v3.26.1
Derivative instruments (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Gains (Losses) Related to Hedging
The following table presents the pre-tax gains (losses) related to our fair value hedging activities recognized in the consolidated income statement.

Income statement impact of fair value hedges
(in millions)Location of gains (losses)2Q262Q25YTD26YTD25
Interest rate fair value hedges of available-for-sale securities
DerivativeInterest income$222 $(249)$440 $(647)
Hedged itemInterest income(221)249 (439)647 
Interest rate fair value hedges of long-term debt
DerivativeInterest expense(212)275 (354)686 
Hedged itemInterest expense212 (275)354 (686)
Interest rate fair value hedges of loans
DerivativeInterest income1 2 (4)(9)
Hedged itemInterest income(1)(2)4 9 
Gain (loss) recognized in the consolidated income statement due to fair value hedging relationships$1 $— $1 $— 
Impacts of Hedging Derivatives in Net Investment Hedging Relationships
The following table presents the pre-tax impact of hedging derivatives used in net investment and cash flow hedging relationships.

Impact of derivative instruments used in net investment and cash flow hedging relationships
(in millions)Gain (loss) recognized in accumulated OCILocation of gain or (loss) reclassified from accumulated OCI into income Gain (loss) reclassified from accumulated OCI into income
2Q262Q25YTD26YTD252Q262Q25YTD26YTD25
Net investment hedges
FX contracts$90 $(735)$312 $(1,111)Investment and other revenue$— $— $— $21 
Cash flow hedges
FX contracts$6 $(7)$(10)$(6)Staff expense and investment and other revenue$(12)$(1)$(17)$(4)
Interest rate contracts(9)— (24)— Net interest income1 — — — 
Total$(3)$(7)$(34)$(6)$(11)$(1)$(17)$(4)
Summary of Hedged Items in Fair Value Hedging Relationships
The following table presents information on the hedged items in fair value hedging relationships.

Hedged items in fair value hedging relationshipsCarrying amount of hedged
asset or liability
Hedge accounting basis adjustment increase (decrease) (a)
(in millions)June 30, 2026Dec. 31, 2025June 30, 2026Dec. 31, 2025
Available-for-sale securities (b)
$55,743 $46,420 $(1,280)$(910)
Loans (c)
$2,811 $2,939 $(5)$(9)
Long-term debt$28,522 $28,375 $(617)$(264)
(a)    Includes $244 million and $332 million of basis adjustment decreases on discontinued hedges associated with available-for-sale securities at June 30, 2026 and Dec. 31, 2025, respectively, and $11 million and $10 million of basis adjustment increases on discontinued hedges associated with long-term debt at June 30, 2026 and Dec. 31, 2025, respectively.
(b)    At June 30, 2026 and Dec. 31, 2025, the amortized cost of the available-for-sale securities included in closed portfolios subject to portfolio layer method hedging was $17.4 billion and $15.1 billion, respectively, of which the notional amount hedged was $11.9 billion and $8.9 billion, respectively. The cumulative basis adjustments for active hedging relationships associated with such hedges as of June 30, 2026 and Dec. 31, 2025 were a decrease of $156 million and an increase of $1 million, respectively.
(c)    At June 30, 2026 and Dec. 31, 2025, loans included in closed portfolios subject to portfolio layer method hedging were $2.8 billion and $2.9 billion, respectively, of which $1.4 billion and $1.4 billion, respectively, was designated as hedged. The cumulative basis adjustments for active hedging relationships associated with such hedges as of June 30, 2026 and Dec. 31, 2025 were a decrease of $5 million and $9 million, respectively.
Impact of Derivative Instruments on the Balance Sheet
The following table summarizes the notional amount and carrying values of our total derivatives portfolio.

