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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 or organization)
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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.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.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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Page
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PART I. FINANCIAL INFORMATION
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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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Net Interest Income
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Provision for Credit Losses
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Expenses
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Acquisition Costs
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19
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Restructuring and Repositioning Charges
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19
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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
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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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Significant Accounting Estimates
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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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Consolidated Financial Statements
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Consolidated Statement of Income (unaudited)
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Consolidated Statement of Comprehensive Income (unaudited)
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Consolidated Statement of Condition
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Consolidated Statement of Changes in Shareholders' Equity (unaudited)
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Consolidated Statement of Cash Flows (unaudited)
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Note 1. Summary of Significant Accounting Policies
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Note 2. Fair Value
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Note 3. Investment Securities
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Note 4. Loans and Allowance for Credit Losses
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Note 5. Goodwill and Other Intangible Assets
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Note 6. Other Assets
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Note 7. Derivative Financial Instruments
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Note 8. Offsetting Arrangements
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Note 9. Commitments and Guarantees
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Note 10. Contingencies
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Note 11. Variable Interest Entities
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Note 12. Shareholders' Equity
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Note 13. Regulatory Capital
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Note 14. Net Interest Income
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Note 15. Expenses
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Note 16. Earnings Per Common Share
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Note 17. Line of Business Information
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Note 18. Revenue From Contracts with customers
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Note 19. Non-U.S. Activities
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Review Report of Independent Registered Public Accounting Firm
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PART II. OTHER INFORMATION
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
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Item 5. Other Information
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Item 6. Exhibits
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Signatures
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•
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accounting for fair value measurements;
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•
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impairment of goodwill and other intangible assets;
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•
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contingencies; and
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•
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allowance for credit losses.
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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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the significant risks and uncertainties for our business, results of operations and financial condition, as well as our regulatory capital and liquidity ratios and other regulatory requirements in the United States and internationally, caused by the COVID-19 pandemic, which will depend on several factors, including the scope and duration of the pandemic, its influence on the economy and financial markets, the effectiveness of our work from home arrangements and staffing levels in operational facilities, challenges associated with our return to office plans such as maintaining a safe office environment and integrating at-home and in-office staff, the impact of market participants on which we rely and actions taken by governmental authorities and other third parties in response to the pandemic and the impact of lower equity market valuations on our service and management fee revenue;
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•
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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 software and processing fees revenues;
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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
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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 impairment of such securities and the recognition of a provision for credit losses in our consolidated statement of income;
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our ability to attract and retain deposits and other low-cost, short-term funding; our ability to manage the level and pricing of such deposits and the relative portion of our deposits that are determined to be operational under regulatory guidelines; our ability to deploy deposits in a profitable manner consistent with our liquidity needs, regulatory requirements and risk profile; and the risks associated with the potential liquidity mismatch between short-term deposit funding and longer term investments;
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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 II/Markets in Financial Instruments Regulation); 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, cyber-security, resiliency, resolution planning and compliance programs, as well as changes in
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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 distribution of our capital or other specific capital actions or corporate activities, including, without limitation, acquisitions, investments in subsidiaries, dividends and stock repurchases, without which our growth plans, distributions to shareholders, share repurchase programs or other capital or corporate initiatives may be restricted;
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geopolitical risks applicable to our operations and activities in jurisdictions globally, including emerging markets and economies, that have the potential to disrupt or impose costs, delays or damages upon our, our clients', our counterparties' and suppliers' and our infrastructure providers' respective operations, activities and strategic planning and to compromise financial markets and stability;
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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 our operating model and the adequacy and resiliency of our controls or compliance programs;
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a cyber-security incident, or a failure to protect our systems and our, our clients' and others' information against cyber-attacks, could result in the theft, loss, unauthorized access to, disclosure, use or alteration of information, system failures, or loss of access to information; any such incident or failure could adversely impact our ability to conduct our businesses, damage our reputation and cause losses, potentially materially;
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•
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our ability to expand our use of technology to enhance the efficiency, accuracy and reliability of
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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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our ability to control operational and resiliency 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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economic or financial market disruptions in the U.S. or internationally, including those which may result from recessions or political instability; for example, the United Kingdom's (U.K.) 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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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
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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, adverse actions or penalties imposed by governmental authorities and costs associated with remediation of identified deficiencies;
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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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the potential for losses arising from our investments in sponsored investment funds;
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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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changes or potential changes to the competitive
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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 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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our ability to integrate CRD's front office software solutions with our middle and back office capabilities to develop our front-to-middle-to-back office State Street Alpha that is competitive, generates revenues in line with our expectations and meets our clients' requirements; the dependency of State Street Alpha on enhancements to our data management and the risks to our servicing model associated with increased exposure to client data;
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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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our ability to grow revenue, manage expenses, attract and retain highly skilled people and raise the capital necessary to achieve our business goals and comply with regulatory requirements and expectations;
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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 June 30,
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(Dollars in millions, except per share amounts)
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2020
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2019
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% Change
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Total fee revenue
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$
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2,378
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|
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$
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2,260
|
|
|
5
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%
|
|
Net interest income
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559
|
|
|
613
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(9
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)
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Total revenue
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2,937
|
|
|
2,873
|
|
|
2
|
|
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Provision for credit losses(1)
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52
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|
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1
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|
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nm
|
|
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Total expenses
|
2,082
|
|
|
2,154
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|
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(3
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)
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|||
Income before income tax expense
|
803
|
|
|
718
|
|
|
12
|
|
|||
Income tax expense
|
109
|
|
|
131
|
|
|
(17
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)
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Net income
|
$
|
694
|
|
|
$
|
587
|
|
|
18
|
|
|
Adjustments to net income:
|
|
|
|
|
|
|
|||||
Dividends on preferred stock(2)
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$
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(32
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)
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|
$
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(50
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)
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(36
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)
|
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Net income available to common shareholders
|
$
|
662
|
|
|
$
|
537
|
|
|
23
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|
|
Earnings per common share:
|
|
|
|
|
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|||||
Basic
|
$
|
1.88
|
|
|
$
|
1.44
|
|
|
31
|
|
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Diluted
|
1.86
|
|
|
1.42
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|
31
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Average common shares outstanding (in thousands):
|
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||||||||
Basic
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352,157
|
|
|
373,773
|
|
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(6
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)
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Diluted
|
356,413
|
|
|
377,577
|
|
|
(6
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)
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Cash dividends declared per common share
|
$
|
.52
|
|
|
$
|
.47
|
|
|
11
|
|
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Return on average common equity
|
12.1
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%
|
|
10.1
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%
|
|
200
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bps
|
|
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Pre-tax margin
|
27.3
|
|
|
25.0
|
|
|
230
|
|
|||
|
|
|
|
|
|
|
|||||
|
Six Months Ended June 30,
|
|
|
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|||||||
(Dollars in millions, except per share amounts)
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2020
|
|
2019
|
|
% Change
|
||||||
Total fee revenue
|
$
|
4,777
|
|
|
$
|
4,520
|
|
|
6
|
%
|
|
Net interest income
|
1,223
|
|
|
1,286
|
|
|
(5
|
)
|
|||
Total other income
|
2
|
|
|
(1
|
)
|
|
nm
|
|
|||
Total revenue
|
6,002
|
|
|
5,805
|
|
|
3
|
|
|||
Provision for credit losses(1)
|
88
|
|
|
5
|
|
|
nm
|
|
|||
Total expenses
|
4,337
|
|
|
4,447
|
|
|
(2
|
)
|
|||
Income before income tax expense
|
1,577
|
|
|
1,353
|
|
|
17
|
|
|||
Income tax expense
|
249
|
|
|
258
|
|
|
(3
|
)
|
|||
Net income
|
$
|
1,328
|
|
|
$
|
1,095
|
|
|
21
|
|
|
Adjustments to net income:
|
|
|
|
|
|
||||||
Dividends on preferred stock(2)
|
$
|
(85
|
)
|
|
$
|
(105
|
)
|
|
(19
|
)
|
|
Earnings allocated to participating securities(3)
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|||
Net income available to common shareholders
|
$
|
1,242
|
|
|
$
|
989
|
|
|
26
|
|
|
Earnings per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
3.52
|
|
|
$
|
2.63
|
|
|
34
|
|
|
Diluted
|
3.48
|
|
|
2.61
|
|
|
33
|
|
|||
Average common shares outstanding (in thousands):
|
|
|
|
||||||||
Basic
|
352,952
|
|
|
375,832
|
|
|
(6
|
)
|
|||
Diluted
|
357,028
|
|
|
379,465
|
|
|
(6
|
)
|
|||
Cash dividends declared per common share
|
$
|
1.04
|
|
|
$
|
.94
|
|
|
11
|
|
|
Return on average common equity
|
11.5
|
%
|
|
9.4
|
%
|
|
210
|
bps
|
|
||
Pre-tax Margin
|
26.3
|
|
|
23.3
|
|
|
300
|
|
|
|
•
|
EPS of $1.86 in the second quarter of 2020 increased 31% compared to $1.42 in the same period in 2019.
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•
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The impact of the COVID-19 pandemic, and the actions we took to support our clients, the financial markets and the broader economy, is reflected in our results for the second quarter and first six months of 2020.
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◦
|
This includes accommodating higher than usual U.S. client deposits; and
|
◦
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an increase in FX trading services revenue in the three and six months ended June 30, 2020 as compared to the same periods in 2019.
|
◦
|
Operationally, we maintained business continuity, resiliency and operational effectiveness with approximately 90% of our global employees working from home through the end of the quarter.
|
◦
|
We continued to onboard new clients and managed elevated transaction volumes amidst the COVID-19 pandemic.
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◦
|
We actively assisted clients with access to various Federal Reserve programs that support the flow of liquidity and credit. We supported our clients' liquidity needs by processing nearly 50% of the value of commercial paper sold under the Money Market Mutual Fund Liquidity Facility (MMLF) and are custodian and administrator for four Federal Reserve programs: Commercial Paper Funding Facility, Main Street Lending Program, and Primary and Secondary Markets Corporate Credit Facilities.
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◦
|
On March 16, 2020, we announced, together with the other U.S. based G-SIBs, that we temporarily suspended our common stock repurchase program, in light of the COVID-19 pandemic. As a result, we had no repurchases of our common stock in the second quarter of 2020. In addition, we will not repurchase any common stock in the third quarter of 2020 under current Federal Reserve requirements.
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•
|
The impact of notable items in both the second quarters of 2020 and 2019 includes approximately $12 million of acquisition and restructuring costs, primarily related to CRD.
|
•
|
In the second quarter of 2020, return on equity of 12.1% increased from 10.1% in the same period in 2019, primarily due to an increase in net income available to common shareholders. Pre-tax margin of 27.3% in the second quarter of 2020 increased from 25.0% in the same period in 2019, primarily due to higher total revenue and lower expenses.
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•
|
Operating leverage was 5.5% in the second quarter of 2020. 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.
|
•
|
In June 2020, the Federal Reserve released results from the 2020 CCAR submission, which included preliminary SCB requirements for the twelve months starting October 1, 2020. We were notified by the Federal Reserve that our preliminary SCB is 2.5%, implying no change to our regulatory capital requirements at this time. The Federal Reserve will provide each participating CCAR bank organization with its final SCB by August 31, 2020. Due to the economic challenges created by the COVID-19 pandemic, all participating CCAR banks will be required to resubmit their capital plans within 45 days after the Federal Reserve provides updated scenarios. In line with the decision to administer a new stress test, the Federal Reserve is limiting the ability of all CCAR banking organizations to distribute capital during the third quarter of 2020 beyond common dividends at their current levels.
|
•
|
Total revenue and fee revenue increased 2% and 5%, respectively, in the second quarter of 2020 compared to the same period in 2019, primarily driven by increases in servicing fees, foreign exchange trading services and
|
•
|
Servicing fee revenue increased 2% in the second quarter of 2020 compared to the same period in 2019, primarily due to higher client activity and net new business, partially offset by moderating pricing headwinds.
|
•
|
Management fee revenue decreased 4% in the second quarter of 2020 compared to the same period in 2019, primarily due to institutional net outflows, partially offset by net inflows from cash and ETFs, particularly in SPDR® Portfolio and Sector ETFs.
|
•
|
Foreign exchange trading services increased 26% in the second quarter of 2020 compared to the same period in 2019, primarily reflecting significantly elevated FX volume and volatility.
|
•
|
Securities finance revenue decreased 27% in the second quarter of 2020 compared to the same period in 2019, primarily due to decreases in enhanced custody balances due to client deleveraging and lower agency lending revenues due to a mix shift to fixed income assets and lower spreads.
|
•
|
Software and processing fees revenue increased 46% in the second quarter of 2020 compared to the same period in 2019, primarily due to revenue associated with a significant CRD wealth client implementation and several client renewals, as well as market-related adjustments.
|
•
|
CRD contributed approximately $138 million and $61 million in total revenue and total expenses, respectively, in the second quarter of 2020, compared to $87 million and $46 million, respectively, in the same period in 2019. In addition, CRD-related expenses include $16 million and $17 million in amortization of other intangible assets in the second quarters of 2020 and 2019, respectively. CRD revenue with affiliated entities, which is eliminated in our consolidated financial statements, was $7 million and $4 million for the second quarters of 2020 and 2019, respectively.
|
•
|
NII decreased 9% in the second quarter of 2020 compared to the same period in 2019, primarily due to the impact of lower market rates, partially offset by higher deposit balances and our support for our clients' liquidity needs through the MMLF program.
|
•
|
In the second quarter of 2020, we recorded a provision for credit losses related to loans and
|
•
|
The second quarter provision compares to a $1 million provision for credit losses in the same period in 2019 (which was under the previous incurred loss model).
|
•
|
Total expenses decreased 3% in the second quarter of 2020 compared to the same period in 2019, primarily reflecting on-going expense management initiatives.
|
•
|
AUC/A increased 2% as of June 30, 2020 compared to June 30, 2019, primarily due to higher period-end market levels and client flows, partially offset by a previously announced client transition. In the second quarter of 2020, newly announced asset servicing mandates totaled approximately $162 billion. Servicing assets remaining to be installed in future periods totaled approximately $1.04 trillion as of June 30, 2020.
|
•
|
AUM increased 5% as of June 30, 2020 compared to June 30, 2019, primarily due to net inflows from cash and ETFs and higher period-end equity market levels, partially offset by institutional outflows.
|
•
|
In the second quarter of 2020, we returned a total of approximately $183 million to our shareholders in the form of common stock dividends.
|
◦
|
We declared aggregate common stock dividends of $0.52 per share, totaling $183 million in the second quarter of 2020, compared to $0.47 per share, totaling $175 million in the same period in 2019, representing an increase of approximately 11% on a per share basis.
|
◦
|
We had no repurchases of our common stock in the second quarter of 2020 under current Federal Reserve's requirements. In the second quarter of 2019, we acquired 4.6 million shares of common stock at an average per share cost of $65.25 and an aggregate cost of approximately $300 million.
|
•
|
