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Interest Income and Interest Expense
 12 Months Ended
Dec. 31, 2019
Interest Income (Expense), Net [Abstract]  
Interest Income and Interest Expense 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.
The following table presents the components of interest income and interest expense:
Year ended December 31,
(in millions)
2019
2018
2017
Interest income
 
 
 
Loans(a)
$
50,375

$
47,620

$
41,008

 Taxable securities
7,962

5,653

5,534

 Non-taxable securities(b)
1,329

1,595

1,848

Total investment securities(a)
9,291

7,248

7,382

Trading assets - debt instruments
10,800

8,703

7,610

Federal funds sold and securities purchased under resale agreements
6,146

3,819

2,327

Securities borrowed(c)
1,574

913

94

Deposits with banks
3,887

5,907

4,238

All other interest-earning assets(c)(d)
1,967

1,890

1,312

Total interest income(c)
$
84,040

$
76,100

$
63,971

Interest expense
 
 
 
Interest bearing deposits
$
8,957

$
5,973

$
2,857

Federal funds purchased and securities loaned or sold under repurchase agreements
4,630

3,066

1,611

Short-term borrowings(e)
1,248

1,144

481

Trading liabilities - debt and all other interest-bearing liabilities(c)(f)
2,585

2,387

1,669

Long-term debt
8,807

7,978

6,753

Beneficial interest issued by consolidated VIEs
568

493

503

Total interest expense(c)
$
26,795

$
21,041

$
13,874

Net interest income
$
57,245

$
55,059

$
50,097

Provision for credit losses
5,585

4,871

5,290

Net interest income after provision for credit losses
$
51,660

$
50,188

$
44,807

(a)
Includes the amortization/accretion of unearned income (e.g., purchase premiums/discounts, net deferred fees/costs, etc.).
(b)
Represents securities that are tax-exempt for U.S. federal income tax purposes.
(c)
In the second quarter of 2019, the Firm implemented certain presentation changes that impacted interest income and interest expense, but had no effect on net interest income. These changes were made to align the accounting treatment between the balance sheet and the related interest income or expense, primarily by offsetting interest income and expense for certain prime brokerage-related held-for-investment customer receivables and payables that are currently presented as a single margin account on the balance sheet. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.
(d)
Includes interest earned on prime brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated balance sheets.
(e)
Includes commercial paper.
(f)
Other interest-bearing liabilities includes interest expense on prime brokerage-related customer payables.

Interest income and interest expense includes the current-period interest accruals for financial instruments measured at fair value, except for derivatives and 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. Refer to Notes 12, 10, 11 and 20, for further information on accounting for interest income and interest expense related to loans, investment securities, securities financing activities (i.e., securities purchased or sold under resale or repurchase agreements; securities borrowed; and securities loaned) and long-term debt, respectively.