Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 29, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | STATE STREET Corp | |
Entity Central Index Key | 0000093751 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 373,163,922 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fee revenue: | ||
Servicing fees | $ 1,251 | $ 1,421 |
Management fees | 420 | 472 |
Foreign exchange trading services | 280 | 304 |
Securities finance | 118 | 141 |
Processing fees and other | 191 | 77 |
Total fee revenue | 2,260 | 2,415 |
Net interest income: | ||
Interest income | 1,027 | 857 |
Interest expense | 354 | 214 |
Net interest income | 673 | 643 |
Gains (losses) related to investment securities, net: | ||
Gains (losses) from sales of available-for-sale securities, net | 0 | (1) |
Losses from other-than-temporary impairment | (1) | (1) |
Gains (losses) related to investment securities, net | (1) | (2) |
Total revenue | 2,932 | 3,056 |
Provision for loan losses | 4 | 0 |
Expenses: | ||
Compensation and employee benefits | 1,229 | 1,249 |
Information systems and communications | 362 | 315 |
Transaction processing services | 242 | 254 |
Occupancy | 116 | 120 |
Acquisition and restructuring costs | 9 | 0 |
Amortization of other intangible assets | 60 | 50 |
Other | 275 | 280 |
Total expenses | 2,293 | 2,268 |
Income before income tax expense | 635 | 788 |
Income tax expense | 127 | 129 |
Net income | 508 | 659 |
Net income available to common shareholders | $ 452 | $ 603 |
Earnings per common share: | ||
Basic (in USD per share) | $ 1.20 | $ 1.64 |
Diluted (in USD per share) | $ 1.18 | $ 1.62 |
Average common shares outstanding (in thousands): | ||
Basic (in shares) | 377,915 | 367,439 |
Diluted (in shares) | 381,703 | 372,619 |
Cash dividends declared (in USD per share) | $ 0.47 | $ 0.42 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 508 | $ 659 |
Other comprehensive income (loss), net of related taxes: | ||
Foreign currency translation, net of related taxes of ($8), $21 and ($11), respectively | (26) | 151 |
Net unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment and net of related taxes of ($134), $272 and ($119), respectively | 272 | (149) |
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes of $9, $16 and $16, respectively | (2) | 18 |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of $2, $3 and $5, respectively | 0 | 0 |
Net unrealized gains (losses) on cash flow hedges, net of related taxes of ($17), ($181) and ($42), respectively | 24 | (97) |
Net unrealized gains (losses) on retirement plans, net of related taxes of $8, $8 and $1, respectively | (8) | 12 |
Other comprehensive income (loss) | 260 | (65) |
Total comprehensive income | $ 768 | $ 594 |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation, Taxes | $ (3) | $ 52 |
Change in net unrealized losses on available-for-sale securities, Taxes | 108 | (102) |
Change in net unrealized losses on available-for-sale securities designated in fair value hedges, Taxes | (1) | 7 |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, Taxes | (1) | 2 |
Change in net unrealized losses on cash flow hedges, Taxes | 9 | (19) |
Change in unrealized losses on retirement plans, Taxes | $ (4) | $ 3 |
Consolidated Statement of Condi
Consolidated Statement of Condition - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and due from banks | $ 4,469 | $ 3,597 |
Interest-bearing deposits with banks | 53,864 | 73,040 |
Securities purchased under resale agreements | 1,522 | 4,679 |
Trading account assets | 856 | 860 |
Investment securities available-for-sale | 49,002 | 45,148 |
Investment securities held-to-maturity (fair value of $40,971 and $41,351) | 41,145 | 41,914 |
Loans and leases (less allowance for losses of $70 and $67) | 23,311 | 25,722 |
Premises and equipment (net of accumulated depreciation of $3,937 and $4,152) | 2,230 | 2,214 |
Accrued interest and fees receivable | 3,277 | 3,203 |
Goodwill | 7,549 | 7,446 |
Other intangible assets | 2,208 | 2,369 |
Other assets | 38,899 | 34,404 |
Total assets | 228,332 | 244,596 |
Deposits: | ||
Non-interest-bearing | 35,295 | 44,804 |
Interest-bearing - U.S. | 62,988 | 66,235 |
Interest-bearing - non-U.S. | 64,188 | 69,321 |
Total deposits | 162,471 | 180,360 |
Securities sold under repurchase agreements | 1,420 | 1,082 |
Other short-term borrowings | 947 | 3,092 |
Accrued expenses and other liabilities | 27,274 | 24,232 |
Long-term debt | 11,182 | 11,093 |
Total liabilities | 203,294 | 219,859 |
Commitments, guarantees and contingencies (Notes 9 and 10) | ||
Shareholders’ equity: | ||
Common stock, $1 par, 750,000,000 shares authorized: 503,879,642 and 503,879,642 shares issued, and 376,720,715 and 379,946,724 shares outstanding | 504 | 504 |
Surplus | 10,082 | 10,061 |
Retained earnings | 20,911 | 20,553 |
Accumulated other comprehensive income (loss) | (1,180) | (1,356) |
Treasury stock, at cost (127,158,927 and 123,932,918 shares) | (8,969) | (8,715) |
Total shareholders’ equity | 25,038 | 24,737 |
Total liabilities and shareholders' equity | 228,332 | 244,596 |
Series C Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, Series G, 5,000 shares issued and outstanding, and Series H, 5,000 shares issued and outstanding | 491 | 491 |
Series D Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, Series G, 5,000 shares issued and outstanding, and Series H, 5,000 shares issued and outstanding | 742 | 742 |
Series E Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, Series G, 5,000 shares issued and outstanding, and Series H, 5,000 shares issued and outstanding | 728 | 728 |
Series F Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, Series G, 5,000 shares issued and outstanding, and Series H, 5,000 shares issued and outstanding | 742 | 742 |
Series G Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, Series G, 5,000 shares issued and outstanding, and Series H, 5,000 shares issued and outstanding | 493 | 493 |
Series H Preferred Stock | ||
Shareholders’ equity: | ||
Preferred stock, no par: 3,500,000 shares authorized; Series C, 5,000 shares issued and outstanding, Series D, 7,500 shares issued and outstanding, Series E, 7,500 shares issued and outstanding, Series F, 7,500 shares issued and outstanding, Series G, 5,000 shares issued and outstanding, and Series H, 5,000 shares issued and outstanding | $ 494 | $ 494 |
Consolidated Statement of Con_2
Consolidated Statement of Condition (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Investment securities held-to-maturity, fair value | $ 40,971 | $ 41,351 |
Loans and leases, allowance for losses | 70 | 67 |
Premises and equipment, accumulated depreciation | $ 3,937 | $ 4,152 |
Stockholders' Equity: | ||
Preferred stock, no par value (in USD per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 3,500,000 | 3,500,000 |
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 503,879,642 | 503,879,642 |
Common stock, shares outstanding (in shares) | 376,720,715 | 379,946,724 |
Treasury stock, shares (in shares) | 127,158,927 | 123,932,918 |
Series C Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 5,000 | 5,000 |
Preferred stock, shares outstanding (in shares) | 5,000 | 5,000 |
Series D Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 7,500 | 7,500 |
Preferred stock, shares outstanding (in shares) | 7,500 | 7,500 |
Series E Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 7,500 | 7,500 |
Preferred stock, shares outstanding (in shares) | 7,500 | 7,500 |
Series F Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 7,500 | 7,500 |
Preferred stock, shares outstanding (in shares) | 7,500 | 7,500 |
Series G Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 5,000 | 5,000 |
Preferred stock, shares outstanding (in shares) | 5,000 | 5,000 |
Series H Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 5,000 | 5,000 |
Preferred stock, shares outstanding (in shares) | 5,000 | 5,000 |
Consolidated Statement of Chang
Consolidated Statement of Changes In Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Preferred Stock | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | ||
Beginning balance at Dec. 31, 2017 | $ 22,270 | $ 3,196 | $ 504 | $ 9,799 | $ 18,809 | $ (1,009) | $ (9,029) | ||
Beginning balance (shares) at Dec. 31, 2017 | 503,880 | 136,230 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 659 | 659 | |||||||
Other comprehensive income | (65) | (65) | |||||||
Cash dividends declared: | |||||||||
Common stock dividends | (154) | (154) | |||||||
Preferred stock cash dividend | (55) | (55) | |||||||
Common stock acquired | (350) | $ (350) | |||||||
Common stock acquired (shares) | 3,324 | ||||||||
Common stock awards exercised | 42 | (3) | $ 45 | ||||||
Common stock awards vested (shares) | (1,075) | ||||||||
Other | 3 | 3 | |||||||
Other (shares) | (7) | ||||||||
Ending balance at Mar. 31, 2018 | 22,350 | 3,196 | $ 504 | 9,796 | 19,262 | (1,074) | $ (9,334) | ||
Ending balance (shares) at Mar. 31, 2018 | 503,880 | 138,472 | |||||||
Beginning balance at Dec. 31, 2018 | 24,737 | 3,690 | $ 504 | 10,061 | 20,553 | (1,356) | $ (8,715) | ||
Beginning balance (shares) at Dec. 31, 2018 | 503,880 | 123,933 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Reclassification of certain tax effects | (84) | 84 | [1] | (84) | [1] | ||||
Net income | 508 | 508 | |||||||
Other comprehensive income | 260 | 260 | |||||||
Cash dividends declared: | |||||||||
Common stock dividends | (177) | (177) | |||||||
Preferred stock cash dividend | (55) | (55) | |||||||
Common stock acquired | (300) | $ (300) | |||||||
Common stock acquired (shares) | 4,230 | ||||||||
Common stock awards exercised | 71 | 26 | $ 45 | ||||||
Common stock awards vested (shares) | (1,002) | ||||||||
Other | (6) | (5) | (2) | $ 1 | |||||
Other (shares) | (2) | ||||||||
Ending balance at Mar. 31, 2019 | $ 25,038 | $ 3,690 | $ 504 | $ 10,082 | $ 20,911 | $ (1,180) | $ (8,969) | ||
Ending balance (shares) at Mar. 31, 2019 | 503,880 | 127,159 | |||||||
[1] | (1) Represents the reclassification from accumulated other comprehensive income into retained earnings as a result of our adoption of ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in the first quarter of 2019. |
Consolidated Statement of Cha_2
Consolidated Statement of Changes In Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (in USD per share) | $ 0.47 | $ 0.42 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Operating Activities: | |||
Net income | $ 508 | $ 659 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Deferred income tax (benefit) | (35) | (33) | |
Amortization of other intangible assets | 60 | 50 | $ 226 |
Other non-cash adjustments for depreciation, amortization and accretion, net | 244 | 248 | |
(Gains) losses related to investment securities, net | 1 | 2 | |
Change in trading account assets, net | 4 | (85) | |
Change in accrued interest and fees receivable, net | (74) | (84) | |
Change in collateral deposits, net | (1,527) | 6,011 | |
Change in unrealized (gains) losses on foreign exchange derivatives, net | (63) | (2,205) | |
Change in other assets, net | (732) | (993) | |
Change in accrued expenses and other liabilities, net | 976 | 1,091 | |
Other, net | 143 | 175 | |
Net cash (used in) provided by operating activities | (495) | 4,836 | |
Investing Activities: | |||
Net (increase) decrease in interest-bearing deposits with banks | 19,176 | (12,191) | |
Net (increase) decrease in securities purchased under resale agreements | 3,157 | (1,895) | |
Proceeds from sales of available-for-sale securities | 152 | 11,720 | |
Proceeds from maturities of available-for-sale securities | 3,959 | 4,438 | |
Purchases of available-for-sale securities | (7,408) | (3,922) | |
Proceeds from maturities of held-to-maturity securities | 2,606 | 1,155 | |
Purchases of held-to-maturity securities | (2,348) | (1,860) | |
Net decrease (increase) in loans and leases | 2,409 | ||
Net decrease (increase) in loans and leases | (6,280) | ||
Business acquisitions, net of cash acquired | (54) | 0 | |
Purchases of equity investments and other long-term assets | (71) | (8) | |
Purchases of premises and equipment, net | (171) | (147) | |
Other, net | 264 | 17 | |
Net cash provided by (used in) investing activities | 21,671 | (8,973) | |
Financing Activities: | |||
Net (decrease) in time deposits | (5,876) | (1,789) | |
Net (decrease) increase in all other deposits | (12,013) | 8,410 | |
Net increase (decrease) in other short-term borrowings | (1,807) | (900) | |
Payments for long-term debt and obligations under capital leases | (31) | (515) | |
Repurchases of common stock | (300) | (350) | |
Repurchases of common stock for employee tax withholding | (43) | (70) | |
Payments for cash dividends | (234) | (210) | |
Net cash (used in) provided by financing activities | (20,304) | 4,576 | |
Net increase | 872 | 439 | |
Cash and due from banks at beginning of period | 3,597 | 2,107 | 2,107 |
Cash and due from banks at end of period | $ 4,469 | $ 2,546 | $ 3,597 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accounting and financial reporting policies of State Street Corporation conform to U.S. GAAP. State Street Corporation, the Parent Company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to “State Street,” “we,” “us,” “our” or similar references mean State Street Corporation and its subsidiaries on a consolidated basis, including our principal banking subsidiary, State Street Bank. The accompanying consolidated financial statements should be read in conjunction with the financial and risk factor information included in our 2018 Form 10-K, which we previously filed with the SEC. The consolidated financial statements accompanying these condensed notes are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the consolidated results of operations in these financial statements, have been made. Certain previously reported amounts presented in this Form 10-Q have been reclassified to conform to current-period presentation. Events occurring subsequent to the date of our consolidated statement of condition were evaluated for potential recognition or disclosure in our consolidated financial statements through the date we filed this Form 10-Q with the SEC. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates. These accounting estimates reflect the best judgment of management, but actual results could differ. Our consolidated statement of condition as of December 31, 2018 included in the accompanying consolidated financial statements was derived from the audited financial statements as of that date, but does not include all notes required by U.S. GAAP for a complete set of consolidated financial statements. Recent Accounting Developments Relevant standards that were recently issued but not yet adopted as of March 31, 2019: Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The standard replaces the existing incurred loss impairment guidance and requires immediate recognition of expected credit losses for financial assets carried at amortized cost, including trade and other receivables, loans and commitments, held-to-maturity debt securities and other financial assets, held at the reporting date to be measured based on historical experience, current conditions and reasonable supportable forecasts. The standard also amends existing impairment guidance for available-for-sale securities, and credit losses will be recorded as an allowance versus a write-down of the amortized cost basis of the security and will allow for a reversal of impairment loss when the credit of the issuer improves. The guidance requires a cumulative effect of initial application to be recognized in retained earnings at the date of initial application. January 1, 2020, early adoption permitted We are continuing to assess the impact of the standard on our consolidated financial statements. We have established a steering committee to provide cross-functional governance over the project plan and key decisions, and continue to develop key accounting policies, assess new and existing credit loss models and processes and address data requirements and sources to ensure that the expected credit losses are calculated in accordance with the standard. We have developed credit loss models that are currently under review by our Model Validation Group. Based on our analysis to date, we expect the recognition of credit losses to accelerate under the new standard. We are continuing to assess the extent of the impact on the allowance for credit losses which will be impacted by our portfolio and the macroeconomic factors on the date of adoption. We plan to adopt the new guidance on January 1, 2020. ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The standard simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The ASU requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. January 1, 2020, early adoption permitted We are evaluating the impacts of early adoption, and will apply this standard prospectively upon adoption. ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement The standard eliminates, amends and adds disclosure requirements for fair value measurements. January 1, 2020, early adoption permitted, including partial early adoption. Provisions that eliminate or amend disclosures can be early adopted without early adopting the new disclosure requirements. We have elected to early adopt the provisions of the new standard that eliminate or amend disclosures as of December 31, 2018 and our disclosures were modified accordingly. The provisions of the new standard that add disclosures will be adopted upon the effective date of the standard. ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement. That Is a Service Contract (a consensus of the Financial Accounting Standards Board Emerging Issues Task Force) This standard addresses accounting for fees paid by a customer for implementation, set-up and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor, i.e., a service contract. The new guidance aligns treatment for capitalization of implementation costs with guidance on internal-use software. January 1, 2020, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. Relevant standards that were adopted in the first quarter of 2019: We adopted ASU 2016-02, Leases (Topic 842) and relevant amendments, effective January 1, 2019. The standard represents a change to lease accounting and requires all leases, other than short-term leases, to be reported on the balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires incremental disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities. We adopted Topic 842 by applying the transition method whereby comparative periods have not been restated, and no adjustment to retained earnings was required. Upon adoption of the standard, we recognized right-of-use assets of approximately $0.9 billion and lease liabilities of approximately $1.1 billion . This increase largely relates to the present value of future minimum lease payments due under existing operating leases of office space. No material changes are expected to the recognition of lease expenses in the Consolidated Statement of Income as a result of the adoption of Topic 842. For adoption, we elected Topic 842’s package of three practical expedients, and (1) did not reassess whether any expired or existing contracts are or contain leases, (2) did not reassess the lease classification for any expired or existing leases, and (3) did not reassess initial direct costs for any existing leases. In addition, we made an accounting policy election not to apply the recognition requirements to short-term leases, and elected the practical expedient to not separate lease and nonlease components of leases. We adopted ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium amortization on Purchased Callable Debt Securities, effective January 1, 2019. The standard shortens the amortization period for certain purchased callable debt securities to the earliest call date. The standard does not impact debt securities which are held at a discount. The guidance requires a cumulative effect of initial application to be recognized in retained earnings at the beginning of the period of adoption. The impact to beginning retained earnings was not material. We adopted ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, effective January 1, 2019. This standard provides an election to reclassify the stranded tax effects resulting from the enactment of the Tax Cuts and Jobs Act of 2017, from accumulated other comprehensive income to retained earnings. Upon adoption of the standard we reclassified approximately $84 million of stranded tax effects. Change in Accounting Policy In the first quarter of 2019 , we voluntarily changed our accounting method under FASB ASC 323, Investments-Equity Method and Joint Ventures, for investments in LIHTC from the equity method of accounting to the proportional amortization method of accounting. While both methods of accounting are acceptable under U.S. GAAP, we believe the proportional method is preferable because it more fairly represents the economics of investments in LIHTC, which are made primarily for the purpose of receiving tax credits and other tax benefits. In addition, this method aligns to the method typically used by the companies within our industry which have similar investments. In addition to the change in the timing of the recognition of income on investments in LIHTC, amortization of the investments in LIHTC is now recorded fully within the income tax expense line instead of the processing fees and other line on the consolidated statements of operations. This change in accounting method has been applied retrospectively to all prior periods presented herein being revised, resulting in a reduction in the opening balance of retained earnings as of January 1, 2018 of $47 million . In addition, the following table presents the effect of the changes on financial statement line items for prior periods presented: Consolidated Statement of Condition Impact December 31, 2018 (In millions) As Originally Reported (1) Effect of Change As Adjusted Assets: Other assets $ 34,434 $ (30 ) $ 34,404 Total assets $ 244,626 $ (30 ) $ 244,596 Liabilities and stockholders' equity: Accrued expenses and other liabilities $ 24,209 $ 23 $ 24,232 Retained earnings 20,606 (53 ) 20,553 Total liabilities and stockholders' equity $ 244,626 $ (30 ) $ 244,596 Consolidated Statement of Income Impact Three Months Ended March 31, 2018 (Dollars in millions, except per share amounts) As Originally Reported (1) Effect of Change As Adjusted Processing fees and other $ 52 $ 25 $ 77 Total fee revenue 2,390 25 2,415 Income tax expense 102 27 129 Net income $ 661 $ (2 ) $ 659 Earnings per common share: Basic $ 1.65 $ (.01 ) $ 1.64 Diluted 1.62 — 1.62 (1) In the first quarter of 2019, we reclassified certain immaterial revenues and expenses related to an affiliated entity from a net presentation to a gross presentation. Previously reported amounts for quarterly periods in 2018 have been reclassified to conform to the 2019 presentation. The impact of change to the statement of cash flows is immaterial. The following table presents what our results would have been had we continued to utilize the equity method to record investments in LIHTC in the first quarter of 2019: Consolidated Statement of Income Impact Three Months Ended March 31, 2019 (Dollars in millions, except per share amounts) As Computed under Equity Method Effect of Change As Reported under the Proportional Amortization Method Processing fees and other $ 169 $ 22 $ 191 Total fee revenue 2,238 22 22 2,260 Income tax expense 105 22 22 127 Net income $ 508 $ — $ 508 Earnings per common share: Basic $ 1.20 $ — $ 1.20 Diluted 1.18 — 1.18 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair Value Measurements We carry trading account assets and liabilities, AFS debt securities, certain equity securities and various types of derivative financial instruments, at fair value in our consolidated statement of condition on a recurring basis. Changes in the fair values of these financial assets and liabilities are recorded either as components of our consolidated statement of income or as components of AOCI within shareholders' equity in our consolidated statement of condition. We measure fair value for the above-described financial assets and liabilities in conformity with U.S. GAAP that governs the measurement of the fair value of financial instruments. Management believes that its valuation techniques and underlying assumptions used to measure fair value conform to the provisions of U.S. GAAP. We categorize the financial assets and liabilities that we carry at fair value based on a prescribed three-level valuation hierarchy. For information about our valuation techniques for financial assets and financial liabilities measured at fair value and the fair value hierarchy, refer to pages 129 to 136 in Note 2 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2018 Form 10-K. The following tables present information with respect to our financial assets and liabilities carried at fair value in our consolidated statement of condition on a recurring basis as of the dates indicated: Fair Value Measurements on a Recurring Basis As of March 31, 2019 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 34 $ — $ — $ 34 Non-U.S. government securities 148 176 — 324 Other — 498 — 498 Total trading account assets 182 674 — 856 Available-for-sale investment securities: U.S. Treasury and federal agencies: Direct obligations 1,041 — — 1,041 Mortgage-backed securities — 20,043 — 20,043 Total U.S. Treasury and federal agencies 1,041 20,043 — 21,084 Asset-backed securities: Student loans — 481 — 481 Credit cards — 586 — 586 Collateralized loan obligations — 218 668 886 Total asset-backed securities — 1,285 668 1,953 Non-U.S. debt securities: Mortgage-backed securities — 1,517 — 1,517 Asset-backed securities — 884 627 1,511 Government securities — 12,572 — 12,572 Other (2) — 6,531 45 6,576 Total non-U.S. debt securities — 21,504 672 22,176 State and political subdivisions — 1,940 — 1,940 Collateralized mortgage obligations — 129 — 129 Other U.S. debt securities — 1,720 — 1,720 Total available-for-sale investment securities 1,041 46,621 1,340 49,002 Other assets: Derivative instruments: Foreign exchange contracts — 11,140 4 $ (6,966 ) 4,178 Total derivative instruments — 11,140 4 (6,966 ) 4,178 Other — 442 — — 442 Total assets carried at fair value $ 1,223 $ 58,877 $ 1,344 $ (6,966 ) $ 54,478 Liabilities: Accrued expenses and other liabilities: Derivative instruments: Foreign exchange contracts $ — $ 11,297 $ 3 $ (7,519 ) $ 3,781 Interest rate contracts 17 52 — — 69 Other derivative contracts — 228 — — 228 Total derivative instruments 17 11,577 3 (7,519 ) 4,078 Total liabilities carried at fair value $ 17 $ 11,577 $ 3 $ (7,519 ) $ 4,078 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between us and the counterparty. Netting also reflects asset and liability reductions of $0.64 billion and $1.19 billion , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of March 31, 2019 , the fair value of other non-U.S. debt securities included $1.05 billion of covered bonds and $1.33 billion of corporate bonds. Fair Value Measurements on a Recurring Basis As of December 31, 2018 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 34 $ — $ — $ 34 Non-U.S. government securities 146 179 — 325 Other — 501 — 501 Total trading account assets 180 680 — 860 Available-for-sale investment securities: U.S. Treasury and federal agencies: Direct obligations 1,039 — — 1,039 Mortgage-backed securities — 15,968 — 15,968 Total U.S. Treasury and federal agencies 1,039 15,968 — 17,007 Asset-backed securities: Student loans — 541 — 541 Credit cards — 583 — 583 Collateralized loan obligations — — 593 593 Total asset-backed securities — 1,124 593 1,717 Non-U.S. debt securities: Mortgage-backed securities — 1,682 — 1,682 Asset-backed securities — 943 631 1,574 Government securities — 12,793 — 12,793 Other (2) — 6,544 58 6,602 Total non-U.S. debt securities — 21,962 689 22,651 State and political subdivisions — 1,918 — 1,918 Collateralized mortgage obligations — 195 2 197 Other U.S. debt securities — 1,658 — 1,658 Total available-for-sale investment securities 1,039 42,825 1,284 45,148 Other assets: Derivative instruments: Foreign exchange contracts — 16,382 4 $ (11,210 ) 5,176 Interest rate contracts 13 — — — 13 Total derivative instruments 13 16,382 4 (11,210 ) 5,189 Other — 395 — — 395 Total assets carried at fair value $ 1,232 $ 60,282 $ 1,288 $ (11,210 ) $ 51,592 Liabilities: Accrued expenses and other liabilities: Derivative instruments: Foreign exchange contracts $ — $ 16,518 $ 4 $ (11,564 ) $ 4,958 Interest rate contracts — 71 — — 71 Other derivative contracts — 214 — — 214 Total derivative instruments — 16,803 4 (11,564 ) 5,243 Total liabilities carried at fair value $ — $ 16,803 $ 4 $ (11,564 ) $ 5,243 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between us and the counterparty. Netting also reflects asset and liability reductions of $0.99 billion and $1.34 billion , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of December 31, 2018 , the fair value of other non-U.S. debt securities included $1.30 billion of covered bonds and $1.33 billion of corporate bonds. The following tables present activity related to our level 3 financial assets during the first quarters of 2019 and 2018 , respectively. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the first quarter of 2018 , transfers into level 3 were primarily related to certain ABS, including non-US debt securities. During the first quarter of 2019 , there were no transfers into level 3. During the first quarters of 2019 and 2018 , transfers out of level 3 were mainly related to certain ABS, municipal bonds and non-U.S. MBS, for which fair value was measured using prices for which observable market information became available. Fair Value Measurements Using Significant Unobservable Inputs Three Months Ended March 31, 2019 Fair Value as of Total Realized and Purchases Sales Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value as of March 31, 2019 (1) Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of March 31, 2019 (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: Available-for-sale Investment securities: Asset-backed securities: Collateralized loan obligations $ 593 $ 1 $ (2 ) $ 132 $ — $ (56 ) $ — $ — $ 668 Total asset-backed securities 593 1 (2 ) 132 — (56 ) — — 668 Non-U.S. debt securities: Asset-backed securities 631 — (2 ) 9 — (11 ) — — 627 Other 58 — — — — (1 ) — (12 ) 45 Total non-U.S. debt securities 689 — (2 ) 9 — (12 ) — (12 ) 672 Collateralized mortgage obligations 2 — — — — (2 ) — — — Total Available-for-sale investment securities 1,284 1 (4 ) 141 — (70 ) — (12 ) 1,340 Derivative instruments: Foreign exchange contracts 4 (3 ) — 3 — — — — 4 $ (1 ) Total derivative instruments 4 (3 ) — 3 — — — — 4 (1 ) Total assets carried at fair value $ 1,288 $ (2 ) $ (4 ) $ 144 $ — $ (70 ) $ — $ (12 ) $ 1,344 $ (1 ) (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within f oreign exchange trading services. Fair Value Measurements Using Significant Unobservable Inputs Three Months Ended March 31, 2018 Fair Value as of December 31, 2017 Total Realized and Purchases Sales Settlements Transfers Transfers Fair Value as of March 31, 2018 (1) Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of March 31, 2018 (In millions) Recorded (1) Recorded (1) Assets: Available-for-sale Investment securities: Asset-backed securities: Collateralized loan obligations $ 1,358 $ 1 $ (1 ) $ 318 $ (636 ) $ (5 ) $ — $ (209 ) $ 826 Total asset-backed securities 1,358 1 (1 ) 318 (636 ) (5 ) — (209 ) 826 Non-U.S. debt securities: Mortgage-backed securities 119 — — — — — — (119 ) — Asset-backed securities 402 — — 110 (310 ) 2 68 — 272 Other 204 — — — — (26 ) — — 178 Total non-U.S. debt securities 725 — — 110 (310 ) (24 ) 68 (119 ) 450 State and political subdivisions 43 — — — — (1 ) — (5 ) 37 Total Available-for-sale investment securities 2,126 1 (1 ) 428 (946 ) (30 ) 68 (333 ) 1,313 Other assets: Derivative instruments: Foreign exchange contracts 1 (2 ) — 4 — — — — 3 $ (2 ) Total derivative instruments 1 (2 ) — 4 — — — — 3 (2 ) Total assets carried at fair value $ 2,127 $ (1 ) $ (1 ) $ 432 $ (946 ) $ (30 ) $ 68 $ (333 ) $ 1,316 $ (2 ) (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within foreign exchange trading services. The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level 3 financial assets and liabilities measured at fair value on a recurring basis for which we use internally-developed pricing models. The significant unobservable inputs for our level 3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker/dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer. Quantitative Information about Level 3 Fair Value Measurements Fair Value Weighted-Average (Dollars in millions) As of March 31, 2019 As of December 31, 2018 Valuation Technique Significant Unobservable Input (1) As of March 31, 2019 As of December 31, 2018 Significant unobservable inputs readily available to State Street: Assets: Derivative Instruments, foreign exchange contracts $ 4 $ 4 Option model Volatility 7.8 % 11.4 % Total $ 4 $ 4 Liabilities: Derivative instruments, foreign exchange contracts $ 3 $ 4 Option model Volatility 7.3 % 11.4 % Total $ 3 $ 4 (1) Significant changes in these unobservable inputs may result in significant changes in fair value measurement of the derivative instrument. Fair Value Estimates Estimates of fair value for financial instruments not carried at fair value on a recurring basis in our consolidated statement of condition are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information. The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value on a recurring basis, as they would be categorized within the fair value hierarchy, as of the dates indicated: Fair Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) March 31, 2019 Financial Assets: Cash and due from banks $ 4,469 $ 4,469 $ 4,469 $ — $ — Interest-bearing deposits with banks 53,864 53,864 — 53,864 — Securities purchased under resale agreements 1,522 1,522 — 1,522 — Investment securities held-to-maturity 41,145 40,971 13,198 27,652 121 Net loans 23,311 23,288 — 22,245 1,043 Other (1) 8,500 8,500 — 8,500 — Financial Liabilities: Deposits: Non-interest-bearing $ 35,295 $ 35,295 $ — $ 35,295 $ — Interest-bearing - U.S. 62,988 62,988 — 62,988 — Interest-bearing - non-U.S. 64,188 64,188 — 64,188 — Securities sold under repurchase agreements 1,420 1,420 — 1,420 — Other short-term borrowings 947 947 — 947 — Long-term debt 11,182 11,319 — 11,142 177 Other (1) 8,500 8,500 — 8,500 — (1) Represents a portion of underlying client assets related to our enhanced custody business, which clients have allowed us to transfer and re-pledge. Fair Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) December 31, 2018 Financial Assets: Cash and due from banks $ 3,597 $ 3,597 $ 3,597 $ — $ — Interest-bearing deposits with banks 73,040 73,040 — 73,040 — Securities purchased under resale agreements 4,679 4,679 — 4,679 — Investment securities held-to-maturity 41,914 41,351 14,541 26,688 122 Net loans (excluding leases) (1) 25,722 25,561 — 24,648 913 Other (2) 8,500 8,500 — 8,500 — Financial Liabilities: Deposits: Non-interest-bearing $ 44,804 $ 44,804 $ — $ 44,804 $ — Interest-bearing - U.S. 66,235 66,235 — 66,235 — Interest-bearing - non-U.S. 69,321 69,321 — 69,321 — Securities sold under repurchase agreements 1,082 1,082 — 1,082 — Other short-term borrowings 3,092 3,092 — 3,092 — Long-term debt 11,093 11,048 — 10,865 183 Other (2) 8,500 8,500 — 8,500 — (1) Includes $10 million of loans classified as held-for-sale that were measured at fair value on a non-recurring basis as of December 31, 2018 . (2) |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Investment securities held by us are classified as either trading account assets, AFS , HTM or equity securities held at fair value at the time of purchase and reassessed periodically, based on management’s intent. For additional information on our accounting for investment securities, refer to page 137 in Note 3 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2018 Form 10-K. The following table presents the amortized cost, fair value and associated unrealized gains and losses of AFS and HTM investment securities as of the dates indicated: March 31, 2019 December 31, 2018 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value (In millions) Gains Losses Gains Losses Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 1,035 $ 6 $ — $ 1,041 $ 1,035 $ 4 $ — $ 1,039 Mortgage-backed securities 20,020 132 109 20,043 16,112 37 181 15,968 Total U.S. Treasury and federal agencies 21,055 138 109 21,084 17,147 41 181 17,007 Asset-backed securities: Student loans (1) 477 4 — 481 538 4 1 541 Credit cards 612 — 26 586 609 — 26 583 Collateralized loan obligations 889 — 3 886 594 1 2 593 Total asset-backed securities 1,978 4 29 1,953 1,741 5 29 1,717 