Our binding CET1 capital ratio was 12.3% as of June 30, 2020 compared to 11.7% as of December 31, 2019, driven by higher retained earnings and a reduction in RWA, with significant headroom above the applicable regulatory requirement. Our Tier 1 leverage ratio decreased to 6.1% as of June 30, 2020, compared to 6.9% as of December 31, 2019, primarily due to increased leverage assets in the second quarter of 2020. Our standardized approach capital ratios were binding as of June 30, 2020.
|
TABLE 2: TOTAL REVENUE
|
||||||||||||
|
Three Months Ended June 30,
|
|
% Change
|
|||||||||
(Dollars in millions)
|
2020
|
|
2019
|
|
||||||||
Fee revenue:
|
|
|
|
|
|
|||||||
Servicing fees
|
$
|
1,272
|
|
|
$
|
1,252
|
|
|
2
|
%
|
||
Management fees
|
425
|
|
|
441
|
|
|
(4
|
)
|
||||
Foreign exchange trading services
|
344
|
|
|
273
|
|
|
26
|
|
||||
Securities finance
|
92
|
|
|
126
|
|
|
(27
|
)
|
||||
Software and processing fees
|
245
|
|
|
168
|
|
|
46
|
|
||||
Total fee revenue
|
2,378
|
|
|
2,260
|
|
|
5
|
|
||||
Net interest income:
|
|
|
|
|
|
|||||||
Interest income
|
674
|
|
|
1,007
|
|
|
(33
|
)
|
||||
Interest expense
|
115
|
|
|
394
|
|
|
(71
|
)
|
||||
Net interest income
|
559
|
|
|
613
|
|
|
(9
|
)
|
||||
Total revenue
|
$
|
2,937
|
|
|
$
|
2,873
|
|
|
2
|
|
||
|
|
|
|
|
|
|||||||
|
Six Months Ended June 30,
|
|
% Change
|
|||||||||
(Dollars in millions)
|
2020
|
|
2019
|
|
||||||||
Fee revenue:
|
|
|
|
|
|
|||||||
Servicing fees
|
$
|
2,559
|
|
|
$
|
2,503
|
|
|
2
|
%
|
||
Management fees
|
874
|
|
|
861
|
|
|
2
|
|
||||
Foreign exchange trading services
|
803
|
|
|
553
|
|
|
45
|
|
||||
Securities finance
|
184
|
|
|
244
|
|
|
(25
|
)
|
||||
Software and processing fees
|
357
|
|
|
359
|
|
|
(1
|
)
|
||||
Total fee revenue
|
4,777
|
|
|
4,520
|
|
|
6
|
|
||||
Net interest income:
|
|
|
|
|
|
|||||||
Interest income
|
1,542
|
|
|
2,034
|
|
|
(24
|
)
|
||||
Interest expense
|
319
|
|
|
748
|
|
|
(57
|
)
|
||||
Net interest income
|
1,223
|
|
|
1,286
|
|
|
(5
|
)
|
||||
Other income:
|
|
|
|
|
|
|||||||
Gains (losses) from sales of available-for-sale securities, net
|
2
|
|
|
—
|
|
|
nm
|
|
||||
Other income
|
—
|
|
|
(1
|
)
|
|
nm
|
|
||||
Total other income
|
2
|
|
—
|
|
(1
|
)
|
—
|
|
nm
|
|
||
Total revenue
|
$
|
6,002
|
|
|
$
|
5,805
|
|
|
3
|
|
|
|
•
|
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 June 30,
|
|
Three Months Ended June 30,
|
|
As of June 30,
|
|||||||||||||||||||||
|
2020
|
|
2019
|
|
% Change
|
|
2020
|
|
2019
|
|
% Change
|
|
2020
|
|
2019
|
|
% Change
|
|||||||||
S&P 500®
|
2,932
|
|
|
2,882
|
|
|
2
|
%
|
|
3,019
|
|
|
2,880
|
|
|
5
|
%
|
|
3,100
|
|
|
2,942
|
|
|
5
|
%
|
MSCI EAFE®
|
1,681
|
|
|
1,888
|
|
|
(11
|
)
|
|
1,721
|
|
|
1,887
|
|
|
(9
|
)
|
|
1,781
|
|
|
1,922
|
|
|
(7
|
)
|
MSCI® Emerging Markets
|
930
|
|
|
1,045
|
|
|
(11
|
)
|
|
950
|
|
|
1,044
|
|
|
(9
|
)
|
|
995
|
|
|
1,055
|
|
|
(6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Daily Averages of Indices
|
|
|
|
Month-End Averages of Indices
|
|||||||||||||||||||||
|
Six Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
|||||||||||||||||||||
|
|
|
2020
|
|
2019
|
|
% Change
|
|
|
|
|
|
2020
|
|
2019
|
|
% Change
|
|||||||||
S&P 500®
|
|
2,993
|
|
|
2,803
|
|
|
7
|
%
|
|
|
|
|
|
2,970
|
|
|
2,827
|
|
|
5
|
%
|
||||
MSCI EAFE®
|
|
1,774
|
|
|
1,861
|
|
|
(5
|
)
|
|
|
|
|
|
1,754
|
|
|
1,874
|
|
|
(6
|
)
|
||||
MSCI® Emerging Markets
|
|
980
|
|
|
1,039
|
|
|
(6
|
)
|
|
|
|
|
|
961
|
|
|
1,049
|
|
|
(8
|
)
|
|
|
TABLE 4: QUARTER-END DEBT INDICES(1)
|
||||||||
|
As of June 30,
|
|
|
|||||
|
2020
|
|
2019
|
|
% Change
|
|||
Barclays Capital U.S. Aggregate Bond Index®
|
2,362
|
|
|
2,172
|
|
|
9
|
%
|
Barclays Capital Global Aggregate Bond Index®
|
527
|
|
|
506
|
|
|
4
|
|
|
|
TABLE 5: INDUSTRY ASSET FLOWS
|
|||||||
|
Three Months Ended June 30,
|
||||||
(In billions)
|
2020
|
|
2019
|
||||
North America - ICI Market Data(1)(2)(3)
|
|
|
|
||||
Long-Term Funds(4)
|
$
|
(31.1
|
)
|
|
$
|
(38.2
|
)
|
Money Market
|
258.4
|
|
|
137.0
|
|
||
Exchange-Traded Fund
|
143.9
|
|
|
65.4
|
|
||
Total ICI Flows
|
$
|
371.2
|
|
|
$
|
164.2
|
|
|
|
|
|
||||
Europe - Broadridge Market Data(1)(5)(6)
|
|
|
|
||||
Long-Term Funds(4)
|
$
|
80.5
|
|
|
$
|
27.5
|
|
Money Market
|
92.4
|
|
|
1.6
|
|
||
Total Broadridge Flows
|
$
|
172.9
|
|
|
$
|
29.1
|
|
|
|
|
•
|
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: INVESTMENT SECURITIES NET PREMIUM AMORTIZATION
|
|||||||
|
Three Months Ended June 30,
|
||||||
(Dollars in millions)
|
2020
|
|
2019
|
||||
Unamortized premiums, net of discounts at period end
|
$
|
1,666
|
|
|
$
|
1,539
|
|
Net premium amortization(1)
|
109
|
|
|
113
|
|
||
Investment securities duration (years)(2)
|
2.4
|
|
|
2.6
|
|
|
|
TABLE 7: AVERAGE BALANCES AND INTEREST RATES - FULLY TAXABLE-EQUIVALENT BASIS(1)
|
|||||||||||||||||||||
|
Three Months Ended June 30,
|
||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||
(Dollars in millions; fully taxable-equivalent basis)
|
Average
Balance
|
|
Interest
Revenue/Expense
|
|
Rate
|
|
Average
Balance
|
|
Interest
Revenue/Expense
|
|
Rate
|
||||||||||
Interest-bearing deposits with banks
|
$
|
86,744
|
|
|
$
|
4
|
|
|
.01
|
%
|
|
$
|
48,074
|
|
|
$
|
109
|
|
|
.91
|
%
|
Securities purchased under resale agreements(2)
|
3,342
|
|
|
24
|
|
|
2.95
|
|
|
1,975
|
|
|
90
|
|
|
18.30
|
|
||||
Trading account assets
|
877
|
|
|
—
|
|
|
—
|
|
|
892
|
|
|
—
|
|
|
—
|
|
||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities available-for-sale
|
57,462
|
|
|
189
|
|
|
1.31
|
|
|
49,769
|
|
|
256
|
|
|
2.06
|
|
||||
Investment securities held-to-maturity
|
40,127
|
|
|
231
|
|
|
2.32
|
|
|
40,161
|
|
|
246
|
|
|
2.44
|
|
||||
Investment securities held-to-maturity purchased under money market liquidity facility
|
19,037
|
|
|
70
|
|
|
1.49
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total investment securities
|
116,626
|
|
|
490
|
|
|
1.69
|
|
|
89,930
|
|
|
502
|
|
|
2.23
|
|
||||
Loans
|
27,369
|
|
|
157
|
|
|
2.30
|
|
|
23,824
|
|
|
197
|
|
|
3.33
|
|
||||
Other interest-earning assets
|
9,831
|
|
|
4
|
|
|
.13
|
|
|
15,104
|
|
|
114
|
|
|
3.02
|
|
||||
Average total interest-earning assets
|
$
|
244,789
|
|
|
$
|
679
|
|
|
1.12
|
|
|
$
|
179,799
|
|
|
$
|
1,012
|
|
|
2.26
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
$
|
91,097
|
|
|
$
|
7
|
|
|
.03
|
%
|
|
$
|
66,502
|
|
|
$
|
150
|
|
|
.91
|
%
|
Non-U.S.(3)
|
66,977
|
|
|
(61
|
)
|
|
(.36
|
)
|
|
61,303
|
|
|
59
|
|
|
.39
|
|
||||
Total interest-bearing deposits(3)(4)
|
158,074
|
|
|
(54
|
)
|
|
(.13
|
)
|
|
127,805
|
|
|
209
|
|
|
.66
|
|
||||
Securities sold under repurchase agreements
|
3,394
|
|
|
1
|
|
|
.03
|
|
|
1,488
|
|
|
8
|
|
|
2.19
|
|
||||
Short-term borrowings under money market liquidity facility
|
19,036
|
|
|
58
|
|
|
1.23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other short-term borrowings
|
3,073
|
|
|
5
|
|
|
.66
|
|
|
2,041
|
|
|
6
|
|
|
1.22
|
|
||||
Long-term debt
|
15,574
|
|
|
95
|
|
|
2.45
|
|
|
11,228
|
|
|
107
|
|
|
3.78
|
|
||||
Other interest-bearing liabilities
|
3,461
|
|
|
10
|
|
|
1.07
|
|
|
3,979
|
|
|
64
|
|
|
6.47
|
|
||||
Average total interest-bearing liabilities
|
$
|
202,612
|
|
|
$
|
115
|
|
|
.23
|
|
|
$
|
146,541
|
|
|
$
|
394
|
|
|
1.08
|
|
Interest rate spread
|
|
|
|
|
.89
|
%
|
|
|
|
|
|
1.18
|
%
|
||||||||
Net interest income, fully taxable-equivalent basis
|
|
|
$
|
564
|
|
|
|
|
|
|
$
|
618
|
|
|
|
||||||
Net interest margin, fully taxable-equivalent basis
|
|
|
|
|
.93
|
%
|
|
|
|
|
|
1.38
|
%
|
||||||||
Tax-equivalent adjustment
|
|
|
(5
|
)
|
|
|
|
|
|
(5
|
)
|
|
|
||||||||
Net interest income, GAAP-basis
|
|
|
$
|
559
|
|
|
|
|
|
|
$
|
613
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||
(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
|
$
|
76,931
|
|
|
$
|
85
|
|
|
.22
|
%
|
|
$
|
48,462
|
|
|
$
|
228
|
|
|
.95
|
%
|
Securities purchased under resale agreements(2)
|
2,574
|
|
|
89
|
|
|
6.96
|
|
|
2,373
|
|
|
188
|
|
|
15.99
|
|
||||
Trading account assets
|
896
|
|
|
—
|
|
|
—
|
|
|
879
|
|
|
—
|
|
|
—
|
|
||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities available-for-sale
|
55,852
|
|
|
404
|
|
|
1.45
|
|
|
48,395
|
|
|
501
|
|
|
2.07
|
|
||||
Investment securities held-to-maturity
|
40,700
|
|
|
503
|
|
|
2.47
|
|
|
40,711
|
|
|
508
|
|
|
2.49
|
|
||||
Investment securities held to maturity purchased under money market liquidity facility
|
10,541
|
|
|
78
|
|
|
1.49
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total Investment securities
|
107,093
|
|
|
985
|
|
|
1.84
|
|
|
89,106
|
|
|
1,009
|
|
|
2.27
|
|
||||
Loans
|
27,919
|
|
|
342
|
|
|
2.46
|
|
|
23,442
|
|
|
396
|
|
|
3.41
|
|
||||
Other interest-earning assets
|
10,298
|
|
|
50
|
|
|
0.95
|
|
|
15,195
|
|
|
223
|
|
|
2.96
|
|
||||
Average total interest-earning assets
|
$
|
225,711
|
|
|
$
|
1,551
|
|
|
1.38
|
|
|
$
|
179,457
|
|
|
$
|
2,044
|
|
|
2.30
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
$
|
85,672
|
|
|
$
|
107
|
|
|
.25
|
%
|
|
$
|
65,522
|
|
|
$
|
282
|
|
|
.87
|
%
|
Non-U.S.(3)
|
65,658
|
|
|
(93
|
)
|
|
(.28
|
)
|
|
60,543
|
|
|
98
|
|
|
.33
|
|
||||
Total interest-bearing deposits(3)(4)
|
151,330
|
|
|
14
|
|
|
.02
|
|
|
126,065
|
|
|
380
|
|
|
.61
|
|
||||
Securities sold under repurchase agreements
|
2,584
|
|
|
3
|
|
|
.21
|
|
|
1,630
|
|
|
20
|
|
|
2.44
|
|
||||
Short-term borrowings under money market liquidity facility
|
10,612
|
|
|
64
|
|
|
1.22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other short-term borrowings
|
3,017
|
|
|
15
|
|
|
0.98
|
|
|
1,601
|
|
|
10
|
|
|
1.27
|
|
||||
Long-term debt
|
14,431
|
|
|
183
|
|
|
2.53
|
|
|
11,092
|
|
|
213
|
|
|
3.83
|
|
||||
Other interest-bearing liabilities
|
3,446
|
|
|
40
|
|
|
2.31
|
|
|
4,309
|
|
|
125
|
|
|
5.85
|
|
||||
Average total interest-bearing liabilities
|
$
|
185,420
|
|
|
$
|
319
|
|
|
.34
|
|
|
$
|
144,697
|
|
|
$
|
748
|
|
|
1.04
|
|
Interest rate spread
|
|
|
|
|
1.04
|
%
|
|
|
|
|
|
1.26
|
%
|
||||||||
Net interest income, fully taxable-equivalent basis
|
|
|
$
|
1,232
|
|
|
|
|
|
|
$
|
1,296
|
|
|
|
||||||
Net interest margin, fully taxable-equivalent basis
|
|
|
|
|
1.10
|
%
|
|
|
|
|
|
1.46
|
%
|
||||||||
Tax-equivalent adjustment
|
|
|
(9
|
)
|
|
|
|
|
|
(10
|
)
|
|
|
||||||||
Net interest income, GAAP basis
|
|
|
$
|
1,223
|
|
|
|
|
|
|
$
|
1,286
|
|
|
|
|
|
TABLE 8: EXPENSES
|
|
||||||||
|
Three Months Ended June 30,
|
|
% change
|
||||||
(Dollars in millions)
|
2020
|
|
2019
|
|
|||||
Compensation and employee benefits
|
$
|
1,051
|
|
|
$
|
1,084
|
|
|
(3)%
|
Information systems and communications
|
376
|
|
|
365
|
|
|
3
|
||
Transaction processing services
|
233
|
|
|
245
|
|
|
(5)
|
||
Occupancy
|
109
|
|
|
115
|
|
|
(5)
|
||
Acquisition costs
|
12
|
|
|
10
|
|
|
20
|
||
Restructuring charges, net
|
—
|
|
|
2
|
|
|
(100)
|
||
Amortization of other intangible assets
|
58
|
|
|
59
|
|
|
(2)
|
||
Other:
|
|
|
|
|
|
||||
Professional services
|
91
|
|
|
85
|
|
|
7
|
||
Other
|
152
|
|
|
189
|
|
|
(20)
|
||
Total other
|
243
|
|
|
274
|
|
|
(11)
|
||
Total expenses
|
$
|
2,082
|
|
|
$
|
2,154
|
|
|
(3)
|
Number of employees at quarter-end
|
39,068
|
|
|
39,483
|
|
|
(1)
|
||
|
|
|
|
||||||
|
Six Months Ended June 30,
|
|
% change
|
||||||
(Dollars in millions)
|
2020
|
|
2019
|
|
|||||
Compensation and employee benefits
|
$
|
2,259
|
|
|
$
|
2,313
|
|
|
(2)%
|
Information systems and communications
|
761
|
|
|
727
|
|
|
5
|
||
Transaction processing services
|
487
|
|
|
487
|
|
|
—
|
||
Occupancy
|
218
|
|
|
231
|
|
|
(6)
|
||
Acquisition costs
|
23
|
|
|
23
|
|
|
—
|
||
Restructuring charges, net
|
—
|
|
|
(2
|
)
|
|
(100)
|
||
Amortization of other intangible assets
|
116
|
|
|
119
|
|
|
(3)
|
||
Other:
|
|
|
|
|
|
||||
Professional services
|
172
|
|
|
165
|
|
|
4
|
||
Other
|
301
|
|
|
384
|
|
|
(22)
|
||
Total other
|
473
|
|
|
549
|
|
|
(14)
|
||
Total expenses
|
$
|
4,337
|
|
|
$
|
4,447
|
|
|
(2)
|
TABLE 9: RESTRUCTURING AND REPOSITIONING CHARGES
|
|||||||||||||||
(In millions)
|
Employee
Related Costs |
|
Real Estate
Actions |
|
Asset and Other Write-offs
|
|
Total
|
||||||||
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
|
|
Accrual balance at December 31, 2019
|
$
|
190
|
|
|
$
|
7
|
|
|
$
|
1
|
|
|
$
|
198
|
|
Payments and other adjustments
|
(33
|
)
|
|
(1
|
)
|
|
—
|
|
|
(34
|
)
|
||||
Accrual balance at March 31, 2020
|
$
|
157
|
|
|
$
|
6
|
|
|
$
|
1
|
|
|
$
|
164
|
|
Payments and other adjustments
|
(25
|
)
|
|
(1
|
)
|
|
—
|
|
|
(26
|
)
|
||||
Accrual balance at June 30, 2020
|
$
|
132
|
|
|
$
|
5
|
|
|
$
|
1
|
|
|
$
|
138
|
|
TABLE 10: INVESTMENT SERVICING LINE OF BUSINESS RESULTS
|
||||||||||
(Dollars in millions, except where otherwise noted)
|
Three Months Ended June 30,
|
|
% Change
|
|||||||
2020
|
|
2019
|
|
|||||||
Servicing fees
|
$
|
1,272
|
|
|
$
|
1,252
|
|
|
2
|
%
|
Foreign exchange trading services
|
312
|
|
|
240
|
|
|
30
|
|
||
Securities finance
|
88
|
|
|
122
|
|
|
(28
|
)
|
||
Software and processing fees
|
229
|
|
|
163
|
|
|
40
|
|
||
Total fee revenue
|
1,901
|
|
|
1,777
|
|
|
7
|
|
||
Net interest income
|
571
|
|
|
623
|
|
|
(8
|
)
|
||
Total revenue
|
2,472
|
|
|
2,400
|
|
|
3
|
|
||
Provision for credit losses
|
52
|
|
|
1
|
|
|
nm
|
|
||
Total expenses
|
1,717
|
|
|
1,765
|
|
|
(3
|
)
|
||
Income before income tax expense
|
$
|
703
|
|
|
$
|
634
|
|
|
11
|
|
Pre-tax margin
|
28
|
%
|
|
26
|
%
|
|
|
|||
|
|
|
|
|
|
|||||
(Dollars in millions, except where otherwise noted)
|
Six Months Ended June 30,
|
|
% Change
|
|||||||
2020
|
|
2019
|
|
|||||||
Servicing fees
|
$
|
2,559
|
|
|
$
|
2,503
|
|
|
2
|
%
|
Foreign exchange trading services
|
746
|
|
|
486
|
|
|
53
|
|
||
Securities finance
|
177
|
|
|
239
|
|
|
(26
|
)
|
||
Software and processing fees
|
366
|
|
|
343
|
|
|
7
|
|
||
Total fee revenue
|
3,848
|
|
|
3,571
|
|
|
8
|
|
||
Net interest income
|
1,234
|
|
|
1,302
|
|
|
(5
|
)
|
||
Total other income
|
2
|
|
|
(1
|
)
|
|
nm
|
|
||
Total revenue
|
5,084
|
|
|
4,872
|
|
|
4
|
|
||
Provision for credit losses
|
88
|
|
|
5
|
|
|
nm
|
|
||
Total expenses
|
3,576
|
|
|
3,629
|
|
|
(1
|
)
|
||
Income before income tax expense
|
$
|
1,420
|
|
|
$
|
1,238
|
|
|
15
|
|
Pre-tax margin
|
28
|
%
|
|
25
|
%
|
|
|
|
|
|
TABLE 11: ASSETS UNDER CUSTODY AND/OR ADMINISTRATION BY PRODUCT
|
|||||||||||
(In billions)
|
June 30, 2020
|
|
December 31, 2019
|
|
June 30, 2019
|
||||||
Collective funds
|
$
|
9,111
|
|
|
$
|
9,796
|
|
|
$
|
9,272
|
|
Mutual funds
|
9,155
|
|
|
9,221
|
|
|
8,645
|
|
|||
Insurance and other products
|
8,555
|
|
|
8,417
|
|
|
8,295
|
|
|||
Pension products
|
6,694
|
|
|
6,924
|
|
|
6,542
|
|
|||
Total
|
$
|
33,515
|
|
|
$
|
34,358
|
|
|
$
|
32,754
|
|
TABLE 12: ASSETS UNDER CUSTODY AND/OR ADMINISTRATION BY ASSET CLASS
|
|||||||||||
(In billions)
|
June 30, 2020
|
|
December 31, 2019
|
|
June 30, 2019
|
||||||
Equities
|
$
|
18,190
|
|
|
$
|
19,301
|
|
|
$
|
18,504
|
|
Fixed-income
|
11,342
|
|
|
10,766
|
|
|
10,089
|
|
|||
Short-term and other investments
|
3,983
|
|
|
4,291
|
|
|
4,161
|
|
|||
Total
|
$
|
33,515
|
|
|
$
|
34,358
|
|
|
$
|
32,754
|
|
TABLE 13: ASSETS UNDER CUSTODY AND/OR ADMINISTRATION BY GEOGRAPHY(1)
|
|||||||||||
(In billions)
|
June 30, 2020
|
|
December 31, 2019
|
|
June 30, 2019
|
||||||
Americas
|
$
|
24,375
|
|
|
$
|
25,018
|
|
|
$
|
23,989
|
|
Europe/Middle East/Africa
|
7,155
|
|
|
7,325
|
|
|
6,937
|
|
|||
Asia/Pacific
|
1,985
|
|
|
2,015
|
|
|
1,828
|
|
|||
Total
|
$
|
33,515
|
|
|
$
|
34,358
|
|
|
$
|
32,754
|
|
|
|
•
|
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)
|
June 30, 2020
|
|
December 31, 2019
|
|
June 30, 2019
|
||||||
Equity:
|
|
|
|
|
|
||||||
Active
|
$
|
75
|
|
|
$
|
88
|
|
|
$
|
86
|
|
Passive
|
1,770
|
|
|
1,903
|
|
|
1,757
|
|
|||
Total equity
|
1,845
|
|
|
1,991
|
|
|
1,843
|
|
|||
Fixed-income:
|
|
|
|
|
|
||||||
Active
|
91
|
|
|
89
|
|
|
93
|
|
|||
Passive
|
385
|
|
|
379
|
|
|
357
|
|
|||
Total fixed-income
|
476
|
|
|
468
|
|
|
450
|
|
|||
Cash(1)
|
390
|
|
|
324
|
|
|
319
|
|
|||
Multi-asset-class solutions:
|
|
|
|
|
|
||||||
Active
|
23
|
|
|
24
|
|
|
23
|
|
|||
Passive
|
135
|
|
|
133
|
|
|
132
|
|
|||
Total multi-asset-class solutions
|
158
|
|
|
157
|
|
|
155
|
|
|||
Alternative investments(2):
|
|
|
|
|
|
||||||
Active
|
19
|
|
|
21
|
|
|
21
|
|
|||
Passive
|
166
|
|
|
155
|
|
|
130
|
|
|||
Total alternative investments
|
185
|
|
|
176
|
|
|
151
|
|
|||
Total
|
$
|
3,054
|
|
|
$
|
3,116
|
|
|
$
|
2,918
|
|
|
|
TABLE 16: EXCHANGE-TRADED FUNDS BY ASSET CLASS(1)
|
|||||||||||
(In billions)
|
June 30, 2020
|
|
December 31, 2019
|
|
June 30, 2019
|
||||||
Alternative Investments(2)
|
$
|
77
|
|
|
$
|
56
|
|
|
$
|
48
|
|
Cash
|
16
|
|
|
9
|
|
|
9
|
|
|||
Equity
|
571
|
|
|
618
|
|
|
548
|
|
|||
Fixed-Income
|
90
|
|
|
85
|
|
|
77
|
|
|||
Total Exchange-Traded Funds
|
$
|
754
|
|
|
$
|
768
|
|
|
$
|
682
|
|
|
|
TABLE 17: GEOGRAPHIC MIX OF ASSETS UNDER MANAGEMENT(1)
|
|||||||||||
(In billions)
|
June 30, 2020
|
|
December 31, 2019
|
|
June 30, 2019
|
||||||
North America
|
$
|
2,104
|
|
|
$
|
2,115
|
|
|
$
|
1,965
|
|
Europe/Middle East/Africa
|
462
|
|
|
493
|
|
|
471
|
|
|||
Asia/Pacific
|
488
|
|
|
508
|
|
|
482
|
|
|||
Total
|
$
|
3,054
|
|
|
$
|
3,116
|
|
|
$
|
2,918
|
|
|
|
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, 2018
|
$
|
1,544
|
|
|
$
|
422
|
|
|
$
|
287
|
|
|
$
|
132
|
|
|
$
|
126
|
|
|
$
|
2,511
|
|
Long-term institutional flows, net(3)
|
26
|
|
|
(7
|
)
|
|
—
|
|
|
3
|
|
|
16
|
|
|
38
|
|
||||||
Exchange-traded fund flows, net
|
13
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
34
|
|
||||||
Cash fund flows, net
|
—
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
31
|
|
||||||
Total flows, net
|
39
|
|
|
8
|
|
|
31
|
|
|
3
|
|
|
22
|
|
|
103
|
|
||||||
Market appreciation (depreciation)
|
404
|
|
|
38
|
|
|
6
|
|
|
22
|
|
|
28
|
|
|
498
|
|
||||||
Foreign exchange impact
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||||
Total market/foreign exchange impact
|
408
|
|
|
38
|
|
|
6
|
|
|
22
|
|
|
28
|
|
|
502
|
|
||||||
Balance as of December 31, 2019
|
$
|
1,991
|
|
|
$
|
468
|
|
|
$
|
324
|
|
|
$
|
157
|
|
|
$
|
176
|
|
|
$
|
3,116
|
|
Long-term institutional flows, net(3)
|
2
|
|
|
(20
|
)
|
|
(1
|
)
|
|
2
|
|
|
(4
|
)
|
|
(21
|
)
|
||||||
Exchange-traded fund flows, net
|
(5
|
)
|
|
6
|
|
|
7
|
|
|
—
|
|
|
15
|
|
|
23
|
|
||||||
Cash fund flows, net
|
—
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
—
|
|
|
60
|
|
||||||
Total flows, net
|
(3
|
)
|
|
(14
|
)
|
|
66
|
|
|
2
|
|
|
11
|
|
|
62
|
|
||||||
Market appreciation (depreciation)
|
(136
|
)
|
|
23
|
|
|
1
|
|
|
(1
|
)
|
|
1
|
|
|
(112
|
)
|
||||||
Foreign exchange impact
|
(7
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
|
(12
|
)
|
||||||
Total market/foreign exchange impact
|
(143
|
)
|
|
22
|
|
|
—
|
|
|
(1
|
)
|
|
(2
|
)
|
|
(124
|
)
|
||||||
Balance as of June 30, 2020
|
$
|
1,845
|
|
|
$
|
476
|
|
|
$
|
390
|
|
|
$
|
158
|
|
|
$
|
185
|
|
|
$
|
3,054
|
|
|
|
|
|||||||
TABLE 20: AVERAGE STATEMENT OF CONDITION(1)
|
|||||||
|
Six Months Ended June 30,
|
||||||
(In millions)
|
2020
|
|
2019
|
||||
Assets:
|
|
|
|
||||
Interest-bearing deposits with banks
|
$
|
76,931
|
|
|
$
|
48,462
|
|
Securities purchased under resale agreements
|
2,574
|
|
|
2,373
|
|
||
Trading account assets
|
896
|
|
|
879
|
|
||
U.S. Treasury and federal agencies:
|
|
|
|
||||
Direct obligations
|
14,142
|
|
|
14,690
|
|
||
Mortgage-and asset-backed securities
|
44,374
|
|
|
40,568
|
|
||
State and political subdivisions
|
1,755
|
|
|
1,911
|
|
||
Other investments:
|
|
|
|
||||
Asset-backed securities
|
10,499
|
|
|
9,207
|
|
||
Collateralized mortgage-backed securities and obligations
|
712
|
|
|
949
|
|
||
Other debt investments and equity securities
|
25,070
|
|
|
21,781
|
|
||
Investment securities held to maturity purchased under money market liquidity facility
|
10,541
|
|
|
—
|
|
||
Total investment securities
|
107,093
|
|
|
89,106
|
|
||
Loans
|
27,919
|
|
|
23,442
|
|
||
Other interest-earning assets
|
10,298
|
|
|
15,195
|
|
||
Average total interest-earning assets
|
225,711
|
|
|
179,457
|
|
||
Cash and due from banks
|
3,668
|
|
|
3,547
|
|
||
Other non-interest-earning assets
|
38,556
|
|
|
37,538
|
|
||
Average total assets
|
$
|
267,935
|
|
|
$
|
220,542
|
|
Liabilities and shareholders’ equity:
|
|
|
|
||||
Interest-bearing deposits:
|
|
|
|
||||
U.S.
|
$
|
85,672
|
|
|
$
|
65,522
|
|
Non-U.S.
|
65,658
|
|
|
60,543
|
|
||
Total interest-bearing deposits(2)
|
151,330
|
|
|
126,065
|
|
||
Securities sold under repurchase agreements
|
2,584
|
|
|
1,630
|
|
||
Short-term borrowings under money market liquidity facility
|
10,612
|
|
|
—
|
|
||
Other short-term borrowings
|
3,017
|
|
|
1,601
|
|
||
Long-term debt
|
14,431
|
|
|
11,092
|
|
||
Other interest-bearing liabilities
|
3,446
|
|
|
4,309
|
|
||
Average total interest-bearing liabilities
|
185,420
|
|
|
144,697
|
|
||
Non-interest-bearing deposits(2)
|
37,284
|
|
|
29,895
|
|
||
Other non-interest-bearing liabilities
|
20,867
|
|
|
21,055
|
|
||
Preferred shareholders’ equity
|
2,666
|
|
|
3,690
|
|
||
Common shareholders’ equity
|
21,698
|
|
|
21,205
|
|
||
Average total liabilities and shareholders’ equity
|
$
|
267,935
|
|
|
$
|
220,542
|
|
|
|
TABLE 21: CARRYING VALUES OF INVESTMENT SECURITIES
|
|||||||
(In millions)
|
June 30, 2020
|
|
December 31, 2019
|
||||
Available-for-sale:
|
|
|
|
||||
U.S. Treasury and federal agencies:
|
|
|
|
||||
Direct obligations
|
$
|
5,804
|
|
|
$
|
3,487
|
|
Mortgage-backed securities
|
16,676
|
|
|
17,838
|
|
||
Total U.S. Treasury and federal agencies
|
22,480
|
|
|
21,325
|
|
||
Asset-backed securities:
|
|
|
|
||||
Student loans(1)
|
404
|
|
|
531
|
|
||
Credit cards
|
90
|
|
|
89
|
|
||
Collateralized loan obligations
|
1,919
|
|
|
1,820
|
|
||
Total asset-backed securities
|
2,413
|
|
|
2,440
|
|
||
Non-U.S. debt securities:
|
|
|
|
||||
Mortgage-backed securities
|
1,706
|
|
|
1,980
|
|
||
Asset-backed securities
|
1,891
|
|
|
2,179
|
|
||
Government securities
|
13,119
|
|
|
12,373
|
|
||
Other
|
10,062
|
|
|
8,658
|
|
||
Total non-U.S. debt securities
|
26,778
|
|
|
25,190
|
|
||
State and political subdivisions
|
1,723
|
|
|
1,783
|
|
||
Collateralized mortgage obligations
|
90
|
|
|
104
|
|
||
Other U.S. debt securities
|
2,747
|
|
|
2,973
|
|
||
Total available-for-sale
|
$
|
56,231
|
|
|
$
|
53,815
|
|
|
|
|
|
||||
Held-to-maturity(2):
|
|
|
|
||||
U.S. Treasury and federal agencies:
|
|
|
|
||||
Direct obligations
|
$
|
8,179
|
|
|
$
|
10,311
|
|
Mortgage-backed securities
|
28,204
|
|
|
26,297
|
|
||
Total U.S. Treasury and federal agencies
|
36,383
|
|
|
36,608
|
|
||
Asset-backed securities:
|
|
|
|
||||
Student loans(1)
|
4,148
|
|
|
3,783
|
|
||
Total asset-backed securities
|
4,148
|
|
|
3,783
|
|
||
Non-U.S. debt securities:
|
|
|
|
||||
Mortgage-backed securities
|
339
|
|
|
366
|
|
||
Government securities
|
393
|
|
|
328
|
|
||
Total non-U.S. debt securities
|
732
|
|
|
694
|
|
||
Collateralized mortgage obligations
|
585
|
|
|
697
|
|
||
Total
|
41,848
|
|
|
41,782
|
|
||
Held-to-maturity under money market mutual fund liquidity facility(3)
|
11,261
|
|
|
—
|
|
||
Total held-to-maturity
|
$
|
53,109
|
|
|
$
|
41,782
|
|
|
|
|
TABLE 22: INVESTMENT PORTFOLIO BY EXTERNAL CREDIT RATING (EXCLUDING SECURITIES PURCHASED UNDER THE MMLF PROGRAM)
|
|||||
|
June 30, 2020
|
|
December 31, 2019
|
||
AAA(1)
|
76
|
%
|
|
77
|
%
|
AA
|
14
|
|
|
13
|
|
A
|
5
|
|
|
5
|
|
BBB
|
5
|
|
|
5
|
|
Below BBB
|
—
|
|
|
—
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
TABLE 24: NON-U.S. DEBT SECURITIES(1)
|
|||||||
(In millions)
|
June 30, 2020
|
|
December 31, 2019
|
||||
Available-for-sale:
|
|
|
|
||||
Canada
|
$
|
2,966
|
|
|
$
|
2,611
|
|
European(2)
|
2,659
|
|
|
2,101
|
|
||
France
|
2,475
|
|
|
2,223
|
|
||
Australia
|
2,300
|
|
|
2,409
|
|
||
Germany
|
1,903
|
|
|
1,944
|
|
||
Spain
|
1,579
|
|
|
1,531
|
|
||
Belgium
|
1,474
|
|
|
977
|
|
||
Austria
|
1,422
|
|
|
1,398
|
|
||
United Kingdom
|
1,395
|
|
|
1,608
|
|
||
Japan
|
1,372
|
|
|
1,363
|
|
||
Netherlands
|
1,351
|
|
|
1,524
|
|
||
Ireland
|
1,123
|
|
|
1,235
|
|
||
Finland
|
1,039
|
|
|
846
|
|
||
Italy
|
998
|
|
|
1,113
|
|
||
Asian(2)
|
713
|
|
|
581
|
|
||
Hong Kong
|
427
|
|
|
617
|
|
||
Sweden
|
237
|
|
|
156
|
|
||
Luxembourg
|
76
|
|
|
124
|
|
||
Brazil
|
68
|
|
|
93
|
|
||
Norway
|
56
|
|
|
51
|
|
||
Other(3)
|
1,145
|
|
|
685
|
|
||
Total
|
$
|
26,778
|
|
|
$
|
25,190
|
|
Held-to-maturity:
|
|
|
|
||||
Singapore
|
$
|
281
|
|
|
$
|
214
|
|
United Kingdom
|
120
|
|
|
126
|
|
||
Germany
|
112
|
|
|
112
|
|
||
Australia
|
92
|
|
|
109
|
|
||
Spain
|
83
|
|
|
85
|
|
||
Other
|
44
|
|
|
48
|
|
||
Total
|
$
|
732
|
|
|
$
|
694
|
|
|
|
•
|
a pre-tax net unrealized gain of $259 million, composed of gross unrealized gains of $297 million and gross unrealized losses of $38 million, associated with non-U.S. AFS debt securities; and
|
•
|
a pre-tax net unrealized gain of $53 million, composed of gross unrealized gains of $60 million and gross unrealized losses of $7 million, associated with non-U.S. HTM debt securities.
