Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2017shares | |
Documentand Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | BK |
Entity Registrant Name | Bank of New York Mellon CORP |
Entity Central Index Key | 1,390,777 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding (shares) | 1,024,022,353 |
Consolidated Income Statement (
Consolidated Income Statement (unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Investment services fees: | ||||||
Asset servicing | $ 1,105 | $ 1,085 | $ 1,067 | $ 3,253 | $ 3,176 | |
Clearing services | 383 | 394 | 349 | 1,153 | 1,049 | |
Issuer services | 288 | 241 | 337 | 780 | 815 | |
Treasury services | 141 | 140 | 137 | 420 | 407 | |
Total investment services fees | 1,917 | 1,860 | 1,890 | 5,606 | 5,447 | |
Investment management and performance fees | 901 | 879 | 860 | 2,622 | 2,502 | |
Foreign exchange and other trading revenue | 173 | 165 | 183 | 502 | 540 | |
Financing-related fees | 54 | 53 | 58 | 162 | 169 | |
Distribution and servicing | 40 | 41 | 43 | 122 | 125 | |
Investment and other income | 63 | 122 | 92 | 262 | 271 | |
Total fee revenue | 3,148 | 3,120 | 3,126 | 9,276 | 9,054 | |
Net securities gains — including other-than-temporary impairment | 18 | 0 | 27 | 28 | 67 | |
Noncredit-related portion of other-than-temporary impairment (recognized in other comprehensive income) | (1) | 0 | 3 | (1) | 2 | |
Net securities gains | 19 | 0 | 24 | 29 | 65 | |
Total fee and other revenue | 3,167 | 3,120 | 3,150 | 9,305 | 9,119 | |
Operations of consolidated investment management funds | ||||||
Investment income | 10 | 10 | 20 | 57 | 27 | |
Interest of investment management fund note holders | 0 | 0 | 3 | 4 | 6 | |
Income from consolidated investment management funds | 10 | 10 | 17 | 53 | 21 | |
Net interest revenue | ||||||
Interest revenue | 1,151 | 1,052 | 874 | 3,163 | 2,647 | |
Interest expense | 312 | 226 | 100 | 706 | 340 | |
Net interest revenue | 839 | 826 | 774 | 2,457 | 2,307 | |
Total revenue | 4,016 | 3,956 | 3,941 | 11,815 | 11,447 | |
Provision for credit losses | (6) | (7) | (19) | (18) | (18) | |
Noninterest expense | ||||||
Staff | 1,469 | 1,417 | 1,467 | 4,358 | 4,338 | |
Professional, legal and other purchased services | 305 | 319 | 292 | 936 | 860 | |
Software | 175 | 173 | 156 | 514 | 470 | |
Net occupancy | 141 | 139 | 143 | 416 | 437 | |
Distribution and servicing | 109 | 104 | 105 | 313 | 307 | |
Sub-custodian | 62 | 65 | 59 | 191 | 188 | |
Furniture and equipment | 58 | 59 | 59 | 174 | 187 | |
Bank assessment charges | [1] | 51 | 59 | 61 | 167 | 166 |
Business development | 49 | 63 | 52 | 163 | 174 | |
Other | [1] | 177 | 192 | 170 | 536 | 546 |
Amortization of intangible assets | 52 | 53 | 61 | 157 | 177 | |
Merger and integration, litigation and restructuring charges | 6 | 12 | 18 | 26 | 42 | |
Total noninterest expense | 2,654 | 2,655 | 2,643 | 7,951 | 7,892 | |
Income | ||||||
Income before income taxes | 1,368 | 1,308 | 1,317 | 3,882 | 3,573 | |
Provision for income taxes | 348 | 332 | 324 | 949 | 897 | |
Net income | 1,020 | 976 | 993 | 2,933 | 2,676 | |
Net (income) loss attributable to noncontrolling interests (includes $(3), $(3), $(9), $(24) and $(6) related to consolidated investment management funds, respectively) | (2) | (1) | (6) | (18) | 1 | |
Net income applicable to shareholders of The Bank of New York Mellon Corporation | 1,018 | 975 | 987 | 2,915 | 2,677 | |
Preferred stock dividends | (35) | (49) | (13) | (126) | (74) | |
Net income applicable to common shareholders of The Bank of New York Mellon Corporation | 983 | 926 | 974 | 2,789 | 2,603 | |
Net income applicable to common shareholders of The Bank of New York Mellon Corporation used for the earnings per share calculation | ||||||
Net income applicable to common shareholders of The Bank of New York Mellon Corporation | 983 | 926 | 974 | 2,789 | 2,603 | |
Less: Earnings allocated to participating securities (a) | [2] | 8 | 13 | 15 | 35 | 39 |
Net income applicable to common shareholders of The Bank of New York Mellon Corporation after required adjustment for the calculation of basic and diluted earnings per common share | $ 975 | $ 913 | $ 959 | $ 2,754 | $ 2,564 | |
Average common shares and equivalents outstanding of The Bank of New York Mellon Corporation (a) | ||||||
Basic (shares) | [2] | 1,035,337 | 1,035,829 | 1,062,248 | 1,037,431 | 1,071,457 |
Common stock equivalents (shares) | [2] | 9,226 | 15,598 | 15,406 | 14,216 | 15,306 |
Less: Participating securities (shares) | [2] | (3,425) | (9,548) | (9,972) | (8,062) | (9,613) |
Diluted (shares) | [2] | 1,041,138 | 1,041,879 | 1,067,682 | 1,043,585 | 1,077,150 |
Anti-dilutive securities (shares) | [2],[3] | 8,059 | 16,256 | 32,232 | 13,906 | 32,699 |
Earnings per share applicable to the common shareholders of The Bank of New York Mellon Corporation | ||||||
Basic (usd per share) | [4] | $ 0.94 | $ 0.88 | $ 0.90 | $ 2.66 | $ 2.39 |
Diluted (usd per share) | [4] | $ 0.94 | $ 0.88 | $ 0.90 | $ 2.64 | $ 2.38 |
[1] | In the first quarter of 2017, we began disclosing bank assessment charges on a quarterly basis. The bank assessment charges were previously included in other expense. All prior periods were reclassified. | |||||
[2] | Beginning in the third quarter of 2017, vested stock awards to retirement eligible employees are included in common shares outstanding for earnings per share purposes. This change increased both average basic and average diluted shares outstanding by approximately 6 million and reduced earnings allocated to participating securities by $6 million for the quarter, which resulted in a de minimis impact to both basic and diluted earnings per share. | |||||
[3] | Represents stock options, restricted stock, restricted stock units and participating securities outstanding but not included in the computation of diluted average common shares because their effect would be anti-dilutive. | |||||
[4] | Basic and diluted earnings per share under the two-class method are determined on the net income applicable to common shareholders of The Bank of New York Mellon Corporation reported on the income statement less earnings allocated to participating securities. |
Consolidated Income Statement 3
Consolidated Income Statement (unaudited) (Parenthetical) shares in Thousands, $ in Millions | 3 Months Ended | |
Sep. 30, 2017USD ($)shares | ||
Net (income) loss attributable to noncontrolling interests | $ | $ (2) | |
Basic (shares) | shares | 1,035,337 | [1] |
Diluted (shares) | shares | 1,041,138 | [1] |
Less: Earnings allocated to participating securities (a) | $ | $ 8 | [1] |
Investment Management | ||
Net (income) loss attributable to noncontrolling interests | $ | $ (3) | |
Vested stock award | ||
Basic (shares) | shares | 6,000 | |
Diluted (shares) | shares | 6,000 | |
Less: Earnings allocated to participating securities (a) | $ | $ 6 | |
[1] | Beginning in the third quarter of 2017, vested stock awards to retirement eligible employees are included in common shares outstanding for earnings per share purposes. This change increased both average basic and average diluted shares outstanding by approximately 6 million and reduced earnings allocated to participating securities by $6 million for the quarter, which resulted in a de minimis impact to both basic and diluted earnings per share. |
Consolidated Comprehensive Inco
Consolidated Comprehensive Income Statement (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $ 1,020 | $ 976 | $ 993 | $ 2,933 | $ 2,676 | |
Other comprehensive income (loss), net of tax: | ||||||
Foreign currency translation adjustments | 286 | 330 | (186) | 741 | (433) | |
Unrealized gain on assets available-for-sale: | ||||||
Unrealized gain (loss) arising during the period | 28 | 91 | (53) | 213 | 227 | |
Reclassification adjustment | (12) | (1) | (15) | (19) | (43) | |
Total unrealized gain (loss) on assets available-for-sale | 16 | 90 | (68) | 194 | 184 | |
Defined benefit plans: | ||||||
Net gain arising during the period | 0 | 0 | 0 | 2 | 2 | |
Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost | 15 | 16 | 14 | 49 | 43 | |
Total defined benefit plans | 15 | 16 | 14 | 51 | 45 | |
Net unrealized gain (loss) on cash flow hedges | 0 | 1 | 2 | 11 | (4) | |
Total other comprehensive income (loss), net of tax | [1] | 317 | 437 | (238) | 997 | (208) |
Total comprehensive income | 1,337 | 1,413 | 755 | 3,930 | 2,468 | |
Net (income) loss attributable to noncontrolling interests | (2) | (1) | (6) | (18) | 1 | |
Other comprehensive (income) loss attributable to noncontrolling interests | (5) | (6) | 5 | (13) | 23 | |
Comprehensive income applicable to shareholders of The Bank of New York Mellon Corporation | $ 1,330 | $ 1,406 | $ 754 | $ 3,899 | $ 2,492 | |
[1] | Other comprehensive income (loss) attributable to The Bank of New York Mellon Corporation shareholders was $312 million for the quarter ended Sept. 30, 2017, $431 million for the quarter ended June 30, 2017, $(233) million for the quarter ended Sept. 30, 2016, $984 million for the nine months ended Sept. 30, 2017 and $(185) million for the nine months ended Sept. 30, 2016. |
Consolidated Comprehensive Inc5
Consolidated Comprehensive Income Statement (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||||
Other comprehensive income | $ 312 | $ 431 | $ (233) | $ 984 | $ (185) |
Consolidated Balance Sheet (una
Consolidated Balance Sheet (unaudited) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Securities: | |||
Held-to-maturity (fair value of $39,928 and $40,669) | $ 39,995 | ||
Loans | 59,068 | $ 64,458 | |
Allowance for loan losses | (161) | ||
Goodwill | 17,543 | 17,316 | |
Intangible assets | 3,461 | 3,598 | |
Other assets (includes $827 and $1,339, at fair value) | 22,287 | 20,954 | |
Total assets | 354,397 | 333,469 | |
Deposits: | |||
Total liabilities | 313,293 | 293,889 | |
Temporary equity | |||
Redeemable noncontrolling interests | 197 | 151 | |
Permanent equity | |||
Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 35,826 and 35,826 shares | 3,542 | 3,542 | |
Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,352,363,932 and 1,333,706,427 shares | 14 | 13 | |
Additional paid-in capital | 26,588 | 25,962 | |
Retained earnings | 24,757 | 22,621 | |
Accumulated other comprehensive loss, net of tax | (2,781) | (3,765) | |
Less: Treasury stock of 328,341,579 and 286,218,126 common shares, at cost | (11,597) | (9,562) | |
Total The Bank of New York Mellon Corporation shareholders’ equity | 40,523 | 38,811 | |
Nonredeemable noncontrolling interests of consolidated investment management funds | 384 | 618 | |
Total permanent equity | [1] | 40,907 | 39,429 |
Total liabilities, temporary equity and permanent equity | 354,397 | 333,469 | |
Investment Management funds | |||
Securities: | |||
Trading assets | 576 | 979 | |
Assets of consolidated investment management funds, at fair value | 802 | 1,231 | |
Deposits: | |||
Liabilities of consolidated investment management funds, at fair value | 27 | 315 | |
Operating segments | |||
Cash and due from: | |||
Banks | 5,557 | 4,822 | |
Interest-bearing deposits with the Federal Reserve and other central banks | 75,808 | 58,041 | |
Interest-bearing deposits with banks | 15,256 | 15,086 | |
Federal funds sold and securities purchased under resale agreements | 27,883 | 25,801 | |
Securities: | |||
Held-to-maturity (fair value of $39,928 and $40,669) | 39,995 | 40,905 | |
Available-for-sale | 80,054 | 73,822 | |
Total securities | 120,049 | 114,727 | |
Trading assets | 4,666 | 5,733 | |
Loans | 59,068 | 64,458 | |
Allowance for loan losses | (161) | (169) | |
Net loans | 58,907 | 64,289 | |
Premises and equipment | 1,631 | 1,303 | |
Accrued interest receivable | 547 | 568 | |
Goodwill | 17,543 | 17,316 | |
Intangible assets | 3,461 | 3,598 | |
Other assets (includes $827 and $1,339, at fair value) | 22,287 | 20,954 | |
Total assets | 353,595 | 332,238 | |
Deposits: | |||
Noninterest-bearing (principally U.S. offices) | 80,380 | 78,342 | |
Interest-bearing deposits in U.S. offices | 46,023 | 52,049 | |
Interest-bearing deposits in non-U.S. offices | 104,593 | 91,099 | |
Total deposits | 230,996 | 221,490 | |
Federal funds purchased and securities sold under repurchase agreements | 10,314 | 9,989 | |
Trading liabilities | 3,253 | 4,389 | |
Payables to customers and broker-dealers | 21,176 | 20,987 | |
Commercial paper | 2,501 | 0 | |
Other borrowed funds | 3,353 | 754 | |
Accrued taxes and other expenses | 6,070 | 5,867 | |
Other liabilities (including allowance for lending-related commitments of $104 and $112, also includes $812 and $597, at fair value) | 7,195 | 5,635 | |
Long-term debt (includes $369 and $363, at fair value) | 28,408 | 24,463 | |
Total liabilities | 313,266 | 293,574 | |
Operating segments | Investment Management funds | |||
Securities: | |||
Assets of consolidated investment management funds, at fair value | 802 | 1,231 | |
Deposits: | |||
Liabilities of consolidated investment management funds, at fair value | $ 27 | $ 315 | |
[1] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $35,269 million at Dec. 31, 2016 and $36,981 million at Sept. 30, 2017. |
Consolidated Balance Sheet (un7
Consolidated Balance Sheet (unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Other liabilities, allowance for lending related commitments | $ 104 | $ 112 |
Long-term debt, fair value | $ 369 | $ 363 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock, issued (shares) | 35,826 | 35,826 |
Common Stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common Stock, authorized (shares) | 3,500,000,000 | 3,500,000,000 |
Common stock, issued (shares) | 1,352,363,932 | 1,333,706,427 |
Treasury stock, common shares (shares) | 328,341,579 | 286,218,126 |
Operating segments | ||
Held-to-maturity, fair value | $ 39,928 | $ 40,669 |
Other assets, fair value | 827 | 1,339 |
Other liabilities, allowance for lending related commitments | 104 | 112 |
Other liabilities, fair value | 812 | 597 |
Long-term debt, fair value | $ 369 | $ 363 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | ||
Net income | $ 2,933 | $ 2,676 |
Net (income) loss attributable to noncontrolling interests | (18) | 1 |
Net income applicable to shareholders of The Bank of New York Mellon Corporation | 2,915 | 2,677 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | (18) | (18) |
Pension plan contributions | (12) | (17) |
Depreciation and amortization | 1,044 | 1,118 |
Deferred tax expense (benefit) | 272 | (282) |
Net securities (gains) | (29) | (65) |
Change in trading assets and liabilities | (66) | 1,680 |
Originations of loans held-for-sale | 0 | (350) |
Proceeds from the sales of loans originated for sale | 0 | 802 |
Change in accruals and other, net | (756) | (3,988) |
Net cash provided by operating activities | 3,350 | 1,557 |
Investing activities | ||
Change in interest-bearing deposits with banks | 507 | 880 |
Change in interest-bearing deposits with the Federal Reserve and other central banks | (14,467) | 33,473 |
Purchases of securities held-to-maturity | (5,878) | (4,169) |
Paydowns of securities held-to-maturity | 3,332 | 3,577 |
Maturities of securities held-to-maturity | 3,412 | 2,933 |
Purchases of securities available-for-sale | (18,974) | (21,491) |
Sales of securities available-for-sale | 3,531 | 5,624 |
Paydowns of securities available-for-sale | 7,047 | 6,552 |
Maturities of securities available-for-sale | 4,820 | 7,610 |
Net change in loans | 5,283 | (2,884) |
Sales of loans and other real estate | 369 | 172 |
Change in federal funds sold and securities purchased under resale agreements | (2,082) | (10,456) |
Net change in seed capital investments | (52) | (57) |
Purchases of premises and equipment/capitalized software | (933) | (495) |
Proceeds from the sale of premises and equipment | 0 | 65 |
Acquisitions, net of cash | 0 | (38) |
Dispositions, net of cash | 0 | 1 |
Other, net | 82 | (239) |
Net cash (used for) provided by investing activities | (14,003) | 21,058 |
Financing activities | ||
Change in deposits | 4,459 | (18,378) |
Change in federal funds purchased and securities sold under repurchase agreements | 325 | (6,950) |
Change in payables to customers and broker-dealers | 177 | (743) |
Change in other borrowed funds | 2,187 | 427 |
Change in commercial paper | 2,501 | 0 |
Net proceeds from the issuance of long-term debt | 4,739 | 4,982 |
Repayments of long-term debt | (796) | (2,453) |
Proceeds from the exercise of stock options | 383 | 129 |
Issuance of common stock | 24 | 20 |
Issuance of preferred stock | 0 | 990 |
Treasury stock acquired | (2,035) | (1,550) |
Common cash dividends paid | (653) | (576) |
Preferred cash dividends paid | (126) | (74) |
Other, net | 46 | (2) |
Net cash provided by (used for) financing activities | 11,231 | (24,178) |
Effect of exchange rate changes on cash | 157 | (17) |
Change in cash and due from banks | ||
Change in cash and due from banks | 735 | (1,580) |
Cash and due from banks at beginning of period | 4,822 | 6,537 |
Cash and due from banks at end of period | 5,557 | 4,957 |
Supplemental disclosures | ||
Interest paid | 721 | 371 |
Income taxes paid | 316 | 597 |
Income taxes refunded | $ 19 | $ 293 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity (unaudited) - 9 months ended Sep. 30, 2017 - USD ($) $ in Millions | Total | Preferred stock | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive (loss) income, net of tax | Treasury stock | Non- redeemable noncontrolling interests of consolidated investment management funds | Redeemable non- controlling interests/ temporary equity | |
Beginning Balance at Dec. 31, 2016 | $ 39,429 | [1] | $ 3,542 | $ 13 | $ 25,962 | $ 22,621 | $ (3,765) | $ (9,562) | $ 618 | $ 151 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares issued to shareholders of noncontrolling interests | 40 | |||||||||
Redemption of subsidiary shares from noncontrolling interests | (16) | |||||||||
Other net changes in noncontrolling interests | (269) | (11) | (258) | 15 | ||||||
Net income (loss) | 2,939 | 2,915 | 24 | (6) | ||||||
Other comprehensive income | 984 | 984 | 13 | |||||||
Dividends: | ||||||||||
Common stock | (653) | (653) | ||||||||
Preferred stock | (126) | (126) | ||||||||
Repurchase of common stock | (2,035) | (2,035) | ||||||||
Common stock issued under: | ||||||||||
Employee benefit plans | 21 | 21 | ||||||||
Direct stock purchase and dividend reinvestment plan | 18 | 18 | ||||||||
Stock awards and options exercised | 599 | 1 | 598 | |||||||
Ending Balance at Sep. 30, 2017 | $ 40,907 | [1] | $ 3,542 | $ 14 | $ 26,588 | $ 24,757 | $ (2,781) | $ (11,597) | $ 384 | $ 197 |
[1] | Includes total The Bank of New York Mellon Corporation common shareholders’ equity of $35,269 million at Dec. 31, 2016 and $36,981 million at Sept. 30, 2017. |
Consolidated Statement of Cha10
Consolidated Statement of Changes in Equity (unaudited) (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
The Bank of New York Mellon Corporation shareholders’ equity | $ 40,523 | $ 38,811 |
Dividends on common stock, cash paid (dollars per share) | $ 0.62 | |
Common stock | ||
The Bank of New York Mellon Corporation shareholders’ equity | $ 36,981 | $ 35,269 |
Basis of presentation
Basis of presentation | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation Basis of presentation The accounting and financial reporting policies of BNY Mellon, a global financial services company, conform to U.S. generally accepted accounting principles (“GAAP”) and prevailing industry practices. The accompanying consolidated financial statements are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the periods presented have been made. These financial statements should be read in conjunction with BNY Mellon’s Annual Report on Form 10-K for the year ended Dec. 31, 2016 . Certain immaterial reclassifications have been made to prior periods to place them on a basis comparable with current period presentation. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates based upon assumptions about future economic and market conditions which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial condition. Amounts subject to estimates are items such as the allowance for loan losses and lending-related commitments, the fair value of financial instruments and derivatives, other-than-temporary impairment, goodwill and other intangibles and pension accounting. Among other effects, such changes in estimates could result in future impairments of investment securities, goodwill and intangible assets and establishment of allowances for loan losses and lending-related commitments as well as changes in pension and post-retirement expense. |
Accounting change and new accou
Accounting change and new accounting guidance | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting change and new accounting guidance | Accounting change and new accounting guidance ASU 2017-04, Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . This ASU simplifies the annual goodwill impairment test by eliminating Step 2. The Step 2 calculation estimated the implied goodwill using the fair values of all assets, including previously unrecorded intangibles, and liabilities at the date of the test. Step 2 was required if the first step of the annual test indicated that the fair value of a reporting unit is less than its carrying value. After adopting this ASU, the amount of any goodwill impairment will be determined by the excess of the carrying value of a reporting unit over its fair value. The Company early adopted this ASU in the second quarter of 2017, in conjunction with its annual goodwill impairment test. The annual test did not result in any impairment. ASU 2016-09, Compensation – Stock Compensation In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation . This ASU simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, recognition of forfeitures and classification on the statement of cash flows. The Company adopted this ASU effective Jan. 1, 2017. For the first nine months of 2017, we recorded an income tax benefit of $45 million related to the vesting of stock awards and option exercises in the provision for income taxes. Previously, this had been recorded directly to additional paid-in capital. The impact in future periods will vary depending on the number of restricted stock units vesting (which primarily occurs in the first quarter of each year), the number of stock options exercised and the change in value since the grant date. We continue to apply our accounting policy election for estimating forfeitures. Additionally, beginning in the quarter ended March 31, 2017, we report excess tax benefits related to stock-based compensation as operating activities on the statement of cash flows and the employee taxes paid will continue to be reported as financing activities. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions We sometimes structure our acquisitions with both an initial payment and later contingent payments tied to post-closing revenue or income growth. Contingent payments totaled $2 million in the third quarter of 2017 and the first nine months of 2017 . At Sept. 30, 2017 , we are potentially obligated to pay additional consideration which, using reasonable assumptions, could range from $0 million to $16 million over the next two years , but could be higher as certain of the arrangements do not contain a contractual maximum. The acquisition described below did not have a material impact on BNY Mellon’s results of operations. Acquisition in 2016 On April 1, 2016 , BNY Mellon acquired the assets of Atherton Lane Advisers, LLC, a U.S.-based investment manager with approximately $2.45 billion in AUM and servicer for approximately 700 high-net-worth clients, for cash of $38 million , plus contingent payments measured at $22 million . Goodwill related to this acquisition totaled $29 million and is included in the Investment Management business. The customer relationship intangible asset related to this acquisition is included in the Investment Management business, with an estimated life of 14 years , and totaled $30 million at acquisition. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2017 | |
Securities [Abstract] | |
Securities | Securities The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of securities at Sept. 30, 2017 and Dec. 31, 2016 . Securities at Sept. 30, 2017 Gross unrealized Amortized cost Fair value (in millions) Gains Losses Available-for-sale: U.S. Treasury $ 15,389 $ 236 $ 123 $ 15,502 U.S. government agencies 866 4 6 864 State and political subdivisions 3,091 57 24 3,124 Agency RMBS 24,546 135 250 24,431 Non-agency RMBS 491 37 3 525 Other RMBS 270 3 8 265 Commercial MBS 960 9 4 965 Agency commercial MBS 9,026 41 57 9,010 CLOs 2,542 9 1 2,550 Other asset-backed securities 1,152 5 — 1,157 Foreign covered bonds 2,529 20 7 2,542 Corporate bonds 1,262 21 8 1,275 Sovereign debt/sovereign guaranteed 12,393 195 23 12,565 Other debt securities 3,149 12 10 3,151 Equity securities 2 2 — 4 Money market funds 939 — — 939 Non-agency RMBS (a) 885 304 4 1,185 Total securities available-for-sale (b) $ 79,492 $ 1,090 $ 528 $ 80,054 Held-to-maturity: U.S. Treasury $ 9,867 $ 21 $ 29 $ 9,859 U.S. government agencies 1,614 — 6 1,608 State and political subdivisions 18 — 1 17 Agency RMBS 25,575 96 185 25,486 Non-agency RMBS 64 5 — 69 Other RMBS 65 — 1 64 Commercial MBS 6 — — 6 Agency commercial MBS 1,118 5 5 1,118 Foreign covered bonds 83 1 — 84 Sovereign debt/sovereign guaranteed 1,558 32 — 1,590 Other debt securities 27 — — 27 Total securities held-to-maturity $ 39,995 $ 160 $ 227 $ 39,928 Total securities $ 119,487 $ 1,250 $ 755 $ 119,982 (a) Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. (b) Includes gross unrealized gains of $53 million and gross unrealized losses of $155 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized gains and losses are primarily related to Agency RMBS and will be amortized into net interest revenue over the contractual lives of the securities. Securities at Dec. 31, 2016 Gross Amortized cost Fair value (in millions) Gains Losses Available-for-sale: U.S. Treasury $ 14,373 $ 115 $ 181 $ 14,307 U.S. government agencies 366 2 9 359 State and political subdivisions 3,392 38 52 3,378 Agency RMBS 22,929 148 341 22,736 Non-agency RMBS 620 31 13 638 Other RMBS 517 4 8 513 Commercial MBS 931 8 11 928 Agency commercial MBS 6,505 28 84 6,449 CLOs 2,593 6 1 2,598 Other asset-backed securities 1,729 4 6 1,727 Foreign covered bonds 2,126 24 9 2,141 Corporate bonds 1,391 22 17 1,396 Sovereign debt/sovereign guaranteed 12,248 261 20 12,489 Other debt securities 1,952 19 10 1,961 Equity securities 2 1 — 3 Money market funds 842 — — 842 Non-agency RMBS (a) 1,080 286 9 1,357 Total securities available-for-sale (b) $ 73,596 $ 997 $ 771 $ 73,822 Held-to-maturity: U.S. Treasury $ 11,117 $ 22 $ 41 $ 11,098 U.S. government agencies 1,589 — 6 1,583 State and political subdivisions 19 — 1 18 Agency RMBS 25,221 57 299 24,979 Non-agency RMBS 78 4 2 80 Other RMBS 142 — 4 138 Commercial MBS 7 — — 7 Agency commercial MBS 721 1 10 712 Foreign covered bonds 74 1 — 75 Sovereign debt/sovereign guaranteed 1,911 42 — 1,953 Other debt securities 26 — — 26 Total securities held-to-maturity $ 40,905 $ 127 $ 363 $ 40,669 Total securities $ 114,501 $ 1,124 $ 1,134 $ 114,491 (a) Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. (b) Includes gross unrealized gains of $62 million and gross unrealized losses of $190 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized gains and losses are primarily related to Agency RMBS and will be amortized into net interest revenue over the contractual lives of the securities. The following table presents the gross securities gains, losses and impairments. Net securities gains (losses) (in millions) 3Q17 2Q17 3Q16 YTD17 YTD16 Realized gross gains $ 20 $ 3 $ 26 $ 34 $ 71 Realized gross losses — (2 ) (1 ) (2 ) (1 ) Recognized gross impairments (1 ) (1 ) (1 ) (3 ) (5 ) Total net securities gains $ 19 $ — $ 24 $ 29 $ 65 In September 2017, other residential mortgage-backed securities with an aggregate amortized cost of $74 million and fair value of $76 million were transferred from held-to-maturity securities to available-for-sale securities. Due to recent ratings downgrades, the Company no longer intends to hold these securities to maturity. Temporarily impaired securities At Sept. 30, 2017 , the unrealized losses on the investment securities portfolio were primarily attributable to an increase in interest rates from date of purchase, and for certain securities that were transferred from available-for-sale to held-to-maturity, an increase in interest rates through the date they were transferred. Specifically, $155 million of the unrealized losses at Sept. 30, 2017 and $190 million at Dec. 31, 2016 reflected in the available-for-sale sections of the tables below relate to certain securities (primarily Agency RMBS) that were transferred in prior periods from available-for-sale to held-to-maturity. The unrealized losses will be amortized into net interest revenue over the contractual lives of the securities. The transfer created a new cost basis for the securities. As a result, if these securities have experienced unrealized losses since the date of transfer, the corresponding fair value and unrealized losses would be reflected in the held-to-maturity sections of the following tables. We do not intend to sell these securities and it is not more likely than not that we will have to sell these securities. The following tables show the aggregate related fair value of investments with a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or more at Sept. 30, 2017 and Dec. 31, 2016 . Temporarily impaired securities at Sept. 30, 2017 Less than 12 months 12 months or more Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale: U.S. Treasury $ 7,900 $ 111 $ 495 $ 12 $ 8,395 $ 123 U.S. government agencies 399 6 — — 399 6 State and political subdivisions 310 4 384 20 694 24 Agency RMBS 8,935 72 4,145 178 13,080 250 Non-agency RMBS 5 — 156 3 161 3 Other RMBS 72 4 83 4 155 8 Commercial MBS 193 2 92 2 285 4 Agency commercial MBS 3,610 47 561 10 4,171 57 CLOs 449 1 — — 449 1 Foreign covered bonds 1,017 7 28 — 1,045 7 Corporate bonds 306 3 144 5 450 8 Sovereign debt/sovereign guaranteed 2,263 20 137 3 2,400 23 Other debt securities 1,347 9 84 1 1,431 10 Non-agency RMBS (a) 8 2 13 2 21 4 Total securities available-for-sale (b) $ 26,814 $ 288 $ 6,322 $ 240 $ 33,136 $ 528 Held-to-maturity: U.S. Treasury $ 7,281 $ 29 $ — $ — $ 7,281 $ 29 U.S. government agencies 1,459 5 99 1 1,558 6 State and political subdivisions — — 4 1 4 1 Agency RMBS 17,125 172 847 13 17,972 185 Other RMBS 15 — 35 1 50 1 Agency commercial MBS 557 5 — — 557 5 Total securities held-to-maturity $ 26,437 $ 211 $ 985 $ 16 $ 27,422 $ 227 Total temporarily impaired securities $ 53,251 $ 499 $ 7,307 $ 256 $ 60,558 $ 755 (a) Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. (b) Gross unrealized losses for 12 months or more of $155 million were recorded in accumulated other comprehensive income and related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized losses are primarily related to Agency RMBS and will be amortized into net interest revenue over the contractual lives of the securities. There were no gross unrealized losses for less than 12 months. Temporarily impaired securities at Dec. 31, 2016 Less than 12 months 12 months or more Total (in millions) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale: U.S. Treasury $ 8,489 $ 181 $ — $ — $ 8,489 $ 181 U.S. government agencies 257 9 — — 257 9 State and political subdivisions 1,058 33 131 19 1,189 52 Agency RMBS 14,766 141 1,673 200 16,439 341 Non-agency RMBS 21 — 332 13 353 13 Other RMBS 26 — 136 8 162 8 Commercial MBS 302 7 163 4 465 11 Agency commercial MBS 3,570 78 589 6 4,159 84 CLOs 443 1 404 — 847 1 Other asset-backed securities 276 1 357 5 633 6 Foreign covered bonds 712 9 — — 712 9 Corporate bonds 594 16 7 1 601 17 Sovereign debt/sovereign guaranteed 1,521 20 63 — 1,584 20 Other debt securities 742 10 50 — 792 10 Non-agency RMBS (a) 25 — 47 9 72 9 Total securities available-for-sale (b) $ 32,802 $ 506 $ 3,952 $ 265 $ 36,754 $ 771 Held-to-maturity: U.S. Treasury $ 6,112 $ 41 $ — $ — $ 6,112 $ 41 U.S. government agencies 1,533 6 — — 1,533 6 State and political subdivisions — — 4 1 4 1 Agency RMBS 19,498 297 102 2 19,600 299 Non-agency RMBS 4 — 48 2 52 2 Other RMBS 15 — 123 4 138 4 Agency commercial MBS 621 10 — — 621 10 Total securities held-to-maturity $ 27,783 $ 354 $ 277 $ 9 $ 28,060 $ 363 Total temporarily impaired securities $ 60,585 $ 860 $ 4,229 $ 274 $ 64,814 $ 1,134 (a) Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. (b) Includes gross unrealized losses for 12 months or more of $190 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized losses are primarily related to Agency RMBS and will be amortized into net interest revenue over the contractual lives of the securities. There were no gross unrealized losses for less than 12 months. The following table shows the maturity distribution by carrying amount and yield (on a tax equivalent basis) of our investment securities portfolio at Sept. 30, 2017 . Maturity distribution and yield on investment securities at Sept. 30, 2017 U.S. Treasury U.S. government agencies State and political subdivisions Other bonds, notes and debentures Mortgage/ asset-backed and equity securities (dollars in millions) Amount Yield (a) Amount Yield (a) Amount Yield (a) Amount Yield (a) Amount Yield (a) Total Securities available-for-sale: One year or less $ 2,223 1.02 % $ — — % $ 438 2.60 % $ 3,852 1.01 % $ — — % $ 6,513 Over 1 through 5 years 5,790 1.66 174 1.29 1,576 3.07 12,648 0.99 — — 20,188 Over 5 through 10 years 4,002 1.90 690 2.46 912 3.34 2,835 0.81 — — 8,439 Over 10 years 3,487 3.11 — — 198 2.36 198 1.64 — — 3,883 Mortgage-backed securities — — — — — — — — 36,381 2.78 36,381 Asset-backed securities — — — — — — — — 3,707 2.32 3,707 Equity securities (b) — — — — — — — — 943 — 943 Total $ 15,502 1.96 % $ 864 2.23 % $ 3,124 3.04 % $ 19,533 0.97 % $ 41,031 2.68 % $ 80,054 Securities held-to-maturity: One year or less $ 4,943 0.97 % $ 731 0.99 % $ — — % $ 700 0.60 % $ — — % $ 6,374 Over 1 through 5 years 3,517 1.67 883 1.38 2 6.88 307 0.59 — — 4,709 Over 5 through 10 years 1,407 1.92 — — 2 6.86 661 0.73 — — 2,070 Over 10 years — — — — 14 5.32 — — — — 14 Mortgage-backed securities — — — — — — — — 26,828 2.80 26,828 Total $ 9,867 1.36 % $ 1,614 1.20 % $ 18 5.64 % $ 1,668 0.65 % $ 26,828 2.80 % $ 39,995 (a) Yields are based upon the amortized cost of securities. (b) Includes money market funds. Other-than-temporary impairment We conduct periodic reviews of all securities to determine whether OTTI has occurred. Such reviews may incorporate the use of economic models. Various inputs to the economic models are used to determine if an unrealized loss on securities is other-than-temporary. For example, the most significant inputs related to non-agency RMBS are: • Default rate - the number of mortgage loans expected to go into default over the life of the transaction, which is driven by the roll rate of loans in each performance bucket that will ultimately migrate to default; and • Severity - the loss expected to be realized when a loan defaults. To determine if an unrealized loss is other-than-temporary, we project total estimated defaults of the underlying assets (mortgages) and multiply that calculated amount by an estimate of realizable value upon sale of these assets in the marketplace (severity) in order to determine the projected collateral loss. In determining estimated default rate and severity assumptions, we review the performance of the underlying securities, industry studies and market forecasts, as well as our view of the economic outlook affecting collateral. We also evaluate the current credit enhancement underlying the bond to determine the impact on cash flows. If we determine that a given security will be subject to a write-down or loss, we record the expected credit loss as a charge to earnings. The table below shows the projected weighted-average default rates and loss severities for the 2007, 2006 and late 2005 non-agency RMBS and the securities previously held in the Grantor Trust that we established in connection with the restructuring of our investment securities portfolio in 2009, at Sept. 30, 2017 and Dec. 31, 2016 . Projected weighted-average default rates and loss severities Sept. 30, 2017 Dec. 31, 2016 Default rate Severity Default rate Severity Alt-A 22 % 54 % 30 % 54 % Subprime 38 % 66 % 49 % 70 % Prime 13 % 39 % 18 % 39 % The following table presents pre-tax net securities gains (losses) by type. Net securities gains (losses) (in millions) 3Q17 2Q17 3Q16 YTD17 YTD16 Agency RMBS $ 4 $ — $ 9 $ 5 $ 22 U.S. Treasury 1 (1 ) (1 ) — 4 Foreign covered bonds — — — — 10 Non-agency RMBS (1 ) — (1 ) (2 ) 1 Other 15 1 17 26 28 Total net securities gains $ 19 $ — $ 24 $ 29 $ 65 The following tables reflect investment securities credit losses recorded in earnings. The beginning balance represents the credit loss component for which OTTI occurred on debt securities in prior periods. The additions represent the first time a debt security was credit impaired or when subsequent credit impairments have occurred. The deductions represent credit losses on securities that have been sold, are required to be sold, or for which it is our intention to sell. Debt securities credit loss roll forward (in millions) 3Q17 3Q16 Beginning balance as of June 30 $ 85 $ 91 Add: Initial OTTI credit losses — — Subsequent OTTI credit losses 1 1 Less: Realized losses for securities sold 2 5 Ending balance as of Sept. 30 $ 84 $ 87 Debt securities credit loss roll forward (in millions) YTD17 YTD16 Beginning balance as of Jan. 1 $ 88 $ 91 Add: Initial OTTI credit losses — — Subsequent OTTI credit losses 3 5 Less: Realized losses for securities sold 7 9 Ending balance as of Sept. 30 $ 84 $ 87 Pledged assets At Sept. 30, 2017 , BNY Mellon had pledged assets of $108 billion , including $87 billion pledged as collateral for potential borrowings at the Federal Reserve Discount Window and $4 billion pledged as collateral for borrowing at the Federal Home Loan Bank. The components of the assets pledged at Sept. 30, 2017 included $92 billion of securities, $13 billion of loans, $2 billion of trading assets and $1 billion of interest-bearing deposits with banks. If there has been no borrowing at the Federal Reserve Discount Window, the Federal Reserve generally allows banks to freely move assets in and out of their pledged assets account to sell or repledge the assets for other purposes. BNY Mellon regularly moves assets in and out of its pledged assets account at the Federal Reserve. At Dec. 31, 2016 , BNY Mellon had pledged assets of $102 billion , including $84 billion pledged as collateral for potential borrowing at the Federal Reserve Discount Window. The components of the assets pledged at Dec. 31, 2016 included $87 billion of securities, $8 billion of loans, $4 billion of interest-bearing deposits with banks and $3 billion of trading assets. At Sept. 30, 2017 and Dec. 31, 2016 , pledged assets included $13 billion and $6 billion , respectively, for which the recipients were permitted to sell or repledge the assets delivered. We also obtain securities as collateral, including receipts under resale agreements, securities borrowed, derivative contracts and custody agreements on terms which permit us to sell or repledge the securities to others. At Sept. 30, 2017 and Dec. 31, 2016 , the market value of the securities received that can be sold or repledged was $68 billion and $50 billion , respectively. We routinely sell or repledge these securities through delivery to third parties. As of Sept. 30, 2017 and Dec. 31, 2016 , the market value of securities collateral sold or repledged was $39 billion and $20 billion , respectively. Restricted cash and securities Cash and securities may also be segregated under federal and other regulations or requirements. At Sept. 30, 2017 and Dec. 31, 2016 , cash segregated under federal and other regulations or requirements was $4 billion and $3 billion , respectively. Restricted cash is included in interest-bearing deposits with banks on the consolidated balance sheet. Securities segregated for these purposes were $2 billion at Sept. 30, 2017 and $2 billion at Dec. 31, 2016 . Restricted securities were sourced from securities purchased under resale agreements at Sept. 30, 2017 and Dec. 31, 2016 and are included in federal funds sold and securities purchased under resale agreements on the consolidated balance sheet. |
Loans and asset quality
