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As Of Filer Filing For·On·As Docs:Size 2/26/21 Morgan Stanley 10-K 12/31/20 225:50M |
Document/Exhibit Description Pages Size 1: 10-K Annual Report HTML 5.50M 2: EX-4.1 Instrument Defining the Rights of Security Holders HTML 208K 5: EX-10.19 Material Contract HTML 112K 6: EX-10.24 Material Contract HTML 107K 3: EX-10.3 Material Contract HTML 73K 7: EX-10.31 Material Contract HTML 201K 4: EX-10.6 Material Contract HTML 75K 8: EX-21 Subsidiaries List HTML 65K 9: EX-22 Published Report re: Matters Submitted to a Vote HTML 62K of Security Holders 10: EX-23.1 Consent of Expert or Counsel HTML 68K 11: EX-31.1 Certification -- §302 - SOA'02 HTML 65K 12: EX-31.2 Certification -- §302 - SOA'02 HTML 65K 13: EX-32.1 Certification -- §906 - SOA'02 HTML 62K 14: EX-32.2 Certification -- §906 - SOA'02 HTML 62K 21: R1 Cover Page HTML 149K 22: R2 Consolidated Income Statements HTML 173K 23: R3 Consolidated Comprehensive Income Statements HTML 99K 24: R4 Consolidated Balance Sheets HTML 162K 25: R5 Consolidated Balance Sheets (Parenthetical) HTML 93K 26: R6 Consolidated Statements of Changes in Total Equity HTML 136K 27: R7 Consolidated Cash Flow Statements HTML 162K 28: R8 Introduction and Basis of Presentation HTML 76K 29: R9 Significant Accounting Policies HTML 170K 30: R10 Acquisitions HTML 85K 31: R11 Cash and Cash Equivalents HTML 71K 32: R12 Fair Values HTML 806K 33: R13 Fair Value Option HTML 114K 34: R14 Derivative Instruments and Hedging Activities HTML 421K 35: R15 Investment Securities HTML 307K 36: R16 Collateralized Transactions HTML 186K 37: R17 Loans, Lending Commitments and Related Allowance HTML 354K for Credit Losses 38: R18 Goodwill and Intangible Assets HTML 123K 39: R19 Other Assets - Equity Method Investments and HTML 110K Leases 40: R20 Deposits HTML 78K 41: R21 Borrowings and Other Secured Financings HTML 174K 42: R22 Commitments, Guarantees and Contingencies HTML 176K 43: R23 Variable Interest Entities and Securitization HTML 287K Activities 44: R24 Regulatory Requirements HTML 203K 45: R25 Total Equity HTML 328K 46: R26 Interest Income and Interest Expense HTML 90K 47: R27 Deferred Compensation Plans and Carried Interest HTML 140K Compensation 48: R28 Employee Benefit Plans HTML 227K 49: R29 Income Taxes HTML 149K 50: R30 Segment, Geographic and Revenue Information HTML 275K 51: R31 Parent Company HTML 196K 52: R32 Quarterly Results (Unaudited) HTML 136K 53: R33 Significant Accounting Policies (Policies) HTML 227K 54: R34 Significant Accounting Policies (Tables) HTML 67K 55: R35 Acquisitions (Tables) HTML 85K 56: R36 Cash and Cash Equivalents (Tables) HTML 69K 57: R37 Fair Values (Tables) HTML 975K 58: R38 Fair Value Option (Tables) HTML 108K 59: R39 Derivative Instruments and Hedging Activities HTML 425K (Tables) 60: R40 Investment Securities (Tables) HTML 310K 61: R41 Collateralized Transactions (Tables) HTML 192K 62: R42 Loans, Lending Commitments and Related Allowance HTML 353K for Credit Losses (Tables) 63: R43 Goodwill and Intangible Assets (Tables) HTML 127K 64: R44 Other Assets - Equity Method Investments and HTML 117K Leases (Tables) 65: R45 Deposits (Tables) HTML 79K 66: R46 Borrowings and Other Secured Financings (Tables) HTML 180K 67: R47 Commitments, Guarantees and Contingencies (Tables) HTML 141K 68: R48 Variable Interest Entities and Securitization HTML 277K Activities (Tables) 69: R49 Regulatory Requirements (Tables) HTML 199K 70: R50 Total Equity (Tables) HTML 383K 71: R51 Interest Income and Interest Expense (Tables) HTML 91K 72: R52 Deferred Compensation Plans and Carried Interest HTML 157K Compensation (Tables) 73: R53 Employee Benefit Plans (Tables) HTML 232K 74: R54 Income Taxes (Tables) HTML 155K 75: R55 Segment, Geographic and Revenue Information HTML 284K (Tables) 76: R56 Parent Company (Tables) HTML 196K 77: R57 Quarterly Results (Unaudited) (Tables) HTML 136K 78: R58 Significant Accounting Policies - Narrative HTML 134K (Details) 79: R59 Acquisitions - Narrative (Details) HTML 82K 80: R60 Acquisitions - Purchase Price Allocation (Details) HTML 110K 81: R61 Acquisitions - Proforma Combined Financial HTML 67K Information (Details) 82: R62 Cash and Cash Equivalents - Summary (Details) HTML 72K 83: R63 Fair Values - Assets and Liabilities Measured at HTML 244K Fair Value on a Recurring Basis (Details) 84: R64 Fair Values - Detail of Loans and Lending HTML 82K Commitments at Fair Value and Unsettled Fair Value of Futures Contracts (Details) 85: R65 Fair Values - Activity of Level 3 Assets and HTML 204K Liabilities Measured at Fair Value on a Recurring Basis (Details) 86: R66 Fair Values - Valuation Techniques and Sensitivity HTML 378K of Unobservable Inputs Used in Level 3 Fair Value Measurements (Details) 87: R67 Fair Values - Fund Interests Measured Based on Net HTML 84K Asset Value (Details) 88: R68 Fair Values - Assets and Liabilities Measured at HTML 105K Fair Value on a Nonrecurring Basis (Details) 89: R69 Fair Values - Financial Instruments Not Measured HTML 133K at Fair Value (Details) 90: R70 Fair Value Option - Borrowings Measured at Fair HTML 76K Value on a Recurring Basis (Details) 91: R71 Fair Value Option - Net Revenues from Borrowings HTML 69K under the Fair Value Option (Details) 92: R72 Fair Value Option - Gains (Losses) Due to Changes HTML 84K in Instrument-Specific Credit Risk (Details) 93: R73 Fair Value Option - Difference Between Contractual HTML 67K Principal and Fair Value (Details) 94: R74 Fair Value Option - Fair Value Loans on Nonaccrual HTML 65K Status (Details) 95: R75 Derivative Instruments and Hedging Activities - HTML 200K Fair Values of Derivative Contracts (Details) 96: R76 Derivative Instruments and Hedging Activities - HTML 131K Notionals of Derivative Contracts (Details) 97: R77 Derivative Instruments and Hedging Activities - HTML 102K Gains (Losses) on Accounting Hedges and Fair Value Hedges (Details) 98: R78 Derivative Instruments and Hedging Activities - HTML 75K Credit Risk-Related Contingencies (Details) 99: R79 Derivative Instruments and Hedging Activities - HTML 124K Maximum Potential Payout/Notional of Credit Protection Sold (Details) 100: R80 Derivative Instruments and Hedging Activities - HTML 79K Fair Value Asset/(Liability) of Credit Protection Sold (Details) 101: R81 Derivative Instruments and Hedging Activities - HTML 75K Protection Purchased with CDS (Details) 102: R82 Investment Securities - AFS and HTM Securities HTML 135K (Details) 103: R83 Investment Securities - Narrative (Details) HTML 71K 104: R84 Investment Securities - Investment Securities in HTML 113K an Unrealized Loss Position (Details) 105: R85 Investment Securities - Investment Securities by HTML 223K Contractual Maturity (Details) 106: R86 Investment Securities - Gross Realized Gains and HTML 67K Losses on Sales of AFS Securities (Details) 107: R87 Collateralized Transactions - Offsetting of HTML 130K Certain Collateralized Transactions (Details) 108: R88 Collateralized Transactions - Gross Secured HTML 106K Financing Balances (Details) 109: R89 Collateralized Transactions - Assets Loaned or HTML 68K Pledged (Details) 110: R90 Collateralized Transactions - Collateral Received HTML 65K (Details) 111: R91 Collateralized Transactions - Securities HTML 63K Segregated for Regulatory Purposes (Details) 112: R92 Collateralized Transactions - Concentration Based HTML 70K on the Firm's Total Assets (Details) 113: R93 Collateralized Transactions - Customer Margin and HTML 63K Other Lending (Details) 114: R94 Loans, Lending Commitments and Related Allowance HTML 113K for Credit Losses - Loans by Type (Details) 115: R95 Loans, Lending Commitments and Related Allowance HTML 158K for Credit Losses - Loans Held for Investment before Allowance by Origination Year (Details) 116: R96 Loans, Lending Commitments and Related Allowance HTML 98K for Credit Losses - Past Due Status of Loans Held for Investment before Allowance (Details) 117: R97 Loans, Lending Commitments and Related Allowance HTML 75K for Credit Losses - Nonaccrual Loans Held for Investment before Allowance (Details) 118: R98 Loans, Lending Commitments and Related Allowance HTML 67K for Credit Losses - Troubled Debt Restructurings (Details) 119: R99 Loans, Lending Commitments and Related Allowance HTML 126K for Credit Losses - Allowance for Credit Losses Rollforward - Loans and Lending Commitments (Details) 120: R100 Loans, Lending Commitments and Related Allowance HTML 89K for Credit Losses - Employee Loans (Details) 121: R101 Goodwill and Intangible Assets - Goodwill HTML 84K Rollforward (Details) 122: R102 Goodwill and Intangible Assets - Net Amortizable HTML 84K Intangible Assets Rollforward (Details) 123: R103 Goodwill and Intangible Assets - Gross Amortizable HTML 78K Intangible Assets by Type (Details) 124: R104 Other Assets - Equity Method Investments and HTML 72K Leases - Equity Method Investments (Details) 125: R105 Other Assets - Equity Method Investments and HTML 67K Leases - Investees (Details) 126: R106 Other Assets - Equity Method Investments and HTML 71K Leases - Narrative (Details) 127: R107 Other Assets - Equity Method Investments and HTML 76K Leases - Balance Sheet Amounts Related to Leases (Details) 128: R108 Other Assets - Equity Method Investments and HTML 86K Leases - Lease Liabilities (Details) 129: R109 Other Assets - Equity Method Investments and HTML 70K Leases - Lease Costs (Details) 130: R110 Other Assets - Equity Method Investments and HTML 66K Leases - Cash Flows Statement Supplemental Information (Details) 131: R111 Other Assets - Equity Method Investments and HTML 63K Leases - Rent Expense (Details) 132: R112 Deposits - Summary (Details) HTML 71K 133: R113 Deposits - Time Deposit Maturities (Details) HTML 76K 134: R114 Borrowings and Other Secured Financings - HTML 116K Maturities and Terms of Borrowings (Details) 135: R115 Borrowings and Other Secured Financings - HTML 72K Borrowings with Maturities Greater than One Year (Details) 136: R116 Borrowings and Other Secured Financings - Senior HTML 66K Debt Subject to Put Options or Liquidity Obligations (Details) 137: R117 Borrowings and Other Secured Financings - HTML 64K Subordinated Debt (Details) 138: R118 Borrowings and Other Secured Financings - Rates HTML 64K for Long-Term Borrowings (Details) 139: R119 Borrowings and Other Secured Financings - Other HTML 69K Secured Financings (Details) 140: R120 Borrowings and Other Secured Financings - HTML 103K Maturities and Terms of Secured Financings (Details) 141: R121 Borrowings and Other Secured Financings - Failed HTML 78K Sales by Maturity (Details) 142: R122 Commitments, Guarantees and Contingencies - HTML 103K Commitments (Details) 143: R123 Commitments, Guarantees and Contingencies - HTML 137K Obligations under Guarantee Arrangements (Details) 144: R124 Commitments, Guarantees and Contingencies - Legal HTML 63K Expenses (Details) 145: R125 Commitments, Guarantees and Contingencies - HTML 90K Narrative (Details) 146: R126 Variable Interest Entities and Securitization HTML 80K Activities - Assets and Liabilities by Type of Activity (Details) 147: R127 Variable Interest Entities and Securitization HTML 94K Activities - Assets and Liabilities by Balance Sheet Caption (Details) 148: R128 Variable Interest Entities and Securitization HTML 135K Activities - Non-Consolidated VIEs (Details) 149: R129 Variable Interest Entities and Securitization HTML 85K Activities - Mortgage and Asset Backed Securitization Assets (Details) 150: R130 Variable Interest Entities and Securitization HTML 104K Activities - Transfers of Assets with Continuing Involvement (Details) 151: R131 Variable Interest Entities and Securitization HTML 90K Activities - Fair Value of Transfers of Assets with Continuing Involvement (Details) 152: R132 Variable Interest Entities and Securitization HTML 72K Activities - Proceeds from New Securitization Transactions and Sales of Loans (Details) 153: R133 Variable Interest Entities and Securitization HTML 77K Activities - Assets Sold with Retained Exposure (Details) 154: R134 Regulatory Requirements - Risk-Based Regulatory HTML 109K Capital Ratio Requirements (Details) 155: R135 Regulatory Requirements - Narrative (Details) HTML 64K 156: R136 Regulatory Requirements - The Firm's Regulatory HTML 98K Capital and Capital Ratios (Details) 157: R137 Regulatory Requirements - U.S. Bank Subsidiaries' HTML 124K Regulatory Capital and Capital Ratios (Details) 158: R138 Regulatory Requirements - U.S. Broker-Dealer HTML 66K Regulatory Capital Requirements (Details) 159: R139 Regulatory Requirements - Restrictions on Payments HTML 63K (Details) 160: R140 Total Equity - Preferred Stock Outstanding HTML 98K (Details) 161: R141 Total Equity - Narrative (Details) HTML 76K 162: R142 Total Equity - Preferred Stock Issuance HTML 101K Description (Details) 163: R143 Total Equity - Rollforward of Common Stock HTML 72K Outstanding (Details) 164: R144 Total Equity - Share Repurchases (Details) HTML 64K 165: R145 Total Equity - Reconciliation of Common Shares HTML 71K Outstanding for Basic and Diluted EPS (Details) 166: R146 Total Equity - Dividends (Details) HTML 117K 167: R147 Total Equity - Cumulative Adjustments to Retained HTML 94K Earnings Related to the Adoption of Accounting Updates (Details) 168: R148 Total Equity - Accumulated Other Comprehensive HTML 101K Income (Loss) (Details) 169: R149 Total Equity - Components of Period Changes in OCI HTML 143K (Details) 170: R150 Total Equity - Cumulative Foreign Currency HTML 70K Translation Adjustments (Details) 171: R151 Interest Income and Interest Expense - Summary HTML 94K (Details) 172: R152 Interest Income and Interest Expense - Accrued HTML 65K Interest (Details) 173: R153 Deferred Compensation Plans and Carried Interest HTML 71K Compensation - Stock-based Compensation Plans (Details) 174: R154 Deferred Compensation Plans and Carried Interest HTML 63K Compensation - Tax Benefit Related to Stock-Based Compensation Expense (Details) 175: R155 Deferred Compensation Plans and Carried Interest HTML 70K Compensation - Unrecognized Compensation Cost Related to Stock-Based Awards Granted (Details) 176: R156 Deferred Compensation Plans and Carried Interest HTML 63K Compensation - Common Shares Available for Future Awards under Stock-Based Compensation Plans (Details) 177: R157 Deferred Compensation Plans and Carried Interest HTML 98K Compensation - Vested and Unvested RSU Activity (Details) 178: R158 Deferred Compensation Plans and Carried Interest HTML 86K Compensation - Unvested RSU Activity (Details) 179: R159 Deferred Compensation Plans and