|
TABLE 25: STATE AND MUNICIPAL OBLIGORS(1)
|
||||||||||||||
(Dollars in millions)
|
Total Municipal
Securities(2) |
|
Credit and
Liquidity
Facilities(3)
|
|
Total
|
|
% of Total Municipal
Exposure
|
|||||||
June 30, 2020
|
|
|
|
|
|
|
||||||||
State of Issuer:
|
|
|
|
|
|
|
|
|||||||
Texas
|
$
|
313
|
|
|
$
|
2,314
|
|
|
$
|
2,627
|
|
|
22
|
%
|
New York
|
519
|
|
|
1,773
|
|
|
2,292
|
|
|
19
|
|
|||
California
|
144
|
|
|
2,065
|
|
|
2,209
|
|
|
18
|
|
|||
Massachusetts
|
440
|
|
|
1,059
|
|
|
1,499
|
|
|
12
|
|
|||
Total
|
$
|
1,416
|
|
|
$
|
7,211
|
|
|
$
|
8,627
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
December 31, 2019
|
|
|
|
|
|
|
||||||||
State of Issuer:
|
|
|
|
|
|
|
|
|||||||
Texas
|
$
|
275
|
|
|
$
|
2,345
|
|
|
$
|
2,620
|
|
|
23
|
%
|
California
|
111
|
|
|
2,114
|
|
|
2,225
|
|
|
20
|
|
|||
New York
|
283
|
|
|
1,531
|
|
|
1,814
|
|
|
16
|
|
|||
Massachusetts
|
442
|
|
|
809
|
|
|
1,251
|
|
|
11
|
|
|||
Total
|
$
|
1,111
|
|
|
$
|
6,799
|
|
|
$
|
7,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 28: CROSS-BORDER OUTSTANDINGS(1)
|
|||||||||||
(In millions)
|
Investment Securities and Other Assets
|
|
Derivatives and Securities on Loan
|
|
Total Cross-Border Outstandings
|
||||||
June 30, 2020
|
|
|
|
|
|
|
|||||
Germany
|
$
|
20,814
|
|
|
$
|
426
|
|
|
$
|
21,240
|
|
United Kingdom
|
14,153
|
|
|
1,845
|
|
|
15,998
|
|
|||
Japan
|
11,337
|
|
|
594
|
|
|
11,931
|
|
|||
Australia
|
4,213
|
|
|
1,464
|
|
|
5,677
|
|
|||
Luxembourg
|
4,520
|
|
|
1,035
|
|
|
5,555
|
|
|||
Canada
|
3,222
|
|
|
1,830
|
|
|
5,052
|
|
|||
France
|
3,179
|
|
|
605
|
|
|
3,784
|
|
|||
December 31, 2019
|
|
|
|
|
|
|
|||||
Germany
|
$
|
20,968
|
|
|
$
|
217
|
|
|
$
|
21,185
|
|
United Kingdom
|
13,764
|
|
|
1,468
|
|
|
15,232
|
|
|||
Japan
|
11,121
|
|
|
555
|
|
|
11,676
|
|
|||
Luxembourg
|
3,399
|
|
|
668
|
|
|
4,067
|
|
|||
Canada
|
2,955
|
|
|
783
|
|
|
3,738
|
|
|||
Australia
|
3,100
|
|
|
597
|
|
|
3,697
|
|
|||
France
|
2,813
|
|
|
240
|
|
|
3,053
|
|
|||
Ireland
|
1,988
|
|
|
641
|
|
|
2,629
|
|
|||
Switzerland
|
1,724
|
|
|
589
|
|
|
2,313
|
|
|
|
|
•
|
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 29: TEN-DAY VALUE-AT-RISK ASSOCIATED WITH TRADING ACTIVITIES FOR COVERED POSITIONS
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Three Months Ended
|
|
As of June 30, 2020
|
|
As of March 31, 2020
|
|
As of June 30, 2019
|
||||||||||||||||||||||||||||||||||||||||
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
(In thousands)
|
Avg.
|
|
Max.
|
|
Min.
|
|
Avg.
|
|
Max.
|
|
Min.
|
|
Avg.
|
|
Max.
|
|
Min.
|
|
VaR
|
|
VaR
|
|
VaR
|
||||||||||||||||||||||||
Global Markets
|
$
|
10,072
|
|
|
$
|
19,152
|
|
|
$
|
5,618
|
|
|
$
|
9,533
|
|
|
$
|
14,575
|
|
|
$
|
5,220
|
|
|
$
|
10,812
|
|
|
$
|
19,594
|
|
|
$
|
4,742
|
|
|
$
|
8,534
|
|
|
$
|
6,496
|
|
|
$
|
10,278
|
|
Global Treasury
|
3,856
|
|
|
8,043
|
|
|
423
|
|
|
803
|
|
|
4,018
|
|
|
112
|
|
|
1,066
|
|
|
3,988
|
|
|
167
|
|
|
4,040
|
|
|
3,335
|
|
|
1,155
|
|
||||||||||||
Diversification
|
(2,673
|
)
|
|
(5,294
|
)
|
|
(307
|
)
|
|
(808
|
)
|
|
(4,048
|
)
|
|
(121
|
)
|
|
(941
|
)
|
|
(3,975
|
)
|
|
1,360
|
|
|
(2,293
|
)
|
|
(3,341
|
)
|
|
(1,583
|
)
|
||||||||||||
Total VaR
|
$
|
11,255
|
|
|
$
|
21,901
|
|
|
$
|
5,734
|
|
|
$
|
9,528
|
|
|
$
|
14,545
|
|
|
$
|
5,211
|
|
|
$
|
10,937
|
|
|
$
|
19,607
|
|
|
$
|
6,269
|
|
|
$
|
10,281
|
|
|
$
|
6,490
|
|
|
$
|
9,850
|
|
TABLE 30: TEN-DAY STRESSED VALUE-AT-RISK ASSOCIATED WITH TRADING ACTIVITIES FOR COVERED POSITIONS
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Three Months Ended
|
|
As of June 30, 2020
|
|
As of March 31, 2020
|
|
As of June 30, 2019
|
||||||||||||||||||||||||||||||||||||||||
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
(In thousands)
|
Avg.
|
|
Max.
|
|
Min.
|
|
Avg.
|
|
Max.
|
|
Min.
|
|
Avg.
|
|
Max.
|
|
Min.
|
|
Stressed VaR
|
|
Stressed VaR
|
|
Stressed VaR
|
||||||||||||||||||||||||
Global Markets
|
$
|
29,533
|
|
|
$
|
59,530
|
|
|
$
|
17,545
|
|
|
$
|
39,994
|
|
|
$
|
61,261
|
|
|
$
|
23,402
|
|
|
$
|
33,306
|
|
|
$
|
50,947
|
|
|
$
|
15,312
|
|
|
$
|
30,684
|
|
|
$
|
38,401
|
|
|
$
|
47,670
|
|
Global Treasury
|
8,987
|
|
|
16,010
|
|
|
1,713
|
|
|
3,825
|
|
|
14,586
|
|
|
587
|
|
|
5,137
|
|
|
10,840
|
|
|
1,187
|
|
|
9,755
|
|
|
10,905
|
|
|
5,813
|
|
||||||||||||
Diversification
|
(7,766
|
)
|
|
(12,256
|
)
|
|
1,951
|
|
|
(4,307
|
)
|
|
(15,622
|
)
|
|
(615
|
)
|
|
(5,476
|
)
|
|
(11,508
|
)
|
|
(834
|
)
|
|
(12,779
|
)
|
|
(12,045
|
)
|
|
(8,713
|
)
|
||||||||||||
Total VaR
|
$
|
30,754
|
|
|
$
|
63,284
|
|
|
$
|
21,209
|
|
|
$
|
39,512
|
|
|
$
|
60,225
|
|
|
$
|
23,374
|
|
|
$
|
32,967
|
|
|
$
|
50,279
|
|
|
$
|
15,665
|
|
|
$
|
27,660
|
|
|
$
|
37,261
|
|
|
$
|
44,770
|
|
TABLE 31: TEN-DAY VALUE-AT-RISK ASSOCIATED WITH TRADING ACTIVITIES BY RISK FACTOR FOR COVERED POSITIONS(1)
|
|||||||||||||||||||||||||||||||||||
|
As of June 30, 2020
|
|
As of March 31, 2020
|
|
As of June 30, 2019
|
||||||||||||||||||||||||||||||
(In thousands)
|
Foreign Exchange Risk
|
|
Interest Rate Risk
|
|
Volatility Risk
|
|
Foreign Exchange Risk
|
|
Interest Rate Risk
|
|
Volatility Risk
|
|
Foreign Exchange Risk
|
|
Interest Rate Risk
|
|
Volatility Risk
|
||||||||||||||||||
By component:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Global Markets
|
$
|
6,243
|
|
|
$
|
8,706
|
|
|
$
|
239
|
|
|
$
|
5,599
|
|
|
$
|
7,017
|
|
|
$
|
162
|
|
|
$
|
3,506
|
|
|
$
|
9,464
|
|
|
$
|
436
|
|
Global Treasury
|
16
|
|
|
4,244
|
|
|
—
|
|
|
22
|
|
|
3,609
|
|
|
—
|
|
|
39
|
|
|
1,141
|
|
|
—
|
|
|||||||||
Diversification
|
(15
|
)
|
|
(2,249
|
)
|
|
—
|
|
|
(28
|
)
|
|
(3,583
|
)
|
|
—
|
|
|
(64
|
)
|
|
(1,612
|
)
|
|
—
|
|
|||||||||
Total VaR
|
$
|
6,244
|
|
|
$
|
10,701
|
|
|
$
|
239
|
|
|
$
|
5,593
|
|
|
$
|
7,043
|
|
|
$
|
162
|
|
|
$
|
3,481
|
|
|
$
|
8,993
|
|
|
$
|
436
|
|
TABLE 32: TEN-DAY STRESSED VALUE-AT-RISK ASSOCIATED WITH TRADING ACTIVITIES BY RISK FACTOR FOR COVERED POSITIONS(1)
|
|||||||||||||||||||||||||||||||||||
|
As of June 30, 2020
|
|
As of March 31, 2020
|
|
As of June 30, 2019
|
||||||||||||||||||||||||||||||
(In thousands)
|
Foreign Exchange Risk
|
|
Interest Rate Risk
|
|
Volatility Risk
|
|
Foreign Exchange Risk
|
|
Interest Rate Risk
|
|
Volatility Risk
|
|
Foreign Exchange Risk
|
|
Interest Rate Risk
|
|
Volatility Risk
|
||||||||||||||||||
By component:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Global Markets
|
$
|
16,712
|
|
|
$
|
32,549
|
|
|
$
|
285
|
|
|
$
|
11,695
|
|
|
$
|
51,732
|
|
|
$
|
172
|
|
|
$
|
7,291
|
|
|
$
|
48,433
|
|
|
$
|
819
|
|
Global Treasury
|
34
|
|
|
9,484
|
|
|
—
|
|
|
40
|
|
|
10,242
|
|
|
—
|
|
|
85
|
|
|
5,765
|
|
|
—
|
|
|||||||||
Diversification
|
(56
|
)
|
|
(9,946
|
)
|
|
—
|
|
|
(61
|
)
|
|
(11,848
|
)
|
|
—
|
|
|
(151
|
)
|
|
(6,579
|
)
|
|
—
|
|
|||||||||
Total VaR
|
$
|
16,690
|
|
|
$
|
32,087
|
|
|
$
|
285
|
|
|
$
|
11,674
|
|
|
$
|
50,126
|
|
|
$
|
172
|
|
|
$
|
7,225
|
|
|
$
|
47,619
|
|
|
$
|
819
|
|
|
|
|
TABLE 33: KEY INTEREST RATES FOR BASELINE FORECASTS
|
|||||||||||
|
June 30, 2020
|
|
June 30, 2019
|
||||||||
|
Fed Funds Target
|
|
10-Year Treasury
|
|
Fed Funds Target
|
|
10-Year Treasury
|
||||
Spot rates
|
0.25
|
%
|
|
0.66
|
%
|
|
2.50
|
%
|
|
2.01
|
%
|
12-month forward rates
|
0.25
|
|
|
0.92
|
|
|
1.75
|
|
|
2.18
|
|
TABLE 35: ECONOMIC VALUE OF EQUITY SENSITIVITY
|
|||||||
|
As of June 30,
|
||||||
(In millions)
|
2020
|
|
2019
|
||||
Rate change:
|
Benefit (Exposure)
|
||||||
+200 bps shock
|
$
|
(1,004
|
)
|
|
$
|
(1,416
|
)
|
–200 bps shock
|
960
|
|
|
429
|
|
TABLE 36: REGULATORY CAPITAL STRUCTURE AND RELATED REGULATORY CAPITAL RATIOS
|
|||||||||||||||||||||||||||||||||||
|
State Street Corporation
|
|
State Street Bank
|
||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Basel III Advanced Approaches June 30, 2020
|
|
Basel III Standardized Approach June 30, 2020
|
|
Basel III Advanced Approaches December 31, 2019
|
|
Basel III Standardized Approach December 31, 2019
|
|
Basel III Advanced Approaches June 30, 2020
|
|
Basel III Standardized Approach June 30, 2020
|
|
Basel III Advanced Approaches December 31, 2019
|
|
Basel III Standardized Approach December 31, 2019
|
||||||||||||||||||||
Common shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Common stock and related surplus
|
$
|
10,683
|
|
|
$
|
10,683
|
|
|
$
|
10,636
|
|
|
$
|
10,636
|
|
|
$
|
12,893
|
|
|
$
|
12,893
|
|
|
$
|
12,893
|
|
|
$
|
12,893
|
|
||||
Retained earnings
|
22,794
|
|
|
22,794
|
|
|
21,918
|
|
|
21,918
|
|
|
13,103
|
|
|
13,103
|
|
|
13,218
|
|
|
13,218
|
|
||||||||||||
Accumulated other comprehensive income (loss)
|
(430
|
)
|
|
(430
|
)
|
|
(870
|
)
|
|
(870
|
)
|
|
(174
|
)
|
|
(174
|
)
|
|
(654
|
)
|
|
(654
|
)
|
||||||||||||
Treasury stock, at cost
|
(10,645
|
)
|
|
(10,645
|
)
|
|
(10,209
|
)
|
|
(10,209
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||
Total
|
22,402
|
|
|
22,402
|
|
|
21,475
|
|
|
21,475
|
|
|
25,822
|
|
|
25,822
|
|
|
25,457
|
|
|
25,457
|
|
||||||||||||
Regulatory capital adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Goodwill and other intangible assets, net of associated deferred tax liabilities
|
(8,973
|
)
|
|
(8,973
|
)
|
|
(9,112
|
)
|
|
(9,112
|
)
|
|
(8,705
|
)
|
|
(8,705
|
)
|
|
(8,839
|
)
|
|
(8,839
|
)
|
||||||||||||
Other adjustments(1)
|
(261
|
)
|
|
(261
|
)
|
|
(150
|
)
|
|
(150
|
)
|
|
(119
|
)
|
|
(119
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||
Common equity tier 1 capital
|
13,168
|
|
|
13,168
|
|
|
12,213
|
|
|
12,213
|
|
|
16,998
|
|
|
16,998
|
|
|
16,617
|
|
|
16,617
|
|
||||||||||||
Preferred stock
|
2,471
|
|
|
2,471
|
|
|
2,962
|
|
|
2,962
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||
Tier 1 capital
|
15,639
|
|
|
15,639
|
|
|
15,175
|
|
|
15,175
|
|
|
16,998
|
|
|
16,998
|
|
|
16,617
|
|
|
16,617
|
|
||||||||||||
Qualifying subordinated long-term debt
|
964
|
|
|
964
|
|
|
1,095
|
|
|
1,095
|
|
|
969
|
|
|
969
|
|
|
1,099
|
|
|
1,099
|
|
||||||||||||
Allowance for credit losses
|
47
|
|
|
163
|
|
|
5
|
|
|
90
|
|
|
55
|
|
|
163
|
|
|
3
|
|
|
90
|
|
||||||||||||
Total capital
|
$
|
16,650
|
|
|
$
|
16,766
|
|
|
$
|
16,275
|
|
|
$
|
16,360
|
|
|
$
|
18,022
|
|
|
$
|
18,130
|
|
|
$
|
17,719
|
|
|
$
|
17,806
|
|
||||
Risk-weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Credit risk(2)
|
$
|
57,975
|
|
|
$
|
105,276
|
|
|
$
|
54,763
|
|
|
$
|
102,367
|
|
|
$
|
54,016
|
|
|
$
|
101,462
|
|
|
$
|
51,610
|
|
|
$
|
98,979
|
|
||||
Operational risk(3)
|
44,225
|
|
|
NA
|
|
|
47,963
|
|
|
NA
|
|
|
43,738
|
|
|
NA
|
|
|
44,138
|
|
|
NA
|
|
||||||||||||
Market risk
|
1,563
|
|
|
1,563
|
|
|
1,638
|
|
|
1,638
|
|
|
1,563
|
|
|
1,563
|
|
|
1,638
|
|
|
1,638
|
|
||||||||||||
Total risk-weighted assets
|
$
|
103,763
|
|
|
$
|
106,839
|
|
|
$
|
104,364
|
|
|
$
|
104,005
|
|
|
$
|
99,317
|
|
|
$
|
103,025
|
|
|
$
|
97,386
|
|
|
$
|
100,617
|
|
||||
Adjusted quarterly average assets
|
$
|
256,418
|
|
|
$
|
256,418
|
|
|
$
|
219,624
|
|
|
$
|
219,624
|
|
|
$
|
252,725
|
|
|
$
|
252,725
|
|
|
$
|
216,397
|
|
|
$
|
216,397
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Capital Ratios:
|
2020 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge
|
2019 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Common equity tier 1 capital
|
8.0
|
%
|
8.5
|
%
|
12.7
|
%
|
|
12.3
|
%
|
|
11.7
|
%
|
|
11.7
|
%
|
|
17.1
|
%
|
|
16.5
|
%
|
|
17.1
|
%
|
|
16.5
|
%
|
||||||||
Tier 1 capital
|
9.5
|
|
10.0
|
|
15.1
|
|
|
14.6
|
|
|
14.5
|
|
|
14.6
|
|
|
17.1
|
|
|
16.5
|
|
|
17.1
|
|
|
16.5
|
|
||||||||
Total capital
|
11.5
|
|
12.0
|
|
16.0
|
|
|
15.7
|
|
|
15.6
|
|
|
15.7
|
|
|
18.1
|
|
|
17.6
|
|
|
18.2
|
|
|
17.7
|
|
|
|
|
|
TABLE 37: CAPITAL ROLL-FORWARD
|
|||||||||||||||
(In millions)
|
Basel III Advanced Approaches June 30, 2020
|
|
Basel III Standardized Approach June 30, 2020
|
|
Basel III
Advanced Approaches
December 31, 2019
|
|
Basel III Standardized Approach
December 31, 2019
|
||||||||
Common equity tier 1 capital:
|
|
|
|
|
|
|
|
||||||||
Common equity tier 1 capital balance, beginning of period
|
$
|
12,213
|
|
|
$
|
12,213
|
|
|
$
|
11,580
|
|
|
$
|
11,580
|
|
Net income
|
1,328
|
|
|
1,328
|
|
|
2,242
|
|
|
2,242
|
|
||||
Changes in treasury stock, at cost
|
(436
|
)
|
|
(436
|
)
|
|
(1,494
|
)
|
|
(1,494
|
)
|
||||
Dividends declared
|
(443
|
)
|
|
(443
|
)
|
|
(939
|
)
|
|
(939
|
)
|
||||
Goodwill and other intangible assets, net of associated deferred tax liabilities
|
139
|
|
|
139
|
|
|
238
|
|
|
238
|
|
||||
Effect of certain items in accumulated other comprehensive income (loss)
|
440
|
|
|
440
|
|
|
462
|
|
|
462
|
|
||||
Other adjustments
|
(73
|
)
|
|
(73
|
)
|
|
124
|
|
|
124
|
|
||||
Changes in common equity tier 1 capital
|
955
|
|
|
955
|
|
|
633
|
|
|
633
|
|
||||
Common equity tier 1 capital balance, end of period
|
13,168
|
|
|
13,168
|
|
|
12,213
|
|
|
12,213
|
|
||||
Additional tier 1 capital:
|
|
|
|
|
|
|
|
||||||||
Tier 1 capital balance, beginning of period
|
15,175
|
|
|
15,175
|
|
|
15,270
|
|
|
15,270
|
|
||||
Change in common equity tier 1 capital
|
955
|
|
|
955
|
|
|
633
|
|
|
633
|
|
||||
Net issuance (redemption) of preferred stock
|
(491
|
)
|
|
(491
|
)
|
|
(728
|
)
|
|
(728
|
)
|
||||
Other adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Changes in tier 1 capital
|
464
|
|
|
464
|
|
|
(95
|
)
|
|
(95
|
)
|
||||
Tier 1 capital balance, end of period
|
15,639
|
|
|
15,639
|
|
|
15,175
|
|
|
15,175
|
|
||||
Tier 2 capital:
|
|
|
|
|
|
|
|
||||||||
Tier 2 capital balance, beginning of period
|
1,100
|
|
|
1,185
|
|
|
792
|
|
|
861
|
|
||||
Net issuance and changes in long-term debt qualifying as tier 2
|
(131
|
)
|
|
(131
|
)
|
|
317
|
|
|
317
|
|
||||
Changes in allowance for credit losses(1)
|
42
|
|
|
73
|
|
|
(9
|
)
|
|
7
|
|
||||
Change in other adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Changes in tier 2 capital
|
(89
|
)
|
|
(58
|
)
|
|
308
|
|
|
324
|
|
||||
Tier 2 capital balance, end of period
|
1,011
|
|
|
1,127
|
|
|
1,100
|
|
|
1,185
|
|
||||
Total capital:
|
|
|
|
|
|
|
|
||||||||
Total capital balance, beginning of period
|
16,275
|
|
|
16,360
|
|
|
16,062
|
|
|
16,131
|
|
||||
Changes in tier 1 capital
|
464
|
|
|
464
|
|
|
(95
|
)
|
|
(95
|
)
|
||||
Changes in tier 2 capital
|
(89
|
)
|
|
(58
|
)
|
|
308
|
|
|
324
|
|
||||
Total capital balance, end of period
|
$
|
16,650
|
|
|
$
|
16,766
|
|
|
$
|
16,275
|
|
|
$
|
16,360
|
|
|
|
|
TABLE 38: ADVANCED & STANDARDIZED APPROACHES RISK-WEIGHTED ASSETS ROLL-FORWARD
|
|||||||||||||||
(In millions)
|
Basel III Advanced Approaches June 30, 2020
|
|
Basel III
Advanced Approaches December 31, 2019
|
|
Basel III Standardized Approach June 30, 2020
|
|
Basel III Standardized Approach December 31, 2019
|
||||||||
Total risk-weighted assets, beginning of period(1)
|
$
|
104,364
|
|
|
$
|
95,315
|
|
|
$
|
104,005
|
|
|
$
|
98,820
|
|
Changes in credit risk-weighted assets:
|
|
|
|
|
|
|
|
||||||||
Net increase (decrease) in investment securities-wholesale
|
53
|
|
|
3,470
|
|
|
(134
|
)
|
|
3,882
|
|
||||
Net increase (decrease) in loans
|
1,992
|
|
|
2,586
|
|
|
2,377
|
|
|
809
|
|
||||
Net increase (decrease) in securitization exposures
|
(156
|
)
|
|
(140
|
)
|
|
(156
|
)
|
|
(140
|
)
|
||||
Net increase (decrease) in repo-style transaction exposures
|
670
|
|
|
(45
|
)
|
|
(1,007
|
)
|
|
365
|
|
||||
Net increase (decrease) in Over-the-counter derivatives exposures
|
(408
|
)
|
|
26
|
|
|
(45
|
)
|
|
(1,124
|
)
|
||||
Net increase (decrease) in all other(2)(3)
|
1,061
|
|
|
1,128
|
|
|
1,874
|
|
|
1,272
|
|
||||
Net increase (decrease) in credit risk-weighted assets
|
3,212
|
|
|
7,025
|
|
|
2,909
|
|
|
5,064
|
|
||||
Net increase (decrease) in market risk-weighted assets
|
(75
|
)
|
|
121
|
|
|
(75
|
)
|
|
121
|
|
||||
Net increase (decrease) in operational risk-weighted assets
|
(3,738
|
)
|
|
1,903
|
|
|
N/A
|
|
|
N/A
|
|
||||
Total risk-weighted assets, end of period
|
$
|
103,763
|
|
|
$
|
104,364
|
|
|
$
|
106,839
|
|
|
$
|
104,005
|
|
|
|
|
|
|
|
TABLE 40: TOTAL LOSS-ABSORBING CAPACITY
|
|||||||||||||
|
As of June 30, 2020
|
||||||||||||
(Dollars in millions)
|
Actual
|
|
Requirement
|
||||||||||
Total loss-absorbing capacity (eligible Tier 1 regulatory capacity and long term debt):
|
|
|
|
|
|
|
|
||||||
Risk-weighted assets
|
27,894
|
|
|
26.1
|
|
|
$
|
22,970
|
|
|
21.5
|
|
|
Supplementary leverage exposure
|
27,894
|
|
|
14.8
|
|
|
17,958
|
|
|
9.5
|
|
||
Long term debt:
|
|
|
|
|
|
|
|
||||||
Risk-weighted assets
|
12,255
|
|
|
11.5
|
|
|
7,479
|
|
|
7.0
|
|
||
Supplementary leverage exposure
|
12,255
|
|
|
6.5
|
|
|
$
|
8,506
|
|
|
4.5
|
|
TABLE 41: PREFERRED STOCK ISSUED AND OUTSTANDING
|
|||||||||||||||||||||||||||
Preferred Stock(2):
|
Issuance Date
|
|
Depositary Shares Issued
|
|
Amount outstanding (in millions)
|
|
Ownership Interest Per Depositary Share
|
|
Liquidation Preference Per Share
|
|
Liquidation Preference Per Depositary Share
|
|
Per Annum Dividend Rate
|
|
Dividend Payment Frequency
|
|
Carrying Value as of June 30, 2020
(In millions) |
|
Redemption Date(1)
|
||||||||
Series D
|
February 2014
|
|
30,000,000
|
|
$
|
750
|
|
|
1/4,000th
|
|
$
|
100,000
|
|
|
$
|
25
|
|
|
5.90% to but excluding March 15, 2024, then a floating rate equal to the three-month LIBOR plus 3.108%