Non-U.S. debt securities: Mortgage-backed securities 1,520 1 4 1,517 1,687 — 5 1,682 Asset-backed securities 1,517 — 6 1,511 1,580 — 6 1,574 Government securities 12,489 97 14 12,572 12,816 22 45 12,793 Other (2) 6,520 59 3 6,576 6,600 18 16 6,602 Total non-U.S. debt securities 22,046 157 27 22,176 22,683 40 72 22,651 State and political subdivisions (3) 1,903 39 2 1,940 1,905 20 7 1,918 Collateralized mortgage obligations 130 — 1 129 200 — 3 197 Other U.S. debt securities 1,715 12 7 1,720 1,683 1 26 1,658 Total $ 48,827 $ 350 $ 175 $ 49,002 $ 45,359 $ 107 $ 318 $ 45,148 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 13,369 $ — $ 123 $ 13,246 $ 14,794 $ — $ 199 $ 14,595 Mortgage-backed securities 22,568 76 250 22,394 21,647 24 518 21,153 Total U.S. Treasury and federal agencies 35,937 76 373 35,640 36,441 24 717 35,748 Asset-backed securities: Student loans (1) 3,286 26 16 3,296 3,191 35 10 3,216 Credit cards — — — — 193 — — 193 Other 1 — — 1 1 — — 1 Total asset-backed securities 3,287 26 16 3,297 3,385 35 10 3,410 Non-U.S. debt securities: Mortgage-backed securities 575 82 8 649 638 77 9 706 Asset-backed securities 98 — — 98 223 — — 223 Government securities 399 1 — 400 358 1 — 359 Other 44 — — 44 46 — — 46 Total non-U.S. debt securities 1,116 83 8 1,191 1,265 78 9 1,334 Collateralized mortgage obligations 805 40 2 843 823 38 2 859 Total $ 41,145 $ 225 $ 399 $ 40,971 $ 41,914 $ 175 $ 738 $ 41,351 (1) Primarily comprised of securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans. (2) As of March 31, 2019 and December 31, 2018 , the fair value of other non-U.S. debt securities included $1.05 billion and $1.30 billion , respectively, of covered bonds and $1.33 billion of corporate bonds for both periods . (3) As of March 31, 2019 and December 31, 2018 , the fair value of state and political subdivisions includes securities in trusts of $1.06 billion and $1.05 billion , respectively. Additional information about these trusts is provided in Note 11 . Aggregate investment securities with carrying values of approximately $40.06 billion and $38.87 billion as of March 31, 2019 and December 31, 2018 , respectively, were designated as pledged for public and trust deposits, short-term borrowings and for other purposes as provided by law. The following tables present the aggregate fair values of AFS and HTM investment securities that have been in a continuous unrealized loss position for less than 12 months , and those that have been in a continuous unrealized loss position for 12 months or longer, as of the dates indicated: As of March 31, 2019 Less than 12 months 12 months or longer Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale: U.S. Treasury and federal agencies: Mortgage-backed securities $ 2,565 $ 4 $ 5,147 $ 105 $ 7,712 $ 109 Total U.S. Treasury and federal agencies 2,565 4 5,147 105 7,712 109 Asset-backed securities: Student loans 10 — 212 — 222 — Credit cards 89 1 497 25 586 26 Collateralized loan obligations 586 3 — — 586 3 Total asset-backed securities 685 4 709 25 1,394 29 Non-U.S. debt securities: Mortgage-backed securities 890 3 111 1 1,001 4 Asset-backed securities 992 6 — — 992 6 Government securities 3,345 14 — — 3,345 14 Other 721 2 189 1 910 3 Total non-U.S. debt securities 5,948 25 300 2 6,248 27 State and political subdivisions — — 254 2 254 2 Collateralized mortgage obligations — — 129 1 129 1 Other U.S. debt securities 116 2 500 5 616 7 Total $ 9,314 $ 35 $ 7,039 $ 140 $ 16,353 $ 175 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 2,210 $ 25 $ 11,036 $ 98 $ 13,246 $ 123 Mortgage-backed securities 357 1 14,205 249 14,562 250 Total U.S. Treasury and federal agencies 2,567 26 25,241 347 27,808 373 Asset-backed securities: Student loans 1,155 7 507 9 1,662 16 Total asset-backed securities 1,155 7 507 9 1,662 16 Non-U.S. debt securities: Mortgage-backed securities 99 2 116 6 215 8 Total non-U.S. debt securities 99 2 116 6 215 8 Collateralized mortgage obligations 101 — 48 2 149 2 Total $ 3,922 $ 35 $ 25,912 $ 364 $ 29,834 $ 399 As of December 31, 2018 Less than 12 months 12 months or longer Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale: U.S. Treasury and federal agencies: Mortgage-backed securities $ 5,058 $ 21 $ 5,089 $ 160 $ 10,147 $ 181 Total U.S. Treasury and federal agencies 5,058 21 5,089 160 10,147 181 Asset-backed securities: Student loans 106 — 218 1 324 1 Credit cards 90 — 493 26 583 26 Collateralized loan obligations 548 2 — — 548 2 Total asset-backed securities 744 2 711 27 1,455 29 Non-U.S. debt securities: Mortgage-backed securities 1,407 4 118 1 1,525 5 Asset-backed securities 1,479 6 — — 1,479 6 Government securities 5,478 45 — — 5,478 45 Other 2,167 12 226 4 2,393 16 Total non-U.S. debt securities 10,531 67 344 5 10,875 72 State and political subdivisions 365 3 244 4 609 7 Collateralized mortgage obligations 181 3 14 — 195 3 Other U.S. debt securities 861 14 484 12 1,345 26 Total $ 17,740 $ 110 $ 6,886 $ 208 $ 24,626 $ 318 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 2,192 $ 45 $ 12,403 $ 154 $ 14,595 $ 199 Mortgage-backed securities 6,502 103 10,648 415 17,150 518 Total U.S. Treasury and federal agencies 8,694 148 23,051 569 31,745 717 Asset-backed securities: Student loans 481 4 536 6 1,017 10 Total asset-backed securities 481 4 536 6 1,017 10 Non-U.S. debt securities: Mortgage-backed securities 184 2 119 7 303 9 Total non-U.S. debt securities 184 2 119 7 303 9 Collateralized mortgage obligations 102 1 51 1 153 2 Total $ 9,461 $ 155 $ 23,757 $ 583 $ 33,218 $ 738 The following table presents contractual maturities of debt investment securities by carrying amount as of March 31, 2019 . The maturities of certain ABS, MBS, and CMOs are based on expected principal payments. Actual maturities may differ from these expected maturities since certain borrowers have the right to prepay obligations with or without prepayment penalties. As of March 31, 2019 (In millions) Under 1 Year 1 to 5 Years 6 to 10 Years Over 10 Years Total Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 235 $ 806 $ — $ — $ 1,041 Mortgage-backed securities 44 991 2,490 16,518 20,043 Total U.S. Treasury and federal agencies 279 1,797 2,490 16,518 21,084 Asset-backed securities: Student loans 94 160 161 66 481 Credit cards 200 297 89 — 586 Collateralized loan obligations — 418 423 45 886 Total asset-backed securities 294 875 673 111 1,953 Non-U.S. debt securities: Mortgage-backed securities 266 552 171 528 1,517 Asset-backed securities 368 561 446 136 1,511 Government securities 3,178 6,802 2,592 — 12,572 Other 1,141 4,860 554 21 6,576 Total non-U.S. debt securities 4,953 12,775 3,763 685 22,176 State and political subdivisions 180 791 525 444 1,940 Collateralized mortgage obligations — — — 129 129 Other U.S. debt securities 152 1,292 276 — 1,720 Total $ 5,858 $ 17,530 $ 7,727 $ 17,887 $ 49,002 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 3,225 $ 10,096 $ 11 $ 37 $ 13,369 Mortgage-backed securities 31 236 1,538 20,763 22,568 Total U.S. Treasury and federal agencies 3,256 10,332 1,549 20,800 35,937 Asset-backed securities: Student loans 7 255 383 2,641 3,286 Credit cards — — — — — Other — — — 1 1 Total asset-backed securities 7 255 383 2,642 3,287 Non-U.S. debt securities: Mortgage-backed securities 134 40 7 394 575 Asset-backed securities 98 — — — 98 Government securities 286 113 — — 399 Other 44 — — — 44 Total non-U.S. debt securities 562 153 7 394 1,116 Collateralized mortgage obligations 1 313 14 477 805 Total $ 3,826 $ 11,053 $ 1,953 $ 24,313 $ 41,145 Interest income related to debt securities is recognized in our consolidated statement of income using the effective interest method, or on a basis approximating a level rate of return over the contractual or estimated life of the security. The level rate of return considers any non-refundable fees or costs, as well as purchase premiums or discounts, resulting in amortization or accretion, accordingly. The following table presents a roll-forward with respect to net impairment losses that have been recognized in income for the periods indicated: Three Months Ended March 31, (In millions) 2019 2018 Balance, beginning of period $ 78 $ 77 Additions (1) : Other-than-temporary-impairment recognized 1 1 Balance, end of period $ 79 $ 78 (1) Additions represent securities with a first time credit impairment realized or when a subsequent credit impairment has occurred. We conduct periodic reviews of individual securities to assess whether OTTI exists. For additional information about the review of securities for impairment, refer to pages 142 to 144 in Note 3 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2018 Form 10-K. We recorded approximately $1 million of OTTI in both the first quarter of 2019 and 2018 , on non-U.S. residential MBS, which resulted from adverse changes in the timing of expected future cash flows from the securities. After a review of the investment portfolio, taking into consideration current economic conditions, adverse situations that might affect our ability to fully collect principal and interest, the timing of future payments, the credit quality and performance of the collateral underlying MBS and ABS and other relevant factors, management considers the aggregate decline in fair value of the investment securities portfolio and the resulting gross pre-tax unrealized losses of $574 million related to 832 securities as of March 31, 2019 |
Loans and Leases
Loans and Leases | 3 Months Ended |
Mar. 31, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Leases | Loans and Leases We segregate our loans into two segments: commercial and financial loans and commercial real estate loans. We further classify commercial and financial loans as loans to investment funds, senior secured bank loans, loans to municipalities and other. These classifications reflect their risk characteristics, their initial measurement attributes and the methods we use to monitor and assess credit risk. For additional information on our loans and leases, including our internal risk-rating system used to assess our risk of credit loss for each loan or lease, refer to pages 145 to 147 in Note 4 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2018 Form 10-K. The following table presents our recorded investment in loans and leases, by segment, as of the dates indicated: (In millions) March 31, 2019 December 31, 2018 Domestic: Commercial and financial: Loans to investment funds $ 11,935 $ 15,050 Senior secured bank loans 3,516 3,490 Loans to municipalities 966 902 Other 34 37 Commercial real estate 976 874 Total domestic 17,427 20,353 Non-U.S.: Commercial and financial: Loans to investment funds 4,989 4,505 Senior secured bank loans 965 931 Total non-U.S. 5,954 5,436 Total loans and leases 23,381 25,789 Allowance for loan and lease losses (70 ) (67 ) Loans and leases, net of allowance $ 23,311 $ 25,722 The commercial and financial segment is composed primarily of floating-rate loans to mutual fund clients, purchased senior secured bank loans and loans to municipalities. Investment fund lending is composed of short-duration revolving credit lines providing liquidity to fund clients in support of their transaction flows associated with securities' settlement activities. Certain loans are pledged as collateral for access to the Federal Reserve's discount window. As of March 31, 2019 and December 31, 2018 , the loans pledged as collateral totaled $7.2 billion and $6.5 billion , respectively. The following tables present our recorded investment in each class of loans and leases by credit quality indicator as of the dates indicated: March 31, 2019 Commercial and Financial Commercial Real Estate Total Loans and Leases (In millions) Investment grade (1) $ 17,128 $ 976 $ 18,104 Speculative (2) 5,277 — 5,277 Total $ 22,405 $ 976 $ 23,381 December 31, 2018 Commercial and Financial Commercial Real Estate Total Loans and Leases (In millions) Investment grade (1) $ 19,599 $ 874 $ 20,473 Speculative (2) 5,308 — 5,308 Substandard (3) 8 — 8 Total $ 24,915 $ 874 $ 25,789 (1) Investment-grade loans and leases consist of counterparties with strong credit quality and low expected credit risk and probability of default. Ratings apply to counterparties with a strong capacity to support the timely repayment of any financial commitment. (2) Speculative loans and leases consist of counterparties that face ongoing uncertainties or exposure to business, financial, or economic downturns. However, these counterparties may have financial flexibility or access to financial alternatives, which allow for financial commitments to be met. (3) Substandard loans and leases consist of counterparties with well-defined weaknesses that jeopardize repayment with the possibility we will sustain some loss. As of March 31, 2019 and December 31, 2018 , we had no loans or leases on non-accrual status and no loans or leases contractually past due. In certain circumstances, we restructure troubled loans by granting concessions to borrowers experiencing financial difficulty. Once restructured, the loans are generally considered impaired until their maturity, regardless of whether the borrowers perform under the modified terms of the loans. There were no loans modified in troubled debt restructurings as of both March 31, 2019 and December 31, 2018 . We review all loans individually for indicators of impairment. Loans where indicators exist are evaluated individually for impairment at least quarterly. For those loans where no such indicators are identified, the loans are collectively evaluated for impairment. As of March 31, 2019 , there were no indicators of impairment and no impaired loans. As of December 31, 2018 , we had one impaired loan for $8 million in the commercial and financial segment that was individually evaluated for impairment and deemed to be impaired. This loan was subsequently paid in full in January 2019. Allowance for Loan and Lease Losses The following table presents activity in the ALLL for the periods indicated: Three Months Ended March 31, (In millions) 2019 2018 Allowance for loan and lease losses: Beginning balance $ 67 $ 54 Provision for loan and lease losses (1) 4 — Other (2) (1 ) — Ending balance $ 70 $ 54 (1) The provisions and charge-offs for loans and leases were primarily attributable to exposure to purchased senior secured loans to non-investment grade loans. (2) Consists primarily of FX translation. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table presents changes in the carrying amount of goodwill during the periods indicated: (In millions) Investment Servicing (1) Investment Management Total Goodwill: Ending balance December 31, 2017 $ 5,752 $ 270 $ 6,022 Acquisitions (1) 1,512 — 1,512 Foreign currency translation (84 ) (4 ) (88 ) Ending balance December 31, 2018 7,180 266 7,446 Acquisitions (2) 121 — 121 Foreign currency translation (18 ) — (18 ) Ending balance March 31, 2019 $ 7,283 $ 266 $ 7,549 (1) Investment Servicing includes our acquisition of CRD. (2) We have completed the purchase price accounting for the CRD acquisition as of March 31, 2019 . Upon completion of valuation procedures related to the acquired assets and assumed liabilities, primarily the identifiable intangible assets, we recorded measurement period adjustments in the first quarter of 2019 , resulting in an increase in the goodwill of $112 million . The following table presents changes in the net carrying amount of other intangible assets during the periods indicated: (In millions) Investment Servicing (1) Investment Management Total Other intangible assets: Ending balance December 31, 2017 $ 1,432 $ 181 $ 1,613 Acquisitions (1) 1,007 — 1,007 Amortization (196 ) (30 ) (226 ) Foreign currency translation (25 ) — (25 ) Ending balance December 31, 2018 2,218 151 2,369 Acquisitions (2) (93 ) — (93 ) Amortization (53 ) (7 ) (60 ) Foreign currency translation (8 ) — (8 ) Ending balance March 31, 2019 $ 2,064 $ 144 $ 2,208 (1) Investment Servicing includes our acquisition of CRD. (2) We have completed the purchase price accounting for the CRD acquisition as of March 31, 2019 . Upon completion of valuation procedures related to the acquired assets and assumed liabilities, primarily the identifiable intangible assets, we recorded measurement period adjustments in the first quarter of 2019 , resulting in a decrease in the fair value of intangible assets of $93 million , with a corresponding increase to goodwill. The following table presents the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets by type as of the dates indicated: March 31, 2019 December 31, 2018 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Other intangible assets: Client relationships $ 3,144 $ (1,639 ) $ 1,505 $ 3,262 $ (1,605 ) $ 1,657 Technology 403 (60 ) 343 389 (49 ) 340 Core deposits 673 (356 ) 317 676 (350 ) 326 Other 100 (57 ) 43 103 (57 ) 46 Total $ 4,320 $ (2,112 ) $ 2,208 $ 4,430 $ (2,061 ) $ 2,369 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2019 | |
Other Assets [Abstract] | |
Other Assets | Other Assets The following table presents the components of other assets as of the dates indicated: (In millions) March 31, 2019 December 31, 2018 Securities borrowed (1) $ 23,929 $ 19,575 Derivative instruments, net 4,178 5,189 Bank-owned life insurance 3,345 3,323 Investments in joint ventures and other unconsolidated entities (2) 2,668 2,882 Receivable for securities settlement 969 531 Collateral, net 903 1,354 Right-of-use assets (3) 899 — Accounts receivable 760 343 Prepaid expenses 520 493 Income taxes receivable 100 129 Deferred tax assets, net of valuation allowance (4) 100 113 Deposits with clearing organizations 58 58 Other 470 414 Total $ 38,899 $ 34,404 (1) Refer to Note 8 , for further information on the impact of collateral on our financial statement presentation of securities borrowing and securities lending transactions. (2) Includes certain equity securities held at fair value through profit and loss that were transferred from AFS as part of our adoption of ASU 2016-01. (3) We adopted ASU 2016-02, Leases (Topic 842) and relevant amendments, effective January 1, 2019. Refer to Note 1 for further information on this new accounting standard. (4) |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative financial instruments to support our clients' needs and to manage our interest rate and currency risks. These financial instruments consist of FX contracts such as forwards, futures and options contracts; interest rate contracts such as interest rate swaps (cross currency and single currency) and futures; and other derivative contracts. Derivative instruments used for risk management purposes that are highly effective in offsetting the risk being hedged are generally designated as hedging instruments in hedge accounting relationships while others are economic hedges and not designated in hedge accounting relationships. For additional information on our derivative financial instruments, including derivatives not designated as hedging instruments, refer to page 152 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2018 Form 10-K. Derivatives Designated as Hedging Instruments For additional information on our derivatives designated as hedging instruments, including our risk management objectives and hedging documentation methodologies, refer to pages 152 to 153 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2018 Form 10-K. Fair Value Hedges Derivatives designated as fair value hedges are utilized to mitigate the risk of changes in the fair values of recognized assets and liabilities, including long-term debt, AFS securities, and foreign currency investment securities. We use interest rate or FX contracts in this manner to manage our exposure to changes in the fair value of hedged items caused by changes in interest rates or FX rates. Changes in the fair value of the derivative and changes in fair value of the hedged item due to changes in the hedged risk are recognized in earnings in the same line item. If a hedge is terminated, all remaining adjustments to the carrying amount of the hedged item shall be amortized over a period that is consistent with the amortization of other discounts or premiums associated with the hedged item . Cash Flow Hedges Derivatives designated as cash flow hedges are utilized to offset the variability of cash flows of recognized assets or liabilities or forecasted transactions. We have entered into FX contracts to hedge the change in cash flows attributable to FX movements in foreign currency denominated investment securities. Additionally, we have entered into interest rate swap agreements to hedge the forecasted cash flows associated with London Interbank Offered Rate (LIBOR) indexed floating-rate loans. The interest rate swaps synthetically convert the loan interest receipts from a variable-rate to a fixed-rate, thereby mitigating the risk attributable to changes in the LIBOR benchmark rate. Changes in fair value of the derivatives designated as cash flow hedges are initially recorded in AOCI and then reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings and are presented in the same income statement line item as the earnings effect of the hedged item. If the hedge relationship is terminated, the change in fair value on the derivative recorded in AOCI is reclassified into earnings consistent with the timing of the hedged item. For hedge relationships that are discontinued because a forecasted transaction is not expected to occur according to the original hedge terms, any related derivative values recorded in AOCI are immediately recognized in earnings. As of March 31, 2019 , the maximum maturity date of the underlying loans is approximately 3 years . Net Investment Hedges Derivatives categorized as net investment hedges are entered into to protect the net investment in our foreign operations against adverse changes in exchange rates. We use FX forward contracts to convert the foreign currency risk to U.S. dollars to mitigate our exposure to fluctuations in FX rates. The changes in fair value of the FX forward contracts are recorded, net of taxes, in the foreign currency translation component of OCI. The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments including those entered into for trading and asset-and-liability management activities as of the dates indicated: (In millions) March 31, 2019 December 31, 2018 Derivatives not designated as hedging instruments: Interest rate contracts: Futures $ 4,387 $ 2,348 Foreign exchange contracts: Forward, swap and spot 2,284,676 2,238,819 Options purchased 797 578 Options written 505 576 Futures 414 49 Other: Stable value contracts (1) 26,991 26,634 Deferred value awards (2) 559 434 Derivatives designated as hedging instruments: Interest rate contracts: Swap agreements 10,596 10,596 Foreign exchange contracts: Forward and swap 3,050 3,412 (1) The notional value of the stable value contracts generally represents our maximum exposure. However, exposure to various stable value contracts is contractually limited to substantially lower amounts than the notional values, which represent the total assets of the stable value funds. (2) For additional information on our derivatives not designated as hedging instruments, including deferred value awards, refer to page 152 in Note 10 to the consolidated financial statements under Item 8, Financial Statements and Supplementary Data, in our 2018 Form 10-K. Notional amounts are provided here as an indication of the volume of our derivative activity and serve as a reference to calculate the fair values of the derivative. The following tables present the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 8 . March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 (In millions) Derivative Assets (1) Derivative Liabilities (2) Derivatives not designated as hedging instruments: Foreign exchange contracts $ 11,123 $ 16,369 $ 11,240 $ 16,434 Other derivative contracts — — 228 214 Total $ 11,123 $ 16,369 $ 11,468 $ 16,648 Derivatives designated as hedging instruments: Foreign exchange contracts $ 21 $ 17 $ 60 $ 88 Interest rate contracts — 13 69 71 Total $ 21 $ 30 $ 129 $ 159 (1) Derivative assets are included within other assets in our consolidated statement of condition. (2) Derivative liabilities are included within other liabilities in our consolidated statement of condition. The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated: Three Months Ended March 31, 2019 2018 (In millions) Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Derivatives not designated as hedging instruments: Foreign exchange contracts Foreign exchange trading services revenue $ 160 $ 184 Foreign exchange contracts Interest expense (1) (39 ) (15 ) Interest rate contracts Foreign exchange trading services revenue (1 ) (2 ) Other derivative contracts Foreign exchange trading services revenue — 1 Other derivative contracts Compensation and employee benefits (74 ) (65 ) Total $ 46 $ 103 (1) In the first quarter of 2018, approximately $15 million of swap costs were reclassified from processing fees and other revenue within fee revenue to net interest income to conform to current presentation. The following table shows the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships: March 31, 2019 Hedged Items Currently Designated Hedged Items No Longer Designated (1) (In millions) Carrying Amount of Assets and Liabilities (2) Cumulative Hedge Accounting Basis Adjustments Carrying Amount of Assets and Liabilities Cumulative Hedge Accounting Basis Adjustments Long-term debt $ 8,271 $ (23 ) $ 1,198 $ (17 ) Available-for-sale securities 1,553 76 50 1 Total $ 9,824 $ 53 $ 1,248 $ (16 ) December 31, 2018 Hedged Items Currently Designated Hedged Items No Longer Designated (1) (In millions) Carrying Amount of Assets and Liabilities (2) Cumulative Hedge Accounting Basis Adjustments Carrying Amount of Assets and Liabilities Cumulative Hedge Accounting Basis Adjustments Long-term debt $ 8,270 $ (137 ) $ 1,197 $ (20 ) Available-for-sale securities 1,496 72 50 1 Total $ 9,766 $ (65 ) $ 1,247 $ (19 ) (1) Represents hedged items no longer designated in qualifying fair value hedging relationships for which an associated basis adjustment exists at the balance sheet date. (2) Does not include the carrying amount of hedged items when only foreign currency risk is the designated hedged risk. The carrying amount excluded for investment securities was zero and $458 million for March 31, 2019 and December 31, 2018 , respectively. As of both March 31, 2019 and December 31, 2018 , the total notional amount of the interest rate swaps of fair value hedges was $9.30 billion . The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated: Three Months Ended March 31, Three Months Ended March 31, 2019 2018 2019 2018 (In millions) Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain Derivatives designated as fair value hedges: Foreign exchange contracts Processing fees and other revenue $ — $ (13 ) Investment securities Processing fees and other revenue $ — $ 13 Foreign exchange contracts Processing fees and other revenue — 248 Foreign exchange deposit Processing fees and other revenue — — (248 ) Interest rate contracts Net interest income 106 21 Available-for-sale securities (1) Net interest income (102 ) — (21 ) Interest rate contracts Net interest income (3 ) (167 ) Long-term debt Net interest income 4 — 156 Total $ 103 $ 89 $ (98 ) $ (100 ) (1) In the first quarter of 2019 , $2 million of net unrealized losses on AFS investment securities designated in fair value hedges was recognized in OCI compared to $18 million of net unrealized gains in the same period in 2018 . Three Months Ended March 31, Three Months Ended March 31, 2019 2018 2019 2018 (In millions) Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Derivatives designated as cash flow hedges: Interest rate contracts $ 10 $ (20 ) Net interest income $ (2 ) $ 1 Foreign exchange contracts 27 (88 ) Net interest income 7 7 Total derivatives designated as cash flow hedges $ 37 $ (108 ) $ 5 $ 8 Derivatives designated as net investment hedges: Foreign exchange contracts $ 20 $ (36 ) Gains (losses) related to investment securities, net $ — $ — Total derivatives designated as net investment hedges $ 20 $ (36 ) $ — $ — Total $ 57 $ (144 ) $ 5 $ 8 Derivatives Netting and Credit Contingencies Netting Derivatives receivable and payable as well as cash collateral from the same counterparty are netted in the consolidated statement of condition for those counterparties with whom we have legally binding master netting agreements in place. In addition to cash collateral received and transferred presented on a net basis, we also receive and transfer collateral in the form of securities, which mitigate credit risk but are not eligible for netting. Additional information on netting is provided in Note 8 . Credit Contingencies Certain of our derivatives are subject to master netting agreements with our derivative counterparties containing credit risk-related contingent features, which requires us to maintain an investment grade credit rating with the various credit rating agencies. If our rating falls below investment grade, we would be in violation of the provisions, and counterparties to the derivatives could request immediate payment or demand full overnight collateralization on derivatives instruments in net liability positions. The aggregate fair value of all derivatives with credit contingent features and in a liability position as of March 31, 2019 totaled approximately $1.7 billion , against which we provided $1.0 billion of collateral in the normal course of business. If our credit related contingent features underlying these agreements were triggered as of March 31, 2019 , the maximum additional collateral we would be required to post to our counterparties is approximately $0.7 billion |
Offsetting Arrangements
Offsetting Arrangements | 3 Months Ended |
Mar. 31, 2019 | |
Offsetting [Abstract] | |
Offsetting Arrangements | Offsetting Arrangements For additional information on our offsetting arrangements, refer to page 157 in Note 11 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2018 Form 10-K. As of March 31, 2019 and December 31, 2018 , the value of securities received as collateral from third parties where we are permitted to transfer or re-pledge the securities totaled $11.74 billion and $11.69 billion , respectively, and the fair value of the portion that had been transferred or re-pledged as of the same dates was $7.99 billion and $5.31 million , respectively. The following tables present information about the offsetting of assets related to derivative contracts and secured financing transactions, as of the dates indicated: Assets: March 31, 2019 Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 11,144 $ (6,327 ) $ 4,817 $ — $ 4,817 Cash collateral and securities netting NA (639 ) (639 ) (468 ) (1,107 ) Total derivatives 11,144 (6,966 ) 4,178 (468 ) 3,710 Other financial instruments: Resale agreements and securities borrowing (6) 103,293 (77,842 ) 25,451 (24,487 ) 964 Total derivatives and other financial instruments $ 114,437 $ (84,808 ) $ 29,629 $ (24,955 ) $ 4,674 Assets: December 31, 2018 Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 16,386 $ (10,223 ) $ 6,163 $ — $ 6,163 Interest rate contracts (7) 13 — 13 — 13 Cash collateral and securities netting NA (987 ) (987 ) (220 ) (1,207 ) Total derivatives 16,399 (11,210 ) 5,189 (220 ) 4,969 Other financial instruments: Resale agreements and securities borrowing (6) 116,143 (91,889 ) 24,254 (22,872 ) 1,382 Total derivatives and other financial instruments $ 132,542 $ (103,099 ) $ 29,443 $ (23,092 ) $ 6,351 (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Includes securities in connection with our securities borrowing transactions. (5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. (6) Included in the $25.45 billion as of March 31, 2019 were $1.52 billion of resale agreements and $23.93 billion of collateral provided related to securities borrowing. Included in the $24.25 billion as of December 31, 2018 were $4.68 billion of resale agreements and $19.58 billion of collateral provided related to securities borrowing. Resale agreements and collateral provided related to securities borrowing were recorded in securities purchased under resale agreements and other assets, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions. (7) Variation margin payments presented as settlements rather than collateral. NA Not applicable The following tables present information about the offsetting of liabilities related to derivative contracts and secured financing transactions, as of the dates indicated: Liabilities: March 31, 2019 Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 11,300 $ (6,327 ) $ 4,973 $ — $ 4,973 Interest rate contracts (6) 69 — 69 — 69 Other derivative contracts 228 — 228 — 228 Cash collateral and securities netting NA (1,192 ) (1,192 ) (633 ) (1,825 ) Total derivatives 11,597 (7,519 ) 4,078 (633 ) 3,445 Other financial instruments: Repurchase agreements and securities lending (7) 93,272 (77,842 ) 15,430 (14,103 ) 1,327 Total derivatives and other financial instruments $ 104,869 $ (85,361 ) $ 19,508 $ (14,736 ) $ 4,772 Liabilities: December 31, 2018 Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 16,522 $ (10,223 ) $ 6,299 $ — $ 6,299 Interest rate contracts (6) 71 — 71 — 71 Other derivative contracts 214 — 214 — 214 Cash collateral and securities netting NA (1,341 ) (1,341 ) (215 ) (1,556 ) Total derivatives 16,807 (11,564 ) 5,243 (215 ) 5,028 Other financial instruments: Repurchase agreements and securities lending (7) 104,494 (91,889 ) 12,605 (11,543 ) 1,062 Total derivatives and other financial instruments $ 121,301 $ (103,453 ) $ 17,848 $ (11,758 ) $ 6,090 (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Includes securities provided in connection with our securities lending transactions. (5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. (6) Variation margin payments presented as settlements rather than collateral. (7) Included in the $15.43 billion as of March 31, 2019 were $1.42 billion of repurchase agreements and $14.01 billion of collateral received related to securities lending transactions. Included in the $12.60 billion as of December 31, 2018 were $1.08 billion of repurchase agreements and $11.52 billion of collateral received related to securities lending transactions. Repurchase agreements and collateral received related to securities lending were recorded in securities sold under repurchase agreements and accrued expenses and other liabilit ies, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions . NA Not applicable The securities transferred under resale and repurchase agreements typically are U.S. Treasury, agency and agency MBS. In our principal securities borrowing and lending arrangements, the securities transferred are predominantly equity securities and some corporate debt securities. The fair value of the securities transferred may increase in value to an amount greater than the amount received under our repurchase and securities lending arrangements, which exposes us to counterparty risk. We require the review of the price of the underlying securities in relation to the carrying value of the repurchase agreements and securities lending arrangements on a daily basis and when appropriate, adjust the cash or security to be obtained or returned to counterparties that is reflective of the required collateral levels. The following table summarizes our repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated: As of March 31, 2019 As of December 31, 2018 (In millions) Overnight and Continuous Up to 30 Days Total Overnight and Continuous Up to 30 Days Total Repurchase agreements: U.S. Treasury and agency securities $ 74,346 $ — $ 74,346 $ 88,904 $ — $ 88,904 Total 74,346 — 74,346 88,904 — 88,904 Securities lending transactions: US Treasury and agency securities 136 — 136 249 — 249 Corporate debt securities 433 — 433 278 — 278 Equity securities 9,733 124 9,857 6,426 137 6,563 Other (1) 8,500 — 8,500 8,500 — 8,500 Total 18,802 124 18,926 15,453 137 15,590 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 93,148 $ 124 $ 93,272 $ 104,357 $ 137 $ 104,494 (1) |
Commitments and Guarantees
