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 1/1,000th interest in a share of 4.875% | MS/PL | New York Stock Exchange | ||||||
Non-Cumulative Preferred Stock, Series L, $0.01 par value | ||||||||
Depositary Shares, each representing 1/1,000th interest in a share of 4.250% | 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 P, $0.01 par value | ||||||||
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 | |||||||||||||||||||||||||
Management’s Discussion and Analysis |
Management’s Discussion and Analysis |
6 |
Management’s Discussion and Analysis |
Management’s Discussion and Analysis |
8 |
Management’s Discussion and Analysis |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Consolidated results | Consolidated results | Consolidated results | ||||||||||||||||||||||||||
Net revenues | Net revenues | $ | 14,517 | $ | 14,801 | Net revenues | $ | 13,273 | $ | 12,986 | $ | 41,247 | $ | 40,919 | ||||||||||||||
Earnings applicable to Morgan Stanley common shareholders | Earnings applicable to Morgan Stanley common shareholders | $ | 2,836 | $ | 3,542 | Earnings applicable to Morgan Stanley common shareholders | $ | 2,262 | $ | 2,494 | $ | 7,147 | $ | 8,427 | ||||||||||||||
Earnings per diluted common share | Earnings per diluted common share | $ | 1.70 | $ | 2.02 | Earnings per diluted common share | $ | 1.38 | $ | 1.47 | $ | 4.33 | $ | 4.88 | ||||||||||||||
Consolidated financial measures | Consolidated financial measures | Consolidated financial measures | ||||||||||||||||||||||||||
Expense efficiency ratio1 | Expense efficiency ratio1 | 72 | % | 69 | % | Expense efficiency ratio1 | 75 | % | 74 | % | 75 | % | 72 | % | ||||||||||||||
ROE2 | ROE2 | 12.4 | % | 14.7 | % | ROE2 | 10.0 | % | 10.7 | % | 10.5 | % | 11.9 | % | ||||||||||||||
ROTCE2, 3 | ROTCE2, 3 | 16.9 | % | 19.8 | % | ROTCE2, 3 | 13.5 | % | 14.6 | % | 14.2 | % | 16.1 | % | ||||||||||||||
Pre-tax margin4 | Pre-tax margin4 | 26 | % | 31 | % | Pre-tax margin4 | 24 | % | 26 | % | 24 | % | 28 | % | ||||||||||||||
Effective tax rate | Effective tax rate | 19.3 | % | 19.0 | % | Effective tax rate | 22.6 | % | 21.4 | % | 20.9 | % | 21.1 | % | ||||||||||||||
Pre-tax margin by segment4 | Pre-tax margin by segment4 | Pre-tax margin by segment4 | ||||||||||||||||||||||||||
Institutional Securities | Institutional Securities | 28 | % | 36 | % | Institutional Securities | 21 | % | 28 | % | 22 | % | 30 | % | ||||||||||||||
Wealth Management | Wealth Management | 26 | % | 27 | % | Wealth Management | 27 | % | 27 | % | 26 | % | 27 | % | ||||||||||||||
Investment Management | Investment Management | 13 | % | 17 | % | Investment Management | 18 | % | 10 | % | 15 | % | 15 | % |
in millions, except per share and employee data | in millions, except per share and employee data | At March 31, 2023 | At December 31, 2022 | in millions, except per share and employee data | At September 30, 2023 | At December 31, 2022 | ||||||||||
Average liquidity resources for three months ended5 | Average liquidity resources for three months ended5 | $ | 321,195 | $ | 312,250 | Average liquidity resources for three months ended5 | $ | 307,367 | $ | 312,250 | ||||||
Loans6 | Loans6 | $ | 222,727 | $ | 222,182 | Loans6 | $ | 224,957 | $ | 222,182 | ||||||
Total assets | Total assets | $ | 1,199,904 | $ | 1,180,231 | Total assets | $ | 1,169,013 | $ | 1,180,231 | ||||||
Deposits | Deposits | $ | 347,523 | $ | 356,646 | Deposits | $ | 345,458 | $ | 356,646 | ||||||
Borrowings | Borrowings | $ | 250,182 | $ | 238,058 | Borrowings | $ | 247,193 | $ | 238,058 | ||||||
Common shareholders' equity | Common shareholders' equity | $ | 92,076 | $ | 91,391 | Common shareholders' equity | $ | 90,461 | $ | 91,391 | ||||||
Tangible common shareholders’ equity3 | Tangible common shareholders’ equity3 | $ | 67,951 | $ | 67,123 | Tangible common shareholders’ equity3 | $ | 66,561 | $ | 67,123 | ||||||
Common shares outstanding | Common shares outstanding | 1,670 | 1,675 | Common shares outstanding | 1,642 | 1,675 | ||||||||||
Book value per common share7 | Book value per common share7 | $ | 55.13 | $ | 54.55 | Book value per common share7 | $ | 55.08 | $ | 54.55 | ||||||
Tangible book value per common share3, 7 | Tangible book value per common share3, 7 | $ | 40.68 | $ | 40.06 | Tangible book value per common share3, 7 | $ | 40.53 | $ | 40.06 | ||||||
Worldwide employees (in thousands) | Worldwide employees (in thousands) | 82 | 82 | Worldwide employees (in thousands) | 81 | 82 | ||||||||||
Client assets8 (in billions) | Client assets8 (in billions) | $ | 5,920 | $ | 5,492 | Client assets8 (in billions) | $ | 6,186 | $ | 5,492 | ||||||
Capital Ratios9 | Capital Ratios9 | Capital Ratios9 | ||||||||||||||
Common Equity Tier 1 capital—Standardized | Common Equity Tier 1 capital—Standardized | 15.1 | % | 15.3 | % | Common Equity Tier 1 capital—Standardized | 15.6 | % | 15.3 | % | ||||||
Tier 1 capital—Standardized | Tier 1 capital—Standardized | 17.0 | % | 17.2 | % | Tier 1 capital—Standardized | 17.6 | % | 17.2 | % | ||||||
Common Equity Tier 1 capital—Advanced | Common Equity Tier 1 capital—Advanced | 15.6 | % | 15.6 | % | Common Equity Tier 1 capital—Advanced | 16.1 | % | 15.6 | % | ||||||
Tier 1 capital—Advanced | Tier 1 capital—Advanced | 17.5 | % | 17.6 | % | Tier 1 capital—Advanced | 18.2 | % | 17.6 | % | ||||||
Tier 1 leverage | Tier 1 leverage | 6.7 | % | 6.7 | % | Tier 1 leverage | 6.8 | % | 6.7 | % | ||||||
SLR | SLR | 5.5 | % | 5.5 | % | SLR | 5.5 | % | 5.5 | % |
Three Months Ended March 31, | ||||||||||||||
$ in millions, except per share data | 2023 | 2022 | ||||||||||||
Net revenues | $ | 14,517 | $ | 14,801 | ||||||||||
Adjustment for mark-to-market losses (gains) on certain employee deferred cash-based compensation plans1 | (153) | 441 | ||||||||||||
Adjusted Net revenues—non-GAAP | $ | 14,364 | $ | 15,242 | ||||||||||
Compensation expense | $ | 6,410 | $ | 6,274 | ||||||||||
Adjustment for mark-to-market gains (losses) on certain employee deferred cash-based compensation plans1 | (193) | 288 | ||||||||||||
Adjusted Compensation expense—non-GAAP | $ | 6,217 | $ | 6,562 | ||||||||||
Wealth Management Net revenues | $ | 6,559 | $ | 5,935 | ||||||||||
Adjustment for mark-to-market losses (gains) on certain employee deferred cash-based compensation plans1 | (101) | 296 | ||||||||||||
Adjusted Wealth Management Net revenues—non-GAAP | $ | 6,458 | $ | 6,231 | ||||||||||
Wealth Management Compensation expense | $ | 3,477 | $ | 3,125 | ||||||||||
Adjustment for mark-to-market gains (losses) on certain employee deferred cash-based compensation plans1 | (119) | 200 | ||||||||||||
Adjusted Wealth Management Compensation expense—non-GAAP | $ | 3,358 | $ | 3,325 | ||||||||||
$ in millions | At March 31, 2023 | At December 31, 2022 | ||||||
Tangible equity | ||||||||
Common shareholders’ equity | $ | 92,076 | $ | 91,391 | ||||
Less: Goodwill and net intangible assets | (24,125) | (24,268) | ||||||
Tangible common shareholders’ equity—non-GAAP | $ | 67,951 | $ | 67,123 |
Average Monthly Balance | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
$ in millions | 2023 | 2022 | ||||||||||||
Tangible equity | ||||||||||||||
Common shareholders’ equity | $ | 91,382 | $ | 96,667 | ||||||||||
Less: Goodwill and net intangible assets | (24,198) | (25,120) | ||||||||||||
Tangible common shareholders’ equity—non-GAAP | $ | 67,184 | $ | 71,547 |
March 31, | ||||||||||||||
Management’s Discussion and Analysis |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net revenues | $ | 13,273 | $ | 12,986 | $ | 41,247 | $ | 40,919 | ||||||
Adjustment for mark-to-market losses (gains) on DCP1 | 202 | 236 | (65) | 1,392 | ||||||||||
Adjusted Net revenues—non-GAAP | $ | 13,475 | $ | 13,222 | $ | 41,182 | $ | 42,311 | ||||||
Compensation expense | $ | 5,935 | $ | 5,614 | $ | 18,607 | $ | 17,438 | ||||||
Adjustment for mark-to-market gains (losses) on DCP1 | 57 | 119 | (314) | 905 | ||||||||||
Adjusted Compensation expense—non-GAAP | $ | 5,992 | $ | 5,733 | $ | 18,293 | $ | 18,343 | ||||||
Wealth Management Net revenues | $ | 6,404 | $ | 6,120 | $ | 19,623 | $ | 17,791 | ||||||
Adjustment for mark-to-market losses (gains) on DCP1 | 143 | 153 | (40) | 964 | ||||||||||
Adjusted Wealth Management Net revenues—non-GAAP | $ | 6,547 | $ | 6,273 | $ | 19,583 | $ | 18,755 | ||||||
Wealth Management Compensation expense | $ | 3,352 | $ | 3,171 | $ | 10,332 | $ | 9,191 | ||||||
Adjustment for mark-to-market gains (losses) on DCP1 | 48 | 86 | (178) | 645 | ||||||||||
Adjusted Wealth Management Compensation expense—non-GAAP | $ | 3,400 | $ | 3,257 | $ | 10,154 | $ | 9,836 |
$ in millions | At September 30, 2023 | At December 31, 2022 | ||||||
Tangible equity | ||||||||
Common shareholders’ equity | $ | 90,461 | $ | 91,391 | ||||
Less: Goodwill and net intangible assets | (23,900) | (24,268) | ||||||
Tangible common shareholders’ equity—non-GAAP | $ | 66,561 | $ | 67,123 |
Average Monthly Balance | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||
Tangible equity | ||||||||||||||
Common shareholders’ equity | $ | 90,788 | $ | 92,905 | $ | 91,142 | $ | 94,654 | ||||||
Less: Goodwill and net intangible assets | (23,965) | (24,715) | (24,074) | (24,921) | ||||||||||
Tangible common shareholders’ equity—non-GAAP | $ | 66,823 | $ | 68,190 | $ | 67,068 | $ | 69,733 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in billions | $ in billions | 2023 | 2022 | $ in billions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Average common equity2 | Average common equity2 | Average common equity2 | ||||||||||||||||||||||||||
Institutional Securities | Institutional Securities | $ | 45.6 | $ | 48.8 | Institutional Securities | $ | 45.6 | $ | 48.8 | $ | 45.6 | $ | 48.8 | ||||||||||||||
Wealth Management | Wealth Management | 28.8 | 31.0 | Wealth Management | 28.8 | 31.0 | 28.8 | 31.0 | ||||||||||||||||||||
Investment Management | Investment Management | 10.4 | 10.6 | Investment Management | 10.4 | 10.6 | 10.4 | 10.6 | ||||||||||||||||||||
ROE3 | ROE3 | ROE3 | ||||||||||||||||||||||||||
Institutional Securities | Institutional Securities | 12 | % | 17 | % | Institutional Securities | 7 | % | 10 | % | 8 | % | 12 | % | ||||||||||||||
Wealth Management | Wealth Management | 19 | % | 16 | % | Wealth Management | 18 | % | 16 | % | 18 | % | 16 | % | ||||||||||||||
Investment Management | Investment Management | 5 | % | 8 | % | Investment Management | 7 | % | 4 | % | 6 | % | 6 | % | ||||||||||||||
Average tangible common equity2 | Average tangible common equity2 | Average tangible common equity2 | ||||||||||||||||||||||||||
Institutional Securities | Institutional Securities | $ | 45.2 | $ | 48.3 | Institutional Securities | $ | 45.2 | $ | 48.3 | $ | 45.2 | $ | 48.3 | ||||||||||||||
Wealth Management | Wealth Management | 14.8 | 16.3 | Wealth Management | 14.8 | 16.3 | 14.8 | 16.3 | ||||||||||||||||||||
Investment Management | Investment Management | 0.7 | 0.8 | Investment Management | 0.7 | 0.8 | 0.7 | 0.8 | ||||||||||||||||||||
ROTCE3 | ROTCE3 | ROTCE3 | ||||||||||||||||||||||||||
Institutional Securities | Institutional Securities | 12 | % | 17 | % | Institutional Securities | 7 | % | 10 | % | 8 | % | 12 | % | ||||||||||||||
Wealth Management | Wealth Management | 36 | % | 30 | % | Wealth Management | 35 | % | 30 | % | 35 | % | 30 | % | ||||||||||||||
Investment Management | Investment Management | 73 | % | 106 | % | Investment Management | 98 | % | 56 | % | 80 | % | 87 | % |
Management’s Discussion and Analysis |
Three Months Ended September 30, | % Change | ||||||||||
$ in millions | 2023 | 2022 | |||||||||
Revenues | |||||||||||
Advisory | $ | 449 | $ | 693 | (35) | % | |||||
Equity | 237 | 218 | 9 | % | |||||||
Fixed income | 252 | 366 | (31) | % | |||||||
Total Underwriting | 489 | 584 | (16) | % | |||||||
Total Investment banking | 938 | 1,277 | (27) | % | |||||||
Equity | 2,507 | 2,459 | 2 | % | |||||||
Fixed income | 1,947 | 2,181 | (11) | % | |||||||
Other | 277 | (100) | N/M | ||||||||
Net revenues | $ | 5,669 | $ | 5,817 | (3) | % | |||||
Provision for credit losses | 93 | 24 | N/M | ||||||||
Compensation and benefits | 2,057 | 1,948 | 6 | % | |||||||
Non-compensation expenses | 2,320 | 2,219 | 5 | % | |||||||
Total non-interest expenses | 4,377 | 4,167 | 5 | % | |||||||
Income before provision for income taxes | 1,199 | 1,626 | (26) | % | |||||||
Provision for income taxes | 263 | 305 | (14) | % | |||||||
Net income | 936 | 1,321 | (29) | % | |||||||
Net income applicable to noncontrolling interests | 24 | 47 | (49) | % | |||||||
Net income applicable to Morgan Stanley | $ | 912 | $ | 1,274 | (28) | % |
Three Months Ended March 31, | % Change | Nine Months Ended September 30, | % Change | |||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | ||||||||||||||||
Revenues | Revenues | Revenues | ||||||||||||||||||||
Advisory | Advisory | $ | 638 | $ | 944 | (32) | % | Advisory | $ | 1,542 | $ | 2,235 | (31) | % | ||||||||
Equity | Equity | 202 | 258 | (22) | % | Equity | 664 | 624 | 6 | % | ||||||||||||
Fixed income | Fixed income | 407 | 432 | (6) | % | Fixed income | 1,054 | 1,124 | (6) | % | ||||||||||||
Total Underwriting | Total Underwriting | 609 | 690 | (12) | % | Total Underwriting | 1,718 | 1,748 | (2) | % | ||||||||||||
Total Investment banking | Total Investment banking | 1,247 | 1,634 | (24) | % | Total Investment banking | 3,260 | 3,983 | (18) | % | ||||||||||||
Equity | Equity | 2,729 | 3,174 | (14) | % | Equity | 7,784 | 8,593 | (9) | % | ||||||||||||
Fixed income | Fixed income | 2,576 | 2,923 | (12) | % | Fixed income | 6,239 | 7,604 | (18) | % | ||||||||||||
Other | Other | 245 | (74) | N/M | Other | 837 | (587) | N/M | ||||||||||||||
Net revenues | Net revenues | $ | 6,797 | $ | 7,657 | (11) | % | Net revenues | $ | 18,120 | $ | 19,593 | (8) | % | ||||||||
Provision for credit losses | Provision for credit losses | 189 | 44 | N/M | Provision for credit losses | 379 | 150 | 153 | % | |||||||||||||
Compensation and benefits | Compensation and benefits | 2,365 | 2,604 | (9) | % | Compensation and benefits | 6,637 | 6,602 | 1 | % | ||||||||||||
Non-compensation expenses | Non-compensation expenses | 2,351 | 2,222 | 6 | % | Non-compensation expenses | 7,036 | 6,874 | 2 | % | ||||||||||||
Total non-interest expenses | Total non-interest expenses | 4,716 | 4,826 | (2) | % | Total non-interest expenses | 13,673 | 13,476 | 1 | % | ||||||||||||
Income before provision for income taxes | Income before provision for income taxes | 1,892 | 2,787 | (32) | % | Income before provision for income taxes | 4,068 | 5,967 | (32) | % | ||||||||||||
Provision for income taxes | Provision for income taxes | 363 | 535 | (32) | % | Provision for income taxes | 802 | 1,235 | (35) | % | ||||||||||||
Net income | Net income | 1,529 | 2,252 | (32) | % | Net income | 3,266 | 4,732 | (31) | % | ||||||||||||
Net income applicable to noncontrolling interests | Net income applicable to noncontrolling interests | 51 | 61 | (16) | % | Net income applicable to noncontrolling interests | 117 | 146 | (20) | % | ||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | $ | 1,478 | $ | 2,191 | (33) | % | Net income applicable to Morgan Stanley | $ | 3,149 | $ | 4,586 | (31) | % |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in billions | $ in billions | 2023 | 2022 | $ in billions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Completed mergers and acquisitions1 | Completed mergers and acquisitions1 | $ | 129 | $ | 331 | Completed mergers and acquisitions1 | $ | 157 | $ | 149 | $ | 367 | $ | 631 | ||||||||||||||
Equity and equity-related offerings2, 3 | Equity and equity-related offerings2, 3 | 10 | 8 | Equity and equity-related offerings2, 3 | 6 | 5 | 26 | 16 | ||||||||||||||||||||
Fixed income offerings2, 4 | Fixed income offerings2, 4 | 63 | 81 | Fixed income offerings2, 4 | 47 | 53 | 184 | 187 |
11 |
Management’s Discussion and Analysis |
Three Months Ended September 30, 2023 | |||||||||||||||||
Net Interest2 | All Other3 | ||||||||||||||||
$ in millions | Trading | Fees1 | Total | ||||||||||||||
Financing | $ | 1,861 | $ | 130 | $ | (857) | $ | 26 | $ | 1,160 | |||||||
Execution services | 803 | 534 | (71) | 81 | 1,347 | ||||||||||||
Total Equity | $ | 2,664 | $ | 664 | $ | (928) | $ | 107 | $ | 2,507 | |||||||
Total Fixed Income | $ | 2,013 | $ | 90 | $ | (258) | $ | 102 | $ | 1,947 |
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 March 31, 2023 | Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||
Net Interest2 | All Other3 | Net Interest2 | All Other3 | |||||||||||||||||||||||||||||||
$ in millions | $ in millions | Trading | Fees1 | Total | $ in millions | Trading | Fees1 | Total | ||||||||||||||||||||||||||
Financing | Financing | $ | 1,696 | $ | 134 | $ | (541) | $ | 32 | $ | 1,321 | Financing | $ | 5,426 | $ | 394 | $ | (2,016) | $ | 64 | $ | 3,868 | ||||||||||||
Execution services | Execution services | 848 | 619 | (59) | — | 1,408 | Execution services | 2,308 | 1,695 | (175) | 88 | 3,916 | ||||||||||||||||||||||
Total Equity | Total Equity | $ | 2,544 | $ | 753 | $ | (600) | $ | 32 | $ | 2,729 | Total Equity | $ | 7,734 | $ | 2,089 | $ | (2,191) | $ | 152 | $ | 7,784 | ||||||||||||
Total Fixed Income | Total Fixed Income | $ | 2,478 | $ | 109 | $ | (89) | $ | 78 | $ | 2,576 | Total Fixed Income | $ | 6,428 | $ | 283 | $ | (821) | $ | 349 | $ | 6,239 |
Three Months Ended March 31, 2022 | Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||
Net Interest2 | All Other3 | Net Interest2 | All Other3 | |||||||||||||||||||||||||||||||
$ in millions | $ in millions | Trading | Fees1 | Total | $ in millions | Trading | Fees1 | Total | ||||||||||||||||||||||||||
Financing | Financing | $ | 1,251 | $ | 132 | $ | 87 | $ | 4 | $ | 1,474 | Financing | $ | 3,914 | $ | 404 | $ | 46 | $ | 7 | $ | 4,371 | ||||||||||||
Execution services | Execution services | 924 | 693 | (34) | 117 | 1,700 | Execution services | 2,371 | 1,887 | (22) | (14) | 4,222 | ||||||||||||||||||||||
Total Equity | Total Equity | $ | 2,175 | $ | 825 | $ | 53 | $ | 121 | $ | 3,174 | Total Equity | $ | 6,285 | $ | 2,291 | $ | 24 | $ | (7) | $ | 8,593 | ||||||||||||
Total Fixed Income | Total Fixed Income | $ | 2,258 | $ | 97 | $ | 508 | $ | 60 | $ | 2,923 | Total Fixed Income | $ | 6,263 | $ | 264 | $ | 1,046 | $ | 31 | $ | 7,604 |
Management’s Discussion and Analysis |
Management’s Discussion and Analysis |
Three Months Ended March 31, | % Change | Three Months Ended September 30, | % Change | |||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | ||||||||||||||||
Revenues | Revenues | Revenues | ||||||||||||||||||||
Asset management | Asset management | $ | 3,382 | $ | 3,626 | (7) | % | Asset management | $ | 3,629 | $ | 3,389 | 7 | % | ||||||||
Transactional1 | Transactional1 | 921 | 635 | 45 | % | Transactional1 | 678 | 616 | 10 | % | ||||||||||||
Net interest | Net interest | 2,158 | 1,540 | 40 | % | Net interest | 1,952 | 2,004 | (3) | % | ||||||||||||
Other1 | Other1 | 98 | 134 | (27) | % | Other1 | 145 | 111 | 31 | % | ||||||||||||
Net revenues | Net revenues | 6,559 | 5,935 | 11 | % | Net revenues | 6,404 | 6,120 | 5 | % | ||||||||||||
Provision for credit losses | Provision for credit losses | 45 | 13 | N/M | Provision for credit losses | 41 | 11 | N/M | ||||||||||||||
Compensation and benefits | Compensation and benefits | 3,477 | 3,125 | 11 | % | Compensation and benefits | 3,352 | 3,171 | 6 | % | ||||||||||||
Non-compensation expenses | Non-compensation expenses | 1,325 | 1,224 | 8 | % | Non-compensation expenses | 1,302 | 1,289 | 1 | % | ||||||||||||
Total non-interest expenses | Total non-interest expenses | 4,802 | 4,349 | 10 | % | Total non-interest expenses | 4,654 | 4,460 | 4 | % | ||||||||||||
Income before provision for income taxes | Income before provision for income taxes | $ | 1,712 | $ | 1,573 | 9 | % | Income before provision for income taxes | $ | 1,709 | $ | 1,649 | 4 | % | ||||||||
Provision for income taxes | Provision for income taxes | 336 | 301 | 12 | % | Provision for income taxes | 389 | 396 | (2) | % | ||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | $ | 1,376 | $ | 1,272 | 8 | % | Net income applicable to Morgan Stanley | $ | 1,320 | $ | 1,253 | 5 | % |
Nine Months Ended September 30, | % Change | ||||||||||
$ in millions | 2023 | 2022 | |||||||||
Revenues | |||||||||||
Asset management | $ | 10,463 | $ | 10,525 | (1) | % | |||||
Transactional1 | 2,468 | 1,542 | 60 | % | |||||||
Net interest | 6,266 | 5,291 | 18 | % | |||||||
Other1 | 426 | 433 | (2) | % | |||||||
Net revenues | 19,623 | 17,791 | 10 | % | |||||||
Provision for credit losses | 150 | 43 | N/M | ||||||||
Compensation and benefits | 10,332 | 9,191 | 12 | % | |||||||
Non-compensation expenses | 4,039 | 3,814 | 6 | % | |||||||
Total non-interest expenses | 14,371 | 13,005 | 11 | % | |||||||
Income before provision for income taxes | $ | 5,102 | $ | 4,743 | 8 | % | |||||
Provision for income taxes | 1,098 | 1,028 | 7 | % | |||||||
Net income applicable to Morgan Stanley | $ | 4,004 | $ | 3,715 | 8 | % |
$ in billions | $ in billions | At March 31, 2023 | At December 31, 2022 | $ in billions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Total client assets1 | Total client assets1 | $ | 4,558 | $ | 4,187 | Total client assets1 | $ | 4,798 | $ | 4,187 | ||||||
U.S. Bank Subsidiary loans | U.S. Bank Subsidiary loans | $ | 144 | $ | 146 | U.S. Bank Subsidiary loans | $ | 146 | $ | 146 | ||||||
Margin and other lending2 | Margin and other lending2 | $ | 21 | $ | 22 | Margin and other lending2 | $ | 23 | $ | 22 | ||||||
Deposits3 | Deposits3 | $ | 341 | $ | 351 | Deposits3 | $ | 340 | $ | 351 | ||||||
Annualized weighted average cost of deposits4 | Annualized weighted average cost of deposits4 | Annualized weighted average cost of deposits4 | ||||||||||||||
Period end | Period end | 2.05% | 1.59% | Period end | 2.86% | 1.59% | ||||||||||
Period average for three months ended | Period average for three months ended | 1.86% | 1.32% | Period average for three months ended | 2.69% | 1.32% |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Net new assets5 | $ | 109.6 | $ | 142.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Net new assets5 | $ | 35.7 | $ | 64.8 | $ | 234.8 | $ | 259.7 |
$ in billions | $ in billions | At March 31, 2023 | At December 31, 2022 | $ in billions | At September 30, 2023 | At December 31, 2022 | ||||||||||||||||
Advisor-led client assets1 | Advisor-led client assets1 | $ | 3,582 | $ | 3,392 | Advisor-led client assets1 | $ | 3,755 | $ | 3,392 | ||||||||||||
Fee-based client assets2 | Fee-based client assets2 | $ | 1,769 | $ | 1,678 | Fee-based client assets2 | $ | 1,857 | $ | 1,678 | ||||||||||||
Fee-based client assets as a percentage of advisor-led client assets | Fee-based client assets as a percentage of advisor-led client assets | 49% | 49% | Fee-based client assets as a percentage of advisor-led client assets | 49% | 49% |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Fee-based asset flows3 | $ | 22.4 | $ | 97.2 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Fee-based asset flows3 | $ | 22.5 | $ | 16.7 | $ | 67.6 | $ | 142.4 |
14 |
Management’s Discussion and Analysis |
$ in billions | $ in billions | At March 31, 2023 | At December 31, 2022 | $ in billions | At September 30, 2023 | At December 31, 2022 | ||||||||||||||||
Self-directed assets1 | $ | 976 | $ | 795 | ||||||||||||||||||
Self-directed client assets1 | Self-directed client assets1 | $ | 1,043 | $ | 795 | |||||||||||||||||
Self-directed households (in millions)2 | Self-directed households (in millions)2 | 8.1 | 8.0 | Self-directed households (in millions)2 | 8.1 | 8.0 |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Daily average revenue trades (“DARTs”) (in thousands)3 | 831 | 1,016 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Daily average revenue trades (“DARTs”) (in thousands)3 | 735 | 805 | 777 | 900 |
$ in billions | $ in billions | At March 31, 2023 | At December 31, 2022 | $ in billions | At September 30, 2023 | At December 31, 2022 | ||||||||||||||||
Stock plan unvested assets2 | Stock plan unvested assets2 | $ | 358 | $ | 302 | Stock plan unvested assets2 | $ | 377 | $ | 302 | ||||||||||||
Stock plan participants (in millions)3 | Stock plan participants (in millions)3 | 6.5 | 6.3 | Stock plan participants (in millions)3 | 6.6 | 6.3 |
15 |
Management’s Discussion and Analysis |
$ in billions | At June 30, 2023 | Inflows | Outflows | Market Impact | At September 30, 2023 | |||||||||||||||
Separately managed1 | $ | 556 | $ | 15 | $ | (7) | $ | 14 | $ | 578 | ||||||||||
Unified managed | 456 | 29 | (19) | (17) | 449 | |||||||||||||||
Advisor | 182 | 7 | (9) | (5) | 175 | |||||||||||||||
Portfolio manager | 607 | 27 | (21) | (16) | 597 | |||||||||||||||
Subtotal | $ | 1,801 | $ | 78 | $ | (56) | $ | (24) | $ | 1,799 | ||||||||||
Cash management | 55 | 16 | (13) | — | 58 | |||||||||||||||
Total fee-based client assets | $ | 1,856 | $ | 94 | $ | (69) | $ | (24) | $ | 1,857 |
$ in billions | At June 30, 2022 | Inflows | Outflows | Market Impact | At September 30, 2022 | ||||||||||||
Separately managed1 | $ | 556 | $ | 14 | $ | (6) | $ | (53) | $ | 511 | |||||||
Unified managed | 396 | 18 | (12) | (23) | 379 | ||||||||||||
Advisor | 172 | 7 | (9) | (7) | 163 | ||||||||||||
Portfolio manager | 546 | 22 | (18) | (24) | 526 | ||||||||||||
Subtotal | $ | 1,670 | $ | 61 | $ | (45) | $ | (107) | $ | 1,579 | |||||||
Cash management | 47 | 10 | (8) | — | 49 | ||||||||||||
Total fee-based client assets | $ | 1,717 | $ | 71 | $ | (53) | $ | (107) | $ | 1,628 |
$ in billions | $ in billions | At December 31, 2022 | Inflows | Outflows | Market Impact | At March 31, 2023 | $ in billions | At December 31, 2022 | Inflows | Outflows | Market Impact | At September 30, 2023 | ||||||||||||||||||||||||||||
Separately managed1 | Separately managed1 | $ | 501 | $ | 16 | $ | (7) | $ | 18 | $ | 528 | Separately managed1 | $ | 501 | $ | 40 | $ | (18) | $ | 55 | $ | 578 | ||||||||||||||||||
Unified managed | Unified managed | 408 | 21 | (14) | 17 | 432 | Unified managed | 408 | 70 | (43) | 14 | 449 | ||||||||||||||||||||||||||||
Advisor | Advisor | 167 | 9 | (9) | 9 | 176 | Advisor | 167 | 22 | (25) | 11 | 175 | ||||||||||||||||||||||||||||
Portfolio manager | Portfolio manager | 552 | 26 | (20) | 20 | 578 | Portfolio manager | 552 | 74 | (53) | 24 | 597 | ||||||||||||||||||||||||||||
Subtotal | Subtotal | $ | 1,628 | $ | 72 | $ | (50) | $ | 64 | $ | 1,714 | Subtotal | $ | 1,628 | $ | 206 | $ | (139) | $ | 104 | $ | 1,799 | ||||||||||||||||||
Cash management | Cash management | 50 | 20 | (15) | — | 55 | Cash management | 50 | 48 | (40) | — | 58 | ||||||||||||||||||||||||||||
Total fee-based client assets | Total fee-based client assets | $ | 1,678 | $ | 92 | $ | (65) | $ | 64 | $ | 1,769 | Total fee-based client assets | $ | 1,678 | $ | 254 | $ | (179) | $ | 104 | $ | 1,857 |
$ in billions | $ in billions | At December 31, 2021 | Inflows2 | Outflows | Market Impact | At March 31, 2022 | $ in billions | At December 31, 2021 | Inflows2 | Outflows | Market Impact | At September 30, 2022 | ||||||||||||||||||||||
Separately managed1 | Separately managed1 | $ | 479 | $ | 87 | $ | (8) | $ | 7 | $ | 565 | Separately managed1 | $ | 479 | $ | 126 | $ | (19) | $ | (75) | $ | 511 | ||||||||||||
Unified managed | Unified managed | 467 | 25 | (14) | (31) | 447 | Unified managed | 467 | 58 | (37) | (109) | 379 | ||||||||||||||||||||||
Advisor | Advisor | 211 | 9 | (11) | (10) | 199 | Advisor | 211 | 22 | (27) | (43) | 163 | ||||||||||||||||||||||
Portfolio manager | Portfolio manager | 636 | 30 | (21) | (30) | 615 | Portfolio manager | 636 | 71 | (52) | (129) | 526 | ||||||||||||||||||||||
Subtotal | Subtotal | $ | 1,793 | $ | 151 | $ | (54) | $ | (64) | $ | 1,826 | Subtotal | $ | 1,793 | $ | 277 | $ | (135) | $ | (356) | $ | 1,579 | ||||||||||||
Cash management | Cash management | 46 | 9 | (8) | — | 47 | Cash management | 46 | 28 | (25) | — | 49 | ||||||||||||||||||||||
Total fee-based client assets | Total fee-based client assets | $ | 1,839 | $ | 160 | $ | (62) | $ | (64) | $ | 1,873 | Total fee-based client assets | $ | 1,839 | $ | 305 | $ | (160) | $ | (356) | $ | 1,628 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
Fee rate in bps | Fee rate in bps | 2023 | 2022 | Fee rate in bps | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Separately managed | Separately managed | 13 | 13 | Separately managed | 12 | 11 | 13 | 12 | ||||||||||||||||||||
Unified managed | Unified managed | 93 | 94 | Unified managed | 92 | 94 | 92 | 94 | ||||||||||||||||||||
Advisor | Advisor | 80 | 81 | Advisor | 79 | 80 | 80 | 81 | ||||||||||||||||||||
Portfolio manager | Portfolio manager | 91 | 92 | Portfolio manager | 90 | 91 | 91 | 92 | ||||||||||||||||||||
Subtotal | Subtotal | 66 | 68 | Subtotal | 65 | 65 | 66 | 66 | ||||||||||||||||||||
Cash management | Cash management | 6 | 6 | Cash management | 6 | 6 | 6 | 6 | ||||||||||||||||||||
Total fee-based client assets | Total fee-based client assets | 65 | 67 | Total fee-based client assets | 64 | 63 | 64 | 65 |
Management’s Discussion and Analysis |
Three Months Ended September 30, | % Change | ||||||||||||||||
$ in millions | 2023 | 2022 | |||||||||||||||
Revenues | |||||||||||||||||
Asset management and related fees | $ | 1,312 | $ | 1,269 | 3 | % | |||||||||||
Performance-based income and other1 | 24 | (101) | 124 | % | |||||||||||||
Net revenues | 1,336 | 1,168 | 14 | % | |||||||||||||
Compensation and benefits | 526 | 495 | 6 | % | |||||||||||||
Non-compensation expenses | 569 | 557 | 2 | % | |||||||||||||
Total non-interest expenses | 1,095 | 1,052 | 4 | % | |||||||||||||
Income before provision for income taxes | 241 | 116 | 108 | % | |||||||||||||
Provision for income taxes | 59 | 26 | 127 | % | |||||||||||||
Net income | 182 | 90 | 102 | % | |||||||||||||
Net income (loss) applicable to noncontrolling interests | 3 | (17) | 118 | % | |||||||||||||
Net income applicable to Morgan Stanley | $ | 179 | $ | 107 | 67 | % |
Three Months Ended March 31, | % Change | Nine Months Ended September 30, | % Change | |||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | ||||||||||||||||
Revenues | Revenues | Revenues | ||||||||||||||||||||
Asset management and related fees | Asset management and related fees | $ | 1,248 | $ | 1,388 | (10) | % | Asset management and related fees | $ | 3,828 | $ | 3,961 | (3) | % | ||||||||
Performance-based income and other1 | Performance-based income and other1 | 41 | (53) | 177 | % | Performance-based income and other1 | 78 | (47) | N/M | |||||||||||||
Net revenues | Net revenues | 1,289 | 1,335 | (3) | % | Net revenues | 3,906 | 3,914 | — | % | ||||||||||||
Compensation and benefits | Compensation and benefits | 568 | 545 | 4 | % | Compensation and benefits | 1,638 | 1,645 | — | % | ||||||||||||
Non-compensation expenses | Non-compensation expenses | 555 | 562 | (1) | % | Non-compensation expenses | 1,691 | 1,676 | 1 | % | ||||||||||||
Total non-interest expenses | Total non-interest expenses | 1,123 | 1,107 | 1 | % | Total non-interest expenses | 3,329 | 3,321 | — | % | ||||||||||||
Income before provision for income taxes | Income before provision for income taxes | 166 | 228 | (27) | % | Income before provision for income taxes | 577 | 593 | (3) | % | ||||||||||||
Provision for income taxes | Provision for income taxes | 30 | 37 | (19) | % | Provision for income taxes | 135 | 121 | 12 | % | ||||||||||||
Net income | Net income | 136 | 191 | (29) | % | Net income | 442 | 472 | (6) | % | ||||||||||||
Net income (loss) applicable to noncontrolling interests | Net income (loss) applicable to noncontrolling interests | 2 | (12) | 117 | % | Net income (loss) applicable to noncontrolling interests | 2 | (26) | 108 | % | ||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | $ | 134 | $ | 203 | (34) | % | Net income applicable to Morgan Stanley | $ | 440 | $ | 498 | (12) | % |
17 |
Management’s Discussion and Analysis | ||||||||||||||||||||
$ in billions | Equity | Fixed Income | Alternatives and Solutions | Long-Term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||
December 31, 2022 | $ | 259 | $ | 173 | $ | 431 | $ | 863 | $ | 442 | $ | 1,305 | ||||||||
Inflows | 10 | 16 | 18 | 44 | 585 | 629 | ||||||||||||||
Outflows | (12) | (17) | (16) | (45) | (568) | (613) | ||||||||||||||
Market Impact | 21 | 4 | 15 | 40 | 6 | 46 | ||||||||||||||
Other | (1) | (1) | — | (2) | (3) | (5) | ||||||||||||||
March 31, 2023 | $ | 277 | $ | 175 | $ | 448 | $ | 900 | $ | 462 | $ | 1,362 |
$ in billions | Equity | Fixed Income | Alternatives and Solutions | Long-Term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||
December 31, 2021 | $ | 395 | $ | 207 | $ | 466 | $ | 1,068 | $ | 497 | $ | 1,565 | ||||||||
Inflows | 19 | 19 | 27 | 65 | 494 | 559 | ||||||||||||||
Outflows | (26) | (22) | (29) | (77) | (523) | (600) | ||||||||||||||
Market Impact | (48) | (7) | (14) | (69) | (2) | (71) | ||||||||||||||
Other | (3) | (2) | (1) | (6) | — | (6) | ||||||||||||||
March 31, 2022 | $ | 337 | $ | 195 | $ | 449 | $ | 981 | $ | 466 | $ | 1,447 |
$ in billions | Equity | Fixed Income | Alternatives and Solutions | Long-Term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||
June 30, 2023 | $ | 289 | $ | 165 | $ | 482 | $ | 936 | $ | 476 | $ | 1,412 | ||||||||
Inflows | 9 | 14 | 31 | 54 | 553 | 607 | ||||||||||||||
Outflows | (15) | (15) | (29) | (59) | (543) | (602) | ||||||||||||||
Market Impact | (11) | (1) | (10) | (22) | — | (22) | ||||||||||||||
Other | — | — | (2) | (2) | (5) | (7) | ||||||||||||||
September 30, 2023 | $ | 272 | $ | 163 | $ | 472 | $ | 907 | $ | 481 | $ | 1,388 |
$ 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 | Equity | Fixed Income1 | Alternatives and Solutions1 | Long-Term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||
December 31, 2022 | $ | 259 | $ | 173 | $ | 431 | $ | 863 | $ | 442 | $ | 1,305 | ||||||||
Inflows | 29 | 42 | 79 | 150 | 1,713 | 1,863 | ||||||||||||||
Outflows | (42) | (48) | (63) | (153) | (1,673) | (1,826) | ||||||||||||||
Market Impact | 30 | 4 | 22 | 56 | 10 | 66 | ||||||||||||||
Other1 | (4) | (8) | 3 | (9) | (11) | (20) | ||||||||||||||
September 30, 2023 | $ | 272 | $ | 163 | $ | 472 | $ | 907 | $ | 481 | $ | 1,388 |
$ in billions | Equity | Fixed Income | Alternatives and Solutions | Long-Term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||
December 31, 2021 | $ | 395 | $ | 207 | $ | 466 | $ | 1,068 | $ | 497 | $ | 1,565 | ||||||||
Inflows | 42 | 50 | 74 | 166 | 1,675 | 1,841 | ||||||||||||||
Outflows | (60) | (59) | (60) | (179) | (1,702) | (1,881) | ||||||||||||||
Market Impact | (117) | (19) | (67) | (203) | (11) | (214) | ||||||||||||||
Other | (11) | (8) | (8) | (27) | (5) | (32) | ||||||||||||||
September 30, 2022 | $ | 249 | $ | 171 | $ | 405 | $ | 825 | $ | 454 | $ | 1,279 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in billions | $ in billions | 2023 | 2022 | $ in billions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Equity | Equity | $ | 271 | $ | 355 | Equity | $ | 287 | $ | 269 | $ | 278 | $ | 308 | ||||||||||||||
Fixed income | Fixed income | 175 | 201 | Fixed income | 166 | 179 | 171 | 190 | ||||||||||||||||||||
Alternatives and Solutions | Alternatives and Solutions | 441 | 454 | Alternatives and Solutions | 482 | 420 | 460 | 436 | ||||||||||||||||||||
Long-term AUM subtotal | Long-term AUM subtotal | 887 | 1010 | Long-term AUM subtotal | 935 | 868 | 909 | 934 | ||||||||||||||||||||
Liquidity and Overlay Services | Liquidity and Overlay Services | 442 | 476 | Liquidity and Overlay Services | 478 | 466 | 461 | 469 | ||||||||||||||||||||
Total AUM | Total AUM | $ | 1,329 | $ | 1,486 | Total AUM | $ | 1,413 | $ | 1,334 | $ | 1,370 | $ | 1,403 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
Fee rate in bps | Fee rate in bps | 2023 | 2022 | Fee rate in bps | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
Equity | Equity | 72 | 70 | Equity | 72 | 71 | 72 | 70 | ||||||||||||||||||||||||||
Fixed income | Fixed income | 35 | 36 | Fixed income | 36 | 34 | 35 | 36 | ||||||||||||||||||||||||||
Alternatives and Solutions | Alternatives and Solutions | 33 | 35 | Alternatives and Solutions | 30 | 34 | 32 | 34 | ||||||||||||||||||||||||||
Long-term AUM | Long-term AUM | 45 | 48 | Long-term AUM | 44 | 46 | 45 | 46 | ||||||||||||||||||||||||||
Liquidity and Overlay Services | Liquidity and Overlay Services | 13 | 7 | Liquidity and Overlay Services | 12 | 13 | 13 | 11 | ||||||||||||||||||||||||||
Total AUM | Total AUM | 35 | 35 | Total AUM | 33 | 34 | 34 | 35 |
Management’s Discussion and Analysis |
$ in billions | $ in billions | At March 31, 2023 | At December 31, 2022 | $ in billions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Investment securities portfolio: | Investment securities portfolio: | Investment securities portfolio: | ||||||||||||||
Investment securities—AFS | Investment securities—AFS | $ | 67.6 | $ | 66.9 | Investment securities—AFS | $ | 60.8 | $ | 66.9 | ||||||
Investment securities—HTM | Investment securities—HTM | 55.7 | 56.4 | Investment securities—HTM | 54.0 | 56.4 | ||||||||||
Total investment securities | Total investment securities | $ | 123.3 | $ | 123.3 | Total investment securities | $ | 114.8 | $ | 123.3 | ||||||
Wealth Management Loans2 | Wealth Management Loans2 | Wealth Management Loans2 | ||||||||||||||
Residential real estate | Residential real estate | $ | 55.3 | $ | 54.4 | Residential real estate | $ | 58.9 | $ | 54.4 | ||||||
Securities-based lending and Other3 | Securities-based lending and Other3 | 88.4 | 91.7 | Securities-based lending and Other3 | 86.9 | 91.7 | ||||||||||
Total, net of ACL | Total, net of ACL | $ | 143.7 | $ | 146.1 | Total, net of ACL | $ | 145.8 | $ | 146.1 | ||||||
Institutional Securities Loans2 | Institutional Securities Loans2 | Institutional Securities Loans2 | ||||||||||||||
Corporate | Corporate | $ | 8.3 | $ | 6.9 | Corporate | $ | 8.8 | $ | 6.9 | ||||||
Secured lending facilities | Secured lending facilities | 38.3 | 37.1 | Secured lending facilities | 39.6 | 37.1 | ||||||||||
Commercial and Residential real estate | Commercial and Residential real estate | 10.5 | 10.2 | Commercial and Residential real estate | 10.8 | 10.2 | ||||||||||
Securities-based lending and Other | Securities-based lending and Other | 6.0 | 6.0 | Securities-based lending and Other | 4.1 | 6.0 | ||||||||||
Total, net of ACL | Total, net of ACL | $ | 63.1 | $ | 60.2 | Total, net of ACL | $ | 63.3 | $ | 60.2 | ||||||
Total Assets | Total Assets | $ | 384.8 | $ | 391.0 | Total Assets | $ | 388.1 | $ | 391.0 | ||||||
Deposits4 | Deposits4 | $ | 340.9 | $ | 350.6 | Deposits4 | $ | 339.9 | $ | 350.6 |
Management’s Discussion and Analysis |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||
$ 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 | $ | 84,356 | $ | 26,747 | $ | 155 | $ | 111,258 | Cash and cash equivalents | $ | 75,646 | $ | 32,573 | $ | 182 | $ | 108,401 | ||||||||||
Trading assets at fair value | Trading assets at fair value | 310,842 | 4,560 | 4,899 | 320,301 | Trading assets at fair value | 335,146 | 6,691 | 4,848 | 346,685 | ||||||||||||||||||
Investment securities | Investment securities | 37,386 | 120,558 | — | 157,944 | Investment securities | 34,242 | 112,724 | — | 146,966 | ||||||||||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | 108,722 | 13,163 | — | 121,885 | Securities purchased under agreements to resell | 96,979 | 4,590 | — | 101,569 | ||||||||||||||||||
