Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table presents the fair value of derivative contracts by major product type on a gross basis. Gross fair values exclude the effects of both counterparty netting as well as collateral, and therefore are not representative of our exposure. The table below also presents the amounts of counterparty netting and cash collateral that have been offset in the consolidated balance sheet, as well as cash and securities collateral posted and received under enforceable master netting agreements that do not meet the criteria for netting. Derivative assets and liabilities which are not subject to an enforceable master netting agreement, or are subject to a netting agreement where an appropriate legal opinion to determine such agreements are enforceable has not been either sought or obtained, have not been netted in the following table. Where we have received or posted collateral under netting agreements where an appropriate legal opinion to determine such agreements are enforceable has not been either sought or obtained, the related collateral also has not been netted in the following table.


	March 31, 2025				December 31, 2024
	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
	(in millions)
Derivatives accounted for as fair value hedges:(1)

OTC-cleared(2)	$	—	$	8	$	—	$	—
Bilateral OTC(2)	1		4		25		5
Interest rate contracts	1		12		25		5
Derivatives accounted for as cash flow hedges:(1)



Foreign exchange contracts - bilateral OTC(2)	32		4		99		—

OTC-cleared(2)	2		6		—		—
Bilateral OTC(2)	—		2		—		4
Interest rate contracts	2		8		—		4
Total derivatives accounted for as hedges	35		24		124		9
Trading derivatives not accounted for as hedges:(3)
Exchange-traded(2)	7		6		2		2
OTC-cleared(2)	55		—		68		—
Bilateral OTC(2)	763		466		1,027		624
Interest rate contracts	825		472		1,097		626



Foreign exchange contracts - bilateral OTC(2)	8,606		8,257		16,292		16,241



Equity contracts - bilateral OTC(2)	757		340		576		634



Precious metals contracts - bilateral OTC(2)	1,678		1,685		1,220		1,092

OTC-cleared(2)	4		—		—		—
Bilateral OTC(2)	162		130		246		105
Credit contracts	166		130		246		105
Other non-qualifying derivatives not accounted for as hedges:(1)



Interest rate contracts - bilateral OTC(2)	4		84		—		97






Equity contracts - bilateral OTC(2)	287		354		440		189







OTC-cleared(2)	8		—		—		—
Bilateral OTC(2)	15		86		25		94
Credit contracts	23		86		25		94

Other contracts - bilateral OTC(2)(4)	6		32		5		31
Total derivatives	12,387		11,464		20,025		19,118
Less: Gross amounts of receivable / payable subject to enforceable master netting agreements(5)(7)	8,978		8,978		15,345		15,345
Less: Gross amounts of cash collateral received / posted subject to enforceable master netting agreements(6)(7)	2,344		1,178		2,925		1,291
Net amounts of derivative assets / liabilities presented in the balance sheet	1,065		1,308		1,755		2,482

Less: Gross amounts of financial instrument collateral received / posted subject to enforceable master netting agreements but not offset in the consolidated balance sheet	272		17		265		268

Net amounts of derivative assets / liabilities	$	793	$	1,291	$	1,490	$	2,214

(1)Derivative assets / liabilities related to cash flow hedges, fair value hedges and derivative instruments held for purposes other than for trading are recorded in other assets / interest, taxes and other liabilities on the consolidated balance sheet.

(2)Over-the-counter ("OTC") derivatives include derivatives executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. The credit risk associated with bilateral OTC derivatives is managed through obtaining collateral and enforceable master netting agreements. OTC-cleared derivatives are executed bilaterally in the OTC market but then novated to a central clearing counterparty, whereby the central clearing counterparty becomes the counterparty to each of the original counterparties. Exchange traded derivatives are executed directly on an organized exchange. Credit risk is minimized for OTC-cleared derivatives and exchange traded derivatives through daily margining requirements. In addition, OTC-cleared derivatives with central clearing counterparties are settled daily.

(3)Trading related derivative assets / liabilities are recorded in trading assets / trading liabilities on the consolidated balance sheet.

(4)Consists of swap agreements entered into in conjunction with the sales of Visa Inc. ("Visa") Class B common shares ("Class B Shares").

(5)Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable netting agreements.

(6)Represents the netting of cash collateral posted and received by counterparty under enforceable netting agreements.

(7)Netting is performed at a counterparty level in cases where enforceable master netting agreements are in place, regardless of the type of derivative instrument. Therefore, we have not allocated netting to the different types of derivative instruments shown in the table above.

Schedule of Gains and Losses on Fair Value Hedging Instruments

The following table presents the carrying amount of hedged items in fair value hedges recognized in the consolidated balance sheet at March 31, 2025 and December 31, 2024, along with the cumulative amount of fair value hedging adjustments included in the carrying amount of those hedged items:


	Carrying Amount of Hedged Items(1)		Cumulative Amount of Fair Value Hedging Adjustments Increasing (Decreasing) the Carrying Amount of Hedged Items
			Active		Discontinued		Total
	(in millions)
At March 31, 2025
Securities available-for-sale ("AFS")	$	14,920	$	(1,043)	$	(230)	$	(1,273)
Deposits	1,483		(46)		29		(17)
Long-term debt	9,034		(201)		20		(181)
At December 31, 2024
Securities AFS	11,685		(1,283)		(232)		(1,515)
Deposits	1,476		(61)		37		(24)
Long-term debt	8,236		(295)		31		(264)

(1)The carrying amount of securities AFS represents the amortized cost basis.

