v3.26.1
Derivatives
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives
Note 10:  Derivatives
We use derivatives to manage exposure to market risk, including interest rate risk, commodity and equity price risk, foreign currency risk, and credit risk, and to assist customers with their risk management objectives. We designate certain derivatives as hedging instruments in qualifying hedge accounting relationships (fair value or cash flow hedges). Our remaining derivatives consist of economic hedges that do not qualify for, or we have elected not to apply, hedge accounting and derivatives held for customer accommodation trading purposes. For additional information on our derivative activities, see Note 13 (Derivatives) in our 2025 Form 10-K.
Table 10.1 presents the total notional or contractual amounts and fair values for our derivatives. Derivative transactions can be measured in terms of the notional amount, but this amount is not recognized on our consolidated balance sheet and is not, when viewed in isolation, a meaningful measure of the risk profile of the instruments. The notional amount is generally not exchanged, but is used only as the basis on which derivative cash flows are determined.
Table 10.1: Notional or Contractual Amounts and Fair Values of Derivatives
March 31, 2026December 31, 2025
Notional or contractual amountFair value Notional or contractual amountFair value 
Derivative assetsDerivative liabilitiesDerivative assetsDerivative liabilities
(in millions)
Derivatives designated as hedging instruments
Interest rate contracts$439,228 451 947 377,837 447 852 
Commodity contracts9,898 9 92 8,854 2 279 
Foreign exchange contracts5,551 4 226 6,455 24 180 
Total derivatives designated as qualifying hedging instruments464 1,265 473 1,311 
Derivatives not designated as hedging instruments
Interest rate contracts13,731,943 22,552 21,694 11,919,067 21,896 21,923 
Commodity contracts179,667 8,781 6,732 117,863 3,245 4,126 
Equity contracts618,429 19,471 19,214 634,436 20,788 22,714 
Foreign exchange contracts6,016,142 48,158 46,916 5,601,838 38,047 36,797 
Credit contracts68,078 118 65 62,336 81 85 
Total derivatives not designated as hedging instruments99,080 94,621 84,057 85,645 
Total derivatives before netting99,544 95,886 84,530 86,956 
Netting(77,213)(81,400)(62,720)(73,332)
Total$22,331 14,486 21,810 13,624 
Balance Sheet Offsetting
We execute substantially all of our derivative transactions under master netting arrangements. When legally enforceable, these master netting arrangements give the ability, in the event of default by the counterparty, to liquidate securities held as collateral and to offset receivables and payables with the same counterparty. We reflect all derivative balances and related cash collateral subject to legally enforceable master netting arrangements on a net basis within trading assets and trading liabilities on our consolidated balance sheet. We do not net non-cash collateral that we receive or pledge against derivative balances on our consolidated balance sheet.

For disclosure purposes, we present Total derivatives, net which represents the aggregate of our net exposure to each counterparty after considering the balance sheet netting adjustments and any non-cash collateral. We manage derivative exposure by monitoring the credit risk associated with each counterparty using counterparty-specific credit risk limits, using master netting arrangements and obtaining collateral.
Table 10.2 provides information on the fair values of derivative assets and liabilities subject to legally enforceable master netting arrangements with the same counterparty, the balance sheet netting adjustments and the resulting net fair value amount recognized on our consolidated balance sheet, as well as the non-cash collateral associated with such arrangements. In addition to the netting amounts included in the table, we also have balance sheet netting related to resale and repurchase agreements that are disclosed within Note 14 (Securities Financing Activities).