Commitments and Guarantees | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Guarantees | Commitments and Guarantees For additional information on our commitments and guarantees, refer to page 160 in Note 12 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2018 Form 10-K. The following table presents the aggregate gross contractual amounts of our off-balance sheet commitments and off-balance sheet guarantees as of the dates indicated: (In millions) March 31, 2019 December 31, 2018 Commitments: Unfunded credit facilities (1) $ 29,951 $ 28,951 Guarantees (2) : Indemnified securities financing $ 387,314 $ 342,337 Standby letters of credit 2,973 2,985 (1) As of March 31, 2019, approximately 75% of our unfunded commitments to extend credit expire within one year . (2) The potential losses associated with these guarantees equal the gross contractual amounts and do not consider the value of any collateral or reflect any participations to independent third parties. Indemnified Securities Financing For additional information on our Indemnified Securities Financing, refer to page 160 in Note 12 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2018 Form 10-K. The following table summarizes the aggregate fair values of indemnified securities financing and related collateral, as well as collateral invested in indemnified repurchase agreements, as of the dates indicated: (In millions) March 31, 2019 December 31, 2018 Fair value of indemnified securities financing $ 387,314 $ 342,337 Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing 405,299 357,893 Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements 47,560 42,610 Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements 50,351 45,064 In certain cases, we participate in securities finance transactions as a principal. As a principal, we borrow securities from the lending client and then lend such securities to the subsequent borrower, either our client or a broker/dealer. Our right to receive and obligation to return collateral in connection with our securities lending transactions are recorded in other assets and other liabilities, respectively, in our consolidated statement of condition. As of March 31, 2019 and December 31, 2018 , we had approximately $23.93 billion and $19.58 billion , respectively, of collateral provided and approximately $14.01 billion and $11.52 billion |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies In the ordinary course of business, we and our subsidiaries are involved in disputes, litigation, and governmental or regulatory inquiries and investigations, both pending and threatened. These matters, if resolved adversely against us or settled, may result in monetary awards or payments, fines and penalties or require changes in our business practices. The resolution or settlement of these matters is inherently difficult to predict. Based on our assessment of these pending matters, we do not believe that the amount of any judgment, settlement or other action arising from any pending matter is likely to have a material adverse effect on our consolidated financial condition. However, an adverse outcome or development in certain of the matters described below could have a material adverse effect on our consolidated results of operations for the period in which such matter is resolved, or an accrual is determined to be required, on our consolidated financial condition, or on our reputation. We evaluate our needs for accruals of loss contingencies related to legal and regulatory proceedings on a case-by-case basis. When we have a liability that we deem probable, and we deem the amount of such liability can be reasonably estimated as of the date of our consolidated financial statements, we accrue our estimate of the amount of loss. We also consider a loss probable and establish an accrual when we make, or intend to make, an offer of settlement. Once established, an accrual is subject to subsequent adjustment as a result of additional information. The resolution of legal and regulatory proceedings and the amount of reasonably estimable loss (or range thereof) are inherently difficult to predict, especially in the early stages of proceedings. Even if a loss is probable, an amount (or range) of loss might not be reasonably estimated until the later stages of the proceeding due to many factors such as the presence of complex or novel legal theories, the discretion of governmental authorities in seeking sanctions or negotiating resolutions in civil and criminal matters, the pace and timing of discovery and other assessments of facts and the procedural posture of the matter (collectively, "factors influencing reasonable estimates"). As of March 31, 2019 , our aggregate accruals for loss contingencies for legal and regulatory matters totaled approximately $53 million . To the extent that we have established accruals in our consolidated statement of condition for probable loss contingencies, such accruals may not be sufficient to cover our ultimate financial exposure associated with any settlements or judgments. Any such ultimate financial exposure, or proceedings to which we may become subject in the future, could have a material adverse effect on our businesses, on our future consolidated financial statements or on our reputation. As of March 31, 2019 , for those matters for which we have accrued probable loss contingencies (including the Invoicing Matter described below) and for other matters for which loss is reasonably possible (but not probable) in future periods, and for which we are able to estimate a range of reasonably possible loss, our estimate of the aggregate reasonably possible loss (in excess of any accrued amounts) ranges up to approximately $300 million . Our estimate with respect to the aggregate reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions and known and unknown uncertainties, which may change quickly and significantly from time to time, particularly if and as we engage with applicable governmental agencies or plaintiffs in connection with a proceeding. Also, the matters underlying the reasonably possible loss will change from time to time. As a result, actual results may vary significantly from the current estimate. In certain pending matters, it is not currently feasible to reasonably estimate the amount or a range of reasonably possible loss, and such losses, which may be significant, are not included in the estimate of reasonably possible loss discussed above. This is due to, among other factors, the factors influencing reasonable estimates described above. An adverse outcome in one or more of the matters for which we have not estimated the amount or a range of reasonably possible loss, individually or in the aggregate, could have a material adverse effect on our businesses, on our future consolidated financial statements or on our reputation. Given that our actual losses from any legal or regulatory proceeding for which we have provided an estimate of the reasonably possible loss could significantly exceed such estimate, and given that we cannot estimate reasonably possible loss for all legal and regulatory proceedings as to which we may be subject now or in the future, no conclusion as to our ultimate exposure from current pending or potential legal or regulatory proceedings should be drawn from the current estimate of reasonably possible loss. The following discussion provides information with respect to significant legal, governmental and regulatory matters. Invoicing Matter In 2015, we determined that we had incorrectly invoiced clients for certain expenses. We have reimbursed most of our affected customers for those expenses, and we have implemented enhancements to our billing processes. In connection with our enhancements to our billing processes, we continue to review historical billing practices and may from time to time identify additional remediation. In 2017, we identified an additional area of incorrect expense billing associated with mailing services in our retirement services business. The accrual for loss contingencies as of March 31, 2019 included an estimate of the amount we anticipate reimbursing clients due to that error. We currently expect the cumulative total of our payments to customers for these invoicing errors, including the error in the retirement services business, to be at least $380 million , all of which has been paid or is accrued. However, we may identify additional remediation costs. In March 2017, a purported class action was commenced against us alleging that our invoicing practices violated duties owed to retirement plan customers under the Employee Retirement Income Security Act. In addition, we have received a purported class action demand letter alleging that our invoicing practices were unfair and deceptive under Massachusetts law. A class of customers, or particular customers, may assert that we have not paid to them all amounts incorrectly invoiced, and may seek double or treble damages under Massachusetts law. We are also cooperating with investigations by governmental and regulatory authorities on these matters, including the civil and criminal divisions of the DOJ, the SEC, the Department of Labor and the Massachusetts Attorney General, which could result in significant fines or other sanctions, civil and criminal, against us. If these governmental or regulatory authorities were to conclude that all or a portion of the billing errors merited civil or criminal sanctions, any fine or other penalty could be a significant percentage, or a multiple of, the portion of the overcharging serving as the basis of such a claim or of the full amount overcharged. The governmental and regulatory authorities have significant discretion in civil and criminal matters as to the fines and other penalties they may seek to impose. The severity of such fines or other penalties could take into account factors such as the amount and duration of our incorrect invoicing, the government’s or regulator's assessment of the conduct of our employees, as well as prior conduct such as that which resulted in our January 2017 deferred prosecution agreement in connection with transition management services and our settlement of civil claims regarding our indirect FX business. The staff of the SEC has informed us that it intends to ask the SEC for permission to bring an action against us asserting that we overcharged clients that are registered investment companies for custody expenses in violation of §§ 31(a), 34(b) and 37 of the Investment Company Act of 1940, and Rules 31a-1(a) and 31a-1(b) thereunder. The Massachusetts Attorney General's office has also asserted a claim under state law. We have reached an agreement in principle with respect to the approximate financial terms of a settlement with each of the SEC and the Massachusetts Attorney General to resolve such claims and, at March 31, 2019, our aggregate accruals for loss contingencies for legal matters include the amount of penalties reflected in such proposed settlements. There can be no assurance that any settlement, whether with the SEC or other governmental authorities, will be reached or, if so, the amount of the settlement or its impact on other claims relating to these matters. It is likely that discussions will commence in 2019 with the DOJ regarding a potential resolution of their investigation regarding this matter, which will then enable us to better assess the potential penalties and/or other sanctions they will be seeking. The aggregate amount of penalties that may potentially be imposed upon us in connection with the resolution of all outstanding investigations into our historical billing practices could be significant multiples of the potential penalties as to which we have reached an agreement in principle with the staff of the SEC. The outcome of any of these proceedings and, in particular, any criminal sanction could materially adversely affect our results of operations and could have significant collateral consequences for our business and reputation. Federal Reserve/Massachusetts Division of Banks Written Agreement On June 1, 2015, we entered into a written agreement with the Federal Reserve and the Massachusetts Division of Banks relating to deficiencies identified in our compliance programs with the requirements of the Bank Secrecy Act, Anti-Money Laundering regulations and U.S. economic sanctions regulations promulgated by the Office of Foreign Assets Control. As part of this enforcement action, we have been required to, among other things, implement improvements to our compliance programs. If we fail to comply with the terms of the written agreement, we may become subject to fines and other regulatory sanctions, which may have a material adverse effect on us. Shareholder Litigation A shareholder of ours has filed a purported class action complaint against us alleging that our financial statements in our annual reports for the 2011-2014 period were misleading due to the inclusion of revenues associated with the invoicing matter referenced above and the facts surrounding our 2017 settlements with the U.S. government relating to our transition management business. The Court approved a class settlement in this matter for $4.9 million In determining our provision for income taxes, we make certain judgments and interpretations with respect to tax laws in jurisdictions in which we have business operations. Because of the complex nature of these laws, in the normal course of our business, we are subject to challenges from U.S. and non-U.S. income tax authorities regarding the amount of income taxes due. These challenges may result in adjustments to the timing or amount of taxable income or deductions or the allocation of taxable income among tax jurisdictions. We recognize a tax benefit when it is more likely than not that our position will result in a tax deduction or credit. Unrecognized tax benefits of approximately $103 million as of March 31, 2019 decreased from $108 million as of December 31, 2018 . We are presently under audit by a number of tax authorities, and the Internal Revenue Service is currently reviewing our U.S. income tax returns for the tax years 2014 and 2015. The earliest tax year open to examination in jurisdictions where we have material operations is 2012. Management believes that we have sufficiently accrued liabilities as of March 31, 2019 |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities For additional information on our VIEs, refer to pages 163 to 164 in Note 14 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, "Variable Interest Entities", in our 2018 Form 10-K. Tax Exempt Investment Program In the normal course of our business, we structure and sell certificated interests in pools of tax exempt investment grade assets, principally to our mutual fund clients. We structure these pools as partnership trusts, and the assets and liabilities of the trusts are recorded in our consolidated statement of condition as AFS investment securities and other short term borrowings. As of March 31, 2019 and December 31, 2018 , we carried AFS investment securities, composed of securities related to state and political subdivisions, with a fair value of $1.06 billion and $1.05 billion , respectively, and other short term borrowings of $0.93 billion in both periods, in our consolidated statement of condition in connection with these trusts. The interest income and interest expense generated by the investments and certificated interests, respectively, are recorded as components of NII when earned or incurred. The trusts had a weighted average life of approximately 3.4 years and 3.6 years as of March 31, 2019 and December 31, 2018 , respectively. Interests in Investment Funds As of March 31, 2019 and December 31, 2018 , we did not have any consolidated investment funds. We managed certain funds, considered VIEs, in which we held a variable interest but for which we were not deemed to be the primary beneficiary. Our potential maximum loss exposure related to these unconsolidated funds totaled $37 million as of March 31, 2019 and $70 million as of December 31, 2018 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Preferred Stock The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of March 31, 2019 : Issuance Date Depositary Shares Issued Ownership Interest Per Depositary Share Liquidation Preference Per Share Liquidation Preference Per Depositary Share Net Proceeds of Offering (In millions) Redemption Date (1) Preferred Stock (2) : Series C August 2012 20,000,000 1/4,000th $ 100,000 $ 25 $ 488 September 15, 2017 Series D February 2014 30,000,000 1/4,000th 100,000 25 742 March 15, 2024 Series E November 2014 30,000,000 1/4,000th 100,000 25 728 December 15, 2019 Series F May 2015 750,000 1/100th 100,000 1,000 742 September 15, 2020 Series G April 2016 20,000,000 1/4,000th 100,000 25 493 March 15, 2026 Series H September 2018 500,000 1/100th 100,000 1,000 494 December 15, 2023 (1) On the redemption date, or any dividend declaration date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. (2) The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. The following table presents the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated: Three Months Ended March 31, 2019 2018 (Dollars in millions, except per share amounts) Dividends Declared per Share Dividends Declared per Depositary Share Total (1) Dividends Declared per Share Dividends Declared per Depositary Share Total Preferred Stock: Series C $ 1,313 $ 0.33 $ 6 $ 1,313 $ 0.33 $ 6 Series D 1,475 0.37 11 1,475 0.37 11 Series E 1,500 0.38 11 1,500 0.38 11 Series F 2,625 26.25 20 2,625 26.25 20 Series G 1,338 0.33 7 1,338 0.33 7 Series H — — — — — — Total $ 55 $ 55 (1) Dividends were paid in March 2019 Common Stock We repurchased $300 million of our common stock in the first quarter of 2019 and may repurchase up to $300 million of our common stock in the second quarter of 2019 under the 2018 Program. The table below presents the activity under our common stock purchase program during the period indicated: Three Months Ended March 31, 2019 Shares Acquired Average Cost per Share Total Acquired 2018 Program 4.2 $ 70.93 $ 300 The table below presents the dividends declared on common stock for the periods indicated: Three Months Ended March 31, 2019 2018 Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) Common Stock $ 0.47 $ 177 $ 0.42 $ 154 Accumulated Other Comprehensive Income (Loss) The following table presents the after-tax components of AOCI as of the dates indicated: (In millions) March 31, 2019 December 31, 2018 Net unrealized (losses) on cash flow hedges $ (71 ) $ (89 ) Net unrealized gains (losses) on available-for-sale securities portfolio 114 (193 ) Net unrealized gains related to reclassified available-for-sale securities 58 58 Net unrealized gains (losses) on available-for-sale securities 172 (135 ) Net unrealized (losses) on available-for-sale securities designated in fair value hedges (56 ) (40 ) Net unrealized gains on hedges of net investments in non-U.S. subsidiaries 36 16 Other-than-temporary impairment on held-to-maturity securities related to factors other than credit (3 ) (2 ) Net unrealized (losses) on retirement plans (179 ) (143 ) Foreign currency translation (1,079 ) (963 ) Total $ (1,180 ) $ (1,356 ) The following table presents changes in AOCI by component, net of related taxes, for the periods indicated: Three Months Ended March 31, 2019 (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries Other-Than-Temporary Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2018 $ (89 ) $ (175 ) $ 16 $ (2 ) $ (143 ) $ (963 ) $ (1,356 ) Other comprehensive income (loss) before reclassifications 24 270 23 1 — (49 ) 269 Reclassification of certain tax effects (1) (6 ) 21 (3 ) (1 ) (28 ) (67 ) (84 ) Amounts reclassified into (out of) earnings — — — (1 ) (8 ) — (9 ) Other comprehensive income (loss) 18 291 20 (1 ) (36 ) (116 ) 176 Balance as of March 31, 2019 $ (71 ) $ 116 $ 36 $ (3 ) $ (179 ) $ (1,079 ) $ (1,180 ) Three Months Ended March 31, 2018 (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries Other-Than-Temporary Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2017 $ (56 ) $ 103 $ (65 ) $ (6 ) $ (170 ) $ (815 ) $ (1,009 ) Other comprehensive income (loss) before reclassifications (97 ) (130 ) (36 ) 1 — 187 (75 ) Amounts reclassified into (out of) earnings — (1 ) — (1 ) 12 — 10 Other comprehensive income (loss) (97 ) (131 ) (36 ) — 12 187 (65 ) Balance as of March 31, 2018 $ (153 ) $ (28 ) $ (101 ) $ (6 ) $ (158 ) $ (628 ) $ (1,074 ) (1) Represents the reclassification from accumulated other comprehensive income into retained earnings as a result of our adoption of ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in the first quarter of 2019. The following table presents after-tax reclassifications into earnings for the periods indicated: Three Months Ended March 31, 2019 2018 (In millions) Amounts Reclassified into Affected Line Item in Consolidated Statement of Income Available-for-sale securities: Net realized gains (losses) from sales of available-for-sale securities, net of related taxes of zero and ($1), respectively $ — $ (1 ) Net gains (losses) from sales of available-for-sale securities Held-to-maturity securities: Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of zero and zero, respectively (1 ) (1 ) Losses reclassified (from) to other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of ($4) and $3, respectively (8 ) 12 Compensation and employee benefits expenses Total reclassifications out of Accumulated other comprehensive loss $ (9 ) $ 10 |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | Regulatory Capital For additional information on our regulatory capital, including the regulatory capital requirements administered by federal banking agencies, and to which we are subject, refer to page 167 in Note 16 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2018 Form 10-K. As of March 31, 2019 , we and State Street Bank exceeded all regulatory capital adequacy requirements to which we were subject. As of March 31, 2019 , State Street Bank was categorized as “well capitalized” under the applicable regulatory capital adequacy framework, and exceeded all “well capitalized” ratio guidelines to which it was subject. Management believes that no conditions or events have occurred since March 31, 2019 that have changed the capital categorization of State Street Bank. The following table presents the regulatory capital structure, total RWA, related regulatory capital ratios and the minimum required regulatory capital ratios for us and State Street Bank as of the dates indicated. As a result of changes in the methodologies used to calculate our regulatory capital ratios from period to period as the provisions of the Basel III final rule were phased in, the ratios presented in the table for each period-end are not directly comparable. Refer to the footnotes following the table. State Street State Street Bank (Dollars in millions) Basel III Advanced Approaches March 31, 2019 Basel III Standardized Approach March 31, 2019 Basel III Advanced Approaches December 31, 2018 (1) Basel III Standardized Approach December 31, 2018 (1) Basel III Advanced Approaches March 31, 2019 Basel III Standardized Approach March 31, 2019 Basel III Advanced Approaches December 31, 2018 (1) Basel III Standardized Approach December 31, 2018 (1) Common shareholders' equity: Common stock and related surplus $ 10,586 $ 10,586 $ 10,565 $ 10,565 $ 12,894 $ 12,894 $ 12,894 $ 12,894 Retained earnings 20,911 20,911 20,606 20,606 14,273 14,273 14,261 14,261 Accumulated other comprehensive income (loss) (1,168 ) (1,168 ) (1,332 ) (1,332 ) (954 ) (954 ) (1,112 ) (1,112 ) Treasury stock, at cost (8,969 ) (8,969 ) (8,715 ) (8,715 ) — — — — Total 21,360 21,360 21,124 21,124 26,213 26,213 26,043 26,043 Regulatory capital adjustments: Goodwill and other intangible assets, net of associated deferred tax liabilities (9,294 ) (9,294 ) (9,350 ) (9,350 ) (9,016 ) (9,016 ) (9,073 ) (9,073 ) Other adjustments (2) (167 ) (167 ) (194 ) (194 ) (1 ) (1 ) (29 ) (29 ) Common equity tier 1 capital 11,899 11,899 11,580 11,580 17,196 17,196 16,941 16,941 Preferred stock 3,690 3,690 3,690 3,690 — — — — Tier 1 capital 15,589 15,589 15,270 15,270 17,196 17,196 16,941 16,941 Qualifying subordinated long-term debt 787 787 778 778 785 785 776 776 Allowance for loan and lease losses and other 10 84 14 83 6 83 11 83 Total capital $ 16,386 $ 16,460 $ 16,062 $ 16,131 $ 17,987 $ 18,064 $ 17,728 $ 17,800 Risk-weighted assets: Credit risk (3) $ 49,451 $ 102,284 $ 47,738 $ 97,303 $ 47,106 $ 99,673 $ 45,565 $ 94,776 Operational risk (4) 47,213 NA 46,060 NA 44,416 NA 44,494 NA Market risk 1,359 1,359 1,517 1,517 1,359 1,359 1,517 1,517 Total risk-weighted assets $ 98,023 $ 103,643 $ 95,315 $ 98,820 $ 92,881 $ 101,032 $ 91,576 $ 96,293 Adjusted quarterly average assets $ 210,099 $ 210,099 $ 211,924 $ 211,924 $ 207,417 $ 207,417 $ 209,413 $ 209,413 Capital Ratios: 2019 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge (5) 2018 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge (6) Common equity tier 1 capital 8.5 % 7.5 % 12.1 % 11.5 % 12.1 % 11.7 % 18.5 % 17.0 % 18.5 % 17.6 % Tier 1 capital 10.0 9.0 15.9 15.0 16.0 15.5 18.5 17.0 18.5 17.6 Total capital 12.0 11.0 16.7 15.9 16.9 16.3 19.4 17.9 19.4 18.5 (1) Under the applicable bank regulatory rules, we are not required to and, accordingly, did not revise previously-filed reported capital metrics and ratios following the change in accounting for LIHTC. (2) Other adjustments within CET1 primarily include the overfunded portion of the firm’s defined benefit pension plan obligation net of associated deferred tax liabilities, disallowed deferred tax assets, and other required credit risk based deductions. (3) Includes a CVA which reflects the risk of potential fair value adjustments for credit risk reflected in our valuation of OTC derivative contracts. We used a simple CVA approach in conformity with the Basel III advanced approaches. (4) Under the current advanced approaches rules and regulatory guidance concerning operational risk models, RWA attributable to operational risk can vary substantially from period-to-period, without direct correlation to the effects of a particular loss event on our results of operations and financial condition and impacting dates and periods that may differ from the dates and periods as of and during which the loss event is reflected in our financial statements, with the timing and categorization dependent on the processes for model updates and, if applicable, model revalidation and regulatory review and related supervisory processes. An individual loss event can have a significant effect on the output of our operational RWA under the advanced approaches depending on the severity of the loss event and its categorization among the seven Basel-defined UOMs. (5) Minimum requirements were phased in with full implementation beginning on January 1, 2019; minimum requirements listed are as of March 31, 2019 . (6) Minimum requirements were phased in with full implementation beginning on January 1, 2019; minimum requirements listed are as of December 31, 2018 . NA |
Net Interest Income
Net Interest Income | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Net Interest Income | Net Interest Income The following table presents the components of interest income and interest expense, and related NII, for the periods indicated: Three Months Ended March 31, (In millions) 2019 2018 (1) Interest income: Interest-bearing deposits with banks $ 119 $ 82 Investment securities: U.S. Treasury and federal agencies 369 255 State and political subdivisions 12 52 Other investments 122 159 Securities purchased under resale agreements 98 77 Loans and leases 198 155 Other interest-earning assets 109 77 Total interest income 1,027 857 Interest expense: Interest-bearing deposits 171 63 Securities sold under repurchase agreements 12 — Other short-term borrowings 4 3 Long-term debt 106 97 Other interest-bearing liabilities 61 51 Total interest expense 354 214 Net interest income $ 673 $ 643 (1) In the first quarter of 2018, approximately $15 million |
Expenses
Expenses | 3 Months Ended |
Mar. 31, 2019 | |
Other Expenses [Abstract] | |
Expenses | Expenses The following table presents the components of other expenses for the periods indicated: Three Months Ended March 31, (In millions) 2019 2018 Professional services $ 80 $ 79 Sales advertising public relations 27 26 Insurance 22 32 Regulatory fees and assessments 18 27 Bank operations 11 17 Other 117 99 Total other expenses $ 275 $ 280 Acquisition Costs We recorded $13 million of acquisition costs in the first quarter of 2019 primarily related to our acquisition of CRD. As we integrate CRD into our business, we expect to incur approximately $200 million of acquisition costs, including merger and integration costs, through 2021. Restructuring and Repositioning Charges Repositioning Charges In 2018 , we initiated a new expense program to accelerate efforts to become a higher-performing organization and help navigate challenging market and industry conditions. Beacon In the first quarter of 2019 , we released $4 million of restructuring accruals related to Beacon. We recorded no restructuring charges in the same period in 2018 . The following table presents aggregate activity for the periods indicated: (In millions) Employee Real Estate Asset and Other Write-offs Total Accrual balance at December 31, 2017 $ 166 $ 32 $ 3 $ 201 Accruals for Beacon — — — — Payments and other adjustments (22 ) (4 ) — (26 ) Accrual balance at March 31, 2018 $ 144 $ 28 $ 3 $ 175 Accrual balance at December 31, 2018 $ 303 $ 37 $ 1 341 Accruals for Beacon (4 ) — — (4 ) Payments and other adjustments (53 ) (25 ) — (78 ) Accrual balance at March 31, 2019 $ 246 $ 12 $ 1 $ 259 |
Occupancy Expense and Informati
Occupancy Expense and Information Systems and Communications Expense | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Occupancy Expense and Information Systems and Communications Expense | Occupancy Expense and Information Systems and Communications Expense Upon adoption of Topic 842 on January 1, 2019, we recognized right-of-use assets of approximately $0.91 billion and lease liabilities of approximately $1.06 billion . Occupancy expense and information systems and communications expense include depreciation of buildings, leasehold improvements, computer hardware and software, equipment, furniture and fixtures, and amortization of lease right-of-use assets. Total depreciation and amortization was $205 million in the first quarter of 2019 . We use our incremental borrowing rate to determine the present value of the lease payments for finance and operating leases described below. Additionally, we do not separate nonlease components such as real estate taxes and common area maintenance from base lease payments. As of March 31, 2019 , an aggregate net book value of $94 million for the finance lease related to our One Lincoln Street Boston headquarters is recorded in premises and equipment, with the related lease liability of $160 million recorded in long-term debt, in our consolidated statement of condition. Finance lease right-of-use asset amortization is recorded in occupancy expense on a straight-line basis in our consolidated statement of income over the respective lease term. Lease payments are recorded as a reduction of the liability, with a portion recorded as imputed interest expense. In the quarter ended March 31, 2019, interest expense related to the finance lease obligation reflected in NII was $3 million . As of March 31, 2019 , accumulated amortization of the finance lease right-of-use asset was $40 million . Operating lease right-of-use assets with an aggregate net book value of $899 million are recorded in other assets, with the related lease liability of $1.06 billion recorded in accrued expenses and other liabilities in our consolidated statement of condition. We have entered into non-cancellable operating leases for premises and equipment. Nearly all of these leases include renewal options, and only those reasonably certain of being exercised are included in the term of the lease. Costs for operating leases are recorded on a straight-line basis which includes both interest expense and right-of-use asset amortization. Operating lease costs for office space are recorded in occupancy expense. Costs related to operating leases for equipment are recorded in information systems and communications expense. As of March 31, 2019 , we have additional operating leases, primarily for office space, that have not yet commenced of approximately $497 million of undiscounted future minimum lease payments. These leases will commence between fiscal year 2019 and fiscal year 2023 with lease terms of 11 to 15 years . The majority of these future payments relate to the new Boston headquarters lease executed in the first quarter of 2019 , replacing the One Lincoln Street Boston property. None of our leases contain residual value guarantees. The following table presents lease costs, sublease rental income, cash flows and new leases arising from lease transactions for the quarter ended March 31, 2019 : (In millions) Three Months Ended March 31, 2019 Finance lease: Amortization of right-of-use assets $ 5 Interest on lease liabilities 3 Total finance lease expense 8 Sublease income (2 ) Net finance lease expense 6 Operating lease: Operating lease expense 44 Sublease income (1 ) Net operating lease expense 43 Net lease expense $ 49 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 3 Operating cash flows from operating leases 51 Financing cash flows from finance leases 31 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 29 Finance leases — The following table presents future minimum lease payments under non-cancellable leases as of March 31, 2019 : (In millions) Operating Leases Finance Leases Total 2019 (excluding the first quarter of 2019) $ 144 $ 31 $ 175 2020 185 42 227 2021 174 42 216 2022 151 42 193 2023 131 30 161 Thereafter 400 — 400 Total future minimum lease payments 1,185 187 1,372 Less imputed interest (125 ) (27 ) (152 ) Total $ 1,060 $ 160 $ 1,220 The following table presents details related to remaining lease terms and discount rate for the quarter ended March 31, 2019 : Three Months Ended March 31, 2019 Weighted-average remaining lease term (in years): Finance leases 4.5 Operating leases 7.8 Weighted-average discount rate: Finance leases 7 % Operating leases 3 |
Occupancy Expense and Information Systems and Communications Expense | Occupancy Expense and Information Systems and Communications Expense Upon adoption of Topic 842 on January 1, 2019, we recognized right-of-use assets of approximately $0.91 billion and lease liabilities of approximately $1.06 billion . Occupancy expense and information systems and communications expense include depreciation of buildings, leasehold improvements, computer hardware and software, equipment, furniture and fixtures, and amortization of lease right-of-use assets. Total depreciation and amortization was $205 million in the first quarter of 2019 . We use our incremental borrowing rate to determine the present value of the lease payments for finance and operating leases described below. Additionally, we do not separate nonlease components such as real estate taxes and common area maintenance from base lease payments. As of March 31, 2019 , an aggregate net book value of $94 million for the finance lease related to our One Lincoln Street Boston headquarters is recorded in premises and equipment, with the related lease liability of $160 million recorded in long-term debt, in our consolidated statement of condition. Finance lease right-of-use asset amortization is recorded in occupancy expense on a straight-line basis in our consolidated statement of income over the respective lease term. Lease payments are recorded as a reduction of the liability, with a portion recorded as imputed interest expense. In the quarter ended March 31, 2019, interest expense related to the finance lease obligation reflected in NII was $3 million . As of March 31, 2019 , accumulated amortization of the finance lease right-of-use asset was $40 million . Operating lease right-of-use assets with an aggregate net book value of $899 million are recorded in other assets, with the related lease liability of $1.06 billion recorded in accrued expenses and other liabilities in our consolidated statement of condition. We have entered into non-cancellable operating leases for premises and equipment. Nearly all of these leases include renewal options, and only those reasonably certain of being exercised are included in the term of the lease. Costs for operating leases are recorded on a straight-line basis which includes both interest expense and right-of-use asset amortization. Operating lease costs for office space are recorded in occupancy expense. Costs related to operating leases for equipment are recorded in information systems and communications expense. As of March 31, 2019 , we have additional operating leases, primarily for office space, that have not yet commenced of approximately $497 million of undiscounted future minimum lease payments. These leases will commence between fiscal year 2019 and fiscal year 2023 with lease terms of 11 to 15 years . The majority of these future payments relate to the new Boston headquarters lease executed in the first quarter of 2019 , replacing the One Lincoln Street Boston property. None of our leases contain residual value guarantees. The following table presents lease costs, sublease rental income, cash flows and new leases arising from lease transactions for the quarter ended March 31, 2019 : (In millions) Three Months Ended March 31, 2019 Finance lease: Amortization of right-of-use assets $ 5 Interest on lease liabilities 3 Total finance lease expense 8 Sublease income (2 ) Net finance lease expense 6 Operating lease: Operating lease expense 44 Sublease income (1 ) Net operating lease expense 43 Net lease expense $ 49 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 3 Operating cash flows from operating leases 51 Financing cash flows from finance leases 31 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 29 Finance leases — The following table presents future minimum lease payments under non-cancellable leases as of March 31, 2019 : (In millions) Operating Leases Finance Leases Total 2019 (excluding the first quarter of 2019) $ 144 $ 31 $ 175 2020 185 42 227 2021 174 42 216 2022 151 42 193 2023 131 30 161 Thereafter 400 — 400 Total future minimum lease payments 1,185 187 1,372 Less imputed interest (125 ) (27 ) (152 ) Total $ 1,060 $ 160 $ 1,220 The following table presents details related to remaining lease terms and discount rate for the quarter ended March 31, 2019 : Three Months Ended March 31, 2019 Weighted-average remaining lease term (in years): Finance leases 4.5 Operating leases 7.8 Weighted-average discount rate: Finance leases 7 % Operating leases 3 |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share For additional information on our earnings per share calculation methodologies, refer to page 175 in Note 23 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2018 Form 10-K. The following table presents the computation of basic and diluted earnings per common share for the periods indicated: Three Months Ended March 31, (Dollars in millions, except per share amounts) 2019 2018 Net income $ 508 $ 659 Less: Preferred stock dividends (55 ) (55 ) Dividends and undistributed earnings allocated to participating securities (1) (1 ) (1 ) Net income available to common shareholders $ 452 $ 603 Average common shares outstanding (In thousands): Basic average common shares 377,915 367,439 Effect of dilutive securities: equity-based awards 3,788 5,180 Diluted average common shares 381,703 372,619 Anti-dilutive securities (2) 1,951 — Earnings per common share: Basic $ 1.20 $ 1.64 Diluted (3) 1.18 1.62 (1) Represents the portion of net income available to common equity allocated to participating securities, composed of unvested and fully vested SERP (Supplemental executive retirement plans) shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings. (2) Represents equity-based awards outstanding but not included in the computation of diluted average common shares, because their effect was anti-dilutive. Additional information about equity-based awards is provided on pages 169 to 171 in Note 18 to the consolidated financial statements in our 2018 Form 10-K. (3) |
