Fair Value Option (Tables)

6 Months Ended

Jun. 30, 2026

Changes in fair value under the fair value option election

The following table presents the changes in fair value included in the Consolidated statements of income for the three and six months ended June 30, 2026 and 2025, for items for which the fair value option was elected. The profit and loss information presented below only includes the financial instruments that were elected to be measured at fair value; related risk management instruments, which are required to be measured at fair value, are not included in the table.


	Three months ended June 30,
	2026							2025
(in millions)	Principal transactions		All other income			Total changes in fair value recorded (e)		Principal transactions		All other income			Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreements	$	(67)	$	—		$	(67)	$	47	$	—		$	47
Securities borrowed	9		—			9		(4)		—			(4)
Trading assets:
Debt and equity instruments, excluding loans	1,192		—			1,192		1,247		—			1,247
Loans reported as trading assets:
Changes in instrument-specific credit risk	143		—			143		(1)		—			(1)
Other changes in fair value	—		6		(c)	6		14		5		(c)	19
Loans:
Changes in instrument-specific credit risk	132		(2)		(c)	130		148		—			148
Other changes in fair value	14		95		(c)	109		87		146		(c)	233
Other assets	8		—			8		3		—			3
Deposits(a)	(228)		—			(228)		(531)		—			(531)
Federal funds purchased and securities loaned or sold under repurchase agreements	27		—			27		(5)		—			(5)
Short-term borrowings(a)	(797)		—			(797)		(392)		—			(392)
Trading liabilities	94		—			94		2		—			2
Beneficial interests issued by consolidated VIEs	—		—			—		—		—			—
Other liabilities	(2)		—			(2)		(7)		—			(7)
Long-term debt(a)(b)	(5,983)		1		(c)(d)	(5,982)		(3,172)		2		(c)(d)	(3,170)


	Six months ended June 30,
	2026							2025
(in millions)	Principal transactions		All other income			Total changes in fair value recorded (e)		Principal transactions		All other income			Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreements	$	(67)	$	—		$	(67)	$	73	$	—		$	73
Securities borrowed	(2)		—			(2)		(4)		—			(4)
Trading assets:
Debt and equity instruments, excluding loans	775		—			775		1,048		—			1,048
Loans reported as trading assets:
Changes in instrument-specific credit risk	279		—			279		23		—			23
Other changes in fair value	7		8		(c)	15		17		8		(c)	25
Loans:
Changes in instrument-specific credit risk	296		1		(c)	297		417		—			417
Other changes in fair value	(42)		164		(c)	122		257		327		(c)	584
Other assets	25		(2)		(d)	23		31		—			31
Deposits(a)	(245)		—			(245)		(992)		—			(992)
Federal funds purchased and securities loaned or sold under repurchase agreements	36		—			36		(12)		—			(12)
Short-term borrowings(a)	(682)		—			(682)		(539)		—			(539)
Trading liabilities	37		—			37		20		—			20
Beneficial interests issued by consolidated VIEs	—		—			—		—		—			—
Other liabilities	(2)		—			(2)		(5)		—			(5)
Long-term debt(a)(b)	(4,318)		(4)		(c)(d)	(4,322)		(3,357)		(4)		(c)(d)	(3,361)

(a)Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected are recorded in OCI, while realized gains/(losses) are recorded in principal transactions revenue. Realized gains/(losses) due to instrument-specific credit risk recorded in principal transactions revenue were not material for the three and six months ended June 30, 2026 and 2025.

(b)Long-term debt measured at fair value predominantly relates to structured notes. Although the risk associated with the structured notes is actively managed, the gains/(losses) reported in this table do not include the income statement impact of the risk management instruments used to manage such risk.

(c)Reported in mortgage fees and related income.

(d)Reported in other income.

(e)Changes in fair value exclude contractual interest, which is included in interest income and interest expense for all instruments other than certain hybrid financial instruments in CIB. Refer to Note 6 for further information regarding interest income and interest expense.

