Fair Value Option (Tables)

6 Months Ended

Jun. 30, 2025

Changes in fair value under the fair value option election

The following table presents the changes in fair value included in the Consolidated statements of income for the three and six months ended June 30, 2025 and 2024, for items for which the fair value option was elected. The profit and loss information presented below only includes the financial instruments that were elected to be measured at fair value; related risk management instruments, which are required to be measured at fair value, are not included in the table.


	Three months ended June 30,
	2025							2024
(in millions)	Principal transactions		All other income			Total changes in fair value recorded (e)		Principal transactions		All other income			Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreements	$	47	$	—		$	47	$	13	$	—		$	13
Securities borrowed	(4)		—			(4)		215		—			215
Trading assets:
Debt and equity instruments, excluding loans	1,247		—			1,247		1,561		—			1,561
Loans reported as trading assets:
Changes in instrument-specific credit risk	(1)		—			(1)		30		—			30
Other changes in fair value	14		5		(c)	19		6		1		(c)	7
Loans:
Changes in instrument-specific credit risk	148		—			148		145		(7)		(c)	138
Other changes in fair value	87		146		(c)	233		39		110		(c)	149
Other assets	3		—			3		5		—			5
Deposits(a)	(531)		—			(531)		(984)		—			(984)
Federal funds purchased and securities loaned or sold under repurchase agreements	(5)		—			(5)		5		—			5
Short-term borrowings(a)	(392)		—			(392)		(229)		—			(229)
Trading liabilities	2		—			2		10		—			10
Beneficial interests issued by consolidated VIEs	—		—			—		—		—			—
Other liabilities	(7)		—			(7)		(3)		—			(3)
Long-term debt(a)(b)	(3,172)		2		(c)(d)	(3,170)		(2)		(2)		(c)(d)	(4)


	Six months ended June 30,
	2025							2024
(in millions)	Principal transactions		All other income			Total changes in fair value recorded (e)		Principal transactions		All other income			Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreements	$	73	$	—		$	73	$	49	$	—		$	49
Securities borrowed	(4)		—			(4)		214		—			214
Trading assets:
Debt and equity instruments, excluding loans	1,048		—			1,048		2,809		—			2,809
Loans reported as trading assets:
Changes in instrument-specific credit risk	23		—			23		198		—			198
Other changes in fair value	17		8		(c)	25		19		1		(c)	20
Loans:
Changes in instrument-specific credit risk	417		—			417		270		(5)		(c)	265
Other changes in fair value	257		327		(c)	584		(18)		155		(c)	137
Other assets	31		—			31		18		—			18
Deposits(a)	(992)		—			(992)		(1,958)		—			(1,958)
Federal funds purchased and securities loaned or sold under repurchase agreements	(12)		—			(12)		10		—			10
Short-term borrowings(a)	(539)		—			(539)		(450)		—			(450)
Trading liabilities	20		—			20		(2)		—			(2)
Beneficial interests issued by consolidated VIEs	—		—			—		—		—			—
Other liabilities	(5)		—			(5)		(2)		—			(2)
Long-term debt(a)(b)	(3,357)		(4)		(c)(d)	(3,361)		(936)		(10)		(c)(d)	(946)

(a)Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected are recorded in OCI, while realized gains/(losses) are recorded in principal transactions revenue. Realized gains/(losses) due to instrument-specific credit risk recorded in principal transactions revenue were not material for the three and six months ended June 30, 2025 and 2024.

(b)Long-term debt measured at fair value predominantly relates to structured notes. Although the risk associated with the structured notes is actively managed, the gains/(losses) reported in this table do not include the income statement impact of the risk management instruments used to manage such risk.

(c)Reported in mortgage fees and related income.

(d)Reported in other income.

(e)Changes in fair value exclude contractual interest, which is included in interest income and interest expense for all instruments other than certain hybrid financial instruments in CIB. Refer to Note 6 for further information regarding interest income and interest expense.

