v3.26.1
Derivatives (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Notional or Contractual Amounts and Fair Values of Derivatives
Table 10.1 presents the total notional or contractual amounts and fair values for our derivatives. Derivative transactions can be measured in terms of the notional amount, but this amount is not recognized on our consolidated balance sheet and is not, when viewed in isolation, a meaningful measure of the risk profile of the instruments. The notional amount is generally not exchanged, but is used only as the basis on which derivative cash flows are determined.
Table 10.1: Notional or Contractual Amounts and Fair Values of Derivatives
June 30, 2026December 31, 2025
Notional or contractual amountFair value Notional or contractual amountFair value 
Derivative assetsDerivative liabilitiesDerivative assetsDerivative liabilities
(in millions)
Derivatives designated as hedging instruments
Interest rate contracts$522,894 555 1,165 377,837 447 852 
Commodity contracts17,554 23 27 8,854 2 279 
Foreign exchange contracts5,432 6 286 6,455 24 180 
Total derivatives designated as qualifying hedging instruments584 1,478 473 1,311 
Derivatives not designated as hedging instruments
Interest rate contracts11,475,877 19,620 20,640 11,919,067 21,896 21,923 
Commodity contracts162,959 7,220 4,292 117,863 3,245 4,126 
Equity contracts701,879 28,194 29,867 634,436 20,788 22,714 
Foreign exchange contracts6,496,069 57,357 55,745 5,601,838 38,047 36,797 
Credit contracts66,808 135 110 62,336 81 85 
Total derivatives not designated as hedging instruments112,526 110,654 84,057 85,645 
Total derivatives before netting113,110 112,132 84,530 86,956 
Netting(88,362)(96,911)(62,720)(73,332)
Total$24,748 15,221 21,810 13,624 
Offsetting of Derivative Assets and Liabilities
Table 10.2 provides information on the fair values of derivative assets and liabilities subject to legally enforceable master netting arrangements with the same counterparty, the balance sheet netting adjustments and the resulting net fair value amount recognized on our consolidated balance sheet, as well as the non-cash collateral associated with such arrangements. In addition to the netting amounts included in the table, we also have balance sheet netting related to resale and repurchase agreements that are disclosed within Note 14 (Securities Financing Activities).
Table 10.2: Offsetting of Derivative Assets and Liabilities
June 30, 2026December 31, 2025
(in millions)Derivative AssetsDerivative LiabilitiesDerivative AssetsDerivative Liabilities
 Interest rate contracts
 Over-the-counter (OTC)
$19,157 20,314 20,594 20,835 
 OTC cleared
400 368 445 366 
 Exchange traded
21 7 58 65 
 Total interest rate contracts19,578 20,689 21,097 21,266 
 Commodity contracts
 OTC
3,484 3,513 2,432 3,764 
 Exchange traded
2,982 512 405 252 
 Total commodity contracts6,466 4,025 2,837 4,016 
 Equity contracts
 OTC
8,712 15,544 6,836 12,149 
 Exchange traded
17,204 11,911 12,274 8,476 
 Total equity contracts25,916 27,455 19,110 20,625 
 Foreign exchange contracts
 OTC
56,931 55,740 37,437 36,757 
 Total foreign exchange contracts56,931 55,740 37,437 36,757 
 Credit contracts
 OTC
126 99 81 83 
 Total credit contracts126 99 81 83 
Total derivatives subject to enforceable master netting arrangements, gross109,017 108,008 80,562 82,747 
 Less: Gross amounts offset
 Counterparty netting (1)(82,047)(81,898)(57,957)(57,777)
 Cash collateral netting(6,315)(15,013)(4,763)(15,555)
Total derivatives subject to enforceable master netting arrangements, net20,655 11,097 17,842 9,415 
Derivatives not subject to enforceable master netting arrangements4,093 4,124 3,968 4,209 
Total derivatives recognized in consolidated balance sheet, net24,748 15,221 21,810 13,624 
 Non-cash collateral(5,144)(3,305)(4,906)(3,091)
Total derivatives, net$19,604 11,916 16,904 10,533 
(1)Represents amounts with counterparties subject to enforceable master netting arrangements that have been offset on our consolidated balance sheet, including portfolio level valuation adjustments related to customer accommodation and other trading derivatives. These valuation adjustments were substantially all related to interest rate and foreign exchange contracts. Table 10.7 and Table 10.8 present information related to derivative valuation adjustments.