Securities borrowed | Securities borrowed | 145,289 | 927 | — | 146,216 | Securities borrowed | 119,887 | 1,029 | — | 120,916 | ||||||||||||||||||
Customer and other receivables | Customer and other receivables | 43,973 | 28,907 | 1,215 | 74,095 | Customer and other receivables | 43,317 | 31,916 | 1,262 | 76,495 | ||||||||||||||||||
Loans1 | Loans1 | 71,008 | 143,684 | 4 | 214,696 | Loans1 | 71,089 | 145,879 | 4 | 216,972 | ||||||||||||||||||
Other assets2 | Other assets2 | 17,619 | 24,859 | 11,031 | 53,509 | Other assets2 | 13,874 | 26,088 | 11,047 | 51,009 | ||||||||||||||||||
Total assets | Total assets | $ | 819,195 | $ | 363,405 | $ | 17,304 | $ | 1,199,904 | Total assets | $ | 790,180 | $ | 361,490 | $ | 17,343 | $ | 1,169,013 |
At December 31, 2022 | ||||||||||||||
$ in millions | IS | WM | IM | Total | ||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 88,362 | $ | 39,539 | $ | 226 | $ | 128,127 | ||||||
Trading assets at fair value | 294,884 | 1,971 | 4,460 | 301,315 | ||||||||||
Investment securities | 40,481 | 119,450 | — | 159,931 | ||||||||||
Securities purchased under agreements to resell | 102,511 | 11,396 | — | 113,907 | ||||||||||
Securities borrowed | 132,619 | 755 | — | 133,374 | ||||||||||
Customer and other receivables | 47,515 | 29,620 | 1,405 | 78,540 | ||||||||||
Loans1 | 67,676 | 146,105 | 4 | 213,785 | ||||||||||
Other assets2 | 15,789 | 24,469 | 10,994 | 51,252 | ||||||||||
Total assets | $ | 789,837 | $ | 373,305 | $ | 17,089 | $ | 1,180,231 |
Average Daily Balance Three Months Ended | Average Daily Balance Three Months Ended | |||||||||||||||
$ in millions | $ in millions | March 31, 2023 | December 31, 2022 | $ in millions | September 30, 2023 | June 30, 2023 | ||||||||||
Cash deposits with central banks | Cash deposits with central banks | $ | 65,677 | $ | 58,818 | Cash deposits with central banks | $ | 66,330 | $ | 60,876 | ||||||
Unencumbered HQLA Securities1: | Unencumbered HQLA Securities1: | Unencumbered HQLA Securities1: | ||||||||||||||
U.S. government obligations | U.S. government obligations | 132,225 | 136,020 | U.S. government obligations | 122,110 | 124,357 | ||||||||||
U.S. agency and agency mortgage-backed securities | U.S. agency and agency mortgage-backed securities | 92,219 | 87,591 | U.S. agency and agency mortgage-backed securities | 86,628 | 94,367 | ||||||||||
Non-U.S. sovereign obligations2 | Non-U.S. sovereign obligations2 | 21,113 | 20,583 | Non-U.S. sovereign obligations2 | 23,416 | 21,393 | ||||||||||
Other investment grade securities | Other investment grade securities | 694 | 694 | Other investment grade securities | 693 | 715 | ||||||||||
Total HQLA1 | Total HQLA1 | $ | 311,928 | $ | 303,706 | Total HQLA1 | $ | 299,177 | $ | 301,708 | ||||||
Cash deposits with banks (non-HQLA) | Cash deposits with banks (non-HQLA) | 9,267 | 8,544 | Cash deposits with banks (non-HQLA) | 8,190 | 9,016 | ||||||||||
Total Liquidity Resources | Total Liquidity Resources | $ | 321,195 | $ | 312,250 | Total Liquidity Resources | $ | 307,367 | $ | 310,724 |
Management’s Discussion and Analysis |
Average Daily Balance Three Months Ended | Average Daily Balance Three Months Ended | |||||||||||||||
$ in millions | $ in millions | March 31, 2023 | December 31, 2022 | $ in millions | September 30, 2023 | June 30, 2023 | ||||||||||
Bank legal entities | Bank legal entities | Bank legal entities | ||||||||||||||
U.S. | U.S. | $ | 140,029 | $ | 134,845 | U.S. | $ | 132,663 | $ | 131,584 | ||||||
Non-U.S. | Non-U.S. | 6,651 | 6,980 | Non-U.S. | 6,101 | 7,384 | ||||||||||
Total Bank legal entities | Total Bank legal entities | 146,680 | 141,825 | Total Bank legal entities | 138,764 | 138,968 | ||||||||||
Non-Bank legal entities | Non-Bank legal entities | Non-Bank legal entities | ||||||||||||||
U.S.: | U.S.: | U.S.: | ||||||||||||||
Parent Company | Parent Company | 52,315 | 56,111 | Parent Company | 53,681 | 49,988 | ||||||||||
Non-Parent Company | Non-Parent Company | 58,027 | 54,813 | Non-Parent Company | 58,839 | 58,402 | ||||||||||
Total U.S. | Total U.S. | 110,342 | 110,924 | Total U.S. | 112,520 | 108,390 | ||||||||||
Non-U.S. | Non-U.S. | 64,173 | 59,501 | Non-U.S. | 56,083 | 63,366 | ||||||||||
Total Non-Bank legal entities | Total Non-Bank legal entities | 174,515 | 170,425 | Total Non-Bank legal entities | 168,603 | 171,756 | ||||||||||
Total Liquidity Resources | Total Liquidity Resources | $ | 321,195 | $ | 312,250 | Total Liquidity Resources | $ | 307,367 | $ | 310,724 |
Average Daily Balance Three Months Ended | Average Daily Balance Three Months Ended | |||||||||||||||
$ in millions | $ in millions | March 31, 2023 | December 31, 2022 | $ in millions | September 30, 2023 | June 30, 2023 | ||||||||||
Eligible HQLA1 | Eligible HQLA1 | Eligible HQLA1 | ||||||||||||||
Cash deposits with central banks | Cash deposits with central banks | $ | 58,133 | $ | 52,765 | Cash deposits with central banks | $ | 60,163 | $ | 53,387 | ||||||
Securities2 | Securities2 | 185,375 | 186,551 | Securities2 | 181,010 | 186,913 | ||||||||||
Total Eligible HQLA1 | Total Eligible HQLA1 | $ | 243,508 | $ | 239,316 | Total Eligible HQLA1 | $ | 241,173 | $ | 240,300 | ||||||
Net cash outflows | Net cash outflows | $ | 190,336 | $ | 181,772 | |||||||||||
LCR | LCR | 135 | % | 132 | % | LCR | 127 | % | 132 | % |
21 |
Management’s Discussion and Analysis |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Securities purchased under agreements to resell and Securities borrowed | Securities purchased under agreements to resell and Securities borrowed | $ | 268,101 | $ | 247,281 | Securities purchased under agreements to resell and Securities borrowed | $ | 222,485 | $ | 247,281 | ||||||
Securities sold under agreements to repurchase and Securities loaned | Securities sold under agreements to repurchase and Securities loaned | $ | 76,079 | $ | 78,213 | Securities sold under agreements to repurchase and Securities loaned | $ | 89,725 | $ | 78,213 | ||||||
Securities received as collateral1 | Securities received as collateral1 | $ | 9,867 | $ | 9,954 | Securities received as collateral1 | $ | 7,904 | $ | 9,954 |
Average Daily Balance Three Months Ended | Average Daily Balance Three Months Ended | |||||||||||||||
$ in millions | $ in millions | March 31, 2023 | December 31, 2022 | $ in millions | September 30, 2023 | December 31, 2022 | ||||||||||
Securities purchased under agreements to resell and Securities borrowed | Securities purchased under agreements to resell and Securities borrowed | $ | 254,449 | $ | 261,627 | Securities purchased under agreements to resell and Securities borrowed | $ | 222,503 | $ | 261,627 | ||||||
Securities sold under agreements to repurchase and Securities loaned | Securities sold under agreements to repurchase and Securities loaned | $ | 77,154 | $ | 77,268 | Securities sold under agreements to repurchase and Securities loaned | $ | 88,115 | $ | 77,268 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Savings and demand deposits: | Savings and demand deposits: | Savings and demand deposits: | ||||||||||||||
Brokerage sweep deposits1 | Brokerage sweep deposits1 | $ | 175,448 | $ | 202,592 | Brokerage sweep deposits1 | $ | 145,532 | $ | 202,592 | ||||||
Savings and other | Savings and other | 122,882 | 117,356 | Savings and other | 134,476 | 117,356 | ||||||||||
Total Savings and demand deposits | Total Savings and demand deposits | 298,330 | 319,948 | Total Savings and demand deposits | 280,008 | 319,948 | ||||||||||
Time deposits | Time deposits | 49,193 | 36,698 | Time deposits | 65,450 | 36,698 | ||||||||||
Total2 | Total2 | $ | 347,523 | $ | 356,646 | Total2 | $ | 345,458 | $ | 356,646 |
$ 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 | $ | — | $ | 4,587 | $ | 4,587 | Original maturities of one year or less | $ | — | $ | 4,350 | $ | 4,350 | ||||||||
Original maturities greater than one year | Original maturities greater than one year | Original maturities greater than one year | ||||||||||||||||||||
2023 | 2023 | $ | 4,504 | $ | 6,418 | $ | 10,922 | 2023 | $ | 1,823 | $ | 2,123 | $ | 3,946 | ||||||||
2024 | 2024 | 19,858 | 11,897 | 31,755 | 2024 | 11,750 | 11,611 | 23,361 | ||||||||||||||
2025 | 2025 | 21,666 | 9,428 | 31,094 | 2025 | 21,660 | 11,996 | 33,656 | ||||||||||||||
2026 | 2026 | 24,066 | 6,267 | 30,333 | 2026 | 23,760 | 7,874 | 31,634 | ||||||||||||||
2027 | 2027 | 18,855 | 6,876 | 25,731 | 2027 | 18,426 | 5,872 | 24,298 | ||||||||||||||
Thereafter | Thereafter | 85,715 | 30,045 | 115,760 | Thereafter | 91,085 | 34,863 | 125,948 | ||||||||||||||
Total greater than one year | Total greater than one year | $ | 168,504 | $ | 74,339 | $ | 242,843 | |||||||||||||||
Total | Total | $ | 174,664 | $ | 70,931 | $ | 245,595 | Total | $ | 168,504 | $ | 78,689 | $ | 247,193 | ||||||||
Total Borrowings | $ | 174,664 | $ | 75,518 | $ | 250,182 | ||||||||||||||||
Maturities over next 12 months2 | Maturities over next 12 months2 | $ | 20,382 | Maturities over next 12 months2 | $ | 21,514 |
22 |
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+ | Stable | ||||||||
Moody’s Investors Service, Inc. | P-1 | A1 | Stable | ||||||||
Rating and Investment Information, Inc. | a-1 | A | Positive | ||||||||
S&P Global Ratings | A-2 | A- | Stable |
MSBNA | |||||||||||
Short-Term Debt | Long-Term Debt | Rating Outlook | |||||||||
Fitch Ratings, Inc. | F1+ | AA- | Stable | ||||||||
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 March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
in millions, except for per share data | in millions, except for per share data | 2023 | 2022 | in millions, except for per share data | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Number of shares | Number of shares | 16 | 30 | Number of shares | 17 | 30 | 45 | 93 | ||||||||||||||||||||
Average price per share | Average price per share | $ | 95.16 | $ | 95.20 | Average price per share | $ | 87.59 | $ | 85.79 | $ | 89.26 | $ | 87.50 | ||||||||||||||
Total | Total | $ | 1,500 | $ | 2,872 | Total | $ | 1,500 | $ | 2,555 | $ | 4,000 | $ | 8,165 |
Announcement date | |||||
Amount per share | $ | ||||
Date to be paid | |||||
Shareholders of record as of |
23 |
Management’s Discussion and Analysis |
At March 31, 2023 and December 31, 2022 | At September 30, 2023 and December 31, 2022 | |||||||||||||||
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 | 5.8% | N/A | SCB1 | 5.8% | 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 requirement | Capital buffer requirement | 8.8% | 5.5% | Capital buffer requirement | 8.8% | 5.5% |
Regulatory Minimum | At March 31, 2023 and December 31, 2022 | Regulatory Minimum | At September 30, 2023 and December 31, 2022 | |||||||||||||||||||
Standardized | Advanced | Standardized | Advanced | |||||||||||||||||||
Required ratios1 | Required ratios1 | Required ratios1 | ||||||||||||||||||||
Common Equity Tier 1 capital ratio | Common Equity Tier 1 capital ratio | 4.5 | % | 13.3% | 10.0% | Common Equity Tier 1 capital ratio | 4.5 | % | 13.3% | 10.0% | ||||||||||||
Tier 1 capital ratio | Tier 1 capital ratio | 6.0 | % | 14.8% | 11.5% | Tier 1 capital ratio | 6.0 | % | 14.8% | 11.5% | ||||||||||||
Total capital ratio | Total capital ratio | 8.0 | % | 16.8% | 13.5% | Total capital ratio | 8.0 | % | 16.8% | 13.5% |
24 |
Management’s Discussion and Analysis |
$ in millions | $ in millions | Required Ratio1 | At March 31, 2023 | At December 31, 2022 | $ in millions | Required Ratio1 | At September 30, 2023 | At December 31, 2022 | ||||||||||||||||||||||||||||||||
Risk-based capital— Standardized | Risk-based capital— Standardized | Risk-based capital— Standardized | ||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 capital | Common Equity Tier 1 capital | $ | 69,454 | $ | 68,670 | Common Equity Tier 1 capital | $ | 69,148 | $ | 68,670 | ||||||||||||||||||||||||||||||
Tier 1 capital | Tier 1 capital | 77,947 | 77,191 | Tier 1 capital | 77,891 | 77,191 | ||||||||||||||||||||||||||||||||||
Total capital | Total capital | 89,794 | 86,575 | Total capital | 88,573 | 86,575 | ||||||||||||||||||||||||||||||||||
Total RWA | Total RWA | 459,107 | 447,849 | Total RWA | 443,816 | 447,849 | ||||||||||||||||||||||||||||||||||
Common Equity Tier 1 capital ratio | Common Equity Tier 1 capital ratio | 13.3 | % | 15.1 | % | 15.3 | % | Common Equity Tier 1 capital ratio | 13.3 | % | 15.6 | % | 15.3 | % | ||||||||||||||||||||||||||
Tier 1 capital ratio | Tier 1 capital ratio | 14.8 | % | 17.0 | % | 17.2 | % | Tier 1 capital ratio | 14.8 | % | 17.6 | % | 17.2 | % | ||||||||||||||||||||||||||
Total capital ratio | Total capital ratio | 16.8 | % | 19.6 | % | 19.3 | % | Total capital ratio | 16.8 | % | 20.0 | % | 19.3 | % |
$ in millions | $ in millions | Required Ratio1 | At March 31, 2023 | At December 31, 2022 | $ in millions | Required Ratio1 | At September 30, 2023 | At December 31, 2022 | ||||||||||||||
Risk-based capital— Advanced | Risk-based capital— Advanced | Risk-based capital— Advanced | ||||||||||||||||||||
Common Equity Tier 1 capital | Common Equity Tier 1 capital | $ | 69,454 | $ | 68,670 | Common Equity Tier 1 capital | $ | 69,148 | $ | 68,670 | ||||||||||||
Tier 1 capital | Tier 1 capital | 77,947 | 77,191 | Tier 1 capital | 77,891 | 77,191 | ||||||||||||||||
Total capital | Total capital | 89,321 | 86,159 | Total capital | 87,949 | 86,159 | ||||||||||||||||
Total RWA | Total RWA | 444,796 | 438,806 | Total RWA | 429,125 | 438,806 | ||||||||||||||||
Common Equity Tier 1 capital ratio | Common Equity Tier 1 capital ratio | 10.0 | % | 15.6 | % | 15.6 | % | Common Equity Tier 1 capital ratio | 10.0 | % | 16.1 | % | 15.6 | % | ||||||||
Tier 1 capital ratio | Tier 1 capital ratio | 11.5 | % | 17.5 | % | 17.6 | % | Tier 1 capital ratio | 11.5 | % | 18.2 | % | 17.6 | % | ||||||||
Total capital ratio | Total capital ratio | 13.5 | % | 20.1 | % | 19.6 | % | Total capital ratio | 13.5 | % | 20.5 | % | 19.6 | % | ||||||||
$ in millions | $ in millions | Required Ratio1 | At March 31, 2023 | At December 31, 2022 | $ in millions | Required Ratio1 | At September 30, 2023 | At December 31, 2022 | ||||||||||||||
Leverage-based capital | Leverage-based capital | Leverage-based capital | ||||||||||||||||||||
Adjusted average assets2 | Adjusted average assets2 | $ | 1,168,328 | $ | 1,150,772 | Adjusted average assets2 | $ | 1,152,379 | $ | 1,150,772 | ||||||||||||
Tier 1 leverage ratio | Tier 1 leverage ratio | 4.0 | % | 6.7 | % | 6.7 | % | Tier 1 leverage ratio | 4.0 | % | 6.8 | % | 6.7 | % | ||||||||
Supplementary leverage exposure3 | Supplementary leverage exposure3 | $ | 1,422,808 | $ | 1,399,403 | Supplementary leverage exposure3 | $ | 1,416,310 | $ | 1,399,403 | ||||||||||||
SLR | SLR | 5.0 | % | 5.5 | % | 5.5 | % | SLR | 5.0 | % | 5.5 | % | 5.5 | % |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | Change | $ in millions | At September 30, 2023 | At December 31, 2022 | Change | ||||||||||||||
Common Equity Tier 1 capital | Common Equity Tier 1 capital | Common Equity Tier 1 capital | ||||||||||||||||||||
Common stock and surplus | Common stock and surplus | $ | 1,395 | $ | 2,782 | $ | (1,387) | Common stock and surplus | $ | (344) | $ | 2,782 | $ | (3,126) | ||||||||
Retained earnings | Retained earnings | 96,516 | 95,047 | 1,469 | Retained earnings | 98,132 | 95,047 | 3,085 | ||||||||||||||
AOCI | AOCI | (5,711) | (6,253) | 542 | AOCI | (7,202) | (6,253) | (949) | ||||||||||||||
Regulatory adjustments and deductions: | Regulatory adjustments and deductions: | Regulatory adjustments and deductions: | ||||||||||||||||||||
Net goodwill | Net goodwill | (16,388) | (16,393) | 5 | Net goodwill | (16,388) | (16,393) | 5 | ||||||||||||||
Net intangible assets | Net intangible assets | (5,914) | (6,048) | 134 | Net intangible assets | (5,665) | (6,048) | 383 | ||||||||||||||
Other adjustments and deductions1 | Other adjustments and deductions1 | (444) | (465) | 21 | Other adjustments and deductions1 | 615 | (465) | 1,080 | ||||||||||||||
Total Common Equity Tier 1 capital | Total Common Equity Tier 1 capital | $ | 69,454 | $ | 68,670 | $ | 784 | Total Common Equity Tier 1 capital | $ | 69,148 | $ | 68,670 | $ | 478 | ||||||||
Additional Tier 1 capital | Additional Tier 1 capital | Additional Tier 1 capital | ||||||||||||||||||||
Preferred stock | Preferred stock | $ | 8,750 | $ | 8,750 | $ | — | Preferred stock | $ | 8,750 | $ | 8,750 | $ | — | ||||||||
Noncontrolling interests | Noncontrolling interests | 571 | 552 | 19 | Noncontrolling interests | 752 | 552 | 200 | ||||||||||||||
Additional Tier 1 capital | Additional Tier 1 capital | $ | 9,321 | $ | 9,302 | $ | 19 | Additional Tier 1 capital | $ | 9,502 | $ | 9,302 | $ | 200 | ||||||||
Deduction for investments in covered funds | Deduction for investments in covered funds | (828) | (781) | (47) | Deduction for investments in covered funds | (759) | (781) | 22 | ||||||||||||||
Total Tier 1 capital | Total Tier 1 capital | $ | 77,947 | $ | 77,191 | $ | 756 | Total Tier 1 capital | $ | 77,891 | $ | 77,191 | $ | 700 | ||||||||
Standardized Tier 2 capital | Standardized Tier 2 capital | Standardized Tier 2 capital | ||||||||||||||||||||
Subordinated debt | Subordinated debt | $ | 9,997 | $ | 7,846 | $ | 2,151 | Subordinated debt | $ | 8,665 | $ | 7,846 | $ | 819 | ||||||||
Eligible ACL | Eligible ACL | 1,898 | 1,613 | 285 | Eligible ACL | 2,040 | 1,613 | 427 | ||||||||||||||
Other adjustments and deductions | Other adjustments and deductions | (48) | (75) | 27 | Other adjustments and deductions | (23) | (75) | 52 | ||||||||||||||
Total Standardized Tier 2 capital | Total Standardized Tier 2 capital | $ | 11,847 | $ | 9,384 | $ | 2,463 | Total Standardized Tier 2 capital | $ | 10,682 | $ | 9,384 | $ | 1,298 | ||||||||
Total Standardized capital | Total Standardized capital | $ | 89,794 | $ | 86,575 | $ | 3,219 | Total Standardized capital | $ | 88,573 | $ | 86,575 | $ | 1,998 | ||||||||
Advanced Tier 2 capital | Advanced Tier 2 capital | Advanced Tier 2 capital | ||||||||||||||||||||
Subordinated debt | Subordinated debt | $ | 9,997 | $ | 7,846 | $ | 2,151 | Subordinated debt | $ | 8,665 | $ | 7,846 | $ | 819 | ||||||||
Eligible credit reserves | Eligible credit reserves | 1,425 | 1,197 | 228 | Eligible credit reserves | 1,416 | 1,197 | 219 | ||||||||||||||
Other adjustments and deductions | Other adjustments and deductions | (48) | (75) | 27 | Other adjustments and deductions | (23) | (75) | 52 | ||||||||||||||
Total Advanced Tier 2 capital | Total Advanced Tier 2 capital | $ | 11,374 | $ | 8,968 | $ | 2,406 | Total Advanced Tier 2 capital | $ | 10,058 | $ | 8,968 | $ | 1,090 | ||||||||
Total Advanced capital | Total Advanced capital | $ | 89,321 | $ | 86,159 | $ | 3,162 | Total Advanced capital | $ | 87,949 | $ | 86,159 | $ | 1,790 |
25 |
Management’s Discussion and Analysis |
Three Months Ended March 31, 2023 | Nine Months Ended September 30, 2023 | |||||||||||||||
$ in millions | $ in millions | Standardized | Advanced | $ in millions | Standardized | Advanced | ||||||||||
Credit risk RWA | Credit risk RWA | Credit risk RWA | ||||||||||||||
Balance at December 31, 2022 | Balance at December 31, 2022 | $ | 397,275 | $ | 285,638 | Balance at December 31, 2022 | $ | 397,275 | $ | 285,638 | ||||||
Change related to the following items: | Change related to the following items: | Change related to the following items: | ||||||||||||||
Derivatives | Derivatives | 1,388 | 1,399 | Derivatives | (969) | (5,361) | ||||||||||
Securities financing transactions | Securities financing transactions | 4,672 | 1,842 | Securities financing transactions | (462) | 238 | ||||||||||
Investment securities | Investment securities | (290) | 77 | Investment securities | (1,364) | (1,296) | ||||||||||
Commitments, guarantees and loans | Commitments, guarantees and loans | (1,968) | 1,374 | Commitments, guarantees and loans | (88) | 5,977 | ||||||||||
Equity investments | Equity investments | (370) | (380) | Equity investments | (416) | (409) | ||||||||||
Other credit risk | Other credit risk | 5,258 | 4,714 | Other credit risk | 2,253 | 551 | ||||||||||
Total change in credit risk RWA | Total change in credit risk RWA | $ | 8,690 | $ | 9,026 | Total change in credit risk RWA | $ | (1,046) | $ | (300) | ||||||
Balance at March 31, 2023 | $ | 405,965 | $ | 294,664 | ||||||||||||
Balance at September 30, 2023 | Balance at September 30, 2023 | $ | 396,229 | $ | 285,338 | |||||||||||
Market risk RWA | Market risk RWA | Market risk RWA | ||||||||||||||
Balance at December 31, 2022 | Balance at December 31, 2022 | $ | 50,574 | $ | 50,563 | Balance at December 31, 2022 | $ | 50,574 | $ | 50,563 | ||||||
Change related to the following items: | Change related to the following items: | Change related to the following items: | ||||||||||||||
Regulatory VaR | Regulatory VaR | 242 | 242 | Regulatory VaR | (2,210) | (2,210) | ||||||||||
Regulatory stressed VaR | Regulatory stressed VaR | (1,042) | (1,042) | Regulatory stressed VaR | (5,517) | (5,517) | ||||||||||
Incremental risk charge | Incremental risk charge | (405) | (405) | Incremental risk charge | (216) | (216) | ||||||||||
Comprehensive risk measure | Comprehensive risk measure | 24 | (84) | Comprehensive risk measure | 355 | 366 | ||||||||||
Specific risk | Specific risk | 3,749 | 3,749 | Specific risk | 4,601 | 4,601 | ||||||||||
Total change in market risk RWA | Total change in market risk RWA | $ | 2,568 | $ | 2,460 | Total change in market risk RWA | $ | (2,987) | $ | (2,976) | ||||||
Balance at March 31, 2023 | $ | 53,142 | $ | 53,023 | ||||||||||||
Balance at September 30, 2023 | Balance at September 30, 2023 | $ | 47,587 | $ | 47,587 | |||||||||||
Operational risk RWA | Operational risk RWA | Operational risk RWA | ||||||||||||||
Balance at December 31, 2022 | Balance at December 31, 2022 | N/A | $ | 102,605 | Balance at December 31, 2022 | N/A | $ | 102,605 | ||||||||
Change in operational risk RWA | Change in operational risk RWA | N/A | (5,496) | Change in operational risk RWA | N/A | (6,405) | ||||||||||
Balance at March 31, 2023 | N/A | $ | 97,109 | |||||||||||||
Balance at September 30, 2023 | Balance at September 30, 2023 | N/A | $ | 96,200 | ||||||||||||
Total RWA | Total RWA | $ | 459,107 | $ | 444,796 | Total RWA | $ | 443,816 | $ | 429,125 |
Actual Amount/Ratio | Actual Amount/Ratio | |||||||||||||||||||||||||||
$ in millions | $ in millions | Regulatory Minimum | Required Ratio1 | At March 31, 2023 | At December 31, 2022 | $ in millions | Regulatory Minimum | Required Ratio1 | At September 30, 2023 | At December 31, 2022 | ||||||||||||||||||
External TLAC2 | External TLAC2 | $ | 250,191 | $ | 245,951 | External TLAC2 | $ | 248,739 | $ | 245,951 | ||||||||||||||||||
External TLAC as a % of RWA | External TLAC as a % of RWA | 18.0 | % | 21.5 | % | 54.5 | % | 54.9 | % | External TLAC as a % of RWA | 18.0 | % | 21.5 | % | 56.0 | % | 54.9 | % | ||||||||||
External TLAC as a % of leverage exposure | External TLAC as a % of leverage exposure | 7.5 | % | 9.5 | % | 17.6 | % | 17.6 | % | External TLAC as a % of leverage exposure | 7.5 | % | 9.5 | % | 17.6 | % | 17.6 | % | ||||||||||
Eligible LTD3 | Eligible LTD3 | $ | 162,775 | $ | 159,444 | Eligible LTD3 | $ | 161,898 | $ | 159,444 | ||||||||||||||||||
Eligible LTD as a % of RWA | Eligible LTD as a % of RWA | 9.0 | % | 9.0 | % | 35.5 | % | 35.6 | % | Eligible LTD as a % of RWA | 9.0 | % | 9.0 | % | 36.5 | % | 35.6 | % | ||||||||||
Eligible LTD as a % of leverage exposure | Eligible LTD as a % of leverage exposure | 4.5 | % | 4.5 | % | 11.4 | % | 11.4 | % | Eligible LTD as a % of leverage exposure | 4.5 | % | 4.5 | % | 11.4 | % | 11.4 | % |
26 |
Management’s Discussion and Analysis |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in billions | $ in billions | 2023 | 2022 | $ in billions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Institutional Securities | Institutional Securities | $ | 45.6 | $ | 48.8 | Institutional Securities | $ | 45.6 | $ | 48.8 | $ | 45.6 | $ | 48.8 | ||||||||||||||
Wealth Management | Wealth Management | 28.8 | 31.0 | Wealth Management | 28.8 | 31.0 | 28.8 | 31.0 | ||||||||||||||||||||
Investment Management | Investment Management | 10.4 | 10.6 | Investment Management | 10.4 | 10.6 | 10.4 | 10.6 | ||||||||||||||||||||
Parent | 6.6 | 6.3 | ||||||||||||||||||||||||||
Parent Company | Parent Company | 6.0 | 2.5 | 6.3 | 4.3 | |||||||||||||||||||||||
Total | Total | $ | 91.4 | $ | 96.7 | Total | $ | 90.8 | $ | 92.9 | $ | 91.1 | $ | 94.7 |
27 |
Management’s Discussion and Analysis |
Management’s Discussion and Analysis |
29 |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||
March 31, 2023 | September 30, 2023 | |||||||||||||||||||||||||||
$ in millions | $ in millions | Period End | Average | High1 | Low1 | $ in millions | Period End | Average | High1 | Low1 | ||||||||||||||||||
Interest rate and credit spread | Interest rate and credit spread | $ | 32 | $ | 36 | $ | 43 | $ | 31 | Interest rate and credit spread | $ | 35 | $ | 36 | $ | 43 | $ | 29 | ||||||||||
Equity price | Equity price | 29 | 25 | 31 | 16 | Equity price | 26 | 23 | 27 | 18 | ||||||||||||||||||
Foreign exchange rate | Foreign exchange rate | 10 | 10 | 18 | 6 | Foreign exchange rate | 7 | 8 | 10 | 7 | ||||||||||||||||||
Commodity price | Commodity price | 21 | 24 | 35 | 16 | Commodity price | 20 | 16 | 21 | 12 | ||||||||||||||||||
Less: Diversification benefit2 | Less: Diversification benefit2 | (44) | (47) | N/A | Less: Diversification benefit2 | (50) | (41) | N/A | ||||||||||||||||||||
Primary Risk Categories | Primary Risk Categories | $ | 48 | $ | 48 | $ | 60 | $ | 39 | Primary Risk Categories | $ | 38 | $ | 42 | $ | 48 | $ | 35 | ||||||||||
Credit Portfolio | Credit Portfolio | 21 | 19 | 21 | 18 | Credit Portfolio | 22 | 22 | 23 | 21 | ||||||||||||||||||
Less: Diversification benefit2 | Less: Diversification benefit2 | (19) | (12) | N/A | Less: Diversification benefit2 | (19) | (16) | N/A | ||||||||||||||||||||
Total Management VaR | Total Management VaR | $ | 50 | $ | 55 | $ | 72 | $ | 45 | Total Management VaR | $ | 41 | $ | 48 | $ | 57 | $ | 41 |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||
December 31, 2022 | June 30, 2023 | |||||||||||||||||||||||||||
$ in millions | $ in millions | Period End | Average | High1 | Low1 | $ in millions | Period End | Average | High1 | Low1 | ||||||||||||||||||
Interest rate and credit spread | Interest rate and credit spread | $ | 37 | $ | 36 | $ | 43 | $ | 32 | Interest rate and credit spread | $ | 36 | $ | 36 | $ | 42 | $ | 31 | ||||||||||
Equity price | Equity price | 16 | 20 | 28 | 16 | Equity price | 25 | 25 | 34 | 20 | ||||||||||||||||||
Foreign exchange rate | Foreign exchange rate | 10 | 9 | 12 | 7 | Foreign exchange rate | 8 | 10 | 12 | 8 | ||||||||||||||||||
Commodity price | Commodity price | 26 | 30 | 41 | 20 | Commodity price | 12 | 17 | 25 | 12 | ||||||||||||||||||
Less: Diversification benefit2 | Less: Diversification benefit2 | (36) | (39) | N/A | Less: Diversification benefit2 | (33) | (40) | N/A | ||||||||||||||||||||
Primary Risk Categories | Primary Risk Categories | $ | 53 | $ | 56 | $ | 65 | $ | 47 | Primary Risk Categories | $ | 48 | $ | 48 | $ | 56 | $ | 39 | ||||||||||
Credit Portfolio | Credit Portfolio | 19 | 18 | 19 | 15 | Credit Portfolio | 23 | 22 | 23 | 20 | ||||||||||||||||||
Less: Diversification benefit2 | Less: Diversification benefit2 | (9) | (10) | N/A | Less: Diversification benefit2 | (20) | (18) | N/A | ||||||||||||||||||||
Total Management VaR | Total Management VaR | $ | 63 | $ | 64 | $ | 71 | $ | 56 | Total Management VaR | $ | 51 | $ | 52 | $ | 57 | $ | 46 |
Risk Disclosures |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At June 30, 2023 | ||||||||||
Derivatives | Derivatives | $ | 6 | $ | 7 | Derivatives | $ | 6 | $ | 6 | ||||||
Borrowings carried at fair value | Borrowings carried at fair value | 42 | 39 | Borrowings carried at fair value | 40 | 43 |
$ in millions | At March 31, 2023 | At December 31, 2022 | ||||||
Basis point change | ||||||||
+100 | $ | 533 | $ | 643 | ||||
-100 | (637) | (745) |
$ in millions | At September 30, 2023 | At June 30, 2023 | ||||||
Basis point change | ||||||||
+100 | $ | 506 | $ | 532 | ||||
-100 | (535) | (596) |
Risk Disclosures |
Loss from 10% Decline | Loss from 10% Decline | |||||||||||||||
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At June 30, 2023 | ||||||||||
Investments related to Investment Management activities | Investments related to Investment Management activities | $ | 449 | $ | 431 | Investments related to Investment Management activities | $ | 472 | $ | 458 | ||||||
Other investments: | Other investments: | Other investments: | ||||||||||||||
MUMSS | MUMSS | 144 | 143 | MUMSS | 129 | 132 | ||||||||||
Other Firm investments | Other Firm investments | 375 | 378 | Other Firm investments | 395 | 399 |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||
$ in millions | $ in millions | HFI | HFS | FVO2 | Total | $ in millions | HFI | HFS | FVO1 | Total | ||||||||||||||||||
Institutional Securities: | Institutional Securities: | Institutional Securities: | ||||||||||||||||||||||||||
Corporate | Corporate | $ | 7,435 | $ | 11,150 | $ | — | $ | 18,585 | Corporate | $ | 7,181 | $ | 11,086 | $ | — | $ | 18,267 | ||||||||||
Secured lending facilities | Secured lending facilities | 37,187 | 3,006 | 6 | 40,199 | Secured lending facilities | 39,119 | 2,861 | — | 41,980 | ||||||||||||||||||
Commercial and Residential real estate | Commercial and Residential real estate | 8,601 | 948 | 2,535 | 12,084 | Commercial and Residential real estate | 8,389 | 259 | 3,139 | 11,787 | ||||||||||||||||||
Securities-based lending and Other | Securities-based lending and Other | 3,430 | 16 | 5,276 | 8,722 | Securities-based lending and Other | 3,039 | — | 4,419 | 7,458 | ||||||||||||||||||
Total Institutional Securities | Total Institutional Securities | 56,653 | 15,120 | 7,817 | 79,590 | Total Institutional Securities | 57,728 | 14,206 | 7,558 | 79,492 | ||||||||||||||||||
Wealth Management: | Wealth Management: | Wealth Management: | ||||||||||||||||||||||||||
Residential real estate | Residential real estate | 55,400 | 25 | — | 55,425 | Residential real estate | 59,002 | 23 | — | 59,025 | ||||||||||||||||||
Securities-based lending and Other | Securities-based lending and Other | 88,463 | 1 | — | 88,464 | Securities-based lending and Other | 87,165 | 1 | — | 87,166 | ||||||||||||||||||
Total Wealth Management | Total Wealth Management | 143,863 | 26 | — | 143,889 | Total Wealth Management | 146,167 | 24 | — | 146,191 | ||||||||||||||||||
Total Investment Management1 | 4 | — | 214 | 218 | ||||||||||||||||||||||||
Total Investment Management2 | Total Investment Management2 | 4 | — | 427 | 431 | |||||||||||||||||||||||
Total loans | Total loans | 200,520 | 15,146 | 8,031 | 223,697 | Total loans | 203,899 | 14,230 | 7,985 | 226,114 | ||||||||||||||||||
ACL | ACL | (970) | (970) | ACL | (1,157) | (1,157) | ||||||||||||||||||||||
Total loans, net of ACL | Total loans, net of ACL | $ | 199,550 | $ | 15,146 | $ | 8,031 | $ | 222,727 | Total loans, net of ACL | $ | 202,742 | $ | 14,230 | $ | 7,985 | $ | 224,957 | ||||||||||
Lending commitments3 | Lending commitments3 | $ | 140,096 | Lending commitments3 | $ | 147,800 | ||||||||||||||||||||||
Total exposure | Total exposure | $ | 362,823 | Total exposure | $ | 372,757 |
At December 31, 2022 | At December 31, 2022 | |||||||||||||||||||||||||||
$ in millions | $ in millions | HFI | HFS | FVO2 | Total | $ in millions | HFI | HFS | FVO1 | Total | ||||||||||||||||||
Institutional Securities: | Institutional Securities: | Institutional Securities: | ||||||||||||||||||||||||||
Corporate | Corporate | $ | 6,589 | $ | 10,634 | $ | — | $ | 17,223 | Corporate | $ | 6,589 | $ | 10,634 | $ | — | $ | 17,223 | ||||||||||
Secured lending facilities | Secured lending facilities | 35,606 | 3,176 | 6 | 38,788 | Secured lending facilities | 35,606 | 3,176 | 6 | 38,788 | ||||||||||||||||||
Commercial and Residential real estate | Commercial and Residential real estate | 8,515 | 926 | 2,548 | 11,989 | Commercial and Residential real estate | 8,515 | 926 | 2,548 | 11,989 | ||||||||||||||||||
Securities-based lending and Other | Securities-based lending and Other | 2,865 | 39 | 5,625 | 8,529 | Securities-based lending and Other | 2,865 | 39 | 5,625 | 8,529 | ||||||||||||||||||
Total Institutional Securities | Total Institutional Securities | 53,575 | 14,775 | 8,179 | 76,529 | Total Institutional Securities | 53,575 | 14,775 | 8,179 | 76,529 | ||||||||||||||||||
Wealth Management: | Wealth Management: | Wealth Management: | ||||||||||||||||||||||||||
Residential real estate | Residential real estate | 54,460 | 4 | — | 54,464 | Residential real estate | 54,460 | 4 | — | 54,464 | ||||||||||||||||||
Securities-based lending and Other | Securities-based lending and Other | 91,797 | 9 | — | 91,806 | Securities-based lending and Other | 91,797 | 9 | — | 91,806 | ||||||||||||||||||
Total Wealth Management | Total Wealth Management | 146,257 | 13 | — | 146,270 | Total Wealth Management | 146,257 | 13 | — | 146,270 | ||||||||||||||||||
Total Investment Management1 | 4 | — | 218 | 222 | ||||||||||||||||||||||||
Total Investment Management2 | Total Investment Management2 | 4 | — | 218 | 222 | |||||||||||||||||||||||
Total loans | Total loans | 199,836 | 14,788 | 8,397 | 223,021 | Total loans | 199,836 | 14,788 | 8,397 | 223,021 | ||||||||||||||||||
ACL | ACL | (839) | (839) | ACL | (839) | (839) | ||||||||||||||||||||||
Total loans, net of ACL | Total loans, net of ACL | $ | 198,997 | $ | 14,788 | $ | 8,397 | $ | 222,182 | Total loans, net of ACL | $ | 198,997 | $ | 14,788 | $ | 8,397 | $ | 222,182 | ||||||||||
Lending commitments3 | Lending commitments3 | $ | 136,960 | Lending commitments3 | $ | 136,960 | ||||||||||||||||||||||
Total exposure | Total exposure | $ | 359,142 | Total exposure | $ | 359,142 |
32 |
Risk Disclosures |
$ in millions | |||||
ACL—Loans | $ | 839 | |||
ACL—Lending Commitments | 504 | ||||
Total at December 31, 2022 | $ | 1,343 | |||
Gross charge-offs | |||||
Recoveries | 1 | ||||
Net (charge-offs) recoveries | (140) | ||||
Provision for credit losses | |||||
Other | |||||
Total at | $ | ||||
ACL—Loans | $ | ||||
ACL—Lending commitments |
Three Months Ended March 31, 2023 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | IS | WM | Total | $ in millions | IS | WM | Total | IS | WM | Total | |||||||||||||||||||||||||||||
Loans | Loans | $ | 160 | $ | 41 | $ | 201 | Loans | $ | 80 | $ | 43 | $ | 123 | $ | 314 | $ | 148 | $ | 462 | ||||||||||||||||||||
Lending commitments | Lending commitments | 29 | 4 | 33 | Lending commitments | 13 | (2) | 11 | 65 | 2 | 67 | |||||||||||||||||||||||||||||
Total | Total | $ | 189 | $ | 45 | $ | 234 | Total | $ | 93 | $ | 41 | $ | 134 | $ | 379 | $ | 150 | $ | 529 |
4Q 2023 | 4Q 2024 | |||||||
Year-over-year growth rate | (0.1) | % | 2.0 | % |
4Q 2023 | 4Q 2024 | |||||||
Year-over-year growth rate | 0.9 | % | 1.2 | % |
At March 31, 2023 | At December 31, 2022 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||
IS | WM | IS | WM | IS | WM | IS | WM | |||||||||||||||||||||
Accrual | Accrual | 98.9 | % | 99.9 | % | 99.3 | % | 99.9 | % | Accrual | 99.4 | % | 99.8 | % | 99.3 | % | 99.9 | % | ||||||||||
Nonaccrual1 | Nonaccrual1 | 1.1 | % | 0.1 | % | 0.7 | % | 0.1 | % | Nonaccrual1 | 0.6 | % | 0.2 | % | 0.7 | % | 0.1 | % |
$ in millions | $ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | $ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | ||||||||||||||||||||||||||
For the Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2023 | For the Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||
Net charge-off (recovery) ratio1 | Net charge-off (recovery) ratio1 | 0.01 | % | — | % | 0.81 | % | — | % | — | % | 0.04 | % | Net charge-off (recovery) ratio1 | 0.43 | % | — | % | 1.25 | % | — | % | — | % | 0.07 | % | ||||||||||||||
Average loans | Average loans | $ | 6,953 | $ | 36,322 | $ | 8,568 | $ | 54,802 | $ | 93,021 | $ | 199,666 | Average loans | $ | 7,057 | $ | 37,346 | $ | 8,612 | $ | 56,330 | $ | 91,583 | $ | 200,928 | ||||||||||||||
For the Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||
Net charge-off ratio1 | — | % | 0.01 | % | 0.09 | % | — | % | — | % | 0.01 | % | ||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2022 | For the Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||
Net charge-off (recovery) ratio1 | Net charge-off (recovery) ratio1 | (0.09) | % | 0.01 | % | 0.09 | % | — | % | 0.02 | % | 0.01 | % | |||||||||||||||||||||||||||
Average loans | Average loans | $ | 5,802 | $ | 31,353 | $ | 7,805 | $ | 45,521 | $ | 87,900 | $ | 178,381 | Average loans | $ | 6,441 | $ | 32,367 | $ | 8,196 | $ | 48,675 | $ | 92,681 | $ | 188,360 |
At March 31, 2023 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | <1 | 1-5 | 5-15 | >15 | Total | ||||||||||||
Loans | |||||||||||||||||
AA | $ | 48 | $ | — | $ | 105 | $ | — | $ | 153 | |||||||
A | 1,184 | 2,020 | 186 | — | 3,390 | ||||||||||||
BBB | 5,157 | 11,706 | 453 | — | 17,316 | ||||||||||||
BB | 13,020 | 17,732 | 623 | 377 | 31,752 | ||||||||||||
Other NIG | 7,942 | 11,081 | 3,440 | 181 | 22,644 | ||||||||||||
Unrated2 | 72 | 956 | 586 | 1,956 | 3,570 | ||||||||||||
Total loans, net of ACL | 27,423 | 43,495 | 5,393 | 2,514 | 78,825 | ||||||||||||
Lending commitments | |||||||||||||||||
AAA | — | 50 | — | — | 50 | ||||||||||||
AA | 2,273 | 2,775 | 289 | — | 5,337 | ||||||||||||
A | 5,336 | 19,947 | 407 | — | 25,690 | ||||||||||||
BBB | 11,852 | 41,144 | 747 | — | 53,743 | ||||||||||||
BB | 3,680 | 17,212 | 863 | 171 | 21,926 | ||||||||||||
Other NIG | 1,226 | 13,411 | 861 | 3 | 15,501 | ||||||||||||
Unrated2 | 2 | 5 | — | — | 7 | ||||||||||||
Total lending commitments | 24,369 | 94,544 | 3,167 | 174 | 122,254 | ||||||||||||
Total exposure | $ | 51,792 | $ | 138,039 | $ | 8,560 | $ | 2,688 | $ | 201,079 |
Risk Disclosures |
At September 30, 2023 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | <1 | 1-5 | 5-15 | >15 | Total | ||||||||||||
Loans | |||||||||||||||||
AA | $ | 2 | $ | 10 | $ | 421 | $ | — | $ | 433 | |||||||
A | 953 | 1,390 | 184 | — | 2,527 | ||||||||||||
BBB | 8,702 | 11,301 | 407 | — | 20,410 | ||||||||||||
BB | 10,124 | 15,569 | 1,807 | 229 | 27,729 | ||||||||||||
Other NIG | 8,725 | 11,720 | 3,387 | 132 | 23,964 | ||||||||||||
Unrated2 | 58 | 781 | 271 | 2,474 | 3,584 | ||||||||||||
Total loans, net of ACL | 28,564 | 40,771 | 6,477 | 2,835 | 78,647 | ||||||||||||
Lending commitments | |||||||||||||||||
AAA | — | 50 | — | — | 50 | ||||||||||||
AA | 1,821 | 3,941 | 53 | — | 5,815 | ||||||||||||
A | 5,186 | 19,315 | 687 | — | 25,188 | ||||||||||||
BBB | 12,805 | 45,677 | 959 | — | 59,441 | ||||||||||||
BB | 3,589 | 16,221 | 1,571 | 468 | 21,849 | ||||||||||||
Other NIG | 1,076 | 14,135 | 1,126 | 3 | 16,340 | ||||||||||||
Unrated2 | 2 | 2 | 2 | — | 6 | ||||||||||||
Total lending commitments | 24,479 | 99,341 | 4,398 | 471 | 128,689 | ||||||||||||
Total exposure | $ | 53,043 | $ | 140,112 | $ | 10,875 | $ | 3,306 | $ | 207,336 |
At December 31, 2022 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | <1 | 1-5 | 5-15 | >15 | Total | ||||||||||||
Loans | |||||||||||||||||
AA | $ | 66 | $ | — | $ | 139 | $ | — | $ | 205 | |||||||
A | 1,331 | 787 | 185 | — | 2,303 | ||||||||||||
BBB | 5,632 | 10,712 | 465 | — | 16,809 | ||||||||||||
BB | 11,045 | 19,219 | 796 | 162 | 31,222 | ||||||||||||
Other NIG | 7,274 | 10,249 | 3,945 | 139 | 21,607 | ||||||||||||
Unrated2 | 95 | 924 | 624 | 2,066 | 3,709 | ||||||||||||
Total loans, net of ACL | 25,443 | 41,891 | 6,154 | 2,367 | 75,855 | ||||||||||||