Line of Business Information
Line of Business Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Line of Business Information | Line of Business Information Our operations are organized into two lines of business: Investment Servicing and Investment Management, which are defined based on products and services provided. The results of operations for these lines of business are not necessarily comparable with those of other companies, including companies in the financial services industry. For information about our two lines of business, as well as revenues, expenses and capital allocation methodologies associated with them, refer to pages 175 to 176 in Note 24 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2018 Form 10-K. The following is a summary of our line of business results for the periods indicated. The "Other" columns represent costs incurred that are not allocated to a specific line of business, including certain severance and restructuring costs, acquisition costs and certain provisions for legal contingencies. Three Months Ended March 31, Investment Investment Other Total (Dollars in millions) 2019 2018 2019 2018 2019 2018 2019 2018 Servicing fees $ 1,251 $ 1,421 $ — $ — $ — $ — $ 1,251 $ 1,421 Management fees — — 420 472 — — 420 472 Foreign exchange trading services 246 274 34 30 — — 280 304 Securities finance 117 141 1 — — — 118 141 Processing fees and other 180 77 11 — — — 191 77 Total fee revenue 1,794 1,913 466 502 — — 2,260 2,415 Net interest income 679 648 (6 ) (5 ) — — 673 643 Gains (losses) related to investment securities, net (1 ) (2 ) — — — — (1 ) (2 ) Total revenue 2,472 2,559 460 497 — — 2,932 3,056 Total expenses 1,864 1,870 406 398 23 — 2,293 2,268 Income before income tax expense $ 604 $ 689 $ 54 $ 99 $ (23 ) $ — $ 635 $ 788 Pre-tax margin 24 % 27 % 12 % 20 % 22 % 26 % |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers For additional information on our revenue from contracts with customers, including revenues associated with both our Investment Servicing and Investment Management lines of business, refer to pages 177 to 178 in Note 25 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2018 Form 10-K. Revenue by category In the following table, revenue is disaggregated by our two lines of business and by revenue stream for which the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended March 31, 2019 Investment Servicing Investment Management Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2019 Servicing fees $ 1,251 $ — $ 1,251 $ — $ — $ — $ 1,251 Management fees — — — 420 — 420 420 Foreign exchange trading services 86 160 246 34 — 34 280 Securities finance 70 47 117 — 1 1 118 Processing fees and other 116 64 180 — 11 11 191 Total fee revenue 1,523 271 1,794 454 12 466 2,260 Net interest income — 679 679 — (6 ) (6 ) 673 Gains (losses) related to investment securities, net — (1 ) (1 ) — — — (1 ) Total revenue $ 1,523 $ 949 $ 2,472 $ 454 $ 6 $ 460 $ 2,932 Three Months Ended March 31, 2018 Investment Servicing Investment Management Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2018 Servicing fees $ 1,421 $ — $ 1,421 $ — $ — $ — $ 1,421 Management fees — — — 472 — 472 472 Foreign exchange trading services 95 179 274 30 — 30 304 Securities finance 77 64 141 — — — 141 Processing fees and other (1) 19 58 77 — — — 77 Total fee revenue 1,612 301 1,913 502 — 502 2,415 Net interest income (1) — 648 648 — (5 ) (5 ) 643 Gains (losses) related to investment securities, net — (2 ) (2 ) — — — (2 ) Total revenue $ 1,612 $ 947 $ 2,559 $ 502 $ (5 ) $ 497 $ 3,056 1) In the first quarter of 2018, approximately $15 million of swap costs were reclassified from processing fees and other revenue within fee revenue to net interest income to conform to current presentation. Contract balances and contract costs A s of March 31, 2019 and December 31, 2018 , net receivables of $2.80 billion and $2.75 billion , respectively, are included in accrued interest and fees receivable, representing amounts billed or currently billable to or due from our customers related to revenue from contracts with customers. As performance obligations are satisfied, we have an unconditional right to payment and billing is generally performed monthly; therefore, we do not have significant contract assets or liabilities. |
Non-U.S. Activities
Non-U.S. Activities | 3 Months Ended |
Mar. 31, 2019 | |
Segments, Geographical Areas [Abstract] | |
Non-U.S. Activities | Non-U.S. Activities We define our non-U.S. activities as those revenue-producing business activities that arise from clients which are generally serviced or managed outside the U.S. Due to the integrated nature of our business, precise segregation of our U.S. and non-U.S. activities is not possible. Subjective estimates, assumptions and other judgments are applied to quantify the financial results and assets related to our non-U.S. activities, including our application of funds transfer pricing, our asset and liability management policies and our allocation of certain indirect corporate expenses. Management periodically reviews and updates its processes for quantifying the financial results and assets related to our non-U.S. activities. The following table presents our U.S. and non-U.S. financial results for the periods indicated: Three Months Ended March 31, 2019 2018 (In millions) Non-U.S. (1) U.S. Total Non-U.S. (1) U.S. Total Total revenue $ 1,231 $ 1,701 $ 2,932 $ 1,321 $ 1,735 $ 3,056 Income before income tax expense 249 386 635 395 393 788 (1) Geographic mix is generally based on the domicile of the entity servicing the funds and is not necessarily representative of the underlying asset mix. Non-U.S. assets were $77.73 billion and $78.49 billion as of March 31, 2019 and 2018 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accounting and financial reporting policies of State Street Corporation conform to U.S. GAAP. State Street Corporation, the Parent Company, is a financial holding company headquartered in Boston, Massachusetts. Unless otherwise indicated or unless the context requires otherwise, all references in these notes to consolidated financial statements to “State Street,” “we,” “us,” “our” or similar references mean State Street Corporation and its subsidiaries on a consolidated basis, including our principal banking subsidiary, State Street Bank. The accompanying consolidated financial statements should be read in conjunction with the financial and risk factor information included in our 2018 Form 10-K, which we previously filed with the SEC. The consolidated financial statements accompanying these condensed notes are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the consolidated results of operations in these financial statements, have been made. Certain previously reported amounts presented in this Form 10-Q have been reclassified to conform to current-period presentation. Events occurring subsequent to the date of our consolidated statement of condition were evaluated for potential recognition or disclosure in our consolidated financial statements through the date we filed this Form 10-Q with the SEC. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that may materially affect the reported amounts of assets, liabilities, equity, revenue and expenses. As a result of unanticipated events or circumstances, actual results could differ from those estimates. These accounting estimates reflect the best judgment of management, but actual results could differ. Our consolidated statement of condition as of December 31, 2018 included in the accompanying consolidated financial statements was derived from the audited financial statements as of that date, but does not include all notes required by U.S. GAAP for a complete set of consolidated financial statements. |
Recent Accounting Developments | Recent Accounting Developments Relevant standards that were recently issued but not yet adopted as of March 31, 2019: Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The standard replaces the existing incurred loss impairment guidance and requires immediate recognition of expected credit losses for financial assets carried at amortized cost, including trade and other receivables, loans and commitments, held-to-maturity debt securities and other financial assets, held at the reporting date to be measured based on historical experience, current conditions and reasonable supportable forecasts. The standard also amends existing impairment guidance for available-for-sale securities, and credit losses will be recorded as an allowance versus a write-down of the amortized cost basis of the security and will allow for a reversal of impairment loss when the credit of the issuer improves. The guidance requires a cumulative effect of initial application to be recognized in retained earnings at the date of initial application. January 1, 2020, early adoption permitted We are continuing to assess the impact of the standard on our consolidated financial statements. We have established a steering committee to provide cross-functional governance over the project plan and key decisions, and continue to develop key accounting policies, assess new and existing credit loss models and processes and address data requirements and sources to ensure that the expected credit losses are calculated in accordance with the standard. We have developed credit loss models that are currently under review by our Model Validation Group. Based on our analysis to date, we expect the recognition of credit losses to accelerate under the new standard. We are continuing to assess the extent of the impact on the allowance for credit losses which will be impacted by our portfolio and the macroeconomic factors on the date of adoption. We plan to adopt the new guidance on January 1, 2020. ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The standard simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The ASU requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. January 1, 2020, early adoption permitted We are evaluating the impacts of early adoption, and will apply this standard prospectively upon adoption. ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement The standard eliminates, amends and adds disclosure requirements for fair value measurements. January 1, 2020, early adoption permitted, including partial early adoption. Provisions that eliminate or amend disclosures can be early adopted without early adopting the new disclosure requirements. We have elected to early adopt the provisions of the new standard that eliminate or amend disclosures as of December 31, 2018 and our disclosures were modified accordingly. The provisions of the new standard that add disclosures will be adopted upon the effective date of the standard. ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement. That Is a Service Contract (a consensus of the Financial Accounting Standards Board Emerging Issues Task Force) This standard addresses accounting for fees paid by a customer for implementation, set-up and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor, i.e., a service contract. The new guidance aligns treatment for capitalization of implementation costs with guidance on internal-use software. January 1, 2020, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. Relevant standards that were adopted in the first quarter of 2019: We adopted ASU 2016-02, Leases (Topic 842) and relevant amendments, effective January 1, 2019. The standard represents a change to lease accounting and requires all leases, other than short-term leases, to be reported on the balance sheet through recognition of a right-of-use asset and a corresponding liability for future lease obligations. The standard also requires incremental disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities. We adopted Topic 842 by applying the transition method whereby comparative periods have not been restated, and no adjustment to retained earnings was required. Upon adoption of the standard, we recognized right-of-use assets of approximately $0.9 billion and lease liabilities of approximately $1.1 billion . This increase largely relates to the present value of future minimum lease payments due under existing operating leases of office space. No material changes are expected to the recognition of lease expenses in the Consolidated Statement of Income as a result of the adoption of Topic 842. For adoption, we elected Topic 842’s package of three practical expedients, and (1) did not reassess whether any expired or existing contracts are or contain leases, (2) did not reassess the lease classification for any expired or existing leases, and (3) did not reassess initial direct costs for any existing leases. In addition, we made an accounting policy election not to apply the recognition requirements to short-term leases, and elected the practical expedient to not separate lease and nonlease components of leases. We adopted ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium amortization on Purchased Callable Debt Securities, effective January 1, 2019. The standard shortens the amortization period for certain purchased callable debt securities to the earliest call date. The standard does not impact debt securities which are held at a discount. The guidance requires a cumulative effect of initial application to be recognized in retained earnings at the beginning of the period of adoption. The impact to beginning retained earnings was not material. We adopted ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, effective January 1, 2019. This standard provides an election to reclassify the stranded tax effects resulting from the enactment of the Tax Cuts and Jobs Act of 2017, from accumulated other comprehensive income to retained earnings. Upon adoption of the standard we reclassified approximately $84 million |
Change In Accounting Policy | Change in Accounting Policy In the first quarter of 2019 , we voluntarily changed our accounting method under FASB ASC 323, Investments-Equity Method and Joint Ventures, for investments in LIHTC from the equity method of accounting to the proportional amortization method of accounting. While both methods of accounting are acceptable under U.S. GAAP, we believe the proportional method is preferable because it more fairly represents the economics of investments in LIHTC, which are made primarily for the purpose of receiving tax credits and other tax benefits. In addition, this method aligns to the method typically used by the companies within our industry which have similar investments. In addition to the change in the timing of the recognition of income on investments in LIHTC, amortization of the investments in LIHTC is now recorded fully within the income tax expense line instead of the processing fees and other line on the consolidated statements of operations. This change in accounting method has been applied retrospectively to all prior periods presented herein being revised, resulting in a reduction in the opening balance of retained earnings as of January 1, 2018 of $47 million |
Fair Value Measurements | Fair Value Measurements We carry trading account assets and liabilities, AFS debt securities, certain equity securities and various types of derivative financial instruments, at fair value in our consolidated statement of condition on a recurring basis. Changes in the fair values of these financial assets and liabilities are recorded either as components of our consolidated statement of income or as components of AOCI within shareholders' equity in our consolidated statement of condition. We measure fair value for the above-described financial assets and liabilities in conformity with U.S. GAAP that governs the measurement of the fair value of financial instruments. Management believes that its valuation techniques and underlying assumptions used to measure fair value conform to the provisions of U.S. GAAP. We categorize the financial assets and liabilities that we carry at fair value based on a prescribed three-level valuation hierarchy. For information about our valuation techniques for financial assets and financial liabilities measured at fair value and the fair value hierarchy, refer to pages 129 to 136 in Note 2 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2018 Form 10-K. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Developments | In addition, the following table presents the effect of the changes on financial statement line items for prior periods presented: Consolidated Statement of Condition Impact December 31, 2018 (In millions) As Originally Reported (1) Effect of Change As Adjusted Assets: Other assets $ 34,434 $ (30 ) $ 34,404 Total assets $ 244,626 $ (30 ) $ 244,596 Liabilities and stockholders' equity: Accrued expenses and other liabilities $ 24,209 $ 23 $ 24,232 Retained earnings 20,606 (53 ) 20,553 Total liabilities and stockholders' equity $ 244,626 $ (30 ) $ 244,596 Consolidated Statement of Income Impact Three Months Ended March 31, 2018 (Dollars in millions, except per share amounts) As Originally Reported (1) Effect of Change As Adjusted Processing fees and other $ 52 $ 25 $ 77 Total fee revenue 2,390 25 2,415 Income tax expense 102 27 129 Net income $ 661 $ (2 ) $ 659 Earnings per common share: Basic $ 1.65 $ (.01 ) $ 1.64 Diluted 1.62 — 1.62 (1) In the first quarter of 2019, we reclassified certain immaterial revenues and expenses related to an affiliated entity from a net presentation to a gross presentation. Previously reported amounts for quarterly periods in 2018 have been reclassified to conform to the 2019 presentation. The impact of change to the statement of cash flows is immaterial. The following table presents what our results would have been had we continued to utilize the equity method to record investments in LIHTC in the first quarter of 2019: Consolidated Statement of Income Impact Three Months Ended March 31, 2019 (Dollars in millions, except per share amounts) As Computed under Equity Method Effect of Change As Reported under the Proportional Amortization Method Processing fees and other $ 169 $ 22 $ 191 Total fee revenue 2,238 22 22 2,260 Income tax expense 105 22 22 127 Net income $ 508 $ — $ 508 Earnings per common share: Basic $ 1.20 $ — $ 1.20 Diluted 1.18 — 1.18 Relevant standards that were recently issued but not yet adopted as of March 31, 2019: Standard Description Date of Adoption Effects on the financial statements or other significant matters ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The standard replaces the existing incurred loss impairment guidance and requires immediate recognition of expected credit losses for financial assets carried at amortized cost, including trade and other receivables, loans and commitments, held-to-maturity debt securities and other financial assets, held at the reporting date to be measured based on historical experience, current conditions and reasonable supportable forecasts. The standard also amends existing impairment guidance for available-for-sale securities, and credit losses will be recorded as an allowance versus a write-down of the amortized cost basis of the security and will allow for a reversal of impairment loss when the credit of the issuer improves. The guidance requires a cumulative effect of initial application to be recognized in retained earnings at the date of initial application. January 1, 2020, early adoption permitted We are continuing to assess the impact of the standard on our consolidated financial statements. We have established a steering committee to provide cross-functional governance over the project plan and key decisions, and continue to develop key accounting policies, assess new and existing credit loss models and processes and address data requirements and sources to ensure that the expected credit losses are calculated in accordance with the standard. We have developed credit loss models that are currently under review by our Model Validation Group. Based on our analysis to date, we expect the recognition of credit losses to accelerate under the new standard. We are continuing to assess the extent of the impact on the allowance for credit losses which will be impacted by our portfolio and the macroeconomic factors on the date of adoption. We plan to adopt the new guidance on January 1, 2020. ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The standard simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The ASU requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. January 1, 2020, early adoption permitted We are evaluating the impacts of early adoption, and will apply this standard prospectively upon adoption. ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement The standard eliminates, amends and adds disclosure requirements for fair value measurements. January 1, 2020, early adoption permitted, including partial early adoption. Provisions that eliminate or amend disclosures can be early adopted without early adopting the new disclosure requirements. We have elected to early adopt the provisions of the new standard that eliminate or amend disclosures as of December 31, 2018 and our disclosures were modified accordingly. The provisions of the new standard that add disclosures will be adopted upon the effective date of the standard. ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement. That Is a Service Contract (a consensus of the Financial Accounting Standards Board Emerging Issues Task Force) This standard addresses accounting for fees paid by a customer for implementation, set-up and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor, i.e., a service contract. The new guidance aligns treatment for capitalization of implementation costs with guidance on internal-use software. January 1, 2020, early adoption permitted We are currently evaluating the impact of the new standard and the early adoption provisions. |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present information with respect to our financial assets and liabilities carried at fair value in our consolidated statement of condition on a recurring basis as of the dates indicated: Fair Value Measurements on a Recurring Basis As of March 31, 2019 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 34 $ — $ — $ 34 Non-U.S. government securities 148 176 — 324 Other — 498 — 498 Total trading account assets 182 674 — 856 Available-for-sale investment securities: U.S. Treasury and federal agencies: Direct obligations 1,041 — — 1,041 Mortgage-backed securities — 20,043 — 20,043 Total U.S. Treasury and federal agencies 1,041 20,043 — 21,084 Asset-backed securities: Student loans — 481 — 481 Credit cards — 586 — 586 Collateralized loan obligations — 218 668 886 Total asset-backed securities — 1,285 668 1,953 Non-U.S. debt securities: Mortgage-backed securities — 1,517 — 1,517 Asset-backed securities — 884 627 1,511 Government securities — 12,572 — 12,572 Other (2) — 6,531 45 6,576 Total non-U.S. debt securities — 21,504 672 22,176 State and political subdivisions — 1,940 — 1,940 Collateralized mortgage obligations — 129 — 129 Other U.S. debt securities — 1,720 — 1,720 Total available-for-sale investment securities 1,041 46,621 1,340 49,002 Other assets: Derivative instruments: Foreign exchange contracts — 11,140 4 $ (6,966 ) 4,178 Total derivative instruments — 11,140 4 (6,966 ) 4,178 Other — 442 — — 442 Total assets carried at fair value $ 1,223 $ 58,877 $ 1,344 $ (6,966 ) $ 54,478 Liabilities: Accrued expenses and other liabilities: Derivative instruments: Foreign exchange contracts $ — $ 11,297 $ 3 $ (7,519 ) $ 3,781 Interest rate contracts 17 52 — — 69 Other derivative contracts — 228 — — 228 Total derivative instruments 17 11,577 3 (7,519 ) 4,078 Total liabilities carried at fair value $ 17 $ 11,577 $ 3 $ (7,519 ) $ 4,078 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between us and the counterparty. Netting also reflects asset and liability reductions of $0.64 billion and $1.19 billion , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of March 31, 2019 , the fair value of other non-U.S. debt securities included $1.05 billion of covered bonds and $1.33 billion of corporate bonds. Fair Value Measurements on a Recurring Basis As of December 31, 2018 (In millions) Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) Impact of Netting (1) Total Net Carrying Value in Consolidated Statement of Condition Assets: Trading account assets: U.S. government securities $ 34 $ — $ — $ 34 Non-U.S. government securities 146 179 — 325 Other — 501 — 501 Total trading account assets 180 680 — 860 Available-for-sale investment securities: U.S. Treasury and federal agencies: Direct obligations 1,039 — — 1,039 Mortgage-backed securities — 15,968 — 15,968 Total U.S. Treasury and federal agencies 1,039 15,968 — 17,007 Asset-backed securities: Student loans — 541 — 541 Credit cards — 583 — 583 Collateralized loan obligations — — 593 593 Total asset-backed securities — 1,124 593 1,717 Non-U.S. debt securities: Mortgage-backed securities — 1,682 — 1,682 Asset-backed securities — 943 631 1,574 Government securities — 12,793 — 12,793 Other (2) — 6,544 58 6,602 Total non-U.S. debt securities — 21,962 689 22,651 State and political subdivisions — 1,918 — 1,918 Collateralized mortgage obligations — 195 2 197 Other U.S. debt securities — 1,658 — 1,658 Total available-for-sale investment securities 1,039 42,825 1,284 45,148 Other assets: Derivative instruments: Foreign exchange contracts — 16,382 4 $ (11,210 ) 5,176 Interest rate contracts 13 — — — 13 Total derivative instruments 13 16,382 4 (11,210 ) 5,189 Other — 395 — — 395 Total assets carried at fair value $ 1,232 $ 60,282 $ 1,288 $ (11,210 ) $ 51,592 Liabilities: Accrued expenses and other liabilities: Derivative instruments: Foreign exchange contracts $ — $ 16,518 $ 4 $ (11,564 ) $ 4,958 Interest rate contracts — 71 — — 71 Other derivative contracts — 214 — — 214 Total derivative instruments — 16,803 4 (11,564 ) 5,243 Total liabilities carried at fair value $ — $ 16,803 $ 4 $ (11,564 ) $ 5,243 (1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between us and the counterparty. Netting also reflects asset and liability reductions of $0.99 billion and $1.34 billion , respectively, for cash collateral received from and provided to derivative counterparties. (2) As of December 31, 2018 , the fair value of other non-U.S. debt securities included $1.30 billion of covered bonds and $1.33 billion |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present activity related to our level 3 financial assets during the first quarters of 2019 and 2018 , respectively. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the first quarter of 2018 , transfers into level 3 were primarily related to certain ABS, including non-US debt securities. During the first quarter of 2019 , there were no transfers into level 3. During the first quarters of 2019 and 2018 , transfers out of level 3 were mainly related to certain ABS, municipal bonds and non-U.S. MBS, for which fair value was measured using prices for which observable market information became available. Fair Value Measurements Using Significant Unobservable Inputs Three Months Ended March 31, 2019 Fair Value as of Total Realized and Purchases Sales Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value as of March 31, 2019 (1) Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of March 31, 2019 (In millions) Recorded in Revenue (1) Recorded in Other Comprehensive Income (1) Assets: Available-for-sale Investment securities: Asset-backed securities: Collateralized loan obligations $ 593 $ 1 $ (2 ) $ 132 $ — $ (56 ) $ — $ — $ 668 Total asset-backed securities 593 1 (2 ) 132 — (56 ) — — 668 Non-U.S. debt securities: Asset-backed securities 631 — (2 ) 9 — (11 ) — — 627 Other 58 — — — — (1 ) — (12 ) 45 Total non-U.S. debt securities 689 — (2 ) 9 — (12 ) — (12 ) 672 Collateralized mortgage obligations 2 — — — — (2 ) — — — Total Available-for-sale investment securities 1,284 1 (4 ) 141 — (70 ) — (12 ) 1,340 Derivative instruments: Foreign exchange contracts 4 (3 ) — 3 — — — — 4 $ (1 ) Total derivative instruments 4 (3 ) — 3 — — — — 4 (1 ) Total assets carried at fair value $ 1,288 $ (2 ) $ (4 ) $ 144 $ — $ (70 ) $ — $ (12 ) $ 1,344 $ (1 ) (1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within f oreign exchange trading services. Fair Value Measurements Using Significant Unobservable Inputs Three Months Ended March 31, 2018 Fair Value as of December 31, 2017 Total Realized and Purchases Sales Settlements Transfers Transfers Fair Value as of March 31, 2018 (1) Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of March 31, 2018 (In millions) Recorded (1) Recorded (1) Assets: Available-for-sale Investment securities: Asset-backed securities: Collateralized loan obligations $ 1,358 $ 1 $ (1 ) $ 318 $ (636 ) $ (5 ) $ — $ (209 ) $ 826 Total asset-backed securities 1,358 1 (1 ) 318 (636 ) (5 ) — (209 ) 826 Non-U.S. debt securities: Mortgage-backed securities 119 — — — — — — (119 ) — Asset-backed securities 402 — — 110 (310 ) 2 68 — 272 Other 204 — — — — (26 ) — — 178 Total non-U.S. debt securities 725 — — 110 (310 ) (24 ) 68 (119 ) 450 State and political subdivisions 43 — — — — (1 ) — (5 ) 37 Total Available-for-sale investment securities 2,126 1 (1 ) 428 (946 ) (30 ) 68 (333 ) 1,313 Other assets: Derivative instruments: Foreign exchange contracts 1 (2 ) — 4 — — — — 3 $ (2 ) Total derivative instruments 1 (2 ) — 4 — — — — 3 (2 ) Total assets carried at fair value $ 2,127 $ (1 ) $ (1 ) $ 432 $ (946 ) $ (30 ) $ 68 $ (333 ) $ 1,316 $ (2 ) (1) |
Fair Value Inputs, Quantitative Information | The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level 3 financial assets and liabilities measured at fair value on a recurring basis for which we use internally-developed pricing models. The significant unobservable inputs for our level 3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker/dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer. Quantitative Information about Level 3 Fair Value Measurements Fair Value Weighted-Average (Dollars in millions) As of March 31, 2019 As of December 31, 2018 Valuation Technique Significant Unobservable Input (1) As of March 31, 2019 As of December 31, 2018 Significant unobservable inputs readily available to State Street: Assets: Derivative Instruments, foreign exchange contracts $ 4 $ 4 Option model Volatility 7.8 % 11.4 % Total $ 4 $ 4 Liabilities: Derivative instruments, foreign exchange contracts $ 3 $ 4 Option model Volatility 7.3 % 11.4 % Total $ 3 $ 4 (1) |
Carrying Value and Estimated Fair Value of Financial Instruments by Fair Value Hierarchy | The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value on a recurring basis, as they would be categorized within the fair value hierarchy, as of the dates indicated: Fair Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) March 31, 2019 Financial Assets: Cash and due from banks $ 4,469 $ 4,469 $ 4,469 $ — $ — Interest-bearing deposits with banks 53,864 53,864 — 53,864 — Securities purchased under resale agreements 1,522 1,522 — 1,522 — Investment securities held-to-maturity 41,145 40,971 13,198 27,652 121 Net loans 23,311 23,288 — 22,245 1,043 Other (1) 8,500 8,500 — 8,500 — Financial Liabilities: Deposits: Non-interest-bearing $ 35,295 $ 35,295 $ — $ 35,295 $ — Interest-bearing - U.S. 62,988 62,988 — 62,988 — Interest-bearing - non-U.S. 64,188 64,188 — 64,188 — Securities sold under repurchase agreements 1,420 1,420 — 1,420 — Other short-term borrowings 947 947 — 947 — Long-term debt 11,182 11,319 — 11,142 177 Other (1) 8,500 8,500 — 8,500 — (1) Represents a portion of underlying client assets related to our enhanced custody business, which clients have allowed us to transfer and re-pledge. Fair Value Hierarchy (In millions) Reported Amount Estimated Fair Value Quoted Market Prices in Active Markets (Level 1) Pricing Methods with Significant Observable Market Inputs (Level 2) Pricing Methods with Significant Unobservable Market Inputs (Level 3) December 31, 2018 Financial Assets: Cash and due from banks $ 3,597 $ 3,597 $ 3,597 $ — $ — Interest-bearing deposits with banks 73,040 73,040 — 73,040 — Securities purchased under resale agreements 4,679 4,679 — 4,679 — Investment securities held-to-maturity 41,914 41,351 14,541 26,688 122 Net loans (excluding leases) (1) 25,722 25,561 — 24,648 913 Other (2) 8,500 8,500 — 8,500 — Financial Liabilities: Deposits: Non-interest-bearing $ 44,804 $ 44,804 $ — $ 44,804 $ — Interest-bearing - U.S. 66,235 66,235 — 66,235 — Interest-bearing - non-U.S. 69,321 69,321 — 69,321 — Securities sold under repurchase agreements 1,082 1,082 — 1,082 — Other short-term borrowings 3,092 3,092 — 3,092 — Long-term debt 11,093 11,048 — 10,865 183 Other (2) 8,500 8,500 — 8,500 — (1) Includes $10 million of loans classified as held-for-sale that were measured at fair value on a non-recurring basis as of December 31, 2018 . (2) |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | The following table presents the amortized cost, fair value and associated unrealized gains and losses of AFS and HTM investment securities as of the dates indicated: March 31, 2019 December 31, 2018 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value (In millions) Gains Losses Gains Losses Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 1,035 $ 6 $ — $ 1,041 $ 1,035 $ 4 $ — $ 1,039 Mortgage-backed securities 20,020 132 109 20,043 16,112 37 181 15,968 Total U.S. Treasury and federal agencies 21,055 138 109 21,084 17,147 41 181 17,007 Asset-backed securities: Student loans (1) 477 4 — 481 538 4 1 541 Credit cards 612 — 26 586 609 — 26 583 Collateralized loan obligations 889 — 3 886 594 1 2 593 Total asset-backed securities 1,978 4 29 1,953 1,741 5 29 1,717 Non-U.S. debt securities: Mortgage-backed securities 1,520 1 4 1,517 1,687 — 5 1,682 Asset-backed securities 1,517 — 6 1,511 1,580 — 6 1,574 Government securities 12,489 97 14 12,572 12,816 22 45 12,793 Other (2) 6,520 59 3 6,576 6,600 18 16 6,602 Total non-U.S. debt securities 22,046 157 27 22,176 22,683 40 72 22,651 State and political subdivisions (3) 1,903 39 2 1,940 1,905 20 7 1,918 Collateralized mortgage obligations 130 — 1 129 200 — 3 197 Other U.S. debt securities 1,715 12 7 1,720 1,683 1 26 1,658 Total $ 48,827 $ 350 $ 175 $ 49,002 $ 45,359 $ 107 $ 318 $ 45,148 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 13,369 $ — $ 123 $ 13,246 $ 14,794 $ — $ 199 $ 14,595 Mortgage-backed securities 22,568 76 250 22,394 21,647 24 518 21,153 Total U.S. Treasury and federal agencies 35,937 76 373 35,640 36,441 24 717 35,748 Asset-backed securities: Student loans (1) 3,286 26 16 3,296 3,191 35 10 3,216 Credit cards — — — — 193 — — 193 Other 1 — — 1 1 — — 1 Total asset-backed securities 3,287 26 16 3,297 3,385 35 10 3,410 Non-U.S. debt securities: Mortgage-backed securities 575 82 8 649 638 77 9 706 Asset-backed securities 98 — — 98 223 — — 223 Government securities 399 1 — 400 358 1 — 359 Other 44 — — 44 46 — — 46 Total non-U.S. debt securities 1,116 83 8 1,191 1,265 78 9 1,334 Collateralized mortgage obligations 805 40 2 843 823 38 2 859 Total $ 41,145 $ 225 $ 399 $ 40,971 $ 41,914 $ 175 $ 738 $ 41,351 (1) Primarily comprised of securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans. (2) As of March 31, 2019 and December 31, 2018 , the fair value of other non-U.S. debt securities included $1.05 billion and $1.30 billion , respectively, of covered bonds and $1.33 billion of corporate bonds for both periods . (3) As of March 31, 2019 and December 31, 2018 , the fair value of state and political subdivisions includes securities in trusts of $1.06 billion and $1.05 billion , respectively. Additional information about these trusts is provided in Note 11 . |