Impact of derivative instruments on the balance sheetNotional valueAsset derivatives
fair value		Liability derivatives
fair value
June 30, 2026Dec. 31, 2025June 30, 2026Dec. 31, 2025June 30, 2026Dec. 31, 2025
(in millions)
Derivatives designated as hedging instruments: (a)(b)
Interest rate contracts$92,667 $74,525 $311 $305 $24 $— 
Foreign exchange contracts12,288 11,817 261 53 26 81 
Total derivatives designated as hedging instruments$572 $358 $50 $81 
Derivatives not designated as hedging instruments: (b)(c)
Interest rate contracts$251,628 $202,299 $791 $718 $1,018 $973 
Foreign exchange contracts1,501,798 1,131,252 8,836 5,517 8,666 5,351 
Equity contracts6,492 6,366 135 21 38 44 
Credit contracts249 279 — — 10 13 
Total derivatives not designated as hedging instruments$9,762 $6,256 $9,732 $6,381 
Total derivatives fair value (d)
$10,334 $6,614 $9,782 $6,462 
Effect of master netting agreements (e)
(6,797)(5,224)(7,098)(3,831)
Fair value after effect of master netting agreements$3,537 $1,390 $2,684 $2,631 
(a)    The fair value of asset derivatives and liability derivatives designated as hedging instruments is recorded as other assets and other liabilities, respectively, on the consolidated balance sheet.
(b)    For settled-to-market derivatives at clearing organizations, cash collateral exchanged is deemed a settlement of the derivative on a daily basis. The gross fair value of derivative assets and liabilities has been reduced by these cash settlements.
(c)    The fair value of asset derivatives and liability derivatives not designated as hedging instruments is recorded as trading assets and trading liabilities, respectively, on the consolidated balance sheet.
(d)    Fair values are on a gross basis, before consideration of master netting agreements, as required by ASC 815, Derivatives and Hedging.
(e)    Effect of master netting agreements includes cash collateral received and paid of $1,347 million and $1,648 million, respectively, at June 30, 2026, and $2,107 million and $714 million, respectively, at Dec. 31, 2025.
Revenue from Foreign Exchange and Other Trading
The following table presents our foreign exchange revenue and other trading revenue.

Foreign exchange revenue and other trading revenue
(in millions)2Q262Q25YTD26YTD25
Foreign exchange revenue$229 $213 $461 $369 
Other trading revenue59 59 153 130 
Fair Value of Derivative Contracts Falling under Early Termination Provisions that were in Net Liability Position
The following table shows the aggregate fair value of OTC derivative contracts in net liability positions that contained credit risk-contingent features and the value of collateral that has been posted.

June 30, 2026Dec. 31, 2025
(in millions)
Aggregate fair value of OTC derivatives in net liability positions (a)
$1,451 $381 
Collateral posted$1,840 $1,009 
(a)    Before consideration of cash collateral.
The following table shows the fair value of contracts falling under early termination provisions that were in net liability positions for three key ratings triggers.

Potential close-out exposures (fair value) (a)
June 30, 2026Dec. 31, 2025
(in millions)
If The Bank of New York Mellon’s rating changed to: (b)
A3/A-$104 $61 
Baa2/BBB$266 $252 
Ba1/BB+$1,322 $714 
(a)    The amounts represent potential total close-out values if The Bank of New York Mellon’s long-term issuer rating were to immediately drop to the indicated levels, and do not reflect collateral posted.
(b)    Represents ratings by Moody’s/S&P.
Offsetting Assets
The following tables present derivative instruments and financial instruments and their related offsets. There were no derivative instruments or financial instruments subject to a legally enforceable netting agreement for which we are not currently netting.

Offsetting of derivative assets and financial assets at June 30, 2026
Amount not offset on the balance sheet
Gross assets recognizedAmounts offset on the balance sheet Net assets recognized on the balance sheet
(in millions)(a)Net amount
Derivatives subject to netting arrangements:
Interest rate contracts$982 $843 $139 $40 $99 
Foreign exchange contracts8,473 5,856 2,617 195 2,422 
Equity and other contracts127 98 29 — 29 
Total derivatives subject to netting arrangements
9,582 6,797 2,785 235 2,550 
Total derivatives not subject to netting arrangements
752 — 752 — 752 
Total derivatives10,334 6,797 3,537 235 3,302 
Reverse repurchase agreements287,830 262,547 (b)25,283 25,251 32 
Securities borrowing38,238 14,584 23,654 22,679 975 
Total$336,402 $283,928 $52,474 $48,165 $4,309 
(a)    Includes the effect of netting agreements and net cash collateral received. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions.
(b)    Offsetting of reverse repurchase agreements relates to our involvement in the Fixed Income Clearing Corporation (“FICC”), where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system.


