Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Positions

	March 31, 2016
	Asset Derivatives					Liability Derivatives
(Dollars in millions)	Notional Amounts		Fair Value			Notional Amounts		Fair Value
Derivative instruments designated in cash flow hedging relationships 1
Interest rate contracts hedging floating rate loans		$18,250		$374			$—		$—
Derivative instruments designated in fair value hedging relationships 2
Interest rate contracts hedging fixed rate debt	700		9			2,600		2
Interest rate contracts hedging brokered CDs	29		—			—		—
Total	729		9			2,600		2
Derivative instruments not designated as hedging instruments 3
Interest rate contracts hedging:
MSRs	23,069		602			7,603		373
LHFS, IRLCs 4	2,540		8			4,290		25
LHFI	5		1			50		4
Trading activity 5	69,677		2,714			66,550		2,479
Foreign exchange rate contracts hedging trading activity	4,323		131			4,571		127
Credit contracts hedging:
Loans	10		—			445		4
Trading activity 6	2,248		31			2,437		28
Equity contracts hedging trading activity 5	19,486		1,809			28,680		2,256
Other contracts:
IRLCs and other 7	3,011		37			126		5
Commodities	593		110			587		108
Total	124,962		5,443			115,339		5,409
Total derivative instruments		$143,941		$5,826			$117,939		$5,411
Total gross derivative instruments, before netting				$5,826					$5,411
Less: Legally enforceable master netting agreements			(3,484		)			(3,484		)
Less: Cash collateral received/paid			(607		)			(1,273		)
Total derivative instruments, after netting				$1,735					$654

¹ See “Cash Flow Hedges” in this Note for further discussion.

² See “Fair Value Hedges” in this Note for further discussion.

³ See “Economic Hedging and Trading Activities” in this Note for further discussion.

⁴ Amount includes $546 million of notional amounts related to interest rate futures. These futures contracts settle in cash daily, one day in arrears. The derivative asset or liability associated with the one day lag is included in the fair value column of this table.

⁵ Amounts include $13.3 billion of notional amounts related to interest rate futures and $91 million of notional amounts related to equity futures. These futures contracts settle in cash daily, one day in arrears. The derivative asset or liability associated with the one day lag is included in the fair value column of this table. Amounts also include notional amounts related to interest rate swaps hedging fixed rate debt.

⁶ Asset and liability amounts include $6 million and $10 million, respectively, of notional amounts from purchased and written credit risk participation agreements, whose notional is calculated as the notional of the derivative participated adjusted by the relevant RWA conversion factor.

⁷ Includes $49 million notional amount that is based on the number of VisaClass B shares, 3.2 million, the conversion ratio from Class B shares to Class A shares, and the Class A share price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Class B shares in the second quarter of 2009. See Note 12, “Guarantees” for additional information.

	December 31, 2015
	Asset Derivatives					Liability Derivatives
(Dollars in millions)	Notional Amounts		Fair Value			Notional Amounts		Fair Value
Derivative instruments designated in cash flow hedging relationships 1
Interest rate contracts hedging floating rate loans		$14,500		$130			$2,900		$11
Derivative instruments designated in fair value hedging relationships 2
Interest rate contracts hedging fixed rate debt	1,700		14			600		—
Interest rate contracts hedging brokered CDs	30		—			—		—
Total	1,730		14			600		—
Derivative instruments not designated as hedging instruments 3
Interest rate contracts hedging:
MSRs	7,782		198			16,882		98
LHFS, IRLCs 4	4,309		10			2,520		5
LHFI	15		—			40		1
Trading activity 5	67,426		1,983			68,125		1,796
Foreign exchange rate contracts hedging trading activity	3,648		127			3,227		122
Credit contracts hedging:
Loans	—		—			175		2
Trading activity 6	2,232		57			2,385		54
Equity contracts hedging trading activity 5	19,138		1,812			27,154		2,222
Other contracts:
IRLCs and other 7	2,024		21			299		6
Commodities	453		113			448		111
Total	107,027		4,321			121,255		4,417
Total derivative instruments		$123,257		$4,465			$124,755		$4,428
Total gross derivative instruments, before netting				$4,465					$4,428
Less: Legally enforceable master netting agreements			(2,916		)			(2,916		)
Less: Cash collateral received/paid			(397		)			(1,048		)
Total derivative instruments, after netting				$1,152					$464

¹ See “Cash Flow Hedges” in this Note for further discussion.