Difference between aggregate fair value and aggregate remaining contractual principal balance outstanding

The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of June 30, 2026 and December 31, 2025, for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected.


	June 30, 2026							December 31, 2025
(in millions)	Contractual principal outstanding			Fair value		Fair value over/(under) contractual principal outstanding		Contractual principal outstanding			Fair value		Fair value over/(under) contractual principal outstanding
Loans
Nonaccrual loans
Loans reported as trading assets	$	3,761		$	756	$	(3,005)	$	3,443		$	545	$	(2,898)
Loans	1,672			1,234		(438)		1,994			1,518		(476)
Subtotal	5,433			1,990		(3,443)		5,437			2,063		(3,374)
90 or more days past due and government guaranteed
Loans(a)	205			196		(9)		152			144		(8)
All other performing loans(b)
Loans reported as trading assets	15,258			13,481		(1,777)		14,852			12,380		(2,472)
Loans(c)	62,132			61,459		(673)		68,802			69,022		220
Subtotal	77,390			74,940		(2,450)		83,654			81,402		(2,252)
Total loans	$	83,028		$	77,126	$	(5,902)	$	89,243		$	83,609	$	(5,634)
Long-term debt
Principal-protected debt	$	91,759	(e)	$	79,494	$	(12,265)	$	73,984	(e)	$	63,770	$	(10,214)
Nonprincipal-protected debt(d)	NA			76,562		NA		NA			70,789		NA
Total long-term debt	NA			$	156,056	NA		NA			$	134,559	NA
Long-term beneficial interests
Nonprincipal-protected debt(d)	NA			$	5	NA		NA			$	5	NA
Total long-term beneficial interests	NA			$	5	NA		NA			$	5	NA

(a)These balances are excluded from nonaccrual loans as the loans are insured and/or guaranteed by U.S. government agencies.

(b)There were no performing loans that were ninety days or more past due as of June 30, 2026 and December 31, 2025.

(c)Includes loans insured and/or guaranteed by U.S. government agencies less than 90 days past due.

(d)Remaining contractual principal is not applicable to nonprincipal-protected structured notes and long-term beneficial interests. Unlike principal-protected structured notes and long-term beneficial interests, for which the Firm is obligated to return a stated amount of principal at maturity, nonprincipal-protected structured notes and long-term beneficial interests do not obligate the Firm to return a stated amount of principal at maturity, but for structured notes to return an amount based on the performance of an underlying variable or derivative feature embedded in the note. However, investors are exposed to the credit risk of the Firm as issuer for both nonprincipal-protected and principal-protected notes.

(e)Where the Firm issues principal-protected zero-coupon or discount notes, the balance reflects the contractual principal payment at maturity or, if applicable, the contractual principal payment at the Firm’s next call date.

Fair value option, structured notes by balance sheet classification and primary embedded derivative risk

The following table presents the fair value of structured notes, by balance sheet classification and the primary risk type.


	June 30, 2026									December 31, 2025
(in millions)	Long-term debt		Short-term borrowings		Deposits			Total		Long-term debt		Short-term borrowings		Deposits			Total
Risk exposure
Interest rate	$	74,343	$	2,158	$	22,251		$	98,752	$	61,398	$	3,273	$	17,184		$	81,855
Credit	10,079		976		—			11,055		8,677		817		—			9,494
Foreign exchange	2,929		1,498		319			4,746		2,617		606		448			3,671
Equity	62,771		11,043		3,394			77,208		55,890		9,978		3,095			68,963
Commodity	933		383		—		(a)	1,316		828		154		—		(a)	982
Total structured notes	$	151,055	$	16,058	$	25,964		$	193,077	$	129,410	$	14,828	$	20,727		$	164,965

(a)Excludes deposits linked to precious metals for which the fair value option has not been elected of $3.0 billion and $2.8 billion for the periods ended June 30, 2026 and December 31, 2025, respectively.