Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2018 | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | STATE STREET Corp |
Entity Central Index Key | 0000093751 |
Entity Emerging Growth Company | false |
Document Type | 8-K |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fee revenue: | |||
Servicing fees | $ 5,421 | $ 5,365 | $ 5,073 |
Management fees | 1,851 | 1,616 | 1,292 |
Foreign exchange trading services | 1,201 | 1,071 | 1,099 |
Securities finance | 543 | 606 | 562 |
Processing fees and other | 438 | 343 | 174 |
Total fee revenue | 9,454 | 9,001 | 8,200 |
Net interest income: | |||
Interest income | 3,662 | 2,908 | 2,512 |
Interest expense | 991 | 604 | 428 |
Net interest income | 2,671 | 2,304 | 2,084 |
Gains (losses) related to investment securities, net: | |||
Gains (losses) from sales of available-for-sale securities, net | 9 | (39) | 10 |
Losses from other-than-temporary impairment | (3) | 0 | (2) |
Losses reclassified (from) to other comprehensive income | 0 | 0 | (1) |
Gains (losses) related to investment securities, net | 6 | (39) | 7 |
Total revenue | 12,131 | 11,266 | 10,291 |
Provision for loan losses | 15 | 2 | 10 |
Expenses: | |||
Compensation and employee benefits | 4,780 | 4,394 | 4,353 |
Information systems and communications | 1,324 | 1,167 | 1,105 |
Transaction processing services | 985 | 838 | 800 |
Occupancy | 500 | 461 | 440 |
Acquisition and restructuring costs | 24 | 266 | 209 |
Amortization of other intangible assets | 226 | 214 | 207 |
Other | 1,176 | 929 | 963 |
Total expenses | 9,015 | 8,269 | 8,077 |
Income before income tax expense (benefit) | 3,101 | 2,995 | 2,204 |
Income tax expense (benefit) | 508 | 839 | 67 |
Net income from non-controlling interest | 0 | 0 | 1 |
Net income | 2,593 | 2,156 | 2,138 |
Net income available to common shareholders | $ 2,404 | $ 1,972 | $ 1,963 |
Earnings per common share: | |||
Basic (in USD per share) | $ 6.46 | $ 5.26 | $ 5.01 |
Diluted (in USD per share) | $ 6.39 | $ 5.19 | $ 4.96 |
Average common shares outstanding (in thousands): | |||
Basic (in shares) | 371,983 | 374,793 | 391,485 |
Diluted (in shares) | 376,476 | 380,213 | 396,090 |
Cash dividends declared (in USD per share) | $ 1.78 | $ 1.6 | $ 1.44 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 2,593 | $ 2,156 | $ 2,138 |
Other comprehensive income (loss), net of related taxes: | |||
Foreign currency translation, net of related taxes of ($8), $21 and ($11), respectively | (67) | 900 | (372) |
Net unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment and net of related taxes of ($134), $272 and ($119), respectively | (302) | 367 | (181) |
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes of $9, $16 and $16, respectively | 24 | 22 | 23 |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of $2, $3 and $5, respectively | 4 | 3 | 7 |
Net unrealized gains (losses) on cash flow hedges, net of related taxes of ($17), ($181) and ($42), respectively | (33) | (285) | (64) |
Net unrealized gains (losses) on retirement plans, net of related taxes of $8, $8 and $1, respectively | 27 | 24 | (11) |
Other comprehensive income (loss) | (347) | 1,031 | (598) |
Total comprehensive income | $ 2,246 | $ 3,187 | $ 1,540 |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation, Taxes | $ (8) | $ 21 | $ (11) |
Change in net unrealized losses on available-for-sale securities, Taxes | (134) | 272 | (119) |
Change in net unrealized losses on available-for-sale securities designated in fair value hedges, Taxes | 9 | 16 | 16 |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, Taxes | 2 | 3 | 5 |
Change in net unrealized losses on cash flow hedges, Taxes | (17) | (181) | (42) |
Change in unrealized losses on retirement plans, Taxes | $ 8 | $ 8 | $ 1 |
Consolidated Statement of Condi
Consolidated Statement of Condition - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash and due from banks | $ 3,597 | $ 2,107 |
Interest-bearing deposits with banks | 73,040 | 67,227 |
Securities purchased under resale agreements | 4,679 | 3,241 |
Trading account assets | 860 | 1,093 |
Investment securities available-for-sale | 45,148 | 57,121 |
Investment securities held-to-maturity (fair value of $41,351 and $40,255) | 41,914 | 40,458 |
Loans and leases (less allowance for losses of $67 and $54) | 25,722 | 23,240 |
Premises and equipment (net of accumulated depreciation of $4,152 and $3,881) | 2,214 | 2,186 |
Accrued interest and fees receivable | 3,203 | 3,099 |
Goodwill | 7,446 | 6,022 |
Other intangible assets | 2,369 | 1,613 |
Other assets | 34,404 | 30,985 |
Total assets | 244,596 | 238,392 |
Deposits: | ||
Non-interest-bearing | 44,804 | 47,175 |
Interest-bearing - U.S. | 66,235 | 50,139 |
Interest-bearing - non-U.S. | 69,321 | 87,582 |
Total deposits | 180,360 | 184,896 |
Securities sold under repurchase agreements | 1,082 | 2,842 |
Other short-term borrowings | 3,092 | 1,144 |
Accrued expenses and other liabilities | 24,232 | 15,620 |
Long-term debt | 11,093 | 11,620 |
Total liabilities | 219,859 | 216,122 |
Commitments, guarantees and contingencies (Notes 12 and 13) | ||
Shareholders’ equity: | ||
Common stock, $1 par, 750,000,000 shares authorized: 503,879,642 and 503,879,642 shares issued, and 379,946,724 and 367,649,858 shares outstanding | 504 | 504 |
Surplus | 10,061 | 9,799 |
Retained earnings | 20,553 | 18,809 |
Accumulated other comprehensive income (loss) | (1,356) | (1,009) |
Treasury stock, at cost (123,932,918 and 136,229,784 shares) | (8,715) | (9,029) |
Total shareholders’ equity | 24,737 | 22,270 |
Total liabilities and shareholders' equity | 244,596 | 238,392 |
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, Series G, 5,000 shares issued and outstanding, and Series H, 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, Series G, 5,000 shares issued and outstanding, and Series H, 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, Series G, 5,000 shares issued and outstanding, and Series H, 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, Series G, 5,000 shares issued and outstanding, and Series H, 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, Series G, 5,000 shares issued and outstanding, and Series H, 5,000 shares issued and outstanding | 493 | 493 |
Series H 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, Series G, 5,000 shares issued and outstanding, and Series H, 5,000 shares issued and outstanding | $ 494 | $ 0 |
Consolidated Statement of Con_2
Consolidated Statement of Condition (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Investment securities held-to-maturity, fair value | $ 41,351 | $ 40,255 |
Loans and leases, allowance for losses | 67 | 54 |
Premises and equipment, accumulated depreciation | $ 4,152 | $ 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 (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 503,879,642 | 503,879,642 |
Common stock, shares outstanding (in shares) | 379,946,724 | 367,649,858 |
Treasury stock, shares (in shares) | 123,932,918 | 136,229,784 |
Series C Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 5,000 | 5,000 |
Preferred stock, shares outstanding (in shares) | 5,000 | 5,000 |
Series D Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 7,500 | 7,500 |
Preferred stock, shares outstanding (in shares) | 7,500 | 7,500 |
Series E Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 7,500 | 7,500 |
Preferred stock, shares outstanding (in shares) | 7,500 | 7,500 |
Series F Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 7,500 | 7,500 |
Preferred stock, shares outstanding (in shares) | 7,500 | 7,500 |
Series G Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 5,000 | 5,000 |
Preferred stock, shares outstanding (in shares) | 5,000 | 5,000 |
Series H Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 5,000 | 0 |
Preferred stock, shares outstanding (in shares) | 5,000 | 0 |
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, 2015 | $ 21,082 | $ 2,703 | $ 504 | $ 9,746 | $ 16,028 | $ (1,442) | $ (6,457) |
Beginning balance (shares) at Dec. 31, 2015 | 503,880 | 104,228 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,138 | ||||||
Other comprehensive income (loss) | (598) | (598) | |||||
Preferred stock issued | 493 | 493 | |||||
Cash dividends declared: | |||||||
Common stock dividends | (559) | (559) | |||||
Preferred stock cash dividend | (173) | (173) | |||||
Common stock acquired | (1,365) | $ (1,365) | |||||
Common stock acquired (shares) | 21,098 | ||||||
Common stock awards vested | 175 | 36 | $ 139 | ||||
Common stock awards vested (shares) | (3,369) | ||||||
Other | 0 | (1) | $ 1 | ||||
Other (shares) | 16 | ||||||
Ending balance at Dec. 31, 2016 | 21,193 | 3,196 | $ 504 | 9,782 | 17,433 | (2,040) | $ (7,682) |
Ending balance (shares) at Dec. 31, 2016 | 503,880 | 121,941 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,156 | 2,156 | |||||
Other comprehensive income (loss) | 1,031 | 1,031 | |||||
Cash dividends declared: | |||||||
Common stock dividends | (596) | (596) | |||||
Preferred stock cash dividend | (182) | (182) | |||||
Common stock acquired | (1,450) | $ (1,450) | |||||
Common stock acquired (shares) | 16,788 | ||||||
Common stock awards vested | 120 | 16 | $ 104 | ||||
Common stock awards vested (shares) | (2,503) | ||||||
Other | (2) | (1) | (2) | $ 1 | |||
Other (shares) | 4 | ||||||
Ending balance at Dec. 31, 2017 | 22,270 | 3,196 | $ 504 | 9,799 | 18,809 | (1,009) | $ (9,029) |
Ending balance (shares) at Dec. 31, 2017 | 503,880 | 136,230 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,593 | 2,593 | |||||
Other comprehensive income (loss) | (347) | (347) | |||||
Preferred stock issued | 494 | 494 | |||||
Common stock issued | 1,150 | 586 | $ 564 | ||||
Common stock issued (shares) | (13,244) | ||||||
Cash dividends declared: | |||||||
Common stock dividends | (665) | (665) | |||||
Preferred stock cash dividend | (188) | (188) | |||||
Common stock acquired | (350) | $ (350) | |||||
Common stock acquired (shares) | 3,324 | ||||||
Common stock awards vested | 145 | 44 | $ 101 | ||||
Common stock awards vested (shares) | (2,389) | ||||||
Other | (365) | 368 | 4 | $ (1) | |||
Other (shares) | 12 | ||||||
Ending balance at Dec. 31, 2018 | $ 24,737 | $ 3,690 | $ 504 | $ 10,061 | $ 20,553 | $ (1,356) | $ (8,715) |
Ending balance (shares) at Dec. 31, 2018 | 503,880 | 123,933 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes In Shareholders' Equity (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Cash dividends declared (in USD per share) | $ / shares | $ 1.44 |
Common stock awards and options exercised, related taxes | $ | $ 13 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities: | |||
Net income | $ 2,593 | $ 2,156 | $ 2,138 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Deferred income tax (benefit) | (136) | 92 | (356) |
Amortization of other intangible assets | 226 | 214 | 207 |
Other non-cash adjustments for depreciation, amortization and accretion, net | 977 | 871 | 722 |
(Gains) losses related to investment securities, net | (6) | 39 | (7) |
Change in trading account assets, net | 233 | (69) | (175) |
Change in accrued interest and fees receivable, net | 26 | (455) | (298) |
Change in collateral deposits, net | 7,326 | 1,819 | (18) |
Change in unrealized (gains) losses on foreign exchange derivatives, net | (1,836) | 3,267 | (1,057) |
Change in other assets, net | 260 | (1,341) | 1,772 |
Change in accrued expenses and other liabilities, net | 394 | 33 | (1,144) |
Other, net | 400 | 307 | 506 |
Net cash provided by operating activities | 10,457 | 6,933 | 2,290 |
Investing Activities: | |||
Net (increase) decrease in interest-bearing deposits with banks | (5,813) | 3,708 | 4,403 |
Net (increase) decrease in securities purchased under resale agreements | (1,438) | (1,285) | 1,448 |
Proceeds from sales of available-for-sale securities | 26,082 | 12,439 | 1,401 |
Proceeds from maturities of available-for-sale securities | 14,645 | 28,878 | 30,070 |
Purchases of available-for-sale securities | (31,814) | (34,841) | (30,162) |
Proceeds from maturities of held-to-maturity securities | 6,296 | 4,028 | 7,942 |
Purchases of held-to-maturity securities | (6,539) | (8,772) | (8,425) |
Net (increase) in loans and leases | (2,461) | (3,511) | (924) |
Business acquisitions, net of cash acquired | (2,595) | 0 | (437) |
Purchases of equity investments and other long-term assets | (326) | (233) | (643) |
Purchases of premises and equipment, net | (609) | (637) | (613) |
Proceeds from sale of joint venture investment | 0 | 172 | 0 |
Other, net | 76 | 102 | 170 |
Net cash (used in) provided by investing activities | (4,496) | 48 | 4,230 |
Financing Activities: | |||
Net increase (decrease) in time deposits | 6,673 | (15,306) | 8,488 |
Net (decrease) increase in all other deposits | (11,209) | 13,040 | (12,952) |
Net increase (decrease) in other short-term borrowings | 188 | ||
Net increase (decrease) in other short-term borrowings | (1,999) | (268) | |
Proceeds from issuance of long-term debt, net of issuance costs | 995 | 747 | 1,492 |
Payments for long-term debt and obligations under capital leases | (1,461) | (493) | (1,441) |
Proceeds from issuance of preferred stock, net of issuance costs | 495 | 0 | 493 |
Proceeds from issuance of common stock, net of issuance costs | 1,150 | 0 | 0 |
Repurchases of common stock | (350) | (1,292) | (1,365) |
Excess tax benefit related to stock-based compensation | 0 | 0 | 13 |
Repurchases of common stock for employee tax withholding | (124) | (126) | (122) |
Payments for cash dividends | (828) | (768) | (723) |
Other, net | 0 | 9 | (28) |
Net cash (used in) financing activities | (4,471) | (6,188) | (6,413) |
Net increase | 1,490 | 793 | 107 |
Cash and due from banks at beginning of period | 2,107 | 1,314 | 1,207 |
Cash and due from banks at end of period | 3,597 | 2,107 | 1,314 |
Supplemental disclosure: | |||
Interest paid | 981 | 593 | 441 |
Income taxes paid, net | $ 549 | $ 345 | $ 371 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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, including our principal banking subsidiary, State Street Bank. We have two lines of business: Investment Servicing provides a suite of related products and services including: custody; product and participant level accounting; daily pricing and administration; master trust and master custody; depotbank services (a fund oversight role created by regulation); record-keeping; cash management; foreign exchange, brokerage and other trading services; securities finance; our enhanced custody product, which integrates principal securities lending and custody; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; performance, risk and compliance analytics; and financial data management to support institutional investors. New products and services resulting from our acquisition of Charles River Development on October 1, 2018 include: portfolio modeling and construction, trade order management, investment risk and compliance and wealth management solutions. Investment Management , through State Street Global Advisors, provides a broad range of investment management strategies and products for our clients. Our investment management strategies and products span the risk/reward spectrum, including core and enhanced indexing, multi-asset strategies, active quantitative and fundamental active capabilities and alternative investment strategies. Our AUM is currently primarily weighted to indexed strategies. In addition, we provide a breadth of services and solutions, including environmental, social and governance investing, defined benefit and defined contribution and OCIO. State Street Global Advisors is also a provider of ETFs, including the SPDR ® ETF brand. Consolidation Our consolidated financial statements include the accounts of the Parent Company and its majority- and wholly-owned and otherwise controlled subsidiaries, including State Street Bank. All material inter-company transactions and balances have been eliminated. Certain previously reported amounts have been reclassified to conform to current-year presentation. We consolidate subsidiaries in which we exercise control. Investments in unconsolidated subsidiaries, recorded in other assets, generally are accounted for under the equity method of accounting if we have the ability to exercise significant influence over the operations of the investee. For investments accounted for under the equity method, our share of income or loss is recorded in processing fees and other revenue in our consolidated statement of income. Investments not meeting the criteria for equity-method treatment are measured at fair value through earnings, except for investments where a fair market value is not readily available, which are accounted for under the cost method of accounting. Use of Estimates 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. Foreign Currency Translation The assets and liabilities of our operations with functional currencies other than the U.S. dollar are translated at month-end exchange rates, and revenue and expenses are translated at rates that approximate average monthly exchange rates. Gains or losses from the translation of the net assets of subsidiaries with functional currencies other than the U.S. dollar, net of related taxes, are recorded in AOCI, a component of shareholders’ equity. Cash and Cash Equivalents For purposes of the consolidated statement of cash flows, cash and cash equivalents are defined as cash and due from banks. Interest-Bearing Deposits with Banks Interest-bearing deposits with banks generally consist of highly liquid, short-term investments maintained at the Federal Reserve Bank and other non-U.S. central banks with original maturities at the time of purchase of one month or less. Securities Purchased Under Resale Agreements and Securities Sold Under Repurchase Agreements Securities purchased under resale agreements and sold under repurchase agreements are treated as collateralized financing transactions, and are recorded in our consolidated statement of condition at the amounts at which the securities will be subsequently resold or repurchased, plus accrued interest. Our policy is to take possession or control of securities underlying resale agreements either directly or through agent banks, allowing borrowers the right of collateral substitution and/or short-notice termination. We revalue these securities daily to determine if additional collateral is necessary from the borrower to protect us against credit exposure. We can use these securities as collateral for repurchase agreements. For securities sold under repurchase agreements collateralized by our investment securities portfolio, the dollar value of the securities remains in investment securities in our consolidated statement of condition. Where a master netting agreement exists or both parties are members of a common clearing organization, resale and repurchase agreements with the same counterparty or clearing house and maturity date are recorded on a net basis. Fee and Net Interest Income The majority of fees from investment servicing, investment management, securities finance, trading services and certain types of processing fees and other revenue are recorded in our consolidated statement of income based on the consideration specified in contracts with our customers, and excludes taxes collected from customers subsequently remitted to governmental authorities. We recognize revenue as the services are performed or at a point in time depending on the nature of the services provided. Payments made to third party service providers are generally recognized on a gross basis when we control those services and are deemed to be the principal. Additional information about revenue from contracts with customers is provided in Note 25 . Interest income on interest-earning assets and interest expense on interest-bearing liabilities are recorded in our consolidated statement of income as components of NII, and are generally based on the effective yield of the related financial asset or liability. Other Significant Policies The following table identifies our other significant accounting policies and the note and page where a detailed description of each policy can be found: Fair Value Note 2 Page Investment Securities Note 3 Page Loans and Leases Note 4 Page Goodwill and Other Intangible Assets Note 5 Page Derivative Financial Instruments Note 10 Page Offsetting Arrangements Note 11 Page Contingencies Note 13 Page Variable Interest Entities Note 14 Page Regulatory Capital Note 16 Page Equity-Based Compensation Note 18 Page Income Taxes Note 22 Page Earnings Per Common Share Note 23 Page Revenue from Contracts with Customers Note 25 Page Acquisitions and Dispositions On October 1, 2018, we acquired a 100% interest in Charles River Development, a provider of investment management front office tools and solutions, for an all cash purchase price of approximately $2.6 billion . We accounted for this acquisition as a business combination and, in accordance with ASC Topic 805, Business Combinations , we have recorded assets acquired and liabilities assumed at their respective fair values as of the acquisition date. A significant portion of the purchase price is allocated to goodwill and identifiable intangible assets. Goodwill of $1.5 billion , of which approximately $1.4 billion is expected to be deductible for tax purposes, is attributable to revenue and cost synergies expected to arise from enhanced platform services and efficiencies, revenue growth from future product and service offerings and new customers, together with certain intangible assets that do not qualify for separate recognition. Identifiable intangible assets of $1.0 billion arising from the acquisition are primarily related to technology and client relationships which are amortized on a straight line basis over a period of 10 and 18 years , respectively. We determined the estimated fair value of identifiable intangible assets acquired by applying the income approach. Additional information about goodwill and other intangible assets, including information by line of business is provided in Note 5 . The purchase price accounting reflected in the accompanying financial statements is provisional and is based upon estimates and assumptions that are subject to change within the measurement period (up to one year from the acquisition date pursuant to ASC 805). The measurement period remains open pending the completion of valuation procedures related to the acquired assets and assumed liabilities, primarily the identifiable intangible assets. Our consolidated financial statements include the operating results for the acquired business from the date of acquisition, October 1, 2018. Charles River Development contributed approximately $121 million and $57 million in total revenue and total expenses, respectively, for the year ended December 31, 2018. Pro forma results of operations for this acquisition have not been presented because the effects would not have been material to our consolidated revenues or net income. Recent Accounting Developments Relevant standards that were recently issued but not yet adopted as of December 31, 2018: Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2016-02, Leases (Topic 842) and relevant amendments 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 have adopted the new standard as of January 1, 2019. Upon adoption of the standard, we recognized the required right-of-use assets of approximately $0.9 billion and lease liabilities of approximately $1.1 billion. This increase largely relates to the present value of future minimum lease payments due under existing operating leases of office space. No material changes are expected to the recognition of lease expenses in the Consolidated Statement of Income. We adopted the standard by applying the transition method whereby comparative periods will not be restated, and no material adjustment to retained earnings was required. For adoption we elected the standard’s package of three practical expedients, and (1) have not reassessed whether any expired or existing contracts are or contain leases, (2) have not reassessed the lease classification for any expired or existing leases, and (3) have not reassessed initial direct costs for any existing leases. In addition, we made an accounting policy election not to apply the recognition requirements to short-term leases, and have elected the practical expedient to not separate lease and nonlease components. 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 continuing to assess the impact of the standard on our consolidated financial statements. We have established a steering committee to provide cross-functional governance over the project plan and key decisions, and are continuing to develop key accounting policies, assess existing credit loss models and processes against the new guidance and address data requirements and sources to ensure that the expected credit losses are calculated in accordance with the standard. We continue to develop and test new and modified credit loss models and based on our analysis to date, we expect the recognition of 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 our portfolio and the macroeconomic factors on the date of adoption. We plan to adopt the new guidance on January 1, 2020. 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. The standard does not impact debt securities which are held at a discount. The guidance requires a cumulative effect of initial application to be recognized in retained earnings at the beginning of the period of adoption. January 1, 2019 We have adopted the new standard as of January 1, 2019. No material adjustment to retained earnings was required. 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 We have adopted the new standard as of January 1, 2019. Upon adoption of the standard we reclassified approximately $84 million of stranded tax effects from accumulated other comprehensive income to retained earnings. Relevant standards that were recently issued but not yet adopted as of December 31, 2018 (continued): Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement The standard eliminates, amends and adds disclosure requirements for fair value measurements. January 1, 2020, early adoption permitted, including partial early adoption. Provisions that eliminate or amend disclosures can be early adopted without early adopting the new disclosure requirements. We have elected to early adopt the provisions of the new standard that eliminate or amend disclosures as of December 31, 2018 and our disclosures were modified accordingly. The provisions of the new standard that add disclosures will be adopted upon the effective date of the standard. ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) This standard addresses accounting for fees paid by a customer for implementation, set-up and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor, i.e., a service contract. The new guidance aligns treatment for capitalization of implementation costs with guidance on internal-use software. January 1, 2020, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. Relevant standards that were adopted during the year ended December 31, 2018: We adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), effective 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 condition, 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 foreign exchange trading services revenue, are now reported on a gross basis in expenses. For the year ended December 31, 2018 , both revenues and expenses increased by approximately $319 million , primarily due to the updated principal and agent guidance. The revenue impact was approximately $190 million in management fees, $58 million in foreign exchange trading services and $71 million across other revenue lines, and th e expense impact was approximatel y $183 million in other expe nses, $106 million in transaction processing and $30 million across other expense line items . Adoption of the standard had no impact on cash from or used in operating, finan cing, or investing activities in our consolidated statements of cash flows. We adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, effective October 1, 2018. 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. The guidance permits a one-time reclassification of debt securities eligible to be hedged under the "last-of-layer" method from HTM to AFS upon adoption. In the fourth quarter of 2018, we elected to make a one-time transfer of qualifying securities with a total book value of approximately $1.2 billion . We have applied certain aspects of the updated standard to existing hedges as permitted by the ASU, however, the adoption did not have a material impact on our financial statements. 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 classified as AFS to 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 December 31, 2018 , were immaterial to the financial statements. Change in Accounting Method During the first quarter of 2019, we voluntarily changed our accounting method under the FASB ASC 323, Investments - Equity Method and Joint Ventures , for investments in low income housing tax credit (LIHTC) from the equity method of accounting to the proportional amortization method of accounting. While both methods of accounting are acceptable under U.S. GAAP, we believe the proportional method is preferable because it more fairly represents the economics of LIHTC investments, which are made primarily for the purpose of receiving tax credits and other tax benefits. In addition, this method aligns to the method typically used by the companies within our industry which have similar investments. In addition to the change in the timing of the recognition of income on LIHTC investments, amortization of the LIHTC investments is now recorded fully within the Income tax expense (benefit) line instead of the Processing fees and other line on the consolidated statements of operations. This change in accounting method has been applied retrospectively to all prior periods presented herein, resulting in a reduction in the opening balance of Retained earnings as of January 1, 2017 of $26 million . In addition, the following presents the effect of the changes on the financial statement line items for prior periods presented: Consolidated Statement of Condition Impact December 31, 2018 December 31, 2017 (Dollars in millions) Originally Reported Change in Accounting Revised Originally Reported Change in Accounting Revised Assets: Other assets $ 34,434 $ (30 ) $ 34,404 $ 31,018 $ (33 ) $ 30,985 Total assets 244,626 (30 ) 244,596 238,425 (33 ) 238,392 Liabilities and stockholders' equity: Accrued expenses and other liabilities $ 24,209 $ 23 $ 24,232 $ 15,606 $ 14 $ 15,620 Retained earnings 20,606 (53 ) 20,553 18,856 (47 ) 18,809 Total liabilities and stockholders' equity 244,626 (30 ) 244,596 238,425 (33 ) 238,392 Consolidated Statement of Income Impact (Dollars in millions, except per share amounts, or where otherwise noted) 2016 Reported Change in Acctg 2016 Revised 2017 Reported Change in Acctg 2017 Revised 2018 Reported Change in Acctg Other Adj 2018 Revised Processing fees and other 90 84 174 247 96 343 289 102 47 438 Total fee revenue 8,116 84 8,200 8,905 96 9,001 9,305 102 47 9,454 Income tax expense (benefit) (22 ) 89 67 722 117 839 400 108 — 508 Net income $ 2,143 $ (5 ) $ 2,138 $ 2,177 $ (21 ) $ 2,156 $ 2,599 $ (6 ) $ — $ 2,593 Earnings per common share: Basic $ 5.03 $ (0.02 ) $ 5.01 $ 5.32 $ (0.06 ) $ 5.26 $ 6.48 $ (0.02 ) $ — $ 6.46 Diluted 4.97 (0.01 ) 4.96 5.24 (0.05 ) 5.19 6.40 (0.01 ) — 6.39 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 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. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to valuation methods using significant unobservable inputs (level 3). If the inputs used to measure a financial asset or liability cross different levels of the hierarchy, categorization is based on the lowest-level input that is significant to the fair-value measurement. Management's assessment of the significance of a particular input to the overall fair-value measurement of a financial asset or liability requires judgment, and considers factors specific to that asset or liability. The three levels of the valuation hierarchy are described below. Level 1. Financial assets and liabilities with values based on unadjusted quoted prices for identical assets or liabilities in an active market. Our level 1 financial assets and liabilities primarily include positions in U.S. government securities and highly liquid U.S. and non-U.S. government fixed-income securities. Our level 1 financial assets also include actively traded exchange-traded equity securities. Level 2. Financial assets and liabilities with values based on quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include the following: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in non-active markets; • Pricing models whose inputs are observable for substantially the full term of the asset or liability; and • Pricing models whose inputs are derived principally from, or corroborated by, observable market information through correlation or other means for substantially the full term of the asset or liability. Our level 2 financial assets and liabilities primarily include non-U.S. debt securities carried in trading account assets and various types of fixed-income AFS investment securities, as well as various types of foreign exchange and interest rate derivative instruments. Fair value for our AFS investment securities categorized in level 2 is measured primarily using information obtained from independent third parties. This third-party information is subject to review by management as part of a validation process, which includes obtaining an understanding of the underlying assumptions and the level of market participant information used to support those assumptions. In addition, management compares significant assumptions used by third parties to available market information. Such information may include known trades or, to the extent that trading activity is limited, comparisons to market research information pertaining to credit expectations, execution prices and the timing of cash flows and, where information is available, back-testing. Derivative instruments categorized in level 2 predominantly represent foreign exchange contracts used in our trading activities, for which fair value is measured using discounted cash-flow techniques, with inputs consisting of observable spot and forward points, as well as observable interest rate curves. With respect to derivative instruments, we evaluate the impact on valuation of the credit risk of our counterparties. We consider factors such as the likelihood of default by our counterparties, our current and potential future net exposures and remaining maturities in determining the fair value. Valuation adjustments associated with derivative instruments were not material to those instruments for the years ended December 31, 2018 and 2017 . Level 3. Financial assets and liabilities with values based on prices or valuation techniques that require inputs that are both unobservable in the market and significant to the overall measurement of fair value. These inputs reflect management's judgment about the assumptions that a market participant would use in pricing the financial asset or liability, and are based on the best available information, some of which may be internally developed. The following provides a more detailed discussion of our financial assets and liabilities that we may categorize in level 3 and the related valuation methodology. • The fair value of our investment securities categorized in level 3 is measured using information obtained from third-party sources, typically non-binding broker/dealer quotes, or through the use of internally-developed pricing models. Management has evaluated its methodologies used to measure fair value, and has considered the level of observable market information to be insufficient to categorize the securities in level 2. • The fair value of certain foreign exchange contracts, primarily options, is measured using an option-pricing model. Because of a limited number of observable transactions, certain model inputs are not observable, such as implied volatility surface, but are derived from observable market information. Our level 3 financial assets and liabilities are similar in structure and profile to our level 1 and level 2 financial instruments, but they trade in less liquid markets, and the measurement of their fair value is inherently less observable. 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. Fair Value Measurements on a Recurring Basis As of December 31, 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 $ 34 $ — $ — $ 34 Non-U.S. government securities 146 179 — 325 Other — 501 — 501 Total trading account assets 180 680 — 860 AFS investment securities: U.S. Treasury and federal agencies: Direct obligations 1,039 — — 1,039 Mortgage-backed securities — 15,968 — 15,968 Total U.S. Treasury and federal agencies 1,039 15,968 — 17,007 Asset-backed securities: Student loans — 541 — 541 Credit cards — 583 — 583 Collateralized loan obligations — — 593 593 Total asset-backed securities — 1,124 593 1,717 Non-U.S. debt securities: Mortgage-backed securities — 1,682 — 1,682 Asset-backed securities — 943 631 1,574 Government securities — 12,793 — 12,793 Other (2) — 6,544 58 6,602 Total non-U.S. debt securities — 21,962 689 22,651 State and political subdivisions — 1,918 — 1,918 Collateralized mortgage obligations — 195 2 197 Other U.S. debt securities — 1,658 — 1,658 Total AFS investment securities 1,039 42,825 1,284 45,148 Other assets: Derivative instruments: Foreign exchange contracts — 16,382 4 $ (11,210 ) 5,176 Interest rate contracts 13 — — — 13 Total derivative instruments 13 16,382 4 (11,210 ) 5,189 Other — 395 — — 395 Total assets carried at fair value $ 1,232 $ 60,282 $ 1,288 $ (11,210 ) $ 51,592 Liabilities: Accrued expenses and other liabilities: Derivative instruments: Foreign exchange contracts — 16,518 4 (11,564 ) 4,958 Interest rate contracts — 71 — — 71 Other derivative contracts — 214 — — 214 Total derivative instruments — 16,803 4 (11,564 ) 5,243 Total liabilities carried at fair value $ — $ 16,803 $ 4 $ (11,564 ) $ 5,243 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between us and the counterparty. Netting also reflects asset and liability reductions of $987 million and $1,341 million , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of December 31, 2018 , the fair value of other non-U.S. debt securities included $1,295 million of covered bonds and $1,331 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 Collateralized loan obligations — 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 us 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 years ended December 31, 2018 and 2017 , respectively. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the years ended December 31, 2018 and 2017 , transfers into level 3 were mainly related to certain CMO, MBS and ABS, including non-U.S. debt securities, for which fair value was measured using information obtained from third-party sources, including non-binding broker/dealer quotes. During the years ended December 31, 2018 and 2017 , transfers out of level 3 were mainly related to certain CMO, 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 Year Ended December 31, 2018 Fair Value as of Total Realized and Purchases Sales Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value as of December 31, 2018 (1) Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of December 31, 2018 (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: AFS Investment securities: Asset-backed securities: Collateralized loan obligations $ 1,358 $ 4 $ (7 ) $ 351 $ (636 ) $ (268 ) $ — $ (209 ) $ 593 Total asset-backed securities 1,358 4 (7 ) 351 (636 ) (268 ) — (209 ) 593 Non-U.S. debt securities: Mortgage-backed securities 119 — — — — — — (119 ) — Asset-backed securities 402 — (4 ) 495 (310 ) (66 ) 114 — 631 Other 204 — — 13 (59 ) (36 ) — (64 ) 58 Total non-U.S. debt securities 725 — (4 ) 508 (369 ) (102 ) 114 (183 ) 689 State and political subdivisions 43 — — — (37 ) (1 ) — (5 ) — Collateralized mortgage obligations — — — — — (6 ) 8 — 2 Total AFS investment securities 2,126 4 (11 ) 859 (1,042 ) (377 ) 122 (397 ) 1,284 Derivative instruments: Foreign exchange contracts 1 (3 ) — 6 — — — — 4 $ (3 ) Total derivative instruments 1 (3 ) — 6 — — — — 4 (3 ) Total assets carried at fair value $ 2,127 $ 1 $ (11 ) $ 865 $ (1,042 ) $ (377 ) $ 122 $ (397 ) $ 1,288 $ (3 ) (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 foreign exchange trading services. Fair Value Measurements Using Significant Unobservable Inputs Year Ended December 31, 2017 Fair Value as of December 31, 2016 Total Realized and Purchases Sales Settlements Transfers Transfers Fair Value as of December 31, 2017 (1) Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of December 31, 2017 (In millions) Recorded (1) Recorded (1) Assets: AFS Investment securities: U.S. Treasury and federal agencies: Mortgage-backed securities $ — $ — $ — $ — $ — $ — $ 25 $ (25 ) $ — Asset-backed securities: Student loans 97 — 1 200 — — — (298 ) — Other 905 3 — 1,035 (240 ) (620 ) 275 — 1,358 Total asset-backed securities 1,002 3 1 1,235 (240 ) (620 ) 275 (298 ) 1,358 Non-U.S. debt securities: Mortgage-backed securities — — (2 ) 119 — 2 — — 119 Asset-backed securities 32 1 — 370 (10 ) (11 ) 67 (47 ) 402 Other 248 — 1 5 (81 ) 31 — — 204 Total non-U.S. debt securities 280 1 (1 ) 494 (91 ) 22 67 (47 ) 725 State and political subdivisions 39 — 2 — — (3 ) 5 — 43 Collateralized mortgage obligations 16 — (1 ) 24 — — — (39 ) — Other U.S. debt securities — — — 19 (19 ) — — — — Total AFS investment securities 1,337 4 1 1,772 (350 ) (601 ) 372 (409 ) 2,126 Other assets: Derivative instruments: Foreign exchange contracts 8 (7 ) — 4 — (4 ) — — 1 $ (3 ) Total derivative instruments 8 (7 ) — 4 — (4 ) — — 1 (3 ) Total assets carried at fair value $ 1,345 $ (3 ) $ 1 $ 1,776 $ (350 ) $ (605 ) $ 372 $ (409 ) $ 2,127 $ (3 ) (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 foreign exchange 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/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 December 31, 2018 As of December 31, 2017 Valuation Technique Significant Unobservable Input (1) As of December 31, 2018 As of December 31, 2017 Significant unobservable inputs readily available to State Street: Assets: Derivative Instruments, foreign exchange contracts $ 4 $ 1 Option model Volatility 11.4 % 7.2 % Total $ 4 $ 1 Liabilities: Derivative instruments, foreign exchange contracts $ 4 $ 1 Option model Volatility 11.4 % 7.2 % Total $ 4 $ 1 (1) Significant changes in these unobservable inputs may result in significant changes in fair value measurement of the derivative instrument. Financial Instruments Not Carried at Fair Value 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. Disclosure of fair value estimates is not required by U.S. GAAP for certain items, such as lease financing, equity-method investments, obligations for pension and other post-retirement plans, premises and equipment, other intangible assets and income-tax assets and liabilities. Accordingly, aggregate fair-value estimates presented do not purport to represent, and should not be considered representative of, our underlying “market” or franchise value. In addition, because of potential differences in methodologies and assumptions used to estimate fair values, our estimates of fair value should not be compared to those of other financial institutions. We use the following methods to estimate the fair values of our financial instruments: • For financial instruments that have quoted market prices, those quoted prices are used to estimate fair value; • For financial instruments that have no defined maturity, have a remaining maturity of 180 days or less, or reprice frequently to a market rate, we assume that the fair value of these instruments approximates their reported value, after taking into consideration any applicable credit risk; and • For financial instruments for which no quoted market prices are available, fair value is estimated using information obtained from independent third parties, or by discounting the expected cash flows using an estimated current market interest rate for the financial instrument. The generally short duration of certain of our assets and liabilities results in a significant number of financial instruments for which fair value equals or closely approximates the amount recorded in our consolidated statement of condition. These financial instruments are reported in the following captions in our consolidated statement of condition: cash and due from banks; interest-bearing deposits with banks; securities purchased under resale agreements; accrued interest and fees receivable; deposits; securities sold under repurchase agreements; and other short-term borrowings. In addition, due to the relatively short duration of certain of our loans, we consider fair value for these loans to approximate their reported value. The fair value of other types of loans, such as senior secured bank loans, commercial real estate loans, purchased receivables and municipal loans is estimated using information obtained from independent third parties or by discounting expected future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings for the same remaining maturities. Commitments to lend have no reported value because their terms are at prevailing market rates. 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) December 31, 2018 Financial Assets: Cash and due from banks $ 3,597 $ 3,597 $ 3,597 $ — $ — Interest-bearing deposits with banks 73,040 73,040 — 73,040 — Securities purchased under resale agreements 4,679 4,679 — 4,679 — Investment securities held-to-maturity 41,914 41,351 14,541 26,688 122 Net loans (excluding leases) (1) 25,722 25,561 — 24,648 913 Other (2) 8,500 8,500 — 8,500 — Financial Liabilities: Deposits: Non-interest-bearing $ 44,804 $ 44,804 $ — $ 44,804 $ — Interest-bearing - U.S. 66,235 66,235 — 66,235 — Interest-bearing - non-U.S. 69,321 69,321 — 69,321 — Securities sold under repurchase agreements 1,082 1,082 — 1,082 — Other short-term borrowings 3,092 3,092 — 3,092 — Long-term debt 11,093 11,048 — 10,865 183 Other (2) 8,500 8,500 — 8,500 — (1) Includes $10 million of loans classified as held-for-sale that were measured at fair value on a non-recurring basis as of December 31, 2018 . (2) Represents a portion of underlying client assets related to our enhanced custody business, which 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 | 12 Months Ended |