Schedule of Gross Pre-tax Unrealized Losses on Investment Securities | The following tables present the aggregate fair values of AFS and HTM investment securities that have been in a continuous unrealized loss position for less than 12 months , and those that have been in a continuous unrealized loss position for 12 months or longer, as of the dates indicated: As of March 31, 2019 Less than 12 months 12 months or longer Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale: U.S. Treasury and federal agencies: Mortgage-backed securities $ 2,565 $ 4 $ 5,147 $ 105 $ 7,712 $ 109 Total U.S. Treasury and federal agencies 2,565 4 5,147 105 7,712 109 Asset-backed securities: Student loans 10 — 212 — 222 — Credit cards 89 1 497 25 586 26 Collateralized loan obligations 586 3 — — 586 3 Total asset-backed securities 685 4 709 25 1,394 29 Non-U.S. debt securities: Mortgage-backed securities 890 3 111 1 1,001 4 Asset-backed securities 992 6 — — 992 6 Government securities 3,345 14 — — 3,345 14 Other 721 2 189 1 910 3 Total non-U.S. debt securities 5,948 25 300 2 6,248 27 State and political subdivisions — — 254 2 254 2 Collateralized mortgage obligations — — 129 1 129 1 Other U.S. debt securities 116 2 500 5 616 7 Total $ 9,314 $ 35 $ 7,039 $ 140 $ 16,353 $ 175 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 2,210 $ 25 $ 11,036 $ 98 $ 13,246 $ 123 Mortgage-backed securities 357 1 14,205 249 14,562 250 Total U.S. Treasury and federal agencies 2,567 26 25,241 347 27,808 373 Asset-backed securities: Student loans 1,155 7 507 9 1,662 16 Total asset-backed securities 1,155 7 507 9 1,662 16 Non-U.S. debt securities: Mortgage-backed securities 99 2 116 6 215 8 Total non-U.S. debt securities 99 2 116 6 215 8 Collateralized mortgage obligations 101 — 48 2 149 2 Total $ 3,922 $ 35 $ 25,912 $ 364 $ 29,834 $ 399 As of December 31, 2018 Less than 12 months 12 months or longer Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale: U.S. Treasury and federal agencies: Mortgage-backed securities $ 5,058 $ 21 $ 5,089 $ 160 $ 10,147 $ 181 Total U.S. Treasury and federal agencies 5,058 21 5,089 160 10,147 181 Asset-backed securities: Student loans 106 — 218 1 324 1 Credit cards 90 — 493 26 583 26 Collateralized loan obligations 548 2 — — 548 2 Total asset-backed securities 744 2 711 27 1,455 29 Non-U.S. debt securities: Mortgage-backed securities 1,407 4 118 1 1,525 5 Asset-backed securities 1,479 6 — — 1,479 6 Government securities 5,478 45 — — 5,478 45 Other 2,167 12 226 4 2,393 16 Total non-U.S. debt securities 10,531 67 344 5 10,875 72 State and political subdivisions 365 3 244 4 609 7 Collateralized mortgage obligations 181 3 14 — 195 3 Other U.S. debt securities 861 14 484 12 1,345 26 Total $ 17,740 $ 110 $ 6,886 $ 208 $ 24,626 $ 318 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 2,192 $ 45 $ 12,403 $ 154 $ 14,595 $ 199 Mortgage-backed securities 6,502 103 10,648 415 17,150 518 Total U.S. Treasury and federal agencies 8,694 148 23,051 569 31,745 717 Asset-backed securities: Student loans 481 4 536 6 1,017 10 Total asset-backed securities 481 4 536 6 1,017 10 Non-U.S. debt securities: Mortgage-backed securities 184 2 119 7 303 9 Total non-U.S. debt securities 184 2 119 7 303 9 Collateralized mortgage obligations 102 1 51 1 153 2 Total $ 9,461 $ 155 $ 23,757 $ 583 $ 33,218 $ 738 |
Investments Classified by Contractual Maturity Date | The following table presents contractual maturities of debt investment securities by carrying amount as of March 31, 2019 . The maturities of certain ABS, MBS, and CMOs are based on expected principal payments. Actual maturities may differ from these expected maturities since certain borrowers have the right to prepay obligations with or without prepayment penalties. As of March 31, 2019 (In millions) Under 1 Year 1 to 5 Years 6 to 10 Years Over 10 Years Total Available-for-sale: U.S. Treasury and federal agencies: Direct obligations $ 235 $ 806 $ — $ — $ 1,041 Mortgage-backed securities 44 991 2,490 16,518 20,043 Total U.S. Treasury and federal agencies 279 1,797 2,490 16,518 21,084 Asset-backed securities: Student loans 94 160 161 66 481 Credit cards 200 297 89 — 586 Collateralized loan obligations — 418 423 45 886 Total asset-backed securities 294 875 673 111 1,953 Non-U.S. debt securities: Mortgage-backed securities 266 552 171 528 1,517 Asset-backed securities 368 561 446 136 1,511 Government securities 3,178 6,802 2,592 — 12,572 Other 1,141 4,860 554 21 6,576 Total non-U.S. debt securities 4,953 12,775 3,763 685 22,176 State and political subdivisions 180 791 525 444 1,940 Collateralized mortgage obligations — — — 129 129 Other U.S. debt securities 152 1,292 276 — 1,720 Total $ 5,858 $ 17,530 $ 7,727 $ 17,887 $ 49,002 Held-to-maturity: U.S. Treasury and federal agencies: Direct obligations $ 3,225 $ 10,096 $ 11 $ 37 $ 13,369 Mortgage-backed securities 31 236 1,538 20,763 22,568 Total U.S. Treasury and federal agencies 3,256 10,332 1,549 20,800 35,937 Asset-backed securities: Student loans 7 255 383 2,641 3,286 Credit cards — — — — — Other — — — 1 1 Total asset-backed securities 7 255 383 2,642 3,287 Non-U.S. debt securities: Mortgage-backed securities 134 40 7 394 575 Asset-backed securities 98 — — — 98 Government securities 286 113 — — 399 Other 44 — — — 44 Total non-U.S. debt securities 562 153 7 394 1,116 Collateralized mortgage obligations 1 313 14 477 805 Total $ 3,826 $ 11,053 $ 1,953 $ 24,313 $ 41,145 |
Schedule of Credit-Related Loss Activity Recognized in Earnings | The following table presents a roll-forward with respect to net impairment losses that have been recognized in income for the periods indicated: Three Months Ended March 31, (In millions) 2019 2018 Balance, beginning of period $ 78 $ 77 Additions (1) : Other-than-temporary-impairment recognized 1 1 Balance, end of period $ 79 $ 78 (1) |
Loans and Leases (Tables)
Loans and Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Net Loans | The following table presents our recorded investment in loans and leases, by segment, as of the dates indicated: (In millions) March 31, 2019 December 31, 2018 Domestic: Commercial and financial: Loans to investment funds $ 11,935 $ 15,050 Senior secured bank loans 3,516 3,490 Loans to municipalities 966 902 Other 34 37 Commercial real estate 976 874 Total domestic 17,427 20,353 Non-U.S.: Commercial and financial: Loans to investment funds 4,989 4,505 Senior secured bank loans 965 931 Total non-U.S. 5,954 5,436 Total loans and leases 23,381 25,789 Allowance for loan and lease losses (70 ) (67 ) Loans and leases, net of allowance $ 23,311 $ 25,722 |
Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator | The following tables present our recorded investment in each class of loans and leases by credit quality indicator as of the dates indicated: March 31, 2019 Commercial and Financial Commercial Real Estate Total Loans and Leases (In millions) Investment grade (1) $ 17,128 $ 976 $ 18,104 Speculative (2) 5,277 — 5,277 Total $ 22,405 $ 976 $ 23,381 December 31, 2018 Commercial and Financial Commercial Real Estate Total Loans and Leases (In millions) Investment grade (1) $ 19,599 $ 874 $ 20,473 Speculative (2) 5,308 — 5,308 Substandard (3) 8 — 8 Total $ 24,915 $ 874 $ 25,789 (1) Investment-grade loans and leases consist of counterparties with strong credit quality and low expected credit risk and probability of default. Ratings apply to counterparties with a strong capacity to support the timely repayment of any financial commitment. (2) Speculative loans and leases consist of counterparties that face ongoing uncertainties or exposure to business, financial, or economic downturns. However, these counterparties may have financial flexibility or access to financial alternatives, which allow for financial commitments to be met. (3) |
Schedule of Activity in the Allowance for Loan Losses | The following table presents activity in the ALLL for the periods indicated: Three Months Ended March 31, (In millions) 2019 2018 Allowance for loan and lease losses: Beginning balance $ 67 $ 54 Provision for loan and lease losses (1) 4 — Other (2) (1 ) — Ending balance $ 70 $ 54 (1) The provisions and charge-offs for loans and leases were primarily attributable to exposure to purchased senior secured loans to non-investment grade loans. (2) |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes In The Carrying Amount Of Goodwill | The following table presents changes in the carrying amount of goodwill during the periods indicated: (In millions) Investment Servicing (1) Investment Management Total Goodwill: Ending balance December 31, 2017 $ 5,752 $ 270 $ 6,022 Acquisitions (1) 1,512 — 1,512 Foreign currency translation (84 ) (4 ) (88 ) Ending balance December 31, 2018 7,180 266 7,446 Acquisitions (2) 121 — 121 Foreign currency translation (18 ) — (18 ) Ending balance March 31, 2019 $ 7,283 $ 266 $ 7,549 (1) Investment Servicing includes our acquisition of CRD. (2) We have completed the purchase price accounting for the CRD acquisition as of March 31, 2019 . Upon completion of valuation procedures related to the acquired assets and assumed liabilities, primarily the identifiable intangible assets, we recorded measurement period adjustments in the first quarter of 2019 , resulting in an increase in the goodwill of $112 million . |
Schedule of Finite-Lived Intangible Assets | The following table presents changes in the net carrying amount of other intangible assets during the periods indicated: (In millions) Investment Servicing (1) Investment Management Total Other intangible assets: Ending balance December 31, 2017 $ 1,432 $ 181 $ 1,613 Acquisitions (1) 1,007 — 1,007 Amortization (196 ) (30 ) (226 ) Foreign currency translation (25 ) — (25 ) Ending balance December 31, 2018 2,218 151 2,369 Acquisitions (2) (93 ) — (93 ) Amortization (53 ) (7 ) (60 ) Foreign currency translation (8 ) — (8 ) Ending balance March 31, 2019 $ 2,064 $ 144 $ 2,208 (1) Investment Servicing includes our acquisition of CRD. (2) We have completed the purchase price accounting for the CRD acquisition as of March 31, 2019 . Upon completion of valuation procedures related to the acquired assets and assumed liabilities, primarily the identifiable intangible assets, we recorded measurement period adjustments in the first quarter of 2019 , resulting in a decrease in the fair value of intangible assets of $93 million , with a corresponding increase to goodwill. The following table presents the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets by type as of the dates indicated: March 31, 2019 December 31, 2018 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Other intangible assets: Client relationships $ 3,144 $ (1,639 ) $ 1,505 $ 3,262 $ (1,605 ) $ 1,657 Technology 403 (60 ) 343 389 (49 ) 340 Core deposits 673 (356 ) 317 676 (350 ) 326 Other 100 (57 ) 43 103 (57 ) 46 Total $ 4,320 $ (2,112 ) $ 2,208 $ 4,430 $ (2,061 ) $ 2,369 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Assets [Abstract] | |
Components of Other Assets | The following table presents the components of other assets as of the dates indicated: (In millions) March 31, 2019 December 31, 2018 Securities borrowed (1) $ 23,929 $ 19,575 Derivative instruments, net 4,178 5,189 Bank-owned life insurance 3,345 3,323 Investments in joint ventures and other unconsolidated entities (2) 2,668 2,882 Receivable for securities settlement 969 531 Collateral, net 903 1,354 Right-of-use assets (3) 899 — Accounts receivable 760 343 Prepaid expenses 520 493 Income taxes receivable 100 129 Deferred tax assets, net of valuation allowance (4) 100 113 Deposits with clearing organizations 58 58 Other 470 414 Total $ 38,899 $ 34,404 (1) Refer to Note 8 , for further information on the impact of collateral on our financial statement presentation of securities borrowing and securities lending transactions. (2) Includes certain equity securities held at fair value through profit and loss that were transferred from AFS as part of our adoption of ASU 2016-01. (3) We adopted ASU 2016-02, Leases (Topic 842) and relevant amendments, effective January 1, 2019. Refer to Note 1 for further information on this new accounting standard. (4) |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments including those entered into for trading and asset-and-liability management activities as of the dates indicated: (In millions) March 31, 2019 December 31, 2018 Derivatives not designated as hedging instruments: Interest rate contracts: Futures $ 4,387 $ 2,348 Foreign exchange contracts: Forward, swap and spot 2,284,676 2,238,819 Options purchased 797 578 Options written 505 576 Futures 414 49 Other: Stable value contracts (1) 26,991 26,634 Deferred value awards (2) 559 434 Derivatives designated as hedging instruments: Interest rate contracts: Swap agreements 10,596 10,596 Foreign exchange contracts: Forward and swap 3,050 3,412 (1) The notional value of the stable value contracts generally represents our maximum exposure. However, exposure to various stable value contracts is contractually limited to substantially lower amounts than the notional values, which represent the total assets of the stable value funds. (2) |
Schedule of Derivative Assets at Fair Value | The following tables present the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 8 . March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 (In millions) Derivative Assets (1) Derivative Liabilities (2) Derivatives not designated as hedging instruments: Foreign exchange contracts $ 11,123 $ 16,369 $ 11,240 $ 16,434 Other derivative contracts — — 228 214 Total $ 11,123 $ 16,369 $ 11,468 $ 16,648 Derivatives designated as hedging instruments: Foreign exchange contracts $ 21 $ 17 $ 60 $ 88 Interest rate contracts — 13 69 71 Total $ 21 $ 30 $ 129 $ 159 (1) Derivative assets are included within other assets in our consolidated statement of condition. (2) |
Schedule of Derivative Liabilities at Fair Value | The following tables present the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 8 . March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 (In millions) Derivative Assets (1) Derivative Liabilities (2) Derivatives not designated as hedging instruments: Foreign exchange contracts $ 11,123 $ 16,369 $ 11,240 $ 16,434 Other derivative contracts — — 228 214 Total $ 11,123 $ 16,369 $ 11,468 $ 16,648 Derivatives designated as hedging instruments: Foreign exchange contracts $ 21 $ 17 $ 60 $ 88 Interest rate contracts — 13 69 71 Total $ 21 $ 30 $ 129 $ 159 (1) Derivative assets are included within other assets in our consolidated statement of condition. (2) |
Impact of Derivative Financial Instruments On Statement of Income | The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated: Three Months Ended March 31, 2019 2018 (In millions) Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income Derivatives not designated as hedging instruments: Foreign exchange contracts Foreign exchange trading services revenue $ 160 $ 184 Foreign exchange contracts Interest expense (1) (39 ) (15 ) Interest rate contracts Foreign exchange trading services revenue (1 ) (2 ) Other derivative contracts Foreign exchange trading services revenue — 1 Other derivative contracts Compensation and employee benefits (74 ) (65 ) Total $ 46 $ 103 (1) In the first quarter of 2018, approximately $15 million Three Months Ended March 31, Three Months Ended March 31, 2019 2018 2019 2018 (In millions) Location of Gain (Loss) on Derivative in Consolidated Statement of Income Amount of Gain Hedged Item in Fair Value Hedging Relationship Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income Amount of Gain Derivatives designated as fair value hedges: Foreign exchange contracts Processing fees and other revenue $ — $ (13 ) Investment securities Processing fees and other revenue $ — $ 13 Foreign exchange contracts Processing fees and other revenue — 248 Foreign exchange deposit Processing fees and other revenue — — (248 ) Interest rate contracts Net interest income 106 21 Available-for-sale securities (1) Net interest income (102 ) — (21 ) Interest rate contracts Net interest income (3 ) (167 ) Long-term debt Net interest income 4 — 156 Total $ 103 $ 89 $ (98 ) $ (100 ) (1) In the first quarter of 2019 , $2 million of net unrealized losses on AFS investment securities designated in fair value hedges was recognized in OCI compared to $18 million of net unrealized gains in the same period in 2018 . Three Months Ended March 31, Three Months Ended March 31, 2019 2018 2019 2018 (In millions) Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Derivatives designated as cash flow hedges: Interest rate contracts $ 10 $ (20 ) Net interest income $ (2 ) $ 1 Foreign exchange contracts 27 (88 ) Net interest income 7 7 Total derivatives designated as cash flow hedges $ 37 $ (108 ) $ 5 $ 8 Derivatives designated as net investment hedges: Foreign exchange contracts $ 20 $ (36 ) Gains (losses) related to investment securities, net $ — $ — Total derivatives designated as net investment hedges $ 20 $ (36 ) $ — $ — Total $ 57 $ (144 ) $ 5 $ 8 |
Schedule of Outstanding Hedges: (Notional Amount) | The following table shows the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships: March 31, 2019 Hedged Items Currently Designated Hedged Items No Longer Designated (1) (In millions) Carrying Amount of Assets and Liabilities (2) Cumulative Hedge Accounting Basis Adjustments Carrying Amount of Assets and Liabilities Cumulative Hedge Accounting Basis Adjustments Long-term debt $ 8,271 $ (23 ) $ 1,198 $ (17 ) Available-for-sale securities 1,553 76 50 1 Total $ 9,824 $ 53 $ 1,248 $ (16 ) December 31, 2018 Hedged Items Currently Designated Hedged Items No Longer Designated (1) (In millions) Carrying Amount of Assets and Liabilities (2) Cumulative Hedge Accounting Basis Adjustments Carrying Amount of Assets and Liabilities Cumulative Hedge Accounting Basis Adjustments Long-term debt $ 8,270 $ (137 ) $ 1,197 $ (20 ) Available-for-sale securities 1,496 72 50 1 Total $ 9,766 $ (65 ) $ 1,247 $ (19 ) (1) Represents hedged items no longer designated in qualifying fair value hedging relationships for which an associated basis adjustment exists at the balance sheet date. (2) Does not include the carrying amount of hedged items when only foreign currency risk is the designated hedged risk. The carrying amount excluded for investment securities was zero and $458 million for March 31, 2019 and December 31, 2018 , respectively. |
Offsetting Arrangements (Tables
Offsetting Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Offsetting [Abstract] | |
Offsetting Assets | The following tables present information about the offsetting of assets related to derivative contracts and secured financing transactions, as of the dates indicated: Assets: March 31, 2019 Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 11,144 $ (6,327 ) $ 4,817 $ — $ 4,817 Cash collateral and securities netting NA (639 ) (639 ) (468 ) (1,107 ) Total derivatives 11,144 (6,966 ) 4,178 (468 ) 3,710 Other financial instruments: Resale agreements and securities borrowing (6) 103,293 (77,842 ) 25,451 (24,487 ) 964 Total derivatives and other financial instruments $ 114,437 $ (84,808 ) $ 29,629 $ (24,955 ) $ 4,674 Assets: December 31, 2018 Gross Amounts of Recognized Assets (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Assets Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 16,386 $ (10,223 ) $ 6,163 $ — $ 6,163 Interest rate contracts (7) 13 — 13 — 13 Cash collateral and securities netting NA (987 ) (987 ) (220 ) (1,207 ) Total derivatives 16,399 (11,210 ) 5,189 (220 ) 4,969 Other financial instruments: Resale agreements and securities borrowing (6) 116,143 (91,889 ) 24,254 (22,872 ) 1,382 Total derivatives and other financial instruments $ 132,542 $ (103,099 ) $ 29,443 $ (23,092 ) $ 6,351 (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Includes securities in connection with our securities borrowing transactions. (5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. (6) Included in the $25.45 billion as of March 31, 2019 were $1.52 billion of resale agreements and $23.93 billion of collateral provided related to securities borrowing. Included in the $24.25 billion as of December 31, 2018 were $4.68 billion of resale agreements and $19.58 billion of collateral provided related to securities borrowing. Resale agreements and collateral provided related to securities borrowing were recorded in securities purchased under resale agreements and other assets, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions. (7) Variation margin payments presented as settlements rather than collateral. NA Not applicable |
Offsetting Liabilities | The following tables present information about the offsetting of liabilities related to derivative contracts and secured financing transactions, as of the dates indicated: Liabilities: March 31, 2019 Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 11,300 $ (6,327 ) $ 4,973 $ — $ 4,973 Interest rate contracts (6) 69 — 69 — 69 Other derivative contracts 228 — 228 — 228 Cash collateral and securities netting NA (1,192 ) (1,192 ) (633 ) (1,825 ) Total derivatives 11,597 (7,519 ) 4,078 (633 ) 3,445 Other financial instruments: Repurchase agreements and securities lending (7) 93,272 (77,842 ) 15,430 (14,103 ) 1,327 Total derivatives and other financial instruments $ 104,869 $ (85,361 ) $ 19,508 $ (14,736 ) $ 4,772 Liabilities: December 31, 2018 Gross Amounts of Recognized Liabilities (1)(2) Gross Amounts Offset in Statement of Condition (3) Net Amounts of Liabilities Presented in Statement of Condition Gross Amounts Not Offset in Statement of Condition (In millions) Cash and Securities Received (4) Net Amount (5) Derivatives: Foreign exchange contracts $ 16,522 $ (10,223 ) $ 6,299 $ — $ 6,299 Interest rate contracts (6) 71 — 71 — 71 Other derivative contracts 214 — 214 — 214 Cash collateral and securities netting NA (1,341 ) (1,341 ) (215 ) (1,556 ) Total derivatives 16,807 (11,564 ) 5,243 (215 ) 5,028 Other financial instruments: Repurchase agreements and securities lending (7) 104,494 (91,889 ) 12,605 (11,543 ) 1,062 Total derivatives and other financial instruments $ 121,301 $ (103,453 ) $ 17,848 $ (11,758 ) $ 6,090 (1) Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement. (2) Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments. (3) Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition. (4) Includes securities provided in connection with our securities lending transactions. (5) Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements. (6) Variation margin payments presented as settlements rather than collateral. (7) Included in the $15.43 billion as of March 31, 2019 were $1.42 billion of repurchase agreements and $14.01 billion of collateral received related to securities lending transactions. Included in the $12.60 billion as of December 31, 2018 were $1.08 billion of repurchase agreements and $11.52 billion of collateral received related to securities lending transactions. Repurchase agreements and collateral received related to securities lending were recorded in securities sold under repurchase agreements and accrued expenses and other liabilit ies, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions . NA |
Securities Sold and Securities Loaned Under Repurchase Agreements | The following table summarizes our repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated: As of March 31, 2019 As of December 31, 2018 (In millions) Overnight and Continuous Up to 30 Days Total Overnight and Continuous Up to 30 Days Total Repurchase agreements: U.S. Treasury and agency securities $ 74,346 $ — $ 74,346 $ 88,904 $ — $ 88,904 Total 74,346 — 74,346 88,904 — 88,904 Securities lending transactions: US Treasury and agency securities 136 — 136 249 — 249 Corporate debt securities 433 — 433 278 — 278 Equity securities 9,733 124 9,857 6,426 137 6,563 Other (1) 8,500 — 8,500 8,500 — 8,500 Total 18,802 124 18,926 15,453 137 15,590 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 93,148 $ 124 $ 93,272 $ 104,357 $ 137 $ 104,494 (1) |
Commitments and Guarantees (Tab
Commitments and Guarantees (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantor Obligations | The following table presents the aggregate gross contractual amounts of our off-balance sheet commitments and off-balance sheet guarantees as of the dates indicated: (In millions) March 31, 2019 December 31, 2018 Commitments: Unfunded credit facilities (1) $ 29,951 $ 28,951 Guarantees (2) : Indemnified securities financing $ 387,314 $ 342,337 Standby letters of credit 2,973 2,985 (1) As of March 31, 2019, approximately 75% of our unfunded commitments to extend credit expire within one year . (2) |
Schedule of Repurchase Agreements | The following table summarizes the aggregate fair values of indemnified securities financing and related collateral, as well as collateral invested in indemnified repurchase agreements, as of the dates indicated: (In millions) March 31, 2019 December 31, 2018 Fair value of indemnified securities financing $ 387,314 $ 342,337 Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing 405,299 357,893 Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements 47,560 42,610 Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements 50,351 45,064 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Preferred Shares | The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of March 31, 2019 : Issuance Date Depositary Shares Issued Ownership Interest Per Depositary Share Liquidation Preference Per Share Liquidation Preference Per Depositary Share Net Proceeds of Offering (In millions) Redemption Date (1) Preferred Stock (2) : Series C August 2012 20,000,000 1/4,000th $ 100,000 $ 25 $ 488 September 15, 2017 Series D February 2014 30,000,000 1/4,000th 100,000 25 742 March 15, 2024 Series E November 2014 30,000,000 1/4,000th 100,000 25 728 December 15, 2019 Series F May 2015 750,000 1/100th 100,000 1,000 742 September 15, 2020 Series G April 2016 20,000,000 1/4,000th 100,000 25 493 March 15, 2026 Series H September 2018 500,000 1/100th 100,000 1,000 494 December 15, 2023 (1) On the redemption date, or any dividend declaration date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. (2) |
Dividends Declared | The table below presents the dividends declared on common stock for the periods indicated: Three Months Ended March 31, 2019 2018 Dividends Declared per Share Total (In millions) Dividends Declared per Share Total (In millions) Common Stock $ 0.47 $ 177 $ 0.42 $ 154 Three Months Ended March 31, 2019 2018 (Dollars in millions, except per share amounts) Dividends Declared per Share Dividends Declared per Depositary Share Total (1) Dividends Declared per Share Dividends Declared per Depositary Share Total Preferred Stock: Series C $ 1,313 $ 0.33 $ 6 $ 1,313 $ 0.33 $ 6 Series D 1,475 0.37 11 1,475 0.37 11 Series E 1,500 0.38 11 1,500 0.38 11 Series F 2,625 26.25 20 2,625 26.25 20 Series G 1,338 0.33 7 1,338 0.33 7 Series H — — — — — — Total $ 55 $ 55 (1) |
Stock Repurchase Program | The table below presents the activity under our common stock purchase program during the period indicated: Three Months Ended March 31, 2019 Shares Acquired Average Cost per Share Total Acquired 2018 Program 4.2 $ 70.93 $ 300 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the after-tax components of AOCI as of the dates indicated: (In millions) March 31, 2019 December 31, 2018 Net unrealized (losses) on cash flow hedges $ (71 ) $ (89 ) Net unrealized gains (losses) on available-for-sale securities portfolio 114 (193 ) Net unrealized gains related to reclassified available-for-sale securities 58 58 Net unrealized gains (losses) on available-for-sale securities 172 (135 ) Net unrealized (losses) on available-for-sale securities designated in fair value hedges (56 ) (40 ) Net unrealized gains on hedges of net investments in non-U.S. subsidiaries 36 16 Other-than-temporary impairment on held-to-maturity securities related to factors other than credit (3 ) (2 ) Net unrealized (losses) on retirement plans (179 ) (143 ) Foreign currency translation (1,079 ) (963 ) Total $ (1,180 ) $ (1,356 ) The following table presents changes in AOCI by component, net of related taxes, for the periods indicated: Three Months Ended March 31, 2019 (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries Other-Than-Temporary Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2018 $ (89 ) $ (175 ) $ 16 $ (2 ) $ (143 ) $ (963 ) $ (1,356 ) Other comprehensive income (loss) before reclassifications 24 270 23 1 — (49 ) 269 Reclassification of certain tax effects (1) (6 ) 21 (3 ) (1 ) (28 ) (67 ) (84 ) Amounts reclassified into (out of) earnings — — — (1 ) (8 ) — (9 ) Other comprehensive income (loss) 18 291 20 (1 ) (36 ) (116 ) 176 Balance as of March 31, 2019 $ (71 ) $ 116 $ 36 $ (3 ) $ (179 ) $ (1,079 ) $ (1,180 ) Three Months Ended March 31, 2018 (In millions) Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Available-for-Sale Securities Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries Other-Than-Temporary Impairment on Held-to-Maturity Securities Net Unrealized Losses on Retirement Plans Foreign Currency Translation Total Balance as of December 31, 2017 $ (56 ) $ 103 $ (65 ) $ (6 ) $ (170 ) $ (815 ) $ (1,009 ) Other comprehensive income (loss) before reclassifications (97 ) (130 ) (36 ) 1 — 187 (75 ) Amounts reclassified into (out of) earnings — (1 ) — (1 ) 12 — 10 Other comprehensive income (loss) (97 ) (131 ) (36 ) — 12 187 (65 ) Balance as of March 31, 2018 $ (153 ) $ (28 ) $ (101 ) $ (6 ) $ (158 ) $ (628 ) $ (1,074 ) (1) Represents the reclassification from accumulated other comprehensive income into retained earnings as a result of our adoption of ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in the first quarter of 2019. |
Schedule of Reclassifications Out of AOCI | The following table presents after-tax reclassifications into earnings for the periods indicated: Three Months Ended March 31, 2019 2018 (In millions) Amounts Reclassified into Affected Line Item in Consolidated Statement of Income Available-for-sale securities: Net realized gains (losses) from sales of available-for-sale securities, net of related taxes of zero and ($1), respectively $ — $ (1 ) Net gains (losses) from sales of available-for-sale securities Held-to-maturity securities: Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of zero and zero, respectively (1 ) (1 ) Losses reclassified (from) to other comprehensive income Retirement plans: Amortization of actuarial losses, net of related taxes of ($4) and $3, respectively (8 ) 12 Compensation and employee benefits expenses Total reclassifications out of Accumulated other comprehensive loss $ (9 ) $ 10 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Regulatory Capital | The following table presents the regulatory capital structure, total RWA, related regulatory capital ratios and the minimum required regulatory capital ratios for us and State Street Bank as of the dates indicated. As a result of changes in the methodologies used to calculate our regulatory capital ratios from period to period as the provisions of the Basel III final rule were phased in, the ratios presented in the table for each period-end are not directly comparable. Refer to the footnotes following the table. State Street State Street Bank (Dollars in millions) Basel III Advanced Approaches March 31, 2019 Basel III Standardized Approach March 31, 2019 Basel III Advanced Approaches December 31, 2018 (1) Basel III Standardized Approach December 31, 2018 (1) Basel III Advanced Approaches March 31, 2019 Basel III Standardized Approach March 31, 2019 Basel III Advanced Approaches December 31, 2018 (1) Basel III Standardized Approach December 31, 2018 (1) Common shareholders' equity: Common stock and related surplus $ 10,586 $ 10,586 $ 10,565 $ 10,565 $ 12,894 $ 12,894 $ 12,894 $ 12,894 Retained earnings 20,911 20,911 20,606 20,606 14,273 14,273 14,261 14,261 Accumulated other comprehensive income (loss) (1,168 ) (1,168 ) (1,332 ) (1,332 ) (954 ) (954 ) (1,112 ) (1,112 ) Treasury stock, at cost (8,969 ) (8,969 ) (8,715 ) (8,715 ) — — — — Total 21,360 21,360 21,124 21,124 26,213 26,213 26,043 26,043 Regulatory capital adjustments: Goodwill and other intangible assets, net of associated deferred tax liabilities (9,294 ) (9,294 ) (9,350 ) (9,350 ) (9,016 ) (9,016 ) (9,073 ) (9,073 ) Other adjustments (2) (167 ) (167 ) (194 ) (194 ) (1 ) (1 ) (29 ) (29 ) Common equity tier 1 capital 11,899 11,899 11,580 11,580 17,196 17,196 16,941 16,941 Preferred stock 3,690 3,690 3,690 3,690 — — — — Tier 1 capital 15,589 15,589 15,270 15,270 17,196 17,196 16,941 16,941 Qualifying subordinated long-term debt 787 787 778 778 785 785 776 776 Allowance for loan and lease losses and other 10 84 14 83 6 83 11 83 Total capital $ 16,386 $ 16,460 $ 16,062 $ 16,131 $ 17,987 $ 18,064 $ 17,728 $ 17,800 Risk-weighted assets: Credit risk (3) $ 49,451 $ 102,284 $ 47,738 $ 97,303 $ 47,106 $ 99,673 $ 45,565 $ 94,776 Operational risk (4) 47,213 NA 46,060 NA 44,416 NA 44,494 NA Market risk 1,359 1,359 1,517 1,517 1,359 1,359 1,517 1,517 Total risk-weighted assets $ 98,023 $ 103,643 $ 95,315 $ 98,820 $ 92,881 $ 101,032 $ 91,576 $ 96,293 Adjusted quarterly average assets $ 210,099 $ 210,099 $ 211,924 $ 211,924 $ 207,417 $ 207,417 $ 209,413 $ 209,413 Capital Ratios: 2019 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge (5) 2018 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge (6) Common equity tier 1 capital 8.5 % 7.5 % 12.1 % 11.5 % 12.1 % 11.7 % 18.5 % 17.0 % 18.5 % 17.6 % Tier 1 capital 10.0 9.0 15.9 15.0 16.0 15.5 18.5 17.0 18.5 17.6 Total capital 12.0 11.0 16.7 15.9 16.9 16.3 19.4 17.9 19.4 18.5 (1) Under the applicable bank regulatory rules, we are not required to and, accordingly, did not revise previously-filed reported capital metrics and ratios following the change in accounting for LIHTC. (2) Other adjustments within CET1 primarily include the overfunded portion of the firm’s defined benefit pension plan obligation net of associated deferred tax liabilities, disallowed deferred tax assets, and other required credit risk based deductions. (3) Includes a CVA which reflects the risk of potential fair value adjustments for credit risk reflected in our valuation of OTC derivative contracts. We used a simple CVA approach in conformity with the Basel III advanced approaches. (4) Under the current advanced approaches rules and regulatory guidance concerning operational risk models, RWA attributable to operational risk can vary substantially from period-to-period, without direct correlation to the effects of a particular loss event on our results of operations and financial condition and impacting dates and periods that may differ from the dates and periods as of and during which the loss event is reflected in our financial statements, with the timing and categorization dependent on the processes for model updates and, if applicable, model revalidation and regulatory review and related supervisory processes. An individual loss event can have a significant effect on the output of our operational RWA under the advanced approaches depending on the severity of the loss event and its categorization among the seven Basel-defined UOMs. (5) Minimum requirements were phased in with full implementation beginning on January 1, 2019; minimum requirements listed are as of March 31, 2019 . (6) Minimum requirements were phased in with full implementation beginning on January 1, 2019; minimum requirements listed are as of December 31, 2018 . NA |
