Delaware | 1585 Broadway | 36-3145972 | (212) | 761-4000 | |||||||||||||||||||
(State or other jurisdiction of incorporation or organization) | New York, | NY | 10036 | (I.R.S. Employer Identification No.) | (Registrant’s telephone number, including area code) | ||||||||||||||||||
(Address of principal executive offices, including zip code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||
Common Stock, $0.01 par value | MS | New York Stock Exchange | ||||||
Depositary Shares, each representing 1/1,000th interest in a share of Floating Rate | MS/PA | New York Stock Exchange | ||||||
Non-Cumulative Preferred Stock, Series A, $0.01 par value | ||||||||
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate | MS/PE | New York Stock Exchange | ||||||
Non-Cumulative Preferred Stock, Series E, $0.01 par value | ||||||||
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate | MS/PF | New York Stock Exchange | ||||||
Non-Cumulative Preferred Stock, Series F, $0.01 par value | ||||||||
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate | MS/PI | New York Stock Exchange | ||||||
Non-Cumulative Preferred Stock, Series I, $0.01 par value | ||||||||
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate | MS/PK | New York Stock Exchange | ||||||
Non-Cumulative Preferred Stock, Series K, $0.01 par value | ||||||||
Depositary Shares, each representing 1/ | MS/PL | New York Stock Exchange | ||||||
Non-Cumulative Preferred Stock, Series L, $0.01 par value | ||||||||
Depositary Shares, each representing 1/ | MS/PO | New York Stock Exchange | ||||||
Non-Cumulative Preferred Stock, Series O, $0.01 par value | ||||||||
Depositary Shares, each representing 1/1,000th interest in a share of 6.500% | MS/PP | New York Stock Exchange | ||||||
Non-Cumulative Preferred Stock, Series | ||||||||
Global Medium-Term Notes, Series A, Fixed Rate Step-Up Senior Notes Due 2026 | MS/26C | New York Stock Exchange | ||||||
of Morgan Stanley Finance LLC (and Registrant’s guarantee with respect thereto) | ||||||||
Global Medium-Term Notes, Series A, Floating Rate Notes Due 2029 | MS/29 | New York Stock Exchange | ||||||
of Morgan Stanley Finance LLC (and Registrant’s guarantee with respect thereto) |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
Table of Contents | Table of Contents | Part | Item | Page | Table of Contents | Part | Item | Page | ||||||||||||||||||||
I | I | |||||||||||||||||||||||||||
I | 2 | I | 2 | |||||||||||||||||||||||||
I | 3 | I | 3 | |||||||||||||||||||||||||
I | 1 | I | 1 | |||||||||||||||||||||||||
I | 4 | I | 4 | |||||||||||||||||||||||||
II | II | |||||||||||||||||||||||||||
II | 1 | II | 1 | |||||||||||||||||||||||||
II | 1A | II | 1A | |||||||||||||||||||||||||
II | 2 | II | 2 | |||||||||||||||||||||||||
II | 5 | II | 5 | |||||||||||||||||||||||||
II | 6 | II | 6 | |||||||||||||||||||||||||
i |
ii |
September | 1 |
Management’s Discussion and Analysis |
2 | September |
Management’s Discussion and Analysis |
September | 3 |
Management’s Discussion and Analysis |
4 | September |
Management’s Discussion and Analysis |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Consolidated results | ||||||||||||||
Net revenues1 | $ | 14,753 | $ | 11,721 | $ | 45,231 | $ | 35,160 | ||||||
Earnings applicable to Morgan Stanley common shareholders | $ | 3,584 | $ | 2,597 | $ | 10,974 | $ | 7,234 | ||||||
Earnings per diluted common share | $ | 1.98 | $ | 1.66 | $ | 6.02 | $ | 4.62 | ||||||
Consolidated financial measures | ||||||||||||||
Expense efficiency ratio1, 2 | 67 | % | 69 | % | 67 | % | 69 | % | ||||||
Adjusted expense efficiency ratio1, 2 ,4 | 66 | % | 69 | % | 67 | % | 69 | % | ||||||
ROE3 | 14.5 | % | 13.2 | % | 15.1 | % | 12.6 | % | ||||||
Adjusted ROE3, 4 | 15.0 | % | 13.2 | % | 15.4 | % | 12.6 | % | ||||||
ROTCE3, 4 | 19.6 | % | 15.0 | % | 19.7 | % | 14.3 | % | ||||||
Adjusted ROTCE3, 4 | 20.2 | % | 15.0 | % | 20.2 | % | 14.3 | % | ||||||
Pre-tax margin1, 5 | 33 | % | 30 | % | 33 | % | 28 | % | ||||||
Effective tax rate | 23.6 | % | 21.1 | % | 22.9 | % | 22.2 | % | ||||||
Pre-tax margin by segment5 | ||||||||||||||
Institutional Securities1 | 40 | % | 33 | % | 38 | % | 31 | % | ||||||
Wealth Management1 | 26 | % | 24 | % | 26 | % | 25 | % | ||||||
Wealth Management, adjusted1, 4 | 28 | % | 24 | % | 28 | % | 25 | % | ||||||
Investment Management | 25 | % | 30 | % | 26 | % | 26 | % | ||||||
Investment Management, adjusted4 | 28 | % | 30 | % | 28 | % | 26 | % |
September | 5 |
Management’s Discussion and Analysis |
in millions, except per share and employee data | At September 30, 2021 | At December 31, 2020 | ||||||
Liquidity resources6 | $ | 346,289 | $ | 338,623 | ||||
Loans7 | $ | 188,274 | $ | 161,745 | ||||
Total assets | $ | 1,190,476 | $ | 1,115,862 | ||||
Deposits | $ | 329,041 | $ | 310,782 | ||||
Borrowings | $ | 229,762 | $ | 217,079 | ||||
Common shareholders' equity | $ | 98,153 | $ | 92,531 | ||||
Tangible common shareholders’ equity4 | $ | 72,808 | $ | 75,916 | ||||
Common shares outstanding | 1,799 | 1,810 | ||||||
Book value per common share8 | $ | 54.56 | $ | 51.13 | ||||
Tangible book value per common share4, 8 | $ | 40.47 | $ | 41.95 | ||||
Worldwide employees9 (in thousands) | 74 | 68 | ||||||
Capital Ratios10 | ||||||||
Common Equity Tier 1 capital—Standardized | 16.0 | % | 17.4 | % | ||||
Tier 1 capital—Standardized | 17.6 | % | 19.4 | % | ||||
Common Equity Tier 1 capital—Advanced | 17.2 | % | 17.7 | % | ||||
Tier 1 capital—Advanced | 18.9 | % | 19.8 | % | ||||
Tier 1 leverage | 7.3 | % | 8.4 | % | ||||
SLR11 | 5.7 | % | 7.4 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Consolidated results | ||||||||||||||
Net revenues | $ | 12,986 | $ | 14,753 | $ | 40,919 | $ | 45,231 | ||||||
Earnings applicable to Morgan Stanley common shareholders | $ | 2,494 | $ | 3,584 | $ | 8,427 | $ | 10,974 | ||||||
Earnings per diluted common share | $ | 1.47 | $ | 1.98 | $ | 4.88 | $ | 6.02 | ||||||
Consolidated financial measures | ||||||||||||||
Expense efficiency ratio1 | 74 | % | 67 | % | 72 | % | 67 | % | ||||||
Adjusted expense efficiency ratio1, 2 | 73 | % | 66 | % | 71 | % | 67 | % | ||||||
ROE3 | 10.7 | % | 14.5 | % | 11.9 | % | 15.1 | % | ||||||
Adjusted ROE2, 3 | 11.1 | % | 15.0 | % | 12.2 | % | 15.4 | % | ||||||
ROTCE2, 3 | 14.6 | % | 19.6 | % | 16.1 | % | 19.7 | % | ||||||
Adjusted ROTCE2, 3 | 15.2 | % | 20.2 | % | 16.6 | % | 20.2 | % | ||||||
Pre-tax margin4 | 26 | % | 33 | % | 28 | % | 33 | % | ||||||
Effective tax rate | 21.4 | % | 23.6 | % | 21.1 | % | 22.9 | % | ||||||
Average liquidity resources5 | $ | 308,001 | $ | 358,310 | N/M | N/M | ||||||||
Pre-tax margin by segment4 | ||||||||||||||
Institutional Securities | 28 | % | 40 | % | 30 | % | 38 | % | ||||||
Wealth Management | 27 | % | 26 | % | 27 | % | 26 | % | ||||||
Wealth Management, adjusted2 | 28 | % | 28 | % | 28 | % | 28 | % | ||||||
Investment Management | 10 | % | 25 | % | 15 | % | 26 | % | ||||||
Investment Management, adjusted2 | 13 | % | 28 | % | 17 | % | 28 | % |
in millions, except per share and employee data | At September 30, 2022 | At December 31, 2021 | ||||||
Loans6 | $ | 218,448 | $ | 200,761 | ||||
Total assets | $ | 1,160,029 | $ | 1,188,140 | ||||
Deposits | $ | 338,123 | $ | 347,574 | ||||
Borrowings | $ | 220,423 | $ | 233,127 | ||||
Common shareholders' equity | $ | 92,261 | $ | 97,691 | ||||
Tangible common shareholders’ equity2 | $ | 67,648 | $ | 72,499 | ||||
Common shares outstanding | 1,694 | 1,772 | ||||||
Book value per common share7 | $ | 54.46 | $ | 55.12 | ||||
Tangible book value per common share2, 7 | $ | 39.93 | $ | 40.91 | ||||
Worldwide employees (in thousands) | 82 | 75 | ||||||
Client assets8 (in billions) | $ | 5,413 | $ | 6,554 | ||||
Capital Ratios9 | ||||||||
Common Equity Tier 1 capital—Standardized | 14.8 | % | 16.0 | % | ||||
Tier 1 capital—Standardized | 16.7 | % | 17.7 | % | ||||
Common Equity Tier 1 capital—Advanced | 15.2 | % | 17.4 | % | ||||
Tier 1 capital—Advanced | 17.1 | % | 19.1 | % | ||||
Tier 1 leverage | 6.6 | % | 7.1 | % | ||||
SLR | 5.4 | % | 5.6 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions, except per share data | 2021 | 2020 | 2021 | 2020 | ||||||||||
Earnings applicable to Morgan Stanley common shareholders | $ | 3,584 | $ | 2,597 | $ | 10,974 | $ | 7,234 | ||||||
Impact of adjustments: | ||||||||||||||
Integration-related expenses | 145 | — | 310 | — | ||||||||||
Related tax benefit | (34) | — | (72) | — | ||||||||||
Adjusted earnings applicable to Morgan Stanley common shareholders—non-GAAP1 | $ | 3,695 | $ | 2,597 | $ | 11,212 | $ | 7,234 | ||||||
Earnings per diluted common share | $ | 1.98 | $ | 1.66 | $ | 6.02 | $ | 4.62 | ||||||
Impact of adjustments | 0.06 | — | 0.13 | — | ||||||||||
Adjusted earnings per diluted common share—non-GAAP1 | $ | 2.04 | $ | 1.66 | $ | 6.15 | $ | 4.62 | ||||||
Expense efficiency ratio2 | 67 | % | 69 | % | 67 | % | 69 | % | ||||||
Impact of adjustments | (1) | % | — | % | — | % | — | % | ||||||
Adjusted expense efficiency ratio—non-GAAP1, 2 | 66 | % | 69 | % | 67 | % | 69 | % | ||||||
Wealth Management Pre-tax margin2 | 26 | % | 24 | % | 26 | % | 25 | % | ||||||
Impact of adjustments | 2 | % | — | % | 2 | % | — | % | ||||||
Adjusted Wealth Management pre-tax margin—non-GAAP1, 2 | 28 | % | 24 | % | 28 | % | 25 | % | ||||||
Investment Management Pre-tax margin | 25 | % | 30 | % | 26 | % | 26 | % | ||||||
Impact of adjustments | 3 | % | — | % | 2 | % | — | % | ||||||
Adjusted Investment Management pre-tax margin—non-GAAP1 | 28 | % | 30 | % | 28 | % | 26 | % |
6 | September |
Management’s Discussion and Analysis |
$ in millions | At September 30, 2021 | At December 31, 2020 | ||||||
Tangible equity | ||||||||
Common shareholders' equity | $ | 98,153 | $ | 92,531 | ||||
Less: Goodwill and net intangible assets | (25,345) | (16,615) | ||||||
Tangible common shareholders' equity—non-GAAP | $ | 72,808 | $ | 75,916 |
Average Monthly Balance | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Tangible equity | ||||||||||||||
Common shareholders' equity | $ | 98,563 | $ | 78,690 | $ | 96,929 | $ | 76,858 | ||||||
Less: Goodwill and net intangible assets | (25,433) | (9,260) | (22,836) | (9,248) | ||||||||||
Tangible common shareholders' equity—non-GAAP | $ | 73,130 | $ | 69,430 | $ | 74,093 | $ | 67,610 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions, except per share data | 2022 | 2021 | 2022 | 2021 | ||||||||||
Earnings applicable to Morgan Stanley common shareholders | $ | 2,494 | $ | 3,584 | $ | 8,427 | $ | 10,974 | ||||||
Impact of adjustments: | ||||||||||||||
Wealth Management—Compensation expenses | 3 | 9 | 8 | 48 | ||||||||||
Wealth Management—Non-compensation expenses | 89 | 104 | 255 | 189 | ||||||||||
Investment Management—Compensation expenses | 7 | 10 | 23 | 29 | ||||||||||
Investment Management—Non-compensation expenses | 24 | 22 | 64 | 44 | ||||||||||
Integration-related expenses | 123 | 145 | 350 | 310 | ||||||||||
Related tax benefit | (29) | (34) | (82) | (72) | ||||||||||
Adjusted earnings applicable to Morgan Stanley common shareholders—non-GAAP1 | $ | 2,588 | $ | 3,695 | $ | 8,695 | $ | 11,212 | ||||||
Earnings per diluted common share | $ | 1.47 | $ | 1.98 | $ | 4.88 | $ | 6.02 | ||||||
Impact of adjustments | 0.06 | 0.06 | 0.16 | 0.13 | ||||||||||
Adjusted earnings per diluted common share—non-GAAP1 | $ | 1.53 | $ | 2.04 | $ | 5.04 | $ | 6.15 | ||||||
Expense efficiency ratio | 74 | % | 67 | % | 72 | % | 67 | % | ||||||
Impact of adjustments | (1) | % | (1) | % | (1) | % | — | % | ||||||
Adjusted expense efficiency ratio—non-GAAP1 | 73 | % | 66 | % | 71 | % | 67 | % | ||||||
Wealth Management Pre-tax margin | 27 | % | 26 | % | 27 | % | 26 | % | ||||||
Impact of adjustments | 1 | % | 2 | % | 1 | % | 2 | % | ||||||
Adjusted Wealth Management pre-tax margin—non-GAAP1 | 28 | % | 28 | % | 28 | % | 28 | % | ||||||
Investment Management Pre-tax margin | 10 | % | 25 | % | 15 | % | 26 | % | ||||||
Impact of adjustments | 3 | % | 3 | % | 2 | % | 2 | % | ||||||
Adjusted Investment Management pre-tax margin—non-GAAP1 | 13 | % | 28 | % | 17 | % | 28 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in billions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Average common equity | ||||||||||||||
Unadjusted—GAAP | $ | 98.6 | $ | 78.7 | $ | 96.9 | $ | 76.9 | ||||||
Adjusted1—Non-GAAP | 98.6 | 78.7 | 97.0 | 76.9 | ||||||||||
ROE3 | ||||||||||||||
Unadjusted—GAAP | 14.5 | % | 13.2 | % | 15.1 | % | 12.6 | % | ||||||
Adjusted1—Non-GAAP | 15.0 | % | 13.2 | % | 15.4 | % | 12.6 | % | ||||||
Average tangible common equity—Non-GAAP | ||||||||||||||
Unadjusted | $ | 73.1 | $ | 69.4 | $ | 74.1 | $ | 67.6 | ||||||
Adjusted1 | 73.2 | 69.4 | 74.2 | 67.6 | ||||||||||
ROTCE3—Non-GAAP | ||||||||||||||
Unadjusted | 19.6 | % | 15.0 | % | 19.7 | % | 14.3 | % | ||||||
Adjusted1 | 20.2 | % | 15.0 | % | 20.2 | % | 14.3 | % |
$ in millions | At September 30, 2022 | At December 31, 2021 | ||||||
Tangible equity | ||||||||
Common shareholders' equity | $ | 92,261 | $ | 97,691 | ||||
Less: Goodwill and net intangible assets | (24,613) | (25,192) | ||||||
Tangible common shareholders' equity—non-GAAP | $ | 67,648 | $ | 72,499 |
Average Monthly Balance | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Tangible equity | ||||||||||||||
Common shareholders' equity | $ | 92,905 | $ | 98,563 | $ | 94,654 | $ | 96,929 | ||||||
Less: Goodwill and net intangible assets | (24,715) | (25,433) | (24,921) | (22,836) | ||||||||||
Tangible common shareholders' equity—non-GAAP | $ | 68,190 | $ | 73,130 | $ | 69,733 | $ | 74,093 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in billions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Average common equity | ||||||||||||||
Unadjusted—GAAP | $ | 92.9 | $ | 98.6 | $ | 94.7 | $ | 96.9 | ||||||
Adjusted1—Non-GAAP | 92.9 | 98.6 | 94.8 | 97.0 | ||||||||||
ROE2 | ||||||||||||||
Unadjusted—GAAP | 10.7 | % | 14.5 | % | 11.9 | % | 15.1 | % | ||||||
Adjusted1—Non-GAAP | 11.1 | % | 15.0 | % | 12.2 | % | 15.4 | % | ||||||
Average tangible common equity—Non-GAAP | ||||||||||||||
Unadjusted | $ | 68.2 | $ | 73.1 | $ | 69.7 | $ | 74.1 | ||||||
Adjusted1 | 68.2 | 73.2 | 69.9 | 74.2 | ||||||||||
ROTCE2—Non-GAAP | ||||||||||||||
Unadjusted | 14.6 | % | 19.6 | % | 16.1 | % | 19.7 | % | ||||||
Adjusted1 | 15.2 | % | 20.2 | % | 16.6 | % | 20.2 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in billions | $ in billions | 2021 | 2020 | 2021 | 2020 | $ in billions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Average common equity4 | ||||||||||||||||||||||||||||
Average common equity3 | Average common equity3 | |||||||||||||||||||||||||||
Institutional Securities | Institutional Securities | $ | 43.5 | $ | 42.8 | $ | 43.5 | $ | 42.8 | Institutional Securities | $ | 48.8 | $ | 43.5 | $ | 48.8 | $ | 43.5 | ||||||||||
Wealth Management | Wealth Management | 28.6 | 18.2 | 28.6 | 18.2 | Wealth Management | 31.0 | 28.6 | 31.0 | 28.6 | ||||||||||||||||||
Investment Management | Investment Management | 10.7 | 2.6 | 8.2 | 2.6 | Investment Management | 10.6 | 10.7 | 10.6 | 8.2 | ||||||||||||||||||
ROE5 | ||||||||||||||||||||||||||||
ROE4 | ROE4 | |||||||||||||||||||||||||||
Institutional Securities | Institutional Securities | 20 | % | 15 | % | 20 | % | 13 | % | Institutional Securities | 10 | % | 20 | % | 12 | % | 20 | % | ||||||||||
Wealth Management | Wealth Management | 16 | % | 18 | % | 17 | % | 18 | % | Wealth Management | 16 | % | 16 | % | 16 | % | 17 | % | ||||||||||
Investment Management | Investment Management | 12 | % | 34 | % | 15 | % | 23 | % | Investment Management | 4 | % | 12 | % | 6 | % | 15 | % | ||||||||||
Average tangible common equity4 | ||||||||||||||||||||||||||||
Average tangible common equity3 | Average tangible common equity3 | |||||||||||||||||||||||||||
Institutional Securities | Institutional Securities | $ | 42.9 | $ | 42.3 | $ | 42.9 | $ | 42.3 | Institutional Securities | $ | 48.3 | $ | 42.9 | $ | 48.3 | $ | 42.9 | ||||||||||
Wealth Management | Wealth Management | 13.4 | 10.4 | 13.4 | 10.4 | Wealth Management | 16.3 | 13.4 | 16.3 | 13.4 | ||||||||||||||||||
Investment Management | Investment Management | 1.0 | 1.7 | 1.0 | 1.7 | Investment Management | 0.8 | 1.0 | 0.8 | 1.0 | ||||||||||||||||||
ROTCE5 | ||||||||||||||||||||||||||||
ROTCE4 | ROTCE4 | |||||||||||||||||||||||||||
Institutional Securities | Institutional Securities | 20 | % | 15 | % | 20 | % | 14 | % | Institutional Securities | 10 | % | 20 | % | 12 | % | 20 | % | ||||||||||
Wealth Management | Wealth Management | 34 | % | 31 | % | 35 | % | 32 | % | Wealth Management | 30 | % | 34 | % | 30 | % | 35 | % | ||||||||||
Investment Management | Investment Management | 161 | % | 53 | % | 128 | % | 36 | % | Investment Management | 56 | % | 161 | % | 87 | % | 128 | % |
September | 7 |
Management’s Discussion and Analysis |
8 | September 2022 Form 10-Q |
Management’s Discussion and Analysis |
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | % Change | $ in millions | 2022 | 2021 | % Change | ||||||||||||||
Revenues | Revenues | Revenues | ||||||||||||||||||||
Advisory | Advisory | $ | 1,272 | $ | 357 | N/M | Advisory | $ | 693 | $ | 1,272 | (46) | % | |||||||||
Equity | Equity | 1,010 | 874 | 16 | % | Equity | 218 | 1,010 | (78) | % | ||||||||||||
Fixed income | Fixed income | 567 | 476 | 19 | % | Fixed income | 366 | 567 | (35) | % | ||||||||||||
Total Underwriting | Total Underwriting | 1,577 | 1,350 | 17 | % | Total Underwriting | 584 | 1,577 | (63) | % | ||||||||||||
Total Investment banking | Total Investment banking | 2,849 | 1,707 | 67 | % | Total Investment banking | 1,277 | 2,849 | (55) | % | ||||||||||||
Equity1 | 2,876 | 2,311 | 24 | % | ||||||||||||||||||
Fixed income1 | 1,640 | 1,954 | (16) | % | ||||||||||||||||||
Other1 | 130 | 157 | (17) | % | ||||||||||||||||||
Equity | Equity | 2,459 | 2,876 | (14) | % | |||||||||||||||||
Fixed income | Fixed income | 2,181 | 1,640 | 33 | % | |||||||||||||||||
Other | Other | (100) | 130 | (177) | % | |||||||||||||||||
Net revenues | Net revenues | $ | 7,495 | $ | 6,129 | 22 | % | Net revenues | $ | 5,817 | $ | 7,495 | (22) | % | ||||||||
Provision for credit losses1 | 24 | 113 | (79) | % | ||||||||||||||||||
Provision for credit losses | Provision for credit losses | 24 | 24 | —% | ||||||||||||||||||
Compensation and benefits | Compensation and benefits | 2,248 | 2,001 | 12 | % | Compensation and benefits | 1,948 | 2,248 | (13) | % | ||||||||||||
Non-compensation expenses1 | 2,250 | 1,967 | 14 | % | ||||||||||||||||||
Total non-interest expenses1 | 4,498 | 3,968 | 13 | % | ||||||||||||||||||
Non-compensation expenses | Non-compensation expenses | 2,219 | 2,250 | (1) | % | |||||||||||||||||
Total non-interest expenses | Total non-interest expenses | 4,167 | 4,498 | (7) | % | |||||||||||||||||
Income before provision for income taxes | Income before provision for income taxes | 2,973 | 2,048 | 45 | % | Income before provision for income taxes | 1,626 | 2,973 | (45) | % | ||||||||||||
Provision for income taxes | Provision for income taxes | 713 | 385 | 85 | % | Provision for income taxes | 305 | 713 | (57) | % | ||||||||||||
Net income | Net income | 2,260 | 1,663 | 36 | % | Net income | 1,321 | 2,260 | (42) | % | ||||||||||||
Net income applicable to noncontrolling interests | Net income applicable to noncontrolling interests | 31 | 16 | 94 | % | Net income applicable to noncontrolling interests | 47 | 31 | 52 | % | ||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | $ | 2,229 | $ | 1,647 | 35 | % | Net income applicable to Morgan Stanley | $ | 1,274 | $ | 2,229 | (43) | % |
Nine Months Ended September 30, | |||||||||||
$ in millions | 2021 | 2020 | % Change | ||||||||
Revenues | |||||||||||
Advisory | $ | 2,416 | $ | 1,181 | 105 | % | |||||
Equity | 3,584 | 2,092 | 71 | % | |||||||
Fixed income | 1,838 | 1,629 | 13 | % | |||||||
Total Underwriting | 5,422 | 3,721 | 46 | % | |||||||
Total Investment banking | 7,838 | 4,902 | 60 | % | |||||||
Equity1 | 8,578 | 7,387 | 16 | % | |||||||
Fixed income1 | 6,288 | 7,057 | (11) | % | |||||||
Other1 | 460 | 160 | 188 | % | |||||||
Net revenues1 | $ | 23,164 | $ | 19,506 | 19 | % | |||||
Provision for credit losses1 | 1 | 718 | (100) | % | |||||||
Compensation and benefits | 7,795 | 6,767 | 15 | % | |||||||
Non-compensation expenses1 | 6,526 | 6,030 | 8 | % | |||||||
Total non-interest expenses1 | 14,321 | 12,797 | 12 | % | |||||||
Income before provision for income taxes | 8,842 | 5,991 | 48 | % | |||||||
Provision for income taxes | 2,023 | 1,326 | 53 | % | |||||||
Net income | 6,819 | 4,665 | 46 | % | |||||||
Net income applicable to noncontrolling interests | 85 | 75 | 13 | % | |||||||
Net income applicable to Morgan Stanley | $ | 6,734 | $ | 4,590 | 47 | % |
Nine Months Ended September 30, | |||||||||||
$ in millions | 2022 | 2021 | % Change | ||||||||
Revenues | |||||||||||
Advisory | $ | 2,235 | $ | 2,416 | (7) | % | |||||
Equity | 624 | 3,584 | (83) | % | |||||||
Fixed income | 1,124 | 1,838 | (39) | % | |||||||
Total Underwriting | 1,748 | 5,422 | (68) | % | |||||||
Total Investment banking | 3,983 | 7,838 | (49) | % | |||||||
Equity | 8,593 | 8,578 | —% | ||||||||
Fixed income | 7,604 | 6,288 | 21 | % | |||||||
Other | (587) | 460 | N/M | ||||||||
Net revenues | $ | 19,593 | $ | 23,164 | (15) | % | |||||
Provision for credit losses | 150 | 1 | N/M | ||||||||
Compensation and benefits | 6,602 | 7,795 | (15) | % | |||||||
Non-compensation expenses | 6,874 | 6,526 | 5 | % | |||||||
Total non-interest expenses | 13,476 | 14,321 | (6) | % | |||||||
Income before provision for income taxes | 5,967 | 8,842 | (33) | % | |||||||
Provision for income taxes | 1,235 | 2,023 | (39) | % | |||||||
Net income | 4,732 | 6,819 | (31) | % | |||||||
Net income applicable to noncontrolling interests | 146 | 85 | 72 | % | |||||||
Net income applicable to Morgan Stanley | $ | 4,586 | $ | 6,734 | (32) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in billions | $ in billions | 2021 | 2020 | 2021 | 2020 | $ in billions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Completed mergers and acquisitions1 | Completed mergers and acquisitions1 | $ | 352 | $ | 110 | $ | 732 | $ | 662 | Completed mergers and acquisitions1 | $ | 138 | $ | 365 | $ | 629 | $ | 744 | ||||||||||
Equity and equity-related offerings2, 3 | Equity and equity-related offerings2, 3 | 22 | 26 | 92 | 75 | Equity and equity-related offerings2, 3 | 5 | 23 | 16 | 93 | ||||||||||||||||||
Fixed income offerings2, 4 | Fixed income offerings2, 4 | 73 | 93 | 284 | 308 | Fixed income offerings2, 4 | 51 | 85 | 187 | 298 |
September |
Management’s Discussion and Analysis |
Three Months Ended September 30, 2021 | |||||||||||||||||
Net Interest2 | All Other3 | ||||||||||||||||
$ in millions | Trading | Fees1 | Total | ||||||||||||||
Financing | $ | 1,204 | $ | 123 | $ | 130 | $ | 1 | $ | 1,458 | |||||||
Execution services | 832 | 612 | (62) | 36 | 1,418 | ||||||||||||
Total Equity | $ | 2,036 | $ | 735 | $ | 68 | $ | 37 | $ | 2,876 | |||||||
Total Fixed Income | $ | 1,029 | $ | 75 | $ | 479 | $ | 57 | $ | 1,640 |
Three Months Ended September 30, 20204 | |||||||||||||||||
Net Interest2 | All Other3 | ||||||||||||||||
$ in millions | Trading | Fees1 | Total | ||||||||||||||
Financing | $ | 929 | $ | 108 | $ | 116 | $ | — | $ | 1,153 | |||||||
Execution services | 606 | 580 | (77) | 49 | 1,158 | ||||||||||||
Total Equity | $ | 1,535 | $ | 688 | $ | 39 | $ | 49 | $ | 2,311 | |||||||
Total Fixed Income | $ | 1,420 | $ | 65 | $ | 442 | $ | 27 | $ | 1,954 |
Nine Months Ended September 30, 2021 | |||||||||||||||||
Net Interest2 | All Other3 | ||||||||||||||||
$ in millions | Trading | Fees1 | Total | ||||||||||||||
Financing | $ | 2,987 | $ | 374 | $ | 429 | $ | 7 | $ | 3,797 | |||||||
Execution services | 2,764 | 2,048 | (169) | 138 | 4,781 | ||||||||||||
Total Equity | $ | 5,751 | $ | 2,422 | $ | 260 | $ | 145 | $ | 8,578 | |||||||
Total Fixed Income | $ | 4,490 | $ | 228 | $ | 1,335 | $ | 235 | $ | 6,288 |
Nine Months Ended September 30, 20204 | |||||||||||||||||
Net Interest2 | All Other3 | ||||||||||||||||
$ in millions | Trading | Fees1 | Total | ||||||||||||||
Financing | $ | 2,847 | $ | 325 | $ | 172 | $ | 4 | $ | 3,348 | |||||||
Execution services | 2,134 | 2,014 | (189) | 80 | 4,039 | ||||||||||||
Total Equity | $ | 4,981 | $ | 2,339 | $ | (17) | $ | 84 | $ | 7,387 | |||||||
Total Fixed Income | $ | 5,661 | $ | 234 | $ | 1,274 | $ | (112) | $ | 7,057 |
September |
Management’s Discussion and Analysis |
September 2022 Form 10-Q | 5 |
Management’s Discussion and Analysis |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Consolidated results | ||||||||||||||
Net revenues | $ | 12,986 | $ | 14,753 | $ | 40,919 | $ | 45,231 | ||||||
Earnings applicable to Morgan Stanley common shareholders | $ | 2,494 | $ | 3,584 | $ | 8,427 | $ | 10,974 | ||||||
Earnings per diluted common share | $ | 1.47 | $ | 1.98 | $ | 4.88 | $ | 6.02 | ||||||
Consolidated financial measures | ||||||||||||||
Expense efficiency ratio1 | 74 | % | 67 | % | 72 | % | 67 | % | ||||||
Adjusted expense efficiency ratio1, 2 | 73 | % | 66 | % | 71 | % | 67 | % | ||||||
ROE3 | 10.7 | % | 14.5 | % | 11.9 | % | 15.1 | % | ||||||
Adjusted ROE2, 3 | 11.1 | % | 15.0 | % | 12.2 | % | 15.4 | % | ||||||
ROTCE2, 3 | 14.6 | % | 19.6 | % | 16.1 | % | 19.7 | % | ||||||
Adjusted ROTCE2, 3 | 15.2 | % | 20.2 | % | 16.6 | % | 20.2 | % | ||||||
Pre-tax margin4 | 26 | % | 33 | % | 28 | % | 33 | % | ||||||
Effective tax rate | 21.4 | % | 23.6 | % | 21.1 | % | 22.9 | % | ||||||
Average liquidity resources5 | $ | 308,001 | $ | 358,310 | N/M | N/M | ||||||||
Pre-tax margin by segment4 | ||||||||||||||
Institutional Securities | 28 | % | 40 | % | 30 | % | 38 | % | ||||||
Wealth Management | 27 | % | 26 | % | 27 | % | 26 | % | ||||||
Wealth Management, adjusted2 | 28 | % | 28 | % | 28 | % | 28 | % | ||||||
Investment Management | 10 | % | 25 | % | 15 | % | 26 | % | ||||||
Investment Management, adjusted2 | 13 | % | 28 | % | 17 | % | 28 | % |
in millions, except per share and employee data | At September 30, 2022 | At December 31, 2021 | ||||||
Loans6 | $ | 218,448 | $ | 200,761 | ||||
Total assets | $ | 1,160,029 | $ | 1,188,140 | ||||
Deposits | $ | 338,123 | $ | 347,574 | ||||
Borrowings | $ | 220,423 | $ | 233,127 | ||||
Common shareholders' equity | $ | 92,261 | $ | 97,691 | ||||
Tangible common shareholders’ equity2 | $ | 67,648 | $ | 72,499 | ||||
Common shares outstanding | 1,694 | 1,772 | ||||||
Book value per common share7 | $ | 54.46 | $ | 55.12 | ||||
Tangible book value per common share2, 7 | $ | 39.93 | $ | 40.91 | ||||
Worldwide employees (in thousands) | 82 | 75 | ||||||
Client assets8 (in billions) | $ | 5,413 | $ | 6,554 | ||||
Capital Ratios9 | ||||||||
Common Equity Tier 1 capital—Standardized | 14.8 | % | 16.0 | % | ||||
Tier 1 capital—Standardized | 16.7 | % | 17.7 | % | ||||
Common Equity Tier 1 capital—Advanced | 15.2 | % | 17.4 | % | ||||
Tier 1 capital—Advanced | 17.1 | % | 19.1 | % | ||||
Tier 1 leverage | 6.6 | % | 7.1 | % | ||||
SLR | 5.4 | % | 5.6 | % |
6 | September 2022 Form 10-Q |
Management’s Discussion and Analysis |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions, except per share data | 2022 | 2021 | 2022 | 2021 | ||||||||||
Earnings applicable to Morgan Stanley common shareholders | $ | 2,494 | $ | 3,584 | $ | 8,427 | $ | 10,974 | ||||||
Impact of adjustments: | ||||||||||||||
Wealth Management—Compensation expenses | 3 | 9 | 8 | 48 | ||||||||||
Wealth Management—Non-compensation expenses | 89 | 104 | 255 | 189 | ||||||||||
Investment Management—Compensation expenses | 7 | 10 | 23 | 29 | ||||||||||
Investment Management—Non-compensation expenses | 24 | 22 | 64 | 44 | ||||||||||
Integration-related expenses | 123 | 145 | 350 | 310 | ||||||||||
Related tax benefit | (29) | (34) | (82) | (72) | ||||||||||
Adjusted earnings applicable to Morgan Stanley common shareholders—non-GAAP1 | $ | 2,588 | $ | 3,695 | $ | 8,695 | $ | 11,212 | ||||||
Earnings per diluted common share | $ | 1.47 | $ | 1.98 | $ | 4.88 | $ | 6.02 | ||||||
Impact of adjustments | 0.06 | 0.06 | 0.16 | 0.13 | ||||||||||
Adjusted earnings per diluted common share—non-GAAP1 | $ | 1.53 | $ | 2.04 | $ | 5.04 | $ | 6.15 | ||||||
Expense efficiency ratio | 74 | % | 67 | % | 72 | % | 67 | % | ||||||
Impact of adjustments | (1) | % | (1) | % | (1) | % | — | % | ||||||
Adjusted expense efficiency ratio—non-GAAP1 | 73 | % | 66 | % | 71 | % | 67 | % | ||||||
Wealth Management Pre-tax margin | 27 | % | 26 | % | 27 | % | 26 | % | ||||||
Impact of adjustments | 1 | % | 2 | % | 1 | % | 2 | % | ||||||
Adjusted Wealth Management pre-tax margin—non-GAAP1 | 28 | % | 28 | % | 28 | % | 28 | % | ||||||
Investment Management Pre-tax margin | 10 | % | 25 | % | 15 | % | 26 | % | ||||||
Impact of adjustments | 3 | % | 3 | % | 2 | % | 2 | % | ||||||
Adjusted Investment Management pre-tax margin—non-GAAP1 | 13 | % | 28 | % | 17 | % | 28 | % |
$ in millions | At September 30, 2022 | At December 31, 2021 | ||||||
Tangible equity | ||||||||
Common shareholders' equity | $ | 92,261 | $ | 97,691 | ||||
Less: Goodwill and net intangible assets | (24,613) | (25,192) | ||||||
Tangible common shareholders' equity—non-GAAP | $ | 67,648 | $ | 72,499 |
Average Monthly Balance | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Tangible equity | ||||||||||||||
Common shareholders' equity | $ | 92,905 | $ | 98,563 | $ | 94,654 | $ | 96,929 | ||||||
Less: Goodwill and net intangible assets | (24,715) | (25,433) | (24,921) | (22,836) | ||||||||||
Tangible common shareholders' equity—non-GAAP | $ | 68,190 | $ | 73,130 | $ | 69,733 | $ | 74,093 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in billions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Average common equity | ||||||||||||||
Unadjusted—GAAP | $ | 92.9 | $ | 98.6 | $ | 94.7 | $ | 96.9 | ||||||
Adjusted1—Non-GAAP | 92.9 | 98.6 | 94.8 | 97.0 | ||||||||||
ROE2 | ||||||||||||||
Unadjusted—GAAP | 10.7 | % | 14.5 | % | 11.9 | % | 15.1 | % | ||||||
Adjusted1—Non-GAAP | 11.1 | % | 15.0 | % | 12.2 | % | 15.4 | % | ||||||
Average tangible common equity—Non-GAAP | ||||||||||||||
Unadjusted | $ | 68.2 | $ | 73.1 | $ | 69.7 | $ | 74.1 | ||||||
Adjusted1 | 68.2 | 73.2 | 69.9 | 74.2 | ||||||||||
ROTCE2—Non-GAAP | ||||||||||||||
Unadjusted | 14.6 | % | 19.6 | % | 16.1 | % | 19.7 | % | ||||||
Adjusted1 | 15.2 | % | 20.2 | % | 16.6 | % | 20.2 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in billions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Average common equity3 | ||||||||||||||
Institutional Securities | $ | 48.8 | $ | 43.5 | $ | 48.8 | $ | 43.5 | ||||||
Wealth Management | 31.0 | 28.6 | 31.0 | 28.6 | ||||||||||
Investment Management | 10.6 | 10.7 | 10.6 | 8.2 | ||||||||||
ROE4 | ||||||||||||||
Institutional Securities | 10 | % | 20 | % | 12 | % | 20 | % | ||||||
Wealth Management | 16 | % | 16 | % | 16 | % | 17 | % | ||||||
Investment Management | 4 | % | 12 | % | 6 | % | 15 | % | ||||||
Average tangible common equity3 | ||||||||||||||
Institutional Securities | $ | 48.3 | $ | 42.9 | $ | 48.3 | $ | 42.9 | ||||||
Wealth Management | 16.3 | 13.4 | 16.3 | 13.4 | ||||||||||
Investment Management | 0.8 | 1.0 | 0.8 | 1.0 | ||||||||||
ROTCE4 | ||||||||||||||
Institutional Securities | 10 | % | 20 | % | 12 | % | 20 | % | ||||||
Wealth Management | 30 | % | 34 | % | 30 | % | 35 | % | ||||||
Investment Management | 56 | % | 161 | % | 87 | % | 128 | % |
September 2022 Form 10-Q | 7 |
Management’s Discussion and Analysis |
8 | September 2022 Form 10-Q |
Management’s Discussion and Analysis |
Three Months Ended September 30, | |||||||||||
$ in millions | 2022 | 2021 | % Change | ||||||||
Revenues | |||||||||||
Advisory | $ | 693 | $ | 1,272 | (46) | % | |||||
Equity | 218 | 1,010 | (78) | % | |||||||
Fixed income | 366 | 567 | (35) | % | |||||||
Total Underwriting | 584 | 1,577 | (63) | % | |||||||
Total Investment banking | 1,277 | 2,849 | (55) | % | |||||||
Equity | 2,459 | 2,876 | (14) | % | |||||||
Fixed income | 2,181 | 1,640 | 33 | % | |||||||
Other | (100) | 130 | (177) | % | |||||||
Net revenues | $ | 5,817 | $ | 7,495 | (22) | % | |||||
Provision for credit losses | 24 | 24 | —% | ||||||||
Compensation and benefits | 1,948 | 2,248 | (13) | % | |||||||
Non-compensation expenses | 2,219 | 2,250 | (1) | % | |||||||
Total non-interest expenses | 4,167 | 4,498 | (7) | % | |||||||
Income before provision for income taxes | 1,626 | 2,973 | (45) | % | |||||||
Provision for income taxes | 305 | 713 | (57) | % | |||||||
Net income | 1,321 | 2,260 | (42) | % | |||||||
Net income applicable to noncontrolling interests | 47 | 31 | 52 | % | |||||||
Net income applicable to Morgan Stanley | $ | 1,274 | $ | 2,229 | (43) | % |
Nine Months Ended September 30, | |||||||||||
$ in millions | 2022 | 2021 | % Change | ||||||||
Revenues | |||||||||||
Advisory | $ | 2,235 | $ | 2,416 | (7) | % | |||||
Equity | 624 | 3,584 | (83) | % | |||||||
Fixed income | 1,124 | 1,838 | (39) | % | |||||||
Total Underwriting | 1,748 | 5,422 | (68) | % | |||||||
Total Investment banking | 3,983 | 7,838 | (49) | % | |||||||
Equity | 8,593 | 8,578 | —% | ||||||||
Fixed income | 7,604 | 6,288 | 21 | % | |||||||
Other | (587) | 460 | N/M | ||||||||
Net revenues | $ | 19,593 | $ | 23,164 | (15) | % | |||||
Provision for credit losses | 150 | 1 | N/M | ||||||||
Compensation and benefits | 6,602 | 7,795 | (15) | % | |||||||
Non-compensation expenses | 6,874 | 6,526 | 5 | % | |||||||
Total non-interest expenses | 13,476 | 14,321 | (6) | % | |||||||
Income before provision for income taxes | 5,967 | 8,842 | (33) | % | |||||||
Provision for income taxes | 1,235 | 2,023 | (39) | % | |||||||
Net income | 4,732 | 6,819 | (31) | % | |||||||
Net income applicable to noncontrolling interests | 146 | 85 | 72 | % | |||||||
Net income applicable to Morgan Stanley | $ | 4,586 | $ | 6,734 | (32) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in billions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Completed mergers and acquisitions1 | $ | 138 | $ | 365 | $ | 629 | $ | 744 | ||||||
Equity and equity-related offerings2, 3 | 5 | 23 | 16 | 93 | ||||||||||
Fixed income offerings2, 4 | 51 | 85 | 187 | 298 |
September 2022 Form 10-Q | 3 |
Management’s Discussion and Analysis |
4 | September 2022 Form 10-Q |
Management’s Discussion and Analysis |
September 2022 Form 10-Q | 5 |
Management’s Discussion and Analysis |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Consolidated results | ||||||||||||||
Net revenues | $ | 12,986 | $ | 14,753 | $ | 40,919 | $ | 45,231 | ||||||
Earnings applicable to Morgan Stanley common shareholders | $ | 2,494 | $ | 3,584 | $ | 8,427 | $ | 10,974 | ||||||
Earnings per diluted common share | $ | 1.47 | $ | 1.98 | $ | 4.88 | $ | 6.02 | ||||||
Consolidated financial measures | ||||||||||||||
Expense efficiency ratio1 | 74 | % | 67 | % | 72 | % | 67 | % | ||||||
Adjusted expense efficiency ratio1, 2 | 73 | % | 66 | % | 71 | % | 67 | % | ||||||
ROE3 | 10.7 | % | 14.5 | % | 11.9 | % | 15.1 | % | ||||||
Adjusted ROE2, 3 | 11.1 | % | 15.0 | % | 12.2 | % | 15.4 | % | ||||||
ROTCE2, 3 | 14.6 | % | 19.6 | % | 16.1 | % | 19.7 | % | ||||||
Adjusted ROTCE2, 3 | 15.2 | % | 20.2 | % | 16.6 | % | 20.2 | % | ||||||
Pre-tax margin4 | 26 | % | 33 | % | 28 | % | 33 | % | ||||||
Effective tax rate | 21.4 | % | 23.6 | % | 21.1 | % | 22.9 | % | ||||||
Average liquidity resources5 | $ | 308,001 | $ | 358,310 | N/M | N/M | ||||||||
Pre-tax margin by segment4 | ||||||||||||||
Institutional Securities | 28 | % | 40 | % | 30 | % | 38 | % | ||||||
Wealth Management | 27 | % | 26 | % | 27 | % | 26 | % | ||||||
Wealth Management, adjusted2 | 28 | % | 28 | % | 28 | % | 28 | % | ||||||
Investment Management | 10 | % | 25 | % | 15 | % | 26 | % | ||||||
Investment Management, adjusted2 | 13 | % | 28 | % | 17 | % | 28 | % |
in millions, except per share and employee data | At September 30, 2022 | At December 31, 2021 | ||||||
Loans6 | $ | 218,448 | $ | 200,761 | ||||
Total assets | $ | 1,160,029 | $ | 1,188,140 | ||||
Deposits | $ | 338,123 | $ | 347,574 | ||||
Borrowings | $ | 220,423 | $ | 233,127 | ||||
Common shareholders' equity | $ | 92,261 | $ | 97,691 | ||||
Tangible common shareholders’ equity2 | $ | 67,648 | $ | 72,499 | ||||
Common shares outstanding | 1,694 | 1,772 | ||||||
Book value per common share7 | $ | 54.46 | $ | 55.12 | ||||
Tangible book value per common share2, 7 | $ | 39.93 | $ | 40.91 | ||||
Worldwide employees (in thousands) | 82 | 75 | ||||||
Client assets8 (in billions) | $ | 5,413 | $ | 6,554 | ||||
Capital Ratios9 | ||||||||
Common Equity Tier 1 capital—Standardized | 14.8 | % | 16.0 | % | ||||
Tier 1 capital—Standardized | 16.7 | % | 17.7 | % | ||||
Common Equity Tier 1 capital—Advanced | 15.2 | % | 17.4 | % | ||||
Tier 1 capital—Advanced | 17.1 | % | 19.1 | % | ||||
Tier 1 leverage | 6.6 | % | 7.1 | % | ||||
SLR | 5.4 | % | 5.6 | % |
6 | September 2022 Form 10-Q |
Management’s Discussion and Analysis |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions, except per share data | 2022 | 2021 | 2022 | 2021 | ||||||||||
Earnings applicable to Morgan Stanley common shareholders | $ | 2,494 | $ | 3,584 | $ | 8,427 | $ | 10,974 | ||||||
Impact of adjustments: | ||||||||||||||
Wealth Management—Compensation expenses | 3 | 9 | 8 | 48 | ||||||||||
Wealth Management—Non-compensation expenses | 89 | 104 | 255 | 189 | ||||||||||
Investment Management—Compensation expenses | 7 | 10 | 23 | 29 | ||||||||||
Investment Management—Non-compensation expenses | 24 | 22 | 64 | 44 | ||||||||||
Integration-related expenses | 123 | 145 | 350 | 310 | ||||||||||
Related tax benefit | (29) | (34) | (82) | (72) | ||||||||||
Adjusted earnings applicable to Morgan Stanley common shareholders—non-GAAP1 | $ | 2,588 | $ | 3,695 | $ | 8,695 | $ | 11,212 | ||||||
Earnings per diluted common share | $ | 1.47 | $ | 1.98 | $ | 4.88 | $ | 6.02 | ||||||
Impact of adjustments | 0.06 | 0.06 | 0.16 | 0.13 | ||||||||||
Adjusted earnings per diluted common share—non-GAAP1 | $ | 1.53 | $ | 2.04 | $ | 5.04 | $ | 6.15 | ||||||
Expense efficiency ratio | 74 | % | 67 | % | 72 | % | 67 | % | ||||||
Impact of adjustments | (1) | % | (1) | % | (1) | % | — | % | ||||||
Adjusted expense efficiency ratio—non-GAAP1 | 73 | % | 66 | % | 71 | % | 67 | % | ||||||
Wealth Management Pre-tax margin | 27 | % | 26 | % | 27 | % | 26 | % | ||||||
Impact of adjustments | 1 | % | 2 | % | 1 | % | 2 | % | ||||||
Adjusted Wealth Management pre-tax margin—non-GAAP1 | 28 | % | 28 | % | 28 | % | 28 | % | ||||||
Investment Management Pre-tax margin | 10 | % | 25 | % | 15 | % | 26 | % | ||||||
Impact of adjustments | 3 | % | 3 | % | 2 | % | 2 | % | ||||||
Adjusted Investment Management pre-tax margin—non-GAAP1 | 13 | % | 28 | % | 17 | % | 28 | % |
$ in millions | At September 30, 2022 | At December 31, 2021 | ||||||
Tangible equity | ||||||||
Common shareholders' equity | $ | 92,261 | $ | 97,691 | ||||
Less: Goodwill and net intangible assets | (24,613) | (25,192) | ||||||
Tangible common shareholders' equity—non-GAAP | $ | 67,648 | $ | 72,499 |
Average Monthly Balance | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Tangible equity | ||||||||||||||
Common shareholders' equity | $ | 92,905 | $ | 98,563 | $ | 94,654 | $ | 96,929 | ||||||
Less: Goodwill and net intangible assets | (24,715) | (25,433) | (24,921) | (22,836) | ||||||||||
Tangible common shareholders' equity—non-GAAP | $ | 68,190 | $ | 73,130 | $ | 69,733 | $ | 74,093 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in billions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Average common equity | ||||||||||||||
Unadjusted—GAAP | $ | 92.9 | $ | 98.6 | $ | 94.7 | $ | 96.9 | ||||||
Adjusted1—Non-GAAP | 92.9 | 98.6 | 94.8 | 97.0 | ||||||||||
ROE2 | ||||||||||||||
Unadjusted—GAAP | 10.7 | % | 14.5 | % | 11.9 | % | 15.1 | % | ||||||
Adjusted1—Non-GAAP | 11.1 | % | 15.0 | % | 12.2 | % | 15.4 | % | ||||||
Average tangible common equity—Non-GAAP | ||||||||||||||
Unadjusted | $ | 68.2 | $ | 73.1 | $ | 69.7 | $ | 74.1 | ||||||
Adjusted1 | 68.2 | 73.2 | 69.9 | 74.2 | ||||||||||
ROTCE2—Non-GAAP | ||||||||||||||
Unadjusted | 14.6 | % | 19.6 | % | 16.1 | % | 19.7 | % | ||||||
Adjusted1 | 15.2 | % | 20.2 | % | 16.6 | % | 20.2 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in billions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Average common equity3 | ||||||||||||||
Institutional Securities | $ | 48.8 | $ | 43.5 | $ | 48.8 | $ | 43.5 | ||||||
Wealth Management | 31.0 | 28.6 | 31.0 | 28.6 | ||||||||||
Investment Management | 10.6 | 10.7 | 10.6 | 8.2 | ||||||||||
ROE4 | ||||||||||||||
Institutional Securities | 10 | % | 20 | % | 12 | % | 20 | % | ||||||
Wealth Management | 16 | % | 16 | % | 16 | % | 17 | % | ||||||
Investment Management | 4 | % | 12 | % | 6 | % | 15 | % | ||||||
Average tangible common equity3 | ||||||||||||||
Institutional Securities | $ | 48.3 | $ | 42.9 | $ | 48.3 | $ | 42.9 | ||||||
Wealth Management | 16.3 | 13.4 | 16.3 | 13.4 | ||||||||||
Investment Management | 0.8 | 1.0 | 0.8 | 1.0 | ||||||||||
ROTCE4 | ||||||||||||||
Institutional Securities | 10 | % | 20 | % | 12 | % | 20 | % | ||||||
Wealth Management | 30 | % | 34 | % | 30 | % | 35 | % | ||||||
Investment Management | 56 | % | 161 | % | 87 | % | 128 | % |
September 2022 Form 10-Q | 7 |
Management’s Discussion and Analysis |
8 | September 2022 Form 10-Q |
Management’s Discussion and Analysis |
Three Months Ended September 30, | |||||||||||
$ in millions | 2022 | 2021 | % Change | ||||||||
Revenues | |||||||||||
Advisory | $ | 693 | $ | 1,272 | (46) | % | |||||
Equity | 218 | 1,010 | (78) | % | |||||||
Fixed income | 366 | 567 | (35) | % | |||||||
Total Underwriting | 584 | 1,577 | (63) | % | |||||||
Total Investment banking | 1,277 | 2,849 | (55) | % | |||||||
Equity | 2,459 | 2,876 | (14) | % | |||||||
Fixed income | 2,181 | 1,640 | 33 | % | |||||||
Other | (100) | 130 | (177) | % | |||||||
Net revenues | $ | 5,817 | $ | 7,495 | (22) | % | |||||
Provision for credit losses | 24 | 24 | —% | ||||||||
Compensation and benefits | 1,948 | 2,248 | (13) | % | |||||||
Non-compensation expenses | 2,219 | 2,250 | (1) | % | |||||||
Total non-interest expenses | 4,167 | 4,498 | (7) | % | |||||||
Income before provision for income taxes | 1,626 | 2,973 | (45) | % | |||||||
Provision for income taxes | 305 | 713 | (57) | % | |||||||
Net income | 1,321 | 2,260 | (42) | % | |||||||
Net income applicable to noncontrolling interests | 47 | 31 | 52 | % | |||||||
Net income applicable to Morgan Stanley | $ | 1,274 | $ | 2,229 | (43) | % |
Nine Months Ended September 30, | |||||||||||
$ in millions | 2022 | 2021 | % Change | ||||||||
Revenues | |||||||||||
Advisory | $ | 2,235 | $ | 2,416 | (7) | % | |||||
Equity | 624 | 3,584 | (83) | % | |||||||
Fixed income | 1,124 | 1,838 | (39) | % | |||||||
Total Underwriting | 1,748 | 5,422 | (68) | % | |||||||
Total Investment banking | 3,983 | 7,838 | (49) | % | |||||||
Equity | 8,593 | 8,578 | —% | ||||||||
Fixed income | 7,604 | 6,288 | 21 | % | |||||||
Other | (587) | 460 | N/M | ||||||||
Net revenues | $ | 19,593 | $ | 23,164 | (15) | % | |||||
Provision for credit losses | 150 | 1 | N/M | ||||||||
Compensation and benefits | 6,602 | 7,795 | (15) | % | |||||||
Non-compensation expenses | 6,874 | 6,526 | 5 | % | |||||||
Total non-interest expenses | 13,476 | 14,321 | (6) | % | |||||||
Income before provision for income taxes | 5,967 | 8,842 | (33) | % | |||||||
Provision for income taxes | 1,235 | 2,023 | (39) | % | |||||||
Net income | 4,732 | 6,819 | (31) | % | |||||||
Net income applicable to noncontrolling interests | 146 | 85 | 72 | % | |||||||
Net income applicable to Morgan Stanley | $ | 4,586 | $ | 6,734 | (32) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in billions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Completed mergers and acquisitions1 | $ | 138 | $ | 365 | $ | 629 | $ | 744 | ||||||
Equity and equity-related offerings2, 3 | 5 | 23 | 16 | 93 | ||||||||||
Fixed income offerings2, 4 | 51 | 85 | 187 | 298 |
September 2022 Form 10-Q | 9 |
Management’s Discussion and Analysis |
Three Months Ended September 30, 2022 | |||||||||||||||||
Net Interest2 | All Other3 | ||||||||||||||||
$ in millions | Trading | Fees1 | Total | ||||||||||||||
Financing | $ | 1,308 | $ | 132 | $ | (74) | $ | 2 | $ | 1,368 | |||||||
Execution services | 578 | 573 | 21 | (81) | 1,091 | ||||||||||||
Total Equity | $ | 1,886 | $ | 705 | $ | (53) | $ | (79) | $ | 2,459 | |||||||
Total Fixed Income | $ | 1,928 | $ | 85 | $ | 133 | $ | 35 | $ | 2,181 |
Three Months Ended September 30, 2021 | |||||||||||||||||
Net Interest2 | All Other3 | ||||||||||||||||
$ in millions | Trading | Fees1 | Total | ||||||||||||||
Financing | $ | 1,204 | $ | 123 | $ | 130 | $ | 1 | $ | 1,458 | |||||||
Execution services | 832 | 612 | (62) | 36 | 1,418 | ||||||||||||
Total Equity | $ | 2,036 | $ | 735 | $ | 68 | $ | 37 | $ | 2,876 | |||||||
Total Fixed Income | $ | 1,029 | $ | 75 | $ | 479 | $ | 57 | $ | 1,640 |
Nine Months Ended September 30, 2022 | |||||||||||||||||
Net Interest2 | All Other3 | ||||||||||||||||
$ in millions | Trading | Fees1 | Total | ||||||||||||||
Financing | $ | 3,914 | $ | 404 | $ | 46 | $ | 7 | $ | 4,371 | |||||||
Execution services | 2,371 | 1,887 | (22) | (14) | 4,222 | ||||||||||||
Total Equity | $ | 6,285 | $ | 2,291 | $ | 24 | $ | (7) | $ | 8,593 | |||||||
Total Fixed Income | $ | 6,263 | $ | 264 | $ | 1,046 | $ | 31 | $ | 7,604 |
Nine Months Ended September 30, 2021 | |||||||||||||||||
Net Interest2 | All Other3 | ||||||||||||||||
$ in millions | Trading | Fees1 | Total | ||||||||||||||
Financing | $ | 2,987 | $ | 374 | $ | 429 | $ | 7 | $ | 3,797 | |||||||
Execution services | 2,764 | 2,048 | (169) | 138 | 4,781 | ||||||||||||
Total Equity | $ | 5,751 | $ | 2,422 | $ | 260 | $ | 145 | $ | 8,578 | |||||||
Total Fixed Income | $ | 4,490 | $ | 228 | $ | 1,335 | $ | 235 | $ | 6,288 |
10 | September 2022 Form 10-Q |
Management’s Discussion and Analysis |
September | 11 |
Management’s Discussion and Analysis |
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | % Change | $ in millions | 2022 | 2021 | % Change | ||||||||||||||
Revenues | Revenues | Revenues | ||||||||||||||||||||
Asset management | Asset management | $ | 3,628 | $ | 2,793 | 30 | % | Asset management | $ | 3,389 | $ | 3,628 | (7) | % | ||||||||
Transactional1 | Transactional1 | 832 | 880 | (5) | % | Transactional1 | 616 | 832 | (26) | % | ||||||||||||
Net interest | Net interest | 1,348 | 889 | 52 | % | Net interest | 2,004 | 1,348 | 49 | % | ||||||||||||
Other1,2 | 127 | 92 | 38 | % | ||||||||||||||||||
Other1 | Other1 | 111 | 127 | (13) | % | |||||||||||||||||
Net revenues | Net revenues | 5,935 | 4,654 | 28 | % | Net revenues | 6,120 | 5,935 | 3 | % | ||||||||||||
Provision for credit losses2 | — | (2) | 100 | % | ||||||||||||||||||
Provision for credit losses | Provision for credit losses | 11 | — | N/M | ||||||||||||||||||
Compensation and benefits | Compensation and benefits | 3,159 | 2,684 | 18 | % | Compensation and benefits | 3,171 | 3,159 | — | % | ||||||||||||
Non-compensation expenses | Non-compensation expenses | 1,246 | 852 | 46 | % | Non-compensation expenses | 1,289 | 1,246 | 3 | % | ||||||||||||
Total non-interest expenses | Total non-interest expenses | 4,405 | 3,536 | 25 | % | Total non-interest expenses | 4,460 | 4,405 | 1 | % | ||||||||||||
Income before provision for income taxes | Income before provision for income taxes | $ | 1,530 | $ | 1,120 | 37 | % | Income before provision for income taxes | $ | 1,649 | $ | 1,530 | 8 | % | ||||||||
Provision for income taxes | Provision for income taxes | 373 | 278 | 34 | % | Provision for income taxes | 396 | 373 | 6 | % | ||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | $ | 1,157 | $ | 842 | 37 | % | Net income applicable to Morgan Stanley | $ | 1,253 | $ | 1,157 | 8 | % |
