Loans, Lending Commitments and Related Allowance for Credit Losses

6 Months Ended

Jun. 30, 2024

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Loans, Lending Commitments and Related Allowance for Credit Losses

Loans, Lending Commitments and Related Allowance for Credit Losses

Loans by Type

	At June 30, 2024
$ in millions	HFI Loans		HFS Loans		Total Loans
Corporate	$	6,764	$	11,134	$	17,898
Secured lending facilities	44,869		3,569		48,438
Commercial real estate	8,804		573		9,377
Residential real estate	63,161		1		63,162
Securities-based lending and Other	90,541		6		90,547
Total loans	214,139		15,283		229,422
ACL	(1,175)				(1,175)
Total loans, net	$	212,964	$	15,283	$	228,247
Loans to non-U.S. borrowers, net	$	23,523	$	5,183	$	28,706

	At December 31, 2023
$ in millions	HFI Loans		HFS Loans		Total Loans
Corporate	$	6,758	$	11,862	$	18,620
Secured lending facilities	39,498		3,161		42,659
Commercial real estate	8,678		209		8,887
Residential real estate	60,375		22		60,397
Securities-based lending and Other	89,245		1		89,246
Total loans	204,554		15,255		219,809
ACL	(1,169)				(1,169)
Total loans, net	$	203,385	$	15,255	$	218,640
Loans to non-U.S. borrowers, net	$	21,152	$	5,043	$	26,195

For additional information on the Firm’s held-for-investment and held-for-sale loan portfolios, see Note 9 to the financial statements in the 2023 Form 10-K.

Loans by Interest Rate Type

	At June 30, 2024				At December 31, 2023
$ in millions	Fixed Rate		Floating or Adjustable Rate		Fixed Rate		Floating or Adjustable Rate
Corporate	$	—	$	17,898	$	—	$	18,620
Secured lending facilities	—		48,438		—		42,659
Commercial real estate	142		9,235		141		8,746
Residential real estate	29,911		33,251		28,934		31,464
Securities-based lending and Other	23,972		66,575		23,922		65,323
Total loans, before ACL	$	54,025	$	175,397	$	52,997	$	166,812

See Note 4 for further information regarding Loans and lending commitments held at fair value. See Note 13 for details of current commitments to lend in the future.

Loans Held for Investment before Allowance by Credit Quality and Origination Year

	At June 30, 2024						At December 31, 2023
	Corporate
$ in millions	IG		NIG		Total		IG		NIG		Total
Revolving	$	2,133	$	4,256	$	6,389	$	2,350	$	3,863	$	6,213
2024	52		6		58
2023	—		50		50		—		88		88
2022	—		59		59		—		166		166
2021	15		75		90		15		89		104
2020	9		26		35		29		25		54
Prior	83		—		83		—		133		133
Total	$	2,292	$	4,472	$	6,764	$	2,394	$	4,364	$	6,758

	At June 30, 2024						At December 31, 2023
	Secured Lending Facilities
$ in millions	IG		NIG		Total		IG		NIG		Total
Revolving	$	9,271	$	25,033	$	34,304	$	9,494	$	22,240	$	31,734
2024	463		3,276		3,739
2023	1,489		1,377		2,866		1,535		1,459		2,994
2022	293		2,301		2,594		392		2,390		2,782
2021	—		323		323		—		365		365
2020	—		—		—		—		80		80
Prior	60		983		1,043		356		1,187		1,543
Total	$	11,576	$	33,293	$	44,869	$	11,777	$	27,721	$	39,498

	At June 30, 2024						At December 31, 2023
	Commercial Real Estate
$ in millions	IG		NIG		Total		IG		NIG		Total
Revolving	$	—	$	172	$	172	$	—	$	170	$	170
2024	—		1,333		1,333
2023	364		950		1,314		261		1,067		1,328
2022	383		1,744		2,127		284		1,900		2,184
2021	296		1,554		1,850		370		1,494		1,864
2020	—		747		747		—		756		756
Prior	—		1,261		1,261		195		2,181		2,376
Total	$	1,043	$	7,761	$	8,804	$	1,110	$	7,568	$	8,678

	At June 30, 2024
	Residential Real Estate
	by FICO Scores						by LTV Ratio				Total
$ in millions	≥ 740		680-739		≤ 679		≤ 80%		> 80%
Revolving	$	117	$	35	$	5	$	157	$	—	$	157
2024	4,024		724		72		4,379		441		4,820
2023	7,089		1,468		214		7,845		926		8,771
2022	10,612		2,372		380		12,311		1,053		13,364
2021	10,807		2,314		234		12,444		911		13,355
2020	6,691		1,382		100		7,752		421		8,173
Prior	11,106		3,004		411		13,466		1,055		14,521
Total	$	50,446	$	11,299	$	1,416	$	58,354	$	4,807	$	63,161

