,412 | 4,424 | |||
Professional, legal and other purchased services | 355 | 337 | 316 | 1,022 | 978 | |||
Software and equipment | 340 | 345 | 309 | 1,011 | 896 | |||
Net occupancy | 136 | 137 | 138 | 408 | 413 | |||
Sub-custodian and clearing | 119 | 120 | 111 | 344 | 331 | |||
Distribution and servicing | 85 | 85 | 97 | 261 | 282 | |||
Bank assessment charges | 30 | 35 | 31 | 100 | 93 | |||
Business development | 17 | 20 | 47 | 79 | 148 | |||
Amortization of intangible assets | 26 | 26 | 30 | 78 | 89 | |||
Other | 107 | 117 | 32 | 364 | 282 | |||
Total noninterest expense | 2,681 | 2,686 | 2,590 | 8,079 | 7,936 | |||
Income | ||||||||
Income before income taxes | 1,157 | 1,181 | 1,287 | 3,565 | 3,765 | |||
Provision for income taxes | 213 | 216 | 246 | 694 | 747 | |||
Net income | 944 | 965 | 1,041 | 2,871 | 3,018 | |||
Net (income) attributable to noncontrolling interests related to consolidated investment management funds | (7) | (15) | (3) | (4) | (17) | |||
Net income applicable to shareholders of The Bank of New York Mellon Corporation | 937 | 950 | 1,038 | 2,867 | 3,001 | |||
Preferred stock dividends | (61) | (49) | (36) | (146) | (120) | |||
Net income applicable to common shareholders of The Bank of New York Mellon Corporation | 876 | 901 | 1,002 | 2,721 | 2,881 | |||
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 | 876 | 901 | 1,002 | 2,721 | 2,881 | |||
Less: Earnings allocated to participating securities | 1 | 1 | 3 | 5 | 12 | |||
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 | $ 875 | $ 900 | $ 999 | $ 2,716 | $ 2,869 | |||
Average common shares and equivalents outstanding of The Bank of New York Mellon Corporation | ||||||||
Basic (shares) | 889,499 | 889,020 | 933,264 | 891,050 | 949,035 | |||
Common stock equivalents (shares) | 2,173 | 2,044 | 3,811 | 2,522 | 4,484 | |||
Less: Participating securities (shares) | (603) | (503) | (1,398) | (779) | (1,643) | |||
Diluted (shares) | 891,069 | 890,561 | 935,677 | 892,793 | 951,876 | |||
Anti-dilutive securities (shares) | [2] | 1,485 | 1,578 | 3,701 | 1,828 | 4,269 | ||
Earnings per share applicable to the common shareholders of The Bank of New York Mellon Corporation | ||||||||
Basic (usd per share) | $ 0.98 | $ 1.01 | $ 1.07 | $ 3.05 | $ 3.02 | |||
Diluted (usd per share) | $ 0.98 | $ 1.01 | $ 1.07 | $ 3.04 | $ 3.01 | |||
[1] | In the first quarter of 2020, we adopted new accounting guidance included in ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, on a prospective basis. See Note 2 of the Notes to Consolidated Financial Statements for additional information. | |||||||
[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 Comprehensive Inco
Consolidated Comprehensive Income Statement (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $ 944 | $ 965 | $ 1,041 | $ 2,871 | $ 3,018 | |
Other comprehensive income (loss), net of tax: | ||||||
Foreign currency translation adjustments | 331 | 115 | (276) | 77 | (237) | |
Unrealized gain on assets available-for-sale: | ||||||
Unrealized gain arising during the period | 233 | 753 | 63 | 1,169 | 589 | |
Reclassification adjustment | (6) | (7) | 1 | (20) | (5) | |
Total unrealized gain on assets available-for-sale | 227 | 746 | 64 | 1,149 | 584 | |
Defined benefit plans: | ||||||
Net (loss) arising during the period | 0 | 0 | 0 | 0 | (9) | |
Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost | 20 | 19 | 10 | 57 | 30 | |
Total defined benefit plans | 20 | 19 | 10 | 57 | 21 | |
Net unrealized gain (loss) on cash flow hedges | 8 | 4 | (6) | 1 | (1) | |
Total other comprehensive income (loss), net of tax | [1] | 586 | 884 | (208) | 1,284 | 367 |
Total comprehensive income | 1,530 | 1,849 | 833 | 4,155 | 3,385 | |
Net (income) attributable to noncontrolling interests | (7) | (15) | (3) | (4) | (17) | |
Other comprehensive (income) loss attributable to noncontrolling interests | (2) | 0 | 3 | 0 | 1 | |
Comprehensive income applicable to shareholders of The Bank of New York Mellon Corporation | 1,521 | 1,834 | 833 | 4,151 | 3,369 | |
Other comprehensive (loss) income attributable to The Bank of New York Mellon Corporation shareholders | $ 584 | $ 884 | $ (205) | $ 1,284 | $ 368 | |
[1] | Other comprehensive income (loss) attributable to The Bank of New York Mellon Corporation shareholders was $584 million for the quarter ended Sept. 30, 2020, $884 million for the quarter ended June 30, 2020, $(205) million for the quarter ended Sept. 30, 2019, $1,284 million for the nine months ended Sept. 30, 2020 and $368 million for the nine months ended Sept. 30, 2019. |
Consolidated Balance Sheet (una
Consolidated Balance Sheet (unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | ||
Securities: | ||||
Held-to-maturity, at amortized cost, net of allowance for credit losses of less than $1 at Sept. 30, 2020 (fair value of $47,458 and $34,805) | $ 46,096 | $ 34,483 | ||
Available-for-sale, at fair value (amortized cost of $105,684 and $87,435, net of allowance for credit losses of $12 at Sept 30, 2020) | 109,243 | 88,550 | ||
Loans | 55,491 | 54,953 | ||
Allowance for credit losses | (460) | (216) | ||
Goodwill | 17,357 | 17,386 | ||
Intangible assets | 3,026 | 3,107 | ||
Other assets, net of allowance for credit losses on accounts receivable of $5 at Sept. 30, 2020 (includes $527 and $419, at fair value) | 20,779 | 20,221 | ||
Total assets | 428,398 | 381,508 | ||
Deposits: | ||||
Total liabilities | 383,051 | 339,780 | ||
Temporary equity | ||||
Redeemable noncontrolling interests | 179 | 143 | ||
Permanent equity | ||||
Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 45,826 and 35,826 shares | 4,532 | 3,542 | ||
Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,381,650,891 and 1,374,443,376 shares | 14 | 14 | ||
Additional paid-in capital | 27,741 | 27,515 | ||
Retained earnings | 33,821 | 31,894 | ||
Accumulated other comprehensive loss, net of tax | (1,359) | (2,638) | ||
Less: Treasury stock of 495,515,086 and 473,760,338 common shares, at cost | (19,832) | (18,844) | ||
Total The Bank of New York Mellon Corporation shareholders’ equity | 44,917 | 41,483 | ||
Nonredeemable noncontrolling interests of consolidated investment management funds | 251 | 102 | ||
Total permanent equity | [1] | 45,168 | [2] | 41,585 |
Total liabilities, temporary equity and permanent equity | 428,398 | 381,508 | ||
Investment Management funds | ||||
Securities: | ||||
Trading assets | 579 | 229 | ||
Assets of consolidated investment management funds, at fair value | 588 | 245 | ||
Deposits: | ||||
Liabilities of consolidated investment management funds, at fair value | 4 | 1 | ||
Operating segments | ||||
Assets | ||||
Cash and due from banks, net of allowance for credit losses of $5 at Sept. 30, 2020 | [3] | 4,104 | 4,830 | |
Interest-bearing deposits with the Federal Reserve and other central banks | 106,185 | 95,042 | ||
Interest-bearing deposits with banks, net of allowance for credit losses of $4 at Sept. 30, 2020 (includes restricted of $2,891 and $2,437) | [3] | 19,027 | 14,811 | |
Federal funds sold and securities purchased under resale agreements | [3] | 29,647 | 30,182 | |
Securities: | ||||
Held-to-maturity, at amortized cost, net of allowance for credit losses of less than $1 at Sept. 30, 2020 (fair value of $47,458 and $34,805) | [3] | 46,096 | 34,483 | |
Available-for-sale, at fair value (amortized cost of $105,684 and $87,435, net of allowance for credit losses of $12 at Sept 30, 2020) | [3] | 109,243 | 88,550 | |
Total securities | 155,339 | 123,033 | ||
Trading assets | 13,074 | 13,571 | ||
Loans | 55,491 | 54,953 | ||
Allowance for credit losses | [3] | (325) | (122) | |
Net loans | 55,166 | 54,831 | ||
Premises and equipment | 3,617 | 3,625 | ||
Accrued interest receivable | 489 | 624 | ||
Goodwill | 17,357 | 17,386 | ||
Intangible assets | 3,026 | 3,107 | ||
Other assets, net of allowance for credit losses on accounts receivable of $5 at Sept. 30, 2020 (includes $527 and $419, at fair value) | [3] | 20,779 | 20,221 | |
Total assets | 427,810 | 381,263 | ||
Deposits: | ||||
Noninterest-bearing (principally U.S. offices) | 79,470 | 57,630 | ||
Interest-bearing deposits in U.S. offices | 111,703 | 101,542 | ||
Interest-bearing deposits in non-U.S. offices | 105,139 | 100,294 | ||
Total deposits | 296,312 | 259,466 | ||
Federal funds purchased and securities sold under repurchase agreements | 15,907 | 11,401 | ||
Trading liabilities | 6,084 | 4,841 | ||
Payables to customers and broker-dealers | 23,514 | 18,758 | ||
Commercial paper | 671 | 3,959 | ||
Other borrowed funds | 420 | 599 | ||
Accrued taxes and other expenses | 5,347 | 5,642 | ||
Other liabilities (including allowance for credit losses on lending-related commitments of $135 and $94, also includes $997 and $607, at fair value) | [3] | 8,671 | 7,612 | |
Long-term debt (includes $400 and $387, at fair value) | 26,121 | 27,501 | ||
Total liabilities | 383,047 | 339,779 | ||
Operating segments | Investment Management funds | ||||
Securities: | ||||
Assets of consolidated investment management funds, at fair value | 588 | 245 | ||
Deposits: | ||||
Liabilities of consolidated investment management funds, at fair value | $ 4 | $ 1 | ||
[1] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,941 million at Dec. 31, 2019 and $40,385 million at Sept. 30, 2020. | |||
[2] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $39,165 million at June 30, 2020 and $40,385 million at Sept. 30, 2020. | |||
[3] | In the first quarter of 2020, we adopted new accounting guidance included in ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, on a prospective basis. See Note 2 of the Notes to Consolidated Financial Statements for additional information. |
Consolidated Balance Sheet (u_2
Consolidated Balance Sheet (unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Restricted cash | $ 3,000 | $ 2,000 |
Debt securities, held-to-maturity, fair value | 47,458 | 34,805 |
Debt securities, available-for-sale, allowance for credit loss | 12 | |
Debt securities, available-for-sale, amortized cost | 105,684 | 87,435 |
Long-term debt, fair value | $ 400 | $ 387 |
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) | 45,826 | 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) | 1,381,650,891 | 1,374,443,376 |
Treasury stock, common shares (shares) | 495,515,086 | 473,760,338 |
Operating segments | ||
Cash and due from banks, allowance for credit loss | $ 5 | |
Interest-bearing deposits with banks, allowance for credit losses | 4 | |
Restricted cash | 2,891 | $ 2,437 |
Debt securities, held-to-maturity, allowance for credit loss (less than) | 1 | |
Debt securities, held-to-maturity, fair value | 47,458 | 34,805 |
Debt securities, available-for-sale, allowance for credit loss | 12 | |
Debt securities, available-for-sale, amortized cost | 105,684 | 87,435 |
Other assets, allowance for credit loss on accounts receivable | 5 | |
Other assets, fair value | 527 | 419 |
Allowance for credit losses on lending related commitments | 135 | 94 |
Other liabilities, fair value | 997 | 607 |
Long-term debt, fair value | $ 400 | $ 387 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Operating activities | |||
Net income | $ 2,871 | $ 3,018 | |
Net (income) attributable to noncontrolling interests | (4) | (17) | |
Net income applicable to shareholders of The Bank of New York Mellon Corporation | 2,867 | 3,001 | |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||
Provision for credit losses | [1] | 321 | (17) |
Pension plan contributions | (18) | (30) | |
Depreciation and amortization | 1,175 | 971 | |
Deferred tax (benefit) | (351) | (185) | |
Net securities (gains) | (27) | (7) | |
Change in trading assets and liabilities | 1,736 | (1,880) | |
Change in accruals and other, net | 200 | 714 | |
Net cash provided by operating activities | 5,903 | 2,567 | |
Investing activities | |||
Change in interest-bearing deposits with banks | (3,808) | (1,503) | |
Change in interest-bearing deposits with the Federal Reserve and other central banks | (9,775) | (7,171) | |
Purchases of securities held-to-maturity | (23,507) | (5,390) | |
Paydowns of securities held-to-maturity | 6,291 | 3,501 | |
Maturities of securities held-to-maturity | 5,477 | 2,274 | |
Purchases of securities available-for-sale | (56,860) | (33,929) | |
Sales of securities available-for-sale | 10,824 | 7,482 | |
Paydowns of securities available-for-sale | 7,300 | 5,260 | |
Maturities of securities available-for-sale | 21,113 | 20,006 | |
Net change in loans | (537) | 1,478 | |
Sales of loans and other real estate | 10 | 147 | |
Change in federal funds sold and securities purchased under resale agreements | 525 | 3,071 | |
Net change in seed capital investments | 20 | 68 | |
Purchases of premises and equipment/capitalized software | (956) | (1,112) | |
Other, net | (417) | 588 | |
Net cash (used for) investing activities | (44,300) | (5,230) | |
Financing activities | |||
Change in deposits | 35,736 | 13,207 | |
Change in federal funds purchased and securities sold under repurchase agreements | 4,299 | (2,447) | |
Change in payables to customers and broker-dealers | 4,627 | (1,332) | |
Change in other borrowed funds | (183) | (2,422) | |
Change in commercial paper | (3,288) | 1,599 | |
Net proceeds from the issuance of long-term debt | 2,245 | 2,246 | |
Repayments of long-term debt | (4,400) | (4,250) | |
Proceeds from the exercise of stock options | 36 | 51 | |
Issuance of common stock | 9 | 19 | |
Issuance of preferred stock | 990 | 0 | |
Treasury stock acquired | (988) | (2,286) | |
Common cash dividends paid | (838) | (834) | |
Preferred cash dividends paid | (146) | (120) | |
Other, net | 36 | 23 | |
Net cash provided by financing activities | 38,135 | 3,454 | |
Effect of exchange rate changes on cash | (10) | (57) | |
Change in cash and due from banks and restricted cash | |||
Change in cash and due from banks and restricted cash | (272) | 734 | |
Cash and due from banks and restricted cash at beginning of period | 7,267 | 8,258 | |
Cash and due from banks and restricted cash at end of period | 6,995 | 8,992 | |
Cash and due from banks and restricted cash at end of period | 6,995 | 8,992 | |
Supplemental disclosures | |||
Interest paid | 1,166 | 3,528 | |
Income taxes paid | 1,112 | 697 | |
Income taxes refunded | $ 23 | $ 445 | |
[1] | In the first quarter of 2020, we adopted new accounting guidance included in ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, on a prospective basis. See Note 2 of the Notes to Consolidated Financial Statements for additional information. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity (unaudited) - USD ($) $ in Millions | Total | Preferred stock | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive (loss), net of tax | Treasury stock | Non-redeemable noncontrolling interests of consolidated investment management funds | Redeemable non- controlling interests/ temporary equity | Cumulative Effect, Period Of Adoption, Adjustment | Cumulative Effect, Period Of Adoption, AdjustmentRetained earnings | Cumulative Effect, Period Of Adoption, AdjustmentAccumulated other comprehensive (loss), net of tax | Cumulative Effect, Period of Adoption, Adjusted Balance | Cumulative Effect, Period of Adoption, Adjusted BalancePreferred stock | Cumulative Effect, Period of Adoption, Adjusted BalanceCommon stock | Cumulative Effect, Period of Adoption, Adjusted BalanceAdditional paid-in capital | Cumulative Effect, Period of Adoption, Adjusted BalanceRetained earnings | Cumulative Effect, Period of Adoption, Adjusted BalanceAccumulated other comprehensive (loss), net of tax | Cumulative Effect, Period of Adoption, Adjusted BalanceTreasury stock | Cumulative Effect, Period of Adoption, Adjusted BalanceNon-redeemable noncontrolling interests of consolidated investment management funds | Cumulative Effect, Period of Adoption, Adjusted BalanceRedeemable non- controlling interests/ temporary equity | |
Beginning balance at Dec. 31, 2018 | $ 40,739 | [1] | $ 3,542 | $ 14 | $ 27,118 | $ 28,652 | $ (3,171) | $ (15,517) | $ 101 | $ 129 | $ 0 | $ 90 | $ (90) | $ 40,739 | $ 3,542 | $ 14 | $ 27,118 | $ 28,742 | $ (3,261) | $ (15,517) | $ 101 | $ 129 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Shares issued to shareholders of noncontrolling interests | 52 | |||||||||||||||||||||
Redemption of subsidiary shares from noncontrolling interests | (7) | |||||||||||||||||||||
Other net changes in noncontrolling interests | 108 | 23 | 85 | (26) | ||||||||||||||||||
Net income | 3,018 | 3,001 | 17 | |||||||||||||||||||
Other comprehensive (loss) income attributable to The Bank of New York Mellon Corporation shareholders | 368 | 368 | ||||||||||||||||||||
Other comprehensive income (loss) | (1) | (1) | ||||||||||||||||||||
Dividends: | ||||||||||||||||||||||
Common stock | (834) | (834) | ||||||||||||||||||||
Preferred stock | (120) | (120) | ||||||||||||||||||||
Repurchase of common stock | (2,286) | (2,286) | ||||||||||||||||||||
Common stock issued under employee benefit plans | 22 | 22 | ||||||||||||||||||||
Direct stock purchase and dividend reinvestment plan | 11 | 11 | ||||||||||||||||||||
Stock awards and options exercised | 297 | 297 | ||||||||||||||||||||
Ending balance at Sep. 30, 2019 | $ 41,323 | [1],[2] | 3,542 | 14 | 27,471 | 30,789 | (2,893) | (17,803) | 203 | 147 | ||||||||||||
Dividends: | ||||||||||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | |||||||||||||||||||||
Beginning balance at Dec. 31, 2018 | $ 40,739 | [1] | 3,542 | 14 | 27,118 | 28,652 | (3,171) | (15,517) | 101 | 129 | 0 | 90 | (90) | 40,739 | 3,542 | 14 | 27,118 | 28,742 | (3,261) | (15,517) | 101 | 129 |
Ending balance at Dec. 31, 2019 | $ 41,585 | [3] | 3,542 | 14 | 27,515 | 31,894 | (2,638) | (18,844) | 102 | 143 | 40 | 45 | (5) | 41,625 | 3,542 | 14 | 27,515 | 31,939 | (2,643) | (18,844) | 102 | 143 |
Dividends: | ||||||||||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||||||||||||||
Beginning balance at Jun. 30, 2019 | $ 41,699 | [2] | 3,542 | 14 | 27,406 | 30,081 | (2,688) | (16,822) | 166 | 136 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Shares issued to shareholders of noncontrolling interests | 16 | |||||||||||||||||||||
Other net changes in noncontrolling interests | 36 | 2 | 34 | (2) | ||||||||||||||||||
Net income | 1,041 | 1,038 | 3 | |||||||||||||||||||
Other comprehensive (loss) income attributable to The Bank of New York Mellon Corporation shareholders | (205) | (205) | ||||||||||||||||||||
Other comprehensive income (loss) | (3) | (3) | ||||||||||||||||||||
Dividends: | ||||||||||||||||||||||
Common stock | (294) | (294) | ||||||||||||||||||||
Preferred stock | (36) | (36) | ||||||||||||||||||||
Repurchase of common stock | (981) | (981) | ||||||||||||||||||||
Common stock issued under employee benefit plans | 6 | 6 | ||||||||||||||||||||
Stock awards and options exercised | 57 | 57 | ||||||||||||||||||||
Ending balance at Sep. 30, 2019 | 41,323 | [1],[2] | 3,542 | 14 | 27,471 | 30,789 | (2,893) | (17,803) | 203 | 147 | ||||||||||||
Beginning balance at Dec. 31, 2019 | 41,585 | [3] | 3,542 | 14 | 27,515 | 31,894 | (2,638) | (18,844) | 102 | 143 | $ 40 | $ 45 | $ (5) | $ 41,625 | $ 3,542 | $ 14 | $ 27,515 | $ 31,939 | $ (2,643) | $ (18,844) | $ 102 | $ 143 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Shares issued to shareholders of noncontrolling interests | 55 | |||||||||||||||||||||
Redemption of subsidiary shares from noncontrolling interests | (17) | |||||||||||||||||||||
Other net changes in noncontrolling interests | 140 | (5) | 145 | (2) | ||||||||||||||||||
Net income | 2,871 | 2,867 | 4 | |||||||||||||||||||
Other comprehensive (loss) income attributable to The Bank of New York Mellon Corporation shareholders | 1,284 | 1,284 | ||||||||||||||||||||
Other comprehensive income (loss) | 0 | 0 | ||||||||||||||||||||
Dividends: | ||||||||||||||||||||||
Common stock | (839) | (839) | ||||||||||||||||||||
Preferred stock | (146) | (146) | ||||||||||||||||||||
Repurchase of common stock | (988) | (988) | ||||||||||||||||||||
Common stock issued under employee benefit plans | 21 | 21 | ||||||||||||||||||||
Preferred stock issued | 990 | 990 | ||||||||||||||||||||
Stock awards and options exercised | 210 | 210 | ||||||||||||||||||||
Ending balance at Sep. 30, 2020 | 45,168 | [3],[4] | 4,532 | 14 | 27,741 | 33,821 | (1,359) | (19,832) | 251 | 179 | ||||||||||||
Beginning balance at Mar. 31, 2020 | 41,239 | [5] | 3,542 | 14 | 27,644 | 32,601 | (2,827) | (19,829) | 94 | 140 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Shares issued to shareholders of noncontrolling interests | 17 | |||||||||||||||||||||
Other net changes in noncontrolling interests | 3 | 0 | 3 | 0 | ||||||||||||||||||
Net income | 965 | 950 | 15 | |||||||||||||||||||
Other comprehensive (loss) income attributable to The Bank of New York Mellon Corporation shareholders | 884 | 884 | ||||||||||||||||||||
Other comprehensive income (loss) | 0 | 0 | ||||||||||||||||||||
Dividends: | ||||||||||||||||||||||
Common stock | (278) | (278) | ||||||||||||||||||||
Preferred stock | (49) | (49) | ||||||||||||||||||||
Repurchase of common stock | (3) | (3) | ||||||||||||||||||||
Common stock issued under employee benefit plans | 6 | 6 | ||||||||||||||||||||
Preferred stock issued | 990 | 990 | ||||||||||||||||||||
Stock awards and options exercised | 52 | 52 | ||||||||||||||||||||
Ending balance at Jun. 30, 2020 | 43,809 | [4],[5] | 4,532 | 14 | 27,702 | 33,224 | (1,943) | (19,832) | 112 | 157 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Shares issued to shareholders of noncontrolling interests | 21 | |||||||||||||||||||||
Redemption of subsidiary shares from noncontrolling interests | (1) | |||||||||||||||||||||
Other net changes in noncontrolling interests | 132 | 0 | 132 | 0 | ||||||||||||||||||
Net income | 944 | 937 | 7 | |||||||||||||||||||
Other comprehensive (loss) income attributable to The Bank of New York Mellon Corporation shareholders | 584 | 584 | ||||||||||||||||||||
Other comprehensive income (loss) | 2 | 2 | ||||||||||||||||||||
Dividends: | ||||||||||||||||||||||
Common stock | (279) | (279) | ||||||||||||||||||||
Preferred stock | (61) | (61) | ||||||||||||||||||||
Common stock issued under employee benefit plans | 6 | 6 | ||||||||||||||||||||
Stock awards and options exercised | 33 | 33 | ||||||||||||||||||||
Ending balance at Sep. 30, 2020 | $ 45,168 | [3],[4] | $ 4,532 | $ 14 | $ 27,741 | $ 33,821 | $ (1,359) | $ (19,832) | $ 251 | $ 179 | ||||||||||||
[1] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,096 million at Dec. 31, 2018 and $37,578 million at Sept. 30, 2019. | |||||||||||||||||||||
[2] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,991 million at June 30, 2019 and $37,578 million at Sept. 30, 2019. | |||||||||||||||||||||
[3] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,941 million at Dec. 31, 2019 and $40,385 million at Sept. 30, 2020. | |||||||||||||||||||||
[4] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $39,165 million at June 30, 2020 and $40,385 million at Sept. 30, 2020. | |||||||||||||||||||||
[5] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,603 million at March 31, 2020 and $39,165 million at June 30, 2020. |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Dividends on common stock, cash paid (usd per share) | $ 0.31 | $ 0.31 | $ 0.31 | $ 0.93 | $ 0.87 | ||||
The Bank of New York Mellon Corporation shareholders’ equity | $ 44,917 | $ 44,917 | $ 41,483 | ||||||
Common stock | |||||||||
The Bank of New York Mellon Corporation shareholders’ equity | $ 40,385 | $ 39,165 | $ 37,578 | $ 40,385 | $ 37,578 | $ 37,603 | $ 37,941 | $ 37,991 | $ 37,096 |
Basis of presentation
Basis of presentation | 9 Months Ended |
Sep. 30, 2020 | |
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. generally accepted accounting principles (“GAAP”) and prevailing industry practices. For information on our significant accounting and reporting policies, see Note 1 in our 2019 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 2019 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 |
Accounting changes and new acco
Accounting changes and new accounting guidance | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Accounting changes and new accounting guidance | Accounting changes and new accounting guidance The following accounting guidance was adopted in the first quarter of 2020. Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments In June 2016, the Financial Accounting Standards Board (“FASB”) issued an ASU, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments . This ASU introduces a new current expected credit losses model, which applies to financial assets subject to credit losses and measured at amortized cost, including held-to-maturity securities and certain off-balance sheet credit exposures. The guidance also changes current practice for the impairment model for available-for-sale debt securities by requiring the use of an allowance to record estimated credit losses and subsequent recoveries. The standard requires a cumulative effect of initial application to be recognized in retained earnings at the date of initial application. In conjunction with adopting the new standard, we developed expected credit loss models and approaches that include consideration of multiple forecast scenarios and other methodologies. On Jan. 1, 2020, we adopted this new accounting guidance on a prospective basis and recognized a $45 million after-tax increase in retained earnings primarily attributable to a reduction to the allowance for credit losses for our commercial lending portfolios. The comparative financial information for prior periods has not been restated. See the Consolidated Balance Sheet and Notes 4 and 5 for the disclosures required by this ASU. The table below presents the reconciliation of the allowance for credit losses (pre-tax). Allowance for credit losses (in millions) Allowance for credit losses – Dec. 31, 2019 $ 216 Impact of adopting ASU 2016-13: Securities 7 Loans (a) (69) Other 3 Total impact of adoption of ASU 2016-13 (59) Reclassification of credit-related reserves on accounts receivable 4 Allowance for credit losses – Jan. 1, 2020 $ 161 (a) Includes $48 million related to loans and $21 million for lending-related commitments. Significant accounting policies Loans Loans are reported at amortized cost, net of any unearned income and deferred fees and costs. Certain loan origination and upfront commitment fees, as well as certain direct loan origination and commitment costs, are deferred and amortized as a yield adjustment over the lives of the related loans. Loans held for sale are carried at the lower of cost or fair value. Troubled debt restructuring/loan modifications A modified loan is considered a troubled debt restructuring (“TDR”) if the debtor is experiencing financial difficulties and the creditor grants a concession to the debtor that would not otherwise be considered. A TDR may include a transfer of real estate or other assets from the debtor to the creditor, or a modification of the term of the loan. Credit losses related to TDRs are accounted for under an individual evaluation methodology (see “Allowance for credit losses” below). Credit losses for anticipated TDRs are accounted for similarly to TDRs and are identified when there is a reasonable expectation that a TDR will be executed with the borrower and when we expect the modification to affect the timing or amount of payments and/or the payment term. Due to the coronavirus pandemic, there have been two forms of relief provided for classifying loans as TDRs: The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and the Interagency Guidance (as defined below). Financial institutions may account for eligible loan modifications either under the CARES Act or the Interagency Guidance. The Company has elected to apply both the CARES Act and the Interagency Guidance, as applicable, in providing borrowers with loan modification relief in response to the coronavirus pandemic. The CARES Act, which became law on March 27, 2020, provides that financial institutions may, subject to certain conditions, elect to temporarily suspend the U.S. GAAP requirements with respect to loan modifications related to the coronavirus pandemic that were current as of Dec. 31, 2019 and that would otherwise be identified and treated as TDRs. This TDR relief is applicable to modifications that were made from March 1, 2020 until the earlier of Dec. 31, 2020 or 60 days from the date the national emergency related to the coronavirus pandemic officially ends. Various banking regulators issued guidance in the April 7, 2020 “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (revised)” (“Interagency Guidance”) on loan modification treatment pursuant to which financial institutions can apply the U.S. GAAP requirements for loan modifications. In accordance with this guidance, a loan modification is not considered a TDR if the modification is related to the coronavirus pandemic, the borrower had been current when the modification program was implemented, and the modification includes payment deferrals for not more than six months. Nonperforming assets Commercial loans are placed on nonaccrual status when principal or interest is past due 90 days or more, or when there is reasonable doubt that interest or principal will be collected. When a first or second lien residential mortgage loan reaches 90 days delinquent, it is subject to an individual evaluation of credit loss and placed on nonaccrual status. When a loan is placed on nonaccrual status, previously accrued and uncollected interest is reversed against current period interest revenue. Interest receipts on nonaccrual loans are recognized as interest revenue or are applied to principal when we believe the ultimate collectability of principal is in doubt. Nonaccrual loans generally are restored to an accrual basis when principal and interest become current and remain current for a specified period. “Allowance for credit losses” below provides additional information regarding the individual evaluation of credit losses for nonperforming loans. Allowance for credit losses The accounting policy for estimating credit losses related to financial assets measured at amortized cost, including loans and lending-related commitments changed beginning in the first quarter of 2020 as a result of the adoption of ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments . This ASU also included targeted amendments with respect to credit losses for available-for-sale debt securities. The accounting policy for determining the allowances has been identified as a “critical accounting estimate” as it requires us to make numerous complex and subjective estimates and assumptions relating to amounts which are judgmental and inherently uncertain. Credit quality is monitored by management and is reflected within the allowance for credit losses. The allowance represents management’s estimate of expected credit losses over the expected contractual life of the financial instruments as of the balance sheet date. The allowance methodology is designed to provide procedural discipline in assessing the appropriateness of the allowance. A quantitative methodology and qualitative framework is used to estimate the allowance for credit losses. The qualitative framework is described in further detail within “Allowance for credit losses - Other” below. The quantitative component of our estimate uses models and methodologies that categorize financial assets based on product type, collateral type, and other credit trends and risk characteristics, including relevant information about past events, current conditions and reasonable and supportable forecasts of future economic conditions that affect the collectability of the recorded amounts. The allowance may be determined using various methods, including discounted cash flow methods, loss-rate methods, probability of default methods or other methods that we determine to be appropriate. We estimate our expected credit losses using the probability of default method for the majority of our financial assets. We measure expected credit losses of financial assets on a collective (pool) basis when similar risk characteristics exist. For a financial asset that does not share risk characteristics with other assets, expected credit losses are measured based on an individual evaluation method. In our estimate, with the exception of our small home equity line of credit portfolio, available-for-sale debt securities, and individually evaluated financial assets, we utilize a multi-scenario macroeconomic forecast which includes a weighting of baseline, stronger near-term growth and moderate recession scenarios. This approach allows us to develop our estimate using a wide span of economic input variables. Our baseline scenario reflects a view on likely performance of each global region and the other two scenarios are designed relative to the baseline scenario. The scenarios include both a reasonable and supportable forecast period as well as a reversion period. The reasonable and supportable forecast is typically over a two- to three-year horizon, followed by a reversion period in which the economic data reverts to long-term historical experience. In general, the forecasts across the alternative economic scenarios tend to revert toward the long-term trends after the forecast period, which is the period in which the confidence interval is considered reasonable and supportable. The speed at which the scenario specific forecasts revert is based on observed historical patterns of mean reversion that are reflected in our model parameter estimates. Certain macroeconomic variables such as unemployment or home prices take longer to revert after a contraction, though specific recovery times are scenario-specific. Reversion will usually take longer the further away the scenario specific forecast is from the historical mean. On a quarterly basis, within a developed governance structure, we update these scenarios for current economic conditions and may adjust the scenario weighting based on our economic outlook. Allowance for credit losses - Loans and lending-related commitments The allowance for credit losses on loans is presented as a valuation allowance to loans, and the allowance for credit losses on lending-related commitments is recorded in other liabilities. The components of the allowance for credit losses on loans and lending- related commitments consist of the following three elements: • a pooled allowance component for higher risk-rated and pass-rated commercial and institutional credits; • a pooled allowance component for residential mortgage loans; and • an asset-specific allowance component involving individually evaluated credits of $1 million or greater. The first element, a pooled allowance component for higher risk-rated and pass-rated commercial and institutional credits, is based on our expected credit loss model. Individual credit analyses are performed on such loans before being assigned a credit rating. All borrowers are collectively evaluated based on their credit rating. The loss expected in each loan incorporates the borrower’s credit rating, facility rating and maturity. The loss given default, derived from the facility rating, incorporates a recovery expectation, and for unfunded lending exposures, an estimate of the use of the facility at default (usage given default). The borrower’s probability of default is derived from the associated credit rating. For each of the different parameters, specific credit models are developed for each segment of our portfolio, including commercial loans and lease financing, commercial real estate, financial institutions, and other. Segmentation is established based on risk characteristics of the loans and how risk is monitored. We use both internal and external data in the development of these parameters. In estimating the term of the exposures and resulting effect on the measurement of expected credit loss, we consider the impact of potential prepayments as well as the effect of borrower extension options. Borrower ratings are reviewed at least annually and are periodically mapped to third-party databases, including rating agency and default and recovery databases, to ensure ongoing consistency and validity. Higher risk-rated loans and lending-related commitments are reviewed quarterly. The second element, a pooled allowance component for residential mortgage loans, is determined by first segregating our mortgage pools into two categories: (i) our wealth management mortgages and (ii) our legacy mortgage portfolio disclosed as other residential mortgages. We then apply models to each portfolio to predict prepayments, default rates and loss severity. We consider historical loss experience and use a loan-level, multi-period default model which further segments each portfolio by product type including first lien fixed rate mortgages, first lien adjustable rate mortgages, second lien mortgages, and interest-only mortgages. We calculate the mortgage loss up to loan contractual maturity and embed a reasonable and supportable forecast and macroeconomic variable inputs which are described above. For home equity lines of credit, probability of default and loss given default are based on external data from third-party databases due to the small size of the portfolio and limited internal data. Our legacy mortgage portfolio and home equity line of credit portfolios represent small sub-segments of our mortgage loans. The third element, individually evaluated credits, is based on individual analysis of loans of $1 million and greater which no longer share the risk characteristics with other loans. Factors we consider in measuring the extent of expected credit loss include the payment status, collateral value, the borrower’s financial condition, guarantor support, the probability of collecting scheduled principal and interest payments when due, anticipated modifications of payment structure or term for troubled borrowers, and recoveries if they can be reasonably estimated. We measure the expected credit loss as the difference between the amortized cost basis in the loan and the present value of the expected future cash flows from the borrower which is generally discounted at the loan’s effective interest rate, or the fair value of the collateral, if the loan is collateral dependent. We generally consider nonperforming loans as well as loans that have been or are anticipated to be modified under a troubled debt restructuring for individual evaluation given the risk characteristics of such loans. Allowance for credit losses - Securities - Debt When estimating expected credit losses, we segment our available-for-sale and held-to-maturity debt securities portfolios by major asset class. This is influenced by whether the security is structured or non-structured (i.e., direct obligation), as well as the issuer type. Debt securities are classified as available-for-sale securities when we intend to hold the securities for an indefinite period of time or when the securities may be used for tactical asset/liability management purposes and may be sold from time to time to effectively manage interest rate exposure, prepayment risk and liquidity needs. Available-for-sale securities are measured at fair value. The difference between fair value and amortized cost represents the unrealized gains or losses on assets classified as available-for-sale, and is recorded net of tax as an addition to, or deduction from, other comprehensive income, unless we determine that this difference or a portion thereof represents an expected credit loss. If we determine that a credit loss exists, the amount is recognized as an allowance for credit losses in securities - available-for sale, with a corresponding adjustment to the provision for credit losses. We evaluate credit losses at the individual security level and do not recognize credit losses if the fair value exceeds amortized cost, and if we determine that a credit loss exists, we limit the recognition of the loss to the difference between fair value and amortized cost. In our determination of whether an expected credit loss exists, we routinely conduct periodic reviews and examine various quantitative and qualitative factors that are unique to each portfolio, including the severity of the unrealized loss position, agency rating, credit enhancement, cash flow deterioration and other factors. The measurement of an expected credit loss is then based on the best estimate of the present value of cash flows to be collected from the debt security. Generally, cash flows are discounted at the effective interest rate implicit in the debt security. Changes to the present value of cash flows due to the passage of time are recognized within the allowance for credit losses. We estimate expected credit losses for held-to-maturity debt securities using a similar methodology as described in the first allowance element within “Allowance for credit losses - Loans and lending-related commitments” above. The allowance for credit losses on held-to-maturity debt securities are recorded in securities - held-to-maturity. The components of the credit loss calculation for each major portfolio or asset class include a probability of default and loss given default and their values depend on the forecast behavior of variables in the macroeconomic environment. For structured debt securities, we estimated expected credit losses at the individual security level and use a cash flow model to project principal losses. Generally, cash flows are discounted at the effective interest rate implicit in the debt security. The difference is reflected in the allowance for credit losses, and changes to the present value of cash flows due to the passage of time are recognized within the allowance for credit losses. We currently do not require an estimate of expected credit losses to be measured and recorded for U.S. Treasury securities, agency debt securities, as well as other debt securities that meet certain conditions that are based on a combination of factors such as guarantees, credit ratings, and other credit quality factors. These assets are monitored within our established governance structure on a recurring basis to determine if any changes are warranted. Allowance for credit losses – Other financial instruments We also estimate expected credit losses associated with margin loans, reverse repurchase agreements, security lending indemnifications, and deposits with third-party financial institutions using a similar methodology as described in the first allowance element within “Allowance for credit losses - Loans and lending-related commitments” above. The allowance for credit losses on reverse repurchase agreements are recorded in federal funds sold and securities purchased under resale agreements; the allowance for credit losses on securities lending indemnifications is recorded in other liabilities and the allowance for credit losses on deposits with third-party financial institutions is recorded in cash and due from banks or interest-bearing deposits with banks. Our reverse repurchase agreements are short term and subject to continuous overcollateralization by our counterparties and timely collateral replenishment, when necessary. As a result, we estimate the expected credit loss related to the uncollateralized portion of the asset at the balance sheet date, if any, and when there is a reasonable expectation that the counterparty will not replenish the collateral in compliance with the terms of the repurchase agreement. This method is also applied to margin lending arrangements and securities lending indemnifications. Allowance for credit losses - Other We do not apply our credit loss measurement methodologies to accrued interest receivable balances related to our loan, debt securities and deposits with third party financial institutions assets given our nonaccrual policy that requires charge-off of interest receivable when deemed uncollectible. Accrued interest receivable related to these instruments is presented in total with other interest-bearing instruments in the consolidated balance sheet. Accrued interest receivable related to each major loan class is disclosed within our credit quality disclosure in Note 5. Our policy for credit losses related to purchased financial assets requires an evaluation to be performed prior to the effective purchase date to determine if more than an insignificant decline in credit quality has occurred during the period between the origination and purchase date, or, in the case of debt securities, the period between the issuance and purchase date. If we purchase a financial asset with more than insignificant deterioration in credit quality, the measurement of expected credit loss is performed using the methodologies described above, and the credit loss is recorded as an allowance for credit losses on the purchase date. Subsequent to purchase, changes (favorable and unfavorable) in expected cash flows are recognized immediately in net income by adjusting the allowance. We evaluate various factors in the determination of whether a more than an insignificant decline in credit quality has occurred and these factors vary depending upon the type of asset purchased. Such factors include changes in risk rating and/or agency rating, collateral deterioration, payment status, purchase price, credit spreads, and other factors. We did not purchase any such assets during the first nine months of 2020 and did not own such assets as of Sept. 30, 2020. We apply a separate credit loss methodology to accounts receivables to estimate the expected credit losses associated with these short-term receivables which historically have not resulted in significant credit losses. The allowance for credit losses on accounts receivable is reflected in other assets. The qualitative component of our estimate for the allowance for credit losses is intended to capture expected losses that may not have been fully captured in the quantitative component. Through an established governance structure, management determines the qualitative allowance each period based on an evaluation of various internal and environmental factors which include: scenario weighting and sensitivity risk, credit concentration risk, economic conditions and other considerations. We may also make adjustments for idiosyncratic |
Acquisitions and dispositions
