Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 20, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | STATE STREET Corp | |
Entity Central Index Key | 93,751 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 365,827,604 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fee revenue: | ||||
Servicing fees | $ 1,381 | $ 1,339 | $ 2,802 | $ 2,635 |
Management fees | 465 | 397 | 937 | 779 |
Trading services | 315 | 289 | 619 | 564 |
Securities finance | 154 | 179 | 295 | 312 |
Processing fees and other | 43 | 31 | 83 | 143 |
Total fee revenue | 2,358 | 2,235 | 4,736 | 4,433 |
Net interest income: | ||||
Interest income | 907 | 700 | 1,764 | 1,350 |
Interest expense | 248 | 125 | 462 | 265 |
Net interest income | 659 | 575 | 1,302 | 1,085 |
Gains (losses) related to investment securities, net: | ||||
Gains (losses) from sales of available-for-sale securities, net | 9 | 0 | 8 | (40) |
Losses from other-than-temporary impairment | 0 | 0 | 1 | 0 |
Gains (losses) related to investment securities, net | 9 | 0 | 7 | (40) |
Total revenue | 3,026 | 2,810 | 6,045 | 5,478 |
Provision for loan losses | 2 | 3 | 2 | 1 |
Expenses: | ||||
Compensation and employee benefits | 1,125 | 1,071 | 2,374 | 2,237 |
Information systems and communications | 321 | 283 | 636 | 570 |
Transaction processing services | 246 | 207 | 488 | 404 |
Occupancy | 124 | 116 | 244 | 226 |
Acquisition and restructuring costs | 0 | 71 | 0 | 100 |
Professional services | 89 | 97 | 168 | 191 |
Amortization of other intangible assets | 48 | 54 | 98 | 106 |
Other | 206 | 132 | 407 | 283 |
Total expenses | 2,159 | 2,031 | 4,415 | 4,117 |
Income before income tax expense (benefit) | 865 | 776 | 1,628 | 1,360 |
Income tax expense (benefit) | 131 | 156 | 233 | 238 |
Net income | 734 | 620 | 1,395 | 1,122 |
Net income available to common shareholders | $ 698 | $ 584 | $ 1,303 | $ 1,030 |
Earnings per common share: | ||||
Basic (in USD per share) | $ 1.91 | $ 1.56 | $ 3.55 | $ 2.72 |
Diluted (in USD per share) | $ 1.88 | $ 1.53 | $ 3.51 | $ 2.69 |
Average common shares outstanding (in thousands): | ||||
Basic (in shares) | 365,619 | 375,395 | 366,524 | 378,293 |
Diluted (in shares) | 370,410 | 380,915 | 371,415 | 383,489 |
Cash dividends declared (in USD per share) | $ 0.42 | $ 0.38 | $ 0.84 | $ 0.76 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 734 | $ 620 | $ 1,395 | $ 1,122 |
Other comprehensive income (loss), net of related taxes: | ||||
Foreign currency translation, net of related taxes of ($62) and $13, respectively | (338) | 435 | (187) | 526 |
Net unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment and net of related taxes of ($136) and $308, respectively | (122) | 271 | (257) | 472 |
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes of $22 and $5, respectively | 5 | 3 | 9 | 9 |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of $3 and $1, respectively | (1) | 1 | (1) | 2 |
Net unrealized gains (losses) on cash flow hedges, net of related taxes of ($10) and ($164), respectively | 40 | (177) | (57) | (247) |
Net unrealized gains (losses) on retirement plans, net of related taxes of $3 and $2, respectively | 2 | 2 | 14 | 8 |
Other comprehensive income (loss) | (414) | 535 | (479) | 770 |
Total comprehensive income | $ 320 | $ 1,155 | $ 916 | $ 1,892 |
Consolidated Statement of Comp4
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation, Taxes | $ (114) | $ (110) | $ (62) | $ 13 |
Change in net unrealized losses on available-for-sale securities, Taxes | (20) | 177 | (136) | 308 |
Change in net unrealized losses on available-for-sale securities designated in fair value hedges, Taxes | 1 | 0 | 22 | 5 |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, Taxes | 1 | 0 | 3 | 1 |
Change in net unrealized losses on cash flow hedges, Taxes | 9 | (113) | (10) | (164) |
Change in unrealized losses on retirement plans, Taxes | $ 0 | $ (1) | $ 3 | $ 2 |
Consolidated Statement of Condi
Consolidated Statement of Condition - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash and due from banks | $ 3,886 | $ 2,107 |
Interest-bearing deposits with banks | 76,366 | 67,227 |
Securities purchased under resale agreements | 3,583 | 3,241 |
Trading account assets | 1,160 | 1,093 |
Investment securities available-for-sale | 47,348 | 57,121 |
Investment securities held-to-maturity (fair value of $38,805 and $40,255) | 39,594 | 40,458 |
Loans and leases (less allowance for losses of $55 and $54) | 24,069 | 23,240 |
Premises and equipment (net of accumulated depreciation of $3,999 and $3,881) | 2,189 | 2,186 |
Accrued interest and fees receivable | 3,086 | 3,099 |
Goodwill | 5,973 | 6,022 |
Other intangible assets | 1,500 | 1,613 |
Other assets | 39,554 | 31,018 |
Total assets | 248,308 | 238,425 |
Deposits: | ||
Non-interest-bearing | 52,316 | 47,175 |
Interest-bearing—U.S. | 57,407 | 50,139 |
Interest-bearing—non-U.S. | 76,940 | 87,582 |
Total deposits | 186,663 | 184,896 |
Securities sold under repurchase agreements | 3,088 | 2,842 |
Other short-term borrowings | 1,103 | 1,144 |
Accrued expenses and other liabilities | 24,496 | 15,606 |
Long-term debt | 10,387 | 11,620 |
Total liabilities | 225,737 | 216,108 |
Commitments, guarantees and contingencies (Notes 9 and 10) | ||
Shareholders’ equity: | ||
Common stock, $1 par: 750,000,000 shares authorized; 503,879,642 and 503,879,642 shares issued | 504 | 504 |
Surplus | 9,820 | 9,799 |
Retained earnings | 19,856 | 18,856 |
Accumulated other comprehensive income (loss) | (1,488) | (1,009) |
Treasury stock, at cost (138,052,038 and 136,229,784 shares) | (9,317) | (9,029) |
Total shareholders’ equity | 22,571 | 22,317 |
Total liabilities and shareholders' equity | 248,308 | 238,425 |
Series C Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding | 491 | 491 |
Series D Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding | 742 | 742 |
Series E Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding | 728 | 728 |
Series F Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding | 742 | 742 |
Series G Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, and Series G, 5,000 shares issued and outstanding | $ 493 | $ 493 |
Consolidated Statement of Cond6
Consolidated Statement of Condition (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Investment securities held-to-maturity, fair value | $ 38,805 | $ 40,255 |
Loans and leases, allowance for losses | 55 | 54 |
Premises and equipment, accumulated depreciation | $ 3,999 | $ 3,881 |
Stockholders' Equity: | ||
Preferred stock, no par value (in USD per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 3,500,000 | 3,500,000 |
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 503,879,642 | 503,879,642 |
Treasury stock, shares | 0 | 136,229,784 |
Series C Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued | 5,000 | 5,000 |
Preferred stock, shares outstanding | 5,000 | 5,000 |
Series D Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued | 7,500 | 7,500 |
Preferred stock, shares outstanding | 7,500 | 7,500 |
Series E Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued | 7,500 | 7,500 |
Preferred stock, shares outstanding | 7,500 | 7,500 |
Series F Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued | 7,500 | 7,500 |
Preferred stock, shares outstanding | 7,500 | 7,500 |
Series G Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued | 5,000 | 5,000 |
Preferred stock, shares outstanding | 5,000 | 5,000 |
Consolidated Statement of Chang
Consolidated Statement of Changes In Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | PREFERRED STOCK | COMMON STOCK | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | TREASURY STOCK |
Beginning balance at Dec. 31, 2016 | $ 21,219 | $ 3,196 | $ 504 | $ 9,782 | $ 17,459 | $ (2,040) | $ (7,682) |
Beginning balance (shares) at Dec. 31, 2016 | 503,880 | 121,941 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,122 | 1,122 | |||||
Other comprehensive income (loss) | 770 | 770 | |||||
Cash dividends declared: | |||||||
Common stock dividends | (286) | (286) | |||||
Preferred stock cash dividend | (91) | (91) | |||||
Common stock acquired | (750) | $ (750) | |||||
Common stock acquired (shares) | 9,383 | ||||||
Common stock awards vested | 86 | 21 | $ 65 | ||||
Common stock awards and options exercised (shares) | (1,551) | ||||||
Other | (2) | (2) | |||||
Other (shares) | |||||||
Ending balance at Jun. 30, 2017 | 22,068 | 3,196 | $ 504 | 9,803 | 18,202 | (1,270) | $ (8,367) |
Ending balance (shares) at Jun. 30, 2017 | 503,880 | 129,773 | |||||
Beginning balance at Dec. 31, 2017 | 22,317 | 3,196 | $ 504 | 9,799 | 18,856 | (1,009) | $ (9,029) |
Beginning balance (shares) at Dec. 31, 2017 | 503,880 | 136,230 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,395 | 1,395 | |||||
Other comprehensive income (loss) | (479) | (479) | |||||
Cash dividends declared: | |||||||
Common stock dividends | (307) | (307) | |||||
Preferred stock cash dividend | (91) | 91 | |||||
Common stock acquired | (350) | $ (350) | |||||
Common stock acquired (shares) | 3,324 | ||||||
Common stock awards vested | 83 | 21 | $ 62 | ||||
Common stock awards and options exercised (shares) | (1,498) | ||||||
Other | 3 | 3 | |||||
Other (shares) | (4) | ||||||
Ending balance at Jun. 30, 2018 | $ 22,571 | $ 3,196 | $ 504 | $ 9,820 | $ 19,856 | $ (1,488) | $ (9,317) |
Ending balance (shares) at Jun. 30, 2018 | 503,880 | 138,052 |
Consolidated Statement of Chan8
Consolidated Statement of Changes In Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared (in USD per share) | $ 0.42 | $ 0.38 | $ 0.84 | $ 0.76 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Activities: | ||
Net income | $ 1,395 | $ 1,122 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Deferred income tax (benefit) | (93) | (56) |
Amortization of other intangible assets | 98 | 106 |
Other non-cash adjustments for depreciation, amortization and accretion, net | 489 | 415 |
(Gains) losses related to investment securities, net | (7) | 40 |
Change in trading account assets, net | (67) | 128 |
Change in accrued interest and fees receivable, net | 13 | (161) |
Change in collateral deposits, net | 3,159 | (1,047) |
Change in unrealized losses on foreign exchange derivatives, net | (2,956) | 3,578 |
Change in other assets, net | (276) | (1,787) |
Change in accrued expenses and other liabilities, net | 1,379 | 1,354 |
Other, net | 268 | 307 |
Net cash provided by operating activities | 3,402 | 3,999 |
Investing Activities: | ||
Net (increase) decrease in interest-bearing deposits with banks | (9,139) | 7,318 |
Net (increase) in securities purchased under resale agreements | (342) | (1,216) |
Proceeds from sales of available-for-sale securities | 15,687 | 4,354 |
Proceeds from maturities of available-for-sale securities | 8,009 | 15,178 |
Purchases of available-for-sale securities | (15,459) | (14,880) |
Proceeds from maturities of held-to-maturity securities | 2,863 | 1,621 |
Purchases of held-to-maturity securities | (2,102) | (2,636) |
Net (increase) in loans and leases | (819) | (4,587) |
Purchases of equity investments and other long-term assets | (173) | (19) |
Purchases of premises and equipment, net | (285) | (325) |
Proceeds from sale of joint venture investment | 0 | 172 |
Other, net | 28 | 36 |
Net cash (used in) provided by investing activities | (1,732) | 5,016 |
Financing Activities: | ||
Net increase (decrease) in time deposits | 2,727 | (17,067) |
Net (decrease) increase in all other deposits | (960) | 11,320 |
Net increase (decrease) in other short-term borrowings | 205 | (664) |
Proceeds from issuance of long-term debt, net of issuance costs | 0 | 747 |
Payments for long-term debt and obligations under capital leases | (1,024) | (471) |
Purchases of common stock | (350) | (592) |
Repurchases of common stock for employee tax withholding | (90) | (76) |
Payments for cash dividends | (399) | (379) |
Other, net | 0 | 9 |
Net cash provided by (used in) financing activities | 109 | (7,173) |
Net increase | 1,779 | 1,842 |
Cash and due from banks at beginning of period | 2,107 | 1,314 |
Cash and due from banks at end of period | $ 3,886 | $ 3,156 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accounting and financial reporting policies of State Street Corporation conform to U.S. GAAP. State Street Corporation, the Parent Company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to “State Street,” “we,” “us,” “our” or similar references mean State Street Corporation and its subsidiaries on a consolidated basis. Our principal banking subsidiary is State Street Bank. The accompanying Consolidated Financial Statements should be read in conjunction with the financial and risk factor information included in our 2017 Form 10-K, which we previously filed with the SEC. The consolidated financial statements accompanying these condensed notes are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the consolidated results of operations in these financial statements, have been made. Certain previously reported amounts presented in this Form 10-Q have been reclassified to conform to current-period presentation. Events occurring subsequent to the date of our consolidated statement of condition were evaluated for potential recognition or disclosure in our consolidated financial statements through the date we filed this Form 10-Q with the SEC. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates. These accounting estimates reflect the best judgment of management, but actual results could differ. Our consolidated statement of condition as of December 31, 2017 included in the accompanying consolidated financial statements was derived from the audited financial statements as of that date, but does not include all notes required by U.S. GAAP for a complete set of consolidated financial statements. Recent Accounting Developments Relevant standards that were issued but not yet adopted Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2016-02, Leases (Topic 842) The standard represents a wholesale change to lease accounting and requires all leases, other than short-term leases, to be reported on balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires extensive disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities. January 1, 2019 We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate an increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding liability for all lease obligations that are currently classified as operating leases, primarily real estate leases for office space, as well as additional disclosure on all our lease obligations. ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The standard replaces the existing incurred loss impairment guidance and requires immediate recognition of expected credit losses for financial assets carried at amortized cost, including trade and other receivables, loans and commitments, held-to-maturity debt securities and other financial assets, held at the reporting date to be measured based on historical experience, current conditions and reasonable supportable forecasts. The standard also amends existing impairment guidance for available-for-sale securities, and credit losses will be recorded as an allowance versus a write-down of the amortized cost basis of the security and will allow for a reversal of impairment loss when the credit of the issuer improves. The guidance requires a cumulative effect of initial application to be recognized in retained earnings at the date of initial application. January 1, 2020, early adoption permitted We are currently assessing the impact of the standard on our consolidated financial statements, and a significant implementation project is in place to ensure that expected credit losses are calculated in accordance with the standard. We have established a steering committee to provide cross-functional governance over the project plan and key decisions, and are currently developing key accounting policies, assessing existing credit loss models against the new guidance and processes and identifying a complete set of data requirements and sources. We continue to develop and test new and modified credit loss models and based on our analysis to date, we expect the timing of the allowance for credit losses to accelerate under the new standard. We are continuing to assess the extent of the impact on the allowance for credit losses which will be impacted by the Company's portfolio and the macroeconomic factors on the date of adoption. ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The standard simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The ASU requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. January 1, 2020, early adoption permitted We are evaluating the impacts of early adoption, and will apply this standard prospectively upon adoption. ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium amortization on Purchased Callable Debt Securities The standard shortens the amortization period for certain purchased callable debt securities to the earliest call date. January 1, 2019, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities The standard amends the hedge accounting model to better portray the economics of risk management activities in the financial statements and enhances the presentation of hedge results. The amendments also make targeted changes to simplify the application of hedge accounting in certain situations. January 1, 2019, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income This standard provides an election to reclassify the stranded tax effects resulting from the enactment of the Tax Cuts and Jobs Act of 2017, from accumulated other comprehensive income to retained earnings. January 1, 2019, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. We adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), on January 1, 2018. The standard provides companies with a single model for recognizing revenue from contracts with customers. The core principle requires a company to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to in exchange for those goods or services. We used the modified retrospective method of transition, which requires the impact of applying the standard on prior periods to be reflected in opening retained earnings upon adoption. The adoption of the standard does not have a material impact on the timing of recognition of revenue in our consolidated statement of income, or our consolidated statement of position, and therefore no adjustment has been made to retained earnings. However, due to the updated principal and agent guidance in the standard, certain costs we pay to third parties on behalf of our clients previously reported in our consolidated statement of income on a net basis, primarily against the related management fee revenue, and trading services revenue are now reported on a gross basis as expenses. For the six months ended June 30, 2018, both revenues and expenses increased by approximately $135 million , primarily due to the updated principal and agent guidance. The revenue impact was approximately $90 million in management fees, $35 million in trading services, and $10 million across other revenue line items, and the expense impact was approximately $30 million in transaction processing, $90 million in other expenses, and $15 million in information systems and communication. Adoption of the standard had no impact on cash from or used in operating, finan cing, or investing activities on our consolidated statements of cash flows. We adopted ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, effective January 1, 2018. Under the new standard, all equity securities will be measured at fair value through earnings with certain exceptions, including investments accounted for under the equity method of accounting or where the fair market value of an equity security is not readily available. Upon adoption of the standard on January 1, 2018, we reclassified approximately $397 million of money market funds and $46 million of equity securities held at fair value through profit and loss in other assets. The cumulative-effect transition adjustment recognized in retained earnings on January 1, 2018, and the change in fair value recognized through profit and loss for the period ended June 30, 2018, were immaterial to the financial statements. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair Value Measurements We carry trading account assets and liabilities, AFS debt securities, certain equity securities and various types of derivative financial instruments, at fair value in our consolidated statement of condition on a recurring basis. Changes in the fair values of these financial assets and liabilities are recorded either as components of our consolidated statement of income or as components of AOCI within shareholders' equity in our consolidated statement of condition. We measure fair value for the above-described financial assets and liabilities in conformity with U.S. GAAP that governs the measurement of the fair value of financial instruments. Management believes that its valuation techniques and underlying assumptions used to measure fair value conform to the provisions of U.S. GAAP. We categorize the financial assets and liabilities that we carry at fair value based on a prescribed three-level valuation hierarchy. For information about our valuation techniques for financial assets and financial liabilities measured at fair value and the fair value hierarchy, refer to pages 131 to 138 in Note 2 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K. The following tables present information with respect to our financial assets and liabilities carried at fair value in our consolidated statement of condition on a recurring basis as of the dates indicated. During the six months ended June 30, 2018 , no assets or liabilities were transferred between levels 1 and 2. Approximately $9 million of assets were transferred between levels 1 and 2 during the year ended December 31, 2017. Fair Value Measurements on a Recurring Basis As of June 30, 2018 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 39 $ — $ — $ 39 Non-U.S. government securities 374 135 — 509 Other 79 533 — 612 Total trading account assets 492 668 — 1,160 AFS investment securities: U.S. Treasury and federal agencies: Direct obligations 11 — — 11 Mortgage-backed securities — 15,893 — 15,893 Total U.S. Treasury and federal agencies 11 15,893 — 15,904 Asset-backed securities: Student loans — 1,567 — 1,567 Credit cards — 617 — 617 CLOs — — 851 851 Total asset-backed securities — 2,184 851 3,035 Non-U.S. debt securities: Mortgage-backed securities — 2,615 — 2,615 Asset-backed securities — 1,183 474 1,657 Government securities — 13,072 — 13,072 Other (2) — 4,283 169 4,452 Total non-U.S. debt securities — 21,153 643 21,796 State and political subdivisions — 4,228 — 4,228 Collateralized mortgage obligations — 319 — 319 Other U.S. debt securities — 2,066 — 2,066 Total AFS investment securities 11 45,843 1,494 47,348 Other assets: Derivative instruments: Foreign exchange contracts — 17,373 7 (11,231 ) 6,149 Other derivative contracts 2 — — — 2 Total derivative instruments 2 17,373 7 (11,231 ) 6,151 Other — 449 — — 449 Total assets carried at fair value $ 505 $ 64,333 $ 1,501 $ (11,231 ) $ 55,108 Liabilities: Accrued expenses and other liabilities: Trading account liabilities: Other 70 — — — 70 Derivative instruments: Foreign exchange contracts — 17,552 6 (12,608 ) 4,950 Interest-rate contracts 4 102 — — 106 Other derivative contracts 2 268 — — 270 Total derivative instruments 6 17,922 6 (12,608 ) 5,326 Total liabilities carried at fair value $ 76 $ 17,922 $ 6 $ (12,608 ) $ 5,396 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $1,557 million and $2,934 million , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of June 30, 2018 , the fair value of other non-U.S. debt securities was primarily composed of $1,959 million of covered bonds and $1,735 million of corporate bonds. Fair Value Measurements on a Recurring Basis As of December 31, 2017 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 39 $ — $ — $ 39 Non-U.S. government securities 389 93 — 482 Other 44 528 — 572 Total trading account assets 472 621 — 1,093 AFS investment securities: U.S. Treasury and federal agencies: Direct obligations 11 212 — 223 Mortgage-backed securities — 10,872 — 10,872 Total U.S. Treasury and federal agencies 11 11,084 — 11,095 Asset-backed securities: Student loans — 3,358 — 3,358 Credit cards — 1,542 — 1,542 CLOs — 89 1,358 1,447 Total asset-backed securities — 4,989 1,358 6,347 Non-U.S. debt securities: Mortgage-backed securities — 6,576 119 6,695 Asset-backed securities — 2,545 402 2,947 Government securities — 10,721 — 10,721 Other (2) — 5,904 204 6,108 Total non-U.S. debt securities — 25,746 725 26,471 State and political subdivisions — 9,108 43 9,151 Collateralized mortgage obligations — 1,054 — 1,054 Other U.S. debt securities — 2,560 — 2,560 U.S. equity securities — 46 — 46 U.S. money-market mutual funds — 397 — 397 Total AFS investment securities 11 54,984 2,126 57,121 Other assets: Derivatives instruments: Foreign exchange contracts — 11,596 1 (7,593 ) 4,004 Interest-rate contracts 8 — — — 8 Other derivative contracts 1 — — — 1 Total derivative instruments 9 11,596 1 (7,593 ) 4,013 Total assets carried at fair value $ 492 $ 67,201 $ 2,127 $ (7,593 ) $ 62,227 Liabilities: Accrued expenses and other liabilities: Trading account liabilities: Other 39 — — — 39 Derivative instruments: Foreign exchange contracts — 11,467 1 (5,970 ) 5,498 Interest-rate contracts — 100 — — 100 Other derivative contracts 1 283 — — 284 Total derivative instruments 1 11,850 1 (5,970 ) 5,882 Total liabilities carried at fair value $ 40 $ 11,850 $ 1 $ (5,970 ) $ 5,921 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $2,045 million and $422 million , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of December 31, 2017 , the fair value of other non-U.S. debt securities was primarily composed of $3,537 million of covered bonds and $1,885 million of corporate bonds. The following tables present activity related to our level 3 financial assets during the three and six months ended June 30, 2018 and 2017 , respectively, including total realized and unrealized gains and losses. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the three and six months ended June 30, 2018 and 2017 , transfers into level 3 were mainly related to certain ABS, including non-U.S. debt securities. During the three and six months ended June 30, 2018 and 2017 , transfers out of level 3 were mainly related to certain MBS and ABS, including non-U.S. debt securities, for which fair value was measured using prices for which observable market information became available. Fair Value Measurements Using Significant Unobservable Inputs Three Months Ended June 30, 2018 Fair Value Total Realized and Purchases Sales Settlements Fair Value as of June 30, 2018 (1) Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: AFS Investment securities: Asset-backed securities: CLOs $ 826 $ 1 $ (2 ) $ — $ — $ 26 $ 851 Total asset-backed securities 826 1 (2 ) — — 26 851 Non-U.S. debt securities: Asset-backed securities 272 — — 269 — (67 ) 474 Other 178 — — — — (9 ) 169 Total non-U.S. debt securities 450 — — 269 — (76 ) 643 State and political subdivisions 37 — — — (37 ) — — Total AFS investment securities 1,313 1 (2 ) 269 (37 ) (50 ) 1,494 Other assets: Derivative instruments: Foreign exchange contracts 3 3 — 4 — (3 ) 7 $ 2 Total derivative instruments 3 3 — 4 — (3 ) 7 2 Total assets carried at fair value $ 1,316 $ 4 $ (2 ) $ 273 $ (37 ) $ (53 ) $ 1,501 $ 2 (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services. Fair Value Measurements Using Significant Unobservable Inputs Six Months Ended June 30, 2018 Fair Value as of Total Realized and Purchases Sales Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value as of June 30, 2018 (1) Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2018 (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: AFS Investment securities: Asset-backed securities: CLOs $ 1,358 $ 2 $ (3 ) $ 318 $ (636 ) $ 21 $ — $ (209 ) $ 851 Total asset-backed securities 1,358 2 (3 ) 318 (636 ) 21 — (209 ) 851 Non-U.S. debt securities: Mortgage-backed securities 119 — — — — — — (119 ) — Asset-backed securities 402 — (1 ) 380 (311 ) (64 ) 68 — 474 Other 204 — — — — (35 ) — — 169 Total non-U.S. debt securities 725 — (1 ) 380 (311 ) (99 ) 68 (119 ) 643 State and political subdivisions 43 — — (1 ) (37 ) — — (5 ) — Total AFS investment securities 2,126 2 (4 ) 697 (984 ) (78 ) 68 (333 ) 1,494 Other assets: Derivative instruments: Foreign exchange contracts 1 1 — 5 — — — — 7 $ 2 Total derivative instruments 1 1 — 5 — — — — 7 2 Total assets carried at fair value $ 2,127 $ 3 $ (4 ) $ 702 $ (984 ) $ (78 ) $ 68 $ (333 ) $ 1,501 $ 2 (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services. Fair Value Measurements Using Significant Unobservable Inputs Three Months Ended June 30, 2017 Fair Value as of March 31, Total Realized and Purchases Settlements Transfers Transfers Fair Value as of June 30, Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2017 (In millions) Recorded (1) Recorded (1) Assets: AFS Investment securities: Asset-backed securities: Student loans $ 99 $ — $ — $ — $ — $ — $ (99 ) $ — CLOs 771 1 (1 ) 199 (120 ) 101 — 951 Total asset-backed securities 870 1 (1 ) 199 (120 ) 101 (99 ) 951 Non-U.S. debt securities: Asset-backed securities 59 1 (1 ) — (16 ) 51 (31 ) 63 Other 256 — — — 18 — — 274 Total non-U.S. debt securities 315 1 (1 ) — 2 51 (31 ) 337 State and political subdivisions 39 — — — (1 ) — — 38 Collateralized mortgage obligations 39 — — — — — (39 ) — Other U.S. debt securities — — — 19 — — — 19 Total AFS investment securities 1,263 2 (2 ) 218 (119 ) 152 (169 ) 1,345 Other assets: Derivative instruments: Foreign exchange contracts 2 1 — 2 — — — 5 $ 2 Total derivative instruments 2 1 — 2 — — — 5 2 Total assets carried at fair value $ 1,265 $ 3 $ (2 ) $ 220 $ (119 ) $ 152 $ (169 ) $ 1,350 $ 2 (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services. Fair Value Measurements Using Significant Unobservable Inputs Six Months Ended June 30, 2017 Fair Value as of December 31, 2016 Total Realized and Purchases Settlements Transfers Transfers Fair Value as of June 30, Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2017 (In millions) Recorded (1) Recorded (1) Assets: AFS Investment securities: Asset-backed securities: Student loans $ 97 $ — $ 2 $ — $ — $ — $ (99 ) $ — CLOs 905 2 (1 ) 354 (410 ) 101 — 951 Total asset-backed securities 1,002 2 1 354 (410 ) 101 (99 ) 951 Non-U.S. debt securities: Asset-backed securities 32 1 (1 ) 31 (20 ) 51 (31 ) 63 Other 248 — — 5 21 — — 274 Total non-U.S. debt securities 280 1 (1 ) 36 1 51 (31 ) 337 State and political subdivisions 39 — — — (1 ) — — 38 Collateralized mortgage obligations 16 — — 23 — — (39 ) — Other U.S. debt securities — — — 19 — — — 19 Total AFS investment securities 1,337 3 — 432 (410 ) 152 (169 ) 1,345 Other assets: Derivative instruments: Foreign exchange contracts 8 (6 ) — 7 (4 ) — — 5 $ 2 Total derivative instruments 8 (6 ) — 7 (4 ) — — 5 2 Total assets carried at fair value $ 1,345 $ (3 ) $ — $ 439 $ (414 ) $ 152 $ (169 ) $ 1,350 $ 2 (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services. The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level 3 financial assets and liabilities measured at fair value on a recurring basis for which we use internally-developed pricing models. The significant unobservable inputs for our level 3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker or dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer. Quantitative Information about Level 3 Fair Value Measurements Fair Value Weighted-Average (Dollars in millions) As of June 30, 2018 As of December 31, 2017 Valuation Technique Significant (1) As of June 30, 2018 As of December 31, 2017 Significant unobservable inputs readily available to State Street: Assets: Derivative instruments, foreign exchange contracts $ 7 $ 1 Option model Volatility 8.4 % 7.2 % Total $ 7 $ 1 Liabilities: Derivative instruments, foreign exchange contracts $ 6 $ 1 Option model Volatility 8.3 % 7.2 % Total $ 6 $ 1 (1) Significant chan ges in these unobservable inputs would result in significant changes in fair value measurement. Fair Value Estimates Estimates of fair value for financial instruments not carried at fair value on a recurring basis in our consolidated statement of condition are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information. The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value on a recurring basis, as they would be categorized within the fair value hierarchy, as of the dates indicated. Fair Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) June 30, 2018 Financial Assets: Cash and due from banks $ 3,886 $ 3,886 $ 3,886 $ — $ — Interest-bearing deposits with banks 76,366 76,366 — 76,366 — Securities purchased under resale agreements 3,583 3,583 — 3,583 — Investment securities held-to-maturity 39,594 38,805 15,639 23,043 123 Net loans (excluding leases) (1) 23,638 23,613 — 23,571 42 Other (2) 7,000 7,000 — 7,000 — Financial Liabilities: Deposits: Non-interest-bearing $ 52,316 $ 52,316 $ — $ 52,316 $ — Interest-bearing - U.S. 57,407 57,407 — 57,407 — Interest-bearing - non-U.S. 76,940 76,940 — 76,940 — Securities sold under repurchase agreements 3,088 3,088 — 3,088 — Other short-term borrowings 1,103 1,103 — 1,103 — Long-term debt 10,387 10,597 — 10,346 251 Other (2) 7,000 7,000 — 7,000 — (1) Includes $22 million of loans classified as held-for-sale that were measured at fair value on a non-recurring basis as of June 30, 2018. (2) Represents a portion of underlying client assets related to our enhanced custody business, which assets clients have allowed us to transfer and re-pledge. Fair Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) December 31, 2017 Financial Assets: Cash and due from banks $ 2,107 $ 2,107 $ 2,107 $ — $ — Interest-bearing deposits with banks 67,227 67,227 — 67,227 — Securities purchased under resale agreements 3,241 3,241 — 3,241 — Investment securities held-to-maturity 40,458 40,255 16,814 23,318 123 Net loans (excluding leases) (1) 22,577 22,482 — 22,431 51 Financial Liabilities: Deposits: Non-interest-bearing $ 47,175 $ 47,175 $ — $ 47,175 $ — Interest-bearing - U.S. 50,139 50,139 — 50,139 — Interest-bearing - non-U.S. 87,582 87,582 — 87,582 — Securities sold under repurchase agreements 2,842 2,842 — 2,842 — Other short-term borrowings 1,144 1,144 — 1,144 — Long-term debt 11,620 11,919 — 11,639 280 (1) Includes $3 million of loans classified as held-for-sale that were measured at fair value on a non-recurring basis as of December 31, 2017. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Investment securities held by us are classified as either trading account assets, AFS , HTM or equity securities held at fair value at the time of purchase and reassessed periodically, based on management’s intent. As described in Note 1, upon adoption of ASU 2016-01 we reclassified approximately $397 million of money market funds and $46 million of equity securities to other assets, where they are held at fair value with changes to fair value recorded through our consolidated statement of income. Generally, trading assets are debt and equity securities purchased in connection with our trading activities and, as such, are expected to be sold in the near term. Our trading activities typically involve active and frequent buying and selling with the objective of generating profits on short-term movements. AFS investment securities are those securities that we intend to hold for an indefinite period of time. AFS investment securities include securities utilized as part of our asset and liability management activities that may be sold in response to changes in interest rates, prepayment risk, liquidity needs or other factors. HTM securities are debt securities that management has the intent and the ability to hold to maturity. Trading assets are carried at fair value. Both realized and unrealized gains and losses on trading assets are recorded in trading services revenue in our consolidated statement of income. AFS securities are carried at fair value, and after-tax net unrealized gains and losses are recorded in AOCI. Gains or losses realized on sales of AFS investment securities are computed using the specific identification method and are recorded in gains (losses) related to investment securities, net, in our consolidated statement of income. HTM investment securities are carried at cost, adjusted for amortization of premiums and accretion of discounts. The following table presents the amortized cost, fair value and associated unrealized gains and losses of AFS and HTM investment securities as of the dates indicated: June 30, 2018 December 31, 2017 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value (In millions) Gains Losses Gains Losses Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 11 $ — $ — $ 11 $ 222 $ 2 $ 1 $ 223 Mortgage-backed securities 16,158 22 287 15,893 10,975 26 129 10,872 Total U.S. Treasury and federal agencies 16,169 22 287 15,904 11,197 28 130 11,095 Asset-backed securities: Student loans (1) 1,546 22 1 1,567 3,325 37 4 3,358 Credit cards 639 1 23 617 1,565 2 25 1,542 CLOs 848 4 1 851 1,440 7 — 1,447 Total asset-backed securities 3,033 27 25 3,035 6,330 46 29 6,347 Non-U.S. debt securities: Mortgage-backed securities 2,609 8 2 2,615 6,664 36 5 6,695 Asset-backed securities 1,655 2 — 1,657 2,942 5 — 2,947 Government securities 13,089 31 48 13,072 10,754 16 49 10,721 Other (2) 4,449 19 16 4,452 6,076 38 6 6,108 Total non-U.S. debt securities 21,802 60 66 21,796 26,436 95 60 26,471 State and political subdivisions (3) 4,127 114 13 4,228 8,929 245 23 9,151 Collateralized mortgage obligations 325 — 6 319 1,060 3 9 1,054 Other U.S. debt securities 2,104 5 43 2,066 2,563 12 15 2,560 U.S. equity securities (4) — — — — 40 8 2 46 U.S. money-market mutual funds (4) — — — — 397 — — 397 Total $ 47,560 $ 228 $ 440 $ 47,348 $ 56,952 $ 437 $ 268 $ 57,121 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 15,992 $ — $ 292 $ 15,700 $ 17,028 $ — $ 143 $ 16,885 Mortgage-backed securities 17,443 1 652 16,792 16,651 22 225 16,448 Total U.S. Treasury and federal agencies 33,435 1 944 32,492 33,679 22 368 33,333 Asset-backed securities: Student loans (1) 2,892 44 8 2,928 3,047 32 9 3,070 Credit cards 710 1 — 711 798 2 — 800 Other 1 — — 1 1 — — 1 Total asset-backed securities 3,603 45 8 3,640 3,846 34 9 3,871 Non-U.S. debt securities: Mortgage-backed securities 727 82 5 804 939 82 6 1,015 Asset-backed securities 231 — — 231 263 1 — 264 Government securities 404 2 — 406 474 2 — 476 Other 47 — — 47 48 — — 48 Total non-U.S. debt securities 1,409 84 5 1,488 1,724 85 6 1,803 Collateralized mortgage obligations 1,147 45 7 1,185 1,209 45 6 1,248 Total $ 39,594 $ 175 $ 964 $ 38,805 $ 40,458 $ 186 $ 389 $ 40,255 (1) Primarily composed of securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans. (2) As of June 30, 2018 and December 31, 2017 , the fair value of other non-U.S. debt securities was primarily composed of $1,959 million and $3,537 million , respectively, of covered bonds and $1,735 million and $1,885 million , respectively, of corporate bonds. (3) As of June 30, 2018 and December 31, 2017, the fair value of State and Political subdivisions includes securities in trusts of $1,207 million and $1,247 million , respectively. Additional information about these trusts is provided in Note 11 to the consolidated financial statements in this Form 10-Q. (4) During the first quarter of 2018, we adopted ASU 2016-01. For additional information see Note 1. Aggregate investment securities with carrying values of approximately $33 billion and $48 billion as of June 30, 2018 and December 31, 2017 , respectively, were designated as pledged for public and trust deposits, short-term borrowings and for other purposes as provided by law. In the six months ended June 30, 2018 , we sold approximately $16 billion of AFS, primarily asset-backed securities, municipal bonds and covered bonds, resulting in a net pre-tax gain of approximately $8 million . The following tables present the aggregate fair values of AFS and HTM investment securities that have been in 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 longer, as of the dates indicated: Less than 12 months 12 months or longer Total June 30, 2018 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In millions) Available-for-sale: U.S. Treasury and federal agencies: Mortgage-backed securities $ 7,776 $ 136 $ 3,030 $ 151 $ 10,806 $ 287 Total U.S. Treasury and federal agencies 7,776 136 3,030 151 10,806 287 Asset-backed securities: Student loans 309 1 192 — 501 1 Credit cards 491 23 — — 491 23 CLOs 326 1 — — 326 1 Total asset-backed securities 1,126 25 192 — 1,318 25 Non-U.S. debt securities: Mortgage-backed securities 756 2 63 — 819 2 Government securities 6,216 48 — — 6,216 48 Other 1,254 15 56 1 1,310 16 Total non-U.S. debt securities 8,226 65 119 1 8,345 66 State and political subdivisions 563 7 233 6 796 13 Collateralized mortgage obligations 232 4 70 2 302 6 Other U.S. debt securities 1,382 36 113 7 1,495 43 Total $ 19,305 $ 273 $ 3,757 $ 167 $ 23,062 $ 440 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 12,528 $ 246 $ 3,172 $ 46 $ 15,700 $ 292 Mortgage-backed securities 11,090 320 5,606 332 16,696 652 Total U.S. Treasury and federal agencies 23,618 566 8,778 378 32,396 944 Asset-backed securities: Student loans 99 1 559 7 658 8 Total asset-backed securities 99 1 559 7 658 8 Non-U.S. debt securities: Mortgage-backed securities 93 1 133 4 226 5 Total non-U.S. debt securities 93 1 133 4 226 5 Collateralized mortgage obligations 2 — 238 7 240 7 Total $ 23,812 $ 568 $ 9,708 $ 396 $ 33,520 $ 964 Less than 12 months 12 months or longer Total December 31, 2017 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In millions) Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ — $ — $ 67 $ 1 $ 67 $ 1 Mortgage-backed securities 5,161 31 3,341 98 8,502 129 Total U.S. Treasury and federal agencies 5,161 31 3,408 99 8,569 130 Asset-backed securities: Student loans — — 769 4 769 4 Credit cards 1,289 25 — — 1,289 25 Total asset-backed securities 1,289 25 769 4 2,058 29 Non-U.S. debt securities: Mortgage-backed securities 1,059 4 469 1 1,528 5 Government securities 7,629 48 68 1 7,697 49 Other 816 4 289 2 1,105 6 Total non-U.S. debt securities 9,504 56 826 4 10,330 60 State and political subdivisions 734 6 901 17 1,635 23 Collateralized mortgage obligations 399 5 136 4 535 9 Other U.S. debt securities 1,007 8 345 7 1,352 15 U.S. equity securities — — 6 2 6 2 Total $ 18,094 $ 131 $ 6,391 $ 137 $ 24,485 $ 268 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 14,439 $ 109 $ 2,447 $ 34 $ 16,886 $ 143 Mortgage-backed securities 6,785 38 5,988 187 12,773 225 Total U.S. Treasury and federal agencies 21,224 147 8,435 221 29,659 368 Asset-backed securities: Student loans 440 3 423 6 863 9 Total asset-backed securities 440 3 423 6 863 9 Non-U.S. debt securities: Mortgage-backed securities — — 239 6 239 6 Total non-U.S. debt securities — — 239 6 239 6 Collateralized mortgage obligations — — 276 6 276 6 Total $ 21,664 $ 150 $ 9,373 $ 239 $ 31,037 $ 389 The following table presents contractual maturities of debt investment securities by carrying amount as of June 30, 2018 . The maturities of certain ABS, MBS, and CMOs are based on expected principal payments. Actual maturities may differ from these expected maturities since certain borrowers have the right to prepay obligations with or without prepayment penalties. June 30, 2018 Under 1 Year 1 to 5 Years 6 to 10 Years Over 10 Years Total (In millions) Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 11 $ — $ — $ — $ 11 Mortgage-backed securities 105 621 2,708 12,459 15,893 Total U.S. Treasury and federal agencies 116 621 2,708 12,459 15,904 Asset-backed securities: Student loans 56 366 457 688 1,567 Credit cards — 491 126 — 617 CLOs 100 589 142 20 851 Total asset-backed securities 156 1,446 725 708 3,035 Non-U.S. debt securities: Mortgage-backed securities 223 1,807 195 390 2,615 Asset-backed securities 155 712 650 140 1,657 Government securities 2,279 4,422 6,103 268 13,072 Other 1,232 2,478 705 37 4,452 Total non-U.S. debt securities 3,889 9,419 7,653 835 21,796 State and political subdivisions 406 1,284 1,786 752 4,228 Collateralized mortgage obligations — 16 — 303 319 Other U.S. debt securities 76 1,281 709 — 2,066 Total $ 4,643 $ 14,067 $ 13,581 $ 15,057 $ 47,348 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 3,205 $ 12,725 $ 13 $ 49 $ 15,992 Mortgage-backed securities 10 185 1,467 15,781 17,443 Total U.S. Treasury and federal agencies 3,215 12,910 1,480 15,830 33,435 Asset-backed securities: Student loans 32 276 226 2,358 2,892 Credit cards 173 537 — — 710 Other — — — 1 1 Total asset-backed securities 205 813 226 2,359 3,603 Non-U.S. debt securities: Mortgage-backed securities 94 140 21 472 727 Asset-backed securities — 231 — — 231 Government securities 287 117 — — 404 Other 47 — — — 47 Total non-U.S. debt securities 428 488 21 472 1,409 Collateralized mortgage obligations 5 418 49 675 1,147 Total $ 3,853 $ 14,629 $ 1,776 $ 19,336 $ 39,594 The following table presents a roll-forward with respect to net impairment losses that have been recognized in income for the periods indicated. Six Months Ended June 30, (In millions) 2018 2017 Balance, beginning of period $ 64 $ 66 Additions: Losses for which OTTI was previously recognized 1 — Deductions: Previously recognized losses related to securities sold or matured — (2 ) Balance, end of period $ 65 $ 64 Interest income related to debt securities is recognized in our consolidated statement of income using the effective interest method, or on a basis approximating a level rate of return over the contractual or estimated life of the security. The level rate of return considers any non-refundable fees or costs, as well as purchase premiums or discounts, resulting in amortization or accretion, accordingly. For certain debt securities acquired which are considered to be beneficial interests in securitized financial assets, the excess of our estimate of undiscounted future cash flows from these securities over their initial recorded investment is accreted into interest income on a level-yield basis over the securities’ estimated remaining terms. Subsequent decreases in these securities’ expected future cash flows are either recognized prospectively through an adjustment of the yields on the securities over their remaining terms, or are evaluated for OTTI. Increases in expected future cash flows are recognized prospectively over the securities’ estimated remaining terms through the recalculation of their yields. Impairment We conduct periodic reviews of individual securities to assess whether OTTI exists. For additional information about the review of securities for impairment, refer to pages 144 to146 in Note 3 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K. We recorded approximately $1 million of OTTI in both the three and six months ended June 30, 2018 , and less than $1 million of OTTI in both of the same periods in 2017 , which resulted from adverse changes in the timing of expected future cash flows from the securities. After a review of the investment portfolio, taking into consideration current economic conditions, adverse situations that might affect our ability to fully collect principal and interest, the timing of future payments, the credit quality and performance of the collateral underlying MBS and ABS and other relevant factors, management considers the aggregate decline in fair value of the investment securities portfolio and the resulting gross pre-tax unrealized losses of $1,404 million related to 1,118 securities as of June 30, 2018 to be temporary, and not the result of any material changes in the credit characteristics of the securities. |
Loans and Leases
Loans and Leases | 6 Months Ended |
Jun. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Leases | Loans and Leases We segregate our loans and leases into three segments: commercial and financial loans, commercial real estate loans and lease financing. We further classify commercial and financial loans as loans to investment funds, senior secured bank loans, loans to municipalities and other. These classifications reflect their risk characteristics, their initial measurement attributes and the methods we use to monitor and assess credit risk. For additional information on our loans and leases, including our internal risk-rating system used to assess our risk of credit loss for each loan or lease, refer to pages 147 to 149 in Note 4 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K. The following table presents our recorded investment in loans and leases, by segment, as of the dates indicated: (In millions) June 30, 2018 December 31, 2017 Domestic: Commercial and financial: Loans to investment funds $ 13,359 $ 13,618 Senior secured bank loans 3,053 2,923 Loans to municipalities 1,773 2,105 Other 42 50 Commercial real estate 285 98 Lease financing 78 267 Total domestic 18,590 19,061 Non-U.S.: Commercial and financial: Loans to investment funds 4,535 3,213 Senior secured bank loans 646 624 Lease financing 353 396 Total non-U.S. 5,534 4,233 Total loans and leases 24,124 23,294 Allowance for loan and lease losses (55 ) (54 ) Loans and leases, net of allowance $ 24,069 $ 23,240 The commercial and financial segment is composed of primarily floating-rate loans to mutual fund clients, purchased senior secured bank loans and loans to municipalities. Investment fund lending is composed of short-duration revolving credit lines providing liquidity to fund clients in support of their transaction flows associated with securities' settlement activities. Certain loans are pledged as collateral for access to the Federal Reserve's discount window. As of June 30, 2018 and December 31, 2017 , the loans pledged as collateral totaled $5.2 billion and $1.9 billion , respectively. The following tables present our recorded investment in each class of loans and leases by credit quality indicator as of the dates indicated: June 30, 2018 Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases (In millions) Investment grade (1) $ 18,182 $ 285 $ 430 $ 18,897 Speculative (2) 5,227 — — 5,227 Total (4) $ 23,409 $ 285 $ 430 $ 24,124 December 31, 2017 Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases (In millions) Investment grade (1) $ 17,866 $ 98 $ 663 $ 18,627 Speculative (2) 4,638 — — 4,638 Special mention (3) 29 — — 29 Total (4) $ 22,533 $ 98 $ 663 $ 23,294 (1) Investment-grade loans and leases consist of counterparties with strong credit quality and low expected credit risk and probability of default. Ratings apply to counterparties with a strong capacity to support the timely repayment of any financial commitment. (2) Speculative loans and leases consist of counterparties that face ongoing uncertainties or exposure to business, financial, or economic downturns. However, these counterparties may have financial flexibility or access to financial alternatives, which allow for financial commitments to be met. (3) Special mention loans and leases consist of counterparties with potential weakness that, if uncorrected, may result in deterioration of repayment prospects. (4) For those portfolios where there are a small number of loans each with a large balance, we review each loan annually for indicators of impairment. For those loans where no such indicators are identified, the loans are collectively evaluated for impairment. As of June 30, 2018 and December 31, 2017 , there were no indicators of impairment. As of June 30, 2018 and December 31, 2017 , we had no impaired loans and leases, no loans or leases on non-accrual status and no loans or leases 90 days or more contractually past due. In certain circumstances, we restructure troubled loans by granting concessions to borrowers experiencing financial difficulty. Once restructured, the loans are generally considered impaired until their maturity, regardless of whether the borrowers perform under the modified terms of the loans. There were no loans modified in troubled debt restructurings during the six months ended June 30, 2018 and the year ended December 31, 2017 . Allowance for loan and lease losses The following table presents activity in the allowance for loan and lease losses for the periods indicated: Three Months Ended June 30, (In millions) 2018 2017 Allowance for loan and lease losses (1) : Beginning balance $ 54 $ 51 Provision for loan and lease losses 2 3 Charge-offs (1 ) — Ending balance $ 55 $ 54 Six Months Ended June 30, (In millions) 2018 2017 Allowance for loan and lease losses (1) : Beginning balance $ 54 $ 53 Provision for loan and lease losses 2 1 Charge-offs (1 ) — Ending balance $ 55 $ 54 (1) The provisions and charge-offs for loans and leases were attributable to exposure to senior secured loans to non-investment grade borrowers, purchased in connection with our participation in syndicated loans. Loans and leases are reviewed on a regular basis, and any provisions for loan and lease losses that are recorded reflect management's estimate of the amount necessary to maintain the allowance for loan and lease losses at a level considered appropriate to absorb estimated incurred losses in the loan and lease portfolio. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table presents changes in the carrying amount of goodwill during the periods indicated: (In millions) Investment Servicing Investment Management Total Goodwill: Ending balance December 31, 2016 $ 5,550 $ 264 $ 5,814 Acquisitions 17 — 17 Divestitures and other reductions (9 ) — (9 ) Foreign currency translation 194 6 200 Ending balance December 31, 2017 5,752 270 6,022 Foreign currency translation (47 ) (2 ) (49 ) Ending balance June 30, 2018 $ 5,705 $ 268 $ 5,973 The following table presents changes in the net carrying amount of other intangible assets during the periods indicated: (In millions) Investment Servicing Investment Management Total Other intangible assets: Ending balance December 31, 2016 $ 1,539 $ 211 $ 1,750 Acquisitions 16 — 16 Divestitures (11 ) — (11 ) Amortization (183 ) (31 ) (214 ) Foreign currency translation and other, net 71 1 72 Ending balance December 31, 2017 1,432 181 1,613 Amortization (83 ) (15 ) (98 ) Foreign currency translation and other, net (15 ) — (15 ) Ending balance June 30, 2018 $ 1,334 $ 166 $ 1,500 The following table presents the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets by type as of the dates indicated: June 30, 2018 December 31, 2017 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Other intangible assets: Client relationships $ 2,633 $ (1,521 ) $ 1,112 $ 2,669 $ (1,470 ) $ 1,199 Core deposits 681 (335 ) 346 686 (320 ) 366 Other 136 (94 ) 42 142 (94 ) 48 Total $ 3,450 $ (1,950 ) $ 1,500 $ 3,497 $ (1,884 ) $ 1,613 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2018 | |
Other Assets [Abstract] | |
Other Assets | Other Assets The following table presents the components of other assets as of the dates indicated: (In millions) June 30, 2018 December 31, 2017 Securities borrowed (1) $ 22,789 $ 19,404 Derivative instruments, net 6,151 4,013 Bank-owned life insurance 3,285 3,242 Investments in joint ventures and other unconsolidated entities (2) 2,791 2,259 Collateral, net 2,263 473 Receivable for securities settlement 813 188 Prepaid expenses 425 364 Accounts receivable 339 348 Deposits with clearing organizations 131 120 Deferred tax assets, net of valuation allowance (3) 109 113 Income taxes receivable 44 97 Other (4) 414 397 Total $ 39,554 $ 31,018 (1) Refer to Note 8 for further information on the impact of collateral on our financial statement presentation of securities borrowing and securities lending transactions. (2) Includes certain equity securities held at fair value through profit and loss that were transferred from AFS as part of our adoption of ASU 2016-01. Refer to Note 1 for further information on this new accounting standard. (3) Deferred tax assets and liabilities recorded in our consolidated statement of condition are netted within the same tax jurisdiction. (4) Includes amounts held in escrow accounts at third parties related to the negotiated settlements in the transition management legal matter presented in Note 10 . |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative financial instruments to support our clients' needs and to manage our interest-rate and currency risk. In undertaking these activities, we assume positions in both the foreign exchange and interest-rate markets by buying and selling cash instruments and using derivative financial instruments, including foreign exchange forward contracts, foreign exchange options and interest-rate contracts. For information on our derivative instruments, including the related accounting policies, refer to pages 153 to 159 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K. Derivative financial instruments are also subject to credit and counterparty risk, which we manage by performing credit reviews, maintaining individual counterparty limits, entering into netting arrangements and requiring the receipt of collateral. Cash collateral received from and provided to counterparties in connection with derivative financial instruments is recorded in accrued expenses and other liabilities and other assets, respectively, in our consolidated statement of condition. As of June 30, 2018 and December 31, 2017 , we had recorded approximately $3.23 billion and $2.55 billion , respectively, of cash collateral received from counterparties and approximately $5.06 billion and $869 million , respectively, of cash collateral provided to counterparties in connection with derivative financial instruments in our consolidated statement of condition. Certain of our derivative assets and liabilities as of June 30, 2018 and December 31, 2017 are subject to master netting agreements with our derivative counterparties. Certain of these agreements contain credit risk-related contingent features in which the counterparty has the right to declare us in default and accelerate cash settlement of our net derivative liabilities with the counterparty in the event that our credit rating falls below specified levels. The aggregate fair value of all derivative instruments with credit risk-related contingent features that were in a net liability position as of June 30, 2018 totaled approximately $2.27 billion , against which we provided $85 million in underlying collateral. If our credit rating were downgraded below levels specified in the agreements, the maximum additional amount of payments related to termination events that could have been required pursuant to these contingent features, assuming no change in fair value, as of June 30, 2018 was approximately $2.19 billion . Such accelerated settlement would be at fair value and therefore not affect our consolidated results of operations. Derivatives Not Designated as Hedging Instruments In connection with our trading activities, we use derivative financial instruments in our role as a financial intermediary and as both a manager and servicer of financial assets, in order to accommodate our clients' investment and risk management needs. In addition, we use derivative financial instruments for risk management purposes as economic hedges, which are not formally designated as accounting hedges, in order to contribute to our overall corporate earnings and liquidity. These activities are designed to generate trading services revenue and to manage volatility in our NII. The level of market risk that we assume is a function of our overall objectives and liquidity needs, our clients' requirements and market volatility. For additional information on derivatives not designated as hedging instruments, refer to pages 154 to 155 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K. Derivatives Designated as Hedging Instruments In connection with our asset and liability management activities, we use derivative financial instruments to manage our interest rate risk and foreign currency risk. Interest rate risk, defined as the sensitivity of income or financial condition to variations in interest rates, is a significant non-trading market risk to which our assets and liabilities are exposed. We manage our interest rate risk by identifying, quantifying and hedging our exposures, using fixed-rate portfolio securities and a variety of derivative financial instruments, most frequently interest-rate swaps. Interest rate swap agreements alter the interest-rate characteristics of specific balance sheet assets or liabilities. We use foreign exchange forward and swap contracts to hedge foreign exchange exposure to various foreign currencies with respect to certain assets and liabilities. Our hedging relationships are formally designated, and qualify for hedge accounting, as fair value, cash flow or net investment hedges. For additional information on derivatives designated as hedging instruments, refer to pages 155 to 159 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K. Fair Value Hedges We have entered into interest rate swap agreements to modify our interest income from certain AFS investment securities from a fixed rate to a floating rate. The hedged AFS investment securities included hedged trusts that had a weighted-average life of approximately 3.6 years as of June 30, 2018 , compared to 4.6 years as of December 31, 2017 . We have entered into interest rate swap agreements to modify our interest expense on eight senior notes and one subordinated note from fixed rates to floating rates. The senior and subordinated notes are hedged with interest rate swap contracts with notional amounts, maturities and fixed-rate coupon terms that effectively hedge the fixed-rate notes. The table below summarizes the maturities and the fixed interest rates paid for the hedged senior and subordinated notes: June 30, 2018 Maturity Fixed Interest Rate Paid Senior Notes 2020 2.55% 2021 4.38 2021 1.95 2022 2.65 2023 3.70 2024 3.30 2025 3.55 2026 2.65 Subordinated Notes 2023 3.10 As of January 1, 2018, we prospectively changed the presentation of gains (losses) on hedging instruments and hedge items designated as fair value hedges of interest rate risk, and any resulting hedge ineffectiveness, from processing fees and other revenue to NII. The change was made prospectively and prior periods have not been adjusted. We have entered into foreign exchange swap contracts to hedge the change in fair value attributable to foreign exchange movements in our foreign currency denominated investment securities and deposits. These forward contracts convert the foreign currency risk to U.S. dollars, thereby mitigating our exposure to fluctuations in the fair value of the securities and deposits attributable to changes in foreign exchange rates. Cash Flow Hedges We have entered into foreign exchange contracts to hedge the change in cash flows attributable to foreign exchange movements in foreign currency denominated investment securities. These foreign exchange contracts convert the foreign currency risk to U.S. dollars, thereby mitigating our exposure to fluctuations in the cash flows of the securities attributable to changes in foreign exchange rates. We have entered into interest rate swap agreements to hedge the forecasted cash flows associated with LIBOR-indexed floating-rate loans. The interest rate swaps synthetically convert the loan interest receipts from a variable-rate to a fixed-rate, thereby mitigating the risk attributable to changes in the LIBOR benchmark rate. As of June 30, 2018 , the maximum maturity date of the underlying loans is approximately 4 years . Net Investment Hedges We have entered into foreign exchange contracts to protect the net investment in our foreign operations against adverse changes in exchange rates. These forward contracts convert the foreign currency risk to U.S. dollars, thereby mitigating our exposure to fluctuations in the fair value of our net investments in our foreign operations attributable to changes in foreign exchange rates. The changes in fair value of the foreign exchange forward contracts are recorded, net of taxes, in the foreign currency translation component of other comprehensive income. Effectiveness of net investment hedges is based on the overall changes in the fair value of the forward contracts. The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments entered into in connection with our trading and asset-and-liability management activities as of the dates indicated: (In millions) June 30, December 31, 2017 Derivatives not designated as hedging instruments: Interest-rate contracts: Futures $ 5,906 $ 2,392 Foreign exchange contracts: Forward, swap and spot 2,224,255 1,679,976 Options purchased 752 350 Options written 419 302 Futures 10 50 Commodity and equity contracts: Commodity (1) 53 16 Equity (1) 68 50 Other: Stable value contracts 26,252 26,653 Deferred value awards (2) 558 473 Derivatives designated as hedging instruments: Interest-rate contracts: Swap agreements 11,316 11,047 Foreign exchange contracts: Forward and swap 3,996 28,913 (1) Primarily composed of positions held by a consolidated sponsored investment fund, more fully described in Note 11. (2) Represents grants of deferred value awards to employees; refer to refer to pages 154 to 155 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K . In connection with our asset and liability management activities, we have entered into interest-rate contracts designated as fair value and cash flow hedges to manage our interest rate risk. The following tables present the aggregate notional amounts of these interest rate contracts and the related assets or liabilities being hedged as of the dates indicated: June 30, 2018 (In millions) Fair Value Hedges Cash Total Investment securities available-for-sale $ 1,223 $ — $ 1,223 Long-term debt (1) 8,493 — 8,493 Floating-rate loans — 1,600 1,600 Total $ 9,716 $ 1,600 $ 11,316 December 31, 2017 (In millions) Fair Value Hedges Cash Total Investment securities available-for-sale $ 1,254 $ — $ 1,254 Long-term debt (1) 8,493 — 8,493 Floating rate loans — 1,300 1,300 Total $ 9,747 $ 1,300 $ 11,047 (1) As of June 30, 2018 , these fair value hedges decreased the carrying value of LTD presented in our consolidated statement of condition by $301 million . As of December 31, 2017 , these fair value hedges decreased the carrying value of long-term debt presented in our consolidated statement of condition by $87 million . The following table presents the contractual and weighted average interest rates for long-term debt, which include the effects of the fair value hedges presented in the table above, for the periods indicated: Three Months Ended June 30, 2018 2017 Contractual Rates Rate Including Impact of Hedges Contractual Rates Rate Including Impact of Hedges Long-term debt 3.52 % 3.66 % 3.34 % 2.61 % Six Months Ended June 30, 2018 2017 Contractual Rate Contractual Rate Long-term debt 3.61 % 3.51 % 3.37 % 2.58 % The following tables present the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 8 to the consolidated financial statements in this Form 10-Q. Derivative Assets (1) Fair Value (In millions) June 30, December 31, 2017 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 17,332 $ 11,477 Other derivative contracts 2 1 Total $ 17,334 $ 11,478 Derivatives designated as hedging instruments: Foreign exchange contracts $ 48 $ 120 Interest-rate contracts — 8 Total $ 48 $ 128 (1) Derivative assets are included within other assets in our consolidated statement of condition. Derivative Liabilities (1) Fair Value (In millions) June 30, December 31, 2017 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 17,470 $ 11,361 Other derivative contracts 270 284 Total $ 17,740 $ 11,645 Derivatives designated as hedging instruments: Foreign exchange contracts $ 88 $ 107 Interest-rate contracts 106 100 Total $ 194 $ 207 (1) Derivative liabilities are included within other liabilities in our consolidated statement of condition. The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated: Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Three Months Ended June 30, Six Months Ended June 30, (In millions) 2018 2017 2018 2017 Derivatives not designated as hedging instruments: Foreign exchange contracts Trading services revenue $ 195 $ 170 $ 379 $ 333 Foreign exchange contracts Processing fees and other revenue (1) — (9 ) — (2 ) Foreign exchange contracts Interest expense (1) — — (15 ) — Interest-rate contracts Trading services revenue (2 ) 8 (4 ) 9 Other derivative contracts Trading services revenue (1 ) — — — Other derivative contracts Compensation and employee benefits (42 ) (29 ) (106 ) (95 ) Total $ 150 $ 140 $ 254 $ 245 (1) The first six months of 2018 includes approximately $15 million of swap costs related to the first quarter of 2018 that were reclassified from Processing fees and other revenues to NII. Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income Amount of Gain (Loss) on Derivatives Recognized in Consolidated Statement of Income Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, (In millions) 2018 2017 2018 2017 2018 2017 Derivatives designated as cash flow hedges: Interest-rate contracts $ (8 ) $ (1 ) Net interest income $ — $ — Net interest income $ — $ — Foreign exchange contracts 57 14 Net interest income — — Net interest income 7 7 $ 49 $ 13 $ — $ — $ 7 $ 7 Derivatives designated as net investment hedges: Foreign exchange contracts 71 (87 ) Gains (Losses) related to investment securities, net — — Gains (Losses) related to investment securities, net — — Total $ 71 $ (87 ) Total $ — $ — Total $ — $ — Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income Amount of Gain (Loss) on Derivatives Recognized in Consolidated Statement of Income Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, (In millions) 2018 2017 2018 2017 2018 2017 Derivatives designated as cash flow hedges: Interest-rate contracts $ (29 ) $ (1 ) Net interest income $ — $ — Net interest income $ 1 $ — Foreign exchange contracts (38 ) (92 ) Net interest income — — Net interest income 14 13 $ (67 ) $ (93 ) $ — $ — $ 15 $ 13 Derivatives designated as net investment hedges: Foreign exchange contracts 35 (101 ) Gains (Losses) related to investment securities, net — — Gains (Losses) related to investment securities, net — — Total $ 35 $ (101 ) Total $ — $ — Total $ — $ — Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income Three Months Ended June 30, Three Months Ended June 30, (In millions) 2018 2017 2018 2017 Derivatives designated as fair value hedges: Foreign exchange contracts Processing fees and $ (30 ) $ 4 Investment securities Processing fees and $ 30 $ (4 ) Foreign exchange contracts Processing fees and other revenue (601 ) 102 FX deposit Processing fees and other revenue 601 (101 ) Interest-rate contracts (1) Net interest income 10 — Available-for-sale securities Net interest income (2) (9 ) — Interest-rate contracts (1) Net interest income (47 ) — Long-term debt Net interest income 44 — Interest-rate contracts (1) Processing fees and — 3 Available-for-sale securities Processing fees and (2) — (2 ) Interest-rate contracts (1) Processing fees and other revenue — 64 Long-term debt Processing fees and other revenue — (63 ) Total $ (668 ) $ 173 $ 666 $ (170 ) Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain Six Months Ended June 30, Six Months Ended June 30, (In millions) 2018 2017 2018 2017 Derivatives designated as fair value hedges: Foreign exchange contracts Processing fees and $ (43 ) $ 2 Investment securities Processing fees and $ 43 $ (2 ) Foreign exchange contracts Processing fees and other revenue (353 ) 1,081 FX deposit Processing fees and other revenue 353 (1,081 ) Interest-rate contracts (1) Net interest income 31 — Available-for-sale securities Net interest income (3) (30 ) — Interest-rate contracts (1) Net interest income (214 ) — Long-term debt Net interest income 200 — Interest-rate contracts (1) Processing fees and — 15 Available-for-sale securities Processing fees and (3) — (13 ) Interest-rate contracts (1) Processing fees and other revenue — 44 Long-term debt Processing fees and other revenue — (44 ) Total $ (579 ) $ 1,142 $ 566 $ (1,140 ) (1) As of January 1, 2018, we prospectively changed the presentation of gains (losses) on hedging instruments and hedge items designated as fair value hedges of interest rate risk, and any resulting hedge ineffectiveness, from processing fees and other revenue to NII. (2) In the three months ended June 30, 2018 and 2017 , $5 million and $3 million , respectively, of net unrealized (losses) gains on AFS investment securities designated in fair value hedges were recognized in OCI. |
Offsetting Arrangements
Offsetting Arrangements | 6 Months Ended |
Jun. 30, 2018 | |
Offsetting [Abstract] | |
Offsetting Arrangements | Offsetting Arrangements We manage credit and counterparty risk by entering into enforceable netting agreements and other collateral arrangements with counterparties to derivative contracts and secured financing transactions, including resale and repurchase agreements, and principal securities borrowing and lending agreements. These netting agreements mitigate our counterparty credit risk by providing for a single net settlement with a counterparty of all financial transactions covered by the agreement in an event of default as defined under such agreement. In limited cases, a netting agreement may also provide for the periodic netting of settlement payments with respect to multiple different transaction types in the normal course of business. For additional information on offsetting arrangements, refer to pages 160 to 163 in Note 11 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K. As of June 30, 2018 and December 31, 2017 , the value of securities received as collateral from third parties where we are permitted to transfer or re-pledge the securities totaled $9.60 billion and $2.47 billion , respectively, and the fair value of the portion that had been transferred or re-pledged as of the same dates was $6.68 billion and $15 million , respectively. The increase in 2018 primarily relates to a portion of underlying client assets related to our enhanced custody business, which assets clients have allowed us to transfer or re-pledge. The following tables present information about the offsetting of assets related to derivative contracts and secured financing transactions, as of the dates indicated: Assets: June 30, 2018 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 17,380 $ (9,674 ) $ 7,706 $ — $ 7,706 Interest-rate contracts (6) — — — — — Other derivative contracts 2 — 2 — 2 Cash collateral and securities netting NA (1,557 ) (1,557 ) (100 ) (1,657 ) Total derivatives 17,382 (11,231 ) 6,151 (100 ) 6,051 Other financial instruments: Resale agreements and securities borrowing (7) 73,482 (47,108 ) 26,372 (26,063 ) 310 Total derivatives and other financial instruments $ 90,864 $ (58,339 ) $ 32,523 $ (26,163 ) $ 6,361 Assets: December 31, 2017 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 11,597 $ (5,548 ) $ 6,049 $ — $ 6,049 Interest-rate contracts (6) 8 — 8 — 8 Other derivative contracts 1 — 1 — 1 Cash collateral and securities netting NA (2,045 ) (2,045 ) (124 ) (2,169 ) Total derivatives 11,606 (7,593 ) 4,013 (124 ) 3,889 Other financial instruments: Resale agreements and securities borrowing (7) 70,079 (47,434 ) 22,645 (22,645 ) — Total derivatives and other financial instruments $ 81,685 $ (55,027 ) $ 26,658 $ (22,769 ) $ 3,889 (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which is also carried at fair value. For additional information about the measurement basis of these instruments, refer to pages 127 to 138 in Notes 1 and 2 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Includes securities in connection with our securities borrowing transactions. (5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. (6) Variation margin payments presented as settlements rather than collateral. (7) Included in the $26,372 million as of June 30, 2018 were $3,583 million of resale agreements and $22,789 million of collateral provided related to securities borrowing. Included in the $22,645 million as of December 31, 2017 were $3,241 million of resale agreements and $19,404 million of collateral provided related to securities borrowing. Resale agreements and collateral provided related to securities borrowing were recorded in securities purchased under resale agreements and other assets, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions. NA Not applicable The following tables present information about the offsetting of liabilities related to derivative contracts and secured financing transactions, as of the dates indicated: Liabilities: June 30, 2018 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Cash and Securities Provided (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 17,558 $ (9,674 ) $ 7,884 $ — $ 7,884 Interest-rate contracts (6) 106 — 106 — 106 Other derivative contracts 270 — 270 — 270 Cash collateral and securities netting NA (2,934 ) (2,934 ) (330 ) (3,264 ) Total derivatives 17,934 (12,608 ) 5,326 (330 ) 4,996 Other financial instruments: Repurchase agreements and securities lending (7) 61,087 (47,108 ) 13,979 (12,509 ) 1,470 Total derivatives and other financial instruments $ 79,021 $ (59,716 ) $ 19,305 $ (12,839 ) $ 6,466 Liabilities: December 31, 2017 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Cash and Securities Provided (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 11,467 $ (5,548 ) $ 5,919 $ — $ 5,919 Interest-rate contracts (6) 100 — 100 — 100 Other derivative contracts 285 — 285 — 285 Cash collateral and securities netting NA (422 ) (422 ) (450 ) (872 ) Total derivatives 11,852 (5,970 ) 5,882 (450 ) 5,432 Other financial instruments: Repurchase agreements and securities lending (7) 54,127 (47,434 ) 6,693 (4,299 ) 2,394 Total derivatives and other financial instruments $ 65,979 $ (53,404 ) $ 12,575 $ (4,749 ) $ 7,826 (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which is also carried at fair value. For additional information about the measurement basis of these instruments, refer to pages 127 to 138 in Notes 1 and 2 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Includes securities provided in connection with our securities lending transactions. (5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. (6) Variation margin payments presented as settlements rather than collateral. (7) Included in the $13,979 million as of June 30, 2018 were $3,088 million of repurchase agreements and $10,891 million of collateral received related to securities lending transactions. Included in the $6,693 million as of December 31, 2017 were $2,842 million of repurchase agreements and $3,851 million of collateral received related to securities lending transactions. Repurchase agreements and collateral received related to securities lending were recorded in securities sold under repurchase agreements and accrued expenses and other liabilit ies, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions . NA Not applicable The securities transferred under resale and repurchase agreements typically are U.S. Treasury, agency and agency MBS. In our principal securities borrowing and lending arrangements, the securities transferred are predominantly equity securities and some corporate debt securities. The fair value of the securities transferred may increase in value to an amount greater than the amount received under our repurchase and securities lending arrangements, which exposes the Company with counterparty risk. We require the review of the price of the underlying securities in relation to the carrying value of the repurchase agreements and securities lending arrangements on a daily basis and when appropriate, adjust the cash or security to be obtained or returned to counterparties that is reflective of the required collateral levels. The following table summarizes our enhanced custody repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated: Remaining Contractual Maturity of the Agreements As of June 30, 2018 As of December 31, 2017 (1) (In millions) Overnight and Continuous Up to 30 Days Total Overnight and Continuous Repurchase agreements: U.S. Treasury and agency securities $ 45,123 $ — $ 45,123 $ 43,072 Total 45,123 — 45,123 43,072 Securities lending transactions: US Treasury and agency securities 115 — 115 — Corporate debt securities 88 — 88 35 Equity securities 8,596 165 8,761 11,020 Other (2) 7,000 — 7,000 — Total 15,799 165 15,964 11,055 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 60,922 $ 165 $ 61,087 $ 54,127 (1) As of December 31, 2017 , there were no balances with contractual maturities up to 30 days. (2) Represents a portion of underlying client assets related to our enhanced custody business, which assets clients have allowed us to transfer and re-pledge. |