	At December 31, 2023
	Residential Real Estate
	by FICO Scores						by LTV Ratio				Total
$ in millions	≥ 740		680-739		≤ 679		≤ 80%		> 80%
Revolving	$	108	$	33	$	8	$	149	$	—	$	149
2023	7,390		1,517		230		8,168		969		9,137
2022	10,927		2,424		389		12,650		1,090		13,740
2021	11,075		2,376		239		12,763		927		13,690
2020	6,916		1,430		104		8,017		433		8,450
Prior	11,642		3,131		436		14,106		1,103		15,209
Total	$	48,058	$	10,911	$	1,406	$	55,853	$	4,522	$	60,375

	At June 30, 2024
	Securities-based Lending1		Other2
$ in millions			IG		NIG		Total
Revolving	$	71,825	$	5,814	$	1,616	$	79,255
2024	403		221		332		956
2023	1,214		635		386		2,235
2022	924		443		1,184		2,551
2021	100		166		491		757
2020	39		280		463		782
Prior	225		1,352		2,428		4,005
Total	$	74,730	$	8,911	$	6,900	$	90,541

	At December 31, 2023
	Securities-based Lending1		Other2
$ in millions			IG		NIG		Total
Revolving	$	71,474	$	5,230	$	1,362	$	78,066
2023	1,612		627		346		2,585
2022	1,128		816		804		2,748
2021	165		330		377		872
2020	—		435		414		849
Prior	215		2,096		1,814		4,125
Total	$	74,594	$	9,534	$	5,117	$	89,245

IG—Investment Grade

NIG—Non-investment Grade

1. Securities-based loans are subject to collateral maintenance provisions, and at June 30, 2024 and December 31, 2023, these loans are predominantly over-collateralized. For more information on the ACL methodology related to securities-based loans, see Note 2 to the financial statements in the 2023 Form 10-K.

2. Other loans primarily include certain loans originated in the tailored lending business within the Wealth Management business segment, which typically consist of bespoke lending arrangements provided to ultra-high worth net clients. These facilities are generally secured by eligible collateral.

Past Due Loans Held for Investment before Allowance1

$ in millions	At June 30, 2024		At December 31, 2023
Corporate	$	—	$	47
Commercial real estate	228		185
Residential real estate	165		160
Securities-based lending and Other	—		1
Total	$	393	$	393

1.As of June 30, 2024, the majority of the amounts are 90 days or more past due. As of December 31, 2023, the majority of the amounts are past due for a period of less than 90 days.

Nonaccrual Loans Held for Investment before Allowance1

$ in millions	At June 30, 2024		At December 31, 2023
Corporate	$	72	$	95
Secured lending facilities	7		87
Commercial real estate	506		426
Residential real estate	113		95
Securities-based lending and Other	286		174
Total	$	984	$	877
Nonaccrual loans without an ACL	$	70	$	86

1.There were no loans held for investment that were 90 days or more past due and still accruing as of June 30, 2024 and December 31, 2023. For further information on the Firm’s nonaccrual policy, see Note 2 to the financial statements in the 2023 Form 10-K.

See Note 2 to the financial statements in the 2023 Form 10-K for a description of the ACL calculated under the CECL methodology, including credit quality indicators, used for HFI loans.

Loan Modifications to Borrowers Experiencing Financial Difficulty

The Firm may modify the terms of certain loans for economic or legal reasons related to a borrower's financial difficulties, and these modifications include interest rate reductions, principal forgiveness, term extensions and other-than-insignificant payment delays or a combination of these aforementioned modifications. Modified loans are typically evaluated individually for allowance for credit losses.

