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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Massachusetts
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04-2456637
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(State or other jurisdiction of incorporation)
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(I.R.S. Employer Identification No.)
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One Lincoln Street
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Boston,
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Massachusetts
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02111
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(617)
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786-3000
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(Address of principal executive offices, and Zip Code)
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(Registrant’s telephone number, including area code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common stock, $1 par value per share
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STT
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New York Stock Exchange
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Depositary Shares, each representing a 1/4,000th ownership interest in a share of
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STT.PRC
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New York Stock Exchange
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Non-Cumulative Perpetual Preferred Stock, Series C, without par value per share
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Depositary Shares, each representing a 1/4,000th ownership interest in a share of
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STT.PRD
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New York Stock Exchange
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Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D, without par value per share
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Depositary Shares, each representing a 1/4,000th ownership interest in a share of
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STT.PRE
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New York Stock Exchange
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Non-Cumulative Perpetual Preferred Stock, Series E, without par value per share
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Depositary Shares, each representing a 1/4,000th ownership interest in a share of
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STT.PRG
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New York Stock Exchange
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Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series G, without par value per share
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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PART I. FINANCIAL INFORMATION
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Page
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Management's Discussion and Analysis of Financial Condition and Results of Operations
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General
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Overview of Financial Results
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Consolidated Results of Operations
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Total Revenue
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Expenses
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Income Tax Expense
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Line of Business Information
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Investment Servicing
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Investment Management
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Financial Condition
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Investment Securities
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Loans and Leases
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Cross-Border Outstandings
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Risk Management
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Credit Risk Management
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Liquidity Risk Management
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Operational Risk Management
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Information Technology Risk Management
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Market Risk Management
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Model Risk Management
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Strategic Risk Management
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Capital
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Off-Balance Sheet Arrangements
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Recent Accounting Developments
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Quantitative and Qualitative Disclosures About Market Risk
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Controls and Procedures
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•
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accounting for fair value measurements;
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impairment of goodwill and other intangible assets; and
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•
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contingencies.
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the financial strength of the counterparties with which we or our clients do business and to which we have investment, credit or financial exposures or to which our clients have such exposures as a result of our acting as agent, including as an asset manager or securities lending agent;
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increases in the volatility of, or declines in the level of, our NII; changes in the composition or valuation of the assets recorded in our consolidated statement of condition (and our ability to measure the fair value of investment securities); and changes in the manner in which we fund those assets;
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•
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the volatility of servicing fee, management fee, trading fee and securities finance revenues due to, among other factors, the value of equity and fixed-income markets, market interest and FX rates, the volume of client transaction activity, competitive pressures in the investment servicing and asset management industries, and the timing of revenue recognition with respect to processing fees and other revenues;
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•
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the liquidity of the U.S. and international securities markets, particularly the markets for fixed-income securities and inter-bank credits; the liquidity of the assets on our balance sheet and changes or volatility in the sources of such funding, particularly the deposits of our clients; and demands upon our liquidity, including the liquidity demands and requirements of our clients;
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•
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the level, volatility and uncertainty of interest rates; the expected discontinuation of Interbank Offered Rates including London Interbank Offered Rate (LIBOR); the valuation of the U.S. dollar relative to other currencies in which we record revenue or accrue expenses; the performance and volatility of securities, credit, currency and other markets in the U.S. and internationally; and the impact of monetary and fiscal policy in the U.S. and internationally on prevailing rates of interest and currency exchange rates in the markets in which we provide services to our clients;
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•
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the credit quality, credit-agency ratings and fair values of the securities in our investment securities portfolio, a deterioration or downgrade of which could lead to OTTI of such securities and the recognition of an impairment loss in our consolidated statement of income;
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our ability to attract deposits and other low-cost,
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the manner and timing with which the Federal Reserve and other U.S. and non-U.S. regulators implement or reevaluate the regulatory framework applicable to our operations (as well as changes to that framework), including implementation or modification of the Dodd-Frank Act and related stress testing and resolution planning requirements and implementation of international standards applicable to financial institutions, such as those proposed by the Basel Committee and European legislation (such as Undertakings for Collective Investments in Transferable Securities (UCITS) V, the Money Market Fund Regulation and the Markets in Financial Instruments Directive (MiFID II)/Markets in Financial Instruments Regulation (MiFIR)); among other consequences, these regulatory changes impact the levels of regulatory capital, long-term debt and liquidity we must maintain, acceptable levels of credit exposure to third parties, margin requirements applicable to derivatives, restrictions on banking and financial activities and the manner in which we structure and implement our global operations and servicing relationships. In addition, our regulatory posture and related expenses have been and will continue to be affected by heightened standards and changes in regulatory expectations for global systemically important financial institutions applicable to, among other things, risk management, liquidity and capital planning, resolution planning and compliance programs, as well as changes in governmental enforcement approaches to perceived failures to comply with regulatory or legal obligations;
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•
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adverse changes in the regulatory ratios that we are, or will be, required to meet, whether arising under the Dodd-Frank Act or implementation of international standards applicable to financial institutions, such as those proposed by the Basel Committee, or due to changes in regulatory positions, practices or regulations in jurisdictions in which we engage in banking activities, including changes in internal or external data, formulae, models, assumptions or other advanced systems used in the calculation of our capital or liquidity ratios that cause changes in those ratios as they are measured from period to period;
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requirements to obtain the prior approval or non-objection of the Federal Reserve or other U.S. and non-U.S. regulators for the use, allocation or
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•
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changes in law or regulation, or the enforcement of law or regulation, that may adversely affect our business activities or those of our clients or our counterparties, and the products or services that we sell, including, without limitation, additional or increased taxes or assessments thereon, capital adequacy requirements, margin requirements and changes that expose us to risks related to the adequacy of our controls or compliance programs;
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•
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economic or financial market disruptions in the U.S. or internationally, including those which may result from recessions or political instability; for example, the U.K.'s exit from the European Union or actual or potential changes in trade policy, such as tariffs or bilateral and multilateral trade agreements;
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•
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our ability to create cost efficiencies through changes in our operational processes and to further digitize our processes and interfaces with our clients, any failure of which, in whole or in part, may among other things, reduce our competitive position, diminish the cost-effectiveness of our systems and processes or provide an insufficient return on our associated investment;
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our ability to promote a strong culture of risk management, operating controls, compliance oversight, ethical behavior and governance that meets our expectations and those of our clients and our regulators, and the financial, regulatory, reputational and other consequences of our failure to meet such expectations;
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the impact on our compliance and controls enhancement programs associated with the appointment of a monitor under the deferred prosecution agreement with the DOJ and compliance consultant appointed under a settlement with the SEC, including the potential for such monitor and compliance consultant to require changes to our programs or to identify other issues that require substantial expenditures, changes in our operations, payments to clients or reporting to U.S. authorities;
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the results of our review of our billing practices, including additional findings or amounts we may be required to reimburse clients, as well as potential consequences of such review, including damage to our client relationships or our reputation and adverse actions or penalties
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our ability to expand our use of technology to enhance the efficiency, accuracy and reliability of our operations and our dependencies on information technology; to replace and consolidate systems, particularly those relying upon older technology, and to adequately incorporate resiliency and business continuity into our systems management; to implement robust management processes into our technology development and maintenance programs; and to control risks related to use of technology, including cyber-crime and inadvertent data disclosures;
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our ability to identify and address threats to our information technology infrastructure and systems (including those of our third-party service providers); the effectiveness of our and our third party service providers' efforts to manage the resiliency of the systems on which we rely; controls regarding the access to, and integrity of, our and our clients' data; and complexities and costs of protecting the security of such systems and data;
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the results of, and costs associated with, governmental or regulatory inquiries and investigations, litigation and similar claims, disputes, or civil or criminal proceedings;
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changes or potential changes in the amount of compensation we receive from clients for our services, and the mix of services provided by us that clients choose;
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the large institutional clients on which we focus are often able to exert considerable market influence and have diverse investment activities, and this, combined with strong competitive market forces, subjects us to significant pressure to reduce the fees we charge, to potentially significant changes in our AUC/A or our AUM in the event of the acquisition or loss of a client, in whole or in part, and to potentially significant changes in our revenue in the event a client re-balances or changes its investment approach, re-directs assets to lower- or higher-fee asset classes or changes the mix of products or services that it receives from us;
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•
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the potential for losses arising from our investments in sponsored investment funds;
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•
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the possibility that our clients will incur substantial losses in investment pools for which we act as agent; the possibility of significant reductions in the liquidity or valuation of assets underlying those pools and the potential that clients will seek to hold us liable for such losses; and the possibility that our clients or regulators will assert claims that our fees, with respect to such investment products, are not appropriate;
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our ability to anticipate and manage the level and timing of redemptions and withdrawals from our collateral pools and other collective investment products;
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the credit agency ratings of our debt and depositary obligations and investor and client perceptions of our financial strength;
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adverse publicity, whether specific to us or regarding other industry participants or industry-wide factors, or other reputational harm;
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our ability to control operational risks, data security breach risks and outsourcing risks; our ability to protect our intellectual property rights; the possibility of errors in the quantitative models we use to manage our business; and the possibility that our controls will prove insufficient, fail or be circumvented;
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•
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changes or potential changes to the competitive environment, due to, among other things, regulatory and technological changes, the effects of industry consolidation and perceptions of us, as a suitable service provider or counterparty;
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our ability to complete acquisitions, joint ventures and divestitures, including, without limitation, our ability to obtain regulatory approvals, the ability to arrange financing as required and the ability to satisfy closing conditions;
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the risks that our acquired businesses, including, without limitation, our acquisition of Charles River Systems, Inc. (CRD), and joint ventures will not achieve their anticipated financial, operational and product innovation benefits or will not be integrated successfully, or that the integration will take longer than anticipated; that expected synergies will not be achieved or unexpected negative synergies or liabilities will be experienced; that client and deposit retention goals will not be met; that other regulatory or operational challenges will be experienced; and that disruptions from the transaction will harm our relationships with our clients, our employees or regulators;
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•
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our ability to integrate CRD's front office software solutions with our middle and back office capabilities to develop a front-to-middle-to-back office platform that is competitive, generates revenues in line with our expectations and meets our clients' requirements;
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our ability to recognize evolving needs of our clients and to develop products that are responsive to such trends and profitable to us; the performance of and demand for the products and services we offer; and the potential for new products and services to impose additional costs on us and expose us to increased operational risk;
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•
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our ability to grow revenue, manage expenses,
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changes in accounting standards and practices; and
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the impact of the U.S. tax legislation enacted in 2017, and changes in tax legislation and in the interpretation of existing tax laws by U.S. and non-U.S. tax authorities that affect the amount of taxes due.
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TABLE 1: OVERVIEW OF FINANCIAL RESULTS
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Three Months Ended September 30,
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(Dollars in millions, except per share amounts)
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2019
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2018
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% Change
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Total fee revenue(1)
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$
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2,259
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$
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2,318
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(3
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)%
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Net interest income
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644
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672
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(4
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)
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Gains (losses) related to investment securities, net
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—
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(1
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)
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nm
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Total revenue(1)
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2,903
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|
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2,989
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(3
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)
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Provision for loan losses
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2
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|
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5
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|
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(60
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)
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||
Total expenses(1)
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2,180
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|
|
2,091
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|
4
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Income before income tax expense
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721
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|
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893
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(19
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)
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Income tax expense
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138
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129
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7
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Net income
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$
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583
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$
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764
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(24
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)
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Adjustments to net income:
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|||||
Dividends on preferred stock(2)
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$
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(55
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)
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$
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(55
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)
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—
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Earnings allocated to participating securities(3)
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—
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(1
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)
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(100
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)
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Net income available to common shareholders
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$
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528
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$
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708
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(25
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)
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Earnings per common share:
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Basic
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$
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1.44
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$
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1.89
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(24
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)
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Diluted
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1.42
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1.87
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(24
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)
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Average common shares outstanding (in thousands):
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|||||
Basic
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366,732
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374,963
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(2
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)
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Diluted
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370,595
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379,383
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(2
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)
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Cash dividends declared per common share
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$
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.52
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$
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.47
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|
|
11
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Return on average common equity
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9.7
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%
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|
14.0
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%
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(430) bps
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Pre-tax margin
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24.8
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29.9
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(510)
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|||||
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Nine Months Ended September 30,
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(Dollars in millions, except per share amounts)
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2019
|
|
2018
|
|
% Change
|
|||||
Total fee revenue(4)
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$
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6,779
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|
|
$
|
7,128
|
|
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(5
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)%
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Net interest income
|
1,930
|
|
|
1,974
|
|
|
(2
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)
|
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Gains (losses) related to investment securities, net
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(1
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)
|
|
6
|
|
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nm
|
|
||
Total revenue(4)
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8,708
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|
|
9,108
|
|
|
(4
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)
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||
Provision for loan losses
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7
|
|
|
7
|
|
|
—
|
|
||
Total expenses(4)
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6,627
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|
|
6,529
|
|
|
2
|
|
||
Income before income tax expense
|
2,074
|
|
|
2,572
|
|
|
(19
|
)
|
||
Income tax expense
|
396
|
|
|
416
|
|
|
(5
|
)
|
||
Net income
|
$
|
1,678
|
|
|
$
|
2,156
|
|
|
(22
|
)
|
Adjustments to net income:
|
|
|
|
|
|
|||||
Dividends on preferred stock(2)
|
$
|
(160
|
)
|
|
$
|
(146
|
)
|
|
10
|
|
Earnings allocated to participating securities(3)
|
(1
|
)
|
|
(2
|
)
|
|
(50
|
)
|
||
Net income available to common shareholders
|
$
|
1,517
|
|
|
$
|
2,008
|
|
|
(24
|
)
|
Earnings per common share:
|
|
|
|
|
|
|||||
Basic
|
$
|
4.07
|
|
|
$
|
5.44
|
|
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(25
|
)
|
Diluted
|
4.03
|
|
|
5.37
|
|
|
(25
|
)
|
||
Average common shares outstanding (in thousands):
|
|
|
|
|
|
|||||
Basic
|
372,766
|
|
|
369,368
|
|
|
1
|
|
||
Diluted
|
376,361
|
|
|
374,064
|
|
|
1
|
|
||
Cash dividends declared per common share
|
$
|
1.46
|
|
|
$
|
1.31
|
|
|
11
|
|
Return on average common equity
|
9.5
|
%
|
|
13.8
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%
|
|
(430) bps
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|
||
Pre-tax Margin
|
23.8
|
|
|
28.2
|
|
|
(440)
|
|
|
|
•
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EPS of $1.42 in the third quarter of 2019 decreased 24% compared to $1.87 in the same period in 2018.
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•
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The impact of notable items in the third quarter of 2019 includes:
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◦
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acquisition costs of approximately $27 million primarily due to the CRD acquisition; and
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◦
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legal and related expenses of approximately $18 million.
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•
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There were no notable items in the third quarter of 2018.
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•
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We continue to execute against our previously announced expense savings program, which achieved $100 million in gross savings during the third quarter of 2019 through expense savings of approximately $57 million in resource discipline initiatives and $43 million in process re-engineering and automation benefits.
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In the nine months ended September 30, 2019, we achieved a total of $275 million of gross savings under our previously announced 2019 expense savings program, including approximately $145 million in resource discipline initiatives and approximately$130 million in process re-engineering and automation benefits. We expect the expense savings program to generate a total of $400 million in gross savings in 2019.
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•
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In the third quarter of 2019, return on equity of 9.7% decreased from 14.0% in the same period in 2018, primarily due to a decrease in net income available to common shareholders. Pre-tax margin of 24.8% in the third quarter of 2019 decreased from 29.9% in the same period in 2018, primarily due to a decrease in total revenue and an increase in total expenses.
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•
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Operating leverage was (7.2)% in the third quarter of 2019. Operating leverage represents the difference between the percentage change in total revenue and the percentage change in total expenses, in each case relative to the prior year period.
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•
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We repurchased $500 million of our common stock in the third quarter of 2019 under our common stock purchase program announced in June 2019. The 2019 common stock purchase program authorizes the purchase of up to a total of $2.0 billion of our common stock from July 1, 2019 through June 30, 2020 (the 2019 Program).
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•
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Total revenue and fee revenue both decreased 3% in the third quarter of 2019 compared to the same period in 2018, primarily driven by decreases in servicing fees, management fees, foreign exchange trading services and securities finance revenues and, in the case of total revenue, by NII. These decreases were partially offset by higher processing fees and other revenue in the third quarter of 2019, which includes revenue from CRD.
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◦
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Total revenues contributed by CRD in the third quarter of 2019 were approximately $81 million, including $77 million in processing fees and other revenue and $4 million in brokerage and other trading services, within foreign exchange trading services.
|
•
|
Servicing fee revenue decreased 5% in the third quarter of 2019 compared to the same period in 2018, primarily due to challenging industry conditions, including fee pressure.
|
•
|
Management fee revenue decreased 6% in the third quarter of 2019 compared to the same period in 2018, primarily reflecting the run rate impact of late 2018 outflows and mix changes away from higher fee products, partially offset by higher U.S. average equity market levels.
|
•
|
Foreign exchange trading services decreased 1% in the third quarter of 2019 compared to the same period in 2018 primarily due to lower market volatility.
|
•
|
Securities finance revenue decreased 9% in the third quarter of 2019 compared to the same period in 2018, primarily driven by balance sheet optimization efforts in the second half of 2018.
|
•
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Processing fees and other revenue increased 49% in the third quarter of 2019 compared to the same period in 2018, primarily due to $77 million from CRD, which we acquired in October 2018.
|
•
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NII decreased 4% in the third quarter of 2019 compared to the same period in 2018, primarily due to lower long-end rates and MBS premium amortization, as well as mix shift away from non-interest-bearing deposits.
|
•
|
Total expenses increased 4% in the third quarter of 2019 compared to the same period in 2018, primarily reflecting the impact of the CRD acquisition and notable items, partially offset by savings from our previously announced 2019 expense savings program.
|
◦
|
Total expenses contributed by CRD in the third quarter of 2019 were approximately $56 million, including $42 million in compensation and employee benefits and $14 million in other expense lines. In addition, CRD-related expenses in the third quarter of 2019 included $17 million in amortization of other intangible assets.
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•
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AUC/A decreased 3% as of September 30, 2019 compared to September 30, 2018, primarily due to a previously announced client transition, partially offset by higher end of period fixed income market levels. In the third quarter of 2019, newly announced asset servicing mandates totaled approximately $1.03 trillion, primarily driven by additional services for an existing large asset manager client. Servicing assets remaining to be installed in future periods totaled approximately $1.17 trillion as of September 30, 2019.
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•
|
AUM increased 5% as of September 30, 2019 compared to September 30, 2018, primarily due to higher end of period market levels and net inflows driven by institutional, cash and ETF inflows.
|
•
|
In the third quarter of 2019, we returned a total of approximately $690 million to our shareholders in the form of common stock dividends and share purchases.
|
◦
|
We declared aggregate common stock dividends of $0.52 per share, totaling $189 million in the third quarter of 2019, compared to $0.47 per share, totaling $179 million in the third quarter of 2018, representing an increase of approximately 11% on a per share basis.
|
◦
|
In the third quarter of 2019, we acquired 9.4 million shares of common stock at an average per share cost of $53.15 and an aggregate cost of approximately $500 million under the 2019 Program.
|
•
|
In June 2019, the Federal Reserve issued a non-objection to our capital plan included as part of our 2019 CCAR submission. Pursuant to that plan, our Board authorized a new common stock purchase program in June 2019 for the purchase of up to a total of $2.0 billion of our common stock from July 1, 2019 through June 30, 2020 (the 2019 Program) and we increased our quarterly common stock dividend to $0.52 per share in the third quarter of 2019.
|
•
|
Our standardized CET1 capital ratio decreased to 11.3% as of September 30, 2019 compared to 11.7% as of December 31, 2018, and Tier 1 leverage ratio increased to 7.4% as of September 30, 2019 compared to 7.2% as of December 31, 2018.
|
TABLE 2: TOTAL REVENUE
|
||||||||||
|
Three Months Ended September 30,
|
|
|
|||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
% Change
|
|||||
Fee revenue:
|
|
|
|
|
|
|||||
Servicing fees
|
$
|
1,272
|
|
|
$
|
1,333
|
|
|
(5
|
)%
|
Management fees
|
445
|
|
|
474
|
|
|
(6
|
)
|
||
Foreign exchange trading services(1)
|
284
|
|
|
288
|
|
|
(1
|
)
|
||
Securities finance
|
116
|
|
|
128
|
|
|
(9
|
)
|
||
Processing fees and other(1)
|
142
|
|
|
95
|
|
|
49
|
|
||
Total fee revenue(1)
|
2,259
|
|
|
2,318
|
|
|
(3
|
)
|
||
Net interest income:
|
|
|
|
|
|
|||||
Interest income
|
1,001
|
|
|
916
|
|
|
9
|
|
||
Interest expense
|
357
|
|
|
244
|
|
|
46
|
|
||
Net interest income
|
644
|
|
|
672
|
|
|
(4
|
)
|
||
Gains (losses) related to investment securities, net
|
—
|
|
|
(1
|
)
|
|
nm
|
|
||
Total revenue(1)
|
$
|
2,903
|
|
|
$
|
2,989
|
|
|
(3
|
)
|
|
|
|
|
|
|
|||||
|
Nine Months Ended September 30,
|
|
|
|||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
% Change
|
|||||
Fee revenue:
|
|
|
|
|
|
|||||
Servicing fees
|
$
|
3,775
|
|
|
$
|
4,135
|
|
|
(9
|
)%
|
Management fees
|
1,306
|
|
|
1,411
|
|
|
(7
|
)
|
||
Foreign exchange trading services(2)
|
837
|
|
|
907
|
|
|
(8
|
)
|
||
Securities finance
|
360
|
|
|
423
|
|
|
(15
|
)
|
||
Processing fees and other(2)
|
501
|
|
|
252
|
|
|
99
|
|
||
Total fee revenue(2)
|
6,779
|
|
|
7,128
|
|
|
(5
|
)
|
||
Net interest income:
|
|
|
|
|
|
|||||
Interest income
|
3,035
|
|
|
2,680
|
|
|
13
|
|
||
Interest expense
|
1,105
|
|
|
706
|
|
|
57
|
|
||
Net interest income
|
1,930
|
|
|
1,974
|
|
|
(2
|
)
|
||
Gains (losses) related to investment securities, net
|
(1
|
)
|
|
6
|
|
|
nm
|
|
||
Total revenue(2)
|
$
|
8,708
|
|
|
$
|
9,108
|
|
|
(4
|
)
|
|
|
•
|
A 10% increase or decrease in worldwide equity valuations, on a weighted average basis, over the relevant periods for which our servicing fees are calculated, would result in a corresponding change in our total servicing fee revenues, on average and over time, of approximately 3%; and
|
•
|
A 10% increase or decrease in worldwide fixed income valuations, on a weighted average basis, over the relevant periods for which our servicing fees are calculated, would result in a corresponding change in our total servicing fee revenues, on average and over time, of approximately 1%.