Offsetting of derivative assets and financial assets at Dec. 31, 2025
Amount not offset on the balance sheet
Gross assets recognizedAmounts offset on the balance sheetNet assets recognized on the balance sheet
(in millions)(a)Net amount
Derivatives subject to netting arrangements:
Interest rate contracts$874 $685 $189 $68 $121 
Foreign exchange contracts5,218 4,523 695 102 593 
Equity and other contracts17 16 1 1 — 
Total derivatives subject to netting arrangements
6,109 5,224 885 171 714 
Total derivatives not subject to netting arrangements
505 — 505 — 505 
Total derivatives6,614 5,224 1,390 171 1,219 
Reverse repurchase agreements281,361 254,532 (b)26,829 26,807 22 
Securities borrowing26,731 8,668 18,063 17,381 682 
Total$314,706 $268,424 $46,282 $44,359 $1,923 
(a)    Includes the effect of netting agreements and net cash collateral received. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions.
(b)    Offsetting of reverse repurchase agreements relates to our involvement in the FICC, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system.
Offsetting Liabilities
Offsetting of derivative liabilities and financial liabilities at June 30, 2026
Net liabilities recognized on the balance sheet
Gross liabilities recognizedAmounts offset on the balance sheet Amount not offset on the balance sheet
(in millions)(a)Net amount
Derivatives subject to netting arrangements:
Interest rate contracts$819 $495 $324 $29 $295 
Foreign exchange contracts8,200 6,568 1,632 546 1,086 
Equity and other contracts36 35 1 — 1 
Total derivatives subject to netting arrangements
9,055 7,098 1,957 575 1,382 
Total derivatives not subject to netting arrangements
727 — 727 — 727 
Total derivatives9,782 7,098 2,684 575 2,109 
Repurchase agreements281,158 262,547 (b)18,611 18,582 29 
Securities lending22,087 14,584 7,503 7,270 233 
Total$313,027 $284,229 $28,798 $26,427 $2,371 
(a)    Includes the effect of netting agreements and net cash collateral paid. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions.
(b)    Offsetting of repurchase agreements relates to our involvement in the FICC, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system.


Offsetting of derivative liabilities and financial liabilities at Dec. 31, 2025
Net liabilities recognized on the balance sheet
Gross liabilities recognizedAmounts offset on the balance sheetAmount not offset on the balance sheet
(in millions)(a)Net amount
Derivatives subject to netting arrangements:
Interest rate contracts$740 $456 $284 $44 $240 
Foreign exchange contracts5,040 3,348 1,692 79 1,613 
Equity and other contracts31 27 4 3 1 
Total derivatives subject to netting arrangements
5,811 3,831 1,980 126 1,854 
Total derivatives not subject to netting arrangements
651 — 651 — 651 
Total derivatives6,462 3,831 2,631 126 2,505 
Repurchase agreements269,352 254,532 (b)14,820 14,820 — 
Securities lending12,840 8,668 4,172 4,005 167 
Total$288,654 $267,031 $21,623 $18,951 $2,672 
(a)    Includes the effect of netting agreements and net cash collateral paid. The offset related to the OTC derivatives was allocated to the various types of derivatives based on the net positions.
(b)    Offsetting of repurchase agreements relates to our involvement in the FICC, where we settle government securities transactions on a net basis for payment and delivery through the Fedwire system.
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
The following table presents the contract value of repurchase agreements and securities lending transactions accounted for as secured borrowings by the type of collateral provided to counterparties.

Repurchase agreements and securities lending transactions accounted for as secured borrowings
June 30, 2026Dec. 31, 2025
Remaining contractual maturityTotalRemaining contractual maturityTotal
(in millions)Overnight and continuousUp to 30 days30-90 daysOver
90 days		Overnight and continuousUp to 30 days30-90 daysOver
90 days
Repurchase agreements:
U.S. Treasury$174,719 $180 $1,378 $2,269 $178,546 $207,600 $475 $1,420 $2,101 $211,596 
Agency RMBS95,052 119 433 405 96,009 51,130 136 237 441 51,944 
Corporate bonds70 214 761 701 1,746 119 55 1,256 557 1,987 
State and political subdivisions52 24 347 918 1,341 17 25 361 328 731 
Sovereign debt/sovereign guaranteed727 474 — — 1,201 541 416 — — 957 
U.S. government agencies117 — 96 119 332 72 4 3 61 140 
Other debt securities217 72 120 42 451 71 370 246 136 823 
Equity securities— 42 1,014 476 1,532 — 15 628 531 1,174 
Total $270,954 $1,125 $4,149 $4,930 $281,158 $259,550 $1,496 $4,151 $4,155 $269,352 
Securities lending:
U.S. Treasury$2,092 $— $— $— $2,092 $754 $— $— $— $754 
Corporate bonds988 — — — 988 783 — — — 783 
Agency RMBS— — — — — 102 — — — 102 
U.S. government agencies— — — — — 2 — — — 2 
Equity securities19,007 — — — 19,007 11,199 — — — 11,199 
Total $22,087 $— $— $— $22,087 $12,840 $— $— $— $12,840 
Total secured borrowings$293,041 $1,125 $4,149 $4,930 $303,245 $272,390 $1,496 $4,151 $4,155 $282,192