Loans and asset quality | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Loans and asset quality | Loans and asset quality Loans The table below provides the details of our loan portfolio and industry concentrations of credit risk at Sept. 30, 2017 and Dec. 31, 2016 . Loans Sept. 30, 2017 Dec. 31, 2016 (in millions) Domestic: Financial institutions $ 5,155 $ 6,342 Commercial 2,698 2,286 Wealth management loans and mortgages 16,161 15,555 Commercial real estate 4,921 4,639 Lease financings 823 989 Other residential mortgages 741 854 Overdrafts 1,487 1,055 Other 1,159 1,202 Margin loans 13,720 17,503 Total domestic 46,865 50,425 Foreign: Financial institutions 6,741 8,347 Commercial 305 331 Wealth management loans and mortgages 104 99 Commercial real estate 6 15 Lease financings 522 736 Other (primarily overdrafts) 4,373 4,418 Margin loans 152 87 Total foreign 12,203 14,033 Total loans (a) $ 59,068 $ 64,458 (a) Net of unearned income of $414 million at Sept. 30, 2017 and $527 million at Dec. 31, 2016 primarily on domestic and foreign lease financings. Our loan portfolio consists of three portfolio segments: commercial, lease financings and mortgages. We manage our portfolio at the class level which consists of six classes of financing receivables: commercial, commercial real estate, financial institutions, lease financings, wealth management loans and mortgages, and other residential mortgages. The following tables are presented for each class of financing receivable and provide additional information about our credit risks and the adequacy of our allowance for credit losses. Allowance for credit losses Transactions in the allowance for credit losses are summarized as follows. Allowance for credit losses activity for the quarter ended Sept. 30, 2017 Wealth management loans and mortgages Other residential mortgages (in millions) Commercial Commercial real estate Financial institutions Lease financings All other Foreign Total Beginning balance $ 80 $ 75 $ 23 $ 10 $ 25 $ 23 $ — $ 34 $ 270 Charge-offs — — — — — — — — — Recoveries — — — — — 1 — — 1 Net recoveries — — — — — 1 — — 1 Provision 1 — — (1 ) (4 ) (3 ) — 1 (6 ) Ending balance $ 81 $ 75 $ 23 $ 9 $ 21 $ 21 $ — $ 35 $ 265 Allowance for: Loan losses $ 26 $ 57 $ 7 $ 9 $ 17 $ 21 $ — $ 24 $ 161 Lending-related commitments 55 18 16 — 4 — — 11 104 Individually evaluated for impairment: Loan balance $ — $ — $ 2 $ — $ 5 $ — $ — $ — $ 7 Allowance for loan losses — — 2 — — — — — 2 Collectively evaluated for impairment: Loan balance $ 2,698 $ 4,921 $ 5,153 $ 823 $ 16,156 $ 741 $ 16,366 (a) $ 12,203 $ 59,061 Allowance for loan losses 26 57 5 9 17 21 — 24 159 (a) Includes $1,487 million of domestic overdrafts, $13,720 million of margin loans and $1,159 million of other loans at Sept. 30, 2017 . Allowance for credit losses activity for the quarter ended June 30, 2017 Wealth management loans and mortgages Other residential mortgages (in millions) Commercial Commercial real estate Financial institutions Lease financings All other Foreign Total Beginning balance $ 82 $ 73 $ 23 $ 10 $ 26 $ 25 $ — $ 37 $ 276 Charge-offs — — — — — — — — — Recoveries — — — — — 1 — — 1 Net recoveries — — — — — 1 — — 1 Provision (2 ) 2 — — (1 ) (3 ) — (3 ) (7 ) Ending balance $ 80 $ 75 $ 23 $ 10 $ 25 $ 23 $ — $ 34 $ 270 Allowance for: Loan losses $ 26 $ 55 $ 7 $ 10 $ 21 $ 23 $ — $ 23 $ 165 Lending-related commitments 54 20 16 — 4 — — 11 105 Individually evaluated for impairment: Loan balance $ — $ — $ 2 $ — $ 7 $ — $ — $ — $ 9 Allowance for loan losses — — 2 — 3 — — — 5 Collectively evaluated for impairment: Loan balance $ 2,580 $ 5,017 $ 5,952 $ 847 $ 16,024 $ 780 $ 15,950 (a) $ 14,514 $ 61,664 Allowance for loan losses 26 55 5 10 18 23 — 23 160 (a) Includes $855 million of domestic overdrafts, $13,973 million of margin loans and $1,122 million of other loans at June 30, 2017 . Allowance for credit losses activity for the quarter ended Sept. 30, 2016 Wealth management loans and mortgages Other residential mortgages All other Foreign Total (in millions) Commercial Commercial real estate Financial institutions Lease financings Beginning balance $ 90 $ 63 $ 29 $ 14 $ 18 $ 29 $ — $ 37 $ 280 Charge-offs — — — — — (1 ) — — (1 ) Recoveries — — 13 — — 1 — — 14 Net recoveries — — 13 — — — — — 13 Provision 1 — (13 ) — — (1 ) — (6 ) (19 ) Ending balance $ 91 $ 63 $ 29 $ 14 $ 18 $ 28 $ — $ 31 $ 274 Allowance for: Loan losses $ 22 $ 45 $ 9 $ 14 $ 14 $ 28 $ — $ 16 $ 148 Lending-related commitments 69 18 20 — 4 — — 15 126 Individually evaluated for impairment: Loan balance $ — $ 1 $ — $ 4 $ 4 $ — $ — $ — $ 9 Allowance for loan losses — 1 — 2 — — — — 3 Collectively evaluated for impairment: Loan balance $ 2,292 $ 4,693 $ 6,783 $ 1,013 $ 15,027 $ 901 $ 20,189 (a) $ 15,061 $ 65,959 Allowance for loan losses 22 44 9 12 14 28 — 16 145 (a) Includes $1,580 million of domestic overdrafts, $17,487 million of margin loans and $1,122 million of other loans at Sept. 30, 2016 . Allowance for credit losses activity for the nine months ended Sept. 30, 2017 Wealth management loans and mortgages Other All Foreign Total (in millions) Commercial Commercial Financial Lease Beginning balance $ 82 $ 73 $ 26 $ 13 $ 23 $ 28 $ — $ 36 $ 281 Charge-offs — — — — — (1 ) — — (1 ) Recoveries — — — — — 3 — — 3 Net recoveries — — — — — 2 — — 2 Provision (1 ) 2 (3 ) (4 ) (2 ) (9 ) — (1 ) (18 ) Ending balance $ 81 $ 75 $ 23 $ 9 $ 21 $ 21 $ — $ 35 $ 265 Allowance for credit losses activity for the nine months ended Sept. 30, 2016 Wealth management loans and mortgages Other All Foreign Total (in millions) Commercial Commercial Financial Lease Beginning balance $ 82 $ 59 $ 31 $ 15 $ 19 $ 34 $ — $ 35 $ 275 Charge-offs — — — — — (1 ) — — (1 ) Recoveries — — 13 — — 4 — 1 18 Net recoveries — — 13 — — 3 — 1 17 Provision 9 4 (15 ) (1 ) (1 ) (9 ) — (5 ) (18 ) Ending balance $ 91 $ 63 $ 29 $ 14 $ 18 $ 28 $ — $ 31 $ 274 Nonperforming assets The table below presents our nonperforming assets. Nonperforming assets (in millions) Sept. 30, 2017 Dec. 31, 2016 Nonperforming loans: Other residential mortgages $ 80 $ 91 Wealth management loans and mortgages 8 8 Financial institutions 2 — Lease financings — 4 Total nonperforming loans 90 103 Other assets owned 4 4 Total nonperforming assets $ 94 $ 107 At Sept. 30, 2017 , undrawn commitments to borrowers whose loans were classified as nonaccrual or reduced rate were not material. Lost interest The table below presents the amount of lost interest income. Lost interest (in millions) 3Q17 2Q17 3Q16 YTD17 YTD16 Amount by which interest income recognized on nonperforming loans exceeded reversals $ — $ — $ — $ — $ — Amount by which interest income would have increased if nonperforming loans at period end had been performing for the entire period $ 1 $ 1 $ 1 $ 4 $ 4 Impaired loans The tables below present information about our impaired loans. We use the discounted cash flow method as the primary method for valuing impaired loans. Impaired loans 3Q17 2Q17 3Q16 YTD17 YTD16 (in millions) Average recorded investment Interest Average recorded investment Interest income recognized Average Interest Average Interest Average Interest Impaired loans with an allowance: Commercial real estate $ — $ — $ — $ — $ 1 $ — $ — $ — $ 1 $ — Financial institutions 2 — 1 — — — 1 — — — Wealth management loans and mortgages 2 — 3 — 3 — 3 — 5 — Lease financings — — — — 4 — 1 — 3 — Total impaired loans with an allowance 4 — 4 — 8 — 5 — 9 — Impaired loans without an allowance : Commercial real estate — — — — 1 — — — 1 — Financial institutions — — — — 85 — — — 128 — Wealth management loans and mortgages 4 — 3 — 3 — 3 — 2 — Total impaired loans without an allowance (a) 4 — 3 — 89 — 3 — 131 — Total impaired loans $ 8 $ — $ 7 $ — $ 97 $ — $ 8 $ — $ 140 $ — (a) When the discounted cash flows, collateral value or market price equals or exceeds the carrying value of the loan, then the loan does not require an allowance under the accounting standard related to impaired loans. Impaired loans Sept. 30, 2017 Dec. 31, 2016 (in millions) Recorded investment Unpaid principal balance Related allowance (a) Recorded investment Unpaid principal balance Related allowance (a) Impaired loans with an allowance: Commercial real estate $ — $ 3 $ — $ — $ 3 $ — Financial institutions 2 2 2 — — — Wealth management loans and mortgages 1 1 — 3 3 3 Lease financings — — — 4 4 2 Total impaired loans with an allowance 3 6 2 7 10 5 Impaired loans without an allowance : Wealth management loans and mortgages 4 4 N/A 2 2 N/A Total impaired loans without an allowance (b) 4 4 N/A 2 2 N/A Total impaired loans (c) $ 7 $ 10 $ 2 $ 9 $ 12 $ 5 (a) The allowance for impaired loans is included in the allowance for loan losses. (b) When the discounted cash flows, collateral value or market price equals or exceeds the carrying value of the loan, then the loan does not require an allowance under the accounting standard related to impaired loans. (c) Excludes an aggregate of less than $1 million of impaired loans in amounts individually less than $1 million at both Sept. 30, 2017 and Dec. 31, 2016 , respectively. The allowance for loan losses associated with these loans totaled less than $1 million at both Sept. 30, 2017 and Dec. 31, 2016 , respectively. Past due loans The table below presents our past due loans. Past due loans and still accruing interest Sept. 30, 2017 Dec. 31, 2016 Days past due Total past due Days past due Total past due (in millions) 30-59 60-89 ≥90 30-59 60-89 ≥90 Commercial real estate $ 51 $ 60 $ — $ 111 $ 78 $ — $ — $ 78 Wealth management loans and mortgages 86 15 1 102 21 2 — 23 Other residential mortgages 20 3 5 28 20 6 7 33 Financial institutions — — — — 1 27 — 28 Total past due loans $ 157 $ 78 $ 6 $ 241 $ 120 $ 35 $ 7 $ 162 Troubled debt restructurings (“TDRs”) A modified loan is considered a TDR if the debtor is experiencing financial difficulties and the creditor grants a concession to the debtor that would not otherwise be considered. A TDR may include a transfer of real estate or other assets from the debtor to the creditor, or a modification of the term of the loan. Not all modified loans are considered TDRs. The following table presents our TDRs. TDRs 3Q17 2Q17 3Q16 Outstanding recorded investment Outstanding recorded investment Outstanding recorded investment (dollars in millions) Number of contracts Pre-modification Post-modification Number of contracts Pre-modification Post-modification Number of contracts Pre-modification Post-modification Other residential mortgages 19 $ 5 $ 5 16 $ 4 $ 4 17 $ 4 $ 4 Wealth management loans and mortgages 1 2 2 — — — — — — Total TDRs 20 $ 7 $ 7 16 $ 4 $ 4 17 $ 4 $ 4 Other residential mortgages The modifications of the other residential mortgage loans in the third quarter of 2017 , second quarter of 2017 and third quarter of 2016 consisted of reducing the stated interest rates and, in certain cases, a forbearance of default and extending the maturity dates. The modified loans are primarily collateral dependent for which the value is based on the fair value of the collateral. TDRs that subsequently defaulted There were three residential mortgage loans that had been restructured in a TDR during the previous 12 months and have subsequently defaulted in the third quarter of 2017 . The total recorded investment of these loans was less than $1 million . Credit quality indicators Our credit strategy is to focus on investment grade clients that are active users of our non-credit services. Each customer is assigned an internal credit rating, which is mapped to an external rating agency grade equivalent, if possible, based upon a number of dimensions, which are continually evaluated and may change over time. The following tables present information about credit quality indicators. Commercial loan portfolio Commercial loan portfolio – Credit risk profile by creditworthiness category Commercial Commercial real estate Financial institutions Sept. 30, 2017 Dec. 31, 2016 Sept. 30, 2017 Dec. 31, 2016 Sept. 30, 2017 Dec. 31, 2016 (in millions) Investment grade $ 2,857 $ 2,397 $ 4,339 $ 3,823 $ 9,217 $ 11,459 Non-investment grade 146 220 588 831 2,679 3,230 Total $ 3,003 $ 2,617 $ 4,927 $ 4,654 $ 11,896 $ 14,689 The commercial loan portfolio is divided into investment grade and non-investment grade categories based on rating criteria largely consistent with those of the public rating agencies. Each customer in the portfolio is assigned an internal credit rating. These internal credit ratings are generally consistent with the ratings categories of the public rating agencies. Customers with ratings consistent with BBB- (S&P)/Baa3 (Moody’s) or better are considered to be investment grade. Those clients with ratings lower than this threshold are considered to be non-investment grade. Wealth management loans and mortgages Wealth management loans and mortgages – Credit risk profile by internally assigned grade (in millions) Sept. 30, 2017 Dec. 31, 2016 Wealth management loans: Investment grade $ 7,128 $ 7,127 Non-investment grade 135 260 Wealth management mortgages 9,002 8,267 Total $ 16,265 $ 15,654 Wealth management non-mortgage loans are not typically rated by external rating agencies. A majority of the wealth management loans are secured by the customers’ investment management accounts or custody accounts. Eligible assets pledged for these loans are typically investment grade fixed-income securities, equities and/or mutual funds. Internal ratings for this portion of the wealth management portfolio, therefore, would equate to investment grade external ratings. Wealth management loans are provided to select customers based on the pledge of other types of assets, including business assets, fixed assets or a modest amount of commercial real estate. For the loans collateralized by other assets, the credit quality of the obligor is carefully analyzed, but we do not consider this portfolio of loans to be investment grade. Credit quality indicators for wealth management mortgages are not correlated to external ratings. Wealth management mortgages are typically loans to high-net-worth individuals, which are secured primarily by residential property. These loans are primarily interest-only, adjustable rate mortgages with a weighted-average loan-to-value ratio of 62% at origination. In the wealth management portfolio, less than 1% of the mortgages were past due at Sept. 30, 2017 . At Sept. 30, 2017 , the wealth management mortgage portfolio consisted of the following geographic concentrations: California - 24% ; New York - 19% ; Massachusetts - 11% ; Florida - 8% ; and other - 38% . Other residential mortgages The other residential mortgage portfolio primarily consists of 1-4 family residential mortgage loans and totaled $ 741 million at Sept. 30, 2017 and $854 million at Dec. 31, 2016 . These loans are not typically correlated to external ratings. Included in this portfolio at Sept. 30, 2017 are $181 million of mortgage loans purchased in 2005, 2006 and the first quarter of 2007 that are predominantly prime mortgage loans, with a small portion of Alt-A loans. As of Sept. 30, 2017 , the purchased loans in this portfolio had a weighted-average loan-to-value ratio of 76% at origination and 11% of the serviced loan balance was at least 60 days delinquent. The properties securing the prime and Alt-A mortgage loans were located (in order of concentration) in California, Florida, Virginia, the tri-state area (New York, New Jersey and Connecticut) and Maryland. Overdrafts Overdrafts primarily relate to custody and securities clearance clients and totaled $5.8 billion at Sept. 30, 2017 and $5.5 billion at Dec. 31, 2016 . Overdrafts occur on a daily basis in the custody and securities clearance business and are generally repaid within two business days. Other loans Other loans primarily include loans to consumers that are fully collateralized with equities, mutual funds and fixed income securities. Margin loans We had $13.9 billion of secured margin loans on our balance sheet at Sept. 30, 2017 compared with $17.6 billion at Dec. 31, 2016 . Margin loans are collateralized with marketable securities, and borrowers are required to maintain a daily collateral margin in excess of 100% of the value of the loan. We have rarely suffered a loss on these types of loans and do not allocate any of our allowance for credit losses to margin loans. Reverse repurchase agreements Reverse repurchase agreements are transactions fully collateralized with high-quality liquid securities. These transactions carry minimal credit risk and therefore are not allocated an allowance for credit losses. |
Goodwill and intangible assets
Goodwill and intangible assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill The tables below provide a breakdown of goodwill by business. Goodwill by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2016 $ 9,000 $ 8,269 $ 47 $ 17,316 Foreign currency translation 120 107 — 227 Balance at Sept. 30, 2017 $ 9,120 $ 8,376 $ 47 $ 17,543 Goodwill by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2015 $ 9,207 $ 8,366 $ 45 $ 17,618 Acquisitions 29 (1 ) — 28 Foreign currency translation (167 ) (30 ) — (197 ) Other (a) 2 (4 ) 2 — Balance at Sept. 30, 2016 $ 9,071 $ 8,331 $ 47 $ 17,449 (a) Other changes in goodwill include purchase price adjustments and certain other reclassifications. Intangible assets The tables below provide a breakdown of intangible assets by business. Intangible assets – net carrying amount by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2016 $ 1,717 $ 1,032 $ 849 $ 3,598 Amortization (45 ) (112 ) — (157 ) Foreign currency translation 16 4 — 20 Balance at Sept. 30, 2017 $ 1,688 $ 924 $ 849 $ 3,461 Intangible assets – net carrying amount by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2015 $ 1,807 $ 1,186 $ 849 $ 3,842 Acquisitions 30 2 — 32 Amortization (60 ) (117 ) — (177 ) Foreign currency translation (27 ) 1 — (26 ) Balance at Sept. 30, 2016 $ 1,750 $ 1,072 $ 849 $ 3,671 The table below provides a breakdown of intangible assets by type. Intangible assets Sept. 30, 2017 Dec. 31, 2016 (in millions) Gross carrying amount Accumulated amortization Net carrying amount Remaining weighted- average amortization period Gross Accumulated Net carrying amount Subject to amortization: (a) Customer relationships—Investment Management $ 1,483 $ (1,221 ) $ 262 11 years $ 1,439 $ (1,136 ) $ 303 Customer contracts—Investment Services 2,257 (1,705 ) 552 10 years 2,249 (1,590 ) 659 Other 25 (22 ) 3 2 years 37 (33 ) 4 Total subject to amortization 3,765 (2,948 ) 817 10 years 3,725 (2,759 ) 966 Not subject to amortization: (b) Trade name 1,350 N/A 1,350 N/A 1,348 N/A 1,348 Customer relationships 1,294 N/A 1,294 N/A 1,284 N/A 1,284 Total not subject to amortization 2,644 N/A 2,644 N/A 2,632 N/A 2,632 Total intangible assets $ 6,409 $ (2,948 ) $ 3,461 N/A $ 6,357 $ (2,759 ) $ 3,598 (a) Excludes fully amortized intangible assets. (b) Intangible assets not subject to amortization have an indefinite life. Estimated annual amortization expense for current intangibles for the next five years is as follows: For the year ended Estimated amortization expense (in millions) 2017 $ 209 2018 180 2019 109 2020 98 2021 75 Impairment testing The goodwill impairment test is performed at least annually at the reporting unit level. Intangible assets not subject to amortization are tested for impairment annually or more often if events or circumstances indicate they may be impaired. BNY Mellon’s three business segments include eight reporting units for which goodwill impairment testing is performed on an annual basis. In the second quarter of 2017, BNY Mellon conducted an annual goodwill impairment test on all eight reporting units. As a result of the annual goodwill impairment test of the eight reporting units, no goodwill impairment was recognized. |
Other assets
Other assets | 9 Months Ended |
Sep. 30, 2017 | |
Other Assets [Abstract] | |
Other assets | Other assets The following table provides the components of other assets presented on the balance sheet. Other assets Sept. 30, 2017 Dec. 31, 2016 (in millions) Corporate/bank-owned life insurance $ 4,824 $ 4,789 Accounts receivable 3,899 4,060 Fails to deliver 3,532 1,732 Software 1,513 1,451 Renewable energy investments 1,344 1,282 Equity in a joint venture and other investments 1,153 1,063 Income taxes receivable 1,020 1,172 Qualified affordable housing project investments 988 914 Prepaid pension assets 951 836 Prepaid expenses 512 438 Federal Reserve Bank stock 474 466 Fair value of hedging derivatives 344 784 Due from customers on acceptances 318 340 Seed capital 302 395 Other (a) 1,113 1,232 Total other assets $ 22,287 $ 20,954 (a) At Sept. 30, 2017 , other assets include $76 million of Federal Home Loan Bank stock, at cost. Qualified affordable housing project investments We invest in affordable housing projects primarily to satisfy the Company’s requirements under the Community Reinvestment Act. Our total investment in qualified affordable housing projects totaled $988 million at Sept. 30, 2017 and $914 million at Dec. 31, 2016 . Commitments to fund future investments in qualified affordable housing projects totaled $439 million at Sept. 30, 2017 and $369 million at Dec. 31, 2016 . A summary of the commitments to fund future investments is as follows: 2017 – $75 million ; 2018 – $161 million ; 2019 – $107 million ; 2020 – $79 million ; 2021 – $1 million ; and 2022 and thereafter – $16 million . Tax credits and other tax benefits recognized were $39 million in the third quarter of 2017 , $39 million in the third quarter of 2016 , $38 million in the second quarter of 2017 , $115 million in the first nine months of 2017 and $115 million in the first nine months of 2016 . Amortization expense included in the provision for income taxes was $29 million in the third quarter of 2017 , $30 million in the third quarter of 2016 , $28 million in the second quarter of 2017 , $84 million in the first nine months of 2017 and $86 million in the first nine months of 2016 . Certain seed capital and private equity investments valued using net asset value per share In our Investment Management business, we manage investment assets, including equities, fixed income, money market and alternative investment funds for institutions and other investors. As part of that activity, we make seed capital investments in certain funds. BNY Mellon also holds private equity investments, specifically in small business investment companies (“SBICs”), which are compliant with the Volcker Rule. Seed capital and private equity investments are generally included in other assets. Certain risk retention investments in our CLOs are classified as available-for-sale securities. The fair value of certain of these investments has been estimated using the NAV per share of BNY Mellon’s ownership interest in the funds. The table below presents information about our investments in seed capital and private equity investments that have been valued using NAV. Seed capital and private equity investments valued using NAV Sept. 30, 2017 Dec. 31, 2016 (dollar amounts in millions) Fair value Unfunded commitments Redemption frequency Redemption notice period Fair value Unfunded commitments Redemption frequency Redemption notice period Seed capital and other funds (a) $ 97 $ 2 Daily-quarterly 1-95 days $ 171 $ 1 Daily-quarterly 1-180 days Private equity investments (SBICs) (b) 54 47 N/A N/A 43 46 N/A N/A Total $ 151 $ 49 $ 214 $ 47 (a) Other funds include various leveraged loans, hedge funds and structured credit funds. Redemption notice periods vary by fund. (b) Private equity investments primarily include Volcker Rule-compliant investments in SBICs that invest in various sectors of the economy. Private equity investments do not have redemption rights. Distributions from such investments will be received as the underlying investments in the private equity investments are liquidated. |
Net interest revenue
Net interest revenue | 9 Months Ended |
Sep. 30, 2017 | |
Interest Revenue (Expense), Net [Abstract] | |
Net interest revenue | Net interest revenue The following table provides the components of net interest revenue presented on the consolidated income statement. Net interest revenue Quarter ended Year-to-date Sept. 30, 2017 June 30, 2017 Sept. 30, 2016 Sept. 30, 2017 Sept. 30, 2016 (in millions) Interest revenue Non-margin loans $ 283 $ 272 $ 218 $ 800 $ 637 Margin loans 87 87 67 249 194 Securities: Taxable 510 476 434 1,447 1,307 Exempt from federal income taxes 16 16 17 49 53 Total securities 526 492 451 1,496 1,360 Deposits with banks 34 27 26 83 76 Deposits with the Federal Reserve and other central banks 89 71 37 217 170 Federal funds sold and securities purchased under resale agreements 119 86 62 272 167 Trading assets 13 17 13 46 43 Total interest revenue 1,151 1,052 874 3,163 2,647 Interest expense Deposits 57 32 (6 ) 98 21 Federal funds purchased and securities sold under repurchase agreements 70 38 6 132 28 Trading liabilities 2 2 2 6 5 Other borrowed funds 7 4 1 13 5 Commercial paper 8 5 1 18 5 Customer payables 19 16 3 42 9 Long-term debt 149 129 93 397 267 Total interest expense 312 226 100 706 340 Net interest revenue 839 826 774 2,457 2,307 Provision for credit losses (6 ) (7 ) (19 ) (18 ) (18 ) Net interest revenue after provision for credit losses $ 845 $ 833 $ 793 $ 2,475 $ 2,325 |
Employee benefit plans
Employee benefit plans | 9 Months Ended |
Sep. 30, 2017 | |
Defined Benefit Plan [Abstract] | |
Employee benefit plans | Employee benefit plans The components of net periodic benefit (credit) cost are as follows. Net periodic benefit (credit) cost Quarter ended Sept. 30, 2017 June 30, 2017 Sept. 30, 2016 (in millions) Domestic pension benefits Foreign pension benefits Health care benefits Domestic pension benefits Foreign pension benefits Health care benefits Domestic pension benefits Foreign pension benefits Health care benefits Service cost $ — $ 7 $ — $ — $ 7 $ — $ — $ 8 $ 1 Interest cost 45 8 2 45 8 2 45 9 2 Expected return on assets (81 ) (12 ) (2 ) (81 ) (12 ) (2 ) (82 ) (13 ) (2 ) Other 17 9 (1 ) 17 9 (1 ) 17 4 (1 ) Net periodic benefit (credit) cost $ (19 ) $ 12 $ (1 ) $ (19 ) $ 12 $ (1 ) $ (20 ) $ 8 $ — Net periodic benefit (credit) cost Year-to-date Sept. 30, 2017 Sept. 30, 2016 (in millions) Domestic pension benefits Foreign pension benefits Health care benefits Domestic pension benefits Foreign pension benefits Health care benefits Service cost $ — $ 21 $ — $ — $ 24 $ 3 Interest cost 135 24 6 135 27 6 Expected return on assets (243 ) (36 ) (6 ) (246 ) (39 ) (6 ) Other 51 27 (3 ) 52 13 (3 ) Net periodic benefit (credit) cost $ (57 ) $ 36 $ (3 ) $ (59 ) $ 25 $ — |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes BNY Mellon recorded an income tax provision of $ 348 million ( 25.4% effective tax rate) in the third quarter of 2017 . The income tax provision was $324 million ( 24.6% effective tax rate) in the third quarter of 2016 and $332 million ( 25.4% effective tax rate) in the second quarter of 2017 . Our total tax reserves as of Sept. 30, 2017 were $157 million compared with $143 million at June 30, 2017 . If these tax reserves were unnecessary, $157 million would affect the effective tax rate in future periods. We recognize accrued interest and penalties, if applicable, related to income taxes in income tax expense. Included in the balance sheet at Sept. 30, 2017 is accrued interest, where applicable, of $24 million . The additional tax expense related to interest for the nine months ended Sept. 30, 2017 was $7 million , compared with $2 million for the nine months ended Sept. 30, 2016 . It is reasonably possible the total reserve for uncertain tax positions could decrease within the next 12 months by approximately $57 million as a result of adjustments related to tax years that are still subject to examination. Our federal income tax returns are closed to examination through 2013. Our New York State, New York City and UK income tax returns are closed to examination through 2012. |
Variable interest entities and
Variable interest entities and securitization | 9 Months Ended |
Sep. 30, 2017 | |
Securitizations And Variable Interest Entities Disclosure [Abstract] | |
Variable interest entities and securitization | Variable interest entities and securitization BNY Mellon has variable interests in VIEs, which include investments in retail, institutional and alternative investment funds, including collateralized loan obligation (“CLO”) structures in which we provide asset management services, some of which are consolidated. The investment funds are offered to our retail and institutional clients to provide them with access to investment vehicles with specific investment objectives and strategies that address the client’s investment needs. BNY Mellon earns management fees from these funds as well as performance fees in certain funds and may also provide start-up capital for its new funds. The funds are primarily financed by our customers’ investments in the funds’ equity or debt. Additionally, BNY Mellon invests in qualified affordable housing and renewable energy projects, which are designed to generate a return primarily through the realization of tax credits by the Company. The projects, which are structured as limited partnerships and LLCs, are also VIEs, but are not consolidated. The VIEs discussed above are included in the scope of ASU 2015-02, which was adopted effective Jan. 1, 2015, and are reviewed for consolidation based on the guidance in ASC 810, Consolidation . We reconsider and reassess whether or not we are the primary beneficiary of a VIE when governing documents or contractual arrangements are changed that would reallocate the obligation to absorb expected losses or receive expected residual returns between BNY Mellon and the other investors. This could occur when BNY Mellon disposes of its variable interests in the fund, when additional variable interests are issued to other investors or when we acquire additional variable interests in the VIE. The following tables present the incremental assets and liabilities included in BNY Mellon’s consolidated financial statements, after applying intercompany eliminations, as of Sept. 30, 2017 and Dec. 31, 2016 . The net assets of any consolidated VIE are solely available to settle the liabilities of the VIE and to settle any investors’ ownership liquidation requests, including any seed capital invested in the VIE by BNY Mellon. Investments consolidated at Sept. 30, 2017 (in millions) Investment Management funds Securitization Total consolidated investments Securities - Available-for-sale $ — $ 400 $ 400 Trading assets 576 — 576 Other assets 226 — 226 Total assets $ 802 (a) $ 400 $ 1,202 Other liabilities $ 27 $ 369 $ 396 Total liabilities $ 27 (a) $ 369 $ 396 Nonredeemable noncontrolling interests $ 384 (a) $ — $ 384 (a) Includes voting model entities (“VMEs”) with assets of $90 million , liabilities of $2 million and nonredeemable noncontrolling interests of $20 million . Investments consolidated at Dec. 31, 2016 (in millions) Investment Management funds Securitization Total consolidated investments Securities - Available-for-sale $ — $ 400 $ 400 Trading assets 979 — 979 Other assets 252 — 252 Total assets $ 1,231 (a) $ 400 $ 1,631 Trading liabilities $ 282 $ — $ 282 Other liabilities 33 363 396 Total liabilities $ 315 (a) $ 363 $ 678 Nonredeemable noncontrolling interests $ 618 (a) $ — $ 618 (a) Includes VMEs with assets of $114 million , liabilities of $3 million and nonredeemable noncontrolling interests of $25 million . BNY Mellon has not provided financial or other support that was not otherwise contractually required to be provided to our VIEs. Additionally, creditors of any consolidated VIEs do not have any recourse to the general credit of BNY Mellon. Non-consolidated VIEs As of Sept. 30, 2017 and Dec. 31, 2016 , the following assets and liabilities related to the VIEs where BNY Mellon is not the primary beneficiary are included in our consolidated financial statements and primarily relate to accounting for our investments in qualified affordable housing and renewable energy projects. Non-consolidated VIEs at Sept. 30, 2017 (in millions) Assets Liabilities Maximum loss exposure Securities - Available-for-sale (a) $ 143 $ — $ 143 Other 2,559 439 3,321 (a) Investments in the Company’s sponsored CLOs. Non-consolidated VIEs at Dec. 31, 2016 (in millions) Assets Liabilities Maximum loss exposure Securities - Available-for-sale (a) $ 42 $ — $ 42 Other 2,400 369 2,769 (a) Investments in the Company’s sponsored CLOs. The maximum loss exposure indicated in the above tables relates solely to BNY Mellon’s investments in, and unfunded commitments to, the VIEs. |
Preferred stock
Preferred stock | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Preferred stock | Preferred stock BNY Mellon has 100 million authorized shares of preferred stock with a par value of $0.01 per share. The following table summarizes BNY Mellon’s preferred stock issued and outstanding at Sept. 30, 2017 and Dec. 31, 2016 . Preferred stock summary (a) Total shares issued and outstanding Carrying value (b) (in millions) Per annum dividend rate Sept. 30, 2017 Dec. 31, 2016 Sept. 30, 2017 Dec. 31, 2016 Series A Greater of (i) three-month LIBOR plus 0.565% for the related distribution period; or (ii) 4.000% 5,001 5,001 $ 500 $ 500 Series C 5.2% 5,825 5,825 568 568 Series D 4.50% to but excluding June 20, 2023, then a floating rate equal to the three-month LIBOR plus 2.46% 5,000 5,000 494 494 Series E 4.95% to and including June 20, 2020, then a floating rate equal to the three-month LIBOR plus 3.42% 10,000 10,000 990 990 Series F 4.625% to and including Sept. 20, 2026, then a floating rate equal to the three-month LIBOR plus 3.131% 10,000 10,000 990 990 Total 35,826 35,826 $ 3,542 $ 3,542 (a) All outstanding preferred stock is noncumulative perpetual preferred stock with a liquidation preference of $100,000 per share. (b) The carrying value of the Series C, Series D, Series E and Series F preferred stock is recorded net of issuance costs. On Sept. 20, 2017, The Bank of New York Mellon Corporation paid the following dividends for the noncumulative perpetual preferred stock for the dividend period ending in September 2017 to holders of record as of the close of business on Sept. 5, 2017: • $1,022.22 per share on the Series A Preferred Stock (equivalent to $10.2222 per Normal Preferred Capital Security of Mellon Capital IV, each representing a 1/100th interest in a share of the Series A Preferred Stock); • $1,300.00 per share on the Series C Preferred Stock (equivalent to $0.3250 per depositary share, each representing a 1/4,000th interest in a share of the Series C Preferred Stock); and • $2,312.50 per share on the Series F Preferred Stock (equivalent to $23.1250 per depositary share, each representing a 1/100th interest in a share of the Series F Preferred Stock). For additional information on the preferred stock, see Note 13 of the Notes to Consolidated Financial Statements in our 2016 Annual Report. Terms of the Series A, Series C, Series D, Series E and Series F preferred stock are more fully described in each of their Certificates of Designations, each of which is filed as an Exhibit to this Form 10-Q. |
Other comprehensive income (los
Other comprehensive income (loss) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Other comprehensive income (loss) | Other comprehensive income (loss) Components of other comprehensive income (loss) Quarter ended Sept. 30, 2017 June 30, 2017 Sept. 30, 2016 (in millions) Pre-tax amount Tax (expense) benefit After-tax amount Pre-tax amount Tax (expense) benefit After-tax amount Pre-tax amount Tax (expense) benefit After-tax amount Foreign currency translation: Foreign currency translation adjustments arising during the period (a) $ 221 $ 65 $ 286 $ 249 $ 81 $ 330 $ (104 ) $ (82 ) $ (186 ) Total foreign currency translation 221 65 286 249 81 330 (104 ) (82 ) (186 ) Unrealized gain (loss) on assets available-for-sale: Unrealized gain (loss) arising during period 47 (19 ) 28 146 (55 ) 91 (87 ) 34 (53 ) Reclassification adjustment (b) (19 ) 7 (12 ) — (1 ) (1 ) (24 ) 9 (15 ) Net unrealized gain (loss) on assets available-for-sale 28 (12 ) 16 146 (56 ) 90 (111 ) 43 (68 ) Defined benefit plans: Net gain (loss) arising during the period — — — — — — — — — Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost (b) 25 (10 ) 15 24 (8 ) 16 22 (8 ) 14 Total defined benefit plans 25 (10 ) 15 24 (8 ) 16 22 (8 ) 14 Unrealized gain (loss) on cash flow hedges: Unrealized hedge gain (loss) arising during period (2 ) — (2 ) (8 ) 4 (4 ) (24 ) 7 (17 ) Reclassification adjustment (b) 3 (1 ) 2 9 (4 ) 5 28 (9 ) 19 Net unrealized gain (loss) on cash flow hedges 1 (1 ) — 1 — 1 4 (2 ) 2 Total other comprehensive income (loss) $ 275 $ 42 $ 317 $ 420 $ 17 $ 437 $ (189 ) $ (49 ) $ (238 ) (a) Includes the impact of hedges of net investments in foreign subsidiaries. See Note 16 for additional information. (b) The reclassification adjustment related to the unrealized gain (loss) on assets available-for-sale is recorded as net securities gains on the Consolidated Income Statement. The amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost is recorded as staff expense on the Consolidated Income Statement. See Note 16 of the Notes to Consolidated Financial Statements for the location of the reclassification adjustment related to cash flow hedges on the Consolidated Income Statement. Components of other comprehensive income (loss) Year-to-date Sept. 30, 2017 Sept. 30, 2016 (in millions) Pre-tax amount Tax (expense) benefit After-tax amount Pre-tax amount Tax (expense) benefit After-tax amount Foreign currency translation: Foreign currency translation adjustments arising during the period (a) $ 566 $ 175 $ 741 $ (223 ) $ (210 ) $ (433 ) Total foreign currency translation 566 175 741 (223 ) (210 ) (433 ) Unrealized gain (loss) on assets available-for-sale: Unrealized gain (loss) arising during period 357 (144 ) 213 338 (111 ) 227 Reclassification adjustment (b) (29 ) 10 (19 ) (65 ) 22 (43 ) Net unrealized gain (loss) on assets available-for-sale 328 (134 ) 194 273 (89 ) 184 Defined benefit plans: Net gain (loss) arising during the period 3 (1 ) 2 3 (1 ) 2 Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost (b) 74 (25 ) 49 65 (22 ) 43 Total defined benefit plans 77 (26 ) 51 68 (23 ) 45 Unrealized gain (loss) on cash flow hedges: Unrealized hedge gain (loss) arising during period 4 (1 ) 3 (115 ) 38 (77 ) Reclassification adjustment (b) 13 (5 ) 8 110 (37 ) 73 Net unrealized gain (loss) on cash flow hedges 17 (6 ) 11 (5 ) 1 (4 ) Total other comprehensive income (loss) $ 988 $ 9 $ 997 $ 113 $ (321 ) $ (208 ) (a) Includes the impact of hedges of net investments in foreign subsidiaries. See Note 16 for additional information. (b) The reclassification adjustment related to the unrealized gain (loss) on assets available-for-sale is recorded as net securities gains on the Consolidated Income Statement. The amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost is recorded as staff expense on the Consolidated Income Statement. See Note 16 of the Notes to Consolidated Financial Statements for the location of the reclassification adjustment related to cash flow hedges on the Consolidated Income Statement. |
Fair value measurement
Fair value measurement | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement | Fair value measurement Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. A three-level hierarchy for fair value measurements is utilized based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. BNY Mellon’s own creditworthiness is considered when valuing liabilities. See Note 18 of the Notes to Consolidated Financial Statements in our 2016 Annual Report for information on how we determine fair value and the fair value hierarchy. The following tables present the financial instruments carried at fair value at Sept. 30, 2017 and Dec. 31, 2016 , by caption on the consolidated balance sheet and by the three-level valuation hierarchy. We have included credit ratings information in certain of the tables because the information indicates the degree of credit risk to which we are exposed, and significant changes in ratings classifications could result in increased risk for us. There were no material transfers between Level 1 and Level 2 during the third quarter of 2017 . Assets measured at fair value on a recurring basis at Sept. 30, 2017 Total carrying (dollar amounts in millions) Level 1 Level 2 Level 3 Netting (a) Available-for-sale securities: U.S. Treasury $ 15,502 $ — $ — $ — $ 15,502 U.S. government agencies — 864 — — 864 Sovereign debt/sovereign guaranteed 74 12,491 — — 12,565 State and political subdivisions — 3,124 — — 3,124 Agency RMBS — 24,431 — — 24,431 Non-agency RMBS — 525 — — 525 Other RMBS — 265 — — 265 Commercial MBS — 965 — — 965 Agency commercial MBS — 9,010 — — 9,010 CLOs — 2,550 — — 2,550 Other asset-backed securities — 1,157 — — 1,157 Equity securities 4 — — — 4 Money market funds (b) 939 — — — 939 Corporate bonds — 1,275 — — 1,275 Other debt securities — 3,151 — — 3,151 Foreign covered bonds 2,284 258 — — 2,542 Non-agency RMBS (c) — 1,185 — — 1,185 Total available-for-sale securities 18,803 61,251 — — 80,054 Trading assets: Debt and equity instruments (b) 433 1,016 — — 1,449 Derivative assets not designated as hedging: Interest rate 3 6,731 — (5,301 ) 1,433 Foreign exchange — 4,879 — (3,120 ) 1,759 Equity and other contracts 1 73 — (49 ) 25 Total derivative assets not designated as hedging 4 11,683 — (8,470 ) 3,217 Total trading assets 437 12,699 — (8,470 ) 4,666 Other assets: Derivative assets designated as hedging: Interest rate — 307 — — 307 Foreign exchange — 37 — — 37 Total derivative assets designated as hedging — 344 — — 344 Other assets (d) 148 184 — — 332 Other assets measured at net asset value (d) 151 Total other assets 148 528 — — 827 Subtotal assets of operations at fair value 19,388 74,478 — (8,470 ) 85,547 Percentage of assets of operations prior to netting 21 % 79 % — % Assets of consolidated investment management funds 398 404 — — 802 Total assets $ 19,786 $ 74,882 $ — $ (8,470 ) $ 86,349 Percentage of total assets prior to netting 21 % 79 % — % Liabilities measured at fair value on a recurring basis at Sept. 30, 2017 Total carrying (dollar amounts in millions) Level 1 Level 2 Level 3 Netting (a) Trading liabilities: Debt and equity instruments $ 684 $ 159 $ — $ — $ 843 Derivative liabilities not designated as hedging: Interest rate 3 6,681 — (5,705 ) 979 Foreign exchange — 4,463 — (3,095 ) 1,368 Equity and other contracts 3 135 — (75 ) 63 Total derivative liabilities not designated as hedging 6 11,279 — (8,875 ) 2,410 Total trading liabilities 690 11,438 — (8,875 ) 3,253 Long-term debt (b) — 369 — — 369 Other liabilities – derivative liabilities designated as hedging: Interest rate — 494 — — 494 Foreign exchange — 318 — — 318 Total other liabilities – derivative liabilities designated as hedging — 812 — — 812 Subtotal liabilities of operations at fair value 690 12,619 — (8,875 ) 4,434 Percentage of liabilities of operations prior to netting 5 % 95 % — % Liabilities of consolidated investment management funds 2 25 — — 27 Total liabilities $ 692 $ 12,644 $ — $ (8,875 ) $ 4,461 Percentage of total liabilities prior to netting 5 % 95 % — % (a) ASC 815, Derivatives and Hedging, permits the netting of derivative receivables and derivative payables under legally enforceable master netting agreements and permits the netting of cash collateral. Netting is applicable to derivatives not designated as hedging instruments included in trading assets or trading liabilities, and derivatives designated as hedging instruments included in other assets or other liabilities. Netting is allocated to the derivative products based on the net fair value of each product. (b) Includes certain interests in securitizations. (c) Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. (d) Includes private equity investments and seed capital. Assets measured at fair value on a recurring basis at Dec. 31, 2016 Total carrying value (dollar amounts in millions) Level 1 Level 2 Level 3 Netting (a) Available-for-sale securities: U.S. Treasury $ 14,307 $ — $ — $ — $ 14,307 U.S. government agencies — 359 — — 359 Sovereign debt/sovereign guaranteed 66 12,423 — — 12,489 State and political subdivisions — 3,378 — — 3,378 Agency RMBS — 22,736 — — 22,736 Non-agency RMBS — 638 — — 638 Other RMBS — 513 — — 513 Commercial MBS — 928 — — 928 Agency commercial MBS — 6,449 — — 6,449 CLOs — 2,598 — — 2,598 Other asset-backed securities — 1,727 — — 1,727 Equity securities 3 — — — 3 Money market funds (b) 842 — — — 842 Corporate bonds — 1,396 — — 1,396 Other debt securities — 1,961 — — 1,961 Foreign covered bonds 1,876 265 — — 2,141 Non-agency RMBS (c) — 1,357 — — 1,357 Total available-for-sale securities 17,094 56,728 — — 73,822 Trading assets: Debt and equity instruments (b) 240 2,013 — — 2,253 Derivative assets not designated as hedging: Interest rate 4 7,583 — (6,047 ) 1,540 Foreign exchange — 6,104 — (4,172 ) 1,932 Equity and other contracts — 46 — (38 ) 8 Total derivative assets not designated as hedging 4 13,733 — (10,257 ) 3,480 Total trading assets 244 15,746 — (10,257 ) 5,733 Other assets : Derivative assets designated as hedging: Interest rate — 415 — — 415 Foreign exchange — 369 — — 369 Total derivative assets designated as hedging — 784 — — 784 Other assets (d) 268 73 — — 341 Other assets measured at net asset value (d) 214 Total other assets 268 857 — — 1,339 Subtotal assets of operations at fair value 17,606 73,331 — (10,257 ) 80,894 Percentage of assets of operations prior to netting 19 % 81 % — % Assets of consolidated investment management funds 464 767 — — 1,231 Total assets $ 18,070 $ 74,098 $ — $ (10,257 ) $ 82,125 Percentage of total assets prior to netting 20 % 80 % — % Liabilities measured at fair value on a recurring basis at Dec. 31, 2016 Total carrying value (dollar amounts in millions) Level 1 Level 2 Level 3 Netting (a) Trading liabilities: Debt and equity instruments $ 349 $ 236 $ — $ — $ 585 Derivative liabilities not designated as hedging: Interest rate 4 7,629 — (6,634 ) 999 Foreign exchange — 6,103 — (3,363 ) 2,740 Equity and other contracts — 115 — (50 ) 65 Total derivative liabilities not designated as hedging 4 13,847 — (10,047 ) 3,804 Total trading liabilities 353 14,083 — (10,047 ) 4,389 Long-term debt ( b ) — 363 — — 363 Other liabilities – derivative liabilities designated as hedging: Interest rate — 545 — — 545 Foreign exchange — 52 — — 52 Total other liabilities – derivative liabilities designated as hedging — 597 — — 597 Subtotal liabilities of operations at fair value 353 15,043 — (10,047 ) 5,349 Percentage of liabilities of operations prior to netting 2 % 98 % — % Liabilities of consolidated investment management funds 3 312 — — 315 Total liabilities $ 356 $ 15,355 $ — $ (10,047 ) $ 5,664 Percentage of total liabilities prior to netting 2 % 98 % — % (a) ASC 815, Derivatives and Hedging, permits the netting of derivative receivables and derivative payables under legally enforceable master netting agreements and permits the netting of cash collateral. Netting is applicable to derivatives not designated as hedging instruments included in trading assets or trading liabilities, and derivatives designated as hedging instruments included in other assets or other liabilities. Netting is allocated to the derivative products based on the net fair value of each product. (b) Includes certain interests in securitizations. (c) Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. (d) Includes private equity investments and seed capital. Details of certain items measured at fair value on a recurring basis Sept. 30, 2017 Dec. 31, 2016 Total carrying value (b) Ratings (a) Total carrying value (b) Ratings (a) AAA/ AA- A+/ A- BBB+/ BBB- BB+ and lower AAA/ AA- A+/ A- BBB+/ BBB- BB+ and lower (dollar amounts in millions) Non-agency RMBS, originated in: 2007 $ 42 — % — % — % 100 % $ 58 — % — % — % 100 % 2006 85 — — — 100 98 — — — 100 2005 152 20 3 18 59 180 23 5 9 63 2004 and earlier 246 4 2 27 67 302 5 3 24 68 Total non-agency RMBS $ 525 8 % 2 % 14 % 76 % $ 638 9 % 3 % 14 % 74 % Commercial MBS - Domestic, originated in: 2009-2017 $ 909 89 % 11 % — % — % $ 674 84 % 16 % — % — % 2008 5 100 — — — 14 100 — — — 2007 — — — — — 190 71 29 — — 2006 — — — — — 3 7 93 — — Total commercial MBS - Domestic $ 914 89 % 11 % — % — % $ 881 81 % 19 % — % — % Foreign covered bonds: Canada $ 1,648 100 % — % — % — % $ 1,320 100 % — % — % — % Australia 261 100 — — — 40 100 — — — Netherlands 177 100 — — — 160 100 — — — United Kingdom 136 100 — — — 280 100 — — — Other 320 100 — — — 341 100 — — — Total foreign covered bonds $ 2,542 100 % — % — % — % $ 2,141 100 % — % — % — % European floating rate notes - available-for-sale: United Kingdom $ 204 87 % 13 % — % — % $ 379 90 % 10 % — % — % Netherlands 113 37 63 — — 125 100 — — — Ireland — — — — — 58 — — 100 — Total European floating rate notes - available-for-sale $ 317 69 % 31 % — % — % $ 562 83 % 7 % 10 % — % Sovereign debt/sovereign guaranteed: United Kingdom $ 3,036 100 % — % — % — % $ 3,209 100 % — % — % — % France 1,993 100 — — — 1,998 100 — — — Spain 1,740 — — 100 — 1,749 — — 100 — Germany 1,688 100 — — — 1,347 100 — — — Italy 1,169 — — 100 — 1,130 — — 100 — Netherlands 1,016 100 — — — 1,061 100 — — — Ireland 832 — 100 — — 736 — 100 — — Belgium 809 100 — — — 1,005 100 — — — Other (c) 282 48 3 — 49 254 71 — — 29 Total sovereign debt/sovereign guaranteed $ 12,565 69 % 7 % 23 % 1 % $ 12,489 70 % 6 % 23 % 1 % Non-agency RMBS (d) , originated in: 2007 $ 337 — % — % — % 100 % $ 387 — % — % — % 100 % 2006 345 — — — 100 391 — — — 100 2005 387 1 1 1 97 437 — 2 1 97 2004 and earlier 116 2 2 22 74 142 2 2 17 79 Total non-agency RMBS (d) $ 1,185 — % 1 % 3 % 96 % $ 1,357 — % 1 % 2 % 97 % (a) Represents ratings by S&P, or the equivalent. (b) At Sept. 30, 2017 and Dec. 31, 2016 , foreign covered bonds and sovereign debt/sovereign guaranteed securities were included in Level 1 and Level 2 in the valuation hierarchy. All other assets in the table are Level 2 assets in the valuation hierarchy. (c) Includes noninvestment grade sovereign debt/sovereign guaranteed securities related to Brazil of $140 million at Sept. 30, 2017 and $73 million at Dec. 31, 2016 . (d) Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. Changes in Level 3 fair value measurements Our classification of a financial instrument in Level 3 of the valuation hierarchy is based on the significance of the unobservable factors to the overall fair value measurement. However, these instruments generally include other observable components that are actively quoted or validated to third-party sources; accordingly, the gains and losses in the table below include changes in fair value due to observable parameters as well as the unobservable parameters in our valuation methodologies. We also manage the risks of Level 3 financial instruments using securities and derivatives positions that are Level 1 or Level 2 instruments which are not included in the table; accordingly, the gains or losses below do not reflect the effect of our risk management activities related to the Level 3 instruments. The Company has a Level 3 Pricing Committee which evaluates the valuation techniques used in determining the fair value of Level 3 assets and liabilities. There were no financial instruments recorded at fair value on a recurring basis classified in Level 3 of the valuation hierarchy in the first nine months of 2017. The table below includes a roll forward of the balance sheet amount for the three and nine months ended Sept. 30, 2016 (including the change in fair value), for financial instruments classified in Level 3 of the valuation hierarchy. Fair value measurements for assets using significant unobservable inputs Loans (in millions) 3Q16 YTD16 Fair value at the beginning of the period $ 101 $ — Transfers into Level 3 — 19 Total gains for the period included in earnings (a) — 2 Purchases and sales: Purchases — 113 Issuances 1 1 Sales (102 ) (135 ) Fair value at Sept. 30, 2016 $ — $ — Change in unrealized gains for the period included in earnings for assets held at the end of the reporting period $ — $ — (a) Reported in investment and other income. Assets and liabilities measured at fair value on a nonrecurring basis Under certain circumstances, we make adjustments to fair value our assets, liabilities and unfunded lending-related commitments although they are not measured at fair value on an ongoing basis. An example would be the recording of an impairment of an asset. The following tables present the financial instruments carried on the consolidated balance sheet by caption and by level in the fair value hierarchy as of Sept. 30, 2017 and Dec. 31, 2016 , for which a nonrecurring change in fair value has been recorded during the quarters ended Sept. 30, 2017 and Dec. 31, 2016 . Assets measured at fair value on a nonrecurring basis at Sept. 30, 2017 Total carrying value (in millions) Level 1 Level 2 Level 3 Loans (a) $ — $ 75 $ 7 $ 82 Other assets (b) — 4 — 4 Total assets at fair value on a nonrecurring basis $ — $ 79 $ 7 $ 86 Assets measured at fair value on a nonrecurring basis at Dec. 31, 2016 Total carrying value (in millions) Level 1 Level 2 Level 3 Loans (a) $ — $ 84 $ 7 $ 91 Other assets (b) — 4 — 4 Total assets at fair value on a nonrecurring basis $ — $ 88 $ 7 $ 95 (a) During the quarters ended Sept. 30, 2017 and Dec. 31, 2016 , the fair value of these loans decreased less than $1 million and $1 million , respectively, based on the fair value of the underlying collateral based on guidance in ASC 310, Receivables, with an offset to the allowance for credit losses. (b) Includes other assets received in satisfaction of debt. Estimated fair value of financial instruments The following tables present the estimated fair value and the carrying amount of financial instruments not carried at fair value on the consolidated balance sheet at Sept. 30, 2017 and Dec. 31, 2016 , by caption on the consolidated balance sheet and by the valuation hierarchy. See Note 18 of the Notes to Consolidated Financial Statements in our 2016 Annual Report for additional information regarding the financial instruments within the scope of this disclosure, and the methods and significant assumptions used to estimate their fair value. Summary of financial instruments Sept. 30, 2017 (in millions) Level 1 Level 2 Level 3 Total estimated fair value Carrying amount Assets: Interest-bearing deposits with the Federal Reserve and other central banks $ — $ 75,808 $ — $ 75,808 $ 75,808 Interest-bearing deposits with banks — 15,254 — 15,254 15,256 Federal funds sold and securities purchased under resale agreements — 27,883 — 27,883 27,883 Securities held-to-maturity 9,943 29,985 — 39,928 39,995 Loans (a) — 57,709 — 57,709 57,562 Other financial assets 5,557 1,169 — 6,726 6,726 Total $ 15,500 $ 207,808 $ — $ 223,308 $ 223,230 Liabilities: Noninterest-bearing deposits $ — $ 80,380 $ — $ 80,380 $ 80,380 Interest-bearing deposits — 148,967 — 148,967 150,616 Federal funds purchased and securities sold under repurchase agreements — 10,314 — 10,314 10,314 Payables to customers and broker-dealers — 21,176 — 21,176 21,176 Commercial paper — 2,501 — 2,501 2,501 Borrowings — 3,544 — 3,544 3,544 Long-term debt — 28,335 — 28,335 28,039 Total $ — $ 295,217 $ — $ 295,217 $ 296,570 (a) Does not include the leasing portfolio. Summary of financial instruments Dec. 31, 2016 (in millions) Level 1 Level 2 Level 3 Total estimated Carrying Assets: Interest-bearing deposits with the Federal Reserve and other central banks $ — $ 58,041 $ — $ 58,041 $ 58,041 Interest-bearing deposits with banks — 15,091 — 15,091 15,086 Federal funds sold and securities purchased under resale agreements — 25,801 — 25,801 25,801 Securities held-to-maturity 11,173 29,496 — 40,669 40,905 Loans (a) — 62,829 — 62,829 62,564 Other financial assets 4,822 1,112 — 5,934 5,934 Total $ 15,995 $ 192,370 $ — $ 208,365 $ 208,331 Liabilities: Noninterest-bearing deposits $ — $ 78,342 $ — $ 78,342 $ 78,342 Interest-bearing deposits — 141,418 — 141,418 143,148 Federal funds purchased and securities sold under repurchase agreements — 9,989 — 9,989 9,989 Payables to customers and broker-dealers — 20,987 — 20,987 20,987 Borrowings — 960 — 960 960 Long-term debt — 24,184 — 24,184 24,100 Total $ — $ 275,880 $ — $ 275,880 $ 277,526 (a) Does not include the leasing portfolio. The table below summarizes the carrying amount of the hedged financial instruments, the notional amount of the hedge and the unrealized gain (loss) (estimated fair value) of the derivatives. Hedged financial instruments Carrying amount Notional amount of hedge Unrealized (in millions) Gain (Loss) Sept. 30, 2017 Securities available-for-sale $ 12,416 $ 12,333 $ 56 $ (337 ) Long-term debt 24,249 24,200 249 (157 ) Dec. 31, 2016 Securities available-for-sale $ 9,184 $ 9,233 $ 83 $ (342 ) Long-term debt 20,511 20,450 330 (203 ) |