Carried Interest HTML 67K Compensation - Fair Value of RSU Activity (Details) 180: R160 Deferred Compensation Plans and Carried Interest HTML 73K Compensation - Narrative (Details) 181: R161 Deferred Compensation Plans and Carried Interest HTML 69K Compensation - PSU Fair Value on Award Date (Details) 182: R162 Deferred Compensation Plans and Carried Interest HTML 75K Compensation - Monte Carlo Simulation Assumptions (Details) 183: R163 Deferred Compensation Plans and Carried Interest HTML 70K Compensation - Deferred Cash-Based Compensation Expense (Details) 184: R164 Deferred Compensation Plans and Carried Interest HTML 63K Compensation - Carried Interest Compensation Expense (Details) 185: R165 Employee Benefit Plans - Net Periodic Benefit HTML 82K Expense (Income) (Details) 186: R166 Employee Benefit Plans - Rollforward of Pre-tax HTML 82K AOCI (Details) 187: R167 Employee Benefit Plans - Weighted Average HTML 70K Assumptions Used to Determine Net Periodic Benefit Expense (Income) (Details) 188: R168 Employee Benefit Plans - Rollforward of the HTML 118K Benefit Obligation and Fair Value of Plan Assets (Details) 189: R169 Employee Benefit Plans - Accumulated Benefit HTML 65K Obligation (Details) 190: R170 Employee Benefit Plans - Pension Plans with HTML 70K Benefit Obligations in Excess of the Fair Value of Plan Assets (Details) 191: R171 Employee Benefit Plans - Weighted Average HTML 67K Assumptions Used to Determine Benefit Obligation (Details) 192: R172 Employee Benefit Plans - Fair Value of Plan Assets HTML 143K (Details) 193: R173 Employee Benefit Plans - Rollforward of Level 3 HTML 74K Plan Assets (Details) 194: R174 Employee Benefit Plans - Narrative (Details) HTML 75K 195: R175 Employee Benefit Plans - Expected Future Benefit HTML 75K Payments (Details) 196: R176 Employee Benefit Plans - 401(k) and Defined HTML 67K Contribution Pension Plans (Details) 197: R177 Income Taxes - Components of Provision for HTML 114K (Benefit from) Income Taxes (Details) 198: R178 Income Taxes - Effective Income Tax Rate (Details) HTML 79K 199: R179 Income Taxes - Narrative (Details) HTML 63K 200: R180 Income Taxes - Deferred Tax Assets and Liabilities HTML 89K (Details) 201: R181 Income Taxes - Rollforward of Unrecognized Tax HTML 80K Benefits (Details) 202: R182 Income Taxes - Interest Expense (Benefit), Net of HTML 65K Federal and State Income Tax Benefits (Details) 203: R183 Segment, Geographic and Revenue Information - HTML 200K Selected Financial Information by Business Segment (Details) 204: R184 Segment, Geographic and Revenue Information - HTML 76K Institutional Securities - Investment Banking Revenues (Details) 205: R185 Segment, Geographic and Revenue Information - HTML 75K Trading Revenues by Product Type (Details) 206: R186 Segment, Geographic and Revenue Information - HTML 63K Investment Management Investments Revenues - Net Unrealized Carried Interest (Details) 207: R187 Segment, Geographic and Revenue Information - HTML 63K Investment Management Asset Management Revenues - Reduction of Fees due to Fee Waivers (Details) 208: R188 Segment, Geographic and Revenue Information - Net HTML 75K Revenues by Region (Details) 209: R189 Segment, Geographic and Revenue Information - HTML 74K Income from Continuing Operations before Income Tax Expense (Benefit) (Details) 210: R190 Segment, Geographic and Revenue Information - Net HTML 71K Discrete Tax Provisions (Benefits) by Segment (Details) 211: R191 Segment, Geographic and Revenue Information - HTML 63K Revenue Recognized from Prior Services (Details) 212: R192 Segment, Geographic and Revenue Information - HTML 63K Receivables from Contracts with Customers (Details) 213: R193 Segment, Geographic and Revenue Information - HTML 72K Assets by Business Segment (Details) 214: R194 Segment, Geographic and Revenue Information - HTML 72K Assets by Region (Details) 215: R195 Parent Company - Condensed Income Statements and HTML 154K Comprehensive Income Statements (Details) 216: R196 Parent Company - Condensed Balance Sheets HTML 179K (Details) 217: R197 Parent Company - Condensed Cash Flow Statements HTML 138K (Details) 218: R198 Parent Company - Narrative (Details) HTML 64K 219: R199 Parent Company - Parent Company's Borrowings with HTML 72K Original Maturities Greater than One Year (Details) 220: R200 Parent Company - Guarantees (Details) HTML 68K 221: R201 Quarterly Results (Unaudited) - Summary (Details) HTML 151K 223: XML IDEA XML File -- Filing Summary XML 442K 20: XML XBRL Instance -- ms-20201231_htm XML 16.97M 222: EXCEL IDEA Workbook of Financial Reports XLSX 384K 16: EX-101.CAL XBRL Calculations -- ms-20201231_cal XML 680K 17: EX-101.DEF XBRL Definitions -- ms-20201231_def XML 2.75M 18: EX-101.LAB XBRL Labels -- ms-20201231_lab XML 4.98M 19: EX-101.PRE XBRL Presentations -- ms-20201231_pre XML 3.57M 15: EX-101.SCH XBRL Schema -- ms-20201231 XSD 625K 224: JSON XBRL Instance as JSON Data -- MetaLinks 1,061± 1.70M 225: ZIP XBRL Zipped Folder -- 0000895421-21-000286-xbrl Zip 1.83M
ms-20201231 |
2020 Quarter | ||||||||||||||
$ in millions, except per share data | First | Second | Third | Fourth1, 2 | ||||||||||
Total non-interest revenues | $ | 8,131 | $ | 11,814 | $ | 10,171 | $ | 11,769 | ||||||
Net interest | 1,356 | 1,600 | 1,486 | 1,871 | ||||||||||
Net revenues | 9,487 | 13,414 | 11,657 | 13,640 | ||||||||||
Total non-interest expenses | 7,341 | 9,059 | 8,170 | 9,210 | ||||||||||
Income
from continuing operations before income taxes | 2,146 | 4,355 | 3,487 | 4,430 | ||||||||||
Provision for income taxes | 366 | 1,119 | 736 | 1,018 | ||||||||||
Net income | 1,780 | 3,236 | 2,751 | 3,412 | ||||||||||
Net income applicable to noncontrolling interests | 82 | 40 | 34 | 27 | ||||||||||
Net
income applicable to Morgan Stanley | $ | 1,698 | $ | 3,196 | $ | 2,717 | $ | 3,385 | ||||||
Preferred stock dividends and other | 108 | 149 | 120 | 119 | ||||||||||
Earnings
applicable to Morgan Stanley common shareholders | $ | 1,590 | $ | 3,047 | $ | 2,597 | $ | 3,266 | ||||||
Earnings (loss) per common share4: | ||||||||||||||
Basic | $ | 1.02 | $ | 1.98 | $ | 1.68 | $ | 1.84 | ||||||
Diluted | $ | 1.01 | $ | 1.96 | $ | 1.66 | $ | 1.81 | ||||||
Dividends
declared per common share | $ | 0.35 | $ | 0.35 | $ | 0.35 | $ | 0.35 | ||||||
Book value per common share | $ | 49.09 | $ | 49.57 | $ | 50.67 | $ | 51.13 |
2019 Quarter | ||||||||||||||
$ in millions, except per share data | First | Second | Third | Fourth1, 2,3 | ||||||||||
Total non-interest revenues | $ | 9,272 | $ | 9,215 | $ | 8,814 | $ | 9,424 | ||||||
Net interest | 1,014 | 1,029 | 1,218 | 1,433 | ||||||||||
Net revenues | 10,286 | 10,244 | 10,032 | 10,857 | ||||||||||
Total non-interest expenses | 7,331 | 7,341 | 7,322 | 8,124 | ||||||||||
Income from continuing operations before income taxes | 2,955 | 2,903 | 2,710 | 2,733 | ||||||||||
Provision for income taxes | 487 | 657 | 492 | 428 | ||||||||||
Net income | 2,468 | 2,246 | 2,218 | 2,305 | ||||||||||
Net income applicable to noncontrolling interests | 39 | 45 | 45 | 66 | ||||||||||
Net
income applicable to Morgan Stanley | $ | 2,429 | $ | 2,201 | $ | 2,173 | $ | 2,239 | ||||||
Preferred stock dividends and other | 93 | 170 | 113 | 154 | ||||||||||
Earnings applicable to Morgan
Stanley common shareholders | $ | 2,336 | $ | 2,031 | $ | 2,060 | $ | 2,085 | ||||||
Earnings (loss) per common share4: | ||||||||||||||
Basic | $ | 1.41 | $ | 1.24 | $ | 1.28 | $ | 1.33 | ||||||
Diluted | $ | 1.39 | $ | 1.23 | $ | 1.27 | $ | 1.30 | ||||||
Dividends
declared per common share | $ | 0.30 | $ | 0.30 | $ | 0.35 | $ | 0.35 | ||||||
Book value per common share | $ | 42.83 | $ | 44.13 | $ | 45.49 | $ | 45.82 |
2020 Quarter | ||||||||||||||
$ in millions, except per share data | First | Second | Third | Fourth1, 2 | ||||||||||
Total non-interest revenues | $ | 8,131 | $ | 11,814 | $ | 10,171 | $ | 11,769 | ||||||
Net interest | 1,356 | 1,600 | 1,486 | 1,871 | ||||||||||
Net revenues | 9,487 | 13,414 | 11,657 | 13,640 | ||||||||||
Total non-interest expenses | 7,341 | 9,059 | 8,170 | 9,210 | ||||||||||
Income
from continuing operations before income taxes | 2,146 | 4,355 | 3,487 | 4,430 | ||||||||||
Provision for income taxes | 366 | 1,119 | 736 | 1,018 | ||||||||||
Net income | 1,780 | 3,236 | 2,751 | 3,412 | ||||||||||
Net income applicable to noncontrolling interests | 82 | 40 | 34 | 27 | ||||||||||
Net
income applicable to Morgan Stanley | $ | 1,698 | $ | 3,196 | $ | 2,717 | $ | 3,385 | ||||||
Preferred stock dividends and other | 108 | 149 | 120 | 119 | ||||||||||
Earnings
applicable to Morgan Stanley common shareholders | $ | 1,590 | $ | 3,047 | $ | 2,597 | $ | 3,266 | ||||||
Earnings (loss) per common share4: | ||||||||||||||
Basic | $ | 1.02 | $ | 1.98 | $ | 1.68 | $ | 1.84 | ||||||
Diluted | $ | 1.01 | $ | 1.96 | $ | 1.66 | $ | 1.81 | ||||||
Dividends
declared per common share | $ | 0.35 | $ | 0.35 | $ | 0.35 | $ | 0.35 | ||||||
Book value per common share | $ | 49.09 | $ | 49.57 | $ | 50.67 | $ | 51.13 |
2019 Quarter | ||||||||||||||
$ in millions, except per share data | First | Second | Third | Fourth1, 2,3 | ||||||||||
Total non-interest revenues | $ | 9,272 | $ | 9,215 | $ | 8,814 | $ | 9,424 | ||||||
Net interest | 1,014 | 1,029 | 1,218 | 1,433 | ||||||||||
Net revenues | 10,286 | 10,244 | 10,032 | 10,857 | ||||||||||
Total non-interest expenses | 7,331 | 7,341 | 7,322 | 8,124 | ||||||||||
Income from continuing operations before income taxes | 2,955 | 2,903 | 2,710 | 2,733 | ||||||||||
Provision for income taxes | 487 | 657 | 492 | 428 | ||||||||||
Net income | 2,468 | 2,246 | 2,218 | 2,305 | ||||||||||
Net income applicable to noncontrolling interests | 39 | 45 | 45 | 66 | ||||||||||
Net
income applicable to Morgan Stanley | $ | 2,429 | $ | 2,201 | $ | 2,173 | $ | 2,239 | ||||||
Preferred stock dividends and other | 93 | 170 | 113 | 154 | ||||||||||
Earnings applicable to Morgan
Stanley common shareholders | $ | 2,336 | $ | 2,031 | $ | 2,060 | $ | 2,085 | ||||||
Earnings (loss) per common share4: | ||||||||||||||
Basic | $ | 1.41 | $ | 1.24 | $ | 1.28 | $ | 1.33 | ||||||
Diluted | $ | 1.39 | $ | 1.23 | $ | 1.27 | $ | 1.30 | ||||||
Dividends
declared per common share | $ | 0.30 | $ | 0.30 | $ | 0.35 | $ | 0.35 | ||||||
Book value per common share | $ | 42.83 | $ | 44.13 | $ | 45.49 | $ | 45.82 |
i Delaware | i 1585 Broadway | i 36-3145972 | i (212) | i 761-4000 | |||||||||||||||||||
(State or other jurisdiction of incorporation or organization) | i New York, | i NY | i 10036 | (I.R.S.
Employer Identification No.) | (Registrant’s telephone number, including area code) | ||||||||||||||||||
(Address of principal executive offices, including zip code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol(s) | Name
of exchange on which registered | ||||||
i Common Stock, $0.01 par value | i MS | i New York Stock Exchange | ||||||
Depositary Shares, each representing 1/1,000th interest in a share of Floating Rate | i MS/PA | i New York Stock Exchange | ||||||
i Non-Cumulative Preferred Stock, Series A, $0.01 par value | ||||||||
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate | i MS/PE | i New York Stock Exchange | ||||||
i Non-Cumulative Preferred Stock, Series E, $0.01 par value | ||||||||
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate | i MS/PF | i New York Stock Exchange | ||||||
i Non-Cumulative
Preferred Stock, Series F, $0.01 par value | ||||||||
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate | i MS/PI | i New York Stock Exchange | ||||||
i Non-Cumulative Preferred Stock, Series I, $0.01 par value | ||||||||
Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate | i MS/PK | i New York Stock Exchange | ||||||
i Non-Cumulative Preferred Stock, Series K, $0.01 par value | ||||||||
Depositary Shares, each representing 1/1,000th interest in a share of 4.875% | i MS/PL | i New York Stock Exchange | ||||||
i Non-Cumulative Preferred Stock, Series L, $0.01 par value | ||||||||
i Global Medium-Term Notes, Series A, Fixed Rate Step-Up Senior Notes Due 2026 | i MS/26C | i New York Stock Exchange | ||||||
of Morgan Stanley Finance LLC (and Registrant’s guarantee with respect thereto) | ||||||||
i Morgan Stanley Cushing® MLP High Income Index ETNs due March 21, 2031 | i MLPY | i NYSE Arca, Inc. |
i Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | i ☐ | Emerging growth company | i ☐ |
ANNUAL REPORT ON FORM 10-K | |||||
For the year ended December 31, 2020 |
Table of Contents | Part | Item | Page | ||||||||
I | 1 | ||||||||||
1A | |||||||||||
II | 7 | ||||||||||
7A | |||||||||||
8 | |||||||||||
Table of Contents | Part | Item | Page | ||||||||
9 | |||||||||||
9A | |||||||||||
9B | |||||||||||
I | 1B | ||||||||||
2 | |||||||||||
3 | |||||||||||
4 | |||||||||||
II | 5 | ||||||||||
III | 10 | ||||||||||
11 | |||||||||||
12 | |||||||||||
13 | |||||||||||
14 | |||||||||||
IV | 15 | ||||||||||
16 | |||||||||||
1 | December 2020 Form 10-K |
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3 | December 2020 Form 10-K |
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7 | December 2020 Form 10-K |
December 2020 Form 10-K | 8 |
9 | December 2020 Form 10-K |
Category | Metric | At December 31, 2020 | |||||||||
Employees | Employees by geography (thousands) | Americas | 48 | ||||||||
Asia Pacific | 12 | ||||||||||
EMEA | 8 | ||||||||||
Culture | Employee engagement2 | % Proud to work at Morgan Stanley | 88 | % | |||||||
Diversity and Inclusion | Global gender representation | % Female | 39 | % | |||||||
% Female officer3 | 26 | % | |||||||||
U.S. ethnic diversity representation | % Ethnically diverse4 | 30 | % | ||||||||
%
Ethnically diverse officer3 | 24 | % | |||||||||
Retention | Voluntary attrition in 2020 | % Global | 7 | % | |||||||
Tenure | Management Committee average length of service (years) | 19 | |||||||||
All employees average length of service (years) | 7 | ||||||||||
Compensation | Compensation and benefits | Total compensation and benefits expense in 2020 (millions) | $ | 20,854 |
December 2020 Form 10-K | 10 |
11 | December 2020 Form 10-K |
December 2020 Form 10-K | 12 |
13 | December 2020 Form 10-K |
December 2020 Form 10-K | 14 |
15 | December 2020 Form 10-K |
December 2020 Form 10-K | 16 |
17 | December 2020 Form 10-K |
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19 | December 2020 Form 10-K |
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21 | December 2020 Form 10-K |
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23 | December 2020 Form 10-K |
December 2020 Form 10-K | 24 |
25 | December 2020 Form 10-K |
Management's Discussion and Analysis |
