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Loans (Tables)
 12 Months Ended
Dec. 31, 2019
Summary of Loans
The table below presents information about loans.
 
                                 
$ in millions
   
Amortized Cost
     
Fair
Value
     
Held For Sale
     
Total
 
As of December 2019
  
 
 
    
     
     
 
Loan Type
  
 
 
    
     
     
 
Corporate
 
 
$41,129
 
  
 
$  3,224
 
  
 
$1,954
 
  
 
$  46,307
 
Wealth management
 
 
20,116
 
  
 
7,824
 
    
–
   
 
27,940
 
Commercial real estate
 
 
13,258
 
  
 
1,876
 
  
 
2,609
 
  
 
17,743
 
Residential real estate
 
 
6,132
 
  
 
792
 
  
 
34
 
  
 
6,958
 
Consumer
 
 
4,747
 
    
–
   
 
–
 
  
 
4,747
 
Credit cards
 
 
1,858
 
    
–
     
–
   
 
1,858
 
Other
 
 
3,396
 
  
 
670
 
  
 
726
 
  
 
4,792
 
Total loans, gross
 
 
90,636
 
  
 
14,386
 
  
 
5,323
 
  
 
110,345
 
Allowance for loan losses
 
 
(1,441
)
   
–
     
–
   
 
(1,441
)
Total loans
  
 
$89,195
 
  
 
$14,386
 
  
 
$5,323
 
  
 
$108,904
 
 
As of December 2018
  
 
 
    
     
     
 
Loan Type
  
 
 
    
     
     
 
Corporate
   
$37,283
     
$  2,819
     
$2,273
     
$  42,375
 
Wealth management
   
17,518
     
7,250
     
–
     
24,768
 
Commercial real estate
   
11,441
     
1,718
     
1,019
     
14,178
 
Residential real estate
   
7,284
     
973
     
44
     
8,301
 
Consumer
   
4,536
     
–
     
–
     
4,536
 
Other
   
3,594
     
656
     
495
     
4,745
 
Total loans, gross
   
81,656
     
13,416
     
3,831
     
98,903
 
Allowance for loan losses
   
(1,066
 )    
–
     
–
     
(1,066
 )
Total loans
   
$80,590
     
$13,416
     
$3,831
     
$  97,837
 
Summary of Purchased Credit Impaired (PCI) Loans
The tables below present information about PCI loans.
 
       
  
As of December
 
                 
$ in millions
 
 
2019
 
    
2018
 
Commercial real estate
 
 
$   455
 
    
$   581
 
Residential real estate
 
 
1,167
 
    
2,457
 
Other
 
 
–
 
    
4
 
Total gross carrying value
  
 
$1,622
 
    
$3,042
 
 
Total outstanding principal balance
 
 
$3,231
 
    
$5,576
 
Total accretable yield
 
 
$   220
 
    
$   459
 
 
       
  
Year Ended December
 
                         
$ in millions
 
 
2019
 
    
2018
     
2017
 
Acquired during the period
 
 
 
    
     
 
Fair value
 
 
$  –
 
    
$   839
     
$1,769
 
Expected cash flows
 
 
$  –
 
    
$   937
     
$1,961
 
Contractually required cash flows
 
 
$  –
 
    
$1,881
     
$4,092
 
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-
Grade
      
Other/
Unrated
     
Total
 
As of December 2019
    
     
     
 
Amortized cost
 
 
$30,266
 
  
 
$51,222
 
  
 
$  
9,148
 
  
 
$  
90,636
 
Fair value
 
 
2,844
 
  
 
5,174
 
  
 
6,368
 
  
 
14,386
 
Held for sale
 
 
323
 
  
 
4,368
 
  
 
632
 
  
 
5,323
 
Total
 
 
$
33,433
 
  
 
$
60,764
 
  
 
$
16,148
 
  
 
$
110,345
 
 
Secured
 
 
25%
 
  
 
50%
 
  
 
8%
 
  
 