Lending commitments | |||||||||||||||||
AAA | — | 50 | — | — | 50 | ||||||||||||
AA | 2,515 | 2,935 | 11 | — | 5,461 | ||||||||||||
A | 5,030 | 19,717 | 202 | 330 | 25,279 | ||||||||||||
BBB | 10,263 | 39,615 | 566 | — | 50,444 | ||||||||||||
BB | 3,691 | 17,656 | 1,416 | 96 | 22,859 | ||||||||||||
Other NIG | 1,173 | 13,872 | 530 | — | 15,575 | ||||||||||||
Unrated2 | — | 20 | — | 3 | 23 | ||||||||||||
Total lending commitments | 22,672 | 93,865 | 2,725 | 429 | 119,691 | ||||||||||||
Total exposure | $ | 48,115 | $ | 135,756 | $ | 8,879 | $ | 2,796 | $ | 195,546 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Industry | Industry | Industry | ||||||||||||||
Financials | Financials | $ | 52,298 | $ | 54,222 | Financials | $ | 55,932 | $ | 54,222 | ||||||
Real estate | Real estate | 36,203 | 32,358 | Real estate | 35,538 | 32,358 | ||||||||||
Industrials | Industrials | 18,911 | 14,557 | |||||||||||||
Communications services | Communications services | 14,857 | 15,336 | Communications services | 15,182 | 15,336 | ||||||||||
Industrials | 14,620 | 14,557 | ||||||||||||||
Consumer discretionary | Consumer discretionary | 14,263 | 11,592 | |||||||||||||
Information technology | Information technology | 14,379 | 13,790 | Information technology | 11,987 | 13,790 | ||||||||||
Utilities | Utilities | 11,785 | 10,542 | |||||||||||||
Healthcare | Healthcare | 12,506 | 12,353 | Healthcare | 11,580 | 12,353 | ||||||||||
Utilities | 11,730 | 10,542 | ||||||||||||||
Consumer discretionary | 11,540 | 11,592 | ||||||||||||||
Consumer staples | Consumer staples | 10,317 | 7,823 | Consumer staples | 9,350 | 7,823 | ||||||||||
Energy | Energy | 8,672 | 9,115 | Energy | 9,170 | 9,115 | ||||||||||
Insurance | Insurance | 6,155 | 5,925 | |||||||||||||
Materials | Materials | 6,210 | 6,102 | Materials | 6,008 | 6,102 | ||||||||||
Insurance | 5,979 | 5,925 | ||||||||||||||
Other | Other | 1,768 | 1,831 | Other | 1,475 | 1,831 | ||||||||||
Total exposure | Total exposure | $ | 201,079 | $ | 195,546 | Total exposure | $ | 207,336 | $ | 195,546 |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||||||||
Contractual Years to Maturity | Contractual Years to Maturity | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | <1 | 1-5 | 5-15 | Total | $ in millions | <1 | 1-5 | 5-15 | Total | ||||||||||||||||||||||||
Loans, net of ACL | Loans, net of ACL | $ | 2,361 | $ | 1,193 | $ | 2,401 | $ | 5,955 | Loans, net of ACL | $ | 2,168 | $ | 1,018 | $ | 2,793 | $ | 5,979 | ||||||||||||||||
Lending commitments | Lending commitments | 4,507 | 481 | 459 | 5,447 | Lending commitments | 4,361 | 1,710 | 622 | 6,693 | ||||||||||||||||||||||||
Total exposure | Total exposure | $ | 6,868 | $ | 1,674 | $ | 2,860 | $ | 11,402 | Total exposure | $ | 6,529 | $ | 2,728 | $ | 3,415 | $ | 12,672 |
At December 31, 2022 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | <1 | 1-5 | 5-15 | Total | |||||||||||||
Loans, net of ACL | $ | 2,385 | $ | 1,441 | $ | 2,771 | $ | 6,597 | |||||||||
Lending commitments | 3,079 | 861 | 603 | 4,543 | |||||||||||||
Total exposure | $ | 5,464 | $ | 2,302 | $ | 3,374 | $ | 11,140 |
At March 31, 2023 | |||||||||||||||||
$ in millions | Loans | Lending Commitments | Total | ||||||||||||||
Corporate | $ | 7,435 | $ | 82,758 | $ | 90,193 | |||||||||||
Secured lending facilities | 37,187 | 13,893 | 51,080 | ||||||||||||||
Commercial real estate | 8,601 | 371 | 8,972 | ||||||||||||||
Securities-based lending and Other | 3,430 | 955 | 4,385 | ||||||||||||||
Total, before ACL | $ | 56,653 | $ | 97,977 | $ | 154,630 | |||||||||||
ACL | $ | (765) | $ | (515) | $ | (1,280) |
At December 31, 2022 | |||||||||||||||||
$ in millions | Loans | Lending Commitments | Total | ||||||||||||||
Corporate | $ | 6,589 | $ | 79,882 | $ | 86,471 | |||||||||||
Secured lending facilities | 35,606 | 12,803 | 48,409 | ||||||||||||||
Commercial real estate | 8,515 | 374 | 8,889 | ||||||||||||||
Securities-based lending and Other | 2,865 | 985 | 3,850 | ||||||||||||||
Total, before ACL | $ | 53,575 | $ | 94,044 | $ | 147,619 | |||||||||||
ACL | $ | (674) | $ | (484) | $ | (1,158) |
Risk Disclosures |
At September 30, 2023 | |||||||||||
$ in millions | Loans | Lending Commitments | Total | ||||||||
Corporate | $ | 7,181 | $ | 88,333 | $ | 95,514 | |||||
Secured lending facilities | 39,119 | 15,055 | 54,174 | ||||||||
Commercial real estate | 8,389 | 389 | 8,778 | ||||||||
Securities-based lending and Other | 3,039 | 1,017 | 4,056 | ||||||||
Total, before ACL | $ | 57,728 | $ | 104,794 | $ | 162,522 | |||||
ACL | $ | (845) | $ | (547) | $ | (1,392) |
At December 31, 2022 | |||||||||||||||||
$ in millions | Loans | Lending Commitments | Total | ||||||||||||||
Corporate | $ | 6,589 | $ | 79,882 | $ | 86,471 | |||||||||||
Secured lending facilities | 35,606 | 12,803 | 48,409 | ||||||||||||||
Commercial real estate | 8,515 | 374 | 8,889 | ||||||||||||||
Securities-based lending and Other | 2,865 | 985 | 3,850 | ||||||||||||||
Total, before ACL | $ | 53,575 | $ | 94,044 | $ | 147,619 | |||||||||||
ACL | $ | (674) | $ | (484) | $ | (1,158) |
At March 31, 2023 | At December 31, 2022 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Loans1 | LC1 | Total | Loans1 | LC1 | Total | $ in millions | Loans1 | LC1 | Total | Loans1 | LC1 | Total | ||||||||||||||||||||||||||||||||
Americas | Americas | $ | 6,103 | $ | 367 | $ | 6,470 | $ | 6,320 | $ | 378 | $ | 6,698 | Americas | $ | 5,752 | $ | 334 | $ | 6,086 | $ | 6,320 | $ | 378 | $ | 6,698 | ||||||||||||||||||||
EMEA | EMEA | 3,367 | 84 | 3,451 | 3,040 | 79 | 3,119 | EMEA | 2,939 | 59 | 2,998 | 3,040 | 79 | 3,119 | ||||||||||||||||||||||||||||||||
Asia | Asia | 427 | 5 | 432 | 445 | 5 | 450 | Asia | 376 | 121 | 497 | 445 | 5 | 450 | ||||||||||||||||||||||||||||||||
Total | Total | $ | 9,897 | $ | 456 | $ | 10,353 | $ | 9,805 | $ | 462 | $ | 10,267 | Total | $ | 9,067 | $ | 514 | $ | 9,581 | $ | 9,805 | $ | 462 | $ | 10,267 |
At March 31, 2023 | At December 31, 2022 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Loans1 | LC1 | Total | Loans1 | LC1 | Total | $ in millions | Loans1 | LC1 | Total | Loans1 | LC1 | Total | ||||||||||||||||||||||||||||||||
Office | Office | $ | 3,869 | $ | 273 | $ | 4,142 | $ | 3,861 | $ | 301 | $ | 4,162 | Office | $ | 3,529 | $ | 217 | $ | 3,746 | $ | 3,861 | $ | 301 | $ | 4,162 | ||||||||||||||||||||
Industrial | Industrial | 2,689 | 18 | 2,707 | 2,561 | 25 | 2,586 | Industrial | 2,085 | 26 | 2,111 | 2,561 | 25 | 2,586 | ||||||||||||||||||||||||||||||||
Multifamily | Multifamily | 1,647 | 82 | 1,729 | 1,889 | 85 | 1,974 | Multifamily | 1,622 | 188 | 1,810 | 1,889 | 85 | 1,974 | ||||||||||||||||||||||||||||||||
Hotel | Hotel | 797 | 77 | 874 | 780 | 45 | 825 | |||||||||||||||||||||||||||||||||||||||
Retail | Retail | 846 | 6 | 852 | 659 | 6 | 665 | Retail | 785 | 6 | 791 | 659 | 6 | 665 | ||||||||||||||||||||||||||||||||
Hotel | 834 | 77 | 911 | 780 | 45 | 825 | ||||||||||||||||||||||||||||||||||||||||
Other | Other | 12 | — | 12 | 55 | — | 55 | Other | 249 | — | 249 | 55 | — | 55 | ||||||||||||||||||||||||||||||||
Total | Total | $ | 9,897 | $ | 456 | $ | 10,353 | $ | 9,805 | $ | 462 | $ | 10,267 | Total | $ | 9,067 | $ | 514 | $ | 9,581 | $ | 9,805 | $ | 462 | $ | 10,267 |
$ in millions | $ in millions | Corporate | Secured Lending Facilities | Commercial Real Estate | Other | Total | $ in millions | Corporate | Secured Lending Facilities | Commercial Real Estate | Other | Total | ||||||||||||||||||||||
ACL—Loans | ACL—Loans | $ | 235 | $ | 153 | $ | 275 | $ | 11 | $ | 674 | ACL—Loans | $ | 235 | $ | 153 | $ | 275 | $ | 11 | $ | 674 | ||||||||||||
ACL—Lending commitments | ACL—Lending commitments | 411 | 51 | 15 | 7 | 484 | ACL—Lending commitments | 411 | 51 | 15 | 7 | 484 | ||||||||||||||||||||||
Total at December 31, 2022 | Total at December 31, 2022 | $ | 646 | $ | 204 | $ | 290 | $ | 18 | $ | 1,158 | Total at December 31, 2022 | $ | 646 | $ | 204 | $ | 290 | $ | 18 | $ | 1,158 | ||||||||||||
Gross charge-offs | Gross charge-offs | (1) | — | (69) | — | (70) | Gross charge-offs | (30) | — | (108) | (1) | (139) | ||||||||||||||||||||||
Provision for credit losses | Provision for credit losses | 53 | — | 136 | — | 189 | Provision for credit losses | 73 | 26 | 273 | 7 | 379 | ||||||||||||||||||||||
Other | Other | 2 | (1) | — | 2 | 3 | Other | (2) | (1) | (3) | — | (6) | ||||||||||||||||||||||
Total at March 31, 2023 | $ | 700 | $ | 203 | $ | 357 | $ | 20 | $ | 1,280 | ||||||||||||||||||||||||
Total at September 30, 2023 | Total at September 30, 2023 | $ | 687 | $ | 229 | $ | 452 | $ | 24 | $ | 1,392 | |||||||||||||||||||||||
ACL—Loans | ACL—Loans | $ | 265 | $ | 152 | $ | 335 | $ | 13 | $ | 765 | ACL—Loans | $ | 248 | $ | 154 | $ | 426 | $ | 17 | $ | 845 | ||||||||||||
ACL—Lending commitments | ACL—Lending commitments | 435 | 51 | 22 | 7 | 515 | ACL—Lending commitments | 439 | 75 | 26 | 7 | 547 |
At March 31, 2023 | At December 31, 2022 | At September 30, 2023 | At December 31, 2022 | |||||||||||||
Corporate | Corporate | 3.6 | % | 3.6 | % | Corporate | 3.5 | % | 3.6 | % | ||||||
Secured lending facilities | Secured lending facilities | 0.4 | % | 0.4 | % | Secured lending facilities | 0.4 | % | 0.4 | % | ||||||
Commercial real estate | Commercial real estate | 3.9 | % | 3.2 | % | Commercial real estate | 5.1 | % | 3.2 | % | ||||||
Securities-based lending and Other | Securities-based lending and Other | 0.4 | % | 0.4 | % | Securities-based lending and Other | 0.6 | % | 0.4 | % | ||||||
Total Institutional Securities loans | Total Institutional Securities loans | 1.4 | % | 1.3 | % | Total Institutional Securities loans | 1.5 | % | 1.3 | % |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||||||||
Contractual Years to Maturity | Contractual Years to Maturity | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | <1 | 1-5 | 5-15 | >15 | Total | $ in millions | <1 | 1-5 | 5-15 | >15 | Total | ||||||||||||||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | $ | 76,801 | $ | 9,789 | $ | 1,647 | $ | 137 | $ | 88,374 | Securities-based lending and Other loans | $ | 76,816 | $ | 8,488 | $ | 1,522 | $ | 137 | $ | 86,963 | ||||||||||||
Residential real estate loans | Residential real estate loans | 1 | 39 | 1,351 | 53,919 | 55,310 | Residential real estate loans | 1 | 80 | 1,292 | 57,543 | 58,916 | ||||||||||||||||||||||
Total loans, net of ACL | Total loans, net of ACL | $ | 76,802 | $ | 9,828 | $ | 2,998 | $ | 54,056 | $ | 143,684 | Total loans, net of ACL | $ | 76,817 | $ | 8,568 | $ | 2,814 | $ | 57,680 | $ | 145,879 | ||||||||||||
Lending commitments | Lending commitments | 12,985 | 4,492 | 32 | 333 | 17,842 | Lending commitments | 16,079 | 2,659 | 27 | 346 | 19,111 | ||||||||||||||||||||||
Total exposure | Total exposure | $ | 89,787 | $ | 14,320 | $ | 3,030 | $ | 54,389 | $ | 161,526 | Total exposure | $ | 92,896 | $ | 11,227 | $ | 2,841 | $ | 58,026 | $ | 164,990 |
At December 31, 2022 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | <1 | 1-5 | 5-15 | >15 | Total | ||||||||||||
Securities-based lending and Other loans | $ | 80,526 | $ | 9,371 | $ | 1,692 | $ | 140 | $ | 91,729 | |||||||
Residential real estate loans | 1 | 32 | 1,375 | 52,968 | 54,376 | ||||||||||||
Total loans, net of ACL | $ | 80,527 | $ | 9,403 | $ | 3,067 | $ | 53,108 | $ | 146,105 | |||||||
Lending commitments | 12,408 | 4,501 | 37 | 323 | 17,269 | ||||||||||||
Total exposure | $ | 92,935 | $ | 13,904 | $ | 3,104 | $ | 53,431 | $ | 163,374 |
35 |
Risk Disclosures |
At March 31, 2023 | At December 31, 2022 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Loans1 | LC | Total | Loans1 | LC | Total | $ in millions | Loans1 | LC1 | Total | Loans1 | LC1 | Total | ||||||||||||||||||||||||||||||||
Multifamily | Multifamily | $ | 1,925 | $ | 155 | $ | 2,080 | $ | 1,661 | $ | 142 | $ | 1,803 | |||||||||||||||||||||||||||||||||
Retail | Retail | 2,045 | 12 | 2,057 | 2,135 | 6 | 2,141 | |||||||||||||||||||||||||||||||||||||||
Office | Office | $ | 1,669 | $ | 1 | $ | 1,670 | $ | 1,675 | $ | 1 | $ | 1,676 | Office | 1,670 | 1 | 1,671 | 1,675 | 1 | 1,676 | ||||||||||||||||||||||||||
Industrial | Industrial | 330 | — | 330 | 330 | — | 330 | Industrial | 415 | — | 415 | 330 | — | 330 | ||||||||||||||||||||||||||||||||
Multifamily | 1,848 | 140 | 1,988 | 1,661 | 142 | 1,803 | ||||||||||||||||||||||||||||||||||||||||
Retail | 2,125 | 9 | 2,134 | 2,135 | 6 | 2,141 | ||||||||||||||||||||||||||||||||||||||||
Hotel | Hotel | 418 | — | 418 | 419 | — | 419 | Hotel | 411 | — | 411 | 419 | — | 419 | ||||||||||||||||||||||||||||||||
Other | Other | 185 | 10 | 195 | 183 | 10 | 193 | Other | 438 | 10 | 448 | 183 | 10 | 193 | ||||||||||||||||||||||||||||||||
Total | Total | $ | 6,575 | $ | 160 | $ | 6,735 | $ | 6,403 | $ | 159 | $ | 6,562 | Total | $ | 6,904 | $ | 178 | $ | 7,082 | $ | 6,403 | $ | 159 | $ | 6,562 |
$ in millions | |||||
ACL—Loans | $ | 165 | |||
ACL—Lending commitments | 20 | ||||
Total at December 31, 2022 | $ | 185 | |||
Gross charge-offs | |||||
Recoveries | 1 | ||||
Net (charge-offs) recoveries | (1) | ||||
Provision for credit losses | |||||
Total at | $ | ||||
ACL—Loans | $ | ||||
ACL—Lending commitments |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Institutional Securities | Institutional Securities | $ | 18,304 | $ | 16,591 | Institutional Securities | $ | 19,670 | $ | 16,591 | ||||||
Wealth Management | Wealth Management | 21,050 | 21,933 | Wealth Management | 23,029 | 21,933 | ||||||||||
Total | Total | $ | 39,354 | $ | 38,524 | Total | $ | 42,699 | $ | 38,524 |
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 March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||
At September 30, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||||||||||||||
Less than 1 year | Less than 1 year | $ | 2,071 | $ | 15,151 | $ | 32,023 | $ | 29,160 | $ | 9,933 | $ | 88,338 | Less than 1 year | $ | 2,018 | $ | 18,524 | $ | 40,635 | $ | 27,488 | $ | 8,951 | $ | 97,616 | ||||||||||||||
1-3 years | 1-3 years | 1,520 | 7,243 | 14,507 | 16,267 | 7,213 | 46,750 | 1-3 years | 1,359 | 11,520 | 19,873 | 14,941 | 8,006 | 55,699 | ||||||||||||||||||||||||||
3-5 years | 3-5 years | 633 | 6,542 | 7,117 | 8,750 | 3,196 | 26,238 | 3-5 years | 864 | 11,450 | 9,207 | 7,126 | 3,423 | 32,070 | ||||||||||||||||||||||||||
Over 5 years | Over 5 years | 3,959 | 39,743 | 38,447 | 37,361 | 6,011 | 125,521 | Over 5 years | 4,006 | 62,666 | 52,066 | 31,760 | 6,103 | 156,601 | ||||||||||||||||||||||||||
Total, gross | Total, gross | $ | 8,183 | $ | 68,679 | $ | 92,094 | $ | 91,538 | $ | 26,353 | $ | 286,847 | Total, gross | $ | 8,247 | $ | 104,160 | $ | 121,781 | $ | 81,315 | $ | 26,483 | $ | 341,986 | ||||||||||||||
Counterparty netting | Counterparty netting | (3,599) | (55,095) | (66,179) | (71,713) | (14,946) | (211,532) | Counterparty netting | (3,884) | (87,437) | (89,407) | (60,211) | (15,375) | (256,314) | ||||||||||||||||||||||||||
Cash and securities collateral | Cash and securities collateral | (2,929) | (11,078) | (22,797) | (13,729) | (5,456) | (55,989) | Cash and securities collateral | (2,234) | (14,725) | (28,196) | (14,445) | (6,368) | (65,968) | ||||||||||||||||||||||||||
Total, net | Total, net | $ | 1,655 | $ | 2,506 | $ | 3,118 | $ | 6,096 | $ | 5,951 | $ | 19,326 | Total, net | $ | 2,129 | $ | 1,998 | $ | 4,178 | $ | 6,659 | $ | 4,740 | $ | 19,704 |
Counterparty Credit Rating1 | ||||||||||||||||||||
$ in millions | AAA | AA | A | BBB | NIG | Total | ||||||||||||||
At December 31, 2022 | ||||||||||||||||||||
Less than 1 year | $ | 2,903 | $ | 18,166 | $ | 40,825 | $ | 32,373 | $ | 10,730 | $ | 104,997 | ||||||||
1-3 years | 1,818 | 8,648 | 17,113 | 19,365 | 6,974 | 53,918 | ||||||||||||||
3-5 years | 655 | 6,834 | 8,632 | 9,105 | 4,049 | 29,275 | ||||||||||||||
Over 5 years | 4,206 | 42,613 | 45,488 | 46,660 | 8,244 | 147,211 | ||||||||||||||
Total, gross | $ | 9,582 | $ | 76,261 | $ | 112,058 | $ | 107,503 | $ | 29,997 | $ | 335,401 | ||||||||
Counterparty netting | (4,037) | (60,451) | (79,334) | (85,786) | (17,415) | (247,023) | ||||||||||||||
Cash and securities collateral | (3,632) | (13,402) | (28,776) | (14,457) | (5,198) | (65,465) | ||||||||||||||
Total, net | $ | 1,913 | $ | 2,408 | $ | 3,948 | $ | 7,260 | $ | 7,384 | $ | 22,913 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Industry | Industry | Industry | ||||||||||||||
Financials | Financials | $ | 5,677 | $ | 6,294 | Financials | $ | 6,225 | $ | 6,294 | ||||||
Utilities | Utilities | 4,562 | 5,656 | Utilities | 4,155 | 5,656 | ||||||||||
Regional governments | Regional governments | 1,839 | 2,052 | Regional governments | 2,256 | 2,052 | ||||||||||
Energy | Energy | 1,480 | 2,851 | Energy | 1,222 | 2,851 | ||||||||||
Industrials | Industrials | 1,287 | 1,433 | Industrials | 1,186 | 1,433 | ||||||||||
Communications services | Communications services | 1,036 | 1,051 | Communications services | 1,013 | 1,051 | ||||||||||
Consumer discretionary | Consumer discretionary | 630 | 290 | |||||||||||||
Information technology | Information technology | 585 | 480 | |||||||||||||
Consumer staples | Consumer staples | 707 | 687 | Consumer staples | 553 | 687 | ||||||||||
Sovereign governments | Sovereign governments | 453 | 410 | |||||||||||||
Healthcare | Healthcare | 509 | 565 | Healthcare | 352 | 565 | ||||||||||
Information technology | 468 | 480 | ||||||||||||||
Consumer Discretionary | 453 | 290 | ||||||||||||||
Materials | Materials | 310 | 317 | Materials | 291 | 317 | ||||||||||
Insurance | Insurance | 191 | 185 | |||||||||||||
Not-for-profit organizations | Not-for-profit organizations | 214 | 204 | Not-for-profit organizations | 118 | 204 | ||||||||||
Insurance | 174 | 185 | ||||||||||||||
Sovereign governments | 162 | 410 | ||||||||||||||
Real estate | Real estate | 113 | 95 | Real estate | 83 | 95 | ||||||||||
Other | Other | 335 | 343 | Other | 391 | 343 | ||||||||||
Total | Total | $ | 19,326 | $ | 22,913 | Total | $ | 19,704 | $ | 22,913 |
$ in millions | $ in millions | United Kingdom | Germany | Japan | France | Australia | $ in millions | United Kingdom | France | Germany | Brazil | Japan | ||||||||||||||||||||||
Sovereign | Sovereign | Sovereign | ||||||||||||||||||||||||||||||||
Net inventory1 | Net inventory1 | $ | (419) | $ | (611) | $ | 300 | $ | 75 | $ | 132 | Net inventory1 | $ | (555) | $ | 959 | $ | (470) | $ | 3,449 | $ | (123) | ||||||||||||
Net counterparty exposure2 | Net counterparty exposure2 | 10 | 118 | 196 | 12 | 88 | Net counterparty exposure2 | 31 | 1 | 130 | — | 35 | ||||||||||||||||||||||
Exposure before hedges | Exposure before hedges | (409) | (493) | 496 | 87 | 220 | Exposure before hedges | (524) | 960 | (340) | 3,449 | (88) | ||||||||||||||||||||||
Hedges3 | Hedges3 | (56) | (273) | (187) | (6) | — | Hedges3 | (55) | (6) | (262) | (161) | (182) | ||||||||||||||||||||||
Net exposure | Net exposure | $ | (465) | $ | (766) | $ | 309 | $ | 81 | $ | 220 | Net exposure | $ | (579) | $ | 954 | $ | (602) | $ | 3,288 | $ | (270) | ||||||||||||
Non-sovereign | Non-sovereign | Non-sovereign | ||||||||||||||||||||||||||||||||
Net inventory1 | Net inventory1 | $ | 1,491 | $ | 190 | $ | 1,140 | $ | 17 | $ | 498 | Net inventory1 | $ | 1,635 | $ | 818 | $ | 983 | $ | 125 | $ | 910 | ||||||||||||
Net counterparty exposure2 | Net counterparty exposure2 | 9,992 | 3,819 | 4,572 | 3,487 | 881 | Net counterparty exposure2 | 7,597 | 3,016 | 2,201 | 403 | 3,919 | ||||||||||||||||||||||
Loans | Loans | 5,481 | 990 | 329 | 1,001 | 1,494 | Loans | 7,972 | 819 | 1,014 | 386 | 40 | ||||||||||||||||||||||
Lending commitments | Lending commitments | 6,760 | 4,108 | — | 2,742 | 1,084 | Lending commitments | 7,107 | 2,954 | 4,456 | 306 | — | ||||||||||||||||||||||
Exposure before hedges | Exposure before hedges | 23,724 | 9,107 | 6,041 | 7,247 | 3,957 | Exposure before hedges | 24,311 | 7,607 | 8,654 | 1,220 | 4,869 | ||||||||||||||||||||||
Hedges3 | Hedges3 | (2,026) | (1,706) | (625) | (2,210) | (297) | Hedges3 | (1,791) | (1,998) | (1,743) | (36) | (524) | ||||||||||||||||||||||
Net exposure | Net exposure | $ | 21,698 | $ | 7,401 | $ | 5,416 | $ | 5,037 | $ | 3,660 | Net exposure | $ | 22,520 | $ | 5,609 | $ | 6,911 | $ | 1,184 | $ | 4,345 | ||||||||||||
Total net exposure | Total net exposure | $ | 21,233 | $ | 6,635 | $ | 5,725 | $ | 5,118 | $ | 3,880 | Total net exposure | $ | 21,941 | $ | 6,563 | $ | 6,309 | $ | 4,472 | $ | 4,075 |
$ in millions | $ in millions | Brazil | China | India | Canada | Spain | $ in millions | China | Australia | Canada | Ireland | Spain | ||||||||||||||||||||||
Sovereign | Sovereign | Sovereign | ||||||||||||||||||||||||||||||||
Net inventory1 | Net inventory1 | $ | 2,555 | $ | 290 | $ | 1,356 | $ | 242 | $ | 141 | Net inventory1 | $ | 1,171 | $ | (1) | $ | 335 | $ | 153 | $ | (619) | ||||||||||||
Net counterparty exposure2 | Net counterparty exposure2 | 5 | 197 | — | 67 | 51 | Net counterparty exposure2 | 114 | 153 | 66 | — | 1 | ||||||||||||||||||||||
Exposure before hedges | Exposure before hedges | 2,560 | 487 | 1,356 | 309 | 192 | Exposure before hedges | 1,285 | 152 | 401 | 153 | (618) | ||||||||||||||||||||||
Hedges3 | Hedges3 | (195) | (65) | — | — | (8) | Hedges3 | (65) | — | — | — | (8) | ||||||||||||||||||||||
Net exposure | Net exposure | $ | 2,365 | $ | 422 | $ | 1,356 | $ | 309 | $ | 184 | Net exposure | $ | 1,220 | $ | 152 | $ | 401 | $ | 153 | $ | (626) | ||||||||||||
Non-sovereign | Non-sovereign | Non-sovereign | ||||||||||||||||||||||||||||||||
Net inventory1 | Net inventory1 | $ | 167 | $ | 2,048 | $ | 1,028 | $ | 510 | $ | 305 | Net inventory1 | $ | 1,545 | $ | 509 | $ | 456 | $ | 665 | $ | 296 | ||||||||||||
Net counterparty exposure2 | Net counterparty exposure2 | 574 | 188 | 1,006 | 1,094 | 375 | Net counterparty exposure2 | 158 | 747 | 937 | 385 | 401 | ||||||||||||||||||||||
Loans | Loans | 308 | 568 | 135 | 382 | 2,171 | Loans | 470 | 1,623 | 368 | 1,577 | 1,935 | ||||||||||||||||||||||
Lending commitments | Lending commitments | 404 | 652 | — | 1,381 | 857 | Lending commitments | 664 | 1,009 | 1,384 | 457 | 1,147 | ||||||||||||||||||||||
Exposure before hedges | Exposure before hedges | 1,453 | 3,456 | 2,169 | 3,367 | 3,708 | Exposure before hedges | 2,837 | 3,888 | 3,145 | 3,084 | 3,779 | ||||||||||||||||||||||
Hedges3 | Hedges3 | (42) | (125) | — | (183) | (584) | Hedges3 | (86) | (411) | (57) | (4) | (334) | ||||||||||||||||||||||
Net exposure | Net exposure | $ | 1,411 | $ | 3,331 | $ | 2,169 | $ | 3,184 | $ | 3,124 | Net exposure | $ | 2,751 | $ | 3,477 | $ | 3,088 | $ | 3,080 | $ | 3,445 | ||||||||||||
Total net exposure | Total net exposure | $ | 3,776 | $ | 3,753 | $ | 3,525 | $ | 3,493 | $ | 3,308 | Total net exposure | $ | 3,971 | $ | 3,629 | $ | 3,489 | $ | 3,233 | $ | 2,819 |
Risk Disclosures |
$ in millions | At 2023 | |||||||
Country of Risk | Collateral2 | |||||||
United Kingdom | U.K., U.S. and | $ | ||||||
Other |
/s/ Deloitte & Touche LLP | ||
New York, New York | ||
Consolidated Income Statement (Unaudited) |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
in millions, except per share data | in millions, except per share data | 2023 | 2022 | in millions, except per share data | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues | Revenues | Revenues | ||||||||||||||||||||||||||
Investment banking | Investment banking | $ | 1,330 | $ | 1,758 | Investment banking | $ | 1,048 | $ | 1,373 | $ | 3,533 | $ | 4,281 | ||||||||||||||
Trading | Trading | 4,477 | 3,983 | Trading | 3,679 | 3,331 | 11,958 | 10,911 | ||||||||||||||||||||
Investments | Investments | 145 | 75 | Investments | 144 | (168) | 384 | (70) | ||||||||||||||||||||
Commissions and fees | Commissions and fees | 1,239 | 1,416 | Commissions and fees | 1,098 | 1,133 | 3,427 | 3,769 | ||||||||||||||||||||
Asset management | Asset management | 4,728 | 5,119 | Asset management | 5,031 | 4,744 | 14,576 | 14,775 | ||||||||||||||||||||
Other | Other | 252 | 234 | Other | 296 | 63 | 1,036 | 245 | ||||||||||||||||||||
Total non-interest revenues | Total non-interest revenues | 12,171 | 12,585 | Total non-interest revenues | 11,296 | 10,476 | 34,914 | 33,911 | ||||||||||||||||||||
Interest income | Interest income | 10,870 | 2,650 | Interest income | 13,305 | 6,101 | 36,223 | 12,363 | ||||||||||||||||||||
Interest expense | Interest expense | 8,524 | 434 | Interest expense | 11,328 | 3,591 | 29,890 | 5,355 | ||||||||||||||||||||
Net interest | Net interest | 2,346 | 2,216 | Net interest | 1,977 | 2,510 | 6,333 | 7,008 | ||||||||||||||||||||
Net revenues | Net revenues | 14,517 | 14,801 | Net revenues | 13,273 | 12,986 | 41,247 | 40,919 | ||||||||||||||||||||
Provision for credit losses | Provision for credit losses | 234 | 57 | Provision for credit losses | 134 | 35 | 529 | 193 | ||||||||||||||||||||
Non-interest expenses | Non-interest expenses | Non-interest expenses | ||||||||||||||||||||||||||
Compensation and benefits | Compensation and benefits | 6,410 | 6,274 | Compensation and benefits | 5,935 | 5,614 | 18,607 | 17,438 | ||||||||||||||||||||
Brokerage, clearing and exchange fees | Brokerage, clearing and exchange fees | 881 | 882 | Brokerage, clearing and exchange fees | 855 | 847 | 2,611 | 2,607 | ||||||||||||||||||||
Information processing and communications | Information processing and communications | 915 | 829 | Information processing and communications | 947 | 874 | 2,788 | 2,560 | ||||||||||||||||||||
Professional services | Professional services | 710 | 705 | Professional services | 759 | 755 | 2,236 | 2,217 | ||||||||||||||||||||
Occupancy and equipment | Occupancy and equipment | 440 | 427 | Occupancy and equipment | 456 | 429 | 1,367 | 1,286 | ||||||||||||||||||||
Marketing and business development | Marketing and business development | 247 | 175 | Marketing and business development | 191 | 215 | 674 | 610 | ||||||||||||||||||||
Other | Other | 920 | 864 | Other | 851 | 829 | 2,718 | 2,713 | ||||||||||||||||||||
Total non-interest expenses | Total non-interest expenses | 10,523 | 10,156 | Total non-interest expenses | 9,994 | 9,563 | 31,001 | 29,431 | ||||||||||||||||||||
Income before provision for income taxes | Income before provision for income taxes | 3,760 | 4,588 | Income before provision for income taxes | 3,145 | 3,388 | 9,717 | 11,295 | ||||||||||||||||||||
Provision for income taxes | Provision for income taxes | 727 | 873 | Provision for income taxes | 710 | 726 | 2,028 | 2,382 | ||||||||||||||||||||
Net income | Net income | $ | 3,033 | $ | 3,715 | Net income | $ | 2,435 | $ | 2,662 | $ | 7,689 | $ | 8,913 | ||||||||||||||
Net income applicable to noncontrolling interests | Net income applicable to noncontrolling interests | 53 | 49 | Net income applicable to noncontrolling interests | 27 | 30 | 119 | 120 | ||||||||||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | $ | 2,980 | $ | 3,666 | Net income applicable to Morgan Stanley | $ | 2,408 | $ | 2,632 | $ | 7,570 | $ | 8,793 | ||||||||||||||
Preferred stock dividends | Preferred stock dividends | 144 | 124 | Preferred stock dividends | 146 | 138 | 423 | 366 | ||||||||||||||||||||
Earnings applicable to Morgan Stanley common shareholders | Earnings applicable to Morgan Stanley common shareholders | $ | 2,836 | $ | 3,542 | Earnings applicable to Morgan Stanley common shareholders | $ | 2,262 | $ | 2,494 | $ | 7,147 | $ | 8,427 | ||||||||||||||
Earnings per common share | Earnings per common share | Earnings per common share | ||||||||||||||||||||||||||
Basic | Basic | $ | 1.72 | $ | 2.04 | Basic | $ | 1.39 | $ | 1.49 | $ | 4.37 | $ | 4.95 | ||||||||||||||
Diluted | Diluted | $ | 1.70 | $ | 2.02 | Diluted | $ | 1.38 | $ | 1.47 | $ | 4.33 | $ | 4.88 | ||||||||||||||
Average common shares outstanding | Average common shares outstanding | Average common shares outstanding | ||||||||||||||||||||||||||
Basic | Basic | 1,645 | 1,733 | Basic | 1,624 | 1,674 | 1,635 | 1,704 | ||||||||||||||||||||
Diluted | Diluted | 1,663 | 1,755 | Diluted | 1,643 | 1,697 | 1,653 | 1,725 |
Three Months Ended March 31, | ||||||||||||||
$ in millions | 2023 | 2022 | ||||||||||||
Net income | $ | 3,033 | $ | 3,715 | ||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Foreign currency translation adjustments | 20 | (105) | ||||||||||||
Change in net unrealized gains (losses) on available-for-sale securities | 512 | (2,395) | ||||||||||||
Pension and other | (1) | 5 | ||||||||||||
Change in net debt valuation adjustment | (15) | 660 | ||||||||||||
Net change in cash flow hedges | 7 | — | ||||||||||||
Total other comprehensive income (loss) | $ | 523 | $ | (1,835) | ||||||||||
Comprehensive income | $ | 3,556 | $ | 1,880 | ||||||||||
Net income applicable to noncontrolling interests | 53 | 49 | ||||||||||||
Other comprehensive income (loss) applicable to noncontrolling interests | (19) | (35) | ||||||||||||
Comprehensive income applicable to Morgan Stanley | $ | 3,522 | $ | 1,866 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net income | $ | 2,435 | $ | 2,662 | $ | 7,689 | $ | 8,913 | ||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Foreign currency translation adjustments | (149) | (268) | (240) | (661) | ||||||||||
Change in net unrealized gains (losses) on available-for-sale securities | (366) | (1,307) | 125 | (4,778) | ||||||||||
Pension and other | (1) | 5 | (3) | 13 | ||||||||||
Change in net debt valuation adjustment | (414) | 816 | (960) | 2,628 | ||||||||||
Net change in cash flow hedges | (3) | — | (16) | — | ||||||||||
Total other comprehensive income (loss) | $ | (933) | $ | (754) | $ | (1,094) | $ | (2,798) | ||||||
Comprehensive income | $ | 1,502 | $ | 1,908 | $ | 6,595 | $ | 6,115 | ||||||
Net income applicable to noncontrolling interests | 27 | 30 | 119 | 120 | ||||||||||
Other comprehensive income (loss) applicable to noncontrolling interests | (31) | (17) | (145) | (142) | ||||||||||
Comprehensive income applicable to Morgan Stanley | $ | 1,506 | $ | 1,895 | $ | 6,621 | $ | 6,137 |
September 2023 Form 10-Q | 40 | See Notes to Consolidated Financial Statements |
Consolidated Balance Sheet |
$ in millions, except share data | $ in millions, except share data | (Unaudited) At March 31, 2023 | At December 31, 2022 | $ in millions, except share data | (Unaudited) At September 30, 2023 | At December 31, 2022 | ||||||||||
Assets | Assets | Assets | ||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 111,258 | $ | 128,127 | Cash and cash equivalents | $ | 108,401 | $ | 128,127 | ||||||
Trading assets at fair value ($127,205 and $124,411 were pledged to various parties) | 320,301 | 301,315 | ||||||||||||||
Trading assets at fair value ($137,504 and $124,411 were pledged to various parties) | Trading assets at fair value ($137,504 and $124,411 were pledged to various parties) | 346,685 | 301,315 | |||||||||||||
Investment securities: | Investment securities: | Investment securities: | ||||||||||||||
Available-for-sale at fair value (amortized cost of $88,738 and $89,772) | 83,932 | 84,297 | ||||||||||||||
Held-to-maturity (fair value of $64,419 and $65,006) | 74,012 | 75,634 | ||||||||||||||
Securities purchased under agreements to resell (includes $8 and $8 at fair value) | 121,885 | 113,907 | ||||||||||||||
Available-for-sale at fair value (amortized cost of $81,573 and $89,772) | Available-for-sale at fair value (amortized cost of $81,573 and $89,772) | 76,261 | 84,297 | |||||||||||||
Held-to-maturity (fair value of $58,324 and $65,006) | Held-to-maturity (fair value of $58,324 and $65,006) | 70,705 | 75,634 | |||||||||||||
Securities purchased under agreements to resell (includes $— and $8 at fair value) | Securities purchased under agreements to resell (includes $— and $8 at fair value) | 101,569 | 113,907 | |||||||||||||
Securities borrowed | Securities borrowed | 146,216 | 133,374 | Securities borrowed | 120,916 | 133,374 | ||||||||||
Customer and other receivables | Customer and other receivables | 74,095 | 78,540 | Customer and other receivables | 76,495 | 78,540 | ||||||||||
Loans: | Loans: | Loans: | ||||||||||||||
Held for investment (net of allowance for credit losses of $970 and $839) | 199,550 | 198,997 | ||||||||||||||
Held for investment (net of allowance for credit losses of $1,157 and $839) | Held for investment (net of allowance for credit losses of $1,157 and $839) | 202,742 | 198,997 | |||||||||||||
Held for sale | Held for sale | 15,146 | 14,788 | Held for sale | 14,230 | 14,788 | ||||||||||
Goodwill | Goodwill | 16,657 | 16,652 | Goodwill | 16,699 | 16,652 | ||||||||||
Intangible assets (net of accumulated amortization of $4,404 and $4,253) | 7,470 | 7,618 | ||||||||||||||
Intangible assets (net of accumulated amortization of $4,704 and $4,253) | Intangible assets (net of accumulated amortization of $4,704 and $4,253) | 7,204 | 7,618 | |||||||||||||
Other assets | Other assets | 29,382 | 26,982 | Other assets | 27,106 | 26,982 | ||||||||||
Total assets | Total assets | $ | 1,199,904 | $ | 1,180,231 | Total assets | $ | 1,169,013 | $ | 1,180,231 | ||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||
Deposits (includes $5,042 and $4,796 at fair value) | $ | 347,523 | $ | 356,646 | ||||||||||||
Deposits (includes $6,318 and $4,796 at fair value) | Deposits (includes $6,318 and $4,796 at fair value) | $ | 345,458 | $ | 356,646 | |||||||||||
Trading liabilities at fair value | Trading liabilities at fair value | 170,764 | 154,438 | Trading liabilities at fair value | 150,298 | 154,438 | ||||||||||
Securities sold under agreements to repurchase (includes $872 and $864 at fair value) | 60,491 | 62,534 | ||||||||||||||
Securities sold under agreements to repurchase (includes $1,002 and $864 at fair value) | Securities sold under agreements to repurchase (includes $1,002 and $864 at fair value) | 76,661 | 62,534 | |||||||||||||
Securities loaned | Securities loaned | 15,588 | 15,679 | Securities loaned | 13,064 | 15,679 | ||||||||||
Other secured financings (includes $5,005 and $4,550 at fair value) | 8,670 | 8,158 | ||||||||||||||
Other secured financings (includes $7,012 and $4,550 at fair value) | Other secured financings (includes $7,012 and $4,550 at fair value) | 9,668 | 8,158 | |||||||||||||
Customer and other payables | Customer and other payables | 220,700 | 216,134 | Customer and other payables | 200,479 | 216,134 | ||||||||||
Other liabilities and accrued expenses | Other liabilities and accrued expenses | 24,032 | 27,353 | Other liabilities and accrued expenses | 26,034 | 27,353 | ||||||||||
Borrowings (includes $86,422 and $78,720 at fair value) | 250,182 | 238,058 | ||||||||||||||
Borrowings (includes $86,556 and $78,720 at fair value) | Borrowings (includes $86,556 and $78,720 at fair value) | 247,193 | 238,058 | |||||||||||||
Total liabilities | Total liabilities | 1,097,950 | 1,079,000 | Total liabilities | 1,068,855 | 1,079,000 | ||||||||||
Commitments and contingent liabilities (see Note 13) | Commitments and contingent liabilities (see Note 13) | Commitments and contingent liabilities (see Note 13) | ||||||||||||||
Equity | Equity | Equity | ||||||||||||||
Morgan Stanley shareholders’ equity: | Morgan Stanley shareholders’ equity: | Morgan Stanley shareholders’ equity: | ||||||||||||||
Preferred stock | Preferred stock | 8,750 | 8,750 | Preferred stock | 8,750 | 8,750 | ||||||||||
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: 1,670,318,320 and 1,675,487,409 | 20 | 20 | ||||||||||||||
Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,642,250,165 and 1,675,487,409 | Shares authorized: 3,500,000,000; Shares issued: 2,038,893,979; Shares outstanding: 1,642,250,165 and 1,675,487,409 | 20 | 20 | |||||||||||||
Additional paid-in capital | Additional paid-in capital | 28,856 | 29,339 | Additional paid-in capital | 29,595 | 29,339 | ||||||||||
Retained earnings | Retained earnings | 96,392 | 94,862 | Retained earnings | 98,007 | 94,862 | ||||||||||
Employee stock trusts | Employee stock trusts | 5,343 | 4,881 | Employee stock trusts | 5,244 | 4,881 | ||||||||||
Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) | (5,711) | (6,253) | Accumulated other comprehensive income (loss) | (7,202) | (6,253) | ||||||||||
Common stock held in treasury at cost, $0.01 par value (368,575,659 and 363,406,570 shares) | (27,481) | (26,577) | ||||||||||||||
Common stock held in treasury at cost, $0.01 par value (396,643,814 and 363,406,570 shares) | Common stock held in treasury at cost, $0.01 par value (396,643,814 and 363,406,570 shares) | (29,959) | (26,577) | |||||||||||||
Common stock issued to employee stock trusts | Common stock issued to employee stock trusts | (5,343) | (4,881) | Common stock issued to employee stock trusts | (5,244) | (4,881) | ||||||||||
Total Morgan Stanley shareholders’ equity | Total Morgan Stanley shareholders’ equity | 100,826 | 100,141 | Total Morgan Stanley shareholders’ equity | 99,211 | 100,141 | ||||||||||
Noncontrolling interests | Noncontrolling interests | 1,128 | 1,090 | Noncontrolling interests | 947 | 1,090 | ||||||||||
Total equity | Total equity | 101,954 | 101,231 | Total equity | 100,158 | 101,231 | ||||||||||
Total liabilities and equity | Total liabilities and equity | $ | 1,199,904 | $ | 1,180,231 | Total liabilities and equity | $ | 1,169,013 | $ | 1,180,231 |
See Notes to Consolidated Financial Statements | 41 | September 2023 Form 10-Q |
Consolidated Statement of Changes in Total Equity (Unaudited) |
Three Months Ended March 31, | Three Months Ended September 30, 2023 | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Preferred Stock | Preferred Stock | Preferred Stock | ||||||||||||||||||||||||||
Beginning and ending balance | $ | 8,750 | $ | 7,750 | ||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 8,750 | $ | 7,750 | $ | 8,750 | $ | 7,750 | |||||||||||||||||||
Issuance of preferred stock | Issuance of preferred stock | — | 1,000 | — | 1,000 | |||||||||||||||||||||||
Ending balance | Ending balance | 8,750 | 8,750 | 8,750 | 8,750 | |||||||||||||||||||||||
Common Stock | Common Stock | Common Stock | ||||||||||||||||||||||||||
Beginning and ending balance | Beginning and ending balance | 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 | 29,339 | 28,841 | Beginning balance | 29,245 | 28,394 | 29,339 | 28,841 | ||||||||||||||||||||
Share-based award activity | Share-based award activity | (483) | (834) | Share-based award activity | 350 | 505 | 256 | 57 | ||||||||||||||||||||
Issuance of preferred stock | Issuance of preferred stock | — | (6) | — | (6) | |||||||||||||||||||||||
Other net increases (decreases) | Other net increases (decreases) | — | — | — | 1 | |||||||||||||||||||||||
Ending balance | Ending balance | 28,856 | 28,007 | Ending balance | 29,595 | 28,893 | 29,595 | 28,893 | ||||||||||||||||||||
Retained Earnings | Retained Earnings | Retained Earnings | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | 94,862 | 89,432 | Beginning balance | 97,151 | 92,889 | 94,862 | 89,432 | ||||||||||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | 2,980 | 3,666 | Net income applicable to Morgan Stanley | 2,408 | 2,632 | 7,570 | 8,793 | ||||||||||||||||||||
Preferred stock dividends1 | Preferred stock dividends1 | (144) | (124) | Preferred stock dividends1 | (146) | (138) | (423) | (366) | ||||||||||||||||||||
Common stock dividends1 | Common stock dividends1 | (1,305) | (1,252) | Common stock dividends1 | (1,404) | (1,329) | (4,001) | (3,802) | ||||||||||||||||||||
Other net increases (decreases) | Other net increases (decreases) | (1) | — | Other net increases (decreases) | (2) | 1 | (1) | (2) | ||||||||||||||||||||
Ending balance | Ending balance | 96,392 | 91,722 | Ending balance | 98,007 | 94,055 | 98,007 | 94,055 | ||||||||||||||||||||