Acquisitions and dispositions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and dispositions | Acquisitions and dispositions We sometimes structure our acquisitions with both an initial payment and later contingent payments tied to post-closing revenue or income growth. There were no contingent payments in the third quarter of 2020. Contingent payment totaled $3 million in the first nine months of 2020. At Sept. 30, 2020, we are potentially obligated to pay additional consideration which, using reasonable assumptions, could range from $5 million to $10 million over the next two years , but could be higher as certain of the arrangements do not contain a contractual maximum. Transaction in 2019 On Nov. 8, 2019, BNY Mellon, along with the other holders of Promontory Interfinancial Network, LLC (“PIN”), completed the sale of their interests in PIN. BNY Mellon recorded an after-tax gain of $622 million on the sale of this equity investment. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2020 | |
Securities [Abstract] | |
Securities | Securities On Jan. 1, 2020, we adopted ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments on a prospective basis. See Note 2 for the significant accounting policy related to securities. The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of securities at Sept. 30, 2020 and Dec. 31, 2019. Securities at Sept. 30, 2020 Gross Fair Amortized cost (in millions) Gains Losses Available-for-sale: Agency RMBS $ 24,262 $ 526 $ 55 $ 24,733 U.S. Treasury 23,166 1,568 1 24,733 Sovereign debt/sovereign guaranteed 13,925 169 1 14,093 Agency commercial mortgage-backed securities (“MBS”) 9,299 646 3 9,942 Supranational 7,069 68 1 7,136 Foreign covered bonds 5,777 64 — 5,841 Collateralized loan obligations (“CLOs”) 4,696 5 44 4,657 Foreign government agencies 3,924 46 — 3,970 U.S. government agencies 3,300 180 2 3,478 Other asset-backed securities (“ABS”) 2,903 31 4 2,930 Non-agency commercial MBS 2,565 156 10 2,711 Non-agency RMBS (a) 1,793 157 9 1,941 State and political subdivisions 1,661 33 4 1,690 Corporate bonds 988 43 1 1,030 Commercial paper/certificates of deposit (“CDs”) 355 2 — 357 Other debt securities 1 — — 1 Total securities available-for-sale (b)(c) $ 105,684 $ 3,694 $ 135 $ 109,243 Held-to-maturity: Agency RMBS $ 37,086 $ 1,117 $ 10 $ 38,193 U.S. Treasury 3,288 103 — 3,391 U.S. government agencies 2,266 5 4 2,267 Agency commercial MBS 2,041 107 — 2,148 Sovereign debt/sovereign guaranteed 983 41 — 1,024 Commercial paper/CDs 295 — — 295 Non-agency RMBS 70 3 1 72 Supranational 52 1 — 53 State and political subdivisions 15 — — 15 Total securities held-to-maturity $ 46,096 $ 1,377 $ 15 $ 47,458 Total securities $ 151,780 $ 5,071 $ 150 $ 156,701 (a) Includes $512 million that was included in the former Grantor Trust. (b) In the first quarter of 2020, we adopted new accounting guidance included in ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, on a prospective basis. The amortized cost of available-for-sale securities is net of the allowance for credit loss of $12 million. The allowance for credit loss primarily relates to CLOs. See Note 2 for additional information. (c) Includes gross unrealized gains of $25 million and gross unrealized losses of $49 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, 2019 Gross Amortized cost Fair (in millions) Gains Losses Available-for-sale: Agency RMBS $ 27,022 $ 164 $ 143 $ 27,043 U.S. Treasury 14,979 472 20 15,431 Sovereign debt/sovereign guaranteed 12,548 109 11 12,646 Agency commercial MBS 9,231 203 17 9,417 Foreign covered bonds 4,189 15 7 4,197 CLOs 4,078 1 16 4,063 Supranational 3,697 18 6 3,709 Foreign government agencies 2,638 7 2 2,643 Non-agency commercial MBS 2,134 46 2 2,178 Other ABS 2,141 7 5 2,143 U.S. government agencies 1,890 61 2 1,949 Non-agency RMBS (a) 1,038 202 7 1,233 State and political subdivisions 1,017 27 — 1,044 Corporate bonds 832 21 — 853 Other debt securities 1 — — 1 Total securities available-for-sale (b) $ 87,435 $ 1,353 $ 238 $ 88,550 Held-to-maturity: Agency RMBS $ 27,357 $ 292 $ 46 $ 27,603 U.S. Treasury 3,818 28 3 3,843 Agency commercial MBS 1,326 21 3 1,344 U.S. government agencies 1,023 1 2 1,022 Sovereign debt/sovereign guaranteed 756 31 — 787 Non-agency RMBS 80 4 1 83 Foreign covered bonds 79 — — 79 Supranational 27 — — 27 State and political subdivisions 17 — — 17 Total securities held-to-maturity $ 34,483 $ 377 $ 55 $ 34,805 Total securities $ 121,918 $ 1,730 $ 293 $ 123,355 (a) Includes $640 million that was included in the former Grantor Trust. (b) Includes gross unrealized gains of $32 million and gross unrealized losses of $65 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) 3Q20 2Q20 3Q19 YTD20 YTD19 Realized gross gains $ 10 $ 16 $ 1 $ 38 $ 18 Realized gross losses (1) (7) (1) (11) (10) Recognized gross impairments — — (1) — (1) Total net securities gains (losses) $ 9 $ 9 $ (1) $ 27 $ 7 The following table presents pre-tax net securities gains (losses) by type. Net securities gains (losses) (in millions) 3Q20 2Q20 3Q19 YTD20 YTD19 Foreign government agencies $ 5 $ 2 $ — $ 7 $ — U.S. Treasury 1 1 — 7 4 Supranational — 6 — 6 — Sovereign debt/sovereign guaranteed 1 2 — 3 3 State and political subdivisions — — — — 2 Other 2 (2) (1) 4 (2) Total net securities gains (losses) $ 9 $ 9 $ (1) $ 27 $ 7 Allowance for credit losses - Securities In the first quarter of 2020, we adopted new accounting guidance included in ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments , on a prospective basis. The allowance for credit losses related to securities was $7 million on Jan. 1, 2020 and $12 million at Sept. 30, 2020. The increase reflects additional credit deterioration in the available-for-sale CLO portfolio. For additional information about the review of securities under previous other-than-temporary impairment guidance, refer to Notes 1 and 4, both Notes to Consolidated Financial Statements, in our 2019 Annual Report. Credit quality indicators - Securities At Sept. 30, 2020, the gross unrealized losses on the securities portfolio were primarily attributable to an increase in credit spreads 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, $49 million of the unrealized losses at Sept. 30, 2020 and $65 million at Dec. 31, 2019 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 table shows the aggregate fair value of available-for-sale 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 without an allowance for credit losses. Available-for-sale securities in an unrealized loss position without an allowance for credit losses at Sept. 30, 2020 (a) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (in millions) Agency RMBS $ 1,126 $ 3 $ 2,102 $ 52 $ 3,228 $ 55 U.S. Treasury 1,041 1 — — 1,041 1 Sovereign debt/sovereign guaranteed 1,069 1 119 — 1,188 1 Agency commercial MBS 566 1 306 2 872 3 Supranational 1,583 1 127 — 1,710 1 CLOs 3,449 31 579 13 4,028 44 U.S. government agencies 99 2 — — 99 2 Other ABS 675 2 229 2 904 4 Non-agency commercial MBS 358 6 194 4 552 10 Non-agency RMBS (b) 636 3 97 6 733 9 State and political subdivisions 262 4 2 — 264 4 Corporate bonds 173 1 — — 173 1 Total securities available-for-sale (c) $ 11,037 $ 56 $ 3,755 $ 79 $ 14,792 $ 135 (a) Includes $370 million of securities with an unrealized loss of greater than $1 million. (b) Includes $22 million of securities with an unrealized loss of $1 million for less than 12 months and $1 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. (c) Includes gross unrealized losses of $49 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 presents the temporarily impaired securities under the disclosure guidance that existed prior to the adoption of ASU 2016-13 and shows the aggregate fair value of available-for-sale 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 Dec. 31, 2019 Less than 12 months 12 months or more Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale: Agency RMBS $ 8,373 $ 33 $ 5,912 $ 110 $ 14,285 $ 143 U.S. Treasury 1,976 16 766 4 2,742 20 Sovereign debt/sovereign guaranteed 4,045 10 225 1 4,270 11 Agency commercial MBS 1,960 12 775 5 2,735 17 Foreign covered bonds 1,009 4 690 3 1,699 7 CLOs 1,066 2 1,499 14 2,565 16 Supranational 1,336 6 360 — 1,696 6 Foreign government agencies 1,706 2 47 — 1,753 2 Non-agency commercial MBS 525 2 45 — 570 2 Other ABS 456 3 305 2 761 5 U.S. government agencies 377 2 — — 377 2 Non-agency RMBS (a) 101 — 113 7 214 7 State and political subdivisions — — 16 — 16 — Corporate bonds 82 — 21 — 103 — Total securities available-for-sale (b) $ 23,012 $ 92 $ 10,774 $ 146 $ 33,786 $ 238 (a) Includes $2 million of securities with an unrealized loss of less than $1 million for less than 12 months and $2 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 $65 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 credit quality of the held-to-maturity securities. We have included certain credit ratings information because the information can indicate the degree of credit risk to which we are exposed. Significant changes in ratings classifications could indicate increased credit risk for us and could be accompanied by a reduction in the fair value of our securities portfolio. Held-to-maturity securities portfolio at Sept. 30, 2020 (a) Ratings (b) Net unrealized gain BB+ A1+/A2/SP-1+ (dollars in millions) Amortized AAA/ A+/ BBB+/ Not Agency RMBS $ 37,086 $ 1,107 100 % — % — % — % — % — % U.S. Treasury 3,288 103 100 — — — — — U.S. government agencies 2,266 1 100 — — — — — Agency commercial MBS 2,041 107 100 — — — — — Sovereign debt/sovereign guaranteed (c) 983 41 100 — — — — — Commercial paper/CDs 295 — — — — — 100 — Non-agency RMBS 70 2 39 46 2 12 — 1 Supranational 52 1 100 — — — — — State and political subdivisions 15 — 6 2 6 — — 86 Total held-to-maturity securities $ 46,096 $ 1,362 99 % — % — % — % 1 % — % (a) In the first quarter of 2020, we adopted new accounting guidance included in ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, on a prospective basis. See Note 2 for additional information. (b) Represents ratings by Standard & Poor’s (“S&P”) or the equivalent. (c) Primarily consists of exposure to France, UK and Germany. Maturity distribution 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 Sept. 30, 2020 U.S. Treasury U.S. government State and political Other bonds, notes and debentures Mortgage/ (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 $ 4,405 1.11 % $ 25 2.55 % $ 549 1.49 % $ 11,186 0.44 % $ — — % $ 16,165 Over 1 through 5 years 10,546 1.28 1,866 0.85 570 3.16 17,769 0.61 — — 30,751 Over 5 through 10 years 6,517 1.57 1,468 2.51 223 1.88 3,240 0.56 — — 11,448 Over 10 years 3,265 3.11 119 2.06 348 2.22 233 0.62 — — 3,965 Mortgage-backed securities — — — — — — — — 39,327 2.18 39,327 Asset-backed securities — — — — — — — — 7,587 1.72 7,587 Total $ 24,733 1.57 % $ 3,478 1.60 % $ 1,690 2.26 % $ 32,428 0.55 % $ 46,914 2.10 % $ 109,243 Securities held-to-maturity: One year or less $ 785 1.43 % $ — — % $ — — % $ 307 1.99 % $ — — % $ 1,092 Over 1 through 5 years 2,503 1.90 1,253 0.82 2 5.66 946 0.67 — — 4,704 Over 5 through 10 years — — 564 1.13 — — 32 0.92 — — 596 Over 10 years — — 449 2.28 13 4.76 45 0.35 — — 507 Mortgage-backed securities — — — — — — — — 39,197 2.57 39,197 Total $ 3,288 1.79 % $ 2,266 1.19 % $ 15 4.91 % $ 1,330 0.96 % $ 39,197 2.57 % $ 46,096 (a) Yields are based upon the amortized cost of securities. Pledged assets At Sept. 30, 2020, BNY Mellon had pledged assets of $141 billion, including $108 billion pledged as collateral for potential borrowings at the Federal Reserve Discount Window and $5 billion pledged as collateral for borrowing at the Federal Home Loan Bank. The components of the assets pledged at Sept. 30, 2020 included $123 billion of securities, $11 billion of loans, $6 billion of trading assets and $1 billion of interest-bearing deposits with banks. If there has been no borrowing at the Federal Reserve Discount Window, the Federal Reserve generally allows banks to freely move assets in and out of their pledged assets account to sell or repledge the assets for other purposes. BNY Mellon regularly moves assets in and out of its pledged assets account at the Federal Reserve. At Dec. 31, 2019, BNY Mellon had pledged assets of $118 billion, including $80 billion pledged as collateral for potential borrowing at the Federal Reserve Discount Window and $6 billion pledged as collateral for borrowing at the Federal Home Loan Bank. The components of the assets pledged at Dec. 31, 2019 included $98 billion of securities, $13 billion of loans, $7 billion of trading assets and less than $1 billion of interest-bearing deposits with banks. At Sept. 30, 2020 and Dec. 31, 2019, pledged assets included $23 billion and $29 billion, respectively, for which the recipients were permitted to sell or repledge the assets delivered. At Sept. 30, 2020, we pledged commercial paper and CDs totaling $295 million as collateral to the Federal Reserve Bank of Boston to secure non-recourse borrowings under the Federal Reserve’s Money Market Mutual Fund Liquidity Facility (“MMLF”) program. 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 Sept. 30, 2020 and Dec. 31, 2019, the market value of the securities received that can be sold or repledged was $112 billion and $153 billion, respectively. We routinely sell or repledge these securities through delivery to third parties. As of Sept. 30, 2020 and Dec. 31, 2019, the market value of securities collateral sold or repledged was $80 billion and $107 billion, respectively. Restricted cash and securities |
Loans and asset quality
Loans and asset quality | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans and asset quality | Loans and asset quality Loans The table below provides the details of our loan portfolio. Loans Sept. 30, 2020 Dec. 31, 2019 (in millions) Domestic: Commercial $ 1,839 $ 1,442 Commercial real estate 5,987 5,575 Financial institutions 4,915 4,852 Lease financings 482 537 Wealth management loans and mortgages 15,805 16,050 Other residential mortgages 423 494 Overdrafts 899 524 Other 1,616 1,167 Margin loans 11,220 11,907 Total domestic 43,186 42,548 Foreign: Commercial 102 347 Commercial real estate 5 7 Financial institutions 6,097 7,626 Lease financings 596 576 Wealth management loans and mortgages 121 140 Other (primarily overdrafts) 3,106 2,230 Margin loans 2,278 1,479 Total foreign 12,305 12,405 Total loans (a) $ 55,491 $ 54,953 (a) Net of unearned income of $285 million at Sept. 30, 2020 and $313 million at Dec. 31, 2019 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. Allowance for credit losses On Jan. 1, 2020, we adopted ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments on a prospective basis. See Note 2 for the significant accounting policy related to allowance for credit losses on loans and lending-related commitments. Activity in the allowance for credit losses on loans and lending-related commitments is presented below. This does not include activity in the allowance for credit losses related to other financial instruments, including cash and due from banks, interest-bearing deposits with banks, federal funds sold and securities purchased under resale agreements, held-to-maturity securities, available-for-sale securities and accounts receivable. Allowance for credit losses activity for the quarter ended Sept. 30, 2020 Wealth management loans and mortgages Other (in millions) Commercial Commercial Financial Lease Total Beginning balance $ 40 $ 372 $ 16 $ 3 $ 11 $ 12 $ 454 Charge-offs — — — — — — — Recoveries — — — — — 1 1 Net recoveries — — — — — 1 1 Provision (a) (13) 14 (5) — 4 5 5 Ending balance (b) $ 27 $ 386 $ 11 $ 3 $ 15 $ 18 $ 460 Allowance for: Loan losses $ 14 $ 270 $ 7 $ 3 $ 13 $ 18 $ 325 Lending-related commitments 13 116 4 — 2 — 135 Individually evaluated for impairment: Loan balance $ — $ — $ — $ — $ 17 (c) $ — $ 17 Allowance for loan losses — — — — — — — (a) Does not include provision for credit losses related to other financial instruments of $4 million for the third quarter 2020. (b) Includes $8 million of allowance for credit losses related to foreign loans, primarily financial institutions. (c) Includes collateral dependent loans of $17 million with $25 million of collateral at fair value. Allowance for credit losses activity for the quarter ended June 30, 2020 Wealth management loans and mortgages Other (in millions) Commercial Commercial Financial Lease Total Beginning balance $ 26 $ 208 $ 18 $ 13 $ 9 $ 14 $ 288 Charge-offs — — — — — — — Recoveries — — — — — 3 3 Net recoveries — — — — — 3 3 Provision (a) 14 164 (2) (10) 2 (5) 163 Ending balance (b) $ 40 $ 372 $ 16 $ 3 $ 11 $ 12 $ 454 Allowance for: Loan losses $ 23 $ 244 $ 11 $ 3 $ 9 $ 12 $ 302 Lending-related commitments 17 128 5 — 2 — 152 Individually evaluated for impairment: Loan balance $ — $ — $ — $ — $ 18 (c) $ — $ 18 Allowance for loan losses — — — — — — — (a) Does not include provision for credit losses related to other financial instruments of $(20) million for the second quarter 2020. (b) Includes $11 million of allowance for credit losses related to foreign loans, primarily financial institutions. (c) Includes collateral dependent loans of $18 million with $26 million of collateral at fair value. Allowance for credit losses activity for the quarter ended Sept. 30, 2019 Wealth management loans and mortgages Other All Foreign Total (in millions) Commercial Commercial Financial Lease Beginning balance $ 77 $ 72 $ 21 $ 4 $ 20 $ 14 $ — $ 33 $ 241 Charge-offs (1) — — — — — — — (1) Recoveries — — — — — — — — — Net (charge-offs) (1) — — — — — — — (1) Provision (15) 5 — (1) — — — (5) (16) Ending balance $ 61 $ 77 $ 21 $ 3 $ 20 $ 14 $ — $ 28 $ 224 Allowance for: Loan losses $ 10 $ 57 $ 7 $ 3 $ 17 $ 14 $ — $ 19 $ 127 Lending-related commitments 51 20 14 — 3 — — 9 97 Individually evaluated for impairment: Loan balance $ — $ — $ — $ — $ 16 $ — $ — $ — $ 16 Allowance for loan losses — — — — — — — — — Collectively evaluated for impairment: Loan balance $ 1,335 $ 5,292 $ 4,973 $ 559 $ 15,748 $ 520 $ 12,567 (a) $ 13,871 $ 54,865 Allowance for loan losses 10 57 7 3 17 14 — 19 127 (a) Includes $1,247 million of domestic overdrafts, $10,177 million of margin loans and $1,143 million of other loans at Sept. 30, 2019. Allowance for credit losses activity for the nine months ended Sept. 30, 2020 Wealth management loans and mortgages Other Foreign Total (in millions) Commercial Commercial Financial Lease (a) Balance at Dec. 31, 2019 $ 60 $ 76 $ 20 $ 3 $ 20 $ 13 $ 24 $ 216 Impact of adopting ASU 2016-13 (43) 14 (6) — (12) 2 (24) (69) Balance at Jan. 1, 2020 17 90 14 3 8 15 — 147 Charge-offs — — — — — — — — Recoveries — — — — — 4 — 4 Net recoveries — — — — — 4 — 4 Provision (b) 10 296 (3) — 7 (1) — 309 Ending balance $ 27 $ 386 $ 11 $ 3 $ 15 $ 18 $ — $ 460 (a) The allowance related to foreign exposure has been reclassified to financial institutions ($10 million), commercial ($10 million) and lease financings ($4 million). (b) Does not include provision for credit losses related to other financial instruments of $12 million for the nine months ended Sept. 30, 2020. Allowance for credit losses activity for the nine months ended Sept. 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 (12) — — — (1) — — — (13) Recoveries — — — — — 2 — — 2 Net (charge-offs) recoveries (12) — — — (1) 2 — — (11) Provision (8) 2 (1) (2) — (4) — (4) (17) Ending balance $ 61 $ 77 $ 21 $ 3 $ 20 $ 14 $ — $ 28 $ 224 Nonperforming assets The table below presents our nonperforming assets. Nonperforming assets Sept. 30, 2020 Dec. 31, 2019 Recorded investment With an Without an allowance (in millions) Total Nonperforming loans: Other residential mortgages $ 56 $ — $ 56 $ 62 Wealth management loans and mortgages 10 17 27 24 Total nonperforming loans 66 17 83 86 Other assets owned — 1 1 3 Total nonperforming assets $ 66 $ 18 $ 84 $ 89 At Sept. 30, 2020, undrawn commitments to borrowers whose loans were classified as nonaccrual or reduced rate were not material. Past due loans The table below presents our past due loans. Past due loans and still accruing interest Sept. 30, 2020 Dec. 31, 2019 Days past due Total Days past due Total (in millions) 30-59 60-89 ≥90 30-59 60-89 ≥90 Wealth management loans and mortgages $ 20 $ 1 $ — $ 21 $ 22 $ 5 $ — $ 27 Other residential mortgages 7 — — 7 8 3 — 11 Financial institutions — — — — 1 30 — 31 Commercial real estate 9 — — 9 6 12 — 18 Total past due loans $ 36 $ 1 $ — $ 37 $ 37 $ 50 $ — $ 87 Loan modifications Due to the coronavirus pandemic, there have been two forms of relief provided for classifying loans as TDRs: The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and the Interagency Guidance. See Note 2 for additional details on the CARES Act and Interagency Guidance. Financial institutions may account for eligible loan modifications either under the CARES Act or the Interagency Guidance. The Company has elected to apply both the CARES Act and the Interagency Guidance, as applicable, in providing borrowers with loan modification relief in response to the coronavirus pandemic. We modified loans of $106 million in the third quarter of 2020 and $282 million in the second quarter of 2020. Nearly all of the modifications were 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 table below provides information about the credit profile of the loan portfolio by the period of origination. Credit profile of the loan portfolio Sept. 30, 2020 Revolving loans Originated, at amortized cost Amortized cost Converted to term loans - Amortized cost Accrued (in millions) YTD20 2019 2018 2017 2016 Prior to 2016 Total (a) Commercial: Investment grade $ 153 $ 73 $ 96 $ 450 $ 57 $ — $ 893 $ — $ 1,722 Non-investment grade 85 61 7 — — — 66 — 219 Total commercial 238 134 103 450 57 — 959 — 1,941 $ 1 Commercial real estate: Investment grade 611 1,065 542 543 385 430 175 — 3,751 Non-investment grade 160 526 604 159 367 152 244 29 2,241 Total commercial real estate 771 1,591 1,146 702 752 582 419 29 5,992 8 Financial institutions: Investment grade 60 238 47 125 14 165 8,471 — 9,120 Non-investment grade 98 36 — — — — 1,758 — 1,892 Total financial institutions 158 274 47 125 14 165 10,229 — 11,012 13 Wealth management loans and mortgages: Investment grade 31 80 11 149 56 85 7,235 — 7,647 Non-investment grade — — — — — — 63 — 63 Wealth management mortgages 781 1,082 682 1,267 1,622 2,748 34 — 8,216 Total wealth management loans and mortgages 812 1,162 693 1,416 1,678 2,833 7,332 — 15,926 29 Lease financings 126 19 17 10 25 881 — — 1,078 — Other residential mortgages — — — — — 423 — — 423 2 Other loans — — — — — — 1,658 — 1,658 1 Margin loans 3,553 — — — — — 9,945 — 13,498 7 Total loans $ 5,658 $ 3,180 $ 2,006 $ 2,703 $ 2,526 $ 4,884 $ 30,542 $ 29 $ 51,528 $ 61 (a) Excludes overdrafts of $3,963 million. Overdrafts occur on a daily basis primarily in the custody and securities clearance business and are generally repaid within two Commercial loans 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. Commercial real estate Our income-producing commercial real estate facilities are focused on experienced owners and are structured with moderate leverage based on existing cash flows. Our commercial real estate lending activities also include construction and renovation facilities. Financial institutions Financial institution exposures are high quality, with 95% of the exposures meeting the investment grade equivalent criteria of our internal credit rating classification at Sept. 30, 2020. In addition, 75% of the financial institutions exposure is secured. For example, securities industry clients and asset managers often borrow against marketable securities held in custody. The exposure to financial institutions is generally short-term, with 89% expiring within one year. Wealth management loans and mortgages 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. Delinquency rate is a key indicator of credit quality in the wealth management portfolio. At Sept. 30, 2020, less than 1% of the mortgages were past due. At Sept. 30, 2020, the wealth management mortgage portfolio consisted of the following geographic concentrations: California - 22%; New York - 17%; Massachusetts - 10%; Florida - 8%; and other - 43%. Lease financing At Sept. 30, 2020, the lease financings portfolio consisted of exposures backed by well-diversified assets, primarily large-ticket transportation equipment and real estate. The largest component of our lease residual value exposure is freight-related rail. Assets are both domestic and foreign-based, with primary concentrations in the U.S. and Germany. Other residential mortgages The other residential mortgage portfolio primarily consists of 1-4 family residential mortgage loans and totaled $423 million at Sept. 30, 2020 and $494 million at Dec. 31, 2019. These loans are not typically correlated to external ratings. Included in this portfolio at Sept. 30, 2020 were $76 million of mortgage loans purchased in 2005, 2006 and the first quarter of 2007, of which 19% of the serviced loan balance was at least 60 days delinquent. Overdrafts Overdrafts primarily relate to custody and securities clearance clients and totaled $4.0 billion at Sept. 30, 2020 and $2.7 billion at Dec. 31, 2019. Overdrafts occur on a daily basis and are generally repaid within two 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 $13.5 billion of secured margin loans at Sept. 30, 2020, compared with $13.4 billion at Dec. 31, 2019. 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. Reverse repurchase agreements |
Goodwill and intangible assets
Goodwill and intangible assets | 9 Months Ended |
Sep. 30, 2020 | |
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 and Wealth Other Consolidated Balance at Dec. 31, 2019 $ 8,332 $ 9,007 $ 47 $ 17,386 Foreign currency translation 21 (50) — (29) Other (a) 47 — (47) — Balance at Sept. 30, 2020 $ 8,400 $ 8,957 $ — $ 17,357 (a) Reflects the transfer of goodwill associated with the Capital Markets business. Goodwill by business (in millions) Investment Investment and Wealth Management Other Consolidated Balance at Dec. 31, 2018 $ 8,333 $ 8,970 $ 47 $ 17,350 Foreign currency translation (45) (57) — (102) Balance at Sept. 30, 2019 $ 8,288 $ 8,913 $ 47 $ 17,248 Intangible assets The tables below provide a breakdown of intangible assets by business. Intangible assets – net carrying amount by business (in millions) Investment Investment and Wealth Management Other Consolidated Balance at Dec. 31, 2019 $ 678 $ 1,580 $ 849 $ 3,107 Amortization (54) (24) — (78) Foreign currency translation 1 (4) — (3) Balance at Sept. 30, 2020 $ 625 $ 1,552 $ 849 $ 3,026 Intangible assets – net carrying amount by business (in millions) Investment Investment and Wealth Management Other Consolidated Balance at Dec. 31, 2018 $ 758 $ 1,613 $ 849 $ 3,220 Amortization (61) (28) — (89) Foreign currency translation (1) (6) — (7) Balance at Sept. 30, 2019 $ 696 $ 1,579 $ 849 $ 3,124 The table below provides a breakdown of intangible assets by type. Intangible assets Sept. 30, 2020 Dec. 31, 2019 (in millions) Gross Accumulated Net Remaining Gross Accumulated Net Subject to amortization: (a) Customer contracts—Investment Services $ 1,482 $ (1,228) $ 254 10 years $ 1,520 $ (1,214) $ 306 Customer relationships—Investment and Wealth Management 711 (563) 148 10 years 712 (544) 168 Other 64 (21) 43 14 years 64 (16) 48 Total subject to amortization 2,257 (1,812) 445 10 years 2,296 (1,774) 522 Not subject to amortization: (b) Tradenames 1,292 N/A 1,292 N/A 1,293 N/A 1,293 Customer relationships 1,289 N/A 1,289 N/A 1,292 N/A 1,292 Total not subject to amortization 2,581 N/A 2,581 N/A 2,585 N/A 2,585 Total intangible assets $ 4,838 $ (1,812) $ 3,026 N/A $ 4,881 $ (1,774) $ 3,107 (a) Excludes fully amortized intangible assets. (b) Intangible assets not subject to amortization have an indefinite life. Estimated annual amortization expense for current intangibles for the next five years is as follows: For the year ended Estimated amortization expense (in millions) 2020 $ 104 2021 81 2022 63 2023 52 2024 45 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 six reporting units for which goodwill impairment testing is performed on an annual basis. The Investment Services segment is comprised of four reporting units and the Investment and Wealth Management segment is comprised of two reporting units. As a result of the annual goodwill impairment test of the six reporting units conducted in the second quarter of 2020 , no goodwill impairment was recognized. |
Other assets
Other assets | 9 Months Ended |
Sep. 30, 2020 | |
Other Assets [Abstract] | |
Other assets | Other assets The following table provides the components of other assets presented on the consolidated balance sheet. Other assets Sept. 30, 2020 Dec. 31, 2019 (in millions) Corporate/bank-owned life insurance $ 5,276 $ 5,219 Accounts receivable 3,549 3,802 Fails to deliver 2,192 1,671 Software 1,832 1,590 Prepaid pension assets 1,599 1,464 Equity in a joint venture and other investments 1,190 1,102 Renewable energy investments 1,057 1,144 Qualified affordable housing project investments 997 1,024 Prepaid expense 522 491 Federal Reserve Bank stock 478 466 Income taxes receivable 332 388 Seed capital 200 184 Fair value of hedging derivatives 56 21 Other (a) 1,499 1,655 Total other assets $ 20,779 $ 20,221 (a) At Sept. 30, 2020 and Dec. 31, 2019, other assets include $8 million and $22 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 $112 million at Sept. 30, 2020 and $61 million at Dec. 31, 2019 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. Adjustments on non-readily marketable equity securities Life-to-date (in millions) 3Q20 2Q20 3Q19 YTD20 YTD19 Upward adjustments $ 4 $ 2 $ 1 $ 10 $ 3 $ 42 Downward adjustments — — — — (1) (4) Net adjustments $ 4 $ 2 $ 1 $ 10 $ 2 $ 38 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 $1.0 billion at both Sept. 30, 2020 and Dec. 31, 2019. Commitments to fund future investments in qualified affordable housing projects totaled $388 million at Sept. 30, 2020 and $422 million at Dec. 31, 2019 and are recorded in other liabilities. A summary of the commitments to fund future investments is as follows: 2020 – $40 million; 2021 – $187 million; 2022 – $99 million; 2023 – $36 million; 2024 – $1 million; and 2025 and thereafter – $25 million. Tax credits and other tax benefits recognized were $35 million in the third quarter of 2020, $38 million in the second quarter of 2020, $39 million in the third quarter of 2019, $111 million in the first nine months of 2020 and $117 million in the first nine months of 2019. Investments valued using net asset value (“NAV”) per share In our Investment and Wealth Management business, we make seed capital investments in certain funds we manage. 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 NAV per share for our ownership interest in the funds. The table below presents information on our investments valued using NAV. Investments valued using NAV Sept. 30, 2020 Dec. 31, 2019 (in millions) Fair value Unfunded Fair value Unfunded Seed capital (a) $ 44 $ 11 $ 59 $ — Private equity investments (SBICs) (b) 97 55 89 55 Other (c) 43 — 33 — Total $ 184 $ 66 $ 181 $ 55 (a) Primarily includes leveraged loans and structured credit funds, which are generally not redeemable. Distributions from such investments will be received as the underlying investments in the funds, which have lives of six of six years at Dec. 31, 2019, are liquidated. (b) 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. |
Contract revenue
Contract revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract revenue | Contract revenueFee revenue in Investment Services and Investment and Wealth Management is primarily variable, based on levels of assets under custody and/or administration, assets under management and the level of client-driven transactions, as specified in fee schedules. See Note 10 of the Notes to Consolidated Financial Statements in our 2019 Annual Report for information on the nature of our services and revenue recognition. See Note 24 of the Notes to Consolidated Financial Statements in our 2019 Annual Report for additional information on our principal businesses, Investment Services and Investment and Wealth Management, and the primary services provided. Disaggregation of contract revenue Contract revenue is included in fee revenue on the consolidated income statement. The following table presents fee revenue related to contracts with customers, disaggregated by type of fee revenue, for each business segment. 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. Disaggregation of contract revenue by business segment Quarter ended Sept. 30, 2020 June 30, 2020 Sept. 30, 2019 (a) (in millions) IS IWM Other Total IS IWM Other Total IS IWM Other Total Fee revenue - contract revenue: Investment services fees: Asset servicing fees $ 1,143 $ 25 $ (13) $ 1,155 $ 1,147 $ 25 $ (15) $ 1,157 $ 1,106 $ 20 $ (5) $ 1,121 Clearing services fees 397 — — 397 431 — — 431 419 — — 419 Issuer services fees 296 — — 296 277 — — 277 324 — — 324 Treasury services fees 153 1 (2) 152 144 — 1 145 140 — — 140 Total investment services fees 1,989 26 (15) 2,000 1,999 25 (14) 2,010 1,989 20 (5) 2,004 Investment management and performance fees 4 838 (3) 839 4 792 (5) 791 4 829 (4) 829 Financing-related fees 13 1 1 15 23 1 — 24 14 — — 14 Distribution and servicing (2) 31 — 29 (7) 34 — 27 (12) 45 — 33 Investment and other income 57 (33) (2) 22 62 (41) 3 24 72 (50) — 22 Total fee revenue - contract revenue 2,061 863 (19) 2,905 2,081 811 (16) 2,876 2,067 844 (9) 2,902 Fee and other revenue - not in scope of Accounting Standards Codification (“ASC”) 606 (b)(c) 185 8 39 232 258 27 54 339 229 (6) 3 226 Total fee and other revenue (loss) $ 2,246 $ 871 $ 20 $ 3,137 $ 2,339 $ 838 $ 38 $ 3,215 $ 2,296 $ 838 $ (6) $ 3,128 (a) Restated to reflect the first quarter 2020 business segment reclassifications. There was no impact on total revenue, by type or in aggregate. See Note 19 for additional information related to the reclassifications. (b) Primarily includes foreign exchange and other trading revenue, financing-related fees, investment and other income (loss), asset servicing fees and net securities gains (losses), all of which are accounted for using other accounting guidance. (c) The Investment and Wealth Management business segment includes income fr om consolidated investment management funds, net of noncontrolling interests, of $20 million in the third quarter of 2020, $39 million in the second quarter of 2020 and $— million in the third quarter of 2019. IS - Investment Services business segment. IWM - Investment and Wealth Management business segment. Disaggregation of contract revenue by business segment Year-to-date Sept. 30, 2020 Sept. 30, 2019 (a) (in millions) IS IWM Other Total IS IWM Other Total Fee revenue - contract revenue: Investment services fees: Asset servicing fees $ 3,417 $ 73 $ (39) $ 3,451 $ 3,282 $ 60 $ (19) $ 3,323 Clearing services fees 1,298 — — 1,298 1,228 — (1) 1,227 Issuer services fees 836 — — 836 866 — — 866 Treasury services fees 446 1 (1) 446 412 1 — 413 Total investment services fees 5,997 74 (40) 6,031 5,788 61 (20) 5,829 Investment management and performance fees 13 2,492 (12) 2,493 12 2,503 (12) 2,503 Financing-related fees 64 2 1 67 47 — 1 48 Distribution and servicing (21) 108 — 87 (39) 134 — 95 Investment and other income 191 (124) 1 68 210 (147) — 63 Total fee revenue - contract revenue 6,244 2,552 (50) 8,746 6,018 2,551 (31) 8,538 Fee and other revenue - not in scope of ASC 606 (b)(c) 777 3 138 918 672 10 74 756 Total fee and other revenue $ 7,021 $ 2,555 $ 88 $ 9,664 $ 6,690 $ 2,561 $ 43 $ 9,294 (a) Restated to reflect the first quarter 2020 business segment reclassifications. There was no impact on total revenue, by type or in aggregate. See Note 19 for additional information related to the reclassifications. (b) Primarily includes foreign exchange and other trading revenue, financing-related fees, investment and other income (loss), asset servicing fees and net securities gains (losses), all of which are accounted for using other accounting guidance. (c) The Investment and Wealth Management business segment includes income from consolidated investment management funds, net of noncontrolling interests, of $39 million in the first nine months of 2020 and $22 million in the first nine months of 2019. IS - Investment Services business segment. IWM - Investment and Wealth Management business segment. Contract balances Our clients are billed based on fee schedules that are agreed upon in each customer contract. Receivables from customers were $2.5 billion at Sept. 30, 2020 and $2.4 billion at Dec. 31, 2019. 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 $57 million at Sept. 30, 2020 and $32 million at Dec. 31, 2019. Accrued revenues recorded as contract assets are usually billed on an annual basis. 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 $187 million at Sept. 30, 2020 and $168 million at Dec. 31, 2019. Contract liabilities are included in other liabilities on the consolidated balance sheet. Revenue recognized in the third quarter of 2020 relating to contract liabilities as of June 30, 2020 was $65 million. Revenue recognized in the first nine months of 2020 relating to contract liabilities as of Dec. 31, 2019 was $95 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 $77 million at Sept. 30, 2020 and $86 million at Dec. 31, 2019. 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 $6 million in the third quarter of 2020, $7 million in the third quarter of 2019, $5 million in the second quarter of 2020, $16 million in the first nine months of 2020 and $17 million in the first nine months of 2019. 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 seven Unsatisfied performance obligations We do not have any unsatisfied performance obligations other than those that are subject to a practical expedient election under ASC 606, Revenue From Contracts With Customers . The practical expedient election applies to (i) contracts with an original expected length of one year or less, and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
Net interest revenue
Net interest revenue | 9 Months Ended |
Sep. 30, 2020 | |
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) Sept. 30, 2020 June 30, 2020 Sept. 30, 2019 Sept. 30, 2020 Sept. 30, 2019 Interest revenue Deposits with the Federal Reserve and other central banks $ (10) $ (7) $ 102 $ 63 $ 354 Deposits with banks 20 40 73 118 200 Federal funds sold and securities purchased under resale agreements 48 61 660 505 1,702 Margin loans 41 40 104 168 358 Non-margin loans 199 230 287 (a) 738 1,007 (a) Securities: Taxable 499 556 669 1,649 2,062 Exempt from federal income taxes 7 6 7 19 29 Total securities 506 562 676 1,668 2,091 Trading securities 16 17 40 73 115 Total interest revenue 820 943 1,942 3,333 5,827 Interest expense Deposits (29) (17) 437 194 1,260 Federal funds purchased and securities sold under repurchase agreements 6 1 443 282 1,146 Trading liabilities 2 2 8 11 26 Other borrowed funds 3 7 10 14 54 Commercial paper — 1 22 7 48 Customer payables — (1) 59 29 198 Long-term debt 135 170 233 499 722 Total interest expense 117 163 1,212 1,036 3,454 Net interest revenue 703 780 730 2,297 2,373 Provision for credit losses 9 143 (16) 321 (17) Net interest revenue after provision for credit losses $ 694 $ 637 $ 746 $ 1,976 $ 2,390 (a) Includes the impact of a lease-related impairment of $70 million. |
Employee benefit plans
Employee benefit plans | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Employee benefit plans | Employee benefit plans The components of net periodic benefit (credit) cost are presented below. 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 Sept. 30, 2020 June 30, 2020 Sept. 30, 2019 (in millions) Domestic Foreign Health Domestic Foreign Health Domestic Foreign Health Service cost $ — $ 3 $ — $ — $ 3 $ — $ — $ 3 $ — Interest cost 39 7 2 39 6 1 44 8 2 Expected return on assets (80) (10) (2) (79) (9) (2) (84) (11) (1) Other 22 2 (1) 21 3 — 13 — (1) Net periodic benefit (credit) cost $ (19) $ 2 $ (1) $ (19) $ 3 $ (1) $ (27) $ — $ — Net periodic benefit (credit) cost Year-to-date Sept. 30, 2020 Sept. 30, 2019 (in millions) Domestic Foreign Health Domestic Foreign Health Service cost $ — $ 9 $ — $ — $ 9 $ — Interest cost 117 20 4 133 24 5 Expected return on assets (239) (29) (5) (252) (34) (5) Other 65 8 (2) 39 1 (2) Net periodic benefit (credit) cost $ (57) $ 8 $ (3) $ (80) $ — $ (2) |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes BNY Mellon recorded an income tax provision of $213 million (18.4% effective tax rate) in the third quarter of 2020, $246 million (19.1% effective tax rate) in the third quarter of 2019 and $216 million (18.3% effective tax rate) in the second quarter of 2020. Our total tax reserves as of Sept. 30, 2020 were $85 million compared with $173 million at Dec. 31, 2019. If these tax reserves were unnecessary, $85 million would affect the effective tax rate in future periods. We recognize accrued interest and penalties, if applicable, related to income taxes in income tax expense. Included in the balance sheet at Sept. 30, 2020 is accrued interest, where applicable, of $23 million. The additional tax expense related to interest for the nine months ended Sept. 30, 2020 was $5 million, compared with $9 million for the nine months ended Sept. 30, 2019. It is reasonably possible the total reserve for uncertain tax positions could decrease within the next 12 months by approximately $15 million as a result of adjustments related to tax years that are still subject to examination. |
Variable interest entities and
Variable interest entities and securitization | 9 Months Ended |
Sep. 30, 2020 | |
Securitizations And Variable Interest Entities Disclosure [Abstract] | |
Variable interest entities and securitization | Variable interest entities and securitization We have variable interests in variable interest entities (“VIEs”), which include investments in retail, institutional and alternative investment funds, including CLO structures in which we provide asset management services, some of which are consolidated. We earn management fees from these funds as well as performance fees in certain funds and may also provide start-up capital for new funds. The funds are primarily financed by our customers’ investments in the funds’ equity or debt. Additionally, we invest in qualified affordable housing and renewable energy projects, which are designed to generate a return primarily through the realization of tax credits. The projects, which are structured as limited partnerships and limited liability companies, are also VIEs, but are not consolidated. The following table presents the incremental assets and liabilities included in the consolidated balance sheet as of Sept. 30, 2020 and Dec. 31, 2019. 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 we invested in the VIE. Consolidated investments Sept. 30, 2020 Dec. 31, 2019 (in millions) Investment Securitization Total Investment Securitization Total Trading assets $ 579 $ 400 $ 979 $ 229 $ 400 $ 629 Other assets 9 — 9 16 — 16 Total assets $ 588 (a) $ 400 $ 988 $ 245 (b) $ 400 $ 645 Other liabilities $ 4 $ 400 $ 404 $ 1 $ 387 $ 388 Total liabilities $ 4 (a) $ 400 $ 404 $ 1 (b) $ 387 $ 388 Nonredeemable noncontrolling interests $ 251 (a) $ — $ 251 $ 102 (b) $ — $ 102 (a) Includes voting model entities (“VMEs”) with assets of $226 million, liabilities of $1 million and nonredeemable noncontrolling interests of $31 million. (b) Includes VMEs with assets of $50 million, liabilities of $1 million and nonredeemable noncontrolling interests of $1 million. We have 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 Sept. 30, 2020 and Dec. 31, 2019, the following assets and liabilities related to the VIEs where we are not the primary beneficiary were included in our consolidated balance sheets and primarily related 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 our investments in, and unfunded commitments to, the VIEs. Non-consolidated VIEs Sept. 30, 2020 Dec. 31, 2019 (in millions) Assets Liabilities Maximum Assets Liabilities Maximum Securities - Available-for-sale (a) $ 206 $ — $ 206 $ 208 $ — $ 208 Other 2,278 388 2,675 2,400 422 2,822 (a) Includes investments in the Company’s sponsored CLOs. |
Preferred stock
Preferred stock | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Preferred stock | Preferred stock The Parent has 100 million authorized shares of preferred stock with a par value of $0.01 per share. The following table summarizes the Parent’s preferred stock issued and outstanding at Sept. 30, 2020 and Dec. 31, 2019. Preferred stock summary (a) Total shares issued and outstanding Carrying value (b) (in millions) Sept. 30, 2020 Dec. 31, 2019 Sept. 30, 2020 Dec. 31, 2019 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 but excluding 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 but excluding Sept. 20, 2026, then a floating rate equal to the three-month LIBOR plus 3.131% 10,000 10,000 990 990 Series G 4.70% to but excluding Sept. 20, 2025, then a floating rate equal to the five-year treasury rate plus 4.358% 10,000 — 990 — Total 45,826 35,826 $ 4,532 $ 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, Series F and Series G preferred stock is recorded net of issuance costs. In May 2020, the Parent issued 1,000,000 depositary shares, each representing a 1/100th interest in a share of the Parent’s Series G Noncumulative Perpetual Preferred Stock (the “Series G Preferred Stock”). The Parent will pay dividends on the Series G Preferred Stock, if declared by its board of directors, on each March 20 and September 20, at an annual rate of 4.70%, from the original issue date to but excluding Sept. 20, 2025; and at a floating rate equal to the five-year treasury rate on the date that is three business days prior to the reset date plus 4.358% for each reset period, from and including Sept. 20, 2025. The floating rate will initially reset on Sept. 20, 2025 and subsequently on each date falling on the fifth anniversary of the preceding reset date. The table below presents the dividends paid on the Parent’s preferred stock. Preferred dividends paid (dollars in millions, except per share amounts) Depositary shares 3Q20 2Q20 3Q19 YTD20 YTD19 Per share Total Per share Total Per share Total Per share Total Per share Total Series A 100 (a) $ 1,011.11 $ 5 $ 1,022.22 $ 5 $ 1,022.22 $ 5 $ 3,044.44 $ 15 $ 3,044.44 $ 15 Series C 4,000 1,300.00 7 1,300.00 8 1,300.00 8 3,900.00 23 3,900.00 23 Series D 100 N/A — 2,250.00 11 N/A — 2,250.00 11 2,250.00 11 Series E 100 962.65 10 2,475.00 25 N/A — 3,437.65 35 2,475.00 25 Series F 100 2,312.50 23 N/A — 2,312.50 23 4,625.00 46 4,625.00 46 Series G 100 1,579.72 16 N/A — N/A — 1,579.72 16 N/A — Total $ 61 $ 49 $ 36 $ 146 $ 120 (a) Represents Normal Preferred Capital Securities. N/A - Not applicable. For additional information on the preferred stock, see Note 15 of the Notes to Consolidated Financial Statements in our 2019 Annual Report. |