83%
 
Unsecured
 
 
5%
 
  
 
5%
 
  
 
7%
 
  
 
17%
 
Total
 
 
30%
 
  
 
55%
 
  
 
15%
 
  
 
100%
 
 
As of December 2018
    
     
     
 
Amortized cost
   
$28,290
     
$45,468
     
$  7,898
     
$  81,656
 
Fair value
   
2,371
     
4,999
     
6,046
     
13,416
 
Held for sale
   
1,231
     
2,088
     
512
     
3,831
 
Total
   
$31,892
     
$52,555
     
$14,456
     
$  98,903
 
 
Secured
   
25%
     
50%
     
9%
     
84%
 
Unsecured
   
7%
     
3%
     
6%
     
16%
 
Total
   
32%
     
53%
     
15%
     
100%
 
Summary of Consumer Loans by Refreshed FICO Credit Score
The table below presents gross consumer and credit card loans and the concentration by refreshed FICO credit score.
 
 
 
 
 
 
As of December
 
 
 
 
 
 
 
 
 
 
$ in millions
 
 
2019
 
 
 
2018
 
Consumer, gross
 
 
$4,747
 
 
 
$4,536
 
Credit cards, gross
 
 
1,858
 
 
 
–
 
Total
 
 
$6,605
 
 
 
$4,536
 
 
Refreshed FICO credit score
 
 
 
 
 
 
Greater than or equal to 660
 
 
85%
 
 
 
88%
 
Less than 660
 
 
15%
 
 
 
12%
 
Total
 
 
100%
 
 
 
100%
 
Summary of Gross Loans Receivable and Lending Commitment by Impairment Methodology
The table below presents gross loans and lending commitments accounted for at amortized cost by impairment methodology.
 
                                 
$ in millions
   
Specific
     
Portfolio
     
PCI
     
Total
 
As of December 2019
  
 
 
    
     
     
 
Loans
 
 
 
    
     
     
 
Corporate
 
 
$1,122
 
  
 
$  40,007
 
  
 
$       –
 
  
 
$  41,129
 
Wealth management
 
 
52
 
  
 
20,064
 
  
 
–
 
  
 
20,116
 
Commercial real estate
 
 
175
 
  
 
12,628
 
  
 
455
 
  
 
13,258
 
Residential real estate
 
 
143
 
  
 
4,822
 
  
 
1,167
 
  
 
6,132
 
Consumer
 
 
–
 
  
 
4,747
 
  
 
–
 
  
 
4,747
 
Credit cards
 
 
–
 
  
 
1,858
 
  
 
–
 
  
 
1,858
 
Other
 
 
–
 
  
 
3,396
 
  
 
–
 
  
 
3,396
 
Total
 
 
$1,492
 
  
 
$  87,522
 
  
 
$1,622
 
  
 
$  90,636
 
Lending Commitments
 
 
 
    
     
     
 
Corporate
 
 
$
  
 128
 
  
 
$
127,098
 
  
 
$       –
 
  
 
$
127,226
 
Credit card
 
 
–
 
  
 
13,669
 
  
 
–
 
  
 
13,669
 
Other
 
 
11
 
  
 
9,194
 
  
 
–
 
  
 
9,205
 
Total
 
 
$
  
 139
 
  
 
$149,961
 
  
 
$       
–
 
  
 
$150,100
 
 
As of December 2018
  
 
 
    
     
     
 
Loans
 
 
 
    
     
     
 
Corporate
   
$   358
     
$  36,925
     
$       
 
–
      
$  37,283
 
Wealth management
   
46
      
17,472
      
–
     
17,518
  
Commercial real estate
   
9
     
10,851
     
581
     
11,441
 
Residential real estate
   
425
     
4,402
     
2,457
     
7,284
 
Consumer
   
–
     
4,536
     
–
     
4,536
 
Other
   
–
     
3,590
     
4
     
3,594
 
Total
   
$   838
     
$  77,776
     
$3,042
     
$  81,656
 
Lending Commitments
 
 
 
    
     
     
 
Corporate
   
$     31
     
$113,453
     
$       
 
–
      
$113,484
 
Other
   
–
     
7,513
     
–
     
7,513
 
Total
   
$     31
     
$120,966
     
$       
 
–
      
$120,997
 
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.
 