|
TABLE 3: DAILY AVERAGES, MONTH-END AVERAGES AND QUARTER-END EQUITY INDICES(1)
|
||||||||||||||||||||||||||
|
Daily Averages of Indices
|
|
Month-End Averages of Indices
|
|
Quarter-End Indices
|
|||||||||||||||||||||
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
|
As of September 30,
|
|||||||||||||||||||||
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
|||||||||
S&P 500®
|
2,958
|
|
|
2,850
|
|
|
4
|
%
|
|
2,961
|
|
|
2,877
|
|
|
3
|
%
|
|
2,977
|
|
|
2,914
|
|
|
2
|
%
|
MSCI EAFE®
|
1,882
|
|
|
1,964
|
|
|
(4
|
)
|
|
1,876
|
|
|
1,981
|
|
|
(5
|
)
|
|
1,889
|
|
|
1,974
|
|
|
(4
|
)
|
MSCI® Emerging Markets
|
1,014
|
|
|
1,054
|
|
|
(4
|
)
|
|
1,007
|
|
|
1,064
|
|
|
(5
|
)
|
|
1,001
|
|
|
1,048
|
|
|
(4
|
)
|
|
Daily Averages of Indices
|
|
Month-End Averages of Indices
|
||||||||||||||
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
||||||
S&P 500®
|
2,856
|
|
|
2,762
|
|
|
3
|
%
|
|
2,872
|
|
|
2,765
|
|
|
4
|
%
|
MSCI EAFE®
|
1,868
|
|
|
2,018
|
|
|
(7
|
)
|
|
1,874
|
|
|
2,016
|
|
|
(7
|
)
|
MSCI® Emerging Markets
|
1,030
|
|
|
1,132
|
|
|
(9
|
)
|
|
1,035
|
|
|
1,130
|
|
|
(8
|
)
|
|
|
|
TABLE 4: INDUSTRY ASSET FLOWS
|
|||||||
|
Three Months Ended September 30,
|
||||||
(In billions)
|
2019
|
|
2018
|
||||
North America - ICI Market Data(1)(2)(3)
|
|
|
|||||
Long-Term Funds(4)
|
$
|
(52.2
|
)
|
|
$
|
(50.4
|
)
|
Money Market
|
224.5
|
|
|
35.8
|
|
||
Exchange-Traded Fund
|
90.6
|
|
|
87.2
|
|
||
Total ICI Flows
|
$
|
262.9
|
|
|
$
|
72.6
|
|
|
|
|
|
||||
Europe - Broadridge Market Data(1)(5)(6)
|
|
|
|
||||
Long-Term Funds(4)
|
$
|
53.6
|
|
|
$
|
(16.2
|
)
|
Money Market
|
78.1
|
|
|
(21.9
|
)
|
||
Total Broadridge Flows
|
$
|
131.7
|
|
|
$
|
(38.1
|
)
|
|
|
|
•
|
A 10% increase or decrease in worldwide equity valuations, on a weighted average basis, over the relevant periods for which our management fees are calculated, would result in a corresponding change in our total management fee revenues, on average and over time, of approximately 5%; and
|
•
|
A 10% increase or decrease in worldwide fixed-income valuations, on a weighted average basis, over the relevant periods for which our management fees are calculated, would result in a corresponding change in our total management fee revenues, on average and over time, of approximately 4%.
|
TABLE 6: AVERAGE BALANCES AND INTEREST RATES - FULLY TAXABLE-EQUIVALENT BASIS(1)
|
|||||||||||||||||||||
|
Three Months Ended September 30,
|
||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||
(Dollars in millions; fully taxable-equivalent basis)
|
Average
Balance
|
|
Interest
Revenue/Expense
|
|
Average
Rate
|
|
Average
Balance
|
|
Interest
Revenue/Expense
|
|
Average
Rate
|
||||||||||
Interest-bearing deposits with banks
|
$
|
45,791
|
|
|
$
|
98
|
|
|
.85
|
%
|
|
$
|
56,513
|
|
|
$
|
94
|
|
|
.67
|
%
|
Securities purchased under resale agreements(2)
|
3,149
|
|
|
101
|
|
|
12.75
|
|
|
2,932
|
|
|
87
|
|
|
11.77
|
|
||||
Trading account assets
|
880
|
|
|
—
|
|
|
—
|
|
|
1,019
|
|
|
—
|
|
|
—
|
|
||||
Investment securities
|
93,588
|
|
|
504
|
|
|
2.16
|
|
|
85,623
|
|
|
474
|
|
|
2.21
|
|
||||
Loans and leases
|
23,926
|
|
|
195
|
|
|
3.24
|
|
|
22,511
|
|
|
176
|
|
|
3.11
|
|
||||
Other interest-earning assets
|
13,990
|
|
|
107
|
|
|
3.02
|
|
|
14,702
|
|
|
97
|
|
|
2.59
|
|
||||
Average total interest-earning assets
|
$
|
181,324
|
|
|
$
|
1,005
|
|
|
2.20
|
|
|
$
|
183,300
|
|
|
$
|
928
|
|
|
2.01
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
$
|
67,170
|
|
|
$
|
141
|
|
|
.83
|
%
|
|
$
|
57,558
|
|
|
$
|
74
|
|
|
.51
|
%
|
Non-U.S.(3)
|
61,355
|
|
|
32
|
|
|
.21
|
|
|
67,741
|
|
|
10
|
|
|
.06
|
|
||||
Total interest-bearing deposits(3)
|
128,525
|
|
|
173
|
|
|
.53
|
|
|
125,299
|
|
|
84
|
|
|
.27
|
|
||||
Securities sold under repurchase agreements
|
1,998
|
|
|
7
|
|
|
1.45
|
|
|
1,835
|
|
|
4
|
|
|
.79
|
|
||||
Federal funds purchased
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Other short-term borrowings
|
1,788
|
|
|
8
|
|
|
1.68
|
|
|
1,248
|
|
|
4
|
|
|
1.38
|
|
||||
Long-term debt
|
11,415
|
|
|
99
|
|
|
3.48
|
|
|
10,375
|
|
|
100
|
|
|
3.84
|
|
||||
Other interest-bearing liabilities
|
3,691
|
|
|
70
|
|
|
7.62
|
|
|
5,306
|
|
|
52
|
|
|
3.88
|
|
||||
Average total interest-bearing liabilities
|
$
|
147,417
|
|
|
$
|
357
|
|
|
.96
|
|
|
$
|
144,064
|
|
|
$
|
244
|
|
|
.67
|
|
Interest rate spread
|
|
|
|
|
1.24
|
%
|
|
|
|
|
|
1.34
|
%
|
||||||||
Net interest income, fully taxable-equivalent basis
|
|
|
$
|
648
|
|
|
|
|
|
|
$
|
684
|
|
|
|
||||||
Net interest margin, fully taxable-equivalent basis
|
|
|
|
|
1.42
|
%
|
|
|
|
|
|
1.48
|
%
|
||||||||
Tax-equivalent adjustment
|
|
|
(4
|
)
|
|
|
|
|
|
(12
|
)
|
|
|
||||||||
Net interest income, GAAP-basis
|
|
|
$
|
644
|
|
|
|
|
|
|
$
|
672
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||
(Dollars in millions; fully taxable-equivalent basis)
|
Average
Balance
|
|
Interest
Revenue/Expense
|
|
Average Rates
|
|
Average
Balance
|
|
Interest
Revenue/Expense
|
|
Average Rates
|
||||||||||
Interest-bearing deposits with banks
|
$
|
47,562
|
|
|
$
|
326
|
|
|
.92
|
%
|
|
$
|
54,414
|
|
|
$
|
267
|
|
|
.66
|
%
|
Securities purchased under resale agreements(2)
|
2,634
|
|
|
289
|
|
|
14.69
|
|
|
2,759
|
|
|
246
|
|
|
11.90
|
|
||||
Trading account assets
|
880
|
|
|
—
|
|
|
—
|
|
|
1,098
|
|
|
—
|
|
|
—
|
|
||||
Investment securities
|
90,617
|
|
|
1,513
|
|
|
2.23
|
|
|
89,080
|
|
|
1,435
|
|
|
2.15
|
|
||||
Loans and leases
|
23,605
|
|
|
591
|
|
|
3.35
|
|
|
23,359
|
|
|
507
|
|
|
2.90
|
|
||||
Other interest-earning assets
|
14,790
|
|
|
330
|
|
|
2.98
|
|
|
16,599
|
|
|
275
|
|
|
2.22
|
|
||||
Average total interest-earning assets
|
$
|
180,088
|
|
|
$
|
3,049
|
|
|
2.26
|
|
|
$
|
187,309
|
|
|
$
|
2,730
|
|
|
1.95
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
$
|
66,077
|
|
|
$
|
423
|
|
|
.86
|
%
|
|
$
|
52,190
|
|
|
$
|
154
|
|
|
.39
|
%
|
Non-U.S.(3)
|
60,817
|
|
|
130
|
|
|
.29
|
|
|
74,170
|
|
|
82
|
|
|
.15
|
|
||||
Total interest-bearing deposits(3)(4)
|
126,894
|
|
|
553
|
|
|
.58
|
|
|
126,360
|
|
|
236
|
|
|
.25
|
|
||||
Securities sold under repurchase agreements
|
1,754
|
|
|
27
|
|
|
2.06
|
|
|
2,361
|
|
|
11
|
|
|
.61
|
|
||||
Other short-term borrowings
|
1,664
|
|
|
18
|
|
|
1.41
|
|
|
1,274
|
|
|
12
|
|
|
1.24
|
|
||||
Long-term debt
|
11,201
|
|
|
312
|
|
|
3.71
|
|
|
10,808
|
|
|
293
|
|
|
3.62
|
|
||||
Other interest-bearing liabilities
|
4,101
|
|
|
195
|
|
|
6.39
|
|
|
5,187
|
|
|
154
|
|
|
3.97
|
|
||||
Average total interest-bearing liabilities
|
$
|
145,614
|
|
|
$
|
1,105
|
|
|
1.01
|
|
|
$
|
145,990
|
|
|
$
|
706
|
|
|
.65
|
|
Interest rate spread
|
|
|
|
|
1.25
|
%
|
|
|
|
|
|
1.30
|
%
|
||||||||
Net interest income, fully taxable-equivalent basis
|
|
|
$
|
1,944
|
|
|
|
|
|
|
$
|
2,024
|
|
|
|
||||||
Net interest margin, fully taxable-equivalent basis
|
|
|
|
|
1.44
|
%
|
|
|
|
|
|
1.45
|
%
|
||||||||
Tax-equivalent adjustment
|
|
|
(14
|
)
|
|
|
|
|
|
(50
|
)
|
|
|
||||||||
Net interest income, GAAP basis
|
|
|
$
|
1,930
|
|
|
|
|
|
|
$
|
1,974
|
|
|
|
|
|
TABLE 7: EXPENSES
|
||||||||||
|
Three Months Ended September 30,
|
|
% Change
|
|||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
||||||
Compensation and employee benefits(1)
|
$
|
1,083
|
|
|
$
|
1,103
|
|
|
(2
|
)%
|
Information systems and communications
|
376
|
|
|
332
|
|
|
13
|
%
|
||
Transaction processing services
|
254
|
|
|
248
|
|
|
2
|
%
|
||
Occupancy
|
113
|
|
|
110
|
|
|
3
|
%
|
||
Acquisition costs
|
27
|
|
|
1
|
|
|
nm
|
|
||
Restructuring charges, net
|
—
|
|
|
(1
|
)
|
|
nm
|
|
||
Amortization of other intangible assets(1)
|
59
|
|
|
47
|
|
|
26
|
%
|
||
Other:
|
|
|
|
|
|
|
||||
Professional services
|
70
|
|
|
79
|
|
|
(11
|
)%
|
||
Regulatory fees and assessments
|
18
|
|
|
14
|
|
|
29
|
%
|
||
Other
|
180
|
|
|
158
|
|
|
14
|
%
|
||
Total other
|
268
|
|
|
251
|
|
|
7
|
%
|
||
Total expenses(1)
|
$
|
2,180
|
|
|
$
|
2,091
|
|
|
4
|
%
|
Number of employees at quarter-end
|
39,407
|
|
|
39,020
|
|
|
1
|
%
|
|
||||||||||
|
Nine Months Ended September 30,
|
|
% Change
|
|||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
||||||
Compensation and employee benefits(2)
|
$
|
3,396
|
|
|
$
|
3,477
|
|
|
(2
|
)%
|
Information systems and communications
|
1,103
|
|
|
968
|
|
|
14
|
%
|
||
Transaction processing services
|
741
|
|
|
759
|
|
|
(2
|
)%
|
||
Occupancy
|
344
|
|
|
354
|
|
|
(3
|
)%
|
||
Acquisition costs
|
50
|
|
|
1
|
|
|
nm
|
|
||
Restructuring charges, net
|
(2
|
)
|
|
(1
|
)
|
|
nm
|
|
||
Amortization of other intangible assets(2)
|
178
|
|
|
145
|
|
|
23
|
|
||
Other:
|
|
|
|
|
|
|||||
Professional services
|
235
|
|
|
247
|
|
|
(5
|
)%
|
||
Regulatory fees and assessments
|
54
|
|
|
73
|
|
|
(26
|
)%
|
||
Other
|
528
|
|
|
506
|
|
|
4
|
%
|
||
Total other
|
817
|
|
|
826
|
|
|
(1
|
)%
|
||
Total expenses(2)
|
$
|
6,627
|
|
|
$
|
6,529
|
|
|
2
|
%
|
|
|
TABLE 8: RESTRUCTURING AND REPOSITIONING CHARGES
|
|||||||||||||||
(In millions)
|
Employee
Related Costs |
|
Real Estate
Actions |
|
Asset and Other Write-offs
|
|
Total
|
||||||||
Accrual balance at December 31, 2017
|
$
|
166
|
|
|
$
|
32
|
|
|
$
|
3
|
|
|
$
|
201
|
|
Payments and other adjustments
|
(22
|
)
|
|
(4
|
)
|
|
—
|
|
|
(26
|
)
|
||||
Accrual balance at March 31, 2018
|
144
|
|
|
28
|
|
|
3
|
|
|
175
|
|
||||
Accruals for repositioning charges
|
61
|
|
|
16
|
|
|
—
|
|
|
77
|
|
||||
Payments and other adjustments
|
(36
|
)
|
|
(3
|
)
|
|
—
|
|
|
(39
|
)
|
||||
Accrual balance at June 30, 2018
|
169
|
|
|
41
|
|
|
3
|
|
|
213
|
|
||||
Accruals for Beacon
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Payments and other adjustments
|
(18
|
)
|
|
(4
|
)
|
|
(1
|
)
|
|
(23
|
)
|
||||
Accrual balance at September 30, 2018
|
$
|
150
|
|
|
$
|
37
|
|
|
$
|
2
|
|
|
$
|
189
|
|
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
|
|
||||
Accruals for Beacon
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
Payments and other adjustments
|
(51
|
)
|
|
(1
|
)
|
|
—
|
|
|
(52
|
)
|
||||
Accrual balance at June 30, 2019
|
197
|
|
|
11
|
|
|
1
|
|
|
209
|
|
||||
Payments and other adjustments
|
(62
|
)
|
|
(2
|
)
|
|
—
|
|
|
(64
|
)
|
||||
Accrual balance at September 30, 2019
|
$
|
135
|
|
|
$
|
9
|
|
|
$
|
1
|
|
|
$
|
145
|
|
TABLE 9: INVESTMENT SERVICING LINE OF BUSINESS RESULTS
|
|||||||||||||||||||||
(Dollars in millions)
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
||||||||||||||
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
|||||||||||
Servicing fees
|
$
|
1,272
|
|
|
$
|
1,333
|
|
|
(5
|
)%
|
|
$
|
3,775
|
|
|
$
|
4,135
|
|
|
(9
|
)%
|
Foreign exchange trading services(1)(2)
|
249
|
|
|
255
|
|
|
(2
|
)
|
|
735
|
|
|
810
|
|
|
(9
|
)
|
||||
Securities finance
|
114
|
|
|
128
|
|
|
(11
|
)
|
|
353
|
|
|
423
|
|
|
(17
|
)
|
||||
Processing fees and other(1)(2)
|
140
|
|
|
87
|
|
|
61
|
|
|
483
|
|
|
243
|
|
|
99
|
|
||||
Total fee revenue(1)(2)
|
1,775
|
|
|
1,803
|
|
|
(2
|
)
|
|
5,346
|
|
|
5,611
|
|
|
(5
|
)
|
||||
Net interest income
|
649
|
|
|
680
|
|
|
(5
|
)
|
|
1,951
|
|
|
1,991
|
|
|
(2
|
)
|
||||
Gains (losses) related to investment securities, net
|
—
|
|
|
(1
|
)
|
|
nm
|
|
|
(1
|
)
|
|
6
|
|
|
nm
|
|
||||
Total revenue(1)(2)
|
2,424
|
|
|
2,482
|
|
|
(2
|
)
|
|
7,296
|
|
|
7,608
|
|
|
(4
|
)
|
||||
Provision for loan losses
|
2
|
|
|
5
|
|
|
nm
|
|
|
7
|
|
|
7
|
|
|
—
|
|
||||
Total expenses(1)(2)
|
1,762
|
|
|
1,705
|
|
|
3
|
|
|
5,391
|
|
|
5,279
|
|
|
2
|
|
||||
Income before income tax expense
|
$
|
660
|
|
|
$
|
772
|
|
|
(15
|
)
|
|
$
|
1,898
|
|
|
$
|
2,322
|
|
|
(18
|
)
|
Pre-tax margin
|
27
|
%
|
|
31
|
%
|
|
|
|
26
|
%
|
|
31
|
%
|
|
|
|
|
|
TABLE 10: ASSETS UNDER CUSTODY AND/OR ADMINISTRATION BY PRODUCT
|
|||||||||||
(In billions)
|
September 30, 2019
|
|
December 31, 2018
|
|
September 30, 2018
|
||||||
Collective funds
|
$
|
9,224
|
|
|
$
|
8,999
|
|
|
$
|
9,646
|
|
Mutual funds
|
8,687
|
|
|
7,912
|
|
|
8,717
|
|
|||
Insurance and other products
|
8,171
|
|
|
8,220
|
|
|
8,826
|
|
|||
Pension products
|
6,817
|
|
|
6,489
|
|
|
6,807
|
|
|||
Total
|
$
|
32,899
|
|
|
$
|
31,620
|
|
|
$
|
33,996
|
|
TABLE 11: ASSETS UNDER CUSTODY AND/OR ADMINISTRATION BY ASSET CLASS
|
|||||||||||
(In billions)
|
September 30, 2019
|
|
December 31, 2018
|
|
September 30, 2018
|
||||||
Equities
|
$
|
18,243
|
|
|
$
|
18,041
|
|
|
$
|
20,070
|
|
Fixed-income
|
10,413
|
|
|
9,758
|
|
|
10,018
|
|
|||
Short-term and other investments
|
4,243
|
|
|
3,821
|
|
|
3,908
|
|
|||
Total
|
$
|
32,899
|
|
|
$
|
31,620
|
|
|
$
|
33,996
|
|
TABLE 12: ASSETS UNDER CUSTODY AND/OR ADMINISTRATION BY GEOGRAPHY(1)
|
|||||||||||
(In billions)
|
September 30, 2019
|
|
December 31, 2018
|
|
September 30, 2018
|
||||||
Americas
|
$
|
23,888
|
|
|
$
|
23,203
|
|
|
$
|
25,157
|
|
Europe/Middle East/Africa
|
7,091
|
|
|
6,699
|
|
|
7,094
|
|
|||
Asia/Pacific
|
1,920
|
|
|
1,718
|
|
|
1,745
|
|
|||
Total
|
$
|
32,899
|
|
|
$
|
31,620
|
|
|
$
|
33,996
|
|
|
|
TABLE 13: FOREIGN EXCHANGE TRADING SERVICES
|
|||||||||||
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||
(In percentage)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
FX Trading
|
56
|
%
|
|
59
|
%
|
|
57
|
%
|
|
60
|
%
|
Brokerage and other trading services
|
44
|
|
|
41
|
|
|
43
|
|
|
40
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
•
|
Direct sales and trading: Represent FX transactions at negotiated rates with clients and investment managers that contact our trading desk directly. These principal market-making activities include transactions for funds serviced by third party custodians or prime brokers, as well as those funds under custody with us.
|
•
|
Indirect FX trading: Represents FX transactions with clients, for which we are the funds' custodian, or their investment managers, routed to our FX desk through our asset-servicing operation. We execute indirect FX trades as a principal at rates disclosed to our clients.
|
•
|
Electronic FX services: Our clients may choose to execute FX transactions through one of our electronic trading platforms. These transactions generate revenue through a “click” fee.
|
•
|
Other trading, transition management and brokerage revenue: As our clients look to us to enhance and preserve portfolio values, they may choose to utilize our Transition or Currency Management capabilities or transact with our Equity Trade execution group. These transactions, which are not limited to foreign exchange, generate revenue via commissions charged for trades transacted during the management of these portfolios.
|
|
|
TABLE 15: ASSETS UNDER MANAGEMENT BY ASSET CLASS AND INVESTMENT APPROACH
|
|||||||||||
(In billions)
|
September 30, 2019
|
|
December 31, 2018
|
|
September 30, 2018
|
||||||
Equity:
|
|||||||||||
Active
|
$
|
84
|
|
|
$
|
80
|
|
|
$
|
96
|
|
Passive
|
1,747
|
|
|
1,464
|
|
|
1,693
|
|
|||
Total equity
|
1,831
|
|
|
1,544
|
|
|
1,789
|
|
|||
Fixed-income:
|
|||||||||||
Active
|
92
|
|
|
81
|
|
|
80
|
|
|||
Passive
|
367
|
|
|
341
|
|
|
343
|
|
|||
Total fixed-income
|
459
|
|
|
422
|
|
|
423
|
|
|||
Cash(1)
|
336
|
|
|
287
|
|
|
317
|
|
|||
Multi-asset-class solutions:
|
|||||||||||
Active
|
23
|
|
|
19
|
|
|
20
|
|
|||
Passive
|
134
|
|
|
113
|
|
|
125
|
|
|||
Total multi-asset-class solutions
|
157
|
|
|
132
|
|
|
145
|
|
|||
Alternative investments(2):
|
|||||||||||
Active
|
22
|
|
|
21
|
|
|
22
|
|
|||
Passive
|
148
|
|
|
105
|
|
|
114
|
|
|||
Total alternative investments
|
170
|
|
|
126
|
|
|
136
|
|
|||
Total
|
$
|
2,953
|
|
|
$
|
2,511
|
|
|
$
|
2,810
|
|
|
|
|
|
TABLE 17: GEOGRAPHIC MIX OF ASSETS UNDER MANAGEMENT(1)
|
|||||||||||
(In billions)
|
September 30, 2019
|
|
December 31, 2018
|
|
September 30, 2018
|
||||||
North America
|
$
|
1,999
|
|
|
$
|
1,731
|
|
|
$
|
1,956
|
|
Europe/Middle East/Africa
|
476
|
|
|
421
|
|
|
476
|
|
|||
Asia/Pacific
|
478
|
|
|
359
|
|
|
378
|
|
|||
Total
|
$
|
2,953
|
|
|
$
|
2,511
|
|
|
$
|
2,810
|
|
|
|
TABLE 18: ACTIVITY IN ASSETS UNDER MANAGEMENT BY PRODUCT CATEGORY
|
|||||||||||||||||||||||
(In billions)
|
Equity
|
|
Fixed-Income
|
|
Cash(1)
|
|
Multi-Asset-Class Solutions
|
|
Alternative Investments(2)
|
|
Total
|
||||||||||||
Balance as of December 31, 2017
|
$
|
1,745
|
|
|
$
|
414
|
|
|
$
|
330
|
|
|
$
|
147
|
|
|
$
|
146
|
|
|
$
|
2,782
|
|
Long-term institutional flows, net(3)
|
(45
|
)
|
|
12
|
|
|
—
|
|
|
(3
|
)
|
|
(2
|
)
|
|
(38
|
)
|
||||||
Exchange-traded fund flows, net
|
(3
|
)
|
|
7
|
|
|
6
|
|
|
—
|
|
|
(2
|
)
|
|
8
|
|
||||||
Cash fund flows, net
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
||||||
Total flows, net
|
(48
|
)
|
|
19
|
|
|
(44
|
)
|
|
(3
|
)
|
|
(4
|
)
|
|
(80
|
)
|
||||||
Market appreciation (depreciation)
|
(142
|
)
|
|
(7
|
)
|
|
3
|
|
|
(10
|
)
|
|
(10
|
)
|
|
(166
|
)
|
||||||
Foreign exchange impact
|
(11
|
)
|
|
(4
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|
(25
|
)
|
||||||
Total market/foreign exchange impact
|
(153
|
)
|
|
(11
|
)
|
|
1
|
|
|
(12
|
)
|
|
(16
|
)
|
|
(191
|
)
|
||||||
Balance as of December 31, 2018
|
$
|
1,544
|
|
|
$
|
422
|
|
|
$
|
287
|
|
|
$
|
132
|
|
|
$
|
126
|
|
|
$
|
2,511
|
|
Long-term institutional flows, net(3)
|
42
|
|
|
(13
|
)
|
|
2
|
|
|
8
|
|
|
15
|
|
|
54
|
|
||||||
Exchange-traded fund flows, net
|
(8
|
)
|
|
11
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
10
|
|
||||||
Cash fund flows, net
|
—
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
42
|
|
||||||
Total flows, net
|
34
|
|
|
(2
|
)
|
|
44
|
|
|
8
|
|
|
22
|
|
|
106
|
|
||||||
Market appreciation (depreciation)
|
260
|
|
|
41
|
|
|
6
|
|
|
18
|
|
|
24
|
|
|
349
|
|
||||||
Foreign exchange impact
|
(7
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(13
|
)
|
||||||
Total market/foreign exchange impact
|
253
|
|
|
39
|
|
|
5
|
|
|
17
|
|
|
22
|
|
|
336
|
|
||||||
Balance as of September 30, 2019
|
$
|
1,831
|
|
|
$
|
459
|
|
|
$
|
336
|
|
|
$
|
157
|
|
|
$
|
170
|
|
|
$
|
2,953
|
|
|
|
TABLE 19: AVERAGE STATEMENT OF CONDITION(1)
|
|||||||
|
Nine Months Ended September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Assets:
|
|
|
|
||||
Interest-bearing deposits with banks
|
$
|
47,562
|
|
|
$
|
54,414
|
|
Securities purchased under resale agreements
|
2,634
|
|
|
2,759
|
|
||
Trading account assets
|
880
|
|
|
1,098
|
|
||
U.S. Treasury and federal agencies:
|
|
|
|
||||
Direct obligations
|
14,327
|
|
|
16,543
|
|
||
Mortgage-and asset-backed securities
|
41,845
|
|
|
30,795
|
|
||
State and political subdivisions
|
1,887
|
|
|
6,473
|
|
||
Other investments:
|
|
|
|
||||
Asset-backed securities
|
9,445
|
|
|
14,394
|
|
||
Collateralized mortgage-backed securities and obligations
|
923
|
|
|
1,663
|
|
||
Other debt investments and equity securities
|
22,190
|
|
|
19,212
|
|
||
Total Investment securities
|
90,617
|
|
|
89,080
|
|
||
Loans and leases
|
23,605
|
|
|
23,359
|
|
||
Other interest-earning assets
|
14,790
|
|
|
16,599
|
|
||
Average total interest-earning assets
|
180,088
|
|
|
187,309
|
|
||
Cash and due from banks
|
3,401
|
|
|
3,375
|
|
||
Other non-interest-earning assets
|
37,975
|
|
|
33,386
|
|
||
Average total assets
|
$
|
221,464
|
|
|
$
|
224,070
|
|
|
|
|
|
||||
Liabilities and shareholders’ equity:
|
|
|
|||||
Interest-bearing deposits:
|
|
|
|
||||
U.S.