Employee Stock Trusts | Employee Stock Trusts | Employee Stock Trusts | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | 4,881 | 3,955 | Beginning balance | 5,258 | 4,900 | 4,881 | 3,955 | ||||||||||||||||||||
Share-based award activity | Share-based award activity | 462 | 1,020 | Share-based award activity | (14) | (40) | 363 | 905 | ||||||||||||||||||||
Ending balance | Ending balance | 5,343 | 4,975 | Ending balance | 5,244 | 4,860 | 5,244 | 4,860 | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | (6,253) | (3,102) | Beginning balance | (6,300) | (5,021) | (6,253) | (3,102) | ||||||||||||||||||||
Net change in Accumulated other comprehensive income (loss) | Net change in Accumulated other comprehensive income (loss) | 542 | (1,800) | Net change in Accumulated other comprehensive income (loss) | (902) | (737) | (949) | (2,656) | ||||||||||||||||||||
Ending balance | Ending balance | (5,711) | (4,902) | Ending balance | (7,202) | (5,758) | (7,202) | (5,758) | ||||||||||||||||||||
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 | (26,577) | (17,500) | Beginning balance | (28,480) | (22,436) | (26,577) | (17,500) | ||||||||||||||||||||
Share-based award activity | Share-based award activity | 1,304 | 1,485 | Share-based award activity | 77 | 95 | 1,479 | 1,677 | ||||||||||||||||||||
Repurchases of common stock and employee tax withholdings | Repurchases of common stock and employee tax withholdings | (2,208) | (3,681) | Repurchases of common stock and employee tax withholdings | (1,556) | (2,608) | (4,861) | (9,126) | ||||||||||||||||||||
Ending balance | Ending balance | (27,481) | (19,696) | Ending balance | (29,959) | (24,949) | (29,959) | (24,949) | ||||||||||||||||||||
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 | (4,881) | (3,955) | Beginning balance | (5,258) | (4,900) | (4,881) | (3,955) | ||||||||||||||||||||
Share-based award activity | Share-based award activity | (462) | (1,020) | Share-based award activity | 14 | 40 | (363) | (905) | ||||||||||||||||||||
Ending balance | Ending balance | (5,343) | (4,975) | Ending balance | (5,244) | (4,860) | (5,244) | (4,860) | ||||||||||||||||||||
Noncontrolling Interests | Noncontrolling Interests | Noncontrolling Interests | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | 1,090 | 1,157 | Beginning balance | 975 | 1,066 | 1,090 | 1,157 | ||||||||||||||||||||
Net income applicable to noncontrolling interests | Net income applicable to noncontrolling interests | 53 | 49 | Net income applicable to noncontrolling interests | 27 | 30 | 119 | 120 | ||||||||||||||||||||
Net change in Accumulated other comprehensive income (loss) applicable to noncontrolling interests | Net change in Accumulated other comprehensive income (loss) applicable to noncontrolling interests | (19) | (35) | Net change in Accumulated other comprehensive income (loss) applicable to noncontrolling interests | (31) | (17) | (145) | (142) | ||||||||||||||||||||
Other net increases (decreases) | Other net increases (decreases) | 4 | 3 | Other net increases (decreases) | (24) | (1) | (117) | (57) | ||||||||||||||||||||
Ending balance | Ending balance | 1,128 | 1,174 | Ending balance | 947 | 1,078 | 947 | 1,078 | ||||||||||||||||||||
Total Equity | Total Equity | $ | 101,954 | $ | 104,075 | Total Equity | $ | 100,158 | $ | 102,089 | $ | 100,158 | $ | 102,089 |
September 2023 Form 10-Q | 42 | See Notes to Consolidated Financial Statements |
Consolidated Cash Flow Statement (Unaudited) |
Three Months Ended March 31, | Nine Months Ended September 30, | |||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | ||||||||||
Cash flows from operating activities | Cash flows from operating activities | Cash flows from operating activities | ||||||||||||||
Net income | Net income | $ | 3,033 | $ | 3,715 | Net income | $ | 7,689 | $ | 8,913 | ||||||
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 | 558 | 431 | Stock-based compensation expense | 1,348 | 1,377 | ||||||||||
Depreciation and amortization | Depreciation and amortization | 940 | 942 | Depreciation and amortization | 2,850 | 2,791 | ||||||||||
Provision for credit losses | Provision for credit losses | 234 | 57 | Provision for credit losses | 529 | 193 | ||||||||||
Other operating adjustments | Other operating adjustments | 66 | 51 | Other operating adjustments | 44 | 508 | ||||||||||
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 | 2,582 | 5,069 | Trading assets, net of Trading liabilities | (53,171) | (23,285) | ||||||||||
Securities borrowed | Securities borrowed | (12,842) | (21,282) | Securities borrowed | 12,458 | (6,765) | ||||||||||
Securities loaned | Securities loaned | (91) | 1,923 | Securities loaned | (2,615) | 798 | ||||||||||
Customer and other receivables and other assets | Customer and other receivables and other assets | 4,899 | 1,227 | Customer and other receivables and other assets | 3,884 | 7,966 | ||||||||||
Customer and other payables and other liabilities | Customer and other payables and other liabilities | 777 | 17,994 | Customer and other payables and other liabilities | (15,265) | 8,283 | ||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | (7,978) | (7,768) | Securities purchased under agreements to resell | 12,338 | 8,875 | ||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | (2,043) | (2,120) | Securities sold under agreements to repurchase | 14,127 | (2,055) | ||||||||||
Net cash provided by (used for) operating activities | Net cash provided by (used for) operating activities | (9,865) | 239 | Net cash provided by (used for) operating activities | (15,784) | 7,599 | ||||||||||
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 | Other assets—Premises, equipment and software | (719) | (652) | Other assets—Premises, equipment and software | (2,483) | (2,308) | ||||||||||
Changes in loans, net | Changes in loans, net | (822) | (7,479) | Changes in loans, net | (4,186) | (23,280) | ||||||||||
AFS securities1: | ||||||||||||||||
AFS securities: | AFS securities: | |||||||||||||||
Purchases | Purchases | (3,475) | (14,125) | Purchases | (9,522) | (22,636) | ||||||||||
Proceeds from sales | Proceeds from sales | 1,466 | 18,469 | Proceeds from sales | 5,315 | 21,922 | ||||||||||
Proceeds from paydowns and maturities | Proceeds from paydowns and maturities | 3,460 | 4,301 | Proceeds from paydowns and maturities | 12,017 | 11,682 | ||||||||||
HTM securities1: | ||||||||||||||||
HTM securities: | HTM securities: | |||||||||||||||
Purchases | Purchases | — | (3,334) | Purchases | — | (5,231) | ||||||||||
Proceeds from paydowns and maturities | Proceeds from paydowns and maturities | 1,617 | 3,102 | Proceeds from paydowns and maturities | 4,922 | 7,837 | ||||||||||
Other investing activities | Other investing activities | (2,568) | (124) | Other investing activities | (346) | (516) | ||||||||||
Net cash provided by (used for) investing activities | Net cash provided by (used for) investing activities | (1,041) | 158 | Net cash provided by (used for) investing activities | 5,717 | (12,530) | ||||||||||
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 | 356 | (636) | Other secured financings | 146 | (1,352) | ||||||||||
Deposits | Deposits | (9,084) | 5,834 | Deposits | (11,188) | (16,816) | ||||||||||
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 | 21,219 | 20,284 | Proceeds from issuance of Borrowings | 60,916 | 54,283 | ||||||||||
Payments for: | Payments for: | Payments for: | ||||||||||||||
Borrowings | Borrowings | (15,201) | (11,094) | Borrowings | (48,847) | (27,019) | ||||||||||
Repurchases of common stock and employee tax withholdings | Repurchases of common stock and employee tax withholdings | (2,205) | (3,681) | Repurchases of common stock and employee tax withholdings | (4,836) | (9,126) | ||||||||||
Cash dividends | Cash dividends | (1,406) | (1,314) | Cash dividends | (4,286) | (4,023) | ||||||||||
Other financing activities | Other financing activities | 33 | (102) | Other financing activities | (325) | (202) | ||||||||||
Net cash provided by (used for) financing activities | Net cash provided by (used for) financing activities | (6,288) | 9,291 | Net cash provided by (used for) financing activities | (8,420) | (3,261) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | Effect of exchange rate changes on cash and cash equivalents | 325 | (1,327) | Effect of exchange rate changes on cash and cash equivalents | (1,239) | (7,837) | ||||||||||
Net increase (decrease) in cash and cash equivalents | Net increase (decrease) in cash and cash equivalents | (16,869) | 8,361 | Net increase (decrease) in cash and cash equivalents | (19,726) | (16,029) | ||||||||||
Cash and cash equivalents, at beginning of period | Cash and cash equivalents, at beginning of period | 128,127 | 127,725 | Cash and cash equivalents, at beginning of period | 128,127 | 127,725 | ||||||||||
Cash and cash equivalents, at end of period | Cash and cash equivalents, at end of period | $ | 111,258 | $ | 136,086 | Cash and cash equivalents, at end of period | $ | 108,401 | $ | 111,696 | ||||||
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 | $ | 8,912 | $ | 623 | Interest | $ | 30,299 | $ | 4,339 | ||||||
Income taxes, net of refunds | Income taxes, net of refunds | 307 | 383 | Income taxes, net of refunds | 1,248 | 2,805 |
See Notes to Consolidated Financial Statements | 43 | September 2023 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
44 |
Notes to Consolidated Financial Statements (Unaudited) |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Cash and due from banks | Cash and due from banks | $ | 5,336 | $ | 5,409 | Cash and due from banks | $ | 7,029 | $ | 5,409 | ||||||
Interest bearing deposits with banks | Interest bearing deposits with banks | 105,922 | 122,718 | Interest bearing deposits with banks | 101,372 | 122,718 | ||||||||||
Total Cash and cash equivalents | Total Cash and cash equivalents | $ | 111,258 | $ | 128,127 | Total Cash and cash equivalents | $ | 108,401 | $ | 128,127 | ||||||
Restricted cash | Restricted cash | $ | 33,229 | $ | 35,380 | Restricted cash | $ | 28,638 | $ | 35,380 |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | $ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||||||||||||
Assets at fair value | Assets at fair value | Assets at fair value | ||||||||||||||||||||||||||||||||
Trading assets: | Trading assets: | Trading assets: | ||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | U.S. Treasury and agency securities | $ | 53,525 | $ | 40,345 | $ | 1 | $ | — | $ | 93,871 | U.S. Treasury and agency securities | $ | 63,418 | $ | 36,553 | $ | — | $ | — | $ | 99,971 | ||||||||||||
Other sovereign government obligations | Other sovereign government obligations | 29,842 | 5,785 | 196 | — | 35,823 | Other sovereign government obligations | 36,432 | 6,050 | 94 | — | 42,576 | ||||||||||||||||||||||
State and municipal securities | State and municipal securities | — | 1,685 | 3 | — | 1,688 | State and municipal securities | — | 1,153 | 112 | — | 1,265 | ||||||||||||||||||||||
MABS | MABS | — | 1,540 | 454 | — | 1,994 | MABS | — | 1,499 | 536 | — | 2,035 | ||||||||||||||||||||||
Loans and lending commitments2 | Loans and lending commitments2 | — | 5,974 | 2,057 | — | 8,031 | Loans and lending commitments2 | — | 5,946 | 2,039 | — | 7,985 | ||||||||||||||||||||||
Corporate and other debt | Corporate and other debt | — | 27,804 | 2,243 | — | 30,047 | Corporate and other debt | — | 29,292 | 2,463 | — | 31,755 | ||||||||||||||||||||||
Corporate equities3 | 97,102 | 944 | 144 | — | 98,190 | |||||||||||||||||||||||||||||
Corporate equities3,5 | Corporate equities3,5 | 104,786 | 676 | 195 | — | 105,657 | ||||||||||||||||||||||||||||
Derivative and other contracts: | Derivative and other contracts: | Derivative and other contracts: | ||||||||||||||||||||||||||||||||
Interest rate | Interest rate | 5,112 | 153,365 | 647 | — | 159,124 | Interest rate | 7,172 | 197,954 | 524 | — | 205,650 | ||||||||||||||||||||||
Credit | Credit | — | 9,437 | 356 | — | 9,793 | Credit | — | 9,471 | 448 | — | 9,919 | ||||||||||||||||||||||
Foreign exchange | Foreign exchange | 64 | 83,371 | 180 | — | 83,615 | Foreign exchange | 23 | 95,172 | 83 | — | 95,278 | ||||||||||||||||||||||
Equity | Equity | 1,900 | 46,948 | 307 | — | 49,155 | Equity | 1,807 | 46,557 | 607 | — | 48,971 | ||||||||||||||||||||||
Commodity and other | Commodity and other | 4,184 | 14,300 | 3,546 | — | 22,030 | Commodity and other | 2,075 | 12,334 | 2,910 | — | 17,319 | ||||||||||||||||||||||
Netting1 | Netting1 | (10,169) | (233,264) | (1,103) | (38,758) | (283,294) | Netting1 | (7,953) | (280,170) | (1,023) | (42,600) | (331,746) | ||||||||||||||||||||||
Total derivative and other contracts | Total derivative and other contracts | 1,091 | 74,157 | 3,933 | (38,758) | 40,423 | Total derivative and other contracts | 3,124 | 81,318 | 3,549 | (42,600) | 45,391 | ||||||||||||||||||||||
Investments4 | 795 | 711 | 955 | — | 2,461 | |||||||||||||||||||||||||||||
Investments4,5 | Investments4,5 | 624 | 646 | 934 | — | 2,204 | ||||||||||||||||||||||||||||
Physical commodities | Physical commodities | — | 2,349 | — | — | 2,349 | Physical commodities | — | 2,381 | — | — | 2,381 | ||||||||||||||||||||||
Total trading assets4 | Total trading assets4 | 182,355 | 161,294 | 9,986 | (38,758) | 314,877 | Total trading assets4 | 208,384 | 165,514 | 9,922 | (42,600) | 341,220 | ||||||||||||||||||||||
Investment securities—AFS | Investment securities—AFS | 53,047 | 30,885 | — | — | 83,932 | Investment securities—AFS | 46,572 | 29,654 | 35 | — | 76,261 | ||||||||||||||||||||||
Securities purchased under agreements to resell | — | 8 | — | — | 8 | |||||||||||||||||||||||||||||
Total assets at fair value | Total assets at fair value | $ | 235,402 | $ | 192,187 | $ | 9,986 | $ | (38,758) | $ | 398,817 | Total assets at fair value | $ | 254,956 | $ | 195,168 | $ | 9,957 | $ | (42,600) | $ | 417,481 |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||||||||
$ 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 | $ | — | $ | 5,013 | $ | 29 | $ | — | $ | 5,042 | Deposits | $ | — | $ | 6,302 | $ | 16 | $ | — | $ | 6,318 | ||||||||||||
Trading liabilities: | Trading liabilities: | Trading liabilities: | ||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | U.S. Treasury and agency securities | 23,790 | 32 | — | — | 23,822 | U.S. Treasury and agency securities | 22,819 | 106 | — | — | 22,925 | ||||||||||||||||||||||
Other sovereign government obligations | Other sovereign government obligations | 35,965 | 2,531 | 73 | — | 38,569 | Other sovereign government obligations | 30,965 | 2,435 | 3 | — | 33,403 | ||||||||||||||||||||||
Corporate and other debt | Corporate and other debt | — | 11,007 | 46 | — | 11,053 | Corporate and other debt | — | 9,979 | 50 | — | 10,029 | ||||||||||||||||||||||
Corporate equities3 | Corporate equities3 | 67,878 | 371 | 41 | — | 68,290 | Corporate equities3 | 51,164 | 125 | 41 | — | 51,330 | ||||||||||||||||||||||
Derivative and other contracts: | Derivative and other contracts: | Derivative and other contracts: | ||||||||||||||||||||||||||||||||
Interest rate | Interest rate | 5,094 | 145,101 | 864 | — | 151,059 | Interest rate | 6,183 | 192,109 | 773 | — | 199,065 | ||||||||||||||||||||||
Credit | Credit | — | 9,703 | 308 | — | 10,011 | Credit | — | 9,735 | 358 | — | 10,093 | ||||||||||||||||||||||
Foreign exchange | Foreign exchange | 55 | 81,981 | 114 | — | 82,150 | Foreign exchange | 208 | 86,626 | 212 | — | 87,046 | ||||||||||||||||||||||
Equity | Equity | 2,194 | 52,453 | 1,084 | — | 55,731 | Equity | 1,667 | 55,795 | 1,389 | — | 58,851 | ||||||||||||||||||||||
Commodity and other | Commodity and other | 4,616 | 12,695 | 1,947 | — | 19,258 | Commodity and other | 2,561 | 11,626 | 1,629 | — | 15,816 | ||||||||||||||||||||||
Netting1 | Netting1 | (10,169) | (233,264) | (1,103) | (44,644) | (289,180) | Netting1 | (7,953) | (280,170) | (1,023) | (49,114) | (338,260) | ||||||||||||||||||||||
Total derivative and other contracts | Total derivative and other contracts | 1,790 | 68,669 | 3,214 | (44,644) | 29,029 | Total derivative and other contracts | 2,666 | 75,721 | 3,338 | (49,114) | 32,611 | ||||||||||||||||||||||
Total trading liabilities | Total trading liabilities | 129,423 | 82,610 | 3,374 | (44,644) | 170,763 | Total trading liabilities | 107,614 | 88,366 | 3,432 | (49,114) | 150,298 | ||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | — | 358 | 514 | — | 872 | Securities sold under agreements to repurchase | — | 544 | 458 | — | 1,002 | ||||||||||||||||||||||
Other secured financings | Other secured financings | — | 4,890 | 115 | — | 5,005 | Other secured financings | — | 6,914 | 98 | — | 7,012 | ||||||||||||||||||||||
Borrowings | Borrowings | — | 84,773 | 1,649 | — | 86,422 | Borrowings | — | 85,028 | 1,528 | — | 86,556 | ||||||||||||||||||||||
Total liabilities at fair value | Total liabilities at fair value | $ | 129,423 | $ | 177,644 | $ | 5,681 | $ | (44,644) | $ | 268,104 | Total liabilities at fair value | $ | 107,614 | $ | 187,154 | $ | 5,532 | $ | (49,114) | $ | 251,186 |
45 |
Notes to Consolidated Financial Statements (Unaudited) |
At December 31, 2022 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Assets at fair value | |||||||||||||||||
Trading assets: | |||||||||||||||||
U.S. Treasury and agency securities | $ | 38,462 | $ | 42,263 | $ | 17 | $ | — | $ | 80,742 | |||||||
Other sovereign government obligations | 24,644 | 4,769 | 169 | — | 29,582 | ||||||||||||
State and municipal securities | — | 1,503 | 145 | — | 1,648 | ||||||||||||
MABS | — | 1,774 | 416 | — | 2,190 | ||||||||||||
Loans and lending commitments2 | — | 6,380 | 2,017 | — | 8,397 | ||||||||||||
Corporate and other debt | — | 23,351 | 2,096 | — | 25,447 | ||||||||||||
Corporate equities3 | 97,869 | 1,019 | 116 | — | 99,004 | ||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate | 4,481 | 166,392 | 517 | — | 171,390 | ||||||||||||
Credit | — | 7,876 | 425 | — | 8,301 | ||||||||||||
Foreign exchange | 49 | 115,766 | 183 | — | 115,998 | ||||||||||||
Equity | 2,778 | 40,171 | 406 | — | 43,355 | ||||||||||||
Commodity and other | 5,609 | 21,152 | 3,701 | — | 30,462 | ||||||||||||
Netting1 | (9,618) | (258,821) | (1,078) | (55,777) | (325,294) | ||||||||||||
Total derivative and other contracts | 3,299 | 92,536 | 4,154 | (55,777) | 44,212 | ||||||||||||
Investments4 | 652 | 685 | 923 | — | 2,260 | ||||||||||||
Physical commodities | — | 2,379 | — | — | 2,379 | ||||||||||||
Total trading assets4 | 164,926 | 176,659 | 10,053 | (55,777) | 295,861 | ||||||||||||
Investment securities—AFS | 53,866 | 30,396 | 35 | — | 84,297 | ||||||||||||
Securities purchased under agreements to resell | — | 8 | — | — | 8 | ||||||||||||
Total assets at fair value | $ | 218,792 | $ | 207,063 | $ | 10,088 | $ | (55,777) | $ | 380,166 |
At December 31, 2022 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Liabilities at fair value | |||||||||||||||||
Deposits | $ | — | $ | 4,776 | $ | 20 | $ | — | $ | 4,796 | |||||||
Trading liabilities: | |||||||||||||||||
U.S. Treasury and agency securities | 20,776 | 228 | — | — | 21,004 | ||||||||||||
Other sovereign government obligations | 23,235 | 2,688 | 3 | — | 25,926 | ||||||||||||
Corporate and other debt | — | 8,786 | 29 | — | 8,815 | ||||||||||||
Corporate equities3 | 59,998 | 518 | 42 | — | 60,558 | ||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate | 3,446 | 161,044 | 668 | — | 165,158 | ||||||||||||
Credit | — | 7,987 | 315 | — | 8,302 | ||||||||||||
Foreign exchange | 89 | 113,383 | 117 | — | 113,589 | ||||||||||||
Equity | 3,266 | 46,923 | 1,142 | — | 51,331 | ||||||||||||
Commodity and other | 6,187 | 17,574 | 2,618 | — | 26,379 | ||||||||||||
Netting1 | (9,618) | (258,821) | (1,078) | (57,107) | (326,624) | ||||||||||||
Total derivative and other contracts | 3,370 | 88,090 | 3,782 | (57,107) | 38,135 | ||||||||||||
Total trading liabilities | 107,379 | 100,310 | 3,856 | (57,107) | 154,438 | ||||||||||||
Securities sold under agreements to repurchase | — | 352 | 512 | — | 864 | ||||||||||||
Other secured financings | — | 4,459 | 91 | — | 4,550 | ||||||||||||
Borrowings | — | 77,133 | 1,587 | — | 78,720 | ||||||||||||
Total liabilities at fair value | $ | 107,379 | $ | 187,030 | $ | 6,066 | $ | (57,107) | $ | 243,368 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Secured lending facilities | Secured lending facilities | $ | 6 | $ | 6 | Secured lending facilities | $ | — | $ | 6 | ||||||
Commercial Real Estate | Commercial Real Estate | 581 | 528 | Commercial Real Estate | 584 | 528 | ||||||||||
Residential Real Estate | Residential Real Estate | 1,954 | 2,020 | Residential Real Estate | 2,555 | 2,020 | ||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | 5,490 | 5,843 | Securities-based lending and Other loans | 4,846 | 5,843 | ||||||||||
Total | Total | $ | 8,031 | $ | 8,397 | Total | $ | 7,985 | $ | 8,397 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Customer and other receivables (payables), net | Customer and other receivables (payables), net | $ | 788 | $ | 1,219 | Customer and other receivables (payables), net | $ | 1,062 | $ | 1,219 |
September 2023 Form 10-Q | 46 |
Notes to Consolidated Financial Statements (Unaudited) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||
U.S. Treasury and agency securities | ||||||||||||||
Beginning balance | $ | — | $ | 9 | $ | 17 | $ | 2 | ||||||
Realized and unrealized gains (losses) | — | — | — | (1) | ||||||||||
Purchases | — | 1 | — | 2 | ||||||||||
Sales | — | (4) | (10) | (7) | ||||||||||
Net transfers | — | (5) | (7) | 5 | ||||||||||
Ending balance | $ | — | $ | 1 | $ | — | $ | 1 | ||||||
Unrealized gains (losses) | $ | — | $ | — | $ | — | $ | (1) | ||||||
Other sovereign government obligations | ||||||||||||||
Beginning balance | $ | 128 | $ | 161 | $ | 169 | $ | 211 | ||||||
Realized and unrealized gains (losses) | — | 23 | 6 | (24) | ||||||||||
Purchases | 17 | 43 | 18 | 69 | ||||||||||
Sales | (30) | (57) | (112) | (60) | ||||||||||
Net transfers | (21) | (33) | 13 | (59) | ||||||||||
Ending balance | $ | 94 | $ | 137 | $ | 94 | $ | 137 | ||||||
Unrealized gains (losses) | $ | 1 | $ | 23 | $ | 1 | $ | (22) | ||||||
State and municipal securities | ||||||||||||||
Beginning balance | $ | 40 | $ | 29 | $ | 145 | $ | 13 | ||||||
Realized and unrealized gains (losses) | (3) | (1) | (2) | (2) | ||||||||||
Purchases | 147 | 4 | 255 | 54 | ||||||||||
Sales | (20) | — | (218) | — | ||||||||||
Net transfers | (52) | 20 | (68) | (13) | ||||||||||
Ending balance | $ | 112 | $ | 52 | $ | 112 | $ | 52 | ||||||
Unrealized gains (losses) | $ | (3) | $ | (3) | $ | (3) | $ | (2) | ||||||
MABS | ||||||||||||||
Beginning balance | $ | 486 | $ | 339 | $ | 416 | $ | 344 | ||||||
Realized and unrealized gains (losses) | (1) | 8 | 13 | (366) | ||||||||||
Purchases | 88 | 3 | 149 | 448 | ||||||||||
Sales | (33) | (33) | (79) | (116) | ||||||||||
Settlements | — | — | 50 | — | ||||||||||
Net transfers | (4) | 27 | (13) | 34 | ||||||||||
Ending balance | $ | 536 | $ | 344 | $ | 536 | $ | 344 | ||||||
Unrealized gains (losses) | $ | 4 | $ | 9 | $ | 5 | $ | (12) | ||||||
Loans and lending commitments | ||||||||||||||
Beginning balance | $ | 2,400 | $ | 2,507 | $ | 2,017 | $ | 3,806 | ||||||
Realized and unrealized gains (losses) | (6) | (26) | (91) | 8 | ||||||||||
Purchases and originations | 997 | 541 | 1,569 | 800 | ||||||||||
Sales | (539) | (353) | (686) | (801) | ||||||||||
Settlements | (666) | (144) | (717) | (618) | ||||||||||
Net transfers | (147) | 58 | (53) | (612) | ||||||||||
Ending balance | $ | 2,039 | $ | 2,583 | $ | 2,039 | $ | 2,583 | ||||||
Unrealized gains (losses) | $ | (6) | $ | (27) | $ | (91) | $ | — |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||
Corporate and other debt | ||||||||||||||
Beginning balance | $ | 2,223 | $ | 2,113 | $ | 2,096 | $ | 1,973 | ||||||
Realized and unrealized gains (losses) | 108 | (43) | 231 | 446 | ||||||||||
Purchases and originations | 346 | 132 | 561 | 752 | ||||||||||
Sales | (465) | (528) | (618) | (1,400) | ||||||||||
Settlements | (6) | (30) | (6) | (26) | ||||||||||
Net transfers | 257 | 254 | 199 | 153 | ||||||||||
Ending balance | $ | 2,463 | $ | 1,898 | $ | 2,463 | $ | 1,898 | ||||||
Unrealized gains (losses) | $ | 113 | $ | (42) | $ | 239 | $ | 454 | ||||||
Corporate equities | ||||||||||||||
Beginning balance | $ | 166 | $ | 246 | $ | 116 | $ | 115 | ||||||
Realized and unrealized gains (losses) | (29) | (60) | (64) | (71) | ||||||||||
Purchases | 32 | 15 | 101 | 79 | ||||||||||
Sales | (34) | (37) | (38) | (67) | ||||||||||
Net transfers | 60 | (19) | 80 | 89 | ||||||||||
Ending balance | $ | 195 | $ | 145 | $ | 195 | $ | 145 | ||||||
Unrealized gains (losses) | $ | (25) | $ | (60) | $ | (36) | $ | (65) | ||||||
Investments | ||||||||||||||
Beginning balance | $ | 968 | $ | 1,027 | $ | 923 | $ | 1,125 | ||||||
Realized and unrealized gains (losses) | 17 | (140) | 24 | (275) | ||||||||||
Purchases | 6 | 6 | 153 | 52 | ||||||||||
Sales | (76) | (18) | (183) | (33) | ||||||||||
Net transfers | 19 | (2) | 17 | 4 | ||||||||||
Ending balance | $ | 934 | $ | 873 | $ | 934 | $ | 873 | ||||||
Unrealized gains (losses) | $ | 19 | $ | (136) | $ | 17 | $ | (267) | ||||||
Investment securities—AFS | ||||||||||||||
Beginning balance | $ | — | $ | 38 | $ | 35 | $ | — | ||||||
Realized and unrealized gains (losses) | (5) | (2) | (4) | (2) | ||||||||||
Net transfers | 40 | — | 4 | 38 | ||||||||||
Ending balance | $ | 35 | $ | 36 | $ | 35 | $ | 36 | ||||||
Unrealized gains (losses) | $ | (5) | $ | (2) | $ | (4) | $ | (2) | ||||||
Net derivatives: Interest rate | ||||||||||||||
Beginning balance | $ | 49 | $ | (102) | $ | (151) | $ | 708 | ||||||
Realized and unrealized gains (losses) | 49 | (200) | (318) | (482) | ||||||||||
Purchases | 26 | — | 57 | — | ||||||||||
Issuances | (7) | — | (63) | — | ||||||||||
Settlements | (110) | 122 | 329 | (38) | ||||||||||
Net transfers | (256) | 3 | (103) | (365) | ||||||||||
Ending balance | $ | (249) | $ | (177) | $ | (249) | $ | (177) | ||||||
Unrealized gains (losses) | $ | 7 | $ | (120) | $ | (94) | $ | (201) |
Notes to Consolidated Financial Statements (Unaudited) |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
U.S. Treasury and agency securities | ||||||||||||||||||||||||||||
Net derivatives: Credit | Net derivatives: Credit | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 17 | $ | 2 | Beginning balance | $ | 96 | $ | 190 | $ | 110 | $ | 98 | ||||||||||||||
Realized and unrealized gains (losses) | Realized and unrealized gains (losses) | 9 | 3 | (12) | 91 | |||||||||||||||||||||||
Purchases | Purchases | — | — | — | 3 | |||||||||||||||||||||||
Issuances | Issuances | — | — | — | (1) | |||||||||||||||||||||||
Settlements | Settlements | (7) | (78) | (7) | (59) | |||||||||||||||||||||||
Net transfers | Net transfers | (8) | 7 | (1) | (10) | |||||||||||||||||||||||
Ending balance | Ending balance | $ | 90 | $ | 122 | $ | 90 | $ | 122 | |||||||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | 8 | $ | 7 | $ | 4 | $ | 83 | |||||||||||||||||||
Net derivatives: Foreign exchange | Net derivatives: Foreign exchange | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 28 | $ | (331) | $ | 66 | $ | 52 | |||||||||||||||||||
Realized and unrealized gains (losses) | Realized and unrealized gains (losses) | (13) | 38 | (53) | (18) | |||||||||||||||||||||||
Settlements | Settlements | 16 | 73 | (68) | 47 | |||||||||||||||||||||||
Net transfers | Net transfers | (160) | 395 | (74) | 94 | |||||||||||||||||||||||
Ending balance | Ending balance | $ | (129) | $ | 175 | $ | (129) | $ | 175 | |||||||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | (16) | $ | 44 | $ | (51) | $ | 18 | |||||||||||||||||||
Net derivatives: Equity | Net derivatives: Equity | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | (775) | $ | (530) | $ | (736) | $ | (945) | |||||||||||||||||||
Realized and unrealized gains (losses) | Realized and unrealized gains (losses) | 195 | 1 | 192 | 275 | |||||||||||||||||||||||
Purchases | Purchases | 38 | 48 | 157 | 167 | |||||||||||||||||||||||
Issuances | Issuances | (166) | (92) | (492) | (253) | |||||||||||||||||||||||
Settlements | Settlements | 252 | 68 | 229 | 379 | |||||||||||||||||||||||
Net transfers | Net transfers | (326) | 49 | (132) | (79) | |||||||||||||||||||||||
Ending balance | Ending balance | $ | (782) | $ | (456) | $ | (782) | $ | (456) | |||||||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | 160 | $ | (3) | $ | 93 | $ | 399 | |||||||||||||||||||
Net derivatives: Commodity and other | Net derivatives: Commodity and other | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 1,416 | $ | 1,344 | $ | 1,083 | $ | 1,529 | |||||||||||||||||||
Realized and unrealized gains (losses) | Realized and unrealized gains (losses) | (7) | 238 | 549 | 546 | |||||||||||||||||||||||
Purchases | Purchases | 7 | 2 | 70 | 107 | |||||||||||||||||||||||
Issuances | Issuances | (9) | (7) | (80) | (97) | |||||||||||||||||||||||
Settlements | Settlements | (92) | 69 | (313) | (247) | |||||||||||||||||||||||
Net transfers | Net transfers | (34) | 155 | (28) | (37) | |||||||||||||||||||||||
Ending balance | Ending balance | $ | 1,281 | $ | 1,801 | $ | 1,281 | $ | 1,801 | |||||||||||||||||||
Unrealized gains (losses) | Unrealized gains (losses) | $ | (142) | $ | 72 | $ | 216 | $ | 25 | |||||||||||||||||||
Deposits | Deposits | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 36 | $ | 19 | $ | 20 | $ | 67 | |||||||||||||||||||
Realized and unrealized losses (gains) | Realized and unrealized losses (gains) | (1) | — | (1) | — | |||||||||||||||||||||||
Issuances | Issuances | 6 | 2 | 26 | 2 | |||||||||||||||||||||||
Settlements | Settlements | — | (1) | — | (3) | |||||||||||||||||||||||
Net transfers | Net transfers | (25) | (13) | (29) | (59) | |||||||||||||||||||||||
Ending balance | Ending balance | $ | 16 | $ | 7 | $ | 16 | $ | 7 | |||||||||||||||||||
Unrealized losses (gains) | Unrealized losses (gains) | $ | (1) | $ | — | $ | (1) | $ | — | |||||||||||||||||||
Nonderivative trading liabilities | Nonderivative trading liabilities | |||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 89 | $ | 104 | $ | 74 | $ | 61 | |||||||||||||||||||
Realized and unrealized losses (gains) | Realized and unrealized losses (gains) | (4) | (8) | (12) | (41) | |||||||||||||||||||||||
Purchases | Purchases | — | 1 | Purchases | (29) | (20) | (49) | (39) | ||||||||||||||||||||
Sales | Sales | (9) | — | Sales | 23 | 16 | 77 | 88 | ||||||||||||||||||||
Net transfers | Net transfers | (7) | 5 | Net transfers | 15 | (2) | 4 | 21 | ||||||||||||||||||||
Ending balance | Ending balance | $ | 1 | $ | 8 | Ending balance | $ | 94 | $ | 90 | $ | 94 | $ | 90 | ||||||||||||||
Unrealized gains (losses) | $ | — | $ | — | ||||||||||||||||||||||||
Other sovereign government obligations | ||||||||||||||||||||||||||||
Beginning balance | $ | 169 | $ | 211 | ||||||||||||||||||||||||
Realized and unrealized gains (losses) | 4 | — | ||||||||||||||||||||||||||
Purchases | 78 | 6 | ||||||||||||||||||||||||||
Sales | (54) | (40) | ||||||||||||||||||||||||||
Net transfers | (1) | 11 | ||||||||||||||||||||||||||
Ending balance | $ | 196 | $ | 188 | ||||||||||||||||||||||||
Unrealized gains (losses) | $ | 4 | $ | — | ||||||||||||||||||||||||
State and municipal securities | ||||||||||||||||||||||||||||
Beginning balance | $ | 145 | $ | 13 | ||||||||||||||||||||||||
Sales | (40) | — | ||||||||||||||||||||||||||
Net transfers | (102) | (13) | ||||||||||||||||||||||||||
Ending balance | $ | 3 | $ | — | ||||||||||||||||||||||||
Unrealized gains (losses) | $ | — | $ | — | ||||||||||||||||||||||||
MABS | ||||||||||||||||||||||||||||
Beginning balance | $ | 416 | $ | 344 | ||||||||||||||||||||||||
Realized and unrealized gains (losses) | 2 | (1) | ||||||||||||||||||||||||||
Purchases | 57 | 56 | ||||||||||||||||||||||||||
Sales | (45) | (96) | ||||||||||||||||||||||||||
Net transfers | 24 | 48 | ||||||||||||||||||||||||||
Ending balance | $ | 454 | $ | 351 | ||||||||||||||||||||||||
Unrealized gains (losses) | $ | 1 | $ | (3) | ||||||||||||||||||||||||
Loans and lending commitments | ||||||||||||||||||||||||||||
Beginning balance | $ | 2,017 | $ | 3,806 | ||||||||||||||||||||||||
Realized and unrealized gains (losses) | (26) | 26 | ||||||||||||||||||||||||||
Purchases and originations | 535 | 369 | ||||||||||||||||||||||||||
Sales | (193) | (210) | ||||||||||||||||||||||||||
Settlements | (235) | (409) | ||||||||||||||||||||||||||
Net transfers | (41) | (441) | ||||||||||||||||||||||||||
Ending balance | $ | 2,057 | $ | 3,141 | ||||||||||||||||||||||||
Unrealized gains (losses) | $ | (25) | $ | 22 | ||||||||||||||||||||||||
Corporate and other debt | ||||||||||||||||||||||||||||
Beginning balance | $ | 2,096 | $ | 1,973 | ||||||||||||||||||||||||
Realized and unrealized gains (losses) | 34 | 12 | ||||||||||||||||||||||||||
Purchases and originations | 508 | 71 | ||||||||||||||||||||||||||
Sales | (446) | (160) | ||||||||||||||||||||||||||
Net transfers | 51 | (143) | ||||||||||||||||||||||||||
Ending balance | $ | 2,243 | $ | 1,753 | ||||||||||||||||||||||||
Unrealized gains (losses) | $ | 64 | $ | 7 | ||||||||||||||||||||||||
Corporate equities | ||||||||||||||||||||||||||||
Beginning balance | $ | 116 | $ | 115 | ||||||||||||||||||||||||
Realized and unrealized gains (losses) | (8) | — | ||||||||||||||||||||||||||
Purchases | 19 | 24 | ||||||||||||||||||||||||||
Sales | (25) | (82) | ||||||||||||||||||||||||||
Net transfers | 42 | 182 | ||||||||||||||||||||||||||
Ending balance | $ | 144 | $ | 239 | ||||||||||||||||||||||||
Unrealized gains (losses) | $ | (2) | $ | — | ||||||||||||||||||||||||
Unrealized losses (gains) | Unrealized losses (gains) | $ | (2) | $ | (8) | $ | (11) | $ | (41) |
Three Months Ended March 31, | ||||||||||||||
$ in millions | 2023 | 2022 | ||||||||||||
Investments | ||||||||||||||
Beginning balance | $ | 923 | $ | 1,125 | ||||||||||
Realized and unrealized gains (losses) | 14 | (24) | ||||||||||||
Purchases | 47 | 20 | ||||||||||||
Sales | (24) | (4) | ||||||||||||
Net transfers | (5) | 3 | ||||||||||||
Ending balance | $ | 955 | $ | 1,120 | ||||||||||
Unrealized gains (losses) | $ | 10 | $ | (26) | ||||||||||
Investment securities—AFS | ||||||||||||||
Beginning balance | $ | 35 | $ | — | ||||||||||
Realized and unrealized gains (losses) | 1 | — | ||||||||||||
Net transfers | (36) | — | ||||||||||||
Ending balance | $ | — | $ | — | ||||||||||
Unrealized gains (losses) | $ | 1 | $ | — | ||||||||||
Net derivatives: Interest rate | ||||||||||||||
Beginning balance | $ | (151) | $ | 708 | ||||||||||
Realized and unrealized gains (losses) | (149) | 39 | ||||||||||||
Purchases | 10 | 3 | ||||||||||||
Issuances | (8) | (2) | ||||||||||||
Settlements | 189 | (21) | ||||||||||||
Net transfers | (108) | (93) | ||||||||||||
Ending balance | $ | (217) | $ | 634 | ||||||||||
Unrealized gains (losses) | $ | 29 | $ | 147 | ||||||||||
Net derivatives: Credit | ||||||||||||||
Beginning balance | $ | 110 | $ | 98 | ||||||||||
Realized and unrealized gains (losses) | (27) | 43 | ||||||||||||
Purchases | — | 8 | ||||||||||||
Issuances | — | (8) | ||||||||||||
Settlements | (31) | (68) | ||||||||||||
Net transfers | (4) | 20 | ||||||||||||
Ending balance | $ | 48 | $ | 93 | ||||||||||
Unrealized gains (losses) | $ | (28) | $ | 28 | ||||||||||
Net derivatives: Foreign exchange | ||||||||||||||
Beginning balance | $ | 66 | $ | 52 | ||||||||||
Realized and unrealized gains (losses) | (11) | (145) | ||||||||||||
Purchases | — | 5 | ||||||||||||
Issuances | (3) | — | ||||||||||||
Settlements | 40 | 81 | ||||||||||||
Net transfers | (26) | (26) | ||||||||||||
Ending balance | $ | 66 | $ | (33) | ||||||||||
Unrealized gains (losses) | $ | (10) | $ | (138) | ||||||||||
Net derivatives: Equity | ||||||||||||||
Beginning balance | $ | (736) | $ | (945) | ||||||||||
Realized and unrealized gains (losses) | 16 | 98 | ||||||||||||
Purchases | 39 | 28 | ||||||||||||
Issuances | (161) | (68) | ||||||||||||
Settlements | (30) | 117 | ||||||||||||
Net transfers | 95 | 116 | ||||||||||||
Ending balance | $ | (777) | $ | (654) | ||||||||||
Unrealized gains (losses) | $ | (30) | $ | 88 |
(Unaudited) |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net derivatives: Commodity and other | ||||||||||||||||||||||||||||
Beginning balance | $ | 1,083 | $ | 1,529 | ||||||||||||||||||||||||
Realized and unrealized gains (losses) | 446 | 4 | ||||||||||||||||||||||||||
Purchases | 16 | 9 | ||||||||||||||||||||||||||
Issuances | (3) | (11) | ||||||||||||||||||||||||||
Settlements | (103) | (47) | ||||||||||||||||||||||||||
Net transfers | 160 | (50) | ||||||||||||||||||||||||||
Ending balance | $ | 1,599 | $ | 1,434 | ||||||||||||||||||||||||
Unrealized gains (losses) | $ | 211 | $ | (216) | ||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||
Beginning balance | $ | 20 | $ | 67 | ||||||||||||||||||||||||
Issuances | 6 | — | ||||||||||||||||||||||||||
Settlements | — | (5) | ||||||||||||||||||||||||||
Net transfers | 3 | (36) | ||||||||||||||||||||||||||
Ending balance | $ | 29 | $ | 26 | ||||||||||||||||||||||||
Unrealized losses (gains) | $ | — | $ | — | ||||||||||||||||||||||||
Nonderivative trading liabilities | ||||||||||||||||||||||||||||
Beginning balance | $ | 74 | $ | 61 | ||||||||||||||||||||||||
Realized and unrealized losses (gains) | (7) | (3) | ||||||||||||||||||||||||||
Purchases | (44) | (33) | ||||||||||||||||||||||||||
Sales | 113 | 11 | ||||||||||||||||||||||||||
Net transfers | 24 | 12 | ||||||||||||||||||||||||||
Ending balance | $ | 160 | $ | 48 | ||||||||||||||||||||||||
Unrealized losses (gains) | $ | (5) | $ | (3) | ||||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 512 | $ | 651 | Beginning balance | $ | 454 | $ | 514 | $ | 512 | $ | 651 | ||||||||||||||
Realized and unrealized losses (gains) | Realized and unrealized losses (gains) | 11 | 2 | Realized and unrealized losses (gains) | 4 | 5 | 11 | (3) | ||||||||||||||||||||
Issuances | Issuances | — | — | 1 | 9 | |||||||||||||||||||||||
Settlements | Settlements | (9) | (10) | Settlements | — | (11) | (9) | (22) | ||||||||||||||||||||
Net transfers | Net transfers | — | (127) | Net transfers | — | — | (57) | (127) | ||||||||||||||||||||
Ending balance | Ending balance | $ | 514 | $ | 516 | Ending balance | $ | 458 | $ | 508 | $ | 458 | $ | 508 | ||||||||||||||
Unrealized losses (gains) | Unrealized losses (gains) | $ | 11 | $ | 2 | Unrealized losses (gains) | $ | 4 | $ | 5 | $ | 11 | $ | — | ||||||||||||||
Other secured financings | Other secured financings | Other secured financings | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 91 | $ | 403 | Beginning balance | $ | 90 | $ | 112 | $ | 91 | $ | 403 | ||||||||||||||
Realized and unrealized losses (gains) | Realized and unrealized losses (gains) | 2 | (3) | Realized and unrealized losses (gains) | (1) | (5) | 2 | (11) | ||||||||||||||||||||
Issuances | Issuances | 41 | 28 | Issuances | 15 | 13 | 59 | 44 | ||||||||||||||||||||
Settlements | Settlements | (19) | (305) | Settlements | (6) | (7) | (54) | (320) | ||||||||||||||||||||
Net transfers | Net transfers | — | (3) | Net transfers | — | — | — | (3) | ||||||||||||||||||||
Ending balance | Ending balance | $ | 115 | $ | 120 | Ending balance | $ | 98 | $ | 113 | $ | 98 | $ | 113 | ||||||||||||||
Unrealized losses (gains) | Unrealized losses (gains) | $ | 2 | $ | (3) | Unrealized losses (gains) | $ | (1) | $ | (5) | $ | 2 | $ | (11) | ||||||||||||||
