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Noninterest Revenue and Noninterest Expense (Tables)

12 Months Ended

Dec. 31, 2020

Noninterest Income (Expense) [Abstract]

The following table presents the components of investment banking fees.


Year ended December 31, (in millions)	2020		2019		2018
Underwriting
Equity	$	2,759	$	1,648	$	1,684
Debt	4,362		3,513		3,347
Total underwriting	7,121		5,161		5,031
Advisory	2,365		2,340		2,519
Total investment banking fees	$	9,486	$	7,501	$	7,550

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 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 LOB.


Year ended December 31, (in millions)	2020		2019			2018
Trading revenue by instrument type
Interest rate(a)	$	2,575	$	2,739	(c)	$	1,844	(c)
Credit(b)	2,753		1,628		(c)	1,625		(c)
Foreign exchange	4,253		3,179		(c)	3,222		(c)
Equity	6,171		5,589		(c)	4,822		(c)
Commodity	2,088		1,133		(c)	895		(c)
Total trading revenue	17,840		14,268			12,408
Private equity gains/ (losses)	181		(250)			(349)
Principal transactions	$	18,021	$	14,018		$	12,059

(a)Includes the impact of changes in funding valuation adjustments on derivatives.

(b)Includes the impact of changes in credit valuation adjustments on derivatives, net of the associated hedging activities.

(c)The prior-period amounts have been revised to conform with the current presentation.

Components of lending and deposit-related fees

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


Year ended December 31, (in millions)	2020		2019		2018
Lending-related fees	$	1,271	$	1,184	$	1,117
Deposit-related fees(a)	5,240		5,442		5,260
Total lending- and deposit-related fees	$	6,511	$	6,626	$	6,377

(a)In the first quarter of 2020, the Firm reclassified certain fees from asset management, administration and commissions to lending- and deposit-related fees. Prior-period amounts have been revised to conform with the current presentation.

Components of asset management, administration and commissions

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


Year ended December 31, (in millions)	2020		2019		2018
Asset management fees
Investment management fees(a)	$	11,694	$	10,865	$	10,768
All other asset management fees(b)	338		315		270
Total asset management fees	12,032		11,180		11,038

Total administration fees(c)	2,249		2,197		2,179

Commissions and other fees
Brokerage commissions(d)	2,959		2,439		2,505
All other commissions and fees(e)	937		1,092		1,071
Total commissions and fees	3,896		3,531		3,576
Total asset management, administration and commissions	$	18,177	$	16,908	$	16,793

(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. 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)Predominantly includes fees for custody, securities lending, funds services and securities clearance. These fees are recorded as revenue over the period in which the related service is provided.

(d)Represents commissions earned when 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.

(e)In the first quarter of 2020, the Firm reclassified certain fees from asset management, administration and commissions to lending- and deposit-related fees. Prior-period amounts have been revised to conform with the current presentation.

Schedule of components of card income

The following table presents the components of card income:


Year ended December 31, (in millions)	2020		2019		2018
Interchange and merchant processing income	$	18,563	$	20,370	$	18,808
Reward costs and partner payments(a)	(13,637)		(14,540)		(13,320)		(c)
Other card income(b)	(491)		(754)		(745)
Total card income	$	4,435	$	5,076	$	4,743

(a)In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation.

(b)Predominantly represents the amortization of account origination costs and annual fees, which are deferred and recognized on a straight-line basis over a 12-month period.

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

Components of noninterest expense

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


Year ended December 31, (in millions)	2020		2019		2018
Legal expense/(benefit)	$	1,115	$	239	$	72
FDIC-related expense	717		457		1,239

- 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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