| Notional and Fair Value Amounts of Client-related and Trading Derivative Financial Instruments |
The following table shows the notional and fair values of all derivative financial instruments as of June 30, 2025 and December 31, 2024. TABLE 72: NOTIONAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS | | | | | | | | | | | | | | | | | | | | | | JUNE 30, 2025 | DECEMBER 31, 2024 | | NOTIONAL VALUE | FAIR VALUE | NOTIONAL VALUE | FAIR VALUE | | (In Millions) | ASSET(1) | LIABILITY(2) | ASSET(1) | LIABILITY(2) | | Derivatives Designated as Hedging under GAAP | | | | | | | | Interest Rate Contracts | | | | | | | | Fair Value Hedges | $ | 9,748.3 | | $ | 242.4 | | $ | 223.9 | | $ | 9,706.3 | | $ | 189.4 | | $ | 159.3 | | | | | | | | | | Foreign Exchange Contracts | | | | | | | | Cash Flow Hedges | 138.4 | | — | | 7.7 | | 872.8 | | 40.8 | | — | | | Net Investment Hedges | 4,397.9 | | — | | 407.4 | | 4,558.6 | | 196.5 | | 24.3 | | | Total Derivatives Designated as Hedging under GAAP | $ | 14,284.6 | | $ | 242.4 | | $ | 639.0 | | $ | 15,137.7 | | $ | 426.7 | | $ | 183.6 | | | Derivatives Not Designated as Hedging under GAAP | | | | | | | | Non-Designated Risk Management Derivatives | | | | | | | Foreign Exchange Contracts | $ | 1.7 | | $ | — | | $ | — | | $ | 1.7 | | $ | — | | $ | — | | Other Financial Derivatives(3) | 572.0 | | — | | 22.8 | | 512.0 | | — | | 27.2 | | | Total Non-Designated Risk Management Derivatives | $ | 573.7 | | $ | — | | $ | 22.8 | | $ | 513.7 | | $ | — | | $ | 27.2 | | | Client-Related and Trading Derivatives | | | | | | | Foreign Exchange Contracts | $ | 402,917.6 | | $ | 3,697.1 | | $ | 3,697.2 | | $ | 362,658.7 | | $ | 4,760.0 | | $ | 4,685.5 | | Interest Rate Contracts | 14,208.9 | | 127.0 | | 178.7 | | 15,081.7 | | 171.8 | | 262.1 | | | Total Client-Related and Trading Derivatives | $ | 417,126.5 | | $ | 3,824.1 | | $ | 3,875.9 | | $ | 377,740.4 | | $ | 4,931.8 | | $ | 4,947.6 | | | Total Derivatives Not Designated as Hedging under GAAP | $ | 417,700.2 | | $ | 3,824.1 | | $ | 3,898.7 | | $ | 378,254.1 | | $ | 4,931.8 | | $ | 4,974.8 | | | Total Gross Derivatives | $ | 431,984.8 | | $ | 4,066.5 | | $ | 4,537.7 | | $ | 393,391.8 | | $ | 5,358.5 | | $ | 5,158.4 | | Less: Netting(4) | | 3,175.5 | | 2,380.7 | | | 1,910.4 | | 4,199.6 | | | Total Derivative Financial Instruments | | $ | 891.0 | | $ | 2,157.0 | | | $ | 3,448.1 | | $ | 958.8 | |
(1) Derivative assets are reported in Other Assets on the consolidated balance sheets. (2) Derivative liabilities are reported in Other Liabilities on the consolidated balance sheets. (3) Includes swaps related to sales of certain Visa Class B common shares. (4) See further detail in Note 23—Offsetting of Assets and Liabilities.
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| Cash Flow Hedge Derivative Gains and Losses Recognized in AOCI and Reclassified to Income |
The following tables provide fair value and cash flow hedge derivative gains and losses recognized in income during the three- and six- month period ended June 30, 2025 and 2024. TABLE 73: LOCATION AND AMOUNT OF FAIR VALUE AND CASH FLOW HEDGE DERIVATIVE GAINS AND LOSSES RECORDED IN INCOME | | | | | | | | | | | | | | | | (In Millions) | INTEREST INCOME | INTEREST EXPENSE | | THREE MONTHS ENDED JUNE 30, | 2025 | 2024 | 2025 | 2024 | | Total amounts on the consolidated statements of income | $ | 2,212.8 | | $ | 2,506.5 | | $ | 1,602.3 | | $ | 1,983.6 | | | Gains (Losses) on fair value hedges recognized on | | | | | | Interest Rate Contracts | | | | | | Recognized on derivatives | (48.0) | | 34.5 | | 25.5 | | 0.1 | | | Recognized on hedged items | 48.0 | | (34.5) | | (25.5) | | (0.1) | | | Amounts related to interest settlements on derivatives | 9.2 | | 28.3 | | (14.8) | | (19.9) | | | Total gains (losses) recognized on fair value hedges | $ | 9.2 | | $ | 28.3 | | $ | (14.8) | | $ | (19.9) | | | Gains (Losses) on cash flow hedges recognized on | | | | | | Foreign Exchange Contracts | | | | | | Net gains (losses) reclassified from AOCI to net income | $ | 3.4 | | $ | 1.0 | | $ | — | | $ | — | | | Total gains (losses) reclassified from AOCI to net income on cash flow hedges | $ | 3.4 | | $ | 1.0 | | $ | — | | $ | — | |