Modified Loans Held for Investment

Period-end loans held for investment modified during the following periods1:

	Three Months Ended June 30,
	2024				2023
$ in millions	Amortized Cost		% of Total Loans2		Amortized Cost		% of Total Loans2
Term Extension
Corporate	$	70	1.0	%	$	2	—	%
Secured lending facilities	—		—	%	83		0.2	%
Commercial real estate	—		—	%	21		0.2	%
Securities-based lending and Other	98		0.1	%	30		—	%
Total	$	168	0.2	%	$	136	0.1	%
Multiple Modifications - Term Extension and Other-than-insignificant Payment Delay
Commercial real estate	$	—	—	%	$	40	0.5	%
Residential real estate	1		—	%	—		—	%
Total	$	1	—	%	$	40	0.5	%
Total Modifications	$	169	0.1	%	$	176	0.1	%

	Six Months Ended June 30,
	2024				2023
$ in millions	Amortized Cost		% of Total Loans2		Amortized Cost		% of Total Loans2
Term Extension
Corporate	$	126	1.9	%	$	23	0.3	%
Secured lending facilities	—		—	%	83		0.2	%
Commercial real estate	79		0.9	%	21		0.2	%
Securities-based lending and Other	139		0.2	%	30		—	%
Total	$	344	0.3	%	$	158	0.1	%
Other-than-insignificant Payment Delay
Commercial real estate	$	—	—	%	$	67	0.8	%
Total	$	—	—	%	$	67	0.8	%
Multiple Modifications - Term Extension and Other-than-insignificant Payment Delay
Commercial real estate	$	40	0.5	%	$	40	0.5	%
Residential real estate	1		—	%	1		—	%
Total	$	41	0.5	%	$	41	0.5	%
Total Modifications	$	385	0.2	%	$	266	0.1	%

1.Lending commitments to borrowers for which the Firm has modified terms of the receivable, during the three months ended June 30, 2024 and 2023, are $116 million and $74 million, as of June 30, 2024 and June 30, 2023, respectively. Lending commitments to borrowers for which the Firm has modified terms of the receivable, during the six months ended June 30, 2024 and 2023, are $439 million and $661 million, as of June 30, 2024 and June 30, 2023, respectively.

2.Percentage of total loans represents the percentage of modified loans to total loans held for investment by loan type.

Financial Effect of Modifications on Loans Held for Investment

	Three Months Ended June 30, 20241
	Term Extension (Months)	Other-than-insignificant Payment Delay (Months)	Principal Forgiveness ($ millions)	Interest Rate Reduction (%)
Single Modifications
Corporate	28	0	—	—	%
Securities-based lending and Other	15	0	—	—	%
Multiple Modifications - Term Extension and Interest Rate Reduction
Residential real estate	120	0	—	1	%

	Three Months Ended June 30, 20231
	Term Extension (Months)	Other-than-insignificant Payment Delay (Months)	Principal Forgiveness ($ millions)		Interest Rate Reduction (%)
Single Modifications
Corporate	51	0	$	—	—	%
Secured lending facilities	3	0	—		—	%
Commercial real estate	1	0	—		—	%
Securities-based lending and Other	26	0	—		—	%
Multiple Modifications - Term Extension and Other-than-insignificant Payment Delay
Commercial real estate	6	6	$	—	—	%

	Six Months Ended June 30, 20241
	Term Extension (Months)	Other-than-insignificant Payment Delay (Months)	Principal Forgiveness ($ millions)		Interest Rate Reduction (%)
Single Modifications
Corporate	28	0	$	—	—	%
Commercial real estate	4	0	—		—	%
Securities-based lending and Other	21	0	—		—	%
Multiple Modifications - Term Extension and Interest Rate Reduction
Residential real estate	120	0	—		1	%
Multiple Modifications - Term Extension and Other-than-insignificant Payment Delay
Commercial real estate	16	16	—		—	%

	Six Months Ended June 30, 20231
	Term Extension (Months)	Other-than-insignificant Payment Delay (Months)	Principal Forgiveness ($ millions)		Interest Rate Reduction (%)
Single Modifications
Corporate	14	0	$	—	—	%
Secured lending facilities	3	0	—		—	%
Commercial real estate	4	8	—		—	%
Residential real estate	4	0	—		—	%
Securities-based lending and Other	26	0	—		—	%
Multiple Modifications - Term Extension and Other-than-insignificant Payment Delay
Commercial real estate	7	6	—		—	%

1.In instances where more than one loan was modified, modification impact is presented on a weighted-average basis.

Past Due Loans Held for Investment Modified in the Last 12 months

	At June 30, 2024
$ in millions	30-89 Days Past Due		90+ Days Past Due		Total
Commercial real estate	67		—		67
Total	$	67	$	—	$	67

As of June 30, 2023, there were no past due loans held for investment modified during the 12 months prior. There were no loans held for investment that had been modified in the 12 months prior and subsequently defaulted during the six months ended June 30, 2024.