Gains (Losses) Recognized on Cash Flow Hedging Relationships
Table 10.3 and Table 10.4 show the net gains (losses) related to derivatives in cash flow and fair value hedging relationships, respectively.
Table 10.3: Gains (Losses) Recognized on Cash Flow Hedging Relationships
Net interest income
Total recognized in net income
Total recognized in OCI
(in millions)
Interest-earning deposits with banks (1)
LoansLong-term debtDerivative gains (losses)Derivative gains (losses)
Quarter ended June 30, 2026
Total amounts presented in the consolidated statement of income and other comprehensive income$1,351 14,301 (2,386)N/A(675)
Interest rate contracts:
Realized gains (losses) (pre-tax) reclassified from OCI into net income(36)(31)— (67)67 
Net unrealized gains (losses) (pre-tax) recognized in OCIN/AN/AN/AN/A(743)
Total gains (losses) (pre-tax) on interest rate contracts(36)(31)— (67)(676)
Foreign exchange contracts:
Realized gains (losses) (pre-tax) reclassified from OCI into net income— — (1)(1)1 
Net unrealized gains (losses) (pre-tax) recognized in OCIN/AN/AN/AN/A— 
Total gains (losses) (pre-tax) on foreign exchange contracts— — (1)(1)1 
Total gains (losses) (pre-tax) recognized on cash flow hedges$(36)(31)(1)(68)(675)
Quarter ended June 30, 2025
Total amounts presented in the consolidated statement of income and other comprehensive income (1)$1,353 13,573 (2,609)N/A448 
Interest rate contracts:
Realized gains (losses) (pre-tax) reclassified from OCI into net income(58)(105)— (163)163 
Net unrealized gains (losses) (pre-tax) recognized in OCIN/AN/AN/AN/A279 
Total gains (losses) (pre-tax) on interest rate contracts(58)(105)— (163)442 
Foreign exchange contracts:
Realized gains (losses) (pre-tax) reclassified from OCI into net income— — (1)(1)1 
Net unrealized gains (losses) (pre-tax) recognized in OCIN/AN/AN/AN/A— 
Total gains (losses) (pre-tax) on foreign exchange contracts— — (1)(1)1 
Total gains (losses) (pre-tax) recognized on cash flow hedges$(58)(105)(1)(164)443 
Six months ended June 30, 2026
Total amounts presented in the consolidated statement of income and other comprehensive income
$2,619 28,110 (4,772)N/A(1,140)
Interest rate contracts:
Realized gains (losses) (pre-tax) reclassified from OCI into net income(74)(72)— (146)146 
Net unrealized gains (losses) (pre-tax) recognized in OCIN/AN/AN/AN/A(1,300)
Total gains (losses) (pre-tax) on interest rate contracts(74)(72)— (146)(1,154)
Foreign exchange contracts:
Realized gains (losses) (pre-tax) reclassified from OCI into net income— — (2)(2)2 
Net unrealized gains (losses) (pre-tax) recognized in OCIN/AN/AN/AN/A— 
Total gains (losses) (pre-tax) on foreign exchange contracts— — (2)(2)2 
Total gains (losses) (pre-tax) recognized on cash flow hedges$(74)(72)(2)(148)(1,152)
Six months ended June 30, 2025
Total amounts presented in the consolidated statement of income and other comprehensive income (1)$2,826 26,930 (5,191)N/A1,041 
Interest rate contracts:
Realized gains (losses) (pre-tax) reclassified from OCI into net income(113)(190)— (303)303 
Net unrealized gains (losses) (pre-tax) recognized in OCIN/AN/AN/AN/A723 
Total gains (losses) (pre-tax) on interest rate contracts(113)(190)— (303)1,026 
Foreign exchange contracts:
Realized gains (losses) (pre-tax) reclassified from OCI into net income— — (3)(3)3 
Net unrealized gains (losses) (pre-tax) recognized in OCIN/AN/AN/AN/A— 
Total gains (losses) (pre-tax) on foreign exchange contracts— — (3)(3)3 
Total gains (losses) (pre-tax) recognized on cash flow hedges$(113)(190)(3)(306)1,029 
(1)In fourth quarter 2025, we changed the presentation of certain items on our consolidated balance sheet, including trading assets and liabilities, with corresponding changes to our consolidated statement of income. Prior period balances have been revised to conform with the current period presentation. For additional information, see Note 1 (Summary of Significant Accounting Policies).