Dec. 31, 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 in 2018, 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 foreign exchange 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: December 31, 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 $ 1,035 $ 4 $ — $ 1,039 $ 222 $ 2 $ 1 $ 223 Mortgage-backed securities 16,112 37 181 15,968 10,975 26 129 10,872 Total U.S. Treasury and federal agencies 17,147 41 181 17,007 11,197 28 130 11,095 Asset-backed securities: Student loans (1) 538 4 1 541 3,325 37 4 3,358 Credit cards 609 — 26 583 1,565 2 25 1,542 Collateralized loan obligations 594 1 2 593 1,440 7 — 1,447 Total asset-backed securities 1,741 5 29 1,717 6,330 46 29 6,347 Non-U.S. debt securities: Mortgage-backed securities 1,687 — 5 1,682 6,664 36 5 6,695 Asset-backed securities 1,580 — 6 1,574 2,942 5 — 2,947 Government securities 12,816 22 45 12,793 10,754 16 49 10,721 Other (2) 6,600 18 16 6,602 6,076 38 6 6,108 Total non-U.S. debt securities 22,683 40 72 22,651 26,436 95 60 26,471 State and political subdivisions (3) 1,905 20 7 1,918 8,929 245 23 9,151 Collateralized mortgage obligations 200 — 3 197 1,060 3 9 1,054 Other U.S. debt securities 1,683 1 26 1,658 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 $ 45,359 $ 107 $ 318 $ 45,148 $ 56,952 $ 437 $ 268 $ 57,121 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 14,794 $ — $ 199 $ 14,595 $ 17,028 $ — $ 143 $ 16,885 Mortgage-backed securities 21,647 24 518 21,153 16,651 22 225 16,448 Total U.S. Treasury and federal agencies 36,441 24 717 35,748 33,679 22 368 33,333 Asset-backed securities: Student loans (1) 3,191 35 10 3,216 3,047 32 9 3,070 Credit cards 193 — — 193 798 2 — 800 Other 1 — — 1 1 — — 1 Total asset-backed securities 3,385 35 10 3,410 3,846 34 9 3,871 Non-U.S. debt securities: Mortgage-backed securities 638 77 9 706 939 82 6 1,015 Asset-backed securities 223 — — 223 263 1 — 264 Government securities 358 1 — 359 474 2 — 476 Other 46 — — 46 48 — — 48 Total non-U.S. debt securities 1,265 78 9 1,334 1,724 85 6 1,803 Collateralized mortgage obligations 823 38 2 859 1,209 45 6 1,248 Total $ 41,914 $ 175 $ 738 $ 41,351 $ 40,458 $ 186 $ 389 $ 40,255 (1) Primarily comprised 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 December 31, 2018 and December 31, 2017 , the fair value of other non-U.S. debt securities included $1,295 million and $3,537 million , respectively, of covered bonds and $1,331 million and $1,885 million , respectively, of corporate bonds. (3) As of December 31, 2018 and December 31, 2017 , the fair value of state and political subdivisions includes securities in trusts of $1,052 million and $1,247 million , respectively. Additional information about these trusts is provided in Note 14 . (4) As described in Note 1 to the consolidated financial statements in this Form 10-K, upon adoption of ASU 2016-01 in 2018, we reclassified money-market funds and equity securities classified as AFS to held at fair value through profit and loss in other assets. Aggregate investment securities with carrying values of approximately $39 billion and $48 billion as of December 31, 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 2018 , $1.2 billion of HTM securities, primarily consisting of MBS and CMBS, were transferred to AFS at book value and sold at a pre-tax loss of approximately $36 million , due to our election to make a one-time transfer of securities relating to the adoption of ASU 2017-12. Additional information on this new standard is provided in Note 1 . In 2018 , we sold approximately $26 billion of AFS securities, primarily ABS and municipal bonds, resulting in a net pre-tax gain of approximately $9 million . In 2017 , we sold $12.2 billion of AFS securities, primarily agency MBS and U.S. treasury securities in our investment portfolio, to position for the then existing interest rate environment resulting in a pre-tax loss of $39 million . In 2018 and 2017 , $2.1 billion and $496 million , respectively, of agency MBS, previously classified as AFS, were transferred to HTM. This transfer reflects our intent to hold these securities until their maturity. These securities were transferred at fair value, which included a net unrealized loss of $53 million and $2.8 million as of December 31, 2018 and 2017 , respectively, within accumulated other comprehensive loss which will be accreted into interest income over the remaining life of the transferred security (ranging from approximately 10 to 42 years). 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 December 31, 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 $ 5,058 $ 21 $ 5,089 $ 160 $ 10,147 $ 181 Total U.S. Treasury and federal agencies 5,058 21 5,089 160 10,147 181 Asset-backed securities: Student loans 106 — 218 1 324 1 Credit cards 90 — 493 26 583 26 Collateralized loan obligations 548 2 — — 548 2 Total asset-backed securities 744 2 711 27 1,455 29 Non-U.S. debt securities: Mortgage-backed securities 1,407 4 118 1 1,525 5 Asset-backed securities 1,479 6 — — 1,479 6 Government securities 5,478 45 — — 5,478 45 Other 2,167 12 226 4 2,393 16 Total non-U.S. debt securities 10,531 67 344 5 10,875 72 State and political subdivisions 365 3 244 4 609 7 Collateralized mortgage obligations 181 3 14 — 195 3 Other U.S. debt securities 861 14 484 12 1,345 26 Total $ 17,740 $ 110 $ 6,886 $ 208 $ 24,626 $ 318 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 2,192 $ 45 $ 12,403 $ 154 $ 14,595 $ 199 Mortgage-backed securities 6,502 103 10,648 415 17,150 518 Total U.S. Treasury and federal agencies 8,694 148 23,051 569 31,745 717 Asset-backed securities: Student loans 481 4 536 6 1,017 10 Total asset-backed securities 481 4 536 6 1,017 10 Non-U.S. debt securities: Mortgage-backed securities 184 2 119 7 303 9 Total non-U.S. debt securities 184 2 119 7 303 9 Collateralized mortgage obligations 102 1 51 1 153 2 Total $ 9,461 $ 155 $ 23,757 $ 583 $ 33,218 $ 738 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 December 31, 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. December 31, 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 $ 224 $ 815 $ — $ — $ 1,039 Mortgage-backed securities 101 802 1,884 13,181 15,968 Total U.S. Treasury and federal agencies 325 1,617 1,884 13,181 17,007 Asset-backed securities: Student loans 57 164 250 70 541 Credit cards 199 294 90 — 583 Collateralized loan obligations — 402 171 20 593 Total asset-backed securities 256 860 511 90 1,717 Non-U.S. debt securities: Mortgage-backed securities 139 769 176 598 1,682 Asset-backed securities 136 698 581 159 1,574 Government securities 3,439 6,409 2,945 — 12,793 Other 1,071 4,575 937 19 6,602 Total non-U.S. debt securities 4,785 12,451 4,639 776 22,651 State and political subdivisions 235 776 446 461 1,918 Collateralized mortgage obligations 2 — — 195 197 Other U.S. debt securities 141 1,219 298 — 1,658 Total $ 5,744 $ 16,923 $ 7,778 $ 14,703 $ 45,148 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 4,002 $ 10,737 $ 12 $ 43 $ 14,794 Mortgage-backed securities 33 127 1,697 19,790 21,647 Total U.S. Treasury and federal agencies 4,035 10,864 1,709 19,833 36,441 Asset-backed securities: Student loans 7 291 267 2,626 3,191 Credit cards 58 135 — — 193 Other — — — 1 1 Total asset-backed securities 65 426 267 2,627 3,385 Non-U.S. debt securities: Mortgage-backed securities 160 42 7 429 638 Asset-backed securities 96 127 — — 223 Government securities 243 115 — — 358 Other 46 — — — 46 Total non-U.S. debt securities 545 284 7 429 1,265 Collateralized mortgage obligations 1 318 15 489 823 Total $ 4,646 $ 11,892 $ 1,998 $ 23,378 $ 41,914 The following tables present gross realized gains and losses from sales of AFS investment securities, and the components of net impairment losses included in net gains and losses related to investment securities for the periods indicated. Years Ended December 31, (In millions) 2018 2017 2016 Gross realized gains from sales of AFS investment securities $ 205 $ 74 $ 15 Gross realized losses from sales of AFS investment securities (196 ) (113 ) (5 ) Net impairment losses: Gross losses from OTTI (3 ) — (2 ) Losses reclassified (from) to other comprehensive income — — (1 ) Net impairment losses (1) (3 ) — (3 ) Gains (losses) related to investment securities, net $ 6 $ (39 ) $ 7 (1) Net impairment losses, recognized in our consolidated statement of income, were composed of the following: Impairment associated with expected credit losses $ — $ — $ (1 ) Impairment associated with adverse changes in timing of expected future cash flows (3 ) — (2 ) Net impairment losses $ (3 ) $ — $ (3 ) The following table presents a roll-forward with respect to net impairment losses that have been recognized in income for the periods indicated. Years Ended December 31, (In millions) 2018 2017 2016 Balance, beginning of period $ 77 $ 79 $ 105 Additions (1) : OTTI recognized 3 — 2 Deductions (2) : Realized losses on securities sold or matured (2 ) (2 ) (28 ) Balance, end of period $ 78 $ 77 $ 79 (1) Additions represent securities with a first time credit impairment realized or when a subsequent credit impairment has occurred. (2) Deductions represent impairments on securities that have been sold or matured, are required to be sold, or for which management intends to sell. 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. Impairment exists when the current fair value of an individual security is below its amortized cost basis. For AFS and HTM debt securities, impairment is recorded in our consolidated statement of income when management intends to sell (or may be required to sell) the securities before they recover in value, or when management expects the present value of cash flows expected to be collected from the securities to be less than the amortized cost of the impaired security (a credit loss). Our review of impaired securities generally includes: • the identification and evaluation of securities that have indications of potential OTTI, such as issuer-specific concerns, including deteriorating financial condition or bankruptcy; • the analysis of expected future cash flows of securities, based on quantitative and qualitative factors; • the analysis of the collectability of those future cash flows, including information about past events, current conditions, and reasonable and supportable forecasts; • the analysis of the underlying collateral for MBS and ABS; • the analysis of individual impaired securities, including consideration of the length of time the security has been in an unrealized loss position, the anticipated recovery period, and the magnitude of the overall price decline; • evaluation of factors or triggers that could cause individual securities to be deemed OTTI and those that would not support OTTI; and • documentation of the results of these analyses. Factors considered in determining whether impairment is other than temporary include: • certain macroeconomic drivers; • certain industry-specific drivers; • the length of time the security has been impaired; • the severity of the impairment; • the cause of the impairment and the financial condition and near-term prospects of the issuer; • activity in the market with respect to the issuer's securities, which may indicate adverse credit conditions; and • our intention not to sell, and the likelihood that we will not be required to sell, the security for a period of time sufficient to allow for its recovery in value. Substantially all of our investment securities portfolio is composed of debt securities. A critical component of our assessment of OTTI of these debt securities is the identification of credit-impaired securities for which management does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security. Debt securities that are not deemed to be credit-impaired are subject to additional management analysis to assess whether management intends to sell, or, more likely than not, would be required to sell, the security before the expected recovery of its amortized cost basis. The following provides a description of our process for the identification and assessment of OTTI, as well as information about OTTI recorded in 2018 , 2017 and 2016 and changes in period-end unrealized losses, for major security types as of December 31, 2018 . U.S. Agency Securities Our portfolio of U.S. agency direct obligations and MBS receives the implicit or explicit backing of the U.S. government in conjunction with specified financial support of the U.S. Treasury. We recorded no OTTI on these securities in 2018 , 2017 or 2016 . The overall increase in unrealized losses on these securities as of December 31, 2018 was primarily attributable to interest rate increases in 2018 and to an increase in total U.S. agency securities during 2018. Asset-Backed Securities - Student Loans Asset-backed securities collateralized by student loans are primarily composed of securities collateralized by FFELP loans. FFELP loans benefit from a federal government guarantee of at least 97% of defaulted principal and accrued interest, with additional credit support provided to our securities in the form of over-collateralization, subordination and excess spread, which collectively total in excess of 100%. Accordingly, the vast majority of FFELP loan-backed securities are protected from traditional consumer credit risk. We recorded no OTTI on these securities in 2018 , 2017 or 2016 . Our assessment of OTTI of these securities considers, among many other factors, the strength of the U.S. government guarantee, the performance of the underlying collateral, and the remaining average term of the FFELP loan-backed securities portfolio, which was approximately 5.0 years as of December 31, 2018 . In general, the rating agencies have largely completed their downgrade review of FFELP loan-backed securities due to potential extension of student loan repayments beyond the securities’ legal final maturity dates. At this time, we do not expect a significant number of additional downgrades related to potential legal final maturity breaches. Based on the limited price impact on the overall FFELP loan-backed securities portfolio and recent remedial actions by issuers, including amending loan-backed securities’ maturity dates and exercising cleanup calls, the credit quality of the FFELP loan-backed securities portfolio remains stable and we, as a bondholder, remain protected from principal loss as a result of the aforementioned federal government guarantee and over-collateralization. Downside risks remain should remedial actions fail to address the extension risks. Our total exposure to private student loan-backed securities was less than $4 million as of December 31, 2018 . Our assessment of OTTI of private student loan-backed securities considers, among other factors, the impact of high unemployment rates on the collateral performance of private student loans. We recorded no OTTI on these securities in 2018 , 2017 or 2016 . Non-U.S. Mortgage- and Asset-Backed Securities Non-U.S. mortgage- and asset-backed securities are primarily composed of U.K., Australian and Dutch securities collateralized by residential mortgages and German and U.K. securities collateralized by automobile loans and leases. Our assessment of impairment with respect to these securities considers the location of the underlying collateral, collateral enhancement and structural features, expected credit losses under base-case and stressed conditions and the macroeconomic outlook for the country in which the collateral is located, including housing prices and unemployment. Where appropriate, any potential loss after consideration of the above-referenced factors is further evaluated to determine whether any OTTI exists. We recorded OTTI of $3 million , less than $1 million and $2 million in 2018 , 2017 and 2016 , respectively, on non-U.S. residential MBS, which resulted from adverse changes in the timing of expected future cash flows from the securities. Our assessment of OTTI of these securities takes into account government intervention in the corresponding mortgage markets and assumes a baseline macroeconomic environment for this region, factoring in slower economic growth and continued government austerity measures. In addition, we perform stress testing and sensitivity analysis in order to understand the impact of more severe assumptions on potential OTTI. State and Political Subdivisions and Other U.S. Debt Securities Our municipal securities portfolio primarily includes securities issued by U.S. states and their municipalities. A portion of this portfolio is held in connection with our tax-exempt investment program, more fully described in Note 14. Our portfolio of other U.S. debt securities is primarily composed of securities issued by U.S. corporations. Our assessment of OTTI of these portfolios considers, among other factors, adverse conditions specifically related to the geographic area or financial condition of the issuer; the structure of the security, including collateral, if any, and payment schedule; rating agency changes to the security's credit rating; the volatility of the fair value changes; and our intent and ability to hold the security until its recovery in value. If the impairment of the security is credit-related, we estimate the future cash flows from the security, tailored to the security and considering the above-described factors, and any resulting impairment deemed to be other-than-temporary is recorded in our consolidated statement of income. We recorded no OTTI on these securities in 2018 , 2017 or 2016 . U.S. Non-Agency Residential Mortgage-Backed Securities We assess OTTI of our portfolio of U.S. non-agency residential mortgage-backed securities using cash flow models, tailored for each security, that estimate the future cash flows from the underlying mortgages, using the security-specific collateral and transaction structure. Estimates of future cash flows are subject to management judgment. The future cash flows and performance of our portfolio of U.S. non-agency residential mortgage-backed securities are a function of a number of factors, including, but not limited to, the condition of the U.S. economy, the condition of the U.S. residential mortgage markets, and the level of loan defaults, prepayments and loss severities. Management's estimates of future losses for each security also consider the underwriting and historical performance of each specific security, the underlying collateral type, vintage, borrower profile, third-party guarantees, current levels of subordination, geography and other factors. We recorded no OTTI on these securities in 2018 , 2017 or 2016 . U.S. Non-Agency Commercial Mortgage-Backed Securities With respect to our portfolio of U.S. non-agency commercial mortgage-backed securities, OTTI is assessed by considering a number of factors, including, but not limited to, the condition of the U.S. economy and the condition of the U.S. commercial real estate market, as well as capitalization rates. Management estimates of future losses for each security also consider the underlying collateral type, property location, vintage, debt-service coverage ratios, expected property income, servicer advances and estimated property values, as well as current levels of subordination. We recorded no OTTI on these securities in 2018 and 2017 . In 2016 we recorded $1 million of OTTI on these securities, all associated with expected credit losses. The estimates, assumptions and other risk factors utilized in our assessment of impairment as described above are used by management to identify securities which are subject to further analysis of potential credit losses. Additional analyses are performed using more stressful assumptions to further evaluate the sensitivity of losses relative to the above-described factors. However, since the assumptions are based on the unique characteristics of each security, management uses a range of estimates for prepayment speeds, default, and loss severity forecasts that reflect the collateral profile of the securities within each asset class. In addition, in measuring expected credit losses, the individual characteristics of each security are examined to determine whether any additional factors would increase or mitigate the expected loss. Once losses are determined, the timing of the loss will also affect the ultimate OTTI, since the loss is ultimately subject to a discount commensurate with the purchase yield of the security. 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 $1,056 million related to 1,129 securities as of December 31, 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 | 12 Months Ended |
Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Leases | Loans and Leases Loans are generally recorded at their principal amount outstanding, net of the allowance for loan losses, unearned income, and any net unamortized deferred loan origination fees. Acquired loans have been initially recorded at fair value based on management's expectation with respect to future principal and interest collection as of the date of acquisition. Acquired loans are held for investment, and as such their initial fair value is not adjusted subsequent to acquisition. Loans that are classified as held-for-sale are measured at lower of cost or fair value on an individual basis. Interest income related to loans is recognized in our consolidated statement of income using the interest method, or on a basis approximating a level rate of return over the term of the loan. Fees received for providing loan commitments and letters of credit that we anticipate will result in loans typically are deferred and amortized to interest income over the term of the related loan, beginning with the initial borrowing. Fees on commitments and letters of credit are amortized to processing fees and other revenue over the commitment period when funding is not known or expected. As of December 31, 2018 , we had no net investment in leveraged lease financing compared to $479 million as of December 31, 2017 . The following table presents our recorded investment in loans and leases, by segment, as of the dates indicated: (In millions) December 31, 2018 December 31, 2017 Domestic: Commercial and financial: Loans to investment funds $ 15,050 $ 13,618 Senior secured bank loans 3,490 2,923 Loans to municipalities 902 2,105 Other 37 50 Commercial real estate 874 98 Lease financing (1) — 267 Total domestic 20,353 19,061 Non-U.S.: Commercial and financial: Loans to investment funds 4,505 3,213 Senior secured bank loans 931 624 Lease financing (1) — 396 Total non-U.S. 5,436 4,233 Total loans and leases 25,789 23,294 Allowance for loan and lease losses (67 ) (54 ) Loans and leases, net of allowance $ 25,722 $ 23,240 (1) Our leveraged lease portfolio was entirely sold off as of December 31, 2018. 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. 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 December 31, 2018 and December 31, 2017 , the loans pledged as collateral totaled $6.5 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: December 31, 2018 Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases (In millions) Investment grade (1) $ 19,599 $ 874 $ — $ 20,473 Speculative (2) 5,308 — — 5,308 Substandard (3) 8 — — 8 Total $ 24,915 $ 874 $ — $ 25,789 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 (4) 29 — — 29 Total $ 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 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) Substandard loans and leases consist of counterparties with well-defined weaknesses that jeopardize repayment with the possibility we will sustain some loss. (4) Special mention loans consist of counterparties with potential weaknesses that, if uncorrected, may result in deterioration of repayment prospects. We use an internal risk-rating system to assess our risk of credit loss for each loan or lease. This risk-rating process incorporates the use of risk-rating tools in conjunction with management judgment. Qualitative and quantitative inputs are captured in a systematic manner, and following a formal review and approval process, an internal credit rating based on our credit scale is assigned. In assessing the risk rating assigned to each individual loan or lease, among the factors considered are the borrower's debt capacity, collateral coverage, payment history and delinquency experience, financial flexibility and earnings strength, the expected amounts and source of repayment, the level and nature of contingencies, if any, and the industry and geography in which the borrower operates. These factors are based on an evaluation of historical and current information, and involve subjective assessment and interpretation. Credit counterparties are evaluated and risk-rated on an individual basis at least annually. Management considers the ratings to be current as of December 31, 2018 . We review all loans individually for indicators of impairment. Loans where such indicators exist are evaluated individually for impairment at least quarterly. For those loans where no such indicators are identified, the loans are collectively evaluated for impairment. The following table presents our recorded investment in loans and leases, disaggregated based on our impairment methodology, as of the dates indicated: December 31, 2018 December 31, 2017 (In millions) Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases Loans and leases: Individually evaluated for impairment (1) $ 8 $ — $ — $ 8 $ — $ — $ — $ — Collectively evaluated for impairment 24,907 874 — 25,781 22,533 98 663 23,294 Total $ 24,915 $ 874 $ — $ 25,789 $ 22,533 $ 98 $ 663 $ 23,294 (1) As of December 31, 2018 , we had one loan for $8 million in the commercial and financial segment that was individually evaluated for impairment and deemed to be impaired. This loan was subsequently paid in full in January 2019. As of December 31, 2017 , there were no impaired loans. 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 years ended December 31, 2018 and 2017 . We generally place loans on non-accrual status once principal or interest payments are 90 days contractually past due, or earlier if management determines that full collection is not probable. Loans 90 days past due, but considered both well-secured and in the process of collection, may be excluded from non-accrual status. When we place a loan on non-accrual status, the accrual of interest is discontinued and previously recorded but unpaid interest is reversed and generally charged against interest income. For loans on non-accrual status, income is recognized on a cash basis after recovery of principal, if and when interest payments are received. Loans may be removed from non-accrual status when repayment is reasonably assured and performance under the terms of the loan has been demonstrated. As of December 31, 2018 and December 31, 2017 , we had no loans or leases on non-accrual status and no loans or leases contractually past due. Allowance For Loan And Lease Losses The allowance for loan and lease losses, recorded as a reduction of loans and leases in our consolidated statement of condition, represents management’s estimate of incurred credit losses in our loan and lease portfolio as of the balance sheet date. The allowance is evaluated on a regular basis by management. Factors considered in evaluating the appropriate level of the allowance for each segment of our loan-and-lease portfolio include loss experience, the probability of default reflected in our internal risk rating of the counterparty's creditworthiness, current economic conditions and adverse situations that may affect the borrower’s ability to repay, the estimated value of the underlying collateral, if any, the performance of individual credits in relation to contract terms, and other relevant factors. Loans and leases are charged off to the allowance for loan and lease losses in the reporting period in which either an event occurs that confirms the existence of a loss on a loan or lease, including a sale of a loan below its carrying value, or a portion of a loan or lease is determined to be uncollectible. In addition, any impaired loan or lease that is determined to be collateral-dependent is reduced to an amount equal to the fair value of the collateral less costs to sell. A loan or lease is identified as collateral-dependent when management determines that it is probable that the underlying collateral will be the sole source of repayment. Recoveries are recorded on a cash basis as adjustments to the allowance. The following table presents activity in the allowance for loan and lease losses for the periods indicated: Years Ended December 31, (In millions) 2018 2017 2016 Allowance for loan and lease losses: Beginning balance $ 54 $ 53 $ 46 Provision for loan and lease losses (1) 15 2 10 Charge-offs (1) (2 ) (1 ) (3 ) Ending balance $ 67 $ 54 $ 53 (1) The provisions and charge-offs for loans and leases were primarily attributable to exposure to senior secured loans to non-investment grade borrowers, purchased in connection with our 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. Off-Balance Sheet Credit Exposures The reserve for off-balance sheet credit exposures, recorded in accrued expenses and other liabilities in our consolidated statement of condition, represents management’s estimate of probable credit losses primarily in outstanding letters and lines of credit and other credit-enhancement facilities provided to our clients and outstanding as of the balance sheet date. The reserve is evaluated on a regular basis by management. Factors considered in evaluating the appropriate level of this reserve are similar to those considered with respect to the allowance for loan and lease losses. Provisions to maintain the reserve at a level considered by us to be appropriate to absorb estimated incurred credit losses in outstanding facilities are recorded in other expenses in our consolidated statement of income. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net tangible and other intangible assets acquired. Other intangible assets represent purchased long-lived intangible assets, primarily client relationships, that can be distinguished from goodwill because of contractual rights or because the asset can be exchanged on its own or in combination with a related contract, asset or liability. Goodwill is not amortized, but is subject to at least annual evaluation for impairment. Other intangible assets, which are also subject to annual evaluation for impairment, are mainly related to client relationships, which are amortized on a straight-line basis over periods ranging from five to twenty years , technology assets, which are amortized on a straight-line basis over periods ranging from three to ten years , and core deposit intangible assets, which are amortized on a straight-line basis over periods ranging from sixteen to twenty-two years , with such amortization recorded in other expenses in our consolidated statement of income. Impairment of goodwill is deemed to exist if the carrying value of a reporting unit, including its allocation of goodwill and other intangible assets, exceeds its estimated fair value. Impairment of other intangible assets is deemed to exist if the balance of the other intangible asset exceeds the cumulative expected net cash inflows related to the asset over its remaining estimated useful life. If these reviews determine that goodwill or other intangible assets are impaired, the value of the goodwill or the other intangible asset is written down through a charge to other expenses in our consolidated statement of income. There were no impairments to goodwill or other intangible assets in 2018. The following table presents changes in the carrying amount of goodwill during the periods indicated: (In millions) Investment Servicing (1) 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 Acquisitions (1) 1,512 — 1,512 Foreign currency translation (84 ) (4 ) (88 ) Ending balance December 31, 2018 $ 7,180 $ 266 $ 7,446 (1) Investment Servicing includes our acquisition of Charles River Development on October 1, 2018, which is described in Note 1. The following table presents changes in the net carrying amount of other intangible assets during the periods indicated: (In millions) Investment Servicing (1) 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 71 1 72 Ending balance December 31, 2017 1,432 181 1,613 Acquisitions (1) 1,007 — 1,007 Amortization (196 ) (30 ) (226 ) Foreign currency translation (25 ) — (25 ) Ending balance December 31, 2018 $ 2,218 $ 151 $ 2,369 (1) Investment Servicing includes our acquisition of Charles River Development on October 1, 2018, which is described in Note 1. 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: December 31, 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 $ 3,262 $ (1,605 ) $ 1,657 $ 2,669 $ (1,470 ) $ 1,199 Technology 389 (49 ) 340 47 (40 ) 7 Core deposits 676 (350 ) 326 686 (320 ) 366 Other 103 (57 ) 46 95 (54 ) 41 Total $ 4,430 $ (2,061 ) $ 2,369 $ 3,497 $ (1,884 ) $ 1,613 Amortization expense related to other intangible assets was $226 million , $214 million and $207 million in 2018 , 2017 and 2016 , respectively. Expected future amortization expense for other intangible assets recorded as of December 31, 2018 is as follows: (In millions) Future Amortization Years Ended December 31, 2019 $ 245 2020 243 2021 236 2022 233 2023 232 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets [Abstract] | |
Other Assets | Other Assets The following table presents the components of other assets as of the dates indicated: December 31, (In millions) 2018 2017 Securities borrowed (1) $ 19,575 $ 19,404 Derivative instruments, net 5,189 4,013 Bank-owned life insurance 3,323 3,242 Investments in joint ventures and other unconsolidated entities (2) 2,882 2,226 Collateral, net 1,354 473 Receivable for securities settlement 531 188 Prepaid expenses 493 364 Accounts receivable 343 348 Income taxes receivable 129 97 Deferred tax assets, net of valuation allowance (3) 113 113 Deposits with clearing organizations 58 120 Other 414 397 Total $ 34,404 $ 30,985 (1) Refer to Note 11 , 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. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits As of December 31, 2018 , we had $46.40 billion of time deposits outstanding, of which $4.52 billion were wholesale CDs, $41.57 billion were derived from client deposits (payable on demand to such clients) and held in a time deposit established by us as the agent and $314 million were non-U.S. and all of which are scheduled to mature in 2019. As of December 31, 2017 , we had $39.73 billion of time deposits outstanding, of which $4.75 billion were wholesale CDs, $34.73 billion were derived from client deposits (payable on demand to such clients) and held in a time deposit established by us as the agent and $252 million were non-U.S. As of December 31, 2018 and 2017 , all U.S. and non-U.S. time deposits were in amounts of $100,000 or more. Demand deposit overdrafts of $5.44 billion and $3.24 billion were included as loan balances at December 31, 2018 and 2017 , respectively. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings Our short-term borrowings include securities sold under repurchase agreements, short-term borrowings associated with our tax-exempt investment program (more fully described in Note 14 ), and other short-term borrowings. Collectively, short-term borrowings had weighted-average interest rates of 0.88% and 0.25% in 2018 and 2017 , respectively. The following table presents information with respect to the amounts outstanding and weighted-average interest rates of the primary components of our short-term borrowings as of and for the years ended December 31 : 2018 2017 2016 2018 2017 2016 2018 2017 2016 (Dollars in millions) Securities Sold Under Repurchase Agreements Tax-Exempt Investment Program Other Balance as of December 31 $ 1,082 $ 2,842 $ 4,400 $ 931 $ 1,078 $ 1,158 $ 2,000 $ — $ — Maximum outstanding as of any month-end 3,441 4,302 5,572 1,078 1,158 1,726 2,000 — 29 Average outstanding during the year 2,048 3,683 4,113 1,023 1,127 1,512 nm 1 31 Weighted-average interest rate as of year-end 1.38 % .03 % .04 % 1.74 % 1.45 % .67 % 2.68 % .00 % .00 % Weighted-average interest rate during the year .62 .05 .02 1.46 .79 .36 nm .00 .17 nm Not meaningful Obligations to repurchase securities sold are recorded as a liability in our consolidated statement of condition. U.S. government securities with a fair value of $1.10 billion underlying the repurchase agreements remained in our investment securities portfolio as of December 31, 2018 . The following table presents information about these U.S. government securities and the carrying value of the related repurchase agreements, including accrued interest, as of December 31, 2018 . U.S. Government Securities Sold Repurchase Agreements (1) (In millions) Amortized Cost Fair Value Amortized Cost Overnight maturity $ 1,127 $ 1,100 $ 1,082 (1) Collateralized by investment securities. We maintain an agreement with a clearing organization that enables us to net all securities purchased under resale agreements and sold under repurchase agreements with counterparties that are also members of the clearing organization. As a result of this netting, the average balances of securities purchased under resale agreements and securities sold under repurchase agreements were reduced by $35.74 billion in 2018 compared to $31.15 billion in 2017 . State Street Bank currently maintains a line of credit of CAD 1.40 billion , or approximately $1.03 billion , as of December 31, 2018 , to support its Canadian securities processing operations. The line of credit has no stated termination date and is cancelable by either party with prior notice. As of December 31, 2018 and 2017 , there was no balance outstanding on this line of credit. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | Long-Term Debt (Dollars in millions) As of December 31, Issuance Date Maturity Date Coupon Rate Seniority Interest Due Dates 2018 2017 Parent Company And Non-Banking Subsidiary Issuances August 18, 2015 August 18, 2025 3.55 % Senior notes 2/18; 8/18 (1) $ 1,268 $ 1,287 August 18, 2015 August 18, 2020 2.55 % Senior notes 2/18; 8/18 1,177 1,184 November 19, 2013 November 20, 2023 3.7 % Senior notes 5/20; 11/20 (1) 1,006 1,021 December 15, 2014 December 16, 2024 3.3 % Senior notes 6/16; 12/16 (1) 979 993 May 15, 2013 May 15, 2023 (2) 3.1 % Subordinated notes 5/15; 11/15 (1) 972 981 April 30, 2007 June 15, 2047 Floating-rate Junior subordinated debentures 3/15; 6/15; 9/15; 12/15 794 793 May 15, 2017 May 15, 2023 2.653 % Fixed-to-floating rate senior notes 5/15; 11/15 (1) 734 740 March 7, 2011 March 7, 2021 4.375 % Senior notes 3/7; 9/7 (1) 731 734 May 19, 2016 May 19, 2021 1.95 % Senior notes 5/19; 11/19 (1) 725 724 May 19, 2016 May 19, 2026 2.65 % Senior notes 5/19; 11/19 (1) 698 706 December 3, 2018 December 3, 2029 4.141 % Fixed-to-floating rate senior notes 6/3; 12/3 (1) 513 — December 3, 2018 December 3, 2024 3.776 % Fixed-to-floating rate senior notes 6/3; 12/3 (1) 507 — August 18, 2015 August 18, 2020 Floating-rate Senior notes 2/18; 5/18; 8/18; 11/18 499 499 May 15, 1998 May 15, 2028 Floating-rate Junior subordinated debentures 2/15; 5/15; 8/15; 11/15 150 150 June 21, 1996 June 15, 2026 (3) 7.35 % Senior notes 6/15; 12/15 150 150 February 11, 2011 March 15, 2018 4.956 % Junior subordinated debentures 3/15; 9/15 — 502 May 15, 2013 May 15, 2018 1.35 % Senior notes 5/15; 11/15 — 499 Parent Company Long-term capital leases 190 250 State Street Bank issuances September 24, 2003 October 15, 2018 (2) 5.25 % Subordinated notes 4/15; 10/15 — 407 Total long-term debt $ 11,093 $ 11,620 (1) We have entered into interest rate swap agreements, recorded as fair value hedges, to modify our interest expense on these senior and subordinated notes from a fixed rate to a floating rate. As of December 31, 2018 and 2017 , the carrying value of long-term debt associated with these fair value hedges decreased $157 million and $87 million , respectively. Refer to Note 10 for additional information about fair value hedges. (2) The subordinated notes qualify for inclusion in tier 2 regulatory capital under current federal regulatory capital guidelines. (3) We may not redeem notes prior to their maturity. Parent Company As of December 31, 2018 and 2017 , long-term capital leases included $190 million and $244 million , respectively, related to our One Lincoln Street headquarters building and related underground parking garage. Refer to Note 20 for additional information. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 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 risks. These financial instruments consist of foreign exchange contracts such as forwards, futures and options contracts; interest rate contracts such as interest rate swaps (cross currency and single currency) and futures; and other derivative contracts. Derivatives instruments used for risk management purposes that are highly effective in offsetting the risk being hedged are generally designated as hedging instruments in hedge accounting relationships while others are economic hedges and not designated in hedge accounting relationships. Derivatives in hedge accounting relationships are disclosed according to the type of hedge, such as, fair value, cash flow, or net investment. Derivatives designated as hedging instruments in hedge accounting relationships are carried at fair value with change in fair value recognized in the consolidated statement of income or OCI, as appropriate. Derivatives not designated in hedge accounting relationships include those derivatives entered into to support client needs and derivatives used to manage interest rate or foreign currency risk associated with certain assets and liabilities. Such derivatives are carried at fair value with changes in fair value recognized in the consolidated statement of income. Derivatives Not Designated as Hedging Instruments We provide foreign exchange forward contracts and options in support of our client needs, and also act as a dealer in the currency markets. As part of our trading 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 and interest rate options, interest rate forward contracts, and interest rate futures. The entire change in the fair value of our non-hedging derivatives utilized in our trading activities are recorded in foreign exchange trading services revenue, and the entire change in fair value of our non-hedging derivatives utilized in our asset-and-liability management activities are recorded in net interest income. We enter into stable value wrap derivative contracts with unaffiliated stable value funds that allow a stable value fund to provide book value coverage to its participants. These derivatives contracts qualify as guarantees as described in Note 12 . We grant deferred cash awards to certain of our employees as part of our employee incentive compensation plans. We account for these awards as derivative financial instruments, as the underlying referenced shares are not equity instruments of ours. The fair value of these derivatives is referenced to the value of units in State Street-sponsored investment funds or funds sponsored by other unrelated entities. We re-measure these derivatives to fair value quarterly, and record the change in value in compensation and employee benefits expenses in our consolidated statement of income. Derivatives Designated as Hedging Instruments We adopted ASU 2017-12, in the fourth quarter of 2018, which better aligns hedge accounting with the economics of our risk management activities. Additional information on this new standard is provided in Note 1 . In connection with our asset-and-liability management activities, we use derivative financial instruments to manage our interest rate risk and foreign currency risk for certain assets and liabilities. At both the inception of the hedge and on an ongoing basis, we formally assess and document the effectiveness of a derivative designated in a hedging relationship and the likelihood that the derivative will be an effective hedge in future periods. We discontinue hedge accounting prospectively when we determine that the derivative is no longer highly effective in offsetting changes in fair value or cash flows of the underlying risk being hedged, the derivative expires, terminates or is sold, or management discontinues the hedge designation. The risk management objective of a highly effective hedging strategy that qualifies for hedge accounting must be formally documented. The hedge documentation includes the derivative hedging instrument, the asset or liability or forecasted transaction, type of risk being hedged and method for assessing hedge effectiveness of the derivative prospectively and retrospectively. We use quantitative methods including regression analysis and cumulative dollar offset method, comparing the change in the fair value of the derivative to the change in fair value or the cash flows of the hedged item. We may also utilize qualitative methods such as matching critical terms and evaluation of any changes in those critical terms. Effectiveness is assessed and documented quarterly and if determined that the derivative is not highly effective at hedging the designated risk hedge accounting is discontinued. Fair Value Hedges Derivatives designated as fair value hedges are utilized to mitigate the risk of changes in the fair values of recognized assets and liabilities, including long-term debt, AFS securities, and foreign currency investment securities. We use interest rate or foreign exchange contracts in this manner to manage our exposure to changes in the fair value of hedged items caused by changes in interest rates or foreign exchange rates. Changes in the fair value of the derivative and changes in fair value of the hedged item due to changes in the hedged risk are recognized in earnings in the same line item. As of January 1, 2018, we prospectively changed the presentation of both hedging instruments and hedged items designated as fair value hedges of interest rate risk from processing fees and other revenue to net interest income . If a hedge is terminated, all remaining adjustments to the carrying amount of the hedged item shall be amortized over a period that is consistent with the amortization of other discounts or premiums associated with the hedged item . Cash Flow Hedges Derivatives designated as cash flow hedges are utilized to offset the variability of cash flows of recognized assets or liabilities or forecasted transactions. 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. Additionally, 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. Changes in fair value of the derivatives designated as cash flow hedges are initially recorded in AOCI and then reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings and are presented in the same income statement line item as the earnings effect of the hedged item. If the hedge relationship is terminated, the change in fair value on the derivative recorded in AOCI is reclassified into earnings consistent with the timing of the hedged item. For hedge relationships that are discontinued because a forecasted transaction is not expected to occur according to the original hedge terms, any related derivative values recorded in AOCI are immediately recognized in earnings. As of December 31, 2018, the maximum maturity date of the underlying loans is approximately 4.9 years . Net Investment Hedges Derivatives categorized as net investment hedges are entered into to protect the net investment in our foreign operations against adverse changes in exchange rates. We use foreign exchange forward contracts to convert the foreign currency risk to U.S. dollars to mitigate our exposure to fluctuations 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 OCI. 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: December 31, (In millions) 2018 2017 Derivatives not designated as hedging instruments: Interest rate contracts: Futures $ 2,348 $ 2,392 Foreign exchange contracts: Forward, swap and spot 2,238,819 1,679,976 Options purchased 578 350 Options written 576 302 Futures 49 50 Commodity and equity contracts: Commodity (1) — 16 Equity (1) — 50 Other: Stable value contracts (2) 26,634 26,653 Deferred value awards (3) 434 473 Derivatives designated as hedging instruments: Interest rate contracts: Swap agreements 10,596 11,047 Foreign exchange contracts: Forward and swap 3,412 28,913 (1) Primarily composed of positions held by a consolidated sponsored investment fund. (2) The notional value of the stable value contracts generally represents our maximum exposure. However, exposure to various stable value contracts is contractually limited to substantially lower amounts than the notional values, which represent the total assets of the stable value funds. (3) Represents grants of deferred value awards to employees; refer to discussion in this note under "Derivatives Not Designated as Hedging Instruments." Notional amounts are provided here as an indication of the volume of our derivative activity and serve as a reference to calculate the fair values of the derivative. 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 11 . December 31, December 31, 2018 2017 2018 2017 (In millions) Derivative Assets (1) Derivative Liabilities (2) Derivatives not designated as hedging instruments: Foreign exchange contracts $ 16,369 $ 11,477 $ 16,434 $ 11,361 Other derivative contracts — 1 214 284 Total $ 16,369 $ 11,478 $ 16,648 $ 11,645 Derivatives designated as hedging instruments: Foreign exchange contracts $ 17 $ 120 $ 88 $ 107 Interest rate contracts 13 8 71 100 Total $ 30 $ 128 $ 159 $ 207 (1) Derivative assets are included within other assets in our consolidated statement of condition. (2) 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: Years Ended December 31, 2018 2017 2016 (In millions) Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Derivatives not designated as hedging instruments: Foreign exchange contracts Foreign exchange trading services revenue $ 723 $ 632 $ 662 Foreign exchange contracts Interest expense (1) (41 ) — — Foreign exchange contracts Processing fees and other revenue — (23 ) — Interest rate contracts Foreign exchange trading services revenue (6 ) 8 (7 ) Interest rate contracts Processing fees and other revenue (1) (1 ) — 1 Credit derivative contracts Foreign exchange trading services revenue — — (1 ) Other derivative contracts Foreign exchange trading services revenue 5 — (2 ) Other derivative contracts Compensation and employee benefits (171 ) (143 ) (448 ) Total $ 509 $ 474 $ 205 (1) 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. The following table shows the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships: December 31, 2018 Hedged Items Currently Designated Hedged Items No Longer Designated (1) (In millions) Carrying Amount of Assets (Liabilities) (2) Cumulative Hedge Accounting Basis Adjustments Carrying Amount of Assets (Liabilities) Cumulative Hedge Accounting Basis Adjustments Long-term debt $ 8,270 $ (137 ) $ 1,197 $ (20 ) Available-for-sale securities 1,496 72 50 1 Total $ 9,766 $ (65 ) $ 1,247 $ (19 ) December 31, 2017 Hedged Items Currently Designated Hedged Items No Longer Designated (1) (In millions) Carrying Amount of Assets (Liabilities) (2) Cumulative Hedge Accounting Basis Adjustments Carrying Amount of Assets (Liabilities) Cumulative Hedge Accounting Basis Adjustments Long-term debt $ 8,465 $ (95 ) $ 1,400 $ 8 Available-for-sale securities 1,926 106 894 1 Total $ 10,391 $ 11 $ 2,294 $ 9 (1) Represents hedged items no longer designated in qualifying fair value hedging relationships for which an associated basis adjustment exists at the balance sheet date. (2) Does not include the carrying amount of hedged items when only foreign currency risk is the designated hedged risk. The carrying amount excluded for investment securities was $458 million and $763 million for December 31, 2018 and 2017, respectively. The carrying amount of assets (liabilities) excludes deposits of zero and $13.2 billion for December 31, 2018 and 2017, respectively. As of December 31, 2018 and 2017, the total notional amount of the interest rate swaps of fair value hedges was $9.3 billion and $9.7 billion , respectively. The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated: Years Ended December 31, Years Ended December 31, 2018 2017 2016 2018 2017 2016 (In millions) 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 Derivatives designated as fair value hedges: Foreign exchange contracts Processing fees and other revenue $ (74 ) $ 18 $ (6 ) Investment securities Processing fees and other revenue $ 74 $ (18 ) $ 6 Foreign exchange contracts Processing fees and other revenue (328 ) 626 221 FX deposit Processing fees and other revenue 328 (626 ) (221 ) Interest rate contracts (1) Net interest income 31 — — Available-for-sale securities (2) Net interest income (32 ) — — Interest rate contracts (1) Net interest income (58 ) — — Long-term debt Net interest income 49 — — Interest rate contracts (1) Processing fees and other revenue — 39 43 Available-for-sale securities (2) Processing fees and other revenue — (37 ) (40 ) Interest rate contracts (1) Processing fees and other revenue — (38 ) (98 ) Long-term debt Processing fees and other revenue — 39 100 Total $ (429 ) $ 645 $ 160 $ 419 $ (642 ) $ (155 ) (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 2018, 2017 and 2016, $24 million , $22 million and $23 million , respectively, of net unrealized gains on AFS investment securities designated in fair value hedges were recognized in OCI. Years Ended December 31, Years Ended December 31, 2018 2017 2016 2018 2017 2016 (In millions) Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Derivatives designated as cash flow hedges: Interest rate contracts $ (12 ) $ (14 ) $ — Net interest income $ (1 ) $ 2 $ — Foreign exchange contracts (12 ) (104 ) (39 ) Net interest income 27 24 24 Total $ (24 ) $ (118 ) $ (39 ) $ 26 $ 26 $ 24 Derivatives designated as net investment hedges: Foreign exchange contracts $ 81 $ (160 ) $ 109 Gains (losses) related to investment securities, net $ — $ — $ — Total $ 81 $ (160 ) $ 109 $ — $ — $ — Derivatives Netting and Credit Contingencies Netting Derivatives receivable and payable as well as cash collateral from the same counterparty are netted in the consolidated statement of condition for those counterparties with whom we have legally binding master netting agreements in place. In addition to cash collateral received and transferred presented on a net basis, we also receive and transfer collateral in the form of securities, which mitigate credit risk but are not eligible for netting. Additional information on netting is provided in Note 11 . Credit Contingencies Certain of our derivatives are subject to master netting agreements with our derivative counterparties containing credit risk-related contingent features, which requires us to maintain an investment grade credit rating with the various credit rating agencies. If our rating falls below investment grade, we would be in violation of the provisions, and counterparties to the derivatives could request immediate payment or demand full overnight collateralization on derivatives instruments in net liability positions. The aggregate fair value of all derivatives with credit contingent features and in a liability position as of December 31, 2018 totaled approximately $2.1 billion , against which we provided $1.1 billion of collateral in the normal course of business. If our credit related contingent features underlying these agreements were triggered as of December 31, 2018 , the maximum additional collateral we would be required to post to our counterparties is approximately $1.0 billion . |