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | % Change | $ in millions | 2022 | 2021 | % Change | ||||||||||||||
Revenues | Revenues | Revenues | ||||||||||||||||||||
Asset management | Asset management | $ | 10,266 | $ | 7,980 | 29 | % | Asset management | $ | 10,525 | $ | 10,266 | 3 | % | ||||||||
Transactional1 | Transactional1 | 3,232 | 2,354 | 37 | % | Transactional1 | 1,542 | 3,232 | (52) | % | ||||||||||||
Net interest | Net interest | 3,988 | 2,815 | 42 | % | Net interest | 5,291 | 3,988 | 33 | % | ||||||||||||
Other1,2 | 503 | 265 | 90 | % | ||||||||||||||||||
Other1 | Other1 | 433 | 503 | (14) | % | |||||||||||||||||
Net revenues | Net revenues | 17,989 | 13,414 | 34 | % | Net revenues | 17,791 | 17,989 | (1) | % | ||||||||||||
Provision for credit losses2 | (2) | 39 | (105) | % | ||||||||||||||||||
Provision for credit losses | Provision for credit losses | 43 | (2) | N/M | ||||||||||||||||||
Compensation and benefits | Compensation and benefits | 9,604 | 7,625 | 26 | % | Compensation and benefits | 9,191 | 9,604 | (4) | % | ||||||||||||
Non-compensation expenses | Non-compensation expenses | 3,621 | 2,433 | 49 | % | Non-compensation expenses | 3,814 | 3,621 | 5 | % | ||||||||||||
Total non-interest expenses | Total non-interest expenses | 13,225 | 10,058 | 31 | % | Total non-interest expenses | 13,005 | 13,225 | (2) | % | ||||||||||||
Income before provision for income taxes | Income before provision for income taxes | $ | 4,766 | $ | 3,317 | 44 | % | Income before provision for income taxes | $ | 4,743 | $ | 4,766 | — | % | ||||||||
Provision for income taxes | Provision for income taxes | 1,103 | 758 | 46 | % | Provision for income taxes | 1,028 | 1,103 | (7) | % | ||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | $ | 3,663 | $ | 2,559 | 43 | % | Net income applicable to Morgan Stanley | $ | 3,715 | $ | 3,663 | 1 | % |
$ in billions | $ in billions | At September 30, 2021 | At December 31, 2020 | $ in billions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Total client assets | $ | 4,629 | $ | 3,999 | ||||||||||||
Total client assets1 | Total client assets1 | $ | 4,134 | $ | 4,989 | |||||||||||
U.S. Bank Subsidiary loans | U.S. Bank Subsidiary loans | $ | 121 | $ | 98 | U.S. Bank Subsidiary loans | $ | 146 | $ | 129 | ||||||
Margin and other lending1 | $ | 29 | $ | 23 | ||||||||||||
Deposits2 | $ | 327 | $ | 306 | ||||||||||||
Margin and other lending2 | Margin and other lending2 | $ | 24 | $ | 31 | |||||||||||
Deposits3 | Deposits3 | $ | 332 | $ | 346 | |||||||||||
Annualized weighted average cost of deposits | Annualized weighted average cost of deposits | 0.13% | 0.24% | Annualized weighted average cost of deposits | 0.93% | 0.10% |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||
Net new assets3 | $ | 134.5 | $ | 51.8 | $ | 310.6 | $ | 109.3 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
Net new assets4 | $ | 64.8 | $ | 134.5 | $ | 259.7 | $ | 310.6 |
$ in billions | $ in billions | At September 30, 2021 | At December 31, 2020 | $ in billions | At September 30, 2022 | At December 31, 2021 | ||||||||||||||||
Advisor-led client assets1 | Advisor-led client assets1 | $ | 3,647 | $ | 3,167 | Advisor-led client assets1 | $ | 3,305 | $ | 3,886 | ||||||||||||
Fee-based client assets2 | Fee-based client assets2 | $ | 1,752 | $ | 1,472 | Fee-based client assets2 | $ | 1,628 | $ | 1,839 | ||||||||||||
Fee-based client assets as a percentage of advisor-led client assets | Fee-based client assets as a percentage of advisor-led client assets | 48% | 46% | Fee-based client assets as a percentage of advisor-led client assets | 49% | 47% |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||
Fee-based asset flows3 | Fee-based asset flows3 | $ | 70.6 | $ | 23.8 | $ | 141.5 | $ | 53.3 | Fee-based asset flows3 | $ | 16.7 | $ | 70.6 | $ | 142.4 | $ | 141.5 |
$ in billions | $ in billions | At September 30, 2021 | At December 31, 2020 | $ in billions | At September 30, 2022 | At December 31, 2021 | ||||||||||||||||
Self-directed assets1 | Self-directed assets1 | $ | 982 | $ | 832 | Self-directed assets1 | $ | 829 | $ | 1,103 | ||||||||||||
Self-directed households (in millions)2 | Self-directed households (in millions)2 | 7.4 | 6.7 | Self-directed households (in millions)2 | 7.8 | 7.4 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||
Daily average revenue trades (“DARTs”) (in thousands)3 | 959 | 6 | 1,200 | 6 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
Daily average revenue trades (“DARTs”) (in thousands)3 | 805 | 959 | 900 | 1,200 |
12 | September |
Management’s Discussion and Analysis |
$ in billions | At September 30, 2021 | At December 31, 2020 | |||||||||
Workplace unvested assets2 | $ | 495 | $ | 435 | |||||||
Number of participants (in millions)3 | 5.3 | 4.9 |
$ in billions | At September 30, 2022 | At December 31, 2021 | |||||||||
Stock plan unvested assets2 | $ | 312 | $ | 509 | |||||||
Stock plan participants (in millions)3 | 6.2 | 5.6 |
$ in billions | $ in billions | At June 30, 2021 | Inflows1 | Outflows | Market Impact | At September 30, 2021 | $ in billions | At June 30, 2022 | Inflows | Outflows | Market Impact | At September 30, 2022 | ||||||||||||||||||||||||||||
Separately managed2 | $ | 407 | $ | 51 | $ | (4) | $ | 14 | $ | 468 | ||||||||||||||||||||||||||||||
Separately managed1 | Separately managed1 | $ | 556 | $ | 14 | $ | (6) | $ | (53) | $ | 511 | |||||||||||||||||||||||||||||
Unified managed | Unified managed | 436 | 27 | (18) | (6) | 439 | Unified managed | 396 | 18 | (12) | (23) | 379 | ||||||||||||||||||||||||||||
Advisor | Advisor | 201 | 11 | (9) | (2) | 201 | Advisor | 172 | 7 | (9) | (7) | 163 | ||||||||||||||||||||||||||||
Portfolio manager | Portfolio manager | 590 | 29 | (16) | (7) | 596 | Portfolio manager | 546 | 22 | (18) | (24) | 526 | ||||||||||||||||||||||||||||
Subtotal | Subtotal | $ | 1,634 | $ | 118 | $ | (47) | $ | (1) | $ | 1,704 | Subtotal | $ | 1,670 | $ | 61 | $ | (45) | $ | (107) | $ | 1,579 | ||||||||||||||||||
Cash management | Cash management | 46 | 9 | (7) | — | 48 | Cash management | 47 | 10 | (8) | — | 49 | ||||||||||||||||||||||||||||
Total fee-based client assets | Total fee-based client assets | $ | 1,680 | $ | 127 | $ | (54) | $ | (1) | $ | 1,752 | Total fee-based client assets | $ | 1,717 | $ | 71 | $ | (53) | $ | (107) | $ | 1,628 |
$ in billions | $ in billions | At June 30, 2020 | Inflows | Outflows | Market Impact | At September 30, 2020 | $ in billions | At June 30, 2021 | Inflows | Outflows | Market Impact | At September 30, 2021 | ||||||||||||||||||||||
Separately managed2 | $ | 313 | $ | 19 | $ | (4) | $ | 14 | $ | 342 | ||||||||||||||||||||||||
Separately managed1 | Separately managed1 | $ | 407 | $ | 51 | $ | (4) | $ | 14 | $ | 468 | |||||||||||||||||||||||
Unified managed | Unified managed | 305 | 16 | (12) | 18 | 327 | Unified managed | 436 | 27 | (18) | (6) | 439 | ||||||||||||||||||||||
Advisor | Advisor | 149 | 8 | (8) | 9 | 158 | Advisor | 201 | 11 | (9) | (2) | 201 | ||||||||||||||||||||||
Portfolio manager | Portfolio manager | 431 | 21 | (16) | 23 | 459 | Portfolio manager | 590 | 29 | (16) | (7) | 596 | ||||||||||||||||||||||
Subtotal | Subtotal | $ | 1,198 | $ | 64 | $ | (40) | $ | 64 | $ | 1,286 | Subtotal | $ | 1,634 | $ | 118 | $ | (47) | $ | (1) | $ | 1,704 | ||||||||||||
Cash management | Cash management | 38 | 12 | (3) | — | 47 | Cash management | 46 | 9 | (7) | — | 48 | ||||||||||||||||||||||
Total fee-based client assets | Total fee-based client assets | $ | 1,236 | $ | 76 | $ | (43) | $ | 64 | $ | 1,333 | Total fee-based client assets | $ | 1,680 | $ | 127 | $ | (54) | $ | (1) | $ | 1,752 |
$ in billions | At December 31, 2021 | Inflows2 | Outflows | Market Impact | At September 30, 2022 | |||||||||||||||
Separately managed1 | $ | 479 | $ | 126 | $ | (19) | $ | (75) | $ | 511 | ||||||||||
Unified managed | 467 | 58 | (37) | (109) | 379 | |||||||||||||||
Advisor | 211 | 22 | (27) | (43) | 163 | |||||||||||||||
Portfolio manager | 636 | 71 | (52) | (129) | 526 | |||||||||||||||
Subtotal | $ | 1,793 | $ | 277 | $ | (135) | $ | (356) | $ | 1,579 | ||||||||||
Cash management | 46 | 28 | (25) | — | 49 | |||||||||||||||
Total fee-based client assets | $ | 1,839 | $ | 305 | $ | (160) | $ | (356) | $ | 1,628 |
September | 13 |
Management’s Discussion and Analysis |
$ in billions | At December 31, 2020 | Inflows1 | Outflows | Market Impact | At September 30, 2021 | |||||||||||||||
Separately managed2 | $ | 359 | $ | 77 | $ | (15) | $ | 47 | $ | 468 | ||||||||||
Unified managed | 379 | 75 | (42) | 27 | 439 | |||||||||||||||
Advisor | 177 | 30 | (23) | 17 | 201 | |||||||||||||||
Portfolio manager | 509 | 84 | (44) | 47 | 596 | |||||||||||||||
Subtotal | $ | 1,424 | $ | 266 | $ | (124) | $ | 138 | $ | 1,704 | ||||||||||
Cash management | 48 | 22 | (22) | — | 48 | |||||||||||||||
Total fee-based client assets | $ | 1,472 | $ | 288 | $ | (146) | $ | 138 | $ | 1,752 |
$ in billions | At December 31, 2019 | Inflows | Outflows | Market Impact | At September 30, 2020 | ||||||||||||
Separately managed2 | $ | 322 | $ | 37 | $ | (14) | $ | (3) | $ | 342 | |||||||
Unified managed | 313 | 43 | (33) | 4 | 327 | ||||||||||||
Advisor | 155 | 22 | (21) | 2 | 158 | ||||||||||||
Portfolio manager | 435 | 62 | (43) | 5 | 459 | ||||||||||||
Subtotal | $ | 1,225 | $ | 164 | $ | (111) | $ | 8 | $ | 1,286 | |||||||
Cash management | 42 | 21 | (16) | — | 47 | ||||||||||||
Total fee-based client assets | $ | 1,267 | $ | 185 | $ | (127) | $ | 8 | $ | 1,333 |
$ in billions | At December 31, 2020 | Inflows | Outflows | Market Impact | At September 30, 2021 | ||||||||||||
Separately managed1 | $ | 359 | $ | 77 | $ | (15) | $ | 47 | $ | 468 | |||||||
Unified managed | 379 | 75 | (42) | 27 | 439 | ||||||||||||
Advisor | 177 | 30 | (23) | 17 | 201 | ||||||||||||
Portfolio manager | 509 | 84 | (44) | 47 | 596 | ||||||||||||
Subtotal | $ | 1,424 | $ | 266 | $ | (124) | $ | 138 | $ | 1,704 | |||||||
Cash management | 48 | 22 | (22) | — | 48 | ||||||||||||
Total fee-based client assets | $ | 1,472 | $ | 288 | $ | (146) | $ | 138 | $ | 1,752 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
Fee rate in bps | Fee rate in bps | 2021 | 2020 | 2021 | 2020 | Fee rate in bps | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Separately managed | Separately managed | 14 | 15 | 14 | 14 | Separately managed | 11 | 14 | 12 | 14 | ||||||||||||||||||
Unified managed | Unified managed | 95 | 99 | 96 | 99 | Unified managed | 94 | 95 | 94 | 96 | ||||||||||||||||||
Advisor | Advisor | 82 | 85 | 82 | 85 | Advisor | 80 | 82 | 81 | 82 | ||||||||||||||||||
Portfolio manager | Portfolio manager | 93 | 94 | 93 | 94 | Portfolio manager | 91 | 93 | 92 | 93 | ||||||||||||||||||
Subtotal | Subtotal | 71 | 73 | 72 | 72 | Subtotal | 65 | 71 | 66 | 72 | ||||||||||||||||||
Cash management | Cash management | 5 | 5 | 5 | 5 | Cash management | 6 | 5 | 6 | 5 | ||||||||||||||||||
Total fee-based client assets | Total fee-based client assets | 70 | 71 | 70 | 70 | Total fee-based client assets | 63 | 70 | 65 | 70 |
14 | September |
Management’s Discussion and Analysis |
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | % Change | $ in millions | 2022 | 2021 | % Change | ||||||||||||||
Revenues | Revenues | Revenues | ||||||||||||||||||||
Asset management and related fees | Asset management and related fees | $ | 1,470 | $ | 795 | 85 | % | Asset management and related fees | $ | 1,269 | $ | 1,470 | (14) | % | ||||||||
Performance-based income and other1 | Performance-based income and other1 | (17) | 261 | (107) | % | Performance-based income and other1 | (101) | (17) | N/M | |||||||||||||
Net revenues | Net revenues | 1,453 | 1,056 | 38 | % | Net revenues | 1,168 | 1,453 | (20) | % | ||||||||||||
Compensation and benefits | Compensation and benefits | 513 | 401 | 28 | % | Compensation and benefits | 495 | 513 | (4) | % | ||||||||||||
Non-compensation expenses | Non-compensation expenses | 570 | 340 | 68 | % | Non-compensation expenses | 557 | 570 | (2) | % | ||||||||||||
Total non-interest expenses | Total non-interest expenses | 1,083 | 741 | 46 | % | Total non-interest expenses | 1,052 | 1,083 | (3) | % | ||||||||||||
Income before provision for income taxes | Income before provision for income taxes | 370 | 315 | 17 | % | Income before provision for income taxes | 116 | 370 | (69) | % | ||||||||||||
Provision for income taxes | Provision for income taxes | 64 | 72 | (11) | % | Provision for income taxes | 26 | 64 | (59) | % | ||||||||||||
Net income | Net income | 306 | 243 | 26 | % | Net income | 90 | 306 | (71) | % | ||||||||||||
Net income (loss) applicable to noncontrolling interests | Net income (loss) applicable to noncontrolling interests | (14) | 18 | (178) | % | Net income (loss) applicable to noncontrolling interests | (17) | (14) | (21) | % | ||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | $ | 320 | $ | 225 | 42 | % | Net income applicable to Morgan Stanley | $ | 107 | $ | 320 | (67) | % |
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | % Change | $ in millions | 2022 | 2021 | % Change | ||||||||||||||
Revenues | Revenues | Revenues | ||||||||||||||||||||
Asset management and related fees | Asset management and related fees | $ | 3,991 | $ | 2,144 | 86 | % | Asset management and related fees | $ | 3,961 | $ | 3,991 | (1) | % | ||||||||
Performance-based income and other1 | Performance-based income and other1 | 478 | 490 | (2) | % | Performance-based income and other1 | (47) | 478 | (110) | % | ||||||||||||
Net revenues | Net revenues | 4,469 | 2,634 | 70 | % | Net revenues | 3,914 | 4,469 | (12) | % | ||||||||||||
Compensation and benefits | Compensation and benefits | 1,742 | 1,012 | 72 | % | Compensation and benefits | 1,645 | 1,742 | (6) | % | ||||||||||||
Non-compensation expenses | Non-compensation expenses | 1,557 | 948 | 64 | % | Non-compensation expenses | 1,676 | 1,557 | 8 | % | ||||||||||||
Total non-interest expenses | Total non-interest expenses | 3,299 | 1,960 | 68 | % | Total non-interest expenses | 3,321 | 3,299 | 1 | % | ||||||||||||
Income before provision for income taxes | Income before provision for income taxes | 1,170 | 674 | 74 | % | Income before provision for income taxes | 593 | 1,170 | (49) | % | ||||||||||||
Provision for income taxes | Provision for income taxes | 253 | 136 | 86 | % | Provision for income taxes | 121 | 253 | (52) | % | ||||||||||||
Net income | Net income | 917 | 538 | 70 | % | Net income | 472 | 917 | (49) | % | ||||||||||||
Net income (loss) applicable to noncontrolling interests | Net income (loss) applicable to noncontrolling interests | (19) | 81 | (123) | % | Net income (loss) applicable to noncontrolling interests | (26) | (19) | (37) | % | ||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | $ | 936 | $ | 457 | 105 | % | Net income applicable to Morgan Stanley | $ | 498 | $ | 936 | (47) | % |
September | 15 |
Management’s Discussion and Analysis |
$ in billions | Equity | Fixed Income | Alternatives and Solutions | Long-Term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||
June 30, 2022 | $ | 265 | $ | 181 | $ | 415 | $ | 861 | $ | 490 | $ | 1,351 | ||||||||
Inflows | 10 | 13 | 24 | 47 | 572 | 619 | ||||||||||||||
Outflows | (14) | (17) | (15) | (46) | (602) | (648) | ||||||||||||||
Market Impact | (9) | (3) | (15) | (27) | (2) | (29) | ||||||||||||||
Other | (3) | (3) | (4) | (10) | (4) | (14) | ||||||||||||||
September 30, 2022 | $ | 249 | $ | 171 | $ | 405 | $ | 825 | $ | 454 | $ | 1,279 |
$ in billions | $ in billions | Equity | Fixed income | Alternatives and Solutions | Long-term AUM Subtotal | Liquidity and Overlay Services | Total | $ in billions | Equity | Fixed Income | Alternatives and Solutions | Long-Term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||||||||||||||
June 30, 2021 | June 30, 2021 | $ | 404 | $ | 207 | $ | 445 | $ | 1,056 | $ | 468 | $ | 1,524 | June 30, 2021 | $ | 404 | $ | 207 | $ | 445 | $ | 1,056 | $ | 468 | $ | 1,524 | ||||||||||||||
Inflows | Inflows | 18 | 17 | 24 | 59 | 462 | 521 | Inflows | 18 | 17 | 24 | 59 | 462 | 521 | ||||||||||||||||||||||||||
Outflows | Outflows | (19) | (16) | (23) | (58) | (448) | (506) | Outflows | (19) | (16) | (23) | (58) | (448) | (506) | ||||||||||||||||||||||||||
Market Impact | Market Impact | (12) | — | — | (12) | — | (12) | Market Impact | (12) | — | — | (12) | — | (12) | ||||||||||||||||||||||||||
Other | Other | — | (2) | (3) | (5) | — | (5) | Other | — | (2) | (3) | (5) | — | (5) | ||||||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | $ | 391 | $ | 206 | $ | 443 | $ | 1,040 | $ | 482 | $ | 1,522 | September 30, 2021 | $ | 391 | $ | 206 | $ | 443 | $ | 1,040 | $ | 482 | $ | 1,522 |
$ in billions | $ in billions | Equity | Fixed income | Alternatives and Solutions | Long-term AUM Subtotal | Liquidity and Overlay Services | Total | $ in billions | Equity | Fixed Income | Alternatives and Solutions | Long-Term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||||||||||||||
June 30, 2020 | $ | 168 | $ | 84 | $ | 145 | $ | 397 | $ | 268 | $ | 665 | ||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2021 | $ | 395 | $ | 207 | $ | 466 | $ | 1,068 | $ | 497 | $ | 1,565 | |||||||||||||||||||||||||||
Inflows | Inflows | 24 | 8 | 6 | 38 | 319 | 357 | Inflows | 42 | 50 | 74 | 166 | 1,675 | 1,841 | ||||||||||||||||||||||||||
Outflows | Outflows | (14) | (5) | (7) | (26) | (317) | (343) | Outflows | (60) | (59) | (60) | (179) | (1,702) | (1,881) | ||||||||||||||||||||||||||
Market Impact | Market Impact | 23 | 1 | 4 | 28 | — | 28 | Market Impact | (117) | (19) | (67) | (203) | (11) | (214) | ||||||||||||||||||||||||||
Other | Other | 1 | 4 | 2 | 7 | 1 | 8 | Other | (11) | (8) | (8) | (27) | (5) | (32) | ||||||||||||||||||||||||||
September 30, 2020 | $ | 202 | $ | 92 | $ | 150 | $ | 444 | $ | 271 | $ | 715 | ||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | $ | 249 | $ | 171 | $ | 405 | $ | 825 | $ | 454 | $ | 1,279 |
$ in billions | $ in billions | Equity | Fixed income | Alternatives and Solutions | Long-term AUM Subtotal | Liquidity and Overlay Services | Total | $ in billions | Equity | Fixed Income | Alternatives and Solutions | Long-Term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | $ | 242 | $ | 98 | $ | 153 | $ | 493 | $ | 288 | $ | 781 | December 31, 2020 | $ | 242 | $ | 98 | $ | 153 | $ | 493 | $ | 288 | $ | 781 | ||||||||||||||
Inflows | Inflows | 73 | 49 | 68 | 190 | 1,375 | 1,565 | Inflows | 73 | 49 | 68 | 190 | 1,375 | 1,565 | ||||||||||||||||||||||||||
Outflows | Outflows | (63) | (40) | (53) | (156) | (1,300) | (1,456) | Outflows | (63) | (40) | (53) | (156) | (1,300) | (1,456) | ||||||||||||||||||||||||||
Market Impact | Market Impact | 23 | 1 | 29 | 53 | 4 | 57 | Market Impact | 23 | 1 | 29 | 53 | 4 | 57 | ||||||||||||||||||||||||||
Acquired1 | Acquired1 | 119 | 103 | 251 | 473 | 116 | 589 | Acquired1 | 119 | 103 | 251 | 473 | 116 | 589 | ||||||||||||||||||||||||||
Other | Other | (3) | (5) | (5) | (13) | (1) | (14) | Other | (3) | (5) | (5) | (13) | (1) | (14) | ||||||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | $ | 391 | $ | 206 | $ | 443 | $ | 1,040 | $ | 482 | $ | 1,522 | September 30, 2021 | $ | 391 | $ | 206 | $ | 443 | $ | 1,040 | $ | 482 | $ | 1,522 |
$ in billions | Equity | Fixed income | Alternatives and Solutions | Long-term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||
December 31, 2019 | $ | 138 | $ | 79 | $ | 139 | $ | 356 | $ | 196 | $ | 552 | ||||||||
Inflows | 56 | 29 | 21 | 106 | 1,174 | 1,280 | ||||||||||||||
Outflows | (35) | (20) | (15) | (70) | (1,100) | (1,170) | ||||||||||||||
Market Impact | 42 | 1 | (1) | 42 | 1 | 43 | ||||||||||||||
Other | 1 | 3 | 6 | 10 | — | 10 | ||||||||||||||
September 30, 2020 | $ | 202 | $ | 92 | $ | 150 | $ | 444 | $ | 271 | $ | 715 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in billions | $ in billions | 2021 | 2020 | 2021 | 2020 | $ in billions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Equity | Equity | $ | 402 | $ | 190 | $ | 350 | $ | 159 | Equity | $ | 269 | $ | 402 | $ | 308 | $ | 350 | ||||||||||
Fixed income | Fixed income | 207 | 90 | 173 | 84 | Fixed income | 179 | 207 | 190 | 173 | ||||||||||||||||||
Alternatives and Solutions | Alternatives and Solutions | 451 | 148 | 356 | 143 | Alternatives and Solutions | 420 | 451 | 436 | 356 | ||||||||||||||||||
Long-term AUM subtotal | Long-term AUM subtotal | 1,060 | 428 | 879 | 386 | Long-term AUM subtotal | 868 | 1,060 | 934 | 879 | ||||||||||||||||||
Liquidity and Overlay Services | Liquidity and Overlay Services | 476 | 267 | 413 | 244 | Liquidity and Overlay Services | 466 | 476 | 469 | 413 | ||||||||||||||||||
Total AUM | Total AUM | $ | 1,536 | $ | 695 | $ | 1,292 | $ | 630 | Total AUM | $ | 1,334 | $ | 1,536 | $ | 1,403 | $ | 1,292 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
Fee rate in bps | 2021 | 2020 | 2021 | 2020 | ||||||||||
Equity | 72 | 76 | 76 | 75 | ||||||||||
Fixed income | 37 | 29 | 38 | 29 | ||||||||||
Alternatives and Solutions | 32 | 58 | 37 | 59 | ||||||||||
Long-term AUM | 48 | 60 | 53 | 59 | ||||||||||
Liquidity and Overlay Services | 5 | 15 | 6 | 16 | ||||||||||
Total AUM | 35 | 43 | 38 | 42 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
Fee rate in bps | 2022 | 2021 | 2022 | 2021 | ||||||||||
Equity | 71 | 72 | 70 | 76 | ||||||||||
Fixed income | 34 | 37 | 36 | 38 | ||||||||||
Alternatives and Solutions | 34 | 32 | 34 | 37 | ||||||||||
Long-term AUM | 46 | 48 | 46 | 53 | ||||||||||
Liquidity and Overlay Services | 13 | 5 | 11 | 6 | ||||||||||
Total AUM | 34 | 35 | 35 | 38 |
16 | September |
Management’s Discussion and Analysis |
$ in billions | $ in billions | At September 30, 2021 | At December 31, 2020 | $ in billions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Investment securities portfolio: | Investment securities portfolio: | Investment securities portfolio: | ||||||||||||||
Investment securities—AFS | Investment securities—AFS | $ | 81.1 | $ | 90.3 | Investment securities—AFS | $ | 65.6 | $ | 81.6 | ||||||
Investment securities—HTM | Investment securities—HTM | 63.0 | 52.6 | Investment securities—HTM | 57.4 | 61.7 | ||||||||||
Total investment securities | Total investment securities | $ | 144.1 | $ | 142.9 | Total investment securities | $ | 123.0 | $ | 143.3 | ||||||
Wealth Management Loans2 | Wealth Management Loans2 | Wealth Management Loans2 | ||||||||||||||
Residential real estate | Residential real estate | $ | 41.4 | $ | 35.2 | Residential real estate | $ | 52.8 | $ | 44.2 | ||||||
Securities-based lending and Other3 | Securities-based lending and Other3 | 79.8 | 62.9 | Securities-based lending and Other3 | 92.9 | 85.0 | ||||||||||
Total, net of ACL | Total, net of ACL | $ | 121.2 | $ | 98.1 | Total, net of ACL | $ | 145.7 | $ | 129.2 | ||||||
Institutional Securities Loans2 | Institutional Securities Loans2 | Institutional Securities Loans2 | ||||||||||||||
Corporate | Corporate | $ | 8.1 | $ | 7.9 | Corporate | $ | 6.7 | $ | 6.5 | ||||||
Secured lending facilities | Secured lending facilities | 29.0 | 27.4 | Secured lending facilities | 36.9 | 33.1 | ||||||||||
Commercial and Residential real estate | Commercial and Residential real estate | 10.1 | 10.1 | Commercial and Residential real estate | 10.2 | 10.4 | ||||||||||
Securities-based lending and Other | Securities-based lending and Other | 6.2 | 5.4 | Securities-based lending and Other | 5.4 | 6.3 | ||||||||||
Total, net of ACL | Total, net of ACL | $ | 53.4 | $ | 50.8 | Total, net of ACL | $ | 59.2 | $ | 56.3 | ||||||
Total Assets | Total Assets | $ | 367.1 | $ | 346.5 | Total Assets | $ | 371.2 | $ | 386.1 | ||||||
Deposits4 | Deposits4 | $ | 326.9 | $ | 309.7 | Deposits4 | $ | 331.9 | $ | 346.2 |
September 2022 Form 10-Q | 17 |
Management’s Discussion and Analysis |
At September 30, 2021 | At September 30, 2022 | |||||||||||||||||||||||||||
$ in millions | $ in millions | IS | WM | IM | Total | $ in millions | IS | WM | IM | Total | ||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 98,346 | $ | 24,880 | $ | 637 | $ | 123,863 | Cash and cash equivalents | $ | 89,524 | $ | 21,911 | $ | 261 | $ | 111,696 | ||||||||||
Trading assets at fair value | Trading assets at fair value | 309,467 | 1,339 | 4,355 | 315,161 | Trading assets at fair value | 284,683 | 1,752 | 4,753 | 291,188 | ||||||||||||||||||
Investment securities | Investment securities | 40,631 | 142,800 | — | 183,431 | Investment securities | 41,503 | 119,766 | — | 161,269 | ||||||||||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | 104,040 | 15,681 | — | 119,721 | Securities purchased under agreements to resell | 100,251 | 10,873 | — | 111,124 | ||||||||||||||||||
Securities borrowed | Securities borrowed | 124,329 | 1,593 | — | 125,922 | Securities borrowed | 135,570 | 908 | — | 136,478 | ||||||||||||||||||
Customer and other receivables | Customer and other receivables | 62,270 | 34,872 | 1,211 | 98,353 | Customer and other receivables | 55,202 | 31,517 | 1,216 | 87,935 | ||||||||||||||||||
Loans1 | Loans1 | 52,117 | 121,237 | 5 | 173,359 | Loans1 | 65,169 | 145,763 | 4 | 210,936 | ||||||||||||||||||
Other assets2 | Other assets2 | 17,052 | 22,232 | 11,382 | 50,666 | Other assets2 | 14,482 | 23,977 | 10,944 | 49,403 | ||||||||||||||||||
Total assets | Total assets | $ | 808,252 | $ | 364,634 | $ | 17,590 | $ | 1,190,476 | Total assets | $ | 786,384 | $ | 356,467 | $ | 17,178 | $ | 1,160,029 |
At December 31, 2020 | ||||||||||||||
$ in millions | IS | WM | IM | Total | ||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 74,281 | $ | 31,275 | $ | 98 | $ | 105,654 | ||||||
Trading assets at fair value | 308,413 | 280 | 4,045 | 312,738 | ||||||||||
Investment securities | 41,630 | 140,524 | — | 182,154 | ||||||||||
Securities purchased under agreements to resell | 84,998 | 31,236 | — | 116,234 | ||||||||||
Securities borrowed | 110,480 | 1,911 | — | 112,391 | ||||||||||
Customer and other receivables | 67,085 | 29,781 | 871 | 97,737 | ||||||||||
Loans1 | 52,449 | 98,130 | 18 | 150,597 | ||||||||||
Other assets2 | 13,986 | 22,458 | 1,913 | 38,357 | ||||||||||
Total assets | $ | 753,322 | $ | 355,595 | $ | 6,945 | $ | 1,115,862 |
At December 31, 2021 | ||||||||||||||
$ in millions | IS | WM | IM | Total | ||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 91,251 | $ | 36,003 | $ | 471 | $ | 127,725 | ||||||
Trading assets at fair value | 288,405 | 1,921 | 4,543 | 294,869 | ||||||||||
Investment securities | 41,407 | 141,591 | — | 182,998 | ||||||||||
Securities purchased under agreements to resell | 112,267 | 7,732 | — | 119,999 | ||||||||||
Securities borrowed | 128,154 | 1,559 | — | 129,713 | ||||||||||
Customer and other receivables | 57,009 | 37,643 | 1,366 | 96,018 | ||||||||||
Loans1 | 58,822 | 129,307 | 5 | 188,134 | ||||||||||
Other assets2 | 14,820 | 22,682 | 11,182 | 48,684 | ||||||||||
Total assets | $ | 792,135 | $ | 378,438 | $ | 17,567 | $ | 1,188,140 |
18 | September 2022 Form 10-Q |
Management’s Discussion and Analysis |
Average Daily Balance Three Months Ended | ||||||||||||||||
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | September 30, 2022 | June 30, 2022 | ||||||||||
Cash deposits with central banks | Cash deposits with central banks | $ | 62,808 | $ | 49,669 | Cash deposits with central banks | $ | 61,447 | $ | 65,144 | ||||||
Unencumbered HQLA Securities1: | Unencumbered HQLA Securities1: | Unencumbered HQLA Securities1: | ||||||||||||||
U.S. government obligations | U.S. government obligations | 138,588 | 136,555 | U.S. government obligations | 132,788 | 123,950 | ||||||||||
U.S. agency and agency mortgage-backed securities | U.S. agency and agency mortgage-backed securities | 107,714 | 99,659 | U.S. agency and agency mortgage-backed securities | 89,279 | 92,825 | ||||||||||
Non-U.S. sovereign obligations2 | Non-U.S. sovereign obligations2 | 28,315 | 39,745 | Non-U.S. sovereign obligations2 | 15,812 | 15,661 | ||||||||||
Other investment grade securities | Other investment grade securities | 632 | 2,053 | Other investment grade securities | 607 | 629 | ||||||||||
Total HQLA1 | Total HQLA1 | $ | 338,057 | $ | 327,681 | Total HQLA1 | $ | 299,933 | $ | 298,209 | ||||||
Cash deposits with banks (non-HQLA) | Cash deposits with banks (non-HQLA) | 8,232 | 10,942 | Cash deposits with banks (non-HQLA) | 8,068 | 8,161 | ||||||||||
Total Liquidity Resources | Total Liquidity Resources | $ | 346,289 | $ | 338,623 | Total Liquidity Resources | $ | 308,001 | $ | 306,370 |
At September 30, 2021 | At December 31, 2020 | Average Daily Balance Three Months Ended | Average Daily Balance Three Months Ended | ||||||||||||||||
$ in millions | $ in millions | September 30, 2021 | $ in millions | September 30, 2022 | June 30, 2022 | ||||||||||||||
Bank legal entities | Bank legal entities | Bank legal entities | |||||||||||||||||
U.S. | U.S. | $ | 168,880 | $ | 178,033 | $ | 173,306 | U.S. | $ | 133,306 | $ | 142,290 | |||||||
Non-U.S. | Non-U.S. | 12,172 | 7,670 | 11,451 | Non-U.S. | 7,607 | 8,712 | ||||||||||||
Total Bank legal entities | Total Bank legal entities | 181,052 | 185,703 | 184,757 | Total Bank legal entities | 140,913 | 151,002 | ||||||||||||
Non-Bank legal entities | Non-Bank legal entities | Non-Bank legal entities | |||||||||||||||||
U.S.: | U.S.: | U.S.: | |||||||||||||||||
Parent Company | Parent Company | 55,918 | 59,468 | 71,622 | Parent Company | 54,189 | 43,158 | ||||||||||||
Non-Parent Company | Non-Parent Company | 53,565 | 33,368 | 45,116 | Non-Parent Company | 55,098 | 55,342 | ||||||||||||
Total U.S. | Total U.S. | 109,483 | 92,836 | 116,738 | Total U.S. | 109,287 | 98,500 | ||||||||||||
Non-U.S. | Non-U.S. | 55,754 | 60,084 | 56,815 | Non-U.S. | 57,801 | 56,868 | ||||||||||||
Total Non-Bank legal entities | Total Non-Bank legal entities | 165,237 | 152,920 | 173,553 | Total Non-Bank legal entities | 167,088 | 155,368 | ||||||||||||
Total Liquidity Resources | Total Liquidity Resources | $ | 346,289 | $ | 338,623 | $ | 358,310 | Total Liquidity Resources | $ | 308,001 | $ | 306,370 |
Average Daily Balance Three Months Ended | Average Daily Balance Three Months Ended | |||||||||||||||
$ in millions | $ in millions | September 30, 2021 | June 30, 2021 | $ in millions | September 30, 2022 | June 30, 2022 | ||||||||||
Eligible HQLA1 | Eligible HQLA1 | Eligible HQLA1 | ||||||||||||||
Cash deposits with central banks | Cash deposits with central banks | $ | 66,288 | $ | 56,430 | Cash deposits with central banks | $ | 57,133 | $ | 59,887 | ||||||
Securities2 | Securities2 | 174,068 | 171,729 | Securities2 | 183,102 | 169,708 | ||||||||||
Total Eligible HQLA1 | Total Eligible HQLA1 | $ | 240,356 | $ | 228,159 | Total Eligible HQLA1 | $ | 240,235 | $ | 229,595 | ||||||
LCR | LCR | 134 | % | 126 | % | LCR | 136 | % | 128 | % |
September 2022 Form 10-Q | 19 |
Management’s Discussion and Analysis |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Securities purchased under agreements to resell and Securities borrowed | Securities purchased under agreements to resell and Securities borrowed | $ | 245,643 | $ | 228,625 | Securities purchased under agreements to resell and Securities borrowed | $ | 247,602 | $ | 249,712 | ||||||
Securities sold under agreements to repurchase and Securities loaned | Securities sold under agreements to repurchase and Securities loaned | $ | 73,120 | $ | 58,318 | Securities sold under agreements to repurchase and Securities loaned | $ | 73,230 | $ | 74,487 | ||||||
Securities received as collateral1 | Securities received as collateral1 | $ | 7,746 | $ | 4,277 | Securities received as collateral1 | $ | 6,853 | $ | 10,504 |
Average Daily Balance Three Months Ended | Average Daily Balance Three Months Ended | |||||||||||||||
$ in millions | $ in millions | September 30, 2021 | December 31, 2020 | $ in millions | September 30, 2022 | December 31, 2021 | ||||||||||
Securities purchased under agreements to resell and Securities borrowed | Securities purchased under agreements to resell and Securities borrowed | $ | 225,388 | $ | 195,376 | Securities purchased under agreements to resell and Securities borrowed | $ | 261,256 | $ | 236,327 | ||||||
Securities sold under agreements to repurchase and Securities loaned | Securities sold under agreements to repurchase and Securities loaned | $ | 69,974 | $ | 54,528 | Securities sold under agreements to repurchase and Securities loaned | $ | 73,487 | $ | 69,565 |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Savings and demand deposits: | Savings and demand deposits: | Savings and demand deposits: | ||||||||||||||
Brokerage sweep deposits1 | Brokerage sweep deposits1 | $ | 273,137 | $ | 232,071 | Brokerage sweep deposits1 | $ | 233,519 | $ | 298,352 | ||||||
Savings and other | Savings and other | 37,708 | 47,150 | Savings and other | 83,610 | 34,395 | ||||||||||
Total Savings and demand deposits | Total Savings and demand deposits | 310,845 | 279,221 | Total Savings and demand deposits | 317,129 | 332,747 | ||||||||||
Time deposits | Time deposits | 18,196 | 31,561 | Time deposits | 20,994 | 14,827 | ||||||||||
Total2 | Total2 | $ | 329,041 | $ | 310,782 | Total2 | $ | 338,123 | $ | 347,574 |
$ in millions | $ in millions | Parent Company | Subsidiaries | Total | $ in millions | Parent Company | Subsidiaries | Total | ||||||||||||||
Original maturities of one year or less | Original maturities of one year or less | $ | — | $ | 4,825 | $ | 4,825 | Original maturities of one year or less | $ | — | $ | 4,062 | $ | 4,062 | ||||||||
Original maturities greater than one year | Original maturities greater than one year | Original maturities greater than one year | ||||||||||||||||||||
2021 | $ | 3,398 | $ | 1,444 | $ | 4,842 | ||||||||||||||||
2022 | 2022 | 9,097 | 7,053 | 16,150 | 2022 | $ | 3,151 | $ | 1,198 | $ | 4,349 | |||||||||||
2023 | 2023 | 17,272 | 5,623 | 22,895 | 2023 | 13,376 | 7,491 | 20,867 | ||||||||||||||
2024 | 2024 | 20,688 | 8,224 | 28,912 | 2024 | 19,224 | 8,798 | 28,022 | ||||||||||||||
2025 | 2025 | 16,754 | 6,579 | 23,333 | 2025 | 21,353 | 7,632 | 28,985 | ||||||||||||||
2026 | 2026 | 21,957 | 4,785 | 26,742 | ||||||||||||||||||
Thereafter | Thereafter | 100,910 | 27,895 | 128,805 | Thereafter | 81,708 | 25,688 | 107,396 | ||||||||||||||
Total | Total | $ | 168,119 | $ | 56,818 | $ | 224,937 | Total | $ | 160,769 | $ | 55,592 | $ | 216,361 | ||||||||
Total Borrowings | Total Borrowings | $ | 168,119 | $ | 61,643 | $ | 229,762 | Total Borrowings | $ | 160,769 | $ | 59,654 | $ | 220,423 | ||||||||
Maturities over next 12 months2 | Maturities over next 12 months2 | $ | 13,899 | Maturities over next 12 months2 | $ | 18,755 |
20 | September 2022 Form 10-Q |
Management’s Discussion and Analysis |
Parent Company | |||||||||||
Short-Term Debt | Long-Term Debt | Rating Outlook | |||||||||
DBRS, Inc. | R-1 (middle) | A (high) | Stable | ||||||||
Fitch Ratings, Inc. | F1 | A | |||||||||
Moody’s Investors Service, Inc. | P-1 | A1 | Stable | ||||||||
Rating and Investment Information, Inc. | a-1 | A | Stable | ||||||||
S&P Global Ratings | A-2 |
MSBNA | |||||||||||
Short-Term Debt | Long-Term Debt | Rating Outlook | |||||||||
Fitch Ratings, Inc. | F1 | A+ | |||||||||
Moody’s Investors Service, Inc. | P-1 | Aa3 | Stable | ||||||||
S&P Global Ratings | A-1 | A+ | Stable |
MSPBNA | |||||||||||
Short-Term Debt | Long-Term Debt | Rating Outlook | |||||||||
Moody’s Investors Service, Inc. | P-1 | Aa3 | Stable | ||||||||
S&P Global Ratings | A-1 | A+ | Stable |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
in millions, except for per share data | in millions, except for per share data | 2021 | 2020 | 2021 | 2020 | in millions, except for per share data | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Number of shares | Number of shares | 36 | — | 98 | 29 | Number of shares | 30 | 36 | 93 | 98 | ||||||||||||||||||
Average price per share | Average price per share | $ | 99.44 | $ | — | $ | 88.60 | $ | 46.01 | Average price per share | $ | 85.79 | $ | 99.44 | $ | 87.50 | $ | 88.60 | ||||||||||
Total | Total | $ | 3,557 | $ | — | $ | 8,631 | $ | 1,347 | Total | $ | 2,555 | $ | 3,557 | $ | 8,165 | $ | 8,631 |
Announcement date | October 14, | ||||
Amount per share | $ | ||||
Date to be paid | November 15, | ||||
Shareholders of record as of | October |
September 2022 Form 10-Q | 21 |
Management’s Discussion and Analysis |
At September 30, 2021 and December 31, 2020 | At September 30, 2022 and December 31, 2021 | ||||||||||||||||||||||||
Standardized | Advanced | Standardized | Advanced | ||||||||||||||||||||||
Capital buffers | Capital buffers | Capital buffers | |||||||||||||||||||||||
Capital conservation buffer | Capital conservation buffer | — | 2.5% | Capital conservation buffer | — | 2.5% | |||||||||||||||||||
SCB1 | SCB1 | 5.7% | N/A | SCB1 | 5.7% | N/A | |||||||||||||||||||
G-SIB capital surcharge2 | G-SIB capital surcharge2 | 3.0% | G-SIB capital surcharge2 | 3.0% | |||||||||||||||||||||
CCyB3 | CCyB3 | 0% | CCyB3 | 0% | |||||||||||||||||||||
Capital buffer requirement4 | 8.7% | 5.5% | |||||||||||||||||||||||
At September 30, 2021 and December 31, 2020 | |||||||||||||||||||||||||
Regulatory Minimum | Standardized | Advanced | |||||||||||||||||||||||
Required ratios5 | |||||||||||||||||||||||||
Common Equity Tier 1 capital ratio | 4.5 | % | 13.2% | 10.0% | |||||||||||||||||||||
Tier 1 capital ratio | 6.0 | % | 14.7% | 11.5% | |||||||||||||||||||||
Total capital ratio | 8.0 | % | 16.7% | 13.5% | |||||||||||||||||||||
Capital buffer requirement | Capital buffer requirement | 8.7% | 5.5% |
Regulatory Minimum | At September 30, 2022 and December 31, 2021 | ||||||||||
Standardized | Advanced | ||||||||||
Required ratios1 | |||||||||||
Common Equity Tier 1 capital ratio | 4.5 | % | 13.2% | 10.0% | |||||||
Tier 1 capital ratio | 6.0 | % | 14.7% | 11.5% | |||||||
Total capital ratio | 8.0 | % | 16.7% | 13.5% |
$ in millions | $ in millions | Required Ratio1 | At September 30, 2021 | At December 31, 2020 | $ in millions | Required Ratio1 | At September 30, 2022 | At December 31, 2021 | |||||||||||||||||||||||||||||||||||
Risk-based capital— Standardized | Risk-based capital— Standardized | Risk-based capital— Standardized | |||||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 capital | Common Equity Tier 1 capital | $ | 75,785 | $ | 78,650 | Common Equity Tier 1 capital | $ | 67,933 | $ | 75,742 | |||||||||||||||||||||||||||||||||
Tier 1 capital | Tier 1 capital | 83,435 | 88,079 | Tier 1 capital | 76,428 | 83,348 | |||||||||||||||||||||||||||||||||||||
Total capital | Total capital | 94,062 | 97,213 | Total capital | 86,139 | 93,166 | |||||||||||||||||||||||||||||||||||||
Total RWA | Total RWA | 473,020 | 453,106 | Total RWA | 457,911 | 471,921 | |||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 capital ratio | Common Equity Tier 1 capital ratio | 13.2 | % | 16.0 | % | 17.4 | % | Common Equity Tier 1 capital ratio | 13.2 | % | 14.8 | % | 16.0 | % | |||||||||||||||||||||||||||||
Tier 1 capital ratio | Tier 1 capital ratio | 14.7 | % | 17.6 | % | 19.4 | % | Tier 1 capital ratio | 14.7 | % | 16.7 | % | 17.7 | % | |||||||||||||||||||||||||||||
Total capital ratio | Total capital ratio | 16.7 | % | 19.9 | % | 21.5 | % | Total capital ratio | 16.7 | % | 18.8 | % | 19.7 | % |
$ in millions | Required Ratio1 | At September 30, 2021 | At December 31, 2020 | |||||||||||
Risk-based capital— Advanced | ||||||||||||||
Common Equity Tier 1 capital | $ | 75,785 | $ | 78,650 | ||||||||||
Tier 1 capital | 83,435 | 88,079 | ||||||||||||
Total capital | 93,813 | 96,994 | ||||||||||||
Total RWA | 441,214 | 445,151 | ||||||||||||
Common Equity Tier 1 capital ratio | 10.0 | % | 17.2 | % | 17.7 | % | ||||||||
Tier 1 capital ratio | 11.5 | % | 18.9 | % | 19.8 | % | ||||||||
Total capital ratio | 13.5 | % | 21.3 | % | 21.8 | % | ||||||||
$ in millions | Required Ratio1 | At September 30, 2021 | At December 31, 2020 | |||||||||||
Leverage-based capital | ||||||||||||||
Adjusted average assets2 | $ | 1,145,682 | $ | 1,053,510 | ||||||||||
Tier 1 leverage ratio | 4.0 | % | 7.3 | % | 8.4 | % | ||||||||
Supplementary leverage exposure3,4 | $ | 1,459,466 | $ | 1,192,506 | ||||||||||
SLR4 | 5.0 | % | 5.7 | % | 7.4 | % |
22 | September 2022 Form 10-Q |
Management’s Discussion and Analysis |
$ in millions | Required Ratio1 | At September 30, 2022 | At December 31, 2021 | ||||||||
Risk-based capital— Advanced | |||||||||||
Common Equity Tier 1 capital | $ | 67,933 | $ | 75,742 | |||||||
Tier 1 capital | 76,428 | 83,348 | |||||||||
Total capital | 85,763 | 92,927 | |||||||||
Total RWA | 447,792 | 435,749 | |||||||||
Common Equity Tier 1 capital ratio | 10.0 | % | 15.2 | % | 17.4 | % | |||||
Tier 1 capital ratio | 11.5 | % | 17.1 | % | 19.1 | % | |||||
Total capital ratio | 13.5 | % | 19.2 | % | 21.3 | % | |||||
$ in millions | Required Ratio1 | At September 30, 2022 | At December 31, 2021 | ||||||||
Leverage-based capital | |||||||||||
Adjusted average assets2 | $ | 1,154,411 | $ | 1,169,939 | |||||||
Tier 1 leverage ratio | 4.0 | % | 6.6 | % | 7.1 | % | |||||
Supplementary leverage exposure3 | $ | 1,406,345 | $ | 1,476,962 | |||||||
SLR | 5.0 | % | 5.4 | % | 5.6 | % |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | Change | $ in millions | At September 30, 2022 | At December 31, 2021 | Change | |||||||||||||||||
Common Equity Tier 1 capital | Common Equity Tier 1 capital | Common Equity Tier 1 capital | |||||||||||||||||||||||
Common stock and surplus | Common stock and surplus | $ | 13,755 | $ | 15,799 | $ | (2,044) | Common stock and surplus | $ | 3,964 | $ | 11,361 | $ | (7,397) | |||||||||||
Retained earnings | Retained earnings | 87,356 | 78,978 | 8,378 | Retained earnings | 94,240 | 89,679 | 4,561 | |||||||||||||||||
AOCI | AOCI | (2,701) | (1,962) | (739) | AOCI | (5,758) | (3,102) | (2,656) | |||||||||||||||||
Regulatory adjustments and deductions: | Regulatory adjustments and deductions: | Regulatory adjustments and deductions: | |||||||||||||||||||||||
Net goodwill | Net goodwill | (16,678) | (11,527) | (5,151) | Net goodwill | (16,456) | (16,641) | 185 | |||||||||||||||||
Net intangible assets | Net intangible assets | (6,878) | (4,165) | (2,713) | Net intangible assets | (6,290) | (6,704) | 414 | |||||||||||||||||
Other adjustments and deductions1 | Other adjustments and deductions1 | 931 | 1,527 | (596) | Other adjustments and deductions1 | (1,767) | 1,149 | (2,916) | |||||||||||||||||
Total Common Equity Tier 1 capital | Total Common Equity Tier 1 capital | $ | 75,785 | $ | 78,650 | $ | (2,865) | Total Common Equity Tier 1 capital | $ | 67,933 | $ | 75,742 | $ | (7,809) | |||||||||||
Additional Tier 1 capital | Additional Tier 1 capital | Additional Tier 1 capital | |||||||||||||||||||||||
Preferred stock | Preferred stock | $ | 7,750 | $ | 9,250 | $ | (1,500) | Preferred stock | $ | 8,750 | $ | 7,750 | $ | 1,000 | |||||||||||
Noncontrolling interests | Noncontrolling interests | 534 | 619 | (85) | Noncontrolling interests | 542 | 562 | (20) | |||||||||||||||||
Additional Tier 1 capital | Additional Tier 1 capital | $ | 8,284 | $ | 9,869 | $ | (1,585) | Additional Tier 1 capital | $ | 9,292 | $ | 8,312 | $ | 980 | |||||||||||
Deduction for investments in covered funds | Deduction for investments in covered funds | (634) | (440) | (194) | Deduction for investments in covered funds | (797) | (706) | (91) | |||||||||||||||||
Total Tier 1 capital | Total Tier 1 capital | $ | 83,435 | $ | 88,079 | $ | (4,644) | Total Tier 1 capital | $ | 76,428 | $ | 83,348 | $ | (6,920) | |||||||||||
Standardized Tier 2 capital | Standardized Tier 2 capital | Standardized Tier 2 capital | |||||||||||||||||||||||
Subordinated debt | Subordinated debt | $ | 9,522 | $ | 7,737 | $ | 1,785 | Subordinated debt | $ | 8,161 | $ | 8,609 | $ | (448) | |||||||||||
Eligible ACL | Eligible ACL | 1,182 | 1,265 | (83) | Eligible ACL | 1,505 | 1,155 | 350 | |||||||||||||||||
Other adjustments and deductions | Other adjustments and deductions | (77) | 132 | (209) | Other adjustments and deductions | 45 | 54 | (9) | |||||||||||||||||
Total Standardized Tier 2 capital | Total Standardized Tier 2 capital | $ | 10,627 | $ | 9,134 | $ | 1,493 | Total Standardized Tier 2 capital | $ | 9,711 | $ | 9,818 | $ | (107) | |||||||||||
Total Standardized capital | Total Standardized capital | $ | 94,062 | $ | 97,213 | $ | (3,151) | Total Standardized capital | $ | 86,139 | $ | 93,166 | $ | (7,027) | |||||||||||
Advanced Tier 2 capital | Advanced Tier 2 capital | Advanced Tier 2 capital | |||||||||||||||||||||||
Subordinated debt | Subordinated debt | $ | 9,522 | $ | 7,737 | $ | 1,785 | Subordinated debt | $ | 8,161 | $ | 8,609 | $ | (448) | |||||||||||
Eligible credit reserves | Eligible credit reserves | 933 | 1,046 | (113) | Eligible credit reserves | 1,129 | 916 | 213 | |||||||||||||||||
Other adjustments and deductions | Other adjustments and deductions | (77) | 132 | (209) | Other adjustments and deductions | 45 | 54 | (9) | |||||||||||||||||
Total Advanced Tier 2 capital | Total Advanced Tier 2 capital | $ | 10,378 | $ | 8,915 | $ | 1,463 | Total Advanced Tier 2 capital | $ | 9,335 | $ | 9,579 | $ | (244) | |||||||||||
Total Advanced capital | Total Advanced capital | $ | 93,813 | $ | 96,994 | $ | (3,181) | Total Advanced capital | $ | 85,763 | $ | 92,927 | $ | (7,164) |
Nine Months Ended September 30, 2021 | ||||||||
$ in millions | Standardized | Advanced | ||||||
Credit risk RWA | ||||||||
Balance at December 31, 2020 | $ | 387,066 | $ | 284,930 | ||||
Change related to the following items: | ||||||||
Derivatives | 10,529 | (14,533) | ||||||
Securities financing transactions | 5,914 | 947 | ||||||
Investment securities | (2,563) | 357 | ||||||
Commitments, guarantees and loans | 639 | 4,260 | ||||||
Equity investments | 2,117 | 2,196 | ||||||
Other credit risk1 | 6,884 | 6,395 | ||||||
Total change in credit risk RWA | $ | 23,520 | $ | (378) | ||||
Balance at September 30, 2021 | $ | 410,586 | $ | 284,552 | ||||
Market risk RWA | ||||||||
Balance at December 31, 2020 | $ | 66,040 | $ | 66,040 | ||||
Change related to the following items: | ||||||||
Regulatory VaR | (6,747) | (6,747) | ||||||
Regulatory stressed VaR | (1,908) | (1,908) | ||||||
Incremental risk charge | 3,032 | 3,032 | ||||||
Comprehensive risk measure | (125) | (125) | ||||||
Specific risk | 2,142 | 2,142 | ||||||
Total change in market risk RWA | $ | (3,606) | $ | (3,606) | ||||
Balance at September 30, 2021 | $ | 62,434 | $ | 62,434 | ||||
Operational risk RWA | ||||||||
Balance at December 31, 2020 | N/A | $ | 94,181 | |||||
Change in operational risk RWA | N/A | 47 | ||||||
Balance at September 30, 2021 | N/A | $ | 94,228 | |||||
Total RWA | $ | 473,020 | $ | 441,214 |
September | 23 |
Management’s Discussion and Analysis |
Nine Months Ended September 30, 2022 | ||||||||
$ in millions | Standardized | Advanced | ||||||
Credit risk RWA | ||||||||
Balance at December 31, 2021 | $ | 416,502 | $ | 285,247 | ||||
Change related to the following items: | ||||||||
Derivatives | (6,624) | 10,507 | ||||||
Securities financing transactions | (8,841) | 1,838 | ||||||
Investment securities | (2,842) | (7,456) | ||||||
Commitments, guarantees and loans | 11,446 | 5,704 | ||||||
Equity investments | (4,054) | (4,256) | ||||||
Other credit risk | 2,817 | 4,125 | ||||||
Total change in credit risk RWA | $ | (8,098) | $ | 10,462 | ||||
Balance at September 30, 2022 | $ | 408,404 | $ | 295,709 | ||||
Market risk RWA | ||||||||
Balance at December 31, 2021 | $ | 55,419 | $ | 55,419 | ||||
Change related to the following items: | ||||||||
Regulatory VaR | 3,434 | 3,434 | ||||||
Regulatory stressed VaR | 242 | 242 | ||||||
Incremental risk charge | (5,119) | (5,119) | ||||||
Comprehensive risk measure | (391) | (436) | ||||||