Borrowings | Borrowings | Borrowings | ||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 1,587 | $ | 2,157 | Beginning balance | $ | 1,787 | $ | 2,325 | $ | 1,587 | $ | 2,157 | ||||||||||||||
Realized and unrealized losses (gains) | Realized and unrealized losses (gains) | 48 | (143) | Realized and unrealized losses (gains) | 18 | (185) | 83 | (625) | ||||||||||||||||||||
Issuances | Issuances | 239 | 161 | Issuances | 342 | 65 | 626 | 230 | ||||||||||||||||||||
Settlements | Settlements | (82) | (42) | Settlements | (182) | (65) | (355) | (263) | ||||||||||||||||||||
Net transfers | Net transfers | (143) | 266 | Net transfers | (437) | (203) | (413) | 438 | ||||||||||||||||||||
Ending balance | Ending balance | $ | 1,649 | $ | 2,399 | Ending balance | $ | 1,528 | $ | 1,937 | $ | 1,528 | $ | 1,937 | ||||||||||||||
Unrealized losses (gains) | Unrealized losses (gains) | $ | 45 | $ | (143) | Unrealized losses (gains) | $ | 18 | $ | (185) | $ | 48 | $ | (629) | ||||||||||||||
Portion of Unrealized losses (gains) recorded in OCI—Change in net DVA | Portion of Unrealized losses (gains) recorded in OCI—Change in net DVA | 9 | (29) | Portion of Unrealized losses (gains) recorded in OCI—Change in net DVA | (4) | (36) | 10 | (126) |
September 2023 Form 10-Q | 48 |
Notes to Consolidated Financial Statements (Unaudited) |
Balance / Range (Average1) | ||||||||
$ in millions, except inputs | At March 31, 2023 | At December 31, 2022 | ||||||
Assets at Fair Value on a Recurring Basis | ||||||||
Other sovereign government obligations | $ | 196 | $ | 169 | ||||
Comparable pricing: | ||||||||
Bond price | 61 to 119 points (92 points) | 57 to 124 points (89 points) | ||||||
State and municipal securities | $ | 3 | $ | 145 | ||||
Comparable pricing: | ||||||||
Bond price | N/M | 86 to 100 points (97 points) | ||||||
MABS | $ | 454 | $ | 416 | ||||
Comparable pricing: | ||||||||
Bond price | 0 to 95 points (60 points) | 0 to 95 points (68 points) | ||||||
Loans and lending commitments | $ | 2,057 | $ | 2,017 | ||||
Margin loan model: | ||||||||
Margin loan rate | 2% to 4% (3%) | 2% to 4% (3%) | ||||||
Comparable pricing: | ||||||||
Loan price | 88 to 104 points (99 points) | 87 to 105 points (99 points) | ||||||
Corporate and other debt | $ | 2,243 | $ | 2,096 | ||||
Comparable pricing: | ||||||||
Bond price | 51 to 129 points (88 points) | 51 to 132 points (90 points) | ||||||
Discounted cash flow: | ||||||||
Loss given default | 54% to 84% (62% / 54%) | 54% to 84% (62% / 54%) | ||||||
Corporate equities | $ | 144 | $ | 116 | ||||
Comparable pricing: | ||||||||
Equity price | 100% | 100% | ||||||
Investments | $ | 955 | $ | 923 | ||||
Discounted cash flow: | ||||||||
WACC | 15% to 17% (16%) | 15% to 17% (16%) | ||||||
Exit multiple | 7 to 17 times (14 times) | 7 to 17 times (14 times) | ||||||
Market approach: | ||||||||
EBITDA multiple | 6 to 21 times (11 times) | 7 to 21 times (11 times) | ||||||
Comparable pricing: | ||||||||
Equity price | 24% to 100% (89%) | 24% to 100% (89%) | ||||||
(Unaudited) |
Balance / Range (Average1) | Balance / Range (Average1) | |||||||||||||||
$ in millions, except inputs | $ in millions, except inputs | At March 31, 2023 | At December 31, 2022 | $ in millions, except inputs | At September 30, 2023 | At December 31, 2022 | ||||||||||
Assets at Fair Value on a Recurring Basis | Assets at Fair Value on a Recurring Basis | |||||||||||||||
Other sovereign government obligations | Other sovereign government obligations | $ | 94 | $ | 169 | |||||||||||
Comparable pricing: | Comparable pricing: | |||||||||||||||
Bond price | Bond price | 61 to 111 points (86 points) | 57 to 124 points (89 points) | |||||||||||||
State and municipal securities | State and municipal securities | $ | 112 | $ | 145 | |||||||||||
Comparable pricing: | Comparable pricing: | |||||||||||||||
Bond price | Bond price | 90 to 104 points (100 points) | 86 to 100 points (97 points) | |||||||||||||
MABS | MABS | $ | 536 | $ | 416 | |||||||||||
Comparable pricing: | Comparable pricing: | |||||||||||||||
Bond price | Bond price | 0 to 90 points (65 points) | 0 to 95 points (68 points) | |||||||||||||
Loans and lending commitments | Loans and lending commitments | $ | 2,039 | $ | 2,017 | |||||||||||
Margin loan model: | Margin loan model: | |||||||||||||||
Margin loan rate | Margin loan rate | 2% to 4% (3%) | 2% to 4% (3%) | |||||||||||||
Comparable pricing: | Comparable pricing: | |||||||||||||||
Loan price | Loan price | 91 to 102 points (99 points) | 87 to 105 points (99 points) | |||||||||||||
Corporate and other debt | Corporate and other debt | $ | 2,463 | $ | 2,096 | |||||||||||
Comparable pricing: | Comparable pricing: | |||||||||||||||
Bond price | Bond price | 30 to 136 points (82 points) | 51 to 132 points (90 points) | |||||||||||||
Discounted cash flow: | Discounted cash flow: | |||||||||||||||
Loss given default | Loss given default | 54% to 84% (62% / 54%) | 54% to 84% (62% / 54%) | |||||||||||||
Corporate equities | Corporate equities | $ | 195 | $ | 116 | |||||||||||
Comparable pricing: | Comparable pricing: | |||||||||||||||
Equity price | Equity price | 100% | 100% | |||||||||||||
Investments | Investments | $ | 934 | $ | 923 | |||||||||||
Discounted cash flow: | Discounted cash flow: | |||||||||||||||
WACC | WACC | 15% to 18% (16%) | 15% to 17% (16%) | |||||||||||||
Exit multiple | Exit multiple | 9 to 17 times (14 times) | 7 to 17 times (14 times) | |||||||||||||
Market approach: | Market approach: | |||||||||||||||
EBITDA multiple | EBITDA multiple | 21 times | 7 to 21 times (11 times) | |||||||||||||
Comparable pricing: | Comparable pricing: | |||||||||||||||
Equity price | Equity price | 24% to 100% (87%) | 24% to 100% (89%) | |||||||||||||
Net derivative and other contracts: | Net derivative and other contracts: | Net derivative and other contracts: | ||||||||||||||
Interest rate | Interest rate | $ | (217) | $ | (151) | Interest rate | $ | (249) | $ | (151) | ||||||
Option model: | Option model: | Option model: | ||||||||||||||
IR volatility skew | IR volatility skew | 36% to 138% (90% / 84%) | 105% to 130% (113% / 109%) | IR volatility skew | 62% to 118% (75% / 77%) | 105% to 130% (113% / 109%) | ||||||||||
IR curve correlation | IR curve correlation | 53% to 99% (83% / 86%) | 47% to 100% (80% / 84%) | IR curve correlation | 51% to 97% (82% / 86%) | 47% to 100% (80% / 84%) | ||||||||||
Bond volatility | Bond volatility | 1% to 2% (1% / 1%) | N/M | Bond volatility | 1% to 1% (1% / 1%) | N/M | ||||||||||
Inflation volatility | Inflation volatility | 22% to 70% (43% / 39%) | 22% to 65% (43% / 38%) | Inflation volatility | 22% to 70% (44% / 38%) | 22% to 65% (43% / 38%) | ||||||||||
IR curve | IR curve | 4% to 11% (6% / 5%) | 4% to 5% (5% / 5%) | IR curve | N/M | 4% to 5% (5% / 5%) | ||||||||||
Credit | Credit | $ | 48 | $ | 110 | Credit | $ | 90 | $ | 110 | ||||||
Credit default swap model: | Credit default swap model: | Credit default swap model: | ||||||||||||||
Cash-synthetic basis | Cash-synthetic basis | 7 points | 7 points | Cash-synthetic basis | 7 points | 7 points | ||||||||||
Bond price | Bond price | 0 to 92 bps (49 points) | 0 to 83 points (43 points) | Bond price | 0 to 90 bps (48 points) | 0 to 83 points (43 points) | ||||||||||
Credit spread | Credit spread | 10 to 449 bps (111 bps) | 10 to 528 bps (115 bps) | Credit spread | 10 to 464 bps (108 bps) | 10 to 528 bps (115 bps) | ||||||||||
Funding spread | Funding spread | 18 to 590 bps (81 bps) | 18 to 590 bps (93 bps) | Funding spread | 18 to 590 bps (57 bps) | 18 to 590 bps (93 bps) | ||||||||||
Foreign exchange2 | $ | 66 | $ | 66 | ||||||||||||
Option model: | ||||||||||||||||
IR curve | -8% to 18% (5% / 4%) | -2% to 38% (8% / 4%) | ||||||||||||||
Foreign exchange volatility skew | -18% to 30% (2% / 0%) | 10% to 10% (10% / 10%) | ||||||||||||||
Contingency probability | 95% to 95% (95% / 95%) | 95% to 95% (95% / 95%) | ||||||||||||||
Equity2 | $ | (777) | $ | (736) | ||||||||||||
Option model: | ||||||||||||||||
Equity volatility | 6% to 95% (22%) | 5% to 96% (25%) | ||||||||||||||
Equity volatility skew | -5% to 0% (-1%) | -4% to 0% (-1%) | ||||||||||||||
Equity correlation | 17% to 95% (83%) | 10% to 93% (71%) | ||||||||||||||
FX correlation | -79% to 65% (-25%) | -79% to 65% (-26%) | ||||||||||||||
IR correlation | 10% to 30% (13%) | 10% to 30% (-14%) | ||||||||||||||
Commodity and other | $ | 1,599 | $ | 1,083 | ||||||||||||
Option model: | ||||||||||||||||
Forward power price | $0 to $282 ($45) per MWh | $1 to $292 ($43) per MWh | ||||||||||||||
Commodity volatility | 8% to 113% (35%) | 12% to 169% (34%) | ||||||||||||||
Cross-commodity correlation | 54% to 100% (93%) | 70% to 100% (94%) | ||||||||||||||
Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||
Securities sold under agreements to repurchase | $ | 514 | $ | 512 | ||||||||||||
Discounted cash flow: | ||||||||||||||||
Funding spread | 80 to 157 bps (118 bps) | 96 to 165 bps (131 bps) | ||||||||||||||
Other secured financings | $ | 115 | $ | 91 | ||||||||||||
Comparable pricing: | ||||||||||||||||
Loan price | 23 to 101 points (82 points) | 23 to 101 points (75 points) |
Balance / Range (Average1) | Balance / Range (Average1) | |||||||||||||||
$ in millions, except inputs | $ in millions, except inputs | At March 31, 2023 | At December 31, 2022 | $ in millions, except inputs | At September 30, 2023 | At December 31, 2022 | ||||||||||
Foreign exchange2 | Foreign exchange2 | $ | (129) | $ | 66 | |||||||||||
Option model: | Option model: | |||||||||||||||
IR curve | IR curve | -3% to 10% (3% / 1%) | -2% to 38% (8% / 4%) | |||||||||||||
Foreign exchange volatility skew | Foreign exchange volatility skew | -2% to 8% (2% / 0%) | 10% to 10% (10% / 10%) | |||||||||||||
Contingency probability | Contingency probability | 95% to 95% (95% / 95%) | 95% to 95% (95% / 95%) | |||||||||||||
Equity2 | Equity2 | $ | (782) | $ | (736) | |||||||||||
Option model: | Option model: | |||||||||||||||
Equity volatility | Equity volatility | 6% to 97% (21%) | 5% to 96% (25%) | |||||||||||||
Equity volatility skew | Equity volatility skew | -2% to 0% (0%) | -4% to 0% (-1%) | |||||||||||||
Equity correlation | Equity correlation | 9% to 97% (58%) | 10% to 93% (71%) | |||||||||||||
FX correlation | FX correlation | -79% to 40% (-27%) | -79% to 65% (-26%) | |||||||||||||
IR correlation | IR correlation | 13% to 30% (15%) | 10% to 30% (14%) | |||||||||||||
Commodity and other | Commodity and other | $ | 1,281 | $ | 1,083 | |||||||||||
Option model: | Option model: | |||||||||||||||
Forward power price | Forward power price | $0 to $208 ($49) per MwH | $1 to $292 ($43) per MWh | |||||||||||||
Commodity volatility | Commodity volatility | 12% to 145% (33%) | 12% to 169% (34%) | |||||||||||||
Cross-commodity correlation | Cross-commodity correlation | 57% to 100% (94%) | 70% to 100% (94%) | |||||||||||||
Liabilities Measured at Fair Value on a Recurring Basis | Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | $ | 458 | $ | 512 | |||||||||||
Discounted cash flow: | Discounted cash flow: | |||||||||||||||
Funding spread | Funding spread | 22 to 141 bps (77 bps) | 96 to 165 bps (131 bps) | |||||||||||||
Other secured financings | Other secured financings | $ | 98 | $ | 91 | |||||||||||
Comparable pricing: | Comparable pricing: | |||||||||||||||
Loan price | Loan price | 23 to 100 points (81 points) | 23 to 101 points (75 points) | |||||||||||||
Borrowings | Borrowings | $ | 1,649 | $ | 1,587 | Borrowings | $ | 1,528 | $ | 1,587 | ||||||
Option model: | Option model: | Option model: | ||||||||||||||
Equity volatility | Equity volatility | 6% to 66% (22%) | 7% to 86% (23%) | Equity volatility | 6% to 71% (18%) | 7% to 86% (23%) | ||||||||||
Equity volatility skew | Equity volatility skew | -1% to 0% (0%) | -2% to 0% (0%) | Equity volatility skew | -3% to 0% (0%) | -2% to 0% (0%) | ||||||||||
Equity correlation | Equity correlation | 41% to 95% (80%) | 39% to 98% (86%) | Equity correlation | 50% to 95% (77%) | 39% to 98% (86%) | ||||||||||
Equity - FX correlation | Equity - FX correlation | -55% to 6% (-26%) | -50% to 0% (-21%) | Equity - FX correlation | -52% to 35% (-29%) | -50% to 0% (-21%) | ||||||||||
IR curve correlation | IR curve correlation | 49% to 98% (85% / 90%) | N/M | IR curve correlation | 51% to 88% (71% / 71%) | N/M | ||||||||||
IR volatility skew | IR volatility skew | N/M | 47% to 136% (74% / 59%) | IR volatility skew | N/M | 47% to 136% (74% / 59%) | ||||||||||
Discounted cash flow: | Discounted cash flow: | Discounted cash flow: | ||||||||||||||
Loss given default | Loss given default | 54% to 84% (62% / 54%) | 54% to 84% (62% / 54%) | Loss given default | 54% to 84% (62% / 5%) | 54% to 84% (62% / 54%) | ||||||||||
Nonrecurring Fair Value Measurement | Nonrecurring Fair Value Measurement | Nonrecurring Fair Value Measurement | ||||||||||||||
Loans | Loans | $ | 5,812 | $ | 6,610 | Loans | $ | 5,224 | $ | 6,610 | ||||||
Corporate loan model: | Corporate loan model: | Corporate loan model: | ||||||||||||||
Credit spread | Credit spread | 105 to 1286 bps (830 bps) | 91 to 1276 bps (776 bps) | Credit spread | 120 to 1215 bps (794 bps) | 91 to 1276 bps (776 bps) | ||||||||||
Comparable pricing: | Comparable pricing: | Comparable pricing: | ||||||||||||||
Loan price | Loan price | 17 to 97 points (66 points) | 36 to 80 points (65 points) | Loan price | 15 to 98 points (70 points) | 36 to 80 points (65 points) | ||||||||||
Warehouse model: | Warehouse model: | Warehouse model: | ||||||||||||||
Credit spread | Credit spread | 108 to 311 bps (246 bps) | 110 to 319 bps (245 bps) | Credit spread | 120 to 298 bps (237 bps) | 110 to 319 bps (245 bps) |
49 | September 2023 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
(Unaudited) |
At March 31, 2023 | At December 31, 2022 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||
$ in millions | $ in millions | Carrying Value | Commitment | Carrying Value | Commitment | $ in millions | Carrying Value | Commitment | Carrying Value | Commitment | ||||||||||||||||||
Private equity | Private equity | $ | 2,664 | $ | 637 | $ | 2,622 | $ | 638 | Private equity | $ | 2,587 | $ | 747 | $ | 2,622 | $ | 638 | ||||||||||
Real estate | Real estate | 2,566 | 256 | 2,642 | 239 | Real estate | 2,804 | 244 | 2,642 | 239 | ||||||||||||||||||
Hedge1 | Hedge1 | 194 | 3 | 190 | 3 | Hedge1 | 74 | 3 | 190 | 3 | ||||||||||||||||||
Total | Total | $ | 5,424 | $ | 896 | $ | 5,454 | $ | 880 | Total | $ | 5,465 | $ | 994 | $ | 5,454 | $ | 880 |
Carrying Value at March 31, 2023 | Carrying Value at September 30, 2023 | |||||||||||||||
$ in millions | $ in millions | Private Equity | Real Estate | $ in millions | Private Equity | Real Estate | ||||||||||
Less than 5 years | Less than 5 years | $ | 1,085 | $ | 975 | Less than 5 years | $ | 1,338 | $ | 979 | ||||||
5-10 years | 5-10 years | 1,515 | 1,554 | 5-10 years | 1,172 | 1,771 | ||||||||||
Over 10 years | Over 10 years | 64 | 37 | Over 10 years | 77 | 54 | ||||||||||
Total | Total | $ | 2,664 | $ | 2,566 | Total | $ | 2,587 | $ | 2,804 |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||
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 | $ | 5,083 | $ | 5,812 | $ | 10,895 | Loans | $ | 3,711 | $ | 5,224 | $ | 8,935 | ||||||||
Other assets—Other investments | — | — | — | |||||||||||||||||||
Other assets—ROU assets | — | — | — | |||||||||||||||||||
Total | Total | $ | 5,083 | $ | 5,812 | $ | 10,895 | Total | $ | 3,711 | $ | 5,224 | $ | 8,935 | ||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||
Other liabilities and accrued expenses—Lending commitments | Other liabilities and accrued expenses—Lending commitments | $ | 195 | $ | 97 | $ | 292 | Other liabilities and accrued expenses—Lending commitments | $ | 156 | $ | 78 | $ | 234 | ||||||||
Total | Total | $ | 195 | $ | 97 | $ | 292 | Total | $ | 156 | $ | 78 | $ | 234 |
At December 31, 2022 | |||||||||||
Fair Value | |||||||||||
$ in millions | Level 2 | Level 31 | Total | ||||||||
Assets | |||||||||||
Loans | $ | 4,193 | $ | 6,610 | $ | 10,803 | |||||
Other assets—Other investments | — | 7 | 7 | ||||||||
Other assets—ROU assets | 4 | — | 4 | ||||||||
Total | $ | 4,197 | $ | 6,617 | $ | 10,814 | |||||
Liabilities | |||||||||||
Other liabilities and accrued expenses—Lending commitments | $ | 275 | $ | 153 | $ | 428 | |||||
Total | $ | 275 | $ | 153 | $ | 428 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||
Loans2 | Loans2 | $ | 19 | $ | (43) | Loans2 | $ | (35) | $ | (118) | $ | (117) | $ | (365) | ||||||||||||||
Other assets—Other investments3 | Other assets—Other investments3 | — | (2) | Other assets—Other investments3 | 5 | (2) | 4 | (8) | ||||||||||||||||||||
Other assets—Premises, equipment and software4 | Other assets—Premises, equipment and software4 | (3) | (1) | Other assets—Premises, equipment and software4 | (2) | (1) | (6) | (3) | ||||||||||||||||||||
Other assets—ROU assets5 | Other assets—ROU assets5 | — | (2) | Other assets—ROU assets5 | — | (1) | (10) | (7) | ||||||||||||||||||||
Total | Total | $ | 16 | $ | (48) | Total | $ | (32) | $ | (122) | $ | (129) | $ | (383) | ||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||||||||
Other liabilities and accrued expenses—Lending commitments2 | Other liabilities and accrued expenses—Lending commitments2 | $ | 34 | $ | (49) | Other liabilities and accrued expenses—Lending commitments2 | $ | 7 | $ | (13) | $ | 38 | $ | (172) | ||||||||||||||
Total | Total | $ | 34 | $ | (49) | Total | $ | 7 | $ | (13) | $ | 38 | $ | (172) |
50 |
Notes to Consolidated Financial Statements (Unaudited) |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||||||||
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 | $ | 111,258 | $ | 111,258 | $ | — | $ | — | $ | 111,258 | Cash and cash equivalents | $ | 108,401 | $ | 108,401 | $ | — | $ | — | $ | 108,401 | ||||||||||||
Investment securities—HTM | Investment securities—HTM | 74,012 | 26,253 | 37,090 | 1,076 | 64,419 | Investment securities—HTM | 70,705 | 24,323 | 32,964 | 1,037 | 58,324 | ||||||||||||||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | 121,877 | — | 119,067 | 2,826 | 121,893 | Securities purchased under agreements to resell | 101,569 | — | 99,208 | 2,355 | 101,563 | ||||||||||||||||||||||
Securities borrowed | Securities borrowed | 146,216 | — | 146,216 | — | 146,216 | Securities borrowed | 120,916 | — | 120,916 | — | 120,916 | ||||||||||||||||||||||
Customer and other receivables | Customer and other receivables | 69,249 | — | 65,219 | 3,750 | 68,969 | Customer and other receivables | 71,146 | — | 66,917 | 3,899 | 70,816 | ||||||||||||||||||||||
Loans1 | Loans1 | 214,696 | — | 24,842 | 183,035 | 207,877 | Loans1 | 216,972 | — | 27,399 | 180,698 | 208,097 | ||||||||||||||||||||||
Other assets | Other assets | 3,139 | — | 3,139 | — | 3,139 | Other assets | 704 | — | 704 | — | 704 | ||||||||||||||||||||||
Financial liabilities | Financial liabilities | Financial liabilities | ||||||||||||||||||||||||||||||||
Deposits | Deposits | $ | 342,481 | $ | — | $ | 342,312 | $ | — | $ | 342,312 | Deposits | $ | 339,140 | $ | — | $ | 338,677 | $ | — | $ | 338,677 | ||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | 59,619 | — | 59,599 | — | 59,599 | Securities sold under agreements to repurchase | 75,659 | — | 75,638 | — | 75,638 | ||||||||||||||||||||||
Securities loaned | Securities loaned | 15,588 | — | 15,583 | — | 15,583 | Securities loaned | 13,064 | — | 13,059 | — | 13,059 | ||||||||||||||||||||||
Other secured financings | Other secured financings | 3,665 | — | 3,665 | — | 3,665 | Other secured financings | 2,656 | — | 2,656 | — | 2,656 | ||||||||||||||||||||||
Customer and other payables | Customer and other payables | 220,556 | — | 220,556 | — | 220,556 | Customer and other payables | 200,415 | — | 200,415 | — | 200,415 | ||||||||||||||||||||||
Borrowings | Borrowings | 163,760 | — | 163,329 | 4 | 163,333 | Borrowings | 160,637 | — | 160,139 | 4 | 160,143 | ||||||||||||||||||||||
Commitment Amount | Commitment Amount | |||||||||||||||||||||||||||||||||
Lending commitments2 | Lending commitments2 | $ | 139,447 | $ | — | $ | 1,814 | $ | 914 | $ | 2,728 | Lending commitments2 | $ | 147,201 | $ | — | $ | 1,509 | $ | 749 | $ | 2,258 |
At December 31, 2022 | |||||||||||||||||
Carrying Value | Fair Value | ||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | 128,127 | $ | 128,127 | $ | — | $ | — | $ | 128,127 | |||||||
Investment securities—HTM | 75,634 | 26,754 | 37,218 | 1,034 | 65,006 | ||||||||||||
Securities purchased under agreements to resell | 113,899 | — | 111,188 | 2,681 | 113,869 | ||||||||||||
Securities borrowed | 133,374 | — | 133,370 | — | 133,370 | ||||||||||||
Customer and other receivables | 73,248 | — | 69,268 | 3,664 | 72,932 | ||||||||||||
Loans1 | 213,785 | — | 24,153 | 181,561 | 205,714 | ||||||||||||
Other assets | 704 | — | 704 | — | 704 | ||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | $ | 351,850 | $ | — | $ | 351,721 | $ | — | $ | 351,721 | |||||||
Securities sold under agreements to repurchase | 61,670 | — | 61,620 | — | 61,620 | ||||||||||||
Securities loaned | 15,679 | — | 15,673 | — | 15,673 | ||||||||||||
Other secured financings | 3,608 | — | 3,608 | — | 3,608 | ||||||||||||
Customer and other payables | 216,018 | — | 216,018 | — | 216,018 | ||||||||||||
Borrowings | 159,338 | — | 157,780 | 4 | 157,784 | ||||||||||||
Commitment Amount | |||||||||||||||||
Lending commitments2 | $ | 136,241 | $ | — | $ | 1,789 | $ | 1,077 | $ | 2,866 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Business Unit Responsible for Risk Management | Business Unit Responsible for Risk Management | Business Unit Responsible for Risk Management | ||||||||||||||
Equity | Equity | $ | 43,705 | $ | 38,945 | Equity | $ | 43,951 | $ | 38,945 | ||||||
Interest rates | Interest rates | 27,791 | 26,077 | Interest rates | 27,180 | 26,077 | ||||||||||
Commodities | Commodities | 11,187 | 10,717 | Commodities | 11,952 | 10,717 | ||||||||||
Credit | Credit | 1,954 | 1,564 | Credit | 2,093 | 1,564 | ||||||||||
Foreign exchange | Foreign exchange | 1,785 | 1,417 | Foreign exchange | 1,380 | 1,417 | ||||||||||
Total | Total | $ | 86,422 | $ | 78,720 | Total | $ | 86,556 | $ | 78,720 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Trading revenues | Trading revenues | $ | (4,378) | $ | 4,655 | Trading revenues | $ | 3,479 | $ | 4,034 | $ | (1,412) | $ | 16,361 | ||||||||||||||
Interest expense | Interest expense | 108 | 72 | Interest expense | 124 | 67 | 351 | 203 | ||||||||||||||||||||
Net revenues1 | Net revenues1 | $ | (4,486) | $ | 4,583 | Net revenues1 | $ | 3,355 | $ | 3,967 | $ | (1,763) | $ | 16,158 |
Three Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
$ in millions | Trading Revenues | OCI | Trading Revenues | OCI | ||||||||||
Loans and other receivables1 | $ | (8) | $ | — | $ | (68) | $ | — | ||||||
Lending commitments | — | — | (2) | — | ||||||||||
Deposits | — | 4 | — | (9) | ||||||||||
Borrowings | (6) | (547) | — | 1,091 |
Three Months Ended March 31, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
$ in millions | $ in millions | Trading Revenues | OCI | Trading Revenues | OCI | $ in millions | Trading Revenues | OCI | Trading Revenues | OCI | ||||||||||||||||||
Loans and other receivables1 | Loans and other receivables1 | $ | (43) | $ | — | $ | 24 | $ | — | Loans and other receivables1 | $ | (112) | $ | — | $ | (59) | $ | — | ||||||||||
Lending commitments | Lending commitments | 11 | — | — | — | Lending commitments | 11 | — | (3) | — | ||||||||||||||||||
Deposits | Deposits | — | 93 | — | (7) | Deposits | — | 21 | — | 5 | ||||||||||||||||||
Borrowings | Borrowings | (6) | (117) | — | 878 | Borrowings | (15) | (1,289) | 1 | 3,468 |
$ in millions | At March 31, 2023 | At December 31, 2022 | ||||||
Cumulative pre-tax DVA gain (loss) recognized in AOCI | $ | (481) | $ | (457) |
51 |
Notes to Consolidated Financial Statements (Unaudited) |
$ in millions | At September 30, 2023 | At December 31, 2022 | ||||||
Cumulative pre-tax DVA gain (loss) recognized in AOCI | $ | (1,725) | $ | (457) |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Loans and other receivables2 | Loans and other receivables2 | $ | 11,794 | $ | 11,916 | Loans and other receivables2 | $ | 10,707 | $ | 11,916 | ||||||
Nonaccrual loans2 | Nonaccrual loans2 | 9,071 | 9,128 | Nonaccrual loans2 | 8,162 | 9,128 | ||||||||||
Borrowings3 | Borrowings3 | 4,282 | 5,203 | Borrowings3 | 5,564 | 5,203 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Nonaccrual loans | Nonaccrual loans | $ | 504 | $ | 585 | Nonaccrual loans | $ | 410 | $ | 585 | ||||||
Nonaccrual loans 90 or more days past due | Nonaccrual loans 90 or more days past due | 55 | 116 | Nonaccrual loans 90 or more days past due | 49 | 116 |
Assets at March 31, 2023 | Assets at September 30, 2023 | |||||||||||||||||||||||||||
$ 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 | $ | 14 | $ | 4 | $ | — | $ | 18 | Interest rate | $ | 43 | $ | — | $ | — | $ | 43 | ||||||||||
Foreign exchange | Foreign exchange | 44 | 28 | — | 72 | Foreign exchange | 243 | 65 | — | 308 | ||||||||||||||||||
Total | Total | 58 | 32 | — | 90 | Total | 286 | 65 | — | 351 | ||||||||||||||||||
Not designated as accounting hedges | Not designated as accounting hedges | Not designated as accounting hedges | ||||||||||||||||||||||||||
Economic hedges of loans | Economic hedges of loans | Economic hedges of loans | ||||||||||||||||||||||||||
Credit | Credit | 1 | 58 | — | 59 | Credit | 2 | 47 | — | 49 | ||||||||||||||||||
Other derivatives | Other derivatives | Other derivatives | ||||||||||||||||||||||||||
Interest rate | Interest rate | 130,291 | 27,241 | 1,574 | 159,106 | Interest rate | 146,995 | 57,701 | 911 | 205,607 | ||||||||||||||||||
Credit | Credit | 6,952 | 2,782 | — | 9,734 | Credit | 6,409 | 3,461 | — | 9,870 | ||||||||||||||||||
Foreign exchange | Foreign exchange | 81,249 | 2,222 | 72 | 83,543 | Foreign exchange | 92,515 | 2,419 | 36 | 94,970 | ||||||||||||||||||
Equity | Equity | 18,623 | — | 30,532 | 49,155 | Equity | 17,550 | — | 31,421 | 48,971 | ||||||||||||||||||
Commodity and other | Commodity and other | 17,338 | — | 4,692 | 22,030 | Commodity and other | 14,536 | — | 2,783 | 17,319 | ||||||||||||||||||
Total | Total | 254,454 | 32,303 | 36,870 | 323,627 | Total | 278,007 | 63,628 | 35,151 | 376,786 | ||||||||||||||||||
Total gross derivatives | Total gross derivatives | $ | 254,512 | $ | 32,335 | $ | 36,870 | $ | 323,717 | Total gross derivatives | $ | 278,293 | $ | 63,693 | $ | 35,151 | $ | 377,137 | ||||||||||
Amounts offset | Amounts offset | Amounts offset | ||||||||||||||||||||||||||
Counterparty netting | Counterparty netting | (181,978) | (29,554) | (33,832) | (245,364) | Counterparty netting | (194,644) | (61,670) | (33,407) | (289,721) | ||||||||||||||||||
Cash collateral netting | Cash collateral netting | (35,948) | (1,982) | — | (37,930) | Cash collateral netting | (40,734) | (1,291) | — | (42,025) | ||||||||||||||||||
Total in Trading assets | Total in Trading assets | $ | 36,586 | $ | 799 | $ | 3,038 | $ | 40,423 | Total in Trading assets | $ | 42,915 | $ | 732 | $ | 1,744 | $ | 45,391 | ||||||||||
Amounts not offset1 | Amounts not offset1 | Amounts not offset1 | ||||||||||||||||||||||||||
Financial instruments collateral | Financial instruments collateral | (18,059) | — | — | (18,059) | Financial instruments collateral | (23,943) | — | — | (23,943) | ||||||||||||||||||
Net amounts | Net amounts | $ | 18,527 | $ | 799 | $ | 3,038 | $ | 22,364 | Net amounts | $ | 18,972 | $ | 732 | $ | 1,744 | $ | 21,448 | ||||||||||
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 | $ | 3,076 | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | 3,487 |
Liabilities at March 31, 2023 | ||||||||||||||
$ in millions | Bilateral OTC | Cleared OTC | Exchange-Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 363 | $ | — | $ | — | $ | 363 | ||||||
Foreign exchange | 126 | 65 | — | 191 | ||||||||||
Total | 489 | 65 | — | 554 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic hedges of loans | ||||||||||||||
Credit | 10 | 489 | — | 499 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 124,206 | 25,480 | 1,010 | 150,696 | ||||||||||
Credit | 6,659 | 2,853 | — | 9,512 | ||||||||||
Foreign exchange | 79,661 | 2,229 | 69 | 81,959 | ||||||||||
Equity | 26,072 | — | 29,659 | 55,731 | ||||||||||
Commodity and other | 14,096 | — | 5,162 | 19,258 | ||||||||||
Total | 250,704 | 31,051 | 35,900 | 317,655 | ||||||||||
Total gross derivatives | $ | 251,193 | $ | 31,116 | $ | 35,900 | $ | 318,209 | ||||||
Amounts offset | ||||||||||||||
Counterparty netting | (181,978) | (29,554) | (33,832) | (245,364) | ||||||||||
Cash collateral netting | (42,260) | (1,556) | — | (43,816) | ||||||||||
Total in Trading liabilities | $ | 26,955 | $ | 6 | $ | 2,068 | $ | 29,029 | ||||||
Amounts not offset1 | ||||||||||||||
Financial instruments collateral | (2,008) | — | (202) | (2,210) | ||||||||||
Net amounts | $ | 24,947 | $ | 6 | $ | 1,866 | $ | 26,819 | ||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | 5,497 |
Assets at December 31, 2022 | Liabilities at September 30, 2023 | |||||||||||||||||||||||||||
$ 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 | $ | 62 | $ | 1 | $ | — | $ | 63 | Interest rate | $ | 564 | $ | 1 | $ | — | $ | 565 | ||||||||||
Foreign exchange | Foreign exchange | 15 | 44 | — | 59 | Foreign exchange | 16 | 7 | — | 23 | ||||||||||||||||||
Total | Total | 77 | 45 | — | 122 | Total | 580 | 8 | — | 588 | ||||||||||||||||||
Not designated as accounting hedges | Not designated as accounting hedges | Not designated as accounting hedges | ||||||||||||||||||||||||||
Economic hedges of loans | Economic hedges of loans | Economic hedges of loans | ||||||||||||||||||||||||||
Credit | Credit | 2 | 59 | — | 61 | Credit | 24 | 581 | — | 605 | ||||||||||||||||||
Other derivatives | Other derivatives | Other derivatives | ||||||||||||||||||||||||||
Interest rate | Interest rate | 141,291 | 29,007 | 1,029 | 171,327 | Interest rate | 137,420 | 60,141 | 939 | 198,500 | ||||||||||||||||||
Credit | Credit | 5,888 | 2,352 | — | 8,240 | Credit | 6,187 | 3,301 | — | 9,488 | ||||||||||||||||||
Foreign exchange | Foreign exchange | 113,540 | 2,337 | 62 | 115,939 | Foreign exchange | 84,080 | 2,725 | 218 | 87,023 | ||||||||||||||||||
Equity | Equity | 16,505 | — | 26,850 | 43,355 | Equity | 26,669 | — | 32,182 | 58,851 | ||||||||||||||||||
Commodity and other | Commodity and other | 24,298 | — | 6,164 | 30,462 | Commodity and other | 12,418 | — | 3,398 | 15,816 | ||||||||||||||||||
Total | Total | 301,524 | 33,755 | 34,105 | 369,384 | Total | 266,798 | 66,748 | 36,737 | 370,283 | ||||||||||||||||||
Total gross derivatives | Total gross derivatives | $ | 301,601 | $ | 33,800 | $ | 34,105 | $ | 369,506 | Total gross derivatives | $ | 267,378 | $ | 66,756 | $ | 36,737 | $ | 370,871 | ||||||||||
Amounts offset | Amounts offset | Amounts offset | ||||||||||||||||||||||||||
Counterparty netting | Counterparty netting | (214,773) | (32,250) | (32,212) | (279,235) | Counterparty netting | (194,644) | (61,670) | (33,407) | (289,721) | ||||||||||||||||||
Cash collateral netting | Cash collateral netting | (44,711) | (1,348) | — | (46,059) | Cash collateral netting | (43,675) | (4,864) | — | (48,539) | ||||||||||||||||||
Total in Trading assets | $ | 42,117 | $ | 202 | $ | 1,893 | $ | 44,212 | ||||||||||||||||||||
Total in Trading liabilities | Total in Trading liabilities | $ | 29,059 | $ | 222 | $ | 3,330 | $ | 32,611 | |||||||||||||||||||
Amounts not offset1 | Amounts not offset1 | Amounts not offset1 | ||||||||||||||||||||||||||
Financial instruments collateral | Financial instruments collateral | (19,406) | — | — | (19,406) | Financial instruments collateral | (4,049) | — | (562) | (4,611) | ||||||||||||||||||
Net amounts | Net amounts | $ | 22,711 | $ | 202 | $ | 1,893 | $ | 24,806 | Net amounts | $ | 25,010 | $ | 222 | $ | 2,768 | $ | 28,000 | ||||||||||
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 | $ | 4,318 | Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | 4,581 |
Notes to Consolidated Financial Statements (Unaudited) |
Assets at December 31, 2022 | ||||||||||||||
$ in millions | Bilateral OTC | Cleared OTC | Exchange-Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 62 | $ | 1 | $ | — | $ | 63 | ||||||
Foreign exchange | 15 | 44 | — | 59 | ||||||||||
Total | 77 | 45 | — | 122 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic hedges of loans | ||||||||||||||
Credit | 2 | 59 | — | 61 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 141,291 | 29,007 | 1,029 | 171,327 | ||||||||||
Credit | 5,888 | 2,352 | — | 8,240 | ||||||||||
Foreign exchange | 113,540 | 2,337 | 62 | 115,939 | ||||||||||
Equity | 16,505 | — | 26,850 | 43,355 | ||||||||||
Commodity and other | 24,298 | — | 6,164 | 30,462 | ||||||||||
Total | 301,524 | 33,755 | 34,105 | 369,384 | ||||||||||
Total gross derivatives | $ | 301,601 | $ | 33,800 | $ | 34,105 | $ | 369,506 | ||||||
Amounts offset | ||||||||||||||
Counterparty netting | (214,773) | (32,250) | (32,212) | (279,235) | ||||||||||
Cash collateral netting | (44,711) | (1,348) | — | (46,059) | ||||||||||
Total in Trading assets | $ | 42,117 | $ | 202 | $ | 1,893 | $ | 44,212 | ||||||
Amounts not offset1 | ||||||||||||||
Financial instruments collateral | (19,406) | — | — | (19,406) | ||||||||||
Net amounts | $ | 22,711 | $ | 202 | $ | 1,893 | $ | 24,806 | ||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | 4,318 |
Liabilities at December 31, 2022 | ||||||||||||||
$ in millions | Bilateral OTC | Cleared OTC | Exchange-Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 457 | $ | 4 | $ | — | $ | 461 | ||||||
Foreign exchange | 550 | 101 | — | 651 | ||||||||||
Total | 1,007 | 105 | — | 1,112 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic hedges of loans | ||||||||||||||
Credit | 9 | 368 | — | 377 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 135,661 | 28,581 | 455 | 164,697 | ||||||||||
Credit | 5,535 | 2,390 | — | 7,925 | ||||||||||
Foreign exchange | 110,322 | 2,512 | 104 | 112,938 | ||||||||||
Equity | 23,138 | — | 28,193 | 51,331 | ||||||||||
Commodity and other | 19,631 | — | 6,748 | 26,379 | ||||||||||
Total | 294,296 | 33,851 | 35,500 | 363,647 | ||||||||||
Total gross derivatives | $ | 295,303 | $ | 33,956 | $ | 35,500 | $ | 364,759 | ||||||
Amounts offset | ||||||||||||||
Counterparty netting | (214,773) | (32,250) | (32,212) | (279,235) | ||||||||||
Cash collateral netting | (45,884) | (1,505) | — | (47,389) | ||||||||||
Total in Trading liabilities | $ | 34,646 | $ | 201 | $ | 3,288 | $ | 38,135 | ||||||
Amounts not offset1 | ||||||||||||||
Financial instruments collateral | (2,545) | — | (1,139) | (3,684) | ||||||||||
Net amounts | $ | 32,101 | $ | 201 | $ | 2,149 | $ | 34,451 | ||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | 6,430 |
Assets at March 31, 2023 | Assets at September 30, 2023 | |||||||||||||||||||||||||||
$ in billions | $ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | $ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||||||||||
Designated as accounting hedges | Designated as accounting hedges | Designated as accounting hedges | ||||||||||||||||||||||||||
Interest rate | Interest rate | $ | — | $ | 66 | $ | — | $ | 66 | Interest rate | $ | — | $ | 67 | $ | — | $ | 67 | ||||||||||
Foreign exchange | Foreign exchange | 4 | 1 | — | 5 | Foreign exchange | 12 | 3 | — | 15 | ||||||||||||||||||
Total | Total | 4 | 67 | — | 71 | Total | 12 | 70 | — | 82 | ||||||||||||||||||
Not designated as accounting hedges | Not designated as accounting hedges | Not designated as accounting hedges | ||||||||||||||||||||||||||
Economic hedges of loans | Economic hedges of loans | Economic hedges of loans | ||||||||||||||||||||||||||
Credit | Credit | — | 2 | — | 2 | Credit | — | 1 | — | 1 | ||||||||||||||||||
Other derivatives | Other derivatives | Other derivatives | ||||||||||||||||||||||||||
Interest rate | Interest rate | 3,679 | 9,530 | 696 | 13,905 | Interest rate | 3,943 | 8,316 | 563 | 12,822 | ||||||||||||||||||
Credit | Credit | 214 | 136 | — | 350 | Credit | 209 | 167 | — | 376 | ||||||||||||||||||
Foreign exchange | Foreign exchange | 3,803 | 190 | 16 | 4,009 | Foreign exchange | 3,413 | 194 | 7 | 3,614 | ||||||||||||||||||
Equity | Equity | 521 | — | 390 | 911 | Equity | 559 | — | 437 | 996 | ||||||||||||||||||
Commodity and other | Commodity and other | 141 | — | 66 | 207 | Commodity and other | 138 | — | 72 | 210 | ||||||||||||||||||
Total | Total | 8,358 | 9,858 | 1,168 | 19,384 | Total | 8,262 | 8,678 | 1,079 | 18,019 | ||||||||||||||||||
Total gross derivatives | Total gross derivatives | $ | 8,362 | $ | 9,925 | $ | 1,168 | $ | 19,455 | Total gross derivatives | $ | 8,274 | $ | 8,748 | $ | 1,079 | $ | 18,101 |
Liabilities at March 31, 2023 | Liabilities at September 30, 2023 | |||||||||||||||||||||||||||
$ in billions | $ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | $ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||||||||||
Designated as accounting hedges | Designated as accounting hedges | Designated as accounting hedges | ||||||||||||||||||||||||||
Interest rate | Interest rate | $ | 2 | $ | 183 | $ | — | $ | 185 | Interest rate | $ | 2 | $ | 195 | $ | — | $ | 197 | ||||||||||
Foreign exchange | Foreign exchange | 10 | 3 | — | 13 | Foreign exchange | 2 | 1 | — | 3 | ||||||||||||||||||
Total | Total | 12 | 186 | — | 198 | Total | 4 | 196 | — | 200 | ||||||||||||||||||
Not designated as accounting hedges | Not designated as accounting hedges | Not designated as accounting hedges | ||||||||||||||||||||||||||
Economic hedges of loans | Economic hedges of loans | Economic hedges of loans | ||||||||||||||||||||||||||
Credit | Credit | — | 18 | — | 18 | Credit | 1 | 20 | — | 21 | ||||||||||||||||||
Other derivatives | Other derivatives | Other derivatives | ||||||||||||||||||||||||||
Interest rate | Interest rate | 3,975 | 8,944 | 432 | 13,351 | Interest rate | 4,123 | 8,125 | 466 | 12,714 | ||||||||||||||||||
Credit | Credit | 205 | 136 | — | 341 | Credit | 221 | 161 | — | 382 | ||||||||||||||||||
Foreign exchange | Foreign exchange | 3,910 | 147 | 34 | 4,091 | Foreign exchange | 3,387 | 167 | 28 | 3,582 | ||||||||||||||||||
Equity | Equity | 542 | — | 582 | 1,124 | Equity | 596 | — | 621 | 1,217 | ||||||||||||||||||
Commodity and other | Commodity and other | 97 | — | 87 | 184 | Commodity and other | 106 | — | 83 | 189 | ||||||||||||||||||
Total | Total | 8,729 | 9,245 | 1,135 | 19,109 | Total | 8,434 | 8,473 | 1,198 | 18,105 | ||||||||||||||||||
Total gross derivatives | Total gross derivatives | $ | 8,741 | $ | 9,431 | $ | 1,135 | $ | 19,307 | Total gross derivatives | $ | 8,438 | $ | 8,669 | $ | 1,198 | $ | 18,305 |
Assets at December 31, 2022 | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange-Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 2 | $ | 62 | $ | — | $ | 64 | ||||||
Foreign exchange | 2 | 2 | — | 4 | ||||||||||
Total | 4 | 64 | — | 68 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic hedges of loans | ||||||||||||||
Credit | — | 3 | — | 3 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 3,404 | 7,609 | 614 | 11,627 | ||||||||||
Credit | 190 | 130 | — | 320 | ||||||||||
Foreign exchange | 3,477 | 126 | 15 | 3,618 | ||||||||||
Equity | 488 | — | 358 | 846 | ||||||||||
Commodity and other | 141 | — | 59 | 200 | ||||||||||
Total | 7,700 | 7,868 | 1,046 | 16,614 | ||||||||||
Total gross derivatives | $ | 7,704 | $ | 7,932 | $ | 1,046 | $ | 16,682 |
