Interest Income and Interest Expense (Tables)

12 Months Ended

Dec. 31, 2020

Interest Income (Expense), Net [Abstract]

Details of interest income and interest expense

The following table presents the components of interest income and interest expense:

Year ended December 31, (in millions)	2020		2019		2018
Interest income
Loans(a)(b)	$	43,758	$	51,855	$	49,032
Taxable securities	7,843		7,962		5,653
Non-taxable securities(c)	1,184		1,329		1,595
Total investment securities(a)	9,027		9,291		7,248
Trading assets - debt instruments(b)	7,832		9,141		7,146
Federal funds sold and securities purchased under resale agreements	2,436		6,146		3,819
Securities borrowed(d)	(302)		1,574		913
Deposits with banks	749		3,887		5,907
All other interest-earning assets(b)(e)	1,023		2,146		2,035
Total interest income	$	64,523	$	84,040	$	76,100
Interest expense
Interest bearing deposits	$	2,357	$	8,957	$	5,973
Federal funds purchased and securities loaned or sold under repurchase agreements	1,058		4,630		3,066
Short-term borrowings(f)	372		1,248		1,144
Trading liabilities - debt and all other interest-bearing liabilities(d)(g)	195		2,585		2,387
Long-term debt	5,764		8,807		7,978
Beneficial interest issued by consolidated VIEs	214		568		493
Total interest expense	$	9,960	$	26,795	$	21,041
Net interest income	$	54,563	$	57,245	$	55,059
Provision for credit losses	17,480		5,585		4,871
Net interest income after provision for credit losses	$	37,083	$	51,660	$	50,188

(a)Includes the amortization/accretion of unearned income (e.g., purchase premiums/discounts, net deferred fees/costs, and others).

(b)In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation.

(c)Represents securities that are tax-exempt for U.S. federal income tax purposes.

(d)Negative interest income is related to the impact of current interest rates combined with the fees paid on client-driven securities borrowed balances. The negative interest expense related to prime brokerage customer payables is recognized in interest expense and reported within trading liabilities - debt and all other interest-bearing liabilities.

(e)Includes interest earned on brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated balance sheets.

(f)Includes commercial paper.

(g)All other interest-bearing liabilities includes interest expense on brokerage-related customer payables.