Net Interest Income (Tables)
Net Interest Income (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Components of Interest Revenue and Interest Expense | The following table presents the components of interest income and interest expense, and related NII, for the periods indicated: Three Months Ended March 31, (In millions) 2019 2018 (1) Interest income: Interest-bearing deposits with banks $ 119 $ 82 Investment securities: U.S. Treasury and federal agencies 369 255 State and political subdivisions 12 52 Other investments 122 159 Securities purchased under resale agreements 98 77 Loans and leases 198 155 Other interest-earning assets 109 77 Total interest income 1,027 857 Interest expense: Interest-bearing deposits 171 63 Securities sold under repurchase agreements 12 — Other short-term borrowings 4 3 Long-term debt 106 97 Other interest-bearing liabilities 61 51 Total interest expense 354 214 Net interest income $ 673 $ 643 (1) In the first quarter of 2018, approximately $15 million |
Expenses (Tables)
Expenses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Expenses [Abstract] | |
Schedule of Expenses | The following table presents the components of other expenses for the periods indicated: Three Months Ended March 31, (In millions) 2019 2018 Professional services $ 80 $ 79 Sales advertising public relations 27 26 Insurance 22 32 Regulatory fees and assessments 18 27 Bank operations 11 17 Other 117 99 Total other expenses $ 275 $ 280 |
Restructuring and Related Costs | The following table presents aggregate activity for the periods indicated: (In millions) Employee Real Estate Asset and Other Write-offs Total Accrual balance at December 31, 2017 $ 166 $ 32 $ 3 $ 201 Accruals for Beacon — — — — Payments and other adjustments (22 ) (4 ) — (26 ) Accrual balance at March 31, 2018 $ 144 $ 28 $ 3 $ 175 Accrual balance at December 31, 2018 $ 303 $ 37 $ 1 341 Accruals for Beacon (4 ) — — (4 ) Payments and other adjustments (53 ) (25 ) — (78 ) Accrual balance at March 31, 2019 $ 246 $ 12 $ 1 $ 259 |
Occupancy Expense and Informa_2
Occupancy Expense and Information Systems and Communications Expense (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of Lease Costs and Other Information | The following table presents details related to remaining lease terms and discount rate for the quarter ended March 31, 2019 : Three Months Ended March 31, 2019 Weighted-average remaining lease term (in years): Finance leases 4.5 Operating leases 7.8 Weighted-average discount rate: Finance leases 7 % Operating leases 3 quarter ended March 31, 2019 : (In millions) Three Months Ended March 31, 2019 Finance lease: Amortization of right-of-use assets $ 5 Interest on lease liabilities 3 Total finance lease expense 8 Sublease income (2 ) Net finance lease expense 6 Operating lease: Operating lease expense 44 Sublease income (1 ) Net operating lease expense 43 Net lease expense $ 49 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 3 Operating cash flows from operating leases 51 Financing cash flows from finance leases 31 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 29 Finance leases — |
Schedule of Future MInimum Lease Payments, Operating Leases | The following table presents future minimum lease payments under non-cancellable leases as of March 31, 2019 : (In millions) Operating Leases Finance Leases Total 2019 (excluding the first quarter of 2019) $ 144 $ 31 $ 175 2020 185 42 227 2021 174 42 216 2022 151 42 193 2023 131 30 161 Thereafter 400 — 400 Total future minimum lease payments 1,185 187 1,372 Less imputed interest (125 ) (27 ) (152 ) Total $ 1,060 $ 160 $ 1,220 |
Schedule of Future MInimum Lease Payments, Finance Leases | The following table presents future minimum lease payments under non-cancellable leases as of March 31, 2019 : (In millions) Operating Leases Finance Leases Total 2019 (excluding the first quarter of 2019) $ 144 $ 31 $ 175 2020 185 42 227 2021 174 42 216 2022 151 42 193 2023 131 30 161 Thereafter 400 — 400 Total future minimum lease payments 1,185 187 1,372 Less imputed interest (125 ) (27 ) (152 ) Total $ 1,060 $ 160 $ 1,220 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per common share for the periods indicated: Three Months Ended March 31, (Dollars in millions, except per share amounts) 2019 2018 Net income $ 508 $ 659 Less: Preferred stock dividends (55 ) (55 ) Dividends and undistributed earnings allocated to participating securities (1) (1 ) (1 ) Net income available to common shareholders $ 452 $ 603 Average common shares outstanding (In thousands): Basic average common shares 377,915 367,439 Effect of dilutive securities: equity-based awards 3,788 5,180 Diluted average common shares 381,703 372,619 Anti-dilutive securities (2) 1,951 — Earnings per common share: Basic $ 1.20 $ 1.64 Diluted (3) 1.18 1.62 (1) Represents the portion of net income available to common equity allocated to participating securities, composed of unvested and fully vested SERP (Supplemental executive retirement plans) shares and fully vested deferred director stock awards, which are equity-based awards that contain non-forfeitable rights to dividends, and are considered to participate with the common stock in undistributed earnings. (2) Represents equity-based awards outstanding but not included in the computation of diluted average common shares, because their effect was anti-dilutive. Additional information about equity-based awards is provided on pages 169 to 171 in Note 18 to the consolidated financial statements in our 2018 Form 10-K. (3) |
Line of Business Information (T
Line of Business Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Line of Business Results | The following is a summary of our line of business results for the periods indicated. The "Other" columns represent costs incurred that are not allocated to a specific line of business, including certain severance and restructuring costs, acquisition costs and certain provisions for legal contingencies. Three Months Ended March 31, Investment Investment Other Total (Dollars in millions) 2019 2018 2019 2018 2019 2018 2019 2018 Servicing fees $ 1,251 $ 1,421 $ — $ — $ — $ — $ 1,251 $ 1,421 Management fees — — 420 472 — — 420 472 Foreign exchange trading services 246 274 34 30 — — 280 304 Securities finance 117 141 1 — — — 118 141 Processing fees and other 180 77 11 — — — 191 77 Total fee revenue 1,794 1,913 466 502 — — 2,260 2,415 Net interest income 679 648 (6 ) (5 ) — — 673 643 Gains (losses) related to investment securities, net (1 ) (2 ) — — — — (1 ) (2 ) Total revenue 2,472 2,559 460 497 — — 2,932 3,056 Total expenses 1,864 1,870 406 398 23 — 2,293 2,268 Income before income tax expense $ 604 $ 689 $ 54 $ 99 $ (23 ) $ — $ 635 $ 788 Pre-tax margin 24 % 27 % 12 % 20 % 22 % 26 % |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | In the following table, revenue is disaggregated by our two lines of business and by revenue stream for which the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended March 31, 2019 Investment Servicing Investment Management Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2019 Servicing fees $ 1,251 $ — $ 1,251 $ — $ — $ — $ 1,251 Management fees — — — 420 — 420 420 Foreign exchange trading services 86 160 246 34 — 34 280 Securities finance 70 47 117 — 1 1 118 Processing fees and other 116 64 180 — 11 11 191 Total fee revenue 1,523 271 1,794 454 12 466 2,260 Net interest income — 679 679 — (6 ) (6 ) 673 Gains (losses) related to investment securities, net — (1 ) (1 ) — — — (1 ) Total revenue $ 1,523 $ 949 $ 2,472 $ 454 $ 6 $ 460 $ 2,932 Three Months Ended March 31, 2018 Investment Servicing Investment Management Total (Dollars in millions) Topic 606 revenue All other revenue Total Topic 606 revenue All other revenue Total 2018 Servicing fees $ 1,421 $ — $ 1,421 $ — $ — $ — $ 1,421 Management fees — — — 472 — 472 472 Foreign exchange trading services 95 179 274 30 — 30 304 Securities finance 77 64 141 — — — 141 Processing fees and other (1) 19 58 77 — — — 77 Total fee revenue 1,612 301 1,913 502 — 502 2,415 Net interest income (1) — 648 648 — (5 ) (5 ) 643 Gains (losses) related to investment securities, net — (2 ) (2 ) — — — (2 ) Total revenue $ 1,612 $ 947 $ 2,559 $ 502 $ (5 ) $ 497 $ 3,056 1) In the first quarter of 2018, approximately $15 million |
Non-U.S. Activities (Tables)
Non-U.S. Activities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segments, Geographical Areas [Abstract] | |
Schedule of Results from Non-U.S. Operations | The following table presents our U.S. and non-U.S. financial results for the periods indicated: Three Months Ended March 31, 2019 2018 (In millions) Non-U.S. (1) U.S. Total Non-U.S. (1) U.S. Total Total revenue $ 1,231 $ 1,701 $ 2,932 $ 1,321 $ 1,735 $ 3,056 Income before income tax expense 249 386 635 395 393 788 (1) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - New Accounting Pronouncement (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Mar. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease liabilities | $ 1,220 | |
Stranded tax effects reclassified | $ (84) | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use assets | $ 910 | |
Lease liabilities | 1,060 | |
Accounting Standards Update 2018-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Stranded tax effects reclassified | $ 84 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Change in Accounting Policy (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jan. 01, 2018 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Other assets | $ 38,899 | $ 34,404 | ||
Total assets | 228,332 | 244,596 | ||
Accrued expenses and other liabilities | 27,274 | 24,232 | ||
Retained earnings | 20,911 | 20,553 | ||
Total liabilities and stockholders' equity | 228,332 | 244,596 | ||
Income Statement Related Disclosures [Abstract] | ||||
Processing fees and other | 191 | $ 77 | ||
Total fee revenue | 2,260 | 2,415 | ||
Income tax expense | 127 | 129 | ||
Net income | $ 508 | $ 659 | ||
Basic (in USD per share) | $ 1.20 | $ 1.64 | ||
Diluted (in USD per share) | $ 1.18 | $ 1.62 | ||
As Originally Reported | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Other assets | 34,434 | |||
Total assets | 244,626 | |||
Accrued expenses and other liabilities | 24,209 | |||
Retained earnings | 20,606 | |||
Total liabilities and stockholders' equity | 244,626 | |||
Income Statement Related Disclosures [Abstract] | ||||
Processing fees and other | $ 169 | $ 52 | ||
Total fee revenue | 2,238 | 2,390 | ||
Income tax expense | 105 | 102 | ||
Net income | $ 508 | $ 661 | ||
Basic (in USD per share) | $ 1.20 | $ 1.65 | ||
Diluted (in USD per share) | $ 1.18 | $ 1.62 | ||
Effect of Change | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Retained earnings | $ (47) | |||
Change from equity method of accounting to proportional amortization method for investments in LIHTC | Effect of Change | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Other assets | (30) | |||
Total assets | (30) | |||
Accrued expenses and other liabilities | 23 | |||
Retained earnings | (53) | |||
Total liabilities and stockholders' equity | $ (30) | |||
Income Statement Related Disclosures [Abstract] | ||||
Processing fees and other | $ 22 | $ 25 | ||
Total fee revenue | 22 | 25 | ||
Income tax expense | 22 | 27 | ||
Net income | $ 0 | $ (2) | ||
Basic (in USD per share) | $ 0 | $ (0.01) | ||
Diluted (in USD per share) | $ 0 | $ 0 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | $ 856 | $ 860 |
Investment securities available-for-sale | 49,002 | 45,148 |
Derivative asset, collateral, cash offset | 639 | 987 |
Derivative liability, collateral, cash offset | 1,192 | 1,341 |
Non-US debt securities, covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,050 | 1,300 |
Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,330 | 1,330 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 856 | 860 |
Investment securities available-for-sale | 49,002 | 45,148 |
Derivative asset, Impact of Netting | (6,966) | (11,210) |
Derivative assets | 4,178 | 5,189 |
Other | 442 | 395 |
Other assets - impact of netting | 0 | 0 |
Total, derivative asset | 54,478 | 51,592 |
Derivative liability, Impact of Netting | (7,519) | (11,564) |
Derivative liabilities | 4,078 | 5,243 |
Total liabilities carried at fair value | 4,078 | 5,243 |
Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, Impact of Netting | (6,966) | (11,210) |
Derivative assets | 4,178 | 5,176 |
Derivative liability, Impact of Netting | (7,519) | (11,564) |
Derivative liabilities | 3,781 | 4,958 |
Recurring | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, Impact of Netting | 0 | |
Derivative assets | 13 | |
Derivative liability, Impact of Netting | 0 | 0 |
Derivative liabilities | 69 | 71 |
Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability, Impact of Netting | 0 | 0 |
Derivative liabilities | 228 | 214 |
Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 34 | 34 |
Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 324 | 325 |
Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 498 | 501 |
Investment securities available-for-sale | 1,720 | 1,658 |
Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,041 | 1,039 |
Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 20,043 | 15,968 |
Recurring | Total U.S. Treasury and federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 21,084 | 17,007 |
Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 481 | 541 |
Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 586 | 583 |
Recurring | Asset-backed securities, collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 886 | 593 |
Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,953 | 1,717 |
Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,517 | 1,682 |
Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,511 | 1,574 |
Recurring | Non-U.S. debt securities, government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 12,572 | 12,793 |
Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 6,576 | 6,602 |
Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 22,176 | 22,651 |
Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,940 | 1,918 |
Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 129 | 197 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 182 | 180 |
Investment securities available-for-sale | 1,041 | 1,039 |
Derivative asset | 0 | 13 |
Other | 0 | 0 |
Total, derivative asset | 1,223 | 1,232 |
Derivative liability | 17 | 0 |
Total liabilities carried at fair value | 17 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 13 | |
Derivative liability | 17 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 34 | 34 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 148 | 146 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,041 | 1,039 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Total U.S. Treasury and federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,041 | 1,039 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Asset-backed securities, collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Market Prices in Active Markets (Level 1) | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 674 | 680 |
Investment securities available-for-sale | 46,621 | 42,825 |
Derivative asset | 11,140 | 16,382 |
Other | 442 | 395 |
Total, derivative asset | 58,877 | 60,282 |
Derivative liability | 11,577 | 16,803 |
Total liabilities carried at fair value | 11,577 | 16,803 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 11,140 | 16,382 |
Derivative liability | 11,297 | 16,518 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Derivative liability | 52 | 71 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 228 | 214 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 176 | 179 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 498 | 501 |
Investment securities available-for-sale | 1,720 | 1,658 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 20,043 | 15,968 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Total U.S. Treasury and federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 20,043 | 15,968 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 481 | 541 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 586 | 583 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Asset-backed securities, collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 218 | 0 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,285 | 1,124 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,517 | 1,682 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 884 | 943 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 12,572 | 12,793 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 6,531 | 6,544 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 21,504 | 21,962 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,940 | 1,918 |
Pricing Methods with Significant Observable Market Inputs (Level 2) | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 129 | 195 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Investment securities available-for-sale | 1,340 | 1,284 |
Derivative asset | 4 | 4 |
Other | 0 | 0 |
Total, derivative asset | 1,344 | 1,288 |
Derivative liability | 3 | 4 |
Total liabilities carried at fair value | 3 | 4 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 4 | 4 |
Derivative liability | 3 | 4 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Derivative liability | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Other derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading account assets | 0 | 0 |
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | US Treasury and federal agencies, direct obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | US Treasury and federal agencies, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Total U.S. Treasury and federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, student loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, credit cards | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Asset-backed securities, collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 668 | 593 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Total asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 668 | 593 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 627 | 631 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Non-U.S. debt securities, other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 45 | 58 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Total non-U.S. debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 672 | 689 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Pricing Methods with Significant Unobservable Market Inputs (Level 3) | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 0 | $ 2 |
Fair Value - Schedule of Fair_2
Fair Value - Schedule of Fair Value Measurements, Assets, Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | $ 1,288 | $ 2,127 |
Total realized and unrealized gain (losses) recorded in revenue | (2) | (1) |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (4) | (1) |
Purchases | 144 | 432 |
Sales | 0 | (946) |
Settlements | (70) | (30) |
Transfers into Level 3 | 0 | 68 |
Transfers out of Level 3 | (12) | (333) |
Fair value, end of period | 1,344 | 1,316 |
Change in unrealized gains (losses) related to financial instruments held | (1) | (2) |
Derivative instruments, assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 4 | 1 |
Total realized and unrealized gain (losses) recorded in revenue | (3) | (2) |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 |
Purchases | 3 | 4 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value, end of period | 4 | 3 |
Change in unrealized gains (losses) related to financial instruments held | (1) | (2) |
Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 4 | 1 |
Total realized and unrealized gain (losses) recorded in revenue | (3) | (2) |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 |
Purchases | 3 | 4 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value, end of period | 4 | 3 |
Change in unrealized gains (losses) related to financial instruments held | (1) | (2) |
Asset-backed securities, collateralized loan obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 593 | 1,358 |
Total realized and unrealized gain (losses) recorded in revenue | 1 | 1 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (2) | (1) |
Purchases | 132 | 318 |
Sales | 0 | (636) |
Settlements | (56) | (5) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (209) |
Fair value, end of period | 668 | 826 |
Asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 593 | 1,358 |
Total realized and unrealized gain (losses) recorded in revenue | 1 | 1 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (2) | (1) |
Purchases | 132 | 318 |
Sales | 0 | (636) |
Settlements | (56) | (5) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (209) |
Fair value, end of period | 668 | 826 |
Non-U.S. debt securities, mortgage-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 119 | |
Total realized and unrealized gain (losses) recorded in revenue | 0 | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | |
Purchases | 0 | |
Sales | 0 | |
Settlements | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | (119) | |
Fair value, end of period | 0 | |
Non-U.S. debt securities, asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 631 | 402 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (2) | 0 |
Purchases | 9 | 110 |
Sales | 0 | (310) |
Settlements | (11) | 2 |
Transfers into Level 3 | 0 | 68 |
Transfers out of Level 3 | 0 | 0 |
Fair value, end of period | 627 | 272 |
Non-U.S. debt securities, other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 58 | 204 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | (1) | (26) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (12) | 0 |
Fair value, end of period | 45 | 178 |
Total non-U.S. debt securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 689 | 725 |
Total realized and unrealized gain (losses) recorded in revenue | 0 | 0 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (2) | 0 |
Purchases | 9 | 110 |
Sales | 0 | (310) |
Settlements | (12) | (24) |
Transfers into Level 3 | 0 | 68 |
Transfers out of Level 3 | (12) | (119) |
Fair value, end of period | 672 | 450 |
State and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 43 | |
Total realized and unrealized gain (losses) recorded in revenue | 0 | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | |
Purchases | 0 | |
Sales | 0 | |
Settlements | (1) | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | (5) | |
Fair value, end of period | 37 | |
Investment securities available-for-sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 1,284 | 2,126 |
Total realized and unrealized gain (losses) recorded in revenue | 1 | 1 |
Total realized and unrealized gain (losses) recorded in other comprehensive income | (4) | (1) |
Purchases | 141 | 428 |
Sales | 0 | (946) |
Settlements | (70) | (30) |
Transfers into Level 3 | 0 | 68 |
Transfers out of Level 3 | (12) | (333) |
Fair value, end of period | 1,340 | $ 1,313 |
Collateralized mortgage obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning of period | 2 | |
Total realized and unrealized gain (losses) recorded in revenue | 0 | |
Total realized and unrealized gain (losses) recorded in other comprehensive income | 0 | |
Purchases | 0 | |
Sales | 0 | |
Settlements | (2) | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Fair value, end of period | $ 0 |
Fair Value - Fair Value Inputs,
Fair Value - Fair Value Inputs, Assets and Liabilities, Quantitative Information (Details) - Pricing Methods with Significant Unobservable Market Inputs (Level 3) $ in Millions | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Significant Unobservable Inputs Readily Available | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Total, derivative asset | $ 4 | $ 4 |
Total liabilities carried at fair value | 3 | 4 |
Significant Unobservable Inputs Readily Available | Derivative instruments, liabilities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative instruments, foreign exchange contracts, derivative asset | 3 | 4 |
Significant Unobservable Inputs Readily Available | Derivative instruments, assets | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative instruments, foreign exchange contracts, derivative asset | $ 4 | $ 4 |
Volatility | Option model | Derivative instruments, liabilities | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative liability, measurement input | 0.073 | 0.114 |
Volatility | Option model | Derivative instruments, assets | Weighted average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivative asset, measurement input | 0.078 | 0.114 |
Fair Value - Carrying Value and
Fair Value - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Cash and due from banks | $ 4,469 | $ 3,597 |
Interest-bearing deposits with banks | 53,864 | 73,040 |
Securities purchased under resale agreements | 1,522 | 4,679 |
Investment securities held-to-maturity | 40,971 | 41,351 |
Financial Liabilities: | ||
Non-interest-bearing | 35,295 | 44,804 |
Interest-bearing - U.S. | 62,988 | 66,235 |
Interest-bearing - non-U.S. | 64,188 | 69,321 |
Securities sold under repurchase agreements | 1,420 | 1,082 |
Other short-term borrowings | 947 | 3,092 |
Reported Amount | ||
Financial Assets: | ||
Cash and due from banks | 4,469 | 3,597 |
Interest-bearing deposits with banks | 53,864 | 73,040 |
Securities purchased under resale agreements | 1,522 | 4,679 |
Investment securities held-to-maturity | 41,145 | 41,914 |
Net loans (excluding leases) | 23,311 | 25,722 |
Other | 8,500 | 8,500 |
Financial Liabilities: | ||
Non-interest-bearing | 35,295 | 44,804 |
Interest-bearing - U.S. | 62,988 | 66,235 |
Interest-bearing - non-U.S. | 64,188 | 69,321 |
Securities sold under repurchase agreements | 1,420 | 1,082 |
Other short-term borrowings | 947 | 3,092 |
Long-term debt | 11,182 | 11,093 |
Other | 8,500 | 8,500 |
Estimated Fair Value | ||
Financial Assets: | ||
Cash and due from banks | 4,469 | 3,597 |
Interest-bearing deposits with banks | 53,864 | 73,040 |
Securities purchased under resale agreements | 1,522 | 4,679 |
Investment securities held-to-maturity | 40,971 | 41,351 |
Net loans (excluding leases) | 23,288 | 25,561 |
Other | 8,500 | 8,500 |
Financial Liabilities: | ||
Non-interest-bearing | 35,295 | 44,804 |
Interest-bearing - U.S. | 62,988 | 66,235 |
Interest-bearing - non-U.S. | 64,188 | 69,321 |
Securities sold under repurchase agreements | 1,420 | 1,082 |
Other short-term borrowings | 947 | 3,092 |
Long-term debt | 11,319 | 11,048 |
Other | 8,500 | 8,500 |
Estimated Fair Value | Quoted Market Prices in Active Markets (Level 1) | ||
Financial Assets: | ||
Cash and due from banks | 4,469 | 3,597 |
Interest-bearing deposits with banks | 0 | 0 |
Securities purchased under resale agreements | 0 | 0 |
Investment securities held-to-maturity | 13,198 | 14,541 |
Net loans (excluding leases) | 0 | 0 |
Other | 0 | 0 |
Financial Liabilities: | ||
Non-interest-bearing | 0 | 0 |
Interest-bearing - U.S. | 0 | 0 |
Interest-bearing - non-U.S. | 0 | 0 |
Securities sold under repurchase agreements | 0 | 0 |
Other short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Other | 0 | 0 |
Estimated Fair Value | Pricing Methods with Significant Observable Market Inputs (Level 2) | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 53,864 | 73,040 |
Securities purchased under resale agreements | 1,522 | 4,679 |
Investment securities held-to-maturity | 27,652 | 26,688 |
Net loans (excluding leases) | 22,245 | 24,648 |
Other | 8,500 | 8,500 |
Financial Liabilities: | ||
Non-interest-bearing | 35,295 | 44,804 |
Interest-bearing - U.S. | 62,988 | 66,235 |
Interest-bearing - non-U.S. | 64,188 | 69,321 |
Securities sold under repurchase agreements | 1,420 | 1,082 |
Other short-term borrowings | 947 | 3,092 |
Long-term debt | 11,142 | 10,865 |
Other | 8,500 | 8,500 |
Estimated Fair Value | Pricing Methods with Significant Unobservable Market Inputs (Level 3) | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Securities purchased under resale agreements | 0 | 0 |
Investment securities held-to-maturity | 121 | 122 |
Net loans (excluding leases) | 1,043 | 913 |
Other | 0 | 0 |
Financial Liabilities: | ||
Non-interest-bearing | 0 | 0 |
Interest-bearing - U.S. | 0 | 0 |
Interest-bearing - non-U.S. | 0 | 0 |
Securities sold under repurchase agreements | 0 | 0 |
Other short-term borrowings | 0 | 0 |
Long-term debt | 177 | 183 |
Other | $ 0 | 0 |
Nonrecurring Measurement Basis | Estimated Fair Value | ||
Financial Assets: | ||
Net loans (excluding leases) | $ 10 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019USD ($)security | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Pledged securities not separately reported | $ 40,060 | $ 38,870 | |
Gross pre-tax unrealized losses | $ 574 | ||
Number of securities in loss position | security | 832 | ||
Non-U.S. debt securities, mortgage-backed securities | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Losses from other-than-temporary impairment | $ 1 | $ 1 |
Investment Securities - Schedul
Investment Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | $ 48,827 | $ 45,359 |
Available for sale, gross unrealized gains | 350 | 107 |
Available for sale, gross unrealized losses | 175 | 318 |
Investment securities available-for-sale | 49,002 | 45,148 |
Held to maturity, amortized cost | 41,145 | 41,914 |
Held to maturity, gross unrealized gains | 225 | 175 |
Held to maturity, gross unrealized losses | 399 | 738 |
Investment securities held-to-maturity | 40,971 | 41,351 |
US Treasury and federal agencies, direct obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,035 | 1,035 |
Available for sale, gross unrealized gains | 6 | 4 |
Available for sale, gross unrealized losses | 0 | 0 |
Investment securities available-for-sale | 1,041 | 1,039 |
Held to maturity, amortized cost | 13,369 | 14,794 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | 123 | 199 |
Investment securities held-to-maturity | 13,246 | 14,595 |
US Treasury and federal agencies, mortgage-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 20,020 | 16,112 |
Available for sale, gross unrealized gains | 132 | 37 |
Available for sale, gross unrealized losses | 109 | 181 |
Investment securities available-for-sale | 20,043 | 15,968 |
Held to maturity, amortized cost | 22,568 | 21,647 |
Held to maturity, gross unrealized gains | 76 | 24 |
Held to maturity, gross unrealized losses | 250 | 518 |
Investment securities held-to-maturity | 22,394 | 21,153 |
Total U.S. Treasury and federal agencies | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 21,055 | 17,147 |
Available for sale, gross unrealized gains | 138 | 41 |
Available for sale, gross unrealized losses | 109 | 181 |
Investment securities available-for-sale | 21,084 | 17,007 |
Held to maturity, amortized cost | 35,937 | 36,441 |
Held to maturity, gross unrealized gains | 76 | 24 |
Held to maturity, gross unrealized losses | 373 | 717 |
Investment securities held-to-maturity | 35,640 | 35,748 |
Asset-backed securities, student loans | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 477 | 538 |
Available for sale, gross unrealized gains | 4 | 4 |
Available for sale, gross unrealized losses | 0 | 1 |
Investment securities available-for-sale | 481 | 541 |
Held to maturity, amortized cost | 3,286 | 3,191 |
Held to maturity, gross unrealized gains | 26 | 35 |
Held to maturity, gross unrealized losses | 16 | 10 |
Investment securities held-to-maturity | 3,296 | 3,216 |
Asset-backed securities, credit cards | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 612 | 609 |
Available for sale, gross unrealized gains | 0 | 0 |
Available for sale, gross unrealized losses | 26 | 26 |
Investment securities available-for-sale | 586 | 583 |
Held to maturity, amortized cost | 0 | 193 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 0 | 193 |
Asset-backed securities, collateralized loan obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 889 | 594 |
Available for sale, gross unrealized gains | 0 | 1 |
Available for sale, gross unrealized losses | 3 | 2 |
Investment securities available-for-sale | 886 | 593 |
Held to maturity, amortized cost | 1 | 1 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 1 | 1 |
Total asset-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,978 | 1,741 |
Available for sale, gross unrealized gains | 4 | 5 |
Available for sale, gross unrealized losses | 29 | 29 |
Investment securities available-for-sale | 1,953 | 1,717 |
Held to maturity, amortized cost | 3,287 | 3,385 |
Held to maturity, gross unrealized gains | 26 | 35 |
Held to maturity, gross unrealized losses | 16 | 10 |
Investment securities held-to-maturity | 3,297 | 3,410 |
Non-U.S. debt securities, mortgage-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,520 | 1,687 |
Available for sale, gross unrealized gains | 1 | 0 |
Available for sale, gross unrealized losses | 4 | 5 |
Investment securities available-for-sale | 1,517 | 1,682 |
Held to maturity, amortized cost | 575 | 638 |
Held to maturity, gross unrealized gains | 82 | 77 |
Held to maturity, gross unrealized losses | 8 | 9 |
Investment securities held-to-maturity | 649 | 706 |
Non-U.S. debt securities, asset-backed securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,517 | 1,580 |
Available for sale, gross unrealized gains | 0 | 0 |
Available for sale, gross unrealized losses | 6 | 6 |
Investment securities available-for-sale | 1,511 | 1,574 |
Held to maturity, amortized cost | 98 | 223 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 98 | 223 |
Non-U.S. debt securities, government securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 12,489 | 12,816 |
Available for sale, gross unrealized gains | 97 | 22 |
Available for sale, gross unrealized losses | 14 | 45 |
Investment securities available-for-sale | 12,572 | 12,793 |
Held to maturity, amortized cost | 399 | 358 |
Held to maturity, gross unrealized gains | 1 | 1 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 400 | 359 |
Non-U.S. debt securities, other | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 6,520 | 6,600 |
Available for sale, gross unrealized gains | 59 | 18 |
Available for sale, gross unrealized losses | 3 | 16 |
Investment securities available-for-sale | 6,576 | 6,602 |
Held to maturity, amortized cost | 44 | 46 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | 0 | 0 |
Investment securities held-to-maturity | 44 | 46 |
Total non-U.S. debt securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 22,046 | 22,683 |
Available for sale, gross unrealized gains | 157 | 40 |
Available for sale, gross unrealized losses | 27 | 72 |
Investment securities available-for-sale | 22,176 | 22,651 |
Held to maturity, amortized cost | 1,116 | 1,265 |
Held to maturity, gross unrealized gains | 83 | 78 |
Held to maturity, gross unrealized losses | 8 | 9 |
Investment securities held-to-maturity | 1,191 | 1,334 |
State and political subdivisions | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,903 | 1,905 |
Available for sale, gross unrealized gains | 39 | 20 |
Available for sale, gross unrealized losses | 2 | 7 |
Investment securities available-for-sale | 1,940 | 1,918 |
Collateralized mortgage obligations | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 130 | 200 |
Available for sale, gross unrealized gains | 0 | 0 |
Available for sale, gross unrealized losses | 1 | 3 |
Investment securities available-for-sale | 129 | 197 |
Held to maturity, amortized cost | 805 | 823 |
Held to maturity, gross unrealized gains | 40 | 38 |
Held to maturity, gross unrealized losses | 2 | 2 |
Investment securities held-to-maturity | 843 | 859 |
Other U.S. debt securities | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Available for sale, amortized cost | 1,715 | 1,683 |
Available for sale, gross unrealized gains | 12 | 1 |
Available for sale, gross unrealized losses | 7 | 26 |
Investment securities available-for-sale | $ 1,720 | 1,658 |
Federal family education loan program | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Federal government credit support guarantee, percentage minimum | 97.00% | |
Non-US debt securities, covered bonds | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Investment securities available-for-sale | $ 1,050 | 1,300 |
Non-U.S. debt securities, other | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Investment securities available-for-sale | 1,330 | 1,330 |
US States and Political Subdivisions Debt Securities - Trusts | ||
Available-For-Sale and Held-To-Maturity-Securities [Line Items] | ||
Investment securities available-for-sale | $ 1,060 | $ 1,050 |
Investment Securities - Sched_2
Investment Securities - Schedule of Gross Pre-Tax Unrealized Losses on Investment Securities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | $ 9,314 | $ 17,740 |
Available for sale, gross unrealized losses less than 12 months | 35 | 110 |
Available for sale, fair value 12 months or longer | 7,039 | 6,886 |
