Interest income and Interest expense

Interest income and interest expense are recorded in the Consolidated statements of income and classified based on the nature of the underlying asset or liability. Interest income and interest expense includes the current-period interest accruals for financial instruments measured at fair value, except for financial instruments containing embedded derivatives that would be separately accounted for in accordance with U.S. GAAP absent the fair value option election; for those instruments, all changes in fair value, including any interest elements, are reported in principal transactions revenue. For financial instruments that are not measured at fair value, the related interest is included within interest income or interest expense, as applicable.

Details of interest income and interest expense were as follows.



Year ended December 31, (in millions)	2015			2014			2013
Interest Income
Loans	$	33,134		$	32,218		$	33,489
Taxable securities	6,550			7,617			6,916
Non taxable securities^(a)	1,706			1,423			896
Total securities	8,256			9,040			7,812
Trading assets	6,621			7,312			8,099
Federal funds sold and securities purchased under resale agreements	1,592			1,642			1,940
Securities borrowed^(b)	(532		)	(501		)	(127		)
Deposits with banks	1,250			1,157			918
Other assets^(c)	652			663			538
Total interest income	$	50,973		$	51,531		$	52,669
Interest expense
Interest bearing deposits	$	1,252		$	1,633		$	2,067
Federal funds purchased and securities loaned or sold under repurchase agreements	609			604			582
Commercial paper	110			134			112
Trading liabilities - debt, short-term and other liabilities	622			712			1,104
Long-term debt	4,435			4,409			5,007
Beneficial interest issued by consolidated VIEs	435			405			478
Total interest expense	$	7,463		$	7,897		$	9,350
Net interest income	$	43,510		$	43,634		$	43,319
Provision for credit losses	3,827			3,139			225
Net interest income after provision for credit losses	$	39,683		$	40,495		$	43,094


(a)	Represents securities which are tax exempt for U.S. federal income tax purposes.


(b)	Negative interest income for the years ended December 31, 2015, 2014 and 2013, is a result of increased client-driven demand for certain securities combined with the impact of low interest rates; this is matched book activity and the negative interest expense on the corresponding securities loaned is recognized in interest expense.


(c)	Largely margin loans.


(d)	Includes brokerage customer payables.