Specific risk | (4,078) | (4,078) | ||||||
Total change in market risk RWA | $ | (5,912) | $ | (5,957) | ||||
Balance at September 30, 2022 | $ | 49,507 | $ | 49,462 | ||||
Operational risk RWA | ||||||||
Balance at December 31, 2021 | N/A | $ | 95,083 | |||||
Change in operational risk RWA | N/A | 7,538 | ||||||
Balance at September 30, 2022 | N/A | $ | 102,621 | |||||
Total RWA | $ | 457,911 | $ | 447,792 |
Actual Amount/Ratio | Actual Amount/Ratio | ||||||||||||||||||||||||||||||
$ in millions | $ in millions | Regulatory Minimum | Required Ratio1 | At September 30, 2021 | At December 31, 2020 | $ in millions | Regulatory Minimum | Required Ratio1 | At September 30, 2022 | At December 31, 2021 | |||||||||||||||||||||
External TLAC2 | External TLAC2 | $ | 234,639 | $ | 216,129 | External TLAC2 | $ | 235,864 | $ | 235,681 | |||||||||||||||||||||
External TLAC as a % of RWA | External TLAC as a % of RWA | 18.0 | % | 21.5 | % | 49.6 | % | 47.7 | % | External TLAC as a % of RWA | 18.0 | % | 21.5 | % | 51.5 | % | 49.9 | % | |||||||||||||
External TLAC as a % of leverage exposure | External TLAC as a % of leverage exposure | 7.5 | % | 9.5 | % | 16.1 | % | 18.1 | % | External TLAC as a % of leverage exposure | 7.5 | % | 9.5 | % | 16.8 | % | 16.0 | % | |||||||||||||
Eligible LTD3 | Eligible LTD3 | $ | 142,978 | $ | 120,561 | Eligible LTD3 | $ | 149,694 | $ | 144,659 | |||||||||||||||||||||
Eligible LTD as a % of RWA | Eligible LTD as a % of RWA | 9.0 | % | 9.0 | % | 30.2 | % | 26.6 | % | Eligible LTD as a % of RWA | 9.0 | % | 9.0 | % | 32.7 | % | 30.7 | % | |||||||||||||
Eligible LTD as a % of leverage exposure | Eligible LTD as a % of leverage exposure | 4.5 | % | 4.5 | % | 9.8 | % | 10.1 | % | Eligible LTD as a % of leverage exposure | 4.5 | % | 4.5 | % | 10.6 | % | 9.8 | % |
24 | September 2022 Form 10-Q |
Management’s Discussion and Analysis |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in billions | $ in billions | 2021 | 2020 | 2021 | 2020 | $ in billions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Institutional Securities | Institutional Securities | $ | 43.5 | $ | 42.8 | $ | 43.5 | $ | 42.8 | Institutional Securities | $ | 48.8 | $ | 43.5 | $ | 48.8 | $ | 43.5 | ||||||||||
Wealth Management2 | 28.6 | 18.2 | 28.6 | 18.2 | ||||||||||||||||||||||||
Investment Management3 | 10.7 | 2.6 | 8.2 | 2.6 | ||||||||||||||||||||||||
Wealth Management | Wealth Management | 31.0 | 28.6 | 31.0 | 28.6 | |||||||||||||||||||||||
Investment Management2 | Investment Management2 | 10.6 | 10.7 | 10.6 | 8.2 | |||||||||||||||||||||||
Parent | Parent | 15.8 | 15.1 | 16.6 | 13.3 | Parent | 2.5 | 15.8 | 4.3 | 16.6 | ||||||||||||||||||
Total | Total | $ | 98.6 | $ | 78.7 | $ | 96.9 | $ | 76.9 | Total | $ | 92.9 | $ | 98.6 | $ | 94.7 | $ | 96.9 |
September | 25 |
Management’s Discussion and Analysis |
26 | September |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||
September 30, 2021 | September 30, 2022 | |||||||||||||||||||||||||||
$ in millions | $ in millions | Period End | Average | High2 | Low2 | $ in millions | Period End | Average | High1 | Low1 | ||||||||||||||||||
Interest rate and credit spread | Interest rate and credit spread | $ | 27 | $ | 28 | $ | 33 | $ | 23 | Interest rate and credit spread | $ | 36 | $ | 34 | $ | 38 | $ | 30 | ||||||||||
Equity price | Equity price | 28 | 24 | 32 | 20 | Equity price | 22 | 24 | 31 | 19 | ||||||||||||||||||
Foreign exchange rate | Foreign exchange rate | 7 | 8 | 11 | 6 | Foreign exchange rate | 9 | 8 | 12 | 5 | ||||||||||||||||||
Commodity price | Commodity price | 19 | 12 | 19 | 9 | Commodity price | 26 | 30 | 36 | 24 | ||||||||||||||||||
Less: Diversification benefit1 | (34) | (29) | N/A | |||||||||||||||||||||||||
Less: Diversification benefit2 | Less: Diversification benefit2 | (37) | (39) | N/A | ||||||||||||||||||||||||
Primary Risk Categories | Primary Risk Categories | $ | 47 | $ | 43 | $ | 53 | $ | 38 | Primary Risk Categories | $ | 56 | $ | 57 | $ | 65 | $ | 49 | ||||||||||
Credit Portfolio | Credit Portfolio | 12 | 12 | 13 | 11 | Credit Portfolio | 16 | 16 | 18 | 15 | ||||||||||||||||||
Less: Diversification benefit1 | (11) | (10) | N/A | |||||||||||||||||||||||||
Less: Diversification benefit2 | Less: Diversification benefit2 | (11) | (12) | N/A | ||||||||||||||||||||||||
Total Management VaR | Total Management VaR | $ | 48 | $ | 45 | $ | 56 | $ | 41 | Total Management VaR | $ | 61 | $ | 61 | $ | 74 | $ | 50 |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||
June 30, 2021 | June 30, 2022 | |||||||||||||||||||||||||||
$ in millions | $ in millions | Period End | Average | High2 | Low2 | $ in millions | Period End | Average | High1 | Low1 | ||||||||||||||||||
Interest rate and credit spread | Interest rate and credit spread | $ | 29 | $ | 31 | $ | 39 | $ | 28 | Interest rate and credit spread | $ | 33 | $ | 30 | $ | 43 | $ | 24 | ||||||||||
Equity price | Equity price | 21 | 24 | 32 | 19 | Equity price | 24 | 24 | 28 | 19 | ||||||||||||||||||
Foreign exchange rate | Foreign exchange rate | 8 | 8 | 15 | 5 | Foreign exchange rate | 6 | 7 | 15 | 4 | ||||||||||||||||||
Commodity price | Commodity price | 10 | 11 | 16 | 8 | Commodity price | 24 | 31 | 40 | 24 | ||||||||||||||||||
Less: Diversification benefit1 | (28) | (29) | N/A | |||||||||||||||||||||||||
Less: Diversification benefit2 | Less: Diversification benefit2 | (42) | (48) | N/A | ||||||||||||||||||||||||
Primary Risk Categories | Primary Risk Categories | $ | 40 | $ | 45 | $ | 58 | $ | 37 | Primary Risk Categories | $ | 45 | $ | 44 | $ | 57 | $ | 36 | ||||||||||
Credit Portfolio | Credit Portfolio | 12 | 13 | 17 | 11 | Credit Portfolio | 15 | 15 | 18 | 14 | ||||||||||||||||||
Less: Diversification benefit1 | (9) | (10) | N/A | |||||||||||||||||||||||||
Less: Diversification benefit2 | Less: Diversification benefit2 | (10) | (13) | N/A | ||||||||||||||||||||||||
Total Management VaR | Total Management VaR | $ | 43 | $ | 48 | $ | 60 | $ | 41 | Total Management VaR | $ | 50 | $ | 46 | $ | 57 | $ | 40 |
September | 27 |
Risk Disclosures |
$ in millions | $ in millions | At September 30, 2021 | At June 30, 2021 | $ in millions | At September 30, 2022 | At June 30, 2022 | ||||||||||
Derivatives | Derivatives | $ | 7 | $ | 7 | Derivatives | $ | 7 | $ | 7 | ||||||
Borrowings carried at fair value | Borrowings carried at fair value | 48 | 48 | Borrowings carried at fair value | 33 | 38 |
$ in millions | $ in millions | At September 30, 2021 | At June 30, 2021 | $ in millions | At September 30, 2022 | At June 30, 2022 | ||||||||||
Basis point change | Basis point change | Basis point change | ||||||||||||||
+100 | +100 | $ | 1,540 | $ | 1,463 | +100 | $ | 398 | $ | 93 | ||||||
-100 | -100 | (494) | (498) | -100 | (568) | (360) |
28 | September 2022 Form 10-Q |
Risk Disclosures |
Loss from 10% Decline | Loss from 10% Decline | |||||||||||||||
$ in millions | $ in millions | At September 30, 2021 | At June 30, 2021 | $ in millions | At September 30, 2022 | At June 30, 2022 | ||||||||||
Investments related to Investment Management activities | Investments related to Investment Management activities | $ | 422 | $ | 477 | Investments related to Investment Management activities | $ | 423 | $ | 423 | ||||||
Other investments: | Other investments: | Other investments: | ||||||||||||||
MUMSS | MUMSS | 174 | 172 | MUMSS | 131 | 139 | ||||||||||
Other Firm investments | Other Firm investments | 261 | 232 | Other Firm investments | 348 | 348 |
At September 30, 2021 | At September 30, 2022 | |||||||||||||||||||||||||||
$ in millions | $ in millions | HFI | HFS | FVO | Total | $ in millions | HFI | HFS | FVO | Total | ||||||||||||||||||
Institutional Securities: | Institutional Securities: | Institutional Securities: | ||||||||||||||||||||||||||
Corporate | Corporate | $ | 4,774 | $ | 8,998 | $ | 13 | $ | 13,785 | Corporate | $ | 6,858 | $ | 7,640 | $ | — | $ | 14,498 | ||||||||||
Secured lending facilities | Secured lending facilities | 27,345 | 3,650 | 350 | 31,345 | Secured lending facilities | 34,788 | 3,707 | 7 | 38,502 | ||||||||||||||||||
Commercial and Residential real estate | Commercial and Residential real estate | 6,915 | 434 | 5,536 | 12,885 | Commercial and Residential real estate | 8,191 | 1,750 | 2,044 | 11,985 | ||||||||||||||||||
Securities-based lending and Other | Securities-based lending and Other | 520 | 56 | 8,889 | 9,465 | Securities-based lending and Other | 2,728 | 109 | 5,013 | 7,850 | ||||||||||||||||||
Total Institutional Securities | Total Institutional Securities | 39,554 | 13,138 | 14,788 | 67,480 | Total Institutional Securities | 52,565 | 13,206 | 7,064 | 72,835 | ||||||||||||||||||
Wealth Management: | Wealth Management: | Wealth Management: | ||||||||||||||||||||||||||
Residential real estate | Residential real estate | 41,428 | 8 | — | 41,436 | Residential real estate | 52,904 | 5 | — | 52,909 | ||||||||||||||||||
Securities-based lending and Other | Securities-based lending and Other | 79,888 | 22 | — | 79,910 | Securities-based lending and Other | 92,859 | 142 | — | 93,001 | ||||||||||||||||||
Total Wealth Management | Total Wealth Management | 121,316 | 30 | — | 121,346 | Total Wealth Management | 145,763 | 147 | — | 145,910 | ||||||||||||||||||
Total Investment Management1 | Total Investment Management1 | 5 | — | 127 | 132 | Total Investment Management1 | 4 | — | 448 | 452 | ||||||||||||||||||
Total loans2 | Total loans2 | 160,875 | 13,168 | 14,915 | 188,958 | Total loans2 | 198,332 | 13,353 | 7,512 | 219,197 | ||||||||||||||||||
ACL | ACL | (684) | (684) | ACL | (749) | (749) | ||||||||||||||||||||||
Total loans, net of ACL | Total loans, net of ACL | $ | 160,191 | $ | 13,168 | $ | 14,915 | $ | 188,274 | Total loans, net of ACL | $ | 197,583 | $ | 13,353 | $ | 7,512 | $ | 218,448 | ||||||||||
Lending commitments3 | Lending commitments3 | $ | 137,116 | Lending commitments3 | $ | 136,605 | ||||||||||||||||||||||
Total exposure | Total exposure | $ | 325,390 | Total exposure | $ | 355,053 |
At December 31, 2020 | ||||||||||||||
$ in millions | HFI | HFS | FVO | Total | ||||||||||
Institutional Securities: | ||||||||||||||
Corporate | $ | 6,046 | $ | 8,580 | $ | 13 | $ | 14,639 | ||||||
Secured lending facilities | 25,727 | 3,296 | 648 | 29,671 | ||||||||||
Commercial and Residential real estate | 7,346 | 859 | 3,061 | 11,266 | ||||||||||
Securities-based lending and Other | 1,279 | 55 | 7,001 | 8,335 | ||||||||||
Total Institutional Securities | 40,398 | 12,790 | 10,723 | 63,911 | ||||||||||
Wealth Management: | ||||||||||||||
Residential real estate | 35,268 | 11 | — | 35,279 | ||||||||||
Securities-based lending and Other | 62,947 | — | — | 62,947 | ||||||||||
Total Wealth Management | 98,215 | 11 | — | 98,226 | ||||||||||
Total Investment Management1 | 6 | 12 | 425 | 443 | ||||||||||
Total loans2 | 138,619 | 12,813 | 11,148 | 162,580 | ||||||||||
ACL | (835) | (835) | ||||||||||||
Total loans, net of ACL | $ | 137,784 | $ | 12,813 | $ | 11,148 | $ | 161,745 | ||||||
Lending commitments3 | $ | 127,855 | ||||||||||||
Total exposure | $ | 289,600 |
At December 31, 2021 | ||||||||||||||
$ in millions | HFI | HFS | FVO | Total | ||||||||||
Institutional Securities: | ||||||||||||||
Corporate | $ | 5,567 | $ | 8,107 | $ | 8 | $ | 13,682 | ||||||
Secured lending facilities | 31,471 | 3,879 | — | 35,350 | ||||||||||
Commercial and Residential real estate | 7,227 | 1,777 | 4,774 | 13,778 | ||||||||||
Securities-based lending and Other | 1,292 | 45 | 7,710 | 9,047 | ||||||||||
Total Institutional Securities | 45,557 | 13,808 | 12,492 | 71,857 | ||||||||||
Wealth Management: | ||||||||||||||
Residential real estate | 44,251 | 7 | — | 44,258 | ||||||||||
Securities-based lending and Other | 85,143 | 17 | — | 85,160 | ||||||||||
Total Wealth Management | 129,394 | 24 | — | 129,418 | ||||||||||
Total Investment Management1 | 5 | — | 135 | 140 | ||||||||||
Total loans2 | 174,956 | 13,832 | 12,627 | 201,415 | ||||||||||
ACL | (654) | (654) | ||||||||||||
Total loans, net of ACL | $ | 174,302 | $ | 13,832 | $ | 12,627 | $ | 200,761 | ||||||
Lending commitments3 | $ | 134,934 | ||||||||||||
Total exposure | $ | 335,695 |
September | 29 |
Risk Disclosures |
$ in millions | |||||
ACL—Loans | $ | ||||
ACL—Lending Commitments | |||||
Total at December 31, | |||||
Gross charge-offs | |||||
Recoveries | 7 | ||||
Net (charge-offs) recoveries | (24) | ||||
Provision for credit losses | |||||
Other | |||||
Total at September 30, | $ | ||||
ACL—Loans | $ | ||||
ACL—Lending commitments |
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | IS | WM | Total | IS | WM | Total | $ in millions | IS | WM | Total | IS | WM | Total | ||||||||||||||||||||||||||
Loans | Loans | $ | 3 | $ | 2 | $ | 5 | $ | (38) | $ | 1 | $ | (37) | Loans | $ | (9) | $ | 15 | $ | 6 | $ | 88 | $ | 49 | $ | 137 | ||||||||||||||
Lending commitments | Lending commitments | 21 | (2) | 19 | 39 | (3) | 36 | Lending commitments | 33 | (4) | 29 | 62 | (6) | 56 | ||||||||||||||||||||||||||
Total | Total | $ | 24 | $ | — | $ | 24 | $ | 1 | $ | (2) | $ | (1) | Total | $ | 24 | $ | 11 | $ | 35 | $ | 150 | $ | 43 | $ | 193 |
4Q 2022 | 4Q 2023 | |||||||
Year-over-year growth rate | 0.8 | % | 1.3 | % |
At September 30, 2021 | At December 31, 2020 | |||||||||||||
IS | WM | IS | WM | |||||||||||
Accrual | 98.6 | % | 99.8 | % | 99.2 | % | 99.7 | % | ||||||
Nonaccrual1 | 1.4 | % | 0.2 | % | 0.8 | % | 0.3 | % |
At September 30, 2022 | At December 31, 2021 | |||||||||||||
IS | WM | IS | WM | |||||||||||
Accrual | 99.4 | % | 99.9 | % | 98.7 | % | 99.8 | % | ||||||
Nonaccrual1 | 0.6 | % | 0.1 | % | 1.3 | % | 0.2 | % |
$ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | ||||||||||||||
For the Nine Months Ended September 30, 2022 | ||||||||||||||||||||
Net charge-off (recovery) ratio1 | (0.09) | % | 0.01 | % | 0.09 | % | — | % | 0.02 | % | 0.01 | % | ||||||||
Average loans | $ | 6,441 | $ | 32,367 | $ | 8,196 | $ | 48,675 | $ | 92,681 | $ | 188,360 | ||||||||
For the Nine Months Ended September 30, 2021 | ||||||||||||||||||||
Net charge-off ratio1 | 0.37 | % | 0.25 | % | 0.30 | % | — | % | — | % | 0.07 | % | ||||||||
Average loans | $ | 5,182 | $ | 27,151 | $ | 7,066 | $ | 37,897 | $ | 72,484 | $ | 149,780 | ||||||||
At September 30, 2021 | At September 30, 2022 | |||||||||||||||||||||||||||||||||
Contractual Years to Maturity | Contractual Years to Maturity | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | $ in millions | <1 | 1-5 | 5-15 | >15 | Total | ||||||||||||||||||||||
Loans | Loans | Loans | ||||||||||||||||||||||||||||||||
AA | AA | $ | — | $ | 36 | $ | — | $ | — | $ | 36 | AA | $ | 58 | $ | 4 | $ | 150 | $ | — | $ | 212 | ||||||||||||
A | A | 1,138 | 814 | 371 | 377 | 2,700 | A | 987 | 1,148 | 225 | — | 2,360 | ||||||||||||||||||||||
BBB | BBB | 5,459 | 5,273 | 2,444 | 1,178 | 14,354 | BBB | 6,960 | 10,505 | 564 | — | 18,029 | ||||||||||||||||||||||
BB | BB | 10,886 | 10,260 | 4,290 | 954 | 26,390 | BB | 9,865 | 19,845 | 1,322 | 124 | 31,156 | ||||||||||||||||||||||
Other NIG | Other NIG | 4,328 | 7,286 | 3,937 | 3,305 | 18,856 | Other NIG | 5,028 | 10,573 | 1,886 | 133 | 17,620 | ||||||||||||||||||||||
Unrated2 | Unrated2 | 178 | 334 | 511 | 3,546 | 4,569 | Unrated2 | 71 | 616 | 699 | 1,470 | 2,856 | ||||||||||||||||||||||
Total loans, net of ACL | Total loans, net of ACL | 21,989 | 24,003 | 11,553 | 9,360 | 66,905 | Total loans, net of ACL | 22,969 | 42,691 | 4,846 | 1,727 | 72,233 | ||||||||||||||||||||||
Lending commitments | Lending commitments | Lending commitments | ||||||||||||||||||||||||||||||||
AAA | AAA | — | 50 | — | — | 50 | AAA | — | 50 | — | — | 50 | ||||||||||||||||||||||
AA | AA | 2,938 | 1,120 | 2,449 | — | 6,507 | AA | 2,116 | 2,896 | 245 | — | 5,257 | ||||||||||||||||||||||
A | A | 4,327 | 7,482 | 10,456 | 446 | 22,711 | A | 4,279 | 19,271 | 272 | 324 | 24,146 | ||||||||||||||||||||||
BBB | BBB | 10,509 | 16,834 | 19,487 | 1,050 | 47,880 | BBB | 7,007 | 40,213 | 879 | — | 48,099 | ||||||||||||||||||||||
BB | BB | 3,202 | 11,489 | 7,932 | 1,790 | 24,413 | BB | 3,820 | 18,084 | 948 | 52 | 22,904 | ||||||||||||||||||||||
Other NIG | Other NIG | 1,142 | 6,742 | 7,574 | 5,104 | 20,562 | Other NIG | 882 | 13,767 | 4,498 | — | 19,147 | ||||||||||||||||||||||
Unrated2 | Unrated2 | 1 | — | 17 | 15 | 33 | Unrated2 | — | 38 | — | 2 | 40 | ||||||||||||||||||||||
Total lending commitments | Total lending commitments | 22,119 | 43,717 | 47,915 | 8,405 | 122,156 | Total lending commitments | 18,104 | 94,319 | 6,842 | 378 | 119,643 | ||||||||||||||||||||||
Total exposure | Total exposure | $ | 44,108 | $ | 67,720 | $ | 59,468 | $ | 17,765 | $ | 189,061 | Total exposure | $ | 41,073 | $ | 137,010 | $ | 11,688 | $ | 2,105 | $ | 191,876 |
30 | September |
Risk Disclosures |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||||||||||||||
Contractual Years to Maturity | Contractual Years to Maturity | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | $ in millions | <1 | 1-5 | 5-15 | >15 | Total | ||||||||||||||||||||||
Loans | Loans | Loans | ||||||||||||||||||||||||||||||||
AA | AA | $ | 279 | $ | 10 | $ | — | $ | — | $ | 289 | AA | $ | — | $ | 35 | $ | 38 | $ | — | $ | 73 | ||||||||||||
A | A | 759 | 798 | 36 | 391 | 1,984 | A | 890 | 1,089 | 675 | — | 2,654 | ||||||||||||||||||||||
BBB | BBB | 5,043 | 5,726 | 2,746 | 469 | 13,984 | BBB | 5,335 | 8,944 | 563 | — | 14,842 | ||||||||||||||||||||||
BB | BB | 10,963 | 7,749 | 5,324 | 503 | 24,539 | BB | 10,734 | 18,349 | 814 | 18 | 29,915 | ||||||||||||||||||||||
Other NIG | Other NIG | 5,214 | 6,956 | 4,002 | 3,269 | 19,441 | Other NIG | 4,656 | 10,475 | 3,439 | 160 | 18,730 | ||||||||||||||||||||||
Unrated2 | Unrated2 | 141 | 142 | 330 | 2,322 | 2,935 | Unrated2 | 171 | 665 | 511 | 3,753 | 5,100 | ||||||||||||||||||||||
Total loans, net of ACL | Total loans, net of ACL | 22,399 | 21,381 | 12,438 | 6,954 | 63,172 | Total loans, net of ACL | 21,786 | 39,557 | 6,040 | 3,931 | 71,314 | ||||||||||||||||||||||
Lending commitments | Lending commitments | Lending commitments | ||||||||||||||||||||||||||||||||
AAA | AAA | — | 50 | — | — | 50 | AAA | — | 50 | — | — | 50 | ||||||||||||||||||||||
AA | AA | 4,047 | 1,038 | 2,135 | — | 7,220 | AA | 3,283 | 2,690 | — | — | 5,973 | ||||||||||||||||||||||
A | A | 6,025 | 8,359 | 9,808 | 425 | 24,617 | A | 5,255 | 17,646 | 407 | 303 | 23,611 | ||||||||||||||||||||||
BBB | BBB | 6,783 | 17,782 | 15,500 | 460 | 40,525 | BBB | 6,703 | 36,096 | 766 | — | 43,565 | ||||||||||||||||||||||
BB | BB | 4,357 | 8,958 | 7,958 | 3,103 | 24,376 | BB | 2,859 | 19,698 | 3,122 | — | 25,679 | ||||||||||||||||||||||
Other NIG | Other NIG | 664 | 7,275 | 6,077 | 2,652 | 16,668 | Other NIG | 992 | 13,420 | 6,180 | 55 | 20,647 | ||||||||||||||||||||||
Unrated2 | Unrated2 | 4 | — | — | — | 4 | Unrated2 | 672 | 40 | 3 | — | 715 | ||||||||||||||||||||||
Total lending commitments | Total lending commitments | 21,880 | 43,462 | 41,478 | 6,640 | 113,460 | Total lending commitments | 19,764 | 89,640 | 10,478 | 358 | 120,240 | ||||||||||||||||||||||
Total exposure | Total exposure | $ | 44,279 | $ | 64,843 | $ | 53,916 | $ | 13,594 | $ | 176,632 | Total exposure | $ | 41,550 | $ | 129,197 | $ | 16,518 | $ | 4,289 | $ | 191,554 |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Industry | Industry | Industry | ||||||||||||||
Financials | Financials | $ | 50,404 | $ | 44,358 | Financials | $ | 52,630 | $ | 52,066 | ||||||
Real estate | Real estate | 30,411 | 25,484 | Real estate | 32,325 | 31,560 | ||||||||||
Communications services | Communications services | 15,386 | 12,645 | |||||||||||||
Industrials | Industrials | 17,409 | 15,861 | Industrials | 14,555 | 17,446 | ||||||||||
Communications services | 14,382 | 12,600 | ||||||||||||||
Information technology | Information technology | 12,834 | 13,471 | |||||||||||||
Healthcare | Healthcare | 14,021 | 12,650 | Healthcare | 11,863 | 12,618 | ||||||||||
Consumer discretionary | Consumer discretionary | 11,763 | 11,177 | Consumer discretionary | 11,352 | 11,628 | ||||||||||
Information technology | 10,601 | 11,358 | ||||||||||||||
Utilities | Utilities | 10,150 | 9,504 | Utilities | 10,301 | 10,310 | ||||||||||
Energy | Energy | 8,456 | 10,064 | Energy | 9,170 | 8,544 | ||||||||||
Consumer staples | Consumer staples | 8,170 | 9,088 | Consumer staples | 8,186 | 7,855 | ||||||||||
Materials | Materials | 6,434 | 6,084 | Materials | 6,296 | 6,394 | ||||||||||
Insurance | Insurance | 4,249 | 3,889 | Insurance | 5,300 | 4,954 | ||||||||||
Other | Other | 2,611 | 4,515 | Other | 1,678 | 2,063 | ||||||||||
Total exposure | Total exposure | $ | 189,061 | $ | 176,632 | Total exposure | $ | 191,876 | $ | 191,554 |
At September 30, 2021 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||
Loans, net of ACL | $ | 1,331 | $ | 609 | $ | 479 | $ | 3,148 | $ | 5,567 | |||||||
Lending commitments | 5,861 | 5,078 | 2,877 | 6,442 | 20,258 | ||||||||||||
Total exposure | $ | 7,192 | $ | 5,687 | $ | 3,356 | $ | 9,590 | $ | 25,825 |
At December 31, 2020 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||
Loans, net of ACL | $ | 1,241 | $ | 907 | $ | 873 | $ | 2,090 | $ | 5,111 | |||||||
Lending commitments | 2,810 | 4,649 | 2,678 | 4,650 | 14,787 | ||||||||||||
Total exposure | $ | 4,051 | $ | 5,556 | $ | 3,551 | $ | 6,740 | $ | 19,898 |
At September 30, 2022 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | <1 | 1-5 | 5-15 | Total | |||||||||||||
Loans, net of ACL | $ | 1,605 | $ | 1,564 | $ | 1,282 | $ | 4,451 | |||||||||
Lending commitments | 1,400 | 6,436 | 4,787 | 12,623 | |||||||||||||
Total exposure | $ | 3,005 | $ | 8,000 | $ | 6,069 | $ | 17,074 |
At December 31, 2021 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | <1 | 1-5 | 5-15 | Total | |||||||||||||
Loans, net of ACL | $ | 951 | $ | 2,088 | $ | 1,803 | $ | 4,842 | |||||||||
Lending commitments | 1,619 | 5,288 | 8,879 | 15,786 | |||||||||||||
Total exposure | $ | 2,570 | $ | 7,376 | $ | 10,682 | $ | 20,628 |
At September 30, 2021 | At September 30, 2022 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Loans | Lending Commitments | Total | $ in millions | Loans | Lending Commitments | Total | ||||||||||||||||||||||||||
Corporate | Corporate | $ | 4,774 | $ | 73,264 | $ | 78,038 | Corporate | $ | 6,858 | $ | 75,801 | $ | 82,659 | ||||||||||||||||||||
Secured lending facilities | Secured lending facilities | 27,345 | 9,434 | 36,779 | Secured lending facilities | 34,788 | 11,617 | 46,405 | ||||||||||||||||||||||||||
Commercial real estate | Commercial real estate | 6,915 | 341 | 7,256 | Commercial real estate | 8,191 | 433 | 8,624 | ||||||||||||||||||||||||||
Other | 520 | 645 | 1,165 | |||||||||||||||||||||||||||||||
Securities-based lending and Other | Securities-based lending and Other | 2,728 | 992 | 3,720 | ||||||||||||||||||||||||||||||
Total, before ACL | Total, before ACL | $ | 39,554 | $ | 83,684 | $ | 123,238 | Total, before ACL | $ | 52,565 | $ | 88,843 | $ | 141,408 | ||||||||||||||||||||
ACL | ACL | $ | (575) | $ | (416) | $ | (991) | ACL | $ | (602) | $ | (475) | $ | (1,077) |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Loans | Lending Commitments | Total | $ in millions | Loans | Lending Commitments | Total | ||||||||||||||||||||||||||
Corporate | Corporate | $ | 6,046 | $ | 69,488 | $ | 75,534 | Corporate | $ | 5,567 | $ | 73,585 | $ | 79,152 | ||||||||||||||||||||
Secured lending facilities | Secured lending facilities | 25,727 | 8,312 | 34,039 | Secured lending facilities | 31,471 | 10,003 | 41,474 | ||||||||||||||||||||||||||
Commercial real estate | Commercial real estate | 7,346 | 334 | 7,680 | Commercial real estate | 7,227 | 1,475 | 8,702 | ||||||||||||||||||||||||||
Other | 1,279 | 1,135 | 2,414 | |||||||||||||||||||||||||||||||
Securities-based lending and Other | Securities-based lending and Other | 1,292 | 887 | 2,179 | ||||||||||||||||||||||||||||||
Total, before ACL | Total, before ACL | $ | 40,398 | $ | 79,269 | $ | 119,667 | Total, before ACL | $ | 45,557 | $ | 85,950 | $ | 131,507 | ||||||||||||||||||||
ACL | ACL | $ | (739) | $ | (391) | $ | (1,130) | ACL | $ | (543) | $ | (426) | $ | (969) |
September | 31 |
Risk Disclosures |
$ in millions | Corporate | Secured lending facilities | Commercial real estate | Other | Total | ||||||||||||
ACL—Loans | $ | 309 | $ | 198 | $ | 211 | $ | 21 | $ | 739 | |||||||
ACL—Lending commitments | 323 | 38 | 11 | 19 | 391 | ||||||||||||
Total at December 31, 2020 | $ | 632 | $ | 236 | $ | 222 | $ | 40 | $ | 1,130 | |||||||
Gross charge-offs | (19) | (67) | (21) | — | (107) | ||||||||||||
Provision for credit losses | (52) | 49 | 4 | — | 1 | ||||||||||||
Other1 | (5) | (2) | (2) | (24) | (33) | ||||||||||||
Total at September 30, 2021 | $ | 556 | $ | 216 | $ | 203 | $ | 16 | $ | 991 | |||||||
ACL—Loans | $ | 197 | $ | 175 | $ | 193 | $ | 10 | $ | 575 | |||||||
ACL—Lending commitments | 359 | 41 | 10 | 6 | 416 |
$ in millions | Corporate | Secured Lending Facilities | Commercial Real Estate | Other | Total | ||||||||||||
ACL—Loans | $ | 165 | $ | 163 | $ | 206 | $ | 9 | $ | 543 | |||||||
ACL—Lending commitments | 356 | 41 | 20 | 9 | 426 | ||||||||||||
Total at December 31, 2021 | $ | 521 | $ | 204 | $ | 226 | $ | 18 | $ | 969 | |||||||
Gross charge-offs | — | (3) | (7) | (7) | (17) | ||||||||||||
Recoveries | 6 | — | — | — | 6 | ||||||||||||
Net (charge-offs) recoveries | 6 | (3) | (7) | (7) | (11) | ||||||||||||
Provision for credit losses | 110 | 5 | 29 | 6 | 150 | ||||||||||||
Other | (18) | (3) | (10) | — | (31) | ||||||||||||
Total at September 30, 2022 | $ | 619 | $ | 203 | $ | 238 | $ | 17 | $ | 1,077 | |||||||
ACL—Loans | $ | 211 | $ | 156 | $ | 224 | $ | 11 | $ | 602 | |||||||
ACL—Lending commitments | 408 | 47 | 14 | 6 | 475 |
At September 30, 2021 | At December 31, 2020 | At September 30, 2022 | At December 31, 2021 | |||||||||||||
Corporate | Corporate | 4.1 | % | 5.1 | % | Corporate | 3.1 | % | 3.0 | % | ||||||
Secured lending facilities | Secured lending facilities | 0.6 | % | 0.8 | % | Secured lending facilities | 0.4 | % | 0.5 | % | ||||||
Commercial real estate | Commercial real estate | 2.8 | % | 2.9 | % | Commercial real estate | 2.7 | % | 2.9 | % | ||||||
Other | 1.9 | % | 1.7 | % | ||||||||||||
Securities-based lending and Other | Securities-based lending and Other | 0.4 | % | 0.7 | % | |||||||||||
Total Institutional Securities loans | Total Institutional Securities loans | 1.5 | % | 1.8 | % | Total Institutional Securities loans | 1.1 | % | 1.2 | % |
At September 30, 2021 | At September 30, 2022 | |||||||||||||||||||||||||||||||||
Contractual Years to Maturity | Contractual Years to Maturity | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | $ in millions | <1 | 1-5 | 5-15 | >15 | Total | ||||||||||||||||||||||
Securities-based lending and Other | $ | 70,226 | $ | 5,411 | $ | 2,503 | $ | 1,717 | $ | 79,857 | ||||||||||||||||||||||||
Residential real estate | 6 | — | 7 | 41,367 | 41,380 | |||||||||||||||||||||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | $ | 81,996 | $ | 9,204 | $ | 1,610 | $ | 131 | $ | 92,941 | |||||||||||||||||||||||
Residential real estate loans | Residential real estate loans | 2 | 24 | 1,359 | 51,437 | 52,822 | ||||||||||||||||||||||||||||
Total loans, net of ACL | Total loans, net of ACL | $ | 70,232 | $ | 5,411 | $ | 2,510 | $ | 43,084 | $ | 121,237 | Total loans, net of ACL | $ | 81,998 | $ | 9,228 | $ | 2,969 | $ | 51,568 | $ | 145,763 | ||||||||||||
Lending commitments | Lending commitments | 12,005 | 2,513 | 116 | 326 | 14,960 | Lending commitments | 12,367 | 4,252 | 48 | 295 | 16,962 | ||||||||||||||||||||||
Total exposure | Total exposure | $ | 82,237 | $ | 7,924 | $ | 2,626 | $ | 43,410 | $ | 136,197 | Total exposure | $ | 94,365 | $ | 13,480 | $ | 3,017 | $ | 51,863 | $ | 162,725 |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||||||||||||||
Contractual Years to Maturity | Contractual Years to Maturity | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | $ in millions | <1 | 1-5 | 5-15 | >15 | Total | ||||||||||||||||||||||
Securities-based lending and Other | $ | 54,483 | $ | 4,587 | $ | 2,167 | $ | 1,672 | $ | 62,909 | ||||||||||||||||||||||||
Residential real estate | 9 | 1 | 1 | 35,210 | 35,221 | |||||||||||||||||||||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | $ | 74,466 | $ | 8,927 | $ | 1,571 | $ | 144 | $ | 85,108 | |||||||||||||||||||||||
Residential real estate loans | Residential real estate loans | 4 | 10 | 1,231 | 42,954 | 44,199 | ||||||||||||||||||||||||||||
Total loans, net of ACL | Total loans, net of ACL | $ | 54,492 | $ | 4,588 | $ | 2,168 | $ | 36,882 | $ | 98,130 | Total loans, net of ACL | $ | 74,470 | $ | 8,937 | $ | 2,802 | $ | 43,098 | $ | 129,307 | ||||||||||||
Lending commitments | Lending commitments | 11,666 | 2,356 | 120 | 253 | 14,395 | Lending commitments | 11,894 | 2,467 | 51 | 282 | 14,694 | ||||||||||||||||||||||
Total exposure | Total exposure | $ | 66,158 | $ | 6,944 | $ | 2,288 | $ | 37,135 | $ | 112,525 | Total exposure | $ | 86,364 | $ | 11,404 | $ | 2,853 | $ | 43,380 | $ | 144,001 |
$ in millions | |||||||
ACL—Loans | $ | ||||||
ACL—Lending commitments | |||||||
Total at December 31, | |||||||
Gross charge-offs | (14) | ||||||
Recoveries | 1 | ||||||
Net (charge-offs) recoveries | (13) | ||||||
Provision for credit losses | |||||||
Total at September 30, | $ | ||||||
ACL—Loans | $ | ||||||
ACL—Lending commitments |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Institutional Securities | Institutional Securities | $ | 41,060 | $ | 51,570 | Institutional Securities | $ | 19,109 | $ | 40,545 | ||||||
Wealth Management | Wealth Management | 28,548 | 23,144 | Wealth Management | 24,306 | 30,987 | ||||||||||
Total | Total | $ | 69,608 | $ | 74,714 | Total | $ | 43,415 | $ | 71,532 |
32 | September |
Risk Disclosures |
Counterparty Credit Rating1 | Counterparty Credit Rating1 | |||||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | AAA | AA | A | BBB | NIG | Total | $ in millions | AAA | AA | A | BBB | NIG | Total | ||||||||||||||||||||||||||
At September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||
At September 30, 2022 | At September 30, 2022 | |||||||||||||||||||||||||||||||||||||||
Less than 1 year | Less than 1 year | $ | 1,503 | $ | 13,004 | $ | 36,932 | $ | 23,620 | $ | 14,141 | $ | 89,200 | Less than 1 year | $ | 3,523 | $ | 35,580 | $ | 63,540 | $ | 49,825 | $ | 16,985 | $ | 169,453 | ||||||||||||||
1-3 years | 1-3 years | 790 | 4,478 | 15,274 | 15,286 | 7,802 | 43,630 | 1-3 years | 1,846 | 9,595 | 24,041 | 25,556 | 10,411 | 71,449 | ||||||||||||||||||||||||||
3-5 years | 3-5 years | 457 | 4,766 | 7,382 | 8,247 | 3,790 | 24,642 | 3-5 years | 889 | 7,259 | 10,868 | 10,975 | 4,959 | 34,950 | ||||||||||||||||||||||||||
Over 5 years | Over 5 years | 4,260 | 26,468 | 64,816 | 44,303 | 6,184 | 146,031 | Over 5 years | 4,267 | 37,745 | 51,423 | 50,685 | 9,183 | 153,303 | ||||||||||||||||||||||||||
Total, gross | Total, gross | $ | 7,010 | $ | 48,716 | $ | 124,404 | $ | 91,456 | $ | 31,917 | $ | 303,503 | Total, gross | $ | 10,525 | $ | 90,179 | $ | 149,872 | $ | 137,041 | $ | 41,538 | $ | 429,155 | ||||||||||||||
Counterparty netting | Counterparty netting | (2,867) | (37,546) | (96,338) | (65,345) | (14,619) | (216,715) | Counterparty netting | (4,820) | (70,458) | (103,445) | (104,828) | (24,463) | (308,014) | ||||||||||||||||||||||||||
Cash and securities collateral | Cash and securities collateral | (3,244) | (8,123) | (22,438) | (18,083) | (7,453) | (59,341) | Cash and securities collateral | (3,115) | (16,036) | (38,904) | (20,461) | (7,467) | (85,983) | ||||||||||||||||||||||||||
Total, net | Total, net | $ | 899 | $ | 3,047 | $ | 5,628 | $ | 8,028 | $ | 9,845 | $ | 27,447 | Total, net | $ | 2,590 | $ | 3,685 | $ | 7,523 | $ | 11,752 | $ | 9,608 | $ | 35,158 |
Counterparty Credit Rating1 | Counterparty Credit Rating1 | |||||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | AAA | AA | A | BBB | NIG | Total | $ in millions | AAA | AA | A | BBB | NIG | Total | ||||||||||||||||||||||||||
At December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
At December 31, 2021 | At December 31, 2021 | |||||||||||||||||||||||||||||||||||||||
Less than 1 year | Less than 1 year | $ | 1,179 | $ | 16,166 | $ | 52,164 | $ | 26,088 | $ | 12,175 | $ | 107,772 | Less than 1 year | $ | 1,561 | $ | 11,088 | $ | 32,069 | $ | 25,680 | $ | 11,924 | $ | 82,322 | ||||||||||||||
1-3 years | 1-3 years | 572 | 5,225 | 17,560 | 13,750 | 8,134 | 45,241 | 1-3 years | 780 | 4,577 | 16,821 | 15,294 | 6,300 | 43,772 | ||||||||||||||||||||||||||
3-5 years | 3-5 years | 359 | 4,326 | 11,328 | 8,363 | 4,488 | 28,864 | 3-5 years | 593 | 4,807 | 6,805 | 8,030 | 3,317 | 23,552 | ||||||||||||||||||||||||||
Over 5 years | Over 5 years | 4,545 | 32,049 | 84,845 | 63,084 | 13,680 | 198,203 | Over 5 years | 4,359 | 26,056 | 61,091 | 44,091 | 4,633 | 140,230 | ||||||||||||||||||||||||||
Total, gross | Total, gross | $ | 6,655 | $ | 57,766 | $ | 165,897 | $ | 111,285 | $ | 38,477 | $ | 380,080 | Total, gross | $ | 7,293 | $ | 46,528 | $ | 116,786 | $ | 93,095 | $ | 26,174 | $ | 289,876 | ||||||||||||||
Counterparty netting | Counterparty netting | (3,269) | (44,306) | (134,310) | (84,171) | (22,227) | (288,283) | Counterparty netting | (3,093) | (36,957) | (91,490) | (68,365) | (11,642) | (211,547) | ||||||||||||||||||||||||||
Cash and securities collateral | Cash and securities collateral | (3,124) | (10,973) | (26,712) | (20,708) | (8,979) | (70,496) | Cash and securities collateral | (3,539) | (7,608) | (20,500) | (17,755) | (5,762) | (55,164) | ||||||||||||||||||||||||||
Total, net | Total, net | $ | 262 | $ | 2,487 | $ | 4,875 | $ | 6,406 | $ | 7,271 | $ | 21,301 | Total, net | $ | 661 | $ | 1,963 | $ | 4,796 | $ | 6,975 | $ | 8,770 | $ | 23,165 |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Industry | Industry | Industry | ||||||||||||||
Financials | Financials | $ | 7,421 | $ | 6,195 | Financials | $ | 11,201 | $ | 5,096 | ||||||
Utilities | Utilities | 6,218 | 3,954 | Utilities | 7,436 | 5,918 | ||||||||||
Energy | Energy | 4,097 | 965 | Energy | 5,574 | 2,587 | ||||||||||
Industrials | Industrials | 2,444 | 985 | |||||||||||||
Regional governments | Regional governments | 2,163 | 963 | |||||||||||||
Sovereign governments | Sovereign governments | 1,316 | 386 | |||||||||||||
Communications services | Communications services | 1,235 | 348 | |||||||||||||
Insurance | Insurance | 625 | 174 | |||||||||||||
Consumer Discretionary | Consumer Discretionary | 2,230 | 1,866 | Consumer Discretionary | 611 | 3,069 | ||||||||||
Industrials | 1,029 | 1,291 | ||||||||||||||
Consumer staples | Consumer staples | 596 | 324 | |||||||||||||
Information technology | Information technology | 1,000 | 1,104 | Information technology | 526 | 1,060 | ||||||||||
Regional governments | 980 | 806 | ||||||||||||||
Healthcare | Healthcare | 798 | 1,494 | Healthcare | 478 | 682 | ||||||||||
Sovereign governments | 684 | 650 | ||||||||||||||
Insurance | 682 | 518 | ||||||||||||||
Not-for-profit organizations | Not-for-profit organizations | 571 | 701 | Not-for-profit organizations | 220 | 531 | ||||||||||
Communications services | 328 | 529 | ||||||||||||||
Materials | Materials | 299 | 430 | Materials | 201 | 240 | ||||||||||
Consumer staples | 288 | 339 | ||||||||||||||
Real estate | Real estate | 198 | 378 | Real estate | 54 | 280 | ||||||||||
Other | Other | 624 | 81 | Other | 478 | 522 | ||||||||||
Total | Total | $ | 27,447 | $ | 21,301 | Total | $ | 35,158 | $ | 23,165 |
$ in millions | United Kingdom | Japan | France | Germany | Spain | ||||||||||||
Sovereign | |||||||||||||||||
Net inventory1 | $ | (794) | $ | 7,006 | $ | 1,361 | $ | (3,085) | $ | 355 | |||||||
Net counterparty exposure2 | 9 | 32 | 6 | 69 | 38 | ||||||||||||
Lending commitments | — | — | — | 637 | — | ||||||||||||
Exposure before hedges | (785) | 7,038 | 1,367 | (2,379) | 393 | ||||||||||||
Hedges3 | (307) | (79) | (6) | (287) | — | ||||||||||||
Net exposure | $ | (1,092) | $ | 6,959 | $ | 1,361 | $ | (2,666) | $ | 393 | |||||||
Non-sovereign | |||||||||||||||||
Net inventory1 | $ | 729 | $ | 873 | $ | (877) | $ | (455) | $ | 10 | |||||||
Net counterparty exposure2 | 13,517 | 4,297 | 2,757 | 2,519 | 794 | ||||||||||||
Loans | 3,461 | 380 | 579 | 1,694 | 3,168 | ||||||||||||
Lending commitments | 6,791 | 180 | 4,344 | 5,768 | 874 | ||||||||||||
Exposure before hedges | 24,498 | 5,730 | 6,803 | 9,526 | 4,846 | ||||||||||||
Hedges3 | (1,401) | (155) | (1,167) | (1,033) | (540) | ||||||||||||
Net exposure | $ | 23,097 | $ | 5,575 | $ | 5,636 | $ | 8,493 | $ | 4,306 | |||||||
Total net exposure | $ | 22,005 | $ | 12,534 | $ | 6,997 | $ | 5,827 | $ | 4,699 |
$ in millions | United Kingdom | Germany | Japan | France | Brazil | ||||||||||||
Sovereign | |||||||||||||||||
Net inventory1 | $ | (1,289) | $ | 1,931 | $ | 4,714 | $ | 2,925 | $ | 3,045 | |||||||
Net counterparty exposure2 | 19 | 268 | 146 | 8 | — | ||||||||||||
Exposure before hedges | (1,270) | 2,199 | 4,860 | 2,933 | 3,045 | ||||||||||||
Hedges3 | (250) | (284) | (168) | (6) | (109) | ||||||||||||
Net exposure | $ | (1,520) | $ | 1,915 | $ | 4,692 | $ | 2,927 | $ | 2,936 | |||||||
Non-sovereign | |||||||||||||||||
Net inventory1 | $ | 1,975 | $ | 462 | $ | 749 | $ | 329 | $ | 118 | |||||||
Net counterparty exposure2 | 15,075 | 4,126 | 3,695 | 3,888 | 497 | ||||||||||||
Loans | 5,056 | 1,101 | 357 | 438 | 254 | ||||||||||||
Lending commitments | 5,922 | 3,556 | — | 2,400 | 405 | ||||||||||||
Exposure before hedges | 28,028 | 9,245 | 4,801 | 7,055 | 1,274 | ||||||||||||
Hedges3 | (1,706) | (1,590) | (559) | (1,836) | (39) | ||||||||||||
Net exposure | $ | 26,322 | $ | 7,655 | $ | 4,242 | $ | 5,219 | $ | 1,235 | |||||||
Total net exposure | $ | 24,802 | $ | 9,570 | $ | 8,934 | $ | 8,146 | $ | 4,171 |
$ in millions | $ in millions | China | Netherlands | India | Canada | Italy | $ in millions | Canada | China | Spain | Korea | Netherlands | ||||||||||||||||||||||
Sovereign | Sovereign | Sovereign | ||||||||||||||||||||||||||||||||
Net inventory1 | Net inventory1 | $ | (17) | $ | 256 | $ | 972 | $ | (523) | $ | 845 | Net inventory1 | $ | 67 | $ | (271) | $ | (152) | $ | 1,136 | $ | 40 | ||||||||||||
Net counterparty exposure2 | Net counterparty exposure2 | 73 | — | — | 67 | 53 | Net counterparty exposure2 | 53 | 574 | 41 | 679 | — | ||||||||||||||||||||||
Exposure before hedges | Exposure before hedges | 56 | 256 | 972 | (456) | 898 | Exposure before hedges | 120 | 303 | (111) | 1,815 | 40 | ||||||||||||||||||||||
Hedges3 | Hedges3 | (81) | (32) | — | — | (25) | Hedges3 | — | (65) | (8) | (37) | (17) | ||||||||||||||||||||||
Net exposure | Net exposure | $ | (25) | $ | 224 | $ | 972 | $ | (456) | $ | 873 | Net exposure | $ | 120 | $ | 238 | $ | (119) | $ | 1,778 | $ | 23 | ||||||||||||
Non-sovereign | Non-sovereign | Non-sovereign | ||||||||||||||||||||||||||||||||
Net inventory1 | Net inventory1 | $ | 1,142 | $ | (359) | $ | 752 | $ | 263 | $ | 123 | Net inventory1 | $ | 739 | $ | 1,207 | $ | 426 | $ | 229 | $ | 123 | ||||||||||||
Net counterparty exposure2 | Net counterparty exposure2 | 908 | 1,064 | 978 | 1,473 | 1,042 | Net counterparty exposure2 | 1,781 | 1,252 | 984 | 915 | 1,428 | ||||||||||||||||||||||
Loans | Loans | 800 | 373 | 235 | 58 | 193 | Loans | 204 | 393 | 1,938 | 131 | 484 | ||||||||||||||||||||||
Lending commitments | Lending commitments | 1,786 | 2,847 | — | 1,547 | 367 | Lending commitments | 1,358 | 680 | 816 | 25 | 1,429 | ||||||||||||||||||||||
Exposure before hedges | Exposure before hedges | 4,636 | 3,925 | 1,965 | 3,341 | 1,725 | Exposure before hedges | 4,082 | 3,532 | 4,164 | 1,300 | 3,464 | ||||||||||||||||||||||
Hedges3 | Hedges3 | (200) | (271) | — | (86) | (94) | Hedges3 | (161) | (99) | (923) | (12) | (589) | ||||||||||||||||||||||
Net exposure | Net exposure | $ | 4,436 | $ | 3,654 | $ | 1,965 | $ | 3,255 | $ | 1,631 | Net exposure | $ | 3,921 | $ | 3,433 | $ | 3,241 | $ | 1,288 | $ | 2,875 | ||||||||||||
Total net exposure | Total net exposure | $ | 4,411 | $ | 3,878 | $ | 2,937 | $ | 2,799 | $ | 2,504 | Total net exposure | $ | 4,041 | $ | 3,671 | $ | 3,122 | $ | 3,066 | $ | 2,898 |
September 2022 Form 10-Q | 33 |
Risk Disclosures |
$ in millions | At September 30, | |||||||||
Country of Risk | Collateral2 | |||||||||
United Kingdom | U.K., U.S. and | 14,632 | ||||||||
Japan | Japan and U.S. | 9,008 | ||||||||
Other |
34 | September |
/s/ Deloitte & Touche LLP | ||
New York, New York | ||
November 3, |
September | 35 |
Consolidated Income (Unaudited) |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
in millions, except per share data | in millions, except per share data | 2021 | 2020 | 2021 | 2020 | in millions, except per share data | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Revenues | Revenues | Revenues | ||||||||||||||||||||||||||
Investment banking | Investment banking | $ | 3,013 | $ | 1,826 | $ | 8,413 | $ | 5,239 | Investment banking | $ | 1,373 | $ | 3,013 | $ | 4,281 | $ | 8,413 | ||||||||||
Trading | Trading | 2,861 | 3,150 | 10,416 | 10,754 | Trading | 3,331 | 2,861 | 10,911 | 10,416 | ||||||||||||||||||
Investments | Investments | 45 | 346 | 744 | 659 | Investments | (168) | 45 | (70) | 744 | ||||||||||||||||||
Commissions and fees | Commissions and fees | 1,280 | 1,037 | 4,214 | 3,499 | Commissions and fees | 1,133 | 1,280 | 3,769 | 4,214 | ||||||||||||||||||
Asset management | Asset management | 5,201 | 3,664 | 14,572 | 10,346 | Asset management | 4,744 | 5,201 | 14,775 | 14,572 | ||||||||||||||||||
Other | Other | 290 | 212 | 916 | 221 | Other | 63 | 290 | 245 | 916 | ||||||||||||||||||
Total non-interest revenues | Total non-interest revenues | 12,690 | 10,235 | 39,275 | 30,718 | Total non-interest revenues | 10,476 | 12,690 | 33,911 | 39,275 | ||||||||||||||||||
Interest income | Interest income | 2,351 | 2,056 | 7,000 | 7,917 | Interest income | 6,101 | 2,351 | 12,363 | 7,000 | ||||||||||||||||||
Interest expense | Interest expense | 288 | 570 | 1,044 | 3,475 | Interest expense | 3,591 | 288 | 5,355 | 1,044 | ||||||||||||||||||
Net interest | Net interest | 2,063 | 1,486 | 5,956 | 4,442 | Net interest | 2,510 | 2,063 | 7,008 | 5,956 | ||||||||||||||||||
Net revenues | Net revenues | 14,753 | 11,721 | 45,231 | 35,160 | Net revenues | 12,986 | 14,753 | 40,919 | 45,231 | ||||||||||||||||||
Provision for credit losses | Provision for credit losses | 24 | 111 | (1) | 757 | Provision for credit losses | 35 | 24 | 193 | (1) | ||||||||||||||||||
Non-interest expenses | Non-interest expenses | Non-interest expenses | ||||||||||||||||||||||||||
Compensation and benefits | Compensation and benefits | 5,920 | 5,086 | 19,141 | 15,404 | Compensation and benefits | 5,614 | 5,920 | 17,438 | 19,141 | ||||||||||||||||||
Brokerage, clearing and exchange fees | Brokerage, clearing and exchange fees | 825 | 697 | 2,530 | 2,153 | Brokerage, clearing and exchange fees | 847 | 825 | 2,607 | 2,530 | ||||||||||||||||||
Information processing and communications | Information processing and communications | 788 | 616 | 2,286 | 1,768 | Information processing and communications | 874 | 788 | 2,560 | 2,286 | ||||||||||||||||||
Professional services | Professional services | 734 | 542 | 2,104 | 1,526 | Professional services | 755 | 734 | 2,217 | 2,104 | ||||||||||||||||||
Occupancy and equipment | Occupancy and equipment | 427 | 373 | 1,246 | 1,103 | Occupancy and equipment | 429 | 427 | 1,286 | 1,246 | ||||||||||||||||||
Marketing and business development | Marketing and business development | 146 | 78 | 438 | 273 | Marketing and business development | 215 | 146 | 610 | 438 | ||||||||||||||||||
Other | Other | 1,015 | 731 | 2,703 | 2,188 | Other | 829 | 1,015 | 2,713 | 2,703 | ||||||||||||||||||
Total non-interest expenses | Total non-interest expenses | 9,855 | 8,123 | 30,448 | 24,415 | Total non-interest expenses | 9,563 | 9,855 | 29,431 | 30,448 | ||||||||||||||||||
Income before provision for income taxes | Income before provision for income taxes | 4,874 | 3,487 | 14,784 | 9,988 | Income before provision for income taxes | 3,388 | 4,874 | 11,295 | 14,784 | ||||||||||||||||||
Provision for income taxes | Provision for income taxes | 1,150 | 736 | 3,380 | 2,221 | Provision for income taxes | 726 | 1,150 | 2,382 | 3,380 | ||||||||||||||||||
Net income | Net income | $ | 3,724 | $ | 2,751 | $ | 11,404 | $ | 7,767 | Net income | $ | 2,662 | $ | 3,724 | $ | 8,913 | $ | 11,404 | ||||||||||
Net income applicable to noncontrolling interests | Net income applicable to noncontrolling interests | 17 | 34 | 66 | 156 | Net income applicable to noncontrolling interests | 30 | 17 | 120 | 66 | ||||||||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | $ | 3,707 | $ | 2,717 | $ | 11,338 | $ | 7,611 | Net income applicable to Morgan Stanley | $ | 2,632 | $ | 3,707 | $ | 8,793 | $ | 11,338 | ||||||||||
Preferred stock dividends | Preferred stock dividends | 123 | 120 | 364 | 377 | Preferred stock dividends | 138 | 123 | 366 | 364 | ||||||||||||||||||
Earnings applicable to Morgan Stanley common shareholders | Earnings applicable to Morgan Stanley common shareholders | $ | 3,584 | $ | 2,597 | $ | 10,974 | $ | 7,234 | Earnings applicable to Morgan Stanley common shareholders | $ | 2,494 | $ | 3,584 | $ | 8,427 | $ | 10,974 | ||||||||||
Earnings per common share | Earnings per common share | Earnings per common share | ||||||||||||||||||||||||||
Basic | Basic | $ | 2.01 | $ | 1.68 | $ | 6.11 | $ | 4.68 | Basic | $ | 1.49 | $ | 2.01 | $ | 4.95 | $ | 6.11 | ||||||||||
Diluted | Diluted | $ | 1.98 | $ | 1.66 | $ | 6.02 | $ | 4.62 | Diluted | $ | 1.47 | $ | 1.98 | $ | 4.88 | $ | 6.02 | ||||||||||
Average common shares outstanding | Average common shares outstanding | Average common shares outstanding | ||||||||||||||||||||||||||
Basic | Basic | 1,781 | 1,542 | 1,797 | 1,546 | Basic | 1,674 | 1,781 | 1,704 | 1,797 | ||||||||||||||||||
Diluted | Diluted | 1,812 | 1,566 | 1,824 | 1,565 | Diluted | 1,697 | 1,812 | 1,725 | 1,824 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Net income | Net income | $ | 3,724 | $ | 2,751 | $ | 11,404 | $ | 7,767 | Net income | $ | 2,662 | $ | 3,724 | $ | 8,913 | $ | 11,404 | ||||||||||
Other comprehensive income (loss), net of tax: | Other comprehensive income (loss), net of tax: | Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||
Foreign currency translation adjustments | Foreign currency translation adjustments | (78) | 110 | (256) | (1) | Foreign currency translation adjustments | (268) | (78) | (661) | (256) | ||||||||||||||||||
Change in net unrealized gains (losses) on available-for-sale securities | Change in net unrealized gains (losses) on available-for-sale securities | (256) | (62) | (1,039) | 1,558 | Change in net unrealized gains (losses) on available-for-sale securities | (1,307) | (256) | (4,778) | (1,039) | ||||||||||||||||||
Pension and other | Pension and other | 5 | 5 | 22 | 29 | Pension and other | 5 | 5 | 13 | 22 | ||||||||||||||||||
Change in net debt valuation adjustment | Change in net debt valuation adjustment | 147 | (563) | 470 | 744 | Change in net debt valuation adjustment | 816 | 147 | 2,628 | 470 | ||||||||||||||||||
Total other comprehensive income (loss) | Total other comprehensive income (loss) | $ | (182) | $ | (510) | $ | (803) | $ | 2,330 | Total other comprehensive income (loss) | $ | (754) | $ | (182) | $ | (2,798) | $ | (803) | ||||||||||
Comprehensive income | Comprehensive income | $ | 3,542 | $ | 2,241 | $ | 10,601 | $ | 10,097 | Comprehensive income | $ | 1,908 | $ | 3,542 | $ | 6,115 | $ | 10,601 | ||||||||||
Net income applicable to noncontrolling interests | Net income applicable to noncontrolling interests | 17 | 34 | 66 | 156 | Net income applicable to noncontrolling interests | 30 | 17 | 120 | 66 | ||||||||||||||||||