The following table presents information on gains and losses on derivative instruments designated and qualifying as hedging instruments and the hedged items in fair value hedges and their location on the consolidated statement of income:


	Location of Gain (Loss) Recognized in Income	Gain (Loss) on Derivatives		Gain (Loss) on Hedged Items


		(in millions)












Three Months Ended March 31, 2025
Interest rate contracts / Securities AFS	Net interest income	$	(177)		$	344
Interest rate contracts / Deposits	Net interest income	8			(31)
Interest rate contracts / Long-term debt	Net interest income	52			(179)
Total		$	(117)		$	134

Three Months Ended March 31, 2024
Interest rate contracts / Securities AFS	Net interest income	$	368		$	(194)
Interest rate contracts / Deposits	Net interest income	(23)			(12)
Interest rate contracts / Long-term debt	Net interest income	(100)			(40)
Total		$	245		$	(246)

Schedule of Gains and Losses on Cash Flow Hedging Instruments

The following table presents information on gains and losses on derivative instruments designated and qualifying as hedging instruments in cash flow hedges (including amounts recognized in AOCI from discontinued cash flow hedges) and their location on the consolidated statement of income:


	Gain (Loss) Recognized in AOCI on Derivatives				Location of Gain (Loss) Reclassified from AOCI into Income	Gain (Loss) Reclassified From AOCI into Income
	2025		2024				2025		2024
	(in millions)





Three Months Ended March 31,
Foreign exchange contracts	$	(2)	$	(1)		Net interest income	$	—	$	—
Interest rate contracts	(113)		42			Net interest income	(10)		(7)
Total	$	(115)	$	41			$	(10)	$	(7)

Schedule of Gains and Losses on Derivative Instruments Included in Trading Activities

The following table presents information on gains and losses on derivative instruments held for trading purposes and their location on the consolidated statement of income:


	Location of Gain (Loss) Recognized in Income on Derivatives		Gain (Loss) Recognized in Income on Derivatives
		Three Months Ended March 31,
			2025		2024
			(in millions)
Interest rate contracts	Trading revenue		$	(127)	$	71

Foreign exchange contracts	Trading revenue		134		117
Equity contracts	Trading revenue		778		(1,048)
Precious metals contracts	Trading revenue		4		(22)
Credit contracts	Trading revenue		(52)		79
Total			$	737	$	(803)

Schedule of Gains and Losses on Derivative Instruments Held for Non-qualifying Hedging Activities

The following table presents information on gains and losses on derivative instruments held for non-qualifying hedging and other activities and their location on the consolidated statement of income:


	Location of Gain (Loss) Recognized in Income on Derivatives		Gain (Loss) Recognized in Income on Derivatives
		Three Months Ended March 31,
			2025		2024
			(in millions)
Interest rate contracts	Gain (loss) on instruments designated at fair value and related derivatives		$	32	$	(54)


Equity contracts	Gain (loss) on instruments designated at fair value and related derivatives		(200)		151
Equity contracts	Other income (loss)		(3)		—


Credit contracts	Other income (loss)		(3)		(25)
Other contracts(1)	Other income (loss)		(7)		(2)
Total			$	(181)	$	70

(1)Consists of swap agreements entered into in conjunction with the sales of Visa Class B Shares.

Credit-Risk Related Contingent Features

The following table presents the amount of additional collateral that we would be required to post (from the current collateral level) related to derivative instruments with credit-risk related contingent features if our long-term ratings were downgraded by one or two notches. A downgrade by a single rating agency that does not result in a rating lower than a preexisting corresponding rating provided by another rating agency will generally not result in additional collateral.


	One-notch downgrade		Two-notch downgrade
	(in millions)
Amount of additional collateral to be posted upon downgrade	$	—	$	35

Notional Value of Derivative Contracts

The following table summarizes the notional values of derivative contracts:


	March 31, 2025		December 31, 2024
	(in millions)
Interest rate:
Futures and forwards	$	39,170	$	16,829
Swaps	112,409		104,458
Options written	667		1,217
Options purchased	594		1,222
Total interest rate	152,840		123,726
Foreign exchange:
Swaps, futures and forwards	959,521		1,026,047
Options written	37,986		29,739
Options purchased	38,048		29,859
Spot	49,044		32,603
Total foreign exchange	1,084,599		1,118,248
Commodities, equities and precious metals:
Swaps, futures and forwards	33,195		33,520
Options written	1,649		1,513
Options purchased	10,387		9,855
Total commodities, equities and precious metals	45,231		44,888
Credit derivatives	20,643		19,175
Other contracts(1)	1,841		1,670
Total	$	1,305,154	$	1,307,707

(1)Consists of swap agreements entered into in conjunction with the sales of Visa Class B Shares.

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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