Fair value option
Fair value option | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value option | Fair value option We elected fair value as an alternative measurement for selected financial assets and financial liabilities. The following table presents the assets and liabilities, by type, of consolidated investment management funds recorded at fair value. Assets and liabilities of consolidated investment management funds, at fair value Sept. 30, 2017 Dec. 31, 2016 (in millions) Assets of consolidated investment management funds: Trading assets $ 576 $ 979 Other assets 226 252 Total assets of consolidated investment management funds $ 802 $ 1,231 Liabilities of consolidated investment management funds: Trading liabilities $ — $ 282 Other liabilities 27 33 Total liabilities of consolidated investment management funds $ 27 $ 315 BNY Mellon values the assets and liabilities of its consolidated investment management funds using quoted prices for identical assets or liabilities in active markets or observable inputs such as quoted prices for similar assets or liabilities. Quoted prices for either identical or similar assets or liabilities in inactive markets may also be used. Accordingly, fair value best reflects the interests BNY Mellon holds in the economic performance of the consolidated investment management funds. Changes in the value of the assets and liabilities are recorded in the income statement as investment income of consolidated investment management funds and in the interest of investment management fund note holders, respectively. We have elected the fair value option on $240 million of long-term debt. The fair value of this long-term debt was $369 million at Sept. 30, 2017 and $363 million at Dec. 31, 2016 . The long-term debt is valued using observable market inputs and is included in Level 2 of the valuation hierarchy. The following table presents the changes in fair value of long-term debt and certain loans for which we elected the fair value option that we previously held in 2016, and the location of the changes in the income statement. Impact of changes in fair value in the income statement (a) (in millions) 3Q17 2Q17 3Q16 YTD17 YTD16 Loans: Investment and other income $ — $ — $ (1 ) $ — $ 13 Long-term debt: Foreign exchange and other trading revenue $ (1 ) $ (4 ) $ 2 $ (6 ) $ (17 ) (a) The changes in fair value of the loans and long-term debt are approximately offset by economic hedges included in foreign exchange and other trading revenue. |
Derivative instruments
Derivative instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative instruments | Derivative instruments We use derivatives to manage exposure to market risk, including interest rate risk, equity price risk and foreign currency risk, as well as credit risk. Our trading activities are focused on acting as a market-maker for our customers and facilitating customer trades in compliance with the Volcker Rule. The notional amounts for derivative financial instruments express the dollar volume of the transactions; however, credit risk is much smaller. We perform credit reviews and enter into netting agreements and collateral arrangements to minimize the credit risk of derivative financial instruments. We enter into offsetting positions to reduce exposure to foreign currency, interest rate and equity price risk. Use of derivative financial instruments involves reliance on counterparties. Failure of a counterparty to honor its obligation under a derivative contract is a risk we assume whenever we engage in a derivative contract. There were no counterparty default losses recorded in the third quarter of 2017 or the third quarter of 2016 . Hedging derivatives We utilize interest rate swap agreements to manage our exposure to interest rate fluctuations. For hedges of available-for-sale investment securities, deposits and long-term debt, the hedge documentation specifies the terms of the hedged items and the interest rate swaps and indicates that the derivative is hedging a fixed rate item and is a fair value hedge, that the hedge exposure is to the changes in the fair value of the hedged item due to changes in benchmark interest rates, and that the strategy is to eliminate fair value variability by converting fixed rate interest payments to LIBOR. The available-for-sale investment securities hedged consist of U.S. Treasury bonds, agency commercial MBS, sovereign debt and covered bonds that had original maturities of 30 years or less at initial purchase. The swaps on all of these investment securities are not callable. All of these securities are hedged with “pay fixed rate, receive variable rate” swaps of similar maturity, repricing and fixed rate coupon. At Sept. 30, 2017 , $12.4 billion face amount of securities were hedged with interest rate swaps that had notional values of $12.3 billion . The fixed rate long-term debt instruments hedged generally have original maturities of five to 30 years. We issue both callable and non-callable debt. The non-callable debt is hedged with “receive fixed rate, pay variable rate” swaps with similar maturity, repricing and fixed rate coupon. Callable debt is hedged with callable swaps where the call dates of the swaps exactly match the call dates of the debt. At Sept. 30, 2017 , $24.2 billion par value of debt was hedged with interest rate swaps that had notional values of $24.2 billion . In addition, we enter into foreign exchange hedges. We use forward foreign exchange contracts with maturities of nine months or less to hedge our Indian rupee, British pound, Hong Kong dollar, Singapore dollar, Polish zloty, Canadian dollar and Japanese yen foreign exchange exposure with respect to foreign currency forecasted revenue and expense transactions in entities that have the U.S. dollar as their functional currency. As of Sept. 30, 2017 , the hedged forecasted foreign currency transactions and designated forward foreign exchange contract hedges were $539 million (notional), with a pre-tax loss of $9 million recorded in accumulated other comprehensive income. This loss will be reclassified to income or expense over the next nine months. Forward foreign exchange contracts are also used to hedge the value of our net investments in foreign subsidiaries. These forward foreign exchange contracts have maturities of less than two years. The derivatives employed are designated as hedges of changes in value of our foreign investments due to exchange rates. Changes in the value of the forward foreign exchange contracts offset the changes in value of the foreign investments due to changes in foreign exchange rates. The change in fair market value of these forward foreign exchange contracts is deferred and reported within foreign currency translation adjustments in shareholders’ equity, net of tax. At Sept. 30, 2017 , forward foreign exchange contracts with notional amounts totaling $7.8 billion were designated as hedges. In addition to forward foreign exchange contracts, we also designate non-derivative financial instruments as hedges of our net investments in foreign subsidiaries. Those non-derivative financial instruments designated as hedges of our net investments in foreign subsidiaries were all long-term liabilities of BNY Mellon in various currencies, and, at Sept. 30, 2017 , had a combined U.S. dollar equivalent value of $181 million . Ineffectiveness related to derivatives and hedging relationships was recorded in income as follows: Ineffectiveness Nine months ended (in millions) Sept. 30, 2017 Sept. 30, 2016 Fair value hedges of securities $ (13.3 ) $ (5.4 ) Fair value hedges of long-term debt 0.1 (23.0 ) Cash flow hedges — — Other (a) — — Total $ (13.2 ) $ (28.4 ) (a) Includes ineffectiveness recorded on foreign exchange hedges. The following table summarizes the notional amount and credit exposure of our total derivative portfolio at Sept. 30, 2017 and Dec. 31, 2016 . Impact of derivative instruments on the balance sheet Notional value Asset derivatives fair value Liability derivatives fair value (in millions) Sept. 30, 2017 Dec. 31, 2016 Sept. 30, 2017 Dec. 31, 2016 Sept. 30, 2017 Dec. 31, 2016 Derivatives designated as hedging instruments: (a) Interest rate contracts $ 36,533 $ 29,683 $ 307 $ 415 $ 494 $ 545 Foreign exchange contracts 8,399 7,796 37 369 318 52 Total derivatives designated as hedging instruments $ 344 $ 784 $ 812 $ 597 Derivatives not designated as hedging instruments: (b) Interest rate contracts $ 283,384 $ 325,412 $ 6,734 $ 7,587 $ 6,684 $ 7,633 Foreign exchange contracts 639,336 530,729 4,879 6,104 4,463 6,103 Equity contracts 1,354 1,167 74 46 134 112 Credit contracts 180 160 — — 4 3 Total derivatives not designated as hedging instruments $ 11,687 $ 13,737 $ 11,285 $ 13,851 Total derivatives fair value (c) $ 12,031 $ 14,521 $ 12,097 $ 14,448 Effect of master netting agreements (d) (8,470 ) (10,257 ) (8,875 ) (10,047 ) Fair value after effect of master netting agreements $ 3,561 $ 4,264 $ 3,222 $ 4,401 (a) The fair value of asset derivatives and liability derivatives designated as hedging instruments is recorded as other assets and other liabilities, respectively, on the balance sheet. (b) The fair value of asset derivatives and liability derivatives not designated as hedging instruments is recorded as trading assets and trading liabilities, respectively, on the balance sheet. (c) Fair values are on a gross basis, before consideration of master netting agreements, as required by ASC 815, Derivatives and Hedging. (d) Effect of master netting agreements includes cash collateral received and paid of $834 million and $1,239 million , respectively, at Sept. 30, 2017 , and $1,119 million and $909 million , respectively, at Dec. 31, 2016 . The following tables present the impact of derivative instruments used in fair value, cash flow and net investment hedging relationships in the income statement. Impact of derivative instruments in the income statement (in millions) Derivatives in fair value hedging relationships Location of gain or (loss) recognized in income on derivatives Gain or (loss) recognized in income on derivatives Location of gain or (loss) recognized in income on hedged item Gain or (loss) recognized in hedged item 3Q17 2Q17 3Q16 3Q17 2Q17 3Q16 Interest rate contracts Net interest revenue $ (33 ) $ 2 $ (174 ) Net interest revenue $ 31 $ (9 ) $ 168 Derivatives in cash flow hedging relationships Gain or (loss) recognized in accumulated OCI on derivatives (effective portion) Location of gain or (loss) reclassified from accumulated OCI into income (effective portion) Gain or (loss) reclassified from accumulated OCI into income (effective portion) Location of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) 3Q17 2Q17 3Q16 3Q17 2Q17 3Q16 3Q17 2Q17 3Q16 FX contracts $ — $ — $ (7 ) Net interest revenue $ — $ — $ (6 ) Net interest revenue $ — $ — $ — FX contracts 3 (1 ) — Other revenue — — — Other revenue — — — FX contracts (1 ) — (19 ) Trading revenue (1 ) — (19 ) Trading revenue — — — FX contracts (4 ) (7 ) 2 Salary expense (2 ) (9 ) (3 ) Salary expense — — — Total $ (2 ) $ (8 ) $ (24 ) $ (3 ) $ (9 ) $ (28 ) $ — $ — $ — Derivatives in net investment hedging relationships Gain or (loss) recognized in accumulated OCI on derivatives (effective portion) Location of gain or (loss) reclassified from accumulated OCI into income (effective portion) Gain or (loss) reclassified from accumulated OCI into income (effective portion) Location of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) 3Q17 2Q17 3Q16 3Q17 2Q17 3Q16 3Q17 2Q17 3Q16 FX contracts $ (206 ) $ (274 ) $ 47 Net interest revenue $ — $ — $ — Other revenue $ — $ — $ — Impact of derivative instruments in the income statement (in millions) Derivatives in fair value hedging relationships Location of gain or (loss) recognized in income on derivatives Gain or (loss) recognized in income on derivatives Location of gain or (loss) recognized in income on hedged item Gain or (loss) recognized in hedged item YTD17 YTD16 YTD17 YTD16 Interest rate contracts Net interest revenue $ (21 ) $ (445 ) Net interest revenue $ 8 $ 417 Derivatives in cash flow hedging relationships Gain or (loss) recognized in accumulated OCI on derivatives (effective portion) Location of gain or (loss) reclassified from accumulated OCI into income (effective portion) Gain or (loss) reclassified from accumulated OCI into income (effective portion) Location of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) YTD17 YTD16 YTD17 YTD16 YTD17 YTD16 FX contracts $ — $ (16 ) Net interest revenue $ — $ (16 ) Net interest revenue $ — $ — FX contracts 2 — Other revenue — — Other revenue — — FX contracts 2 (89 ) Trading revenue 2 (89 ) Trading revenue — — FX contracts — (10 ) Salary expense (15 ) (5 ) Salary expense — — Total $ 4 $ (115 ) $ (13 ) $ (110 ) $ — $ — Derivatives in net investment hedging relationships Gain or (loss) recognized in accumulated OCI on derivatives (effective portion) Location of gain or (loss) reclassified from accumulated OCI into income (effective portion) Gain or (loss) reclassified from accumulated OCI into income (effective portion) Location of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) YTD17 YTD16 YTD17 YTD16 YTD17 YTD16 FX contracts $ (576 ) $ 320 Net interest revenue $ — $ — Other revenue $ — $ — Trading activities (including trading derivatives) We manage trading risk through a system of position limits, a VaR methodology based on historical simulation and other market sensitivity measures. Risk is monitored and reported to senior management by a separate unit, independent from trading, on a daily basis. Based on certain assumptions, the VaR methodology is designed to capture the potential overnight pre-tax dollar loss from adverse changes in fair values of all trading positions. The calculation assumes a one -day holding period, utilizes a 99% confidence level and incorporates non-linear product characteristics. The VaR model is one of several statistical models used to develop economic capital results, which are allocated to lines of business for computing risk-adjusted performance. As the VaR methodology does not evaluate risk attributable to extraordinary financial, economic or other occurrences, the risk assessment process includes a number of stress scenarios based upon the risk factors in the portfolio and management’s assessment of market conditions. Additional stress scenarios based upon historical market events are also performed. Stress tests may incorporate the impact of reduced market liquidity and the breakdown of historically observed correlations and extreme scenarios. VaR and other statistical measures, stress testing and sensitivity analysis are incorporated in other risk management materials. The following table presents our foreign exchange and other trading revenue. Foreign exchange and other trading revenue (in millions) 3Q17 2Q17 3Q16 YTD17 YTD16 Foreign exchange $ 158 $ 151 $ 175 $ 463 $ 512 Other trading revenue 15 14 8 39 28 Total foreign exchange and other trading revenue $ 173 $ 165 $ 183 $ 502 $ 540 Foreign exchange revenue includes income from purchasing and selling foreign currencies and currency forwards, futures and options. Other trading revenue reflects results from futures and forward contracts, interest rate swaps, structured foreign currency swaps, options, equity derivatives and fixed income and equity securities. Counterparty credit risk and collateral We assess credit risk of our counterparties through regular examination of their financial statements, confidential communication with the management of those counterparties and regular monitoring of publicly available credit rating information. This and other information is used to develop proprietary credit rating metrics used to assess credit quality. Collateral requirements are determined after a comprehensive review of the credit quality of each counterparty. Collateral is generally held or pledged in the form of cash or highly liquid government securities. Collateral requirements are monitored and adjusted daily. Additional disclosures concerning derivative financial instruments are provided in Note 14 of the Notes to Consolidated Financial Statements. Disclosure of contingent features in OTC derivative instruments Certain OTC derivative contracts and/or collateral agreements of The Bank of New York Mellon, our largest banking subsidiary and the subsidiary through which BNY Mellon enters into the substantial majority of its OTC derivative contracts and/or collateral agreements, contain provisions that may require us to take certain actions if The Bank of New York Mellon’s public debt rating fell to a certain level. Early termination provisions, or “close-out” agreements, in those contracts could trigger immediate payment of outstanding contracts that are in net liability positions. Certain collateral agreements would require The Bank of New York Mellon to immediately post additional collateral to cover some or all of The Bank of New York Mellon’s liabilities to a counterparty. The following table shows the fair value of contracts falling under early termination provisions that were in net liability positions as of Sept. 30, 2017 for three key ratings triggers. If The Bank of New York Mellon’s rating was changed to (Moody’s/S&P) Potential close-out exposures (fair value) (a) A3/A- $ 92 million Baa2/BBB $ 430 million Ba1/BB+ $ 1,899 million (a) The amounts represent potential total close-out values if The Bank of New York Mellon’s rating were to immediately drop to the indicated levels. The aggregated fair value of contracts impacting potential trade close-out amounts and collateral obligations can fluctuate from quarter to quarter due to changes in market conditions, changes in the composition of counterparty trades, new business or changes to the agreement definitions establishing close-out or collateral obligations. Additionally, if The Bank of New York Mellon’s debt rating had fallen below investment grade on Sept. 30, 2017 , existing collateral arrangements would have required us to post an additional $151 million of collateral. Offsetting assets and liabilities The following tables present derivative instruments and financial instruments that are either subject to an enforceable netting agreement or offset by collateral arrangements. There were no derivative instruments or financial instruments subject to a legally enforceable netting agreement for which we are not currently netting. Offsetting of derivative assets and financial assets at Sept. 30, 2017 Gross assets recognized Gross amounts offset in the balance sheet Net assets recognized on the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral received Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 6,182 $ 5,301 $ 881 $ 189 $ — $ 692 Foreign exchange contracts 4,281 3,120 1,161 82 — 1,079 Equity and other contracts 69 49 20 — — 20 Total derivatives subject to netting arrangements 10,532 8,470 2,062 271 — 1,791 Total derivatives not subject to netting arrangements 1,499 — 1,499 — — 1,499 Total derivatives 12,031 8,470 3,561 271 — 3,290 Reverse repurchase agreements 36,118 19,171 (b) 16,947 16,890 — 57 Securities borrowing 10,936 — 10,936 10,627 — 309 Total $ 59,085 $ 27,641 $ 31,444 $ 27,788 $ — $ 3,656 (a) Includes the effect of netting agreements and net cash collateral received. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions. (b) Offsetting of reverse repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. Offsetting of derivative assets and financial assets at Dec. 31, 2016 Gross assets recognized Gross amounts offset in the balance sheet Net assets recognized on the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral received Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 7,205 $ 6,047 $ 1,158 $ 321 $ — $ 837 Foreign exchange contracts 5,265 4,172 1,093 202 — 891 Equity and other contracts 44 38 6 — — 6 Total derivatives subject to netting arrangements 12,514 10,257 2,257 523 — 1,734 Total derivatives not subject to netting arrangements 2,007 — 2,007 — — 2,007 Total derivatives 14,521 10,257 4,264 523 — 3,741 Reverse repurchase agreements 17,588 481 (b) 17,107 17,104 — 3 Securities borrowing 8,694 — 8,694 8,425 — 269 Total $ 40,803 $ 10,738 $ 30,065 $ 26,052 $ — $ 4,013 (a) Includes the effect of netting agreements and net cash collateral received. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions. (b) Offsetting of reverse repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. Offsetting of derivative liabilities and financial liabilities at Sept. 30, 2017 Net liabilities recognized on the balance sheet Gross liabilities recognized Gross amounts offset in the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral pledged Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 7,103 $ 5,705 $ 1,398 $ 1,311 $ — $ 87 Foreign exchange contracts 4,074 3,095 979 234 — 745 Equity and other contracts 130 75 55 49 — 6 Total derivatives subject to netting arrangements 11,307 8,875 2,432 1,594 — 838 Total derivatives not subject to netting arrangements 790 — 790 — — 790 Total derivatives 12,097 8,875 3,222 1,594 — 1,628 Repurchase agreements 27,321 19,171 (b) 8,150 8,149 — 1 Securities lending 1,904 — 1,904 1,812 — 92 Total $ 41,322 $ 28,046 $ 13,276 $ 11,555 $ — $ 1,721 (a) Includes the effect of netting agreements and net cash collateral paid. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions. (b) Offsetting of repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. Offsetting of derivative liabilities and financial liabilities at Dec. 31, 2016 Net liabilities recognized on the balance sheet Gross liabilities recognized Gross amounts offset in the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral pledged Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 8,116 $ 6,634 $ 1,482 $ 1,266 $ — $ 216 Foreign exchange contracts 4,957 3,363 1,594 355 — 1,239 Equity and other contracts 104 50 54 54 — — Total derivatives subject to netting arrangements 13,177 10,047 3,130 1,675 — 1,455 Total derivatives not subject to netting arrangements 1,271 — 1,271 — — 1,271 Total derivatives 14,448 10,047 4,401 1,675 — 2,726 Repurchase agreements 8,703 481 (b) 8,222 8,222 — — Securities lending 1,615 — 1,615 1,522 — 93 Total $ 24,766 $ 10,528 $ 14,238 $ 11,419 $ — $ 2,819 (a) Includes the effect of netting agreements and net cash collateral paid. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions. (b) Offsetting of repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. Secured borrowings The following tables present the contract value of repurchase agreements and securities lending transactions accounted for as secured borrowings by the type of collateral provided to counterparties. Repurchase agreements and securities lending transactions accounted for as secured borrowings at Sept. 30, 2017 Remaining contractual maturity of the agreements (in millions) Overnight and continuous Up to 30 days 30 days or more Total Repurchase agreements: U.S. Treasury $ 21,432 $ — $ — $ 21,432 U.S. government agencies 489 110 — 599 Agency RMBS 1,798 190 — 1,988 Corporate bonds 282 — 940 1,222 Other debt securities 254 — 871 1,125 Equity securities 466 — 489 955 Total $ 24,721 $ 300 $ 2,300 $ 27,321 Securities lending: U.S. government agencies $ 15 $ — $ — $ 15 Other debt securities 477 — — 477 Equity securities 1,412 — — 1,412 Total $ 1,904 $ — $ — $ 1,904 Total borrowings $ 26,625 $ 300 $ 2,300 $ 29,225 Repurchase agreements and securities lending transactions accounted for as secured borrowings at Dec. 31, 2016 Remaining contractual maturity of the agreements (in millions) Overnight and continuous Up to 30 days 30 days or more Total Repurchase agreements: U.S. Treasury $ 2,488 $ 4 $ — $ 2,492 U.S. government agencies 396 10 — 406 Agency RMBS 3,294 386 — 3,680 Corporate bonds 304 — 694 998 Other debt securities 146 — 563 709 Equity securities 375 — 43 418 Total $ 7,003 $ 400 $ 1,300 $ 8,703 Securities lending: U.S. government agencies $ 39 $ — $ — $ 39 Other debt securities 477 — — 477 Equity securities 1,099 — — 1,099 Total $ 1,615 $ — $ — $ 1,615 Total borrowings $ 8,618 $ 400 $ 1,300 $ 10,318 BNY Mellon’s repurchase agreements and securities lending transactions primarily encounter risk associated with liquidity. We are required to pledge collateral based on predetermined terms within the agreements. If we were to experience a decline in the fair value of the collateral pledged for these transactions, we could be required to provide additional collateral to the counterparty, therefore decreasing the amount of assets available for other liquidity needs that may arise. BNY Mellon also offers tri-party collateral agency services in the tri-party repo market where we are exposed to credit risk. In order to mitigate this risk, we require dealers to fully secure intraday credit. |
Commitments and contingent liab
Commitments and contingent liabilities | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingent liabilities | Commitments and contingent liabilities Off-balance sheet arrangements In the normal course of business, various commitments and contingent liabilities are outstanding that are not reflected in the accompanying consolidated balance sheets. Our significant trading and off-balance sheet risks are securities, foreign currency and interest rate risk management products, commercial lending commitments, letters of credit and securities lending indemnifications. We assume these risks to reduce interest rate and foreign currency risks, to provide customers with the ability to meet credit and liquidity needs and to hedge foreign currency and interest rate risks. These items involve, to varying degrees, credit, foreign currency and interest rate risk not recognized on the balance sheet. Our off-balance sheet risks are managed and monitored in manners similar to those used for on-balance sheet risks. The following table presents a summary of our off-balance sheet credit risks. Off-balance sheet credit risks Sept. 30, 2017 Dec. 31, 2016 (in millions) Lending commitments $ 49,983 $ 51,270 Standby letters of credit (a) 3,619 4,185 Commercial letters of credit 265 339 Securities lending indemnifications (b) 406,434 317,690 (a) Net of participations totaling $681 million at Sept. 30, 2017 and $662 million at Dec. 31, 2016 . (b) Excludes the indemnification for securities for which BNY Mellon acts as an agent on behalf of CIBC Mellon clients, which totaled $65 billion at Sept. 30, 2017 and $61 billion at Dec. 31, 2016 . The total potential loss on undrawn lending commitments, standby and commercial letters of credit, and securities lending indemnifications is equal to the total notional amount if drawn upon, which does not consider the value of any collateral. Since many of the lending commitments are expected to expire without being drawn upon, the total amount does not necessarily represent future cash requirements. A summary of lending commitment maturities is as follows: $29.8 billion in less than one year, $20.0 billion in one to five years and $158 million over five years. Standby letters of credit (“SBLC”) principally support corporate obligations and were collateralized with cash and securities of $178 million at Sept. 30, 2017 and $293 million at Dec. 31, 2016 . At Sept. 30, 2017 , $2.3 billion of the SBLCs will expire within one year and $1.2 billion in one to five years and $48 million in over five years. We must recognize, at the inception of an SBLC and foreign and other guarantees, a liability for the fair value of the obligation undertaken in issuing the guarantee. The fair value of the liability, which was recorded with a corresponding asset in other assets, was estimated as the present value of contractual customer fees. The estimated liability for losses related to SBLCs and foreign and other guarantees, if any, is included in the allowance for lending-related commitments. The allowance for lending-related commitments was $104 million at Sept. 30, 2017 and $112 million at Dec. 31, 2016 . Payment/performance risk of SBLCs is monitored using both historical performance and internal ratings criteria. BNY Mellon’s historical experience is that SBLCs typically expire without being funded. SBLCs below investment grade are monitored closely for payment/performance risk. The table below shows SBLCs by investment grade: Standby letters of credit Sept. 30, 2017 Dec. 31, 2016 Investment grade 86 % 89 % Non-investment grade 14 % 11 % A commercial letter of credit is normally a short-term instrument used to finance a commercial contract for the shipment of goods from a seller to a buyer. Although the commercial letter of credit is contingent upon the satisfaction of specified conditions, it represents a credit exposure if the buyer defaults on the underlying transaction. As a result, the total contractual amounts do not necessarily represent future cash requirements. Commercial letters of credit totaled $265 million at Sept. 30, 2017 and $339 million at Dec. 31, 2016 . We expect many of the lending commitments and letters of credit to expire without the need to advance any cash. The revenue associated with guarantees frequently depends on the credit rating of the obligor and the structure of the transaction, including collateral, if any. A securities lending transaction is a fully collateralized transaction in which the owner of a security agrees to lend the security (typically through an agent, in our case, The Bank of New York Mellon), to a borrower, usually a broker-dealer or bank, on an open, overnight or term basis, under the terms of a prearranged contract, which normally matures in less than 90 days. We typically lend securities with indemnification against borrower default. We generally require the borrower to provide collateral with a minimum value of 102% of the fair value of the securities borrowed, which is monitored on a daily basis, thus reducing credit risk. Market risk can also arise in securities lending transactions. These risks are controlled through policies limiting the level of risk that can be undertaken. Securities lending transactions are generally entered into only with highly rated counterparties. Securities lending indemnifications were secured by collateral of $424 billion at Sept. 30, 2017 and $331 billion at Dec. 31, 2016 . CIBC Mellon, a joint venture between BNY Mellon and the Canadian Imperial Bank of Commerce (“CIBC”), engages in securities lending activities. CIBC Mellon, BNY Mellon and CIBC jointly and severally indemnify securities lenders against specific types of borrower default. At Sept. 30, 2017 and Dec. 31, 2016 , $65 billion and $61 billion , respectively, of borrowings at CIBC Mellon, for which BNY Mellon acts as agent on behalf of CIBC Mellon clients, were secured by collateral of $69 billion and $64 billion , respectively. If, upon a default, a borrower’s collateral was not sufficient to cover its related obligations, certain losses related to the indemnification could be covered by the indemnitors. Industry concentrations We have significant industry concentrations related to credit exposure at Sept. 30, 2017 . The tables below present our credit exposure in the financial institutions and commercial portfolios. Financial institutions portfolio exposure (in billions) Sept. 30, 2017 Loans Unfunded commitments Total exposure Securities industry $ 2.9 $ 19.0 $ 21.9 Asset managers 1.6 6.5 8.1 Banks 6.3 1.4 7.7 Insurance 0.1 3.4 3.5 Government — 1.0 1.0 Other 1.0 1.4 2.4 Total $ 11.9 $ 32.7 $ 44.6 Commercial portfolio exposure (in billions) Sept. 30, 2017 Loans Unfunded commitments Total exposure Manufacturing $ 1.4 $ 6.3 $ 7.7 Services and other 0.9 4.4 5.3 Energy and utilities 0.6 4.5 5.1 Media and telecom 0.1 1.4 1.5 Total $ 3.0 $ 16.6 $ 19.6 Major concentrations in securities lending are primarily to broker-dealers and are generally collateralized with cash and/or securities. Exposure for certain administrative errors In connection with certain offshore tax-exempt funds that we manage, we may be liable to the funds for certain administrative errors. The errors relate to the resident status of such funds, potentially exposing the Company to a tax liability related to the funds’ earnings. The Company is in discussions with tax authorities regarding the funds. We believe we are appropriately accrued and the additional reasonably possible exposure is not significant. Indemnification arrangements We have provided standard representations for underwriting agreements, acquisition and divestiture agreements, sales of loans and commitments, and other similar types of arrangements and customary indemnification for claims and legal proceedings related to providing financial services that are not otherwise included above. Insurance has been purchased to mitigate certain of these risks. Generally, there are no stated or notional amounts included in these indemnifications and the contingencies triggering the obligation for indemnification are not expected to occur. Furthermore, often counterparties to these transactions provide us with comparable indemnifications. We are unable to develop an estimate of the maximum payout under these indemnifications for several reasons. In addition to the lack of a stated or notional amount in a majority of such indemnifications, we are unable to predict the nature of events that would trigger indemnification or the level of indemnification for a certain event. We believe, however, that the possibility that we will have to make any material payments for these indemnifications is remote. At Sept. 30, 2017 and Dec. 31, 2016 , we have not recorded any material liabilities under these arrangements. Clearing and settlement exchanges We are a noncontrolling equity investor in, and/or member of, several industry clearing or settlement exchanges through which foreign exchange, securities, derivatives or other transactions settle. Certain of these industry clearing and settlement exchanges require their members to guarantee their obligations and liabilities and/or to provide liquidity support in the event other members do not honor their obligations. We believe the likelihood that a clearing or settlement exchange (of which we are a member) would become insolvent is remote. Additionally, certain settlement exchanges have implemented loss allocation policies that enable the exchange to allocate settlement losses to the members of the exchange. It is not possible to quantify such mark-to-market loss until the loss occurs. Any ancillary costs that occur as a result of any mark-to-market loss cannot be quantified. In addition, we also sponsor clients as members on clearing and settlement exchanges and guarantee their obligations. At Sept. 30, 2017 and Dec. 31, 2016 , we have not recorded any material liabilities under these arrangements. Legal proceedings In the ordinary course of business, BNY Mellon and its subsidiaries are routinely named as defendants in or made parties to pending and potential legal actions. We also are subject to governmental and regulatory examinations, information-gathering requests, investigations and proceedings (both formal and informal). Claims for significant monetary damages are often asserted in many of these legal actions, while claims for disgorgement, restitution, penalties and/or other remedial actions or sanctions may be sought in governmental and regulatory matters. It is inherently difficult to predict the eventual outcomes of such matters given their complexity and the particular facts and circumstances at issue in each of these matters. However, on the basis of our current knowledge and understanding, we do not believe that judgments, settlements or orders, if any, arising from these matters (either individually or in the aggregate, after giving effect to applicable reserves and insurance coverage) will have a material adverse effect on the consolidated financial position or liquidity of BNY Mellon, although they could have a material effect on net income in a given period. In view of the inherent unpredictability of outcomes in litigation and governmental and regulatory matters, particularly where (i) the damages sought are substantial or indeterminate, (ii) the proceedings are in the early stages, or (iii) the matters involve novel legal theories or a large number of parties, as a matter of course there is considerable uncertainty surrounding the timing or ultimate resolution of litigation and governmental and regulatory matters, including a possible eventual loss, fine, penalty or business impact, if any, associated with each such matter. In accordance with applicable accounting guidance, BNY Mellon establishes accruals for litigation and governmental and regulatory matters when those matters proceed to a stage where they present loss contingencies that are both probable and reasonably estimable. In such cases, there may be a possible exposure to loss in excess of any amounts accrued. BNY Mellon will continue to monitor such matters for developments that could affect the amount of the accrual, and will adjust the accrual amount as appropriate. If the loss contingency in question is not both probable and reasonably estimable, BNY Mellon does not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. BNY Mellon believes that its accruals for legal proceedings are appropriate and, in the aggregate, are not material to the consolidated financial position of BNY Mellon, although future accruals could have a material effect on net income in a given period. For certain of those matters described here for which a loss contingency may, in the future, be reasonably possible (whether in excess of a related accrued liability or where there is no accrued liability), BNY Mellon is currently unable to estimate a range of reasonably possible loss. For those matters described here where BNY Mellon is able to estimate a reasonably possible loss, the aggregate range of such reasonably possible loss is up to $940 million in excess of the accrued liability (if any) related to those matters. The following describes certain judicial, regulatory and arbitration proceedings involving BNY Mellon: Mortgage-Securitization Trusts Proceedings The Bank of New York Mellon has been named as a defendant in a number of legal actions brought by MBS investors alleging that the trustee has expansive duties under the governing agreements, including the duty to investigate and pursue breach of representation and warranty claims against other parties to the MBS transactions. These actions include a lawsuit brought in New York State court on June 18, 2014, and later re-filed in federal court, by a group of institutional investors who purport to sue on behalf of 253 MBS trusts. Matters Related to R. Allen Stanford In late December 2005, Pershing LLC (“Pershing”) became a clearing firm for Stanford Group Co. (“SGC”), a registered broker-dealer that was part of a group of entities ultimately controlled by R. Allen Stanford (“Stanford”). Stanford International Bank (“SIB”), also controlled by Stanford, issued certificates of deposit (“CDs”). Some investors allegedly wired funds from their SGC accounts to purchase CDs. In 2009, the SEC charged Stanford with operating a Ponzi scheme in connection with the sale of CDs, and SGC was placed into receivership. Alleged purchasers of CDs have filed 15 lawsuits against Pershing that are pending in Texas, including two putative class actions. The purchasers allege that Pershing, as SGC’s clearing firm, assisted Stanford in a fraudulent scheme and assert contractual, statutory and common law claims. The remaining FINRA action has been resolved and dismissed. Brazilian Postalis Litigation BNY Mellon Servicos Financeiros DTVM S.A. (“DTVM”), a subsidiary that provides a number of asset services in Brazil, acts as administrator for certain investment funds in which the exclusive investor is a public pension fund for postal workers called Postalis-Instituto de Seguridade Social dos Correios e Telégrafos (“Postalis”). On Aug. 22, 2014, Postalis sued DTVM in Rio de Janeiro, Brazil for losses related to a Postalis investment fund for which DTVM serves as fund administrator. Postalis alleges that DTVM failed to properly perform alleged duties, including duties to conduct due diligence of and exert control over the fund manager, Atlântica Administração de Recursos (“Atlântica”), and Atlântica’s investments. On March 12, 2015, Postalis filed a lawsuit in Rio de Janeiro against DTVM and BNY Mellon Administração de Ativos Ltda. (“Ativos”) alleging failure to properly perform alleged duties relating to another fund of which DTVM is administrator and Ativos is investment manager. On Dec. 14, 2015, Associaceão Dos Profissionais Dos Correiros (“ADCAP”), a Brazilian postal workers association, filed a lawsuit in São Paulo against DTVM and other defendants alleging that DTVM improperly contributed to investment losses in the Postalis portfolio. On March 20, 2017, the lawsuit was dismissed without prejudice, and ADCAP has appealed that decision. On Dec. 17, 2015, Postalis filed three additional lawsuits in Rio de Janeiro against DTVM and Ativos alleging failure to properly perform alleged duties and liabilities for losses with respect to investments in several other funds. On Feb. 4, 2016, Postalis filed another lawsuit in Brasilia against DTVM, Ativos and BNY Mellon Alocação de Patrimônio Ltda., an investment management subsidiary, alleging failure to properly perform duties and liability for losses with respect to investments in various other funds of which the defendants were administrator and/or manager. The lawsuit has been transferred to São Paulo. Depositary Receipt Litigation Between late December 2015 and February 2016, four putative class action lawsuits were filed against BNY Mellon asserting claims relating to BNY Mellon’s foreign exchange pricing when converting dividends and other distributions from non-U.S. companies in its role as depositary bank to Depositary Receipt issuers. The claims are for breach of contract and violations of ERISA. The lawsuits have been consolidated into two suits that are pending in federal court in the Southern District of New York. Brazilian Silverado Litigation DTVM acts as administrator for the Fundo de Investimento em Direitos Creditórios Multisetorial Silverado Maximum (“Silverado Maximum Fund”), which invests in commercial credit receivables. On June 2, 2016, the Silverado Maximum Fund sued DTVM in its capacity as administrator, along with Deutsche Bank S.A. - Banco Alemão in its capacity as custodian and Silverado Gestão e Investimentos Ltda. in its capacity as investment manager. The Fund alleges that each of the defendants failed to fulfill its respective duty, and caused losses to the Fund for which the defendants are jointly and severally liable. Depositary Receipt Pre-Release Inquiry In March 2014, the Staff of the U.S. Securities and Exchange Commission’s Enforcement Division (the “Staff”) commenced an investigation into certain issuers of American Depositary Receipts (“ADRs”), including BNY Mellon, for the period of 2011 to 2015. The Staff has issued several requests to BNY Mellon for information relating to the pre-release of ADRs. In May 2017, BNY Mellon began discussions with the Staff about a possible resolution of the investigation. BNY Mellon has fully cooperated with this matter. |
