BANK LOANS, NET (Tables)

6 Months Ended

Mar. 31, 2026

Schedule of Held for investment Loans by Portfolio Segment

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


$ in millions	March 31, 2026			September 30, 2025
SBL	$	23,007		$	19,775
C&I loans	10,489			10,777
CRE loans	7,972			7,840
REIT loans	1,695			1,690
Residential mortgage loans	10,789			10,295
Tax-exempt loans	1,123			1,226
Total loans held for investment	55,075			51,603
Held for sale loans	198			416
Total loans held for sale and investment	55,273			52,019
Allowance for credit losses	(440)			(452)
Bank loans, net	$	54,833		$	51,567

ACL as a % of total loans held for investment	0.80		%	0.88		%
Accrued interest receivable on bank loans (included in “Other receivables, net”)	$	211		$	216

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		Residential mortgage loans		Total
Three months ended March 31, 2026
Purchases	$	123	$	—	$	2	$	125
Sales	$	20	$	—	$	—	$	20
Six months ended March 31, 2026
Purchases	$	288	$	—	$	16	$	304
Sales	$	104	$	—	$	—	$	104
Three months ended March 31, 2025
Purchases	$	404	$	—	$	67	$	471
Sales	$	29	$	13	$	—	$	42
Six months ended March 31, 2025
Purchases	$	646	$	—	$	132	$	778
Sales	$	77	$	13	$	—	$	90

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
March 31, 2026
SBL	$	6	$	—	$	6	$	—	$	—	$	23,001	$	23,007
C&I loans	—		—		—		31		19		10,439		10,489
CRE loans	—		—		—		113		8		7,851		7,972
REIT loans	—		—		—		—		—		1,695		1,695
Residential mortgage loans	2		—		2		—		11		10,776		10,789
Tax-exempt loans	—		—		—		—		—		1,123		1,123
Total loans held for investment	$	8	$	—	$	8	$	144	$	38	$	54,885	$	55,075

September 30, 2025
SBL	$	1	$	—	$	1	$	—	$	—	$	19,774	$	19,775
C&I loans	1		—		1		39		5		10,732		10,777
CRE loans	—		—		—		101		9		7,730		7,840
REIT loans	—		—		—		19		—		1,671		1,690
Residential mortgage loans	5		—		5		—		13		10,277		10,295
Tax-exempt loans	—		—		—		—		—		1,226		1,226
Total loans held for investment	$	7	$	—	$	7	$	159	$	27	$	51,410	$	51,603

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	March 31, 2026		September 30, 2025

C&I loans	Commercial real estate and other business assets	$	17	$	13
CRE loans (1)	Office, hospitality, industrial, multi-family residential, and medical office real estate	$	278	$	165
REIT loans (1)	Office real estate	$	—	$	113
Residential mortgage loans	Single family homes	$	4	$	9

(1) During the six months ended March 31, 2026, a certain loan was reassigned from the REIT loan portfolio to the CRE loan portfolio based on changes in the loan characteristics during the period.

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 six months ended March 31, 2026
	Loans by origination fiscal year
$ in millions	2026		2025		2024		2023		2022		Prior		Revolving loans		Total
SBL
Risk rating:
Pass	$	8	$	15	$	57	$	156	$	24	$	72	$	22,621	$	22,953
Special mention (1)	—		—		—		—		—		—		54		54
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total SBL	$	8	$	15	$	57	$	156	$	24	$	72	$	22,675	$	23,007
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



C&I loans
Risk rating:
Pass	$	336	$	617	$	838	$	330	$	956	$	4,028	$	3,292	$	10,397
Special mention	—		2		—		12		1		—		10		25
Substandard	—		—		1		—		—		43		13		57
Doubtful	—		—		—		—		—		9		1		10
Total C&I loans	$	336	$	619	$	839	$	342	$	957	$	4,080	$	3,316	$	10,489
Gross charge-offs	$	—	$	1	$	—	$	—	$	—	$	—	$	—	$	1



CRE loans
Risk rating:
Pass	$	705	$	1,480	$	633	$	812	$	1,390	$	1,788	$	729	$	7,537
Special mention	—		—		4		26		114		—		—		144
Substandard	—		—		—		51		74		143		—		268
Doubtful	—		—		—		—		—		23		—		23
Total CRE loans	$	705	$	1,480	$	637	$	889	$	1,578	$	1,954	$	729	$	7,972
Gross charge offs	$	—	$	—	$	—	$	—	$	12	$	2	$	—	$	14



