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Line of Business Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Line of Business Information Line of Business Information
Our operations are organized into two lines of business, which represent our reportable segments: 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 Note 24 of the notes to consolidated financial statements in our 2025 Form 10-K.
Revenue and expenses are directly charged or allocated to our lines of business through management information systems. Our Chief Operating Decision Maker (CODM) is the Chief Executive Officer. The line of business results are regularly provided to the CODM to evaluate the performance of each line of business and to inform how resources are allocated between those lines of business to best achieve management’s strategic and tactical goals. Capital is allocated based on the relative risks and capital requirements inherent in each business line, along with management judgment. Capital allocations may not be representative of the capital that might be required if these lines of business were separate business entities.
The following table summarizes our line of business results for the periods indicated. The “Other” columns presented in the below tables, represent amounts that are not allocated to our two lines of business.
Three Months Ended March 31,
Investment
Servicing		Investment
Management		OtherTotal
(Dollars in millions)20262025202620252026202520262025
Revenue:
Servicing fees$1,409 $1,275 $— $— $— $— $1,409 $1,275 
Management fees(1)
— — 724 587 — — 724 587 
Foreign exchange trading services(1)
432 337 3 — — — 435 337 
Securities finance110 108 6 6 — — 116 114 
Software services(1)
169 158 — — — — 169 158 
Other fee revenue(1)
102 101 5 (2)— — 107 99 
Total fee revenue2,222 1,979 738 591 — — 2,960 2,570 
Net interest income832 709 3 5 — — 835 714 
Total other income1 — — — — — 1 — 
Total revenue3,055 2,688 741 596 — — 3,796 3,284 
Provision for credit losses16 12 — — — — 16 12 
Expenses:
Compensation and employee benefits1,187 1,103 175 159 79 — 1,441 1,262 
Information systems and communications558 477 29 20 50 — 637 497 
Transaction processing services230 216 53 42 — — 283 258 
Other214 223 235 210 1 — 450 433 
Total expenses2,189 2,019 492 431 130 — 2,811 2,450 
Income before income tax expense$850 $657 $249 $165 $(130)$— $969 $822 
Pre-tax margin28 %24 %34 %28 %26 %25 %
Average assets (in billions)$347.8 $333.9 $3.9 $3.4 $351.7 $337.3 
(1) In the first quarter of 2026, revenue related to distribution and marketing activities was reclassified from foreign exchange trading services to management fees. Additionally, lending related and other fees, previously recognized within software and processing fees, was reclassified to other fee revenue, and the software and processing fees caption has been changed to software services. Prior-period amounts have been reclassified to conform to the current presentation. These reclassifications had no impact on total fee revenue, total revenue or net income, on either a consolidated or line of business basis.
The following table provides additional information about the items included in the line of business results “Other” column for the periods indicated.
Three Months Ended March 31,
Other
(Dollars in millions)20262025
Repositioning charges(1)
(89)— 
Client rescoping(2)
(41)— 
Total
$(130)$— 
(1) Repositioning charges of $89 million in the first quarter of 2026, includes $79 million of compensation and employee benefits expenses related to workforce rationalization, $1 million of occupancy costs associated with real estate footprint optimization, and $9 million associated with operating model changes reflected in information systems and communications.
(2) Client rescoping of $41 million in the first quarter of 2026 reflected in information systems and communications.