Accumulated Other Comprehensive Income/(Loss)

9 Months Ended

Sep. 30, 2024

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income/(Loss)

Accumulated other comprehensive income/(loss)

AOCI includes the after-tax change in unrealized gains and losses on investment securities, foreign currency translation adjustments (including the impact of related derivatives), fair value changes of excluded components on fair value hedges, cash flow hedging activities, net gain/(loss) related to the Firm’s defined benefit pension and OPEB plans, and fair value option-elected liabilities arising from changes in the Firm’s own credit risk (DVA).

As of or for the three months ended September 30, 2024 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)
Balance at July 1, 2024		$	(3,494)			$	(1,576)	$	(147)		$	(4,843)		$	(1,055)		$	(223)		$	(11,338)
Net change		2,297				389		(20)			2,265			(28)			(349)			4,554
Balance at September 30, 2024		$	(1,197)	(a)		$	(1,187)	$	(167)		$	(2,578)		$	(1,083)		$	(572)		$	(6,784)
As of or for the three months ended September 30, 2023 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)
Balance at July 1, 2023		$	(6,155)			$	(1,278)	$	(43)		$	(5,355)		$	(1,512)		$	53		$	(14,290)
Net change		(1,950)				(340)		(5)			(583)			(21)			85			(2,814)
Balance at September 30, 2023		$	(8,105)	(a)		$	(1,618)	$	(48)		$	(5,938)		$	(1,533)		$	138		$	(17,104)
As of or for the nine months ended September 30, 2024 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)
Balance at January 1, 2024		$	(3,743)			$	(1,216)	$	(134)		$	(3,932)		$	(1,078)		$	(340)		$	(10,443)
Net change		2,546				29		(33)			1,354			(5)			(232)			3,659
Balance at September 30, 2024		$	(1,197)	(a)		$	(1,187)	$	(167)		$	(2,578)		$	(1,083)		$	(572)		$	(6,784)
As of or for the nine months ended September 30, 2023 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)
Balance at January 1, 2023		$	(9,124)			$	(1,545)	$	(33)		$	(5,656)		$	(1,451)		$	468		$	(17,341)
Net change		1,019				(73)		(15)			(282)			(82)			(330)			237
Balance at September 30, 2023		$	(8,105)	(a)		$	(1,618)	$	(48)		$	(5,938)		$	(1,533)		$	138		$	(17,104)

(a)As of September 30, 2024 and 2023 included after-tax net unamortized unrealized gains/(losses) of $(661) million and $(1.0) billion related to AFS securities that have been transferred to HTM, respectively. As of September 30, 2023 included after-tax net unamortized unrealized gains/(losses) of $(29) million related to HTM securities that have been transferred to AFS as permitted by the new hedge accounting guidance adopted on January 1, 2023. Refer to Note 9 for further information.

The following table presents the pre-tax and after-tax changes in the components of OCI.

	2024						2023
Three months ended September 30, (in millions)	Pre-tax		Tax effect		After-tax		Pre-tax		Tax effect		After-tax
Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period	$	3,014	$	(730)	$	2,284	$	(3,234)	$	775	$	(2,459)
Reclassification adjustment for realized (gains)/losses included in net income(a)	16		(3)		13		669		(160)		509
Net change	3,030		(733)		2,297		(2,565)		615		(1,950)
Translation adjustments(b):
Translation	2,411		(109)		2,302		(1,608)		18		(1,590)
Hedges	(2,523)		610		(1,913)		1,647		(397)		1,250
Net change	(112)		501		389		39		(379)		(340)
Fair value hedges, net change(c)	(27)		7		(20)		(7)		2		(5)
Cash flow hedges:
Net unrealized gains/(losses) arising during the period	2,313		(559)		1,754		(1,209)		290		(919)
Reclassification adjustment for realized (gains)/losses included in net income(d)	673		(162)		511		443		(107)		336
Net change	2,986		(721)		2,265		(766)		183		(583)
Defined benefit pension and OPEB plans, net change	(36)		8		(28)		(26)		5		(21)
DVA on fair value option elected liabilities, net change	(460)		111		(349)		111		(26)		85
Total other comprehensive income/(loss)	$	5,381	$	(827)	$	4,554	$	(3,214)	$	400	$	(2,814)
	2024						2023
Nine months ended September 30, (in millions)	Pre-tax		Tax effect		After-tax		Pre-tax		Tax effect		After-tax
Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period	$	2,428	$	(587)	$	1,841	$	(1,097)	$	264	$	(833)
Reclassification adjustment for realized (gains)/losses included in net income(a)	929		(224)		705		2,437		(585)		1,852
Net change	3,357		(811)		2,546		1,340		(321)		1,019
Translation adjustments(b):
Translation	117		9		126		(509)		(13)		(522)
Hedges	(129)		32		(97)		596		(147)		449
Net change	(12)		41		29		87		(160)		(73)
Fair value hedges, net change(c)	(43)		10		(33)		(20)		5		(15)
Cash flow hedges:
Net unrealized gains/(losses) arising during the period	(132)		32		(100)		(1,761)		422		(1,339)
Reclassification adjustment for realized (gains)/losses included in net income(d)	1,917		(463)		1,454		1,391		(334)		1,057
Net change	1,785		(431)		1,354		(370)		88		(282)
Defined benefit pension and OPEB plans, net change	(2)		(3)		(5)		(105)		23		(82)
DVA on fair value option elected liabilities, net change	(302)		70		(232)		(436)		106		(330)
Total other comprehensive income/(loss)	$	4,783	$	(1,124)	$	3,659	$	496	$	(259)	$	237

    

(a)The pre-tax amount is reported in Investment securities gains/(losses) in the Consolidated statements of income.

(b)Reclassifications of pre-tax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of income. During the three months ended September 30, 2024, the Firm reclassified a net pre-tax loss of $(1) million to other income/expense, of which $36 million related to net investment hedges. The net amounts reclassified during the nine months ended September 30, 2024 and three months ended September 30, 2023 were not material. During the nine months ended September 30, 2023, the Firm reclassified a net pre-tax loss of $(4) million to other income/expense predominantly related to the acquisition of CIFM of which $(38) million related to net investment hedges.

(c)Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial cost of cross-currency basis spreads is recognized in earnings as part of the accrual of interest on the cross-currency swaps.

(d)The pre-tax amounts are primarily recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income.