Offsetting Arrangements
Offsetting Arrangements | 12 Months Ended |
Dec. 31, 2018 | |
Offsetting [Abstract] | |
Offsetting Arrangements | Offsetting Arrangements Certain of our transactions are subject to master netting agreements that allow us to net receivables and payables by contract and settlement type. For those legally enforceable contracts, we net receivables and payables with the same counterparty on our statement of condition. In addition to netting receivables and payables with our derivatives counterparty where a legal and enforceable netting arrangement exist, we also net related cash collateral received and transferred up to the fair value exposure amount. With respect to our securities financing arrangements, we net balances outstanding on our consolidated statement of condition for those transactions that met the netting requirements and were transacted under a legally enforceable netting arrangement with the counterparty. Securities received as collateral under securities financing or derivatives transactions can be transferred as collateral in many instances. The securities received as proceeds under secured lending transactions are recorded at a value that approximates fair value in other assets in our consolidated statement of condition with a related liability to return the collateral, if we have the right to transfer or re-pledge the collateral. As of December 31, 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 $11.69 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 $5.31 billion and $15 million , respectively. The increase in 2018 is primarily attributable to 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: December 31, 2018 Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 16,386 $ (10,223 ) $ 6,163 $ — $ 6,163 Interest rate contracts (6) 13 — 13 — 13 Other derivative contracts — — — — — Cash collateral and securities netting NA (987 ) (987 ) (220 ) (1,207 ) Total derivatives 16,399 (11,210 ) 5,189 (220 ) 4,969 Other financial instruments: Resale agreements and securities borrowing (7) 116,143 (91,889 ) 24,254 (22,872 ) 1,382 Total derivatives and other financial instruments $ 132,542 $ (103,099 ) $ 29,443 $ (23,092 ) $ 6,351 Assets: December 31, 2017 Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) 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) Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments. (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 $24.3 billion as of December 31, 2018 were $4.7 billion of resale agreements and $19.6 billion of collateral provided related to securities borrowing. Included in the $22.6 billion as of December 31, 2017 were $3.2 billion of resale agreements and $19.4 billion 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 12 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: December 31, 2018 Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 16,522 $ (10,223 ) $ 6,299 $ — $ 6,299 Interest rate contracts (6) 71 — 71 — 71 Other derivative contracts 214 — 214 — 214 Cash collateral and securities netting NA (1,341 ) (1,341 ) (215 ) (1,556 ) Total derivatives 16,807 (11,564 ) 5,243 (215 ) 5,028 Other financial instruments: Repurchase agreements and securities lending (7) 104,494 (91,889 ) 12,605 (11,543 ) 1,062 Total derivatives and other financial instruments $ 121,301 $ (103,453 ) $ 17,848 $ (11,758 ) $ 6,090 Liabilities: December 31, 2017 Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (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) Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments (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 $12.6 billion as of December 31, 2018 were $1.1 billion of repurchase agreements and $11.5 billion of collateral received related to securities lending transactions. Included in the $6.7 billion as of December 31, 2017 were $2.8 billion of repurchase agreements and $3.9 billion 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 12 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 to 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 repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated: As of December 31, 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 $ 88,904 $ — $ 88,904 $ 43,072 Total 88,904 — 88,904 43,072 Securities lending transactions: US Treasury and agency securities 249 — 249 — Corporate debt securities 278 — 278 35 Equity securities 6,426 137 6,563 11,020 Other (2) 8,500 — 8,500 — Total 15,453 137 15,590 11,055 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 104,357 $ 137 $ 104,494 $ 54,127 (1) As of December 31, 2017 , there were no balances with contractual maturities up to 30 days. (2) Represents a security interest in 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 | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Guarantees | Commitments and Guarantees 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) December 31, 2018 December 31, 2017 Commitments: Unfunded credit facilities $ 28,951 $ 26,488 Guarantees (1) : Indemnified securities financing $ 342,337 $ 381,817 Standby letters of credit 2,985 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 December 31, 2018 , approximately 73% 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. We require the borrowers to maintain collateral in an amount in excess of 100% of the fair market value of the securities borrowed. Securities on loan and the collateral are revalued daily to determine if additional collateral is necessary or if excess collateral is required to be returned to the borrower. Collateral received in connection with our securities lending services is held by us as agent and is not recorded in our consolidated statement of condition. The cash collateral held by us as agent is invested on behalf of our clients. In certain cases, the cash collateral is invested in third-party repurchase agreements, for which we indemnify the client against the loss of the principal invested. We require the counterparty to the indemnified repurchase agreement to provide collateral in an amount in excess of 100% of the amount of the repurchase agreement. In our role as agent, the indemnified repurchase agreements and the related collateral held by us are not recorded in our consolidated statement of condition. 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) December 31, 2018 December 31, 2017 Fair value of indemnified securities financing $ 342,337 $ 381,817 Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing 357,893 400,828 Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements 42,610 61,270 Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements 45,064 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 December 31, 2018 and December 31, 2017 , we had approximately $19.58 billion and $19.40 billion , respectively, of collateral provided and approximately $11.52 billion and $3.85 billion , respectively, of collateral received from clients in connection with our participation in principal securities finance transactions. Stable Value Protection Stable value funds wrapped by us are high-quality diversified portfolios of short-intermediate duration fixed-income investments. Stable value contracts are derivative contracts that also qualify as guarantees. The notional amount under non-hedging derivatives, provided in Note 10 , generally represents our maximum exposure under these derivatives contracts. However, exposure to various stable value contracts is contractually limited to substantially lower amounts than the notional values, which represent the total assets of the stable value funds. 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 | 12 Months Ended |
Dec. 31, 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 or development 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 December 31, 2018 , our aggregate accruals for loss contingencies for legal and regulatory matters totaled approximately $38 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. As of December 31, 2018, for those matters for which we have accrued probable loss contingencies (including the Invoicing Matter described below) and for other matters for which loss is reasonably possible (but not probable) in future periods, and for which we are able to estimate a range of reasonably possible loss, our estimate of the aggregate reasonably possible loss (in excess of any accrued amounts) ranges up to approximately $300 million . Our estimate with respect to the aggregate 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, which may change quickly and significantly from time to time, particularly if and as we engage with applicable governmental agencies or plaintiffs in connection with a proceeding. Also, the matters underlying the reasonably possible loss will change from time to time. As a result, actual results may vary significantly from the current estimate. In certain pending matters, it is not currently feasible to reasonably estimate the amount or a range of reasonably possible loss, 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. 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 our actual losses from any legal or regulatory proceeding for which we have provided an estimate of the reasonably possible loss could significantly exceed such estimate, and 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, no conclusion as to our 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 2015, we determined that we had incorrectly invoiced clients for certain expenses. We have reimbursed most of our affected customers for those expenses, and we have implemented enhancements to our billing processes. 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. In 2017, we identified an additional area of incorrect expense billing associated with mailing services in our retirement services business. The accrual for loss contingencies at December 31, 2018 included an estimate of the amount we anticipate reimbursing clients due to that error. We currently expect the cumulative total of our payments to customers for these invoicing errors, including the error in the retirement services business, to be at least $380 million , all of which has been paid or is accrued. However, we may identify additional remediation costs. 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 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 settlement of civil claims regarding our indirect foreign exchange business. The staff of the SEC has informed us that it intends to ask the SEC for permission to bring an action against us asserting that we overcharged clients that are registered investment companies for custody expenses in violation of §§ 31(a), 34(b) and 37 of the Investment Company Act of 1940, and Rules 31a-1(a) and 31a-1(b) thereunder. We have submitted to the staff of the SEC a response, which included a settlement proposal, which the staff has indicated is too low, and we remain in discussions with the staff as to a potential settlement. Our aggregate accruals for loss contingencies for legal and regulatory matters as of December 31, 2018 include the amount of penalties reflected in our settlement proposal. There can be no assurance that any settlement, whether with the SEC or other governmental authorities, will be reached or, if so, the amount of the settlement or its impact on other claims relating to these matters. In the first half of 2019, it is likely that discussions will commence with the DOJ regarding a potential resolution of their investigation regarding this matter, which will then enable us to better assess the potential penalties and/or other sanctions they will be seeking. The aggregate amount of penalties that may potentially be imposed upon us in connection with the resolution of all outstanding investigations into our historical billing practices could be multiples of the potential penalties being discussed with the staff of the SEC. 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. 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 shareholder of ours 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. The Court has preliminarily approved a class settlement in this matter for $4.9 million . The final fairness hearing is scheduled to take place in April 2019. In addition, a shareholder of ours 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 $108 million as of December 31, 2018 increased 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 2012. Management believes that we have sufficiently accrued liabilities as of December 31, 2018 for potential tax exposures. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities We are involved, in the normal course of our business, with various types of special purpose entities, some of which meet the definition of VIEs. When evaluating a VIE for consolidation, we must determine whether or not we have a variable interest in the entity. Variable interests are investments or other interests that absorb portions of an entity’s expected losses or receive portions of the entity’s expected returns. If it is determined that we do not have a variable interest in the VIE, no further analysis is required and we do not consolidate the VIE. If we hold a variable interest in a VIE, we are required by U.S. GAAP to consolidate that VIE when we have a controlling financial interest in the VIE and therefore are deemed to be the primary beneficiary. We are determined to have a controlling financial interest in a VIE when it has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to that VIE. This determination is evaluated periodically as facts and circumstances change. Asset-Backed Investment Securities We invest in various forms of ABS, which we carry in our investment securities portfolio. These ABS meet the U.S. GAAP definition of asset securitization entities, which are considered to be VIEs. We are not considered to be the primary beneficiary of these VIEs since we do not have control over their activities. Additional information about our ABS is provided in Note 3 . 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 December 31, 2018 and December 31, 2017 , we carried AFS investment securities, composed of securities related to state and political subdivisions, with a fair value of $1.05 billion and $1.25 billion , respectively, and other short-term borrowings of $0.93 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. We transfer assets to the trusts from our investment securities portfolio at adjusted book value, and the trusts finance the acquisition of these assets by selling certificated interests issued by the trust to third-party investors and to us as residual holder. These transfers do not meet the de-recognition criteria defined by U.S. GAAP, and therefore, the assets continue to be recorded in our consolidated financial statements. The trusts had a weighted-average life of approximately 3.6 years as of December 31, 2018 , compared to approximately 4.6 years as of December 31, 2017 . Under separate legal agreements, we provide liquidity facilities to these trusts and, with respect to certain securities, letters of credit. As of December 31, 2018 , our commitments to the trusts under these liquidity facilities and/or letters of credit totaled $946 million , and neither of the liquidity facilities nor letters of credit were utilized. In the event that our obligations under these liquidity facilities are triggered, no material impact to our consolidated results of operations or financial condition is expected to occur, because the securities are already recorded at fair value in our consolidated statement of condition. In addition, neither creditors or third-party investors in the trusts have any recourse to our general credit other than through the liquidity facilities and letters of credit noted above. Interests in Investment Funds In the normal course of business, we manage various types of investment funds through State Street Global Advisors in which our clients are investors, including State Street Global Advisors commingled investment vehicles and other similar investment structures. The majority of our AUM are contained within such funds. The services we provide to these funds generate management fee revenue. From time to time, we may invest cash in the funds in order for the funds to establish a performance history for newly-launched strategies, referred to as seed capital, or for other purposes. With respect to our interests in funds that meet the definition of a VIE, a primary beneficiary assessment is performed to determine if we have a controlling financial interest. As part of our assessment, we consider all the facts and circumstances regarding the terms and characteristics of the variable interest(s), the design and characteristics of the fund and the other involvements of the enterprise with the fund. Upon consolidation of certain funds, we retain the specialized investment company accounting rules followed by the underlying funds. All of the underlying investments held by such consolidated funds are carried at fair value, with corresponding changes in the investments’ fair values reflected in foreign exchange trading services revenue in our consolidated statement of income. When we no longer control these funds due to a reduced ownership interest or other reasons, the funds are de-consolidated and accounted for under another accounting method if we continue to maintain investments in the funds. As of December 31, 2018 , we do not have any consolidated sponsored investment funds. As of December 31, 2017 , the aggregate assets and liabilities of our consolidated sponsored investment funds totaled approximately $150 million and $50 million , respectively. Our conclusion to consolidate a fund may vary from period to period, most commonly as a result of fluctuation in our ownership interest as a result of changes in the number of fund shares held by either us or by third parties. Given that the funds follow specialized investment company accounting rules which prescribe fair value, a de-consolidation generally would not result in gains or losses for us. The net assets of any consolidated fund are solely available to settle the liabilities of the fund and to settle any investors’ ownership redemption requests, including any seed capital invested in the fund by us. We are not contractually required to provide financial or any other support to any of our funds. In addition, neither creditors nor equity investors in the funds have any recourse to our general credit. As of December 31, 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 approximately $70 million and $72 million as of December 31, 2018 and December 31, 2017 , respectively, 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 | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Preferred Stock In September 2018, we issued 500,000 depositary shares, each representing 1/100th ownership interest in a share of our fixed-to-floating rate non-cumulative perpetual preferred stock, Series H, without par value per share, with a liquidation preference of $100,000 per share (equivalent to $1,000 per depositary share), in a public offering. The aggregate proceeds, net of underwriting discounts, commissions and other issuance costs, were approximately $500 million, and were used to fund a portion of our acquisition of Charles River Development on October 1, 2018. Dividends on the Series H Preferred stock are paid semi-annually and commenced on December 15, 2018, with the first dividend paid on a pro-rata basis. The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of December 31, 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 Series H September 2018 500,000 1/100th 100,000 1,000 494 December 15, 2023 (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: Years Ended December 31, 2018 2017 Dividends Declared per Share Dividends Declared per Depositary Share Total Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Preferred Stock: Series C $ 5,250 $ 1.32 $ 26 $ 5,250 $ 1.32 $ 26 Series D 5,900 1.48 44 5,900 1.48 44 Series E 6,000 1.52 45 6,000 1.52 45 Series F 5,250 52.50 40 5,250 52.50 40 Series G 5,352 1.32 27 5,352 1.32 27 Series H 1,219 12.18 6 — — — Total $ 188 $ 182 In January 2019, 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 $1,338, respectively, per share, or approximately $0.33, $0.37, $0.38, $26.25 and $0.33, respectively, per depositary share. These dividends total approximately $6 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 March 2019. Common Stock In July 2018, we completed a public offering of approximately 13.24 million shares of our common stock. The offering price was $86.93 per share and net proceeds totaled approximately $1.15 billion , which were used to fund a portion of our acquisition of Charles River Development on October 1, 2018. 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). 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). We did not repurchase any common stock during either the second quarter of 2018 under the 2017 Program or the third and fourth quarters of 2018 under the 2018 Program. The table below presents the activity under our common stock purchase program during the period indicated: Year Ended December 31, 2018 (1) Shares Acquired Average Cost per Share Total Acquired 2017 Program 3.3 $ 105.31 $ 350 (1) During the year ended December 31, 2018, there were no shares repurchased under the 2018 Program. The table below presents the dividends declared on common stock for the periods indicated: Years Ended December 31, 2018 2017 Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) Common Stock $ 1.78 $ 665 $ 1.60 $ 596 Accumulated Other Comprehensive Income (Loss) The following table presents the after-tax components of AOCI as of the dates indicated: Years Ended December 31, (In millions) 2018 2017 2016 Net unrealized (losses) gains on cash flow hedges $ (89 ) $ (56 ) $ 229 Net unrealized (losses) gains on available-for-sale securities portfolio (193 ) 148 (225 ) Net unrealized gains related to reclassified available-for-sale securities 58 19 25 Net unrealized (losses) gains on available-for-sale securities (135 ) 167 (200 ) Net unrealized (losses) on available-for-sale securities designated in fair value hedges (40 ) (64 ) (86 ) Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries 16 (65 ) 95 Other-than-temporary impairment on held-to-maturity securities related to factors other than credit (2 ) (6 ) (9 ) Net unrealized (losses) on retirement plans (143 ) (170 ) (194 ) Foreign currency translation (963 ) (815 ) (1,875 ) Total $ (1,356 ) $ (1,009 ) $ (2,040 ) The following table presents changes in AOCI by component, net of related taxes, for the periods indicated: (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 (285 ) 412 (160 ) 3 — 1,059 1,029 Amounts reclassified into (out of) earnings — (23 ) — — 24 1 2 Other comprehensive income (loss) (285 ) 389 (160 ) 3 24 1,060 1,031 Balance as of December 31, 2017 $ (56 ) $ 103 $ (65 ) $ (6 ) $ (170 ) $ (815 ) $ (1,009 ) Other comprehensive income (loss) before reclassifications (33 ) (285 ) 81 6 — (148 ) (379 ) Amounts reclassified into (out of) earnings — 7 — (2 ) 27 — 32 Other comprehensive income (loss) (33 ) (278 ) 81 4 27 (148 ) (347 ) Balance as of December 31, 2018 $ (89 ) $ (175 ) $ 16 $ (2 ) $ (143 ) $ (963 ) $ (1,356 ) The following table presents after-tax reclassifications into earnings for the periods indicated: Years Ended December 31, 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 $16, respectively $ 7 $ (23 ) 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, net of related taxes of $1 and zero, respectively (2 ) — Losses reclassified (from) to other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of ($8) and ($8), respectively 27 24 Compensation and employee benefits expenses Foreign currency translation: Sales of non-U.S. entities, net of related taxes — 1 Processing fees and other revenue Total reclassifications into (out of) AOCI $ 32 $ 2 |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 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. As required by the Dodd-Frank Act, we 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 have changed as the provisions of the Basel III final rule related to the numerator (capital) and denominator (RWA) were phased in, and as we calculated our RWA using the advanced approaches. These ongoing methodological changes have resulted 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 December 31, 2018 , we and State Street Bank exceeded all regulatory capital adequacy requirements to which we were subject. As of December 31, 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 December 31, 2018 that have changed the capital categorization of State Street Bank. The following table presents the regulatory capital structure, total RWA, related regulatory capital ratios and the minimum required regulatory capital ratios for us 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 were 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 December 31, 2018 Basel III Standardized Approach December 31, 2018 Basel III Advanced Approaches December 31, 2017 Basel III Standardized Approach December 31, 2017 Basel III Advanced Approaches December 31, 2018 Basel III Standardized Approach December 31, 2018 Basel III Advanced Approaches December 31, 2017 Basel III Standardized Approach December 31, 2017 Common shareholders' equity: Common stock and related surplus $ 10,565 $ 10,565 $ 10,302 $ 10,302 $ 12,894 $ 12,894 $ 11,612 $ 11,612 Retained earnings (1) 20,606 20,606 18,856 18,856 14,261 14,261 12,312 12,312 Accumulated other comprehensive income (loss) (1,332 ) (1,332 ) (972 ) (972 ) (1,112 ) (1,112 ) (809 ) (809 ) Treasury stock, at cost (8,715 ) (8,715 ) (9,029 ) (9,029 ) — — — — Total 21,124 21,124 19,157 19,157 26,043 26,043 23,115 23,115 Regulatory capital adjustments: Goodwill and other intangible assets, net of associated deferred tax liabilities (2) (9,350 ) (9,350 ) (6,877 ) (6,877 ) (9,073 ) (9,073 ) (6,579 ) (6,579 ) Other adjustments (3) (194 ) (194 ) (76 ) (76 ) (29 ) (29 ) (5 ) (5 ) Common equity tier 1 capital 11,580 11,580 12,204 12,204 16,941 16,941 16,531 16,531 Preferred stock 3,690 3,690 3,196 3,196 — — — — Trust preferred capital securities subject to phase-out from tier 1 capital — — — — — — — — Other adjustments — — (18 ) (18 ) — — — — Tier 1 capital 15,270 15,270 15,382 15,382 16,941 16,941 16,531 16,531 Qualifying subordinated long-term debt 778 778 980 980 776 776 983 983 Trust preferred capital securities phased out of tier 1 capital — — — — — — — — ALLL and other 14 83 4 72 11 83 — 72 Other adjustments — — 1 1 — — — — Total capital $ 16,062 $ 16,131 $ 16,367 $ 16,435 $ 17,728 $ 17,800 $ 17,514 $ 17,586 RWA: Credit risk (4) $ 47,738 $ 97,303 $ 52,000 $ 101,349 $ 45,565 $ 94,776 $ 49,489 $ 98,433 Operational risk (5) 46,060 NA 45,822 NA 44,494 NA 45,295 NA Market risk 1,517 1,517 1,334 1,334 1,517 1,517 1,334 1,334 Total RWA $ 95,315 $ 98,820 $ 99,156 $ 102,683 $ 91,576 $ 96,293 $ 96,118 $ 99,767 Adjusted quarterly average assets $ 211,924 $ 211,924 $ 209,328 $ 209,328 $ 209,413 $ 209,413 $ 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 % 12.1 % 11.7 % 12.3 % 11.9 % 18.5 % 17.6 % 17.2 % 16.6 % Tier 1 capital 9.0 8.0 16.0 15.5 15.5 15.0 18.5 17.6 17.2 16.6 Total capital 11.0 10.0 16.9 16.3 16.5 16.0 19.4 18.5 18.2 17.6 (1) In accordance with the applicable bank regulatory rules, we are not required to and, accordingly, did not revise previously-filed reported capital metrics and ratios due to our change in accounting. (2) Amounts for us and State Street Bank as of December 31, 2018 consisted of goodwill, net of associated deferred tax liabilities, and 100% of other intangible assets, net of associated deferred tax liabilities. Amounts for us 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. (3) Other adjustments within CET1 primarily include the overfunded portion of the firm’s defined benefit pension plan obligation net of associated deferred tax liabilities, disallowed deferred tax assets, and other required credit risk based deductions. (4) Includes a CVA which reflects the risk of potential fair value adjustments for credit risk reflected in our valuation of over-the-counter derivative contracts. We used a simple CVA approach in conformity with the Basel III advanced approaches. (5) 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 RWA under the advanced approaches depending on the severity of the loss event and its categorization among the seven Basel-defined UOMs. (6) Minimum requirements were phased in with full implementation beginning on January 1, 2019; minimum requirements listed are as of December 31, 2018 . (7) Minimum requirements were phased in with 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 | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, (In millions) 2018 2017 2016 Interest income: Interest-bearing deposits with banks $ 387 $ 180 $ 126 Investment securities: U.S. Treasury and federal agencies 1,178 854 821 State and political subdivisions 143 226 224 Other investments 560 658 756 Securities purchased under resale agreements 335 264 146 Loans and leases 687 504 378 Other interest-earning assets 372 222 61 Total interest income 3,662 2,908 2,512 Interest expense: Interest-bearing deposits 363 163 85 Securities sold under repurchase agreements 13 2 1 Other short-term borrowings 17 10 7 Long-term debt 389 308 260 Other interest-bearing liabilities 209 121 75 Total interest expense 991 604 428 Net interest income $ 2,671 $ 2,304 $ 2,084 |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation We record compensation expense for equity-based awards, such as deferred stock and performance awards, based on the closing price of our common stock on the date of grant, adjusted if appropriate, based on the eligibility of the award to receive dividends. The fair value of stock appreciation rights is determined using the Black-Scholes valuation model. Compensation expense related to equity-based awards with service-only conditions and terms that provide for a graded vesting schedule is recognized on a straight-line basis over the required service period for the entire award. Compensation expense related to equity-based awards with performance conditions and terms that provide for a graded vesting schedule is recognized over the requisite service period for each separately vesting tranche of the award, and is based on the probable outcome of the performance conditions at each reporting date. Compensation expense is adjusted for assumptions with respect to the estimated amount of awards that will be forfeited prior to vesting, and for employees who have met certain retirement eligibility criteria. Compensation expense for common stock awards granted to employees meeting early retirement eligibility criteria is fully expensed on the grant date. Dividend equivalents for certain equity-based awards are paid on stock units on a current basis prior to vesting and distribution. The 2017 Stock Incentive Plan, or 2017 Plan, was approved by shareholders in May 2017 for issuance of stock and stock based awards. Awards may be made under the 2017 Plan for (i) up to 8.3 million shares of common stock plus (ii) up to an additional 28.5 million shares that were available to be issued under the 2006 Equity Incentive Plan, or 2006 Plan, or may become available for issuance under the 2006 Plan due to expiration, termination, cancellation, forfeiture or repurchase of awards granted under the 2006 Plan. As of December 31, 2018, a total of 18.9 million shares from the 2006 Plan have been added to and may be issued from the 2017 Plan. As of December 31, 2018 , a cumulative total of 3.9 million shares had been awarded under the 2017 Plan and 68.9 million shares had been awarded under the 2006 Plan. As of December 31, 2017, we had cumulative totals of 0.4 million shares awarded under the 2017 Plan and 68.9 million shares awarded under the 2006 Plan. As of December 31, 2016, we had a cumulative total of 65.7 million shares awarded under the 2006 Plan. The 2017 Plan allows for shares withheld in payment of the exercise price of an award or in satisfaction of tax withholding requirements, shares forfeited due to employee termination, shares expired under options awards, or shares not delivered when performance conditions have not been met, to be added back to the pool of shares available for issuance under the 2017 Plan. From inception to December 31, 2018 , fewer than 1 million shares had been awarded under the 2017 Plan but not delivered, and have become available for re-issue. As of December 31, 2018, a total of 23.6 million shares were available for future issuance under the 2017 Plan. The exercise price of stock appreciation rights may not be less than the fair value of such shares on the date of grant. Stock appreciation rights granted under the 1997 Equity Incentive Plan, or 1997 Plan, and the 2006 Plan, collectively the Plans, generally vest over four years and expire no later than ten years from the date of grant. No stock appreciation rights have been granted since 2009. For deferred stock awards granted under the Plans, no common stock is issued at the time of grant and the award does not possess dividend and voting rights. Generally, these grants vest over one to four years. Performance awards granted are earned over a performance period based on the achievement of defined goals, generally over three years. Payment for performance awards is made in shares of our common stock equal to its fair market value per share, based on the performance of certain financial ratios, after the conclusion of each performance period. Beginning with 2012, malus-based forfeiture provisions were included in deferred stock awards granted to employees identified as “material risk-takers,” as defined by management. These malus-based forfeiture provisions provide for the reduction or cancellation of unvested deferred compensation, such as deferred stock awards and performance based awards, if it is determined that a material risk-taker made risk-based decisions that exposed us to inappropriate risks that resulted in a material unexpected loss at the business-unit, line-of-business or corporate level. In addition, awards granted to certain of our senior executives, as well as awards granted to individuals in certain jurisdictions, may be subject to recoupment after vesting (if applicable) and delivery to the individual in specified circumstances generally relating to fraud or willful misconduct by the individual that results in material harm to us or a material financial restatement. Compensation expense related to stock appreciation rights, deferred stock awards and performance awards, which we record as a component of compensation and employee benefits expense in our consolidated statement of income, was $262 million , $243 million and $268 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Such expense for 2018 , 2017 and 2016 excluded $45 million , $15 million and $9 million , respectively, associated with acceleration of expense in connection with targeted staff reductions. This expense was included in the severance-related portion of the associated restructuring or repositioning charges recorded in each respective year. The following table presents information about stock appreciation rights activity during the years indicated. For the year ended December 31, 2018, no stock appreciation rights were exercised. The total intrinsic value of stock appreciation rights exercised during the years ended December 31, 2017 and 2016 was $5 million and $1 million , respectively. As of December 31, 2018 , there was no unrecognized compensation cost related to stock appreciation rights. Shares (In thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In years) Total Intrinsic Value (In millions) Stock Appreciation Rights: Outstanding as of December 31, 2016 955 $ 77.52 Exercised (595 ) 81.71 Forfeited or expired (360 ) 70.59 Outstanding as of December 31, 2017 0 $ — 0 $ — Shares (In thousands) Weighted-Average Grant Date Fair Value Deferred Stock Awards: Outstanding as of December 31, 2016 7,814 $ 60.01 Granted 2,977 76.38 Vested (3,686 ) 62.88 Forfeited (257 ) 63.56 Outstanding as of December 31, 2017 6,848 65.44 Granted 2,500 101.25 Vested (3,235 ) 70.98 Forfeited (138 ) 80.6 Outstanding as of December 31, 2018 5,975 $ 77.07 The total fair value of deferred stock awards vested for the years ended December 31, 2018 , 2017 and 2016 , based on the weighted average grant date fair value in each respective year, was $230 million , $232 million and $275 million , respectively. As of December 31, 2018 , total unrecognized compensation cost related to deferred stock awards, net of estimated forfeitures, was $249 million , which is expected to be recognized over a weighted-average period of 2.5 years. Shares (In thousands) Weighted-Average Grant Date Fair Value Performance Awards: Outstanding as of December 31, 2016 1,247 $ 60.37 Granted 534 76.27 Forfeited 0 — Paid out (233 ) 58.91 Outstanding as of December 31, 2017 1,548 66.09 Granted 1,067 74.68 Forfeited (1 ) 101.26 Paid out (457 ) 70.58 Outstanding as of December 31, 2018 2,157 $ 69.36 The total fair value of performance awards vested for the years ended December 31, 2018 , 2017 and 2016 , based on the weighted average grant date fair value in each respective year, was $32 million , $14 million and $21 million , respectively. As of December 31, 2018 , total unrecognized compensation cost related to performance awards, net of estimated forfeitures, was $62 million , which is expected to be recognized over a weighted-average period of 2.1 years. We utilize either treasury shares or authorized but unissued shares to satisfy the issuance of common stock under our equity incentive plans. We do not have a specific policy concerning purchases of our common stock to satisfy stock issuances. We have a general policy concerning purchases of our common stock to meet issuances under our employee benefit plans, including other corporate purposes. Various factors determine the amount and timing of our purchases of our common stock, including regulatory reviews and approvals or non-objections, our regulatory capital requirements, the number of shares we expect to issue under employee benefit plans, market conditions (including the trading price of our common stock), and legal considerations. These factors can change at any time, and the number of shares of common stock we will purchase or when we will purchase them cannot be assured. Additional information on our common stock purchase program is provided in Note 15 . |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits Defined Benefit Pension and Other Post-Retirement Benefit Plans State Street Bank and certain of its U.S. subsidiaries participate in a non-contributory, tax-qualified defined benefit pension plan. The U.S. defined benefit pension plan was frozen as of December 31, 2007 and no new employees were eligible to participate after that date. We have agreed to contribute sufficient amounts as necessary to meet the benefits paid to plan participants and to fund the plan’s service cost, plus interest. U.S. employee account balances earn annual interest credits until the employee begins receiving benefits. Non-U.S. employees participate in local defined benefit plans which are funded as required in each local jurisdiction. In addition to the defined benefit pension plans, we have non-qualified unfunded SERP s that provide certain officers with defined pension benefits in excess of allowable qualified plan limits. State Street Bank and certain of its U.S. subsidiaries also participate in a post-retirement plan that provides health care benefits for certain retired employees. The total expense for these tax-qualified and non-qualified plans was $11 million , $15 million and $16 million in 2018 , 2017 and 2016 , respectively. We recognize the funded status of our defined benefit pension plans and other post-retirement benefit plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, in the consolidated statement of position. The assets held by the defined benefit pension plans are largely made up of common, collective funds that are liquid and invest principally in U.S. equities and high-quality fixed-income investments. The majority of these assets fall within Level 2 of the fair value hierarchy. The benefit obligations associated with our primary U.S. and non-U.S. defined benefit plans, non-qualified unfunded supplemental retirement plans and post-retirement plans were $1.21 billion , $110 million and $12 million , respectively, as of December 31, 2018 and $1.32 billion , $125 million and $16 million , respectively, as of December 31, 2017 . As the primary defined benefit plans are frozen, the benefit obligation will only vary over time as a result of changes in market interest rates, the life expectancy of the plan participants and payments made from the plans. The primary U.S. and non-U.S. defined benefit pension plans were underfunded by $1 million and $9 million as of December 31, 2018 and 2017 , respectively. The non-qualified supplemental retirement plans were underfunded by $110 million and $125 million as of December 31, 2018 and 2017 , respectively. The other post-retirement benefit plans were underfunded by $12 million and $16 million as of December 31, 2018 and 2017 , respectively. The underfunded status is included in other liabilities. Defined Contribution Retirement Plans We contribute to employer-sponsored U.S. and non-U.S. defined contribution plans. Our contribution to these plans was $170 million , $146 million , and $132 million in 2018 , 2017 and 2016 , respectively. |
Occupancy Expense and Informati
Occupancy Expense and Information Systems and Communications Expense | 12 Months Ended |
Dec. 31, 2018 | |
Occupancy Expense and Information Systems and Communications Expense [Abstract] | |
Occupancy Expense and Information Systems and Communications Expense | Occupancy Expense and Information Systems and Communications Expense Occupancy expense and information systems and communications expense include depreciation of buildings, leasehold improvements, computer hardware and software, equipment, and furniture and fixtures. Total depreciation expense in 2018 , 2017 and 2016 was $599 million , $526 million and $472 million , respectively. We lease 810,000 square feet at One Lincoln Street, our headquarters building located in Boston, Massachusetts, and a related underground parking garage, under 20 -year, non-cancelable capital leases expiring in September 2023 . A portion of the lease payments is offset by subleases for approximately 219,000 square feet of the building. As of December 31, 2018 and 2017 , an aggregate net book value of $102 million and $159 million , respectively, related to the above-described capital leases was recorded in premises and equipment, with the related liability recorded in long-term debt, in our consolidated statement of condition. Capital lease asset amortization is recorded in occupancy expense on a straight-line basis in our consolidated statement of income over the respective lease term. Lease payments are recorded as a reduction of the liability, with a portion recorded as imputed interest expense. In 2018 , 2017 and 2016 , interest expense related to these capital lease obligations, reflected in NII, was $17 million , $20 million and $22 million , respectively. As of December 31, 2018 and 2017 , accumulated amortization of capital lease assets was $352 million and $401 million , respectively. We have entered into non-cancelable operating leases for premises and equipment. Nearly all of these leases include renewal options. Costs related to operating leases for office space are recorded in occupancy expense. Costs related to operating leases for equipment are recorded in information systems and communications expense. Both are recorded on a straight-line basis. Total rental expense net of sublease revenue in 2018 , 2017 and 2016 amounted to $185 million , $229 million and $194 million , respectively. Total rental expense was reduced by sublease revenue of $5 million in both 2018 and 2017 , and $4 million in 2016 . The following table presents a summary of future minimum lease payments under non-cancelable capital and operating leases as of December 31, 2018 . Aggregate future minimum rental commitments have been reduced by aggregate sublease rental commitments of $46 million for capital leases and $16 million for operating leases. (In millions) Capital Leases Operating Leases Total 2019 $ 34 $ 192 $ 226 2020 31 181 212 2021 31 170 201 2022 31 147 178 2023 24 128 152 Thereafter — 380 380 Total minimum lease payments 151 $ 1,198 $ 1,349 Less amount representing interest payments (31 ) Present value of minimum lease payments $ 120 Expenses The following table presents the components of other expenses for the periods indicated: Years Ended December 31, (In millions) 2018 2017 2016 Professional services $ 357 $ 340 $ 379 Sales advertising public relations 115 67 52 Insurance 97 118 93 Regulatory fees and assessments 87 106 82 Bank operations 70 80 62 Litigation 7 (15 ) 50 Other 443 233 245 Total other expenses $ 1,176 $ 929 $ 963 Acquisition Costs We recorded $31 million of acquisition costs in 2018 related to our acquisition of Charles River Development on October 1, 2018. In 2017 , we recorded approximately $21 million of acquisition costs primarily related to our acquisition of the GEAM business on July 1, 2016. As we integrate Charles River Development into our business, we expect to incur approximately $200 million , including the $31 million in 2018 , of acquisition costs, including merger and integration costs, through 2021. For further information on our acquisition of Charles River Development, refer to Note 1 . Restructuring and Repositioning Charges Repositioning Charges In 2018, we initiated a new expense program to accelerate efforts to become a higher-performing organization and help navigate challenging market and industry conditions. As part of that program, expenses for 2018 included a repositioning charge of $300 million , including $259 million of compensation and employee benefits and $41 million of occupancy costs. Beacon In 2018 , we released $7 million of restructuring accruals related to Beacon. In 2017, we recorded restructuring charges of $245 million primarily related to Beacon. The following table presents aggregate activity for the periods indicated: (In millions) Employee Real Estate Asset and Other Write-offs Total Accrual Balance at December 31, 2015 $ 9 $ 11 $ 3 $ 23 Accruals for Business Operations and Information Technology (2 ) — — (2 ) Accruals for Beacon 94 18 30 142 Payments and other adjustments (64 ) (12 ) (31 ) (107 ) Accrual Balance at December 31, 2016 $ 37 $ 17 $ 2 $ 56 Accruals for Beacon 186 32 27 245 Payments and Other Adjustments (57 ) (17 ) (26 ) (100 ) Accrual Balance at December 31, 2017 $ 166 $ 32 $ 3 $ 201 Accruals for Beacon (7 ) — — (7 ) Accruals for Repositioning Charges 259 41 — 300 Payments and Other Adjustments (115 ) (36 ) (2 ) (153 ) Accrual Balance at December 31, 2018 $ 303 $ 37 $ 1 $ 341 |
