v3.25.2
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2025
Credit Loss [Abstract]  
Net Loans
The following table presents our recorded investment in loans, by segment, as of the dates indicated:
(In millions)June 30, 2025December 31, 2024
Domestic(1):
Commercial and financial:
Fund finance(2)
$17,366 $16,347 
Leveraged loans2,878 2,742 
Overdrafts2,101 1,208 
Collateralized loan obligations in loan form50 50 
Other(3)
1,935 3,220 
Commercial real estate2,551 2,842 
Total domestic$26,881 $26,409 
Foreign(1):
Commercial and financial:
Fund finance(2)
$7,120 $6,601 
Leveraged loans1,168 1,082 
Overdrafts1,909 772 
Collateralized loan obligations in loan form10,201 8,336 
Total foreign20,398 16,791 
Total loans(4)
47,279 43,200 
Allowance for credit losses(179)(174)
Loans, net of allowance$47,100 $43,026 
(1) Domestic and foreign categorization is based on the borrower’s country of domicile.
(2) Fund finance loans include primarily $12.66 billion private equity capital call finance loans, $7.80 billion loans to real money funds and $1.50 billion loans to business development companies as of June 30, 2025, compared to $11.54 billion private equity capital call finance loans, $8.09 billion loans to real money funds and $1.44 billion loans to business development companies as of December 31, 2024.
(3) Includes $1.74 billion securities finance loans and $190 million loans to municipalities as of June 30, 2025 and $3.01 billion securities finance loans and $214 million loans to municipalities as of December 31, 2024.
(4) As of June 30, 2025, excluding overdrafts, floating rate loans totaled $40.68 billion and fixed rate loans totaled $2.59 billion. We have entered into interest rate swap agreements to hedge the forecasted cash flows associated with EURIBOR indexed floating-rate loans. See Note 10 to the consolidated financial statements in our 2024 Form 10-K for additional details.
Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator
The following tables present our recorded loans to counterparties by risk rating, as noted above, as of the dates indicated:
June 30, 2025Commercial and FinancialCommercial Real EstateTotal Loans
(In millions)
Investment grade$39,700 $1,491 $41,191 
Speculative4,762 649 5,411 
Special mention196 45 241 
Substandard53 174 227 
Doubtful— 192 192 
Total(1)(2)
$44,711 $2,551 $47,262 
December 31, 2024Commercial and FinancialCommercial Real EstateTotal Loans 
(In millions)
Investment grade$35,831 $1,969 $37,800 
Speculative4,278 409 4,687 
Special mention187 62 249 
Substandard48 211 259 
Doubtful— 191 191 
Total(1)(2)
$40,344 $2,842 $43,186 
(1) Loans include $4.01 billion and $1.98 billion of overdrafts as of June 30, 2025 and December 31, 2024, respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us. As of June 30, 2025, $3.81 billion overdrafts were investment grade and $0.20 billion overdrafts were speculative.
(2) Total does not include $17 million and $14 million of loans classified as held-for-sale as of June 30, 2025 and December 31, 2024, respectively.
The following table presents the amortized cost basis, by year of origination and credit quality indicator, as of June 30, 2025. For origination years before the fifth annual period, we present the aggregate amortized cost basis of loans. For purchased loans, the date of issuance is used to determine the year of origination, not the date of acquisition. For modified, extended or renewed lending arrangements, we evaluate whether a credit event has occurred which would consider the loan to be a new arrangement.
(In millions)20252024202320222021PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$2,456 $856 $183 $39 $32 $195 $17,093 $20,854 
Speculative528 1,709 172 114 280 115 493 3,411 
Special mention— 49 — — — — — 49 
Substandard— — — 12 — — — 12 
Total commercial and financing$2,984 $2,614 $355 $165 $312 $310 $17,586 $24,326 
Commercial real estate:
Risk Rating:
Investment grade$— $41 $83 $344 $317 $706 $— $1,491 
Speculative— — 133 20 31 465 — 649 
Special mention— — — — — 45 — 45 
Substandard— — — — — 174 — 174 
Doubtful67 — — — — 125 — 192 
Total commercial real estate$67 $41 $216 $364 $348 $1,515 $— $2,551 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$4,901 $3,931 $1,381 $671 $1,770 $— $6,192 $18,846 
Speculative219 592 50 58 169 80 183 1,351 
Special mention46 48 22 — 5 26 — 147 
Substandard— — — — 41 — — 41 
Total commercial and financing$5,166 $4,571 $1,453 $729 $1,985 $106 $6,375 $20,385 
Total loans(2)
$8,217 $7,226 $2,024 $1,258 $2,645 $1,931 $23,961 $47,262 
(1) Any reserve associated with accrued interest is not material. As of June 30, 2025, accrued interest receivable of $359 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
(2) Total does not include $17 million of loans classified as held-for-sale as of June 30, 2025.