Table 10.2: Offsetting of Derivative Assets and Liabilities
March 31, 2026December 31, 2025
(in millions)Derivative AssetsDerivative LiabilitiesDerivative AssetsDerivative Liabilities
 Interest rate contracts
 Over-the-counter (OTC)
$21,028 20,237 20,594 20,835 
 OTC cleared
832 1,173 445 366 
 Exchange traded
51 27 58 65 
 Total interest rate contracts21,911 21,437 21,097 21,266 
 Commodity contracts
 OTC
5,819 5,258 2,432 3,764 
 Exchange traded
1,888 1,259 405 252 
 Total commodity contracts7,707 6,517 2,837 4,016 
 Equity contracts
 OTC
6,786 9,405 6,836 12,149 
 Exchange traded
10,992 8,107 12,274 8,476 
 Total equity contracts17,778 17,512 19,110 20,625 
 Foreign exchange contracts
 OTC
47,702 46,758 37,437 36,757 
 Total foreign exchange contracts47,702 46,758 37,437 36,757 
 Credit contracts
 OTC
115 63 81 83 
 Total credit contracts115 63 81 83 
Total derivatives subject to enforceable master netting arrangements, gross95,213 92,287 80,562 82,747 
 Less: Gross amounts offset
 Counterparty netting (1)(70,373)(70,203)(57,957)(57,777)
 Cash collateral netting(6,840)(11,197)(4,763)(15,555)
Total derivatives subject to enforceable master netting arrangements, net18,000 10,887 17,842 9,415 
Derivatives not subject to enforceable master netting arrangements4,331 3,599 3,968 4,209 
Total derivatives recognized in consolidated balance sheet, net22,331 14,486 21,810 13,624 
 Non-cash collateral(5,386)(3,673)(4,906)(3,091)
Total derivatives, net$16,945 10,813 16,904 10,533 
(1)Represents amounts with counterparties subject to enforceable master netting arrangements that have been offset on our consolidated balance sheet, including portfolio level valuation adjustments related to customer accommodation and other trading derivatives. These valuation adjustments were substantially all related to interest rate and foreign exchange contracts. Table 10.7 and Table 10.8 present information related to derivative valuation adjustments.
Fair Value and Cash Flow Hedges
For fair value hedges, we use interest rate swaps to convert certain of our fixed-rate long-term debt and time certificates of deposit to floating rates to hedge our exposure to interest rate risk. We also enter into cross-currency swaps, cross-currency interest rate swaps and forward contracts to hedge our exposure to foreign currency risk and interest rate risk associated with the issuance of non-U.S. dollar denominated long-term debt. We also enter into futures contracts, forward contracts, and swap contracts to hedge our exposure to the price risk of physical commodities inventory included in trading assets on our consolidated balance sheet. In addition, we use interest rate swaps, cross-currency swaps, cross-currency interest rate swaps and forward contracts to hedge against changes in fair value of certain investments in AFS debt securities due to changes in interest rates, foreign currency rates, or both. For certain fair value hedges of interest rate risk, we use the portfolio layer method to hedge stated amounts of closed portfolios of AFS debt securities. For certain fair value hedges of foreign currency risk, changes in fair value of cross-currency swaps and forward contracts attributable to changes in cross-currency basis spreads and the spot-forward difference, respectively, are excluded from the assessment of hedge effectiveness. Excluded components are either recognized in other comprehensive income (OCI) and amortized into earnings over the life of the derivative or
recognized directly in earnings. See Note 20 (Other Comprehensive Income) for the amounts recognized in OCI.

For cash flow hedges, we use interest rate swaps and swaptions to hedge the variability in interest payments received on certain interest-earning deposits with banks and certain floating-rate commercial loans. We also use cross-currency swaps to hedge variability in interest payments on fixed-rate foreign currency-denominated long-term debt due to changes in foreign exchange rates. For certain cash flow hedges of interest rate risk, changes in fair value of swaptions attributable to changes in time value and volatility are excluded from the assessment of hedge effectiveness and recognized in OCI. See Note 20 (Other Comprehensive Income) for the amounts recognized in OCI.

We estimate $339 million pre-tax of deferred net losses related to cash flow hedges in OCI at March 31, 2026, will be reclassified into net interest income during the next 12 months. For cash flow hedges as of March 31, 2026, we are hedging our interest rate and foreign currency exposure to the variability of future cash flows for all forecasted transactions for a maximum of approximately 9 years. For additional information on our accounting hedges, see Note 1 (Summary of Significant Accounting Policies) in our 2025 Form 10-K.
Table 10.3 and Table 10.4 show the net gains (losses) related to derivatives in cash flow and fair value hedging relationships, respectively.