Other comprehensive income (los
Other comprehensive income (loss) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Other comprehensive income (loss) | Other comprehensive income (loss) Components of other comprehensive income (loss) Quarter ended Sept. 30, 2020 June 30, 2020 Sept. 30, 2019 (in millions) Pre-tax Tax After-tax Pre-tax Tax After-tax Pre-tax Tax After-tax Foreign currency translation: Foreign currency translation adjustments arising during the period (a) $ 262 $ 69 $ 331 $ 104 $ 11 $ 115 $ (213) $ (63) $ (276) Total foreign currency translation 262 69 331 104 11 115 (213) (63) (276) Unrealized gain on assets available-for-sale: Unrealized gain arising during period 297 (64) 233 989 (236) 753 88 (25) 63 Reclassification adjustment (b) (9) 3 (6) (9) 2 (7) 1 — 1 Net unrealized gain on assets available-for-sale 288 (61) 227 980 (234) 746 89 (25) 64 Defined benefit plans: Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost (b) 24 (4) 20 24 (5) 19 13 (3) 10 Total defined benefit plans 24 (4) 20 24 (5) 19 13 (3) 10 Unrealized gain (loss) on cash flow hedges: Unrealized hedge gain (loss) arising during period 9 (1) 8 3 (1) 2 (9) 4 (5) Reclassification of net (gain) loss to net income: Interest rate contracts - interest expense — — — — — — 1 — 1 Foreign exchange (“FX”) contracts - staff expense — — — 3 (1) 2 (2) — (2) Total reclassifications to net income — — — 3 (1) 2 (1) — (1) Net unrealized gain (loss) on cash flow hedges 9 (1) 8 6 (2) 4 (10) 4 (6) Total other comprehensive income (loss) $ 583 $ 3 $ 586 $ 1,114 $ (230) $ 884 $ (121) $ (87) $ (208) (a) Includes the impact of hedges of net investments in foreign subsidiaries. See Note 17 for additional information. (b) The reclassification adjustment related to the unrealized gain (loss) on assets available-for-sale is recorded as net securities gains on the consolidated income statement. The amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost is recorded as staff expense on the consolidated income statement. Components of other comprehensive income (loss) Year-to-date Sept. 30, 2020 Sept. 30, 2019 (in millions) Pre-tax Tax After-tax Pre-tax Tax After-tax Foreign currency translation: Foreign currency translation adjustments arising during the period (a) $ 101 $ (24) $ 77 $ (157) $ (80) $ (237) Total foreign currency translation 101 (24) 77 (157) (80) (237) Unrealized gain on assets available-for-sale: Unrealized gain (loss) arising during period 1,529 (360) 1,169 794 (205) 589 Reclassification adjustment (b) (27) 7 (20) (7) 2 (5) Net unrealized gain on assets available-for-sale 1,502 (353) 1,149 787 (203) 584 Defined benefit plans: Net (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) 72 (15) 57 38 (8) 30 Total defined benefit plans 72 (15) 57 27 (6) 21 Unrealized (loss) gain on cash flow hedges: Unrealized hedge (loss) arising during period (1) 1 — (1) (2) (3) Reclassification of net loss (gain) to net income : Interest rate contracts - interest expense — — — 1 — 1 FX contracts - staff expense 2 (1) 1 (1) 2 1 Total reclassifications to net income 2 (1) 1 — 2 2 Net unrealized (loss) on cash flow hedges 1 — 1 (1) — (1) Total other comprehensive income $ 1,676 $ (392) $ 1,284 $ 656 $ (289) $ 367 (a) Includes the impact of hedges of net investments in foreign subsidiaries. See Note 17 for additional information. (b) The reclassification adjustment related to the unrealized gain (loss) on assets available-for-sale is recorded as net securities gains on the consolidated income statement. The amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost is recorded as staff expense on the consolidated income statement. |
Fair value measurement
Fair value measurement | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement | Fair value measurementFair 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 20 of the Notes to Consolidated Financial Statements in our 2019 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 Sept. 30, 2020 and Dec. 31, 2019, 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 Sept. 30, 2020 Total carrying (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Available-for-sale securities: Agency RMBS $ — $ 24,733 $ — $ — $ 24,733 U.S. Treasury 24,733 — — — 24,733 Sovereign debt/sovereign guaranteed 7,179 6,914 — — 14,093 Agency commercial MBS — 9,942 — — 9,942 Supranational — 7,136 — — 7,136 Foreign covered bonds — 5,841 — — 5,841 CLOs — 4,657 — — 4,657 Foreign government agencies — 3,970 — — 3,970 U.S. government agencies — 3,478 — — 3,478 Other ABS — 2,930 — — 2,930 Non-agency commercial MBS — 2,711 — — 2,711 Non-agency RMBS (b) — 1,941 — — 1,941 State and political subdivisions — 1,690 — — 1,690 Corporate bonds — 1,030 — — 1,030 Commercial paper/CDs — 357 — — 357 Other debt securities — 1 — — 1 Total available-for-sale securities 31,912 77,331 — — 109,243 Trading assets: Debt instruments 3,181 3,050 — — 6,231 Equity instruments (c) 2,694 — — — 2,694 Derivative assets not designated as hedging: Interest rate 4 4,958 — (2,133) 2,829 Foreign exchange — 4,410 — (3,102) 1,308 Equity and other contracts 4 11 — (3) 12 Total derivative assets not designated as hedging 8 9,379 — (5,238) 4,149 Total trading assets 5,883 12,429 — (5,238) 13,074 Other assets: Derivative assets designated as hedging: Foreign exchange — 56 — — 56 Total derivative assets designated as hedging — 56 — — 56 Other assets (d) 113 174 — — 287 Assets measured at NAV (d) 184 Subtotal assets of operations at fair value 37,908 89,990 — (5,238) 122,844 Percentage of assets of operations prior to netting 30 % 70 % — % Assets of consolidated investment management funds 360 228 — — 588 Total assets $ 38,268 $ 90,218 $ — $ (5,238) $ 123,432 Percentage of total assets prior to netting 30 % 70 % — % Liabilities measured at fair value on a recurring basis at Sept. 30, 2020 Total carrying (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Trading liabilities: Debt instruments $ 3,396 $ 66 $ — $ — $ 3,462 Equity instruments 26 — — — 26 Derivative liabilities not designated as hedging: Interest rate 3 4,243 — (2,551) 1,695 Foreign exchange — 4,522 — (3,631) 891 Equity and other contracts — 11 — (1) 10 Total derivative liabilities not designated as hedging 3 8,776 — (6,183) 2,596 Total trading liabilities 3,425 8,842 — (6,183) 6,084 Long-term debt (c) — 400 — — 400 Other liabilities – derivative liabilities designated as hedging: Interest rate — 803 — — 803 Foreign exchange — 194 — — 194 Total other liabilities – derivative liabilities designated as hedging — 997 — — 997 Subtotal liabilities of operations at fair value 3,425 10,239 — (6,183) 7,481 Percentage of liabilities of operations prior to netting 25 % 75 % — % Liabilities of consolidated investment management funds — 4 — — 4 Total liabilities $ 3,425 $ 10,243 $ — $ (6,183) $ 7,485 Percentage of total liabilities prior to netting 25 % 75 % — % (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 $512 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, 2019 Total carrying (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Available-for-sale securities: Agency RMBS $ — $ 27,043 $ — $ — $ 27,043 U.S. Treasury 15,431 — — — 15,431 Sovereign debt/sovereign guaranteed 7,784 4,862 — — 12,646 Agency commercial MBS — 9,417 — — 9,417 Foreign covered bonds — 4,197 — — 4,197 CLOs — 4,063 — — 4,063 Supranational — 3,709 — — 3,709 Foreign government agencies — 2,643 — — 2,643 Non-agency commercial MBS — 2,178 — — 2,178 Other ABS — 2,143 — — 2,143 U.S. government agencies — 1,949 — — 1,949 Non-agency RMBS (b) — 1,233 — — 1,233 State and political subdivisions — 1,044 — — 1,044 Corporate bonds — 853 — — 853 Other debt securities — 1 — — 1 Total available-for-sale securities 23,215 65,335 — — 88,550 Trading assets: Debt instruments 1,568 4,243 — — 5,811 Equity instruments (c) 4,539 — — — 4,539 Derivative assets not designated as hedging: Interest rate 4 3,686 — (1,792) 1,898 Foreign exchange — 5,331 — (4,021) 1,310 Equity and other contracts — 19 — (6) 13 Total derivative assets not designated as hedging 4 9,036 — (5,819) 3,221 Total trading assets 6,111 13,279 — (5,819) 13,571 Other assets : Derivative assets designated as hedging: Foreign exchange — 21 — — 21 Total derivative assets designated as hedging — 21 — — 21 Other assets (d) 38 179 — — 217 Assets measured at NAV (d) 181 Subtotal assets of operations at fair value 29,364 78,814 — (5,819) 102,540 Percentage of assets of operations prior to netting 27 % 73 % — % Assets of consolidated investment management funds 212 33 — — 245 Total assets $ 29,576 $ 78,847 $ — $ (5,819) $ 102,785 Percentage of total assets prior to netting 27 % 73 % — % Liabilities measured at fair value on a recurring basis at Dec. 31, 2019 Total carrying (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Trading liabilities: Debt instruments $ 1,477 $ 107 $ — $ — $ 1,584 Equity instruments 73 — — — 73 Derivative liabilities not designated as hedging: Interest rate 6 3,244 — (1,986) 1,264 Foreign exchange — 5,340 — (3,428) 1,912 Equity and other contracts 3 6 — (1) 8 Total derivative liabilities not designated as hedging 9 8,590 — (5,415) 3,184 Total trading liabilities 1,559 8,697 — (5,415) 4,841 Long-term debt (c) — 387 — — 387 Other liabilities – derivative liabilities designated as hedging: Interest rate — 350 — — 350 Foreign exchange — 257 — — 257 Total other liabilities – derivative liabilities designated as hedging — 607 — — 607 Subtotal liabilities of operations at fair value 1,559 9,691 — (5,415) 5,835 Percentage of liabilities of operations prior to netting 14 % 86 % — % Liabilities of consolidated investment management funds 1 — — — 1 Total liabilities $ 1,560 $ 9,691 $ — $ (5,415) $ 5,836 Percentage of total liabilities prior to netting 14 % 86 % — % (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 $640 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 Sept. 30, 2020 Dec. 31, 2019 Total Ratings (a) Total Ratings (a) AAA/ A+/ BBB+/ BB+ and AAA/ A+/ BBB+/ BB+ and (dollars in millions) (b) (b) Non-agency RMBS (c) , originated in: 2007-2020 $ 1,311 88 % — % — % 12 % $ 464 55 % 1 % — % 44 % 2006 244 — 23 — 77 291 — 21 — 79 2005 243 4 — 7 89 305 5 2 8 85 2004 and earlier 143 20 9 12 59 173 22 24 4 50 Total non-agency RMBS $ 1,941 61 % 4 % 2 % 33 % $ 1,233 25 % 9 % 3 % 63 % Non-agency commercial MBS originated in: 2009-2020 $ 2,711 100 % — % — % — % $ 2,178 98 % 2 % — % — % Foreign covered bonds: Canada $ 2,368 98 % 2 % — % — % $ 1,798 100 % — % — % — % UK 1,130 100 — — — 984 100 — — — Australia 775 100 — — — 431 100 — — — Norway 609 100 — — — 287 100 — — — Germany 479 100 — — — 357 100 — — — Other 480 100 — — — 340 100 — — — Total foreign covered bonds $ 5,841 99 % 1 % — % — % $ 4,197 100 % — % — % — % Sovereign debt/sovereign guaranteed: Germany $ 2,155 100 % — % — % — % $ 1,997 100 % — % — % — % UK 2,037 100 — — — 3,318 100 — — — Italy 1,974 — — 100 — 1,260 — — 100 — France 1,846 100 — — — 1,272 100 — — — Spain 1,835 — 5 95 — 1,453 — 6 94 — Singapore 949 100 — — — 742 100 — — — Canada 732 100 — — — 271 100 — — — Ireland 522 — 100 — — 301 — 100 — — Netherlands 471 100 — — — 791 100 — — — Japan 437 — 100 — — 274 — 100 — — Austria 294 100 — — — 240 100 — — — Belgium 253 100 — — — 79 100 — — — Hong Kong 206 100 — — — 411 100 — — — Other (d) 382 51 — 18 31 237 39 4 — 57 Total sovereign debt/sovereign guaranteed $ 14,093 65 % 7 % 27 % 1 % $ 12,646 73 % 5 % 21 % 1 % Foreign government agencies: Germany $ 1,483 100 % — % — % — % $ 1,131 100 % — % — % — % Netherlands 800 100 — — — 678 100 — — — Canada 442 72 28 — — 71 — 100 — — France 293 100 — — — 42 100 — — — Sweden 276 100 — — — 202 100 — — — Finland 246 100 — — — 245 100 — — — Other 430 77 23 — — 274 79 21 — — Total foreign government agencies $ 3,970 94 % 6 % — % — % $ 2,643 95 % 5 % — % — % (a) Represents ratings by S&P or the equivalent. (b) At Sept. 30, 2020 and Dec. 31, 2019, 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 $512 million at Sept. 30, 2020 and $640 million at Dec. 31, 2019 that were included in the former Grantor Trust. (d) Includes non-investment grade sovereign debt/sovereign guaranteed securities related to Brazil of $119 million at Sept. 30, 2020 and $134 million at Dec. 31, 2019. 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 Sept. 30, 2020 and Dec. 31, 2019. Assets measured at fair value on a nonrecurring basis Sept. 30, 2020 Dec. 31, 2019 Total carrying Total carrying (in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Loans (a) $ — $ 52 $ — $ 52 $ — $ 58 $ — $ 58 Other assets (b) — 113 — 113 — 64 — 64 Total assets at fair value on a nonrecurring basis $ — $ 165 $ — $ 165 $ — $ 122 $ — $ 122 (a) The fair value of these loans decreased less than $1 million in the third quarter of 2020 and the fourth quarter of 2019, based on the fair value of the underlying collateral, as required by guidance in ASC 326, Financial Instruments – Credit Losses, 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 Sept. 30, 2020 and Dec. 31, 2019, by caption on the consolidated balance sheet and by the valuation hierarchy. Summary of financial instruments Sept. 30, 2020 (in millions) Level 1 Level 2 Level 3 Total Carrying Assets: Interest-bearing deposits with the Federal Reserve and other central banks $ — $ 106,185 $ — $ 106,185 $ 106,185 Interest-bearing deposits with banks — 19,037 — 19,037 19,027 Federal funds sold and securities purchased under resale agreements — 29,647 — 29,647 29,647 Securities held-to-maturity 4,415 43,043 — 47,458 46,096 Loans (a) — 54,475 — 54,475 54,088 Other financial assets 4,104 1,121 — 5,225 5,225 Total $ 8,519 $ 253,508 $ — $ 262,027 $ 260,268 Liabilities: Noninterest-bearing deposits $ — $ 79,470 $ — $ 79,470 $ 79,470 Interest-bearing deposits — 216,499 — 216,499 216,842 Federal funds purchased and securities sold under repurchase agreements — 15,907 — 15,907 15,907 Payables to customers and broker-dealers — 23,514 — 23,514 23,514 Commercial paper — 671 — 671 671 Borrowings — 607 — 607 607 Long-term debt — 27,457 — 27,457 25,721 Total $ — $ 364,125 $ — $ 364,125 $ 362,732 (a) Does not include the leasing portfolio. Summary of financial instruments Dec. 31, 2019 (in millions) Level 1 Level 2 Level 3 Total estimated Carrying Assets: Interest-bearing deposits with the Federal Reserve and other central banks $ — $ 95,042 $ — $ 95,042 $ 95,042 Interest-bearing deposits with banks — 14,832 — 14,832 14,811 Federal funds sold and securities purchased under resale agreements — 30,182 — 30,182 30,182 Securities held-to-maturity 4,630 30,175 — 34,805 34,483 Loans (a) — 54,194 — 54,194 53,718 Other financial assets 4,830 1,233 — 6,063 6,063 Total $ 9,460 $ 225,658 $ — $ 235,118 $ 234,299 Liabilities: Noninterest-bearing deposits $ — $ 57,630 $ — $ 57,630 $ 57,630 Interest-bearing deposits — 200,846 — 200,846 201,836 Federal funds purchased and securities sold under repurchase agreements — 11,401 — 11,401 11,401 Payables to customers and broker-dealers — 18,758 — 18,758 18,758 Commercial paper — 3,959 — 3,959 3,959 Borrowings — 917 — 917 917 Long-term debt — 27,858 — 27,858 27,114 Total $ — $ 321,369 $ — $ 321,369 $ 321,615 (a) Does not include the leasing portfolio. |
Fair value option
Fair value option | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value option | Fair value option We elected fair value as an alternative measurement for selected financial assets and liabilities that are not otherwise required to be measured at fair value, including the assets and liabilities of consolidated investment management funds and certain long-term debt. 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 Sept. 30, 2020 Dec. 31, 2019 (in millions) Assets of consolidated investment management funds: Trading assets $ 579 $ 229 Other assets 9 16 Total assets of consolidated investment management funds $ 588 $ 245 Liabilities of consolidated investment management funds: Other liabilities 4 1 Total liabilities of consolidated investment management funds $ 4 $ 1 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 $400 million at Sept. 30, 2020 and $387 million at Dec. 31, 2019. 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. Change in fair value of long-term debt (a) (in millions) 3Q20 2Q20 3Q19 YTD20 YTD19 Foreign exchange and other trading revenue $ (1) $ (2) $ (3) $ (13) $ (15) (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 | 9 Months Ended |
Sep. 30, 2020 | |
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 third quarter of 2020. 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 floating interest rates. We also utilize interest rate swaps and forward exchange contracts as cash flow hedges to manage our exposure to interest rate and foreign exchange rate changes. The available-for-sale securities hedged consist of U.S. Treasury, agency and non-agency commercial MBS, sovereign debt/sovereign guaranteed, corporate bonds and foreign covered bonds. At Sept. 30, 2020, $14.5 billion par value of available-for-sale securities were hedged with interest rate swaps designated as fair value hedges that had notional values of $14.5 billion. The fixed rate long-term debt instruments hedged generally have original maturities of five In addition, we utilize forward foreign exchange contracts as hedges to mitigate foreign exchange exposures. We use forward foreign exchange contracts as cash flow hedges to convert certain forecasted non-U.S. dollar revenue and expenses into U.S. dollars. We use forward foreign exchange contracts with maturities of 15 months or less as cash flow hedges to hedge our foreign exchange exposure to currencies such as Indian rupee, British pound, Euro, Hong Kong dollar, Singapore dollar and Polish zloty used in revenue and expense transactions for entities that have the U.S. dollar as their functional currency. As of Sept. 30, 2020, the hedged forecasted foreign currency transactions and designated forward foreign exchange contract hedges were $319 million (notional), with a pre-tax gain of $5 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 Sept. 30, 2020, $140 million par value of available-for-sale securities was hedged with foreign currency forward contracts that had a notional value of $140 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. 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 Sept. 30, 2020, forward foreign exchange contracts with notional amounts totaling $7.9 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 and, at Sept. 30, 2020, had a combined U.S. dollar equivalent carrying value of $179 million. The following table presents the pre-tax gains (losses) related to our fair value and cash flow hedging activities recognized in the consolidated income statement. Income statement impact of fair value and cash flow hedges (in millions) Location of 3Q20 2Q20 3Q19 YTD20 YTD19 Interest rate fair value hedges of available-for-sale securities Derivative Interest revenue $ 150 $ 19 $ (250) $ (864) $ (1,119) Hedged item Interest revenue (140) (15) 243 856 1,099 Interest rate fair value hedges of long-term debt Derivative Interest expense (68) 47 146 693 631 Hedged item Interest expense 66 (49) (145) (691) (627) Foreign exchange fair value hedges of available-for-sale securities Derivative (a) Other revenue 1 (5) 2 (11) 3 Hedged item Other revenue 1 5 (2) 13 (2) Cash flow hedge of interest rate risk (Loss) reclassified from OCI into income Interest expense — — (1) — (1) Cash flow hedges of forecasted FX exposures (Loss) gain reclassified from OCI into income Staff expense — (3) 2 (2) 1 Gain (loss) recognized in the consolidated income statement due to fair value and cash flow hedging relationships $ 10 $ (1) $ (5) $ (6) $ (15) (a) Includes gains of less than $1 million in the third quarter of 2020, second quarter of 2020 and third quarter of 2019 and gains of $1 million in the first nine months of 2020 and first nine months of 2019 associated with the amortization of the excluded component. At Sept. 30, 2020 and Dec. 31, 2019, the remaining accumulated OCI balance associated with the excluded component was de minimis. The following table presents the impact of hedging derivatives used in net investment hedging relationships. Impact of derivative instruments used in net investment hedging relationships (in millions) Derivatives in net investment hedging relationships Gain or (loss) recognized in accumulated OCI on derivatives Location of gain or (loss) reclassified from accumulated OCI into income Gain or (loss) reclassified from accumulated OCI into income 3Q20 2Q20 3Q19 YTD20 YTD19 3Q20 2Q20 3Q19 YTD20 YTD19 FX contracts $ (289) $ (45) $ 252 $ 103 $ 322 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 Hedge accounting basis adjustment increase (decrease) (a) (in millions) Sept. 30, 2020 Dec. 31, 2019 Sept. 30, 2020 Dec. 31, 2019 Available-for-sale securities (b)(c) $ 14,629 $ 13,792 $ 1,650 $ 687 Long-term debt $ 14,889 $ 13,945 $ 870 $ 116 (a) Includes $187 million and $53 million of basis adjustment increases on discontinued hedges associated with available-for-sale securities at Sept. 30, 2020 and Dec. 31, 2019, respectively, and $136 million and $200 million of basis adjustment decreases on discontinued hedges associated with long-term debt at Sept. 30, 2020 and Dec. 31, 2019, 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 $140 million at Sept. 30, 2020 and $142 million at Dec. 31, 2019. (c) Carrying amount represents the amortized cost. The following table summarizes the notional amount and carrying values of our total derivative portfolio at Sept. 30, 2020 and Dec. 31, 2019. Impact of derivative instruments on the balance sheet Notional value Asset derivatives Liability derivatives Sept. 30, 2020 Dec. 31, 2019 Sept. 30, 2020 Dec. 31, 2019 Sept. 30, 2020 Dec. 31, 2019 (in millions) Derivatives designated as hedging instruments: (a)(b) Interest rate contracts $ 28,441 $ 28,365 $ — $ — $ 803 $ 350 Foreign exchange contracts 8,369 8,390 56 21 194 257 Total derivatives designated as hedging instruments $ 56 $ 21 $ 997 $ 607 Derivatives not designated as hedging instruments: (b)(c) Interest rate contracts $ 206,771 $ 306,790 $ 4,962 $ 3,690 $ 4,246 $ 3,250 Foreign exchange contracts 753,812 848,961 4,410 5,331 4,522 5,340 Equity contracts 2,241 3,189 15 19 8 5 Credit contracts 165 165 — — 3 4 Total derivatives not designated as hedging instruments $ 9,387 $ 9,040 $ 8,779 $ 8,599 Total derivatives fair value (d) $ 9,443 $ 9,061 $ 9,776 $ 9,206 Effect of master netting agreements (e) (5,238) (5,819) (6,183) (5,415) Fair value after effect of master netting agreements $ 4,205 $ 3,242 $ 3,593 $ 3,791 (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 results in 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 $675 million and $1,620 million, respectively, at Sept. 30, 2020, and $1,022 million and $618 million, respectively, at Dec. 31, 2019. 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) 3Q20 2Q20 3Q19 YTD20 YTD19 Foreign exchange $ 151 $ 174 $ 129 $ 578 $ 439 Other trading (loss) revenue (14) (8) 21 44 47 Total foreign exchange and other trading revenue $ 137 $ 166 $ 150 $ 622 $ 486 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 $12 million in the third quarter of 2020, a de minimis loss in the third quarter of 2019, a gain of $28 million in the second quarter of 2020, a loss of $1 million in the first nine months of 2020 and a gain of $23 million in the first nine months of 2019. We manage trading risk through a system of position limits, a value-at-risk (“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 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 into other risk management materials. Counterparty credit risk and collateral We assess the 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 15. Disclosure of contingent features in over-the-counter (“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. Sept. 30, 2020 Dec. 31, 2019 (in millions) Aggregate fair value of OTC derivatives in net liability positions (a) $ 5,958 $ 3,442 Collateral posted $ 6,384 $ 3,671 (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) Sept. 30, 2020 Dec. 31, 2019 (in millions) If The Bank of New York Mellon’s rating changed to: (b) A3/A- $ 10 $ 56 Baa2/BBB $ 565 $ 608 Ba1/BB+ $ 3,113 $ 2,084 (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 ratings by Moody’s/S&P. Offsetting assets and liabilities The following tables present derivative and financial instruments and their related offsets. 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 Sept. 30, 2020 Gross assets recognized Gross amounts offset in the balance sheet Net assets recognized in the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral received Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 3,183 $ 2,133 $ 1,050 $ 350 $ — $ 700 Foreign exchange contracts 4,043 3,102 941 33 — 908 Equity and other contracts 8 3 5 — — 5 Total derivatives subject to netting arrangements 7,234 5,238 1,996 383 — 1,613 Total derivatives not subject to netting arrangements 2,209 — 2,209 — — 2,209 Total derivatives 9,443 5,238 4,205 383 — 3,822 Reverse repurchase agreements 72,507 54,629 (b) 17,878 17,852 — 26 Securities borrowing 11,769 — 11,769 11,216 — 553 Total $ 93,719 $ 59,867 $ 33,852 $ 29,451 $ — $ 4,401 (a) Includes the effect of netting agreements and net cash collateral received. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions. (b) Offsetting of reverse repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation (“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, 2019 Gross assets recognized Gross amounts offset in the balance sheet Net assets recognized 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 $ 2,394 $ 1,792 $ 602 $ 207 $ — $ 395 Foreign exchange contracts 4,861 4,021 840 44 — 796 Equity and other contracts 9 6 3 — — 3 Total derivatives subject to netting arrangements 7,264 5,819 1,445 251 — 1,194 Total derivatives not subject to netting arrangements 1,797 — 1,797 — — 1,797 Total derivatives 9,061 5,819 3,242 251 — 2,991 Reverse repurchase agreements 112,355 93,794 (b) 18,561 18,554 — 7 Securities borrowing 11,621 — 11,621 11,278 — 343 Total $ 133,037 $ 99,613 $ 33,424 $ 30,083 $ — $ 3,341 (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 Sept. 30, 2020 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 $ 5,035 $ 2,551 $ 2,484 $ 2,477 $ — $ 7 Foreign exchange contracts 4,294 3,631 663 224 — 439 Equity and other contracts 8 1 7 — — 7 Total derivatives subject to netting arrangements 9,337 6,183 3,154 2,701 — 453 Total derivatives not subject to netting arrangements 439 — 439 — — 439 Total derivatives 9,776 6,183 3,593 2,701 — 892 Repurchase agreements 69,494 54,629 (b) 14,865 14,863 1 1 Securities lending 1,002 — 1,002 961 — 41 Total $ 80,272 $ 60,812 $ 19,460 $ 18,525 $ 1 $ 934 (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, 2019 Net liabilities recognized 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 $ 3,550 $ 1,986 $ 1,564 $ 1,539 $ — $ 25 Foreign exchange contracts 4,873 3,428 1,445 74 — 1,371 Equity and other contracts 5 1 4 2 — 2 Total derivatives subject to netting arrangements 8,428 5,415 3,013 1,615 — 1,398 Total derivatives not subject to netting arrangements 778 — 778 — — 778 Total derivatives 9,206 5,415 3,791 1,615 — 2,176 Repurchase agreements 104,451 93,794 (b) 10,657 10,657 — — Securities lending 718 — 718 694 — 24 Total $ 114,375 $ 99,209 $ 15,166 $ 12,966 $ — $ 2,200 (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 Sept. 30, 2020 Dec. 31, 2019 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 $ 60,350 $ — $ — $ 60,350 $ 94,788 $ 10 $ — $ 94,798 Agency RMBS 2,913 675 2 3,590 4,234 774 — 5,008 Corporate bonds 232 64 1,432 1,728 266 236 1,617 2,119 Sovereign debt/ sovereign guaranteed 128 — 1,151 1,279 — 22 — 22 State and political subdivisions 43 39 810 892 38 166 1,077 1,281 U.S. government agencies 610 — — 610 594 16 — 610 Other debt securities 47 44 186 277 2 — 2 4 Equity securities — 53 715 768 31 99 479 609 Total $ 64,323 $ 875 $ 4,296 $ 69,494 $ 99,953 $ 1,323 $ 3,175 $ 104,451 Securities lending: Agency RMBS $ 180 $ — $ — $ 180 $ 160 $ — $ — $ 160 U.S. government agencies 1 — — 1 19 — — 19 Other debt securities 49 — — 49 41 — — 41 Equity securities 772 — — 772 498 — — 498 Total $ 1,002 $ — $ — $ 1,002 $ 718 $ — $ — $ 718 Total secured borrowings $ 65,325 $ 875 $ 4,296 $ 70,496 $ 100,671 $ 1,323 $ 3,175 $ 105,169 |
Commitments and contingent liab
Commitments and contingent liabilities | 9 Months Ended |
Sep. 30, 2020 | |
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 Sept. 30, 2020 Dec. 31, 2019 (in millions) Lending commitments $ 47,658 $ 49,119 Standby letters of credit (“SBLC”) (a) 2,175 2,298 Commercial letters of credit 87 74 Securities lending indemnifications (b)(c) 414,324 408,378 (a) Net of participations totaling $145 million at Sept. 30, 2020 and $146 million at Dec. 31, 2019. (b) Excludes the indemnification for securities for which BNY Mellon acts as an agent on behalf of CIBC Mellon clients, which totaled $58 billion at Sept. 30, 2020 and $57 billion at Dec. 31, 2019. (c) Includes cash collateral, invested in indemnified repurchase agreements, held by us as securities lending agent of $43 billion at Sept. 30, 2020 and $37 billion at Dec. 31, 2019. 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: $31.0 billion in less than one year, $16.3 billion in one to five years and $336 million over five years. SBLCs principally support obligations of corporate clients and were collateralized with cash and securities of $200 million at Sept. 30, 2020 and $184 million at Dec. 31, 2019. At Sept. 30, 2020, $1.6 billion of the SBLCs will expire within one year, $568 million in one to five years and $1 million over 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 Sept. 30, 2020 Dec. 31, 2019 Investment grade 87 % 90 % Non-investment grade 13 % 10 % 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 $87 million at Sept. 30, 2020 and $74 million at Dec. 31, 2019. 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 $135 million at Sept. 30, 2020 and $94 million at Dec. 31, 2019. 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 $435 billion at Sept. 30, 2020 and $428 billion at Dec. 31, 2019. 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 Sept. 30, 2020 and Dec. 31, 2019, $58 billion and $57 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 $61 billion and $61 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 the settlement date. At Sept. 30, 2020, we had $150 million of unsettled repurchase agreements and no unsettled reverse repurchase agreements. Industry concentrations We have significant industry concentrations related to credit exposure at Sept. 30, 2020. The tables below present our credit exposure in the financial institutions and commercial portfolios. Financial institutions portfolio exposure (in billions) Sept. 30, 2020 Loans Unfunded Total exposure Securities industry $ 2.8 $ 22.3 $ 25.1 Asset managers 1.2 6.5 7.7 Banks 6.1 1.1 7.2 Insurance 0.1 2.7 2.8 Government 0.1 0.2 0.3 Other 0.7 0.7 1.4 Total $ 11.0 $ 33.5 $ 44.5 Commercial portfolio exposure (in billions) Sept. 30, 2020 Loans Unfunded Total exposure Services and other $ 1.0 $ 3.5 $ 4.5 Manufacturing 0.7 3.8 4.5 Energy and utilities 0.2 4.0 4.2 Media and telecom — 0.9 0.9 Total $ 1.9 $ 12.2 $ 14.1 Major concentrations in securities lending are primarily to broker-dealers and are generally collateralized with cash and/or securities. 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 17 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 Sept. 30, 2020 and Dec. 31, 2019, 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 Sept. 30, 2020 and Dec. 31, 2019, we did not record any material liabilities under these arrangements. Legal proceedings In the ordinary course of business, The Bank of New York Mellon Corporation and its subsidiaries are routinely named as defendants in or made parties to pending and potential legal actions. We also are subject to governmental and regulatory examinations, information-gathering requests, investigations and proceedings (both formal and informal). Claims for significant monetary damages are often asserted in many of these legal actions, while claims for disgorgement, restitution, penalties and/or other remedial actions or sanctions may be sought in governmental and regulatory matters. It is inherently difficult to predict the eventual outcomes of such matters given their complexity and the particular facts and circumstances at issue in each of these matters. However, on the basis of our current knowledge and understanding, we do not believe that judgments, settlements or orders, if any, arising from these matters (either individually or in the aggregate, after giving effect to applicable reserves and insurance coverage) will have a material adverse effect on the consolidated financial position or liquidity of BNY Mellon, although they could have a material effect on 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, we establish 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. We regularly monitor such matters for developments that could affect the amount of the accrual, and will adjust the accrual amount as appropriate. If the loss contingency in question is not both probable and reasonably estimable, we do 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. We believe that our 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. In addition, if we have the potential to recover a portion of an estimated loss from a third party, we record a receivable up to the amount of the accrual that is probable of recovery. 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 $750 million in excess of the accrued liability (if any) related to those matters. For matters where a reasonably possible loss is denominated in a foreign currency, our estimate is adjusted quarterly based on prevailing exchange rates. We do not consider potential recoveries when estimating reasonably possible losses. 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. Three actions commenced in December 2014, December 2015 and February 2017 are pending in New York federal court; and one action commenced in May 2016 is pending in New York state court. A New York federal court action filed in August 2014 has been dismissed. 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, also controlled by Stanford, issued certificates of deposit (“CDs”). Some investors allegedly wired funds from their SGC accounts to purchase CDs. In 2009, the Securities and Exchange Commission 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 two putative class action proceedings against Pershing: one in November 2009 in Texas federal court, and one in May 2016 in New Jersey federal court. Thirteen lawsuits have been filed against Pershing in Louisiana, Florida and New Jersey federal courts in January 2010, January and February 2015, October 2015 and May 2016. The purchasers allege that Pershing, as SGC’s clearing firm, assisted Stanford in a fraudulent scheme and assert contractual, statutory and common law claims. In March 2019, a group of investors filed a putative class action against The Bank of New York Mellon in New Jersey federal court, making the same allegations as in the prior actions brought against Pershing. All the cases that have been brought in federal court against Pershing and the case brought against The Bank of New York Mellon have been consolidated in Texas federal court for discovery purposes. On Dec. 19, 2019, the Court of Appeals for the Fifth Circuit affirmed the dismissal of six individual federal lawsuits brought under Florida law, which will also apply to four other similarly situated cases. On March 18, 2020, the plaintiffs in those lawsuits filed a Petition for Writ of Certiorari seeking permission to appeal to the United States Supreme Court. On Oct. 5, 2020, the United States Supreme Court denied the Petition. In July 2020, after being enjoined from pursuing claims before the Financial Industry Regulatory Authority, Inc. (“FINRA”), an investment firm filed an action against Pershing in Texas federal court. 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 Correios (“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. (“Alocação de Patrimônio”), 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 as 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 (“TCU”), 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. On Sept. 9, 2020, TCU rendered a decision in one of the proceedings, finding DTVM and two former Postalis directors jointly and severally liable for approximately $41.7 million. TCU also imposed on DTVM a fine of approximately $1.8 million. DTVM has filed an administrative appeal of the decision. On Oct. 4, 2019, Postalis and another pension fund filed a request for arbitration in São Paulo against DTVM and Ativos alleging liability for losses to an investment fund for which DTVM was administrator and Ativos was manager. On Oct. 25, 2019, Postalis filed a lawsuit in Rio de Janeiro against DTVM and Alocação de Patrimônio, alleging liability for losses in another fund for which DTVM was administrator and Alocação de Patrimônio and Ativos were managers. On June 19, 2020, a lawsuit was filed in federal court in Rio de Janeiro against DTVM, Postalis, and various other defendants alleging liability against DTVM for certain Postalis losses in an investment fund of which DTVM was administrator. 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 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 August 2019, the District Court of Bonn ordered that one of these subsidiaries be joined as a secondary party in connection with the prosecution of unrelated individual defendants. Trial commenced in September 2019. In March 2020, the court stated that it would refrain from taking action against the subsidiary in order to expedite the conclusion of the trial. The court convicted the unrelated individual defendants, and determined that the cum/ex trading activities of the relevant third-party investment funds were unlawful. 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. |
Supplemental information to the
Supplemental information to the Consolidated Statement of Cash Flows | 9 Months Ended |
Sep. 30, 2020 | |
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 Nine months ended Sept. 30, (in millions) 2020 2019 Transfers from loans to other assets for other real estate owned $ 1 $ 1 Change in assets of consolidated investment management funds 343 120 Change in liabilities of consolidated investment management funds 3 13 Change in nonredeemable noncontrolling interests of consolidated investment management funds 149 102 Securities purchased not settled 846 804 Premises and equipment/capitalized software funded by finance lease obligations — 14 Premises and equipment/operating lease obligations 126 1,440 (a) (a) Includes $1,244 million related to the adoption of ASU 2016-02, Leases |
Lines of business
Lines of business | 9 Months Ended |
Sep. 30, 2020 | |
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 24 of the Notes to Consolidated Financial Statements in our 2019 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, or for refinements in revenue and expense allocation methodologies. Refinements are typically reflected on a prospective basis. There were no significant organizational changes in the second or third quarters of 2020. In the first quarter of 2020, we reclassified the results of certain services provided between the segments from noninterest expense to fee and other revenue. The intersegment activity is eliminated in the Other segment and relates to services that are also provided to third parties and provides consistency with the reporting of the revenues. This adjustment had no impact on income before taxes of the businesses. Also in the first quarter of 2020, we reclassified the results related to certain lending activities from the Wealth Management business to the Pershing business. These loans were originated by the Wealth Management business as a service to Pershing clients. This resulted in an increase in total revenue, noninterest expense and income before taxes in the Pershing business and corresponding decrease in the Wealth Management business. Prior periods were restated in the first quarter of 2020 for both reclassifications. The accounting policies of the businesses are the same as those described in Note 1 of the Notes to Consolidated Financial Statements in our 2019 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 and include revenue for services provided between the segments that are also provided to third parties. 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, including services provided between segments that are not provided to third parties or not subject to a revenue transfer agreement, are allocated to businesses based on internally developed methodologies and reflected in noninterest expense. • 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 generally 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 Sept. 30, 2020 Investment Investment and Wealth Other Consolidated (dollars in millions) Total fee and other revenue $ 2,246 $ 871 (a) $ 20 $ 3,137 (a) Net interest revenue (expense) 681 47 (25) 703 Total revenue (loss) 2,927 918 (a) (5) 3,840 (a) Provision for credit losses (10) 12 7 9 Noninterest expense 2,020 661 — 2,681 Income (loss) before income taxes $ 917 $ 245 (a) $ (12) $ 1,150 (a) Pre-tax operating margin (b) 31 % 27 % N/M 30 % Average assets $ 329,324 $ 30,160 $ 55,381 $ 414,865 (a) Total fee and other revenue includes net income from consolidated investment management funds of $20 million, representing $27 million of income and noncontrolling interests of $7 million. Total revenue and income before income taxes are net of noncontrolling interests of $7 million. (b) Income before income taxes divided by total revenue. N/M - Not meaningful. For the quarter ended June 30, 2020 Investment Investment and Wealth Other Consolidated (dollars in millions) Total fee and other revenue $ 2,339 $ 838 (a) $ 38 $ 3,215 (a) Net interest revenue (expense) 768 48 (36) 780 Total revenue 3,107 886 (a) 2 3,995 (a) Provision for credit losses 145 7 (9) 143 Noninterest expense 1,989 658 39 2,686 Income (loss) before income taxes $ 973 $ 221 (a) $ (28) $ 1,166 (a) Pre-tax operating margin (b) 31 % 25 % N/M 29 % Average assets $ 335,288 $ 30,327 $ 49,744 $ 415,359 (a) Total fee and other revenue includes net income from consolidated investment management funds of $39 million, representing $54 million of income and noncontrolling interests of $15 million. Total revenue and income before income taxes are net of noncontrolling interests of $15 million. (b) Income before income taxes divided by total revenue. N/M - Not meaningful. For the quarter ended Sept. 30, 2019 Investment Investment and Wealth Other Consolidated (dollars in millions) Total fee and other revenue (loss) $ 2,296 $ 838 (a) $ (6) $ 3,128 (a) Net interest revenue (expense) 761 49 (80) 730 Total revenue (loss) 3,057 887 (a) (86) 3,858 (a) Provision for credit losses (15) — (1) (16) Noninterest expense 1,973 592 25 2,590 Income (loss) before income taxes $ 1,099 $ 295 (a) $ (110) $ 1,284 (a) Pre-tax operating margin (b) 36 % 33 % N/M 33 % Average assets $ 269,926 $ 27,840 $ 52,913 $ 350,679 (a) Total fee and other revenue includes net income from consolidated investment management funds of $— million, representing $3 million of income and noncontrolling interests of $3 million. Total revenue and income before income taxes are net of noncontrolling interests of $3 million. (b) Income before income taxes divided by total revenue. N/M - Not meaningful. For the nine months ended Sept. 30, 2020 Investment Investment and Wealth Other Consolidated (dollars in millions) Total fee and other revenue $ 7,021 $ 2,555 (a) $ 88 $ 9,664 (a) Net interest revenue (expense) 2,255 147 (105) 2,297 Total revenue (loss) 9,276 2,702 (a) (17) 11,961 (a) Provision for credit losses 284 28 9 321 Noninterest expense 5,996 2,014 69 8,079 Income (loss) before income taxes $ 2,996 $ 660 (a) $ (95) $ 3,561 (a) Pre-tax operating margin (b) 32 % 24 % N/M 30 % Average assets $ 322,924 $ 30,343 $ 51,936 $ 405,203 (a) Total fee and other revenue includes net income from consolidated investment management funds of $39 million, representing $43 million of income and noncontrolling interests of $4 million. Total revenue and income before income taxes are net of noncontrolling interests of $4 million. (b) Income before income taxes divided by total revenue. N/M - Not meaningful. For the nine months ended Sept. 30, 2019 Investment Investment and Wealth Other Consolidated (dollars in millions) Total fee and other revenue $ 6,690 $ 2,561 (a) $ 43 $ 9,294 (a) Net interest revenue (expense) 2,348 175 (150) 2,373 Total revenue (loss) 9,038 2,736 (a) (107) 11,667 (a) Provision for credit losses (11) (1) (5) (17) Noninterest expense 5,917 1,916 103 7,936 Income (loss) before income taxes $ 3,132 $ 821 (a) $ (205) $ 3,748 (a) Pre-tax operating margin (b) 35 % 30 % N/M 32 % Average assets $ 263,631 $ 29,815 $ 49,683 $ 343,129 (a) Total fee and other revenue includes net income from consolidated investment management funds of $22 million, representing $39 million of income and noncontrolling interests of $17 million. Total revenue and income before income taxes are net of noncontrolling interests of $17 million. (b) Income before income taxes divided by total revenue. N/M - Not meaningful. |
Accounting changes and new ac_2
Accounting changes and new accounting guidance (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accounting and financial reporting policies of BNY Mellon, a global financial services company, conform to U.S. generally accepted accounting principles (“GAAP”) and prevailing industry practices. For information on our significant accounting and reporting policies, see Note 1 in our 2019 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 estimatesThe 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. |
Fair value measurement | Fair value measurementFair 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 20 of the Notes to Consolidated Financial Statements in our 2019 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 Sept. 30, 2020 and Dec. 31, 2019, 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. |
Loans | LoansLoans are reported at amortized cost, net of any unearned income and deferred fees and costs. Certain loan origination and upfront commitment fees, as well as certain direct loan origination and commitment costs, are deferred and amortized as a yield adjustment over the lives of the related loans. Loans held for sale are carried at the lower of cost or fair value. |
