v3.25.3
Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments, including those entered into for trading and asset and liability management activities as of the dates indicated:
(In millions)September 30, 2025December 31, 2024
Derivatives not designated as hedging instruments:
Interest rate contracts:
Futures$80,367 $47,222 
Foreign exchange contracts:
Forward, swap and spot2,836,639 2,612,945 
Options purchased827 466 
Options written144 145 
Futures98 359 
Other:
Futures148 155 
Stable value contracts(1)
15,857 25,271 
Deferred value awards(2)
251 253 
Derivatives designated as hedging instruments:
Interest rate contracts:
Swap agreements40,567 33,302 
Foreign exchange contracts:
Forward and swap12,473 10,260 
(1) The notional value of the stable value contracts represents our maximum exposure. However, exposure to various stable value contracts is generally contractually limited to substantially lower amounts than the notional values.
(2) Represents grants of deferred value awards to employees; refer to page 151 in Note 10 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
Schedule of Derivative Liabilities at Fair Value
The following table presents the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 8.
Derivative Assets(1)
Derivative Liabilities(2)
(In millions)September 30, 2025December 31, 2024September 30, 2025December 31, 2024
Derivatives not designated as hedging instruments:
Foreign exchange contracts$10,852 $29,116 $10,642 $28,904 
Other derivative contracts— 1 178 219 
Total$10,852 $29,117 $10,820 $29,123 
Derivatives designated as hedging instruments:
Foreign exchange contracts$22 $323 $67 $— 
Interest rate contracts35 28 3 1 
Total$57 $351 $70 $1 
(1) Derivative assets are included within other assets in our consolidated statement of condition.
(2) Derivative liabilities are included within accrued expenses and other liabilities in our consolidated statement of condition.
Schedule of Derivative Assets at Fair Value
The following table presents the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 8.
Derivative Assets(1)
Derivative Liabilities(2)
(In millions)September 30, 2025December 31, 2024September 30, 2025December 31, 2024
Derivatives not designated as hedging instruments:
Foreign exchange contracts$10,852 $29,116 $10,642 $28,904 
Other derivative contracts— 1 178 219 
Total$10,852 $29,117 $10,820 $29,123 
Derivatives designated as hedging instruments:
Foreign exchange contracts$22 $323 $67 $— 
Interest rate contracts35 28 3 1 
Total$57 $351 $70 $1 
(1) Derivative assets are included within other assets in our consolidated statement of condition.
(2) Derivative liabilities are included within accrued expenses and other liabilities in our consolidated statement of condition.
Impact of Derivative Financial Instruments On Statement of Income
The following table presents the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(In millions)Location of Gain (Loss) on Derivative in Consolidated Statement of IncomeAmount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
Derivatives not designated as hedging instruments:
Foreign exchange contractsForeign exchange trading services revenue$274 $230 $786 $645 
Foreign exchange contractsInterest expense38 82 163 195 
Interest rate contractsForeign exchange trading services revenue(9)2 3 11 
Other derivative contractsOther fee revenue(6)(10)(10)(13)
Other derivative contractsCompensation and employee benefits(16)(22)(67)(94)
Total$281 $282 $875 $744 
The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:
Three Months Ended September 30,Three Months Ended September 30,
2025202420252024
(In millions)Location of Gain (Loss) on Derivative in Consolidated Statement of IncomeAmount of Gain
(Loss) on Derivative
Recognized in
Consolidated
Statement of Income		Hedged Item in Fair Value Hedging RelationshipLocation of Gain (Loss) on Hedged Item in Consolidated Statement of IncomeAmount of Gain
(Loss) on Hedged
Item Recognized in
Consolidated
Statement of Income
Derivatives designated as fair value hedges:
Interest rate contractsNet interest income$(37)$(521)
Available-for-sale securities(1)
Net interest income
$37 $522 
Interest rate contractsNet interest income31 195 Long-term debtNet interest income(31)(195)
Foreign exchange contractsOther fee revenue(12)18 
Available-for-sale securities
Other fee revenue12 (18)
Total$(18)$(308)$18 $309 
Nine Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(In millions)Location of Gain (Loss) on Derivative in Consolidated Statement of IncomeAmount of Gain
(Loss) on Derivative
Recognized in
Consolidated
Statement of Income		Hedged Item in Fair Value Hedging RelationshipLocation of Gain (Loss) on Hedged Item in Consolidated Statement of IncomeAmount of Gain
(Loss) on Hedged
Item Recognized in
Consolidated
Statement of Income
Derivatives designated as fair value hedges:
Interest rate contractsNet interest income$(425)$(478)
Available-for-sale securities(2)
Net interest income$425 $479 
Interest rate contractsNet interest income276 159 Long-term debtNet interest income(276)(159)
Foreign exchange contractsOther fee revenue(13)23 
Available-for-sale securities
Other fee revenue13 (23)
Total$(162)$(296)$162 $297 
(1) In the three months ended September 30, 2025, approximately $31 million of net unrealized losses on AFS investment securities designated in fair value hedges were recognized in OCI compared to $436 million of net unrealized losses in the same period of 2024.