Commitments and Guarantees
Commitments and Guarantees | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Guarantees | Commitments and Guarantees For additional information about our commitments and guarantees, refer to pages 164 to 165 in Note 12 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K. The following table presents the aggregate gross contractual amounts of our off-balance sheet commitments and off-balance sheet guarantees as of the dates indicated. (In millions) June 30, 2018 December 31, 2017 Commitments: Unfunded credit facilities $ 26,654 $ 26,488 Guarantees (1) : Indemnified securities financing $ 396,801 $ 381,817 Stable value protection 26,252 26,653 Standby letters of credit 2,955 3,158 (1) The potential losses associated with these guarantees equal the gross contractual amounts and do not consider the value of any collateral or reflect any participations to independent third parties. Unfunded Credit Facilities Unfunded credit facilities consist of liquidity facilities for our fund and municipal lending clients and undrawn lines of credit related to senior secured bank loans. As of June 30, 2018 , approximately 72% of our unfunded commitments to extend credit expire within one year. Since many of these commitments are expected to expire or renew without being drawn upon, the gross contractual amounts do not necessarily represent our future cash requirements. Indemnified Securities Financing On behalf of our clients, we lend their securities, as agent, to brokers and other institutions. In most circumstances, we indemnify our clients for the fair market value of those securities against a failure of the borrower to return such securities. The following table summarizes the aggregate fair values of indemnified securities financing and related collateral, as well as collateral invested in indemnified repurchase agreements, as of the dates indicated: (In millions) June 30, 2018 December 31, 2017 Fair value of indemnified securities financing $ 396,801 $ 381,817 Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing 416,084 400,828 Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements 59,391 61,270 Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements 63,016 65,272 In certain cases, we participate in securities finance transactions as a principal. As a principal, we borrow securities from the lending client and then lend such securities to the subsequent borrower, either our client or a broker/dealer. Our right to receive and obligation to return collateral in connection with our securities lending transactions are recorded in other assets and other liabilities, respectively, in our consolidated statement of condition. As of June 30, 2018 and December 31, 2017 , we had approximately $22.79 billion and $19.40 billion , respectively, of collateral provided and approximately $10.89 billion and $3.85 billion , respectively, of collateral received from clients in connection with our participation in principal securities finance transactions. Stable Value Protection In the normal course of our business, we offer products that provide book-value protection, primarily to plan participants in stable value funds managed by non-affiliated investment managers of post-retirement defined contribution benefit plans, particularly 401(k) plans. The book-value protection is provided on portfolios of intermediate investment grade fixed-income securities, and is intended to provide safety and stable growth of principal invested. The protection is intended to cover any shortfall in the event that a significant number of plan participants withdraw funds when book value exceeds market value and the liquidation of the assets is not sufficient to redeem the participants. The investment parameters of the underlying portfolios, combined with structural protections, are designed to provide cushion and guard against payments even under extreme stress scenarios. These contingencies are individually accounted for as derivative financial instruments. The notional amounts of the stable value contracts are presented as “derivatives not designated as hedging instruments” in the table of aggregate notional amounts of derivative financial instruments provided in Note 7 to the consolidated financial statements in this Form 10-Q. We have not made a payment under these contingencies that we consider material to our consolidated financial condition, and management believes that the probability of payment under these contingencies in the future, that we would consider material to our consolidated financial condition, is remote. Standby Letters of Credit Standby letters of credit provide credit enhancement to our municipal clients to support the issuance of capital markets financing. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal and Regulatory Matters In the ordinary course of business, we and our subsidiaries are involved in disputes, litigation, and governmental or regulatory inquiries and investigations, both pending and threatened. These matters, if resolved adversely against us or settled, may result in monetary awards or payments, fines and penalties or require changes in our business practices. The resolution or settlement of these matters is inherently difficult to predict. Based on our assessment of these pending matters, we do not believe that the amount of any judgment, settlement or other action arising from any pending matter is likely to have a material adverse effect on our consolidated financial condition. However, an adverse outcome in certain of the matters described below could have a material adverse effect on our consolidated results of operations for the period in which such matter is resolved, or an accrual is determined to be required, on our consolidated financial condition, or on our reputation. We evaluate our needs for accruals of loss contingencies related to legal and regulatory proceedings on a case-by-case basis. When we have a liability that we deem probable, and we deem the amount of such liability can be reasonably estimated as of the date of our consolidated financial statements, we accrue our estimate of the amount of loss. We also consider a loss probable and establish an accrual when we make, or intend to make, an offer of settlement. Once established, an accrual is subject to subsequent adjustment as a result of additional information. The resolution of legal and regulatory proceedings and the amount of reasonably estimable loss (or range thereof) are inherently difficult to predict, especially in the early stages of proceedings. Even if a loss is probable, an amount (or range) of loss might not be reasonably estimated until the later stages of the proceeding due to many factors such as the presence of complex or novel legal theories, the discretion of governmental authorities in seeking sanctions or negotiating resolutions in civil and criminal matters, the pace and timing of discovery and other assessments of facts and the procedural posture of the matter (collectively, "factors influencing reasonable estimates"). As of June 30, 2018 , our aggregate accruals for loss contingencies for legal and regulatory matters totaled approximately $14 million . To the extent that we have established accruals in our consolidated statement of condition for probable loss contingencies, such accruals may not be sufficient to cover our ultimate financial exposure associated with any settlements or judgments. Any such ultimate financial exposure, or proceedings to which we may become subject in the future, could have a material adverse effect on our businesses, on our future consolidated financial statements or on our reputation. Except where otherwise noted below, we have not established significant accruals with respect to the claims discussed. We have identified certain matters for which loss is reasonably possible (but not probable) in future periods, whether in excess of an accrued liability or where there is no accrued liability, and for which we are able to estimate a range of reasonably possible loss. As of June 30, 2018 , our estimate of the range of reasonably possible loss for these matters is from zero to approximately $45 million in the aggregate. Our estimate with respect to the aggregate range of reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. In certain other pending matters, including claims that represent the substantial majority of the potential exposure with respect to the invoicing matter, the Federal Reserve/Massachusetts Division of Banks written agreement and the shareholder derivative litigation matter discussed below, it is not currently feasible to reasonably estimate the amount or a range of reasonably possible loss (including reasonably possible loss in excess of amounts accrued), and such losses, which may be significant, are not included in the estimate of reasonably possible loss discussed above. This is due to, among other factors, the factors influencing reasonable estimates described above. These factors are particularly prevalent in governmental and regulatory inquiries and investigations. As a result, reasonably possible loss estimates often are not feasible until the later stages of the inquiry or investigation or of any related legal or regulatory proceeding. An adverse outcome in one or more of the matters for which we have not estimated the amount or a range of reasonably possible loss, individually or in the aggregate, could have a material adverse effect on our businesses, on our future consolidated financial statements or on our reputation. Given that we cannot estimate reasonably possible loss for all legal and regulatory proceedings as to which we may be subject now or in the future, including matters that if adversely concluded may present material financial, regulatory and reputational risks, no conclusion as to the ultimate exposure from current pending or potential legal or regulatory proceedings should be drawn from the current estimate of reasonably possible loss. The following discussion provides information with respect to significant legal, governmental and regulatory matters. Invoicing Matter In December 2015, we announced a review of the manner in which we invoiced certain expenses to some of our Investment Servicing clients, primarily in the United States, during an 18-year period going back to 1998, and our determination that we had incorrectly invoiced clients for certain expenses. We continue to implement enhancements to our billing processes, and we are reviewing the conduct of our employees and have taken appropriate steps to address conduct inconsistent with our standards, including, in some cases, termination of employment. In connection with our enhancements to our billing processes, we continue to review historical billing practices and may from time to time identify additional remediation. We currently expect the cumulative total of our payments to customers for these matters to be at least $360 million . In March 2017, a purported class action was commenced against us alleging that our invoicing practices violated duties owed to retirement plan customers under ERISA. In addition, we have received a purported class action demand letter alleging that our invoicing practices were unfair and deceptive under Massachusetts law. A class of customers, or particular customers, may assert that we have not paid to them all amounts incorrectly invoiced, and may seek double or treble damages under Massachusetts law. We are also responding to requests for information from, and are cooperating with investigations by, governmental and regulatory authorities on these matters, including the civil and criminal divisions of the DOJ, the SEC, the DOL and the Massachusetts Attorney General, which could result in significant fines or other sanctions, civil and criminal, against us. If these governmental or regulatory authorities were to conclude that all or a portion of the billing errors merited civil or criminal sanctions, any fine or other penalty could be a significant percentage, or a multiple of, the portion of the overcharging serving as the basis of such a claim or of the full amount overcharged. The governmental and regulatory authorities have significant discretion in civil and criminal matters as to the fines and other penalties they may seek to impose. The severity of such fines or other penalties could take into account factors such as the amount and duration of our incorrect invoicing, the government’s or regulator's assessment of the conduct of our employees, as well as prior conduct such as that which resulted in our January 2017 deferred prosecution agreement in connection with transition management services and our recent settlement of civil claims regarding our indirect foreign exchange business. The SEC has recently requested that we commence settlement discussions to resolve claims the SEC may bring against us relating to our overcharges of registered investment companies. There can be no assurance that any settlement will be reached or, if so, the impact of any such settlement on other claims relating to these matters. The outcome of any of these proceedings and, in particular, any criminal sanction could materially adversely affect our results of operations and could have significant collateral consequences for our business and reputation. Federal Reserve/Massachusetts Division of Banks Written Agreement On June 1, 2015, we entered into a written agreement with the Federal Reserve and the Massachusetts Division of Banks relating to deficiencies identified in our compliance programs with the requirements of the Bank Secrecy Act, AML regulations and U.S. economic sanctions regulations promulgated by OFAC. As part of this enforcement action, we have been required to, among other things, implement improvements to our compliance programs and to retain an independent firm to conduct a review of account and transaction activity to evaluate whether any suspicious activity was not previously reported. If we fail to comply with the terms of the written agreement, we may become subject to fines and other regulatory sanctions, which may have a material adverse effect on us. Shareholder Litigation A State Street shareholder has filed a purported class action complaint against the Company alleging that the Company’s financial statements in its annual reports for the 2011-2014 period were misleading due to the inclusion of revenues associated with the invoicing matter referenced above and the facts surrounding our 2017 settlements with the U.S. government relating to our transition management business. We have agreed in principle to settle this matter on a class basis for $4.9 million , subject to final approval by the Court. In addition, a State Street shareholder has filed a derivative complaint against the Company's past and present officers and directors to recover alleged losses incurred by the Company relating to the invoicing matter and to our Ohio public retirement plans matter. Income Taxes In determining our provision for income taxes, we make certain judgments and interpretations with respect to tax laws in jurisdictions in which we have business operations. Because of the complex nature of these laws, in the normal course of our business, we are subject to challenges from U.S. and non-U.S. income tax authorities regarding the amount of income taxes due. These challenges may result in adjustments to the timing or amount of taxable income or deductions or the allocation of taxable income among tax jurisdictions. We recognize a tax benefit when it is more likely than not that our position will result in a tax deduction or credit. Unrecognized tax benefits of approximately $83 million as of June 30, 2018 decreased from $94 million as of December 31, 2017 . We are presently under audit by a number of tax authorities, and the Internal Revenue Service is currently reviewing our U.S. income tax returns for the tax years 2014 and 2015. The earliest tax year open to examination in jurisdictions where we have material operations is 2011. Management believes that we have sufficiently accrued liabilities as of June 30, 2018 for tax exposures. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities For additional information on our VIEs, refer to pages 167 to 168 in Note 14 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K. Tax Exempt Investment Program In the normal course of our business, we structure and sell certificated interests in pools of tax exempt investment grade assets, principally to our mutual fund clients. We structure these pools as partnership trusts, and the assets and liabilities of the trusts are recorded in our consolidated statement of condition as AFS investment securities and other short term borrowings. As of June 30, 2018 and December 31, 2017 , we carried AFS investment securities, composed of securities related to state and political subdivisions, with a fair value of $1.21 billion and $1.25 billion , respectively, and other short term borrowings of $1.06 billion and $1.08 billion , respectively, in our consolidated statement of condition in connection with these trusts. The interest income and interest expense generated by the investments and certificated interests, respectively, are recorded as components of NII when earned or incurred. The trusts had a weighted average life of approximately 3.61 years as of June 30, 2018 , compared to approximately 4.6 years as of December 31, 2017 . Interests in Investment Funds As of June 30, 2018 , the aggregate assets and liabilities of our consolidated sponsored investment funds totaled $188 million and $88 million , respectively. As of December 31, 2017 , the aggregate assets and liabilities of our consolidated sponsored investment funds totaled $149 million and $50 million , respectively. As of June 30, 2018 , our potential maximum total exposure associated with the consolidated sponsored investment funds totaled $100 million and represented the value of our economic ownership interest in the funds. As of June 30, 2018 and December 31, 2017 , we managed certain funds, considered VIEs, in which we held a variable interest but for which we were not deemed to be the primary beneficiary. Our potential maximum loss exposure related to these unconsolidated funds totaled $72 million as of both June 30, 2018 and December 31, 2017 , and represented the carrying value of our investments, which are recorded in either AFS investment securities or other assets in our consolidated statement of condition. The amount of loss we may recognize during any period is limited to the carrying amount of our investments in the unconsolidated funds. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Preferred Stock The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of June 30, 2018 : Issuance Date Depositary Shares Issued Ownership Interest Per Depositary Share Liquidation Preference Per Share Liquidation Preference Per Depositary Share Net Proceeds of Offering (In millions) Redemption Date (1) Preferred Stock (2) : Series C August 2012 20,000,000 1/4,000th $ 100,000 $ 25 $ 488 September 15, 2017 Series D February 2014 30,000,000 1/4,000th 100,000 25 742 March 15, 2024 Series E November 2014 30,000,000 1/4,000th 100,000 25 728 December 15, 2019 Series F May 2015 750,000 1/100th 100,000 1,000 742 September 15, 2020 Series G April 2016 20,000,000 1/4,000th 100,000 25 493 March 15, 2026 (1) On the redemption date, or any dividend declaration date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. (2) The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. The following table presents the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated: Three Months Ended June 30, 2018 2017 Dividends Declared per Share Dividends Declared per Depositary Share Total (1) Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Preferred Stock: Series C $ 1,313 $ 0.33 $ 7 $ 1,313 $ 0.33 $ 7 Series D 1,475 0.37 11 1,475 0.37 11 Series E 1,500 0.38 11 1,500 0.38 11 Series F — — — — — — Series G 1,338 0.33 7 1,338 0.33 7 Total $ 36 $ 36 Six Months Ended June 30, 2018 2017 Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Preferred Stock: Series C $ 2,626 $ 0.66 $ 13 $ 2,626 $ 0.66 $ 13 Series D 2,950 0.74 22 2,950 0.74 22 Series E 3,000 0.76 22 3,000 0.76 22 Series F 2,625 26.25 20 2,625 26.25 20 Series G 2,676 0.66 14 2,676 0.66 14 Total $ 91 $ 91 (1) Dividends were paid in June 2018. In July 2018, we declared dividends on our Series C, D, E, F and G preferred stock of approximately $1,313, $1,475, $1,500, $2,625 and $1,388, respectively, per share, or approximately $0.33, $0.37, $0.38, $26.25 and $0.33, respectively, per depositary share. These dividends total approximately $7 million, $11 million, $11 million, $20 million and $7 million on our Series C, D, E, F and G preferred stock, respectively, which will be paid in September 2018. Common Stock In June 2017, our Board approved a common stock purchase program authorizing the purchase of up to $1.4 billion of our common stock through June 30, 2018 (the 2017 Program). We did not purchase any common stock under the 2017 Plan in the second quarter of 2018. In June 2018 our Board approved a common stock purchase program authorizing the purchase of up to $1.2 billion of our common stock through June 30, 2019 (the 2018 Program). The table below presents the activity under the 2017 Program during the period indicated: Six Months Ended June 30, 2018 (1) Shares Acquired Average Cost per Share Total Acquired 2017 Program 3.3 $ 105.31 $ 350 (1) There were no shares repurchased in the second quarter of 2018. The table below presents the dividends declared on common stock for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) Common Stock $ 0.42 $ 153 $ 0.38 $ 142 $ 0.84 $ 307 $ 0.76 $ 286 Accumulated Other Comprehensive Income (Loss) The following table presents the after-tax components of AOCI as of the dates indicated: (In millions) June 30, 2018 December 31, 2017 Net unrealized gains (losses) on cash flow hedges $ (113 ) $ (56 ) Net unrealized gains (losses) on available-for-sale securities portfolio (112 ) 148 Net unrealized gains (losses) related to reclassified available-for-sale securities 22 19 Net unrealized gains (losses) on available-for-sale securities (90 ) 167 Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges (55 ) (64 ) Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries (30 ) (65 ) Other-than-temporary impairment on held-to-maturity securities related to factors other than credit (7 ) (6 ) Net unrealized gains (losses) on retirement plans (156 ) (170 ) Foreign currency translation (1,037 ) (815 ) Total $ (1,488 ) $ (1,009 ) The following table presents changes in AOCI by component, net of related taxes, for the periods indicated: Six Months Ended June 30, 2018 (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries Other-Than-Temporary Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2017 $ (56 ) $ 103 $ (65 ) $ (6 ) $ (170 ) $ (815 ) $ (1,009 ) Other comprehensive income (loss) before reclassifications (57 ) (254 ) 35 1 1 (222 ) (496 ) Amounts reclassified into (out of) earnings — 6 — (2 ) 13 — 17 Other comprehensive income (loss) (57 ) (248 ) 35 (1 ) 14 (222 ) (479 ) Balance as of June 30, 2018 $ (113 ) $ (145 ) $ (30 ) $ (7 ) $ (156 ) $ (1,037 ) $ (1,488 ) Six Months Ended June 30, 2017 (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries Other-Than-Temporary Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2016 $ 229 $ (286 ) $ 95 $ (9 ) $ (194 ) $ (1,875 ) $ (2,040 ) Other comprehensive income (loss) before reclassifications (247 ) 505 (101 ) 2 (1 ) 627 785 Amounts reclassified into (out of) earnings — (24 ) — — 9 — (15 ) Other comprehensive income (loss) (247 ) 481 (101 ) 2 8 627 770 Balance as of June 30, 2017 $ (18 ) $ 195 $ (6 ) $ (7 ) $ (186 ) $ (1,248 ) $ (1,270 ) The following table presents after-tax reclassifications into earnings for the periods indicated: Three Months Ended June 30, 2018 2017 (In millions) Amounts Reclassified into Affected Line Item in Consolidated Statement of Income Available-for-sale securities: Net realized gains (losses) from sales of available-for-sale securities, net of related taxes of ($2) and zero, respectively $ 7 $ — Net gains (losses) from sales of available-for-sale securities Held-to-maturity securities: Other-than-temporary impairment on held-to-maturity securities related to factors other than credit (1 ) — Losses reclassified (from) to other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of $24 and $1, respectively 26 3 Compensation and employee benefits expenses Total reclassifications (out of) into AOCI $ 32 $ 3 Six Months Ended June 30, 2018 2017 (In millions) Amounts Reclassified into Affected Line Item in Consolidated Statement of Income Available-for-sale securities: Net realized gains (losses) from sales of available-for-sale securities, net of related taxes of ($3) and $16, respectively $ 6 $ (24 ) Net gains (losses) from sales of available-for-sale securities Held-to-maturity securities: Other-than-temporary impairment on held-to-maturity securities related to factors other than credit (2 ) — Losses reclassified (from) to other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of ($4) and ($2), respectively 13 9 Compensation and employee benefits expenses Total reclassifications (out of) into AOCI $ 17 $ (15 ) |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | Regulatory Capital We are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum regulatory capital requirements can initiate certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial condition. Under current regulatory capital adequacy guidelines, we must meet specified capital requirements that involve quantitative measures of our consolidated assets, liabilities and off-balance sheet exposures calculated in conformity with regulatory accounting practices. Our capital components and their classifications are subject to qualitative judgments by regulators about components, risk weightings and other factors. For additional information on regulatory capital, and the requirements to which we are subject, refer to pages 171 to 172 in Note 16 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K. As required by the Dodd-Frank Act, State Street and State Street Bank, as advanced approaches banking organizations, are subject to a permanent "capital floor" in the calculation and assessment of regulatory capital adequacy by U.S. banking regulators. Beginning on January 1, 2015, we were required to calculate our risk-based capital ratios using both the advanced approaches and the standardized approach. As a result, from January 1, 2015 going forward, our risk-based capital ratios for regulatory assessment purposes are the lower of each ratio calculated under the standardized approach and the advanced approaches. The methods for the calculation of our and State Street Bank's risk-based capital ratios will change as the provisions of the Basel III final rule related to the numerator (capital) and denominator (risk-weighted assets) are phased in, and as we begin calculating our risk-weighted assets using the advanced approaches. These ongoing methodological changes will result in differences in our reported capital ratios from one reporting period to the next that are independent of applicable changes to our capital base, our asset composition, our off-balance sheet exposures or our risk profile. As of June 30, 2018 , State Street and State Street Bank exceeded all regulatory capital adequacy requirements to which they were subject. As of June 30, 2018 , State Street Bank was categorized as “well capitalized” under the applicable regulatory capital adequacy framework, and exceeded all “well capitalized” ratio guidelines to which it was subject. Management believes that no conditions or events have occurred since June 30, 2018 that have changed the capital categorization of State Street Bank. The following table presents the regulatory capital structure, total risk-weighted assets, related regulatory capital ratios and the minimum required regulatory capital ratios for State Street and State Street Bank as of the dates indicated. As a result of changes in the methodologies used to calculate our regulatory capital ratios from period to period as the provisions of the Basel III final rule are phased in, the ratios presented in the table for each period-end are not directly comparable. Refer to the footnotes following the table. State Street State Street Bank (In millions) Basel III Advanced Approaches June 30, 2018 (1) Basel III Standardized Approach June 30, 2018 (2) Basel III Advanced Approaches December 31, 2017 (1) Basel III Standardized Approach December 31, 2017 (2) Basel III Advanced Approaches June 30, 2018 (1) Basel III Standardized Approach June 30, 2018 (2) Basel III Advanced Approaches December 31, 2017 (1) Basel III Standardized Approach December 31, 2017 (2) Common shareholders' equity: Common stock and related surplus $ 10,324 $ 10,324 $ 10,302 $ 10,302 $ 11,612 $ 11,612 $ 11,612 $ 11,612 Retained earnings 19,856 19,856 18,856 18,856 13,189 13,189 12,312 12,312 Accumulated other comprehensive income (loss) (1,446 ) (1,446 ) (972 ) (972 ) (1,251 ) (1,251 ) (809 ) (809 ) Treasury stock, at cost (9,317 ) (9,317 ) (9,029 ) (9,029 ) — — — — Total 19,417 19,417 19,157 19,157 23,550 23,550 23,115 23,115 Regulatory capital adjustments: Goodwill and other intangible assets, net of associated deferred tax liabilities (3) (7,008 ) (7,008 ) (6,877 ) (6,877 ) (6,711 ) (6,711 ) (6,579 ) (6,579 ) Other adjustments (186 ) (186 ) (76 ) (76 ) (44 ) (44 ) (5 ) (5 ) Common equity tier 1 capital 12,223 12,223 12,204 12,204 16,795 16,795 16,531 16,531 Preferred stock 3,196 3,196 3,196 3,196 — — — — Trust preferred capital securities subject to phase-out from tier 1 capital — — — — — — — — Other adjustments — — (18 ) (18 ) — — — — Tier 1 capital 15,419 15,419 15,382 15,382 16,795 16,795 16,531 16,531 Qualifying subordinated long-term debt 765 765 980 980 765 765 983 983 Trust preferred capital securities phased out of tier 1 capital — — — — — — — — ALLL and other — 73 4 72 — 73 — 72 Other adjustments — — 1 1 — — — — Total capital $ 16,184 $ 16,257 $ 16,367 $ 16,435 $ 17,560 $ 17,633 $ 17,514 $ 17,586 Risk-weighted assets: Credit risk $ 48,308 $ 106,063 $ 49,976 $ 101,349 $ 45,689 $ 103,156 $ 47,448 $ 98,433 Operational risk (4) 45,991 NA 45,822 NA 45,423 NA 45,295 NA Market risk (5) 4,203 1,677 3,358 1,334 4,205 1,677 3,375 1,334 Total risk-weighted assets $ 98,502 $ 107,740 $ 99,156 $ 102,683 $ 95,317 $ 104,833 $ 96,118 $ 99,767 Adjusted quarterly average assets $ 216,896 $ 216,896 $ 209,328 $ 209,328 $ 214,670 $ 214,670 $ 206,070 $ 206,070 Capital Ratios: 2018 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge (6) 2017 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge (7) Common equity tier 1 capital 7.5 % 6.5 % 12.4 % 11.3 % 12.3 % 11.9 % 17.6 % 16.0 % 17.2 % 16.6 % Tier 1 capital 9.0 8.0 15.7 14.3 15.5 15.0 17.6 16.0 17.2 16.6 Total capital 11.0 10.0 16.4 15.1 16.5 16.0 18.4 16.8 18.2 17.6 Tier 1 leverage 4.0 4.0 7.1 7.1 7.3 7.3 7.8 7.8 8.0 8.0 (1) CET1 capital, tier 1 capital and total capital ratios as of June 30, 2018 and December 31, 2017 were calculated in conformity with the advanced approaches provisions of the Basel III final rule. Tier 1 leverage ratio as of June 30, 2018 and December 31, 2017 were calculated in conformity with the Basel III final rule. (2) CET1 capital, tier 1 capital and total capital ratios as of June 30, 2018 and December 31, 2017 were calculated in conformity with the standardized approach provisions of the Basel III final rule. Tier 1 leverage ratio as of June 30, 2018 and December 31, 2017 were calculated in conformity with the Basel III final rule. (3) Amounts for State Street and State Street Bank as of June 30, 2018 consisted of goodwill, net of associated deferred tax liabilities, and 100% of other intangible assets, net of associated deferred tax liabilities. Amounts for State Street and State Street Bank as of December 31, 2017 consisted of goodwill, net of deferred tax liabilities and 80% of other intangible assets, net of associated deferred tax liabilities. Intangible assets, net of associated deferred tax liabilities is phased in as a deduction from capital, in conformity with the Basel III final rule. (4) Under the current advanced approaches rules and regulatory guidance concerning operational risk models, RWA attributable to operational risk can vary substantially from period-to-period, without direct correlation to the effects of a particular loss event on our results of operations and financial condition and impacting dates and periods that may differ from the dates and periods as of and during which the loss event is reflected in our financial statements, with the timing and categorization dependent on the processes for model updates and, if applicable, model revalidation and regulatory review and related supervisory processes. An individual loss event can have a significant effect on the output of our operational risk RWA under the advanced approaches depending on the severity of the loss event and its categorization among the seven Basel-defined UOMs. (5) Market risk risk-weighted assets reported in conformity with the Basel III advanced approaches included a CVA which reflected the risk of potential fair value adjustments for credit risk reflected in our valuation of over-the-counter derivative contracts. The CVA was not provided for in the final market risk capital rule; however, it was required by the advanced approaches provisions of the Basel III final rule. We used a simple CVA approach in conformity with the Basel III advanced approaches. (6) Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of June 30, 2018 . (7) Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of December 31, 2017 . NA Not applicable |
Net Interest Income
Net Interest Income | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
Net Interest Income | Net Interest Income The following table presents the components of interest income and interest expense, and related NII, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2018 2017 2018 2017 Interest income: Deposits with banks $ 90 $ 41 $ 172 $ 76 Investment securities: U.S. Treasury and federal agencies 280 208 534 420 State and political subdivisions 44 56 96 114 Other investments 140 164 298 323 Securities purchased under resale agreements 81 69 159 115 Loans and leases 169 118 325 224 Other interest-earning assets 103 44 180 78 Total interest income 907 700 1,764 1,350 Interest expense: Deposits 89 14 152 57 Securities sold under repurchase agreements 6 — 7 1 Short-term borrowings 4 3 7 5 Long-term debt 97 75 194 148 Other interest-bearing liabilities 52 33 102 54 Total interest expense 248 125 462 265 Net interest income $ 659 $ 575 $ 1,302 $ 1,085 |
Expenses
Expenses | 6 Months Ended |
Jun. 30, 2018 | |
Other Expenses [Abstract] | |
Expenses | Expenses The following table presents the components of other expenses for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2018 2017 2018 2017 Insurance $ 32 $ 28 $ 64 $ 58 Regulatory fees and assessments 29 18 59 45 Sales advertising public relations 29 15 55 28 Bank operations 22 19 39 34 Litigation 5 (17 ) 7 (17 ) Other 89 69 183 135 Total other expenses $ 206 $ 132 $ 407 $ 283 Restructuring Charges In the three and six months ended June 30, 2018 we recorded no restructuring charges related to Beacon, compared to $62 million and $79 million in the same periods of 2017 , respectively. The following table presents aggregate restructuring activity for the periods indicated: (In millions) Employee Real Estate Asset and Other Write-offs Total Accrual Balance at December 31, 2016 $ 37 $ 17 $ 2 $ 56 Accruals for Beacon 14 — 2 16 Payments and Other Adjustments (13 ) (3 ) (2 ) (18 ) Accrual Balance at March 31, 2017 38 14 2 54 Accruals for Beacon 60 — 2 62 Payments and Other Adjustments (11 ) (3 ) (2 ) (16 ) Accrual Balance at June 30, 2017 $ 87 $ 11 $ 2 $ 100 Accrual Balance at December 31, 2017 $ 166 $ 32 $ 3 $ 201 Accruals for Beacon — — — — Payments and Other Adjustments (22 ) (4 ) — (26 ) Accrual Balance at March 31, 2018 144 28 3 175 Accruals for Beacon — — — — Payments and Other Adjustments (31 ) (3 ) — (34 ) Accrual Balance at June 30, 2018 $ 113 $ 25 $ 3 $ 141 |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Basic EPS is calculated pursuant to the “two-class” method, by dividing net income available to common shareholders by the weighted-average common shares outstanding during the period. Diluted EPS is calculated pursuant to the two-class method, by dividing net income available to common shareholders by the total weighted-average number of common shares outstanding for the period plus the shares representing the dilutive effect of equity-based awards. The effect of equity-based awards is excluded from the calculation of diluted EPS in periods in which their effect would be anti-dilutive. The two-class method requires the allocation of undistributed net income between common and participating shareholders. Net income available to common shareholders, presented separately in our consolidated statement of income, is the basis for the calculation of both basic and diluted EPS. Participating securities are composed of unvested and fully vested SERP shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings. The following table presents the computation of basic and diluted earnings per common share for the periods indicated: Three Months Ended June 30, (Dollars in millions, except per share amounts) 2018 2017 Net income $ 734 $ 620 Less: Preferred stock dividends (36 ) (36 ) Net income available to common shareholders $ 698 $ 584 Average common shares outstanding (In thousands): Basic average common shares 365,619 375,395 Effect of dilutive securities: equity-based awards 4,791 5,520 Diluted average common shares 370,410 380,915 Anti-dilutive securities (2) 1,206 293 Earnings per Common Share: Basic $ 1.91 $ 1.56 Diluted (3) 1.88 1.53 Six Months Ended June 30, (Dollars in millions, except per share amounts) 2018 2017 Net income $ 1,395 $ 1,122 Less: Preferred stock dividends (91 ) (91 ) Dividends and undistributed earnings allocated to participating securities (1) (1 ) (1 ) Net income available to common shareholders $ 1,303 $ 1,030 Average common shares outstanding (In thousands): Basic average common shares 366,524 378,293 Effect of dilutive securities: equity-based awards 4,891 5,196 Diluted average common shares 371,415 383,489 Anti-dilutive securities (2) 2 527 Earnings per Common Share: Basic $ 3.55 $ 2.72 Diluted (3) 3.51 2.69 (1) Represents the portion of net income available to common equity allocated to participating securities, composed of unvested and fully vested SERP shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings. (2) Represents equity-based awards outstanding but not included in the computation of diluted average common shares, because their effect was anti-dilutive. For additional information about equity-based awards, refer to pages 173 to 175 in Note 18 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K. (3) Calculations reflect allocation of earnings to participating securities using the two-class method, as this computation is more dilutive than the treasury stock method. |