The following table presents the amortized cost basis, by year of origination and credit quality indicator as of December 31, 2024:
(In millions)20242023202220212020PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$1,946 $223 $89 $47 $6 $197 $18,044 $20,552 
Speculative1,834 173 154 387 53 155 136 2,892 
Special mention47 10 — 54 — — — 111 
Substandard— — 12 — — — — 12 
Total commercial and financing$3,827 $406 $255 $488 $59 $352 $18,180 $23,567 
Commercial real estate:
Risk Rating:
Investment grade$41 $63 $488 $278 $128 $971 $— $1,969 
Speculative— 153 20 69 100 67 — 409 
Special mention— — — — — 62 — 62 
Substandard— — — — — 211 — 211 
Doubtful— — — — — 191 — 191 
Total commercial real estate$41 $216 $508 $347 $228 $1,502 $— $2,842 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$4,243 $1,796 $1,152 $2,187 $— $— $5,901 $15,279 
Speculative607 174 44 246 46 43 226 1,386 
Special mention— 35 26 15 — — — 76 
Substandard— — — 36 — — — 36 
Total commercial and financing$4,850 $2,005 $1,222 $2,484 $46 $43 $6,127 $16,777 
Total loans(2)
$8,718 $2,627 $1,985 $3,319 $333 $1,897 $24,307 $43,186 
(1) Any reserve associated with accrued interest is not material. As of December 31, 2024, accrued interest receivable of $327 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
(2) Total does not include $14 million of loans classified as held-for-sale as of December 31, 2024.
Schedule of Activity in the Allowance for Loan Losses
The following tables present the activity in the allowance for credit losses by portfolio and class for the periods indicated:
Three Months Ended June 30, 2025
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$65 $6 $105 $10 $— $186 
Provision7 1 19 2 1 30 
Charge-offs(2)
(1)— (23)— — (24)
Ending balance$71 $7 $101 $12 $1 $192 
(1) Includes $5 million allowance for credit losses on fund finance loans and $2 million on other loans.
(2) Related to the restructuring of a commercial real estate loan and the sale of certain leveraged loans in the three months ended June 30, 2025.
Six Months Ended June 30, 2025
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$68 $4 $102 $9 $— $183 
Provision13 3 22 3 1 42 
Charge-offs(2)
(10)— (23)(33)
Ending balance$71 $7 $101 $12 $1 $192 
(1) Includes $5 million allowance for credit losses on fund finance loans and $2 million on other loans.
(2) Related to the restructuring of a commercial real estate loan and the sale of certain leveraged loans in the six months ended June 30, 2025.
Three Months Ended June 30, 2024
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsTotal
Allowance for credit losses:
Beginning balance$71 $4 $60 $1 $10 $146 
Provision
(4)— 16 — (2)10 
Charge-offs(2)
(11)— — — — (11)
Ending balance$56 $4 $76 $1 $8 $145 
(1) Includes $3 million allowance for credit losses on fund finance loans and $1 million on other loans.
(2) Related to the sale of leveraged loans in the three months ended June 30, 2024.
Six Months Ended June 30, 2024
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsTotal
Allowance for credit losses:
Beginning balance$72 $3 $60 $1 $14 150 
Provision1 1 41 — (6)37 
Charge-offs(2)
(17)— (25)— — (42)
Ending balance$56 $4 $76 $1 $8 $145 
(1) Includes $3 million allowance for credit losses on fund finance loans and $1 million on other loans.
(2) Related to the sale of commercial real estate and leveraged loans in the six months ended June 30, 2024.