Troubled debt restructuring/loan modifications | Troubled debt restructuring/loan modifications A modified loan is considered a troubled debt restructuring (“TDR”) if the debtor is experiencing financial difficulties and the creditor grants a concession to the debtor that would not otherwise be considered. A TDR may include a transfer of real estate or other assets from the debtor to the creditor, or a modification of the term of the loan. Credit losses related to TDRs are accounted for under an individual evaluation methodology (see “Allowance for credit losses” below). Credit losses for anticipated TDRs are accounted for similarly to TDRs and are identified when there is a reasonable expectation that a TDR will be executed with the borrower and when we expect the modification to affect the timing or amount of payments and/or the payment term. Due to the coronavirus pandemic, there have been two forms of relief provided for classifying loans as TDRs: The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and the Interagency Guidance (as defined below). Financial institutions may account for eligible loan modifications either under the CARES Act or the Interagency Guidance. The Company has elected to apply both the CARES Act and the Interagency Guidance, as applicable, in providing borrowers with loan modification relief in response to the coronavirus pandemic. The CARES Act, which became law on March 27, 2020, provides that financial institutions may, subject to certain conditions, elect to temporarily suspend the U.S. GAAP requirements with respect to loan modifications related to the coronavirus pandemic that were current as of Dec. 31, 2019 and that would otherwise be identified and treated as TDRs. This TDR relief is applicable to modifications that were made from March 1, 2020 until the earlier of Dec. 31, 2020 or 60 days from the date the national emergency related to the coronavirus pandemic officially ends. Various banking regulators issued guidance in the April 7, 2020 “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (revised)” (“Interagency Guidance”) on loan modification treatment pursuant to which financial institutions can apply the U.S. GAAP requirements for loan modifications. In accordance with this guidance, a loan modification is not considered a TDR if the modification is related to the coronavirus pandemic, the borrower had been current when the modification program was implemented, and the modification includes payment deferrals for not more than six months. |
Nonperforming assets | Nonperforming assets Commercial loans are placed on nonaccrual status when principal or interest is past due 90 days or more, or when there is reasonable doubt that interest or principal will be collected. When a first or second lien residential mortgage loan reaches 90 days delinquent, it is subject to an individual evaluation of credit loss and placed on nonaccrual status. When a loan is placed on nonaccrual status, previously accrued and uncollected interest is reversed against current period interest revenue. Interest receipts on nonaccrual loans are recognized |
Allowance for credit losses | Allowance for credit losses The accounting policy for estimating credit losses related to financial assets measured at amortized cost, including loans and lending-related commitments changed beginning in the first quarter of 2020 as a result of the adoption of ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments . This ASU also included targeted amendments with respect to credit losses for available-for-sale debt securities. The accounting policy for determining the allowances has been identified as a “critical accounting estimate” as it requires us to make numerous complex and subjective estimates and assumptions relating to amounts which are judgmental and inherently uncertain. Credit quality is monitored by management and is reflected within the allowance for credit losses. The allowance represents management’s estimate of expected credit losses over the expected contractual life of the financial instruments as of the balance sheet date. The allowance methodology is designed to provide procedural discipline in assessing the appropriateness of the allowance. A quantitative methodology and qualitative framework is used to estimate the allowance for credit losses. The qualitative framework is described in further detail within “Allowance for credit losses - Other” below. The quantitative component of our estimate uses models and methodologies that categorize financial assets based on product type, collateral type, and other credit trends and risk characteristics, including relevant information about past events, current conditions and reasonable and supportable forecasts of future economic conditions that affect the collectability of the recorded amounts. The allowance may be determined using various methods, including discounted cash flow methods, loss-rate methods, probability of default methods or other methods that we determine to be appropriate. We estimate our expected credit losses using the probability of default method for the majority of our financial assets. We measure expected credit losses of financial assets on a collective (pool) basis when similar risk characteristics exist. For a financial asset that does not share risk characteristics with other assets, expected credit losses are measured based on an individual evaluation method. In our estimate, with the exception of our small home equity line of credit portfolio, available-for-sale debt securities, and individually evaluated financial assets, we utilize a multi-scenario macroeconomic forecast which includes a weighting of baseline, stronger near-term growth and moderate recession scenarios. This approach allows us to develop our estimate using a wide span of economic input variables. Our baseline scenario reflects a view on likely performance of each global region and the other two scenarios are designed relative to the baseline scenario. The scenarios include both a reasonable and supportable forecast period as well as a reversion period. The reasonable and supportable forecast is typically over a two- to three-year horizon, followed by a reversion period in which the economic data reverts to long-term historical experience. In general, the forecasts across the alternative economic scenarios tend to revert toward the long-term trends after the forecast period, which is the period in which the confidence interval is considered reasonable and supportable. The speed at which the scenario specific forecasts revert is based on observed historical patterns of mean reversion that are reflected in our model parameter estimates. Certain macroeconomic variables such as unemployment or home prices take longer to revert after a contraction, though specific recovery times are scenario-specific. Reversion will usually take longer the further away the scenario specific forecast is from the historical mean. On a quarterly basis, within a developed governance structure, we update these scenarios for current economic conditions and may adjust the scenario weighting based on our economic outlook. Allowance for credit losses - Loans and lending-related commitments The allowance for credit losses on loans is presented as a valuation allowance to loans, and the allowance for credit losses on lending-related commitments is recorded in other liabilities. The components of the allowance for credit losses on loans and lending- related commitments consist of the following three elements: • a pooled allowance component for higher risk-rated and pass-rated commercial and institutional credits; • a pooled allowance component for residential mortgage loans; and • an asset-specific allowance component involving individually evaluated credits of $1 million or greater. The first element, a pooled allowance component for higher risk-rated and pass-rated commercial and institutional credits, is based on our expected credit loss model. Individual credit analyses are performed on such loans before being assigned a credit rating. All borrowers are collectively evaluated based on their credit rating. The loss expected in each loan incorporates the borrower’s credit rating, facility rating and maturity. The loss given default, derived from the facility rating, incorporates a recovery expectation, and for unfunded lending exposures, an estimate of the use of the facility at default (usage given default). The borrower’s probability of default is derived from the associated credit rating. For each of the different parameters, specific credit models are developed for each segment of our portfolio, including commercial loans and lease financing, commercial real estate, financial institutions, and other. Segmentation is established based on risk characteristics of the loans and how risk is monitored. We use both internal and external data in the development of these parameters. In estimating the term of the exposures and resulting effect on the measurement of expected credit loss, we consider the impact of potential prepayments as well as the effect of borrower extension options. Borrower ratings are reviewed at least annually and are periodically mapped to third-party databases, including rating agency and default and recovery databases, to ensure ongoing consistency and validity. Higher risk-rated loans and lending-related commitments are reviewed quarterly. The second element, a pooled allowance component for residential mortgage loans, is determined by first segregating our mortgage pools into two categories: (i) our wealth management mortgages and (ii) our legacy mortgage portfolio disclosed as other residential mortgages. We then apply models to each portfolio to predict prepayments, default rates and loss severity. We consider historical loss experience and use a loan-level, multi-period default model which further segments each portfolio by product type including first lien fixed rate mortgages, first lien adjustable rate mortgages, second lien mortgages, and interest-only mortgages. We calculate the mortgage loss up to loan contractual maturity and embed a reasonable and supportable forecast and macroeconomic variable inputs which are described above. For home equity lines of credit, probability of default and loss given default are based on external data from third-party databases due to the small size of the portfolio and limited internal data. Our legacy mortgage portfolio and home equity line of credit portfolios represent small sub-segments of our mortgage loans. The third element, individually evaluated credits, is based on individual analysis of loans of $1 million and greater which no longer share the risk characteristics with other loans. Factors we consider in measuring the extent of expected credit loss include the payment status, collateral value, the borrower’s financial condition, guarantor support, the probability of collecting scheduled principal and interest payments when due, anticipated modifications of payment structure or term for troubled borrowers, and recoveries if they can be reasonably estimated. We measure the expected credit loss as the difference between the amortized cost basis in the loan and the present value of the expected future cash flows from the borrower which is generally discounted at the loan’s effective interest rate, or the fair value of the collateral, if the loan is collateral dependent. We generally consider nonperforming loans as well as loans that have been or are anticipated to be modified under a troubled debt restructuring for individual evaluation given the risk characteristics of such loans. Allowance for credit losses - Securities - Debt When estimating expected credit losses, we segment our available-for-sale and held-to-maturity debt securities portfolios by major asset class. This is influenced by whether the security is structured or non-structured (i.e., direct obligation), as well as the issuer type. Debt securities are classified as available-for-sale securities when we intend to hold the securities for an indefinite period of time or when the securities may be used for tactical asset/liability management purposes and may be sold from time to time to effectively manage interest rate exposure, prepayment risk and liquidity needs. Available-for-sale securities are measured at fair value. The difference between fair value and amortized cost represents the unrealized gains or losses on assets classified as available-for-sale, and is recorded net of tax as an addition to, or deduction from, other comprehensive income, unless we determine that this difference or a portion thereof represents an expected credit loss. If we determine that a credit loss exists, the amount is recognized as an allowance for credit losses in securities - available-for sale, with a corresponding adjustment to the provision for credit losses. We evaluate credit losses at the individual security level and do not recognize credit losses if the fair value exceeds amortized cost, and if we determine that a credit loss exists, we limit the recognition of the loss to the difference between fair value and amortized cost. In our determination of whether an expected credit loss exists, we routinely conduct periodic reviews and examine various quantitative and qualitative factors that are unique to each portfolio, including the severity of the unrealized loss position, agency rating, credit enhancement, cash flow deterioration and other factors. The measurement of an expected credit loss is then based on the best estimate of the present value of cash flows to be collected from the debt security. Generally, cash flows are discounted at the effective interest rate implicit in the debt security. Changes to the present value of cash flows due to the passage of time are recognized within the allowance for credit losses. We estimate expected credit losses for held-to-maturity debt securities using a similar methodology as described in the first allowance element within “Allowance for credit losses - Loans and lending-related commitments” above. The allowance for credit losses on held-to-maturity debt securities are recorded in securities - held-to-maturity. The components of the credit loss calculation for each major portfolio or asset class include a probability of default and loss given default and their values depend on the forecast behavior of variables in the macroeconomic environment. For structured debt securities, we estimated expected credit losses at the individual security level and use a cash flow model to project principal losses. Generally, cash flows are discounted at the effective interest rate implicit in the debt security. The difference is reflected in the allowance for credit losses, and changes to the present value of cash flows due to the passage of time are recognized within the allowance for credit losses. We currently do not require an estimate of expected credit losses to be measured and recorded for U.S. Treasury securities, agency debt securities, as well as other debt securities that meet certain conditions that are based on a combination of factors such as guarantees, credit ratings, and other credit quality factors. These assets are monitored within our established governance structure on a recurring basis to determine if any changes are warranted. Allowance for credit losses – Other financial instruments We also estimate expected credit losses associated with margin loans, reverse repurchase agreements, security lending indemnifications, and deposits with third-party financial institutions using a similar methodology as described in the first allowance element within “Allowance for credit losses - Loans and lending-related commitments” above. The allowance for credit losses on reverse repurchase agreements are recorded in federal funds sold and securities purchased under resale agreements; the allowance for credit losses on securities lending indemnifications is recorded in other liabilities and the allowance for credit losses on deposits with third-party financial institutions is recorded in cash and due from banks or interest-bearing deposits with banks. Our reverse repurchase agreements are short term and subject to continuous overcollateralization by our counterparties and timely collateral replenishment, when necessary. As a result, we estimate the expected credit loss related to the uncollateralized portion of the asset at the balance sheet date, if any, and when there is a reasonable expectation that the counterparty will not replenish the collateral in compliance with the terms of the repurchase agreement. This method is also applied to margin lending arrangements and securities lending indemnifications. Allowance for credit losses - Other We do not apply our credit loss measurement methodologies to accrued interest receivable balances related to our loan, debt securities and deposits with third party financial institutions assets given our nonaccrual policy that requires charge-off of interest receivable when deemed uncollectible. Accrued interest receivable related to these instruments is presented in total with other interest-bearing instruments in the consolidated balance sheet. Accrued interest receivable related to each major loan class is disclosed within our credit quality disclosure in Note 5. Our policy for credit losses related to purchased financial assets requires an evaluation to be performed prior to the effective purchase date to determine if more than an insignificant decline in credit quality has occurred during the period between the origination and purchase date, or, in the case of debt securities, the period between the issuance and purchase date. If we purchase a financial asset with more than insignificant deterioration in credit quality, the measurement of expected credit loss is performed using the methodologies described above, and the credit loss is recorded as an allowance for credit losses on the purchase date. Subsequent to purchase, changes (favorable and unfavorable) in expected cash flows are recognized immediately in net income by adjusting the allowance. We evaluate various factors in the determination of whether a more than an insignificant decline in credit quality has occurred and these factors vary depending upon the type of asset purchased. Such factors include changes in risk rating and/or agency rating, collateral deterioration, payment status, purchase price, credit spreads, and other factors. We did not purchase any such assets during the first nine months of 2020 and did not own such assets as of Sept. 30, 2020. We apply a separate credit loss methodology to accounts receivables to estimate the expected credit losses associated with these short-term receivables which historically have not resulted in significant credit losses. The allowance for credit losses on accounts receivable is reflected in other assets. The qualitative component of our estimate for the allowance for credit losses is intended to capture expected losses that may not have been fully captured in the quantitative component. Through an established governance structure, management determines the qualitative allowance each period based on an evaluation of various internal and environmental factors which include: scenario weighting and sensitivity risk, credit concentration risk, economic conditions and other considerations. We may also make adjustments for idiosyncratic |
Accounting changes and new ac_3
Accounting changes and new accounting guidance (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Reconciliation of Allowance for Credit Losses | The table below presents the reconciliation of the allowance for credit losses (pre-tax). Allowance for credit losses (in millions) Allowance for credit losses – Dec. 31, 2019 $ 216 Impact of adopting ASU 2016-13: Securities 7 Loans (a) (69) Other 3 Total impact of adoption of ASU 2016-13 (59) Reclassification of credit-related reserves on accounts receivable 4 Allowance for credit losses – Jan. 1, 2020 $ 161 (a) Includes $48 million related to loans and $21 million for lending-related commitments. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 Sept. 30, 2020 and Dec. 31, 2019. Securities at Sept. 30, 2020 Gross Fair Amortized cost (in millions) Gains Losses Available-for-sale: Agency RMBS $ 24,262 $ 526 $ 55 $ 24,733 U.S. Treasury 23,166 1,568 1 24,733 Sovereign debt/sovereign guaranteed 13,925 169 1 14,093 Agency commercial mortgage-backed securities (“MBS”) 9,299 646 3 9,942 Supranational 7,069 68 1 7,136 Foreign covered bonds 5,777 64 — 5,841 Collateralized loan obligations (“CLOs”) 4,696 5 44 4,657 Foreign government agencies 3,924 46 — 3,970 U.S. government agencies 3,300 180 2 3,478 Other asset-backed securities (“ABS”) 2,903 31 4 2,930 Non-agency commercial MBS 2,565 156 10 2,711 Non-agency RMBS (a) 1,793 157 9 1,941 State and political subdivisions 1,661 33 4 1,690 Corporate bonds 988 43 1 1,030 Commercial paper/certificates of deposit (“CDs”) 355 2 — 357 Other debt securities 1 — — 1 Total securities available-for-sale (b)(c) $ 105,684 $ 3,694 $ 135 $ 109,243 Held-to-maturity: Agency RMBS $ 37,086 $ 1,117 $ 10 $ 38,193 U.S. Treasury 3,288 103 — 3,391 U.S. government agencies 2,266 5 4 2,267 Agency commercial MBS 2,041 107 — 2,148 Sovereign debt/sovereign guaranteed 983 41 — 1,024 Commercial paper/CDs 295 — — 295 Non-agency RMBS 70 3 1 72 Supranational 52 1 — 53 State and political subdivisions 15 — — 15 Total securities held-to-maturity $ 46,096 $ 1,377 $ 15 $ 47,458 Total securities $ 151,780 $ 5,071 $ 150 $ 156,701 (a) Includes $512 million that was included in the former Grantor Trust. (b) In the first quarter of 2020, we adopted new accounting guidance included in ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, on a prospective basis. The amortized cost of available-for-sale securities is net of the allowance for credit loss of $12 million. The allowance for credit loss primarily relates to CLOs. See Note 2 for additional information. (c) Includes gross unrealized gains of $25 million and gross unrealized losses of $49 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, 2019 Gross Amortized cost Fair (in millions) Gains Losses Available-for-sale: Agency RMBS $ 27,022 $ 164 $ 143 $ 27,043 U.S. Treasury 14,979 472 20 15,431 Sovereign debt/sovereign guaranteed 12,548 109 11 12,646 Agency commercial MBS 9,231 203 17 9,417 Foreign covered bonds 4,189 15 7 4,197 CLOs 4,078 1 16 4,063 Supranational 3,697 18 6 3,709 Foreign government agencies 2,638 7 2 2,643 Non-agency commercial MBS 2,134 46 2 2,178 Other ABS 2,141 7 5 2,143 U.S. government agencies 1,890 61 2 1,949 Non-agency RMBS (a) 1,038 202 7 1,233 State and political subdivisions 1,017 27 — 1,044 Corporate bonds 832 21 — 853 Other debt securities 1 — — 1 Total securities available-for-sale (b) $ 87,435 $ 1,353 $ 238 $ 88,550 Held-to-maturity: Agency RMBS $ 27,357 $ 292 $ 46 $ 27,603 U.S. Treasury 3,818 28 3 3,843 Agency commercial MBS 1,326 21 3 1,344 U.S. government agencies 1,023 1 2 1,022 Sovereign debt/sovereign guaranteed 756 31 — 787 Non-agency RMBS 80 4 1 83 Foreign covered bonds 79 — — 79 Supranational 27 — — 27 State and political subdivisions 17 — — 17 Total securities held-to-maturity $ 34,483 $ 377 $ 55 $ 34,805 Total securities $ 121,918 $ 1,730 $ 293 $ 123,355 (a) Includes $640 million that was included in the former Grantor Trust. (b) Includes gross unrealized gains of $32 million and gross unrealized losses of $65 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) 3Q20 2Q20 3Q19 YTD20 YTD19 Realized gross gains $ 10 $ 16 $ 1 $ 38 $ 18 Realized gross losses (1) (7) (1) (11) (10) Recognized gross impairments — — (1) — (1) Total net securities gains (losses) $ 9 $ 9 $ (1) $ 27 $ 7 |
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) 3Q20 2Q20 3Q19 YTD20 YTD19 Foreign government agencies $ 5 $ 2 $ — $ 7 $ — U.S. Treasury 1 1 — 7 4 Supranational — 6 — 6 — Sovereign debt/sovereign guaranteed 1 2 — 3 3 State and political subdivisions — — — — 2 Other 2 (2) (1) 4 (2) Total net securities gains (losses) $ 9 $ 9 $ (1) $ 27 $ 7 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table shows the aggregate fair value of available-for-sale 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 without an allowance for credit losses. Available-for-sale securities in an unrealized loss position without an allowance for credit losses at Sept. 30, 2020 (a) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (in millions) Agency RMBS $ 1,126 $ 3 $ 2,102 $ 52 $ 3,228 $ 55 U.S. Treasury 1,041 1 — — 1,041 1 Sovereign debt/sovereign guaranteed 1,069 1 119 — 1,188 1 Agency commercial MBS 566 1 306 2 872 3 Supranational 1,583 1 127 — 1,710 1 CLOs 3,449 31 579 13 4,028 44 U.S. government agencies 99 2 — — 99 2 Other ABS 675 2 229 2 904 4 Non-agency commercial MBS 358 6 194 4 552 10 Non-agency RMBS (b) 636 3 97 6 733 9 State and political subdivisions 262 4 2 — 264 4 Corporate bonds 173 1 — — 173 1 Total securities available-for-sale (c) $ 11,037 $ 56 $ 3,755 $ 79 $ 14,792 $ 135 (a) Includes $370 million of securities with an unrealized loss of greater than $1 million. (b) Includes $22 million of securities with an unrealized loss of $1 million for less than 12 months and $1 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. (c) Includes gross unrealized losses of $49 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 presents the temporarily impaired securities under the disclosure guidance that existed prior to the adoption of ASU 2016-13 and shows the aggregate fair value of available-for-sale 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 Dec. 31, 2019 Less than 12 months 12 months or more Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale: Agency RMBS $ 8,373 $ 33 $ 5,912 $ 110 $ 14,285 $ 143 U.S. Treasury 1,976 16 766 4 2,742 20 Sovereign debt/sovereign guaranteed 4,045 10 225 1 4,270 11 Agency commercial MBS 1,960 12 775 5 2,735 17 Foreign covered bonds 1,009 4 690 3 1,699 7 CLOs 1,066 2 1,499 14 2,565 16 Supranational 1,336 6 360 — 1,696 6 Foreign government agencies 1,706 2 47 — 1,753 2 Non-agency commercial MBS 525 2 45 — 570 2 Other ABS 456 3 305 2 761 5 U.S. government agencies 377 2 — — 377 2 Non-agency RMBS (a) 101 — 113 7 214 7 State and political subdivisions — — 16 — 16 — Corporate bonds 82 — 21 — 103 — Total securities available-for-sale (b) $ 23,012 $ 92 $ 10,774 $ 146 $ 33,786 $ 238 (a) Includes $2 million of securities with an unrealized loss of less than $1 million for less than 12 months and $2 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 $65 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. |
Debt Securities, Held-to-maturity, Credit Quality Indicator | The following table shows the credit quality of the held-to-maturity securities. We have included certain credit ratings information because the information can indicate the degree of credit risk to which we are exposed. Significant changes in ratings classifications could indicate increased credit risk for us and could be accompanied by a reduction in the fair value of our securities portfolio. Held-to-maturity securities portfolio at Sept. 30, 2020 (a) Ratings (b) Net unrealized gain BB+ A1+/A2/SP-1+ (dollars in millions) Amortized AAA/ A+/ BBB+/ Not Agency RMBS $ 37,086 $ 1,107 100 % — % — % — % — % — % U.S. Treasury 3,288 103 100 — — — — — U.S. government agencies 2,266 1 100 — — — — — Agency commercial MBS 2,041 107 100 — — — — — Sovereign debt/sovereign guaranteed (c) 983 41 100 — — — — — Commercial paper/CDs 295 — — — — — 100 — Non-agency RMBS 70 2 39 46 2 12 — 1 Supranational 52 1 100 — — — — — State and political subdivisions 15 — 6 2 6 — — 86 Total held-to-maturity securities $ 46,096 $ 1,362 99 % — % — % — % 1 % — % (a) In the first quarter of 2020, we adopted new accounting guidance included in ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, on a prospective basis. See Note 2 for additional information. (b) Represents ratings by Standard & Poor’s (“S&P”) or the equivalent. (c) Primarily consists of exposure to France, UK and Germany. |
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 Sept. 30, 2020 U.S. Treasury U.S. government State and political Other bonds, notes and debentures Mortgage/ (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 $ 4,405 1.11 % $ 25 2.55 % $ 549 1.49 % $ 11,186 0.44 % $ — — % $ 16,165 Over 1 through 5 years 10,546 1.28 1,866 0.85 570 3.16 17,769 0.61 — — 30,751 Over 5 through 10 years 6,517 1.57 1,468 2.51 223 1.88 3,240 0.56 — — 11,448 Over 10 years 3,265 3.11 119 2.06 348 2.22 233 0.62 — — 3,965 Mortgage-backed securities — — — — — — — — 39,327 2.18 39,327 Asset-backed securities — — — — — — — — 7,587 1.72 7,587 Total $ 24,733 1.57 % $ 3,478 1.60 % $ 1,690 2.26 % $ 32,428 0.55 % $ 46,914 2.10 % $ 109,243 Securities held-to-maturity: One year or less $ 785 1.43 % $ — — % $ — — % $ 307 1.99 % $ — — % $ 1,092 Over 1 through 5 years 2,503 1.90 1,253 0.82 2 5.66 946 0.67 — — 4,704 Over 5 through 10 years — — 564 1.13 — — 32 0.92 — — 596 Over 10 years — — 449 2.28 13 4.76 45 0.35 — — 507 Mortgage-backed securities — — — — — — — — 39,197 2.57 39,197 Total $ 3,288 1.79 % $ 2,266 1.19 % $ 15 4.91 % $ 1,330 0.96 % $ 39,197 2.57 % $ 46,096 (a) Yields are based upon the amortized cost of securities. |
Loans and asset quality (Tables
Loans and asset quality (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio and Industry Concentrations of Credit Risk | The table below provides the details of our loan portfolio. Loans Sept. 30, 2020 Dec. 31, 2019 (in millions) Domestic: Commercial $ 1,839 $ 1,442 Commercial real estate 5,987 5,575 Financial institutions 4,915 4,852 Lease financings 482 537 Wealth management loans and mortgages 15,805 16,050 Other residential mortgages 423 494 Overdrafts 899 524 Other 1,616 1,167 Margin loans 11,220 11,907 Total domestic 43,186 42,548 Foreign: Commercial 102 347 Commercial real estate 5 7 Financial institutions 6,097 7,626 Lease financings 596 576 Wealth management loans and mortgages 121 140 Other (primarily overdrafts) 3,106 2,230 Margin loans 2,278 1,479 Total foreign 12,305 12,405 Total loans (a) $ 55,491 $ 54,953 (a) Net of unearned income of $285 million at Sept. 30, 2020 and $313 million at Dec. 31, 2019 primarily related to domestic and foreign lease financings. |
Summary of Transactions in the Allowance for Credit Losses | Activity in the allowance for credit losses on loans and lending-related commitments is presented below. This does not include activity in the allowance for credit losses related to other financial instruments, including cash and due from banks, interest-bearing deposits with banks, federal funds sold and securities purchased under resale agreements, held-to-maturity securities, available-for-sale securities and accounts receivable. Allowance for credit losses activity for the quarter ended Sept. 30, 2020 Wealth management loans and mortgages Other (in millions) Commercial Commercial Financial Lease Total Beginning balance $ 40 $ 372 $ 16 $ 3 $ 11 $ 12 $ 454 Charge-offs — — — — — — — Recoveries — — — — — 1 1 Net recoveries — — — — — 1 1 Provision (a) (13) 14 (5) — 4 5 5 Ending balance (b) $ 27 $ 386 $ 11 $ 3 $ 15 $ 18 $ 460 Allowance for: Loan losses $ 14 $ 270 $ 7 $ 3 $ 13 $ 18 $ 325 Lending-related commitments 13 116 4 — 2 — 135 Individually evaluated for impairment: Loan balance $ — $ — $ — $ — $ 17 (c) $ — $ 17 Allowance for loan losses — — — — — — — (a) Does not include provision for credit losses related to other financial instruments of $4 million for the third quarter 2020. (b) Includes $8 million of allowance for credit losses related to foreign loans, primarily financial institutions. (c) Includes collateral dependent loans of $17 million with $25 million of collateral at fair value. Allowance for credit losses activity for the quarter ended June 30, 2020 Wealth management loans and mortgages Other (in millions) Commercial Commercial Financial Lease Total Beginning balance $ 26 $ 208 $ 18 $ 13 $ 9 $ 14 $ 288 Charge-offs — — — — — — — Recoveries — — — — — 3 3 Net recoveries — — — — — 3 3 Provision (a) 14 164 (2) (10) 2 (5) 163 Ending balance (b) $ 40 $ 372 $ 16 $ 3 $ 11 $ 12 $ 454 Allowance for: Loan losses $ 23 $ 244 $ 11 $ 3 $ 9 $ 12 $ 302 Lending-related commitments 17 128 5 — 2 — 152 Individually evaluated for impairment: Loan balance $ — $ — $ — $ — $ 18 (c) $ — $ 18 Allowance for loan losses — — — — — — — (a) Does not include provision for credit losses related to other financial instruments of $(20) million for the second quarter 2020. (b) Includes $11 million of allowance for credit losses related to foreign loans, primarily financial institutions. (c) Includes collateral dependent loans of $18 million with $26 million of collateral at fair value. Allowance for credit losses activity for the quarter ended Sept. 30, 2019 Wealth management loans and mortgages Other All Foreign Total (in millions) Commercial Commercial Financial Lease Beginning balance $ 77 $ 72 $ 21 $ 4 $ 20 $ 14 $ — $ 33 $ 241 Charge-offs (1) — — — — — — — (1) Recoveries — — — — — — — — — Net (charge-offs) (1) — — — — — — — (1) Provision (15) 5 — (1) — — — (5) (16) Ending balance $ 61 $ 77 $ 21 $ 3 $ 20 $ 14 $ — $ 28 $ 224 Allowance for: Loan losses $ 10 $ 57 $ 7 $ 3 $ 17 $ 14 $ — $ 19 $ 127 Lending-related commitments 51 20 14 — 3 — — 9 97 Individually evaluated for impairment: Loan balance $ — $ — $ — $ — $ 16 $ — $ — $ — $ 16 Allowance for loan losses — — — — — — — — — Collectively evaluated for impairment: Loan balance $ 1,335 $ 5,292 $ 4,973 $ 559 $ 15,748 $ 520 $ 12,567 (a) $ 13,871 $ 54,865 Allowance for loan losses 10 57 7 3 17 14 — 19 127 (a) Includes $1,247 million of domestic overdrafts, $10,177 million of margin loans and $1,143 million of other loans at Sept. 30, 2019. Allowance for credit losses activity for the nine months ended Sept. 30, 2020 Wealth management loans and mortgages Other Foreign Total (in millions) Commercial Commercial Financial Lease (a) Balance at Dec. 31, 2019 $ 60 $ 76 $ 20 $ 3 $ 20 $ 13 $ 24 $ 216 Impact of adopting ASU 2016-13 (43) 14 (6) — (12) 2 (24) (69) Balance at Jan. 1, 2020 17 90 14 3 8 15 — 147 Charge-offs — — — — — — — — Recoveries — — — — — 4 — 4 Net recoveries — — — — — 4 — 4 Provision (b) 10 296 (3) — 7 (1) — 309 Ending balance $ 27 $ 386 $ 11 $ 3 $ 15 $ 18 $ — $ 460 (a) The allowance related to foreign exposure has been reclassified to financial institutions ($10 million), commercial ($10 million) and lease financings ($4 million). (b) Does not include provision for credit losses related to other financial instruments of $12 million for the nine months ended Sept. 30, 2020. Allowance for credit losses activity for the nine months ended Sept. 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 (12) — — — (1) — — — (13) Recoveries — — — — — 2 — — 2 Net (charge-offs) recoveries (12) — — — (1) 2 — — (11) Provision (8) 2 (1) (2) — (4) — (4) (17) Ending balance $ 61 $ 77 $ 21 $ 3 $ 20 $ 14 $ — $ 28 $ 224 |
Distribution of Nonperforming Assets | The table below presents our nonperforming assets. Nonperforming assets Sept. 30, 2020 Dec. 31, 2019 Recorded investment With an Without an allowance (in millions) Total Nonperforming loans: Other residential mortgages $ 56 $ — $ 56 $ 62 Wealth management loans and mortgages 10 17 27 24 Total nonperforming loans 66 17 83 86 Other assets owned — 1 1 3 Total nonperforming assets $ 66 $ 18 $ 84 $ 89 |
Information about Past Due Loans | The table below presents our past due loans. Past due loans and still accruing interest Sept. 30, 2020 Dec. 31, 2019 Days past due Total Days past due Total (in millions) 30-59 60-89 ≥90 30-59 60-89 ≥90 Wealth management loans and mortgages $ 20 $ 1 $ — $ 21 $ 22 $ 5 $ — $ 27 Other residential mortgages 7 — — 7 8 3 — 11 Financial institutions — — — — 1 30 — 31 Commercial real estate 9 — — 9 6 12 — 18 Total past due loans $ 36 $ 1 $ — $ 37 $ 37 $ 50 $ — $ 87 |
Credit Profile of Loan Portfolio by Origination | The table below provides information about the credit profile of the loan portfolio by the period of origination. Credit profile of the loan portfolio Sept. 30, 2020 Revolving loans Originated, at amortized cost Amortized cost Converted to term loans - Amortized cost Accrued (in millions) YTD20 2019 2018 2017 2016 Prior to 2016 Total (a) Commercial: Investment grade $ 153 $ 73 $ 96 $ 450 $ 57 $ — $ 893 $ — $ 1,722 Non-investment grade 85 61 7 — — — 66 — 219 Total commercial 238 134 103 450 57 — 959 — 1,941 $ 1 Commercial real estate: Investment grade 611 1,065 542 543 385 430 175 — 3,751 Non-investment grade 160 526 604 159 367 152 244 29 2,241 Total commercial real estate 771 1,591 1,146 702 752 582 419 29 5,992 8 Financial institutions: Investment grade 60 238 47 125 14 165 8,471 — 9,120 Non-investment grade 98 36 — — — — 1,758 — 1,892 Total financial institutions 158 274 47 125 14 165 10,229 — 11,012 13 Wealth management loans and mortgages: Investment grade 31 80 11 149 56 85 7,235 — 7,647 Non-investment grade — — — — — — 63 — 63 Wealth management mortgages 781 1,082 682 1,267 1,622 2,748 34 — 8,216 Total wealth management loans and mortgages 812 1,162 693 1,416 1,678 2,833 7,332 — 15,926 29 Lease financings 126 19 17 10 25 881 — — 1,078 — Other residential mortgages — — — — — 423 — — 423 2 Other loans — — — — — — 1,658 — 1,658 1 Margin loans 3,553 — — — — — 9,945 — 13,498 7 Total loans $ 5,658 $ 3,180 $ 2,006 $ 2,703 $ 2,526 $ 4,884 $ 30,542 $ 29 $ 51,528 $ 61 (a) Excludes overdrafts of $3,963 million. Overdrafts occur on a daily basis primarily in the custody and securities clearance business and are generally repaid within two |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 and Wealth Other Consolidated Balance at Dec. 31, 2019 $ 8,332 $ 9,007 $ 47 $ 17,386 Foreign currency translation 21 (50) — (29) Other (a) 47 — (47) — Balance at Sept. 30, 2020 $ 8,400 $ 8,957 $ — $ 17,357 (a) Reflects the transfer of goodwill associated with the Capital Markets business. Goodwill by business (in millions) Investment Investment and Wealth Management Other Consolidated Balance at Dec. 31, 2018 $ 8,333 $ 8,970 $ 47 $ 17,350 Foreign currency translation (45) (57) — (102) Balance at Sept. 30, 2019 $ 8,288 $ 8,913 $ 47 $ 17,248 |
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 and Wealth Management Other Consolidated Balance at Dec. 31, 2019 $ 678 $ 1,580 $ 849 $ 3,107 Amortization (54) (24) — (78) Foreign currency translation 1 (4) — (3) Balance at Sept. 30, 2020 $ 625 $ 1,552 $ 849 $ 3,026 Intangible assets – net carrying amount by business (in millions) Investment Investment and Wealth Management Other Consolidated Balance at Dec. 31, 2018 $ 758 $ 1,613 $ 849 $ 3,220 Amortization (61) (28) — (89) Foreign currency translation (1) (6) — (7) Balance at Sept. 30, 2019 $ 696 $ 1,579 $ 849 $ 3,124 |
Breakdown of Intangible Assets by Type | The table below provides a breakdown of intangible assets by type. Intangible assets Sept. 30, 2020 Dec. 31, 2019 (in millions) Gross Accumulated Net Remaining Gross Accumulated Net Subject to amortization: (a) Customer contracts—Investment Services $ 1,482 $ (1,228) $ 254 10 years $ 1,520 $ (1,214) $ 306 Customer relationships—Investment and Wealth Management 711 (563) 148 10 years 712 (544) 168 Other 64 (21) 43 14 years 64 (16) 48 Total subject to amortization 2,257 (1,812) 445 10 years 2,296 (1,774) 522 Not subject to amortization: (b) Tradenames 1,292 N/A 1,292 N/A 1,293 N/A 1,293 Customer relationships 1,289 N/A 1,289 N/A 1,292 N/A 1,292 Total not subject to amortization 2,581 N/A 2,581 N/A 2,585 N/A 2,585 Total intangible assets $ 4,838 $ (1,812) $ 3,026 N/A $ 4,881 $ (1,774) $ 3,107 (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) 2020 $ 104 2021 81 2022 63 2023 52 2024 45 |
Other assets (Tables)
Other assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 Sept. 30, 2020 Dec. 31, 2019 (in millions) Corporate/bank-owned life insurance $ 5,276 $ 5,219 Accounts receivable 3,549 3,802 Fails to deliver 2,192 1,671 Software 1,832 1,590 Prepaid pension assets 1,599 1,464 Equity in a joint venture and other investments 1,190 1,102 Renewable energy investments 1,057 1,144 Qualified affordable housing project investments 997 1,024 Prepaid expense 522 491 Federal Reserve Bank stock 478 466 Income taxes receivable 332 388 Seed capital 200 184 Fair value of hedging derivatives 56 21 Other (a) 1,499 1,655 Total other assets $ 20,779 $ 20,221 (a) At Sept. 30, 2020 and Dec. 31, 2019, other assets include $8 million and $22 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. Adjustments on non-readily marketable equity securities Life-to-date (in millions) 3Q20 2Q20 3Q19 YTD20 YTD19 Upward adjustments $ 4 $ 2 $ 1 $ 10 $ 3 $ 42 Downward adjustments — — — — (1) (4) Net adjustments $ 4 $ 2 $ 1 $ 10 $ 2 $ 38 |
Summary of Investments Valued Using NAV | The table below presents information on our investments valued using NAV. Investments valued using NAV Sept. 30, 2020 Dec. 31, 2019 (in millions) Fair value Unfunded Fair value Unfunded Seed capital (a) $ 44 $ 11 $ 59 $ — Private equity investments (SBICs) (b) 97 55 89 55 Other (c) 43 — 33 — Total $ 184 $ 66 $ 181 $ 55 (a) Primarily includes leveraged loans and structured credit funds, which are generally not redeemable. Distributions from such investments will be received as the underlying investments in the funds, which have lives of six of six years at Dec. 31, 2019, are liquidated. (b) 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. |
Contract revenue (Tables)
Contract revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents fee revenue related to contracts with customers, disaggregated by type of fee revenue, for each business segment. 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. Disaggregation of contract revenue by business segment Quarter ended Sept. 30, 2020 June 30, 2020 Sept. 30, 2019 (a) (in millions) IS IWM Other Total IS IWM Other Total IS IWM Other Total Fee revenue - contract revenue: Investment services fees: Asset servicing fees $ 1,143 $ 25 $ (13) $ 1,155 $ 1,147 $ 25 $ (15) $ 1,157 $ 1,106 $ 20 $ (5) $ 1,121 Clearing services fees 397 — — 397 431 — — 431 419 — — 419 Issuer services fees 296 — — 296 277 — — 277 324 — — 324 Treasury services fees 153 1 (2) 152 144 — 1 145 140 — — 140 Total investment services fees 1,989 26 (15) 2,000 1,999 25 (14) 2,010 1,989 20 (5) 2,004 Investment management and performance fees 4 838 (3) 839 4 792 (5) 791 4 829 (4) 829 Financing-related fees 13 1 1 15 23 1 — 24 14 — — 14 Distribution and servicing (2) 31 — 29 (7) 34 — 27 (12) 45 — 33 Investment and other income 57 (33) (2) 22 62 (41) 3 24 72 (50) — 22 Total fee revenue - contract revenue 2,061 863 (19) 2,905 2,081 811 (16) 2,876 2,067 844 (9) 2,902 Fee and other revenue - not in scope of Accounting Standards Codification (“ASC”) 606 (b)(c) 185 8 39 232 258 27 54 339 229 (6) 3 226 Total fee and other revenue (loss) $ 2,246 $ 871 $ 20 $ 3,137 $ 2,339 $ 838 $ 38 $ 3,215 $ 2,296 $ 838 $ (6) $ 3,128 (a) Restated to reflect the first quarter 2020 business segment reclassifications. There was no impact on total revenue, by type or in aggregate. See Note 19 for additional information related to the reclassifications. (b) Primarily includes foreign exchange and other trading revenue, financing-related fees, investment and other income (loss), asset servicing fees and net securities gains (losses), all of which are accounted for using other accounting guidance. (c) The Investment and Wealth Management business segment includes income fr om consolidated investment management funds, net of noncontrolling interests, of $20 million in the third quarter of 2020, $39 million in the second quarter of 2020 and $— million in the third quarter of 2019. IS - Investment Services business segment. IWM - Investment and Wealth Management business segment. Disaggregation of contract revenue by business segment Year-to-date Sept. 30, 2020 Sept. 30, 2019 (a) (in millions) IS IWM Other Total IS IWM Other Total Fee revenue - contract revenue: Investment services fees: Asset servicing fees $ 3,417 $ 73 $ (39) $ 3,451 $ 3,282 $ 60 $ (19) $ 3,323 Clearing services fees 1,298 — — 1,298 1,228 — (1) 1,227 Issuer services fees 836 — — 836 866 — — 866 Treasury services fees 446 1 (1) 446 412 1 — 413 Total investment services fees 5,997 74 (40) 6,031 5,788 61 (20) 5,829 Investment management and performance fees 13 2,492 (12) 2,493 12 2,503 (12) 2,503 Financing-related fees 64 2 1 67 47 — 1 48 Distribution and servicing (21) 108 — 87 (39) 134 — 95 Investment and other income 191 (124) 1 68 210 (147) — 63 Total fee revenue - contract revenue 6,244 2,552 (50) 8,746 6,018 2,551 (31) 8,538 Fee and other revenue - not in scope of ASC 606 (b)(c) 777 3 138 918 672 10 74 756 Total fee and other revenue $ 7,021 $ 2,555 $ 88 $ 9,664 $ 6,690 $ 2,561 $ 43 $ 9,294 (a) Restated to reflect the first quarter 2020 business segment reclassifications. There was no impact on total revenue, by type or in aggregate. See Note 19 for additional information related to the reclassifications. (b) Primarily includes foreign exchange and other trading revenue, financing-related fees, investment and other income (loss), asset servicing fees and net securities gains (losses), all of which are accounted for using other accounting guidance. (c) The Investment and Wealth Management business segment includes income from consolidated investment management funds, net of noncontrolling interests, of $39 million in the first nine months of 2020 and $22 million in the first nine months of 2019. IS - Investment Services business segment. IWM - Investment and Wealth Management business segment. |
Net interest revenue (Tables)
