BANK LOANS, NET (Tables)

9 Months Ended

Jun. 30, 2025

Schedule of Accounts, Notes, Loans and Financing Receivable

The following table presents the balances for held for investment loans by portfolio segment and held for sale loans.


$ in millions	June 30, 2025			September 30, 2024
SBL	$	18,497		$	16,233
C&I loans	10,754			9,953
CRE loans	7,777			7,615
REIT loans	1,735			1,716
Residential mortgage loans	9,976			9,412
Tax-exempt loans	1,311			1,338
Total loans held for investment	50,050			46,267
Held for sale loans	255			184
Total loans held for sale and investment	50,305			46,451
Allowance for credit losses	(465)			(457)
Bank loans, net	$	49,840		$	45,994

ACL as a % of total loans held for investment	0.93		%	0.99		%
Accrued interest receivable on bank loans (included in “Other receivables, net”)	$	207		$	214

The following table presents the balances for our loans to financial advisors and the related accrued interest receivable.


$ in millions	June 30, 2025			September 30, 2024
Affiliated with the firm as of period-end (1)	$	1,527		$	1,350
No longer affiliated with the firm as of period-end (2)	15			16
Total loans to financial advisors	1,542			1,366
Allowance for credit losses	(42)			(40)
Loans to financial advisors, net	$	1,500		$	1,326
Accrued interest receivable on loans to financial advisors (included in “Other receivables, net”)	$	11		$	9
Allowance for credit losses as a percent of total loans to financial advisors	2.72		%	2.93		%

(1)These loans were predominantly current.

(2)These loans were on nonaccrual status and predominantly past due for a period of 180 days or more.

Loan Purchases and Sales

The following table presents purchases and sales of loans held for investment by portfolio segment.


$ in millions	C&I loans		CRE loans		REIT loans		Residential mortgage loans		Total
Three months ended June 30, 2025
Purchases	$	156	$	—	$	14	$	94	$	264
Sales	$	103	$	—	$	—	$	—	$	103
Nine months ended June 30, 2025
Purchases	$	802	$	—	$	14	$	226	$	1,042
Sales	$	180	$	13	$	—	$	—	$	193
Three months ended June 30, 2024
Purchases	$	218	$	—	$	5	$	112	$	335
Sales	$	159	$	—	$	—	$	—	$	159
Nine months ended June 30, 2024
Purchases	$	738	$	—	$	5	$	234	$	977
Sales	$	322	$	—	$	9	$	—	$	331

Analysis of the Payment Status of Loans Held for Investment

The following table presents information on delinquency status of our loans held for investment.


$ in millions	30-89 days and accruing		90 days or more and accruing		Total past due and accruing		Nonaccrual with allowance		Nonaccrual with no allowance		Current and accruing		Total loans held for investment
June 30, 2025
SBL	$	1	$	—	$	1	$	—	$	—	$	18,496	$	18,497
C&I loans	—		—		—		47		5		10,702		10,754
CRE loans	—		—		—		120		9		7,648		7,777
REIT loans	—		—		—		19		—		1,716		1,735
Residential mortgage loans	2		—		2		—		14		9,960		9,976
Tax-exempt loans	—		—		—		—		—		1,311		1,311
Total loans held for investment	$	3	$	—	$	3	$	186	$	28	$	49,833	$	50,050

September 30, 2024
SBL	$	3	$	—	$	3	$	—	$	—	$	16,230	$	16,233
C&I loans	—		—		—		58		—		9,895		9,953
CRE loans	—		—		—		67		18		7,530		7,615
REIT loans	—		—		—		19		—		1,697		1,716
Residential mortgage loans	3		—		3		—		13		9,396		9,412
Tax-exempt loans	—		—		—		—		—		1,338		1,338
Total loans held for investment	$	6	$	—	$	6	$	144	$	31	$	46,086	$	46,267

Loans Pledged as Collateral

The following table presents the amortized cost of our collateral-dependent loans and the nature of the collateral.


$ in millions	Nature of collateral	June 30, 2025		September 30, 2024

C&I loans	Commercial real estate and other business assets	$	14	$	9
CRE loans	Hospitality, office, multi-family residential, industrial, healthcare, and medical office real estate	$	128	$	115

Residential mortgage loans	Single family homes	$	14	$	8

Credit Quality of Held for Investment Loan Portfolio

The following tables present our held for investment bank loan portfolio by credit quality indicator. Loans classified as special mention, substandard or doubtful are all considered to be “criticized” loans.


