XML 62 R43.htm IDEA: XBRL DOCUMENT v3.23.3
Loans (Tables)
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Summary of Loans
The table below presents information about loans.
$ in millionsAmortized
Cost		Fair ValueHeld For SaleTotal
As of September 2023    
Loan Type    
Corporate$34,191 $871 $1,753 $36,815 
Commercial real estate24,382 551 739 25,672 
Residential real estate19,924 4,028 1 23,953 
Securities-based
15,053 – – 15,053 
Other collateralized
54,175 850 621 55,646 
Consumer:   
Installment272 – 6,103 6,375 
Credit cards17,885 – – 17,885 
Other1,332 148 273 1,753 
Total loans, gross167,214 6,448 9,490 183,152 
Allowance for loan losses(4,895)– – (4,895)
Total loans$162,319 $6,448 $9,490 $178,257 
As of December 2022    
Loan Type    
Corporate$36,822 $996 $2,317 $40,135 
Commercial real estate26,222 1,146 1,511 28,879 
Residential real estate18,523 4,511 1 23,035 
Securities-based
16,671 – – 16,671 
Other collateralized
50,473 716 513 51,702 
Consumer:   
Installment6,326 – – 6,326 
Credit cards15,820 – – 15,820 
Other1,723 286 252 2,261 
Total loans, gross172,580 7,655 4,594 184,829 
Allowance for loan losses(5,543)– – (5,543)
Total loans$167,037 $7,655 $4,594 $179,286 
In the table above:
•Loans held for investment that are accounted for at amortized cost include net deferred fees and costs, and unamortized premiums and discounts, which are amortized over the life of the loan. These amounts were less than 1% of loans accounted for at amortized cost as of both September 2023 and December 2022.
•During the first half of 2023, the firm completed the sale of substantially all of the Marcus installment loans portfolio.
•During the third quarter of 2023, in connection with the planned sale of GreenSky, the firm transferred the entire GreenSky installment loans portfolio of approximately $6.0 billion to held for sale. See Note 18 for information about related commitments that were classified as held for sale. As a result, the firm recognized net revenues of $(123) million, which were more than offset by a related reduction in reserves of $637 million in provision for credit losses.
•Substantially all loans had floating interest rates as of both September 2023 and December 2022.
Summary of Other Loans Receivable
The table below presents gross loans by an internally determined public rating agency equivalent or other credit metrics and the concentration of secured and unsecured loans.
$ in millions
Investment-Grade
Non-Investment- GradeOther Metrics/UnratedTotal
As of September 2023   
Accounting Method   
Amortized cost$88,225 $54,179 $24,810 $167,214 
Fair value1,850 2,441 2,157 6,448 
Held for sale635 2,624 6,231 9,490 
Total$90,710 $59,244 $33,198 $183,152 
Loan Type    
Corporate$8,296 $28,397 $122 $36,815 
Real estate:   
Commercial12,183 13,480 9 25,672 
Residential13,271 5,075 5,607 23,953 
Securities-based
11,397 635 3,021 15,053 
Other collateralized
44,634 10,932 80 55,646 
Consumer:   
Installment– – 6,375 6,375 
Credit cards– – 17,885 17,885 
Other929 725 99 1,753 
Total$90,710 $59,244 $33,198 $183,152 
Secured92 %90 %26 %79 %
Unsecured8 %10 %74 %21 %
Total100 %100 %100 %100 %
As of December 2022   
Accounting Method   
Amortized cost$88,497 $55,122 $28,961 $172,580 
Fair value2,116 2,968 2,571 7,655 
Held for sale557 3,991 46 4,594 
Total$91,170 $62,081 $31,578 $184,829 
Loan Type    
Corporate$10,200 $29,935 $– $40,135 
Real estate:   
Commercial11,922 16,822 135 28,879 
Residential11,994 5,670 5,371 23,035 
Securities-based
12,901 764 3,006 16,671 
Other collateralized
43,093 8,291 318 51,702 
Consumer:   
Installment– – 6,326 6,326 
Credit cards– – 15,820 15,820 
Other1,060 599 602 2,261 
Total$91,170 $62,081 $31,578 $184,829 
Secured89 %90 %27 %79 %
Unsecured11 %10 %73 %21 %
Total100 %100 %100 %100 %
In the table above:
•Substantially all residential real estate, securities-based, other collateralized and other loans included in the other metrics/unrated category consists of loans where the firm uses other key metrics to assess the borrower’s credit quality, such as loan-to-value ratio, delinquency status, collateral value, expected cash flows, FICO credit score (which measures a borrower’s creditworthiness by considering factors such as payment and credit history) and other risk factors.