Lines of business
Lines of business | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Lines of business | Lines of business We have an internal information system that produces performance data along product and service lines for our two principal businesses and the Other segment. Business accounting principles Our business data has been determined on an internal management basis of accounting, rather than the generally accepted accounting principles used for consolidated financial reporting. These measurement principles are designed so that reported results of the businesses will track their economic performance. Business results are subject to reclassification when organizational changes are made or when improvements are made in the measurement principles. The accounting policies of the businesses are the same as those described in Note 1 of the Notes to Consolidated Financial Statements in our 2016 Annual Report. The primary types of revenue for our two principal businesses and the Other segment are presented below. Business Primary types of revenue Investment Management • Investment management and performance fees from: Mutual funds Institutional clients Private clients High-net-worth individuals and families, endowments and foundations and related entities • Distribution and servicing fees • Other revenue from seed capital investments Investment Services • Asset servicing fees, including custody fees, fund services, broker-dealer services, securities finance and collateral and liquidity services • Issuer services fees, including Depositary Receipts and Corporate Trust • Clearing services fees • Treasury services fees, including global payments, trade finance and cash management • Foreign exchange revenue • Financing-related fees and net interest revenue from credit-related activities Other segment • Net interest revenue and lease-related gains (losses) from leasing operations • Gain (loss) on securities and net interest revenue from corporate treasury activity • Other trading revenue from derivatives and other trading activity • Results of business exits The results of our businesses are presented and analyzed on an internal management reporting basis. • Revenue amounts reflect fee and other revenue generated by each business. Fee and other revenue transferred between businesses under revenue transfer agreements is included within other revenue in each business. • Revenues and expenses associated with specific client bases are included in those businesses. For example, foreign exchange activity associated with clients using custody products is included in Investment Services. • Net interest revenue is allocated to businesses based on the yields on the assets and liabilities generated by each business. We employ a funds transfer pricing system that matches funds with the specific assets and liabilities of each business based on their interest sensitivity and maturity characteristics. • The provision for credit losses associated with the respective credit portfolios is reflected in each business segment. • Incentives expense related to restricted stock is allocated to the businesses. • Support and other indirect expenses are allocated to businesses based on internally developed methodologies. • Recurring FDIC expense is allocated to the businesses based on average deposits generated within each business. • Litigation expense is generally recorded in the business in which the charge occurs. • Management of the investment securities portfolio is a shared service contained in the Other segment. As a result, gains and losses associated with the valuation of the securities portfolio are included in the Other segment. • Client deposits serve as the primary funding source for our investment securities portfolio. We typically allocate all interest revenue to the businesses generating the deposits. Accordingly, accretion related to the portion of the investment securities portfolio restructured in 2009 has been included in the results of the businesses. • M&I expense is a corporate level item and is recorded in the Other segment. • Restructuring charges relate to corporate-level initiatives and were therefore recorded in the Other segment. • Balance sheet assets and liabilities and their related income or expense are specifically assigned to each business. Businesses with a net liability position have been allocated assets. • Goodwill and intangible assets are reflected within individual businesses. The following consolidating schedules presents the contribution of our businesses to our overall profitability. For the quarter ended Sept. 30, 2017 Investment Investment Other Consolidated (dollar amounts in millions) Fee and other revenue $ 918 (a) $ 2,187 $ 69 $ 3,174 (a) Net interest revenue (expense) 82 777 (20 ) 839 Total revenue 1,000 (a) 2,964 49 4,013 (a) Provision for credit losses (2 ) (2 ) (2 ) (6 ) Noninterest expense 702 1,874 77 2,653 (b) Income (loss) before taxes $ 300 (a) $ 1,092 $ (26 ) $ 1,366 (a)(b) Pre-tax operating margin (c) 30 % 37 % N/M 34 % Average assets $ 31,689 $ 252,461 $ 61,559 $ 345,709 (a) Both fee and other revenue and total revenue include the net income from consolidated investment management funds of $7 million representing $10 million of income and noncontrolling interests of $3 million . Income before taxes is net of noncontrolling interests of $3 million . (b) Noninterest expense includes a loss attributable to noncontrolling interest of $1 million related to other consolidated subsidiaries. (c) Income before taxes divided by total revenue. N/M - Not meaningful. For the quarter ended June 30, 2017 Investment Management Investment Services Other Consolidated (dollar amounts in millions) Fee and other revenue $ 899 (a) $ 2,115 $ 113 $ 3,127 (a) Net interest revenue (expense) 87 761 (22 ) 826 Total revenue 986 (a) 2,876 91 3,953 (a) Provision for credit losses — (3 ) (4 ) (7 ) Noninterest expense 698 1,927 28 2,653 (b) Income before taxes $ 288 (a) $ 952 $ 67 $ 1,307 (a)(b) Pre-tax operating margin (c) 29 % 33 % N/M 33 % Average assets $ 31,355 $ 254,724 $ 56,436 $ 342,515 (a) Both fee and other revenue and total revenue include the net income from consolidated investment management funds of $ 7 million , representing $10 million of income and noncontrolling interests of $3 million. Income before taxes is net of noncontrolling interests of $3 million. (b) Noninterest expense includes a loss attributable to noncontrolling interest of $ 2 million related to other consolidated subsidiaries. (c) Income before taxes divided by total revenue. N/M - Not meaningful. For the quarter ended Sept. 30, 2016 Investment Investment Other Consolidated (dollar amounts in millions) Fee and other revenue $ 876 (a) $ 2,183 $ 100 $ 3,159 (a) Net interest revenue (expense) 82 715 (23 ) 774 Total revenue 958 (a) 2,898 77 3,933 (a) Provision for credit losses — 1 (20 ) (19 ) Noninterest expense 702 1,851 88 2,641 (b) Income before taxes $ 256 (a) $ 1,046 $ 9 $ 1,311 (a)(b) Pre-tax operating margin (c) 27 % 36 % N/M 33 % Average assets $ 30,392 $ 275,714 $ 45,124 $ 351,230 (a) Both fee and other revenue and total revenue include net income from consolidated investment management funds of $ 8 million , representing $17 million of income and noncontrolling interests of $9 million. Income before taxes is net of noncontrolling interests of $9 million. (b) Noninterest expense includes a loss attributable to noncontrolling interest of $ 2 million related to other consolidated subsidiaries. (c) Income before taxes divided by total revenue. N/M - Not meaningful. For the nine months ended Sept. 30, 2017 Investment Investment Other Consolidated (dollar amounts in millions) Fee and other revenue $ 2,694 (a) $ 6,386 $ 254 $ 9,334 (a) Net interest revenue (expense) 255 2,245 (43 ) 2,457 Total revenue 2,949 (a) 8,631 211 11,791 (a) Provision for credit losses 1 (5 ) (14 ) (18 ) Noninterest expense 2,083 5,650 212 7,945 (b) Income before taxes $ 865 (a) $ 2,986 $ 13 $ 3,864 (a)(b) Pre-tax operating margin (c) 29 % 35 % N/M 33 % Average assets $ 31,372 $ 252,675 $ 57,463 $ 341,510 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of $29 million , representing $53 million of income and noncontrolling interests of $24 million . Income before taxes is net of noncontrolling interests of $24 million . (b) Noninterest expense includes a loss attributable to noncontrolling interest of $6 million related to other consolidated subsidiaries. (c) Income before taxes divided by total revenue. N/M - Not meaningful. For the nine months ended Sept. 30, 2016 Investment Investment Other Consolidated (dollar amounts in millions) Fee and other revenue $ 2,544 (a) $ 6,267 $ 324 $ 9,135 (a) Net interest revenue (expense) 247 2,084 (24 ) 2,307 Total revenue 2,791 (a) 8,351 300 11,442 (a) Provision for credit losses — 8 (26 ) (18 ) Noninterest expense 2,084 5,518 284 7,886 (b) Income before taxes $ 707 (a) $ 2,825 $ 42 $ 3,574 (a)(b) Pre-tax operating margin (c) 25 % 34 % N/M 31 % Average assets $ 30,048 $ 275,410 $ 57,832 $ 363,290 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of $15 million , representing $21 million of income and noncontrolling interests of $6 million . Income before taxes is net of a loss attributable to noncontrolling interests of $6 million . (b) Noninterest expense includes a loss attributable to noncontrolling interest of $6 million related to other consolidated subsidiaries. (c) Income before taxes divided by total revenue. N/M - Not meaningful. |
Supplemental information to the
Supplemental information to the Consolidated Statement of Cash Flows | 9 Months Ended |
Sep. 30, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental information to the Consolidated Statement of Cash Flows | Supplemental information to the Consolidated Statement of Cash Flows Noncash investing and financing transactions that, appropriately, are not reflected in the Consolidated Statement of Cash Flows are listed below. Noncash investing and financing transactions Nine months ended Sept. 30, (in millions) 2017 2016 Transfers from loans to other assets for other real estate owned (“OREO”) $ 3 $ 4 Change in assets of consolidated VIEs 429 392 Change in liabilities of consolidated VIEs 288 14 Change in nonredeemable noncontrolling interests of consolidated investment management funds 234 238 Securities purchased not settled 1,277 229 Securities sales not settled — 218 Securities matured not settled 350 — Held-to-maturity securities transferred to available-for-sale 74 10 Premises and equipment/capitalized software funded by capital lease obligations 347 12 |
Basis of presentation (Policies
Basis of presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accounting and financial reporting policies of BNY Mellon, a global financial services company, conform to U.S. generally accepted accounting principles (“GAAP”) and prevailing industry practices. The accompanying consolidated financial statements are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the periods presented have been made. These financial statements should be read in conjunction with BNY Mellon’s Annual Report on Form 10-K for the year ended Dec. 31, 2016 . Certain immaterial reclassifications have been made to prior periods to place them on a basis comparable with current period presentation. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates based upon assumptions about future economic and market conditions which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial condition. Amounts subject to estimates are items such as the allowance for loan losses and lending-related commitments, the fair value of financial instruments and derivatives, other-than-temporary impairment, goodwill and other intangibles and pension accounting. Among other effects, such changes in estimates could result in future impairments of investment securities, goodwill and intangible assets and establishment of allowances for loan losses and lending-related commitments as well as changes in pension and post-retirement expense. |
New accounting guidance | ASU 2017-04, Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . This ASU simplifies the annual goodwill impairment test by eliminating Step 2. The Step 2 calculation estimated the implied goodwill using the fair values of all assets, including previously unrecorded intangibles, and liabilities at the date of the test. Step 2 was required if the first step of the annual test indicated that the fair value of a reporting unit is less than its carrying value. After adopting this ASU, the amount of any goodwill impairment will be determined by the excess of the carrying value of a reporting unit over its fair value. The Company early adopted this ASU in the second quarter of 2017, in conjunction with its annual goodwill impairment test. The annual test did not result in any impairment. ASU 2016-09, Compensation – Stock Compensation In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation . This ASU simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, recognition of forfeitures and classification on the statement of cash flows. The Company adopted this ASU effective Jan. 1, 2017. For the first nine months of 2017, we recorded an income tax benefit of $45 million related to the vesting of stock awards and option exercises in the provision for income taxes. Previously, this had been recorded directly to additional paid-in capital. The impact in future periods will vary depending on the number of restricted stock units vesting (which primarily occurs in the first quarter of each year), the number of stock options exercised and the change in value since the grant date. We continue to apply our accounting policy election for estimating forfeitures. Additionally, beginning in the quarter ended March 31, 2017, we report excess tax benefits related to stock-based compensation as operating activities on the statement of cash flows and the employee taxes paid will continue to be reported as financing activities. |
Other-than-temporary impairment | Other-than-temporary impairment We conduct periodic reviews of all securities to determine whether OTTI has occurred. Such reviews may incorporate the use of economic models. Various inputs to the economic models are used to determine if an unrealized loss on securities is other-than-temporary. For example, the most significant inputs related to non-agency RMBS are: • Default rate - the number of mortgage loans expected to go into default over the life of the transaction, which is driven by the roll rate of loans in each performance bucket that will ultimately migrate to default; and • Severity - the loss expected to be realized when a loan defaults. To determine if an unrealized loss is other-than-temporary, we project total estimated defaults of the underlying assets (mortgages) and multiply that calculated amount by an estimate of realizable value upon sale of these assets in the marketplace (severity) in order to determine the projected collateral loss. In determining estimated default rate and severity assumptions, we review the performance of the underlying securities, industry studies and market forecasts, as well as our view of the economic outlook affecting collateral. We also evaluate the current credit enhancement underlying the bond to determine the impact on cash flows. If we determine that a given security will be subject to a write-down or loss, we record the expected credit loss as a charge to earnings. |
Fair value measurement | Fair value measurement Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. A three-level hierarchy for fair value measurements is utilized based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. BNY Mellon’s own creditworthiness is considered when valuing liabilities. See Note 18 of the Notes to Consolidated Financial Statements in our 2016 Annual Report for information on how we determine fair value and the fair value hierarchy. The following tables present the financial instruments carried at fair value at Sept. 30, 2017 and Dec. 31, 2016 , by caption on the consolidated balance sheet and by the three-level valuation hierarchy. We have included credit ratings information in certain of the tables because the information indicates the degree of credit risk to which we are exposed, and significant changes in ratings classifications could result in increased risk for us. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Securities [Abstract] | |
Amortized Cost and Fair Values of Securities | The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of securities at Sept. 30, 2017 and Dec. 31, 2016 . Securities at Sept. 30, 2017 Gross unrealized Amortized cost Fair value (in millions) Gains Losses Available-for-sale: U.S. Treasury $ 15,389 $ 236 $ 123 $ 15,502 U.S. government agencies 866 4 6 864 State and political subdivisions 3,091 57 24 3,124 Agency RMBS 24,546 135 250 24,431 Non-agency RMBS 491 37 3 525 Other RMBS 270 3 8 265 Commercial MBS 960 9 4 965 Agency commercial MBS 9,026 41 57 9,010 CLOs 2,542 9 1 2,550 Other asset-backed securities 1,152 5 — 1,157 Foreign covered bonds 2,529 20 7 2,542 Corporate bonds 1,262 21 8 1,275 Sovereign debt/sovereign guaranteed 12,393 195 23 12,565 Other debt securities 3,149 12 10 3,151 Equity securities 2 2 — 4 Money market funds 939 — — 939 Non-agency RMBS (a) 885 304 4 1,185 Total securities available-for-sale (b) $ 79,492 $ 1,090 $ 528 $ 80,054 Held-to-maturity: U.S. Treasury $ 9,867 $ 21 $ 29 $ 9,859 U.S. government agencies 1,614 — 6 1,608 State and political subdivisions 18 — 1 17 Agency RMBS 25,575 96 185 25,486 Non-agency RMBS 64 5 — 69 Other RMBS 65 — 1 64 Commercial MBS 6 — — 6 Agency commercial MBS 1,118 5 5 1,118 Foreign covered bonds 83 1 — 84 Sovereign debt/sovereign guaranteed 1,558 32 — 1,590 Other debt securities 27 — — 27 Total securities held-to-maturity $ 39,995 $ 160 $ 227 $ 39,928 Total securities $ 119,487 $ 1,250 $ 755 $ 119,982 (a) Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. (b) Includes gross unrealized gains of $53 million and gross unrealized losses of $155 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized gains and losses are primarily related to Agency RMBS and will be amortized into net interest revenue over the contractual lives of the securities. Securities at Dec. 31, 2016 Gross Amortized cost Fair value (in millions) Gains Losses Available-for-sale: U.S. Treasury $ 14,373 $ 115 $ 181 $ 14,307 U.S. government agencies 366 2 9 359 State and political subdivisions 3,392 38 52 3,378 Agency RMBS 22,929 148 341 22,736 Non-agency RMBS 620 31 13 638 Other RMBS 517 4 8 513 Commercial MBS 931 8 11 928 Agency commercial MBS 6,505 28 84 6,449 CLOs 2,593 6 1 2,598 Other asset-backed securities 1,729 4 6 1,727 Foreign covered bonds 2,126 24 9 2,141 Corporate bonds 1,391 22 17 1,396 Sovereign debt/sovereign guaranteed 12,248 261 20 12,489 Other debt securities 1,952 19 10 1,961 Equity securities 2 1 — 3 Money market funds 842 — — 842 Non-agency RMBS (a) 1,080 286 9 1,357 Total securities available-for-sale (b) $ 73,596 $ 997 $ 771 $ 73,822 Held-to-maturity: U.S. Treasury $ 11,117 $ 22 $ 41 $ 11,098 U.S. government agencies 1,589 — 6 1,583 State and political subdivisions 19 — 1 18 Agency RMBS 25,221 57 299 24,979 Non-agency RMBS 78 4 2 80 Other RMBS 142 — 4 138 Commercial MBS 7 — — 7 Agency commercial MBS 721 1 10 712 Foreign covered bonds 74 1 — 75 Sovereign debt/sovereign guaranteed 1,911 42 — 1,953 Other debt securities 26 — — 26 Total securities held-to-maturity $ 40,905 $ 127 $ 363 $ 40,669 Total securities $ 114,501 $ 1,124 $ 1,134 $ 114,491 (a) Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. (b) Includes gross unrealized gains of $62 million and gross unrealized losses of $190 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized gains and losses are primarily related to Agency RMBS and will be amortized into net interest revenue over the contractual lives of the securities. |
Schedule of Realized Gain (Loss) | The following table presents the gross securities gains, losses and impairments. Net securities gains (losses) (in millions) 3Q17 2Q17 3Q16 YTD17 YTD16 Realized gross gains $ 20 $ 3 $ 26 $ 34 $ 71 Realized gross losses — (2 ) (1 ) (2 ) (1 ) Recognized gross impairments (1 ) (1 ) (1 ) (3 ) (5 ) Total net securities gains $ 19 $ — $ 24 $ 29 $ 65 |
Aggregate Fair Value of Investments with Continuous Unrealized Loss Position | The following tables show the aggregate related fair value of investments with a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or more at Sept. 30, 2017 and Dec. 31, 2016 . Temporarily impaired securities at Sept. 30, 2017 Less than 12 months 12 months or more Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale: U.S. Treasury $ 7,900 $ 111 $ 495 $ 12 $ 8,395 $ 123 U.S. government agencies 399 6 — — 399 6 State and political subdivisions 310 4 384 20 694 24 Agency RMBS 8,935 72 4,145 178 13,080 250 Non-agency RMBS 5 — 156 3 161 3 Other RMBS 72 4 83 4 155 8 Commercial MBS 193 2 92 2 285 4 Agency commercial MBS 3,610 47 561 10 4,171 57 CLOs 449 1 — — 449 1 Foreign covered bonds 1,017 7 28 — 1,045 7 Corporate bonds 306 3 144 5 450 8 Sovereign debt/sovereign guaranteed 2,263 20 137 3 2,400 23 Other debt securities 1,347 9 84 1 1,431 10 Non-agency RMBS (a) 8 2 13 2 21 4 Total securities available-for-sale (b) $ 26,814 $ 288 $ 6,322 $ 240 $ 33,136 $ 528 Held-to-maturity: U.S. Treasury $ 7,281 $ 29 $ — $ — $ 7,281 $ 29 U.S. government agencies 1,459 5 99 1 1,558 6 State and political subdivisions — — 4 1 4 1 Agency RMBS 17,125 172 847 13 17,972 185 Other RMBS 15 — 35 1 50 1 Agency commercial MBS 557 5 — — 557 5 Total securities held-to-maturity $ 26,437 $ 211 $ 985 $ 16 $ 27,422 $ 227 Total temporarily impaired securities $ 53,251 $ 499 $ 7,307 $ 256 $ 60,558 $ 755 (a) Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. (b) Gross unrealized losses for 12 months or more of $155 million were recorded in accumulated other comprehensive income and related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized losses are primarily related to Agency RMBS and will be amortized into net interest revenue over the contractual lives of the securities. There were no gross unrealized losses for less than 12 months. Temporarily impaired securities at Dec. 31, 2016 Less than 12 months 12 months or more Total (in millions) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale: U.S. Treasury $ 8,489 $ 181 $ — $ — $ 8,489 $ 181 U.S. government agencies 257 9 — — 257 9 State and political subdivisions 1,058 33 131 19 1,189 52 Agency RMBS 14,766 141 1,673 200 16,439 341 Non-agency RMBS 21 — 332 13 353 13 Other RMBS 26 — 136 8 162 8 Commercial MBS 302 7 163 4 465 11 Agency commercial MBS 3,570 78 589 6 4,159 84 CLOs 443 1 404 — 847 1 Other asset-backed securities 276 1 357 5 633 6 Foreign covered bonds 712 9 — — 712 9 Corporate bonds 594 16 7 1 601 17 Sovereign debt/sovereign guaranteed 1,521 20 63 — 1,584 20 Other debt securities 742 10 50 — 792 10 Non-agency RMBS (a) 25 — 47 9 72 9 Total securities available-for-sale (b) $ 32,802 $ 506 $ 3,952 $ 265 $ 36,754 $ 771 Held-to-maturity: U.S. Treasury $ 6,112 $ 41 $ — $ — $ 6,112 $ 41 U.S. government agencies 1,533 6 — — 1,533 6 State and political subdivisions — — 4 1 4 1 Agency RMBS 19,498 297 102 2 19,600 299 Non-agency RMBS 4 — 48 2 52 2 Other RMBS 15 — 123 4 138 4 Agency commercial MBS 621 10 — — 621 10 Total securities held-to-maturity $ 27,783 $ 354 $ 277 $ 9 $ 28,060 $ 363 Total temporarily impaired securities $ 60,585 $ 860 $ 4,229 $ 274 $ 64,814 $ 1,134 (a) Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. (b) Includes gross unrealized losses for 12 months or more of $190 million recorded in accumulated other comprehensive income related to investment securities that were transferred from available-for-sale to held-to-maturity. The unrealized losses are primarily related to Agency RMBS and will be amortized into net interest revenue over the contractual lives of the securities. There were no gross unrealized losses for less than 12 months. |
Maturity Distribution by Carrying Amount and Yield (on Tax Equivalent Basis) of Investment Securities Portfolio | The following table shows the maturity distribution by carrying amount and yield (on a tax equivalent basis) of our investment securities portfolio at Sept. 30, 2017 . Maturity distribution and yield on investment securities at Sept. 30, 2017 U.S. Treasury U.S. government agencies State and political subdivisions Other bonds, notes and debentures Mortgage/ asset-backed and equity securities (dollars in millions) Amount Yield (a) Amount Yield (a) Amount Yield (a) Amount Yield (a) Amount Yield (a) Total Securities available-for-sale: One year or less $ 2,223 1.02 % $ — — % $ 438 2.60 % $ 3,852 1.01 % $ — — % $ 6,513 Over 1 through 5 years 5,790 1.66 174 1.29 1,576 3.07 12,648 0.99 — — 20,188 Over 5 through 10 years 4,002 1.90 690 2.46 912 3.34 2,835 0.81 — — 8,439 Over 10 years 3,487 3.11 — — 198 2.36 198 1.64 — — 3,883 Mortgage-backed securities — — — — — — — — 36,381 2.78 36,381 Asset-backed securities — — — — — — — — 3,707 2.32 3,707 Equity securities (b) — — — — — — — — 943 — 943 Total $ 15,502 1.96 % $ 864 2.23 % $ 3,124 3.04 % $ 19,533 0.97 % $ 41,031 2.68 % $ 80,054 Securities held-to-maturity: One year or less $ 4,943 0.97 % $ 731 0.99 % $ — — % $ 700 0.60 % $ — — % $ 6,374 Over 1 through 5 years 3,517 1.67 883 1.38 2 6.88 307 0.59 — — 4,709 Over 5 through 10 years 1,407 1.92 — — 2 6.86 661 0.73 — — 2,070 Over 10 years — — — — 14 5.32 — — — — 14 Mortgage-backed securities — — — — — — — — 26,828 2.80 26,828 Total $ 9,867 1.36 % $ 1,614 1.20 % $ 18 5.64 % $ 1,668 0.65 % $ 26,828 2.80 % $ 39,995 (a) Yields are based upon the amortized cost of securities. (b) Includes money market funds. |
Projected Weighted-Average Default Rates and Loss Severities | The table below shows the projected weighted-average default rates and loss severities for the 2007, 2006 and late 2005 non-agency RMBS and the securities previously held in the Grantor Trust that we established in connection with the restructuring of our investment securities portfolio in 2009, at Sept. 30, 2017 and Dec. 31, 2016 . Projected weighted-average default rates and loss severities Sept. 30, 2017 Dec. 31, 2016 Default rate Severity Default rate Severity Alt-A 22 % 54 % 30 % 54 % Subprime 38 % 66 % 49 % 70 % Prime 13 % 39 % 18 % 39 % |
Pre-Tax Securities Gains (Losses) by Type | The following table presents pre-tax net securities gains (losses) by type. Net securities gains (losses) (in millions) 3Q17 2Q17 3Q16 YTD17 YTD16 Agency RMBS $ 4 $ — $ 9 $ 5 $ 22 U.S. Treasury 1 (1 ) (1 ) — 4 Foreign covered bonds — — — — 10 Non-agency RMBS (1 ) — (1 ) (2 ) 1 Other 15 1 17 26 28 Total net securities gains $ 19 $ — $ 24 $ 29 $ 65 |
Debt Securities Credit Losses Roll Forward Recorded in Earnings | The following tables reflect investment securities credit losses recorded in earnings. The beginning balance represents the credit loss component for which OTTI occurred on debt securities in prior periods. The additions represent the first time a debt security was credit impaired or when subsequent credit impairments have occurred. The deductions represent credit losses on securities that have been sold, are required to be sold, or for which it is our intention to sell. Debt securities credit loss roll forward (in millions) 3Q17 3Q16 Beginning balance as of June 30 $ 85 $ 91 Add: Initial OTTI credit losses — — Subsequent OTTI credit losses 1 1 Less: Realized losses for securities sold 2 5 Ending balance as of Sept. 30 $ 84 $ 87 Debt securities credit loss roll forward (in millions) YTD17 YTD16 Beginning balance as of Jan. 1 $ 88 $ 91 Add: Initial OTTI credit losses — — Subsequent OTTI credit losses 3 5 Less: Realized losses for securities sold 7 9 Ending balance as of Sept. 30 $ 84 $ 87 |
Loans and asset quality (Tables
Loans and asset quality (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio and Industry Concentrations of Credit Risk | The table below provides the details of our loan portfolio and industry concentrations of credit risk at Sept. 30, 2017 and Dec. 31, 2016 . Loans Sept. 30, 2017 Dec. 31, 2016 (in millions) Domestic: Financial institutions $ 5,155 $ 6,342 Commercial 2,698 2,286 Wealth management loans and mortgages 16,161 15,555 Commercial real estate 4,921 4,639 Lease financings 823 989 Other residential mortgages 741 854 Overdrafts 1,487 1,055 Other 1,159 1,202 Margin loans 13,720 17,503 Total domestic 46,865 50,425 Foreign: Financial institutions 6,741 8,347 Commercial 305 331 Wealth management loans and mortgages 104 99 Commercial real estate 6 15 Lease financings 522 736 Other (primarily overdrafts) 4,373 4,418 Margin loans 152 87 Total foreign 12,203 14,033 Total loans (a) $ 59,068 $ 64,458 (a) Net of unearned income of $414 million at Sept. 30, 2017 and $527 million at Dec. 31, 2016 primarily on domestic and foreign lease financings. |
Summary of Transactions in the Allowance for Credit Losses | Transactions in the allowance for credit losses are summarized as follows. Allowance for credit losses activity for the quarter ended Sept. 30, 2017 Wealth management loans and mortgages Other residential mortgages (in millions) Commercial Commercial real estate Financial institutions Lease financings All other Foreign Total Beginning balance $ 80 $ 75 $ 23 $ 10 $ 25 $ 23 $ — $ 34 $ 270 Charge-offs — — — — — — — — — Recoveries — — — — — 1 — — 1 Net recoveries — — — — — 1 — — 1 Provision 1 — — (1 ) (4 ) (3 ) — 1 (6 ) Ending balance $ 81 $ 75 $ 23 $ 9 $ 21 $ 21 $ — $ 35 $ 265 Allowance for: Loan losses $ 26 $ 57 $ 7 $ 9 $ 17 $ 21 $ — $ 24 $ 161 Lending-related commitments 55 18 16 — 4 — — 11 104 Individually evaluated for impairment: Loan balance $ — $ — $ 2 $ — $ 5 $ — $ — $ — $ 7 Allowance for loan losses — — 2 — — — — — 2 Collectively evaluated for impairment: Loan balance $ 2,698 $ 4,921 $ 5,153 $ 823 $ 16,156 $ 741 $ 16,366 (a) $ 12,203 $ 59,061 Allowance for loan losses 26 57 5 9 17 21 — 24 159 (a) Includes $1,487 million of domestic overdrafts, $13,720 million of margin loans and $1,159 million of other loans at Sept. 30, 2017 . Allowance for credit losses activity for the quarter ended June 30, 2017 Wealth management loans and mortgages Other residential mortgages (in millions) Commercial Commercial real estate Financial institutions Lease financings All other Foreign Total Beginning balance $ 82 $ 73 $ 23 $ 10 $ 26 $ 25 $ — $ 37 $ 276 Charge-offs — — — — — — — — — Recoveries — — — — — 1 — — 1 Net recoveries — — — — — 1 — — 1 Provision (2 ) 2 — — (1 ) (3 ) — (3 ) (7 ) Ending balance $ 80 $ 75 $ 23 $ 10 $ 25 $ 23 $ — $ 34 $ 270 Allowance for: Loan losses $ 26 $ 55 $ 7 $ 10 $ 21 $ 23 $ — $ 23 $ 165 Lending-related commitments 54 20 16 — 4 — — 11 105 Individually evaluated for impairment: Loan balance $ — $ — $ 2 $ — $ 7 $ — $ — $ — $ 9 Allowance for loan losses — — 2 — 3 — — — 5 Collectively evaluated for impairment: Loan balance $ 2,580 $ 5,017 $ 5,952 $ 847 $ 16,024 $ 780 $ 15,950 (a) $ 14,514 $ 61,664 Allowance for loan losses 26 55 5 10 18 23 — 23 160 (a) Includes $855 million of domestic overdrafts, $13,973 million of margin loans and $1,122 million of other loans at June 30, 2017 . Allowance for credit losses activity for the quarter ended Sept. 30, 2016 Wealth management loans and mortgages Other residential mortgages All other Foreign Total (in millions) Commercial Commercial real estate Financial institutions Lease financings Beginning balance $ 90 $ 63 $ 29 $ 14 $ 18 $ 29 $ — $ 37 $ 280 Charge-offs — — — — — (1 ) — — (1 ) Recoveries — — 13 — — 1 — — 14 Net recoveries — — 13 — — — — — 13 Provision 1 — (13 ) — — (1 ) — (6 ) (19 ) Ending balance $ 91 $ 63 $ 29 $ 14 $ 18 $ 28 $ — $ 31 $ 274 Allowance for: Loan losses $ 22 $ 45 $ 9 $ 14 $ 14 $ 28 $ — $ 16 $ 148 Lending-related commitments 69 18 20 — 4 — — 15 126 Individually evaluated for impairment: Loan balance $ — $ 1 $ — $ 4 $ 4 $ — $ — $ — $ 9 Allowance for loan losses — 1 — 2 — — — — 3 Collectively evaluated for impairment: Loan balance $ 2,292 $ 4,693 $ 6,783 $ 1,013 $ 15,027 $ 901 $ 20,189 (a) $ 15,061 $ 65,959 Allowance for loan losses 22 44 9 12 14 28 — 16 145 (a) Includes $1,580 million of domestic overdrafts, $17,487 million of margin loans and $1,122 million of other loans at Sept. 30, 2016 . Allowance for credit losses activity for the nine months ended Sept. 30, 2017 Wealth management loans and mortgages Other All Foreign Total (in millions) Commercial Commercial Financial Lease Beginning balance $ 82 $ 73 $ 26 $ 13 $ 23 $ 28 $ — $ 36 $ 281 Charge-offs — — — — — (1 ) — — (1 ) Recoveries — — — — — 3 — — 3 Net recoveries — — — — — 2 — — 2 Provision (1 ) 2 (3 ) (4 ) (2 ) (9 ) — (1 ) (18 ) Ending balance $ 81 $ 75 $ 23 $ 9 $ 21 $ 21 $ — $ 35 $ 265 Allowance for credit losses activity for the nine months ended Sept. 30, 2016 Wealth management loans and mortgages Other All Foreign Total (in millions) Commercial Commercial Financial Lease Beginning balance $ 82 $ 59 $ 31 $ 15 $ 19 $ 34 $ — $ 35 $ 275 Charge-offs — — — — — (1 ) — — (1 ) Recoveries — — 13 — — 4 — 1 18 Net recoveries — — 13 — — 3 — 1 17 Provision 9 4 (15 ) (1 ) (1 ) (9 ) — (5 ) (18 ) Ending balance $ 91 $ 63 $ 29 $ 14 $ 18 $ 28 $ — $ 31 $ 274 |
Distribution of Nonperforming Assets | The table below presents our nonperforming assets. Nonperforming assets (in millions) Sept. 30, 2017 Dec. 31, 2016 Nonperforming loans: Other residential mortgages $ 80 $ 91 Wealth management loans and mortgages 8 8 Financial institutions 2 — Lease financings — 4 Total nonperforming loans 90 103 Other assets owned 4 4 Total nonperforming assets $ 94 $ 107 |
Schedule of Lost Interest Income | The table below presents the amount of lost interest income. Lost interest (in millions) 3Q17 2Q17 3Q16 YTD17 YTD16 Amount by which interest income recognized on nonperforming loans exceeded reversals $ — $ — $ — $ — $ — Amount by which interest income would have increased if nonperforming loans at period end had been performing for the entire period $ 1 $ 1 $ 1 $ 4 $ 4 |
Information about Impaired Loans | The tables below present information about our impaired loans. We use the discounted cash flow method as the primary method for valuing impaired loans. Impaired loans 3Q17 2Q17 3Q16 YTD17 YTD16 (in millions) Average recorded investment Interest Average recorded investment Interest income recognized Average Interest Average Interest Average Interest Impaired loans with an allowance: Commercial real estate $ — $ — $ — $ — $ 1 $ — $ — $ — $ 1 $ — Financial institutions 2 — 1 — — — 1 — — — Wealth management loans and mortgages 2 — 3 — 3 — 3 — 5 — Lease financings — — — — 4 — 1 — 3 — Total impaired loans with an allowance 4 — 4 — 8 — 5 — 9 — Impaired loans without an allowance : Commercial real estate — — — — 1 — — — 1 — Financial institutions — — — — 85 — — — 128 — Wealth management loans and mortgages 4 — 3 — 3 — 3 — 2 — Total impaired loans without an allowance (a) 4 — 3 — 89 — 3 — 131 — Total impaired loans $ 8 $ — $ 7 $ — $ 97 $ — $ 8 $ — $ 140 $ — (a) When the discounted cash flows, collateral value or market price equals or exceeds the carrying value of the loan, then the loan does not require an allowance under the accounting standard related to impaired loans. Impaired loans Sept. 30, 2017 Dec. 31, 2016 (in millions) Recorded investment Unpaid principal balance Related allowance (a) Recorded investment Unpaid principal balance Related allowance (a) Impaired loans with an allowance: Commercial real estate $ — $ 3 $ — $ — $ 3 $ — Financial institutions 2 2 2 — — — Wealth management loans and mortgages 1 1 — 3 3 3 Lease financings — — — 4 4 2 Total impaired loans with an allowance 3 6 2 7 10 5 Impaired loans without an allowance : Wealth management loans and mortgages 4 4 N/A 2 2 N/A Total impaired loans without an allowance (b) 4 4 N/A 2 2 N/A Total impaired loans (c) $ 7 $ 10 $ 2 $ 9 $ 12 $ 5 (a) The allowance for impaired loans is included in the allowance for loan losses. (b) When the discounted cash flows, collateral value or market price equals or exceeds the carrying value of the loan, then the loan does not require an allowance under the accounting standard related to impaired loans. (c) Excludes an aggregate of less than $1 million of impaired loans in amounts individually less than $1 million at both Sept. 30, 2017 and Dec. 31, 2016 , respectively. The allowance for loan losses associated with these loans totaled less than $1 million at both Sept. 30, 2017 and Dec. 31, 2016 , respectively. |
Information about Past Due Loans | The table below presents our past due loans. Past due loans and still accruing interest Sept. 30, 2017 Dec. 31, 2016 Days past due Total past due Days past due Total past due (in millions) 30-59 60-89 ≥90 30-59 60-89 ≥90 Commercial real estate $ 51 $ 60 $ — $ 111 $ 78 $ — $ — $ 78 Wealth management loans and mortgages 86 15 1 102 21 2 — 23 Other residential mortgages 20 3 5 28 20 6 7 33 Financial institutions — — — — 1 27 — 28 Total past due loans $ 157 $ 78 $ 6 $ 241 $ 120 $ 35 $ 7 $ 162 |
Troubled Debt Restructurings | The following table presents our TDRs. TDRs 3Q17 2Q17 3Q16 Outstanding recorded investment Outstanding recorded investment Outstanding recorded investment (dollars in millions) Number of contracts Pre-modification Post-modification Number of contracts Pre-modification Post-modification Number of contracts Pre-modification Post-modification Other residential mortgages 19 $ 5 $ 5 16 $ 4 $ 4 17 $ 4 $ 4 Wealth management loans and mortgages 1 2 2 — — — — — — Total TDRs 20 $ 7 $ 7 16 $ 4 $ 4 17 $ 4 $ 4 |
Credit Quality Indicators - Commercial Portfolio - Credit Risk Profile by Creditworthiness Category | The following tables present information about credit quality indicators. Commercial loan portfolio Commercial loan portfolio – Credit risk profile by creditworthiness category Commercial Commercial real estate Financial institutions Sept. 30, 2017 Dec. 31, 2016 Sept. 30, 2017 Dec. 31, 2016 Sept. 30, 2017 Dec. 31, 2016 (in millions) Investment grade $ 2,857 $ 2,397 $ 4,339 $ 3,823 $ 9,217 $ 11,459 Non-investment grade 146 220 588 831 2,679 3,230 Total $ 3,003 $ 2,617 $ 4,927 $ 4,654 $ 11,896 $ 14,689 |
Credit Quality Indicators - Wealth Management Loans and Mortgages - Credit Risk Profile by Internally Assigned Grade | Wealth management loans and mortgages Wealth management loans and mortgages – Credit risk profile by internally assigned grade (in millions) Sept. 30, 2017 Dec. 31, 2016 Wealth management loans: Investment grade $ 7,128 $ 7,127 Non-investment grade 135 260 Wealth management mortgages 9,002 8,267 Total $ 16,265 $ 15,654 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Breakdown of Goodwill by Business | The tables below provide a breakdown of goodwill by business. Goodwill by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2016 $ 9,000 $ 8,269 $ 47 $ 17,316 Foreign currency translation 120 107 — 227 Balance at Sept. 30, 2017 $ 9,120 $ 8,376 $ 47 $ 17,543 Goodwill by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2015 $ 9,207 $ 8,366 $ 45 $ 17,618 Acquisitions 29 (1 ) — 28 Foreign currency translation (167 ) (30 ) — (197 ) Other (a) 2 (4 ) 2 — Balance at Sept. 30, 2016 $ 9,071 $ 8,331 $ 47 $ 17,449 (a) Other changes in goodwill include purchase price adjustments and certain other reclassifications. |
Breakdown of Intangible Assets by Business | The tables below provide a breakdown of intangible assets by business. Intangible assets – net carrying amount by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2016 $ 1,717 $ 1,032 $ 849 $ 3,598 Amortization (45 ) (112 ) — (157 ) Foreign currency translation 16 4 — 20 Balance at Sept. 30, 2017 $ 1,688 $ 924 $ 849 $ 3,461 Intangible assets – net carrying amount by business (in millions) Investment Investment Other Consolidated Balance at Dec. 31, 2015 $ 1,807 $ 1,186 $ 849 $ 3,842 Acquisitions 30 2 — 32 Amortization (60 ) (117 ) — (177 ) Foreign currency translation (27 ) 1 — (26 ) Balance at Sept. 30, 2016 $ 1,750 $ 1,072 $ 849 $ 3,671 |
Breakdown of Intangible Assets by Type | The table below provides a breakdown of intangible assets by type. Intangible assets Sept. 30, 2017 Dec. 31, 2016 (in millions) Gross carrying amount Accumulated amortization Net carrying amount Remaining weighted- average amortization period Gross Accumulated Net carrying amount Subject to amortization: (a) Customer relationships—Investment Management $ 1,483 $ (1,221 ) $ 262 11 years $ 1,439 $ (1,136 ) $ 303 Customer contracts—Investment Services 2,257 (1,705 ) 552 10 years 2,249 (1,590 ) 659 Other 25 (22 ) 3 2 years 37 (33 ) 4 Total subject to amortization 3,765 (2,948 ) 817 10 years 3,725 (2,759 ) 966 Not subject to amortization: (b) Trade name 1,350 N/A 1,350 N/A 1,348 N/A 1,348 Customer relationships 1,294 N/A 1,294 N/A 1,284 N/A 1,284 Total not subject to amortization 2,644 N/A 2,644 N/A 2,632 N/A 2,632 Total intangible assets $ 6,409 $ (2,948 ) $ 3,461 N/A $ 6,357 $ (2,759 ) $ 3,598 (a) Excludes fully amortized intangible assets. (b) Intangible assets not subject to amortization have an indefinite life. |
Estimated Annual Amortization Expense | Estimated annual amortization expense for current intangibles for the next five years is as follows: For the year ended Estimated amortization expense (in millions) 2017 $ 209 2018 180 2019 109 2020 98 2021 75 |
Other assets (Tables)
Other assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Assets [Abstract] | |
Other Assets | The following table provides the components of other assets presented on the balance sheet. Other assets Sept. 30, 2017 Dec. 31, 2016 (in millions) Corporate/bank-owned life insurance $ 4,824 $ 4,789 Accounts receivable 3,899 4,060 Fails to deliver 3,532 1,732 Software 1,513 1,451 Renewable energy investments 1,344 1,282 Equity in a joint venture and other investments 1,153 1,063 Income taxes receivable 1,020 1,172 Qualified affordable housing project investments 988 914 Prepaid pension assets 951 836 Prepaid expenses 512 438 Federal Reserve Bank stock 474 466 Fair value of hedging derivatives 344 784 Due from customers on acceptances 318 340 Seed capital 302 395 Other (a) 1,113 1,232 Total other assets $ 22,287 $ 20,954 (a) At Sept. 30, 2017 , other assets include $76 million of Federal Home Loan Bank stock, at cost. |
Seed Capital and Private Equity Investments Valued Using Net Asset Value | The table below presents information about our investments in seed capital and private equity investments that have been valued using NAV. Seed capital and private equity investments valued using NAV Sept. 30, 2017 Dec. 31, 2016 (dollar amounts in millions) Fair value Unfunded commitments Redemption frequency Redemption notice period Fair value Unfunded commitments Redemption frequency Redemption notice period Seed capital and other funds (a) $ 97 $ 2 Daily-quarterly 1-95 days $ 171 $ 1 Daily-quarterly 1-180 days Private equity investments (SBICs) (b) 54 47 N/A N/A 43 46 N/A N/A Total $ 151 $ 49 $ 214 $ 47 (a) Other funds include various leveraged loans, hedge funds and structured credit funds. Redemption notice periods vary by fund. (b) Private equity investments primarily include Volcker Rule-compliant investments in SBICs that invest in various sectors of the economy. Private equity investments do not have redemption rights. Distributions from such investments will be received as the underlying investments in the private equity investments are liquidated. |
Net interest revenue (Tables)
Net interest revenue (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Interest Revenue (Expense), Net [Abstract] | |
Components of Net Interest Revenue | The following table provides the components of net interest revenue presented on the consolidated income statement. Net interest revenue Quarter ended Year-to-date Sept. 30, 2017 June 30, 2017 Sept. 30, 2016 Sept. 30, 2017 Sept. 30, 2016 (in millions) Interest revenue Non-margin loans $ 283 $ 272 $ 218 $ 800 $ 637 Margin loans 87 87 67 249 194 Securities: Taxable 510 476 434 1,447 1,307 Exempt from federal income taxes 16 16 17 49 53 Total securities 526 492 451 1,496 1,360 Deposits with banks 34 27 26 83 76 Deposits with the Federal Reserve and other central banks 89 71 37 217 170 Federal funds sold and securities purchased under resale agreements 119 86 62 272 167 Trading assets 13 17 13 46 43 Total interest revenue 1,151 1,052 874 3,163 2,647 Interest expense Deposits 57 32 (6 ) 98 21 Federal funds purchased and securities sold under repurchase agreements 70 38 6 132 28 Trading liabilities 2 2 2 6 5 Other borrowed funds 7 4 1 13 5 Commercial paper 8 5 1 18 5 Customer payables 19 16 3 42 9 Long-term debt 149 129 93 397 267 Total interest expense 312 226 100 706 340 Net interest revenue 839 826 774 2,457 2,307 Provision for credit losses (6 ) (7 ) (19 ) (18 ) (18 ) Net interest revenue after provision for credit losses $ 845 $ 833 $ 793 $ 2,475 $ 2,325 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Defined Benefit Plan [Abstract] | |
Net Periodic Benefit (Credit) Cost | The components of net periodic benefit (credit) cost are as follows. Net periodic benefit (credit) cost Quarter ended Sept. 30, 2017 June 30, 2017 Sept. 30, 2016 (in millions) Domestic pension benefits Foreign pension benefits Health care benefits Domestic pension benefits Foreign pension benefits Health care benefits Domestic pension benefits Foreign pension benefits Health care benefits Service cost $ — $ 7 $ — $ — $ 7 $ — $ — $ 8 $ 1 Interest cost 45 8 2 45 8 2 45 9 2 Expected return on assets (81 ) (12 ) (2 ) (81 ) (12 ) (2 ) (82 ) (13 ) (2 ) Other 17 9 (1 ) 17 9 (1 ) 17 4 (1 ) Net periodic benefit (credit) cost $ (19 ) $ 12 $ (1 ) $ (19 ) $ 12 $ (1 ) $ (20 ) $ 8 $ — Net periodic benefit (credit) cost Year-to-date Sept. 30, 2017 Sept. 30, 2016 (in millions) Domestic pension benefits Foreign pension benefits Health care benefits Domestic pension benefits Foreign pension benefits Health care benefits Service cost $ — $ 21 $ — $ — $ 24 $ 3 Interest cost 135 24 6 135 27 6 Expected return on assets (243 ) (36 ) (6 ) (246 ) (39 ) (6 ) Other 51 27 (3 ) 52 13 (3 ) Net periodic benefit (credit) cost $ (57 ) $ 36 $ (3 ) $ (59 ) $ 25 $ — |
Variable interest entities an37
Variable interest entities and securitization (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Securitizations And Variable Interest Entities Disclosure [Abstract] | |