Line of Business Information
Line of Business Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Line of Business Information | Line of Business Information Our operations are organized into two lines of business: Investment Servicing and Investment Management, which are defined based on products and services provided. The results of operations for these lines of business are not necessarily comparable with those of other companies, including companies in the financial services industry. For information about our two lines of business, as well as revenues, expenses and capital allocation methodologies associated with them, refer to pages 179 to 181 in Note 24 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K. The following is a summary of our line-of-business results for the periods indicated. The "Other" column represents costs incurred that are not allocated to a specific line of business, including certain severance and restructuring costs, acquisition costs and certain provisions for legal contingencies. Three Months Ended June 30, Investment Investment Other Total (Dollars in millions) 2018 2017 2018 2017 2018 2017 2018 2017 Servicing fees $ 1,381 $ 1,339 $ — $ — $ — $ — $ 1,381 $ 1,339 Management fees — — 465 397 — — 465 397 Trading services 282 272 33 17 — — 315 289 Securities finance 154 179 — — — — 154 179 Processing fees and other 41 32 2 (1 ) — — 43 31 Total fee revenue 1,858 1,822 500 413 — — 2,358 2,235 Net interest income 663 576 (4 ) (1 ) — — 659 575 Gains (losses) related to investment securities, net 9 — — — — — 9 — Total revenue 2,530 2,398 496 412 — — 3,026 2,810 Provision for loan losses 2 3 — — — — 2 3 Total expenses 1,693 1,649 389 311 77 71 2,159 2,031 Income before income tax expense $ 835 $ 746 $ 107 $ 101 $ (77 ) $ (71 ) $ 865 $ 776 Pre-tax margin 33 % 31 % 22 % 25 % 29 % 28 % Six Months Ended June 30, Investment Investment Other Total (Dollars in millions) 2018 2017 2018 2017 2018 2017 2018 2017 Servicing fees $ 2,802 $ 2,635 $ — $ — $ — $ — $ 2,802 $ 2,635 Management fees — — 937 779 — — 937 779 Trading services 555 529 64 35 — — 619 564 Securities finance 295 312 — — — — 295 312 Processing fees and other 82 138 1 5 — — 83 143 Total fee revenue 3,734 3,614 1,002 819 — — 4,736 4,433 Net interest income 1,311 1,085 (9 ) — — — 1,302 1,085 Gains (losses) related to investment securities, net 7 (40 ) — — — — 7 (40 ) Total revenue 5,052 4,659 993 819 — — 6,045 5,478 Provision for loan losses 2 1 — — — — 2 1 Total expenses 3,551 3,377 787 640 77 100 4,415 4,117 Income before income tax expense $ 1,499 $ 1,281 $ 206 $ 179 $ (77 ) $ (100 ) $ 1,628 $ 1,360 Pre-tax margin 30 % 27 % 21 % 22 % 27 % 25 % |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers We account for revenue from contracts with customers in accordance with Topic 606, which we adopted on January 1, 2018. See Note 1 for further discussion of our adoption, including the impact on our consolidated financial statements. The amount of revenue that we recognize is measured based on the consideration specified in contracts with our customers, and excludes taxes collected from customers subsequently remitted to governmental authorities. We recognize revenue when a performance obligation is satisfied over time as the services are performed or at a point in time depending on the nature of the services provided as further discussed below. Revenue recognition guidance related to contracts with customers excludes our NII, revenue earned on security lending transactions entered into as principal, realized gains/losses on securities, revenue earned on foreign exchange activity, loans and related fees, and gains/ losses on hedging and derivatives, to which we apply other applicable U.S. GAAP guidance. For contracts with multiple performance obligations, or contracts that have been combined, we allocate the contracts' transaction price to each performance obligation using our best estimate of the standalone selling price. Our contractual fees are negotiated on a customer by customer basis and are representative of standalone selling price utilized for allocating revenue when there are multiple performance obligations. Substantially all of our services are provided as a distinct series of daily performance obligations that the customer simultaneously benefits from as they are performed. Payments may be made to third party service providers and the expense is recognized gross when we control those services as we are deemed the principal. Contract durations may vary from short to long term or may be open ended. Termination notice periods are in line with general market practice and typically do not include termination penalties. Therefore for substantially all of our revenues, the duration of the contract and the enforceable rights and obligations do not extend beyond the services that are performed daily or at the transaction level. In instances where we have substantive termination penalties, the duration of the contract may extend through the date of substantive termination penalties. Investment Servicing Revenue from contracts with customers related to servicing fees is recognized over time as our customers benefit from the custody, administration, accounting, transfer agency and other related asset services as they are performed. At contract inception no revenue is estimated as the fees are dependent on assets under custody and administration and/or actual transactions which are susceptible to market factors outside of our control. Therefore, revenue is recognized using a time-based output method as the customers benefit from the services over time and as the assets under custody or transactions are known or determinable during each reporting period based on contractual fee schedules. Payments made to third party service providers, such as sub-custodians, are generally recognized gross as State Street controls those services and is deemed to be a principal in such arrangements . Trading services revenue includes revenue generated from providing access and use of electronic trading platforms and other trading, transition management and brokerage services. Electronic FX services are dependent on the volume of actual transactions initiated through our electronic exchange platforms. Revenue is recognized over time using a time-based measure as access to, and use of, the electronic exchange platforms is made available to the customer and the activity is determinable. Revenue related to other trading, transition management and brokerage services is recognized when the customer obtains the benefit of such services which may be over time or at a point in time upon trade execution. Securities finance revenue is related to services for providing agency lending programs to SSGA-managed investment funds and third-party investment managers and asset owners. This securities finance revenue is recognized over time using a time-based measure as our customers benefit from these lending services over time. Investment Management Revenue from contracts with customers related to investment management, investment research and investment advisory services provided through SSGA is recognized over time as our customers benefit from the services as they are performed. Substantially all of our investment management fees are determined by the value of assets under management and the investment strategies employed. At contract inception, no revenue is estimated as the fees are dependent on assets under management which are susceptible to market factors outside of our control. Therefore, substantially all of our Investment Management services revenue is recognized using a time-based output method as the customers benefit from the services over time and as the assets under management are known or determinable during each reporting period based on contractual fee schedules. Payments made to third party service providers, such as payments to others in unitary fee arrangements, are generally recognized on a gross basis when SSGA controls those services and is deemed to be a principal in such transactions. Revenue by category In the following table, revenue is disaggregated by our two lines of business and by revenue stream for which the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended June 30, 2018 Investment Servicing Investment Management Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2018 Servicing fees $ 1,381 $ — $ 1,381 $ — $ — $ — $ 1,381 Management fees — — — 465 — 465 465 Trading services 91 191 282 33 — 33 315 Securities finance 90 64 154 — — — 154 Processing fees and other 23 18 41 — 2 2 43 Total fee revenue 1,585 273 1,858 498 2 500 2,358 Net interest income — 663 663 — (4 ) (4 ) 659 Securities gains/ (losses) — 9 9 — — — 9 Total revenue $ 1,585 $ 945 $ 2,530 $ 498 $ (2 ) $ 496 $ 3,026 Six Months Ended June 30, 2018 Investment Servicing Investment Management Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2018 Servicing fees $ 2,802 $ — $ 2,802 $ — $ — $ — $ 2,802 Management fees — — — 937 — 937 937 Trading services 186 369 555 64 — 64 619 Securities finance 167 128 295 — — — 295 Processing fees and other 43 39 82 — 1 1 83 Total fee revenue 3,198 536 3,734 1,001 1 1,002 4,736 Net interest income — 1,311 1,311 — (9 ) (9 ) 1,302 Securities gains/ (losses) — 7 7 — — — 7 Total revenue $ 3,198 $ 1,854 $ 5,052 $ 1,001 $ (8 ) $ 993 $ 6,045 Contract balances and contract costs A s of both June 30, 2018 and December 31, 2017 , net receivables of $2.6 billion are included in Accrued interest and fees receivable, representing amounts billed or currently billable to or due from our customers related to revenue from contracts with customers. As performance obligations are satisfied, we have an unconditional right to payment following which billing is generally performed monthly and therefore does not give rise to significant contract assets or liabilities. No adjustments are made to the promised amount of consideration for the effects of a significant financing component as the period between when we transfer a promised service to a customer and when the customer pays for that service is expected to be one year or less. |
Non-U.S. Activities
Non-U.S. Activities | 6 Months Ended |
Jun. 30, 2018 | |
Segments, Geographical Areas [Abstract] | |
Non-U.S. Activities | Non-U.S. Activities We define our non-U.S. activities as those revenue-producing business activities that arise from clients which are generally serviced or managed outside the U.S. Due to the integrated nature of our business, precise segregation of our U.S. and non-U.S. activities is not possible. Subjective estimates, assumptions and other judgments are applied to quantify the financial results and assets related to our non-U.S. activities, including our application of funds transfer pricing, our asset and liability management policies and our allocation of certain indirect corporate expenses. Management periodically reviews and updates its processes for quantifying the financial results and assets related to our non-U.S. activities. The following table presents our U.S. and non-U.S. financial results for the periods indicated: Three Months Ended June 30, 2018 2017 (In millions) Non-U.S. U.S. Total Non-U.S. U.S. Total Total revenue $ 1,322 $ 1,704 $ 3,026 $ 1,172 $ 1,638 $ 2,810 Income before income taxes 427 438 865 324 452 776 Six Months Ended June 30, 2018 2017 (In millions) Non-U.S. U.S. Total Non-U.S. U.S. Total Total revenue $ 2,643 $ 3,402 $ 6,045 $ 2,268 $ 3,210 $ 5,478 Income before income taxes 846 782 1,628 583 777 1,360 Non-U.S. assets were $84.9 billion and $73.2 billion as of June 30, 2018 and 2017 , respectively. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 20, 2018 we announced that we entered into a definitive agreement to acquire Charles River Development, a provider of investment management front office tools and solutions, in an all cash transaction for $2.6 billion . The acquisition, which is subject to regulatory approvals and customary closing conditions, is expected to be completed in the fourth quarter of 2018. The $2.6 billion purchase price is expected to be financed through the suspension of approximately $950 million of share repurchases in the second quarter of 2018, and during the remainder of 2018, and, subject to market conditions, the remainder of the purchase price through the issuance of equity, with approximately two-third of such equity expected to be in the form of common stock and one-third in preferred stock. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accounting and financial reporting policies of State Street Corporation conform to U.S. GAAP. State Street Corporation, the Parent Company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to “State Street,” “we,” “us,” “our” or similar references mean State Street Corporation and its subsidiaries on a consolidated basis. Our principal banking subsidiary is State Street Bank. The accompanying Consolidated Financial Statements should be read in conjunction with the financial and risk factor information included in our 2017 Form 10-K, which we previously filed with the SEC. The consolidated financial statements accompanying these condensed notes are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the consolidated results of operations in these financial statements, have been made. Certain previously reported amounts presented in this Form 10-Q have been reclassified to conform to current-period presentation. Events occurring subsequent to the date of our consolidated statement of condition were evaluated for potential recognition or disclosure in our consolidated financial statements through the date we filed this Form 10-Q with the SEC. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates. These accounting estimates reflect the best judgment of management, but actual results could differ. Our consolidated statement of condition as of December 31, 2017 included in the accompanying consolidated financial statements was derived from the audited financial statements as of that date, but does not include all notes required by U.S. GAAP for a complete set of consolidated financial statements. |
Recent Accounting Developments | Recent Accounting Developments Relevant standards that were issued but not yet adopted Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2016-02, Leases (Topic 842) The standard represents a wholesale change to lease accounting and requires all leases, other than short-term leases, to be reported on balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires extensive disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities. January 1, 2019 We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate an increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding liability for all lease obligations that are currently classified as operating leases, primarily real estate leases for office space, as well as additional disclosure on all our lease obligations. ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The standard replaces the existing incurred loss impairment guidance and requires immediate recognition of expected credit losses for financial assets carried at amortized cost, including trade and other receivables, loans and commitments, held-to-maturity debt securities and other financial assets, held at the reporting date to be measured based on historical experience, current conditions and reasonable supportable forecasts. The standard also amends existing impairment guidance for available-for-sale securities, and credit losses will be recorded as an allowance versus a write-down of the amortized cost basis of the security and will allow for a reversal of impairment loss when the credit of the issuer improves. The guidance requires a cumulative effect of initial application to be recognized in retained earnings at the date of initial application. January 1, 2020, early adoption permitted We are currently assessing the impact of the standard on our consolidated financial statements, and a significant implementation project is in place to ensure that expected credit losses are calculated in accordance with the standard. We have established a steering committee to provide cross-functional governance over the project plan and key decisions, and are currently developing key accounting policies, assessing existing credit loss models against the new guidance and processes and identifying a complete set of data requirements and sources. We continue to develop and test new and modified credit loss models and based on our analysis to date, we expect the timing of the allowance for credit losses to accelerate under the new standard. We are continuing to assess the extent of the impact on the allowance for credit losses which will be impacted by the Company's portfolio and the macroeconomic factors on the date of adoption. ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The standard simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The ASU requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. January 1, 2020, early adoption permitted We are evaluating the impacts of early adoption, and will apply this standard prospectively upon adoption. ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium amortization on Purchased Callable Debt Securities The standard shortens the amortization period for certain purchased callable debt securities to the earliest call date. January 1, 2019, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities The standard amends the hedge accounting model to better portray the economics of risk management activities in the financial statements and enhances the presentation of hedge results. The amendments also make targeted changes to simplify the application of hedge accounting in certain situations. January 1, 2019, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income This standard provides an election to reclassify the stranded tax effects resulting from the enactment of the Tax Cuts and Jobs Act of 2017, from accumulated other comprehensive income to retained earnings. January 1, 2019, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. We adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), on January 1, 2018. The standard provides companies with a single model for recognizing revenue from contracts with customers. The core principle requires a company to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to in exchange for those goods or services. We used the modified retrospective method of transition, which requires the impact of applying the standard on prior periods to be reflected in opening retained earnings upon adoption. The adoption of the standard does not have a material impact on the timing of recognition of revenue in our consolidated statement of income, or our consolidated statement of position, and therefore no adjustment has been made to retained earnings. However, due to the updated principal and agent guidance in the standard, certain costs we pay to third parties on behalf of our clients previously reported in our consolidated statement of income on a net basis, primarily against the related management fee revenue, and trading services revenue are now reported on a gross basis as expenses. For the six months ended June 30, 2018, both revenues and expenses increased by approximately $135 million , primarily due to the updated principal and agent guidance. The revenue impact was approximately $90 million in management fees, $35 million in trading services, and $10 million across other revenue line items, and the expense impact was approximately $30 million in transaction processing, $90 million in other expenses, and $15 million in information systems and communication. Adoption of the standard had no impact on cash from or used in operating, finan cing, or investing activities on our consolidated statements of cash flows. We adopted ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, effective January 1, 2018. Under the new standard, all equity securities will be measured at fair value through earnings with certain exceptions, including investments accounted for under the equity method of accounting or where the fair market value of an equity security is not readily available. Upon adoption of the standard on January 1, 2018, we reclassified approximately $397 million of money market funds and $46 million of equity securities held at fair value through profit and loss in other assets. The cumulative-effect transition adjustment recognized in retained earnings on January 1, 2018, and the change in fair value recognized through profit and loss for the period ended June 30, 2018, were immaterial to the financial statements. |
Fair Value Measurements | Fair Value Measurements We carry trading account assets and liabilities, AFS debt securities, certain equity securities and various types of derivative financial instruments, at fair value in our consolidated statement of condition on a recurring basis. Changes in the fair values of these financial assets and liabilities are recorded either as components of our consolidated statement of income or as components of AOCI within shareholders' equity in our consolidated statement of condition. We measure fair value for the above-described financial assets and liabilities in conformity with U.S. GAAP that governs the measurement of the fair value of financial instruments. Management believes that its valuation techniques and underlying assumptions used to measure fair value conform to the provisions of U.S. GAAP. We categorize the financial assets and liabilities that we carry at fair value based on a prescribed three-level valuation hierarchy. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Recent Accounting Developments | Recent Accounting Developments Relevant standards that were issued but not yet adopted Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2016-02, Leases (Topic 842) The standard represents a wholesale change to lease accounting and requires all leases, other than short-term leases, to be reported on balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires extensive disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities. January 1, 2019 We are currently assessing the impact of the standard on our consolidated financial statements, but we anticipate an increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding liability for all lease obligations that are currently classified as operating leases, primarily real estate leases for office space, as well as additional disclosure on all our lease obligations. ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The standard replaces the existing incurred loss impairment guidance and requires immediate recognition of expected credit losses for financial assets carried at amortized cost, including trade and other receivables, loans and commitments, held-to-maturity debt securities and other financial assets, held at the reporting date to be measured based on historical experience, current conditions and reasonable supportable forecasts. The standard also amends existing impairment guidance for available-for-sale securities, and credit losses will be recorded as an allowance versus a write-down of the amortized cost basis of the security and will allow for a reversal of impairment loss when the credit of the issuer improves. The guidance requires a cumulative effect of initial application to be recognized in retained earnings at the date of initial application. January 1, 2020, early adoption permitted We are currently assessing the impact of the standard on our consolidated financial statements, and a significant implementation project is in place to ensure that expected credit losses are calculated in accordance with the standard. We have established a steering committee to provide cross-functional governance over the project plan and key decisions, and are currently developing key accounting policies, assessing existing credit loss models against the new guidance and processes and identifying a complete set of data requirements and sources. We continue to develop and test new and modified credit loss models and based on our analysis to date, we expect the timing of the allowance for credit losses to accelerate under the new standard. We are continuing to assess the extent of the impact on the allowance for credit losses which will be impacted by the Company's portfolio and the macroeconomic factors on the date of adoption. ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The standard simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The ASU requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. January 1, 2020, early adoption permitted We are evaluating the impacts of early adoption, and will apply this standard prospectively upon adoption. ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium amortization on Purchased Callable Debt Securities The standard shortens the amortization period for certain purchased callable debt securities to the earliest call date. January 1, 2019, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities The standard amends the hedge accounting model to better portray the economics of risk management activities in the financial statements and enhances the presentation of hedge results. The amendments also make targeted changes to simplify the application of hedge accounting in certain situations. January 1, 2019, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income This standard provides an election to reclassify the stranded tax effects resulting from the enactment of the Tax Cuts and Jobs Act of 2017, from accumulated other comprehensive income to retained earnings. January 1, 2019, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Fair Value Measurements on a Recurring Basis As of June 30, 2018 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 39 $ — $ — $ 39 Non-U.S. government securities 374 135 — 509 Other 79 533 — 612 Total trading account assets 492 668 — 1,160 AFS investment securities: U.S. Treasury and federal agencies: Direct obligations 11 — — 11 Mortgage-backed securities — 15,893 — 15,893 Total U.S. Treasury and federal agencies 11 15,893 — 15,904 Asset-backed securities: Student loans — 1,567 — 1,567 Credit cards — 617 — 617 CLOs — — 851 851 Total asset-backed securities — 2,184 851 3,035 Non-U.S. debt securities: Mortgage-backed securities — 2,615 — 2,615 Asset-backed securities — 1,183 474 1,657 Government securities — 13,072 — 13,072 Other (2) — 4,283 169 4,452 Total non-U.S. debt securities — 21,153 643 21,796 State and political subdivisions — 4,228 — 4,228 Collateralized mortgage obligations — 319 — 319 Other U.S. debt securities — 2,066 — 2,066 Total AFS investment securities 11 45,843 1,494 47,348 Other assets: Derivative instruments: Foreign exchange contracts — 17,373 7 (11,231 ) 6,149 Other derivative contracts 2 — — — 2 Total derivative instruments 2 17,373 7 (11,231 ) 6,151 Other — 449 — — 449 Total assets carried at fair value $ 505 $ 64,333 $ 1,501 $ (11,231 ) $ 55,108 Liabilities: Accrued expenses and other liabilities: Trading account liabilities: Other 70 — — — 70 Derivative instruments: Foreign exchange contracts — 17,552 6 (12,608 ) 4,950 Interest-rate contracts 4 102 — — 106 Other derivative contracts 2 268 — — 270 Total derivative instruments 6 17,922 6 (12,608 ) 5,326 Total liabilities carried at fair value $ 76 $ 17,922 $ 6 $ (12,608 ) $ 5,396 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $1,557 million and $2,934 million , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of June 30, 2018 , the fair value of other non-U.S. debt securities was primarily composed of $1,959 million of covered bonds and $1,735 million of corporate bonds. Fair Value Measurements on a Recurring Basis As of December 31, 2017 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 39 $ — $ — $ 39 Non-U.S. government securities 389 93 — 482 Other 44 528 — 572 Total trading account assets 472 621 — 1,093 AFS investment securities: U.S. Treasury and federal agencies: Direct obligations 11 212 — 223 Mortgage-backed securities — 10,872 — 10,872 Total U.S. Treasury and federal agencies 11 11,084 — 11,095 Asset-backed securities: Student loans — 3,358 — 3,358 Credit cards — 1,542 — 1,542 CLOs — 89 1,358 1,447 Total asset-backed securities — 4,989 1,358 6,347 Non-U.S. debt securities: Mortgage-backed securities — 6,576 119 6,695 Asset-backed securities — 2,545 402 2,947 Government securities — 10,721 — 10,721 Other (2) — 5,904 204 6,108 Total non-U.S. debt securities — 25,746 725 26,471 State and political subdivisions — 9,108 43 9,151 Collateralized mortgage obligations — 1,054 — 1,054 Other U.S. debt securities — 2,560 — 2,560 U.S. equity securities — 46 — 46 U.S. money-market mutual funds — 397 — 397 Total AFS investment securities 11 54,984 2,126 57,121 Other assets: Derivatives instruments: Foreign exchange contracts — 11,596 1 (7,593 ) 4,004 Interest-rate contracts 8 — — — 8 Other derivative contracts 1 — — — 1 Total derivative instruments 9 11,596 1 (7,593 ) 4,013 Total assets carried at fair value $ 492 $ 67,201 $ 2,127 $ (7,593 ) $ 62,227 Liabilities: Accrued expenses and other liabilities: Trading account liabilities: Other 39 — — — 39 Derivative instruments: Foreign exchange contracts — 11,467 1 (5,970 ) 5,498 Interest-rate contracts — 100 — — 100 Other derivative contracts 1 283 — — 284 Total derivative instruments 1 11,850 1 (5,970 ) 5,882 Total liabilities carried at fair value $ 40 $ 11,850 $ 1 $ (5,970 ) $ 5,921 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $2,045 million and $422 million , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of December 31, 2017 , the fair value of other non-U.S. debt securities was primarily composed of $3,537 million of covered bonds and $1,885 million of corporate bonds. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present activity related to our level 3 financial assets during the three and six months ended June 30, 2018 and 2017 , respectively, including total realized and unrealized gains and losses. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the three and six months ended June 30, 2018 and 2017 , transfers into level 3 were mainly related to certain ABS, including non-U.S. debt securities. During the three and six months ended June 30, 2018 and 2017 , transfers out of level 3 were mainly related to certain MBS and ABS, including non-U.S. debt securities, for which fair value was measured using prices for which observable market information became available. Fair Value Measurements Using Significant Unobservable Inputs Three Months Ended June 30, 2018 Fair Value Total Realized and Purchases Sales Settlements Fair Value as of June 30, 2018 (1) Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: AFS Investment securities: Asset-backed securities: CLOs $ 826 $ 1 $ (2 ) $ — $ — $ 26 $ 851 Total asset-backed securities 826 1 (2 ) — — 26 851 Non-U.S. debt securities: Asset-backed securities 272 — — 269 — (67 ) 474 Other 178 — — — — (9 ) 169 Total non-U.S. debt securities 450 — — 269 — (76 ) 643 State and political subdivisions 37 — — — (37 ) — — Total AFS investment securities 1,313 1 (2 ) 269 (37 ) (50 ) 1,494 Other assets: Derivative instruments: Foreign exchange contracts 3 3 — 4 — (3 ) 7 $ 2 Total derivative instruments 3 3 — 4 — (3 ) 7 2 Total assets carried at fair value $ 1,316 $ 4 $ (2 ) $ 273 $ (37 ) $ (53 ) $ 1,501 $ 2 (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services. Fair Value Measurements Using Significant Unobservable Inputs Six Months Ended June 30, 2018 Fair Value as of Total Realized and Purchases Sales Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value as of June 30, 2018 (1) Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2018 (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: AFS Investment securities: Asset-backed securities: CLOs $ 1,358 $ 2 $ (3 ) $ 318 $ (636 ) $ 21 $ — $ (209 ) $ 851 Total asset-backed securities 1,358 2 (3 ) 318 (636 ) 21 — (209 ) 851 Non-U.S. debt securities: Mortgage-backed securities 119 — — — — — — (119 ) — Asset-backed securities 402 — (1 ) 380 (311 ) (64 ) 68 — 474 Other 204 — — — — (35 ) — — 169 Total non-U.S. debt securities 725 — (1 ) 380 (311 ) (99 ) 68 (119 ) 643 State and political subdivisions 43 — — (1 ) (37 ) — — (5 ) — Total AFS investment securities 2,126 2 (4 ) 697 (984 ) (78 ) 68 (333 ) 1,494 Other assets: Derivative instruments: Foreign exchange contracts 1 1 — 5 — — — — 7 $ 2 Total derivative instruments 1 1 — 5 — — — — 7 2 Total assets carried at fair value $ 2,127 $ 3 $ (4 ) $ 702 $ (984 ) $ (78 ) $ 68 $ (333 ) $ 1,501 $ 2 (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services. Fair Value Measurements Using Significant Unobservable Inputs Three Months Ended June 30, 2017 Fair Value as of March 31, Total Realized and Purchases Settlements Transfers Transfers Fair Value as of June 30, Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2017 (In millions) Recorded (1) Recorded (1) Assets: AFS Investment securities: Asset-backed securities: Student loans $ 99 $ — $ — $ — $ — $ — $ (99 ) $ — CLOs 771 1 (1 ) 199 (120 ) 101 — 951 Total asset-backed securities 870 1 (1 ) 199 (120 ) 101 (99 ) 951 Non-U.S. debt securities: Asset-backed securities 59 1 (1 ) — (16 ) 51 (31 ) 63 Other 256 — — — 18 — — 274 Total non-U.S. debt securities 315 1 (1 ) — 2 51 (31 ) 337 State and political subdivisions 39 — — — (1 ) — — 38 Collateralized mortgage obligations 39 — — — — — (39 ) — Other U.S. debt securities — — — 19 — — — 19 Total AFS investment securities 1,263 2 (2 ) 218 (119 ) 152 (169 ) 1,345 Other assets: Derivative instruments: Foreign exchange contracts 2 1 — 2 — — — 5 $ 2 Total derivative instruments 2 1 — 2 — — — 5 2 Total assets carried at fair value $ 1,265 $ 3 $ (2 ) $ 220 $ (119 ) $ 152 $ (169 ) $ 1,350 $ 2 (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services. Fair Value Measurements Using Significant Unobservable Inputs Six Months Ended June 30, 2017 Fair Value as of December 31, 2016 Total Realized and Purchases Settlements Transfers Transfers Fair Value as of June 30, Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2017 (In millions) Recorded (1) Recorded (1) Assets: AFS Investment securities: Asset-backed securities: Student loans $ 97 $ — $ 2 $ — $ — $ — $ (99 ) $ — CLOs 905 2 (1 ) 354 (410 ) 101 — 951 Total asset-backed securities 1,002 2 1 354 (410 ) 101 (99 ) 951 Non-U.S. debt securities: Asset-backed securities 32 1 (1 ) 31 (20 ) 51 (31 ) 63 Other 248 — — 5 21 — — 274 Total non-U.S. debt securities 280 1 (1 ) 36 1 51 (31 ) 337 State and political subdivisions 39 — — — (1 ) — — 38 Collateralized mortgage obligations 16 — — 23 — — (39 ) — Other U.S. debt securities — — — 19 — — — 19 Total AFS investment securities 1,337 3 — 432 (410 ) 152 (169 ) 1,345 Other assets: Derivative instruments: Foreign exchange contracts 8 (6 ) — 7 (4 ) — — 5 $ 2 Total derivative instruments 8 (6 ) — 7 (4 ) — — 5 2 Total assets carried at fair value $ 1,345 $ (3 ) $ — $ 439 $ (414 ) $ 152 $ (169 ) $ 1,350 $ 2 (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services. |
Fair Value Inputs, Assets, Quantitative Information | The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level 3 financial assets and liabilities measured at fair value on a recurring basis for which we use internally-developed pricing models. The significant unobservable inputs for our level 3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker or dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer. Quantitative Information about Level 3 Fair Value Measurements Fair Value Weighted-Average (Dollars in millions) As of June 30, 2018 As of December 31, 2017 Valuation Technique Significant (1) As of June 30, 2018 As of December 31, 2017 Significant unobservable inputs readily available to State Street: Assets: Derivative instruments, foreign exchange contracts $ 7 $ 1 Option model Volatility 8.4 % 7.2 % Total $ 7 $ 1 Liabilities: Derivative instruments, foreign exchange contracts $ 6 $ 1 Option model Volatility 8.3 % 7.2 % Total $ 6 $ 1 (1) Significant chan ges in these unobservable inputs would result in significant changes in fair value measurement. |
Fair Value Inputs, Liabilities, Quantitative Information | The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level 3 financial assets and liabilities measured at fair value on a recurring basis for which we use internally-developed pricing models. The significant unobservable inputs for our level 3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker or dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer. Quantitative Information about Level 3 Fair Value Measurements Fair Value Weighted-Average (Dollars in millions) As of June 30, 2018 As of December 31, 2017 Valuation Technique Significant (1) As of June 30, 2018 As of December 31, 2017 Significant unobservable inputs readily available to State Street: Assets: Derivative instruments, foreign exchange contracts $ 7 $ 1 Option model Volatility 8.4 % 7.2 % Total $ 7 $ 1 Liabilities: Derivative instruments, foreign exchange contracts $ 6 $ 1 Option model Volatility 8.3 % 7.2 % Total $ 6 $ 1 (1) Significant chan ges in these unobservable inputs would result in significant changes in fair value measurement. |