•For installment and credit card loans included in the other metrics/unrated category, the evaluation of credit quality incorporates the borrower’s FICO credit score. FICO credit scores are periodically refreshed by the firm to assess the updated creditworthiness of the borrower. See “Vintage” below for information about installment and credit card loans by FICO credit scores.
Schedule of Credit Quality Indicators for Term Loans by Origination Year The tables below present gross loans accounted for at amortized cost (excluding installment and credit card loans) by an internally determined public rating agency equivalent or other credit metrics and origination year for term loans.
 As of September 2023
$ in millionsInvestment-
 Grade		Non-Investment-
 Grade		 Other Metrics/
 Unrated		Total
2023$569 $1,080 $– $1,649 
20221,577 3,265 – 4,842 
20211,191 4,531 – 5,722 
2020338 2,439 – 2,777 
2019161 2,328 – 2,489 
2018 or earlier445 2,788 – 3,233 
Revolving3,656 9,823 – 13,479 
Corporate7,937 26,254 – 34,191 
2023458 698 – 1,156 
20221,254 3,131 – 4,385 
20211,292 2,867 – 4,159 
2020356 1,262 – 1,618 
2019370 910 – 1,280 
2018 or earlier924 775 – 1,699 
Revolving7,296 2,789 – 10,085 
Commercial real estate11,950 12,432 – 24,382 
2023740 422 598 1,760 
2022841 757 1,254 2,852 
2021834 916 1,305 3,055 
20204 22 83 109 
20197 – 91 98 
2018 or earlier– 59 220 279 
Revolving9,894 1,877 – 11,771 
Residential real estate12,320 4,053 3,551 19,924 
20238 – – 8 
20225 – – 5 
20196 – – 6 
2018 or earlier– 291 – 291 
Revolving11,378 344 3,021 14,743 
Securities-based 11,397 635 3,021 15,053 
20234,723 1,629 – 6,352 
20222,109 423 10 2,542 
20212,678 1,400 22 4,100 
20201,367 621 32 2,020 
2019635 74 10 719 
2018 or earlier485 251 – 736 
Revolving31,740 5,966 – 37,706 
Other collateralized 43,737 10,364 74 54,175 
202355 15 – 70 
202256 12 – 68 
202117 70 – 87 
2020– 234 – 234 
2019– 4 4 
2018 or earlier– – 7 7 
Revolving756 106 – 862 
Other884 441 7 1,332 
Total$88,225 $54,179 $6,653 $149,057 
Percentage of total59 %36 %5 %100 %
 As of December 2022
$ in millionsInvestment-
 Grade		Non-Investment-
 Grade		Other Metrics/
 Unrated		Total
2022$2,607 $4,042 $2 $6,651 
20211,669 4,273 – 5,942 
2020684 2,595 – 3,279 
2019209 2,779 – 2,988 
2018759 1,911 – 2,670 
2017 or earlier508 2,329 – 2,837 
Revolving3,709 8,746 – 12,455 
Corporate10,145 26,675 2 36,822 
2022805 3,900 2 4,707 
2021771 3,460 – 4,231 
2020407 1,740 – 2,147 
2019480 1,267 – 1,747 
2018212 469 – 681 
2017 or earlier1,238 797 11 2,046 
Revolving7,660 3,003 – 10,663 
Commercial real estate11,573 14,636 13 26,222 
20221,493 833 1,307 3,633 
20211,263 888 1,357 3,508 
20208 6 89 103 
20197 – 99 106 
201810 50 138 198 
2017 or earlier31 10 142 183 
Revolving8,065 2,727 – 10,792 
Residential real estate10,877 4,514 3,132 18,523 
20225 – – 5 
20181 – – 1 
2017 or earlier– 291 – 291 