² See “Fair Value Hedges” in this Note for further discussion.

³ See “Economic Hedging and Trading Activities” in this Note for further discussion.

⁴ Amount includes $518 million of notional amounts related to interest rate futures. These futures contracts settle in cash daily, one day in arrears. The derivative asset or liability associated with the one day lag is included in the fair value column of this table.

⁵ Amounts include $12.6 billion of notional amounts related to interest rate futures and $329 million of notional amounts related to equity futures. These futures contracts settle in cash daily, one day in arrears. The derivative asset or liability associated with the one day lag is included in the fair value column of this table. Amounts also include notional amounts related to interest rate swaps hedging fixed rate debt.

⁶ Asset and liability amounts include $6 million and $9 million, respectively, of notional amounts from purchased and written interest rate swap risk participation agreements, whose notional is calculated as the notional of the interest rate swap participated adjusted by the relevant RWA conversion factor.

⁷ Includes $49 million notional amount that is based on the number of VisaClass B shares, 3.2 million, the conversion ratio from Class B shares to Class A shares, and the Class A share price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Class B shares in the second quarter of 2009. See Note 12, “Guarantees” for additional information.

^[1]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

	Three Months Ended March 31, 2016
(Dollars in millions)	Amount of  Pre-tax Gain Recognized in OCI on Derivatives (Effective Portion)		Amount of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion)		Classification of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion)
Derivative instruments in cash flow hedging relationships:
Interest rate contracts hedging floating rate loans 1		$306		$38	Interest and fees on loans

¹ During the three months endedMarch 31, 2016, the Company also reclassified $29 million of pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been terminated or de-designated and are reclassified into earnings consistent with the pattern of net cash flows expected to be recognized.

	Three Months Ended March 31, 2016
(Dollars in millions)	Amount of Loss on Derivatives Recognized in Income			Amount of Gain on Related Hedged Items Recognized in Income		Amount of Gain Recognized in Income on Hedges (Ineffective Portion)
Derivative instruments in fair value hedging relationships:
Interest rate contracts hedging fixed rate debt 1		($2	)		$3		$1
Interest rate contracts hedging brokered CDs 1	—			—		—
Total		($2	)		$3		$1

¹ Amounts are recognized in trading income in the Consolidated Statements of Income.

(Dollars in millions)	Classification of Gain/(Loss) Recognized in Income on Derivatives	Amount of Gain/(Loss) Recognized in Income on Derivatives During the Three Months Ended March 31, 2016
Derivative instruments not designated as hedging instruments:
Interest rate contracts hedging:
MSRs	Mortgage servicing related income		$169
LHFS, IRLCs	Mortgage production related income	(62		)
LHFI	Other noninterest income	(2		)
Trading activity	Trading income	15
Foreign exchange rate contracts hedging trading activity	Trading income	(18		)
Credit contracts hedging:
Loans	Other noninterest income	(1		)
Trading activity	Trading income	5
Equity contracts hedging trading activity	Trading income	2
Other contracts:
IRLCs	Mortgage production related income	45
Commodities	Trading income	1
Total			$154

	Three Months Ended March 31, 2015
(Dollars in millions)	Amount of  Pre-tax Gain Recognized in OCI on Derivatives (Effective Portion)		Amount of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion)		Classification of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion)
Derivative instruments in cash flow hedging relationships:
Interest rate contracts hedging floating rate loans 1		$125		$35	Interest and fees on loans

¹ During the three months endedMarch 31, 2015, the Company also reclassified $19 million of pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been terminated or de-designated and are reclassified into earnings consistent with the pattern of net cash flows expected to be recognized.