Other comprehensive income (loss) applicable to noncontrolling interests | Other comprehensive income (loss) applicable to noncontrolling interests | (4) | 28 | (64) | 79 | Other comprehensive income (loss) applicable to noncontrolling interests | (17) | (4) | (142) | (64) | ||||||||||||||||||
Comprehensive income applicable to Morgan Stanley | Comprehensive income applicable to Morgan Stanley | $ | 3,529 | $ | 2,179 | $ | 10,599 | $ | 9,862 | Comprehensive income applicable to Morgan Stanley | $ | 1,895 | $ | 3,529 | $ | 6,137 | $ | 10,599 |
September | 36 | See Notes to Consolidated Financial Statements |
Consolidated Balance |
$ in millions, except share data | $ in millions, except share data | (Unaudited) At September 30, 2021 | At December 31, 2020 | $ in millions, except share data | (Unaudited) At September 30, 2022 | At December 31, 2021 | ||||||||||
Assets | Assets | Assets | ||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 123,863 | $ | 105,654 | Cash and cash equivalents | $ | 111,696 | $ | 127,725 | ||||||
Trading assets at fair value ($109,494 and $132,578 were pledged to various parties) | 315,161 | 312,738 | ||||||||||||||
Investment securities (includes $101,594 and $110,383 at fair value) | 183,431 | 182,154 | ||||||||||||||
Securities purchased under agreements to resell (includes $7 and $15 at fair value) | 119,721 | 116,234 | ||||||||||||||
Trading assets at fair value ($100,709 and $104,186 were pledged to various parties) | Trading assets at fair value ($100,709 and $104,186 were pledged to various parties) | 291,188 | 294,869 | |||||||||||||
Investment securities (includes $83,633 and $102,830 at fair value) | Investment securities (includes $83,633 and $102,830 at fair value) | 161,269 | 182,998 | |||||||||||||
Securities purchased under agreements to resell (includes $— and $7 at fair value) | Securities purchased under agreements to resell (includes $— and $7 at fair value) | 111,124 | 119,999 | |||||||||||||
Securities borrowed | Securities borrowed | 125,922 | 112,391 | Securities borrowed | 136,478 | 129,713 | ||||||||||
Customer and other receivables | Customer and other receivables | 98,353 | 97,737 | Customer and other receivables | 87,935 | 96,018 | ||||||||||
Loans: | Loans: | Loans: | ||||||||||||||
Held for investment (net of allowance for credit losses of $684 and $835) | 160,191 | 137,784 | ||||||||||||||
Held for investment (net of allowance for credit losses of $749 and $654) | Held for investment (net of allowance for credit losses of $749 and $654) | 197,583 | 174,302 | |||||||||||||
Held for sale | Held for sale | 13,168 | 12,813 | Held for sale | 13,353 | 13,832 | ||||||||||
Goodwill | Goodwill | 16,832 | 11,635 | Goodwill | 16,721 | 16,833 | ||||||||||
Intangible assets (net of accumulated amortization of $3,671 and $3,265) | 8,514 | 4,980 | ||||||||||||||
Intangible assets (net of accumulated amortization of $4,250 and $3,819) | Intangible assets (net of accumulated amortization of $4,250 and $3,819) | 7,893 | 8,360 | |||||||||||||
Other assets | Other assets | 25,320 | 21,742 | Other assets | 24,789 | 23,491 | ||||||||||
Total assets | Total assets | $ | 1,190,476 | $ | 1,115,862 | Total assets | $ | 1,160,029 | $ | 1,188,140 | ||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||
Deposits (includes $2,010 and $3,521 at fair value) | $ | 329,041 | $ | 310,782 | ||||||||||||
Deposits (includes $3,661 and $1,940 at fair value) | Deposits (includes $3,661 and $1,940 at fair value) | $ | 338,123 | $ | 347,574 | |||||||||||
Trading liabilities at fair value | Trading liabilities at fair value | 169,959 | 157,631 | Trading liabilities at fair value | 162,640 | 158,328 | ||||||||||
Securities sold under agreements to repurchase (includes $928 and $1,115 at fair value) | 61,987 | 50,587 | ||||||||||||||
Securities sold under agreements to repurchase (includes $951 and $791 at fair value) | Securities sold under agreements to repurchase (includes $951 and $791 at fair value) | 60,133 | 62,188 | |||||||||||||
Securities loaned | Securities loaned | 11,133 | 7,731 | Securities loaned | 13,097 | 12,299 | ||||||||||
Other secured financings (includes $5,614 and $11,701 at fair value) | 10,272 | 15,863 | ||||||||||||||
Other secured financings (includes $4,594 and $5,133 at fair value) | Other secured financings (includes $4,594 and $5,133 at fair value) | 7,701 | 10,041 | |||||||||||||
Customer and other payables | Customer and other payables | 240,319 | 227,437 | Customer and other payables | 229,463 | 228,685 | ||||||||||
Other liabilities and accrued expenses | Other liabilities and accrued expenses | 30,884 | 25,603 | Other liabilities and accrued expenses | 26,360 | 29,300 | ||||||||||
Borrowings (includes $75,752 and $73,701 at fair value) | 229,762 | 217,079 | ||||||||||||||
Borrowings (includes $68,788 and $76,340 at fair value) | Borrowings (includes $68,788 and $76,340 at fair value) | 220,423 | 233,127 | |||||||||||||
Total liabilities | Total liabilities | 1,083,357 | 1,012,713 | Total liabilities | 1,057,940 | 1,081,542 | ||||||||||
Commitments and contingent liabilities (see Note 14) | ||||||||||||||||
0Equity | ||||||||||||||||
Commitments and contingent liabilities (see Note 13) | Commitments and contingent liabilities (see Note 13) | |||||||||||||||
Equity | Equity | |||||||||||||||
Morgan Stanley shareholders’ equity: | Morgan Stanley shareholders’ equity: | Morgan Stanley shareholders’ equity: | ||||||||||||||
Preferred stock | Preferred stock | 7,750 | 9,250 | Preferred stock | 8,750 | 7,750 | ||||||||||
Common stock, $0.01 par value: | Common stock, $0.01 par value: | Common stock, $0.01 par value: | ||||||||||||||
Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,798,908,848 and 1,809,624,144 | 20 | 20 | ||||||||||||||
Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,694,051,265 and 1,772,226,530 | Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,694,051,265 and 1,772,226,530 | 20 | 20 | |||||||||||||
Additional paid-in capital | Additional paid-in capital | 28,504 | 25,546 | Additional paid-in capital | 28,893 | 28,841 | ||||||||||
Retained earnings | Retained earnings | 87,099 | 78,694 | Retained earnings | 94,055 | 89,432 | ||||||||||
Employee stock trusts | Employee stock trusts | 3,770 | 3,043 | Employee stock trusts | 4,860 | 3,955 | ||||||||||
Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) | (2,701) | (1,962) | Accumulated other comprehensive income (loss) | (5,758) | (3,102) | ||||||||||
Common stock held in treasury at cost, $0.01 par value (239,985,131 and 229,269,835 shares) | (14,769) | (9,767) | ||||||||||||||
Common stock held in treasury at cost, $0.01 par value (344,842,714 and 266,667,449 shares) | Common stock held in treasury at cost, $0.01 par value (344,842,714 and 266,667,449 shares) | (24,949) | (17,500) | |||||||||||||
Common stock issued to employee stock trusts | Common stock issued to employee stock trusts | (3,770) | (3,043) | Common stock issued to employee stock trusts | (4,860) | (3,955) | ||||||||||
Total Morgan Stanley shareholders’ equity | Total Morgan Stanley shareholders’ equity | 105,903 | 101,781 | Total Morgan Stanley shareholders’ equity | 101,011 | 105,441 | ||||||||||
Noncontrolling interests | Noncontrolling interests | 1,216 | 1,368 | Noncontrolling interests | 1,078 | 1,157 | ||||||||||
Total equity | Total equity | 107,119 | 103,149 | Total equity | 102,089 | 106,598 | ||||||||||
Total liabilities and equity | Total liabilities and equity | $ | 1,190,476 | $ | 1,115,862 | Total liabilities and equity | $ | 1,160,029 | $ | 1,188,140 |
See Notes to Consolidated Financial Statements | 37 | September |
Consolidated (Unaudited) |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Preferred Stock | Preferred Stock | Preferred Stock | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 7,750 | $ | 8,520 | $ | 9,250 | $ | 8,520 | Beginning balance | $ | 7,750 | $ | 7,750 | $ | 7,750 | $ | 9,250 | ||||||||||
Redemption of Series J preferred stock | — | — | (1,500) | — | ||||||||||||||||||||||||
Issuance of preferred stock | Issuance of preferred stock | 1,000 | — | 1,000 | — | |||||||||||||||||||||||
Redemption of preferred stock | Redemption of preferred stock | — | — | — | (1,500) | |||||||||||||||||||||||
Ending balance | Ending balance | 7,750 | 8,520 | 7,750 | 8,520 | Ending balance | 8,750 | 7,750 | 8,750 | 7,750 | ||||||||||||||||||
Common Stock | Common Stock | Common Stock | ||||||||||||||||||||||||||
Beginning and ending balance | Beginning and ending balance | 20 | 20 | 20 | 20 | Beginning and ending balance | 20 | 20 | 20 | 20 | ||||||||||||||||||
Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | 28,030 | 23,782 | 25,546 | 23,935 | Beginning balance | 28,394 | 28,030 | 28,841 | 25,546 | ||||||||||||||||||
Share-based award activity | Share-based award activity | 473 | 232 | 765 | 79 | Share-based award activity | 505 | 473 | 57 | 765 | ||||||||||||||||||
Issuance of preferred stock | Issuance of preferred stock | (6) | — | (6) | — | |||||||||||||||||||||||
Issuance of common stock for the acquisition of Eaton Vance | Issuance of common stock for the acquisition of Eaton Vance | — | — | 2,185 | — | Issuance of common stock for the acquisition of Eaton Vance | — | — | — | 2,185 | ||||||||||||||||||
Other net increases (decreases) | Other net increases (decreases) | 1 | 1 | 8 | 1 | Other net increases (decreases) | — | 1 | 1 | 8 | ||||||||||||||||||
Ending balance | Ending balance | 28,504 | 24,015 | 28,504 | 24,015 | Ending balance | 28,893 | 28,504 | 28,893 | 28,504 | ||||||||||||||||||
Retained Earnings | Retained Earnings | Retained Earnings | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | 84,791 | 74,015 | 78,694 | 70,589 | Beginning balance | 92,889 | 84,791 | 89,432 | 78,694 | ||||||||||||||||||
Cumulative adjustment related to the adoption of financial instruments-credit losses accounting update1 | — | — | — | (100) | ||||||||||||||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | 3,707 | 2,717 | 11,338 | 7,611 | Net income applicable to Morgan Stanley | 2,632 | 3,707 | 8,793 | 11,338 | ||||||||||||||||||
Preferred stock dividends2 | (123) | (120) | (364) | (377) | ||||||||||||||||||||||||
Common stock dividends2 | (1,276) | (551) | (2,562) | (1,662) | ||||||||||||||||||||||||
Preferred stock dividends1 | Preferred stock dividends1 | (138) | (123) | (366) | (364) | |||||||||||||||||||||||
Common stock dividends1 | Common stock dividends1 | (1,329) | (1,276) | (3,802) | (2,562) | |||||||||||||||||||||||
Other net increases (decreases) | Other net increases (decreases) | — | — | (7) | — | Other net increases (decreases) | 1 | — | (2) | (7) | ||||||||||||||||||
Ending balance | Ending balance | 87,099 | 76,061 | 87,099 | 76,061 | Ending balance | 94,055 | 87,099 | 94,055 | 87,099 | ||||||||||||||||||
Employee Stock Trusts | Employee Stock Trusts | Employee Stock Trusts | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | 3,768 | 3,018 | 3,043 | 2,918 | Beginning balance | 4,900 | 3,768 | 3,955 | 3,043 | ||||||||||||||||||
Share-based award activity | Share-based award activity | 2 | (26) | 727 | 74 | Share-based award activity | (40) | 2 | 905 | 727 | ||||||||||||||||||
Ending balance | Ending balance | 3,770 | 2,992 | 3,770 | 2,992 | Ending balance | 4,860 | 3,770 | 4,860 | 3,770 | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | (2,523) | 1 | (1,962) | (2,788) | Beginning balance | (5,021) | (2,523) | (3,102) | (1,962) | ||||||||||||||||||
Net change in Accumulated other comprehensive income (loss) | Net change in Accumulated other comprehensive income (loss) | (178) | (538) | (739) | 2,251 | Net change in Accumulated other comprehensive income (loss) | (737) | (178) | (2,656) | (739) | ||||||||||||||||||
Ending balance | Ending balance | (2,701) | (537) | (2,701) | (537) | Ending balance | (5,758) | (2,701) | (5,758) | (2,701) | ||||||||||||||||||
Common Stock Held in Treasury at Cost | Common Stock Held in Treasury at Cost | Common Stock Held in Treasury at Cost | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | (11,198) | (19,693) | (9,767) | (18,727) | Beginning balance | (22,436) | (11,198) | (17,500) | (9,767) | ||||||||||||||||||
Share-based award activity | Share-based award activity | 57 | 38 | 1,094 | 882 | Share-based award activity | 95 | 57 | 1,677 | 1,094 | ||||||||||||||||||
Repurchases of common stock and employee tax withholdings | Repurchases of common stock and employee tax withholdings | (3,628) | (30) | (9,228) | (1,840) | Repurchases of common stock and employee tax withholdings | (2,608) | (3,628) | (9,126) | (9,228) | ||||||||||||||||||
Issuance of common stock for the acquisition of Eaton Vance | Issuance of common stock for the acquisition of Eaton Vance | — | — | 3,132 | — | Issuance of common stock for the acquisition of Eaton Vance | — | — | — | 3,132 | ||||||||||||||||||
Ending balance | Ending balance | (14,769) | (19,685) | (14,769) | (19,685) | Ending balance | (24,949) | (14,769) | (24,949) | (14,769) | ||||||||||||||||||
Common Stock Issued to Employee Stock Trusts | Common Stock Issued to Employee Stock Trusts | Common Stock Issued to Employee Stock Trusts | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | (3,768) | (3,018) | (3,043) | (2,918) | Beginning balance | (4,900) | (3,768) | (3,955) | (3,043) | ||||||||||||||||||
Share-based award activity | Share-based award activity | (2) | 26 | (727) | (74) | Share-based award activity | 40 | (2) | (905) | (727) | ||||||||||||||||||
Ending balance | Ending balance | (3,770) | (2,992) | (3,770) | (2,992) | Ending balance | (4,860) | (3,770) | (4,860) | (3,770) | ||||||||||||||||||
Noncontrolling Interests | Noncontrolling Interests | Noncontrolling Interests | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | 1,292 | 1,364 | 1,368 | 1,148 | Beginning balance | 1,066 | 1,292 | 1,157 | 1,368 | ||||||||||||||||||
Net income applicable to noncontrolling interests | Net income applicable to noncontrolling interests | 17 | 34 | 66 | 156 | Net income applicable to noncontrolling interests | 30 | 17 | 120 | 66 | ||||||||||||||||||
Net change in Accumulated other comprehensive income (loss) applicable to noncontrolling interests | Net change in Accumulated other comprehensive income (loss) applicable to noncontrolling interests | (4) | 28 | (64) | 79 | Net change in Accumulated other comprehensive income (loss) applicable to noncontrolling interests | (17) | (4) | (142) | (64) | ||||||||||||||||||
Other net increases (decreases) | Other net increases (decreases) | (89) | (2) | (154) | 41 | Other net increases (decreases) | (1) | (89) | (57) | (154) | ||||||||||||||||||
Ending balance | Ending balance | 1,216 | 1,424 | 1,216 | 1,424 | Ending balance | 1,078 | 1,216 | 1,078 | 1,216 | ||||||||||||||||||
Total Equity | Total Equity | $ | 107,119 | $ | 89,818 | $ | 107,119 | $ | 89,818 | Total Equity | $ | 102,089 | $ | 107,119 | $ | 102,089 | $ | 107,119 |
September | 38 | See Notes to Consolidated Financial Statements |
Consolidated Cash Flow (Unaudited) |
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | $ in millions | 2022 | 2021 | ||||||||||
Cash flows from operating activities | Cash flows from operating activities | Cash flows from operating activities | ||||||||||||||
Net income | Net income | $ | 11,404 | $ | 7,767 | Net income | $ | 8,913 | $ | 11,404 | ||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | Adjustments to reconcile net income to net cash provided by (used for) operating activities: | Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||||||||
Stock-based compensation expense | Stock-based compensation expense | 1,636 | 802 | Stock-based compensation expense | 1,377 | 1,636 | ||||||||||
Depreciation and amortization | Depreciation and amortization | 2,979 | 2,363 | Depreciation and amortization | 2,791 | 2,979 | ||||||||||
Provision for credit losses | Provision for credit losses | (1) | 757 | Provision for credit losses | 193 | (1) | ||||||||||
Other operating adjustments | Other operating adjustments | (149) | 663 | Other operating adjustments | 508 | (149) | ||||||||||
Changes in assets and liabilities: | Changes in assets and liabilities: | Changes in assets and liabilities: | ||||||||||||||
Trading assets, net of Trading liabilities | Trading assets, net of Trading liabilities | 2,832 | 18,442 | Trading assets, net of Trading liabilities | (23,285) | 2,832 | ||||||||||
Securities borrowed | Securities borrowed | (13,531) | 5,746 | Securities borrowed | (6,765) | (13,531) | ||||||||||
Securities loaned | Securities loaned | 3,402 | (582) | Securities loaned | 798 | 3,402 | ||||||||||
Customer and other receivables and other assets | Customer and other receivables and other assets | (2,692) | (17,098) | Customer and other receivables and other assets | 7,966 | (2,692) | ||||||||||
Customer and other payables and other liabilities | Customer and other payables and other liabilities | 19,829 | (5,818) | Customer and other payables and other liabilities | 8,283 | 19,829 | ||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | (3,487) | (59) | Securities purchased under agreements to resell | 8,875 | (3,487) | ||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | 11,400 | (12,824) | Securities sold under agreements to repurchase | (2,055) | 11,400 | ||||||||||
Net cash provided by (used for) operating activities | Net cash provided by (used for) operating activities | 33,622 | 159 | Net cash provided by (used for) operating activities | 7,599 | 33,622 | ||||||||||
Cash flows from investing activities | Cash flows from investing activities | Cash flows from investing activities | ||||||||||||||
Proceeds from (payments for): | Proceeds from (payments for): | Proceeds from (payments for): | ||||||||||||||
Other assets—Premises, equipment and software, net | Other assets—Premises, equipment and software, net | (1,658) | (905) | Other assets—Premises, equipment and software, net | (2,308) | (1,658) | ||||||||||
Changes in loans, net | Changes in loans, net | (23,197) | (13,592) | Changes in loans, net | (23,280) | (23,197) | ||||||||||
Investment securities: | ||||||||||||||||
AFS securities1: | AFS securities1: | |||||||||||||||
Purchases | Purchases | (57,334) | (41,147) | Purchases | (22,636) | (32,483) | ||||||||||
Proceeds from sales | Proceeds from sales | 18,325 | 7,220 | Proceeds from sales | 21,922 | 18,325 | ||||||||||
Proceeds from paydowns and maturities | Proceeds from paydowns and maturities | 11,682 | 21,508 | |||||||||||||
HTM securities1: | HTM securities1: | |||||||||||||||
Purchases | Purchases | (5,231) | (24,851) | |||||||||||||
Proceeds from paydowns and maturities | Proceeds from paydowns and maturities | 32,368 | 11,240 | Proceeds from paydowns and maturities | 7,837 | 10,860 | ||||||||||
Cash paid as part of the Eaton Vance acquisition, net of cash acquired | Cash paid as part of the Eaton Vance acquisition, net of cash acquired | (2,648) | — | Cash paid as part of the Eaton Vance acquisition, net of cash acquired | — | (2,648) | ||||||||||
Other investing activities | Other investing activities | (447) | (254) | Other investing activities | (516) | (447) | ||||||||||
Net cash provided by (used for) investing activities | Net cash provided by (used for) investing activities | (34,591) | (37,438) | Net cash provided by (used for) investing activities | (12,530) | (34,591) | ||||||||||
Cash flows from financing activities | Cash flows from financing activities | Cash flows from financing activities | ||||||||||||||
Net proceeds from (payments for): | Net proceeds from (payments for): | Net proceeds from (payments for): | ||||||||||||||
Other secured financings | Other secured financings | (1,125) | 229 | Other secured financings | (1,352) | (1,125) | ||||||||||
Deposits | Deposits | 18,347 | 48,734 | Deposits | (16,816) | 18,347 | ||||||||||
Issuance of preferred stock, net of issuance costs | Issuance of preferred stock, net of issuance costs | 994 | — | |||||||||||||
Proceeds from issuance of Borrowings | Proceeds from issuance of Borrowings | 73,591 | 42,169 | Proceeds from issuance of Borrowings | 54,283 | 73,591 | ||||||||||
Payments for: | Payments for: | Payments for: | ||||||||||||||
Borrowings | Borrowings | (56,699) | (38,151) | Borrowings | (27,019) | (56,699) | ||||||||||
Repurchases of common stock and employee tax withholdings | Repurchases of common stock and employee tax withholdings | (9,228) | (1,840) | Repurchases of common stock and employee tax withholdings | (9,126) | (9,228) | ||||||||||
Cash dividends | Cash dividends | (2,857) | (2,008) | Cash dividends | (4,023) | (2,857) | ||||||||||
Other financing activities | Other financing activities | (197) | (208) | Other financing activities | (202) | (197) | ||||||||||
Net cash provided by (used for) financing activities | Net cash provided by (used for) financing activities | 21,832 | 48,925 | Net cash provided by (used for) financing activities | (3,261) | 21,832 | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | Effect of exchange rate changes on cash and cash equivalents | (2,654) | 955 | Effect of exchange rate changes on cash and cash equivalents | (7,837) | (2,654) | ||||||||||
Net increase (decrease) in cash and cash equivalents | Net increase (decrease) in cash and cash equivalents | 18,209 | 12,601 | Net increase (decrease) in cash and cash equivalents | (16,029) | 18,209 | ||||||||||
Cash and cash equivalents, at beginning of period | Cash and cash equivalents, at beginning of period | 105,654 | 82,171 | Cash and cash equivalents, at beginning of period | 127,725 | 105,654 | ||||||||||
Cash and cash equivalents, at end of period | Cash and cash equivalents, at end of period | $ | 123,863 | $ | 94,772 | Cash and cash equivalents, at end of period | $ | 111,696 | $ | 123,863 | ||||||
Supplemental Disclosure of Cash Flow Information | Supplemental Disclosure of Cash Flow Information | Supplemental Disclosure of Cash Flow Information | ||||||||||||||
Cash payments for: | Cash payments for: | Cash payments for: | ||||||||||||||
Interest | Interest | $ | 1,236 | $ | 3,747 | Interest | $ | 4,339 | $ | 1,236 | ||||||
Income taxes, net of refunds | Income taxes, net of refunds | 3,303 | 1,675 | Income taxes, net of refunds | 2,805 | 3,303 |
See Notes to Consolidated Financial Statements | 39 | September |
Notes to Consolidated Financial Statements (Unaudited) |
September | 40 |
Notes to Consolidated Financial Statements (Unaudited) |
$ in millions | At September 30, 2022 | At December 31, 2021 | ||||||
Cash and due from banks | $ | 6,836 | $ | 8,394 | ||||
Interest bearing deposits with banks | 104,860 | 119,331 | ||||||
Total Cash and cash equivalents | $ | 111,696 | $ | 127,725 | ||||
Restricted cash | $ | 40,413 | $ | 40,887 |
At September 30, 2022 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Assets at fair value | |||||||||||||||||
Trading assets: | |||||||||||||||||
U.S. Treasury and agency securities | $ | 37,694 | $ | 29,822 | $ | 1 | $ | — | $ | 67,517 | |||||||
Other sovereign government obligations | 27,618 | 5,411 | 137 | — | 33,166 | ||||||||||||
State and municipal securities | — | 2,259 | 52 | — | 2,311 | ||||||||||||
MABS | — | 2,090 | 344 | — | 2,434 | ||||||||||||
Loans and lending commitments2 | — | 4,929 | 2,583 | — | 7,512 | ||||||||||||
Corporate and other debt | — | 24,936 | 1,898 | — | 26,834 | ||||||||||||
Corporate equities3 | 74,566 | 1,043 | 145 | — | 75,754 | ||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate | 18,630 | 173,134 | 768 | — | 192,532 | ||||||||||||
Credit | — | 10,294 | 474 | — | 10,768 | ||||||||||||
Foreign exchange | 56 | 167,919 | 269 | — | 168,244 | ||||||||||||
Equity | 1,736 | 59,409 | 531 | — | 61,676 | ||||||||||||
Commodity and other | 11,660 | 31,216 | 4,134 | — | 47,010 | ||||||||||||
Netting1 | (15,435) | (328,762) | (1,363) | (68,420) | (413,980) | ||||||||||||
Total derivative and other contracts | 16,647 | 113,210 | 4,813 | (68,420) | 66,250 | ||||||||||||
Investments4 | 588 | 716 | 873 | — | 2,177 | ||||||||||||
Physical commodities | — | 1,924 | — | — | 1,924 | ||||||||||||
Total trading assets4 | 157,113 | 186,340 | 10,846 | (68,420) | 285,879 | ||||||||||||
Investment securities—AFS | 53,618 | 29,979 | 36 | — | 83,633 | ||||||||||||
Total assets at fair value | $ | 210,731 | $ | 216,319 | $ | 10,882 | $ | (68,420) | $ | 369,512 |
At September 30, 2022 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Liabilities at fair value | |||||||||||||||||
Deposits | $ | — | $ | 3,654 | $ | 7 | $ | — | $ | 3,661 | |||||||
Trading liabilities: | |||||||||||||||||
U.S. Treasury and agency securities | 15,842 | 8 | 1 | — | 15,851 | ||||||||||||
Other sovereign government obligations | 19,215 | 2,398 | 12 | — | 21,625 | ||||||||||||
Corporate and other debt | — | 9,993 | 23 | — | 10,016 | ||||||||||||
Corporate equities3 | 66,268 | 564 | 54 | — | 66,886 | ||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate | 16,043 | 166,207 | 945 | — | 183,195 | ||||||||||||
Credit | — | 10,079 | 352 | — | 10,431 | ||||||||||||
Foreign exchange | 57 | 159,478 | 94 | — | 159,629 | ||||||||||||
Equity | 1,868 | 66,950 | 987 | — | 69,805 | ||||||||||||
Commodity and other | 12,669 | 24,561 | 2,333 | — | 39,563 | ||||||||||||
Netting1 | (15,435) | (328,762) | (1,363) | (68,801) | (414,361) | ||||||||||||
Total derivative and other contracts | 15,202 | 98,513 | 3,348 | (68,801) | 48,262 | ||||||||||||
Total trading liabilities | 116,527 | 111,476 | 3,438 | (68,801) | 162,640 | ||||||||||||
Securities sold under agreements to repurchase | — | 443 | 508 | — | 951 | ||||||||||||
Other secured financings | — | 4,481 | 113 | — | 4,594 | ||||||||||||
Borrowings | — | 66,851 | 1,937 | — | 68,788 | ||||||||||||
Total liabilities at fair value | $ | 116,527 | $ | 186,905 | $ | 6,003 | $ | (68,801) | $ | 240,634 |
March 1, 2021 | |||||
$ in millions | Weighted average life (years) | At March 1, 2021 | ||||||
Non-amortizable | ||||||||
Management contracts | indefinite | $ | 2,120 | |||||
Amortizable | ||||||||
Customer relationships | 16 | 1,455 | ||||||
Tradenames | 23 | 221 | ||||||
Management contracts | 16 | 160 | ||||||
Total acquired Intangible assets | $ | 3,956 |
$ in millions | Three Months Ended September 30, 2021 | Nine Months Ended September 30, 20211 | ||||||
Net revenues | $ | 549 | $ | 1,258 | ||||
Net income | 137 | 287 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 20211 | 2020 | 2021 | 2020 | ||||||||||
Net revenues | $ | 14,753 | $ | 12,072 | $ | 45,527 | $ | 36,313 | ||||||
Net income | 3,724 | 2,729 | 11,504 | 7,420 |
At December 31, 2021 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Assets at fair value | |||||||||||||||||
Trading assets: | |||||||||||||||||
U.S. Treasury and agency securities | $ | 45,970 | $ | 29,749 | $ | 2 | $ | — | $ | 75,721 | |||||||
Other sovereign government obligations | 28,041 | 4,533 | 211 | — | 32,785 | ||||||||||||
State and municipal securities | — | 1,905 | 13 | — | 1,918 | ||||||||||||
MABS | — | 1,237 | 344 | — | 1,581 | ||||||||||||
Loans and lending commitments2 | — | 8,821 | 3,806 | — | 12,627 | ||||||||||||
Corporate and other debt | — | 27,309 | 1,973 | — | 29,282 | ||||||||||||
Corporate equities3 | 91,630 | 832 | 115 | — | 92,577 | ||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate | 1,364 | 153,048 | 1,153 | — | 155,565 | ||||||||||||
Credit | — | 8,441 | 509 | — | 8,950 | ||||||||||||
Foreign exchange | 28 | 74,571 | 132 | — | 74,731 | ||||||||||||
Equity | 1,562 | 68,519 | 251 | — | 70,332 | ||||||||||||
Commodity and other | 4,462 | 20,194 | 3,057 | — | 27,713 | ||||||||||||
Netting1 | (5,696) | (241,814) | (794) | (50,833) | (299,137) | ||||||||||||
Total derivative and other contracts | 1,720 | 82,959 | 4,308 | (50,833) | 38,154 | ||||||||||||
Investments4 | 735 | 846 | 1,125 | — | 2,706 | ||||||||||||
Physical commodities | — | 2,771 | — | — | 2,771 | ||||||||||||
Total trading assets4 | 168,096 | 160,962 | 11,897 | (50,833) | 290,122 | ||||||||||||
Investment securities—AFS | 59,021 | 43,809 | — | — | 102,830 | ||||||||||||
Securities purchased under agreements to resell | — | 7 | — | — | 7 | ||||||||||||
Total assets at fair value | $ | 227,117 | $ | 204,778 | $ | 11,897 | $ | (50,833) | $ | 392,959 |
41 | September |
Notes to Consolidated Financial Statements (Unaudited) |
$ in millions | At September 30, 2021 | At December 31, 2020 | ||||||
Cash and due from banks | $ | 10,216 | $ | 9,792 | ||||
Interest bearing deposits with banks | 113,647 | 95,862 | ||||||
Total Cash and cash equivalents | $ | 123,863 | $ | 105,654 | ||||
Restricted cash | $ | 43,829 | $ | 38,202 |
At September 30, 2021 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Assets at fair value | |||||||||||||||||
Trading assets: | |||||||||||||||||
U.S. Treasury and agency securities | $ | 44,238 | $ | 26,312 | $ | 4 | $ | — | $ | 70,554 | |||||||
Other sovereign government obligations | 32,668 | 5,246 | 127 | — | 38,041 | ||||||||||||
State and municipal securities | — | 1,960 | — | — | 1,960 | ||||||||||||
MABS | — | 1,249 | 366 | — | 1,615 | ||||||||||||
Loans and lending commitments2 | — | 10,611 | 4,304 | — | 14,915 | ||||||||||||
Corporate and other debt | — | 31,242 | 1,563 | — | 32,805 | ||||||||||||
Corporate equities3 | 100,903 | 1,126 | 214 | — | 102,243 | ||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate | 3,382 | 158,164 | 1,311 | — | 162,857 | ||||||||||||
Credit | — | 9,063 | 510 | — | 9,573 | ||||||||||||
Foreign exchange | 32 | 73,464 | 147 | — | 73,643 | ||||||||||||
Equity | 1,211 | 69,495 | 464 | — | 71,170 | ||||||||||||
Commodity and other | 12,547 | 27,294 | 2,882 | — | 42,723 | ||||||||||||
Netting1 | (15,382) | (248,815) | (869) | (51,501) | (316,567) | ||||||||||||
Total derivative and other contracts | 1,790 | 88,665 | 4,445 | (51,501) | 43,399 | ||||||||||||
Investments4 | 795 | 648 | 781 | — | 2,224 | ||||||||||||
Physical commodities | — | 3,049 | — | — | 3,049 | ||||||||||||
Total trading assets4 | 180,394 | 170,108 | 11,804 | (51,501) | 310,805 | ||||||||||||
Investment securities—AFS | 55,839 | 45,755 | — | — | 101,594 | ||||||||||||
Securities purchased under agreements to resell | — | 7 | — | — | 7 | ||||||||||||
Total assets at fair value | $ | 236,233 | $ | 215,870 | $ | 11,804 | $ | (51,501) | $ | 412,406 |
At September 30, 2021 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Liabilities at fair value | |||||||||||||||||
Deposits | $ | — | $ | 1,948 | $ | 62 | $ | — | $ | 2,010 | |||||||
Trading liabilities: | |||||||||||||||||
U.S. Treasury and agency securities | 19,623 | 1,142 | — | — | 20,765 | ||||||||||||
Other sovereign government obligations | 23,194 | 1,814 | 3 | — | 25,011 | ||||||||||||
Corporate and other debt | — | 10,565 | 5 | — | 10,570 | ||||||||||||
Corporate equities3 | 74,549 | 314 | 34 | — | 74,897 | ||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate | 3,251 | 148,188 | 515 | — | 151,954 | ||||||||||||
Credit | — | 9,671 | 544 | — | 10,215 | ||||||||||||
Foreign exchange | 35 | 69,491 | 50 | — | 69,576 | ||||||||||||
Equity | 1,477 | 80,045 | 1,464 | — | 82,986 | ||||||||||||
Commodity and other | 12,445 | 23,170 | 1,573 | — | 37,188 | ||||||||||||
Netting1 | (15,382) | (248,815) | (869) | (48,137) | (313,203) | ||||||||||||
Total derivative and other contracts | 1,826 | 81,750 | 3,277 | (48,137) | 38,716 | ||||||||||||
Total trading liabilities | 119,192 | 95,585 | 3,319 | (48,137) | 169,959 | ||||||||||||
Securities sold under agreements to repurchase | — | 480 | 448 | — | 928 | ||||||||||||
Other secured financings | — | 5,219 | 395 | — | 5,614 | ||||||||||||
Borrowings | — | 73,696 | 2,056 | — | 75,752 | ||||||||||||
Total liabilities at fair value | $ | 119,192 | $ | 176,928 | $ | 6,280 | $ | (48,137) | $ | 254,263 |
(Unaudited) |
At December 31, 2020 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Assets at fair value | |||||||||||||||||
Trading assets: | |||||||||||||||||
U.S. Treasury and agency securities | $ | 43,084 | $ | 31,524 | $ | 9 | $ | — | $ | 74,617 | |||||||
Other sovereign government obligations | 26,174 | 5,048 | 268 | — | 31,490 | ||||||||||||
State and municipal securities | — | 1,135 | — | — | 1,135 | ||||||||||||
MABS | — | 1,070 | 322 | — | 1,392 | ||||||||||||
Loans and lending commitments2 | — | 5,389 | 5,759 | — | 11,148 | ||||||||||||
Corporate and other debt | — | 30,093 | 3,435 | — | 33,528 | ||||||||||||
Corporate equities3 | 111,575 | 1,142 | 86 | — | 112,803 | ||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate | 4,458 | 227,818 | 1,210 | — | 233,486 | ||||||||||||
Credit | — | 6,840 | 701 | — | 7,541 | ||||||||||||
Foreign exchange | 29 | 93,770 | 260 | — | 94,059 | ||||||||||||
Equity | 1,132 | 65,943 | 1,369 | — | 68,444 | ||||||||||||
Commodity and other | 1,818 | 10,108 | 2,723 | — | 14,649 | ||||||||||||
Netting1 | (5,488) | (310,534) | (1,351) | (62,956) | (380,329) | ||||||||||||
Total derivative and other contracts | 1,949 | 93,945 | 4,912 | (62,956) | 37,850 | ||||||||||||
Investments4 | 624 | 234 | 828 | — | 1,686 | ||||||||||||
Physical commodities | — | 3,260 | — | — | 3,260 | ||||||||||||
Total trading assets4 | 183,406 | 172,840 | 15,619 | (62,956) | 308,909 | ||||||||||||
Investment securities—AFS | 46,354 | 61,225 | 2,804 | — | 110,383 | ||||||||||||
Securities purchased under agreements to resell | — | 12 | 3 | — | 15 | ||||||||||||
Total assets at fair value | $ | 229,760 | $ | 234,077 | $ | 18,426 | $ | (62,956) | $ | 419,307 |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | $ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||||||||||||
Liabilities at fair value | Liabilities at fair value | Liabilities at fair value | ||||||||||||||||||||||||||||||||
Deposits | Deposits | $ | — | $ | 3,395 | $ | 126 | $ | — | $ | 3,521 | Deposits | $ | — | $ | 1,873 | $ | 67 | $ | — | $ | 1,940 | ||||||||||||
Trading liabilities: | Trading liabilities: | Trading liabilities: | ||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | U.S. Treasury and agency securities | 10,204 | 1 | — | — | 10,205 | U.S. Treasury and agency securities | 16,433 | 319 | — | — | 16,752 | ||||||||||||||||||||||
Other sovereign government obligations | Other sovereign government obligations | 24,209 | 1,738 | 16 | — | 25,963 | Other sovereign government obligations | 20,771 | 2,062 | — | — | 22,833 | ||||||||||||||||||||||
Corporate and other debt | Corporate and other debt | — | 8,468 | — | — | 8,468 | Corporate and other debt | — | 8,707 | 16 | — | 8,723 | ||||||||||||||||||||||
Corporate equities3 | Corporate equities3 | 67,822 | 172 | 63 | — | 68,057 | Corporate equities3 | 75,181 | 226 | 45 | — | 75,452 | ||||||||||||||||||||||
Derivative and other contracts: | Derivative and other contracts: | Derivative and other contracts: | ||||||||||||||||||||||||||||||||
Interest rate | Interest rate | 4,789 | 213,321 | 528 | — | 218,638 | Interest rate | 1,087 | 145,670 | 445 | — | 147,202 | ||||||||||||||||||||||
Credit | Credit | — | 7,500 | 652 | — | 8,152 | Credit | — | 9,090 | 411 | — | 9,501 | ||||||||||||||||||||||
Foreign exchange | Foreign exchange | 11 | 94,698 | 199 | — | 94,908 | Foreign exchange | 19 | 73,096 | 80 | — | 73,195 | ||||||||||||||||||||||
Equity | Equity | 1,245 | 81,683 | 3,600 | — | 86,528 | Equity | 2,119 | 77,363 | 1,196 | — | 80,678 | ||||||||||||||||||||||
Commodity and other | Commodity and other | 1,758 | 9,418 | 1,014 | — | 12,190 | Commodity and other | 4,563 | 16,837 | 1,528 | — | 22,928 | ||||||||||||||||||||||
Netting1 | Netting1 | (5,488) | (310,534) | (1,351) | (58,105) | (375,478) | Netting1 | (5,696) | (241,814) | (794) | (50,632) | (298,936) | ||||||||||||||||||||||
Total derivative and other contracts | Total derivative and other contracts | 2,315 | 96,086 | 4,642 | (58,105) | 44,938 | Total derivative and other contracts | 2,092 | 80,242 | 2,866 | (50,632) | 34,568 | ||||||||||||||||||||||
Total trading liabilities | Total trading liabilities | 104,550 | 106,465 | 4,721 | (58,105) | 157,631 | Total trading liabilities | 114,477 | 91,556 | 2,927 | (50,632) | 158,328 | ||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | — | 671 | 444 | — | 1,115 | Securities sold under agreements to repurchase | — | 140 | 651 | — | 791 | ||||||||||||||||||||||
Other secured financings | Other secured financings | — | 11,185 | 516 | — | 11,701 | Other secured financings | — | 4,730 | 403 | — | 5,133 | ||||||||||||||||||||||
Borrowings | Borrowings | — | 69,327 | 4,374 | — | 73,701 | Borrowings | — | 74,183 | 2,157 | — | 76,340 | ||||||||||||||||||||||
Total liabilities at fair value | Total liabilities at fair value | $ | 104,550 | $ | 191,043 | $ | 10,181 | $ | (58,105) | $ | 247,669 | Total liabilities at fair value | $ | 114,477 | $ | 172,482 | $ | 6,205 | $ | (50,632) | $ | 242,532 |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Corporate | Corporate | $ | 13 | $ | 13 | Corporate | $ | — | $ | 8 | ||||||
Secured lending facilities | Secured lending facilities | 350 | 648 | Secured lending facilities | 7 | — | ||||||||||
Commercial Real Estate | Commercial Real Estate | 2,418 | 916 | Commercial Real Estate | 476 | 863 | ||||||||||
Residential Real Estate | Residential Real Estate | 3,118 | 2,145 | Residential Real Estate | 1,568 | 3,911 | ||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | 9,016 | 7,426 | Securities-based lending and Other loans | 5,461 | 7,845 | ||||||||||
Total | Total | $ | 14,915 | $ | 11,148 | Total | $ | 7,512 | $ | 12,627 |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Customer and other receivables (payables), net | Customer and other receivables (payables), net | $ | (26) | $ | 434 | Customer and other receivables (payables), net | $ | 693 | $ | 948 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||
U.S. Treasury and agency securities | ||||||||||||||
Beginning balance | $ | 9 | $ | 25 | $ | 2 | $ | 9 | ||||||
Realized and unrealized gains (losses) | — | (1) | (1) | — | ||||||||||
Purchases | 1 | 4 | 2 | 28 | ||||||||||
Sales | (4) | (24) | (7) | (33) | ||||||||||
Net transfers | (5) | — | 5 | — | ||||||||||
Ending balance | $ | 1 | $ | 4 | $ | 1 | $ | 4 | ||||||
Unrealized gains (losses) | $ | — | $ | (1) | $ | (1) | $ | — | ||||||
Other sovereign government obligations | ||||||||||||||
Beginning balance | $ | 161 | $ | 78 | $ | 211 | $ | 268 | ||||||
Realized and unrealized gains (losses) | 23 | (3) | (24) | (1) | ||||||||||
Purchases | 43 | 59 | 69 | 129 | ||||||||||
Sales | (57) | (4) | (60) | (269) | ||||||||||
Net transfers | (33) | (3) | (59) | — | ||||||||||
Ending balance | $ | 137 | $ | 127 | $ | 137 | $ | 127 | ||||||
Unrealized gains (losses) | $ | 23 | $ | (3) | $ | (22) | $ | — | ||||||
State and municipal securities | ||||||||||||||
Beginning balance | $ | 29 | $ | 4 | $ | 13 | $ | — | ||||||
Realized and unrealized gains (losses) | (1) | — | (2) | — | ||||||||||
Purchases | 4 | — | 54 | 4 | ||||||||||
Sales | — | (4) | — | (4) | ||||||||||
Net transfers | 20 | — | (13) | — | ||||||||||
Ending balance | $ | 52 | $ | — | $ | 52 | $ | — | ||||||
Unrealized gains (losses) | $ | (3) | $ | — | $ | (2) | $ | — | ||||||
MABS | ||||||||||||||
Beginning balance | $ | 339 | $ | 357 | $ | 344 | $ | 322 | ||||||
Realized and unrealized gains (losses) | 8 | 11 | (366) | 67 | ||||||||||
Purchases | 3 | 96 | 448 | 263 | ||||||||||
Sales | (33) | (23) | (116) | (216) | ||||||||||
Net transfers | 27 | (75) | 34 | (70) | ||||||||||
Ending balance | $ | 344 | $ | 366 | $ | 344 | $ | 366 | ||||||
Unrealized gains (losses) | $ | 9 | $ | 11 | $ | (12) | $ | 8 | ||||||
Loans and lending commitments | ||||||||||||||
Beginning balance | $ | 2,507 | $ | 4,896 | $ | 3,806 | $ | 5,759 | ||||||
Realized and unrealized gains (losses) | (26) | 47 | 8 | 33 | ||||||||||
Purchases and originations | 541 | 1,373 | 800 | 2,467 | ||||||||||
Sales | (353) | (768) | (801) | (2,314) | ||||||||||
Settlements | (144) | (414) | (618) | (1,082) | ||||||||||
Net transfers1 | 58 | (830) | (612) | (559) | ||||||||||
Ending balance | $ | 2,583 | $ | 4,304 | $ | 2,583 | $ | 4,304 | ||||||
Unrealized gains (losses) | $ | (27) | $ | 21 | $ | — | $ | (5) |
September 2022 Form 10-Q | 42 |
Notes to Consolidated Financial Statements (Unaudited) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Corporate and other debt | ||||||||||||||
Beginning balance | $ | 2,113 | $ | 1,801 | $ | 1,973 | $ | 3,435 | ||||||
Realized and unrealized gains (losses) | (43) | 173 | 446 | (151) | ||||||||||
Purchases and originations | 132 | 639 | 752 | 1,505 | ||||||||||
Sales | (528) | (594) | (1,400) | (1,698) | ||||||||||
Settlements | (30) | — | (26) | — | ||||||||||
Net transfers2 | 254 | (456) | 153 | (1,528) | ||||||||||
Ending balance | $ | 1,898 | $ | 1,563 | $ | 1,898 | $ | 1,563 | ||||||
Unrealized gains (losses) | $ | (42) | $ | 173 | $ | 454 | $ | 10 | ||||||
Corporate equities | ||||||||||||||
Beginning balance | $ | 246 | $ | 150 | $ | 115 | $ | 86 | ||||||
Realized and unrealized gains (losses) | (60) | 4 | (71) | (15) | ||||||||||
Purchases | 15 | 83 | 79 | 367 | ||||||||||
Sales | (37) | (7) | (67) | (193) | ||||||||||
Net transfers | (19) | (16) | 89 | (31) | ||||||||||
Ending balance | $ | 145 | $ | 214 | $ | 145 | $ | 214 | ||||||
Unrealized gains (losses) | $ | (60) | $ | 4 | $ | (65) | $ | (5) | ||||||
Investments | ||||||||||||||
Beginning balance | $ | 1,027 | $ | 978 | $ | 1,125 | $ | 828 | ||||||
Realized and unrealized gains (losses) | (140) | 18 | (275) | 58 | ||||||||||
Purchases | 6 | 59 | 52 | 150 | ||||||||||
Sales | (18) | (23) | (33) | (46) | ||||||||||
Net transfers | (2) | (251) | 4 | (209) | ||||||||||
Ending balance | $ | 873 | $ | 781 | $ | 873 | $ | 781 | ||||||
Unrealized gains (losses) | $ | (136) | $ | 13 | $ | (267) | $ | 39 | ||||||
Investment securities —AFS | ||||||||||||||
Beginning balance | $ | 38 | $ | — | $ | — | $ | 2,804 | ||||||
Realized and unrealized gains (losses) | (2) | — | (2) | (4) | ||||||||||
Sales | — | — | — | (203) | ||||||||||
Net transfers3 | — | — | 38 | (2,597) | ||||||||||
Ending balance | $ | 36 | $ | — | $ | 36 | $ | — | ||||||
Unrealized gains (losses) | $ | (2) | $ | — | $ | (2) | $ | — | ||||||
Net derivatives: Interest rate | ||||||||||||||
Beginning balance | $ | (102) | $ | 668 | $ | 708 | $ | 682 | ||||||
Realized and unrealized gains (losses) | (200) | 70 | (482) | (223) | ||||||||||
Purchases | — | 22 | — | 48 | ||||||||||
Issuances | — | (9) | — | (41) | ||||||||||
Settlements | 122 | 18 | (38) | 101 | ||||||||||
Net transfers | 3 | 27 | (365) | 229 | ||||||||||
Ending balance | $ | (177) | $ | 796 | $ | (177) | $ | 796 | ||||||
Unrealized gains (losses) | $ | (120) | $ | 165 | $ | (201) | $ | (168) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Net derivatives: Credit | ||||||||||||||
Beginning balance | $ | 190 | $ | (203) | $ | 98 | $ | 49 | ||||||
Realized and unrealized gains (losses) | 3 | 59 | 91 | (2) | ||||||||||
Purchases | — | 12 | 3 | 23 | ||||||||||
Issuances | — | (19) | (1) | (44) | ||||||||||
Settlements | (78) | 102 | (59) | 16 | ||||||||||
Net transfers | 7 | 15 | (10) | (76) | ||||||||||
Ending balance | $ | 122 | $ | (34) | $ | 122 | $ | (34) | ||||||
Unrealized gains (losses) | $ | 7 | $ | (26) | $ | 83 | $ | — | ||||||
Net derivatives: Foreign exchange | ||||||||||||||
Beginning balance | $ | (331) | $ | 33 | $ | 52 | $ | 61 | ||||||
Realized and unrealized gains (losses) | 38 | 32 | (18) | 41 | ||||||||||
Purchases | — | 12 | — | 19 | ||||||||||
Issuances | — | (15) | — | (21) | ||||||||||
Settlements | 73 | 46 | 47 | (45) | ||||||||||
Net transfers | 395 | (11) | 94 | 42 | ||||||||||
Ending balance | $ | 175 | $ | 97 | $ | 175 | $ | 97 | ||||||
Unrealized gains (losses) | $ | 44 | $ | 29 | $ | 18 | $ | 73 | ||||||
Net derivatives: Equity | ||||||||||||||
Beginning balance | $ | (530) | $ | (837) | $ | (945) | $ | (2,231) | ||||||
Realized and unrealized gains (losses) | 1 | (45) | 275 | 366 | ||||||||||
Purchases | 48 | 24 | 167 | 69 | ||||||||||
Issuances | (92) | (122) | (253) | (362) | ||||||||||
Settlements | 68 | (3) | 379 | (196) | ||||||||||
Net transfers2 | 49 | (17) | (79) | 1,354 | ||||||||||
Ending balance | $ | (456) | $ | (1,000) | $ | (456) | $ | (1,000) | ||||||
Unrealized gains (losses) | $ | (3) | $ | (96) | $ | 399 | $ | (57) | ||||||
Net derivatives: Commodity and other | ||||||||||||||
Beginning balance | $ | 1,344 | $ | 1,430 | $ | 1,529 | $ | 1,709 | ||||||
Realized and unrealized gains (losses) | 238 | (167) | 546 | 43 | ||||||||||
Purchases | 2 | 44 | 107 | 324 | ||||||||||
Issuances | (7) | (31) | (97) | (137) | ||||||||||
Settlements | 69 | (97) | (247) | (371) | ||||||||||
Net transfers | 155 | 130 | (37) | (259) | ||||||||||
Ending balance | $ | 1,801 | $ | 1,309 | $ | 1,801 | $ | 1,309 | ||||||
Unrealized gains (losses) | $ | 72 | $ | (96) | $ | 25 | $ | (243) | ||||||
Deposits | ||||||||||||||
Beginning balance | $ | 19 | $ | 86 | $ | 67 | $ | 126 | ||||||
Realized and unrealized losses (gains) | — | (1) | — | 1 | ||||||||||
Issuances | 2 | — | 2 | — | ||||||||||
Settlements | (1) | (4) | (3) | (12) | ||||||||||
Net transfers | (13) | (19) | (59) | (53) | ||||||||||
Ending balance | $ | 7 | $ | 62 | $ | 7 | $ | 62 | ||||||
Unrealized losses (gains) | $ | — | $ | (1) | $ | — | $ | 1 | ||||||
Nonderivative trading liabilities | ||||||||||||||
Beginning balance | $ | 104 | $ | 59 | $ | 61 | $ | 79 | ||||||
Realized and unrealized losses (gains) | (8) | (11) | (41) | (20) | ||||||||||
Purchases | (20) | (16) | (39) | (88) | ||||||||||
Sales | 16 | 11 | 88 | 83 | ||||||||||
Net transfers | (2) | (1) | 21 | (12) | ||||||||||
Ending balance | $ | 90 | $ | 42 | $ | 90 | $ | 42 | ||||||
Unrealized losses (gains) | $ | (8) | $ | (11) | $ | (41) | $ | 1 |
43 | September |
Notes to Consolidated Financial Statements (Unaudited) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
U.S. Treasury and agency securities | ||||||||||||||
Beginning balance | $ | 25 | $ | 97 | $ | 9 | $ | 22 | ||||||
Realized and unrealized gains (losses) | (1) | (1) | — | — | ||||||||||
Purchases | 4 | 109 | 28 | 133 | ||||||||||
Sales | (24) | (36) | (33) | (42) | ||||||||||
Net transfers | — | (47) | — | 9 | ||||||||||
Ending balance | $ | 4 | $ | 122 | $ | 4 | $ | 122 | ||||||
Unrealized gains (losses) | $ | (1) | $ | (1) | $ | — | $ | — | ||||||
Other sovereign government obligations | ||||||||||||||
Beginning balance | $ | 78 | $ | 11 | $ | 268 | $ | 5 | ||||||
Realized and unrealized gains (losses) | (3) | (1) | (1) | — | ||||||||||
Purchases | 59 | 1 | 129 | 8 | ||||||||||
Sales | (4) | (1) | (269) | (3) | ||||||||||
Net transfers | (3) | — | — | — | ||||||||||
Ending balance | $ | 127 | $ | 10 | $ | 127 | $ | 10 | ||||||
Unrealized gains (losses) | $ | (3) | $ | — | $ | — | $ | — | ||||||
State and municipal securities | ||||||||||||||
Beginning balance | $ | 4 | $ | — | $ | — | $ | 1 | ||||||
Purchases | — | — | 4 | — | ||||||||||
Sales | (4) | — | (4) | — | ||||||||||
Net transfers | — | — | — | (1) | ||||||||||
Ending balance | $ | — | $ | — | $ | — | $ | — | ||||||
Unrealized gains (losses) | $ | — | $ | — | $ | — | $ | — | ||||||
MABS | ||||||||||||||
Beginning balance | $ | 357 | $ | 379 | $ | 322 | $ | 438 | ||||||
Realized and unrealized gains (losses) | 11 | 13 | 67 | (60) | ||||||||||
Purchases | 96 | 13 | 263 | 172 | ||||||||||
Sales | (23) | (54) | (216) | (162) | ||||||||||
Net transfers | (75) | 92 | (70) | 55 | ||||||||||
Ending balance | $ | 366 | $ | 443 | $ | 366 | $ | 443 | ||||||
Unrealized gains (losses) | $ | 11 | $ | 8 | $ | 8 | $ | (35) | ||||||
Loans and lending commitments | ||||||||||||||
Beginning balance | $ | 4,896 | $ | 4,068 | $ | 5,759 | $ | 5,073 | ||||||
Realized and unrealized gains (losses) | 47 | 20 | 33 | (161) | ||||||||||