|
$
|
66,077
|
|
|
$
|
52,190
|
|
Non-U.S.
|
60,817
|
|
|
74,170
|
|
||
Total interest-bearing deposits(2)
|
126,894
|
|
|
126,360
|
|
||
Securities sold under repurchase agreements
|
1,754
|
|
|
2,361
|
|
||
Other short-term borrowings
|
1,664
|
|
|
1,274
|
|
||
Long-term debt
|
11,201
|
|
|
10,808
|
|
||
Other interest-bearing liabilities
|
4,101
|
|
|
5,187
|
|
||
Average total interest-bearing liabilities
|
145,614
|
|
|
145,990
|
|
||
Non-interest-bearing deposits(2)
|
29,493
|
|
|
36,081
|
|
||
Other non-interest-bearing liabilities
|
21,353
|
|
|
19,330
|
|
||
Preferred shareholders’ equity
|
3,690
|
|
|
3,204
|
|
||
Common shareholders’ equity
|
21,314
|
|
|
19,465
|
|
||
Average total liabilities and shareholders’ equity
|
$
|
221,464
|
|
|
$
|
224,070
|
|
|
|
TABLE 20: CARRYING VALUES OF INVESTMENT SECURITIES
|
|||||||
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Available-for-sale:
|
|||||||
U.S. Treasury and federal agencies:
|
|||||||
Direct obligations
|
$
|
2,039
|
|
|
$
|
1,039
|
|
Mortgage-backed securities
|
22,379
|
|
|
15,968
|
|
||
Total U.S. Treasury and federal agencies
|
24,418
|
|
|
17,007
|
|
||
Asset-backed securities:
|
|
|
|
||||
Student loans(1)
|
471
|
|
|
541
|
|
||
Credit cards
|
90
|
|
|
583
|
|
||
Collateralized loan obligations
|
1,446
|
|
|
593
|
|
||
Total asset-backed securities
|
2,007
|
|
|
1,717
|
|
||
Non-U.S. debt securities:
|
|
|
|
||||
Mortgage-backed securities
|
1,917
|
|
|
1,682
|
|
||
Asset-backed securities
|
1,831
|
|
|
1,574
|
|
||
Government securities
|
13,189
|
|
|
12,793
|
|
||
Other
|
6,998
|
|
|
6,602
|
|
||
Total non-U.S. debt securities
|
23,935
|
|
|
22,651
|
|
||
State and political subdivisions
|
1,819
|
|
|
1,918
|
|
||
Collateralized mortgage obligations
|
113
|
|
|
197
|
|
||
Other U.S. debt securities
|
2,465
|
|
|
1,658
|
|
||
Total
|
$
|
54,757
|
|
|
$
|
45,148
|
|
|
|
|
|
||||
Held-to-maturity(2):
|
|
|
|
||||
U.S. Treasury and federal agencies:
|
|
|
|
||||
Direct obligations
|
$
|
11,781
|
|
|
$
|
14,794
|
|
Mortgage-backed securities
|
21,966
|
|
|
21,647
|
|
||
Total U.S. Treasury and federal agencies
|
33,747
|
|
|
36,441
|
|
||
Asset-backed securities:
|
|
|
|
||||
Student loans(1)
|
3,881
|
|
|
3,191
|
|
||
Credit cards
|
—
|
|
|
193
|
|
||
Other
|
—
|
|
|
1
|
|
||
Total asset-backed securities
|
3,881
|
|
|
3,385
|
|
||
Non-U.S. debt securities:
|
|
|
|
||||
Mortgage-backed securities
|
471
|
|
|
638
|
|
||
Asset-backed securities
|
—
|
|
|
223
|
|
||
Government securities
|
294
|
|
|
358
|
|
||
Other
|
—
|
|
|
46
|
|
||
Total non-U.S. debt securities
|
765
|
|
|
1,265
|
|
||
Collateralized mortgage obligations
|
726
|
|
|
823
|
|
||
Total
|
$
|
39,119
|
|
|
$
|
41,914
|
|
|
|
|
TABLE 21: INVESTMENT PORTFOLIO BY EXTERNAL CREDIT RATING
|
|||||
|
September 30, 2019
|
|
December 31, 2018
|
||
AAA(1)
|
77
|
%
|
|
76
|
%
|
AA
|
13
|
|
|
14
|
|
A
|
5
|
|
|
5
|
|
BBB
|
5
|
|
|
5
|
|
Below BBB
|
—
|
|
|
—
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
TABLE 23: NON-U.S. DEBT SECURITIES
|
|||||||
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Available-for-sale:
|
|
|
|
||||
Canada
|
$
|
2,647
|
|
|
$
|
2,185
|
|
Australia
|
2,506
|
|
|
2,847
|
|
||
United Kingdom
|
2,344
|
|
|
2,580
|
|
||
France
|
1,950
|
|
|
1,875
|
|
||
Germany
|
1,708
|
|
|
1,547
|
|
||
European(1)
|
1,482
|
|
|
1,087
|
|
||
Spain
|
1,443
|
|
|
1,504
|
|
||
Japan
|
1,376
|
|
|
1,352
|
|
||
Austria
|
1,336
|
|
|
1,312
|
|
||
Netherlands
|
1,335
|
|
|
1,116
|
|
||
Ireland
|
1,203
|
|
|
1,301
|
|
||
Italy
|
963
|
|
|
1,010
|
|
||
Belgium
|
923
|
|
|
952
|
|
||
Finland
|
739
|
|
|
789
|
|
||
Hong Kong
|
660
|
|
|
458
|
|
||
Asian(1)
|
532
|
|
|
338
|
|
||
Sweden
|
148
|
|
|
186
|
|
||
Brazil
|
89
|
|
|
—
|
|
||
Norway
|
50
|
|
|
94
|
|
||
Other(2)
|
501
|
|
|
118
|
|
||
Total
|
$
|
23,935
|
|
|
$
|
22,651
|
|
Held-to-maturity:
|
|
|
|
||||
Singapore
|
$
|
184
|
|
|
$
|
242
|
|
Australia
|
131
|
|
|
158
|
|
||
United Kingdom
|
130
|
|
|
363
|
|
||
Germany
|
109
|
|
|
115
|
|
||
Spain
|
84
|
|
|
92
|
|
||
Netherlands
|
80
|
|
|
187
|
|
||
Other(3)
|
47
|
|
|
108
|
|
||
Total
|
$
|
765
|
|
|
$
|
1,265
|
|
|
|
•
|
a pre-tax net unrealized gain of $303 million, composed of gross unrealized gains of $308 million and gross unrealized losses of $5 million, associated with non-U.S. AFS debt securities; and
|
•
|
a pre-tax net unrealized gain of $74 million, composed of gross unrealized gains of $81 million and gross unrealized losses of $7 million, associated with non-U.S. HTM debt securities.
|
TABLE 24: STATE AND MUNICIPAL OBLIGORS(1)
|
||||||||||||||
(Dollars in millions)
|
Total Municipal
Securities |
|
Credit and
Liquidity
Facilities(2)
|
|
Total
|
|
% of Total Municipal
Exposure
|
|||||||
September 30, 2019
|
|
|
|
|
|
|
||||||||
State of Issuer:
|
|
|
|
|
|
|
||||||||
Texas
|
$
|
283
|
|
|
$
|
2,378
|
|
|
$
|
2,661
|
|
|
24
|
%
|
California
|
116
|
|
|
2,016
|
|
|
2,132
|
|
|
19
|
|
|||
New York
|
272
|
|
|
1,511
|
|
|
1,783
|
|
|
16
|
|
|||
Massachusetts
|
431
|
|
|
729
|
|
|
1,160
|
|
|
10
|
|
|||
Tennessee
|
4
|
|
|
502
|
|
|
506
|
|
|
5
|
|
|||
Total
|
$
|
1,106
|
|
|
$
|
7,136
|
|
|
$
|
8,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
December 31, 2018
|
|
|
|
|
|
|
||||||||
State of Issuer:
|
|
|
|
|
|
|
||||||||
Texas
|
$
|
315
|
|
|
$
|
2,467
|
|
|
$
|
2,782
|
|
|
25
|
%
|
California
|
108
|
|
|
1,693
|
|
|
1,801
|
|
|
16
|
|
|||
New York
|
231
|
|
|
1,518
|
|
|
1,749
|
|
|
15
|
|
|||
Massachusetts
|
467
|
|
|
978
|
|
|
1,445
|
|
|
13
|
|
|||
Total
|
$
|
1,121
|
|
|
$
|
6,656
|
|
|
$
|
7,777
|
|
|
|
|
|
|
|
TABLE 25: U.S. AND NON- U.S. LOANS AND LEASES
|
|||||||
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Domestic(1):
|
|
|
|
||||
Commercial and financial
|
$
|
17,682
|
|
|
$
|
19,479
|
|
Commercial real estate
|
1,346
|
|
|
874
|
|
||
Total domestic
|
19,028
|
|
|
20,353
|
|
||
Foreign(1):
|
|
|
|
||||
Commercial and financial
|
7,981
|
|
|
5,436
|
|
||
Total foreign
|
7,981
|
|
|
5,436
|
|
||
Total loans and leases(2)
|
$
|
27,009
|
|
|
$
|
25,789
|
|
|
|
|
|
TABLE 26: ALLOWANCE FOR LOAN AND LEASE LOSSES
|
|||||||
|
Nine Months Ended September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Allowance for loan and lease losses:
|
|||||||
Beginning balance
|
$
|
67
|
|
|
$
|
54
|
|
Provision for loan and lease losses(1)
|
7
|
|
|
7
|
|
||
Charge-offs(2)
|
(2
|
)
|
|
(1
|
)
|
||
Other(3)
|
(1
|
)
|
|
—
|
|
||
Ending balance
|
$
|
71
|
|
|
$
|
60
|
|
|
|
|
TABLE 27: CROSS-BORDER OUTSTANDINGS(1)
|
|||||||||||
(In millions)
|
Investment Securities and Other Assets
|
|
Derivatives and Securities on Loan
|
|
Total Cross-Border Outstandings
|
||||||
September 30, 2019
|
|
|
|
|
|
|
|||||
Germany
|
$
|
20,954
|
|
|
$
|
340
|
|
|
$
|
21,294
|
|
United Kingdom
|
14,291
|
|
|
1,373
|
|
|
15,664
|
|
|||
Japan
|
8,946
|
|
|
1,632
|
|
|
10,578
|
|
|||
Australia
|
3,664
|
|
|
662
|
|
|
4,326
|
|
|||
Luxembourg
|
2,440
|
|
|
1,472
|
|
|
3,912
|
|
|||
Canada
|
3,198
|
|
|
503
|
|
|
3,701
|
|
|||
Ireland
|
1,940
|
|
|
1,110
|
|
|
3,050
|
|
|||
France
|
2,634
|
|
|
323
|
|
|
2,957
|
|
|||
Switzerland
|
2,390
|
|
|
301
|
|
|
2,691
|
|
|||
December 31, 2018
|
|
|
|
|
|
|
|||||
Germany
|
$
|
20,157
|
|
|
$
|
489
|
|
|
$
|
20,646
|
|
Japan
|
13,985
|
|
|
1,084
|
|
|
15,069
|
|
|||
United Kingdom
|
12,623
|
|
|
1,176
|
|
|
13,799
|
|
|||
Australia
|
4,217
|
|
|
1,349
|
|
|
5,566
|
|
|||
Canada
|
3,010
|
|
|
1,507
|
|
|
4,517
|
|
|||
Ireland
|
2,019
|
|
|
809
|
|
|
2,828
|
|
|||
France
|
2,495
|
|
|
294
|
|
|
2,789
|
|
|||
Luxembourg
|
2,033
|
|
|
710
|
|
|
2,743
|
|
|
|
|
•
|
credit and counterparty risk;
|
•
|
liquidity risk, funding and management;
|
•
|
operational risk;
|
•
|
information technology risk;
|
•
|
market risk associated with our trading activities;
|
•
|
market risk associated with our non-trading activities, which we refer to as asset-and-liability management, and which consists primarily of interest rate risk;
|
•
|
model risk;
|
•
|
strategic risk; and
|
•
|
reputational, fiduciary and business conduct risk.
|
•
|
diverse and stable core earnings;
|
•
|
relative market position;
|
•
|
strong risk management;
|
•
|
strong capital ratios;
|
•
|
diverse liquidity sources, including the global capital markets and client deposits;
|
•
|
strong liquidity monitoring procedures; and
|
•
|
preparedness for current or future regulatory developments.
|
•
|
providing assurance for unsecured funding and depositors;
|
•
|
increasing the potential market for our debt and improving our ability to offer products;
|
•
|
serving markets; and
|
•
|
engaging in transactions in which clients value high credit ratings.
|
TABLE 28: TEN-DAY VALUE-AT-RISK ASSOCIATED WITH TRADING ACTIVITIES FOR COVERED POSITIONS
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Three Months Ended
|
|
As of September 30, 2019
|
|
As of June 30, 2019
|
|
As of September 30, 2018
|
||||||||||||||||||||||||||||||||||||||||
|
September 30, 2019
|
|
June 30, 2019
|
|
September 30, 2018
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
(In thousands)
|
Avg.
|
|
Max.
|
|
Min.
|
|
Avg.
|
|
Max.
|
|
Min.
|
|
Avg.
|
|
Max.
|
|
Min.
|
|
VaR
|
|
VaR
|
|
VaR
|
||||||||||||||||||||||||
Global Markets
|
$
|
10,404
|
|
|
$
|
24,389
|
|
|
$
|
5,239
|
|
|
$
|
10,812
|
|
|
$
|
19,594
|
|
|
$
|
4,742
|
|
|
$
|
6,008
|
|
|
$
|
11,947
|
|
|
$
|
3,308
|
|
|
$
|
24,389
|
|
|
$
|
10,278
|
|
|
$
|
5,428
|
|
Global Treasury
|
489
|
|
|
1,221
|
|
|
146
|
|
|
1,066
|
|
|
3,988
|
|
|
167
|
|
|
317
|
|
|
896
|
|
|
91
|
|
|
287
|
|
|
1,155
|
|
|
896
|
|
||||||||||||
Diversification
|
(455
|
)
|
|
(1,249
|
)
|
|
(157
|
)
|
|
(941
|
)
|
|
(3,975
|
)
|
|
1,360
|
|
|
(314
|
)
|
|
(881
|
)
|
|
(136
|
)
|
|
(315
|
)
|
|
(1,583
|
)
|
|
(886
|
)
|
||||||||||||
Total VaR
|
$
|
10,438
|
|
|
$
|
24,361
|
|
|
$
|
5,228
|
|
|
$
|
10,937
|
|
|
$
|
19,607
|
|
|
$
|
6,269
|
|
|
$
|
6,011
|
|
|
$
|
11,962
|
|
|
$
|
3,263
|
|
|
$
|
24,361
|
|
|
$
|
9,850
|
|
|
$
|
5,438
|
|
TABLE 29: TEN-DAY STRESSED VALUE-AT-RISK ASSOCIATED WITH TRADING ACTIVITIES FOR COVERED POSITIONS
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Three Months Ended
|
|
As of September 30, 2019
|
|
As of June 30, 2019
|
|
As of September 30, 2018
|
||||||||||||||||||||||||||||||||||||||||
|
September 30, 2019
|
|
June 30, 2019
|
|
September 30, 2018
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
(In thousands)
|
Avg.
|
|
Max.
|
|
Min.
|
|
Avg.
|
|
Max.
|
|
Min.
|
|
Avg.
|
|
Max.
|
|
Min.