Expenses
Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Other Expenses [Abstract] | |
Expenses | Occupancy Expense and Information Systems and Communications Expense Occupancy expense and information systems and communications expense include depreciation of buildings, leasehold improvements, computer hardware and software, equipment, and furniture and fixtures. Total depreciation expense in 2018 , 2017 and 2016 was $599 million , $526 million and $472 million , respectively. We lease 810,000 square feet at One Lincoln Street, our headquarters building located in Boston, Massachusetts, and a related underground parking garage, under 20 -year, non-cancelable capital leases expiring in September 2023 . A portion of the lease payments is offset by subleases for approximately 219,000 square feet of the building. As of December 31, 2018 and 2017 , an aggregate net book value of $102 million and $159 million , respectively, related to the above-described capital leases was recorded in premises and equipment, with the related liability recorded in long-term debt, in our consolidated statement of condition. Capital lease asset amortization is recorded in occupancy expense on a straight-line basis in our consolidated statement of income over the respective lease term. Lease payments are recorded as a reduction of the liability, with a portion recorded as imputed interest expense. In 2018 , 2017 and 2016 , interest expense related to these capital lease obligations, reflected in NII, was $17 million , $20 million and $22 million , respectively. As of December 31, 2018 and 2017 , accumulated amortization of capital lease assets was $352 million and $401 million , respectively. We have entered into non-cancelable operating leases for premises and equipment. Nearly all of these leases include renewal options. Costs related to operating leases for office space are recorded in occupancy expense. Costs related to operating leases for equipment are recorded in information systems and communications expense. Both are recorded on a straight-line basis. Total rental expense net of sublease revenue in 2018 , 2017 and 2016 amounted to $185 million , $229 million and $194 million , respectively. Total rental expense was reduced by sublease revenue of $5 million in both 2018 and 2017 , and $4 million in 2016 . The following table presents a summary of future minimum lease payments under non-cancelable capital and operating leases as of December 31, 2018 . Aggregate future minimum rental commitments have been reduced by aggregate sublease rental commitments of $46 million for capital leases and $16 million for operating leases. (In millions) Capital Leases Operating Leases Total 2019 $ 34 $ 192 $ 226 2020 31 181 212 2021 31 170 201 2022 31 147 178 2023 24 128 152 Thereafter — 380 380 Total minimum lease payments 151 $ 1,198 $ 1,349 Less amount representing interest payments (31 ) Present value of minimum lease payments $ 120 Expenses The following table presents the components of other expenses for the periods indicated: Years Ended December 31, (In millions) 2018 2017 2016 Professional services $ 357 $ 340 $ 379 Sales advertising public relations 115 67 52 Insurance 97 118 93 Regulatory fees and assessments 87 106 82 Bank operations 70 80 62 Litigation 7 (15 ) 50 Other 443 233 245 Total other expenses $ 1,176 $ 929 $ 963 Acquisition Costs We recorded $31 million of acquisition costs in 2018 related to our acquisition of Charles River Development on October 1, 2018. In 2017 , we recorded approximately $21 million of acquisition costs primarily related to our acquisition of the GEAM business on July 1, 2016. As we integrate Charles River Development into our business, we expect to incur approximately $200 million , including the $31 million in 2018 , of acquisition costs, including merger and integration costs, through 2021. For further information on our acquisition of Charles River Development, refer to Note 1 . Restructuring and Repositioning Charges Repositioning Charges In 2018, we initiated a new expense program to accelerate efforts to become a higher-performing organization and help navigate challenging market and industry conditions. As part of that program, expenses for 2018 included a repositioning charge of $300 million , including $259 million of compensation and employee benefits and $41 million of occupancy costs. Beacon In 2018 , we released $7 million of restructuring accruals related to Beacon. In 2017, we recorded restructuring charges of $245 million primarily related to Beacon. The following table presents aggregate activity for the periods indicated: (In millions) Employee Real Estate Asset and Other Write-offs Total Accrual Balance at December 31, 2015 $ 9 $ 11 $ 3 $ 23 Accruals for Business Operations and Information Technology (2 ) — — (2 ) Accruals for Beacon 94 18 30 142 Payments and other adjustments (64 ) (12 ) (31 ) (107 ) Accrual Balance at December 31, 2016 $ 37 $ 17 $ 2 $ 56 Accruals for Beacon 186 32 27 245 Payments and Other Adjustments (57 ) (17 ) (26 ) (100 ) Accrual Balance at December 31, 2017 $ 166 $ 32 $ 3 $ 201 Accruals for Beacon (7 ) — — (7 ) Accruals for Repositioning Charges 259 41 — 300 Payments and Other Adjustments (115 ) (36 ) (2 ) (153 ) Accrual Balance at December 31, 2018 $ 303 $ 37 $ 1 $ 341 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We use an asset-and-liability approach to account for income taxes. Our objective is to recognize the amount of taxes payable or refundable for the current year through charges or credits to the current tax provision, and to recognize deferred tax assets and liabilities for future tax consequences of temporary differences between amounts reported in our consolidated financial statements and their respective tax bases. The measurement of tax assets and liabilities is based on enacted tax laws and applicable tax rates. The effects of a tax position on our consolidated financial statements are recognized when we believe it is more likely than not that the position will be sustained. A valuation allowance is established if it is considered more likely than not that all or a portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities recorded in our consolidated statement of condition are netted within the same tax jurisdiction. The following table presents the components of income tax expense (benefit) for the periods indicated: Years Ended December 31, (In millions) 2018 2017 2016 Current: Federal $ 122 $ 343 $ 69 State 148 24 34 Non-U.S. 374 380 320 Total current expense 644 747 423 Deferred: Federal (128 ) 45 (309 ) State (22 ) 66 38 Non-U.S. 14 (19 ) (85 ) Total deferred expense (benefit) (136 ) 92 (356 ) Total income tax expense (benefit) $ 508 $ 839 $ 67 The following table presents a reconciliation of the U.S. statutory income tax rate to our effective tax rate based on income before income tax expense for the periods indicated: Years Ended December 31, 2018 2017 2016 U.S. federal income tax rate 21.0 % 35.0 % 35.0 % Changes from statutory rate: State taxes, net of federal benefit 3.1 2.0 2.1 Tax-exempt income (2.0 ) (4.3 ) (5.9 ) Business tax credits (1) (4.1 ) (3.7 ) (10.5 ) Foreign tax differential (0.6 ) (7.2 ) (7.4 ) Transition tax — 15.2 — Deferred tax revaluation (1.0 ) (6.8 ) — Foreign designated earnings — (0.7 ) (6.5 ) Foreign capital transactions — — (4.1 ) Litigation expense 0.3 — 1.3 Other, net (0.4 ) (1.6 ) (1.0 ) Effective tax rate 16.3 % 27.9 % 3.0 % (1) Business tax credits include low-income housing, production and investment tax credits. On December 22, 2017, the U.S. President signed into law the TCJA (H.R. 1), reducing the corporate income tax rate from 35% to 21% and enacting a one-time transition tax on unremitted earnings of certain foreign subsidiaries. The TCJA also introduced the Global Intangible Low-Taxed Income (GILTI), a new minimum tax to be imposed on foreign subsidiary earnings and an alternative tax for excess base erosion payments. In applying the guidance in Staff Accounting Bulletin No. 118 (SAB 118), the 2017 income tax expense included an estimated deferred tax benefit of $197 million attributable to certain U.S. deferred tax assets and liabilities and a provisional $454 million liability attributable to the one-time transition tax on total post-1986 earnings and profits (E&P) of foreign subsidiaries previously deferred from U.S. income taxes. At December 31, 2018 , the accounting for income tax effects of the TCJA has been completed. The 2018 income tax expense included an additional deferred tax benefit of approximately $32 million related to the TCJA provisional estimate recorded in 2017 mainly attributable to the remeasurement of temporary differences. Our completed analysis of cumulative E&P did not result in a change in estimate for the transition tax liability. Beginning in 2018 , the TCJA subjects a U.S. shareholder to current tax on GILTI earned by certain foreign subsidiaries. We have elected to recognize the resulting tax on GILTI as a period expense in the period the tax is incurred. As such, we have included an estimate of this liability in our estimated annual effective tax rate. This adjustment increased our effective tax rate by 0.2% in 2018 , which is reflected in the prior reconciliation table under "Other, net". Undistributed indefinitely reinvested earnings of certain foreign subsidiaries amounted to approximately $3.8 billion at December 31, 2018. As a result, no provision has been recorded for state and local or foreign withholding income taxes. If a distribution were to occur, we would be subject to state, local and to foreign withholding tax. It is expected that any distribution will be exempt from federal income tax. Although the foreign withholding tax is generally creditable against U.S. federal income tax, certain credit utilization limitations may result in a net cost. The following table presents significant components of our gross deferred tax assets and gross deferred tax liabilities as of the dates indicated: December 31, (In millions) 2018 2017 Deferred tax assets: Unrealized losses on investment securities, net $ 146 $ 17 Deferred compensation 134 159 Pension plan 55 82 Accrued expenses 156 132 Foreign currency translation 50 18 General business credit 274 231 NOL and other carryforwards 153 101 Other — 27 Total deferred tax assets 968 767 Valuation allowance for deferred tax assets (138 ) (88 ) Deferred tax assets, net of valuation allowance $ 830 $ 679 Deferred tax liabilities: Leveraged lease financing $ — $ 184 Fixed and intangible assets 744 755 Non-U.S. earnings — 6 Investment basis differences 229 172 Other 11 $ — Total deferred tax liabilities $ 984 $ 1,117 The table below summarizes the deferred tax assets and related valuation allowances recognized as of December 31, 2018 : (In millions) Deferred Tax Asset Valuation Allowance Expiration General business Credits $ 274 $ — 2035-2038 NOLs - Non-U.S. 55 (41 ) 2019-2028, None Other Carryforwards 88 (88 ) 2037-2039 /None NOLs - State 11 (9 ) 2019-2036 Management considers the valuation allowance adequate to reduce the total deferred tax assets to an aggregate amount that will more likely than not be realized. Management has determined that a valuation allowance is not required for the remaining deferred tax assets because it is more likely than not that there is sufficient taxable income of the appropriate nature within the carryforward periods to realize these assets. At December 31, 2018 , 2017 and 2016 , the gross unrecognized tax benefits, excluding interest, were $108 million , $94 million and $71 million , respectively. Of this, the amounts that would reduce the effective tax rate, if recognized, are $100 million , $87 million and $63 million , respectively. The reduction in the effective tax rate includes the federal benefit for unrecognized state tax benefits. The following table presents activity related to unrecognized tax benefits as of the dates indicated: December 31, (In millions) 2018 2017 2016 Beginning balance $ 94 $ 71 $ 63 Decrease related to agreements with tax authorities (40 ) (14 ) (13 ) Increase related to tax positions taken during current year 12 26 7 Increase related to tax positions taken during prior years 44 11 14 Decreases related to a lapse of the applicable statute of limitations (2 ) — — Ending balance $ 108 $ 94 $ 71 It is reasonably possible that of the $108 million of unrecognized tax benefits as of December 31, 2018 , up to $25 million could decrease within the next 12 months due to the resolution of various audits. Management believes that we have sufficient accrued liabilities as of December 31, 2018 for tax exposures and related interest expense. Income tax expense included related interest and penalties of approximately $1 million and $3 million in 2018 and 2017 , respectively. Total accrued interest and penalties were approximately $8 million , $8 million and $5 million as of December 31, 2018 , 2017 and 2016 , respectively. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, (Dollars in millions, except per share amounts) 2018 2017 2016 Net income $ 2,593 $ 2,156 $ 2,138 Less: Preferred stock dividends (188 ) (182 ) (173 ) Dividends and undistributed earnings allocated to participating securities (1) (1 ) (2 ) (2 ) Net income available to common shareholders $ 2,404 $ 1,972 $ 1,963 Average common shares outstanding (In thousands): Basic average common shares 371,983 374,793 391,485 Effect of dilutive securities: equity-based awards 4,493 5,420 4,605 Diluted average common shares 376,476 380,213 396,090 Anti-dilutive securities (2) 1,011 188 2,143 Earnings per common share: Basic $ 6.46 $ 5.26 $ 5.01 Diluted (3) 6.39 5.19 4.96 (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. Additional information about equity-based awards is provided in Note 18 . (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 | 12 Months Ended |
Dec. 31, 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. Investment Servicing provides services for U.S. mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations and endowments worldwide. Products include: custody; product and participant level accounting; daily pricing and administration; master trust and master custody; depotbank services (a fund oversight role created by regulation); record-keeping; cash management; foreign exchange, brokerage and other trading services; securities finance; our enhanced custody product, which integrates principal securities lending and custody; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; performance, risk and compliance analytics; and financial data management to support institutional investors. New products and services resulting from our acquisition of Charles River Development on October 1, 2018 include: portfolio modeling and construction; trade order management; investment risk and compliance; and wealth management solutions. Investment Management , through State Street Global Advisors, provides a broad range of investment management strategies and products for our clients. Our investment management strategies and products span the risk/reward spectrum, including core and enhanced indexing, multi-asset strategies, active quantitative and fundamental active capabilities and alternative investment strategies. Our AUM is currently primarily weighted to indexed strategies. In addition, we provide a breadth of services and solutions, including environmental, social and governance investing, defined benefit and defined contribution and OCIO. State Street Global Advisors is also a provider of ETFs, including the SPDR ® ETF brand. Our investment servicing strategy is to focus on total client relationships and the full integration of our products and services across our client base through cross-selling opportunities. In general, our clients will use a combination of services, depending on their needs, rather than one product or service. For instance, a custody client may purchase securities finance and cash management services from different business units. Products and services that we provide to our clients are parts of an integrated offering to these clients. We price our products and services on the basis of overall client relationships and other factors; as a result, revenue may not necessarily reflect the stand-alone market price of these products and services within the business lines in the same way it would for separate business entities. Our servicing and management fee revenue from the Investment Servicing and Investment Management business lines, including foreign exchange trading services and securities finance activities, represents approximately 75% to 80% of our consolidated total revenue. The remaining 20% to 25% is composed of processing fees and other revenue, including Charles River Development, as well as NII, which is largely generated by our investment of client deposits, short-term borrowings and long-term debt in a variety of assets, and net gains (losses) related to investment securities. These other revenue types are generally fully allocated to, or reside in, Investment Servicing and Investment Management. Revenue and expenses are directly charged or allocated to our lines of business through management information systems. Assets and liabilities are allocated according to policies that support management’s strategic and tactical goals. Capital is allocated based on the relative risks and capital requirements inherent in each business line, along with management judgment. Capital allocations may not be representative of the capital that might be required if these lines of business were separate business entities. The following is a summary of our line of business results for the periods indicated. The “Other” column for the year ended December 31, 2018 included net costs of $398 million composed of the following: • Net repositioning charges related to organizational changes and management streamlining of $300 million ; • Business exit costs of $24 million ; • Legal and related expenses of $50 million ; and • Net acquisition and restructuring costs of $24 million . The "Other" column for the year ended December 31, 2017 included net acquisition and restructuring costs of $266 million . The “Other” column for the year ended December 31, 2016 included net costs of $199 million composed of the following: • Net acquisition and restructuring costs of $209 million ; and • Net severance costs associated with staffing realignment of $10 million . The following is a summary of our line of business results for the periods indicated. The amounts in the “Other” columns were not allocated to our business lines. Prior reported results reflect reclassifications, for comparative purposes, related to management changes in methodologies associated with allocations of revenue and expenses to lines of business in 2018 . Years Ended December 31, Investment Investment (1) Other Total (Dollars in millions) 2018 2017 2016 2018 2017 2016 2018 2017 2016 2018 2017 2016 Servicing fees $ 5,429 $ 5,365 $ 5,073 $ — $ — $ — $ (8 ) $ — $ — $ 5,421 $ 5,365 $ 5,073 Management fees (1) — — — 1,851 1,616 1,292 — — — 1,851 1,616 1,292 Foreign exchange trading services (1) 1,071 999 1,038 130 72 61 — — — 1,201 1,071 1,099 Securities finance 543 606 562 — — — — — — 543 606 562 Processing fees and other (2) 443 336 203 (5 ) 7 (29 ) — — — 438 343 174 Total fee revenue (1)(2) 7,486 7,306 6,876 1,976 1,695 1,324 (8 ) — — 9,454 9,001 8,200 Net interest income 2,691 2,309 2,081 (20 ) (5 ) 3 — — — 2,671 2,304 2,084 Gains (losses) related to investment securities, net 6 (39 ) 7 — — — — — — 6 (39 ) 7 Total revenue (1)(2) 10,183 9,576 8,964 1,956 1,690 1,327 (8 ) — — 12,131 11,266 10,291 Provision for loan losses 15 2 10 — — — — — — 15 2 10 Total expenses (1)(2) 7,081 6,717 6,660 1,544 1,286 1,218 390 266 199 9,015 8,269 8,077 Income before income tax expense $ 3,087 $ 2,857 $ 2,294 $ 412 $ 404 $ 109 $ (398 ) $ (266 ) $ (199 ) $ 3,101 $ 2,995 $ 2,204 Pre-tax margin 30 % 30 % 26 % 21 % 24 % 8 % 26 % 27 % 21 % Average assets (in billions) $ 220.2 $ 214.0 $ 225.3 $ 3.2 $ 5.4 $ 4.4 $ 223.4 $ 219.4 $ 229.7 (1) The new revenue recognition standard contributed approximately $248 million in Investment Management total revenue, including approximately $190 million in management fees and $58 million in foreign exchange trading services, and $248 million in Investment Management total expenses for 2018 compared to 2017. (2) Investment Servicing includes results from our acquisition of Charles River Development on October 1, 2018, which is described in Note 1. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 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. Further discussion of our adoption, including the impact on our consolidated financial statements, is provided in Note 1. 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/or 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 we control those services and is deemed to be a principal in such arrangements . Foreign exchange 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 State Street Global Advisors 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. Revenue related to the front office solutions provided by Charles River Development is primarily driven by the sale of software to be installed on premise and Software as a Service (SaaS) arrangements, where the customer does not take possession of the software. Revenue for a sale of software to be installed on premise is recognized at a point in time when the customer benefits from obtaining access to and use of the software license. Revenue for a SaaS related arrangement is recognized over time as services are provided. Investment Management Revenue from contracts with customers related to investment management, investment research and investment advisory services provided through State Street Global Advisors 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 State Street Global Advisors 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. The amounts in the “Other” columns were not allocated to our business lines. Year Ended December 31, 2018 Investment Servicing Investment Management Other Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2018 Servicing fees $ 5,429 $ — $ 5,429 $ — $ — $ — $ (8 ) $ — $ (8 ) $ 5,421 Management fees — — — 1,851 — 1,851 — — — 1,851 Foreign exchange trading services 361 710 1,071 130 — 130 — — — 1,201 Securities finance 308 235 543 — — — — — — 543 Processing fees and other 209 234 443 — (5 ) (5 ) — — — 438 Total fee revenue 6,307 1,179 7,486 1,981 (5 ) 1,976 (8 ) — (8 ) 9,454 Net interest income — 2,691 2,691 — (20 ) (20 ) — — — 2,671 Gains (losses) related to investment securities, net — 6 6 — — — — — — 6 Total revenue $ 6,307 $ 3,876 $ 10,183 $ 1,981 $ (25 ) $ 1,956 $ (8 ) $ — $ (8 ) $ 12,131 Contract balances and contract costs A s of December 31, 2018 and December 31, 2017 , net receivables of $2.7 billion and $2.6 billion , respectively, 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 and billing is generally performed monthly; therefore, we do not have 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 | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, 2018 2017 2016 (In millions) Non-U.S. (1) U.S. Total Non-U.S. (1) U.S. Total Non-U.S. (1) U.S. Total Total revenue $ 5,178 $ 6,953 $ 12,131 $ 4,734 $ 6,532 $ 11,266 $ 4,419 $ 5,872 $ 10,291 Income before income taxes 1,664 1,437 3,101 1,230 1,765 2,995 1,047 1,157 2,204 (1) Geographic mix is generally based on the domicile of the entity servicing the funds and is not necessarily representative of the underlying asset mix. Non-U.S. assets were $81.7 billion and $82.1 billion as of December 31, 2018 and 2017 , respectively. |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Financial Statements | Parent Company Financial Statements The following tables present the financial statements of the Parent Company without consolidation of its banking and non-banking subsidiaries, as of and for the years indicated: Statement of Income - Parent Company Years Ended December 31, (In millions) 2018 2017 2016 Cash dividends from consolidated banking subsidiary $ 785 $ 2,224 $ 640 Cash dividends from consolidated non-banking subsidiaries and unconsolidated entities 41 12 75 Other, net 58 127 92 Total revenue 884 2,363 807 Interest expense 381 297 249 Other expenses 162 94 107 Total expenses 543 391 356 Income tax (benefit) (127 ) (86 ) (47 ) Income before equity in undistributed income of consolidated subsidiaries and unconsolidated entities 468 2,058 498 Equity in undistributed income of consolidated subsidiaries and unconsolidated entities: Consolidated banking subsidiary 1,944 (1 ) 1,624 Consolidated non-banking subsidiaries and unconsolidated entities 181 99 16 Net income $ 2,593 $ 2,156 $ 2,138 Statement of Condition - Parent Company As of December 31, (In millions) 2018 2017 Assets: Interest-bearing deposits with consolidated banking subsidiary $ 486 $ 532 Trading account assets 357 361 Investment securities available-for-sale 224 43 Investments in subsidiaries: Consolidated banking subsidiary 25,966 23,033 Consolidated non-banking subsidiaries 6,726 6,762 Unconsolidated entities 106 63 Notes and other receivables from: Consolidated banking subsidiary 64 273 Consolidated non-banking subsidiaries and unconsolidated entities 2,337 2,843 Other assets 96 263 Total assets $ 36,362 $ 34,173 Liabilities: Accrued expenses and other liabilities $ 685 $ 917 Long-term debt 10,940 10,986 Total liabilities 11,625 11,903 Shareholders’ equity 24,737 22,270 Total liabilities and shareholders’ equity $ 36,362 $ 34,173 Statement of Cash Flows - Parent Company Years Ended December 31, (In millions) 2018 2017 2016 Net cash provided by operating activities $ 2,250 $ 2,047 $ 417 Investing Activities: Net decrease (increase) in interest-bearing deposits with consolidated banking subsidiary 46 3,103 2,100 Purchases of available-for-sale securities (224 ) — — Investments in consolidated banking and non-banking subsidiaries (4,883 ) (7,672 ) (7,600 ) Sale or repayment of investment in consolidated banking and non-banking subsidiaries 2,472 4,216 6,703 Business acquisitions — — (395 ) Net increase in investments in unconsolidated affiliates — 172 — Net cash (used in) provided by investing activities (2,589 ) (181 ) 808 Financing Activities: Proceeds from issuance of long-term debt, net of issuance costs 996 748 1,492 Payments for long-term debt (1,000 ) (450 ) (1,000 ) Proceeds from issuance of preferred stock, net of issuance costs 495 — 493 Proceeds from issuance of common stock, net of issuance costs 1,150 — — Repurchases of common stock (350 ) (1,292 ) (1,365 ) Repurchases of common stock for employee tax withholding (124 ) (104 ) (122 ) Payments for cash dividends (828 ) (768 ) (723 ) Net cash provided (used in) financing activities 339 (1,866 ) (1,225 ) Net change — — — Cash and due from banks at beginning of year — — — Cash and due from banks at end of year $ — $ — $ — |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 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, including our principal banking subsidiary, State Street Bank. We have two lines of business: Investment Servicing provides a suite of related products and services including: custody; product and participant level accounting; daily pricing and administration; master trust and master custody; depotbank services (a fund oversight role created by regulation); record-keeping; cash management; foreign exchange, brokerage and other trading services; securities finance; our enhanced custody product, which integrates principal securities lending and custody; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; performance, risk and compliance analytics; and financial data management to support institutional investors. New products and services resulting from our acquisition of Charles River Development on October 1, 2018 include: portfolio modeling and construction, trade order management, investment risk and compliance and wealth management solutions. Investment Management , through State Street Global Advisors, provides a broad range of investment management strategies and products for our clients. Our investment management strategies and products span the risk/reward spectrum, including core and enhanced indexing, multi-asset strategies, active quantitative and fundamental active capabilities and alternative investment strategies. Our AUM is currently primarily weighted to indexed strategies. In addition, we provide a breadth of services and solutions, including environmental, social and governance investing, defined benefit and defined contribution and OCIO. State Street Global Advisors is also a provider of ETFs, including the SPDR ® ETF brand. |
Consolidation | Consolidation Our consolidated financial statements include the accounts of the Parent Company and its majority- and wholly-owned and otherwise controlled subsidiaries, including State Street Bank. All material inter-company transactions and balances have been eliminated. Certain previously reported amounts have been reclassified to conform to current-year presentation. We consolidate subsidiaries in which we exercise control. Investments in unconsolidated subsidiaries, recorded in other assets, generally are accounted for under the equity method of accounting if we have the ability to exercise significant influence over the operations of the investee. For investments accounted for under the equity method, our share of income or loss is recorded in processing fees and other revenue in our consolidated statement of income. Investments not meeting the criteria for equity-method treatment are measured at fair value through earnings, except for investments where a fair market value is not readily available, which are accounted for under the cost method of accounting. |
Use of Estimates | Use of Estimates 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. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of our operations with functional currencies other than the U.S. dollar are translated at month-end exchange rates, and revenue and expenses are translated at rates that approximate average monthly exchange rates. Gains or losses from the translation of the net assets of subsidiaries with functional currencies other than the U.S. dollar, net of related taxes, are recorded in AOCI, a component of shareholders’ equity. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the consolidated statement of cash flows, cash and cash equivalents are defined as cash and due from banks. |
Interest Bearing Deposits With Banks | Interest-Bearing Deposits with Banks Interest-bearing deposits with banks generally consist of highly liquid, short-term investments maintained at the Federal Reserve Bank and other non-U.S. central banks with original maturities at the time of purchase of one month or less. |
Securities Purchased Under Resale Agreements and Securities Sold Under Repurchase Agreements | Securities Purchased Under Resale Agreements and Securities Sold Under Repurchase Agreements Securities purchased under resale agreements and sold under repurchase agreements are treated as collateralized financing transactions, and are recorded in our consolidated statement of condition at the amounts at which the securities will be subsequently resold or repurchased, plus accrued interest. Our policy is to take possession or control of securities underlying resale agreements either directly or through agent banks, allowing borrowers the right of collateral substitution and/or short-notice termination. We revalue these securities daily to determine if additional collateral is necessary from the borrower to protect us against credit exposure. We can use these securities as collateral for repurchase agreements. For securities sold under repurchase agreements collateralized by our investment securities portfolio, the dollar value of the securities remains in investment securities in our consolidated statement of condition. Where a master netting agreement exists or both parties are members of a common clearing organization, resale and repurchase agreements with the same counterparty or clearing house and maturity date are recorded on a net basis. |
Fee and Net Interest Income | Fee and Net Interest Income The majority of fees from investment servicing, investment management, securities finance, trading services and certain types of processing fees and other revenue are recorded in our consolidated statement of income based on the consideration specified in contracts with our customers, and excludes taxes collected from customers subsequently remitted to governmental authorities. We recognize revenue as the services are performed or at a point in time depending on the nature of the services provided. Payments made to third party service providers are generally recognized on a gross basis when we control those services and are deemed to be the principal. Additional information about revenue from contracts with customers is provided in Note 25 . Interest income on interest-earning assets and interest expense on interest-bearing liabilities are recorded in our consolidated statement of income as components of NII, and are generally based on the effective yield of the related financial asset or liability. |
Recent Accounting Developments | Recent Accounting Developments Relevant standards that were recently issued but not yet adopted as of December 31, 2018: Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2016-02, Leases (Topic 842) and relevant amendments 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 have adopted the new standard as of January 1, 2019. Upon adoption of the standard, we recognized the required right-of-use assets of approximately $0.9 billion and lease liabilities of approximately $1.1 billion. This increase largely relates to the present value of future minimum lease payments due under existing operating leases of office space. No material changes are expected to the recognition of lease expenses in the Consolidated Statement of Income. We adopted the standard by applying the transition method whereby comparative periods will not be restated, and no material adjustment to retained earnings was required. For adoption we elected the standard’s package of three practical expedients, and (1) have not reassessed whether any expired or existing contracts are or contain leases, (2) have not reassessed the lease classification for any expired or existing leases, and (3) have not reassessed initial direct costs for any existing leases. In addition, we made an accounting policy election not to apply the recognition requirements to short-term leases, and have elected the practical expedient to not separate lease and nonlease components. 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 continuing to assess the impact of the standard on our consolidated financial statements. We have established a steering committee to provide cross-functional governance over the project plan and key decisions, and are continuing to develop key accounting policies, assess existing credit loss models and processes against the new guidance and address data requirements and sources to ensure that the expected credit losses are calculated in accordance with the standard. We continue to develop and test new and modified credit loss models and based on our analysis to date, we expect the recognition of 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 our portfolio and the macroeconomic factors on the date of adoption. We plan to adopt the new guidance on January 1, 2020. 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. The standard does not impact debt securities which are held at a discount. The guidance requires a cumulative effect of initial application to be recognized in retained earnings at the beginning of the period of adoption. January 1, 2019 We have adopted the new standard as of January 1, 2019. No material adjustment to retained earnings was required. 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 We have adopted the new standard as of January 1, 2019. Upon adoption of the standard we reclassified approximately $84 million of stranded tax effects from accumulated other comprehensive income to retained earnings. Relevant standards that were recently issued but not yet adopted as of December 31, 2018 (continued): Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement The standard eliminates, amends and adds disclosure requirements for fair value measurements. January 1, 2020, early adoption permitted, including partial early adoption. Provisions that eliminate or amend disclosures can be early adopted without early adopting the new disclosure requirements. We have elected to early adopt the provisions of the new standard that eliminate or amend disclosures as of December 31, 2018 and our disclosures were modified accordingly. The provisions of the new standard that add disclosures will be adopted upon the effective date of the standard. ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) This standard addresses accounting for fees paid by a customer for implementation, set-up and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor, i.e., a service contract. The new guidance aligns treatment for capitalization of implementation costs with guidance on internal-use software. January 1, 2020, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. Relevant standards that were adopted during the year ended December 31, 2018: We adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), effective 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 condition, 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 foreign exchange trading services revenue, are now reported on a gross basis in expenses. For the year ended December 31, 2018 , both revenues and expenses increased by approximately $319 million , primarily due to the updated principal and agent guidance. The revenue impact was approximately $190 million in management fees, $58 million in foreign exchange trading services and $71 million across other revenue lines, and th e expense impact was approximatel y $183 million in other expe nses, $106 million in transaction processing and $30 million across other expense line items . Adoption of the standard had no impact on cash from or used in operating, finan cing, or investing activities in our consolidated statements of cash flows. We adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, effective October 1, 2018. 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. The guidance permits a one-time reclassification of debt securities eligible to be hedged under the "last-of-layer" method from HTM to AFS upon adoption. In the fourth quarter of 2018, we elected to make a one-time transfer of qualifying securities with a total book value of approximately $1.2 billion . We have applied certain aspects of the updated standard to existing hedges as permitted by the ASU, however, the adoption did not have a material impact on our financial statements. 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 classified as AFS to 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 December 31, 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. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to valuation methods using significant unobservable inputs (level 3). If the inputs used to measure a financial asset or liability cross different levels of the hierarchy, categorization is based on the lowest-level input that is significant to the fair-value measurement. Management's assessment of the significance of a particular input to the overall fair-value measurement of a financial asset or liability requires judgment, and considers factors specific to that asset or liability. The three levels of the valuation hierarchy are described below. Level 1. Financial assets and liabilities with values based on unadjusted quoted prices for identical assets or liabilities in an active market. Our level 1 financial assets and liabilities primarily include positions in U.S. government securities and highly liquid U.S. and non-U.S. government fixed-income securities. Our level 1 financial assets also include actively traded exchange-traded equity securities. Level 2. Financial assets and liabilities with values based on quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include the following: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in non-active markets; • Pricing models whose inputs are observable for substantially the full term of the asset or liability; and • Pricing models whose inputs are derived principally from, or corroborated by, observable market information through correlation or other means for substantially the full term of the asset or liability. Our level 2 financial assets and liabilities primarily include non-U.S. debt securities carried in trading account assets and various types of fixed-income AFS investment securities, as well as various types of foreign exchange and interest rate derivative instruments. Fair value for our AFS investment securities categorized in level 2 is measured primarily using information obtained from independent third parties. This third-party information is subject to review by management as part of a validation process, which includes obtaining an understanding of the underlying assumptions and the level of market participant information used to support those assumptions. In addition, management compares significant assumptions used by third parties to available market information. Such information may include known trades or, to the extent that trading activity is limited, comparisons to market research information pertaining to credit expectations, execution prices and the timing of cash flows and, where information is available, back-testing. Derivative instruments categorized in level 2 predominantly represent foreign exchange contracts used in our trading activities, for which fair value is measured using discounted cash-flow techniques, with inputs consisting of observable spot and forward points, as well as observable interest rate curves. With respect to derivative instruments, we evaluate the impact on valuation of the credit risk of our counterparties. We consider factors such as the likelihood of default by our counterparties, our current and potential future net exposures and remaining maturities in determining the fair value. Valuation adjustments associated with derivative instruments were not material to those instruments for the years ended December 31, 2018 and 2017 . Level 3. Financial assets and liabilities with values based on prices or valuation techniques that require inputs that are both unobservable in the market and significant to the overall measurement of fair value. These inputs reflect management's judgment about the assumptions that a market participant would use in pricing the financial asset or liability, and are based on the best available information, some of which may be internally developed. The following provides a more detailed discussion of our financial assets and liabilities that we may categorize in level 3 and the related valuation methodology. • The fair value of our investment securities categorized in level 3 is measured using information obtained from third-party sources, typically non-binding broker/dealer quotes, or through the use of internally-developed pricing models. Management has evaluated its methodologies used to measure fair value, and has considered the level of observable market information to be insufficient to categorize the securities in level 2. • The fair value of certain foreign exchange contracts, primarily options, is measured using an option-pricing model. Because of a limited number of observable transactions, certain model inputs are not observable, such as implied volatility surface, but are derived from observable market information. Our level 3 financial assets and liabilities are similar in structure and profile to our level 1 and level 2 financial instruments, but they trade in less liquid markets, and the measurement of their fair value is inherently less observable. 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Other Significant Policies | The following table identifies our other significant accounting policies and the note and page where a detailed description of each policy can be found: Fair Value Note 2 Page Investment Securities Note 3 Page Loans and Leases Note 4 Page Goodwill and Other Intangible Assets Note 5 Page Derivative Financial Instruments Note 10 Page Offsetting Arrangements Note 11 Page Contingencies Note 13 Page Variable Interest Entities Note 14 Page Regulatory Capital Note 16 Page Equity-Based Compensation Note 18 Page Income Taxes Note 22 Page Earnings Per Common Share Note 23 Page Revenue from Contracts with Customers Note 25 Page |
