Line of Business Information

6 Months Ended

Jun. 30, 2021

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 182 to 183 in Note 24 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2020 Form 10-K.

The following table 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, certain employee costs, including certain severance and restructuring costs, acquisition costs and certain provisions for legal contingencies.

	Three Months Ended June 30,
	Investment Servicing						Investment Management						Other				Total
(Dollars in millions)	2021			2020			2021			2020			2021		2020		2021			2020
Servicing fees	$	1,399		$	1,272		$	—		$	—		$	—	$	—	$	1,399		$	1,272
Management fees	—			—			504			444			—		—		504			444
Foreign exchange trading services	270			312			16			13			—		—		286			325
Securities finance	106			88			3			4			—		—		109			92
Software and processing fees (1)	209			229			7			16			—		—		216			245
Total fee revenue	1,984			1,901			530			477			—		—		2,514			2,378
Net interest income	468			571			(1)			(12)			—		—		467			559
Total other income	—			—			—			—			53		—		53			—
Total revenue	2,452			2,472			529			465			53		—		3,034			2,937
Provision for credit losses	(15)			52			—			—			—		—		(15)			52
Total expenses	1,755			1,717			346			353			10		12		2,111			2,082
Income before income tax expense	$	712		$	703		$	183		$	112		$	43	$	(12)	$	938		$	803
Pre-tax margin	29		%	28		%	35		%	24		%					31		%	27		%
	Six Months Ended June 30,
	Investment Servicing						Investment Management						Other				Total
(Dollars in millions)	2021			2020			2021			2020			2021		2020		2021			2020
Servicing fees	$	2,770		$	2,559		$	—		$	—		$	—	$	—	$	2,770		$	2,559
Management fees	—			—			997			908			—		—		997			908
Foreign exchange trading services	603			746			29			23			—		—		632			769
Securities finance	201			177			7			7			—		—		208			184
Software and processing fees (1)	381			366			9			(9)			—		—		390			357
Total fee revenue	3,955			3,848			1,042			929			—		—		4,997			4,777
Net interest income	941			1,234			(7)			(11)			—		—		934			1,223
Total other income	—			2			—			—			53		—		53			2
Total revenue	4,896			5,084			1,035			918			53		—		5,984			6,002
Provision for credit losses	(24)			88			—			—			—		—		(24)			88
Total expenses	3,634			3,576			743			738			66		23		4,443			4,337
Income before income tax expense	$	1,286		$	1,420		$	292		$	180		$	(13)	$	(23)	1,565			$	1,577
Pre-tax margin	26		%	28		%	28		%	20		%					26		%	26		%

(1) Investment Management includes other revenue items that are primarily driven by equity market movements.