|
|
Stressed VaR
|
|
Stressed VaR
|
|
Stressed VaR
|
||||||||||||||||||||||||
Global Markets
|
$
|
34,422
|
|
|
$
|
54,867
|
|
|
$
|
17,511
|
|
|
$
|
33,306
|
|
|
$
|
50,947
|
|
|
$
|
15,312
|
|
|
$
|
27,641
|
|
|
$
|
47,571
|
|
|
$
|
14,811
|
|
|
$
|
42,724
|
|
|
$
|
47,670
|
|
|
$
|
25,185
|
|
Global Treasury
|
5,117
|
|
|
10,421
|
|
|
1,519
|
|
|
5,137
|
|
|
10,840
|
|
|
1,187
|
|
|
2,130
|
|
|
4,467
|
|
|
840
|
|
|
3,291
|
|
|
5,813
|
|
|
1,958
|
|
||||||||||||
Diversification
|
(5,106
|
)
|
|
(11,198
|
)
|
|
(1,009
|
)
|
|
(5,476
|
)
|
|
(11,508
|
)
|
|
(834
|
)
|
|
(2,619
|
)
|
|
(6,345
|
)
|
|
(823
|
)
|
|
(3,227
|
)
|
|
(8,713
|
)
|
|
(2,988
|
)
|
||||||||||||
Total VaR
|
$
|
34,433
|
|
|
$
|
54,090
|
|
|
$
|
18,021
|
|
|
$
|
32,967
|
|
|
$
|
50,279
|
|
|
$
|
15,665
|
|
|
$
|
27,152
|
|
|
$
|
45,693
|
|
|
$
|
14,828
|
|
|
$
|
42,788
|
|
|
$
|
44,770
|
|
|
$
|
24,155
|
|
TABLE 30: TEN-DAY VALUE-AT-RISK ASSOCIATED WITH TRADING ACTIVITIES BY RISK FACTOR FOR COVERED POSITIONS(1)
|
|||||||||||||||||||||||||||||||||||
|
As of September 30, 2019
|
|
As of June 30, 2019
|
|
As of September 30, 2018
|
||||||||||||||||||||||||||||||
(In thousands)
|
Foreign Exchange Risk
|
|
Interest Rate Risk
|
|
Volatility Risk
|
|
Foreign Exchange Risk
|
|
Interest Rate Risk
|
|
Volatility Risk
|
|
Foreign Exchange Risk
|
|
Interest Rate
|
|
Volatility Risk
|
||||||||||||||||||
By component:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Global Markets
|
$
|
9,178
|
|
|
$
|
20,808
|
|
|
$
|
303
|
|
|
$
|
3,506
|
|
|
$
|
9,464
|
|
|
$
|
436
|
|
|
$
|
3,103
|
|
|
$
|
4,939
|
|
|
$
|
233
|
|
Global Treasury
|
14
|
|
|
284
|
|
|
—
|
|
|
39
|
|
|
1,141
|
|
|
—
|
|
|
36
|
|
|
896
|
|
|
—
|
|
|||||||||
Diversification
|
(27
|
)
|
|
(396
|
)
|
|
—
|
|
|
(64
|
)
|
|
(1,612
|
)
|
|
—
|
|
|
(33
|
)
|
|
(943
|
)
|
|
—
|
|
|||||||||
Total VaR
|
$
|
9,165
|
|
|
$
|
20,696
|
|
|
$
|
303
|
|
|
$
|
3,481
|
|
|
$
|
8,993
|
|
|
$
|
436
|
|
|
$
|
3,106
|
|
|
$
|
4,892
|
|
|
$
|
233
|
|
TABLE 31: TEN-DAY STRESSED VALUE-AT-RISK ASSOCIATED WITH TRADING ACTIVITIES BY RISK FACTOR FOR COVERED POSITIONS(1)
|
|||||||||||||||||||||||||||||||||||
|
As of September 30, 2019
|
|
As of June 30, 2019
|
|
As of September 30, 2018
|
||||||||||||||||||||||||||||||
(In thousands)
|
Foreign Exchange Risk
|
|
Interest Rate Risk
|
|
Volatility Risk
|
|
Foreign Exchange Risk
|
|
Interest Rate Risk
|
|
Volatility Risk
|
|
Foreign Exchange Risk
|
|
Interest Rate
|
|
Volatility Risk
|
||||||||||||||||||
By component:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Global Markets
|
$
|
25,735
|
|
|
$
|
49,042
|
|
|
$
|
372
|
|
|
$
|
7,291
|
|
|
$
|
48,433
|
|
|
$
|
819
|
|
|
$
|
14,544
|
|
|
$
|
29,451
|
|
|
$
|
287
|
|
Global Treasury
|
26
|
|
|
3,425
|
|
|
—
|
|
|
85
|
|
|
5,765
|
|
|
—
|
|
|
109
|
|
|
2,071
|
|
|
—
|
|
|||||||||
Diversification
|
(30
|
)
|
|
(5,208
|
)
|
|
—
|
|
|
(151
|
)
|
|
(6,579
|
)
|
|
—
|
|
|
(117
|
)
|
|
(3,446
|
)
|
|
—
|
|
|||||||||
Total VaR
|
$
|
25,731
|
|
|
$
|
47,259
|
|
|
$
|
372
|
|
|
$
|
7,225
|
|
|
$
|
47,619
|
|
|
$
|
819
|
|
|
$
|
14,536
|
|
|
$
|
28,076
|
|
|
$
|
287
|
|
|
|
|
TABLE 32: KEY INTEREST RATES FOR BASELINE FORECASTS
|
|||||||||||
|
September 30, 2019
|
|
September 30, 2018
|
||||||||
|
Fed Funds Target
|
|
10-Year Treasury
|
|
Fed Funds Target
|
|
10-Year Treasury
|
||||
Spot rates
|
2.00
|
%
|
|
1.66
|
%
|
|
2.25
|
%
|
|
3.06
|
%
|
12-month forward rates
|
1.25
|
|
|
1.61
|
|
|
2.75
|
|
|
2.95
|
|
TABLE 33: NET INTEREST INCOME SENSITIVITY
|
|||||||||||||||||||||||
|
September 30, 2019
|
|
September 30, 2018
|
||||||||||||||||||||
(In millions)
|
U.S. Dollar
|
|
All Other Currencies
|
|
Total
|
|
U.S. Dollar
|
|
All Other Currencies
|
|
Total
|
||||||||||||
Rate change:
|
Benefit (Exposure)
|
|
Benefit (Exposure)
|
||||||||||||||||||||
Parallel shifts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
+100 bps shock
|
$
|
86
|
|
|
$
|
171
|
|
|
$
|
257
|
|
|
$
|
89
|
|
|
$
|
257
|
|
|
$
|
346
|
|
–100 bps shock
|
(227
|
)
|
|
58
|
|
|
(169
|
)
|
|
(192
|
)
|
|
21
|
|
|
(171
|
)
|
||||||
Steeper yield curve:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
+100 bps shift in long-end rates
|
151
|
|
|
6
|
|
|
157
|
|
|
63
|
|
|
20
|
|
|
83
|
|
||||||
-100 bps shift in short-end rates
|
(67
|
)
|
|
61
|
|
|
(6
|
)
|
|
(97
|
)
|
|
40
|
|
|
(57
|
)
|
||||||
Flatter yield curve:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
+100 bps shift in short-end rates
|
(52
|
)
|
|
165
|
|
|
113
|
|
|
28
|
|
|
240
|
|
|
268
|
|
||||||
-100 bps shift in long-end rates
|
(146
|
)
|
|
(5
|
)
|
|
(151
|
)
|
|
(86
|
)
|
|
(20
|
)
|
|
(106
|
)
|
TABLE 34: ECONOMIC VALUE OF EQUITY SENSITIVITY
|
|||||||
|
As of September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Rate change:
|
Benefit (Exposure)
|
||||||
+200 bps shock
|
$
|
(1,726
|
)
|
|
$
|
(1,827
|
)
|
–200 bps shock
|
1,093
|
|
|
1,338
|
|
|
|
|
|
TABLE 36: CAPITAL ROLL-FORWARD
|
|||||||||||||||
(In millions)
|
Basel III Advanced Approaches September 30, 2019
|
|
Basel III Standardized Approach September 30, 2019
|
|
Basel III
Advanced Approaches
December 31, 2018(1)
|
|
Basel III Standardized Approach
December 31, 2018(1)
|
||||||||
Common equity tier 1 capital:
|
|
|
|
|
|
|
|
||||||||
Common equity tier 1 capital balance, beginning of period
|
$
|
11,580
|
|
|
$
|
11,580
|
|
|
$
|
12,204
|
|
|
$
|
12,204
|
|
Net income
|
1,678
|
|
|
1,678
|
|
|
2,599
|
|
|
2,599
|
|
||||
Changes in treasury stock, at cost
|
(1,014
|
)
|
|
(1,014
|
)
|
|
314
|
|
|
314
|
|
||||
Dividends declared
|
(703
|
)
|
|
(703
|
)
|
|
(853
|
)
|
|
(853
|
)
|
||||
Goodwill and other intangible assets, net of associated deferred tax liabilities
|
233
|
|
|
233
|
|
|
(2,473
|
)
|
|
(2,473
|
)
|
||||
Effect of certain items in accumulated other comprehensive income (loss)
|
331
|
|
|
331
|
|
|
(360
|
)
|
|
(360
|
)
|
||||
Other adjustments
|
123
|
|
|
123
|
|
|
149
|
|
|
149
|
|
||||
Changes in common equity tier 1 capital
|
649
|
|
|
649
|
|
|
(624
|
)
|
|
(624
|
)
|
||||
Common equity tier 1 capital balance, end of period
|
12,229
|
|
|
12,229
|
|
|
11,580
|
|
|
11,580
|
|
||||
Additional tier 1 capital:
|
|
|
|
|
|
|
|
||||||||
Tier 1 capital balance, beginning of period
|
15,270
|
|
|
15,270
|
|
|
15,382
|
|
|
15,382
|
|
||||
Change in common equity tier 1 capital
|
649
|
|
|
649
|
|
|
(624
|
)
|
|
(624
|
)
|
||||
Net issuance of preferred stock
|
—
|
|
|
—
|
|
|
494
|
|
|
494
|
|
||||
Other adjustments
|
—
|
|
|
—
|
|
|
18
|
|
|
18
|
|
||||
Changes in tier 1 capital
|
649
|
|
|
649
|
|
|
(112
|
)
|
|
(112
|
)
|
||||
Tier 1 capital balance, end of period
|
15,919
|
|
|
15,919
|
|
|
15,270
|
|
|
15,270
|
|
||||
Tier 2 capital:
|
|
|
|
|
|
|
|
||||||||
Tier 2 capital balance, beginning of period
|
792
|
|
|
861
|
|
|
985
|
|
|
1,053
|
|
||||
Net issuance and changes in long-term debt qualifying as tier 2
|
(171
|
)
|
|
(171
|
)
|
|
(202
|
)
|
|
(202
|
)
|
||||
Changes in Allowance for loan and lease losses and other
|
(10
|
)
|
|
3
|
|
|
10
|
|
|
11
|
|
||||
Change in other adjustments
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Changes in tier 2 capital
|
(181
|
)
|
|
(168
|
)
|
|
(193
|
)
|
|
(192
|
)
|
||||
Tier 2 capital balance, end of period
|
611
|
|
|
693
|
|
|
792
|
|
|
861
|
|
||||
Total capital:
|
|
|
|
|
|
|
|
||||||||
Total capital balance, beginning of period
|
16,062
|
|
|
16,131
|
|
|
16,367
|
|
|
16,435
|
|
||||
Changes in tier 1 capital
|
649
|
|
|
649
|
|
|
(112
|
)
|
|
(112
|
)
|
||||
Changes in tier 2 capital
|
(181
|
)
|
|
(168
|
)
|
|
(193
|
)
|
|
(192
|
)
|
||||
Total capital balance, end of period
|
$
|
16,530
|
|
|
$
|
16,612
|
|
|
$
|
16,062
|
|
|
$
|
16,131
|
|
|
|
|
|
TABLE 37: ADVANCED & STANDARDIZED APPROACHES RISK-WEIGHTED ASSETS ROLL-FORWARD
|
|||||||||||||||
(In millions)
|
Basel III Advanced Approaches September 30, 2019
|
|
Basel III
Advanced Approaches December 31, 2018
|
|
Basel III Standardized Approach September 30, 2019
|
|
Basel III Standardized Approach December 31, 2018
|
||||||||
Total risk-weighted assets, beginning of period(1)
|
$
|
95,315
|
|
|
$
|
99,156
|
|
|
$
|
98,820
|
|
|
$
|
102,683
|
|
Changes in credit risk-weighted assets:
|
|
|
|
|
|
|
|
||||||||
Net increase (decrease) in investment securities-wholesale
|
1,491
|
|
|
(940
|
)
|
|
2,973
|
|
|
(2,887
|
)
|
||||
Net increase (decrease) in loans and leases
|
1,207
|
|
|
(12
|
)
|
|
1,995
|
|
|
3,104
|
|
||||
Net increase (decrease) in securitization exposures
|
(167
|
)
|
|
(3,666
|
)
|
|
(167
|
)
|
|
(3,666
|
)
|
||||
Net increase (decrease) in repo-style transaction exposures
|
(417
|
)
|
|
(19
|
)
|
|
2,758
|
|
|
(3,156
|
)
|
||||
Net increase (decrease) in Over-the-counter derivatives exposures
|
(180
|
)
|
|
(1,170
|
)
|
|
522
|
|
|
(46
|
)
|
||||
Net increase (decrease) in all other(2)(3)
|
2,054
|
|
|
1,545
|
|
|
1,629
|
|
|
2,605
|
|
||||
Net increase (decrease) in credit risk-weighted assets
|
3,988
|
|
|
(4,262
|
)
|
|
9,710
|
|
|
(4,046
|
)
|
||||
Net increase (decrease) in market risk-weighted assets
|
171
|
|
|
183
|
|
|
171
|
|
|
183
|
|
||||
Net increase (decrease) in operational risk-weighted assets
|
853
|
|
|
238
|
|
|
N/A
|
|
|
N/A
|
|
||||
Total risk-weighted assets, end of period
|
$
|
100,327
|
|
|
$
|
95,315
|
|
|
$
|
108,701
|
|
|
$
|
98,820
|
|
|
|
|
TABLE 38: TIER 1 AND SUPPLEMENTARY LEVERAGE RATIOS
|
|||||||
(Dollars in millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
State Street Corporation:
|
|
|
|
||||
Tier 1 capital
|
$
|
15,919
|
|
|
$
|
15,270
|
|
Average assets
|
223,273
|
|
|
221,350
|
|
||
Less: adjustments for deductions from tier 1 capital
|
(9,276
|
)
|
|
(9,426
|
)
|
||
Adjusted average assets
|
213,997
|
|
|
211,924
|
|
||
Off-balance sheet exposures
|
28,031
|
|
|
29,279
|
|
||
Total assets for SLR
|
$
|
242,028
|
|
|
$
|
241,203
|
|
Tier 1 leverage ratio(1)
|
7.4
|
%
|
|
7.2
|
%
|
||
Supplementary leverage ratio
|
6.6
|
|
|
6.3
|
|
||
|
|
|
|
||||
State Street Bank:
|
|
|
|
||||
Tier 1 capital
|
$
|
17,466
|
|
|
$
|
16,941
|
|
Average assets
|
219,470
|
|
|
218,402
|
|
||
Less: adjustments for deductions from tier 1 capital
|
(8,845
|
)
|
|
(8,989
|
)
|
||
Adjusted average assets
|
210,625
|
|
|
209,413
|
|
||
Off-balance sheet exposures
|
28,059
|
|
|
29,368
|
|
||
Total assets for SLR
|
$
|
238,684
|
|
|
$
|
238,781
|
|
Tier 1 leverage ratio (1)
|
8.3
|
%
|
|
8.1
|
%
|
||
Supplementary leverage ratio
|
7.3
|
|
|
7.1
|
|
|
|
|
TABLE 39: TOTAL LOSS-ABSORBING CAPACITY
|
||||||||||||||
|
As of September 30, 2019
|
|||||||||||||
(Dollars in millions)
|
Actual
|
|
Requirement(1)
|
|||||||||||
Total loss-absorbing capacity (eligible Tier 1 regulatory capacity and long term debt):
|
|
|
|
|
|
|
|
|||||||
Risk-weighted assets
|
$
|
25,542
|
|
|
23.5
|
%
|
|
$
|
23,371
|
|
|
21.5
|
%
|
|
Supplementary leverage exposure
|
25,542
|
|
|
10.6
|
|
|
22,993
|
|
|
9.5
|
|
|||
Long term debt:
|
|
|
|
|
|
|
|
|||||||
Risk-weighted assets
|
8,878
|
|
|
8.2
|
|
|
8,153
|
|
|
7.5
|
|
|||
Supplementary leverage exposure
|
8,878
|
|
|
3.7
|
|
|
10,891
|
|
|
4.5
|
|
|
|
|
|
TABLE 40: PREFERRED STOCK ISSUED AND OUTSTANDING
|
||||||||||||||||||||
|
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
|
|
|
|
|
TABLE 41: PREFERRED STOCK DIVIDENDS
|
|||||||||||||||||||||||
|
Three Months Ended September 30,
|
||||||||||||||||||||||
|
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
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
(Dollars in millions, except per share amounts)
|
Dividends Declared per Share
|
|
Dividends Declared per Depositary Share
|
|
Total
|
|
Dividends Declared per Share
|
|
Dividends Declared per Depositary Share
|
|
Total
|
||||||||||||
Preferred Stock:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Series C
|
$
|
3,939
|
|
|
$
|
0.99
|
|
|
$
|
19
|
|
|
$
|
3,939
|
|
|
$
|
0.99
|
|
|
$
|
19
|
|
Series D
|
4,425
|
|
|
1.11
|
|
|
33
|
|
|
4,425
|
|
|
1.11
|
|
|
33
|
|
||||||
Series E
|
4,500
|
|
|
1.14
|
|
|
33
|
|
|
4,500
|
|
|
1.14
|
|
|
33
|
|
||||||
Series F
|
5,250
|
|
|
52.50
|
|
|
40
|
|
|
5,250
|
|
|
52.50
|
|
|
40
|
|
||||||
Series G
|
4,014
|
|
|
0.99
|
|
|
21
|
|
|
4,014
|
|
|
0.99
|
|
|
21
|
|
||||||
Series H
|
2,813
|
|
|
28.13
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
|
|
|
$
|
160
|
|
|
|
|
|
|
$
|
146
|
|
|
|
|
|
TABLE 42: SHARES REPURCHASED
|
||||||||||
|
Three Months Ended September 30, 2019
|
|||||||||
|
Shares Acquired
(In millions) |
|
Average Cost per Share
|
|
Total Acquired
(In millions) |
|||||
2019 Program
|
9.4
|
|
|
$
|
53.15
|
|
|
$
|
500
|
|
|
|
|
|
|
|
|||||
|
Nine Months Ended September 30, 2019
|
|||||||||
|
Shares Acquired
(In millions) |
|
Average Cost per Share
|
|
Total Acquired
(In millions) |
|||||
2018 Program
|
8.8
|
|
|
$
|
67.97
|
|
|
$
|
600
|
|
2019 Program
|
9.4
|
|
|
$
|
53.15
|
|
|
$
|
500
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(Dollars in millions, except per share amounts)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Fee revenue:
|
|
|
|
|
|
|
|
||||||||
Servicing fees
|
$
|
1,272
|
|
|
$
|
1,333
|
|
|
$
|
3,775
|
|
|
$
|
4,135
|
|
Management fees
|
445
|
|
|
474
|
|
|
1,306
|
|
|
1,411
|
|
||||
Foreign exchange trading services
|
284
|
|
|
288
|
|
|
837
|
|
|
907
|
|
||||
Securities finance
|
116
|
|
|
128
|
|
|
360
|
|
|
423
|
|
||||
Processing fees and other
|
142
|
|
|
95
|
|
|
501
|
|
|
252
|
|
||||
Total fee revenue
|
2,259
|
|
|
2,318
|
|
|
6,779
|
|
|
7,128
|
|
||||
Net interest income:
|
|
|
|
|
|
|
|
||||||||
Interest income
|
1,001
|
|
|
916
|
|
|
3,035
|
|
|
2,680
|
|
||||
Interest expense
|
357
|
|
|
244
|
|
|
1,105
|
|
|
706
|
|
||||
Net interest income
|
644
|
|
|
672
|
|
|
1,930
|
|
|
1,974
|
|
||||
Gains (losses) related to investment securities, net:
|
|
|
|
|
|
|
|
||||||||
Gains (losses) from sales of available-for-sale securities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||
Losses from other-than-temporary impairment
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
||||
Gains (losses) related to investment securities, net
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
6
|
|
||||
Total revenue
|
2,903
|
|
|
2,989
|
|
|
8,708
|
|
|
9,108
|
|
||||
Provision for loan losses
|
2
|
|
|
5
|
|
|
7
|
|
|
7
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
||||||||
Compensation and employee benefits
|
1,083
|
|
|
1,103
|
|
|
3,396
|
|
|
3,477
|
|
||||
Information systems and communications
|
376
|
|
|
332
|
|
|
1,103
|
|
|
968
|
|
||||
Transaction processing services
|
254
|
|
|
248
|
|
|
741
|
|
|
759
|
|
||||
Occupancy
|
113
|
|
|
110
|
|
|
344
|
|
|
354
|
|
||||
Acquisition and restructuring costs
|
27
|
|
|
—
|
|
|
48
|
|
|
—
|
|
||||
Amortization of other intangible assets
|
59
|
|
|
47
|
|
|
178
|
|
|
145
|
|
||||
Other
|
268
|
|
|
251
|
|
|
817
|
|
|
826
|
|
||||
Total expenses
|
2,180
|
|
|
2,091
|
|
|
6,627
|
|
|
6,529
|
|
||||
Income before income tax expense
|
721
|
|
|
893
|
|
|
2,074
|
|
|
2,572
|
|
||||
Income tax expense
|
138
|
|
|
129
|
|
|
396
|
|
|
416
|
|
||||
Net income
|
$
|
583
|
|
|
$
|
764
|
|
|
$
|
1,678
|
|
|
$
|
2,156
|
|
Net income available to common shareholders
|
$
|
528
|
|
|
$
|
708
|
|
|
$
|
1,517
|
|
|
$
|
2,008
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.44
|
|
|
$
|
1.89
|
|
|
$
|
4.07
|
|
|
$
|
5.44
|
|
Diluted
|
1.42
|
|
|
1.87
|
|
|
4.03
|
|
|
5.37
|
|
||||
Average common shares outstanding (in thousands):
|
|
|
|
|
|
|
|
||||||||
Basic
|
366,732
|
|
|
374,963
|
|
|
372,766
|
|
|
369,368
|
|
||||
Diluted
|
370,595
|
|
|
379,383
|
|
|
376,361
|
|
|
374,064
|
|
||||
Cash dividends declared per common share
|
$
|
.52
|
|
|
$
|
.47
|
|
|
$
|
1.46
|
|
|
$
|
1.31
|
|
|
Three Months Ended September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Net income
|
$
|
583
|
|
|
$
|
764
|
|
Other comprehensive income (loss), net of related taxes:
|
|
|
|
||||
Foreign currency translation, net of related taxes of ($62) and $3, respectively
|
(264
|
)
|
|
(57
|
)
|
||
Net unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment and net of related taxes of $53 and ($66), respectively
|
136
|
|
|
(204
|
)
|
||
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes of $3 and ($12), respectively
|
10
|
|
|
6
|
|
||
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of zero and $1, respectively
|
1
|
|
|
2
|
|
||
Net unrealized gains (losses) on cash flow hedges, net of related taxes of $3 and ($5), respectively
|
7
|
|
|
30
|
|
||
Net unrealized gains (losses) on retirement plans, net of related taxes of zero and $2, respectively
|
(1
|
)
|
|
—
|
|
||
Other comprehensive income (loss)
|
(111
|
)
|
|
(223
|
)
|
||
Total comprehensive income
|
$
|
472
|
|
|
$
|
541
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Net income
|
$
|
1,678
|
|
|
$
|
2,156
|
|
Other comprehensive income (loss), net of related taxes:
|
|
|
|
||||
Foreign currency translation, net of related taxes of ($55) and ($59), respectively
|
(248
|
)
|
|
(244
|
)
|
||
Net unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment and net of related taxes of $263 and ($202), respectively
|
665
|
|
|
(475
|
)
|
||
Net unrealized gains (losses) on available-for-sale securities designated in fair value hedges, net of related taxes of $4 and $10, respectively
|
13
|
|
|
29
|
|
||
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit, net of related taxes of $1 and $4, respectively
|
2
|
|
|
1
|
|
||
Net unrealized gains (losses) on cash flow hedges, net of related taxes of $12 and ($15), respectively
|
32
|
|
|
(27
|
)
|
||
Net unrealized gains (losses) on retirement plans, net of related taxes of ($5) and $5, respectively
|
(9
|
)
|
|
14
|
|
||
Other comprehensive income (loss)
|
455
|
|
|
(702
|
)
|
||
Total comprehensive income
|
$
|
2,133
|
|
|
$
|
1,454
|
|
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
(Dollars in millions, except per share amounts)
|
(Unaudited)
|
|
|
||||
Assets:
|
|
|
|
||||
Cash and due from banks
|
$
|
3,598
|
|
|
$
|
3,212
|
|
Interest-bearing deposits with banks
|
62,324
|
|
|
73,040
|
|
||
Securities purchased under resale agreements
|
3,041
|
|
|
4,679
|
|
||
Trading account assets
|
839
|
|
|
860
|
|
||
Investment securities available-for-sale
|
54,757
|
|
|
45,148
|
|
||
Investment securities held-to-maturity (fair value of $39,535 and $41,351)
|
39,119
|
|
|
41,914
|
|
||
Loans and leases (less allowance for losses of $71 and $67)
|
26,938
|
|
|
25,722
|
|
||
Premises and equipment (net of accumulated depreciation of $4,235 and $4,152)
|
2,306
|
|
|
2,214
|
|
||
Accrued interest and fees receivable
|
3,258
|
|
|
3,203
|
|
||
Goodwill
|
7,500
|
|
|
7,446
|
|
||
Other intangible assets
|
2,077
|
|
|
2,369
|
|
||
Other assets
|
38,849
|
|
|
34,789
|
|
||
Total assets
|
$
|
244,606
|
|
|
$
|
244,596
|
|
Liabilities:
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Non-interest-bearing
|
$
|
33,719
|
|
|
$
|
44,804
|
|
Interest-bearing - U.S.
|
72,260
|
|
|
66,235
|
|
||
Interest-bearing - non-U.S.