|
|
Quarterly: March, June, September and December
|
|
$
|
742
|
|
|
March 15, 2024
|
Series F
|
May 2015
|
|
750,000
|
|
750
|
|
|
1/100th
|
|
100,000
|
|
|
1,000
|
|
|
5.25% to but excluding September 15, 2020, then a floating rate equal to the three-month LIBOR plus 3.597%
|
|
Semi-annually: March and September
|
|
742
|
|
|
September 15, 2020
|
||||
Series G
|
April 2016
|
|
20,000,000
|
|
500
|
|
|
1/4,000th
|
|
100,000
|
|
|
25
|
|
|
5.35% to but excluding March 15, 2026, then a floating rate equal to the three-month LIBOR plus 3.709%
|
|
Quarterly: March, June, September and December
|
|
493
|
|
|
March 15, 2026
|
||||
Series H
|
September 2018
|
|
500,000
|
|
500
|
|
|
1/100th
|
|
100,000
|
|
|
1,000
|
|
|
5.625% to but excluding December 15, 2023, then a floating rate equal to the three-month LIBOR plus 2.539%
|
|
Semi-annually: June and December
|
|
494
|
|
|
December 15, 2023
|
|
|
|
|
TABLE 42: PREFERRED STOCK DIVIDENDS
|
|||||||||||||||||||||||
|
Three Months Ended June 30,
|
||||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||||
(Dollars in millions, except per share amounts)
|
Dividends Declared per Share
|
|
Dividends Declared per Depositary Share
|
|
Total
(In millions)(1)
|
|
Dividends Declared per Share
|
|
Dividends Declared per Depositary Share
|
|
Total
(In millions)
|
||||||||||||
Preferred Stock:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Series C(1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,313
|
|
|
$
|
0.33
|
|
|
$
|
7
|
|
Series D
|
1,475
|
|
|
0.37
|
|
|
11
|
|
|
1,475
|
|
|
0.37
|
|
|
11
|
|
||||||
Series E(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
1,500
|
|
|
0.38
|
|
|
11
|
|
||||||
Series F
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Series G
|
1,338
|
|
|
0.33
|
|
|
7
|
|
|
1,338
|
|
|
0.33
|
|
|
7
|
|
||||||
Series H
|
2,813
|
|
|
28.13
|
|
|
14
|
|
|
2,813
|
|
|
28.13
|
|
|
14
|
|
||||||
Total
|
|
|
|
|
$
|
32
|
|
|
|
|
|
|
$
|
50
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||||
(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(1)
|
$
|
1,313
|
|
|
$
|
0.33
|
|
|
$
|
6
|
|
|
$
|
2,626
|
|
|
$
|
0.66
|
|
|
$
|
13
|
|
Series D
|
2,950
|
|
|
0.74
|
|
|
22
|
|
|
2,950
|
|
|
0.74
|
|
|
22
|
|
||||||
Series E(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
3,000
|
|
|
0.76
|
|
|
22
|
|
||||||
Series F
|
2,625
|
|
|
26.25
|
|
|
20
|
|
|
2,625
|
|
|
26.25
|
|
|
20
|
|
||||||
Series G
|
2,676
|
|
|
0.66
|
|
|
14
|
|
|
2,676
|
|
|
0.66
|
|
|
14
|
|
||||||
Series H
|
2,813
|
|
|
28.13
|
|
|
14
|
|
|
2,813
|
|
|
28.13
|
|
|
14
|
|
||||||
Total
|
|
|
|
|
$
|
76
|
|
|
|
|
|
|
$
|
105
|
|
|
|
|
|
TABLE 43: SHARES REPURCHASED
|
|||||||||||||||||||||
|
Three Months Ended June 30, 2020
|
|
Six Months Ended June 30, 2020
|
||||||||||||||||||
|
Shares Acquired
(In millions) |
|
Average Cost per Share
|
|
Total Acquired
(In millions) |
|
Shares Acquired
(In millions) |
|
Average Cost per Share
|
|
Total Acquired
(In millions) |
||||||||||
2019 Program
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
6.5
|
|
|
$
|
77.35
|
|
|
$
|
500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended June, 2019
|
|
Six Months Ended June 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
|
4.6
|
|
|
$
|
65.25
|
|
|
$
|
300
|
|
|
8.8
|
|
|
$
|
67.97
|
|
|
$
|
600
|
|
TABLE 44: COMMON STOCK DIVIDENDS
|
|||||||||||||||
|
Three Months Ended June 30,
|
||||||||||||||
|
2020
|
|
2019
|
||||||||||||
|
Dividends Declared per Share
|
|
Total (In millions)
|
|
Dividends Declared per Share
|
|
Total (In millions)
|
||||||||
Common Stock
|
$
|
0.52
|
|
|
$
|
183
|
|
|
$
|
0.47
|
|
|
$
|
175
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended June 30,
|
||||||||||||||
|
2020
|
|
2019
|
||||||||||||
|
Dividends Declared per Share
|
|
Total (In millions)
|
|
Dividends Declared per Share
|
|
Total (In millions)
|
||||||||
Common Stock
|
$
|
1.04
|
|
|
$
|
366
|
|
|
$
|
0.94
|
|
|
$
|
352
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|||||||||||||
(Dollars in millions, except per share amounts)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|||||||||
Fee revenue:
|
|
|
|
|
|
|
|
|||||||||
Servicing fees
|
$
|
1,272
|
|
|
$
|
1,252
|
|
|
$
|
2,559
|
|
|
$
|
2,503
|
|
|
Management fees
|
425
|
|
|
441
|
|
|
874
|
|
|
861
|
|
|||||
Foreign exchange trading services
|
344
|
|
|
273
|
|
|
803
|
|
|
553
|
|
|||||
Securities finance
|
92
|
|
|
126
|
|
|
184
|
|
|
244
|
|
|||||
Software and processing fees
|
245
|
|
|
168
|
|
|
357
|
|
|
359
|
|
|||||
Total fee revenue
|
2,378
|
|
|
2,260
|
|
|
4,777
|
|
|
4,520
|
|
|||||
Net interest income:
|
|
|
|
|
|
|
|
|||||||||
Interest income
|
674
|
|
|
1,007
|
|
|
1,542
|
|
|
2,034
|
|
|||||
Interest expense
|
115
|
|
|
394
|
|
|
319
|
|
|
748
|
|
|||||
Net interest income
|
559
|
|
|
613
|
|
|
1,223
|
|
|
1,286
|
|
|||||
Other income:
|
|
|
|
|
|
|
|
|||||||||
Gains from sales of available-for-sale securities, net
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|||||
Other income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Total other income
|
—
|
|
|
—
|
|
|
2
|
|
—
|
|
(1
|
)
|
||||
Total revenue
|
2,937
|
|
|
2,873
|
|
|
6,002
|
|
|
5,805
|
|
|||||
Provision for credit losses
|
52
|
|
|
1
|
|
|
88
|
|
|
5
|
|
|||||
Expenses:
|
|
|
|
|
|
|
|
|||||||||
Compensation and employee benefits
|
1,051
|
|
|
1,084
|
|
|
2,259
|
|
|
2,313
|
|
|||||
Information systems and communications
|
376
|
|
|
365
|
|
|
761
|
|
|
727
|
|
|||||
Transaction processing services
|
233
|
|
|
245
|
|
|
487
|
|
|
487
|
|
|||||
Occupancy
|
109
|
|
|
115
|
|
|
218
|
|
|
231
|
|
|||||
Acquisition and restructuring costs
|
12
|
|
|
12
|
|
|
23
|
|
|
21
|
|
|||||
Amortization of other intangible assets
|
58
|
|
|
59
|
|
|
116
|
|
|
119
|
|
|||||
Other
|
243
|
|
|
274
|
|
|
473
|
|
|
549
|
|
|||||
Total expenses
|
2,082
|
|
|
2,154
|
|
|
4,337
|
|
|
4,447
|
|
|||||
Income before income tax expense
|
803
|
|
|
718
|
|
|
1,577
|
|
|
1,353
|
|
|||||
Income tax expense
|
109
|
|
|
131
|
|
|
249
|
|
|
258
|
|
|||||
Net income
|
$
|
694
|
|
|
$
|
587
|
|
|
$
|
1,328
|
|
|
$
|
1,095
|
|
|
Net income available to common shareholders
|
$
|
662
|
|
|
$
|
537
|
|
|
$
|
1,242
|
|
|
$
|
989
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|||||||||
Basic
|
$
|
1.88
|
|
|
$
|
1.44
|
|
|
$
|
3.52
|
|
|
$
|
2.63
|
|
|
Diluted
|
1.86
|
|
|
1.42
|
|
|
3.48
|
|
|
2.61
|
|
|||||
Average common shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|||||||||
Basic
|
352,157
|
|
|
373,773
|
|
|
352,952
|
|
|
375,832
|
|
|||||
Diluted
|
356,413
|
|
|
377,577
|
|
|
357,028
|
|
|
379,465
|
|
|||||
Cash dividends declared per common share
|
$
|
.52
|
|
|
$
|
.47
|
|
|
$
|
1.04
|
|
|
$
|
.94
|
|
|
Three Months Ended June 30,
|
||||||
(In millions)
|
2020
|
|
2019
|
||||
Net income
|
$
|
694
|
|
|
$
|
587
|
|
Other comprehensive income, net of related taxes:
|
|
|
|
||||
Foreign currency translation, net of related taxes of $4 and $10, respectively
|
152
|
|
|
42
|
|
||
Net unrealized gains on available-for-sale securities, net of reclassification adjustment and net of related taxes of $132 and $102, respectively
|
327
|
|
|
257
|
|
||
Net unrealized gains on available-for-sale securities designated in fair value hedges, net of related taxes of $1 and $2, respectively
|
3
|
|
|
5
|
|
||
Non-credit impairment on held-to-maturity securities previously identified under ASC 320, net of related taxes of zero and zero, respectively(1)
|
—
|
|
|
1
|
|
||
Net unrealized gains on cash flow hedges, net of related taxes of $3 and zero, respectively
|
6
|
|
|
1
|
|
||
Net unrealized gains on retirement plans, net of related taxes of $1 and zero, respectively
|
2
|
|
|
—
|
|
||
Other comprehensive income
|
490
|
|
|
306
|
|
||
Total comprehensive income
|
$
|
1,184
|
|
|
$
|
893
|
|
|
|
|
|
||||
|
Six Months Ended June 30,
|
||||||
(In millions)
|
2020
|
|
2019
|
||||
Net income
|
$
|
1,328
|
|
|
$
|
1,095
|
|
Other comprehensive income, net of related taxes:
|
|
|
|
||||
Foreign currency translation, net of related taxes of ($6) and $7, respectively
|
(148
|
)
|
|
16
|
|
||
Net unrealized gains on available-for-sale securities, net of reclassification adjustment and net of related taxes of $167 and $210, respectively
|
461
|
|
|
529
|
|
||
Net unrealized (losses) gains on available-for-sale securities designated in fair value hedges, net of related taxes of ($2) and $1, respectively
|
(4
|
)
|
|
3
|
|
||
Non-credit impairment on held-to-maturity securities previously identified under ASC 320, net of related taxes of zero and $1, respectively(1)
|
—
|
|
|
1
|
|
||
Net unrealized gains on cash flow hedges, net of related taxes of $47 and $9, respectively
|
123
|
|
|
25
|
|
||
Net unrealized gains (losses) on retirement plans, net of related taxes of $5 and ($4), respectively
|
14
|
|
|
(8
|
)
|
||
Other comprehensive income
|
446
|
|
|
566
|
|
||
Total comprehensive income
|
$
|
1,774
|
|
|
$
|
1,661
|
|
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||
(Dollars in millions, except per share amounts)
|
(UNAUDITED)
|
|
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
3,685
|
|
|
$
|
3,302
|
|
Interest-bearing deposits with banks
|
90,199
|
|
|
68,965
|
|
||
Securities purchased under resale agreements
|
4,026
|
|
|
1,487
|
|
||
Trading account assets
|
883
|
|
|
914
|
|
||
Investment securities available-for-sale
|
56,231
|
|
|
53,815
|
|
||
Investment securities to held-to-maturity purchased under money market liquidity facility (less allowance for credit losses of $4) (fair value of $11,294)
|
11,257
|
|
|
—
|
|
||
Investment securities held-to-maturity (fair value of $43,037 and $42,157)
|
41,848
|
|
|
41,782
|
|
||
Loans (less allowance for credit losses on loans of $141 and $74)
|
26,719
|
|
|
26,235
|
|
||
Premises and equipment (net of accumulated depreciation of $4,591 and $4,367)
|
2,212
|
|
|
2,282
|
|
||
Accrued interest and fees receivable
|
3,235
|
|
|
3,231
|
|
||
Goodwill
|
7,538
|
|
|
7,556
|
|
||
Other intangible assets
|
1,914
|
|
|
2,030
|
|
||
Other assets
|
30,495
|
|
|
34,011
|
|
||
Total assets
|
$
|
280,242
|
|
|
$
|
245,610
|
|
Liabilities:
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Non-interest-bearing
|
$
|
42,132
|
|
|
$
|
34,031
|
|
Interest-bearing - U.S.
|
87,197
|
|
|
77,504
|
|
||
Interest-bearing - non-U.S.
|
71,133
|
|
|
70,337
|
|
||
Total deposits
|
200,462
|
|
|
181,872
|
|
||
Securities sold under repurchase agreements
|
3,513
|
|
|
1,102
|
|
||
Short-term borrowings under money market liquidity facility
|
11,261
|
|
|
—
|
|
||
Other short-term borrowings
|
912
|
|
|
839
|
|
||
Accrued expenses and other liabilities
|
23,634
|
|
|
24,857
|
|
||
Long-term debt
|
15,587
|
|
|
12,509
|
|
||
Total liabilities
|
255,369
|
|
|
221,179
|
|
||
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
|
|
||
Series D, 7,500 shares issued and outstanding
|
742
|
|
|
742
|
|
||
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 352,383,250 and 357,389,416 shares outstanding
|
504
|
|
|
504
|
|
||
Surplus
|
10,179
|
|
|
10,132
|
|
||
Retained earnings
|
22,794
|
|
|
21,918
|
|
||
Accumulated other comprehensive income (loss)
|
(430
|
)
|
|
(876
|
)
|
||
Treasury stock, at cost (151,496,392 and 146,490,226 shares)
|
(10,645
|
)
|
|
(10,209
|
)
|
||
Total shareholders’ equity
|
24,873
|
|
|
24,431
|
|
||
Total liabilities and shareholders' equity
|
$
|
280,242
|
|
|
$
|
245,610
|
|
(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
|
|
Amount
|
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||||||
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 (loss)
|
|
|
|
|
|
|
|
|
|
|
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 (loss)
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at December 31, 2019
|
$
|
2,962
|
|
|
503,880
|
|
|
$
|
504
|
|
|
$
|
10,132
|
|
|
$
|
21,918
|
|
|
$
|
(876
|
)
|
|
146,490
|
|
|
$
|
(10,209
|
)
|
|
$
|
24,431
|
|
Net income
|
|
|
|
|
|
|
|
|
634
|
|
|
|
|
|
|
|
|
634
|
|
||||||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
(44
|
)
|
|
|
|
|
|
(44
|
)
|
||||||||||||||
Preferred stock redeemed
|
(491
|
)
|
|
|
|
|
|
|
|
(9
|
)
|
|
|
|
|
|
|
|
(500
|
)
|
|||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common stock - $0.52 per share
|
|
|
|
|
|
|
|
|
(183
|
)
|
|
|
|
|
|
|
|
(183
|
)
|
||||||||||||||
Preferred stock
|
|
|
|
|
|
|
|
|
(44
|
)
|
|
|
|
|
|
|
|
(44
|
)
|
||||||||||||||
Common stock acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
6,464
|
|
|
(500
|
)
|
|
(500
|
)
|
|||||||||||||
Common stock awards exercised
|
|
|
|
|
|
|
23
|
|
|
|
|
|
|
(1,017
|
)
|
|
45
|
|
|
68
|
|
||||||||||||
Other(2)
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|||||||||||||
Balance at March 31, 2020
|
$
|
2,471
|
|
|
503,880
|
|
|
$
|
504
|
|
|
$
|
10,155
|
|
|
$
|
22,315
|
|
|
$
|
(920
|
)
|
|
151,936
|
|
|
$
|
(10,664
|
)
|
|
$
|
23,861
|
|
Net income
|
|
|
|
|
|
|
|
|
694
|
|
|
|
|
|
|
|
|
694
|
|
||||||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
490
|
|
|
|
|
|
|
490
|
|
||||||||||||||
Cash dividends declared:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common stock - $0.52 per share
|
|
|
|
|
|
|
|
|
(183
|
)
|
|
|
|
|
|
|
|
(183
|
)
|
||||||||||||||
Preferred stock
|
|
|
|
|
|
|
|
|
(32
|
)
|
|
|
|
|
|
|
|
(32
|
)
|
||||||||||||||
Common stock awards exercised
|
|
|
|
|
|
|
24
|
|
|
|
|
|
|
(443
|
)
|
|
20
|
|
|
44
|
|
||||||||||||
Other
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
3
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||
Balance at June 30, 2020
|
$
|
2,471
|
|
|
503,880
|
|
|
$
|
504
|
|
|
$
|
10,179
|
|
|
$
|
22,794
|
|
|
$
|
(430
|
)
|
|
151,496
|
|
|
$
|
(10,645
|
)
|
|
$
|
24,873
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
||||||
(In millions)
|
2020
|
|
2019
|
||||
Operating Activities:
|
|
|
|
||||
Net income
|
$
|
1,328
|
|
|
$
|
1,095
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Deferred income tax expense (benefit)
|
3
|
|
|
56
|
|
||
Amortization of other intangible assets
|
116
|
|
|
119
|
|
||
Other non-cash adjustments for depreciation, amortization and accretion, net
|
568
|
|
|
515
|
|
||
Losses (gains) related to investment securities, net
|
(2
|
)
|
|
(1
|
)
|
||
Change in trading account assets, net
|
31
|
|
|
(34
|
)
|
||
Change in accrued interest and fees receivable, net
|
(3
|
)
|
|
1
|
|
||
Change in collateral deposits, net
|
166
|
|
|
(3,711
|
)
|
||
Change in unrealized losses (gains) on foreign exchange derivatives, net
|
(789
|
)
|
|
1,601
|
|
||
Change in other assets, net
|
(844
|
)
|
|
(1,317
|
)
|
||
Change in accrued expenses and other liabilities, net
|
4,494
|
|
|
1,107
|
|
||
Other, net
|
307
|
|
|
242
|
|
||
Net cash provided by (used in) operating activities
|
5,375
|
|
|
(327
|
)
|
||
Investing Activities:
|
|
|
|
||||
Net decrease (increase) in interest-bearing deposits with banks
|
(21,234
|
)
|
|
10,506
|
|
||
Net decrease (increase) in securities purchased under resale agreements
|
(2,539
|
)
|
|
2,947
|
|
||
Proceeds from sales of available-for-sale securities
|
2,086
|
|
|
3,947
|
|
||
Proceeds from maturities of available-for-sale securities
|
10,147
|
|
|
9,166
|
|
||
Purchases of available-for-sale securities
|
(16,761
|
)
|
|
(20,216
|
)
|
||
Purchases of held-to-maturity securities under the MMLF program
|
(29,242
|
)
|
|
—
|
|
||
Proceeds from maturities of held-to-maturity securities under the MMLF program
|
18,014
|
|
|
—
|
|
||
Proceeds from maturities of held-to-maturity securities
|
6,041
|
|
|
4,917
|
|
||
Purchases of held-to-maturity securities
|
(3,997
|
)
|
|
(2,797
|
)
|
||
Net (increase) in loans
|
(551
|
)
|
|
369
|
|
||
Business acquisitions, net of cash acquired
|
—
|
|
|
(54
|
)
|
||
Purchases of equity investments and other long-term assets
|
(810
|
)
|
|
(184
|
)
|
||
Purchases of premises and equipment, net
|
(271
|
)
|
|
(342
|
)
|
||
Other, net
|
822
|
|
|
294
|
|
||
Net cash (used in) provided by investing activities
|
(38,295
|
)
|
|
8,553
|
|
||
Financing Activities:
|
|
|
|
||||
Net (decrease) increase in time deposits
|
(33,097
|
)
|
|
(5,228
|
)
|
||
Net increase (decrease) in all other deposits
|
51,686
|
|
|
(4,538
|
)
|
||
Net increase in short-term borrowings under money market liquidity facility
|
11,261
|
|
|
—
|
|
||
Net (decrease) increase in other short-term borrowings
|
2,484
|
|
|
2,594
|
|
||
Proceeds from issuance of long-term debt, net of issuance costs
|
2,497
|
|
|
—
|
|
||
Payments for long-term debt and obligations under finance leases
|
(16
|
)
|
|
(39
|
)
|
||
Payments for redemption of preferred stock
|
(500
|
)
|
|
—
|
|
||
Repurchases of common stock
|
(515
|
)
|
|
(600
|
)
|
||
Repurchases of common stock for employee tax withholding
|
(52
|
)
|
|
(56
|
)
|
||
Payments for cash dividends
|
(445
|
)
|
|
(461
|
)
|
||
Net cash (used in) financing activities
|
33,303
|
|
|
(8,328
|
)
|
||
Net increase
|
383
|
|
|
(102
|
)
|
||
Cash and due from banks at beginning of period
|
3,302
|
|
|
3,212
|
|
||
Cash and due from banks at end of period
|
$
|
3,685
|
|
|
$
|
3,110
|
|
•
|
An increase of $1 million in the allowance for credit losses related to loans and other financial assets held at amortized cost.
