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Noninterest Revenue and Noninterest Expense (Tables)

12 Months Ended

Dec. 31, 2022

Noninterest Income (Expense) [Abstract]

The following table presents the components of investment banking fees.


Year ended December 31, (in millions)	2022		2021		2020
Underwriting
Equity	$	975	$	3,969	$	2,759
Debt	2,732		4,853		4,362
Total underwriting	3,707		8,822		7,121
Advisory	2,979		4,394		2,365
Total investment banking fees	$	6,686	$	13,216	$	9,486

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 fund 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)	2022			2021		2020
Trading revenue by instrument type
Interest rate(a)	$	3,010		$	1,646	$	2,575
Credit(b)	1,412		(c)	2,691		2,753
Foreign exchange	5,119			2,787		4,253
Equity	8,068			7,773		6,171
Commodity	2,348			1,428		2,088
Total trading revenue	19,957			16,325		17,840
Private equity gains/(losses)	(45)			(21)		181
Principal transactions	$	19,912		$	16,304	$	18,021

(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)Includes net markdowns on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio.

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)	2022		2021		2020
Lending-related fees	$	1,468	$	1,472	$	1,271
Deposit-related fees	5,630		5,560		5,240
Total lending- and deposit-related fees	$	7,098	$	7,032	$	6,511

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)	2022		2021		2020
Asset management fees
Investment management fees(a)	$	13,765	$	14,027	$	11,694
All other asset management fees(b)	331		378		338
Total asset management fees	14,096		14,405		12,032

Total administration fees(c)	2,348		2,554		2,249

Commissions and other fees
Brokerage commissions(d)	2,831		3,046		2,959
All other commissions and fees(e)	1,402		1,024		937
Total commissions and fees	4,233		4,070		3,896
Total asset management, administration and commissions	$	20,677	$	21,029	$	18,177

(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)Includes travel-related and annuity sales commissions, depositary receipt-related service fees, as well as other service fees, which are recognized as revenue when the services are rendered.

Schedule of components of card income

The following table presents the components of card income:


Year ended December 31, (in millions)	2022		2021		2020
Interchange and merchant processing income	$	28,085	$	23,592	$	18,563
Reward costs and partner payments	(22,162)		(17,868)		(13,637)
Other card income(a)	(1,503)		(622)		(491)
Total card income	$	4,420	$	5,102	$	4,435

(a)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.

Components of other income

The following table presents certain components of other income:


Year ended December 31, (in millions)	2022		2021		2020
Operating lease income	$	3,654	$	4,914	$	5,539
Losses on tax-oriented investments(a)	(1,491)		(1,570)		(1,280)
Gain on sale of Visa B shares	914		—		—

(a)

Components of noninterest expense

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


Year ended December 31, (in millions)	2022		2021		2020
Legal expense	$	266	$	426	$	1,115

- 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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