Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

The following tables reflect the notional amounts and fair values for all derivative instruments included in the Condensed Consolidated Balance Sheets as of:


			Fair Value
June 30, 2025 ($ in millions)	Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives Designated as Qualifying Hedging Instruments:
Fair value hedges:
Interest rate swaps related to long-term debt	$	4,955	1		7

Total fair value hedges			1		7
Cash flow hedges:
Interest rate swaps related to C&I loans	11,000		—		2

Interest rate swaps related to commercial mortgage and commercial construction loans	4,000		—		28
Total cash flow hedges			—		30
Total derivatives designated as qualifying hedging instruments			1		37
Derivatives Not Designated as Qualifying Hedging Instruments:
Free-standing derivatives – risk management and other business purposes:
Interest rate contracts related to MSR portfolio	3,720		10		—
Forward contracts related to residential mortgage loans measured at fair value(a)	1,050		1		8
Swap associated with the sale of Visa, Inc. Class B Shares	2,753		—		145
Foreign exchange contracts	125		—		1
Interest-only strips	26		—		—

Interest rate contracts for LIBOR transition	597		—		—
Other	48		—		1
Total free-standing derivatives – risk management and other business purposes			11		155
Free-standing derivatives – customer accommodation:
Interest rate contracts(b)	83,622		510		634
Interest rate lock commitments	374		7		—
Commodity contracts	17,494		739		741
TBA securities	39		—		—
Foreign exchange contracts	31,550		729		699
Total free-standing derivatives – customer accommodation			1,985		2,074
Total derivatives not designated as qualifying hedging instruments			1,996		2,229
Total			$	1,997	2,266

(a)Includes forward sale and forward purchase contracts which are utilized to manage market risk on residential mortgage loans held for sale and the related interest rate lock commitments in addition to certain portfolio residential mortgage loans measured at fair value.

(b)Derivative assets and liabilities are presented net of variation margin of $155 and $36, respectively.


			Fair Value
December 31, 2024 ($ in millions)	Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives Designated as Qualifying Hedging Instruments:
Fair value hedges:
Interest rate swaps related to long-term debt	$	4,955	1		12

Total fair value hedges			1		12
Cash flow hedges:
Interest rate swaps related to C&I loans	11,000		2		4
Interest rate swaps related to C&I loans - forward starting(a)	1,000		1		—

Interest rate swaps related to commercial mortgage and commercial construction loans - forward starting(a)	4,000		3		—
Total cash flow hedges			6		4
Total derivatives designated as qualifying hedging instruments			7		16
Derivatives Not Designated as Qualifying Hedging Instruments:
Free-standing derivatives – risk management and other business purposes:
Interest rate contracts related to MSR portfolio	3,135		4		4
Forward contracts related to residential mortgage loans measured at fair value(b)	881		8		—
Swap associated with the sale of Visa, Inc. Class B Shares	2,465		—		170
Foreign exchange contracts	104		2		—
Interest-only strips	30		—		—
Interest rate contracts for collateral management	1,000		1		—
Interest rate contracts for LIBOR transition	597		—		—
Other	43		—		—
Total free-standing derivatives – risk management and other business purposes			15		174
Free-standing derivatives – customer accommodation:
Interest rate contracts(c)	87,928		708		924
Interest rate lock commitments	264		2		—
Commodity contracts	16,889		575		564
TBA securities	44		—		—
Foreign exchange contracts	38,640		1,165		1,120
Total free-standing derivatives – customer accommodation			2,450		2,608
Total derivatives not designated as qualifying hedging instruments			2,465		2,782
Total			$	2,472	2,798

(a)Forward starting swaps became effective in January and February 2025.

(b)Includes forward sale and forward purchase contracts which are utilized to manage market risk on residential mortgage loans held for sale and the related interest rate lock commitments in addition to certain portfolio residential mortgage loans measured at fair value.

(c)Derivative assets and liabilities are presented net of variation margin of $257 and $45, respectively.