53 | September 2023 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
Liabilities at December 31, 2022 | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange-Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | 3 | $ | 187 | $ | — | $ | 190 | ||||||
Foreign exchange | 12 | 2 | — | 14 | ||||||||||
Total | 15 | 189 | — | 204 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic hedges of loans | ||||||||||||||
Credit | — | 15 | — | 15 | ||||||||||
Other derivatives | ||||||||||||||
Interest rate | 3,436 | 7,761 | 497 | 11,694 | ||||||||||
Credit | 199 | 125 | — | 324 | ||||||||||
Foreign exchange | 3,516 | 123 | 35 | 3,674 | ||||||||||
Equity | 488 | — | 552 | 1,040 | ||||||||||
Commodity and other | 101 | — | 79 | 180 | ||||||||||
Total | 7,740 | 8,024 | 1,163 | 16,927 | ||||||||||
Total gross derivatives | $ | 7,755 | $ | 8,213 | $ | 1,163 | $ | 17,131 |
(Unaudited) |
Three Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
March 31, | September 30, | |||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
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 | $ | (372) | $ | 795 | Interest rate contracts | $ | 259 | $ | 846 | $ | 457 | $ | 2,037 | ||||||||||||||
Investment Securities—AFS | Investment Securities—AFS | 381 | (751) | Investment Securities—AFS | (239) | (836) | (423) | (1,960) | ||||||||||||||||||||
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 | $ | 2,284 | $ | (6,233) | Interest rate contracts | $ | (2,742) | $ | (5,379) | $ | (2,806) | $ | (15,629) | ||||||||||||||
Deposits | Deposits | (54) | 88 | Deposits | (15) | 25 | (31) | 143 | ||||||||||||||||||||
Borrowings | Borrowings | (2,240) | 6,155 | Borrowings | 2,781 | 5,372 | 2,856 | 15,499 | ||||||||||||||||||||
Net investment hedges—Foreign exchange contracts | Net investment hedges—Foreign exchange contracts | Net investment hedges—Foreign exchange contracts | ||||||||||||||||||||||||||
Recognized in OCI | Recognized in OCI | $ | (89) | $ | 139 | Recognized in OCI | $ | 375 | $ | 662 | $ | 381 | $ | 1,436 | ||||||||||||||
Forward points excluded from hedge effectiveness testing—Recognized in Interest income | Forward points excluded from hedge effectiveness testing—Recognized in Interest income | 43 | (41) | Forward points excluded from hedge effectiveness testing—Recognized in Interest income | 60 | 18 | 166 | (59) | ||||||||||||||||||||
Cash flow hedges—Interest rate contracts1 | Cash flow hedges—Interest rate contracts1 | Cash flow hedges—Interest rate contracts1 | ||||||||||||||||||||||||||
Recognized in OCI | Recognized in OCI | $ | 7 | $ | — | Recognized in OCI | $ | (12) | $ | — | $ | (30) | $ | — | ||||||||||||||
Less: Realized gains (losses) (pre-tax) reclassified from AOCI to interest income | Less: Realized gains (losses) (pre-tax) reclassified from AOCI to interest income | (1) | — | Less: Realized gains (losses) (pre-tax) reclassified from AOCI to interest income | (6) | — | (9) | — | ||||||||||||||||||||
Net change in cash flow hedges included within AOCI | Net change in cash flow hedges included within AOCI | 8 | — | Net change in cash flow hedges included within AOCI | (6) | — | (21) | — |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Investment Securities—AFS | Investment Securities—AFS | Investment Securities—AFS | ||||||||||||||
Amortized cost basis currently or previously hedged | Amortized cost basis currently or previously hedged | $ | 34,559 | $ | 34,073 | Amortized cost basis currently or previously hedged | $ | 33,348 | $ | 34,073 | ||||||
Basis adjustments included in amortized cost1 | Basis adjustments included in amortized cost1 | $ | (1,152) | $ | (1,628) | Basis adjustments included in amortized cost1 | $ | (1,800) | $ | (1,628) | ||||||
Deposits | Deposits | Deposits | ||||||||||||||
Carrying amount currently or previously hedged | Carrying amount currently or previously hedged | $ | 6,162 | $ | 3,735 | Carrying amount currently or previously hedged | $ | 10,278 | $ | 3,735 | ||||||
Basis adjustments included in carrying amount1 | Basis adjustments included in carrying amount1 | $ | (65) | $ | (119) | Basis adjustments included in carrying amount1 | $ | (88) | $ | (119) | ||||||
Borrowings | Borrowings | Borrowings | ||||||||||||||
Carrying amount currently or previously hedged | Carrying amount currently or previously hedged | $ | 147,736 | $ | 146,025 | Carrying amount currently or previously hedged | $ | 147,076 | $ | 146,025 | ||||||
Basis adjustments included in carrying amount—Outstanding hedges | Basis adjustments included in carrying amount—Outstanding hedges | $ | (10,510) | $ | (12,748) | Basis adjustments included in carrying amount—Outstanding hedges | $ | (15,567) | $ | (12,748) | ||||||
Basis adjustments included in carrying amount—Terminated hedges | Basis adjustments included in carrying amount—Terminated hedges | $ | (692) | $ | (715) | Basis adjustments included in carrying amount—Terminated hedges | $ | (677) | $ | (715) |
Three Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
March 31, | September 30, | |||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Recognized in Other revenues | Recognized in Other revenues | Recognized in Other revenues | ||||||||||||||||||||||||||
Credit contracts1 | Credit contracts1 | $ | (161) | $ | 51 | Credit contracts1 | $ | (104) | $ | (44) | $ | (330) | $ | 160 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Net derivative liabilities with credit risk-related contingent features | Net derivative liabilities with credit risk-related contingent features | $ | 18,180 | $ | 20,287 | Net derivative liabilities with credit risk-related contingent features | $ | 19,204 | $ | 20,287 | ||||||
Collateral posted | Collateral posted | 13,064 | 12,268 | Collateral posted | 13,338 | 12,268 |
$ in millions | At 2023 | ||||
One-notch downgrade | $ | ||||
Two-notch downgrade | |||||
Bilateral downgrade agreements included in the amounts above1 | $ |
Years to Maturity at March 31, 2023 | |||||||||||||||||
$ in billions | < 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||
Single-name CDS | |||||||||||||||||
Investment grade | $ | 12 | $ | 30 | $ | 33 | $ | 15 | $ | 90 | |||||||
Non-investment grade | 5 | 13 | 17 | 6 | 41 | ||||||||||||
Total | $ | 17 | $ | 43 | $ | 50 | $ | 21 | $ | 131 | |||||||
Index and basket CDS | |||||||||||||||||
Investment grade | $ | 3 | $ | 9 | $ | 14 | $ | 1 | $ | 27 | |||||||
Non-investment grade | 8 | 21 | 104 | 49 | 182 | ||||||||||||
Total | $ | 11 | $ | 30 | $ | 118 | $ | 50 | $ | 209 | |||||||
Total CDS sold | $ | 28 | $ | 73 | $ | 168 | $ | 71 | $ | 340 | |||||||
Other credit contracts | — | — | — | — | — | ||||||||||||
Total credit protection sold | $ | 28 | $ | 73 | $ | 168 | $ | 71 | $ | 340 | |||||||
CDS protection sold with identical protection purchased | $ | 282 |
54 |
Notes to Consolidated Financial Statements (Unaudited) |
Years to Maturity at September 30, 2023 | |||||||||||||||||
$ in billions | < 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||
Single-name CDS | |||||||||||||||||
Investment grade | $ | 16 | $ | 30 | $ | 39 | $ | 14 | $ | 99 | |||||||
Non-investment grade | 7 | 13 | 20 | 6 | 46 | ||||||||||||
Total | $ | 23 | $ | 43 | $ | 59 | $ | 20 | $ | 145 | |||||||
Index and basket CDS | |||||||||||||||||
Investment grade | $ | 3 | $ | 18 | $ | 51 | $ | 21 | $ | 93 | |||||||
Non-investment grade | 8 | 11 | 85 | 35 | 139 | ||||||||||||
Total | $ | 11 | $ | 29 | $ | 136 | $ | 56 | $ | 232 | |||||||
Total CDS sold | $ | 34 | $ | 72 | $ | 195 | $ | 76 | $ | 377 | |||||||
Other credit contracts | — | — | — | 3 | 3 | ||||||||||||
Total credit protection sold | $ | 34 | $ | 72 | $ | 195 | $ | 79 | $ | 380 | |||||||
CDS protection sold with identical protection purchased | $ | 312 |
Years to Maturity at December 31, 2022 | |||||||||||||||||
$ in billions | < 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||
Single-name CDS | |||||||||||||||||
Investment grade | $ | 12 | $ | 29 | $ | 29 | $ | 9 | $ | 79 | |||||||
Non-investment grade | 5 | 13 | 16 | 2 | 36 | ||||||||||||
Total | $ | 17 | $ | 42 | $ | 45 | $ | 11 | $ | 115 | |||||||
Index and basket CDS | |||||||||||||||||
Investment grade | $ | 3 | $ | 13 | $ | 37 | $ | 3 | $ | 56 | |||||||
Non-investment grade | 8 | 17 | 108 | 19 | 152 | ||||||||||||
Total | $ | 11 | $ | 30 | $ | 145 | $ | 22 | $ | 208 | |||||||
Total CDS sold | $ | 28 | $ | 72 | $ | 190 | $ | 33 | $ | 323 | |||||||
Other credit contracts | — | — | — | — | — | ||||||||||||
Total credit protection sold | $ | 28 | $ | 72 | $ | 190 | $ | 33 | $ | 323 | |||||||
CDS protection sold with identical protection purchased | $ | 262 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Single-name CDS | Single-name CDS | Single-name CDS | ||||||||||||||
Investment grade | Investment grade | $ | 1,168 | $ | 762 | Investment grade | $ | 1,472 | $ | 762 | ||||||
Non-investment grade | Non-investment grade | (722) | (808) | Non-investment grade | (228) | (808) | ||||||||||
Total | Total | $ | 446 | $ | (46) | Total | $ | 1,244 | $ | (46) | ||||||
Index and basket CDS | Index and basket CDS | Index and basket CDS | ||||||||||||||
Investment grade | Investment grade | $ | 924 | $ | 859 | Investment grade | $ | 1,295 | $ | 859 | ||||||
Non-investment grade | Non-investment grade | (2,110) | (1,812) | Non-investment grade | (1,855) | (1,812) | ||||||||||
Total | Total | $ | (1,186) | $ | (953) | Total | $ | (560) | $ | (953) | ||||||
Total CDS sold | Total CDS sold | $ | (740) | $ | (999) | Total CDS sold | $ | 684 | $ | (999) | ||||||
Other credit contracts | Other credit contracts | 6 | (1) | Other credit contracts | 178 | (1) | ||||||||||
Total credit protection sold | Total credit protection sold | $ | (734) | $ | (1,000) | Total credit protection sold | $ | 862 | $ | (1,000) |
Notional | Notional | |||||||||||||||
$ in billions | $ in billions | At March 31, 2023 | At December 31, 2022 | $ in billions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Single name | Single name | $ | 159 | $ | 140 | Single name | $ | 172 | $ | 140 | ||||||
Index and basket | Index and basket | 181 | 173 | Index and basket | 197 | 173 | ||||||||||
Tranched index and basket | Tranched index and basket | 31 | 26 | Tranched index and basket | 32 | 26 | ||||||||||
Total | Total | $ | 371 | $ | 339 | Total | $ | 401 | $ | 339 |
Fair Value Asset (Liability) | Fair Value Asset (Liability) | |||||||||||||||
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Single name | Single name | $ | (645) | $ | (33) | Single name | $ | (1,553) | $ | (33) | ||||||
Index and basket | Index and basket | 1,595 | 1,248 | Index and basket | 1,023 | 1,248 | ||||||||||
Tranched index and basket | Tranched index and basket | (428) | (217) | Tranched index and basket | (481) | (217) | ||||||||||
Total | Total | $ | 522 | $ | 998 | Total | $ | (1,011) | $ | 998 |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||
$ 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 | $ | 54,861 | $ | 31 | $ | 1,845 | $ | 53,047 | U.S. Treasury securities | $ | 47,939 | $ | 27 | $ | 1,394 | $ | 46,572 | ||||||||||
U.S. agency securities2 | U.S. agency securities2 | 25,272 | 2 | 2,508 | 22,766 | U.S. agency securities2 | 26,221 | — | 3,436 | 22,785 | ||||||||||||||||||
Agency CMBS | Agency CMBS | 6,020 | — | 465 | 5,555 | Agency CMBS | 5,741 | — | 504 | 5,237 | ||||||||||||||||||
State and municipal securities | State and municipal securities | 1,492 | 32 | 22 | 1,502 | State and municipal securities | 817 | 32 | 20 | 829 | ||||||||||||||||||
FFELP student loan ABS3 | FFELP student loan ABS3 | 1,093 | — | 31 | 1,062 | FFELP student loan ABS3 | 855 | — | 17 | 838 | ||||||||||||||||||
Other ABS | Other ABS | — | — | — | — | |||||||||||||||||||||||
Total AFS securities | Total AFS securities | 88,738 | 65 | 4,871 | 83,932 | Total AFS securities | 81,573 | 59 | 5,371 | 76,261 | ||||||||||||||||||
HTM securities | HTM securities | HTM securities | ||||||||||||||||||||||||||
U.S. Treasury securities | U.S. Treasury securities | 27,709 | — | 1,456 | 26,253 | U.S. Treasury securities | 26,208 | — | 1,885 | 24,323 | ||||||||||||||||||
U.S. agency securities2 | U.S. agency securities2 | 43,343 | — | 7,885 | 35,458 | U.S. agency securities2 | 41,612 | — | 10,136 | 31,476 | ||||||||||||||||||
Agency CMBS | Agency CMBS | 1,770 | — | 138 | 1,632 | Agency CMBS | 1,656 | — | 168 | 1,488 | ||||||||||||||||||
Non-agency CMBS | Non-agency CMBS | 1,190 | 2 | 116 | 1,076 | Non-agency CMBS | 1,229 | — | 192 | 1,037 | ||||||||||||||||||
Total HTM securities | Total HTM securities | 74,012 | 2 | 9,595 | 64,419 | Total HTM securities | 70,705 | — | 12,381 | 58,324 | ||||||||||||||||||
Total investment securities | Total investment securities | $ | 162,750 | $ | 67 | $ | 14,466 | $ | 148,351 | Total investment securities | $ | 152,278 | $ | 59 | $ | 17,752 | $ | 134,585 |
At December 31, 2022 | ||||||||||||||
$ in millions | Amortized Cost1 | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||
AFS securities | ||||||||||||||
U.S. Treasury securities | $ | 56,103 | $ | 17 | $ | 2,254 | $ | 53,866 | ||||||
U.S. agency securities2 | 23,926 | 1 | 2,753 | 21,174 | ||||||||||
Agency CMBS | 5,998 | — | 470 | 5,528 | ||||||||||
Non-agency CMBS | — | — | — | — | ||||||||||
Corporate bonds | — | — | — | — | ||||||||||
State and municipal securities | 2,598 | 71 | 42 | 2,627 | ||||||||||
FFELP student loan ABS3 | 1,147 | — | 45 | 1,102 | ||||||||||
Total AFS securities | 89,772 | 89 | 5,564 | 84,297 | ||||||||||
HTM securities | ||||||||||||||
U.S. Treasury securities | 28,599 | — | 1,845 | 26,754 | ||||||||||
U.S. agency securities2 | 44,038 | — | 8,487 | 35,551 | ||||||||||
Agency CMBS | 1,819 | — | 152 | 1,667 | ||||||||||
Non-agency CMBS | 1,178 | — | 144 | 1,034 | ||||||||||
Total HTM securities | 75,634 | — | 10,628 | 65,006 | ||||||||||
Total investment securities | $ | 165,406 | $ | 89 | $ | 16,192 | $ | 149,303 |
55 | September 2023 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
At December 31, 2022 | ||||||||||||||
$ in millions | Amortized Cost1 | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||
AFS securities | ||||||||||||||
U.S. Treasury securities | $ | 56,103 | $ | 17 | $ | 2,254 | $ | 53,866 | ||||||
U.S. agency securities2 | 23,926 | 1 | 2,753 | 21,174 | ||||||||||
Agency CMBS | 5,998 | — | 470 | 5,528 | ||||||||||
State and municipal securities | 2,598 | 71 | 42 | 2,627 | ||||||||||
FFELP student loan ABS3 | 1,147 | — | 45 | 1,102 | ||||||||||
Total AFS securities | 89,772 | 89 | 5,564 | 84,297 | ||||||||||
HTM securities | ||||||||||||||
U.S. Treasury securities | 28,599 | — | 1,845 | 26,754 | ||||||||||
U.S. agency securities2 | 44,038 | — | 8,487 | 35,551 | ||||||||||
Agency CMBS | 1,819 | — | 152 | 1,667 | ||||||||||
Non-agency CMBS | 1,178 | — | 144 | 1,034 | ||||||||||
Total HTM securities | 75,634 | — | 10,628 | 65,006 | ||||||||||
Total investment securities | $ | 165,406 | $ | 89 | $ | 16,192 | $ | 149,303 |
(Unaudited) |
At March 31, 2023 | At December 31, 2022 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||
$ 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 | $ | 22,043 | $ | 1,078 | $ | 42,144 | $ | 1,711 | Less than 12 months | $ | 6,932 | $ | 214 | $ | 42,144 | $ | 1,711 | ||||||||||
12 months or longer | 12 months or longer | 24,271 | 767 | 11,454 | 543 | 12 months or longer | 31,798 | 1,180 | 11,454 | 543 | ||||||||||||||||||
Total | Total | 46,314 | 1,845 | 53,598 | 2,254 | Total | 38,730 | 1,394 | 53,598 | 2,254 | ||||||||||||||||||
U.S. agency securities | U.S. agency securities | U.S. agency securities | ||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | 8,293 | 485 | 13,662 | 1,271 | Less than 12 months | 4,716 | 91 | 13,662 | 1,271 | ||||||||||||||||||
12 months or longer | 12 months or longer | 13,505 | 2,023 | 7,060 | 1,482 | 12 months or longer | 17,968 | 3,345 | 7,060 | 1,482 | ||||||||||||||||||
Total | Total | 21,798 | 2,508 | 20,722 | 2,753 | Total | 22,684 | 3,436 | 20,722 | 2,753 | ||||||||||||||||||
Agency CMBS | Agency CMBS | Agency CMBS | ||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | 5,299 | 436 | 5,343 | 448 | Less than 12 months | 2,111 | 201 | 5,343 | 448 | ||||||||||||||||||
12 months or longer | 12 months or longer | 256 | 29 | 185 | 22 | 12 months or longer | 3,053 | 303 | 185 | 22 | ||||||||||||||||||
Total | Total | 5,555 | 465 | 5,528 | 470 | Total | 5,164 | 504 | 5,528 | 470 | ||||||||||||||||||
State and municipal securities | State and municipal securities | State and municipal securities | ||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | 231 | 1 | 2,106 | 40 | Less than 12 months | 288 | 1 | 2,106 | 40 | ||||||||||||||||||
12 months or longer | 12 months or longer | 516 | 21 | 65 | 2 | 12 months or longer | 253 | 19 | 65 | 2 | ||||||||||||||||||
Total | Total | 747 | 22 | 2,171 | 42 | Total | 541 | 20 | 2,171 | 42 | ||||||||||||||||||
FFELP student loan ABS | FFELP student loan ABS | FFELP student loan ABS | ||||||||||||||||||||||||||
Less than 12 months | Less than 12 months | 475 | 11 | 627 | 23 | Less than 12 months | 68 | 1 | 627 | 23 | ||||||||||||||||||
12 months or longer | 12 months or longer | 573 | 20 | 476 | 22 | 12 months or longer | 693 | 16 | 476 | 22 | ||||||||||||||||||
Total | Total | 1,048 | 31 | 1,103 | 45 | Total | 761 | 17 | 1,103 | 45 | ||||||||||||||||||
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 | 36,341 | 2,011 | 63,882 | 3,493 | Less than 12 months | 14,115 | 508 | 63,882 | 3,493 | ||||||||||||||||||
12 months or longer | 12 months or longer | 39,121 | 2,860 | 19,240 | 2,071 | 12 months or longer | 53,765 | 4,863 | 19,240 | 2,071 | ||||||||||||||||||
Total | Total | $ | 75,462 | $ | 4,871 | $ | 83,122 | $ | 5,564 | Total | $ | 67,880 | $ | 5,371 | $ | 83,122 | $ | 5,564 |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||
$ in millions | $ in millions | Amortized Cost1 | Fair Value | Annualized Average Yield2,3 | $ in millions | Amortized Cost1 | Fair Value | Annualized Average Yield2,3 | ||||||||||||||
AFS securities | AFS securities | AFS securities | ||||||||||||||||||||
U.S. Treasury securities: | U.S. Treasury securities: | U.S. Treasury securities: | ||||||||||||||||||||
Due within 1 year | Due within 1 year | $ | 16,150 | $ | 15,862 | 1.0 | % | Due within 1 year | $ | 15,009 | $ | 14,680 | 1.1 | % | ||||||||
After 1 year through 5 years | After 1 year through 5 years | 38,017 | 36,492 | 1.3 | % | After 1 year through 5 years | 32,224 | 31,187 | 1.8 | % | ||||||||||||
After 5 years through 10 years | After 5 years through 10 years | 694 | 693 | 3.6 | % | After 5 years through 10 years | 706 | 705 | 3.9 | % | ||||||||||||
Total | Total | 54,861 | 53,047 | Total | 47,939 | 46,572 | ||||||||||||||||
U.S. agency securities: | U.S. agency securities: | U.S. agency securities: | ||||||||||||||||||||
Due within 1 year | Due within 1 year | 23 | 22 | (0.2) | % | Due within 1 year | 24 | 23 | (0.6) | % | ||||||||||||
After 1 year through 5 years | After 1 year through 5 years | 422 | 394 | 1.5 | % | After 1 year through 5 years | 431 | 397 | 1.6 | % | ||||||||||||
After 5 years through 10 years | After 5 years through 10 years | 716 | 659 | 1.8 | % | After 5 years through 10 years | 572 | 510 | 1.8 | % | ||||||||||||
After 10 years | After 10 years | 24,111 | 21,691 | 3.1 | % | After 10 years | 25,194 | 21,855 | 3.6 | % | ||||||||||||
Total | Total | 25,272 | 22,766 | Total | 26,221 | 22,785 | ||||||||||||||||
Agency CMBS: | Agency CMBS: | Agency CMBS: | ||||||||||||||||||||
Due within 1 year | Due within 1 year | 1 | 1 | (2.2) | % | |||||||||||||||||
After 1 year through 5 years | After 1 year through 5 years | 1,773 | 1,676 | 1.8 | % | After 1 year through 5 years | 2,068 | 1,973 | 1.8 | % | ||||||||||||
After 5 years through 10 years | After 5 years through 10 years | 2,992 | 2,823 | 2.0 | % | After 5 years through 10 years | 2,459 | 2,309 | 2.1 | % | ||||||||||||
After 10 years | After 10 years | 1,255 | 1,056 | 1.3 | % | After 10 years | 1,213 | 954 | 1.4 | % | ||||||||||||
Total | Total | 6,020 | 5,555 | Total | 5,741 | 5,237 | ||||||||||||||||
State and municipal securities: | State and municipal securities: | State and municipal securities: | ||||||||||||||||||||
Due within 1 year | Due within 1 year | 12 | 12 | 3.8 | % | Due within 1 year | 24 | 24 | 5.2 | % | ||||||||||||
After 1 year through 5 years | After 1 year through 5 years | 48 | 49 | 3.9 | % | After 1 year through 5 years | 172 | 172 | 4.8 | % | ||||||||||||
After 5 years through 10 years | After 5 years through 10 years | 88 | 90 | 3.8 | % | After 5 years through 10 years | 17 | 20 | 4.7 | % | ||||||||||||
After 10 Years | After 10 Years | 1,344 | 1,351 | 3.9 | % | After 10 Years | 604 | 613 | 4.3 | % | ||||||||||||
Total | Total | 1,492 | 1,502 | Total | 817 | 829 | ||||||||||||||||
FFELP student loan ABS: | FFELP student loan ABS: | FFELP student loan ABS: | ||||||||||||||||||||
After 1 year through 5 years | After 1 year through 5 years | 110 | 105 | 5.5 | % | After 1 year through 5 years | 101 | 98 | 5.8 | % | ||||||||||||
After 5 years through 10 years | After 5 years through 10 years | 114 | 109 | 5.4 | % | After 5 years through 10 years | 104 | 100 | 6.0 | % | ||||||||||||
After 10 years | After 10 years | 869 | 848 | 5.6 | % | After 10 years | 650 | 640 | 6.3 | % | ||||||||||||
Total | Total | 1,093 | 1,062 | Total | 855 | 838 | ||||||||||||||||
Total AFS securities | Total AFS securities | 88,738 | 83,932 | 1.9 | % | Total AFS securities | 81,573 | 76,261 | 2.3 | % |
56 |
Notes to Consolidated Financial Statements (Unaudited) |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||
$ in millions | $ in millions | Amortized Cost1 | Fair Value | Annualized Average Yield2 | $ in millions | Amortized Cost1 | Fair Value | Annualized Average Yield2 | ||||||||||||||
HTM securities | HTM securities | HTM securities | ||||||||||||||||||||
U.S. Treasury securities: | U.S. Treasury securities: | U.S. Treasury securities: | ||||||||||||||||||||
Due within 1 year | Due within 1 year | 6,634 | 6,515 | 1.8 | % | Due within 1 year | 8,102 | 7,982 | 1.9 | % | ||||||||||||
After 1 year through 5 years | After 1 year through 5 years | 15,649 | 14,907 | 1.9 | % | After 1 year through 5 years | 12,683 | 11,863 | 1.8 | % | ||||||||||||
After 5 years through 10 years | After 5 years through 10 years | 3,866 | 3,614 | 2.4 | % | After 5 years through 10 years | 3,864 | 3,445 | 2.4 | % | ||||||||||||
After 10 years | After 10 years | 1,560 | 1,217 | 2.3 | % | After 10 years | 1,559 | 1,033 | 2.3 | % | ||||||||||||
Total | Total | 27,709 | 26,253 | Total | 26,208 | 24,323 | ||||||||||||||||
U.S. agency securities: | U.S. agency securities: | U.S. agency securities: | ||||||||||||||||||||
After 1 year through 5 years | After 1 year through 5 years | 8 | 7 | 1.8 | % | After 1 year through 5 years | 7 | 6 | 1.8 | % | ||||||||||||
After 5 years through 10 years | After 5 years through 10 years | 351 | 326 | 2.1 | % | After 5 years through 10 years | 311 | 276 | 2.1 | % | ||||||||||||
After 10 years | After 10 years | 42,984 | 35,125 | 1.8 | % | After 10 years | 41,294 | 31,194 | 1.8 | % | ||||||||||||
Total | Total | 43,343 | 35,458 | Total | 41,612 | 31,476 | ||||||||||||||||
Agency CMBS: | Agency CMBS: | Agency CMBS: | ||||||||||||||||||||
Due within 1 year | Due within 1 year | 329 | 322 | 0.8 | % | Due within 1 year | 482 | 469 | 1.4 | % | ||||||||||||
After 1 year through 5 years | After 1 year through 5 years | 1,136 | 1,053 | 1.4 | % | After 1 year through 5 years | 928 | 828 | 1.2 | % | ||||||||||||
After 5 years through 10 years | After 5 years through 10 years | 174 | 150 | 1.4 | % | After 5 years through 10 years | 118 | 95 | 1.4 | % | ||||||||||||
After 10 years | After 10 years | 131 | 107 | 1.6 | % | After 10 years | 128 | 96 | 1.6 | % | ||||||||||||
Total | Total | 1,770 | 1,632 | Total | 1,656 | 1,488 | ||||||||||||||||
Non-agency CMBS: | Non-agency CMBS: | Non-agency CMBS: | ||||||||||||||||||||
Due within 1 year | Due within 1 year | 198 | 195 | 4.0 | % | Due within 1 year | 195 | 177 | 4.2 | % | ||||||||||||
After 1 year through 5 years | After 1 year through 5 years | 251 | 233 | 4.1 | % | After 1 year through 5 years | 353 | 315 | 4.4 | % | ||||||||||||
After 5 years through 10 years | After 5 years through 10 years | 706 | 617 | 3.8 | % | After 5 years through 10 years | 630 | 500 | 3.7 | % | ||||||||||||
After 10 years | After 10 years | 35 | 31 | 3.6 | % | After 10 years | 51 | 45 | 4.6 | % | ||||||||||||
Total | Total | 1,190 | 1,076 | Total | 1,229 | 1,037 | ||||||||||||||||
Total HTM securities | Total HTM securities | 74,012 | 64,419 | 1.9 | % | Total HTM securities | 70,705 | 58,324 | 1.9 | % | ||||||||||||
Total investment securities | Total investment securities | 162,750 | 148,351 | 1.9 | % | Total investment securities | 152,278 | 134,585 | 2.1 | % |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Gross realized gains | Gross realized gains | $ | 44 | $ | 126 | Gross realized gains | $ | 15 | $ | 13 | $ | 66 | $ | 163 | ||||||||||||||
Gross realized (losses) | Gross realized (losses) | (3) | (82) | Gross realized (losses) | (1) | (4) | (21) | (92) | ||||||||||||||||||||
Total1 | Total1 | $ | 41 | $ | 44 | Total1 | $ | 14 | $ | 9 | $ | 45 | $ | 71 |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||||||||
$ 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 | $ | 223,056 | $ | (101,171) | $ | 121,885 | $ | (118,330) | $ | 3,555 | Securities purchased under agreements to resell | $ | 244,528 | $ | (142,959) | $ | 101,569 | $ | (98,203) | $ | 3,366 | ||||||||||||
Securities borrowed | Securities borrowed | 157,967 | (11,751) | 146,216 | (142,775) | 3,441 | Securities borrowed | 133,184 | (12,268) | 120,916 | (116,818) | 4,098 | ||||||||||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | $ | 161,662 | $ | (101,171) | $ | 60,491 | $ | (56,242) | $ | 4,249 | Securities sold under agreements to repurchase | $ | 219,620 | $ | (142,959) | $ | 76,661 | $ | (70,871) | $ | 5,790 | ||||||||||||
Securities loaned | Securities loaned | 27,339 | (11,751) | 15,588 | (15,135) | 453 | Securities loaned | 25,332 | (12,268) | 13,064 | (13,049) | 15 | ||||||||||||||||||||||
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 | $ | 3,252 | Securities purchased under agreements to resell | $ | 2,160 | ||||||||||||||||||||||||||||
Securities borrowed | Securities borrowed | 620 | Securities borrowed | 380 | ||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | 3,368 | Securities sold under agreements to repurchase | 4,311 | ||||||||||||||||||||||||||||||
Securities loaned | Securities loaned | 215 | Securities loaned | 4 |
At December 31, 2022 | |||||||||||||||||
$ in millions | Gross Amounts | Amounts Offset | Balance Sheet Net Amounts | Amounts Not Offset1 | Net Amounts | ||||||||||||
Assets | |||||||||||||||||
Securities purchased under agreements to resell | $ | 240,355 | $ | (126,448) | $ | 113,907 | $ | (109,902) | $ | 4,005 | |||||||
Securities borrowed | 145,340 | (11,966) | 133,374 | (128,073) | 5,301 | ||||||||||||
Liabilities | |||||||||||||||||
Securities sold under agreements to repurchase | $ | 188,982 | $ | (126,448) | $ | 62,534 | $ | (57,395) | $ | 5,139 | |||||||
Securities loaned | 27,645 | (11,966) | 15,679 | (15,199) | 480 | ||||||||||||
Net amounts for which master netting agreements are not in place or may not be legally enforceable | |||||||||||||||||
Securities purchased under agreements to resell | $ | 1,696 | |||||||||||||||
Securities borrowed | 624 | ||||||||||||||||
Securities sold under agreements to repurchase | 3,861 | ||||||||||||||||
Securities loaned | 250 |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||||||||
$ 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 | $ | 63,922 | $ | 41,521 | $ | 17,262 | $ | 38,957 | $ | 161,662 | Securities sold under agreements to repurchase | $ | 93,944 | $ | 68,289 | $ | 23,622 | $ | 33,765 | $ | 219,620 | ||||||||||||
Securities loaned | Securities loaned | 14,786 | 1 | 987 | 11,565 | 27,339 | Securities loaned | 13,266 | — | 900 | 11,166 | 25,332 | ||||||||||||||||||||||
Total included in the offsetting disclosure | Total included in the offsetting disclosure | $ | 78,708 | $ | 41,522 | $ | 18,249 | $ | 50,522 | $ | 189,001 | Total included in the offsetting disclosure | $ | 107,210 | $ | 68,289 | $ | 24,522 | $ | 44,931 | $ | 244,952 | ||||||||||||
Trading liabilities— Obligation to return securities received as collateral | Trading liabilities— Obligation to return securities received as collateral | 25,112 | — | — | — | 25,112 | Trading liabilities— Obligation to return securities received as collateral | 16,548 | — | — | — | 16,548 | ||||||||||||||||||||||
Total | Total | $ | 103,820 | $ | 41,522 | $ | 18,249 | $ | 50,522 | $ | 214,113 | Total | $ | 123,758 | $ | 68,289 | $ | 24,522 | $ | 44,931 | $ | 261,500 |
57 |
Notes to Consolidated Financial Statements (Unaudited) |
At December 31, 2022 | |||||||||||||||||
$ in millions | Overnight and Open | Less than 30 Days | 30-90 Days | Over 90 Days | Total | ||||||||||||
Securities sold under agreements to repurchase | $ | 54,551 | $ | 77,359 | $ | 20,586 | $ | 36,486 | $ | 188,982 | |||||||
Securities loaned | 15,150 | 882 | 1,984 | 9,629 | 27,645 | ||||||||||||
Total included in the offsetting disclosure | $ | 69,701 | $ | 78,241 | $ | 22,570 | $ | 46,115 | $ | 216,627 | |||||||
Trading liabilities— Obligation to return securities received as collateral | 22,880 | — | — | — | 22,880 | ||||||||||||
Total | $ | 92,581 | $ | 78,241 | $ | 22,570 | $ | 46,115 | $ | 239,507 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
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 | $ | 46,714 | $ | 57,761 | U.S. Treasury and agency securities | $ | 83,594 | $ | 57,761 | ||||||
Other sovereign government obligations | Other sovereign government obligations | 78,048 | 98,839 | Other sovereign government obligations | 102,679 | 98,839 | ||||||||||
Corporate equities | Corporate equities | 20,250 | 19,340 | Corporate equities | 17,976 | 19,340 | ||||||||||
Other | Other | 16,650 | 13,042 | Other | 15,371 | 13,042 | ||||||||||
Total | Total | $ | 161,662 | $ | 188,982 | Total | $ | 219,620 | $ | 188,982 | ||||||
Securities loaned | Securities loaned | Securities loaned | ||||||||||||||
Other sovereign government obligations | Other sovereign government obligations | $ | 913 | $ | 862 | Other sovereign government obligations | $ | 714 | $ | 862 | ||||||
Corporate equities | Corporate equities | 25,312 | 26,289 | Corporate equities | 23,939 | 26,289 | ||||||||||
Other | Other | 1,114 | 494 | Other | 679 | 494 | ||||||||||
Total | Total | $ | 27,339 | $ | 27,645 | Total | $ | 25,332 | $ | 27,645 | ||||||
Total included in the offsetting disclosure | Total included in the offsetting disclosure | $ | 189,001 | $ | 216,627 | Total included in the offsetting disclosure | $ | 244,952 | $ | 216,627 | ||||||
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 | $ | 25,025 | $ | 22,833 | Corporate equities | $ | 16,523 | $ | 22,833 | ||||||
Other | Other | 87 | 47 | Other | 25 | 47 | ||||||||||
Total | Total | $ | 25,112 | $ | 22,880 | Total | $ | 16,548 | $ | 22,880 | ||||||
Total | Total | $ | 214,113 | $ | 239,507 | Total | $ | 261,500 | $ | 239,507 |
$ in millions | At March 31, 2023 | At December 31, 2022 | |||||||||
$ | 34,669 | $ | 34,524 | ||||||||
$ in millions | At September 30, 2023 | At December 31, 2022 | |||||||||
Trading assets | $ | 38,682 | $ | 34,524 | |||||||
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Collateral received with right to sell or repledge | Collateral received with right to sell or repledge | $ | 681,133 | $ | 637,941 | Collateral received with right to sell or repledge | $ | 656,290 | $ | 637,941 | ||||||
Collateral that was sold or repledged1 | Collateral that was sold or repledged1 | 525,199 | 486,820 | Collateral that was sold or repledged1 | 499,905 | 486,820 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Segregated securities1 | Segregated securities1 | $ | 28,959 | $ | 32,254 | Segregated securities1 | $ | 21,936 | $ | 32,254 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Margin and other lending | Margin and other lending | $ | 39,354 | $ | 38,524 | Margin and other lending | $ | 42,699 | $ | 38,524 |
58 |
Notes to Consolidated Financial Statements (Unaudited) |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||
$ in millions | $ in millions | HFI Loans | HFS Loans | Total Loans | $ in millions | HFI Loans | HFS Loans | Total Loans | ||||||||||||||
Corporate | Corporate | $ | 7,435 | $ | 11,150 | $ | 18,585 | Corporate | $ | 7,181 | $ | 11,086 | $ | 18,267 | ||||||||
Secured lending facilities | Secured lending facilities | 37,187 | 3,006 | 40,193 | Secured lending facilities | 39,119 | 2,861 | 41,980 | ||||||||||||||
Commercial real estate | Commercial real estate | 8,601 | 948 | 9,549 | Commercial real estate | 8,389 | 259 | 8,648 | ||||||||||||||
Residential real estate | Residential real estate | 55,400 | 25 | 55,425 | Residential real estate | 59,002 | 23 | 59,025 | ||||||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | 91,897 | 17 | 91,914 | Securities-based lending and Other loans | 90,208 | 1 | 90,209 | ||||||||||||||
Total loans | Total loans | 200,520 | 15,146 | 215,666 | Total loans | 203,899 | 14,230 | 218,129 | ||||||||||||||
ACL | ACL | (970) | (970) | ACL | (1,157) | (1,157) | ||||||||||||||||
Total loans, net | Total loans, net | $ | 199,550 | $ | 15,146 | $ | 214,696 | Total loans, net | $ | 202,742 | $ | 14,230 | $ | 216,972 | ||||||||
Loans to non-U.S. borrowers, net | Loans to non-U.S. borrowers, net | $ | 24,395 | Loans to non-U.S. borrowers, net | $ | 26,246 |
At December 31, 2022 | |||||||||||
$ in millions | HFI Loans | HFS Loans | Total Loans | ||||||||
Corporate | $ | 6,589 | $ | 10,634 | $ | 17,223 | |||||
Secured lending facilities | 35,606 | 3,176 | 38,782 | ||||||||
Commercial real estate | 8,515 | 926 | 9,441 | ||||||||
Residential real estate | 54,460 | 4 | 54,464 | ||||||||
Securities-based lending and Other loans | 94,666 | 48 | 94,714 | ||||||||
Total loans | 199,836 | 14,788 | 214,624 | ||||||||
ACL | (839) | (839) | |||||||||
Total loans, net | $ | 198,997 | $ | 14,788 | $ | 213,785 | |||||
Loans to non-U.S. borrowers, net | $ | 23,651 |
At March 31, 2023 | At December 31, 2022 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||
$ in millions | $ in millions | Fixed Rate | Floating or Adjustable Rate | Fixed Rate | Floating or Adjustable Rate | $ in millions | Fixed Rate | Floating or Adjustable Rate | Fixed Rate | Floating or Adjustable Rate | ||||||||||||||||||
Corporate | Corporate | $ | — | $ | 18,584 | $ | — | $ | 17,223 | Corporate | $ | — | $ | 18,267 | $ | — | $ | 17,223 | ||||||||||
Secured lending facilities | Secured lending facilities | — | 40,193 | — | 38,782 | Secured lending facilities | — | 41,980 | — | 38,782 | ||||||||||||||||||
Commercial real estate | Commercial real estate | 204 | 9,346 | 204 | 9,237 | Commercial real estate | 198 | 8,450 | 204 | 9,237 | ||||||||||||||||||
Residential real estate | Residential real estate | 25,515 | 29,909 | 24,903 | 29,561 | Residential real estate | 28,282 | 30,743 | 24,903 | 29,561 | ||||||||||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | 22,253 | 69,662 | 24,077 | 70,637 | Securities-based lending and Other loans | 22,525 | 67,684 | 24,077 | 70,637 | ||||||||||||||||||
Total loans, before ACL | Total loans, before ACL | $ | 47,972 | $ | 167,694 | $ | 49,184 | $ | 165,440 | Total loans, before ACL | $ | 51,005 | $ | 167,124 | $ | 49,184 | $ | 165,440 |
At March 31, 2023 | At December 31, 2022 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Corporate | Corporate | |||||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | IG | NIG | Total | IG | NIG | Total | $ in millions | IG | NIG | Total | IG | NIG | Total | ||||||||||||||||||||||||||
Revolving | Revolving | $ | 2,907 | $ | 4,004 | $ | 6,911 | $ | 2,554 | $ | 3,456 | $ | 6,010 | Revolving | $ | 2,349 | $ | 4,189 | $ | 6,538 | $ | 2,554 | $ | 3,456 | $ | 6,010 | ||||||||||||||
2023 | 2023 | — | 13 | 13 | 2023 | 134 | 20 | 154 | ||||||||||||||||||||||||||||||||
2022 | 2022 | — | 143 | 143 | 6 | 107 | 113 | 2022 | — | 166 | 166 | 6 | 107 | 113 | ||||||||||||||||||||||||||
2021 | 2021 | — | 137 | 137 | — | 139 | 139 | 2021 | 15 | 101 | 116 | — | 139 | 139 | ||||||||||||||||||||||||||
2020 | 2020 | — | 59 | 59 | — | 58 | 58 | 2020 | 33 | 25 | 58 | — | 58 | 58 | ||||||||||||||||||||||||||
2019 | 2019 | — | 153 | 153 | — | 154 | 154 | 2019 | — | 149 | 149 | — | 154 | 154 | ||||||||||||||||||||||||||
Prior | Prior | — | 19 | 19 | 115 | — | 115 | Prior | — | — | — | 115 | — | 115 | ||||||||||||||||||||||||||
Total | Total | $ | 2,907 | $ | 4,528 | $ | 7,435 | $ | 2,675 | $ | 3,914 | $ | 6,589 | Total | $ | 2,531 | $ | 4,650 | $ | 7,181 | $ | 2,675 | $ | 3,914 | $ | 6,589 |
At March 31, 2023 | At December 31, 2022 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Secured Lending Facilities | Secured Lending Facilities | |||||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | IG | NIG | Total | IG | NIG | Total | $ in millions | IG | NIG | Total | IG | NIG | Total | ||||||||||||||||||||||||||
Revolving | Revolving | $ | 9,338 | $ | 21,713 | $ | 31,051 | $ | 9,445 | $ | 21,243 | $ | 30,688 | Revolving | $ | 11,329 | $ | 19,873 | $ | 31,202 | $ | 9,445 | $ | 21,243 | $ | 30,688 | ||||||||||||||
2023 | 2023 | 956 | 255 | 1,211 | 2023 | 2,324 | 750 | 3,074 | ||||||||||||||||||||||||||||||||
2022 | 2022 | 1,090 | 1,489 | 2,579 | 1,135 | 1,336 | 2,471 | 2022 | 667 | 2,150 | 2,817 | 1,135 | 1,336 | 2,471 | ||||||||||||||||||||||||||
2021 | 2021 | 257 | 211 | 468 | 254 | 208 | 462 | 2021 | 254 | 151 | 405 | 254 | 208 | 462 | ||||||||||||||||||||||||||
2020 | 2020 | — | 88 | 88 | — | 98 | 98 | 2020 | — | 85 | 85 | — | 98 | 98 | ||||||||||||||||||||||||||
2019 | 2019 | 60 | 418 | 478 | 60 | 486 | 546 | 2019 | 60 | 345 | 405 | 60 | 486 | 546 | ||||||||||||||||||||||||||
Prior | Prior | 212 | 1,100 | 1,312 | 215 | 1,126 | 1,341 | Prior | 302 | 829 | 1,131 | 215 | 1,126 | 1,341 | ||||||||||||||||||||||||||
Total | Total | $ | 11,913 | $ | 25,274 | $ | 37,187 | $ | 11,109 | $ | 24,497 | $ | 35,606 | Total | $ | 14,936 | $ | 24,183 | $ | 39,119 | $ | 11,109 | $ | 24,497 | $ | 35,606 |
At March 31, 2023 | At December 31, 2022 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Commercial Real Estate | Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | IG | NIG | Total | IG | NIG | Total | $ in millions | IG | NIG | Total | IG | NIG | Total | ||||||||||||||||||||||||||
Revolving | Revolving | $ | — | $ | 175 | $ | 175 | $ | — | $ | 204 | $ | 204 | Revolving | $ | — | $ | 168 | $ | 168 | $ | — | $ | 204 | $ | 204 | ||||||||||||||
2023 | 2023 | — | 297 | 297 | 2023 | 10 | 805 | 815 | ||||||||||||||||||||||||||||||||
2022 | 2022 | 388 | 2,067 | 2,455 | 379 | 2,201 | 2,580 | 2022 | 382 | 1,791 | 2,173 | 379 | 2,201 | 2,580 | ||||||||||||||||||||||||||
2021 | 2021 | 310 | 1,554 | 1,864 | 239 | 1,609 | 1,848 | 2021 | 286 | 1,574 | 1,860 | 239 | 1,609 | 1,848 | ||||||||||||||||||||||||||
2020 | 2020 | — | 739 | 739 | — | 728 | 728 | 2020 | — | 739 | 739 | — | 728 | 728 | ||||||||||||||||||||||||||
2019 | 2019 | 559 | 1,218 | 1,777 | 659 | 1,152 | 1,811 | 2019 | 325 | 1,242 | 1,567 | 659 | 1,152 | 1,811 | ||||||||||||||||||||||||||
Prior | Prior | 185 | 1,109 | 1,294 | 211 | 1,133 | 1,344 | Prior | 85 | 982 | 1,067 | 211 | 1,133 | 1,344 | ||||||||||||||||||||||||||