Available for sale, gross unrealized losses 12 months or longer | 140 | 208 |
Available for sale, fair value total | 16,353 | 24,626 |
Available for sale, gross unrealized losses total | 175 | 318 |
Held to maturity, fair value less than 12 months | 3,922 | 9,461 |
Held-to-maturity, gross unrealized losses, less than 12 months | 35 | 155 |
Held to maturity, fair value 12 months or longer | 25,912 | 23,757 |
Held to maturity, gross unrealized losses 12 months or longer | 364 | 583 |
Held to maturity, fair value total | 29,834 | 33,218 |
Held to maturity, gross unrealized losses total | 399 | 738 |
US Treasury and federal agencies, mortgage-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 2,565 | 5,058 |
Available for sale, gross unrealized losses less than 12 months | 4 | 21 |
Available for sale, fair value 12 months or longer | 5,147 | 5,089 |
Available for sale, gross unrealized losses 12 months or longer | 105 | 160 |
Available for sale, fair value total | 7,712 | 10,147 |
Available for sale, gross unrealized losses total | 109 | 181 |
Held to maturity, fair value less than 12 months | 357 | 6,502 |
Held-to-maturity, gross unrealized losses, less than 12 months | 1 | 103 |
Held to maturity, fair value 12 months or longer | 14,205 | 10,648 |
Held to maturity, gross unrealized losses 12 months or longer | 249 | 415 |
Held to maturity, fair value total | 14,562 | 17,150 |
Held to maturity, gross unrealized losses total | 250 | 518 |
Total U.S. Treasury and federal agencies | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 2,565 | 5,058 |
Available for sale, gross unrealized losses less than 12 months | 4 | 21 |
Available for sale, fair value 12 months or longer | 5,147 | 5,089 |
Available for sale, gross unrealized losses 12 months or longer | 105 | 160 |
Available for sale, fair value total | 7,712 | 10,147 |
Available for sale, gross unrealized losses total | 109 | 181 |
Held to maturity, fair value less than 12 months | 2,567 | 8,694 |
Held-to-maturity, gross unrealized losses, less than 12 months | 26 | 148 |
Held to maturity, fair value 12 months or longer | 25,241 | 23,051 |
Held to maturity, gross unrealized losses 12 months or longer | 347 | 569 |
Held to maturity, fair value total | 27,808 | 31,745 |
Held to maturity, gross unrealized losses total | 373 | 717 |
Asset-backed securities, student loans | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 10 | 106 |
Available for sale, gross unrealized losses less than 12 months | 0 | 0 |
Available for sale, fair value 12 months or longer | 212 | 218 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 1 |
Available for sale, fair value total | 222 | 324 |
Available for sale, gross unrealized losses total | 0 | 1 |
Held to maturity, fair value less than 12 months | 1,155 | 481 |
Held-to-maturity, gross unrealized losses, less than 12 months | 7 | 4 |
Held to maturity, fair value 12 months or longer | 507 | 536 |
Held to maturity, gross unrealized losses 12 months or longer | 9 | 6 |
Held to maturity, fair value total | 1,662 | 1,017 |
Held to maturity, gross unrealized losses total | 16 | 10 |
Asset-backed securities, credit cards | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 89 | 90 |
Available for sale, gross unrealized losses less than 12 months | 1 | 0 |
Available for sale, fair value 12 months or longer | 497 | 493 |
Available for sale, gross unrealized losses 12 months or longer | 25 | 26 |
Available for sale, fair value total | 586 | 583 |
Available for sale, gross unrealized losses total | 26 | 26 |
Asset-backed securities, collateralized loan obligations | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 586 | 548 |
Available for sale, gross unrealized losses less than 12 months | 3 | 2 |
Available for sale, fair value 12 months or longer | 0 | 0 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 0 |
Available for sale, fair value total | 586 | 548 |
Available for sale, gross unrealized losses total | 3 | 2 |
Asset-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 685 | 744 |
Available for sale, gross unrealized losses less than 12 months | 4 | 2 |
Available for sale, fair value 12 months or longer | 709 | 711 |
Available for sale, gross unrealized losses 12 months or longer | 25 | 27 |
Available for sale, fair value total | 1,394 | 1,455 |
Available for sale, gross unrealized losses total | 29 | 29 |
Held to maturity, fair value less than 12 months | 1,155 | 481 |
Held-to-maturity, gross unrealized losses, less than 12 months | 7 | 4 |
Held to maturity, fair value 12 months or longer | 507 | 536 |
Held to maturity, gross unrealized losses 12 months or longer | 9 | 6 |
Held to maturity, fair value total | 1,662 | 1,017 |
Held to maturity, gross unrealized losses total | 16 | 10 |
Non-U.S. debt securities, mortgage-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 890 | 1,407 |
Available for sale, gross unrealized losses less than 12 months | 3 | 4 |
Available for sale, fair value 12 months or longer | 111 | 118 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 1 |
Available for sale, fair value total | 1,001 | 1,525 |
Available for sale, gross unrealized losses total | 4 | 5 |
Held to maturity, fair value less than 12 months | 99 | 184 |
Held-to-maturity, gross unrealized losses, less than 12 months | 2 | 2 |
Held to maturity, fair value 12 months or longer | 116 | 119 |
Held to maturity, gross unrealized losses 12 months or longer | 6 | 7 |
Held to maturity, fair value total | 215 | 303 |
Held to maturity, gross unrealized losses total | 8 | 9 |
Non-U.S. debt securities, asset-backed securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 992 | 1,479 |
Available for sale, gross unrealized losses less than 12 months | 6 | 6 |
Available for sale, fair value 12 months or longer | 0 | 0 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 0 |
Available for sale, fair value total | 992 | 1,479 |
Available for sale, gross unrealized losses total | 6 | 6 |
Non-U.S. debt securities, government securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 3,345 | 5,478 |
Available for sale, gross unrealized losses less than 12 months | 14 | 45 |
Available for sale, fair value 12 months or longer | 0 | 0 |
Available for sale, gross unrealized losses 12 months or longer | 0 | 0 |
Available for sale, fair value total | 3,345 | 5,478 |
Available for sale, gross unrealized losses total | 14 | 45 |
Non-U.S. debt securities, other | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 721 | 2,167 |
Available for sale, gross unrealized losses less than 12 months | 2 | 12 |
Available for sale, fair value 12 months or longer | 189 | 226 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 4 |
Available for sale, fair value total | 910 | 2,393 |
Available for sale, gross unrealized losses total | 3 | 16 |
Total non-U.S. debt securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 5,948 | 10,531 |
Available for sale, gross unrealized losses less than 12 months | 25 | 67 |
Available for sale, fair value 12 months or longer | 300 | 344 |
Available for sale, gross unrealized losses 12 months or longer | 2 | 5 |
Available for sale, fair value total | 6,248 | 10,875 |
Available for sale, gross unrealized losses total | 27 | 72 |
Held to maturity, fair value less than 12 months | 99 | 184 |
Held-to-maturity, gross unrealized losses, less than 12 months | 2 | 2 |
Held to maturity, fair value 12 months or longer | 116 | 119 |
Held to maturity, gross unrealized losses 12 months or longer | 6 | 7 |
Held to maturity, fair value total | 215 | 303 |
Held to maturity, gross unrealized losses total | 8 | 9 |
State and political subdivisions | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 0 | 365 |
Available for sale, gross unrealized losses less than 12 months | 0 | 3 |
Available for sale, fair value 12 months or longer | 254 | 244 |
Available for sale, gross unrealized losses 12 months or longer | 2 | 4 |
Available for sale, fair value total | 254 | 609 |
Available for sale, gross unrealized losses total | 2 | 7 |
Collateralized mortgage obligations | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 0 | 181 |
Available for sale, gross unrealized losses less than 12 months | 0 | 3 |
Available for sale, fair value 12 months or longer | 129 | 14 |
Available for sale, gross unrealized losses 12 months or longer | 1 | 0 |
Available for sale, fair value total | 129 | 195 |
Available for sale, gross unrealized losses total | 1 | 3 |
Held to maturity, fair value less than 12 months | 101 | 102 |
Held-to-maturity, gross unrealized losses, less than 12 months | 0 | 1 |
Held to maturity, fair value 12 months or longer | 48 | 51 |
Held to maturity, gross unrealized losses 12 months or longer | 2 | 1 |
Held to maturity, fair value total | 149 | 153 |
Held to maturity, gross unrealized losses total | 2 | 2 |
Other U.S. debt securities | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Available for sale, fair value less than 12 months | 116 | 861 |
Available for sale, gross unrealized losses less than 12 months | 2 | 14 |
Available for sale, fair value 12 months or longer | 500 | 484 |
Available for sale, gross unrealized losses 12 months or longer | 5 | 12 |
Available for sale, fair value total | 616 | 1,345 |
Available for sale, gross unrealized losses total | 7 | 26 |
US Treasury and federal agencies, direct obligations | ||
Gross Pre-Tax Unrealized Losses On Investment Securities [Line Items] | ||
Held to maturity, fair value less than 12 months | 2,210 | 2,192 |
Held-to-maturity, gross unrealized losses, less than 12 months | 25 | 45 |
Held to maturity, fair value 12 months or longer | 11,036 | 12,403 |
Held to maturity, gross unrealized losses 12 months or longer | 98 | 154 |
Held to maturity, fair value total | 13,246 | 14,595 |
Held to maturity, gross unrealized losses total | $ 123 | $ 199 |
Investment Securities - Sched_3
Investment Securities - Schedule of Contractual Maturities of Debt Securities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | $ 5,858 | |
Available for sale, 1 to 5 Years | 17,530 | |
Available for sale, 6 to 10 Years | 7,727 | |
Available for sale, over 10 Years | 17,887 | |
Available-for-sale, fair value | 49,002 | $ 45,148 |
Held to maturity, under 1 Year | 3,826 | |
Held to maturity, 1 to 5 Years | 11,053 | |
Held to maturity, 6 to 10 Years | 1,953 | |
Held to maturity, over 10 Years | 24,313 | |
Held to maturity, amortized cost | 41,145 | 41,914 |
US Treasury and federal agencies, direct obligations | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 235 | |
Available for sale, 1 to 5 Years | 806 | |
Available for sale, 6 to 10 Years | 0 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | 1,041 | 1,039 |
Held to maturity, under 1 Year | 3,225 | |
Held to maturity, 1 to 5 Years | 10,096 | |
Held to maturity, 6 to 10 Years | 11 | |
Held to maturity, over 10 Years | 37 | |
Held to maturity, amortized cost | 13,369 | 14,794 |
US Treasury and federal agencies, mortgage-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 44 | |
Available for sale, 1 to 5 Years | 991 | |
Available for sale, 6 to 10 Years | 2,490 | |
Available for sale, over 10 Years | 16,518 | |
Available-for-sale, fair value | 20,043 | 15,968 |
Held to maturity, under 1 Year | 31 | |
Held to maturity, 1 to 5 Years | 236 | |
Held to maturity, 6 to 10 Years | 1,538 | |
Held to maturity, over 10 Years | 20,763 | |
Held to maturity, amortized cost | 22,568 | 21,647 |
Total U.S. Treasury and federal agencies | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 279 | |
Available for sale, 1 to 5 Years | 1,797 | |
Available for sale, 6 to 10 Years | 2,490 | |
Available for sale, over 10 Years | 16,518 | |
Available-for-sale, fair value | 21,084 | 17,007 |
Held to maturity, under 1 Year | 3,256 | |
Held to maturity, 1 to 5 Years | 10,332 | |
Held to maturity, 6 to 10 Years | 1,549 | |
Held to maturity, over 10 Years | 20,800 | |
Held to maturity, amortized cost | 35,937 | 36,441 |
Asset-backed securities, student loans | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 94 | |
Available for sale, 1 to 5 Years | 160 | |
Available for sale, 6 to 10 Years | 161 | |
Available for sale, over 10 Years | 66 | |
Available-for-sale, fair value | 481 | 541 |
Held to maturity, under 1 Year | 7 | |
Held to maturity, 1 to 5 Years | 255 | |
Held to maturity, 6 to 10 Years | 383 | |
Held to maturity, over 10 Years | 2,641 | |
Held to maturity, amortized cost | 3,286 | 3,191 |
Asset-backed securities, credit cards | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 200 | |
Available for sale, 1 to 5 Years | 297 | |
Available for sale, 6 to 10 Years | 89 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | 586 | 583 |
Held to maturity, under 1 Year | 0 | |
Held to maturity, 1 to 5 Years | 0 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 0 | 193 |
Asset-backed securities, collateralized loan obligations | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 0 | |
Available for sale, 1 to 5 Years | 418 | |
Available for sale, 6 to 10 Years | 423 | |
Available for sale, over 10 Years | 45 | |
Available-for-sale, fair value | 886 | 593 |
Held to maturity, under 1 Year | 0 | |
Held to maturity, 1 to 5 Years | 0 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 1 | |
Held to maturity, amortized cost | 1 | 1 |
Total asset-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 294 | |
Available for sale, 1 to 5 Years | 875 | |
Available for sale, 6 to 10 Years | 673 | |
Available for sale, over 10 Years | 111 | |
Available-for-sale, fair value | 1,953 | 1,717 |
Held to maturity, under 1 Year | 7 | |
Held to maturity, 1 to 5 Years | 255 | |
Held to maturity, 6 to 10 Years | 383 | |
Held to maturity, over 10 Years | 2,642 | |
Held to maturity, amortized cost | 3,287 | 3,385 |
Non-U.S. debt securities, mortgage-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 266 | |
Available for sale, 1 to 5 Years | 552 | |
Available for sale, 6 to 10 Years | 171 | |
Available for sale, over 10 Years | 528 | |
Available-for-sale, fair value | 1,517 | 1,682 |
Held to maturity, under 1 Year | 134 | |
Held to maturity, 1 to 5 Years | 40 | |
Held to maturity, 6 to 10 Years | 7 | |
Held to maturity, over 10 Years | 394 | |
Held to maturity, amortized cost | 575 | 638 |
Non-U.S. debt securities, asset-backed securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 368 | |
Available for sale, 1 to 5 Years | 561 | |
Available for sale, 6 to 10 Years | 446 | |
Available for sale, over 10 Years | 136 | |
Available-for-sale, fair value | 1,511 | 1,574 |
Held to maturity, under 1 Year | 98 | |
Held to maturity, 1 to 5 Years | 0 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 98 | 223 |
Non-U.S. debt securities, government securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 3,178 | |
Available for sale, 1 to 5 Years | 6,802 | |
Available for sale, 6 to 10 Years | 2,592 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | 12,572 | 12,793 |
Held to maturity, under 1 Year | 286 | |
Held to maturity, 1 to 5 Years | 113 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 399 | 358 |
Non-U.S. debt securities, other | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 1,141 | |
Available for sale, 1 to 5 Years | 4,860 | |
Available for sale, 6 to 10 Years | 554 | |
Available for sale, over 10 Years | 21 | |
Available-for-sale, fair value | 6,576 | 6,602 |
Held to maturity, under 1 Year | 44 | |
Held to maturity, 1 to 5 Years | 0 | |
Held to maturity, 6 to 10 Years | 0 | |
Held to maturity, over 10 Years | 0 | |
Held to maturity, amortized cost | 44 | 46 |
Total non-U.S. debt securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 4,953 | |
Available for sale, 1 to 5 Years | 12,775 | |
Available for sale, 6 to 10 Years | 3,763 | |
Available for sale, over 10 Years | 685 | |
Available-for-sale, fair value | 22,176 | 22,651 |
Held to maturity, under 1 Year | 562 | |
Held to maturity, 1 to 5 Years | 153 | |
Held to maturity, 6 to 10 Years | 7 | |
Held to maturity, over 10 Years | 394 | |
Held to maturity, amortized cost | 1,116 | 1,265 |
State and political subdivisions | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 180 | |
Available for sale, 1 to 5 Years | 791 | |
Available for sale, 6 to 10 Years | 525 | |
Available for sale, over 10 Years | 444 | |
Available-for-sale, fair value | 1,940 | 1,918 |
Collateralized mortgage obligations | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 0 | |
Available for sale, 1 to 5 Years | 0 | |
Available for sale, 6 to 10 Years | 0 | |
Available for sale, over 10 Years | 129 | |
Available-for-sale, fair value | 129 | 197 |
Held to maturity, under 1 Year | 1 | |
Held to maturity, 1 to 5 Years | 313 | |
Held to maturity, 6 to 10 Years | 14 | |
Held to maturity, over 10 Years | 477 | |
Held to maturity, amortized cost | 805 | 823 |
Other U.S. debt securities | ||
Contractual Maturities Of Debt Investment Securities [Line Items] | ||
Available for sale, under 1 Year | 152 | |
Available for sale, 1 to 5 Years | 1,292 | |
Available for sale, 6 to 10 Years | 276 | |
Available for sale, over 10 Years | 0 | |
Available-for-sale, fair value | $ 1,720 | $ 1,658 |
Investment Securities - Sched_4
Investment Securities - Schedule of Credit-Related Loss Activity Recognized In Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance, beginning of period | $ 78 | $ 77 |
Other-than-temporary-impairment recognized | 1 | 1 |
Balance, end of period | $ 79 | $ 78 |
Loans and Leases - Narrative (D
Loans and Leases - Narrative (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)loan_segmentloan | Dec. 31, 2018USD ($)loan | |
Financing Receivable, Recorded Investment [Line Items] | ||
Number of loans and leases segments | loan_segment | 2 | |
Loans and leases pledged as collateral | $ 7,200,000,000 | $ 6,500,000,000 |
Number of loans on non-accrual status | loan | 0 | 0 |
Loans more than 90 days past due | loan | 0 | 0 |
Loans modified in troubled debt restructurings | loan | 0 | 0 |
Total loans and leases | $ 23,381,000,000 | $ 25,789,000,000 |
Commercial and Financial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 22,405,000,000 | 24,915,000,000 |
Individually evaluated for impairment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | $ 0 | |
Individually evaluated for impairment | Commercial and Financial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | $ 8,000,000 |
Loans and Leases - Net Loans (D
Loans and Leases - Net Loans (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 23,381 | $ 25,789 |
Allowance for loan and lease losses | (70) | (67) |
Loans and leases, net of allowance | 23,311 | 25,722 |
Domestic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans to investment funds | 11,935 | 15,050 |
Senior secured bank loans | 3,516 | 3,490 |
Loans to municipalities | 966 | 902 |
Other | 34 | 37 |
Commercial real estate | 976 | 874 |
Total loans and leases | 17,427 | 20,353 |
Non-U.S. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans to investment funds | 4,989 | 4,505 |
Senior secured bank loans | 965 | 931 |
Total loans and leases | $ 5,954 | $ 5,436 |
Loans and Leases - Recorded Inv
Loans and Leases - Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 23,381,000 | $ 25,789,000 |
Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 22,405,000 | 24,915,000 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 976,000 | 874,000 |
Investment grade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 18,104,000 | 20,473,000 |
Investment grade | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 17,128,000 | 19,599,000 |
Investment grade | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 976,000 | 874,000 |
Speculative | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 5,277,000 | 5,308,000 |
Speculative | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 5,277,000 | 5,308,000 |
Speculative | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 0 | 0 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 8,000 | |
Substandard | Commercial and Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 8,000 | |
Substandard | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 0 |
Loans and Leases - Schedule of
Loans and Leases - Schedule of Activity In The Allowance For Loan Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | $ 67 | $ 54 |
Provision for loan and lease losses | 4 | 0 |
Other | (1) | 0 |
Ending balance | $ 70 | $ 54 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes In The Carrying Amount Of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 7,446 | $ 6,022 |
Acquisitions | 121 | 1,512 |
Foreign currency translation | (18) | (88) |
Ending balance | 7,549 | 7,446 |
Investment Servicing | ||
Goodwill [Roll Forward] | ||
Beginning balance | 7,180 | 5,752 |
Acquisitions | 121 | 1,512 |
Foreign currency translation | (18) | (84) |
Ending balance | 7,283 | 7,180 |
Investment Management | ||
Goodwill [Roll Forward] | ||
Beginning balance | 266 | 270 |
Acquisitions | 0 | 0 |
Foreign currency translation | 0 | (4) |
Ending balance | 266 | $ 266 |
CRD Acquisition | ||
Goodwill [Roll Forward] | ||
Increase to goodwill | $ 112 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Changes In The Carrying Amount Of Other Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | $ 2,369 | $ 1,613 | $ 1,613 |
Acquisitions | 1,007 | ||
Acquisitions | (93) | ||
Amortization | (60) | (50) | (226) |
Foreign currency translation | (8) | (25) | |
Ending balance | 2,208 | 2,369 | |
Investment Servicing | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | 2,218 | 1,432 | 1,432 |
Acquisitions | 1,007 | ||
Acquisitions | (93) | ||
Amortization | (53) | (196) | |
Foreign currency translation | (8) | (25) | |
Ending balance | 2,064 | 2,218 | |
Investment Management | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | 151 | $ 181 | 181 |
Acquisitions | 0 | ||
Acquisitions | 0 | ||
Amortization | (7) | (30) | |
Foreign currency translation | 0 | 0 | |
Ending balance | 144 | $ 151 | |
CRD Acquisition | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Acquisitions | $ (93) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Gross Carrying Amount, Accumulated Amortization And Net Carrying Amount Of Other Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 4,320 | $ 4,430 | |
Accumulated Amortization | (2,112) | (2,061) | |
Net Carrying Amount | 2,208 | 2,369 | $ 1,613 |
Client relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 3,144 | 3,262 | |
Accumulated Amortization | (1,639) | (1,605) | |
Net Carrying Amount | 1,505 | 1,657 | |
Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 403 | 389 | |
Accumulated Amortization | (60) | (49) | |
Net Carrying Amount | 343 | 340 | |
Core deposits | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 673 | 676 | |
Accumulated Amortization | (356) | (350) | |
Net Carrying Amount | 317 | 326 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 100 | 103 | |
Accumulated Amortization | (57) | (57) | |
Net Carrying Amount | $ 43 | $ 46 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Other Assets [Abstract] | ||
Securities borrowed | $ 23,929 | $ 19,575 |
Derivative instruments, net | 4,178 | 5,189 |
Bank-owned life insurance | 3,345 | 3,323 |
Investments in joint ventures and other unconsolidated entities | 2,668 | 2,882 |
Receivable for securities settlement | 969 | 531 |
Collateral, net | 903 | 1,354 |
Right-of-use assets | 899 | |
Accounts receivable | 760 | 343 |
Prepaid expenses | 520 | 493 |
Income taxes receivable | 100 | 129 |
Deferred tax assets, net of valuation allowance | 100 | 113 |
Deposits with clearing organizations | 58 | 58 |
Other | 470 | 414 |
Total | $ 38,899 | $ 34,404 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 11,597 | $ 16,807 |
LIBOR Indexed Floating Rate Loans | ||
Derivative [Line Items] | ||
Term of debt instrument | 3 years | |
Interest rate swap | Fair Value Hedges | ||
Derivative [Line Items] | ||
Notional amount of derivative instruments | $ 9,300 | $ 9,300 |
Credit swap agreements | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 1,700 | |
Cash collateral provided for derivative instruments | 1,000 | |
Maximum additional amount of payments related to termination events | $ 700 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Outstanding Hedges: (Notional Amount) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives not designated as hedging instruments | Interest rate contracts | Futures | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | $ 4,387 | $ 2,348 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Futures | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 414 | 49 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Forward, swap and spot | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 2,284,676 | 2,238,819 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Options purchased | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 797 | 578 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Options written | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 505 | 576 |
Derivatives not designated as hedging instruments | Other derivative contracts | Stable value contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 26,991 | 26,634 |
Derivatives not designated as hedging instruments | Other derivative contracts | Deferred value awards | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 559 | 434 |
Hedged Items Currently Designated | Interest rate contracts | Swap agreements | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | 10,596 | 10,596 |
Hedged Items Currently Designated | Foreign exchange contracts | Forward and swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount of derivative instruments | $ 3,050 | $ 3,412 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of The Fair Values of Derivative Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 11,144 | $ 16,399 |
Fair value of derivative liabilities | 11,597 | 16,807 |
Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 11,144 | 16,386 |
Fair value of derivative liabilities | 11,300 | 16,522 |
Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 13 | |
Fair value of derivative liabilities | 69 | 71 |
Derivatives not designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 11,123 | 16,369 |
Fair value of derivative liabilities | 11,468 | 16,648 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 11,123 | 16,369 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 11,240 | 16,434 |
Derivatives not designated as hedging instruments | Other derivative contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 0 |
Derivatives not designated as hedging instruments | Other derivative contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 228 | 214 |
Derivatives designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 21 | 30 |
Derivatives designated as hedging instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 129 | 159 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 21 | 17 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 60 | 88 |
Derivatives designated as hedging instruments | Interest rate contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 13 |
Derivatives designated as hedging instruments | Interest rate contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 69 | $ 71 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||||
Net interest income | $ 673 | $ 643 | $ 673 | $ 643 |
Processing fees and other | 191 | 77 | ||
Derivatives not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 46 | 103 | ||
Derivatives not designated as hedging instruments | Foreign exchange contracts | Foreign exchange trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 160 | 184 | ||
Derivatives not designated as hedging instruments | Foreign exchange contracts | Interest expense | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | (39) | (15) | ||
Derivatives not designated as hedging instruments | Interest rate contracts | Foreign exchange trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | (1) | (2) | ||
Derivatives not designated as hedging instruments | Other derivative contracts | Foreign exchange trading services | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | 0 | 1 | ||
Derivatives not designated as hedging instruments | Other derivative contracts | Compensation and employee benefits | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) on derivative recognized in income | (74) | (65) | ||
Effect of Change | ||||
Derivative [Line Items] | ||||
Net interest income | 15 | |||
Net interest income | ||||
Derivative [Line Items] | ||||
Net interest income | 673 | 643 | ||
Net interest income | Effect of Change | ||||
Derivative [Line Items] | ||||
Net interest income | 15 | |||
Processing fees and other | ||||
Derivative [Line Items] | ||||
Processing fees and other | $ 191 | 77 | ||
Processing fees and other | Effect of Change | ||||
Derivative [Line Items] | ||||
Processing fees and other | $ (15) |
Derivative Financial Instrume_7
Derivative Financial Instruments - Carrying Amount and Cumulative Basis Adjustments for Hedge Accounting (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Hedged Items Currently Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | $ 9,824,000,000 | $ 9,766,000,000 |
Cumulative Hedge Accounting Basis Adjustments | 53,000,000 | (65,000,000) |
Hedged Items Currently Designated | Long-term debt | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 8,271,000,000 | 8,270,000,000 |
Cumulative Hedge Accounting Basis Adjustments | (23,000,000) | (137,000,000) |
Hedged Items Currently Designated | Investment securities available-for-sale | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 1,553,000,000 | 1,496,000,000 |
Cumulative Hedge Accounting Basis Adjustments | 76,000,000 | 72,000,000 |
Hedged Items Currently Designated | Investment securities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 0 | 458,000,000 |
Hedged Items No Longer Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 1,248,000,000 | 1,247,000,000 |
Cumulative Hedge Accounting Basis Adjustments | (16,000,000) | (19,000,000) |
Hedged Items No Longer Designated | Long-term debt | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 1,198,000,000 | 1,197,000,000 |
Cumulative Hedge Accounting Basis Adjustments | (17,000,000) | (20,000,000) |
Hedged Items No Longer Designated | Investment securities available-for-sale | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Assets | 50,000,000 | 50,000,000 |
Cumulative Hedge Accounting Basis Adjustments | $ 1,000,000 | $ 1,000,000 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Impact on Derivatives and Hedged Items on Consolidated Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | $ 103 | $ 89 | |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | (98) | (100) | |
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes | (2) | 18 | |
Investment securities | Processing fees and other revenue | Foreign exchange contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | (13) | $ 0 | |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | 0 | 13 | |
Foreign exchange deposit | Processing fees and other revenue | Foreign exchange contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | 0 | 248 | |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | 0 | (248) | |
Investment securities available-for-sale | Net interest income | Interest rate contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | 106 | 21 | |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | (102) | (21) | |
Long-term debt | Net interest income | Interest rate contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income | (3) | (167) | |
Amount of Gain (Loss) on Hedged Item Recognized in Consolidated Statement of Income | $ 4 | $ 156 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Schedule of Differences Between the Gains (Losses) on the Derivative and The Gains (Losses) on the Hedged Item (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative [Line Items] | ||
Gain (loss) on derivative recognized in OCI, cash flow hedge | $ 37 | $ (108) |
Gain (loss) on derivative recognized in OCI, net investment hedge | 20 | (36) |
Gain (loss) on hedges reclassified to income, cash flow hedge | 5 | 8 |
Gain (loss) on hedges reclassified to income, net investment hedge | 0 | 0 |
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative | 57 | (144) |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 5 | 8 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Gain (loss) on derivative recognized in OCI, cash flow hedge | 10 | (20) |
Interest rate contracts | Net interest revenue | ||
Derivative [Line Items] | ||
Gain (loss) on hedges reclassified to income, cash flow hedge | (2) | 1 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gain (loss) on derivative recognized in OCI, cash flow hedge | 27 | (88) |
Gain (loss) on derivative recognized in OCI, net investment hedge | 20 | (36) |
Foreign exchange contracts | Net interest revenue | ||
Derivative [Line Items] | ||
Gain (loss) on hedges reclassified to income, cash flow hedge | 7 | 7 |
Foreign exchange contracts | Gains (Losses) related to investment securities, net | ||
Derivative [Line Items] | ||
Gain (loss) on hedges reclassified to income, net investment hedge | $ 0 | $ 0 |
Offsetting Arrangements - Narra
Offsetting Arrangements - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Offsetting [Abstract] | ||
Fair Value of securities received as collateral that can be resold or repledged | $ 11,740,000 | $ 11,690,000 |
Fair Value of securities received as collateral that have been resold or repledged | $ 7,990,000 | $ 5,310 |
Offsetting Arrangements - Asset
Offsetting Arrangements - Assets With Offsetting Arrangements (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | $ 11,144 | $ 16,399 |
Derivatives, Gross Amounts Offset in Statement of Condition | (6,966) | (11,210) |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 4,178 | 5,189 |
Derivatives, Net Amount | 3,710 | 4,969 |
Derivative asset, collateral, cash offset | (639) | (987) |
Derivatives, Cash collateral and securities netting, Cash and Securities Received | (468) | (220) |
Derivatives, Cash collateral and securities netting, Net | (1,107) | (1,207) |
Resale agreements and securities borrowing, Gross Amounts of Recognized Assets | 103,293 | 116,143 |
Resale agreements and securities borrowing, Gross Amounts Offset in Statement of Condition | (77,842) | (91,889) |
Resale agreements and securities borrowing, Net Amounts of Assets Presented in Statement of Condition | 25,451 | 24,254 |
Resale agreements and securities borrowing, Cash and Securities Received | (24,487) | (22,872) |
Resale agreements and securities borrowing, Net Amount | 964 | 1,382 |
Total derivatives and other financial instruments, Gross Amounts of Recognized Assets | 114,437 | 132,542 |
Total derivatives and other financial instruments, Gross Amounts Offset in Statement of Condition | (84,808) | (103,099) |
Total derivatives and other financial instruments, Net Amounts of Assets Presented in Statement of Condition | 29,629 | 29,443 |
Total derivatives and other financial instruments, Cash and Securities Received(5) | (24,955) | (23,092) |
Total derivatives and other financial instruments, Net Amount | 4,674 | 6,351 |
Securities purchased under resale agreements | 1,522 | 4,679 |
Cash collateral provided for securities borrowing | 23,930 | 19,580 |
Foreign exchange contracts | ||
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | 11,144 | 16,386 |
Derivatives, Gross Amounts Offset in Statement of Condition | (6,327) | (10,223) |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 4,817 | 6,163 |
Derivatives, Net Amount | $ 4,817 | 6,163 |
Interest rate contracts | ||
Offsetting Assets [Line Items] | ||
Derivatives, Gross Amounts of Recognized Assets | 13 | |
Derivatives, Gross Amounts Offset in Statement of Condition | 0 | |
Derivatives, Net Amounts of Assets Presented in Statement of Condition | 13 | |
Derivatives, Net Amount | $ 13 |
Offsetting Arrangements - Liabi
Offsetting Arrangements - Liabilities With Offsetting Arrangements (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | $ 11,597 | $ 16,807 |
Derivatives, Gross amounts offset in statement of condition | (7,519) | (11,564) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 4,078 | 5,243 |
Derivative, Net Amount | 3,445 | 5,028 |
Derivative liability, collateral, cash offset | (1,192) | (1,341) |
Derivatives, Cash and collateral securities netting, Cash and Securities Provided | (633) | (215) |
Derivatives, Cash and collateral securities netting, Net | (1,825) | (1,556) |
Resale agreements and securities lending, Gross Amounts of Recognized Liabilities(1)(2) | 93,272 | 104,494 |
Resale agreements and securities lending, Gross Amounts Offset in Statement of Condition(3) | (77,842) | (91,889) |
Resale agreements and securities lending, Net Amounts of Liabilities Presented in Statement of Condition | 15,430 | 12,605 |
Resale agreements and securities lending, Cash and Securities Provided | (14,103) | (11,543) |
