Line of Business Information

3 Months Ended

Mar. 31, 2018

Our operations are organized into two lines of business: Investment Servicing and Investment Management, which are defined based on products and services provided. The results of operations for these lines of business are not necessarily comparable with those of other companies, including companies in the financial services industry. For information about our two lines of business, as well as revenues, expenses and capital allocation methodologies associated with them, refer to pages 179 to 181 in Note 24 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K.

The following is a summary of our line-of-business results for the periods indicated. The "Other" column represents costs incurred that are not allocated to a specific line of business, including certain severance and restructuring costs, acquisition costs and certain provisions for legal contingencies.



	Three Months Ended March 31,
	Investment Servicing						Investment Management						Other					Total
(Dollars in millions)	2018			2017			2018			2017			2018		2017			2018			2017
Servicing fees	$	1,421		$	1,296		$	—		$	—		$	—	$	—		$	1,421		$	1,296
Management fees	—			—			472			382			—		—			472			382
Trading services	274			257			30			18			—		—			304			275
Securities finance	141			133			—			—			—		—			141			133
Processing fees and other	25			106			—			6			—		—			25			112
Total fee revenue	1,861			1,792			502			406			—		—			2,363			2,198
Net interest income	663			509			(5		)	1			—		—			658			510
Gains (losses) related to investment securities, net	(2		)	(40		)	—			—			—		—			(2		)	(40		)
Total revenue	2,522			2,261			497			407			—		—			3,019			2,668
Provision for loan losses	—			(2		)	—			—			—		—			—			(2		)
Total expenses	1,858			1,728			398			329			—		29			2,256			2,086
Income before income tax expense	$	664		$	535		$	99		$	78		$	—	$	(29	)	$	763		$	584
Pre-tax margin	26		%	24		%	20		%	19		%						25		%	22		%