Net interest revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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) Sept. 30, 2020 June 30, 2020 Sept. 30, 2019 Sept. 30, 2020 Sept. 30, 2019 Interest revenue Deposits with the Federal Reserve and other central banks $ (10) $ (7) $ 102 $ 63 $ 354 Deposits with banks 20 40 73 118 200 Federal funds sold and securities purchased under resale agreements 48 61 660 505 1,702 Margin loans 41 40 104 168 358 Non-margin loans 199 230 287 (a) 738 1,007 (a) Securities: Taxable 499 556 669 1,649 2,062 Exempt from federal income taxes 7 6 7 19 29 Total securities 506 562 676 1,668 2,091 Trading securities 16 17 40 73 115 Total interest revenue 820 943 1,942 3,333 5,827 Interest expense Deposits (29) (17) 437 194 1,260 Federal funds purchased and securities sold under repurchase agreements 6 1 443 282 1,146 Trading liabilities 2 2 8 11 26 Other borrowed funds 3 7 10 14 54 Commercial paper — 1 22 7 48 Customer payables — (1) 59 29 198 Long-term debt 135 170 233 499 722 Total interest expense 117 163 1,212 1,036 3,454 Net interest revenue 703 780 730 2,297 2,373 Provision for credit losses 9 143 (16) 321 (17) Net interest revenue after provision for credit losses $ 694 $ 637 $ 746 $ 1,976 $ 2,390 (a) Includes the impact of a lease-related impairment of $70 million. |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Combined Data for Domestic and Foreign Defined Benefit Pension and Post Retirement Healthcare Plans | The components of net periodic benefit (credit) cost are presented below. 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 Sept. 30, 2020 June 30, 2020 Sept. 30, 2019 (in millions) Domestic Foreign Health Domestic Foreign Health Domestic Foreign Health Service cost $ — $ 3 $ — $ — $ 3 $ — $ — $ 3 $ — Interest cost 39 7 2 39 6 1 44 8 2 Expected return on assets (80) (10) (2) (79) (9) (2) (84) (11) (1) Other 22 2 (1) 21 3 — 13 — (1) Net periodic benefit (credit) cost $ (19) $ 2 $ (1) $ (19) $ 3 $ (1) $ (27) $ — $ — Net periodic benefit (credit) cost Year-to-date Sept. 30, 2020 Sept. 30, 2019 (in millions) Domestic Foreign Health Domestic Foreign Health Service cost $ — $ 9 $ — $ — $ 9 $ — Interest cost 117 20 4 133 24 5 Expected return on assets (239) (29) (5) (252) (34) (5) Other 65 8 (2) 39 1 (2) Net periodic benefit (credit) cost $ (57) $ 8 $ (3) $ (80) $ — $ (2) |
Variable interest entities an_2
Variable interest entities and securitization (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 the consolidated balance sheet as of Sept. 30, 2020 and Dec. 31, 2019. 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 we invested in the VIE. Consolidated investments Sept. 30, 2020 Dec. 31, 2019 (in millions) Investment Securitization Total Investment Securitization Total Trading assets $ 579 $ 400 $ 979 $ 229 $ 400 $ 629 Other assets 9 — 9 16 — 16 Total assets $ 588 (a) $ 400 $ 988 $ 245 (b) $ 400 $ 645 Other liabilities $ 4 $ 400 $ 404 $ 1 $ 387 $ 388 Total liabilities $ 4 (a) $ 400 $ 404 $ 1 (b) $ 387 $ 388 Nonredeemable noncontrolling interests $ 251 (a) $ — $ 251 $ 102 (b) $ — $ 102 (a) Includes voting model entities (“VMEs”) with assets of $226 million, liabilities of $1 million and nonredeemable noncontrolling interests of $31 million. (b) Includes VMEs with assets of $50 million, liabilities of $1 million and nonredeemable noncontrolling interests of $1 million. |
Schedule of Variable Interest Entities | As of Sept. 30, 2020 and Dec. 31, 2019, the following assets and liabilities related to the VIEs where we are not the primary beneficiary were included in our consolidated balance sheets and primarily related 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 our investments in, and unfunded commitments to, the VIEs. Non-consolidated VIEs Sept. 30, 2020 Dec. 31, 2019 (in millions) Assets Liabilities Maximum Assets Liabilities Maximum Securities - Available-for-sale (a) $ 206 $ — $ 206 $ 208 $ — $ 208 Other 2,278 388 2,675 2,400 422 2,822 (a) Includes investments in the Company’s sponsored CLOs. |
Preferred stock (Tables)
Preferred stock (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Preferred Stock Summary | The following table summarizes the Parent’s preferred stock issued and outstanding at Sept. 30, 2020 and Dec. 31, 2019. Preferred stock summary (a) Total shares issued and outstanding Carrying value (b) (in millions) Sept. 30, 2020 Dec. 31, 2019 Sept. 30, 2020 Dec. 31, 2019 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 but excluding 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 but excluding Sept. 20, 2026, then a floating rate equal to the three-month LIBOR plus 3.131% 10,000 10,000 990 990 Series G 4.70% to but excluding Sept. 20, 2025, then a floating rate equal to the five-year treasury rate plus 4.358% 10,000 — 990 — Total 45,826 35,826 $ 4,532 $ 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, Series F and Series G preferred stock is recorded net of issuance costs. |
Summary of Preferred Dividends Paid | The table below presents the dividends paid on the Parent’s preferred stock. Preferred dividends paid (dollars in millions, except per share amounts) Depositary shares 3Q20 2Q20 3Q19 YTD20 YTD19 Per share Total Per share Total Per share Total Per share Total Per share Total Series A 100 (a) $ 1,011.11 $ 5 $ 1,022.22 $ 5 $ 1,022.22 $ 5 $ 3,044.44 $ 15 $ 3,044.44 $ 15 Series C 4,000 1,300.00 7 1,300.00 8 1,300.00 8 3,900.00 23 3,900.00 23 Series D 100 N/A — 2,250.00 11 N/A — 2,250.00 11 2,250.00 11 Series E 100 962.65 10 2,475.00 25 N/A — 3,437.65 35 2,475.00 25 Series F 100 2,312.50 23 N/A — 2,312.50 23 4,625.00 46 4,625.00 46 Series G 100 1,579.72 16 N/A — N/A — 1,579.72 16 N/A — Total $ 61 $ 49 $ 36 $ 146 $ 120 (a) Represents Normal Preferred Capital Securities. N/A - Not applicable. |
Other comprehensive income (l_2
Other comprehensive income (loss) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Components of Other Comprehensive Income (Loss) | Components of other comprehensive income (loss) Quarter ended Sept. 30, 2020 June 30, 2020 Sept. 30, 2019 (in millions) Pre-tax Tax After-tax Pre-tax Tax After-tax Pre-tax Tax After-tax Foreign currency translation: Foreign currency translation adjustments arising during the period (a) $ 262 $ 69 $ 331 $ 104 $ 11 $ 115 $ (213) $ (63) $ (276) Total foreign currency translation 262 69 331 104 11 115 (213) (63) (276) Unrealized gain on assets available-for-sale: Unrealized gain arising during period 297 (64) 233 989 (236) 753 88 (25) 63 Reclassification adjustment (b) (9) 3 (6) (9) 2 (7) 1 — 1 Net unrealized gain on assets available-for-sale 288 (61) 227 980 (234) 746 89 (25) 64 Defined benefit plans: Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost (b) 24 (4) 20 24 (5) 19 13 (3) 10 Total defined benefit plans 24 (4) 20 24 (5) 19 13 (3) 10 Unrealized gain (loss) on cash flow hedges: Unrealized hedge gain (loss) arising during period 9 (1) 8 3 (1) 2 (9) 4 (5) Reclassification of net (gain) loss to net income: Interest rate contracts - interest expense — — — — — — 1 — 1 Foreign exchange (“FX”) contracts - staff expense — — — 3 (1) 2 (2) — (2) Total reclassifications to net income — — — 3 (1) 2 (1) — (1) Net unrealized gain (loss) on cash flow hedges 9 (1) 8 6 (2) 4 (10) 4 (6) Total other comprehensive income (loss) $ 583 $ 3 $ 586 $ 1,114 $ (230) $ 884 $ (121) $ (87) $ (208) (a) Includes the impact of hedges of net investments in foreign subsidiaries. See Note 17 for additional information. (b) The reclassification adjustment related to the unrealized gain (loss) on assets available-for-sale is recorded as net securities gains on the consolidated income statement. The amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost is recorded as staff expense on the consolidated income statement. Components of other comprehensive income (loss) Year-to-date Sept. 30, 2020 Sept. 30, 2019 (in millions) Pre-tax Tax After-tax Pre-tax Tax After-tax Foreign currency translation: Foreign currency translation adjustments arising during the period (a) $ 101 $ (24) $ 77 $ (157) $ (80) $ (237) Total foreign currency translation 101 (24) 77 (157) (80) (237) Unrealized gain on assets available-for-sale: Unrealized gain (loss) arising during period 1,529 (360) 1,169 794 (205) 589 Reclassification adjustment (b) (27) 7 (20) (7) 2 (5) Net unrealized gain on assets available-for-sale 1,502 (353) 1,149 787 (203) 584 Defined benefit plans: Net (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) 72 (15) 57 38 (8) 30 Total defined benefit plans 72 (15) 57 27 (6) 21 Unrealized (loss) gain on cash flow hedges: Unrealized hedge (loss) arising during period (1) 1 — (1) (2) (3) Reclassification of net loss (gain) to net income : Interest rate contracts - interest expense — — — 1 — 1 FX contracts - staff expense 2 (1) 1 (1) 2 1 Total reclassifications to net income 2 (1) 1 — 2 2 Net unrealized (loss) on cash flow hedges 1 — 1 (1) — (1) Total other comprehensive income $ 1,676 $ (392) $ 1,284 $ 656 $ (289) $ 367 (a) Includes the impact of hedges of net investments in foreign subsidiaries. See Note 17 for additional information. (b) The reclassification adjustment related to the unrealized gain (loss) on assets available-for-sale is recorded as net securities gains on the consolidated income statement. The amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost is recorded as staff expense on the consolidated income statement. |
Fair value measurement (Tables)
Fair value measurement (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 Sept. 30, 2020 and Dec. 31, 2019, 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 Sept. 30, 2020 Total carrying (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Available-for-sale securities: Agency RMBS $ — $ 24,733 $ — $ — $ 24,733 U.S. Treasury 24,733 — — — 24,733 Sovereign debt/sovereign guaranteed 7,179 6,914 — — 14,093 Agency commercial MBS — 9,942 — — 9,942 Supranational — 7,136 — — 7,136 Foreign covered bonds — 5,841 — — 5,841 CLOs — 4,657 — — 4,657 Foreign government agencies — 3,970 — — 3,970 U.S. government agencies — 3,478 — — 3,478 Other ABS — 2,930 — — 2,930 Non-agency commercial MBS — 2,711 — — 2,711 Non-agency RMBS (b) — 1,941 — — 1,941 State and political subdivisions — 1,690 — — 1,690 Corporate bonds — 1,030 — — 1,030 Commercial paper/CDs — 357 — — 357 Other debt securities — 1 — — 1 Total available-for-sale securities 31,912 77,331 — — 109,243 Trading assets: Debt instruments 3,181 3,050 — — 6,231 Equity instruments (c) 2,694 — — — 2,694 Derivative assets not designated as hedging: Interest rate 4 4,958 — (2,133) 2,829 Foreign exchange — 4,410 — (3,102) 1,308 Equity and other contracts 4 11 — (3) 12 Total derivative assets not designated as hedging 8 9,379 — (5,238) 4,149 Total trading assets 5,883 12,429 — (5,238) 13,074 Other assets: Derivative assets designated as hedging: Foreign exchange — 56 — — 56 Total derivative assets designated as hedging — 56 — — 56 Other assets (d) 113 174 — — 287 Assets measured at NAV (d) 184 Subtotal assets of operations at fair value 37,908 89,990 — (5,238) 122,844 Percentage of assets of operations prior to netting 30 % 70 % — % Assets of consolidated investment management funds 360 228 — — 588 Total assets $ 38,268 $ 90,218 $ — $ (5,238) $ 123,432 Percentage of total assets prior to netting 30 % 70 % — % Liabilities measured at fair value on a recurring basis at Sept. 30, 2020 Total carrying (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Trading liabilities: Debt instruments $ 3,396 $ 66 $ — $ — $ 3,462 Equity instruments 26 — — — 26 Derivative liabilities not designated as hedging: Interest rate 3 4,243 — (2,551) 1,695 Foreign exchange — 4,522 — (3,631) 891 Equity and other contracts — 11 — (1) 10 Total derivative liabilities not designated as hedging 3 8,776 — (6,183) 2,596 Total trading liabilities 3,425 8,842 — (6,183) 6,084 Long-term debt (c) — 400 — — 400 Other liabilities – derivative liabilities designated as hedging: Interest rate — 803 — — 803 Foreign exchange — 194 — — 194 Total other liabilities – derivative liabilities designated as hedging — 997 — — 997 Subtotal liabilities of operations at fair value 3,425 10,239 — (6,183) 7,481 Percentage of liabilities of operations prior to netting 25 % 75 % — % Liabilities of consolidated investment management funds — 4 — — 4 Total liabilities $ 3,425 $ 10,243 $ — $ (6,183) $ 7,485 Percentage of total liabilities prior to netting 25 % 75 % — % (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 $512 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, 2019 Total carrying (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Available-for-sale securities: Agency RMBS $ — $ 27,043 $ — $ — $ 27,043 U.S. Treasury 15,431 — — — 15,431 Sovereign debt/sovereign guaranteed 7,784 4,862 — — 12,646 Agency commercial MBS — 9,417 — — 9,417 Foreign covered bonds — 4,197 — — 4,197 CLOs — 4,063 — — 4,063 Supranational — 3,709 — — 3,709 Foreign government agencies — 2,643 — — 2,643 Non-agency commercial MBS — 2,178 — — 2,178 Other ABS — 2,143 — — 2,143 U.S. government agencies — 1,949 — — 1,949 Non-agency RMBS (b) — 1,233 — — 1,233 State and political subdivisions — 1,044 — — 1,044 Corporate bonds — 853 — — 853 Other debt securities — 1 — — 1 Total available-for-sale securities 23,215 65,335 — — 88,550 Trading assets: Debt instruments 1,568 4,243 — — 5,811 Equity instruments (c) 4,539 — — — 4,539 Derivative assets not designated as hedging: Interest rate 4 3,686 — (1,792) 1,898 Foreign exchange — 5,331 — (4,021) 1,310 Equity and other contracts — 19 — (6) 13 Total derivative assets not designated as hedging 4 9,036 — (5,819) 3,221 Total trading assets 6,111 13,279 — (5,819) 13,571 Other assets : Derivative assets designated as hedging: Foreign exchange — 21 — — 21 Total derivative assets designated as hedging — 21 — — 21 Other assets (d) 38 179 — — 217 Assets measured at NAV (d) 181 Subtotal assets of operations at fair value 29,364 78,814 — (5,819) 102,540 Percentage of assets of operations prior to netting 27 % 73 % — % Assets of consolidated investment management funds 212 33 — — 245 Total assets $ 29,576 $ 78,847 $ — $ (5,819) $ 102,785 Percentage of total assets prior to netting 27 % 73 % — % Liabilities measured at fair value on a recurring basis at Dec. 31, 2019 Total carrying (dollars in millions) Level 1 Level 2 Level 3 Netting (a) Trading liabilities: Debt instruments $ 1,477 $ 107 $ — $ — $ 1,584 Equity instruments 73 — — — 73 Derivative liabilities not designated as hedging: Interest rate 6 3,244 — (1,986) 1,264 Foreign exchange — 5,340 — (3,428) 1,912 Equity and other contracts 3 6 — (1) 8 Total derivative liabilities not designated as hedging 9 8,590 — (5,415) 3,184 Total trading liabilities 1,559 8,697 — (5,415) 4,841 Long-term debt (c) — 387 — — 387 Other liabilities – derivative liabilities designated as hedging: Interest rate — 350 — — 350 Foreign exchange — 257 — — 257 Total other liabilities – derivative liabilities designated as hedging — 607 — — 607 Subtotal liabilities of operations at fair value 1,559 9,691 — (5,415) 5,835 Percentage of liabilities of operations prior to netting 14 % 86 % — % Liabilities of consolidated investment management funds 1 — — — 1 Total liabilities $ 1,560 $ 9,691 $ — $ (5,415) $ 5,836 Percentage of total liabilities prior to netting 14 % 86 % — % (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 $640 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 Sept. 30, 2020 Dec. 31, 2019 Total Ratings (a) Total Ratings (a) AAA/ A+/ BBB+/ BB+ and AAA/ A+/ BBB+/ BB+ and (dollars in millions) (b) (b) Non-agency RMBS (c) , originated in: 2007-2020 $ 1,311 88 % — % — % 12 % $ 464 55 % 1 % — % 44 % 2006 244 — 23 — 77 291 — 21 — 79 2005 243 4 — 7 89 305 5 2 8 85 2004 and earlier 143 20 9 12 59 173 22 24 4 50 Total non-agency RMBS $ 1,941 61 % 4 % 2 % 33 % $ 1,233 25 % 9 % 3 % 63 % Non-agency commercial MBS originated in: 2009-2020 $ 2,711 100 % — % — % — % $ 2,178 98 % 2 % — % — % Foreign covered bonds: Canada $ 2,368 98 % 2 % — % — % $ 1,798 100 % — % — % — % UK 1,130 100 — — — 984 100 — — — Australia 775 100 — — — 431 100 — — — Norway 609 100 — — — 287 100 — — — Germany 479 100 — — — 357 100 — — — Other 480 100 — — — 340 100 — — — Total foreign covered bonds $ 5,841 99 % 1 % — % — % $ 4,197 100 % — % — % — % Sovereign debt/sovereign guaranteed: Germany $ 2,155 100 % — % — % — % $ 1,997 100 % — % — % — % UK 2,037 100 — — — 3,318 100 — — — Italy 1,974 — — 100 — 1,260 — — 100 — France 1,846 100 — — — 1,272 100 — — — Spain 1,835 — 5 95 — 1,453 — 6 94 — Singapore 949 100 — — — 742 100 — — — Canada 732 100 — — — 271 100 — — — Ireland 522 — 100 — — 301 — 100 — — Netherlands 471 100 — — — 791 100 — — — Japan 437 — 100 — — 274 — 100 — — Austria 294 100 — — — 240 100 — — — Belgium 253 100 — — — 79 100 — — — Hong Kong 206 100 — — — 411 100 — — — Other (d) 382 51 — 18 31 237 39 4 — 57 Total sovereign debt/sovereign guaranteed $ 14,093 65 % 7 % 27 % 1 % $ 12,646 73 % 5 % 21 % 1 % Foreign government agencies: Germany $ 1,483 100 % — % — % — % $ 1,131 100 % — % — % — % Netherlands 800 100 — — — 678 100 — — — Canada 442 72 28 — — 71 — 100 — — France 293 100 — — — 42 100 — — — Sweden 276 100 — — — 202 100 — — — Finland 246 100 — — — 245 100 — — — Other 430 77 23 — — 274 79 21 — — Total foreign government agencies $ 3,970 94 % 6 % — % — % $ 2,643 95 % 5 % — % — % (a) Represents ratings by S&P or the equivalent. (b) At Sept. 30, 2020 and Dec. 31, 2019, 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 $512 million at Sept. 30, 2020 and $640 million at Dec. 31, 2019 that were included in the former Grantor Trust. (d) Includes non-investment grade sovereign debt/sovereign guaranteed securities related to Brazil of $119 million at Sept. 30, 2020 and $134 million at Dec. 31, 2019. |
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 Sept. 30, 2020 and Dec. 31, 2019. Assets measured at fair value on a nonrecurring basis Sept. 30, 2020 Dec. 31, 2019 Total carrying Total carrying (in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Loans (a) $ — $ 52 $ — $ 52 $ — $ 58 $ — $ 58 Other assets (b) — 113 — 113 — 64 — 64 Total assets at fair value on a nonrecurring basis $ — $ 165 $ — $ 165 $ — $ 122 $ — $ 122 (a) The fair value of these loans decreased less than $1 million in the third quarter of 2020 and the fourth quarter of 2019, based on the fair value of the underlying collateral, as required by guidance in ASC 326, Financial Instruments – Credit Losses, 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 Sept. 30, 2020 and Dec. 31, 2019, by caption on the consolidated balance sheet and by the valuation hierarchy. Summary of financial instruments Sept. 30, 2020 (in millions) Level 1 Level 2 Level 3 Total Carrying Assets: Interest-bearing deposits with the Federal Reserve and other central banks $ — $ 106,185 $ — $ 106,185 $ 106,185 Interest-bearing deposits with banks — 19,037 — 19,037 19,027 Federal funds sold and securities purchased under resale agreements — 29,647 — 29,647 29,647 Securities held-to-maturity 4,415 43,043 — 47,458 46,096 Loans (a) — 54,475 — 54,475 54,088 Other financial assets 4,104 1,121 — 5,225 5,225 Total $ 8,519 $ 253,508 $ — $ 262,027 $ 260,268 Liabilities: Noninterest-bearing deposits $ — $ 79,470 $ — $ 79,470 $ 79,470 Interest-bearing deposits — 216,499 — 216,499 216,842 Federal funds purchased and securities sold under repurchase agreements — 15,907 — 15,907 15,907 Payables to customers and broker-dealers — 23,514 — 23,514 23,514 Commercial paper — 671 — 671 671 Borrowings — 607 — 607 607 Long-term debt — 27,457 — 27,457 25,721 Total $ — $ 364,125 $ — $ 364,125 $ 362,732 (a) Does not include the leasing portfolio. Summary of financial instruments Dec. 31, 2019 (in millions) Level 1 Level 2 Level 3 Total estimated Carrying Assets: Interest-bearing deposits with the Federal Reserve and other central banks $ — $ 95,042 $ — $ 95,042 $ 95,042 Interest-bearing deposits with banks — 14,832 — 14,832 14,811 Federal funds sold and securities purchased under resale agreements — 30,182 — 30,182 30,182 Securities held-to-maturity 4,630 30,175 — 34,805 34,483 Loans (a) — 54,194 — 54,194 53,718 Other financial assets 4,830 1,233 — 6,063 6,063 Total $ 9,460 $ 225,658 $ — $ 235,118 $ 234,299 Liabilities: Noninterest-bearing deposits $ — $ 57,630 $ — $ 57,630 $ 57,630 Interest-bearing deposits — 200,846 — 200,846 201,836 Federal funds purchased and securities sold under repurchase agreements — 11,401 — 11,401 11,401 Payables to customers and broker-dealers — 18,758 — 18,758 18,758 Commercial paper — 3,959 — 3,959 3,959 Borrowings — 917 — 917 917 Long-term debt — 27,858 — 27,858 27,114 Total $ — $ 321,369 $ — $ 321,369 $ 321,615 (a) Does not include the leasing portfolio. |
Fair value option (Tables)
Fair value option (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 Sept. 30, 2020 Dec. 31, 2019 (in millions) Assets of consolidated investment management funds: Trading assets $ 579 $ 229 Other assets 9 16 Total assets of consolidated investment management funds $ 588 $ 245 Liabilities of consolidated investment management funds: Other liabilities 4 1 Total liabilities of consolidated investment management funds $ 4 $ 1 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. Change in fair value of long-term debt (a) (in millions) 3Q20 2Q20 3Q19 YTD20 YTD19 Foreign exchange and other trading revenue $ (1) $ (2) $ (3) $ (13) $ (15) (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) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Gains (Losses) Related to Hedging | The following table presents the pre-tax gains (losses) related to our fair value and cash flow hedging activities recognized in the consolidated income statement. Income statement impact of fair value and cash flow hedges (in millions) Location of 3Q20 2Q20 3Q19 YTD20 YTD19 Interest rate fair value hedges of available-for-sale securities Derivative Interest revenue $ 150 $ 19 $ (250) $ (864) $ (1,119) Hedged item Interest revenue (140) (15) 243 856 1,099 Interest rate fair value hedges of long-term debt Derivative Interest expense (68) 47 146 693 631 Hedged item Interest expense 66 (49) (145) (691) (627) Foreign exchange fair value hedges of available-for-sale securities Derivative (a) Other revenue 1 (5) 2 (11) 3 Hedged item Other revenue 1 5 (2) 13 (2) Cash flow hedge of interest rate risk (Loss) reclassified from OCI into income Interest expense — — (1) — (1) Cash flow hedges of forecasted FX exposures (Loss) gain reclassified from OCI into income Staff expense — (3) 2 (2) 1 Gain (loss) recognized in the consolidated income statement due to fair value and cash flow hedging relationships $ 10 $ (1) $ (5) $ (6) $ (15) |
Impacts of Hedging Derivatives in Net Investment Hedging Relationships | The following table presents the impact of hedging derivatives used in net investment hedging relationships. Impact of derivative instruments used in net investment hedging relationships (in millions) Derivatives in net investment hedging relationships Gain or (loss) recognized in accumulated OCI on derivatives Location of gain or (loss) reclassified from accumulated OCI into income Gain or (loss) reclassified from accumulated OCI into income 3Q20 2Q20 3Q19 YTD20 YTD19 3Q20 2Q20 3Q19 YTD20 YTD19 FX contracts $ (289) $ (45) $ 252 $ 103 $ 322 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 Hedge accounting basis adjustment increase (decrease) (a) (in millions) Sept. 30, 2020 Dec. 31, 2019 Sept. 30, 2020 Dec. 31, 2019 Available-for-sale securities (b)(c) $ 14,629 $ 13,792 $ 1,650 $ 687 Long-term debt $ 14,889 $ 13,945 $ 870 $ 116 (a) Includes $187 million and $53 million of basis adjustment increases on discontinued hedges associated with available-for-sale securities at Sept. 30, 2020 and Dec. 31, 2019, respectively, and $136 million and $200 million of basis adjustment decreases on discontinued hedges associated with long-term debt at Sept. 30, 2020 and Dec. 31, 2019, 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 $140 million at Sept. 30, 2020 and $142 million at Dec. 31, 2019. (c) Carrying amount represents the amortized cost. |
Impact of Derivative Instruments on the Balance Sheet | The following table summarizes the notional amount and carrying values of our total derivative portfolio at Sept. 30, 2020 and Dec. 31, 2019. Impact of derivative instruments on the balance sheet Notional value Asset derivatives Liability derivatives Sept. 30, 2020 Dec. 31, 2019 Sept. 30, 2020 Dec. 31, 2019 Sept. 30, 2020 Dec. 31, 2019 (in millions) Derivatives designated as hedging instruments: (a)(b) Interest rate contracts $ 28,441 $ 28,365 $ — $ — $ 803 $ 350 Foreign exchange contracts 8,369 8,390 56 21 194 257 Total derivatives designated as hedging instruments $ 56 $ 21 $ 997 $ 607 Derivatives not designated as hedging instruments: (b)(c) Interest rate contracts $ 206,771 $ 306,790 $ 4,962 $ 3,690 $ 4,246 $ 3,250 Foreign exchange contracts 753,812 848,961 4,410 5,331 4,522 5,340 Equity contracts 2,241 3,189 15 19 8 5 Credit contracts 165 165 — — 3 4 Total derivatives not designated as hedging instruments $ 9,387 $ 9,040 $ 8,779 $ 8,599 Total derivatives fair value (d) $ 9,443 $ 9,061 $ 9,776 $ 9,206 Effect of master netting agreements (e) (5,238) (5,819) (6,183) (5,415) Fair value after effect of master netting agreements $ 4,205 $ 3,242 $ 3,593 $ 3,791 (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 results in 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 $675 million and $1,620 million, respectively, at Sept. 30, 2020, and $1,022 million and $618 million, respectively, at Dec. 31, 2019. |
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) 3Q20 2Q20 3Q19 YTD20 YTD19 Foreign exchange $ 151 $ 174 $ 129 $ 578 $ 439 Other trading (loss) revenue (14) (8) 21 44 47 Total foreign exchange and other trading revenue $ 137 $ 166 $ 150 $ 622 $ 486 |
Fair Value of Derivative Contracts Falling under Early Termination Provisions that were in 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. Sept. 30, 2020 Dec. 31, 2019 (in millions) Aggregate fair value of OTC derivatives in net liability positions (a) $ 5,958 $ 3,442 Collateral posted $ 6,384 $ 3,671 (a) Before consideration of cash collateral. 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) Sept. 30, 2020 Dec. 31, 2019 (in millions) If The Bank of New York Mellon’s rating changed to: (b) A3/A- $ 10 $ 56 Baa2/BBB $ 565 $ 608 Ba1/BB+ $ 3,113 $ 2,084 (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 ratings by Moody’s/S&P. |
Offsetting Assets | The following tables present derivative and financial instruments and their related offsets. 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 Sept. 30, 2020 Gross assets recognized Gross amounts offset in the balance sheet Net assets recognized in the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral received Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 3,183 $ 2,133 $ 1,050 $ 350 $ — $ 700 Foreign exchange contracts 4,043 3,102 941 33 — 908 Equity and other contracts 8 3 5 — — 5 Total derivatives subject to netting arrangements 7,234 5,238 1,996 383 — 1,613 Total derivatives not subject to netting arrangements 2,209 — 2,209 — — 2,209 Total derivatives 9,443 5,238 4,205 383 — 3,822 Reverse repurchase agreements 72,507 54,629 (b) 17,878 17,852 — 26 Securities borrowing 11,769 — 11,769 11,216 — 553 Total $ 93,719 $ 59,867 $ 33,852 $ 29,451 $ — $ 4,401 (a) Includes the effect of netting agreements and net cash collateral received. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions. (b) Offsetting of reverse repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation (“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, 2019 Gross assets recognized Gross amounts offset in the balance sheet Net assets recognized 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 $ 2,394 $ 1,792 $ 602 $ 207 $ — $ 395 Foreign exchange contracts 4,861 4,021 840 44 — 796 Equity and other contracts 9 6 3 — — 3 Total derivatives subject to netting arrangements 7,264 5,819 1,445 251 — 1,194 Total derivatives not subject to netting arrangements 1,797 — 1,797 — — 1,797 Total derivatives 9,061 5,819 3,242 251 — 2,991 Reverse repurchase agreements 112,355 93,794 (b) 18,561 18,554 — 7 Securities borrowing 11,621 — 11,621 11,278 — 343 Total $ 133,037 $ 99,613 $ 33,424 $ 30,083 $ — $ 3,341 (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 Sept. 30, 2020 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 $ 5,035 $ 2,551 $ 2,484 $ 2,477 $ — $ 7 Foreign exchange contracts 4,294 3,631 663 224 — 439 Equity and other contracts 8 1 7 — — 7 Total derivatives subject to netting arrangements 9,337 6,183 3,154 2,701 — 453 Total derivatives not subject to netting arrangements 439 — 439 — — 439 Total derivatives 9,776 6,183 3,593 2,701 — 892 Repurchase agreements 69,494 54,629 (b) 14,865 14,863 1 1 Securities lending 1,002 — 1,002 961 — 41 Total $ 80,272 $ 60,812 $ 19,460 $ 18,525 $ 1 $ 934 (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, 2019 Net liabilities recognized 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 $ 3,550 $ 1,986 $ 1,564 $ 1,539 $ — $ 25 Foreign exchange contracts 4,873 3,428 1,445 74 — 1,371 Equity and other contracts 5 1 4 2 — 2 Total derivatives subject to netting arrangements 8,428 5,415 3,013 1,615 — 1,398 Total derivatives not subject to netting arrangements 778 — 778 — — 778 Total derivatives 9,206 5,415 3,791 1,615 — 2,176 Repurchase agreements 104,451 93,794 (b) 10,657 10,657 — — Securities lending 718 — 718 694 — 24 Total $ 114,375 $ 99,209 $ 15,166 $ 12,966 $ — $ 2,200 (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 Sept. 30, 2020 Dec. 31, 2019 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 $ 60,350 $ — $ — $ 60,350 $ 94,788 $ 10 $ — $ 94,798 Agency RMBS 2,913 675 2 3,590 4,234 774 — 5,008 Corporate bonds 232 64 1,432 1,728 266 236 1,617 2,119 Sovereign debt/ sovereign guaranteed 128 — 1,151 1,279 — 22 — 22 State and political subdivisions 43 39 810 892 38 166 1,077 1,281 U.S. government agencies 610 — — 610 594 16 — 610 Other debt securities 47 44 186 277 2 — 2 4 Equity securities — 53 715 768 31 99 479 609 Total $ 64,323 $ 875 $ 4,296 $ 69,494 $ 99,953 $ 1,323 $ 3,175 $ 104,451 Securities lending: Agency RMBS $ 180 $ — $ — $ 180 $ 160 $ — $ — $ 160 U.S. government agencies 1 — — 1 19 — — 19 Other debt securities 49 — — 49 41 — — 41 Equity securities 772 — — 772 498 — — 498 Total $ 1,002 $ — $ — $ 1,002 $ 718 $ — $ — $ 718 Total secured borrowings $ 65,325 $ 875 $ 4,296 $ 70,496 $ 100,671 $ 1,323 $ 3,175 $ 105,169 |
Commitments and contingent li_2
Commitments and contingent liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 Sept. 30, 2020 Dec. 31, 2019 (in millions) Lending commitments $ 47,658 $ 49,119 Standby letters of credit (“SBLC”) (a) 2,175 2,298 Commercial letters of credit 87 74 Securities lending indemnifications (b)(c) 414,324 408,378 (a) Net of participations totaling $145 million at Sept. 30, 2020 and $146 million at Dec. 31, 2019. (b) Excludes the indemnification for securities for which BNY Mellon acts as an agent on behalf of CIBC Mellon clients, which totaled $58 billion at Sept. 30, 2020 and $57 billion at Dec. 31, 2019. |
Standby Letters of Credits by Investment Grade | The table below shows SBLCs by investment grade: Standby letters of credit Sept. 30, 2020 Dec. 31, 2019 Investment grade 87 % 90 % Non-investment grade 13 % 10 % |
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) Sept. 30, 2020 Loans Unfunded Total exposure Securities industry $ 2.8 $ 22.3 $ 25.1 Asset managers 1.2 6.5 7.7 Banks 6.1 1.1 7.2 Insurance 0.1 2.7 2.8 Government 0.1 0.2 0.3 Other 0.7 0.7 1.4 Total $ 11.0 $ 33.5 $ 44.5 Commercial portfolio exposure (in billions) Sept. 30, 2020 Loans Unfunded Total exposure Services and other $ 1.0 $ 3.5 $ 4.5 Manufacturing 0.7 3.8 4.5 Energy and utilities 0.2 4.0 4.2 Media and telecom — 0.9 0.9 Total $ 1.9 $ 12.2 $ 14.1 |
Supplemental information to t_2
Supplemental information to the Consolidated Statement of Cash Flows (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 Nine months ended Sept. 30, (in millions) 2020 2019 Transfers from loans to other assets for other real estate owned $ 1 $ 1 Change in assets of consolidated investment management funds 343 120 Change in liabilities of consolidated investment management funds 3 13 Change in nonredeemable noncontrolling interests of consolidated investment management funds 149 102 Securities purchased not settled 846 804 Premises and equipment/capitalized software funded by finance lease obligations — 14 Premises and equipment/operating lease obligations 126 1,440 (a) (a) Includes $1,244 million related to the adoption of ASU 2016-02, Leases |
Lines of business (Tables)
Lines of business (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 Sept. 30, 2020 Investment Investment and Wealth Other Consolidated (dollars in millions) Total fee and other revenue $ 2,246 $ 871 (a) $ 20 $ 3,137 (a) Net interest revenue (expense) 681 47 (25) 703 Total revenue (loss) 2,927 918 (a) (5) 3,840 (a) Provision for credit losses (10) 12 7 9 Noninterest expense 2,020 661 — 2,681 Income (loss) before income taxes $ 917 $ 245 (a) $ (12) $ 1,150 (a) Pre-tax operating margin (b) 31 % 27 % N/M 30 % Average assets $ 329,324 $ 30,160 $ 55,381 $ 414,865 (a) Total fee and other revenue includes net income from consolidated investment management funds of $20 million, representing $27 million of income and noncontrolling interests of $7 million. Total revenue and income before income taxes are net of noncontrolling interests of $7 million. (b) Income before income taxes divided by total revenue. N/M - Not meaningful. For the quarter ended June 30, 2020 Investment Investment and Wealth Other Consolidated (dollars in millions) Total fee and other revenue $ 2,339 $ 838 (a) $ 38 $ 3,215 (a) Net interest revenue (expense) 768 48 (36) 780 Total revenue 3,107 886 (a) 2 3,995 (a) Provision for credit losses 145 7 (9) 143 Noninterest expense 1,989 658 39 2,686 Income (loss) before income taxes $ 973 $ 221 (a) $ (28) $ 1,166 (a) Pre-tax operating margin (b) 31 % 25 % N/M 29 % Average assets $ 335,288 $ 30,327 $ 49,744 $ 415,359 (a) Total fee and other revenue includes net income from consolidated investment management funds of $39 million, representing $54 million of income and noncontrolling interests of $15 million. Total revenue and income before income taxes are net of noncontrolling interests of $15 million. (b) Income before income taxes divided by total revenue. N/M - Not meaningful. For the quarter ended Sept. 30, 2019 Investment Investment and Wealth Other Consolidated (dollars in millions) Total fee and other revenue (loss) $ 2,296 $ 838 (a) $ (6) $ 3,128 (a) Net interest revenue (expense) 761 49 (80) 730 Total revenue (loss) 3,057 887 (a) (86) 3,858 (a) Provision for credit losses (15) — (1) (16) Noninterest expense 1,973 592 25 2,590 Income (loss) before income taxes $ 1,099 $ 295 (a) $ (110) $ 1,284 (a) Pre-tax operating margin (b) 36 % 33 % N/M 33 % Average assets $ 269,926 $ 27,840 $ 52,913 $ 350,679 (a) Total fee and other revenue includes net income from consolidated investment management funds of $— million, representing $3 million of income and noncontrolling interests of $3 million. Total revenue and income before income taxes are net of noncontrolling interests of $3 million. (b) Income before income taxes divided by total revenue. N/M - Not meaningful. For the nine months ended Sept. 30, 2020 Investment Investment and Wealth Other Consolidated (dollars in millions) Total fee and other revenue $ 7,021 $ 2,555 (a) $ 88 $ 9,664 (a) Net interest revenue (expense) 2,255 147 (105) 2,297 Total revenue (loss) 9,276 2,702 (a) (17) 11,961 (a) Provision for credit losses 284 28 9 321 Noninterest expense 5,996 2,014 69 8,079 Income (loss) before income taxes $ 2,996 $ 660 (a) $ (95) $ 3,561 (a) Pre-tax operating margin (b) 32 % 24 % N/M 30 % Average assets $ 322,924 $ 30,343 $ 51,936 $ 405,203 (a) Total fee and other revenue includes net income from consolidated investment management funds of $39 million, representing $43 million of income and noncontrolling interests of $4 million. Total revenue and income before income taxes are net of noncontrolling interests of $4 million. (b) Income before income taxes divided by total revenue. N/M - Not meaningful. For the nine months ended Sept. 30, 2019 Investment Investment and Wealth Other Consolidated (dollars in millions) Total fee and other revenue $ 6,690 $ 2,561 (a) $ 43 $ 9,294 (a) Net interest revenue (expense) 2,348 175 (150) 2,373 Total revenue (loss) 9,038 2,736 (a) (107) 11,667 (a) Provision for credit losses (11) (1) (5) (17) Noninterest expense 5,917 1,916 103 7,936 Income (loss) before income taxes $ 3,132 $ 821 (a) $ (205) $ 3,748 (a) Pre-tax operating margin (b) 35 % 30 % N/M 32 % Average assets $ 263,631 $ 29,815 $ 49,683 $ 343,129 (a) Total fee and other revenue includes net income from consolidated investment management funds of $22 million, representing $39 million of income and noncontrolling interests of $17 million. Total revenue and income before income taxes are net of noncontrolling interests of $17 million. (b) Income before income taxes divided by total revenue. N/M - Not meaningful. |
Accounting changes and new ac_4
Accounting changes and new accounting guidance - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Jun. 30, 2019 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201802Member | ||||||||||||
Adjustment for the cumulative effect of applying the ASU | $ 45,168,000,000 | [1],[2] | $ 41,323,000,000 | [3],[4] | $ 41,585,000,000 | [1] | $ 40,739,000,000 | [3] | $ 43,809,000,000 | [2],[5] | $ 41,239,000,000 | [5] | $ 41,699,000,000 | [4] | |
Minimum loan amount required to measure impairment allowance | 1,000,000 | ||||||||||||||
Retained earnings | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Adjustment for the cumulative effect of applying the ASU | $ 33,821,000,000 | $ 30,789,000,000 | 31,894,000,000 | 28,652,000,000 | $ 33,224,000,000 | $ 32,601,000,000 | $ 30,081,000,000 | ||||||||
Commercial Loan | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Threshold period past due for nonaccrual status | 90 days | ||||||||||||||
First Lien Residential Mortgage | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Threshold period past due subject to impairment test | 90 days | ||||||||||||||
Second Lien Residential Mortgage | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Threshold period past due subject to further impairment testing | 90 days | ||||||||||||||
Cumulative Effect, Period Of Adoption, Adjustment | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Adjustment for the cumulative effect of applying the ASU | 40,000,000 | 0 | |||||||||||||
Cumulative Effect, Period Of Adoption, Adjustment | Retained earnings | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Adjustment for the cumulative effect of applying the ASU | $ 45,000,000 | $ 90,000,000 | $ 45,000,000 | ||||||||||||
[1] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,941 million at Dec. 31, 2019 and $40,385 million at Sept. 30, 2020. | ||||||||||||||
[2] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $39,165 million at June 30, 2020 and $40,385 million at Sept. 30, 2020. | ||||||||||||||
[3] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,096 million at Dec. 31, 2018 and $37,578 million at Sept. 30, 2019. | ||||||||||||||
[4] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,991 million at June 30, 2019 and $37,578 million at Sept. 30, 2019. | ||||||||||||||
[5] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $37,603 million at March 31, 2020 and $39,165 million at June 30, 2020. |
Accounting changes and new ac_5
Accounting changes and new accounting guidance - Allowance for Credit Losses (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses, loans | $ 460 | $ 454 | $ 216 | $ 224 | $ 241 | $ 252 | |
Securities | 12 | ||||||
Allowance for credit losses | $ 161 | ||||||
Reclassification of credit-related reserves on accounts receivable | 4 | ||||||
Cumulative Effect, Period Of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses, loans | (69) | $ (69) | |||||
Securities | 7 | ||||||
Other | 3 | ||||||
Allowance for credit losses | (59) | ||||||
Loans | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses, loans | 325 | 302 | 48 | 127 | |||
Lending-related commitments | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses, loans | $ 135 | $ 152 | $ 21 | $ 97 |
Acquisitions and dispositions -
Acquisitions and dispositions - Narrative (Details) - USD ($) | Nov. 08, 2019 | Sep. 30, 2020 | Sep. 30, 2020 |
Business Acquisition [Line Items] | |||
Contingent payments | $ 0 | $ 3,000,000 | |
Potential obligation to pay additional consideration, lower range | 5,000,000 | 5,000,000 | |
Potential obligation to pay additional consideration, upper range | $ 10,000,000 | $ 10,000,000 | |
Contingent consideration payment period | 2 years | ||
Promontory Interfinancial Network | |||
Business Acquisition [Line Items] | |||
Gain on disposal | $ 622,000,000 |
Securities - Amortized Cost, Gr
Securities - Amortized Cost, Gross Unrealized Gains and Losses and Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Available-for-sale: | ||
Amortized cost | $ 105,684 | $ 87,435 |
Gross unrealized, Gain | 3,694 | 1,353 |
Gross unrealized, Loss | 135 | 238 |
Available-for-sale | 109,243 | 88,550 |
Held-to-maturity: | ||
Amortized cost | 46,096 | 34,483 |
Gross unrealized, Gains | 1,377 | 377 |
Gross unrealized, Losses | 15 | 55 |
Securities held-to-maturity | 47,458 | 34,805 |
Amortized cost, Total | 151,780 | 121,918 |
Gross unrealized, Gain, Total | 5,071 | 1,730 |
Gross unrealized, Losses, Total | 150 | 293 |
Fair value, Total | 156,701 | 123,355 |
Debt securities, available-for-sale, allowance for credit loss | 12 | |
AOCI, transfers from AFS to HTM Securities, gross unrealized gains | 25 | 32 |
AOCI, transfers from AFS to HTM Securities, gross unrealized losses | 49 | 65 |
Agency RMBS | ||
Available-for-sale: | ||
Amortized cost | 24,262 | 27,022 |
Gross unrealized, Gain | 526 | 164 |
Gross unrealized, Loss | 55 | 143 |
Available-for-sale | 24,733 | 27,043 |
Held-to-maturity: | ||
Amortized cost | 37,086 | 27,357 |
Gross unrealized, Gains | 1,117 | 292 |
Gross unrealized, Losses | 10 | 46 |
Securities held-to-maturity | 38,193 | 27,603 |
U.S. Treasury | ||
Available-for-sale: | ||
Amortized cost | 23,166 | 14,979 |
Gross unrealized, Gain | 1,568 | 472 |
Gross unrealized, Loss | 1 | 20 |
Available-for-sale | 24,733 | 15,431 |
Held-to-maturity: | ||
Amortized cost | 3,288 | 3,818 |
Gross unrealized, Gains | 103 | 28 |
Gross unrealized, Losses | 0 | 3 |
Securities held-to-maturity | 3,391 | 3,843 |
Sovereign debt/sovereign guaranteed | ||
Available-for-sale: | ||
Amortized cost | 13,925 | 12,548 |
Gross unrealized, Gain | 169 | 109 |
Gross unrealized, Loss | 1 | 11 |
Available-for-sale | 14,093 | 12,646 |
Held-to-maturity: | ||
Amortized cost | 983 | 756 |
Gross unrealized, Gains | 41 | 31 |
Gross unrealized, Losses | 0 | 0 |
Securities held-to-maturity | 1,024 | 787 |
Agency commercial mortgage-backed securities (“MBS”) | ||
Available-for-sale: | ||
Amortized cost | 9,299 | 9,231 |
Gross unrealized, Gain | 646 | 203 |
Gross unrealized, Loss | 3 | 17 |
Available-for-sale | 9,942 | 9,417 |
Held-to-maturity: | ||
Amortized cost | 2,041 | 1,326 |
Gross unrealized, Gains | 107 | 21 |
Gross unrealized, Losses | 0 | 3 |
Securities held-to-maturity | 2,148 | 1,344 |
Foreign covered bonds | ||
Available-for-sale: | ||
Amortized cost | 5,777 | 4,189 |
Gross unrealized, Gain | 64 | 15 |
Gross unrealized, Loss | 0 | 7 |
Available-for-sale | 5,841 | 4,197 |
Held-to-maturity: | ||
Amortized cost | 79 | |
Gross unrealized, Gains | 0 | |
Gross unrealized, Losses | 0 | |
Securities held-to-maturity | 79 | |
Supranational | ||
Available-for-sale: | ||
Amortized cost | 7,069 | 3,697 |
Gross unrealized, Gain | 68 | 18 |
Gross unrealized, Loss | 1 | 6 |
Available-for-sale | 7,136 | 3,709 |
Held-to-maturity: | ||
Amortized cost | 52 | 27 |
Gross unrealized, Gains | 1 | 0 |
Gross unrealized, Losses | 0 | 0 |
Securities held-to-maturity | 53 | 27 |
Collateralized loan obligations (“CLOs”) | ||
Available-for-sale: | ||
Amortized cost | 4,696 | 4,078 |
Gross unrealized, Gain | 5 | 1 |
Gross unrealized, Loss | 44 | 16 |
Available-for-sale | 4,657 | 4,063 |
Foreign government agencies | ||
Available-for-sale: | ||
Amortized cost | 3,924 | 2,638 |
Gross unrealized, Gain | 46 | 7 |
Gross unrealized, Loss | 0 | 2 |
Available-for-sale | 3,970 | 2,643 |
U.S. government agencies | ||
Available-for-sale: | ||
Amortized cost | 3,300 | 1,890 |
Gross unrealized, Gain | 180 | 61 |
Gross unrealized, Loss | 2 | 2 |
Available-for-sale | 3,478 | 1,949 |
Held-to-maturity: | ||
Amortized cost | 2,266 | 1,023 |
Gross unrealized, Gains | 5 | 1 |
Gross unrealized, Losses | 4 | 2 |
Securities held-to-maturity | 2,267 | 1,022 |
Other ABS | ||
Available-for-sale: | ||
Amortized cost | 2,903 | 2,141 |
Gross unrealized, Gain | 31 | 7 |
Gross unrealized, Loss | 4 | 5 |
Available-for-sale | 2,930 | 2,143 |
Non-agency commercial MBS | ||
Available-for-sale: | ||
Amortized cost | 2,565 | 2,134 |
Gross unrealized, Gain | 156 | 46 |
Gross unrealized, Loss | 10 | 2 |
Available-for-sale | 2,711 | 2,178 |
Commercial paper/certificates of deposit (“CDs”) | ||
Available-for-sale: | ||
Amortized cost | 355 | |
Gross unrealized, Gain | 2 | |
Gross unrealized, Loss | 0 | |
Available-for-sale | 357 | |
Held-to-maturity: | ||
Amortized cost | 295 | |
Gross unrealized, Gains | 0 | |
Gross unrealized, Losses | 0 | |
Securities held-to-maturity | 295 | |
Non-agency RMBS | ||
Available-for-sale: | ||
Amortized cost | 1,793 | 1,038 |
Gross unrealized, Gain | 157 | 202 |
Gross unrealized, Loss | 9 | 7 |
Available-for-sale | 1,941 | 1,233 |
Held-to-maturity: | ||
Amortized cost | 70 | 80 |
Gross unrealized, Gains | 3 | 4 |
Gross unrealized, Losses | 1 | 1 |
Securities held-to-maturity | 72 | 83 |
Non-agency RMBS | Grantor Trust | ||
Available-for-sale: | ||
Available-for-sale | 512 | 640 |
State and political subdivisions | ||
Available-for-sale: | ||
Amortized cost | 1,661 | 1,017 |
Gross unrealized, Gain | 33 | 27 |
Gross unrealized, Loss | 4 | 0 |
Available-for-sale | 1,690 | 1,044 |
Held-to-maturity: | ||
Amortized cost | 15 | 17 |
Gross unrealized, Gains | 0 | 0 |
Gross unrealized, Losses | 0 | 0 |
Securities held-to-maturity | 15 | 17 |
Corporate bonds | ||
Available-for-sale: | ||
Amortized cost | 988 | 832 |
Gross unrealized, Gain | 43 | 21 |
Gross unrealized, Loss | 1 | 0 |
Available-for-sale | 1,030 | 853 |
Other debt securities | ||
Available-for-sale: | ||
Amortized cost | 1 | 1 |
Gross unrealized, Gain | 0 | 0 |
Gross unrealized, Loss | 0 | 0 |
Available-for-sale | $ 1 | $ 1 |
Securities - Net Securities Gai
Securities - Net Securities Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Securities [Abstract] | |||||
Realized gross gains | $ 10 | $ 16 | $ 1 | $ 38 | $ 18 |
Realized gross losses | (1) | (7) | (1) | (11) | (10) |
Recognized gross impairments | 0 | 0 | (1) | 0 | (1) |
Total net securities gains (losses) | $ 9 | $ 9 | $ (1) | $ 27 | $ 7 |
Securities - Pre-Tax Net Securi
Securities - Pre-Tax Net Securities Gains (Losses) by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Total net securities gains (losses) | $ 9 | $ 9 | $ (1) | $ 27 | $ 7 |
Foreign government agencies | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Total net securities gains (losses) | 5 | 2 | 0 | 7 | 0 |
U.S. Treasury | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Total net securities gains (losses) | 1 | 1 | 0 | 7 | 4 |
Supranational | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Total net securities gains (losses) | 0 | 6 | 0 | 6 | 0 |
Sovereign debt/sovereign guaranteed | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Total net securities gains (losses) | 1 | 2 | 0 | 3 | 3 |