Gains (Losses) Recognized on Fair Value Hedging Relationships
Table 10.4: Gains (Losses) Recognized on Fair Value Hedging Relationships
Net interest incomeNoninterest incomeTotal recognized in net incomeTotal recognized in OCI
(in millions)
Available-for-sale and held-to-maturity debt securities (1)
DepositsLong-term debt
Net gains from trading and securities (1)
Derivative gains (losses)Derivative gains (losses)
Quarter ended June 30, 2026
Total amounts presented in the consolidated statement of income and other comprehensive income
$3,708 (5,516)(2,386)2,241 N/A(675)
Interest rate contracts
Amounts related to cash flows on derivatives
3 11 (190)— (176)N/A
Recognized on derivatives920 (128)(677)— 115 — 
Recognized on hedged items(918)127 686 — (105)N/A
Total gains (losses) (pre-tax) on interest rate contracts5 10 (181)— (166)— 
Foreign exchange contracts
Amounts related to cash flows on derivatives
— — (22)— (22)N/A
Recognized on derivatives— — 28 (40)(12)— 
Recognized on hedged items— — (32)40 8 N/A
Total gains (losses) (pre-tax) on foreign exchange contracts— — (26)— (26)— 
Commodity contracts
Recognized on derivatives— — — 1,519 1,519 — 
Recognized on hedged items— — — (1,178)(1,178)N/A
Total gains (losses) (pre-tax) on commodity contracts— — — 341 341 — 
Total gains (losses) (pre-tax) recognized on fair value hedges
$5 10 (207)341 149 — 
Quarter ended June 30, 2025
Total amounts presented in the consolidated statement of income and other comprehensive income (1)$3,455 (5,061)(2,609)1,495 N/A448 
Interest rate contracts
Amounts related to cash flows on derivatives
84 — (502)— (418)N/A
Recognized on derivatives(405)15 963 — 573 — 
Recognized on hedged items403 (15)(980)— (592)N/A
Total gains (losses) (pre-tax) on interest rate contracts82 — (519)— (437)— 
Foreign exchange contracts
Amounts related to cash flows on derivatives
— — (16)— (16)N/A
Recognized on derivatives— — 16 41 57 5 
Recognized on hedged items— — (22)(40)(62)N/A
Total gains (losses) (pre-tax) on foreign exchange contracts— — (22)1 (21)5 
Commodity contracts
Recognized on derivatives— — — (539)(539)— 
Recognized on hedged items— — — 646 646 N/A
Total gains (losses) (pre-tax) on commodity contracts— — — 107 107 — 
Total gains (losses) (pre-tax) recognized on fair value hedges$82 — (541)108 (351)5 

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Net interest income
Noninterest income
Total recognized in net income
Total recognized in OCI
(in millions)
Available-for-sale and held-to-maturity debt securities (1)
DepositsLong-term debt
Net gains from trading and securities (1)
Derivative gains (losses)Derivative gains (losses)
Six months ended June 30, 2026
Total amounts presented in the consolidated statement of income
and other comprehensive income
$7,252 (10,490)(4,772)3,764 N/A(1,140)
Interest rate contracts
Amounts related to cash flows on derivatives28 30 (408)— (350)N/A
Recognized on derivatives1,437 (277)(1,139)— 21 — 
Recognized on hedged items(1,433)279 1,149 — (5)N/A
Total gains (losses) (pre-tax) on interest rate contracts32 32 (398)— (334)— 
Foreign exchange contracts
Amounts related to cash flows on derivatives5 — (44)— (39)N/A
Recognized on derivatives— — (21)(81)(102)12 
Recognized on hedged items— — 12 81 93 N/A
Total gains (losses) (pre-tax) on foreign exchange contracts5 — (53)— (48)12 
Commodity contracts
Recognized on derivatives— — — 2,019 2,019 — 
Recognized on hedged items— — — (1,687)(1,687)N/A
Total gains (losses) (pre-tax) on commodity contracts— — — 332 332 — 
Total gains (losses) (pre-tax) recognized on fair value hedges$37 32 (451)332 (50)12 
Six months ended June 30, 2025
Total amounts presented in the consolidated statement of income
and other comprehensive income (1)