REIT loans
Risk rating:
Pass	$	105	$	324	$	68	$	146	$	58	$	297	$	697	$	1,695
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total REIT loans	$	105	$	324	$	68	$	146	$	58	$	297	$	697	$	1,695
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Residential mortgage loans
Risk rating:
Pass	$	1,066	$	1,729	$	1,113	$	1,367	$	2,419	$	3,031	$	38	$	10,763
Special mention	—		—		1		1		3		5		—		10
Substandard	—		—		—		1		5		10		—		16
Doubtful	—		—		—		—		—		—		—		—
Total residential mortgage loans	$	1,066	$	1,729	$	1,114	$	1,369	$	2,427	$	3,046	$	38	$	10,789
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Tax-exempt loans
Risk rating:
Pass	$	55	$	49	$	—	$	57	$	194	$	768	$	—	$	1,123
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total tax-exempt loans	$	55	$	49	$	—	$	57	$	194	$	768	$	—	$	1,123
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(1)As of March 31, 2026, this balance related to a loan which was collateralized by private securities.


	As of and for the year ended September 30, 2025
	Loans by origination fiscal year
$ in millions	2025		2024		2023		2022		2021		Prior		Revolving loans		Total
SBL
Risk rating:
Pass	$	21	$	62	$	30	$	20	$	29	$	43	$	19,485	$	19,690
Special mention (1)	—		—		—		—		—		—		85		85
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total SBL	$	21	$	62	$	30	$	20	$	29	$	43	$	19,570	$	19,775
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—




C&I loans
Risk rating:
Pass	$	746	$	743	$	366	$	1,016	$	849	$	3,495	$	3,455	$	10,670
Special mention	—		—		16		1		—		—		3		20
Substandard	—		1		—		—		2		64		20		87
Doubtful	—		—		—		—		—		—		—		—
Total C&I loans	$	746	$	744	$	382	$	1,017	$	851	$	3,559	$	3,478	$	10,777
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	32	$	1	$	33




CRE loans
Risk rating:
Pass	$	1,333	$	789	$	1,023	$	1,698	$	599	$	1,473	$	612	$	7,527
Special mention	—		—		25		90		—		7		—		122
Substandard	—		—		27		86		—		55		—		168
Doubtful	—		—		—		—		—		23		—		23
Total CRE loans	$	1,333	$	789	$	1,075	$	1,874	$	599	$	1,558	$	612	$	7,840
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	11	$	1	$	12




REIT loans
Risk rating:
Pass	$	289	$	128	$	158	$	59	$	113	$	241	$	570	$	1,558
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		19		—		113		—		—		132
Doubtful	—		—		—		—		—		—		—		—
Total REIT loans	$	289	$	128	$	177	$	59	$	226	$	241	$	570	$	1,690
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Residential mortgage loans
Risk rating:
Pass	$	1,810	$	1,206	$	1,465	$	2,511	$	1,389	$	1,849	$	42	$	10,272
Special mention	—		—		—		1		1		3		—		5
Substandard	—		—		—		6		—		12		—		18
Doubtful	—		—		—		—		—		—		—		—
Total residential mortgage loans	$	1,810	$	1,206	$	1,465	$	2,518	$	1,390	$	1,864	$	42	$	10,295
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	1




Tax-exempt loans
Risk rating:
Pass	$	49	$	62	$	57	$	215	$	144	$	699	$	—	$	1,226
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total tax-exempt loans	$	49	$	62	$	57	$	215	$	144	$	699	$	—	$	1,226
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(1)As of September 30, 2025, this balance related to a loan which was collateralized by private securities.

