Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Asset and Liability Management Derivative Positions

The following table summarizes the asset and liability management derivative positions of the Company at December 31:

	2023						2022
	Notional Value		Fair Value				Notional Value		Fair Value
(Dollars in Millions)			Assets		Liabilities				Assets		Liabilities
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	12,100	$	—	$	16	$	17,400	$	—	$	9
Pay fixed/receive floating swaps	24,139		—		—		5,542		—		—
Cash flow hedges
Interest rate contracts
Receive fixed/pay floating swaps	18,400		—		—		14,300		—		—
Net investment hedges
Foreign exchange forward contracts	854		—		10		778		—		—
Other economic hedges
Interest rate contracts
Futures and forwards
Buy	5,006		29		5		3,546		10		18
Sell	4,501		7		34		7,522		20		38
Options
Purchased	6,085		237		—		11,434		346		—
Written	3,696		14		75		7,849		7		148
Receive fixed/pay floating swaps	7,029		9		3		9,215		—		3
Pay fixed/receive floating swaps	3,801		—		—		9,616		—		—
Foreign exchange forward contracts	734		2		5		962		2		6
Equity contracts	227		2		—		361		—		10
Credit contracts	2,620		1		—		330		—		—
Other (a)	2,136		11		93		1,908		11		190
Total	$	91,328	$	312	$	241	$	90,763	$	396	$	422

(a)Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common and preferred shares of Visa Inc. The Visa swap agreements had a total notional value and fair value of $2.0 billion and $91 million at December 31, 2023, respectively, compared to $1.8 billion and $190 million at December 31, 2022, respectively. In addition, includes short-term underwriting purchase and sale commitments with total notional values of $28 million at December 31, 2023, and $13 million at December 31, 2022

Summary of Customer-Related Derivative Positions

The following table summarizes the customer-related derivative positions of the Company at December 31:

	2023						2022
	Notional Value		Fair Value				Notional Value		Fair Value
(Dollars in Millions)			Assets		Liabilities				Assets		Liabilities
Interest rate contracts
Receive fixed/pay floating swaps	$	363,375	$	791	$	4,395	$	301,690	$	309	$	5,689
Pay fixed/receive floating swaps	330,539		1,817		280		316,133		2,323		206
Other(a)	82,209		17		51		40,261		3		16
Options
Purchased	102,423		1,026		18		103,489		1,794		5
Written	97,690		20		1,087		99,923		6		1,779
Futures
Buy	—		—		—		3,623		—		4
Sell	—		—		—		2,376		8		—
Foreign exchange rate contracts
Forwards, spots and swaps	121,119		2,252		1,942		134,666		3,010		2,548
Options
Purchased	1,532		28		—		954		22		—
Written	1,532		—		28		954		—		22
Commodity contracts
Swaps	2,498		116		110		—		—		—
Options
Purchased	1,936		151		—		—		—		—
Written	1,936		—		151		—		—		—
Credit contracts	13,053		1		6		10,765		1		8
Total	$	1,119,842	$	6,219	$	8,068	$	1,014,834	$	7,476	$	10,277

(a)Primarily represents floating rate interest rate swaps that pay based on differentials between specified interest rate indexes.

Summary of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax) for the years ended December 31:

	Gains (Losses) Recognized in Other Comprehensive Income (Loss)						Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
(Dollars in Millions)	2023		2022		2021		2023		2022		2021
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts	$	(187)	$	(56)	$	94	$	(59)	$	(27)	$	(10)
Net investment hedges
Foreign exchange forward contracts	(11)		42		19		—		—		—
Non-derivative debt instruments	(33)		59		84		—		—		—

Note: The Company does not exclude components from effectiveness testing for cash flow and net investment hedges.

