Loans and asset quality (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Schedule of Loan Portfolio and Industry Concentrations of Credit Risk

The table below provides the details of our loan portfolio.

Loans	Sept. 30, 2021		Dec. 31, 2020
(in millions)
Domestic:
Commercial	$	1,659	$	1,356
Commercial real estate	6,081		6,056
Financial institutions	4,049		4,495
Lease financings	297		431
Wealth management loans and mortgages	17,819		16,211
Other residential mortgages	317		389
Overdrafts	1,667		651
Other	2,308		1,823
Margin loans	17,915		13,141
Total domestic	52,112		44,553
Foreign:
Commercial	16		73
Commercial real estate	311		—
Financial institutions	5,399		6,750
Lease financings	476		559
Wealth management loans and mortgages	168		146
Other (primarily overdrafts)	2,940		2,113
Margin loans	2,906		2,275
Total foreign	12,216		11,916
Total loans (a)	$	64,328	$	56,469

(a)    Net of unearned income of $247 million at Sept. 30, 2021 and $274 million at Dec. 31, 2020 primarily related to domestic and foreign lease financings.

Summary of Transactions in the Allowance for Credit Losses

Allowance for credit losses activity for the quarter ended Sept. 30, 2021									Wealth management loans and mortgages		Other residential mortgages
(in millions)	Commercial		Commercial real estate		Financial institutions		Lease financings						Other		Total
Beginning balance	$	8	$	289	$	7	$	2	$	5	$	8	$	—	$	319
Charge-offs	—		—		—		—		—		—		—		—
Recoveries	—		—		—		—		—		1		—		1
Net recoveries	—		—		—		—		—		1		—		1
Provision (a)	2		(63)		2		(1)		—		(3)		16		(47)
Ending balance (b)	$	10	$	226	$	9	$	1	$	5	$	6	$	16	$	273
Allowance for:
Loan losses	$	2	$	199	$	5	$	1	$	4	$	6	$	16	$	233
Lending-related commitments	8		27		4		—		1		—		—		40
Individually evaluated for impairment:
Loan balance (c)	$	—	$	25	$	—	$	—	$	18	$	1	$	16	$	60
Allowance for loan losses	—		3		—		—		—		—		16		19

(a)    Does not include the provision for credit losses related to other financial instruments of $2 million for the third quarter 2021.

(b)    Includes $4 million of allowance for credit losses related to foreign loans, primarily financial institutions.

(c)    Includes collateral-dependent loans of $60 million with $52 million of collateral at fair value.

Allowance for credit losses activity for the quarter ended June 30, 2021									Wealth management loans and mortgages		Other residential mortgages
(in millions)	Commercial		Commercial real estate		Financial institutions		Lease financings						Total
Beginning balance	$	11	$	365	$	7	$	2	$	6	$	9	$	400
Charge-offs	—		—		—		—		—		(1)		(1)
Recoveries	—		—		2		—		—		1		3
Net recoveries	—		—		2		—		—		—		2
Provision (a)	(3)		(76)		(2)		—		(1)		(1)		(83)
Ending balance (b)	$	8	$	289	$	7	$	2	$	5	$	8	$	319
Allowance for:
Loan losses	$	3	$	248	$	4	$	2	$	4	$	8	$	269
Lending-related commitments	5		41		3		—		1		—		50
Individually evaluated for impairment:
Loan balance (c)	$	—	$	26	$	—	$	—	$	17	$	1	$	44
Allowance for loan losses	—		3		—		—		—		—		3

(a)    Does not include the provision for credit losses benefit related to other financial instruments of $3 million for the second quarter 2021.

(b)    Includes $4 million of allowance for credit losses related to foreign loans, primarily financial institutions.

(c)    Includes collateral-dependent loans of $44 million with $50 million of collateral at fair value.