|
64,907
|
|
|
69,321
|
|
||
Total deposits
|
170,886
|
|
|
180,360
|
|
||
Securities sold under repurchase agreements
|
1,330
|
|
|
1,082
|
|
||
Other short-term borrowings
|
7,073
|
|
|
3,092
|
|
||
Accrued expenses and other liabilities
|
28,653
|
|
|
24,232
|
|
||
Long-term debt
|
11,455
|
|
|
11,093
|
|
||
Total liabilities
|
219,397
|
|
|
219,859
|
|
||
Commitments, guarantees and contingencies (Notes 9 and 10)
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
||||
Preferred stock, no par, 3,500,000 shares authorized:
|
|
|
|
||||
Series C, 5,000 shares issued and outstanding
|
491
|
|
|
491
|
|
||
Series D, 7,500 shares issued and outstanding
|
742
|
|
|
742
|
|
||
Series E, 7,500 shares issued and outstanding
|
728
|
|
|
728
|
|
||
Series F, 7,500 shares issued and outstanding
|
742
|
|
|
742
|
|
||
Series G, 5,000 shares issued and outstanding
|
493
|
|
|
493
|
|
||
Series H, 5,000 shares issued and outstanding
|
494
|
|
|
494
|
|
||
Common stock, $1 par, 750,000,000 shares authorized:
|
|
|
|
||||
503,879,642 and 503,879,642 shares issued, and 363,623,285 and 379,946,724 shares outstanding
|
504
|
|
|
504
|
|
||
Surplus
|
10,117
|
|
|
10,061
|
|
||
Retained earnings
|
21,612
|
|
|
20,553
|
|
||
Accumulated other comprehensive income (loss)
|
(985
|
)
|
|
(1,356
|
)
|
||
Treasury stock, at cost (140,256,357 and 123,932,918 shares)
|
(9,729
|
)
|
|
(8,715
|
)
|
||
Total shareholders’ equity
|
25,209
|
|
|
24,737
|
|
||
Total liabilities and shareholders' equity
|
$
|
244,606
|
|
|
$
|
244,596
|
|
(Dollars in millions, except per share amounts, shares in thousands)
|
Preferred
Stock
|
|
Common Stock
|
|
Surplus
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury Stock
|
|
Total
|
||||||||||||||||||||
Shares
(In thousands)
|
|
Amount
|
|
Shares
(In thousands) |
|
Amount
|
|
||||||||||||||||||||||||||
Balance at December 31, 2017
|
$
|
3,196
|
|
|
503,880
|
|
|
$
|
504
|
|
|
$
|
9,799
|
|
|
$
|
18,809
|
|
|
$
|
(1,009
|
)
|
|
136,230
|
|
|
$
|
(9,029
|
)
|
|
$
|
22,270
|
|
Net income
|
|
|
|
|
|
|
|
|
659
|
|
|
|
|
|
|
|
|
659
|
|
||||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
(65
|
)
|
|
|
|
|
|
(65
|
)
|
|||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Common stock - $0.42 per share
|
|
|
|
|
|
|
|
|
|
|
|
(154
|
)
|
|
|
|
|
|
|
|
|
|
(154
|
)
|
|||||||||
Preferred stock
|
|
|
|
|
|
|
|
|
|
|
|
(55
|
)
|
|
|
|
|
|
|
|
|
|
(55
|
)
|
|||||||||
Common stock acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,324
|
|
|
(350
|
)
|
|
(350
|
)
|
||||||||||
Common stock awards exercised
|
|
|
|
|
|
|
|
|
(3
|
)
|
|
|
|
|
|
(1,075
|
)
|
|
45
|
|
|
42
|
|
||||||||||
Other
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
(7
|
)
|
|
—
|
|
|
3
|
|
|||||||||||
Balance at March 31, 2018
|
$
|
3,196
|
|
|
503,880
|
|
|
$
|
504
|
|
|
$
|
9,796
|
|
|
$
|
19,262
|
|
|
$
|
(1,074
|
)
|
|
138,472
|
|
|
$
|
(9,334
|
)
|
|
$
|
22,350
|
|
Net income
|
|
|
|
|
|
|
|
|
733
|
|
|
|
|
|
|
|
|
733
|
|
||||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
(414
|
)
|
|
|
|
|
|
(414
|
)
|
||||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common stock - $0.42 per share
|
|
|
|
|
|
|
|
|
(153
|
)
|
|
|
|
|
|
|
|
(153
|
)
|
||||||||||||||
Preferred stock
|
|
|
|
|
|
|
|
|
(36
|
)
|
|
|
|
|
|
|
|
(36
|
)
|
||||||||||||||
Common stock awards exercised
|
|
|
|
|
|
|
24
|
|
|
|
|
|
|
(423
|
)
|
|
17
|
|
|
41
|
|
||||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|||||||||||||
Balance at June 30, 2018
|
$
|
3,196
|
|
|
503,880
|
|
|
$
|
504
|
|
|
$
|
9,820
|
|
|
$
|
19,806
|
|
|
$
|
(1,488
|
)
|
|
138,052
|
|
|
$
|
(9,317
|
)
|
|
$
|
22,521
|
|
Net income
|
|
|
|
|
|
|
|
|
764
|
|
|
|
|
|
|
|
|
764
|
|
||||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
(223
|
)
|
|
|
|
|
|
(223
|
)
|
||||||||||||||
Preferred stock issued
|
494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
494
|
|
||||||||||||||
Common stock issued
|
|
|
|
|
|
|
586
|
|
|
|
|
|
|
(13,244
|
)
|
|
564
|
|
|
1,150
|
|
||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common stock - $0.47 per share
|
|
|
|
|
|
|
|
|
(179
|
)
|
|
|
|
|
|
|
|
(179
|
)
|
||||||||||||||
Preferred stock
|
|
|
|
|
|
|
|
|
(55
|
)
|
|
|
|
|
|
|
|
(55
|
)
|
||||||||||||||
Common stock awards exercised
|
|
|
|
|
|
|
12
|
|
|
|
|
|
|
(433
|
)
|
|
19
|
|
|
31
|
|
||||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
15
|
|
|
(1
|
)
|
|
(1
|
)
|
|||||||||||||
Balance at September 30, 2018
|
$
|
3,690
|
|
|
503,880
|
|
|
$
|
504
|
|
|
$
|
10,418
|
|
|
$
|
20,336
|
|
|
$
|
(1,711
|
)
|
|
124,390
|
|
|
$
|
(8,735
|
)
|
|
$
|
24,502
|
|
Balance at December 31, 2018
|
$
|
3,690
|
|
|
503,880
|
|
|
$
|
504
|
|
|
$
|
10,061
|
|
|
$
|
20,553
|
|
|
$
|
(1,356
|
)
|
|
123,933
|
|
|
$
|
(8,715
|
)
|
|
$
|
24,737
|
|
Reclassification of certain tax effects(1)
|
|
|
|
|
|
|
|
|
84
|
|
|
(84
|
)
|
|
|
|
|
|
—
|
|
|||||||||||||
Net income
|
|
|
|
|
|
|
|
|
508
|
|
|
|
|
|
|
|
|
508
|
|
||||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
260
|
|
|
|
|
|
|
260
|
|
||||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common stock - $0.47 per share
|
|
|
|
|
|
|
|
|
(177
|
)
|
|
|
|
|
|
|
|
(177
|
)
|
||||||||||||||
Preferred stock
|
|
|
|
|
|
|
|
|
(55
|
)
|
|
|
|
|
|
|
|
(55
|
)
|
||||||||||||||
Common stock acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
4,230
|
|
|
(300
|
)
|
|
(300
|
)
|
|||||||||||||
Common stock awards exercised
|
|
|
|
|
|
|
26
|
|
|
|
|
|
|
(1,002
|
)
|
|
45
|
|
|
71
|
|
||||||||||||
Other
|
|
|
|
|
|
|
(5
|
)
|
|
(2
|
)
|
|
|
|
(2
|
)
|
|
1
|
|
|
(6
|
)
|
|||||||||||
Balance at March 31, 2019
|
$
|
3,690
|
|
|
503,880
|
|
|
$
|
504
|
|
|
$
|
10,082
|
|
|
$
|
20,911
|
|
|
$
|
(1,180
|
)
|
|
127,159
|
|
|
$
|
(8,969
|
)
|
|
$
|
25,038
|
|
Net income
|
|
|
|
|
|
|
|
|
587
|
|
|
|
|
|
|
|
|
587
|
|
||||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
306
|
|
|
|
|
|
|
306
|
|
||||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Common stock - $0.47 per share
|
|
|
|
|
|
|
|
|
(175
|
)
|
|
|
|
|
|
|
|
(175
|
)
|
||||||||||||||
Preferred stock
|
|
|
|
|
|
|
|
|
(50
|
)
|
|
|
|
|
|
|
|
(50
|
)
|
||||||||||||||
Common stock acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
4,598
|
|
|
(300
|
)
|
|
(300
|
)
|
|||||||||||||
Common stock awards exercised
|
|
|
|
|
|
|
27
|
|
|
|
|
|
|
(452
|
)
|
|
20
|
|
|
47
|
|
||||||||||||
Other
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
2
|
|
|
—
|
|
|
1
|
|
||||||||||||
Balance at June 30, 2019
|
$
|
3,690
|
|
|
503,880
|
|
|
$
|
504
|
|
|
$
|
10,109
|
|
|
$
|
21,274
|
|
|
$
|
(874
|
)
|
|
131,307
|
|
|
$
|
(9,249
|
)
|
|
$
|
25,454
|
|
Net income
|
|
|
|
|
|
|
|
|
583
|
|
|
|
|
|
|
|
|
583
|
|
||||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
(111
|
)
|
|
|
|
|
|
(111
|
)
|
||||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common stock - $0.52 per share
|
|
|
|
|
|
|
|
|
(189
|
)
|
|
|
|
|
|
|
|
(189
|
)
|
||||||||||||||
Preferred stock
|
|
|
|
|
|
|
|
|
(55
|
)
|
|
|
|
|
|
|
|
(55
|
)
|
||||||||||||||
Common stock acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
9,407
|
|
|
(500
|
)
|
|
(500
|
)
|
|||||||||||||
Common stock awards exercised
|
|
|
|
|
|
|
29
|
|
|
|
|
|
|
(443
|
)
|
|
20
|
|
|
49
|
|
||||||||||||
Other
|
|
|
|
|
|
|
(21
|
)
|
|
(1
|
)
|
|
|
|
(15
|
)
|
|
—
|
|
|
(22
|
)
|
|||||||||||
Balance at September 30, 2019
|
$
|
3,690
|
|
|
503,880
|
|
|
$
|
504
|
|
|
$
|
10,117
|
|
|
$
|
21,612
|
|
|
$
|
(985
|
)
|
|
140,256
|
|
|
$
|
(9,729
|
)
|
|
$
|
25,209
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Operating Activities:
|
|
|
|
||||
Net income
|
$
|
1,678
|
|
|
$
|
2,156
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
||||
Deferred income tax expense (benefit)
|
15
|
|
|
(91
|
)
|
||
Amortization of other intangible assets
|
178
|
|
|
145
|
|
||
Other non-cash adjustments for depreciation, amortization and accretion, net
|
796
|
|
|
729
|
|
||
(Gains) losses related to investment securities, net
|
1
|
|
|
(6
|
)
|
||
Change in trading account assets, net
|
21
|
|
|
92
|
|
||
Change in accrued interest and fees receivable, net
|
(55
|
)
|
|
(97
|
)
|
||
Change in collateral deposits, net
|
216
|
|
|
7,236
|
|
||
Change in unrealized (gains) losses on foreign exchange derivatives, net
|
254
|
|
|
(2,118
|
)
|
||
Change in other assets, net
|
(279
|
)
|
|
47
|
|
||
Change in accrued expenses and other liabilities, net
|
1,471
|
|
|
873
|
|
||
Other, net
|
341
|
|
|
95
|
|
||
Net cash provided by operating activities
|
4,637
|
|
|
9,061
|
|
||
Investing Activities:
|
|
|
|
||||
Net decrease in interest-bearing deposits with banks
|
10,716
|
|
|
3,609
|
|
||
Net decrease (increase) in securities purchased under resale agreements
|
1,638
|
|
|
(954
|
)
|
||
Proceeds from sales of available-for-sale securities
|
5,185
|
|
|
15,712
|
|
||
Proceeds from maturities of available-for-sale securities
|
15,387
|
|
|
11,156
|
|
||
Purchases of available-for-sale securities
|
(30,204
|
)
|
|
(17,949
|
)
|
||
Proceeds from maturities of held-to-maturity securities
|
7,199
|
|
|
5,003
|
|
||
Purchases of held-to-maturity securities
|
(5,036
|
)
|
|
(4,390
|
)
|
||
Net increase in loans and leases
|
(1,220
|
)
|
|
(53
|
)
|
||
Business acquisitions, net of cash acquired
|
(54
|
)
|
|
(63
|
)
|
||
Purchases of equity investments and other long-term assets
|
(611
|
)
|
|
(243
|
)
|
||
Purchases of premises and equipment, net
|
(569
|
)
|
|
(436
|
)
|
||
Other, net
|
466
|
|
|
39
|
|
||
Net cash provided by investing activities
|
2,897
|
|
|
11,431
|
|
||
Financing Activities:
|
|
|
|
||||
Net (decrease) increase in time deposits
|
(11,341
|
)
|
|
1,606
|
|
||
Net increase (decrease) in all other deposits
|
1,868
|
|
|
(18,304
|
)
|
||
Net increase (decrease) in other short-term borrowings
|
4,229
|
|
|
(1,287
|
)
|
||
Payments for long-term debt and obligations under capital leases
|
(47
|
)
|
|
(1,032
|
)
|
||
Proceeds from issuance of preferred stock, net of issuance costs
|
—
|
|
|
495
|
|
||
Proceeds from issuance of common stock, net of issuance costs
|
—
|
|
|
1,150
|
|
||
Repurchases of common stock
|
(1,100
|
)
|
|
(350
|
)
|
||
Repurchases of common stock for employee tax withholding
|
(66
|
)
|
|
113
|
|
||
Payments for cash dividends
|
(691
|
)
|
|
(608
|
)
|
||
Net cash used in financing activities
|
(7,148
|
)
|
|
(18,217
|
)
|
||
Net increase
|
386
|
|
|
2,275
|
|
||
Cash and due from banks at beginning of period
|
3,212
|
|
|
2,004
|
|
||
Cash and due from banks at end of period
|
$
|
3,598
|
|
|
$
|
4,279
|
|
Relevant standards that were recently issued but not yet adopted as of September 30, 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, and its related amendments, 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. We continue to enhance key accounting policies and refine the credit loss models, processes and the associated data requirements needed to meet the standard. The majority of our exposures will utilize a probability-of-default and loss-given-default methodology to estimate the credit loss reserve. We expect to complete validation of the credit loss models we have developed in 2019. During the remainder of 2019, we will continue executing our new processes in parallel with the existing processes to ensure that we have an appropriate control environment over the allowance for credit losses upon adoption in 2020. 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, however, we do not expect the impact of adopting this standard to be material to us. 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 adoption, and will apply this standard prospectively from January 1, 2020.
|
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.
|
|
Fair Value Measurements on a Recurring Basis
|
||||||||||||||||||
|
As of September 30, 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
|
137
|
|
|
208
|
|
|
—
|
|
|
|
|
345
|
|
||||||
Other
|
20
|
|
|
440
|
|
|
—
|
|
|
|
|
460
|
|
||||||
Total trading account assets
|
191
|
|
|
648
|
|
|
—
|
|
|
|
|
839
|
|
||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
||||||||||
Direct obligations
|
2,039
|
|
|
—
|
|
|
—
|
|
|
|
|
2,039
|
|
||||||
Mortgage-backed securities
|
—
|
|
|
22,379
|
|
|
—
|
|
|
|
|
22,379
|
|
||||||
Total U.S. Treasury and federal agencies
|
2,039
|
|
|
22,379
|
|
|
—
|
|
|
|
|
24,418
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Student loans
|
—
|
|
|
471
|
|
|
—
|
|
|
|
|
471
|
|
||||||
Credit cards
|
—
|
|
|
90
|
|
|
—
|
|
|
|
|
90
|
|
||||||
Collateralized loan obligations
|
—
|
|
|
58
|
|
|
1,388
|
|
|
|
|
1,446
|
|
||||||
Total asset-backed securities
|
—
|
|
|
619
|
|
|
1,388
|
|
|
|
|
2,007
|
|
||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities
|
—
|
|
|
1,917
|
|
|
—
|
|
|
|
|
1,917
|
|
||||||
Asset-backed securities
|
—
|
|
|
1,110
|
|
|
721
|
|
|
|
|
1,831
|
|
||||||
Government securities
|
—
|
|
|
13,189
|
|
|
—
|
|
|
|
|
13,189
|
|
||||||
Other(2)
|
—
|
|
|
6,954
|
|
|
44
|
|
|
|
|
6,998
|
|
||||||
Total non-U.S. debt securities
|
—
|
|
|
23,170
|
|
|
765
|
|
|
|
|
23,935
|
|
||||||
State and political subdivisions
|
—
|
|
|
1,819
|
|
|
—
|
|
|
|
|
1,819
|
|
||||||
Collateralized mortgage obligations
|
—
|
|
|
113
|
|
|
—
|
|
|
|
|
113
|
|
||||||
Other U.S. debt securities
|
—
|
|
|
2,465
|
|
|
—
|
|
|
|
|
2,465
|
|
||||||
Total available-for-sale investment securities
|
2,039
|
|
|
50,565
|
|
|
2,153
|
|
|
|
|
54,757
|
|
||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts
|
—
|
|
|
13,898
|
|
|
14
|
|
|
$
|
(8,886
|
)
|
|
5,026
|
|
||||
Interest rate contracts
|
—
|
|
|
22
|
|
|
—
|
|
|
(8
|
)
|
|
14
|
|
|||||
Total derivative instruments
|
—
|
|
|
13,920
|
|
|
14
|
|
|
(8,894
|
)
|
|
5,040
|
|
|||||
Other
|
—
|
|
|
424
|
|
|
—
|
|
|
—
|
|
|
424
|
|
|||||
Total assets carried at fair value
|
$
|
2,230
|
|
|
$
|
65,557
|
|
|
$
|
2,167
|
|
|
$
|
(8,894
|
)
|
|
$
|
61,060
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accrued expenses and other liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Other
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts
|
$
|
4
|
|
|
$
|
14,173
|
|
|
$
|
12
|
|
|
$
|
(9,524
|
)
|
|
$
|
4,665
|
|
Interest rate contracts
|
2
|
|
|
49
|
|
|
—
|
|
|
(8
|
)
|
|
43
|
|
|||||
Other derivative contracts
|
—
|
|
|
207
|
|
|
—
|
|
|
—
|
|
|
207
|
|
|||||
Total derivative instruments
|
6
|
|
|
14,429
|
|
|
12
|
|
|
(9,532
|
)
|
|
4,915
|
|
|||||
Total liabilities carried at fair value
|
$
|
10
|
|
|
$
|
14,429
|
|
|
$
|
12
|
|
|
$
|
(9,532
|
)
|
|
$
|
4,919
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs
|
||||||||||||||||||||||||||||||||||||||
|
Three Months Ended September 30, 2019
|
||||||||||||||||||||||||||||||||||||||
|
Fair Value as of
June 30, 2019 |
|
Total Realized and
Unrealized Gains (Losses) |
|
Purchases
|
|
Sales
|
|
Settlements
|
|
Transfers into
Level 3
|
|
Transfers
out of Level 3
|
|
Fair Value
as of September 30,
2019(1)
|
|
Change in Unrealized Gains (Losses) Related to Financial Instruments
Held as of
September 30, 2019
|
||||||||||||||||||||||
(In millions)
|
|
Recorded in Revenue(1)
|
|
Recorded in Other Comprehensive Income(1)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Available-for-sale Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Mortgage-backed securities
|
123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
(123
|
)
|
|
$
|
—
|
|
|
|
|||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Collateralized loan obligations
|
1,222
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
(97
|
)
|
|
230
|
|
|
—
|
|
|
1,388
|
|
|
|
|||||||||||
Total asset-backed securities
|
1,222
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
(97
|
)
|
|
230
|
|
|
—
|
|
|
1,388
|
|
|
|
|||||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Asset-backed securities
|
721
|
|
|
—
|
|
|
(27
|
)
|
|
66
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
721
|
|
|
|
|||||||||||
Other
|
46
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
|
|||||||||||
Total non-U.S. debt securities
|
767
|
|
|
—
|
|
|
(29
|
)
|
|
66
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
765
|
|
|
|
|||||||||||
Total Available-for-sale investment securities
|
2,112
|
|
|
—
|
|
|
(29
|
)
|
|
99
|
|
|
—
|
|
|
(97
|
)
|
|
230
|
|
|
(162
|
)
|
|
2,153
|
|
|
|
|||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Foreign exchange contracts
|
11
|
|
|
(1
|
)
|
|
—
|
|
|
5
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
14
|
|
|
$
|
—
|
|
|||||||||
Total derivative instruments
|
11
|
|
|
(1
|
)
|
|
—
|
|
|
5
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||||||||
Total assets carried at fair value
|
$
|
2,123
|
|
|
$
|
(1
|
)
|
|
$
|
(29
|
)
|
|
$
|
104
|
|
|
$
|
—
|
|
|
$
|
(98
|
)
|
|
$
|
230
|
|
|
$
|
(162
|
)
|
|
$
|
2,167
|
|
|
$
|
—
|
|
|
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs
|
||||||||||||||||||||||||||||||||||||||
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||||||||||||||||||||
|
Fair Value as of
December 31, 2018 |
|
Total Realized and
Unrealized Gains (Losses) |
|
Purchases
|
|
Sales
|
|
Settlements
|
|
Transfers into
Level 3
|
|
Transfers
out of Level 3
|
|
Fair Value
as of September 30, 2019(1)
|
|
Change in Unrealized Gains (Losses) Related to Financial Instruments
Held as of
September 30, 2019
|
||||||||||||||||||||||
(In millions)
|
|
Recorded in Revenue(1)
|
|
Recorded in Other Comprehensive Income(1)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Available-for-sale Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Mortgage-backed securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
123
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(123
|
)
|
|
$
|
—
|
|
|
|
||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Collateralized loan obligations
|
593
|
|
|
1
|
|
|
—
|
|
|
620
|
|
|
—
|
|
|
(272
|
)
|
|
446
|
|
|
—
|
|
|
1,388
|
|
|
|
|||||||||||
Total asset-backed securities
|
593
|
|
|
1
|
|
|
—
|
|
|
620
|
|
|
—
|
|
|
(272
|
)
|
|
446
|
|
|
—
|
|
|
1,388
|
|
|
|
|||||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Asset-backed securities
|
631
|
|
|
—
|
|
|
(28
|
)
|
|
157
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
721
|
|
|
|
|||||||||||
Other
|
58
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
44
|
|
|
|
|||||||||||
Total non-U.S. debt securities
|
689
|
|
|
—
|
|
|
(30
|
)
|
|
157
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(51
|
)
|
|
765
|
|
|
|
|||||||||||
Collateralized mortgage obligations
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||||||||
Total Available-for-sale investment securities
|
1,284
|
|
|
1
|
|
|
(30
|
)
|
|
900
|
|
|
—
|
|
|
(274
|
)
|
|
446
|
|
|
(174
|
)
|
|
2,153
|
|
|
|
|||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Foreign exchange contracts
|
4
|
|
|
(3
|
)
|
|
—
|
|
|
14
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
14
|
|
|
$
|
—
|
|
|||||||||
Total derivative instruments
|
4
|
|
|
(3
|
)
|
|
—
|
|
|
14
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||||||||
Total assets carried at fair value
|
$
|
1,288
|
|
|
$
|
(2
|
)
|
|
$
|
(30
|
)
|
|
$
|
914
|
|
|
$
|
—
|
|
|
$
|
(275
|
)
|
|
$
|
446
|
|
|
$
|
(174
|
)
|
|
$
|
2,167
|
|
|
$
|
—
|
|
|
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs
|
||||||||||||||||||||||||||||||||||
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||||||||||||||
|
Fair Value
as of
June 30,
2018
|
|
Total Realized and
Unrealized Gains (Losses) |
|
Purchases
|
|
Settlements
|
|
Transfers into Level 3
|
|
Transfers
out of Level 3 |
|
Fair Value
as of September 30, 2018(1)
|
|
Change in Unrealized Gains (Losses) Related to Financial Instruments
Held as of
September 30, 2018
|
||||||||||||||||||||
(In millions)
|
|
Recorded
in Revenue(1) |
|
Recorded
in Other Comprehensive Income(1) |
|
|
|
|
|
||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Available-for-sale Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Collateralized loan obligations
|
$
|
851
|
|
|
$
|
1
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
(239
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
611
|
|
|
|
||
Total asset-backed securities
|
851
|
|
|
1
|
|
|
(2
|
)
|
|
—
|
|
|
(239
|
)
|
|
—
|
|
|
—
|
|
|
611
|
|
|
|
||||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed securities
|
474
|
|
|
—
|
|
|
(5
|
)
|
|
76
|
|
|
—
|
|
|
46
|
|
|
—
|
|
|
591
|
|
|
|
||||||||||
Other
|
169
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(64
|
)
|
|
104
|
|
|
|
||||||||||
Total non-U.S. debt securities
|
643
|
|
|
—
|
|
|
(6
|
)
|
|
76
|
|
|
—
|
|
|
46
|
|
|
(64
|
)
|
|
695
|
|
|
|
||||||||||
Collateralized mortgage obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|
|
||||||||||
Total Available-for-sale investment securities
|
1,494
|
|
|
1
|
|
|
(8
|
)
|
|
76
|
|
|
(239
|
)
|
|
54
|
|
|
(64
|
)
|
|
1,314
|
|
|
|
||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Foreign exchange contracts
|
7
|
|
|
(2
|
)
|
|
—
|
|
|
3
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
2
|
|
|
$
|
(2
|
)
|
||||||||
Total derivative instruments
|
7
|
|
|
(2
|
)
|
|
—
|
|
|
3
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(2
|
)
|
|||||||||
Total assets carried at fair value
|
$
|
1,501
|
|
|
$
|
(1
|
)
|
|
$
|
(8
|
)
|
|
$
|
79
|
|
|
$
|
(245
|
)
|
|
$
|
54
|
|
|
$
|
(64
|
)
|
|
$
|
1,316
|
|
|
$
|
(2
|
)
|
|
|
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs
|
||||||||||||||||||||||||||||||||||||||
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||||||||||||||||||
|
Fair Value
as of
December 31,
2017
|
|
Total Realized and
Unrealized Gains (Losses) |
|
Purchases
|
|
Sales
|
|
Settlements
|
|
Transfers
into Level 3 |
|
Transfers
out of Level 3 |
|
Fair Value
as of September 30, 2018(1)
|
|
Change in Unrealized Gains (Losses) Related to Financial Instruments
Held as of
September 30, 2018
|
||||||||||||||||||||||
(In millions)
|
|
Recorded
in Revenue(1) |
|
Recorded
in Other Comprehensive Income(1) |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Available-for-sale Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Collateralized loan obligations
|
$
|
1,358
|
|
|
$
|
3
|
|
|
$
|
(5
|
)
|
|
$
|
319
|
|
|
$
|
(636
|
)
|
|
$
|
(219
|
)
|
|
$
|
—
|
|
|
$
|
(209
|
)
|
|
$
|
611
|
|
|
|
||
Total asset-backed securities
|
1,358
|
|
|
3
|
|
|
(5
|
)
|
|
319
|
|
|
(636
|
)
|
|
(219
|
)
|
|
—
|
|
|
(209
|
)
|
|
611
|
|
|
|
|||||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Mortgage-backed securities
|
119
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(119
|
)
|
|
—
|
|
|
|
|||||||||||
Asset-backed securities
|
402
|
|
|
—
|
|
|
(14
|
)
|
|
455
|
|
|
(310
|
)
|
|
(56
|
)
|
|
114
|
|
|
—
|
|
|
591
|
|
|
|
|||||||||||
Other
|
204
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(30
|
)
|
|
—
|
|
|
(64
|
)
|
|
104
|
|
|
|
|||||||||||
Total non-U.S. debt securities
|
725
|
|
|
—
|
|
|
(20
|
)
|
|
455
|
|
|
(310
|
)
|
|
(86
|
)
|
|
114
|
|
|
(183
|
)
|
|
695
|
|
|
|
|||||||||||
State and political subdivisions
|
43
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
(1
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
|
|||||||||||
Collateralized mortgage obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|
|
|||||||||||
Total Available-for-sale investment securities
|
2,126
|
|
|
3
|
|
|
(25
|
)
|
|
774
|
|
|
(983
|
)
|
|
(306
|
)
|
|
122
|
|
|
(397
|
)
|
|
1,314
|
|
|
|
|||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Foreign exchange contracts
|
1
|
|
|
(3
|
)
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
$
|
(2
|
)
|
|||||||||
Total derivative instruments
|
1
|
|
|
(3
|
)
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(2
|
)
|
||||||||||
Total assets carried at fair value
|
$
|
2,127
|
|
|
$
|
—
|
|
|
$
|
(25
|
)
|
|
$
|
778
|
|
|
$
|
(983
|
)
|
|
$
|
(306
|
)
|
|
$
|
122
|
|
|
$
|
(397
|
)
|
|
$
|
1,316
|
|
|
$
|
(2
|
)
|
|
|
|
|
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||||||||||
|
Fair Value
|
|
|
|
|
|
Weighted-Average
|
||||||||||
(Dollars in millions)
|
As of September 30, 2019
|
|
As of December 31, 2018
|
|
Valuation Technique
|
|
Significant Unobservable Input(1)
|
|
As of September 30, 2019
|
|
As of December 31, 2018
|
||||||
Significant unobservable inputs readily available to State Street:
|
|||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivative Instruments, foreign exchange contracts
|
$
|
14
|
|
|
$
|
4
|
|
|
Option model
|
|
Volatility
|
|
9.1
|
%
|
|
11.4
|
%
|
Total
|
$
|
14
|
|
|
$
|
4
|
|
|
|
|
|
|
|
|
|
||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivative instruments, foreign exchange contracts
|
12
|
|
|
$
|
4
|
|
|
Option model
|
|
Volatility
|
|
9.2
|
%
|
|
11.4
|
%
|
|
Total
|
$
|
12
|
|
|
$
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
||||||||||
September 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash and due from banks
|
$
|
3,598
|
|
|
$
|
3,598
|
|
|
$
|
3,598
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest-bearing deposits with banks
|
62,324
|
|
|
62,324
|
|
|
—
|
|
|
62,324
|
|
|
—
|
|
|||||
Securities purchased under resale agreements
|
3,041
|
|
|
3,041
|
|
|
—
|
|
|
3,041
|
|
|
—
|
|
|||||
Investment securities held-to-maturity
|
39,119
|
|
|
39,535
|
|
|
11,753
|
|
|
27,681
|
|
|
101
|
|
|||||
Net loans(1)
|
26,938
|
|
|
27,133
|
|
|
—
|
|
|
25,546
|
|
|
1,587
|
|
|||||
Other(2)
|
8,499
|
|
|
8,499
|
|
|
—
|
|
|
8,499
|
|
|
—
|
|
|||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest-bearing
|
$
|
33,719
|
|
|
$
|
33,719
|
|
|
$
|
—
|
|
|
$
|
33,719
|
|
|
$
|
—
|
|
Interest-bearing - U.S.