Total | Total | $ | 1,442 | $ | 7,159 | $ | 8,601 | $ | 1,488 | $ | 7,027 | $ | 8,515 | Total | $ | 1,088 | $ | 7,301 | $ | 8,389 | $ | 1,488 | $ | 7,027 | $ | 8,515 |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Real Estate | Residential Real Estate | |||||||||||||||||||||||||||||||||||||||||||||||||||
by FICO Scores | by LTV Ratio | Total | by FICO Scores | by LTV Ratio | Total | |||||||||||||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | ≥ 740 | 680-739 | ≤ 679 | ≤ 80% | > 80% | $ in millions | ≥ 740 | 680-739 | ≤ 679 | ≤ 80% | > 80% | ||||||||||||||||||||||||||||||||||||||||
Revolving | Revolving | $ | 85 | $ | 30 | $ | 5 | $ | 120 | $ | — | $ | 120 | Revolving | $ | 98 | $ | 32 | $ | 8 | $ | 137 | $ | 1 | $ | 138 | ||||||||||||||||||||||||||
2023 | 2023 | 1,365 | 293 | 72 | 1,514 | 216 | 1,730 | 2023 | 5,735 | 1,180 | 178 | 6,304 | 789 | 7,093 | ||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 11,347 | 2,503 | 407 | 13,123 | 1,134 | 14,257 | 2022 | 11,039 | 2,445 | 390 | 12,771 | 1,103 | 13,874 | ||||||||||||||||||||||||||||||||||||||
2021 | 2021 | 11,486 | 2,467 | 254 | 13,240 | 967 | 14,207 | 2021 | 11,210 | 2,392 | 245 | 12,911 | 936 | 13,847 | ||||||||||||||||||||||||||||||||||||||
2020 | 2020 | 7,198 | 1,489 | 112 | 8,349 | 450 | 8,799 | 2020 | 7,006 | 1,443 | 105 | 8,118 | 436 | 8,554 | ||||||||||||||||||||||||||||||||||||||
2019 | 2019 | 4,151 | 929 | 137 | 4,899 | 318 | 5,217 | 2019 | 4,012 | 901 | 132 | 4,739 | 306 | 5,045 | ||||||||||||||||||||||||||||||||||||||
Prior | Prior | 8,280 | 2,448 | 342 | 10,200 | 870 | 11,070 | Prior | 7,845 | 2,292 | 314 | 9,632 | 819 | 10,451 | ||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 43,912 | $ | 10,159 | $ | 1,329 | $ | 51,445 | $ | 3,955 | $ | 55,400 | Total | $ | 46,945 | $ | 10,685 | $ | 1,372 | $ | 54,612 | $ | 4,390 | $ | 59,002 |
At December 31, 2022 | ||||||||||||||||||||||||||
Residential Real Estate | ||||||||||||||||||||||||||
by FICO Scores | by LTV Ratio | Total | ||||||||||||||||||||||||
$ in millions | ≥ 740 | 680-739 | ≤ 679 | ≤ 80% | > 80% | |||||||||||||||||||||
Revolving | $ | 90 | $ | 29 | $ | 5 | $ | 124 | $ | — | $ | 124 | ||||||||||||||
2022 | 11,481 | 2,533 | 411 | 13,276 | 1,149 | 14,425 | ||||||||||||||||||||
2021 | 11,604 | 2,492 | 257 | 13,378 | 975 | 14,353 | ||||||||||||||||||||
2020 | 7,292 | 1,501 | 115 | 8,452 | 456 | 8,908 | ||||||||||||||||||||
2019 | 4,208 | 946 | 137 | 4,968 | 323 | 5,291 | ||||||||||||||||||||
2018 | 1,635 | 447 | 52 | 1,965 | 169 | 2,134 | ||||||||||||||||||||
Prior | 6,853 | 2,072 | 300 | 8,492 | 733 | 9,225 | ||||||||||||||||||||
Total | $ | 43,163 | $ | 10,020 | $ | 1,277 | $ | 50,655 | $ | 3,805 | $ | 54,460 |
59 |
Notes to Consolidated Financial Statements (Unaudited) |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||
Securities-based Lending1 | Other2 | Securities-based Lending1 | Other2 | |||||||||||||||||||||||||
$ in millions | $ in millions | IG | NIG | Total | $ in millions | IG | NIG | Total | ||||||||||||||||||||
Revolving | Revolving | $ | 73,763 | $ | 5,988 | $ | 1,089 | $ | 80,840 | Revolving | $ | 71,389 | $ | 6,096 | $ | 1,220 | $ | 78,705 | ||||||||||
2023 | 2023 | 468 | 138 | 148 | 754 | 2023 | 1,369 | 543 | 238 | 2,150 | ||||||||||||||||||
2022 | 2022 | 1,514 | 1,115 | 729 | 3,358 | 2022 | 1,474 | 820 | 792 | 3,086 | ||||||||||||||||||
2021 | 2021 | 701 | 481 | 295 | 1,477 | 2021 | 375 | 417 | 341 | 1,133 | ||||||||||||||||||
2020 | 2020 | — | 579 | 376 | 955 | 2020 | — | 464 | 425 | 889 | ||||||||||||||||||
2019 | 2019 | 16 | 970 | 545 | 1,531 | 2019 | 14 | 903 | 522 | 1,439 | ||||||||||||||||||
Prior | Prior | 202 | 1,706 | 1,074 | 2,982 | Prior | 202 | 1,466 | 1,138 | 2,806 | ||||||||||||||||||
Total | Total | $ | 76,664 | $ | 10,977 | $ | 4,256 | $ | 91,897 | Total | $ | 74,823 | $ | 10,709 | $ | 4,676 | $ | 90,208 |
December 31, 2022 | ||||||||||||||
Securities-based Lending1 | Other2 | |||||||||||||
$ in millions | IG | NIG | Total | |||||||||||
Revolving | $ | 77,115 | $ | 5,760 | $ | 1,480 | $ | 84,355 | ||||||
2022 | 1,425 | 1,572 | 269 | 3,266 | ||||||||||
2021 | 725 | 525 | 223 | 1,473 | ||||||||||
2020 | — | 580 | 418 | 998 | ||||||||||
2019 | 16 | 913 | 644 | 1,573 | ||||||||||
2018 | 202 | 268 | 304 | 774 | ||||||||||
Prior | — | 1,581 | 646 | 2,227 | ||||||||||
Total | $ | 79,483 | $ | 11,199 | $ | 3,984 | $ | 94,666 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Corporate | Corporate | $ | 46 | $ | 112 | Corporate | $ | 42 | $ | 112 | ||||||
Secured lending facilities | Secured lending facilities | 80 | 85 | Secured lending facilities | — | 85 | ||||||||||
Commercial real estate | Commercial real estate | 21 | — | |||||||||||||
Residential real estate | Residential real estate | 126 | 158 | Residential real estate | 153 | 158 | ||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | 19 | 1 | Securities-based lending and Other loans | — | 1 | ||||||||||
Total | Total | $ | 271 | $ | 356 | Total | $ | 216 | $ | 356 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Corporate | Corporate | $ | 177 | $ | 71 | Corporate | $ | 115 | $ | 71 | ||||||
Secured lending facilities | Secured lending facilities | 89 | 94 | Secured lending facilities | 92 | 94 | ||||||||||
Commercial real estate | Commercial real estate | 353 | 209 | Commercial real estate | 153 | 209 | ||||||||||
Residential real estate | Residential real estate | 125 | 118 | Residential real estate | 101 | 118 | ||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | 66 | 10 | Securities-based lending and Other loans | 120 | 10 | ||||||||||
Total1 | $ | 810 | $ | 502 | ||||||||||||
Total | Total | $ | 581 | $ | 502 | |||||||||||
Nonaccrual loans without an ACL | Nonaccrual loans without an ACL | $ | 140 | $ | 117 | Nonaccrual loans without an ACL | $ | 133 | $ | 117 |
Modified during the three months ended September 30, 20231 | Modified during the three months ended September 30, 20231 | ||||||||||||||||||
At September 30, 2023 | |||||||||||||||||||
$ in millions | $ in millions | Amortized Cost | % of Total Loans2 | ||||||||||||||||
Term Extension | |||||||||||||||||||
Corporate | Corporate | $ | 82 | 1.1 | % | ||||||||||||||
Commercial real estate | Commercial real estate | 198 | 2.4 | % | |||||||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | 105 | 0.1 | % | |||||||||||||||
Total | Total | $ | 385 | ||||||||||||||||
Modified during the nine months ended September 30, 20231 | Modified during the nine months ended September 30, 20231 | ||||||||||||||||||
At March 31, 20232 | At September 30, 2023 | ||||||||||||||||||
$ in millions | $ in millions | Amortized Cost | % of Total Loans3 | $ in millions | Amortized Cost | % of Total Loans2 | |||||||||||||
Term Extension | Term Extension | ||||||||||||||||||
Corporate | Corporate | $ | 17 | 0.2 | % | Corporate | $ | 114 | 1.6 | % | |||||||||
Commercial real estate | Commercial real estate | 62 | 0.7 | % | Commercial real estate | 219 | 2.6 | % | |||||||||||
Residential real estate | Residential real estate | 1 | — | % | Residential real estate | 1 | — | % | |||||||||||
Securities-based lending and Other loans | Securities-based lending and Other loans | 129 | 0.1 | % | |||||||||||||||
Total | Total | $ | 80 | Total | $ | 463 | |||||||||||||
Other-than-insignificant Payment Delay | |||||||||||||||||||
Commercial real estate | $ | 67 | 0.8 | % | |||||||||||||||
Combination - Multiple Modifications3 | |||||||||||||||||||
Commercial real estate | Commercial real estate | $ | 40 | 0.5 | % |
September 2023 Form 10-Q | 60 |
Notes to Consolidated Financial Statements (Unaudited) |
Modified during the three months ended September 30, 20231 | ||||||||
At | ||||||||
Term Extension2 | ||||||||
Corporate | Added | |||||||
Commercial real estate | Added | |||||||
Securities-based lending and Other loans | Added 4 months to the life of the modified loan(s) | |||||||
Modified during the nine months ended September 30, 20231 | ||||||||
At September 30, 2023 | ||||||||
Term Extension2 | ||||||||
Corporate | Added 1 year, 9 months to the life of the modified loan(s) | |||||||
Commercial real estate | Added 3 months to the life of the modified loan(s) | |||||||
Residential real estate | Added 4 months to the life of the modified | |||||||
Securities-based lending and Other loans | Added 8 months to the life of the modified loan(s) | |||||||
Commercial real estate | ||||||||
At September 30, 2023 | ||||||||||||||
$ in millions | 30-89 Days Past Due | 90+ days Past Due | Total | |||||||||||
Commercial real estate | $ | 21 | $ | — | $ | 21 | ||||||||
Residential real estate | — | 1 | 1 | |||||||||||
Total | $ | 21 | $ | 1 | $ | 22 |
$ in millions | At December 31, 2022 | ||||||||||
Loans, before ACL | $ | 29 | |||||||||
— | |||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||
$ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | ||||||||||||||
Revolving | $ | (1) | $ | — | $ | — | $ | — | $ | — | $ | (1) | ||||||||
2019 | — | — | (29) | — | (1) | (30) | ||||||||||||||
Prior | — | — | (40) | — | — | (40) | ||||||||||||||
Total | $ | (1) | $ | — | $ | (69) | $ | — | $ | (1) | $ | (71) |
Three Months Ended September 30, 2023 | ||||||||||||||||||||
$ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | ||||||||||||||
Revolving | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
2020 | — | — | — | — | (1) | (1) | ||||||||||||||
2019 | — | — | (39) | — | — | (39) | ||||||||||||||
Total | $ | — | $ | — | $ | (39) | $ | — | $ | (1) | $ | (40) |
Nine Months Ended September 30, 2023 | ||||||||||||||||||||
$ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | ||||||||||||||
Revolving | $ | (30) | $ | — | $ | — | $ | — | $ | — | $ | (30) | ||||||||
2020 | — | — | — | — | (2) | (2) | ||||||||||||||
2019 | — | — | (68) | — | (1) | (69) | ||||||||||||||
Prior | — | — | (40) | — | — | (40) | ||||||||||||||
Total | $ | (30) | $ | — | $ | (108) | $ | — | $ | (3) | $ | (141) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||
Loans | $ | 123 | $ | 6 | $ | 462 | $ | 137 | ||||||
Lending commitments | 11 | 29 | 67 | 56 |
$ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | ||||||||||||||
December 31, 2022 | $ | 235 | $ | 153 | $ | 275 | $ | 87 | $ | 89 | $ | 839 | ||||||||
Gross charge-offs | (30) | — | (108) | — | (3) | (141) | ||||||||||||||
Recoveries | — | — | — | 1 | — | 1 | ||||||||||||||
Net (charge-offs) recoveries | (30) | — | (108) | 1 | (3) | (140) | ||||||||||||||
Provision (release) | 44 | 2 | 261 | 22 | 133 | 462 | ||||||||||||||
Other | (1) | (1) | (2) | — | — | (4) | ||||||||||||||
September 30, 2023 | $ | 248 | $ | 154 | $ | 426 | $ | 110 | $ | 219 | $ | 1,157 | ||||||||
Percent of loans to total loans1 | 4 | % | 19 | % | 4 | % | 29 | % | 44 | % | 100 | % |
$ 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 recoveries (charge-offs) | 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 | % | 17 | % | 4 | % | 26 | % | 50 | % | 100 | % |
Notes to Consolidated Financial Statements (Unaudited) |
$ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | ||||||||||||||
December 31, 2022 | $ | 235 | $ | 153 | $ | 275 | $ | 87 | $ | 89 | $ | 839 | ||||||||
Gross charge-offs | (1) | — | (69) | — | (1) | (71) | ||||||||||||||
Provision (release) | 31 | — | 129 | 26 | 15 | 201 | ||||||||||||||
Other | — | (1) | — | — | 2 | 1 | ||||||||||||||
March 31, 2023 | $ | 265 | $ | 152 | $ | 335 | $ | 113 | $ | 105 | $ | 970 | ||||||||
Percent of loans to total loans1 | 4 | % | 18 | % | 4 | % | 28 | % | 46 | % | 100 | % |
$ 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) | — | (1) | (11) | ||||||||||||||
Provision (release) | 6 | 12 | 6 | 13 | 2 | 39 | ||||||||||||||
Other | (1) | — | (2) | — | — | (3) | ||||||||||||||
March 31, 2022 | $ | 170 | $ | 172 | $ | 203 | $ | 73 | $ | 61 | $ | 679 | ||||||||
Percent of loans to total loans1 | 3 | % | 16 | % | 5 | % | 26 | % | 50 | % | 100 | % |
$ in millions | $ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | $ in millions | Corporate | Secured Lending Facilities | CRE | Residential Real Estate | SBL and Other | Total | ||||||||||||||||||||||||||
December 31, 2022 | December 31, 2022 | $ | 411 | $ | 51 | $ | 15 | $ | 4 | $ | 23 | $ | 504 | December 31, 2022 | $ | 411 | $ | 51 | $ | 15 | $ | 4 | $ | 23 | $ | 504 | ||||||||||||||
Provision (release) | Provision (release) | 22 | — | 7 | 1 | 3 | 33 | Provision (release) | 29 | 24 | 12 | — | 2 | 67 | ||||||||||||||||||||||||||
Other | Other | 2 | — | — | — | — | 2 | Other | (1) | — | (1) | — | — | (2) | ||||||||||||||||||||||||||
March 31, 2023 | $ | 435 | $ | 51 | $ | 22 | $ | 5 | $ | 26 | $ | 539 | ||||||||||||||||||||||||||||
September 30, 2023 | September 30, 2023 | $ | 439 | $ | 75 | $ | 26 | $ | 4 | $ | 25 | $ | 569 |
$ 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) | 20 | 8 | (7) | — | (3) | 18 | ||||||||||||||
Other | (3) | — | — | — | — | (3) | ||||||||||||||
March 31, 2022 | $ | 373 | $ | 49 | $ | 13 | $ | 1 | $ | 23 | $ | 459 |
$ 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 |
At March 31, 2023 | At December 31, 2022 | At September 30, 2023 | At December 31, 2022 | |||||||||||||
ACL for loans to total HFI loans | ACL for loans to total HFI loans | 0.5 | % | 0.4 | % | ACL for loans to total HFI loans | 0.6 | % | 0.4 | % | ||||||
Nonaccrual HFI loans to total HFI loans1 | 0.4 | % | 0.3 | % | ||||||||||||
Nonaccrual HFI loans to total HFI loans | Nonaccrual HFI loans to total HFI loans | 0.3 | % | 0.3 | % | |||||||||||
ACL for loans to nonaccrual HFI loans | ACL for loans to nonaccrual HFI loans | 119.8 | % | 167.1 | % | ACL for loans to nonaccrual HFI loans | 199.1 | % | 167.1 | % |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Currently employed by the Firm1 | Currently employed by the Firm1 | $ | 4,065 | $ | 4,023 | Currently employed by the Firm1 | $ | 4,262 | $ | 4,023 | ||||||
No longer employed by the Firm2 | No longer employed by the Firm2 | 105 | 97 | No longer employed by the Firm2 | 98 | 97 | ||||||||||
Employee loans | Employee loans | $ | 4,170 | $ | 4,120 | Employee loans | $ | 4,360 | $ | 4,120 | ||||||
ACL | ACL | (138) | (139) | ACL | (130) | (139) | ||||||||||
Employee loans, net of ACL | Employee loans, net of ACL | $ | 4,032 | $ | 3,981 | Employee loans, net of ACL | $ | 4,230 | $ | 3,981 | ||||||
Remaining repayment term, weighted average in years | Remaining repayment term, weighted average in years | 5.8 | 5.8 | Remaining repayment term, weighted average in years | 5.8 | 5.8 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Investments | Investments | $ | 1,962 | $ | 1,927 | Investments | $ | 1,775 | $ | 1,927 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Income (loss) | Income (loss) | $ | 25 | $ | 6 | Income (loss) | $ | 19 | $ | 21 | $ | 105 | $ | 44 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Income (loss) from investment in MUMSS | Income (loss) from investment in MUMSS | $ | 29 | $ | 4 | Income (loss) from investment in MUMSS | $ | 10 | $ | 17 | $ | 102 | $ | 35 |
$ in millions | At September 30, 2023 | At December 31, 2022 | ||||||
Savings and demand deposits | $ | 280,008 | $ | 319,948 | ||||
Time deposits | 65,450 | 36,698 | ||||||
Total | $ | 345,458 | $ | 356,646 | ||||
Deposits subject to FDIC insurance | $ | 272,015 | $ | 260,420 | ||||
Deposits not subject to FDIC insurance | $ | 73,443 | $ | 96,226 | ||||
$ in millions | At September 30, 2023 | ||||
2023 | $ | 13,058 | |||
2024 | 29,378 | ||||
2025 | 11,302 | ||||
2026 | 4,716 | ||||
2027 | 3,372 | ||||
Thereafter | 3,624 | ||||
Total | $ | 65,450 |
Notes to Consolidated Financial Statements (Unaudited) |
$ in millions | At March 31, 2023 | At December 31, 2022 | ||||||
Savings and demand deposits | $ | 298,330 | $ | 319,948 | ||||
Time deposits | 49,193 | 36,698 | ||||||
Total | $ | 347,523 | $ | 356,646 | ||||
Deposits subject to FDIC insurance | $ | 263,420 | $ | 260,420 | ||||
Deposits not subject to FDIC insurance | $ | 84,103 | $ | 96,226 | ||||
$ in millions | At March 31, 2023 | ||||
2023 | $ | 22,647 | |||
2024 | 15,815 | ||||
2025 | 5,204 | ||||
2026 | 1,982 | ||||
2027 | 1,847 | ||||
Thereafter | 1,698 | ||||
Total | $ | 49,193 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Original maturities of one year or less | Original maturities of one year or less | $ | 4,587 | $ | 4,191 | Original maturities of one year or less | $ | 4,350 | $ | 4,191 | ||||||
Original maturities greater than one year | Original maturities greater than one year | Original maturities greater than one year | ||||||||||||||
Senior | Senior | $ | 231,205 | $ | 221,667 | Senior | $ | 231,047 | $ | 221,667 | ||||||
Subordinated | Subordinated | 14,390 | 12,200 | Subordinated | 11,796 | 12,200 | ||||||||||
Total greater than one year | Total greater than one year | $ | 242,843 | $ | 233,867 | |||||||||||
Total | Total | $ | 245,595 | $ | 233,867 | Total | $ | 247,193 | $ | 238,058 | ||||||
Total borrowings | $ | 250,182 | $ | 238,058 | ||||||||||||
Weighted average stated maturity, in years1 | Weighted average stated maturity, in years1 | 6.7 | 6.7 | Weighted average stated maturity, in years1 | 6.5 | 6.7 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Original maturities: | Original maturities: | Original maturities: | ||||||||||||||
One year or less | One year or less | $ | 980 | $ | 944 | One year or less | $ | 2,391 | $ | 944 | ||||||
Greater than one year | Greater than one year | 7,690 | 7,214 | Greater than one year | 7,277 | 7,214 | ||||||||||
Total | Total | $ | 8,670 | $ | 8,158 | Total | $ | 9,668 | $ | 8,158 | ||||||
Transfers of assets accounted for as secured financings | Transfers of assets accounted for as secured financings | $ | 1,138 | $ | 1,119 | Transfers of assets accounted for as secured financings | $ | 3,092 | $ | 1,119 |
Years to Maturity at March 31, 2023 | Years to Maturity at September 30, 2023 | |||||||||||||||||||||||||||||||||
$ 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 | $ | 16,630 | $ | 26,698 | $ | 57,883 | $ | 1,819 | $ | 103,030 | Corporate | $ | 16,247 | $ | 36,269 | $ | 53,156 | $ | 2,356 | $ | 108,028 | ||||||||||||
Secured lending facilities | Secured lending facilities | 7,379 | 5,943 | 2,884 | 1,027 | 17,233 | Secured lending facilities | 7,773 | 5,032 | 3,662 | 2,140 | 18,607 | ||||||||||||||||||||||
Commercial and Residential real estate | Commercial and Residential real estate | 171 | 201 | 19 | 336 | 727 | Commercial and Residential real estate | 309 | 112 | 14 | 352 | 787 | ||||||||||||||||||||||
Securities-based lending and Other | Securities-based lending and Other | 13,175 | 4,995 | 414 | 522 | 19,106 | Securities-based lending and Other | 16,229 | 3,360 | 395 | 394 | 20,378 | ||||||||||||||||||||||
Forward-starting secured financing receivables1 | Forward-starting secured financing receivables1 | 70,011 | — | — | — | 70,011 | Forward-starting secured financing receivables1 | 73,474 | — | — | — | 73,474 | ||||||||||||||||||||||
Central counterparty | Central counterparty | 300 | — | — | 7,255 | 7,555 | Central counterparty | 300 | — | — | 14,966 | 15,266 | ||||||||||||||||||||||
Underwriting | Underwriting | 300 | — | — | — | 300 | Underwriting | 645 | — | — | — | 645 | ||||||||||||||||||||||
Investment activities | Investment activities | 1,313 | 290 | 118 | 356 | 2,077 | Investment activities | 1,777 | 314 | 110 | 284 | 2,485 | ||||||||||||||||||||||
Letters of credit and other financial guarantees | Letters of credit and other financial guarantees | 107 | 35 | — | 8 | 150 | Letters of credit and other financial guarantees | 145 | — | — | 6 | 151 | ||||||||||||||||||||||
Total | Total | $ | 109,386 | $ | 38,162 | $ | 61,318 | $ | 11,323 | $ | 220,189 | Total | $ | 116,899 | $ | 45,087 | $ | 57,337 | $ | 20,498 | $ | 239,821 | ||||||||||||
Lending commitments participated to third parties | Lending commitments participated to third parties | $ | 7,509 | Lending commitments participated to third parties | $ | 7,408 |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||||||||||||||
Maximum Potential Payout/Notional of Obligations by Years to Maturity | Carrying Amount Asset (Liability) | Maximum Potential Payout/Notional of Obligations by Years to Maturity | Carrying Amount Asset (Liability) | |||||||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | $ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | ||||||||||||||||||||||||||||||
Non-credit derivatives1 | Non-credit derivatives1 | $ | 1,418,449 | $ | 1,132,093 | $ | 347,086 | $ | 692,818 | $ | (60,437) | Non-credit derivatives1 | $ | 1,303,613 | $ | 1,337,393 | $ | 295,171 | $ | 713,579 | $ | (67,659) | ||||||||||||||||||
Standby letters of credit and other financial guarantees issued2 | Standby letters of credit and other financial guarantees issued2 | 1,634 | 635 | 1,389 | 2,676 | (6) | Standby letters of credit and other financial guarantees issued2 | 1,545 | 1,054 | 1,100 | 2,801 | (15) | ||||||||||||||||||||||||||||
Market value guarantees | Market value guarantees | 2 | — | — | — | — | Market value guarantees | 1 | — | — | — | — | ||||||||||||||||||||||||||||
Liquidity facilities | Liquidity facilities | 2,593 | — | — | — | (2) | Liquidity facilities | 2,035 | — | — | — | (9) | ||||||||||||||||||||||||||||
Whole loan sales guarantees | Whole loan sales guarantees | — | 52 | 34 | 23,079 | — | Whole loan sales guarantees | — | 69 | 17 | 23,076 | — | ||||||||||||||||||||||||||||
Securitization representations and warranties3 | Securitization representations and warranties3 | — | — | — | 78,695 | (3) | Securitization representations and warranties3 | — | — | — | 80,081 | (3) | ||||||||||||||||||||||||||||
General partner guarantees | General partner guarantees | 364 | 30 | 143 | 37 | (87) | General partner guarantees | 381 | 32 | 130 | 33 | (87) | ||||||||||||||||||||||||||||
Client clearing guarantees | Client clearing guarantees | 45 | — | — | — | — | Client clearing guarantees | 77 | — | — | — | — |
Notes to Consolidated Financial Statements (Unaudited) |
Three Months Ended March 31, | ||||||||||||||
$ in millions | 2023 | 2022 | ||||||||||||
Legal expenses | $ | 151 | $ | 84 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
$ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||
Legal expenses | $ | 18 | $ | 41 | $ | 214 | $ | 387 |
Notes to Consolidated Financial Statements (Unaudited) |
65 | September 2023 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
At March 31, 2023 | At December 31, 2022 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||
$ in millions | $ in millions | VIE Assets | VIE Liabilities | VIE Assets | VIE Liabilities | $ in millions | VIE Assets | VIE Liabilities | VIE Assets | VIE Liabilities | ||||||||||||||||||
MABS1 | MABS1 | $ | 944 | $ | 659 | $ | 1,153 | $ | 520 | MABS1 | $ | 526 | $ | 156 | $ | 1,153 | $ | 520 | ||||||||||
Investment vehicles2 | Investment vehicles2 | 634 | 272 | 638 | 272 | Investment vehicles2 | 856 | 508 | 638 | 272 | ||||||||||||||||||
MTOB | MTOB | 664 | 614 | 371 | 322 | MTOB | 406 | 402 | 371 | 322 | ||||||||||||||||||
Other | Other | 572 | 199 | 519 | 199 | Other | 508 | 202 | 519 | 199 | ||||||||||||||||||
Total | Total | $ | 2,814 | $ | 1,744 | $ | 2,681 | $ | 1,313 | Total | $ | 2,296 | $ | 1,268 | $ | 2,681 | $ | 1,313 |
(Unaudited) |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Assets | Assets | Assets | ||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 141 | $ | 142 | Cash and cash equivalents | $ | 220 | $ | 142 | ||||||
Trading assets at fair value | Trading assets at fair value | 1,885 | 2,066 | Trading assets at fair value | 1,542 | 2,066 | ||||||||||
Investment securities | Investment securities | 577 | 255 | Investment securities | 319 | 255 | ||||||||||
Securities purchased under agreements to resell | Securities purchased under agreements to resell | 200 | 200 | Securities purchased under agreements to resell | 200 | 200 | ||||||||||
Customer and other receivables | Customer and other receivables | 9 | 16 | Customer and other receivables | 13 | 16 | ||||||||||
Other assets | Other assets | 2 | 2 | Other assets | 2 | 2 | ||||||||||
Total | Total | $ | 2,814 | $ | 2,681 | Total | $ | 2,296 | $ | 2,681 | ||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||
Other secured financings | Other secured financings | $ | 1,618 | $ | 1,185 | Other secured financings | $ | 1,133 | $ | 1,185 | ||||||
Other liabilities and accrued expenses | Other liabilities and accrued expenses | 122 | 124 | Other liabilities and accrued expenses | 131 | 124 | ||||||||||
Borrowings | Borrowings | 4 | 4 | Borrowings | 4 | 4 | ||||||||||
Total | Total | $ | 1,744 | $ | 1,313 | Total | $ | 1,268 | $ | 1,313 | ||||||
Noncontrolling interests | Noncontrolling interests | $ | 75 | $ | 71 | Noncontrolling interests | $ | 77 | $ | 71 |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | MABS1 | CDO | MTOB | OSF | Other2 | $ in millions | MABS1 | CDO | MTOB | OSF | Other2 | ||||||||||||||||||||||
VIE assets (UPB) | VIE assets (UPB) | $ | 132,049 | $ | 926 | $ | 3,688 | $ | 2,619 | $ | 52,661 | VIE assets (UPB) | $ | 139,804 | $ | 2,216 | $ | 2,931 | $ | 2,751 | $ | 47,136 | ||||||||||||
Maximum exposure to loss3 | Maximum exposure to loss3 | Maximum exposure to loss3 | ||||||||||||||||||||||||||||||||
Debt and equity interests | Debt and equity interests | $ | 16,917 | $ | 74 | $ | — | $ | 1,749 | $ | 11,751 | Debt and equity interests | $ | 20,141 | $ | 81 | $ | — | $ | 1,857 | $ | 8,692 | ||||||||||||
Derivative and other contracts | Derivative and other contracts | — | — | 2,593 | — | 5,615 | Derivative and other contracts | — | — | 2,035 | — | 4,471 | ||||||||||||||||||||||
Commitments, guarantees and other | Commitments, guarantees and other | 1,290 | — | — | — | 892 | Commitments, guarantees and other | 2,519 | — | — | — | 74 | ||||||||||||||||||||||
Total | Total | $ | 18,207 | $ | 74 | $ | 2,593 | $ | 1,749 | $ | 18,258 | Total | $ | 22,660 | $ | 81 | $ | 2,035 | $ | 1,857 | $ | 13,237 | ||||||||||||
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 | $ | 16,917 | $ | 74 | $ | — | $ | 1,558 | $ | 11,751 | Debt and equity interests | $ | 20,141 | $ | 81 | $ | — | $ | 1,640 | $ | 8,692 | ||||||||||||
Derivative and other contracts | Derivative and other contracts | — | — | 3 | — | 1,731 | Derivative and other contracts | — | — | 2 | — | 1,641 | ||||||||||||||||||||||
Total | Total | $ | 16,917 | $ | 74 | $ | 3 | $ | 1,558 | $ | 13,482 | Total | $ | 20,141 | $ | 81 | $ | 2 | $ | 1,640 | $ | 10,333 | ||||||||||||
Additional VIE assets owned4 | Additional VIE assets owned4 | $ | 14,419 | Additional VIE assets owned4 | $ | 15,204 | ||||||||||||||||||||||||||||
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 | $ | — | $ | — | $ | 5 | $ | — | $ | 306 | Derivative and other contracts | $ | — | $ | — | $ | 11 | $ | — | $ | 371 |
At December 31, 2022 | |||||||||||||||||
$ in millions | MABS1 | CDO | MTOB | OSF | Other2 | ||||||||||||
VIE assets (UPB) | $ | 123,601 | $ | 3,162 | $ | 4,632 | $ | 2,403 | $ | 50,178 | |||||||
Maximum exposure to loss3 | |||||||||||||||||
Debt and equity interests | $ | 13,104 | $ | 274 | $ | — | $ | 1,694 | $ | 11,596 | |||||||
Derivative and other contracts | — | — | 3,200 | — | 5,211 | ||||||||||||
Commitments, guarantees and other | 674 | — | — | — | 1,410 | ||||||||||||
Total | $ | 13,778 | $ | 274 | $ | 3,200 | $ | 1,694 | $ | 18,217 | |||||||
Carrying value of variable interests–Assets | |||||||||||||||||
Debt and equity interests | $ | 13,104 | $ | 274 | $ | — | $ | 1,577 | $ | 11,596 | |||||||
Derivative and other contracts | — | — | 3 | — | 1,564 | ||||||||||||
Total | $ | 13,104 | $ | 274 | $ | 3 | $ | 1,577 | $ | 13,160 | |||||||
Additional VIE assets owned4 | $ | 13,708 | |||||||||||||||
Carrying value of variable interests—Liabilities | |||||||||||||||||
Derivative and other contracts | $ | — | $ | — | $ | 3 | $ | — | $ | 281 |
September 2023 Form 10-Q | 66 |
Notes to Consolidated Financial Statements (Unaudited) |
At March 31, 2023 | At December 31, 2022 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||
$ 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 | $ | 16,999 | $ | 2,441 | $ | 20,428 | $ | 2,570 | Residential mortgages | $ | 15,852 | $ | 3,231 | $ | 20,428 | $ | 2,570 | ||||||||||
Commercial mortgages | Commercial mortgages | 69,821 | 4,594 | 67,540 | 4,236 | Commercial mortgages | 75,060 | 8,112 | 67,540 | 4,236 | ||||||||||||||||||
U.S. agency collateralized mortgage obligations | U.S. agency collateralized mortgage obligations | 39,959 | 5,959 | 32,567 | 4,729 | U.S. agency collateralized mortgage obligations | 40,147 | 6,296 | 32,567 | 4,729 | ||||||||||||||||||
Other consumer or commercial loans | Other consumer or commercial loans | 5,270 | 3,923 | 3,066 | 1,569 | Other consumer or commercial loans | 8,745 | 2,502 | 3,066 | 1,569 | ||||||||||||||||||
Total | Total | $ | 132,049 | $ | 16,917 | $ | 123,601 | $ | 13,104 | Total | $ | 139,804 | $ | 20,141 | $ | 123,601 | $ | 13,104 |
(Unaudited) |
At March 31, 2023 | At September 30, 2023 | |||||||||||||||||||||||||||
$ 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)2,3 | SPE assets (UPB)2,3 | $ | 4,095 | $ | 72,848 | $ | 7,061 | $ | 10,689 | SPE assets (UPB)2,3 | $ | 3,868 | $ | 73,138 | $ | 10,274 | $ | 11,388 | ||||||||||
Retained interests | Retained interests | Retained interests | ||||||||||||||||||||||||||
Investment grade | Investment grade | $ | 138 | $ | 888 | $ | 424 | $ | — | Investment grade | $ | 148 | $ | 658 | $ | 360 | $ | — | ||||||||||
Non-investment grade | Non-investment grade | 81 | 512 | — | 42 | Non-investment grade | 64 | 769 | — | 47 | ||||||||||||||||||
Total | Total | $ | 219 | $ | 1,400 | $ | 424 | $ | 42 | Total | $ | 212 | $ | 1,427 | $ | 360 | $ | 47 | ||||||||||
Interests purchased in the secondary market3 | Interests purchased in the secondary market3 | Interests purchased in the secondary market3 | ||||||||||||||||||||||||||
Investment grade | Investment grade | $ | 17 | $ | 49 | $ | 10 | $ | — | Investment grade | $ | 12 | $ | 24 | $ | 11 | $ | — | ||||||||||
Non-investment grade | Non-investment grade | 6 | 16 | — | — | Non-investment grade | — | 16 | — | — | ||||||||||||||||||
Total | Total | $ | 23 | $ | 65 | $ | 10 | $ | — | Total | $ | 12 | $ | 40 | $ | 11 | $ | — | ||||||||||
Derivative assets | Derivative assets | $ | — | $ | — | $ | — | $ | 1,151 | Derivative assets | $ | — | $ | — | $ | — | $ | 1,088 | ||||||||||
Derivative liabilities | Derivative liabilities | — | — | — | 288 | Derivative liabilities | — | — | — | 347 |
At December 31, 2022 | ||||||||||||||
$ in millions | RML | CML | U.S. Agency CMO | CLN and Other1 | ||||||||||
SPE assets (UPB)2,3 | $ | 3,732 | $ | 73,069 | $ | 6,448 | $ | 10,928 | ||||||
Retained interests | ||||||||||||||
Investment grade | $ | 137 | $ | 927 | $ | 367 | $ | — | ||||||
Non-investment grade | 26 | 465 | 11 | 44 | ||||||||||
Total | $ | 163 | $ | 1,392 | $ | 378 | $ | 44 | ||||||
Interests purchased in the secondary market3 | ||||||||||||||
Investment grade | $ | 82 | $ | 51 | $ | 10 | $ | — | ||||||
Non-investment grade | 35 | 23 | — | — | ||||||||||
Total | $ | 117 | $ | 74 | $ | 10 | $ | — | ||||||
Derivative assets | $ | — | $ | — | $ | — | $ | 1,114 | ||||||
Derivative liabilities | — | — | — | 201 |
Fair Value At March 31, 2023 | Fair Value At September 30, 2023 | |||||||||||||||||||||
$ 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 | $ | 561 | $ | — | $ | 561 | Investment grade | $ | 475 | $ | — | $ | 475 | ||||||||
Non-investment grade | Non-investment grade | 17 | 51 | 68 | Non-investment grade | 5 | 59 | 64 | ||||||||||||||
Total | Total | $ | 578 | $ | 51 | $ | 629 | Total | $ | 480 | $ | 59 | $ | 539 | ||||||||
Interests purchased in the secondary market3 | Interests purchased in the secondary market3 | Interests purchased in the secondary market3 | ||||||||||||||||||||
Investment grade | Investment grade | $ | 74 | $ | 2 | $ | 76 | Investment grade | $ | 46 | $ | 1 | $ | 47 | ||||||||
Non-investment grade | Non-investment grade | 13 | 9 | 22 | Non-investment grade | 12 | 4 | 16 | ||||||||||||||
Total | Total | $ | 87 | $ | 11 | $ | 98 | Total | $ | 58 | $ | 5 | $ | 63 | ||||||||
Derivative assets | Derivative assets | $ | 1,151 | $ | — | $ | 1,151 | Derivative assets | $ | 1,088 | $ | — | $ | 1,088 | ||||||||
Derivative liabilities | Derivative liabilities | 288 | — | 288 | Derivative liabilities | 347 | — | 347 |
Fair Value at December 31, 2022 | |||||||||||
$ in millions | Level 2 | Level 3 | Total | ||||||||
Retained interests | |||||||||||
Investment grade | $ | 489 | $ | — | $ | 489 | |||||
Non-investment grade | 25 | 16 | 41 | ||||||||
Total | $ | 514 | $ | 16 | $ | 530 | |||||
Interests purchased in the secondary market3 | |||||||||||
Investment grade | $ | 140 | $ | 3 | $ | 143 | |||||
Non-investment grade | 42 | 16 | 58 | ||||||||
Total | $ | 182 | $ | 19 | $ | 201 | |||||
Derivative assets | $ | 1,114 | $ | — | $ | 1,114 | |||||
Derivative liabilities | 153 | 48 | 201 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
New transactions1 | New transactions1 | $ | 2,521 | $ | 8,260 | New transactions1 | $ | 9,132 | $ | 5,332 | $ | 15,257 | $ | 19,809 | ||||||||||||||
Retained interests | Retained interests | 1,575 | 1,622 | Retained interests | 115 | 500 | 2,767 | 3,553 | ||||||||||||||||||||
Sales of corporate loans to CLO SPEs1, 2 | Sales of corporate loans to CLO SPEs1, 2 | — | 4 | Sales of corporate loans to CLO SPEs1, 2 | — | 37 | — | 53 |
67 | September 2023 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Gross cash proceeds from sale of assets1 | Gross cash proceeds from sale of assets1 | $ | 49,167 | $ | 49,059 | Gross cash proceeds from sale of assets1 | $ | 49,472 | $ | 49,059 | ||||||
Fair value | Fair value | Fair value | ||||||||||||||
Assets sold | Assets sold | $ | 49,824 | $ | 47,281 | Assets sold | $ | 49,642 | $ | 47,281 | ||||||
Derivative assets recognized in the balance sheet | Derivative assets recognized in the balance sheet | 885 | 116 | Derivative assets recognized in the balance sheet | 529 | 116 | ||||||||||
Derivative liabilities recognized in the balance sheet | Derivative liabilities recognized in the balance sheet | 228 | 1,893 | Derivative liabilities recognized in the balance sheet | 359 | 1,893 |
(Unaudited) |
At March 31, 2023 and December 31, 2022 | At September 30, 2023 and December 31, 2022 | |||||||||||||||
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 | 5.8% | N/A | SCB | 5.8% | 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 requirement | Capital buffer requirement | 8.8% | 5.5% | Capital buffer requirement | 8.8% | 5.5% |
Regulatory Minimum | At March 31, 2023 and December 31, 2022 | Regulatory Minimum | At September 30, 2023 and December 31, 2022 | |||||||||||||||||||
Standardized | Advanced | Standardized | Advanced | |||||||||||||||||||
Required ratios1 | Required ratios1 | Required ratios1 | ||||||||||||||||||||
Common Equity Tier 1 capital ratio | Common Equity Tier 1 capital ratio | 4.5 | % | 13.3% | 10.0% | Common Equity Tier 1 capital ratio | 4.5 | % | 13.3% | 10.0% | ||||||||||||
Tier 1 capital ratio | Tier 1 capital ratio | 6.0 | % | 14.8% | 11.5% | Tier 1 capital ratio | 6.0 | % | 14.8% | 11.5% | ||||||||||||
Total capital ratio | Total capital ratio | 8.0 | % | 16.8% | 13.5% | Total capital ratio | 8.0 | % | 16.8% | 13.5% |
September 2023 Form 10-Q | 68 |
Notes to Consolidated Financial Statements (Unaudited) |
$ in millions | $ in millions | Required Ratio1 | At March 31, 2023 | At December 31, 2022 | $ in millions | Required Ratio1 | At September 30, 2023 | At December 31, 2022 | ||||||||||||||||||||||||||||||||
Risk-based capital | Risk-based capital | Risk-based capital | ||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 capital | Common Equity Tier 1 capital | $ | 69,454 | $ | 68,670 | Common Equity Tier 1 capital | $ | 69,148 | $ | 68,670 | ||||||||||||||||||||||||||||||
Tier 1 capital | Tier 1 capital | 77,947 | 77,191 | Tier 1 capital | 77,891 | 77,191 | ||||||||||||||||||||||||||||||||||
Total capital | Total capital | 89,794 | 86,575 | Total capital | 88,573 | 86,575 | ||||||||||||||||||||||||||||||||||
Total RWA | Total RWA | 459,107 | 447,849 | Total RWA | 443,816 | 447,849 | ||||||||||||||||||||||||||||||||||
Common Equity Tier 1 capital ratio | Common Equity Tier 1 capital ratio | 13.3 | % | 15.1 | % | 15.3 | % | Common Equity Tier 1 capital ratio | 13.3 | % | 15.6 | % | 15.3 | % | ||||||||||||||||||||||||||
Tier 1 capital ratio | Tier 1 capital ratio | 14.8 | % | 17.0 | % | 17.2 | % | Tier 1 capital ratio | 14.8 | % | 17.6 | % | 17.2 | % | ||||||||||||||||||||||||||
Total capital ratio | Total capital ratio | 16.8 | % | 19.6 | % | 19.3 | % | Total capital ratio | 16.8 | % | 20.0 | % | 19.3 | % | ||||||||||||||||||||||||||
$ in millions | $ in millions | Required Ratio1 | At March 31, 2023 | At December 31, 2022 | $ in millions | Required Ratio1 | At September 30, 2023 | At December 31, 2022 | ||||||||||||||||||||||||||||||||
Leverage-based capital | Leverage-based capital | Leverage-based capital | ||||||||||||||||||||||||||||||||||||||
Adjusted average assets2 | Adjusted average assets2 | $ | 1,168,328 | $ | 1,150,772 | Adjusted average assets2 | $ | 1,152,379 | $ | 1,150,772 | ||||||||||||||||||||||||||||||
Tier 1 leverage ratio | Tier 1 leverage ratio | 4.0 | % | 6.7 | % | 6.7 | % | Tier 1 leverage ratio | 4.0 | % | 6.8 | % | 6.7 | % | ||||||||||||||||||||||||||
Supplementary leverage exposure3 | Supplementary leverage exposure3 | $ | 1,422,808 | $ | 1,399,403 | Supplementary leverage exposure3 | $ | 1,416,310 | $ | 1,399,403 | ||||||||||||||||||||||||||||||
SLR | SLR | 5.0 | % | 5.5 | % | 5.5 | % | SLR | 5.0 | % | 5.5 | % | 5.5 | % |
(Unaudited) |
Well-Capitalized Requirement | Required Ratio1 | At March 31, 2023 | At December 31, 2022 | Well-Capitalized Requirement | Required Ratio1 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | 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 | % | $ | 21,485 | 21.5 | % | $ | 20,043 | 20.5 | % | Common Equity Tier 1 capital | 6.5 | % | 7.0 | % | $ | 21,250 | 20.9 | % | $ | 20,043 | 20.5 | % | ||||||||||||||
Tier 1 capital | Tier 1 capital | 8.0 | % | 8.5 | % | 21,485 | 21.5 | % | 20,043 | 20.5 | % | Tier 1 capital | 8.0 | % | 8.5 | % | 21,250 | 20.9 | % | 20,043 | 20.5 | % | ||||||||||||||||||
Total capital | Total capital | 10.0 | % | 10.5 | % | 22,221 | 22.3 | % | 20,694 | 21.1 | % | Total capital | 10.0 | % | 10.5 | % | 22,129 | 21.7 | % | 20,694 | 21.1 | % | ||||||||||||||||||
Leverage-based capital | Leverage-based capital | Leverage-based capital | ||||||||||||||||||||||||||||||||||||||
Tier 1 leverage | Tier 1 leverage | 5.0 | % | 4.0 | % | $ | 21,485 | 10.5 | % | $ | 20,043 | 10.1 | % | Tier 1 leverage | 5.0 | % | 4.0 | % | $ | 21,250 | 10.2 | % | $ | 20,043 | 10.1 | % | ||||||||||||||
SLR | SLR | 6.0 | % | 3.0 | % | 21,485 | 8.3 | % | 20,043 | 8.1 | % | SLR | 6.0 | % | 3.0 | % | 21,250 | 7.9 | % | 20,043 | 8.1 | % |
Well-Capitalized Requirement | Required Ratio1 | At March 31, 2023 | At December 31, 2022 | Well-Capitalized Requirement | Required Ratio1 | At September 30, 2023 | At December 31, 2022 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | 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 | % | $ | 16,321 | 28.3 | % | $ | 15,546 | 27.5 | % | Common Equity Tier 1 capital | 6.5 | % | 7.0 | % | $ | 16,012 | 26.9 | % | $ | 15,546 | 27.5 | % | ||||||||||||||
Tier 1 capital | Tier 1 capital | 8.0 | % | 8.5 | % | 16,321 | 28.3 | % | 15,546 | 27.5 | % | Tier 1 capital | 8.0 | % | 8.5 | % | 16,012 | 26.9 | % | 15,546 | 27.5 | % | ||||||||||||||||||