Carrying Value and Estimated Fair Value of Financial Instruments by Fair Value Hierarchy | The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value on a recurring basis, as they would be categorized within the fair value hierarchy, as of the dates indicated. Fair Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) June 30, 2018 Financial Assets: Cash and due from banks $ 3,886 $ 3,886 $ 3,886 $ — $ — Interest-bearing deposits with banks 76,366 76,366 — 76,366 — Securities purchased under resale agreements 3,583 3,583 — 3,583 — Investment securities held-to-maturity 39,594 38,805 15,639 23,043 123 Net loans (excluding leases) (1) 23,638 23,613 — 23,571 42 Other (2) 7,000 7,000 — 7,000 — Financial Liabilities: Deposits: Non-interest-bearing $ 52,316 $ 52,316 $ — $ 52,316 $ — Interest-bearing - U.S. 57,407 57,407 — 57,407 — Interest-bearing - non-U.S. 76,940 76,940 — 76,940 — Securities sold under repurchase agreements 3,088 3,088 — 3,088 — Other short-term borrowings 1,103 1,103 — 1,103 — Long-term debt 10,387 10,597 — 10,346 251 Other (2) 7,000 7,000 — 7,000 — (1) Includes $22 million of loans classified as held-for-sale that were measured at fair value on a non-recurring basis as of June 30, 2018. (2) Represents a portion of underlying client assets related to our enhanced custody business, which assets clients have allowed us to transfer and re-pledge. Fair Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) December 31, 2017 Financial Assets: Cash and due from banks $ 2,107 $ 2,107 $ 2,107 $ — $ — Interest-bearing deposits with banks 67,227 67,227 — 67,227 — Securities purchased under resale agreements 3,241 3,241 — 3,241 — Investment securities held-to-maturity 40,458 40,255 16,814 23,318 123 Net loans (excluding leases) (1) 22,577 22,482 — 22,431 51 Financial Liabilities: Deposits: Non-interest-bearing $ 47,175 $ 47,175 $ — $ 47,175 $ — Interest-bearing - U.S. 50,139 50,139 — 50,139 — Interest-bearing - non-U.S. 87,582 87,582 — 87,582 — Securities sold under repurchase agreements 2,842 2,842 — 2,842 — Other short-term borrowings 1,144 1,144 — 1,144 — Long-term debt 11,620 11,919 — 11,639 280 (1) Includes $3 million of loans classified as held-for-sale that were measured at fair value on a non-recurring basis as of December 31, 2017. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | The following table presents the amortized cost, fair value and associated unrealized gains and losses of AFS and HTM investment securities as of the dates indicated: June 30, 2018 December 31, 2017 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value (In millions) Gains Losses Gains Losses Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 11 $ — $ — $ 11 $ 222 $ 2 $ 1 $ 223 Mortgage-backed securities 16,158 22 287 15,893 10,975 26 129 10,872 Total U.S. Treasury and federal agencies 16,169 22 287 15,904 11,197 28 130 11,095 Asset-backed securities: Student loans (1) 1,546 22 1 1,567 3,325 37 4 3,358 Credit cards 639 1 23 617 1,565 2 25 1,542 CLOs 848 4 1 851 1,440 7 — 1,447 Total asset-backed securities 3,033 27 25 3,035 6,330 46 29 6,347 Non-U.S. debt securities: Mortgage-backed securities 2,609 8 2 2,615 6,664 36 5 6,695 Asset-backed securities 1,655 2 — 1,657 2,942 5 — 2,947 Government securities 13,089 31 48 13,072 10,754 16 49 10,721 Other (2) 4,449 19 16 4,452 6,076 38 6 6,108 Total non-U.S. debt securities 21,802 60 66 21,796 26,436 95 60 26,471 State and political subdivisions (3) 4,127 114 13 4,228 8,929 245 23 9,151 Collateralized mortgage obligations 325 — 6 319 1,060 3 9 1,054 Other U.S. debt securities 2,104 5 43 2,066 2,563 12 15 2,560 U.S. equity securities (4) — — — — 40 8 2 46 U.S. money-market mutual funds (4) — — — — 397 — — 397 Total $ 47,560 $ 228 $ 440 $ 47,348 $ 56,952 $ 437 $ 268 $ 57,121 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 15,992 $ — $ 292 $ 15,700 $ 17,028 $ — $ 143 $ 16,885 Mortgage-backed securities 17,443 1 652 16,792 16,651 22 225 16,448 Total U.S. Treasury and federal agencies 33,435 1 944 32,492 33,679 22 368 33,333 Asset-backed securities: Student loans (1) 2,892 44 8 2,928 3,047 32 9 3,070 Credit cards 710 1 — 711 798 2 — 800 Other 1 — — 1 1 — — 1 Total asset-backed securities 3,603 45 8 3,640 3,846 34 9 3,871 Non-U.S. debt securities: Mortgage-backed securities 727 82 5 804 939 82 6 1,015 Asset-backed securities 231 — — 231 263 1 — 264 Government securities 404 2 — 406 474 2 — 476 Other 47 — — 47 48 — — 48 Total non-U.S. debt securities 1,409 84 5 1,488 1,724 85 6 1,803 Collateralized mortgage obligations 1,147 45 7 1,185 1,209 45 6 1,248 Total $ 39,594 $ 175 $ 964 $ 38,805 $ 40,458 $ 186 $ 389 $ 40,255 (1) Primarily composed of securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans. (2) As of June 30, 2018 and December 31, 2017 , the fair value of other non-U.S. debt securities was primarily composed of $1,959 million and $3,537 million , respectively, of covered bonds and $1,735 million and $1,885 million , respectively, of corporate bonds. (3) As of June 30, 2018 and December 31, 2017, the fair value of State and Political subdivisions includes securities in trusts of $1,207 million and $1,247 million , respectively. Additional information about these trusts is provided in Note 11 to the consolidated financial statements in this Form 10-Q. (4) During the first quarter of 2018, we adopted ASU 2016-01. For additional information see Note 1. |
Schedule of Gross Pre-tax Unrealized Losses on Investment Securities | The following tables present the aggregate fair values of AFS and HTM investment securities that have been in 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 longer, as of the dates indicated: Less than 12 months 12 months or longer Total June 30, 2018 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In millions) Available-for-sale: U.S. Treasury and federal agencies: Mortgage-backed securities $ 7,776 $ 136 $ 3,030 $ 151 $ 10,806 $ 287 Total U.S. Treasury and federal agencies 7,776 136 3,030 151 10,806 287 Asset-backed securities: Student loans 309 1 192 — 501 1 Credit cards 491 23 — — 491 23 CLOs 326 1 — — 326 1 Total asset-backed securities 1,126 25 192 — 1,318 25 Non-U.S. debt securities: Mortgage-backed securities 756 2 63 — 819 2 Government securities 6,216 48 — — 6,216 48 Other 1,254 15 56 1 1,310 16 Total non-U.S. debt securities 8,226 65 119 1 8,345 66 State and political subdivisions 563 7 233 6 796 13 Collateralized mortgage obligations 232 4 70 2 302 6 Other U.S. debt securities 1,382 36 113 7 1,495 43 Total $ 19,305 $ 273 $ 3,757 $ 167 $ 23,062 $ 440 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 12,528 $ 246 $ 3,172 $ 46 $ 15,700 $ 292 Mortgage-backed securities 11,090 320 5,606 332 16,696 652 Total U.S. Treasury and federal agencies 23,618 566 8,778 378 32,396 944 Asset-backed securities: Student loans 99 1 559 7 658 8 Total asset-backed securities 99 1 559 7 658 8 Non-U.S. debt securities: Mortgage-backed securities 93 1 133 4 226 5 Total non-U.S. debt securities 93 1 133 4 226 5 Collateralized mortgage obligations 2 — 238 7 240 7 Total $ 23,812 $ 568 $ 9,708 $ 396 $ 33,520 $ 964 Less than 12 months 12 months or longer Total December 31, 2017 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In millions) Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ — $ — $ 67 $ 1 $ 67 $ 1 Mortgage-backed securities 5,161 31 3,341 98 8,502 129 Total U.S. Treasury and federal agencies 5,161 31 3,408 99 8,569 130 Asset-backed securities: Student loans — — 769 4 769 4 Credit cards 1,289 25 — — 1,289 25 Total asset-backed securities 1,289 25 769 4 2,058 29 Non-U.S. debt securities: Mortgage-backed securities 1,059 4 469 1 1,528 5 Government securities 7,629 48 68 1 7,697 49 Other 816 4 289 2 1,105 6 Total non-U.S. debt securities 9,504 56 826 4 10,330 60 State and political subdivisions 734 6 901 17 1,635 23 Collateralized mortgage obligations 399 5 136 4 535 9 Other U.S. debt securities 1,007 8 345 7 1,352 15 U.S. equity securities — — 6 2 6 2 Total $ 18,094 $ 131 $ 6,391 $ 137 $ 24,485 $ 268 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 14,439 $ 109 $ 2,447 $ 34 $ 16,886 $ 143 Mortgage-backed securities 6,785 38 5,988 187 12,773 225 Total U.S. Treasury and federal agencies 21,224 147 8,435 221 29,659 368 Asset-backed securities: Student loans 440 3 423 6 863 9 Total asset-backed securities 440 3 423 6 863 9 Non-U.S. debt securities: Mortgage-backed securities — — 239 6 239 6 Total non-U.S. debt securities — — 239 6 239 6 Collateralized mortgage obligations — — 276 6 276 6 Total $ 21,664 $ 150 $ 9,373 $ 239 $ 31,037 $ 389 |
Investments Classified by Contractual Maturity Date | The following table presents contractual maturities of debt investment securities by carrying amount as of June 30, 2018 . The maturities of certain ABS, MBS, and CMOs are based on expected principal payments. Actual maturities may differ from these expected maturities since certain borrowers have the right to prepay obligations with or without prepayment penalties. June 30, 2018 Under 1 Year 1 to 5 Years 6 to 10 Years Over 10 Years Total (In millions) Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 11 $ — $ — $ — $ 11 Mortgage-backed securities 105 621 2,708 12,459 15,893 Total U.S. Treasury and federal agencies 116 621 2,708 12,459 15,904 Asset-backed securities: Student loans 56 366 457 688 1,567 Credit cards — 491 126 — 617 CLOs 100 589 142 20 851 Total asset-backed securities 156 1,446 725 708 3,035 Non-U.S. debt securities: Mortgage-backed securities 223 1,807 195 390 2,615 Asset-backed securities 155 712 650 140 1,657 Government securities 2,279 4,422 6,103 268 13,072 Other 1,232 2,478 705 37 4,452 Total non-U.S. debt securities 3,889 9,419 7,653 835 21,796 State and political subdivisions 406 1,284 1,786 752 4,228 Collateralized mortgage obligations — 16 — 303 319 Other U.S. debt securities 76 1,281 709 — 2,066 Total $ 4,643 $ 14,067 $ 13,581 $ 15,057 $ 47,348 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 3,205 $ 12,725 $ 13 $ 49 $ 15,992 Mortgage-backed securities 10 185 1,467 15,781 17,443 Total U.S. Treasury and federal agencies 3,215 12,910 1,480 15,830 33,435 Asset-backed securities: Student loans 32 276 226 2,358 2,892 Credit cards 173 537 — — 710 Other — — — 1 1 Total asset-backed securities 205 813 226 2,359 3,603 Non-U.S. debt securities: Mortgage-backed securities 94 140 21 472 727 Asset-backed securities — 231 — — 231 Government securities 287 117 — — 404 Other 47 — — — 47 Total non-U.S. debt securities 428 488 21 472 1,409 Collateralized mortgage obligations 5 418 49 675 1,147 Total $ 3,853 $ 14,629 $ 1,776 $ 19,336 $ 39,594 |
Schedule of Credit-Related Loss Activity Recognized in Earnings | The following table presents a roll-forward with respect to net impairment losses that have been recognized in income for the periods indicated. Six Months Ended June 30, (In millions) 2018 2017 Balance, beginning of period $ 64 $ 66 Additions: Losses for which OTTI was previously recognized 1 — Deductions: Previously recognized losses related to securities sold or matured — (2 ) Balance, end of period $ 65 $ 64 |
Loans and Leases (Tables)
Loans and Leases (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Net Loans | The following table presents our recorded investment in loans and leases, by segment, as of the dates indicated: (In millions) June 30, 2018 December 31, 2017 Domestic: Commercial and financial: Loans to investment funds $ 13,359 $ 13,618 Senior secured bank loans 3,053 2,923 Loans to municipalities 1,773 2,105 Other 42 50 Commercial real estate 285 98 Lease financing 78 267 Total domestic 18,590 19,061 Non-U.S.: Commercial and financial: Loans to investment funds 4,535 3,213 Senior secured bank loans 646 624 Lease financing 353 396 Total non-U.S. 5,534 4,233 Total loans and leases 24,124 23,294 Allowance for loan and lease losses (55 ) (54 ) Loans and leases, net of allowance $ 24,069 $ 23,240 |
Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator | The following tables present our recorded investment in each class of loans and leases by credit quality indicator as of the dates indicated: June 30, 2018 Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases (In millions) Investment grade (1) $ 18,182 $ 285 $ 430 $ 18,897 Speculative (2) 5,227 — — 5,227 Total (4) $ 23,409 $ 285 $ 430 $ 24,124 December 31, 2017 Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases (In millions) Investment grade (1) $ 17,866 $ 98 $ 663 $ 18,627 Speculative (2) 4,638 — — 4,638 Special mention (3) 29 — — 29 Total (4) $ 22,533 $ 98 $ 663 $ 23,294 (1) Investment-grade loans and leases consist of counterparties with strong credit quality and low expected credit risk and probability of default. Ratings apply to counterparties with a strong capacity to support the timely repayment of any financial commitment. (2) Speculative loans and leases consist of counterparties that face ongoing uncertainties or exposure to business, financial, or economic downturns. However, these counterparties may have financial flexibility or access to financial alternatives, which allow for financial commitments to be met. (3) Special mention loans and leases consist of counterparties with potential weakness that, if uncorrected, may result in deterioration of repayment prospects. (4) For those portfolios where there are a small number of loans each with a large balance, we review each loan annually for indicators of impairment. For those loans where no such indicators are identified, the loans are collectively evaluated for impairment. As of June 30, 2018 and December 31, 2017 , there were no indicators of impairment. |
Schedule of Activity in the Allowance for Loan Losses | The following table presents activity in the allowance for loan and lease losses for the periods indicated: Three Months Ended June 30, (In millions) 2018 2017 Allowance for loan and lease losses (1) : Beginning balance $ 54 $ 51 Provision for loan and lease losses 2 3 Charge-offs (1 ) — Ending balance $ 55 $ 54 Six Months Ended June 30, (In millions) 2018 2017 Allowance for loan and lease losses (1) : Beginning balance $ 54 $ 53 Provision for loan and lease losses 2 1 Charge-offs (1 ) — Ending balance $ 55 $ 54 (1) The provisions and charge-offs for loans and leases were attributable to exposure to senior secured loans to non-investment grade borrowers, purchased in connection with our participation in syndicated loans. |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes In The Carrying Amount Of Goodwill | The following table presents changes in the carrying amount of goodwill during the periods indicated: (In millions) Investment Servicing Investment Management Total Goodwill: Ending balance December 31, 2016 $ 5,550 $ 264 $ 5,814 Acquisitions 17 — 17 Divestitures and other reductions (9 ) — (9 ) Foreign currency translation 194 6 200 Ending balance December 31, 2017 5,752 270 6,022 Foreign currency translation (47 ) (2 ) (49 ) Ending balance June 30, 2018 $ 5,705 $ 268 $ 5,973 |
Schedule of Finite-Lived Intangible Assets | The following table presents changes in the net carrying amount of other intangible assets during the periods indicated: (In millions) Investment Servicing Investment Management Total Other intangible assets: Ending balance December 31, 2016 $ 1,539 $ 211 $ 1,750 Acquisitions 16 — 16 Divestitures (11 ) — (11 ) Amortization (183 ) (31 ) (214 ) Foreign currency translation and other, net 71 1 72 Ending balance December 31, 2017 1,432 181 1,613 Amortization (83 ) (15 ) (98 ) Foreign currency translation and other, net (15 ) — (15 ) Ending balance June 30, 2018 $ 1,334 $ 166 $ 1,500 The following table presents the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets by type as of the dates indicated: June 30, 2018 December 31, 2017 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Other intangible assets: Client relationships $ 2,633 $ (1,521 ) $ 1,112 $ 2,669 $ (1,470 ) $ 1,199 Core deposits 681 (335 ) 346 686 (320 ) 366 Other 136 (94 ) 42 142 (94 ) 48 Total $ 3,450 $ (1,950 ) $ 1,500 $ 3,497 $ (1,884 ) $ 1,613 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Assets [Abstract] | |
Components of Other Assets | The following table presents the components of other assets as of the dates indicated: (In millions) June 30, 2018 December 31, 2017 Securities borrowed (1) $ 22,789 $ 19,404 Derivative instruments, net 6,151 4,013 Bank-owned life insurance 3,285 3,242 Investments in joint ventures and other unconsolidated entities (2) 2,791 2,259 Collateral, net 2,263 473 Receivable for securities settlement 813 188 Prepaid expenses 425 364 Accounts receivable 339 348 Deposits with clearing organizations 131 120 Deferred tax assets, net of valuation allowance (3) 109 113 Income taxes receivable 44 97 Other (4) 414 397 Total $ 39,554 $ 31,018 (1) Refer to Note 8 for further information on the impact of collateral on our financial statement presentation of securities borrowing and securities lending transactions. (2) Includes certain equity securities held at fair value through profit and loss that were transferred from AFS as part of our adoption of ASU 2016-01. Refer to Note 1 for further information on this new accounting standard. (3) Deferred tax assets and liabilities recorded in our consolidated statement of condition are netted within the same tax jurisdiction. (4) Includes amounts held in escrow accounts at third parties related to the negotiated settlements in the transition management legal matter presented in Note 10 . |
Derivative Financial Instrume37
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The table below summarizes the maturities and the fixed interest rates paid for the hedged senior and subordinated notes: June 30, 2018 Maturity Fixed Interest Rate Paid Senior Notes 2020 2.55% 2021 4.38 2021 1.95 2022 2.65 2023 3.70 2024 3.30 2025 3.55 2026 2.65 Subordinated Notes 2023 3.10 |
Schedule of Outstanding Hedges: (Notional Amount) | The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments entered into in connection with our trading and asset-and-liability management activities as of the dates indicated: (In millions) June 30, December 31, 2017 Derivatives not designated as hedging instruments: Interest-rate contracts: Futures $ 5,906 $ 2,392 Foreign exchange contracts: Forward, swap and spot 2,224,255 1,679,976 Options purchased 752 350 Options written 419 302 Futures 10 50 Commodity and equity contracts: Commodity (1) 53 16 Equity (1) 68 50 Other: Stable value contracts 26,252 26,653 Deferred value awards (2) 558 473 Derivatives designated as hedging instruments: Interest-rate contracts: Swap agreements 11,316 11,047 Foreign exchange contracts: Forward and swap 3,996 28,913 (1) Primarily composed of positions held by a consolidated sponsored investment fund, more fully described in Note 11. (2) Represents grants of deferred value awards to employees; refer to refer to pages 154 to 155 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K |
Notional Amount of Interest Rate Swap Agreements Designated as Fair Value and Cash Flow Hedges | The following tables present the aggregate notional amounts of these interest rate contracts and the related assets or liabilities being hedged as of the dates indicated: June 30, 2018 (In millions) Fair Value Hedges Cash Total Investment securities available-for-sale $ 1,223 $ — $ 1,223 Long-term debt (1) 8,493 — 8,493 Floating-rate loans — 1,600 1,600 Total $ 9,716 $ 1,600 $ 11,316 December 31, 2017 (In millions) Fair Value Hedges Cash Total Investment securities available-for-sale $ 1,254 $ — $ 1,254 Long-term debt (1) 8,493 — 8,493 Floating rate loans — 1,300 1,300 Total $ 9,747 $ 1,300 $ 11,047 (1) As of June 30, 2018 , these fair value hedges decreased the carrying value of LTD presented in our consolidated statement of condition by $301 million . As of December 31, 2017 , these fair value hedges decreased the carrying value of long-term debt presented in our consolidated statement of condition by $87 million . |
Contractual and Weighted-Average Interest Rates, Which Include the Effects of Hedges Related to Financial Instruments | he following table presents the contractual and weighted average interest rates for long-term debt, which include the effects of the fair value hedges presented in the table above, for the periods indicated: Three Months Ended June 30, 2018 2017 Contractual Rates Rate Including Impact of Hedges Contractual Rates Rate Including Impact of Hedges Long-term debt 3.52 % 3.66 % 3.34 % 2.61 % Six Months Ended June 30, 2018 2017 Contractual Rate Contractual Rate Long-term debt 3.61 % 3.51 % 3.37 % 2.58 % |
Schedule of the Fair Values of Derivative Financial Instruments | The following tables present the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 8 to the consolidated financial statements in this Form 10-Q. Derivative Assets (1) Fair Value (In millions) June 30, December 31, 2017 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 17,332 $ 11,477 Other derivative contracts 2 1 Total $ 17,334 $ 11,478 Derivatives designated as hedging instruments: Foreign exchange contracts $ 48 $ 120 Interest-rate contracts — 8 Total $ 48 $ 128 (1) Derivative assets are included within other assets in our consolidated statement of condition. Derivative Liabilities (1) Fair Value (In millions) June 30, December 31, 2017 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 17,470 $ 11,361 Other derivative contracts 270 284 Total $ 17,740 $ 11,645 Derivatives designated as hedging instruments: Foreign exchange contracts $ 88 $ 107 Interest-rate contracts 106 100 Total $ 194 $ 207 (1) Derivative liabilities are included within other liabilities in our consolidated statement of condition. |
Impact of Derivatives on Consolidated Statement of Income | The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated: Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Three Months Ended June 30, Six Months Ended June 30, (In millions) 2018 2017 2018 2017 Derivatives not designated as hedging instruments: Foreign exchange contracts Trading services revenue $ 195 $ 170 $ 379 $ 333 Foreign exchange contracts Processing fees and other revenue (1) — (9 ) — (2 ) Foreign exchange contracts Interest expense (1) — — (15 ) — Interest-rate contracts Trading services revenue (2 ) 8 (4 ) 9 Other derivative contracts Trading services revenue (1 ) — — — Other derivative contracts Compensation and employee benefits (42 ) (29 ) (106 ) (95 ) Total $ 150 $ 140 $ 254 $ 245 (1) The first six months of 2018 includes approximately $15 million of swap costs related to the first quarter of 2018 that were reclassified from Processing fees and other revenues to NII. Amount of Gain (Loss) on Derivative Recognized in Other Comprehensive Income Amount of Gain (Loss) Reclassified from OCI to Consolidated Statement of Income Amount of Gain (Loss) on Derivatives Recognized in Consolidated Statement of Income Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, (In millions) 2018 2017 2018 2017 2018 2017 Derivatives designated as cash flow hedges: Interest-rate contracts $ (8 ) $ (1 ) Net interest income $ — $ — Net interest income $ — $ — Foreign exchange contracts 57 14 Net interest income — — Net interest income 7 7 $ 49 $ 13 $ — $ — $ 7 $ 7 Derivatives designated as net investment hedges: Foreign exchange contracts 71 (87 ) Gains (Losses) related to investment securities, net — — Gains (Losses) related to investment securities, net — — Total $ 71 $ (87 ) Total $ — $ — Total $ — $ — |
Schedule of Differences Between the Gains (Losses) on the Derivative and the Gains (Losses) on the Hedged Item | Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income Three Months Ended June 30, Three Months Ended June 30, (In millions) 2018 2017 2018 2017 Derivatives designated as fair value hedges: Foreign exchange contracts Processing fees and $ (30 ) $ 4 Investment securities Processing fees and $ 30 $ (4 ) Foreign exchange contracts Processing fees and other revenue (601 ) 102 FX deposit Processing fees and other revenue 601 (101 ) Interest-rate contracts (1) Net interest income 10 — Available-for-sale securities Net interest income (2) (9 ) — Interest-rate contracts (1) Net interest income (47 ) — Long-term debt Net interest income 44 — Interest-rate contracts (1) Processing fees and — 3 Available-for-sale securities Processing fees and (2) — (2 ) Interest-rate contracts (1) Processing fees and other revenue — 64 Long-term debt Processing fees and other revenue — (63 ) Total $ (668 ) $ 173 $ 666 $ (170 ) Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain Six Months Ended June 30, Six Months Ended June 30, (In millions) 2018 2017 2018 2017 Derivatives designated as fair value hedges: Foreign exchange contracts Processing fees and $ (43 ) $ 2 Investment securities Processing fees and $ 43 $ (2 ) Foreign exchange contracts Processing fees and other revenue (353 ) 1,081 FX deposit Processing fees and other revenue 353 (1,081 ) Interest-rate contracts (1) Net interest income 31 — Available-for-sale securities Net interest income (3) (30 ) — Interest-rate contracts (1) Net interest income (214 ) — Long-term debt Net interest income 200 — Interest-rate contracts (1) Processing fees and — 15 Available-for-sale securities Processing fees and (3) — (13 ) Interest-rate contracts (1) Processing fees and other revenue — 44 Long-term debt Processing fees and other revenue — (44 ) Total $ (579 ) $ 1,142 $ 566 $ (1,140 ) (1) As of January 1, 2018, we prospectively changed the presentation of gains (losses) on hedging instruments and hedge items designated as fair value hedges of interest rate risk, and any resulting hedge ineffectiveness, from processing fees and other revenue to NII. (2) In the three months ended June 30, 2018 and 2017 , $5 million and $3 million , respectively, of net unrealized (losses) gains on AFS investment securities designated in fair value hedges were recognized in OCI. |
Offsetting Arrangements (Tables
Offsetting Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Offsetting [Abstract] | |
Offsetting Assets | The following tables present information about the offsetting of assets related to derivative contracts and secured financing transactions, as of the dates indicated: Assets: June 30, 2018 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 17,380 $ (9,674 ) $ 7,706 $ — $ 7,706 Interest-rate contracts (6) — — — — — Other derivative contracts 2 — 2 — 2 Cash collateral and securities netting NA (1,557 ) (1,557 ) (100 ) (1,657 ) Total derivatives 17,382 (11,231 ) 6,151 (100 ) 6,051 Other financial instruments: Resale agreements and securities borrowing (7) 73,482 (47,108 ) 26,372 (26,063 ) 310 Total derivatives and other financial instruments $ 90,864 $ (58,339 ) $ 32,523 $ (26,163 ) $ 6,361 Assets: December 31, 2017 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 11,597 $ (5,548 ) $ 6,049 $ — $ 6,049 Interest-rate contracts (6) 8 — 8 — 8 Other derivative contracts 1 — 1 — 1 Cash collateral and securities netting NA (2,045 ) (2,045 ) (124 ) (2,169 ) Total derivatives 11,606 (7,593 ) 4,013 (124 ) 3,889 Other financial instruments: Resale agreements and securities borrowing (7) 70,079 (47,434 ) 22,645 (22,645 ) — Total derivatives and other financial instruments $ 81,685 $ (55,027 ) $ 26,658 $ (22,769 ) $ 3,889 (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which is also carried at fair value. For additional information about the measurement basis of these instruments, refer to pages 127 to 138 in Notes 1 and 2 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Includes securities in connection with our securities borrowing transactions. (5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. (6) Variation margin payments presented as settlements rather than collateral. (7) Included in the $26,372 million as of June 30, 2018 were $3,583 million of resale agreements and $22,789 million of collateral provided related to securities borrowing. Included in the $22,645 million as of December 31, 2017 were $3,241 million of resale agreements and $19,404 million of collateral provided related to securities borrowing. Resale agreements and collateral provided related to securities borrowing were recorded in securities purchased under resale agreements and other assets, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions. NA Not applicable |
Offsetting Liabilities | The following tables present information about the offsetting of liabilities related to derivative contracts and secured financing transactions, as of the dates indicated: Liabilities: June 30, 2018 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Cash and Securities Provided (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 17,558 $ (9,674 ) $ 7,884 $ — $ 7,884 Interest-rate contracts (6) 106 — 106 — 106 Other derivative contracts 270 — 270 — 270 Cash collateral and securities netting NA (2,934 ) (2,934 ) (330 ) (3,264 ) Total derivatives 17,934 (12,608 ) 5,326 (330 ) 4,996 Other financial instruments: Repurchase agreements and securities lending (7) 61,087 (47,108 ) 13,979 (12,509 ) 1,470 Total derivatives and other financial instruments $ 79,021 $ (59,716 ) $ 19,305 $ (12,839 ) $ 6,466 Liabilities: December 31, 2017 Gross Amounts Not Offset in Statement of Condition (In millions) Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Cash and Securities Provided (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 11,467 $ (5,548 ) $ 5,919 $ — $ 5,919 Interest-rate contracts (6) 100 — 100 — 100 Other derivative contracts 285 — 285 — 285 Cash collateral and securities netting NA (422 ) (422 ) (450 ) (872 ) Total derivatives 11,852 (5,970 ) 5,882 (450 ) 5,432 Other financial instruments: Repurchase agreements and securities lending (7) 54,127 (47,434 ) 6,693 (4,299 ) 2,394 Total derivatives and other financial instruments $ 65,979 $ (53,404 ) $ 12,575 $ (4,749 ) $ 7,826 (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which is also carried at fair value. For additional information about the measurement basis of these instruments, refer to pages 127 to 138 in Notes 1 and 2 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Includes securities provided in connection with our securities lending transactions. (5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. (6) Variation margin payments presented as settlements rather than collateral. (7) Included in the $13,979 million as of June 30, 2018 were $3,088 million of repurchase agreements and $10,891 million of collateral received related to securities lending transactions. Included in the $6,693 million as of December 31, 2017 were $2,842 million of repurchase agreements and $3,851 million of collateral received related to securities lending transactions. Repurchase agreements and collateral received related to securities lending were recorded in securities sold under repurchase agreements and accrued expenses and other liabilit ies, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions . NA Not applicable |
Securities Sold and Securities Loaned Under Repurchase Agreements | The following table summarizes our enhanced custody repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated: Remaining Contractual Maturity of the Agreements As of June 30, 2018 As of December 31, 2017 (1) (In millions) Overnight and Continuous Up to 30 Days Total Overnight and Continuous Repurchase agreements: U.S. Treasury and agency securities $ 45,123 $ — $ 45,123 $ 43,072 Total 45,123 — 45,123 43,072 Securities lending transactions: US Treasury and agency securities 115 — 115 — Corporate debt securities 88 — 88 35 Equity securities 8,596 165 8,761 11,020 Other (2) 7,000 — 7,000 — Total 15,799 165 15,964 11,055 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 60,922 $ 165 $ 61,087 $ 54,127 (1) As of December 31, 2017 , there were no balances with contractual maturities up to 30 days. (2) Represents a portion of underlying client assets related to our enhanced custody business, which assets clients have allowed us to transfer and re-pledge. |
Commitments and Guarantees (Tab
Commitments and Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantor Obligations | The following table presents the aggregate gross contractual amounts of our off-balance sheet commitments and off-balance sheet guarantees as of the dates indicated. (In millions) June 30, 2018 December 31, 2017 Commitments: Unfunded credit facilities $ 26,654 $ 26,488 Guarantees (1) : Indemnified securities financing $ 396,801 $ 381,817 Stable value protection 26,252 26,653 Standby letters of credit 2,955 3,158 (1) The potential losses associated with these guarantees equal the gross contractual amounts and do not consider the value of any collateral or reflect any participations to independent third parties. |
Schedule of Repurchase Agreements | The following table summarizes the aggregate fair values of indemnified securities financing and related collateral, as well as collateral invested in indemnified repurchase agreements, as of the dates indicated: (In millions) June 30, 2018 December 31, 2017 Fair value of indemnified securities financing $ 396,801 $ 381,817 Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing 416,084 400,828 Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements 59,391 61,270 Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements 63,016 65,272 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Preferred Shares | The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of June 30, 2018 : Issuance Date Depositary Shares Issued Ownership Interest Per Depositary Share Liquidation Preference Per Share Liquidation Preference Per Depositary Share Net Proceeds of Offering (In millions) Redemption Date (1) Preferred Stock (2) : Series C August 2012 20,000,000 1/4,000th $ 100,000 $ 25 $ 488 September 15, 2017 Series D February 2014 30,000,000 1/4,000th 100,000 25 742 March 15, 2024 Series E November 2014 30,000,000 1/4,000th 100,000 25 728 December 15, 2019 Series F May 2015 750,000 1/100th 100,000 1,000 742 September 15, 2020 Series G April 2016 20,000,000 1/4,000th 100,000 25 493 March 15, 2026 (1) On the redemption date, or any dividend declaration date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. (2) The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. |
Dividends Declared | The table below presents the dividends declared on common stock for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) Common Stock $ 0.42 $ 153 $ 0.38 $ 142 $ 0.84 $ 307 $ 0.76 $ 286 The following table presents the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated: Three Months Ended June 30, 2018 2017 Dividends Declared per Share Dividends Declared per Depositary Share Total (1) Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Preferred Stock: Series C $ 1,313 $ 0.33 $ 7 $ 1,313 $ 0.33 $ 7 Series D 1,475 0.37 11 1,475 0.37 11 Series E 1,500 0.38 11 1,500 0.38 11 Series F — — — — — — Series G 1,338 0.33 7 1,338 0.33 7 Total $ 36 $ 36 Six Months Ended June 30, 2018 2017 Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Preferred Stock: Series C $ 2,626 $ 0.66 $ 13 $ 2,626 $ 0.66 $ 13 Series D 2,950 0.74 22 2,950 0.74 22 Series E 3,000 0.76 22 3,000 0.76 22 Series F 2,625 26.25 20 2,625 26.25 20 Series G 2,676 0.66 14 2,676 0.66 14 Total $ 91 $ 91 (1) Dividends were paid in June 2018. |
Stock Repurchase Program | The table below presents the activity under the 2017 Program during the period indicated: Six Months Ended June 30, 2018 (1) Shares Acquired Average Cost per Share Total Acquired 2017 Program 3.3 $ 105.31 $ 350 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the after-tax components of AOCI as of the dates indicated: (In millions) June 30, 2018 December 31, 2017 Net unrealized gains (losses) on cash flow hedges $ (113 ) $ (56 ) Net unrealized gains (losses) on available-for-sale securities portfolio (112 ) 148 Net unrealized gains (losses) related to reclassified available-for-sale securities 22 19 Net unrealized gains (losses) on available-for-sale securities (90 ) 167 Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges (55 ) (64 ) Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries (30 ) (65 ) Other-than-temporary impairment on held-to-maturity securities related to factors other than credit (7 ) (6 ) Net unrealized gains (losses) on retirement plans (156 ) (170 ) Foreign currency translation (1,037 ) (815 ) Total $ (1,488 ) $ (1,009 ) The following table presents changes in AOCI by component, net of related taxes, for the periods indicated: Six Months Ended June 30, 2018 (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries Other-Than-Temporary Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2017 $ (56 ) $ 103 $ (65 ) $ (6 ) $ (170 ) $ (815 ) $ (1,009 ) Other comprehensive income (loss) before reclassifications (57 ) (254 ) 35 1 1 (222 ) (496 ) Amounts reclassified into (out of) earnings — 6 — (2 ) 13 — 17 Other comprehensive income (loss) (57 ) (248 ) 35 (1 ) 14 (222 ) (479 ) Balance as of June 30, 2018 $ (113 ) $ (145 ) $ (30 ) $ (7 ) $ (156 ) $ (1,037 ) $ (1,488 ) Six Months Ended June 30, 2017 (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries Other-Than-Temporary Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2016 $ 229 $ (286 ) $ 95 $ (9 ) $ (194 ) $ (1,875 ) $ (2,040 ) Other comprehensive income (loss) before reclassifications (247 ) 505 (101 ) 2 (1 ) 627 785 Amounts reclassified into (out of) earnings — (24 ) — — 9 — (15 ) Other comprehensive income (loss) (247 ) 481 (101 ) 2 8 627 770 Balance as of June 30, 2017 $ (18 ) $ 195 $ (6 ) $ (7 ) $ (186 ) $ (1,248 ) $ (1,270 ) |