State and political subdivisions | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Total net securities gains (losses) | 0 | 0 | 0 | 0 | 2 |
Other | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Total net securities gains (losses) | $ 2 | $ (2) | $ (1) | $ 4 | $ (2) |
Securities - Narrative (Details
Securities - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201802Member | |||
Debt securities, available-for-sale, allowance for credit loss | $ 12 | |||||
AOCI, transfers from AFS to HTM Securities, gross unrealized losses | $ 49 | $ 65 | ||||
Cumulative Effect, Period Of Adoption, Adjustment | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt securities, available-for-sale, allowance for credit loss | $ 7 |
Securities - Fair Value of Inve
Securities - Fair Value of Investments with Continuous Unrealized Loss Position (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Available-for-sale: | ||
Less than 12 months, Fair value | $ 11,037,000,000 | $ 23,012,000,000 |
Less than 12 months, Unrealized losses | 56,000,000 | 92,000,000 |
12 months or more, Fair value | 3,755,000,000 | 10,774,000,000 |
12 months or more, Unrealized losses | 79,000,000 | 146,000,000 |
Total, Fair value | 14,792,000,000 | 33,786,000,000 |
Total, Unrealized losses | 135,000,000 | 238,000,000 |
AOCI, transfers from AFS to HTM Securities, gross unrealized losses, greater than 12 months | 49,000,000 | 65,000,000 |
AOCI, transfers from AFS to HTM Securities, gross unrealized losses, less than 12 months | 0 | 0 |
Grantor Trust | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 370,000,000 | |
Agency RMBS | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 1,126,000,000 | 8,373,000,000 |
Less than 12 months, Unrealized losses | 3,000,000 | 33,000,000 |
12 months or more, Fair value | 2,102,000,000 | 5,912,000,000 |
12 months or more, Unrealized losses | 52,000,000 | 110,000,000 |
Total, Fair value | 3,228,000,000 | 14,285,000,000 |
Total, Unrealized losses | 55,000,000 | 143,000,000 |
U.S. Treasury | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 1,041,000,000 | 1,976,000,000 |
Less than 12 months, Unrealized losses | 1,000,000 | 16,000,000 |
12 months or more, Fair value | 0 | 766,000,000 |
12 months or more, Unrealized losses | 0 | 4,000,000 |
Total, Fair value | 1,041,000,000 | 2,742,000,000 |
Total, Unrealized losses | 1,000,000 | 20,000,000 |
Sovereign debt/sovereign guaranteed | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 1,069,000,000 | 4,045,000,000 |
Less than 12 months, Unrealized losses | 1,000,000 | 10,000,000 |
12 months or more, Fair value | 119,000,000 | 225,000,000 |
12 months or more, Unrealized losses | 0 | 1,000,000 |
Total, Fair value | 1,188,000,000 | 4,270,000,000 |
Total, Unrealized losses | 1,000,000 | 11,000,000 |
Agency commercial mortgage-backed securities (“MBS”) | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 566,000,000 | 1,960,000,000 |
Less than 12 months, Unrealized losses | 1,000,000 | 12,000,000 |
12 months or more, Fair value | 306,000,000 | 775,000,000 |
12 months or more, Unrealized losses | 2,000,000 | 5,000,000 |
Total, Fair value | 872,000,000 | 2,735,000,000 |
Total, Unrealized losses | 3,000,000 | 17,000,000 |
Foreign covered bonds | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 1,009,000,000 | |
Less than 12 months, Unrealized losses | 4,000,000 | |
12 months or more, Fair value | 690,000,000 | |
12 months or more, Unrealized losses | 3,000,000 | |
Total, Fair value | 1,699,000,000 | |
Total, Unrealized losses | 7,000,000 | |
Supranational | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 1,583,000,000 | 1,336,000,000 |
Less than 12 months, Unrealized losses | 1,000,000 | 6,000,000 |
12 months or more, Fair value | 127,000,000 | 360,000,000 |
12 months or more, Unrealized losses | 0 | 0 |
Total, Fair value | 1,710,000,000 | 1,696,000,000 |
Total, Unrealized losses | 1,000,000 | 6,000,000 |
Collateralized loan obligations (“CLOs”) | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 3,449,000,000 | 1,066,000,000 |
Less than 12 months, Unrealized losses | 31,000,000 | 2,000,000 |
12 months or more, Fair value | 579,000,000 | 1,499,000,000 |
12 months or more, Unrealized losses | 13,000,000 | 14,000,000 |
Total, Fair value | 4,028,000,000 | 2,565,000,000 |
Total, Unrealized losses | 44,000,000 | 16,000,000 |
Foreign government agencies | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 1,706,000,000 | |
Less than 12 months, Unrealized losses | 2,000,000 | |
12 months or more, Fair value | 47,000,000 | |
12 months or more, Unrealized losses | 0 | |
Total, Fair value | 1,753,000,000 | |
Total, Unrealized losses | 2,000,000 | |
U.S. government agencies | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 99,000,000 | 377,000,000 |
Less than 12 months, Unrealized losses | 2,000,000 | 2,000,000 |
12 months or more, Fair value | 0 | 0 |
12 months or more, Unrealized losses | 0 | 0 |
Total, Fair value | 99,000,000 | 377,000,000 |
Total, Unrealized losses | 2,000,000 | 2,000,000 |
Other ABS | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 675,000,000 | 456,000,000 |
Less than 12 months, Unrealized losses | 2,000,000 | 3,000,000 |
12 months or more, Fair value | 229,000,000 | 305,000,000 |
12 months or more, Unrealized losses | 2,000,000 | 2,000,000 |
Total, Fair value | 904,000,000 | 761,000,000 |
Total, Unrealized losses | 4,000,000 | 5,000,000 |
Non-agency commercial MBS | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 358,000,000 | 525,000,000 |
Less than 12 months, Unrealized losses | 6,000,000 | 2,000,000 |
12 months or more, Fair value | 194,000,000 | 45,000,000 |
12 months or more, Unrealized losses | 4,000,000 | 0 |
Total, Fair value | 552,000,000 | 570,000,000 |
Total, Unrealized losses | 10,000,000 | 2,000,000 |
Non-agency RMBS | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 636,000,000 | 101,000,000 |
Less than 12 months, Unrealized losses | 3,000,000 | 0 |
12 months or more, Fair value | 97,000,000 | 113,000,000 |
12 months or more, Unrealized losses | 6,000,000 | 7,000,000 |
Total, Fair value | 733,000,000 | 214,000,000 |
Total, Unrealized losses | 9,000,000 | 7,000,000 |
Non-agency RMBS | Grantor Trust | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 22,000,000 | 2,000,000 |
Less than 12 months, Unrealized losses | 1,000,000 | 1,000,000 |
12 months or more, Fair value | 1,000,000 | 2,000,000 |
12 months or more, Unrealized losses | 1,000,000 | 1,000,000 |
State and political subdivisions | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 262,000,000 | 0 |
Less than 12 months, Unrealized losses | 4,000,000 | 0 |
12 months or more, Fair value | 2,000,000 | 16,000,000 |
12 months or more, Unrealized losses | 0 | 0 |
Total, Fair value | 264,000,000 | 16,000,000 |
Total, Unrealized losses | 4,000,000 | 0 |
Corporate bonds | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 82,000,000 | |
Less than 12 months, Unrealized losses | 0 | |
12 months or more, Fair value | 21,000,000 | |
12 months or more, Unrealized losses | 0 | |
Total, Fair value | 103,000,000 | |
Total, Unrealized losses | $ 0 | |
Corporate Bond Securities | ||
Available-for-sale: | ||
Less than 12 months, Fair value | 173,000,000 | |
Less than 12 months, Unrealized losses | 1,000,000 | |
12 months or more, Fair value | 0 | |
12 months or more, Unrealized losses | 0 | |
Total, Fair value | 173,000,000 | |
Total, Unrealized losses | $ 1,000,000 |
Securities - Debt Securities, H
Securities - Debt Securities, Held-to-maturity, Credit Quality Indicator (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Amortized cost | $ 46,096 | $ 34,483 |
Unrealized gain (loss) | $ 1,362 | |
Ratings (percent) | 0.00% | |
Agency RMBS | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Amortized cost | $ 37,086 | 27,357 |
Unrealized gain (loss) | $ 1,107 | |
Ratings (percent) | 0.00% | |
U.S. Treasury | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Amortized cost | $ 3,288 | 3,818 |
Unrealized gain (loss) | $ 103 | |
Ratings (percent) | 0.00% | |
U.S. government agencies | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Amortized cost | $ 2,266 | 1,023 |
Unrealized gain (loss) | $ 1 | |
Ratings (percent) | 0.00% | |
Agency commercial mortgage-backed securities (“MBS”) | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Amortized cost | $ 2,041 | 1,326 |
Unrealized gain (loss) | $ 107 | |
Ratings (percent) | 0.00% | |
Commercial paper/certificates of deposit (“CDs”) | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Amortized cost | $ 295 | |
Unrealized gain (loss) | $ 0 | |
Ratings (percent) | 0.00% | |
Sovereign debt/sovereign guaranteed | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Amortized cost | $ 983 | 756 |
Unrealized gain (loss) | $ 41 | |
Ratings (percent) | 0.00% | |
Non-agency RMBS | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Amortized cost | $ 70 | 80 |
Unrealized gain (loss) | $ 2 | |
Ratings (percent) | 1.00% | |
Supranational | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Amortized cost | $ 52 | 27 |
Unrealized gain (loss) | $ 1 | |
Ratings (percent) | 0.00% | |
State and political subdivisions | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Amortized cost | $ 15 | $ 17 |
Unrealized gain (loss) | $ 0 | |
Ratings (percent) | 86.00% | |
AAA/ AA- | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 99.00% | |
AAA/ AA- | Agency RMBS | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 100.00% | |
AAA/ AA- | U.S. Treasury | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 100.00% | |
AAA/ AA- | U.S. government agencies | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 100.00% | |
AAA/ AA- | Agency commercial mortgage-backed securities (“MBS”) | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 100.00% | |
AAA/ AA- | Commercial paper/certificates of deposit (“CDs”) | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
AAA/ AA- | Sovereign debt/sovereign guaranteed | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 100.00% | |
AAA/ AA- | Non-agency RMBS | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 39.00% | |
AAA/ AA- | Supranational | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 100.00% | |
AAA/ AA- | State and political subdivisions | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 6.00% | |
A/ A- | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
A/ A- | Agency RMBS | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
A/ A- | U.S. Treasury | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
A/ A- | U.S. government agencies | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
A/ A- | Agency commercial mortgage-backed securities (“MBS”) | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
A/ A- | Commercial paper/certificates of deposit (“CDs”) | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
A/ A- | Sovereign debt/sovereign guaranteed | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
A/ A- | Non-agency RMBS | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 46.00% | |
A/ A- | Supranational | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
A/ A- | State and political subdivisions | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 2.00% | |
BBB/ BBB- | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
BBB/ BBB- | Agency RMBS | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
BBB/ BBB- | U.S. Treasury | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
BBB/ BBB- | U.S. government agencies | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
BBB/ BBB- | Agency commercial mortgage-backed securities (“MBS”) | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
BBB/ BBB- | Commercial paper/certificates of deposit (“CDs”) | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
BBB/ BBB- | Sovereign debt/sovereign guaranteed | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
BBB/ BBB- | Non-agency RMBS | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 2.00% | |
BBB/ BBB- | Supranational | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
BBB/ BBB- | State and political subdivisions | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 6.00% | |
BB and lower | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
BB and lower | Agency RMBS | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
BB and lower | U.S. Treasury | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
BB and lower | U.S. government agencies | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
BB and lower | Agency commercial mortgage-backed securities (“MBS”) | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
BB and lower | Commercial paper/certificates of deposit (“CDs”) | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
BB and lower | Sovereign debt/sovereign guaranteed | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
BB and lower | Non-agency RMBS | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 12.00% | |
BB and lower | Supranational | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
BB and lower | State and political subdivisions | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
A1+/A2/SP-1+ | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 1.00% | |
A1+/A2/SP-1+ | Agency RMBS | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
A1+/A2/SP-1+ | U.S. Treasury | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
A1+/A2/SP-1+ | U.S. government agencies | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
A1+/A2/SP-1+ | Agency commercial mortgage-backed securities (“MBS”) | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
A1+/A2/SP-1+ | Commercial paper/certificates of deposit (“CDs”) | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 100.00% | |
A1+/A2/SP-1+ | Sovereign debt/sovereign guaranteed | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
A1+/A2/SP-1+ | Non-agency RMBS | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
A1+/A2/SP-1+ | Supranational | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% | |
A1+/A2/SP-1+ | State and political subdivisions | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Ratings (percent) | 0.00% |
Securities - Maturity Distribut
Securities - Maturity Distribution and Yield of Investment Securities Portfolio (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Securities available-for-sale, Amount: | ||
One year or less | $ 16,165 | |
Over 1 through 5 years | 30,751 | |
Over 5 through 10 years | 11,448 | |
Over 10 years | 3,965 | |
Total | 109,243 | $ 88,550 |
Securities held-to-maturity, Amount: | ||
One year or less | 1,092 | |
Over 1 through 5 years | 4,704 | |
Over 5 through 10 years | 596 | |
Over 10 years | 507 | |
Amortized cost | 46,096 | 34,483 |
Mortgage-backed securities | ||
Securities available-for-sale, Amount: | ||
Without single maturity date | 39,327 | |
Securities held-to-maturity, Amount: | ||
Mortgage-backed securities | 39,197 | |
Asset-backed securities | ||
Securities available-for-sale, Amount: | ||
Without single maturity date | 7,587 | |
U.S. Treasury | ||
Securities available-for-sale, Amount: | ||
One year or less | 4,405 | |
Over 1 through 5 years | 10,546 | |
Over 5 through 10 years | 6,517 | |
Over 10 years | 3,265 | |
Total | $ 24,733 | 15,431 |
Securities available-for-sale (Yield): | ||
One year or less | 1.11% | |
Over 1 through 5 years | 1.28% | |
Over 5 through 10 years | 1.57% | |
Over 10 years | 3.11% | |
Total | 1.57% | |
Securities held-to-maturity, Amount: | ||
One year or less | $ 785 | |
Over 1 through 5 years | 2,503 | |
Over 5 through 10 years | 0 | |
Over 10 years | 0 | |
Amortized cost | $ 3,288 | 3,818 |
Securities held-to-maturity (Yield): | ||
One year or less | 1.43% | |
Over 1 through 5 years | 1.90% | |
Over 5 through 10 years | 0.00% | |
Over 10 years | 0.00% | |
Total | 1.79% | |
U.S. government agencies | ||
Securities available-for-sale, Amount: | ||
One year or less | $ 25 | |
Over 1 through 5 years | 1,866 | |
Over 5 through 10 years | 1,468 | |
Over 10 years | 119 | |
Total | $ 3,478 | 1,949 |
Securities available-for-sale (Yield): | ||
One year or less | 2.55% | |
Over 1 through 5 years | 0.85% | |
Over 5 through 10 years | 2.51% | |
Over 10 years | 2.06% | |
Total | 1.60% | |
Securities held-to-maturity, Amount: | ||
One year or less | $ 0 | |
Over 1 through 5 years | 1,253 | |
Over 5 through 10 years | 564 | |
Over 10 years | 449 | |
Amortized cost | $ 2,266 | 1,023 |
Securities held-to-maturity (Yield): | ||
One year or less | 0.00% | |
Over 1 through 5 years | 0.82% | |
Over 5 through 10 years | 1.13% | |
Over 10 years | 2.28% | |
Total | 1.19% | |
State and political subdivisions | ||
Securities available-for-sale, Amount: | ||
One year or less | $ 549 | |
Over 1 through 5 years | 570 | |
Over 5 through 10 years | 223 | |
Over 10 years | 348 | |
Total | $ 1,690 | 1,044 |
Securities available-for-sale (Yield): | ||
One year or less | 1.49% | |
Over 1 through 5 years | 3.16% | |
Over 5 through 10 years | 1.88% | |
Over 10 years | 2.22% | |
Total | 2.26% | |
Securities held-to-maturity, Amount: | ||
One year or less | $ 0 | |
Over 1 through 5 years | 2 | |
Over 5 through 10 years | 0 | |
Over 10 years | 13 | |
Amortized cost | $ 15 | $ 17 |
Securities held-to-maturity (Yield): | ||
One year or less | 0.00% | |
Over 1 through 5 years | 5.66% | |
Over 5 through 10 years | 0.00% | |
Over 10 years | 4.76% | |
Total | 4.91% | |
Other bonds, notes and debentures | ||
Securities available-for-sale, Amount: | ||
One year or less | $ 11,186 | |
Over 1 through 5 years | 17,769 | |
Over 5 through 10 years | 3,240 | |
Over 10 years | 233 | |
Total | $ 32,428 | |
Securities available-for-sale (Yield): | ||
One year or less | 0.44% | |
Over 1 through 5 years | 0.61% | |
Over 5 through 10 years | 0.56% | |
Over 10 years | 0.62% | |
Total | 0.55% | |
Securities held-to-maturity, Amount: | ||
One year or less | $ 307 | |
Over 1 through 5 years | 946 | |
Over 5 through 10 years | 32 | |
Over 10 years | 45 | |
Amortized cost | $ 1,330 | |
Securities held-to-maturity (Yield): | ||
One year or less | 1.99% | |
Over 1 through 5 years | 0.67% | |
Over 5 through 10 years | 0.92% | |
Over 10 years | 0.35% | |
Total | 0.96% | |
Mortgage/ asset-backed | ||
Securities available-for-sale, Amount: | ||
Total | $ 46,914 | |
Securities available-for-sale (Yield): | ||
Total | 2.10% | |
Securities held-to-maturity, Amount: | ||
Amortized cost | $ 39,197 | |
Securities held-to-maturity (Yield): | ||
Total | 2.57% | |
Mortgage/ asset-backed | Mortgage-backed securities | ||
Securities available-for-sale, Amount: | ||
Without single maturity date | $ 39,327 | |
Securities available-for-sale (Yield): | ||
Without single maturity date | 2.18% | |
Securities held-to-maturity, Amount: | ||
Mortgage-backed securities | $ 39,197 | |
Securities held-to-maturity (Yield): | ||
Without single maturity date | 2.57% | |
Mortgage/ asset-backed | Asset-backed securities | ||
Securities available-for-sale, Amount: | ||
Without single maturity date | $ 7,587 | |
Securities available-for-sale (Yield): | ||
Without single maturity date | 1.72% |
Securities - Pledged assets (De
Securities - Pledged assets (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Securities [Abstract] | ||
Pledged assets | $ 141,000 | $ 118,000 |
Pledged collateral for potential borrowings at the Federal Reserve Discount Window | 108,000 | 80,000 |
Pledged asset, other not separately reported, potential borrowings at FHLB | 5,000 | 6,000 |
Pledged securities | 123,000 | 98,000 |
Pledged loans | 11,000 | 13,000 |
Pledged trading assets | 6,000 | 7,000 |
Pledged interest-bearing deposits | 1,000 | 1,000 |
Financial instruments owned and pledged as collateral, amount eligible to be pledged by counterparty | 23,000 | 29,000 |
Pledged collateral for potential borrowings at the Federal Reserve | 295 | |
Pledged assets permitted to be sold or repledged | 112,000 | 153,000 |
Market value of securities received as collateral that have been sold or repledged | 80,000 | 107,000 |
Cash segregated under federal or other regulations | 3,000 | 2,000 |
Securities segregated under federal or other regulations | $ 4,000 | $ 1,000 |
Loans and asset quality - Loan
Loans and asset quality - Loan Distribution and Industry Concentrations (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 55,491 | $ 54,953 |
Unearned income on lease financings | 285 | 313 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,900 | |
Financial institutions | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 11,000 | |
Other residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 423 | 494 |
Overdrafts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,700 | |
Margin loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 13,500 | 13,400 |
Domestic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 43,186 | 42,548 |
Domestic | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,839 | 1,442 |
Domestic | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,987 | 5,575 |
Domestic | Financial institutions | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,915 | 4,852 |
Domestic | Lease financings | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 482 | 537 |
Domestic | Wealth management loans and mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 15,805 | 16,050 |
Domestic | Other residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 423 | 494 |
Domestic | Overdrafts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 899 | 524 |
Domestic | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,616 | 1,167 |
Domestic | Margin loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 11,220 | 11,907 |
Foreign | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 12,305 | 12,405 |
Foreign | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 102 | 347 |
Foreign | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5 | 7 |
Foreign | Financial institutions | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 6,097 | 7,626 |
Foreign | Lease financings | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 596 | 576 |
Foreign | Wealth management loans and mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 121 | 140 |
Foreign | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,106 | 2,230 |
Foreign | Margin loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 2,278 | $ 1,479 |
Loans and asset quality - Loans
Loans and asset quality - Loans Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020segmentclass_of_receivable | |
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 | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201802Member | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | $ 454 | $ 241 | $ 216 | $ 252 | $ 252 | ||
Charge-offs | 0 | $ 0 | (1) | 0 | (13) | ||
Recoveries | 1 | 3 | 0 | 4 | 2 | ||
Net (charge-offs) recoveries | 1 | 3 | (1) | 4 | (11) | ||
Provision | 5 | 163 | (16) | 309 | (17) | ||
Ending balance | 460 | 454 | 224 | 460 | 224 | 216 | $ 252 |
Individually evaluated for impairment: | |||||||
Loan balance | 17 | 18 | 16 | 17 | 16 | ||
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | ||
Collectively evaluated for impairment: | |||||||
Loan balance | 54,865 | 54,865 | |||||
Allowance for loan losses | 127 | 127 | |||||
Collateral dependent loans | 17 | 18 | 17 | ||||
Fair value of collateral | 25 | 26 | 25 | ||||
Loan balance | 54,865 | 54,865 | |||||
Loans | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 302 | ||||||
Ending balance | 325 | 302 | 127 | 325 | 127 | ||
Lending-related commitments | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 152 | ||||||
Ending balance | 135 | 152 | 97 | 135 | 97 | ||
Other Financial Instruments | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Provision | 12 | ||||||
Domestic | Overdrafts | |||||||
Collectively evaluated for impairment: | |||||||
Loan balance | 1,247 | 1,247 | |||||
Loan balance | 1,247 | 1,247 | |||||
Domestic | Margin loans | |||||||
Collectively evaluated for impairment: | |||||||
Loan balance | 10,177 | 10,177 | |||||
Loan balance | 10,177 | 10,177 | |||||
Domestic | Other | |||||||
Collectively evaluated for impairment: | |||||||
Loan balance | 1,143 | 1,143 | |||||
Loan balance | 1,143 | 1,143 | |||||
Foreign | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 33 | 24 | 32 | 32 | |||
Charge-offs | 0 | 0 | 0 | ||||
Recoveries | 0 | 0 | 0 | ||||
Net (charge-offs) recoveries | 0 | 0 | 0 | ||||
Provision | (5) | 0 | (4) | ||||
Ending balance | 0 | 28 | 0 | 28 | 24 | 32 | |
Individually evaluated for impairment: | |||||||
Loan balance | 0 | 0 | |||||
Allowance for loan losses | 0 | 0 | |||||
Collectively evaluated for impairment: | |||||||
Loan balance | 13,871 | 13,871 | |||||
Allowance for loan losses | 19 | 19 | |||||
Loan balance | 13,871 | 13,871 | |||||
Foreign | Loans | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Ending balance | 19 | 19 | |||||
Foreign | Lending-related commitments | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Ending balance | 9 | 9 | |||||
Commercial | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 40 | 77 | 60 | 81 | 81 | ||
Charge-offs | 0 | 0 | (1) | 0 | (12) | ||
Recoveries | 0 | 0 | 0 | 0 | 0 | ||
Net (charge-offs) recoveries | 0 | 0 | (1) | 0 | (12) | ||
Provision | (13) | 14 | (15) | 10 | (8) | ||
Ending balance | 27 | 40 | 61 | 27 | 61 | 60 | 81 |
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 | 1,335 | 1,335 | |||||
Allowance for loan losses | 10 | 10 | |||||
Loan balance | 1,335 | 1,335 | |||||
Commercial | Domestic | Loans | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 23 | ||||||
Ending balance | 14 | 23 | 10 | 14 | 10 | ||
Commercial | Domestic | Lending-related commitments | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 17 | ||||||
Ending balance | 13 | 17 | 51 | 13 | 51 | ||
Commercial | Foreign | Reclassification | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Ending balance | 10 | 10 | |||||
Commercial real estate | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 372 | 72 | 76 | 75 | 75 | ||
Charge-offs | 0 | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | 0 | ||
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | 0 | ||
Provision | 14 | 164 | 5 | 296 | 2 | ||
Ending balance | 386 | 372 | 77 | 386 | 77 | 76 | 75 |
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 | 5,292 | 5,292 | |||||
Allowance for loan losses | 57 | 57 | |||||
Loan balance | 5,292 | 5,292 | |||||
Commercial real estate | Domestic | Loans | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 244 | ||||||
Ending balance | 270 | 244 | 57 | 270 | 57 | ||
Commercial real estate | Domestic | Lending-related commitments | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 128 | ||||||
Ending balance | 116 | 128 | 20 | 116 | 20 | ||
Financial institutions | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 16 | 21 | 20 | 22 | 22 | ||
Charge-offs | 0 | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | 0 | ||
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | 0 | ||
Provision | (5) | (2) | 0 | (3) | (1) | ||
Ending balance | 11 | 16 | 21 | 11 | 21 | 20 | 22 |
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 | 4,973 | 4,973 | |||||
Allowance for loan losses | 7 | 7 | |||||
Loan balance | 4,973 | 4,973 | |||||
Financial institutions | Domestic | Loans | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 11 | ||||||
Ending balance | 7 | 11 | 7 | 7 | 7 | ||
Financial institutions | Domestic | Lending-related commitments | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 5 | ||||||
Ending balance | 4 | 5 | 14 | 4 | 14 | ||
Financial institutions | Foreign | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 11 | ||||||
Ending balance | 8 | 11 | 8 | ||||
Financial institutions | Foreign | Reclassification | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Ending balance | 10 | 10 | |||||
Lease financings | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 3 | 4 | 3 | 5 | 5 | ||
Charge-offs | 0 | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | 0 | ||
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | 0 | ||
Provision | 0 | (10) | (1) | 0 | (2) | ||
Ending balance | 3 | 3 | 3 | 3 | 3 | 3 | 5 |
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 | 559 | 559 | |||||
Allowance for loan losses | 3 | 3 | |||||
Loan balance | 559 | 559 | |||||
Lease financings | Domestic | Loans | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 3 | ||||||
Ending balance | 3 | 3 | 3 | 3 | 3 | ||
Lease financings | Domestic | Lending-related commitments | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 0 | ||||||
Ending balance | 0 | 0 | 0 | 0 | 0 | ||
Lease financings | Foreign | Reclassification | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Ending balance | 4 | 4 | |||||
Wealth management loans and mortgages | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 11 | 20 | 20 | 21 | 21 | ||
Charge-offs | 0 | 0 | 0 | 0 | (1) | ||
Recoveries | 0 | 0 | 0 | 0 | 0 | ||
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | (1) | ||
Provision | 4 | 2 | 0 | 7 | 0 | ||
Ending balance | 15 | 11 | 20 | 15 | 20 | 20 | 21 |
Individually evaluated for impairment: | |||||||
Loan balance | 17 | 18 | 16 | 17 | 16 | ||
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | ||
Collectively evaluated for impairment: | |||||||
Loan balance | 15,748 | 15,748 | |||||
Allowance for loan losses | 17 | 17 | |||||
Loan balance | 15,748 | 15,748 | |||||
Wealth management loans and mortgages | Domestic | Loans | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 9 | ||||||
Ending balance | 13 | 9 | 17 | 13 | 17 | ||
Wealth management loans and mortgages | Domestic | Lending-related commitments | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 2 | ||||||
Ending balance | 2 | 2 | 3 | 2 | 3 | ||
Other residential mortgages | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 12 | 14 | 13 | 16 | 16 | ||
Charge-offs | 0 | 0 | 0 | 0 | 0 | ||
Recoveries | 1 | 3 | 0 | 4 | 2 | ||
Net (charge-offs) recoveries | 1 | 3 | 0 | 4 | 2 | ||
Provision | 5 | (5) | 0 | (1) | (4) | ||
Ending balance | 18 | 12 | 14 | 18 | 14 | 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 | 520 | 520 | |||||
Allowance for loan losses | 14 | 14 | |||||
Loan balance | 520 | 520 | |||||
Other residential mortgages | Domestic | Loans | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 12 | ||||||
Ending balance | 18 | 12 | 14 | 18 | 14 | ||
Other residential mortgages | Domestic | Lending-related commitments | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 0 | ||||||
Ending balance | 0 | 0 | 0 | 0 | 0 | ||
Other Financial Instruments | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Provision | $ 4 | (20) | |||||
All other | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 0 | 0 | 0 | ||||
Charge-offs | 0 | 0 | |||||
Recoveries | 0 | 0 | |||||
Net (charge-offs) recoveries | 0 | 0 | |||||
Provision | 0 | 0 | |||||
Ending balance | 0 | 0 | $ 0 | ||||
Individually evaluated for impairment: | |||||||
Loan balance | 0 | 0 | |||||
Allowance for loan losses | 0 | 0 | |||||
Collectively evaluated for impairment: | |||||||
Loan balance | 12,567 | 12,567 | |||||
Allowance for loan losses | 0 | 0 | |||||
Loan balance | 12,567 | 12,567 | |||||
All other | Domestic | Loans | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Ending balance | 0 | 0 | |||||
All other | Domestic | Lending-related commitments | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Ending balance | $ 0 | $ 0 | |||||
Cumulative Effect, Period Of Adoption, Adjustment | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | (69) | ||||||
Ending balance | (69) | ||||||
Cumulative Effect, Period Of Adoption, Adjustment | Foreign | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | (24) | ||||||
Ending balance | (24) | ||||||
Cumulative Effect, Period Of Adoption, Adjustment | Commercial | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | (43) | ||||||
Ending balance | (43) | ||||||
Cumulative Effect, Period Of Adoption, Adjustment | Commercial real estate | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 14 | ||||||
Ending balance | 14 | ||||||
Cumulative Effect, Period Of Adoption, Adjustment | Financial institutions | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | (6) | ||||||
Ending balance | (6) | ||||||
Cumulative Effect, Period Of Adoption, Adjustment | Lease financings | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 0 | ||||||
Ending balance | 0 | ||||||
Cumulative Effect, Period Of Adoption, Adjustment | Wealth management loans and mortgages | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | (12) | ||||||
Ending balance | (12) | ||||||
Cumulative Effect, Period Of Adoption, Adjustment | Other residential mortgages | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 2 | ||||||
Ending balance | 2 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 288 | 147 | |||||
Ending balance | 147 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Foreign | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 0 | ||||||
Ending balance | 0 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Commercial | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 26 | 17 | |||||
Ending balance | 17 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Commercial real estate | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 208 | 90 | |||||
Ending balance | 90 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Financial institutions | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 18 | 14 | |||||
Ending balance | 14 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Lease financings | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 13 | 3 | |||||
Ending balance | 3 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Wealth management loans and mortgages | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | 9 | 8 | |||||
Ending balance | 8 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Other residential mortgages | Domestic | |||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | $ 14 | $ 15 | |||||
Ending balance | $ 15 |
Loans and asset quality - Nonpe
Loans and asset quality - Nonperforming Assets (Details) - Domestic - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Impaired [Line Items] | ||
With an allowance | $ 66 | |
Without an allowance | 17 | |
Total nonperforming loans | 83 | $ 86 |
With an allowance, Other assets owned | 0 | |
Without an allowance, Other assets owned | 1 | |
Other assets owned | 1 | 3 |
With an allowance, Total nonperforming assets | 66 | |
Without an allowance, Total nonperforming assets | 18 | |
Total nonperforming assets | 84 | 89 |
Other residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
With an allowance | 56 | |
Without an allowance | 0 | |
Total nonperforming loans | 56 | 62 |
Wealth management loans and mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
With an allowance | 10 | |
Without an allowance | 17 | |
Total nonperforming loans | $ 27 | $ 24 |
Loans and asset quality - Past
Loans and asset quality - Past Due Loans (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | $ 37 | $ 87 |
30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 36 | 37 |
60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 1 | 50 |
Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Domestic | Wealth management loans and mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 21 | 27 |
Domestic | Wealth management loans and mortgages | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 20 | 22 |
Domestic | Wealth management loans and mortgages | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 1 | 5 |
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 | 0 |
Domestic | Other residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 7 | 11 |
Domestic | Other residential mortgages | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 7 | 8 |
Domestic | Other residential mortgages | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 0 | 3 |
Domestic | Other residential mortgages | Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 0 | 0 |
Domestic | Financial institutions | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 0 | 31 |
Domestic | Financial institutions | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 0 | 1 |
Domestic | Financial institutions | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 0 | 30 |
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 | 18 |
Domestic | Commercial real estate | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 9 | 6 |
Domestic | Commercial real estate | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due loans | 0 | 12 |
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 - Loa_2
Loans and asset quality - Loan Modifications (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, modifications, CARES Act | $ 106 | $ 282 | |
Unpaid principal balance | 174 | ||
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, modifications, CARES Act | $ 56 | ||
Other residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Outstanding recorded investment post-modification | $ 4 |
Loans and asset quality - Credi
Loans and asset quality - Credit Risk Profile by Origination (Details) $ in Millions | Sep. 30, 2020USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | $ 5,658 |
2019 | 3,180 |
2018 | 2,006 |
2017 | 2,703 |
2016 | 2,526 |
Prior to 2016 | 4,884 |
Amortized cost | 30,542 |
Converted to term loans - Amortized cost | 29 |
Total | 51,528 |
Accrued interest receivable | 61 |
Wealth management mortgages | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | 781 |
2019 | 1,082 |
2018 | 682 |
2017 | 1,267 |
2016 | 1,622 |
Prior to 2016 | 2,748 |
Amortized cost | 34 |
Converted to term loans - Amortized cost | 0 |
Total | 8,216 |
Wealth management loans and mortgages | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | 812 |
2019 | 1,162 |
2018 | 693 |
2017 | 1,416 |
2016 | 1,678 |
Prior to 2016 | 2,833 |
Amortized cost | 7,332 |
Converted to term loans - Amortized cost | 0 |
Total | 15,926 |
Accrued interest receivable | 29 |
Other residential mortgages | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior to 2016 | 423 |
Amortized cost | 0 |
Converted to term loans - Amortized cost | 0 |
Total | 423 |
Accrued interest receivable | 2 |
Other loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior to 2016 | 0 |
Amortized cost | 1,658 |
Converted to term loans - Amortized cost | 0 |
Total | 1,658 |
Accrued interest receivable | 1 |
Margin loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | 3,553 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior to 2016 | 0 |
Amortized cost | 9,945 |
Converted to term loans - Amortized cost | 0 |
Total | 13,498 |
Accrued interest receivable | 7 |
Investment grade | Loans receivable | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | 31 |
2019 | 80 |
2018 | 11 |
2017 | 149 |
2016 | 56 |
Prior to 2016 | 85 |
Amortized cost | 7,235 |
Converted to term loans - Amortized cost | 0 |
Total | 7,647 |
Non-investment grade | Loans receivable | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior to 2016 | 0 |
Amortized cost | 63 |
Converted to term loans - Amortized cost | 0 |
Total | 63 |
Commercial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | 238 |
2019 | 134 |
2018 | 103 |
2017 | 450 |
2016 | 57 |
Prior to 2016 | 0 |
Amortized cost | 959 |
Converted to term loans - Amortized cost | 0 |
Total | 1,941 |
Accrued interest receivable | 1 |
Commercial | Investment grade | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | 153 |
2019 | 73 |
2018 | 96 |
2017 | 450 |
2016 | 57 |
Prior to 2016 | 0 |
Amortized cost | 893 |
Converted to term loans - Amortized cost | 0 |
Total | 1,722 |
Commercial | Non-investment grade | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | 85 |
2019 | 61 |
2018 | 7 |
2017 | 0 |
2016 | 0 |
Prior to 2016 | 0 |
Amortized cost | 66 |
Converted to term loans - Amortized cost | 0 |
Total | 219 |
Commercial real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | 771 |
2019 | 1,591 |
2018 | 1,146 |
2017 | 702 |
2016 | 752 |
Prior to 2016 | 582 |
Amortized cost | 419 |
Converted to term loans - Amortized cost | 29 |
Total | 5,992 |
Accrued interest receivable | 8 |
Commercial real estate | Investment grade | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | 611 |
2019 | 1,065 |
2018 | 542 |
2017 | 543 |
2016 | 385 |
Prior to 2016 | 430 |
Amortized cost | 175 |
Converted to term loans - Amortized cost | 0 |
Total | 3,751 |
Commercial real estate | Non-investment grade | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | 160 |
2019 | 526 |
2018 | 604 |
2017 | 159 |
2016 | 367 |
Prior to 2016 | 152 |
Amortized cost | 244 |
Converted to term loans - Amortized cost | 29 |
Total | 2,241 |
Financial institutions | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | 158 |
2019 | 274 |
2018 | 47 |
2017 | 125 |
2016 | 14 |
Prior to 2016 | 165 |
Amortized cost | 10,229 |
Converted to term loans - Amortized cost | 0 |
Total | 11,012 |
Accrued interest receivable | 13 |
Financial institutions | Investment grade | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | 60 |
2019 | 238 |
2018 | 47 |
2017 | 125 |
2016 | 14 |
Prior to 2016 | 165 |
Amortized cost | 8,471 |
Converted to term loans - Amortized cost | 0 |
Total | 9,120 |
Financial institutions | Non-investment grade | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | 98 |
2019 | 36 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior to 2016 | 0 |
Amortized cost | 1,758 |
Converted to term loans - Amortized cost | 0 |
Total | 1,892 |
Lease financings | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
YTD20 | 126 |
2019 | 19 |
2018 | 17 |
2017 | 10 |
2016 | 25 |
Prior to 2016 | 881 |
Amortized cost | 0 |
Converted to term loans - Amortized cost | 0 |
Total | 1,078 |
Accrued interest receivable | $ 0 |
Loans and asset quality - Cre_2
Loans and asset quality - Credit Risk Indicators Narrative (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of exposure to investment grade securities | 95.00% | |
Percentage of financial institution exposure secured | 75.00% | |
Percent of financial institution exposure expiring within one year | 89.00% | |
Loans | $ 55,491,000,000 | $ 54,953,000,000 |
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% | |
Wealth management loans and mortgages | California | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Geographic concentrations (percent) | 22.00% | |
Wealth management loans and mortgages | New York | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Geographic concentrations (percent) | 17.00% | |
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) | 43.00% | |
Other residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 423,000,000 | 494,000,000 |
Overdrafts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,700,000,000 | |
Overdraft repayment period | 2 days | |
Margin loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 13,500,000,000 | 13,400,000,000 |
Domestic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 43,186,000,000 | 42,548,000,000 |
Domestic | Wealth management loans and mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 15,805,000,000 | 16,050,000,000 |
Domestic | Other residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 423,000,000 | 494,000,000 |
Purchased mortgages | 76,000,000 | |
Domestic | Overdrafts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 899,000,000 | 524,000,000 |
Domestic | Margin loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 11,220,000,000 | 11,907,000,000 |
Domestic | Margin loans | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Required daily collateral margin (in excess of) | 100.00% | |
Equal to or greater than 60 days past due | Domestic | Other residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of past due mortgages (less than) | 19.00% | |
Overdrafts | Overdrafts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 3,963,000,000 | |
Operating segments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 55,491,000,000 | $ 54,953,000,000 |
Federal funds sold and securities purchased under resale agreements, allowance for credit losses | $ 0 |
Goodwill and intangible asset_2
Goodwill and intangible assets - Goodwill (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 17,386 | $ 17,350 |
Foreign currency translation | (29) | (102) |
Other | 0 | |
Ending balance | 17,357 | 17,248 |
Investment Services | ||
Goodwill [Roll Forward] | ||
Beginning balance | 8,332 | 8,333 |
Foreign currency translation | 21 | (45) |
Other | 47 | |
Ending balance | 8,400 | 8,288 |
Investment and Wealth Management | ||
Goodwill [Roll Forward] | ||
Beginning balance | 9,007 | 8,970 |
Foreign currency translation | (50) | (57) |
Other | 0 | |
Ending balance | 8,957 | 8,913 |
Other | ||
Goodwill [Roll Forward] | ||
Beginning balance | 47 | 47 |
Foreign currency translation | 0 | 0 |
Other | (47) | |
Ending balance | $ 0 | $ 47 |
Goodwill and intangible asset_3
Goodwill and intangible assets - Intangible Assets by Business Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Intangible Assets [Roll Forward] | |||||
Beginning Balance | $ 3,107 | $ 3,220 | |||
Amortization | $ (26) | $ (26) | $ (30) | (78) | (89) |
Foreign currency translation | (3) | (7) | |||
Ending Balance | 3,026 | 3,124 | 3,026 | 3,124 | |
Investment Services | |||||
Intangible Assets [Roll Forward] | |||||
Beginning Balance | 678 | 758 | |||
Amortization | (54) | (61) | |||
Foreign currency translation | 1 | (1) | |||
Ending Balance | 625 | 696 | 625 | 696 | |
Investment and Wealth Management | |||||
Intangible Assets [Roll Forward] | |||||
Beginning Balance | 1,580 | 1,613 | |||
Amortization | (24) | (28) | |||
Foreign currency translation | (4) | (6) | |||
Ending Balance | 1,552 | 1,579 | 1,552 | 1,579 | |
Other | |||||
Intangible Assets [Roll Forward] | |||||
Beginning Balance | 849 | 849 | |||
Amortization | 0 | 0 | |||
Foreign currency translation | 0 | 0 | |||
Ending Balance | $ 849 | $ 849 | $ 849 | $ 849 |
Goodwill and intangible asset_4
Goodwill and intangible assets - Intangible Assets by Type (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | $ 4,838 | $ 4,881 | ||
Accumulated amortization | (1,812) | (1,774) | ||
Net carrying amount | 3,026 | 3,107 | $ 3,124 | $ 3,220 |
Finite-lived Intangible Assets | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | 2,257 | 2,296 | ||
Accumulated amortization | (1,812) | (1,774) | ||
Net carrying amount | $ 445 | 522 | ||
Finite-lived Intangible Assets | Weighted Average | ||||
Intangible Assets by Major Class [Line Items] | ||||
Remaining weighted- average amortization period | 10 years | |||
Finite-lived Intangible Assets | Customer contracts—Investment Services | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | $ 1,482 | 1,520 | ||
Accumulated amortization | (1,228) | (1,214) | ||