	As of and for the nine months ended June 30, 2025
	Loans by origination fiscal year
$ in millions	2025		2024		2023		2022		2021		Prior		Revolving loans		Total
SBL
Risk rating:
Pass	$	17	$	118	$	124	$	20	$	62	$	69	$	18,087	$	18,497
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total SBL	$	17	$	118	$	124	$	20	$	62	$	69	$	18,087	$	18,497
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



C&I loans
Risk rating:
Pass	$	574	$	660	$	361	$	1,122	$	799	$	3,745	$	3,340	$	10,601
Special mention	—		—		17		1		—		12		9		39
Substandard	—		1		—		—		—		95		18		114
Doubtful	—		—		—		—		—		—		—		—
Total C&I loans	$	574	$	661	$	378	$	1,123	$	799	$	3,852	$	3,367	$	10,754
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	17	$	—	$	17



CRE loans
Risk rating:
Pass	$	891	$	803	$	1,118	$	1,885	$	698	$	1,575	$	551	$	7,521
Special mention	—		—		25		79		—		1		—		105
Substandard	—		—		58		9		—		61		—		128
Doubtful	—		—		—		—		—		23		—		23
Total CRE loans	$	891	$	803	$	1,201	$	1,973	$	698	$	1,660	$	551	$	7,777
Gross charge offs	$	—	$	—	$	—	$	—	$	—	$	6	$	2	$	8



REIT loans
Risk rating:
Pass	$	69	$	177	$	185	$	106	$	111	$	290	$	662	$	1,600
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		19		—		116		—		—		135
Doubtful	—		—		—		—		—		—		—		—
Total REIT loans	$	69	$	177	$	204	$	106	$	227	$	290	$	662	$	1,735
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Residential mortgage loans
Risk rating:
Pass	$	1,252	$	1,246	$	1,509	$	2,576	$	1,412	$	1,914	$	39	$	9,948
Special mention	—		—		—		1		1		6		—		8
Substandard	—		—		—		8		—		12		—		20
Doubtful	—		—		—		—		—		—		—		—
Total residential mortgage loans	$	1,252	$	1,246	$	1,509	$	2,585	$	1,413	$	1,932	$	39	$	9,976
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Tax-exempt loans
Risk rating:
Pass	$	57	$	62	$	57	$	234	$	145	$	756	$	—	$	1,311
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total tax-exempt loans	$	57	$	62	$	57	$	234	$	145	$	756	$	—	$	1,311
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	As of and for the year ended September 30, 2024
	Loans by origination fiscal year
$ in millions	2024		2023		2022		2021		2020		Prior		Revolving loans		Total
SBL
Risk rating:
Pass	$	131	$	30	$	15	$	76	$	27	$	52	$	15,900	$	16,231
Special mention	—		—		—		—		—		—		—		—
Substandard (1)	2		—		—		—		—		—		—		2
Doubtful	—		—		—		—		—		—		—		—
Total SBL	$	133	$	30	$	15	$	76	$	27	$	52	$	15,900	$	16,233
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—




C&I loans
Risk rating:
Pass	$	616	$	454	$	1,178	$	716	$	586	$	3,287	$	2,966	$	9,803
Special mention	—		4		1		—		54		1		—		60
Substandard	—		—		—		—		46		25		12		83
Doubtful	—		—		—		—		—		5		2		7
Total C&I loans	$	616	$	458	$	1,179	$	716	$	686	$	3,318	$	2,980	$	9,953
Gross charge-offs	$	—	$	—	$	—	$	3	$	4	$	38	$	—	$	45




CRE loans
Risk rating:
Pass	$	873	$	1,156	$	2,082	$	930	$	706	$	1,111	$	435	$	7,293
Special mention	—		30		76		—		14		16		—		136
Substandard	—		58		9		5		9		89		16		186
Doubtful	—		—		—		—		—		—		—		—
Total CRE loans	$	873	$	1,244	$	2,167	$	935	$	729	$	1,216	$	451	$	7,615
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	21	$	—	$	21




REIT loans
Risk rating:
Pass	$	172	$	250	$	167	$	135	$	55	$	195	$	564	$	1,538
Special mention	—		—		—		—		—		—		—		—
Substandard	—		19		—		—		40		—		119		178
Doubtful	—		—		—		—		—		—		—		—
Total REIT loans	$	172	$	269	$	167	$	135	$	95	$	195	$	683	$	1,716
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Residential mortgage loans
Risk rating:
Pass	$	1,373	$	1,637	$	2,725	$	1,493	$	858	$	1,260	$	39	$	9,385
Special mention	—		—		1		1		—		5		—		7
Substandard	—		—		8		—		—		12		—		20
Doubtful	—		—		—		—		—		—		—		—
Total residential mortgage loans	$	1,373	$	1,637	$	2,734	$	1,494	$	858	$	1,277	$	39	$	9,412
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—




Tax-exempt loans
Risk rating:
Pass	$	62	$	57	$	248	$	153	$	52	$	766	$	—	$	1,338
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total tax-exempt loans	$	62	$	57	$	248	$	153	$	52	$	766	$	—	$	1,338
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(1)As of September 30, 2024, these balances related to loans which were collateralized by private securities or other financial instruments with a limited trading market.

The following table presents the held for investment residential mortgage loan portfolio by LTV ratio at origination and by FICO score.