Recent Accounting Developments | Recent Accounting Developments Relevant standards that were recently issued but not yet adopted as of December 31, 2018: Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2016-02, Leases (Topic 842) and relevant amendments 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 have adopted the new standard as of January 1, 2019. Upon adoption of the standard, we recognized the required right-of-use assets of approximately $0.9 billion and lease liabilities of approximately $1.1 billion. This increase largely relates to the present value of future minimum lease payments due under existing operating leases of office space. No material changes are expected to the recognition of lease expenses in the Consolidated Statement of Income. We adopted the standard by applying the transition method whereby comparative periods will not be restated, and no material adjustment to retained earnings was required. For adoption we elected the standard’s package of three practical expedients, and (1) have not reassessed whether any expired or existing contracts are or contain leases, (2) have not reassessed the lease classification for any expired or existing leases, and (3) have not reassessed initial direct costs for any existing leases. In addition, we made an accounting policy election not to apply the recognition requirements to short-term leases, and have elected the practical expedient to not separate lease and nonlease components. 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 continuing to assess the impact of the standard on our consolidated financial statements. We have established a steering committee to provide cross-functional governance over the project plan and key decisions, and are continuing to develop key accounting policies, assess existing credit loss models and processes against the new guidance and address data requirements and sources to ensure that the expected credit losses are calculated in accordance with the standard. We continue to develop and test new and modified credit loss models and based on our analysis to date, we expect the recognition of 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 our portfolio and the macroeconomic factors on the date of adoption. We plan to adopt the new guidance on January 1, 2020. 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. The standard does not impact debt securities which are held at a discount. The guidance requires a cumulative effect of initial application to be recognized in retained earnings at the beginning of the period of adoption. January 1, 2019 We have adopted the new standard as of January 1, 2019. No material adjustment to retained earnings was required. 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 We have adopted the new standard as of January 1, 2019. Upon adoption of the standard we reclassified approximately $84 million of stranded tax effects from accumulated other comprehensive income to retained earnings. Relevant standards that were recently issued but not yet adopted as of December 31, 2018 (continued): Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement The standard eliminates, amends and adds disclosure requirements for fair value measurements. January 1, 2020, early adoption permitted, including partial early adoption. Provisions that eliminate or amend disclosures can be early adopted without early adopting the new disclosure requirements. We have elected to early adopt the provisions of the new standard that eliminate or amend disclosures as of December 31, 2018 and our disclosures were modified accordingly. The provisions of the new standard that add disclosures will be adopted upon the effective date of the standard. ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) This standard addresses accounting for fees paid by a customer for implementation, set-up and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor, i.e., a service contract. The new guidance aligns treatment for capitalization of implementation costs with guidance on internal-use software. January 1, 2020, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. In addition, the following presents the effect of the changes on the financial statement line items for prior periods presented: Consolidated Statement of Condition Impact December 31, 2018 December 31, 2017 (Dollars in millions) Originally Reported Change in Accounting Revised Originally Reported Change in Accounting Revised Assets: Other assets $ 34,434 $ (30 ) $ 34,404 $ 31,018 $ (33 ) $ 30,985 Total assets 244,626 (30 ) 244,596 238,425 (33 ) 238,392 Liabilities and stockholders' equity: Accrued expenses and other liabilities $ 24,209 $ 23 $ 24,232 $ 15,606 $ 14 $ 15,620 Retained earnings 20,606 (53 ) 20,553 18,856 (47 ) 18,809 Total liabilities and stockholders' equity 244,626 (30 ) 244,596 238,425 (33 ) 238,392 Consolidated Statement of Income Impact (Dollars in millions, except per share amounts, or where otherwise noted) 2016 Reported Change in Acctg 2016 Revised 2017 Reported Change in Acctg 2017 Revised 2018 Reported Change in Acctg Other Adj 2018 Revised Processing fees and other 90 84 174 247 96 343 289 102 47 438 Total fee revenue 8,116 84 8,200 8,905 96 9,001 9,305 102 47 9,454 Income tax expense (benefit) (22 ) 89 67 722 117 839 400 108 — 508 Net income $ 2,143 $ (5 ) $ 2,138 $ 2,177 $ (21 ) $ 2,156 $ 2,599 $ (6 ) $ — $ 2,593 Earnings per common share: Basic $ 5.03 $ (0.02 ) $ 5.01 $ 5.32 $ (0.06 ) $ 5.26 $ 6.48 $ (0.02 ) $ — $ 6.46 Diluted 4.97 (0.01 ) 4.96 5.24 (0.05 ) 5.19 6.40 (0.01 ) — 6.39 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 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 $ 34 $ — $ — $ 34 Non-U.S. government securities 146 179 — 325 Other — 501 — 501 Total trading account assets 180 680 — 860 AFS investment securities: U.S. Treasury and federal agencies: Direct obligations 1,039 — — 1,039 Mortgage-backed securities — 15,968 — 15,968 Total U.S. Treasury and federal agencies 1,039 15,968 — 17,007 Asset-backed securities: Student loans — 541 — 541 Credit cards — 583 — 583 Collateralized loan obligations — — 593 593 Total asset-backed securities — 1,124 593 1,717 Non-U.S. debt securities: Mortgage-backed securities — 1,682 — 1,682 Asset-backed securities — 943 631 1,574 Government securities — 12,793 — 12,793 Other (2) — 6,544 58 6,602 Total non-U.S. debt securities — 21,962 689 22,651 State and political subdivisions — 1,918 — 1,918 Collateralized mortgage obligations — 195 2 197 Other U.S. debt securities — 1,658 — 1,658 Total AFS investment securities 1,039 42,825 1,284 45,148 Other assets: Derivative instruments: Foreign exchange contracts — 16,382 4 $ (11,210 ) 5,176 Interest rate contracts 13 — — — 13 Total derivative instruments 13 16,382 4 (11,210 ) 5,189 Other — 395 — — 395 Total assets carried at fair value $ 1,232 $ 60,282 $ 1,288 $ (11,210 ) $ 51,592 Liabilities: Accrued expenses and other liabilities: Derivative instruments: Foreign exchange contracts — 16,518 4 (11,564 ) 4,958 Interest rate contracts — 71 — — 71 Other derivative contracts — 214 — — 214 Total derivative instruments — 16,803 4 (11,564 ) 5,243 Total liabilities carried at fair value $ — $ 16,803 $ 4 $ (11,564 ) $ 5,243 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between us and the counterparty. Netting also reflects asset and liability reductions of $987 million and $1,341 million , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of December 31, 2018 , the fair value of other non-U.S. debt securities included $1,295 million of covered bonds and $1,331 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 Collateralized loan obligations — 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 us 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 years ended December 31, 2018 and 2017 , respectively. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the years ended December 31, 2018 and 2017 , transfers into level 3 were mainly related to certain CMO, MBS and ABS, including non-U.S. debt securities, for which fair value was measured using information obtained from third-party sources, including non-binding broker/dealer quotes. During the years ended December 31, 2018 and 2017 , transfers out of level 3 were mainly related to certain CMO, 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 Year Ended December 31, 2018 Fair Value as of Total Realized and Purchases Sales Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value as of December 31, 2018 (1) Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of December 31, 2018 (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: AFS Investment securities: Asset-backed securities: Collateralized loan obligations $ 1,358 $ 4 $ (7 ) $ 351 $ (636 ) $ (268 ) $ — $ (209 ) $ 593 Total asset-backed securities 1,358 4 (7 ) 351 (636 ) (268 ) — (209 ) 593 Non-U.S. debt securities: Mortgage-backed securities 119 — — — — — — (119 ) — Asset-backed securities 402 — (4 ) 495 (310 ) (66 ) 114 — 631 Other 204 — — 13 (59 ) (36 ) — (64 ) 58 Total non-U.S. debt securities 725 — (4 ) 508 (369 ) (102 ) 114 (183 ) 689 State and political subdivisions 43 — — — (37 ) (1 ) — (5 ) — Collateralized mortgage obligations — — — — — (6 ) 8 — 2 Total AFS investment securities 2,126 4 (11 ) 859 (1,042 ) (377 ) 122 (397 ) 1,284 Derivative instruments: Foreign exchange contracts 1 (3 ) — 6 — — — — 4 $ (3 ) Total derivative instruments 1 (3 ) — 6 — — — — 4 (3 ) Total assets carried at fair value $ 2,127 $ 1 $ (11 ) $ 865 $ (1,042 ) $ (377 ) $ 122 $ (397 ) $ 1,288 $ (3 ) (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 foreign exchange trading services. Fair Value Measurements Using Significant Unobservable Inputs Year Ended December 31, 2017 Fair Value as of December 31, 2016 Total Realized and Purchases Sales Settlements Transfers Transfers Fair Value as of December 31, 2017 (1) Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of December 31, 2017 (In millions) Recorded (1) Recorded (1) Assets: AFS Investment securities: U.S. Treasury and federal agencies: Mortgage-backed securities $ — $ — $ — $ — $ — $ — $ 25 $ (25 ) $ — Asset-backed securities: Student loans 97 — 1 200 — — — (298 ) — Other 905 3 — 1,035 (240 ) (620 ) 275 — 1,358 Total asset-backed securities 1,002 3 1 1,235 (240 ) (620 ) 275 (298 ) 1,358 Non-U.S. debt securities: Mortgage-backed securities — — (2 ) 119 — 2 — — 119 Asset-backed securities 32 1 — 370 (10 ) (11 ) 67 (47 ) 402 Other 248 — 1 5 (81 ) 31 — — 204 Total non-U.S. debt securities 280 1 (1 ) 494 (91 ) 22 67 (47 ) 725 State and political subdivisions 39 — 2 — — (3 ) 5 — 43 Collateralized mortgage obligations 16 — (1 ) 24 — — — (39 ) — Other U.S. debt securities — — — 19 (19 ) — — — — Total AFS investment securities 1,337 4 1 1,772 (350 ) (601 ) 372 (409 ) 2,126 Other assets: Derivative instruments: Foreign exchange contracts 8 (7 ) — 4 — (4 ) — — 1 $ (3 ) Total derivative instruments 8 (7 ) — 4 — (4 ) — — 1 (3 ) Total assets carried at fair value $ 1,345 $ (3 ) $ 1 $ 1,776 $ (350 ) $ (605 ) $ 372 $ (409 ) $ 2,127 $ (3 ) (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 foreign exchange trading services. |
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/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 December 31, 2018 As of December 31, 2017 Valuation Technique Significant Unobservable Input (1) As of December 31, 2018 As of December 31, 2017 Significant unobservable inputs readily available to State Street: Assets: Derivative Instruments, foreign exchange contracts $ 4 $ 1 Option model Volatility 11.4 % 7.2 % Total $ 4 $ 1 Liabilities: Derivative instruments, foreign exchange contracts $ 4 $ 1 Option model Volatility 11.4 % 7.2 % Total $ 4 $ 1 (1) Significant changes in these unobservable inputs may result in significant changes in fair value measurement of the derivative instrument. 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/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 December 31, 2018 As of December 31, 2017 Valuation Technique Significant Unobservable Input (1) As of December 31, 2018 As of December 31, 2017 Significant unobservable inputs readily available to State Street: Assets: Derivative Instruments, foreign exchange contracts $ 4 $ 1 Option model Volatility 11.4 % 7.2 % Total $ 4 $ 1 Liabilities: Derivative instruments, foreign exchange contracts $ 4 $ 1 Option model Volatility 11.4 % 7.2 % Total $ 4 $ 1 (1) Significant changes in these unobservable inputs may result in significant changes in fair value measurement of the derivative instrument. |
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) December 31, 2018 Financial Assets: Cash and due from banks $ 3,597 $ 3,597 $ 3,597 $ — $ — Interest-bearing deposits with banks 73,040 73,040 — 73,040 — Securities purchased under resale agreements 4,679 4,679 — 4,679 — Investment securities held-to-maturity 41,914 41,351 14,541 26,688 122 Net loans (excluding leases) (1) 25,722 25,561 — 24,648 913 Other (2) 8,500 8,500 — 8,500 — Financial Liabilities: Deposits: Non-interest-bearing $ 44,804 $ 44,804 $ — $ 44,804 $ — Interest-bearing - U.S. 66,235 66,235 — 66,235 — Interest-bearing - non-U.S. 69,321 69,321 — 69,321 — Securities sold under repurchase agreements 1,082 1,082 — 1,082 — Other short-term borrowings 3,092 3,092 — 3,092 — Long-term debt 11,093 11,048 — 10,865 183 Other (2) 8,500 8,500 — 8,500 — (1) Includes $10 million of loans classified as held-for-sale that were measured at fair value on a non-recurring basis as of December 31, 2018 . (2) Represents a portion of underlying client assets related to our enhanced custody business, which 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) | 12 Months Ended |
Dec. 31, 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: December 31, 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 $ 1,035 $ 4 $ — $ 1,039 $ 222 $ 2 $ 1 $ 223 Mortgage-backed securities 16,112 37 181 15,968 10,975 26 129 10,872 Total U.S. Treasury and federal agencies 17,147 41 181 17,007 11,197 28 130 11,095 Asset-backed securities: Student loans (1) 538 4 1 541 3,325 37 4 3,358 Credit cards 609 — 26 583 1,565 2 25 1,542 Collateralized loan obligations 594 1 2 593 1,440 7 — 1,447 Total asset-backed securities 1,741 5 29 1,717 6,330 46 29 6,347 Non-U.S. debt securities: Mortgage-backed securities 1,687 — 5 1,682 6,664 36 5 6,695 Asset-backed securities 1,580 — 6 1,574 2,942 5 — 2,947 Government securities 12,816 22 45 12,793 10,754 16 49 10,721 Other (2) 6,600 18 16 6,602 6,076 38 6 6,108 Total non-U.S. debt securities 22,683 40 72 22,651 26,436 95 60 26,471 State and political subdivisions (3) 1,905 20 7 1,918 8,929 245 23 9,151 Collateralized mortgage obligations 200 — 3 197 1,060 3 9 1,054 Other U.S. debt securities 1,683 1 26 1,658 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 $ 45,359 $ 107 $ 318 $ 45,148 $ 56,952 $ 437 $ 268 $ 57,121 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 14,794 $ — $ 199 $ 14,595 $ 17,028 $ — $ 143 $ 16,885 Mortgage-backed securities 21,647 24 518 21,153 16,651 22 225 16,448 Total U.S. Treasury and federal agencies 36,441 24 717 35,748 33,679 22 368 33,333 Asset-backed securities: Student loans (1) 3,191 35 10 3,216 3,047 32 9 3,070 Credit cards 193 — — 193 798 2 — 800 Other 1 — — 1 1 — — 1 Total asset-backed securities 3,385 35 10 3,410 3,846 34 9 3,871 Non-U.S. debt securities: Mortgage-backed securities 638 77 9 706 939 82 6 1,015 Asset-backed securities 223 — — 223 263 1 — 264 Government securities 358 1 — 359 474 2 — 476 Other 46 — — 46 48 — — 48 Total non-U.S. debt securities 1,265 78 9 1,334 1,724 85 6 1,803 Collateralized mortgage obligations 823 38 2 859 1,209 45 6 1,248 Total $ 41,914 $ 175 $ 738 $ 41,351 $ 40,458 $ 186 $ 389 $ 40,255 (1) Primarily comprised 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 December 31, 2018 and December 31, 2017 , the fair value of other non-U.S. debt securities included $1,295 million and $3,537 million , respectively, of covered bonds and $1,331 million and $1,885 million , respectively, of corporate bonds. (3) As of December 31, 2018 and December 31, 2017 , the fair value of state and political subdivisions includes securities in trusts of $1,052 million and $1,247 million , respectively. Additional information about these trusts is provided in Note 14 . (4) As described in Note 1 to the consolidated financial statements in this Form 10-K, upon adoption of ASU 2016-01 in 2018, we reclassified money-market funds and equity securities classified as AFS to held at fair value through profit and loss in other assets. |
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 December 31, 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 $ 5,058 $ 21 $ 5,089 $ 160 $ 10,147 $ 181 Total U.S. Treasury and federal agencies 5,058 21 5,089 160 10,147 181 Asset-backed securities: Student loans 106 — 218 1 324 1 Credit cards 90 — 493 26 583 26 Collateralized loan obligations 548 2 — — 548 2 Total asset-backed securities 744 2 711 27 1,455 29 Non-U.S. debt securities: Mortgage-backed securities 1,407 4 118 1 1,525 5 Asset-backed securities 1,479 6 — — 1,479 6 Government securities 5,478 45 — — 5,478 45 Other 2,167 12 226 4 2,393 16 Total non-U.S. debt securities 10,531 67 344 5 10,875 72 State and political subdivisions 365 3 244 4 609 7 Collateralized mortgage obligations 181 3 14 — 195 3 Other U.S. debt securities 861 14 484 12 1,345 26 Total $ 17,740 $ 110 $ 6,886 $ 208 $ 24,626 $ 318 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 2,192 $ 45 $ 12,403 $ 154 $ 14,595 $ 199 Mortgage-backed securities 6,502 103 10,648 415 17,150 518 Total U.S. Treasury and federal agencies 8,694 148 23,051 569 31,745 717 Asset-backed securities: Student loans 481 4 536 6 1,017 10 Total asset-backed securities 481 4 536 6 1,017 10 Non-U.S. debt securities: Mortgage-backed securities 184 2 119 7 303 9 Total non-U.S. debt securities 184 2 119 7 303 9 Collateralized mortgage obligations 102 1 51 1 153 2 Total $ 9,461 $ 155 $ 23,757 $ 583 $ 33,218 $ 738 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 December 31, 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. December 31, 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 $ 224 $ 815 $ — $ — $ 1,039 Mortgage-backed securities 101 802 1,884 13,181 15,968 Total U.S. Treasury and federal agencies 325 1,617 1,884 13,181 17,007 Asset-backed securities: Student loans 57 164 250 70 541 Credit cards 199 294 90 — 583 Collateralized loan obligations — 402 171 20 593 Total asset-backed securities 256 860 511 90 1,717 Non-U.S. debt securities: Mortgage-backed securities 139 769 176 598 1,682 Asset-backed securities 136 698 581 159 1,574 Government securities 3,439 6,409 2,945 — 12,793 Other 1,071 4,575 937 19 6,602 Total non-U.S. debt securities 4,785 12,451 4,639 776 22,651 State and political subdivisions 235 776 446 461 1,918 Collateralized mortgage obligations 2 — — 195 197 Other U.S. debt securities 141 1,219 298 — 1,658 Total $ 5,744 $ 16,923 $ 7,778 $ 14,703 $ 45,148 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 4,002 $ 10,737 $ 12 $ 43 $ 14,794 Mortgage-backed securities 33 127 1,697 19,790 21,647 Total U.S. Treasury and federal agencies 4,035 10,864 1,709 19,833 36,441 Asset-backed securities: Student loans 7 291 267 2,626 3,191 Credit cards 58 135 — — 193 Other — — — 1 1 Total asset-backed securities 65 426 267 2,627 3,385 Non-U.S. debt securities: Mortgage-backed securities 160 42 7 429 638 Asset-backed securities 96 127 — — 223 Government securities 243 115 — — 358 Other 46 — — — 46 Total non-U.S. debt securities 545 284 7 429 1,265 Collateralized mortgage obligations 1 318 15 489 823 Total $ 4,646 $ 11,892 $ 1,998 $ 23,378 $ 41,914 |
Schedule of Credit-Related Loss Activity Recognized in Earnings | The following tables present gross realized gains and losses from sales of AFS investment securities, and the components of net impairment losses included in net gains and losses related to investment securities for the periods indicated. Years Ended December 31, (In millions) 2018 2017 2016 Gross realized gains from sales of AFS investment securities $ 205 $ 74 $ 15 Gross realized losses from sales of AFS investment securities (196 ) (113 ) (5 ) Net impairment losses: Gross losses from OTTI (3 ) — (2 ) Losses reclassified (from) to other comprehensive income — — (1 ) Net impairment losses (1) (3 ) — (3 ) Gains (losses) related to investment securities, net $ 6 $ (39 ) $ 7 (1) Net impairment losses, recognized in our consolidated statement of income, were composed of the following: Impairment associated with expected credit losses $ — $ — $ (1 ) Impairment associated with adverse changes in timing of expected future cash flows (3 ) — (2 ) Net impairment losses $ (3 ) $ — $ (3 ) The following table presents a roll-forward with respect to net impairment losses that have been recognized in income for the periods indicated. Years Ended December 31, (In millions) 2018 2017 2016 Balance, beginning of period $ 77 $ 79 $ 105 Additions (1) : OTTI recognized 3 — 2 Deductions (2) : Realized losses on securities sold or matured (2 ) (2 ) (28 ) Balance, end of period $ 78 $ 77 $ 79 (1) Additions represent securities with a first time credit impairment realized or when a subsequent credit impairment has occurred. (2) Deductions represent impairments on securities that have been sold or matured, are required to be sold, or for which management intends to sell. |
Loans and Leases (Tables)
Loans and Leases (Tables) | 12 Months Ended |
Dec. 31, 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) December 31, 2018 December 31, 2017 Domestic: Commercial and financial: Loans to investment funds $ 15,050 $ 13,618 Senior secured bank loans 3,490 2,923 Loans to municipalities 902 2,105 Other 37 50 Commercial real estate 874 98 Lease financing (1) — 267 Total domestic 20,353 19,061 Non-U.S.: Commercial and financial: Loans to investment funds 4,505 3,213 Senior secured bank loans 931 624 Lease financing (1) — 396 Total non-U.S. 5,436 4,233 Total loans and leases 25,789 23,294 Allowance for loan and lease losses (67 ) (54 ) Loans and leases, net of allowance $ 25,722 $ 23,240 (1) Our leveraged lease portfolio was entirely sold off as of December 31, 2018. |
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: December 31, 2018 Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases (In millions) Investment grade (1) $ 19,599 $ 874 $ — $ 20,473 Speculative (2) 5,308 — — 5,308 Substandard (3) 8 — — 8 Total $ 24,915 $ 874 $ — $ 25,789 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 (4) 29 — — 29 Total $ 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 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) Substandard loans and leases consist of counterparties with well-defined weaknesses that jeopardize repayment with the possibility we will sustain some loss. (4) Special mention loans consist of counterparties with potential weaknesses that, if uncorrected, may result in deterioration of repayment prospects. |
Schedule Of Loans And Leases Receivable By Impairment Methodology | The following table presents our recorded investment in loans and leases, disaggregated based on our impairment methodology, as of the dates indicated: December 31, 2018 December 31, 2017 (In millions) Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases Commercial and Financial Commercial Real Estate Lease Financing Total Loans and Leases Loans and leases: Individually evaluated for impairment (1) $ 8 $ — $ — $ 8 $ — $ — $ — $ — Collectively evaluated for impairment 24,907 874 — 25,781 22,533 98 663 23,294 Total $ 24,915 $ 874 $ — $ 25,789 $ 22,533 $ 98 $ 663 $ 23,294 (1) As of December 31, 2018 , we had one loan for $8 million in the commercial and financial segment that was individually evaluated for impairment and deemed to be impaired. This loan was subsequently paid in full in January 2019. As of December 31, 2017 , there were no impaired loans. |
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: Years Ended December 31, (In millions) 2018 2017 2016 Allowance for loan and lease losses: Beginning balance $ 54 $ 53 $ 46 Provision for loan and lease losses (1) 15 2 10 Charge-offs (1) (2 ) (1 ) (3 ) Ending balance $ 67 $ 54 $ 53 (1) The provisions and charge-offs for loans and leases were primarily attributable to exposure to senior secured loans to non-investment grade borrowers, purchased in connection with our loans. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 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 (1) 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 Acquisitions (1) 1,512 — 1,512 Foreign currency translation (84 ) (4 ) (88 ) Ending balance December 31, 2018 $ 7,180 $ 266 $ 7,446 (1) Investment Servicing includes our acquisition of Charles River Development on October 1, 2018, which is described in Note 1. |
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 (1) 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 71 1 72 Ending balance December 31, 2017 1,432 181 1,613 Acquisitions (1) 1,007 — 1,007 Amortization (196 ) (30 ) (226 ) Foreign currency translation (25 ) — (25 ) Ending balance December 31, 2018 $ 2,218 $ 151 $ 2,369 (1) Investment Servicing includes our acquisition of Charles River Development on October 1, 2018, which is described in Note 1. 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: December 31, 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 $ 3,262 $ (1,605 ) $ 1,657 $ 2,669 $ (1,470 ) $ 1,199 Technology 389 (49 ) 340 47 (40 ) 7 Core deposits 676 (350 ) 326 686 (320 ) 366 Other 103 (57 ) 46 95 (54 ) 41 Total $ 4,430 $ (2,061 ) $ 2,369 $ 3,497 $ (1,884 ) $ 1,613 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Expected future amortization expense for other intangible assets recorded as of December 31, 2018 is as follows: (In millions) Future Amortization Years Ended December 31, 2019 $ 245 2020 243 2021 236 2022 233 2023 232 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets [Abstract] | |
Components of Other Assets | The following table presents the components of other assets as of the dates indicated: December 31, (In millions) 2018 2017 Securities borrowed (1) $ 19,575 $ 19,404 Derivative instruments, net 5,189 4,013 Bank-owned life insurance 3,323 3,242 Investments in joint ventures and other unconsolidated entities (2) 2,882 2,226 Collateral, net 1,354 473 Receivable for securities settlement 531 188 Prepaid expenses 493 364 Accounts receivable 343 348 Income taxes receivable 129 97 Deferred tax assets, net of valuation allowance (3) 113 113 Deposits with clearing organizations 58 120 Other 414 397 Total $ 34,404 $ 30,985 (1) Refer to Note 11 , 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. |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | The following table presents information about these U.S. government securities and the carrying value of the related repurchase agreements, including accrued interest, as of December 31, 2018 . U.S. Government Securities Sold Repurchase Agreements (1) (In millions) Amortized Cost Fair Value Amortized Cost Overnight maturity $ 1,127 $ 1,100 $ 1,082 (1) Collateralized by investment securities. The following table presents information with respect to the amounts outstanding and weighted-average interest rates of the primary components of our short-term borrowings as of and for the years ended December 31 : 2018 2017 2016 2018 2017 2016 2018 2017 2016 (Dollars in millions) Securities Sold Under Repurchase Agreements Tax-Exempt Investment Program Other Balance as of December 31 $ 1,082 $ 2,842 $ 4,400 $ 931 $ 1,078 $ 1,158 $ 2,000 $ — $ — Maximum outstanding as of any month-end 3,441 4,302 5,572 1,078 1,158 1,726 2,000 — 29 Average outstanding during the year 2,048 3,683 4,113 1,023 1,127 1,512 nm 1 31 Weighted-average interest rate as of year-end 1.38 % .03 % .04 % 1.74 % 1.45 % .67 % 2.68 % .00 % .00 % Weighted-average interest rate during the year .62 .05 .02 1.46 .79 .36 nm .00 .17 nm Not meaningful |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-term Debt | (Dollars in millions) As of December 31, Issuance Date Maturity Date Coupon Rate Seniority Interest Due Dates 2018 2017 Parent Company And Non-Banking Subsidiary Issuances August 18, 2015 August 18, 2025 3.55 % Senior notes 2/18; 8/18 (1) $ 1,268 $ 1,287 August 18, 2015 August 18, 2020 2.55 % Senior notes 2/18; 8/18 1,177 1,184 November 19, 2013 November 20, 2023 3.7 % Senior notes 5/20; 11/20 (1) 1,006 1,021 December 15, 2014 December 16, 2024 3.3 % Senior notes 6/16; 12/16 (1) 979 993 May 15, 2013 May 15, 2023 (2) 3.1 % Subordinated notes 5/15; 11/15 (1) 972 981 April 30, 2007 June 15, 2047 Floating-rate Junior subordinated debentures 3/15; 6/15; 9/15; 12/15 794 793 May 15, 2017 May 15, 2023 2.653 % Fixed-to-floating rate senior notes 5/15; 11/15 (1) 734 740 March 7, 2011 March 7, 2021 4.375 % Senior notes 3/7; 9/7 (1) 731 734 May 19, 2016 May 19, 2021 1.95 % Senior notes 5/19; 11/19 (1) 725 724 May 19, 2016 May 19, 2026 2.65 % Senior notes 5/19; 11/19 (1) 698 706 December 3, 2018 December 3, 2029 4.141 % Fixed-to-floating rate senior notes 6/3; 12/3 (1) 513 — December 3, 2018 December 3, 2024 3.776 % Fixed-to-floating rate senior notes 6/3; 12/3 (1) 507 — August 18, 2015 August 18, 2020 Floating-rate Senior notes 2/18; 5/18; 8/18; 11/18 499 499 May 15, 1998 May 15, 2028 Floating-rate Junior subordinated debentures 2/15; 5/15; 8/15; 11/15 150 150 June 21, 1996 June 15, 2026 (3) 7.35 % Senior notes 6/15; 12/15 150 150 February 11, 2011 March 15, 2018 4.956 % Junior subordinated debentures 3/15; 9/15 — 502 May 15, 2013 May 15, 2018 1.35 % Senior notes 5/15; 11/15 — 499 Parent Company Long-term capital leases 190 250 State Street Bank issuances September 24, 2003 October 15, 2018 (2) 5.25 % Subordinated notes 4/15; 10/15 — 407 Total long-term debt $ 11,093 $ 11,620 (1) We have entered into interest rate swap agreements, recorded as fair value hedges, to modify our interest expense on these senior and subordinated notes from a fixed rate to a floating rate. As of December 31, 2018 and 2017 , the carrying value of long-term debt associated with these fair value hedges decreased $157 million and $87 million , respectively. Refer to Note 10 for additional information about fair value hedges. (2) The subordinated notes qualify for inclusion in tier 2 regulatory capital under current federal regulatory capital guidelines. (3) We may not redeem notes prior to their maturity. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | 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: December 31, (In millions) 2018 2017 Derivatives not designated as hedging instruments: Interest rate contracts: Futures $ 2,348 $ 2,392 Foreign exchange contracts: Forward, swap and spot 2,238,819 1,679,976 Options purchased 578 350 Options written 576 302 Futures 49 50 Commodity and equity contracts: Commodity (1) — 16 Equity (1) — 50 Other: Stable value contracts (2) 26,634 26,653 Deferred value awards (3) 434 473 Derivatives designated as hedging instruments: Interest rate contracts: Swap agreements 10,596 11,047 Foreign exchange contracts: Forward and swap 3,412 28,913 (1) Primarily composed of positions held by a consolidated sponsored investment fund. (2) The notional value of the stable value contracts generally represents our maximum exposure. However, exposure to various stable value contracts is contractually limited to substantially lower amounts than the notional values, which represent the total assets of the stable value funds. (3) Represents grants of deferred value awards to employees; refer to discussion in this note under "Derivatives Not Designated as Hedging Instruments." |
Schedule of Derivative Assets at Fair Value | 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 11 . December 31, December 31, 2018 2017 2018 2017 (In millions) Derivative Assets (1) Derivative Liabilities (2) Derivatives not designated as hedging instruments: Foreign exchange contracts $ 16,369 $ 11,477 $ 16,434 $ 11,361 Other derivative contracts — 1 214 284 Total $ 16,369 $ 11,478 $ 16,648 $ 11,645 Derivatives designated as hedging instruments: Foreign exchange contracts $ 17 $ 120 $ 88 $ 107 Interest rate contracts 13 8 71 100 Total $ 30 $ 128 $ 159 $ 207 (1) Derivative assets are included within other assets in our consolidated statement of condition. (2) Derivative liabilities are included within other liabilities in our consolidated statement of condition. |
Schedule of Derivative Liabilities at Fair Value | 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 11 . December 31, December 31, 2018 2017 2018 2017 (In millions) Derivative Assets (1) Derivative Liabilities (2) Derivatives not designated as hedging instruments: Foreign exchange contracts $ 16,369 $ 11,477 $ 16,434 $ 11,361 Other derivative contracts — 1 214 284 Total $ 16,369 $ 11,478 $ 16,648 $ 11,645 Derivatives designated as hedging instruments: Foreign exchange contracts $ 17 $ 120 $ 88 $ 107 Interest rate contracts 13 8 71 100 Total $ 30 $ 128 $ 159 $ 207 (1) Derivative assets are included within other assets in our consolidated statement of condition. (2) Derivative liabilities are included within other liabilities in our consolidated statement of condition. |
Impact of Derivative Financial Instruments On 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: Years Ended December 31, Years Ended December 31, 2018 2017 2016 2018 2017 2016 (In millions) 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 Derivatives designated as fair value hedges: Foreign exchange contracts Processing fees and other revenue $ (74 ) $ 18 $ (6 ) Investment securities Processing fees and other revenue $ 74 $ (18 ) $ 6 Foreign exchange contracts Processing fees and other revenue (328 ) 626 221 FX deposit Processing fees and other revenue 328 (626 ) (221 ) Interest rate contracts (1) Net interest income 31 — — Available-for-sale securities (2) Net interest income (32 ) — — Interest rate contracts (1) Net interest income (58 ) — — Long-term debt Net interest income 49 — — Interest rate contracts (1) Processing fees and other revenue — 39 43 Available-for-sale securities (2) Processing fees and other revenue — (37 ) (40 ) Interest rate contracts (1) Processing fees and other revenue — (38 ) (98 ) Long-term debt Processing fees and other revenue — 39 100 Total $ (429 ) $ 645 $ 160 $ 419 $ (642 ) $ (155 ) (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 2018, 2017 and 2016, $24 million , $22 million and $23 million , respectively, of net unrealized gains on AFS investment securities designated in fair value hedges were recognized in OCI. Years Ended December 31, Years Ended December 31, 2018 2017 2016 2018 2017 2016 (In millions) Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Derivatives designated as cash flow hedges: Interest rate contracts $ (12 ) $ (14 ) $ — Net interest income $ (1 ) $ 2 $ — Foreign exchange contracts (12 ) (104 ) (39 ) Net interest income 27 24 24 Total $ (24 ) $ (118 ) $ (39 ) $ 26 $ 26 $ 24 Derivatives designated as net investment hedges: Foreign exchange contracts $ 81 $ (160 ) $ 109 Gains (losses) related to investment securities, net $ — $ — $ — Total $ 81 $ (160 ) $ 109 $ — $ — $ — The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated: Years Ended December 31, 2018 2017 2016 (In millions) Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Derivatives not designated as hedging instruments: Foreign exchange contracts Foreign exchange trading services revenue $ 723 $ 632 $ 662 Foreign exchange contracts Interest expense (1) (41 ) — — Foreign exchange contracts Processing fees and other revenue — (23 ) — Interest rate contracts Foreign exchange trading services revenue (6 ) 8 (7 ) Interest rate contracts Processing fees and other revenue (1) (1 ) — 1 Credit derivative contracts Foreign exchange trading services revenue — — (1 ) Other derivative contracts Foreign exchange trading services revenue 5 — (2 ) Other derivative contracts Compensation and employee benefits (171 ) (143 ) (448 ) Total $ 509 $ 474 $ 205 (1) 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. |
Schedule of Outstanding Hedges: (Notional Amount) | The following table shows the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships: December 31, 2018 Hedged Items Currently Designated Hedged Items No Longer Designated (1) (In millions) Carrying Amount of Assets (Liabilities) (2) Cumulative Hedge Accounting Basis Adjustments Carrying Amount of Assets (Liabilities) Cumulative Hedge Accounting Basis Adjustments Long-term debt $ 8,270 $ (137 ) $ 1,197 $ (20 ) Available-for-sale securities 1,496 72 50 1 Total $ 9,766 $ (65 ) $ 1,247 $ (19 ) December 31, 2017 Hedged Items Currently Designated Hedged Items No Longer Designated (1) (In millions) Carrying Amount of Assets (Liabilities) (2) Cumulative Hedge Accounting Basis Adjustments Carrying Amount of Assets (Liabilities) Cumulative Hedge Accounting Basis Adjustments Long-term debt $ 8,465 $ (95 ) $ 1,400 $ 8 Available-for-sale securities 1,926 106 894 1 Total $ 10,391 $ 11 $ 2,294 $ 9 (1) Represents hedged items no longer designated in qualifying fair value hedging relationships for which an associated basis adjustment exists at the balance sheet date. (2) Does not include the carrying amount of hedged items when only foreign currency risk is the designated hedged risk. The carrying amount excluded for investment securities was $458 million and $763 million for December 31, 2018 and 2017, respectively. The carrying amount of assets (liabilities) excludes deposits of zero and $13.2 billion for December 31, 2018 and 2017, respectively. |
Offsetting Arrangements (Tables
Offsetting Arrangements (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2018 Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 16,386 $ (10,223 ) $ 6,163 $ — $ 6,163 Interest rate contracts (6) 13 — 13 — 13 Other derivative contracts — — — — — Cash collateral and securities netting NA (987 ) (987 ) (220 ) (1,207 ) Total derivatives 16,399 (11,210 ) 5,189 (220 ) 4,969 Other financial instruments: Resale agreements and securities borrowing (7) 116,143 (91,889 ) 24,254 (22,872 ) 1,382 Total derivatives and other financial instruments $ 132,542 $ (103,099 ) $ 29,443 $ (23,092 ) $ 6,351 Assets: December 31, 2017 Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) 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) Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments. (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 $24.3 billion as of December 31, 2018 were $4.7 billion of resale agreements and $19.6 billion of collateral provided related to securities borrowing. Included in the $22.6 billion as of December 31, 2017 were $3.2 billion of resale agreements and $19.4 billion 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 12 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: December 31, 2018 Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 16,522 $ (10,223 ) $ 6,299 $ — $ 6,299 Interest rate contracts (6) 71 — 71 — 71 Other derivative contracts 214 — 214 — 214 Cash collateral and securities netting NA (1,341 ) (1,341 ) (215 ) (1,556 ) Total derivatives 16,807 (11,564 ) 5,243 (215 ) 5,028 Other financial instruments: Repurchase agreements and securities lending (7) 104,494 (91,889 ) 12,605 (11,543 ) 1,062 Total derivatives and other financial instruments $ 121,301 $ (103,453 ) $ 17,848 $ (11,758 ) $ 6,090 Liabilities: December 31, 2017 Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (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) Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments (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 $12.6 billion as of December 31, 2018 were $1.1 billion of repurchase agreements and $11.5 billion of collateral received related to securities lending transactions. Included in the $6.7 billion as of December 31, 2017 were $2.8 billion of repurchase agreements and $3.9 billion 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 12 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 repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated: As of December 31, 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 $ 88,904 $ — $ 88,904 $ 43,072 Total 88,904 — 88,904 43,072 Securities lending transactions: US Treasury and agency securities 249 — 249 — Corporate debt securities 278 — 278 35 Equity securities 6,426 137 6,563 11,020 Other (2) 8,500 — 8,500 — Total 15,453 137 15,590 11,055 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 104,357 $ 137 $ 104,494 $ 54,127 (1) As of December 31, 2017 , there were no balances with contractual maturities up to 30 days. (2) Represents a security interest in 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) | 12 Months Ended |
Dec. 31, 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) December 31, 2018 December 31, 2017 Commitments: Unfunded credit facilities $ 28,951 $ 26,488 Guarantees (1) : Indemnified securities financing $ 342,337 $ 381,817 Standby letters of credit 2,985 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) December 31, 2018 December 31, 2017 Fair value of indemnified securities financing $ 342,337 $ 381,817 Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing 357,893 400,828 Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements 42,610 61,270 Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements 45,064 65,272 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 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 Series H September 2018 500,000 1/100th 100,000 1,000 494 December 15, 2023 (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 following table presents the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated: Years Ended December 31, 2018 2017 Dividends Declared per Share Dividends Declared per Depositary Share Total Dividends Declared per Share Dividends Declared per Depositary Share Total (In millions) Preferred Stock: Series C $ 5,250 $ 1.32 $ 26 $ 5,250 $ 1.32 $ 26 Series D 5,900 1.48 44 5,900 1.48 44 Series E 6,000 1.52 45 6,000 1.52 45 Series F 5,250 52.50 40 5,250 52.50 40 Series G 5,352 1.32 27 5,352 1.32 27 Series H 1,219 12.18 6 — — — Total $ 188 $ 182 The table below presents the dividends declared on common stock for the periods indicated: Years Ended December 31, 2018 2017 Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) Common Stock $ 1.78 $ 665 $ 1.60 $ 596 |
Stock Repurchase Program | The table below presents the activity under our common stock purchase program during the period indicated: Year Ended December 31, 2018 (1) Shares Acquired Average Cost per Share Total Acquired 2017 Program 3.3 $ 105.31 $ 350 (1) During the year ended December 31, 2018, there were no shares repurchased under the 2018 Program. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the after-tax components of AOCI as of the dates indicated: Years Ended December 31, (In millions) 2018 2017 2016 Net unrealized (losses) gains on cash flow hedges $ (89 ) $ (56 ) $ 229 Net unrealized (losses) gains on available-for-sale securities portfolio (193 ) 148 (225 ) Net unrealized gains related to reclassified available-for-sale securities 58 19 25 Net unrealized (losses) gains on available-for-sale securities (135 ) 167 (200 ) Net unrealized (losses) on available-for-sale securities designated in fair value hedges (40 ) (64 ) (86 ) Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries 16 (65 ) 95 Other-than-temporary impairment on held-to-maturity securities related to factors other than credit (2 ) (6 ) (9 ) Net unrealized (losses) on retirement plans (143 ) (170 ) (194 ) Foreign currency translation (963 ) (815 ) (1,875 ) Total $ (1,356 ) $ (1,009 ) $ (2,040 ) The following table presents changes in AOCI by component, net of related taxes, for the periods indicated: (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 (285 ) 412 (160 ) 3 — 1,059 1,029 Amounts reclassified into (out of) earnings — (23 ) — — 24 1 2 Other comprehensive income (loss) (285 ) 389 (160 ) 3 24 1,060 1,031 Balance as of December 31, 2017 $ (56 ) $ 103 $ (65 ) $ (6 ) $ (170 ) $ (815 ) $ (1,009 ) Other comprehensive income (loss) before reclassifications (33 ) (285 ) 81 6 — (148 ) (379 ) Amounts reclassified into (out of) earnings — 7 — (2 ) 27 — 32 Other comprehensive income (loss) (33 ) (278 ) 81 4 27 (148 ) (347 ) Balance as of December 31, 2018 $ (89 ) $ (175 ) $ 16 $ (2 ) $ (143 ) $ (963 ) $ (1,356 ) |
Schedule of Reclassifications Out of AOCI | The following table presents after-tax reclassifications into earnings for the periods indicated: Years Ended December 31, 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 $16, respectively $ 7 $ (23 ) 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, net of related taxes of $1 and zero, respectively (2 ) — Losses reclassified (from) to other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of ($8) and ($8), respectively 27 24 Compensation and employee benefits expenses Foreign currency translation: Sales of non-U.S. entities, net of related taxes — 1 Processing fees and other revenue Total reclassifications into (out of) AOCI $ 32 $ 2 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Regulatory Capital | The following table presents the regulatory capital structure, total RWA, related regulatory capital ratios and the minimum required regulatory capital ratios for us 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 were 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 December 31, 2018 Basel III Standardized Approach December 31, 2018 Basel III Advanced Approaches December 31, 2017 Basel III Standardized Approach December 31, 2017 Basel III Advanced Approaches December 31, 2018 Basel III Standardized Approach December 31, 2018 Basel III Advanced Approaches December 31, 2017 Basel III Standardized Approach December 31, 2017 Common shareholders' equity: Common stock and related surplus $ 10,565 $ 10,565 $ 10,302 $ 10,302 $ 12,894 $ 12,894 $ 11,612 $ 11,612 Retained earnings (1) 20,606 20,606 18,856 18,856 14,261 14,261 12,312 12,312 Accumulated other comprehensive income (loss) (1,332 ) (1,332 ) (972 ) (972 ) (1,112 ) (1,112 ) (809 ) (809 ) Treasury stock, at cost (8,715 ) (8,715 ) (9,029 ) (9,029 ) — — — — Total 21,124 21,124 19,157 19,157 26,043 26,043 23,115 23,115 Regulatory capital adjustments: Goodwill and other intangible assets, net of associated deferred tax liabilities (2) (9,350 ) (9,350 ) (6,877 ) (6,877 ) (9,073 ) (9,073 ) (6,579 ) (6,579 ) Other adjustments (3) (194 ) (194 ) (76 ) (76 ) (29 ) (29 ) (5 ) (5 ) Common equity tier 1 capital 11,580 11,580 12,204 12,204 16,941 16,941 16,531 16,531 Preferred stock 3,690 3,690 3,196 3,196 — — — — Trust preferred capital securities subject to phase-out from tier 1 capital — — — — — — — — Other adjustments — — (18 ) (18 ) — — — — Tier 1 capital 15,270 15,270 15,382 15,382 16,941 16,941 16,531 16,531 Qualifying subordinated long-term debt 778 778 980 980 776 776 983 983 Trust preferred capital securities phased out of tier 1 capital — — — — — — — — ALLL and other 14 83 4 72 11 83 — 72 Other adjustments — — 1 1 — — — — Total capital $ 16,062 $ 16,131 $ 16,367 $ 16,435 $ 17,728 $ 17,800 $ 17,514 $ 17,586 RWA: Credit risk (4) $ 47,738 $ 97,303 $ 52,000 $ 101,349 $ 45,565 $ 94,776 $ 49,489 $ 98,433 Operational risk (5) 46,060 NA 45,822 NA 44,494 NA 45,295 NA Market risk 1,517 1,517 1,334 1,334 1,517 1,517 1,334 1,334 Total RWA $ 95,315 $ 98,820 $ 99,156 $ 102,683 $ 91,576 $ 96,293 $ 96,118 $ 99,767 Adjusted quarterly average assets $ 211,924 $ 211,924 $ 209,328 $ 209,328 $ 209,413 $ 209,413 $ 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 % 12.1 % 11.7 % 12.3 % 11.9 % 18.5 % 17.6 % 17.2 % 16.6 % Tier 1 capital 9.0 8.0 16.0 15.5 15.5 15.0 18.5 17.6 17.2 16.6 Total capital 11.0 10.0 16.9 16.3 16.5 16.0 19.4 18.5 18.2 17.6 (1) In accordance with the applicable bank regulatory rules, we are not required to and, accordingly, did not revise previously-filed reported capital metrics and ratios due to our change in accounting. (2) Amounts for us and State Street Bank as of December 31, 2018 consisted of goodwill, net of associated deferred tax liabilities, and 100% of other intangible assets, net of associated deferred tax liabilities. Amounts for us 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. (3) Other adjustments within CET1 primarily include the overfunded portion of the firm’s defined benefit pension plan obligation net of associated deferred tax liabilities, disallowed deferred tax assets, and other required credit risk based deductions. (4) Includes a CVA which reflects the risk of potential fair value adjustments for credit risk reflected in our valuation of over-the-counter derivative contracts. We used a simple CVA approach in conformity with the Basel III advanced approaches. (5) 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 RWA under the advanced approaches depending on the severity of the loss event and its categorization among the seven Basel-defined UOMs. (6) Minimum requirements were phased in with full implementation beginning on January 1, 2019; minimum requirements listed are as of December 31, 2018 . (7) Minimum requirements were phased in with 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) | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, (In millions) 2018 2017 2016 Interest income: Interest-bearing deposits with banks $ 387 $ 180 $ 126 Investment securities: U.S. Treasury and federal agencies 1,178 854 821 State and political subdivisions 143 226 224 Other investments 560 658 756 Securities purchased under resale agreements 335 264 146 Loans and leases 687 504 378 Other interest-earning assets 372 222 61 Total interest income 3,662 2,908 2,512 Interest expense: Interest-bearing deposits 363 163 85 Securities sold under repurchase agreements 13 2 1 Other short-term borrowings 17 10 7 Long-term debt 389 308 260 Other interest-bearing liabilities 209 121 75 Total interest expense 991 604 428 Net interest income $ 2,671 $ 2,304 $ 2,084 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Options and Stock Appreciation Rights | The following table presents information about stock appreciation rights activity during the years indicated. For the year ended December 31, 2018, no stock appreciation rights were exercised. The total intrinsic value of stock appreciation rights exercised during the years ended December 31, 2017 and 2016 was $5 million and $1 million , respectively. As of December 31, 2018 , there was no unrecognized compensation cost related to stock appreciation rights. Shares (In thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In years) Total Intrinsic Value (In millions) Stock Appreciation Rights: Outstanding as of December 31, 2016 955 $ 77.52 Exercised (595 ) 81.71 Forfeited or expired (360 ) 70.59 Outstanding as of December 31, 2017 0 $ — 0 $ — |
Schedule of Deferred Stock Awards | Shares (In thousands) Weighted-Average Grant Date Fair Value Deferred Stock Awards: Outstanding as of December 31, 2016 7,814 $ 60.01 Granted 2,977 76.38 Vested (3,686 ) 62.88 Forfeited (257 ) 63.56 Outstanding as of December 31, 2017 6,848 65.44 Granted 2,500 101.25 Vested (3,235 ) 70.98 Forfeited (138 ) 80.6 Outstanding as of December 31, 2018 5,975 $ 77.07 |
Schedule of Performance Awards | Shares (In thousands) Weighted-Average Grant Date Fair Value Performance Awards: Outstanding as of December 31, 2016 1,247 $ 60.37 Granted 534 76.27 Forfeited 0 — Paid out (233 ) 58.91 Outstanding as of December 31, 2017 1,548 66.09 Granted 1,067 74.68 Forfeited (1 ) 101.26 Paid out (457 ) 70.58 Outstanding as of December 31, 2018 2,157 $ 69.36 |
Occupancy Expense and Informa_2
Occupancy Expense and Information Systems and Communications Expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Occupancy Expense and Information Systems and Communications Expense [Abstract] | |
Summary of Future Minimum Lease Payments Under Non Cancelable Capital and Operating Leases | The following table presents a summary of future minimum lease payments under non-cancelable capital and operating leases as of December 31, 2018 . Aggregate future minimum rental commitments have been reduced by aggregate sublease rental commitments of $46 million for capital leases and $16 million for operating leases. (In millions) Capital Leases Operating Leases Total 2019 $ 34 $ 192 $ 226 2020 31 181 212 2021 31 170 201 2022 31 147 178 2023 24 128 152 Thereafter — 380 380 Total minimum lease payments 151 $ 1,198 $ 1,349 Less amount representing interest payments (31 ) Present value of minimum lease payments $ 120 |
Expenses (Tables)
Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Expenses [Abstract] | |
Schedule of Expenses | The following table presents the components of other expenses for the periods indicated: Years Ended December 31, (In millions) 2018 2017 2016 Professional services $ 357 $ 340 $ 379 Sales advertising public relations 115 67 52 Insurance 97 118 93 Regulatory fees and assessments 87 106 82 Bank operations 70 80 62 Litigation 7 (15 ) 50 Other 443 233 245 Total other expenses $ 1,176 $ 929 $ 963 |
Restructuring and Related Costs | The following table presents aggregate activity for the periods indicated: (In millions) Employee Real Estate Asset and Other Write-offs Total Accrual Balance at December 31, 2015 $ 9 $ 11 $ 3 $ 23 Accruals for Business Operations and Information Technology (2 ) — — (2 ) Accruals for Beacon 94 18 30 142 Payments and other adjustments (64 ) (12 ) (31 ) (107 ) Accrual Balance at December 31, 2016 $ 37 $ 17 $ 2 $ 56 Accruals for Beacon 186 32 27 245 Payments and Other Adjustments (57 ) (17 ) (26 ) (100 ) Accrual Balance at December 31, 2017 $ 166 $ 32 $ 3 $ 201 Accruals for Beacon (7 ) — — (7 ) Accruals for Repositioning Charges 259 41 — 300 Payments and Other Adjustments (115 ) (36 ) (2 ) (153 ) Accrual Balance at December 31, 2018 $ 303 $ 37 $ 1 $ 341 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table presents the components of income tax expense (benefit) for the periods indicated: Years Ended December 31, (In millions) 2018 2017 2016 Current: Federal $ 122 $ 343 $ 69 State 148 24 34 Non-U.S. 374 380 320 Total current expense 644 747 423 Deferred: Federal (128 ) 45 (309 ) State (22 ) 66 38 Non-U.S. 14 (19 ) (85 ) Total deferred expense (benefit) (136 ) 92 (356 ) Total income tax expense (benefit) $ 508 $ 839 $ 67 |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents a reconciliation of the U.S. statutory income tax rate to our effective tax rate based on income before income tax expense for the periods indicated: Years Ended December 31, 2018 2017 2016 U.S. federal income tax rate 21.0 % 35.0 % 35.0 % Changes from statutory rate: State taxes, net of federal benefit 3.1 2.0 2.1 Tax-exempt income (2.0 ) (4.3 ) (5.9 ) Business tax credits (1) (4.1 ) (3.7 ) (10.5 ) Foreign tax differential (0.6 ) (7.2 ) (7.4 ) Transition tax — 15.2 — Deferred tax revaluation (1.0 ) (6.8 ) — Foreign designated earnings — (0.7 ) (6.5 ) Foreign capital transactions — — (4.1 ) Litigation expense 0.3 — 1.3 Other, net (0.4 ) (1.6 ) (1.0 ) Effective tax rate 16.3 % 27.9 % 3.0 % (1) Business tax credits include low-income housing, production and investment tax credits. |