Resale agreements and securities lending, Net Amount | 1,327 | 1,062 |
Total derivatives and other financial instruments, Gross Amounts of Recognized Liabilities | 104,869 | 121,301 |
Total derivatives and other financial instruments, Gross Amounts Offset in Statement of Condition | (85,361) | (103,453) |
Total derivatives and other financial instruments, Net Amounts of Liabilities Presented in Statement of Condition | 19,508 | 17,848 |
Total derivatives and other financial instruments, Cash and Securities Provided | (14,736) | (11,758) |
Total derivatives and other financial instruments, Net Amount | 4,772 | 6,090 |
Securities sold under repurchase agreements | 1,420 | 1,082 |
Foreign exchange contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 11,300 | 16,522 |
Derivatives, Gross amounts offset in statement of condition | (6,327) | (10,223) |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 4,973 | 6,299 |
Derivative, Net Amount | 4,973 | 6,299 |
Interest rate contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 69 | 71 |
Derivatives, Gross amounts offset in statement of condition | 0 | 0 |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 69 | 71 |
Derivative, Net Amount | 69 | 71 |
Other derivative contracts | ||
Offsetting Liabilities [Line Items] | ||
Derivatives, Gross amounts of recognized liabilities | 228 | 214 |
Derivatives, Gross amounts offset in statement of condition | 0 | 0 |
Derivatives, Net Amounts of Liabilities Presented in Statement of Condition | 228 | 214 |
Derivative, Net Amount | $ 228 | $ 214 |
Offsetting Arrangements - Repo,
Offsetting Arrangements - Repo, Sec Lending Transactions Maturity By Category (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | $ 74,346 | $ 88,904 |
Securities lending transactions | 18,926 | 15,590 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 93,272 | 104,494 |
U.S. Treasury and agency securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 74,346 | 88,904 |
Securities lending transactions | 136 | 249 |
Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 433 | 278 |
Equity securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 9,857 | 6,563 |
Other | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 8,500 | 8,500 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 74,346 | 88,904 |
Securities lending transactions | 18,802 | 15,453 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 93,148 | 104,357 |
Overnight and Continuous | U.S. Treasury and agency securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 74,346 | 88,904 |
Securities lending transactions | 136 | 249 |
Overnight and Continuous | Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 433 | 278 |
Overnight and Continuous | Equity securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 9,733 | 6,426 |
Overnight and Continuous | Other | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 8,500 | 8,500 |
Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities lending transactions | 124 | 137 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 124 | 137 |
Up to 30 Days | U.S. Treasury and agency securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 0 | 0 |
Securities lending transactions | 0 | 0 |
Up to 30 Days | Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 0 | 0 |
Up to 30 Days | Equity securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | 124 | 137 |
Up to 30 Days | Other | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities lending transactions | $ 0 | $ 0 |
Commitments and Guarantees - Co
Commitments and Guarantees - Contractual Amounts of Credit-Related Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded credit facilities | $ 29,951 | $ 28,951 |
Indemnified securities financing | 387,314 | 342,337 |
Standby letters of credit | $ 2,973 | $ 2,985 |
Unfunded commitments to extend credit, short term | 75.00% | |
Term of unfunded commitment | 1 year |
Commitments and Guarantees - Na
Commitments and Guarantees - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||
Cash collateral provided for securities lending | $ 23,930 | $ 19,580 |
Accrued expenses and other liabilities | ||
Loss Contingencies [Line Items] | ||
Cash collateral received in connection to securities finance activities | $ 14,010 | $ 11,520 |
Commitments and Guarantees - Sc
Commitments and Guarantees - Schedule Of Repurchase Agreements (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Fair value of indemnified securities financing | $ 387,314 | $ 342,337 |
Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing | 405,299 | 357,893 |
Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements | 47,560 | 42,610 |
Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements | $ 50,351 | $ 45,064 |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Apr. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | |||
Accrual of loss contingency | $ 53 | ||
Estimate of possible loss | 300 | ||
Unrecognized tax benefits | 103 | $ 108 | |
Legal Reserve | Invoicing Matter | |||
Loss Contingencies [Line Items] | |||
Estimate of possible loss | $ 380 | ||
Subsequent Event | Shareholder Litigation | |||
Loss Contingencies [Line Items] | |||
Amount awarded to other party | $ 4.9 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | ||
Investment securities related to state and political subdivisions | $ 1,060 | $ 1,050 |
Variable interest entity, other short-term borrowings | $ 930 | $ 930 |
Weighted average life of trusts | 3 years 4 months 24 days | 3 years 7 months 6 days |
VIE - not primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Potential maximum loss exposure of unconsolidated funds | $ 37 | $ 70 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | |||||
Sep. 30, 2018 | Apr. 30, 2016 | May 31, 2015 | Nov. 30, 2014 | Feb. 28, 2014 | Aug. 31, 2012 | |
Series C Preferred Stock, Depository Share | ||||||
Class of Stock [Line Items] | ||||||
Depositary shares issued (shares) | 20,000,000 | |||||
Liquidation preference per share (USD per share) | $ 25 | |||||
Series C Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Ownership Interest Per Depositary Share | 0.025% | |||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||
Proceeds from issuance of preferred stock, net of issuance costs | $ 488 | |||||
Series D Preferred Stock, Depository Share | ||||||
Class of Stock [Line Items] | ||||||
Depositary shares issued (shares) | 30,000,000 | |||||
Liquidation preference per share (USD per share) | $ 25 | |||||
Series D Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Ownership Interest Per Depositary Share | 0.025% | |||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||
Proceeds from issuance of preferred stock, net of issuance costs | $ 742 | |||||
Series E Preferred Stock, Depository Share | ||||||
Class of Stock [Line Items] | ||||||
Depositary shares issued (shares) | 30,000,000 | |||||
Liquidation preference per share (USD per share) | $ 25 | |||||
Series E Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Ownership Interest Per Depositary Share | 0.025% | |||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||
Proceeds from issuance of preferred stock, net of issuance costs | $ 728 | |||||
Series F Preferred Stock, Depository Share | ||||||
Class of Stock [Line Items] | ||||||
Depositary shares issued (shares) | 750,000 | |||||
Liquidation preference per share (USD per share) | $ 1,000 | |||||
Series F Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Ownership Interest Per Depositary Share | 1.00% | |||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||
Proceeds from issuance of preferred stock, net of issuance costs | $ 742 | |||||
Series G Preferred Stock, Depository Share | ||||||
Class of Stock [Line Items] | ||||||
Depositary shares issued (shares) | 20,000,000 | |||||
Liquidation preference per share (USD per share) | $ 25 | |||||
Series G Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Ownership Interest Per Depositary Share | 0.025% | |||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||
Proceeds from issuance of preferred stock, net of issuance costs | $ 493 | |||||
Series H Preferred Stock, Depository Share | ||||||
Class of Stock [Line Items] | ||||||
Depositary shares issued (shares) | 500,000 | |||||
Liquidation preference per share (USD per share) | $ 1,000 | |||||
Series H Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Ownership Interest Per Depositary Share | 1.00% | |||||
Liquidation preference per share (USD per share) | $ 100,000 | |||||
Proceeds from issuance of preferred stock, net of issuance costs | $ 494 |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Dividends Payable [Line Items] | ||
Preferred stock cash dividend | $ 55 | $ 55 |
Cash dividends declared (in USD per share) | $ 0.47 | $ 0.42 |
Common stock dividends | $ 177 | $ 154 |
Series C Preferred Stock | ||
Dividends Payable [Line Items] | ||
Preferred dividends declared (USD per share) | $ 1,313 | $ 1,313 |
Preferred stock cash dividend | $ 6 | $ 6 |
Series C Preferred Stock, Depository Share | ||
Dividends Payable [Line Items] | ||
Preferred dividends declared (USD per share) | $ 0.33 | $ 0.33 |
Series D Preferred Stock | ||
Dividends Payable [Line Items] | ||
Preferred dividends declared (USD per share) | $ 1,475 | $ 1,475 |
Preferred stock cash dividend | $ 11 | $ 11 |
Series D Preferred Stock, Depository Share | ||
Dividends Payable [Line Items] | ||
Preferred dividends declared (USD per share) | $ 0.37 | $ 0.37 |
Series E Preferred Stock | ||
Dividends Payable [Line Items] | ||
Preferred dividends declared (USD per share) | $ 1,500 | $ 1,500 |
Preferred stock cash dividend | $ 11 | $ 11 |
Series E Preferred Stock, Depository Share | ||
Dividends Payable [Line Items] | ||
Preferred dividends declared (USD per share) | $ 0.38 | $ 0.38 |
Series F Preferred Stock | ||
Dividends Payable [Line Items] | ||
Preferred dividends declared (USD per share) | $ 2,625 | $ 2,625 |
Preferred stock cash dividend | $ 20 | $ 20 |
Series F Preferred Stock, Depository Share | ||
Dividends Payable [Line Items] | ||
Preferred dividends declared (USD per share) | $ 26.25 | $ 26.25 |
Series G Preferred Stock | ||
Dividends Payable [Line Items] | ||
Preferred dividends declared (USD per share) | $ 1,338 | $ 1,338 |
Preferred stock cash dividend | $ 7 | $ 7 |
Series G Preferred Stock, Depository Share | ||
Dividends Payable [Line Items] | ||
Preferred dividends declared (USD per share) | $ 0.33 | $ 0.33 |
Series H Preferred Stock | ||
Dividends Payable [Line Items] | ||
Preferred dividends declared (USD per share) | $ 0 | $ 0 |
Preferred stock cash dividend | $ 0 | $ 0 |
Series H Preferred Stock, Depository Share | ||
Dividends Payable [Line Items] | ||
Preferred dividends declared (USD per share) | $ 0 | $ 0 |
Shareholders' Equity - Common S
Shareholders' Equity - Common Stock (Details) - 2018 Program - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Jun. 30, 2019 | |
Equity, Class of Treasury Stock [Line Items] | ||
Common stock repurchased | $ 300,000,000 | |
Forecast | ||
Equity, Class of Treasury Stock [Line Items] | ||
Amount of common stock authorized for repurchase | $ 300,000,000 |
Shareholders' Equity - Schedu_3
Shareholders' Equity - Schedule of Common Stock (Details) - 2018 Program $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Equity, Class of Treasury Stock [Line Items] | |
Shares Acquired (in shares) | shares | 4.2 |
Average Cost per Share (USD per share) | $ / shares | $ 70.93 |
Total Acquired | $ | $ 300 |
Shareholders' Equity - Schedu_4
Shareholders' Equity - Schedule of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Net unrealized (losses) on cash flow hedges | $ (71) | $ (89) |
Net unrealized gains (losses) on available-for-sale securities portfolio | 114 | (193) |
Net unrealized gains related to reclassified available-for-sale securities | 58 | 58 |
Net unrealized gains (losses) on available-for-sale securities | 172 | (135) |
Net unrealized (losses) on available-for-sale securities designated in fair value hedges | (56) | (40) |
Net unrealized gains on hedges of net investments in non-U.S. subsidiaries | 36 | 16 |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit | (3) | (2) |
Net unrealized (losses) on retirement plans | (179) | (143) |
Foreign currency translation | (1,079) | (963) |
Total | $ (1,180) | $ (1,356) |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 24,737 | $ 22,270 | |
Other comprehensive income (loss) before reclassifications | 269 | (75) | |
Reclassification of certain tax effects | (84) | ||
Amounts reclassified into (out of) earnings | (9) | 10 | |
Other comprehensive income (loss) | 176 | (65) | |
Ending balance | 25,038 | 22,350 | |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,356) | (1,009) | |
Reclassification of certain tax effects | [1] | (84) | |
Ending balance | (1,180) | (1,074) | |
Net Unrealized Gains (Losses) on Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (89) | (56) | |
Other comprehensive income (loss) before reclassifications | 24 | (97) | |
Reclassification of certain tax effects | (6) | ||
Amounts reclassified into (out of) earnings | 0 | 0 | |
Other comprehensive income (loss) | 18 | (97) | |
Ending balance | (71) | (153) | |
Net Unrealized Gains (Losses) on Available-for-Sale Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (175) | 103 | |
Other comprehensive income (loss) before reclassifications | 270 | (130) | |
Reclassification of certain tax effects | 21 | ||
Amounts reclassified into (out of) earnings | 0 | (1) | |
Other comprehensive income (loss) | 291 | (131) | |
Ending balance | 116 | (28) | |
Net Unrealized Losses on Hedges of Net Investments in Non-U.S. Subsidiaries | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 16 | (65) | |
Other comprehensive income (loss) before reclassifications | 23 | (36) | |
Reclassification of certain tax effects | (3) | ||
Amounts reclassified into (out of) earnings | 0 | 0 | |
Other comprehensive income (loss) | 20 | (36) | |
Ending balance | 36 | (101) | |
Other-Than-Temporary Impairment on Held-to-Maturity Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (2) | (6) | |
Other comprehensive income (loss) before reclassifications | 1 | 1 | |
Reclassification of certain tax effects | (1) | ||
Amounts reclassified into (out of) earnings | (1) | (1) | |
Other comprehensive income (loss) | (1) | 0 | |
Ending balance | (3) | (6) | |
Net Unrealized Losses on Retirement Plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (143) | (170) | |
Other comprehensive income (loss) before reclassifications | 0 | 0 | |
Reclassification of certain tax effects | (28) | ||
Amounts reclassified into (out of) earnings | (8) | 12 | |
Other comprehensive income (loss) | (36) | 12 | |
Ending balance | (179) | (158) | |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (963) | (815) | |
Other comprehensive income (loss) before reclassifications | (49) | 187 | |
Reclassification of certain tax effects | (67) | ||
Amounts reclassified into (out of) earnings | 0 | 0 | |
Other comprehensive income (loss) | (116) | 187 | |
Ending balance | $ (1,079) | $ (628) | |
[1] | (1) Represents the reclassification from accumulated other comprehensive income into retained earnings as a result of our adoption of ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in the first quarter of 2019. |
Shareholders' Equity - Adjustme
Shareholders' Equity - Adjustments to Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Class of Stock [Line Items] | ||
Gains (losses) from sales of available-for-sale securities, net | $ 0 | $ (1) |
Compensation and employee benefits expenses | 1,229 | 1,249 |
Net income | 508 | 659 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Class of Stock [Line Items] | ||
Net income | (9) | 10 |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Available-for-Sale Securities | ||
Class of Stock [Line Items] | ||
Gains (losses) from sales of available-for-sale securities, net | 0 | (1) |
Net realized gains from sales of available-for-sale securities, taxes | 0 | (1) |
Reclassification out of Accumulated Other Comprehensive Income | Other-Than-Temporary Impairment on Securities | ||
Class of Stock [Line Items] | ||
Losses reclassified (from) to other comprehensive income | (1) | (1) |
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, taxes | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Actuarial Losses | ||
Class of Stock [Line Items] | ||
Compensation and employee benefits expenses | (8) | 12 |
Amortization of actuarial losses, taxes | $ (4) | $ 3 |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Retained earnings | $ 20,911 | $ 20,553 |
Capital ratio: required common equity tier 1 capital | 8.50% | 7.50% |
Capital ratio: required tier 1 capital | 10.00% | 9.00% |
Capital ratio: required total capital | 12.00% | 11.00% |
Basel III Advanced Approaches | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 10,586 | $ 10,565 |
Retained earnings | 20,911 | 20,606 |
Accumulated other comprehensive income (loss) | (1,168) | (1,332) |
Treasury stock, at cost | (8,969) | (8,715) |
Total | 21,360 | 21,124 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (9,294) | (9,350) |
Other adjustments | (167) | (194) |
Common equity tier 1 capital | 11,899 | 11,580 |
Preferred stock | 3,690 | 3,690 |
Tier 1 capital | 15,589 | 15,270 |
Qualifying subordinated long-term debt | 787 | 778 |
Allowance for loan and lease losses and other | 10 | 14 |
Total capital | 16,386 | 16,062 |
Credit risk | 49,451 | 47,738 |
Operational risk | 47,213 | 46,060 |
Market risk | 1,359 | 1,517 |
Total risk-weighted assets | 98,023 | 95,315 |
Adjusted quarterly average assets | $ 210,099 | $ 211,924 |
Common equity tier 1 capital | 12.10% | 12.10% |
Tier 1 capital | 15.90% | 16.00% |
Total capital | 16.70% | 16.90% |
Basel III Standardized Approach | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 10,586 | $ 10,565 |
Retained earnings | 20,911 | 20,606 |
Accumulated other comprehensive income (loss) | (1,168) | (1,332) |
Treasury stock, at cost | (8,969) | (8,715) |
Total | 21,360 | 21,124 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (9,294) | (9,350) |
Other adjustments | (167) | (194) |
Common equity tier 1 capital | 11,899 | 11,580 |
Preferred stock | 3,690 | 3,690 |
Tier 1 capital | 15,589 | 15,270 |
Qualifying subordinated long-term debt | 787 | 778 |
Allowance for loan and lease losses and other | 84 | 83 |
Total capital | 16,460 | 16,131 |
Credit risk | 102,284 | 97,303 |
Market risk | 1,359 | 1,517 |
Total risk-weighted assets | 103,643 | 98,820 |
Adjusted quarterly average assets | $ 210,099 | $ 211,924 |
Common equity tier 1 capital | 11.50% | 11.70% |
Tier 1 capital | 15.00% | 15.50% |
Total capital | 15.90% | 16.30% |
State Street Bank | Basel III Advanced Approaches | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 12,894 | $ 12,894 |
Retained earnings | 14,273 | 14,261 |
Accumulated other comprehensive income (loss) | (954) | (1,112) |
Treasury stock, at cost | 0 | 0 |
Total | 26,213 | 26,043 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (9,016) | (9,073) |
Other adjustments | (1) | (29) |
Common equity tier 1 capital | 17,196 | 16,941 |
Preferred stock | 0 | 0 |
Tier 1 capital | 17,196 | 16,941 |
Qualifying subordinated long-term debt | 785 | 776 |
Allowance for loan and lease losses and other | 6 | 11 |
Total capital | 17,987 | 17,728 |
Credit risk | 47,106 | 45,565 |
Operational risk | 44,416 | 44,494 |
Market risk | 1,359 | 1,517 |
Total risk-weighted assets | 92,881 | 91,576 |
Adjusted quarterly average assets | $ 207,417 | $ 209,413 |
Common equity tier 1 capital | 18.50% | 18.50% |
Tier 1 capital | 18.50% | 18.50% |
Total capital | 19.40% | 19.40% |
State Street Bank | Basel III Standardized Approach | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common stock and related surplus | $ 12,894 | $ 12,894 |
Retained earnings | 14,273 | 14,261 |
Accumulated other comprehensive income (loss) | (954) | (1,112) |
Treasury stock, at cost | 0 | 0 |
Total | 26,213 | 26,043 |
Goodwill and other intangible assets, net of associated deferred tax liabilities | (9,016) | (9,073) |
Other adjustments | (1) | (29) |
Common equity tier 1 capital | 17,196 | 16,941 |
Preferred stock | 0 | 0 |
Tier 1 capital | 17,196 | 16,941 |
Qualifying subordinated long-term debt | 785 | 776 |
Allowance for loan and lease losses and other | 83 | 83 |
Total capital | 18,064 | 17,800 |
Credit risk | 99,673 | 94,776 |
Market risk | 1,359 | 1,517 |
Total risk-weighted assets | 101,032 | 96,293 |
Adjusted quarterly average assets | $ 207,417 | $ 209,413 |
Common equity tier 1 capital | 17.00% | 17.60% |
Tier 1 capital | 17.00% | 17.60% |
Total capital | 17.90% | 18.50% |
Net Interest Income - Component
Net Interest Income - Components of Interest Revenue and Interest Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Interest-bearing deposits with banks | $ 119 | $ 82 | ||
U.S. Treasury and federal agencies | 369 | 255 | ||
State and political subdivisions | 12 | 52 | ||
Other investments | 122 | 159 | ||
Securities purchased under resale agreements | 98 | 77 | ||
Loans and leases | 198 | 155 | ||
Other interest-earning assets | 109 | 77 | ||
Total interest income | 1,027 | 857 | ||
Interest-bearing deposits | 171 | 63 | ||
Securities sold under repurchase agreements | 12 | 0 | ||
Other short-term borrowings | 4 | 3 | ||
Long-term debt | 106 | 97 | ||
Other interest-bearing liabilities | 61 | 51 | ||
Total interest expense | 354 | 214 | ||
Net interest income | 673 | 643 | $ 673 | $ 643 |
Processing fees and other | $ 191 | 77 | ||
Effect of Change | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net interest income | $ 15 |
Expenses - Schedule of Expenses
Expenses - Schedule of Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Expenses [Abstract] | ||
Professional services | $ 80 | $ 79 |
Sales advertising public relations | 27 | 26 |
Insurance | 22 | 32 |
Regulatory fees and assessments | 18 | 27 |
Bank operations | 11 | 17 |
Other | 117 | 99 |
Total other expenses | $ 275 | $ 280 |
Expenses - Narrative (Details)
Expenses - Narrative (Details) - USD ($) | 3 Months Ended | 39 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2021 | |
State Street Beacon | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring accruals released | $ 4,000,000 | ||
Restructuring charges | (4,000,000) | $ 0 | |
Charles River Development | |||
Restructuring Cost and Reserve [Line Items] | |||
Acquisitions costs | $ 13,000,000 | ||
Charles River Development | Forecast | |||
Restructuring Cost and Reserve [Line Items] | |||
Acquisitions costs | $ 200,000,000 |
Expenses - Restructuring Reserv
Expenses - Restructuring Reserve (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 341,000,000 | $ 201,000,000 |
Payments and Other Adjustments | (78,000,000) | (26,000,000) |
Ending balance | 259,000,000 | 175,000,000 |
Employee Related Costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 303,000,000 | 166,000,000 |
Payments and Other Adjustments | (53,000,000) | (22,000,000) |
Ending balance | 246,000,000 | 144,000,000 |
Real Estate Actions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 37,000,000 | 32,000,000 |
Payments and Other Adjustments | (25,000,000) | (4,000,000) |
Ending balance | 12,000,000 | 28,000,000 |
Asset and Other Write-offs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 1,000,000 | 3,000,000 |
Payments and Other Adjustments | 0 | 0 |
Ending balance | 1,000,000 | 3,000,000 |
State Street Beacon | ||
Restructuring Reserve [Roll Forward] | ||
Accruals | (4,000,000) | 0 |
State Street Beacon | Employee Related Costs | ||
Restructuring Reserve [Roll Forward] | ||
Accruals | (4,000,000) | 0 |
State Street Beacon | Real Estate Actions | ||
Restructuring Reserve [Roll Forward] | ||
Accruals | 0 | 0 |
State Street Beacon | Asset and Other Write-offs | ||
Restructuring Reserve [Roll Forward] | ||
Accruals | $ 0 | $ 0 |
Occupancy Expense and Informa_3
Occupancy Expense and Information Systems and Communications Expense - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Lease liabilities | $ 1,220 | |
Depreciation and amortization | 205 | |
Finance lease right-of-use asset | 94 | |
Finance lease liability | 160 | |
Interest on lease liabilities | 3 | |
Accumulated amortization of finance lease right-of-use asset | 40 | |
Right-of-use assets | 899 | |
Lease liabilities | 1,060 | |
Operating leases not yet commenced | $ 497 | |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | $ 910 | |
Lease liabilities | $ 1,060 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases not yet commenced, lease terms | 11 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases not yet commenced, lease terms | 15 years |
Occupancy Expense and Informa_4
Occupancy Expense and Information Systems and Communications Expense - Summary of Lease Cost (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Finance lease: | |
Amortization of right-of-use assets | $ 5 |
Interest on lease liabilities | 3 |
Total finance lease expense | 8 |
Sublease income | (2) |
Net finance lease expense | 6 |
Operating lease: | |
Operating lease expense | 44 |
Sublease income | (1) |
Net operating lease expense | 43 |
Net lease expense | 49 |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from finance leases | 3 |
Operating cash flows from operating leases | 51 |
Financing cash flows from finance leases | 31 |
Right-of-use assets obtained in exchange for new lease obligations: | |
Operating leases | 29 |
Finance leases | $ 0 |
Occupancy Expense and Informa_5
Occupancy Expense and Information Systems and Communications Expense - Summary of Future Minimum Lease Payments (Details) $ in Millions | Mar. 31, 2019USD ($) |
Operating Leases | |
2019 (excluding the first quarter of 2019) | $ 144 |
2020 | 185 |
2021 | 174 |
2022 | 151 |
2023 | 131 |
Thereafter | 400 |
Total future minimum lease payments | 1,185 |
Less imputed interest | (125) |
Total | 1,060 |
Finance Leases | |
2019 (excluding the first quarter of 2019) | 31 |
2020 | 42 |
2021 | 42 |
2022 | 42 |
2023 | 30 |
Thereafter | 0 |
Total future minimum lease payments | 187 |
Less imputed interest | (27) |
Total | 160 |
2019 (excluding the first quarter of 2019) | 175 |
2020 | 227 |
2021 | 216 |
2022 | 193 |
2023 | 161 |
Thereafter | 400 |
Total future minimum lease payments | 1,372 |
Less imputed interest | (152) |
Total | $ 1,220 |
Occupancy Expense and Informa_6
Occupancy Expense and Information Systems and Communications Expense - Summary of Other Lease Information (Details) | Mar. 31, 2019 |
Weighted-average remaining lease term (in years): | |
Finance leases | 4 years 6 months |
Operating leases | 7 years 9 months 18 days |
Weighted-average discount rate: | |
Finance leases | 7.00% |
Operating leases | 3.00% |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 508 | $ 659 |
Preferred stock dividends | (55) | (55) |
Dividends and undistributed earnings allocated to participating securities | (1) | (1) |
Net income available to common shareholders | $ 452 | $ 603 |
Basic average common shares | 377,915 | 367,439 |
Effect of dilutive securities: common stock options and common stock awards (in shares) | 3,788 | 5,180 |
Diluted average common shares | 381,703 | 372,619 |
Anti-dilutive securities (in shares) | 1,951 | 0 |
Earnings per common share: | ||
Basic (in USD per share) | $ 1.20 | $ 1.64 |
Diluted (in USD per share) | $ 1.18 | $ 1.62 |
Line of Business Information -
Line of Business Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019line_of_business | |
Segment Reporting [Abstract] | |
Number of lines of business | 2 |
Line of Business Information _2
Line of Business Information - Summary of Line of Business (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Servicing fees | $ 1,251 | $ 1,421 | ||
Management fees | 420 | 472 | ||
Foreign exchange trading services | 280 | 304 | ||
Securities finance | 118 | 141 | ||
Processing fees and other | 191 | 77 | ||
Total fee revenue | 2,260 | 2,415 | ||
Net interest income | 673 | 643 | $ 673 | $ 643 |
Gains (losses) related to investment securities, net | (1) | (2) | ||
Total revenue | 2,932 | 3,056 | ||
Total expenses | 2,293 | 2,268 | ||
Income before income taxes | $ 635 | $ 788 | ||
Pre-tax margin | 22.00% | 26.00% | ||
Operating Segments | Investment Servicing | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fees | $ 1,251 | $ 1,421 | ||
Management fees | 0 | 0 | ||
Foreign exchange trading services | 246 | 274 | ||
Securities finance | 117 | 141 | ||
Processing fees and other | 180 | 77 | ||
Total fee revenue | 1,794 | 1,913 | ||
Net interest income | 679 | 648 | ||
Gains (losses) related to investment securities, net | (1) | (2) | ||
Total revenue | 2,472 | 2,559 | ||
Total expenses | 1,864 | 1,870 | ||
Income before income taxes | $ 604 | $ 689 | ||
Pre-tax margin | 24.00% | 27.00% | ||
Operating Segments | Investment Management | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fees | $ 0 | $ 0 | ||
Management fees | 420 | 472 | ||
Foreign exchange trading services | 34 | 30 | ||
Securities finance | 1 | 0 | ||
Processing fees and other | 11 | 0 | ||
Total fee revenue | 466 | 502 | ||
Net interest income | (6) | (5) | ||
Gains (losses) related to investment securities, net | 0 | 0 | ||
Total revenue | 460 | 497 | ||
Total expenses | 406 | 398 | ||
Income before income taxes | $ 54 | $ 99 | ||
Pre-tax margin | 12.00% | 20.00% | ||
Other | ||||
Segment Reporting Information [Line Items] | ||||
Servicing fees | $ 0 | $ 0 | ||
Management fees | 0 | 0 | ||
Foreign exchange trading services | 0 | 0 | ||
Securities finance | 0 | 0 | ||
Processing fees and other | 0 | 0 | ||
Total fee revenue | 0 | 0 | ||
Net interest income | 0 | 0 | ||
Gains (losses) related to investment securities, net | 0 | 0 | ||
Total revenue | 0 | 0 | ||
Total expenses | 23 | 0 | ||
Income before income taxes | $ (23) | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)line_of_business | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of lines of business | line_of_business | 2 | |
Accrued Interest and Fees Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables related to contracts with customers | $ | $ 2,800 | $ 2,750 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Servicing fees | $ 1,251 | $ 1,421 | ||
Management fees | 420 | 472 | ||
Foreign exchange trading services | 280 | 304 | ||
Securities finance | 118 | 141 | ||
Processing fees and other | 191 | 77 | ||
Total fee revenue | 2,260 | 2,415 | ||
Net interest income | 673 | 643 | $ 673 | $ 643 |
Gains (losses) related to investment securities, net | (1) | (2) | ||
Total revenue | 2,932 | 3,056 | ||
Servicing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Servicing fees | 1,251 | 1,421 | ||
Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Management fees | 420 | 472 | ||
Foreign exchange trading services | ||||
Disaggregation of Revenue [Line Items] | ||||
Foreign exchange trading services | 280 | 304 | ||
Securities finance | ||||
Disaggregation of Revenue [Line Items] | ||||
Securities finance | 118 | 141 | ||
Processing fees and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Processing fees and other | 191 | 77 | ||
Total fee revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total fee revenue | 2,260 | 2,415 | ||
Net interest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Net interest income | 673 | 643 | ||
Gains (losses) related to investment securities, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Gains (losses) related to investment securities, net | (1) | (2) | ||
Operating Segments | Investment Servicing | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 1,523 | 1,612 | ||
All other revenue | 949 | 947 | ||
Servicing fees | 1,251 | 1,421 | ||
Management fees | 0 | 0 | ||
Foreign exchange trading services | 246 | 274 | ||
Securities finance | 117 | 141 | ||
Processing fees and other | 180 | 77 | ||
Total fee revenue | 1,794 | 1,913 | ||
Net interest income | 679 | 648 | ||
Gains (losses) related to investment securities, net | (1) | (2) | ||
Total revenue | 2,472 | 2,559 | ||
Operating Segments | Investment Servicing | Servicing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 1,251 | 1,421 | ||
All other revenue | 0 | 0 | ||
Servicing fees | 1,251 | 1,421 | ||
Operating Segments | Investment Servicing | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | 0 | 0 | ||
Management fees | 0 | 0 | ||
Operating Segments | Investment Servicing | Foreign exchange trading services | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 86 | 95 | ||
All other revenue | 160 | 179 | ||
Foreign exchange trading services | 246 | 274 | ||
Operating Segments | Investment Servicing | Securities finance | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 70 | 77 | ||
All other revenue | 47 | 64 | ||
Securities finance | 117 | 141 | ||
Operating Segments | Investment Servicing | Processing fees and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 116 | 19 | ||
All other revenue | 64 | 58 | ||
Processing fees and other | 180 | 77 | ||
Operating Segments | Investment Servicing | Total fee revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 1,523 | 1,612 | ||
All other revenue | 271 | 301 | ||
Total fee revenue | 1,794 | 1,913 | ||
Operating Segments | Investment Servicing | Net interest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | 679 | 648 | ||
Net interest income | 679 | 648 | ||
Operating Segments | Investment Servicing | Gains (losses) related to investment securities, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | (1) | (2) | ||
Gains (losses) related to investment securities, net | (1) | (2) | ||
Operating Segments | Investment Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 454 | 502 | ||
All other revenue | 6 | (5) | ||
Servicing fees | 0 | 0 | ||
Management fees | 420 | 472 | ||
Foreign exchange trading services | 34 | 30 | ||
Securities finance | 1 | 0 | ||
Processing fees and other | 11 | 0 | ||
Total fee revenue | 466 | 502 | ||
Net interest income | (6) | (5) | ||
Gains (losses) related to investment securities, net | 0 | 0 | ||
Total revenue | 460 | 497 | ||
Operating Segments | Investment Management | Servicing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | 0 | 0 | ||
Servicing fees | 0 | 0 | ||
Operating Segments | Investment Management | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 420 | 472 | ||
All other revenue | 0 | 0 | ||
Management fees | 420 | 472 | ||
Operating Segments | Investment Management | Foreign exchange trading services | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 34 | 30 | ||
All other revenue | 0 | 0 | ||
Foreign exchange trading services | 34 | 30 | ||
Operating Segments | Investment Management | Securities finance | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | 1 | 0 | ||
Securities finance | 1 | 0 | ||
Operating Segments | Investment Management | Processing fees and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | 11 | 0 | ||
Processing fees and other | 11 | 0 | ||
Operating Segments | Investment Management | Total fee revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 454 | 502 | ||
All other revenue | 12 | 0 | ||
Total fee revenue | 466 | 502 | ||
Operating Segments | Investment Management | Net interest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | (6) | (5) | ||
Net interest income | (6) | (5) | ||
Operating Segments | Investment Management | Gains (losses) related to investment securities, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 revenue | 0 | 0 | ||
All other revenue | 0 | 0 | ||
Gains (losses) related to investment securities, net | 0 | 0 | ||
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Servicing fees | 0 | 0 | ||
Management fees | 0 | 0 | ||
Foreign exchange trading services | 0 | 0 | ||
Securities finance | 0 | 0 | ||
Processing fees and other | 0 | 0 | ||
Total fee revenue | 0 | 0 | ||
Net interest income | 0 | 0 | ||
Gains (losses) related to investment securities, net | 0 | 0 | ||
Total revenue | $ 0 | 0 | ||
Effect of Change | ||||
Disaggregation of Revenue [Line Items] | ||||
Net interest income | 15 | |||
Effect of Change | Processing fees and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Processing fees and other | (15) | |||
Effect of Change | Net interest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Net interest income | $ 15 |
Non-U.S. Activities - Schedule
Non-U.S. Activities - Schedule Of Results From Non-U.S. Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 2,932 | $ 3,056 |
Income before income taxes | 635 | 788 |
Non-U.S. | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 1,231 | 1,321 |
Income before income taxes | 249 | 395 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 1,701 | 1,735 |
Income before income taxes | $ 386 | $ 393 |
Non-U.S. Activities - Narrative
Non-U.S. Activities - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Segment Reporting Information [Line Items] | |||
Total assets | $ 228,332 | $ 244,596 | |
Non-U.S. | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 77,730 | $ 78,490 |