December 2020 Form 10-K | 26 |
Management's Discussion and Analysis |
27 | December 2020 Form 10-K |
Management's Discussion and Analysis |
$ in millions, except per share data | 2020 | 2019 | 2018 | ||||||||
Consolidated results | |||||||||||
Net revenues | $ | 48,198 | $ | 41,419 | $ | 40,107 | |||||
Earnings applicable to Morgan Stanley common shareholders | $ | 10,500 | $ | 8,512 | $ | 8,222 | |||||
Earnings per diluted common share1 | $ | 6.46 | $ | 5.19 | $ | 4.73 |
Consolidated financial measures | |||||||||||
Expense efficiency ratio2 | 70.1 | % | 72.7 | % | 72.0 | % | |||||
Adjusted expense efficiency ratio2, 4 | 69.6 | % | 72.7 | % | 72.0 | % | |||||
ROE3 | 13.1 | % | 11.7 | % | 11.8 | % | |||||
Adjusted
ROE3, 4 | 13.3 | % | 11.7 | % | 11.8 | % | |||||
ROTCE3, 4 | 15.2 | % | 13.4 | % | 13.5 | % | |||||
Adjusted ROTCE3, 4 | 15.4 | % | 13.4 | % | 13.5 | % | |||||
Pre-tax
margin5 | 29.9 | % | 27.3 | % | 28.0 | % | |||||
Pre-tax margin by segment5 | |||||||||||
Institutional Securities | 35.3 | % | 26.9 | % | 30.4 | % | |||||
Wealth Management | 23.0 | % | 27.2 | % | 26.2 | % | |||||
Wealth
Management, adjusted4 | 24.2 | % | 27.2 | % | 26.2 | % | |||||
Investment Management | 23.3 | % | 26.2 | % | 16.9 | % |
in millions, except per share data and as noted | At December 31, 2020 | At December 31, 2019 | ||||||
Liquidity resources6 | $ | 338,623 | $ | 215,868 | ||||
Loans7 | $ | 150,597 | $ | 130,637 | ||||
Total assets | $ | 1,115,862 | $ | 895,429 | ||||
Deposits | $ | 310,782 | $ | 190,356 | ||||
Borrowings | $ | 217,079 | $ | 192,627 | ||||
Common shares outstanding | 1,810 | 1,594 | ||||||
Common shareholders' equity | $ | 92,531 | $ | 73,029 | ||||
Tangible common shareholders’ equity4 | $ | 75,916 | $ | 63,780 | ||||
Book
value per common share8 | $ | 51.13 | $ | 45.82 | ||||
Tangible book value per common share4, 8 | $ | 41.95 | $ | 40.01 | ||||
Worldwide employees9 (in thousands) | 68 | 60 |
Capital
ratios10 | ||||||||
Common Equity Tier 1 capital—Standardized | 17.4 | % | 16.4 | % | ||||
Common Equity Tier 1 capital—Advanced | 17.7 | % | 16.9 | % | ||||
Tier 1 capital—Standardized | 19.4 | % | 18.6 | % | ||||
Tier 1 capital—Advanced | 19.8 | % | 19.2 | % | ||||
SLR11 | 7.4 | % | 6.4 | % | ||||
Tier 1 leverage | 8.4 | % | 8.3 | % |
December 2020 Form 10-K | 28 |
Management's Discussion and Analysis |
$ in millions, except per share data | 2020 | 2019 | 2018 | ||||||||
Earnings applicable to Morgan Stanley common shareholders | $ | 10,500 | $ | 8,512 | $ | 8,222 | |||||
Impact of adjustments: | |||||||||||
Integration-related expenses | 231 | — | — | ||||||||
Related tax benefit | (42) | — | — | ||||||||
Adjusted earnings applicable to Morgan Stanley common shareholders—non-GAAP1 | $ | 10,689 | $ | 8,512 | $ | 8,222 | |||||
Earnings per diluted common share | $ | 6.46 | $ | 5.19 | $ | 4.73 | |||||
Impact of adjustments | 0.12 | — | — | ||||||||
Adjusted earnings per diluted common share—non-GAAP1 | $ | 6.58 | $ | 5.19 | $ | 4.73 | |||||
Expense efficiency ratio | 70.1 | % | 72.7 | % | 72.0 | % | |||||
Impact of adjustments | (0.5) | % | — | % | — | % | |||||
Adjusted expense efficiency ratio—non-GAAP1 | 69.6 | % | 72.7 | % | 72.0 | % | |||||
Wealth Management Pre-tax margin | 23.0 | % | 27.2 | % | 26.2 | % | |||||
Impact of adjustments | 1.2 | % | — | % | — | % | |||||
Adjusted Wealth Management pre-tax margin—non-GAAP1 | 24.2 | % | 27.2 | % | 26.2 | % |
At December 31, | |||||||||||
$ in millions | 2020 | 2019 | 2018 | ||||||||
Tangible equity | |||||||||||
Common shareholders' equity | $ | 92,531 | $ | 73,029 | $ | 71,726 | |||||
Less: Goodwill and net intangible assets | (16,615) | (9,249) | (8,847) | ||||||||
Tangible common shareholders' equity—non-GAAP | $ | 75,916 | $ | 63,780 | $ | 62,879 |
Average Monthly Balance | |||||||||||
$ in millions | 2020 | 2019 | 2018 | ||||||||
Tangible equity | |||||||||||
Common shareholders' equity | $ | 80,246 | $ | 72,720 | $ | 69,977 | |||||
Less: Goodwill and net intangible assets | (10,951) | (9,140) | (8,985) | ||||||||
Tangible common shareholders' equity—non-GAAP | $ | 69,295 | $ | 63,580 | $ | 60,992 |
$ in billions | 2020 | 2019 | 2018 | ||||||||
Average common equity | |||||||||||
Unadjusted—GAAP | $ | 80.2 | $ | 72.7 | $ | 70.0 | |||||
Adjusted1—Non-GAAP | 80.3 | 72.7 | 70.0 | ||||||||
ROE2 | |||||||||||
Unadjusted—GAAP | 13.1 | % | 11.7 | % | 11.8 | % | |||||
Adjusted1—Non-GAAP | 13.3 | % | 11.7 | % | 11.8 | % | |||||
Average tangible common equity—Non-GAAP | |||||||||||
Unadjusted | $ | 69.3 | $ | 63.6 | $ | 61.0 | |||||
Adjusted1 | 69.3 | 63.6 | 61.0 | ||||||||
ROTCE2—Non-GAAP | |||||||||||
Unadjusted | 15.2 | % | 13.4 | % | 13.5 | % | |||||
Adjusted1 | 15.4 | % | 13.4 | % | 13.5 | % |
29 | December 2020 Form 10-K |
Management's Discussion and Analysis |
$ in billions | 2020 | 2019 | 2018 | ||||||||
Average common equity3, 4 | |||||||||||
Institutional Securities | $ | 42.8 | $ | 40.4 | $ | 40.8 | |||||
Wealth Management | 20.8 | 18.2 | 16.8 | ||||||||
Investment Management | 2.6 | 2.5 | 2.6 | ||||||||
ROE5 | |||||||||||
Institutional Securities | 15.5 | % | 10.4 | % | 11.0 | % | |||||
Wealth Management | 15.6 | % | 19.8 | % | 20.0 | % | |||||
Investment Management | 23.3 | % | 28.9 | % | 14.2 | % | |||||
Average tangible common equity3, 4 | |||||||||||
Institutional Securities | $ | 42.3 | $ | 39.9 | $ | 40.1 | |||||
Wealth Management | 11.3 | 10.2 | 9.2 | ||||||||
Investment Management | 1.7 | 1.5 | 1.7 | ||||||||
ROTCE5 | |||||||||||
Institutional Securities | 15.7 | % | 10.5 | % | 11.2 | % | |||||
Wealth Management | 28.9 | % | 35.6 | % | 36.6 | % | |||||
Investment Management | 36.0 | % | 46.6 | % | 22.2 | % |
December 2020 Form 10-K | 30 |
Management's Discussion and Analysis |
31 | December 2020 Form 10-K |
Management's Discussion and Analysis |
December 2020 Form 10-K | 32 |
Management's Discussion and Analysis |
33 | December 2020 Form 10-K |
Management's Discussion and Analysis |
% Change | |||||||||||||||||
$ in millions | 2020 | 2019 | 2018 | 2020 | 2019 | ||||||||||||
Revenues | |||||||||||||||||
Investment banking | $ | 7,204 | $ | 5,734 | $ | 6,088 | 26 | % | (6) | % | |||||||
Trading | 13,106 | 10,318 | 11,191 | 27 | % | (8) | % | ||||||||||
Investments | 166 | 325 | 182 | (49) | % | 79 | % | ||||||||||
Commissions and fees | 2,935 | 2,484 | 2,671 | 18 | % | (7) | % | ||||||||||
Asset management | 461 | 413 | 421 | 12 | % | (2) | % | ||||||||||
Other | (214) | 632 | 535 | (134) | % | 18 | % | ||||||||||
Total
non-interest revenues | 23,658 | 19,906 | 21,088 | 19 | % | (6) | % | ||||||||||
Interest income | 5,809 | 12,193 | 9,271 | (52) | % | 32 | % | ||||||||||
Interest expense | 3,519 | 11,713 | 9,777 | (70) | % | 20 | % | ||||||||||
Net interest | 2,290 | 480 | (506) | N/M | 195 | % | |||||||||||
Net revenues | 25,948 | 20,386 | 20,582 | 27 | % | (1) | % | ||||||||||
Compensation and benefits | 8,342 | 7,433 | 6,958 | 12 | % | 7 | % | ||||||||||
Non-compensation expenses | 8,455 | 7,463 | 7,364 | 13 | % | 1 | % | ||||||||||
Total
non-interest expenses | 16,797 | 14,896 | 14,322 | 13 | % | 4 | % | ||||||||||
Income from continuing operations before income taxes | 9,151 | 5,490 | 6,260 | 67 | % | (12) | % | ||||||||||
Provision
for income taxes | 2,040 | 769 | 1,230 | 165 | % | (37) | % | ||||||||||
Income from continuing operations | 7,111 | 4,721 | 5,030 | 51 | % | (6) | % | ||||||||||
Income
(loss) from discontinued operations, net of income taxes | — | — | (6) | N/M | 100 | % | |||||||||||
Net income | 7,111 | 4,721 | 5,024 | 51 | % | (6) | % | ||||||||||
Net
income applicable to noncontrolling interests | 99 | 122 | 118 | (19) | % | 3 | % | ||||||||||
Net income applicable to Morgan Stanley | $ | 7,012 | $ | 4,599 | $ | 4,906 | 52 | % | (6) | % |
% Change | |||||||||||||||||
$ in millions | 2020 | 2019 | 2018 | 2020 | 2019 | ||||||||||||
Advisory | $ | 2,008 | $ | 2,116 | $ | 2,436 | (5) | % | (13) | % | |||||||
Underwriting: | |||||||||||||||||
Equity | 3,092 | 1,708 | 1,726 | 81 | % | (1) | % | ||||||||||
Fixed
Income | 2,104 | 1,910 | 1,926 | 10 | % | (1) | % | ||||||||||
Total Underwriting | 5,196 | 3,618 | 3,652 | 44 | % | (1) | % | ||||||||||
Total Investment banking | $ | 7,204 | $ | 5,734 | $ | 6,088 | 26 | % | (6) | % |
$ in billions | 2020 | 2019 | 2018 | ||||||||
Completed mergers and acquisitions1 | $ | 867 | $ | 826 | $ | 1,114 | |||||
Equity and equity-related offerings2, 3 | 100 | 61 | 64 | ||||||||
Fixed
income offerings2, 4 | 374 | 287 | 241 |
% Change | |||||||||||||||||
$ in millions | 2020 | 2019 | 2018 | 2020 | 2019 | ||||||||||||
Trading | $ | 13,106 | $ | 10,318 | $ | 11,191 | 27 | % | (8) | % | |||||||
Commissions and fees | 2,935 | 2,484 | 2,671 | 18 | % | (7) | % | ||||||||||
Asset management | 461 | 413 | 421 | 12 | % | (2) | % | ||||||||||
Net interest | 2,290 | 480 | (506) | N/M | 195 | % | |||||||||||
Total | $ | 18,792 | $ | 13,695 | $ | 13,777 | 37 | % | (1) | % |
December 2020 Form 10-K | 34 |
Management's Discussion and Analysis |
% Change | |||||||||||||||||
$ in millions | 2020 | 2019 | 2018 | 2020 | 2019 | ||||||||||||
Equity | $ | 9,801 | $ | 8,056 | $ | 8,976 | 22 | % | (10) | % | |||||||
Fixed income | 8,824 | 5,546 | 5,005 | 59 | % | 11 | % | ||||||||||
Other | 167 | 93 | (204) | 80 | % | 146 | % | ||||||||||
Total | $ | 18,792 | $ | 13,695 | $ | 13,777 | 37 | % | (1) | % |
2020 | ||||||||||||||
$ in millions | Trading | Fees1 | Net Interest2 | Total | ||||||||||
Financing | $ | 3,736 | $ | 439 | $ | 342 | $ | 4,517 | ||||||
Execution services | 2,882 | 2,658 | (256) | 5,284 | ||||||||||
Total Equity | $ | 6,618 | $ | 3,097 | $ | 86 | $ | 9,801 | ||||||
Total Fixed income | $ | 6,840 | $ | 299 | $ | 1,685 | $ | 8,824 |
2019 | ||||||||||||||
$ in millions | Trading | Fees1 | Net Interest2 | Total | ||||||||||
Financing | $ | 4,225 | $ | 372 | $ | (514) | $ | 4,083 | ||||||
Execution services | 1,986 | 2,202 | (215) | 3,973 | ||||||||||
Total Equity | $ | 6,211 | $ | 2,574 | $ | (729) | $ | 8,056 | ||||||
Total Fixed income | $ | 5,171 | $ | 324 | $ | 51 | $ | 5,546 |
2018 | ||||||||||||||
$ in millions | Trading | Fees1 | Net Interest2 | Total | ||||||||||
Financing | $ | 4,841 | $ | 394 | $ | (661) | $ | 4,574 | ||||||
Execution services | 2,362 | 2,376 | (336) | 4,402 | ||||||||||
Total Equity | $ | 7,203 | $ | 2,770 | $ | (997) | $ | 8,976 | ||||||
Total Fixed income | $ | 4,793 | $ | 322 | $ | (110) | $ | 5,005 |
35 | December 2020 Form 10-K |
Management's Discussion and Analysis |
December 2020 Form 10-K | 36 |
Management's Discussion and Analysis |
% Change | |||||||||||||||||
$ in millions | 2020 | 2019 | 2018 | 2020 | 2019 | ||||||||||||
Revenues | |||||||||||||||||
Investment banking | $ | 559 | $ | 509 | $ | 475 | 10 | % | 7 | % | |||||||
Trading | 844 | 734 | 279 | 15 | % | 163 | % | ||||||||||
Investments | 12 | 2 | 1 | N/M | 100 | % | |||||||||||
Commissions and fees | 2,291 | 1,726 | 1,804 | 33 | % | (4) | % | ||||||||||
Asset management | 10,955 | 10,199 | 10,158 | 7 | % | — | % | ||||||||||
Other | 372 | 345 | 248 | 8 | % | 39 | % | ||||||||||
Total non-interest revenues | 15,033 | 13,515 | 12,965 | 11 | % | 4 | % | ||||||||||
Interest income | 4,771 | 5,467 | 5,498 | (13) | % | (1) | % | ||||||||||
Interest expense | 749 | 1,245 | 1,221 | (40) | % | 2 | % | ||||||||||
Net interest | 4,022 | 4,222 | 4,277 | (5) | % | (1) | % | ||||||||||
Net revenues | 19,055 | 17,737 | 17,242 | 7 | % | 3 | % | ||||||||||
Compensation and benefits | 10,970 | 9,774 | 9,507 | 12 | % | 3 | % | ||||||||||
Non-compensation expenses | 3,698 | 3,131 | 3,214 | 18 | % | (3) | % | ||||||||||
Total non-interest expenses | 14,668 | 12,905 | 12,721 | 14 | % | 1 | % | ||||||||||
Income
from continuing operations before income taxes | 4,387 | 4,832 | 4,521 | (9) | % | 7 | % | ||||||||||
Provision for income taxes | 1,026 | 1,104 | 1,049 | (7) | % | 5 | % | ||||||||||
Net
income applicable to Morgan Stanley | $ | 3,361 | $ | 3,728 | $ | 3,472 | (10) | % | 7 | % |
At or for the Year Ended | ||||||||
December 31, | ||||||||
$ in billions | 2020 | 2019 | ||||||
Total client assets | $ | 3,999 | $ | 2,700 | ||||
Net new assets1 | $ | 175.4 | $ | 97.8 | ||||
U.S. Bank Subsidiary loans | $ | 98.1 | $ | 80.1 | ||||
Margin
and other lending2 | $ | 23.1 | $ | 9.7 | ||||
Deposits3 | $ | 306 | $ | 187 | ||||
Weighted average cost of deposits4 | 0.24% | 0.91% |
At or for the Year Ended | |||||||||||
$ in billions, except employee data and as otherwise noted | December 31, | ||||||||||
2020 | 2019 | 2018 | |||||||||
Advisor-led channel: | |||||||||||
Advisor-led client assets1 | $ | 3,167 | $ | 2,623 | $ | 2,254 | |||||
Fee-based client assets2 | $ | 1,472 | $ | 1,267 | $ | 1,046 | |||||
Fee-based
asset flows3 | $ | 77.4 | $ | 64.9 | $ | 65.9 | |||||
Fee-based client assets as a percentage of advisor-led client assets | 46% | 48% | 46% | ||||||||
Wealth Management representatives (in thousands) | 16 | 15 | 16 | ||||||||
Self-directed channel: | |||||||||||
Self-directed assets4 | $ | 832 | $ | 77 | $ | 49 | |||||
Daily average revenue trades (“DARTs”) (in thousands)5 | 280 | 3 | 3 | ||||||||
Self-directed households (in millions)6 | 6.7 | 1.6 | 1.1 | ||||||||
Workplace channel: | |||||||||||
Workplace unvested assets7 | $ | 435 | $ | 133 | $ | 13 | |||||
Number of participants (in millions)8 | 4.9 | 2.7 | 1.0 |
37 | December 2020 Form 10-K |
Management's Discussion and Analysis |
% Change | |||||||||||||||||
$ in millions | 2020 | 2019 | 2018 | 2020 | 2019 | ||||||||||||
Investment banking | $ | 559 | $ | 509 | $ | 475 | 10% | 7% | |||||||||
Trading | 844 | 734 | 279 | 15% | 163% | ||||||||||||
Commissions and fees | 2,291 | 1,726 | 1,804 | 33% | (4)% | ||||||||||||
Total | $ | 3,694 | $ | 2,969 | $ | 2,558 | 24% | 16% | |||||||||
$ in billions | At December 31, 2019 | Inflows | Outflows | Market Impact | At December 31, 2020 | ||||||||||||
Separately managed1 | $ | 322 | $ | 48 | $ | (25) | $ | 14 | $ | 359 | |||||||
Unified managed | 313 | 63 | (43) | 46 | 379 | ||||||||||||
Advisor | 155 | 33 | (28) | 17 | 177 | ||||||||||||
Portfolio
manager | 435 | 86 | (57) | 45 | 509 | ||||||||||||
Subtotal | $ | 1,225 | $ | 230 | $ | (153) | $ | 122 | $ | 1,424 | |||||||
Cash
management | 42 | 28 | (22) | — | 48 | ||||||||||||
Total fee-based client assets | $ | 1,267 | $ | 258 | $ | (175) | $ | 122 | $ | 1,472 |
$ in billions | At December 31, 2018 | Inflows | Outflows | Market Impact | At December 31, 2019 | ||||||||||||
Separately managed1 | $ | 279 | $ | 53 | $ | (19) | $ | 9 | $ | 322 | |||||||
Unified managed | 257 | 48 | (39) | 47 | 313 | ||||||||||||
