v3.26.1
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2026
Credit Loss [Abstract]  
Net Loans
The following table presents our recorded investment in loans, as of the dates indicated:
(In millions)June 30, 2026December 31, 2025
Subscription finance$15,718 $13,138 
Fund finance(1)
11,381 10,916 
Collateralized loan obligations(2)
13,590 12,809 
Commercial1,599 2,851 
Commercial real estate2,291 2,471 
Overdrafts5,244 1,962 
Other(3)
2,239 2,635 
Total loans(4)(5)
52,062 46,782 
Allowance for credit losses(161)(193)
Loans, net of allowance$51,901 $46,589 
(1) Fund finance loans primarily include loans to real money funds and business development companies of $8.93 billion and $1.53 billion, respectively, as of June 30, 2026, compared to $8.30 billion and $1.75 billion, respectively, as of December 31, 2025.
(2) CLOs include broadly syndicated and middle market CLO loans of $10.69 billion and $2.90 billion, respectively, as of June 30, 2026, compared to $10.30 billion and $2.51 billion, respectively, as of December 31, 2025.
(3) Includes securities finance loans and loans to municipalities of $2.15 billion and $0.09 billion, respectively, as of June 30, 2026, compared to $2.52 billion and $0.12 billion, respectively, as of December 31, 2025.
(4) Excluding overdrafts, floating rate loans and fixed rate loans totaled $44.49 billion and $2.33 billion, respectively, as of June 30, 2026. We have entered into interest rate swap agreements to hedge the forecasted cash flows associated with EURIBOR indexed floating-rate loans. Refer to Note 10 of the notes to consolidated financial statements in our 2025 Form 10-K for additional details.
(5) Non-U.S. loans totaled $21.82 billion and $18.78 billion as of June 30, 2026 and December 31, 2025, respectively.
Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator
The following tables present our recorded investment in loans to counterparties by risk rating, as noted above, as of the dates indicated:
June 30, 2026Commercial and FinancialCommercial Real EstateTotal Loans
(In millions)
Investment grade$47,874 $1,278 $49,152 
Sub-investment grade
1,741 628 2,369 
Special mention64 92 156 
Substandard— 121 121 
Doubtful— 172 172 
Total(1)(2)
$49,679 $2,291 $51,970 
December 31, 2025Commercial and FinancialCommercial Real EstateTotal Loans 
(In millions)
Investment grade$40,854 $1,402 $42,256 
Sub-investment grade
3,157 641 3,798 
Special mention110 132 242 
Substandard48 165 213 
Doubtful50 131 181 
Total(1)(2)
$44,219 $2,471 $46,690 
(1) Loans include $5.24 billion and $1.96 billion of overdrafts as of June 30, 2026 and December 31, 2025, respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us. As of June 30, 2026, $5.07 billion overdrafts were investment grade and $0.17 billion overdrafts were sub-investment grade.
(2) Total does not include $92 million of loans classified as held-for-sale as of both June 30, 2026 and December 31, 2025.
The following table presents the amortized cost basis, by year of origination and credit quality indicator, as of June 30, 2026. For origination years before the fifth annual period, we present the aggregate amortized cost basis of loans. For purchased loans, the date of issuance is used to determine the year of origination, not the date of acquisition. For modified, extended or renewed lending arrangements, we evaluate whether a credit event has occurred which would consider the loan to be a new arrangement.
(In millions)20262025202420232022PriorRevolving Loans
Total(1)
Commercial and financial:
Risk Rating:
Investment grade$8,349 $6,852 $3,702 $110 $283 $958 $27,620 $47,874 
Sub-investment grade
173 337 798 33 34 70 296 1,741 
Special mention4 — 26 34 — — — 64 
Total commercial and financial$8,526 $7,189 $4,526 $177 $317 $1,028 $27,916 $49,679 
Commercial real estate:
Risk Rating:
Investment grade$— $— $41 $166 $242 $829 $— $1,278 
Sub-investment grade
— — — 47 27 554 — 628 
Special mention— 69 — — — 23 — 92 
Substandard— — — — — 121 — 121 
Doubtful— — — — — 172 — 172 
Total commercial real estate$— $69 $41 $213 $269 $1,699 $— $2,291 
Total loans(2)
$8,526 $7,258 $4,567 $390 $586 $2,727 $27,916 $51,970 
(1) Any reserve associated with accrued interest is not material. As of June 30, 2026, accrued interest receivable of $284 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
(2) Total does not include $92 million of loans classified as held-for-sale as of June 30, 2026.
