Derivative Instruments (Tables)

12 Months Ended

Dec. 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
December 31, 2018
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps	$	7,422	$	8		3.11	$	4,320	$	–		1.77
Net investment hedges
Foreign exchange forward contracts		209		5		.05		223		1		.05
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		2,839		27		.07		1,140		5		.05
Sell		994		3		.06		13,968		30		.72
Options
Purchased		5,080		88		10.77		–		–		–
Written		584		16		.09		3		–		.09
Receive fixed/pay floating swaps		3,605		–		14.80		4,333		–		6.97
Pay fixed/receive floating swaps		4,333		–		6.97		1,132		–		7.64
Foreign exchange forward contracts		549		7		.03		75		1		.05
Equity contracts		19		1		.82		104		2		.45
Credit contracts		2,318		–		3.50		4,923		2		4.04
Other (a)		1		–		.01		1,458		84		1.50
Total	$	27,953	$	155			$	31,679	$	125
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 $1.5 billion, $84 million and 1.50 years at December 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 $1 million at December 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
December 31, 2018
Interest rate contracts
Receive fixed/pay floating swaps	$	44,976	$	755		6.49	$	62,597	$	456		4.28
Pay fixed/receive floating swaps		63,825		289		4.07		45,129		422		6.16
Options
Purchased		41,711		51		1.54		1,940		30		1.98
Written		2,060		32		2.07		39,538		51		1.44
Futures
Buy		460		–		1.58		–		–		–
Sell		–		–		–		6,190		1		.59
Foreign exchange rate contracts
Forwards, spots and swaps		26,210		681		.91		25,571		663		.88
Options
Purchased		2,779		47		.75		–		–		–
Written		–		–		–		2,779		47		.75
Total	$	182,021	$	1,855			$	183,744	$	1,670
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 years ended December 31:

	Gains (Losses) Recognized in Other Comprehensive Income (Loss)							Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
(Dollars in Millions)	2018		2017			2016		2018		2017			2016
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts	$	29	$	(3	)	$	46	$	3	$	(19	)	$	(76	)
Net investment hedges
Foreign exchange forward contracts		39		(56	)		33		–		–			–
Non-derivative debt instruments		32		(46	)		–		–		–			–

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 years ended December 31:

	Other Noninterest Income								Interest Expense
(Dollars in Millions)	2018		2017			2016			2018			2017		2016
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	$	910	$	774		$	911		$	3,254		$	1,966	$	1,468
Asset and Liability Management Positions
Fair value hedges
Interest rate contract derivatives		–		(28	)		(31	)		5			–		–
Hedged items		–		28			31			(5	)		–		–
Cash Flow hedges
Interest rate contract derivatives		–		–			–			(5	)		30		124

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 years ended December 31, 2018, 2017 and 2016.

Summary of Cumulative Hedging Adjustments and the Carrying Amount of Assets (Liabilities) Designated in Fair Value Hedges

The table below shows cumulative hedging adjustments and the carrying amount of assets (liabilities) designated in fair value hedges:

	Carrying Amount of the Hedged Assets (Liabilities)				Cumulative Hedging Adjustment (a)
At December 31 (Dollars in Millions)	2018		2017		2018			2017
Line Item in the Consolidated Balance Sheet
Long-term Debt	$	–	$	4,584	$	(27	)	$	(8	)

(a) The cumulative hedging adjustment at December 31, 2018 relates to discontinued hedging relationships. The Company did not have any hedging adjustments for discontinued fair value hedges at December 31, 2017.

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 years ended December 31:

(Dollars in Millions)	Location of Gains (Losses) Recognized in Earnings		2018			2017			2016
Asset and Liability Management Positions
Other economic hedges
Interest rate contracts
Futures and forwards		Mortgage banking revenue	$	110		$	24		$	101
Purchased and written options		Mortgage banking revenue		188			237			331
Receive fixed/pay floating swaps		Mortgage banking revenue		61			255			226
Pay fixed/receive floating swaps		Mortgage banking revenue		(172	)		(220	)		(140	)
Foreign exchange forward contracts		Other noninterest income		39			(69	)		(14	)
Equity contracts		Compensation expense		(4	)		1			1
Credit contracts		Other noninterest income		2			3			1
Other		Other noninterest income		2			(1	)		(39	)
Customer-Related Positions
Interest rate contracts
Receive fixed/pay floating swaps		Commercial products revenue		(192	)		(876	)		(708	)
Pay fixed/receive floating swaps		Commercial products revenue		239			943			769
Purchased and written options		Commercial products revenue		2			(24	)		(5	)
Futures		Commercial products revenue		9			(3	)		(6	)
Foreign exchange rate contracts
Forwards, spots and swaps		Commercial products revenue		84			92			88
Purchased and written options		Commercial products revenue		–			2			(1	)