Incremental Assets and Liabilities Included in Consolidated Financial Statements | The following tables present the incremental assets and liabilities included in BNY Mellon’s consolidated financial statements, after applying intercompany eliminations, as of Sept. 30, 2017 and Dec. 31, 2016 . The net assets of any consolidated VIE are solely available to settle the liabilities of the VIE and to settle any investors’ ownership liquidation requests, including any seed capital invested in the VIE by BNY Mellon. Investments consolidated at Sept. 30, 2017 (in millions) Investment Management funds Securitization Total consolidated investments Securities - Available-for-sale $ — $ 400 $ 400 Trading assets 576 — 576 Other assets 226 — 226 Total assets $ 802 (a) $ 400 $ 1,202 Other liabilities $ 27 $ 369 $ 396 Total liabilities $ 27 (a) $ 369 $ 396 Nonredeemable noncontrolling interests $ 384 (a) $ — $ 384 (a) Includes voting model entities (“VMEs”) with assets of $90 million , liabilities of $2 million and nonredeemable noncontrolling interests of $20 million . Investments consolidated at Dec. 31, 2016 (in millions) Investment Management funds Securitization Total consolidated investments Securities - Available-for-sale $ — $ 400 $ 400 Trading assets 979 — 979 Other assets 252 — 252 Total assets $ 1,231 (a) $ 400 $ 1,631 Trading liabilities $ 282 $ — $ 282 Other liabilities 33 363 396 Total liabilities $ 315 (a) $ 363 $ 678 Nonredeemable noncontrolling interests $ 618 (a) $ — $ 618 (a) Includes VMEs with assets of $114 million , liabilities of $3 million and nonredeemable noncontrolling interests of $25 million . |
Schedule of Variable Interest Entities | As of Sept. 30, 2017 and Dec. 31, 2016 , the following assets and liabilities related to the VIEs where BNY Mellon is not the primary beneficiary are included in our consolidated financial statements and primarily relate to accounting for our investments in qualified affordable housing and renewable energy projects. Non-consolidated VIEs at Sept. 30, 2017 (in millions) Assets Liabilities Maximum loss exposure Securities - Available-for-sale (a) $ 143 $ — $ 143 Other 2,559 439 3,321 (a) Investments in the Company’s sponsored CLOs. Non-consolidated VIEs at Dec. 31, 2016 (in millions) Assets Liabilities Maximum loss exposure Securities - Available-for-sale (a) $ 42 $ — $ 42 Other 2,400 369 2,769 (a) Investments in the Company’s sponsored CLOs. |
Preferred stock (Tables)
Preferred stock (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Preferred Stock Summary | The following table summarizes BNY Mellon’s preferred stock issued and outstanding at Sept. 30, 2017 and Dec. 31, 2016 . Preferred stock summary (a) Total shares issued and outstanding Carrying value (b) (in millions) Per annum dividend rate Sept. 30, 2017 Dec. 31, 2016 Sept. 30, 2017 Dec. 31, 2016 Series A Greater of (i) three-month LIBOR plus 0.565% for the related distribution period; or (ii) 4.000% 5,001 5,001 $ 500 $ 500 Series C 5.2% 5,825 5,825 568 568 Series D 4.50% to but excluding June 20, 2023, then a floating rate equal to the three-month LIBOR plus 2.46% 5,000 5,000 494 494 Series E 4.95% to and including June 20, 2020, then a floating rate equal to the three-month LIBOR plus 3.42% 10,000 10,000 990 990 Series F 4.625% to and including Sept. 20, 2026, then a floating rate equal to the three-month LIBOR plus 3.131% 10,000 10,000 990 990 Total 35,826 35,826 $ 3,542 $ 3,542 (a) All outstanding preferred stock is noncumulative perpetual preferred stock with a liquidation preference of $100,000 per share. (b) The carrying value of the Series C, Series D, Series E and Series F preferred stock is recorded net of issuance costs. |
Other comprehensive income (l39
Other comprehensive income (loss) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Components of Other Comprehensive Income (Loss) | Components of other comprehensive income (loss) Quarter ended Sept. 30, 2017 June 30, 2017 Sept. 30, 2016 (in millions) Pre-tax amount Tax (expense) benefit After-tax amount Pre-tax amount Tax (expense) benefit After-tax amount Pre-tax amount Tax (expense) benefit After-tax amount Foreign currency translation: Foreign currency translation adjustments arising during the period (a) $ 221 $ 65 $ 286 $ 249 $ 81 $ 330 $ (104 ) $ (82 ) $ (186 ) Total foreign currency translation 221 65 286 249 81 330 (104 ) (82 ) (186 ) Unrealized gain (loss) on assets available-for-sale: Unrealized gain (loss) arising during period 47 (19 ) 28 146 (55 ) 91 (87 ) 34 (53 ) Reclassification adjustment (b) (19 ) 7 (12 ) — (1 ) (1 ) (24 ) 9 (15 ) Net unrealized gain (loss) on assets available-for-sale 28 (12 ) 16 146 (56 ) 90 (111 ) 43 (68 ) Defined benefit plans: Net gain (loss) arising during the period — — — — — — — — — Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost (b) 25 (10 ) 15 24 (8 ) 16 22 (8 ) 14 Total defined benefit plans 25 (10 ) 15 24 (8 ) 16 22 (8 ) 14 Unrealized gain (loss) on cash flow hedges: Unrealized hedge gain (loss) arising during period (2 ) — (2 ) (8 ) 4 (4 ) (24 ) 7 (17 ) Reclassification adjustment (b) 3 (1 ) 2 9 (4 ) 5 28 (9 ) 19 Net unrealized gain (loss) on cash flow hedges 1 (1 ) — 1 — 1 4 (2 ) 2 Total other comprehensive income (loss) $ 275 $ 42 $ 317 $ 420 $ 17 $ 437 $ (189 ) $ (49 ) $ (238 ) (a) Includes the impact of hedges of net investments in foreign subsidiaries. See Note 16 for additional information. (b) The reclassification adjustment related to the unrealized gain (loss) on assets available-for-sale is recorded as net securities gains on the Consolidated Income Statement. The amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost is recorded as staff expense on the Consolidated Income Statement. See Note 16 of the Notes to Consolidated Financial Statements for the location of the reclassification adjustment related to cash flow hedges on the Consolidated Income Statement. Components of other comprehensive income (loss) Year-to-date Sept. 30, 2017 Sept. 30, 2016 (in millions) Pre-tax amount Tax (expense) benefit After-tax amount Pre-tax amount Tax (expense) benefit After-tax amount Foreign currency translation: Foreign currency translation adjustments arising during the period (a) $ 566 $ 175 $ 741 $ (223 ) $ (210 ) $ (433 ) Total foreign currency translation 566 175 741 (223 ) (210 ) (433 ) Unrealized gain (loss) on assets available-for-sale: Unrealized gain (loss) arising during period 357 (144 ) 213 338 (111 ) 227 Reclassification adjustment (b) (29 ) 10 (19 ) (65 ) 22 (43 ) Net unrealized gain (loss) on assets available-for-sale 328 (134 ) 194 273 (89 ) 184 Defined benefit plans: Net gain (loss) arising during the period 3 (1 ) 2 3 (1 ) 2 Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost (b) 74 (25 ) 49 65 (22 ) 43 Total defined benefit plans 77 (26 ) 51 68 (23 ) 45 Unrealized gain (loss) on cash flow hedges: Unrealized hedge gain (loss) arising during period 4 (1 ) 3 (115 ) 38 (77 ) Reclassification adjustment (b) 13 (5 ) 8 110 (37 ) 73 Net unrealized gain (loss) on cash flow hedges 17 (6 ) 11 (5 ) 1 (4 ) Total other comprehensive income (loss) $ 988 $ 9 $ 997 $ 113 $ (321 ) $ (208 ) (a) Includes the impact of hedges of net investments in foreign subsidiaries. See Note 16 for additional information. (b) The reclassification adjustment related to the unrealized gain (loss) on assets available-for-sale is recorded as net securities gains on the Consolidated Income Statement. The amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost is recorded as staff expense on the Consolidated Income Statement. See Note 16 of the Notes to Consolidated Financial Statements for the location of the reclassification adjustment related to cash flow hedges on the Consolidated Income Statement. |
Fair value measurement (Tables)
Fair value measurement (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the financial instruments carried at fair value at Sept. 30, 2017 and Dec. 31, 2016 , by caption on the consolidated balance sheet and by the three-level valuation hierarchy. We have included credit ratings information in certain of the tables because the information indicates the degree of credit risk to which we are exposed, and significant changes in ratings classifications could result in increased risk for us. There were no material transfers between Level 1 and Level 2 during the third quarter of 2017 . Assets measured at fair value on a recurring basis at Sept. 30, 2017 Total carrying (dollar amounts in millions) Level 1 Level 2 Level 3 Netting (a) Available-for-sale securities: U.S. Treasury $ 15,502 $ — $ — $ — $ 15,502 U.S. government agencies — 864 — — 864 Sovereign debt/sovereign guaranteed 74 12,491 — — 12,565 State and political subdivisions — 3,124 — — 3,124 Agency RMBS — 24,431 — — 24,431 Non-agency RMBS — 525 — — 525 Other RMBS — 265 — — 265 Commercial MBS — 965 — — 965 Agency commercial MBS — 9,010 — — 9,010 CLOs — 2,550 — — 2,550 Other asset-backed securities — 1,157 — — 1,157 Equity securities 4 — — — 4 Money market funds (b) 939 — — — 939 Corporate bonds — 1,275 — — 1,275 Other debt securities — 3,151 — — 3,151 Foreign covered bonds 2,284 258 — — 2,542 Non-agency RMBS (c) — 1,185 — — 1,185 Total available-for-sale securities 18,803 61,251 — — 80,054 Trading assets: Debt and equity instruments (b) 433 1,016 — — 1,449 Derivative assets not designated as hedging: Interest rate 3 6,731 — (5,301 ) 1,433 Foreign exchange — 4,879 — (3,120 ) 1,759 Equity and other contracts 1 73 — (49 ) 25 Total derivative assets not designated as hedging 4 11,683 — (8,470 ) 3,217 Total trading assets 437 12,699 — (8,470 ) 4,666 Other assets: Derivative assets designated as hedging: Interest rate — 307 — — 307 Foreign exchange — 37 — — 37 Total derivative assets designated as hedging — 344 — — 344 Other assets (d) 148 184 — — 332 Other assets measured at net asset value (d) 151 Total other assets 148 528 — — 827 Subtotal assets of operations at fair value 19,388 74,478 — (8,470 ) 85,547 Percentage of assets of operations prior to netting 21 % 79 % — % Assets of consolidated investment management funds 398 404 — — 802 Total assets $ 19,786 $ 74,882 $ — $ (8,470 ) $ 86,349 Percentage of total assets prior to netting 21 % 79 % — % Liabilities measured at fair value on a recurring basis at Sept. 30, 2017 Total carrying (dollar amounts in millions) Level 1 Level 2 Level 3 Netting (a) Trading liabilities: Debt and equity instruments $ 684 $ 159 $ — $ — $ 843 Derivative liabilities not designated as hedging: Interest rate 3 6,681 — (5,705 ) 979 Foreign exchange — 4,463 — (3,095 ) 1,368 Equity and other contracts 3 135 — (75 ) 63 Total derivative liabilities not designated as hedging 6 11,279 — (8,875 ) 2,410 Total trading liabilities 690 11,438 — (8,875 ) 3,253 Long-term debt (b) — 369 — — 369 Other liabilities – derivative liabilities designated as hedging: Interest rate — 494 — — 494 Foreign exchange — 318 — — 318 Total other liabilities – derivative liabilities designated as hedging — 812 — — 812 Subtotal liabilities of operations at fair value 690 12,619 — (8,875 ) 4,434 Percentage of liabilities of operations prior to netting 5 % 95 % — % Liabilities of consolidated investment management funds 2 25 — — 27 Total liabilities $ 692 $ 12,644 $ — $ (8,875 ) $ 4,461 Percentage of total liabilities prior to netting 5 % 95 % — % (a) ASC 815, Derivatives and Hedging, permits the netting of derivative receivables and derivative payables under legally enforceable master netting agreements and permits the netting of cash collateral. Netting is applicable to derivatives not designated as hedging instruments included in trading assets or trading liabilities, and derivatives designated as hedging instruments included in other assets or other liabilities. Netting is allocated to the derivative products based on the net fair value of each product. (b) Includes certain interests in securitizations. (c) Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. (d) Includes private equity investments and seed capital. Assets measured at fair value on a recurring basis at Dec. 31, 2016 Total carrying value (dollar amounts in millions) Level 1 Level 2 Level 3 Netting (a) Available-for-sale securities: U.S. Treasury $ 14,307 $ — $ — $ — $ 14,307 U.S. government agencies — 359 — — 359 Sovereign debt/sovereign guaranteed 66 12,423 — — 12,489 State and political subdivisions — 3,378 — — 3,378 Agency RMBS — 22,736 — — 22,736 Non-agency RMBS — 638 — — 638 Other RMBS — 513 — — 513 Commercial MBS — 928 — — 928 Agency commercial MBS — 6,449 — — 6,449 CLOs — 2,598 — — 2,598 Other asset-backed securities — 1,727 — — 1,727 Equity securities 3 — — — 3 Money market funds (b) 842 — — — 842 Corporate bonds — 1,396 — — 1,396 Other debt securities — 1,961 — — 1,961 Foreign covered bonds 1,876 265 — — 2,141 Non-agency RMBS (c) — 1,357 — — 1,357 Total available-for-sale securities 17,094 56,728 — — 73,822 Trading assets: Debt and equity instruments (b) 240 2,013 — — 2,253 Derivative assets not designated as hedging: Interest rate 4 7,583 — (6,047 ) 1,540 Foreign exchange — 6,104 — (4,172 ) 1,932 Equity and other contracts — 46 — (38 ) 8 Total derivative assets not designated as hedging 4 13,733 — (10,257 ) 3,480 Total trading assets 244 15,746 — (10,257 ) 5,733 Other assets : Derivative assets designated as hedging: Interest rate — 415 — — 415 Foreign exchange — 369 — — 369 Total derivative assets designated as hedging — 784 — — 784 Other assets (d) 268 73 — — 341 Other assets measured at net asset value (d) 214 Total other assets 268 857 — — 1,339 Subtotal assets of operations at fair value 17,606 73,331 — (10,257 ) 80,894 Percentage of assets of operations prior to netting 19 % 81 % — % Assets of consolidated investment management funds 464 767 — — 1,231 Total assets $ 18,070 $ 74,098 $ — $ (10,257 ) $ 82,125 Percentage of total assets prior to netting 20 % 80 % — % Liabilities measured at fair value on a recurring basis at Dec. 31, 2016 Total carrying value (dollar amounts in millions) Level 1 Level 2 Level 3 Netting (a) Trading liabilities: Debt and equity instruments $ 349 $ 236 $ — $ — $ 585 Derivative liabilities not designated as hedging: Interest rate 4 7,629 — (6,634 ) 999 Foreign exchange — 6,103 — (3,363 ) 2,740 Equity and other contracts — 115 — (50 ) 65 Total derivative liabilities not designated as hedging 4 13,847 — (10,047 ) 3,804 Total trading liabilities 353 14,083 — (10,047 ) 4,389 Long-term debt ( b ) — 363 — — 363 Other liabilities – derivative liabilities designated as hedging: Interest rate — 545 — — 545 Foreign exchange — 52 — — 52 Total other liabilities – derivative liabilities designated as hedging — 597 — — 597 Subtotal liabilities of operations at fair value 353 15,043 — (10,047 ) 5,349 Percentage of liabilities of operations prior to netting 2 % 98 % — % Liabilities of consolidated investment management funds 3 312 — — 315 Total liabilities $ 356 $ 15,355 $ — $ (10,047 ) $ 5,664 Percentage of total liabilities prior to netting 2 % 98 % — % (a) ASC 815, Derivatives and Hedging, permits the netting of derivative receivables and derivative payables under legally enforceable master netting agreements and permits the netting of cash collateral. Netting is applicable to derivatives not designated as hedging instruments included in trading assets or trading liabilities, and derivatives designated as hedging instruments included in other assets or other liabilities. Netting is allocated to the derivative products based on the net fair value of each product. (b) Includes certain interests in securitizations. (c) Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. (d) Includes private equity investments and seed capital. |
Details Of Certain Items Measured At Fair Value on Recurring Basis | Details of certain items measured at fair value on a recurring basis Sept. 30, 2017 Dec. 31, 2016 Total carrying value (b) Ratings (a) Total carrying value (b) Ratings (a) AAA/ AA- A+/ A- BBB+/ BBB- BB+ and lower AAA/ AA- A+/ A- BBB+/ BBB- BB+ and lower (dollar amounts in millions) Non-agency RMBS, originated in: 2007 $ 42 — % — % — % 100 % $ 58 — % — % — % 100 % 2006 85 — — — 100 98 — — — 100 2005 152 20 3 18 59 180 23 5 9 63 2004 and earlier 246 4 2 27 67 302 5 3 24 68 Total non-agency RMBS $ 525 8 % 2 % 14 % 76 % $ 638 9 % 3 % 14 % 74 % Commercial MBS - Domestic, originated in: 2009-2017 $ 909 89 % 11 % — % — % $ 674 84 % 16 % — % — % 2008 5 100 — — — 14 100 — — — 2007 — — — — — 190 71 29 — — 2006 — — — — — 3 7 93 — — Total commercial MBS - Domestic $ 914 89 % 11 % — % — % $ 881 81 % 19 % — % — % Foreign covered bonds: Canada $ 1,648 100 % — % — % — % $ 1,320 100 % — % — % — % Australia 261 100 — — — 40 100 — — — Netherlands 177 100 — — — 160 100 — — — United Kingdom 136 100 — — — 280 100 — — — Other 320 100 — — — 341 100 — — — Total foreign covered bonds $ 2,542 100 % — % — % — % $ 2,141 100 % — % — % — % European floating rate notes - available-for-sale: United Kingdom $ 204 87 % 13 % — % — % $ 379 90 % 10 % — % — % Netherlands 113 37 63 — — 125 100 — — — Ireland — — — — — 58 — — 100 — Total European floating rate notes - available-for-sale $ 317 69 % 31 % — % — % $ 562 83 % 7 % 10 % — % Sovereign debt/sovereign guaranteed: United Kingdom $ 3,036 100 % — % — % — % $ 3,209 100 % — % — % — % France 1,993 100 — — — 1,998 100 — — — Spain 1,740 — — 100 — 1,749 — — 100 — Germany 1,688 100 — — — 1,347 100 — — — Italy 1,169 — — 100 — 1,130 — — 100 — Netherlands 1,016 100 — — — 1,061 100 — — — Ireland 832 — 100 — — 736 — 100 — — Belgium 809 100 — — — 1,005 100 — — — Other (c) 282 48 3 — 49 254 71 — — 29 Total sovereign debt/sovereign guaranteed $ 12,565 69 % 7 % 23 % 1 % $ 12,489 70 % 6 % 23 % 1 % Non-agency RMBS (d) , originated in: 2007 $ 337 — % — % — % 100 % $ 387 — % — % — % 100 % 2006 345 — — — 100 391 — — — 100 2005 387 1 1 1 97 437 — 2 1 97 2004 and earlier 116 2 2 22 74 142 2 2 17 79 Total non-agency RMBS (d) $ 1,185 — % 1 % 3 % 96 % $ 1,357 — % 1 % 2 % 97 % (a) Represents ratings by S&P, or the equivalent. (b) At Sept. 30, 2017 and Dec. 31, 2016 , foreign covered bonds and sovereign debt/sovereign guaranteed securities were included in Level 1 and Level 2 in the valuation hierarchy. All other assets in the table are Level 2 assets in the valuation hierarchy. (c) Includes noninvestment grade sovereign debt/sovereign guaranteed securities related to Brazil of $140 million at Sept. 30, 2017 and $73 million at Dec. 31, 2016 . (d) Previously included in the Grantor Trust. The Grantor Trust was dissolved in 2011. |
Unobservable Input Reconciliation of Assets and Liabilities Measured on a Recurring Basis | The table below includes a roll forward of the balance sheet amount for the three and nine months ended Sept. 30, 2016 (including the change in fair value), for financial instruments classified in Level 3 of the valuation hierarchy. Fair value measurements for assets using significant unobservable inputs Loans (in millions) 3Q16 YTD16 Fair value at the beginning of the period $ 101 $ — Transfers into Level 3 — 19 Total gains for the period included in earnings (a) — 2 Purchases and sales: Purchases — 113 Issuances 1 1 Sales (102 ) (135 ) Fair value at Sept. 30, 2016 $ — $ — Change in unrealized gains for the period included in earnings for assets held at the end of the reporting period $ — $ — (a) Reported in investment and other income. |
Assets Measured at Fair Value on Nonrecurring Basis | The following tables present the financial instruments carried on the consolidated balance sheet by caption and by level in the fair value hierarchy as of Sept. 30, 2017 and Dec. 31, 2016 , for which a nonrecurring change in fair value has been recorded during the quarters ended Sept. 30, 2017 and Dec. 31, 2016 . Assets measured at fair value on a nonrecurring basis at Sept. 30, 2017 Total carrying value (in millions) Level 1 Level 2 Level 3 Loans (a) $ — $ 75 $ 7 $ 82 Other assets (b) — 4 — 4 Total assets at fair value on a nonrecurring basis $ — $ 79 $ 7 $ 86 Assets measured at fair value on a nonrecurring basis at Dec. 31, 2016 Total carrying value (in millions) Level 1 Level 2 Level 3 Loans (a) $ — $ 84 $ 7 $ 91 Other assets (b) — 4 — 4 Total assets at fair value on a nonrecurring basis $ — $ 88 $ 7 $ 95 (a) During the quarters ended Sept. 30, 2017 and Dec. 31, 2016 , the fair value of these loans decreased less than $1 million and $1 million , respectively, based on the fair value of the underlying collateral based on guidance in ASC 310, Receivables, with an offset to the allowance for credit losses. (b) Includes other assets received in satisfaction of debt. |
Summary of Financial Instruments Not Carried at Fair Value | The following tables present the estimated fair value and the carrying amount of financial instruments not carried at fair value on the consolidated balance sheet at Sept. 30, 2017 and Dec. 31, 2016 , by caption on the consolidated balance sheet and by the valuation hierarchy. See Note 18 of the Notes to Consolidated Financial Statements in our 2016 Annual Report for additional information regarding the financial instruments within the scope of this disclosure, and the methods and significant assumptions used to estimate their fair value. Summary of financial instruments Sept. 30, 2017 (in millions) Level 1 Level 2 Level 3 Total estimated fair value Carrying amount Assets: Interest-bearing deposits with the Federal Reserve and other central banks $ — $ 75,808 $ — $ 75,808 $ 75,808 Interest-bearing deposits with banks — 15,254 — 15,254 15,256 Federal funds sold and securities purchased under resale agreements — 27,883 — 27,883 27,883 Securities held-to-maturity 9,943 29,985 — 39,928 39,995 Loans (a) — 57,709 — 57,709 57,562 Other financial assets 5,557 1,169 — 6,726 6,726 Total $ 15,500 $ 207,808 $ — $ 223,308 $ 223,230 Liabilities: Noninterest-bearing deposits $ — $ 80,380 $ — $ 80,380 $ 80,380 Interest-bearing deposits — 148,967 — 148,967 150,616 Federal funds purchased and securities sold under repurchase agreements — 10,314 — 10,314 10,314 Payables to customers and broker-dealers — 21,176 — 21,176 21,176 Commercial paper — 2,501 — 2,501 2,501 Borrowings — 3,544 — 3,544 3,544 Long-term debt — 28,335 — 28,335 28,039 Total $ — $ 295,217 $ — $ 295,217 $ 296,570 (a) Does not include the leasing portfolio. Summary of financial instruments Dec. 31, 2016 (in millions) Level 1 Level 2 Level 3 Total estimated Carrying Assets: Interest-bearing deposits with the Federal Reserve and other central banks $ — $ 58,041 $ — $ 58,041 $ 58,041 Interest-bearing deposits with banks — 15,091 — 15,091 15,086 Federal funds sold and securities purchased under resale agreements — 25,801 — 25,801 25,801 Securities held-to-maturity 11,173 29,496 — 40,669 40,905 Loans (a) — 62,829 — 62,829 62,564 Other financial assets 4,822 1,112 — 5,934 5,934 Total $ 15,995 $ 192,370 $ — $ 208,365 $ 208,331 Liabilities: Noninterest-bearing deposits $ — $ 78,342 $ — $ 78,342 $ 78,342 Interest-bearing deposits — 141,418 — 141,418 143,148 Federal funds purchased and securities sold under repurchase agreements — 9,989 — 9,989 9,989 Payables to customers and broker-dealers — 20,987 — 20,987 20,987 Borrowings — 960 — 960 960 Long-term debt — 24,184 — 24,184 24,100 Total $ — $ 275,880 $ — $ 275,880 $ 277,526 (a) Does not include the leasing portfolio. |
Summary of the Carrying Amount, Notional Amount and Unrealized Gain (Loss) of Hedged Financial Instruments | The table below summarizes the carrying amount of the hedged financial instruments, the notional amount of the hedge and the unrealized gain (loss) (estimated fair value) of the derivatives. Hedged financial instruments Carrying amount Notional amount of hedge Unrealized (in millions) Gain (Loss) Sept. 30, 2017 Securities available-for-sale $ 12,416 $ 12,333 $ 56 $ (337 ) Long-term debt 24,249 24,200 249 (157 ) Dec. 31, 2016 Securities available-for-sale $ 9,184 $ 9,233 $ 83 $ (342 ) Long-term debt 20,511 20,450 330 (203 ) |
Fair value option (Tables)
Fair value option (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities, by Type, of Consolidated Investment Management Funds Recorded at Fair Value | The following table presents the assets and liabilities, by type, of consolidated investment management funds recorded at fair value. Assets and liabilities of consolidated investment management funds, at fair value Sept. 30, 2017 Dec. 31, 2016 (in millions) Assets of consolidated investment management funds: Trading assets $ 576 $ 979 Other assets 226 252 Total assets of consolidated investment management funds $ 802 $ 1,231 Liabilities of consolidated investment management funds: Trading liabilities $ — $ 282 Other liabilities 27 33 Total liabilities of consolidated investment management funds $ 27 $ 315 |
Changes in Fair Value of the Loans and Long-Term Debt and the Location of the Changes | The following table presents the changes in fair value of long-term debt and certain loans for which we elected the fair value option that we previously held in 2016, and the location of the changes in the income statement. Impact of changes in fair value in the income statement (a) (in millions) 3Q17 2Q17 3Q16 YTD17 YTD16 Loans: Investment and other income $ — $ — $ (1 ) $ — $ 13 Long-term debt: Foreign exchange and other trading revenue $ (1 ) $ (4 ) $ 2 $ (6 ) $ (17 ) (a) The changes in fair value of the loans and long-term debt are approximately offset by economic hedges included in foreign exchange and other trading revenue. |
Derivative instruments (Tables)
Derivative instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Ineffectiveness Related to Derivatives and Hedging Relationships Recorded in Income | Ineffectiveness related to derivatives and hedging relationships was recorded in income as follows: Ineffectiveness Nine months ended (in millions) Sept. 30, 2017 Sept. 30, 2016 Fair value hedges of securities $ (13.3 ) $ (5.4 ) Fair value hedges of long-term debt 0.1 (23.0 ) Cash flow hedges — — Other (a) — — Total $ (13.2 ) $ (28.4 ) (a) Includes ineffectiveness recorded on foreign exchange hedges. |
Impact of Derivative Instruments on the Balance Sheet | The following table summarizes the notional amount and credit exposure of our total derivative portfolio at Sept. 30, 2017 and Dec. 31, 2016 . Impact of derivative instruments on the balance sheet Notional value Asset derivatives fair value Liability derivatives fair value (in millions) Sept. 30, 2017 Dec. 31, 2016 Sept. 30, 2017 Dec. 31, 2016 Sept. 30, 2017 Dec. 31, 2016 Derivatives designated as hedging instruments: (a) Interest rate contracts $ 36,533 $ 29,683 $ 307 $ 415 $ 494 $ 545 Foreign exchange contracts 8,399 7,796 37 369 318 52 Total derivatives designated as hedging instruments $ 344 $ 784 $ 812 $ 597 Derivatives not designated as hedging instruments: (b) Interest rate contracts $ 283,384 $ 325,412 $ 6,734 $ 7,587 $ 6,684 $ 7,633 Foreign exchange contracts 639,336 530,729 4,879 6,104 4,463 6,103 Equity contracts 1,354 1,167 74 46 134 112 Credit contracts 180 160 — — 4 3 Total derivatives not designated as hedging instruments $ 11,687 $ 13,737 $ 11,285 $ 13,851 Total derivatives fair value (c) $ 12,031 $ 14,521 $ 12,097 $ 14,448 Effect of master netting agreements (d) (8,470 ) (10,257 ) (8,875 ) (10,047 ) Fair value after effect of master netting agreements $ 3,561 $ 4,264 $ 3,222 $ 4,401 (a) The fair value of asset derivatives and liability derivatives designated as hedging instruments is recorded as other assets and other liabilities, respectively, on the balance sheet. (b) The fair value of asset derivatives and liability derivatives not designated as hedging instruments is recorded as trading assets and trading liabilities, respectively, on the balance sheet. (c) Fair values are on a gross basis, before consideration of master netting agreements, as required by ASC 815, Derivatives and Hedging. (d) Effect of master netting agreements includes cash collateral received and paid of $834 million and $1,239 million , respectively, at Sept. 30, 2017 , and $1,119 million and $909 million , respectively, at Dec. 31, 2016 . |
Impact of Derivative Instruments in the Income Statement | The following tables present the impact of derivative instruments used in fair value, cash flow and net investment hedging relationships in the income statement. Impact of derivative instruments in the income statement (in millions) Derivatives in fair value hedging relationships Location of gain or (loss) recognized in income on derivatives Gain or (loss) recognized in income on derivatives Location of gain or (loss) recognized in income on hedged item Gain or (loss) recognized in hedged item 3Q17 2Q17 3Q16 3Q17 2Q17 3Q16 Interest rate contracts Net interest revenue $ (33 ) $ 2 $ (174 ) Net interest revenue $ 31 $ (9 ) $ 168 Derivatives in cash flow hedging relationships Gain or (loss) recognized in accumulated OCI on derivatives (effective portion) Location of gain or (loss) reclassified from accumulated OCI into income (effective portion) Gain or (loss) reclassified from accumulated OCI into income (effective portion) Location of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) 3Q17 2Q17 3Q16 3Q17 2Q17 3Q16 3Q17 2Q17 3Q16 FX contracts $ — $ — $ (7 ) Net interest revenue $ — $ — $ (6 ) Net interest revenue $ — $ — $ — FX contracts 3 (1 ) — Other revenue — — — Other revenue — — — FX contracts (1 ) — (19 ) Trading revenue (1 ) — (19 ) Trading revenue — — — FX contracts (4 ) (7 ) 2 Salary expense (2 ) (9 ) (3 ) Salary expense — — — Total $ (2 ) $ (8 ) $ (24 ) $ (3 ) $ (9 ) $ (28 ) $ — $ — $ — Derivatives in net investment hedging relationships Gain or (loss) recognized in accumulated OCI on derivatives (effective portion) Location of gain or (loss) reclassified from accumulated OCI into income (effective portion) Gain or (loss) reclassified from accumulated OCI into income (effective portion) Location of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) 3Q17 2Q17 3Q16 3Q17 2Q17 3Q16 3Q17 2Q17 3Q16 FX contracts $ (206 ) $ (274 ) $ 47 Net interest revenue $ — $ — $ — Other revenue $ — $ — $ — Impact of derivative instruments in the income statement (in millions) Derivatives in fair value hedging relationships Location of gain or (loss) recognized in income on derivatives Gain or (loss) recognized in income on derivatives Location of gain or (loss) recognized in income on hedged item Gain or (loss) recognized in hedged item YTD17 YTD16 YTD17 YTD16 Interest rate contracts Net interest revenue $ (21 ) $ (445 ) Net interest revenue $ 8 $ 417 Derivatives in cash flow hedging relationships Gain or (loss) recognized in accumulated OCI on derivatives (effective portion) Location of gain or (loss) reclassified from accumulated OCI into income (effective portion) Gain or (loss) reclassified from accumulated OCI into income (effective portion) Location of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) YTD17 YTD16 YTD17 YTD16 YTD17 YTD16 FX contracts $ — $ (16 ) Net interest revenue $ — $ (16 ) Net interest revenue $ — $ — FX contracts 2 — Other revenue — — Other revenue — — FX contracts 2 (89 ) Trading revenue 2 (89 ) Trading revenue — — FX contracts — (10 ) Salary expense (15 ) (5 ) Salary expense — — Total $ 4 $ (115 ) $ (13 ) $ (110 ) $ — $ — Derivatives in net investment hedging relationships Gain or (loss) recognized in accumulated OCI on derivatives (effective portion) Location of gain or (loss) reclassified from accumulated OCI into income (effective portion) Gain or (loss) reclassified from accumulated OCI into income (effective portion) Location of gain or (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) YTD17 YTD16 YTD17 YTD16 YTD17 YTD16 FX contracts $ (576 ) $ 320 Net interest revenue $ — $ — Other revenue $ — $ — |
Revenue from Foreign Exchange and Other Trading | The following table presents our foreign exchange and other trading revenue. Foreign exchange and other trading revenue (in millions) 3Q17 2Q17 3Q16 YTD17 YTD16 Foreign exchange $ 158 $ 151 $ 175 $ 463 $ 512 Other trading revenue 15 14 8 39 28 Total foreign exchange and other trading revenue $ 173 $ 165 $ 183 $ 502 $ 540 |
Fair Value of Derivative Contracts Falling under Early Termination Provisions that were in Net Liability Position | The following table shows the fair value of contracts falling under early termination provisions that were in net liability positions as of Sept. 30, 2017 for three key ratings triggers. If The Bank of New York Mellon’s rating was changed to (Moody’s/S&P) Potential close-out exposures (fair value) (a) A3/A- $ 92 million Baa2/BBB $ 430 million Ba1/BB+ $ 1,899 million (a) The amounts represent potential total close-out values if The Bank of New York Mellon’s rating were to immediately drop to the indicated levels. |
Offsetting Assets | The following tables present derivative instruments and financial instruments that are either subject to an enforceable netting agreement or offset by collateral arrangements. There were no derivative instruments or financial instruments subject to a legally enforceable netting agreement for which we are not currently netting. Offsetting of derivative assets and financial assets at Sept. 30, 2017 Gross assets recognized Gross amounts offset in the balance sheet Net assets recognized on the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral received Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 6,182 $ 5,301 $ 881 $ 189 $ — $ 692 Foreign exchange contracts 4,281 3,120 1,161 82 — 1,079 Equity and other contracts 69 49 20 — — 20 Total derivatives subject to netting arrangements 10,532 8,470 2,062 271 — 1,791 Total derivatives not subject to netting arrangements 1,499 — 1,499 — — 1,499 Total derivatives 12,031 8,470 3,561 271 — 3,290 Reverse repurchase agreements 36,118 19,171 (b) 16,947 16,890 — 57 Securities borrowing 10,936 — 10,936 10,627 — 309 Total $ 59,085 $ 27,641 $ 31,444 $ 27,788 $ — $ 3,656 (a) Includes the effect of netting agreements and net cash collateral received. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions. (b) Offsetting of reverse repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. Offsetting of derivative assets and financial assets at Dec. 31, 2016 Gross assets recognized Gross amounts offset in the balance sheet Net assets recognized on the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral received Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 7,205 $ 6,047 $ 1,158 $ 321 $ — $ 837 Foreign exchange contracts 5,265 4,172 1,093 202 — 891 Equity and other contracts 44 38 6 — — 6 Total derivatives subject to netting arrangements 12,514 10,257 2,257 523 — 1,734 Total derivatives not subject to netting arrangements 2,007 — 2,007 — — 2,007 Total derivatives 14,521 10,257 4,264 523 — 3,741 Reverse repurchase agreements 17,588 481 (b) 17,107 17,104 — 3 Securities borrowing 8,694 — 8,694 8,425 — 269 Total $ 40,803 $ 10,738 $ 30,065 $ 26,052 $ — $ 4,013 (a) Includes the effect of netting agreements and net cash collateral received. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions. (b) Offsetting of reverse repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. |
Offsetting Liabilities | Offsetting of derivative liabilities and financial liabilities at Sept. 30, 2017 Net liabilities recognized on the balance sheet Gross liabilities recognized Gross amounts offset in the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral pledged Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 7,103 $ 5,705 $ 1,398 $ 1,311 $ — $ 87 Foreign exchange contracts 4,074 3,095 979 234 — 745 Equity and other contracts 130 75 55 49 — 6 Total derivatives subject to netting arrangements 11,307 8,875 2,432 1,594 — 838 Total derivatives not subject to netting arrangements 790 — 790 — — 790 Total derivatives 12,097 8,875 3,222 1,594 — 1,628 Repurchase agreements 27,321 19,171 (b) 8,150 8,149 — 1 Securities lending 1,904 — 1,904 1,812 — 92 Total $ 41,322 $ 28,046 $ 13,276 $ 11,555 $ — $ 1,721 (a) Includes the effect of netting agreements and net cash collateral paid. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions. (b) Offsetting of repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. Offsetting of derivative liabilities and financial liabilities at Dec. 31, 2016 Net liabilities recognized on the balance sheet Gross liabilities recognized Gross amounts offset in the balance sheet Gross amounts not offset in the balance sheet (in millions) (a) Financial instruments Cash collateral pledged Net amount Derivatives subject to netting arrangements: Interest rate contracts $ 8,116 $ 6,634 $ 1,482 $ 1,266 $ — $ 216 Foreign exchange contracts 4,957 3,363 1,594 355 — 1,239 Equity and other contracts 104 50 54 54 — — Total derivatives subject to netting arrangements 13,177 10,047 3,130 1,675 — 1,455 Total derivatives not subject to netting arrangements 1,271 — 1,271 — — 1,271 Total derivatives 14,448 10,047 4,401 1,675 — 2,726 Repurchase agreements 8,703 481 (b) 8,222 8,222 — — Securities lending 1,615 — 1,615 1,522 — 93 Total $ 24,766 $ 10,528 $ 14,238 $ 11,419 $ — $ 2,819 (a) Includes the effect of netting agreements and net cash collateral paid. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions. (b) Offsetting of repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system. |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | The following tables present the contract value of repurchase agreements and securities lending transactions accounted for as secured borrowings by the type of collateral provided to counterparties. Repurchase agreements and securities lending transactions accounted for as secured borrowings at Sept. 30, 2017 Remaining contractual maturity of the agreements (in millions) Overnight and continuous Up to 30 days 30 days or more Total Repurchase agreements: U.S. Treasury $ 21,432 $ — $ — $ 21,432 U.S. government agencies 489 110 — 599 Agency RMBS 1,798 190 — 1,988 Corporate bonds 282 — 940 1,222 Other debt securities 254 — 871 1,125 Equity securities 466 — 489 955 Total $ 24,721 $ 300 $ 2,300 $ 27,321 Securities lending: U.S. government agencies $ 15 $ — $ — $ 15 Other debt securities 477 — — 477 Equity securities 1,412 — — 1,412 Total $ 1,904 $ — $ — $ 1,904 Total borrowings $ 26,625 $ 300 $ 2,300 $ 29,225 Repurchase agreements and securities lending transactions accounted for as secured borrowings at Dec. 31, 2016 Remaining contractual maturity of the agreements (in millions) Overnight and continuous Up to 30 days 30 days or more Total Repurchase agreements: U.S. Treasury $ 2,488 $ 4 $ — $ 2,492 U.S. government agencies 396 10 — 406 Agency RMBS 3,294 386 — 3,680 Corporate bonds 304 — 694 998 Other debt securities 146 — 563 709 Equity securities 375 — 43 418 Total $ 7,003 $ 400 $ 1,300 $ 8,703 Securities lending: U.S. government agencies $ 39 $ — $ — $ 39 Other debt securities 477 — — 477 Equity securities 1,099 — — 1,099 Total $ 1,615 $ — $ — $ 1,615 Total borrowings $ 8,618 $ 400 $ 1,300 $ 10,318 |
Commitments and contingent li43
Commitments and contingent liabilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Off-Balance Sheet Credit Risks, Net of Participations | The following table presents a summary of our off-balance sheet credit risks. Off-balance sheet credit risks Sept. 30, 2017 Dec. 31, 2016 (in millions) Lending commitments $ 49,983 $ 51,270 Standby letters of credit (a) 3,619 4,185 Commercial letters of credit 265 339 Securities lending indemnifications (b) 406,434 317,690 (a) Net of participations totaling $681 million at Sept. 30, 2017 and $662 million at Dec. 31, 2016 . (b) Excludes the indemnification for securities for which BNY Mellon acts as an agent on behalf of CIBC Mellon clients, which totaled $65 billion at Sept. 30, 2017 and $61 billion at Dec. 31, 2016 . |
Standby Letters of Credits by Investment Grade | The table below shows SBLCs by investment grade: Standby letters of credit Sept. 30, 2017 Dec. 31, 2016 Investment grade 86 % 89 % Non-investment grade 14 % 11 % |
Significant Industry Concentrations Related to Credit Exposure | The tables below present our credit exposure in the financial institutions and commercial portfolios. Financial institutions portfolio exposure (in billions) Sept. 30, 2017 Loans Unfunded commitments Total exposure Securities industry $ 2.9 $ 19.0 $ 21.9 Asset managers 1.6 6.5 8.1 Banks 6.3 1.4 7.7 Insurance 0.1 3.4 3.5 Government — 1.0 1.0 Other 1.0 1.4 2.4 Total $ 11.9 $ 32.7 $ 44.6 Commercial portfolio exposure (in billions) Sept. 30, 2017 Loans Unfunded commitments Total exposure Manufacturing $ 1.4 $ 6.3 $ 7.7 Services and other 0.9 4.4 5.3 Energy and utilities 0.6 4.5 5.1 Media and telecom 0.1 1.4 1.5 Total $ 3.0 $ 16.6 $ 19.6 |
Lines of business (Tables)
Lines of business (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Contribution of Segments to Overall Profitability | The following consolidating schedules presents the contribution of our businesses to our overall profitability. For the quarter ended Sept. 30, 2017 Investment Investment Other Consolidated (dollar amounts in millions) Fee and other revenue $ 918 (a) $ 2,187 $ 69 $ 3,174 (a) Net interest revenue (expense) 82 777 (20 ) 839 Total revenue 1,000 (a) 2,964 49 4,013 (a) Provision for credit losses (2 ) (2 ) (2 ) (6 ) Noninterest expense 702 1,874 77 2,653 (b) Income (loss) before taxes $ 300 (a) $ 1,092 $ (26 ) $ 1,366 (a)(b) Pre-tax operating margin (c) 30 % 37 % N/M 34 % Average assets $ 31,689 $ 252,461 $ 61,559 $ 345,709 (a) Both fee and other revenue and total revenue include the net income from consolidated investment management funds of $7 million representing $10 million of income and noncontrolling interests of $3 million . Income before taxes is net of noncontrolling interests of $3 million . (b) Noninterest expense includes a loss attributable to noncontrolling interest of $1 million related to other consolidated subsidiaries. (c) Income before taxes divided by total revenue. N/M - Not meaningful. For the quarter ended June 30, 2017 Investment Management Investment Services Other Consolidated (dollar amounts in millions) Fee and other revenue $ 899 (a) $ 2,115 $ 113 $ 3,127 (a) Net interest revenue (expense) 87 761 (22 ) 826 Total revenue 986 (a) 2,876 91 3,953 (a) Provision for credit losses — (3 ) (4 ) (7 ) Noninterest expense 698 1,927 28 2,653 (b) Income before taxes $ 288 (a) $ 952 $ 67 $ 1,307 (a)(b) Pre-tax operating margin (c) 29 % 33 % N/M 33 % Average assets $ 31,355 $ 254,724 $ 56,436 $ 342,515 (a) Both fee and other revenue and total revenue include the net income from consolidated investment management funds of $ 7 million , representing $10 million of income and noncontrolling interests of $3 million. Income before taxes is net of noncontrolling interests of $3 million. (b) Noninterest expense includes a loss attributable to noncontrolling interest of $ 2 million related to other consolidated subsidiaries. (c) Income before taxes divided by total revenue. N/M - Not meaningful. For the quarter ended Sept. 30, 2016 Investment Investment Other Consolidated (dollar amounts in millions) Fee and other revenue $ 876 (a) $ 2,183 $ 100 $ 3,159 (a) Net interest revenue (expense) 82 715 (23 ) 774 Total revenue 958 (a) 2,898 77 3,933 (a) Provision for credit losses — 1 (20 ) (19 ) Noninterest expense 702 1,851 88 2,641 (b) Income before taxes $ 256 (a) $ 1,046 $ 9 $ 1,311 (a)(b) Pre-tax operating margin (c) 27 % 36 % N/M 33 % Average assets $ 30,392 $ 275,714 $ 45,124 $ 351,230 (a) Both fee and other revenue and total revenue include net income from consolidated investment management funds of $ 8 million , representing $17 million of income and noncontrolling interests of $9 million. Income before taxes is net of noncontrolling interests of $9 million. (b) Noninterest expense includes a loss attributable to noncontrolling interest of $ 2 million related to other consolidated subsidiaries. (c) Income before taxes divided by total revenue. N/M - Not meaningful. For the nine months ended Sept. 30, 2017 Investment Investment Other Consolidated (dollar amounts in millions) Fee and other revenue $ 2,694 (a) $ 6,386 $ 254 $ 9,334 (a) Net interest revenue (expense) 255 2,245 (43 ) 2,457 Total revenue 2,949 (a) 8,631 211 11,791 (a) Provision for credit losses 1 (5 ) (14 ) (18 ) Noninterest expense 2,083 5,650 212 7,945 (b) Income before taxes $ 865 (a) $ 2,986 $ 13 $ 3,864 (a)(b) Pre-tax operating margin (c) 29 % 35 % N/M 33 % Average assets $ 31,372 $ 252,675 $ 57,463 $ 341,510 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of $29 million , representing $53 million of income and noncontrolling interests of $24 million . Income before taxes is net of noncontrolling interests of $24 million . (b) Noninterest expense includes a loss attributable to noncontrolling interest of $6 million related to other consolidated subsidiaries. (c) Income before taxes divided by total revenue. N/M - Not meaningful. For the nine months ended Sept. 30, 2016 Investment Investment Other Consolidated (dollar amounts in millions) Fee and other revenue $ 2,544 (a) $ 6,267 $ 324 $ 9,135 (a) Net interest revenue (expense) 247 2,084 (24 ) 2,307 Total revenue 2,791 (a) 8,351 300 11,442 (a) Provision for credit losses — 8 (26 ) (18 ) Noninterest expense 2,084 5,518 284 7,886 (b) Income before taxes $ 707 (a) $ 2,825 $ 42 $ 3,574 (a)(b) Pre-tax operating margin (c) 25 % 34 % N/M 31 % Average assets $ 30,048 $ 275,410 $ 57,832 $ 363,290 (a) Both total fee and other revenue and total revenue include net income from consolidated investment management funds of $15 million , representing $21 million of income and noncontrolling interests of $6 million . Income before taxes is net of a loss attributable to noncontrolling interests of $6 million . (b) Noninterest expense includes a loss attributable to noncontrolling interest of $6 million related to other consolidated subsidiaries. (c) Income before taxes divided by total revenue. N/M - Not meaningful. |
Supplemental information to t45
Supplemental information to the Consolidated Statement of Cash Flows (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Noncash Investing and Financing Transactions that are Not Reflected in Consolidated Statement of Cash Flows | Noncash investing and financing transactions that, appropriately, are not reflected in the Consolidated Statement of Cash Flows are listed below. Noncash investing and financing transactions Nine months ended Sept. 30, (in millions) 2017 2016 Transfers from loans to other assets for other real estate owned (“OREO”) $ 3 $ 4 Change in assets of consolidated VIEs 429 392 Change in liabilities of consolidated VIEs 288 14 Change in nonredeemable noncontrolling interests of consolidated investment management funds 234 238 Securities purchased not settled 1,277 229 Securities sales not settled — 218 Securities matured not settled 350 — Held-to-maturity securities transferred to available-for-sale 74 10 Premises and equipment/capitalized software funded by capital lease obligations 347 12 |
Accounting change and new acc46
Accounting change and new accounting guidance (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Benefit for income taxes | $ (348) | $ (332) | $ (324) | $ (949) | $ (897) | |
Diluted (usd per share) | [1] | $ 0.94 | $ 0.88 | $ 0.90 | $ 2.64 | $ 2.38 |
Effective tax rate | 25.40% | 25.40% | 24.60% | |||
