Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments [Table Text Block]

The following tables present the Company’s derivative positions at March 31, 2018 and December 31, 2017. The notional amounts in the tables are presented on a gross basis and have been classified within derivative assets or derivative liabilities based on the estimated fair value of the individual contract at March 31, 2018 and December 31, 2017. Gross positive and gross negative fair value amounts associated with respective notional amounts are presented without consideration of any netting agreements, including collateral arrangements. Net fair value derivative amounts are adjusted on an aggregate basis, where applicable, to take into consideration the effects of legally enforceable master netting agreements, including any cash collateral received or paid, and are recognized in Trading assets and derivative instruments or Trading liabilities and derivative instruments on the Consolidated Balance Sheets. For contracts constituting a combination of options that contain a written option and a purchased option (such as a collar), the notional amount of each option is presented separately, with the purchased notional amount generally being presented as a derivative asset and the written notional amount being presented as a derivative liability. For other contracts that contain a combination of options, the fair value is generally presented as a single value with the purchased notional amount if the combined fair value is positive, and with the written notional amount if the combined fair value is negative.

	March 31, 2018
	Asset Derivatives					Liability Derivatives
(Dollars in millions)	Notional  Amounts 1		Fair Value			Notional  Amounts 1		Fair Value
Derivative instruments designated in cash flow hedging relationships 2
Interest rate contracts hedging floating rate LHFI		$9,250		$2			$2,850		$—
Derivative instruments designated in fair value hedging relationships 3
Interest rate contracts hedging fixed rate debt	4,250		1			2,605		—
Interest rate contracts hedging brokered time deposits	30		—			30		—
Subtotal	4,280		1			2,635		—
Derivative instruments not designated as hedging instruments 4
Interest rate contracts hedging:
Residential MSRs 5	15,504		30			19,420		11
LHFS, IRLCs 6	3,413		13			3,111		10
LHFI	—		—			175		—
Trading activity 7	74,322		708			52,545		870
Foreign exchange rate contracts hedging loans and trading activity	4,054		133			3,676		121
Credit contracts hedging:
LHFI	—		—			585		9
Trading activity 8	1,661		22			1,673		19
Equity contracts hedging trading activity 7	15,050		2,070			21,964		2,372
Other contracts:
IRLCs and other 9	1,624		18			382		18
Commodity derivatives	755		77			748		75
Subtotal	116,383		3,071			104,279		3,505
Total derivative instruments		$129,913		$3,074			$109,764		$3,505
Total gross derivative instruments, before netting				$3,074					$3,505
Less: Legally enforceable master netting agreements			(2,009		)			(2,009		)
Less: Cash collateral received/paid			(408		)			(916		)
Total derivative instruments, after netting				$657					$580

¹ For centrally-cleared derivatives, notional amounts are presented based on the fair value of the related derivative asset or derivative liability after applying variation margin.

² See “Cash Flow Hedges” in this Note for further discussion.

³ See “Fair Value Hedges” in this Note for further discussion.

⁴ See “Economic Hedging and Trading Activities” in this Note for further discussion.

⁵ Amount includes $2.0 billion 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.

⁶ Amount includes $330 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.

⁷ Amounts include $9.7 billion of notional amounts related to interest rate futures and $1.3 billion 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.

⁸ Asset and liability amounts include $5 million and $17 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.

⁹ Includes $49 million notional amount that is based on the 3.2 million of VisaClass B shares, 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 14, “Guarantees” for additional information.

