Line of Business Information

9 Months Ended

Sep. 30, 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 78 to 79 in Note 24 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in the 2018 Annual Financial Statements.

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 September 30,
	Investment Servicing						Investment Management						Other						Total
(Dollars in millions)	2019			2018			2019			2018			2019			2018			2019			2018
Servicing fees	$	1,272		$	1,333		$	—		$	—		$	—		$	—		$	1,272		$	1,333
Management fees	—			—			445			474			—			—			445			474
Foreign exchange trading services	249			255			35			33			—			—			284			288
Securities finance	114			128			2			—			—			—			116			128
Processing fees and other	140			87			2			8			—			—			142			95
Total fee revenue	1,775			1,803			484			515			—			—			2,259			2,318
Net interest income	649			680			(5		)	(8		)	—			—			644			672
Gains (losses) related to investment securities, net	—			(1		)	—			—			—			—			—			(1		)
Total revenue	2,424			2,482			479			507			—			—			2,903			2,989
Provision for loan losses	2			5			—			—			—			—			2			5
Total expenses	1,762			1,705			373			386			45			—			2,180			2,091
Income before income tax expense	$	660		$	772		$	106		$	121		$	(45	)	$	—		$	721		$	893
Pre-tax margin	27		%	31		%	22		%	24		%							25		%	30		%

	Nine Months Ended September 30,
	Investment Servicing						Investment Management						Other						Total
(Dollars in millions)	2019			2018			2019			2018			2019			2018			2019			2018
Servicing fees	$	3,775		$	4,135		$	—		$	—		$	—		$	—		$	3,775		$	4,135
Management fees	—			—			1,306			1,411			—			—			1,306			1,411
Foreign exchange trading services	735			810			102			97			—			—			837			907
Securities finance	353			423			7			—			—			—			360			423
Processing fees and other	483			243			18			9			—			—			501			252
Total fee revenue	5,346			5,611			1,433			1,517			—			—			6,779			7,128
Net interest income	1,951			1,991			(21		)	(17		)	—			—			1,930			1,974
Gains (losses) related to investment securities, net	(1		)	6			—			—			—			—			(1		)	6
Total revenue	7,296			7,608			1,412			1,500			—			—			8,708			9,108
Provision for loan losses	7			7			—			—			—			—			7			7
Total expenses	5,391			5,279			1,156			1,173			80			77			6,627			6,529
Income before income tax expense	$	1,898		$	2,322		$	256		$	327		$	(80	)	$	(77	)	$	2,074		$	2,572
Pre-tax margin	26		%	31		%	18		%	22		%							24		%	28		%