v3.26.1
Business segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Business segments Business segments
We have an internal information system that produces performance data along product and service lines for our three principal business segments and the Other segment. The primary products and services and types of revenue for our principal businesses and a description of the Other segment are presented in Note 23 of the Notes to Consolidated Financial Statements in our 2025 Annual Report.

Business accounting principles

Our business segment data has been determined on an internal management basis of accounting, rather than GAAP, which is used for consolidated financial reporting. These measurement principles are designed so that reported results of the businesses will track their economic performance.

Our business segments are consistent with the structure used by the Chief Executive Officer, our Chief Operating Decision Maker (“CODM”), to make key operating decisions and assess performance. Our CODM evaluates the business segments’ operating performance primarily based on fee and other revenue, total revenue, income before income taxes, and pre-tax operating margin. The significant expense information regularly provided to and reviewed by the CODM is total noninterest expense. The CODM considers this information when evaluating the performance of each business segment and in making decisions about allocating capital and other resources to each business segment.

Business segment results are subject to reclassification when organizational changes are made, or for refinements in revenue and expense
allocation methodologies. Refinements are typically reflected on a prospective basis. There were no reclassifications or organizational changes in the second quarter of 2026. In the first quarter of 2026, we realigned clients in Managed Accounts Solutions from the Asset Servicing line of business in the Securities Services business segment to the Wealth Solutions line of business in the Market and Wealth Services business segment. Business segment results for the three- and six-months ended June 30, 2025 have been revised to reflect this change.

The accounting policies of the businesses are the same as those described in Note 1 of the Notes to Consolidated Financial Statements in our 2025 Annual Report.

The results of our business segments are presented and analyzed on an internal management reporting basis.
•Revenue amounts reflect fee and other revenue generated by each business and include revenue for services provided between the segments that are also provided to third parties. Fee and other revenue transferred between businesses under revenue transfer agreements is included within other fees in each segment.
•Revenues and expenses associated with specific client bases are included in those businesses. For example, foreign exchange activity associated with clients using custody products is included in the Securities Services segment.
•Net interest income is allocated to businesses based on the yields on the assets and liabilities generated by each business. We employ a funds transfer pricing system that matches funds with the specific assets and liabilities of each business based on their interest sensitivity and maturity characteristics.
•The provision for credit losses associated with the respective credit portfolios is reflected in each segment.
•Incentives expense related to restricted stock and restricted stock units is allocated to the segments.
•Support and other indirect expenses, including services provided between segments that are not provided to third parties or not subject to a revenue transfer agreement, are allocated to the businesses based on internally developed methodologies and reflected in noninterest expense.
•Recurring FDIC expense is allocated to the businesses based on average deposits generated within each business.
•Severance expense is recorded in the segments based on the business or function the impacted employees reside.
•Litigation expense is generally recorded in the business in which the charge occurs.
•Management of the investment securities portfolio is a shared service contained in the Other segment. As a result, gains and losses associated with the valuation of the investment securities portfolio are generally included in the Other segment.
•Client deposits serve as the primary funding source for our investment securities portfolio. We typically allocate all interest income to the businesses generating the deposits.
•Balance sheet assets and liabilities and their related income or expense are specifically assigned to each business. Segments with a net liability position have been allocated assets.
•Goodwill and intangible assets are reflected within individual businesses.
The following consolidating schedules present the contribution of our segments to our overall profitability.

For the quarter ended June 30, 2026
Securities
Services		Market and Wealth ServicesInvestment
and Wealth Management		OtherConsolidated
(dollars in millions)
Total fee and other revenue$2,046 $1,359 $809 (a)$7 $4,221 (a)
Net interest income782 611 54 (1)1,446 
Total revenue2,828 1,970 863 (a)6 5,667 (a)
Provision for credit losses(5)(2)(5)4 (8)
Noninterest expense1,722 948 686 83 3,439 
Income (loss) before income taxes$1,111 $1,024 $182 (a)$(81)$2,236 (a)
Pre-tax operating margin (b)
39.3%52.0%21.1%N/M39.8%
Average assets$214,794 $148,791 $27,508 $73,677 $464,770 
(a)    Total fee and other revenue, total revenue and income before income taxes are net of income (loss) attributable to noncontrolling interests related to consolidated investment management funds of $31 million.
(b)    Income before income taxes divided by total revenue.
N/M – Not meaningful.