Revolving12,895 473 3,006 16,374 
Securities-based
12,901 764 3,006 16,671 
20224,556 751 113 5,420 
20213,339 1,098 146 4,583 
20201,871 701 36 2,608 
2019523 79 12 614 
2018545 108 6 659 
2017 or earlier487 108 – 595 
Revolving30,669 5,323 2 35,994 
Other collateralized 41,990 8,168 315 50,473 
202244 105 – 149 
202117 162 – 179 
2020– 29 262 291 
2019– 10 – 10 
2017 or earlier– – 5 5 
Revolving950 59 80 1,089 
Other1,011 365 347 1,723 
Total$88,497 $55,122 $6,815 $150,434 
Percentage of total
59 %37 %4 %100 %
In the tables above, revolving loans which converted to term loans were $1.23 billion as of September 2023 and $725 million as of December 2022, and primarily included other collateralized loans.
Summary of Consumer Loans by Refreshed FICO Credit Score
The table below presents gross installment loans accounted for at amortized cost by refreshed FICO credit scores and origination year and gross credit card loans by refreshed FICO credit scores.
$ in millionsGreater than or
 equal to 660		Less than 660Total
As of September 2023   
2023$82 $10 $92 
2022140 25 165 
2021 or earlier12 3 15 
Installment234 38 272 
Credit cards11,680 6,205 17,885 
Total$11,914 $6,243 $18,157 
Percentage of total:   
Installment86 %14 %100 %
Credit cards65 %35 %100 %
Total66 %34 %100 %
As of December 2022   
2022$4,349 $242 $4,591 
20211,080 109 1,189 
2020251 23 274 
2019160 23 183 
201870 13 83 
2017 or earlier5 1 6 
Installment5,915 411 6,326 
Credit cards10,762 5,058 15,820 
Total$16,677 $5,469 $22,146 
Percentage of total:  
Installment94 %6 %100 %
Credit cards68 %32 %100 %
Total75 %25 %100 %
In the table above, credit card loans consist of revolving lines of credit.
Summary of Credit Concentration by Region The table below presents the concentration of gross loans by region.
$ in millionsCarrying
 Value		AmericasEMEAAsiaTotal
As of September 2023     
Corporate$36,815 62 %30 %8 %100 %
Commercial real estate25,672 83 %14 %3 %100 %
Residential real estate23,953 96 %3 %1 %100 %
Securities-based
15,053 80 %19 %1 %100 %
Other collateralized
55,646 84 %14 %2 %100 %
Consumer:    
Installment6,375 100 %– – 100 %
Credit cards17,885 100 %– – 100 %
Other1,753 91 %9 %– 100 %
Total$183,152 83 %14 %3 %100 %
As of December 2022    
Corporate$40,135 57 %34 %9 %100 %
Commercial real estate28,879 79 %16 %5 %100 %
Residential real estate23,035 96 %3 %1 %100 %
Securities-based
16,671 83 %15 %2 %100 %
Other collateralized
51,702 86 %12 %2 %100 %
Consumer:    
Installment6,326 100 %– – 100 %
Credit cards15,820 100 %– – 100 %
Other2,261 89 %11 %– 100 %
Total$184,829 81 %15 %4 %100 %
In the table above:
•EMEA represents Europe, Middle East and Africa.
•The top five industry concentrations for corporate loans as of September 2023 were 26% for technology, media & telecommunications, 17% for diversified industrials, 12% for real estate, 10% for consumer & retail and 10% for healthcare.
