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Noninterest Revenue and Noninterest Expense (Tables)

12 Months Ended

Dec. 31, 2018

Noninterest Income (Expense) [Abstract]



Year ended December 31, (in millions)	2018		2017		2016
Underwriting
Equity	$	1,684	$	1,466	$	1,200
Debt	3,347		3,802		3,277
Total underwriting	5,031		5,268		4,477
Advisory	2,519		2,144		2,095
Total investment banking fees	$	7,550	$	7,412	$	6,572

Principal transactions revenue

The following table presents all realized and unrealized gains and losses recorded in principal transactions revenue. This table excludes interest income and interest expense on trading assets and liabilities, which are an integral part of the overall performance of the Firm’s client-driven market-making activities. Refer to Note 7 for further information on interest income and interest expense. Trading revenue is presented primarily by instrument type. The Firm’s client-driven market-making businesses generally utilize a variety of instrument types in connection with their market-making and related risk-management activities; accordingly, the trading revenue presented in the table below is not representative of the total revenue of any individual line of business.



Year ended December 31, (in millions)	2018			2017		2016
Trading revenue by instrument type
Interest rate	$	1,961		$	2,479	$	2,325
Credit	1,395			1,329		2,096
Foreign exchange	3,222			2,746		2,827
Equity	4,924			3,873		2,994
Commodity	906			661		1,067
Total trading revenue	12,408			11,088		11,309
Private equity gains	(349		)	259		257
Principal transactions	$	12,059		$	11,347	$	11,566

Components of lending and deposit-related fees



Year ended December 31, (in millions)	2018		2017		2016
Lending-related fees	$	1,117	$	1,110	$	1,114
Deposit-related fees	4,935		4,823		4,660
Total lending- and deposit-related fees	$	6,052	$	5,933	$	5,774

Components of asset management, administration and commissions



Year ended December 31, (in millions)	2018		2017		2016
Asset management fees
Investment management fees^(a)	$	10,768	$	10,434	$	9,636
All other asset management fees^(b)	270		296		338
Total asset management fees	11,038		10,730		9,974

Total administration fees^(c)	2,179		2,029		1,915

Commissions and other fees
Brokerage commissions^(d)	2,505		2,239		2,151
All other commissions and fees	1,396		1,289		1,324
Total commissions and fees	3,901		3,528		3,475
Total asset management, administration and commissions	$	17,118	$	16,287	$	15,364


(a)	Represents fees earned from managing assets on behalf of the Firm’s clients, including investors in Firm-sponsored funds and owners of separately managed investment accounts.

(b)

The Firm receives other asset management fees for services that are ancillary to investment management services, including commissions earned on sales or distribution of mutual funds to clients. These fees are recorded as revenue at the time the service is rendered or, in the case of certain distribution fees based on the underlying fund’s asset value and/or investor redemption, recorded over time as the investor remains in the fund or upon investor redemption.


(c)	The Firm receives administrative fees predominantly from custody, securities lending, fund services and securities clearance services it provides. These fees are recorded as revenue over the period in which the related service is provided.

(d)

The Firm acts as a broker, by facilitating its clients’ purchases and sales of securities and other financial instruments. Brokerage commissions are collected and recognized as revenue upon occurrence of the client transaction. The Firm reports certain costs paid to third-party clearing houses and exchanges net against commission revenue.

Schedule of components of card income

The following table presents the components of card income:



Year ended December 31, (in millions)	2018				2017			2016
Interchange and merchant processing income	$	18,808			$	17,080		$	15,367
Reward costs and partner payments	(13,074		)	^(b)	(10,820		)	(9,480		)
Other card income^(a)	(745		)		(1,827		)	(1,108		)
Total card income	$	4,989			$	4,433		$	4,779


(a)	Predominantly represents annual fees and new account origination costs, which are deferred and recognized on a straight-line basis over a 12-month period and are outside the scope of the revenue recognition guidance, ASC 606, Revenue from Contracts with Customers.

(b)

Includes an adjustment to the credit card rewards liability of approximately $330 million, recorded in the second quarter of 2018.

Schedule of amounts included in other income

Other income on the Firm’s Consolidated statements of income included the following:



Year ended December 31, (in millions)	2018		2017		2016
Operating lease income	$	4,540	$	3,613	$	2,724

Components of noninterest expense

Other expense on the Firm’s Consolidated statements of income included the following:



Year ended December 31, (in millions)	2018		2017			2016
Legal expense/(benefit)	$	72	$	(35	)	$	(317	)
FDIC-related expense	1,239		1,492			1,296

- Definition

Components of asset management, administration and commissions. Combination of: 1) Revenue recognized in the period for (A) performance (incentive) fees based on the investment results achieved for management of certain institutional accounts and hedge funds, (B) schedule-based fees earned for management of mutual funds and closed-end funds, based either on average daily net assets or on a combination of the average daily net assets and gross income, and (C) other investment management and advisory fees. 2) Acting as an agent, a broker-dealer may buy and sell securities on behalf of its customers. In return for such services, the broker-dealer charges a commission. Each time a customer enters into a buy or sell transaction, a commission is earned by the broker-dealer for its selling and administrative efforts. For securities purchased, the commission is recorded as a receivable from customers; for securities sold, it is recorded as reductions in the payable to customers. Commissions earned are usually related to the broker-dealer's customers' trading volume and the dollar amounts of the trades. In general, commissions are for smaller trades of exchange-listed stocks and bonds made by retail customers. 3)Income from services rendered by trust departments or by any consolidated subsidiaries acting in a fiduciary capacity, including fees earned for (A) acting as an agent for fiduciary placement and loans and (B) custody or investment advisory services when such fees are not separately billed to the customer. This item excludes commissions and fees received for the accumulation or disbursement of funds deposited to Individual Retirement or Keogh plan accounts when such are not handled by the reporting entity's trust department. 4) Income from agency and brokerage operations (includes sales of annuities and supplemental contracts); service charges, commissions, and fees from the sale of insurance and related services; and management fees from separate accounts, deferred annuities, and universal life products. 5) Revenues from providing transfer agent services to corporations. Such services include maintaining records of investors and account balances and transactions, canceling and issuing certificates, processing investor mailings and dealing with any associated problems (i.e. lost or stolen certificates). 6) Service revenue earned by a depository institution that holds the account balances of other financial institutions and provides services thereto. Such services include check collection and item processing. 7) Fee and commission revenue earned from sources not otherwise specified in the existing taxonomy, such as ADR fees, fund accounting fees, etc.

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