Purchases and originations | 1,373 | 846 | 2,467 | 1,926 | ||||||||||
Sales | (768) | (725) | (2,314) | (1,139) | ||||||||||
Settlements | (414) | (285) | (1,082) | (1,907) | ||||||||||
Net transfers1 | (830) | 427 | (559) | 559 | ||||||||||
Ending balance | $ | 4,304 | $ | 4,351 | $ | 4,304 | $ | 4,351 | ||||||
Unrealized gains (losses) | $ | 21 | $ | 27 | $ | (5) | $ | (137) | ||||||
Corporate and other debt | ||||||||||||||
Beginning balance | $ | 1,801 | $ | 2,686 | $ | 3,435 | $ | 1,396 | ||||||
Realized and unrealized gains (losses) | 173 | (107) | (151) | (184) | ||||||||||
Purchases and originations | 639 | 451 | 1,505 | 2,217 | ||||||||||
Sales | (594) | (325) | (1,698) | (425) | ||||||||||
Settlements | — | — | — | (311) | ||||||||||
Net transfers2 | (456) | 22 | (1,528) | 34 | ||||||||||
Ending balance | $ | 1,563 | $ | 2,727 | $ | 1,563 | $ | 2,727 | ||||||
Unrealized gains (losses) | $ | 173 | $ | (96) | $ | 10 | $ | (186) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Corporate equities | ||||||||||||||
Beginning balance | $ | 150 | $ | 83 | $ | 86 | $ | 97 | ||||||
Realized and unrealized gains (losses) | 4 | 32 | (15) | — | ||||||||||
Purchases | 83 | 32 | 367 | 42 | ||||||||||
Sales | (7) | (27) | (193) | (27) | ||||||||||
Net transfers | (16) | 15 | (31) | 23 | ||||||||||
Ending balance | $ | 214 | $ | 135 | $ | 214 | $ | 135 | ||||||
Unrealized gains (losses) | $ | 4 | $ | 39 | $ | (5) | $ | 14 | ||||||
Investments | ||||||||||||||
Beginning balance | $ | 978 | $ | 759 | $ | 828 | $ | 858 | ||||||
Realized and unrealized gains (losses) | 18 | 55 | 58 | (6) | ||||||||||
Purchases | 59 | 7 | 150 | 37 | ||||||||||
Sales | (23) | (16) | (46) | (37) | ||||||||||
Net transfers | (251) | 16 | (209) | (31) | ||||||||||
Ending balance | $ | 781 | $ | 821 | $ | 781 | $ | 821 | ||||||
Unrealized gains (losses) | $ | 13 | $ | 44 | $ | 39 | $ | (19) | ||||||
Investment securities —AFS | ||||||||||||||
Beginning balance | $ | — | $ | — | $ | 2,804 | $ | — | ||||||
Realized and unrealized gains (losses) | — | — | (4) | — | ||||||||||
Sales | — | — | (203) | — | ||||||||||
Net transfers3 | — | — | (2,597) | — | ||||||||||
Ending balance | $ | — | $ | — | $ | — | $ | — | ||||||
Unrealized gains (losses) | $ | — | $ | — | $ | — | $ | — | ||||||
Securities purchased under agreements to resell | ||||||||||||||
Beginning balance | $ | — | $ | — | $ | 3 | $ | — | ||||||
Net transfers | — | — | (3) | — | ||||||||||
Ending balance | $ | — | $ | — | $ | — | $ | — | ||||||
Unrealized gains (losses) | $ | — | $ | — | $ | — | $ | — | ||||||
Net derivatives: Interest rate | ||||||||||||||
Beginning balance | $ | 668 | $ | 760 | $ | 682 | $ | 777 | ||||||
Realized and unrealized gains (losses) | 70 | (147) | (223) | (95) | ||||||||||
Purchases | 22 | 36 | 48 | 153 | ||||||||||
Issuances | (9) | (15) | (41) | (41) | ||||||||||
Settlements | 18 | (31) | 101 | 36 | ||||||||||
Net transfers | 27 | 33 | 229 | (194) | ||||||||||
Ending balance | $ | 796 | $ | 636 | $ | 796 | $ | 636 | ||||||
Unrealized gains (losses) | $ | 165 | $ | (139) | $ | (168) | $ | (37) | ||||||
Net derivatives: Credit | ||||||||||||||
Beginning balance | $ | (203) | $ | 131 | $ | 49 | $ | 124 | ||||||
Realized and unrealized gains (losses) | 59 | (16) | (2) | 11 | ||||||||||
Purchases | 12 | 17 | 23 | 66 | ||||||||||
Issuances | (19) | (51) | (44) | (101) | ||||||||||
Settlements | 102 | 10 | 16 | 61 | ||||||||||
Net transfers | 15 | 25 | (76) | (45) | ||||||||||
Ending balance | $ | (34) | $ | 116 | $ | (34) | $ | 116 | ||||||
Unrealized gains (losses) | $ | (26) | $ | (16) | $ | — | $ | 2 |
(Unaudited) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Net derivatives: Foreign exchange | ||||||||||||||
Beginning balance | $ | 33 | $ | 17 | $ | 61 | $ | (31) | ||||||
Realized and unrealized gains (losses) | 32 | 86 | 41 | 202 | ||||||||||
Purchases | 12 | — | 19 | 3 | ||||||||||
Issuances | (15) | (4) | (21) | (5) | ||||||||||
Settlements | 46 | (9) | (45) | (27) | ||||||||||
Net transfers | (11) | 9 | 42 | (43) | ||||||||||
Ending balance | $ | 97 | $ | 99 | $ | 97 | $ | 99 | ||||||
Unrealized gains (losses) | $ | 29 | $ | 75 | $ | 73 | $ | 136 | ||||||
Net derivatives: Equity | ||||||||||||||
Beginning balance | $ | (837) | $ | (1,884) | $ | (2,231) | $ | (1,684) | ||||||
Realized and unrealized gains (losses) | (45) | 3 | 366 | 75 | ||||||||||
Purchases | 24 | 19 | 69 | 192 | ||||||||||
Issuances | (122) | (181) | (362) | (706) | ||||||||||
Settlements | (3) | (151) | (196) | (167) | ||||||||||
Net transfers2 | (17) | 49 | 1,354 | 145 | ||||||||||
Ending balance | $ | (1,000) | $ | (2,145) | $ | (1,000) | $ | (2,145) | ||||||
Unrealized gains (losses) | $ | (96) | $ | 32 | $ | (57) | $ | (143) | ||||||
Net derivatives: Commodity and other | ||||||||||||||
Beginning balance | $ | 1,430 | $ | 2,087 | $ | 1,709 | $ | 1,612 | ||||||
Realized and unrealized gains (losses) | (167) | (29) | 43 | 373 | ||||||||||
Purchases | 44 | 1 | 324 | 26 | ||||||||||
Issuances | (31) | (40) | (137) | (65) | ||||||||||
Settlements | (97) | (181) | (371) | (101) | ||||||||||
Net transfers | 130 | (34) | (259) | (41) | ||||||||||
Ending balance | $ | 1,309 | $ | 1,804 | $ | 1,309 | $ | 1,804 | ||||||
Unrealized gains (losses) | $ | (96) | $ | (251) | $ | (243) | $ | (6) | ||||||
Deposits | ||||||||||||||
Beginning balance | $ | 86 | $ | 90 | $ | 126 | $ | 179 | ||||||
Realized and unrealized losses (gains) | (1) | 4 | 1 | 8 | ||||||||||
Settlements | (4) | (2) | (12) | (13) | ||||||||||
Net transfers | (19) | 13 | (53) | (69) | ||||||||||
Ending balance | $ | 62 | $ | 105 | $ | 62 | $ | 105 | ||||||
Unrealized losses (gains) | $ | (1) | $ | 4 | $ | 1 | $ | 8 | ||||||
Nonderivative trading liabilities | ||||||||||||||
Beginning balance | $ | 59 | $ | 74 | $ | 79 | $ | 37 | ||||||
Realized and unrealized losses (gains) | (11) | (6) | (20) | (21) | ||||||||||
Purchases | (16) | (7) | (88) | (23) | ||||||||||
Sales | 11 | 5 | 83 | 23 | ||||||||||
Settlements | — | — | — | 3 | ||||||||||
Net transfers | (1) | (6) | (12) | 41 | ||||||||||
Ending balance | $ | 42 | $ | 60 | $ | 42 | $ | 60 | ||||||
Unrealized losses (gains) | $ | (11) | $ | (4) | $ | 1 | $ | (21) | ||||||
Securities sold under agreements to repurchase | ||||||||||||||
Beginning balance | $ | 449 | $ | 440 | $ | 444 | $ | — | ||||||
Realized and unrealized losses (gains) | (1) | 8 | 5 | (22) | ||||||||||
Issuances | — | — | — | 470 | ||||||||||
Net transfers | — | — | (1) | — | ||||||||||
Ending balance | $ | 448 | $ | 448 | $ | 448 | $ | 448 | ||||||
Unrealized losses (gains) | $ | (1) | $ | 8 | $ | 5 | $ | (22) |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 514 | $ | 449 | $ | 651 | $ | 444 | |||||||||||||||||||
Realized and unrealized losses (gains) | Realized and unrealized losses (gains) | 5 | (1) | (3) | 5 | |||||||||||||||||||||||
Issuances | Issuances | — | — | 9 | — | |||||||||||||||||||||||
Settlements | Settlements | (11) | — | (22) | — | |||||||||||||||||||||||
Net transfers | Net transfers | — | — | (127) | (1) | |||||||||||||||||||||||
Ending balance | Ending balance | $ | 508 | $ | 448 | $ | 508 | $ | 448 | |||||||||||||||||||
Unrealized losses (gains) | Unrealized losses (gains) | $ | 5 | $ | (1) | $ | — | $ | 5 | |||||||||||||||||||
Other secured financings | Other secured financings | Other secured financings | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 401 | $ | 300 | $ | 516 | $ | 109 | Beginning balance | $ | 112 | $ | 401 | $ | 403 | $ | 516 | ||||||||||
Realized and unrealized losses (gains) | Realized and unrealized losses (gains) | (17) | 11 | (14) | (1) | Realized and unrealized losses (gains) | (5) | (17) | (11) | (14) | ||||||||||||||||||
Issuances | Issuances | 14 | 3 | 421 | 10 | Issuances | 13 | 14 | 44 | 421 | ||||||||||||||||||
Settlements | Settlements | (3) | (5) | (500) | (208) | Settlements | (7) | (3) | (320) | (500) | ||||||||||||||||||
Net transfers | Net transfers | — | — | (28) | 399 | Net transfers | — | — | (3) | (28) | ||||||||||||||||||
Ending balance | Ending balance | $ | 395 | $ | 309 | $ | 395 | $ | 309 | Ending balance | $ | 113 | $ | 395 | $ | 113 | $ | 395 | ||||||||||
Unrealized losses (gains) | Unrealized losses (gains) | $ | (17) | $ | 11 | $ | (13) | $ | (1) | Unrealized losses (gains) | $ | (5) | $ | (17) | $ | (11) | $ | (13) | ||||||||||
Borrowings | Borrowings | Borrowings | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 1,975 | $ | 4,135 | $ | 4,374 | $ | 4,088 | Beginning balance | $ | 2,325 | $ | 1,975 | $ | 2,157 | $ | 4,374 | ||||||||||
Realized and unrealized losses (gains) | Realized and unrealized losses (gains) | (87) | (32) | (37) | (284) | Realized and unrealized losses (gains) | (185) | (87) | (625) | (37) | ||||||||||||||||||
Issuances | Issuances | 197 | 194 | 411 | 992 | Issuances | 65 | 197 | 230 | 411 | ||||||||||||||||||
Settlements | Settlements | (67) | (70) | (347) | (346) | Settlements | (65) | (67) | (263) | (347) | ||||||||||||||||||
Net transfers2 | Net transfers2 | 38 | (146) | (2,345) | (369) | Net transfers2 | (203) | 38 | 438 | (2,345) | ||||||||||||||||||
Ending balance | Ending balance | $ | 2,056 | $ | 4,081 | $ | 2,056 | $ | 4,081 | Ending balance | $ | 1,937 | $ | 2,056 | $ | 1,937 | $ | 2,056 | ||||||||||
Unrealized losses (gains) | Unrealized losses (gains) | $ | (86) | $ | (33) | $ | (8) | $ | (282) | Unrealized losses (gains) | $ | (185) | $ | (86) | $ | (629) | $ | (8) | ||||||||||
Portion of Unrealized losses (gains) recorded in OCI—Change in net DVA | Portion of Unrealized losses (gains) recorded in OCI—Change in net DVA | (4) | 22 | (18) | (124) | Portion of Unrealized losses (gains) recorded in OCI—Change in net DVA | (36) | (4) | (126) | (18) |
(Unaudited) |
Balance / Range (Average1) | ||||||||
$ in millions, except inputs | At September 30, 2021 | At December 31, 2020 | ||||||
Assets at Fair Value on a Recurring Basis | ||||||||
Other sovereign government obligations | $ | 127 | $ | 268 | ||||
Comparable pricing: | ||||||||
Bond price | 96 to 152 points (125 points) | 106 points | ||||||
MABS | $ | 366 | $ | 322 | ||||
Comparable pricing: | ||||||||
Bond price | 0 to 86 points (53 points) | 0 to 80 points (50 points) | ||||||
Loans and lending commitments | $ | 4,304 | $ | 5,759 | ||||
Margin loan model: | ||||||||
Margin loan rate | 1% to 4% (3%) | 1% to 5% (3%) | ||||||
Comparable pricing: | ||||||||
Loan price | 91 to 102 points (99 points) | 75 to 102 points (93 points) | ||||||
Corporate and other debt | $ | 1,563 | $ | 3,435 | ||||
Comparable pricing: | ||||||||
Bond price | 90 to 110 points (99 points) | 10 to 133 points (101 points) | ||||||
Discounted cash flow: | ||||||||
Recovery rate | 40% to 62% (46% / 40%) | 40% to 62% (46% / 40%) | ||||||
Option model: | ||||||||
Equity volatility | 22% to 134% (70%) | 18% to 21% (19%) | ||||||
Corporate equities | $ | 214 | $ | 86 | ||||
Comparable pricing: | ||||||||
Equity price | 100% | 100% | ||||||
Investments | $ | 781 | $ | 828 | ||||
Discounted cash flow: | ||||||||
WACC | 10% to 16% (15%) | 8% to 18% (15%) | ||||||
Exit multiple | 8 to 17 times (12 times) | 7 to 17 times (12 times) | ||||||
Market approach: | ||||||||
EBITDA multiple | 8 to 29 times (10 times) | 8 to 32 times (11 times) | ||||||
Comparable pricing: | ||||||||
Equity price | 43% to 100% (99%) | 45% to 100% (99%) | ||||||
Investment securities —AFS | $ | — | $ | 2,804 | ||||
Comparable pricing: | ||||||||
Bond price | N/A | 97 to 107 points (101 points) | ||||||
Net derivative and other contracts: | ||||||||
Interest rate | $ | 796 | $ | 682 | ||||
Option model: | ||||||||
IR volatility skew | 33% to 99% (60% / 59%) | 0% to 349% (62% / 59%) | ||||||
IR curve correlation | 65% to 98% (83% / 83%) | 54% to 99% (87% / 89%) | ||||||
Bond volatility | 5% to 14% (7% / 6%) | 6% to 24% (13% / 13%) | ||||||
Inflation volatility | 25% to 65% (45% / 43%) | 25% to 66% (45% / 43%) | ||||||
IR curve | 2% | 1% |
Balance / Range (Average1) | ||||||||
$ in millions, except inputs | At September 30, 2021 | At December 31, 2020 | ||||||
Credit | $ | (34) | $ | 49 | ||||
Credit default swap model: | ||||||||
Cash-synthetic basis | 7 points | 7 points | ||||||
Bond price | 0 to 83 points (46 points) | 0 to 85 points (47 points) | ||||||
Credit spread | 14 to 463 bps (74 bps) | 20 to 435 bps (74 bps) | ||||||
Funding spread | 18 to 95 bps (60 bps) | 65 to 118 bps (86 bps) | ||||||
Correlation model: | ||||||||
Credit correlation | 23% to 39% (26%) | 27% to 44% (32%) | ||||||
Foreign exchange2 | $ | 97 | $ | 61 | ||||
Option model: | ||||||||
IR - FX correlation | 53% to 57% (55% 55%) | 55% to 59% (56% / 56%) | ||||||
IR volatility skew | 33% to 99% (60% / 59%) | 0% to 349% (62% / 59%) | ||||||
IR curve | 7% | 6% to 8% (7% / 8%) | ||||||
Foreign exchange volatility skew | -4% to -2% (-3% / -3%) | -22% to 28% (3% / 1%) | ||||||
Contingency probability | 95% | 50% to 95% (83% / 93%) | ||||||
Equity2 | $ | (1,000) | $ | (2,231) | ||||
Option model: | ||||||||
Equity volatility | 5% to 92% (23%) | 16% to 97% (43%) | ||||||
Equity volatility skew | -4% to 0% (-1%) | -3% to 0% (-1%) | ||||||
Equity correlation | 5% to 99% (74%) | 24% to 96% (74%) | ||||||
FX correlation | -85% to 50% (-33%) | -79% to 60% (-16%) | ||||||
IR correlation | -13% to 35% (15%) | -13% to 47% (21% / 20%) | ||||||
Commodity and other | $ | 1,309 | $ | 1,709 | ||||
Option model: | ||||||||
Forward power price | $1 to $248 ($39) per MWh | $-1 to $157 ($28) per MWh | ||||||
Commodity volatility | 8% to 212% (24%) | 8% to 183% (19%) | ||||||
Cross-commodity correlation | 43% to 100% (94%) | 43% to 99% (92%) | ||||||
Liabilities Measured at Fair Value on a Recurring Basis | ||||||||
Deposits | $ | 62 | $ | 126 | ||||
Option model: | ||||||||
Equity volatility | 7% | 7% to 22% (8%) | ||||||
Nonderivative trading liabilities —Corporate equities | $ | 34 | $ | 63 | ||||
Comparable pricing: | ||||||||
Equity price | 100% | 100% | ||||||
Securities sold under agreements to repurchase | $ | 448 | $ | 444 | ||||
Discounted cash flow: | ||||||||
Funding spread | 116 to 122 bps (119 bps) | 107 to 127 bps (115 bps) | ||||||
Other secured financings | $ | 395 | $ | 516 | ||||
Discounted cash flow: | ||||||||
Funding spread | N/A | 111 bps (111 bps) | ||||||
Comparable pricing: | ||||||||
Loan price | 30 to 100 points (83 points) | 30 to 101 points (56 points) | ||||||
Balance / Range (Average1) | ||||||||
$ in millions, except inputs | At September 30, 2022 | At December 31, 2021 | ||||||
Assets at Fair Value on a Recurring Basis | ||||||||
Other sovereign government obligations | $ | 137 | $ | 211 | ||||
Comparable pricing: | ||||||||
Bond price | 76 to 127 points (92 points) | 100 to 140 points (120 points) | ||||||
State and municipal securities | $ | 52 | $ | 13 | ||||
Comparable pricing: | ||||||||
Bond price | 78 to 100 points (95 points) | N/M | ||||||
MABS | $ | 344 | $ | 344 | ||||
Comparable pricing: | ||||||||
Bond price | 0 to 95 points (68 points) | 0 to 86 points (59 points) | ||||||
Loans and lending commitments | $ | 2,583 | $ | 3,806 | ||||
Margin loan model: | ||||||||
Margin loan rate | 2% to 4% (3%) | 1% to 4% (3%) | ||||||
Comparable pricing: | ||||||||
Loan price | 84 to 101 points (97 points) | 89 to 101 points (97 points) | ||||||
Corporate and other debt | $ | 1,898 | $ | 1,973 | ||||
Comparable pricing: | ||||||||
Bond price | 52 to 139 points (90 points) | 50 to 163 points (99 points) | ||||||
Discounted cash flow: | ||||||||
Loss given default | 54% to 84% (62% / 54%) | 54% to 84% (62% / 54%) | ||||||
Corporate equities | $ | 145 | $ | 115 | ||||
Comparable pricing: | ||||||||
Equity price | 100% | 100% | ||||||
Investments | $ | 873 | $ | 1,125 | ||||
Discounted cash flow: | ||||||||
WACC | 15% to 18% (17%) | 10% to 16% (15%) | ||||||
Exit multiple | 7 to 17 times (13 times) | 8 to 17 times (12 times) | ||||||
Market approach: | ||||||||
EBITDA multiple | 7 to 20 times (9 times) | 8 to 25 times (10 times) | ||||||
Comparable pricing: | ||||||||
Equity price | 48% to 100% (85%) | 43% to 100% (99%) | ||||||
September |
Notes to Consolidated Financial Statements (Unaudited) |
Balance / Range (Average1) | Balance / Range (Average1) | |||||||||||||||
$ in millions, except inputs | $ in millions, except inputs | At September 30, 2021 | At December 31, 2020 | $ in millions, except inputs | At September 30, 2022 | At December 31, 2021 | ||||||||||
Borrowings | $ | 2,056 | $ | 4,374 | ||||||||||||
Net derivative and other contracts: | Net derivative and other contracts: | |||||||||||||||
Interest rate | Interest rate | $ | (177) | $ | 708 | |||||||||||
Option model: | Option model: | |||||||||||||||
IR volatility skew | IR volatility skew | 106% to 126% (113% / 111%) | 39% to 79% (64% / 63%) | |||||||||||||
IR curve correlation | IR curve correlation | 58% to 99% (80% / 80%) | 62% to 98% (83% / 84%) | |||||||||||||
Bond volatility | Bond volatility | N/M | 5% to 32% (12% / 9%) | |||||||||||||
Inflation volatility | Inflation volatility | 24% to 62% (44% / 40%) | 24% to 65% (44% / 40%) | |||||||||||||
IR curve | IR curve | 4% to 5% (4% / 4%) | 4% | |||||||||||||
Credit | Credit | $ | 122 | $ | 98 | |||||||||||
Credit default swap model: | Credit default swap model: | |||||||||||||||
Cash-synthetic basis | Cash-synthetic basis | 7 points | 7 points | |||||||||||||
Bond price | Bond price | 0 to 83 points (43 points) | 0 to 83 points (46 points) | |||||||||||||
Credit spread | Credit spread | 10 to 530 bps (129 bps) | 14 to 477 bps (68 bps) | |||||||||||||
Funding spread | Funding spread | 18 to 590 bps (86 bps) | 15 to 433 bps (55 bps) | |||||||||||||
Foreign exchange2 | Foreign exchange2 | $ | 175 | $ | 52 | |||||||||||
Option model: | Option model: | |||||||||||||||
IR - FX correlation | IR - FX correlation | N/M | 53% to 56% (55% / 54%) | |||||||||||||
IR volatility skew | IR volatility skew | N/M | 39% to 79% (64% / 63%) | |||||||||||||
IR curve | IR curve | -4% to 71% (21% / 17%) | -1% to 7% (2% / 0%) | |||||||||||||
Foreign exchange volatility skew | Foreign exchange volatility skew | 11% to 15% (13% / 13%) | -4% to -2% (-3% / -3%) | |||||||||||||
Contingency probability | Contingency probability | 95% | 90% to 95% (94% / 95%) | |||||||||||||
Equity2 | Equity2 | $ | (456) | $ | (945) | |||||||||||
Option model: | Option model: | Option model: | ||||||||||||||
Equity volatility | Equity volatility | 7% to 51% (19%) | 6% to 66% (23%) | Equity volatility | 5% to 97% (27%) | 5% to 99% (24%) | ||||||||||
Equity volatility skew | Equity volatility skew | -1% to 0% (0%) | -2% to 0% (0%) | Equity volatility skew | -3% to 0% (-1%) | -4% to 0% (-1%) | ||||||||||
Equity correlation | Equity correlation | 39% to 98% (91%) | 37% to 95% (78%) | Equity correlation | 10% to 96% (76%) | 5% to 99% (73%) | ||||||||||
Equity - FX correlation | -60% to 10% (-16%) | -72% to 13% (-24%) | ||||||||||||||
FX correlation | FX correlation | -85% to 65% (-27%) | -85% to 37% (-42%) | |||||||||||||
IR correlation | IR correlation | 10% to 30% (12%) | 13% to 30% (15%) | |||||||||||||
Commodity and other | Commodity and other | $ | 1,801 | $ | 1,529 | |||||||||||
Option model: | Option model: | |||||||||||||||
Forward power price | Forward power price | $2 to $288 ($59) per MWh | $4 to $263 ($39) per MWh | |||||||||||||
Commodity volatility | Commodity volatility | 8% to 137% (36%) | 8% to 385% (22%) | |||||||||||||
Cross-commodity correlation | Cross-commodity correlation | 70% to 100% (93%) | 43% to 100% (94%) | |||||||||||||
Liabilities Measured at Fair Value on a Recurring Basis | Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||
Deposits | Deposits | $ | 7 | $ | 67 | |||||||||||
Option model: | Option model: | |||||||||||||||
Equity volatility | Equity volatility | N/M | 7% | |||||||||||||
IR FX Correlation | -27% to 7% (-5% / -5%) | -28% to 6% (-6% / -6%) | ||||||||||||||
Nonderivative trading liabilities —Corporate equities | Nonderivative trading liabilities —Corporate equities | $ | 54 | $ | 45 | |||||||||||
Comparable pricing: | Comparable pricing: | |||||||||||||||
Equity price | Equity price | 100% | 100% | |||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | $ | 508 | $ | 651 | |||||||||||
Discounted cash flow: | Discounted cash flow: | Discounted cash flow: | ||||||||||||||
Recovery rate | 40% to 62% (46% / 40%) | N/M | ||||||||||||||
Nonrecurring Fair Value Measurement | ||||||||||||||||
Loans | $ | 1,603 | $ | 3,134 | ||||||||||||
Corporate loan model: | ||||||||||||||||
Credit spread | 95 to 562 bps (298 bps) | 36 to 636 bps (336 bps) | ||||||||||||||
Funding spread | Funding spread | 62 to 147 bps (114 bps) | 112 to 127 bps (120 bps) | |||||||||||||
Other secured financings | Other secured financings | $ | 113 | $ | 403 | |||||||||||
Comparable pricing: | Comparable pricing: | Comparable pricing: | ||||||||||||||
Loan price | Loan price | 48 to 80 points (63 points) | N/M | Loan price | 23 to 101 points (77 points) | 30 to 100 points (83 points) | ||||||||||
Warehouse model: | ||||||||||||||||
Credit spread | 197 to 450 bps (374 bps) | 200 to 413 bps (368 bps) | ||||||||||||||
Comparable pricing: | ||||||||||||||||
Bond Price | N/A | 88 to 99 bps (94 bps) |
Balance / Range (Average1) | ||||||||
$ in millions, except inputs | At September 30, 2022 | At December 31, 2021 | ||||||
Borrowings | $ | 1,937 | $ | 2,157 | ||||
Option model: | ||||||||
Equity volatility | 6% to 96% (23%) | 7% to 85% (20%) | ||||||
Equity volatility skew | -1% to 0% (-1%) | -1% to 0% (0%) | ||||||
Equity correlation | 39% to 95% (86%) | 41% to 95% (81%) | ||||||
Equity - FX correlation | -55% to 25% (-17%) | -55% to 25% (-30%) | ||||||
IR FX Correlation | -17% to 5% (-5% / -5%) | -26% to 8% (-5% / -5%) | ||||||
IR curve correlation | 58% to 85% (75% / 73%) | N/M | ||||||
IR volatility skew | 57% to 93% (69% / 56%) | N/M | ||||||
Discounted cash flow: | ||||||||
Loss given default | 54% to 84% (62% / 54%) | 54% to 84% (62% / 54%) | ||||||
Nonrecurring Fair Value Measurement | ||||||||
Loans | $ | 3,476 | $ | 1,576 | ||||
Corporate loan model: | ||||||||
Credit spread | 113 to 819 bps (438 bps) | 108 to 565 bps (284 bps) | ||||||
Comparable pricing: | ||||||||
Loan price | 36 to 80 points (66 points) | 40 to 80 points (61 points) | ||||||
Warehouse model: | ||||||||
Credit spread | 146 to 260 bps (235 bps) | 182 to 446 bps (376 bps) | ||||||
45 | September 2022 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
At September 30, 2021 | At December 31, 2020 | At September 30, 2022 | At December 31, 2021 | |||||||||||||||||||||||||
$ in millions | $ in millions | Carrying Value | Commitment | Carrying Value | Commitment | $ in millions | Carrying Value | Commitment | Carrying Value | Commitment | ||||||||||||||||||
Private equity | Private equity | $ | 2,430 | $ | 640 | $ | 2,367 | $ | 644 | Private equity | $ | 2,795 | $ | 538 | $ | 2,492 | $ | 615 | ||||||||||
Real estate | Real estate | 1,747 | 255 | 1,403 | 136 | Real estate | 2,316 | 242 | 2,064 | 248 | ||||||||||||||||||
Hedge1 | Hedge1 | 179 | 3 | 59 | — | Hedge1 | 198 | 2 | 191 | 2 | ||||||||||||||||||
Total | Total | $ | 4,356 | $ | 898 | $ | 3,829 | $ | 780 | Total | $ | 5,309 | $ | 782 | $ | 4,747 | $ | 865 |
Carrying Value at September 30, 2021 | Carrying Value at September 30, 2022 | |||||||||||||||
$ in millions | $ in millions | Private Equity | Real Estate | $ in millions | Private Equity | Real Estate | ||||||||||
Less than 5 years | Less than 5 years | $ | 1,094 | $ | 408 | Less than 5 years | $ | 1,035 | $ | 902 | ||||||
5-10 years | 5-10 years | 1,094 | 678 | 5-10 years | 1,196 | 1,380 | ||||||||||
Over 10 years | Over 10 years | 242 | 661 | Over 10 years | 564 | 34 | ||||||||||
Total | Total | $ | 2,430 | $ | 1,747 | Total | $ | 2,795 | $ | 2,316 |
At September 30, 2021 | At September 30, 2022 | |||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||
$ in millions | $ in millions | Level 2 | Level 31 | Total | $ in millions | Level 2 | Level 31 | Total | ||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||
Loans | Loans | $ | 3,310 | $ | 1,603 | $ | 4,913 | Loans | $ | 4,855 | $ | 3,476 | $ | 8,331 | ||||||||
Other assets—Other investments | Other assets—Other investments | — | 76 | 76 | Other assets—Other investments | — | 5 | 5 | ||||||||||||||
Other assets—ROU assets | Other assets—ROU assets | 5 | — | 5 | ||||||||||||||||||
Total | Total | $ | 3,310 | $ | 1,679 | $ | 4,989 | Total | $ | 4,860 | $ | 3,481 | $ | 8,341 | ||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||
Other liabilities and accrued expenses—Lending commitments | Other liabilities and accrued expenses—Lending commitments | $ | 156 | $ | 67 | $ | 223 | Other liabilities and accrued expenses—Lending commitments | $ | 375 | $ | 144 | $ | 519 | ||||||||
Total | Total | $ | 156 | $ | 67 | $ | 223 | Total | $ | 375 | $ | 144 | $ | 519 |
(Unaudited) |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||
$ in millions | $ in millions | Level 2 | Level 31 | Total | $ in millions | Level 2 | Level 31 | Total | ||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||
Loans | Loans | $ | 2,566 | $ | 3,134 | $ | 5,700 | Loans | $ | 4,035 | $ | 1,576 | $ | 5,611 | ||||||||
Other assets—Other investments | Other assets—Other investments | — | 16 | 16 | Other assets—Other investments | — | 8 | 8 | ||||||||||||||
Other assets—ROU assets | Other assets—ROU assets | 21 | — | 21 | Other assets—ROU assets | 16 | — | 16 | ||||||||||||||
Total | Total | $ | 2,587 | $ | 3,150 | $ | 5,737 | Total | $ | 4,051 | $ | 1,584 | $ | 5,635 | ||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||
Other liabilities and accrued expenses—Lending commitments | Other liabilities and accrued expenses—Lending commitments | $ | 193 | $ | 72 | $ | 265 | Other liabilities and accrued expenses—Lending commitments | $ | 173 | $ | 70 | $ | 243 | ||||||||
Total | Total | $ | 193 | $ | 72 | $ | 265 | Total | $ | 173 | $ | 70 | $ | 243 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||
Loans2 | Loans2 | $ | (22) | $ | (43) | $ | (75) | $ | (467) | Loans2 | $ | (118) | $ | (22) | $ | (365) | $ | (75) | ||||||||||
Goodwill | Goodwill | — | — | (8) | — | Goodwill | — | — | — | (8) | ||||||||||||||||||
Intangibles | Intangibles | — | (1) | (3) | (1) | Intangibles | — | — | — | (3) | ||||||||||||||||||
Other assets— Other investments3 | (2) | (2) | (55) | (54) | ||||||||||||||||||||||||
Other assets—Premises, equipment and software4 | (10) | (29) | (14) | (35) | ||||||||||||||||||||||||
Other assets—Other investments3 | Other assets—Other investments3 | (2) | (2) | (8) | (55) | |||||||||||||||||||||||
Other assets—Premises, equipment and software | Other assets—Premises, equipment and software | (1) | (10) | (3) | (14) | |||||||||||||||||||||||
Other assets—ROU assets | Other assets—ROU assets | (1) | — | (7) | — | |||||||||||||||||||||||
Total | Total | $ | (34) | $ | (75) | $ | (155) | $ | (557) | Total | $ | (122) | $ | (34) | $ | (383) | $ | (155) | ||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||||||||
Other liabilities and accrued expenses—Lending commitments2 | Other liabilities and accrued expenses—Lending commitments2 | $ | (2) | $ | 25 | $ | 34 | $ | (54) | Other liabilities and accrued expenses—Lending commitments2 | $ | (13) | $ | (2) | $ | (172) | $ | 34 | ||||||||||
Total | Total | $ | (2) | $ | 25 | $ | 34 | $ | (54) | Total | $ | (13) | $ | (2) | $ | (172) | $ | 34 |
September 2022 Form 10-Q | 46 |
Notes to Consolidated Financial Statements (Unaudited) |
At September 30, 2021 | At September 30, 2022 | |||||||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||||||||
$ in millions | $ in millions | Level 1 | Level 2 | Level 3 | Total | $ in millions | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Financial assets | Financial assets | Financial assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 123,863 | $ | 123,863 | $ | — | $ | — | $ | 123,863 | Cash and cash equivalents | $ | 111,696 | $ | 111,696 | $ | — | $ | — | $ | 111,696 | ||||||||||||
Investment securities—HTM | Investment securities—HTM | 81,837 | 30,726 | 50,380 | 982 | 82,088 | Investment securities—HTM | 77,636 | 27,657 | 37,721 | 1,015 | 66,393 | ||||||||||||||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | 119,714 | — | 117,863 | 1,868 | 119,731 | Securities purchased under agreements to resell | 111,124 | — | 108,312 | 2,680 | 110,992 | ||||||||||||||||||||||
Securities borrowed | Securities borrowed | 125,922 | — | 125,923 | — | 125,923 | Securities borrowed | 136,478 | — | 136,471 | — | 136,471 | ||||||||||||||||||||||
Customer and other receivables | Customer and other receivables | 95,022 | — | 91,571 | 3,349 | 94,920 | Customer and other receivables | 83,417 | — | 79,493 | 3,558 | 83,051 | ||||||||||||||||||||||
Loans1 | Loans1 | 173,359 | — | 23,242 | 151,341 | 174,583 | Loans1 | 210,936 | — | 25,100 | 178,571 | 203,671 | ||||||||||||||||||||||
Other assets | Other assets | 528 | — | 528 | — | 528 | Other assets | 704 | — | 704 | — | 704 | ||||||||||||||||||||||
Financial liabilities | Financial liabilities | Financial liabilities | ||||||||||||||||||||||||||||||||
Deposits | Deposits | $ | 327,031 | $ | — | $ | 327,384 | $ | — | $ | 327,384 | Deposits | $ | 334,462 | $ | — | $ | 334,378 | $ | — | $ | 334,378 | ||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | 61,059 | — | 61,100 | — | 61,100 | Securities sold under agreements to repurchase | 59,182 | — | 59,070 | — | 59,070 | ||||||||||||||||||||||
Securities loaned | Securities loaned | 11,133 | — | 11,131 | — | 11,131 | Securities loaned | 13,097 | — | 13,096 | — | 13,096 | ||||||||||||||||||||||
Other secured financings | Other secured financings | 4,658 | — | 4,659 | — | 4,659 | Other secured financings | 3,107 | — | 3,107 | — | 3,107 | ||||||||||||||||||||||
Customer and other payables | Customer and other payables | 240,293 | — | 240,293 | — | 240,293 | Customer and other payables | 229,272 | — | 229,272 | — | 229,272 | ||||||||||||||||||||||
Borrowings | Borrowings | 154,010 | — | 160,131 | 4 | 160,135 | Borrowings | 151,635 | — | 148,105 | 4 | 148,109 | ||||||||||||||||||||||
Commitment Amount | Commitment Amount | |||||||||||||||||||||||||||||||||
Lending commitments2 | Lending commitments2 | $ | 136,040 | $ | — | $ | 682 | $ | 423 | $ | 1,105 | Lending commitments2 | $ | 135,899 | $ | — | $ | 2,065 | $ | 880 | $ | 2,945 |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||||||||
$ in millions | $ in millions | Level 1 | Level 2 | Level 3 | Total | $ in millions | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Financial assets | Financial assets | Financial assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 105,654 | $ | 105,654 | $ | — | $ | — | $ | 105,654 | Cash and cash equivalents | $ | 127,725 | $ | 127,725 | $ | — | $ | — | $ | 127,725 | ||||||||||||
Investment securities—HTM | Investment securities—HTM | 71,771 | 31,239 | 42,281 | 900 | 74,420 | Investment securities—HTM | 80,168 | 29,454 | 49,352 | 1,076 | 79,882 | ||||||||||||||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | 116,219 | — | 114,046 | 2,173 | 116,219 | Securities purchased under agreements to resell | 119,992 | — | 117,922 | 2,075 | 119,997 | ||||||||||||||||||||||
Securities borrowed | Securities borrowed | 112,391 | — | 112,392 | — | 112,392 | Securities borrowed | 129,713 | — | 129,713 | — | 129,713 | ||||||||||||||||||||||
Customer and other receivables | Customer and other receivables | 92,907 | — | 89,832 | 3,041 | 92,873 | Customer and other receivables | 91,664 | — | 88,091 | 3,442 | 91,533 | ||||||||||||||||||||||
Loans1 | Loans1 | 150,597 | — | 16,635 | 135,277 | 151,912 | Loans1 | 188,134 | — | 25,706 | 163,784 | 189,490 | ||||||||||||||||||||||
Other assets | Other assets | 485 | — | 485 | — | 485 | Other assets | 528 | — | 528 | — | 528 | ||||||||||||||||||||||
Financial liabilities | Financial liabilities | Financial liabilities | ||||||||||||||||||||||||||||||||
Deposits | Deposits | $ | 307,261 | $ | — | $ | 307,807 | $ | — | $ | 307,807 | Deposits | $ | 345,634 | $ | — | $ | 345,911 | $ | — | $ | 345,911 | ||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | 49,472 | — | 49,315 | 195 | 49,510 | Securities sold under agreements to repurchase | 61,397 | — | 61,419 | — | 61,419 | ||||||||||||||||||||||
Securities loaned | Securities loaned | 7,731 | — | 7,731 | — | 7,731 | Securities loaned | 12,299 | — | 12,296 | — | 12,296 | ||||||||||||||||||||||
Other secured financings | Other secured financings | 4,162 | — | 4,162 | — | 4,162 | Other secured financings | 4,908 | — | 4,910 | — | 4,910 | ||||||||||||||||||||||
Customer and other payables | Customer and other payables | 224,951 | — | 224,951 | — | 224,951 | Customer and other payables | 228,631 | — | 228,631 | — | 228,631 | ||||||||||||||||||||||
Borrowings | Borrowings | 143,378 | — | 150,824 | 5 | 150,829 | Borrowings | 156,787 | — | 162,154 | 4 | 162,158 | ||||||||||||||||||||||
Commitment Amount | Commitment Amount | |||||||||||||||||||||||||||||||||
Lending commitments2 | Lending commitments2 | $ | 125,498 | $ | — | $ | 709 | $ | 395 | $ | 1,104 | Lending commitments2 | $ | 133,519 | $ | — | $ | 890 | $ | 470 | $ | 1,360 |
(Unaudited) |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Business Unit Responsible for Risk Management | Business Unit Responsible for Risk Management | Business Unit Responsible for Risk Management | ||||||||||||||
Equity | Equity | $ | 35,708 | $ | 33,952 | Equity | $ | 34,226 | $ | 37,046 | ||||||
Interest rates | Interest rates | 29,213 | 31,222 | Interest rates | 22,896 | 28,638 | ||||||||||
Commodities | Commodities | 7,968 | 5,078 | Commodities | 9,147 | 7,837 | ||||||||||
Credit | Credit | 1,274 | 1,344 | Credit | 1,220 | 1,347 | ||||||||||
Foreign exchange | Foreign exchange | 1,589 | 2,105 | Foreign exchange | 1,299 | 1,472 | ||||||||||
Total | Total | $ | 75,752 | $ | 73,701 | Total | $ | 68,788 | $ | 76,340 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Trading revenues | Trading revenues | $ | 1,383 | $ | (1,455) | $ | 937 | $ | (1,447) | Trading revenues | $ | 4,034 | $ | 1,383 | $ | 16,361 | $ | 937 | ||||||||||
Interest expense | Interest expense | 77 | 77 | 234 | 241 | Interest expense | 67 | 77 | 203 | 234 | ||||||||||||||||||
Net revenues1 | Net revenues1 | $ | 1,306 | $ | (1,532) | $ | 703 | $ | (1,688) | Net revenues1 | $ | 3,967 | $ | 1,306 | $ | 16,158 | $ | 703 |
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||
$ in millions | $ in millions | Trading Revenues | OCI | Trading Revenues | OCI | $ in millions | Trading Revenues | OCI | Trading Revenues | OCI | ||||||||||||||||||
Loans and other debt1 | $ | 58 | $ | — | $ | 56 | $ | — | ||||||||||||||||||||
Loans and other receivables1 | Loans and other receivables1 | $ | (68) | $ | — | $ | 58 | $ | — | |||||||||||||||||||
Lending commitments | Lending commitments | (3) | — | (3) | — | Lending commitments | (2) | — | (3) | — | ||||||||||||||||||
Deposits | Deposits | — | 6 | — | (19) | Deposits | — | (9) | — | 6 | ||||||||||||||||||
Borrowings | Borrowings | (9) | 190 | (8) | (720) | Borrowings | — | 1,091 | (9) | 190 |
Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
$ in millions | Trading Revenues | OCI | Trading Revenues | OCI | ||||||||||
Loans and other receivables1 | $ | (59) | $ | — | $ | 311 | $ | — | ||||||
Lending commitments | (3) | — | (2) | — | ||||||||||
Deposits | — | 5 | — | 15 | ||||||||||
Borrowings | 1 | 3,468 | (36) | 612 |
47 | September 2022 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
Nine Months Ended September 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
$ in millions | Trading Revenues | OCI | Trading Revenues | OCI | ||||||||||
Loans and other debt1 | $ | 311 | $ | — | $ | (183) | $ | — | ||||||
Lending commitments | (2) | — | (2) | — | ||||||||||
Deposits | — | 15 | — | (10) | ||||||||||
Borrowings | (36) | 612 | (14) | 991 | ||||||||||
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Cumulative pre-tax DVA gain (loss) recognized in AOCI | Cumulative pre-tax DVA gain (loss) recognized in AOCI | $ | (2,730) | $ | (3,357) | Cumulative pre-tax DVA gain (loss) recognized in AOCI | $ | 1,034 | $ | (2,439) |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Loans and other debt2 | $ | 13,053 | $ | 14,042 | ||||||||||||
Loans and other receivables2 | Loans and other receivables2 | $ | 10,908 | $ | 12,633 | |||||||||||
Nonaccrual loans2 | Nonaccrual loans2 | 10,732 | 11,551 | Nonaccrual loans2 | 8,192 | 9,999 | ||||||||||
Borrowings3 | Borrowings3 | (2,382) | (3,773) | Borrowings3 | 5,558 | (2,106) |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Nonaccrual loans | Nonaccrual loans | $ | 943 | $ | 1,407 | Nonaccrual loans | $ | 440 | $ | 989 | ||||||
Nonaccrual loans 90 or more days past due | Nonaccrual loans 90 or more days past due | 321 | 239 | Nonaccrual loans 90 or more days past due | 41 | 363 |
Assets at September 30, 2022 | ||||||||||||||
$ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 53 | $ | 1 | $ | — | $ | 54 | ||||||
Foreign exchange | 332 | 137 | — | 469 | ||||||||||
Total | 385 | 138 | — | 523 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic hedges of loans | ||||||||||||||
Credit | 2 | 112 | — | 114 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 158,740 | 31,664 | 2,074 | 192,478 | ||||||||||
Credit | 7,627 | 3,027 | — | 10,654 | ||||||||||
Foreign exchange | 163,229 | 4,476 | 70 | 167,775 | ||||||||||
Equity | 25,922 | — | 35,754 | 61,676 | ||||||||||
Commodity and other | 33,833 | — | 13,177 | 47,010 | ||||||||||
Total | 389,353 | 39,279 | 51,075 | 479,707 | ||||||||||
Total gross derivatives | $ | 389,738 | $ | 39,417 | $ | 51,075 | $ | 480,230 | ||||||
Amounts offset | ||||||||||||||
Counterparty netting | (270,565) | (37,449) | (48,859) | (356,873) | ||||||||||
Cash collateral netting | (55,266) | (1,841) | — | (57,107) | ||||||||||
Total in Trading assets | $ | 63,907 | $ | 127 | $ | 2,216 | $ | 66,250 | ||||||
Amounts not offset1 | ||||||||||||||
Financial instruments collateral | (28,876) | — | — | (28,876) | ||||||||||
Net amounts | $ | 35,031 | $ | 127 | $ | 2,216 | $ | 37,374 | ||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | 8,565 |
Liabilities at September 30, 2022 | ||||||||||||||
$ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 427 | $ | 1 | $ | — | $ | 428 | ||||||
Foreign exchange | 56 | 3 | — | 59 | ||||||||||
Total | 483 | 4 | — | 487 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic hedges of loans | ||||||||||||||
Credit | 8 | 231 | — | 239 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 147,347 | 34,480 | 940 | 182,767 | ||||||||||
Credit | 7,057 | 3,135 | — | 10,192 | ||||||||||
Foreign exchange | 155,524 | 3,971 | 75 | 159,570 | ||||||||||
Equity | 31,341 | — | 38,464 | 69,805 | ||||||||||
Commodity and other | 25,455 | — | 14,108 | 39,563 | ||||||||||
Total | 366,732 | 41,817 | 53,587 | 462,136 | ||||||||||
Total gross derivatives | $ | 367,215 | $ | 41,821 | $ | 53,587 | $ | 462,623 | ||||||
Amounts offset | ||||||||||||||
Counterparty netting | (270,565) | (37,449) | (48,859) | (356,873) | ||||||||||
Cash collateral netting | (56,300) | (1,188) | — | (57,488) | ||||||||||
Total in Trading liabilities | $ | 40,350 | $ | 3,184 | $ | 4,728 | $ | 48,262 | ||||||
Amounts not offset1 | ||||||||||||||
Financial instruments collateral | (2,927) | — | (2,899) | (5,826) | ||||||||||
Net amounts | $ | 37,423 | $ | 3,184 | $ | 1,829 | $ | 42,436 | ||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | 8,279 |
September |
Notes to Consolidated Financial Statements (Unaudited) |
Assets at December 31, 2021 | ||||||||||||||
$ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 594 | $ | 1 | $ | — | $ | 595 | ||||||
Foreign exchange | 191 | 6 | — | 197 | ||||||||||
Total | 785 | 7 | — | 792 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic hedges of loans | ||||||||||||||
Credit | — | 15 | — | 15 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 147,585 | 7,002 | 383 | 154,970 | ||||||||||
Credit | 5,749 | 3,186 | — | 8,935 | ||||||||||
Foreign exchange | 73,276 | 1,219 | 39 | 74,534 | ||||||||||
Equity | 28,877 | — | 41,455 | 70,332 | ||||||||||
Commodity and other | 22,175 | — | 5,538 | 27,713 | ||||||||||
Total | 277,662 | 11,422 | 47,415 | 336,499 | ||||||||||
Total gross derivatives | $ | 278,447 | $ | 11,429 | $ | 47,415 | $ | 337,291 | ||||||
Amounts offset | ||||||||||||||
Counterparty netting | (201,729) | (9,818) | (42,883) | (254,430) | ||||||||||
Cash collateral netting | (43,495) | (1,212) | — | (44,707) | ||||||||||
Total in Trading assets | $ | 33,223 | $ | 399 | $ | 4,532 | $ | 38,154 | ||||||
Amounts not offset1 | ||||||||||||||
Financial instruments collateral | (10,457) | — | — | (10,457) | ||||||||||
Net amounts | $ | 22,766 | $ | 399 | $ | 4,532 | $ | 27,697 | ||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | 6,725 |
Assets at September 30, 2021 | ||||||||||||||
$ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 578 | $ | 9 | $ | — | $ | 587 | ||||||
Foreign exchange | 145 | 15 | — | 160 | ||||||||||
Total | 723 | 24 | — | 747 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit | 1 | 16 | — | 17 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 154,421 | 7,628 | 221 | 162,270 | ||||||||||
Credit | 5,624 | 3,932 | — | 9,556 | ||||||||||
Foreign exchange | 72,129 | 1,301 | 53 | 73,483 | ||||||||||
Equity | 29,159 | — | 42,011 | 71,170 | ||||||||||
Commodity and other | 28,545 | — | 14,178 | 42,723 | ||||||||||
Total | 289,879 | 12,877 | 56,463 | 359,219 | ||||||||||
Total gross derivatives | $ | 290,602 | $ | 12,901 | $ | 56,463 | $ | 359,966 | ||||||
Amounts offset | ||||||||||||||
Counterparty netting | (205,701) | (11,014) | (52,930) | (269,645) | ||||||||||
Cash collateral netting | (45,163) | (1,759) | — | (46,922) | ||||||||||
Total in Trading assets | $ | 39,738 | $ | 128 | $ | 3,533 | $ | 43,399 | ||||||
Amounts not offset1 | ||||||||||||||
Financial instruments collateral | (12,419) | — | — | (12,419) | ||||||||||
Net amounts | $ | 27,319 | $ | 128 | $ | 3,533 | $ | 30,980 | ||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | 4,385 |
Liabilities at September 30, 2021 | ||||||||||||||
$ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | — | $ | — | $ | — | $ | — | ||||||
Foreign exchange | 7 | 20 | — | 27 | ||||||||||
Total | 7 | 20 | — | 27 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit | 15 | 229 | — | 244 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 144,921 | 6,683 | 350 | 151,954 | ||||||||||
Credit | 5,508 | 4,463 | — | 9,971 | ||||||||||
Foreign exchange | 68,163 | 1,334 | 52 | 69,549 | ||||||||||
Equity | 39,690 | — | 43,296 | 82,986 | ||||||||||
Commodity and other | 22,708 | — | 14,480 | 37,188 | ||||||||||
Total | 281,005 | 12,709 | 58,178 | 351,892 | ||||||||||
Total gross derivatives | $ | 281,012 | $ | 12,729 | $ | 58,178 | $ | 351,919 | ||||||
Amounts offset | ||||||||||||||
Counterparty netting | (205,701) | (11,014) | (52,930) | (269,645) | ||||||||||
Cash collateral netting | (42,471) | (1,087) | — | (43,558) | ||||||||||
Total in Trading liabilities | $ | 32,840 | $ | 628 | $ | 5,248 | $ | 38,716 | ||||||
Amounts not offset1 | ||||||||||||||
Financial instruments collateral | (6,226) | — | (1,007) | (7,233) | ||||||||||
Net amounts | $ | 26,614 | $ | 628 | $ | 4,241 | $ | 31,483 | ||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | 7,103 |
Assets at December 31, 2020 | ||||||||||||||
$ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 946 | $ | 2 | $ | — | $ | 948 | ||||||
Foreign exchange | 5 | 2 | — | 7 | ||||||||||
Total | 951 | 4 | — | 955 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit2 | 2 | 51 | — | 53 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 221,895 | 10,343 | 300 | 232,538 | ||||||||||
Credit2 | 5,341 | 2,147 | — | 7,488 | ||||||||||
Foreign exchange | 92,334 | 1,639 | 79 | 94,052 | ||||||||||
Equity | 34,278 | — | 34,166 | 68,444 | ||||||||||
Commodity and other | 11,095 | — | 3,554 | 14,649 | ||||||||||
Total | 364,945 | 14,180 | 38,099 | 417,224 | ||||||||||
Total gross derivatives | $ | 365,896 | $ | 14,184 | $ | 38,099 | $ | 418,179 | ||||||
Amounts offset | ||||||||||||||
Counterparty netting | (276,682) | (11,601) | (35,260) | (323,543) | ||||||||||
Cash collateral netting | (54,921) | (1,865) | — | (56,786) | ||||||||||
Total in Trading assets | $ | 34,293 | $ | 718 | $ | 2,839 | $ | 37,850 | ||||||
Amounts not offset1 | ||||||||||||||
Financial instruments collateral | (13,319) | — | — | (13,319) | ||||||||||
Other cash collateral | (391) | — | — | (391) | ||||||||||
Net amounts | $ | 20,583 | $ | 718 | $ | 2,839 | $ | 24,140 | ||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | 3,743 | ||||||||||||
Liabilities at December 31, 2020 | Liabilities at December 31, 2021 | |||||||||||||||||||||||||||
$ in millions | $ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | $ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||||||||||
Designated as accounting hedges | Designated as accounting hedges | Designated as accounting hedges | ||||||||||||||||||||||||||
Interest rate | Interest rate | $ | — | $ | 19 | $ | — | $ | 19 | Interest rate | $ | 86 | $ | 1 | $ | — | $ | 87 | ||||||||||
Foreign exchange | Foreign exchange | 291 | 99 | — | 390 | Foreign exchange | 57 | 50 | — | 107 | ||||||||||||||||||
Total | Total | 291 | 118 | — | 409 | Total | 143 | 51 | — | 194 | ||||||||||||||||||
Not designated as accounting hedges | Not designated as accounting hedges | Not designated as accounting hedges | ||||||||||||||||||||||||||
Economic loan hedges | ||||||||||||||||||||||||||||
Credit2 | 18 | 177 | — | 195 | ||||||||||||||||||||||||
Economic hedges of loans | Economic hedges of loans | |||||||||||||||||||||||||||
Credit | Credit | 17 | 412 | — | 429 | |||||||||||||||||||||||
Other derivatives | Other derivatives | Other derivatives | ||||||||||||||||||||||||||
Interest rate | Interest rate | 210,015 | 7,965 | 639 | 218,619 | Interest rate | 140,770 | 6,112 | 233 | 147,115 | ||||||||||||||||||
Credit2 | 5,275 | 2,682 | — | 7,957 | ||||||||||||||||||||||||
Credit | Credit | 5,609 | 3,463 | — | 9,072 | |||||||||||||||||||||||
Foreign exchange | Foreign exchange | 92,975 | 1,500 | 43 | 94,518 | Foreign exchange | 71,851 | 1,196 | 41 | 73,088 | ||||||||||||||||||
Equity | Equity | 49,943 | — | 36,585 | 86,528 | Equity | 39,597 | — | 41,081 | 80,678 | ||||||||||||||||||
Commodity and other | Commodity and other | 8,831 | — | 3,359 | 12,190 | Commodity and other | 17,188 | — | 5,740 | 22,928 | ||||||||||||||||||
Total | Total | 367,057 | 12,324 | 40,626 | 420,007 | Total | 275,032 | 11,183 | 47,095 | 333,310 | ||||||||||||||||||
Total gross derivatives | Total gross derivatives | $ | 367,348 | $ | 12,442 | $ | 40,626 | $ | 420,416 | Total gross derivatives | $ | 275,175 | $ | 11,234 | $ | 47,095 | $ | 333,504 | ||||||||||
Amounts offset | Amounts offset | Amounts offset | ||||||||||||||||||||||||||
Counterparty netting | Counterparty netting | (276,682) | (11,601) | (35,260) | (323,543) | Counterparty netting | (201,729) | (9,818) | (42,883) | (254,430) | ||||||||||||||||||
Cash collateral netting | Cash collateral netting | (51,112) | (823) | — | (51,935) | Cash collateral netting | (43,305) | (1,201) | — | (44,506) | ||||||||||||||||||
Total in Trading liabilities | Total in Trading liabilities | $ | 39,554 | $ | 18 | $ | 5,366 | $ | 44,938 | Total in Trading liabilities | $ | 30,141 | $ | 215 | $ | 4,212 | $ | 34,568 | ||||||||||
Amounts not offset1 | Amounts not offset1 | Amounts not offset1 | ||||||||||||||||||||||||||
Financial instruments collateral | Financial instruments collateral | (10,598) | — | (1,520) | (12,118) | Financial instruments collateral | (5,866) | (8) | (39) | (5,913) | ||||||||||||||||||