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


	March 31, 2026
	Loans by origination fiscal year
$ in millions	2026		2025		2024		2023		2022		Prior		Revolving loans		Total
FICO score:
Below 600	$	2	$	5	$	4	$	11	$	16	$	24	$	—	$	62
600 - 699	64		74		57		60		90		120		3		468
700 - 799	791		1,364		698		762		1,366		1,657		28		6,666
800 +	208		286		353		536		955		1,242		7		3,587
FICO score not available	1		—		2		—		—		3		—		6
Total	$	1,066	$	1,729	$	1,114	$	1,369	$	2,427	$	3,046	$	38	$	10,789

LTV ratio:
Below 80%	$	708	$	1,212	$	804	$	968	$	1,864	$	2,364	$	37	$	7,957
80%+	358		517		310		401		563		682		1		2,832
Total	$	1,066	$	1,729	$	1,114	$	1,369	$	2,427	$	3,046	$	38	$	10,789


	September 30, 2025
	Loans by origination fiscal year
$ in millions	2025		2024		2023		2022		2021		Prior		Revolving loans		Total
FICO score:
Below 600	$	5	$	5	$	11	$	17	$	7	$	18	$	—	$	63
600 - 699	74		60		66		96		43		90		5		434
700 - 799	1,424		747		815		1,419		744		1,026		29		6,204
800 +	306		392		572		986		594		727		8		3,585
FICO score not available	1		2		1		—		2		3		—		9
Total	$	1,810	$	1,206	$	1,465	$	2,518	$	1,390	$	1,864	$	42	$	10,295

LTV ratio:
Below 80%	$	1,271	$	874	$	1,037	$	1,926	$	1,100	$	1,432	$	41	$	7,681
80%+	539		332		428		592		290		432		1		2,614
Total	$	1,810	$	1,206	$	1,465	$	2,518	$	1,390	$	1,864	$	42	$	10,295

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 (1)			REIT loans (1)			Residential mortgage loans			Tax-exempt loans			Total
Three months ended March 31, 2026
Balance at beginning of period	$	7		$	146		$	176		$	48		$	62		$	1		$	440


Provision/(benefit) for credit losses	(1)			(2)			36			(29)			1			—			5

Net (charge-offs)/recoveries:
Charge-offs	—			—			(6)			—			—			—			(6)
Recoveries	—			—			—			—			1			—			1
Net (charge-offs)/recoveries	—			—			(6)			—			1			—			(5)
Foreign exchange translation adjustment	—			—			—			—			—			—			—
Balance at end of period	$	6		$	144		$	206		$	19		$	64		$	1		$	440

Six months ended March 31, 2026
Balance at beginning of period	$	8		$	148		$	182		$	52		$	61		$	1		$	452


Provision/(benefit) for credit losses	(2)			(3)			38			(33)			2			—			2

Net (charge-offs)/recoveries:
Charge-offs	—			(1)			(14)			—			—			—			(15)
Recoveries	—			—			—			—			1			—			1
Net (charge-offs)/recoveries	—			(1)			(14)			—			1			—			(14)
Foreign exchange translation adjustment	—			—			—			—			—			—			—
Balance at end of period	$	6		$	144		$	206		$	19		$	64		$	1		$	440

ACL by loan portfolio segment as a % of total ACL	1.4		%	32.8		%	46.8		%	4.3		%	14.5		%	0.2		%	100.0		%

Three months ended March 31, 2025
Balance at beginning of period	$	5		$	176		$	177		$	27		$	65		$	2		$	452



Provision/(benefit) for credit losses	2			4			11			5			(5)			(1)			16

Net (charge-offs)/recoveries:
Charge-offs	—			(9)			(8)			—			—			—			(17)
Recoveries	—			1			1			—			—			—			2
Net (charge-offs)/recoveries	—			(8)			(7)			—			—			—			(15)
Foreign exchange translation adjustment				(1)			—			—			—			—			(1)
Balance at end of period	$	7		$	171		$	181		$	32		$	60		$	1		$	452

Six months ended March 31, 2025
Balance at beginning of period	$	6		$	173		$	188		$	23		$	65		$	2		$	457



Provision/(benefit) for credit losses	1			11			1			9			(5)			(1)			16

Net (charge-offs)/recoveries:
Charge-offs	—			(13)			(8)			—			—						(21)
Recoveries	—			1			1			—			—						2
Net charge-offs	—			(12)			(7)			—			—			—			(19)
Foreign exchange translation adjustment	—			(1)			(1)			—			—						(2)
Balance at end of period	$	7		$	171		$	181		$	32		$	60		$	1		$	452

ACL by loan portfolio segment as a % of total ACL	1.5		%	37.9		%	40.0		%	7.1		%	13.3		%	0.2		%	100.0		%

(1) During the three and six months ended March 31, 2026, a certain loan was reassigned from the REIT loan portfolio to the CRE loan portfolio based on changes in the loan characteristics during the period.