Line of Business Information

3 Months Ended

Mar. 31, 2019

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 175 to 176 in Note 24 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2018 Form 10-K.

The following is a summary of our line of business results for the periods indicated. The "Other" columns represent 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)	2019			2018			2019			2018			2019			2018		2019			2018
Servicing fees	$	1,251		$	1,421		$	—		$	—		$	—		$	—	$	1,251		$	1,421
Management fees	—			—			420			472			—			—		420			472
Foreign exchange trading services	246			274			34			30			—			—		280			304
Securities finance	117			141			1			—			—			—		118			141
Processing fees and other	180			77			11			—			—			—		191			77
Total fee revenue	1,794			1,913			466			502			—			—		2,260			2,415
Net interest income	679			648			(6		)	(5		)	—			—		673			643
Gains (losses) related to investment securities, net	(1		)	(2		)	—			—			—			—		(1		)	(2		)
Total revenue	2,472			2,559			460			497			—			—		2,932			3,056
Total expenses	1,864			1,870			406			398			23			—		2,293			2,268
Income before income tax expense	$	604		$	689		$	54		$	99		$	(23	)	$	—	$	635		$	788
Pre-tax margin	24		%	27		%	12		%	20		%						22		%	26		%