|
72,260
|
|
|
72,260
|
|
|
—
|
|
|
72,260
|
|
|
—
|
|
|||||
Interest-bearing - non-U.S.
|
64,907
|
|
|
64,907
|
|
|
—
|
|
|
64,907
|
|
|
—
|
|
|||||
Securities sold under repurchase agreements
|
1,330
|
|
|
1,330
|
|
|
—
|
|
|
1,330
|
|
|
—
|
|
|||||
Other short-term borrowings
|
7,073
|
|
|
7,073
|
|
|
—
|
|
|
7,073
|
|
|
—
|
|
|||||
Long-term debt
|
11,455
|
|
|
11,506
|
|
|
—
|
|
|
11,345
|
|
|
161
|
|
|||||
Other(1)
|
8,499
|
|
|
8,499
|
|
|
—
|
|
|
8,499
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
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
|
$
|
3,212
|
|
|
$
|
3,212
|
|
|
$
|
3,212
|
|
|
$
|
—
|
|
|
$
|
—
|
|
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
|
|
|
—
|
|
|
|
|
|
|
September 30, 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
|
$
|
2,035
|
|
|
$
|
11
|
|
|
$
|
7
|
|
|
$
|
2,039
|
|
|
$
|
1,035
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
1,039
|
|
Mortgage-backed securities
|
22,076
|
|
|
321
|
|
|
18
|
|
|
22,379
|
|
|
16,112
|
|
|
37
|
|
|
181
|
|
|
15,968
|
|
||||||||
Total U.S. Treasury and federal agencies
|
24,111
|
|
|
332
|
|
|
25
|
|
|
24,418
|
|
|
17,147
|
|
|
41
|
|
|
181
|
|
|
17,007
|
|
||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Student loans(1)
|
469
|
|
|
2
|
|
|
—
|
|
|
471
|
|
|
538
|
|
|
4
|
|
|
1
|
|
|
541
|
|
||||||||
Credit cards
|
90
|
|
|
—
|
|
|
—
|
|
|
90
|
|
|
609
|
|
|
—
|
|
|
26
|
|
|
583
|
|
||||||||
Collateralized loan obligations
|
1,448
|
|
|
—
|
|
|
2
|
|
|
1,446
|
|
|
594
|
|
|
1
|
|
|
2
|
|
|
593
|
|
||||||||
Total asset-backed securities
|
2,007
|
|
|
2
|
|
|
2
|
|
|
2,007
|
|
|
1,741
|
|
|
5
|
|
|
29
|
|
|
1,717
|
|
||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Mortgage-backed securities
|
1,916
|
|
|
3
|
|
|
2
|
|
|
1,917
|
|
|
1,687
|
|
|
—
|
|
|
5
|
|
|
1,682
|
|
||||||||
Asset-backed securities
|
1,829
|
|
|
3
|
|
|
1
|
|
|
1,831
|
|
|
1,580
|
|
|
—
|
|
|
6
|
|
|
1,574
|
|
||||||||
Government securities
|
12,996
|
|
|
194
|
|
|
1
|
|
|
13,189
|
|
|
12,816
|
|
|
22
|
|
|
45
|
|
|
12,793
|
|
||||||||
Other(2)
|
6,891
|
|
|
108
|
|
|
1
|
|
|
6,998
|
|
|
6,600
|
|
|
18
|
|
|
16
|
|
|
6,602
|
|
||||||||
Total non-U.S. debt securities
|
23,632
|
|
|
308
|
|
|
5
|
|
|
23,935
|
|
|
22,683
|
|
|
40
|
|
|
72
|
|
|
22,651
|
|
||||||||
State and political subdivisions(3)
|
1,765
|
|
|
56
|
|
|
2
|
|
|
1,819
|
|
|
1,905
|
|
|
20
|
|
|
7
|
|
|
1,918
|
|
||||||||
Collateralized mortgage obligations
|
112
|
|
|
1
|
|
|
—
|
|
|
113
|
|
|
200
|
|
|
—
|
|
|
3
|
|
|
197
|
|
||||||||
Other U.S. debt securities
|
2,432
|
|
|
34
|
|
|
1
|
|
|
2,465
|
|
|
1,683
|
|
|
1
|
|
|
26
|
|
|
1,658
|
|
||||||||
Total
|
$
|
54,059
|
|
|
$
|
733
|
|
|
$
|
35
|
|
|
$
|
54,757
|
|
|
$
|
45,359
|
|
|
$
|
107
|
|
|
$
|
318
|
|
|
$
|
45,148
|
|
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Direct obligations
|
$
|
11,781
|
|
|
$
|
20
|
|
|
$
|
11
|
|
|
$
|
11,790
|
|
|
$
|
14,794
|
|
|
$
|
—
|
|
|
$
|
199
|
|
|
$
|
14,595
|
|
Mortgage-backed securities
|
21,966
|
|
|
324
|
|
|
29
|
|
|
22,261
|
|
|
21,647
|
|
|
24
|
|
|
518
|
|
|
21,153
|
|
||||||||
Total U.S. Treasury and federal agencies
|
33,747
|
|
|
344
|
|
|
40
|
|
|
34,051
|
|
|
36,441
|
|
|
24
|
|
|
717
|
|
|
35,748
|
|
||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Student loans(1)
|
3,881
|
|
|
22
|
|
|
21
|
|
|
3,882
|
|
|
3,191
|
|
|
35
|
|
|
10
|
|
|
3,216
|
|
||||||||
Credit cards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
193
|
|
|
—
|
|
|
—
|
|
|
193
|
|
||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||
Total asset-backed securities
|
3,881
|
|
|
22
|
|
|
21
|
|
|
3,882
|
|
|
3,385
|
|
|
35
|
|
|
10
|
|
|
3,410
|
|
||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Mortgage-backed securities
|
471
|
|
|
80
|
|
|
7
|
|
|
544
|
|
|
638
|
|
|
77
|
|
|
9
|
|
|
706
|
|
||||||||
Asset-backed securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
223
|
|
|
—
|
|
|
—
|
|
|
223
|
|
||||||||
Government securities
|
294
|
|
|
1
|
|
|
—
|
|
|
295
|
|
|
358
|
|
|
1
|
|
|
—
|
|
|
359
|
|
||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
46
|
|
||||||||
Total non-U.S. debt securities
|
765
|
|
|
81
|
|
|
7
|
|
|
839
|
|
|
1,265
|
|
|
78
|
|
|
9
|
|
|
1,334
|
|
||||||||
Collateralized mortgage obligations
|
726
|
|
|
38
|
|
|
1
|
|
|
763
|
|
|
823
|
|
|
38
|
|
|
2
|
|
|
859
|
|
||||||||
Total
|
$
|
39,119
|
|
|
$
|
485
|
|
|
$
|
69
|
|
|
$
|
39,535
|
|
|
$
|
41,914
|
|
|
$
|
175
|
|
|
$
|
738
|
|
|
$
|
41,351
|
|
|
|
|
|
|
As of September 30, 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:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Direct obligations
|
$
|
622
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
622
|
|
|
$
|
7
|
|
Mortgage-backed securities
|
2,465
|
|
|
4
|
|
|
1,727
|
|
|
14
|
|
|
4,192
|
|
|
18
|
|
||||||
Total U.S. Treasury and federal agencies
|
3,087
|
|
|
11
|
|
|
1,727
|
|
|
14
|
|
|
4,814
|
|
|
25
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Student loans
|
65
|
|
|
—
|
|
|
154
|
|
|
—
|
|
|
219
|
|
|
—
|
|
||||||
Credit cards
|
90
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
90
|
|
|
—
|
|
||||||
Collateralized loan obligations
|
643
|
|
|
1
|
|
|
276
|
|
|
1
|
|
|
919
|
|
|
2
|
|
||||||
Total asset-backed securities
|
798
|
|
|
1
|
|
|
430
|
|
|
1
|
|
|
1,228
|
|
|
2
|
|
||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
245
|
|
|
1
|
|
|
288
|
|
|
1
|
|
|
533
|
|
|
2
|
|
||||||
Asset-backed securities
|
279
|
|
|
1
|
|
|
217
|
|
|
—
|
|
|
496
|
|
|
1
|
|
||||||
Government securities
|
3,075
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
3,075
|
|
|
1
|
|
||||||
Other
|
1,289
|
|
|
1
|
|
|
190
|
|
|
—
|
|
|
1,479
|
|
|
1
|
|
||||||
Total non-U.S. debt securities
|
4,888
|
|
|
4
|
|
|
695
|
|
|
1
|
|
|
5,583
|
|
|
5
|
|
||||||
State and political subdivisions
|
199
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
199
|
|
|
2
|
|
||||||
Collateralized mortgage obligations
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||||
Other U.S. debt securities
|
171
|
|
|
—
|
|
|
56
|
|
|
1
|
|
|
227
|
|
|
1
|
|
||||||
Total
|
$
|
9,143
|
|
|
$
|
18
|
|
|
$
|
2,914
|
|
|
$
|
17
|
|
|
$
|
12,057
|
|
|
$
|
35
|
|
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Direct obligations
|
$
|
253
|
|
|
$
|
—
|
|
|
$
|
5,645
|
|
|
$
|
11
|
|
|
$
|
5,898
|
|
|
$
|
11
|
|
Mortgage-backed securities
|
3,780
|
|
|
14
|
|
|
1,731
|
|
|
15
|
|
|
5,511
|
|
|
29
|
|
||||||
Total U.S. Treasury and federal agencies
|
4,033
|
|
|
14
|
|
|
7,376
|
|
|
26
|
|
|
11,409
|
|
|
40
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Student loans
|
1,504
|
|
|
10
|
|
|
530
|
|
|
11
|
|
|
2,034
|
|
|
21
|
|
||||||
Total asset-backed securities
|
1,504
|
|
|
10
|
|
|
530
|
|
|
11
|
|
|
2,034
|
|
|
21
|
|
||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
13
|
|
|
1
|
|
|
145
|
|
|
6
|
|
|
158
|
|
|
7
|
|
||||||
Total non-U.S. debt securities
|
13
|
|
|
1
|
|
|
145
|
|
|
6
|
|
|
158
|
|
|
7
|
|
||||||
Collateralized mortgage obligations
|
94
|
|
|
—
|
|
|
28
|
|
|
1
|
|
|
122
|
|
|
1
|
|
||||||
Total
|
$
|
5,644
|
|
|
$
|
25
|
|
|
$
|
8,079
|
|
|
$
|
44
|
|
|
$
|
13,723
|
|
|
$
|
69
|
|
|
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
|
|
|
As of September 30, 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
|
$
|
236
|
|
|
$
|
809
|
|
|
$
|
994
|
|
|
$
|
—
|
|
|
$
|
2,039
|
|
Mortgage-backed securities
|
122
|
|
|
974
|
|
|
3,085
|
|
|
18,198
|
|
|
22,379
|
|
|||||
Total U.S. Treasury and federal agencies
|
358
|
|
|
1,783
|
|
|
4,079
|
|
|
18,198
|
|
|
24,418
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Student loans
|
28
|
|
|
265
|
|
|
119
|
|
|
59
|
|
|
471
|
|
|||||
Credit cards
|
—
|
|
|
—
|
|
|
90
|
|
|
—
|
|
|
90
|
|
|||||
Collateralized loan obligations
|
30
|
|
|
548
|
|
|
751
|
|
|
117
|
|
|
1,446
|
|
|||||
Total asset-backed securities
|
58
|
|
|
813
|
|
|
960
|
|
|
176
|
|
|
2,007
|
|
|||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities
|
336
|
|
|
569
|
|
|
202
|
|
|
810
|
|
|
1,917
|
|
|||||
Asset-backed securities
|
473
|
|
|
718
|
|
|
445
|
|
|
195
|
|
|
1,831
|
|
|||||
Government securities
|
5,231
|
|
|
6,609
|
|
|
1,349
|
|
|
—
|
|
|
13,189
|
|
|||||
Other
|
647
|
|
|
5,889
|
|
|
441
|
|
|
21
|
|
|
6,998
|
|
|||||
Total non-U.S. debt securities
|
6,687
|
|
|
13,785
|
|
|
2,437
|
|
|
1,026
|
|
|
23,935
|
|
|||||
State and political subdivisions
|
146
|
|
|
784
|
|
|
490
|
|
|
399
|
|
|
1,819
|
|
|||||
Collateralized mortgage obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
113
|
|
|
113
|
|
|||||
Other U.S. debt securities
|
576
|
|
|
1,746
|
|
|
143
|
|
|
—
|
|
|
2,465
|
|
|||||
Total
|
$
|
7,825
|
|
|
$
|
18,911
|
|
|
$
|
8,109
|
|
|
$
|
19,912
|
|
|
$
|
54,757
|
|
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
||||||||||
Direct obligations
|
$
|
4,316
|
|
|
$
|
7,427
|
|
|
$
|
7
|
|
|
$
|
31
|
|
|
$
|
11,781
|
|
Mortgage-backed securities
|
38
|
|
|
214
|
|
|
1,991
|
|
|
19,723
|
|
|
21,966
|
|
|||||
Total U.S. Treasury and federal agencies
|
4,354
|
|
|
7,641
|
|
|
1,998
|
|
|
19,754
|
|
|
33,747
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Student loans
|
47
|
|
|
265
|
|
|
324
|
|
|
3,245
|
|
|
3,881
|
|
|||||
Total asset-backed securities
|
47
|
|
|
265
|
|
|
324
|
|
|
3,245
|
|
|
3,881
|
|
|||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities
|
96
|
|
|
34
|
|
|
4
|
|
|
337
|
|
|
471
|
|
|||||
Government securities
|
184
|
|
|
110
|
|
|
—
|
|
|
—
|
|
|
294
|
|
|||||
Total non-U.S. debt securities
|
280
|
|
|
144
|
|
|
4
|
|
|
337
|
|
|
765
|
|
|||||
Collateralized mortgage obligations
|
—
|
|
|
303
|
|
|
13
|
|
|
410
|
|
|
726
|
|
|||||
Total
|
$
|
4,681
|
|
|
$
|
8,353
|
|
|
$
|
2,339
|
|
|
$
|
23,746
|
|
|
$
|
39,119
|
|
|
Nine Months Ended September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Balance, beginning of period
|
$
|
78
|
|
|
$
|
77
|
|
Additions(1):
|
|
|
|
||||
Other-than-temporary-impairment recognized
|
1
|
|
|
2
|
|
||
Realized losses on securities sold or matured
|
(2
|
)
|
|
—
|
|
||
Balance, end of period
|
$
|
77
|
|
|
$
|
79
|
|
|
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Domestic(1):
|
|
|
|
||||
Commercial and financial:
|
|
|
|
||||
Loans to investment funds
|
$
|
13,747
|
|
|
$
|
15,050
|
|
Senior secured bank loans
|
3,145
|
|
|
3,490
|
|
||
Loans to municipalities
|
762
|
|
|
902
|
|
||
Other
|
28
|
|
|
37
|
|
||
Commercial real estate
|
1,346
|
|
|
874
|
|
||
Total domestic
|
19,028
|
|
|
20,353
|
|
||
Foreign(1):
|
|
|
|
||||
Commercial and financial:
|
|
|
|
||||
Loans to investment funds
|
6,868
|
|
|
4,505
|
|
||
Senior secured bank loans
|
1,113
|
|
|
931
|
|
||
Total foreign
|
7,981
|
|
|
5,436
|
|
||
Total loans and leases(2)
|
27,009
|
|
|
25,789
|
|
||
Allowance for loan and lease losses
|
(71
|
)
|
|
(67
|
)
|
||
Loans and leases, net of allowance
|
$
|
26,938
|
|
|
$
|
25,722
|
|
|
|
|
|
September 30, 2019
|
Commercial and Financial
|
|
Commercial Real Estate
|
|
Total Loans and Leases
|
||||||
(In millions)
|
|||||||||||
Investment grade(1)
|
$
|
20,607
|
|
|
$
|
1,346
|
|
|
$
|
21,953
|
|
Speculative(2)
|
5,017
|
|
|
—
|
|
|
5,017
|
|
|||
Special mention(3)
|
25
|
|
|
—
|
|
|
25
|
|
|||
Substandard(4)
|
14
|
|
|
—
|
|
|
14
|
|
|||
Total
|
$
|
25,663
|
|
|
$
|
1,346
|
|
|
$
|
27,009
|
|
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(4)
|
8
|
|
|
—
|
|
|
8
|
|
|||
Total
|
$
|
24,915
|
|
|
$
|
874
|
|
|
$
|
25,789
|
|
|
|
|
|
|
Three Months Ended September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Allowance for loan and lease losses:
|
|
|
|||||
Beginning balance
|
$
|
72
|
|
|
$
|
55
|
|
Provision for loan and lease losses(1)
|
2
|
|
|
5
|
|
||
Charge-offs(1)
|
(2
|
)
|
|
—
|
|
||
Other(2)
|
(1
|
)
|
|
—
|
|
||
Ending balance
|
$
|
71
|
|
|
$
|
60
|
|
|
|
|
|
||||
|
Nine Months Ended September 30,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Allowance for loan and lease losses:
|
|
|
|||||
Beginning balance
|
$
|
67
|
|
|
$
|
54
|
|
Provision for loan and lease losses(1)
|
7
|
|
|
7
|
|
||
Charge-offs(1)
|
(2
|
)
|
|
(1
|
)
|
||
Other(2)
|
(1
|
)
|
|
—
|
|
||
Ending balance
|
$
|
71
|
|
|
$
|
60
|
|
|
|
|
(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)
|
$
|
122
|
|
|
$
|
—
|
|
|
$
|
122
|
|
Foreign currency translation
|
(66
|
)
|
|
(2
|
)
|
|
(68
|
)
|
|||
Ending balance September 30, 2019
|
7,236
|
|
|
264
|
|
|
7,500
|
|
|
(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
|
(156
|
)
|
|
(22
|
)
|
|
(178
|
)
|
|||
Foreign currency translation
|
(21
|
)
|
|
—
|
|
|
(21
|
)
|
|||
Ending balance September 30, 2019
|
$
|
1,948
|
|
|
$
|
129
|
|
|
$
|
2,077
|
|
|
|
September 30, 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
|
$
|
3,077
|
|
|
$
|
(1,659
|
)
|
|
$
|
1,418
|
|
|
$
|
3,262
|
|
|
$
|
(1,605
|
)
|
|
$
|
1,657
|
|
Technology
|
402
|
|
|
(77
|
)
|
|
325
|
|
|
389
|
|
|
(49
|
)
|
|
340
|
|
||||||
Core deposits
|
667
|
|
|
(370
|
)
|
|
297
|
|
|
676
|
|
|
(350
|
)
|
|
326
|
|
||||||
Other
|
98
|
|
|
(61
|
)
|
|
37
|
|
|
103
|
|
|
(57
|
)
|
|
46
|
|
||||||
Total
|
$
|
4,244
|
|
|
$
|
(2,167
|
)
|
|
$
|
2,077
|
|
|
$
|
4,430
|
|
|
$
|
(2,061
|
)
|
|
$
|
2,369
|
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Securities borrowed(1)
|
$
|
22,669
|
|
|
$
|
19,575
|
|
Derivative instruments, net
|
5,040
|
|
|
5,189
|
|
||
Bank-owned life insurance
|
3,388
|
|
|
3,323
|
|
||
Investments in joint ventures and other unconsolidated entities(2)
|
3,064
|
|
|
2,882
|
|
||
Accounts receivable
|
889
|
|
|
308
|
|
||
Right-of-use assets(3)
|
834
|
|
|
—
|
|
||
Collateral, net
|
707
|
|
|
1,354
|
|
||
Prepaid expenses
|
430
|
|
|
493
|
|
||
Receivable for securities settlement
|
429
|
|
|
531
|
|
||
Income taxes receivable
|
119
|
|
|
129
|
|
||
Deferred tax assets, net of valuation allowance(4)
|
95
|
|
|
113
|
|
||
Deposits with clearing organizations
|
58
|
|
|
58
|
|
||
Other
|
1,127
|
|
|
834
|
|
||
Total
|
$
|
38,849
|
|
|
$
|
34,789
|
|
|
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||
(In millions)
|
Derivative Assets(1)
|
|
Derivative Liabilities(2)
|
||||||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|||||||||||
Foreign exchange contracts
|
$
|
13,883
|
|
|
$
|
16,369
|
|
|
$
|
14,111
|
|
|
$
|
16,434
|
|
Other derivative contracts
|
—
|
|
|
—
|
|
|
207
|
|
|
214
|
|
||||
Total
|
$
|
13,883
|
|
|
$
|
16,369
|
|
|
$
|
14,318
|
|
|
$
|
16,648
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|||||||||||
Foreign exchange contracts
|
$
|
29
|
|
|
$
|
17
|
|
|
$
|
78
|
|
|
$
|
88
|
|
Interest rate contracts
|
22
|
|
|
13
|
|
|
51
|
|
|
71
|
|
||||
Total
|
$
|
51
|
|
|
$
|
30
|
|
|
$
|
129
|
|
|
$
|
159
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
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
|
|
|
$
|
170
|
|
|
$
|
476
|
|
|
$
|
549
|
|
Foreign exchange contracts
|
Interest Expense
|
(37
|
)
|
|
(3
|
)
|
|
(135
|
)
|
|
(18
|
)
|
||||
Interest rate contracts
|
Foreign exchange trading services revenue
|
(1
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
(6
|
)
|
||||
Interest rate contracts
|
Processing fees and other revenue
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||
Other derivative contracts
|
Foreign exchange trading services revenue
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||
Other derivative contracts
|
Compensation and employee benefits
|
(46
|
)
|
|
(34
|
)
|
|
(166
|
)
|
|
(140
|
)
|
||||
Total
|
|
$
|
76
|
|
|
$
|
133
|
|
|
$
|
173
|
|
|
$
|
387
|
|
|
September 30, 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
|
$
|
8,274
|
|
|
$
|
254
|
|
|
$
|
1,199
|
|
|
$
|
(11
|
)
|
Available-for-sale securities
|
985
|
|
|
56
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
9,259
|
|
|
$
|
310
|
|
|
$
|
1,199
|
|
|
$
|
(11
|
)
|
|
|
|
|
|
|
|
|
||||||||
|
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
|
)
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
|
|
Three Months Ended September 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
|
|
|
|
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 |
|
Hedged Item in Fair Value Hedging Relationship
|
|
Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income
|
|
Amount of Gain
(Loss) on Hedged Item Recognized in Consolidated Statement of Income |
||||||||||||
Derivatives designated as fair value hedges:
|
|||||||||||||||||||||
Foreign exchange contracts
|
Processing fees and other revenue
|
|
$
|
—
|
|
|
$
|
(14
|
)
|
|
Investment securities
|
|
Processing fees and other revenue
|
|
$
|
—
|
|
|
$
|
14
|
|
Foreign exchange contracts
|
Processing fees and other revenue
|
|
—
|
|
|
33
|
|
|
Foreign exchange deposit
|
|
Processing fees and other revenue
|
|
—
|
|
|
(33
|
)
|
||||
Interest rate contracts
|
Net interest income
|
|
1
|
|
|
9
|
|
|
Available-for-sale securities(1)
|
|
Net interest income
|
|
(2
|
)
|
|
(8
|
)
|
||||
Interest rate contracts
|
Net interest income
|
|
75
|
|
|
(40
|
)
|
|
Long-term debt
|
|
Net interest income
|
|
(72
|
)
|
|
39
|
|
||||
Total
|
|
|
$
|
76
|
|
|
$
|
(12
|
)
|
|
|
|
|
|
$
|
(74
|
)
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
|
|
|
|
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 |
|
Hedged Item in Fair Value Hedging Relationship
|
|
Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income
|
|
Amount of Gain
(Loss) on Hedged Item Recognized in Consolidated Statement of Income |