Schedule of Reclassifications Out of AOCI | The following table presents after-tax reclassifications into earnings for the periods indicated: Three Months Ended June 30, 2018 2017 (In millions) Amounts Reclassified into Affected Line Item in Consolidated Statement of Income Available-for-sale securities: Net realized gains (losses) from sales of available-for-sale securities, net of related taxes of ($2) and zero, respectively $ 7 $ — Net gains (losses) from sales of available-for-sale securities Held-to-maturity securities: Other-than-temporary impairment on held-to-maturity securities related to factors other than credit (1 ) — Losses reclassified (from) to other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of $24 and $1, respectively 26 3 Compensation and employee benefits expenses Total reclassifications (out of) into AOCI $ 32 $ 3 Six Months Ended June 30, 2018 2017 (In millions) Amounts Reclassified into Affected Line Item in Consolidated Statement of Income Available-for-sale securities: Net realized gains (losses) from sales of available-for-sale securities, net of related taxes of ($3) and $16, respectively $ 6 $ (24 ) Net gains (losses) from sales of available-for-sale securities Held-to-maturity securities: Other-than-temporary impairment on held-to-maturity securities related to factors other than credit (2 ) — Losses reclassified (from) to other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of ($4) and ($2), respectively 13 9 Compensation and employee benefits expenses Total reclassifications (out of) into AOCI $ 17 $ (15 ) |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Regulatory Capital | The following table presents the regulatory capital structure, total risk-weighted assets, related regulatory capital ratios and the minimum required regulatory capital ratios for State Street and State Street Bank as of the dates indicated. As a result of changes in the methodologies used to calculate our regulatory capital ratios from period to period as the provisions of the Basel III final rule are phased in, the ratios presented in the table for each period-end are not directly comparable. Refer to the footnotes following the table. State Street State Street Bank (In millions) Basel III Advanced Approaches June 30, 2018 (1) Basel III Standardized Approach June 30, 2018 (2) Basel III Advanced Approaches December 31, 2017 (1) Basel III Standardized Approach December 31, 2017 (2) Basel III Advanced Approaches June 30, 2018 (1) Basel III Standardized Approach June 30, 2018 (2) Basel III Advanced Approaches December 31, 2017 (1) Basel III Standardized Approach December 31, 2017 (2) Common shareholders' equity: Common stock and related surplus $ 10,324 $ 10,324 $ 10,302 $ 10,302 $ 11,612 $ 11,612 $ 11,612 $ 11,612 Retained earnings 19,856 19,856 18,856 18,856 13,189 13,189 12,312 12,312 Accumulated other comprehensive income (loss) (1,446 ) (1,446 ) (972 ) (972 ) (1,251 ) (1,251 ) (809 ) (809 ) Treasury stock, at cost (9,317 ) (9,317 ) (9,029 ) (9,029 ) — — — — Total 19,417 19,417 19,157 19,157 23,550 23,550 23,115 23,115 Regulatory capital adjustments: Goodwill and other intangible assets, net of associated deferred tax liabilities (3) (7,008 ) (7,008 ) (6,877 ) (6,877 ) (6,711 ) (6,711 ) (6,579 ) (6,579 ) Other adjustments (186 ) (186 ) (76 ) (76 ) (44 ) (44 ) (5 ) (5 ) Common equity tier 1 capital 12,223 12,223 12,204 12,204 16,795 16,795 16,531 16,531 Preferred stock 3,196 3,196 3,196 3,196 — — — — Trust preferred capital securities subject to phase-out from tier 1 capital — — — — — — — — Other adjustments — — (18 ) (18 ) — — — — Tier 1 capital 15,419 15,419 15,382 15,382 16,795 16,795 16,531 16,531 Qualifying subordinated long-term debt 765 765 980 980 765 765 983 983 Trust preferred capital securities phased out of tier 1 capital — — — — — — — — ALLL and other — 73 4 72 — 73 — 72 Other adjustments — — 1 1 — — — — Total capital $ 16,184 $ 16,257 $ 16,367 $ 16,435 $ 17,560 $ 17,633 $ 17,514 $ 17,586 Risk-weighted assets: Credit risk $ 48,308 $ 106,063 $ 49,976 $ 101,349 $ 45,689 $ 103,156 $ 47,448 $ 98,433 Operational risk (4) 45,991 NA 45,822 NA 45,423 NA 45,295 NA Market risk (5) 4,203 1,677 3,358 1,334 4,205 1,677 3,375 1,334 Total risk-weighted assets $ 98,502 $ 107,740 $ 99,156 $ 102,683 $ 95,317 $ 104,833 $ 96,118 $ 99,767 Adjusted quarterly average assets $ 216,896 $ 216,896 $ 209,328 $ 209,328 $ 214,670 $ 214,670 $ 206,070 $ 206,070 Capital Ratios: 2018 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge (6) 2017 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge (7) Common equity tier 1 capital 7.5 % 6.5 % 12.4 % 11.3 % 12.3 % 11.9 % 17.6 % 16.0 % 17.2 % 16.6 % Tier 1 capital 9.0 8.0 15.7 14.3 15.5 15.0 17.6 16.0 17.2 16.6 Total capital 11.0 10.0 16.4 15.1 16.5 16.0 18.4 16.8 18.2 17.6 Tier 1 leverage 4.0 4.0 7.1 7.1 7.3 7.3 7.8 7.8 8.0 8.0 (1) CET1 capital, tier 1 capital and total capital ratios as of June 30, 2018 and December 31, 2017 were calculated in conformity with the advanced approaches provisions of the Basel III final rule. Tier 1 leverage ratio as of June 30, 2018 and December 31, 2017 were calculated in conformity with the Basel III final rule. (2) CET1 capital, tier 1 capital and total capital ratios as of June 30, 2018 and December 31, 2017 were calculated in conformity with the standardized approach provisions of the Basel III final rule. Tier 1 leverage ratio as of June 30, 2018 and December 31, 2017 were calculated in conformity with the Basel III final rule. (3) Amounts for State Street and State Street Bank as of June 30, 2018 consisted of goodwill, net of associated deferred tax liabilities, and 100% of other intangible assets, net of associated deferred tax liabilities. Amounts for State Street and State Street Bank as of December 31, 2017 consisted of goodwill, net of deferred tax liabilities and 80% of other intangible assets, net of associated deferred tax liabilities. Intangible assets, net of associated deferred tax liabilities is phased in as a deduction from capital, in conformity with the Basel III final rule. (4) Under the current advanced approaches rules and regulatory guidance concerning operational risk models, RWA attributable to operational risk can vary substantially from period-to-period, without direct correlation to the effects of a particular loss event on our results of operations and financial condition and impacting dates and periods that may differ from the dates and periods as of and during which the loss event is reflected in our financial statements, with the timing and categorization dependent on the processes for model updates and, if applicable, model revalidation and regulatory review and related supervisory processes. An individual loss event can have a significant effect on the output of our operational risk RWA under the advanced approaches depending on the severity of the loss event and its categorization among the seven Basel-defined UOMs. (5) Market risk risk-weighted assets reported in conformity with the Basel III advanced approaches included a CVA which reflected the risk of potential fair value adjustments for credit risk reflected in our valuation of over-the-counter derivative contracts. The CVA was not provided for in the final market risk capital rule; however, it was required by the advanced approaches provisions of the Basel III final rule. We used a simple CVA approach in conformity with the Basel III advanced approaches. (6) Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of June 30, 2018 . (7) Minimum requirements will be phased in up to full implementation beginning on January 1, 2019; minimum requirements listed are as of December 31, 2017 . NA Not applicable |
Net Interest Income (Tables)
Net Interest Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
Components of Interest Revenue and Interest Expense | The following table presents the components of interest income and interest expense, and related NII, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2018 2017 2018 2017 Interest income: Deposits with banks $ 90 $ 41 $ 172 $ 76 Investment securities: U.S. Treasury and federal agencies 280 208 534 420 State and political subdivisions 44 56 96 114 Other investments 140 164 298 323 Securities purchased under resale agreements 81 69 159 115 Loans and leases 169 118 325 224 Other interest-earning assets 103 44 180 78 Total interest income 907 700 1,764 1,350 Interest expense: Deposits 89 14 152 57 Securities sold under repurchase agreements 6 — 7 1 Short-term borrowings 4 3 7 5 Long-term debt 97 75 194 148 Other interest-bearing liabilities 52 33 102 54 Total interest expense 248 125 462 265 Net interest income $ 659 $ 575 $ 1,302 $ 1,085 |
Expenses (Tables)
Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Expenses [Abstract] | |
Schedule of Expenses | The following table presents the components of other expenses for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2018 2017 2018 2017 Insurance $ 32 $ 28 $ 64 $ 58 Regulatory fees and assessments 29 18 59 45 Sales advertising public relations 29 15 55 28 Bank operations 22 19 39 34 Litigation 5 (17 ) 7 (17 ) Other 89 69 183 135 Total other expenses $ 206 $ 132 $ 407 $ 283 |
Restructuring and Related Costs | The following table presents aggregate restructuring activity for the periods indicated: (In millions) Employee Real Estate Asset and Other Write-offs Total Accrual Balance at December 31, 2016 $ 37 $ 17 $ 2 $ 56 Accruals for Beacon 14 — 2 16 Payments and Other Adjustments (13 ) (3 ) (2 ) (18 ) Accrual Balance at March 31, 2017 38 14 2 54 Accruals for Beacon 60 — 2 62 Payments and Other Adjustments (11 ) (3 ) (2 ) (16 ) Accrual Balance at June 30, 2017 $ 87 $ 11 $ 2 $ 100 Accrual Balance at December 31, 2017 $ 166 $ 32 $ 3 $ 201 Accruals for Beacon — — — — Payments and Other Adjustments (22 ) (4 ) — (26 ) Accrual Balance at March 31, 2018 144 28 3 175 Accruals for Beacon — — — — Payments and Other Adjustments (31 ) (3 ) — (34 ) Accrual Balance at June 30, 2018 $ 113 $ 25 $ 3 $ 141 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per common share for the periods indicated: Three Months Ended June 30, (Dollars in millions, except per share amounts) 2018 2017 Net income $ 734 $ 620 Less: Preferred stock dividends (36 ) (36 ) Net income available to common shareholders $ 698 $ 584 Average common shares outstanding (In thousands): Basic average common shares 365,619 375,395 Effect of dilutive securities: equity-based awards 4,791 5,520 Diluted average common shares 370,410 380,915 Anti-dilutive securities (2) 1,206 293 Earnings per Common Share: Basic $ 1.91 $ 1.56 Diluted (3) 1.88 1.53 Six Months Ended June 30, (Dollars in millions, except per share amounts) 2018 2017 Net income $ 1,395 $ 1,122 Less: Preferred stock dividends (91 ) (91 ) Dividends and undistributed earnings allocated to participating securities (1) (1 ) (1 ) Net income available to common shareholders $ 1,303 $ 1,030 Average common shares outstanding (In thousands): Basic average common shares 366,524 378,293 Effect of dilutive securities: equity-based awards 4,891 5,196 Diluted average common shares 371,415 383,489 Anti-dilutive securities (2) 2 527 Earnings per Common Share: Basic $ 3.55 $ 2.72 Diluted (3) 3.51 2.69 (1) Represents the portion of net income available to common equity allocated to participating securities, composed of unvested and fully vested SERP shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings. (2) Represents equity-based awards outstanding but not included in the computation of diluted average common shares, because their effect was anti-dilutive. For additional information about equity-based awards, refer to pages 173 to 175 in Note 18 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K. (3) Calculations reflect allocation of earnings to participating securities using the two-class method, as this computation is more dilutive than the treasury stock method. |
Line of Business Information (T
Line of Business Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Summary of Line of Business Results | The following is a summary of our line-of-business results for the periods indicated. The "Other" column represents costs incurred that are not allocated to a specific line of business, including certain severance and restructuring costs, acquisition costs and certain provisions for legal contingencies. Three Months Ended June 30, Investment Investment Other Total (Dollars in millions) 2018 2017 2018 2017 2018 2017 2018 2017 Servicing fees $ 1,381 $ 1,339 $ — $ — $ — $ — $ 1,381 $ 1,339 Management fees — — 465 397 — — 465 397 Trading services 282 272 33 17 — — 315 289 Securities finance 154 179 — — — — 154 179 Processing fees and other 41 32 2 (1 ) — — 43 31 Total fee revenue 1,858 1,822 500 413 — — 2,358 2,235 Net interest income 663 576 (4 ) (1 ) — — 659 575 Gains (losses) related to investment securities, net 9 — — — — — 9 — Total revenue 2,530 2,398 496 412 — — 3,026 2,810 Provision for loan losses 2 3 — — — — 2 3 Total expenses 1,693 1,649 389 311 77 71 2,159 2,031 Income before income tax expense $ 835 $ 746 $ 107 $ 101 $ (77 ) $ (71 ) $ 865 $ 776 Pre-tax margin 33 % 31 % 22 % 25 % 29 % 28 % Six Months Ended June 30, Investment Investment Other Total (Dollars in millions) 2018 2017 2018 2017 2018 2017 2018 2017 Servicing fees $ 2,802 $ 2,635 $ — $ — $ — $ — $ 2,802 $ 2,635 Management fees — — 937 779 — — 937 779 Trading services 555 529 64 35 — — 619 564 Securities finance 295 312 — — — — 295 312 Processing fees and other 82 138 1 5 — — 83 143 Total fee revenue 3,734 3,614 1,002 819 — — 4,736 4,433 Net interest income 1,311 1,085 (9 ) — — — 1,302 1,085 Gains (losses) related to investment securities, net 7 (40 ) — — — — 7 (40 ) Total revenue 5,052 4,659 993 819 — — 6,045 5,478 Provision for loan losses 2 1 — — — — 2 1 Total expenses 3,551 3,377 787 640 77 100 4,415 4,117 Income before income tax expense $ 1,499 $ 1,281 $ 206 $ 179 $ (77 ) $ (100 ) $ 1,628 $ 1,360 Pre-tax margin 30 % 27 % 21 % 22 % 27 % 25 % |
Revenue from Contracts with C46
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | n the following table, revenue is disaggregated by our two lines of business and by revenue stream for which the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended June 30, 2018 Investment Servicing Investment Management Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2018 Servicing fees $ 1,381 $ — $ 1,381 $ — $ — $ — $ 1,381 Management fees — — — 465 — 465 465 Trading services 91 191 282 33 — 33 315 Securities finance 90 64 154 — — — 154 Processing fees and other 23 18 41 — 2 2 43 Total fee revenue 1,585 273 1,858 498 2 500 2,358 Net interest income — 663 663 — (4 ) (4 ) 659 Securities gains/ (losses) — 9 9 — — — 9 Total revenue $ 1,585 $ 945 $ 2,530 $ 498 $ (2 ) $ 496 $ 3,026 Six Months Ended June 30, 2018 Investment Servicing Investment Management Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2018 Servicing fees $ 2,802 $ — $ 2,802 $ — $ — $ — $ 2,802 Management fees — — — 937 — 937 937 Trading services 186 369 555 64 — 64 619 Securities finance 167 128 295 — — — 295 Processing fees and other 43 39 82 — 1 1 83 Total fee revenue 3,198 536 3,734 1,001 1 1,002 4,736 Net interest income — 1,311 1,311 — (9 ) (9 ) 1,302 Securities gains/ (losses) — 7 7 — — — 7 Total revenue $ 3,198 $ 1,854 $ 5,052 $ 1,001 $ (8 ) $ 993 $ 6,045 |
Non-U.S. Activities (Tables)
Non-U.S. Activities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segments, Geographical Areas [Abstract] | |
Schedule of Results from Non-U.S. Operations | The following table presents our U.S. and non-U.S. financial results for the periods indicated: Three Months Ended June 30, 2018 2017 (In millions) Non-U.S. U.S. Total Non-U.S. U.S. Total Total revenue $ 1,322 $ 1,704 $ 3,026 $ 1,172 $ 1,638 $ 2,810 Income before income taxes 427 438 865 324 452 776 Six Months Ended June 30, 2018 2017 (In millions) Non-U.S. U.S. Total Non-U.S. U.S. Total Total revenue $ 2,643 $ 3,402 $ 6,045 $ 2,268 $ 3,210 $ 5,478 Income before income taxes 846 782 1,628 583 777 1,360 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Basis of Presentation (Details) - 6 months ended Jun. 30, 2018 | segment | line_of_business |
Accounting Policies [Abstract] | ||
Number of lines of business | 2 | 2 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - New Accounting Pronouncement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase in revenues | $ 3,026 | $ 2,810 | $ 6,045 | $ 5,478 | |
Increase in management fees | 465 | 397 | 937 | 779 | |
Increase in trading services revenue | 315 | 289 | 619 | 564 | |
Increase in expenses | 2,159 | 2,031 | 4,415 | 4,117 | |
Increase in transaction processing services | 246 | 207 | 488 | 404 | |
Increase in other expenses | $ 206 | $ 132 | 407 | $ 283 | |
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase in revenues | 135 | ||||
Increase in management fees | 90 | ||||
Increase in trading services revenue | 35 | ||||
Increase in other revenues | 10 | ||||
Increase in expenses | 65 | ||||
Increase in transaction processing services | 30 | ||||
Increase in other expenses | 90 | ||||
Increase in all other expenses | $ 15 | ||||
Accounting Standards Update 2016-01 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Money market funds reclassified | $ 397 | ||||
Available-for-sale equity securities reclassified | $ 46 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Assets, level 1 to level 2 transfers | $ 0 | $ 0 |
Assets, level 2 to level 1 transfers | 0 | 9,000,000 |
Liabilities, level 1 to level 2 transfers | 0 | 0 |
Liabilities, level 2 to level 1 transfers | $ 0 | $ 0 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | $ 1,160 | $ 1,093 |
Investment securities available-for-sale | 47,348 | 57,121 |
Derivative asset, collateral, cash offset | 1,557 | 2,045 |
Derivative liability, collateral, cash offset | 2,934 | 422 |
Non-US debt securities, covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,959 | 3,537 |
Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,735 | 1,885 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 1,160 | 1,093 |
Investment securities available-for-sale | 47,348 | 57,121 |
Derivative asset, Impact of Netting | (11,231) | (7,593) |
Derivative assets | 6,151 | 4,013 |
Other2 | 449 | |
Other assets - impact of netting | 0 | |
Total | 55,108 | 62,227 |
Derivative liability, Impact of Netting | (12,608) | (5,970) |
Derivative liabilities | 5,326 | 5,882 |
Total liabilities carried at fair value | 5,396 | 5,921 |
Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, Impact of Netting | (11,231) | (7,593) |
Derivative assets | 6,149 | 4,004 |
Derivative liability, Impact of Netting | (12,608) | (5,970) |
Derivative liabilities | 4,950 | 5,498 |
Recurring | Interest-rate contracts(6) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, Impact of Netting | 0 | |
Derivative assets | 8 | |
Derivative liability, Impact of Netting | 0 | 0 |
Derivative liabilities | 106 | 100 |
Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, Impact of Netting | 0 | 0 |
Derivative assets | 2 | 1 |
Derivative liability, Impact of Netting | 0 | 0 |
Derivative liabilities | 270 | 284 |
Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 39 | 39 |
Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 509 | 482 |
Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 612 | 572 |
Investment securities available-for-sale | 2,066 | 2,560 |
Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 11 | 223 |
Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 15,893 | 10,872 |
Recurring | Total U.S. Treasury and federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 15,904 | 11,095 |
Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,567 | 3,358 |
Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 617 | 1,542 |
Recurring | Asset-backed securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 851 | 1,447 |
Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 3,035 | 6,347 |
Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 2,615 | 6,695 |
Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,657 | 2,947 |
Recurring | Non-U.S. debt securities, government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 13,072 | 10,721 |
Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 4,452 | 6,108 |
Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 21,796 | 26,471 |
Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 4,228 | 9,151 |
Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 319 | 1,054 |
Recurring | U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 46 | |
Recurring | U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 397 | |
Quoted Market Prices in Active Markets (Level 1) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 492 | 472 |
Investment securities available-for-sale | 11 | 11 |
Derivative asset | 2 | 9 |
Other2 | 0 | |
Total | 505 | 492 |
Derivative liability | 6 | 1 |
Total liabilities carried at fair value | 76 | 40 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Interest-rate contracts(6) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 8 | |
Derivative liability | 4 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 2 | 1 |
Derivative liability | 2 | 1 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 39 | 39 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 374 | 389 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 79 | 44 |
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 11 | 11 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Total U.S. Treasury and federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 11 | 11 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | |
Quoted Market Prices in Active Markets (Level 1) | Recurring | U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 668 | 621 |
Investment securities available-for-sale | 45,843 | 54,984 |
Derivative asset | 17,373 | 11,596 |
Other2 | 449 | |
Total | 64,333 | 67,201 |
Derivative liability | 17,922 | 11,850 |
Total liabilities carried at fair value | 17,922 | 11,850 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 17,373 | 11,596 |
Derivative liability | 17,552 | 11,467 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Interest-rate contracts(6) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Derivative liability | 102 | 100 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 268 | 283 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 135 | 93 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 533 | 528 |
Investment securities available-for-sale | 2,066 | 2,560 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 212 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 15,893 | 10,872 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Total U.S. Treasury and federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 15,893 | 11,084 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,567 | 3,358 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 617 | 1,542 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 89 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 2,184 | 4,989 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 2,615 | 6,576 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,183 | 2,545 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 13,072 | 10,721 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 4,283 | 5,904 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 21,153 | 25,746 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 4,228 | 9,108 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 319 | 1,054 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 46 | |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 397 | |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Investment securities available-for-sale | 1,494 | 2,126 |
Derivative asset | 7 | 1 |
Other2 | 0 | |
Total | 1,501 | 2,127 |
Derivative liability | 6 | 1 |
Total liabilities carried at fair value | 6 | 1 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 7 | 1 |
Derivative liability | 6 | 1 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Interest-rate contracts(6) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Derivative liability | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Total U.S. Treasury and federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 851 | 1,358 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 851 | 1,358 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 119 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 474 | 402 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 169 | 204 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 643 | 725 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 43 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | U.S. equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | U.S. money-market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | |
U.S. government securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account liabilities | 39 | |
U.S. government securities | Quoted Market Prices in Active Markets (Level 1) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account liabilities | 39 | |
U.S. government securities | Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account liabilities | 0 | |
U.S. government securities | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account liabilities | $ 0 | |
Other | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account liabilities | 70 | |
Other | Quoted Market Prices in Active Markets (Level 1) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account liabilities | 70 | |
Other | Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account liabilities | 0 | |
Other | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account liabilities | 0 | |
Trading account liabilities, impact of netting | $ 0 |
Fair Value - Schedule of Fair52
Fair Value - Schedule of Fair Value Measurements, Assets, Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | $ 1,316 | $ 1,265 | $ 2,127 | $ 1,345 |
Total realized and unrealized gain (losses) recorded in revenue | 4 | 3 | 3 | (3) |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (2) | (2) | (4) | 0 |
Purchases | 273 | 220 | 702 | 439 |
Sales | (37) | (984) | ||
Settlements | (53) | (119) | (78) | (414) |
Transfers into Level 3 | 152 | 68 | 152 | |
Transfers out of Level 3 | (169) | (333) | (169) | |
Fair value, end of period | 1,501 | 1,350 | 1,501 | 1,350 |
Change in unrealized gains (losses) related to financial instruments held | 2 | 2 | 2 | 2 |
Derivative instruments, assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 3 | 2 | 1 | 8 |
Total realized and unrealized gain (losses) recorded in revenue | 3 | 1 | 1 | (6) |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases | 4 | 2 | 5 | 7 |
Sales | 0 | 0 | ||
Settlements | (3) | 0 | 0 | (4) |
Transfers into Level 3 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | 0 | |
Fair value, end of period | 7 | 5 | 7 | 5 |
Change in unrealized gains (losses) related to financial instruments held | 2 | 2 | 2 | 2 |
Foreign exchange contracts | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 3 | 2 | 1 | 8 |
Total realized and unrealized gain (losses) recorded in revenue | 3 | 1 | 1 | (6) |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases | 4 | 2 | 5 | 7 |
Sales | 0 | 0 | ||
Settlements | (3) | 0 | 0 | (4) |
Transfers into Level 3 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | 0 | |
Fair value, end of period | 7 | 5 | 7 | 5 |
Change in unrealized gains (losses) related to financial instruments held | 2 | 2 | 2 | 2 |
Asset-backed securities, student loans | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 99 | 97 | ||
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 | ||
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 2 | ||
Purchases | 0 | 0 | ||
Settlements | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | (99) | (99) | ||
Fair value, end of period | 0 | 0 | ||
Asset-backed securities, other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 826 | 771 | 1,358 | 905 |
Total realized and unrealized gain (losses) recorded in revenue | 1 | 1 | 2 | 2 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (2) | (1) | (3) | (1) |
Purchases | 0 | 199 | 318 | 354 |
Sales | 0 | (636) | ||
Settlements | 26 | (120) | 21 | (410) |
Transfers into Level 3 | 101 | 0 | 101 | |
Transfers out of Level 3 | 0 | (209) | 0 | |
Fair value, end of period | 851 | 951 | 851 | 951 |
Asset-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 826 | 870 | 1,358 | 1,002 |
Total realized and unrealized gain (losses) recorded in revenue | 1 | 1 | 2 | 2 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (2) | (1) | (3) | 1 |
Purchases | 0 | 199 | 318 | 354 |
Sales | 0 | (636) | ||
Settlements | 26 | (120) | 21 | (410) |
Transfers into Level 3 | 101 | 0 | 101 | |
Transfers out of Level 3 | (99) | (209) | (99) | |
Fair value, end of period | 851 | 951 | 851 | 951 |
Non-U.S. debt securities, mortgage-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 119 | |||
Total realized and unrealized gain (losses) recorded in revenue | 0 | |||
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | |||
Purchases | 0 | |||
Sales | 0 | |||
Settlements | 0 | |||
Transfers into Level 3 | 0 | |||
Transfers out of Level 3 | (119) | |||
Fair value, end of period | 0 | 0 | ||
Non-U.S. debt securities, asset-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 272 | 59 | 402 | 32 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 1 | 0 | 1 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | (1) | (1) | (1) |
Purchases | 269 | 0 | 380 | 31 |
Sales | 0 | (311) | ||
Settlements | (67) | (16) | (64) | (20) |
Transfers into Level 3 | 51 | 68 | 51 | |
Transfers out of Level 3 | (31) | 0 | (31) | |
Fair value, end of period | 474 | 63 | 474 | 63 |
Non-U.S. debt securities, other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 178 | 256 | 204 | 248 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 5 |
Sales | 0 | 0 | ||
Settlements | (9) | 18 | (35) | 21 |
Transfers into Level 3 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | 0 | |
Fair value, end of period | 169 | 274 | 169 | 274 |
Total non-U.S. debt securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 450 | 315 | 725 | 280 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 1 | 0 | 1 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | (1) | (1) | (1) |
Purchases | 269 | 0 | 380 | 36 |
Sales | 0 | (311) | ||
Settlements | (76) | 2 | (99) | 1 |
Transfers into Level 3 | 51 | 68 | 51 | |
Transfers out of Level 3 | (31) | (119) | (31) | |
Fair value, end of period | 643 | 337 | 643 | 337 |
State and political subdivisions | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 37 | 39 | 43 | 39 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | (1) | 0 |
Sales | (37) | (37) | ||
Settlements | 0 | (1) | 0 | (1) |
Transfers into Level 3 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | (5) | 0 | |
Fair value, end of period | 0 | 38 | 0 | 38 |
Investment securities available-for-sale | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 1,313 | 1,263 | 2,126 | 1,337 |
Total realized and unrealized gain (losses) recorded in revenue | 1 | 2 | 2 | 3 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (2) | (2) | (4) | 0 |
Purchases | 269 | 218 | 697 | 432 |
Sales | (37) | (984) | ||
Settlements | (50) | (119) | (78) | (410) |
Transfers into Level 3 | 152 | 68 | 152 | |
Transfers out of Level 3 | (169) | (333) | (169) | |
Fair value, end of period | $ 1,494 | 1,345 | $ 1,494 | 1,345 |
Collateralized mortgage obligations | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 39 | 16 | ||
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 | ||
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 | ||
Purchases | 0 | 23 | ||
Settlements | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | (39) | (39) | ||
Fair value, end of period | 0 | 0 | ||
Other U.S. debt securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value, beginning of period | 0 | 0 | ||
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 | ||
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 | ||
Purchases | 19 | 19 | ||
Settlements | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair value, end of period | $ 19 | $ 19 |
Fair Value - Fair Value Inputs,
Fair Value - Fair Value Inputs, Assets and Liabilities, Quantitative Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Investment securities available-for-sale | $ 47,348 | $ 57,121 |
Asset-backed securities, other | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Investment securities available-for-sale | 851 | 1,447 |
State and political subdivisions | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Investment securities available-for-sale | $ 4,228 | $ 9,151 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Option model | Derivative instruments, liabilities | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Volatility | 8.30% | 7.20% |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Option model | Derivative instruments, assets | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Volatility | 8.40% | 7.20% |
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Total | $ 7 | $ 1 |
Total | 6 | 1 |
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Derivative instruments, liabilities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative instruments, foreign exchange contracts | 6 | 1 |
Significant Unobservable Inputs Readily Available | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Derivative instruments, assets | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative instruments, foreign exchange contracts | $ 7 | $ 1 |
Fair Value - Carrying Value and
Fair Value - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Financial Assets: | ||||
Cash and due from banks | $ 3,886 | $ 2,107 | $ 3,156 | $ 1,314 |
Interest-bearing deposits with banks | 76,366 | 67,227 | ||
Securities purchased under resale agreements | 3,583 | 3,241 | ||
Investment securities held-to-maturity | 38,805 | 40,255 | ||
Financial Liabilities: | ||||
Non-interest-bearing | 52,316 | 47,175 | ||
Interest-bearing—U.S. | 57,407 | 50,139 | ||
Interest-bearing—non-U.S. | 76,940 | 87,582 | ||
Securities sold under repurchase agreements | 3,088 | 2,842 | ||
Other short-term borrowings | 1,103 | 1,144 | ||
Reported Amount | ||||
Financial Assets: | ||||
Cash and due from banks | 3,886 | 2,107 | ||
Interest-bearing deposits with banks | 76,366 | 67,227 | ||
Securities purchased under resale agreements | 3,583 | 3,241 | ||
Investment securities held-to-maturity | 39,594 | 40,458 | ||
Net loans (excluding leases) | 23,638 | 22,577 | ||
Other2 | 7,000 | |||
Financial Liabilities: | ||||
Non-interest-bearing | 52,316 | 47,175 | ||
Interest-bearing—U.S. | 57,407 | 50,139 | ||
Interest-bearing—non-U.S. | 76,940 | 87,582 | ||
Securities sold under repurchase agreements | 3,088 | 2,842 | ||
Other short-term borrowings | 1,103 | 1,144 | ||
Long-term debt | 10,387 | 11,620 | ||
Other2 | 7,000 | |||
Estimated Fair Value | ||||
Financial Assets: | ||||
Cash and due from banks | 3,886 | 2,107 | ||
Interest-bearing deposits with banks | 76,366 | 67,227 | ||
Securities purchased under resale agreements | 3,583 | 3,241 | ||
Investment securities held-to-maturity | 38,805 | 40,255 | ||
Net loans (excluding leases) | 23,613 | 22,482 | ||
Other2 | 7,000 | |||
Financial Liabilities: | ||||
Non-interest-bearing | 52,316 | 47,175 | ||
Interest-bearing—U.S. | 57,407 | 50,139 | ||
Interest-bearing—non-U.S. | 76,940 | 87,582 | ||
Securities sold under repurchase agreements | 3,088 | 2,842 | ||
Other short-term borrowings | 1,103 | 1,144 | ||
Long-term debt | 10,597 | 11,919 | ||
Other2 | 7,000 | |||
Estimated Fair Value | Quoted Market Prices in Active Markets (Level 1) | ||||
Financial Assets: | ||||
Cash and due from banks | 3,886 | 2,107 | ||
Interest-bearing deposits with banks | 0 | 0 | ||
Securities purchased under resale agreements | 0 | 0 | ||
Investment securities held-to-maturity | 15,639 | 16,814 | ||
Net loans (excluding leases) | 0 | 0 | ||
Other2 | 0 | |||
Financial Liabilities: | ||||
Non-interest-bearing | 0 | 0 | ||
Interest-bearing—U.S. | 0 | 0 | ||
Interest-bearing—non-U.S. | 0 | 0 | ||
Securities sold under repurchase agreements | 0 | 0 | ||
Other short-term borrowings | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Other2 | 0 | |||
Estimated Fair Value | Pricing Methods with Significant Observable Market Inputs (Level 2) | ||||
Financial Assets: | ||||
Cash and due from banks | 0 | 0 | ||
Interest-bearing deposits with banks | 76,366 | 67,227 | ||
Securities purchased under resale agreements | 3,583 | 3,241 | ||
Investment securities held-to-maturity | 23,043 | 23,318 | ||
Net loans (excluding leases) | 23,571 | 22,431 | ||
Other2 | 7,000 | |||
Financial Liabilities: | ||||
Non-interest-bearing | 52,316 | 47,175 | ||
Interest-bearing—U.S. | 57,407 | 50,139 | ||
Interest-bearing—non-U.S. | 76,940 | 87,582 | ||
Securities sold under repurchase agreements | 3,088 | 2,842 | ||
Other short-term borrowings | 1,103 | 1,144 | ||
Long-term debt | 10,346 | 11,639 | ||
Other2 | 7,000 | |||
Estimated Fair Value | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | ||||
Financial Assets: | ||||
Cash and due from banks | 0 | 0 | ||
Interest-bearing deposits with banks | 0 | 0 | ||
Securities purchased under resale agreements | 0 | 0 | ||
Investment securities held-to-maturity | 123 | 123 | ||
Net loans (excluding leases) | 42 | 51 | ||
Other2 | 0 | |||
Financial Liabilities: | ||||
Non-interest-bearing | 0 | 0 | ||
Interest-bearing—U.S. | 0 | 0 | ||
Interest-bearing—non-U.S. | 0 | 0 | ||
Securities sold under repurchase agreements | 0 | 0 | ||
Other short-term borrowings | 0 | 0 | ||
Long-term debt | 251 | 280 | ||
Other2 | 0 | |||
Nonrecurring Measurement Basis | Estimated Fair Value | ||||
Financial Assets: | ||||
Net loans (excluding leases) | $ 22 | $ 3 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)security | Jun. 30, 2017USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Pledged securities not separately reported | $ 33,000 | $ 33,000 | $ 48,000 | |||
Net impairment losses | $ 1 | $ 1 | 1 | $ 1 | ||
Gross pre-tax unrealized losses | $ 1,404 | |||||
Number of securities in loss position | security | 1,118 | |||||
US Treasury and federal agencies, mortgage-backed securities | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Securities sold | $ 16,000 | |||||
Loss on sale of securities | $ 8 | |||||
Minimum | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Available-for-sale securities transferred to held to maturity | 10 years | |||||
Maximum | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Available-for-sale securities transferred to held to maturity | 42 years | |||||
Accounting Standards Update 2016-01 | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||||
Money market funds reclassified | $ 397 | |||||
Available-for-sale equity securities reclassified | $ 46 |
Investment Securities - Schedul
Investment Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | $ 47,560 | $ 56,952 |
Available for sale, gross unrealized gains | 228 | 437 |
Available for sale, gross unrealized losses | 440 | 268 |
Investment securities available-for-sale | 47,348 | 57,121 |
Held to maturity, amortized cost | 39,594 | 40,458 |
Held to maturity, gross unrealized gains | 175 | 186 |
Held to maturity, gross unrealized losses | 964 | 389 |
Investment securities held-to-maturity | 38,805 | 40,255 |
US Treasury and federal agencies, direct obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 11 | 222 |
Available for sale, gross unrealized gains | 0 | 2 |
Available for sale, gross unrealized losses | 0 | 1 |
Investment securities available-for-sale | 11 | 223 |
Held to maturity, amortized cost | 15,992 | 17,028 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | 292 | 143 |
Investment securities held-to-maturity | 15,700 | 16,885 |
US Treasury and federal agencies, mortgage-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 16,158 | 10,975 |
Available for sale, gross unrealized gains | 22 | 26 |
Available for sale, gross unrealized losses | 287 | 129 |
Investment securities available-for-sale | 15,893 | 10,872 |
Held to maturity, amortized cost | 17,443 | 16,651 |
Held to maturity, gross unrealized gains | 1 | 22 |
Held to maturity, gross unrealized losses | 652 | 225 |
Investment securities held-to-maturity | 16,792 | 16,448 |
Total U.S. Treasury and federal agencies | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 16,169 | 11,197 |
Available for sale, gross unrealized gains | 22 | 28 |
Available for sale, gross unrealized losses | 287 | 130 |
Investment securities available-for-sale | 15,904 | 11,095 |
Held to maturity, amortized cost | 33,435 | 33,679 |
Held to maturity, gross unrealized gains | 1 | 22 |
Held to maturity, gross unrealized losses | 944 | 368 |
Investment securities held-to-maturity | 32,492 | 33,333 |
Asset-backed securities, student loans | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,546 | 3,325 |
Available for sale, gross unrealized gains | 22 | 37 |
Available for sale, gross unrealized losses | 1 | 4 |
Investment securities available-for-sale | 1,567 | 3,358 |
Held to maturity, amortized cost | 2,892 | 3,047 |
Held to maturity, gross unrealized gains | 44 | 32 |
Held to maturity, gross unrealized losses | 8 | 9 |
Investment securities held-to-maturity | 2,928 | 3,070 |
Asset-backed securities, credit cards | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 639 | 1,565 |
Available for sale, gross unrealized gains | 1 | 2 |
Available for sale, gross unrealized losses | 23 | 25 |
Investment securities available-for-sale | 617 | 1,542 |
Held to maturity, amortized cost | 710 | 798 |
Held to maturity, gross unrealized gains | 1 | 2 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 711 | 800 |
Asset-backed securities, other | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 848 | 1,440 |
Available for sale, gross unrealized gains | 4 | 7 |
Available for sale, gross unrealized losses | 1 | 0 |
Investment securities available-for-sale | 851 | 1,447 |
Held to maturity, amortized cost | 1 | 1 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 1 | 1 |
Total asset-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 3,033 | 6,330 |
Available for sale, gross unrealized gains | 27 | 46 |
Available for sale, gross unrealized losses | 25 | 29 |