Other cash collateral | (62) | (3) | — | (65) | ||||||||||||||||||||||||
Net amounts | Net amounts | $ | 28,894 | $ | 15 | $ | 3,846 | $ | 32,755 | Net amounts | $ | 24,275 | $ | 207 | $ | 4,173 | $ | 28,655 | ||||||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | 6,746 | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | 6,194 |
Assets at September 30, 2022 | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 2 | $ | 49 | $ | — | $ | 51 | ||||||
Foreign exchange | 9 | 3 | — | 12 | ||||||||||
Total | 11 | 52 | — | 63 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic hedges of loans | ||||||||||||||
Credit | — | 5 | — | 5 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 3,320 | 7,486 | 616 | 11,422 | ||||||||||
Credit | 207 | 129 | — | 336 | ||||||||||
Foreign exchange | 3,600 | 147 | 9 | 3,756 | ||||||||||
Equity | 504 | — | 423 | 927 | ||||||||||
Commodity and other | 155 | — | 73 | 228 | ||||||||||
Total | 7,786 | 7,767 | 1,121 | 16,674 | ||||||||||
Total gross derivatives | $ | 7,797 | $ | 7,819 | $ | 1,121 | $ | 16,737 |
Liabilities at September 30, 2022 | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 3 | $ | 186 | $ | — | $ | 189 | ||||||
Foreign exchange | 3 | — | — | 3 | ||||||||||
Total | 6 | 186 | — | 192 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic hedges of loans | ||||||||||||||
Credit | — | 11 | — | 11 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 3,430 | 7,979 | 532 | 11,941 | ||||||||||
Credit | 194 | 131 | — | 325 | ||||||||||
Foreign exchange | 3,513 | 141 | 29 | 3,683 | ||||||||||
Equity | 503 | — | 603 | 1,106 | ||||||||||
Commodity and other | 113 | — | 93 | 206 | ||||||||||
Total | 7,753 | 8,262 | 1,257 | 17,272 | ||||||||||
Total gross derivatives | $ | 7,759 | $ | 8,448 | $ | 1,257 | $ | 17,464 |
Assets at December 31, 2021 | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 4 | $ | 104 | $ | — | $ | 108 | ||||||
Foreign exchange | 8 | 1 | — | 9 | ||||||||||
Total | 12 | 105 | — | 117 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic hedges of loans | ||||||||||||||
Credit | — | — | — | — | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 3,488 | 7,082 | 570 | 11,140 | ||||||||||
Credit | 216 | 105 | — | 321 | ||||||||||
Foreign exchange | 3,386 | 95 | 10 | 3,491 | ||||||||||
Equity | 495 | — | 407 | 902 | ||||||||||
Commodity and other | 139 | — | 73 | 212 | ||||||||||
Total | 7,724 | 7,282 | 1,060 | 16,066 | ||||||||||
Total gross derivatives | $ | 7,736 | $ | 7,387 | $ | 1,060 | $ | 16,183 |
49 | September |
Notes to Consolidated Financial Statements (Unaudited) |
Assets at September 30, 2021 | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 4 | $ | 103 | $ | — | $ | 107 | ||||||
Foreign exchange | 12 | 1 | — | 13 | ||||||||||
Total | 16 | 104 | — | 120 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit | — | — | — | — | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 3,836 | 7,950 | 558 | 12,344 | ||||||||||
Credit | 213 | 130 | — | 343 | ||||||||||
Foreign exchange | 3,363 | 89 | 9 | 3,461 | ||||||||||
Equity | 522 | — | 459 | 981 | ||||||||||
Commodity and other | 142 | — | 83 | 225 | ||||||||||
Total | 8,076 | 8,169 | 1,109 | 17,354 | ||||||||||
Total gross derivatives | $ | 8,092 | $ | 8,273 | $ | 1,109 | $ | 17,474 |
Liabilities at September 30, 2021 | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | — | $ | 99 | $ | — | $ | 99 | ||||||
Foreign exchange | 3 | 2 | — | 5 | ||||||||||
Total | 3 | 101 | — | 104 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit | — | 7 | — | 7 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 3,924 | 7,979 | 505 | 12,408 | ||||||||||
Credit | 204 | 140 | — | 344 | ||||||||||
Foreign exchange | 3,230 | 87 | 20 | 3,337 | ||||||||||
Equity | 538 | — | 766 | 1,304 | ||||||||||
Commodity and other | 119 | — | 87 | 206 | ||||||||||
Total | 8,015 | 8,213 | 1,378 | 17,606 | ||||||||||
Total gross derivatives | $ | 8,018 | $ | 8,314 | $ | 1,378 | $ | 17,710 |
Assets at December 31, 2020 | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 6 | $ | 123 | $ | — | $ | 129 | ||||||
Foreign exchange | 2 | — | — | 2 | ||||||||||
Total | 8 | 123 | — | 131 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit1 | — | 1 | — | 1 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 3,847 | 6,946 | 409 | 11,202 | ||||||||||
Credit1 | 140 | 87 | — | 227 | ||||||||||
Foreign exchange | 3,046 | 103 | 10 | 3,159 | ||||||||||
Equity | 444 | — | 367 | 811 | ||||||||||
Commodity and other | 107 | — | 68 | 175 | ||||||||||
Total | 7,584 | 7,137 | 854 | 15,575 | ||||||||||
Total gross derivatives | $ | 7,592 | $ | 7,260 | $ | 854 | $ | 15,706 | ||||||
Liabilities at December 31, 2020 | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | — | $ | 80 | $ | — | $ | 80 | ||||||
Foreign exchange | 11 | 3 | — | 14 | ||||||||||
Total | 11 | 83 | — | 94 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit1 | 1 | 5 | — | 6 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 4,000 | 6,915 | 511 | 11,426 | ||||||||||
Credit1 | 142 | 93 | — | 235 | ||||||||||
Foreign exchange | 3,180 | 102 | 11 | 3,293 | ||||||||||
Equity | 474 | — | 591 | 1,065 | ||||||||||
Commodity and other | 93 | — | 68 | 161 | ||||||||||
Total | 7,890 | 7,115 | 1,181 | 16,186 | ||||||||||
Total gross derivatives | $ | 7,901 | $ | 7,198 | $ | 1,181 | $ | 16,280 | ||||||
Liabilities at December 31, 2021 | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | — | $ | 99 | $ | — | $ | 99 | ||||||
Foreign exchange | 5 | 3 | — | 8 | ||||||||||
Total | 5 | 102 | — | 107 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic hedges of loans | ||||||||||||||
Credit | 1 | 12 | — | 13 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 3,827 | 6,965 | 445 | 11,237 | ||||||||||
Credit | 225 | 106 | — | 331 | ||||||||||
Foreign exchange | 3,360 | 88 | 12 | 3,460 | ||||||||||
Equity | 552 | — | 735 | 1,287 | ||||||||||
Commodity and other | 110 | — | 81 | 191 | ||||||||||
Total | 8,075 | 7,171 | 1,273 | 16,519 | ||||||||||
Total gross derivatives | $ | 8,080 | $ | 7,273 | $ | 1,273 | $ | 16,626 |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Fair value hedges—Recognized in Interest income | Fair value hedges—Recognized in Interest income | Fair value hedges—Recognized in Interest income | ||||||||||||||||||||||||||
Interest rate contracts | Interest rate contracts | $ | 107 | $ | 12 | $ | 607 | $ | (68) | Interest rate contracts | $ | 846 | $ | 107 | $ | 2,037 | $ | 607 | ||||||||||
Investment Securities—AFS | Investment Securities—AFS | (82) | (11) | (509) | 78 | Investment Securities—AFS | (836) | (82) | (1,960) | (509) | ||||||||||||||||||
Fair value hedges—Recognized in Interest expense | Fair value hedges—Recognized in Interest expense | Fair value hedges—Recognized in Interest expense | ||||||||||||||||||||||||||
Interest rate contracts | Interest rate contracts | $ | (763) | $ | (1,004) | $ | (3,633) | $ | 5,908 | Interest rate contracts | $ | (5,379) | $ | (763) | $ | (15,629) | $ | (3,633) | ||||||||||
Deposits | Deposits | 15 | 62 | 73 | (153) | Deposits | 25 | 15 | 143 | 73 | ||||||||||||||||||
Borrowings | Borrowings | 796 | 915 | 3,547 | (5,844) | Borrowings | 5,372 | 796 | 15,499 | 3,547 | ||||||||||||||||||
Net investment hedges—Foreign exchange contracts | Net investment hedges—Foreign exchange contracts | Net investment hedges—Foreign exchange contracts | ||||||||||||||||||||||||||
Recognized in OCI | Recognized in OCI | $ | 225 | $ | (260) | $ | 524 | $ | 54 | Recognized in OCI | $ | 662 | $ | 225 | $ | 1,436 | $ | 524 | ||||||||||
Forward points excluded from hedge effectiveness testing—Recognized in Interest income | Forward points excluded from hedge effectiveness testing—Recognized in Interest income | (19) | (6) | (32) | 19 | Forward points excluded from hedge effectiveness testing—Recognized in Interest income | 18 | (19) | (59) | (32) |
(Unaudited) |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Investment Securities—AFS | Investment Securities—AFS | Investment Securities—AFS | ||||||||||||||
Amortized cost basis currently or previously hedged | Amortized cost basis currently or previously hedged | $ | 17,823 | $ | 16,288 | Amortized cost basis currently or previously hedged | $ | 26,017 | $ | 17,902 | ||||||
Basis adjustments included in amortized cost1 | Basis adjustments included in amortized cost1 | $ | (459) | $ | (39) | Basis adjustments included in amortized cost1 | $ | (1,847) | $ | (591) | ||||||
Deposits | Deposits | Deposits | ||||||||||||||
Carrying amount currently or previously hedged | Carrying amount currently or previously hedged | $ | 4,672 | $ | 15,059 | Carrying amount currently or previously hedged | $ | 4,319 | $ | 6,279 | ||||||
Basis adjustments included in carrying amount1 | Basis adjustments included in carrying amount1 | $ | 20 | $ | 93 | Basis adjustments included in carrying amount1 | $ | (138) | $ | 5 | ||||||
Borrowings | Borrowings | Borrowings | ||||||||||||||
Carrying amount currently or previously hedged | Carrying amount currently or previously hedged | $ | 120,111 | $ | 114,349 | Carrying amount currently or previously hedged | $ | 135,864 | $ | 122,919 | ||||||
Basis adjustments included in carrying amount—Outstanding hedges | Basis adjustments included in carrying amount—Outstanding hedges | $ | 2,996 | $ | 6,575 | Basis adjustments included in carrying amount—Outstanding hedges | $ | (13,052) | $ | 2,324 | ||||||
Basis adjustments included in carrying amount—Terminated hedges | Basis adjustments included in carrying amount—Terminated hedges | $ | (750) | $ | (756) | Basis adjustments included in carrying amount—Terminated hedges | $ | (722) | $ | (743) |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Recognized in Other revenues | Recognized in Other revenues | Recognized in Other revenues | ||||||||||||||||||||||||||
Credit contracts1 | Credit contracts1 | $ | (21) | $ | (58) | $ | (170) | $ | 77 | Credit contracts1 | $ | (44) | $ | (21) | $ | 160 | $ | (170) |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Net derivative liabilities with credit risk-related contingent features | Net derivative liabilities with credit risk-related contingent features | $ | 22,199 | $ | 30,421 | Net derivative liabilities with credit risk-related contingent features | $ | 23,750 | $ | 20,548 | ||||||
Collateral posted | Collateral posted | 15,433 | 23,842 | Collateral posted | 14,427 | 14,789 |
$ in millions | At September 30, | ||||
One-notch downgrade | $ | ||||
Two-notch downgrade | |||||
Bilateral downgrade agreements included in the amounts above1 | $ |
September 2022 Form 10-Q | 50 |
Notes to Consolidated Financial Statements (Unaudited) |
Years to Maturity at September 30, 2021 | Years to Maturity at September 30, 2022 | |||||||||||||||||||||||||||||||||
$ in billions | $ in billions | < 1 | 1-3 | 3-5 | Over 5 | Total | $ in billions | < 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||||||||||||
Single-name CDS | Single-name CDS | Single-name CDS | ||||||||||||||||||||||||||||||||
Investment grade | Investment grade | $ | 9 | $ | 22 | $ | 30 | $ | 14 | $ | 75 | Investment grade | $ | 11 | $ | 28 | $ | 27 | $ | 13 | $ | 79 | ||||||||||||
Non-investment grade | Non-investment grade | 5 | 12 | 16 | 5 | 38 | Non-investment grade | 5 | 12 | 16 | 5 | 38 | ||||||||||||||||||||||
Total | Total | $ | 14 | $ | 34 | $ | 46 | $ | 19 | $ | 113 | Total | $ | 16 | $ | 40 | $ | 43 | $ | 18 | $ | 117 | ||||||||||||
Index and basket CDS | Index and basket CDS | Index and basket CDS | ||||||||||||||||||||||||||||||||
Investment grade | Investment grade | $ | 2 | $ | 8 | $ | 84 | $ | 37 | $ | 131 | Investment grade | $ | 2 | $ | 11 | $ | 70 | $ | 44 | $ | 127 | ||||||||||||
Non-investment grade | Non-investment grade | 7 | 14 | 37 | 25 | 83 | Non-investment grade | 8 | 17 | 39 | 20 | 84 | ||||||||||||||||||||||
Total | Total | $ | 9 | $ | 22 | $ | 121 | $ | 62 | $ | 214 | Total | $ | 10 | $ | 28 | $ | 109 | $ | 64 | $ | 211 | ||||||||||||
Total CDS sold | Total CDS sold | $ | 23 | $ | 56 | $ | 167 | $ | 81 | $ | 327 | Total CDS sold | $ | 26 | $ | 68 | $ | 152 | $ | 82 | $ | 328 | ||||||||||||
Other credit contracts | Other credit contracts | — | — | — | — | — | Other credit contracts | — | — | — | — | — | ||||||||||||||||||||||
Total credit protection sold | Total credit protection sold | $ | 23 | $ | 56 | $ | 167 | $ | 81 | $ | 327 | Total credit protection sold | $ | 26 | $ | 68 | $ | 152 | $ | 82 | $ | 328 | ||||||||||||
CDS protection sold with identical protection purchased | CDS protection sold with identical protection purchased | $ | 283 | CDS protection sold with identical protection purchased | $ | 273 |
Years to Maturity at December 31, 2020 | Years to Maturity at December 31, 2021 | |||||||||||||||||||||||||||||||||
$ in billions | $ in billions | < 1 | 1-3 | 3-5 | Over 5 | Total | $ in billions | < 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||||||||||||
Single-name CDS | Single-name CDS | Single-name CDS | ||||||||||||||||||||||||||||||||
Investment grade | Investment grade | $ | 9 | $ | 19 | $ | 32 | $ | 9 | $ | 69 | Investment grade | $ | 10 | $ | 26 | $ | 29 | $ | 9 | $ | 74 | ||||||||||||
Non-investment grade | Non-investment grade | 7 | 10 | 17 | 2 | 36 | Non-investment grade | 5 | 13 | 17 | 2 | 37 | ||||||||||||||||||||||
Total | Total | $ | 16 | $ | 29 | $ | 49 | $ | 11 | $ | 105 | Total | $ | 15 | $ | 39 | $ | 46 | $ | 11 | $ | 111 | ||||||||||||
Index and basket CDS | Index and basket CDS | Index and basket CDS | ||||||||||||||||||||||||||||||||
Investment grade | Investment grade | $ | 2 | $ | 5 | $ | 39 | $ | 14 | $ | 60 | Investment grade | $ | 2 | $ | 11 | $ | 106 | $ | 15 | $ | 134 | ||||||||||||
Non-investment grade | Non-investment grade | 6 | 9 | 29 | 14 | 58 | Non-investment grade | 9 | 14 | 37 | 12 | 72 | ||||||||||||||||||||||
Total | Total | $ | 8 | $ | 14 | $ | 68 | $ | 28 | $ | 118 | Total | $ | 11 | $ | 25 | $ | 143 | $ | 27 | $ | 206 | ||||||||||||
Total CDS sold | Total CDS sold | $ | 24 | $ | 43 | $ | 117 | $ | 39 | $ | 223 | Total CDS sold | $ | 26 | $ | 64 | $ | 189 | $ | 38 | $ | 317 | ||||||||||||
Other credit contracts | Other credit contracts | — | — | — | — | — | Other credit contracts | — | — | — | — | — | ||||||||||||||||||||||
Total credit protection sold | Total credit protection sold | $ | 24 | $ | 43 | $ | 117 | $ | 39 | $ | 223 | Total credit protection sold | $ | 26 | $ | 64 | $ | 189 | $ | 38 | $ | 317 | ||||||||||||
CDS protection sold with identical protection purchased | CDS protection sold with identical protection purchased | $ | 196 | CDS protection sold with identical protection purchased | $ | 278 |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Single-name CDS | Single-name CDS | Single-name CDS | ||||||||||||||
Investment grade | Investment grade | $ | 1,532 | $ | 1,230 | Investment grade | $ | 145 | $ | 1,428 | ||||||
Non-investment grade | Non-investment grade | (18) | (22) | Non-investment grade | (1,886) | (370) | ||||||||||
Total | Total | $ | 1,514 | $ | 1,208 | Total | $ | (1,741) | $ | 1,058 | ||||||
Index and basket CDS | Index and basket CDS | Index and basket CDS | ||||||||||||||
Investment grade | Investment grade | $ | 1,590 | $ | 843 | Investment grade | $ | (194) | $ | 1,393 | ||||||
Non-investment grade | Non-investment grade | (82) | (824) | Non-investment grade | (4,125) | (650) | ||||||||||
Total | Total | $ | 1,508 | $ | 19 | Total | $ | (4,319) | $ | 743 | ||||||
Total CDS sold | Total CDS sold | $ | 3,022 | $ | 1,227 | Total CDS sold | $ | (6,060) | $ | 1,801 | ||||||
Other credit contracts | Other credit contracts | (3) | (4) | Other credit contracts | (2) | (3) | ||||||||||
Total credit protection sold | Total credit protection sold | $ | 3,019 | $ | 1,223 | Total credit protection sold | $ | (6,062) | $ | 1,798 |
(Unaudited) |
Notional | Notional | |||||||||||||||
$ in billions | $ in billions | At September 30, 2021 | At December 31, 2020 | $ in billions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Single name | Single name | $ | 123 | $ | 116 | Single name | $ | 139 | $ | 126 | ||||||
Index and basket | Index and basket | 228 | 116 | Index and basket | 184 | 204 | ||||||||||
Tranched index and basket | Tranched index and basket | 16 | 14 | Tranched index and basket | 26 | 18 | ||||||||||
Total | Total | $ | 367 | $ | 246 | Total | $ | 349 | $ | 348 |
Fair Value Asset (Liability) | Fair Value Asset (Liability) | |||||||||||||||
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Single name | Single name | $ | (1,811) | $ | (1,452) | Single name | $ | 1,970 | $ | (1,338) | ||||||
Index and basket | Index and basket | (1,535) | (57) | Index and basket | 3,986 | (563) | ||||||||||
Tranched index and basket | Tranched index and basket | (318) | (329) | Tranched index and basket | 441 | (451) | ||||||||||
Total | Total | $ | (3,664) | $ | (1,838) | Total | $ | 6,397 | $ | (2,352) |
At September 30, 2021 | At September 30, 2022 | |||||||||||||||||||||||||||
$ in millions | $ in millions | Amortized Cost1 | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | $ in millions | Amortized Cost1 | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||
AFS securities | AFS securities | AFS securities | ||||||||||||||||||||||||||
U.S. Treasury securities | U.S. Treasury securities | $ | 55,344 | $ | 555 | $ | 83 | $ | 55,816 | U.S. Treasury securities | $ | 56,113 | $ | 9 | $ | 2,504 | $ | 53,618 | ||||||||||
U.S. agency securities2 | U.S. agency securities2 | 28,383 | 386 | 188 | 28,581 | U.S. agency securities2 | 23,918 | 1 | 2,879 | 21,040 | ||||||||||||||||||
Agency CMBS | Agency CMBS | 14,881 | 342 | 65 | 15,158 | Agency CMBS | 6,144 | 3 | 449 | 5,698 | ||||||||||||||||||
State and municipal securities | State and municipal securities | 285 | 26 | 6 | 305 | State and municipal securities | 2,170 | 14 | 90 | 2,094 | ||||||||||||||||||
FFELP student loan ABS3 | FFELP student loan ABS3 | 1,728 | 15 | 9 | 1,734 | FFELP student loan ABS3 | 1,213 | — | 30 | 1,183 | ||||||||||||||||||
Total AFS securities | Total AFS securities | 100,621 | 1,324 | 351 | 101,594 | Total AFS securities | 89,558 | 27 | 5,952 | 83,633 | ||||||||||||||||||
HTM securities | HTM securities | HTM securities | ||||||||||||||||||||||||||
U.S. Treasury securities | U.S. Treasury securities | 29,684 | 1,103 | 61 | 30,726 | U.S. Treasury securities | 29,589 | — | 1,932 | 27,657 | ||||||||||||||||||
U.S. agency securities2 | U.S. agency securities2 | 48,871 | 267 | 1,055 | 48,083 | U.S. agency securities2 | 44,945 | — | 9,006 | 35,939 | ||||||||||||||||||
Agency CMBS | Agency CMBS | 2,331 | — | 34 | 2,297 | Agency CMBS | 1,954 | — | 172 | 1,782 | ||||||||||||||||||
Non-agency CMBS | Non-agency CMBS | 951 | 34 | 3 | 982 | Non-agency CMBS | 1,148 | — | 133 | 1,015 | ||||||||||||||||||
Total HTM securities | Total HTM securities | 81,837 | 1,404 | 1,153 | 82,088 | Total HTM securities | 77,636 | — | 11,243 | 66,393 | ||||||||||||||||||
Total investment securities | Total investment securities | $ | 182,458 | $ | 2,728 | $ | 1,504 | $ | 183,682 | Total investment securities | $ | 167,194 | $ | 27 | $ | 17,195 | $ | 150,026 |
51 | September 2022 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||||||||
$ in millions | $ in millions | Amortized Cost1 | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | $ in millions | Amortized Cost1 | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||
AFS securities | AFS securities | AFS securities | ||||||||||||||||||||||||||
U.S. Treasury securities | U.S. Treasury securities | $ | 45,345 | $ | 1,010 | $ | — | $ | 46,355 | U.S. Treasury securities | $ | 58,974 | $ | 343 | $ | 296 | $ | 59,021 | ||||||||||
U.S. agency securities2 | U.S. agency securities2 | 37,389 | 762 | 25 | 38,126 | U.S. agency securities2 | 26,780 | 274 | 241 | 26,813 | ||||||||||||||||||
Agency CMBS | Agency CMBS | 19,982 | 465 | 9 | 20,438 | Agency CMBS | 14,476 | 289 | 89 | 14,676 | ||||||||||||||||||
Corporate bonds | 1,694 | 42 | — | 1,736 | ||||||||||||||||||||||||
State and municipal securities | State and municipal securities | 1,461 | 103 | 1 | 1,563 | State and municipal securities | 613 | 37 | 2 | 648 | ||||||||||||||||||
FFELP student loan ABS3 | FFELP student loan ABS3 | 1,735 | 7 | 26 | 1,716 | FFELP student loan ABS3 | 1,672 | 11 | 11 | 1,672 | ||||||||||||||||||
Other ABS | 449 | — | — | 449 | ||||||||||||||||||||||||
Total AFS securities | Total AFS securities | 108,055 | 2,389 | 61 | 110,383 | Total AFS securities | 102,515 | 954 | 639 | 102,830 | ||||||||||||||||||
HTM securities | HTM securities | HTM securities | ||||||||||||||||||||||||||
U.S. Treasury securities | U.S. Treasury securities | 29,346 | 1,893 | — | 31,239 | U.S. Treasury securities | 28,653 | 882 | 81 | 29,454 | ||||||||||||||||||
U.S. agency securities2 | U.S. agency securities2 | 38,951 | 704 | 8 | 39,647 | U.S. agency securities2 | 48,195 | 169 | 1,228 | 47,136 | ||||||||||||||||||
Agency CMBS | Agency CMBS | 2,632 | 4 | 2 | 2,634 | Agency CMBS | 2,267 | — | 51 | 2,216 | ||||||||||||||||||
Non-agency CMBS | Non-agency CMBS | 842 | 58 | — | 900 | Non-agency CMBS | 1,053 | 28 | 5 | 1,076 | ||||||||||||||||||
Total HTM securities | Total HTM securities | 71,771 | 2,659 | 10 | 74,420 | Total HTM securities | 80,168 | 1,079 | 1,365 | 79,882 | ||||||||||||||||||
Total investment securities | Total investment securities | $ | 179,826 | $ | 5,048 | $ | 71 | $ | 184,803 | Total investment securities | $ | 182,683 | $ | 2,033 | $ | 2,004 | $ | 182,712 |
At September 30, 2021 | At December 31, 2020 | At September 30, 2022 | At December 31, 2021 | |||||||||||||||||||||||||
$ in millions | $ in millions | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | $ in millions | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
U.S. Treasury securities | U.S. Treasury securities | U.S. Treasury securities | ||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | $ | 23,587 | $ | 83 | $ | 151 | $ | — | Less than 12 months | $ | 46,061 | $ | 1,923 | $ | 31,459 | $ | 296 | ||||||||||
12 months or longer | 12 months or longer | 6,673 | 581 | — | — | |||||||||||||||||||||||
Total | Total | 23,587 | 83 | 151 | — | Total | 52,734 | 2,504 | 31,459 | 296 | ||||||||||||||||||
U.S. agency securities | U.S. agency securities | U.S. agency securities | ||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | 11,116 | 170 | 5,808 | 22 | Less than 12 months | 15,301 | 1,602 | 12,283 | 219 | ||||||||||||||||||
12 months or longer | 12 months or longer | 839 | 18 | 1,168 | 3 | 12 months or longer | 5,708 | 1,277 | 1,167 | 22 | ||||||||||||||||||
Total | Total | 11,955 | 188 | 6,976 | 25 | Total | 21,009 | 2,879 | 13,450 | 241 | ||||||||||||||||||
Agency CMBS | Agency CMBS | Agency CMBS | ||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | 2,738 | 65 | 2,779 | 9 | Less than 12 months | 5,373 | 437 | 2,872 | 89 | ||||||||||||||||||
12 months or longer | 12 months or longer | 22 | — | 46 | — | 12 months or longer | 104 | 12 | 10 | — | ||||||||||||||||||
Total | Total | 2,760 | 65 | 2,825 | 9 | Total | 5,477 | 449 | 2,882 | 89 | ||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||||
12 months or longer | — | — | 31 | — | ||||||||||||||||||||||||
Total | — | — | 31 | — | ||||||||||||||||||||||||
State and municipal securities | State and municipal securities | State and municipal securities | ||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | 102 | 6 | 86 | — | Less than 12 months | 1,536 | 88 | 21 | 2 | ||||||||||||||||||
12 months or longer | 12 months or longer | — | — | 36 | 1 | 12 months or longer | 46 | 2 | 7 | — | ||||||||||||||||||
Total | Total | 102 | 6 | 122 | 1 | Total | 1,582 | 90 | 28 | 2 | ||||||||||||||||||
FFELP student loan ABS | FFELP student loan ABS | FFELP student loan ABS | ||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | 39 | — | — | — | Less than 12 months | 807 | 19 | 320 | 1 | ||||||||||||||||||
12 months or longer | 12 months or longer | 759 | 9 | 1,077 | 26 | 12 months or longer | 348 | 11 | 591 | 10 | ||||||||||||||||||
Total | Total | 798 | 9 | 1,077 | 26 | Total | 1,155 | 30 | 911 | 11 | ||||||||||||||||||
Total AFS securities in an unrealized loss position | Total AFS securities in an unrealized loss position | Total AFS securities in an unrealized loss position | ||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | 37,582 | 324 | 8,824 | 31 | Less than 12 months | 69,078 | 4,069 | 46,955 | 607 | ||||||||||||||||||
12 months or longer | 12 months or longer | 1,620 | 27 | 2,358 | 30 | 12 months or longer | 12,879 | 1,883 | 1,775 | 32 | ||||||||||||||||||
Total | Total | $ | 39,202 | $ | 351 | $ | 11,182 | $ | 61 | Total | $ | 81,957 | $ | 5,952 | $ | 48,730 | $ | 639 |
(Unaudited) |
At September 30, 2021 | |||||||||||
$ in millions | Amortized Cost1 | Fair Value | Annualized Average Yield | ||||||||
AFS securities | |||||||||||
U.S. Treasury securities: | |||||||||||
Due within 1 year | $ | 11,941 | $ | 12,031 | 1.4 | % | |||||
After 1 year through 5 years | 34,704 | 35,070 | 1.1 | % | |||||||
After 5 years through 10 years | 8,699 | 8,715 | 1.2 | % | |||||||
Total | 55,344 | 55,816 | |||||||||
U.S. agency securities: | |||||||||||
Due within 1 year | 3 | 3 | 1.2 | % | |||||||
After 1 year through 5 years | 132 | 134 | 1.3 | % | |||||||
After 5 years through 10 years | 1,402 | 1,438 | 1.8 | % | |||||||
After 10 years | 26,846 | 27,006 | 1.5 | % | |||||||
Total | 28,383 | 28,581 | |||||||||
Agency CMBS: | |||||||||||
Due within 1 year | 193 | 194 | 1.7 | % | |||||||
After 1 year through 5 years | 1,926 | 1,964 | 1.7 | % | |||||||
After 5 years through 10 years | 9,974 | 10,257 | 1.6 | % | |||||||
After 10 years | 2,788 | 2,743 | 1.4 | % | |||||||
Total | 14,881 | 15,158 | |||||||||
State and municipal securities: | |||||||||||
Due within 1 year | 4 | 4 | 1.9 | % | |||||||
After 1 year through 5 years | 22 | 22 | 1.8 | % | |||||||
After 5 years through 10 years | 49 | 58 | 2.1 | % | |||||||
After 10 Years | 210 | 221 | 2.0 | % | |||||||
Total | 285 | 305 | |||||||||
FFELP student loan ABS: | |||||||||||
Due within 1 year | 31 | 31 | 0.8 | % | |||||||
After 1 year through 5 years | 183 | 180 | 0.9 | % | |||||||
After 5 years through 10 years | 148 | 144 | 0.7 | % | |||||||
After 10 years | 1,366 | 1,379 | 1.2 | % | |||||||
Total | 1,728 | 1,734 | |||||||||
Total AFS securities | 100,621 | 101,594 | 1.3 | % | |||||||
At September 30, 2021 | |||||||||||
$ in millions | Amortized Cost1 | Fair Value | Annualized Average Yield | ||||||||
HTM securities | |||||||||||
U.S. Treasury securities: | |||||||||||
Due within 1 year | 4,022 | 4,058 | 1.9 | % | |||||||
After 1 year through 5 years | 18,673 | 19,217 | 1.7 | % | |||||||
After 5 years through 10 years | 5,426 | 5,811 | 2.4 | % | |||||||
After 10 years | 1,563 | 1,640 | 2.3 | % | |||||||
Total | 29,684 | 30,726 | |||||||||
U.S. agency securities: | |||||||||||
After 5 years through 10 years | 497 | 512 | 2.0 | % | |||||||
After 10 years | 48,374 | 47,571 | 1.6 | % | |||||||
Total | 48,871 | 48,083 | |||||||||
Agency CMBS: | |||||||||||
Due within 1 year | 46 | 46 | 1.1 | % | |||||||
After 1 year through 5 years | 1,193 | 1,181 | 1.3 | % | |||||||
After 5 years through 10 years | 939 | 922 | 1.4 | % | |||||||
After 10 years | 153 | 148 | 1.5 | % | |||||||
Total | 2,331 | 2,297 | |||||||||
Non-agency CMBS: | |||||||||||
Due within 1 year | 151 | 151 | 4.5 | % | |||||||
After 1 year through 5 years | 61 | 62 | 2.6 | % | |||||||
After 5 years through 10 years | 703 | 730 | 3.6 | % | |||||||
After 10 years | 36 | 39 | 4.4 | % | |||||||
Total | 951 | 982 | |||||||||
Total HTM securities | 81,837 | 82,088 | 1.7 | % | |||||||
Total investment securities | $ | 182,458 | $ | 183,682 | 1.5 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Gross realized gains | $ | 17 | $ | 55 | $ | 236 | $ | 120 | ||||||
Gross realized (losses) | — | — | (27) | (14) | ||||||||||
Total1 | $ | 17 | $ | 55 | $ | 209 | $ | 106 |
At September 30, 2022 | |||||||||||
$ in millions | Amortized Cost1 | Fair Value | Annualized Average Yield2 | ||||||||
AFS securities | |||||||||||
U.S. Treasury securities: | |||||||||||
Due within 1 year | $ | 12,692 | $ | 12,438 | 1.1 | % | |||||
After 1 year through 5 years | 40,430 | 38,199 | 1.2 | % | |||||||
After 5 years through 10 years | 2,991 | 2,981 | 1.1 | % | |||||||
Total | 56,113 | 53,618 | |||||||||
U.S. agency securities: | |||||||||||
Due within 1 year | 4 | 5 | 0.9 | % | |||||||
After 1 year through 5 years | 415 | 382 | 1.4 | % | |||||||
After 5 years through 10 years | 919 | 831 | 1.8 | % | |||||||
After 10 years | 22,580 | 19,822 | 1.7 | % | |||||||
Total | 23,918 | 21,040 | |||||||||
Agency CMBS: | |||||||||||
Due within 1 year | 119 | 118 | 1.8 | % | |||||||
After 1 year through 5 years | 854 | 783 | 2.1 | % | |||||||
After 5 years through 10 years | 3,856 | 3,680 | 1.8 | % | |||||||
After 10 years | 1,315 | 1,117 | 1.2 | % | |||||||
Total | 6,144 | 5,698 | |||||||||
State and municipal securities: | |||||||||||
Due within 1 year | 33 | 34 | 2.5 | % | |||||||
After 1 year through 5 years | 28 | 29 | 2.6 | % | |||||||
After 5 years through 10 years | 65 | 62 | 2.6 | % | |||||||
After 10 Years | 2,044 | 1,969 | 3.2 | % | |||||||
Total | 2,170 | 2,094 | |||||||||
FFELP student loan ABS: | |||||||||||
After 1 year through 5 years | 122 | 118 | 0.9 | % | |||||||
After 5 years through 10 years | 129 | 124 | 0.7 | % | |||||||
After 10 years | 962 | 941 | 1.6 | % | |||||||
Total | 1,213 | 1,183 | |||||||||
Total AFS securities | 89,558 | 83,633 | 1.4 | % | |||||||
September |
Notes to Consolidated Financial Statements (Unaudited) |
At September 30, 2022 | |||||||||||
$ in millions | Amortized Cost1 | Fair Value | Annualized Average Yield2 | ||||||||
HTM securities | |||||||||||
U.S. Treasury securities: | |||||||||||
Due within 1 year | 3,429 | 3,397 | 1.9 | % | |||||||
After 1 year through 5 years | 20,732 | 19,573 | 1.8 | % | |||||||
After 5 years through 10 years | 3,867 | 3,515 | 2.4 | % | |||||||
After 10 years | 1,561 | 1,172 | 2.3 | % | |||||||
Total | 29,589 | 27,657 | |||||||||
U.S. agency securities: | |||||||||||
After 5 years through 10 years | 399 | 362 | 2.1 | % | |||||||
After 10 years | 44,546 | 35,577 | 1.8 | % | |||||||
Total | 44,945 | 35,939 | |||||||||
Agency CMBS: | |||||||||||
Due within 1 year | 60 | 59 | 1.0 | % | |||||||
After 1 year through 5 years | 1,528 | 1,418 | 1.3 | % | |||||||
After 5 years through 10 years | 226 | 192 | 1.5 | % | |||||||
After 10 years | 140 | 113 | 1.5 | % | |||||||
Total | 1,954 | 1,782 | |||||||||
Non-agency CMBS: | |||||||||||
Due within 1 year | 173 | 172 | 4.0 | % | |||||||
After 1 year through 5 years | 206 | 191 | 3.9 | % | |||||||
After 5 years through 10 years | 718 | 607 | 3.7 | % | |||||||
After 10 years | 51 | 45 | 3.7 | % | |||||||
Total | 1,148 | 1,015 | |||||||||
Total HTM securities | 77,636 | 66,393 | 1.9 | % | |||||||
Total investment securities | 167,194 | 150,026 | 1.6 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Gross realized gains | $ | 13 | $ | 17 | $ | 163 | $ | 236 | ||||||
Gross realized (losses) | (4) | — | (92) | (27) | ||||||||||
Total1 | $ | 9 | $ | 17 | $ | 71 | $ | 209 |
At September 30, 2021 | At September 30, 2022 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Gross Amounts | Amounts Offset | Balance Sheet Net Amounts | Amounts Not Offset1 | Net Amounts | $ in millions | Gross Amounts | Amounts Offset | Balance Sheet Net Amounts | Amounts Not Offset1 | Net Amounts | ||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | $ | 215,672 | $ | (95,951) | $ | 119,721 | $ | (116,787) | $ | 2,934 | Securities purchased under agreements to resell | $ | 207,180 | $ | (96,056) | $ | 111,124 | $ | (106,215) | $ | 4,909 | ||||||||||||
Securities borrowed | Securities borrowed | 136,731 | (10,809) | 125,922 | (119,047) | 6,875 | Securities borrowed | 148,654 | (12,176) | 136,478 | (130,579) | 5,899 | ||||||||||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | $ | 157,938 | $ | (95,951) | $ | 61,987 | $ | (54,226) | $ | 7,761 | Securities sold under agreements to repurchase | $ | 156,189 | $ | (96,056) | $ | 60,133 | $ | (55,748) | $ | 4,385 | ||||||||||||
Securities loaned | Securities loaned | 21,942 | (10,809) | 11,133 | (10,822) | 311 | Securities loaned | 25,273 | (12,176) | 13,097 | (12,664) | 433 | ||||||||||||||||||||||
Net amounts for which master netting agreements are not in place or may not be legally enforceable | Net amounts for which master netting agreements are not in place or may not be legally enforceable | Net amounts for which master netting agreements are not in place or may not be legally enforceable | ||||||||||||||||||||||||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | $ | 2,417 | Securities purchased under agreements to resell | $ | 2,773 | ||||||||||||||||||||||||||||
Securities borrowed | Securities borrowed | 2,006 | Securities borrowed | 820 | ||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | 7,167 | Securities sold under agreements to repurchase | 3,162 | ||||||||||||||||||||||||||||||
Securities loaned | Securities loaned | 173 | Securities loaned | 262 |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Gross Amounts | Amounts Offset | Balance Sheet Net Amounts | Amounts Not Offset1 | Net Amounts | $ in millions | Gross Amounts | Amounts Offset | Balance Sheet Net Amounts | Amounts Not Offset1 | Net Amounts | ||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | $ | 264,140 | $ | (147,906) | $ | 116,234 | $ | (114,108) | $ | 2,126 | Securities purchased under agreements to resell | $ | 197,486 | $ | (77,487) | $ | 119,999 | $ | (106,896) | $ | 13,103 | ||||||||||||
Securities borrowed | Securities borrowed | 124,921 | (12,530) | 112,391 | (107,434) | 4,957 | Securities borrowed | 139,395 | (9,682) | 129,713 | (124,028) | 5,685 | ||||||||||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | $ | 198,493 | $ | (147,906) | $ | 50,587 | $ | (43,960) | $ | 6,627 | Securities sold under agreements to repurchase | $ | 139,675 | $ | (77,487) | $ | 62,188 | $ | (53,692) | $ | 8,496 | ||||||||||||
Securities loaned | Securities loaned | 20,261 | (12,530) | 7,731 | (7,430) | 301 | Securities loaned | 21,981 | (9,682) | 12,299 | (12,019) | 280 | ||||||||||||||||||||||
Net amounts for which master netting agreements are not in place or may not be legally enforceable | Net amounts for which master netting agreements are not in place or may not be legally enforceable | Net amounts for which master netting agreements are not in place or may not be legally enforceable | ||||||||||||||||||||||||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | $ | 1,870 | Securities purchased under agreements to resell | $ | 12,514 | ||||||||||||||||||||||||||||
Securities borrowed | Securities borrowed | 596 | Securities borrowed | 1,041 | ||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | 6,282 | Securities sold under agreements to repurchase | 8,295 | ||||||||||||||||||||||||||||||
Securities loaned | Securities loaned | 128 | Securities loaned | 139 |
At September 30, 2021 | At September 30, 2022 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Overnight and Open | Less than 30 Days | 30-90 Days | Over 90 Days | Total | $ in millions | Overnight and Open | Less than 30 Days | 30-90 Days | Over 90 Days | Total | ||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | $ | 48,461 | $ | 53,458 | $ | 12,529 | $ | 43,490 | $ | 157,938 | Securities sold under agreements to repurchase | $ | 53,042 | $ | 50,868 | $ | 12,508 | $ | 39,771 | $ | 156,189 | ||||||||||||
Securities loaned | Securities loaned | 12,675 | — | 150 | 9,117 | 21,942 | Securities loaned | 15,249 | — | 1,398 | 8,626 | 25,273 | ||||||||||||||||||||||
Total included in the offsetting disclosure | Total included in the offsetting disclosure | $ | 61,136 | $ | 53,458 | $ | 12,679 | $ | 52,607 | $ | 179,880 | Total included in the offsetting disclosure | $ | 68,291 | $ | 50,868 | $ | 13,906 | $ | 48,397 | $ | 181,462 | ||||||||||||
Trading liabilities— Obligation to return securities received as collateral | Trading liabilities— Obligation to return securities received as collateral | 22,528 | — | — | — | 22,528 | Trading liabilities— Obligation to return securities received as collateral | 22,373 | — | — | — | 22,373 | ||||||||||||||||||||||
Total | Total | $ | 83,664 | $ | 53,458 | $ | 12,679 | $ | 52,607 | $ | 202,408 | Total | $ | 90,664 | $ | 50,868 | $ | 13,906 | $ | 48,397 | $ | 203,835 |
53 | September 2022 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Overnight and Open | Less than 30 Days | 30-90 Days | Over 90 Days | Total | $ in millions | Overnight and Open | Less than 30 Days | 30-90 Days | Over 90 Days | Total | ||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | $ | 84,349 | $ | 60,853 | $ | 26,221 | $ | 27,070 | $ | 198,493 | Securities sold under agreements to repurchase | $ | 29,271 | $ | 53,987 | $ | 17,099 | $ | 39,318 | $ | 139,675 | ||||||||||||
Securities loaned | Securities loaned | 15,267 | 247 | — | 4,747 | 20,261 | Securities loaned | 11,480 | 364 | 650 | 9,487 | 21,981 | ||||||||||||||||||||||
Total included in the offsetting disclosure | Total included in the offsetting disclosure | $ | 99,616 | $ | 61,100 | $ | 26,221 | $ | 31,817 | $ | 218,754 | Total included in the offsetting disclosure | $ | 40,751 | $ | 54,351 | $ | 17,749 | $ | 48,805 | $ | 161,656 | ||||||||||||
Trading liabilities— Obligation to return securities received as collateral | Trading liabilities— Obligation to return securities received as collateral | 16,389 | — | — | — | 16,389 | Trading liabilities— Obligation to return securities received as collateral | 30,104 | — | — | — | 30,104 | ||||||||||||||||||||||
Total | Total | $ | 116,005 | $ | 61,100 | $ | 26,221 | $ | 31,817 | $ | 235,143 | Total | $ | 70,855 | $ | 54,351 | $ | 17,749 | $ | 48,805 | $ | 191,760 |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | ||||||||||||||
U.S. Treasury and agency securities | U.S. Treasury and agency securities | $ | 40,104 | $ | 94,662 | U.S. Treasury and agency securities | $ | 51,436 | $ | 30,790 | ||||||
Other sovereign government obligations | Other sovereign government obligations | 83,996 | 71,140 | Other sovereign government obligations | 74,401 | 73,063 | ||||||||||
Corporate equities | Corporate equities | 24,508 | 24,692 | Corporate equities | 19,128 | 25,881 | ||||||||||
Other | Other | 9,330 | 7,999 | Other | 11,224 | 9,941 | ||||||||||
Total | Total | $ | 157,938 | $ | 198,493 | Total | $ | 156,189 | $ | 139,675 | ||||||
Securities loaned | Securities loaned | Securities loaned | ||||||||||||||
Other sovereign government obligations | Other sovereign government obligations | $ | 1,359 | $ | 3,430 | Other sovereign government obligations | $ | 1,045 | $ | 748 | ||||||
Corporate equities | Corporate equities | 20,195 | 16,536 | Corporate equities | 23,688 | 20,656 | ||||||||||
Other | Other | 388 | 295 | Other | 540 | 577 | ||||||||||
Total | Total | $ | 21,942 | $ | 20,261 | Total | $ | 25,273 | $ | 21,981 | ||||||
Total included in the offsetting disclosure | Total included in the offsetting disclosure | $ | 179,880 | $ | 218,754 | Total included in the offsetting disclosure | $ | 181,462 | $ | 161,656 | ||||||
Trading liabilities—Obligation to return securities received as collateral | Trading liabilities—Obligation to return securities received as collateral | Trading liabilities—Obligation to return securities received as collateral | ||||||||||||||
Corporate equities | Corporate equities | $ | 22,487 | $ | 16,365 | Corporate equities | $ | 22,355 | $ | 30,048 | ||||||
Other | Other | 41 | 24 | Other | 18 | 56 | ||||||||||
Total | Total | $ | 22,528 | $ | 16,389 | Total | $ | 22,373 | $ | 30,104 | ||||||
Total | Total | $ | 202,408 | $ | 235,143 | Total | $ | 203,835 | $ | 191,760 |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||||||||
Trading assets | Trading assets | $ | 33,926 | $ | 30,954 | Trading assets | $ | 32,461 | $ | 32,458 |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Collateral received with right to sell or repledge | Collateral received with right to sell or repledge | $ | 706,446 | $ | 724,818 | Collateral received with right to sell or repledge | $ | 630,129 | $ | 672,104 | ||||||
Collateral that was sold or repledged1 | Collateral that was sold or repledged1 | 535,697 | 523,648 | Collateral that was sold or repledged1 | 489,010 | 510,000 |
(Unaudited) |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Segregated securities1 | Segregated securities1 | $ | 20,552 | $ | 34,106 | Segregated securities1 | $ | 36,579 | $ | 20,092 |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Margin and other lending | Margin and other lending | $ | 69,608 | $ | 74,714 | Margin and other lending | $ | 43,415 | $ | 71,532 |
September 2022 Form 10-Q | 54 |
Notes to Consolidated Financial Statements (Unaudited) |
At September 30, 2021 | At September 30, 2022 | |||||||||||||||||||||
$ in millions | $ in millions | Loans Held for Investment | Loans Held for Sale | Total Loans | $ in millions | HFI Loans | HFS Loans | Total Loans | ||||||||||||||
Corporate | Corporate | $ | 4,774 | $ | 8,998 | $ | 13,772 | Corporate | $ | 6,858 | $ | 7,640 | $ | 14,498 | ||||||||
Secured lending facilities | Secured lending facilities | 27,345 | 3,650 | 30,995 | Secured lending facilities | 34,788 | 3,707 | 38,495 | ||||||||||||||
Commercial real estate | Commercial real estate | 6,915 | 434 | 7,349 | Commercial real estate | 8,191 | 1,750 | 9,941 | ||||||||||||||
Residential real estate | Residential real estate | 41,428 | 8 | 41,436 | Residential real estate | 52,904 | 5 | 52,909 | ||||||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | 80,413 | 78 | 80,491 | Securities-based lending and Other loans | 95,591 | 251 | 95,842 | ||||||||||||||
Total loans | Total loans | 160,875 | 13,168 | 174,043 | Total loans | 198,332 | 13,353 | 211,685 | ||||||||||||||
ACL | ACL | (684) | (684) | ACL | (749) | (749) | ||||||||||||||||
Total loans, net | Total loans, net | $ | 160,191 | $ | 13,168 | $ | 173,359 | Total loans, net | $ | 197,583 | $ | 13,353 | $ | 210,936 | ||||||||
Fixed rate loans, net | $ | 40,590 | ||||||||||||||||||||
Floating or adjustable rate loans, net | 132,769 | |||||||||||||||||||||
Loans to non-U.S. borrowers, net | Loans to non-U.S. borrowers, net | 21,260 | Loans to non-U.S. borrowers, net | $ | 24,624 |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||
$ in millions | $ in millions | Loans Held for Investment | Loans Held for Sale | Total Loans | $ in millions | HFI Loans | HFS Loans | Total Loans | ||||||||||||||
Corporate | Corporate | $ | 6,046 | $ | 8,580 | $ | 14,626 | Corporate | $ | 5,567 | $ | 8,107 | $ | 13,674 | ||||||||
Secured lending facilities | Secured lending facilities | 25,727 | 3,296 | 29,023 | Secured lending facilities | 31,471 | 3,879 | 35,350 | ||||||||||||||
Commercial real estate | Commercial real estate | 7,346 | 822 | 8,168 | Commercial real estate | 7,227 | 1,777 | 9,004 | ||||||||||||||
Residential real estate | Residential real estate | 35,268 | 48 | 35,316 | Residential real estate | 44,251 | 7 | 44,258 | ||||||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | 64,232 | 67 | 64,299 | Securities-based lending and Other loans | 86,440 | 62 | 86,502 | ||||||||||||||
Total loans | Total loans | 138,619 | 12,813 | 151,432 | Total loans | 174,956 | 13,832 | 188,788 | ||||||||||||||
ACL | ACL | (835) | (835) | ACL | (654) | (654) | ||||||||||||||||
Total loans, net | Total loans, net | $ | 137,784 | $ | 12,813 | $ | 150,597 | Total loans, net | $ | 174,302 | $ | 13,832 | $ | 188,134 | ||||||||
Fixed rate loans, net | $ | 32,796 | ||||||||||||||||||||
Floating or adjustable rate loans, net | 117,801 | |||||||||||||||||||||
Loans to non-U.S. borrowers, net | Loans to non-U.S. borrowers, net | 21,081 | Loans to non-U.S. borrowers, net | $ | 24,322 |
At September 30, 2022 | At December 31, 2021 | |||||||||||||
$ in millions | Fixed Rate | Floating or Adjustable Rate | Fixed Rate | Floating or Adjustable Rate | ||||||||||
Corporate | $ | — | $ | 14,498 | $ | — | $ | 13,674 | ||||||
Secured lending facilities | — | 38,495 | — | 35,350 | ||||||||||
Commercial real estate | 205 | 9,735 | 343 | 8,661 | ||||||||||
Residential real estate | 24,105 | 28,805 | 18,966 | 25,292 | ||||||||||
Securities-based lending and Other loans | 24,141 | 71,701 | 22,832 | 63,670 | ||||||||||
Total loans, before ACL | $ | 48,451 | $ | 163,234 | $ | 42,141 | $ | 146,647 |
At September 30, 2022 | At December 31, 2021 | |||||||||||||||||||
Corporate | ||||||||||||||||||||
$ in millions | IG | NIG | Total | IG | NIG | Total | ||||||||||||||
Revolving | $ | 3,111 | $ | 3,119 | $ | 6,230 | $ | 2,356 | $ | 2,328 | $ | 4,684 | ||||||||
2022 | — | 80 | 80 | |||||||||||||||||
2021 | — | 92 | 92 | — | 85 | 85 | ||||||||||||||
2020 | 16 | 25 | 41 | 111 | 26 | 137 | ||||||||||||||
2019 | — | 153 | 153 | — | 176 | 176 | ||||||||||||||
2018 | 146 | — | 146 | 196 | — | 196 | ||||||||||||||
Prior | 115 | 1 | 116 | 229 | 60 | 289 | ||||||||||||||
Total | $ | 3,388 | $ | 3,470 | $ | 6,858 | $ | 2,892 | $ | 2,675 | $ | 5,567 |
At September 30, 2022 | At December 31, 2021 | |||||||||||||||||||
Secured Lending Facilities | ||||||||||||||||||||
$ in millions | IG | NIG | Total | IG | NIG | Total | ||||||||||||||
Revolving | $ | 9,413 | $ | 21,231 | $ | 30,644 | $ | 7,603 | $ | 20,172 | $ | 27,775 | ||||||||
2022 | 590 | 995 | 1,585 | |||||||||||||||||
2021 | 234 | 196 | 430 | 32 | 467 | 499 | ||||||||||||||
2020 | — | 107 | 107 | 35 | 160 | 195 | ||||||||||||||
2019 | 60 | 556 | 616 | 43 | 819 | 862 | ||||||||||||||
2018 | — | 284 | 284 | 297 | 703 | 1,000 | ||||||||||||||
Prior | 217 | 905 | 1,122 | 144 | 996 | 1,140 | ||||||||||||||
Total | $ | 10,514 | $ | 24,274 | $ | 34,788 | $ | 8,154 | $ | 23,317 | $ | 31,471 |
At September 30, 2022 | At December 31, 2021 | |||||||||||||||||||
Commercial Real Estate | ||||||||||||||||||||
$ in millions | IG | NIG | Total | IG | NIG | Total | ||||||||||||||
Revolving | $ | 4 | $ | 154 | $ | 158 | $ | 3 | $ | 149 | $ | 152 | ||||||||
2022 | 503 | 1,806 | 2,309 | |||||||||||||||||
2021 | 283 | 1,492 | 1,775 | 423 | 1,292 | 1,715 | ||||||||||||||
2020 | 92 | 639 | 731 | 91 | 819 | 910 | ||||||||||||||
2019 | 923 | 862 | 1,785 | 976 | 1,266 | 2,242 | ||||||||||||||
2018 | 475 | 299 | 774 | 527 | 416 | 943 | ||||||||||||||
Prior | 86 | 573 | 659 | 189 | 1,076 | 1,265 | ||||||||||||||
Total | $ | 2,366 | $ | 5,825 | $ | 8,191 | $ | 2,209 | $ | 5,018 | $ | 7,227 |
At September 30, 2022 | ||||||||||||||||||||||||||
Residential Real Estate | ||||||||||||||||||||||||||
by FICO Scores | by LTV Ratio | Total | ||||||||||||||||||||||||
$ in millions | ≥ 740 | 680-739 | ≤ 679 | ≤ 80% | > 80% | |||||||||||||||||||||
Revolving | $ | 75 | $ | 27 | $ | 4 | $ | 106 | $ | — | $ | 106 | ||||||||||||||
2022 | 9,741 | 2,109 | 342 | 11,257 | 935 | 12,192 | ||||||||||||||||||||
2021 | 11,749 | 2,529 | 260 | 13,555 | 983 | 14,538 | ||||||||||||||||||||
2020 | 7,396 | 1,523 | 116 | 8,573 | 462 | 9,035 | ||||||||||||||||||||
2019 | 4,268 | 956 | 138 | 5,031 | 331 | 5,362 | ||||||||||||||||||||
2018 | 1,663 | 457 | 51 | 2,001 | 170 | 2,171 | ||||||||||||||||||||
Prior | 7,045 | 2,143 | 312 | 8,737 | 763 | 9,500 | ||||||||||||||||||||
Total | $ | 41,937 | $ | 9,744 | $ | 1,223 | $ | 49,260 | $ | 3,644 | $ | 52,904 |
At December 31, 2021 | ||||||||||||||||||||||||||
Residential Real Estate | ||||||||||||||||||||||||||
by FICO Scores | by LTV Ratio | Total | ||||||||||||||||||||||||
$ in millions | ≥ 740 | 680-739 | ≤ 679 | ≤ 80% | > 80% | |||||||||||||||||||||