       
  
Year Ended December
 
                 
  
2019
   
        
  
2018
 
                                     
$ in millions
 
 
Loans
 
  
 
Lending
Commitments
 
  
   
Loans
     
Lending
Commitments
 
Changes in the allowance for credit losses
   
     
 
Beginning balance
 
 
$1,066
 
  
 
$286
 
  
   
$   803
     
$274
 
Net charge-offs
 
 
(490
)
 
 
–
 
  
   
(337
 )    
–
 
Provision
 
 
990
 
  
 
75
 
  
   
654
     
20
 
Other
 
 
(125
)
 
 
–
 
  
   
(54
 )    
(8
 )
Ending balance
 
 
$1,441
 
  
 
$361
 
  
   
$1,066
     
$286
 
Allowance for losses by impairment methodology
 
Specific
 
 
$   207
 
  
 
$  21
 
  
   
$   102
     
$    3
 
Portfolio
 
 
1,065
 
  
 
340
 
  
   
848
     
283
 
PCI
 
 
169
 
  
 
–
 
  
   
116
     
–
 
Total
 
 
$1,441
 
  
 
$361
 
  
   
$1,066
     
$286
 
Schedule Of Gross Loans By Regulatory Risk Rating
The firm also assigns a regulatory risk rating to its loans based on the definitions provided by the U.S. federal bank regulatory agencies. The table below presents gross loans by regulatory risk rating.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ in millions
 
 
Non-criticized/
Pass
 
 
 
Criticized
 
 
 
Total
 
As of December 2019
 
 
 
 
 
 
 
 
 
Amortized cost
 
 
$  82,952
 
 
 
$
 
 
7,684
 
 
 
$  90,636
 
Fair value
 
 
12,153
 
 
 
2,233
 
 
 
14,386
 
Held for sale
 
 
5,216
 
 
 
107
 
 
 
5,323
 
Total
 
 
$100,321
 
 
 
$10,024
 
 
 
$110,345
 
 
As of December 2018
 
 
 
 
 
 
 
 
 
Amortized cost
 
 
$  75,596
 
 
 
$
 
 
6,060
 
 
 
$  81,656
 
Fair value
 
 
10,752
 
 
 
2,664
 
 
 
13,416
 
Held for sale
 
 
3,817
 
 
 
14
 
 
 
3,831
 
Total
 
 
$  90,165
 
 
 
$
 
 
8,738
 
 
 
$  98,903
 
Fair value of loans held for investment by level
The table below presents loans held for investment accounted for at fair value under the fair value option by level within the fair value hierarchy.
 
                                 
$ in millions
   
Level 1
     
Level 2
     
Level 3
     
Total
 
As of December 2019
  
 
 
    
     
     
 
Loan Type
 
 
 
    
     
     
 
Corporate
 
 
$  –
 
  
 
$  2,472
 
  
 
$   752
 
  
 
$  3,224
 
Wealth management
 
 
–
 
  
 
7,764
 
  
 
60
 
  
 
7,824
 
Commercial real estate
 
 
–
 
  
 
1,285
 
  
 
591
 
  
 
1,876
 
Residential real estate
 
 
–
 
  
 
571
 
  
 
221
 
  
 
792
 
Other
 
 
–
 
  
 
404
 
  
 
266
 
  
 
670
 
Total
 
 
$  –
 
  
 
$12,496
 
  
 
$1,890
 
  
 
$14,386
 
 
As of December 2018
  
 
 
    
     
     
 
Loan Type
 
 
 
    
     
     
 
Corporate
   
$  –
     
$  2,160
     
$   659
     
$  2,819
 
Wealth management
   
–
     
7,192
     
58
     
7,250
 
Commercial real estate
   
–
     
1,041
     
677
     
1,718
 
Residential real estate
   
–
     
683
     
290
     
973
 
Other
   
–
     
350
     
306
     
656
 
Total
   
$  –
     
$11,426
     
$1,990
     
$13,416
 
Fair value, loans receivable, measurement inputs, disclosure
The table below presents the amount of level 3 loans, and ranges and weighted averages of significant unobservable inputs used to value such loans.
 