Investment securities available-for-sale | 3,035 | 6,347 |
Held to maturity, amortized cost | 3,603 | 3,846 |
Held to maturity, gross unrealized gains | 45 | 34 |
Held to maturity, gross unrealized losses | 8 | 9 |
Investment securities held-to-maturity | 3,640 | 3,871 |
Non-U.S. debt securities, mortgage-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 2,609 | 6,664 |
Available for sale, gross unrealized gains | 8 | 36 |
Available for sale, gross unrealized losses | 2 | 5 |
Investment securities available-for-sale | 2,615 | 6,695 |
Held to maturity, amortized cost | 727 | 939 |
Held to maturity, gross unrealized gains | 82 | 82 |
Held to maturity, gross unrealized losses | 5 | 6 |
Investment securities held-to-maturity | 804 | 1,015 |
Non-U.S. debt securities, asset-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,655 | 2,942 |
Available for sale, gross unrealized gains | 2 | 5 |
Available for sale, gross unrealized losses | 0 | 0 |
Investment securities available-for-sale | 1,657 | 2,947 |
Held to maturity, amortized cost | 231 | 263 |
Held to maturity, gross unrealized gains | 0 | 1 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 231 | 264 |
Non-U.S. debt securities, government securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 13,089 | 10,754 |
Available for sale, gross unrealized gains | 31 | 16 |
Available for sale, gross unrealized losses | 48 | 49 |
Investment securities available-for-sale | 13,072 | 10,721 |
Held to maturity, amortized cost | 404 | 474 |
Held to maturity, gross unrealized gains | 2 | 2 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 406 | 476 |
Non-U.S. debt securities, other | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 4,449 | 6,076 |
Available for sale, gross unrealized gains | 19 | 38 |
Available for sale, gross unrealized losses | 16 | 6 |
Investment securities available-for-sale | 4,452 | 6,108 |
Held to maturity, amortized cost | 47 | 48 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 47 | 48 |
Total non-U.S. debt securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 21,802 | 26,436 |
Available for sale, gross unrealized gains | 60 | 95 |
Available for sale, gross unrealized losses | 66 | 60 |
Investment securities available-for-sale | 21,796 | 26,471 |
Held to maturity, amortized cost | 1,409 | 1,724 |
Held to maturity, gross unrealized gains | 84 | 85 |
Held to maturity, gross unrealized losses | 5 | 6 |
Investment securities held-to-maturity | 1,488 | 1,803 |
State and political subdivisions | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 4,127 | 8,929 |
Available for sale, gross unrealized gains | 114 | 245 |
Available for sale, gross unrealized losses | 13 | 23 |
Investment securities available-for-sale | 4,228 | 9,151 |
Collateralized mortgage obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 325 | 1,060 |
Available for sale, gross unrealized gains | 0 | 3 |
Available for sale, gross unrealized losses | 6 | 9 |
Investment securities available-for-sale | 319 | 1,054 |
Held to maturity, amortized cost | 1,147 | 1,209 |
Held to maturity, gross unrealized gains | 45 | 45 |
Held to maturity, gross unrealized losses | 7 | 6 |
Investment securities held-to-maturity | 1,185 | 1,248 |
Other U.S. debt securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 2,104 | 2,563 |
Available for sale, gross unrealized gains | 5 | 12 |
Available for sale, gross unrealized losses | 43 | 15 |
Investment securities available-for-sale | 2,066 | 2,560 |
U.S. equity securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 0 | 40 |
Available for sale, gross unrealized gains | 0 | 8 |
Available for sale, gross unrealized losses | 0 | 2 |
Investment securities available-for-sale | 0 | 46 |
U.S. money-market mutual funds | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 0 | 397 |
Available for sale, gross unrealized gains | 0 | 0 |
Available for sale, gross unrealized losses | 0 | 0 |
Investment securities available-for-sale | $ 0 | 397 |
Federal family education loan program | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Federal government credit support guarantee, percentage minimum | 97.00% | |
Non-US debt securities, covered bonds | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Investment securities available-for-sale | $ 1,959 | 3,537 |
Non-U.S. debt securities, other | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Investment securities available-for-sale | 1,735 | 1,885 |
US States and Political Subdivisions Debt Securities - Trusts | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Investment securities available-for-sale | $ 1,207 | $ 1,247 |
Investment Securities - Sched57
Investment Securities - Schedule of Gross Pre-Tax Unrealized Losses on Investment Securities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | $ 19,305 | $ 18,094 |
Available for sale, gross unrealized losses less than 12 months | 273 | 131 |
Available for sale, fair value 12 months or longer | 3,757 | 6,391 |
Available for sale, gross unrealized losses 12 months or longer | 167 | 137 |
Available for sale, fair value total | 23,062 | 24,485 |
Available for sale, gross unrealized losses total | 440 | 268 |
Held to maturity, fair value less than 12 months | 23,812 | 21,664 |
Held-to-maturity, gross, less than 12 months | 568 | 150 |
Held to maturity, fair value 12 months or longer | 9,708 | 9,373 |
Held to maturity, gross unrealized losses 12 months or longer | 396 | 239 |
Held to maturity, fair value total | 33,520 | 31,037 |
Held to maturity, gross unrealized losses total | 964 | 389 |
US Treasury and federal agencies, direct obligations | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 0 | |
Available for sale, gross unrealized losses less than 12 months | 0 | |
Available for sale, fair value 12 months or longer | 67 | |
Available for sale, gross unrealized losses 12 months or longer | 1 | |
Available for sale, fair value total | 67 | |
Available for sale, gross unrealized losses total | 1 | |
Held to maturity, fair value less than 12 months | 12,528 | 14,439 |
Held-to-maturity, gross, less than 12 months | 246 | 109 |
Held to maturity, fair value 12 months or longer | 3,172 | 2,447 |
Held to maturity, gross unrealized losses 12 months or longer | 46 | 34 |
Held to maturity, fair value total | 15,700 | 16,886 |
Held to maturity, gross unrealized losses total | 292 | 143 |
US Treasury and federal agencies, mortgage-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 7,776 | 5,161 |
Available for sale, gross unrealized losses less than 12 months | 136 | 31 |
Available for sale, fair value 12 months or longer | 3,030 | 3,341 |
Available for sale, gross unrealized losses 12 months or longer | 151 | 98 |
Available for sale, fair value total | 10,806 | 8,502 |
Available for sale, gross unrealized losses total | 287 | 129 |
Held to maturity, fair value less than 12 months | 11,090 | 6,785 |
Held-to-maturity, gross, less than 12 months | 320 | 38 |
Held to maturity, fair value 12 months or longer | 5,606 | 5,988 |
Held to maturity, gross unrealized losses 12 months or longer | 332 | 187 |
Held to maturity, fair value total | 16,696 | 12,773 |
Held to maturity, gross unrealized losses total | 652 | 225 |
Total U.S. Treasury and federal agencies | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 7,776 | 5,161 |
Available for sale, gross unrealized losses less than 12 months | 136 | 31 |
Available for sale, fair value 12 months or longer | 3,030 | 3,408 |
Available for sale, gross unrealized losses 12 months or longer | 151 | 99 |
Available for sale, fair value total | 10,806 | 8,569 |
Available for sale, gross unrealized losses total | 287 | 130 |
Held to maturity, fair value less than 12 months | 23,618 | 21,224 |
Held-to-maturity, gross, less than 12 months | 566 | 147 |
Held to maturity, fair value 12 months or longer | 8,778 | 8,435 |
Held to maturity, gross unrealized losses 12 months or longer | 378 | 221 |
Held to maturity, fair value total | 32,396 | 29,659 |
Held to maturity, gross unrealized losses total | 944 | 368 |
Asset-backed securities, student loans | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 309 | 0 |
Available for sale, gross unrealized losses less than 12 months | 1 | 0 |
Available for sale, fair value 12 months or longer | 192 | 769 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 4 |
Available for sale, fair value total | 501 | 769 |
Available for sale, gross unrealized losses total | 1 | 4 |
Held to maturity, fair value less than 12 months | 99 | 440 |
Held-to-maturity, gross, less than 12 months | 1 | 3 |
Held to maturity, fair value 12 months or longer | 559 | 423 |
Held to maturity, gross unrealized losses 12 months or longer | 7 | 6 |
Held to maturity, fair value total | 658 | 863 |
Held to maturity, gross unrealized losses total | 8 | 9 |
Asset-backed securities, credit cards | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 491 | 1,289 |
Available for sale, gross unrealized losses less than 12 months | 23 | 25 |
Available for sale, fair value 12 months or longer | 0 | 0 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 0 |
Available for sale, fair value total | 491 | 1,289 |
Available for sale, gross unrealized losses total | 23 | 25 |
Asset-backed securities, other | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 326 | |
Available for sale, gross unrealized losses less than 12 months | 1 | |
Available for sale, fair value 12 months or longer | 0 | |
Available for sale, gross unrealized losses 12 months or longer | 0 | |
Available for sale, fair value total | 326 | |
Available for sale, gross unrealized losses total | 1 | |
Asset-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 1,126 | 1,289 |
Available for sale, gross unrealized losses less than 12 months | 25 | 25 |
Available for sale, fair value 12 months or longer | 192 | 769 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 4 |
Available for sale, fair value total | 1,318 | 2,058 |
Available for sale, gross unrealized losses total | 25 | 29 |
Held to maturity, fair value less than 12 months | 99 | 440 |
Held-to-maturity, gross, less than 12 months | 1 | 3 |
Held to maturity, fair value 12 months or longer | 559 | 423 |
Held to maturity, gross unrealized losses 12 months or longer | 7 | 6 |
Held to maturity, fair value total | 658 | 863 |
Held to maturity, gross unrealized losses total | 8 | 9 |
Non-U.S. debt securities, mortgage-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 756 | 1,059 |
Available for sale, gross unrealized losses less than 12 months | 2 | 4 |
Available for sale, fair value 12 months or longer | 63 | 469 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 1 |
Available for sale, fair value total | 819 | 1,528 |
Available for sale, gross unrealized losses total | 2 | 5 |
Held to maturity, fair value less than 12 months | 93 | 0 |
Held-to-maturity, gross, less than 12 months | 1 | 0 |
Held to maturity, fair value 12 months or longer | 133 | 239 |
Held to maturity, gross unrealized losses 12 months or longer | 4 | 6 |
Held to maturity, fair value total | 226 | 239 |
Held to maturity, gross unrealized losses total | 5 | 6 |
Non-U.S. debt securities, government securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 6,216 | 7,629 |
Available for sale, gross unrealized losses less than 12 months | 48 | 48 |
Available for sale, fair value 12 months or longer | 0 | 68 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 1 |
Available for sale, fair value total | 6,216 | 7,697 |
Available for sale, gross unrealized losses total | 48 | 49 |
Non-U.S. debt securities, other | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 1,254 | 816 |
Available for sale, gross unrealized losses less than 12 months | 15 | 4 |
Available for sale, fair value 12 months or longer | 56 | 289 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 2 |
Available for sale, fair value total | 1,310 | 1,105 |
Available for sale, gross unrealized losses total | 16 | 6 |
Total non-U.S. debt securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 8,226 | 9,504 |
Available for sale, gross unrealized losses less than 12 months | 65 | 56 |
Available for sale, fair value 12 months or longer | 119 | 826 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 4 |
Available for sale, fair value total | 8,345 | 10,330 |
Available for sale, gross unrealized losses total | 66 | 60 |
Held to maturity, fair value less than 12 months | 93 | 0 |
Held-to-maturity, gross, less than 12 months | 1 | 0 |
Held to maturity, fair value 12 months or longer | 133 | 239 |
Held to maturity, gross unrealized losses 12 months or longer | 4 | 6 |
Held to maturity, fair value total | 226 | 239 |
Held to maturity, gross unrealized losses total | 5 | 6 |
State and political subdivisions | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 563 | 734 |
Available for sale, gross unrealized losses less than 12 months | 7 | 6 |
Available for sale, fair value 12 months or longer | 233 | 901 |
Available for sale, gross unrealized losses 12 months or longer | 6 | 17 |
Available for sale, fair value total | 796 | 1,635 |
Available for sale, gross unrealized losses total | 13 | 23 |
Collateralized mortgage obligations | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 232 | 399 |
Available for sale, gross unrealized losses less than 12 months | 4 | 5 |
Available for sale, fair value 12 months or longer | 70 | 136 |
Available for sale, gross unrealized losses 12 months or longer | 2 | 4 |
Available for sale, fair value total | 302 | 535 |
Available for sale, gross unrealized losses total | 6 | 9 |
Held to maturity, fair value less than 12 months | 2 | 0 |
Held-to-maturity, gross, less than 12 months | 0 | 0 |
Held to maturity, fair value 12 months or longer | 238 | 276 |
Held to maturity, gross unrealized losses 12 months or longer | 7 | 6 |
Held to maturity, fair value total | 240 | 276 |
Held to maturity, gross unrealized losses total | 7 | 6 |
Other U.S. debt securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 1,382 | 1,007 |
Available for sale, gross unrealized losses less than 12 months | 36 | 8 |
Available for sale, fair value 12 months or longer | 113 | 345 |
Available for sale, gross unrealized losses 12 months or longer | 7 | 7 |
Available for sale, fair value total | 1,495 | 1,352 |
Available for sale, gross unrealized losses total | $ 43 | 15 |
U.S. equity securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 0 | |
Available for sale, gross unrealized losses less than 12 months | 0 | |
Available for sale, fair value 12 months or longer | 6 | |
Available for sale, gross unrealized losses 12 months or longer | 2 | |
Available for sale, fair value total | 6 | |
Available for sale, gross unrealized losses total | $ 2 |
Investment Securities - Sched58
Investment Securities - Schedule of Contractual Maturities of Debt Securities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | $ 4,643 | |
Available for sale, 1 to 5 Years | 14,067 | |
Available for sale, 6 to 10 Years | 13,581 | |
Available for sale, over 10 Years | 15,057 | |
Available-for-sale, fair value | 47,348 | |
Held to maturity, under 1 Year | 3,853 | |
Held to maturity, 1 to 5 Years | 14,629 | |
Held to maturity, 6 to 10 Years | 1,776 | |
Held to maturity, over 10 Years | 19,336 | |
Held to maturity, amortized cost | 39,594 | $ 40,458 |
US Treasury and federal agencies, direct obligations | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 11 | |
Available for sale, 1 to 5 Years | 0 | |
Available for sale, 6 to 10 Years | 0 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | 11 | |
Held to maturity, under 1 Year | 3,205 | |
Held to maturity, 1 to 5 Years | 12,725 | |
Held to maturity, 6 to 10 Years | 13 | |
Held to maturity, over 10 Years | 49 | |
Held to maturity, amortized cost | 15,992 | 17,028 |
US Treasury and federal agencies, mortgage-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 105 | |
Available for sale, 1 to 5 Years | 621 | |
Available for sale, 6 to 10 Years | 2,708 | |
Available for sale, over 10 Years | 12,459 | |
Available-for-sale, fair value | 15,893 | |
Held to maturity, under 1 Year | 10 | |
Held to maturity, 1 to 5 Years | 185 | |
Held to maturity, 6 to 10 Years | 1,467 | |
Held to maturity, over 10 Years | 15,781 | |
Held to maturity, amortized cost | 17,443 | 16,651 |
Total U.S. Treasury and federal agencies | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 116 | |
Available for sale, 1 to 5 Years | 621 | |
Available for sale, 6 to 10 Years | 2,708 | |
Available for sale, over 10 Years | 12,459 | |
Available-for-sale, fair value | 15,904 | |
Held to maturity, under 1 Year | 3,215 | |
Held to maturity, 1 to 5 Years | 12,910 | |
Held to maturity, 6 to 10 Years | 1,480 | |
Held to maturity, over 10 Years | 15,830 | |
Held to maturity, amortized cost | 33,435 | 33,679 |
Asset-backed securities, student loans | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 56 | |
Available for sale, 1 to 5 Years | 366 | |
Available for sale, 6 to 10 Years | 457 | |
Available for sale, over 10 Years | 688 | |
Available-for-sale, fair value | 1,567 | |
Held to maturity, under 1 Year | 32 | |
Held to maturity, 1 to 5 Years | 276 | |
Held to maturity, 6 to 10 Years | 226 | |
Held to maturity, over 10 Years | 2,358 | |
Held to maturity, amortized cost | 2,892 | 3,047 |
Asset-backed securities, credit cards | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 0 | |
Available for sale, 1 to 5 Years | 491 | |
Available for sale, 6 to 10 Years | 126 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | 617 | |
Held to maturity, under 1 Year | 173 | |
Held to maturity, 1 to 5 Years | 537 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 710 | 798 |
Asset-backed securities, other | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 100 | |
Available for sale, 1 to 5 Years | 589 | |
Available for sale, 6 to 10 Years | 142 | |
Available for sale, over 10 Years | 20 | |
Available-for-sale, fair value | 851 | |
Held to maturity, under 1 Year | 0 | |
Held to maturity, 1 to 5 Years | 0 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 1 | |
Held to maturity, amortized cost | 1 | 1 |
Total asset-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 156 | |
Available for sale, 1 to 5 Years | 1,446 | |
Available for sale, 6 to 10 Years | 725 | |
Available for sale, over 10 Years | 708 | |
Available-for-sale, fair value | 3,035 | |
Held to maturity, under 1 Year | 205 | |
Held to maturity, 1 to 5 Years | 813 | |
Held to maturity, 6 to 10 Years | 226 | |
Held to maturity, over 10 Years | 2,359 | |
Held to maturity, amortized cost | 3,603 | 3,846 |
Non-U.S. debt securities, mortgage-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 223 | |
Available for sale, 1 to 5 Years | 1,807 | |
Available for sale, 6 to 10 Years | 195 | |
Available for sale, over 10 Years | 390 | |
Available-for-sale, fair value | 2,615 | |
Held to maturity, under 1 Year | 94 | |
Held to maturity, 1 to 5 Years | 140 | |
Held to maturity, 6 to 10 Years | 21 | |
Held to maturity, over 10 Years | 472 | |
Held to maturity, amortized cost | 727 | 939 |
Non-U.S. debt securities, asset-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 155 | |
Available for sale, 1 to 5 Years | 712 | |
Available for sale, 6 to 10 Years | 650 | |
Available for sale, over 10 Years | 140 | |
Available-for-sale, fair value | 1,657 | |
Held to maturity, under 1 Year | 0 | |
Held to maturity, 1 to 5 Years | 231 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 231 | 263 |
Non-U.S. debt securities, government securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 2,279 | |
Available for sale, 1 to 5 Years | 4,422 | |
Available for sale, 6 to 10 Years | 6,103 | |
Available for sale, over 10 Years | 268 | |
Available-for-sale, fair value | 13,072 | |
Held to maturity, under 1 Year | 287 | |
Held to maturity, 1 to 5 Years | 117 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 404 | 474 |
Non-U.S. debt securities, other | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 1,232 | |
Available for sale, 1 to 5 Years | 2,478 | |
Available for sale, 6 to 10 Years | 705 | |
Available for sale, over 10 Years | 37 | |
Available-for-sale, fair value | 4,452 | |
Held to maturity, under 1 Year | 47 | |
Held to maturity, 1 to 5 Years | 0 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 47 | 48 |
Total non-U.S. debt securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 3,889 | |
Available for sale, 1 to 5 Years | 9,419 | |
Available for sale, 6 to 10 Years | 7,653 | |
Available for sale, over 10 Years | 835 | |
Available-for-sale, fair value | 21,796 | |
Held to maturity, under 1 Year | 428 | |
Held to maturity, 1 to 5 Years | 488 | |
Held to maturity, 6 to 10 Years | 21 | |
Held to maturity, over 10 Years | 472 | |
Held to maturity, amortized cost | 1,409 | 1,724 |
State and political subdivisions | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 406 | |
Available for sale, 1 to 5 Years | 1,284 | |
Available for sale, 6 to 10 Years | 1,786 | |
Available for sale, over 10 Years | 752 | |
Available-for-sale, fair value | 4,228 | |
Collateralized mortgage obligations | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 0 | |
Available for sale, 1 to 5 Years | 16 | |
Available for sale, 6 to 10 Years | 0 | |
Available for sale, over 10 Years | 303 | |
Available-for-sale, fair value | 319 | |
Held to maturity, under 1 Year | 5 | |
Held to maturity, 1 to 5 Years | 418 | |
Held to maturity, 6 to 10 Years | 49 | |
Held to maturity, over 10 Years | 675 | |
Held to maturity, amortized cost | 1,147 | $ 1,209 |
Other U.S. debt securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 76 | |
Available for sale, 1 to 5 Years | 1,281 | |
Available for sale, 6 to 10 Years | 709 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | $ 2,066 |
Investment Securities - Sched59
Investment Securities - Schedule of Credit-Related Loss Activity Recognized In Earnings (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance, beginning of period | $ 66 | |
Losses for which OTTI was previously recognized | $ 1 | 0 |
Previously recognized losses related to securities sold or matured | 0 | (2) |
Balance, end of period | $ 65 | $ 64 |
Loans and Leases - Narrative (D
Loans and Leases - Narrative (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases pledged as collateral | $ | $ 5,200 | $ 1,900 |
Number of impaired loans and leases | 0 | |
Allowance for loan and lease losses | $ | $ 55 | $ 54 |
Loans modified in troubled debt restructurings | 0 | 0 |
Number of loans on non-accrual status | 0 | |
Loans more than 90 days past due | 0 | |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of loans on non-accrual status | 0 |
Loans and Leases - Net Loans (D
Loans and Leases - Net Loans (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 24,124 | $ 23,294 |
Allowance for loan and lease losses | (55) | (54) |
Loans and leases, net of allowance | 24,069 | 23,240 |
Domestic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans to investment funds | 13,359 | 13,618 |
Senior secured bank loans | 3,053 | 2,923 |
Loans to municipalities | 1,773 | 2,105 |
Other | 42 | 50 |
Commercial real estate | 285 | 98 |
Lease financing | 78 | 267 |
Total loans and leases | 18,590 | 19,061 |
Non-U.S. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans to investment funds | 4,535 | 3,213 |
Senior secured bank loans | 646 | 624 |
Lease financing | 353 | 396 |
Total loans and leases | $ 5,534 | $ 4,233 |
Loans and Leases - Recorded Inv
Loans and Leases - Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 24,124,000 | $ 23,294,000 |
Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 23,409,000 | 22,533,000 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 285,000 | 98,000 |
Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 430,000 | 663,000 |
Investment grade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 18,897,000 | 18,627,000 |
Investment grade | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 18,182,000 | 17,866,000 |
Investment grade | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 285,000 | 98,000 |
Investment grade | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 430,000 | 663,000 |
Speculative | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 5,227,000 | 4,638,000 |
Speculative | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 5,227,000 | 4,638,000 |
Speculative | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 0 |
Speculative | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 0 | 0 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 29,000 | |
Special Mention | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 29,000 | |
Special Mention | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | |
Special Mention | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 0 |
Loans and Leases - Schedule of
Loans and Leases - Schedule of Allowance for Loan Losses (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 24,124 | $ 23,294 |
Loans and leases, allowance for losses | 55 | 54 |
Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 23,409 | 22,533 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 285 | 98 |
Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 430 | $ 663 |
Loans and Leases - Schedule o64
Loans and Leases - Schedule of Activity In The Allowance For Loan Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 54 | $ 51 | $ 54 | $ 53 |
Provision for loan and lease losses | 2 | 3 | 2 | 1 |
Charge-offs | (1) | 0 | (1) | 0 |
Ending balance | $ 55 | $ 54 | $ 55 | $ 54 |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets - Changes In The Carrying Amount Of Goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 6,022 | $ 5,814 |
Acquisitions | 17 | |
Divestitures and other reductions | (9) | |
Foreign currency translation | (49) | 200 |
Ending balance | 5,973 | 6,022 |
Investment Servicing | ||
Goodwill [Roll Forward] | ||
Beginning balance | 5,752 | 5,550 |
Acquisitions | 17 | |
Divestitures and other reductions | (9) | |
Foreign currency translation | (47) | 194 |
Ending balance | 5,705 | 5,752 |
Investment Management | ||
Goodwill [Roll Forward] | ||
Beginning balance | 270 | 264 |
Acquisitions | 0 | |
Divestitures and other reductions | 0 | |
Foreign currency translation | (2) | 6 |
Ending balance | $ 268 | $ 270 |
Goodwill and Other Intangible66
Goodwill and Other Intangible Assets - Changes In The Carrying Amount Of Other Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Finite-lived Intangible Assets [Roll Forward] | |||||
Beginning balance | $ 1,613 | $ 1,750 | $ 1,750 | ||
Acquisitions | 16 | ||||
Divestitures | (11) | ||||
Amortization | $ (48) | $ (54) | (98) | (106) | (214) |
Foreign currency translation and other, net | (15) | 72 | |||
Ending balance | 1,500 | 1,500 | 1,613 | ||
Investment Servicing | |||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Beginning balance | 1,432 | 1,539 | 1,539 | ||
Acquisitions | 16 | ||||
Divestitures | (11) | ||||
Amortization | (83) | (183) | |||
Foreign currency translation and other, net | (15) | 71 | |||
Ending balance | 1,334 | 1,334 | 1,432 | ||
Investment Management | |||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Beginning balance | 181 | $ 211 | 211 | ||
Acquisitions | 0 | ||||
Divestitures | 0 | ||||
Amortization | (15) | (31) | |||
Foreign currency translation and other, net | 0 | 1 | |||
Ending balance | $ 166 | $ 166 | $ 181 |
Goodwill and Other Intangible67
Goodwill and Other Intangible Assets - Gross Carrying Amount, Accumulated Amortization And Net Carrying Amount Of Other Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 3,450 | $ 3,497 | |
Accumulated Amortization | (1,950) | (1,884) | |
Net Carrying Amount | 1,500 | 1,613 | $ 1,750 |
Client relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 2,633 | 2,669 | |
Accumulated Amortization | (1,521) | (1,470) | |
Net Carrying Amount | 1,112 | 1,199 | |
Core deposits | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 681 | 686 | |
Accumulated Amortization | (335) | (320) | |
Net Carrying Amount | 346 | 366 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 136 | 142 | |
Accumulated Amortization | (94) | (94) | |
Net Carrying Amount | $ 42 | $ 48 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Other Assets [Abstract] | ||
Securities Financing pledged assets and collateral received | $ 22,789 | $ 19,404 |
Derivative instruments, net | 6,151 | 4,013 |
Bank-owned life insurance | 3,285 | 3,242 |
Investments in joint ventures and other unconsolidated entities(2) | 2,791 | 2,259 |
Collateral, net | 2,263 | 473 |
Receivable for securities settlement | 813 | 188 |
Prepaid expenses | 425 | 364 |
Accounts receivable | 339 | 348 |
Deposits with clearing organizations | 131 | 120 |
Deferred tax assets, net of valuation allowance | 109 | 113 |
Income taxes receivable | 44 | 97 |
Other | 414 | 397 |
Total | $ 39,554 | $ 31,018 |
Derivative Financial Instrume69
Derivative Financial Instruments - Narrative (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018USD ($)security | Dec. 31, 2017USD ($) | |
Derivative [Line Items] | ||
Cash collateral received for derivative instruments | $ 3,230,000,000 | $ 2,550,000,000 |
Cash collateral provided for derivative instruments | 5,060,000,000 | 869,000,000 |
Fair value of derivative liabilities | $ 17,934,000,000 | $ 11,852,000,000 |
Weighted average life of trusts | 3 years 7 months 9 days | 4 years 7 months |
LIBOR Indexed Floating Rate Loans | ||
Derivative [Line Items] | ||
Term of debt instrument | 4 years | |
Credit swap agreements | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 2,270,000,000 | |
Fair value of collateral posted | 85,000,000 | |
Maximum additional amount of payments related to termination events | $ 2,190,000,000 | |
Interest rate swap | Fair Value Hedges | Senior notes | ||
Derivative [Line Items] | ||
Number of securities | security | 8 | |
Interest rate swap | Fair Value Hedges | Subordinated note | ||
Derivative [Line Items] | ||
Number of securities | security | 1 |
Derivative Financial Instrume70
Derivative Financial Instruments - Schedule of Interest Rate Derivatives (Details) - Interest rate swap - Fair Value Hedges | Jun. 30, 2018 |
Senior notes | 2.55% notes due 2020 | |
Derivative [Line Items] | |
Fixed interest rate | 2.55% |
Senior notes | 4.38% note due 2021 | |
Derivative [Line Items] | |
Fixed interest rate | 4.38% |
Senior notes | 1.95% Notes Due 2021 | |
Derivative [Line Items] | |
Fixed interest rate | 1.95% |
Senior notes | 2.65% Notes Due 2022 | |
Derivative [Line Items] | |
Fixed interest rate | 2.65% |
Senior notes | 3.7% notes due in 2023 | |
Derivative [Line Items] | |
Fixed interest rate | 3.70% |
Senior notes | 3.3% notes due 2024 | |
Derivative [Line Items] | |
Fixed interest rate | 3.30% |
Senior notes | 3.55% notes due 2025 | |
Derivative [Line Items] | |
Fixed interest rate | 3.55% |
Senior notes | 2.65% notes due 2026 | |
Derivative [Line Items] | |
Fixed interest rate | 2.65% |
Subordinated note | 3.10% subordinated note due 2023 | |
Derivative [Line Items] | |
Fixed interest rate | 3.10% |
Derivative Financial Instrume71
Derivative Financial Instruments - Schedule of Outstanding Hedges: (Notional Amount) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount of derivatives | $ 11,316 | $ 11,047 | |
Derivatives not designated as hedging instruments | Interest-rate contracts(6) | Futures | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount of derivatives | 5,906 | 2,392 | |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Futures | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount of derivatives | 10 | 50 | |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Forward, swap and spot | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount of derivatives | 2,224,255 | 1,679,976 | |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Options purchased | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount of derivatives | 752 | 350 | |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Options written | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount of derivatives | 419 | 302 | |
Derivatives not designated as hedging instruments | Commodity and Equity Contracts | Commodity | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount of derivatives | 53 | 16 | |
Derivatives not designated as hedging instruments | Commodity and Equity Contracts | Equity | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount of derivatives | 68 | 50 | |
Derivatives not designated as hedging instruments | Other contracts | Stable value contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount of derivatives | 26,252 | 26,653 | |
Derivatives not designated as hedging instruments | Other contracts | Deferred value awards | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount of derivatives | 558 | 473 | |
Additional compensation and employee benefits expense due to accelerated vesting | $ 249 | ||
Derivatives designated as hedging instruments | Interest-rate contracts(6) | Swap agreements | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount of derivatives | 11,316 | 11,047 | |
Derivatives designated as hedging instruments | Foreign exchange contracts | Forward and swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount of derivatives | $ 3,996 | $ 28,913 |
Derivative Financial Instrume72
Derivative Financial Instruments - Notional Amount of Interest Rate Swap Agreements Designated as Fair Value and Cash Flow Hedges (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||
Total | $ 11,316 | $ 11,047 |
Investment securities available-for-sale | ||
Derivative [Line Items] | ||
Investment securities available-for-sale | 1,223 | 1,254 |
Long-term debt | ||
Derivative [Line Items] | ||
Long-term debt | 8,493 | 8,493 |
Floating-rate loans | ||
Derivative [Line Items] | ||
Long-term debt | 1,600 | 1,300 |
Fair Value Hedges | ||
Derivative [Line Items] | ||
Total | 9,716 | 9,747 |
Increase in carrying value of long-term debt | (301) | (87) |
Fair Value Hedges | Investment securities available-for-sale | ||
Derivative [Line Items] | ||
Investment securities available-for-sale | 1,223 | 1,254 |
Fair Value Hedges | Long-term debt | ||
Derivative [Line Items] | ||
Long-term debt | 8,493 | 8,493 |
Fair Value Hedges | Floating-rate loans | ||
Derivative [Line Items] | ||
Long-term debt | 0 | 0 |
Cash Flow Hedges | ||
Derivative [Line Items] | ||
Total | 1,600 | 1,300 |
Cash Flow Hedges | Investment securities available-for-sale | ||
Derivative [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Cash Flow Hedges | Long-term debt | ||
Derivative [Line Items] | ||
Long-term debt | 0 | 0 |
Cash Flow Hedges | Floating-rate loans | ||
Derivative [Line Items] | ||
Long-term debt | $ 1,600 | $ 1,300 |
Derivative Financial Instrume73
Derivative Financial Instruments - Contractual and Weighted-Average Interest Rates, Which Include the Effects of Hedges Related to Financial Instruments (Details) - Long-term debt | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||||
Contractual rates | 3.52% | 3.34% | 3.61% | 3.37% |
Rate including impact of hedges | 3.66% | 2.61% | 3.51% | 2.58% |
Derivative Financial Instrume74
Derivative Financial Instruments - Schedule of The Fair Values of Derivative Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 17,382 | $ 11,606 |
Fair value of derivative liabilities | 17,934 | 11,852 |
Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 17,380 | 11,597 |
Fair value of derivative liabilities | 17,558 | 11,467 |
Interest-rate contracts(6) | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 8 |
Fair value of derivative liabilities | 106 | 100 |
Derivatives not designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 17,334 | 11,478 |
Derivatives not designated as hedging instruments | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 17,740 | 11,645 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 17,332 | 11,477 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 17,470 | 11,361 |
Derivatives not designated as hedging instruments | Other derivative contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 2 | 1 |
Derivatives not designated as hedging instruments | Other derivative contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 270 | 284 |
Derivatives designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 48 | 128 |
Derivatives designated as hedging instruments | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 194 | 207 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 48 | 120 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 88 | 107 |
Derivatives designated as hedging instruments | Interest-rate contracts(6) | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 8 |
Derivatives designated as hedging instruments | Interest-rate contracts(6) | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 106 | $ 100 |
Derivative Financial Instrume75
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statement of Income (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | $ 150 | $ 140 | $ 254 | $ 245 |
Foreign exchange contracts | Trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 195 | 170 | 379 | 333 |
Foreign exchange contracts | Processing fees and other revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 0 | 0 | (15) | 0 |
Interest-rate contracts(6) | Trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | (2) | 8 | (4) | 9 |
Interest-rate contracts(6) | Processing fees and other revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 0 | (9) | 0 | (2) |
Other derivative contracts | Trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | (1) | 0 | 0 | 0 |
Other derivative contracts | Compensation and employee benefits | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | $ (42) | $ (29) | (106) | $ (95) |
Swap | Foreign exchange contracts | Processing fees and other revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | $ 15 |
Derivative Financial Instrume76
Derivative Financial Instruments - Schedule of Differences Between the Gains (Losses) on the Derivative and The Gains (Losses) on the Hedged Item (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||||
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes | $ (5) | $ (3) | $ (9) | $ (9) |
Derivatives designated as hedging instruments | Fair Value Hedges | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | (668) | 173 | (579) | 1,142 |
Gain (loss) on fair value hedges recognized in earnings | 666 | (170) | 566 | (1,140) |
Derivatives designated as hedging instruments | Fair Value Hedges | Investment securities available-for-sale | Interest-rate contracts(6) | Processing fees and other revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 0 | 3 | 0 | 15 |
Gain (loss) on fair value hedges recognized in earnings | 0 | (2) | 0 | (13) |
Derivatives designated as hedging instruments | Fair Value Hedges | Investment securities available-for-sale | Interest-rate contracts(6) | Net interest revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 10 | 0 | 31 | 0 |
Gain (loss) on fair value hedges recognized in earnings | (9) | 0 | (30) | 0 |
Derivatives designated as hedging instruments | Fair Value Hedges | Investment securities available-for-sale | Foreign exchange contracts | Processing fees and other revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | (30) | 4 | (43) | 2 |
Gain (loss) on fair value hedges recognized in earnings | 30 | (4) | 43 | (2) |
Derivatives designated as hedging instruments | Fair Value Hedges | Deposits | Foreign exchange contracts | Processing fees and other revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | (601) | 102 | (353) | 1,081 |
