Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Asset and Liability Management Derivative Positions of Company

The following table summarizes the asset and liability management derivative positions of the Company:

	Asset Derivatives						Liability Derivatives
(Dollars in Millions)	Notional Value		Fair Value		Weighted- Average Remaining Maturity In Years		Notional Value		Fair Value		Weighted- Average Remaining Maturity In Years
March 31, 2018
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	–	$	–		–	$	4,600	$	37		2.42
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		3,892		126		6.48		500		–		.63
Net investment hedges
Foreign exchange forward contracts		192		1		.05		199		–		.05
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		1,895		8		.10		1,172		2		.09
Sell		19,126		19		1.14		5,193		17		.02
Options
Purchased		6,235		77		7.63		–		–		–
Written		1,123		26		.09		7		–		.12
Receive fixed/pay floating swaps		2,750		–		15.03		4,420		114		7.96
Pay fixed/receive floating swaps		4,333		–		7.72		88		–		5.23
Foreign exchange forward contracts		132		1		.05		540		3		.04
Equity contracts		25		1		.57		108		4		.50
Credit contracts		1,812		–		3.02		3,880		1		3.15
Other (a)		300		5		.02		1,514		127		1.81
Total	$	41,815	$	264			$	22,221	$	305
December 31, 2017
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	1,000	$	28		6.70	$	3,600	$	16		1.55
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		3,772		5		6.73		–		–		–
Net investment hedges
Foreign exchange forward contracts		–		–		–		373		8		.05
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		1,632		7		.10		1,326		2		.04
Sell		15,291		10		.89		4,511		10		.03
Options
Purchased		4,985		65		7.57		–		–		–
Written		1,285		21		.10		5		–		.05
Receive fixed/pay floating swaps		2,019		5		16.49		5,469		–		8.43
Pay fixed/receive floating swaps		4,844		21		7.69		46		1		6.70
Foreign exchange forward contracts		147		1		.02		669		8		.04
Equity contracts		45		–		1.10		88		1		.58
Credit contracts		1,559		–		3.41		3,779		1		3.16
Other (a)		–		–		–		1,164		125		2.50
Total	$	36,579	$	163			$	21,030	$	172

(a) Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common shares of Visa Inc. The Visa swap agreements had a total notional value, fair value and weighted average remaining maturity of $1.2 billion, $122 million and 2.25 years at March 31, 2018, respectively, compared to $1.2 billion, $125 million and 2.50 years at December 31, 2017, respectively. In addition, includes short-term underwriting purchase and sale commitments with total asset and liability notional values of $300 million at March 31, 2018.

Customer-Related Derivative Positions of Company

The following table summarizes the customer-related derivative positions of the Company:

	Asset Derivatives						Liability Derivatives
(Dollars in Millions)	Notional Value		Fair Value		Weighted- Average Remaining Maturity In Years		Notional Value		Fair Value		Weighted- Average Remaining Maturity In Years
March 31, 2018
Interest rate contracts
Receive fixed/pay floating swaps	$	25,579	$	492		4.41	$	75,797	$	630		4.45
Pay fixed/receive floating swaps		72,317		413		4.41		27,680		388		4.37
Options
Purchased		32,509		46		1.53		1,960		22		2.26
Written		2,060		23		2.38		30,225		43		1.39
Futures
Sell		8,151		8		1.08		–		–		–
Foreign exchange rate contracts
Forwards, spots and swaps		26,646		776		.77		25,751		756		.77
Options
Purchased		4,399		108		1.04		–		–		–
Written		–		–		–		4,399		108		1.04
Total	$	171,661	$	1,866			$	165,812	$	1,947
December 31, 2017
Interest rate contracts
Receive fixed/pay floating swaps	$	28,681	$	679		5.71	$	59,990	$	840		4.27
Pay fixed/receive floating swaps		63,038		860		4.20		25,093		602		5.76
Options
Purchased		29,091		22		1.61		880		14		4.24
Written		880		15		4.24		27,056		20		1.50
Futures
Sell		7,007		4		1.21		–		–		–
Foreign exchange rate contracts
Forwards, spots and swaps		24,099		656		.81		23,440		636		.83
Options
Purchased		4,026		83		1.20		–		–		–
Written		–		–		–		4,026		83		1.20
Total	$	156,822	$	2,319			$	140,485	$	2,195

Summary of Effective Portion of Gains (Losses) Recognized in Other Comprehensive Income (Loss) and Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings

The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax) for the three months ended March 31:

	Gains (Losses) Recognized in Other Comprehensive Income (Loss)						Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
(Dollars in Millions)	2018			2017			2018			2017
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts	$	64		$	4		$	(2	)	$	(9	)
Net investment hedges
Foreign exchange forward contracts		16			(7	)		–			–
Non-derivative debt instruments		(34	)		–			–			–

Note: The Company does not exclude components from effectiveness testing for cash flow and net investment hedges.

Effect of Fair Value and Cash Flow Hedge Accounting on Consolidated Statement of Income

The table below shows the effect of fair value and cash flow hedge accounting on the Consolidated Statement of Income for the three months ended March 31:

	Other Noninterest Income					Interest Expense
(Dollars in Millions)	2018		2017			2018			2017
Total amount of income and expense line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded	$	167	$	180		$	623		$	413
Asset and Liability Management Positions
Fair value hedges
Interest rate contract derivatives		–		(10	)		(43	)		–
Hedged items		–		10			43			–
Cash Flow hedges
Interest rate contract derivatives		–		–			3			14

Note: The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company did not reclassify gains or losses into earnings as a result of the discontinuance of cash flow hedges during the three months ended March 31, 2018 and 2017.

Summary of Cumulative Hedging Adjustment for Fair Value Hedges Included in Carrying Value of Hedged Assets (Liabilities)

The table below shows the cumulative hedging adjustment for fair value hedges that are included in the carrying amount of the hedged assets (liabilities):

	Carrying Amount of the Hedged Assets (Liabilities)				Cumulative Hedging Adjustment Included in the Carrying Amount of the Hedged Assets (Liabilities)
(Dollars in Millions)	March 31, 2018		December 31, 2017		March 31, 2018			December 31, 2017
Line Item in the Consolidated Balance Sheet
Long-term Debt	$	4,544	$	4,584	$	(48	)	$	(8	)

Note: The Company does not have any hedging adjustments for discontinued fair value hedges.

Summary of Gains (Losses) Recognized in Earnings for Other Economic Hedges and Customer-Related Positions

The table below shows the gains (losses) recognized in earnings for other economic hedges and the customer-related positions for the three months ended March 31:

(Dollars in Millions)	Location of Gains (Losses) Recognized in Earnings	2018			2017
Asset and Liability Management Positions
Other economic hedges
Interest rate contracts
Futures and forwards	Mortgage banking revenue	$	58		$	6
Purchased and written options	Mortgage banking revenue		42			40
Receive fixed/pay floating swaps	Mortgage banking revenue		(79	)		31
Pay fixed/receive floating swaps	Mortgage banking revenue		(31	)		(40	)
Foreign exchange forward contracts	Other noninterest income		12			(7	)
Equity contracts	Compensation expense		(1	)		1
Credit contracts	Other noninterest income		–			1
Customer-Related Positions
Interest rate contracts
Receive fixed/pay floating swaps	Other noninterest income		(1,164	)		(250	)
Pay fixed/receive floating swaps	Other noninterest income		1,167			269
Purchased and written options	Other noninterest income		–			(6	)
Futures	Other noninterest income		8			(2	)
Foreign exchange rate contracts
Forwards, spots and swaps	Commercial products revenue		23			22
Purchased and written options	Commercial products revenue		–			1