Net carrying amount | $ 254 | 306 | ||
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 | $ 711 | 712 | ||
Accumulated amortization | (563) | (544) | ||
Net carrying amount | $ 148 | 168 | ||
Finite-lived Intangible Assets | Customer relationships | Weighted Average | ||||
Intangible Assets by Major Class [Line Items] | ||||
Remaining weighted- average amortization period | 10 years | |||
Finite-lived Intangible Assets | Other | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | $ 64 | 64 | ||
Accumulated amortization | (21) | (16) | ||
Net carrying amount | $ 43 | 48 | ||
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 | $ 2,581 | 2,585 | ||
Net carrying amount | 2,581 | 2,585 | ||
Indefinite-lived Intangible Assets | Tradenames | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | 1,292 | 1,293 | ||
Net carrying amount | 1,292 | 1,293 | ||
Indefinite-lived Intangible Assets | Customer relationships | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | 1,289 | 1,292 | ||
Net carrying amount | $ 1,289 | $ 1,292 |
Goodwill and intangible asset_5
Goodwill and intangible assets - Estimated Annual Amortization Expense (Details) $ in Millions | Sep. 30, 2020USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2020 | $ 104 |
2021 | 81 |
2022 | 63 |
2023 | 52 |
2024 | $ 45 |
Goodwill and intangible asset_6
Goodwill and intangible assets - Narrative (Details) | 3 Months Ended | 9 Months Ended |
Jun. 30, 2020USD ($) | Sep. 30, 2020Segmentreporting_unit | |
Goodwill [Line Items] | ||
Number of operating segments (segment) | Segment | 3 | |
Number of reporting units (reporting unit) | 6 | |
Goodwill impairment | $ | $ 0 | |
Investment Services | ||
Goodwill [Line Items] | ||
Number of reporting units (reporting unit) | 4 | |
Investment and Wealth Management | ||
Goodwill [Line Items] | ||
Number of reporting units (reporting unit) | 2 |
Other assets - Components of Ot
Other assets - Components of Other Assets (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Other Assets [Abstract] | ||
Corporate/bank-owned life insurance | $ 5,276 | $ 5,219 |
Accounts receivable | 3,549 | 3,802 |
Fails to deliver | 2,192 | 1,671 |
Software | 1,832 | 1,590 |
Prepaid pension assets | 1,599 | 1,464 |
Equity in a joint venture and other investments | 1,190 | 1,102 |
Renewable energy investments | 1,057 | 1,144 |
Qualified affordable housing project investments | 997 | 1,024 |
Prepaid expense | 522 | 491 |
Federal Reserve Bank stock | 478 | 466 |
Income taxes receivable | 332 | 388 |
Seed capital | 200 | 184 |
Fair value of hedging derivatives | 56 | 21 |
Other | 1,499 | 1,655 |
Total other assets | 20,779 | 20,221 |
Federal Home Loan Bank stock, at cost | $ 8 | $ 22 |
Other assets - Non-Readily Mark
Other assets - Non-Readily Marketable Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Other Assets [Abstract] | ||||||
Equity securities without readily determinable fair value, amount | $ 112 | $ 112 | $ 61 | |||
Equity securities without readily determinable fair value, upward price adjustment, annual amount | 4 | $ 2 | $ 1 | 10 | $ 3 | |
Equity securities without readily determinable fair value, downward price adjustment, annual amount | 0 | 0 | 0 | 0 | (1) | |
Equity securities without readily determinable fair value, net adjustment, annual amount | 4 | $ 2 | $ 1 | 10 | $ 2 | |
Equity securities without readily determinable fair value, upward price adjustment, cumulative amount amount | 42 | 42 | ||||
Equity securities without readily determinable fair value, downward price adjustment, cumulative amount | (4) | (4) | ||||
Equity securities without readily determinable fair value, net price adjustment, cumulative amount | $ 38 | $ 38 |
Other assets - Qualified Afford
Other assets - Qualified Affordable Housing Project Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Other Assets [Abstract] | ||||||
Qualified affordable housing project investments | $ 997 | $ 997 | $ 1,024 | |||
Qualified affordable housing project investments, commitment | 388 | 388 | $ 422 | |||
Qualified affordable housing project commitment - 2020 | 40 | 40 | ||||
Qualified affordable housing project commitment - 2021 | 187 | 187 | ||||
Qualified affordable housing project commitment - 2022 | 99 | 99 | ||||
Qualified affordable housing project commitment - 2023 | 36 | 36 | ||||
Qualified affordable housing project commitment - 2024 | 1 | 1 | ||||
Qualified affordable housing project commitment - 2025 and thereafter | 25 | 25 | ||||
Tax credits and other tax benefits | 35 | $ 38 | $ 39 | 111 | $ 117 | |
Amortization expense included in the provision for income taxes | $ 30 | $ 31 | $ 33 | $ 92 | $ 97 |
Other assets - Seed Capital and
Other assets - Seed Capital and Private Equity Investments (Details) - Other Assets - NAV - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Fair value | $ 184 | $ 181 |
Unfunded commitments | 66 | 55 |
Seed capital | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Fair value | 44 | 59 |
Unfunded commitments | 11 | $ 0 |
Fair value, investments, entities that calculate net asset value per share, liquidating investment, remaining period | 6 years | |
Private equitiy investments (SBICs) | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Fair value | 97 | $ 89 |
Unfunded commitments | $ 55 | 55 |
Fair value, investments, entities that calculate net asset value per share, liquidating investment, remaining period | 10 years | |
Other | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Fair value | $ 43 | 33 |
Unfunded commitments | $ 0 | $ 0 |
Minimum | Seed capital | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Fair value, investments, entities that calculate net asset value per share, liquidating investment, remaining period | 6 years | |
Maximum | Seed capital | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Fair value, investments, entities that calculate net asset value per share, liquidating investment, remaining period | 11 years | |
Maximum | Other | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Redemption notice period | 95 days | 95 days |
Contract revenue - Disaggregati
Contract revenue - Disaggregation of Contract Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | |||||
Total fee and other revenue | $ 3,117 | $ 3,176 | $ 3,128 | $ 9,625 | $ 9,272 |
Income from consolidated investment management funds, net of noncontrolling interests | 937 | 950 | 1,038 | 2,867 | 3,001 |
Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 2,905 | 2,876 | 2,902 | 8,746 | 8,538 |
Fee and other revenue - not in scope of ASC 606 | 232 | 339 | 226 | 918 | 756 |
Total fee and other revenue | 3,137 | 3,215 | 3,128 | 9,664 | 9,294 |
Asset servicing fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 1,155 | 1,157 | 1,121 | 3,451 | 3,323 |
Clearing services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 397 | 431 | 419 | 1,298 | 1,227 |
Issuer services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 296 | 277 | 324 | 836 | 866 |
Treasury services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 152 | 145 | 140 | 446 | 413 |
Total investment services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 2,000 | 2,010 | 2,004 | 6,031 | 5,829 |
Investment management and performance fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 839 | 791 | 829 | 2,493 | 2,503 |
Financing-related fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 15 | 24 | 14 | 67 | 48 |
Distribution and servicing | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 29 | 27 | 33 | 87 | 95 |
Investment and other income | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 22 | 24 | 22 | 68 | 63 |
Investment Services | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 2,061 | 2,081 | 2,067 | 6,244 | 6,018 |
Fee and other revenue - not in scope of ASC 606 | 185 | 258 | 229 | 777 | 672 |
Total fee and other revenue | 2,246 | 2,339 | 2,296 | 7,021 | 6,690 |
Investment Services | Asset servicing fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 1,143 | 1,147 | 1,106 | 3,417 | 3,282 |
Investment Services | Clearing services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 397 | 431 | 419 | 1,298 | 1,228 |
Investment Services | Issuer services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 296 | 277 | 324 | 836 | 866 |
Investment Services | Treasury services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 153 | 144 | 140 | 446 | 412 |
Investment Services | Total investment services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 1,989 | 1,999 | 1,989 | 5,997 | 5,788 |
Investment Services | Investment management and performance fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 4 | 4 | 4 | 13 | 12 |
Investment Services | Financing-related fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 13 | 23 | 14 | 64 | 47 |
Investment Services | Distribution and servicing | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | (2) | (7) | (12) | (21) | (39) |
Investment Services | Investment and other income | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 57 | 62 | 72 | 191 | 210 |
Investment and Wealth Management | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 863 | 811 | 844 | 2,552 | 2,551 |
Fee and other revenue - not in scope of ASC 606 | 8 | 27 | (6) | 3 | 10 |
Total fee and other revenue | 871 | 838 | 838 | 2,555 | 2,561 |
Income from consolidated investment management funds, net of noncontrolling interests | 20 | 39 | 0 | 39 | 22 |
Investment and Wealth Management | Asset servicing fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 25 | 25 | 20 | 73 | 60 |
Investment and Wealth Management | Clearing services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 0 | 0 | 0 | 0 | 0 |
Investment and Wealth Management | Issuer services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 0 | 0 | 0 | 0 | 0 |
Investment and Wealth Management | Treasury services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 1 | 0 | 0 | 1 | 1 |
Investment and Wealth Management | Total investment services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 26 | 25 | 20 | 74 | 61 |
Investment and Wealth Management | Investment management and performance fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 838 | 792 | 829 | 2,492 | 2,503 |
Investment and Wealth Management | Financing-related fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 1 | 1 | 0 | 2 | 0 |
Investment and Wealth Management | Distribution and servicing | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 31 | 34 | 45 | 108 | 134 |
Investment and Wealth Management | Investment and other income | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | (33) | (41) | (50) | (124) | (147) |
Other | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | (19) | (16) | (9) | (50) | (31) |
Fee and other revenue - not in scope of ASC 606 | 39 | 54 | 3 | 138 | 74 |
Total fee and other revenue | 20 | 38 | (6) | 88 | 43 |
Other | Asset servicing fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | (13) | (15) | (5) | (39) | (19) |
Other | Clearing services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 0 | 0 | 0 | 0 | (1) |
Other | Issuer services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 0 | 0 | 0 | 0 | 0 |
Other | Treasury services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | (2) | 1 | 0 | (1) | 0 |
Other | Total investment services fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | (15) | (14) | (5) | (40) | (20) |
Other | Investment management and performance fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | (3) | (5) | (4) | (12) | (12) |
Other | Financing-related fees | Operating segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total fee revenue - contract revenue | 1 | 0 | 0 | 1 | 1 |
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 | $ (2) | $ 3 | $ 0 | $ 1 | $ 0 |
Contract revenue - Narrative (D
Contract revenue - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Capitalized Contract Cost [Line Items] | ||||||
Contract with customer, asset | $ 2,500,000,000 | $ 2,500,000,000 | $ 2,400,000,000 | |||
Contract assets representing accrued revenues not yet billed | 57,000,000 | 57,000,000 | 32,000,000 | |||
Contract with customer, liability | 187,000,000 | 187,000,000 | 168,000,000 | |||
Contract with customer, liability, revenue recognized | 65,000,000 | 95,000,000 | ||||
Capitalized contract cost, impairment | 0 | |||||
Incremental costs for obtaining contracts | ||||||
Capitalized Contract Cost [Line Items] | ||||||
Capitalized contract costs | $ 77,000,000 | $ 77,000,000 | 86,000,000 | |||
Capitalized contract cost, amortization period | 9 years | 9 years | ||||
Capitalized contract cost, amortization | $ 6,000,000 | $ 5,000,000 | $ 7,000,000 | $ 16,000,000 | $ 17,000,000 | |
Costs to fulfill contract | ||||||
Capitalized Contract Cost [Line Items] | ||||||
Capitalized contract costs | 12,000,000 | 12,000,000 | $ 16,000,000 | |||
Capitalized contract cost, amortization | $ 1,000,000 | $ 2,000,000 | $ 1,000,000 | $ 4,000,000 | $ 4,000,000 | |
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 | 9 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |||
Interest revenue | |||||||
Deposits with the Federal Reserve and other central banks | $ (10) | $ (7) | $ 102 | $ 63 | $ 354 | ||
Deposits with banks | 20 | 40 | 73 | 118 | 200 | ||
Federal funds sold and securities purchased under resale agreements | 48 | 61 | 660 | 505 | 1,702 | ||
Margin loans | 41 | 40 | 104 | 168 | 358 | ||
Non-margin loans | 199 | 230 | 287 | 738 | 1,007 | ||
Securities: | |||||||
Taxable | 499 | 556 | 669 | 1,649 | 2,062 | ||
Exempt from federal income taxes | 7 | 6 | 7 | 19 | 29 | ||
Total securities | 506 | 562 | 676 | 1,668 | 2,091 | ||
Trading securities | 16 | 17 | 40 | 73 | 115 | ||
Total interest revenue | 820 | 943 | 1,942 | 3,333 | 5,827 | ||
Interest expense | |||||||
Deposits | (29) | (17) | 437 | 194 | 1,260 | ||
Federal funds purchased and securities sold under repurchase agreements | 6 | 1 | 443 | 282 | 1,146 | ||
Trading liabilities | 2 | 2 | 8 | 11 | 26 | ||
Other borrowed funds | 3 | 7 | 10 | 14 | 54 | ||
Commercial paper | 0 | 1 | 22 | 7 | 48 | ||
Customer payables | 0 | (1) | 59 | 29 | 198 | ||
Long-term debt | 135 | 170 | 233 | 499 | 722 | ||
Total interest expense | 117 | 163 | 1,212 | 1,036 | 3,454 | ||
Net interest revenue | 703 | 780 | 730 | 2,297 | 2,373 | ||
Provision for credit losses | 9 | 143 | (16) | 321 | [1] | (17) | [1] |
Net interest revenue after provision for credit losses | $ 694 | $ 637 | 746 | $ 1,976 | 2,390 | ||
Operating lease, impairment loss | $ 70 | $ 70 | |||||
[1] | In the first quarter of 2020, we adopted new accounting guidance included in ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, on a prospective basis. See Note 2 of the Notes to Consolidated Financial Statements for additional information. |
Employee benefit plans - Combin
Employee benefit plans - Combined Data for Defined Benefit Pension and Post Retirement Healthcare Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension Benefits | Domestic | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 39 | 39 | 44 | 117 | 133 |
Expected return on assets | (80) | (79) | (84) | (239) | (252) |
Other | 22 | 21 | 13 | 65 | 39 |
Net periodic benefit (credit) cost | (19) | (19) | (27) | (57) | (80) |
Pension Benefits | Foreign | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 3 | 3 | 3 | 9 | 9 |
Interest cost | 7 | 6 | 8 | 20 | 24 |
Expected return on assets | (10) | (9) | (11) | (29) | (34) |
Other | 2 | 3 | 0 | 8 | 1 |
Net periodic benefit (credit) cost | 2 | 3 | 0 | 8 | 0 |
Healthcare Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0 | 0 | 0 | 0 | 0 |
Interest cost | 2 | 1 | 2 | 4 | 5 |
Expected return on assets | (2) | (2) | (1) | (5) | (5) |
Other | (1) | 0 | (1) | (2) | (2) |
Net periodic benefit (credit) cost | $ (1) | $ (1) | $ 0 | $ (3) | $ (2) |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||||
Provision for income taxes | $ 213 | $ 216 | $ 246 | $ 694 | $ 747 | |
Effective tax rate | 18.40% | 18.30% | 19.10% | |||
Tax reserves | $ 85 | 85 | $ 173 | |||
Impact on effective tax rate if tax reserves were unnecessary | 85 | 85 | ||||
Accrued interest, related to income taxes in the balance sheet | 23 | 23 | ||||
Additional tax expense related to interest | 5 | $ 9 | ||||
Reasonably possible decrease in uncertain tax positions within the next 12 months, if a re-evaluation is required | $ 15 | $ 15 |
Variable interest entities an_3
Variable interest entities and securitization - Assets and Liabilities of VIEs (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Nonredeemable noncontrolling interests | $ 251 | $ 102 |
VME classification of carrying amount, assets | 226 | 50 |
VME classification of carrying amount, liabilities | 1 | 1 |
Noncontrolling interest in VME | 31 | 1 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Trading assets | 979 | 629 |
Other assets | 9 | 16 |
Total assets | 988 | 645 |
Other liabilities | 404 | 388 |
Total liabilities | 404 | 388 |
Nonredeemable noncontrolling interests | 251 | 102 |
Variable Interest Entity, Primary Beneficiary | Investment Management funds | ||
Variable Interest Entity [Line Items] | ||
Trading assets | 579 | 229 |
Other assets | 9 | 16 |
Total assets | 588 | 245 |
Other liabilities | 4 | 1 |
Total liabilities | 4 | 1 |
Nonredeemable noncontrolling interests | 251 | 102 |
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 | 400 | 387 |
Total liabilities | 400 | 387 |
Nonredeemable noncontrolling interests | $ 0 | $ 0 |
Variable interest entities an_4
Variable interest entities and securitization - Non-consolidated VIEs (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Assets | $ 428,398 | $ 381,508 |
Liabilities | 383,051 | 339,780 |
Variable Interest Entity, Not Primary Beneficiary | Securities available-for-sale | ||
Variable Interest Entity [Line Items] | ||
Assets | 206 | 208 |
Liabilities | 0 | 0 |
Maximum loss exposure | 206 | 208 |
Variable Interest Entity, Not Primary Beneficiary | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 2,278 | 2,400 |
Liabilities | 388 | 422 |
Maximum loss exposure | $ 2,675 | $ 2,822 |
Preferred stock - Narrative (De
Preferred stock - Narrative (Details) - $ / shares | 9 Months Ended | ||
Sep. 30, 2020 | May 31, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 | |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 | |
Series G Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized (shares) | 1,000,000 | ||
Per annum dividend rate | 4.70% | ||
LIBOR | Series G Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, basis spread on variable rate | 4.358% |
Preferred stock - Summary (Deta
Preferred stock - Summary (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | ||
Total shares issued and outstanding (shares) | 45,826 | 35,826 |
Carrying value | $ 4,532 | $ 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 but excluding 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 but excluding 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% | |
Series G Noncumulative Perpetual Preferred Stock | ||
Class of Stock [Line Items] | ||
Per annum dividend rate description | 4.70% to but excluding Sept. 20, 2025, then a floating rate equal to the five-year treasury rate plus 4.358% | |
Per annum dividend rate | 4.70% | |
Total shares issued and outstanding (shares) | 10,000 | 0 |
Carrying value | $ 990 | $ 0 |
Liquidation preference per share (usd per share) | $ 100,000 | |
Series G Noncumulative Perpetual Preferred Stock | LIBOR | ||
Class of Stock [Line Items] | ||
Preferred stock, basis spread on variable rate | 4.358% |
Preferred stock - Summary of Pr
Preferred stock - Summary of Preferred Dividends Paid (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Class of Stock [Line Items] | |||||
Preferred dividends paid | $ 61 | $ 49 | $ 36 | $ 146 | $ 120 |
Series A Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Depositary shares per share | 1.00% | 1.00% | |||
Dividend paid per share (usd per share) | $ 1,011.11 | $ 1,022.22 | $ 1,022.22 | $ 3,044.44 | $ 3,044.44 |
Preferred dividends paid | $ 5 | $ 5 | $ 5 | $ 15 | $ 15 |
Series C Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Depositary shares per share | 0.03% | 0.03% | |||
Dividend paid per share (usd per share) | $ 1,300 | $ 1,300 | $ 1,300 | $ 3,900 | $ 3,900 |
Preferred dividends paid | $ 7 | $ 8 | $ 8 | $ 23 | $ 23 |
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 | ||
Preferred dividends paid | $ 0 | $ 11 | 0 | $ 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) | $ 962.65 | $ 2,475 | $ 3,437.65 | $ 2,475 | |
Preferred dividends paid | $ 10 | $ 25 | $ 0 | $ 35 | $ 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 | $ 4,625 | $ 4,625 | |
Preferred dividends paid | $ 23 | 0 | $ 23 | $ 46 | $ 46 |
Series G Noncumulative Perpetual Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Depositary shares per share | 1.00% | 1.00% | |||
Dividend paid per share (usd per share) | $ 1,579.72 | $ 1,579.72 | |||
Preferred dividends paid | $ 16 | $ 0 | $ 0 | $ 16 | $ 0 |
Other comprehensive income (l_3
Other comprehensive income (loss) - Components (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Pre-tax amount | ||||||
Total other comprehensive income (loss), Pre-tax amount | $ 583 | $ 1,114 | $ (121) | $ 1,676 | $ 656 | |
Tax (expense) benefit | ||||||
Total other comprehensive income (loss), Tax (expense) benefit | 3 | (230) | (87) | (392) | (289) | |
After-tax amount | ||||||
Total other comprehensive income (loss), net of tax | [1] | 586 | 884 | (208) | 1,284 | 367 |
Foreign currency translation | ||||||
Pre-tax amount | ||||||
Other comprehensive income (loss), Pre-tax amount | 262 | 104 | (213) | 101 | (157) | |
Total other comprehensive income (loss), Pre-tax amount | 262 | 104 | (213) | 101 | (157) | |
Tax (expense) benefit | ||||||
Other comprehensive income (loss), Tax (expense) benefit | 69 | 11 | (63) | (24) | (80) | |
Total other comprehensive income (loss), Tax (expense) benefit | 69 | 11 | (63) | (24) | (80) | |
After-tax amount | ||||||
Other comprehensive income (loss), After-tax amount | 331 | 115 | (276) | 77 | (237) | |
Total other comprehensive income (loss), net of tax | 331 | 115 | (276) | 77 | (237) | |
Unrealized gain (loss) on assets available-for-sale | ||||||
Pre-tax amount | ||||||
Other comprehensive income (loss), Pre-tax amount | 297 | 989 | 88 | 1,529 | 794 | |
Reclassification adjustment, Pre-tax amount | (9) | (9) | 1 | (27) | (7) | |
Total other comprehensive income (loss), Pre-tax amount | 288 | 980 | 89 | 1,502 | 787 | |
Tax (expense) benefit | ||||||
Other comprehensive income (loss), Tax (expense) benefit | (64) | (236) | (25) | (360) | (205) | |
Reclassification adjustment, Tax (expense) benefit | 3 | 2 | 0 | 7 | 2 | |
Total other comprehensive income (loss), Tax (expense) benefit | (61) | (234) | (25) | (353) | (203) | |
After-tax amount | ||||||
Other comprehensive income (loss), After-tax amount | 233 | 753 | 63 | 1,169 | 589 | |
Reclassification adjustment, After-tax amount | (6) | (7) | 1 | (20) | (5) | |
Total other comprehensive income (loss), net of tax | 227 | 746 | 64 | 1,149 | 584 | |
Defined benefit plans | ||||||
Pre-tax amount | ||||||
Other comprehensive income (loss), Pre-tax amount | 0 | (11) | ||||
Reclassification adjustment, Pre-tax amount | 24 | 24 | 13 | 72 | 38 | |
Total other comprehensive income (loss), Pre-tax amount | 24 | 24 | 13 | 72 | 27 | |
Tax (expense) benefit | ||||||
Other comprehensive income (loss), Tax (expense) benefit | 0 | 2 | ||||
Reclassification adjustment, Tax (expense) benefit | (4) | (5) | (3) | (15) | (8) | |
Total other comprehensive income (loss), Tax (expense) benefit | (4) | (5) | (3) | (15) | (6) | |
After-tax amount | ||||||
Other comprehensive income (loss), After-tax amount | 0 | (9) | ||||
Reclassification adjustment, After-tax amount | 20 | 19 | 10 | 57 | 30 | |
Total other comprehensive income (loss), net of tax | 20 | 19 | 10 | 57 | 21 | |
Unrealized gain (loss) on cash flow hedges | ||||||
Pre-tax amount | ||||||
Other comprehensive income (loss), Pre-tax amount | 9 | 3 | (9) | (1) | (1) | |
Reclassification adjustment, Pre-tax amount | 0 | 3 | (1) | 2 | 0 | |
Total other comprehensive income (loss), Pre-tax amount | 9 | 6 | (10) | 1 | (1) | |
Tax (expense) benefit | ||||||
Other comprehensive income (loss), Tax (expense) benefit | (1) | (1) | 4 | 1 | (2) | |
Reclassification adjustment, Tax (expense) benefit | 0 | (1) | 0 | (1) | 2 | |
Total other comprehensive income (loss), Tax (expense) benefit | (1) | (2) | 4 | 0 | 0 | |
After-tax amount | ||||||
Other comprehensive income (loss), After-tax amount | 8 | 2 | (5) | 0 | (3) | |
Reclassification adjustment, After-tax amount | 0 | 2 | (1) | 1 | 2 | |
Total other comprehensive income (loss), net of tax | 8 | 4 | (6) | 1 | (1) | |
Unrealized gain (loss) on cash flow hedges | Interest expense | ||||||
Pre-tax amount | ||||||
Reclassification adjustment, Pre-tax amount | 0 | 0 | 1 | 0 | 1 | |
Tax (expense) benefit | ||||||
Reclassification adjustment, Tax (expense) benefit | 0 | 0 | 0 | 0 | 0 | |
After-tax amount | ||||||
Reclassification adjustment, After-tax amount | 0 | 0 | 1 | 0 | 1 | |
Unrealized gain (loss) on cash flow hedges | Staff expense | ||||||
Pre-tax amount | ||||||
Reclassification adjustment, Pre-tax amount | 0 | 3 | (2) | 2 | (1) | |
Tax (expense) benefit | ||||||
Reclassification adjustment, Tax (expense) benefit | 0 | (1) | 0 | (1) | 2 | |
After-tax amount | ||||||
Reclassification adjustment, After-tax amount | $ 0 | $ 2 | $ (2) | $ 1 | $ 1 | |
[1] | Other comprehensive income (loss) attributable to The Bank of New York Mellon Corporation shareholders was $584 million for the quarter ended Sept. 30, 2020, $884 million for the quarter ended June 30, 2020, $(205) million for the quarter ended Sept. 30, 2019, $1,284 million for the nine months ended Sept. 30, 2020 and $368 million for the nine months ended Sept. 30, 2019. |
Fair value measurement - Assets
Fair value measurement - Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | $ 109,243 | $ 88,550 | |
Trading assets: | |||
Total derivatives fair value | 9,443 | 9,061 | |
Effect of master netting agreements | (5,238) | (5,819) | |
Total derivative assets | 4,205 | 3,242 | |
Trading liabilities: | |||
Total derivatives fair value | 9,776 | 9,206 | |
Effect of master netting agreements | (6,183) | (5,415) | |
Derivative liabilities | 3,593 | 3,791 | |
Long-term debt | 400 | 387 | |
Investment management funds | |||
Trading assets: | |||
Trading assets | 579 | 229 | |
Other assets | 9 | 16 | |
Total assets | 588 | 245 | |
Trading liabilities: | |||
Total liabilities | 4 | 1 | |
Interest rate contracts | |||
Trading assets: | |||
Effect of master netting agreements | (2,133) | (1,792) | |
Trading liabilities: | |||
Effect of master netting agreements | (2,551) | (1,986) | |
Foreign exchange contracts | |||
Trading assets: | |||
Effect of master netting agreements | (3,102) | (4,021) | |
Trading liabilities: | |||
Effect of master netting agreements | (3,631) | (3,428) | |
Equity contracts | |||
Trading assets: | |||
Effect of master netting agreements | (3) | (6) | |
Trading liabilities: | |||
Effect of master netting agreements | (1) | (1) | |
Agency RMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 24,733 | 27,043 | |
U.S. Treasury | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 24,733 | 15,431 | |
Sovereign debt/sovereign guaranteed | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 14,093 | 12,646 | |
Agency commercial mortgage-backed securities (“MBS”) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 9,942 | 9,417 | |
Supranational | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 7,136 | 3,709 | |
Foreign covered bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 5,841 | 4,197 | |
Collateralized loan obligations (“CLOs”) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 4,657 | 4,063 | |
U.S. government agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 3,478 | 1,949 | |
Other ABS | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 2,930 | 2,143 | |
Commercial paper/certificates of deposit (“CDs”) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 357 | ||
Non-agency RMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 1,941 | 1,233 | |
State and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 1,690 | 1,044 | |
Corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 1,030 | 853 | |
Other debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 1 | 1 | |
Not designated as hedging | |||
Trading assets: | |||
Total derivatives fair value | 9,387 | 9,040 | |
Trading liabilities: | |||
Total derivatives fair value | 8,779 | 8,599 | |
Not designated as hedging | Interest rate contracts | |||
Trading assets: | |||
Total derivatives fair value | 4,962 | 3,690 | |
Trading liabilities: | |||
Total derivatives fair value | 4,246 | 3,250 | |
Not designated as hedging | Foreign exchange contracts | |||
Trading assets: | |||
Total derivatives fair value | 4,410 | 5,331 | |
Trading liabilities: | |||
Total derivatives fair value | 4,522 | 5,340 | |
Not designated as hedging | Equity contracts | |||
Trading assets: | |||
Total derivatives fair value | 15 | 19 | |
Trading liabilities: | |||
Total derivatives fair value | 8 | 5 | |
Designated as hedging | |||
Trading assets: | |||
Total derivatives fair value | 56 | 21 | |
Trading liabilities: | |||
Total derivatives fair value | 997 | 607 | |
Designated as hedging | Interest rate contracts | |||
Trading assets: | |||
Total derivatives fair value | 0 | 0 | |
Trading liabilities: | |||
Total derivatives fair value | 803 | 350 | |
Designated as hedging | Foreign exchange contracts | |||
Trading assets: | |||
Total derivatives fair value | 56 | 21 | |
Trading liabilities: | |||
Total derivatives fair value | 194 | 257 | |
Operating segments | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | [1] | 109,243 | 88,550 |
Trading assets: | |||
Trading assets | 13,074 | 13,571 | |
Other assets | 527 | 419 | |
Trading liabilities: | |||
Long-term debt | 400 | 387 | |
Operating segments | Investment management funds | |||
Trading assets: | |||
Total assets | 588 | 245 | |
Trading liabilities: | |||
Total liabilities | 4 | 1 | |
Assets measured at fair value on a recurring basis | |||
Trading assets: | |||
Effect of master netting agreements | (5,238) | (5,819) | |
Total assets | 123,432 | 102,785 | |
Trading liabilities: | |||
Effect of master netting agreements | (6,183) | (5,415) | |
Total liabilities | 7,485 | 5,836 | |
Assets measured at fair value on a recurring basis | Level 1 | |||
Trading assets: | |||
Total assets | $ 38,268 | $ 29,576 | |
Percentage of total assets prior to netting | 30.00% | 27.00% | |
Trading liabilities: | |||
Total liabilities | $ 3,425 | $ 1,560 | |
Percentage of total liabilities prior to netting | 25.00% | 14.00% | |
Assets measured at fair value on a recurring basis | Level 2 | |||
Trading assets: | |||
Total assets | $ 90,218 | $ 78,847 | |
Percentage of total assets prior to netting | 70.00% | 73.00% | |
Trading liabilities: | |||
Total liabilities | $ 10,243 | $ 9,691 | |
Percentage of total liabilities prior to netting | 75.00% | 86.00% | |
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 | $ 512 | $ 640 | |
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 | $ 109,243 | $ 88,550 | |
Trading assets: | |||
Debt instruments | 6,231 | 5,811 | |
Equity instruments | 2,694 | 4,539 | |
Effect of master netting agreements | (5,238) | (5,819) | |
Trading assets | 13,074 | 13,571 | |
Other assets | 287 | 217 | |
Total assets | 122,844 | 102,540 | |
Trading liabilities: | |||
Total trading liabilities | 6,084 | 4,841 | |
Effect of master netting agreements | (6,183) | (5,415) | |
Long-term debt | 400 | 387 | |
Total other liabilities – derivative liabilities designated as hedging | 997 | ||
Total liabilities | 7,481 | 5,835 | |
Assets measured at fair value on a recurring basis | Operating segments | Investment management funds | |||
Trading assets: | |||
Total assets | 588 | 245 | |
Trading liabilities: | |||
Total liabilities | 4 | 1 | |
Assets measured at fair value on a recurring basis | Operating segments | Interest rate contracts | |||
Trading assets: | |||
Effect of master netting agreements | (2,133) | (1,792) | |
Trading liabilities: | |||
Effect of master netting agreements | (2,551) | (1,986) | |
Assets measured at fair value on a recurring basis | Operating segments | Foreign exchange contracts | |||
Trading assets: | |||
Effect of master netting agreements | (3,102) | (4,021) | |
Trading liabilities: | |||
Effect of master netting agreements | (3,631) | (3,428) | |
Assets measured at fair value on a recurring basis | Operating segments | Equity contracts | |||
Trading assets: | |||
Effect of master netting agreements | (3) | (6) | |
Trading liabilities: | |||
Effect of master netting agreements | (1) | (1) | |
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 | 24,733 | 27,043 | |
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 | 24,733 | 15,431 | |
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 | 14,093 | 12,646 | |
Assets measured at fair value on a recurring basis | Operating segments | Agency commercial mortgage-backed securities (“MBS”) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 9,942 | 9,417 | |
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 | 7,136 | 3,709 | |
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 | 5,841 | 4,197 | |
Assets measured at fair value on a recurring basis | Operating segments | Collateralized loan obligations (“CLOs”) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 4,657 | 4,063 | |
Assets measured at fair value on a recurring basis | Operating segments | Foreign government agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 3,970 | 2,643 | |
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 | 3,478 | 1,949 | |
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 | 2,930 | 2,143 | |
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 | 2,711 | 2,178 | |
Assets measured at fair value on a recurring basis | Operating segments | Commercial paper/certificates of deposit (“CDs”) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 357 | ||
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 | 1,941 | 1,233 | |
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 | 1,690 | 1,044 | |
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 | 1,030 | 853 | |
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 | 1 | |
Assets measured at fair value on a recurring basis | Operating segments | Not designated as hedging | |||
Trading assets: | |||
Total derivative assets | 4,149 | 3,221 | |
Trading liabilities: | |||
Effect of master netting agreements | (6,183) | ||
Derivative liabilities | 2,596 | 3,184 | |
Assets measured at fair value on a recurring basis | Operating segments | Not designated as hedging | Interest rate contracts | |||
Trading assets: | |||
Total derivative assets | 2,829 | 1,898 | |
Trading liabilities: | |||
Derivative liabilities | 1,695 | 1,264 | |
Assets measured at fair value on a recurring basis | Operating segments | Not designated as hedging | Foreign exchange contracts | |||
Trading assets: | |||
Total derivative assets | 1,308 | 1,310 | |
Trading liabilities: | |||
Derivative liabilities | 891 | 1,912 | |
Assets measured at fair value on a recurring basis | Operating segments | Not designated as hedging | Equity contracts | |||
Trading assets: | |||
Total derivative assets | 12 | 13 | |
Trading liabilities: | |||
Derivative liabilities | 10 | 8 | |
Assets measured at fair value on a recurring basis | Operating segments | Designated as hedging | |||
Trading assets: | |||
Total derivative assets | 56 | 21 | |
Trading liabilities: | |||
Total other liabilities – derivative liabilities designated as hedging | 607 | ||
Assets measured at fair value on a recurring basis | Operating segments | Designated as hedging | Interest rate contracts | |||
Trading liabilities: | |||
Derivative liabilities | 803 | 350 | |
Assets measured at fair value on a recurring basis | Operating segments | Designated as hedging | Foreign exchange contracts | |||
Trading assets: | |||
Total derivative assets | 56 | 21 | |
Trading liabilities: | |||
Derivative liabilities | 194 | 257 | |
Assets measured at fair value on a recurring basis | Operating segments | Debt instruments | |||
Trading liabilities: | |||
Total trading liabilities | 3,462 | 1,584 | |
Assets measured at fair value on a recurring basis | Operating segments | Equity instruments | |||
Trading liabilities: | |||
Total trading liabilities | 26 | 73 | |
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 | 31,912 | 23,215 | |
Trading assets: | |||
Debt instruments | 3,181 | 1,568 | |
Equity instruments | 2,694 | 4,539 | |
Trading assets | 5,883 | 6,111 | |
Other assets | 113 | 38 | |
Total assets | $ 37,908 | $ 29,364 | |
Percentage of total assets prior to netting | 30.00% | 27.00% | |
Trading liabilities: | |||
Total trading liabilities | $ 3,425 | $ 1,559 | |
Long-term debt | 0 | 0 | |
Total other liabilities – derivative liabilities designated as hedging | 0 | ||
Total liabilities | $ 3,425 | $ 1,559 | |
Percentage of total liabilities prior to netting | 25.00% | 14.00% | |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Investment management funds | |||
Trading assets: | |||
Total assets | $ 360 | $ 212 | |
Trading liabilities: | |||
Total liabilities | 0 | 1 | |
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 | 24,733 | 15,431 | |
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 | 7,179 | 7,784 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Agency commercial mortgage-backed securities (“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 | 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 | Collateralized loan obligations (“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 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 | 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 | Commercial paper/certificates of deposit (“CDs”) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 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 | 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 | 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 derivatives fair value | 8 | 4 | |
Trading liabilities: | |||
Total derivatives fair value | 3 | 9 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Not designated as hedging | Interest rate contracts | |||
Trading assets: | |||
Total derivatives fair value | 4 | 4 | |
Trading liabilities: | |||
Total derivatives fair value | 3 | 6 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Not designated as hedging | Foreign exchange contracts | |||
Trading assets: | |||
Total derivatives fair value | 0 | 0 | |
Trading liabilities: | |||
Total derivatives fair value | 0 | 0 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Not designated as hedging | Equity contracts | |||
Trading assets: | |||
Total derivatives fair value | 4 | 0 | |
Trading liabilities: | |||
Total derivatives fair value | 0 | 3 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Designated as hedging | |||
Trading assets: | |||
Total derivatives fair value | 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 liabilities: | |||
Total derivatives fair value | 0 | 0 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Designated as hedging | Foreign exchange contracts | |||
Trading assets: | |||
Total derivatives fair value | 0 | 0 | |
Trading liabilities: | |||
Total derivatives fair value | 0 | 0 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Debt instruments | |||
Trading liabilities: | |||
Total trading liabilities | 3,396 | 1,477 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 1 | Equity instruments | |||
Trading liabilities: | |||
Total trading liabilities | 26 | 73 | |
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 | 77,331 | 65,335 | |
Trading assets: | |||
Debt instruments | 3,050 | 4,243 | |
Equity instruments | 0 | 0 | |
Trading assets | 12,429 | 13,279 | |
Other assets | 174 | 179 | |
Total assets | $ 89,990 | $ 78,814 | |
Percentage of total assets prior to netting | 70.00% | 73.00% | |
Trading liabilities: | |||
Total trading liabilities | $ 8,842 | $ 8,697 | |
Long-term debt | 400 | 387 | |
Total other liabilities – derivative liabilities designated as hedging | 997 | ||
Total liabilities | $ 10,239 | $ 9,691 | |
Percentage of total liabilities prior to netting | 75.00% | 86.00% | |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Investment management funds | |||
Trading assets: | |||
Total assets | $ 228 | $ 33 | |
Trading liabilities: | |||
Total liabilities | 4 | 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 | 24,733 | 27,043 | |
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 | 6,914 | 4,862 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Agency commercial mortgage-backed securities (“MBS”) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 9,942 | 9,417 | |
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 | 7,136 | 3,709 | |
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 | 5,841 | 4,197 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Collateralized loan obligations (“CLOs”) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 4,657 | 4,063 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Foreign government agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 3,970 | 2,643 | |
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 | 3,478 | 1,949 | |
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 | 2,930 | 2,143 | |
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 | 2,711 | 2,178 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Commercial paper/certificates of deposit (“CDs”) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 357 | ||
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 | 1,941 | 1,233 | |
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 | 1,690 | 1,044 | |
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 | 1,030 | 853 | |
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 | 1 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Not designated as hedging | |||
Trading assets: | |||
Total derivatives fair value | 9,379 | 9,036 | |
Trading liabilities: | |||
Total derivatives fair value | 8,776 | 8,590 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Not designated as hedging | Interest rate contracts | |||
Trading assets: | |||
Total derivatives fair value | 4,958 | 3,686 | |
Trading liabilities: | |||
Total derivatives fair value | 4,243 | 3,244 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Not designated as hedging | Foreign exchange contracts | |||
Trading assets: | |||
Total derivatives fair value | 4,410 | 5,331 | |
Trading liabilities: | |||
Total derivatives fair value | 4,522 | 5,340 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Not designated as hedging | Equity contracts | |||
Trading assets: | |||
Total derivatives fair value | 11 | 19 | |
Trading liabilities: | |||
Total derivatives fair value | 11 | 6 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Designated as hedging | |||
Trading assets: | |||
Total derivatives fair value | 56 | 21 | |
Trading liabilities: | |||
Total other liabilities – derivative liabilities designated as hedging | 607 | ||
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Designated as hedging | Interest rate contracts | |||
Trading liabilities: | |||
Total derivatives fair value | 803 | 350 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Designated as hedging | Foreign exchange contracts | |||
Trading assets: | |||
Total derivatives fair value | 56 | 21 | |
Trading liabilities: | |||
Total derivatives fair value | 194 | 257 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 2 | Debt instruments | |||
Trading liabilities: | |||
Total trading liabilities | 66 | 107 | |
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 mortgage-backed securities (“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 | 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 | Collateralized loan obligations (“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 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 | 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 | Commercial paper/certificates of deposit (“CDs”) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Available-for-sale | 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 | 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 | 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 derivatives fair value | 0 | 0 | |
Trading liabilities: | |||
Total derivatives fair value | 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 derivatives fair value | 0 | 0 | |
Trading liabilities: | |||
Total derivatives fair value | 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 derivatives fair value | 0 | 0 | |
Trading liabilities: | |||
Total derivatives fair value | 0 | 0 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Not designated as hedging | Equity contracts | |||
Trading assets: | |||
Total derivatives fair value | 0 | 0 | |
Trading liabilities: | |||
Total derivatives fair value | 0 | 0 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Designated as hedging | |||
Trading assets: | |||
Total derivatives fair value | 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 liabilities: | |||
Total derivatives fair value | 0 | 0 | |
Assets measured at fair value on a recurring basis | Operating segments | Level 3 | Designated as hedging | Foreign exchange contracts | |||
Trading assets: | |||
Total derivatives fair value | 0 | 0 | |
Trading liabilities: | |||
Total derivatives fair value | 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 | $ 184 | $ 181 | |
[1] | In the first quarter of 2020, we adopted new accounting guidance included in ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, on a prospective basis. See Note 2 of the Notes to Consolidated Financial Statements for additional information. |
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 | Sep. 30, 2020 | Dec. 31, 2019 |
Non-agency RMBS | Origination in 2004 and Earlier, 2005, 2006 and 2007 through 2020 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 512 | $ 640 |
Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 1,941 | $ 1,233 |
Non-agency RMBS | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 61.00% | 25.00% |
Non-agency RMBS | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 4.00% | 9.00% |
Non-agency RMBS | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 2.00% | 3.00% |
Non-agency RMBS | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 33.00% | 63.00% |
Non-agency RMBS | 2007-2020 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 1,311 | $ 464 |