•The top five industry concentrations for corporate loans as of December 2022 were 26% for technology, media & telecommunications, 18% for diversified industrials, 11% for real estate, 10% for healthcare and 10% for consumer & retail.
Summary of Past Due Loans
The table below presents information about past due loans.
$ in millions30-89 days90 days
 or more		Total
As of September 2023   
Corporate$– $80 $80 
Commercial real estate295 543 838 
Residential real estate1 5 6 
Securities-based
1 – 1 
Other collateralized
33 63 96 
Consumer:  
Installment8 6 14 
Credit cards423 424 847 
Other7 11 18 
Total$768 $1,132 $1,900 
Total divided by gross loans at amortized cost1.1 %
As of December 2022   
Corporate$– $92 $92 
Commercial real estate47 362 409 
Residential real estate4 6 10 
Securities-based
1 – 1 
Other collateralized
10 5 15 
Consumer:  
Installment46 17 63 
Credit cards291 265 556 
Other17 5 22 
Total$416 $752 $1,168 
Total divided by gross loans at amortized cost0.7 %
Summary of Nonaccrual Loans
The table below presents information about nonaccrual loans.
 As of
SeptemberDecember
$ in millions20232022
Corporate$1,614 $1,432 
Commercial real estate1,913 1,079 
Residential real estate19 93 
Other collateralized
814 65 
Other20 – 
Installment4 41 
Total$4,384 $2,710 
Total divided by gross loans at amortized cost2.6 %1.6 %
In the table above:
•Nonaccrual loans included $993 million as of September 2023 and $483 million as of December 2022 of loans that were 30 days or more past due.
•Loans that were 90 days or more past due and still accruing were not material as of both September 2023 and December 2022.
•Allowance for loan losses as a percentage of total nonaccrual loans was 111.7% as of September 2023 and 204.5% as of December 2022.
Summary of Loans and Lending Commitments Accounted for at Amortized Cost by Portfolio
The table below presents gross loans and lending commitments accounted for at amortized cost by portfolio.
As of
September 2023December 2022
$ in millionsLoansLending
 Commitments
LoansLending
 Commitments
Wholesale
Corporate$34,191 $142,270 $36,822 $137,149 
Commercial real estate24,382 3,286 26,222 3,692 
Residential real estate19,924 1,889 18,523 3,089 
Securities-based
15,053 815 16,671 508 
Other collateralized
54,175 15,411 50,473 13,209 
Other1,332 883 1,723 944 
Consumer
Installment272 1 6,326 1,882 
Credit cards17,885 68,394 15,820 62,216 
Total$167,214 $232,949 $172,580 $222,689 
In the table above, wholesale loans included $4.38 billion as of September 2023 and $2.67 billion as of December 2022 of nonaccrual loans for which the allowance for credit losses was measured on an asset-specific basis. The allowance for credit losses on these loans was $708 million as of September 2023 and $535 million as of December 2022. These loans included $922 million as of September 2023 and $384 million as of December 2022 of loans which did not require a reserve as the loan was deemed to be recoverable.
Summary of Changes in Allowance for Loan Losses and Allowance for Losses on Lending Commitments
The table below presents information about the allowance for credit losses.