	December 31, 2017
	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 LHFI		$5,850		$2			$8,350		$252
Derivative instruments designated in fair value hedging relationships 2
Interest rate contracts hedging fixed rate debt	1,250		1			4,670		58
Interest rate contracts hedging brokered time deposits	30		—			30		—
Subtotal	1,280		1			4,700		58
Derivative instruments not designated as hedging instruments 3
Interest rate contracts hedging:
Residential MSRs 4	31,895		119			10,126		119
LHFS, IRLCs 5	4,550		9			3,040		6
LHFI	90		2			85		2
Trading activity 6	78,223		1,066			48,143		946
Foreign exchange rate contracts hedging loans and trading activity	3,409		110			3,649		102
Credit contracts hedging:
LHFI	—		—			515		11
Trading activity 7	1,721		15			1,733		12
Equity contracts hedging trading activity 6	13,837		2,499			25,070		2,857
Other contracts:
IRLCs and other 8	1,671		18			346		16
Commodity derivatives	712		63			710		61
Subtotal	136,108		3,901			93,417		4,132
Total derivative instruments		$143,238		$3,904			$106,467		$4,442
Total gross derivative instruments, before netting				$3,904					$4,442
Less: Legally enforceable master netting agreements			(2,731		)			(2,731		)
Less: Cash collateral received/paid			(371		)			(1,303		)
Total derivative instruments, after netting				$802					$408

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 $16.6 billion 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 Amount includes $190 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.

⁶ Amounts include $9.8 billion of notional amounts related to interest rate futures and $1.2 billion 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.

⁷ Asset and liability amounts include $4 million and $11 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.

⁸ Includes $49 million notional amount that is based on the 3.2 million of VisaClass B shares, 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 14, “Guarantees” for additional information.

Netting of Financial Instruments - Derivatives [Table Text Block]

The following tables present total gross derivative instrument assets and liabilities at March 31, 2018 and December 31, 2017, which are adjusted to reflect the effects of legally enforceable master netting agreements and cash collateral received or paid when calculating the net amount reported in the Consolidated Balance Sheets. Also included in the tables are financial instrument collateral related to legally enforceable master netting agreements that represents securities collateral received or pledged and customer cash collateral held at third party custodians. These amounts are not offset on the Consolidated Balance Sheets but are shown as a reduction to total derivative instrument assets and liabilities to derive net derivative assets and liabilities. These amounts are limited to the derivative asset/liability balance, and accordingly, do not include excess collateral received/pledged.

(Dollars in millions)	Gross Amount		Amount Offset		Net Amount Presented in Consolidated Balance Sheets			Held/Pledged Financial Instruments		Net Amount
March 31, 2018
Derivative instrument assets:
Derivatives subject to master netting arrangement or similar arrangement		$2,805		$2,279		$526			$18		$508
Derivatives not subject to master netting arrangement or similar arrangement	17		—		17			—		17
Exchange traded derivatives	252		138		114			—		114
Total derivative instrument assets		$3,074		$2,417		$657	1		$18		$639
Derivative instrument liabilities:
Derivatives subject to master netting arrangement or similar arrangement		$3,253		$2,787		$466			$34		$432
Derivatives not subject to master netting arrangement or similar arrangement	114		—		114			—		114
Exchange traded derivatives	138		138		—			—		—
Total derivative instrument liabilities		$3,505		$2,925		$580	2		$34		$546
December 31, 2017
Derivative instrument assets:
Derivatives subject to master netting arrangement or similar arrangement		$3,491		$2,923		$568			$28		$540
Derivatives not subject to master netting arrangement or similar arrangement	18		—		18			—		18
Exchange traded derivatives	395		179		216			—		216
Total derivative instrument assets		$3,904		$3,102		$802	1		$28		$774
Derivative instrument liabilities:
Derivatives subject to master netting arrangement or similar arrangement		$4,128		$3,855		$273			$27		$246
Derivatives not subject to master netting arrangement or similar arrangement	130		—		130			—		130
Exchange traded derivatives	184		179		5			—		5
Total derivative instrument liabilities		$4,442		$4,034		$408	2		$27		$381

¹ At March 31, 2018, $657 million, net of $408 million offsetting cash collateral, is recognized in Trading assets and derivative instruments within the Company's Consolidated Balance Sheets. At December 31, 2017, $802 million, net of $371 million offsetting cash collateral, is recognized in Trading assets and derivative instruments within the Company's Consolidated Balance Sheets.

² At March 31, 2018, $580 million, net of $916 million offsetting cash collateral, is recognized in Trading liabilities and derivative instruments within the Company's Consolidated Balance Sheets. At December 31, 2017, $408 million, net of $1.3 billion offsetting cash collateral, is recognized in Trading liabilities and derivative instruments within the Company's Consolidated Balance Sheets.