Provision for Credit Losses

	Three Months Ended June 30,				Six Months Ended June 30,
$ in millions	2024		2023		2024		2023
Loans	$	85	$	138	$	63	$	339
Lending commitments	(9)		23		7		56

Allowance for Credit Losses Rollforward and Allocation—Loans and Lending Commitments

	Six Months Ended June 30, 2024
$ in millions	Corporate			Secured Lending Facilities			CRE			Residential Real Estate			SBL and Other			Total
ACL—Loans
Beginning balance	$	241		$	153		$	463		$	100		$	212		$	1,169
Gross charge-offs	—			(11)			(41)			—			(2)			(54)
Recoveries	—			—			4			—			—			4
Net (charge-offs) recoveries	—			(11)			(37)			—			(2)			(50)
Provision (release)	1			2			46			(6)			20			63
Other	(1)			(1)			(3)			—			(2)			(7)
Ending balance	$	241		$	143		$	469		$	94		$	228		$	1,175
Percent of loans to total loans1	3		%	21		%	4		%	30		%	42		%	100		%
ACL—Lending commitments
Beginning balance	$	431		$	70		$	26		$	4		$	20		$	551
Provision (release)	8			—			3			—			(4)			7
Other	(5)			(1)			—			—			3			(3)
Ending balance	$	434		$	69		$	29		$	4		$	19		$	555
Total ending balance	$	675		$	212		$	498		$	98		$	247		$	1,730

	Six Months Ended June 30, 2023
$ in millions	Corporate			Secured Lending Facilities			CRE			Residential Real Estate			SBL and Other			Total
ACL—Loans
Beginning balance	$	235		$	153		$	275		$	87		$	89		$	839
Gross charge-offs	(30)			—			(69)			—			(2)			(101)
Provision (release)	50			3			178			25			83			339
Other	2			—			1			—			1			4
Ending balance	$	257		$	156		$	385		$	112		$	171		$	1,081
Percent of loans to total loans1	4		%	19		%	4		%	28		%	45		%	100		%
ACL—Lending commitments
Beginning balance	$	411		$	51		$	15		$	4		$	23		$	504
Provision (release)	35			10			7			1			3			56
Other	2			—			—			—			—			2
Ending balance	$	448		$	61		$	22		$	5		$	26		$	562
Total ending balance	$	705		$	217		$	407		$	117		$	197		$	1,643

CRE—Commercial real estate

SBL—Securities-based lending

1.Percent of loans to total loans represents loans held for investment by loan type to total loans held for investment.

The allowance for credit losses for loans and lending commitments increased for the six months ended June 30, 2024, reflecting provisions for certain specific commercial real estate loans, mainly in the office sector, modest growth in certain corporate and other loan portfolios and provisions for certain specific securities-based loans. The impact was partially offset by improvements in the macroeconomic outlook. Charge-offs in the current year period primarily related to Commercial real estate and Secured lending facilities. The base scenario used in our ACL models as of June 30, 2024 was generated using a combination of consensus economic forecasts, forward rates, and internally developed and validated models. This scenario assumes modest economic growth in 2024, followed by a gradual improvement in 2025 as well as lower credit spreads and higher interest rates relative to the prior forecast. Given the nature of our lending portfolio, the most sensitive model input is U.S. gross domestic product (“GDP”). For a further discussion of the Firm’s loans as well as the Firm’s allowance methodology, refer to Notes 2 and 9 to the financial statements in the 2023 Form 10-K.

Selected Credit Ratios

	At June 30, 2024		At December 31, 2023
ACL for loans to total HFI loans	0.5	%	0.6	%
Nonaccrual HFI loans to total HFI loans	0.5	%	0.4	%
ACL for loans to nonaccrual HFI loans	119.4	%	133.3	%

Employee Loans

$ in millions	At June 30, 2024		At December 31, 2023
Currently employed by the Firm1	$	4,191	$	4,257
No longer employed by the Firm2	95		92
Employee loans	$	4,286	$	4,349
ACL	(121)		(121)
Employee loans, net of ACL	$	4,165	$	4,228
Remaining repayment term, weighted average in years	5.7		5.8

1.These loans are predominantly current.

2.These loans are predominantly past due for a period of 90 days or more.

Employee loans are granted in conjunction with a program established primarily to recruit certain Wealth Management financial advisors, are full recourse and generally require periodic repayments, and are due in full upon termination of employment with the Firm. These loans are recorded in Customer and other receivables in the balance sheet. See Note 2 to the financial statements in the 2023 Form 10-K for a description of the CECL allowance methodology, including credit quality indicators, for employee loans.