Schedule of Deferred Tax Assets and Liabilities | The following table presents significant components of our gross deferred tax assets and gross deferred tax liabilities as of the dates indicated: December 31, (In millions) 2018 2017 Deferred tax assets: Unrealized losses on investment securities, net $ 146 $ 17 Deferred compensation 134 159 Pension plan 55 82 Accrued expenses 156 132 Foreign currency translation 50 18 General business credit 274 231 NOL and other carryforwards 153 101 Other — 27 Total deferred tax assets 968 767 Valuation allowance for deferred tax assets (138 ) (88 ) Deferred tax assets, net of valuation allowance $ 830 $ 679 Deferred tax liabilities: Leveraged lease financing $ — $ 184 Fixed and intangible assets 744 755 Non-U.S. earnings — 6 Investment basis differences 229 172 Other 11 $ — Total deferred tax liabilities $ 984 $ 1,117 |
Summary of Valuation Allowance | The table below summarizes the deferred tax assets and related valuation allowances recognized as of December 31, 2018 : (In millions) Deferred Tax Asset Valuation Allowance Expiration General business Credits $ 274 $ — 2035-2038 NOLs - Non-U.S. 55 (41 ) 2019-2028, None Other Carryforwards 88 (88 ) 2037-2039 /None NOLs - State 11 (9 ) 2019-2036 |
Summary of Income Tax Contingencies | The following table presents activity related to unrecognized tax benefits as of the dates indicated: December 31, (In millions) 2018 2017 2016 Beginning balance $ 94 $ 71 $ 63 Decrease related to agreements with tax authorities (40 ) (14 ) (13 ) Increase related to tax positions taken during current year 12 26 7 Increase related to tax positions taken during prior years 44 11 14 Decreases related to a lapse of the applicable statute of limitations (2 ) — — Ending balance $ 108 $ 94 $ 71 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, (Dollars in millions, except per share amounts) 2018 2017 2016 Net income $ 2,593 $ 2,156 $ 2,138 Less: Preferred stock dividends (188 ) (182 ) (173 ) Dividends and undistributed earnings allocated to participating securities (1) (1 ) (2 ) (2 ) Net income available to common shareholders $ 2,404 $ 1,972 $ 1,963 Average common shares outstanding (In thousands): Basic average common shares 371,983 374,793 391,485 Effect of dilutive securities: equity-based awards 4,493 5,420 4,605 Diluted average common shares 376,476 380,213 396,090 Anti-dilutive securities (2) 1,011 188 2,143 Earnings per common share: Basic $ 6.46 $ 5.26 $ 5.01 Diluted (3) 6.39 5.19 4.96 (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. Additional information about equity-based awards is provided in Note 18 . (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) | 12 Months Ended |
Dec. 31, 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 amounts in the “Other” columns were not allocated to our business lines. Prior reported results reflect reclassifications, for comparative purposes, related to management changes in methodologies associated with allocations of revenue and expenses to lines of business in 2018 . Years Ended December 31, Investment Investment (1) Other Total (Dollars in millions) 2018 2017 2016 2018 2017 2016 2018 2017 2016 2018 2017 2016 Servicing fees $ 5,429 $ 5,365 $ 5,073 $ — $ — $ — $ (8 ) $ — $ — $ 5,421 $ 5,365 $ 5,073 Management fees (1) — — — 1,851 1,616 1,292 — — — 1,851 1,616 1,292 Foreign exchange trading services (1) 1,071 999 1,038 130 72 61 — — — 1,201 1,071 1,099 Securities finance 543 606 562 — — — — — — 543 606 562 Processing fees and other (2) 443 336 203 (5 ) 7 (29 ) — — — 438 343 174 Total fee revenue (1)(2) 7,486 7,306 6,876 1,976 1,695 1,324 (8 ) — — 9,454 9,001 8,200 Net interest income 2,691 2,309 2,081 (20 ) (5 ) 3 — — — 2,671 2,304 2,084 Gains (losses) related to investment securities, net 6 (39 ) 7 — — — — — — 6 (39 ) 7 Total revenue (1)(2) 10,183 9,576 8,964 1,956 1,690 1,327 (8 ) — — 12,131 11,266 10,291 Provision for loan losses 15 2 10 — — — — — — 15 2 10 Total expenses (1)(2) 7,081 6,717 6,660 1,544 1,286 1,218 390 266 199 9,015 8,269 8,077 Income before income tax expense $ 3,087 $ 2,857 $ 2,294 $ 412 $ 404 $ 109 $ (398 ) $ (266 ) $ (199 ) $ 3,101 $ 2,995 $ 2,204 Pre-tax margin 30 % 30 % 26 % 21 % 24 % 8 % 26 % 27 % 21 % Average assets (in billions) $ 220.2 $ 214.0 $ 225.3 $ 3.2 $ 5.4 $ 4.4 $ 223.4 $ 219.4 $ 229.7 (1) The new revenue recognition standard contributed approximately $248 million in Investment Management total revenue, including approximately $190 million in management fees and $58 million in foreign exchange trading services, and $248 million in Investment Management total expenses for 2018 compared to 2017. (2) Investment Servicing includes results from our acquisition of Charles River Development on October 1, 2018, which is described in Note 1. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | 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. The amounts in the “Other” columns were not allocated to our business lines. Year Ended December 31, 2018 Investment Servicing Investment Management Other Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2018 Servicing fees $ 5,429 $ — $ 5,429 $ — $ — $ — $ (8 ) $ — $ (8 ) $ 5,421 Management fees — — — 1,851 — 1,851 — — — 1,851 Foreign exchange trading services 361 710 1,071 130 — 130 — — — 1,201 Securities finance 308 235 543 — — — — — — 543 Processing fees and other 209 234 443 — (5 ) (5 ) — — — 438 Total fee revenue 6,307 1,179 7,486 1,981 (5 ) 1,976 (8 ) — (8 ) 9,454 Net interest income — 2,691 2,691 — (20 ) (20 ) — — — 2,671 Gains (losses) related to investment securities, net — 6 6 — — — — — — 6 Total revenue $ 6,307 $ 3,876 $ 10,183 $ 1,981 $ (25 ) $ 1,956 $ (8 ) $ — $ (8 ) $ 12,131 |
Non-U.S. Activities (Tables)
Non-U.S. Activities (Tables) | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, 2018 2017 2016 (In millions) Non-U.S. (1) U.S. Total Non-U.S. (1) U.S. Total Non-U.S. (1) U.S. Total Total revenue $ 5,178 $ 6,953 $ 12,131 $ 4,734 $ 6,532 $ 11,266 $ 4,419 $ 5,872 $ 10,291 Income before income taxes 1,664 1,437 3,101 1,230 1,765 2,995 1,047 1,157 2,204 (1) Geographic mix is generally based on the domicile of the entity servicing the funds and is not necessarily representative of the underlying asset mix. |
Parent Company Financial Stat_2
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information Statement of Income of Parent Company | Statement of Income - Parent Company Years Ended December 31, (In millions) 2018 2017 2016 Cash dividends from consolidated banking subsidiary $ 785 $ 2,224 $ 640 Cash dividends from consolidated non-banking subsidiaries and unconsolidated entities 41 12 75 Other, net 58 127 92 Total revenue 884 2,363 807 Interest expense 381 297 249 Other expenses 162 94 107 Total expenses 543 391 356 Income tax (benefit) (127 ) (86 ) (47 ) Income before equity in undistributed income of consolidated subsidiaries and unconsolidated entities 468 2,058 498 Equity in undistributed income of consolidated subsidiaries and unconsolidated entities: Consolidated banking subsidiary 1,944 (1 ) 1,624 Consolidated non-banking subsidiaries and unconsolidated entities 181 99 16 Net income $ 2,593 $ 2,156 $ 2,138 |
Condensed Financial Information Statement of Condition of Parent Company | Statement of Condition - Parent Company As of December 31, (In millions) 2018 2017 Assets: Interest-bearing deposits with consolidated banking subsidiary $ 486 $ 532 Trading account assets 357 361 Investment securities available-for-sale 224 43 Investments in subsidiaries: Consolidated banking subsidiary 25,966 23,033 Consolidated non-banking subsidiaries 6,726 6,762 Unconsolidated entities 106 63 Notes and other receivables from: Consolidated banking subsidiary 64 273 Consolidated non-banking subsidiaries and unconsolidated entities 2,337 2,843 Other assets 96 263 Total assets $ 36,362 $ 34,173 Liabilities: Accrued expenses and other liabilities $ 685 $ 917 Long-term debt 10,940 10,986 Total liabilities 11,625 11,903 Shareholders’ equity 24,737 22,270 Total liabilities and shareholders’ equity $ 36,362 $ 34,173 |
Condensed Financial Information Statement of Cash Flows of Parent Company | Statement of Cash Flows - Parent Company Years Ended December 31, (In millions) 2018 2017 2016 Net cash provided by operating activities $ 2,250 $ 2,047 $ 417 Investing Activities: Net decrease (increase) in interest-bearing deposits with consolidated banking subsidiary 46 3,103 2,100 Purchases of available-for-sale securities (224 ) — — Investments in consolidated banking and non-banking subsidiaries (4,883 ) (7,672 ) (7,600 ) Sale or repayment of investment in consolidated banking and non-banking subsidiaries 2,472 4,216 6,703 Business acquisitions — — (395 ) Net increase in investments in unconsolidated affiliates — 172 — Net cash (used in) provided by investing activities (2,589 ) (181 ) 808 Financing Activities: Proceeds from issuance of long-term debt, net of issuance costs 996 748 1,492 Payments for long-term debt (1,000 ) (450 ) (1,000 ) Proceeds from issuance of preferred stock, net of issuance costs 495 — 493 Proceeds from issuance of common stock, net of issuance costs 1,150 — — Repurchases of common stock (350 ) (1,292 ) (1,365 ) Repurchases of common stock for employee tax withholding (124 ) (104 ) (122 ) Payments for cash dividends (828 ) (768 ) (723 ) Net cash provided (used in) financing activities 339 (1,866 ) (1,225 ) Net change — — — Cash and due from banks at beginning of year — — — Cash and due from banks at end of year $ — $ — $ — |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Basis of Presentation (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Accounting Policies [Abstract] | |
Number of lines of business | 2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Acquisitions and Dispositions (Details) - USD ($) $ in Millions | Oct. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 7,446 | $ 6,022 | $ 5,814 | |
Charles River Development | ||||
Business Acquisition [Line Items] | ||||
Percent interest acquired | 100.00% | |||
Payment for acquisition | $ 2,600 | |||
Revenue since acquisition | 121 | |||
Expense since acquisition | $ 57 | |||
Goodwill | 1,500 | |||
Goodwill expected to be tax deductible | 1,400 | |||
Identifiable intangible assets | $ 1,000 | |||
Minimum | Charles River Development | ||||
Business Acquisition [Line Items] | ||||
Useful life of acquired identifiable intangible assets | 10 years | |||
Maximum | Charles River Development | ||||
Business Acquisition [Line Items] | ||||
Useful life of acquired identifiable intangible assets | 18 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - New Accounting Pronouncement (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase in revenues | $ 12,131 | $ 11,266 | $ 10,291 | ||
Increase in management fees | 1,851 | 1,616 | 1,292 | ||
Increase in trading services revenue | 1,201 | 1,071 | 1,099 | ||
Increase in expenses | 9,015 | 8,269 | 8,077 | ||
Increase in other expenses | 1,176 | 929 | 963 | ||
Increase in transaction processing | 985 | 838 | $ 800 | ||
Investment securities available-for-sale | 45,148 | 57,121 | |||
Debt securities, held-to-maturity | 41,914 | $ 40,458 | |||
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 | 319 | ||||
Increase in management fees | 190 | ||||
Increase in trading services revenue | 58 | ||||
Increase in expenses | 272 | ||||
Increase in other expenses | 183 | ||||
Increase in transaction processing | 106 | ||||
Increase in all other expenses | 30 | ||||
Accounting Standards Update 2017-12 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Investment securities available-for-sale | 1,200 | ||||
Debt securities, held-to-maturity | (1,200) | ||||
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 | ||||
Subsequent Event | Accounting Standards Update 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Right-of-use assets | $ 900 | ||||
Lease liabilities | 1,100 | ||||
Subsequent Event | Accounting Standards Update 2018-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stranded tax effects reclassified | $ 84 | ||||
Management fees | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase in management fees | 1,851 | ||||
Foreign exchange trading services | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase in trading services revenue | 1,201 | ||||
Other Services | 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 other revenue lines | $ 71 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Change in Accounting Policy (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2017 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Other assets | $ 34,404 | $ 30,985 | ||
Total assets | 244,596 | 238,392 | ||
Accrued expenses and other liabilities | 24,232 | 15,620 | ||
Retained earnings | 20,553 | 18,809 | ||
Total liabilities and stockholders' equity | 244,596 | 238,392 | ||
Income Statement Related Disclosures [Abstract] | ||||
Processing fees and other | 438 | 343 | $ 174 | |
Total fee revenue | 9,454 | 9,001 | 8,200 | |
Income tax expense (benefit) | 508 | 839 | 67 | |
Net income | $ 2,593 | $ 2,156 | $ 2,138 | |
Basic (in USD per share) | $ 6.46 | $ 5.26 | $ 5.01 | |
Diluted (in USD per share) | $ 6.39 | $ 5.19 | $ 4.96 | |
As Originally Reported | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Other assets | $ 34,434 | $ 31,018 | ||
Total assets | 244,626 | 238,425 | ||
Accrued expenses and other liabilities | 24,209 | 15,606 | ||
Retained earnings | 20,606 | 18,856 | ||
Total liabilities and stockholders' equity | 244,626 | 238,425 | ||
Income Statement Related Disclosures [Abstract] | ||||
Processing fees and other | 289 | 247 | $ 90 | |
Total fee revenue | 9,305 | 8,905 | 8,116 | |
Income tax expense (benefit) | 400 | 722 | (22) | |
Net income | $ 2,599 | $ 2,177 | $ 2,143 | |
Basic (in USD per share) | $ 6.48 | $ 5.32 | $ 5.03 | |
Diluted (in USD per share) | $ 6.40 | $ 5.24 | $ 4.97 | |
Effect of Change | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Retained earnings | $ 26 | |||
Change in Accounting | Effect of Change | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Other assets | $ (30) | $ (33) | ||
Total assets | (30) | (33) | ||
Accrued expenses and other liabilities | 23 | 14 | ||
Retained earnings | (53) | (47) | ||
Total liabilities and stockholders' equity | (30) | (33) | ||
Income Statement Related Disclosures [Abstract] | ||||
Processing fees and other | 102 | 96 | $ 84 | |
Total fee revenue | 102 | 96 | 84 | |
Income tax expense (benefit) | 108 | 117 | 89 | |
Net income | $ (6) | $ (21) | $ (5) | |
Basic (in USD per share) | $ (0.02) | $ (0.06) | $ (0.02) | |
Diluted (in USD per share) | $ (0.01) | $ (0.05) | $ (0.01) | |
Other Adjustments | Effect of Change | ||||
Income Statement Related Disclosures [Abstract] | ||||
Processing fees and other | $ 47 | |||
Total fee revenue | 47 | |||
Income tax expense (benefit) | 0 | |||
Net income | $ 0 | |||
Basic (in USD per share) | $ 0 | |||
Diluted (in USD per share) | $ 0 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | $ 860 | $ 1,093 |
Investment securities available-for-sale | 45,148 | 57,121 |
Derivative asset, collateral, cash offset | 987 | 2,045 |
Derivative liability, collateral, cash offset | 1,341 | 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 | 1,295 | 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 | 1,331 | 1,885 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 860 | 1,093 |
Investment securities available-for-sale | 45,148 | 57,121 |
Derivative asset, Impact of Netting | (7,593) | |
Derivative assets | 5,189 | 4,013 |
Other | 395 | |
Other assets - impact of netting | 0 | |
Total, derivative asset | 51,592 | 62,227 |
Derivative liability, Impact of Netting | (11,564) | (5,970) |
Derivative liabilities | 5,243 | 5,882 |
Total liabilities carried at fair value | 5,243 | 5,921 |
Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, Impact of Netting | (11,210) | (7,593) |
Derivative assets | 5,176 | 4,004 |
Derivative liability, Impact of Netting | (11,564) | (5,970) |
Derivative liabilities | 4,958 | 5,498 |
Recurring | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, Impact of Netting | 0 | 0 |
Derivative assets | 13 | 8 |
Derivative liability, Impact of Netting | 0 | 0 |
Derivative liabilities | 71 | 100 |
Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, Impact of Netting | 0 | |
Derivative assets | 1 | |
Derivative liability, Impact of Netting | 0 | 0 |
Derivative liabilities | 214 | 284 |
Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 34 | 39 |
Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 325 | 482 |
Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 501 | 572 |
Investment securities available-for-sale | 1,658 | 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 | 1,039 | 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 | 15,968 | 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 | 17,007 | 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 | 541 | 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 | 583 | 1,542 |
Recurring | Asset-backed securities, collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 593 | 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 | 1,717 | 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 | 1,682 | 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 | 1,574 | 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 | 12,793 | 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 | 6,602 | 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 | 22,651 | 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 | 1,918 | 9,151 |
Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 197 | 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 | 472 | |
Investment securities available-for-sale | 11 | |
Derivative asset | 9 | |
Total, derivative asset | 492 | |
Derivative liability | 1 | |
Total liabilities carried at fair value | 0 | 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 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 13 | 8 |
Derivative liability | 0 | 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 | 1 | |
Derivative liability | 0 | 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 | 34 | 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 | 146 | 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 | 0 | 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 | 1,039 | 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 | |
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, collateralized loan 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 | Total asset-backed 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 | 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 | |
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 | 621 | |
Investment securities available-for-sale | 54,984 | |
Derivative asset | 11,596 | |
Total, derivative asset | 67,201 | |
Derivative liability | 11,850 | |
Total liabilities carried at fair value | 16,803 | 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 | 16,382 | 11,596 |
Derivative liability | 16,518 | 11,467 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 71 | 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 | |
Derivative liability | 214 | 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 | 179 | 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 | 501 | 528 |
Investment securities available-for-sale | 1,658 | 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 | 15,968 | 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 | 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 | 541 | 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 | 583 | 1,542 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, collateralized loan obligations | ||
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 | 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 | 1,682 | 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 | 943 | 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 | 12,793 | 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 | 6,544 | 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 | 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 | 1,918 | 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 | 195 | 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 | |
Investment securities available-for-sale | 2,126 | |
Derivative asset | 1 | |
Other | 0 | |
Total, derivative asset | 2,127 | |
Derivative liability | 1 | |
Total liabilities carried at fair value | 4 | 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 | 4 | 1 |
Derivative liability | 4 | 1 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Interest rate 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 | Other derivative contracts | ||
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 | 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 | |
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, collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 593 | 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 | 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 | 631 | 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 | 58 | 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 | 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 | $ 2 | 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 | 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, impact of netting | $ 0 |
Fair Value - Schedule of Fair_2
Fair Value - Schedule of Fair Value Measurements, Assets, Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | $ 2,127 | $ 1,345 |
Total realized and unrealized gain (losses) recorded in revenue | (3) | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 1 | |
Purchases | 1,776 | |
Sales | (350) | |
Settlements | (605) | |
Transfers into Level 3 | 372 | |
Transfers out of Level 3 | (409) | |
Fair value, end of period | 1,288 | 2,127 |
Change in unrealized gains (losses) related to financial instruments held | (3) | (3) |
Derivative instruments, assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 1 | 8 |
Total realized and unrealized gain (losses) recorded in revenue | (7) | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | |
Purchases | 4 | |
Sales | 0 | |
Settlements | (4) | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Fair value, end of period | 4 | 1 |
Change in unrealized gains (losses) related to financial instruments held | (3) | (3) |
Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 1 | 8 |
Total realized and unrealized gain (losses) recorded in revenue | (3) | (7) |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 |
Purchases | 6 | 4 |
Sales | 0 | 0 |
Settlements | 0 | (4) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value, end of period | 4 | 1 |
Change in unrealized gains (losses) related to financial instruments held | (3) | (3) |
US Treasury and federal agencies, mortgage-backed 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 | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | |
Purchases | 0 | |
Sales | 0 | |
Settlements | 0 | |
Transfers into Level 3 | 25 | |
Transfers out of Level 3 | (25) | |
Fair value, end of period | 0 | |
Asset-backed securities, student loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 0 | 97 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 1 | |
Purchases | 200 | |
Sales | 0 | |
Settlements | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | (298) | |
Fair value, end of period | 0 | |
Asset-backed securities, collateralized loan obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 1,358 | 905 |
Total realized and unrealized gain (losses) recorded in revenue | 4 | 3 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (7) | 0 |
Purchases | 351 | 1,035 |
Sales | (636) | (240) |
Settlements | (268) | (620) |
Transfers into Level 3 | 0 | 275 |
Transfers out of Level 3 | (209) | 0 |
Fair value, end of period | 593 | 1,358 |
Asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 1,358 | 1,002 |
Total realized and unrealized gain (losses) recorded in revenue | 3 | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 1 | |
Purchases | 1,235 | |
Sales | (240) | |
Settlements | (620) | |
Transfers into Level 3 | 275 | |
Transfers out of Level 3 | (298) | |
Fair value, end of period | 593 | 1,358 |
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 | 0 |
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 | 119 |
Sales | 0 | 0 |
Settlements | 0 | 2 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (119) | 0 |
Fair value, end of period | 0 | 119 |
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 | 402 | 32 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 1 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (4) | 0 |
Purchases | 495 | 370 |
Sales | (310) | (10) |
Settlements | (66) | (11) |
Transfers into Level 3 | 114 | 67 |
Transfers out of Level 3 | 0 | (47) |
Fair value, end of period | 631 | 402 |
Non-U.S. debt securities, other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 204 | 248 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 1 |
Purchases | 13 | 5 |
Sales | (59) | (81) |
Settlements | (36) | 31 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (64) | 0 |
Fair value, end of period | 58 | 204 |
Total non-U.S. debt securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 725 | 280 |
Total realized and unrealized gain (losses) recorded in revenue | 1 | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (1) | |
Purchases | 494 | |
Sales | (91) | |
Settlements | 22 | |
Transfers into Level 3 | 67 | |
Transfers out of Level 3 | (47) | |
Fair value, end of period | 689 | 725 |
State and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 43 | 39 |
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 |
Sales | (37) | 0 |
Settlements | (1) | (3) |
Transfers into Level 3 | 0 | 5 |
Transfers out of Level 3 | (5) | 0 |
Fair value, end of period | 0 | 43 |
Investment securities available-for-sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 2,126 | 1,337 |
Total realized and unrealized gain (losses) recorded in revenue | 4 | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 1 | |
Purchases | 1,772 | |
Sales | (350) | |
Settlements | (601) | |
Transfers into Level 3 | 372 | |
Transfers out of Level 3 | (409) | |
Fair value, end of period | 1,284 | 2,126 |
Collateralized mortgage obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 0 | 16 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | (1) |
Purchases | 0 | 24 |
Sales | 0 | 0 |
Settlements | (6) | 0 |
Transfers into Level 3 | 8 | 0 |
Transfers out of Level 3 | 0 | (39) |
Fair value, end of period | 2 | 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 | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | |
Purchases | 19 | |
Sales | (19) | |
Settlements | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Fair value, end of period | $ 0 |
Fair Value - Fair Value Inputs,
Fair Value - Fair Value Inputs, Assets and Liabilities, Quantitative Information (Details) - Pricing Methods with Significant Unobservable Market Inputs (Level 3) $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Significant Unobservable Inputs Readily Available | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Total, derivative asset | $ 1 | |
Total liabilities carried at fair value | $ 4 | 1 |
Significant Unobservable Inputs Readily Available | Derivative instruments, liabilities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative instruments, foreign exchange contracts, derivative asset | 4 | 1 |
Significant Unobservable Inputs Readily Available | Derivative instruments, assets | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative instruments, foreign exchange contracts, derivative asset | $ 4 | $ 1 |
Volatility | Option model | Derivative instruments, liabilities | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative liability, measurement input | 0.114 | 0.072 |
Volatility | Option model | Derivative instruments, assets | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative asset, measurement input | 0.114 | 0.072 |
Fair Value - Carrying Value and
Fair Value - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Assets: | ||||
Cash and due from banks | $ 3,597 | $ 2,107 | $ 1,314 | $ 1,207 |
Interest-bearing deposits with banks | 73,040 | 67,227 | ||
Securities purchased under resale agreements | 4,679 | 3,241 | ||
Investment securities held-to-maturity | 41,351 | 40,255 | ||
Financial Liabilities: | ||||
Non-interest-bearing | 44,804 | 47,175 | ||
Interest-bearing - U.S. | 66,235 | 50,139 | ||
Interest-bearing - non-U.S. | 69,321 | 87,582 | ||
Securities sold under repurchase agreements | 1,082 | 2,842 | ||
Other short-term borrowings | 3,092 | 1,144 | ||
Reported Amount | ||||
Financial Assets: | ||||
Cash and due from banks | 3,597 | 2,107 | ||
Interest-bearing deposits with banks | 73,040 | 67,227 | ||
Securities purchased under resale agreements | 4,679 | 3,241 | ||
Investment securities held-to-maturity | 41,914 | 40,458 | ||
Net loans (excluding leases) | 25,722 | 22,577 | ||
Other | 8,500 | |||
Financial Liabilities: | ||||
Non-interest-bearing | 44,804 | 47,175 | ||
Interest-bearing - U.S. | 66,235 | 50,139 | ||
Interest-bearing - non-U.S. | 69,321 | 87,582 | ||
Securities sold under repurchase agreements | 1,082 | 2,842 | ||
Other short-term borrowings | 3,092 | 1,144 | ||
Long-term debt | 11,093 | 11,620 | ||
Other | 8,500 | |||
Estimated Fair Value | ||||
Financial Assets: | ||||
Cash and due from banks | 2,107 | |||
Interest-bearing deposits with banks | 67,227 | |||
Securities purchased under resale agreements | 3,241 | |||
Investment securities held-to-maturity | 40,255 | |||
Net loans (excluding leases) | 22,482 | |||
Financial Liabilities: | ||||
Non-interest-bearing | 47,175 | |||
Interest-bearing - U.S. | 50,139 | |||
Interest-bearing - non-U.S. | 87,582 | |||
Securities sold under repurchase agreements | 2,842 | |||
Other short-term borrowings | 1,144 | |||
Long-term debt | 11,919 | |||
Estimated Fair Value | Quoted Market Prices in Active Markets (Level 1) | ||||
Financial Assets: | ||||
Cash and due from banks | 3,597 | 2,107 | ||
Interest-bearing deposits with banks | 0 | 0 | ||
Securities purchased under resale agreements | 0 | 0 | ||
Investment securities held-to-maturity | 14,541 | 16,814 | ||
Net loans (excluding leases) | 0 | 0 | ||
Other | 0 | |||
Financial Liabilities: | ||||
Non-interest-bearing | 0 | |||
Interest-bearing - U.S. | 0 | |||
Interest-bearing - non-U.S. | 0 | |||
Securities sold under repurchase agreements | 0 | |||
Other short-term borrowings | 0 | |||
Long-term debt | 0 | |||
Other | 0 | |||
Estimated Fair Value | Pricing Methods with Significant Observable Market Inputs (Level 2) | ||||
Financial Assets: | ||||
Cash and due from banks | 0 | |||
Interest-bearing deposits with banks | 73,040 | 67,227 | ||
Securities purchased under resale agreements | 4,679 | 3,241 | ||
Investment securities held-to-maturity | 26,688 | 23,318 | ||
Net loans (excluding leases) | 24,648 | 22,431 | ||
Other | 8,500 | |||
Financial Liabilities: | ||||
Non-interest-bearing | 44,804 | 47,175 | ||
Interest-bearing - U.S. | 66,235 | 50,139 | ||
Interest-bearing - non-U.S. | 69,321 | 87,582 | ||
Securities sold under repurchase agreements | 1,082 | 2,842 | ||
Other short-term borrowings | 3,092 | 1,144 | ||
Long-term debt | 10,865 | 11,639 | ||
Other | 8,500 | |||
Estimated Fair Value | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | ||||
Financial Assets: | ||||
Cash and due from banks | 0 | |||
Interest-bearing deposits with banks | 0 | |||
Securities purchased under resale agreements | 0 | |||
Investment securities held-to-maturity | 122 | 123 | ||
Net loans (excluding leases) | 913 | 51 | ||
Other | 0 | |||
Financial Liabilities: | ||||
Non-interest-bearing | 0 | |||
Interest-bearing - U.S. | 0 | |||
Interest-bearing - non-U.S. | 0 | |||
Securities sold under repurchase agreements | 0 | |||
Other short-term borrowings | 0 | |||
Long-term debt | 183 | 280 | ||
Other | 0 | |||
Nonrecurring Measurement Basis | Estimated Fair Value | ||||
Financial Assets: | ||||
Net loans (excluding leases) | $ 10 | $ 3 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2018USD ($) | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Pledged securities not separately reported | $ 39,000,000,000 | $ 48,000,000,000 | ||
Investment securities available-for-sale | 45,148,000,000 | 57,121,000,000 | ||
Debt securities, held-to-maturity | 41,914,000,000 | 40,458,000,000 | ||
Debt securities, available-for-sale, transferred security, at carrying value | 2,100,000,000 | 496,000,000 | ||
Debt securities, available-for-sale, unrealized gain (loss) | 53,000,000 | 2,800,000 | ||
Losses from other-than-temporary impairment | 3,000,000 | 0 | $ 3,000,000 | |
Gross pre-tax unrealized losses | $ 1,056,000,000 | |||
Number of securities in loss position | security | 1,129 | |||
Agency Securities | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Losses from other-than-temporary impairment | $ 0 | 0 | 0 | |
US Treasury and federal agencies, mortgage-backed securities | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Investment securities available-for-sale | 15,968,000,000 | 10,872,000,000 | ||
Debt securities, held-to-maturity | 21,647,000,000 | 16,651,000,000 | ||
Securities sold | 26,000,000,000 | 12,200,000,000 | ||
Pre-tax gain on sale of securities | 9,000,000 | 39,000,000 | ||
Federal family education loan program | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Losses from other-than-temporary impairment | $ 0 | 0 | 0 | |
Asset backed securities, average remaining,term | 5 years | |||
Asset-backed securities, student loans | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Investment securities available-for-sale | $ 541,000,000 | 3,358,000,000 | ||
Debt securities, held-to-maturity | 3,191,000,000 | 3,047,000,000 | ||
Losses from other-than-temporary impairment | 0 | 0 | 0 | |
Total exposure (less than) | 4,000,000 | |||
Non-U.S. debt securities, mortgage-backed securities | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Investment securities available-for-sale | 1,682,000,000 | 6,695,000,000 | ||
Debt securities, held-to-maturity | 638,000,000 | 939,000,000 | ||
Losses from other-than-temporary impairment | 3,000,000 | 1,000,000 | 2,000,000 | |
State and political subdivisions | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Investment securities available-for-sale | 1,918,000,000 | 9,151,000,000 | ||
Losses from other-than-temporary impairment | 0 | 0 | 0 | |
Residential Mortgage Backed Securities | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Losses from other-than-temporary impairment | 0 | 0 | 0 | |
Commercial Mortgage Backed Securities | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Losses from other-than-temporary impairment | $ 0 | $ 0 | $ 1,000,000 | |
Minimum | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Debt securities, available-for-sale, security term | 10 years | |||
Maximum | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Debt securities, available-for-sale, security term | 42 years | |||
Accounting Standards Update 2016-01 | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Money market funds reclassified | $ 397,000,000 | |||
Available-for-sale equity securities reclassified | $ 46,000,000 | |||
Accounting Standards Update 2017-12 | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Investment securities available-for-sale | $ 1,200,000,000 | |||
Debt securities, held-to-maturity | (1,200,000,000) | |||
Loss from sale of HTM securities | $ (36,000,000) |
Investment Securities - Schedul
Investment Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | $ 45,359 | $ 56,952 |
Available for sale, gross unrealized gains | 107 | 437 |
Available for sale, gross unrealized losses | 318 | 268 |
Investment securities available-for-sale | 45,148 | 57,121 |
Held to maturity, amortized cost | 41,914 | 40,458 |
Held to maturity, gross unrealized gains | 175 | 186 |
Held to maturity, gross unrealized losses | 738 | 389 |
Investment securities held-to-maturity | 41,351 | 40,255 |
US Treasury and federal agencies, direct obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,035 | 222 |
Available for sale, gross unrealized gains | 4 | 2 |
Available for sale, gross unrealized losses | 0 | 1 |
Investment securities available-for-sale | 1,039 | 223 |
Held to maturity, amortized cost | 14,794 | 17,028 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | 199 | 143 |
Investment securities held-to-maturity | 14,595 | 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 | 16,112 | 10,975 |
Available for sale, gross unrealized gains | 37 | 26 |
Available for sale, gross unrealized losses | 181 | 129 |
Investment securities available-for-sale | 15,968 | 10,872 |
Held to maturity, amortized cost | 21,647 | 16,651 |
Held to maturity, gross unrealized gains | 24 | 22 |
Held to maturity, gross unrealized losses | 518 | 225 |
Investment securities held-to-maturity | 21,153 | 16,448 |
Total U.S. Treasury and federal agencies | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 17,147 | 11,197 |
Available for sale, gross unrealized gains | 41 | 28 |
Available for sale, gross unrealized losses | 181 | 130 |
Investment securities available-for-sale | 17,007 | 11,095 |
Held to maturity, amortized cost | 36,441 | 33,679 |
Held to maturity, gross unrealized gains | 24 | 22 |
Held to maturity, gross unrealized losses | 717 | 368 |
Investment securities held-to-maturity | 35,748 | 33,333 |
Asset-backed securities, student loans | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 538 | 3,325 |
Available for sale, gross unrealized gains | 4 | 37 |
Available for sale, gross unrealized losses | 1 | 4 |
Investment securities available-for-sale | 541 | 3,358 |
Held to maturity, amortized cost | 3,191 | 3,047 |
Held to maturity, gross unrealized gains | 35 | 32 |
Held to maturity, gross unrealized losses | 10 | 9 |
Investment securities held-to-maturity | 3,216 | 3,070 |
Asset-backed securities, credit cards | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 609 | 1,565 |
Available for sale, gross unrealized gains | 0 | 2 |
Available for sale, gross unrealized losses | 26 | 25 |
Investment securities available-for-sale | 583 | 1,542 |
Held to maturity, amortized cost | 193 | 798 |
Held to maturity, gross unrealized gains | 0 | 2 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 193 | 800 |
Asset-backed securities, collateralized loan obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 594 | 1,440 |
Available for sale, gross unrealized gains | 1 | 7 |
Available for sale, gross unrealized losses | 2 | 0 |
Investment securities available-for-sale | 593 | 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 | 1,741 | 6,330 |
Available for sale, gross unrealized gains | 5 | 46 |
Available for sale, gross unrealized losses | 29 | 29 |
Investment securities available-for-sale | 1,717 | 6,347 |
Held to maturity, amortized cost | 3,385 | 3,846 |
Held to maturity, gross unrealized gains | 35 | 34 |
Held to maturity, gross unrealized losses | 10 | 9 |
Investment securities held-to-maturity | 3,410 | 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 | 1,687 | 6,664 |
Available for sale, gross unrealized gains | 0 | 36 |
Available for sale, gross unrealized losses | 5 | 5 |
Investment securities available-for-sale | 1,682 | 6,695 |
Held to maturity, amortized cost | 638 | 939 |
Held to maturity, gross unrealized gains | 77 | 82 |
Held to maturity, gross unrealized losses | 9 | 6 |
Investment securities held-to-maturity | 706 | 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 | 1,580 | 2,942 |
Available for sale, gross unrealized gains | 0 | 5 |
Available for sale, gross unrealized losses | 6 | 0 |
Investment securities available-for-sale | 1,574 | 2,947 |
Held to maturity, amortized cost | 223 | 263 |
Held to maturity, gross unrealized gains | 0 | 1 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 223 | 264 |
Non-U.S. debt securities, government securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 12,816 | 10,754 |
Available for sale, gross unrealized gains | 22 | 16 |
Available for sale, gross unrealized losses | 45 | 49 |
Investment securities available-for-sale | 12,793 | 10,721 |
Held to maturity, amortized cost | 358 | 474 |
Held to maturity, gross unrealized gains | 1 | 2 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 359 | 476 |
Non-U.S. debt securities, other | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 6,600 | 6,076 |
Available for sale, gross unrealized gains | 18 | 38 |
Available for sale, gross unrealized losses | 16 | 6 |
Investment securities available-for-sale | 6,602 | 6,108 |
Held to maturity, amortized cost | 46 | 48 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 46 | 48 |
Total non-U.S. debt securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 22,683 | 26,436 |
Available for sale, gross unrealized gains | 40 | 95 |
Available for sale, gross unrealized losses | 72 | 60 |
Investment securities available-for-sale | 22,651 | 26,471 |
Held to maturity, amortized cost | 1,265 | 1,724 |
Held to maturity, gross unrealized gains | 78 | 85 |
Held to maturity, gross unrealized losses | 9 | 6 |
Investment securities held-to-maturity | 1,334 | 1,803 |
State and political subdivisions | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,905 | 8,929 |
Available for sale, gross unrealized gains | 20 | 245 |
Available for sale, gross unrealized losses | 7 | 23 |
Investment securities available-for-sale | 1,918 | 9,151 |
Collateralized mortgage obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 200 | 1,060 |
Available for sale, gross unrealized gains | 0 | 3 |
Available for sale, gross unrealized losses | 3 | 9 |
Investment securities available-for-sale | 197 | 1,054 |
Held to maturity, amortized cost | 823 | 1,209 |
Held to maturity, gross unrealized gains | 38 | 45 |
Held to maturity, gross unrealized losses | 2 | 6 |
Investment securities held-to-maturity | 859 | 1,248 |
Other U.S. debt securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,683 | 2,563 |
Available for sale, gross unrealized gains | 1 | 12 |
Available for sale, gross unrealized losses | 26 | 15 |
Investment securities available-for-sale | 1,658 | 2,560 |
U.S. equity securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 40 | |
Available for sale, gross unrealized gains | 8 | |
Available for sale, gross unrealized losses | 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 | 397 | |
Available for sale, gross unrealized gains | 0 | |
Available for sale, gross unrealized losses | 0 | |
Investment securities available-for-sale | 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 | $ 1,295 | 3,537 |
Non-U.S. debt securities, other | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Investment securities available-for-sale | 1,331 | 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 | $ 1,052 | $ 1,247 |
Investment Securities - Sched_2
Investment Securities - Schedule of Gross Pre-Tax Unrealized Losses on Investment Securities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | $ 17,740 | $ 18,094 |
Available for sale, gross unrealized losses less than 12 months | 110 | 131 |
Available for sale, fair value 12 months or longer | 6,886 | 6,391 |
Available for sale, gross unrealized losses 12 months or longer | 208 | 137 |
Available for sale, fair value total | 24,626 | 24,485 |
Available for sale, gross unrealized losses total | 318 | 268 |
Held to maturity, fair value less than 12 months | 9,461 | 21,664 |
Held-to-maturity, gross unrealized losses, less than 12 months | 155 | 150 |
Held to maturity, fair value 12 months or longer | 23,757 | 9,373 |
Held to maturity, gross unrealized losses 12 months or longer | 583 | 239 |
Held to maturity, fair value total | 33,218 | 31,037 |
Held to maturity, gross unrealized losses total | 738 | 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 | 2,192 | 14,439 |
Held-to-maturity, gross unrealized losses, less than 12 months | 45 | 109 |
Held to maturity, fair value 12 months or longer | 12,403 | 2,447 |
Held to maturity, gross unrealized losses 12 months or longer | 154 | 34 |
Held to maturity, fair value total | 14,595 | 16,886 |
Held to maturity, gross unrealized losses total | 199 | 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 | 5,058 | 5,161 |
Available for sale, gross unrealized losses less than 12 months | 21 | 31 |
Available for sale, fair value 12 months or longer | 5,089 | 3,341 |
Available for sale, gross unrealized losses 12 months or longer | 160 | 98 |
Available for sale, fair value total | 10,147 | 8,502 |
Available for sale, gross unrealized losses total | 181 | 129 |
Held to maturity, fair value less than 12 months | 6,502 | 6,785 |
Held-to-maturity, gross unrealized losses, less than 12 months | 103 | 38 |
Held to maturity, fair value 12 months or longer | 10,648 | 5,988 |
Held to maturity, gross unrealized losses 12 months or longer | 415 | 187 |
Held to maturity, fair value total | 17,150 | 12,773 |
Held to maturity, gross unrealized losses total | 518 | 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 | 5,058 | 5,161 |
Available for sale, gross unrealized losses less than 12 months | 21 | 31 |
Available for sale, fair value 12 months or longer | 5,089 | 3,408 |
Available for sale, gross unrealized losses 12 months or longer | 160 | 99 |
Available for sale, fair value total | 10,147 | 8,569 |
Available for sale, gross unrealized losses total | 181 | 130 |
Held to maturity, fair value less than 12 months | 8,694 | 21,224 |
Held-to-maturity, gross unrealized losses, less than 12 months | 148 | 147 |
Held to maturity, fair value 12 months or longer | 23,051 | 8,435 |
Held to maturity, gross unrealized losses 12 months or longer | 569 | 221 |
Held to maturity, fair value total | 31,745 | 29,659 |
Held to maturity, gross unrealized losses total | 717 | 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 | 106 | 0 |
Available for sale, gross unrealized losses less than 12 months | 0 | 0 |
Available for sale, fair value 12 months or longer | 218 | 769 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 4 |
Available for sale, fair value total | 324 | 769 |
Available for sale, gross unrealized losses total | 1 | 4 |
Held to maturity, fair value less than 12 months | 481 | 440 |
Held-to-maturity, gross unrealized losses, less than 12 months | 4 | 3 |
Held to maturity, fair value 12 months or longer | 536 | 423 |
Held to maturity, gross unrealized losses 12 months or longer | 6 | 6 |
Held to maturity, fair value total | 1,017 | 863 |
Held to maturity, gross unrealized losses total | 10 | 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 | 90 | 1,289 |
Available for sale, gross unrealized losses less than 12 months | 0 | 25 |
Available for sale, fair value 12 months or longer | 493 | 0 |
Available for sale, gross unrealized losses 12 months or longer | 26 | 0 |
Available for sale, fair value total | 583 | 1,289 |
Available for sale, gross unrealized losses total | 26 | 25 |
Asset-backed securities, collateralized loan obligations | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 548 | |
Available for sale, gross unrealized losses less than 12 months | 2 | |
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 | 548 | |
Available for sale, gross unrealized losses total | 2 | |
Asset-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 744 | 1,289 |
Available for sale, gross unrealized losses less than 12 months | 2 | 25 |
Available for sale, fair value 12 months or longer | 711 | 769 |
Available for sale, gross unrealized losses 12 months or longer | 27 | 4 |
Available for sale, fair value total | 1,455 | 2,058 |
Available for sale, gross unrealized losses total | 29 | 29 |
Held to maturity, fair value less than 12 months | 481 | 440 |
Held-to-maturity, gross unrealized losses, less than 12 months | 4 | 3 |
Held to maturity, fair value 12 months or longer | 536 | 423 |
Held to maturity, gross unrealized losses 12 months or longer | 6 | 6 |
Held to maturity, fair value total | 1,017 | 863 |
Held to maturity, gross unrealized losses total | 10 | 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 | 1,407 | 1,059 |
Available for sale, gross unrealized losses less than 12 months | 4 | 4 |
Available for sale, fair value 12 months or longer | 118 | 469 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 1 |
Available for sale, fair value total | 1,525 | 1,528 |
Available for sale, gross unrealized losses total | 5 | 5 |
Held to maturity, fair value less than 12 months | 184 | 0 |
Held-to-maturity, gross unrealized losses, less than 12 months | 2 | 0 |
Held to maturity, fair value 12 months or longer | 119 | 239 |
Held to maturity, gross unrealized losses 12 months or longer | 7 | 6 |
Held to maturity, fair value total | 303 | 239 |
Held to maturity, gross unrealized losses total | 9 | 6 |
Non-U.S. debt securities, asset-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, gross unrealized losses less than 12 months | 6 | |