Derivative Instruments, Gain (Loss) [Table Text Block]

Pursuant to the adoption of ASU 2017-12, the following table presents gains and losses on derivatives in fair value and cash flow hedging relationships by contract type and by income statement line item for the three months ended March 31, 2018. For the three months ended March 31, 2017 the table presented below remains unchanged. The tables do not disclose the financial impact of the activities that these derivative instruments are intended to hedge.

	Net Interest Income
(Dollars in millions)	Interest and fees on LHFI				Interest on Long-term Debt				Interest on Deposits			Total
Three Months Ended March 31, 2018
Interest income/(expense), including the effects of fair value and cash flow hedges		$1,398				($74	)			($131	)		$1,193
Gain/(loss) on fair value hedging relationships:
Interest rate contracts:
Amounts related to interest settlements on derivatives		$—				$3				$—			$3
Recognized on derivatives	—				(72		)		—			(72		)
Recognized on hedged items	—				69			1	—			69
Net income/(expense) recognized on fair value hedges		$—				$—				$—			$—
Loss on cash flow hedging relationships:
Interest rate contracts:
Amount of pre-tax loss reclassified from AOCI into income		($5	)	2		$—				$—			($5	)
Net expense recognized on cash flow hedges		($5	)			$—				$—			($5	)

¹ Includes $2 million of amortization expense from de-designated fair value hedging relationships.

² During the three months ended March 31, 2018, the Company also reclassified $4 million of pre-tax gains from AOCI into Net interest income relating to hedging relationships that have been terminated and are reclassified into earnings consistent with the pattern of net cash flows expected to be recognized.

	Three Months Ended March 31, 2017
(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		($11	)		$13		$2
Interest rate contracts hedging brokered time deposits 1	—			—		—
Total		($11	)		$13		$2

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

	Three Months Ended March 31, 2017
(Dollars in millions)	Amount of Pre-tax Loss 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 LHFI 1		($25	)		$23	Interest and fees on loans held for investment

¹ During the three months endedMarch 31, 2017, the Company also reclassified $18 million of pre-tax gains from AOCI into Net interest income relating to hedging relationships that have been terminated and are reclassified into earnings consistent with the pattern of net cash flows expected to be recognized.

Hedged Items in Fair Value Hedging Relationships [Table Text Block]

Pursuant to the adoption of ASU 2017-12, the following table presents the carrying amount of hedged liabilities on the Consolidated Balance Sheets in fair value hedging relationships and the associated cumulative basis adjustment related to the application of hedge accounting:

			Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Liabilities
(Dollars in millions)	Carrying Amount of Hedged Liabilities		Hedged Items Currently Designated			Hedged Items No Longer Designated
March 31, 2018
Long-term debt		$5,658		($148	)		($41	)
Interest-bearing deposits:
Brokered time deposits	29		—			—

Derivative Instruments not Designated as Hedging Instruments, Gain (Loss) [Table Text Block]

The impacts of derivative instruments used for economic hedging or trading purposes on the Consolidated Statements of Income are presented in the following table:

	Classification of (Loss)/Gain Recognized in Income on Derivatives	Amount of (Loss)/Gain Recognized in Income on Derivatives During the Three Months Ended
(Dollars in millions)		March 31, 2018			March 31, 2017
Derivative instruments not designated as hedging instruments:
Interest rate contracts hedging:
Residential MSRs	Mortgage servicing related income		($93	)		($18	)
LHFS, IRLCs	Mortgage production related income	46			(15		)
LHFI	Other noninterest income	2			—
Trading activity	Trading income	9			11
Foreign exchange rate contracts hedging loans and trading activity	Trading income	(2		)	(6		)
Credit contracts hedging:
LHFI	Other noninterest income	1			(1		)
Trading activity	Trading income	6			5
Equity contracts hedging trading activity	Trading income	1			—
Other contracts:
IRLCs and other	Mortgage production related income, Commercial real estate related income	(6		)	48
Commodity derivatives	Trading income	—			1
Total			($36	)		$25