Total capital | Total capital | 10.0 | % | 10.5 | % | 16,521 | 28.6 | % | 15,695 | 27.8 | % | Total capital | 10.0 | % | 10.5 | % | 16,315 | 27.4 | % | 15,695 | 27.8 | % | ||||||||||||||||||
Leverage-based capital | Leverage-based capital | Leverage-based capital | ||||||||||||||||||||||||||||||||||||||
Tier 1 leverage | Tier 1 leverage | 5.0 | % | 4.0 | % | $ | 16,321 | 8.1 | % | $ | 15,546 | 7.6 | % | Tier 1 leverage | 5.0 | % | 4.0 | % | $ | 16,012 | 8.0 | % | $ | 15,546 | 7.6 | % | ||||||||||||||
SLR | SLR | 6.0 | % | 3.0 | % | 16,321 | 7.8 | % | 15,546 | 7.4 | % | SLR | 6.0 | % | 3.0 | % | 16,012 | 7.7 | % | 15,546 | 7.4 | % |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Net capital | Net capital | $ | 17,616 | $ | 17,224 | Net capital | $ | 18,947 | $ | 17,224 | ||||||
Excess net capital | Excess net capital | 13,134 | 12,861 | Excess net capital | 14,683 | 12,861 |
69 | September 2023 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
(Unaudited) |
Shares Outstanding | Carrying Value | Shares Outstanding | Carrying Value | |||||||||||||||||||||||||
$ in millions, except per share data | $ in millions, except per share data | At March 31, 2023 | Liquidation Preference per Share | At March 31, 2023 | At December 31, 2022 | $ in millions, except per share data | At September 30, 2023 | Liquidation Preference per Share | At September 30, 2023 | At December 31, 2022 | ||||||||||||||||||
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 | ||||||||||||||||||
I | I | 40,000 | 25,000 | 1,000 | 1,000 | I | 40,000 | 25,000 | 1,000 | 1,000 | ||||||||||||||||||
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 | O | 52,000 | 25,000 | 1,300 | 1,300 | ||||||||||||||||||
P | P | 40,000 | 25,000 | 1,000 | 1,000 | P | 40,000 | 25,000 | 1,000 | 1,000 | ||||||||||||||||||
Total | Total | $ | 8,750 | $ | 8,750 | Total | $ | 8,750 | $ | 8,750 | ||||||||||||||||||
Shares authorized | Shares authorized | 30,000,000 | Shares authorized | 30,000,000 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Repurchases of common stock under the Firm’s Share Repurchase Authorization | Repurchases of common stock under the Firm’s Share Repurchase Authorization | $ | 1,500 | $ | 2,872 | Repurchases of common stock under the Firm’s Share Repurchase Authorization | $ | 1,500 | $ | 2,555 | $ | 4,000 | $ | 8,165 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
in millions | in millions | 2023 | 2022 | in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Weighted average common shares outstanding, basic | Weighted average common shares outstanding, basic | 1,645 | 1,733 | Weighted average common shares outstanding, basic | 1,624 | 1,674 | 1,635 | 1,704 | ||||||||||||||||||||
Effect of dilutive RSUs and PSUs | Effect of dilutive RSUs and PSUs | 18 | 22 | Effect of dilutive RSUs and PSUs | 19 | 23 | 18 | 21 | ||||||||||||||||||||
Weighted average common shares outstanding and common stock equivalents, diluted | Weighted average common shares outstanding and common stock equivalents, diluted | 1,663 | 1,755 | Weighted average common shares outstanding and common stock equivalents, diluted | 1,643 | 1,697 | 1,653 | 1,725 | ||||||||||||||||||||
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) | 4 | 5 | Weighted average antidilutive common stock equivalents (excluded from the computation of diluted EPS) | — | 1 | 3 | 5 |
September 2023 Form 10-Q | 70 |
Notes to Consolidated Financial Statements (Unaudited) | ||||||||||||||
$ in millions, except per share data | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | ||||||||||||
Per Share1 | Total | Per Share1 | Total | |||||||||||
Preferred stock series | ||||||||||||||
A | $ | 343 | $ | 15 | $ | 242 | $ | 11 | ||||||
C | 25 | 13 | 25 | 13 | ||||||||||
E | 445 | 15 | 445 | 15 | ||||||||||
F | 430 | 14 | 430 | 14 | ||||||||||
I | 398 | 16 | 398 | 16 | ||||||||||
K | 366 | 15 | 366 | 15 | ||||||||||
L | 305 | 6 | 305 | 6 | ||||||||||
M2 | 29 | 12 | 29 | 12 | ||||||||||
N3 | 2,650 | 8 | 2,650 | 8 | ||||||||||
O4 | 266 | 14 | 266 | 14 | ||||||||||
P | 406 | 16 | — | — | ||||||||||
Total Preferred stock | $ | 144 | $ | 124 | ||||||||||
Common stock | $ | 0.775 | $ | 1,305 | $ | 0.700 | $ | 1,252 |
$ in millions, except per share data | Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | ||||||||||||
Per Share1 | Total | Per Share1 | Total | |||||||||||
Preferred stock series | ||||||||||||||
A | $ | 396 | $ | 17 | $ | 261 | $ | 11 | ||||||
C | 25 | 13 | 25 | 13 | ||||||||||
E | 445 | 15 | 445 | 15 | ||||||||||
F | 430 | 15 | 430 | 15 | ||||||||||
I | 398 | 16 | 398 | 16 | ||||||||||
K | 366 | 15 | 366 | 15 | ||||||||||
L | 305 | 6 | 305 | 6 | ||||||||||
M2 | 29 | 12 | 29 | 12 | ||||||||||
N3 | 2,226 | 7 | 2,650 | 8 | ||||||||||
O | 266 | 14 | 266 | 14 | ||||||||||
P | 406 | 16 | 330 | 13 | ||||||||||
Total Preferred stock | $ | 146 | $ | 138 | ||||||||||
Common stock | $ | 0.850 | $ | 1,404 | $ | 0.775 | $ | 1,329 |
$ in millions, except per share data | Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2022 | ||||||||||||
Per Share1 | Total | Per Share1 | Total | |||||||||||
Preferred stock series | ||||||||||||||
A | $ | 1,116 | $ | 49 | $ | 756 | $ | 33 | ||||||
C | 75 | 39 | 75 | 39 | ||||||||||
E | 1,336 | 46 | 1,336 | 45 | ||||||||||
F | 1,289 | 44 | 1,289 | 44 | ||||||||||
I | 1,195 | 48 | 1,195 | 48 | ||||||||||
K | 1,097 | 44 | 1,097 | 45 | ||||||||||
L | 914 | 18 | 914 | 18 | ||||||||||
M2 | 59 | 24 | 59 | 24 | ||||||||||
N3 | 6,928 | 21 | 5,300 | 16 | ||||||||||
O | 797 | 41 | 797 | 41 | ||||||||||
P | 1,219 | 49 | 330 | 13 | ||||||||||
Total Preferred stock | $ | 423 | $ | 366 | ||||||||||
Common stock | $ | 2.40 | $ | 4,001 | $ | 2.175 | $ | 3,802 |
$ in millions | $ in millions | CTA | AFS Securities | Pension and Other | DVA | Cash Flow Hedges | Total | $ in millions | CTA | AFS Securities | Pension and Other | DVA | Cash Flow Hedges | Total | ||||||||||||||||||||||||||
June 30, 2023 | June 30, 2023 | $ | (1,199) | $ | (3,701) | $ | (510) | $ | (873) | $ | (17) | $ | (6,300) | |||||||||||||||||||||||||||
OCI during the period | OCI during the period | (120) | (366) | (1) | (412) | (3) | (902) | |||||||||||||||||||||||||||||||||
September 30, 2023 | September 30, 2023 | $ | (1,319) | $ | (4,067) | $ | (511) | $ | (1,285) | $ | (20) | $ | (7,202) | |||||||||||||||||||||||||||
June 30, 2022 | June 30, 2022 | $ | (1,226) | $ | (3,226) | $ | (543) | $ | (26) | $ | — | $ | (5,021) | |||||||||||||||||||||||||||
OCI during the period | OCI during the period | (207) | (1,307) | 5 | 772 | — | (737) | |||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | $ | (1,433) | $ | (4,533) | $ | (538) | $ | 746 | $ | — | $ | (5,758) | |||||||||||||||||||||||||||
December 31, 2022 | December 31, 2022 | $ | (1,204) | $ | (4,192) | $ | (508) | $ | (345) | $ | (4) | $ | (6,253) | |||||||||||||||||||||||||||
OCI during the period | OCI during the period | (115) | 125 | (3) | (940) | (16) | (949) | |||||||||||||||||||||||||||||||||
September 30, 2023 | September 30, 2023 | $ | (1,319) | $ | (4,067) | $ | (511) | $ | (1,285) | $ | (20) | $ | (7,202) | |||||||||||||||||||||||||||
December 31, 2021 | December 31, 2021 | $ | (1,002) | $ | 245 | $ | (551) | $ | (1,794) | $ | — | $ | (3,102) | |||||||||||||||||||||||||||
OCI during the period | OCI during the period | (431) | (4,778) | 13 | 2,540 | — | (2,656) | |||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | $ | (1,433) | $ | (4,533) | $ | (538) | $ | 746 | $ | — | $ | (5,758) | |||||||||||||||||||||||||||
December 31, 2022 | $ | (1,204) | $ | (4,192) | $ | (508) | $ | (345) | $ | (4) | $ | (6,253) | ||||||||||||||||||||||||||||
OCI during the period | 32 | 512 | (1) | (8) | 7 | 542 | ||||||||||||||||||||||||||||||||||
March 31, 2023 | $ | (1,172) | $ | (3,680) | $ | (509) | $ | (353) | $ | 3 | $ | (5,711) | ||||||||||||||||||||||||||||
December 31, 2021 | $ | (1,002) | $ | 245 | $ | (551) | $ | (1,794) | $ | — | $ | (3,102) | ||||||||||||||||||||||||||||
OCI during the period | (48) | (2,395) | 5 | 638 | — | (1,800) | ||||||||||||||||||||||||||||||||||
March 31, 2022 | $ | (1,050) | $ | (2,150) | $ | (546) | $ | (1,156) | $ | — | $ | (4,902) |
Three Months Ended September 30, 2023 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non-controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | (38) | $ | (111) | $ | (149) | $ | (29) | $ | (120) | |||||||
Reclassified to earnings | — | — | — | — | — | ||||||||||||
Net OCI | $ | (38) | $ | (111) | $ | (149) | $ | (29) | $ | (120) | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | (464) | $ | 108 | $ | (356) | $ | — | $ | (356) | |||||||
Reclassified to earnings | (14) | 4 | (10) | — | (10) | ||||||||||||
Net OCI | $ | (478) | $ | 112 | $ | (366) | $ | — | $ | (366) | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||
Reclassified to earnings | (1) | — | (1) | — | (1) | ||||||||||||
Net OCI | $ | (1) | $ | — | $ | (1) | $ | — | $ | (1) | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | (549) | $ | 130 | $ | (419) | $ | (2) | $ | (417) | |||||||
Reclassified to earnings | 6 | (1) | 5 | — | 5 | ||||||||||||
Net OCI | $ | (543) | $ | 129 | $ | (414) | $ | (2) | $ | (412) | |||||||
Change in fair value of cash flow hedge derivatives | |||||||||||||||||
OCI activity | $ | (12) | $ | 3 | $ | (9) | $ | — | $ | (9) | |||||||
Reclassified to earnings | 6 | — | 6 | — | 6 | ||||||||||||
Net OCI | $ | (6) | $ | 3 | $ | (3) | $ | — | $ | (3) |
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 |
71 |
Notes to Consolidated Financial Statements (Unaudited) |
Nine Months Ended September 30, 2023 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non-controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | (136) | $ | (104) | $ | (240) | $ | (125) | $ | (115) | |||||||
Reclassified to earnings | — | — | — | — | — | ||||||||||||
Net OCI | $ | (136) | $ | (104) | $ | (240) | $ | (125) | $ | (115) | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | 208 | $ | (49) | $ | 159 | $ | — | $ | 159 | |||||||
Reclassified to earnings | (45) | 11 | (34) | — | (34) | ||||||||||||
Net OCI | $ | 163 | $ | (38) | $ | 125 | $ | — | $ | 125 | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | (1) | $ | — | $ | (1) | $ | — | $ | (1) | |||||||
Reclassified to earnings | (2) | — | (2) | — | (2) | ||||||||||||
Net OCI | $ | (3) | $ | — | $ | (3) | $ | — | $ | (3) | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | (1,283) | $ | 311 | $ | (972) | $ | (20) | $ | (952) | |||||||
Reclassified to earnings | 15 | (3) | 12 | — | 12 | ||||||||||||
Net OCI | $ | (1,268) | $ | 308 | $ | (960) | $ | (20) | $ | (940) | |||||||
Change in fair value of cash flow hedge derivatives | |||||||||||||||||
OCI activity | $ | (30) | $ | 6 | $ | (24) | $ | — | $ | (24) | |||||||
Reclassified to earnings | 9 | (1) | 8 | — | 8 | ||||||||||||
Net OCI | $ | (21) | $ | 5 | $ | (16) | $ | — | $ | (16) |
Three Months Ended March 31, 2023 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non-controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | (10) | $ | 30 | $ | 20 | $ | (12) | $ | 32 | |||||||
Reclassified to earnings | — | — | — | — | — | ||||||||||||
Net OCI | $ | (10) | $ | 30 | $ | 20 | $ | (12) | $ | 32 | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | 710 | $ | (167) | $ | 543 | $ | — | $ | 543 | |||||||
Reclassified to earnings | (41) | 10 | (31) | — | (31) | ||||||||||||
Net OCI | $ | 669 | $ | (157) | $ | 512 | $ | — | $ | 512 | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||
Reclassified to earnings | (1) | — | (1) | — | (1) | ||||||||||||
Net OCI | $ | (1) | $ | — | $ | (1) | $ | — | $ | (1) | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | (30) | $ | 10 | $ | (20) | $ | (7) | $ | (13) | |||||||
Reclassified to earnings | 6 | (1) | 5 | — | 5 | ||||||||||||
Net OCI | $ | (24) | $ | 9 | $ | (15) | $ | (7) | $ | (8) | |||||||
Change in fair value of cash flow hedge derivatives | |||||||||||||||||
OCI activity | $ | 7 | $ | (1) | $ | 6 | $ | — | $ | 6 | |||||||
Reclassified to earnings | 1 | — | 1 | — | 1 | ||||||||||||
Net OCI | $ | 8 | $ | (1) | $ | 7 | $ | — | $ | 7 |
Three Months Ended March 31, 2022 | Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non-controlling Interests | Net | $ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non-controlling Interests | Net | ||||||||||||||||||||||
CTA | CTA | CTA | ||||||||||||||||||||||||||||||||
OCI activity | OCI activity | $ | (60) | $ | (45) | $ | (105) | $ | (57) | $ | (48) | OCI activity | $ | (279) | $ | (441) | $ | (720) | $ | (230) | $ | (490) | ||||||||||||
Reclassified to earnings | Reclassified to earnings | — | — | — | — | — | Reclassified to earnings | — | 59 | 59 | — | 59 | ||||||||||||||||||||||
Net OCI | Net OCI | $ | (60) | $ | (45) | $ | (105) | $ | (57) | $ | (48) | Net OCI | $ | (279) | $ | (382) | $ | (661) | $ | (230) | $ | (431) | ||||||||||||
Change in net unrealized gains (losses) on AFS securities | Change in net unrealized gains (losses) on AFS securities | Change in net unrealized gains (losses) on AFS securities | ||||||||||||||||||||||||||||||||
OCI activity | OCI activity | $ | (3,084) | $ | 723 | $ | (2,361) | $ | — | $ | (2,361) | OCI activity | $ | (6,169) | $ | 1,445 | $ | (4,724) | $ | — | $ | (4,724) | ||||||||||||
Reclassified to earnings | Reclassified to earnings | (44) | 10 | (34) | — | (34) | Reclassified to earnings | (71) | 17 | (54) | — | (54) | ||||||||||||||||||||||
Net OCI | Net OCI | $ | (3,128) | $ | 733 | $ | (2,395) | $ | — | $ | (2,395) | Net OCI | $ | (6,240) | $ | 1,462 | $ | (4,778) | $ | — | $ | (4,778) | ||||||||||||
Pension and other | Pension and other | Pension and other | ||||||||||||||||||||||||||||||||
OCI activity | OCI activity | $ | — | $ | — | $ | — | $ | — | $ | — | OCI activity | $ | (1) | $ | — | $ | (1) | $ | — | $ | (1) | ||||||||||||
Reclassified to earnings | Reclassified to earnings | 5 | — | 5 | — | 5 | Reclassified to earnings | 17 | (3) | 14 | — | 14 | ||||||||||||||||||||||
Net OCI | Net OCI | $ | 5 | $ | — | $ | 5 | $ | — | $ | 5 | Net OCI | $ | 16 | $ | (3) | $ | 13 | $ | — | $ | 13 | ||||||||||||
Change in net DVA | Change in net DVA | Change in net DVA | ||||||||||||||||||||||||||||||||
OCI activity | OCI activity | $ | 871 | $ | (211) | $ | 660 | $ | 22 | $ | 638 | OCI activity | $ | 3,474 | $ | (845) | $ | 2,629 | $ | 88 | $ | 2,541 | ||||||||||||
Reclassified to earnings | Reclassified to earnings | — | — | — | — | — | Reclassified to earnings | (1) | — | (1) | — | (1) | ||||||||||||||||||||||
Net OCI | Net OCI | $ | 871 | $ | (211) | $ | 660 | $ | 22 | $ | 638 | Net OCI | $ | 3,473 | $ | (845) | $ | 2,628 | $ | 88 | $ | 2,540 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Interest income | Interest income | Interest income | ||||||||||||||||||||||||||
Investment securities | Investment securities | $ | 1,018 | $ | 777 | Investment securities | $ | 1,019 | $ | 743 | $ | 2,886 | $ | 2,261 | ||||||||||||||
Loans | Loans | 2,815 | 1,156 | Loans | 3,236 | 1,910 | 9,105 | 4,469 | ||||||||||||||||||||
Securities purchased under agreements to resell1 | Securities purchased under agreements to resell1 | 1,477 | 13 | Securities purchased under agreements to resell1 | 1,977 | 664 | 5,282 | 870 | ||||||||||||||||||||
Securities borrowed2 | Securities borrowed2 | 1,172 | (217) | Securities borrowed2 | 1,307 | 385 | 3,848 | 97 | ||||||||||||||||||||
Trading assets, net of Trading liabilities | Trading assets, net of Trading liabilities | 913 | 524 | Trading assets, net of Trading liabilities | 1,334 | 635 | 3,171 | 1,722 | ||||||||||||||||||||
Customer receivables and Other3 | Customer receivables and Other3 | 3,475 | 397 | Customer receivables and Other3 | 4,432 | 1,764 | 11,931 | 2,944 | ||||||||||||||||||||
Total interest income | Total interest income | $ | 10,870 | $ | 2,650 | Total interest income | $ | 13,305 | $ | 6,101 | $ | 36,223 | $ | 12,363 | ||||||||||||||
Interest expense | Interest expense | Interest expense | ||||||||||||||||||||||||||
Deposits | Deposits | $ | 1,575 | $ | 73 | Deposits | $ | 2,271 | $ | 476 | $ | 5,793 | $ | 684 | ||||||||||||||
Borrowings | Borrowings | 2,506 | 685 | Borrowings | 2,992 | 1,370 | 8,267 | 2,990 | ||||||||||||||||||||
Securities sold under agreements to repurchase4 | Securities sold under agreements to repurchase4 | 1,218 | 49 | Securities sold under agreements to repurchase4 | 1,897 | 501 | 4,567 | 725 | ||||||||||||||||||||
Securities loaned5 | Securities loaned5 | 164 | 93 | Securities loaned5 | 208 | 135 | 575 | 340 | ||||||||||||||||||||
Customer payables and Other6 | Customer payables and Other6 | 3,061 | (466) | Customer payables and Other6 | 3,960 | 1,109 | 10,688 | 616 | ||||||||||||||||||||
Total interest expense | Total interest expense | $ | 8,524 | $ | 434 | Total interest expense | $ | 11,328 | $ | 3,591 | $ | 29,890 | $ | 5,355 | ||||||||||||||
Net interest | Net interest | $ | 2,346 | $ | 2,216 | Net interest | $ | 1,977 | $ | 2,510 | $ | 6,333 | $ | 7,008 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Customer and other receivables | Customer and other receivables | $ | 3,842 | $ | 4,139 | Customer and other receivables | $ | 4,705 | $ | 4,139 | ||||||
Customer and other payables | Customer and other payables | 3,957 | 4,273 | Customer and other payables | 4,718 | 4,273 |
72 |
Notes to Consolidated Financial Statements (Unaudited) |
Three Months Ended September 30, 2023 | |||||||||||||||||
$ in millions | IS | WM | IM | I/E | Total | ||||||||||||
Investment banking | $ | 938 | $ | 126 | $ | — | $ | (16) | $ | 1,048 | |||||||
Trading | 3,660 | (10) | 24 | 5 | 3,679 | ||||||||||||
Investments | 100 | 22 | 22 | — | 144 | ||||||||||||
Commissions and fees1 | 606 | 562 | — | (70) | 1,098 | ||||||||||||
Asset management1,2 | 150 | 3,629 | 1,312 | (60) | 5,031 | ||||||||||||
Other | 164 | 123 | 10 | (1) | 296 | ||||||||||||
Total non-interest revenues | 5,618 | 4,452 | 1,368 | (142) | 11,296 | ||||||||||||
Interest income | 9,790 | 3,797 | 37 | (319) | 13,305 | ||||||||||||
Interest expense | 9,739 | 1,845 | 69 | (325) | 11,328 | ||||||||||||
Net interest | 51 | 1,952 | (32) | 6 | 1,977 | ||||||||||||
Net revenues | $ | 5,669 | $ | 6,404 | $ | 1,336 | $ | (136) | $ | 13,273 | |||||||
Provision for credit losses | $ | 93 | $ | 41 | $ | — | $ | — | $ | 134 | |||||||
Compensation and benefits | 2,057 | 3,352 | 526 | — | 5,935 | ||||||||||||
Non-compensation expenses | 2,320 | 1,302 | 569 | (132) | 4,059 | ||||||||||||
Total non-interest expenses | $ | 4,377 | $ | 4,654 | $ | 1,095 | $ | (132) | $ | 9,994 | |||||||
Income before provision for income taxes | $ | 1,199 | $ | 1,709 | $ | 241 | $ | (4) | $ | 3,145 | |||||||
Provision for income taxes | 263 | 389 | 59 | (1) | 710 | ||||||||||||
Net income | 936 | 1,320 | 182 | (3) | 2,435 | ||||||||||||
Net income applicable to noncontrolling interests | 24 | — | 3 | — | 27 | ||||||||||||
Net income applicable to Morgan Stanley | $ | 912 | $ | 1,320 | $ | 179 | $ | (3) | $ | 2,408 |
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 March 31, 2023 | |||||||||||||||||
$ in millions | IS | WM | IM | I/E | Total | ||||||||||||
Investment banking | $ | 1,247 | $ | 104 | $ | — | $ | (21) | $ | 1,330 | |||||||
Trading | 4,257 | 227 | (16) | 9 | 4,477 | ||||||||||||
Investments | 28 | 16 | 101 | — | 145 | ||||||||||||
Commissions and fees1 | 714 | 590 | — | (65) | 1,239 | ||||||||||||
Asset management1,2 | 148 | 3,382 | 1,248 | (50) | 4,728 | ||||||||||||
Other | 180 | 82 | (6) | (4) | 252 | ||||||||||||
Total non-interest revenues | 6,574 | 4,401 | 1,327 | (131) | 12,171 | ||||||||||||
Interest income | 7,758 | 3,627 | 29 | (544) | 10,870 | ||||||||||||
Interest expense | 7,535 | 1,469 | 67 | (547) | 8,524 | ||||||||||||
Net interest | 223 | 2,158 | (38) | 3 | 2,346 | ||||||||||||
Net revenues | $ | 6,797 | $ | 6,559 | $ | 1,289 | $ | (128) | $ | 14,517 | |||||||
Provision for credit losses | $ | 189 | $ | 45 | $ | — | $ | — | $ | 234 | |||||||
Compensation and benefits | 2,365 | 3,477 | 568 | — | 6,410 | ||||||||||||
Non-compensation expenses | 2,351 | 1,325 | 555 | (118) | 4,113 | ||||||||||||
Total non-interest expenses | $ | 4,716 | $ | 4,802 | $ | 1,123 | $ | (118) | $ | 10,523 | |||||||
Income before provision for income taxes | $ | 1,892 | $ | 1,712 | $ | 166 | $ | (10) | $ | 3,760 | |||||||
Provision for income taxes | 363 | 336 | 30 | (2) | 727 | ||||||||||||
Net income | 1,529 | 1,376 | 136 | (8) | 3,033 | ||||||||||||
Net income applicable to noncontrolling interests | 51 | — | 2 | — | 53 | ||||||||||||
Net income applicable to Morgan Stanley | $ | 1,478 | $ | 1,376 | $ | 134 | $ | (8) | $ | 2,980 |
Three Months Ended March 31, 2022 | Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||
$ in millions | $ in millions | IS | WM | IM | I/E | Total | $ in millions | IS | WM | IM | I/E | Total | ||||||||||||||||||||||
Investment banking | Investment banking | $ | 1,634 | $ | 143 | $ | — | $ | (19) | $ | 1,758 | Investment banking | $ | 3,260 | $ | 339 | $ | — | $ | (66) | $ | 3,533 | ||||||||||||
Trading | Trading | 4,205 | (231) | (9) | 18 | 3,983 | Trading | 11,511 | 425 | (2) | 24 | 11,958 | ||||||||||||||||||||||
Investments | Investments | 99 | 12 | (36) | — | 75 | Investments | 151 | 60 | 173 | — | 384 | ||||||||||||||||||||||
Commissions and fees1 | Commissions and fees1 | 774 | 723 | — | (81) | 1,416 | Commissions and fees1 | 1,925 | 1,704 | — | (202) | 3,427 | ||||||||||||||||||||||
Asset management1,2 | Asset management1,2 | 147 | 3,626 | 1,388 | (42) | 5,119 | Asset management1,2 | 448 | 10,463 | 3,828 | (163) | 14,576 | ||||||||||||||||||||||
Other | Other | 117 | 122 | (2) | (3) | 234 | Other | 669 | 366 | 9 | (8) | 1,036 | ||||||||||||||||||||||
Total non-interest revenues | Total non-interest revenues | 6,976 | 4,395 | 1,341 | (127) | 12,585 | Total non-interest revenues | 17,964 | 13,357 | 4,008 | (415) | 34,914 | ||||||||||||||||||||||
Interest income | Interest income | 1,062 | 1,637 | 7 | (56) | 2,650 | Interest income | 26,364 | 11,124 | 95 | (1,360) | 36,223 | ||||||||||||||||||||||
Interest expense | Interest expense | 381 | 97 | 13 | (57) | 434 | Interest expense | 26,208 | 4,858 | 197 | (1,373) | 29,890 | ||||||||||||||||||||||
Net interest | Net interest | 681 | 1,540 | (6) | 1 | 2,216 | Net interest | 156 | 6,266 | (102) | 13 | 6,333 | ||||||||||||||||||||||
Net revenues | Net revenues | $ | 7,657 | $ | 5,935 | $ | 1,335 | $ | (126) | $ | 14,801 | Net revenues | $ | 18,120 | $ | 19,623 | $ | 3,906 | $ | (402) | $ | 41,247 | ||||||||||||
Provision for credit losses | Provision for credit losses | $ | 44 | $ | 13 | $ | — | $ | — | $ | 57 | Provision for credit losses | $ | 379 | $ | 150 | $ | — | $ | — | $ | 529 | ||||||||||||
Compensation and benefits | Compensation and benefits | 2,604 | 3,125 | 545 | — | 6,274 | Compensation and benefits | 6,637 | 10,332 | 1,638 | — | 18,607 | ||||||||||||||||||||||
Non-compensation expenses | Non-compensation expenses | 2,222 | 1,224 | 562 | (126) | 3,882 | Non-compensation expenses | 7,036 | 4,039 | 1,691 | (372) | 12,394 | ||||||||||||||||||||||
Total non-interest expenses | Total non-interest expenses | $ | 4,826 | $ | 4,349 | $ | 1,107 | $ | (126) | $ | 10,156 | Total non-interest expenses | $ | 13,673 | $ | 14,371 | $ | 3,329 | $ | (372) | $ | 31,001 | ||||||||||||
Income before provision for income taxes | Income before provision for income taxes | $ | 2,787 | $ | 1,573 | $ | 228 | $ | — | $ | 4,588 | Income before provision for income taxes | $ | 4,068 | $ | 5,102 | $ | 577 | $ | (30) | $ | 9,717 | ||||||||||||
Provision for income taxes | Provision for income taxes | 535 | 301 | 37 | — | 873 | Provision for income taxes | 802 | 1,098 | 135 | (7) | 2,028 | ||||||||||||||||||||||
Net income | Net income | 2,252 | 1,272 | 191 | — | 3,715 | Net income | 3,266 | 4,004 | 442 | (23) | 7,689 | ||||||||||||||||||||||
Net income applicable to noncontrolling interests | Net income applicable to noncontrolling interests | 61 | — | (12) | — | 49 | Net income applicable to noncontrolling interests | 117 | — | 2 | — | 119 | ||||||||||||||||||||||
Net income applicable to Morgan Stanley | Net income applicable to Morgan Stanley | $ | 2,191 | $ | 1,272 | $ | 203 | $ | — | $ | 3,666 | Net income applicable to Morgan Stanley | $ | 3,149 | $ | 4,004 | $ | 440 | $ | (23) | $ | 7,570 |
Nine Months Ended September 30, 2022 | |||||||||||||||||
$ in millions | IS | WM | IM | I/E | Total | ||||||||||||
Investment banking | $ | 3,983 | $ | 354 | $ | — | $ | (56) | $ | 4,281 | |||||||
Trading | 11,511 | (681) | 38 | 43 | 10,911 | ||||||||||||
Investments | (69) | 45 | (46) | — | (70) | ||||||||||||
Commissions and fees1 | 2,110 | 1,869 | — | (210) | 3,769 | ||||||||||||
Asset management1,2 | 442 | 10,525 | 3,961 | (153) | 14,775 | ||||||||||||
Other | (131) | 388 | (2) | (10) | 245 | ||||||||||||
Total non-interest revenues | 17,846 | 12,500 | 3,951 | (386) | 33,911 | ||||||||||||
Interest income | 6,797 | 6,208 | 34 | (676) | 12,363 | ||||||||||||
Interest expense | 5,050 | 917 | 71 | (683) | 5,355 | ||||||||||||
Net interest | 1,747 | 5,291 | (37) | 7 | 7,008 | ||||||||||||
Net revenues | $ | 19,593 | $ | 17,791 | $ | 3,914 | $ | (379) | $ | 40,919 | |||||||
Provision for credit losses | $ | 150 | $ | 43 | $ | — | $ | — | $ | 193 | |||||||
Compensation and benefits | 6,602 | 9,191 | 1,645 | — | 17,438 | ||||||||||||
Non-compensation expenses | 6,874 | 3,814 | 1,676 | (371) | 11,993 | ||||||||||||
Total non-interest expenses | $ | 13,476 | $ | 13,005 | $ | 3,321 | $ | (371) | $ | 29,431 | |||||||
Income before provision for income taxes | $ | 5,967 | $ | 4,743 | $ | 593 | $ | (8) | $ | 11,295 | |||||||
Provision for income taxes | 1,235 | 1,028 | 121 | (2) | 2,382 | ||||||||||||
Net income | 4,732 | 3,715 | 472 | (6) | 8,913 | ||||||||||||
Net income applicable to noncontrolling interests | 146 | — | (26) | — | 120 | ||||||||||||
Net income applicable to Morgan Stanley | $ | 4,586 | $ | 3,715 | $ | 498 | $ | (6) | $ | 8,793 |
73 | September 2023 Form 10-Q |
Notes to Consolidated Financial Statements (Unaudited) |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Institutional Securities Advisory | Institutional Securities Advisory | $ | 638 | $ | 944 | Institutional Securities Advisory | $ | 449 | $ | 693 | $ | 1,542 | $ | 2,235 | ||||||||||||||
Institutional Securities Underwriting | Institutional Securities Underwriting | 609 | 690 | Institutional Securities Underwriting | 489 | 584 | 1,718 | 1,748 | ||||||||||||||||||||
Firm Investment banking revenues from contracts with customers | Firm Investment banking revenues from contracts with customers | 89 | % | 90 | % | Firm Investment banking revenues from contracts with customers | 94 | % | 89 | % | 91 | % | 89 | % |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Interest rate | Interest rate | $ | 1,368 | $ | 391 | Interest rate | $ | 1,124 | $ | 1,070 | $ | 3,701 | $ | 1,930 | ||||||||||||||
Foreign exchange | Foreign exchange | 262 | 648 | Foreign exchange | 284 | 31 | 672 | 1,154 | ||||||||||||||||||||
Equity1 | Equity1 | 2,212 | 2,007 | Equity1 | 2,167 | 1,872 | 6,782 | 5,869 | ||||||||||||||||||||
Commodity and other | Commodity and other | 539 | 525 | Commodity and other | 447 | 279 | 1,321 | 1,288 | ||||||||||||||||||||
Credit | Credit | 96 | 412 | Credit | (343) | 79 | (518) | 670 | ||||||||||||||||||||
Total | Total | $ | 4,477 | $ | 3,983 | Total | $ | 3,679 | $ | 3,331 | $ | 11,958 | $ | 10,911 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Net cumulative unrealized performance-based fees at risk of reversing | Net cumulative unrealized performance-based fees at risk of reversing | $ | 815 | $ | 819 | Net cumulative unrealized performance-based fees at risk of reversing | $ | 782 | $ | 819 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Fee waivers | Fee waivers | $ | 18 | $ | 124 | Fee waivers | $ | 27 | $ | 28 | $ | 73 | $ | 193 |
(Unaudited) |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Transaction taxes | Transaction taxes | $ | 214 | $ | 258 | Transaction taxes | $ | 222 | $ | 215 | $ | 683 | $ | 701 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Americas | Americas | $ | 10,791 | $ | 10,464 | Americas | $ | 10,268 | $ | 10,094 | $ | 31,453 | $ | 30,220 | ||||||||||||||
EMEA | EMEA | 1,737 | 2,311 | EMEA | 1,479 | 1,392 | 4,716 | 5,381 | ||||||||||||||||||||
Asia | Asia | 1,989 | 2,026 | Asia | 1,526 | 1,500 | 5,078 | 5,318 | ||||||||||||||||||||
Total | Total | $ | 14,517 | $ | 14,801 | Total | $ | 13,273 | $ | 12,986 | $ | 41,247 | $ | 40,919 |
Three Months Ended March 31, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
$ in millions | $ in millions | 2023 | 2022 | $ in millions | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Non-interest revenues | Non-interest revenues | $ | 704 | $ | 1,005 | Non-interest revenues | $ | 468 | $ | 788 | $ | 1,350 | $ | 2,036 |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Customer and other receivables | Customer and other receivables | $ | 2,182 | $ | 2,577 | Customer and other receivables | $ | 2,334 | $ | 2,577 |
September 2023 Form 10-Q | 74 |
Notes to Consolidated Financial Statements (Unaudited) |
$ in millions | $ in millions | At March 31, 2023 | At December 31, 2022 | $ in millions | At September 30, 2023 | At December 31, 2022 | ||||||||||
Institutional Securities | Institutional Securities | $ | 819,195 | $ | 789,837 | Institutional Securities | $ | 790,180 | $ | 789,837 | ||||||
Wealth Management | Wealth Management | 363,405 | 373,305 | Wealth Management | 361,490 | 373,305 | ||||||||||
Investment Management | Investment Management | 17,304 | 17,089 | Investment Management | 17,343 | 17,089 | ||||||||||
Total1 | Total1 | $ | 1,199,904 | $ | 1,180,231 | Total1 | $ | 1,169,013 | $ | 1,180,231 |
Three Months Ended September 30, | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
$ in millions | Average Daily Balance | Interest | Annualized Average Rate | Average Daily Balance | Interest | Annualized Average Rate | ||||||||||||||
Interest earning assets | ||||||||||||||||||||
Investment securities1 | $ | 149,855 | $ | 1,019 | 2.7 | % | $ | 164,889 | $ | 743 | 1.8 | % | ||||||||
Loans1 | 215,797 | 3,236 | 5.9 | % | 209,551 | 1,910 | 3.6 | % | ||||||||||||
Securities purchased under agreements to resell2: | ||||||||||||||||||||
U.S. | 39,154 | 1,152 | 11.7 | % | 56,111 | 513 | 3.6 | % | ||||||||||||
Non-U.S. | 56,439 | 825 | 5.8 | % | 61,118 | 151 | 1.0 | % | ||||||||||||
Securities borrowed3: | ||||||||||||||||||||
U.S. | 109,269 | 1,204 | 4.4 | % | 126,061 | 373 | 1.2 | % | ||||||||||||
Non-U.S. | 17,641 | 103 | 2.3 | % | 17,966 | 12 | 0.3 | % | ||||||||||||
Trading assets, net of Trading liabilities4: | ||||||||||||||||||||
U.S. | 99,865 | 1,105 | 4.4 | % | 74,651 | 535 | 2.8 | % | ||||||||||||
Non-U.S. | 17,237 | 229 | 5.3 | % | 12,976 | 100 | 3.1 | % | ||||||||||||
Customer receivables and Other5: | ||||||||||||||||||||
U.S. | 103,860 | 3,240 | 12.4 | % | 105,345 | 1,378 | 5.2 | % | ||||||||||||
Non-U.S. | 59,641 | 1,192 | 7.9 | % | 76,056 | 386 | 2.0 | % | ||||||||||||
Total | $ | 868,758 | $ | 13,305 | 6.1 | % | $ | 904,724 | $ | 6,101 | 2.7 | % | ||||||||
Interest bearing liabilities | ||||||||||||||||||||
Deposits1 | $ | 341,475 | $ | 2,271 | 2.6 | % | $ | 337,288 | $ | 476 | 0.6 | % | ||||||||
Borrowings1,6 | 250,440 | 2,992 | 4.7 | % | 229,821 | 1,370 | 2.4 | % | ||||||||||||
Securities sold under agreements to repurchase7,9: | ||||||||||||||||||||
U.S. | 26,790 | 1,047 | 15.5 | % | 19,344 | 324 | 6.6 | % | ||||||||||||
Non-U.S. | 48,171 | 850 | 7.0 | % | 40,110 | 177 | 1.8 | % | ||||||||||||
Securities loaned8,9: | ||||||||||||||||||||
U.S. | 3,422 | 20 | 2.3 | % | 7,103 | 20 | 1.1 | % | ||||||||||||
Non-U.S. | 9,732 | 188 | 7.7 | % | 6,930 | 115 | 6.6 | % | ||||||||||||
Customer payables and Other10: | ||||||||||||||||||||
U.S. | 130,722 | 2,704 | 8.2 | % | 145,061 | 738 | 2.0 | % | ||||||||||||
Non-U.S. | 62,004 | 1,256 | 8.0 | % | 72,328 | 371 | 2.0 | % | ||||||||||||
Total | $ | 872,756 | $ | 11,328 | 5.1 | % | $ | 857,985 | $ | 3,591 | 1.7 | % | ||||||||
Net interest income and net interest rate spread | $ | 1,977 | 1.0 | % | $ | 2,510 | 1.0 | % |
Three Months Ended March 31, | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
$ in millions | Average Daily Balance | Interest | Annualized Average Rate | Average Daily Balance | Interest | Annualized Average Rate | ||||||||||||||
Interest earning assets | ||||||||||||||||||||
Investment securities1 | $ | 159,061 | $ | 1,018 | 2.6 | % | $ | 177,572 | $ | 777 | 1.8 | % | ||||||||
Loans1 | 214,185 | 2,815 | 5.3 | % | 191,551 | 1,156 | 2.4 | % | ||||||||||||
Securities purchased under agreements to resell2: | ||||||||||||||||||||
U.S. | 46,847 | 932 | 8.1 | % | 52,389 | 36 | 0.3 | % | ||||||||||||
Non-U.S. | 65,713 | 545 | 3.4 | % | 64,150 | (23) | (0.1) | % | ||||||||||||
Securities borrowed3: | ||||||||||||||||||||
U.S. | 123,206 | 1,095 | 3.6 | % | 122,203 | (176) | (0.6) | % | ||||||||||||
Non-U.S. | 18,683 | 77 | 1.7 | % | 21,229 | (41) | (0.8) | % | ||||||||||||
Trading assets, net of Trading liabilities4: | ||||||||||||||||||||
U.S. | 87,631 | 786 | 3.6 | % | 79,509 | 430 | 2.2 | % | ||||||||||||
Non-U.S. | 7,264 | 127 | 7.1 | % | 16,606 | 94 | 2.3 | % | ||||||||||||
Customer receivables and Other5: | ||||||||||||||||||||
U.S. | 107,055 | 2,428 | 9.2 | % | 129,162 | 355 | 1.1 | % | ||||||||||||
Non-U.S. | 69,288 | 1,047 | 6.1 | % | 76,545 | 42 | 0.2 | % | ||||||||||||
Total | $ | 898,933 | $ | 10,870 | 4.9 | % | $ | 930,916 | $ | 2,650 | 1.2 | % | ||||||||
Interest bearing liabilities | ||||||||||||||||||||
Deposits1 | $ | 346,973 | $ | 1,575 | 1.8 | % | $ | 348,916 | $ | 73 | 0.1 | % | ||||||||
Borrowings1,6 | 245,600 | 2,506 | 4.1 | % | 228,942 | 685 | 1.2 | % | ||||||||||||
Securities sold under agreements to repurchase7,9: | ||||||||||||||||||||
U.S. | 21,075 | 670 | 12.9 | % | 22,979 | 40 | 0.7 | % | ||||||||||||
Non-U.S. | 41,071 | 548 | 5.4 | % | 36,148 | 9 | 0.1 | % | ||||||||||||
Securities loaned8,9: | ||||||||||||||||||||
U.S. | 4,992 | 13 | 1.1 | % | 5,489 | (1) | (0.1) | % | ||||||||||||
Non-U.S. | 10,016 | 151 | 6.1 | % | 7,771 | 94 | 4.9 | % | ||||||||||||
Customer payables and Other10: | ||||||||||||||||||||
U.S. | 137,766 | 2,045 | 6.0 | % | 136,407 | (368) | (1.1) | % | ||||||||||||
Non-U.S. | 65,818 | 1,016 | 6.3 | % | 74,919 | (98) | (0.5) | % | ||||||||||||
Total | $ | 873,311 | $ | 8,524 | 4.0 | % | $ | 861,571 | $ | 434 | 0.2 | % | ||||||||
Net interest income and net interest rate spread | $ | 2,346 | 0.9 | % | $ | 2,216 | 1.0 | % |
Nine Months Ended September 30, | ||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
$ in millions | Average Daily Balance | Interest | Annualized Average Rate | Average Daily Balance | Interest | Annualized Average Rate | ||||||||||||||
Interest earning assets | ||||||||||||||||||||
Investment securities1 | $ | 154,304 | $ | 2,886 | 2.5 | % | $ | 169,926 | $ | 2,261 | 1.8 | % | ||||||||
Loans1 | 215,071 | 9,105 | 5.7 | % | 201,655 | 4,469 | 3.0 | % | ||||||||||||
Securities purchased under agreements to resell2: | ||||||||||||||||||||
U.S. | 46,670 | 3,216 | 9.2 | % | 56,451 | 719 | 1.7 | % | ||||||||||||
Non-U.S. | 61,648 | 2,066 | 4.5 | % | 62,273 | 151 | 0.3 | % | ||||||||||||
Securities borrowed3: | ||||||||||||||||||||
U.S. | 118,788 | 3,568 | 4.0 | % | 124,628 | 167 | 0.2 | % | ||||||||||||
Non-U.S. | 18,496 | 280 | 2.0 | % | 19,819 | (70) | (0.5) | % | ||||||||||||
Trading assets, net of Trading liabilities4: | ||||||||||||||||||||
U.S. | 91,621 | 2,662 | 3.9 | % | 74,993 | 1,418 | 2.5 | % | ||||||||||||
Non-U.S. | 11,548 | 509 | 5.9 | % | 14,668 | 304 | 2.8 | % | ||||||||||||
Customer receivables and Other5: | ||||||||||||||||||||
U.S. | 103,145 | 8,634 | 11.2 | % | 116,515 | 2,396 | 2.7 | % | ||||||||||||
Non-U.S. | 65,014 | 3,297 | 6.8 | % | 76,649 | 548 | 1.0 | % | ||||||||||||
Total | $ | 886,305 | $ | 36,223 | 5.5 | % | $ | 917,577 | $ | 12,363 | 1.8 | % | ||||||||
Interest bearing liabilities | ||||||||||||||||||||
Deposits1 | $ | 342,628 | $ | 5,793 | 2.3 | % | $ | 340,166 | $ | 684 | 0.3 | % | ||||||||
Borrowings1,6 | 248,534 | 8,267 | 4.4 | % | 228,589 | 2,990 | 1.7 | % | ||||||||||||
Securities sold under agreements to repurchase7,9: | ||||||||||||||||||||
U.S. | 22,851 | 2,467 | 14.4 | % | 20,957 | 487 | 3.1 | % | ||||||||||||
Non-U.S. | 44,373 | 2,100 | 6.3 | % | 39,694 | 238 | 0.8 | % | ||||||||||||
Securities loaned8,9: | ||||||||||||||||||||
U.S. | 4,097 | 50 | 1.6 | % | 6,354 | 21 | 0.4 | % | ||||||||||||
Non-U.S. | 10,000 | 525 | 7.0 | % | 7,308 | 319 | 5.8 | % | ||||||||||||
Customer payables and Other10: | ||||||||||||||||||||
U.S. | 135,061 | 7,281 | 7.2 | % | 144,691 | 311 | 0.3 | % | ||||||||||||
Non-U.S. | 64,771 | 3,407 | 7.0 | % | 75,510 | 305 | 0.5 | % | ||||||||||||
Total | $ | 872,315 | $ | 29,890 | 4.6 | % | $ | 863,269 | $ | 5,355 | 0.8 | % | ||||||||
Net interest income and net interest rate spread | $ | 6,333 | 0.9 | % | $ | 7,008 | 1.0 | % |
Glossary of Common Terms and Acronyms |
2022 Form 10-K | Annual report on Form 10-K for year ended December 31, 2022 filed with the SEC | ||||
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 sheet | Consolidated balance sheet | ||||
BHC | Bank holding company | ||||
bps | Basis points; one basis point equals 1/100th of 1% | ||||
Cash flow statement | Consolidated cash flow statement | ||||
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) | ||||
CRE | Commercial real estate | ||||
CRM | Credit Risk Management Department | ||||
CTA | Cumulative foreign currency translation adjustments | ||||
DCP | Certain employee deferred cash-based compensation plans linked to investment performance | ||||
DCP investments | Investments associated with DCP | ||||
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 holding company | ||||
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 statement | Consolidated income statement | ||||
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 | ||||
MSEHSE | Morgan Stanley Europe Holdings SE | ||||
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 | ||||
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. Bank Subsidiaries | Morgan Stanley Bank N.A. (“MSBNA”) and Morgan Stanley Private Bank, National Association (“MSPBNA”) | ||||
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 |
September 2023 Form 10-Q | 78 |
$ in millions, except per share data | Total Number of Shares Purchased1 | Average Price Paid per Share2 | Total Shares Purchased as Part of Share Repurchase Authorization3,4 | Dollar Value of Remaining Authorized Repurchase | ||||||||||
January | 8,974,630 | $ | 96.61 | 2,725,102 | $ | 15,484 | ||||||||
February | 7,212,253 | $ | 98.48 | 6,284,841 | $ | 14,865 | ||||||||
March | 6,830,645 | $ | 92.29 | 6,752,720 | $ | 14,245 | ||||||||
Three Months Ended March 31, 2023 | 23,017,528 | $ | 95.91 | 15,762,663 |
$ in millions, except per share data | Total Number of Shares Purchased1 | Average Price Paid per Share2 | Total Shares Purchased as Part of Share Repurchase Authorization3,4 | Dollar Value of Remaining Authorized Repurchase | ||||||||||
July | 2,421,782 | $ | 93.85 | 2,376,848 | $ | 19,777 | ||||||||
August | 8,834,821 | $ | 87.14 | 8,443,489 | $ | 19,043 | ||||||||
September | 6,329,787 | $ | 86.04 | 6,305,725 | $ | 18,500 | ||||||||
Three Months Ended September 30, 2023 | 17,586,390 | $ | 87.67 | 17,126,062 |
Exhibit No. | Description | ||||
10.1 | |||||
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 |