Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivatives on a Gross Basis

The tables below present the gross fair value and the notional amounts of derivative contracts by major product type, the amounts of counterparty and cash collateral netting in the consolidated balance sheets, as well as cash and securities collateral posted and received under enforceable credit support agreements that do not meet the criteria for netting under U.S. GAAP.


	Fair Value as of
	June				December
	2026				2025
$ in millions	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Not accounted for as hedges
Exchange-traded	$	2,251	$	512	$	2,976	$	1,217
OTC-cleared	9,288		9,739		4,961		4,854
Bilateral OTC	147,931		110,952		153,595		116,061
Total interest rates	159,470		121,203		161,532		122,132
OTC-cleared	4,168		4,579		2,684		2,973
Bilateral OTC	11,608		10,788		11,091		11,162
Total credit	15,776		15,367		13,775		14,135
Exchange-traded	125		16		126		14
OTC-cleared	1,726		1,800		1,210		1,064
Bilateral OTC	96,504		94,638		78,403		82,468
Total currencies	98,355		96,454		79,739		83,546
Exchange-traded	6,452		6,752		8,597		8,788
OTC-cleared	435		374		640		804
Bilateral OTC	11,990		10,832		7,863		9,924
Total commodities	18,877		17,958		17,100		19,516
Exchange-traded	80,513		119,835		53,564		91,084
OTC-cleared	23		12		33		55
Bilateral OTC	69,799		127,279		34,101		60,422
Total equities	150,335		247,126		87,698		151,561
Subtotal	442,813		498,108		359,844		390,890
Accounted for as hedges
OTC-cleared	53		128		17		49
Bilateral OTC	143		10		164		7
Total interest rates	196		138		181		56
OTC-cleared	55		14		30		5
Bilateral OTC	235		8		25		263
Total currencies	290		22		55		268
Subtotal	486		160		236		324
Total gross fair value	$	443,299	$	498,268	$	360,080	$	391,214

Offset in the consolidated balance sheets
Exchange-traded	$	(81,881)	$	(81,881)	$	(58,701)	$	(58,701)
OTC-cleared	(14,999)		(14,999)		(8,925)		(8,925)
Bilateral OTC	(230,698)		(230,698)		(193,549)		(193,549)
Counterparty netting	(327,578)		(327,578)		(261,175)		(261,175)
OTC-cleared	(52)		(1,378)		(109)		(424)
Bilateral OTC	(50,497)		(69,339)		(45,843)		(45,210)
Cash collateral netting	(50,549)		(70,717)		(45,952)		(45,634)
Total amounts offset	$	(378,127)	$	(398,295)	$	(307,127)	$	(306,809)

Included in the consolidated balance sheets
Exchange-traded	$	7,460	$	45,234	$	6,562	$	42,402
OTC-cleared	697		269		541		455
Bilateral OTC	57,015		54,470		45,850		41,548
Total	$	65,172	$	99,973	$	52,953	$	84,405

Not offset in the consolidated balance sheets
Cash collateral	$	(942)	$	(2,177)	$	(442)	$	(1,951)
Securities collateral	(24,472)		(12,477)		(20,965)		(8,910)
Total	$	39,758	$	85,319	$	31,546	$	73,544


	Notional Amounts as of
	June		December
$ in millions	2026		2025
Not accounted for as hedges
Exchange-traded	$	1,885,830	$	1,983,652
OTC-cleared	22,794,489		16,533,168
Bilateral OTC	11,010,102		10,705,896
Total interest rates	35,690,421		29,222,716
Exchange-traded	151		332
OTC-cleared	1,224,233		986,680
Bilateral OTC	951,076		758,385
Total credit	2,175,460		1,745,397
Exchange-traded	8,613		9,555
OTC-cleared	835,030		523,741
Bilateral OTC	8,302,944		7,192,306
Total currencies	9,146,587		7,725,602
Exchange-traded	403,614		366,003
OTC-cleared	2,254		2,710
Bilateral OTC	229,373		186,420
Total commodities	635,241		555,133
Exchange-traded	2,659,426		2,327,060
OTC-cleared	670		1,062
Bilateral OTC	2,099,595		1,634,183
Total equities	4,759,691		3,962,305
Subtotal	52,407,400		43,211,153
Accounted for as hedges
OTC-cleared	400,479		294,278
Bilateral OTC	1,030		1,157
Total interest rates	401,509		295,435
OTC-cleared	6,191		6,105
Bilateral OTC	16,807		18,188
Total currencies	22,998		24,293


Subtotal	424,507		319,728
Total notional amounts	$	52,831,907	$	43,530,881

In the tables above:

•Gross fair values exclude the effects of both counterparty netting and collateral, and therefore are not representative of the firm’s exposure.

