v3.26.1
Derivative Instruments (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Asset and Liability Management Derivative Positions
The following table summarizes the asset and liability management derivative positions of the Company:
June 30, 2026December 31, 2025
Notional ValueFair ValueNotional ValueFair Value
(Dollars in Millions)AssetsLiabilitiesAssetsLiabilities
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps$13,025 $— $— $7,950 $— $— 
Pay fixed/receive floating swaps23,270 — — 25,154 — — 
Cash flow hedges
Interest rate contracts
Receive fixed/pay floating swaps29,580 2 3 25,350 — — 
Pay fixed/receive floating swaps— — — 1,000 — — 
Net investment hedges
Foreign exchange forward contracts885 11 — 759 — 2 
Other economic hedges
Interest rate contracts
Futures and forwards
Buy4,833 10 5 3,235 10 1 
Sell4,403 6 12 3,583 1 10 
Options
Purchased8,955 127 — 8,930 131 — 
Written2,922 16 49 2,553 13 58 
Receive fixed/pay floating swaps5,354 — 76 5,318 14 30 
Pay fixed/receive floating swaps2,662 — — 2,479 — — 
Foreign exchange forward contracts891 5 4 940 3 3 
Equity contracts366 5 3 334 2 1 
Credit contracts2,509 — 10 2,265 — 18 
Other(a)
1,539 5 76 1,085 6 99 
Total$101,194 $187 $238 $90,935 $180 $222 
(a)Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common and preferred shares of Visa Inc. The Visa swap agreements had a total notional value and fair value of $690 million and $74 million at June 30, 2026, respectively, compared to $995 million and $99 million at December 31, 2025, respectively. In addition, includes short-term underwriting purchase and sale commitments with total notional values of $756 million at June 30, 2026.
Summary of Customer-Related Derivative Positions
The following table summarizes the customer-related derivative positions of the Company:
June 30, 2026December 31, 2025
Notional
Value		Fair ValueNotional
Value		Fair Value
(Dollars in Millions)AssetsLiabilitiesAssetsLiabilities
Interest rate contracts
Receive fixed/pay floating swaps$516,942 $576 $2,778 $459,357 $1,326 $2,134 
Pay fixed/receive floating swaps430,898 1,668 211 386,099 1,142 449 
Other(a)
63,026 17 42 66,014 19 33 
Options
Purchased182,448 258 1 148,778 222 8 
Written120,918 11 404 106,749 24 291 
Futures
Buy17,207 — 10 3,974 — — 
Sell14 — — 527 — — 
Foreign exchange rate contracts
Forwards, spots and swaps137,299 2,473 2,367 137,555 2,688 2,575 
Options
Purchased1,493 18 — 1,101 20 2 
Written1,493 — 18 1,101 4 19 
Commodity contracts
Swaps28,995 1,263 1,128 18,068 810 705 
Options
Purchased4,959 316 5 4,545 278 2 
Written4,949 11 313 4,539 1 278 
Futures
Buy2 — — — — — 
Sell1,139 302 105 631 138 71 
Credit contracts16,577 — 14 14,683 — 3 
Total$1,528,359 $6,913 $7,396 $1,353,721 $6,672 $6,570 
(a)Primarily represents floating rate interest rate swaps that pay based on differentials between specified interest rate indexes.
Summary of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax):
Three Months Ended June 30Six Months Ended June 30
Gains (Losses) Recognized in Other Comprehensive Income (Loss)Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings Gains (Losses) Recognized in Other Comprehensive Income (Loss)Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
(Dollars in Millions)20262025202620252026202520262025
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts$(169)$116 $(31)$(49)$(291)$327 $(62)$(94)
Net investment hedges
Foreign exchange forward contracts16 (38)— — 34 (42)— — 
Non-derivative debt instruments11 (130)— — 49 (191)— — 
Note: The Company does not exclude components from effectiveness testing for cash flow and net investment hedges.
Summary of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss)
The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax):
Three Months Ended June 30Six Months Ended June 30
Gains (Losses) Recognized in Other Comprehensive Income (Loss)Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings Gains (Losses) Recognized in Other Comprehensive Income (Loss)Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
(Dollars in Millions)20262025202620252026202520262025
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts$(169)$116 $(31)$(49)$(291)$327 $(62)$(94)
Net investment hedges
Foreign exchange forward contracts16 (38)— — 34 (42)— — 
Non-derivative debt instruments11 (130)— — 49 (191)— — 
Note: The Company does not exclude components from effectiveness testing for cash flow and net investment hedges.