	June 30, 2025
	Loans by origination fiscal year
$ in millions	2025		2024		2023		2022		2021		Prior		Revolving loans		Total
FICO score:
Below 600	$	4	$	5	$	11	$	17	$	7	$	19	$	—	$	63
600 - 699	46		60		67		102		43		94		4		416
700 - 799	991		765		846		1,465		759		1,058		27		5,911
800 +	211		414		585		1,001		602		758		8		3,579
FICO score not available	—		2		—		—		2		3		—		7
Total	$	1,252	$	1,246	$	1,509	$	2,585	$	1,413	$	1,932	$	39	$	9,976

LTV ratio:
Below 80%	$	878	$	899	$	1,071	$	1,977	$	1,120	$	1,487	$	38	$	7,470
80%+	374		347		438		608		293		445		1		2,506
Total	$	1,252	$	1,246	$	1,509	$	2,585	$	1,413	$	1,932	$	39	$	9,976


	September 30, 2024
	Loans by origination fiscal year
$ in millions	2024		2023		2022		2021		2020		Prior		Revolving loans		Total
FICO score:
Below 600	$	1	$	7	$	13	$	5	$	3	$	14	$	—	$	43
600 - 699	79		52		107		52		44		124		5		463
700 - 799	1,093		992		1,564		793		469		636		23		5,570
800 +	197		584		1,050		642		341		499		10		3,323
FICO score not available	3		2		—		2		1		4		1		13
Total	$	1,373	$	1,637	$	2,734	$	1,494	$	858	$	1,277	$	39	$	9,412

LTV ratio:
Below 80%	$	988	$	1,155	$	2,104	$	1,182	$	665	$	973	$	38	$	7,105
80%+	385		482		630		312		193		304		1		2,307
Total	$	1,373	$	1,637	$	2,734	$	1,494	$	858	$	1,277	$	39	$	9,412

Changes in the Allowance for Loan Losses

The following table presents changes in the allowance for credit losses on held for investment bank loans by portfolio segment.


$ in millions	SBL			C&I loans			CRE loans			REIT loans			Residential mortgage loans			Tax-exempt loans			Total
Three months ended June 30, 2025
Balance at beginning of period	$	7		$	171		$	181		$	32		$	60		$	1		$	452


Provision/(benefit) for credit losses	(1)			12			(1)			4			1			—			15

Net (charge-offs)/recoveries:
Charge-offs	—			(4)			—			—			—			—			(4)
Recoveries	—			1			—			—			—			—			1
Net (charge-offs)/recoveries	—			(3)			—			—			—			—			(3)
Foreign exchange translation adjustment	—			1			—			—			—			—			1
Balance at end of period	$	6		$	181		$	180		$	36		$	61		$	1		$	465

Nine months ended June 30, 2025
Balance at beginning of period	$	6		$	173		$	188		$	23		$	65		$	2		$	457


Provision/(benefit) for credit losses	—			23			—			13			(4)			(1)			31

Net (charge-offs)/recoveries:
Charge-offs	—			(17)			(8)			—			—			—			(25)
Recoveries	—			2			1			—			—			—			3
Net (charge-offs)/recoveries	—			(15)			(7)			—			—			—			(22)
Foreign exchange translation adjustment	—			—			(1)			—			—			—			(1)
Balance at end of period	$	6		$	181		$	180		$	36		$	61		$	1		$	465

ACL by loan portfolio segment as a % of total ACL	1.3		%	39.0		%	38.7		%	7.7		%	13.1		%	0.2		%	100.0		%

Three months ended June 30, 2024
Balance at beginning of period	$	6		$	196		$	181		$	19		$	67		$	2		$	471



Provision/(benefit) for credit losses	(1)			(20)			16			1			(6)			—			(10)

Net (charge-offs)/recoveries:
Charge-offs	—			(6)			(1)			—			—			—			(7)
Recoveries	—			—			—			—			1			—			1
Net (charge-offs)/recoveries	—			(6)			(1)			—			1			—			(6)
Foreign exchange translation adjustment	—			—			1			—			—			—			1
Balance at end of period	$	5		$	170		$	197		$	20		$	62		$	2		$	456

Nine months ended June 30, 2024
Balance at beginning of period	$	7		$	214		$	161		$	16		$	74		$	2		$	474



Provision/(benefit) for credit losses	(2)			(9)			43			4			(13)			—			23

Net (charge-offs)/recoveries:
Charge-offs	—			(37)			(8)			—			—			—			(45)
Recoveries	—			2			—			—			1			—			3
Net (charge-offs)/recoveries	—			(35)			(8)			—			1			—			(42)
Foreign exchange translation adjustment	—			—			1			—			—			—			1
Balance at end of period	$	5		$	170		$	197		$	20		$	62		$	2		$	456

ACL by loan portfolio segment as a % of total ACL	1.1		%	37.3		%	43.2		%	4.4		%	13.6		%	0.4		%	100.0		%