Revolving | $ | 65 | $ | 27 | $ | 4 | $ | 96 | $ | — | $ | 96 | ||||||||||||||
2021 | 12,230 | 2,638 | 257 | 14,116 | 1,009 | 15,125 | ||||||||||||||||||||
2020 | 7,941 | 1,648 | 131 | 9,210 | 510 | 9,720 | ||||||||||||||||||||
2019 | 4,690 | 1,072 | 140 | 5,536 | 366 | 5,902 | ||||||||||||||||||||
2018 | 1,865 | 497 | 55 | 2,231 | 186 | 2,417 | ||||||||||||||||||||
2017 | 2,157 | 558 | 65 | 2,588 | 192 | 2,780 | ||||||||||||||||||||
Prior | 5,973 | 1,919 | 319 | 7,485 | 726 | 8,211 | ||||||||||||||||||||
Total | $ | 34,921 | $ | 8,359 | $ | 971 | $ | 41,262 | $ | 2,989 | $ | 44,251 |
55 | September 2022 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
At September 30, 2022 | ||||||||||||||
Securities-based Lending1 | Other2 | |||||||||||||
$ in millions | IG | NIG | Total | |||||||||||
Revolving | $ | 78,639 | $ | 5,695 | $ | 1,375 | $ | 85,709 | ||||||
2022 | 1,409 | 1,379 | 108 | 2,896 | ||||||||||
2021 | 714 | 541 | 144 | 1,399 | ||||||||||
2020 | — | 529 | 548 | 1,077 | ||||||||||
2019 | 18 | 912 | 625 | 1,555 | ||||||||||
2018 | 202 | 301 | 243 | 746 | ||||||||||
Prior | 16 | 1,562 | 631 | 2,209 | ||||||||||
Total | $ | 80,998 | $ | 10,919 | $ | 3,674 | $ | 95,591 |
December 31, 2021 | ||||||||||||||
Securities-based Lending1 | Other2 | |||||||||||||
$ in millions | IG | NIG | Total | |||||||||||
Revolving | $ | 71,485 | $ | 6,170 | $ | 858 | $ | 78,513 | ||||||
2021 | 807 | 708 | 103 | 1,618 | ||||||||||
2020 | — | 651 | 626 | 1,277 | ||||||||||
2019 | 19 | 1,079 | 633 | 1,731 | ||||||||||
2018 | 232 | 273 | 375 | 880 | ||||||||||
2017 | — | 531 | 217 | 748 | ||||||||||
Prior | 16 | 1,294 | 363 | 1,673 | ||||||||||
Total | $ | 72,559 | $ | 10,706 | $ | 3,175 | $ | 86,440 |
At September 30, 2021 | At December 31, 2020 | |||||||||||||||||||
Corporate | ||||||||||||||||||||
$ in millions | IG | NIG | Total | IG | NIG | Total | ||||||||||||||
Revolving | $ | 1,529 | $ | 2,302 | $ | 3,831 | $ | 1,138 | $ | 3,231 | $ | 4,369 | ||||||||
2021 | — | 71 | 71 | |||||||||||||||||
2020 | 179 | 26 | 205 | 585 | 80 | 665 | ||||||||||||||
2019 | — | 181 | 181 | 204 | 202 | 406 | ||||||||||||||
2018 | 195 | — | 195 | 195 | — | 195 | ||||||||||||||
2017 | — | 60 | 60 | — | 64 | 64 | ||||||||||||||
Prior | 231 | — | 231 | 247 | 100 | 347 | ||||||||||||||
Total | $ | 2,134 | $ | 2,640 | $ | 4,774 | $ | 2,369 | $ | 3,677 | $ | 6,046 |
$ in millions | At September 30, 2022 | At December 31, 2021 | ||||||
Corporate | $ | 44 | $ | — | ||||
Residential real estate | 141 | 209 | ||||||
Total | $ | 185 | $ | 209 |
$ in millions | At September 30, 2022 | At December 31, 2021 | ||||||
Corporate | $ | 60 | $ | 34 | ||||
Secured lending facilities | 99 | 375 | ||||||
Commercial real estate | 130 | 195 | ||||||
Residential real estate | 120 | 138 | ||||||
Securities-based lending and Other loans | 4 | 151 | ||||||
Total1 | $ | 413 | $ | 893 | ||||
Nonaccrual loans without an ACL | $ | 108 | $ | 356 |
$ in millions | At September 30, 2022 | At December 31, 2021 | ||||||
Loans, before ACL | $ | 27 | $ | 49 | ||||
Allowance for credit losses | — | 8 |
$ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | ||||||||||||||
December 31, 2021 | $ | 165 | $ | 163 | $ | 206 | $ | 60 | $ | 60 | $ | 654 | ||||||||
Gross charge-offs | — | (3) | (7) | — | (21) | (31) | ||||||||||||||
Recoveries | 6 | — | — | 1 | — | 7 | ||||||||||||||
Net (charge-offs) recoveries | 6 | (3) | (7) | 1 | (21) | (24) | ||||||||||||||
Provision (release) | 46 | (2) | 35 | 26 | 32 | 137 | ||||||||||||||
Other | (6) | (2) | (10) | — | — | (18) | ||||||||||||||
September 30, 2022 | $ | 211 | $ | 156 | $ | 224 | $ | 87 | $ | 71 | $ | 749 | ||||||||
Percent of loans to total loans1 | 3 | % | 18 | % | 4 | % | 27 | % | 48 | % | 100 | % |
$ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | ||||||||||||||
December 31, 2020 | $ | 309 | $ | 198 | $ | 211 | $ | 59 | $ | 58 | $ | 835 | ||||||||
Gross charge-offs | (19) | (67) | (21) | — | — | (107) | ||||||||||||||
Provision (release) | (91) | 47 | 4 | (2) | 5 | (37) | ||||||||||||||
Other | (2) | (3) | (1) | 1 | (2) | (7) | ||||||||||||||
September 30, 2021 | $ | 197 | $ | 175 | $ | 193 | $ | 58 | $ | 61 | $ | 684 | ||||||||
Percent of loans to total loans1 | 3 | % | 17 | % | 4 | % | 26 | % | 50 | % | 100 | % |
$ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | ||||||||||||||
December 31, 2021 | $ | 356 | $ | 41 | $ | 20 | $ | 1 | $ | 26 | $ | 444 | ||||||||
Provision (release) | 64 | 7 | (6) | 1 | (10) | 56 | ||||||||||||||
Other | (12) | (1) | — | — | — | (13) | ||||||||||||||
September 30, 2022 | $ | 408 | $ | 47 | $ | 14 | $ | 2 | $ | 16 | $ | 487 |
$ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | ||||||||||||||
December 31, 2020 | $ | 323 | $ | 38 | $ | 11 | $ | 1 | $ | 23 | $ | 396 | ||||||||
Provision (release) | 39 | 2 | — | — | (5) | 36 | ||||||||||||||
Other | (3) | 1 | (1) | — | — | (3) | ||||||||||||||
September 30, 2021 | $ | 359 | $ | 41 | $ | 10 | $ | 1 | $ | 18 | $ | 429 |
September | 56 |
Notes to Consolidated Financial Statements (Unaudited) |
At September 30, 2021 | At December 31, 2020 | |||||||||||||||||||
Secured lending facilities | ||||||||||||||||||||
$ in millions | IG | NIG | Total | IG | NIG | Total | ||||||||||||||
Revolving | $ | 7,000 | $ | 16,034 | $ | 23,034 | $ | 4,711 | $ | 14,510 | $ | 19,221 | ||||||||
2021 | 33 | 354 | 387 | |||||||||||||||||
2020 | 84 | 175 | 259 | 162 | 253 | 415 | ||||||||||||||
2019 | 173 | 1,065 | 1,238 | 260 | 1,904 | 2,164 | ||||||||||||||
2018 | 310 | 786 | 1,096 | 614 | 1,432 | 2,046 | ||||||||||||||
2017 | 144 | 306 | 450 | 245 | 581 | 826 | ||||||||||||||
Prior | — | 881 | 881 | — | 1,055 | 1,055 | ||||||||||||||
Total | $ | 7,744 | $ | 19,601 | $ | 27,345 | $ | 5,992 | $ | 19,735 | $ | 25,727 |
At September 30, 2021 | At December 31, 2020 | |||||||||||||||||||
Commercial real estate | ||||||||||||||||||||
$ in millions | IG | NIG | Total | IG | NIG | Total | ||||||||||||||
2021 | 260 | 537 | 797 | |||||||||||||||||
2020 | 160 | 813 | 973 | 95 | 943 | 1,038 | ||||||||||||||
2019 | 1,148 | 1,400 | 2,548 | 1,074 | 1,848 | 2,922 | ||||||||||||||
2018 | 533 | 415 | 948 | 746 | 774 | 1,520 | ||||||||||||||
2017 | 334 | 339 | 673 | 412 | 387 | 799 | ||||||||||||||
Prior | 100 | 876 | 976 | 100 | 967 | 1,067 | ||||||||||||||
Total | $ | 2,535 | $ | 4,380 | $ | 6,915 | $ | 2,427 | $ | 4,919 | $ | 7,346 |
At September 30, 2021 | ||||||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||
by FICO Scores | by LTV Ratio | Total | ||||||||||||||||||||||||
$ in millions | ≥ 740 | 680-739 | ≤ 679 | ≤ 80% | > 80% | |||||||||||||||||||||
Revolving | $ | 66 | $ | 26 | $ | 4 | $ | 96 | $ | — | $ | 96 | ||||||||||||||
2021 | 8,749 | 1,863 | 164 | 10,099 | 677 | 10,776 | ||||||||||||||||||||
2020 | 8,245 | 1,711 | 133 | 9,557 | 532 | 10,089 | ||||||||||||||||||||
2019 | 4,941 | 1,130 | 149 | 5,836 | 384 | 6,220 | ||||||||||||||||||||
2018 | 1,977 | 519 | 65 | 2,369 | 192 | 2,561 | ||||||||||||||||||||
2017 | 2,282 | 584 | 76 | 2,736 | 206 | 2,942 | ||||||||||||||||||||
Prior | 6,350 | 2,060 | 334 | 7,967 | 777 | 8,744 | ||||||||||||||||||||
Total | $ | 32,610 | $ | 7,893 | $ | 925 | $ | 38,660 | $ | 2,768 | $ | 41,428 |
At December 31, 2020 | ||||||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||
by FICO Scores | by LTV Ratio | Total | ||||||||||||||||||||||||
$ in millions | ≥ 740 | 680-739 | ≤ 679 | ≤ 80% | > 80% | |||||||||||||||||||||
Revolving | $ | 85 | $ | 32 | $ | 5 | $ | 122 | $ | — | $ | 122 | ||||||||||||||
2020 | 8,948 | 1,824 | 149 | 10,338 | 583 | 10,921 | ||||||||||||||||||||
2019 | 5,592 | 1,265 | 168 | 6,584 | 441 | 7,025 | ||||||||||||||||||||
2018 | 2,320 | 604 | 75 | 2,756 | 243 | 2,999 | ||||||||||||||||||||
2017 | 2,721 | 690 | 89 | 3,251 | 249 | 3,500 | ||||||||||||||||||||
2016 | 3,324 | 884 | 118 | 4,035 | 291 | 4,326 | ||||||||||||||||||||
Prior | 4,465 | 1,626 | 284 | 5,684 | 691 | 6,375 | ||||||||||||||||||||
Total | $ | 27,455 | $ | 6,925 | $ | 888 | $ | 32,770 | $ | 2,498 | $ | 35,268 |
At September 30, 2021 | ||||||||||||||
Securities-based lending1 | Other2 | |||||||||||||
$ in millions | Investment Grade | Non-Investment Grade | Total | |||||||||||
Revolving | $ | 67,009 | $ | 5,783 | $ | 670 | $ | 73,462 | ||||||
2021 | 31 | 346 | 64 | 441 | ||||||||||
2020 | — | 729 | 590 | 1,319 | ||||||||||
2019 | 19 | 1,105 | 627 | 1,751 | ||||||||||
2018 | 232 | 288 | 384 | 904 | ||||||||||
2017 | — | 521 | 262 | 783 | ||||||||||
Prior | 16 | 1,395 | 342 | 1,753 | ||||||||||
Total | $ | 67,307 | $ | 10,167 | $ | 2,939 | $ | 80,413 |
December 31, 2020 | ||||||||||||||
Securities-based lending1 | Other2 | |||||||||||||
$ in millions | Investment Grade | Non-Investment Grade | Total | |||||||||||
Revolving | $ | 51,667 | $ | 4,816 | $ | 555 | $ | 57,038 | ||||||
2020 | — | 1,073 | 590 | 1,663 | ||||||||||
2019 | 18 | 1,156 | 623 | 1,797 | ||||||||||
2018 | 232 | 407 | 403 | 1,042 | ||||||||||
2017 | — | 654 | 122 | 776 | ||||||||||
2016 | — | 566 | 111 | 677 | ||||||||||
Prior | 16 | 1,066 | 157 | 1,239 | ||||||||||
Total | $ | 51,933 | $ | 9,738 | $ | 2,561 | $ | 64,232 |
$ in millions | At September 30, 2021 | At December 31, 2020 | ||||||
Corporate | $ | 4 | $ | — | ||||
Residential real estate | 235 | 332 | ||||||
Securities-based lending and Other loans | — | 31 | ||||||
Total | $ | 239 | $ | 363 |
$ in millions | At September 30, 2021 | At December 31, 2020 | ||||||
Corporate | $ | 82 | $ | 164 | ||||
Secured lending facilities | 388 | — | ||||||
Commercial real estate | 68 | 152 | ||||||
Residential real estate | 127 | 97 | ||||||
Securities-based lending and Other loans | 161 | 178 | ||||||
Total1 | $ | 826 | $ | 591 | ||||
Nonaccrual loans without an ACL | $ | 125 | $ | 90 |
$ in millions | At September 30, 2021 | At December 31, 2020 | ||||||
Loans, before ACL | $ | 65 | $ | 167 | ||||
Lending commitments | — | 27 | ||||||
ACL on Loans and Lending commitments | 9 | 36 |
Three Months Ended September 30, | ||||||||
$ in millions | 2022 | 2021 | ||||||
Loans | $ | 6 | $ | 5 | ||||
Lending commitments | 29 | 19 |
(Unaudited) |
$ in millions | Corporate | Secured lending facilities | CRE | Residential real estate | SBL and Other | Total | ||||||||||||||
December 31, 2020 | $ | 309 | $ | 198 | $ | 211 | $ | 59 | $ | 58 | $ | 835 | ||||||||
Gross charge-offs | (19) | (67) | (21) | — | — | (107) | ||||||||||||||
Provision for credit losses | (91) | 47 | 4 | (2) | 5 | (37) | ||||||||||||||
Other | (2) | (3) | (1) | 1 | (2) | (7) | ||||||||||||||
September 30, 2021 | $ | 197 | $ | 175 | $ | 193 | $ | 58 | $ | 61 | $ | 684 |
$ in millions | Corporate | Secured lending facilities | CRE | Residential real estate | SBL and Other | Total | ||||||||||||||
December 31, 2019 | $ | 115 | $ | 101 | $ | 75 | $ | 25 | $ | 33 | $ | 349 | ||||||||
Effect of CECL adoption | (2) | (42) | 34 | 21 | (2) | 9 | ||||||||||||||
Gross charge-offs | (33) | — | (26) | — | — | (59) | ||||||||||||||
Recoveries | 3 | — | — | — | 2 | 5 | ||||||||||||||
Net recoveries (charge-offs) | (30) | — | (26) | — | 2 | (54) | ||||||||||||||
Provision for credit losses | 281 | 131 | 173 | 12 | 4 | 601 | ||||||||||||||
Other | 3 | 1 | (34) | — | 38 | 8 | ||||||||||||||
September 30, 2020 | $ | 367 | $ | 191 | $ | 222 | $ | 58 | $ | 75 | $ | 913 |
$ in millions | Corporate | Secured lending facilities | CRE | Residential real estate | SBL and Other | Total | ||||||||||||||
December 31, 2020 | $ | 323 | $ | 38 | $ | 11 | $ | 1 | $ | 23 | $ | 396 | ||||||||
Provision for credit losses | 39 | 2 | — | — | (5) | 36 | ||||||||||||||
Other | (3) | 1 | (1) | — | — | (3) | ||||||||||||||
September 30, 2021 | $ | 359 | $ | 41 | $ | 10 | $ | 1 | $ | 18 | $ | 429 |
$ in millions | Corporate | Secured lending facilities | CRE | Residential real estate | SBL and Other | Total | ||||||||||||||
December 31, 2019 | $ | 201 | $ | 27 | $ | 7 | $ | — | $ | 6 | $ | 241 | ||||||||
Effect of CECL adoption | (41) | (11) | 1 | 2 | (1) | (50) | ||||||||||||||
Provision for credit losses | 119 | 24 | 7 | (1) | 7 | 156 | ||||||||||||||
Other | — | — | (4) | — | 4 | — | ||||||||||||||
September 30, 2020 | $ | 279 | $ | 40 | $ | 11 | $ | 1 | $ | 16 | $ | 347 |
Three Months Ended September 30, | ||||||||
$ in millions | 2021 | 2020 | ||||||
Loans | $ | 5 | $ | 63 | ||||
Lending commitments | 19 | 48 |
At September 30, 2022 | At December 31, 2021 | |||||||
ACL to total loans1 | 0.4 | % | 0.4 | % | ||||
Nonaccrual loans to total loans2 | 0.2 | % | 0.5 | % | ||||
ACL to nonaccrual loans3 | 181.4 | % | 73.2 | % |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Currently employed by the Firm1 | Currently employed by the Firm1 | $ | 3,486 | $ | 3,100 | Currently employed by the Firm1 | $ | 3,967 | $ | 3,613 | ||||||
No longer employed by the Firm2 | No longer employed by the Firm2 | 128 | $ | 140 | No longer employed by the Firm2 | 98 | 113 | |||||||||
Employee loans | Employee loans | $ | 3,614 | $ | 3,240 | Employee loans | $ | 4,065 | $ | 3,726 | ||||||
ACL | ACL | (163) | (165) | ACL | (141) | (153) | ||||||||||
Employee loans, net of ACL | Employee loans, net of ACL | $ | 3,451 | $ | 3,075 | Employee loans, net of ACL | $ | 3,924 | $ | 3,573 | ||||||
Remaining repayment term, weighted average in years | Remaining repayment term, weighted average in years | 5.6 | 5.3 | Remaining repayment term, weighted average in years | 5.8 | 5.7 |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Investments | Investments | $ | 2,298 | $ | 2,410 | Investments | $ | 1,881 | $ | 2,214 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Income (loss) | Income (loss) | $ | 24 | $ | 10 | $ | 51 | $ | (24) | Income (loss) | $ | 21 | $ | 24 | $ | 44 | $ | 51 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Income (loss) from investment in MUMSS | $ | 17 | $ | 29 | $ | 35 | $ | 113 |
$ in millions | At September 30, 2022 | At December 31, 2021 | ||||||
Savings and demand deposits | $ | 317,129 | $ | 332,747 | ||||
Time deposits | 20,994 | 14,827 | ||||||
Total | $ | 338,123 | $ | 347,574 | ||||
Deposits subject to FDIC insurance | $ | 239,194 | $ | 230,894 | ||||
Deposits not subject to FDIC insurance | $ | 98,929 | $ | 116,680 | ||||
$ in millions | At September 30, 2022 | ||||
2022 | $ | 1,948 | |||
2023 | 9,279 | ||||
2024 | 5,640 | ||||
2025 | 2,093 | ||||
2026 | 623 | ||||
Thereafter | 1,411 | ||||
Total | $ | 20,994 |
57 | September |
Notes to Consolidated Financial Statements (Unaudited) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Income (loss) from investment in MUMSS | $ | 29 | $ | 15 | $ | 113 | $ | 46 |
$ in millions | At September 30, 2021 | At December 31, 2020 | ||||||
Savings and demand deposits | $ | 310,845 | $ | 279,221 | ||||
Time deposits | 18,196 | 31,561 | ||||||
Total | $ | 329,041 | $ | 310,782 | ||||
Deposits subject to FDIC insurance | $ | 226,605 | $ | 234,211 | ||||
Time deposits that equal or exceed the FDIC insurance limit | $ | — | $ | 16 |
$ in millions | At September 30, 2021 | ||||
2021 | $ | 3,544 | |||
2022 | 6,124 | ||||
2023 | 4,243 | ||||
2024 | 2,813 | ||||
2025 | 793 | ||||
Thereafter | 679 | ||||
Total | $ | 18,196 |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Original maturities of one year or less | Original maturities of one year or less | $ | 4,825 | $ | 3,691 | Original maturities of one year or less | $ | 4,062 | $ | 5,764 | ||||||
Original maturities greater than one year | Original maturities greater than one year | Original maturities greater than one year | ||||||||||||||
Senior | Senior | $ | 211,226 | $ | 202,305 | Senior | $ | 202,251 | $ | 213,776 | ||||||
Subordinated | Subordinated | 13,711 | 11,083 | Subordinated | 14,110 | 13,587 | ||||||||||
Total | Total | $ | 224,937 | $ | 213,388 | Total | $ | 216,361 | $ | 227,363 | ||||||
Total borrowings | Total borrowings | $ | 229,762 | $ | 217,079 | Total borrowings | $ | 220,423 | $ | 233,127 | ||||||
Weighted average stated maturity, in years1 | Weighted average stated maturity, in years1 | 7.7 | 7.3 | Weighted average stated maturity, in years1 | 6.7 | 7.7 |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Original maturities: | Original maturities: | Original maturities: | ||||||||||||||
One year or less | One year or less | $ | 4,947 | $ | 10,453 | One year or less | $ | 295 | $ | 4,573 | ||||||
Greater than one year | Greater than one year | 5,325 | 5,410 | Greater than one year | 7,406 | 5,468 | ||||||||||
Total | Total | $ | 10,272 | $ | 15,863 | Total | $ | 7,701 | $ | 10,041 | ||||||
Transfers of assets accounted for as secured financings | Transfers of assets accounted for as secured financings | $ | 1,255 | $ | 1,529 | Transfers of assets accounted for as secured financings | $ | 931 | $ | 1,556 |
Years to Maturity at September 30, 2021 | Years to Maturity at September 30, 2022 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | $ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||||||||||||
Lending: | Lending: | Lending: | ||||||||||||||||||||||||||||||||
Corporate | Corporate | $ | 16,994 | $ | 36,794 | $ | 45,711 | $ | 7,396 | $ | 106,895 | Corporate | $ | 11,654 | $ | 29,955 | $ | 54,877 | $ | 6,105 | $ | 102,591 | ||||||||||||
Secured lending facilities | Secured lending facilities | 4,799 | 6,061 | 1,717 | 630 | 13,207 | Secured lending facilities | 6,297 | 6,007 | 1,814 | 775 | 14,893 | ||||||||||||||||||||||
Commercial and Residential real estate | Commercial and Residential real estate | 303 | 242 | 133 | 270 | 948 | Commercial and Residential real estate | 103 | 339 | 18 | 296 | 756 | ||||||||||||||||||||||
Securities-based lending and Other | Securities-based lending and Other | 12,028 | 3,132 | 470 | 436 | 16,066 | Securities-based lending and Other | 12,415 | 5,012 | 548 | 390 | 18,365 | ||||||||||||||||||||||
Forward-starting secured financing receivables | Forward-starting secured financing receivables | 64,603 | — | — | — | 64,603 | Forward-starting secured financing receivables | 62,091 | — | — | — | 62,091 | ||||||||||||||||||||||
Central counterparty | Central counterparty | 300 | — | — | 11,807 | 12,107 | Central counterparty | 300 | — | — | 4,909 | 5,209 | ||||||||||||||||||||||
Underwriting | Underwriting | 428 | 14 | — | — | 442 | Underwriting | 2,350 | — | — | — | 2,350 | ||||||||||||||||||||||
Investment activities | Investment activities | 1,119 | 240 | 60 | 409 | 1,828 | Investment activities | 1,479 | 169 | 65 | 351 | 2,064 | ||||||||||||||||||||||
Letters of credit and other financial guarantees | Letters of credit and other financial guarantees | 26 | — | — | 3 | 29 | Letters of credit and other financial guarantees | 168 | — | — | 2 | 170 | ||||||||||||||||||||||
Total | Total | $ | 100,600 | $ | 46,483 | $ | 48,091 | $ | 20,951 | $ | 216,125 | Total | $ | 96,857 | $ | 41,482 | $ | 57,322 | $ | 12,828 | $ | 208,489 | ||||||||||||
Lending commitments participated to third parties | Lending commitments participated to third parties | $ | 8,380 | Lending commitments participated to third parties | $ | 7,877 | ||||||||||||||||||||||||||||
Forward-starting secured financing receivables settled within three business days | Forward-starting secured financing receivables settled within three business days | $ | 55,387 | Forward-starting secured financing receivables settled within three business days | $ | 45,666 |
At September 30, 2022 | ||||||||||||||||||||
Maximum Potential Payout/Notional of Obligations by Years to Maturity | Carrying Amount Asset (Liability) | |||||||||||||||||||
$ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | ||||||||||||||||
Non-credit derivatives1 | $ | 1,168,376 | $ | 917,531 | $ | 351,872 | $ | 759,598 | $ | (107,603) | ||||||||||
Standby letters of credit and other financial guarantees issued2 | 1,641 | 826 | 1,310 | 2,672 | 6 | |||||||||||||||
Market value guarantees | 5 | 2 | — | — | — | |||||||||||||||
Liquidity facilities | 3,712 | — | — | — | (6) | |||||||||||||||
Whole loan sales guarantees | — | 9 | 78 | 23,079 | — | |||||||||||||||
Securitization representations and warranties3 | — | — | — | 80,236 | (3) | |||||||||||||||
General partner guarantees | 361 | 10 | 32 | 157 | (88) | |||||||||||||||
Client clearing guarantees | 159 | — | — | — | — |
September | 58 |
Notes to Consolidated Financial Statements (Unaudited) |
At September 30, 2021 | |||||||||||||||||||||||
Maximum Potential Payout/Notional of Obligations by Years to Maturity | Carrying Amount Asset (Liability) | ||||||||||||||||||||||
$ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | |||||||||||||||||||
Non-credit derivatives1 | $ | 1,231,656 | $ | 1,036,489 | $ | 396,233 | $ | 933,946 | $ | (48,593) | |||||||||||||
Standby letters of credit and other financial guarantees issued2 | 1,466 | 1,053 | 770 | 3,573 | 88 | ||||||||||||||||||
Market value guarantees | 75 | 20 | — | — | — | ||||||||||||||||||
Liquidity facilities | 4,022 | — | — | — | 5 | ||||||||||||||||||
Whole loan sales guarantees | — | — | 69 | 23,112 | — | ||||||||||||||||||
Securitization representations and warranties3 | — | — | — | 74,446 | (42) | ||||||||||||||||||
General partner guarantees | 327 | 12 | 32 | 114 | (65) | ||||||||||||||||||
Client clearing guarantees | 54 | — | — | — | — |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Legal expenses | $ | 41 | $ | 50 | $ | 387 | $ | 99 |
(Unaudited) |
59 | September 2022 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
(Unaudited) |
At September 30, 2021 | At December 31, 2020 | At September 30, 2022 | At December 31, 2021 | |||||||||||||||||||||||||
$ in millions | $ in millions | VIE Assets | VIE Liabilities | VIE Assets | VIE Liabilities | $ in millions | VIE Assets | VIE Liabilities | VIE Assets | VIE Liabilities | ||||||||||||||||||
MABS2 | $ | 774 | $ | 234 | $ | 590 | $ | 17 | ||||||||||||||||||||
Investment vehicles3 | 696 | 216 | 776 | 355 | ||||||||||||||||||||||||
MABS1 | MABS1 | $ | 1,006 | $ | 471 | $ | 1,177 | $ | 409 | |||||||||||||||||||
Investment vehicles2 | Investment vehicles2 | 885 | 508 | 717 | 294 | |||||||||||||||||||||||
Operating entities | Operating entities | 497 | 38 | 504 | 39 | Operating entities | 502 | 33 | 508 | 39 | ||||||||||||||||||
Other | Other | 452 | 220 | 248 | 3 | Other | 844 | 584 | 510 | 286 | ||||||||||||||||||
Total | Total | $ | 2,419 | $ | 708 | $ | 2,118 | $ | 414 | Total | $ | 3,237 | $ | 1,596 | $ | 2,912 | $ | 1,028 |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Assets | Assets | Assets | ||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 270 | $ | 269 | Cash and cash equivalents | $ | 368 | $ | 341 | ||||||
Trading assets at fair value | Trading assets at fair value | 1,550 | 1,445 | Trading assets at fair value | 2,074 | 1,965 | ||||||||||
Investment securities | Investment securities | 33 | — | Investment securities | 244 | 37 | ||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | 200 | — | Securities purchased under agreements to resell | 200 | 200 | ||||||||||
Customer and other receivables | Customer and other receivables | 18 | 23 | Customer and other receivables | 30 | 31 | ||||||||||
Intangible assets | Intangible assets | 89 | 98 | Intangible assets | 76 | 85 | ||||||||||
Other assets | Other assets | 259 | 283 | Other assets | 245 | 253 | ||||||||||
Total | Total | $ | 2,419 | $ | 2,118 | Total | $ | 3,237 | $ | 2,912 | ||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||
Other secured financings | Other secured financings | $ | 505 | $ | 366 | Other secured financings | $ | 1,420 | $ | 767 | ||||||
Other liabilities and accrued expenses | Other liabilities and accrued expenses | 203 | 48 | Other liabilities and accrued expenses | 176 | 261 | ||||||||||
Total | Total | $ | 708 | $ | 414 | Total | $ | 1,596 | $ | 1,028 | ||||||
Noncontrolling interests | Noncontrolling interests | $ | 130 | $ | 196 | Noncontrolling interests | $ | 103 | $ | 115 |
At September 30, 2021 | At September 30, 2022 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | MABS1 | CDO | MTOB | OSF | Other2 | $ in millions | MABS1 | CDO | MTOB | OSF | Other2 | ||||||||||||||||||||||
VIE assets (UPB) | VIE assets (UPB) | $ | 157,608 | $ | 1,968 | $ | 6,048 | $ | 2,014 | $ | 53,835 | VIE assets (UPB) | $ | 125,670 | $ | 170 | $ | 5,448 | $ | 2,302 | $ | 49,714 | ||||||||||||
Maximum exposure to loss3 | Maximum exposure to loss3 | Maximum exposure to loss3 | ||||||||||||||||||||||||||||||||
Debt and equity interests | Debt and equity interests | $ | 19,539 | $ | 169 | $ | — | $ | 1,239 | $ | 10,497 | Debt and equity interests | $ | 12,946 | $ | 100 | $ | — | $ | 1,592 | $ | 11,423 | ||||||||||||
Derivative and other contracts | Derivative and other contracts | — | — | 4,022 | — | 6,345 | Derivative and other contracts | — | — | 3,712 | — | 4,637 | ||||||||||||||||||||||
Commitments, guarantees and other | Commitments, guarantees and other | 530 | — | — | — | 1,119 | Commitments, guarantees and other | 499 | — | — | — | 754 | ||||||||||||||||||||||
Total | Total | $ | 20,069 | $ | 169 | $ | 4,022 | $ | 1,239 | $ | 17,961 | Total | $ | 13,445 | $ | 100 | $ | 3,712 | $ | 1,592 | $ | 16,814 | ||||||||||||
Carrying value of variable interests—Assets | Carrying value of variable interests—Assets | Carrying value of variable interests—Assets | ||||||||||||||||||||||||||||||||
Debt and equity interests | Debt and equity interests | $ | 19,539 | $ | 169 | $ | — | $ | 1,239 | $ | 10,497 | Debt and equity interests | $ | 12,946 | $ | 100 | $ | — | $ | 1,592 | $ | 11,423 | ||||||||||||
Derivative and other contracts | Derivative and other contracts | — | — | 6 | — | 2,307 | Derivative and other contracts | — | — | 5 | — | 1,794 | ||||||||||||||||||||||
Total | Total | $ | 19,539 | $ | 169 | $ | 6 | $ | 1,239 | $ | 12,804 | Total | $ | 12,946 | $ | 100 | $ | 5 | $ | 1,592 | $ | 13,217 | ||||||||||||
Additional VIE assets owned4 | Additional VIE assets owned4 | $ | 15,975 | Additional VIE assets owned4 | $ | 13,500 | ||||||||||||||||||||||||||||
Carrying value of variable interests—Liabilities | Carrying value of variable interests—Liabilities | Carrying value of variable interests—Liabilities | ||||||||||||||||||||||||||||||||
Derivative and other contracts | Derivative and other contracts | $ | — | $ | — | $ | — | $ | — | $ | 224 | Derivative and other contracts | $ | — | $ | — | $ | 11 | $ | — | $ | 448 |
At December 31, 2020 | |||||||||||||||||
$ in millions | MABS1 | CDO | MTOB | OSF | Other2 | ||||||||||||
VIE assets (UPB) | $ | 184,153 | $ | 3,527 | $ | 6,524 | $ | 2,161 | $ | 48,241 | |||||||
Maximum exposure to loss3 | |||||||||||||||||
Debt and equity interests | $ | 26,247 | $ | 257 | $ | — | $ | 1,187 | $ | 11,008 | |||||||
Derivative and other contracts | — | — | 4,425 | — | 5,639 | ||||||||||||
Commitments, guarantees and other | 929 | — | — | — | 749 | ||||||||||||
Total | $ | 27,176 | $ | 257 | $ | 4,425 | $ | 1,187 | $ | 17,396 | |||||||
Carrying value of variable interests–Assets | |||||||||||||||||
Debt and equity interests | $ | 26,247 | $ | 257 | $ | — | $ | 1,187 | $ | 11,008 | |||||||
Derivative and other contracts | — | — | 5 | — | 851 | ||||||||||||
Total | $ | 26,247 | $ | 257 | $ | 5 | $ | 1,187 | $ | 11,859 | |||||||
Additional VIE assets owned4 | $ | 20,019 | |||||||||||||||
Carrying value of variable interests—Liabilities | |||||||||||||||||
Derivative and other contracts | $ | — | $ | — | $ | — | $ | — | $ | 222 |
September 2022 Form 10-Q | 60 |
Notes to Consolidated Financial Statements (Unaudited) |
At December 31, 2021 | |||||||||||||||||
$ in millions | MABS1 | CDO | MTOB | OSF | Other2 | ||||||||||||
VIE assets (UPB) | $ | 146,071 | $ | 667 | $ | 6,089 | $ | 2,086 | $ | 52,111 | |||||||
Maximum exposure to loss3 | |||||||||||||||||
Debt and equity interests | $ | 18,062 | $ | 129 | $ | — | $ | 1,459 | $ | 10,339 | |||||||
Derivative and other contracts | — | — | 4,100 | — | 5,599 | ||||||||||||
Commitments, guarantees and other | 771 | — | — | — | 1,005 | ||||||||||||
Total | $ | 18,833 | $ | 129 | $ | 4,100 | $ | 1,459 | $ | 16,943 | |||||||
Carrying value of variable interests–Assets | |||||||||||||||||
Debt and equity interests | $ | 18,062 | $ | 129 | $ | — | $ | 1,459 | $ | 10,339 | |||||||
Derivative and other contracts | — | — | 5 | — | 2,006 | ||||||||||||
Total | $ | 18,062 | $ | 129 | $ | 5 | $ | 1,459 | $ | 12,345 | |||||||
Additional VIE assets owned4 | $ | 15,392 | |||||||||||||||
Carrying value of variable interests—Liabilities | |||||||||||||||||
Derivative and other contracts | $ | — | $ | — | $ | — | $ | — | $ | 362 |
(Unaudited) |
At September 30, 2021 | At December 31, 2020 | At September 30, 2022 | At December 31, 2021 | |||||||||||||||||||||||||
$ in millions | $ in millions | UPB | Debt and Equity Interests | UPB | Debt and Equity Interests | $ in millions | UPB | Debt and Equity Interests | UPB | Debt and Equity Interests | ||||||||||||||||||
Residential mortgages | Residential mortgages | $ | 23,049 | $ | 2,536 | $ | 17,775 | $ | 3,175 | Residential mortgages | $ | 11,853 | $ | 2,002 | $ | 15,216 | $ | 2,182 | ||||||||||
Commercial mortgages | Commercial mortgages | 67,858 | 3,741 | 62,093 | 4,131 | Commercial mortgages | 78,298 | 4,572 | 68,503 | 4,092 | ||||||||||||||||||
U.S. agency collateralized mortgage obligations | U.S. agency collateralized mortgage obligations | 62,470 | 10,881 | 99,182 | 17,224 | U.S. agency collateralized mortgage obligations | 32,493 | 4,865 | 57,972 | 9,835 | ||||||||||||||||||
Other consumer or commercial loans | Other consumer or commercial loans | 4,231 | 2,381 | 5,103 | 1,717 | Other consumer or commercial loans | 3,026 | 1,507 | 4,380 | 1,953 | ||||||||||||||||||
Total | Total | $ | 157,608 | $ | 19,539 | $ | 184,153 | $ | 26,247 | Total | $ | 125,670 | $ | 12,946 | $ | 146,071 | $ | 18,062 |
At September 30, 2021 | At September 30, 2022 | |||||||||||||||||||||||||||
$ in millions | $ in millions | RML | CML | U.S. Agency CMO | CLN and Other1 | $ in millions | RML | CML | U.S. Agency CMO | CLN and Other1 | ||||||||||||||||||
SPE assets (UPB)2 | SPE assets (UPB)2 | $ | 7,528 | $ | 92,588 | $ | 38,788 | $ | 13,481 | SPE assets (UPB)2 | $ | 9,395 | $ | 92,284 | $ | 17,854 | $ | 10,775 | ||||||||||
Retained interests | Retained interests | Retained interests | ||||||||||||||||||||||||||
Investment grade | Investment grade | $ | 93 | $ | 938 | $ | 629 | $ | — | Investment grade | $ | 111 | $ | 930 | $ | 279 | $ | — | ||||||||||
Non-investment grade | Non-investment grade | 21 | 287 | — | 74 | Non-investment grade | 24 | 504 | 11 | 45 | ||||||||||||||||||
Total | Total | $ | 114 | $ | 1,225 | $ | 629 | $ | 74 | Total | $ | 135 | $ | 1,434 | $ | 290 | $ | 45 | ||||||||||
Interests purchased in the secondary market | Interests purchased in the secondary market | Interests purchased in the secondary market | ||||||||||||||||||||||||||
Investment grade | Investment grade | $ | 7 | $ | 83 | $ | 41 | $ | — | Investment grade | $ | 33 | $ | 181 | $ | 45 | $ | — | ||||||||||
Non-investment grade | Non-investment grade | 34 | 77 | — | — | Non-investment grade | 43 | 46 | — | — | ||||||||||||||||||
Total | Total | $ | 41 | $ | 160 | $ | 41 | $ | — | Total | $ | 76 | $ | 227 | $ | 45 | $ | — | ||||||||||
Derivative assets | Derivative assets | $ | — | $ | — | $ | — | $ | 586 | Derivative assets | $ | — | $ | — | $ | — | $ | 1,259 | ||||||||||
Derivative liabilities | Derivative liabilities | — | — | — | 178 | Derivative liabilities | — | — | — | 282 |
At December 31, 2020 | At December 31, 2021 | |||||||||||||||||||||||||||
$ in millions | $ in millions | RML | CML | U.S. Agency CMO | CLN and Other1 | $ in millions | RML | CML | U.S. Agency CMO | CLN and Other1 | ||||||||||||||||||
SPE assets (UPB)2 | SPE assets (UPB)2 | $ | 7,515 | $ | 84,674 | $ | 21,061 | $ | 12,978 | SPE assets (UPB)2 | $ | 6,802 | $ | 94,276 | $ | 28,697 | $ | 13,121 | ||||||||||
Retained interests | Retained interests | Retained interests | ||||||||||||||||||||||||||
Investment grade | Investment grade | $ | 49 | $ | 822 | $ | 615 | $ | — | Investment grade | $ | 72 | $ | 638 | $ | 465 | $ | — | ||||||||||
Non-investment grade | Non-investment grade | 16 | 195 | — | 114 | Non-investment grade | 19 | 586 | — | 69 | ||||||||||||||||||
Total | Total | $ | 65 | $ | 1,017 | $ | 615 | $ | 114 | Total | $ | 91 | $ | 1,224 | $ | 465 | $ | 69 | ||||||||||
Interests purchased in the secondary market | Interests purchased in the secondary market | Interests purchased in the secondary market | ||||||||||||||||||||||||||
Investment grade | Investment grade | $ | — | $ | 96 | $ | 116 | $ | — | Investment grade | $ | 18 | $ | 118 | $ | 33 | $ | — | ||||||||||
Non-investment grade | Non-investment grade | 43 | 80 | — | 21 | Non-investment grade | 38 | 53 | — | 4 | ||||||||||||||||||
Total | Total | $ | 43 | $ | 176 | $ | 116 | $ | 21 | Total | $ | 56 | $ | 171 | $ | 33 | $ | 4 | ||||||||||
Derivative assets | Derivative assets | $ | — | $ | — | $ | — | $ | 400 | Derivative assets | $ | — | $ | — | $ | — | $ | 891 | ||||||||||
Derivative liabilities | Derivative liabilities | — | — | — | 436 | Derivative liabilities | — | — | — | 284 |
Fair Value At September 30, 2022 | |||||||||||
$ in millions | Level 2 | Level 3 | Total | ||||||||
Retained interests | |||||||||||
Investment grade | $ | 557 | $ | — | $ | 557 | |||||
Non-investment grade | 24 | 36 | 60 | ||||||||
Total | $ | 581 | $ | 36 | $ | 617 | |||||
Interests purchased in the secondary market | |||||||||||
Investment grade | $ | 257 | $ | 2 | $ | 259 | |||||
Non-investment grade | 71 | 18 | 89 | ||||||||
Total | $ | 328 | $ | 20 | $ | 348 | |||||
Derivative assets | $ | 1,259 | $ | — | $ | 1,259 | |||||
Derivative liabilities | 239 | 43 | 282 |
61 | September 2022 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
Fair Value At September 30, 2021 | |||||||||||
$ in millions | Level 2 | Level 3 | Total | ||||||||
Retained interests | |||||||||||
Investment grade | $ | 725 | $ | — | $ | 725 | |||||
Non-investment grade | 38 | 52 | 90 | ||||||||
Total | $ | 763 | $ | 52 | $ | 815 | |||||
Interests purchased in the secondary market | |||||||||||
Investment grade | $ | 124 | $ | 7 | $ | 131 | |||||
Non-investment grade | 74 | 37 | 111 | ||||||||
Total | $ | 198 | $ | 44 | $ | 242 | |||||
Derivative assets | $ | 585 | $ | 1 | $ | 586 | |||||
Derivative liabilities | 149 | 29 | 178 |
Fair Value at December 31, 2020 | Fair Value at December 31, 2021 | |||||||||||||||||||||
$ in millions | $ in millions | Level 2 | Level 3 | Total | $ in millions | Level 2 | Level 3 | Total | ||||||||||||||
Retained interests | Retained interests | Retained interests | ||||||||||||||||||||
Investment grade | Investment grade | $ | 663 | $ | — | $ | 663 | Investment grade | $ | 536 | $ | 2 | $ | 538 | ||||||||
Non-investment grade | Non-investment grade | 6 | 63 | 69 | Non-investment grade | 40 | 40 | 80 | ||||||||||||||
Total | Total | $ | 669 | $ | 63 | $ | 732 | Total | $ | 576 | $ | 42 | $ | 618 | ||||||||
Interests purchased in the secondary market | Interests purchased in the secondary market | Interests purchased in the secondary market | ||||||||||||||||||||
Investment grade | Investment grade | $ | 196 | $ | 16 | $ | 212 | Investment grade | $ | 168 | $ | 1 | $ | 169 | ||||||||
Non-investment grade | Non-investment grade | 62 | 82 | 144 | Non-investment grade | 70 | 25 | 95 | ||||||||||||||
Total | Total | $ | 258 | $ | 98 | $ | 356 | Total | $ | 238 | $ | 26 | $ | 264 | ||||||||
Derivative assets | Derivative assets | $ | 388 | $ | 12 | $ | 400 | Derivative assets | $ | 891 | $ | — | $ | 891 | ||||||||
Derivative liabilities | Derivative liabilities | 435 | 1 | 436 | Derivative liabilities | 194 | 90 | 284 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
New transactions1 | New transactions1 | $ | 12,103 | $ | 12,969 | $ | 43,303 | $ | 30,629 | New transactions1 | $ | 5,332 | $ | 12,103 | $ | 19,809 | $ | 43,303 | ||||||||||
Retained interests | Retained interests | 2,396 | 1,991 | 7,960 | 7,215 | Retained interests | 500 | 2,396 | 3,553 | 7,960 | ||||||||||||||||||
Sales of corporate loans to CLO SPEs1, 2 | Sales of corporate loans to CLO SPEs1, 2 | 144 | 234 | 217 | 373 | Sales of corporate loans to CLO SPEs1, 2 | 37 | 144 | 53 | 217 |
(Unaudited) |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Gross cash proceeds from sale of assets1 | Gross cash proceeds from sale of assets1 | $ | 64,054 | $ | 45,051 | Gross cash proceeds from sale of assets1 | $ | 50,718 | $ | 67,930 | ||||||
Fair value | Fair value | Fair value | ||||||||||||||
Assets sold | Assets sold | $ | 64,185 | $ | 46,609 | Assets sold | $ | 48,474 | $ | 68,992 | ||||||
Derivative assets recognized in the balance sheets | 901 | 1,592 | ||||||||||||||
Derivative liabilities recognized in the balance sheets | 771 | 64 | ||||||||||||||
Derivative assets recognized in the balance sheet | Derivative assets recognized in the balance sheet | 160 | 1,195 | |||||||||||||
Derivative liabilities recognized in the balance sheet | Derivative liabilities recognized in the balance sheet | 2,405 | 132 |
September 2022 Form 10-Q | 62 |
Notes to Consolidated Financial Statements (Unaudited) |
At September 30, 2021 and December 31, 2020 | At September 30, 2022 and December 31, 2021 | ||||||||||||||||||||||||
Standardized | Advanced | Standardized | Advanced | ||||||||||||||||||||||
Capital buffers | Capital buffers | Capital buffers | |||||||||||||||||||||||
Capital conservation buffer | Capital conservation buffer | — | 2.5% | Capital conservation buffer | — | 2.5% | |||||||||||||||||||
SCB | SCB | 5.7% | N/A | SCB | 5.7% | N/A | |||||||||||||||||||
G-SIB capital surcharge | G-SIB capital surcharge | 3.0% | G-SIB capital surcharge | 3.0% | |||||||||||||||||||||
CCyB1 | CCyB1 | 0% | CCyB1 | 0% | |||||||||||||||||||||
Capital buffer requirement2 | 8.7% | 5.5% | |||||||||||||||||||||||
At September 30, 2021 and December 31, 2020 | |||||||||||||||||||||||||
Regulatory Minimum | Standardized | Advanced | |||||||||||||||||||||||
Required ratios3 | |||||||||||||||||||||||||
Common Equity Tier 1 capital ratio | 4.5 | % | 13.2% | 10.0% | |||||||||||||||||||||
Tier 1 capital ratio | 6.0 | % | 14.7% | 11.5% | |||||||||||||||||||||
Total capital ratio | 8.0 | % | 16.7% | 13.5% | |||||||||||||||||||||
Capital buffer requirement | Capital buffer requirement | 8.7% | 5.5% |
Regulatory Minimum | At September 30, 2022 and December 31, 2021 | ||||||||||
Standardized | Advanced | ||||||||||
Required ratios1 | |||||||||||
Common Equity Tier 1 capital ratio | 4.5 | % | 13.2% | 10.0% | |||||||
Tier 1 capital ratio | 6.0 | % | 14.7% | 11.5% | |||||||
Total capital ratio | 8.0 | % | 16.7% | 13.5% |
(Unaudited) |
$ in millions | $ in millions | Required Ratio1 | At September 30, 2021 | At December 31, 2020 | $ in millions | Required Ratio1 | At September 30, 2022 | At December 31, 2021 | ||||||||||||||||||||||||||||||||
Risk-based capital | Risk-based capital | Risk-based capital | ||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 capital | Common Equity Tier 1 capital | $ | 75,785 | $ | 78,650 | Common Equity Tier 1 capital | $ | 67,933 | $ | 75,742 | ||||||||||||||||||||||||||||||
Tier 1 capital | Tier 1 capital | 83,435 | 88,079 | Tier 1 capital | 76,428 | 83,348 | ||||||||||||||||||||||||||||||||||
Total capital | Total capital | 94,062 | 97,213 | Total capital | 86,139 | 93,166 | ||||||||||||||||||||||||||||||||||
Total RWA | Total RWA | 473,020 | 453,106 | Total RWA | 457,911 | 471,921 | ||||||||||||||||||||||||||||||||||
Common Equity Tier 1 capital ratio | Common Equity Tier 1 capital ratio | 13.2 | % | 16.0 | % | 17.4 | % | Common Equity Tier 1 capital ratio | 13.2 | % | 14.8 | % | 16.0 | % | ||||||||||||||||||||||||||
Tier 1 capital ratio | Tier 1 capital ratio | 14.7 | % | 17.6 | % | 19.4 | % | Tier 1 capital ratio | 14.7 | % | 16.7 | % | 17.7 | % | ||||||||||||||||||||||||||
Total capital ratio | Total capital ratio | 16.7 | % | 19.9 | % | 21.5 | % | Total capital ratio | 16.7 | % | 18.8 | % | 19.7 | % | ||||||||||||||||||||||||||
$ in millions | $ in millions | Required Ratio1 | At September 30, 2021 | At December 31, 2020 | $ in millions | Required Ratio1 | At September 30, 2022 | At December 31, 2021 | ||||||||||||||||||||||||||||||||
Leverage-based capital | Leverage-based capital | Leverage-based capital | ||||||||||||||||||||||||||||||||||||||
Adjusted average assets2 | Adjusted average assets2 | $ | 1,145,682 | $ | 1,053,510 | Adjusted average assets2 | $ | 1,154,411 | $ | 1,169,939 | ||||||||||||||||||||||||||||||
Tier 1 leverage ratio | Tier 1 leverage ratio | 4.0 | % | 7.3 | % | 8.4 | % | Tier 1 leverage ratio | 4.0 | % | 6.6 | % | 7.1 | % | ||||||||||||||||||||||||||
Supplementary leverage exposure3,4 | $ | 1,459,466 | $ | 1,192,506 | ||||||||||||||||||||||||||||||||||||
SLR4 | 5.0 | % | 5.7 | % | 7.4 | % | ||||||||||||||||||||||||||||||||||
Supplementary leverage exposure3 | Supplementary leverage exposure3 | $ | 1,406,345 | $ | 1,476,962 | |||||||||||||||||||||||||||||||||||
SLR | SLR | 5.0 | % | 5.4 | % | 5.6 | % |
63 | September 2022 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
At September 30, 2021 | At December 31, 2020 | Well-Capitalized Requirement | Required Ratio1 | At September 30, 2022 | At December 31, 2021 | |||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Well-Capitalized Requirement | Required Ratio1 | Amount | Ratio | Amount | Ratio | $ in millions | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||
Risk-based capital | Risk-based capital | Risk-based capital | ||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 capital | Common Equity Tier 1 capital | 6.5 | % | 7.0 | % | $ | 18,562 | 20.8 | % | $ | 17,238 | 18.7 | % | Common Equity Tier 1 capital | 6.5 | % | 7.0 | % | $ | 18,758 | 19.5 | % | $ | 18,960 | 20.5 | % | ||||||||||||||
Tier 1 capital | Tier 1 capital | 8.0 | % | 8.5 | % | 18,562 | 20.8 | % | 17,238 | 18.7 | % | Tier 1 capital | 8.0 | % | 8.5 | % | 18,758 | 19.5 | % | 18,960 | 20.5 | % | ||||||||||||||||||
Total capital | Total capital | 10.0 | % | 10.5 | % | 19,149 | 21.4 | % | 17,882 | 19.4 | % | Total capital | 10.0 | % | 10.5 | % | 19,335 | 20.1 | % | 19,544 | 21.1 | % | ||||||||||||||||||
Leverage-based capital | Leverage-based capital | Leverage-based capital | ||||||||||||||||||||||||||||||||||||||
Tier 1 leverage | Tier 1 leverage | 5.0 | % | 4.0 | % | $ | 18,562 | 10.2 | % | $ | 17,238 | 10.1 | % | Tier 1 leverage | 5.0 | % | 4.0 | % | $ | 18,758 | 9.6 | % | $ | 18,960 | 10.2 | % | ||||||||||||||
SLR | SLR | 6.0 | % | 3.0 | % | 18,562 | 8.1 | % | 17,238 | 8.0 | % | SLR | 6.0 | % | 3.0 | % | 18,758 | 7.6 | % | 18,960 | 8.1 | % |
At September 30, 2021 | At December 31, 2020 | Well-Capitalized Requirement | Required Ratio1 | At September 30, 20222 | At December 31, 2021 | |||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Well-Capitalized Requirement | Required Ratio1 | Amount | Ratio | Amount | Ratio | $ in millions | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||
Risk-based capital | Risk-based capital | Risk-based capital | ||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 capital | Common Equity Tier 1 capital | 6.5 | % | 7.0 | % | $ | 9,972 | 24.9 | % | $ | 8,213 | 21.3 | % | Common Equity Tier 1 capital | 6.5 | % | 7.0 | % | $ | 16,134 | 29.0 | % | $ | 10,293 | 24.3 | % | ||||||||||||||
Tier 1 capital | Tier 1 capital | 8.0 | % | 8.5 | % | 9,972 | 24.9 | % | 8,213 | 21.3 | % | Tier 1 capital | 8.0 | % | 8.5 | % | 16,134 | 29.0 | % | 10,293 | 24.3 | % | ||||||||||||||||||
Total capital | Total capital | 10.0 | % | 10.5 | % | 10,045 | 25.1 | % | 8,287 | 21.5 | % | Total capital | 10.0 | % | 10.5 | % | 16,261 | 29.2 | % | 10,368 | 24.5 | % | ||||||||||||||||||
Leverage-based capital | Leverage-based capital | Leverage-based capital | ||||||||||||||||||||||||||||||||||||||
Tier 1 leverage | Tier 1 leverage | 5.0 | % | 4.0 | % | $ | 9,972 | 7.1 | % | $ | 8,213 | 7.2 | % | Tier 1 leverage | 5.0 | % | 4.0 | % | $ | 16,134 | 8.1 | % | $ | 10,293 | 6.9 | % | ||||||||||||||
SLR | SLR | 6.0 | % | 3.0 | % | 9,972 | 6.9 | % | 8,213 | 6.9 | % | SLR | 6.0 | % | 3.0 | % | 16,134 | 7.9 | % | 10,293 | 6.7 | % |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Net capital | Net capital | $ | 15,922 | $ | 12,869 | Net capital | $ | 14,886 | $ | 18,383 | ||||||
Excess net capital | Excess net capital | 12,043 | 9,034 | Excess net capital | 10,405 | 14,208 |
(Unaudited) |
Shares Outstanding | Carrying Value | Shares Outstanding | Carrying Value | |||||||||||||||||||||||||
$ in millions, except per share data | $ in millions, except per share data | At September 30, 2021 | Liquidation Preference per Share | At September 30, 2021 | At December 31, 2020 | $ in millions, except per share data | At September 30, 2022 | Liquidation Preference per Share | At September 30, 2022 | At December 31, 2021 | ||||||||||||||||||
Series | Series | Series | ||||||||||||||||||||||||||
A | A | 44,000 | $ | 25,000 | $ | 1,100 | $ | 1,100 | A | 44,000 | $ | 25,000 | $ | 1,100 | $ | 1,100 | ||||||||||||
C1 | C1 | 519,882 | 1,000 | 408 | 408 | C1 | 519,882 | 1,000 | 408 | 408 | ||||||||||||||||||
E | E | 34,500 | 25,000 | 862 | 862 | E | 34,500 | 25,000 | 862 | 862 | ||||||||||||||||||
F | F | 34,000 | 25,000 | 850 | 850 | F | 34,000 | 25,000 | 850 | 850 | ||||||||||||||||||
H | 52,000 | 25,000 | 1,300 | 1,300 | ||||||||||||||||||||||||
I | I | 40,000 | 25,000 | 1,000 | 1,000 | I | 40,000 | 25,000 | 1,000 | 1,000 | ||||||||||||||||||
J2 | — | — | — | 1,500 | ||||||||||||||||||||||||
K | K | 40,000 | 25,000 | 1,000 | 1,000 | K | 40,000 | 25,000 | 1,000 | 1,000 | ||||||||||||||||||
L | L | 20,000 | 25,000 | 500 | 500 | L | 20,000 | 25,000 | 500 | 500 | ||||||||||||||||||
M | M | 400,000 | 1,000 | 430 | 430 | M | 400,000 | 1,000 | 430 | 430 | ||||||||||||||||||
N | N | 3,000 | 100,000 | 300 | 300 | N | 3,000 | 100,000 | 300 | 300 | ||||||||||||||||||
O | O | 52,000 | 25,000 | 1,300 | 1,300 | |||||||||||||||||||||||
P | P | 40,000 | 25,000 | 1,000 | — | |||||||||||||||||||||||
Total | Total | $ | 7,750 | $ | 9,250 | Total | $ | 8,750 | $ | 7,750 | ||||||||||||||||||
Shares authorized | Shares authorized | 30,000,000 | Shares authorized | 30,000,000 |
September 2022 Form 10-Q | 64 |
Notes to Consolidated Financial Statements (Unaudited) |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Repurchases of common stock under the Firm’s Share Repurchase Program | $ | 3,557 | $ | — | $ | 8,631 | $ | 1,347 | ||||||||||||||||||||
Repurchases of common stock under the Firm’s Share Repurchase Authorization | Repurchases of common stock under the Firm’s Share Repurchase Authorization | $ | 2,555 | $ | 3,557 | $ | 8,165 | $ | 8,631 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
in millions | in millions | 2021 | 2020 | 2021 | 2020 | in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Weighted average common shares outstanding, basic | Weighted average common shares outstanding, basic | 1,781 | 1,542 | 1,797 | 1,546 | Weighted average common shares outstanding, basic | 1,674 | 1,781 | 1,704 | 1,797 | ||||||||||||||||||
Effect of dilutive Stock options, RSUs and PSUs | 31 | 24 | 27 | 19 | ||||||||||||||||||||||||
Effect of dilutive RSUs and PSUs | Effect of dilutive RSUs and PSUs | 23 | 31 | 21 | 27 | |||||||||||||||||||||||
Weighted average common shares outstanding and common stock equivalents, diluted | Weighted average common shares outstanding and common stock equivalents, diluted | 1,812 | 1,566 | 1,824 | 1,565 | Weighted average common shares outstanding and common stock equivalents, diluted | 1,697 | 1,812 | 1,725 | 1,824 | ||||||||||||||||||
Weighted average antidilutive common stock equivalents (excluded from the computation of diluted EPS) | Weighted average antidilutive common stock equivalents (excluded from the computation of diluted EPS) | — | — | — | 7 | Weighted average antidilutive common stock equivalents (excluded from the computation of diluted EPS) | 1 | — | 5 | — |
