Interest Income and Interest Expense

12 Months Ended

Dec. 31, 2025

Interest Income (Expense), Operating [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.

Interest income and interest expense includes the current-period interest accruals for financial instruments measured at fair value, except for derivatives and certain financial instruments containing embedded derivatives; for those instruments, all changes in fair value including any interest elements, are primarily 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. Interest income and interest expense also includes the effect of derivatives that qualify for hedge accounting where applicable.

Interest income on loans and securities include the amortization and accretion of purchase premiums and discounts, as well as net deferred fees and costs on loans. These amounts are deferred in loans and investment securities, respectively, and recognized on a level-yield basis.

Refer to Notes 5, 10, 11, 12, and 20 for further information on accounting for interest income and interest expense related to hedge accounting, investment securities, securities financing activities (i.e., securities purchased or sold under resale or repurchase agreements; securities borrowed; and securities loaned), loans and long-term debt, respectively.

The following table presents the components of interest income and interest expense:

Year ended December 31, (in millions)	2025		2024		2023
Interest income
Loans(a)	$	93,843	$	92,353	$	83,384
Taxable securities	26,903		21,947		17,390
Non-taxable securities(b)	1,129		1,197		1,336
Total investment securities(a)	28,032		23,144		18,726
Trading assets - debt instruments	24,895		20,327		15,950
Federal funds sold and securities purchased under resale agreements	16,706		18,299		15,079
Securities borrowed	9,027		9,208		7,983
Deposits with banks	13,099		22,297		21,797
All other interest-earning assets(c)	7,739		8,305		7,669
Total interest income	$	193,341	$	193,933	$	170,588
Interest expense
Interest bearing deposits	$	45,112	$	49,559	$	40,016
Federal funds purchased and securities loaned or sold under repurchase agreements	22,411		19,149		13,259
Short-term borrowings	2,298		2,101		1,894
Trading liabilities - debt and all other interest-bearing liabilities(d)	8,965		10,238		9,396
Long-term debt	17,894		18,920		15,803
Beneficial interest issued by consolidated VIEs	1,218		1,383		953
Total interest expense	$	97,898	$	101,350	$	81,321
Net interest income	$	95,443	$	92,583	$	89,267
Provision for credit losses	14,212		10,678		9,320
Net interest income after provision for credit losses	$	81,231	$	81,905	$	79,947

(a)Includes the accretion of the purchase discount on certain acquired loans and investment securities associated with First Republic. Refer to Note 34 for additional information.

(b)Represents securities that are tax-exempt for U.S. federal income tax purposes.

(c)Includes interest earned on 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.

(d)All other interest-bearing liabilities includes interest expense on brokerage-related customer payables.