Gain (loss) on fair value hedges recognized in earnings | 601 | (101) | 353 | (1,081) |
Derivatives designated as hedging instruments | Fair Value Hedges | Long-term debt | Interest-rate contracts(6) | Processing fees and other revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 0 | 64 | 0 | 44 |
Gain (loss) on fair value hedges recognized in earnings | 0 | (63) | 0 | (44) |
Derivatives designated as hedging instruments | Fair Value Hedges | Long-term debt | Interest-rate contracts(6) | Net interest revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | (47) | 0 | (214) | 0 |
Gain (loss) on fair value hedges recognized in earnings | 44 | 0 | 200 | 0 |
Derivatives designated as hedging instruments | Cash Flow Hedges | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative recognized in OCI | 49 | 13 | (67) | (93) |
Derivatives designated as hedging instruments | Cash Flow Hedges | Net interest revenue | ||||
Derivative [Line Items] | ||||
Gain (loss) on hedges reclassified to income | 0 | 0 | 0 | 0 |
Amount of gain (loss) on derivative recognized in income | 7 | 7 | 15 | 13 |
Derivatives designated as hedging instruments | Cash Flow Hedges | Interest-rate contracts(6) | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative recognized in OCI | (8) | (1) | (29) | (1) |
Derivatives designated as hedging instruments | Cash Flow Hedges | Interest-rate contracts(6) | Net interest revenue | ||||
Derivative [Line Items] | ||||
Gain (loss) on hedges reclassified to income | 0 | 0 | 0 | 0 |
Amount of gain (loss) on derivative recognized in income | 0 | 0 | 1 | 0 |
Derivatives designated as hedging instruments | Cash Flow Hedges | Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative recognized in OCI | 57 | 14 | (38) | (92) |
Derivatives designated as hedging instruments | Cash Flow Hedges | Foreign exchange contracts | Net interest revenue | ||||
Derivative [Line Items] | ||||
Gain (loss) on hedges reclassified to income | 0 | 0 | 0 | 0 |
Amount of gain (loss) on derivative recognized in income | 7 | 7 | 14 | 13 |
Derivatives designated as hedging instruments | Investment Hedges | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative recognized in OCI | 71 | (87) | 35 | (101) |
Gain (loss) on hedges reclassified to income | 0 | 0 | 0 | 0 |
Amount of gain (loss) on derivative recognized in income | 0 | 0 | 0 | 0 |
Derivatives designated as hedging instruments | Investment Hedges | Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative recognized in OCI | 71 | (87) | 35 | (101) |
Derivatives designated as hedging instruments | Investment Hedges | Foreign exchange contracts | Gains (Losses) related to investment securities, net | ||||
Derivative [Line Items] | ||||
Gain (loss) on hedges reclassified to income | 0 | 0 | 0 | 0 |
Amount of gain (loss) on derivative recognized in income | $ 0 | $ 0 | $ 0 | $ 0 |
Offsetting Arrangements - Narra
Offsetting Arrangements - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Offsetting [Abstract] | ||
Fair Value of securities received as collateral that can be resold or repledged | $ 9,600 | $ 2,470 |
Fair Value of securities received as collateral that have been resold or repledged | $ 6,680 | $ 15 |
Offsetting Arrangements - Asset
Offsetting Arrangements - Assets With Offsetting Arrangements (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | $ 17,382 | $ 11,606 |
Derivatives, Gross Amounts Offset in Statement of Condition | (11,231) | (7,593) |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 6,151 | 4,013 |
Derivatives, Net Amount | 6,051 | 3,889 |
Derivatives, Cash collateral and securities netting, offset | (1,557) | (2,045) |
Derivatives, Cash collateral and securities netting, Cash and Securities Received | (100) | (124) |
Derivatives, Cash collateral and securities netting, Net | (1,657) | (2,169) |
Resale agreements and securities borrowing, Gross Amounts of Recognized Assets | 73,482 | 70,079 |
Resale agreements and securities borrowing, Gross Amounts Offset in Statement of Condition | (47,108) | (47,434) |
Resale agreements and securities borrowing, Net Amounts of Assets Presented in Statement of Condition | 26,372 | 22,645 |
Resale agreements and securities borrowing, Cash and Securities Received | (26,063) | (22,645) |
Resale agreements and securities borrowing, Net Amount | 310 | 0 |
Total derivatives and other financial instruments, Gross Amounts of Recognized Assets | 90,864 | 81,685 |
Total derivatives and other financial instruments, Gross Amounts Offset in Statement of Condition | (58,339) | (55,027) |
Total derivatives and other financial instruments, Net Amounts of Assets Presented in Statement of Condition | 32,523 | 26,658 |
Total derivatives and other financial instruments, Cash and Securities Received(5) | (26,163) | (22,769) |
Total derivatives and other financial instruments, Net Amount | 6,361 | 3,889 |
Securities purchased under resale agreements | 3,583 | 3,241 |
Cash collateral provided for securities lending | 22,789 | 19,400 |
Securities borrowed subject to master netting arrangements | (19,404) | |
Foreign exchange contracts | ||
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | 17,380 | 11,597 |
Derivatives, Gross Amounts Offset in Statement of Condition | (9,674) | (5,548) |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 7,706 | 6,049 |
Derivatives, Net Amount | 7,706 | 6,049 |
Interest-rate contracts(6) | ||
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | 0 | 8 |
Derivatives, Gross Amounts Offset in Statement of Condition | 0 | 0 |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 0 | 8 |
Derivatives, Net Amount | 0 | 8 |
Other derivative contracts | ||
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | 2 | 1 |
Derivatives, Gross Amounts Offset in Statement of Condition | 0 | 0 |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 2 | 1 |
Derivatives, Net Amount | $ 2 | $ 1 |
Offsetting Arrangements - Liabi
Offsetting Arrangements - Liabilities With Offsetting Arrangements (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | $ 17,934 | $ 11,852 |
Derivatives, Gross amounts offset in statement of condition | (12,608) | (5,970) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 5,326 | 5,882 |
Derivative, Net Amount | 4,996 | 5,432 |
Derivatives, Cash and collateral securities netting, offset | (2,934) | (422) |
Derivatives, Cash and collateral securities netting, Cash and Securities Provided | (330) | (450) |
Derivatives, Cash and collateral securities netting, Net | (3,264) | (872) |
Resale agreements and securities lending, Gross Amounts of Recognized Liabilities(1)(2) | 61,087 | 54,127 |
Resale agreements and securities lending, Gross Amounts Offset in Statement of Condition(3) | (47,108) | (47,434) |
Resale agreements and securities lending, Net Amounts of Liabilities Presented in Statement of Condition | 13,979 | 6,693 |
Resale agreements and securities lending, Cash and Securities Provided | (12,509) | (4,299) |
Resale agreements and securities lending, Net Amount | 1,470 | 2,394 |
Total derivatives and other financial instruments, Gross Amounts of Recognized Liabilities | 79,021 | 65,979 |
Total derivatives and other financial instruments, Gross Amounts Offset in Statement of Condition | (59,716) | (53,404) |
Total derivatives and other financial instruments, Net Amounts of Liabilities Presented in Statement of Condition | 19,305 | 12,575 |
Total derivatives and other financial instruments, Cash and Securities Provided | (12,839) | (4,749) |
Total derivatives and other financial instruments, Net Amount | 6,466 | 7,826 |
Securities sold under repurchase agreements | 3,088 | 2,842 |
Securities lending, fair value, amount not offset against collateral | 3,851 | |
Foreign exchange contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 17,558 | 11,467 |
Derivatives, Gross amounts offset in statement of condition | (9,674) | (5,548) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 7,884 | 5,919 |
Derivative, Net Amount | 7,884 | 5,919 |
Interest-rate contracts(6) | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 106 | 100 |
Derivatives, Gross amounts offset in statement of condition | 0 | 0 |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 106 | 100 |
Derivative, Net Amount | 106 | 100 |
Other derivative contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 270 | 285 |
Derivatives, Gross amounts offset in statement of condition | 0 | 0 |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 270 | 285 |
Derivative, Net Amount | $ 270 | $ 285 |
Offsetting Arrangements - Repo,
Offsetting Arrangements - Repo, Sec Lending Transactions Maturity By Category (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | $ 45,123 | |
Securities lending transactions | 15,964 | |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Gross | 61,087 | |
U.S. Treasury and agency securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 45,123 | |
Securities lending transactions | 115 | |
Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 88 | |
Equity securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 8,761 | |
Other2 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 7,000 | |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 45,123 | $ 43,072 |
Securities lending transactions | 15,799 | 11,055 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Gross | 60,922 | 54,127 |
Overnight and Continuous | U.S. Treasury and agency securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 45,123 | 43,072 |
Securities lending transactions | 115 | 0 |
Overnight and Continuous | Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 88 | 35 |
Overnight and Continuous | Equity securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 8,596 | 11,020 |
Overnight and Continuous | Other(2) | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 7,000 | $ 0 |
Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | |
Securities lending transactions | 165 | |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Gross | 165 | |
Up to 30 Days | U.S. Treasury and agency securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | |
Securities lending transactions | 0 | |
Up to 30 Days | Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 0 | |
Up to 30 Days | Equity securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 165 | |
Up to 30 Days | Other(2) | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | $ 0 |
Commitments and Guarantees - Na
Commitments and Guarantees - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||
Unfunded commitments to extend credit, short term | 72.00% | |
Term of unfunded commitment | 1 year | |
Cash collateral provided for securities lending | $ 22,789 | $ 19,400 |
Accrued expenses and other liabilities | ||
Loss Contingencies [Line Items] | ||
Cash collateral received in connection to securities finance activities | $ 10,891 | $ 3,850 |
Commitments and Guarantees - Co
Commitments and Guarantees - Contractual Amounts of Credit-Related Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded credit facilities | $ 26,654 | $ 26,488 |
Indemnified securities financing | 396,801 | 381,817 |
Stable value protection | 26,252 | 26,653 |
Standby letters of credit | $ 2,955 | $ 3,158 |
Commitments and Guarantees - Sc
Commitments and Guarantees - Schedule Of Repurchase Agreements (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Fair value of indemnified securities financing | $ 396,801 | $ 381,817 |
Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing | 416,084 | 400,828 |
Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements | 59,391 | 61,270 |
Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements | $ 63,016 | $ 65,272 |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||
Estimate of possible loss | $ 14,000,000 | |
Unrecognized tax benefits | 83,000,000 | $ 94,000,000 |
Minimum | ||
Loss Contingencies [Line Items] | ||
Estimate of possible loss | 0 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Estimate of possible loss | 45,000,000 | |
Shareholder Litigation | ||
Loss Contingencies [Line Items] | ||
Litigation Settlement, Amount Awarded to Other Party | 4,900,000 | |
Legal Reserve | Invoicing Matter | ||
Loss Contingencies [Line Items] | ||
Estimate of possible loss | $ 360,000,000 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Investment securities related to state and political subdivisions | $ 1,210 | $ 1,250 |
Variable interest entity, other short-term borrowings | $ 1,060 | $ 1,080 |
Weighted average life of trusts | 3 years 7 months 9 days | 4 years 7 months |
VIE - primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 188 | $ 149 |
Liabilities | 88 | 50 |
Potential maximum loss exposure of unconsolidated funds | 100 | |
VIE - not primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Potential maximum loss exposure of unconsolidated funds | $ 72 | $ 72 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Preferred Shares Outstanding (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Series C Preferred Stock, Depository Share | |
Class of Stock [Line Items] | |
Depositary shares issued (shares) | shares | 20,000,000 |
Liquidation preference per share (USD per share) | $ 25 |
Series C Preferred Stock | |
Class of Stock [Line Items] | |
Ownership Interest Per Depositary Share | 0.025% |
Liquidation preference per share (USD per share) | $ 100,000 |
Proceeds from issuance of preferred stock, net | $ | $ 488 |
Series D Preferred Stock, Depository Share | |
Class of Stock [Line Items] | |
Depositary shares issued (shares) | shares | 30,000,000 |
Liquidation preference per share (USD per share) | $ 25 |
Series D Preferred Stock | |
Class of Stock [Line Items] | |
Ownership Interest Per Depositary Share | 0.025% |
Liquidation preference per share (USD per share) | $ 100,000 |
Proceeds from issuance of preferred stock, net | $ | $ 742 |
Series E Preferred Stock, Depository Share | |
Class of Stock [Line Items] | |
Depositary shares issued (shares) | shares | 30,000,000 |
Liquidation preference per share (USD per share) | $ 25 |
Series E Preferred Stock | |
Class of Stock [Line Items] | |
Ownership Interest Per Depositary Share | 0.025% |
Liquidation preference per share (USD per share) | $ 100,000 |
Proceeds from issuance of preferred stock, net | $ | $ 728 |
Series F Preferred Stock, Depository Share | |
Class of Stock [Line Items] | |
Depositary shares issued (shares) | shares | 750,000 |
Liquidation preference per share (USD per share) | $ 1,000 |
Series F Preferred Stock | |
Class of Stock [Line Items] | |
Ownership Interest Per Depositary Share | 1.00% |
Liquidation preference per share (USD per share) | $ 100,000 |
Proceeds from issuance of preferred stock, net | $ | $ 742 |
Series G Preferred Stock, Depository Share | |
Class of Stock [Line Items] | |
Depositary shares issued (shares) | shares | 20,000,000 |
Liquidation preference per share (USD per share) | $ 25 |
Series G Preferred Stock | |
Class of Stock [Line Items] | |
Ownership Interest Per Depositary Share | 0.025% |
Liquidation preference per share (USD per share) | $ 100,000 |
Proceeds from issuance of preferred stock, net | $ | $ 493 |
Shareholders' Equity - Schedu87
Shareholders' Equity - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Dividends Payable [Line Items] | ||||
Preferred stock cash dividend | $ 36 | $ 36 | $ 91 | $ 91 |
Common Stock Dividends Declared (in USD per share) | $ 0.42 | $ 0.38 | $ 0.84 | $ 0.76 |
Common Stock Dividends | $ 153 | $ 142 | $ 307 | $ 286 |
Series C Preferred Stock | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 1,313 | $ 1,313 | $ 2,626 | $ 2,626 |
Preferred stock cash dividend | $ 7 | $ 7 | $ 13 | $ 13 |
Series C Preferred Stock, Depository Share | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 0.33 | $ 0.33 | $ 0.66 | $ 0.66 |
Series D Preferred Stock | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 1,475 | $ 1,475 | $ 2,950 | $ 2,950 |
Preferred stock cash dividend | $ 11 | $ 11 | $ 22 | $ 22 |
Series D Preferred Stock, Depository Share | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 0.37 | $ 0.37 | $ 0.74 | $ 0.74 |
Series E Preferred Stock | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 1,500 | $ 1,500 | $ 3,000 | $ 3,000 |
Preferred stock cash dividend | $ 11 | $ 11 | $ 22 | $ 22 |
Series E Preferred Stock, Depository Share | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 0.38 | $ 0.38 | $ 0.76 | $ 0.76 |
Series F Preferred Stock | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 0 | $ 0 | $ 2,625 | $ 2,625 |
Preferred stock cash dividend | $ 0 | $ 0 | $ 20 | $ 20 |
Series F Preferred Stock, Depository Share | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 0 | $ 0 | $ 26.25 | $ 26.25 |
Series G Preferred Stock | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 1,338 | $ 1,338 | $ 2,676 | $ 2,676 |
Preferred stock cash dividend | $ 7 | $ 7 | $ 14 | $ 14 |
Series G Preferred Stock, Depository Share | ||||
Dividends Payable [Line Items] | ||||
Preferred dividends declared (USD per share) | $ 0.33 | $ 0.33 | $ 0.66 | $ 0.66 |
Shareholders' Equity - Schedu88
Shareholders' Equity - Schedule of Shares Repurchase Plans (Details) - USD ($) $ / shares in Units, shares in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
2017 Program | ||
Equity, Class of Treasury Stock [Line Items] | ||
Amount of common stock authorized for repurchase | $ 1,400,000,000 | |
Shares Purchased | 3.3 | |
Average Cost per Share (USD per share) | $ 105.31 | |
Total Purchased | $ 350,000,000 | |
2018 Program | ||
Equity, Class of Treasury Stock [Line Items] | ||
Amount of common stock authorized for repurchase | $ 1,200,000,000 |
Shareholders' Equity - Schedu89
Shareholders' Equity - Schedule of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||
Net unrealized gains (losses) on cash flow hedges | $ (113) | $ (56) |
Net unrealized gains (losses) on available-for-sale securities portfolio | (112) | 148 |
Net unrealized gains (losses) related to reclassified available-for-sale securities | 22 | 19 |
Net unrealized gains (losses) on available-for-sale securities | (90) | 167 |
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges | (55) | (64) |
Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries | (30) | (65) |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit | (7) | (6) |
Net unrealized gains (losses) on retirement plans | (156) | (170) |
Foreign currency translation | (1,037) | (815) |
Total | $ (1,488) | $ (1,009) |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 22,317 | $ 21,219 |
Ending balance | 22,571 | 22,068 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (1,009) | (2,040) |
Other comprehensive income (loss) before reclassifications | (496) | 785 |
Amounts reclassified into (out of) earnings | 17 | (15) |
Other comprehensive income (loss) | (479) | 770 |
Ending balance | (1,488) | (1,270) |
Net Unrealized Gains (Losses) on Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (56) | 229 |
Other comprehensive income (loss) before reclassifications | (57) | (247) |
Amounts reclassified into (out of) earnings | 0 | 0 |
Other comprehensive income (loss) | (57) | (247) |
Ending balance | (113) | (18) |
Net Unrealized Gains (Losses) on Available-for-Sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 103 | (286) |
Other comprehensive income (loss) before reclassifications | (254) | 505 |
Amounts reclassified into (out of) earnings | 6 | (24) |
Other comprehensive income (loss) | (248) | 481 |
Ending balance | (145) | 195 |
Net Unrealized Losses on Hedges of Net Investments in Non-U.S. Subsidiaries | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (65) | 95 |
Other comprehensive income (loss) before reclassifications | 35 | (101) |
Amounts reclassified into (out of) earnings | 0 | 0 |
Other comprehensive income (loss) | 35 | (101) |
Ending balance | (30) | (6) |
Other-Than-Temporary Impairment on Held-to-Maturity Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (6) | (9) |
Other comprehensive income (loss) before reclassifications | 1 | 2 |
Amounts reclassified into (out of) earnings | (2) | 0 |
Other comprehensive income (loss) | (1) | 2 |
Ending balance | (7) | (7) |
Net Unrealized Losses on Retirement Plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (170) | (194) |
Other comprehensive income (loss) before reclassifications | 1 | (1) |
Amounts reclassified into (out of) earnings | 13 | 9 |
Other comprehensive income (loss) | 14 | 8 |
Ending balance | (156) | (186) |
Foreign Currency Translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (815) | (1,875) |
Other comprehensive income (loss) before reclassifications | (222) | 627 |
Amounts reclassified into (out of) earnings | 0 | 0 |
Other comprehensive income (loss) | (222) | 627 |
Ending balance | $ (1,037) | $ (1,248) |
Shareholders' Equity - Adjustme
Shareholders' Equity - Adjustments to Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Class of Stock [Line Items] | ||||
Sales of non-U.S. entities, net of related taxes | $ (338) | $ 435 | $ (187) | $ 526 |
Total reclassifications (out of) into AOCI | 32 | 3 | 17 | (15) |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Available-for-Sale Securities | ||||
Class of Stock [Line Items] | ||||
Net realized gains (losses) from sales of available-for-sale securities, net of related taxes | 7 | 0 | 6 | (24) |
Net realized gains from sales of available-for-sale securities, taxes | (2) | 0 | (3) | 16 |
Reclassification out of Accumulated Other Comprehensive Income | Other-Than-Temporary Impairment on Securities | ||||
Class of Stock [Line Items] | ||||
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit | 1 | 0 | (2) | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Actuarial Losses | ||||
Class of Stock [Line Items] | ||||
Amortization of actuarial losses, net of related taxes | (26) | (3) | 13 | 9 |
Amortization of actuarial losses, taxes | $ 24 | $ 1 | $ (4) | $ (2) |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Retained earnings | $ 19,856 | $ 18,856 |
Capital ratio: required common equity tier 1 capital | 7.50% | 6.50% |
Capital ratio: required tier 1 capital | 9.00% | 8.00% |
Capital ratio: required total capital | 11.00% | 10.00% |
Capital ratio: required tier 1 leverage | 4.00% | 4.00% |
Basel III Advanced Approaches | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 10,324 | $ 10,302 |
Retained earnings | 19,856 | 18,856 |
Accumulated other comprehensive income (loss) | (1,446) | (972) |
Treasury stock, at cost | (9,317) | (9,029) |
Total | 19,417 | 19,157 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (7,008) | (6,877) |
Other adjustments | (186) | (76) |
Common equity tier 1 capital | 12,223 | 12,204 |
Preferred stock | 3,196 | 3,196 |
Trust preferred capital securities subject to phase-out from tier 1 capital | 0 | 0 |
Other adjustments | 0 | (18) |
Tier 1 capital | 15,419 | 15,382 |
Qualifying subordinated long-term debt | 765 | 980 |
Trust preferred capital securities phased out of tier 1 capital | 0 | 0 |
ALLL and other | 0 | 4 |
Other adjustments | 0 | 1 |
Total capital | 16,184 | 16,367 |
Credit risk | 48,308 | 49,976 |
Operational risk(4) | 45,991 | 45,822 |
Market risk | 4,203 | 3,358 |
Total risk-weighted assets | 98,502 | 99,156 |
Adjusted quarterly average assets | $ 216,896 | $ 209,328 |
Common equity tier 1 capital | 12.40% | 12.30% |
Tier 1 capital | 15.70% | 15.50% |
Total capital | 16.40% | 16.50% |
Tier 1 leveraged | 7.10% | 7.30% |
Basel III Standardized Approach | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 10,324 | $ 10,302 |
Retained earnings | 19,856 | 18,856 |
Accumulated other comprehensive income (loss) | (1,446) | (972) |
Treasury stock, at cost | (9,317) | (9,029) |
Total | 19,417 | 19,157 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (7,008) | (6,877) |
Other adjustments | (186) | (76) |
Common equity tier 1 capital | 12,223 | 12,204 |
Preferred stock | 3,196 | 3,196 |
Trust preferred capital securities subject to phase-out from tier 1 capital | 0 | 0 |
Other adjustments | 0 | (18) |
Tier 1 capital | 15,419 | 15,382 |
Qualifying subordinated long-term debt | 765 | 980 |
Trust preferred capital securities phased out of tier 1 capital | 0 | 0 |
ALLL and other | 73 | 72 |
Other adjustments | 0 | 1 |
Total capital | 16,257 | 16,435 |
Credit risk | 106,063 | 101,349 |
Market risk | 1,677 | 1,334 |
Total risk-weighted assets | 107,740 | 102,683 |
Adjusted quarterly average assets | $ 216,896 | $ 209,328 |
Common equity tier 1 capital | 11.30% | 11.90% |
Tier 1 capital | 14.30% | 15.00% |
Total capital | 15.10% | 16.00% |
Tier 1 leveraged | 7.10% | 7.30% |
State Street Bank | Basel III Advanced Approaches | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 11,612 | $ 11,612 |
Retained earnings | 13,189 | 12,312 |
Accumulated other comprehensive income (loss) | (1,251) | (809) |
Treasury stock, at cost | 0 | 0 |
Total | 23,550 | 23,115 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (6,711) | (6,579) |
Other adjustments | (44) | (5) |
Common equity tier 1 capital | 16,795 | 16,531 |
Preferred stock | 0 | 0 |
Trust preferred capital securities subject to phase-out from tier 1 capital | 0 | 0 |
Other adjustments | 0 | 0 |
Tier 1 capital | 16,795 | 16,531 |
Qualifying subordinated long-term debt | 765 | 983 |
Trust preferred capital securities phased out of tier 1 capital | 0 | 0 |
ALLL and other | 0 | 0 |
Other adjustments | 0 | 0 |
Total capital | 17,560 | 17,514 |
Credit risk | 45,689 | 47,448 |
Operational risk(4) | 45,423 | 45,295 |
Market risk | 4,205 | 3,375 |
Total risk-weighted assets | 95,317 | 96,118 |
Adjusted quarterly average assets | $ 214,670 | $ 206,070 |
Common equity tier 1 capital | 17.60% | 17.20% |
Tier 1 capital | 17.60% | 17.20% |
Total capital | 18.40% | 18.20% |
Tier 1 leveraged | 7.80% | 8.00% |
State Street Bank | Basel III Standardized Approach | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 11,612 | $ 11,612 |
Retained earnings | 13,189 | 12,312 |
Accumulated other comprehensive income (loss) | (1,251) | (809) |
Treasury stock, at cost | 0 | 0 |
Total | 23,550 | 23,115 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (6,711) | (6,579) |
Other adjustments | (44) | (5) |
Common equity tier 1 capital | 16,795 | 16,531 |
Preferred stock | 0 | 0 |
Trust preferred capital securities subject to phase-out from tier 1 capital | 0 | 0 |
Other adjustments | 0 | 0 |
Tier 1 capital | 16,795 | 16,531 |
Qualifying subordinated long-term debt | 765 | 983 |
Trust preferred capital securities phased out of tier 1 capital | 0 | 0 |
ALLL and other | 73 | 72 |
Other adjustments | 0 | 0 |
Total capital | 17,633 | 17,586 |
Credit risk | 103,156 | 98,433 |
Market risk | 1,677 | 1,334 |
Total risk-weighted assets | 104,833 | 99,767 |
Adjusted quarterly average assets | $ 214,670 | $ 206,070 |
Common equity tier 1 capital | 16.00% | 16.60% |
Tier 1 capital | 16.00% | 16.60% |
Total capital | 16.80% | 17.60% |
Tier 1 leveraged | 7.80% | 8.00% |
Net Interest Income - Component
Net Interest Income - Components of Interest Revenue and Interest Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Banking and Thrift [Abstract] | ||||
Deposits with banks | $ 90 | $ 41 | $ 172 | $ 76 |
U.S. Treasury and federal agencies | 280 | 208 | 534 | 420 |
State and political subdivisions | 44 | 56 | 96 | 114 |
Other investments | 140 | 164 | 298 | 323 |
Securities purchased under resale agreements | 81 | 69 | 159 | 115 |
Loans and leases | 169 | 118 | 325 | 224 |
Other interest-earning assets | 103 | 44 | 180 | 78 |
Total interest income | 907 | 700 | 1,764 | 1,350 |
Deposits | 89 | 14 | 152 | 57 |
Securities sold under repurchase agreements | 6 | 0 | 7 | 1 |
Short-term borrowings | 4 | 3 | 7 | 5 |
Long-term debt | 97 | 75 | 194 | 148 |
Other interest-bearing liabilities | 52 | 33 | 102 | 54 |
Total interest expense | 248 | 125 | 462 | 265 |
Net interest income | $ 659 | $ 575 | $ 1,302 | $ 1,085 |
Expenses - Schedule of Expenses
Expenses - Schedule of Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Expenses [Abstract] | ||||
Insurance | $ 32 | $ 28 | $ 64 | $ 58 |
Regulatory fees and assessments | 29 | 18 | 59 | 45 |
Sales advertising public relations | 29 | 15 | 55 | 28 |
Bank operations | 22 | 19 | 39 | 34 |
Litigation | 5 | (17) | 7 | (17) |
Other | 89 | 69 | 183 | 135 |
Total other expenses | $ 206 | $ 132 | $ 407 | $ 283 |
Expenses - Narrative (Details)
Expenses - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
State Street Beacon | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 0 | $ 0 | $ 62,000,000 | $ 16,000,000 | $ 0 | $ 79,000,000 |
Expenses - Restructuring Reserv
Expenses - Restructuring Reserve (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | $ 175,000,000 | $ 201,000,000 | $ 56,000,000 | $ 201,000,000 | $ 56,000,000 | |
Ending balance | 141,000,000 | 175,000,000 | 141,000,000 | |||
Employee Related Costs | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 144,000,000 | 166,000,000 | 37,000,000 | 166,000,000 | 37,000,000 | |
Ending balance | 113,000,000 | 144,000,000 | 113,000,000 | |||
Real Estate Actions | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 28,000,000 | 32,000,000 | 17,000,000 | 32,000,000 | 17,000,000 | |
Ending balance | 25,000,000 | 28,000,000 | 25,000,000 | |||
Asset and Other Write-offs | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 3,000,000 | 3,000,000 | 2,000,000 | 3,000,000 | 2,000,000 | |
Ending balance | 3,000,000 | 3,000,000 | 3,000,000 | |||
State Street Beacon | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | $ 54,000,000 | |||||
Accruals | 0 | 0 | 62,000,000 | 16,000,000 | $ 0 | 79,000,000 |
Payments and Other Adjustments | (34,000,000) | (26,000,000) | (16,000,000) | (18,000,000) | ||
Ending balance | 100,000,000 | 54,000,000 | 100,000,000 | |||
State Street Beacon | Employee Related Costs | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 38,000,000 | |||||
Accruals | 0 | 0 | 60,000,000 | 14,000,000 | ||
Payments and Other Adjustments | (31,000,000) | (22,000,000) | (11,000,000) | (13,000,000) | ||
Ending balance | 87,000,000 | 38,000,000 | 87,000,000 | |||
State Street Beacon | Real Estate Actions | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 14,000,000 | |||||
Accruals | 0 | 0 | 0 | 0 | ||
Payments and Other Adjustments | (3,000,000) | (4,000,000) | (3,000,000) | (3,000,000) | ||
Ending balance | 11,000,000 | 14,000,000 | 11,000,000 | |||
State Street Beacon | Asset and Other Write-offs | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 2,000,000 | |||||
Accruals | 0 | 0 | 2,000,000 | 2,000,000 | ||
Payments and Other Adjustments | $ 0 | $ 0 | (2,000,000) | (2,000,000) | ||
Ending balance | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 734 | $ 620 | $ 1,395 | $ 1,122 |
Preferred stock dividends | (36) | (36) | (91) | (91) |
Dividends and undistributed earnings allocated to participating securities | (1) | (1) | ||
Net income available to common shareholders | $ 698 | $ 584 | $ 1,303 | $ 1,030 |
Basic average common shares | 365,619 | 375,395 | 366,524 | 378,293 |
Effect of dilutive securities: common stock options and common stock awards (in shares) | 4,791 | 5,520 | 4,891 | 5,196 |
Diluted average common shares | 370,410 | 380,915 | 371,415 | 383,489 |
Anti-dilutive securities (in shares) | 1,206 | 293 | 2 | 527 |
Earnings per Common Share: | ||||
Basic (in USD per share) | $ 1.91 | $ 1.56 | $ 3.55 | $ 2.72 |
Diluted (in USD per share) | $ 1.88 | $ 1.53 | $ 3.51 | $ 2.69 |
Line of Business Information -
Line of Business Information - Narrative (Details) - 6 months ended Jun. 30, 2018 | segment | line_of_business |
Segment Reporting [Abstract] | ||
Number of lines of business | 2 | 2 |
Line of Business Information 99
Line of Business Information - Summary of Line of Business (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Servicing fees | $ 1,381 | $ 1,339 | $ 2,802 | $ 2,635 |
Management fees | 465 | 397 | 937 | 779 |
Trading services | 315 | 289 | 619 | 564 |
Securities finance | 154 | 179 | 295 | 312 |
Processing fees and other | 43 | 31 | 83 | 143 |
Total fee revenue | 2,358 | 2,235 | 4,736 | 4,433 |
Net interest income | 659 | 575 | 1,302 | 1,085 |
Gains (losses) related to investment securities, net | 9 | 0 | 7 | (40) |
Total revenue | 3,026 | 2,810 | 6,045 | 5,478 |
Provision for loan losses | 2 | 3 | 2 | 1 |
Total expenses | 2,159 | 2,031 | 4,415 | 4,117 |
Income before income tax expense (benefit) | $ 865 | $ 776 | $ 1,628 | $ 1,360 |
Pre-tax margin | 29.00% | 28.00% | 27.00% | 25.00% |
Investment Servicing | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 2,530 | $ 5,052 | ||
Investment Management | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 496 | 993 | ||
Operating Segments | Investment Servicing | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fees | 1,381 | $ 1,339 | 2,802 | $ 2,635 |
Management fees | 0 | 0 | 0 | 0 |
Trading services | 282 | 272 | 555 | 529 |
Securities finance | 154 | 179 | 295 | 312 |
Processing fees and other | 41 | 32 | 82 | 138 |
Total fee revenue | 1,858 | 1,822 | 3,734 | 3,614 |
Net interest income | 663 | 576 | 1,311 | 1,085 |
Gains (losses) related to investment securities, net | 9 | 0 | 7 | (40) |
Total revenue | 2,530 | 2,398 | 5,052 | 4,659 |
Provision for loan losses | 2 | 3 | 2 | 1 |
Total expenses | 1,693 | 1,649 | 3,551 | 3,377 |
Income before income tax expense (benefit) | $ 835 | $ 746 | $ 1,499 | $ 1,281 |
Pre-tax margin | 33.00% | 31.00% | 30.00% | 27.00% |
Operating Segments | Investment Management | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fees | $ 0 | $ 0 | $ 0 | $ 0 |
Management fees | 465 | 397 | 937 | 779 |
Trading services | 33 | 17 | 64 | 35 |
Securities finance | 0 | 0 | 0 | 0 |
Processing fees and other | 2 | (1) | 1 | 5 |
Total fee revenue | 500 | 413 | 1,002 | 819 |
Net interest income | (4) | (1) | (9) | 0 |
Gains (losses) related to investment securities, net | 0 | 0 | 0 | 0 |
Total revenue | 496 | 412 | 993 | 819 |
Provision for loan losses | 0 | 0 | 0 | 0 |
Total expenses | 389 | 311 | 787 | 640 |
Income before income tax expense (benefit) | $ 107 | $ 101 | $ 206 | $ 179 |
Pre-tax margin | 22.00% | 25.00% | 21.00% | 22.00% |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fees | $ 0 | $ 0 | $ 0 | $ 0 |
Management fees | 0 | 0 | 0 | 0 |
Trading services | 0 | 0 | 0 | 0 |
Securities finance | 0 | 0 | 0 | 0 |
Processing fees and other | 0 | 0 | 0 | 0 |
Total fee revenue | 0 | 0 | 0 | 0 |
Net interest income | 0 | 0 | 0 | 0 |
Gains (losses) related to investment securities, net | 0 | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 | 0 |
Provision for loan losses | 0 | 0 | 0 | 0 |
Total expenses | 77 | 71 | 77 | 100 |
Income before income tax expense (benefit) | $ (77) | $ (71) | $ (77) | $ (100) |
Revenue from Contracts with 100
Revenue from Contracts with Customers - Disaggregation of Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Servicing fees | $ 1,381 | $ 1,339 | $ 2,802 | $ 2,635 |
Management fees | 465 | 397 | 937 | 779 |
Trading services | 315 | 289 | 619 | 564 |
Securities finance | 154 | 179 | 295 | 312 |
Processing fees and other | 43 | 31 | 83 | 143 |
Total fee revenue | 2,358 | 2,235 | 4,736 | 4,433 |
Net interest income | 659 | 575 | 1,302 | 1,085 |
Gains (losses) related to investment securities, net | 9 | 0 | 7 | (40) |
Total revenue | 3,026 | $ 2,810 | 6,045 | $ 5,478 |
Investment Servicing | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 1,585 | 3,198 | ||
All other revenue | 945 | 1,854 | ||
Total revenue | 2,530 | 5,052 | ||
Investment Servicing | Servicing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 1,381 | 2,802 | ||
All other revenue | 0 | 0 | ||
Servicing fees | 1,381 | 2,802 | ||
Investment Servicing | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | 0 | 0 | ||
Management fees | 0 | 0 | ||
Investment Servicing | Trading services | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 91 | 186 | ||
All other revenue | 191 | 369 | ||
Trading services | 282 | 555 | ||
Investment Servicing | Securities finance | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 90 | 167 | ||
All other revenue | 64 | 128 | ||
Securities finance | 154 | 295 | ||
Investment Servicing | Processing fees and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 23 | 43 | ||
All other revenue | 18 | 39 | ||
Processing fees and other | 41 | 82 | ||
Investment Servicing | Total fee revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 1,585 | 3,198 | ||
All other revenue | 273 | 536 | ||
Total fee revenue | 1,858 | 3,734 | ||
Investment Servicing | Net interest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | 663 | 1,311 | ||
Net interest income | 663 | 1,311 | ||
Investment Servicing | Securities gains/ (losses) | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | 9 | 7 | ||
Gains (losses) related to investment securities, net | 9 | 7 | ||
Investment Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 498 | 1,001 | ||
All other revenue | (2) | (8) | ||
Total revenue | 496 | 993 | ||
Investment Management | Servicing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | 0 | 0 | ||
Servicing fees | 0 | 0 | ||
Investment Management | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 465 | 937 | ||
All other revenue | 0 | 0 | ||
Management fees | 465 | 937 | ||
Investment Management | Trading services | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 33 | 64 | ||
All other revenue | 0 | 0 | ||
Trading services | 33 | 64 | ||
Investment Management | Securities finance | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | 0 | 0 | ||
Securities finance | 0 | 0 | ||
Investment Management | Processing fees and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | 2 | 1 | ||
Processing fees and other | 2 | 1 | ||
Investment Management | Total fee revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 498 | 1,001 | ||
All other revenue | 2 | 1 | ||
Total fee revenue | 500 | 1,002 | ||
Investment Management | Net interest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | (4) | (9) | ||
Net interest income | (4) | (9) | ||
Investment Management | Securities gains/ (losses) | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | 0 | 0 | ||
Gains (losses) related to investment securities, net | $ 0 | $ 0 |
Revenue from Contracts with 101
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Billions | Jun. 30, 2018 | Dec. 31, 2017 |
Accrued Interest and Fees Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables related to contracts with customers | $ 2.6 | $ 2.6 |
Non-U.S. Activities - Narrative
Non-U.S. Activities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 3,026 | $ 2,810 | $ 6,045 | $ 5,478 | |
Assets | 248,308 | 248,308 | $ 238,425 | ||
Non-U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,322 | 1,172 | 2,643 | 2,268 | |
Assets | $ 84,900 | $ 73,200 | $ 84,900 | $ 73,200 |
Non-U.S. Activities - Schedule
Non-U.S. Activities - Schedule Of Results From Non-U.S. Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 3,026 | $ 2,810 | $ 6,045 | $ 5,478 |
Income before income taxes | 865 | 776 | 1,628 | 1,360 |
Non-U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,322 | 1,172 | 2,643 | 2,268 |
Income before income taxes | 427 | 324 | 846 | 583 |
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,704 | 1,638 | 3,402 | 3,210 |
Income before income taxes | $ 438 | $ 452 | $ 782 | $ 777 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event - Charles River Development $ in Millions | Jul. 20, 2018USD ($) |
Subsequent Event [Line Items] | |
Payment for acquisition | $ 2,600 |
Amount of share repurchase program suspended to finance acquisition | $ 950 |