ASU 2016-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Benefit for income taxes | $ 45 | |||||
[1] | Basic and diluted earnings per share under the two-class method are determined on the net income applicable to common shareholders of The Bank of New York Mellon Corporation reported on the income statement less earnings allocated to participating securities. |
Acquisitions (Details)
Acquisitions (Details) $ in Millions | Apr. 01, 2016USD ($)high_net_worth_client | Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) |
Business Acquisition [Line Items] | ||||
Contingent payments | $ 2 | $ 2 | ||
Potential obligation to pay additional consideration, lower range | 0 | 0 | ||
Potential obligation to pay additional consideration, upper range | $ 16 | $ 16 | ||
Contingent consideration payment period | 2 years | |||
Acquisitions | ||||
Goodwill | $ 28 | |||
Intangible assets acquired | $ 32 | |||
Atherton Lane Acquisition | ||||
Acquisitions | ||||
Assets under management acquired | $ 2,450 | |||
Approximate number of high net worth clients (in customers) | high_net_worth_client | 700 | |||
Cash paid for assets acquired | $ 38 | |||
Business combination, contingent payments | 22 | |||
Goodwill | $ 29 | |||
Useful life | 14 years | |||
Intangible assets acquired | $ 30 |
Securities - Amortized Cost, Gr
Securities - Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Securities (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | $ 119,487 | $ 114,501 |
Gross unrealized Gains | 1,250 | 1,124 |
Gross unrealized Losses | 755 | 1,134 |
Fair value | 119,982 | 114,491 |
AOCI, transfers from AFS to HTM Securities, gross unrealized gains | 53 | 62 |
AOCI, transfers from AFS to HTM Securities, gross unrealized losses | 155 | 190 |
Available-for-sale | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 79,492 | 73,596 |
Gross unrealized Gains | 1,090 | 997 |
Gross unrealized Losses | 528 | 771 |
Fair value | 80,054 | 73,822 |
Available-for-sale | U.S. Treasury | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 15,389 | 14,373 |
Gross unrealized Gains | 236 | 115 |
Gross unrealized Losses | 123 | 181 |
Fair value | 15,502 | 14,307 |
Available-for-sale | U.S. government agencies | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 866 | 366 |
Gross unrealized Gains | 4 | 2 |
Gross unrealized Losses | 6 | 9 |
Fair value | 864 | 359 |
Available-for-sale | State and political subdivisions | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 3,091 | 3,392 |
Gross unrealized Gains | 57 | 38 |
Gross unrealized Losses | 24 | 52 |
Fair value | 3,124 | 3,378 |
Available-for-sale | Agency RMBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 24,546 | 22,929 |
Gross unrealized Gains | 135 | 148 |
Gross unrealized Losses | 250 | 341 |
Fair value | 24,431 | 22,736 |
Available-for-sale | Non-agency RMBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 491 | 620 |
Gross unrealized Gains | 37 | 31 |
Gross unrealized Losses | 3 | 13 |
Fair value | 525 | 638 |
Available-for-sale | Other RMBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 270 | 517 |
Gross unrealized Gains | 3 | 4 |
Gross unrealized Losses | 8 | 8 |
Fair value | 265 | 513 |
Available-for-sale | Commercial MBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 960 | 931 |
Gross unrealized Gains | 9 | 8 |
Gross unrealized Losses | 4 | 11 |
Fair value | 965 | 928 |
Available-for-sale | Agency commercial MBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 9,026 | 6,505 |
Gross unrealized Gains | 41 | 28 |
Gross unrealized Losses | 57 | 84 |
Fair value | 9,010 | 6,449 |
Available-for-sale | CLOs | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 2,542 | 2,593 |
Gross unrealized Gains | 9 | 6 |
Gross unrealized Losses | 1 | 1 |
Fair value | 2,550 | 2,598 |
Available-for-sale | Other asset-backed securities | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 1,152 | 1,729 |
Gross unrealized Gains | 5 | 4 |
Gross unrealized Losses | 0 | 6 |
Fair value | 1,157 | 1,727 |
Available-for-sale | Foreign covered bonds | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 2,529 | 2,126 |
Gross unrealized Gains | 20 | 24 |
Gross unrealized Losses | 7 | 9 |
Fair value | 2,542 | 2,141 |
Available-for-sale | Corporate bonds | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 1,262 | 1,391 |
Gross unrealized Gains | 21 | 22 |
Gross unrealized Losses | 8 | 17 |
Fair value | 1,275 | 1,396 |
Available-for-sale | Sovereign debt/sovereign guaranteed | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 12,393 | 12,248 |
Gross unrealized Gains | 195 | 261 |
Gross unrealized Losses | 23 | 20 |
Fair value | 12,565 | 12,489 |
Available-for-sale | Other debt securities | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 3,149 | 1,952 |
Gross unrealized Gains | 12 | 19 |
Gross unrealized Losses | 10 | 10 |
Fair value | 3,151 | 1,961 |
Available-for-sale | Equity securities | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 2 | 2 |
Gross unrealized Gains | 2 | 1 |
Gross unrealized Losses | 0 | 0 |
Fair value | 4 | 3 |
Available-for-sale | Money market funds | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 939 | 842 |
Gross unrealized Gains | 0 | 0 |
Gross unrealized Losses | 0 | 0 |
Fair value | 939 | 842 |
Available-for-sale | Non-agency RMBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 885 | 1,080 |
Gross unrealized Gains | 304 | 286 |
Gross unrealized Losses | 4 | 9 |
Fair value | 1,185 | 1,357 |
Held-to-maturity | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 39,995 | 40,905 |
Gross unrealized Gains | 160 | 127 |
Gross unrealized Losses | 227 | 363 |
Fair value | 39,928 | 40,669 |
Held-to-maturity | U.S. Treasury | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 9,867 | 11,117 |
Gross unrealized Gains | 21 | 22 |
Gross unrealized Losses | 29 | 41 |
Fair value | 9,859 | 11,098 |
Held-to-maturity | U.S. government agencies | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 1,614 | 1,589 |
Gross unrealized Gains | 0 | 0 |
Gross unrealized Losses | 6 | 6 |
Fair value | 1,608 | 1,583 |
Held-to-maturity | State and political subdivisions | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 18 | 19 |
Gross unrealized Gains | 0 | 0 |
Gross unrealized Losses | 1 | 1 |
Fair value | 17 | 18 |
Held-to-maturity | Agency RMBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 25,575 | 25,221 |
Gross unrealized Gains | 96 | 57 |
Gross unrealized Losses | 185 | 299 |
Fair value | 25,486 | 24,979 |
Held-to-maturity | Non-agency RMBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 64 | 78 |
Gross unrealized Gains | 5 | 4 |
Gross unrealized Losses | 0 | 2 |
Fair value | 69 | 80 |
Held-to-maturity | Other RMBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 65 | 142 |
Gross unrealized Gains | 0 | 0 |
Gross unrealized Losses | 1 | 4 |
Fair value | 64 | 138 |
Held-to-maturity | Commercial MBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 6 | 7 |
Gross unrealized Gains | 0 | 0 |
Gross unrealized Losses | 0 | 0 |
Fair value | 6 | 7 |
Held-to-maturity | Agency commercial MBS | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 1,118 | 721 |
Gross unrealized Gains | 5 | 1 |
Gross unrealized Losses | 5 | 10 |
Fair value | 1,118 | 712 |
Held-to-maturity | Foreign covered bonds | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 83 | 74 |
Gross unrealized Gains | 1 | 1 |
Gross unrealized Losses | 0 | 0 |
Fair value | 84 | 75 |
Held-to-maturity | Sovereign debt/sovereign guaranteed | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 1,558 | 1,911 |
Gross unrealized Gains | 32 | 42 |
Gross unrealized Losses | 0 | 0 |
Fair value | 1,590 | 1,953 |
Held-to-maturity | Other debt securities | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized cost | 27 | 26 |
Gross unrealized Gains | 0 | 0 |
Gross unrealized Losses | 0 | 0 |
Fair value | $ 27 | $ 26 |
Securities - Net Securities Gai
Securities - Net Securities Gains (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Securities [Abstract] | |||||
Realized gross gains | $ 20 | $ 3 | $ 26 | $ 34 | $ 71 |
Realized gross losses | 0 | (2) | (1) | (2) | (1) |
Recognized gross impairments | (1) | (1) | (1) | (3) | (5) |
Net securities gains | $ 19 | $ 0 | $ 24 | $ 29 | $ 65 |
Securities - Aggregate Fair Val
Securities - Aggregate Fair Value of Investments with Continuous Unrealized Loss Position (Detail) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | $ 53,251,000,000 | $ 60,585,000,000 |
Less than 12 months Unrealized losses | 499,000,000 | 860,000,000 |
12 months or more Fair value | 7,307,000,000 | 4,229,000,000 |
12 months or more Unrealized losses | 256,000,000 | 274,000,000 |
Total Fair value | 60,558,000,000 | 64,814,000,000 |
Total Unrealized losses | 755,000,000 | 1,134,000,000 |
AOCI, transfers from AFS to HTM Securities, gross unrealized losses, greater than 12 months | 155,000,000 | 190,000,000 |
AOCI, transfers from AFS to HTM Securities, gross unrealized losses, less than 12 months | 0 | 0 |
Available-for-sale | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 26,814,000,000 | 32,802,000,000 |
Less than 12 months Unrealized losses | 288,000,000 | 506,000,000 |
12 months or more Fair value | 6,322,000,000 | 3,952,000,000 |
12 months or more Unrealized losses | 240,000,000 | 265,000,000 |
Total Fair value | 33,136,000,000 | 36,754,000,000 |
Total Unrealized losses | 528,000,000 | 771,000,000 |
Available-for-sale | U.S. Treasury | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 7,900,000,000 | 8,489,000,000 |
Less than 12 months Unrealized losses | 111,000,000 | 181,000,000 |
12 months or more Fair value | 495,000,000 | 0 |
12 months or more Unrealized losses | 12,000,000 | 0 |
Total Fair value | 8,395,000,000 | 8,489,000,000 |
Total Unrealized losses | 123,000,000 | 181,000,000 |
Available-for-sale | U.S. government agencies | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 399,000,000 | 257,000,000 |
Less than 12 months Unrealized losses | 6,000,000 | 9,000,000 |
12 months or more Fair value | 0 | 0 |
12 months or more Unrealized losses | 0 | 0 |
Total Fair value | 399,000,000 | 257,000,000 |
Total Unrealized losses | 6,000,000 | 9,000,000 |
Available-for-sale | State and political subdivisions | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 310,000,000 | 1,058,000,000 |
Less than 12 months Unrealized losses | 4,000,000 | 33,000,000 |
12 months or more Fair value | 384,000,000 | 131,000,000 |
12 months or more Unrealized losses | 20,000,000 | 19,000,000 |
Total Fair value | 694,000,000 | 1,189,000,000 |
Total Unrealized losses | 24,000,000 | 52,000,000 |
Available-for-sale | Agency RMBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 8,935,000,000 | 14,766,000,000 |
Less than 12 months Unrealized losses | 72,000,000 | 141,000,000 |
12 months or more Fair value | 4,145,000,000 | 1,673,000,000 |
12 months or more Unrealized losses | 178,000,000 | 200,000,000 |
Total Fair value | 13,080,000,000 | 16,439,000,000 |
Total Unrealized losses | 250,000,000 | 341,000,000 |
Available-for-sale | Non-agency RMBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 5,000,000 | 21,000,000 |
Less than 12 months Unrealized losses | 0 | 0 |
12 months or more Fair value | 156,000,000 | 332,000,000 |
12 months or more Unrealized losses | 3,000,000 | 13,000,000 |
Total Fair value | 161,000,000 | 353,000,000 |
Total Unrealized losses | 3,000,000 | 13,000,000 |
Available-for-sale | Other RMBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 72,000,000 | 26,000,000 |
Less than 12 months Unrealized losses | 4,000,000 | 0 |
12 months or more Fair value | 83,000,000 | 136,000,000 |
12 months or more Unrealized losses | 4,000,000 | 8,000,000 |
Total Fair value | 155,000,000 | 162,000,000 |
Total Unrealized losses | 8,000,000 | 8,000,000 |
Available-for-sale | Commercial MBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 193,000,000 | 302,000,000 |
Less than 12 months Unrealized losses | 2,000,000 | 7,000,000 |
12 months or more Fair value | 92,000,000 | 163,000,000 |
12 months or more Unrealized losses | 2,000,000 | 4,000,000 |
Total Fair value | 285,000,000 | 465,000,000 |
Total Unrealized losses | 4,000,000 | 11,000,000 |
Available-for-sale | Agency commercial MBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 3,610,000,000 | 3,570,000,000 |
Less than 12 months Unrealized losses | 47,000,000 | 78,000,000 |
12 months or more Fair value | 561,000,000 | 589,000,000 |
12 months or more Unrealized losses | 10,000,000 | 6,000,000 |
Total Fair value | 4,171,000,000 | 4,159,000,000 |
Total Unrealized losses | 57,000,000 | 84,000,000 |
Available-for-sale | CLOs | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 449,000,000 | 443,000,000 |
Less than 12 months Unrealized losses | 1,000,000 | 1,000,000 |
12 months or more Fair value | 0 | 404,000,000 |
12 months or more Unrealized losses | 0 | 0 |
Total Fair value | 449,000,000 | 847,000,000 |
Total Unrealized losses | 1,000,000 | 1,000,000 |
Available-for-sale | Other asset-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 276,000,000 | |
Less than 12 months Unrealized losses | 1,000,000 | |
12 months or more Fair value | 357,000,000 | |
12 months or more Unrealized losses | 5,000,000 | |
Total Fair value | 633,000,000 | |
Total Unrealized losses | 0 | 6,000,000 |
Available-for-sale | Foreign covered bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 1,017,000,000 | 712,000,000 |
Less than 12 months Unrealized losses | 7,000,000 | 9,000,000 |
12 months or more Fair value | 28,000,000 | 0 |
12 months or more Unrealized losses | 0 | 0 |
Total Fair value | 1,045,000,000 | 712,000,000 |
Total Unrealized losses | 7,000,000 | 9,000,000 |
Available-for-sale | Corporate bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 306,000,000 | 594,000,000 |
Less than 12 months Unrealized losses | 3,000,000 | 16,000,000 |
12 months or more Fair value | 144,000,000 | 7,000,000 |
12 months or more Unrealized losses | 5,000,000 | 1,000,000 |
Total Fair value | 450,000,000 | 601,000,000 |
Total Unrealized losses | 8,000,000 | 17,000,000 |
Available-for-sale | Sovereign debt/sovereign guaranteed | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 2,263,000,000 | 1,521,000,000 |
Less than 12 months Unrealized losses | 20,000,000 | 20,000,000 |
12 months or more Fair value | 137,000,000 | 63,000,000 |
12 months or more Unrealized losses | 3,000,000 | 0 |
Total Fair value | 2,400,000,000 | 1,584,000,000 |
Total Unrealized losses | 23,000,000 | 20,000,000 |
Available-for-sale | Other debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 1,347,000,000 | 742,000,000 |
Less than 12 months Unrealized losses | 9,000,000 | 10,000,000 |
12 months or more Fair value | 84,000,000 | 50,000,000 |
12 months or more Unrealized losses | 1,000,000 | 0 |
Total Fair value | 1,431,000,000 | 792,000,000 |
Total Unrealized losses | 10,000,000 | 10,000,000 |
Available-for-sale | Non-agency RMBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 8,000,000 | 25,000,000 |
Less than 12 months Unrealized losses | 2,000,000 | 0 |
12 months or more Fair value | 13,000,000 | 47,000,000 |
12 months or more Unrealized losses | 2,000,000 | 9,000,000 |
Total Fair value | 21,000,000 | 72,000,000 |
Total Unrealized losses | 4,000,000 | 9,000,000 |
Held-to-maturity | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 26,437,000,000 | 27,783,000,000 |
Less than 12 months Unrealized losses | 211,000,000 | 354,000,000 |
12 months or more Fair value | 985,000,000 | 277,000,000 |
12 months or more Unrealized losses | 16,000,000 | 9,000,000 |
Total Fair value | 27,422,000,000 | 28,060,000,000 |
Total Unrealized losses | 227,000,000 | 363,000,000 |
Held-to-maturity | U.S. Treasury | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 7,281,000,000 | 6,112,000,000 |
Less than 12 months Unrealized losses | 29,000,000 | 41,000,000 |
12 months or more Fair value | 0 | 0 |
12 months or more Unrealized losses | 0 | 0 |
Total Fair value | 7,281,000,000 | 6,112,000,000 |
Total Unrealized losses | 29,000,000 | 41,000,000 |
Held-to-maturity | U.S. government agencies | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 1,459,000,000 | 1,533,000,000 |
Less than 12 months Unrealized losses | 5,000,000 | 6,000,000 |
12 months or more Fair value | 99,000,000 | 0 |
12 months or more Unrealized losses | 1,000,000 | 0 |
Total Fair value | 1,558,000,000 | 1,533,000,000 |
Total Unrealized losses | 6,000,000 | 6,000,000 |
Held-to-maturity | State and political subdivisions | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 0 | 0 |
Less than 12 months Unrealized losses | 0 | 0 |
12 months or more Fair value | 4,000,000 | 4,000,000 |
12 months or more Unrealized losses | 1,000,000 | 1,000,000 |
Total Fair value | 4,000,000 | 4,000,000 |
Total Unrealized losses | 1,000,000 | 1,000,000 |
Held-to-maturity | Agency RMBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 17,125,000,000 | 19,498,000,000 |
Less than 12 months Unrealized losses | 172,000,000 | 297,000,000 |
12 months or more Fair value | 847,000,000 | 102,000,000 |
12 months or more Unrealized losses | 13,000,000 | 2,000,000 |
Total Fair value | 17,972,000,000 | 19,600,000,000 |
Total Unrealized losses | 185,000,000 | 299,000,000 |
Held-to-maturity | Non-agency RMBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 4,000,000 | |
Less than 12 months Unrealized losses | 0 | |
12 months or more Fair value | 48,000,000 | |
12 months or more Unrealized losses | 2,000,000 | |
Total Fair value | 52,000,000 | |
Total Unrealized losses | 0 | 2,000,000 |
Held-to-maturity | Other RMBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 15,000,000 | 15,000,000 |
Less than 12 months Unrealized losses | 0 | 0 |
12 months or more Fair value | 35,000,000 | 123,000,000 |
12 months or more Unrealized losses | 1,000,000 | 4,000,000 |
Total Fair value | 50,000,000 | 138,000,000 |
Total Unrealized losses | 1,000,000 | 4,000,000 |
Held-to-maturity | Commercial MBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Unrealized losses | 0 | 0 |
Held-to-maturity | Agency commercial MBS | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair value | 557,000,000 | 621,000,000 |
Less than 12 months Unrealized losses | 5,000,000 | 10,000,000 |
12 months or more Fair value | 0 | 0 |
12 months or more Unrealized losses | 0 | 0 |
Total Fair value | 557,000,000 | 621,000,000 |
Total Unrealized losses | 5,000,000 | 10,000,000 |
Held-to-maturity | Foreign covered bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Unrealized losses | 0 | 0 |
Held-to-maturity | Sovereign debt/sovereign guaranteed | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Unrealized losses | 0 | 0 |
Held-to-maturity | Other debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Unrealized losses | $ 0 | $ 0 |
Securities - Maturity Distribut
Securities - Maturity Distribution by Carrying Amount and Yield (on Tax Equivalent Basis) of Investment Securities Portfolio (Detail) $ in Millions | Sep. 30, 2017USD ($) |
Securities available-for-sale: | |
One year or less | $ 6,513 |
Over 1 through 5 years | 20,188 |
Over 5 through 10 years | 8,439 |
Over 10 years | 3,883 |
Total | 80,054 |
Securities held-to-maturity: | |
One year or less | 6,374 |
Over 1 through 5 years | 4,709 |
Over 5 through 10 years | 2,070 |
Over 10 years | 14 |
Total | 39,995 |
Mortgage-backed securities | |
Securities available-for-sale: | |
Without single maturity date | 36,381 |
Securities held-to-maturity: | |
Mortgage-backed securities | 26,828 |
Asset-backed securities | |
Securities available-for-sale: | |
Without single maturity date | 3,707 |
Equity securities | |
Securities available-for-sale: | |
Without single maturity date | 943 |
U.S. Treasury | |
Securities available-for-sale: | |
One year or less | 2,223 |
Over 1 through 5 years | 5,790 |
Over 5 through 10 years | 4,002 |
Over 10 years | 3,487 |
Total | $ 15,502 |
Securities available-for-sale (Yield): | |
One year or less | 1.02% |
Over 1 through 5 years | 1.66% |
Over 5 through 10 years | 1.90% |
Over 10 years | 3.11% |
Total | 1.96% |
Securities held-to-maturity: | |
One year or less | $ 4,943 |
Over 1 through 5 years | 3,517 |
Over 5 through 10 years | 1,407 |
Over 10 years | 0 |
Total | $ 9,867 |
Securities held-to-maturity (Yield): | |
One year or less | 0.97% |
Over 1 through 5 years | 1.67% |
Over 5 through 10 years | 1.92% |
Over 10 years | 0.00% |
Total | 1.36% |
U.S. government agencies | |
Securities available-for-sale: | |
One year or less | $ 0 |
Over 1 through 5 years | 174 |
Over 5 through 10 years | 690 |
Over 10 years | 0 |
Total | $ 864 |
Securities available-for-sale (Yield): | |
One year or less | 0.00% |
Over 1 through 5 years | 1.29% |
Over 5 through 10 years | 2.46% |
Over 10 years | 0.00% |
Total | 2.23% |
Securities held-to-maturity: | |
One year or less | $ 731 |
Over 1 through 5 years | 883 |
Over 5 through 10 years | 0 |
Over 10 years | 0 |
Total | $ 1,614 |
Securities held-to-maturity (Yield): | |
One year or less | 0.99% |
Over 1 through 5 years | 1.38% |
Over 5 through 10 years | 0.00% |
Over 10 years | 0.00% |
Total | 1.20% |
State and political subdivisions | |
Securities available-for-sale: | |
One year or less | $ 438 |
Over 1 through 5 years | 1,576 |
Over 5 through 10 years | 912 |
Over 10 years | 198 |
Total | $ 3,124 |
Securities available-for-sale (Yield): | |
One year or less | 2.60% |
Over 1 through 5 years | 3.07% |
Over 5 through 10 years | 3.34% |
Over 10 years | 2.36% |
Total | 3.04% |
Securities held-to-maturity: | |
One year or less | $ 0 |
Over 1 through 5 years | 2 |
Over 5 through 10 years | 2 |
Over 10 years | 14 |
Total | $ 18 |
Securities held-to-maturity (Yield): | |
One year or less | 0.00% |
Over 1 through 5 years | 6.88% |
Over 5 through 10 years | 6.86% |
Over 10 years | 5.32% |
Total | 5.64% |
Other bonds, notes and debentures | |
Securities available-for-sale: | |
One year or less | $ 3,852 |
Over 1 through 5 years | 12,648 |
Over 5 through 10 years | 2,835 |
Over 10 years | 198 |
Total | $ 19,533 |
Securities available-for-sale (Yield): | |
One year or less | 1.01% |
Over 1 through 5 years | 0.99% |
Over 5 through 10 years | 0.81% |
Over 10 years | 1.64% |
Total | 0.97% |
Securities held-to-maturity: | |
One year or less | $ 700 |
Over 1 through 5 years | 307 |
Over 5 through 10 years | 661 |
Over 10 years | 0 |
Total | $ 1,668 |
Securities held-to-maturity (Yield): | |
One year or less | 0.60% |
Over 1 through 5 years | 0.59% |
Over 5 through 10 years | 0.73% |
Over 10 years | 0.00% |
Total | 0.65% |
Mortgage/ asset-backed and equity securities | |
Securities available-for-sale: | |
Total | $ 41,031 |
Securities available-for-sale (Yield): | |
Total | 2.68% |
Securities held-to-maturity: | |
Total | $ 26,828 |
Securities held-to-maturity (Yield): | |
Total | 2.80% |
Mortgage/ asset-backed and equity securities | Mortgage-backed securities | |
Securities available-for-sale: | |
Without single maturity date | $ 36,381 |
Securities available-for-sale (Yield): | |
Without single maturity date | 2.78% |
Securities held-to-maturity: | |
Mortgage-backed securities | $ 26,828 |
Securities held-to-maturity (Yield): | |
Without single maturity date | 2.80% |
Mortgage/ asset-backed and equity securities | Asset-backed securities | |
Securities available-for-sale: | |
Without single maturity date | $ 3,707 |
Securities available-for-sale (Yield): | |
Without single maturity date | 2.32% |
Mortgage/ asset-backed and equity securities | Equity securities | |
Securities available-for-sale: | |
Without single maturity date | $ 943 |
Securities available-for-sale (Yield): | |
Without single maturity date | 0.00% |
Securities - Projected Weighted
Securities - Projected Weighted-Average Default Rates and Loss Severities (Detail) - Recent Vintage | Sep. 30, 2017 | Dec. 31, 2016 |
Alt-A | ||
Gain (Loss) on Investments [Line Items] | ||
Default rate | 22.00% | 30.00% |
Severity | 54.00% | 54.00% |
Subprime | ||
Gain (Loss) on Investments [Line Items] | ||
Default rate | 38.00% | 49.00% |
Severity | 66.00% | 70.00% |
Prime | ||
Gain (Loss) on Investments [Line Items] | ||
Default rate | 13.00% | 18.00% |
Severity | 39.00% | 39.00% |
Securities - Pre-Tax Net Securi
Securities - Pre-Tax Net Securities Gains (Losses) by Type (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Net securities gains (losses) | $ 19 | $ 0 | $ 24 | $ 29 | $ 65 |
Agency RMBS | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Net securities gains (losses) | 4 | 0 | 9 | 5 | 22 |
U.S. Treasury | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Net securities gains (losses) | 1 | (1) | (1) | 0 | 4 |
Foreign covered bonds | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Net securities gains (losses) | 0 | 0 | 0 | 0 | 10 |
Non-agency RMBS | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Net securities gains (losses) | (1) | 0 | (1) | (2) | 1 |
Other | |||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||
Net securities gains (losses) | $ 15 | $ 1 | $ 17 | $ 26 | $ 28 |
Securities - Debt Securities Cr
Securities - Debt Securities Credit Losses Roll Forward Recorded in Earnings (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other than Temporary Impairment [Roll Forward] | ||||
Beginning balance | $ 85 | $ 91 | $ 88 | $ 91 |
Add: Initial OTTI credit losses | 0 | 0 | 0 | 0 |
Subsequent OTTI credit losses | 1 | 1 | 3 | 5 |
Less: Realized losses for securities sold | 2 | 5 | 7 | 9 |
Ending balance | $ 84 | $ 87 | $ 84 | $ 87 |
Securities - Pledged assets (De
Securities - Pledged assets (Details) - USD ($) $ in Billions | Sep. 30, 2017 | Dec. 31, 2016 |
Securities [Abstract] | ||
Pledged assets | $ 108 | $ 102 |
Pledged collateral for potential borrowings at the Federal Reserve Discount Window | 87 | 84 |
Pledged Asset, Other, Not Separately Reported on Statement of Financial Position, Potential Borrowings at the Federal Home Loan Bank | 4 | |
Pledged securities | 92 | 87 |
Pledged loans | 13 | 8 |
Pledged trading assets | 2 | 3 |
Financial Instruments Owned and Pledged as Collateral, Amount Eligible to be Repledged by Counterparty | 13 | 6 |
Pledged interest-bearing deposits | 1 | 4 |
Pledged assets permitted to be sold or repledged | 68 | 50 |
Market value of securities received as collateral that have been sold or repledged | 39 | 20 |
Cash segregated under federal or other regulations | 4 | 3 |
Securities segregated under federal or other regulations | $ 2 | $ 2 |
Securities - Narrative (Details
Securities - Narrative (Details) - Other RMBS $ in Millions | Sep. 30, 2017USD ($) |
Schedule of Investments [Line Items] | |
Held-to-maturity securities transferred to available-for-sale, amortized cost | $ 74 |
Held-to-maturity securities transferred to available-for-sale, fair value | $ 76 |
Loans and asset quality - Detai
Loans and asset quality - Details of Loan Distribution and Industry Concentrations of Credit Risk (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 59,068 | $ 64,458 | ||
Unearned income on lease financings | 414 | 527 | ||
Financial institutions | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 11,896 | 14,689 | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 3,003 | 2,617 | ||
Wealth management loans and mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 16,265 | 15,654 | ||
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 4,927 | 4,654 | ||
Other residential mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 741 | 854 | ||
Overdrafts | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 5,800 | 5,500 | ||
Margin loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 13,900 | 17,600 | ||
Domestic | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 46,865 | 50,425 | ||
Domestic | Financial institutions | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 5,155 | 6,342 | ||
Domestic | Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 2,698 | 2,286 | ||
Domestic | Wealth management loans and mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 16,161 | 15,555 | ||
Domestic | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 4,921 | 4,639 | ||
Domestic | Lease financings | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 823 | 989 | ||
Domestic | Other residential mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 741 | 854 | ||
Domestic | Overdrafts | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 1,487 | $ 855 | 1,055 | $ 1,580 |
Domestic | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 1,159 | 1,122 | 1,202 | 1,122 |
Domestic | Margin loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 13,720 | $ 13,973 | 17,503 | $ 17,487 |
Foreign | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 12,203 | 14,033 | ||
Foreign | Financial institutions | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 6,741 | 8,347 | ||
Foreign | Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 305 | 331 | ||
Foreign | Wealth management loans and mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 104 | 99 | ||
Foreign | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 6 | 15 | ||
Foreign | Lease financings | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 522 | 736 | ||
Foreign | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 4,373 | 4,418 | ||
Foreign | Margin loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 152 | $ 87 |
Loans and asset quality - Allow
Loans and asset quality - Allowance for Credit Losses Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | $ 270 | $ 276 | $ 280 | $ 281 | $ 275 | |
Charge-offs | 0 | 0 | (1) | (1) | (1) | |
Recoveries | 1 | 1 | 14 | 3 | 18 | |
Net recoveries | 1 | 1 | 13 | 2 | 17 | |
Provision | (6) | (7) | (19) | (18) | (18) | |
Ending balance | 265 | 270 | 274 | 265 | 274 | |
Allowance for: | ||||||
Loan losses | 161 | 165 | 148 | 161 | 148 | |
Lending-related commitments | 104 | 105 | 126 | 104 | 126 | |
Individually evaluated for impairment: | ||||||
Loan balance | 7 | 9 | 9 | 7 | 9 | |
Allowance for loan losses | 2 | 5 | 3 | 2 | 3 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 59,061 | 61,664 | 65,959 | 59,061 | 65,959 | |
Allowance for loan losses | 159 | 160 | 145 | 159 | 145 | |
Loans | 59,068 | 59,068 | $ 64,458 | |||
Domestic | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 46,865 | 46,865 | 50,425 | |||
Commercial | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 80 | 82 | 90 | 82 | 82 | |
Charge-offs | 0 | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | 0 | |
Net recoveries | 0 | 0 | 0 | 0 | 0 | |
Provision | 1 | (2) | 1 | (1) | 9 | |
Ending balance | 81 | 80 | 91 | 81 | 91 | |
Allowance for: | ||||||
Loan losses | 26 | 26 | 22 | 26 | 22 | |
Lending-related commitments | 55 | 54 | 69 | 55 | 69 | |
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 0 | 0 | 0 | |
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 2,698 | 2,580 | 2,292 | 2,698 | 2,292 | |
Allowance for loan losses | 26 | 26 | 22 | 26 | 22 | |
Loans | 3,003 | 3,003 | 2,617 | |||
Commercial | Domestic | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 2,698 | 2,698 | 2,286 | |||
Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 75 | 73 | 63 | 73 | 59 | |
Charge-offs | 0 | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | 0 | |
Net recoveries | 0 | 0 | 0 | 0 | 0 | |
Provision | 0 | 2 | 0 | 2 | 4 | |
Ending balance | 75 | 75 | 63 | 75 | 63 | |
Allowance for: | ||||||
Loan losses | 57 | 55 | 45 | 57 | 45 | |
Lending-related commitments | 18 | 20 | 18 | 18 | 18 | |
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 1 | 0 | 1 | |
Allowance for loan losses | 0 | 0 | 1 | 0 | 1 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 4,921 | 5,017 | 4,693 | 4,921 | 4,693 | |
Allowance for loan losses | 57 | 55 | 44 | 57 | 44 | |
Loans | 4,927 | 4,927 | 4,654 | |||
Commercial real estate | Domestic | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 4,921 | 4,921 | 4,639 | |||
Financial institutions | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 23 | 23 | 29 | 26 | 31 | |
Charge-offs | 0 | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 13 | 0 | 13 | |
Net recoveries | 0 | 0 | 13 | 0 | 13 | |
Provision | 0 | 0 | (13) | (3) | (15) | |
Ending balance | 23 | 23 | 29 | 23 | 29 | |
Allowance for: | ||||||
Loan losses | 7 | 7 | 9 | 7 | 9 | |
Lending-related commitments | 16 | 16 | 20 | 16 | 20 | |
Individually evaluated for impairment: | ||||||
Loan balance | 2 | 2 | 0 | 2 | 0 | |
Allowance for loan losses | 2 | 2 | 0 | 2 | 0 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 5,153 | 5,952 | 6,783 | 5,153 | 6,783 | |
Allowance for loan losses | 5 | 5 | 9 | 5 | 9 | |
Loans | 11,896 | 11,896 | 14,689 | |||
Financial institutions | Domestic | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 5,155 | 5,155 | 6,342 | |||
Lease financings | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 10 | 10 | 14 | 13 | 15 | |
Charge-offs | 0 | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | 0 | |
Net recoveries | 0 | 0 | 0 | 0 | 0 | |
Provision | (1) | 0 | 0 | (4) | (1) | |
Ending balance | 9 | 10 | 14 | 9 | 14 | |
Allowance for: | ||||||
Loan losses | 9 | 10 | 14 | 9 | 14 | |
Lending-related commitments | 0 | 0 | 0 | 0 | 0 | |
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 4 | 0 | 4 | |
Allowance for loan losses | 0 | 0 | 2 | 0 | 2 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 823 | 847 | 1,013 | 823 | 1,013 | |
Allowance for loan losses | 9 | 10 | 12 | 9 | 12 | |
Lease financings | Domestic | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 823 | 823 | 989 | |||
Wealth management loans and mortgages | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 25 | 26 | 18 | 23 | 19 | |
Charge-offs | 0 | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | 0 | |
Net recoveries | 0 | 0 | 0 | 0 | 0 | |
Provision | (4) | (1) | 0 | (2) | (1) | |
Ending balance | 21 | 25 | 18 | 21 | 18 | |
Allowance for: | ||||||
Loan losses | 17 | 21 | 14 | 17 | 14 | |
Lending-related commitments | 4 | 4 | 4 | 4 | 4 | |
Individually evaluated for impairment: | ||||||
Loan balance | 5 | 7 | 4 | 5 | 4 | |
Allowance for loan losses | 0 | 3 | 0 | 0 | 0 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 16,156 | 16,024 | 15,027 | 16,156 | 15,027 | |
Allowance for loan losses | 17 | 18 | 14 | 17 | 14 | |
Loans | 16,265 | 16,265 | 15,654 | |||
Wealth management loans and mortgages | Domestic | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 16,161 | 16,161 | 15,555 | |||
Other residential mortgages | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 23 | 25 | 29 | 28 | 34 | |
Charge-offs | 0 | 0 | (1) | (1) | (1) | |
Recoveries | 1 | 1 | 1 | 3 | 4 | |
Net recoveries | 1 | 1 | 0 | 2 | 3 | |
Provision | (3) | (3) | (1) | (9) | (9) | |
Ending balance | 21 | 23 | 28 | 21 | 28 | |
Allowance for: | ||||||
Loan losses | 21 | 23 | 28 | 21 | 28 | |
Lending-related commitments | 0 | 0 | 0 | 0 | 0 | |
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 0 | 0 | 0 | |
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 741 | 780 | 901 | 741 | 901 | |
Allowance for loan losses | 21 | 23 | 28 | 21 | 28 | |
Loans | 741 | 741 | 854 | |||
Other residential mortgages | Domestic | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 741 | 741 | 854 | |||
All other | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 0 | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | 0 | |
Net recoveries | 0 | 0 | 0 | 0 | 0 | |
Provision | 0 | 0 | 0 | 0 | 0 | |
Ending balance | 0 | 0 | 0 | 0 | 0 | |
Allowance for: | ||||||
Loan losses | 0 | 0 | 0 | 0 | 0 | |
Lending-related commitments | 0 | 0 | 0 | 0 | 0 | |
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 0 | 0 | 0 | |
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 16,366 | 15,950 | 20,189 | 16,366 | 20,189 | |
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | |
Foreign | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 34 | 37 | 37 | 36 | 35 | |
Charge-offs | 0 | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | 1 | |
Net recoveries | 0 | 0 | 0 | 0 | 1 | |
Provision | 1 | (3) | (6) | (1) | (5) | |
Ending balance | 35 | 34 | 31 | 35 | 31 | |
Allowance for: | ||||||
Loan losses | 24 | 23 | 16 | 24 | 16 | |
Lending-related commitments | 11 | 11 | 15 | 11 | 15 | |
Individually evaluated for impairment: | ||||||
Loan balance | 0 | 0 | 0 | 0 | 0 | |
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment: | ||||||
Loan balance | 12,203 | 14,514 | 15,061 | 12,203 | 15,061 | |
Allowance for loan losses | 24 | 23 | 16 | 24 | 16 | |
Overdrafts | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 5,800 | 5,800 | 5,500 | |||
Overdrafts | Domestic | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 1,487 | 855 | 1,580 | 1,487 | 1,580 | 1,055 |
Margin loans | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 13,900 | 13,900 | 17,600 | |||
Margin loans | Domestic | ||||||
Collectively evaluated for impairment: | ||||||
Loans | 13,720 | 13,973 | 17,487 | 13,720 | 17,487 | 17,503 |
Other | Domestic | ||||||
Collectively evaluated for impairment: | ||||||
Loans | $ 1,159 | $ 1,122 | $ 1,122 | $ 1,159 | $ 1,122 | $ 1,202 |
Loans and asset quality - Nonpe
Loans and asset quality - Nonperforming Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Impaired [Line Items] | ||
Total nonperforming loans | $ 90 | $ 103 |
Other assets owned | 4 | 4 |
Total nonperforming assets | 94 | 107 |
Domestic | Other residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Total nonperforming loans | 80 | 91 |
Domestic | Wealth management loans and mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Total nonperforming loans | 8 | 8 |
Domestic | Financial institutions | ||
Financing Receivable, Impaired [Line Items] | ||
Total nonperforming loans | 2 | 0 |
Domestic | Lease financings | ||
Financing Receivable, Impaired [Line Items] | ||
Total nonperforming loans | $ 0 | $ 4 |
Loans and asset quality - Lost
Loans and asset quality - Lost Interest (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Receivables [Abstract] | |||||
Amount by which interest income recognized on nonperforming loans exceeded reversals | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Amount by which interest income would have increased if nonperforming loans at period end had been performing for the entire period | $ 1 | $ 1 | $ 1 | $ 4 | $ 4 |
Loans and asset quality - Infor
Loans and asset quality - Information about Impaired Loans (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, average recorded investment | $ 4 | $ 4 | $ 8 | $ 5 | $ 9 | |
Impaired loans without an allowance, average recorded investment | 4 | 3 | 89 | 3 | 131 | |
Total impaired loans, average recorded investment | 8 | 7 | 97 | 8 | 140 | |
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | 0 | 0 | |
Impaired loans without an allowance, interest income recognized | 0 | 0 | 0 | 0 | 0 | |
Total impaired loans, interest income recognized | 0 | 0 | 0 | 0 | 0 | |
Impaired loans with an allowance, recorded investment | 3 | 3 | $ 7 | |||
Impaired loans without an allowance, recorded investment | 4 | 4 | 2 | |||
Total impaired loans, recorded investment | 7 | 7 | 9 | |||
Impaired loans with an allowance, unpaid Principal balance | 6 | 6 | 10 | |||
Impaired loans without an allowance, unpaid Principal balance | 4 | 4 | 2 | |||
Total impaired loans, unpaid Principal balance | 10 | 10 | 12 | |||
Impaired loans with an allowance, related allowance | 2 | 2 | 5 | |||
Commercial real estate | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, average recorded investment | 0 | 0 | 1 | 0 | 1 | |
Impaired loans without an allowance, average recorded investment | 0 | 0 | 1 | 0 | 1 | |
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | 0 | 0 | |
Impaired loans without an allowance, interest income recognized | 0 | 0 | 0 | 0 | 0 | |
Impaired loans with an allowance, recorded investment | 0 | 0 | 0 | |||
Impaired loans with an allowance, unpaid Principal balance | 3 | 3 | 3 | |||
Impaired loans with an allowance, related allowance | 0 | 0 | 0 | |||
Financial institutions | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, average recorded investment | 2 | 1 | 0 | 1 | 0 | |
Impaired loans without an allowance, average recorded investment | 0 | 0 | 85 | 0 | 128 | |
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | 0 | 0 | |
Impaired loans without an allowance, interest income recognized | 0 | 0 | 0 | 0 | 0 | |
Impaired loans with an allowance, recorded investment | 2 | 2 | 0 | |||
Impaired loans with an allowance, unpaid Principal balance | 2 | 2 | 0 | |||
Impaired loans with an allowance, related allowance | 2 | 2 | 0 | |||
Wealth management loans and mortgages | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, average recorded investment | 2 | 3 | 3 | 3 | 5 | |
Impaired loans without an allowance, average recorded investment | 4 | 3 | 3 | 3 | 2 | |
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | 0 | 0 | |
Impaired loans without an allowance, interest income recognized | 0 | 0 | 0 | 0 | 0 | |
Impaired loans with an allowance, recorded investment | 1 | 1 | 3 | |||
Impaired loans without an allowance, recorded investment | 4 | 4 | 2 | |||
Impaired loans with an allowance, unpaid Principal balance | 1 | 1 | 3 | |||
Impaired loans without an allowance, unpaid Principal balance | 4 | 4 | 2 | |||
Impaired loans with an allowance, related allowance | 0 | 0 | 3 | |||
Lease financings | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, average recorded investment | 0 | 0 | 4 | 1 | 3 | |
Impaired loans with an allowance, interest income recognized | 0 | $ 0 | $ 0 | 0 | $ 0 | |
Impaired loans with an allowance, recorded investment | 0 | 0 | 4 | |||
Impaired loans with an allowance, unpaid Principal balance | 0 | 0 | 4 | |||
Impaired loans with an allowance, related allowance | 0 | 0 | 2 | |||
Loans Individually Less Than 1 Million | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, recorded investment | 1 | 1 | 1 | |||
Impaired loans with an allowance, related allowance | 1 | 1 | 1 | |||
Loans Individually Less Than 1 Million | Maximum | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Impaired loans with an allowance, recorded investment | $ 1 | $ 1 | $ 1 |
Loans and asset quality - Inf62
Loans and asset quality - Information about Past Due Loans (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 241 | $ 162 |
30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 157 | 120 |
60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 78 | 35 |
Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 6 | 7 |
Domestic | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 111 | 78 |
Domestic | Commercial real estate | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 51 | 78 |
Domestic | Commercial real estate | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 60 | 0 |
Domestic | Commercial real estate | Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Domestic | Wealth management loans and mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 102 | 23 |
Domestic | Wealth management loans and mortgages | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 86 | 21 |
Domestic | Wealth management loans and mortgages | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 15 | 2 |
Domestic | Wealth management loans and mortgages | Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1 | 0 |
Domestic | Other residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 28 | 33 |
Domestic | Other residential mortgages | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 20 | 20 |
Domestic | Other residential mortgages | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 3 | 6 |
Domestic | Other residential mortgages | Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 5 | 7 |
Domestic | Financial institutions | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 28 |
Domestic | Financial institutions | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 1 |
Domestic | Financial institutions | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 27 |
Domestic | Financial institutions | Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 0 | $ 0 |
Loans and asset quality- Troubl
Loans and asset quality- Troubled Debt Restructurings (Detail) $ in Millions | 3 Months Ended | ||
Sep. 30, 2017USD ($)Contract | Jun. 30, 2017USD ($)Contract | Sep. 30, 2016USD ($)Contract | |
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | Contract | 20 | 16 | 17 |
Outstanding recorded investment Pre-modification | $ 7 | $ 4 | $ 4 |
Outstanding recorded investment Post- modification | $ 7 | $ 4 | $ 4 |
Domestic | Other residential mortgages | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | Contract | 19 | 16 | 17 |
Outstanding recorded investment Pre-modification | $ 5 | $ 4 | $ 4 |
Outstanding recorded investment Post- modification | $ 5 | $ 4 | $ 4 |
Domestic | Wealth management loans and mortgages | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | Contract | 1 | 0 | 0 |
Outstanding recorded investment Pre-modification | $ 2 | $ 0 | $ 0 |
Outstanding recorded investment Post- modification | $ 2 | $ 0 | $ 0 |
Loans and asset quality - Credi
Loans and asset quality - Credit Quality Indicators - Wealth Management Loans and Mortgages - Credit Risk Profile by Internally Assigned Grade (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 59,068 | $ 64,458 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,003 | 2,617 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,927 | 4,654 |
Financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,896 | 14,689 |
Wealth management mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 9,002 | 8,267 |
Wealth management loans and mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 16,265 | 15,654 |
Investment grade | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,857 | 2,397 |
Investment grade | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,339 | 3,823 |
Investment grade | Financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 9,217 | 11,459 |
Investment grade | Wealth management loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,128 | 7,127 |
Non-investment grade | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 146 | 220 |
Non-investment grade | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 588 | 831 |
Non-investment grade | Financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,679 | 3,230 |
Non-investment grade | Wealth management loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 135 | $ 260 |
Loans and asset quality - Addit
Loans and asset quality - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($)class_of_receivableSegmentContract | Dec. 31, 2016USD ($)class_of_receivableSegment | Jun. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of portfolio segments | Segment | 3 | 3 | |||
Number of classes of financing receivables | class_of_receivable | 6 | 6 | |||
Loans | $ 59,068 | $ 59,068 | $ 64,458 | ||
Domestic | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 46,865 | $ 46,865 | 50,425 | ||