Table 10.3: Gains (Losses) Recognized on Cash Flow Hedging Relationships
Net interest income
Total recognized in net income
Total recognized in OCI
(in millions)LoansOther interest incomeLong-term debtDerivative gains (losses)Derivative gains (losses)
Quarter ended March 31, 2026
Total amounts presented in the consolidated statement of income and other comprehensive income
$13,809 226 (2,386)N/A(465)
Interest rate contracts:
Realized gains (losses) (pre-tax) reclassified from OCI into net income(41)(38)— (79)79 
Net unrealized gains (losses) (pre-tax) recognized in OCIN/AN/AN/AN/A(557)
Total gains (losses) (pre-tax) on interest rate contracts(41)(38)— (79)(478)
Foreign exchange contracts:
Realized gains (losses) (pre-tax) reclassified from OCI into net income— — (1)(1)1 
Net unrealized gains (losses) (pre-tax) recognized in OCIN/AN/AN/AN/A— 
Total gains (losses) (pre-tax) on foreign exchange contracts— — (1)(1)1 
Total gains (losses) (pre-tax) recognized on cash flow hedges$(41)(38)(1)(80)(477)
Quarter ended March 31, 2025
Total amounts presented in the consolidated statement of income and other comprehensive income (1)$13,357 239 (2,582)N/A593 
Interest rate contracts:
Realized gains (losses) (pre-tax) reclassified from OCI into net income(85)(55)— (140)140 
Net unrealized gains (losses) (pre-tax) recognized in OCIN/AN/AN/AN/A444 
Total gains (losses) (pre-tax) on interest rate contracts(85)(55)— (140)584 
Foreign exchange contracts:
Realized gains (losses) (pre-tax) reclassified from OCI into net income— — (2)(2)2 
Net unrealized gains (losses) (pre-tax) recognized in OCIN/AN/AN/AN/A— 
Total gains (losses) (pre-tax) on foreign exchange contracts— — (2)(2)2 
Total gains (losses) (pre-tax) recognized on cash flow hedges$(85)(55)(2)(142)586 
(1)In fourth quarter 2025, we changed the presentation of certain items on our consolidated balance sheet, including trading assets and liabilities, with corresponding changes to our consolidated statement of income. Prior period balances have been revised to conform with the current period presentation. For additional information, see Note 1 (Summary of Significant Accounting Policies).
Table 10.4: Gains (Losses) Recognized on Fair Value Hedging Relationships
Net interest income
Noninterest income
Total recognized in net income
Total recognized in OCI
(in millions)
Available-for-sale and held-to-maturity debt securities (1)
DepositsLong-term debt
Net gains from trading and securities (1)
Derivative gains (losses)Derivative gains (losses)
Quarter ended March 31, 2026
Total amounts presented in the consolidated statement of income
and other comprehensive income
$3,544 (4,974)(2,386)1,523 N/A(465)
Interest rate contracts
Amounts related to cash flows on derivatives25 19 (218)— (174)N/A
Recognized on derivatives517 (149)(462)— (94)— 
Recognized on hedged items(515)152 463 — 100 N/A
Total gains (losses) (pre-tax) on interest rate contracts27 22 (217)— (168)— 
Foreign exchange contracts
Amounts related to cash flows on derivatives5 — (22)— (17)N/A
Recognized on derivatives— — (49)(41)(90)12 
Recognized on hedged items— — 44 41 85 N/A
Total gains (losses) (pre-tax) on foreign exchange contracts5 — (27)— (22)12 
Commodity contracts
Recognized on derivatives— — — 500 500 — 
Recognized on hedged items— — — (509)(509)N/A
Total gains (losses) (pre-tax) on commodity contracts— — — (9)(9)— 
Total gains (losses) (pre-tax) recognized on fair value hedges$32 22 (244)(9)(199)12 
Quarter ended March 31, 2025
Total amounts presented in the consolidated statement of income
and other comprehensive income (1)
$3,321 (5,209)(2,582)894 N/A593 
Interest rate contracts
Amounts related to cash flows on derivatives64 25 (536)— (447)N/A
Recognized on derivatives(572)41 2,044 — 1,513 — 
Recognized on hedged items568 (42)(2,055)— (1,529)N/A
Total gains (losses) (pre-tax) on interest rate contracts60 24 (547)— (463)— 
Foreign exchange contracts
Amounts related to cash flows on derivatives— — (18)— (18)N/A
Recognized on derivatives— — (1)36 35 7 
Recognized on hedged items— — (5)(36)(41)N/A
Total gains (losses) (pre-tax) on foreign exchange contracts— — (24)— (24)7 
Commodity contracts
Recognized on derivatives— — — (1,338)(1,338)— 
Recognized on hedged items— — — 1,349 1,349 N/A
Total gains (losses) (pre-tax) on commodity contracts— — — 11 11 — 
Total gains (losses) (pre-tax) recognized on fair value hedges$60 24 (571)11 (476)7 
(1)In fourth quarter 2025, we changed the presentation of certain items on our consolidated balance sheet, including trading assets and liabilities, with corresponding changes to our consolidated statement of income. Prior period balances have been revised to conform with the current period presentation. For additional information, see Note 1 (Summary of Significant Accounting Policies).
