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Contract revenue
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Contract revenue Contract revenue
Fee and other revenue in the Securities Services, Market and Wealth Services and Investment and Wealth Management business segments is primarily variable, based on levels of assets under custody and/or administration, assets under management and the level of client-driven transactions, as specified in the fee schedules. See Note 9 of the Notes to Consolidated Financial Statements in our 2025 Annual Report for information on the nature of our services and revenue recognition. See Note 23 of the Notes to Consolidated Financial Statements in our 2025 Annual Report for additional information on our principal business segments — Securities Services,
Market and Wealth Services and Investment and Wealth Management — and the primary services provided.

Disaggregation of contract revenue

Contract revenue is included in fee and other revenue on the consolidated income statement. The following table presents fee and other revenue related to contracts with customers, disaggregated by type of fee revenue, for each business segment. Business segment data has been determined on an internal management basis of accounting, rather than GAAP, which is used for consolidated financial reporting.
Disaggregation of contract revenue by business segment
Quarter ended
June 30, 2026
June 30, 2025 (a)
(in millions)Securities ServicesMarket and Wealth ServicesInvestment and Wealth ManagementOtherTotalSecurities ServicesMarket and Wealth ServicesInvestment and Wealth ManagementOtherTotal
Fee and other revenue – contract revenue:
Investment services fees$1,648 $1,207 $27 $(18)$2,864 $1,435 $1,113 $26 $(18)$2,556 
Investment management and performance fees— 3 796 (3)796 — 3 754 (3)754 
Financing-related fees19 8 — — 27 11 3 1 — 15 
Distribution and servicing fees— (34)72 — 38 1 (34)69 1 37 
Investment and other revenue75 73 (116)(2)30 72 69 (106)(3)32 
Total fee and other revenue – contract revenue1,742 1,257 779 (23)3,755 1,519 1,154 744 (23)3,394 
Fee and other revenue – not in scope of Accounting Standards Codification (“ASC”) 606 (b)(c)
304 102 30 30 466 268 94 16 41 419 
Total fee and other revenue$2,046 $1,359 $809 $7 $4,221 $1,787 $1,248 $760 $18 $3,813 
(a)    Results for the quarter ended June 30, 2025 were revised to reflect the realignment of clients in Managed Accounts Solutions from the Securities Services business segment to the Market and Wealth Services business segment in the first quarter of 2026. See Note 16 for additional information.
(b)    Primarily includes investment services fees, foreign exchange revenue, financing-related fees and investment and other revenue, all of which are accounted for using other accounting guidance.
(c)    The Investment and Wealth Management business segment is net of income (loss) attributable to noncontrolling interests related to consolidated investment management funds of $31 million in the second quarter of 2026 and $12 million in the second quarter of 2025.


Disaggregation of contract revenue by business segment
Year-to-date
June 30, 2026
June 30, 2025 (a)
(in millions)Securities ServicesMarket and Wealth ServicesInvestment and Wealth ManagementOtherTotalSecurities ServicesMarket and Wealth ServicesInvestment and Wealth ManagementOtherTotal
Fee and other revenue – contract revenue:
Investment services fees$3,069 $2,384 $53 $(34)$5,472 $2,732 $2,192 $51 $(36)$4,939 
Investment management and performance fees— 6 1,577 (7)1,576 — 6 1,502 (6)1,502 
Financing-related fees38 18 — — 56 26 11 1 — 38 
Distribution and servicing fees1 (68)142 — 75 2 (67)137 1 73 
Investment and other revenue149 145 (229)(4)61 139 136 (209)(1)65 
Total fee and other revenue – contract revenue3,257 2,485 1,543 (45)7,240 2,899 2,278 1,482 (42)6,617 
Fee and other revenue – not in scope of ASC 606 (b)(c)
710 195 38 79 1,022 546 171 16 94 827 
Total fee and other revenue$3,967 $2,680 $1,581 $34 $8,262 $3,445 $2,449 $1,498 $52 $7,444 
(a)    Results for the six months ended June 30, 2025 were revised to reflect the realignment of clients in Managed Accounts Solutions from the Securities Services business segment to the Market and Wealth Services business segment in the first quarter of 2026. See Note 16 for additional information.
(b)    Primarily includes investment services fees, foreign exchange revenue, financing-related fees and investment and other revenue, all of which are accounted for using other accounting guidance.
(c)    The Investment and Wealth Management business segment is net of income (loss) attributable to noncontrolling interests related to consolidated investment management funds of $29 million in the first six months of 2026 and $14 million in the first six months of 2025.
Contract balances

Our clients are billed based on fee schedules that are agreed upon in each customer contract. Receivables from customers were $3.1 billion at June 30, 2026 and $2.9 billion at Dec. 31, 2025.

Contract assets represent accrued revenues that have not yet been billed to customers due to certain contractual terms other than the passage of time and
were $66 million at June 30, 2026 and $37 million at Dec. 31, 2025. Accrued revenues recorded as contract assets are usually billed on an annual basis.

Both receivables from customers and contract assets are included in other assets on the consolidated balance sheet.

Contract liabilities represent payments received in advance of providing services under certain contracts
and were $226 million at June 30, 2026 and $180 million at Dec. 31, 2025. Contract liabilities are included in other liabilities on the consolidated balance sheet. Revenue recognized in the first six months of 2026 relating to contract liabilities as of Dec. 31, 2025 was $78 million. Revenue recognized in the second quarter of 2026 relating to contract liabilities as of March 31, 2026 was $68 million.

Changes in contract assets and liabilities primarily relate to either party’s performance under the contracts.

Contract costs

Incremental costs for obtaining contracts that are deemed recoverable are capitalized as contract costs. Such costs result from the payment of sales incentives, primarily in the Wealth Management line of business, and totaled $50 million at June 30, 2026 and $47 million at Dec. 31, 2025. Capitalized sales incentives are amortized based on the transfer of goods or services to which the assets relate. The amortization of capitalized sales incentives, which is included in staff expense on the consolidated income statement, totaled $2 million in the second quarter of 2026, $4 million in the second quarter of 2025, $5
million in the first six months of 2026 and $7 million in the first six months of 2025.

Costs to fulfill a contract are capitalized when they relate directly to an existing contract or a specific anticipated contract, generate or enhance resources that will be used to fulfill performance obligations, and are recoverable. Such costs generally represent set-up costs, which include any direct cost incurred at the inception of a contract which enables the fulfillment of the performance obligation, and totaled $140 million at June 30, 2026 and $128 million at Dec. 31, 2025. These capitalized costs are amortized on a straight-line basis over the expected contract period.

Unsatisfied performance obligations

We do not have any unsatisfied performance obligations other than those that are subject to a practical expedient election under ASC 606, Revenue From Contracts With Customers. The practical expedient election applies to (i) contracts with an original expected length of one year or less, and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.