       
  
Level 3 Assets and Range of Significant Unobservable
Inputs (Weighted Average) as of December 
  
                 
$ in millions
 
 
2019
 
    
2018
 
Corporate
 
 
 
    
 
Level 3 assets
 
 
$752
 
    
$659
 
Yield
 
 
1.9% to 26.3% (9.5%
)
   
4.8% to 30.0% (12.5%
 )
Recovery rate
 
 
13.5% to 78.0% (44.4%
)
   
13.5% to 55.0% (28.4%
 )
Duration (years)
 
 
3.7 to 5.8 (3.9
)
   
1.6 to 6.7 (3.0
 )
Commercial real estate
   
 
Level 3 assets
 
 
$591
 
    
$677
 
Yield
 
 
7.0% to 16.0% (9.3%
)
   
8.3% to 22.0% (11.7%
 )
Recovery rate
 
 
5.9% to 85.2% (48.6%
)
   
9.7% to 64.9% (37.8%
 )
Duration (years)
 
 
0.2 to 5.3 (3.5
)
   
0.7 to 5.9 (3.8
 )
Residential real estate
   
 
Level 3 assets
 
 
$221
 
    
$290
 
Yield
 
 
1.1% to 14.0% (11.5%
)
   
2.6% to 19.3% (11.9%
 )
Duration (years)
 
 
1.1 to 4.8 (4.0
)
   
1.4 to 5.4 (4.6
 )
Wealth management and other
   
 
Level 3 assets
 
 
$326
 
    
$364
 
Yield
 
 
3.9% to 16.0% (9.9%
)
   
4.7% to 11.5% (9.0%
 )
Duration (years)
 
 
1.6 to 6.7 (3.7
)
   
2.2 to 4.8 (2.8
 )
Reconciliation of changes in fair value for level 3 loans.
The table below presents a summary of the changes in fair value for level 3 loans.
 
 
 
 
 
  
Year Ended December
 
                 
$ in millions
 
 
2019
 
    
2018
 
Beginning balance
 
 
$1,990
 
    
$1,973
 
Net realized gains/(losses)
 
 
46
 
    
74
 
Net unrealized gains/(losses)
 
 
85
 
    
72
 
Purchases
 
 
249
 
    
88
 
Sales
 
 
(14
)
   
(66
 )
Settlements
 
 
(795
)
   
(717
 )
Transfers into level 3
 
 
444
 
    
995
 
Transfers out of level 3
 
 
(115
)
   
(429
 )
Ending balance
 
 
$1,890
 
    
$1,990
 
The table below presents information, by loan type, for loans included in the summary table above.
 
       
  
Year Ended December
 
                 
$ in millions
 
 
2019
 
    
2018
 
Corporate
 
 
 
    
 
Beginning balance
 
 
$ 659
 
    
$ 672
 
Net realized gains/(losses)
 
 
5
 
    
15
 
Net unrealized gains/(losses)
 
 
(27
)
   
(11
 )
Purchases
 
 
151
 
    
69
 
Sales
 
 
–
 
    
(58
 )
Settlements
 
 
(298
)
   
(225
 )
Transfers into level 3
 
 
290
 
    
310
 
Transfers out of level 3
 
 
(28
)
   
(113
 )
Ending balance
 
 
$ 752
 
    
$ 659
 
Commercial real estate
 
 
 
    
 
Beginning balance
 
 
$ 677
 
    
$ 853
 
Net realized gains/(losses)
 
 
20
 
    
38
 
Net unrealized gains/(losses)
 