Difference between aggregate fair value and aggregate remaining contractual principal balance outstanding

The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of June 30, 2025 and December 31, 2024, for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected.


	June 30, 2025							December 31, 2024
(in millions)	Contractual principal outstanding			Fair value		Fair value over/(under) contractual principal outstanding		Contractual principal outstanding			Fair value		Fair value over/(under) contractual principal outstanding
Loans
Nonaccrual loans
Loans reported as trading assets	$	3,406		$	469	$	(2,937)	$	3,429		$	464	$	(2,965)
Loans	1,385			1,130		(255)		1,711			1,492		(219)
Subtotal	4,791			1,599		(3,192)		5,140			1,956		(3,184)
90 or more days past due and government guaranteed
Loans(a)	57			52		(5)		50			45		(5)
All other performing loans(b)
Loans reported as trading assets	13,810			12,318		(1,492)		12,171			10,852		(1,319)
Loans(c)	52,492			52,118		(374)		40,342			39,813		(529)
Subtotal	66,302			64,436		(1,866)		52,513			50,665		(1,848)
Total loans	$	71,150		$	66,087	$	(5,063)	$	57,703		$	52,666	$	(5,037)
Long-term debt
Principal-protected debt	$	66,782	(e)	$	56,559	$	(10,223)	$	57,414	(e)	$	47,780	$	(9,634)
Nonprincipal-protected debt(d)	NA			61,798		NA		NA			53,000		NA
Total long-term debt	NA			$	118,357	NA		NA			$	100,780	NA
Long-term beneficial interests
Nonprincipal-protected debt(d)	NA			$	7	NA		NA			$	1	NA
Total long-term beneficial interests	NA			$	7	NA		NA			$	1	NA

(a)These balances are excluded from nonaccrual loans as the loans are insured and/or guaranteed by U.S. government agencies.

(b)There were no performing loans that were ninety days or more past due as of June 30, 2025 and December 31, 2024.

(c)Includes loans insured and/or guaranteed by U.S. government agencies less than 90 days past due.

(d)Remaining contractual principal is not applicable to nonprincipal-protected structured notes and long-term beneficial interests. Unlike principal-protected structured notes and long-term beneficial interests, for which the Firm is obligated to return a stated amount of principal at maturity, nonprincipal-protected structured notes and long-term beneficial interests do not obligate the Firm to return a stated amount of principal at maturity, but for structured notes to return an amount based on the performance of an underlying variable or derivative feature embedded in the note. However, investors are exposed to the credit risk of the Firm as issuer for both nonprincipal-protected and principal-protected notes.

(e)Where the Firm issues principal-protected zero-coupon or discount notes, the balance reflects the contractual principal payment at maturity or, if applicable, the contractual principal payment at the Firm’s next call date.

Fair value option, structured notes by balance sheet classification and primary embedded derivative risk

The following table presents the fair value of structured notes, by balance sheet classification and the primary risk type.


	June 30, 2025									December 31, 2024
(in millions)	Long-term debt		Short-term borrowings		Deposits			Total		Long-term debt		Short-term borrowings		Deposits			Total
Risk exposure
Interest rate	$	54,950	$	2,092	$	37,849		$	94,891	$	46,220	$	1,065	$	28,871		$	76,156
Credit	8,396		1,205		—			9,601		6,213		1,242		—			7,455
Foreign exchange	2,232		1,015		369			3,616		2,309		1,058		416			3,783
Equity	51,194		8,244		2,969			62,407		44,149		7,881		2,986			55,016
Commodity	912		74		—		(a)	986		1,331		62		1		(a)	1,394
Total structured notes	$	117,684	$	12,630	$	41,187		$	171,501	$	100,222	$	11,308	$	32,274		$	143,804

(a)Excludes deposits linked to precious metals for which the fair value option has not been elected of $1.5 billion and $869 million for the periods ended June 30, 2025 and December 31, 2024, respectively.