(2) In the nine months ended September 30, 2025, approximately $351 million of net unrealized losses on AFS investment securities designated in fair value hedges were recognized in OCI compared to $404 million of net unrealized losses in the same period of 2024.
Three Months Ended September 30,Three Months Ended September 30,
20252024Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income20252024
(In millions)Amount of Gain or (Loss) Recognized in Other Comprehensive Income on DerivativeAmount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives designated as cash flow hedges:
Interest rate contracts(1)
$(14)$15 Net interest income$(34)$(51)
Total derivatives designated as cash flow hedges$(14)$15 $(34)$(51)
Derivatives designated as net investment hedges:
Foreign exchange contracts$86 $(265)$— $— 
Total derivatives designated as net investment hedges86 (265)— — 
Total$72 $(250)$(34)$(51)
Nine Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(In millions)Amount of Gain or (Loss) Recognized in Other Comprehensive Income on DerivativeLocation of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into IncomeAmount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives designated as cash flow hedges:
Interest rate contracts(1)
$(2)$(6)Net interest income$(107)$(160)
Foreign exchange contracts— 59 Net interest income— 254 
Total derivatives designated as cash flow hedges$(2)$53 $(107)$94 
Derivatives designated as net investment hedges:
Foreign exchange contracts$(821)$(22)$— $— 
Total derivatives designated as net investment hedges(821)(22)— — 
Total$(823)$31 $(107)$94 
(1) As of September 30, 2025, the maximum maturity date of the underlying hedged items is approximately 5.0 years.
Schedule of Derivatives
The following table shows the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships:
September 30, 2025
Cumulative Fair Value Hedging Adjustment Increasing (Decreasing) the Carrying Amount
(In millions)Carrying Amount of Hedged Assets/LiabilitiesActive
De-designated(1)
Long-term debt$15,056 $(47)$77 
Available-for-sale securities(2)(3)
21,855 85 — 
December 31, 2024
Cumulative Fair Value Hedging Adjustment Increasing (Decreasing) the Carrying Amount
(In millions)Carrying Amount of Hedged Assets/LiabilitiesActive
De-designated(1)
Long-term debt$15,951 $(323)$103 
Available-for-sale securities(2)(3)
18,666 (376)1 
(1) Represents hedged items no longer designated in qualifying fair value hedging relationships for which an associated basis adjustment exists at the balance sheet date.
(2) Included in these amounts is the amortized cost of the financial assets designated under the portfolio layer hedging relationships (hedged item is the hedged layer of a closed portfolio of financial assets expected to remain outstanding at the end of the hedging relationship). At September 30, 2025 and December 31, 2024, the amortized cost of the closed portfolios used in these hedging relationships was $3.59 billion and $3.32 billion, respectively, of which $1.82 billion and $1.82 billion, respectively, was designated under the portfolio layer hedging relationship for both periods. At September 30, 2025 and December 31, 2024, the cumulative adjustment associated with these hedging relationships was $29 million and ($26) million, respectively.
(3) Carrying amount represents amortized cost.