||||||||||||
Derivatives designated as fair value hedges:
|
|||||||||||||||||||||
Foreign exchange contracts
|
Processing fees and other revenue
|
|
$
|
—
|
|
|
$
|
(57
|
)
|
|
Investment securities
|
|
Processing fees and other revenue
|
|
$
|
—
|
|
|
$
|
57
|
|
Foreign exchange contracts
|
Processing fees and other revenue
|
|
—
|
|
|
(320
|
)
|
|
Foreign exchange deposit
|
|
Processing fees and other revenue
|
|
—
|
|
|
320
|
|
||||
Interest rate contracts
|
Net interest income
|
|
(10
|
)
|
|
40
|
|
|
Available-for-sale securities(2)
|
|
Net interest income
|
|
9
|
|
|
(38
|
)
|
||||
Interest rate contracts
|
Net interest income
|
|
366
|
|
|
(254
|
)
|
|
Long-term debt
|
|
Net interest income
|
|
(357
|
)
|
|
239
|
|
||||
Total
|
|
|
$
|
356
|
|
|
$
|
(591
|
)
|
|
|
|
|
|
$
|
(348
|
)
|
|
$
|
578
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Three Months Ended September 30,
|
||||||||||||
|
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
|
$
|
2
|
|
|
$
|
(7
|
)
|
|
Net interest income
|
|
$
|
(3
|
)
|
|
$
|
(1
|
)
|
Foreign exchange contracts
|
12
|
|
|
38
|
|
|
Net interest income
|
|
7
|
|
|
6
|
|
||||
Total derivatives designated as cash flow hedges
|
$
|
14
|
|
|
$
|
31
|
|
|
|
|
$
|
4
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives designated as net investment hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
$
|
57
|
|
|
$
|
19
|
|
|
Gains (Losses) related to investment securities, net
|
|
$
|
—
|
|
|
$
|
—
|
|
Total derivatives designated as net investment hedges
|
57
|
|
|
19
|
|
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Total
|
$
|
71
|
|
|
$
|
50
|
|
|
|
|
$
|
4
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Nine Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
||||||||||||
|
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
|
$
|
33
|
|
|
$
|
(35
|
)
|
|
Net interest income
|
|
$
|
(7
|
)
|
|
$
|
—
|
|
Foreign exchange contracts
|
24
|
|
|
14
|
|
|
Net interest income
|
|
21
|
|
|
20
|
|
||||
Total derivatives designated as cash flow hedges
|
$
|
57
|
|
|
$
|
(21
|
)
|
|
|
|
$
|
14
|
|
|
$
|
20
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives designated as net investment hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
$
|
75
|
|
|
$
|
54
|
|
|
Gains (losses) related to investment securities, net
|
|
$
|
—
|
|
|
$
|
—
|
|
Total derivatives designated as net investment hedges
|
75
|
|
|
54
|
|
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Total
|
$
|
132
|
|
|
$
|
33
|
|
|
|
|
$
|
14
|
|
|
$
|
20
|
|
Assets:
|
September 30, 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
|
$
|
13,912
|
|
|
$
|
(8,093
|
)
|
|
$
|
5,819
|
|
|
$
|
—
|
|
|
$
|
5,819
|
|
Interest rate contracts(6)
|
22
|
|
|
(8
|
)
|
|
14
|
|
|
—
|
|
|
14
|
|
|||||
Cash collateral and securities netting
|
NA
|
|
|
(793
|
)
|
|
(793
|
)
|
|
(477
|
)
|
|
(1,270
|
)
|
|||||
Total derivatives
|
13,934
|
|
|
(8,894
|
)
|
|
5,040
|
|
|
(477
|
)
|
|
4,563
|
|
|||||
Other financial instruments:
|
|
|
|
|
|
|
|||||||||||||
Resale agreements and securities borrowing(7)(8)
|
155,464
|
|
|
(129,754
|
)
|
|
25,710
|
|
|
(24,595
|
)
|
|
1,115
|
|
|||||
Total derivatives and other financial instruments
|
$
|
169,398
|
|
|
$
|
(138,648
|
)
|
|
$
|
30,750
|
|
|
$
|
(25,072
|
)
|
|
$
|
5,678
|
|
Assets:
|
December 31, 2018
|
||||||||||||||||||
|
Gross Amounts of Recognized
Assets(1)(2)
|
|
Gross Amounts Offset in Statement of Condition(3)
|
|
Net Amounts of Assets Presented in Statement of Condition
|
|
Gross Amounts Not Offset in Statement of Condition
|
||||||||||||
(In millions)
|
|
|
|
Cash and Securities Received(4)
|
|
Net Amount(5)
|
|||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts
|
$
|
16,386
|
|
|
$
|
(10,223
|
)
|
|
$
|
6,163
|
|
|
$
|
—
|
|
|
$
|
6,163
|
|
Interest rate contracts(6)
|
13
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
|||||
Cash collateral and securities netting
|
NA
|
|
|
(987
|
)
|
|
(987
|
)
|
|
(220
|
)
|
|
(1,207
|
)
|
|||||
Total derivatives
|
16,399
|
|
|
(11,210
|
)
|
|
5,189
|
|
|
(220
|
)
|
|
4,969
|
|
|||||
Other financial instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Resale agreements and securities borrowing(7)(8)
|
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
|
|
|
|
|
|
|
Liabilities:
|
September 30, 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
|
$
|
14,189
|
|
|
$
|
(8,093
|
)
|
|
$
|
6,096
|
|
|
$
|
—
|
|
|
$
|
6,096
|
|
Interest rate contracts(6)
|
51
|
|
|
(8
|
)
|
|
43
|
|
|
—
|
|
|
43
|
|
|||||
Other derivative contracts
|
207
|
|
|
—
|
|
|
207
|
|
|
—
|
|
|
207
|
|
|||||
Cash collateral and securities netting
|
NA
|
|
|
(1,432
|
)
|
|
(1,432
|
)
|
|
(796
|
)
|
|
(2,228
|
)
|
|||||
Total derivatives
|
14,447
|
|
|
(9,533
|
)
|
|
4,914
|
|
|
(796
|
)
|
|
4,118
|
|
|||||
Other financial instruments:
|
|
|
|
|
|
|
|||||||||||||
Repurchase agreements and securities lending(7)(8)
|
145,522
|
|
|
(129,754
|
)
|
|
15,768
|
|
|
(14,453
|
)
|
|
1,315
|
|
|||||
Total derivatives and other financial instruments
|
$
|
159,969
|
|
|
$
|
(139,287
|
)
|
|
$
|
20,682
|
|
|
$
|
(15,249
|
)
|
|
$
|
5,433
|
|
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)(8)
|
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
|
|
|
|
|
|
|
|
As of September 30, 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
|
$
|
126,017
|
|
|
$
|
—
|
|
|
$
|
126,017
|
|
|
$
|
88,904
|
|
|
$
|
—
|
|
|
$
|
88,904
|
|
Total
|
126,017
|
|
|
—
|
|
|
126,017
|
|
|
88,904
|
|
|
—
|
|
|
88,904
|
|
||||||
Securities lending transactions:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
US Treasury and agency securities
|
22
|
|
|
—
|
|
|
22
|
|
|
249
|
|
|
—
|
|
|
249
|
|
||||||
Corporate debt securities
|
430
|
|
|
—
|
|
|
430
|
|
|
278
|
|
|
—
|
|
|
278
|
|
||||||
Equity securities
|
10,463
|
|
|
91
|
|
|
10,554
|
|
|
6,426
|
|
|
137
|
|
|
6,563
|
|
||||||
Other(1)
|
8,499
|
|
|
—
|
|
|
8,499
|
|
|
8,500
|
|
|
—
|
|
|
8,500
|
|
||||||
Total
|
19,414
|
|
|
91
|
|
|
19,505
|
|
|
15,453
|
|
|
137
|
|
|
15,590
|
|
||||||
Gross amount of recognized liabilities for repurchase agreements and securities lending
|
$
|
145,431
|
|
|
$
|
91
|
|
|
$
|
145,522
|
|
|
$
|
104,357
|
|
|
$
|
137
|
|
|
$
|
104,494
|
|
|
|
|
|
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Commitments:
|
|
|
|
||||
Unfunded credit facilities(1)
|
$
|
29,681
|
|
|
$
|
28,951
|
|
Guarantees(2):
|
|
|
|
||||
Indemnified securities financing
|
$
|
386,978
|
|
|
$
|
342,337
|
|
Standby letters of credit
|
3,307
|
|
|
2,985
|
|
|
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Fair value of indemnified securities financing
|
$
|
386,978
|
|
|
$
|
342,337
|
|
Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing
|
406,202
|
|
|
357,893
|
|
||
Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements
|
48,263
|
|
|
42,610
|
|
||
Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements
|
51,717
|
|
|
45,064
|
|
|
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
|
|
|
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||
|
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
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
(Dollars in millions, except per share amounts)
|
Dividends Declared per Share
|
|
Dividends Declared per Depositary Share
|
|
Total
|
|
Dividends Declared per Share
|
|
Dividends Declared per Depositary Share
|
|
Total
|
||||||||||||
Preferred Stock:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Series C
|
$
|
3,939
|
|
|
$
|
0.99
|
|
|
$
|
19
|
|
|
$
|
3,939
|
|
|
$
|
0.99
|
|
|
$
|
19
|
|
Series D
|
4,425
|
|
|
1.11
|
|
|
33
|
|
|
4,425
|
|
|
1.11
|
|
|
33
|
|
||||||
Series E
|
4,500
|
|
|
1.14
|
|
|
33
|
|
|
4,500
|
|
|
1.14
|
|
|
33
|
|
||||||
Series F
|
5,250
|
|
|
52.50
|
|
|
40
|
|
|
5,250
|
|
|
52.50
|
|
|
40
|
|
||||||
Series G
|
4,014
|
|
|
0.99
|
|
|
21
|
|
|
4,014
|
|
|
0.99
|
|
|
21
|
|
||||||
Series H
|
2,813
|
|
|
28.13
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
|
|
|
$
|
160
|
|
|
|
|
|
|
$
|
146
|
|
|
|
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||
|
Shares Acquired
(In millions) |
|
Average Cost per Share
|
|
Total Acquired
(In millions) |
|
Shares Acquired
(In millions) |
|
Average Cost per Share
|
|
Total Acquired
(In millions) |
||||||||||
2018 Program
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
8.8
|
|
|
$
|
67.97
|
|
|
$
|
600
|
|
2019 Program
|
9.4
|
|
|
$
|
53.15
|
|
|
$
|
500
|
|
|
9.4
|
|
|
$
|
53.15
|
|
|
$
|
500
|
|
|
Three Months Ended September 30,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
Dividends Declared per Share
|
|
Total
(In millions)
|
|
Dividends Declared per Share
|
|
Total
(In millions)
|
||||||||
Common Stock
|
$
|
0.52
|
|
|
$
|
189
|
|
|
$
|
0.47
|
|
|
$
|
179
|
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
Dividends Declared per Share
|
|
Total
(In millions)
|
|
Dividends Declared per Share
|
|
Total
(In millions)
|
||||||||
Common Stock
|
$
|
1.46
|
|
|
$
|
541
|
|
|
$
|
1.31
|
|
|
$
|
486
|
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Net unrealized (losses) on cash flow hedges
|
$
|
(63
|
)
|
|
$
|
(89
|
)
|
Net unrealized gains (losses) on available-for-sale securities portfolio
|
509
|
|
|
(193
|
)
|
||
Net unrealized gains related to reclassified available-for-sale securities
|
56
|
|
|
58
|
|
||
Net unrealized gains (losses) on available-for-sale securities
|
565
|
|
|
(135
|
)
|
||
Net unrealized (losses) on available-for-sale securities designated in fair value hedges
|
(41
|
)
|
|
(40
|
)
|
||
Net unrealized gains on hedges of net investments in non-U.S. subsidiaries
|
91
|
|
|
16
|
|
||
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit
|
(1
|
)
|
|
(2
|
)
|
||
Net unrealized (losses) on retirement plans
|
(180
|
)
|
|
(143
|
)
|
||
Foreign currency translation
|
(1,356
|
)
|
|
(963
|
)
|
||
Total
|
$
|
(985
|
)
|
|
$
|
(1,356
|
)
|
|
Nine Months Ended September 30, 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
|
22
|
|
|
678
|
|
|
78
|
|
|
3
|
|
|
—
|
|
|
(326
|
)
|
|
455
|
|
|||||||
Reclassification of certain tax effects(1)
|
(6
|
)
|
|
21
|
|
|
(3
|
)
|
|
(1
|
)
|
|
(28
|
)
|
|
(67
|
)
|
|
(84
|
)
|
|||||||
Amounts reclassified into (out of) earnings
|
10
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|||||||
Other comprehensive income (loss)
|
26
|
|
|
699
|
|
|
75
|
|
|
1
|
|
|
(37
|
)
|
|
(393
|
)
|
|
371
|
|
|||||||
Balance as of September 30, 2019
|
$
|
(63
|
)
|
|
$
|
524
|
|
|
$
|
91
|
|
|
$
|
(1
|
)
|
|
$
|
(180
|
)
|
|
$
|
(1,356
|
)
|
|
$
|
(985
|
)
|
|
Nine Months Ended September 30, 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
|
(42
|
)
|
|
(452
|
)
|
|
54
|
|
|
4
|
|
|
—
|
|
|
(298
|
)
|
|
(734
|
)
|
|||||||
Amounts reclassified into (out of) earnings
|
15
|
|
|
6
|
|
|
—
|
|
|
(3
|
)
|
|
14
|
|
|
—
|
|
|
32
|
|
|||||||
Other comprehensive income (loss)
|
(27
|
)
|
|
(446
|
)
|
|
54
|
|
|
1
|
|
|
14
|
|
|
(298
|
)
|
|
(702
|
)
|
|||||||
Balance as of September 30, 2018
|
$
|
(83
|
)
|
|
$
|
(343
|
)
|
|
$
|
(11
|
)
|
|
$
|
(5
|
)
|
|
$
|
(156
|
)
|
|
$
|
(1,113
|
)
|
|
$
|
(1,711
|
)
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
||||||
|
2019
|
|
2018
|
|
|
||||
(In millions)
|
Amounts Reclassified into
(out of) Earnings(1) |
|
Affected Line Item in Consolidated Statement of Income
|
||||||
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
|
)
|
|
Losses reclassified (from) to other comprehensive income
|
||
Cash flow hedges:
|
|
|
|
|
|
||||
Gain or (loss) reclassified from accumulated other comprehensive income into Income, net of related taxes of $1 and $2
|
3
|
|
|
$
|
4
|
|
|
Net interest income reclassified from other comprehensive income
|
|
Retirement plans:
|
|
|
|
|
|
||||
Amortization of actuarial losses, net of related taxes of ($1) and $1, respectively
|
(1
|
)
|
|
1
|
|
|
Compensation and employee benefits expenses
|
||
Total reclassifications out of Accumulated other comprehensive loss
|
$
|
2
|
|
|
$
|
4
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
||||||
|
2019
|
|
2018
|
|
|
||||
(In millions)
|
Amounts Reclassified into
(out of) Earnings |
|
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 ($2), respectively
|
$
|
—
|
|
|
$
|
6
|
|
|
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 $1, respectively
|
(1
|
)
|
|
(3
|
)
|
|
Losses reclassified (from) to other comprehensive income
|
||
Cash flow hedges:
|
|
|
|
|
|
||||
Gain reclassified from accumulated other comprehensive income into Income, net of related taxes of $4 and $6
|
10
|
|
|
15
|
|
|
Net interest income reclassified from other comprehensive income
|
||
Retirement plans:
|
|
|
|
|
|
||||
Amortization of actuarial losses, net of related taxes of ($5) and $5, respectively
|
(9
|
)
|
|
14
|
|
|
Compensation and employee benefits expenses
|
||
Total reclassifications (into) out of Accumulated other comprehensive loss
|
$
|
—
|
|
|
$
|
32
|
|
|
|
|
State Street Corporation
|
|
State Street Bank
|
||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Basel III Advanced Approaches September 30, 2019
|
|
Basel III Standardized Approach September 30, 2019(2)
|
|
Basel III Advanced Approaches December 31, 2018(1)
|
|
Basel III Standardized Approach December 31, 2018(2)
|
|
Basel III Advanced Approaches September 30, 2019
|
|
Basel III Standardized Approach September 30, 2019(2)
|
|
Basel III Advanced Approaches December 31, 2018(1)
|
|
Basel III Standardized Approach December 31, 2018(2)
|
||||||||||||||||||||
Common shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Common stock and related surplus
|
$
|
10,621
|
|
|
$
|
10,621
|
|
|
$
|
10,565
|
|
|
$
|
10,565
|
|
|
$
|
12,878
|
|
|
$
|
12,878
|
|
|
$
|
12,894
|
|
|
$
|
12,894
|
|
||||
Retained earnings
|
21,612
|
|
|
21,612
|
|
|
20,606
|
|
|
20,606
|
|
|
14,194
|
|
|
14,194
|
|
|
14,261
|
|
|
14,261
|
|
||||||||||||
Accumulated other comprehensive income (loss)
|
(1,000
|
)
|
|
(1,000
|
)
|
|
(1,332
|
)
|
|
(1,332
|
)
|
|
(761
|
)
|
|
(761
|
)
|
|
(1,112
|
)
|
|
(1,112
|
)
|
||||||||||||
Treasury stock, at cost
|
(9,729
|
)
|
|
(9,729
|
)
|
|
(8,715
|
)
|
|
(8,715
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||
Total
|
21,504
|
|
|
21,504
|
|
|
21,124
|
|
|
21,124
|
|
|
26,311
|
|
|
26,311
|
|
|
26,043
|
|
|
26,043
|
|
||||||||||||
Regulatory capital adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Goodwill and other intangible assets, net of associated deferred tax liabilities
|
(9,117
|
)
|
|
(9,117
|
)
|
|
(9,350
|
)
|
|
(9,350
|
)
|
|
(8,845
|
)
|
|
(8,845
|
)
|
|
(9,073
|
)
|
|
(9,073
|
)
|
||||||||||||
Other adjustments(2)
|
(158
|
)
|
|
(158
|
)
|
|
(194
|
)
|
|
(194
|
)
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
|
(29
|
)
|
||||||||||||
Common equity tier 1 capital
|
12,229
|
|
|
12,229
|
|
|
11,580
|
|
|
11,580
|
|
|
17,466
|
|
|
17,466
|
|
|
16,941
|
|
|
16,941
|
|
||||||||||||
Preferred stock
|
3,690
|
|
|
3,690
|
|
|
3,690
|
|
|
3,690
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||
Tier 1 capital
|
15,919
|
|
|
15,919
|
|
|
15,270
|
|
|
15,270
|
|
|
17,466
|
|
|
17,466
|
|
|
16,941
|
|
|
16,941
|
|
||||||||||||
Qualifying subordinated long-term debt
|
607
|
|
|
607
|
|
|
778
|
|
|
778
|
|
|
604
|
|
|
604
|
|
|
776
|
|
|
776
|
|
||||||||||||
Allowance for loan and lease losses and other
|
4
|
|
|
86
|
|
|
14
|
|
|
83
|
|
|
3
|
|
|
86
|
|
|
11
|
|
|
83
|
|
||||||||||||
Total capital
|
$
|
16,530
|
|
|
$
|
16,612
|
|
|
$
|
16,062
|
|
|
$
|
16,131
|
|
|
$
|
18,073
|
|
|
$
|
18,156
|
|
|
$
|
17,728
|
|
|
$
|
17,800
|
|
||||
Risk-weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Credit risk(3)
|
$
|
51,726
|
|
|
$
|
107,013
|
|
|
$
|
47,738
|
|
|
$
|
97,303
|
|
|
$
|
49,183
|
|
|
$
|
104,242
|
|
|
$
|
45,565
|
|
|
$
|
94,776
|
|
||||
Operational risk(4)
|
46,913
|
|
|
NA
|
|
|
46,060
|
|
|
NA
|
|
|
44,125
|
|
|
NA
|
|
|
44,494
|
|
|
NA
|
|
||||||||||||
Market risk
|
1,688
|
|
|
1,688
|
|
|
1,517
|
|
|
1,517
|
|
|
1,688
|
|
|
1,688
|
|
|
1,517
|
|
|
1,517
|
|
||||||||||||
Total risk-weighted assets
|
$
|
100,327
|
|
|
$
|
108,701
|
|
|
$
|
95,315
|
|
|
$
|
98,820
|
|
|
$
|
94,996
|
|
|
$
|
105,930
|
|
|
$
|
91,576
|
|
|
$
|
96,293
|
|
||||
Adjusted quarterly average assets
|
$
|
213,997
|
|
|
$
|
213,997
|
|
|
$
|
211,924
|
|
|
$
|
211,924
|
|
|
$
|
210,625
|
|
|
$
|
210,625
|
|
|
$
|
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
|
%
|
12.2
|
%
|
|
11.3
|
%
|
|
12.1
|
%
|
|
11.7
|
%
|
|
18.4
|
%
|
|
16.5
|
%
|
|
18.5
|
%
|
|
17.6
|
%
|
||||||||
Tier 1 capital
|
10.0
|
|
9.0
|
|
15.9
|
|
|
14.6
|
|
|
16.0
|
|
|
15.5
|
|
|
18.4
|
|
|
16.5
|
|
|
18.5
|
|
|
17.6
|
|
||||||||
Total capital
|
12.0
|
|
11.0
|
|
16.5
|
|
|
15.3
|
|
|
16.9
|
|
|
16.3
|
|
|
19.0
|
|
|
17.1
|
|
|
19.4
|
|
|
18.5
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest income:
|
|
|
|
|
|
|
|
||||||||
Interest-bearing deposits with banks
|
$
|
98
|
|
|
$
|
94
|
|
|
$
|
326
|
|
|
$
|
267
|
|
Investment securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and federal agencies
|
363
|
|
|
300
|
|
|
1,092
|
|
|
835
|
|
||||
State and political subdivisions
|
12
|
|
|
29
|
|
|
37
|
|
|
125
|
|
||||
Other investments
|
126
|
|
|
136
|
|
|
374
|
|
|
434
|
|
||||
Securities purchased under resale agreements
|
101
|
|
|
87
|
|
|
289
|
|
|
246
|
|
||||
Loans and leases
|
194
|
|
|
173
|
|
|
587