|
•
|
An increase of $2 million in the allowance for credit losses related to off-balance sheet commitments
|
|
Fair Value Measurements on a Recurring Basis
|
||||||||||||||||||
|
As of June 30, 2020
|
||||||||||||||||||
(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
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
$
|
35
|
|
||
Non-U.S. government securities
|
94
|
|
|
225
|
|
|
—
|
|
|
|
|
319
|
|
||||||
Other
|
17
|
|
|
512
|
|
|
—
|
|
|
|
|
529
|
|
||||||
Total trading account assets
|
146
|
|
|
737
|
|
|
—
|
|
|
|
|
883
|
|
||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
||||||||||
Direct obligations
|
5,804
|
|
|
—
|
|
|
—
|
|
|
|
|
5,804
|
|
||||||
Mortgage-backed securities
|
—
|
|
|
16,676
|
|
|
—
|
|
|
|
|
16,676
|
|
||||||
Total U.S. Treasury and federal agencies
|
5,804
|
|
|
16,676
|
|
|
—
|
|
|
|
|
22,480
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Student loans
|
—
|
|
|
404
|
|
|
—
|
|
|
|
|
404
|
|
||||||
Credit cards
|
—
|
|
|
90
|
|
|
—
|
|
|
|
|
90
|
|
||||||
Collateralized loan obligations
|
—
|
|
|
50
|
|
|
1,869
|
|
|
|
|
1,919
|
|
||||||
Total asset-backed securities
|
—
|
|
|
544
|
|
|
1,869
|
|
|
|
|
2,413
|
|
||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed securities
|
—
|
|
|
1,706
|
|
|
—
|
|
|
|
|
1,706
|
|
||||||
Asset-backed securities
|
—
|
|
|
1,015
|
|
|
876
|
|
|
|
|
1,891
|
|
||||||
Government securities
|
—
|
|
|
13,119
|
|
|
—
|
|
|
|
|
13,119
|
|
||||||
Other(2)
|
—
|
|
|
10,017
|
|
|
45
|
|
|
|
|
10,062
|
|
||||||
Total non-U.S. debt securities
|
—
|
|
|
25,857
|
|
|
921
|
|
|
|
|
26,778
|
|
||||||
State and political subdivisions
|
—
|
|
|
1,723
|
|
|
—
|
|
|
|
|
1,723
|
|
||||||
Collateralized mortgage obligations
|
—
|
|
|
90
|
|
|
—
|
|
|
|
|
90
|
|
||||||
Other U.S. debt securities
|
—
|
|
|
2,747
|
|
|
—
|
|
|
|
|
2,747
|
|
||||||
Total available-for-sale investment securities
|
5,804
|
|
|
47,637
|
|
|
2,790
|
|
|
|
|
56,231
|
|
||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts
|
4
|
|
|
15,984
|
|
|
2
|
|
|
$
|
(11,254
|
)
|
|
4,736
|
|
||||
Interest rate contracts
|
—
|
|
|
51
|
|
|
—
|
|
|
(16
|
)
|
|
35
|
|
|||||
Total derivative instruments
|
4
|
|
|
16,035
|
|
|
2
|
|
|
(11,270
|
)
|
|
4,771
|
|
|||||
Other
|
—
|
|
|
280
|
|
|
—
|
|
|
—
|
|
|
280
|
|
|||||
Total assets carried at fair value
|
$
|
5,954
|
|
|
$
|
64,689
|
|
|
$
|
2,792
|
|
|
$
|
(11,270
|
)
|
|
$
|
62,165
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accrued expenses and other liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Other
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts
|
$
|
5
|
|
|
$
|
15,679
|
|
|
$
|
1
|
|
|
$
|
(10,831
|
)
|
|
$
|
4,854
|
|
Interest rate contracts
|
4
|
|
|
52
|
|
|
—
|
|
|
(16
|
)
|
|
40
|
|
|||||
Other derivative contracts
|
—
|
|
|
185
|
|
|
—
|
|
|
—
|
|
|
185
|
|
|||||
Total derivative instruments
|
9
|
|
|
15,916
|
|
|
1
|
|
|
(10,847
|
)
|
|
5,079
|
|
|||||
Total liabilities carried at fair value
|
$
|
13
|
|
|
$
|
15,916
|
|
|
$
|
1
|
|
|
$
|
(10,847
|
)
|
|
$
|
5,083
|
|
|
|
|
|
|
Fair Value Measurements on a Recurring Basis
|
||||||||||||||||||
|
As of December 31, 2019
|
||||||||||||||||||
(In millions)
|
Quoted Market
Prices in Active
Markets
(Level 1)
|
|
Pricing Methods
with Significant
Observable
Market Inputs
(Level 2)
|
|
Pricing Methods
with Significant
Unobservable
Market Inputs
(Level 3)
|
|
Impact of Netting(1)
|
|
Total Net
Carrying Value
in Consolidated
Statement of
Condition
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government securities
|
$
|
34
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
$
|
34
|
|
||
Non-U.S. government securities
|
146
|
|
|
173
|
|
|
—
|
|
|
|
|
319
|
|
||||||
Other
|
21
|
|
|
540
|
|
|
—
|
|
|
|
|
561
|
|
||||||
Total trading account assets
|
201
|
|
|
713
|
|
|
—
|
|
|
|
|
914
|
|
||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
||||||||||
Direct obligations
|
3,487
|
|
|
—
|
|
|
—
|
|
|
|
|
3,487
|
|
||||||
Mortgage-backed securities
|
—
|
|
|
17,838
|
|
|
—
|
|
|
|
|
17,838
|
|
||||||
Total U.S. Treasury and federal agencies
|
3,487
|
|
|
17,838
|
|
|
—
|
|
|
|
|
21,325
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Student loans
|
—
|
|
|
531
|
|
|
—
|
|
|
|
|
531
|
|
||||||
Credit cards
|
—
|
|
|
89
|
|
|
—
|
|
|
|
|
89
|
|
||||||
Collateralized loan obligations
|
—
|
|
|
—
|
|
|
1,820
|
|
|
|
|
1,820
|
|
||||||
Total asset-backed securities
|
—
|
|
|
620
|
|
|
1,820
|
|
|
|
|
2,440
|
|
||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Mortgage-backed securities
|
—
|
|
|
1,980
|
|
|
—
|
|
|
|
|
1,980
|
|
||||||
Asset-backed securities
|
—
|
|
|
1,292
|
|
|
887
|
|
|
|
|
2,179
|
|
||||||
Government securities
|
—
|
|
|
12,373
|
|
|
—
|
|
|
|
|
12,373
|
|
||||||
Other(2)
|
—
|
|
|
8,613
|
|
|
45
|
|
|
|
|
8,658
|
|
||||||
Total non-U.S. debt securities
|
—
|
|
|
24,258
|
|
|
932
|
|
|
|
|
25,190
|
|
||||||
State and political subdivisions
|
—
|
|
|
1,783
|
|
|
—
|
|
|
|
|
1,783
|
|
||||||
Collateralized mortgage obligations
|
—
|
|
|
104
|
|
|
—
|
|
|
|
|
104
|
|
||||||
Other U.S. debt securities
|
—
|
|
|
2,973
|
|
|
—
|
|
|
|
|
2,973
|
|
||||||
Total available-for-sale investment securities
|
3,487
|
|
|
47,576
|
|
|
2,752
|
|
|
|
|
53,815
|
|
||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts
|
—
|
|
|
15,136
|
|
|
4
|
|
|
$
|
(10,391
|
)
|
|
4,749
|
|
||||
Interest rate contracts
|
—
|
|
|
8
|
|
|
—
|
|
|
(4
|
)
|
|
4
|
|
|||||
Total derivative instruments
|
—
|
|
|
15,144
|
|
|
4
|
|
|
(10,395
|
)
|
|
4,753
|
|
|||||
Other
|
—
|
|
|
504
|
|
|
—
|
|
|
—
|
|
|
504
|
|
|||||
Total assets carried at fair value
|
$
|
3,688
|
|
|
$
|
63,937
|
|
|
$
|
2,756
|
|
|
$
|
(10,395
|
)
|
|
$
|
59,986
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accrued expenses and other liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading account liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Other
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts
|
$
|
3
|
|
|
$
|
15,144
|
|
|
$
|
3
|
|
|
$
|
(8,918
|
)
|
|
$
|
6,232
|
|
Interest rate contracts
|
6
|
|
|
43
|
|
|
—
|
|
|
(4
|
)
|
|
45
|
|
|||||
Other derivative contracts
|
—
|
|
|
182
|
|
|
—
|
|
|
—
|
|
|
182
|
|
|||||
Total derivative instruments
|
9
|
|
|
15,369
|
|
|
3
|
|
|
(8,922
|
)
|
|
6,459
|
|
|||||
Total liabilities carried at fair value
|
$
|
14
|
|
|
$
|
15,369
|
|
|
$
|
3
|
|
|
$
|
(8,922
|
)
|
|
$
|
6,464
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs
|
||||||||||||||||||||||||||||||||||||||
|
Six Months Ended June 30, 2020
|
||||||||||||||||||||||||||||||||||||||
|
Fair
Value as of December 31, 2019 |
|
Total Realized and
Unrealized Gains (Losses) |
|
Purchases
|
|
Sales
|
|
Settlements
|
|
Transfers into
Level 3
|
|
Transfers
out of Level 3
|
|
Fair Value
as of June 30, 2020(1) |
|
Change in Unrealized
Gains (Losses) Related to Financial Instruments Held as of June 30, 2020 |
||||||||||||||||||||||
(In millions)
|
|
Recorded in Revenue(1)
|
|
Recorded in Other Comprehensive Income(1)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Available-for-sale Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Collateralized loan obligations
|
$
|
1,820
|
|
|
$
|
—
|
|
|
$
|
(24
|
)
|
|
$
|
188
|
|
|
$
|
(61
|
)
|
|
$
|
(54
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,869
|
|
|
|
||
Total asset-backed securities
|
1,820
|
|
|
—
|
|
|
(24
|
)
|
|
188
|
|
|
(61
|
)
|
|
(54
|
)
|
|
—
|
|
|
—
|
|
|
1,869
|
|
|
|
|||||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Asset-backed securities
|
887
|
|
|
—
|
|
|
(10
|
)
|
|
1
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
876
|
|
|
|
|||||||||||
Other
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
|
|||||||||||
Total non-U.S. debt securities
|
932
|
|
|
—
|
|
|
(10
|
)
|
|
1
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
921
|
|
|
|
|||||||||||
Total available-for-sale investment securities
|
2,752
|
|
|
—
|
|
|
(34
|
)
|
|
189
|
|
|
(61
|
)
|
|
(56
|
)
|
|
—
|
|
|
—
|
|
|
2,790
|
|
|
|
|||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Foreign exchange contracts
|
4
|
|
|
(6
|
)
|
|
—
|
|
|
5
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
2
|
|
|
$
|
(3
|
)
|
|||||||||
Total derivative instruments
|
4
|
|
|
(6
|
)
|
|
—
|
|
|
5
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(3
|
)
|
||||||||||
Total assets carried at fair value
|
$
|
2,756
|
|
|
$
|
(6
|
)
|
|
$
|
(34
|
)
|
|
$
|
194
|
|
|
$
|
(61
|
)
|
|
$
|
(57
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,792
|
|
|
$
|
(3
|
)
|
|
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs
|
||||||||||||||||||||||||||||||||||||||
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||||||||||||||||||
|
Fair Value as of
March 31, 2019 |
|
Total Realized and
Unrealized Gains (Losses) |
|
Purchases
|
|
Sales
|
|
Settlements
|
|
Transfers into
Level 3 |
|
Transfers
out of Level 3 |
|
Fair Value
as of June 30, 2019(1) |
|
Change in Unrealized Gains (Losses) Related to Financial Instruments
Held as of June 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
|
668
|
|
|
—
|
|
|
2
|
|
|
455
|
|
|
—
|
|
|
(119
|
)
|
|
216
|
|
|
—
|
|
|
1,222
|
|
|
|
|||||||||||
Total asset-backed securities
|
668
|
|
|
—
|
|
|
2
|
|
|
455
|
|
|
—
|
|
|
(119
|
)
|
|
216
|
|
|
—
|
|
|
1,222
|
|
|
|
|||||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Asset-backed securities
|
627
|
|
|
—
|
|
|
3
|
|
|
82
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
721
|
|
|
|
|||||||||||
Other
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|
|
|||||||||||
Total non-U.S. debt securities
|
672
|
|
|
—
|
|
|
3
|
|
|
82
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
767
|
|
|
|
|||||||||||
Total Available-for-sale investment securities
|
1,340
|
|
|
—
|
|
|
5
|
|
|
660
|
|
|
—
|
|
|
(109
|
)
|
|
216
|
|
|
—
|
|
|
2,112
|
|
|
|
|||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Foreign exchange contracts
|
4
|
|
|
(3
|
)
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
$
|
(2
|
)
|
|||||||||
Total derivative instruments
|
4
|
|
|
(3
|
)
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
(2
|
)
|
||||||||||
Total assets carried at fair value
|
$
|
1,344
|
|
|
$
|
(3
|
)
|
|
$
|
5
|
|
|
$
|
670
|
|
|
$
|
—
|
|
|
$
|
(109
|
)
|
|
$
|
216
|
|
|
$
|
—
|
|
|
$
|
2,123
|
|
|
$
|
(2
|
)
|
|
|
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs
|
||||||||||||||||||||||||||||||||||||||
|
Six Months Ended June 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 June 30, 2019(1) |
|
Change in Unrealized Gains (Losses) Related to Financial Instruments
Held as of June 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
|
|
|
—
|
|
|
587
|
|
|
—
|
|
|
(175
|
)
|
|
216
|
|
|
—
|
|
|
1,222
|
|
|
|
|||||||||||
Total asset-backed securities
|
593
|
|
|
1
|
|
|
—
|
|
|
587
|
|
|
—
|
|
|
(175
|
)
|
|
216
|
|
|
—
|
|
|
1,222
|
|
|
|
|||||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Asset-backed securities
|
631
|
|
|
—
|
|
|
1
|
|
|
92
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
721
|
|
|
|
|||||||||||
Other
|
58
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
46
|
|
|
|
|||||||||||
Total non-U.S. debt securities
|
689
|
|
|
—
|
|
|
1
|
|
|
92
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(12
|
)
|
|
767
|
|
|
|
|||||||||||
Collateralized mortgage obligations
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||||||||
Total Available-for-sale investment securities
|
1,284
|
|
|
1
|
|
|
1
|
|
|
802
|
|
|
—
|
|
|
(180
|
)
|
|
216
|
|
|
(12
|
)
|
|
2,112
|
|
|
|
|||||||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Foreign exchange contracts
|
4
|
|
|
(5
|
)
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
$
|
(2
|
)
|
|||||||||
Total derivative instruments
|
4
|
|
|
(5
|
)
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
(2
|
)
|
||||||||||
Total assets carried at fair value
|
$
|
1,288
|
|
|
$
|
(4
|
)
|
|
$
|
1
|
|
|
$
|
814
|
|
|
$
|
—
|
|
|
$
|
(180
|
)
|
|
$
|
216
|
|
|
$
|
(12
|
)
|
|
$
|
2,123
|
|
|
$
|
(2
|
)
|
|
|
|
|
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||||||||||||
|
Fair Value
|
|
|
|
|
|
Range
|
|
Weighted-Average
|
||||||||||
(Dollars in millions)
|
As of June 30, 2020
|
|
As of December 31, 2019
|
|
Valuation Technique
|
|
Significant Unobservable Input(1)
|
|
As of June 30, 2020
|
|
As of June 30, 2020
|
|
As of December 31, 2019
|
||||||
Significant unobservable inputs readily available to State Street:
|
|||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivative Instruments, foreign exchange contracts
|
$
|
2
|
|
|
$
|
4
|
|
|
Option model
|
|
Volatility
|
|
6.3% - 13.9%
|
|
8.6
|
%
|
|
8.2
|
%
|
Total
|
$
|
2
|
|
|
$
|
4
|
|
|
|
|
|
|
|
|
|
|
|
||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivative instruments, foreign exchange contracts
|
$
|
1
|
|
|
$
|
3
|
|
|
Option model
|
|
Volatility
|
|
6.3% - 12.7%
|
|
8.9
|
%
|
|
7.0
|
%
|
Total
|
$
|
1
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
||||||||||
June 30, 2020
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash and due from banks
|
$
|
3,685
|
|
|
$
|
3,685
|
|
|
$
|
3,685
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest-bearing deposits with banks
|
90,199
|
|
|
90,199
|
|
|
—
|
|
|
90,199
|
|
|
—
|
|
|||||
Securities purchased under resale agreements
|
4,026
|
|
|
4,026
|
|
|
—
|
|
|
4,026
|
|
|
—
|
|
|||||
HTM securities purchased under the MMLF program
|
11,257
|
|
|
11,294
|
|
|
—
|
|
|
11,294
|
|
|
—
|
|
|||||
Investment securities held-to-maturity
|
41,848
|
|
|
43,037
|
|
|
8,288
|
|
|
34,344
|
|
|
405
|
|
|||||
Net loans(1)
|
26,719
|
|
|
26,583
|
|
|
—
|
|
|
24,511
|
|
|
2,072
|
|
|||||
Other(2)
|
2,502
|
|
|
2,502
|
|
|
—
|
|
|
2,502
|
|
|
—
|
|
|||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest-bearing
|
$
|
42,132
|
|
|
$
|
42,132
|
|
|
$
|
—
|
|
|
$
|
42,132
|
|
|
$
|
—
|
|
Interest-bearing - U.S.
|
87,197
|
|
|
87,197
|
|
|
—
|
|
|
87,197
|
|
|
—
|
|
|||||
Interest-bearing - non-U.S.
|
71,133
|
|
|
71,133
|
|
|
—
|
|
|
71,133
|
|
|
—
|
|
|||||
Securities sold under repurchase agreements
|
3,513
|
|
|
3,513
|
|
|
—
|
|
|
3,513
|
|
|
—
|
|
|||||
Short-term borrowings under the MMLF program
|
11,261
|
|
|
11,261
|
|
|
—
|
|
|
11,261
|
|
|
—
|
|
|||||
Other short-term borrowings
|
912
|
|
|
912
|
|
|
—
|
|
|
912
|
|
|
—
|
|
|||||
Long-term debt
|
15,587
|
|
|
15,865
|
|
|
—
|
|
|
15,732
|
|
|
133
|
|
|||||
Other(2)
|
2,502
|
|
|
2,502
|
|
|
—
|
|
|
2,502
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
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, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
3,302
|
|
|
$
|
3,302
|
|
|
$
|
3,302
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest-bearing deposits with banks
|
68,965
|
|
|
68,965
|
|
|
—
|
|
|
68,965
|
|
|
—
|
|
|||||
Securities purchased under resale agreements
|
1,487
|
|
|
1,487
|
|
|
—
|
|
|
1,487
|
|
|
—
|
|
|||||
Investment securities held-to-maturity
|
41,782
|
|
|
42,157
|
|
|
10,299
|
|
|
31,682
|
|
|
176
|
|
|||||
Net loans(1)
|
26,235
|
|
|
26,292
|
|
|
—
|
|
|
24,432
|
|
|
1,860
|
|
|||||
Other(2)
|
7,500
|
|
|
7,500
|
|
|
—
|
|
|
7,500
|
|
|
—
|
|
|||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest-bearing
|
$
|
34,031
|
|
|
$
|
34,031
|
|
|
$
|
—
|
|
|
$
|
34,031
|
|
|
$
|
—
|
|
Interest-bearing - U.S.
|
77,504
|
|
|
77,504
|
|
|
—
|
|
|
77,504
|
|
|
—
|
|
|||||
Interest-bearing - non-U.S.
|
70,337
|
|
|
70,337
|
|
|
—
|
|
|
70,337
|
|
|
—
|
|
|||||
Securities sold under repurchase agreements
|
1,102
|
|
|
1,102
|
|
|
—
|
|
|
1,102
|
|
|
—
|
|
|||||
Other short-term borrowings
|
839
|
|
|
839
|
|
|
—
|
|
|
839
|
|
|
—
|
|
|||||
Long-term debt
|
12,509
|
|
|
12,770
|
|
|
—
|
|
|
12,621
|
|
|
149
|
|
|||||
Other(2)
|
7,500
|
|
|
7,500
|
|
|
—
|
|
|
7,500
|
|
|
—
|
|
|
|
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||||||||||||||||||||
|
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
|
$
|
5,631
|
|
|
$
|
173
|
|
|
$
|
—
|
|
|
$
|
5,804
|
|
|
$
|
3,506
|
|
|
$
|
9
|
|
|
$
|
28
|
|
|
$
|
3,487
|
|
Mortgage-backed securities
|
16,118
|
|
|
564
|
|
|
6
|
|
|
16,676
|
|
|
17,599
|
|
|
264
|
|
|
25
|
|
|
17,838
|
|
||||||||
Total U.S. Treasury and federal agencies
|
21,749
|
|
|
737
|
|
|
6
|
|
|
22,480
|
|
|
21,105
|
|
|
273
|
|
|
53
|
|
|
21,325
|
|
||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Student loans(1)
|
409
|
|
|
2
|
|
|
7
|
|
|
404
|
|
|
532
|
|
|
1
|
|
|
2
|
|
|
531
|
|
||||||||
Credit cards
|
90
|
|
|
—
|
|
|
—
|
|
|
90
|
|
|
90
|
|
|
—
|
|
|
1
|
|
|
89
|
|
||||||||
Collateralized loan obligations
|
1,949
|
|
|
—
|
|
|
30
|
|
|
1,919
|
|
|
1,822
|
|
|
1
|
|
|
3
|
|
|
1,820
|
|
||||||||
Total asset-backed securities
|
2,448
|
|
|
2
|
|
|
37
|
|
|
2,413
|
|
|
2,444
|
|
|
2
|
|
|
6
|
|
|
2,440
|
|
||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Mortgage-backed securities
|
1,714
|
|
|
—
|
|
|
8
|
|
|
1,706
|
|
|
1,978
|
|
|
3
|
|
|
1
|
|
|
1,980
|
|
||||||||
Asset-backed securities
|
1,906
|
|
|
—
|
|
|
15
|
|
|
1,891
|
|
|
2,179
|
|
|
2
|
|
|
2
|
|
|
2,179
|
|
||||||||
Government securities
|
12,964
|
|
|
162
|
|
|
7
|
|
|
13,119
|
|
|
12,243
|
|
|
131
|
|
|
1
|
|
|
12,373
|
|
||||||||
Other(2)
|
9,935
|
|
|
135
|
|
|
8
|
|
|
10,062
|
|
|
8,595
|
|
|
73
|
|
|
10
|
|
|
8,658
|
|
||||||||
Total non-U.S. debt securities
|
26,519
|
|
|
297
|
|
|
38
|
|
|
26,778
|
|
|
24,995
|
|
|
209
|
|
|
14
|
|
|
25,190
|
|
||||||||
State and political subdivisions(3)
|
1,654
|
|
|
73
|
|
|
4
|
|
|
1,723
|
|
|
1,725
|
|
|
59
|
|
|
1
|
|
|
1,783
|
|
||||||||
Collateralized mortgage obligations
|
89
|
|
|
1
|
|
|
—
|
|
|
90
|
|
|
104
|
|
|
—
|
|
|
—
|
|
|
104
|
|
||||||||
Other U.S. debt securities
|
2,685
|
|
|
63
|
|
|
1
|
|
|
2,747
|
|
|
2,941
|
|
|
32
|
|
|
—
|
|
|
2,973
|
|
||||||||
Total
|
$
|
55,144
|
|
|
$
|
1,173
|
|
|
$
|
86
|
|
|
$
|
56,231
|
|
|
$
|
53,314
|
|
|
$
|
575
|
|
|
$
|
74
|
|
|
$
|
53,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Direct obligations
|
$
|
8,179
|
|
|
$
|
138
|
|
|
$
|
—
|
|
|
$
|
8,317
|
|
|
$
|
10,311
|
|
|
$
|
24
|
|
|
$
|
3
|
|
|
$
|
10,332
|
|
Mortgage-backed securities
|
28,204
|
|
|
1,079
|
|
|
7
|
|
|
29,276
|
|
|
26,297
|
|
|
316
|
|
|
44
|
|
|
26,569
|
|
||||||||
Total U.S. Treasury and federal agencies
|
36,383
|
|
|
1,217
|
|
|
7
|
|
|
37,593
|
|
|
36,608
|
|
|
340
|
|
|
47
|
|
|
36,901
|
|
||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Student loans(1)
|
4,148
|
|
|
8
|
|
|
104
|
|
|
4,052
|
|
|
3,783
|
|
|
10
|
|
|
41
|
|
|
3,752
|
|
||||||||
Total asset-backed securities
|
4,148
|
|
|
8
|
|
|
104
|
|
|
4,052
|
|
|
3,783
|
|
|
10
|
|
|
41
|
|
|
3,752
|
|
||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Mortgage-backed securities
|
339
|
|
|
60
|
|
|
7
|
|
|
392
|
|
|
366
|
|
|
82
|
|
|
6
|
|
|
442
|
|
||||||||
Government securities
|
393
|
|
|
—
|
|
|
—
|
|
|
393
|
|
|
328
|
|
|
—
|
|
|
—
|
|
|
328
|
|
||||||||
Total non-U.S. debt securities
|
732
|
|
|
60
|
|
|
7
|
|
|
785
|
|
|
694
|
|
|
82
|
|
|
6
|
|
|
770
|
|
||||||||
Collateralized mortgage obligations
|
585
|
|
|
28
|
|
|
6
|
|
|
607
|
|
|
697
|
|
|
38
|
|
|
1
|
|
|
734
|
|
||||||||
Total(4)
|
41,848
|
|
|
1,313
|
|
|
124
|
|
|
43,037
|
|
|
41,782
|
|
|
470
|
|
|
95
|
|
|
42,157
|
|
||||||||
HTM securities purchased under the MMLF program(5)
|
11,261
|
|
|
33
|
|
|
—
|
|
|
11,294
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total held-to-maturity securities
|
$
|
53,109
|
|
|
$
|
1,346
|
|
|
$
|
124
|
|
|
$
|
54,331
|
|
|
$
|
41,782
|
|
|
$
|
470
|
|
|
$
|
95
|
|
|
$
|
42,157
|
|
|
|
|
|
|
As of June 30, 2020
|
||||||||||||||||||||||
|
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
|
$
|
350
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
350
|
|
|
$
|
—
|
|
Mortgage-backed securities
|
1,001
|
|
|
5
|
|
|
124
|
|
|
1
|
|
|
1,125
|
|
|
6
|
|
||||||
Total U.S. Treasury and federal agencies
|
1,351
|
|
|
5
|
|
|
124
|
|
|
1
|
|
|
1,475
|
|
|
6
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Student loans
|
268
|
|
|
7
|
|
|
71
|
|
|
—
|
|
|
339
|
|
|
7
|
|
