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Noninterest Revenue and Noninterest Expense (Tables)

9 Months Ended

Sep. 30, 2019

Noninterest Income (Expense) [Abstract]

The following table presents the components of investment banking fees.



	Three months ended September 30,				Nine months ended September 30,
(in millions)	2019		2018		2019		2018
Underwriting
Equity	$	517	$	417	$	1,293	$	1,342
Debt	955		836		2,720		2,596
Total underwriting	1,472		1,253		4,013		3,938
Advisory	495		579		1,645		1,798
Total investment banking fees	$	1,967	$	1,832	$	5,658	$	5,736

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 in CIB and cash deployment activities in Treasury and CIO. Refer to Note 6 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.



	Three months ended September 30,					Nine months ended September 30,
(in millions)	2019		2018			2019			2018
Trading revenue by instrument type
Interest rate	$	835	$	338		$	1,901		$	1,784
Credit	328		202			1,375			1,230
Foreign exchange	892		937			2,509			2,706
Equity	1,003		1,363			4,530			4,376
Commodity	372		277			982			800
Total trading revenue	3,430		3,117			11,297			10,896
Private equity gains/(losses)^(a)	19		(153		)	(58		)	(198		)
Principal transactions	$	3,449	$	2,964		$	11,239		$	10,698


(a)	The third quarter of 2018 included markdowns of approximately $220 million on certain private equity investments in Corporate, with $170 million recorded within principal transactions revenue and $50 million in other income.

Components of lending and deposit-related fees

The following table presents the components of lending- and deposit-related fees.



	Three months ended September 30,				Nine months ended September 30,
(in millions)	2019		2018		2019		2018
Lending-related fees	$	286	$	284	$	861	$	838
Deposit-related fees	1,340		1,258		3,782		3,676
Total lending- and deposit-related fees	$	1,626	$	1,542	$	4,643	$	4,514

Components of asset management, administration and commissions

The following table presents the components of Firmwide asset management, administration and commissions.



	Three months ended September 30,				Nine months ended September 30,
(in millions)	2019		2018		2019		2018
Asset management fees
Investment management fees^(a)	$	2,738	$	2,716	$	8,013	$	8,081
All other asset management fees^(b)	82		79		229		211
Total asset management fees	2,820		2,795		8,242		8,292

Total administration fees^(c)	567		533		1,646		1,651

Commissions and other fees
Brokerage commissions	634		604		1,861		1,887
All other commissions and fees	330		378		1,069		1,093
Total commissions and fees	964		982		2,930		2,980
Total asset management, administration and commissions	$	4,351	$	4,310	$	12,818	$	12,923


(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)	Represents fees for services that are ancillary to investment management services, such as commissions earned on the sales or distribution of mutual funds to clients.

(c)

Predominantly includes fees for custody, securities lending, funds services and securities clearance.

Schedule of components of card income

The following table presents the components of card income:



	Three months ended September 30,						Nine months ended September 30,
(in millions)	2019			2018			2019			2018
Interchange and merchant processing income	$	5,127		$	4,781		$	15,032		$	13,863
Rewards costs and partner payments^(a)	(3,669		)	(3,276		)	(10,515		)	(9,687		)
Other card income^(b)	(175		)	(177		)	(594		)	(553		)
Total card income	$	1,283		$	1,328		$	3,923		$	3,623


(a)	The three and nine months ended September 30, 2018, included an adjustment to the credit card rewards liability of approximately $330 million.

(b)

Predominantly represents annual fees and new account origination costs, which are deferred and recognized on a straight-line basis over a 12-month period.

Components of noninterest expense

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



	Three months ended September 30,				Nine months ended September 30,
(in millions)	2019		2018		2019			2018
Legal expense/(benefit)	$	10	$	20	$	(2	)	$	90
FDIC-related expense	114		349		378			1,100

- 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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