| | | | | | | | | | | | | | | | (In Millions) | INTEREST INCOME | INTEREST EXPENSE | | SIX MONTHS ENDED JUNE 30, | 2025 | 2024 | 2025 | 2024 | | Total amounts on the consolidated statements of income | $ | 4,353.7 | | $ | 4,952.1 | | $ | 3,175.1 | | $ | 3,901.1 | | | Gains (Losses) on fair value hedges recognized on | | | | | | Interest Rate Contracts | | | | | | Recognized on derivatives | (147.6) | | 157.5 | | 64.7 | | (30.0) | | | Recognized on hedged items | 147.6 | | (157.5) | | (64.7) | | 30.0 | | | Amounts related to interest settlements on derivatives | 18.2 | | 50.6 | | (29.4) | | (39.8) | | | Total gains (losses) recognized on fair value hedges | $ | 18.2 | | $ | 50.6 | | $ | (29.4) | | $ | (39.8) | | | Gains (Losses) on cash flow hedges recognized on | | | | | | Foreign Exchange Contracts | | | | | | Net gains (losses) reclassified from AOCI to net income | $ | 13.9 | | $ | 6.5 | | $ | — | | $ | — | | | Total gains (losses) reclassified from AOCI to net income on cash flow hedges | $ | 13.9 | | $ | 6.5 | | $ | — | | $ | — | |
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| Location and Amount of Fair Value Hedge Derivative Gains and Losses Recorded in Income |
The following table provides the impact of fair value hedge accounting on the carrying value of the designated hedged items as of June 30, 2025 and December 31, 2024. TABLE 74: HEDGED ITEMS IN FAIR VALUE HEDGES | | | | | | | | | | | | | | | | JUNE 30, 2025 | DECEMBER 31, 2024 | | (In Millions) | CARRYING VALUE OF THE HEDGED ITEMS | CUMULATIVE HEDGE ACCOUNTING BASIS ADJUSTMENT(1)(3) | CARRYING VALUE OF THE HEDGED ITEMS | CUMULATIVE HEDGE ACCOUNTING BASIS ADJUSTMENT(2)(3) | Available for Sale Debt Securities(4) | $ | 7,769.9 | | $ | 102.2 | | $ | 7,567.3 | | $ | (48.7) | | | Senior Notes and Long-Term Subordinated Debt | 2,580.8 | | (165.2) | | 2,507.5 | | (238.0) | |
(1) The cumulative hedge accounting basis adjustment includes $1.5 million related to discontinued hedging relationships of AFS debt securities and $5.7 million related to discontinued hedging relationships in the cumulative hedge accounting basis adjustment of senior notes and long-term debt as of June 30, 2025. (2) The cumulative hedge accounting basis adjustment includes $1.8 million related to discontinued hedging relationships of AFS debt securities and $13.8 million related to discontinued hedging relationships in the cumulative hedge accounting basis adjustment of senior notes and long-term debt as of December 31, 2024. (3) Positive (negative) amounts related to AFS securities represent cumulative fair value hedge basis adjustments that will reduce (increase) net interest income in future periods. Positive (negative) amounts related to Senior Notes and Long-Term Subordinated Debt represent cumulative fair value hedge basis adjustments that will increase (reduce) net interest income in future periods. (4) Carrying value represents amortized cost.
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| Location and Amount of Gains and Losses Recorded in Income for Non-Designated Risk Management Derivative Instruments |
The following table provides the location and amount of gains and losses recorded in the consolidated statements of income for the three and six months ended June 30, 2025 and 2024, respectively, for derivative instruments not designated as hedges under GAAP. TABLE 75: LOCATION AND AMOUNT OF GAINS AND LOSSES RECORDED IN INCOME FOR DERIVATIVES NOT DESIGNATED AS HEDGING UNDER GAAP | | | | | | | | | | | | | | | | | | | (In Millions) | DERIVATIVE GAINS (LOSSES) LOCATION RECOGNIZED IN INCOME | AMOUNT OF DERIVATIVE GAINS (LOSSES) RECOGNIZED IN INCOME | | THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | | 2025 | 2024 | 2025 | 2024 | | Non-designated risk management derivatives | | | | | | Foreign Exchange Contracts | Other Operating Income | $ | — | | $ | — | | $ | — | | $ | (0.2) | | Other Financial Derivatives(1) | Other Operating Income | 0.2 | | (15.4) | | (5.4) | | (16.6) | | | Gains (Losses) from non-designated risk management derivatives | $ | 0.2 | | $ | (15.4) | | $ | (5.4) | | $ | (16.8) | | | Client-related and trading derivatives | | | | | | Foreign Exchange Contracts | Foreign Exchange Trading Income | $ | 50.6 | | $ | 58.4 | | $ | 109.3 | | $ | 115.4 | | | Interest Rate Contracts | Security Commissions and Trading Income | 1.2 | | 0.7 | | 1.7 | | 1.9 | | | Gains from client-related and trading derivatives | $ | 51.8 | | $ | 59.1 | | $ | 111.0 | | $ | 117.3 | | | Total gains from derivatives not designated as hedging under GAAP | $ | 52.0 | | $ | 43.7 | | $ | 105.6 | | $ | 100.5 | |
(1) Includes swaps related to the sale of certain Visa Class B common shares.
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