v3.26.1
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2026
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)June 30, 2026December 31, 2025
Derivatives not designated as hedging instruments:
Interest rate contracts:
Futures$40,050 $97,035 
Foreign exchange contracts:
Forward, swap and spot3,369,461 2,768,458 
Options purchased2,321 436 
Options written1,675 110 
Futures165 472 
Other:
Futures226 159 
Stable value contracts(1)
10,366 12,271 
Deferred value awards(2)
169 222 
Derivatives designated as hedging instruments:
Interest rate contracts:
Swap agreements43,136 42,708 
Foreign exchange contracts:
Forward and swap13,852 12,350 
(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 Note 10 of the notes to consolidated financial statements in our 2025 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)June 30, 2026December 31, 2025June 30, 2026December 31, 2025
Derivatives not designated as hedging instruments:
Foreign exchange contracts$23,832 $14,200 $24,206 $13,993 
Other derivative contracts— 1 118 159 
Total$23,832 $14,201 $24,324 $14,152 
Derivatives designated as hedging instruments:
Foreign exchange contracts$272 $24 $22 $104 
Interest rate contracts11 34 16 5 
Total$283 $58 $38 $109 
(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)June 30, 2026December 31, 2025June 30, 2026December 31, 2025
Derivatives not designated as hedging instruments:
Foreign exchange contracts$23,832 $14,200 $24,206 $13,993 
Other derivative contracts— 1 118 159 
Total$23,832 $14,201 $24,324 $14,152 
Derivatives designated as hedging instruments:
Foreign exchange contracts$272 $24 $22 $104 
Interest rate contracts11 34 16 5 
Total$283 $58 $38 $109 
(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 June 30,Six Months Ended June 30,
2026202520262025
(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$376 $279 $699 $512 
Foreign exchange contractsInterest expense4 42 33 125 
Interest rate contractsForeign exchange trading services revenue4 6 5 12 
Other derivative contractsOther fee revenue(24)(10)(16)(4)
Other derivative contractsCompensation and employee benefits(12)(16)(26)(51)
Total$348 $301 $695 $594 
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 June 30,Three Months Ended June 30,
2026202520262025
(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$153 $(154)
Available-for-sale securities(1)
Net interest income
$(153)$154 
Interest rate contractsNet interest income(105)95 Long-term debtNet interest income105 (95)
Foreign exchange contractsOther fee revenue(2)(4)Available-for-sale securitiesOther fee revenue2 4 
Total$46 $(63)(46)63 
Six Months Ended June 30,Six Months Ended June 30,
2026202520262025
(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$279 $(388)
Available-for-sale securities(2)
Net interest income$(279)$388 
Interest rate contractsNet interest income(168)245 Long-term debtNet interest income168 (245)
Foreign exchange contractsOther fee revenue(25)(1)Available-for-sale securitiesOther fee revenue25 1 
Total$86 $(144)$(86)$144 
(1) In the three months ended June 30, 2026, approximately $114 million of net unrealized gains on AFS investment securities designated in fair value hedges were recognized in OCI, compared to $110 million of net unrealized losses in the same period of 2025.
(2) In the six months ended June 30, 2026, approximately $219 million of net unrealized gains on AFS investment securities designated in fair value hedges were recognized in OCI, compared to $320 million of net unrealized losses in the same period of 2025.
Three Months Ended June 30,Three Months Ended June 30,
20262025Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income20262025
(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)
$15 $10 Net interest income$(11)$(36)
Total derivatives designated as cash flow hedges$15 $10 $(11)$(36)
Derivatives designated as net investment hedges:
Foreign exchange contracts$89 $(622)$— $— 
Total derivatives designated as net investment hedges89 (622)— — 
Total$104 $(612)$(11)$(36)
Six Months Ended June 30,Six Months Ended June 30,
2026202520262025
(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)
$(22)$12 Net interest income$(37)$(73)
Total derivatives designated as cash flow hedges$(22)$12 $(37)$(73)
Derivatives designated as net investment hedges:
Foreign exchange contracts$219 $(907)$— $— 
Total derivatives designated as net investment hedges219 (907)— — 
Total$197 $(895)$(37)$(73)
(1) As of June 30, 2026, 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:
June 30, 2026
Cumulative Fair Value Hedging Adjustment Increasing (Decreasing) the Carrying Amount
(In millions)Carrying Amount of Hedged Assets/LiabilitiesActive
De-designated(1)
Long-term debt$16,302 $(244)$64 
Available-for-sale securities(2)(3)
23,512 (188)— 
December 31, 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$15,553 $(76)$72 
Available-for-sale securities(2)(3)
22,804 99 — 
(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 June 30, 2026 and December 31, 2025, the amortized cost of the closed portfolios used in these hedging relationships was $2.69 billion and $3.30 billion, respectively, of which $1.43 billion and $1.73 billion, respectively, was designated under the portfolio layer hedging relationship for both periods. At June 30, 2026 and December 31, 2025, the cumulative adjustment associated with these hedging relationships was $6 million and $21 million, respectively.
(3) Carrying amount represents amortized cost.