Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Asset and Liability Management Derivative Positions of Company

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

	June 30, 2022						December 31, 2021
	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	$	17,400	$	—	$	—	$	12,350	$	—	$	—
Pay fixed/receive floating swaps		3,820		—		—		16,650		—		—
Cash flow hedges
Interest rate contracts
Receive fixed/pay floating swaps		8,300		—		—		—		—		—
Net investment hedges
Foreign exchange forward contracts		805		6		1		793		—		4
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		11,040		30		63		9,322		10		16
Sell		9,811		34		31		29,348		25		27
Options
Purchased		7,480		260		—		18,570		256		—
Written		7,208		20		93		9,662		52		231
Receive fixed/pay floating swaps		11,420		—		—		9,653		—		—
Pay fixed/receive floating swaps		12,481		—		—		7,033		—		—
Foreign exchange forward contracts		852		5		2		735		2		6
Equity contracts		186		4		—		209		5		—
Other (a)		2,344		2		81		1,792		—		125
Total	$	93,147	$	361	$	271	$	116,117	$	350	$	409

(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 $1.8 billion and $79 million at June 30, 2022, respectively, compared to $1.8 billion and $125 million at December 31, 2021, respectively. In addition, includes short-term underwriting purchase and sale commitments with total notional values of $565 million at June 30, 2022, and $8 million at December 31, 2021.

Summary of Customer-Related Derivative Positions of Company

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

	June 30, 2022						December 31, 2021
	Notional Value		Fair Value				Notional Value		Fair Value
(Dollars in Millions)			Assets		Liabilities				Assets		Liabilities
Interest rate contracts
Receive fixed/pay floating swaps	$	204,454	$	458	$	3,125	$	178,701	$	2,007	$	438
Pay fixed/receive floating swaps		193,869		1,308		214		174,176		134		670
Other (a)		19,451		1		3		16,267		1		2
Options
Purchased		90,183		993		5		89,679		194		36
Written		87,585		6		979		85,211		36		176
Futures
Buy		475		—		—		3,607		—		—
Sell		4,928		—		—		3,941		—		—
Foreign exchange rate contracts
Forwards, spots and swaps		95,611		2,222		2,239		89,321		1,145		1,143
Options
Purchased		861		39		—		805		19		—
Written		861		—		39		805		—		19
Credit contracts		9,152		1		6		9,331		1		5
Total	$	707,430	$	5,028	$	6,610	$	651,844	$	3,537	$	2,489

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

Summary of Effective Portion of Gains (Losses) Recognized in Other Comprehensive Income (Loss) and Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings

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):

	Three Months Ended June 30										Six Months Ended June 30
	Gains (Losses) Recognized in Other Comprehensive Income (Loss)					Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings					Gains (Losses) Recognized in Other Comprehensive Income (Loss)					Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
(Dollars in Millions)	2022		2021			2022			2021		2022		2021			2022			2021
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts	$	73	$	11		$	(8	)	$	6	$	73	$	85		$	(16	)	$	3
Net investment hedges
Foreign exchange forward contracts		27		(8	)		—			—		26		(1	)		—			—
Non-derivative debt instruments		63		(14	)		—			—		83		34			—			—

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 Included in Interest Expense 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:

	Three Months Ended June 30												Six Months Ended June 30
	Interest Income						Interest Expense						Interest Income						Interest Expense
(Dollars in Millions)	2022			2021			2022			2021			2022			2021			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	$	3,825		$	3,382		$	390		$	245		$	7,243		$	6,723		$	635		$	523
Asset and Liability Management Positions
Fair value hedges
Interest rate contract derivatives		(186	)		(30	)		(38	)		18			331			(31	)		34			73
Hedged items		187			29			36			(17	)		(331	)		30			(35	)		(72	)
Cash flow hedges
Interest rate contract derivatives		—			—			10			(8	)		—			—			21			(4	)

Note: The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company reclassified losses of $10 million and $21 million into earnings during the three and six months ended June 30, 2022, respectively, as a result of realized cash flows on discontinued cash flow hedges, compared with $12 million and $27 million during the three and six months ended June 30, 2021, respectively. 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:

	Carrying Amount of the Hedged Assets and Liabilities				Cumulative Hedging Adjustment (a)
At December 31 (Dollars in Millions)	June 30, 2022		December 31, 2021		June 30, 2022			December 31, 2021
Line Item in the Consolidated Balance Sheet
Available-for-sale investment securities	$	3,124	$	16,445	$	(716	)	$	(26	)
Long-term debt		17,724		12,278		378			585

(a) The cumulative hedging adjustment related to discontinued hedging relationships on available-for-sale investment securities and long-term debt was $(365) million and $468 million, respectively, at June 30, 2022, compared with $(6) million and $640 million at December 31, 2021, respectively.

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:

	Location of Gains (Losses) Recognized in Earnings		Three Months Ended June 30						Six Months Ended June 30
(Dollars in Millions)			2022			2021			2022			2021
Asset and Liability Management Positions
Other economic hedges
Interest rate contracts
Futures and forwards		Mortgage banking revenue	$	74		$	(99	)	$	297		$	331
Purchased and written options		Mortgage banking revenue		6			253			(41	)		265
Swaps		Mortgage banking revenue		(247	)		193			(451	)		(197	)
Foreign exchange forward contracts		Other noninterest income		4			(7	)		1			(10	)
Equity contracts		Compensation expense		(1	)		1			(3	)		5
Other		Other noninterest income		1			1			—			1
Customer-Related Positions
Interest rate contracts
Swaps		Commercial products revenue		30			25			47			52
Purchased and written options		Commercial products revenue		—			4			4			(3	)
Futures		Commercial products revenue		8			—			24			—
Foreign exchange rate contracts
Forwards, spots and swaps		Commercial products revenue		20			27			35			46
Purchased and written options		Commercial products revenue		1			—			1			—
Credit contracts		Commercial products revenue		17			(4	)		22			(2	)