$6,776 (10,270)(5,191)2,389 N/A1,041 
Interest rate contracts
Amounts related to cash flows on derivatives148 25 (1,038)— (865)N/A
Recognized on derivatives(977)56 3,007 — 2,086 — 
Recognized on hedged items971 (57)(3,035)— (2,121)N/A
Total gains (losses) (pre-tax) on interest rate contracts142 24 (1,066)— (900)— 
Foreign exchange contracts
Amounts related to cash flows on derivatives— — (34)— (34)N/A
Recognized on derivatives— — 15 77 92 12 
Recognized on hedged items— — (27)(76)(103)N/A
Total gains (losses) (pre-tax) on foreign exchange contracts— — (46)1 (45)12 
Commodity contracts
Recognized on derivatives— — — (1,877)(1,877)— 
Recognized on hedged items— — — 1,995 1,995 N/A
Total gains (losses) (pre-tax) on commodity contracts— — — 118 118 — 
Total gains (losses) (pre-tax) recognized on fair value hedges$142 24 (1,112)119 (827)12 
(1)In fourth quarter 2025, we changed the presentation of certain items on our consolidated balance sheet, including trading assets and liabilities, with corresponding changes to our consolidated statement of income. Prior period balances have been revised to conform with the current period presentation. For additional information, see Note 1 (Summary of Significant Accounting Policies).
Hedged Items in Fair Value Hedging Relationships
Table 10.5 shows the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships.
Table 10.5: Hedged Items in Fair Value Hedging Relationships
Hedged items currently designatedHedged items no longer designated
(in millions)
Carrying amount
of assets/(liabilities) (1)(2)
Hedge accounting
basis adjustment
assets/(liabilities) (3)
Carrying amount
of assets/(liabilities) (1)(2)
Hedge accounting
basis adjustment
assets/(liabilities)
June 30, 2026
Available-for-sale debt securities (4)(5)$125,871 (1,707)23,778 257 
Trading assets (6)12,978 (531)— — 
Interest-bearing deposits
(93,116)149 — — 
Long-term debt(155,785)10,902 — — 
December 31, 2025
Available-for-sale debt securities (4)(5)
$94,388 (698)21,489 285 
Trading assets (6)9,107 1,726 — — 
Interest-bearing deposits
(64,595)(130)— — 
Long-term debt(154,397)9,825 — — 
(1)Does not include the carrying amount of hedged items where only foreign currency risk is the designated hedged risk. The carrying amount excluded $0 and $892 million for AFS debt securities where only foreign currency risk is the designated hedged risk as of June 30, 2026, and December 31, 2025, respectively.
(2)Represents the full carrying amount of the hedged asset or liability item as of the balance sheet date, except for circumstances in which only a portion of the asset or liability was designated as the hedged item in which case only the portion designated is presented.
(3)The balance includes $(470) million, $(36) million, and $453 million of AFS debt securities, trading assets, and long-term debt cumulative basis adjustments, respectively, as of June 30, 2026, and $10 million, $100 million, and $455 million of AFS debt securities, trading assets, and long-term debt cumulative basis adjustments, respectively, as of December 31, 2025, on terminated hedges whereby the hedged items have subsequently been re-designated into existing hedges.
(4)Carrying amount represents the amortized cost.
(5)At June 30, 2026, and December 31, 2025, the amortized cost of closed portfolios of AFS debt securities using the portfolio layer method was $52.4 billion and $43.2 billion, respectively, of which $19.8 billion and $15.3 billion was designated as hedged, respectively. The balance includes cumulative basis adjustments of $(181) million and $75 million as of June 30, 2026, and December 31, 2025, respectively, related to certain AFS debt securities designated as the hedged item in a fair value hedge using the portfolio layer method.