Allowance for credit losses activity for the quarter ended Sept. 30, 2020									Wealth management loans and mortgages		Other residential mortgages		Total
(in millions)	Commercial		Commercial real estate		Financial institutions		Lease financings
Beginning balance	$	40	$	372	$	16	$	3	$	11	$	12	$	454
Charge-offs	—		—		—		—		—		—		—
Recoveries	—		—		—		—		—		1		1
Net recoveries	—		—		—		—		—		1		1
Provision (a)	(13)		14		(5)		—		4		5		5
Ending balance (b)	$	27	$	386	$	11	$	3	$	15	$	18	$	460
Allowance for:
Loan losses	$	14	$	270	$	7	$	3	$	13	$	18	$	325
Lending-related commitments	13		116		4		—		2		—		135
Individually evaluated for impairment:
Loan balance (c)	$	—	$	—	$	—	$	—	$	17	$	—	$	17
Allowance for loan losses	—		—		—		—		—		—		—

(a)    Does not include the provision for credit losses related to other financial instruments of $4 million for the third quarter 2020.

(b)    Includes $8 million of allowance for credit losses related to foreign loans, primarily financial institutions.

(c)    Includes collateral-dependent loans of $17 million with $25 million of collateral at fair value.

Allowance for credit losses activity for the nine months ended Sept. 30, 2021									Wealth management loans and mortgages		Other residential mortgages		Other		Total
(in millions)	Commercial		Commercial real estate		Financial institutions		Lease financings
Beginning balance	$	16	$	430	$	10	$	2	$	8	$	13	$	—	$	479
Charge-offs	—		—		—		—		(1)		(1)		—		(2)
Recoveries	—		—		2		—		—		4		—		6
Net recoveries (charge-offs)	—		—		2		—		(1)		3		—		4
Provision (a)	(6)		(204)		(3)		(1)		(2)		(10)		16		(210)
Ending balance	$	10	$	226	$	9	$	1	$	5	$	6	$	16	$	273

(a)    Does not include provision for credit losses benefit related to other financial instruments of $4 million for the nine months ended Sept. 30, 2021.

Allowance for credit losses activity for the nine months ended Sept. 30, 2020									Wealth management loans and mortgages		Other residential mortgages		Foreign		Total
(in millions)	Commercial		Commercial real estate		Financial institutions		Lease financings
Balance at Dec. 31, 2019	$	60	$	76	$	20	$	3	$	20	$	13	$	24	$	216
Impact of adopting ASU 2016-13	(43)		14		(6)		—		(12)		2		(24)		(69)
Balance at Jan. 1, 2020	17		90		14		3		8		15		—		147
Charge-offs	—		—		—		—		—		—		—		—
Recoveries	—		—		—		—		—		4		—		4
Net recoveries	—		—		—		—		—		4		—		4
Provision (a)	10		296		(3)		—		7		(1)		—		309
Ending balance	$	27	$	386	$	11	$	3	$	15	$	18	$	—	$	460

(a)    Does not include provision for credit losses related to other financial instruments of $12 million for the nine months ended Sept. 30, 2020.

Distribution of Nonperforming Assets

The table below presents our nonperforming assets.

Nonperforming assets	Sept. 30, 2021						Dec. 31, 2020
	Recorded investment						Recorded investment
	With an allowance		Without an allowance				With an allowance		Without an allowance
(in millions)					Total						Total
Nonperforming loans:
Other residential mortgages	$	39	$	1	$	40	$	57	$	—	$	57
Wealth management loans and mortgages	8		18		26		10		20		30
Commercial real estate	25		—		25		1		—		1
Other	16		—		16		—		—		—
Total nonperforming loans	88		19		107		68		20		88
Other assets owned	—		1		1		—		1		1
Total nonperforming assets	$	88	$	20	$	108	$	68	$	21	$	89

Information about Past Due Loans

The table below presents our past due loans.

Past due loans and still accruing interest	Sept. 30, 2021								Dec. 31, 2020
	Days past due						Total past due		Days past due						Total past due
(in millions)	30-59		60-89		≥90				30-59		60-89		≥90
Wealth management loans and mortgages	$	73	$	11	$	—	$	84	$	54	$	1	$	—	$	55
Commercial real estate	27		—		—		27		19		16		—		35
Financial institutions	10		—		—		10		11		—		—		11
Other residential mortgages	3		—		—		3		3		1		—		4
Total past due loans	$	113	$	11	$	—	$	124	$	87	$	18	$	—	$	105

Financing Receivable Credit Quality Indicators

The tables below provide information about the credit profile of the loan portfolio by the period of origination.

