Line of Business Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Line of Business Information

Line of Business Information

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 170 to 171 in Note 24 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2019 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 September 30,
	Investment Servicing						Investment Management						Other				Total
(Dollars in millions)	2020			2019			2020			2019			2020		2019		2020			2019
Servicing fees	$	1,301		$	1,272		$	—		$	—		$	—	$	—	$	1,301		$	1,272
Management fees	—			—			455			445			—		—		455			445
Foreign exchange trading services	252			249			42			35			—		—		294			284
Securities finance	81			114			3			2			—		—		84			116
Software and processing fees	162			140			10			2			—		—		172			142
Total fee revenue	1,796			1,775			510			484			—		—		2,306			2,259
Net interest income	482			649			(4)			(5)			—		—		478			644
Total revenue	2,278			2,424			506			479			—		—		2,784			2,903
Provision for loan losses	—			2			—			—			—		—		—			2
Total expenses	1,739			1,762			358			373			6		45		2,103			2,180
Income before income tax expense	$	539		$	660		$	148		$	106		$	(6)	$	(45)	$	681		$	721
Pre-tax margin	24		%	27		%	29		%	22		%					24		%	25		%

	Nine Months Ended September 30,
	Investment Servicing						Investment Management						Other				Total
(Dollars in millions)	2020			2019			2020			2019			2020		2019		2020			2019
Servicing fees	$	3,860		$	3,775		$	—		$	—		$	—	$	—	$	3,860		$	3,775
Management fees	—			—			1,329			1,306			—		—		1,329			1,306
Foreign exchange trading services	998			735			99			102			—		—		1,097			837
Securities finance	258			353			10			7			—		—		268			360
Software and processing fees	528			483			1			18			—		—		529			501
Total fee revenue	5,644			5,346			1,439			1,433			—		—		7,083			6,779
Net interest income	1,716			1,951			(15)			(21)			—		—		1,701			1,930
Total other income	2			(1)			—			—			—		—		2			(1)
Total revenue	7,362			7,296			1,424			1,412			—		—		8,786			8,708
Provision for credit losses	88			7			—			—			—		—		88			7
Total expenses	5,315			5,391			1,096			1,156			29		80		6,440			6,627
Income before income tax expense	$	1,959		$	1,898		$	328		$	256		$	(29)	$	(80)	$	2,258		$	2,074
Pre-tax margin	27		%	26		%	23		%	18		%					26		%	24		%