Advisor | 137 | 27 | (32) | 23 | 155 | ||||||||||||
Portfolio manager | 353 | 75 | (48) | 55 | 435 | ||||||||||||
Subtotal | $ | 1,026 | $ | 203 | $ | (138) | $ | 134 | $ | 1,225 | |||||||
Cash
management | 20 | 36 | (14) | — | 42 | ||||||||||||
Total fee-based client assets | $ | 1,046 | $ | 239 | $ | (152) | $ | 134 | $ | 1,267 |
$ in billions | At December 31, 2017 | Inflows | Outflows | Market Impact | At December 31, 2018 | ||||||||||||
Separately managed1 | $ | 252 | $ | 40 | $ | (18) | $ | 5 | $ | 279 | |||||||
Unified managed | 271 | 48 | (34) | (28) | 257 | ||||||||||||
Advisor | 149 | 29 | (28) | (13) | 137 | ||||||||||||
Portfolio manager | 353 | 71 | (42) | (29) | 353 | ||||||||||||
Subtotal | $ | 1,025 | $ | 188 | $ | (122) | $ | (65) | $ | 1,026 | |||||||
Cash
management | 20 | 16 | (16) | — | 20 | ||||||||||||
Total fee-based client assets | $ | 1,045 | $ | 204 | $ | (138) | $ | (65) | $ | 1,046 |
Fee rate in bps | 2020 | 2019 | 2018 | ||||||||
Separately managed | 14 | 15 | 16 | ||||||||
Unified managed | 99 | 100 | 99 | ||||||||
Advisor | 85 | 86 | 84 | ||||||||
Portfolio manager | 94 | 95 | 95 | ||||||||
Subtotal | 73 | 74 | 76 | ||||||||
Cash management | 5 | 6 | 6 | ||||||||
Total fee-based client assets | 70 | 73 | 74 | ||||||||
December 2020 Form 10-K | 38 |
Management's Discussion and Analysis |
39 | December 2020 Form 10-K |
Management's Discussion and Analysis |
% Change | |||||||||||||||||
$ in millions | 2020 | 2019 | 2018 | 2020 | 2019 | ||||||||||||
Revenues | |||||||||||||||||
Trading | $ | (34) | $ | (8) | $ | 25 | N/M | (132) | % | ||||||||
Investments | 808 | 1,213 | 254 | (33) | % | N/M | |||||||||||
Commissions and fees | 1 | 1 | — | — | % | N/M | |||||||||||
Asset management | 3,013 | 2,629 | 2,468 | 15 | % | 7 | % | ||||||||||
Other | (39) | (46) | (30) | 15 | % | (53) | % | ||||||||||
Total non-interest revenues | 3,749 | 3,789 | 2,717 | (1) | % | 39 | % | ||||||||||
Interest income | 14 | 20 | 57 | (30) | % | (65) | % | ||||||||||
Interest expense | 29 | 46 | 28 | (37) | % | 64 | % | ||||||||||
Net interest | (15) | (26) | 29 | 42 | % | (190) | % | ||||||||||
Net revenues | 3,734 | 3,763 | 2,746 | (1) | % | 37 | % | ||||||||||
Compensation and benefits | 1,542 | 1,630 | 1,167 | (5) | % | 40 | % | ||||||||||
Non-compensation expenses | 1,322 | 1,148 | 1,115 | 15 | % | 3 | % | ||||||||||
Total non-interest expenses | 2,864 | 2,778 | 2,282 | 3 | % | 22 | % | ||||||||||
Income from continuing operations before income taxes | 870 | 985 | 464 | (12) | % | 112 | % | ||||||||||
Provision for income taxes | 171 | 193 | 73 | (11) | % | 164 | % | ||||||||||
Income from continuing operations | 699 | 792 | 391 | (12) | % | 103 | % | ||||||||||
Income
from discontinued operations, net of income taxes | — | — | 2 | N/M | (100)% | ||||||||||||
Net income | 699 | 792 | 393 | (12) | % | 102 | % | ||||||||||
Net
income applicable to noncontrolling interests | 84 | 73 | 17 | 15 | % | N/M | |||||||||||
Net income applicable to Morgan Stanley | $ | 615 | $ | 719 | $ | 376 | (14) | % | 91 | % |
December 2020 Form 10-K | 40 |
Management's Discussion and Analysis |
$ in billions | At December 31, 2019 | Inflows | Outflows | Market Impact | Other | At December 31, 2020 | ||||||||||||||
Equity | $ | 138 | $ | 87 | $ | (51) | $ | 69 | $ | (1) | $ | 242 | ||||||||
Fixed
income | 79 | 37 | (29) | 4 | 7 | 98 | ||||||||||||||
Alternative/ Other | 139 | 26 | (24) | 5 | 7 | 153 | ||||||||||||||
Long-term
AUM subtotal | 356 | 150 | (104) | 78 | 13 | 493 | ||||||||||||||
Liquidity | 196 | 1,584 | (1,493) | 1 | — | 288 | ||||||||||||||
Total AUM | $ | 552 | $ | 1,734 | $ | (1,597) | $ | 79 | $ | 13 | $ | 781 |
$ in billions | At December 31, 2018 | Inflows | Outflows | Market Impact | Other | At December 31, 2019 | ||||||||||||||
Equity | $ | 103 | $ | 39 | $ | (31) | $ | 28 | $ | (1) | $ | 138 | ||||||||
Fixed
income | 68 | 25 | (20) | 5 | 1 | 79 | ||||||||||||||
Alternative/ Other | 128 | 22 | (17) | 10 | (4) | 139 | ||||||||||||||
Long-term
AUM subtotal | 299 | 86 | (68) | 43 | (4) | 356 | ||||||||||||||
Liquidity | 164 | 1,315 | (1,283) | 2 | (2) | 196 | ||||||||||||||
Total AUM | $ | 463 | $ | 1,401 | $ | (1,351) | $ | 45 | $ | (6) | $ | 552 |
$ in billions | At December 31, 2017 | Inflows | Outflows | Market Impact | Other | At December 31, 2018 | ||||||||||||||
Equity | $ | 105 | $ | 38 | $ | (32) | $ | (8) | $ | — | $ | 103 | ||||||||
Fixed
income | 73 | 25 | (27) | (2) | (1) | 68 | ||||||||||||||
Alternative/ Other | 128 | 22 | (19) | (1) | (2) | 128 | ||||||||||||||
Long-term
AUM subtotal | 306 | 85 | (78) | (11) | (3) | 299 | ||||||||||||||
Liquidity1 | 176 | 1,351 | (1,362) | 2 | (3) | 164 | ||||||||||||||
Total AUM | $ | 482 | $ | 1,436 | $ | (1,440) | $ | (9) | $ | (6) | $ | 463 |
$ in billions | 2020 | 2019 | 2018 | ||||||||
Equity | $ | 174 | $ | 124 | $ | 111 | |||||
Fixed income | 86 | 71 | 71 | ||||||||
Alternative/Other | 145 | 134 | 131 | ||||||||
Long-term AUM subtotal | 405 | 329 | 313 | ||||||||
Liquidity | 252 | 171 | 158 | ||||||||
Total AUM | $ | 657 | $ | 500 | $ | 471 |
Fee rate in bps | 2020 | 2019 | 2018 | ||||||||
Equity | 76 | 76 | 76 | ||||||||
Fixed income | 29 | 32 | 33 | ||||||||
Alternative/Other | 58 | 64 | 66 | ||||||||
Long-term AUM | 60 | 61 | 62 | ||||||||
Liquidity | 15 | 17 | 17 | ||||||||
Total AUM | 42 | 46 | 47 |
41 | December 2020 Form 10-K |
Management's Discussion and Analysis |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Effective tax rate | 22.5 | % | 18.3 | % | 20.9 | % | |||||
Net discrete tax provisions (benefits) | $ | (122) | $ | (475) | $ | (368) | |||||
$ in billions | At December 31, 2020 | At December 31, 2019 | ||||||
Investment securities portfolio: | ||||||||
Investment securities—AFS | $ | 90.3 | $ | 42.4 | ||||
Investment securities—HTM | 52.6 | 26.1 | ||||||
Total investment securities | $ | 142.9 | $ | 68.5 | ||||
Wealth Management Loans | ||||||||
Residential real estate | $ | 35.2 | $ | 30.2 | ||||
Securities-based lending and other2 | 62.9 | 49.9 | ||||||
Total | $ | 98.1 | $ | 80.1 | ||||
Institutional
Securities Loans3 | ||||||||
Corporate4 | $ | 7.9 | $ | 5.6 | ||||
Secured lending facilities | 27.4 | 26.8 | ||||||
Commercial and Residential real estate | 10.1 | 12.0 | ||||||
Securities-based lending and Other | 5.4 | 5.4 | ||||||
Total | $ | 50.8 | $ | 49.8 | ||||
Total Assets | $ | 346.5 | $ | 219.6 | ||||
Deposits5 | $ | 309.7 | $ | 189.3 |
December 2020 Form 10-K | 42 |
Management's Discussion and Analysis |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Deferred cash-based awards | $ | 1,263 | $ | 1,233 | $ | 1,174 | |||||
Return on referenced investments | 856 | 645 | (48) | ||||||||
Total recognized in compensation expense | $ | 2,119 | $ | 1,878 | $ | 1,126 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Institutional Securities | $ | 851 | $ | 916 | $ | 611 | |||||
Wealth Management | 1,000 | 760 | 346 | ||||||||
Investment Management | 268 | 202 | 169 | ||||||||
Total recognized in compensation expense | $ | 2,119 | $ | 1,878 | $ | 1,126 |
$ in millions | |||||
Award liabilities at December 31, 20202, 3 | $ | 6,247 | |||
Fully
vested amounts to be distributed by the end of February 20214 | (1,298) | ||||
Unrecognized portion of prior awards at December 31, 20203 | 1,311 | ||||
2020 performance year awards granted in 20213 | 290 | ||||
Total5 | $ | 6,550 |
$ in millions | |||||
Estimated to be recognized in: | |||||
2021 | $ | 680 | |||
2022 | 312 | ||||
Thereafter | 609 | ||||
Total2 | $ | 1,601 |
43 | December 2020 Form 10-K |
Management's Discussion and Analysis |
December 2020 Form 10-K | 44 |
Management's Discussion and Analysis |
45 | December 2020 Form 10-K |
Management's Discussion and Analysis |
At December 31, 2020 | ||||||||||||||
$ in millions | IS | WM | IM | Total | ||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 74,281 | $ | 31,275 | $ | 98 | $ | 105,654 | ||||||
Trading assets at fair value | 308,413 | 280 | 4,045 | 312,738 | ||||||||||
Investment securities | 41,630 | 140,524 | — | 182,154 | ||||||||||
Securities purchased under agreements to resell | 84,998 | 31,236 | — | 116,234 | ||||||||||
Securities borrowed | 110,480 | 1,911 | — | 112,391 | ||||||||||
Customer and other receivables | 67,085 | 29,781 | 871 | 97,737 | ||||||||||
Loans1 | 52,449 | 98,130 | 18 | 150,597 | ||||||||||
Other
assets2 | 13,986 | 22,458 | 1,913 | 38,357 | ||||||||||
Total assets | $ | 753,322 | $ | 355,595 | $ | 6,945 | $ | 1,115,862 |
At December 31, 2019 | ||||||||||||||
$ in millions | IS | WM | IM | Total | ||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 67,657 | $ | 14,247 | $ | 267 | $ | 82,171 | ||||||
Trading assets at fair value | 293,477 | 47 | 3,586 | 297,110 | ||||||||||
Investment securities | 38,524 | 67,201 | — | 105,725 | ||||||||||
Securities purchased under agreements to resell | 80,744 | 7,480 | — | 88,224 | ||||||||||
Securities borrowed | 106,199 | 350 | — | 106,549 | ||||||||||
Customer and other receivables | 39,743 | 15,190 | 713 | 55,646 | ||||||||||
Loans1 | 50,557 | 80,075 | 5 | 130,637 | ||||||||||
Other
assets2 | 14,300 | 13,092 | 1,975 | 29,367 | ||||||||||
Total assets | $ | 691,201 | $ | 197,682 | $ | 6,546 | $ | 895,429 |
December 2020 Form 10-K | 46 |
Management's Discussion and Analysis |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Cash deposits with central banks | $ | 49,669 | $ | 35,025 | ||||
Unencumbered HQLA securities2: | ||||||||
U.S. government obligations | 136,555 | 88,754 | ||||||
U.S. agency and agency mortgage-backed securities | 99,659 | 50,732 | ||||||
Non-U.S. sovereign obligations3 | 39,745 | 29,909 | ||||||
Other investment grade securities | 2,053 | 1,591 | ||||||
Total HQLA2 | $ | 327,681 | $ | 206,011 | ||||
Cash deposits with banks (non-HQLA) | 10,942 | 9,857 | ||||||
Total Liquidity Resources | $ | 338,623 | $ | 215,868 |
47 | December 2020 Form 10-K |
Management's Discussion and Analysis |
At December 31, 2020 | At December 31, 2019 | Average Daily Balance Three Months Ended | |||||||||
$ in millions | December 31, 2020 | ||||||||||
Bank legal entities | |||||||||||
Domestic | $ | 178,033 | $ | 75,894 | $ | 166,516 | |||||
Foreign | 7,670 | 4,049 | 7,423 | ||||||||
Total
Bank legal entities | 185,703 | 79,943 | 173,939 | ||||||||
Non-Bank legal entities | |||||||||||
Domestic: | |||||||||||
Parent Company | 59,468 | 53,128 | 59,803 | ||||||||
Non-Parent Company | 33,368 | 28,905 | 34,712 | ||||||||
Total Domestic | 92,836 | 82,033 | 94,515 | ||||||||
Foreign | 60,084 | 53,892 | 57,364 | ||||||||
Total
Non-Bank legal entities | 152,920 | 135,925 | 151,879 | ||||||||
Total Liquidity Resources | $ | 338,623 | $ | 215,868 | $ | 325,818 |
Average
Daily Balance Three Months Ended | ||||||||
$ in millions | December 31, 2020 | September 30, 2020 | ||||||
Eligible HQLA1 | ||||||||
Cash deposits with central banks | $ | 43,596 | $ | 36,481 | ||||
Securities2 | 162,509 | 170,817 | ||||||
Total
Eligible HQLA1 | $ | 206,105 | $ | 207,298 | ||||
LCR | 129 | % | 136 | % |
December 2020 Form 10-K | 48 |
Management's Discussion and Analysis |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Securities purchased under agreements to resell and Securities borrowed | $ | 228,625 | $ | 194,773 | ||||
Securities sold under agreements to repurchase and Securities loaned | $ | 58,318 | $ | 62,706 | ||||
Securities received as collateral1 | $ | 4,277 | $ | 13,022 |
Average
Daily Balance Three Months Ended | ||||||||
$ in millions | December 31, 2020 | December 31, 2019 | ||||||
Securities purchased under agreements to resell and Securities borrowed | $ | 195,376 | $ | 210,257 | ||||
Securities sold under agreements to repurchase and Securities loaned | $ | 54,528 | $ | 64,870 |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Savings and demand deposits: | ||||||||
Brokerage sweep deposits1 | $ | 232,071 | $ | 121,077 | ||||
Savings
and other | 47,150 | 28,388 | ||||||
Total Savings and demand deposits | 279,221 | 149,465 | ||||||
Time deposits | 31,561 | 40,891 | ||||||
Total2 | $ | 310,782 | $ | 190,356 |
$ in millions | Parent Company | Subsidiaries | Total | ||||||||
Original
maturities of one year or less | $ | 1 | $ | 3,690 | $ | 3,691 | |||||
Original maturities greater than one year | |||||||||||
2021 | $ | 17,670 | $ | 6,571 | $ | 24,241 | |||||
2022 | 16,612 | 5,597 | 22,209 | ||||||||
2023 | 17,152 | 5,738 | 22,890 | ||||||||
2024 | 16,109 | 5,618 | 21,727 | ||||||||
2025 | 11,336 | 7,300 | 18,636 | ||||||||
Thereafter | 80,943 | 22,742 | 103,685 | ||||||||
Total | $ | 159,822 | $ | 53,566 | $ | 213,388 | |||||
Total Borrowings | $ | 159,823 | $ | 57,256 | $ | 217,079 |
49 | December 2020 Form 10-K |
Management's Discussion and Analysis |
Parent Company | |||||||||||
Short-Term Debt | Long-Term Debt | Rating Outlook | |||||||||
DBRS, Inc. | R-1 (middle) | A (high) | Stable | ||||||||
Fitch Ratings, Inc. | F1 | A | Stable | ||||||||
Moody’s Investors Service, Inc. | P-1 | A1 | Stable | ||||||||
Rating and Investment Information, Inc. | a-1 | A | Stable | ||||||||
S&P Global Ratings | A-2 | BBB+ | Stable |
MSBNA | |||||||||||
Short-Term Debt | Long-Term Debt | Rating Outlook | |||||||||
Fitch Ratings, Inc. | F1 | A+ | Stable | ||||||||
Moody’s Investors Service, Inc. | P-1 | Aa3 | Stable | ||||||||
S&P Global Ratings | A-1 | A+ | Stable |
MSPBNA | |||||||||||
Short-Term Debt | Long-Term Debt | Rating Outlook | |||||||||
Moody’s Investors Service, Inc. | P-1 | Aa3 | Stable | ||||||||
S&P Global Ratings | A-1 | A+ | Stable |
in millions, except for per share data | 2020 | 2019 | 2018 | ||||||||
Number of shares | 29 | 121 | 97 | ||||||||
Average price per share | $ | 46.01 | $ | 44.23 | $ | 50.08 | |||||
Total | $ | 1,347 | $ | 5,360 | $ | 4,860 |
Announcement date | January 20, 2021 | ||||
Amount per share | $0.35 | ||||
Date paid | February 12, 2021 | ||||
Shareholders of record as of | January 29, 2021 |
December 2020 Form 10-K | 50 |
Management's Discussion and Analysis |
Announcement date | December 15, 2020 | ||||
Date paid | January 15, 2021 | ||||
Shareholders of record as of | December 31, 2020 |
At December 31, 2020 | |||||||||||||||||
Payments Due in: | |||||||||||||||||
$ in millions | 2021 | 2022-2023 | 2024-2025 | Thereafter | Total | ||||||||||||
Borrowings1 | $ | 24,241 | $ | 45,099 | $ | 40,363 | $ | 103,685 | $ | 213,388 | |||||||
Other
secured financings1 | 1,655 | 1,684 | 134 | 408 | 3,881 | ||||||||||||
Contractual interest payments2 | 3,952 | 6,714 | 5,254 | 15,886 | 31,806 | ||||||||||||
Time deposits—principal and interest payments | 18,681 | 9,075 | 3,496 | 513 | 31,765 | ||||||||||||