 
28
 
    
33
 
Purchases
 
 
11
 
    
14
 
Sales
 
 
(9
)
   
(4
 )
Settlements
 
 
(229
)
   
(330
 )
Transfers into level 3
 
 
94
 
    
382
 
Transfers out of level 3
 
 
(1
)
   
(309
 )
Ending balance
 
 
$ 591
 
    
$ 677
 
Residential real estate
 
 
 
    
 
Beginning balance
 
 
$ 290
 
    
$ 213
 
Net realized gains/(losses)
 
 
15
 
    
18
 
Net unrealized gains/(losses)
 
 
26
 
    
(13
 )
Purchases
 
 
58
 
    
3
 
Sales
 
 
(5
)
   
(4
 )
Settlements
 
 
(137
)
   
(70
 )
Transfers into level 3
 
 
60
 
    
143
 
Transfers out of level 3
 
 
(86
)
   
–
 
Ending balance
 
 
$ 221
 
    
$ 290
 
Wealth management and other
 
 
 
    
 
Beginning balance
 
 
$ 364
 
    
$ 235
 
Net realized gains/(losses)
 
 
6
 
    
3
 
Net unrealized gains/(losses)
 
 
58
 
    
63
 
Purchases
 
 
29
 
    
2
 
Sales
 
 
–
 
    
–
 
Settlements
 
 
(131
)
   
(92
 )
Transfers into level 3
 
 
–
 
    
160
 
Transfers out of level 3
 
 
–
 
    
(7
 )
Ending balance
 
 
$ 326
 
    
$ 364
 
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
   
Estimated Fair Value
 
                                 
$ in millions
   
Value
     
Level 2
     
Level 3
     
Total
 
As of December 2019
  
 
 
    
     
     
 
Amortized cost
 
 
$89,195
 
  
 
$52,091
 
  
 
$37,095
 
  
 
$89,186
 
Held for sale
 
 
$  5,323
 
  
 
$  4,157
 
  
 
$  1,252
 
  
 
$  5,409
 
 
As of December 2018
  
 
 
    
     
     
 
Amortized cost
   
$80,590
     
$40,640
     
$40,103
     
$80,743
 
Held for sale
   
$  3,831
     
$  2,662
     
$  1,180
     
$  3,842
 
Geographic Concentration Risk [Member]  
Summary of detailed information about concentration of our loans by region of borrowers The table below presents the concentration of gross loans by region.
 
 
 
 
 
 
As of December
 
 
 
 
 
 
 
 
 
 
$ in millions
 
 
2019
 
 
 
2018
 
Loans, gross
 
 
$110,345
 
 
 
$98,903
 
 
Region
 
 
 
 
 
 
Americas
 
 
73%
 
 
 
77%
 
EMEA
 
 
21%
 
 
 
18%
 
Asia
 
 
6%
 
 
 
5%
 
Total
 
 
100%
 
 
 
100%
 
Industry Concentration Risk [Member]  
Summary of detailed information about concentration of our loans by region of borrowers
The table below presents the concentration of gross corporate loans by industry.
 
 
 
 
 
 
As of December
 
 
 
 
 
 
 
 
 
 
$ in millions
 
 
2019
 
 
 
2018
 
Corporate, gross
 
 
$46,307
 
 
 
$42,375
 
 
Industry
 
 
 
 
 
 
Consumer, Retail & Healthcare
 
 
15%
 
 
 
16%
 
Diversified Industrials
 
 
17%
 
 
 
16%
 
Financial Institutions
 
 
10%
 
 
 
11%
 
Funds
 
 
9%
 
 
 
10%
 
Natural Resources & Utilities
 
 
12%
 
 
 
11%
 
Real Estate
 
 
7%
 
 
 
6%
 
Technology, Media & Telecommunications
 
 
17%
 
 
 
18%
 
Other (including Special Purpose Vehicles)
 
 
13%
 
 
 
12%
 
Total
 
 
100%
 
 
 
100%