•Amounts presented for collateral not offset in the consolidated balance sheets consists of collateral received or posted in connection with OTC-cleared and bilateral OTC derivatives under enforceable credit support agreements that do not meet the criteria for netting under U.S. GAAP. In addition to collateral presented in the table above, the firm also posts or receives collateral in connection with its transactions with certain exchanges in accordance with the exchanges’ margin requirements. Such collateral may be calculated based on the firm’s total exposure to the respective exchange across all product types, including both derivative and non-derivative instruments. See Note 11 for further information.

•Substantially all of the gross fair value of derivatives relates to derivative contracts which are subject to enforceable netting agreements.

•Notional amounts, which represent the sum of gross long and short derivative contracts, provide an indication of the volume of the firm’s derivative activity and do not represent anticipated losses.

Credit Derivatives

The table below presents information about credit derivatives.


	Credit Rating of Underlier
$ in millions	Investment-Grade		Non-Investment- Grade/Unrated		Total
As of June 2026
Maximum Payout/Notional Amount of Written Credit Derivatives
By Product
Credit default swaps	$	671,070	$	151,169	$	822,239
Other credit derivatives	192,760		49,262		242,022
Total by product	$	863,830	$	200,431	$	1,064,261

By Maturity
Less than 1 year	$	260,246	$	60,043	$	320,289
1 - 5 years	556,168		131,634		687,802
Greater than 5 years	47,416		8,754		56,170
Total by maturity	$	863,830	$	200,431	$	1,064,261

Maximum Payout/Notional Amount of Purchased Credit Derivatives
Offsetting	$	716,384	$	151,146	$	867,530
Other	184,422		59,247		243,669
Total	$	900,806	$	210,393	$	1,111,199



Fair Value of Written Credit Derivatives
Asset	$	7,047	$	4,623	$	11,670
Liability	1,048		2,177		3,225
Net asset/(liability)	$	5,999	$	2,446	$	8,445
As of December 2025
Maximum Payout/Notional Amount of Written Credit Derivatives
By Product
Credit default swaps	$	536,846	$	124,330	$	661,176
Other credit derivatives	135,770		33,097		168,867
Total by product	$	672,616	$	157,427	$	830,043

By Maturity
Less than 1 year	$	184,830	$	37,484	$	222,314
1 - 5 years	447,318		109,387		556,705
Greater than 5 years	40,468		10,556		51,024
Total by maturity	$	672,616	$	157,427	$	830,043

Maximum Payout/Notional Amount of Purchased Credit Derivatives
Offsetting	$	549,513	$	127,807	$	677,320
Other	188,117		49,917		238,034
Total	$	737,630	$	177,724	$	915,354



Fair Value of Written Credit Derivatives
Asset	$	6,169	$	4,040	$	10,209
Liability	1,345		2,153		3,498
Net asset/(liability)	$	4,824	$	1,887	$	6,711

In the table above:

•Tenor is based on the remaining contractual maturity.

•Credit ratings are based on external credit ratings issued by credit rating agencies or internally determined credit agency equivalents where external credit ratings are not available.

•The credit rating of the underlier, together with the tenor of the contract, are indicators of payment/performance risk. The occurrence of a credit event is less likely where the derivative contract is investment-grade and the tenor is shorter.

•Offsetting purchased credit derivatives represent the notional amount of purchased credit derivatives that economically hedge written credit derivatives with identical underliers.

•Other purchased credit derivatives represent the notional amount of all other purchased credit derivatives not included in offsetting.