Operating leases— premises3 | 841 | 1,533 | 1,171 | 2,685 | 6,230 | ||||||||||||
Purchase
obligations4 | 1,297 | 1,037 | 319 | 175 | 2,828 | ||||||||||||
Total5 | $ | 50,667 | $ | 65,142 | $ | 50,737 | $ | 123,352 | $ | 289,898 |
51 | December 2020 Form 10-K |
Management's Discussion and Analysis |
At December 31, 2020 | At December 31, 2019 | |||||||||||||
Standardized | Advanced | Standardized and Advanced | ||||||||||||
Capital buffers | ||||||||||||||
Capital conservation buffer | — | 2.5 | % | 2.5 | % | |||||||||
Stress capital buffer (“SCB”)1 | 5.7 | % | N/A | N/A | ||||||||||
G-SIB
capital surcharge2 | 3.0 | % | 3.0 | % | 3.0 | % | ||||||||
CCyB3 | 0% | 0% | 0% | |||||||||||
Capital buffer requirement4 | 8.7 | % | 5.5 | % | 5.5 | % | ||||||||
At December 31, 2020 | At December 31, 2019 | |||||||||||||
Regulatory Minimum | Standardized | Advanced | Standardized and Advanced | |||||||||||
Required ratios5 | ||||||||||||||
Common Equity Tier 1 capital ratio | 4.5 | % | 13.2 | % | 10.0 | % | 10.0 | % | ||||||
Tier 1 capital ratio | 6.0 | % | 14.7 | % | 11.5 | % | 11.5 | % | ||||||
Total capital ratio | 8.0 | % | 16.7 | % | 13.5 | % | 13.5 | % |
Standardized | Advanced | |||||||||||||
Required Ratio1 | At December 31, 2020 | Required Ratio1 | At December 31, 2020 | |||||||||||
$ in millions | ||||||||||||||
Risk-based capital | ||||||||||||||
Common Equity Tier 1 capital | $ | 78,650 | $ | 78,650 | ||||||||||
Tier 1 capital | 88,079 | 88,079 | ||||||||||||
Total capital | 97,213 | 96,994 | ||||||||||||
Total RWA | 453,106 | 445,151 | ||||||||||||
Common Equity Tier 1 capital ratio | 13.2 | % | 17.4 | % | 10.0 | % | 17.7 | % | ||||||
Tier 1 capital ratio | 14.7 | % | 19.4 | % | 11.5 | % | 19.8 | % | ||||||
Total capital ratio | 16.7 | % | 21.5 | % | 13.5 | % | 21.8 | % | ||||||
$ in millions | Required Ratio1 | At December 31, 2020 | ||||||||||||
Leverage-based capital | ||||||||||||||
Adjusted average assets2 | $ | 1,053,310 | ||||||||||||
Tier 1 leverage ratio | 4.0 | % | 8.4 | % | ||||||||||
Supplementary leverage exposure3,
4 | $ | 1,192,506 | ||||||||||||
SLR4 | 5.0 | % | 7.4 | % |
December 2020 Form 10-K | 52 |
Management's Discussion and Analysis |
At December 31, 2019 | |||||||||||
Required Ratio1 | |||||||||||
$ in millions | Standardized | Advanced | |||||||||
Risk-based capital | |||||||||||
Common Equity Tier 1 capital | $ | 64,751 | $ | 64,751 | |||||||
Tier 1 capital | 73,443 | 73,443 | |||||||||
Total capital | 82,708 | 82,423 | |||||||||
Total RWA | 394,177 | 382,496 | |||||||||
Common Equity Tier 1 capital ratio | 10.0 | % | 16.4 | % | 16.9 | % | |||||
Tier 1 capital ratio | 11.5 | % | 18.6 | % | 19.2 | % | |||||
Total capital ratio | 13.5 | % | 21.0 | % | 21.5 | % | |||||
$ in millions | Required Ratio1 | At December 31, 2019 | |||||||||
Leverage-based capital | |||||||||||
Adjusted average assets2 | $ | 889,195 | |||||||||
Tier 1 leverage ratio | 4.0 | % | 8.3 | % | |||||||
Supplementary leverage exposure3 | $ | 1,155,177 | |||||||||
SLR | 5.0 | % | 6.4 | % |
$ in millions | At December 31, 2020 | At December 31, 2019 | Change | ||||||||
Common Equity Tier 1 capital | |||||||||||
Common stock and surplus | $ | 15,799 | $ | 5,228 | $ | 10,571 | |||||
Retained earnings | 78,978 | 70,589 | 8,389 | ||||||||
AOCI | (1,962) | (2,788) | 826 | ||||||||
Regulatory adjustments and deductions: | |||||||||||
Net goodwill | (11,527) | (7,081) | (4,446) | ||||||||
Net intangible assets | (4,165) | (2,012) | (2,153) | ||||||||
Other adjustments and deductions1 | 1,527 | 815 | 712 | ||||||||
Total Common Equity Tier 1 capital | $ | 78,650 | $ | 64,751 | $ | 13,899 | |||||
Additional Tier 1 capital | |||||||||||
Preferred stock | $ | 9,250 | $ | 8,520 | $ | 730 | |||||
Noncontrolling interests | 619 | 607 | 12 | ||||||||
Additional Tier 1 capital | $ | 9,869 | $ | 9,127 | $ | 742 | |||||
Deduction for investments in covered funds | (440) | (435) | (5) | ||||||||
Total Tier 1 capital | $ | 88,079 | $ | 73,443 | $ | 14,636 | |||||
Standardized Tier 2 capital | |||||||||||
Subordinated debt | $ | 7,737 | $ | 8,538 | $ | (801) | |||||
Noncontrolling interests | 146 | 143 | 3 | ||||||||
Eligible allowance for credit losses | 1,265 | 590 | 675 | ||||||||
Other adjustments and deductions | (14) | (6) | (8) | ||||||||
Total
Standardized Tier 2 capital | $ | 9,134 | $ | 9,265 | $ | (131) | |||||
Total Standardized capital | $ | 97,213 | $ | 82,708 | $ | 14,505 | |||||
Advanced Tier 2 capital | |||||||||||
Subordinated debt | $ | 7,737 | $ | 8,538 | $ | (801) | |||||
Noncontrolling interests | 146 | 143 | 3 | ||||||||
Eligible credit reserves | 1,046 | 305 | 741 | ||||||||
Other
adjustments and deductions | (14) | (6) | (8) | ||||||||
Total Advanced Tier 2 capital | $ | 8,915 | $ | 8,980 | $ | (65) | |||||
Total Advanced capital | $ | 96,994 | $ | 82,423 | $ | 14,571 |
53 | December 2020 Form 10-K |
Management's Discussion and Analysis |
2020 | ||||||||
$ in millions | Standardized | Advanced | ||||||
Credit risk RWA | ||||||||
Balance at December 31, 2019 | $ | 342,684 | $ | 228,927 | ||||
Change related to the following items: | ||||||||
Derivatives | 17,003 | 35,426 | ||||||
Securities financing transactions | (486) | 1,921 | ||||||
Securitizations | (1,683) | (3,261) | ||||||
Investment securities | 10,950 | 8,587 | ||||||
Commitments, guarantees and loans | 9,892 | 3,745 | ||||||
Cash | 2,416 | 2,678 | ||||||
Equity investments | 3,796 | 4,004 | ||||||
Other credit risk1 | 2,494 | 2,903 | ||||||
Total change in credit risk RWA | $ | 44,382 | $ | 56,003 | ||||
Balance at December 31, 2020 | $ | 387,066 | $ | 284,930 | ||||
Market risk RWA | ||||||||
Balance at December 31, 2019 | $ | 51,493 | $ | 51,597 | ||||
Change related to the following items: | ||||||||
Regulatory VaR | 8,578 | 8,578 | ||||||
Regulatory stressed VaR | 975 | 975 | ||||||
Incremental risk charge | 1,968 | 1,968 | ||||||
Comprehensive risk measure | 145 | 41 | ||||||
Specific risk: | ||||||||
Non-securitizations | 2,938 | 2,938 | ||||||
Securitizations | (57) | (57) | ||||||
Total change in market risk RWA | $ | 14,547 | $ | 14,443 | ||||
Balance at December 31, 2020 | $ | 66,040 | $ | 66,040 | ||||
Operational risk RWA | ||||||||
Balance at December 31, 2019 | N/A | $ | 101,972 | |||||
Change in operational risk RWA | N/A | (7,791) | ||||||
Balance at December 31, 2020 | N/A | $ | 94,181 | |||||
Total RWA | $ | 453,106 | $ | 445,151 |
December 2020 Form 10-K | 54 |
Management's Discussion and Analysis |
Actual Amount/Ratio | |||||||||||||||||
$ in millions | Regulatory Minimum | Required Ratio1 | At December 31, 2020 | At December 31, 2019 | |||||||||||||
External TLAC2 | $ | 216,129 | $ | 196,888 | |||||||||||||
External TLAC as a % of RWA | 18.0 | % | 21.5 | % | 47.7 | % | 49.9 | % | |||||||||
External TLAC as a % of leverage exposure | 7.5 | % | 9.5 | % | 18.1 | % | 17.0 | % | |||||||||
Eligible LTD3 | $ | 120,561 | $ | 113,624 | |||||||||||||
Eligible LTD as a % of RWA | 9.0 | % | 9.0 | % | 26.6 | % | 28.8 | % | |||||||||
Eligible LTD as a % of leverage exposure | 4.5 | % | 4.5 | % | 10.1 | % | 9.8 | % |
55 | December 2020 Form 10-K |
Management's Discussion and Analysis |
December 2020 Form 10-K | 56 |
Management's Discussion and Analysis |
$ in billions | 2020 | 2019 | 2018 | ||||||||
Institutional Securities | $ | 42.8 | $ | 40.4 | $ | 40.8 | |||||
Wealth Management2 | 20.8 | 18.2 | 16.8 | ||||||||
Investment Management | 2.6 | 2.5 | 2.6 | ||||||||
Parent | 14.0 | 11.6 | 9.8 | ||||||||
Total | $ | 80.2 | $ | 72.7 | $ | 70.0 |
57 | December 2020 Form 10-K |
Management's Discussion and Analysis |
December 2020 Form 10-K | 58 |
Management's Discussion and Analysis |
59 | December 2020 Form 10-K |
Management's Discussion and Analysis |
December 2020 Form 10-K | 60 |
61 | December 2020 Form 10-K |
Risk Disclosures |
December 2020 Form 10-K | 62 |
Risk Disclosures |
63 | December 2020 Form 10-K |
Risk Disclosures |
December 2020 Form 10-K | 64 |
Risk Disclosures |
65 | December 2020 Form 10-K |
Risk Disclosures |
2020 | ||||||||||||||
$ in millions | Period End | Average | High2 | Low2 | ||||||||||
Interest rate and credit spread | $ | 35 | $ | 37 | $ | 62 | $ | 24 | ||||||
Equity price | 23 | 23 | 39 | 12 | ||||||||||
Foreign exchange rate | 14 | 10 | 19 | 5 | ||||||||||
Commodity price | 15 | 17 | 29 | 10 | ||||||||||
Less:
Diversification benefit1 | (32) | (43) | N/A | N/A | ||||||||||
Primary Risk Categories | $ | 55 | $ | 44 | $ | 62 | $ | 28 | ||||||
Credit Portfolio | 31 | 22 | 31 | 12 | ||||||||||
Less: Diversification benefit1 | (10) | (12) | N/A | N/A | ||||||||||
Total Management VaR | $ | 76 | $ | 54 | $ | 78 | $ | 32 |
2019 | ||||||||||||||
$ in millions | Period End | Average | High2 | Low2 | ||||||||||
Interest rate and credit spread | $ | 26 | $ | 29 | $ | 43 | $ | 24 | ||||||
Equity price | 11 | 15 | 22 | 11 | ||||||||||
Foreign exchange rate | 10 | 13 | 20 | 6 | ||||||||||
Commodity price | 10 | 14 | 22 | 10 | ||||||||||
Less: Diversification benefit1 | (27) | (35) | N/A | N/A | ||||||||||
Primary Risk Categories | $ | 30 | $ | 36 | $ | 47 | $ | 30 | ||||||
Credit Portfolio | 15 | 16 | 19 | 13 | ||||||||||
Less: Diversification benefit1 | (10) | (11) | N/A | N/A | ||||||||||
Total Management VaR | $ | 35 | $ | 41 | $ | 51 | $ | 33 |
December 2020 Form 10-K | 66 |
Risk Disclosures |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Derivatives | $ | 7 | $ | 6 | ||||
Funding liabilities2 | 50 | 42 |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Basis point change | ||||||||
+100 | $ | 1,540 | $ | 151 | ||||
-100 | (654) | (642) |
Loss from 10% Decline | ||||||||
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Investments related to Investment Management activities | $ | 386 | $ | 367 | ||||
Other investments: | ||||||||
MUMSS | 184 | 169 | ||||||
Other Firm investments | 210 | 195 |
67 | December 2020 Form 10-K |
Risk Disclosures |
December 2020 Form 10-K | 68 |
Risk Disclosures |
At December 31, 2020 | ||||||||||||||
$ in millions | HFI | HFS | FVO | Total | ||||||||||
Institutional Securities: | ||||||||||||||
Corporate | $ | 6,046 | $ | 8,580 | $ | 13 | $ | 14,639 | ||||||
Secured lending facilities | 25,727 | 3,296 | 648 | 29,671 | ||||||||||
Commercial and Residential real estate | 7,346 | 859 | 3,061 | 11,266 | ||||||||||
Securities-based lending and Other | 1,279 | 55 | 7,001 | 8,335 | ||||||||||
Total Institutional Securities | 40,398 | 12,790 | 10,723 | 63,911 | ||||||||||
Wealth Management: | ||||||||||||||
Residential real estate | 35,268 | 11 | — | 35,279 | ||||||||||
Securities-based lending and Other | 62,947 | — | — | 62,947 | ||||||||||
Total Wealth Management | 98,215 | 11 | — | 98,226 | ||||||||||
Total
Investment Management1 | 6 | 12 | 425 | 443 | ||||||||||
Total loans2 | 138,619 | 12,813 | 11,148 | 162,580 | ||||||||||
ACL | (835) | (835) | ||||||||||||
Total loans, net of ACL | $ | 137,784 | $ | 12,813 | $ | 11,148 | $ | 161,745 | ||||||
Lending commitments3 | $ | 127,855 | ||||||||||||
Total exposure | $ | 289,600 |
At December 31, 2019 | ||||||||||||||
$ in millions | HFI | HFS | FVO | Total | ||||||||||
Institutional Securities: | ||||||||||||||
Corporate | $ | 5,426 | $ | 6,192 | $ | 20 | $ | 11,638 | ||||||
Secured lending facilities | 24,502 | 4,200 | 951 | 29,653 | ||||||||||
Commercial and Residential real estate | 7,859 | 2,049 | 3,290 | 13,198 | ||||||||||
Securities-based lending and Other | 503 | 123 | 6,814 | 7,440 | ||||||||||
Total Institutional Securities | 38,290 | 12,564 | 11,075 | 61,929 | ||||||||||
Wealth Management: | ||||||||||||||
Residential real estate | 30,184 | 13 | — | 30,197 | ||||||||||
Securities-based lending and Other | 49,930 | — | — | 49,930 | ||||||||||
Total Wealth Management | 80,114 | 13 | — | 80,127 | ||||||||||
Total Investment Management1 | 5 | — | 251 | 256 | ||||||||||
Total
loans2 | 118,409 | 12,577 | 11,326 | 142,312 | ||||||||||
ACL | (349) | (349) | ||||||||||||
Total loans, net of ACL | $ | 118,060 | $ | 12,577 | $ | 11,326 | $ | 141,963 | ||||||
Lending
commitments3 | $ | 120,068 | ||||||||||||
Total exposure | $ | 262,031 |
69 | December 2020 Form 10-K |
Risk Disclosures |
$ in millions | |||||
$ | 590 | ||||
Effect of CECL adoption | (41) | ||||
Gross charge-offs | (105) | ||||
Recoveries | 8 | ||||
Net (charge-offs) recoveries | (97) | ||||
Provision2 | 762 | ||||
Other | 17 | ||||
December 31, 2020 | $ | 1,231 | |||
ACL—Loans | $ | 835 | |||
ACL—Lending commitments | 396 |
December 2020 Form 10-K | 70 |
Risk Disclosures |
At December 31, 2020 | At December 31, 2019 | |||||||||||||
IS | WM | IS | WM | |||||||||||
Accrual | 99.2 | % | 99.7 | % | 99.0 | % | 99.9 | % | ||||||
Nonaccrual1 | 0.8 | % | 0.3 | % | 1.0 | % | 0.1 | % |
At December 31, 2020 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||
Loans | |||||||||||||||||
AA | $ | 279 | $ | 10 | $ | — | $ | — | $ | 289 | |||||||
A | 759 | 798 | 36 | 391 | 1,984 | ||||||||||||
BBB | 5,043 | 5,726 | 2,746 | 469 | 13,984 | ||||||||||||
BB | 10,963 | 7,749 | 5,324 | 503 | 24,539 | ||||||||||||
Other NIG | 5,214 | 6,956 | 4,002 | 3,269 | 19,441 | ||||||||||||
Unrated2 | 141 | 142 | 330 | 2,322 | 2,935 | ||||||||||||
Total loans | 22,399 | 21,381 | 12,438 | 6,954 | 63,172 | ||||||||||||
Lending commitments | |||||||||||||||||
AAA | — | 50 | — | — | 50 | ||||||||||||
AA | 4,047 | 1,038 | 2,135 | — | 7,220 | ||||||||||||
A | 6,025 | 8,359 | 9,808 | 425 | 24,617 | ||||||||||||
BBB | 6,783 | 17,782 | 15,500 | 460 | 40,525 | ||||||||||||
BB | 4,357 | 8,958 | 7,958 | 3,103 | 24,376 | ||||||||||||
Other NIG | 664 | 7,275 | 6,077 | 2,652 | 16,668 | ||||||||||||
Unrated2 | 4 | — | — | — | 4 | ||||||||||||
Total
lending commitments | 21,880 | 43,462 | 41,478 | 6,640 | 113,460 | ||||||||||||
Total exposure | $ | 44,279 | $ | 64,843 | $ | 53,916 | $ | 13,594 | $ | 176,632 |
At December 31, 2019 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||
Loans | |||||||||||||||||
AA | $ | 7 | $ | 50 | $ | — | $ | 5 | $ | 62 | |||||||
A | 955 | 923 | 516 | 277 | 2,671 | ||||||||||||
BBB | 2,297 | 5,589 | 3,592 | 949 | 12,427 | ||||||||||||
BB | 9,031 | 11,189 | 9,452 | 1,449 | 31,121 | ||||||||||||
Other NIG | 4,020 | 5,635 | 2,595 | 1,143 | 13,393 | ||||||||||||
Unrated2 | 117 | 82 | 131 | 1,628 | 1,958 | ||||||||||||
Total loans | 16,427 | 23,468 | 16,286 | 5,451 | 61,632 | ||||||||||||
Lending commitments | |||||||||||||||||
AAA | — | 50 | — | — | 50 | ||||||||||||
AA | 2,838 | 908 | 2,509 | — | 6,255 | ||||||||||||
A | 6,461 | 7,287 | 9,371 | 298 | 23,417 | ||||||||||||
BBB | 7,548 | 13,780 | 20,560 | 753 | 42,641 | ||||||||||||
