Trading Activities (Tables)

3 Months Ended

Mar. 31, 2022

Trading Activities [Abstract]

Trading Assets and Liabilities

Table 2.1 presents a summary of our trading assets and liabilities measured at fair value through earnings.

Table 2.1: Trading Assets and Liabilities

(in millions)	Mar 31, 2022		Dec 31, 2021
Trading assets:
Debt securities	$	86,672	88,265
Equity securities (1)	34,203		27,476
Loans held for sale	3,984		3,242
Gross trading derivative assets (1)	63,104		48,325
Netting (2)	(36,862)		(28,146)
Total trading derivative assets	26,242		20,179
Total trading assets	151,101		139,162
Trading liabilities:
Short sale	26,145		20,685
Other liabilities	237		—
Gross trading derivative liabilities (1)	53,430		42,449
Netting (2)	(39,056)		(33,978)
Total trading derivative liabilities	14,374		8,471
Total trading liabilities	$	40,756	$	29,156

(1)In first quarter 2022, we prospectively reclassified certain equity securities and related economic hedge derivatives from “not held for trading activities” to “held for trading activities” to better reflect the business activity of those financial instruments. For additional information on Trading Activities, see Note 1 (Summary of Significant Accounting Policies) in our 2021 Form 10-K.

(2)Represents balance sheet netting for trading derivative asset and liability balances, and trading portfolio level counterparty valuation adjustments.

Net Interest Income and Net Gains (Losses) from Trading Activities

Table 2.2 provides a summary of the net interest income earned from trading securities, and net gains and losses due to the realized and unrealized gains and losses from trading activities.

Net interest income also includes dividend income on trading securities and dividend expense on trading securities we have sold, but not yet purchased.

Table 2.2: Net Interest Income and Net Gains (Losses) from Trading Activities

	Quarter ended March 31,
(in millions)	2022		2021
Interest income:
Debt securities	$	548	529
Equity securities (1)	120		103
Loans held for sale	11		12
Total interest income	679		644
Less: Interest expense	132		110
Net interest income	547		534
Net gains (losses) from trading activities (2):
Debt securities	(3,648)		(2,106)
Equity securities (1)	(824)		1,153
Loans held for sale	9		24
Other liabilities	12		—
Derivatives (1)(3)	4,669		1,277
Total net gains from trading activities	218		348
Total trading-related net interest and noninterest income	$	765	882

(1)In first quarter 2022, we prospectively reclassified certain equity securities and related economic hedge derivatives from “not held for trading activities” to “held for trading activities” to better reflect the business activity of those financial instruments. For additional information on Trading Activities, see Note 1 (Summary of Significant Accounting Policies) in our 2021 Form 10-K.

(2)Represents realized gains (losses) from our trading activities and unrealized gains (losses) due to changes in fair value of our trading positions.

(3)Excludes economic hedging of mortgage banking and asset/liability management activities, for which hedge results (realized and unrealized) are reported with the respective hedged activities.