Table 10.5 shows the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships.
Table 10.5: Hedged Items in Fair Value Hedging Relationships
Hedged items currently designatedHedged items no longer designated
(in millions)
Carrying amount
of assets/(liabilities) (1)(2)
Hedge accounting
basis adjustment
assets/(liabilities) (3)
Carrying amount
of assets/(liabilities) (1)(2)
Hedge accounting
basis adjustment
assets/(liabilities)
March 31, 2026
Available-for-sale debt securities (4)(5)$114,455 (791)24,286 274 
Trading assets (6)10,539 1,082 — — 
Interest-bearing deposits
(82,741)22 — — 
Long-term debt(161,198)10,291 — — 
December 31, 2025
Available-for-sale debt securities (4)(5)
$94,388 (698)21,489 285 
Trading assets (6)9,107 1,726 — — 
Interest-bearing deposits
(64,595)(130)— — 
Long-term debt(154,397)9,825 — — 
(1)Does not include the carrying amount of hedged items where only foreign currency risk is the designated hedged risk. The carrying amount excluded $0 and $892 million for AFS debt securities where only foreign currency risk is the designated hedged risk as of March 31, 2026, and December 31, 2025, respectively.
(2)Represents the full carrying amount of the hedged asset or liability item as of the balance sheet date, except for circumstances in which only a portion of the asset or liability was designated as the hedged item in which case only the portion designated is presented.
(3)The balance includes $(536) million, $144 million, and $495 million of AFS debt securities, trading assets, and long-term debt cumulative basis adjustments, respectively, as of March 31, 2026, and $10 million, $100 million, and $455 million of AFS debt securities, trading assets, and long-term debt cumulative basis adjustments, respectively, as of December 31, 2025, on terminated hedges whereby the hedged items have subsequently been re-designated into existing hedges.
(4)Carrying amount represents the amortized cost.
(5)At March 31, 2026, and December 31, 2025, the amortized cost of closed portfolios of AFS debt securities using the portfolio layer method was $53.4 billion and $43.2 billion, respectively, of which $17.7 billion and $15.3 billion was designated as hedged, respectively. The balance includes cumulative basis adjustments of $(41) million and $75 million as of March 31, 2026, and December 31, 2025, respectively, related to certain AFS debt securities designated as the hedged item in a fair value hedge using the portfolio layer method.
(6)Trading assets consists of hedged physical commodities inventory.

Derivatives Not Designated as Hedging Instruments
Derivatives not designated as hedging instruments include economic hedges and derivatives entered into for customer accommodation trading purposes.

Economic hedge and other derivatives do not qualify for, or we have elected not to apply, hedge accounting. We use economic hedge derivatives to manage our non-trading exposures to interest rate risk, equity price risk, foreign currency risk, and credit risk. Other derivatives include non-economic hedges not part of our portfolio of customer accommodation trading derivatives.
For additional information on customer accommodation trading derivatives, see Note 13 (Derivatives) in our 2025 Form 10-K.

Table 10.6 shows the net gains (losses) related to economic hedge and other derivatives. Gains (losses) on customer accommodation trading derivatives are excluded from
Table 10.6. See Note 17 (Revenue and Expenses) for additional information on net gains and (losses) from trading activities.
Table 10.6: Gains (Losses) on Economic Hedge and Other Derivatives
Quarter ended March 31,
(in millions)20262025
Interest rate contracts (1)$26 223 
Equity contracts (2)(82)(232)
Foreign exchange contracts (3)409 (284)
Credit contracts (4)(5)(5)
Net gains (losses) recognized related to economic hedge derivatives$348 (298)
(1)Includes economic hedge and other derivative gains and (losses) related to mortgage banking activities, which were recognized in mortgage banking noninterest income. These activities include derivative loan commitments and hedges of residential MSRs, residential mortgage LHFS, derivative loan commitments, and other interests held. For additional information on our mortgage banking interest rate contracts, see Note 6 (Mortgage Banking Activities). Other derivative gains and (losses) not related to mortgage banking were recognized in other noninterest income.
(2)Includes derivative gains and (losses) used to economically hedge the deferred compensation plan liabilities, which were recognized in personnel noninterest expense, and other derivative instruments related to our previous sales of shares of Visa Inc. Class B common stock, which were recognized in other noninterest income.
(3)Includes derivatives used to mitigate foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and (losses) were recognized in net gains from trading and securities within noninterest income.
