Derivatives (Tables)

3 Months Ended

Mar. 31, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional or Contractual Amounts and Fair Values of Derivatives

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, 2026					December 31, 2025
	Notional or contractual amount		Fair value			Notional or contractual amount	Fair value
			Derivative assets		Derivative liabilities		Derivative assets	Derivative liabilities
(in millions)
Derivatives designated as hedging instruments
Interest rate contracts	$	439,228	451		947	377,837	447	852
Commodity contracts	9,898		9		92	8,854	2	279
Foreign exchange contracts	5,551		4		226	6,455	24	180
Total derivatives designated as qualifying hedging instruments			464		1,265		473	1,311
Derivatives not designated as hedging instruments














Interest rate contracts	13,731,943		22,552		21,694	11,919,067	21,896	21,923
Commodity contracts	179,667		8,781		6,732	117,863	3,245	4,126
Equity contracts	618,429		19,471		19,214	634,436	20,788	22,714
Foreign exchange contracts	6,016,142		48,158		46,916	5,601,838	38,047	36,797
Credit contracts	68,078		118		65	62,336	81	85

Total derivatives not designated as hedging instruments			99,080		94,621		84,057	85,645
Total derivatives before netting			99,544		95,886		84,530	86,956
Netting			(77,213)		(81,400)		(62,720)	(73,332)
Total			$	22,331	14,486		21,810	13,624

Offsetting of Derivative Assets and Liabilities

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, 2026			December 31, 2025
(in millions)	Derivative Assets		Derivative Liabilities	Derivative Assets	Derivative 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 contracts	21,911		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 contracts	7,707		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 contracts	17,778		17,512	19,110	20,625
Foreign exchange contracts
OTC	47,702		46,758	37,437	36,757

Total foreign exchange contracts	47,702		46,758	37,437	36,757
Credit contracts
OTC	115		63	81	83

Total credit contracts	115		63	81	83
Total derivatives subject to enforceable master netting arrangements, gross	95,213		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, net	18,000		10,887	17,842	9,415
Derivatives not subject to enforceable master netting arrangements	4,331		3,599	3,968	4,209
Total derivatives recognized in consolidated balance sheet, net	22,331		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.

Gains (Losses) Recognized on Cash Flow Hedging Relationships

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)	Loans		Other interest income	Long-term debt	Derivative 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 OCI	N/A		N/A	N/A	N/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 OCI	N/A		N/A	N/A	N/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/A	593
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 OCI	N/A		N/A	N/A	N/A	444
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 OCI	N/A		N/A	N/A	N/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).

Gains (Losses) Recognized on Fair Value Hedging Relationships

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)		Deposits	Long-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 derivatives	25		19	(218)		—		(174)		N/A
Recognized on derivatives	517		(149)	(462)		—		(94)		—
Recognized on hedged items	(515)		152	463		—		100		N/A
Total gains (losses) (pre-tax) on interest rate contracts	27		22	(217)		—		(168)		—
Foreign exchange contracts
Amounts related to cash flows on derivatives	5		—	(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 contracts	5		—	(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/A		593
Interest rate contracts
Amounts related to cash flows on derivatives	64		25	(536)		—		(447)		N/A
Recognized on derivatives	(572)		41	2,044		—		1,513		—
Recognized on hedged items	568		(42)	(2,055)		—		(1,529)		N/A
Total gains (losses) (pre-tax) on interest rate contracts	60		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

Hedged Items in Fair Value Hedging Relationships

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 designated			Hedged 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.

Gains (Losses) on Economic Hedge and Other Derivatives

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)		2026		2025
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.

Net Gains (Losses) from Derivative Valuation Adjustments

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)		2026		2025
CVA		$	(62)	(23)
DVA		79		(18)
FVA		(9)		(21)
Total		$	8	(62)

Derivative Valuation Adjustments

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)

Sold Credit Derivatives

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 swaps	6,169		4,103
Total credit derivatives	$	23,746	6,949
December 31, 2025
Credit default swaps	$	12,568	922
Risk participation swaps	6,208		4,052
Total credit derivatives	$	18,776	4,974

Credit-Risk Contingent Features

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 posted	20.8		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.