	Three Months Ended March 31, 2015
(Dollars in millions)	Amount of Gain on Derivatives Recognized in Income		Amount of Loss on Related Hedged Items Recognized in Income			Amount of Gain/(Loss) Recognized in Income on Hedges (Ineffective Portion)
Derivative instruments in fair value hedging relationships:
Interest rate contracts hedging fixed rate debt 1		$14		($14	)		$—
Interest rate contracts hedging brokered CDs 1	—		—			—
Total		$14		($14	)		$—

¹ Amounts are recognized in trading income in the Consolidated Statements of Income.

(Dollars in millions)	Classification of Gain/(Loss) Recognized in Income on Derivatives	Amount of Gain/(Loss) Recognized in Income on Derivatives During the Three Months Ended March 31, 2015
Derivative instruments not designated as hedging instruments:
Interest rate contracts hedging:
MSRs	Mortgage servicing related income		$88
LHFS, IRLCs	Mortgage production related income	(43		)
Trading activity	Trading income	15
Foreign exchange rate contracts hedging trading activity	Trading income	56
Credit contracts hedging trading activity	Trading income	6
Equity contracts hedging trading activity	Trading income	3
Other contracts - IRLCs	Mortgage production related income	81
Total			$206

^[2]

Netting of financial instruments - derivatives [Table Text Block]

(Dollars in millions)	Gross Amount		Amount Offset		Net Amount Presented in Consolidated Balance Sheets			Held/Pledged Financial Instruments		Net Amount
March 31, 2016
Derivative instrument assets:
Derivatives subject to master netting arrangement or similar arrangement		$5,506		$3,943		$1,563			$103		$1,460
Derivatives not subject to master netting arrangement or similar arrangement	36		—		36			—		36
Exchange traded derivatives	284		148		136			—		136
Total derivative instrument assets		$5,826		$4,091		$1,735	1		$103		$1,632
Derivative instrument liabilities:
Derivatives subject to master netting arrangement or similar arrangement		$5,169		$4,609		$560			$26		$534
Derivatives not subject to master netting arrangement or similar arrangement	93		—		93			—		93
Exchange traded derivatives	149		148		1			—		1
Total derivative instrument liabilities		$5,411		$4,757		$654	2		$26		$628
December 31, 2015
Derivative instrument assets:
Derivatives subject to master netting arrangement or similar arrangement		$4,184		$3,156		$1,028			$66		$962
Derivatives not subject to master netting arrangement or similar arrangement	21		—		21			—		21
Exchange traded derivatives	260		157		103			—		103
Total derivative instrument assets		$4,465		$3,313		$1,152	1		$66		$1,086
Derivative instrument liabilities:
Derivatives subject to master netting arrangement or similar arrangement		$4,162		$3,807		$355			$19		$336
Derivatives not subject to master netting arrangement or similar arrangement	105		—		105			—		105
Exchange traded derivatives	161		157		4			—		4
Total derivative instrument liabilities		$4,428		$3,964		$464	2		$19		$445

¹ At March 31, 2016, $1.7 billion, net of $607 million offsetting cash collateral, is recognized in trading assets and derivative instruments within the Company's Consolidated Balance Sheets. At December 31, 2015, $1.2 billion, net of $397 million offsetting cash collateral, is recognized in trading assets and derivative instruments within the Company's Consolidated Balance Sheets.

² At March 31, 2016, $654 million, net of $1.3 billion offsetting cash collateral, is recognized in trading liabilities and derivative instruments within the Company's Consolidated Balance Sheets. At December 31, 2015, $464 million, net of $1.0 billion offsetting cash collateral, is recognized in trading liabilities and derivative instruments within the Company's Consolidated Balance Sheets.

[1] Amounts are recognized in trading income in the Consolidated Statements of Income.

[2] During the three months ended March 31, 2015, the Company also reclassified $19 million of pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been terminated or de-designated and are reclassified into earnings consistent with the pattern of net cash flows expected to be recognized.