BB | 2,464 | 5,610 | 8,333 | 1,526 | 17,933 | ||||||||||||
Other NIG | 2,193 | 4,741 | 7,062 | 2,471 | 16,467 | ||||||||||||
Unrated2 | — | 9 | 107 | 7 | 123 | ||||||||||||
Total lending commitments | 21,504 | 32,385 | 47,942 | 5,055 | 106,886 | ||||||||||||
Total exposure | $ | 37,931 | $ | 55,853 | $ | 64,228 | $ | 10,506 | $ | 168,518 |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Financials | $ | 44,358 | $ | 40,992 | ||||
Real estate | 25,484 | 28,348 | ||||||
Industrials | 15,861 | 13,136 | ||||||
Healthcare | 12,650 | 14,113 | ||||||
Communications services | 12,600 | 12,165 | ||||||
Information technology | 11,358 | 9,201 | ||||||
Consumer discretionary | 11,177 | 9,589 | ||||||
Energy | 10,064 | 9,461 | ||||||
Utilities | 9,504 | 9,905 | ||||||
Consumer staples | 9,088 | 9,724 | ||||||
Materials | 6,084 | 5,577 | ||||||
Insurance | 3,889 | 3,755 | ||||||
Other | 4,515 | 2,552 | ||||||
Total exposure | $ | 176,632 | $ | 168,518 |
71 | December 2020 Form 10-K |
Risk Disclosures |
At December 31, 2020 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||
Loans, net of ACL | $ | 1,241 | $ | 907 | $ | 873 | $ | 2,090 | $ | 5,111 | |||||||
Lending commitments | 2,810 | 4,649 | 2,678 | 4,650 | 14,787 | ||||||||||||
Total exposure | $ | 4,051 | $ | 5,556 | $ | 3,551 | $ | 6,740 | $ | 19,898 |
At December 31, 2019 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||
Loans, net of ACL | $ | 1,194 | $ | 1,024 | $ | 839 | $ | 390 | $ | 3,447 | |||||||
Lending commitments | 7,921 | 5,012 | 2,285 | 3,090 | 18,308 | ||||||||||||
Total exposure | $ | 9,115 | $ | 6,036 | $ | 3,124 | $ | 3,480 | $ | 21,755 |
At December 31, 2020 | |||||||||||||||||
$ in millions | Loans | Lending Commitments | Total | ||||||||||||||
Corporate | $ | 6,046 | $ | 69,488 | $ | 75,534 | |||||||||||
Secured lending facilities | 25,727 | 8,312 | 34,039 | ||||||||||||||
Commercial real estate | 7,346 | 334 | 7,680 | ||||||||||||||
Other | 1,279 | 1,135 | 2,414 | ||||||||||||||
Total, before ACL | $ | 40,398 | $ | 79,269 | $ | 119,667 | |||||||||||
ACL | $ | (739) | $ | (391) | $ | (1,130) |
At December 31, 2019 | |||||||||||||||||
$ in millions | Loans | Lending Commitments | Total | ||||||||||||||
Corporate | $ | 5,426 | $ | 61,716 | $ | 67,142 | |||||||||||
Secured lending facilities | 24,502 | 6,105 | 30,607 | ||||||||||||||
Commercial real estate | 7,859 | 425 | 8,284 | ||||||||||||||
Other | 503 | 832 | 1,335 | ||||||||||||||
Total, before ACL | $ | 38,290 | $ | 69,078 | $ | 107,368 | |||||||||||
ACL | $ | (297) | $ | (236) | $ | (533) |
$ in millions | Corporate | Secured lending facilities | Commercial real estate | Other | Total | ||||||||||||
At December 31, 2019 | |||||||||||||||||
ACL—Loans | $ | 115 | $ | 101 | $ | 75 | $ | 6 | $ | 297 | |||||||
ACL—Lending commitments | $ | 201 | $ | 27 | $ | 7 | $ | 1 | $ | 236 | |||||||
Total | $ | 316 | $ | 128 | $ | 82 | $ | 7 | $ | 533 | |||||||
Effect of CECL adoption | (43) | (53) | 35 | 3 | (58) | ||||||||||||
Gross charge-offs | (39) | — | (64) | — | (103) | ||||||||||||
Recoveries | 4 | — | — | 4 | 8 | ||||||||||||
Net (charge-offs) recoveries | (35) | — | (64) | 4 | (95) | ||||||||||||
Provision (release)1 | 386 | 158 | 204 | (15) | 733 | ||||||||||||
Other | 8 | 3 | (35) | 41 | 17 | ||||||||||||
Total
at | $ | 632 | $ | 236 | $ | 222 | $ | 40 | $ | 1,130 | |||||||
ACL—Loans | $ | 309 | $ | 198 | $ | 211 | $ | 21 | $ | 739 | |||||||
ACL—Lending commitments | 323 | 38 | 11 | 19 | 391 | ||||||||||||
At December 31, 2020 | At December 31, 2019 | |||||||
Corporate | 5.1 | % | 2.1 | % | ||||
Secured lending facilities | 0.8 | % | 0.4 | % | ||||
Commercial real estate | 2.9 | % | 1.0 | % | ||||
Other | 1.7 | % | 1.2 | % | ||||
Total Institutional Securities loans | 1.8 | % | 0.8 | % |
At December 31, 2020 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||
Securities-based lending and Other loans | $ | 54,483 | $ | 4,587 | $ | 2,167 | $ | 1,672 | $ | 62,909 | |||||||
Residential real estate loans | 9 | 1 | 1 | 35,210 | 35,221 | ||||||||||||
Total loans, net of ACL | $ | 54,492 | $ | 4,588 | $ | 2,168 | $ | 36,882 | $ | 98,130 | |||||||
Lending commitments | 11,666 | 2,356 | 120 | 253 | 14,395 | ||||||||||||
Total exposure | $ | 66,158 | $ | 6,944 | $ | 2,288 | $ | 37,135 | $ | 112,525 | |||||||
December 2020 Form 10-K | 72 |
Risk Disclosures |
At December 31, 2019 | |||||||||||||||||
Contractual Years to Maturity | |||||||||||||||||
$ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||
Securities-based lending and Other loans | $ | 41,863 | $ | 3,972 | $ | 2,783 | $ | 1,284 | $ | 49,902 | |||||||
Residential real estate loans | 13 | 11 | — | 30,149 | 30,173 | ||||||||||||
Total loans, net of ACL | $ | 41,876 | $ | 3,983 | $ | 2,783 | $ | 31,433 | $ | 80,075 | |||||||
Lending commitments | 10,219 | 2,564 | 71 | 307 | 13,161 | ||||||||||||
Total exposure | $ | 52,095 | $ | 6,547 | $ | 2,854 | $ | 31,740 | $ | 93,236 | |||||||
$ in millions | |||||
$ | 57 | ||||
Effect of CECL adoption | 17 | ||||
Gross charge-offs | (2) | ||||
Provision2 | 29 | ||||
December 31, 2020 | $ | 101 | |||
ACL—Loans | $ | 96 | |||
ACL—Lending commitments | 5 | ||||
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Institutional Securities | $ | 51,570 | $ | 22,216 | ||||
Wealth Management | 23,144 | 9,700 | ||||||
Total | $ | 74,714 | $ | 31,916 |
73 | December 2020 Form 10-K |
Risk Disclosures |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Currently employed by the Firm | $ | 3,100 | N/A | |||||
No longer employed by the Firm | 140 | N/A | ||||||
Employee loans | $ | 3,240 | $ | 2,980 | ||||
ACL1 | (165) | (61) | ||||||
Employee loans, net of ACL | $ | 3,075 | $ | 2,919 | ||||
Remaining repayment term, weighted average in years | 5.3 | 4.8 |
Counterparty
Credit Rating1 | ||||||||||||||||||||
$ in millions | AAA | AA | A | BBB | NIG | Total | ||||||||||||||
At December 31, 2020 | ||||||||||||||||||||
<1 year | $ | 1,179 | $ | 16,166 | $ | 52,164 | $ | 26,088 | $ | 12,175 | $ | 107,772 | ||||||||
1-3 years | 572 | 5,225 | 17,560 | 13,750 | 8,134 | 45,241 | ||||||||||||||
3-5 years | 359 | 4,326 | 11,328 | 8,363 | 4,488 | 28,864 | ||||||||||||||
Over 5 years | 4,545 | 32,049 | 84,845 | 63,084 | 13,680 | 198,203 | ||||||||||||||
Total, gross | $ | 6,655 | $ | 57,766 | $ | 165,897 | $ | 111,285 | $ | 38,477 | $ | 380,080 | ||||||||
Counterparty netting | (3,269) | (44,306) | (134,310) | (84,171) | (22,227) | (288,283) | ||||||||||||||
Cash and securities collateral | (3,124) | (10,973) | (26,712) | (20,708) | (8,979) | (70,496) | ||||||||||||||
Total, net | $ | 262 | $ | 2,487 | $ | 4,875 | $ | 6,406 | $ | 7,271 | $ | 21,301 |
Counterparty
Credit Rating1 | ||||||||||||||||||||
$ in millions | AAA | AA | A | BBB | NIG | Total | ||||||||||||||
At December 31, 2019 | ||||||||||||||||||||
<1 year | $ | 371 | $ | 9,195 | $ | 31,789 | $ | 22,757 | $ | 6,328 | $ | 70,440 | ||||||||
1-3 years | 378 | 5,150 | 17,707 | 11,495 | 9,016 | 43,746 | ||||||||||||||
3-5 years | 502 | 4,448 | 9,903 | 6,881 | 3,421 | 25,155 | ||||||||||||||
Over 5 years | 3,689 | 24,675 | 70,765 | 40,542 | 14,587 | 154,258 | ||||||||||||||
Total, gross | $ | 4,940 | $ | 43,468 | $ | 130,164 | $ | 81,675 | $ | 33,352 | $ | 293,599 | ||||||||
Counterparty netting | (2,172) | (33,521) | (103,452) | (62,345) | (19,514) | (221,004) | ||||||||||||||
Cash and securities collateral | (2,641) | (8,134) | (22,319) | (14,570) | (10,475) | (58,139) | ||||||||||||||
Total, net | $ | 127 | $ | 1,813 | $ | 4,393 | $ | 4,760 | $ | 3,363 | $ | 14,456 |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Industry | ||||||||
Financials | $ | 6,195 | $ | 3,448 | ||||
Utilities | 3,954 | 4,275 | ||||||
Consumer discretionary | 1,866 | 370 | ||||||
Healthcare | 1,494 | 991 | ||||||
Industrials | 1,291 | 914 | ||||||
Information technology | 1,104 | 659 | ||||||
Energy | 965 | 524 | ||||||
Regional governments | 806 | 791 | ||||||
Not-for-profit organizations | 701 | 657 | ||||||
Sovereign governments | 650 | 403 | ||||||
Communications services | 529 | 381 | ||||||
Insurance | 518 | 214 | ||||||
Materials | 430 | 325 | ||||||
Real estate | 378 | 315 | ||||||
Consumer staples | 339 | 129 | ||||||
Other | 81 | 60 | ||||||
Total | $ | 21,301 | $ | 14,456 |
December 2020 Form 10-K | 74 |
Risk Disclosures |
United Kingdom | |||||||||||
$ in millions | Sovereigns | Non-sovereigns | Total | ||||||||
Net
inventory1 | $ | 565 | $ | 1,334 | $ | 1,899 | |||||
Net counterparty exposure2 | 45 | 11,300 | 11,345 | ||||||||
Loans | — | 2,929 | 2,929 | ||||||||
Lending commitments | — | 7,298 | 7,298 | ||||||||
Exposure before hedges | 610 | 22,861 | 23,471 | ||||||||
Hedges3 | (312) | (1,481) | (1,793) | ||||||||
Net exposure | $ | 298 | $ | 21,380 | $ | 21,678 |
Japan | |||||||||||
$ in millions | Sovereigns | Non-sovereigns | Total | ||||||||
Net
inventory1 | $ | 4,142 | $ | 715 | $ | 4,857 | |||||
Net counterparty exposure2 | 42 | 5,073 | 5,115 | ||||||||
Loans | — | 409 | 409 | ||||||||
Exposure before hedges | 4,184 | 6,197 | 10,381 | ||||||||
Hedges3 | (91) | (180) | (271) | ||||||||
Net exposure | $ | 4,093 | $ | 6,017 | $ | 10,110 |
Germany | |||||||||||
$ in millions | Sovereigns | Non-sovereigns | Total | ||||||||
Net inventory1 | $ | 52 | $ | 148 | $ | 200 | |||||
Net counterparty exposure2 | 243 | 2,785 | 3,028 | ||||||||
Loans | — | 2,202 | 2,202 | ||||||||
Lending commitments | — | 4,594 | 4,594 | ||||||||
Exposure before hedges | 295 | 9,729 | 10,024 | ||||||||
Hedges3 | (287) | (893) | (1,180) | ||||||||
Net exposure | $ | 8 | $ | 8,836 | $ | 8,844 |
France | |||||||||||
$ in millions | Sovereigns | Non-sovereigns | Total | ||||||||
Net
inventory1 | $ | (596) | $ | (65) | $ | (661) | |||||
Net counterparty exposure2 | 20 | 2,907 | 2,927 | ||||||||
Loans | — | 680 | 680 | ||||||||
Lending commitments | — | 3,106 | 3,106 | ||||||||
Exposure before hedges | (576) | 6,628 | 6,052 | ||||||||
Hedges3 | (6) | (627) | (633) | ||||||||
Net exposure | $ | (582) | $ | 6,001 | $ | 5,419 |
Spain | |||||||||||
$ in millions | Sovereigns | Non-sovereigns | Total | ||||||||
Net
inventory1 | $ | (520) | $ | (40) | $ | (560) | |||||
Net counterparty exposure2 | 14 | 281 | 295 | ||||||||
Loans | — | 3,795 | 3,795 | ||||||||
Lending commitments | — | 1,072 | 1,072 | ||||||||
Exposure before hedges | (506) | 5,108 | 4,602 | ||||||||
Hedges3 | — | (109) | (109) | ||||||||
Net exposure | $ | (506) | $ | 4,999 | $ | 4,493 |
75 | December 2020 Form 10-K |
Risk Disclosures |
China | |||||||||||
$ in millions | Sovereigns | Non-sovereigns | Total | ||||||||
Net
inventory1 | $ | (148) | $ | 2,135 | $ | 1,987 | |||||
Net counterparty exposure2 | 98 | 697 | 795 | ||||||||
Loans | — | 545 | 545 | ||||||||
Lending commitments | — | 809 | 809 | ||||||||
Exposure before hedges | (50) | 4,186 | 4,136 | ||||||||
Hedges3 | (82) | (118) | (200) | ||||||||
Net exposure | $ | (132) | $ | 4,068 | $ | 3,936 |
Brazil | |||||||||||
$ in millions | Sovereigns | Non-sovereigns | Total | ||||||||
Net
inventory1 | $ | 3,101 | $ | 101 | $ | 3,202 | |||||
Net counterparty exposure2 | — | 298 | 298 | ||||||||
Loans | — | 199 | 199 | ||||||||
Lending commitments | — | 179 | 179 | ||||||||
Exposure before hedges | 3,101 | 777 | 3,878 | ||||||||
Hedges3 | (12) | (15) | (27) | ||||||||
Net exposure | $ | 3,089 | $ | 762 | $ | 3,851 |
Ireland | |||||||||||
$ in millions | Sovereigns | Non-sovereigns | Total | ||||||||
Net
inventory1 | $ | 9 | $ | 1,060 | $ | 1,069 | |||||
Net counterparty exposure2 | — | 571 | 571 | ||||||||
Loans | — | 1,508 | 1,508 | ||||||||
Lending commitments | — | 285 | 285 | ||||||||
Exposure before hedges | 9 | 3,424 | 3,433 | ||||||||
Net exposure | $ | 9 | $ | 3,424 | $ | 3,433 |
India | |||||||||||
$ in millions | Sovereigns | Non-sovereigns | Total | ||||||||
Net inventory1 | $ | 1,037 | $ | 783 | $ | 1,820 | |||||
Net counterparty exposure2 | — | 863 | 863 | ||||||||
Loans | — | 228 | 228 | ||||||||
Exposure before hedges | 1,037 | 1,874 | 2,911 | ||||||||
Net exposure | $ | 1,037 | $ | 1,874 | $ | 2,911 |
Australia | |||||||||||
$ in millions | Sovereigns | Non-sovereigns | Total | ||||||||
Net inventory1 | $ | 597 | $ | 377 | $ | 974 | |||||
Net counterparty exposure2 | 17 | 468 | 485 | ||||||||
Loans | — | 345 | 345 | ||||||||
Lending commitments | — | 1,222 | 1,222 | ||||||||
Exposure before hedges | 614 | 2,412 | 3,026 | ||||||||
Hedges3 | — | (174) | (174) | ||||||||
Net exposure | $ | 614 | $ | 2,238 | $ | 2,852 |
$ in millions | ||||||||
Counterparty credit exposure | Collateral2 | |||||||
Germany | Japan and France | $ | 14,269 | |||||
United Kingdom | U.K., U.S. and Spain | 11,125 | ||||||
Other | Japan, U.S. and France | 21,917 |
December 2020 Form 10-K | 76 |
Risk Disclosures |
77 | December 2020 Form 10-K |
Risk Disclosures |
December 2020 Form 10-K | 78 |
79 | December 2020 Form 10-K |
December 2020 Form 10-K | 80 |
Consolidated Income Statements |
in millions, except per share data | 2020 | 2019 | 2018 | ||||||||
Revenues | |||||||||||
Investment banking | $ | i 7,674 | $ | i 6,163 | $ | i 6,482 | |||||
Trading | i 13,992 | i 11,095 | i 11,551 | ||||||||
Investments | i 986 | i 1,540 | i 437 | ||||||||
Commissions and fees | i 4,851 | i 3,919 | i 4,190 | ||||||||
Asset management | i 14,272 | i 13,083 | i 12,898 | ||||||||
Other | i 110 | i 925 | i 743 | ||||||||
Total non-interest revenues | i 41,885 | i 36,725 | i 36,301 | ||||||||
Interest income | i 10,162 | i 17,098 | i 13,892 | ||||||||
Interest expense | i 3,849 | i 12,404 | i 10,086 | ||||||||
Net interest | i 6,313 | i 4,694 | i 3,806 | ||||||||
Net revenues | i 48,198 | i 41,419 | i 40,107 | ||||||||
Non-interest expenses | |||||||||||
Compensation and benefits | i 20,854 | i 18,837 | i 17,632 | ||||||||
Brokerage, clearing and exchange fees | i 2,929 | i 2,493 | i 2,393 | ||||||||
Information processing and communications | i 2,465 | i 2,194 | i 2,016 | ||||||||
Professional services | i 2,205 | i 2,137 | i 2,265 | ||||||||
Occupancy and equipment | i 1,559 | i 1,428 | i 1,391 | ||||||||
Marketing and business development | i 434 | i 660 | i 691 | ||||||||
Other | i 3,334 | i 2,369 | i 2,482 | ||||||||
Total non-interest expenses | i 33,780 | i 30,118 | i 28,870 | ||||||||
Income before provision for income taxes | i 14,418 | i 11,301 | i 11,237 | ||||||||
Provision for income taxes | i 3,239 | i 2,064 | i 2,350 | ||||||||
Income from continuing operations | i 11,179 | i 9,237 | i 8,887 | ||||||||
Income (loss) from discontinued operations, net of income taxes | i — | i — | ( i 4) | ||||||||
Net income | $ | i 11,179 | $ | i 9,237 | $ | i 8,883 | |||||