Credit profile of the loan portfolio													Sept. 30, 2021
													Revolving loans
	Originated, at amortized cost												Amortized cost		Converted to term loans – Amortized cost				Accrued interest receivable
(in millions)	YTD21		2020		2019		2018		2017		Prior to 2017						Total (a)
Commercial:
Investment grade	$	401	$	20	$	—	$	—	$	195	$	57	$	818	$	—	$	1,491
Non-investment grade	90		23		—		—		—		—		71		—		184
Total commercial	491		43		—		—		195		57		889		—		1,675		$	—
Commercial real estate:
Investment grade	1,265		524		793		166		275		651		670		—		4,344
Non-investment grade	613		92		625		355		74		106		157		26		2,048
Total commercial real estate	1,878		616		1,418		521		349		757		827		26		6,392		8
Financial institutions:
Investment grade	759		—		—		—		—		72		6,949		—		7,780
Non-investment grade	45		—		6		—		—		—		1,617		—		1,668
Total financial institutions	804		—		6		—		—		72		8,566		—		9,448		10
Wealth management loans and mortgages:
Investment grade	67		15		74		4		153		125		9,500		—		9,938
Non-investment grade	2		—		—		—		—		—		28		—		30
Wealth management mortgages	1,468		1,036		899		561		944		3,084		27		—		8,019
Total wealth management loans and mortgages	1,537		1,051		973		565		1,097		3,209		9,555		—		17,987		28
Lease financings	23		81		15		11		4		639		—		—		773		—
Other residential mortgages	—		—		—		—		—		317		—		—		317		1
Other loans	—		—		—		—		—		—		2,362		—		2,362		1
Margin loans	6,254		800		—		—		—		—		13,767		—		20,821		8
Total loans	$	10,987	$	2,591	$	2,412	$	1,097	$	1,645	$	5,051	$	35,966	$	26	$	59,775	$	56

(a)    Excludes overdrafts of $4,553 million. Overdrafts occur on a daily basis primarily in the custody and securities clearance business and are generally repaid within two business days.

Credit profile of the loan portfolio													Dec. 31, 2020
													Revolving loans
	Originated, at amortized cost												Amortized cost		Converted to term loans – Amortized cost				Accrued interest receivable
(in millions)	2020		2019		2018		2017		2016		Prior to 2016						Total (a)
Commercial:
Investment grade	$	128	$	18	$	71	$	420	$	57	$	—	$	493	$	—	$	1,187
Non-investment grade	142		—		6		—		—		—		94		—		242
Total commercial	270		18		77		420		57		—		587		—		1,429		$	2
Commercial real estate:
Investment grade	778		1,010		458		543		312		346		127		—		3,574
Non-investment grade	285		619		643		159		376		144		229		27		2,482
Total commercial real estate	1,063		1,629		1,101		702		688		490		356		27		6,056		8
Financial institutions:
Investment grade	132		146		47		125		13		156		8,760		—		9,379
Non-investment grade	84		36		—		—		—		—		1,746		—		1,866
Total financial institutions	216		182		47		125		13		156		10,506		—		11,245		12
Wealth management loans and mortgages:
Investment grade	18		85		11		147		59		112		7,786		—		8,218
Non-investment grade	—		—		—		—		—		—		54		—		54
Wealth management mortgages	1,117		1,044		637		1,188		1,515		2,546		38		—		8,085
Total wealth management loans and mortgages	1,135		1,129		648		1,335		1,574		2,658		7,878		—		16,357		27
Lease financings	116		18		14		9		20		813		—		—		990		—
Other residential mortgages	—		—		—		—		—		389		—		—		389		1
Other loans	—		—		—		—		—		—		1,904		—		1,904		1
Margin loans	4,614		—		—		—		—		—		10,802		—		15,416		8
Total loans	$	7,414	$	2,976	$	1,887	$	2,591	$	2,352	$	4,506	$	32,033	$	27	$	53,786	$	59

(a)    Excludes overdrafts of $2,683 million. Overdrafts occur on a daily basis primarily in the custody and securities clearance business and are generally repaid within two business days.