The following table presents the amortized cost basis, by year of origination and credit quality indicator as of December 31, 2025:
(In millions)20252024202320222021PriorRevolving Loans
Total(1)
Commercial and financial:
Risk Rating:
Investment grade$8,896 $4,153 $692 $504 $1,313 $119 $25,177 $40,854 
Sub-investment grade
911 1,224 109 46 133 111 623 3,157 
Special mention3 100 — — — 7 — 110 
Substandard— 48 — — — — — 48 
Doubtful— — 10 — 40 — — 50 
Total commercial and financial$9,810 $5,525 $811 $550 $1,486 $237 $25,800 $44,219 
Commercial real estate:
Risk Rating:
Investment grade$— $41 $166 $328 $318 $549 $— $1,402 
Sub-investment grade
— — 47 — 31 563 — 641 
Special mention66 — — 20 — 46 — 132 
Substandard— — — — — 165 — 165 
Doubtful— — — — — 131 — 131 
Total commercial real estate$66 $41 $213 $348 $349 $1,454 $— $2,471 
Total loans(2)
$9,876 $5,566 $1,024 $898 $1,835 $1,691 $25,800 $46,690 
(1) Any reserve associated with accrued interest is not material. As of December 31, 2025, accrued interest receivable of $338 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
(2) Total does not include $92 million of loans classified as held-for-sale as of December 31, 2025.
Schedule of Activity in the Allowance for Loan Losses
The following tables present the activity in the allowance for credit losses by portfolio and class for the periods indicated:
Three Months Ended June 30, 2026
Commercial and Financial
(In millions)Commercial Loans
Other Loans(1)
Commercial Real EstateOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$39 $11 $118 $9 $2 $179 
Provision(16)(1)14 3 — — 
Charge-offs(2)
(4)— — — — (4)
Ending balance$19 $10 $132 $12 $2 $175 
(1) Includes $4 million allowance for credit losses for fund finance and $3 million each for CLO loans and subscription finance loans.
(2) Related to the sale of certain commercial loans in the three months ended June 30, 2026.
Six Months Ended June 30, 2026
Commercial and Financial
(In millions)Commercial Loans
Other Loans(1)
Commercial Real EstateOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$69 $5 $119 $8 $2 $203 
Provision(6)5 13 4 — 16 
Charge-offs(2)
(44)— — — — (44)
Ending balance$19 $10 $132 $12 $2 $175 
(1) Includes $4 million allowance for credit losses for fund finance and $3 million each for CLO loans and subscription finance loans.
(2) Related to the sale of certain commercial loans in the six months ended June 30, 2026.
Three Months Ended June 30, 2025
Commercial and Financial
(In millions)Commercial Loans
Other Loans(1)
Commercial Real EstateOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$65 $6 $105 $10 $— $186 
Provision7 1 19 2 1 30 
Charge-offs(2)
(1)— (23)— — (24)
Ending balance$71 $7 $101 $12 $1 $192 
(1) Includes $3 million allowance for credit losses on both subscription finance and fund finance loans and $1 million on CLO loans.
(2) Related to the sale of certain commercial loans in the three months ended June 30, 2025.
Six Months Ended June 30, 2025
Commercial and Financial
(In millions)Commercial Loans
Other Loans(1)
Commercial Real EstateOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$68 $4 $102 $9 $— $183 
Provision13 3 22 3 1 42 
Charge-offs(2)
(10)— (23)— — (33)
Ending balance$71 $7 $101 $12 $1 $192 
(1) Includes $3 million allowance for credit losses on both subscription finance and fund finance loans and $1 million on CLO loans.
(2) Related to the sale of certain commercial loans in the six months ended June 30, 2025.