Other residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Subsequently defaulted number of contracts | Contract | 3 | ||||
Financing receivable, modifications, subsequent default, recorded investment (less than) | 1 | ||||
Loans | 741 | $ 741 | 854 | ||
Other residential mortgages | Domestic | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 741 | 741 | 854 | ||
Purchased mortgages | $ 181 | $ 181 | |||
Purchased residential mortgages, loan to value ratio | 76.00% | 76.00% | |||
Percentage of purchased residential mortgages that were at least 60 days delinquent | 11.00% | 11.00% | |||
Wealth management mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan to value ratio at origination | 62.00% | 62.00% | |||
Percentage of past due mortgages (less than) | 1.00% | 1.00% | |||
Loans | $ 9,002 | $ 9,002 | 8,267 | ||
Wealth management mortgages | California | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Geographic concentrations | 24.00% | ||||
Wealth management mortgages | New York | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Geographic concentrations | 19.00% | ||||
Wealth management mortgages | Massachusetts | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Geographic concentrations | 11.00% | ||||
Wealth management mortgages | Florida | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Geographic concentrations | 8.00% | ||||
Wealth management mortgages | Other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Geographic concentrations | 38.00% | ||||
Wealth management loans and mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 16,265 | $ 16,265 | 15,654 | ||
Wealth management loans and mortgages | Domestic | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 16,161 | 16,161 | 15,555 | ||
Overdrafts | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 5,800 | 5,800 | $ 5,500 | ||
Number of business days in which overdrafts are generally repaid | 2 days | ||||
Overdrafts | Domestic | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 1,487 | 1,487 | $ 1,055 | $ 855 | $ 1,580 |
Margin loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | 13,900 | 13,900 | 17,600 | ||
Margin loans | Domestic | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | $ 13,720 | $ 13,720 | $ 17,503 | $ 13,973 | $ 17,487 |
Margin loans | Domestic | Minimum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Required daily collateral margin (in excess of) | 100.00% | 100.00% |
Goodwill and intangible asset66
Goodwill and intangible assets - Goodwill by Business Segment (Detail) | 9 Months Ended | |
Sep. 30, 2017USD ($)Segmentreporting_unit | Sep. 30, 2016USD ($) | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 17,316,000,000 | $ 17,618,000,000 |
Acquisitions | 28,000,000 | |
Foreign currency translation | 227,000,000 | (197,000,000) |
Other | 0 | |
Ending balance | $ 17,543,000,000 | 17,449,000,000 |
Impairment testing | ||
Number of reportable segments | Segment | 3 | |
Number of reporting units | reporting_unit | 8 | |
Goodwill impairment recognized | $ 0 | |
Investment Management | ||
Goodwill [Roll Forward] | ||
Beginning balance | 9,000,000,000 | 9,207,000,000 |
Acquisitions | 29,000,000 | |
Foreign currency translation | 120,000,000 | (167,000,000) |
Other | 2,000,000 | |
Ending balance | 9,120,000,000 | 9,071,000,000 |
Investment Services | ||
Goodwill [Roll Forward] | ||
Beginning balance | 8,269,000,000 | 8,366,000,000 |
Acquisitions | (1,000,000) | |
Foreign currency translation | 107,000,000 | (30,000,000) |
Other | (4,000,000) | |
Ending balance | 8,376,000,000 | 8,331,000,000 |
Other | ||
Goodwill [Roll Forward] | ||
Beginning balance | 47,000,000 | 45,000,000 |
Acquisitions | 0 | |
Foreign currency translation | 0 | 0 |
Other | 2,000,000 | |
Ending balance | $ 47,000,000 | $ 47,000,000 |
Goodwill and intangible asset67
Goodwill and intangible assets - Intangible Assets by Business Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Intangible Assets [Roll Forward] | |||||
Beginning Balance | $ 3,598 | $ 3,842 | |||
Acquisitions | 32 | ||||
Amortization | $ (52) | $ (53) | $ (61) | (157) | (177) |
Foreign currency translation | 20 | (26) | |||
Ending Balance | 3,461 | 3,671 | 3,461 | 3,671 | |
Investment Management | |||||
Intangible Assets [Roll Forward] | |||||
Beginning Balance | 1,717 | 1,807 | |||
Acquisitions | 30 | ||||
Amortization | (45) | (60) | |||
Foreign currency translation | 16 | (27) | |||
Ending Balance | 1,688 | 1,750 | 1,688 | 1,750 | |
Investment Services | |||||
Intangible Assets [Roll Forward] | |||||
Beginning Balance | 1,032 | 1,186 | |||
Acquisitions | 2 | ||||
Amortization | (112) | (117) | |||
Foreign currency translation | 4 | 1 | |||
Ending Balance | 924 | 1,072 | 924 | 1,072 | |
Other | |||||
Intangible Assets [Roll Forward] | |||||
Beginning Balance | 849 | 849 | |||
Acquisitions | 0 | ||||
Amortization | 0 | 0 | |||
Foreign currency translation | 0 | 0 | |||
Ending Balance | $ 849 | $ 849 | $ 849 | $ 849 |
Goodwill and intangible asset68
Goodwill and intangible assets - Intangible Assets by Type (Detail) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | $ 6,409 | $ 6,357 | ||
Accumulated amortization | (2,948) | (2,759) | ||
Net carrying amount | 3,461 | 3,598 | $ 3,671 | $ 3,842 |
Finite-lived Intangible Assets | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | 3,765 | 3,725 | ||
Accumulated amortization | (2,948) | (2,759) | ||
Net carrying amount | $ 817 | 966 | ||
Finite-lived Intangible Assets | Weighted Average | ||||
Intangible Assets by Major Class [Line Items] | ||||
Remaining weighted- average amortization period | 10 years | |||
Finite-lived Intangible Assets | Customer relationships | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | $ 1,483 | 1,439 | ||
Accumulated amortization | (1,221) | (1,136) | ||
Net carrying amount | $ 262 | 303 | ||
Finite-lived Intangible Assets | Customer relationships | Weighted Average | ||||
Intangible Assets by Major Class [Line Items] | ||||
Remaining weighted- average amortization period | 11 years | |||
Finite-lived Intangible Assets | Customer contracts—Investment Services | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | $ 2,257 | 2,249 | ||
Accumulated amortization | (1,705) | (1,590) | ||
Net carrying amount | $ 552 | 659 | ||
Finite-lived Intangible Assets | Customer contracts—Investment Services | Weighted Average | ||||
Intangible Assets by Major Class [Line Items] | ||||
Remaining weighted- average amortization period | 10 years | |||
Finite-lived Intangible Assets | Other | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | $ 25 | 37 | ||
Accumulated amortization | (22) | (33) | ||
Net carrying amount | $ 3 | 4 | ||
Finite-lived Intangible Assets | Other | Weighted Average | ||||
Intangible Assets by Major Class [Line Items] | ||||
Remaining weighted- average amortization period | 2 years | |||
Indefinite-lived Intangible Assets | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | $ 2,644 | 2,632 | ||
Net carrying amount | 2,644 | 2,632 | ||
Indefinite-lived Intangible Assets | Trade name | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | 1,350 | 1,348 | ||
Net carrying amount | 1,350 | 1,348 | ||
Indefinite-lived Intangible Assets | Customer relationships | ||||
Intangible Assets by Major Class [Line Items] | ||||
Gross carrying amount | 1,294 | 1,284 | ||
Net carrying amount | $ 1,294 | $ 1,284 |
Goodwill and intangible asset69
Goodwill and intangible assets - Estimated Annual Amortization Expense (Detail) $ in Millions | Sep. 30, 2017USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,017 | $ 209 |
2,018 | 180 |
2,019 | 109 |
2,020 | 98 |
2,021 | $ 75 |
Other assets - Components of Ot
Other assets - Components of Other Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Other Assets [Abstract] | ||
Corporate/bank-owned life insurance | $ 4,824 | $ 4,789 |
Accounts receivable | 3,899 | 4,060 |
Fails to deliver | 3,532 | 1,732 |
Software | 1,513 | 1,451 |
Renewable energy investments | 1,344 | 1,282 |
Equity in a joint venture and other investments | 1,153 | 1,063 |
Income taxes receivable | 1,020 | 1,172 |
Qualified affordable housing project investments | 988 | 914 |
Prepaid pension assets | 951 | 836 |
Prepaid expenses | 512 | 438 |
Federal Reserve Bank stock | 474 | 466 |
Fair value of hedging derivatives | 344 | 784 |
Due from customers on acceptances | 318 | 340 |
Seed capital | 302 | 395 |
Other | 1,113 | 1,232 |
Total other assets | 22,287 | $ 20,954 |
Federal Home Loan Bank stock, at cost | $ 76 |
Other assets - Qualified Afford
Other assets - Qualified Affordable Housing Project Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Other Assets [Abstract] | ||||||
Qualified affordable housing project investments | $ 988 | $ 988 | $ 914 | |||
Qualified affordable housing project investments, commitment | 439 | 439 | $ 369 | |||
Qualified affordable housing project commitment - 2017 | 75 | 75 | ||||
Qualified affordable housing project commitment - 2018 | 161 | 161 | ||||
Qualified affordable housing project commitment - 2019 | 107 | 107 | ||||
Qualified affordable housing project commitment - 2020 | 79 | 79 | ||||
Qualified affordable housing project commitment - 2021 | 1 | 1 | ||||
Qualified affordable housing project commitment - 2022 and thereafter | 16 | 16 | ||||
Tax credits and other tax benefits | 39 | $ 38 | $ 39 | 115 | $ 115 | |
Amortization expense included in the provision for income taxes | $ 29 | $ 28 | $ 30 | $ 84 | $ 86 |
Other assets - Seed Capital and
Other assets - Seed Capital and Private Equity Investments Valued Using Net Asset Value (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Fair value | $ 151 | $ 214 |
Unfunded commitments | 49 | 47 |
Seed capital and other funds | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Fair value | 97 | 171 |
Unfunded commitments | $ 2 | $ 1 |
Redemption frequency | Daily-quarterly | Daily-quarterly |
Private equity investments | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Fair value | $ 54 | $ 43 |
Unfunded commitments | $ 47 | $ 46 |
Minimum | Seed capital and other funds | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Redemption notice period | 1 day | 1 day |
Maximum | Seed capital and other funds | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ||
Redemption notice period | 95 days | 180 days |
Net interest revenue (Details)
Net interest revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest revenue | |||||
Non-margin loans | $ 283 | $ 272 | $ 218 | $ 800 | $ 637 |
Margin loans | 87 | 87 | 67 | 249 | 194 |
Securities: | |||||
Taxable | 510 | 476 | 434 | 1,447 | 1,307 |
Exempt from federal income taxes | 16 | 16 | 17 | 49 | 53 |
Total securities | 526 | 492 | 451 | 1,496 | 1,360 |
Deposits with banks | 34 | 27 | 26 | 83 | 76 |
Deposits with the Federal Reserve and other central banks | 89 | 71 | 37 | 217 | 170 |
Federal funds sold and securities purchased under resale agreements | 119 | 86 | 62 | 272 | 167 |
Trading assets | 13 | 17 | 13 | 46 | 43 |
Total interest revenue | 1,151 | 1,052 | 874 | 3,163 | 2,647 |
Interest expense | |||||
Deposits | 57 | 32 | (6) | 98 | 21 |
Federal funds purchased and securities sold under repurchase agreements | 70 | 38 | 6 | 132 | 28 |
Trading liabilities | 2 | 2 | 2 | 6 | 5 |
Other borrowed funds | 7 | 4 | 1 | 13 | 5 |
Commercial paper | 8 | 5 | 1 | 18 | 5 |
Customer payables | 19 | 16 | 3 | 42 | 9 |
Long-term debt | 149 | 129 | 93 | 397 | 267 |
Total interest expense | 312 | 226 | 100 | 706 | 340 |
Net interest revenue | 839 | 826 | 774 | 2,457 | 2,307 |
Provision | (6) | (7) | (19) | (18) | (18) |
Net interest revenue after provision for credit losses | $ 845 | $ 833 | $ 793 | $ 2,475 | $ 2,325 |
Employee benefit plans (Details
Employee benefit plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Health care benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 0 | $ 0 | $ 1 | $ 0 | $ 3 |
Interest cost | 2 | 2 | 2 | 6 | 6 |
Expected return on assets | (2) | (2) | (2) | (6) | (6) |
Other | (1) | (1) | (1) | (3) | (3) |
Net periodic benefit (credit) cost | (1) | (1) | 0 | (3) | 0 |
Domestic pension benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0 | 0 | 0 | 0 | 0 |
Interest cost | 45 | 45 | 45 | 135 | 135 |
Expected return on assets | (81) | (81) | (82) | (243) | (246) |
Other | 17 | 17 | 17 | 51 | 52 |
Net periodic benefit (credit) cost | (19) | (19) | (20) | (57) | (59) |
Foreign pension benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 7 | 7 | 8 | 21 | 24 |
Interest cost | 8 | 8 | 9 | 24 | 27 |
Expected return on assets | (12) | (12) | (13) | (36) | (39) |
Other | 9 | 9 | 4 | 27 | 13 |
Net periodic benefit (credit) cost | $ 12 | $ 12 | $ 8 | $ 36 | $ 25 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||||
Provision for income taxes | $ 348 | $ 332 | $ 324 | $ 949 | $ 897 |
Effective tax rate | 25.40% | 25.40% | 24.60% | ||
Tax reserves | $ 157 | $ 143 | 157 | ||
Impact on effective tax rate if tax reserves were unnecessary | 157 | ||||
Accrued interest, related to income taxes in the balance sheet | 24 | 24 | |||
Additional tax expense related to interest | 7 | $ 2 | |||
Reasonably possible decrease in uncertain tax positions within the next 12 months, if a re-evaluation is required | $ 57 | $ 57 |
Variable interest entities an76
Variable interest entities and securitization - Incremental Assets and Liabilities of Variable Interest Entities Included in Consolidated Financial Statements (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Nonredeemable noncontrolling interests of consolidated investment management funds | $ 384 | $ 618 |
VIE classification of carrying amount, assets | 90 | 114 |
VIE classification of carrying amount, liabilities | 2 | 3 |
Noncontrolling interest in VIE | 20 | 25 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Available-for-sale | 400 | 400 |
Trading assets | 576 | 979 |
Other assets, fair value | 226 | 252 |
Total assets | 1,202 | 1,631 |
Trading liabilities | 282 | |
Other liabilities | 396 | 396 |
Subtotal liabilities | 396 | 678 |
Nonredeemable noncontrolling interests of consolidated investment management funds | 384 | 618 |
Variable Interest Entity, Primary Beneficiary | Investment Management funds | ||
Variable Interest Entity [Line Items] | ||
Available-for-sale | 0 | 0 |
Trading assets | 576 | 979 |
Other assets, fair value | 226 | 252 |
Total assets | 802 | 1,231 |
Trading liabilities | 282 | |
Other liabilities | 27 | 33 |
Subtotal liabilities | 27 | 315 |
Nonredeemable noncontrolling interests of consolidated investment management funds | 384 | 618 |
Variable Interest Entity, Primary Beneficiary | Securitization | ||
Variable Interest Entity [Line Items] | ||
Available-for-sale | 400 | 400 |
Trading assets | 0 | 0 |
Other assets, fair value | 0 | 0 |
Total assets | 400 | 400 |
Trading liabilities | 0 | |
Other liabilities | 369 | 363 |
Subtotal liabilities | 369 | 363 |
Nonredeemable noncontrolling interests of consolidated investment management funds | $ 0 | $ 0 |
Variable interest entities an77
Variable interest entities and securitization - Non-consolidated Variable Interest Entities (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Available-for-sale | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 143 | $ 42 |
Liabilities | 0 | 0 |
Maximum loss exposure | 143 | 42 |
Other Assets and Liabilities, Net | ||
Variable Interest Entity [Line Items] | ||
Assets | 2,559 | 2,400 |
Liabilities | 439 | 369 |
Maximum loss exposure | $ 3,321 | $ 2,769 |
Preferred stock - Narrative (De
Preferred stock - Narrative (Details) - $ / shares | Sep. 20, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | |||
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 | |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 | |
Series A Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Dividend paid per share (usd per share) | $ 1,022.22 | ||
Preferred stock, dividend rate per normal preferred capital security (usd per share) | $ 10.2222 | ||
Depository share, portion of preferred stock share | 1.00% | ||
Series C Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Dividend paid per share (usd per share) | $ 1,300 | ||
Preferred stock, dividend rate per depository share (usd per share) | $ 0.325 | ||
Depository share, portion of preferred stock share | 0.025% | ||
Series E Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Depository share, portion of preferred stock share | 1.00% | ||
Series F Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Dividend paid per share (usd per share) | $ 2,312.50 | ||
Preferred stock, dividend rate per depository share (usd per share) | $ 23.125 |
Preferred stock - Summary (Deta
Preferred stock - Summary (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 20, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||
Total shares issued and outstanding (shares) | 35,826 | 35,826 | |
Carrying value | $ 3,542 | $ 3,542 | |
Series A Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Per annum dividend rate | Greater of (i) three-month LIBOR plus 0.565% for the related distribution period; or (ii) 4.000% | ||
Per annum dividend rate | 4.00% | ||
Liquidation preference per share (usd per share) | $ 100,000 | ||
Total shares issued and outstanding (shares) | 5,001 | 5,001 | |
Carrying value | $ 500 | $ 500 | |
Depository share, portion of preferred stock share | 1.00% | ||
Series A Noncumulative Perpetual Preferred Stock | LIBOR | |||
Class of Stock [Line Items] | |||
Preferred stock, basis spread on variable rate | 0.565% | ||
Series C Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Per annum dividend rate | 5.20% | ||
Liquidation preference per share (usd per share) | $ 100,000 | ||
Total shares issued and outstanding (shares) | 5,825 | 5,825 | |
Carrying value | $ 568 | $ 568 | |
Depository share, portion of preferred stock share | 0.025% | ||
Series D Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Per annum dividend rate | 4.50% to but excluding June 20, 2023, then a floating rate equal to the three-month LIBOR plus 2.46% | ||
Per annum dividend rate | 4.50% | ||
Liquidation preference per share (usd per share) | $ 100,000 | ||
Total shares issued and outstanding (shares) | 5,000 | 5,000 | |
Carrying value | $ 494 | $ 494 | |
Series D Noncumulative Perpetual Preferred Stock | LIBOR | |||
Class of Stock [Line Items] | |||
Preferred stock, basis spread on variable rate | 2.46% | ||
Series E Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Per annum dividend rate | 4.95% to and including June 20, 2020, then a floating rate equal to the three-month LIBOR plus 3.42% | ||
Per annum dividend rate | 4.95% | ||
Liquidation preference per share (usd per share) | $ 100,000 | ||
Total shares issued and outstanding (shares) | 10,000 | 10,000 | |
Carrying value | $ 990 | $ 990 | |
Depository share, portion of preferred stock share | 1.00% | ||
Series E Noncumulative Perpetual Preferred Stock | LIBOR | |||
Class of Stock [Line Items] | |||
Preferred stock, basis spread on variable rate | 3.42% | ||
Series F Noncumulative Perpetual Preferred Stock | |||
Class of Stock [Line Items] | |||
Per annum dividend rate | 4.625% to and including Sept. 20, 2026, then a floating rate equal to the three-month LIBOR plus 3.131% | ||
Per annum dividend rate | 4.625% | ||
Liquidation preference per share (usd per share) | $ 100,000 | ||
Total shares issued and outstanding (shares) | 10,000 | 10,000 | |
Carrying value | $ 990 | $ 990 | |
Series F Noncumulative Perpetual Preferred Stock | LIBOR | |||
Class of Stock [Line Items] | |||
Preferred stock, basis spread on variable rate | 3.131% |
Other comprehensive income (l80
Other comprehensive income (loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
After-tax amount | ||||||
Total other comprehensive income (loss), net of tax | [1] | $ 317 | $ 437 | $ (238) | $ 997 | $ (208) |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
Pre-tax amount | ||||||
Total other comprehensive income (loss), Pre-tax amount | 275 | 420 | (189) | 988 | 113 | |
Tax (expense) benefit | ||||||
Total other comprehensive income (loss), Tax (expense) benefit | 42 | 17 | (49) | 9 | (321) | |
After-tax amount | ||||||
Total other comprehensive income (loss), net of tax | 317 | 437 | (238) | 997 | (208) | |
Foreign currency translation | ||||||
Pre-tax amount | ||||||
Other comprehensive income (loss), Pre-tax amount | 221 | 249 | (104) | 566 | (223) | |
Total other comprehensive income (loss), Pre-tax amount | 221 | 249 | (104) | 566 | (223) | |
Tax (expense) benefit | ||||||
Other comprehensive income (loss), Tax (expense) benefit | 65 | 81 | (82) | 175 | (210) | |
Total other comprehensive income (loss), Tax (expense) benefit | 65 | 81 | (82) | 175 | (210) | |
After-tax amount | ||||||
Other comprehensive income (loss), After-tax amount | 286 | 330 | (186) | 741 | (433) | |
Total other comprehensive income (loss), net of tax | 286 | 330 | (186) | 741 | (433) | |
Unrealized gain (loss) on assets available-for-sale | ||||||
Pre-tax amount | ||||||
Other comprehensive income (loss), Pre-tax amount | 47 | 146 | (87) | 357 | 338 | |
Reclassification adjustment, Pre-tax amount | (19) | 0 | (24) | (29) | (65) | |
Total other comprehensive income (loss), Pre-tax amount | 28 | 146 | (111) | 328 | 273 | |
Tax (expense) benefit | ||||||
Other comprehensive income (loss), Tax (expense) benefit | (19) | (55) | 34 | (144) | (111) | |
Reclassification adjustment, Tax (expense) benefit | 7 | (1) | 9 | 10 | 22 | |
Total other comprehensive income (loss), Tax (expense) benefit | (12) | (56) | 43 | (134) | (89) | |
After-tax amount | ||||||
Other comprehensive income (loss), After-tax amount | 28 | 91 | (53) | 213 | 227 | |
Reclassification adjustment, After-tax amount | (12) | (1) | (15) | (19) | (43) | |
Total other comprehensive income (loss), net of tax | 16 | 90 | (68) | 194 | 184 | |
Defined benefit plans | ||||||
Pre-tax amount | ||||||
Other comprehensive income (loss), Pre-tax amount | 0 | 0 | 0 | 3 | 3 | |
Reclassification adjustment, Pre-tax amount | 25 | 24 | 22 | 74 | 65 | |
Total other comprehensive income (loss), Pre-tax amount | 25 | 24 | 22 | 77 | 68 | |
Tax (expense) benefit | ||||||
Other comprehensive income (loss), Tax (expense) benefit | 0 | 0 | 0 | (1) | (1) | |
Reclassification adjustment, Tax (expense) benefit | (10) | (8) | (8) | (25) | (22) | |
Total other comprehensive income (loss), Tax (expense) benefit | (10) | (8) | (8) | (26) | (23) | |
After-tax amount | ||||||
Other comprehensive income (loss), After-tax amount | 0 | 0 | 0 | 2 | 2 | |
Reclassification adjustment, After-tax amount | 15 | 16 | 14 | 49 | 43 | |
Total other comprehensive income (loss), net of tax | 15 | 16 | 14 | 51 | 45 | |
Unrealized gain (loss) on cash flow hedges | ||||||
Pre-tax amount | ||||||
Other comprehensive income (loss), Pre-tax amount | (2) | (8) | (24) | 4 | (115) | |
Reclassification adjustment, Pre-tax amount | 3 | 9 | 28 | 13 | 110 | |
Total other comprehensive income (loss), Pre-tax amount | 1 | 1 | 4 | 17 | (5) | |
Tax (expense) benefit | ||||||
Other comprehensive income (loss), Tax (expense) benefit | 0 | 4 | 7 | (1) | 38 | |
Reclassification adjustment, Tax (expense) benefit | (1) | (4) | (9) | (5) | (37) | |
Total other comprehensive income (loss), Tax (expense) benefit | (1) | 0 | (2) | (6) | 1 | |
After-tax amount | ||||||
Other comprehensive income (loss), After-tax amount | (2) | (4) | (17) | 3 | (77) | |
Reclassification adjustment, After-tax amount | 2 | 5 | 19 | 8 | 73 | |
Total other comprehensive income (loss), net of tax | $ 0 | $ 1 | $ 2 | $ 11 | $ (4) | |
[1] | Other comprehensive income (loss) attributable to The Bank of New York Mellon Corporation shareholders was $312 million for the quarter ended Sept. 30, 2017, $431 million for the quarter ended June 30, 2017, $(233) million for the quarter ended Sept. 30, 2016, $984 million for the nine months ended Sept. 30, 2017 and $(185) million for the nine months ended Sept. 30, 2016. |
Fair value measurement - Assets
Fair value measurement - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | $ 3,561 | $ 4,264 |
Derivative liabilities | 3,222 | 4,401 |
Long-term debt | 369 | 363 |
Estimated fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Other assets, fair value | 6,726 | 5,934 |
Total assets | 223,308 | 208,365 |
Long-term debt | 28,335 | 24,184 |
Estimated fair value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Other assets, fair value | 5,557 | 4,822 |
Total assets | 15,500 | 15,995 |
Long-term debt | 0 | 0 |
Estimated fair value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Other assets, fair value | 1,169 | 1,112 |
Total assets | 207,808 | 192,370 |
Long-term debt | 28,335 | 24,184 |
Estimated fair value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Other assets, fair value | 0 | 0 |
Total assets | 0 | 0 |
Long-term debt | 0 | 0 |
Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Other assets, fair value | 6,726 | 5,934 |
Total assets | 223,230 | 208,331 |
Long-term debt | 28,039 | 24,100 |
Assets measured at fair value on a recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Netting | (8,470) | (10,257) |
Netting | (8,875) | (10,047) |
Assets measured at fair value on a recurring basis | Total trading assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Netting | (8,470) | (10,257) |
Assets measured at fair value on a recurring basis | Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Netting | (8,470) | (10,257) |
Netting | (8,875) | (10,047) |
Assets measured at fair value on a recurring basis | Total trading liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Netting | (8,875) | (10,047) |
Assets measured at fair value on a recurring basis | Not designated as hedging | Total trading assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Netting | (8,470) | (10,257) |
Assets measured at fair value on a recurring basis | Not designated as hedging | Total trading assets | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Netting | (5,301) | (6,047) |
Assets measured at fair value on a recurring basis | Not designated as hedging | Total trading assets | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Netting | (3,120) | (4,172) |
Assets measured at fair value on a recurring basis | Not designated as hedging | Total trading assets | Equity and other contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Netting | (49) | (38) |
Assets measured at fair value on a recurring basis | Not designated as hedging | Total trading liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Netting | (8,875) | (10,047) |
Assets measured at fair value on a recurring basis | Not designated as hedging | Total trading liabilities | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Netting | (5,705) | (6,634) |
Assets measured at fair value on a recurring basis | Not designated as hedging | Total trading liabilities | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Netting | (3,095) | (3,363) |
Assets measured at fair value on a recurring basis | Not designated as hedging | Total trading liabilities | Equity and other contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Netting | (75) | (50) |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Other assets, fair value | 148 | 268 |
Total assets | $ 19,786 | $ 18,070 |
Percentage of total assets prior to netting | 21.00% | 20.00% |
Long-term debt | $ 0 | |
Subtotal liabilities | $ 692 | $ 356 |
Percentage of total liabilities prior to netting | 5.00% | 2.00% |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | $ 18,803 | $ 17,094 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 15,502 | 14,307 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 74 | 66 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Other RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Agency commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | CLOs | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 4 | 3 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 939 | 842 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Foreign covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 2,284 | 1,876 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Securities available-for-sale | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Total trading assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt and equity instruments | 433 | 240 |
Trading assets | 437 | 244 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Total other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Other assets, fair value | 148 | 268 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets | $ 19,388 | $ 17,606 |
Percentage of total assets prior to netting | 21.00% | 19.00% |
Subtotal liabilities | $ 690 | $ 353 |
Percentage of total liabilities prior to netting | 5.00% | 2.00% |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Investment management funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets | $ 398 | $ 464 |
Subtotal liabilities | 2 | 3 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Total trading liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt and equity instruments | 684 | 349 |
Trading liabilities | 690 | 353 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Total other liabilities – derivative liabilities designated as hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total other liabilities – derivative liabilities designated as hedging | 0 | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Not designated as hedging | Total trading assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 4 | 4 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Not designated as hedging | Total trading assets | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 3 | 4 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Not designated as hedging | Total trading assets | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Not designated as hedging | Total trading assets | Equity and other contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 1 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Not designated as hedging | Total trading liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 6 | 4 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Not designated as hedging | Total trading liabilities | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 3 | 4 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Not designated as hedging | Total trading liabilities | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Not designated as hedging | Total trading liabilities | Equity and other contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 3 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Designated as hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 0 | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Designated as hedging | Total other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 0 | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Designated as hedging | Total other assets | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Designated as hedging | Total other assets | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 1 | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Other assets, fair value | 528 | 857 |
Total assets | $ 74,882 | $ 74,098 |
Percentage of total assets prior to netting | 79.00% | 80.00% |
Long-term debt | $ 369 | $ 363 |
Subtotal liabilities | $ 12,644 | $ 15,355 |
Percentage of total liabilities prior to netting | 95.00% | 98.00% |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | $ 61,251 | $ 56,728 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 864 | 359 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 12,491 | 12,423 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 3,124 | 3,378 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 24,431 | 22,736 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 525 | 638 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Other RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 265 | 513 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 965 | 928 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Agency commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 9,010 | 6,449 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | CLOs | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 2,550 | 2,598 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,157 | 1,727 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 0 | 0 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,275 | 1,396 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 3,151 | 1,961 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Foreign covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 258 | 265 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Securities available-for-sale | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,185 | 1,357 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Total trading assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt and equity instruments | 1,016 | 2,013 |
Trading assets | 12,699 | 15,746 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Total other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Other assets, fair value | 184 | 73 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets | $ 74,478 | $ 73,331 |
Percentage of total assets prior to netting | 79.00% | 81.00% |
Subtotal liabilities | $ 12,619 | $ 15,043 |
Percentage of total liabilities prior to netting | 95.00% | 98.00% |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Investment management funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets | $ 404 | $ 767 |
Subtotal liabilities | 25 | 312 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Total trading liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt and equity instruments | 159 | 236 |
Trading liabilities | 11,438 | 14,083 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Total other liabilities – derivative liabilities designated as hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total other liabilities – derivative liabilities designated as hedging | 812 | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Not designated as hedging | Total trading assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 11,683 | 13,733 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Not designated as hedging | Total trading assets | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 6,731 | 7,583 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Not designated as hedging | Total trading assets | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 4,879 | 6,104 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Not designated as hedging | Total trading assets | Equity and other contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 73 | 46 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Not designated as hedging | Total trading liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 11,279 | 13,847 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Not designated as hedging | Total trading liabilities | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 6,681 | 7,629 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Not designated as hedging | Total trading liabilities | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 4,463 | 6,103 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Not designated as hedging | Total trading liabilities | Equity and other contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 135 | 115 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Designated as hedging | Total other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 344 | 784 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Designated as hedging | Total other assets | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 307 | 415 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Designated as hedging | Total other assets | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 37 | 369 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 597 | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 494 | 545 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 2 | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 318 | $ 52 |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Percentage of total assets prior to netting | 0.00% | |
Assets measured at fair value on a recurring basis | Estimated fair value | Level 3 | Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Percentage of total assets prior to netting | 0.00% | |
Assets measured at fair value on a recurring basis | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Other assets, fair value | 827 | $ 1,339 |
Total assets | 86,349 | 82,125 |
Long-term debt | 369 | 363 |
Subtotal liabilities | 4,461 | 5,664 |
Assets measured at fair value on a recurring basis | Total carrying value | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 12,565 | 12,489 |
Assets measured at fair value on a recurring basis | Total carrying value | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 525 | 638 |
Assets measured at fair value on a recurring basis | Total carrying value | Foreign covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 2,542 | 2,141 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 80,054 | 73,822 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 15,502 | 14,307 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 864 | 359 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 12,565 | 12,489 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 3,124 | 3,378 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 24,431 | 22,736 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 525 | 638 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Other RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 265 | 513 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 965 | 928 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Agency commercial MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 9,010 | 6,449 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | CLOs | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 2,550 | 2,598 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,157 | 1,727 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 4 | 3 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 939 | 842 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,275 | 1,396 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 3,151 | 1,961 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Foreign covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 2,542 | 2,141 |
Assets measured at fair value on a recurring basis | Total carrying value | Securities available-for-sale | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,185 | 1,357 |
Assets measured at fair value on a recurring basis | Total carrying value | Total trading assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt and equity instruments | 1,449 | 2,253 |
Trading assets | 4,666 | 5,733 |
Assets measured at fair value on a recurring basis | Total carrying value | Total other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Other assets, fair value | 332 | 341 |
Assets measured at fair value on a recurring basis | Total carrying value | Other assets measured at net asset value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Other assets, fair value | 151 | 214 |
Assets measured at fair value on a recurring basis | Total carrying value | Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets | 85,547 | 80,894 |
Subtotal liabilities | 4,434 | 5,349 |
Assets measured at fair value on a recurring basis | Total carrying value | Investment management funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets | 802 | 1,231 |
Subtotal liabilities | 27 | 315 |
Assets measured at fair value on a recurring basis | Total carrying value | Total trading liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt and equity instruments | 843 | 585 |
Trading liabilities | 3,253 | 4,389 |
Assets measured at fair value on a recurring basis | Total carrying value | Total other liabilities – derivative liabilities designated as hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total other liabilities – derivative liabilities designated as hedging | 812 | |
Assets measured at fair value on a recurring basis | Total carrying value | Not designated as hedging | Total trading assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 3,217 | 3,480 |
Assets measured at fair value on a recurring basis | Total carrying value | Not designated as hedging | Total trading assets | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 1,433 | 1,540 |
Assets measured at fair value on a recurring basis | Total carrying value | Not designated as hedging | Total trading assets | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 1,759 | 1,932 |
Assets measured at fair value on a recurring basis | Total carrying value | Not designated as hedging | Total trading assets | Equity and other contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 25 | 8 |
Assets measured at fair value on a recurring basis | Total carrying value | Not designated as hedging | Total trading liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 2,410 | 3,804 |
Assets measured at fair value on a recurring basis | Total carrying value | Not designated as hedging | Total trading liabilities | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 979 | 999 |
Assets measured at fair value on a recurring basis | Total carrying value | Not designated as hedging | Total trading liabilities | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 1,368 | 2,740 |
Assets measured at fair value on a recurring basis | Total carrying value | Not designated as hedging | Total trading liabilities | Equity and other contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 63 | 65 |
Assets measured at fair value on a recurring basis | Total carrying value | Designated as hedging | Total other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 344 | 784 |
Assets measured at fair value on a recurring basis | Total carrying value | Designated as hedging | Total other assets | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 307 | 415 |
Assets measured at fair value on a recurring basis | Total carrying value | Designated as hedging | Total other assets | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 37 | 369 |
Assets measured at fair value on a recurring basis | Total carrying value | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 597 | |
Assets measured at fair value on a recurring basis | Total carrying value | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 494 | 545 |
Assets measured at fair value on a recurring basis | Total carrying value | Designated as hedging | Total other liabilities – derivative liabilities designated as hedging | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | $ 318 | $ 52 |
Fair value measurement - Detail
Fair value measurement - Details of Certain Items Measured at Fair Value on Recurring Basis (Details) - Assets measured at fair value on a recurring basis - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Total carrying value | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | $ 80,054 | $ 73,822 |
Non-agency RMBS | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 525 | 638 |
Non-agency RMBS | Total carrying value | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 525 | 638 |
Non-agency RMBS | 2007 | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 42 | 58 |
Non-agency RMBS | 2006 | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 85 | 98 |
Non-agency RMBS | 2005 | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 152 | 180 |
Non-agency RMBS | 2004 and earlier | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 246 | 302 |
Commercial MBS | Total carrying value | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 965 | 928 |
Commercial MBS | Total carrying value | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 914 | 881 |
Commercial MBS | 2007 | Total carrying value | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 190 | |
Commercial MBS | 2006 | Total carrying value | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 3 | |
Commercial MBS | 2009-2017 | Total carrying value | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 909 | 674 |
Commercial MBS | 2008 | Total carrying value | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 5 | 14 |
Foreign covered bonds | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 2,542 | 2,141 |
Foreign covered bonds | Total carrying value | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 2,542 | 2,141 |
Foreign covered bonds | Canada | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,648 | 1,320 |
Foreign covered bonds | Australia | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 261 | 40 |
Foreign covered bonds | Netherlands | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 177 | 160 |
Foreign covered bonds | United Kingdom | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 136 | 280 |
Foreign covered bonds | Other | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 320 | 341 |
Total European floating rate notes - available-for-sale | Total carrying value | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 317 | 562 |
Total European floating rate notes - available-for-sale | Netherlands | Total carrying value | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 113 | 125 |
Total European floating rate notes - available-for-sale | United Kingdom | Total carrying value | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 204 | 379 |
Total European floating rate notes - available-for-sale | Ireland | Total carrying value | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 58 | |
Sovereign debt/sovereign guaranteed | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 12,565 | 12,489 |
Sovereign debt/sovereign guaranteed | Total carrying value | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 12,565 | 12,489 |
Sovereign debt/sovereign guaranteed | Netherlands | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,016 | 1,061 |
Sovereign debt/sovereign guaranteed | United Kingdom | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 3,036 | 3,209 |
Sovereign debt/sovereign guaranteed | France | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,993 | 1,998 |
Sovereign debt/sovereign guaranteed | Spain | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,740 | 1,749 |
Sovereign debt/sovereign guaranteed | Germany | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,688 | 1,347 |
Sovereign debt/sovereign guaranteed | Italy | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,169 | 1,130 |
Sovereign debt/sovereign guaranteed | Ireland | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 832 | 736 |
Sovereign debt/sovereign guaranteed | Belgium | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 809 | 1,005 |
