Accumulated Other Comprehensive Income/(Loss)

3 Months Ended

Mar. 31, 2024

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income/(Loss)

Accumulated other comprehensive income/(loss)

AOCI includes the after-tax change in unrealized gains and losses on investment securities, foreign currency translation adjustments (including the impact of related derivatives), fair value changes of excluded components on fair value hedges, cash flow hedging activities, net gain/(loss) related to the Firm’s defined benefit pension and OPEB plans, and fair value option-elected liabilities arising from changes in the Firm’s own credit risk (DVA).

As of or for the three months ended March 31, 2024 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)
Balance at January 1, 2024		$	(3,743)			$	(1,216)	$	(134)		$	(3,932)		$	(1,078)		$	(340)		$	(10,443)
Net change		141				(204)		(21)			(889)			26			(249)			(1,196)
Balance at March 31, 2024		$	(3,602)	(a)		$	(1,420)	$	(155)		$	(4,821)		$	(1,052)		$	(589)		$	(11,639)
As of or for the three months ended March 31, 2023 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)
Balance at January 1, 2023		$	(9,124)			$	(1,545)	$	(33)		$	(5,656)		$	(1,451)		$	468		$	(17,341)
Net change		2,212				197		(21)			798			(55)			(208)			2,923
Balance at March 31, 2023		$	(6,912)	(a)		$	(1,348)	$	(54)		$	(4,858)		$	(1,506)		$	260		$	(14,418)

(a)As of March 31, 2024 and 2023 included after-tax net unamortized unrealized gains/(losses) of $(824) million and $(1.3) billion related to AFS securities that have been transferred to HTM, respectively. As of March 31, 2023 included after-tax net unamortized unrealized gains/(losses) of $(29) million related to HTM securities that have been transferred to AFS as permitted by the new hedge accounting guidance adopted on January 1, 2023. Refer to Note 9 for further information.

The following table presents the pre-tax and after-tax changes in the components of OCI.

	2024						2023
Three months ended March 31, (in millions)	Pre-tax		Tax effect		After-tax		Pre-tax		Tax effect		After-tax
Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period	$	(181)	$	44	$	(137)	$	2,042	$	(490)	$	1,552
Reclassification adjustment for realized (gains)/losses included in net income(a)	366		(88)		278		868		(208)		660
Net change	185		(44)		141		2,910		(698)		2,212
Translation adjustments(b):
Translation	(1,365)		68		(1,297)		973		(41)		932
Hedges	1,442		(349)		1,093		(963)		228		(735)
Net change	77		(281)		(204)		10		187		197
Fair value hedges, net change(c)	(27)		6		(21)		(28)		7		(21)
Cash flow hedges:
Net unrealized gains/(losses) arising during the period	(1,762)		426		(1,336)		567		(136)		431
Reclassification adjustment for realized (gains)/losses included in net income(d)	589		(142)		447		483		(116)		367
Net change	(1,173)		284		(889)		1,050		(252)		798
Defined benefit pension and OPEB plans, net change	36		(10)		26		(71)		16		(55)
DVA on fair value option elected liabilities, net change	(327)		78		(249)		(274)		66		(208)
Total other comprehensive income/(loss)	$	(1,229)	$	33	$	(1,196)	$	3,597	$	(674)	$	2,923

    

(a)The pre-tax amount is reported in Investment securities gains/(losses) in the Consolidated statements of income.

(b)Reclassifications of pre-tax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of income. There were no sales or liquidations of legal entities that resulted in reclassifications for the three month period ended March 31, 2024. During the three months ended March 31, 2023, the Firm reclassified a net pre-tax loss of $(5) million to other revenue related to the acquisition of CIFM of which $(41) million related to the net investment hedge loss.

(c)Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial cost of cross-currency basis spreads is recognized in earnings as part of the accrual of interest on the cross-currency swaps.

(d)The pre-tax amounts are primarily recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income.