Net Gains (Losses) Recognized in the Income Statement Related to Derivatives in Fair Value Hedging Relationships

The following table reflects the changes in fair value of interest rate contracts, designated as fair value hedges and the changes in fair value of the related hedged items attributable to the risk being hedged, as well as the line items in the Condensed Consolidated Statements of Income in which the corresponding gains or losses are recorded:


	Condensed Consolidated Statements of Income Caption	For the three months ended June 30,			For the six months ended June 30,
($ in millions)		2025		2024	2025	2024
Long-term debt:
Change in fair value of interest rate swaps hedging long-term debt	Interest on long-term debt	$	37	(23)	105	(114)
Change in fair value of hedged long-term debt attributable to the risk being hedged	Interest on long-term debt	(37)		23	(105)	114

The following amounts were recorded in the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of:


($ in millions)	Condensed Consolidated Balance Sheets Caption	June 30, 2025		December 31, 2024
Long-term debt:
Carrying amount of the hedged items	Long-term debt	$	4,945	4,838
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items	Long-term debt	2		(103)
Available-for-sale debt and other securities:
Cumulative amount of fair value hedging adjustments remaining for hedged items for which hedge accounting has been discontinued	Available-for-sale debt and other securities	(8)		(9)

Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges

The following table presents the pre-tax net gains (losses) recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges:


	For the three months ended June 30,			For the six months ended June 30,
($ in millions)	2025		2024	2025	2024
Amount of pre-tax net gains (losses) recognized in OCI	$	144	(145)	399	(557)
Amount of pre-tax net losses reclassified from OCI into net income	(50)		(90)	(105)	(179)

Schedule of Price Risk Derivatives

The net (losses) gains recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table:


	Condensed Consolidated Statements of Income Caption	For the three months ended June 30,		For the six months ended June 30,
($ in millions)		2025	2024	2025	2024
Interest rate contracts:
Interest rate contracts related to MSR portfolio	Mortgage banking net revenue	13	(16)	32	(62)
Forward contracts related to residential mortgage loans measured at fair value	Mortgage banking net revenue	(3)	1	(12)	6

Foreign exchange contracts:
Foreign exchange contracts for risk management purposes	Other noninterest income	(6)	2	(5)	7
Equity contracts:
Swap associated with sale of Visa, Inc. Class B Shares	Other noninterest income	(1)	(23)	(19)	(40)

Net Gains (Losses) Recognized in the Income Statement Related to Free-Standing Derivative Instruments Used For Customer Accommodation

The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table:


	Condensed Consolidated Statements of Income Caption	For the three months ended June 30,			For the six months ended June 30,
($ in millions)		2025		2024	2025	2024
Interest rate contracts:
Interest rate contracts for customers (contract revenue)	Capital market fees	$	7	6	15	11

Interest rate contracts for customers (credit portion of fair value adjustment)	Other noninterest expense	(1)		1	(4)	3
Interest rate lock commitments	Mortgage banking net revenue	12		11	26	20
Commodity contracts:
Commodity contracts for customers (contract revenue)	Capital market fees	4		4	10	8
Commodity contracts for customers (credit portion of fair value adjustment)	Other noninterest expense	—		—	—	1

Foreign exchange contracts:
Foreign exchange contracts for customers (contract revenue)	Capital market fees	19		23	38	40
Foreign exchange contracts for customers (contract revenue)	Other noninterest income	(23)		(12)	(33)	(8)

Offsetting Derivative Financial Instruments

The following table provides a summary of offsetting derivative financial instruments:


	Gross Amount Recognized in the Condensed Consolidated Balance Sheets(a)		Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
			Derivatives	Collateral(b)	Net Amount
As of June 30, 2025
Derivative assets	$	1,990	(1,129)	(175)	686
Derivative liabilities	2,266		(1,129)	(190)	947
As of December 31, 2024
Derivative assets	$	2,470	(1,378)	(573)	519
Derivative liabilities	2,798		(1,378)	(193)	1,227

(a)Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements.

(b)Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table.