For the quarter ended June 30, 2025
Securities
Services		(a)Market and Wealth ServicesInvestment
and Wealth Management		OtherConsolidated
(dollars in millions)(a)
Total fee and other revenue$1,787 $1,248 $760 (b)$18 $3,813 (b)
Net interest income (expense)675 506 41 (19)1,203 
Total revenue2,462 1,754 801 (b)(1)5,016 (b)
Provision for credit losses(13)(6)— 2 (17)
Noninterest expense1,605 912 653 36 3,206 
Income (loss) before income taxes$870 $848 $148 (b)$(39)$1,827 (b)
Pre-tax operating margin (c)
35.3%48.4%18.5%N/M36.6%
Average assets$206,064 $135,607 $27,114 $69,823 $438,608 
(a)    In the first quarter of 2026, we realigned clients in Managed Accounts Solutions from the Securities Services business segment to the Market and Wealth Services business segment. Prior period amounts were revised for comparability.
(b)    Total fee and other revenue, total revenue and income before income taxes are net of income (loss) attributable to noncontrolling interests related to consolidated investment management funds of $12 million.
(c)    Income before income taxes divided by total revenue.
N/M – Not meaningful.


For the six months ended June 30, 2026
Securities
Services		Market and Wealth ServicesInvestment
and Wealth Management		OtherConsolidated
(dollars in millions)
Total fee and other revenue$3,967 $2,680 $1,581 (a)$34 $8,262 (a)
Net interest income (expense)1,539 1,182 107 (12)2,816 
Total revenue5,506 3,862 1,688 (a)22 11,078 (a)
Provision for credit losses(16)(8)4 5 (15)
Noninterest expense3,370 1,885 1,412 172 6,839 
Income (loss) before income taxes$2,152 $1,985 $272 (a)$(155)$4,254 (a)
Pre-tax operating margin (b)
39.1%51.4%16.1%N/M38.6%
Average assets$216,637 $148,243 $27,384 $71,093 $463,357 
(a)    Total fee and other revenue, total revenue and income before income taxes are net of income attributable to noncontrolling interests related to consolidated investment management funds of $29 million.
(b)    Income before income taxes divided by total revenue.
N/M – Not meaningful.
For the six months ended June 30, 2025
Securities
Services		(a)Market and Wealth ServicesInvestment
and Wealth Management		OtherConsolidated
(dollars in millions)(a)
Total fee and other revenue$3,445 $2,449 $1,498 (b)$52 $7,444 (b)
Net interest income (expense)1,305 1,003 82 (28)2,362 
Total revenue4,750 3,452 1,580 (b)24 9,806 (b)
Provision for credit losses(5)(2)2 6 1 
Noninterest expense3,174 1,793 1,367 124 6,458 
Income (loss) before income taxes$1,581 $1,661 $211 (b)$(106)$3,347 (b)
Pre-tax operating margin (c)
33.3%48.1%13.4%N/M34.2%
Average assets$200,273 $132,684 $26,760 $67,572 $427,289 
(a)    In the first quarter of 2026, we realigned clients in Managed Accounts Solutions from the Securities Services business segment to the Market and Wealth Services business segment. Prior period amounts were revised for comparability.
(b)    Total fee and other revenue, total revenue and income before income taxes are net of income attributable to noncontrolling interests related to consolidated investment management funds of $14 million.
(c)    Income before income taxes divided by total revenue.
N/M – Not meaningful.