Sovereign debt/sovereign guaranteed | Other | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 282 | 254 |
Sovereign debt/sovereign guaranteed | Brazil | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 140 | 73 |
Non-agency RMBS | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 1,185 | 1,357 |
Non-agency RMBS | 2007 | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 337 | 387 |
Non-agency RMBS | 2006 | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 345 | 391 |
Non-agency RMBS | 2005 | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | 387 | 437 |
Non-agency RMBS | 2004 and earlier | Total carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total available-for-sale securities | $ 116 | $ 142 |
AAA/ AA- | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 8.00% | 9.00% |
AAA/ AA- | Non-agency RMBS | 2005 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 20.00% | 23.00% |
AAA/ AA- | Non-agency RMBS | 2004 and earlier | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 4.00% | 5.00% |
AAA/ AA- | Commercial MBS | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 89.00% | 81.00% |
AAA/ AA- | Commercial MBS | 2007 | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 71.00% | |
AAA/ AA- | Commercial MBS | 2006 | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 7.00% | |
AAA/ AA- | Commercial MBS | 2009-2017 | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 89.00% | 84.00% |
AAA/ AA- | Commercial MBS | 2008 | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
AAA/ AA- | Foreign covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
AAA/ AA- | Foreign covered bonds | Canada | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
AAA/ AA- | Foreign covered bonds | Australia | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
AAA/ AA- | Foreign covered bonds | Netherlands | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
AAA/ AA- | Foreign covered bonds | United Kingdom | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
AAA/ AA- | Foreign covered bonds | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
AAA/ AA- | Total European floating rate notes - available-for-sale | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 69.00% | 83.00% |
AAA/ AA- | Total European floating rate notes - available-for-sale | Netherlands | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 37.00% | 100.00% |
AAA/ AA- | Total European floating rate notes - available-for-sale | United Kingdom | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 87.00% | 90.00% |
AAA/ AA- | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 69.00% | 70.00% |
AAA/ AA- | Sovereign debt/sovereign guaranteed | Netherlands | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
AAA/ AA- | Sovereign debt/sovereign guaranteed | United Kingdom | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
AAA/ AA- | Sovereign debt/sovereign guaranteed | France | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
AAA/ AA- | Sovereign debt/sovereign guaranteed | Germany | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
AAA/ AA- | Sovereign debt/sovereign guaranteed | Belgium | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
AAA/ AA- | Sovereign debt/sovereign guaranteed | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 48.00% | 71.00% |
AAA/ AA- | Non-agency RMBS | 2005 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 1.00% | |
AAA/ AA- | Non-agency RMBS | 2004 and earlier | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 2.00% | 2.00% |
A/ A- | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 2.00% | 3.00% |
A/ A- | Non-agency RMBS | 2005 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 3.00% | 5.00% |
A/ A- | Non-agency RMBS | 2004 and earlier | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 2.00% | 3.00% |
A/ A- | Commercial MBS | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 11.00% | 19.00% |
A/ A- | Commercial MBS | 2007 | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 29.00% | |
A/ A- | Commercial MBS | 2006 | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 93.00% | |
A/ A- | Commercial MBS | 2009-2017 | Domestic | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 11.00% | 16.00% |
A/ A- | Total European floating rate notes - available-for-sale | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 31.00% | 7.00% |
A/ A- | Total European floating rate notes - available-for-sale | Netherlands | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 63.00% | |
A/ A- | Total European floating rate notes - available-for-sale | United Kingdom | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 13.00% | 10.00% |
A/ A- | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 7.00% | 6.00% |
A/ A- | Sovereign debt/sovereign guaranteed | Ireland | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
A/ A- | Sovereign debt/sovereign guaranteed | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 3.00% | |
A/ A- | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 1.00% | 1.00% |
A/ A- | Non-agency RMBS | 2005 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 1.00% | 2.00% |
A/ A- | Non-agency RMBS | 2004 and earlier | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 2.00% | 2.00% |
BBB/ BBB- | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 14.00% | 14.00% |
BBB/ BBB- | Non-agency RMBS | 2005 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 18.00% | 9.00% |
BBB/ BBB- | Non-agency RMBS | 2004 and earlier | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 27.00% | 24.00% |
BBB/ BBB- | Total European floating rate notes - available-for-sale | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 10.00% | |
BBB/ BBB- | Total European floating rate notes - available-for-sale | Ireland | Securities available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | |
BBB/ BBB- | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 23.00% | 23.00% |
BBB/ BBB- | Sovereign debt/sovereign guaranteed | Spain | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
BBB/ BBB- | Sovereign debt/sovereign guaranteed | Italy | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
BBB/ BBB- | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 3.00% | 2.00% |
BBB/ BBB- | Non-agency RMBS | 2005 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 1.00% | 1.00% |
BBB/ BBB- | Non-agency RMBS | 2004 and earlier | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 22.00% | 17.00% |
BB and lower | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 76.00% | 74.00% |
BB and lower | Non-agency RMBS | 2007 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
BB and lower | Non-agency RMBS | 2006 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
BB and lower | Non-agency RMBS | 2005 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 59.00% | 63.00% |
BB and lower | Non-agency RMBS | 2004 and earlier | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 67.00% | 68.00% |
BB and lower | Sovereign debt/sovereign guaranteed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 1.00% | 1.00% |
BB and lower | Sovereign debt/sovereign guaranteed | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 49.00% | 29.00% |
BB and lower | Non-agency RMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 96.00% | 97.00% |
BB and lower | Non-agency RMBS | 2007 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
BB and lower | Non-agency RMBS | 2006 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 100.00% | 100.00% |
BB and lower | Non-agency RMBS | 2005 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 97.00% | 97.00% |
BB and lower | Non-agency RMBS | 2004 and earlier | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Ratings (a) | 74.00% | 79.00% |
Fair value measurement - Fair V
Fair value measurement - Fair Value Measurements for Assets Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 101 | $ 0 |
Transfers into Level 3 | 0 | 19 |
Total gains for the period included in earnings | 0 | 2 |
Purchases and sales: | ||
Purchases | 0 | 113 |
Issuances | 1 | 1 |
Sales | (102) | (135) |
Ending balance | 0 | 0 |
Change in unrealized gains or (losses) for the period included in earnings for assets held at the end of the reporting period | $ 0 | $ 0 |
Fair value measurement - Asse84
Fair value measurement - Assets Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Change in fair value of loans of underlying collateral | $ (1) | $ (1) |
Measured at fair value on a nonrecurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 82 | 91 |
Other assets, fair value | 4 | 4 |
Total assets | 86 | 95 |
Measured at fair value on a nonrecurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Other assets, fair value | 0 | 0 |
Total assets | 0 | 0 |
Measured at fair value on a nonrecurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 75 | 84 |
Other assets, fair value | 4 | 4 |
Total assets | 79 | 88 |
Measured at fair value on a nonrecurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 7 | 7 |
Other assets, fair value | 0 | 0 |
Total assets | $ 7 | $ 7 |
Fair value measurement - Carryi
Fair value measurement - Carrying Amount and Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Liabilities: | ||
Long-term debt | $ 369 | $ 363 |
Estimated fair value | ||
Assets: | ||
Interest-bearing deposits with the Federal Reserve and other central banks | 75,808 | 58,041 |
Interest-bearing deposits with banks | 15,254 | 15,091 |
Federal funds sold and securities purchased under resale agreements | 27,883 | 25,801 |
Securities held-to-maturity | 39,928 | 40,669 |
Loans | 57,709 | 62,829 |
Other financial assets | 6,726 | 5,934 |
Total assets | 223,308 | 208,365 |
Liabilities: | ||
Noninterest-bearing deposits | 80,380 | 78,342 |
Interest-bearing deposits | 148,967 | 141,418 |
Federal funds purchased and securities sold under repurchase agreements | 10,314 | 9,989 |
Payables to customers and broker-dealers | 21,176 | 20,987 |
Commercial paper | 2,501 | |
Borrowings | 3,544 | 960 |
Long-term debt | 28,335 | 24,184 |
Total liabilities | 295,217 | 275,880 |
Estimated fair value | Level 1 | ||
Assets: | ||
Interest-bearing deposits with the Federal Reserve and other central banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Federal funds sold and securities purchased under resale agreements | 0 | 0 |
Securities held-to-maturity | 9,943 | 11,173 |
Loans | 0 | 0 |
Other financial assets | 5,557 | 4,822 |
Total assets | 15,500 | 15,995 |
Liabilities: | ||
Noninterest-bearing deposits | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Federal funds purchased and securities sold under repurchase agreements | 0 | 0 |
Payables to customers and broker-dealers | 0 | 0 |
Commercial paper | 0 | |
Borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Total liabilities | 0 | 0 |
Estimated fair value | Level 2 | ||
Assets: | ||
Interest-bearing deposits with the Federal Reserve and other central banks | 75,808 | 58,041 |
Interest-bearing deposits with banks | 15,254 | 15,091 |
Federal funds sold and securities purchased under resale agreements | 27,883 | 25,801 |
Securities held-to-maturity | 29,985 | 29,496 |
Loans | 57,709 | 62,829 |
Other financial assets | 1,169 | 1,112 |
Total assets | 207,808 | 192,370 |
Liabilities: | ||
Noninterest-bearing deposits | 80,380 | 78,342 |
Interest-bearing deposits | 148,967 | 141,418 |
Federal funds purchased and securities sold under repurchase agreements | 10,314 | 9,989 |
Payables to customers and broker-dealers | 21,176 | 20,987 |
Commercial paper | 2,501 | |
Borrowings | 3,544 | 960 |
Long-term debt | 28,335 | 24,184 |
Total liabilities | 295,217 | 275,880 |
Estimated fair value | Level 3 | ||
Assets: | ||
Interest-bearing deposits with the Federal Reserve and other central banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Federal funds sold and securities purchased under resale agreements | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Loans | 0 | 0 |
Other financial assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Noninterest-bearing deposits | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Federal funds purchased and securities sold under repurchase agreements | 0 | 0 |
Payables to customers and broker-dealers | 0 | 0 |
Commercial paper | 0 | |
Borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Total liabilities | 0 | 0 |
Carrying amount | ||
Assets: | ||
Interest-bearing deposits with the Federal Reserve and other central banks | 75,808 | 58,041 |
Interest-bearing deposits with banks | 15,256 | 15,086 |
Federal funds sold and securities purchased under resale agreements | 27,883 | 25,801 |
Securities held-to-maturity | 39,995 | 40,905 |
Loans | 57,562 | 62,564 |
Other financial assets | 6,726 | 5,934 |
Total assets | 223,230 | 208,331 |
Liabilities: | ||
Noninterest-bearing deposits | 80,380 | 78,342 |
Interest-bearing deposits | 150,616 | 143,148 |
Federal funds purchased and securities sold under repurchase agreements | 10,314 | 9,989 |
Payables to customers and broker-dealers | 21,176 | 20,987 |
Commercial paper | 2,501 | |
Borrowings | 3,544 | 960 |
Long-term debt | 28,039 | 24,100 |
Total liabilities | $ 296,570 | $ 277,526 |
Fair value measurement - Summar
Fair value measurement - Summary of Carrying Amount of Hedged Financial Instruments, Related Notional Amount of Hedge and Estimated Fair Value of Derivatives (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Securities available-for-sale | ||
Derivative [Line Items] | ||
Carrying amount | $ 12,416 | $ 9,184 |
Notional amount of hedge | 12,333 | 9,233 |
Unrealized Gain | 56 | 83 |
Unrealized (Loss) | (337) | (342) |
Long-term debt | ||
Derivative [Line Items] | ||
Carrying amount | 24,249 | 20,511 |
Notional amount of hedge | 24,200 | 20,450 |
Unrealized Gain | 249 | 330 |
Unrealized (Loss) | $ (157) | $ (203) |
Fair value option - Assets and
Fair value option - Assets and Liabilities, by Type, of Consolidated Investment Management Funds Recorded at Fair Value (Detail) - Investment Management funds - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Assets of consolidated investment management funds: | ||
Trading assets | $ 576 | $ 979 |
Other assets, fair value | 226 | 252 |
Total assets | 802 | 1,231 |
Liabilities of consolidated investment management funds: | ||
Trading liabilities | 0 | 282 |
Other liabilities | 27 | 33 |
Subtotal liabilities | $ 27 | $ 315 |
Fair value option - Changes in
Fair value option - Changes in Fair Value of Loans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Loans | Investment and other income | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gain (loss) change in fair value | $ 0 | $ 0 | $ (1) | $ 0 | $ 13 |
Long-term debt | Foreign exchange and other trading revenue | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gain (loss) change in fair value | $ (1) | $ (4) | $ 2 | $ (6) | $ (17) |
Fair value option - Narrative (
Fair value option - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Long-term debt, carrying amount | $ 240 | |
Long-term debt, fair value | $ 369 | $ 363 |
Derivative instruments - Narrat
Derivative instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Loss (recovery) on derivative | $ 0 | $ 0 | ||||
Non-derivative financial instruments designated as hedges of net investments in foreign subsidiaries were all long-term liabilities of BNY Mellon in various currencies | $ 181,000,000 | |||||
Value-at-risk methodology assumed holding period for instruments | 1 day | |||||
Value-at-risk methodology confidence level percentage | 99.00% | |||||
Additional collateral The Bank of New York Mellon would have to post for existing collateral arrangements, if The Bank of New York Mellon's debt rating had fallen below investment grade | 151,000,000 | $ 151,000,000 | ||||
Securities available-for-sale | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedged financial instruments | 12,400,000,000 | 12,400,000,000 | ||||
Hedged financial instruments, notional amount of derivative | 12,333,000,000 | 12,333,000,000 | $ 9,233,000,000 | |||
Long-term debt | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedged financial instruments | 24,200,000,000 | 24,200,000,000 | ||||
Hedged financial instruments, notional amount of derivative | 24,200,000,000 | $ 24,200,000,000 | $ 20,450,000,000 | |||
Interest rate swap | Securities available-for-sale | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Original maturities, maximum, of hedged instruments | 30 years | |||||
Hedged financial instruments, notional amount of derivative | 12,300,000,000 | $ 12,300,000,000 | ||||
Interest rate swap | Long-term debt | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Original maturities, maximum, of hedged instruments | 30 years | |||||
Hedged financial instruments, notional amount of derivative | 24,200,000,000 | $ 24,200,000,000 | ||||
Original maturities, minimum, of hedged instruments | 5 years | |||||
Foreign exchange contracts | Cash flow hedges | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Pretax gain (loss) recorded in accumulated other comprehensive income | (2,000,000) | $ (8,000,000) | (24,000,000) | $ 4,000,000 | $ (115,000,000) | |
Foreign exchange contracts | Net investment hedging | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedged financial instruments, notional amount of derivative | 7,800,000,000 | 7,800,000,000 | ||||
Pretax gain (loss) recorded in accumulated other comprehensive income | (206,000,000) | $ (274,000,000) | $ 47,000,000 | $ (576,000,000) | $ 320,000,000 | |
Foreign exchange contracts | Maximum | Net investment hedging | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedging derivatives, maturities, maximum | 2 years | |||||
Foreign exchange contracts | Forecasted Foreign Currency | Cash flow hedges | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Original maturities, maximum, of hedged instruments | 9 months | |||||
Hedged financial instruments, notional amount of derivative | $ 539,000,000 | $ 539,000,000 | ||||
Pretax gain (loss) recorded in accumulated other comprehensive income | $ (9,000,000) | |||||
Foreign exchange contracts | Forecasted Foreign Currency | Maximum | Cash flow hedges | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Hedging derivatives, maturities, maximum | 9 months |
Derivative instruments - Ineffe
Derivative instruments - Ineffectiveness Related to Derivatives and Hedging Relationships Recorded in Income (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Ineffectiveness related to derivatives and hedging relationships | $ (13.2) | $ (28.4) |
Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Ineffectiveness related to derivatives and hedging relationships | 0 | 0 |
Fair value hedges of securities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Ineffectiveness related to derivatives and hedging relationships | (13.3) | (5.4) |
Fair value hedges of long-term debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Ineffectiveness related to derivatives and hedging relationships | 0.1 | (23) |
Cash flow hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Ineffectiveness related to derivatives and hedging relationships | $ 0 | $ 0 |
Derivative instruments - Impact
Derivative instruments - Impact of Derivative Instruments on the Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Asset derivatives fair value | $ 12,031 | $ 14,521 |
Asset derivatives fair value, effect of master netting agreements | (8,470) | (10,257) |
Total derivatives, Net assets recognized on the balance sheet | 3,561 | 4,264 |
Liability derivatives fair value | 12,097 | 14,448 |
Liability derivatives fair value, effect of master netting agreements | (8,875) | (10,047) |
Total derivatives, Net liabilities recognized on the balance sheet | 3,222 | 4,401 |
Master netting agreements, cash collateral received | 834 | 1,119 |
Master netting agreements, cash collateral paid | 1,239 | 909 |
Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives fair value, effect of master netting agreements | (5,301) | (6,047) |
Liability derivatives fair value, effect of master netting agreements | (5,705) | (6,634) |
Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives fair value, effect of master netting agreements | (3,120) | (4,172) |
Liability derivatives fair value, effect of master netting agreements | (3,095) | (3,363) |
Equity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives fair value, effect of master netting agreements | (49) | (38) |
Liability derivatives fair value, effect of master netting agreements | (75) | (50) |
Designated as hedging | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives fair value | 344 | 784 |
Liability derivatives fair value | 812 | 597 |
Designated as hedging | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional value | 36,533 | 29,683 |
Asset derivatives fair value | 307 | 415 |
Liability derivatives fair value | 494 | 545 |
Designated as hedging | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional value | 8,399 | 7,796 |
Asset derivatives fair value | 37 | 369 |
Liability derivatives fair value | 318 | 52 |
Not designated as hedging | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives fair value | 11,687 | 13,737 |
Liability derivatives fair value | 11,285 | 13,851 |
Not designated as hedging | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional value | 283,384 | 325,412 |
Asset derivatives fair value | 6,734 | 7,587 |
Liability derivatives fair value | 6,684 | 7,633 |
Not designated as hedging | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional value | 639,336 | 530,729 |
Asset derivatives fair value | 4,879 | 6,104 |
Liability derivatives fair value | 4,463 | 6,103 |
Not designated as hedging | Equity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional value | 1,354 | 1,167 |
Asset derivatives fair value | 74 | 46 |
Liability derivatives fair value | 134 | 112 |
Not designated as hedging | Credit contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional value | 180 | 160 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | $ 4 | $ 3 |
Derivative instruments - Impa93
Derivative instruments - Impact of Derivative Instruments in the Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair value hedging | Interest rate contracts | Net interest revenue | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) recognized in income on derivatives | $ (33) | $ 2 | $ (174) | $ (21) | $ (445) |
Gain or (loss) recognized in hedged item | 31 | (9) | 168 | 8 | 417 |
Cash flow hedges | Foreign exchange contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) recognized in accumulated OCI on derivatives (effective portion) | (2) | (8) | (24) | 4 | (115) |
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | (3) | (9) | (28) | (13) | (110) |
Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) | 0 | 0 | 0 | 0 | 0 |
Cash flow hedges | Foreign exchange contract one | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) recognized in accumulated OCI on derivatives (effective portion) | 0 | 0 | (7) | 0 | (16) |
Cash flow hedges | Foreign exchange contract one | Net interest revenue | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | 0 | 0 | (6) | 0 | (16) |
Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) | 0 | 0 | 0 | 0 | 0 |
Cash flow hedges | Foreign exchange contract two | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) recognized in accumulated OCI on derivatives (effective portion) | 3 | (1) | 0 | 2 | 0 |
Cash flow hedges | Foreign exchange contract two | Other revenue | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | 0 | 0 | 0 | 0 | 0 |
Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) | 0 | 0 | 0 | 0 | 0 |
Cash flow hedges | Foreign exchange contract three | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) recognized in accumulated OCI on derivatives (effective portion) | (1) | 0 | (19) | 2 | (89) |
Cash flow hedges | Foreign exchange contract three | Trading revenue | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | (1) | 0 | (19) | 2 | (89) |
Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) | 0 | 0 | 0 | 0 | 0 |
Cash flow hedges | Foreign exchange contract four | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) recognized in accumulated OCI on derivatives (effective portion) | (4) | (7) | 2 | 0 | (10) |
Cash flow hedges | Foreign exchange contract four | Salary expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | (2) | (9) | (3) | (15) | (5) |
Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) | 0 | 0 | 0 | 0 | 0 |
Net investment hedging | Foreign exchange contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) recognized in accumulated OCI on derivatives (effective portion) | (206) | (274) | 47 | (576) | 320 |
Net investment hedging | Foreign exchange contracts | Net interest revenue | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) reclassified from accumulated OCI into income (effective portion) | 0 | 0 | 0 | 0 | 0 |
Net investment hedging | Foreign exchange contracts | Other revenue | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain or (loss) recognized in income on derivatives (ineffectiveness portion and amount excluded from effectiveness testing) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative instruments - Revenu
Derivative instruments - Revenue from Foreign Exchange and Other Trading (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Foreign exchange | $ 158 | $ 151 | $ 175 | $ 463 | $ 512 |
Other trading revenue (loss) | 15 | 14 | 8 | 39 | 28 |
Total foreign exchange and other trading revenue | $ 173 | $ 165 | $ 183 | $ 502 | $ 540 |
Derivative instruments - Fair V
Derivative instruments - Fair Value of Derivative Contracts Falling under Early Termination Provisions in Net Liability Position (Details) $ in Millions | Sep. 30, 2017USD ($) |
A3 | A- | |
Credit Derivatives [Line Items] | |
Potential close-out exposures (fair value) | $ 92 |
Baa2 | BBB | |
Credit Derivatives [Line Items] | |
Potential close-out exposures (fair value) | 430 |
Ba1 | BB plus | |
Credit Derivatives [Line Items] | |
Potential close-out exposures (fair value) | $ 1,899 |
Derivative instruments - Offset
Derivative instruments - Offsetting (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative Asset [Abstract] | ||
Derivatives subject to netting arrangements, Gross assets recognized | $ 10,532 | $ 12,514 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 8,470 | 10,257 |
Derivatives subject to netting arrangements, Net assets recognized on the balance sheet | 2,062 | 2,257 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 271 | 523 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Derivative assets subject to netting arrangements, Net amount | 1,791 | 1,734 |
Total derivatives not subject to netting arrangements | 1,499 | 2,007 |
Total derivatives, Gross assets recognized | 12,031 | 14,521 |
Total derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 8,470 | 10,257 |
Total derivatives, Net assets recognized on the balance sheet | 3,561 | 4,264 |
Total derivatives, Net amount | 3,290 | 3,741 |
Reverse repurchase agreements, Gross assets recognized | 36,118 | 17,588 |
Reverse repurchase agreements, Gross amounts offset in the balance sheet | 19,171 | 481 |
Reverse repurchase agreements, Net assets recognized on the balance sheet | 16,947 | 17,107 |
Reverse repurchase agreements, Gross amounts not offset in the balance sheet, Financial instruments | 16,890 | 17,104 |
Reverse repurchase agreements, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Reverse repurchase agreements, Net amount | 57 | 3 |
Securities borrowing, Gross assets recognized | 10,936 | 8,694 |
Securities borrowing, Net assets recognized on the balance sheet | 10,936 | 8,694 |
Securities borrowing, Gross amounts not offset in the balance sheet, Financial instruments | 10,627 | 8,425 |
Securities borrowing, Net amount | 309 | 269 |
Total, Gross assets recognized | 59,085 | 40,803 |
Total, Gross amounts offset in the balance sheet | 27,641 | 10,738 |
Total, Net assets recognized on the balance sheet | 31,444 | 30,065 |
Total, Gross amounts not offset in the balance sheet, Financial instruments | 27,788 | 26,052 |
Total, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Total, Net amount | 3,656 | 4,013 |
Derivative Liability [Abstract] | ||
Derivatives subject to netting arrangements, Gross liabilities recognized | 11,307 | 13,177 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 8,875 | 10,047 |
Derivatives subject to netting arrangements, Net liabilities recognized on the balance sheet | 2,432 | 3,130 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 1,594 | 1,675 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Derivative liabilities subject to netting arrangements, Net amount | 838 | 1,455 |
Total derivatives not subject to netting arrangements | 790 | 1,271 |
Total derivatives, Gross liabilities recognized | 12,097 | 14,448 |
Total derivatives, Net liabilities recognized on the balance sheet | 3,222 | 4,401 |
Total derivatives, Net amount | 1,628 | 2,726 |
Repurchase agreements, Gross liabilities recognized | 27,321 | 8,703 |
Repurchase agreements, Gross amounts offset in the balance sheet | 19,171 | 481 |
Repurchase agreements, Net liabilities recognized on the balance sheet | 8,150 | 8,222 |
Repurchase agreements, Gross amounts not offset in the balance sheet, Financial instruments | 8,149 | 8,222 |
Repurchase agreements, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Repurchase agreements, Net amount | 1 | 0 |
Securities lending, Gross liabilities recognized | 1,904 | 1,615 |
Securities lending, Net liabilities recognized on the balance sheet | 1,904 | 1,615 |
Securities lending, Gross amounts not offset in the balance sheet, Financial instruments | 1,812 | 1,522 |
Securities lending, Net amount | 92 | 93 |
Total, Gross liabilities recognized | 41,322 | 24,766 |
Total, Gross amounts offset in the balance sheet | 28,046 | 10,528 |
Total, Net liabilities recognized on the balance sheet | 13,276 | 14,238 |
Total, Gross amounts not offset in the balance sheet, Financial instruments | 11,555 | 11,419 |
Total, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Total, Net amount | 1,721 | 2,819 |
Interest rate contracts | ||
Derivative Asset [Abstract] | ||
Derivatives subject to netting arrangements, Gross assets recognized | 6,182 | 7,205 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 5,301 | 6,047 |
Derivatives subject to netting arrangements, Net assets recognized on the balance sheet | 881 | 1,158 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 189 | 321 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Derivative assets subject to netting arrangements, Net amount | 692 | 837 |
Total derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 5,301 | 6,047 |
Derivative Liability [Abstract] | ||
Derivatives subject to netting arrangements, Gross liabilities recognized | 7,103 | 8,116 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 5,705 | 6,634 |
Derivatives subject to netting arrangements, Net liabilities recognized on the balance sheet | 1,398 | 1,482 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 1,311 | 1,266 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Derivative liabilities subject to netting arrangements, Net amount | 87 | 216 |
Foreign exchange contracts | ||
Derivative Asset [Abstract] | ||
Derivatives subject to netting arrangements, Gross assets recognized | 4,281 | 5,265 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 3,120 | 4,172 |
Derivatives subject to netting arrangements, Net assets recognized on the balance sheet | 1,161 | 1,093 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 82 | 202 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Derivative assets subject to netting arrangements, Net amount | 1,079 | 891 |
Total derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 3,120 | 4,172 |
Derivative Liability [Abstract] | ||
Derivatives subject to netting arrangements, Gross liabilities recognized | 4,074 | 4,957 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 3,095 | 3,363 |
Derivatives subject to netting arrangements, Net liabilities recognized on the balance sheet | 979 | 1,594 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 234 | 355 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Derivative liabilities subject to netting arrangements, Net amount | 745 | 1,239 |
Equity and other contracts | ||
Derivative Asset [Abstract] | ||
Derivatives subject to netting arrangements, Gross assets recognized | 69 | 44 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 49 | 38 |
Derivatives subject to netting arrangements, Net assets recognized on the balance sheet | 20 | 6 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 0 | 0 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral received | 0 | 0 |
Derivative assets subject to netting arrangements, Net amount | 20 | 6 |
Total derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 49 | 38 |
Derivative Liability [Abstract] | ||
Derivatives subject to netting arrangements, Gross liabilities recognized | 130 | 104 |
Derivatives subject to netting arrangements, Gross amounts offset in the balance sheet | 75 | 50 |
Derivatives subject to netting arrangements, Net liabilities recognized on the balance sheet | 55 | 54 |
Total derivatives, Gross amounts not offset in the balance sheet, Financial instruments | 49 | 54 |
Total derivatives, Gross amounts not offset in the balance sheet, Cash collateral pledged | 0 | 0 |
Derivative liabilities subject to netting arrangements, Net amount | $ 6 | $ 0 |
Derivative instruments - Secure
Derivative instruments - Secured Borrowings (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | $ 27,321 | $ 8,703 |
Securities lending | 1,904 | 1,615 |
Total borrowings | 29,225 | 10,318 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 24,721 | 7,003 |
Securities lending | 1,904 | 1,615 |
Total borrowings | 26,625 | 8,618 |
Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 300 | 400 |
Securities lending | 0 | 0 |
Total borrowings | 300 | 400 |
30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 2,300 | 1,300 |
Securities lending | 0 | 0 |
Total borrowings | 2,300 | 1,300 |
U.S. Treasury | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 21,432 | 2,492 |
U.S. Treasury | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 21,432 | 2,488 |
U.S. Treasury | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 4 |
U.S. Treasury | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
U.S. government agencies | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 599 | 406 |
Securities lending | 15 | 39 |
U.S. government agencies | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 489 | 396 |
Securities lending | 15 | 39 |
U.S. government agencies | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 110 | 10 |
Securities lending | 0 | 0 |
U.S. government agencies | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities lending | 0 | 0 |
Agency RMBS | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,988 | 3,680 |
Agency RMBS | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,798 | 3,294 |
Agency RMBS | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 190 | 386 |
Agency RMBS | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Corporate bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,222 | 998 |
Corporate bonds | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 282 | 304 |
Corporate bonds | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Corporate bonds | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 940 | 694 |
Other debt securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 1,125 | 709 |
Securities lending | 477 | 477 |
Other debt securities | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 254 | 146 |
Securities lending | 477 | 477 |
Other debt securities | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities lending | 0 | 0 |
Other debt securities | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 871 | 563 |
Securities lending | 0 | 0 |
Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 955 | 418 |
Securities lending | 1,412 | 1,099 |
Equity securities | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 466 | 375 |
Securities lending | 1,412 | 1,099 |
Equity securities | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities lending | 0 | 0 |
Equity securities | 30 days or more | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 489 | 43 |
Securities lending | $ 0 | $ 0 |
Commitments and contingent li98
Commitments and contingent liabilities - Summary of Off-Balance Sheet Credit Risks, Net of Participations (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Securities lending indemnifications, joint venture | $ 65,000 | $ 61,000 |
Lending commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit risks | 49,983 | 51,270 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit risks | 3,619 | 4,185 |
Off-balance sheet credit risks participations | 681 | 662 |
Commercial letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit risks | 265 | 339 |
Securities lending indemnifications | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit risks | $ 406,434 | $ 317,690 |
Commitments and contingent li99
Commitments and contingent liabilities - Standby Letters of Credits by Investment Grade (Details) - Standby letters of credit | Sep. 30, 2017 | Dec. 31, 2016 |
Investment grade | ||
Concentration Risk [Line Items] | ||
Standby letters of credit by investment grade | 86.00% | 89.00% |
Non-investment grade | ||
Concentration Risk [Line Items] | ||
Standby letters of credit by investment grade | 14.00% | 11.00% |
Commitments and contingent l100
Commitments and contingent liabilities - Significant Industry Concentrations Related to Credit Exposure (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | $ 59,068 | $ 64,458 |
Financial institutions | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 11,896 | 14,689 |
Unfunded commitments | 32,700 | |
Total exposure | 44,600 | |
Financial institutions | Securities Industry | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 2,900 | |
Unfunded commitments | 19,000 | |
Total exposure | 21,900 | |
Financial institutions | Asset managers | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 1,600 | |
Unfunded commitments | 6,500 | |
Total exposure | 8,100 | |
Financial institutions | Banks | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 6,300 | |
Unfunded commitments | 1,400 | |
Total exposure | 7,700 | |
Financial institutions | Insurance | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 100 | |
Unfunded commitments | 3,400 | |
Total exposure | 3,500 | |
Financial institutions | Government | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 0 | |
Unfunded commitments | 1,000 | |
Total exposure | 1,000 | |
Financial institutions | Other | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 1,000 | |
Unfunded commitments | 1,400 | |
Total exposure | 2,400 | |
Commercial | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 3,003 | $ 2,617 |
Unfunded commitments | 16,600 | |
Total exposure | 19,600 | |
Commercial | Manufacturing | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 1,400 | |
Unfunded commitments | 6,300 | |
Total exposure | 7,700 | |
Commercial | Services and other | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 900 | |
Unfunded commitments | 4,400 | |
Total exposure | 5,300 | |
Commercial | Energy and utilities | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 600 | |
Unfunded commitments | 4,500 | |
Total exposure | 5,100 | |
Commercial | Media and telecom | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loans | 100 | |
Unfunded commitments | 1,400 | |
Total exposure | $ 1,500 |
Commitments and contingent l101
Commitments and contingent liabilities - Narrative (Details) | Dec. 17, 2015claim | Feb. 29, 2016claim | Sep. 30, 2017USD ($)claim | Dec. 31, 2016USD ($) | Jun. 18, 2014trust |
Commitments and Contingencies Disclosure [Line Items] | |||||
Lending commitment maturing in less than one year | $ 29,800,000,000 | ||||
Lending commitment maturing in one to five years | 20,000,000,000 | ||||
Lending commitment maturing over five years | 158,000,000 | ||||
Allowance for lending-related commitments | $ 104,000,000 | $ 112,000,000 | |||
Maximum maturities of prearranged contract for a securities lending transaction | 90 days | ||||
Collateralization percentage generally required for a securities lending transaction with indemnification against broker default | 102.00% | ||||
Securities lending indemnifications, secured amount of collateral | $ 424,000,000,000 | 331,000,000,000 | |||
Securities lending indemnifications, joint venture | 65,000,000,000 | 61,000,000,000 | |||
Securities lending indemnifications, collateral joint venture | $ 69,000,000,000 | 64,000,000,000 | |||
Loss contingency, number of MBS trusts | trust | 253 | ||||
Matters Related to R. Allen Stanford | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Number of lawsuits or class actions (in claims) | claim | 15 | ||||
Matters Related to R. Allen Stanford, Putative Class Action | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Number of lawsuits or class actions (in claims) | claim | 2 | ||||
Brazilian Postalis Litigation | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Number of claims filed in period (in claims) | claim | 3 | ||||
Depositary Receipt Litigation | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Number of claims filed in period (in claims) | claim | 4 | ||||
Federal Court, Southern District of New York, Breach of Contract and Violation of ERISA | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Number of lawsuits or class actions (in claims) | claim | 2 | ||||
Maximum | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Loss contingency, aggregate range of reasonable loss (up to) | $ 940,000,000 | ||||
Standby letters of credit | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Standby letters of credit (SBLC) collateralized with cash and securities | 178,000,000 | 293,000,000 | |||
SBLC expiring within one year | 2,300,000,000 | ||||
SBLC expiring within one to five years | 1,200,000,000 | ||||
Standby Letters Of Credit Expiring After Five Year | 48,000,000 | ||||
Commercial letters of credit | 3,619,000,000 | 4,185,000,000 | |||
Commercial letters of credit | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Commercial letters of credit | $ 265,000,000 | $ 339,000,000 |
Lines of business - Narrative (
Lines of business - Narrative (Details) | 9 Months Ended |
Sep. 30, 2017business | |
Segment Reporting [Abstract] | |
Number of principal businesses (segment) | 2 |
Lines of business - Contributio
Lines of business - Contribution of Segments to Overall Profitability (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | |||||
Fee and other revenue | $ 3,167 | $ 3,120 | $ 3,150 | $ 9,305 | $ 9,119 |
Net interest revenue (expense) | 839 | 826 | 774 | 2,457 | 2,307 |
Provision for credit losses | (6) | (7) | (19) | (18) | (18) |
Income from consolidated investment management funds, net of noncontrolling interests | 1,018 | 975 | 987 | 2,915 | 2,677 |
Investment income (loss), net | 10 | 10 | 17 | 53 | 21 |
Net income (loss) attributable to noncontrolling interests | 2 | 1 | 6 | 18 | (1) |
Investment Management | |||||
Segment Reporting Information [Line Items] | |||||
Net income (loss) attributable to noncontrolling interests | 3 | 3 | 9 | 24 | 6 |
Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Fee and other revenue | 3,174 | 3,127 | 3,159 | 9,334 | 9,135 |
Net interest revenue (expense) | 839 | 826 | 774 | 2,457 | 2,307 |
Total revenue | 4,013 | 3,953 | 3,933 | 11,791 | 11,442 |
Provision for credit losses | (6) | (7) | (19) | (18) | (18) |
Noninterest expense | 2,653 | 2,653 | 2,641 | 7,945 | 7,886 |
Income before taxes | $ 1,366 | $ 1,307 | $ 1,311 | $ 3,864 | $ 3,574 |
Pre-tax operating margin | 34.00% | 33.00% | 33.00% | 33.00% | 31.00% |
Average assets | $ 345,709 | $ 342,515 | $ 351,230 | $ 341,510 | $ 363,290 |
Net income (loss) attributable to noncontrolling interests | (1) | (2) | (2) | (6) | (6) |
Operating segments | Investment Management | |||||
Segment Reporting Information [Line Items] | |||||
Fee and other revenue | 918 | 899 | 876 | 2,694 | 2,544 |
Net interest revenue (expense) | 82 | 87 | 82 | 255 | 247 |
Total revenue | 1,000 | 986 | 958 | 2,949 | 2,791 |
Provision for credit losses | (2) | 0 | 0 | 1 | 0 |
Noninterest expense | 702 | 698 | 702 | 2,083 | 2,084 |
Income before taxes | $ 300 | $ 288 | $ 256 | $ 865 | $ 707 |
Pre-tax operating margin | 30.00% | 29.00% | 27.00% | 29.00% | 25.00% |
Average assets | $ 31,689 | $ 31,355 | $ 30,392 | $ 31,372 | $ 30,048 |
Income from consolidated investment management funds, net of noncontrolling interests | 7 | 7 | 8 | 29 | 15 |
Investment income (loss), net | 10 | 10 | 17 | 53 | 21 |
Net income (loss) attributable to noncontrolling interests | 3 | 3 | 9 | 24 | 6 |
Operating segments | Investment Services | |||||
Segment Reporting Information [Line Items] | |||||
Fee and other revenue | 2,187 | 2,115 | 2,183 | 6,386 | 6,267 |
Net interest revenue (expense) | 777 | 761 | 715 | 2,245 | 2,084 |
Total revenue | 2,964 | 2,876 | 2,898 | 8,631 | 8,351 |
Provision for credit losses | (2) | (3) | 1 | (5) | 8 |
Noninterest expense | 1,874 | 1,927 | 1,851 | 5,650 | 5,518 |
Income before taxes | $ 1,092 | $ 952 | $ 1,046 | $ 2,986 | $ 2,825 |
Pre-tax operating margin | 37.00% | 33.00% | 36.00% | 35.00% | 34.00% |
Average assets | $ 252,461 | $ 254,724 | $ 275,714 | $ 252,675 | $ 275,410 |
Operating segments | Other | |||||
Segment Reporting Information [Line Items] | |||||
Fee and other revenue | 69 | 113 | 100 | 254 | 324 |
Net interest revenue (expense) | (20) | (22) | (23) | (43) | (24) |
Total revenue | 49 | 91 | 77 | 211 | 300 |
Provision for credit losses | (2) | (4) | (20) | (14) | (26) |
Noninterest expense | 77 | 28 | 88 | 212 | 284 |
Income before taxes | (26) | 67 | 9 | 13 | 42 |
Average assets | $ 61,559 | $ 56,436 | $ 45,124 | $ 57,463 | $ 57,832 |
Supplemental information to 104
Supplemental information to the Consolidated Statement of Cash Flows- Noncash Investing and Financing Transactions that are Not Reflected in Consolidated Statement of Cash Flows (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | ||
Transfers from loans to other assets for other real estate owned (“OREO”) | $ 3 | $ 4 |
Change in assets of consolidated VIEs | 429 | 392 |
Change in liabilities of consolidated VIEs | 288 | 14 |
Change in nonredeemable noncontrolling interests of consolidated investment management funds | 234 | 238 |
Securities purchased not settled | 1,277 | 229 |
Securities sales not settled | 0 | 218 |
Securities matured not settled | 350 | 0 |
Held-to-maturity securities transferred to available-for-sale | 74 | 10 |
Premises and equipment/capitalized software funded by capital lease obligations | $ 347 | $ 12 |