||||||
Credit cards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Collateralized loan obligations
|
1,586
|
|
|
25
|
|
|
283
|
|
|
5
|
|
|
1,869
|
|
|
30
|
|
||||||
Total asset-backed securities
|
1,854
|
|
|
32
|
|
|
354
|
|
|
5
|
|
|
2,208
|
|
|
37
|
|
||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
1,246
|
|
|
6
|
|
|
206
|
|
|
2
|
|
|
1,452
|
|
|
8
|
|
||||||
Asset-backed securities
|
1,483
|
|
|
13
|
|
|
105
|
|
|
2
|
|
|
1,588
|
|
|
15
|
|
||||||
Government securities
|
1,145
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
1,145
|
|
|
7
|
|
||||||
Other
|
856
|
|
|
7
|
|
|
747
|
|
|
1
|
|
|
1,603
|
|
|
8
|
|
||||||
Total non-U.S. debt securities
|
4,730
|
|
|
33
|
|
|
1,058
|
|
|
5
|
|
|
5,788
|
|
|
38
|
|
||||||
State and political subdivisions
|
344
|
|
|
3
|
|
|
22
|
|
|
1
|
|
|
366
|
|
|
4
|
|
||||||
Other U.S. debt securities
|
212
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
212
|
|
|
1
|
|
||||||
Total
|
$
|
8,491
|
|
|
$
|
74
|
|
|
$
|
1,558
|
|
|
$
|
12
|
|
|
$
|
10,049
|
|
|
$
|
86
|
|
|
As of December 31, 2019
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||||||||
(In millions)
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Direct obligations
|
$
|
1,430
|
|
|
$
|
28
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,430
|
|
|
$
|
28
|
|
Mortgage-backed securities
|
2,499
|
|
|
7
|
|
|
1,665
|
|
|
18
|
|
|
4,164
|
|
|
25
|
|
||||||
Total U.S. Treasury and federal agencies
|
3,929
|
|
|
35
|
|
|
1,665
|
|
|
18
|
|
|
5,594
|
|
|
53
|
|
||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Student loans
|
271
|
|
|
1
|
|
|
127
|
|
|
1
|
|
|
398
|
|
|
2
|
|
||||||
Credit cards
|
89
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
89
|
|
|
1
|
|
||||||
Collateralized loan obligations
|
862
|
|
|
2
|
|
|
278
|
|
|
1
|
|
|
1,140
|
|
|
3
|
|
||||||
Total asset-backed securities
|
1,222
|
|
|
4
|
|
|
405
|
|
|
2
|
|
|
1,627
|
|
|
6
|
|
||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
228
|
|
|
—
|
|
|
220
|
|
|
1
|
|
|
448
|
|
|
1
|
|
||||||
Asset-backed securities
|
672
|
|
|
1
|
|
|
109
|
|
|
1
|
|
|
781
|
|
|
2
|
|
||||||
Government securities
|
3,246
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
3,246
|
|
|
1
|
|
||||||
Other
|
2,736
|
|
|
9
|
|
|
187
|
|
|
1
|
|
|
2,923
|
|
|
10
|
|
||||||
Total non-U.S. debt securities
|
6,882
|
|
|
11
|
|
|
516
|
|
|
3
|
|
|
7,398
|
|
|
14
|
|
||||||
State and political subdivisions
|
163
|
|
|
—
|
|
|
22
|
|
|
1
|
|
|
185
|
|
|
1
|
|
||||||
Collateralized mortgage obligations
|
13
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
17
|
|
|
—
|
|
||||||
Other U.S. debt securities
|
219
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
233
|
|
|
—
|
|
||||||
Total
|
$
|
12,428
|
|
|
$
|
50
|
|
|
$
|
2,626
|
|
|
$
|
24
|
|
|
$
|
15,054
|
|
|
$
|
74
|
|
|
As of June 30, 2020
|
||||||||||||||||||||||||||||||||||||||
(In millions)
|
Under 1 Year
|
|
1 to 5 Years
|
|
6 to 10 Years
|
|
Over 10 Years
|
|
Total
|
||||||||||||||||||||||||||||||
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Direct obligations
|
$
|
1,560
|
|
|
$
|
1,569
|
|
|
$
|
2,022
|
|
|
$
|
2,057
|
|
|
$
|
2,049
|
|
|
$
|
2,178
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,631
|
|
|
$
|
5,804
|
|
Mortgage-backed securities
|
199
|
|
|
206
|
|
|
706
|
|
|
726
|
|
|
2,639
|
|
|
2,672
|
|
|
12,574
|
|
|
13,072
|
|
|
16,118
|
|
|
16,676
|
|
||||||||||
Total U.S. Treasury and federal agencies
|
1,759
|
|
|
1,775
|
|
|
2,728
|
|
|
2,783
|
|
|
4,688
|
|
|
4,850
|
|
|
12,574
|
|
|
13,072
|
|
|
21,749
|
|
|
22,480
|
|
||||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Student loans
|
163
|
|
|
164
|
|
|
127
|
|
|
126
|
|
|
2
|
|
|
2
|
|
|
117
|
|
|
112
|
|
|
409
|
|
|
404
|
|
||||||||||
Credit cards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
90
|
|
|
90
|
|
|
—
|
|
|
—
|
|
|
90
|
|
|
90
|
|
||||||||||
Collateralized loan obligations
|
31
|
|
|
29
|
|
|
978
|
|
|
964
|
|
|
823
|
|
|
811
|
|
|
117
|
|
|
115
|
|
|
1,949
|
|
|
1,919
|
|
||||||||||
Total asset-backed securities
|
194
|
|
|
193
|
|
|
1,105
|
|
|
1,090
|
|
|
915
|
|
|
903
|
|
|
234
|
|
|
227
|
|
|
2,448
|
|
|
2,413
|
|
||||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Mortgage-backed securities
|
252
|
|
|
251
|
|
|
550
|
|
|
546
|
|
|
130
|
|
|
129
|
|
|
782
|
|
|
780
|
|
|
1,714
|
|
|
1,706
|
|
||||||||||
Asset-backed securities
|
272
|
|
|
270
|
|
|
984
|
|
|
977
|
|
|
318
|
|
|
315
|
|
|
332
|
|
|
329
|
|
|
1,906
|
|
|
1,891
|
|
||||||||||
Government securities
|
4,690
|
|
|
4,694
|
|
|
7,339
|
|
|
7,488
|
|
|
689
|
|
|
693
|
|
|
246
|
|
|
244
|
|
|
12,964
|
|
|
13,119
|
|
||||||||||
Other
|
1,446
|
|
|
1,452
|
|
|
6,968
|
|
|
7,068
|
|
|
1,431
|
|
|
1,451
|
|
|
90
|
|
|
91
|
|
|
9,935
|
|
|
10,062
|
|
||||||||||
Total non-U.S. debt securities
|
6,660
|
|
|
6,667
|
|
|
15,841
|
|
|
16,079
|
|
|
2,568
|
|
|
2,588
|
|
|
1,450
|
|
|
1,444
|
|
|
26,519
|
|
|
26,778
|
|
||||||||||
State and political subdivisions
|
169
|
|
|
169
|
|
|
669
|
|
|
683
|
|
|
526
|
|
|
564
|
|
|
290
|
|
|
307
|
|
|
1,654
|
|
|
1,723
|
|
||||||||||
Collateralized mortgage obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89
|
|
|
90
|
|
|
89
|
|
|
90
|
|
||||||||||
Other U.S. debt securities
|
695
|
|
|
700
|
|
|
1,887
|
|
|
1,938
|
|
|
103
|
|
|
109
|
|
|
—
|
|
|
—
|
|
|
2,685
|
|
|
2,747
|
|
||||||||||
Total
|
$
|
9,477
|
|
|
$
|
9,504
|
|
|
$
|
22,230
|
|
|
$
|
22,573
|
|
|
$
|
8,800
|
|
|
$
|
9,014
|
|
|
$
|
14,637
|
|
|
$
|
15,140
|
|
|
$
|
55,144
|
|
|
$
|
56,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
U.S. Treasury and federal agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Direct obligations
|
$
|
3,310
|
|
|
$
|
3,332
|
|
|
$
|
4,840
|
|
|
$
|
4,956
|
|
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
8,179
|
|
|
$
|
8,317
|
|
Mortgage-backed securities
|
61
|
|
|
63
|
|
|
545
|
|
|
557
|
|
|
3,716
|
|
|
3,898
|
|
|
23,882
|
|
|
24,758
|
|
|
28,204
|
|
|
29,276
|
|
||||||||||
Total U.S. Treasury and federal agencies
|
3,371
|
|
|
3,395
|
|
|
5,385
|
|
|
5,513
|
|
|
3,721
|
|
|
3,903
|
|
|
23,906
|
|
|
24,782
|
|
|
36,383
|
|
|
37,593
|
|
||||||||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Student loans
|
359
|
|
|
343
|
|
|
200
|
|
|
193
|
|
|
539
|
|
|
523
|
|
|
3,050
|
|
|
2,993
|
|
|
4,148
|
|
|
4,052
|
|
||||||||||
Total asset-backed securities
|
359
|
|
|
343
|
|
|
200
|
|
|
193
|
|
|
539
|
|
|
523
|
|
|
3,050
|
|
|
2,993
|
|
|
4,148
|
|
|
4,052
|
|
||||||||||
Non-U.S. debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Mortgage-backed securities
|
117
|
|
|
112
|
|
|
27
|
|
|
27
|
|
|
3
|
|
|
3
|
|
|
192
|
|
|
250
|
|
|
339
|
|
|
392
|
|
||||||||||
Government securities
|
393
|
|
|
393
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
393
|
|
|
393
|
|
||||||||||
Total non-U.S. debt securities
|
510
|
|
|
505
|
|
|
27
|
|
|
27
|
|
|
3
|
|
|
3
|
|
|
192
|
|
|
250
|
|
|
732
|
|
|
785
|
|
||||||||||
Collateralized mortgage obligations
|
149
|
|
|
157
|
|
|
274
|
|
|
273
|
|
|
5
|
|
|
5
|
|
|
157
|
|
|
172
|
|
|
585
|
|
|
607
|
|
||||||||||
Total
|
4,389
|
|
|
4,400
|
|
|
5,886
|
|
|
6,006
|
|
|
4,268
|
|
|
4,434
|
|
|
27,305
|
|
|
28,197
|
|
|
41,848
|
|
|
43,037
|
|
||||||||||
Held-to-maturity under money market mutual fund liquidity facility
|
11,261
|
|
|
11,294
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,261
|
|
|
11,294
|
|
||||||||||
Total held-to-maturity securities
|
$
|
15,650
|
|
|
$
|
15,694
|
|
|
$
|
5,886
|
|
|
$
|
6,006
|
|
|
$
|
4,268
|
|
|
$
|
4,434
|
|
|
$
|
27,305
|
|
|
$
|
28,197
|
|
|
$
|
53,109
|
|
|
$
|
54,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
the identification and evaluation of securities that have indications of potential impairment, such as issuer-specific concerns, including deteriorating financial condition or bankruptcy;
|
•
|
the analysis of expected future cash flows of securities, based on quantitative and qualitative factors;
|
•
|
the analysis of the collectability of those future cash flows, including information about past
|
•
|
the analysis of the underlying collateral for MBS and ABS;
|
•
|
the analysis of individual impaired securities, including the anticipated recovery period and the magnitude of the overall price decline;
|
•
|
evaluation of factors or triggers that could cause individual securities to be deemed impaired and those that would not support impairment; and
|
•
|
documentation of the results of these analyses.
|
(In millions)
|
June 30, 2020
|
|
December 31, 2019
|
||||
Domestic(1):
|
|
|
|
||||
Commercial and financial:
|
|
|
|
||||
Fund Finance (2)
|
$
|
9,696
|
|
|
$
|
10,270
|
|
Leveraged loans
|
3,071
|
|
|
3,342
|
|
||
Overdrafts
|
2,292
|
|
|
1,739
|
|
||
Other(3)
|
2,450
|
|
|
3,411
|
|
||
Commercial real estate
|
1,944
|
|
|
1,766
|
|
||
Total domestic
|
19,453
|
|
|
20,528
|
|
||
Foreign(1):
|
|
|
|
||||
Commercial and financial:
|
|
|
|
||||
Fund Finance(2)
|
3,986
|
|
|
3,145
|
|
||
Leveraged loans
|
1,230
|
|
|
1,119
|
|
||
Overdrafts
|
2,163
|
|
|
1,517
|
|
||
Other(3)
|
28
|
|
|
—
|
|
||
Total foreign
|
7,407
|
|
|
5,781
|
|
||
Total loans
|
26,860
|
|
|
26,309
|
|
||
Allowance for loan losses
|
(141
|
)
|
|
(74
|
)
|
||
Loans, net of allowance
|
$
|
26,719
|
|
|
$
|
26,235
|
|
|
|
|
|
•
|
Investment Grade. Assets consisting of counterparties with strong credit quality and low expected credit risk and probability of default. Ratings apply to counterparties with a strong capacity to support the timely repayment of any financial commitment. Approximately 79% of our loans were rated as investment grade as of June 30, 2020 with external credit ratings, or equivalent, of "BBB-" or better.
|
•
|
Speculative. Assets consisting of counterparties that face ongoing uncertainties or exposure to business, financial or economic downturns. However, these counterparties may have financial flexibility or access to financial alternatives, which allow for financial commitments to be met. Assets rated as speculative, which is approximately 21% of our loans as of June 30, 2020, primarily comprises our leveraged loans. Approximately 83% of those leveraged loans have an external credit rating, or equivalent, of "BB" or "B" as of June 30, 2020.
|
•
|
Special Mention. Assets consisting of counterparties with potential weaknesses that, if uncorrected, may result in deterioration of repayment prospects.
|
•
|
Substandard. Assets consisting of counterparties with well-defined weakness that jeopardizes repayment with the possibility we will sustain some loss.
|
•
|
Doubtful. Assets consisting of counterparties with well-defined weakness which make collection or liquidation in full highly questionable and improbable.
|
•
|
Loss. Assets which are uncollectible or have little value.
|
June 30, 2020
|
Commercial and Financial
|
|
Commercial Real Estate
|
|
Total Loans
|
||||||
(In millions)
|
|||||||||||
Investment grade
|
$
|
19,413
|
|
|
$
|
1,777
|
|
|
$
|
21,190
|
|
Speculative
|
5,449
|
|
|
167
|
|
|
5,616
|
|
|||
Special mention
|
54
|
|
|
—
|
|
|
54
|
|
|||
Total(1)
|
$
|
24,916
|
|
|
$
|
1,944
|
|
|
$
|
26,860
|
|
December 31, 2019
|
Commercial and Financial
|
|
Commercial Real Estate
|
|
Total Loans
|
||||||
(In millions)
|
|||||||||||
Investment grade
|
$
|
19,501
|
|
|
$
|
1,766
|
|
|
$
|
21,267
|
|
Speculative
|
5,008
|
|
|
—
|
|
|
5,008
|
|
|||
Special mention
|
25
|
|
|
—
|
|
|
25
|
|
|||
Substandard
|
9
|
|
|
—
|
|
|
9
|
|
|||
Total(1)
|
$
|
24,543
|
|
|
$
|
1,766
|
|
|
$
|
26,309
|
|
|
|
|
(In millions)
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
Prior
|
|
Revolving Loans
|
|
Total(1)(2)
|
||||||||||||||||||
Domestic loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial and financial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk Rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Investment grade
|
$
|
2,478
|
|
|
$
|
438
|
|
|
$
|
5
|
|
|
$
|
120
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,465
|
|
|
$
|
13,506
|
|
Speculative
|
322
|
|
|
999
|
|
|
944
|
|
|
741
|
|
|
108
|
|
|
—
|
|
|
—
|
|
|
835
|
|
|
3,949
|
|
|||||||||
Special mention
|
—
|
|
|
—
|
|
|
29
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|||||||||
Total commercial and financing
|
$
|
2,800
|
|
|
$
|
1,437
|
|
|
$
|
978
|
|
|
$
|
886
|
|
|
$
|
108
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,300
|
|
|
$
|
17,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk Rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Investment grade
|
$
|
178
|
|
|
$
|
440
|
|
|
$
|
654
|
|
|
$
|
279
|
|
|
$
|
197
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,777
|
|
Speculative
|
—
|
|
|
110
|
|
|
57
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
167
|
|
|||||||||
Total commercial real estate
|
$
|
178
|
|
|
$
|
550
|
|
|
$
|
711
|
|
|
$
|
279
|
|
|
$
|
197
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-U.S. loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial and financial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk Rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Investment grade
|
$
|
2,001
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,906
|
|
|
$
|
5,907
|
|
Speculative
|
336
|
|
|
412
|
|
|
348
|
|
|
208
|
|
|
25
|
|
|
—
|
|
|
63
|
|
|
108
|
|
|
1,500
|
|
|||||||||
Total commercial and financing
|
$
|
2,337
|
|
|
$
|
412
|
|
|
$
|
348
|
|
|
$
|
208
|
|
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
63
|
|
|
$
|
4,014
|
|
|
$
|
7,407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total loans
|
$
|
5,315
|
|
|
$
|
2,399
|
|
|
$
|
2,037
|
|
|
$
|
1,373
|
|
|
$
|
330
|
|
|
$
|
29
|
|
|
$
|
63
|
|
|
$
|
15,314
|
|
|
$
|
26,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Off-balance sheet commitments and guarantees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Unfunded credit facilities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
33,126
|
|
|
$
|
33,126
|
|
Indemnified securities financing
|
367,214
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
367,214
|
|
|||||||||
Standby letters of credit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,246
|
|
|
3,246
|
|
|||||||||
Total off-balance sheet commitments and guarantees
|
$
|
367,214
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
36,372
|
|
|
$
|
403,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total financing receivables and off-balance sheet commitments and guarantees
|
$
|
372,529
|
|
|
$
|
2,399
|
|
|
$
|
2,037
|
|
|
$
|
1,373
|
|
|
$
|
330
|
|
|
$
|
29
|
|
|
$
|
63
|
|
|
$
|
51,686
|
|
|
$
|
430,446
|
|
|
|
|
Three Months Ended June 30, 2020
|
||||||||||||||||||||||
|
Commercial and Financial
|
|
|
|
|
|
|
|
|||||||||||||||
(In millions)
|
Leveraged Loans
|
|
Other Loans
|
|
Commercial Real Estate
|
|
Off-Balance Sheet Commitments
|
|
All Other (2)
|
|
Total Credit Reserve
|
||||||||||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
83
|
|
|
$
|
10
|
|
|
$
|
4
|
|
|
$
|
22
|
|
|
$
|
5
|
|
|
$
|
124
|
|
Charge-offs(1)
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
||||||
Provision
|
43
|
|
|
10
|
|
|
4
|
|
|
(4
|
)
|
|
(1
|
)
|
|
52
|
|
||||||
FX translation
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Ending balance
|
$
|
113
|
|
|
$
|
20
|
|
|
$
|
8
|
|
|
$
|
18
|
|
|
$
|
4
|
|
|
$
|
163
|
|
|
|
|
|
Six Months Ended June 30, 2020
|
||||||||||||||||||||||
|
Commercial and Financial
|
|
|
|
|
|
|
|
|||||||||||||||
(In millions)
|
Leveraged Loans
|
|
Other Loans
|
|
Commercial Real Estate
|
|
Off-Balance Sheet Commitments
|
|
All Other(2)
|
|
Total Credit Reserve
|
||||||||||||
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
61
|
|
|
$
|
10
|
|
|
$
|
2
|
|
|
$
|
19
|
|
|
$
|
1
|
|
|
$
|
93
|
|
Charge-offs(1)
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
||||||
Provision
|
70
|
|
|
10
|
|
|
6
|
|
|
(1
|
)
|
|
3
|
|
|
88
|
|
||||||
FX translation
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Ending balance
|
$
|
113
|
|
|
$
|
20
|
|
|
$
|
8
|
|
|
$
|
18
|
|
|
$
|
4
|
|
|
$
|
163
|
|
|
|
|
(In millions)
|
|
Three months ended June 30, 2019
|
||
Allowance for loan losses:
|
|
|
||
Beginning balance
|
|
$
|
70
|
|
Provision for credit losses(1)
|
|
1
|
|
|
Other(2)
|
|
1
|
|
|
Ending balance
|
|
$
|
72
|
|
|
|
|
||
(In millions)
|
|
Six months ended June 30, 2019
|
||
Allowance for loan losses:
|
|
|
||
Beginning balance
|
|
$
|
67
|
|
Provision for credit losses(1)
|
|
5
|
|
|
Ending balance
|
|
$
|
72
|
|
|
|
|
(In millions)
|
Investment
Servicing(1)
|
|
Investment
Management
|
|
Total
|
||||||
Goodwill:
|
|
|
|
|
|
||||||
Ending balance December 31, 2018
|
$
|
7,180
|
|
|
$
|
266
|
|
|
$
|
7,446
|
|
Acquisitions(2)
|
122
|
|
|
—
|
|
|
122
|
|
|||
Foreign currency translation
|
(13
|
)
|
|
1
|
|
|
(12
|
)
|
|||
Ending balance December 31, 2019
|
$
|
7,289
|
|
|
$
|
267
|
|
|
$
|
7,556
|
|
Foreign currency translation
|
(16
|
)
|
|
(2
|
)
|
|
(18
|
)
|
|||
Ending balance June 30, 2020
|
$
|
7,273
|
|
|
$
|
265
|
|
|
$
|
7,538
|
|
|
|
(In millions)
|
Investment
Servicing(1)
|
|
Investment
Management
|
|
Total
|
||||||
Other intangible assets:
|
|
|
|
|
|
||||||
Ending balance December 31, 2018
|
$
|
2,218
|
|
|
$
|
151
|
|
|
$
|
2,369
|
|
Acquisitions(2)
|
(93
|
)
|
|
—
|
|
|
(93
|
)
|
|||
Amortization
|
(207
|
)
|
|
(29
|
)
|
|
(236
|
)
|
|||
Foreign currency translation
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|||
Ending balance December 31, 2019
|
$
|
1,908
|
|
|
$
|
122
|
|
|
$
|
2,030
|
|
Amortization
|
(102
|
)
|
|
(14
|
)
|
|
(116
|
)
|
|||
Ending balance June 30, 2020
|
$
|
1,806
|
|
|
$
|
108
|
|
|
$
|
1,914
|
|
|
|
June 30, 2020
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net
Carrying Amount |
||||||
(In millions)
|
|
|
|||||||||
Other intangible assets:
|
|
|
|
|
|
||||||
Client relationships
|
$
|
2,639
|
|
|
$
|
(1,329
|
)
|
|
$
|
1,310
|
|
Technology
|
390
|
|
|
(92
|
)
|
|
298
|
|
|||
Core deposits
|
673
|
|
|
(398
|
)
|
|
275
|
|
|||
Other
|
100
|
|
|
(69
|
)
|
|
31
|
|
|||
Total
|
$
|
3,802
|
|
|
$
|
(1,888
|
)
|
|
$
|
1,914
|
|
|
|
|
|
|
|
||||||
December 31, 2019
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net
Carrying Amount |
||||||
(In millions)
|
|
|
|||||||||
Other intangible assets:
|
|
|
|
|
|
||||||
Client relationships
|
$
|
3,104
|
|
|
$
|
(1,718
|
)
|
|
$
|
1,386
|
|
Technology
|
403
|
|
|
(87
|
)
|
|
316
|
|
|||
Core deposits
|
673
|
|
|
(381
|
)
|
|
292
|
|
|||
Other
|
100
|
|
|
(64
|
)
|
|
36
|
|
|||
Total
|
$
|
4,280
|
|
|
$
|
(2,250
|
)
|
|
$
|
2,030
|
|
(In millions)
|
June 30, 2020
|
|
December 31, 2019
|
||||
Securities borrowed(1)
|
$
|
13,035
|
|
|
$
|
18,524
|
|
Derivative instruments, net
|
4,771
|
|
|
4,753
|
|
||
Bank-owned life insurance
|
3,442
|
|
|
3,395
|
|
||
Investments in joint ventures and other unconsolidated entities
|
2,696
|
|
|
2,899
|
|
||
Collateral, net
|
1,779
|
|
|
874
|
|
||
Receivable for securities settlement
|
1,368
|
|
|
336
|
|
||
Right-of-use assets
|
802
|
|
|
858
|
|
||
Accounts receivable
|
715
|
|
|
432
|
|
||
Prepaid expenses
|
446
|
|
|
395
|
|
||
Income taxes receivable
|
293
|
|
|
309
|
|
||
Deferred tax assets, net of valuation allowance(2)
|
199
|
|
|
216
|
|
||
Deposits with clearing organizations
|
58
|
|
|
58
|
|
||
Other(3)
|
891
|
|
|
962
|
|
||
Total
|
$
|
30,495
|
|
|
$
|
34,011
|
|
|
|
(In millions)
|
June 30, 2020
|
|
December 31, 2019
|
||||
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Interest-rate contracts:
|
|
|
|
||||
Futures
|
$
|
2,500
|
|
|
$
|
4,368
|
|
Foreign exchange contracts:
|
|
|
|
||||
Forward, swap and spot
|
2,614,018
|
|
|
2,378,808
|
|
||
Options purchased
|
1,165
|
|
|
1,581
|
|
||
Options written
|
907
|
|
|
1,110
|
|
||
Futures
|
1,436
|
|
|
1,040
|
|
||
Other:
|
|
|
|
||||
Stable value contracts(1)
|
29,060
|
|
|
26,895
|
|
||
Deferred value awards(2)
|
426
|
|
|
389
|
|
||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Interest-rate contracts:
|
|
|
|
||||
Swap agreements
|
15,929
|
|
|
15,196
|
|
||
Foreign exchange contracts:
|
|
|
|
||||
Forward and swap
|
5,516
|
|
|
3,176
|
|
|
|
|
Fair Value