(6)Trading assets consists of hedged physical commodities inventory.
Gains (Losses) on Economic Hedge and Other Derivatives
Table 10.6 shows the net gains (losses) related to economic hedge and other derivatives. Gains (losses) on customer accommodation trading derivatives are excluded from
Table 10.6. See Note 17 (Revenue and Expenses) for additional information on net gains and (losses) from trading activities.
Table 10.6: Gains (Losses) on Economic Hedge and Other Derivatives
Quarter ended June 30,Six months ended June 30,
(in millions)2026202520262025
Interest rate contracts (1)$(43)22 $(17)245 
Equity contracts (2)499 280 417 48 
Foreign exchange contracts (3)45 (461)454 (745)
Credit contracts (4)(30)(38)(35)(43)
Net gains (losses) recognized related to economic hedge derivatives$471 (197)$819 (495)
(1)Includes economic hedge and other derivative gains and (losses) related to mortgage banking activities, which were recognized in mortgage banking noninterest income. These activities include derivative loan commitments and hedges of residential MSRs, residential mortgage LHFS, derivative loan commitments, and other interests held. For additional information on our mortgage banking interest rate contracts, see Note 6 (Mortgage Banking Activities). Other derivative gains and (losses) not related to mortgage banking were recognized in other noninterest income.
(2)Includes derivative gains and (losses) used to economically hedge the deferred compensation plan liabilities, which were recognized in personnel noninterest expense, and other derivative instruments related to our previous sales of shares of Visa Inc. Class B common stock, which were recognized in other noninterest income.
(3)Includes derivatives used to mitigate foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and (losses) were recognized in net gains from trading and securities within noninterest income.
(4)Includes credit derivatives used to hedge certain loan exposures. Gains and (losses) were recognized in other noninterest income.
Net Gains (Losses) from Derivative Valuation Adjustments
Table 10.7 presents the impact of derivative valuation adjustments (excluding the effect of any related hedges), which are included in net gains (losses) from trading and securities on the consolidated statement of income. For additional information, see Note 17 (Revenue and Expenses).
Table 10.7: Net Gains (Losses) from Derivative Valuation Adjustments
Quarter ended June 30,Six months ended June 30,
(in millions)2026202520262025
CVA$45 (36)$(17)(59)
DVA(30)10 49 (8)
FVA7 (26)(2)(47)
Total$22 (52)$30 (114)
Derivative Valuation Adjustments
Table 10.8 presents the impact of derivative valuation adjustments on derivative fair values.
Table 10.8: Derivative Valuation Adjustments
Contra Liability (Contra Asset)
(in millions)Jun 30,
2026		Dec 31,
2025
CVA
$(303)(286)
DVA
248 200 
FVA, net(94)(93)
Total derivative valuation adjustments$(149)(179)
Sold Credit Derivatives
Table 10.9 provides details of sold credit derivatives.
Table 10.9: Sold Credit Derivatives
Credit protection sold – Notional amount
(in millions)
Total
Non-investment grade
June 30, 2026
Credit default swaps$15,980 1,261 
Risk participation swaps6,406 4,164 
Total credit derivatives$22,386 5,425 
December 31, 2025
Credit default swaps$12,568 922 
Risk participation swaps6,208 4,052 
Total credit derivatives$18,776 4,974 
Credit-Risk Contingent Features Table 10.10 illustrates our exposure to OTC bilateral derivative contracts with credit-risk contingent features, collateral we have posted, and the additional collateral we would be required to post if the credit rating of our debt was downgraded below investment grade.
Table 10.10: Credit-Risk Contingent Features
(in billions)Jun 30,
2026		Dec 31,
2025
Net derivative liabilities with credit-risk contingent features$28.0 26.3 
Collateral posted23.9 22.7 
Additional collateral to be posted upon a below investment grade credit rating (1)4.1 3.7 
(1)Any credit rating below investment grade requires us to post the maximum amount of collateral.