$ in millionsWholesale Consumer Total
Three Months Ended September 2023  
Allowance for loan losses   
Beginning balance$2,497 $2,735 $5,232 
Charge-offs
(166)(302)(468)
Recoveries
9 26 35 
Net (charge-offs)/recoveries(157)(276)(433)
Provision149 (37)112 
Other(16)– (16)
Ending balance$2,473 $2,422 $4,895 
Allowance ratio1.7 %13.3 %2.9 %
Net charge-off ratio0.4 %5.1 %1.0 %
Allowance for losses on lending commitments
Beginning balance$729 $48 $777 
Provision(57)(48)(105)
Other(2)– (2)
Ending balance$670 $– $670 
Three Months Ended September 2022  
Allowance for loan losses   
Beginning balance$2,458 $2,104 $4,562 
Charge-offs
(65)(150)(215)
Recoveries
22 21 43 
Net (charge-offs)/recoveries(43)(129)(172)
Provision78 403 481 
Other(25)– (25)
Ending balance$2,468 $2,378 $4,846 
Allowance ratio1.7 %12.6 %2.9 %
Net charge-off ratio0.1 %2.9 %0.4 %
Allowance for losses on lending commitments
Beginning balance$702 $3 $705 
Provision(10)44 34 
Ending balance$692 $47 $739 
Nine Months Ended September 2023
Allowance for loan losses
Beginning balance$2,562 $2,981 $5,543 
Charge-offs(350)(893)(1,243)
Recoveries32 76 108 
Net (charge-offs)/recoveries(318)(817)(1,135)
Provision293 258 551 
Other(64)– (64)
Ending balance$2,473 $2,422 $4,895 
Allowance ratio1.7 %13.3 %2.9 %
Net charge-off ratio0.3 %5.1 %0.9 %
Allowance for losses on lending commitments
Beginning balance$711 $63 $774 
Provision(37)(63)(100)
Other(4)– (4)
Ending balance$670 $– $670 
Nine Months Ended September 2022
Allowance for loan losses
Beginning balance$2,135 $1,438 $3,573 
Charge-offs(237)(348)(585)
Recoveries48 62 110 
Net (charge-offs)/recoveries(189)(286)(475)
Provision551 1,226 1,777 
Other(29)– (29)
Ending balance$2,468 $2,378 $4,846 
Allowance ratio1.7 %12.6 %2.9 %
Net charge-off ratio0.2 %2.5 %0.4 %
Allowance for losses on lending commitments
Beginning balance$589 $187 $776 
Provision106 (140)(34)
Other(3)– (3)
Ending balance$692 $47 $739 
In the table above:
•The allowance ratio is calculated by dividing the allowance for loan losses by gross loans accounted for at amortized cost.
•The net charge-off ratio is calculated by dividing annualized net (charge-offs)/recoveries by average gross loans accounted for at amortized cost.
Schedule of Forecasted Economic Scenarios
The table below presents the forecasted U.S. unemployment and U.S. GDP growth rates used in the baseline economic scenario of the forecast model.
As of September 2023
U.S. unemployment rate 
Forecast for the quarter ended: 
December 20233.9 %
June 20244.3 %
December 20244.3 %
Growth in U.S. GDP 
Forecast for the year: 
20232.1 %
20241.2 %
20251.7 %
The adverse economic scenario of the forecast model reflects a global recession in the fourth quarter of 2023 through the third quarter of 2024, resulting in an economic contraction and rising unemployment rates. In this scenario, the U.S. unemployment rate peaks at approximately 7.4% during the fourth quarter of 2024 and the maximum decline in the quarterly U.S. GDP relative to the third quarter of 2023 is approximately 2.7%, which occurs during the third quarter of 2024.
In the table above:
•U.S. unemployment rate represents the rate forecasted as of the respective quarter-end.
•Growth in U.S. GDP represents the year-over-year growth rate forecasted for the respective years.
•While the U.S. unemployment and U.S. GDP growth rates are significant inputs to the forecast model, the model contemplates a variety of other inputs across a range of scenarios to provide a forecast of future economic conditions. Given the complex nature of the forecasting process, no single economic variable can be viewed in isolation and independently of other inputs.
Summary of Estimated Fair Value of Loans and Lending Commitments that are not Accounted for at Fair Value
The table below presents the estimated fair value of loans that are not accounted for at fair value and in what level of the fair value hierarchy they would have been classified if they had been included in the firm’s fair value hierarchy.
 Carrying ValueEstimated Fair Value
$ in millionsLevel 2Level 3Total
As of September 2023    
Amortized cost$162,319 $88,954 $74,463 $163,417 
Held for sale$9,490 $7,815 $1,685 $9,500 
As of December 2022    
Amortized cost$167,037 $85,921 $83,121 $169,042 
Held for sale$4,594 $2,592 $2,014 $4,606