|
||||||||||||||
|
Derivative Assets(1)
|
|
Derivative Liabilities(2)
|
||||||||||||
(In millions)
|
June 30, 2020
|
|
December 31, 2019
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
$
|
15,974
|
|
|
$
|
15,140
|
|
|
$
|
15,547
|
|
|
$
|
15,054
|
|
Other derivative contracts
|
—
|
|
|
—
|
|
|
185
|
|
|
182
|
|
||||
Total
|
$
|
15,974
|
|
|
$
|
15,140
|
|
|
$
|
15,732
|
|
|
$
|
15,236
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
138
|
|
|
$
|
96
|
|
Interest-rate contracts
|
51
|
|
|
8
|
|
|
56
|
|
|
49
|
|
||||
Total
|
$
|
67
|
|
|
$
|
8
|
|
|
$
|
194
|
|
|
$
|
145
|
|
|
|
|
Location of Gain (Loss) on Derivative in Consolidated Statement of Income
|
Amount of Gain (Loss) on Derivative Recognized
in Consolidated Statement of Income
|
||||||||||||||
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(In millions)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
Foreign exchange trading services revenue
|
$
|
215
|
|
|
$
|
156
|
|
|
$
|
548
|
|
|
$
|
316
|
|
Foreign exchange contracts
|
Interest expense
|
17
|
|
|
(59
|
)
|
|
19
|
|
|
(98
|
)
|
||||
Interest rate contracts
|
Foreign exchange trading services revenue
|
—
|
|
|
—
|
|
|
3
|
|
|
(1
|
)
|
||||
Other derivative contracts
|
Compensation and employee benefits
|
(45
|
)
|
|
(46
|
)
|
|
(112
|
)
|
|
(120
|
)
|
||||
Total
|
|
$
|
187
|
|
|
$
|
51
|
|
|
$
|
458
|
|
|
$
|
97
|
|
|
June 30, 2020
|
||||||||||||||
|
Hedged Items Currently Designated
|
|
Hedged Items No Longer Designated(1)
|
||||||||||||
(In millions)
|
Carrying Amount of Assets and Liabilities
|
|
Cumulative Hedge Accounting Basis Adjustments
|
|
Carrying Amount of Assets and Liabilities
|
|
Cumulative Hedge Accounting Basis Adjustments
|
||||||||
Long-term debt
|
$
|
10,515
|
|
|
$
|
762
|
|
|
$
|
1,200
|
|
|
$
|
(2
|
)
|
Available-for-sale securities
|
873
|
|
|
55
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
11,388
|
|
|
$
|
817
|
|
|
$
|
1,200
|
|
|
$
|
(2
|
)
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2019
|
||||||||||||||
|
Hedged Items Currently Designated
|
|
Hedged Items No Longer Designated(1)
|
||||||||||||
(In millions)
|
Carrying Amount of Assets and Liabilities
|
|
Cumulative Hedge Accounting Basis Adjustments
|
|
Carrying Amount of Assets and Liabilities
|
|
Cumulative Hedge Accounting Basis Adjustments
|
||||||||
Long-term debt
|
$
|
9,769
|
|
|
$
|
164
|
|
|
$
|
1,199
|
|
|
$
|
(8
|
)
|
Available-for-sale securities
|
940
|
|
|
49
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
10,709
|
|
|
$
|
213
|
|
|
$
|
1,199
|
|
|
$
|
(8
|
)
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
|
|
Three Months Ended June 30,
|
||||||||||||
|
|
|
2020
|
|
2019
|
|
|
|
|
|
2020
|
|
2019
|
||||||||
(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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate contracts
|
Net interest income
|
|
$
|
3
|
|
|
$
|
(8
|
)
|
|
Available-for-sale securities(1)
|
|
Net interest income
|
|
$
|
(4
|
)
|
|
$
|
7
|
|
Interest rate contracts
|
Net interest income
|
|
36
|
|
|
185
|
|
|
Long-term debt
|
|
Net interest income
|
|
(39
|
)
|
|
(183
|
)
|
||||
Total
|
|
|
$
|
39
|
|
|
$
|
177
|
|
|
|
|
|
|
$
|
(43
|
)
|
|
$
|
(176
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
|
2020
|
|
2019
|
|
|
|
|
|
2020
|
|
2019
|
||||||||
(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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate contracts
|
Net interest income
|
|
(8
|
)
|
|
(11
|
)
|
|
Available-for-sale securities(2)
|
|
Net interest income
|
|
6
|
|
|
11
|
|
||||
Interest rate contracts
|
Net interest income
|
|
583
|
|
|
291
|
|
|
Long-term debt
|
|
Net interest income
|
|
(574
|
)
|
|
(285
|
)
|
||||
Total
|
|
|
$
|
575
|
|
|
$
|
280
|
|
|
|
|
|
|
$
|
(568
|
)
|
|
$
|
(274
|
)
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
Three Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
|
|
2020
|
|
2019
|
||||||||
(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
|
$
|
21
|
|
|
$
|
21
|
|
|
Net interest income
|
|
$
|
14
|
|
|
$
|
(2
|
)
|
Foreign exchange contracts
|
9
|
|
|
(15
|
)
|
|
Net interest income
|
|
7
|
|
|
7
|
|
||||
Total derivatives designated as cash flow hedges
|
$
|
30
|
|
|
$
|
6
|
|
|
|
|
$
|
21
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives designated as net investment hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
$
|
(86
|
)
|
|
$
|
(2
|
)
|
|
Gains (Losses) related to investment securities, net
|
|
$
|
—
|
|
|
$
|
—
|
|
Total derivatives designated as net investment hedges
|
(86
|
)
|
|
(2
|
)
|
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
(56
|
)
|
|
$
|
4
|
|
|
|
|
$
|
21
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
|
|
2020
|
|
2019
|
||||||||
(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
|
$
|
179
|
|
|
$
|
31
|
|
|
Net interest income
|
|
$
|
14
|
|
|
$
|
(4
|
)
|
Foreign exchange contracts
|
19
|
|
|
12
|
|
|
Net interest income
|
|
14
|
|
|
14
|
|
||||
Total derivatives designated as cash flow hedges
|
$
|
198
|
|
|
$
|
43
|
|
|
|
|
$
|
28
|
|
|
$
|
10
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives designated as net investment hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
$
|
22
|
|
|
$
|
18
|
|
|
Gains (losses) related to investment securities, net
|
|
$
|
—
|
|
|
$
|
—
|
|
Total derivatives designated as net investment hedges
|
22
|
|
|
18
|
|
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
220
|
|
|
$
|
61
|
|
|
|
|
$
|
28
|
|
|
$
|
10
|
|
Assets:
|
June 30, 2020
|
||||||||||||||||||
|
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
|
$
|
15,990
|
|
|
$
|
(9,285
|
)
|
|
$
|
6,705
|
|
|
$
|
—
|
|
|
$
|
6,705
|
|
Interest rate contracts(6)
|
51
|
|
|
(16
|
)
|
|
35
|
|
|
—
|
|
|
35
|
|
|||||
Cash collateral and securities netting
|
NA
|
|
|
(1,969
|
)
|
|
(1,969
|
)
|
|
(451
|
)
|
|
(2,420
|
)
|
|||||
Total derivatives
|
16,041
|
|
|
(11,270
|
)
|
|
4,771
|
|
|
(451
|
)
|
|
4,320
|
|
|||||
Other financial instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Resale agreements and securities borrowing(7)(8)
|
97,012
|
|
|
(79,951
|
)
|
|
17,061
|
|
|
(15,367
|
)
|
|
1,694
|
|
|||||
Total derivatives and other financial instruments
|
$
|
113,053
|
|
|
$
|
(91,221
|
)
|
|
$
|
21,832
|
|
|
$
|
(15,818
|
)
|
|
$
|
6,014
|
|
Assets:
|
December 31, 2019
|
||||||||||||||||||
|
Gross Amounts of Recognized
Assets(1)(2)
|
|
Gross Amounts Offset in Statement of Condition(3)
|
|
Net Amounts of Assets Presented in Statement of Condition
|
|
Gross Amounts Not Offset in Statement of Condition
|
||||||||||||
(In millions)
|
|
|
|
Cash and Securities Received(4)
|
|
Net Amount(5)
|
|||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts
|
$
|
15,140
|
|
|
$
|
(8,081
|
)
|
|
$
|
7,059
|
|
|
$
|
—
|
|
|
$
|
7,059
|
|
Interest rate contracts(6)
|
8
|
|
|
(4
|
)
|
|
4
|
|
|
—
|
|
|
4
|
|
|||||
Cash collateral and securities netting
|
NA
|
|
|
(2,310
|
)
|
|
(2,310
|
)
|
|
(685
|
)
|
|
(2,995
|
)
|
|||||
Total derivatives
|
15,148
|
|
|
(10,395
|
)
|
|
4,753
|
|
|
(685
|
)
|
|
4,068
|
|
|||||
Other financial instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Resale agreements and securities borrowing(7)(8)
|
179,989
|
|
|
(159,978
|
)
|
|
20,011
|
|
|
(19,572
|
)
|
|
439
|
|
|||||
Total derivatives and other financial instruments
|
$
|
195,137
|
|
|
$
|
(170,373
|
)
|
|
$
|
24,764
|
|
|
$
|
(20,257
|
)
|
|
$
|
4,507
|
|
|
|
|
|
|
Liabilities:
|
June 30, 2020
|
||||||||||||||||||
|
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
|
$
|
15,685
|
|
|
$
|
(9,285
|
)
|
|
$
|
6,400
|
|
|
$
|
—
|
|
|
$
|
6,400
|
|
Interest rate contracts(6)
|
56
|
|
|
(16
|
)
|
|
40
|
|
|
—
|
|
|
40
|
|
|||||
Other derivative contracts
|
185
|
|
|
—
|
|
|
185
|
|
|
—
|
|
|
185
|
|
|||||
Cash collateral and securities netting
|
NA
|
|
|
(1,546
|
)
|
|
(1,546
|
)
|
|
(571
|
)
|
|
(2,117
|
)
|
|||||
Total derivatives
|
15,926
|
|
|
(10,847
|
)
|
|
5,079
|
|
|
(571
|
)
|
|
4,508
|
|
|||||
Other financial instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase agreements and securities lending(7)(8)
|
89,465
|
|
|
(79,951
|
)
|
|
9,514
|
|
|
(8,036
|
)
|
|
1,478
|
|
|||||
Total derivatives and other financial instruments
|
$
|
105,391
|
|
|
$
|
(90,798
|
)
|
|
$
|
14,593
|
|
|
$
|
(8,607
|
)
|
|
$
|
5,986
|
|
Liabilities:
|
December 31, 2019
|
||||||||||||||||||
|
Gross Amounts of Recognized Liabilities(1)(2)
|
|
Gross Amounts Offset in Statement of Condition(3)
|
|
Net Amounts of Liabilities Presented in Statement of Condition
|
|
Gross Amounts Not Offset in Statement of Condition
|
||||||||||||
(In millions)
|
|
|
|
Cash and Securities Received(4)
|
|
Net Amount(5)
|
|||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts
|
$
|
15,150
|
|
|
$
|
(8,081
|
)
|
|
$
|
7,069
|
|
|
$
|
—
|
|
|
$
|
7,069
|
|
Interest rate contracts(6)
|
49
|
|
|
(4
|
)
|
|
45
|
|
|
—
|
|
|
45
|
|
|||||
Other derivative contracts
|
182
|
|
|
—
|
|
|
182
|
|
|
—
|
|
|
182
|
|
|||||
Cash collateral and securities netting
|
NA
|
|
|
(837
|
)
|
|
(837
|
)
|
|
(557
|
)
|
|
(1,394
|
)
|
|||||
Total derivatives
|
15,381
|
|
|
(8,922
|
)
|
|
6,459
|
|
|
(557
|
)
|
|
5,902
|
|
|||||
Other financial instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase agreements and securities lending(7)(8)
|
171,853
|
|
|
(159,977
|
)
|
|
11,876
|
|
|
(10,793
|
)
|
|
1,083
|
|
|||||
Total derivatives and other financial instruments
|
$
|
187,234
|
|
|
$
|
(168,899
|
)
|
|
$
|
18,335
|
|
|
$
|
(11,350
|
)
|
|
$
|
6,985
|
|
|
|
|
|
|
|
As of June 30, 2020
|
|
As of December 31, 2019
|
||||||||||||||||||||||||||||
(In millions)
|
Overnight and Continuous
|
|
Up to 30 Days
|
|
Greater than 90 Days
|
|
Total
|
|
Overnight and Continuous
|
|
Up to 30 Days
|
|
Greater than 90 Days
|
|
Total
|
||||||||||||||||
Repurchase agreements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury and agency securities
|
$
|
79,585
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
79,585
|
|
|
$
|
156,465
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
156,465
|
|
Total
|
79,585
|
|
|
—
|
|
|
—
|
|
|
79,585
|
|
|
156,465
|
|
|
—
|
|
|
—
|
|
|
156,465
|
|
||||||||
Securities lending transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
US Treasury and agency securities
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
||||||||
Corporate debt securities
|
143
|
|
|
—
|
|
|
—
|
|
|
143
|
|
|
354
|
|
|
—
|
|
|
—
|
|
|
354
|
|
||||||||
Equity securities
|
6,509
|
|
|
35
|
|
|
668
|
|
|
7,212
|
|
|
7,389
|
|
|
—
|
|
|
130
|
|
|
7,519
|
|
||||||||
Other(1)
|
2,502
|
|
|
—
|
|
|
—
|
|
|
2,502
|
|
|
7,500
|
|
|
—
|
|
|
—
|
|
|
7,500
|
|
||||||||
Total
|
9,177
|
|
|
35
|
|
|
668
|
|
|
9,880
|
|
|
15,258
|
|
|
—
|
|
|
130
|
|
|
15,388
|
|
||||||||
Gross amount of recognized liabilities for repurchase agreements and securities lending
|
$
|
88,762
|
|
|
$
|
35
|
|
|
$
|
668
|
|
|
$
|
89,465
|
|
|
$
|
171,723
|
|
|
$
|
—
|
|
|
$
|
130
|
|
|
$
|
171,853
|
|
|
|
|
|
|
(In millions)
|
June 30, 2020
|
|
December 31, 2019
|
||||
Commitments:
|
|
|
|
||||
Unfunded credit facilities(1)
|
$
|
33,126
|
|
|
$
|
29,697
|
|
Guarantees(2):
|
|
|
|
||||
Indemnified securities financing
|
$
|
367,214
|
|
|
$
|
367,901
|
|
Standby letters of credit
|
3,246
|
|
|
3,324
|
|
|
|
(In millions)
|
June 30, 2020
|
|
December 31, 2019
|
||||
Fair value of indemnified securities financing
|
$
|
367,214
|
|
|
$
|
367,901
|
|
Fair value of cash and securities held by us, as agent, as collateral for indemnified securities financing
|
384,761
|
|
|
385,428
|
|
||
Fair value of collateral for indemnified securities financing invested in indemnified repurchase agreements
|
53,273
|
|
|
45,658
|
|
||
Fair value of cash and securities held by us or our agents as collateral for investments in indemnified repurchase agreements
|
56,829
|
|
|
48,887
|
|
Preferred Stock(2):
|
Issuance Date
|
|
Depositary Shares Issued
|
|
Ownership Interest Per Depositary Share
|
|
Liquidation Preference Per Share
|
|
Liquidation Preference Per Depositary Share
|
|
Per Annum Dividend Rate
|
|
Dividend Payment Frequency
|
|
Carrying Value as of June 30, 2020
(In millions) |
|
Redemption Date(1)
|
||||||
Series D
|
February 2014
|
|
30,000,000
|
|
1/4,000th
|
|
$
|
100,000
|
|
|
$
|
25
|
|
|
5.90% to but excluding March 15, 2024, then a floating rate equal to the three-month LIBOR plus 3.108%
|
|
Quarterly
|
|
$
|
742
|
|
|
March 15, 2024
|
Series F
|
May 2015
|
|
750,000
|
|
1/100th
|
|
100,000
|
|
|
1,000
|
|
|
5.25% to but excluding September 15, 2020, then a floating rate equal to the three-month LIBOR plus 3.597%
|
|
Semi-annually
|
|
742
|
|
|
September 15, 2020
|
|||
Series G
|
April 2016
|
|
20,000,000
|
|
1/4,000th
|
|
100,000
|
|
|
25
|
|
|
5.35% to but excluding March 15, 2026, then a floating rate equal to the three-month LIBOR plus 3.709%
|
|
Quarterly
|
|
493
|
|
|
March 15, 2026
|
|||
Series H
|
September 2018
|
|
500,000
|
|
1/100th
|
|
100,000
|
|
|
1,000
|
|
|
5.625% to but excluding December 15, 2023, then a floating rate equal to the three-month LIBOR plus 2.539%
|
|
Semi-annually
|
|
494
|
|
|
December 15, 2023
|
|
|
|
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||||
|
Dividends Declared per Share
|
|
Dividends Declared per Depositary Share
|
|
Total
(In millions)(1)
|
|
Dividends Declared per Share
|
|
Dividends Declared per Depositary Share
|
|
Total
(In millions)
|
||||||||||||
Preferred Stock:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Series C(1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,313
|
|
|
$
|
0.33
|
|
|
$
|
7
|
|
Series D
|
1,475
|
|
|
0.37
|
|
|
11
|
|
|
1,475
|
|
|
0.37
|
|
|
11
|
|
||||||
Series E(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
1,500
|
|
|
0.38
|
|
|
11
|
|
||||||
Series F
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Series G
|
1,338
|
|
|
0.33
|
|
|
7
|
|
|
1,338
|
|
|
0.33
|
|
|
7
|
|
||||||
Series H
|
28.13
|
|
|
28.13
|
|
|
14
|
|
|
2,813
|
|
|
28.13
|
|
|
14
|
|
||||||
Total
|
|
|
|
|
$
|
32
|
|
|
|
|
|
|
$
|
50
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||||
(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(1)
|
$
|
1,313
|
|
|
$
|
0.33
|
|
|
$
|
6
|
|
|
$
|
2,626
|
|
|
$
|
0.66
|
|
|
$
|
13
|
|
Series D
|
2,950
|
|
|
0.74
|
|
|
22
|
|
|
2,950
|
|
|
0.74
|
|
|
22
|
|
||||||
Series E(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
3,000
|
|
|
0.76
|
|
|
22
|
|
||||||
Series F
|
2,625
|
|
|
26.25
|
|
|
20
|
|
|
2,625
|
|
|
26.25
|
|
|
20
|
|
||||||
Series G
|
2,676
|
|
|
0.66
|
|
|
14
|
|
|
2,676
|
|
|
0.66
|
|
|
14
|
|
||||||
Series H
|
2,813
|
|
|
28.13
|
|
|
14
|
|
|
2,813
|
|
|
28.13
|
|
|
14
|
|
||||||
Total
|
|
|
|
|
$
|
76
|
|
|
|
|
|
|
$
|
105
|
|
|
|
|
|
|
Three Months Ended June 30, 2020
|
|
Six Months Ended June 30, 2020
|
||||||||||||||||||
|
Shares Acquired
(In millions) |
|
Average Cost per Share
|
|
Total Acquired
(In millions) |
|
Shares Acquired
(In millions) |
|
Average Cost per Share
|
|
Total Acquired
(In millions) |
||||||||||
2019 Program
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
6.5
|
|
|
$
|
77.35
|
|
|
$
|
500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 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
|
4.6
|
|
$
|
65.25
|
|
|
$
|
300
|
|
|
8.8
|
|
|
$
|
67.97
|
|
|
$
|
600
|
|
|
Three Months Ended June 30,
|
||||||||||||||
|
2020
|
|
2019
|
||||||||||||
|
Dividends Declared per Share
|
|
Total
(In millions) |
|
Dividends Declared per Share
|
|
Total
(In millions) |
||||||||
Common Stock
|
$
|
0.52
|
|
|
$
|
183
|
|
|
$
|
0.47
|
|
|
$
|
175
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended June 30,
|
||||||||||||||
|
2020
|
|
2019
|
||||||||||||
|
Dividends Declared per Share
|
|
Total
(In millions) |
|
Dividends Declared per Share
|
|
Total
(In millions) |
||||||||
Common Stock
|
$
|
1.04
|
|
|
$
|
366
|
|
|
$
|
0.94
|
|
|
$
|
352
|
|
|
Six Months Ended June 30,
|
||||||
(In millions)
|
2020
|
|
2019
|
||||
Net unrealized (losses) on cash flow hedges
|
$
|
53
|
|
|
$
|
(70
|
)
|
Net unrealized gains on available-for-sale securities portfolio
|
899
|
|
|
372
|
|
||
Net unrealized gains related to reclassified available-for-sale securities
|
7
|
|
|
57
|
|
||
Net unrealized gains on available-for-sale securities
|
906
|
|
|
429
|
|
||
Net unrealized (losses) on available-for-sale securities designated in fair value hedges
|
(40
|
)
|
|
(51
|
)
|
||
Net unrealized gains on hedges of net investments in non-U.S. subsidiaries
|
68
|
|
|
34
|
|
||
Non-credit impairment on held-to-maturity securities previously identified under ASC 320
|
(2
|
)
|
|
(2
|
)
|
||
Net unrealized (losses) on retirement plans
|
(173
|
)
|
|
(179
|
)
|
||
Foreign currency translation
|
(1,242
|
)
|
|
(1,035
|
)
|
||
Total
|
$
|
(430
|
)
|
|
$
|
(874
|
)
|
(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
|
|
Non-credit Impairment on Held-to-Maturity Securities
|
|
Net Unrealized Losses on Retirement Plans
|
|
Foreign Currency Translation
|
|
Total
|
||||||||||||||
Balance as of December 31, 2019
|
$
|
(70
|
)
|
|
$
|
409
|
|
|
$
|
46
|
|
|
$
|
(2
|
)
|
|
$
|
(187
|
)
|
|
$
|
(1,072
|
)
|
|
$
|
(876
|
)
|
Other comprehensive income (loss) before reclassifications
|
103
|
|
|
456
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
(170
|
)
|
|
411
|
|
|||||||
Amounts reclassified into (out of) earnings
|
20
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
35
|
|
|||||||
Other comprehensive income (loss)
|
123
|
|
|
457
|
|
|
22
|
|
|
—
|
|
|
14
|
|
|
(170
|
)
|
|
446
|
|
|||||||
Balance as of June 30, 2020
|
$
|
53
|
|
|
$
|
866
|
|
|
$
|
68
|
|
|
$
|
(2
|
)
|
|
$
|
(173
|
)
|
|
$
|
(1,242
|
)
|
|
$
|
(430
|
)
|
(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
|
18
|
|
|
532
|
|
|
21
|
|
|
2
|
|
|
—
|
|
|
(5
|
)
|
|
568
|
|
|||||||
Reclassification of certain tax effects(1)
|
(6
|
)
|
|
21
|
|
|
(3
|
)
|
|
(1
|
)
|
|
(28
|
)
|
|
(67
|
)
|
|
(84
|
)
|
|||||||
Amounts reclassified into (out of) earnings
|
7
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(8
|
)
|
|
—
|
|
|
(2
|
)
|
|||||||
Other comprehensive income (loss)
|
19
|
|
|
553
|
|
|
18
|
|
|
—
|
|
|
(36
|
)
|
|
(72
|
)
|
|
482
|
|
|||||||
Balance as of June 30, 2019
|
$
|
(70
|
)
|
|
$
|
378
|
|
|
$
|
34
|
|
|
$
|
(2
|
)
|
|
$
|
(179
|
)
|
|
$
|
(1,035
|
)
|
|
$
|
(874
|
)
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
||||||
|
2020
|
|
2019
|
|
|
||||
(In millions)
|
Amounts Reclassified into
(out of) Earnings |
|
Affected Line Item in Consolidated Statement of Income
|
||||||
Available-for-sale securities:
|
|
|
|
|
|
||||
Net realized gains from sales of available-for-sale securities, net of related taxes of zero and zero, respectively
|
$
|
—
|
|
|
$
|
—
|
|
|
Net gains (losses) from sales of available-for-sale securities
|
Cash flow hedges:
|
|
|
|
|
|
||||
Gain reclassified from accumulated other comprehensive income into Income, net of related taxes of $5 and $1
|
15
|
|
|
4
|
|
|
Net interest income reclassified from other comprehensive income
|
||
Retirement plans:
|
|
|
|
|
|
||||
Amortization of actuarial losses, net of related taxes of zero and zero, respectively
|
2
|
|
|
—
|
|
|
Compensation and employee benefits expenses
|
||
Total reclassifications into AOCI
|
$
|
17
|
|
|
$
|
4
|
|
|
|
|
|
|
|
|
|
||||
|
Six Months Ended June 30,
|
|
|
||||||
|
2020
|
|
2019
|
|
|
||||
(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 $1 and zero, respectively
|
$
|
1
|
|
|
$
|
—
|
|
|
Net gains (losses) from sales of available-for-sale securities
|
Held-to-maturity securities:
|
|
|
|
|
|
||||
Non-credit impairment on held-to-maturity securities previously identified under ASC 320, net of related taxes of zero and zero, respectively(1)
|
—
|
|
|
(1
|
)
|
|
Losses reclassified (from) to other comprehensive income
|
||
Cash flow hedges:
|
|
|
|
|
|
||||
Gain reclassified from accumulated other comprehensive income into Income, net of related taxes of $7 and $3
|
20
|
|
|
7
|
|
|
Net interest income reclassified from other comprehensive income
|
||
Retirement plans:
|
|
|
|
|
|
||||