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 | 1,479 | |
Available for sale, gross unrealized losses total | 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 | 5,478 | 7,629 |
Available for sale, gross unrealized losses less than 12 months | 45 | 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 | 5,478 | 7,697 |
Available for sale, gross unrealized losses total | 45 | 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 | 2,167 | 816 |
Available for sale, gross unrealized losses less than 12 months | 12 | 4 |
Available for sale, fair value 12 months or longer | 226 | 289 |
Available for sale, gross unrealized losses 12 months or longer | 4 | 2 |
Available for sale, fair value total | 2,393 | 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 | 10,531 | 9,504 |
Available for sale, gross unrealized losses less than 12 months | 67 | 56 |
Available for sale, fair value 12 months or longer | 344 | 826 |
Available for sale, gross unrealized losses 12 months or longer | 5 | 4 |
Available for sale, fair value total | 10,875 | 10,330 |
Available for sale, gross unrealized losses total | 72 | 60 |
Held to maturity, fair value less than 12 months | 184 | 0 |
Held-to-maturity, gross unrealized losses, less than 12 months | 2 | 0 |
Held to maturity, fair value 12 months or longer | 119 | 239 |
Held to maturity, gross unrealized losses 12 months or longer | 7 | 6 |
Held to maturity, fair value total | 303 | 239 |
Held to maturity, gross unrealized losses total | 9 | 6 |
State and political subdivisions | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 365 | 734 |
Available for sale, gross unrealized losses less than 12 months | 3 | 6 |
Available for sale, fair value 12 months or longer | 244 | 901 |
Available for sale, gross unrealized losses 12 months or longer | 4 | 17 |
Available for sale, fair value total | 609 | 1,635 |
Available for sale, gross unrealized losses total | 7 | 23 |
Collateralized mortgage obligations | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 181 | 399 |
Available for sale, gross unrealized losses less than 12 months | 3 | 5 |
Available for sale, fair value 12 months or longer | 14 | 136 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 4 |
Available for sale, fair value total | 195 | 535 |
Available for sale, gross unrealized losses total | 3 | 9 |
Held to maturity, fair value less than 12 months | 102 | 0 |
Held-to-maturity, gross unrealized losses, less than 12 months | 1 | 0 |
Held to maturity, fair value 12 months or longer | 51 | 276 |
Held to maturity, gross unrealized losses 12 months or longer | 1 | 6 |
Held to maturity, fair value total | 153 | 276 |
Held to maturity, gross unrealized losses total | 2 | 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 | 861 | 1,007 |
Available for sale, gross unrealized losses less than 12 months | 14 | 8 |
Available for sale, fair value 12 months or longer | 484 | 345 |
Available for sale, gross unrealized losses 12 months or longer | 12 | 7 |
Available for sale, fair value total | 1,345 | 1,352 |
Available for sale, gross unrealized losses total | $ 26 | 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 - Sched_3
Investment Securities - Schedule of Contractual Maturities of Debt Securities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | $ 5,744 | |
Available for sale, 1 to 5 Years | 16,923 | |
Available for sale, 6 to 10 Years | 7,778 | |
Available for sale, over 10 Years | 14,703 | |
Available-for-sale, fair value | 45,148 | $ 57,121 |
Held to maturity, under 1 Year | 4,646 | |
Held to maturity, 1 to 5 Years | 11,892 | |
Held to maturity, 6 to 10 Years | 1,998 | |
Held to maturity, over 10 Years | 23,378 | |
Held to maturity, amortized cost | 41,914 | 40,458 |
US Treasury and federal agencies, direct obligations | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 224 | |
Available for sale, 1 to 5 Years | 815 | |
Available for sale, 6 to 10 Years | 0 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | 1,039 | 223 |
Held to maturity, under 1 Year | 4,002 | |
Held to maturity, 1 to 5 Years | 10,737 | |
Held to maturity, 6 to 10 Years | 12 | |
Held to maturity, over 10 Years | 43 | |
Held to maturity, amortized cost | 14,794 | 17,028 |
US Treasury and federal agencies, mortgage-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 101 | |
Available for sale, 1 to 5 Years | 802 | |
Available for sale, 6 to 10 Years | 1,884 | |
Available for sale, over 10 Years | 13,181 | |
Available-for-sale, fair value | 15,968 | 10,872 |
Held to maturity, under 1 Year | 33 | |
Held to maturity, 1 to 5 Years | 127 | |
Held to maturity, 6 to 10 Years | 1,697 | |
Held to maturity, over 10 Years | 19,790 | |
Held to maturity, amortized cost | 21,647 | 16,651 |
Total U.S. Treasury and federal agencies | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 325 | |
Available for sale, 1 to 5 Years | 1,617 | |
Available for sale, 6 to 10 Years | 1,884 | |
Available for sale, over 10 Years | 13,181 | |
Available-for-sale, fair value | 17,007 | 11,095 |
Held to maturity, under 1 Year | 4,035 | |
Held to maturity, 1 to 5 Years | 10,864 | |
Held to maturity, 6 to 10 Years | 1,709 | |
Held to maturity, over 10 Years | 19,833 | |
Held to maturity, amortized cost | 36,441 | 33,679 |
Asset-backed securities, student loans | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 57 | |
Available for sale, 1 to 5 Years | 164 | |
Available for sale, 6 to 10 Years | 250 | |
Available for sale, over 10 Years | 70 | |
Available-for-sale, fair value | 541 | 3,358 |
Held to maturity, under 1 Year | 7 | |
Held to maturity, 1 to 5 Years | 291 | |
Held to maturity, 6 to 10 Years | 267 | |
Held to maturity, over 10 Years | 2,626 | |
Held to maturity, amortized cost | 3,191 | 3,047 |
Asset-backed securities, credit cards | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 199 | |
Available for sale, 1 to 5 Years | 294 | |
Available for sale, 6 to 10 Years | 90 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | 583 | 1,542 |
Held to maturity, under 1 Year | 58 | |
Held to maturity, 1 to 5 Years | 135 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 193 | 798 |
Asset-backed securities, collateralized loan obligations | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 0 | |
Available for sale, 1 to 5 Years | 402 | |
Available for sale, 6 to 10 Years | 171 | |
Available for sale, over 10 Years | 20 | |
Available-for-sale, fair value | 593 | 1,447 |
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 | 256 | |
Available for sale, 1 to 5 Years | 860 | |
Available for sale, 6 to 10 Years | 511 | |
Available for sale, over 10 Years | 90 | |
Available-for-sale, fair value | 1,717 | 6,347 |
Held to maturity, under 1 Year | 65 | |
Held to maturity, 1 to 5 Years | 426 | |
Held to maturity, 6 to 10 Years | 267 | |
Held to maturity, over 10 Years | 2,627 | |
Held to maturity, amortized cost | 3,385 | 3,846 |
Non-U.S. debt securities, mortgage-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 139 | |
Available for sale, 1 to 5 Years | 769 | |
Available for sale, 6 to 10 Years | 176 | |
Available for sale, over 10 Years | 598 | |
Available-for-sale, fair value | 1,682 | 6,695 |
Held to maturity, under 1 Year | 160 | |
Held to maturity, 1 to 5 Years | 42 | |
Held to maturity, 6 to 10 Years | 7 | |
Held to maturity, over 10 Years | 429 | |
Held to maturity, amortized cost | 638 | 939 |
Non-U.S. debt securities, asset-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 136 | |
Available for sale, 1 to 5 Years | 698 | |
Available for sale, 6 to 10 Years | 581 | |
Available for sale, over 10 Years | 159 | |
Available-for-sale, fair value | 1,574 | 2,947 |
Held to maturity, under 1 Year | 96 | |
Held to maturity, 1 to 5 Years | 127 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 223 | 263 |
Non-U.S. debt securities, government securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 3,439 | |
Available for sale, 1 to 5 Years | 6,409 | |
Available for sale, 6 to 10 Years | 2,945 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | 12,793 | 10,721 |
Held to maturity, under 1 Year | 243 | |
Held to maturity, 1 to 5 Years | 115 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 358 | 474 |
Non-U.S. debt securities, other | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 1,071 | |
Available for sale, 1 to 5 Years | 4,575 | |
Available for sale, 6 to 10 Years | 937 | |
Available for sale, over 10 Years | 19 | |
Available-for-sale, fair value | 6,602 | 6,108 |
Held to maturity, under 1 Year | 46 | |
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 | 46 | 48 |
Total non-U.S. debt securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 4,785 | |
Available for sale, 1 to 5 Years | 12,451 | |
Available for sale, 6 to 10 Years | 4,639 | |
Available for sale, over 10 Years | 776 | |
Available-for-sale, fair value | 22,651 | 26,471 |
Held to maturity, under 1 Year | 545 | |
Held to maturity, 1 to 5 Years | 284 | |
Held to maturity, 6 to 10 Years | 7 | |
Held to maturity, over 10 Years | 429 | |
Held to maturity, amortized cost | 1,265 | 1,724 |
State and political subdivisions | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 235 | |
Available for sale, 1 to 5 Years | 776 | |
Available for sale, 6 to 10 Years | 446 | |
Available for sale, over 10 Years | 461 | |
Available-for-sale, fair value | 1,918 | 9,151 |
Collateralized mortgage obligations | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 2 | |
Available for sale, 1 to 5 Years | 0 | |
Available for sale, 6 to 10 Years | 0 | |
Available for sale, over 10 Years | 195 | |
Available-for-sale, fair value | 197 | 1,054 |
Held to maturity, under 1 Year | 1 | |
Held to maturity, 1 to 5 Years | 318 | |
Held to maturity, 6 to 10 Years | 15 | |
Held to maturity, over 10 Years | 489 | |
Held to maturity, amortized cost | 823 | 1,209 |
Other U.S. debt securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 141 | |
Available for sale, 1 to 5 Years | 1,219 | |
Available for sale, 6 to 10 Years | 298 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | $ 1,658 | $ 2,560 |
Investment Securities - Gains a
Investment Securities - Gains and Losses Related to Investment Securities (Details) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross realized gains from sales of AFS investment securities | $ 205 | $ 74 | $ 15 |
Gross realized losses from sales of AFS investment securities | (196) | (113) | (5) |
Gross losses from OTTI | 3 | 0 | 2 |
Losses reclassified (from) to other comprehensive income | 0 | 0 | (1) |
Gains (losses) related to investment securities, net | 6 | (39) | 7 |
Impairment associated with expected credit losses | 0 | 0 | (1) |
Impairment associated with adverse changes in timing of expected future cash flows | (3) | 0 | (2) |
Net impairment losses | $ (3) | $ 0 | $ (3) |
Investment Securities - Sched_4
Investment Securities - Schedule of Credit-Related Loss Activity Recognized In Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Balance, beginning of period | $ 77 | $ 79 | $ 105 |
OTTI recognized | 3 | 0 | 2 |
Realized losses on securities sold or matured | (2) | (2) | (28) |
Balance, end of period | $ 78 | $ 77 | $ 79 |
Loans and Leases - Narrative (D
Loans and Leases - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2018USD ($)loan_segmentloan | Dec. 31, 2017USD ($)loan | |
Financing Receivable, Recorded Investment [Line Items] | ||
Net investment in leveraged lease financing | $ | $ 0 | $ 479,000,000 |
Number of loans and leases segments | loan_segment | 3 | |
Loans and leases pledged as collateral | $ | $ 6,500,000,000 | 1,900,000,000 |
Allowance for loan and lease losses | $ | $ 67,000,000 | $ 54,000,000 |
Loans modified in troubled debt restructurings | loan | 0 | 0 |
Number of loans on non-accrual status | loan | 0 | 0 |
Loans more than 90 days past due | loan | 0 | 0 |
Loans and Leases - Net Loans (D
Loans and Leases - Net Loans (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 25,789 | $ 23,294 |
Allowance for loan and lease losses | (67) | (54) |
Loans and leases, net of allowance | 25,722 | 23,240 |
Domestic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans to investment funds | 15,050 | 13,618 |
Senior secured bank loans | 3,490 | 2,923 |
Loans to municipalities | 902 | 2,105 |
Other | 37 | 50 |
Commercial real estate | 874 | 98 |
Lease financing | 0 | 267 |
Total loans and leases | 20,353 | 19,061 |
Non-U.S. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans to investment funds | 4,505 | 3,213 |
Senior secured bank loans | 931 | 624 |
Lease financing | 0 | 396 |
Total loans and leases | $ 5,436 | $ 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 Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 25,789 | $ 23,294 |
Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 24,915 | 22,533 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 874 | 98 |
Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 663 |
Investment grade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 20,473 | 18,627 |
Investment grade | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 19,599 | 17,866 |
Investment grade | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 874 | 98 |
Investment grade | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 663 |
Speculative | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 5,308 | 4,638 |
Speculative | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 5,308 | 4,638 |
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 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 8 | |
Substandard | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 8 | |
Substandard | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | |
Substandard | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 29 | |
Special Mention | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 29 | |
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 | |
Individually evaluated for impairment(1) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 8 | 0 |
Individually evaluated for impairment(1) | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 8 | 0 |
Individually evaluated for impairment(1) | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 0 |
Individually evaluated for impairment(1) | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 0 | 0 |
Collectively evaluated for impairment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 25,781 | 23,294 |
Collectively evaluated for impairment | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 24,907 | 22,533 |
Collectively evaluated for impairment | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 874 | 98 |
Collectively evaluated for impairment | Lease Financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 0 | $ 663 |
Loans and Leases - Schedule of
Loans and Leases - Schedule of Activity In The Allowance For Loan Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 54 | $ 53 | $ 46 |
Provision for loan and lease losses | 15 | 2 | 10 |
Charge-offs | (2) | (1) | (3) |
Ending balance | $ 67 | $ 54 | $ 53 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of other intangible assets | $ 226 | $ 214 | $ 207 |
Client relationships | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 5 years | ||
Client relationships | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 20 years | ||
Technology | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 3 years | ||
Technology | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 10 years | ||
Core deposits | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 16 years | ||
Core deposits | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of intangible assets | 22 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Changes In The Carrying Amount Of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 6,022 | $ 5,814 |
Acquisitions | 1,512 | 17 |
Divestitures and other reductions | (9) | |
Foreign currency translation | (88) | 200 |
Ending balance | 7,446 | 6,022 |
Investment Servicing | ||
Goodwill [Roll Forward] | ||
Beginning balance | 5,752 | 5,550 |
Acquisitions | 1,512 | 17 |
Divestitures and other reductions | (9) | |
Foreign currency translation | (84) | 194 |
Ending balance | 7,180 | 5,752 |
Investment Management | ||
Goodwill [Roll Forward] | ||
Beginning balance | 270 | 264 |
Acquisitions | 0 | 0 |
Divestitures and other reductions | 0 | |
Foreign currency translation | (4) | 6 |
Ending balance | $ 266 | $ 270 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Changes In The Carrying Amount Of Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | $ 1,613 | $ 1,750 | |
Acquisitions | 1,007 | 16 | |
Divestitures | (11) | ||
Amortization | (226) | (214) | $ (207) |
Foreign currency translation | (25) | 72 | |
Ending balance | 2,369 | 1,613 | 1,750 |
Investment Servicing | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | 1,432 | 1,539 | |
Acquisitions | 1,007 | 16 | |
Divestitures | (11) | ||
Amortization | (196) | (183) | |
Foreign currency translation | (25) | 71 | |
Ending balance | 2,218 | 1,432 | 1,539 |
Investment Management | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | 181 | 211 | |
Acquisitions | 0 | 0 | |
Divestitures | 0 | ||
Amortization | (30) | (31) | |
Foreign currency translation | 0 | 1 | |
Ending balance | $ 151 | $ 181 | $ 211 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Gross Carrying Amount, Accumulated Amortization And Net Carrying Amount Of Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 4,430 | $ 3,497 | |
Accumulated Amortization | (2,061) | (1,884) | |
Net Carrying Amount | 2,369 | 1,613 | $ 1,750 |
Client relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 3,262 | 2,669 | |
Accumulated Amortization | (1,605) | (1,470) | |
Net Carrying Amount | 1,657 | 1,199 | |
Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 389 | 47 | |
Accumulated Amortization | (49) | (40) | |
Net Carrying Amount | 340 | 7 | |
Core deposits | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 676 | 686 | |
Accumulated Amortization | (350) | (320) | |
Net Carrying Amount | 326 | 366 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 103 | 95 | |
Accumulated Amortization | (57) | (54) | |
Net Carrying Amount | $ 46 | $ 41 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Amortization Expense (Details) $ in Millions | Dec. 31, 2018USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2019 | $ 245 |
2020 | 243 |
2021 | 236 |
2022 | 233 |
2023 | $ 232 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Other Assets [Abstract] | ||
Securities borrowed | $ 19,575 | $ 19,404 |
Derivative instruments, net | 5,189 | 4,013 |
Bank-owned life insurance | 3,323 | 3,242 |
Investments in joint ventures and other unconsolidated entities | 2,882 | 2,226 |
Collateral, net | 1,354 | 473 |
Receivable for securities settlement | 531 | 188 |
Prepaid expenses | 493 | 364 |
Accounts receivable | 343 | 348 |
Income taxes receivable | 129 | 97 |
Deferred tax assets, net of valuation allowance | 113 | 113 |
Deposits with clearing organizations | 58 | 120 |
Other | 414 | 397 |
Total | $ 34,404 | $ 30,985 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Demand deposits of $100,000 or more | $ 46,400 | $ 39,730 |
Demand deposit overdrafts | 5,440 | 3,240 |
Non-U.S. | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Demand deposits of $100,000 or more | 314 | 252 |
Wholesale CDs | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Demand deposits of $100,000 or more | 4,520 | 4,750 |
Customer Deposits | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Demand deposits of $100,000 or more | $ 41,570 | $ 34,730 |
Short-Term Borrowings - Narrati
Short-Term Borrowings - Narrative (Details) $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2017USD ($) |
Short-term Debt [Line Items] | |||
Weighted-average interest rate as of year-end | 0.88% | 0.88% | 0.25% |
Average balance of securities purchased under agreement to resell and securities sold under agreement to repurchase | $ 35,740,000,000 | $ 31,150,000,000 | |
Maximum borrowing on line of credit | 1,030,000,000 | $ 1,400 | |
Balance on line of credit | 0 | $ 0 | |
U.S. Government Securities Sold | |||
Short-term Debt [Line Items] | |||
Fair value of overnight maturity | $ 1,100,000,000 |
Short-Term Borrowings - Outstan
Short-Term Borrowings - Outstanding and weighted-average interest rates of short-term borrowings (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Short-term Debt [Line Items] | ||||
Weighted-average interest rate as of year-end | 0.88% | 0.25% | ||
Securities Sold Under Repurchase Agreements | ||||
Short-term Debt [Line Items] | ||||
Balance as of December 31 | $ 1,082 | $ 2,842 | $ 4,400 | |
Maximum outstanding as of any month-end | $ 3,441 | 4,302 | 5,572 | |
Average outstanding during the year | $ 2,048 | $ 3,683 | $ 4,113 | |
Weighted-average interest rate as of year-end | 1.38% | 0.03% | 0.04% | |
Weighted-average interest rate during the year | 0.62% | 0.05% | 0.02% | |
Tax-Exempt Investment Program | ||||
Short-term Debt [Line Items] | ||||
Balance as of December 31 | $ 931 | $ 1,078 | 1,158 | |
Maximum outstanding as of any month-end | $ 1,078 | 1,158 | 1,726 | |
Average outstanding during the year | $ 1,023 | $ 1,127 | $ 1,512 | |
Weighted-average interest rate as of year-end | 1.74% | 1.45% | 0.67% | |
Weighted-average interest rate during the year | 1.46% | 0.79% | 0.36% | |
Other | ||||
Short-term Debt [Line Items] | ||||
Balance as of December 31 | $ 2,000 | $ 0 | $ 0 | |
Maximum outstanding as of any month-end | $ 2,000 | 0 | 29 | |
Average outstanding during the year | $ 1 | $ 31 | ||
Weighted-average interest rate as of year-end | 2.68% | 0.00% | 0.00% | |
Weighted-average interest rate during the year | 0.00% | 0.17% |
Short-Term Borrowings - Overnig
Short-Term Borrowings - Overnight maturity (Details) $ in Millions | Dec. 31, 2018USD ($) |
U.S. Government Securities Sold | |
Short-term Debt [Line Items] | |
Amortized cost of overnight maturity | $ 1,127 |
Fair value of overnight maturity | 1,100 |
Repurchase Agreements | |
Short-term Debt [Line Items] | |
Amortized cost of overnight maturity | $ 1,082 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 11,093 | $ 11,620 |
Fair Value Hedges | ||
Debt Instrument [Line Items] | ||
Increase (decrease) in carrying value of long-term debt | $ (157) | (87) |
Senior notes | 3.55% notes due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 3.55% | |
Senior notes | 2.55% notes due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 2.55% | |
Senior notes | 3.7% notes due in 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 3.70% | |
Senior notes | 3.3% notes due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 3.30% | |
Senior notes | 2.653% notes due 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 2.653% | |
Senior notes | 4.375% notes due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 4.375% | |
Senior notes | 1.95% Notes Due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 1.95% | |
Senior notes | 2.65% notes due 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 2.65% | |
Senior notes | 4.141% Notes Due 2029 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 4.141% | |
Senior notes | 3.776% Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 3.776% | |
Senior notes | 7.35% notes due 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 7.35% | |
Senior notes | 1.35% notes due 2018 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 1.35% | |
Subordinated note | 3.1% subordinated notes due 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 3.10% | |
Subordinated note | 5.25% subordinated notes due 2018 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 5.25% | |
Junior Subordinated Debt | 4.956% junior subordinated debentures due 2018 | ||
Debt Instrument [Line Items] | ||
Interest rate on debt | 4.956% | |
Parent Company and Non-banking Subsidiaries | Senior notes | 3.55% notes due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,268 | 1,287 |
Parent Company and Non-banking Subsidiaries | Senior notes | 2.55% notes due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,177 | 1,184 |
Parent Company and Non-banking Subsidiaries | Senior notes | 3.7% notes due in 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,006 | 1,021 |
Parent Company and Non-banking Subsidiaries | Senior notes | 3.3% notes due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 979 | 993 |
Parent Company and Non-banking Subsidiaries | Senior notes | 2.653% notes due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 734 | 740 |
Parent Company and Non-banking Subsidiaries | Senior notes | 4.375% notes due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 731 | 734 |
Parent Company and Non-banking Subsidiaries | Senior notes | 1.95% Notes Due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 725 | 724 |
Parent Company and Non-banking Subsidiaries | Senior notes | 2.65% notes due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 698 | 706 |
Parent Company and Non-banking Subsidiaries | Senior notes | 4.141% Notes Due 2029 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 513 | 0 |
Parent Company and Non-banking Subsidiaries | Senior notes | 3.776% Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 507 | 0 |
Parent Company and Non-banking Subsidiaries | Senior notes | Floating-rate notes due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 499 | 499 |
Parent Company and Non-banking Subsidiaries | Senior notes | 7.35% notes due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 150 | 150 |
Parent Company and Non-banking Subsidiaries | Senior notes | 1.35% notes due 2018 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 499 |
Parent Company and Non-banking Subsidiaries | Subordinated note | 3.1% subordinated notes due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 972 | 981 |
Parent Company and Non-banking Subsidiaries | Junior Subordinated Debt | Floating-rate subordinated notes due to State Street Capital Trust IV in 2037 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 794 | 793 |
Parent Company and Non-banking Subsidiaries | Junior Subordinated Debt | Floating-rate subordinated notes due to State Street Capital Trust I in 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 150 | 150 |
Parent Company and Non-banking Subsidiaries | Junior Subordinated Debt | 4.956% junior subordinated debentures due 2018 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 502 |
Parent Company and Non-banking Subsidiaries | Capital Lease Obligations | ||
Debt Instrument [Line Items] | ||
Long-term capital leases | 190 | 250 |
State Street Bank | Subordinated note | 5.25% subordinated notes due 2018 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | $ 407 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Capital lease obligation | $ 102 | $ 159 |
Building and Parking Garage | ||
Debt Instrument [Line Items] | ||
Capital lease obligation | $ 190 | $ 244 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 16,807 | $ 11,852 |
LIBOR Indexed Floating Rate Loans | ||
Derivative [Line Items] | ||
Term of debt instrument | 4 years 10 months 24 days | |
Interest rate swap | Fair Value Hedges | ||
Derivative [Line Items] | ||
Notional amount of derivative instruments | $ 9,300 | $ 9,700 |
Credit swap agreements | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 2,100 | |
Cash collateral provided for derivative instruments | 1,100 | |
Maximum additional amount of payments related to termination events | $ 1,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Outstanding Hedges: (Notional Amount) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives not designated as hedging instruments | Interest rate contracts | Futures | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | $ 2,348 | $ 2,392 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Futures | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 49 | 50 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Forward, swap and spot | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 2,238,819 | 1,679,976 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Options purchased | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 578 | 350 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Options written | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 576 | 302 |
Derivatives not designated as hedging instruments | Commodity and Equity Contracts | Commodity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 0 | 16 |
Derivatives not designated as hedging instruments | Commodity and Equity Contracts | Equity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 0 | 50 |
Derivatives not designated as hedging instruments | Other derivative contracts | Stable value contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 26,634 | 26,653 |
Derivatives not designated as hedging instruments | Other derivative contracts | Deferred value awards | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 434 | 473 |
Hedged Items Currently Designated | Interest rate contracts | Swap agreements | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 10,596 | 11,047 |
Hedged Items Currently Designated | Foreign exchange contracts | Forward and swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | $ 3,412 | $ 28,913 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of The Fair Values of Derivative Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 16,399 | $ 11,606 |
Fair value of derivative liabilities | 16,807 | 11,852 |
Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 16,386 | 11,597 |
Fair value of derivative liabilities | 16,522 | 11,467 |
Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 13 | 8 |
Fair value of derivative liabilities | 71 | 100 |
Derivatives not designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 16,369 | 11,478 |
Fair value of derivative liabilities | 16,648 | 11,645 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 16,369 | 11,477 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 16,434 | 11,361 |
Derivatives not designated as hedging instruments | Other derivative contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 1 |
Derivatives not designated as hedging instruments | Other derivative contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 214 | 284 |
Hedged Items Currently Designated | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 30 | 128 |
Hedged Items Currently Designated | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 159 | 207 |
Hedged Items Currently Designated | Foreign exchange contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 17 | 120 |
Hedged Items Currently Designated | Foreign exchange contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 88 | 107 |
Hedged Items Currently Designated | Interest rate contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 13 | 8 |
Hedged Items Currently Designated | Interest rate contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 71 | $ 100 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statement of Income (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | $ 509 | $ 474 | $ 205 | |
Foreign exchange contracts | Foreign exchange trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 723 | 632 | 662 | |
Foreign exchange contracts | Interest expense | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | (41) | 0 | 0 | |
Foreign exchange contracts | Processing fees and other revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 0 | (23) | 0 | |
Interest rate contracts | Foreign exchange trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | (6) | 8 | (7) | |
Interest rate contracts | Processing fees and other revenue | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | (1) | 0 | 1 | |
Credit derivative contracts | Foreign exchange trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 0 | 0 | (1) | |
Other derivative contracts | Foreign exchange trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 5 | 0 | (2) | |
Other derivative contracts | Compensation and employee benefits | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | $ (171) | $ (143) | $ (448) | |
Swap | Foreign exchange contracts | Interest expense | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | $ 15 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Carrying Amount and Cumulative Basis Adjustments for Hedge Accounting (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Hedged Items Currently Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | $ 9,766,000,000 | $ 10,391,000,000 |
Cumulative Hedge Accounting Basis Adjustments | (65,000,000) | 11,000,000 |
Hedged Items Currently Designated | Investment securities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 458,000,000 | 763,000,000 |
Hedged Items Currently Designated | Long-term debt | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 8,270,000,000 | 8,465,000,000 |
Cumulative Hedge Accounting Basis Adjustments | (137,000,000) | (95,000,000) |
Hedged Items Currently Designated | Investment securities available-for-sale | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 1,496,000,000 | 1,926,000,000 |
Cumulative Hedge Accounting Basis Adjustments | 72,000,000 | 106,000,000 |
Hedged Items Currently Designated | Deposits | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 0 | 13,200,000,000 |
Hedged Items No Longer Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 1,247,000,000 | 2,294,000,000 |
Cumulative Hedge Accounting Basis Adjustments | (19,000,000) | 9,000,000 |
Hedged Items No Longer Designated | Long-term debt | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 1,197,000,000 | 1,400,000,000 |
Cumulative Hedge Accounting Basis Adjustments | (20,000,000) | 8,000,000 |
Hedged Items No Longer Designated | Investment securities available-for-sale | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 50,000,000 | 894,000,000 |
Cumulative Hedge Accounting Basis Adjustments | $ 1,000,000 | $ 1,000,000 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Impact on Derivatives and Hedged Items on Consolidated Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | $ (429) | $ 645 | $ 160 |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | 419 | (642) | (155) |
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes | 24 | 22 | 23 |
Investment securities | Processing fees and other revenue | Foreign exchange contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | (74) | 18 | (6) |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | 74 | (18) | 6 |
FX deposit | Processing fees and other revenue | Foreign exchange contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | (328) | 626 | 221 |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | 328 | (626) | (221) |
Investment securities available-for-sale | Processing fees and other revenue | Interest rate contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | 0 | 39 | 43 |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | 0 | (37) | (40) |
Investment securities available-for-sale | Net interest income | Interest rate contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | 31 | 0 | 0 |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | (32) | 0 | 0 |
Long-term debt | Processing fees and other revenue | Interest rate contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | 0 | (38) | (98) |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | 0 | 39 | 100 |
Long-term debt | Net interest income | Interest rate contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | (58) | 0 | 0 |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | $ 49 | $ 0 | $ 0 |
Derivative Financial Instrume_9
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 | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Gain (loss) on derivative recognized in OCI, cash flow hedge | $ (24) | $ (118) | $ (39) |
Gain (loss) on derivative recognized in OCI, net investment hedge | 81 | (160) | 109 |
Gain (loss) on hedges reclassified to income, cash flow hedge | 26 | 26 | 24 |
Gain (loss) on hedges reclassified to income, net investment hedge | 0 | 0 | 0 |
Interest rate contracts | |||
Derivative [Line Items] | |||
Gain (loss) on derivative recognized in OCI, cash flow hedge | (12) | (14) | 0 |
Interest rate contracts | Net interest revenue | |||
Derivative [Line Items] | |||
Gain (loss) on hedges reclassified to income, cash flow hedge | (1) | 2 | 0 |
Foreign exchange contracts | |||
Derivative [Line Items] | |||
Gain (loss) on derivative recognized in OCI, cash flow hedge | (12) | (104) | (39) |
Gain (loss) on derivative recognized in OCI, net investment hedge | 81 | (160) | 109 |
Foreign exchange contracts | Net interest revenue | |||
Derivative [Line Items] | |||
Gain (loss) on hedges reclassified to income, cash flow hedge | 27 | 24 | 24 |
Foreign exchange contracts | Gains (Losses) related to investment securities, net | |||
Derivative [Line Items] | |||
Gain (loss) on hedges reclassified to income, net investment hedge | $ 0 | $ 0 | $ 0 |
Offsetting Arrangements - Narra
Offsetting Arrangements - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Offsetting [Abstract] | ||
Fair Value of securities received as collateral that can be resold or repledged | $ 11,690 | $ 2,470 |
Fair Value of securities received as collateral that have been resold or repledged | $ 5,310 | $ 15 |
Offsetting Arrangements - Asset
Offsetting Arrangements - Assets With Offsetting Arrangements (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | $ 16,399 | $ 11,606 |
Derivatives, Gross Amounts Offset in Statement of Condition | (11,210) | (7,593) |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 5,189 | 4,013 |
Derivatives, Net Amount | 4,969 | 3,889 |
Derivatives, Cash collateral and securities netting, offset | (987) | (2,045) |
Derivatives, Cash collateral and securities netting, Cash and Securities Received | (220) | (124) |
Derivatives, Cash collateral and securities netting, Net | (1,207) | (2,169) |
Resale agreements and securities borrowing, Gross Amounts of Recognized Assets | 116,143 | 70,079 |
Resale agreements and securities borrowing, Gross Amounts Offset in Statement of Condition | (91,889) | (47,434) |
Resale agreements and securities borrowing, Net Amounts of Assets Presented in Statement of Condition | 24,254 | 22,645 |
Resale agreements and securities borrowing, Cash and Securities Received | (22,872) | (22,645) |
Resale agreements and securities borrowing, Net Amount | 1,382 | 0 |
Total derivatives and other financial instruments, Gross Amounts of Recognized Assets | 132,542 | 81,685 |
Total derivatives and other financial instruments, Gross Amounts Offset in Statement of Condition | (103,099) | (55,027) |
Total derivatives and other financial instruments, Net Amounts of Assets Presented in Statement of Condition | 29,443 | 26,658 |
Total derivatives and other financial instruments, Cash and Securities Received(5) | (23,092) | (22,769) |
Total derivatives and other financial instruments, Net Amount | 6,351 | 3,889 |
Securities purchased under resale agreements | 4,679 | 3,241 |
Cash collateral provided for securities borrowing | 19,580 | 19,400 |
Foreign exchange contracts | ||
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | 16,386 | 11,597 |
Derivatives, Gross Amounts Offset in Statement of Condition | (10,223) | (5,548) |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 6,163 | 6,049 |
Derivatives, Net Amount | 6,163 | 6,049 |
Interest rate contracts | ||
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | 13 | 8 |
Derivatives, Gross Amounts Offset in Statement of Condition | 0 | 0 |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 13 | 8 |
Derivatives, Net Amount | 13 | 8 |
Other derivative contracts | ||
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | 0 | 1 |
Derivatives, Gross Amounts Offset in Statement of Condition | 0 | 0 |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 0 | 1 |
Derivatives, Net Amount | $ 0 | $ 1 |
Offsetting Arrangements - Liabi
Offsetting Arrangements - Liabilities With Offsetting Arrangements (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | $ 16,807 | $ 11,852 |
Derivatives, Gross amounts offset in statement of condition | (11,564) | (5,970) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 5,243 | 5,882 |
Derivative, Net Amount | 5,028 | 5,432 |
Derivatives, Cash and collateral securities netting, offset | (1,341) | (422) |
Derivatives, Cash and collateral securities netting, Cash and Securities Provided | (215) | (450) |
Derivatives, Cash and collateral securities netting, Net | (1,556) | (872) |
Resale agreements and securities lending, Gross Amounts of Recognized Liabilities(1)(2) | 104,494 | 54,127 |
Resale agreements and securities lending, Gross Amounts Offset in Statement of Condition(3) | (91,889) | (47,434) |
Resale agreements and securities lending, Net Amounts of Liabilities Presented in Statement of Condition | 12,605 | 6,693 |
Resale agreements and securities lending, Cash and Securities Provided | (11,543) | (4,299) |
Resale agreements and securities lending, Net Amount | 1,062 | 2,394 |
Total derivatives and other financial instruments, Gross Amounts of Recognized Liabilities | 121,301 | 65,979 |
Total derivatives and other financial instruments, Gross Amounts Offset in Statement of Condition | (103,453) | (53,404) |
Total derivatives and other financial instruments, Net Amounts of Liabilities Presented in Statement of Condition | 17,848 | 12,575 |
Total derivatives and other financial instruments, Cash and Securities Provided | (11,758) | (4,749) |
Total derivatives and other financial instruments, Net Amount | 6,090 | 7,826 |
Securities sold under repurchase agreements | 1,082 | 2,842 |
Securities lending, fair value, amount not offset against collateral | 3,900 | |
Foreign exchange contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 16,522 | 11,467 |
Derivatives, Gross amounts offset in statement of condition | (10,223) | (5,548) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 6,299 | 5,919 |
Derivative, Net Amount | 6,299 | 5,919 |
Interest rate contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 71 | 100 |
Derivatives, Gross amounts offset in statement of condition | 0 | 0 |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 71 | 100 |
Derivative, Net Amount | 71 | 100 |
Other derivative contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 214 | 285 |
Derivatives, Gross amounts offset in statement of condition | 0 | 0 |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 214 | 285 |
Derivative, Net Amount | $ 214 | $ 285 |
Offsetting Arrangements - Repo,
Offsetting Arrangements - Repo, Sec Lending Transactions Maturity By Category (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | $ 88,904 | |
Securities lending transactions | 15,590 | |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Gross | 104,494 | |
U.S. Treasury and agency securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 88,904 | |
Securities lending transactions | 249 | |
Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 278 | |
Equity securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 6,563 | |
Other(2) | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 8,500 | |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 88,904 | $ 43,072 |
Securities lending transactions | 15,453 | 11,055 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Gross | 104,357 | 54,127 |
Overnight and Continuous | U.S. Treasury and agency securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 88,904 | 43,072 |
Securities lending transactions | 249 | 0 |
Overnight and Continuous | Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 278 | 35 |
Overnight and Continuous | Equity securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 6,426 | 11,020 |
Overnight and Continuous | Other(2) | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 8,500 | $ 0 |
Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | |
Securities lending transactions | 137 | |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Gross | 137 | |
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 | 137 | |
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 | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||
Unfunded commitments to extend credit, short term | 73.00% | |
Term of unfunded commitment | 1 year | |
Cash collateral provided for securities lending | $ 19,580 | $ 19,400 |
Accrued expenses and other liabilities | ||
Loss Contingencies [Line Items] | ||
Cash collateral received in connection to securities finance activities | $ 11,520 | $ 3,850 |
Commitments and Guarantees - Co
Commitments and Guarantees - Contractual Amounts of Credit-Related Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded credit facilities | $ 28,951 | $ 26,488 |
Indemnified securities financing | 342,337 | 381,817 |
Standby letters of credit | $ 2,985 | $ 3,158 |
Commitments and Guarantees - Sc
Commitments and Guarantees - Schedule Of Repurchase Agreements (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Fair value of indemnified securities financing | $ 342,337 | $ 381,817 |
Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing | 357,893 | 400,828 |
Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements | 42,610 | 61,270 |
Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements | $ 45,064 | $ 65,272 |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | ||||
Accrual of loss contingency | $ 38 | |||
Estimate of possible loss | 300 | |||
Unrecognized tax benefits | 108 | $ 94 | $ 71 | $ 63 |
Shareholder Litigation | ||||
Loss Contingencies [Line Items] | ||||
Amount awarded to other party | 4.9 | |||
Legal Reserve | Invoicing Matter | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | $ 380 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | ||
Investment securities related to state and political subdivisions | $ 1,050 | $ 1,250 |
Variable interest entity, other short-term borrowings | $ 930 | $ 1,080 |
Weighted average life of trusts | 3 years 7 months 6 days | 4 years 7 months 6 days |
Total standby bond purchase agreement committed to trusts | $ 946 | |
VIE - primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 150 | |
Liabilities | 50 | |
VIE - not primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Potential maximum loss exposure of unconsolidated funds | $ 70 | $ 72 |
Shareholders' Equity - Preferre
Shareholders' Equity - Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Jan. 31, 2019 | Sep. 30, 2018 | Apr. 30, 2016 | May 31, 2015 | Nov. 30, 2014 | Feb. 28, 2014 | Aug. 31, 2012 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | ||||||||||
Preferred stock cash dividend | $ 188 | $ 182 | $ 173 | |||||||
Proceeds from issuance of preferred stock, net of issuance costs | $ 495 | $ 0 | $ 493 | |||||||
Series C Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 5,250 | $ 5,250 | ||||||||
Preferred stock cash dividend | $ 26 | $ 26 | ||||||||
Ownership Interest Per Depositary Share | 0.025% | |||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||
Proceeds from issuance of preferred stock, net of issuance costs | $ 488 | |||||||||
Series C Preferred Stock, Depository Share | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 1.32 | $ 1.32 | ||||||||
Shares issued (shares) | 20,000,000 | |||||||||
Liquidation preference per share (USD per share) | $ 25 | |||||||||
Series D Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 5,900 | $ 5,900 | ||||||||
Preferred stock cash dividend | $ 44 | $ 44 | ||||||||
Ownership Interest Per Depositary Share | 0.025% | |||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||
Proceeds from issuance of preferred stock, net of issuance costs | $ 742 | |||||||||
Series D Preferred Stock, Depository Share | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 1.48 | $ 1.48 | ||||||||
Shares issued (shares) | 30,000,000 | |||||||||
Liquidation preference per share (USD per share) | $ 25 | |||||||||
Series E Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 6,000 | $ 6,000 | ||||||||
Preferred stock cash dividend | $ 45 | $ 45 | ||||||||
Ownership Interest Per Depositary Share | 0.025% | |||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||
Proceeds from issuance of preferred stock, net of issuance costs | $ 728 | |||||||||
Series E Preferred Stock, Depository Share | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 1.52 | $ 1.52 | ||||||||
Shares issued (shares) | 30,000,000 | |||||||||
Liquidation preference per share (USD per share) | $ 25 | |||||||||
Series F Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 5,250 | $ 5,250 | ||||||||
Preferred stock cash dividend | $ 40 | $ 40 | ||||||||
Ownership Interest Per Depositary Share | 1.00% | |||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||
Proceeds from issuance of preferred stock, net of issuance costs | $ 742 | |||||||||
Series F Preferred Stock, Depository Share | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 52.5 | $ 52.50 | ||||||||
Shares issued (shares) | 750,000 | |||||||||
Liquidation preference per share (USD per share) | $ 1,000 | |||||||||
Series G Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 5,352 | $ 5,352 | ||||||||
Preferred stock cash dividend | $ 27 | $ 27 | ||||||||
Ownership Interest Per Depositary Share | 0.025% | |||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||
Proceeds from issuance of preferred stock, net of issuance costs | $ 493 | |||||||||
Series G Preferred Stock, Depository Share | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 1.32 | $ 1.32 | ||||||||
Shares issued (shares) | 20,000,000 | |||||||||
Liquidation preference per share (USD per share) | $ 25 | |||||||||
Series H Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 1,219 | $ 0 | ||||||||
Preferred stock cash dividend | $ 6 | $ 0 | ||||||||
Shares issued (shares) | 500,000 | |||||||||