Net income applicable to noncontrolling interests | i 183 | i 195 | i 135 | ||||||||
Net income applicable to Morgan Stanley | $ | i 10,996 | $ | i 9,042 | $ | i 8,748 | |||||
Preferred stock dividends and other | i 496 | i 530 | i 526 | ||||||||
Earnings applicable to Morgan Stanley common shareholders | $ | i 10,500 | $ | i 8,512 | $ | i 8,222 | |||||
Earnings per common share | |||||||||||
Basic | $ | i 6.55 | $ | i 5.26 | $ | i 4.81 | |||||
Diluted | i 6.46 | i 5.19 | i 4.73 | ||||||||
Average common shares outstanding | |||||||||||
Basic | i 1,603 | i 1,617 | i 1,708 | ||||||||
Diluted | i 1,624 | i 1,640 | i 1,738 |
See Notes to Consolidated Financial Statements | 81 | December 2020 Form 10-K |
Consolidated Comprehensive Income Statements |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Net income | $ | i 11,179 | $ | i 9,237 | $ | i 8,883 | |||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | i 170 | i 3 | ( i 90) | ||||||||
Change in net unrealized gains (losses) on available-for-sale securities | i 1,580 | i 1,137 | ( i 272) | ||||||||
Pension and other | i 146 | ( i 66) | i 137 | ||||||||
Change in net debt valuation adjustment | ( i 1,028) | ( i 1,639) | i 1,517 | ||||||||
Total other comprehensive income (loss) | $ | i 868 | $ | ( i 565) | $ | i 1,292 | |||||
Comprehensive income | $ | i 12,047 | $ | i 8,672 | $ | i 10,175 | |||||
Net income applicable to noncontrolling interests | i 183 | i 195 | i 135 | ||||||||
Other comprehensive income (loss) applicable to noncontrolling interests | i 42 | ( i 69) | i 87 | ||||||||
Comprehensive income applicable to Morgan Stanley | $ | i 11,822 | $ | i 8,546 | $ | i 9,953 |
December 2020 Form 10-K | 82 | See Notes to Consolidated Financial Statements |
Consolidated Balance Sheets |
$ in millions, except share data | At | At | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | i 105,654 | $ | i 82,171 | ||||
Trading
assets at fair value ($ i 132,578 and $ i 128,386 were pledged to
various parties) | i 312,738 | i 297,110 | ||||||
Investment
securities (includes $ i 110,383 and $ i 62,223 at fair value) | i 182,154 | i 105,725 | ||||||
Securities
purchased under agreements to resell (includes $ i 15 and $ i 4
at fair value) | i 116,234 | i 88,224 | ||||||
Securities borrowed | i 112,391 | i 106,549 | ||||||
Customer and other receivables | i 97,737 | i 55,646 | ||||||
Loans: | ||||||||
Held
for investment (net of allowance of $ i 835 and $ i 349) | i 137,784 | i 118,060 | ||||||
Held for sale | i 12,813 | i 12,577 | ||||||
Goodwill | i 11,635 | i 7,143 | ||||||
Intangible
assets (net of accumulated amortization of $ i 3,265 and $ i 3,204) | i 4,980 | i 2,107 | ||||||
Other assets | i 21,742 | i 20,117 | ||||||
Total assets | $ | i 1,115,862 | $ | i 895,429 | ||||
Liabilities | ||||||||
Deposits
(includes $ i 3,521 and $ i 2,099 at fair value) | $ | i 310,782 | $ | i 190,356 | ||||
Trading liabilities at fair value | i 157,631 | i 133,356 | ||||||
Securities
sold under agreements to repurchase (includes $ i 1,115 and $ i 733
at fair value) | i 50,587 | i 54,200 | ||||||
Securities loaned | i 7,731 | i 8,506 | ||||||
Other
secured financings (includes $ i 11,701 and $ i 7,809 at fair value) | i 15,863 | i 14,698 | ||||||
Customer and other payables | i 227,437 | i 197,834 | ||||||
Other liabilities and accrued expenses | i 25,603 | i 21,155 | ||||||
Borrowings
(includes $ i 73,701 and $ i 64,461 at fair value) | i 217,079 | i 192,627 | ||||||
Total liabilities | i 1,012,713 | i 812,732 | ||||||
Commitments and contingent liabilities (see Note 15) | i | i | ||||||
Equity | ||||||||
Morgan Stanley shareholders’ equity: | ||||||||
Preferred stock | i 9,250 | i 8,520 | ||||||
Common
stock, $ i i 0.01 / par value: | ||||||||
Shares
authorized: i i 3,500,000,000 / ;
Shares issued: i i 2,038,893,979 / ;
Shares outstanding: i 1,809,624,144 and i 1,593,973,680 | i 20 | i 20 | ||||||
Additional paid-in capital | i 25,546 | i 23,935 | ||||||
Retained earnings | i 78,694 | i 70,589 | ||||||
Employee stock trusts | i 3,043 | i 2,918 | ||||||
Accumulated other comprehensive income (loss) | ( i 1,962) | ( i 2,788) | ||||||
Common
stock held in treasury at cost, $ i i 0.01 /
par value ( i 229,269,835 and i 444,920,299 shares) | ( i 9,767) | ( i 18,727) | ||||||
Common stock issued to employee stock trusts | ( i 3,043) | ( i 2,918) | ||||||
Total Morgan Stanley shareholders’ equity | i 101,781 | i 81,549 | ||||||
Noncontrolling interests | i 1,368 | i 1,148 | ||||||
Total equity | i 103,149 | i 82,697 | ||||||
Total liabilities and equity | $ | i 1,115,862 | $ | i 895,429 |
See Notes to Consolidated Financial Statements | 83 | December 2020 Form 10-K |
Consolidated Statements of Changes in Total Equity |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Preferred Stock | |||||||||||
Beginning balance | $ | i 8,520 | $ | i 8,520 | $ | i 8,520 | |||||
Issuance
of preferred stock1 | i 730 | i 500 | i — | ||||||||
Redemption
of preferred stock2 | i — | ( i 500) | i — | ||||||||
Ending balance | i 9,250 | i 8,520 | i 8,520 | ||||||||
Common Stock | |||||||||||
Beginning and ending balance | i 20 | i 20 | i 20 | ||||||||
Additional Paid-in Capital | |||||||||||
Beginning balance | i 23,935 | i 23,794 | i 23,545 | ||||||||
Share-based award activity | i 518 | i 131 | i 249 | ||||||||
Issuance of preferred stock | i — | ( i 3) | i — | ||||||||
Issuance
of common stock for the acquisition of E*TRADE1 | i 1,093 | i — | i — | ||||||||
Other net increases (decreases) | i — | i 13 | i — | ||||||||
Ending balance | i 25,546 | i 23,935 | i 23,794 | ||||||||
Retained Earnings | |||||||||||
Beginning balance | i 70,589 | i 64,175 | i 57,577 | ||||||||
Cumulative
adjustments for accounting changes3 | ( i 100) | i 63 | i 306 | ||||||||
Net income applicable to Morgan Stanley | i 10,996 | i 9,042 | i 8,748 | ||||||||
Preferred
stock dividends4 | ( i 496) | ( i 524) | ( i 526) | ||||||||
Common
stock dividends4 | ( i 2,295) | ( i 2,161) | ( i 1,930) | ||||||||
Other net increases (decreases) | i — | ( i 6) | i — | ||||||||
Ending balance | i 78,694 | i 70,589 | i 64,175 | ||||||||
Employee Stock Trusts | |||||||||||
Beginning balance | i 2,918 | i 2,836 | i 2,907 | ||||||||
Share-based award activity | i 125 | i 82 | ( i 71) | ||||||||
Ending balance | i 3,043 | i 2,918 | i 2,836 | ||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Beginning balance | ( i 2,788) | ( i 2,292) | ( i 3,060) | ||||||||
Cumulative
adjustments for accounting changes3 | i — | i — | ( i 437) | ||||||||
Net change in Accumulated other comprehensive income (loss) | i 826 | ( i 496) | i 1,205 | ||||||||
Ending balance | ( i 1,962) | ( i 2,788) | ( i 2,292) | ||||||||
Common Stock Held in Treasury at Cost | |||||||||||
Beginning balance | ( i 18,727) | ( i 13,971) | ( i 9,211) | ||||||||
Share-based award activity | i 932 | i 1,198 | i 806 | ||||||||
Repurchases of common stock and employee tax withholdings | ( i 1,890) | ( i 5,954) | ( i 5,566) | ||||||||
Issuance
of common stock for the acquisition of E*TRADE1 | i 9,918 | i — | i — | ||||||||
Ending balance | ( i 9,767) | ( i 18,727) | ( i 13,971) | ||||||||
Common Stock Issued to Employee Stock Trusts | |||||||||||
Beginning balance | ( i 2,918) | ( i 2,836) | ( i 2,907) | ||||||||
Share-based award activity | ( i 125) | ( i 82) | i 71 | ||||||||
Ending balance | ( i 3,043) | ( i 2,918) | ( i 2,836) | ||||||||
Noncontrolling Interests | |||||||||||
Beginning balance | i 1,148 | i 1,160 | i 1,075 | ||||||||
Net income applicable to noncontrolling interests | i 183 | i 195 | i 135 | ||||||||
Net change in Accumulated other comprehensive income (loss) applicable to noncontrolling interests | i 42 | ( i 69) | i 87 | ||||||||
Other net increases (decreases) | ( i 5) | ( i 138) | ( i 137) | ||||||||
Ending balance | i 1,368 | i 1,148 | i 1,160 | ||||||||
Total Equity | $ | i 103,149 | $ | i 82,697 | $ | i 81,406 |
December 2020 Form 10-K | 84 | See Notes to Consolidated Financial Statements |
Consolidated Cash Flow Statements |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | i 11,179 | $ | i 9,237 | $ | i 8,883 | |||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||||||
Deferred income taxes | ( i 250) | i 165 | i 449 | ||||||||
Stock-based compensation expense | i 1,312 | i 1,153 | i 920 | ||||||||
Depreciation and amortization | i 3,769 | i 2,643 | i 1,844 | ||||||||
Provision for (Release of) credit losses on lending activities | i 762 | i 162 | ( i 15) | ||||||||
Other operating adjustments | i 274 | ( i 195) | i 199 | ||||||||
Changes in assets and liabilities: | |||||||||||
Trading assets, net of Trading liabilities | i 15,550 | ( i 13,668) | i 23,732 | ||||||||
Securities borrowed | ( i 5,076) | i 9,764 | i 7,697 | ||||||||
Securities loaned | ( i 1,541) | ( i 3,402) | ( i 1,684) | ||||||||
Customer and other receivables and other assets | ( i 29,774) | i 233 | ( i 728) | ||||||||
Customer and other payables and other liabilities | i 10,187 | i 19,942 | ( i 13,063) | ||||||||
Securities purchased under agreements to resell | ( i 28,010) | i 10,298 | ( i 14,264) | ||||||||
Securities sold under agreements to repurchase | ( i 3,613) | i 4,441 | ( i 6,665) | ||||||||
Net cash provided by (used for) operating activities | ( i 25,231) | i 40,773 | i 7,305 | ||||||||
Cash flows from investing activities | |||||||||||
Proceeds from (payments for): | |||||||||||
Other assets—Premises, equipment and software, net | ( i 1,444) | ( i 1,826) | ( i 1,865) | ||||||||
Changes in loans, net | ( i 17,949) | ( i 17,359) | ( i 8,794) | ||||||||
Investment securities: | |||||||||||
Purchases | ( i 59,777) | ( i 42,586) | ( i 27,800) | ||||||||
Proceeds from sales | i 13,750 | i 17,151 | i 3,208 | ||||||||
Proceeds from paydowns and maturities | i 24,517 | i 12,012 | i 12,668 | ||||||||
Cash acquired as part of the E*TRADE acquisition | i 3,807 | i — | i — | ||||||||
Other investing activities | ( i 802) | ( i 953) | ( i 298) | ||||||||
Net cash provided by (used for) investing activities | ( i 37,898) | ( i 33,561) | ( i 22,881) | ||||||||
Cash flows from financing activities | |||||||||||
Net proceeds from (payments for): | |||||||||||
Other secured financings | i 2,794 | i 3,695 | ( i 1,226) | ||||||||
Deposits | i 75,417 | i 2,513 | i 28,384 | ||||||||
Issuance of preferred stock, net of issuance costs | i — | i 497 | i — | ||||||||
Proceeds from issuance of Borrowings | i 60,726 | i 30,605 | i 40,059 | ||||||||
Payments for: | |||||||||||
Borrowings | ( i 50,484) | ( i 40,548) | ( i 34,781) | ||||||||
Repurchases of common stock and employee tax withholdings | ( i 1,890) | ( i 5,954) | ( i 5,566) | ||||||||
Cash dividends | ( i 2,739) | ( i 2,627) | ( i 2,375) | ||||||||
Other financing activities | ( i 40) | ( i 147) | ( i 290) | ||||||||
Net cash provided by (used for) financing activities | i 83,784 | ( i 11,966) | i 24,205 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | i 2,828 | ( i 271) | ( i 1,828) | ||||||||
Net increase (decrease) in cash and cash equivalents | i 23,483 | ( i 5,025) | i 6,801 | ||||||||
Cash and cash equivalents, at beginning of period | i 82,171 | i 87,196 | i 80,395 | ||||||||
Cash and cash equivalents, at end of period | $ | i 105,654 | $ | i 82,171 | $ | i 87,196 | |||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Cash payments for: | |||||||||||
Interest | $ | i 4,120 | $ | i 12,511 | $ | i 9,977 | |||||
Income taxes, net of refunds | i 2,591 | i 1,908 | i 1,377 |
See Notes to Consolidated Financial Statements | 85 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
December 2020 Form 10-K | 86 |
Notes to Consolidated Financial Statements |
87 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
December 2020 Form 10-K | 88 |
Notes to Consolidated Financial Statements |
89 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
December 2020 Form 10-K | 90 |
Notes to Consolidated Financial Statements |
ACL | Provision
for Credit Losses | |||||||
AFS securities | Contra Investment securities | Other revenue |
91 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
December 2020 Form 10-K | 92 |
Notes to Consolidated Financial Statements |
ACL | Provision
for Credit Losses | |||||||
Instruments measured at amortized cost (e.g., HFI loans, HTM securities and customer and other receivables) | Contra asset | Other revenue | ||||||
Employee loans | Contra asset | Compensation and benefits expense | ||||||
Off-balance sheet instruments (e.g., HFI lending commitments and certain guarantees) | Other
liabilities and accrued expenses | Other expense |
93 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
in years | Estimated Useful Life | ||||
Buildings | i 39 | ||||
Leasehold improvements—Building | term of lease
to i 25 | ||||
Leasehold improvements—Other | term of lease to i 15 | ||||
Furniture and fixtures | i 7 | ||||
Computer and communications equipment | i 3 to i 9 | ||||
Power generation assets | i 15 to i 29 | ||||
Capitalized software costs | i 2
to i 10 |
December 2020 Form 10-K | 94 |
Notes to Consolidated Financial Statements |
95 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
December 2020 Form 10-K | 96 |
Notes to Consolidated Financial Statements |
$ in millions | At October 2, 2020 | ||||
Assets | |||||
Cash and cash equivalents | $ | i 3,807 | |||
Trading assets at fair value: | |||||
Loans and lending commitments | i 1,124 | ||||
Investments | i 44 | ||||
Investment securities | i 48,855 | ||||
Securities borrowed | i 975 | ||||
Customer and other receivables | i 12,267 | ||||
Loans: | |||||
Held for investment | i 462 | ||||
Goodwill | i 4,270 | ||||
Intangible
assets1 | i 3,282 | ||||
Other assets | i 1,351 | ||||
Total assets | $ | i 76,437 | |||
Liabilities | |||||
Deposits | $ | i 44,890 | |||
Securities loaned | i 766 | ||||
Customer and other payables | i 15,488 | ||||
Other liabilities and accrued expenses | i 1,688 | ||||
Borrowings | i 1,665 | ||||
Total liabilities | $ | i 64,497 |
97 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
$ in millions | 2020 | 2019 | ||||||
Net revenues | $ | i 50,203 | $ | i 44,192 | ||||
Net income | i 11,459 | i 9,839 |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Cash and due from banks | $ | i 9,792 | $ | i 6,763 | ||||
Interest bearing deposits with banks | i 95,862 | i 75,408 | ||||||
Total Cash and cash equivalents | $ | i 105,654 | $ | i 82,171 | ||||
Restricted cash | $ | i 38,202 | $ | i 32,512 |
At December 31, 2020 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Assets at fair value | |||||||||||||||||
Trading assets: | |||||||||||||||||
U.S.
