v3.25.2
Line of Business Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Line of Business Information Line of Business Information
Our operations are organized into two lines of business, which represent our reportable segments: Investment Servicing and Investment Management, which are defined based on products and services provided. The results of operations for these lines of business are not necessarily comparable with those of other companies, including companies in the financial services industry. For information about our two lines of business, as well as revenues, expenses and capital allocation methodologies associated with them, refer to pages 171 to 173 in Note 24 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
Revenue and expenses are directly charged or allocated to our lines of business through management information systems. Our Chief Operating Decision Maker (CODM) is the Chief Executive Officer. The line of business results are regularly provided to the CODM to evaluate the performance of each line of business and to inform how resources are allocated between those lines of business to best achieve management’s strategic and tactical goals. Capital is allocated based on the relative risks and capital requirements inherent in each business line, along with management judgment. Capital allocations may not be representative of the capital that might be required if these lines of business were separate business entities.
The following table summarizes our line of business results for the periods indicated. The “Other” columns presented in the below tables, represent amounts that are not allocated to our two lines of business.
Three Months Ended June 30,
Investment
Servicing		Investment
Management		OtherTotal
(Dollars in millions)20252024202520242025202420252024
Revenue:
Servicing fees$1,304 $1,239 $— $— $— $— $1,304 $1,239 
Management fees— — 562 511 — — 562 511 
Foreign exchange trading services390 304 38 32 3 — 431 336 
Securities finance119 101 7 7 — — 126 108 
Software and processing fees254 214 — — (24)— 230 214 
Other fee revenue
51 36 15 12 — — 66 48 
Total fee revenue2,118 1,894 622 562 (21)— 2,719 2,456 
Net interest income726 730 3 5 — — 729 735 
Total revenue2,844 2,624 625 567 (21)— 3,448 3,191 
Provision for credit losses30 10 — — — — 30 10 
Expenses:
Compensation and employee benefits1,033 970 147 129 100 — 1,280 1,099 
Information systems and communications481 436 24 18 18 — 523 454 
Transaction processing services221 206 39 44 — — 260 250 
Other260 268 207 197 (1)1 466 466 
Total expenses1,995 1,880 417 388 117 1 2,529 2,269 
Income before income tax expense$819 $734 $208 $179 $(138)$(1)$889 $912 
Pre-tax margin28.8 %28.0 %33.3 %31.6 %25.8 %28.6 %
Average assets (in billions)$350.4 $303.3 $3.4 $3.0 $353.8 $306.3 
Six Months Ended June 30,
Investment
Servicing		Investment
Management		OtherTotal
(Dollars in millions)20252024202520242025202420252024
Revenue:
Servicing fees$2,579 $2,467 $— $— $— $— $2,579 $2,467 
Management fees— — 1,124 1,021 — — 1,124 1,021 
Foreign exchange trading services727 612 63 55 3 — 793 667 
Securities finance227 191 13 13 — — 240 204 
Software and processing fees
479 421 — — (24)— 455 421 
Other fee revenue85 79 13 19 — — 98 98 
Total fee revenue4,097 3,770 1,213 1,108 (21)— 5,289 4,878 
Net interest income1,435 1,441 8 10 — — 1,443 1,451 
Total revenue5,532 5,211 1,221 1,118 (21)— 6,732 6,329 
Provision for credit losses42 37 — — — — 42 37 
Expenses:
Compensation and employee benefits2,135 2,068 307 283 100 — 2,542 2,351 
Information systems and communications958 853 44 33 18 — 1,020 886 
Transaction processing services438 413 80 85 — — 518 498 
Other483 509 417 407 (1)131 899 1,047 
Total expenses4,014 3,843 848 808 117 131 4,979 4,782 
Income before income tax expense$1,476 $1,331 $373 $310 $(138)$(131)$1,711 $1,510 
Pre-tax margin26.7 %25.5 %30.5 %27.7 %25.4 %23.9 %
Average assets (in billions)$342.1 $301.3 $3.4 $3.1 $345.5 $304.4 
The following table provides additional information about the items included in the line of business results “Other” column for the periods indicated.
Three Months Ended June 30,Six Months Ended June 30,
OtherOther
(Dollars in millions)2025202420252024
Foreign exchange trading services(1)
$3 $— $3 $— 
Client rescoping (revenue impact)(2)
(24)— (24)— 
Repositioning charges(3)
(100)— (100)— 
Client rescoping (expense impact)(2)
(18)— (18)— 
FDIC special assessment(4)
— — — (130)
Other
1 (1)1 (1)
Total
$(138)$(1)$(138)$(131)
(1) Amount consists of a revenue-related recovery associated with the proceeds from a 2018 foreign exchange benchmark litigation resolution, which is reflected in foreign exchange trading services revenue.
(2) Amount related to a client rescoping which decreased income before income taxes by $42 million, of which $24 million is reflected in front office software and data revenue and $18 million is reflected in information systems and communications expenses.
(3) Amount includes $100 million of compensation and benefits expenses related to workforce rationalization consistent with the strategic focus on operating model transformation to drive further operating efficiency and productivity gains over time.
(4) First quarter of 2024 other expenses included a $130 million increase to the FDIC special assessment recorded in the fourth quarter of 2023, primarily related to the increase to the FDIC’s estimate of losses to the DIF associated with the closures of SVB and Signature Bank.