|
|
|
498
|
|
||||
Other interest-earning assets
|
107
|
|
|
97
|
|
|
330
|
|
|
275
|
|
||||
Total interest income
|
1,001
|
|
|
916
|
|
|
3,035
|
|
|
2,680
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
||||||||
Interest-bearing deposits
|
173
|
|
|
84
|
|
|
553
|
|
|
236
|
|
||||
Securities sold under repurchase agreements
|
7
|
|
|
4
|
|
|
27
|
|
|
11
|
|
||||
Other short-term borrowings
|
8
|
|
|
4
|
|
|
18
|
|
|
12
|
|
||||
Long-term debt
|
99
|
|
|
100
|
|
|
312
|
|
|
293
|
|
||||
Other interest-bearing liabilities
|
70
|
|
|
52
|
|
|
195
|
|
|
154
|
|
||||
Total interest expense
|
357
|
|
|
244
|
|
|
1,105
|
|
|
706
|
|
||||
Net interest income
|
$
|
644
|
|
|
$
|
672
|
|
|
$
|
1,930
|
|
|
$
|
1,974
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Professional services
|
$
|
70
|
|
|
$
|
79
|
|
|
$
|
235
|
|
|
$
|
247
|
|
Sales advertising public relations
|
29
|
|
|
29
|
|
|
83
|
|
|
84
|
|
||||
Regulatory fees and assessments
|
18
|
|
|
14
|
|
|
54
|
|
|
73
|
|
||||
Bank operations
|
9
|
|
|
14
|
|
|
30
|
|
|
53
|
|
||||
Insurance
|
7
|
|
|
7
|
|
|
21
|
|
|
22
|
|
||||
Other
|
135
|
|
|
108
|
|
|
394
|
|
|
347
|
|
||||
Total other expenses
|
$
|
268
|
|
|
$
|
251
|
|
|
$
|
817
|
|
|
$
|
826
|
|
(In millions)
|
Employee
Related Costs |
|
Real Estate
Actions |
|
Asset and Other Write-offs
|
|
Total
|
||||||||
Accrual balance at December 31, 2017
|
$
|
166
|
|
|
$
|
32
|
|
|
$
|
3
|
|
|
$
|
201
|
|
Payments and other adjustments
|
(22
|
)
|
|
(4
|
)
|
|
—
|
|
|
(26
|
)
|
||||
Accrual balance at March 31, 2018
|
$
|
144
|
|
|
$
|
28
|
|
|
$
|
3
|
|
|
$
|
175
|
|
Accruals for repositioning charges
|
61
|
|
|
16
|
|
|
—
|
|
|
77
|
|
||||
Payments and other adjustments
|
(36
|
)
|
|
(3
|
)
|
|
—
|
|
|
(39
|
)
|
||||
Accrual balance at June 30, 2018
|
$
|
169
|
|
|
$
|
41
|
|
|
$
|
3
|
|
|
$
|
213
|
|
Accruals for Beacon
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Payments and other adjustments
|
(18
|
)
|
|
(4
|
)
|
|
(1
|
)
|
|
(23
|
)
|
||||
Accrual balance at September 30, 2018
|
$
|
150
|
|
|
$
|
37
|
|
|
$
|
2
|
|
|
$
|
189
|
|
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
|
|
Accruals for Beacon
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
Payments and other adjustments
|
(51
|
)
|
|
(1
|
)
|
|
—
|
|
|
(52
|
)
|
||||
Accrual balance at June 30, 2019
|
$
|
197
|
|
|
$
|
11
|
|
|
$
|
1
|
|
|
$
|
209
|
|
Payments and other adjustments
|
(62
|
)
|
|
(2
|
)
|
|
—
|
|
|
(64
|
)
|
||||
Accrual balance at September 30, 2019
|
$
|
135
|
|
|
$
|
9
|
|
|
$
|
1
|
|
|
$
|
145
|
|
(In millions)
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
||||
Finance lease:
|
|
|
|
||||
Amortization of right-of-use assets
|
$
|
5
|
|
|
$
|
16
|
|
Interest on lease liabilities
|
3
|
|
|
9
|
|
||
Total finance lease expense
|
8
|
|
|
25
|
|
||
Sublease income
|
(2
|
)
|
|
(7
|
)
|
||
Net finance lease expense
|
6
|
|
|
18
|
|
||
Operating lease:
|
|
|
|
||||
Operating lease expense
|
43
|
|
|
132
|
|
||
Sublease income
|
(1
|
)
|
|
(4
|
)
|
||
Net operating lease expense
|
42
|
|
|
128
|
|
||
Net lease expense
|
$
|
48
|
|
|
$
|
146
|
|
|
|
|
|
||||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
||||
Operating cash flows from finance leases
|
$
|
2
|
|
|
$
|
8
|
|
Operating cash flows from operating leases
|
43
|
|
|
142
|
|
||
Financing cash flows from finance leases
|
8
|
|
|
47
|
|
||
Right-of-use assets obtained in exchange for new lease obligations:
|
|
|
|
||||
Operating leases
|
$
|
21
|
|
|
$
|
54
|
|
Finance leases
|
—
|
|
|
—
|
|
(In millions)
|
Operating Leases
|
|
Finance Leases
|
|
Total
|
||||||
2019 (excluding the first nine months ended 2019)
|
$
|
48
|
|
|
$
|
10
|
|
|
$
|
58
|
|
2020
|
182
|
|
|
42
|
|
|
224
|
|
|||
2021
|
175
|
|
|
42
|
|
|
217
|
|
|||
2022
|
153
|
|
|
42
|
|
|
195
|
|
|||
2023
|
133
|
|
|
30
|
|
|
163
|
|
|||
Thereafter
|
393
|
|
|
—
|
|
|
393
|
|
|||
Total future minimum lease payments
|
1,084
|
|
|
166
|
|
|
1,250
|
|
|||
Less imputed interest
|
(107
|
)
|
|
(22
|
)
|
|
(129
|
)
|
|||
Total
|
$
|
977
|
|
|
$
|
144
|
|
|
$
|
1,121
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(Dollars in millions, except per share amounts)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
583
|
|
|
$
|
764
|
|
|
$
|
1,678
|
|
|
$
|
2,156
|
|
Less:
|
|
|
|
|
|
|
|
||||||||
Preferred stock dividends
|
(55
|
)
|
|
(55
|
)
|
|
(160
|
)
|
|
(146
|
)
|
||||
Dividends and undistributed earnings allocated to participating securities(1)
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
||||
Net income available to common shareholders
|
$
|
528
|
|
|
$
|
708
|
|
|
$
|
1,517
|
|
|
$
|
2,008
|
|
Average common shares outstanding (In thousands):
|
|
|
|
|
|
|
|
||||||||
Basic average common shares
|
366,732
|
|
|
374,963
|
|
|
372,766
|
|
|
369,368
|
|
||||
Effect of dilutive securities: equity-based awards
|
3,863
|
|
|
4,420
|
|
|
3,595
|
|
|
4,696
|
|
||||
Diluted average common shares
|
370,595
|
|
|
379,383
|
|
|
376,361
|
|
|
374,064
|
|
||||
Anti-dilutive securities(2)
|
3,037
|
|
|
1,360
|
|
|
2,559
|
|
|
871
|
|
||||
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.44
|
|
|
$
|
1.89
|
|
|
$
|
4.07
|
|
|
$
|
5.44
|
|
Diluted(3)
|
1.42
|
|
|
1.87
|
|
|
4.03
|
|
|
5.37
|
|
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||||||||||
|
Investment
Servicing |
|
Investment
Management |
|
Other
|
|
Total
|
||||||||||||||||||||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Servicing fees
|
$
|
1,272
|
|
|
$
|
1,333
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,272
|
|
|
$
|
1,333
|
|
Management fees
|
—
|
|
|
—
|
|
|
445
|
|
|
474
|
|
|
—
|
|
|
—
|
|
|
445
|
|
|
474
|
|
||||||||
Foreign exchange trading services
|
249
|
|
|
255
|
|
|
35
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
284
|
|
|
288
|
|
||||||||
Securities finance
|
114
|
|
|
128
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
116
|
|
|
128
|
|
||||||||
Processing fees and other
|
140
|
|
|
87
|
|
|
2
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
142
|
|
|
95
|
|
||||||||
Total fee revenue
|
1,775
|
|
|
1,803
|
|
|
484
|
|
|
515
|
|
|
—
|
|
|
—
|
|
|
2,259
|
|
|
2,318
|
|
||||||||
Net interest income
|
649
|
|
|
680
|
|
|
(5
|
)
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
644
|
|
|
672
|
|
||||||||
Gains (losses) related to investment securities, net
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||||
Total revenue
|
2,424
|
|
|
2,482
|
|
|
479
|
|
|
507
|
|
|
—
|
|
|
—
|
|
|
2,903
|
|
|
2,989
|
|
||||||||
Provision for loan losses
|
2
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
5
|
|
||||||||
Total expenses
|
1,762
|
|
|
1,705
|
|
|
373
|
|
|
386
|
|
|
45
|
|
|
—
|
|
|
2,180
|
|
|
2,091
|
|
||||||||
Income before income tax expense
|
$
|
660
|
|
|
$
|
772
|
|
|
$
|
106
|
|
|
$
|
121
|
|
|
$
|
(45
|
)
|
|
$
|
—
|
|
|
$
|
721
|
|
|
$
|
893
|
|
Pre-tax margin
|
27
|
%
|
|
31
|
%
|
|
22
|
%
|
|
24
|
%
|
|
|
|
|
|
25
|
%
|
|
30
|
%
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||||
|
Investment
Servicing |
|
Investment
Management |
|
Other
|
|
Total
|
||||||||||||||||||||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Servicing fees
|
$
|
3,775
|
|
|
$
|
4,135
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,775
|
|
|
$
|
4,135
|
|
Management fees
|
—
|
|
|
—
|
|
|
1,306
|
|
|
1,411
|
|
|
—
|
|
|
—
|
|
|
1,306
|
|
|
1,411
|
|
||||||||
Foreign exchange trading services
|
735
|
|
|
810
|
|
|
102
|
|
|
97
|
|
|
—
|
|
|
—
|
|
|
837
|
|
|
907
|
|
||||||||
Securities finance
|
353
|
|
|
423
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
360
|
|
|
423
|
|
||||||||
Processing fees and other
|
483
|
|
|
243
|
|
|
18
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
501
|
|
|
252
|
|
||||||||
Total fee revenue
|
5,346
|
|
|
5,611
|
|
|
1,433
|
|
|
1,517
|
|
|
—
|
|
|
—
|
|
|
6,779
|
|
|
7,128
|
|
||||||||
Net interest income
|
1,951
|
|
|
1,991
|
|
|
(21
|
)
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
1,930
|
|
|
1,974
|
|
||||||||
Gains (losses) related to investment securities, net
|
(1
|
)
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
6
|
|
||||||||
Total revenue
|
7,296
|
|
|
7,608
|
|
|
1,412
|
|
|
1,500
|
|
|
—
|
|
|
—
|
|
|
8,708
|
|
|
9,108
|
|
||||||||
Provision for loan losses
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
||||||||
Total expenses
|
5,391
|
|
|
5,279
|
|
|
1,156
|
|
|
1,173
|
|
|
80
|
|
|
77
|
|
|
6,627
|
|
|
6,529
|
|
||||||||
Income before income tax expense
|
$
|
1,898
|
|
|
$
|
2,322
|
|
|
$
|
256
|
|
|
$
|
327
|
|
|
$
|
(80
|
)
|
|
$
|
(77
|
)
|
|
$
|
2,074
|
|
|
$
|
2,572
|
|
Pre-tax margin
|
26
|
%
|
|
31
|
%
|
|
18
|
%
|
|
22
|
%
|
|
|
|
|
|
24
|
%
|
|
28
|
%
|
|
Three Months Ended September 30, 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
|
$
|
1,272
|
|
|
$
|
—
|
|
|
$
|
1,272
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,272
|
|
Management fees
|
—
|
|
|
—
|
|
|
—
|
|
|
445
|
|
|
—
|
|
|
445
|
|
|
445
|
|
|||||||
Foreign exchange trading services
|
90
|
|
|
159
|
|
|
249
|
|
|
35
|
|
|
—
|
|
|
35
|
|
|
284
|
|
|||||||
Securities finance
|
64
|
|
|
50
|
|
|
114
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
116
|
|
|||||||
Processing fees and other
|
97
|
|
|
43
|
|
|
140
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
142
|
|
|||||||
Total fee revenue
|
1,523
|
|
|
252
|
|
|
1,775
|
|
|
480
|
|
|
4
|
|
|
484
|
|
|
2,259
|
|
|||||||
Net interest income
|
—
|
|
|
649
|
|
|
649
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|
644
|
|
|||||||
Gains (losses) related to investment securities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total revenue
|
$
|
1,523
|
|
|
$
|
901
|
|
|
$
|
2,424
|
|
|
$
|
480
|
|
|
$
|
(1
|
)
|
|
$
|
479
|
|
|
$
|
2,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Three Months Ended September 30, 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
|
$
|
1,333
|
|
|
$
|
—
|
|
|
$
|
1,333
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,333
|
|
Management fees
|
—
|
|
|
—
|
|
|
—
|
|
|
474
|
|
|
—
|
|
|
474
|
|
|
474
|
|
|||||||
Foreign exchange trading services
|
89
|
|
|
166
|
|
|
255
|
|
|
33
|
|
|
—
|
|
|
33
|
|
|
288
|
|
|||||||
Securities finance
|
73
|
|
|
55
|
|
|
128
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
128
|
|
|||||||
Processing fees and other
|
27
|
|
|
60
|
|
|
87
|
|
|
—
|
|
|
8
|
|
|
8
|
|
|
95
|
|
|||||||
Total fee revenue
|
1,522
|
|
|
281
|
|
|
1,803
|
|
|
507
|
|
|
8
|
|
|
515
|
|
|
2,318
|
|
|||||||
Net interest income
|
—
|
|
|
680
|
|
|
680
|
|
|
—
|
|
|
(8
|
)
|
|
(8
|
)
|
|
672
|
|
|||||||
Gains (losses) related to investment securities, net
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||||
Total revenue
|
$
|
1,522
|
|
|
$
|
960
|
|
|
$
|
2,482
|
|
|
$
|
507
|
|
|
$
|
—
|
|
|
$
|
507
|
|
|
$
|
2,989
|
|
|
Nine Months Ended September 30, 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
|
$
|
3,775
|
|
|
$
|
—
|
|
|
$
|
3,775
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,775
|
|
Management fees
|
—
|
|
|
—
|
|
|
—
|
|
|
1,306
|
|
|
—
|
|
|
1,306
|
|
|
1,306
|
|
|||||||
Foreign exchange trading services
|
258
|
|
|
477
|
|
|
735
|
|
|
102
|
|
|
—
|
|
|
102
|
|
|
837
|
|
|||||||
Securities finance
|
209
|
|
|
144
|
|
|
353
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
360
|
|
|||||||
Processing fees and other
|
317
|
|
|
166
|
|
|
483
|
|
|
—
|
|
|
18
|
|
|
18
|
|
|
501
|
|
|||||||
Total fee revenue
|
4,559
|
|
|
787
|
|
|
5,346
|
|
|
1,408
|
|
|
25
|
|
|
1,433
|
|
|
6,779
|
|
|||||||
Net interest income
|
—
|
|
|
1,951
|
|
|
1,951
|
|
|
—
|
|
|
(21
|
)
|
|
(21
|
)
|
|
1,930
|
|
|||||||
Gains (losses) related to investment securities, net
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||||
Total revenue
|
$
|
4,559
|
|
|
$
|
2,737
|
|
|
$
|
7,296
|
|
|
$
|
1,408
|
|
|
$
|
4
|
|
|
$
|
1,412
|
|
|
$
|
8,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Nine Months Ended September 30, 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
|
$
|
4,135
|
|
|
$
|
—
|
|
|
$
|
4,135
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,135
|
|
Management fees
|
—
|
|
|
—
|
|
|
—
|
|
|
1,411
|
|
|
—
|
|
|
1,411
|
|
|
1,411
|
|
|||||||
Foreign exchange trading services
|
275
|
|
|
535
|
|
|
810
|
|
|
97
|
|
|
—
|
|
|
97
|
|
|
907
|
|
|||||||
Securities finance
|
240
|
|
|
183
|
|
|
423
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
423
|
|
|||||||
Processing fees and other
|
69
|
|
|
174
|
|
|
243
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|
252
|
|
|||||||
Total fee revenue
|
4,719
|
|
|
892
|
|
|
5,611
|
|
|
1,508
|
|
|
9
|
|
|
1,517
|
|
|
7,128
|
|
|||||||
Net interest income
|
—
|
|
|
1,991
|
|
|
1,991
|
|
|
—
|
|
|
(17
|
)
|
|
(17
|
)
|
|
1,974
|
|
|||||||
Gains (losses) related to investment securities, net
|
—
|
|
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||||
Total revenue
|
$
|
4,719
|
|
|
$
|
2,889
|
|
|
$
|
7,608
|
|
|
$
|
1,508
|
|
|
$
|
(8
|
)
|
|
$
|
1,500
|
|
|
$
|
9,108
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
(In millions)
|
Non-U.S.(1)
|
|
U.S.
|
|
Total
|
|
Non-U.S.(1)
|
|
U.S.
|
|
Total
|
||||||||||||
Total revenue
|
$
|
1,254
|
|
|
$
|
1,649
|
|
|
$
|
2,903
|
|
|
$
|
1,286
|
|
|
$
|
1,703
|
|
|
$
|
2,989
|
|
Income before income tax expense
|
344
|
|
|
377
|
|
|
721
|
|
|
405
|
|
|
488
|
|
|
893
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
(In millions)
|
Non-U.S.(1)
|
|
U.S.
|
|
Total
|
|
Non-U.S.(1)
|
|
U.S.
|
|
Total
|
||||||||||||
Total revenue
|
$
|
3,733
|
|
|
$
|
4,975
|
|
|
$
|
8,708
|
|
|
$
|
3,928
|
|
|
$
|
5,180
|
|
|
$
|
9,108
|
|
Income before income tax expense
|
911
|
|
|
1,163
|
|
|
2,074
|
|
|
1,031
|
|
|
1,541
|
|
|
2,572
|
|
|
|
|
ACRONYMS
|
|||
|
|
|
|
ABS
|
Asset-backed securities
|
G-SIB
|
Global systemically important bank
|
AFS
|
Available-for-sale
|
HQLA
|
High-quality liquid assets
|
ALLL
|
Allowance for loans and leases losses
|
HTM
|
Held-to-maturity
|
AOCI
|
Accumulated other comprehensive income (loss)
|
LCR
|
Liquidity coverage ratio
|
ASU
|
Accounting Standards Update
|
LIHTC
|
Low income housing tax credits
|
AUC/A
|
Assets under custody and/or administration
|
LTD
|
Long-term debt
|
AUM
|
Assets under management
|
MBS
|
Mortgage-backed securities
|
bps
|
Basis points
|
NII
|
Net interest income
|
CCAR
|
Comprehensive Capital Analysis and Review
|
NIM
|
Net interest margin
|
CET1
|
Common equity tier 1
|
OCI
|
Other comprehensive income (loss)
|
CVA
|
Credit valuation adjustment
|
OTTI
|
Other-than-temporary-impairment
|
DOJ
|
Department of Justice
|
PCAOB
|
Public Company Accounting Oversight Board
|
EPS
|
Earnings per share
|
RWA(1)
|
Risk-weighted assets
|
ETF
|
Exchange-traded fund
|
SEC
|
Securities and Exchange Commission
|
EVE
|
Economic value of equity
|
SLR
|
Supplementary leverage ratio
|
FDIC
|
Federal Deposit Insurance Corporation
|
SPDR
|
Spider; Standard and Poor's depository receipt
|
FHLB
|
Federal Home Loan Bank of Boston
|
SPOE Strategy
|
Single Point of Entry Strategy
|
FICC
|
Fixed Income Clearing Corporation
|
TLAC
|
Total loss-absorbing capacity
|
FTE
|
Fully taxable-equivalent
|
UOM
|
Unit of measure
|
FX
|
Foreign exchange
|
VaR
|
Value-at-Risk
|
GAAP
|
Generally accepted accounting principles
|
|
|
|
|
|
|
Total Number of Shares Purchased (In thousands)
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Program (In thousands)
|
|
Approximate Dollar Value of Shares That May Yet be Purchased Under Publicly Announced Program (In millions)
|
||||||
Period:
|
|
|
|
|
|
|
|
||||||
July 1 - July 31, 2019 (1)
|
6,708
|
|
|
$
|
53.15
|
|
|
6,708
|
|
|
$1,500(2)
|
|
|
August 1 - August 31, 2019 (1)
|
2,699
|
|
|
53.15
|
|
|
2,699
|
|
|
1,500
|
|
||
September 1 - September 30, 2019
|
—
|
|
|
—
|
|
|
—
|
|
|
1,500
|
|
||
Total
|
9,407
|
|
|
$
|
53.15
|
|
|
9,407
|
|
|
$
|
1,500
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Submitted electronically herewith
|
|
|
|
|
|
STATE STREET CORPORATION
|
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
|
|
|
|
Date:
|
October 25, 2019
|
|
By:
|
|
/s/ ERIC W. ABOAF
|
|
|
|
|
|
Eric W. Aboaf,
|
|
|
|
|
|
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
|
|
|
|
|
|
|
|
|
|
|
|
|
Date:
|
October 25, 2019
|
|
By:
|
|
/s/ IAN W. APPLEYARD
|
|
|
|
|
|
Ian W. Appleyard,
|
|
|
|
|
|
Executive Vice President, Global Controller and Chief Accounting Officer
(Principal Accounting Officer)
|
|
|
|
|
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of State Street Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present, in all material respects, the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
Date:
|
October 25, 2019
|
|
By:
|
/s/ RONALD P. O'HANLEY
|
|
|
|
|
Ronald P. O'Hanley,
|
|
|
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of State Street Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present, in all material respects, the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
Date:
|
October 25, 2019
|
|
By:
|
/s/ ERIC W. ABOAF
|
|
|
|
|
Eric W. Aboaf,
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
|
Date:
|
October 25, 2019
|
|
By:
|
/s/ RONALD P. O'HANLEY
|
|
|
|
|
Ronald P. O'Hanley,
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
Date:
|
October 25, 2019
|
|
By:
|
/s/ ERIC W. ABOAF
|
|
|
|
|
Eric W. Aboaf,
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|