•Fair values exclude the effects of both netting of receivable balances with payable balances under enforceable netting agreements, and netting of cash received or posted under enforceable credit support agreements, and therefore are not representative of the firm’s credit exposure.

Schedule of Derivative Instruments

The table below presents information about CVA and FVA.



	Three Months Ended June				Six Months Ended June
$ in millions	2026		2025		2026		2025
CVA, net of hedges	$	70	$	31	$	223	$	170
FVA, net of hedges	76		31		(14)		29
Total	$	146	$	62	$	209	$	199

The table below presents information about net derivative liabilities under bilateral agreements (excluding collateral posted), the fair value of collateral posted and additional collateral or termination payments that could have been called by counterparties in the event of a one- or two-notch downgrade in the firm’s credit ratings.


	As of
	June		December
$ in millions	2026		2025
Net derivative liabilities under bilateral agreements	$	61,805	$	33,473
Collateral posted	$	56,451	$	36,201
Additional collateral or termination payments:
One-notch downgrade	$	165	$	224
Two-notch downgrade	$	1,778	$	1,797

Summary of Derivatives Bifurcated from their Related Borrowings

The table below presents the fair value and the notional amount of derivatives that have been bifurcated from their related borrowings.


	As of
	June		December
$ in millions	2026		2025
Fair value of assets	$	408	$	428
Fair value of liabilities	(191)		(304)
Net asset/(liability)	$	217	$	124
Notional amount	$	9,893	$	8,691

Gain (Loss) from Interest Rate Hedges and Related Hedged Items

The table below presents the gains/(losses) from interest rate and foreign exchange derivatives accounted for as hedges and the related hedged items.



	Three Months Ended June				Six Months Ended June
$ in millions	2026		2025		2026		2025
Interest Rate Hedges - Investments
Interest rate swaps	$	898	$	(226)	$	1,222	$	(606)
Hedged investments	(905)		235		(1,239)		631
Gains/(losses)	$	(7)	$	9	$	(17)	$	25

Interest Rate Hedges - Borrowings and deposits
Interest rate swaps	$	(666)	$	1,189	$	(1,468)	$	3,098
Hedged borrowings and deposits	577		(1,281)		1,343		(3,245)
Gains/(losses)	$	(89)	$	(92)	$	(125)	$	(147)

Foreign Currency Hedges - Investments
Foreign currency forward contracts	$	(4)	$	(325)	$	187	$	(509)
Hedged investments	23		329		(162)		504
Gains/(losses)	$	19	$	4	$	25	$	(5)

Summary of Carrying Amount of Hedged Items and Gains/(Losses) from Net Investment Hedging

The table below presents the carrying value of investments, deposits and unsecured borrowings that are designated in an interest rate hedging relationship and the related cumulative hedging adjustment (increase/(decrease)) from current and prior hedging relationships included in such carrying values.


$ in millions	Carrying Value		Cumulative Hedging Adjustment
As of June 2026
Assets
Investments	$	99,993	$	(1,143)

Liabilities
Deposits	$	304	$	(5)
Unsecured short-term borrowings	$	9,226	$	(70)
Unsecured long-term borrowings	$	175,429	$	(8,525)

As of December 2025
Assets
Investments	$	42,449	$	244

Liabilities
Deposits	$	762	$	(17)
Unsecured short-term borrowings	$	4,694	$	(25)
Unsecured long-term borrowings	$	143,082	$	(7,340)

In the table above:

•Cumulative hedging adjustment included $(4.43) billion as of June 2026 and $(4.61) billion as of December 2025 of hedging adjustments from prior hedging relationships that were de-designated and substantially all were related to unsecured long-term borrowings.

•The amortized cost of investments was $100.31 billion as of June 2026 and $42.44 billion as of December 2025.

The table below presents the gains/(losses) from the hedges in a net investment hedging relationship.



	Three Months Ended June				Six Months Ended June
$ in millions	2026		2025		2026		2025
Foreign currency forward contracts	$	(15)	$	(792)	$	56	$	(1,202)
Foreign currency-denominated debt	$	348	$	(1,852)	$	711	$	(2,763)

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

+ References + Details