Non-agency RMBS | 2007-2020 | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 88.00% | 55.00% |
Non-agency RMBS | 2007-2020 | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 1.00% |
Non-agency RMBS | 2007-2020 | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Non-agency RMBS | 2007-2020 | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 12.00% | 44.00% |
Non-agency RMBS | 2006 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 244 | $ 291 |
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 | 23.00% | 21.00% |
Non-agency RMBS | 2006 | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Non-agency RMBS | 2006 | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 77.00% | 79.00% |
Non-agency RMBS | 2005 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 243 | $ 305 |
Non-agency RMBS | 2005 | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 4.00% | 5.00% |
Non-agency RMBS | 2005 | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 2.00% |
Non-agency RMBS | 2005 | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 7.00% | 8.00% |
Non-agency RMBS | 2005 | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 89.00% | 85.00% |
Non-agency RMBS | 2004 and earlier | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 143 | $ 173 |
Non-agency RMBS | 2004 and earlier | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 20.00% | 22.00% |
Non-agency RMBS | 2004 and earlier | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 9.00% | 24.00% |
Non-agency RMBS | 2004 and earlier | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 12.00% | 4.00% |
Non-agency RMBS | 2004 and earlier | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 59.00% | 50.00% |
Non-agency commercial MBS | 2009-2020 | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 2,711 | $ 2,178 |
Non-agency commercial MBS | 2009-2020 | AAA/ AA- | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 98.00% |
Non-agency commercial MBS | 2009-2020 | A/ A- | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 2.00% |
Non-agency commercial MBS | 2009-2020 | BBB/ BBB- | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Non-agency commercial MBS | 2009-2020 | 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 | $ 5,841 | $ 4,197 |
Foreign covered bonds | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 99.00% | 100.00% |
Foreign covered bonds | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 1.00% | 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 | $ 2,368 | $ 1,798 |
Foreign covered bonds | Canada | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 98.00% | 100.00% |
Foreign covered bonds | Canada | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 2.00% | 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 | UK | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 1,130 | $ 984 |
Foreign covered bonds | UK | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Foreign covered bonds | UK | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | UK | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | UK | 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 | $ 775 | $ 431 |
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 | Norway | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 609 | $ 287 |
Foreign covered bonds | Norway | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Foreign covered bonds | Norway | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | Norway | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | Norway | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | Germany | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 479 | $ 357 |
Foreign covered bonds | Germany | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Foreign covered bonds | Germany | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | Germany | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign covered bonds | Germany | 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 | $ 480 | $ 340 |
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 | $ 14,093 | $ 12,646 |
Sovereign Debt | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 65.00% | 73.00% |
Sovereign Debt | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 7.00% | 5.00% |
Sovereign Debt | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 27.00% | 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 | $ 732 | $ 271 |
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 | UK | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 2,037 | $ 3,318 |
Sovereign Debt | UK | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Sovereign Debt | UK | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | UK | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | UK | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Germany | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 2,155 | $ 1,997 |
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 | $ 1,846 | $ 1,272 |
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 | $ 1,835 | $ 1,453 |
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 | 5.00% | 6.00% |
Sovereign Debt | Spain | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 95.00% | 94.00% |
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 | $ 1,974 | $ 1,260 |
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 | Singapore | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 949 | $ 742 |
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 | $ 522 | $ 301 |
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 | Netherlands | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 471 | $ 791 |
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 | Japan | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 437 | $ 274 |
Sovereign Debt | Japan | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Japan | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Sovereign Debt | Japan | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Japan | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Belgium | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 253 | $ 79 |
Sovereign Debt | Belgium | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Sovereign Debt | Belgium | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Belgium | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Belgium | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Austria | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 294 | $ 240 |
Sovereign Debt | Austria | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Sovereign Debt | Austria | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Austria | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Sovereign Debt | Austria | 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 | $ 206 | $ 411 |
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 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 382 | $ 237 |
Sovereign Debt | Other | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 51.00% | 39.00% |
Sovereign Debt | Other | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 4.00% |
Sovereign Debt | Other | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 18.00% | 0.00% |
Sovereign Debt | Other | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 31.00% | 57.00% |
Foreign government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 3,970 | $ 2,643 |
Foreign government agencies | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 94.00% | 95.00% |
Foreign government agencies | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 6.00% | 5.00% |
Foreign government agencies | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | Canada | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 442 | $ 71 |
Foreign government agencies | Canada | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 72.00% | 0.00% |
Foreign government agencies | Canada | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 28.00% | 100.00% |
Foreign government agencies | Canada | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | Canada | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | Germany | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 1,483 | $ 1,131 |
Foreign government agencies | Germany | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Foreign government agencies | Germany | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | Germany | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | Germany | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | France | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 293 | $ 42 |
Foreign government agencies | France | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Foreign government agencies | France | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | France | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | France | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | Netherlands | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 800 | $ 678 |
Foreign government agencies | Netherlands | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Foreign government agencies | Netherlands | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | Netherlands | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | Netherlands | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 430 | $ 274 |
Foreign government agencies | Other | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 77.00% | 79.00% |
Foreign government agencies | Other | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 23.00% | 21.00% |
Foreign government agencies | Other | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | Other | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | Sweden | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 276 | $ 202 |
Foreign government agencies | Sweden | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Foreign government agencies | Sweden | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | Sweden | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | Sweden | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | Finland | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 246 | $ 245 |
Foreign government agencies | Finland | AAA/ AA- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 100.00% | 100.00% |
Foreign government agencies | Finland | A/ A- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | Finland | BBB/ BBB- | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Foreign government agencies | Finland | BB and lower | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings | 0.00% | 0.00% |
Carrying amount | Sovereign debt/sovereign guaranteed | Sovereign debt/sovereign guaranteed | Brazil | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total carrying value | $ 119 | $ 134 |
Fair value measurement - Asse_2
Fair value measurement - Assets on Nonrecurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Decrease in fair value of loans of underlying collateral (less than) | $ 1 | $ 1 |
Measured at fair value on a nonrecurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 52 | 58 |
Other assets | 113 | 64 |
Total assets | 165 | 122 |
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 | 52 | 58 |
Other assets | 113 | 64 |
Total assets | 165 | 122 |
Measured at fair value on a nonrecurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Other assets | 0 | 0 |
Total assets | $ 0 | $ 0 |
Fair value measurement - Financ
Fair value measurement - Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Securities held-to-maturity | $ 47,458 | $ 34,805 |
Liabilities: | ||
Long-term debt | 400 | 387 |
Estimated fair value | ||
Assets: | ||
Interest-bearing deposits with the Federal Reserve and other central banks | 106,185 | 95,042 |
Interest-bearing deposits with banks | 19,037 | 14,832 |
Federal funds sold and securities purchased under resale agreements | 29,647 | 30,182 |
Securities held-to-maturity | 47,458 | 34,805 |
Loans | 54,475 | 54,194 |
Other assets, fair value | 5,225 | 6,063 |
Total assets | 262,027 | 235,118 |
Liabilities: | ||
Noninterest-bearing deposits | 79,470 | 57,630 |
Interest-bearing deposits | 216,499 | 200,846 |
Federal funds purchased and securities sold under repurchase agreements | 15,907 | 11,401 |
Payables to customers and broker-dealers | 23,514 | 18,758 |
Commercial paper | 671 | 3,959 |
Borrowings | 607 | 917 |
Long-term debt | 27,457 | 27,858 |
Total liabilities | 364,125 | 321,369 |
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 | 4,415 | 4,630 |
Loans | 0 | 0 |
Other assets, fair value | 4,104 | 4,830 |
Total assets | 8,519 | 9,460 |
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 | 106,185 | 95,042 |
Interest-bearing deposits with banks | 19,037 | 14,832 |
Federal funds sold and securities purchased under resale agreements | 29,647 | 30,182 |
Securities held-to-maturity | 43,043 | 30,175 |
Loans | 54,475 | 54,194 |
Other assets, fair value | 1,121 | 1,233 |
Total assets | 253,508 | 225,658 |
Liabilities: | ||
Noninterest-bearing deposits | 79,470 | 57,630 |
Interest-bearing deposits | 216,499 | 200,846 |
Federal funds purchased and securities sold under repurchase agreements | 15,907 | 11,401 |
Payables to customers and broker-dealers | 23,514 | 18,758 |
Commercial paper | 671 | 3,959 |
Borrowings | 607 | 917 |
Long-term debt | 27,457 | 27,858 |
Total liabilities | 364,125 | 321,369 |
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 assets, fair value | 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 | 106,185 | 95,042 |
Interest-bearing deposits with banks | 19,027 | 14,811 |
Federal funds sold and securities purchased under resale agreements | 29,647 | 30,182 |
Securities held-to-maturity | 46,096 | 34,483 |
Loans | 54,088 | 53,718 |
Other assets, fair value | 5,225 | 6,063 |
Total assets | 260,268 | 234,299 |
Liabilities: | ||
Noninterest-bearing deposits | 79,470 | 57,630 |
Interest-bearing deposits | 216,842 | 201,836 |
Federal funds purchased and securities sold under repurchase agreements | 15,907 | 11,401 |
Payables to customers and broker-dealers | 23,514 | 18,758 |
Commercial paper | 671 | 3,959 |
Borrowings | 607 | 917 |
Long-term debt | 25,721 | 27,114 |
Total liabilities | $ 362,732 | $ 321,615 |
Fair value option - Assets and
Fair value option - Assets and Liabilities (Details) - Investment Management funds - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets of consolidated investment management funds: | ||
Trading assets | $ 579 | $ 229 |
Other assets | 9 | 16 |
Total assets | 588 | 245 |
Liabilities of consolidated investment management funds: | ||
Other liabilities | 4 | 1 |
Total liabilities | $ 4 | $ 1 |
Fair value option - Narrative (
Fair value option - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Fair value option of long-term debt | $ 240 | |
Long-term debt, fair value | $ 400 | $ 387 |
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 | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
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 | $ (1) | $ (2) | $ (3) | $ (13) | $ (15) |
Derivative instruments - Narrat
Derivative instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
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 | $ 179,000,000 | |||||
Gain or (loss) recognized in income on derivatives | 10,000,000 | $ (1,000,000) | $ (5,000,000) | $ (6,000,000) | $ (15,000,000) | |
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 | 31,000,000 | $ 31,000,000 | $ 63,000,000 | |||
Foreign exchange contracts | Net investment hedging | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedged financial instruments, notional amount of derivative | 7,900,000,000 | 7,900,000,000 | ||||
Foreign exchange contracts | Forecasted Foreign Currency | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Amount of pre-tax gain (loss) to be reclassified in the next 12 months from AOCI to earnings | 5,000,000 | |||||
Foreign exchange contracts | Forecasted Foreign Currency | Cash flow hedges | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedged financial instruments, notional amount of derivative | 319,000,000 | $ 319,000,000 | ||||
Original maturities, maximum, of hedged instruments | 15 months | |||||
Pre-tax gain (loss) recognized in OCI related to cash flow hedges | $ 5,000,000 | |||||
Securities available-for-sale | Interest rate swap | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedged financial instruments | 14,500,000,000 | 14,500,000,000 | ||||
Hedged financial instruments, notional amount of derivative | 14,500,000,000 | 14,500,000,000 | ||||
Securities available-for-sale | Foreign currency forward | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedged financial instruments | 140,000,000 | 140,000,000 | ||||
Hedged financial instruments, notional amount of derivative | 140,000,000 | 140,000,000 | ||||
Long-term debt | Interest rate swap | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedged financial instruments | 13,900,000,000 | 13,900,000,000 | ||||
Hedged financial instruments, notional amount of derivative | 13,900,000,000 | $ 13,900,000,000 | ||||
Original maturities, minimum, of hedged instruments | 5 years | |||||
Original maturities, maximum, of hedged instruments | 30 years | |||||
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 | $ 12,000,000 | $ 28,000,000 | $ (1,000,000) | $ 23,000,000 |
Derivative instruments - Gains
Derivative instruments - Gains (Losses) Related to Hedging Derivative Portfolio Recognized in the Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) recognized in the consolidated income statement due to fair value and cash flow hedging relationships | $ 10 | $ (1) | $ (5) | $ (6) | $ (15) |
Interest rate contracts | Interest expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) on cash flow hedges | 0 | 0 | (1) | 0 | (1) |
Interest rate contracts | Long-term debt | Interest expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) recognized on derivatives | (68) | 47 | 146 | 693 | 631 |
Gain or (loss) recognized on hedged item | 66 | (49) | (145) | (691) | (627) |
Interest rate contracts | Securities available-for-sale | Interest revenue | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) recognized on derivatives | 150 | 19 | (250) | (864) | (1,119) |
Gain or (loss) recognized on hedged item | (140) | (15) | 243 | 856 | 1,099 |
FX contracts | Staff expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) on cash flow hedges | 0 | (3) | 2 | (2) | 1 |
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 | 1 | 1 | 1 |
FX contracts | Securities available-for-sale | Other revenue | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) recognized on derivatives | 1 | (5) | 2 | (11) | 3 |
Gain or (loss) recognized on hedged item | $ 1 | $ 5 | $ (2) | $ 13 | $ (2) |
Derivative instruments - Impact
Derivative instruments - Impact of Hedging Derivatives Used in Net Investment Hedging Relationships (Details) - FX contracts - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) recognized in accumulated OCI on derivatives | $ (289) | $ (45) | $ 252 | $ 103 | $ 322 |
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) - Fair value hedging - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Long-term debt | ||
Derivative [Line Items] | ||
Carrying amount of hedged asset or liability, Long-term debt | $ 14,889,000,000 | $ 13,945,000,000 |
Hedged liability, fair value hedge, cumulative increase (decrease) | 870,000,000 | 116,000,000 |
Hedged liability, discontinued fair value hedge, cumulative decrease | (136,000,000) | (200,000,000) |
Securities available-for-sale | ||
Derivative [Line Items] | ||
Carrying amount of hedged asset or liability, Available-for-sale securities | 14,629,000,000 | 13,792,000,000 |
Hedge accounting basis adjustment increase (decrease), Available-for-sale securities | 1,650,000,000 | 687,000,000 |
Hedge accounting basis adjustment increase (decrease), discontinued hedges | 187,000,000 | 53,000,000 |
Not designated as hedging | Securities available-for-sale | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Hedged financial instruments, carrying amount | $ 140,000,000 | $ 142,000,000 |
Derivative instruments - Impa_2
Derivative instruments - Impact of Derivative Instruments on the Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Asset derivatives fair value | ||
Total derivatives fair value | $ 9,443 | $ 9,061 |
Effect of master netting agreements | (5,238) | (5,819) |
Fair value after effect of master netting agreements | 4,205 | 3,242 |
Liability derivatives fair value | ||
Total derivatives fair value | 9,776 | 9,206 |
Effect of master netting agreements | (6,183) | (5,415) |
Fair value after effect of master netting agreements | 3,593 | 3,791 |
Derivative asset, collateral, obligation to return cash, offset | 675 | 1,022 |
Derivative liability, collateral, right to reclaim cash, offset | 1,620 | 618 |
Interest rate contracts | ||
Asset derivatives fair value | ||
Effect of master netting agreements | (2,133) | (1,792) |
Liability derivatives fair value | ||
Effect of master netting agreements | (2,551) | (1,986) |
Foreign exchange contracts | ||
Asset derivatives fair value | ||
Effect of master netting agreements | (3,102) | (4,021) |
Liability derivatives fair value | ||
Effect of master netting agreements | (3,631) | (3,428) |
Equity contracts | ||
Asset derivatives fair value | ||
Effect of master netting agreements | (3) | (6) |
Liability derivatives fair value | ||
Effect of master netting agreements | (1) | (1) |
Designated as hedging | ||
Asset derivatives fair value | ||
Total derivatives fair value | 56 | 21 |
Liability derivatives fair value | ||
Total derivatives fair value | 997 | 607 |
Designated as hedging | Interest rate contracts | ||
Notional value | ||
Notional amount of hedge | 28,441 | 28,365 |
Asset derivatives fair value | ||
Total derivatives fair value | 0 | 0 |
Liability derivatives fair value | ||
Total derivatives fair value | 803 | 350 |
Designated as hedging | Foreign exchange contracts | ||
Notional value | ||
Notional amount of hedge | 8,369 | 8,390 |
Asset derivatives fair value | ||
Total derivatives fair value | 56 | 21 |
Liability derivatives fair value | ||
Total derivatives fair value | 194 | 257 |
Not designated as hedging | ||
Asset derivatives fair value | ||
Total derivatives fair value | 9,387 | 9,040 |
Liability derivatives fair value | ||
Total derivatives fair value | 8,779 | 8,599 |
Not designated as hedging | Interest rate contracts | ||
Notional value | ||
Notional amount of hedge | 206,771 | 306,790 |
Asset derivatives fair value | ||
Total derivatives fair value | 4,962 | 3,690 |
Liability derivatives fair value | ||
Total derivatives fair value | 4,246 | 3,250 |
Not designated as hedging | Foreign exchange contracts | ||
Notional value | ||
Notional amount of hedge | 753,812 | 848,961 |
Asset derivatives fair value | ||
Total derivatives fair value | 4,410 | 5,331 |
Liability derivatives fair value | ||
Total derivatives fair value | 4,522 | 5,340 |
Not designated as hedging | Equity contracts | ||
Notional value | ||
Notional amount of hedge | 2,241 | 3,189 |
Asset derivatives fair value | ||
Total derivatives fair value | 15 | 19 |
Liability derivatives fair value | ||
Total derivatives fair value | 8 | 5 |
Not designated as hedging | Credit contracts | ||
Notional value | ||
Notional amount of hedge | 165 | 165 |
Asset derivatives fair value | ||
Total derivatives fair value | 0 | 0 |
Liability derivatives fair value | ||
Total derivatives fair value | $ 3 | $ 4 |
Derivative instruments - Revenu
Derivative instruments - Revenue from Foreign Exchange and Other Trading (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Foreign exchange | $ 151 | $ 174 | $ 129 | $ 578 | $ 439 |
Other trading (loss) revenue | (14) | (8) | 21 | 44 | 47 |
Total foreign exchange and other trading revenue | $ 137 | $ 166 | $ 150 | $ 622 | $ 486 |
Derivative instruments - Contra
Derivative instruments - Contracts Falling under Early Termination Provisions (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Credit Derivatives [Line Items] | ||
Aggregate fair value of OTC derivatives in net liability positions | $ 5,958 | $ 3,442 |
Collateral posted | 6,384 | 3,671 |
A3 | A- | ||
Credit Derivatives [Line Items] | ||
Aggregate fair value of OTC derivatives in net liability positions | 10 | 56 |
Baa2 | BBB | ||
Credit Derivatives [Line Items] | ||
Aggregate fair value of OTC derivatives in net liability positions | 565 | 608 |
Ba1 | BB plus | ||
Credit Derivatives [Line Items] | ||
Aggregate fair value of OTC derivatives in net liability positions | $ 3,113 | $ 2,084 |
Derivative instruments - Offset
Derivative instruments - Offsetting (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative Asset | ||
Derivatives subject to netting arrangements, Gross assets recognized | $ 7,234 | $ 7,264 |
Total derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 5,238 | 5,819 |
Derivatives subject to netting arrangements, Net assets recognized in the balance sheet | 1,996 | 1,445 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 383 | 251 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Derivative assets subject to netting arrangements, Net amount | 1,613 | 1,194 |
Total derivatives not subject to netting arrangements | 2,209 | 1,797 |
Total derivatives, Gross assets recognized | 9,443 | 9,061 |
Fair value after effect of master netting agreements | 4,205 | 3,242 |
Total derivatives, Net amount | 3,822 | 2,991 |
Reverse repurchase agreements, Gross assets recognized | 72,507 | 112,355 |
Reverse repurchase agreements, Gross amounts offset in the balance sheet | 54,629 | 93,794 |
Reverse repurchase agreements, Net assets recognized on the balance sheet | 17,878 | 18,561 |
Reverse repurchase agreements, Gross amounts not offset in the balance sheet, Financial instruments | 17,852 | 18,554 |
Reverse repurchase agreements, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Reverse repurchase agreements, Net amount | 26 | 7 |
Securities borrowing, Gross assets recognized | 11,769 | 11,621 |
Securities borrowing, Net assets recognized on the balance sheet | 11,769 | 11,621 |
Securities borrowing, Gross amounts not offset in the balance sheet, Financial instruments | 11,216 | 11,278 |
Securities borrowing, Net amount | 553 | 343 |
Total, Gross assets recognized | 93,719 | 133,037 |
Total, Gross amounts offset in the balance sheet | 59,867 | 99,613 |
Total, Net assets recognized on the balance sheet | 33,852 | 33,424 |
Total, Gross amounts not offset in the balance sheet, Financial instruments | 29,451 | 30,083 |
Total, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Total, Net amount | 4,401 | 3,341 |
Derivative Liability | ||
Derivatives subject to netting arrangements, Gross liabilities recognized | 9,337 | 8,428 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 6,183 | 5,415 |
Derivatives subject to netting arrangements, Net liabilities recognized in the balance sheet | 3,154 | 3,013 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 2,701 | 1,615 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Derivative liabilities subject to netting arrangements, Net amount | 453 | 1,398 |
Total derivatives not subject to netting arrangements | 439 | 778 |
Total derivatives, Gross liabilities recognized | 9,776 | 9,206 |
Fair value after effect of master netting agreements | 3,593 | 3,791 |
Total derivatives, Net amount | 892 | 2,176 |
Repurchase agreements, Gross liabilities recognized | 69,494 | 104,451 |
Repurchase agreements, Gross amounts offset in the balance sheet | 54,629 | 93,794 |
Repurchase agreements, Net liabilities recognized on the balance sheet | 14,865 | 10,657 |
Repurchase agreements, Gross amounts not offset in the balance sheet, Financial instruments | 14,863 | 10,657 |
Repurchase agreements, Gross amounts not offset in the balance sheet, Cash collateral pledged | 1 | 0 |
Repurchase agreements, Net amount | 1 | 0 |
Securities lending, Gross liabilities recognized | 1,002 | 718 |
Securities lending, Net liabilities recognized on the balance sheet | 1,002 | 718 |
Securities lending, Gross amounts not offset in the balance sheet, Financial instruments | 961 | 694 |
Securities lending, Net amount | 41 | 24 |
Total, Gross liabilities recognized | 80,272 | 114,375 |
Total, Gross amounts offset in the balance sheet | 60,812 | 99,209 |
Total, Net liabilities recognized on the balance sheet | 19,460 | 15,166 |
Total, Gross amounts not offset in the balance sheet, Financial instruments | 18,525 | 12,966 |
Total, Gross amounts not offset in the balance sheet, Cash collateral pledged | 1 | 0 |
Total, Net amount | 934 | 2,200 |
Interest rate contracts | ||
Derivative Asset | ||
Derivatives subject to netting arrangements, Gross assets recognized | 3,183 | 2,394 |
Total derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 2,133 | 1,792 |
Derivatives subject to netting arrangements, Net assets recognized in the balance sheet | 1,050 | 602 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 350 | 207 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Derivative assets subject to netting arrangements, Net amount | 700 | 395 |
Derivative Liability | ||
Derivatives subject to netting arrangements, Gross liabilities recognized | 5,035 | 3,550 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 2,551 | 1,986 |
Derivatives subject to netting arrangements, Net liabilities recognized in the balance sheet | 2,484 | 1,564 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 2,477 | 1,539 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Derivative liabilities subject to netting arrangements, Net amount | 7 | 25 |
Foreign exchange contracts | ||
Derivative Asset | ||
Derivatives subject to netting arrangements, Gross assets recognized | 4,043 | 4,861 |
Total derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 3,102 | 4,021 |
Derivatives subject to netting arrangements, Net assets recognized in the balance sheet | 941 | 840 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 33 | 44 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Derivative assets subject to netting arrangements, Net amount | 908 | 796 |
Derivative Liability | ||
Derivatives subject to netting arrangements, Gross liabilities recognized | 4,294 | 4,873 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 3,631 | 3,428 |
Derivatives subject to netting arrangements, Net liabilities recognized in the balance sheet | 663 | 1,445 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 224 | 74 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Derivative liabilities subject to netting arrangements, Net amount | 439 | 1,371 |
Equity and other contracts | ||
Derivative Asset | ||
Derivatives subject to netting arrangements, Gross assets recognized | 8 | 9 |
Total derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 3 | 6 |
Derivatives subject to netting arrangements, Net assets recognized in the balance sheet | 5 | 3 |
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 | 5 | 3 |
Derivative Liability | ||
Derivatives subject to netting arrangements, Gross liabilities recognized | 8 | 5 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 1 | 1 |
Derivatives subject to netting arrangements, Net liabilities recognized in the balance sheet | 7 | 4 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 0 | 2 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Derivative liabilities subject to netting arrangements, Net amount | $ 7 | $ 2 |
Derivative instruments - Secure
Derivative instruments - Secured Borrowings (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | $ 69,494 | $ 104,451 |
Securities lending | 1,002 | 718 |
Total borrowings | 70,496 | 105,169 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 64,323 | 99,953 |
Securities lending | 1,002 | 718 |
Total borrowings | 65,325 | 100,671 |
Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 875 | 1,323 |
Securities lending | 0 | 0 |
Total borrowings | 875 | 1,323 |
30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 4,296 | 3,175 |
Securities lending | 0 | 0 |
Total borrowings | 4,296 | 3,175 |
U.S. Treasury | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 60,350 | 94,798 |
U.S. Treasury | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 60,350 | 94,788 |
U.S. Treasury | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 10 |
U.S. Treasury | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Agency RMBS | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 3,590 | 5,008 |
Securities lending | 180 | 160 |
Agency RMBS | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 2,913 | 4,234 |
Securities lending | 180 | 160 |
Agency RMBS | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 675 | 774 |
Securities lending | 0 | 0 |
Agency RMBS | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 2 | 0 |
Securities lending | 0 | 0 |
Corporate bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,728 | 2,119 |
Corporate bonds | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 232 | 266 |
Corporate bonds | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 64 | 236 |
Corporate bonds | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,432 | 1,617 |
Sovereign debt/sovereign guaranteed | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,279 | 22 |
Sovereign debt/sovereign guaranteed | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 128 | 0 |
Sovereign debt/sovereign guaranteed | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 22 |
Sovereign debt/sovereign guaranteed | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,151 | 0 |
State and political subdivisions | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 892 | 1,281 |
State and political subdivisions | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 43 | 38 |
State and political subdivisions | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 39 | 166 |
State and political subdivisions | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 810 | 1,077 |
U.S. government agencies | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 610 | 610 |
Securities lending | 1 | 19 |
U.S. government agencies | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 610 | 594 |
Securities lending | 1 | 19 |
U.S. government agencies | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 16 |
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 |
Other debt securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 277 | 4 |
Securities lending | 49 | 41 |
Other debt securities | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 47 | 2 |
Securities lending | 49 | 41 |
Other debt securities | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 44 | 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 | 186 | 2 |
Securities lending | 0 | 0 |
Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 768 | 609 |
Securities lending | 772 | 498 |
Equity securities | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 31 |
Securities lending | 772 | 498 |
Equity securities | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 53 | 99 |
Securities lending | 0 | 0 |
Equity securities | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 715 | 479 |
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 | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Securities lending indemnifications, joint venture | $ 58,000 | $ 57,000 |
Invested in reverse repurchase agreements | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Cash collateral invested in indemnified repurchase agreements | 43,000 | 37,000 |
Lending commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit risks | 47,658 | 49,119 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit risks | 2,175 | 2,298 |
Off-balance sheet credit risks participations | 145 | 146 |
Commercial letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit risks | 87 | 74 |
Securities lending indemnifications | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit risks | $ 414,324 | $ 408,378 |
Commitments and contingent li_4
Commitments and contingent liabilities - Narrative (Details) | Sep. 09, 2020USD ($) | Dec. 19, 2019claim | Dec. 17, 2015lawsuit | Sep. 30, 2020USD ($)claim | Dec. 31, 2019USD ($) | Dec. 31, 2009claim |
Commitments and Contingencies Disclosure [Line Items] | ||||||
Lending commitment maturing in less than one year | $ 31,000,000,000 | |||||
Lending commitment maturing in one to five years | 16,300,000,000 | |||||
Lending commitment maturing over five years | $ 336,000,000 | |||||
Collateralization percentage generally required for a securities lending transaction with indemnification against broker default | 102.00% | |||||
Securities lending indemnifications, secured amount of collateral | $ 435,000,000,000 | $ 428,000,000,000 | ||||
Securities lending indemnifications, joint venture | 58,000,000,000 | 57,000,000,000 | ||||
Securities lending indemnifications, collateral joint venture | $ 61,000,000,000 | 61,000,000,000 | ||||
Matters Related to R. Allen Stanford | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Number of lawsuits or class actions pending | claim | 2 | |||||
Number of claims dismissed | claim | 6 | |||||
Number of lawsuits filed | claim | 13 | |||||
Brazilian Postalis Litigation | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Number of lawsuits filed | lawsuit | 3 | |||||
Loss contingency, damages awarded, value | $ 41,700,000 | |||||
Loss contingency, damages sought, value | $ 1,800,000 | |||||
Maximum | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Loss contingency, aggregate range of reasonable loss (up to) | $ 750,000,000 | |||||
Standby letters of credit | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Standby letters of credit (SBLC) collateralized with cash and securities | 200,000,000 | 184,000,000 | ||||
SBLC expiring within one year | 1,600,000,000 | |||||
SBLC expiring within one to five years | 568,000,000 | |||||
SBLC expiring after five years | 1,000,000 | |||||
Off-balance sheet credit risks | 2,175,000,000 | 2,298,000,000 | ||||
Commercial letters of credit | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Off-balance sheet credit risks | 87,000,000 | 74,000,000 | ||||
Unsettled Repurchase Agreements | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Guarantor obligations, maximum exposure, undiscounted | 150,000,000 | |||||
Unsettled Reverse Repurchase Agreements | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Guarantor obligations, maximum exposure, undiscounted | 0 | |||||
Operating segments | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Allowance for credit losses on lending related commitments | $ 135,000,000 | $ 94,000,000 | ||||
Federal Court | Mortgage-Securitization Trusts Proceedings | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Number of lawsuits or class actions pending | claim | 3 | |||||
State Court | Mortgage-Securitization Trusts Proceedings | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Number of lawsuits or class actions pending | claim | 1 |
Commitments and contingent li_5
Commitments and contingent liabilities - Standby Letters of Credits by Investment Grade (Details) - Standby letters of credit | Sep. 30, 2020 | Dec. 31, 2019 |
Investment grade | ||
Concentration Risk [Line Items] | ||
Standby letters of credit by investment grade | 87.00% | 90.00% |
Non-investment grade | ||
Concentration Risk [Line Items] | ||
Standby letters of credit by investment grade | 13.00% | 10.00% |
Commitments and contingent li_6
Commitments and contingent liabilities - Significant Industry Concentrations Related to Credit Exposure (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | $ 55,491 | $ 54,953 |
Financial institutions | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 11,000 | |
Unfunded commitments | 33,500 | |
Total exposure | 44,500 | |
Financial institutions | Securities industry | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 2,800 | |
Unfunded commitments | 22,300 | |
Total exposure | 25,100 | |
Financial institutions | Banks | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 6,100 | |
Unfunded commitments | 1,100 | |
Total exposure | 7,200 | |
Financial institutions | Asset managers | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 1,200 | |
Unfunded commitments | 6,500 | |
Total exposure | 7,700 | |
Financial institutions | Insurance | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 100 | |
Unfunded commitments | 2,700 | |
Total exposure | 2,800 | |
Financial institutions | Government | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 100 | |
Unfunded commitments | 200 | |
Total exposure | 300 | |
Financial institutions | Other | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 700 | |
Unfunded commitments | 700 | |
Total exposure | 1,400 | |
Commercial | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 1,900 | |
Unfunded commitments | 12,200 | |
Total exposure | 14,100 | |
Commercial | Services and other | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 1,000 | |
Unfunded commitments | 3,500 | |
Total exposure | 4,500 | |
Commercial | Manufacturing | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 700 | |
Unfunded commitments | 3,800 | |
Total exposure | 4,500 | |
Commercial | Energy and utilities | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 200 | |
Unfunded commitments | 4,000 | |
Total exposure | 4,200 | |
Commercial | Media and telecom | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 0 | |
Unfunded commitments | 900 | |
Total exposure | $ 900 |
Supplemental information to t_3
Supplemental information to the Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||
Transfers from loans to other assets for other real estate owned | $ 1 | $ 1 |
Change in assets of consolidated investment management funds | 343 | 120 |
Change in liabilities of consolidated investment management funds | 3 | 13 |
Change in nonredeemable noncontrolling interests of consolidated investment management funds | 149 | 102 |
Securities purchased not settled | 846 | 804 |
Premises and equipment/capitalized software funded by finance lease obligations | 0 | 14 |
Premises and equipment/operating lease obligations | $ 126 | $ 1,440 |
Supplemental information to t_4
Supplemental information to the Consolidated Statement of Cash Flows - Footnote (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201802Member | |
Premises and equipment/operating lease obligations | $ 126 | $ 1,440 | ||
New or Modified Leases | ||||
Lessee, Lease, Description [Line Items] | ||||
Premises and equipment/operating lease obligations | 196 | |||
Cumulative Effect, Period Of Adoption, Adjustment | ||||
Lessee, Lease, Description [Line Items] | ||||
Premises and equipment/operating lease obligations | $ 1,244 |
Lines of business - Narrative (
Lines of business - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020business | |
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 | 9 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |||
Segment Reporting Information [Line Items] | |||||||
Total fee and other revenue | $ 3,117 | $ 3,176 | $ 3,128 | $ 9,625 | $ 9,272 | ||
Net interest revenue (expense) | 703 | 780 | 730 | 2,297 | 2,373 | ||
Provision for credit losses | 9 | 143 | (16) | 321 | [1] | (17) | [1] |
Income from consolidated investment management funds, net of noncontrolling interests | 937 | 950 | 1,038 | 2,867 | 3,001 | ||
Investment income (loss), net | 27 | 54 | 3 | 43 | 39 | ||
Net income (loss) attributable to noncontrolling interests | 7 | 15 | 3 | 4 | 17 | ||
Operating segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Total fee and other revenue | 3,137 | 3,215 | 3,128 | 9,664 | 9,294 | ||
Net interest revenue (expense) | 703 | 780 | 730 | 2,297 | 2,373 | ||
Total revenue | 3,840 | 3,995 | 3,858 | 11,961 | 11,667 | ||
Provision for credit losses | 9 | 143 | (16) | 321 | (17) | ||
Noninterest expense | 2,681 | 2,686 | 2,590 | 8,079 | 7,936 | ||
Income (loss) before taxes | $ 1,150 | $ 1,166 | $ 1,284 | $ 3,561 | $ 3,748 | ||
Pre-tax operating margin | 30.00% | 29.00% | 33.00% | 30.00% | 32.00% | ||
Average assets | $ 414,865 | $ 415,359 | $ 350,679 | $ 405,203 | $ 343,129 | ||
Operating segments | Investment Services | |||||||
Segment Reporting Information [Line Items] | |||||||
Total fee and other revenue | 2,246 | 2,339 | 2,296 | 7,021 | 6,690 | ||
Net interest revenue (expense) | 681 | 768 | 761 | 2,255 | 2,348 | ||
Total revenue | 2,927 | 3,107 | 3,057 | 9,276 | 9,038 | ||
Provision for credit losses | (10) | 145 | (15) | 284 | (11) | ||
Noninterest expense | 2,020 | 1,989 | 1,973 | 5,996 | 5,917 | ||
Income (loss) before taxes | $ 917 | $ 973 | $ 1,099 | $ 2,996 | $ 3,132 | ||
Pre-tax operating margin | 31.00% | 31.00% | 36.00% | 32.00% | 35.00% | ||
Average assets | $ 329,324 | $ 335,288 | $ 269,926 | $ 322,924 | $ 263,631 | ||
Operating segments | Investment and Wealth Management | |||||||
Segment Reporting Information [Line Items] | |||||||
Total fee and other revenue | 871 | 838 | 838 | 2,555 | 2,561 | ||
Net interest revenue (expense) | 47 | 48 | 49 | 147 | 175 | ||
Total revenue | 918 | 886 | 887 | 2,702 | 2,736 | ||
Provision for credit losses | 12 | 7 | 0 | 28 | (1) | ||
Noninterest expense | 661 | 658 | 592 | 2,014 | 1,916 | ||
Income (loss) before taxes | $ 245 | $ 221 | $ 295 | $ 660 | $ 821 | ||
Pre-tax operating margin | 27.00% | 25.00% | 33.00% | 24.00% | 30.00% | ||
Average assets | $ 30,160 | $ 30,327 | $ 27,840 | $ 30,343 | $ 29,815 | ||
Income from consolidated investment management funds, net of noncontrolling interests | 20 | 39 | 0 | 39 | 22 | ||
Investment income (loss), net | 27 | 54 | 3 | 43 | 39 | ||
Net income (loss) attributable to noncontrolling interests | 7 | 15 | 3 | 4 | 17 | ||
Operating segments | Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Total fee and other revenue | 20 | 38 | (6) | 88 | 43 | ||
Net interest revenue (expense) | (25) | (36) | (80) | (105) | (150) | ||
Total revenue | (5) | 2 | (86) | (17) | (107) | ||
Provision for credit losses | 7 | (9) | (1) | 9 | (5) | ||
Noninterest expense | 0 | 39 | 25 | 69 | 103 | ||
Income (loss) before taxes | (12) | (28) | (110) | (95) | (205) | ||
Average assets | $ 55,381 | $ 49,744 | $ 52,913 | $ 51,936 | $ 49,683 | ||
[1] | In the first quarter of 2020, we adopted new accounting guidance included in ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, on a prospective basis. See Note 2 of the Notes to Consolidated Financial Statements for additional information. |
Uncategorized Items - bk-202009
Label | Element | Value |
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | $ 6,718,000,000 |
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | 4,104,000,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 2,891,000,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 2,274,000,000 |