v3.25.3
Line of Business Information
 9 Months Ended
Sep. 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 September 30,
Investment
Servicing		Investment
Management		OtherTotal
(Dollars in millions)20252024202520242025202420252024
Revenue:
Servicing fees$1,357 $1,266 $— $— $— $— $1,357 $1,266 
Management fees— — 612 527 — — 612 527 
Foreign exchange trading services364 312 52 47 — 15 416 374 
Securities finance133 111 5 5 — — 138 116 
Software and processing fees227 208 — — — — 227 208 
Other fee revenue
68 48 11 11 — 66 79 125 
Total fee revenue2,149 1,945 680 590 — 81 2,829 2,616 
Net interest income711 716 4 7 — — 715 723 
Total other income1 1 — — — (81)1 (80)
Total revenue2,861 2,662 684 597 — — 3,545 3,259 
Provision for credit losses9 26 — — — — 9 26 
Expenses:
Compensation and employee benefits1,018 997 144 137 — — 1,162 1,134 
Information systems and communications495 439 22 24 — — 517 463 
Transaction processing services229 211 47 44 — — 276 255 
Other252 244 227 212 — — 479 456 
Total expenses1,994 1,891 440 417 — — 2,434 2,308 
Income before income tax expense$858 $745 $244 $180 $— $— $1,102 $925 
Pre-tax margin30.0 %28.0 %35.7 %30.2 %31.1 %28.4 %
Average assets (in billions)$336.9 $311.4 $3.6 $3.2 $340.5 $314.6 
Nine Months Ended September 30,
Investment
Servicing		Investment
Management		OtherTotal
(Dollars in millions)20252024202520242025202420252024
Revenue:
Servicing fees$3,936 $3,733 $— $— $— $— $3,936 $3,733 
Management fees— — 1,736 1,548 — — 1,736 1,548 
Foreign exchange trading services1,091 924 115 102 3 15 1,209 1,041 
Securities finance360 302 18 18 — — 378 320 
Software and processing fees
706 629 — — (24)— 682 629 
Other fee revenue153 127 24 30 — 66 177 223 
Total fee revenue6,246 5,715 1,893 1,698 (21)81 8,118 7,494 
Net interest income2,146 2,157 12 17 — — 2,158 2,174 
Total other income1 1 — — — (81)1 (80)
Total revenue8,393 7,873 1,905 1,715 (21)— 10,277 9,588 
Provision for credit losses51 63 — — — — 51 63 
Expenses:
Compensation and employee benefits3,154 3,065 450 420 100 — 3,704 3,485 
Information systems and communications1,452 1,292 67 57 18 — 1,537 1,349 
Transaction processing services667 624 127 129 — — 794 753 
Other735 753 644 619 (1)131 1,378 1,503 
Total expenses6,008 5,734 1,288 1,225 117 131 7,413 7,090 
Income before income tax expense$2,334 $2,076 $617 $490 $(138)$(131)$2,813 $2,435 
Pre-tax margin27.8 %26.4 %32.4 %28.6 %27.4 %25.4 %
Average assets (in billions)$340.4 $303.4 $3.5 $3.1 $343.9 $306.5 
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 September 30,Nine Months Ended September 30,
OtherOther
(Dollars in millions)2025202420252024
Foreign exchange trading services(1)
$— $15 $3 $15 
Client rescoping (revenue impact)(2)
— — (24)— 
Other fee revenue (3)
— 66 — 66 
(Gains) losses related to investment securities, net(4)
— (81)— (81)
Repositioning charges(5)
— — (100)— 
Client rescoping (expense impact)(2)
— — (18)— 
FDIC special assessment(6)
— — — (130)
Other
— — 1 (1)
Total
$— $— $(138)$(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 consists of a $66 million gain on sale of equity investment, which is reflected in other fee revenue.
(4) Amount consists of a $81 million loss on the sale of investment securities, which is related to the repositioning of the investment portfolio reflected in other income.
(5) 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.
(6) 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.