Trading Activities (Tables)

9 Months Ended

Sep. 30, 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)	Sep 30, 2022		Dec 31, 2021
Trading assets:
Debt securities	$	85,766	88,265
Equity securities (1)	23,111		27,476
Loans held for sale	1,525		3,242
Gross trading derivative assets (1)	92,103		48,325
Netting (2)	(64,849)		(28,146)
Total trading derivative assets	27,254		20,179
Total trading assets	137,656		139,162
Trading liabilities:
Short sale	26,057		20,685
Other liabilities	915		—
Gross trading derivative liabilities (1)	86,228		42,449
Netting (2)	(64,274)		(33,978)
Total trading derivative liabilities	21,954		8,471
Total trading liabilities	$	48,926	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 September 30,			Nine months ended September 30,
(in millions)	2022		2021	2022		2021
Interest income:
Debt securities	$	626	512	$	1,723	1,537
Equity securities (1)	108		104	367		300
Loans held for sale	10		12	30		27
Total interest income	744		628	2,120		1,864
Less: Interest expense	153		90	443		305
Net interest income	591		538	1,677		1,559
Net gains (losses) from trading activities (2):
Debt securities	(3,551)		(284)	(10,302)		(1,621)
Equity securities (1)	(1,393)		771	(5,823)		2,780
Loans held for sale	3		9	13		48
Other liabilities	34		—	57		—
Derivatives (1)(3)	5,807		(404)	17,619		(746)
Total net gains from trading activities	900		92	1,564		461
Total trading-related net interest and noninterest income	$	1,491	630	$	3,241	2,020

(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.