Summary of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss)

The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax) for the years ended December 31:

	Gains (Losses) Recognized in Other Comprehensive Income (Loss)						Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
(Dollars in Millions)	2023		2022		2021		2023		2022		2021
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts	$	(187)	$	(56)	$	94	$	(59)	$	(27)	$	(10)
Net investment hedges
Foreign exchange forward contracts	(11)		42		19		—		—		—
Non-derivative debt instruments	(33)		59		84		—		—		—

Note: The Company does not exclude components from effectiveness testing for cash flow and net investment hedges.

Summary of Effect of Fair Value and Cash Flow Hedge Accounting on Consolidated Statement of Income

The table below shows the effect of fair value and cash flow hedge accounting on the Consolidated Statement of Income for the years ended December 31:

	Interest Income						Interest Expense
(Dollars in Millions)	2023		2022		2021		2023		2022		2021
Total amount of income and expense line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded	$	30,007	$	17,945	$	13,487	$	12,611	$	3,217	$	993
Asset and Liability Management Positions
Fair value hedges
Interest rate contract derivatives	(430)		138		17		(458)		482		232
Hedged items	427		(139)		(19)		461		(486)		(232)
Cash flow hedges
Interest rate contract derivatives	(52)		—		—		28		—		14

Note: The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company reclassified losses of $28 million, $36 million and $53 million into earnings during the years ended December 31, 2023, 2022 and 2021, respectively, as a result of realized cash flows on discontinued cash flow hedges. No amounts were reclassified into earnings on discontinued cash flow hedges because it is probable the original hedged forecasted cash flows will not occur.

Summary of Cumulative Hedging Adjustments and the Carrying Amount of Assets and Liabilities Designated in Fair Value Hedges

The table below shows cumulative hedging adjustments and the carrying amount of assets and liabilities designated in fair value hedges at December 31:

	Carrying Amount of the Hedged Assets and Liabilities				Cumulative Hedging Adjustment (a)
(Dollars in Millions)	2023		2022		2023		2022
Line Item in the Consolidated Balance Sheet
Available-for-sale investment securities(b)	$	11,795	$	4,937	$	(448)	$	(552)
Long-term debt	11,987		17,190		(148)		(142)

(a)The cumulative hedging adjustment related to discontinued hedging relationships on available-for-sale investment securities and long-term debt was $(379) million and $(68) million, respectively, at December 31, 2023, compared with $(392) million and $399 million at December 31, 2022, respectively.

(b)Includes amounts related to available-for-sale investment securities currently designated as the hedged item in a fair value hedge using the portfolio layer method. At December 31, 2023, the amortized cost of the closed portfolios used in these hedging relationships was $15.6 billion, of which $9.1 billion was designated as hedged. At December 31, 2023, the cumulative amount of basis adjustments associated with these hedging relationships was $(335) million.

Summary of Gains (Losses) Recognized in Earnings for Other Economic Hedges and Customer-Related Positions

The table below shows the gains (losses) recognized in earnings for other economic hedges and the customer-related positions for the years ended December 31:

(Dollars in Millions)	Location of Gains (Losses) Recognized in Earnings	2023		2022		2021
Asset and Liability Management Positions
Other economic hedges
Interest rate contracts
Futures and forwards	Mortgage banking revenue	$	71	$	407	$	511
Purchased and written options	Mortgage banking revenue	89		1		527
Swaps	Mortgage banking revenue/Other noninterest income/Interest expense	(19)		(1,010)		(197)
Foreign exchange forward contracts	Other noninterest income	(7)		(1)		1
Equity contracts	Compensation expense	(8)		(8)		7
Other	Other noninterest income	1		(181)		5
Customer-Related Positions
Interest rate contracts
Swaps	Commercial products revenue	185		98		110
Purchased and written options	Commercial products revenue	45		20		(5)
Futures	Commercial products revenue	(1)		30		3
Foreign exchange rate contracts
Forwards, spots and swaps	Commercial products revenue	195		100		93
Purchased and written options	Commercial products revenue	1		1		1
Commodity contracts
Swaps	Commercial products revenue	6		—		—
Credit contracts	Commercial products revenue	1		20		(7)