(4)Includes credit derivatives used to hedge certain loan exposures. Gains and (losses) were recognized in other noninterest income.
DERIVATIVE VALUATION ADJUSTMENTS. We incorporate certain adjustments in determining the fair value of our derivatives, including credit valuation adjustments (CVA) to reflect counterparty credit risk related to derivative assets, debit valuation adjustments (DVA) to reflect Wells Fargo’s own credit risk related to derivative liabilities, and funding valuation adjustments (FVA) to reflect the funding cost of uncollateralized or partially collateralized derivative assets and liabilities. CVA, which considers the effects of enforceable master netting agreements and collateral arrangements, reflects market-based views of the credit quality of each counterparty. We estimate CVA based on observed credits spreads in the credit default swap market and indices indicative of the credit quality of the counterparties to our derivatives.

Table 10.7 presents the impact of derivative valuation adjustments (excluding the effect of any related hedges), which are included in net gains (losses) from trading and securities on the consolidated statement of income. For additional information, see Note 17 (Revenue and Expenses).
Table 10.7: Net Gains (Losses) from Derivative Valuation Adjustments
Quarter ended March 31,
(in millions)20262025
CVA$(62)(23)
DVA79 (18)
FVA(9)(21)
Total$8 (62)
Table 10.8 presents the impact of derivative valuation adjustments on derivative fair values.
Table 10.8: Derivative Valuation Adjustments
Contra Liability (Contra Asset)
(in millions)Mar 31,
2026		Dec 31,
2025
CVA
$(348)(286)
DVA
279 200 
FVA, net(102)(93)
Total derivative valuation adjustments$(171)(179)
Credit Derivatives
Credit derivative contracts transfer the credit risk of a reference asset or entity from one party (the purchaser of credit protection) to another party (the seller of credit protection). We use credit derivatives to assist customers in managing their risks, to manage our counterparty credit risk, and to hedge certain loan exposures. We act as both a purchaser and seller of credit protection. We may purchase and sell credit protection on corporate debt obligations through the use of credit default swaps, risk participation swaps or other credit derivatives. As a seller of credit protection, we would be required to perform under the sold credit derivatives in the event of default by the referenced obligors, such as bankruptcy, capital restructuring or lack of principal and/or interest payment.
Table 10.9 provides details of sold credit derivatives.
Table 10.9: Sold Credit Derivatives
Credit protection sold – Notional amount
(in millions)
Total
Non-investment grade
March 31, 2026
Credit default swaps$17,577 2,846 
Risk participation swaps6,169 4,103 
Total credit derivatives$23,746 6,949 
December 31, 2025
Credit default swaps$12,568 922 
Risk participation swaps6,208 4,052 
Total credit derivatives$18,776 4,974 
Total credit protection sold represents the estimated maximum exposure to loss that would be incurred if, upon an event of default, the value of our interests and any associated collateral declined to zero. Maximum exposure does not take into consideration any recovery value from the referenced obligation or offset from collateral held or any economic hedges. Non-investment grade amounts represent those credit derivatives with a higher risk of us being required to perform under the terms of the credit derivative based on the risk of the underlying assets. We consider the credit risk to be low if the underlying assets referenced by the credit derivative have an external rating that is investment grade. If an external rating is not available, we classify the credit derivative as non-investment grade.

We manage our maximum exposure to sold credit derivatives by requiring collateral from our counterparties, which may include cash and non-cash collateral, and entering into purchased credit derivatives with identical or similar reference positions in order to achieve our desired credit risk profile. Our credit risk management approach is designed to provide the ability to recover amounts that would be paid under sold credit derivatives.
Credit-Risk Contingent Features
Certain of our derivative contracts contain provisions whereby if the credit rating of our debt were to be downgraded by certain major credit rating agencies, the counterparty could demand additional collateral or require termination or replacement of derivative instruments in a net liability position. Table 10.10 illustrates our exposure to OTC bilateral derivative contracts with credit-risk contingent features, collateral we have posted, and the additional collateral we would be required to post if the credit rating of our debt was downgraded below investment grade.
Table 10.10: Credit-Risk Contingent Features
(in billions)Mar 31,
2026		Dec 31,
2025
Net derivative liabilities with credit-risk contingent features$24.0 26.3 
Collateral posted20.8 22.7 
Additional collateral to be posted upon a below investment grade credit rating (1)3.2 3.7 
(1)Any credit rating below investment grade requires us to post the maximum amount of collateral.