Ownership Interest Per Depositary Share | 1.00% | |||||||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||||||
Proceeds from issuance of preferred stock, net of issuance costs | $ 494 | |||||||||
Series H Preferred Stock, Depository Share | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 12.18 | $ 0 | ||||||||
Shares issued (shares) | 500,000 | |||||||||
Liquidation preference per share (USD per share) | $ 1,000 | |||||||||
Subsequent Event | Series C Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 1,313,000,000 | |||||||||
Preferred stock cash dividend | $ 6 | |||||||||
Subsequent Event | Series C Preferred Stock, Depository Share | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 330,000 | |||||||||
Subsequent Event | Series D Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 1,475,000,000 | |||||||||
Preferred stock cash dividend | $ 11 | |||||||||
Subsequent Event | Series D Preferred Stock, Depository Share | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 370,000 | |||||||||
Subsequent Event | Series E Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 1,500,000,000 | |||||||||
Preferred stock cash dividend | $ 11 | |||||||||
Subsequent Event | Series E Preferred Stock, Depository Share | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 380,000 | |||||||||
Subsequent Event | Series F Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 2,625,000,000 | |||||||||
Preferred stock cash dividend | $ 20 | |||||||||
Subsequent Event | Series F Preferred Stock, Depository Share | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 26,250,000 | |||||||||
Subsequent Event | Series G Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 1,338,000,000 | |||||||||
Preferred stock cash dividend | $ 7 | |||||||||
Subsequent Event | Series G Preferred Stock, Depository Share | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred dividends declared (USD per share) | $ 330,000 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2018 | Apr. 30, 2016 | May 31, 2015 | Nov. 30, 2014 | Feb. 28, 2014 | Aug. 31, 2012 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||||||||
Proceeds from issuance of preferred stock, net of issuance costs | $ 495 | $ 0 | $ 493 | ||||||
Series C Preferred Stock, Depository Share | |||||||||
Class of Stock [Line Items] | |||||||||
Depositary shares issued (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 of issuance costs | $ 488 | ||||||||
Series D Preferred Stock, Depository Share | |||||||||
Class of Stock [Line Items] | |||||||||
Depositary shares issued (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 of issuance costs | $ 742 | ||||||||
Series E Preferred Stock, Depository Share | |||||||||
Class of Stock [Line Items] | |||||||||
Depositary shares issued (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 of issuance costs | $ 728 | ||||||||
Series F Preferred Stock, Depository Share | |||||||||
Class of Stock [Line Items] | |||||||||
Depositary shares issued (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 of issuance costs | $ 742 | ||||||||
Series G Preferred Stock, Depository Share | |||||||||
Class of Stock [Line Items] | |||||||||
Depositary shares issued (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 of issuance costs | $ 493 | ||||||||
Series H Preferred Stock, Depository Share | |||||||||
Class of Stock [Line Items] | |||||||||
Depositary shares issued (shares) | 500,000 | ||||||||
Liquidation preference per share (USD per share) | $ 1,000 | ||||||||
Series H Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Depositary shares issued (shares) | 500,000 | ||||||||
Ownership Interest Per Depositary Share | 1.00% | ||||||||
Liquidation preference per share (USD per share) | $ 100,000 | ||||||||
Proceeds from issuance of preferred stock, net of issuance costs | $ 494 |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Dividends Payable [Line Items] | |||
Preferred stock cash dividend | $ 188 | $ 182 | $ 173 |
Cash dividends declared (in USD per share) | $ 1.78 | $ 1.6 | $ 1.44 |
Common stock dividends | $ 665 | $ 596 | $ 559 |
Series C Preferred Stock | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 5,250 | $ 5,250 | |
Preferred stock cash dividend | $ 26 | $ 26 | |
Series C Preferred Stock, Depository Share | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 1.32 | $ 1.32 | |
Series D Preferred Stock | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 5,900 | $ 5,900 | |
Preferred stock cash dividend | $ 44 | $ 44 | |
Series D Preferred Stock, Depository Share | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 1.48 | $ 1.48 | |
Series E Preferred Stock | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 6,000 | $ 6,000 | |
Preferred stock cash dividend | $ 45 | $ 45 | |
Series E Preferred Stock, Depository Share | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 1.52 | $ 1.52 | |
Series F Preferred Stock | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 5,250 | $ 5,250 | |
Preferred stock cash dividend | $ 40 | $ 40 | |
Series F Preferred Stock, Depository Share | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 52.5 | $ 52.50 | |
Series G Preferred Stock | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 5,352 | $ 5,352 | |
Preferred stock cash dividend | $ 27 | $ 27 | |
Series G Preferred Stock, Depository Share | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 1.32 | $ 1.32 | |
Series H Preferred Stock | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 1,219 | $ 0 | |
Preferred stock cash dividend | $ 6 | $ 0 | |
Series H Preferred Stock, Depository Share | |||
Dividends Payable [Line Items] | |||
Preferred dividends declared (USD per share) | $ 12.18 | $ 0 |
Shareholders' Equity - Common S
Shareholders' Equity - Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Proceeds from issuance of common stock, net of issuance costs | $ 1,150,000,000 | $ 0 | $ 0 | |||
2017 Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Amount of common stock authorized for repurchase | $ 1,400,000,000 | |||||
2018 Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Amount of common stock authorized for repurchase | $ 1,200,000,000 | |||||
Common Stock | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Shares issued (shares) | 13,240 | |||||
Offering price of shares issued (USD per share) | $ 86.93 | |||||
Proceeds from issuance of common stock, net of issuance costs | $ 1,150,000,000 |
Shareholders' Equity - Schedu_3
Shareholders' Equity - Schedule of Common Stock (Details) - 2017 Program $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Equity, Class of Treasury Stock [Line Items] | |
Shares Acquired (in shares) | shares | 3.3 |
Average Cost per Share (USD per share) | $ / shares | $ 105.31 |
Total Acquired | $ | $ 350 |
Shareholders' Equity - Schedu_4
Shareholders' Equity - Schedule of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Equity [Abstract] | |||
Net unrealized (losses) gains on cash flow hedges | $ (89) | $ (56) | $ 229 |
Net unrealized (losses) gains on available-for-sale securities portfolio | (193) | 148 | (225) |
Net unrealized gains related to reclassified available-for-sale securities | 58 | 19 | 25 |
Net unrealized (losses) gains on available-for-sale securities | (135) | 167 | (200) |
Net unrealized (losses) on available-for-sale securities designated in fair value hedges | (40) | (64) | (86) |
Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries | 16 | (65) | 95 |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit | (2) | (6) | (9) |
Net unrealized (losses) on retirement plans | (143) | (170) | (194) |
Foreign currency translation | (963) | (815) | (1,875) |
Total | $ (1,356) | $ (1,009) | $ (2,040) |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 22,270 | $ 21,193 |
Other comprehensive income (loss) before reclassifications | (379) | 1,029 |
Amounts reclassified into (out of) earnings | 32 | 2 |
Other comprehensive income (loss) | (347) | 1,031 |
Ending balance | 24,737 | 22,270 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (1,009) | (2,040) |
Ending balance | (1,356) | (1,009) |
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 | (33) | (285) |
Amounts reclassified into (out of) earnings | 0 | 0 |
Other comprehensive income (loss) | (33) | (285) |
Ending balance | (89) | (56) |
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 | (285) | 412 |
Amounts reclassified into (out of) earnings | 7 | (23) |
Other comprehensive income (loss) | (278) | 389 |
Ending balance | (175) | 103 |
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 | 81 | (160) |
Amounts reclassified into (out of) earnings | 0 | 0 |
Other comprehensive income (loss) | 81 | (160) |
Ending balance | 16 | (65) |
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 | 6 | 3 |
Amounts reclassified into (out of) earnings | (2) | 0 |
Other comprehensive income (loss) | 4 | 3 |
Ending balance | (2) | (6) |
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 | 0 | 0 |
Amounts reclassified into (out of) earnings | 27 | 24 |
Other comprehensive income (loss) | 27 | 24 |
Ending balance | (143) | (170) |
Foreign Currency Translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (815) | (1,875) |
Other comprehensive income (loss) before reclassifications | (148) | 1,059 |
Amounts reclassified into (out of) earnings | 0 | 1 |
Other comprehensive income (loss) | (148) | 1,060 |
Ending balance | $ (963) | $ (815) |
Shareholders' Equity - Adjustme
Shareholders' Equity - Adjustments to Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||
Gains (losses) from sales of available-for-sale securities, net | $ 9 | $ (39) | $ 10 |
Losses reclassified (from) to other comprehensive income | 0 | 0 | (1) |
Compensation and employee benefits expenses | 4,780 | 4,394 | 4,353 |
Processing fees and other | 438 | 343 | 174 |
Net income | 2,593 | 2,156 | $ 2,138 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Class of Stock [Line Items] | |||
Net income | 32 | 2 | |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Available-for-Sale Securities | |||
Class of Stock [Line Items] | |||
Gains (losses) from sales of available-for-sale securities, net | 7 | (23) | |
Net realized gains from sales of available-for-sale securities, taxes | (2) | 16 | |
Reclassification out of Accumulated Other Comprehensive Income | Other-Than-Temporary Impairment on Securities | |||
Class of Stock [Line Items] | |||
Losses reclassified (from) to other comprehensive income | (2) | 0 | |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, taxes | 1 | 0 | |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Actuarial Losses | |||
Class of Stock [Line Items] | |||
Compensation and employee benefits expenses | 27 | 24 | |
Amortization of actuarial losses, taxes | (8) | (8) | |
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Translation | |||
Class of Stock [Line Items] | |||
Processing fees and other | $ 0 | $ 1 |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Retained earnings | $ 20,553 | $ 18,809 |
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% |
Basel III Advanced Approaches | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 10,565 | $ 10,302 |
Retained earnings | 20,606 | 18,856 |
Accumulated other comprehensive income (loss) | (1,332) | (972) |
Treasury stock, at cost | (8,715) | (9,029) |
Total | 21,124 | 19,157 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (9,350) | (6,877) |
Other adjustments | (194) | (76) |
Common equity tier 1 capital | 11,580 | 12,204 |
Preferred stock | 3,690 | 3,196 |
Trust preferred capital securities subject to phase-out from tier 1 capital | 0 | 0 |
Other adjustments | 0 | (18) |
Tier 1 capital | 15,270 | 15,382 |
Qualifying subordinated long-term debt | 778 | 980 |
Trust preferred capital securities phased out of tier 1 capital | 0 | 0 |
ALLL and other | 14 | 4 |
Other adjustments | 0 | 1 |
Total capital | 16,062 | 16,367 |
Credit risk | 47,738 | 52,000 |
Operational risk | 46,060 | 45,822 |
Market risk | 1,517 | 1,334 |
Total RWA | 95,315 | 99,156 |
Adjusted quarterly average assets | $ 211,924 | $ 209,328 |
Common equity tier 1 capital | 12.10% | 12.30% |
Tier 1 capital | 16.00% | 15.50% |
Total capital | 16.90% | 16.50% |
Basel III Standardized Approach | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 10,565 | $ 10,302 |
Retained earnings | 20,606 | 18,856 |
Accumulated other comprehensive income (loss) | (1,332) | (972) |
Treasury stock, at cost | (8,715) | (9,029) |
Total | 21,124 | 19,157 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (9,350) | (6,877) |
Other adjustments | (194) | (76) |
Common equity tier 1 capital | 11,580 | 12,204 |
Preferred stock | 3,690 | 3,196 |
Trust preferred capital securities subject to phase-out from tier 1 capital | 0 | 0 |
Other adjustments | 0 | (18) |
Tier 1 capital | 15,270 | 15,382 |
Qualifying subordinated long-term debt | 778 | 980 |
Trust preferred capital securities phased out of tier 1 capital | 0 | 0 |
ALLL and other | 83 | 72 |
Other adjustments | 0 | 1 |
Total capital | 16,131 | 16,435 |
Credit risk | 97,303 | 101,349 |
Market risk | 1,517 | 1,334 |
Total RWA | 98,820 | 102,683 |
Adjusted quarterly average assets | $ 211,924 | $ 209,328 |
Common equity tier 1 capital | 11.70% | 11.90% |
Tier 1 capital | 15.50% | 15.00% |
Total capital | 16.30% | 16.00% |
State Street Bank | Basel III Advanced Approaches | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 12,894 | $ 11,612 |
Retained earnings | 14,261 | 12,312 |
Accumulated other comprehensive income (loss) | (1,112) | (809) |
Treasury stock, at cost | 0 | 0 |
Total | 26,043 | 23,115 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (9,073) | (6,579) |
Other adjustments | (29) | (5) |
Common equity tier 1 capital | 16,941 | 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 | 16,941 | 16,531 |
Qualifying subordinated long-term debt | 776 | 983 |
Trust preferred capital securities phased out of tier 1 capital | 0 | 0 |
ALLL and other | 11 | 0 |
Other adjustments | 0 | 0 |
Total capital | 17,728 | 17,514 |
Credit risk | 45,565 | 49,489 |
Operational risk | 44,494 | 45,295 |
Market risk | 1,517 | 1,334 |
Total RWA | 91,576 | 96,118 |
Adjusted quarterly average assets | $ 209,413 | $ 206,070 |
Common equity tier 1 capital | 18.50% | 17.20% |
Tier 1 capital | 18.50% | 17.20% |
Total capital | 19.40% | 18.20% |
State Street Bank | Basel III Standardized Approach | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 12,894 | $ 11,612 |
Retained earnings | 14,261 | 12,312 |
Accumulated other comprehensive income (loss) | (1,112) | (809) |
Treasury stock, at cost | 0 | 0 |
Total | 26,043 | 23,115 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (9,073) | (6,579) |
Other adjustments | (29) | (5) |
Common equity tier 1 capital | 16,941 | 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 | 16,941 | 16,531 |
Qualifying subordinated long-term debt | 776 | 983 |
Trust preferred capital securities phased out of tier 1 capital | 0 | 0 |
ALLL and other | 83 | 72 |
Other adjustments | 0 | 0 |
Total capital | 17,800 | 17,586 |
Credit risk | 94,776 | 98,433 |
Market risk | 1,517 | 1,334 |
Total RWA | 96,293 | 99,767 |
Adjusted quarterly average assets | $ 209,413 | $ 206,070 |
Common equity tier 1 capital | 17.60% | 16.60% |
Tier 1 capital | 17.60% | 16.60% |
Total capital | 18.50% | 17.60% |
Net Interest Income - Component
Net Interest Income - Components of Interest Revenue and Interest Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |||
Interest-bearing deposits with banks | $ 387 | $ 180 | $ 126 |
U.S. Treasury and federal agencies | 1,178 | 854 | 821 |
State and political subdivisions | 143 | 226 | 224 |
Other investments | 560 | 658 | 756 |
Securities purchased under resale agreements | 335 | 264 | 146 |
Loans and leases | 687 | 504 | 378 |
Other interest-earning assets | 372 | 222 | 61 |
Total interest income | 3,662 | 2,908 | 2,512 |
Interest-bearing deposits | 363 | 163 | 85 |
Securities sold under repurchase agreements | 13 | 2 | 1 |
Other short-term borrowings | 17 | 10 | 7 |
Long-term debt | 389 | 308 | 260 |
Other interest-bearing liabilities | 209 | 121 | 75 |
Total interest expense | 991 | 604 | 428 |
Net interest income | $ 2,671 | $ 2,304 | $ 2,084 |
Equity-Based Compensation - Nar
Equity-Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | 19 Months Ended | 108 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2018 | May 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares awarded, but not delivered, available for reissue (in shares) | 1,000,000 | 1,000,000 | 1,000,000 | |||
Shares available for grant (in shares) | 23,600,000 | 23,600,000 | 23,600,000 | |||
Options granted (in shares) | 0 | |||||
Allocated share-based compensation | $ 262,000,000 | $ 243,000,000 | $ 268,000,000 | |||
Accelerated recognition due to restructuring plan | $ 45,000,000 | $ 15,000,000 | $ 9,000,000 | |||
Stock Options and SARs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options outstanding (in shares) | 0 | 955,000 | ||||
Exercised (in shares) | 0 | 595,000 | ||||
Intrinsic value of exercises in period | $ 5,000,000 | $ 1,000,000 | ||||
Unrecognized share-based compensation expense for stock options | $ 0 | $ 0 | $ 0 | |||
Stock Options and SARs | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 4 years | |||||
Stock Options and SARs | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 10 years | |||||
Deferred Stock Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair value for vested in period | $ 230,000,000 | 232,000,000 | 275,000,000 | |||
Costs not yet recognized | $ 249,000,000 | 249,000,000 | 249,000,000 | |||
Period of recognition for unrecognized share-based compensation | 2 years 6 months | |||||
Deferred Stock Awards | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 1 year | |||||
Deferred Stock Awards | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 4 years | |||||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair value for vested in period | $ 32,000,000 | $ 14,000,000 | $ 21,000,000 | |||
Costs not yet recognized | $ 62,000,000 | $ 62,000,000 | $ 62,000,000 | |||
Period of recognition for unrecognized share-based compensation | 2 years 1 month 6 days | |||||
Performance Shares | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
2017 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized for issuance (in shares) | 8,300,000 | |||||
Additional shares authorized (in shares) | 18,900,000 | |||||
Shares issued during period (in shares) | 3,900,000 | 400,000 | ||||
2006 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized for issuance (in shares) | 28,500,000 | |||||
Shares issued during period (in shares) | 68,900,000 | 68,900,000 | 65,700,000 |
Equity-Based Compensation - Sto
Equity-Based Compensation - Stock Options and Stock Appreciation Rights (Details) - Stock Options and SARs - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | ||
Beginning of Period (in shares) | 0 | 955,000 |
Exercised (in shares) | 0 | (595,000) |
Forfeited or Expired (in shares) | (360,000) | |
End of Period (in shares) | 0 | |
Weighted-Average Exercise Price | ||
Beginning of Period (in USD per share) | $ 0 | $ 77.52 |
Exercised (in USD per share) | 81.71 | |
Forfeited or Expired (in USD per share) | 70.59 | |
End of Period (in USD per share) | $ 0 | |
Weighted average contractual term of options outstanding | 0 years | |
Total Intrinsic Value | $ 0 |
Equity-Based Compensation - Def
Equity-Based Compensation - Deferred Stock Awards (Details) - Deferred Stock Awards - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | ||
Beginning of Period (in shares) | 6,848 | 7,814 |
Granted (in shares) | 2,500 | 2,977 |
Vested (in shares) | (3,235) | (3,686) |
Forfeited (in shares) | (138) | (257) |
End of Period (in shares) | 5,975 | 6,848 |
Weighted-Average Grant Date Fair Value | ||
Beginning of Period (in USD per share) | $ 65.44 | $ 60.01 |
Granted (in USD per share) | 101.25 | 76.38 |
Vested (in USD per share) | 70.98 | 62.88 |
Forfeited (in USD per share) | 80.60 | 63.56 |
End of Period (in USD per share) | $ 77.07 | $ 65.44 |
Equity-Based Compensation - Per
Equity-Based Compensation - Performance Awards (Details) - Performance Shares - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | ||
Beginning of Period (in shares) | 1,548 | 1,247 |
Granted (in shares) | 1,067 | 534 |
Forfeited (in shares) | (1) | 0 |
Paid Out (in shares) | (457) | (233) |
End of Period (in shares) | 2,157 | 1,548 |
Weighted-Average Grant Date Fair Value | ||
Beginning of Period (in USD per share) | $ 66.09 | $ 60.37 |
Granted (in USD per share) | 74.68 | 76.27 |
Forfeited (in USD per share) | 101.26 | 0 |
Paid Out (in USD per share) | 70.58 | 58.91 |
End of Period (in USD per share) | $ 69.36 | $ 66.09 |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)employee | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit expense | $ 11 | $ 15 | $ 16 |
Contributions by employer | $ 170 | 146 | $ 132 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of eligible employees for pension plan (in employee) | employee | 0 | ||
Defined benefit obligation | $ 1,210 | 1,320 | |
Defined benefit underfunded status | 1 | 9 | |
Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit obligation | 12 | 16 | |
Defined benefit underfunded status | 12 | 16 | |
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit obligation | 110 | 125 | |
Defined benefit underfunded status | $ 110 | $ 125 |
Occupancy Expense and Informa_3
Occupancy Expense and Information Systems and Communications Expense - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)ft² | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Depreciation | $ 599 | $ 526 | $ 472 |
Capital lease obligation | 102 | 159 | |
Interest expense on capital lease | 17 | 20 | 22 |
Accumulated amortization on capital lease | 352 | 401 | |
Sublease rental expense | 185 | 229 | 194 |
Sublease revenue | 5 | $ 5 | $ 4 |
Future minimum sublease rental revenue on capital lease | 46 | ||
Future minimum sublease rental revenue on operating lease | $ 16 | ||
One Lincoln Street | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Leased area (in sqft) | ft² | 810,000 | ||
Noncancelable capital leases expiration | 20 years | ||
Sublease building (in sqft) | ft² | 219,000 |
Occupancy Expense and Informa_4
Occupancy Expense and Information Systems and Communications Expense - Summary of Future Minimum Lease Payments Under Non-Cancelable Capital and Operating Leases (Details) $ in Millions | Dec. 31, 2018USD ($) |
Capital Leases | |
Capital leases due 2019 | $ 34 |
Capital leases due 2020 | 31 |
Capital leases due 2021 | 31 |
Capital leases due 2022 | 31 |
Capital leases due 2023 | 24 |
Capital leases due thereafter | 0 |
Capital leases due | 151 |
Less amount representing interest payments | (31) |
Present value of minimum lease payments | 120 |
Operating Leases | |
Operating leases due 2019 | 192 |
Operating leases due 2020 | 181 |
Operating leases due 2021 | 170 |
Operating leases due 2022 | 147 |
Operating leases due 2023 | 128 |
Operating leases due thereafter | 380 |
Operating leases due | 1,198 |
Total operating and capital leases due 2019 | 226 |
Total operating and capital leases due 2020 | 212 |
Total operating and capital leases due 2021 | 201 |
Total operating and capital leases due 2022 | 178 |
Total operating and capital leases due 2023 | 152 |
Total operating and capital leases due thereafter | 380 |
Total operating and capital leases due | $ 1,349 |
Expenses - Schedule of Expenses
Expenses - Schedule of Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Expenses [Abstract] | |||
Professional services | $ 357 | $ 340 | $ 379 |
Sales advertising public relations | 115 | 67 | 52 |
Insurance | 97 | 118 | 93 |
Regulatory fees and assessments | 87 | 106 | 82 |
Bank operations | 70 | 80 | 62 |
Litigation | 7 | (15) | 50 |
Other | 443 | 233 | 245 |
Total other expenses | $ 1,176 | $ 929 | $ 963 |
Expenses - Narrative (Details)
Expenses - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 39 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2021 | |
Repositioning | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 300 | ||||
State Street Beacon | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | (7) | $ 245 | $ 142 | ||
Employee Related Costs | Repositioning | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 259 | ||||
Employee Related Costs | State Street Beacon | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | (7) | 186 | 94 | ||
Real Estate Actions | Repositioning | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 41 | ||||
Real Estate Actions | State Street Beacon | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 0 | 32 | $ 18 | ||
Charles River Development | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Acquisitions costs | $ 31 | ||||
Charles River Development | Forecast | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Acquisitions costs | $ 200 | ||||
GEAM Business | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Acquisitions costs | $ 21 |
Expenses - Restructuring Reserv
Expenses - Restructuring Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 201 | $ 56 | $ 23 |
Payments and Other Adjustments | (153) | (100) | (107) |
Ending balance | 341 | 201 | 56 |
Employee Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 166 | 37 | 9 |
Payments and Other Adjustments | (115) | (57) | (64) |
Ending balance | 303 | 166 | 37 |
Real Estate Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 32 | 17 | 11 |
Payments and Other Adjustments | (36) | (17) | (12) |
Ending balance | 37 | 32 | 17 |
Asset and Other Write-offs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 3 | 2 | 3 |
Payments and Other Adjustments | (2) | (26) | (31) |
Ending balance | 1 | 3 | 2 |
Business Operations and IT | |||
Restructuring Reserve [Roll Forward] | |||
Accruals | (2) | ||
Business Operations and IT | Employee Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Accruals | (2) | ||
Business Operations and IT | Real Estate Actions | |||
Restructuring Reserve [Roll Forward] | |||
Accruals | 0 | ||
Business Operations and IT | Asset and Other Write-offs | |||
Restructuring Reserve [Roll Forward] | |||
Accruals | 0 | ||
State Street Beacon | |||
Restructuring Reserve [Roll Forward] | |||
Accruals | (7) | 245 | 142 |
State Street Beacon | Employee Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Accruals | (7) | 186 | 94 |
State Street Beacon | Real Estate Actions | |||
Restructuring Reserve [Roll Forward] | |||
Accruals | 0 | 32 | 18 |
State Street Beacon | Asset and Other Write-offs | |||
Restructuring Reserve [Roll Forward] | |||
Accruals | 0 | $ 27 | $ 30 |
Repositioning | |||
Restructuring Reserve [Roll Forward] | |||
Accruals | 300 | ||
Repositioning | Employee Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Accruals | 259 | ||
Repositioning | Real Estate Actions | |||
Restructuring Reserve [Roll Forward] | |||
Accruals | 41 | ||
Repositioning | Asset and Other Write-offs | |||
Restructuring Reserve [Roll Forward] | |||
Accruals | $ 0 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 122 | $ 343 | $ 69 |
State | 148 | 24 | 34 |
Non-U.S. | 374 | 380 | 320 |
Total current expense | 644 | 747 | 423 |
Deferred: | |||
Federal | (128) | 45 | (309) |
State | (22) | 66 | 38 |
Non-U.S. | 14 | (19) | (85) |
Total deferred expense (benefit) | (136) | 92 | (356) |
Total income tax expense (benefit) | $ 508 | $ 839 | $ 67 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of the U.S. Statutory Income Tax Rate to the Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal income tax rate | 21.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 3.10% | 2.00% | 2.10% |
Tax-exempt income | (2.00%) | (4.30%) | (5.90%) |
Business tax credits | (4.10%) | (3.70%) | (10.50%) |
Foreign tax differential | (0.60%) | (7.20%) | (7.40%) |
Transition tax | 0.00% | 15.20% | 0.00% |
Deferred tax revaluation | (1.00%) | (6.80%) | 0.00% |
Foreign designated earnings | (0.00%) | (0.70%) | (6.50%) |
Foreign capital transactions | (0.00%) | (0.00%) | (4.10%) |
Litigation expense | 0.30% | 0.00% | 1.30% |
Other, net | (0.40%) | (1.60%) | (1.00%) |
Effective tax rate | 16.30% | 27.90% | 3.00% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
U.S. federal income tax rate | 21.00% | 35.00% | 35.00% | |
Deferred tax benefit due to revaluation of deferred tax assets | $ (197) | |||
Provisional transition tax expense | $ 32 | 454 | ||
GILTI, percent | 0.20% | |||
Undistributed indefinitely reinvested earnings of certain foreign subsidiaries | $ 3,800 | |||
Unrecognized tax benefits | 108 | 94 | $ 71 | $ 63 |
Unrecognized tax benefits that would impact effective tax rate | 100 | 87 | 63 | |
Maximum estimated income tax expense change in unrecognized tax benefit in the next 12 months | 25 | |||
Interest expense for tax examination | 1 | 3 | ||
Interest accrued for tax examination | $ 8 | $ 8 | $ 5 |
Income Taxes - Schedule of Co_2
Income Taxes - Schedule of Components of Deferred Tax Liabilities and Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Unrealized losses on investment securities, net | $ 146 | $ 17 |
Deferred compensation | 134 | 159 |
Pension plan | 55 | 82 |
Accrued expenses | 156 | 132 |
Foreign currency translation | 50 | 18 |
General business credit | 274 | 231 |
NOL and other carryforwards | 153 | 101 |
Other | 0 | 27 |
Total deferred tax assets | 968 | 767 |
Valuation allowance for deferred tax assets | (138) | (88) |
Deferred tax assets, net of valuation allowance | 830 | 679 |
Deferred tax liabilities: | ||
Leveraged lease financing | 0 | 184 |
Fixed and intangible assets | 744 | 755 |
Non-U.S. earnings | 0 | 6 |
Investment basis differences | 229 | 172 |
Other | 11 | 0 |
Total deferred tax liabilities | $ 984 | $ 1,117 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Asset Valuation Allowances (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Valuation Allowance [Line Items] | ||
Valuation Allowance | $ (138) | $ (88) |
General business Credits | ||
Valuation Allowance [Line Items] | ||
General business Credits | 274 | |
Valuation Allowance | 0 | |
NOLs - Non-U.S. | ||
Valuation Allowance [Line Items] | ||
NOLs - Non-U.S. | 55 | |
Valuation Allowance | (41) | |
Other Carryforwards | ||
Valuation Allowance [Line Items] | ||
Other Carryforwards | 88 | |
Valuation Allowance | (88) | |
NOLs - State | ||
Valuation Allowance [Line Items] | ||
NOLs - State | 11 | |
Valuation Allowance | $ (9) |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 94 | $ 71 | $ 63 |
Decrease related to agreements with tax authorities | (40) | (14) | (13) |
Increase related to tax positions taken during current year | 12 | 26 | 7 |
Increase related to tax positions taken during prior years | 44 | 11 | 14 |
Decreases related to a lapse of the applicable statute of limitations | (2) | 0 | 0 |
Ending balance | $ 108 | $ 94 | $ 71 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Net income | $ 2,593 | $ 2,156 | $ 2,138 |
Preferred stock dividends | (188) | (182) | (173) |
Dividends and undistributed earnings allocated to participating securities | (1) | (2) | (2) |
Net income available to common shareholders | $ 2,404 | $ 1,972 | $ 1,963 |
Basic average common shares | 371,983 | 374,793 | 391,485 |
Effect of dilutive securities: common stock options and common stock awards (in shares) | 4,493 | 5,420 | 4,605 |
Diluted average common shares | 376,476 | 380,213 | 396,090 |
Anti-dilutive securities (in shares) | 1,011 | 188 | 2,143 |
Earnings per Common Share: | |||
Basic (in USD per share) | $ 6.46 | $ 5.26 | $ 5.01 |
Diluted (in USD per share) | $ 6.39 | $ 5.19 | $ 4.96 |
Line of Business Information -
Line of Business Information - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of lines of business | segment | 2 | ||
Net costs | $ 3,101 | $ 2,995 | $ 2,204 |
Acquisition and restructuring costs | 24 | 266 | 209 |
Other | |||
Segment Reporting Information [Line Items] | |||
Net costs | (398) | (266) | (199) |
Repositioning charges | 300 | ||
Business exit costs | 24 | ||
Legal and related expenses | 50 | ||
Acquisition and restructuring costs | $ 24 | $ 266 | 209 |
Severance costs | $ (10) | ||
Investment Servicing and Management Services | Investment Servicing and Investment Management | Minimum | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues by segment | 75.00% | ||
Investment Servicing and Management Services | Investment Servicing and Investment Management | Maximum | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues by segment | 80.00% | ||
Processing and Other Services | Investment Servicing and Investment Management | Minimum | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues by segment | 20.00% | ||
Processing and Other Services | Investment Servicing and Investment Management | Maximum | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues by segment | 25.00% |
Line of Business Information _2
Line of Business Information - Summary of Line of Business (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Servicing fees | $ 5,421 | $ 5,365 | $ 5,073 |
Management fees | 1,851 | 1,616 | 1,292 |
Foreign exchange trading services | 1,201 | 1,071 | 1,099 |
Securities finance | 543 | 606 | 562 |
Processing fees and other | 438 | 343 | 174 |
Total fee revenue | 9,454 | 9,001 | 8,200 |
Net interest income | 2,671 | 2,304 | 2,084 |
Gains (losses) related to investment securities, net | 6 | (39) | 7 |
Total revenue | 12,131 | 11,266 | 10,291 |
Provision for loan losses | 15 | 2 | 10 |
Total expenses | 9,015 | 8,269 | 8,077 |
Income before income taxes | $ 3,101 | $ 2,995 | $ 2,204 |
Pre-tax margin | 26.00% | 27.00% | 21.00% |
Average assets (in billions) | $ 223,400 | $ 219,400 | $ 229,700 |
Operating Segments | Investment Servicing | |||
Segment Reporting Information [Line Items] | |||
Servicing fees | 5,429 | 5,365 | 5,073 |
Management fees | 0 | 0 | 0 |
Foreign exchange trading services | 1,071 | 999 | 1,038 |
Securities finance | 543 | 606 | 562 |
Processing fees and other | 443 | 336 | 203 |
Total fee revenue | 7,486 | 7,306 | 6,876 |
Net interest income | 2,691 | 2,309 | 2,081 |
Gains (losses) related to investment securities, net | 6 | (39) | 7 |
Total revenue | 10,183 | 9,576 | 8,964 |
Provision for loan losses | 15 | 2 | 10 |
Total expenses | 7,081 | 6,717 | 6,660 |
Income before income taxes | $ 3,087 | $ 2,857 | $ 2,294 |
Pre-tax margin | 30.00% | 30.00% | 26.00% |
Average assets (in billions) | $ 220,200 | $ 214,000 | $ 225,300 |
Operating Segments | Investment Management | |||
Segment Reporting Information [Line Items] | |||
Servicing fees | 0 | 0 | 0 |
Management fees | 1,851 | 1,616 | 1,292 |
Foreign exchange trading services | 130 | 72 | 61 |
Securities finance | 0 | 0 | 0 |
Processing fees and other | (5) | 7 | (29) |
Total fee revenue | 1,976 | 1,695 | 1,324 |
Net interest income | (20) | (5) | 3 |
Gains (losses) related to investment securities, net | 0 | 0 | 0 |
Total revenue | 1,956 | 1,690 | 1,327 |
Provision for loan losses | 0 | 0 | 0 |
Total expenses | 1,544 | 1,286 | 1,218 |
Income before income taxes | $ 412 | $ 404 | $ 109 |
Pre-tax margin | 21.00% | 24.00% | 8.00% |
Average assets (in billions) | $ 3,200 | $ 5,400 | $ 4,400 |
Other | |||
Segment Reporting Information [Line Items] | |||
Servicing fees | (8) | 0 | 0 |
Management fees | 0 | 0 | 0 |
Foreign exchange trading services | 0 | 0 | 0 |
Securities finance | 0 | 0 | 0 |
Processing fees and other | 0 | 0 | 0 |
Total fee revenue | (8) | 0 | 0 |
Net interest income | 0 | 0 | 0 |
Gains (losses) related to investment securities, net | 0 | 0 | 0 |
Total revenue | (8) | 0 | 0 |
Provision for loan losses | 0 | 0 | 0 |
Total expenses | 390 | 266 | 199 |
Income before income taxes | (398) | $ (266) | $ (199) |
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
Segment Reporting Information [Line Items] | |||
Management fees | 190 | ||
Foreign exchange trading services | 58 | ||
Total revenue | 319 | ||
Total expenses | 272 | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Operating Segments | Investment Management | |||
Segment Reporting Information [Line Items] | |||
Management fees | 190 | ||
Foreign exchange trading services | 58 | ||
Total revenue | 248 | ||
Total expenses | $ 248 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Servicing fees | $ 5,421 | $ 5,365 | $ 5,073 |
Management fees | 1,851 | 1,616 | 1,292 |
Foreign exchange trading services | 1,201 | 1,071 | 1,099 |
Securities finance | 543 | 606 | 562 |
Processing fees and other | 438 | 343 | 174 |
Total fee revenue | 9,454 | 9,001 | 8,200 |
Net interest income | 2,671 | 2,304 | 2,084 |
Gains (losses) related to investment securities, net | 6 | (39) | 7 |
Total revenue | 12,131 | 11,266 | 10,291 |
Servicing fees | |||
Disaggregation of Revenue [Line Items] | |||
Servicing fees | 5,421 | ||
Management fees | |||
Disaggregation of Revenue [Line Items] | |||
Management fees | 1,851 | ||
Foreign exchange trading services | |||
Disaggregation of Revenue [Line Items] | |||
Foreign exchange trading services | 1,201 | ||
Securities finance | |||
Disaggregation of Revenue [Line Items] | |||
Securities finance | 543 | ||
Processing fees and other | |||
Disaggregation of Revenue [Line Items] | |||
Processing fees and other | 438 | ||
Total fee revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total fee revenue | 9,454 | ||
Net interest income | |||
Disaggregation of Revenue [Line Items] | |||
Net interest income | 2,671 | ||
Gains (losses) related to investment securities, net | |||
Disaggregation of Revenue [Line Items] | |||
Gains (losses) related to investment securities, net | 6 | ||
Operating Segments | Investment Servicing | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 6,307 | ||
All other revenue | 3,876 | ||
Servicing fees | 5,429 | 5,365 | 5,073 |
Management fees | 0 | 0 | 0 |
Foreign exchange trading services | 1,071 | 999 | 1,038 |
Securities finance | 543 | 606 | 562 |
Processing fees and other | 443 | 336 | 203 |
Total fee revenue | 7,486 | 7,306 | 6,876 |
Net interest income | 2,691 | 2,309 | 2,081 |
Gains (losses) related to investment securities, net | 6 | (39) | 7 |
Total revenue | 10,183 | 9,576 | 8,964 |
Operating Segments | Investment Servicing | Servicing fees | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 5,429 | ||
All other revenue | 0 | ||
Servicing fees | 5,429 | ||
Operating Segments | Investment Servicing | Management fees | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | ||
All other revenue | 0 | ||
Management fees | 0 | ||
Operating Segments | Investment Servicing | Foreign exchange trading services | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 361 | ||
All other revenue | 710 | ||
Foreign exchange trading services | 1,071 | ||
Operating Segments | Investment Servicing | Securities finance | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 308 | ||
All other revenue | 235 | ||
Securities finance | 543 | ||
Operating Segments | Investment Servicing | Processing fees and other | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 209 | ||
All other revenue | 234 | ||
Processing fees and other | 443 | ||
Operating Segments | Investment Servicing | Total fee revenue | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 6,307 | ||
All other revenue | 1,179 | ||
Total fee revenue | 7,486 | ||
Operating Segments | Investment Servicing | Net interest income | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | ||
All other revenue | 2,691 | ||
Net interest income | 2,691 | ||
Operating Segments | Investment Servicing | Gains (losses) related to investment securities, net | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | ||
All other revenue | 6 | ||
Gains (losses) related to investment securities, net | 6 | ||
Operating Segments | Investment Management | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 1,981 | ||
All other revenue | (25) | ||
Servicing fees | 0 | 0 | 0 |
Management fees | 1,851 | 1,616 | 1,292 |
Foreign exchange trading services | 130 | 72 | 61 |
Securities finance | 0 | 0 | 0 |
Processing fees and other | (5) | 7 | (29) |
Total fee revenue | 1,976 | 1,695 | 1,324 |
Net interest income | (20) | (5) | 3 |
Gains (losses) related to investment securities, net | 0 | 0 | 0 |
Total revenue | 1,956 | 1,690 | 1,327 |
Operating Segments | Investment Management | Servicing fees | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | ||
All other revenue | 0 | ||
Servicing fees | 0 | ||
Operating Segments | Investment Management | Management fees | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 1,851 | ||
All other revenue | 0 | ||
Management fees | 1,851 | ||
Operating Segments | Investment Management | Foreign exchange trading services | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 130 | ||
All other revenue | 0 | ||
Foreign exchange trading services | 130 | ||
Operating Segments | Investment Management | Securities finance | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | ||
All other revenue | 0 | ||
Securities finance | 0 | ||
Operating Segments | Investment Management | Processing fees and other | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | ||
All other revenue | (5) | ||
Processing fees and other | (5) | ||
Operating Segments | Investment Management | Total fee revenue | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 1,981 | ||
All other revenue | (5) | ||
Total fee revenue | 1,976 | ||
Operating Segments | Investment Management | Net interest income | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | ||
All other revenue | (20) | ||
Net interest income | (20) | ||
Operating Segments | Investment Management | Gains (losses) related to investment securities, net | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | ||
All other revenue | 0 | ||
Gains (losses) related to investment securities, net | 0 | ||
Other | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | (8) | ||
All other revenue | 0 | ||
Servicing fees | (8) | 0 | 0 |
Management fees | 0 | 0 | 0 |
Foreign exchange trading services | 0 | 0 | 0 |
Securities finance | 0 | 0 | 0 |
Processing fees and other | 0 | 0 | 0 |
Total fee revenue | (8) | 0 | 0 |
Net interest income | 0 | 0 | 0 |
Gains (losses) related to investment securities, net | 0 | 0 | 0 |
Total revenue | (8) | $ 0 | $ 0 |
Other | Servicing fees | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | (8) | ||
All other revenue | 0 | ||
Servicing fees | (8) | ||
Other | Management fees | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | ||
All other revenue | 0 | ||
Management fees | 0 | ||
Other | Foreign exchange trading services | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | ||
All other revenue | 0 | ||
Foreign exchange trading services | 0 | ||
Other | Securities finance | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | ||
All other revenue | 0 | ||
Securities finance | 0 | ||
Other | Processing fees and other | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | ||
All other revenue | 0 | ||
Processing fees and other | 0 | ||
Other | Total fee revenue | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | (8) | ||
All other revenue | 0 | ||
Total fee revenue | (8) | ||
Other | Net interest income | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | ||
All other revenue | 0 | ||
Net interest income | 0 | ||
Other | Gains (losses) related to investment securities, net | |||
Disaggregation of Revenue [Line Items] | |||
Topic 606 revenue | 0 | ||
All other revenue | 0 | ||
Gains (losses) related to investment securities, net | $ 0 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Interest and Fees Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables related to contracts with customers | $ 2.7 | $ 2.6 |
Non-U.S. Activities - Schedule
Non-U.S. Activities - Schedule Of Results From Non-U.S. Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 12,131 | $ 11,266 | $ 10,291 |
Income before income taxes | 3,101 | 2,995 | 2,204 |
Non-U.S. | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 5,178 | 4,734 | 4,419 |
Income before income taxes | 1,664 | 1,230 | 1,047 |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 6,953 | 6,532 | 5,872 |
Income before income taxes | $ 1,437 | $ 1,765 | $ 1,157 |
Non-U.S. Activities - Narrative
Non-U.S. Activities - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Assets | $ 244,596 | $ 238,392 |
Non-U.S. | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 81,700 | $ 82,100 |
Parent Company Financial Stat_3
Parent Company Financial Statements - Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Total revenue | $ 12,131 | $ 11,266 | $ 10,291 |
Other | 1,176 | 929 | 963 |
Total expenses | 9,015 | 8,269 | 8,077 |
Income tax expense (benefit) | 508 | 839 | 67 |
Net income | 2,593 | 2,156 | 2,138 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash dividends from consolidated banking subsidiary | 785 | 2,224 | 640 |
Cash dividends from consolidated non-banking subsidiaries and unconsolidated entities | 41 | 12 | 75 |
Other, net | 58 | 127 | 92 |
Total revenue | 884 | 2,363 | 807 |
Interest expense | 381 | 297 | 249 |
Other | 162 | 94 | 107 |
Total expenses | 543 | 391 | 356 |
Income tax expense (benefit) | (127) | (86) | (47) |
Income before equity in undistributed income of consolidated subsidiaries and unconsolidated entities | 468 | 2,058 | 498 |
Consolidated banking subsidiary | 1,944 | (1) | 1,624 |
Consolidated non-banking subsidiaries and unconsolidated entities | 181 | 99 | 16 |
Net income | $ 2,593 | $ 2,156 | $ 2,138 |
Parent Company Financial Stat_4
Parent Company Financial Statements - Statement of Condition (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||||
Interest-bearing deposits with banks | $ 73,040 | $ 67,227 | ||
Trading account assets | 860 | 1,093 | ||
Investment securities available-for-sale | 45,148 | 57,121 | ||
Other assets | 34,404 | 30,985 | ||
Total assets | 244,596 | 238,392 | ||
Liabilities: | ||||
Total liabilities | 219,859 | 216,122 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Shareholders’ equity | 24,737 | 22,270 | $ 21,193 | $ 21,082 |
Total liabilities and shareholders' equity | 244,596 | 238,392 | ||
Parent Company | ||||
Assets: | ||||
Interest-bearing deposits with banks | 486 | 532 | ||
Trading account assets | 357 | 361 | ||
Investment securities available-for-sale | 224 | 43 | ||
Consolidated banking subsidiary | 25,966 | 23,033 | ||
Consolidated non-banking subsidiaries | 6,726 | 6,762 | ||
Unconsolidated entities | 106 | 63 | ||
Consolidated banking subsidiary | 64 | 273 | ||
Consolidated non-banking subsidiaries and unconsolidated entities | 2,337 | 2,843 | ||
Other assets | 96 | 263 | ||
Total assets | 36,362 | 34,173 | ||
Liabilities: | ||||
Accrued expenses and other liabilities | 685 | 917 | ||
Long-term debt | 10,940 | 10,986 | ||
Total liabilities | 11,625 | 11,903 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Shareholders’ equity | 24,737 | 22,270 | ||
Total liabilities and shareholders' equity | $ 36,362 | $ 34,173 |
Parent Company Financial Stat_5
Parent Company Financial Statements - Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities: | |||
Net cash provided by operating activities | $ 10,457 | $ 6,933 | $ 2,290 |
Investing Activities: | |||
Net decrease (increase) in interest-bearing deposits with consolidated banking subsidiary | (5,813) | 3,708 | 4,403 |
Proceeds from sales and maturities of available-for-sale securities | 14,645 | 28,878 | 30,070 |
Purchases of available-for-sale securities | (31,814) | (34,841) | (30,162) |
Business acquisitions | (2,595) | 0 | (437) |
Net cash (used in) provided by investing activities | (4,496) | 48 | 4,230 |
Financing Activities: | |||
Proceeds from issuance of long-term debt, net of issuance costs | 995 | 747 | 1,492 |
Payments for long-term debt | (1,461) | (493) | (1,441) |
Proceeds from issuance of preferred stock, net of issuance costs | 495 | 0 | 493 |
Proceeds from issuance of common stock, net of issuance costs | 1,150 | 0 | 0 |
Repurchases of common stock | (350) | (1,292) | (1,365) |
Repurchases of common stock for employee tax withholding | (124) | (126) | (122) |
Payments for cash dividends | (828) | (768) | (723) |
Other, net | 0 | 9 | (28) |
Net cash (used in) financing activities | (4,471) | (6,188) | (6,413) |
Net change | 1,490 | 793 | 107 |
Cash and due from banks at beginning of period | 2,107 | 1,314 | 1,207 |
Cash and due from banks at end of period | 3,597 | 2,107 | 1,314 |
Parent Company | |||
Operating Activities: | |||
Net cash provided by operating activities | 2,250 | 2,047 | 417 |
Investing Activities: | |||
Net decrease (increase) in interest-bearing deposits with consolidated banking subsidiary | 46 | 3,103 | 2,100 |
Purchases of available-for-sale securities | (224) | 0 | 0 |
Investments in consolidated banking and non-banking subsidiaries | (4,883) | (7,672) | (7,600) |
Sale or repayment of investment in consolidated banking and non-banking subsidiaries | 2,472 | 4,216 | 6,703 |
Business acquisitions | 0 | 0 | (395) |
Net increase in investments in unconsolidated affiliates | 0 | 172 | 0 |
Net cash (used in) provided by investing activities | (2,589) | (181) | 808 |
Financing Activities: | |||
Proceeds from issuance of long-term debt, net of issuance costs | 996 | 748 | 1,492 |
Payments for long-term debt | (1,000) | (450) | (1,000) |
Proceeds from issuance of preferred stock, net of issuance costs | 495 | 0 | 493 |
Proceeds from issuance of common stock, net of issuance costs | 1,150 | 0 | 0 |
Repurchases of common stock | (350) | (1,292) | (1,365) |
Repurchases of common stock for employee tax withholding | (124) | (104) | (122) |
Payments for cash dividends | (828) | (768) | (723) |
Net cash (used in) financing activities | 339 | (1,866) | (1,225) |
Net change | 0 | 0 | 0 |
Cash and due from banks at beginning of period | 0 | 0 | 0 |
Cash and due from banks at end of period | $ 0 | $ 0 | $ 0 |