Summary of Effect of Fair Value and Cash Flow Hedge Accounting on Consolidated Statement of Income
The table below shows the effect of fair value and cash flow hedge accounting on the Consolidated Statement of Income:
Three Months Ended June 30Six Months Ended June 30
Interest Income Interest Expense Interest Income Interest Expense
(Dollars in Millions)20262025202620252026202520262025
Total amount of income and expense line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded$7,598 $7,604 $3,237 $3,553 $15,005 $15,120 $6,381 $6,977 
Asset and Liability Management Positions
Fair value hedges
Interest rate contract derivatives253 (285)(93)(78)453 (733)(143)(184)
Hedged items(249)286 94 76 (460)733 145 188 
Cash flow hedges
Interest rate contract derivatives(41)(59)— 7 (82)(112)1 14 
Note: The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company reclassified losses of $1 million into earnings during the six months ended June 30, 2026, as a result of realized cash flows on discontinued cash flow hedges, compared with $7 million and $14 million into earnings during the three and six months ended June 30, 2025, respectively. No amounts were reclassified into earnings on discontinued cash flow hedges because it is probable the original hedged forecasted cash flows will not occur.
Summary of Cumulative Hedging Adjustments and the Carrying Amount of Assets and Liabilities Designated in Fair Value Hedges
The table below shows cumulative hedging adjustments and the carrying amount of assets and liabilities currently designated in fair value hedges:
Carrying Amount of the Hedged Assets
and Liabilities		Cumulative Hedging Adjustment
(Dollars in Millions)June 30, 2026December 31, 2025June 30, 2026December 31, 2025
Line Item in the Consolidated Balance Sheet
Available-for-sale investment securities(a)
$22,882 $25,062 $(257)$75 
Long-term debt13,023 8,091 22 153 
Note: The table above excludes the cumulative hedging adjustment related to discontinued hedging relationships on available-for-sale investment securities and long-term debt of $(18) million and $(32) million, respectively, at June 30, 2026, compared with $57 million and $(33) million at December 31, 2025, respectively. The carrying amount of available-for-sale investment securities and long-term debt related to discontinued hedging relationships was $13.9 billion and $14.6 billion, respectively, at June 30, 2026, compared with $11.8 billion and $16.6 billion at December 31, 2025, respectively.
(a)Includes amounts related to available-for-sale investment securities currently designated as the hedged item in a fair value hedge using the portfolio layer method. At June 30, 2026, the amortized cost of the closed portfolios used in these hedging relationships was $20.3 billion, of which $7.3 billion was designated as hedged. At June 30, 2026, the cumulative amount of basis adjustments associated with these hedging relationships was $6 million. At December 31, 2025, the amortized cost of the closed portfolios used in these hedging relationships was $20.7 billion, of which $9.2 billion was designated as hedged. At December 31, 2025, the cumulative amount of basis adjustments associated with these hedging relationships was $175 million.
Summary of Gains (Losses) Recognized in Earnings for Other Economic Hedges and Customer-Related Positions
The table below shows the gains (losses) recognized in earnings for other economic hedges and the customer-related positions:
Three Months Ended
June 30		Six Months Ended
June 30
(Dollars in Millions)Location of Gains (Losses)
Recognized in Earnings		2026202520262025
Asset and Liability Management Positions
Other economic hedges
Interest rate contracts
Futures and forwardsMortgage banking revenue$14 $1 $11 $25 
Purchased and written optionsMortgage banking revenue41 38 98 68 
SwapsMortgage banking revenue/Interest expense(9)13 (2)69 
Foreign exchange forward contractsOther noninterest income11 (19)17 (17)
Equity contractsCompensation expense46 27 35 8 
Credit contractsOther noninterest income(13)(12)5 5 
OtherOther noninterest income(12)(82)(31)(82)
Customer-Related Positions
Interest rate contracts
SwapsCapital markets revenue167 47 269 82 
Purchased and written optionsCapital markets revenue(44)2 (97)14 
FuturesCapital markets revenue(7)1 (10)2 
Foreign exchange rate contracts
Forwards, spots and swapsCapital markets revenue50 66 94 114 
Purchased and written optionsCapital markets revenue— — — 1 
Commodity contracts
SwapsCapital markets revenue(160)(43)(202)4 
Purchased and written optionsCapital markets revenue1 15 2 14 
Futures and forwardsCapital markets revenue160 45 255 4 
Credit contractsCapital markets revenue(4)(8)6 (6)