Amortization of actuarial losses, net of related taxes of $4 and ($4), respectively
|
14
|
|
|
(8
|
)
|
|
Compensation and employee benefits expenses
|
||
Total reclassifications (into) out of Accumulated other comprehensive loss
|
$
|
35
|
|
|
$
|
(2
|
)
|
|
|
|
|
|
|
|
|
State Street Corporation
|
|
State Street Bank
|
||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Basel III Advanced Approaches June 30, 2020
|
|
Basel III Standardized Approach June 30, 2020
|
|
Basel III Advanced Approaches December 31, 2019
|
|
Basel III Standardized Approach December 31, 2019
|
|
Basel III Advanced Approaches June 30, 2020
|
|
Basel III Standardized Approach June 30, 2020
|
|
Basel III Advanced Approaches December 31, 2019
|
|
Basel III Standardized Approach December 31, 2019
|
||||||||||||||||||||
Common shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Common stock and related surplus
|
$
|
10,683
|
|
|
$
|
10,683
|
|
|
$
|
10,636
|
|
|
$
|
10,636
|
|
|
$
|
12,893
|
|
|
$
|
12,893
|
|
|
$
|
12,893
|
|
|
$
|
12,893
|
|
||||
Retained earnings
|
22,794
|
|
|
22,794
|
|
|
21,918
|
|
|
21,918
|
|
|
13,103
|
|
|
13,103
|
|
|
13,218
|
|
|
13,218
|
|
||||||||||||
Accumulated other comprehensive income (loss)
|
(430
|
)
|
|
(430
|
)
|
|
(870
|
)
|
|
(870
|
)
|
|
(174
|
)
|
|
(174
|
)
|
|
(654
|
)
|
|
(654
|
)
|
||||||||||||
Treasury stock, at cost
|
(10,645
|
)
|
|
(10,645
|
)
|
|
(10,209
|
)
|
|
(10,209
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||
Total
|
22,402
|
|
|
22,402
|
|
|
21,475
|
|
|
21,475
|
|
|
25,822
|
|
|
25,822
|
|
|
25,457
|
|
|
25,457
|
|
||||||||||||
Regulatory capital adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Goodwill and other intangible assets, net of associated deferred tax liabilities
|
(8,973
|
)
|
|
(8,973
|
)
|
|
(9,112
|
)
|
|
(9,112
|
)
|
|
(8,705
|
)
|
|
(8,705
|
)
|
|
(8,839
|
)
|
|
(8,839
|
)
|
||||||||||||
Other adjustments(1)
|
(261
|
)
|
|
(261
|
)
|
|
(150
|
)
|
|
(150
|
)
|
|
(119
|
)
|
|
(119
|
)
|
|
(1
|
)
|
|
(1
|
)
|
||||||||||||
Common equity tier 1 capital
|
13,168
|
|
|
13,168
|
|
|
12,213
|
|
|
12,213
|
|
|
16,998
|
|
|
16,998
|
|
|
16,617
|
|
|
16,617
|
|
||||||||||||
Preferred stock
|
2,471
|
|
|
2,471
|
|
|
2,962
|
|
|
2,962
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||
Tier 1 capital
|
15,639
|
|
|
15,639
|
|
|
15,175
|
|
|
15,175
|
|
|
16,998
|
|
|
16,998
|
|
|
16,617
|
|
|
16,617
|
|
||||||||||||
Qualifying subordinated long-term debt
|
964
|
|
|
964
|
|
|
1,095
|
|
|
1,095
|
|
|
969
|
|
|
969
|
|
|
1,099
|
|
|
1,099
|
|
||||||||||||
Allowance for credit losses
|
47
|
|
|
163
|
|
|
5
|
|
|
90
|
|
|
55
|
|
|
163
|
|
|
3
|
|
|
90
|
|
||||||||||||
Total capital
|
$
|
16,650
|
|
|
$
|
16,766
|
|
|
$
|
16,275
|
|
|
$
|
16,360
|
|
|
$
|
18,022
|
|
|
$
|
18,130
|
|
|
$
|
17,719
|
|
|
$
|
17,806
|
|
||||
Risk-weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Credit risk(2)
|
$
|
57,975
|
|
|
$
|
105,276
|
|
|
$
|
54,763
|
|
|
$
|
102,367
|
|
|
$
|
54,016
|
|
|
$
|
101,462
|
|
|
$
|
51,610
|
|
|
$
|
98,979
|
|
||||
Operational risk(3)
|
44,225
|
|
|
NA
|
|
|
47,963
|
|
|
NA
|
|
|
43,738
|
|
|
NA
|
|
|
44,138
|
|
|
NA
|
|
||||||||||||
Market risk
|
1,563
|
|
|
1,563
|
|
|
1,638
|
|
|
1,638
|
|
|
1,563
|
|
|
1,563
|
|
|
1,638
|
|
|
1,638
|
|
||||||||||||
Total risk-weighted assets
|
$
|
103,763
|
|
|
$
|
106,839
|
|
|
$
|
104,364
|
|
|
$
|
104,005
|
|
|
$
|
99,317
|
|
|
$
|
103,025
|
|
|
$
|
97,386
|
|
|
$
|
100,617
|
|
||||
Adjusted quarterly average assets
|
$
|
256,418
|
|
|
$
|
256,418
|
|
|
$
|
219,624
|
|
|
$
|
219,624
|
|
|
$
|
252,725
|
|
|
$
|
252,725
|
|
|
$
|
216,397
|
|
|
$
|
216,397
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Capital Ratios:
|
2020 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge
|
2019 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Common equity tier 1 capital
|
8.0
|
%
|
8.5
|
%
|
12.7
|
%
|
|
12.3
|
%
|
|
11.7
|
%
|
|
11.7
|
%
|
|
17.1
|
%
|
|
16.5
|
%
|
|
17.1
|
%
|
|
16.5
|
%
|
||||||||
Tier 1 capital
|
9.5
|
|
10.0
|
|
15.1
|
|
|
14.6
|
|
|
14.5
|
|
|
14.6
|
|
|
17.1
|
|
|
16.5
|
|
|
17.1
|
|
|
16.5
|
|
||||||||
Total capital
|
11.5
|
|
12.0
|
|
16.0
|
|
|
15.7
|
|
|
15.6
|
|
|
15.7
|
|
|
18.1
|
|
|
17.6
|
|
|
18.2
|
|
|
17.7
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(In millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Interest income:
|
|
|
|
|
|
|
|
||||||||
Interest-bearing deposits with banks
|
$
|
4
|
|
|
$
|
109
|
|
|
$
|
85
|
|
|
$
|
228
|
|
Investment securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and federal agencies
|
315
|
|
|
360
|
|
|
671
|
|
|
729
|
|
||||
State and political subdivisions
|
9
|
|
|
13
|
|
|
20
|
|
|
25
|
|
||||
Other investments
|
92
|
|
|
126
|
|
|
209
|
|
|
248
|
|
||||
Investment securities purchased under money market liquidity facility
|
70
|
|
|
—
|
|
|
78
|
|
|
—
|
|
||||
Total investment securities
|
486
|
|
|
499
|
|
|
978
|
|
|
1,002
|
|
||||
Securities purchased under resale agreements
|
24
|
|
|
90
|
|
|
89
|
|
|
188
|
|
||||
Loans
|
156
|
|
|
195
|
|
|
340
|
|
|
393
|
|
||||
Other interest-earning assets
|
4
|
|
|
114
|
|
|
50
|
|
|
223
|
|
||||
Total interest income
|
674
|
|
|
1,007
|
|
|
1,542
|
|
|
2,034
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
||||||||
Interest-bearing deposits
|
(54
|
)
|
|
209
|
|
|
14
|
|
|
380
|
|
||||
Investment securities purchased under money market liquidity facility
|
58
|
|
|
—
|
|
|
64
|
|
|
—
|
|
||||
Securities sold under repurchase agreements
|
1
|
|
|
8
|
|
|
3
|
|
|
20
|
|
||||
Other short-term borrowings
|
5
|
|
|
6
|
|
|
15
|
|
|
10
|
|
||||
Long-term debt
|
95
|
|
|
107
|
|
|
183
|
|
|
213
|
|
||||
Other interest-bearing liabilities
|
10
|
|
|
64
|
|
|
40
|
|
|
125
|
|
||||
Total interest expense
|
115
|
|
|
394
|
|
|
319
|
|
|
748
|
|
||||
Net interest income
|
$
|
559
|
|
|
$
|
613
|
|
|
$
|
1,223
|
|
|
$
|
1,286
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(In millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Professional services
|
$
|
91
|
|
|
$
|
85
|
|
|
$
|
172
|
|
|
$
|
165
|
|
Regulatory fees and assessments
|
17
|
|
|
16
|
|
|
29
|
|
|
36
|
|
||||
Securities processing
|
15
|
|
|
19
|
|
|
30
|
|
|
28
|
|
||||
Sales advertising public relations
|
12
|
|
|
27
|
|
|
30
|
|
|
54
|
|
||||
Bank operations
|
4
|
|
|
10
|
|
|
13
|
|
|
21
|
|
||||
Insurance
|
3
|
|
|
4
|
|
|
8
|
|
|
9
|
|
||||
Other
|
101
|
|
|
113
|
|
|
191
|
|
|
236
|
|
||||
Total other expenses
|
$
|
243
|
|
|
$
|
274
|
|
|
$
|
473
|
|
|
$
|
549
|
|
(In millions)
|
Employee
Related Costs |
|
Real Estate
Actions |
|
Asset and Other Write-offs
|
|
Total
|
||||||||
Accrual Balance at December 31, 2018
|
$
|
303
|
|
|
$
|
37
|
|
|
$
|
1
|
|
|
$
|
341
|
|
Accruals for Beacon
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||
Accruals for Repositioning Charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
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
|
|
Accrual balance at December 31, 2019
|
$
|
190
|
|
|
$
|
7
|
|
|
$
|
1
|
|
|
$
|
198
|
|
Payments and Other Adjustments
|
(33
|
)
|
|
(1
|
)
|
|
—
|
|
|
(34
|
)
|
||||
Accrual Balance at March 31, 2020
|
$
|
157
|
|
|
$
|
6
|
|
|
$
|
1
|
|
|
$
|
164
|
|
Payments and Other Adjustments
|
(25
|
)
|
|
(1
|
)
|
|
—
|
|
|
(26
|
)
|
||||
Accrual Balance at June 30, 2020
|
$
|
132
|
|
|
$
|
5
|
|
|
$
|
1
|
|
|
$
|
138
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Dollars in millions, except per share amounts)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net income
|
$
|
694
|
|
|
$
|
587
|
|
|
$
|
1,328
|
|
|
$
|
1,095
|
|
Less:
|
|
|
|
|
|
|
|
||||||||
Preferred stock dividends
|
(32
|
)
|
|
(50
|
)
|
|
(85
|
)
|
|
(105
|
)
|
||||
Dividends and undistributed earnings allocated to participating securities(1)
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Net income available to common shareholders
|
$
|
662
|
|
|
$
|
537
|
|
|
$
|
1,242
|
|
|
$
|
989
|
|
Average common shares outstanding (In thousands):
|
|
|
|
|
|
|
|
||||||||
Basic average common shares
|
352,157
|
|
|
373,773
|
|
|
352,952
|
|
|
375,832
|
|
||||
Effect of dilutive securities: equity-based awards
|
4,256
|
|
|
3,804
|
|
|
4,076
|
|
|
3,633
|
|
||||
Diluted average common shares
|
356,413
|
|
|
377,577
|
|
|
357,028
|
|
|
379,465
|
|
||||
Anti-dilutive securities(2)
|
2,989
|
|
|
3,345
|
|
|
1,580
|
|
|
2,665
|
|
||||
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.88
|
|
|
$
|
1.44
|
|
|
$
|
3.52
|
|
|
$
|
2.63
|
|
Diluted(3)
|
1.86
|
|
|
1.42
|
|
|
3.48
|
|
|
2.61
|
|
|
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||||||||||
|
Investment
Servicing |
|
Investment
Management |
|
Other
|
|
Total
|
||||||||||||||||||||||||
(Dollars in millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||||||||
Servicing fees
|
$
|
1,272
|
|
|
$
|
1,252
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,272
|
|
|
$
|
1,252
|
|
Management fees
|
—
|
|
|
—
|
|
|
425
|
|
|
441
|
|
|
—
|
|
|
—
|
|
|
425
|
|
|
441
|
|
||||||||
Foreign exchange trading services
|
312
|
|
|
240
|
|
|
32
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
344
|
|
|
273
|
|
||||||||
Securities finance
|
88
|
|
|
122
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
92
|
|
|
126
|
|
||||||||
Software and processing fees
|
229
|
|
|
163
|
|
|
16
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
245
|
|
|
168
|
|
||||||||
Total fee revenue
|
1,901
|
|
|
1,777
|
|
|
477
|
|
|
483
|
|
|
—
|
|
|
—
|
|
|
2,378
|
|
|
2,260
|
|
||||||||
Net interest income
|
571
|
|
|
623
|
|
|
(12
|
)
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
559
|
|
|
613
|
|
||||||||
Total revenue
|
2,472
|
|
|
2,400
|
|
|
465
|
|
|
473
|
|
|
—
|
|
|
—
|
|
|
2,937
|
|
|
2,873
|
|
||||||||
Provision for loan losses
|
52
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
1
|
|
||||||||
Total expenses
|
1,717
|
|
|
1,765
|
|
|
353
|
|
|
377
|
|
|
12
|
|
|
12
|
|
|
2,082
|
|
|
2,154
|
|
||||||||
Income before income tax expense
|
$
|
703
|
|
|
$
|
634
|
|
|
$
|
112
|
|
|
$
|
96
|
|
|
$
|
(12
|
)
|
|
$
|
(12
|
)
|
|
$
|
803
|
|
|
$
|
718
|
|
Pre-tax margin
|
28
|
%
|
|
26
|
%
|
|
24
|
%
|
|
20
|
%
|
|
|
|
|
|
27
|
%
|
|
25
|
%
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||||||||
|
Investment
Servicing |
|
Investment
Management |
|
Other
|
|
Total
|
||||||||||||||||||||||||
(Dollars in millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||||||||
Servicing fees
|
$
|
2,559
|
|
|
$
|
2,503
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,559
|
|
|
$
|
2,503
|
|
Management fees
|
—
|
|
|
—
|
|
|
874
|
|
|
861
|
|
|
—
|
|
|
—
|
|
|
874
|
|
|
861
|
|
||||||||
Foreign exchange trading services
|
746
|
|
|
486
|
|
|
57
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
803
|
|
|
553
|
|
||||||||
Securities finance
|
177
|
|
|
239
|
|
|
7
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
184
|
|
|
244
|
|
||||||||
Software and processing fees
|
366
|
|
|
343
|
|
|
(9
|
)
|
|
16
|
|
|
—
|
|
|
—
|
|
|
357
|
|
|
359
|
|
||||||||
Total fee revenue
|
3,848
|
|
|
3,571
|
|
|
929
|
|
|
949
|
|
|
—
|
|
|
—
|
|
|
4,777
|
|
|
4,520
|
|
||||||||
Net interest income
|
1,234
|
|
|
1,302
|
|
|
(11
|
)
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
1,223
|
|
|
1,286
|
|
||||||||
Total other income
|
2
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(1
|
)
|
||||||||
Total revenue
|
5,084
|
|
|
4,872
|
|
|
918
|
|
|
933
|
|
|
—
|
|
|
—
|
|
|
6,002
|
|
|
5,805
|
|
||||||||
Provision for credit losses
|
88
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
88
|
|
|
5
|
|
||||||||
Total expenses
|
3,576
|
|
|
3,629
|
|
|
738
|
|
|
783
|
|
|
23
|
|
|
35
|
|
|
4,337
|
|
|
4,447
|
|
||||||||
Income before income tax expense
|
$
|
1,420
|
|
|
$
|
1,238
|
|
|
$
|
180
|
|
|
$
|
150
|
|
|
$
|
(23
|
)
|
|
$
|
(35
|
)
|
|
$
|
1,577
|
|
|
$
|
1,353
|
|
Pre-tax margin
|
28
|
%
|
|
25
|
%
|
|
20
|
%
|
|
16
|
%
|
|
|
|
|
|
26
|
%
|
|
23
|
%
|
|
Three Months Ended June 30, 2020
|
||||||||||||||||||||||||||
|
Investment Servicing
|
|
Investment Management
|
|
Total
|
||||||||||||||||||||||
(Dollars in millions)
|
Topic 606 revenue
|
|
All other revenue
|
|
Total
|
|
Topic 606 revenue
|
|
All other revenue
|
|
Total
|
|
2020
|
||||||||||||||
Servicing fees
|
$
|
1,272
|
|
|
$
|
—
|
|
|
$
|
1,272
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,272
|
|
Management fees
|
—
|
|
|
—
|
|
|
—
|
|
|
425
|
|
|
—
|
|
|
425
|
|
|
425
|
|
|||||||
Foreign exchange trading services
|
95
|
|
|
217
|
|
|
312
|
|
|
32
|
|
|
—
|
|
|
32
|
|
|
344
|
|
|||||||
Securities finance
|
63
|
|
|
25
|
|
|
88
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
92
|
|
|||||||
Software and processing fees
|
151
|
|
|
78
|
|
|
229
|
|
|
—
|
|
|
16
|
|
|
16
|
|
|
245
|
|
|||||||
Total fee revenue
|
1,581
|
|
|
320
|
|
|
1,901
|
|
|
457
|
|
|
20
|
|
|
477
|
|
|
2,378
|
|
|||||||
Net interest income
|
—
|
|
|
571
|
|
|
571
|
|
|
—
|
|
|
(12
|
)
|
|
(12
|
)
|
|
559
|
|
|||||||
Total revenue
|
$
|
1,581
|
|
|
$
|
891
|
|
|
$
|
2,472
|
|
|
$
|
457
|
|
|
$
|
8
|
|
|
$
|
465
|
|
|
$
|
2,937
|
|
|
Six Months Ended June 30, 2020
|
||||||||||||||||||||||||||
|
Investment Servicing
|
|
Investment Management
|
|
Total
|
||||||||||||||||||||||
(Dollars in millions)
|
Topic 606 revenue
|
|
All other revenue
|
|
Total
|
|
Topic 606 revenue
|
|
All other revenue
|
|
Total
|
|
2020
|
||||||||||||||
Servicing fees
|
$
|
2,559
|
|
|
$
|
—
|
|
|
$
|
2,559
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,559
|
|
Management fees
|
—
|
|
|
—
|
|
|
—
|
|
|
874
|
|
|
—
|
|
|
874
|
|
|
874
|
|
|||||||
Foreign exchange trading services
|
195
|
|
|
551
|
|
|
746
|
|
|
57
|
|
|
—
|
|
|
57
|
|
|
803
|
|
|||||||
Securities finance
|
120
|
|
|
57
|
|
|
177
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
184
|
|
|||||||
Software and processing fees
|
258
|
|
|
108
|
|
|
366
|
|
|
—
|
|
|
(9
|
)
|
|
(9
|
)
|
|
357
|
|
|||||||
Total fee revenue
|
3,132
|
|
|
716
|
|
|
3,848
|
|
|
931
|
|
|
(2
|
)
|
|
929
|
|
|
4,777
|
|
|||||||
Net interest income
|
—
|
|
|
1,234
|
|
|
1,234
|
|
|
—
|
|
|
(11
|
)
|
|
(11
|
)
|
|
1,223
|
|
|||||||
Total other income
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||||
Total revenue
|
$
|
3,132
|
|
|
$
|
1,952
|
|
|
$
|
5,084
|
|
|
$
|
931
|
|
|
$
|
(13
|
)
|
|
$
|
918
|
|
|
$
|
6,002
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||||||
|
Investment Servicing
|
|
Investment Management
|
|
Total
|
||||||||||||||||||||||
(Dollars in millions)
|
Topic 606 revenue
|
|
All other revenue
|
|
Total
|
|
Topic 606 revenue
|
|
All other revenue
|
|
Total
|
|
2020
|
||||||||||||||
Servicing fees
|
$
|
1,252
|
|
|
$
|
—
|
|
|
$
|
1,252
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,252
|
|
Management fees
|
—
|
|
|
—
|
|
|
—
|
|
|
441
|
|
|
—
|
|
|
441
|
|
|
441
|
|
|||||||
Foreign exchange trading services
|
82
|
|
|
158
|
|
|
240
|
|
|
33
|
|
|
—
|
|
|
33
|
|
|
273
|
|
|||||||
Securities finance
|
75
|
|
|
47
|
|
|
122
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
126
|
|
|||||||
Software and processing fees
|
104
|
|
|
59
|
|
|
163
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|
168
|
|
|||||||
Total fee revenue
|
1,513
|
|
|
264
|
|
|
1,777
|
|
|
474
|
|
|
9
|
|
|
483
|
|
|
2,260
|
|
|||||||
Net interest income
|
—
|
|
|
623
|
|
|
623
|
|
|
—
|
|
|
(10
|
)
|
|
(10
|
)
|
|
613
|
|
|||||||
Total revenue
|
$
|
1,513
|
|
|
$
|
887
|
|
|
$
|
2,400
|
|
|
$
|
474
|
|
|
$
|
(1
|
)
|
|
$
|
473
|
|
|
$
|
2,873
|
|
|
Six Months Ended June 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
|
$
|
2,503
|
|
|
$
|
—
|
|
|
$
|
2,503
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,503
|
|
Management fees
|
—
|
|
|
—
|
|
|
—
|
|
|
861
|
|
|
—
|
|
|
861
|
|
|
861
|
|
|||||||
Foreign exchange trading services
|
168
|
|
|
318
|
|
|
486
|
|
|
67
|
|
|
—
|
|
|
67
|
|
|
553
|
|
|||||||
Securities finance
|
145
|
|
|
94
|
|
|
239
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|
244
|
|
|||||||
Software and processing fees
|
220
|
|
|
123
|
|
|
343
|
|
|
—
|
|
|
16
|
|
|
16
|
|
|
359
|
|
|||||||
Total fee revenue
|
3,036
|
|
|
535
|
|
|
3,571
|
|
|
928
|
|
|
21
|
|
|
949
|
|
|
4,520
|
|
|||||||
Net interest income
|
—
|
|
|
1,302
|
|
|
1,302
|
|
|
—
|
|
|
(16
|
)
|
|
(16
|
)
|
|
1,286
|
|
|||||||
Total other income
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||||
Total revenue
|
$
|
3,036
|
|
|
$
|
1,836
|
|
|
$
|
4,872
|
|
|
$
|
928
|
|
|
$
|
5
|
|
|
$
|
933
|
|
|
$
|
5,805
|
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||||
(In millions)
|
Non-U.S.(1)
|
|
U.S.
|
|
Total
|
|
Non-U.S.(1)
|
|
U.S.
|
|
Total
|
||||||||||||
Total revenue
|
$
|
1,269
|
|
|
$
|
1,668
|
|
|
$
|
2,937
|
|
|
$
|
1,290
|
|
|
$
|
1,583
|
|
|
$
|
2,873
|
|
Income before income tax expense
|
244
|
|
|
559
|
|
|
803
|
|
|
314
|
|
|
404
|
|
|
718
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||||
(In millions)
|
Non-U.S.(1)
|
|
U.S.
|
|
Total
|
|
Non-U.S.(1)
|
|
U.S.
|
|
Total
|
||||||||||||
Total revenue
|
$
|
2,629
|
|
|
$
|
3,373
|
|
|
$
|
6,002
|
|
|
$
|
2,623
|
|
|
$
|
3,182
|
|
|
$
|
5,805
|
|
Income before income tax expense
|
514
|
|
|
1,063
|
|
|
1,577
|
|
|
616
|
|
|
737
|
|
|
1,353
|
|
|
|
|
ACRONYMS
|
|||
|
|
|
|
ABS
|
Asset-backed securities
|
GAAP
|
Generally accepted accounting principles
|
AFS
|
Available-for-sale
|
G-SIB
|
Global systemically important bank
|
AOCI
|
Accumulated other comprehensive income (loss)
|
HQLA(1)
|
High-quality liquid assets
|
ASC
|
Accounting Standards Codification
|
HTM
|
Held-to-maturity
|
ASU
|
Accounting Standards Update
|
ICI
|
Investment Company Institute
|
AUC/A
|
Assets under custody and/or administration
|
LCR(1)
|
Liquidity coverage ratio
|
AUM
|
Assets under management
|
LIBOR
|
London Interbank Offered Rate
|
bps
|
Basis points
|
LTD
|
Long-term debt
|
CCAR
|
Comprehensive Capital Analysis and Review
|
MBS
|
Mortgage-backed securities
|
CRD
|
Charles River Development
|
MMLF
|
Money Market Mutual Fund Liquidity Facility
|
CECL
|
Current Expected Credit Loss
|
NII
|
Net interest income
|
CET1(1)
|
Common equity tier 1
|
NIM
|
Net interest margin
|
CVA
|
Credit valuation adjustment
|
PCAOB
|
Public Company Accounting Oversight Board
|
DOJ
|
Department of Justice
|
RWA(1)
|
Risk-weighted asset
|
DOL
|
Department of Labor
|
SCB
|
Stress Capital Buffer
|
EGRRCPA
|
Economic Growth, Regulatory Relief, Consumer Protection Act
|
SEC
|
Securities and Exchange Commission
|
EPS
|
Earnings per share
|
SLR(1)
|
Supplementary leverage ratio
|
ETF
|
Exchange-Traded Fund
|
SPDR
|
Spider; Standard and Poor's depository receipt
|
EVE
|
Economic value of equity
|
SPOE Strategy
|
Single Point of Entry Strategy
|
FDIC
|
Federal Deposit Insurance Corporation
|
SSIF
|
State Street Intermediate Funding, LLC
|
FHLB
|
Federal Home Loan Bank of Boston
|
TLAC(1)
|
Total loss-absorbing capacity
|
FICC
|
Fixed Income Clearing Corporation
|
VaR
|
Value-at-Risk
|
FTE
|
Fully taxable-equivalent
|
VIE
|
Variable interest entity
|
FX
|
Foreign exchange
|
|
|
|
|
|
|
|
|
|
†
|
|
Denotes management contract or compensatory plan or arrangement
|
|
|
|
*
|
|
Submitted electronically herewith
|
|
|
|
|
|
STATE STREET CORPORATION
|
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
|
|
|
|
Date:
|
July 27, 2020
|
|
By:
|
|
/s/ ERIC W. ABOAF
|
|
|
|
|
|
Eric W. Aboaf,
|
|
|
|
|
|
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
|
|
|
|
|
|
|
|
|
|
|
|
|
Date:
|
July 27, 2020
|
|
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:
|
July 27, 2020
|
|
By:
|
/s/ RONALD P. O'HANLEY
|
|
|
|
|
Ronald P. O'Hanley,
|
|
|
|
|
Chairman, 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:
|
July 27, 2020
|
|
By:
|
/s/ ERIC W. ABOAF
|
|
|
|
|
Eric W. Aboaf,
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
|
Date:
|
July 27, 2020
|
|
By:
|
/s/ RONALD P. O'HANLEY
|
|
|
|
|
Ronald P. O'Hanley,
|
|
|
|
|
Chairman, President and Chief Executive Officer
|
|
|
|
|
|
Date:
|
July 27, 2020
|
|
By:
|
/s/ ERIC W. ABOAF
|
|
|
|
|
Eric W. Aboaf,
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|