(Unaudited) |
$ in millions, except per share data | $ in millions, except per share data | Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | $ in millions, except per share data | Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | ||||||||||||||||||||||
Per Share1 | Total | Per Share1 | Total | Per Share1 | Total | Per Share1 | Total | |||||||||||||||||||||
Preferred stock series | Preferred stock series | Preferred stock series | ||||||||||||||||||||||||||
A | A | $ | 256 | $ | 11 | $ | 256 | $ | 11 | A | $ | 261 | $ | 11 | $ | 256 | $ | 11 | ||||||||||
C | C | 25 | 13 | 25 | 13 | C | 25 | 13 | 25 | 13 | ||||||||||||||||||
E | E | 445 | 15 | 445 | 15 | E | 445 | 15 | 445 | 15 | ||||||||||||||||||
F | F | 430 | 15 | 430 | 15 | F | 430 | 15 | 430 | 15 | ||||||||||||||||||
H | 239 | 12 | 248 | 13 | ||||||||||||||||||||||||
H2 | H2 | — | — | 239 | 12 | |||||||||||||||||||||||
I | I | 398 | 16 | 398 | 16 | I | 398 | 16 | 398 | 16 | ||||||||||||||||||
J2 | — | — | 261 | 16 | ||||||||||||||||||||||||
K | K | 366 | 15 | 366 | 15 | K | 366 | 15 | 366 | 15 | ||||||||||||||||||
L | L | 305 | 6 | 305 | 6 | L | 305 | 6 | 305 | 6 | ||||||||||||||||||
M3 | 29 | 12 | — | — | ||||||||||||||||||||||||
N4 | 2,650 | 8 | — | — | ||||||||||||||||||||||||
M4 | M4 | 29 | 12 | 29 | 12 | |||||||||||||||||||||||
N5 | N5 | 2,650 | 8 | 2,650 | 8 | |||||||||||||||||||||||
O6 | O6 | 266 | 14 | — | — | |||||||||||||||||||||||
P | P | 330 | 13 | — | — | |||||||||||||||||||||||
Total Preferred stock | Total Preferred stock | $ | 123 | $ | 120 | Total Preferred stock | $ | 138 | $ | 123 | ||||||||||||||||||
Common stock | Common stock | 0.70 | $ | 1,276 | $ | 0.35 | $ | 551 | Common stock | $ | 0.775 | $ | 1,329 | $ | 0.700 | $ | 1,276 |
$ in millions, except per share data | $ in millions, except per share data | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | $ in millions, except per share data | Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | ||||||||||||||||||||||
Per Share1 | Total | Per Share1 | Total | Per Share1 | Total | Per Share1 | Total | |||||||||||||||||||||
Preferred stock series | Preferred stock series | Preferred stock series | ||||||||||||||||||||||||||
A | A | $ | 758 | $ | 33 | $ | 761 | $ | 33 | A | $ | 756 | $ | 33 | $ | 758 | $ | 33 | ||||||||||
C | C | 75 | 39 | 75 | 39 | C | 75 | 39 | 75 | 39 | ||||||||||||||||||
E | E | 1,336 | 45 | 1,336 | 45 | E | 1,336 | 45 | 1,336 | 45 | ||||||||||||||||||
F | F | 1,289 | 44 | 1,289 | 44 | F | 1,289 | 44 | 1,289 | 44 | ||||||||||||||||||
H | 719 | 37 | 897 | 47 | ||||||||||||||||||||||||
H2 | H2 | — | — | 719 | 37 | |||||||||||||||||||||||
I | I | 1,195 | 48 | 1,195 | 48 | I | 1,195 | 48 | 1,195 | 48 | ||||||||||||||||||
J2 | 253 | 15 | 955 | 58 | ||||||||||||||||||||||||
J3 | J3 | — | — | 253 | 15 | |||||||||||||||||||||||
K | K | 1,097 | 45 | 1,097 | 45 | K | 1,097 | 45 | 1,097 | 45 | ||||||||||||||||||
L | L | 914 | 18 | 914 | 18 | L | 914 | 18 | 914 | 18 | ||||||||||||||||||
M3 | 59 | 24 | — | — | ||||||||||||||||||||||||
N4 | 5,300 | 16 | — | — | ||||||||||||||||||||||||
M4 | M4 | 59 | 24 | 59 | 24 | |||||||||||||||||||||||
N5 | N5 | 5,300 | 16 | 5,300 | 16 | |||||||||||||||||||||||
O6 | O6 | 797 | 41 | — | — | |||||||||||||||||||||||
P | P | 330 | 13 | — | — | |||||||||||||||||||||||
Total Preferred stock | Total Preferred stock | $ | 364 | $ | 377 | Total Preferred stock | $ | 366 | $ | 364 | ||||||||||||||||||
Common stock | Common stock | $ | 1.40 | $ | 2,562 | $ | 1.05 | $ | 1,662 | Common stock | $ | 2.175 | $ | 3,802 | $ | 1.400 | $ | 2,562 |
$ in millions | CTA | AFS Securities | Pension and Other | DVA | Total | ||||||||||||
June 30, 2021 | $ | (895) | $ | 1,004 | $ | (481) | $ | (2,151) | $ | (2,523) | |||||||
OCI during the period | (65) | (256) | 5 | 138 | (178) | ||||||||||||
September 30, 2021 | $ | (960) | $ | 748 | $ | (476) | $ | (2,013) | $ | (2,701) | |||||||
June 30, 2020 | $ | (1,017) | $ | 1,827 | $ | (620) | $ | (189) | $ | 1 | |||||||
OCI during the period | 81 | (62) | 5 | (562) | (538) | ||||||||||||
September 30, 2020 | $ | (936) | $ | 1,765 | $ | (615) | $ | (751) | $ | (537) | |||||||
December 31, 2020 | $ | (795) | $ | 1,787 | $ | (498) | $ | (2,456) | $ | (1,962) | |||||||
OCI during the period | (165) | (1,039) | 22 | 443 | (739) | ||||||||||||
September 30, 2021 | $ | (960) | $ | 748 | $ | (476) | $ | (2,013) | $ | (2,701) | |||||||
December 31, 2019 | $ | (897) | $ | 207 | $ | (644) | $ | (1,454) | $ | (2,788) | |||||||
OCI during the period | (39) | 1,558 | 29 | 703 | 2,251 | ||||||||||||
September 30, 2020 | $ | (936) | $ | 1,765 | $ | (615) | $ | (751) | $ | (537) |
Three Months Ended September 30, 2021 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non- controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | (14) | $ | (64) | $ | (78) | $ | (13) | $ | (65) | |||||||
Reclassified to earnings | — | — | — | — | — | ||||||||||||
Net OCI | $ | (14) | $ | (64) | $ | (78) | $ | (13) | $ | (65) | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | (317) | $ | 74 | $ | (243) | $ | — | $ | (243) | |||||||
Reclassified to earnings | (17) | 4 | (13) | — | (13) | ||||||||||||
Net OCI | $ | (334) | $ | 78 | $ | (256) | $ | — | $ | (256) | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||
Reclassified to earnings | 7 | (2) | 5 | — | 5 | ||||||||||||
Net OCI | $ | 7 | $ | (2) | $ | 5 | $ | — | $ | 5 | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | 187 | $ | (46) | $ | 141 | $ | 9 | $ | 132 | |||||||
Reclassified to earnings | 9 | (3) | 6 | — | 6 | ||||||||||||
Net OCI | $ | 196 | $ | (49) | $ | 147 | $ | 9 | $ | 138 |
Three Months Ended September 30, 2020 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non- controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | 34 | $ | 76 | $ | 110 | $ | 29 | $ | 81 | |||||||
Reclassified to earnings | — | — | — | — | — | ||||||||||||
Net OCI | $ | 34 | $ | 76 | $ | 110 | $ | 29 | $ | 81 | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | (26) | $ | 6 | $ | (20) | $ | — | $ | (20) | |||||||
Reclassified to earnings | (55) | 13 | (42) | — | (42) | ||||||||||||
Net OCI | $ | (81) | $ | 19 | $ | (62) | $ | — | $ | (62) | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | (1) | $ | 1 | $ | — | $ | — | $ | — | |||||||
Reclassified to earnings | 6 | (1) | 5 | — | 5 | ||||||||||||
Net OCI | $ | 5 | $ | — | $ | 5 | $ | — | $ | 5 | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | (747) | $ | 178 | $ | (569) | $ | (1) | $ | (568) | |||||||
Reclassified to earnings | 8 | (2) | 6 | — | 6 | ||||||||||||
Net OCI | $ | (739) | $ | 176 | $ | (563) | $ | (1) | $ | (562) |
Nine Months Ended September 30, 2021 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non- controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | (106) | $ | (150) | $ | (256) | $ | (91) | $ | (165) | |||||||
Reclassified to earnings | — | — | — | — | — | ||||||||||||
Net OCI | $ | (106) | $ | (150) | $ | (256) | $ | (91) | $ | (165) | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | (1,146) | $ | 267 | $ | (879) | $ | — | $ | (879) | |||||||
Reclassified to earnings | (209) | 49 | (160) | — | (160) | ||||||||||||
Net OCI | $ | (1,355) | $ | 316 | $ | (1,039) | $ | — | $ | (1,039) | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | 8 | $ | — | $ | 8 | $ | — | $ | 8 | |||||||
Reclassified to earnings | 21 | (7) | 14 | — | 14 | ||||||||||||
Net OCI | $ | 29 | $ | (7) | $ | 22 | $ | — | $ | 22 | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | 591 | $ | (148) | $ | 443 | $ | 27 | $ | 416 | |||||||
Reclassified to earnings | 36 | (9) | 27 | — | 27 | ||||||||||||
Net OCI | $ | 627 | $ | (157) | $ | 470 | $ | 27 | $ | 443 |
September |
Notes to Consolidated Financial Statements (Unaudited) |
Nine Months Ended September 30, 2020 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non- controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | 19 | $ | (17) | $ | 2 | $ | 38 | $ | (36) | |||||||
Reclassified to earnings | (3) | — | (3) | — | (3) | ||||||||||||
Net OCI | $ | 16 | $ | (17) | $ | (1) | $ | 38 | $ | (39) | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | 2,142 | $ | (503) | $ | 1,639 | $ | — | $ | 1,639 | |||||||
Reclassified to earnings | (106) | 25 | (81) | — | (81) | ||||||||||||
Net OCI | $ | 2,036 | $ | (478) | $ | 1,558 | $ | — | $ | 1,558 | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | 20 | $ | (4) | $ | 16 | $ | — | $ | 16 | |||||||
Reclassified to earnings | 16 | (3) | 13 | — | 13 | ||||||||||||
Net OCI | $ | 36 | $ | (7) | $ | 29 | $ | — | $ | 29 | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | 967 | $ | (233) | $ | 734 | $ | 41 | $ | 693 | |||||||
Reclassified to earnings | 14 | (4) | 10 | — | 10 | ||||||||||||
Net OCI | $ | 981 | $ | (237) | $ | 744 | $ | 41 | $ | 703 |
$ in millions | CTA | AFS Securities | Pension and Other | DVA | Total | ||||||||||||
June 30, 2022 | $ | (1,226) | $ | (3,226) | $ | (543) | $ | (26) | $ | (5,021) | |||||||
OCI during the period | (207) | (1,307) | 5 | 772 | (737) | ||||||||||||
September 30, 2022 | $ | (1,433) | $ | (4,533) | $ | (538) | $ | 746 | $ | (5,758) | |||||||
June 30, 2021 | $ | (895) | $ | 1,004 | $ | (481) | $ | (2,151) | $ | (2,523) | |||||||
OCI during the period | (65) | (256) | 5 | 138 | (178) | ||||||||||||
September 30, 2021 | $ | (960) | $ | 748 | $ | (476) | $ | (2,013) | $ | (2,701) | |||||||
December 31, 2021 | $ | (1,002) | $ | 245 | $ | (551) | $ | (1,794) | $ | (3,102) | |||||||
OCI during the period | (431) | (4,778) | 13 | 2,540 | (2,656) | ||||||||||||
September 30, 2022 | $ | (1,433) | $ | (4,533) | $ | (538) | $ | 746 | $ | (5,758) | |||||||
December 31, 2020 | $ | (795) | $ | 1,787 | $ | (498) | $ | (2,456) | $ | (1,962) | |||||||
OCI during the period | (165) | (1,039) | 22 | 443 | (739) | ||||||||||||
September 30, 2021 | $ | (960) | $ | 748 | $ | (476) | $ | (2,013) | $ | (2,701) |
Three Months Ended September 30, 2022 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non- controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | (85) | $ | (183) | $ | (268) | $ | (61) | $ | (207) | |||||||
Reclassified to earnings | — | — | — | — | — | ||||||||||||
Net OCI | $ | (85) | $ | (183) | $ | (268) | $ | (61) | $ | (207) | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | (1,698) | $ | 398 | $ | (1,300) | $ | — | $ | (1,300) | |||||||
Reclassified to earnings | (9) | 2 | (7) | — | (7) | ||||||||||||
Net OCI | $ | (1,707) | $ | 400 | $ | (1,307) | $ | — | $ | (1,307) | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | 1 | $ | — | $ | 1 | $ | — | $ | 1 | |||||||
Reclassified to earnings | 6 | (2) | 4 | — | 4 | ||||||||||||
Net OCI | $ | 7 | $ | (2) | $ | 5 | $ | — | $ | 5 | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | 1,082 | $ | (266) | $ | 816 | $ | 44 | $ | 772 | |||||||
Reclassified to earnings | — | — | — | — | — | ||||||||||||
Net OCI | $ | 1,082 | $ | (266) | $ | 816 | $ | 44 | $ | 772 |
Three Months Ended September 30, 2021 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non- controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | (14) | $ | (64) | $ | (78) | $ | (13) | $ | (65) | |||||||
Reclassified to earnings | — | — | — | — | — | ||||||||||||
Net OCI | $ | (14) | $ | (64) | $ | (78) | $ | (13) | $ | (65) | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | (317) | $ | 74 | $ | (243) | $ | — | $ | (243) | |||||||
Reclassified to earnings | (17) | 4 | (13) | — | (13) | ||||||||||||
Net OCI | $ | (334) | $ | 78 | $ | (256) | $ | — | $ | (256) | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||
Reclassified to earnings | 7 | (2) | 5 | — | 5 | ||||||||||||
Net OCI | $ | 7 | $ | (2) | $ | 5 | $ | — | $ | 5 | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | 187 | $ | (46) | $ | 141 | $ | 9 | $ | 132 | |||||||
Reclassified to earnings | 9 | (3) | 6 | — | 6 | ||||||||||||
Net OCI | $ | 196 | $ | (49) | $ | 147 | $ | 9 | $ | 138 |
Nine Months Ended September 30, 2022 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non- controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | (279) | $ | (441) | $ | (720) | $ | (230) | $ | (490) | |||||||
Reclassified to earnings | — | 59 | 59 | — | 59 | ||||||||||||
Net OCI | $ | (279) | $ | (382) | $ | (661) | $ | (230) | $ | (431) | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | (6,169) | $ | 1,445 | $ | (4,724) | $ | — | $ | (4,724) | |||||||
Reclassified to earnings | (71) | 17 | (54) | — | (54) | ||||||||||||
Net OCI | $ | (6,240) | $ | 1,462 | $ | (4,778) | $ | — | $ | (4,778) | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | (1) | $ | — | $ | (1) | $ | — | $ | (1) | |||||||
Reclassified to earnings | 17 | (3) | 14 | — | 14 | ||||||||||||
Net OCI | $ | 16 | $ | (3) | $ | 13 | $ | — | $ | 13 | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | 3,474 | $ | (845) | $ | 2,629 | $ | 88 | $ | 2,541 | |||||||
Reclassified to earnings | (1) | — | (1) | — | (1) | ||||||||||||
Net OCI | $ | 3,473 | $ | (845) | $ | 2,628 | $ | 88 | $ | 2,540 |
Nine Months Ended September 30, 2021 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non- controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | (106) | $ | (150) | $ | (256) | $ | (91) | $ | (165) | |||||||
Reclassified to earnings | — | — | — | — | — | ||||||||||||
Net OCI | $ | (106) | $ | (150) | $ | (256) | $ | (91) | $ | (165) | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | (1,146) | $ | 267 | $ | (879) | $ | — | $ | (879) | |||||||
Reclassified to earnings | (209) | 49 | (160) | — | (160) | ||||||||||||
Net OCI | $ | (1,355) | $ | 316 | $ | (1,039) | $ | — | $ | (1,039) | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | 8 | $ | — | $ | 8 | $ | — | $ | 8 | |||||||
Reclassified to earnings | 21 | (7) | 14 | — | 14 | ||||||||||||
Net OCI | $ | 29 | $ | (7) | $ | 22 | $ | — | $ | 22 | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | 591 | $ | (148) | $ | 443 | $ | 27 | $ | 416 | |||||||
Reclassified to earnings | 36 | (9) | 27 | — | 27 | ||||||||||||
Net OCI | $ | 627 | $ | (157) | $ | 470 | $ | 27 | $ | 443 |
September 2022 Form 10-Q | 66 |
Notes to Consolidated Financial Statements (Unaudited) |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Interest income | Interest income | Interest income | ||||||||||||||||||||||||||
Investment securities | Investment securities | $ | 643 | $ | 529 | $ | 2,100 | $ | 1,603 | Investment securities | $ | 743 | $ | 643 | $ | 2,261 | $ | 2,100 | ||||||||||
Loans | Loans | 1,063 | 967 | 3,091 | 3,171 | Loans | 1,910 | 1,063 | 4,469 | 3,091 | ||||||||||||||||||
Securities purchased under agreements to resell and Securities borrowed1 | (282) | (187) | (899) | 70 | ||||||||||||||||||||||||
Securities purchased under agreements to resell1,2 | Securities purchased under agreements to resell1,2 | 664 | (36) | 870 | (147) | |||||||||||||||||||||||
Securities borrowed1,3 | Securities borrowed1,3 | 385 | (246) | 97 | (752) | |||||||||||||||||||||||
Trading assets, net of Trading liabilities | Trading assets, net of Trading liabilities | 525 | 537 | 1,521 | 1,902 | Trading assets, net of Trading liabilities | 635 | 525 | 1,722 | 1,521 | ||||||||||||||||||
Customer receivables and Other2 | 402 | 210 | 1,187 | 1,171 | ||||||||||||||||||||||||
Customer receivables and Other4 | Customer receivables and Other4 | 1,764 | 402 | 2,944 | 1,187 | |||||||||||||||||||||||
Total interest income | Total interest income | $ | 2,351 | $ | 2,056 | $ | 7,000 | $ | 7,917 | Total interest income | $ | 6,101 | $ | 2,351 | $ | 12,363 | $ | 7,000 | ||||||||||
Interest expense | Interest expense | Interest expense | ||||||||||||||||||||||||||
Deposits | Deposits | $ | 102 | $ | 178 | $ | 330 | $ | 804 | Deposits | $ | 476 | $ | 102 | $ | 684 | $ | 330 | ||||||||||
Borrowings | Borrowings | 597 | 714 | 2,030 | 2,534 | Borrowings | 1,370 | 597 | 2,990 | 2,030 | ||||||||||||||||||
Securities sold under agreements to repurchase and Securities loaned3 | 131 | 165 | 361 | 883 | ||||||||||||||||||||||||
Customer payables and Other4 | (542) | (487) | (1,677) | (746) | ||||||||||||||||||||||||
Securities sold under agreements to repurchase1,5 | Securities sold under agreements to repurchase1,5 | 501 | 19 | 725 | 82 | |||||||||||||||||||||||
Securities loaned1,6 | Securities loaned1,6 | 135 | 112 | 340 | 279 | |||||||||||||||||||||||
Customer payables and Other7 | Customer payables and Other7 | 1,109 | (542) | 616 | (1,677) | |||||||||||||||||||||||
Total interest expense | Total interest expense | $ | 288 | $ | 570 | $ | 1,044 | $ | 3,475 | Total interest expense | $ | 3,591 | $ | 288 | $ | 5,355 | $ | 1,044 | ||||||||||
Net interest | Net interest | $ | 2,063 | $ | 1,486 | $ | 5,956 | $ | 4,442 | Net interest | $ | 2,510 | $ | 2,063 | $ | 7,008 | $ | 5,956 |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Customer and other receivables | Customer and other receivables | $ | 2,229 | $ | 1,652 | Customer and other receivables | $ | 3,242 | $ | 1,800 | ||||||
Customer and other payables | Customer and other payables | 2,374 | 2,119 | Customer and other payables | 3,401 | 2,164 |
Three Months Ended September 30, 2022 | |||||||||||||||||
$ in millions | IS | WM | IM | I/E | Total | ||||||||||||
Investment banking | $ | 1,277 | $ | 114 | $ | — | $ | (18) | $ | 1,373 | |||||||
Trading | 3,330 | (41) | 32 | 10 | 3,331 | ||||||||||||
Investments | (73) | 18 | (113) | — | (168) | ||||||||||||
Commissions and fees1 | 648 | 543 | — | (58) | 1,133 | ||||||||||||
Asset management1,2 | 140 | 3,389 | 1,269 | (54) | 4,744 | ||||||||||||
Other | (25) | 93 | (1) | (4) | 63 | ||||||||||||
Total non-interest revenues | 5,297 | 4,116 | 1,187 | (124) | 10,476 | ||||||||||||
Interest income | 3,889 | 2,626 | 18 | (432) | 6,101 | ||||||||||||
Interest expense | 3,369 | 622 | 37 | (437) | 3,591 | ||||||||||||
Net interest | 520 | 2,004 | (19) | 5 | 2,510 | ||||||||||||
Net revenues | $ | 5,817 | $ | 6,120 | $ | 1,168 | $ | (119) | $ | 12,986 | |||||||
Provision for credit losses | $ | 24 | $ | 11 | $ | — | $ | — | $ | 35 | |||||||
Compensation and benefits | 1,948 | 3,171 | 495 | — | 5,614 | ||||||||||||
Non-compensation expenses | 2,219 | 1,289 | 557 | (116) | 3,949 | ||||||||||||
Total non-interest expenses | $ | 4,167 | $ | 4,460 | $ | 1,052 | $ | (116) | $ | 9,563 | |||||||
Income before provision for income taxes | $ | 1,626 | $ | 1,649 | $ | 116 | $ | (3) | $ | 3,388 | |||||||
Provision for income taxes | 305 | 396 | 26 | (1) | 726 | ||||||||||||
Net income | 1,321 | 1,253 | 90 | (2) | 2,662 | ||||||||||||
Net income applicable to noncontrolling interests | 47 | — | (17) | — | 30 | ||||||||||||
Net income applicable to Morgan Stanley | $ | 1,274 | $ | 1,253 | $ | 107 | $ | (2) | $ | 2,632 |
Three Months Ended September 30, 2021 | |||||||||||||||||
$ in millions | IS | WM | IM | I/E | Total | ||||||||||||
Investment banking | $ | 2,849 | $ | 186 | $ | — | $ | (22) | $ | 3,013 | |||||||
Trading | 2,897 | (58) | 1 | 21 | 2,861 | ||||||||||||
Investments | 52 | 8 | (15) | — | 45 | ||||||||||||
Commissions and fees1 | 664 | 704 | — | (88) | 1,280 | ||||||||||||
Asset management1,2 | 145 | 3,628 | 1,470 | (42) | 5,201 | ||||||||||||
Other | 172 | 119 | — | (1) | 290 | ||||||||||||
Total non-interest revenues | 6,779 | 4,587 | 1,456 | (132) | 12,690 | ||||||||||||
Interest income | 948 | 1,464 | 8 | (69) | 2,351 | ||||||||||||
Interest expense | 232 | 116 | 11 | (71) | 288 | ||||||||||||
Net interest | 716 | 1,348 | (3) | 2 | 2,063 | ||||||||||||
Net revenues | $ | 7,495 | $ | 5,935 | $ | 1,453 | $ | (130) | $ | 14,753 | |||||||
Provision for credit losses | $ | 24 | $ | — | $ | — | $ | — | $ | 24 | |||||||
Compensation and benefits | 2,248 | 3,159 | 513 | — | 5,920 | ||||||||||||
Non-compensation expenses | 2,250 | 1,246 | 570 | (131) | 3,935 | ||||||||||||
Total non-interest expenses | $ | 4,498 | $ | 4,405 | $ | 1,083 | $ | (131) | $ | 9,855 | |||||||
Income before provision for income taxes | $ | 2,973 | $ | 1,530 | $ | 370 | $ | 1 | $ | 4,874 | |||||||
Provision for income taxes | 713 | 373 | 64 | — | 1,150 | ||||||||||||
Net income | 2,260 | 1,157 | 306 | 1 | 3,724 | ||||||||||||
Net income applicable to noncontrolling interests | 31 | — | (14) | — | 17 | ||||||||||||
Net income applicable to Morgan Stanley | $ | 2,229 | $ | 1,157 | $ | 320 | $ | 1 | $ | 3,707 |
67 | September |
Notes to Consolidated Financial Statements (Unaudited) |
Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | IS | WM | IM | I/E | Total | $ in millions | IS | WM | IM | I/E | Total | ||||||||||||||||||||||
Investment banking | Investment banking | $ | 1,707 | $ | 135 | $ | — | $ | (16) | $ | 1,826 | Investment banking | $ | 3,983 | $ | 354 | $ | — | $ | (56) | $ | 4,281 | ||||||||||||
Trading3 | 2,865 | 268 | 2 | 15 | 3,150 | |||||||||||||||||||||||||||||
Trading | Trading | 11,511 | (681) | 38 | 43 | 10,911 | ||||||||||||||||||||||||||||
Investments | Investments | 87 | 1 | 258 | — | 346 | Investments | (69) | 45 | (46) | — | (70) | ||||||||||||||||||||||
Commissions and fees1 | Commissions and fees1 | 639 | 477 | 1 | (80) | 1,037 | Commissions and fees1 | 2,110 | 1,869 | — | (210) | 3,769 | ||||||||||||||||||||||
Asset management1,2 | Asset management1,2 | 114 | 2,793 | 795 | (38) | 3,664 | Asset management1,2 | 442 | 10,525 | 3,961 | (153) | 14,775 | ||||||||||||||||||||||
Other3 | 123 | 91 | 1 | (3) | 212 | |||||||||||||||||||||||||||||
Other | Other | (131) | 388 | (2) | (10) | 245 | ||||||||||||||||||||||||||||
Total non-interest revenues | Total non-interest revenues | 5,535 | 3,765 | 1,057 | (122) | 10,235 | Total non-interest revenues | 17,846 | 12,500 | 3,951 | (386) | 33,911 | ||||||||||||||||||||||
Interest income | Interest income | 1,086 | 1,065 | 7 | (102) | 2,056 | Interest income | 6,797 | 6,208 | 34 | (676) | 12,363 | ||||||||||||||||||||||
Interest expense | Interest expense | 492 | 176 | 8 | (106) | 570 | Interest expense | 5,050 | 917 | 71 | (683) | 5,355 | ||||||||||||||||||||||
Net interest | Net interest | 594 | 889 | (1) | 4 | 1,486 | Net interest | 1,747 | 5,291 | (37) | 7 | 7,008 | ||||||||||||||||||||||
Net revenues3 | $ | 6,129 | $ | 4,654 | $ | 1,056 | $ | (118) | $ | 11,721 | ||||||||||||||||||||||||
Provision for credit losses3 | $ | 113 | $ | (2) | $ | — | $ | — | $ | 111 | ||||||||||||||||||||||||
Net revenues | Net revenues | $ | 19,593 | $ | 17,791 | $ | 3,914 | $ | (379) | $ | 40,919 | |||||||||||||||||||||||
Provision for credit losses | Provision for credit losses | $ | 150 | $ | 43 | $ | — | $ | — | $ | 193 | |||||||||||||||||||||||
Compensation and benefits | Compensation and benefits | 2,001 | 2,684 | 401 | — | 5,086 | Compensation and benefits | 6,602 | 9,191 | 1,645 | — | 17,438 | ||||||||||||||||||||||
Non-compensation expenses3 | 1,967 | 852 | 340 | (122) | 3,037 | |||||||||||||||||||||||||||||
Total non-interest expenses3 | $ | 3,968 | $ | 3,536 | $ | 741 | $ | (122) | $ | 8,123 | ||||||||||||||||||||||||
Non-compensation expenses | Non-compensation expenses | 6,874 | 3,814 | 1,676 | (371) | 11,993 | ||||||||||||||||||||||||||||
Total non-interest expenses | Total non-interest expenses | $ | 13,476 | $ | 13,005 | $ | 3,321 | $ | (371) | $ | 29,431 | |||||||||||||||||||||||
Income before provision for income taxes | Income before provision for income taxes | $ | 2,048 | $ | 1,120 | $ | 315 | $ | 4 | $ | 3,487 | Income before provision for income taxes | $ | 5,967 | $ | 4,743 | $ | 593 | $ | (8) | $ | 11,295 | ||||||||||||
Provision for income taxes | Provision for income taxes | 385 | 278 | 72 | 1 | 736 | Provision for income taxes | 1,235 | 1,028 | 121 | (2) | 2,382 | ||||||||||||||||||||||
Net income | Net income | 1,663 | 842 | 243 | 3 | 2,751 | Net income | 4,732 | 3,715 | 472 | (6) | 8,913 | ||||||||||||||||||||||
Net income applicable to noncontrolling interests | Net income applicable to noncontrolling interests | 16 | — | 18 | — | 34 | Net income applicable to noncontrolling interests | 146 | — | (26) | — | 120 | ||||||||||||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | $ | 1,647 | $ | 842 | $ | 225 | $ | 3 | $ | 2,717 | Net income applicable to Morgan Stanley | $ | 4,586 | $ | 3,715 | $ | 498 | $ | (6) | $ | 8,793 |
Nine Months Ended September 30, 2021 | |||||||||||||||||
$ in millions | IS | WM | IM | I/E | Total | ||||||||||||
Investment banking | $ | 7,838 | $ | 640 | $ | — | $ | (65) | $ | 8,413 | |||||||
Trading | 10,048 | 323 | (18) | 63 | 10,416 | ||||||||||||
Investments | 199 | 24 | 521 | — | 744 | ||||||||||||
Commissions and fees1 | 2,216 | 2,269 | 1 | (272) | 4,214 | ||||||||||||
Asset management1,2 | 432 | 10,266 | 3,991 | (117) | 14,572 | ||||||||||||
Other | 467 | 479 | (23) | (7) | 916 | ||||||||||||
Total non-interest revenues | 21,200 | 14,001 | 4,472 | (398) | 39,275 | ||||||||||||
Interest income | 2,791 | 4,316 | 26 | (133) | 7,000 | ||||||||||||
Interest expense | 827 | 328 | 29 | (140) | 1,044 | ||||||||||||
Net interest | 1,964 | 3,988 | (3) | 7 | 5,956 | ||||||||||||
Net revenues | $ | 23,164 | $ | 17,989 | $ | 4,469 | $ | (391) | $ | 45,231 | |||||||
Provision for credit losses | $ | 1 | $ | (2) | $ | — | $ | — | $ | (1) | |||||||
Compensation and benefits | 7,795 | 9,604 | 1,742 | — | 19,141 | ||||||||||||
Non-compensation expenses | 6,526 | 3,621 | 1,557 | (397) | 11,307 | ||||||||||||
Total non-interest expenses | $ | 14,321 | $ | 13,225 | $ | 3,299 | $ | (397) | $ | 30,448 | |||||||
Income before provision for income taxes | $ | 8,842 | $ | 4,766 | $ | 1,170 | $ | 6 | $ | 14,784 | |||||||
Provision for income taxes | 2,023 | 1,103 | 253 | 1 | 3,380 | ||||||||||||
Net income | 6,819 | 3,663 | 917 | 5 | 11,404 | ||||||||||||
Net income applicable to noncontrolling interests | 85 | — | (19) | — | 66 | ||||||||||||
Net income applicable to Morgan Stanley | $ | 6,734 | $ | 3,663 | $ | 936 | $ | 5 | $ | 11,338 |
Nine Months Ended September 30, 2020 | |||||||||||||||||
$ in millions | IS | WM | IM | I/E | Total | ||||||||||||
Investment banking | $ | 4,902 | $ | 403 | $ | — | $ | (66) | $ | 5,239 | |||||||
Trading3 | 10,298 | 413 | (13) | 56 | 10,754 | ||||||||||||
Investments | 98 | 9 | 552 | — | 659 | ||||||||||||
Commissions and fees1 | 2,230 | 1,538 | 1 | (270) | 3,499 | ||||||||||||
Asset management1,2 | 342 | 7,980 | 2,144 | (120) | 10,346 | ||||||||||||
Other3 | 11 | 256 | (39) | (7) | 221 | ||||||||||||
Total non-interest revenues | 17,881 | 10,599 | 2,645 | (407) | 30,718 | ||||||||||||
Interest income | 4,809 | 3,468 | 22 | (382) | 7,917 | ||||||||||||
Interest expense | 3,184 | 653 | 33 | (395) | 3,475 | ||||||||||||
Net interest | 1,625 | 2,815 | (11) | 13 | 4,442 | ||||||||||||
Net revenues3 | $ | 19,506 | $ | 13,414 | $ | 2,634 | $ | (394) | $ | 35,160 | |||||||
Provision for credit losses3 | $ | 718 | $ | 39 | $ | — | $ | — | $ | 757 | |||||||
Compensation and benefits | 6,767 | 7,625 | 1,012 | — | 15,404 | ||||||||||||
Non-compensation expenses3 | 6,030 | 2,433 | 948 | (400) | 9,011 | ||||||||||||
Total non-interest expenses3 | $ | 12,797 | $ | 10,058 | $ | 1,960 | $ | (400) | $ | 24,415 | |||||||
Income before provision for income taxes | $ | 5,991 | $ | 3,317 | $ | 674 | $ | 6 | $ | 9,988 | |||||||
Provision for income taxes | 1,326 | 758 | 136 | 1 | 2,221 | ||||||||||||
Net income | 4,665 | 2,559 | 538 | 5 | 7,767 | ||||||||||||
Net income applicable to noncontrolling interests | 75 | — | 81 | — | 156 | ||||||||||||
Net income applicable to Morgan Stanley | $ | 4,590 | $ | 2,559 | $ | 457 | $ | 5 | $ | 7,611 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Institutional Securities Advisory | Institutional Securities Advisory | $ | 1,272 | $ | 357 | $ | 2,416 | $ | 1,181 | Institutional Securities Advisory | $ | 693 | $ | 1,272 | $ | 2,235 | $ | 2,416 | ||||||||||
Institutional Securities Underwriting | Institutional Securities Underwriting | 1,577 | 1,350 | 5,422 | 3,721 | Institutional Securities Underwriting | 584 | 1,577 | 1,748 | 5,422 | ||||||||||||||||||
Firm Investment banking revenues from contracts with customers | Firm Investment banking revenues from contracts with customers | 91 | % | 95 | % | 91 | % | 92 | % | Firm Investment banking revenues from contracts with customers | 89 | % | 91 | % | 89 | % | 91 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Interest rate | Interest rate | $ | (32) | $ | 511 | $ | 844 | $ | 2,593 | Interest rate | $ | 1,070 | $ | (32) | $ | 1,930 | $ | 844 | ||||||||||
Foreign exchange | Foreign exchange | 253 | 138 | 841 | 603 | Foreign exchange | 31 | 253 | 1,154 | 841 | ||||||||||||||||||
Equity security and index2 | 1,903 | 1,478 | 5,631 | 4,494 | ||||||||||||||||||||||||
Equity1 | Equity1 | 1,872 | 1,903 | 5,869 | 5,631 | |||||||||||||||||||||||
Commodity and other | Commodity and other | 538 | 553 | 2,079 | 1,286 | Commodity and other | 279 | 538 | 1,288 | 2,079 | ||||||||||||||||||
Credit | Credit | 199 | 470 | 1,021 | 1,778 | Credit | 79 | 199 | 670 | 1,021 | ||||||||||||||||||
Total | Total | $ | 2,861 | $ | 3,150 | $ | 10,416 | $ | 10,754 | Total | $ | 3,331 | $ | 2,861 | $ | 10,911 | $ | 10,416 |
(Unaudited) |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Net cumulative unrealized performance-based income at risk of reversing | $ | 774 | $ | 735 | ||||||||||||
Net cumulative unrealized performance-based fees at risk of reversing | Net cumulative unrealized performance-based fees at risk of reversing | $ | 837 | $ | 802 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Fee waivers | Fee waivers | $ | 139 | $ | 37 | $ | 364 | $ | 70 | Fee waivers | $ | 28 | $ | 139 | $ | 193 | $ | 364 |
September 2022 Form 10-Q | 68 |
Notes to Consolidated Financial Statements (Unaudited) |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Transaction taxes | Transaction taxes | $ | 262 | $ | 194 | $ | 717 | $ | 524 | Transaction taxes | $ | 215 | $ | 262 | $ | 701 | $ | 717 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Americas | $ | 11,255 | $ | 8,455 | $ | 33,331 | $ | 25,293 | ||||||
EMEA | 1,752 | 1,472 | 6,004 | 4,778 | ||||||||||
Asia | 1,746 | 1,794 | 5,896 | 5,089 | ||||||||||
Total | $ | 14,753 | $ | 11,721 | $ | 45,231 | $ | 35,160 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||
Americas | $ | 10,094 | $ | 11,255 | $ | 30,220 | $ | 33,331 | ||||||
EMEA | 1,392 | 1,752 | 5,381 | 6,004 | ||||||||||
Asia | 1,500 | 1,746 | 5,318 | 5,896 | ||||||||||
Total | $ | 12,986 | $ | 14,753 | $ | 40,919 | $ | 45,231 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in millions | $ in millions | 2021 | 2020 | 2021 | 2020 | $ in millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Non-interest revenues | Non-interest revenues | $ | 1,308 | $ | 556 | $ | 1,862 | $ | 1,616 | Non-interest revenues | $ | 788 | $ | 1,308 | $ | 2,036 | $ | 1,862 |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Customer and other receivables | Customer and other receivables | $ | 3,592 | $ | 3,200 | Customer and other receivables | $ | 2,483 | $ | 3,591 |
$ in millions | $ in millions | At September 30, 2021 | At December 31, 2020 | $ in millions | At September 30, 2022 | At December 31, 2021 | ||||||||||
Institutional Securities | Institutional Securities | $ | 808,252 | $ | 753,322 | Institutional Securities | $ | 786,384 | $ | 792,135 | ||||||
Wealth Management | Wealth Management | 364,634 | 355,595 | Wealth Management | 356,467 | 378,438 | ||||||||||
Investment Management | Investment Management | 17,590 | 6,945 | Investment Management | 17,178 | 17,567 | ||||||||||
Total1 | Total1 | $ | 1,190,476 | $ | 1,115,862 | Total1 | $ | 1,160,029 | $ | 1,188,140 |
69 | September |
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Average Daily Balance | Interest | Annualized Average Rate | Average Daily Balance | Interest | Annualized Average Rate | $ in millions | Average Daily Balance | Interest | Annualized Average Rate | Average Daily Balance | Interest | Annualized Average Rate | Interest earning assets | |||||||||||||||||||||||||
Investment securities1 | Investment securities1 | $ | 179,626 | $ | 643 | 1.4 | % | $ | 133,726 | $ | 529 | 1.6 | % | Investment securities1 | $ | 164,889 | $ | 743 | 1.8 | % | $ | 179,626 | $ | 643 | 1.4 | % | ||||||||||||||
Loans1 | Loans1 | 170,656 | 1,063 | 2.5 | % | 144,985 | 967 | 2.7 | % | Loans1 | 209,551 | 1,910 | 3.6 | % | 170,656 | 1,063 | 2.5 | % | ||||||||||||||||||||||
Securities purchased under agreements to resell and Securities borrowed2: | ||||||||||||||||||||||||||||||||||||||||
Securities purchased under agreements to resell2,3: | Securities purchased under agreements to resell2,3: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 154,122 | (177) | (0.5) | % | 123,614 | (99) | (0.3) | % | U.S. | 56,111 | 513 | 3.6 | % | 50,479 | 19 | 0.1 | % | ||||||||||||||||||||||
Non-U.S. | Non-U.S. | 71,266 | (105) | (0.6) | % | 58,567 | (88) | (0.6) | % | Non-U.S. | 61,118 | 151 | 1.0 | % | 51,850 | (55) | (0.4) | % | ||||||||||||||||||||||
Trading assets, net of Trading liabilities3: | ||||||||||||||||||||||||||||||||||||||||
Securities borrowed2,4: | Securities borrowed2,4: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 77,576 | 411 | 2.1 | % | 78,417 | 443 | 2.2 | % | U.S. | 126,061 | 373 | 1.2 | % | 103,643 | (196) | (0.8) | % | ||||||||||||||||||||||
Non-U.S. | Non-U.S. | 22,880 | 114 | 2.0 | % | 21,092 | 94 | 1.8 | % | Non-U.S. | 17,966 | 12 | 0.3 | % | 19,416 | (50) | (1.0) | % | ||||||||||||||||||||||
Customer receivables and Other4: | ||||||||||||||||||||||||||||||||||||||||
Trading assets, net of Trading liabilities5: | Trading assets, net of Trading liabilities5: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 74,651 | 535 | 2.8 | % | 77,576 | 411 | 2.1 | % | |||||||||||||||||||||||||||||||
Non-U.S. | Non-U.S. | 12,976 | 100 | 3.1 | % | 22,880 | 114 | 2.0 | % | |||||||||||||||||||||||||||||||
Customer receivables and Other6: | Customer receivables and Other6: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 137,525 | 358 | 1.0 | % | 81,908 | 171 | 0.8 | % | U.S. | 105,345 | 1,378 | 5.2 | % | 137,525 | 358 | 1.0 | % | ||||||||||||||||||||||
Non-U.S. | Non-U.S. | 73,130 | 44 | 0.2 | % | 63,657 | 39 | 0.2 | % | Non-U.S. | 76,056 | 386 | 2.0 | % | 73,130 | 44 | 0.2 | % | ||||||||||||||||||||||
Total | Total | $ | 886,781 | $ | 2,351 | 1.1 | % | $ | 705,966 | $ | 2,056 | 1.2 | % | Total | $ | 904,724 | $ | 6,101 | 2.7 | % | $ | 886,781 | $ | 2,351 | 1.1 | % | ||||||||||||||
Interest bearing liabilities | Interest bearing liabilities | Interest bearing liabilities | ||||||||||||||||||||||||||||||||||||||
Deposits1 | Deposits1 | $ | 325,520 | $ | 102 | 0.1 | % | $ | 236,119 | $ | 178 | 0.3 | % | Deposits1 | $ | 337,288 | $ | 476 | 0.6 | % | $ | 325,520 | $ | 102 | 0.1 | % | ||||||||||||||
Borrowings1, 5 | 227,880 | 597 | 1.0 | % | 205,166 | 714 | 1.4 | % | ||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase and Securities loaned6: | ||||||||||||||||||||||||||||||||||||||||
Borrowings1,7 | Borrowings1,7 | 229,821 | 1,370 | 2.4 | % | 227,880 | 597 | 1.0 | % | |||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase2,8,10: | Securities sold under agreements to repurchase2,8,10: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 34,755 | 52 | 0.6 | % | 30,154 | 81 | 1.1 | % | U.S. | 19,344 | 324 | 6.6 | % | 29,956 | 38 | 0.5 | % | ||||||||||||||||||||||
Non-U.S. | Non-U.S. | 35,219 | 79 | 0.9 | % | 28,320 | 84 | 1.2 | % | Non-U.S. | 40,110 | 177 | 1.8 | % | 29,027 | (19) | (0.3) | % | ||||||||||||||||||||||
Customer payables and Other7: | ||||||||||||||||||||||||||||||||||||||||
Securities loaned2,9,10: | Securities loaned2,9,10: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 7,103 | 20 | 1.1 | % | 4,799 | 14 | 1.2 | % | |||||||||||||||||||||||||||||||
Non-U.S. | Non-U.S. | 6,930 | 115 | 6.6 | % | 6,192 | 98 | 6.3 | % | |||||||||||||||||||||||||||||||
Customer payables and Other11: | Customer payables and Other11: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 129,298 | (431) | (1.3) | % | 119,846 | (399) | (1.3) | % | U.S. | 145,061 | 738 | 2.0 | % | 129,298 | (431) | (1.3) | % | ||||||||||||||||||||||
Non-U.S. | Non-U.S. | 76,248 | (111) | (0.6) | % | 64,524 | (88) | (0.5) | % | Non-U.S. | 72,328 | 371 | 2.0 | % | 76,248 | (111) | (0.6) | % | ||||||||||||||||||||||
Total | Total | $ | 828,920 | $ | 288 | 0.1 | % | $ | 684,129 | $ | 570 | 0.3 | % | Total | $ | 857,985 | $ | 3,591 | 1.7 | % | $ | 828,920 | $ | 288 | 0.1 | % | ||||||||||||||
Net interest income and net interest rate spread | Net interest income and net interest rate spread | $ | 2,063 | 1.0 | % | $ | 1,486 | 0.9 | % | Net interest income and net interest rate spread | $ | 2,510 | 1.0 | % | $ | 2,063 | 1.0 | % |
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Average Daily Balance | Interest | Annualized Average Rate | Average Daily Balance | Interest | Annualized Average Rate | $ in millions | Average Daily Balance | Interest | Annualized Average Rate | Average Daily Balance | Interest | Annualized Average Rate | ||||||||||||||||||||||||||
Interest earning assets | Interest earning assets | Interest earning assets | ||||||||||||||||||||||||||||||||||||||
Investment securities1 | Investment securities1 | $ | 182,804 | $ | 2,100 | 1.5 | % | $ | 122,613 | $ | 1,603 | 1.7 | % | Investment securities1 | $ | 169,926 | $ | 2,261 | 1.8 | % | $ | 182,804 | $ | 2,100 | 1.5 | % | ||||||||||||||
Loans1 | Loans1 | 161,422 | 3,091 | 2.6 | % | 142,261 | 3,171 | 3.0 | % | Loans1 | 201,655 | 4,469 | 3.0 | % | 161,422 | 3,091 | 2.6 | % | ||||||||||||||||||||||
Securities purchased under agreements to resell and Securities borrowed2: | ||||||||||||||||||||||||||||||||||||||||
Securities purchased under agreements to resell2,3: | Securities purchased under agreements to resell2,3: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 150,985 | (546) | (0.5) | % | 127,868 | 194 | 0.2 | % | U.S. | 56,451 | 719 | 1.7 | % | 55,248 | 64 | 0.2 | % | ||||||||||||||||||||||
Non-U.S. | Non-U.S. | 71,060 | (353) | (0.7) | % | 59,831 | (124) | (0.3) | % | Non-U.S. | 62,273 | 151 | 0.3 | % | 53,813 | (211) | (0.5) | % | ||||||||||||||||||||||
Trading assets, net of Trading liabilities3: | ||||||||||||||||||||||||||||||||||||||||
Securities borrowed2,4: | Securities borrowed2,4: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 76,456 | 1,230 | 2.2 | % | 76,418 | 1,558 | 2.7 | % | U.S. | 124,628 | 167 | 0.2 | % | 95,737 | (610) | (0.9) | % | ||||||||||||||||||||||
Non-U.S. | Non-U.S. | 19,103 | 291 | 2.0 | % | 22,570 | 344 | 2.0 | % | Non-U.S. | 19,819 | (70) | (0.5) | % | 17,247 | (142) | (1.1) | % | ||||||||||||||||||||||
Customer receivables and Other4: | ||||||||||||||||||||||||||||||||||||||||
Trading assets, net of Trading liabilities5: | Trading assets, net of Trading liabilities5: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 74,993 | 1,418 | 2.5 | % | 76,456 | 1,230 | 2.2 | % | |||||||||||||||||||||||||||||||
Non-U.S. | Non-U.S. | 14,668 | 304 | 2.8 | % | 19,103 | 291 | 2.0 | % | |||||||||||||||||||||||||||||||
Customer receivables and Other6: | Customer receivables and Other6: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 135,596 | 1,035 | 1.0 | % | 78,705 | 892 | 1.5 | % | U.S. | 116,515 | 2,396 | 2.7 | % | 135,596 | 1,035 | 1.0 | % | ||||||||||||||||||||||
Non-U.S. | Non-U.S. | 74,527 | 152 | 0.3 | % | 61,699 | 279 | 0.6 | % | Non-U.S. | 76,649 | 548 | 1.0 | % | 74,527 | 152 | 0.3 | % | ||||||||||||||||||||||
Total | Total | $ | 871,953 | $ | 7,000 | 1.1 | % | $ | 691,965 | $ | 7,917 | 1.5 | % | Total | $ | 917,577 | $ | 12,363 | 1.8 | % | $ | 871,953 | $ | 7,000 | 1.1 | % | ||||||||||||||
Interest bearing liabilities | Interest bearing liabilities | Interest bearing liabilities | ||||||||||||||||||||||||||||||||||||||
Deposits1 | Deposits1 | $ | 322,304 | $ | 330 | 0.1 | % | $ | 223,733 | $ | 804 | 0.5 | % | Deposits1 | $ | 340,166 | $ | 684 | 0.3 | % | $ | 322,304 | $ | 330 | 0.1 | % | ||||||||||||||
Borrowings1, 5 | 221,875 | 2,030 | 1.2 | % | 199,855 | 2,534 | 1.7 | % | ||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase and Securities loaned6: | ||||||||||||||||||||||||||||||||||||||||
Borrowings1,7 | Borrowings1,7 | 228,589 | 2,990 | 1.7 | % | 221,875 | 2,030 | 1.2 | % | |||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase2,8,10: | Securities sold under agreements to repurchase2,8,10: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 35,335 | 129 | 0.5 | % | 30,315 | 501 | 2.2 | % | U.S. | 20,957 | 487 | 3.1 | % | 30,559 | 122 | 0.5 | % | ||||||||||||||||||||||
Non-U.S. | Non-U.S. | 30,917 | 232 | 1.0 | % | 29,315 | 382 | 1.7 | % | Non-U.S. | 39,694 | 238 | 0.8 | % | 25,722 | (40) | (0.2) | % | ||||||||||||||||||||||
Customer payables and Other7: | ||||||||||||||||||||||||||||||||||||||||
Securities loaned2,9,10: | Securities loaned2,9,10: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 6,354 | 21 | 0.4 | % | 4,776 | 7 | 0.2 | % | |||||||||||||||||||||||||||||||
Non-U.S. | Non-U.S. | 7,308 | 319 | 5.8 | % | 5,195 | 272 | 7.0 | % | |||||||||||||||||||||||||||||||
Customer payables and Other11: | Customer payables and Other11: | |||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 129,883 | (1,349) | (1.4) | % | 123,662 | (693) | (0.7) | % | U.S. | 144,691 | 311 | 0.3 | % | 129,883 | (1,349) | (1.4) | % | ||||||||||||||||||||||
Non-U.S. | Non-U.S. | 73,415 | (328) | (0.6) | % | 64,608 | (53) | (0.1) | % | Non-U.S. | 75,510 | 305 | 0.5 | % | 73,415 | (328) | (0.6) | % | ||||||||||||||||||||||
Total | Total | $ | 813,729 | $ | 1,044 | 0.2 | % | $ | 671,488 | $ | 3,475 | 0.7 | % | Total | $ | 863,269 | $ | 5,355 | 0.8 | % | $ | 813,729 | $ | 1,044 | 0.2 | % | ||||||||||||||
Net interest income and net interest rate spread | Net interest income and net interest rate spread | $ | 5,956 | 0.9 | % | $ | 4,442 | 0.8 | % | Net interest income and net interest rate spread | $ | 7,008 | 1.0 | % | $ | 5,956 | 0.9 | % |
September | 70 |
Glossary of Common Terms and Acronyms |
Annual report on Form 10-K for year ended December 31, | |||||
ABS | Asset-backed securities | ||||
ACL | Allowance for credit losses | ||||
AFS | Available-for-sale | ||||
AML | Anti-money laundering | ||||
AOCI | Accumulated other comprehensive income (loss) | ||||
AUM | Assets under management or supervision | ||||
Balance | Consolidated balance | ||||
BHC | Bank holding company | ||||
bps | Basis points; one basis point equals 1/100th of 1% | ||||
Cash flow | Consolidated cash flow | ||||
CCAR | Comprehensive Capital Analysis and Review | ||||
CCyB | Countercyclical capital buffer | ||||
CDO | Collateralized debt obligation(s), including Collateralized loan obligation(s) | ||||
CDS | Credit default swaps | ||||
CECL | Current Expected Credit Losses, as calculated under the Financial Instruments—Credit Losses accounting update | ||||
CFTC | U.S. Commodity Futures Trading Commission | ||||
CLN | Credit-linked note(s) | ||||
CLO | Collateralized loan obligation(s) | ||||
CMBS | Commercial mortgage-backed securities | ||||
CMO | Collateralized mortgage obligation(s) | ||||
CRM | Credit Risk Management Department | ||||
DVA | Debt valuation adjustment | ||||
EBITDA | Earnings before interest, taxes, depreciation and amortization | ||||
EMEA | Europe, Middle East and Africa | ||||
EPS | Earnings per common share | ||||
FDIC | Federal Deposit Insurance Corporation | ||||
FFELP | Federal Family Education Loan Program | ||||
FHC | Financial | ||||
FICO | Fair Isaac Corporation | ||||
Financial statements | Consolidated financial statements | ||||
FVO | Fair value option | ||||
G-SIB | Global systemically important banks | ||||
HFI | Held-for-investment | ||||
HFS | Held-for-sale | ||||
HQLA | High-quality liquid assets | ||||
HTM | Held-to-maturity | ||||
I/E | Intersegment eliminations | ||||
IHC | Intermediate holding company | ||||
IM | Investment Management | ||||
Income | Consolidated income | ||||
IRS | Internal Revenue Service |
IS | Institutional Securities | ||||
LCR | Liquidity coverage ratio, as adopted by the U.S. banking agencies | ||||
LIBOR | London Interbank Offered Rate | ||||
LTV | Loan-to-value | ||||
M&A | Merger, acquisition and restructuring transaction | ||||
MSBNA | Morgan Stanley Bank, N.A. | ||||
MS&Co. | Morgan Stanley & Co. LLC | ||||
MSCG | Morgan Stanley Capital Group Inc. | ||||
MSCS | Morgan Stanley Capital Services LLC | ||||
MSESE | Morgan Stanley Europe SE | ||||
MSIP | Morgan Stanley & Co. International plc | ||||
MSMS | Morgan Stanley MUFG Securities Co., Ltd. | ||||
MSPBNA | Morgan Stanley Private Bank, National Association | ||||
MSSB | Morgan Stanley Smith Barney LLC | ||||
MUFG | Mitsubishi UFJ Financial Group, Inc. | ||||
MUMSS | Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. | ||||
MWh | Megawatt hour | ||||
N/A | Not Applicable | ||||
N/M | Not Meaningful | ||||
NAV | Net asset value | ||||
Non-GAAP | Non-generally accepted accounting principles | ||||
NSFR | Net stable funding ratio, as adopted by the U.S. banking agencies | ||||
OCC | Office of the Comptroller of the Currency | ||||
OCI | Other comprehensive income (loss) | ||||
OTC | Over-the-counter | ||||
PSU | Performance-based stock unit | ||||
ROE | Return on average common equity | ||||
ROTCE | Return on average tangible common equity | ||||
ROU | Right-of-use | ||||
RSU | Restricted stock unit | ||||
RWA | Risk-weighted assets | ||||
SCB | Stress capital buffer | ||||
SEC | U.S. Securities and Exchange Commission | ||||
SLR | Supplementary leverage ratio | ||||
SOFR | Secured Overnight Financing Rate | ||||
S&P | Standard & Poor’s | ||||
SPE | Special purpose entity | ||||
SPOE | Single point of entry | ||||
TDR | Troubled debt restructuring | ||||
TLAC | Total loss-absorbing capacity | ||||
U.K. | United Kingdom | ||||
UPB | Unpaid principal balance | ||||
U.S. | United States of America | ||||
U.S. GAAP | Accounting principles generally accepted in the United States of America | ||||
VaR | Value-at-Risk | ||||
VIE | Variable interest entity | ||||
WACC | Implied weighted average cost of capital | ||||
WM | Wealth Management |
71 | September |
$ in millions, except per share data | $ in millions, except per share data | Total Number of Shares Purchased1 | Average Price Paid per Share | Total Shares Purchased as Part of Share Repurchase Program2,3 | Dollar Value of Remaining Authorized Repurchase | $ in millions, except per share data | Total Number of Shares Purchased1 | Average Price Paid per Share | Total Shares Purchased as Part of Share Repurchase Authorization2,3 | Dollar Value of Remaining Authorized Repurchase | ||||||||||||||||||
July | July | 10,456,550 | $ | 93.94 | 10,284,648 | $ | 11,033 | July | 7,024,977 | $ | 81.08 | 6,966,721 | $ | 19,435 | ||||||||||||||
August | August | 14,721,794 | $ | 100.55 | 14,152,826 | $ | 9,608 | August | 14,511,783 | $ | 87.32 | 13,954,929 | $ | 18,215 | ||||||||||||||
September | September | 11,343,989 | $ | 102.79 | 11,328,590 | $ | 8,443 | September | 8,881,353 | $ | 86.91 | 8,860,100 | $ | 17,445 | ||||||||||||||
Three Months Ended September 30, 2021 | 36,522,333 | $ | 99.35 | 35,766,064 | ||||||||||||||||||||||||
Three Months Ended September 30, 2022 | Three Months Ended September 30, 2022 | 30,418,113 | $ | 85.76 | 29,781,750 |
September 2022 Form 10-Q | 72 |
Exhibit No. | Description | ||||
15 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101 | Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline eXtensible Business Reporting Language (“Inline XBRL”). | ||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). |
MORGAN STANLEY (Registrant) | |||||
By: | /s/ SHARON YESHAYA | ||||
Sharon Yeshaya Executive Vice President and Chief Financial Officer | |||||
By: | /s/ RAJA J. AKRAM | ||||
Raja J. Akram Deputy Chief Financial Officer, Chief Accounting Officer and Controller |
73 | September |