Treasury and agency securities | $ | i 43,084 | $ | i 31,524 | $ | i 9 | $ | — | $ | i 74,617 | |||||||
Other sovereign
government obligations | i 26,174 | i 5,048 | i 268 | — | i 31,490 | ||||||||||||
State
and municipal securities | i — | i 1,135 | i — | — | i 1,135 | ||||||||||||
MABS | i — | i 1,070 | i 322 | — | i 1,392 | ||||||||||||
Loans
and lending commitments2 | i — | i 5,389 | i 5,759 | — | i 11,148 | ||||||||||||
Corporate
and other debt | i — | i 30,093 | i 3,435 | — | i 33,528 | ||||||||||||
Corporate
equities3 | i 111,575 | i 1,142 | i 86 | — | i 112,803 | ||||||||||||
Derivative
and other contracts: | |||||||||||||||||
Interest rate | i 4,458 | i 227,818 | i 1,210 | — | i 233,486 | ||||||||||||
Credit | i — | i 6,840 | i 701 | — | i 7,541 | ||||||||||||
Foreign
exchange | i 29 | i 93,770 | i 260 | — | i 94,059 | ||||||||||||
Equity | i 1,132 | i 65,943 | i 1,369 | — | i 68,444 | ||||||||||||
Commodity
and other | i 1,818 | i 10,108 | i 2,723 | — | i 14,649 | ||||||||||||
Netting1 | ( i 5,488) | ( i 310,534) | ( i 1,351) | ( i 62,956) | ( i 380,329) | ||||||||||||
Total
derivative and other contracts | i 1,949 | i 93,945 | i 4,912 | ( i 62,956) | i 37,850 | ||||||||||||
Investments4 | i 624 | i 234 | i 828 | — | i 1,686 | ||||||||||||
Physical
commodities | i — | i 3,260 | i — | — | i 3,260 | ||||||||||||
Total
trading assets4 | i 183,406 | i 172,840 | i 15,619 | ( i 62,956) | i 308,909 | ||||||||||||
Investment
securities —AFS | i 46,354 | i 61,225 | i 2,804 | — | i 110,383 | ||||||||||||
Securities
purchased under agreements to resell | i — | i 12 | i 3 | — | i 15 | ||||||||||||
Total
assets at fair value | $ | i 229,760 | $ | i 234,077 | $ | i 18,426 | $ | ( i 62,956) | $ | i 419,307 |
December 2020 Form 10-K | 98 |
Notes to Consolidated Financial Statements |
At December 31, 2020 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Liabilities at fair value | |||||||||||||||||
Deposits | $ | i — | $ | i 3,395 | $ | i 126 | $ | — | $ | i 3,521 | |||||||
Trading liabilities: | |||||||||||||||||
U.S. Treasury and agency securities | i 10,204 | i 1 | i — | — | i 10,205 | ||||||||||||
Other sovereign
government obligations | i 24,209 | i 1,738 | i 16 | — | i 25,963 | ||||||||||||
Corporate
and other debt | i — | i 8,468 | i — | — | i 8,468 | ||||||||||||
Corporate
equities3 | i 67,822 | i 172 | i 63 | — | i 68,057 | ||||||||||||
Derivative
and other contracts: | |||||||||||||||||
Interest rate | i 4,789 | i 213,321 | i 528 | — | i 218,638 | ||||||||||||
Credit | i — | i 7,500 | i 652 | — | i 8,152 | ||||||||||||
Foreign
exchange | i 11 | i 94,698 | i 199 | — | i 94,908 | ||||||||||||
Equity | i 1,245 | i 81,683 | i 3,600 | — | i 86,528 | ||||||||||||
Commodity
and other | i 1,758 | i 9,418 | i 1,014 | — | i 12,190 | ||||||||||||
Netting1 | ( i 5,488) | ( i 310,534) | ( i 1,351) | ( i 58,105) | ( i 375,478) | ||||||||||||
Total
derivative and other contracts | i 2,315 | i 96,086 | i 4,642 | ( i 58,105) | i 44,938 | ||||||||||||
Total trading liabilities | i 104,550 | i 106,465 | i 4,721 | ( i 58,105) | i 157,631 | ||||||||||||
Securities
sold under agreements to repurchase | i — | i 671 | i 444 | — | i 1,115 | ||||||||||||
Other
secured financings | i — | i 11,185 | i 516 | — | i 11,701 | ||||||||||||
Borrowings | i — | i 69,327 | i 4,374 | — | i 73,701 | ||||||||||||
Total
liabilities at fair value | $ | i 104,550 | $ | i 191,043 | $ | i 10,181 | $ | ( i 58,105) | $ | i 247,669 |
At December 31, 2019 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Assets at fair value | |||||||||||||||||
Trading assets: | |||||||||||||||||
U.S.
Treasury and agency securities | $ | i 36,866 | $ | i 28,992 | $ | i 22 | $ | — | $ | i 65,880 | |||||||
Other sovereign
government obligations | i 23,402 | i 4,347 | i 5 | — | i 27,754 | ||||||||||||
State
and municipal securities | i — | i 2,790 | i 1 | — | i 2,791 | ||||||||||||
MABS | i — | i 1,690 | i 438 | — | i 2,128 | ||||||||||||
Loans
and lending commitments2 | i — | i 6,253 | i 5,073 | — | i 11,326 | ||||||||||||
Corporate
and other debt | i — | i 22,124 | i 1,396 | — | i 23,520 | ||||||||||||
Corporate
equities3 | i 123,942 | i 652 | i 97 | — | i 124,691 | ||||||||||||
Derivative
and other contracts: | |||||||||||||||||
Interest rate | i 1,265 | i 182,977 | i 1,239 | — | i 185,481 | ||||||||||||
Credit | i — | i 6,658 | i 654 | — | i 7,312 | ||||||||||||
Foreign
exchange | i 15 | i 64,260 | i 145 | — | i 64,420 | ||||||||||||
Equity | i 1,219 | i 48,927 | i 922 | — | i 51,068 | ||||||||||||
Commodity
and other | i 1,079 | i 7,255 | i 2,924 | — | i 11,258 | ||||||||||||
Netting1 | ( i 2,794) | ( i 235,947) | ( i 993) | ( i 47,804) | ( i 287,538) | ||||||||||||
Total
derivative and other contracts | i 784 | i 74,130 | i 4,891 | ( i 47,804) | i 32,001 | ||||||||||||
Investments4 | i 481 | i 252 | i 858 | — | i 1,591 | ||||||||||||
Physical
commodities | i — | i 1,907 | i — | — | i 1,907 | ||||||||||||
Total
trading assets4 | i 185,475 | i 143,137 | i 12,781 | ( i 47,804) | i 293,589 | ||||||||||||
Investment
securities —AFS | i 32,902 | i 29,321 | i — | — | i 62,223 | ||||||||||||
Securities
purchased under agreements to resell | i — | i 4 | i — | — | i 4 | ||||||||||||
Total
assets at fair value | $ | i 218,377 | $ | i 172,462 | $ | i 12,781 | $ | ( i 47,804) | $ | i 355,816 |
At December 31, 2019 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||
Liabilities at fair value | |||||||||||||||||
Deposits | $ | i — | $ | i 1,920 | $ | i 179 | $ | — | $ | i 2,099 | |||||||
Trading liabilities: | |||||||||||||||||
U.S. Treasury and agency securities | i 11,191 | i 34 | i — | — | i 11,225 | ||||||||||||
Other sovereign
government obligations | i 21,837 | i 1,332 | i 1 | — | i 23,170 | ||||||||||||
Corporate
and other debt | i — | i 7,410 | i — | — | i 7,410 | ||||||||||||
Corporate
equities3 | i 63,002 | i 79 | i 36 | — | i 63,117 | ||||||||||||
Derivative
and other contracts: | |||||||||||||||||
Interest rate | i 1,144 | i 171,025 | i 462 | — | i 172,631 | ||||||||||||
Credit | i — | i 7,391 | i 530 | — | i 7,921 | ||||||||||||
Foreign
exchange | i 6 | i 67,473 | i 176 | — | i 67,655 | ||||||||||||
Equity | i 1,200 | i 49,062 | i 2,606 | — | i 52,868 | ||||||||||||
Commodity
and other | i 1,194 | i 7,118 | i 1,312 | — | i 9,624 | ||||||||||||
Netting1 | ( i 2,794) | ( i 235,947) | ( i 993) | ( i 42,531) | ( i 282,265) | ||||||||||||
Total
derivative and other contracts | i 750 | i 66,122 | i 4,093 | ( i 42,531) | i 28,434 | ||||||||||||
Total trading liabilities | i 96,780 | i 74,977 | i 4,130 | ( i 42,531) | i 133,356 | ||||||||||||
Securities
sold under agreements to repurchase | i — | i 733 | i — | — | i 733 | ||||||||||||
Other
secured financings | i — | i 7,700 | i 109 | — | i 7,809 | ||||||||||||
Borrowings | i — | i 60,373 | i 4,088 | — | i 64,461 | ||||||||||||
Total
liabilities at fair value | $ | i 96,780 | $ | i 145,703 | $ | i 8,506 | $ | ( i 42,531) | $ | i 208,458 |
$ in millions | At | At | ||||||
Corporate | $ | i 13 | $ | i 20 | ||||
Secured lending facilities | i 648 | i 951 | ||||||
Commercial real estate | i 916 | i 2,098 | ||||||
Residential real estate | i 2,145 | i 1,192 | ||||||
Securities-based lending and Other loans | i 7,426 | i 7,065 | ||||||
Total | $ | i 11,148 | $ | i 11,326 |
$ in millions | At | At | ||||||
Customer and other receivables, net | $ | i 434 | $ | i 365 |
99 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
December 2020 Form 10-K | 100 |
Notes to Consolidated Financial Statements |
101 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
December 2020 Form 10-K | 102 |
Notes to Consolidated Financial Statements |
$ in millions | 2020 | 2019 | 2018 | ||||||||
U.S. Treasury and agency securities | |||||||||||
Beginning balance | $ | i 22 | $ | i 54 | $ | i — | |||||
Realized and unrealized gains (losses) | i 1 | i 4 | i 1 | ||||||||
Purchases | i — | i 17 | i 53 | ||||||||
Sales | ( i 22) | ( i 54) | i — | ||||||||
Net transfers | i 8 | i 1 | i — | ||||||||
Ending balance | $ | i 9 | $ | i 22 | $ | i 54 | |||||
Unrealized gains (losses) | $ | i — | $ | i 4 | $ | i 1 | |||||
Other sovereign government obligations | |||||||||||
Beginning balance | $ | i 5 | $ | i 17 | $ | i 1 | |||||
Realized and unrealized gains (losses) | i — | ( i 3) | i — | ||||||||
Purchases | i 265 | i 7 | i 41 | ||||||||
Sales | ( i 2) | ( i 6) | ( i 26) | ||||||||
Net transfers | i — | ( i 10) | i 1 | ||||||||
Ending balance | $ | i 268 | $ | i 5 | $ | i 17 | |||||
Unrealized gains (losses) | $ | i — | $ | ( i 3) | $ | i — | |||||
State and municipal securities | |||||||||||
Beginning balance | $ | i 1 | $ | i 148 | $ | i 8 | |||||
Purchases | i — | i — | i 147 | ||||||||
Sales | i — | ( i 147) | ( i 9) | ||||||||
Net transfers | ( i 1) | i — | i 2 | ||||||||
Ending balance | $ | i — | $ | i 1 | $ | i 148 | |||||
Unrealized gains (losses) | $ | i — | $ | i — | $ | i — | |||||
MABS | |||||||||||
Beginning balance | $ | i 438 | $ | i 354 | $ | i 423 | |||||
Realized and unrealized gains (losses) | ( i 66) | ( i 16) | i 82 | ||||||||
Purchases | i 175 | i 132 | i 177 | ||||||||
Sales | ( i 244) | ( i 175) | ( i 338) | ||||||||
Settlements | i — | ( i 44) | ( i 17) | ||||||||
Net transfers | i 19 | i 187 | i 27 | ||||||||
Ending balance | $ | i 322 | $ | i 438 | $ | i 354 | |||||
Unrealized gains (losses) | $ | ( i 49) | $ | ( i 57) | $ | ( i 9) | |||||
Loans and lending commitments | |||||||||||
Beginning balance | $ | i 5,073 | $ | i 6,870 | $ | i 5,945 | |||||
Realized and unrealized gains (losses) | ( i 65) | i 38 | ( i 100) | ||||||||
Purchases and originations | i 3,479 | i 2,337 | i 5,746 | ||||||||
Sales | ( i 957) | ( i 1,268) | ( i 2,529) | ||||||||
Settlements | ( i 2,196) | ( i 2,291) | ( i 2,281) | ||||||||
Net
transfers1 | i 425 | ( i 613) | i 89 | ||||||||
Ending balance | $ | i 5,759 | $ | i 5,073 | $ | i 6,870 | |||||
Unrealized gains (losses) | $ | i 58 | $ | ( i 9) | $ | ( i 137) | |||||
Corporate and other debt | |||||||||||
Beginning balance | $ | i 1,396 | $ | i 1,076 | $ | i 701 | |||||
Realized and unrealized gains (losses) | i 318 | i 418 | i 106 | ||||||||
Purchases and originations | i 2,623 | i 650 | i 734 | ||||||||
Sales | ( i 617) | ( i 729) | ( i 251) | ||||||||
Settlements | ( i 311) | ( i 7) | ( i 11) | ||||||||
Net transfers | i 26 | ( i 12) | ( i 203) | ||||||||
Ending balance | $ | i 3,435 | $ | i 1,396 | $ | i 1,076 | |||||
Unrealized gains (losses) | $ | i 311 | $ | i 361 | $ | i 70 | |||||
103 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Corporate equities | |||||||||||
Beginning balance | $ | i 97 | $ | i 95 | $ | i 166 | |||||
Realized and unrealized gains (losses) | ( i 55) | ( i 8) | i 29 | ||||||||
Purchases | i 36 | i 32 | i 13 | ||||||||
Sales | ( i 17) | ( i 271) | ( i 161) | ||||||||
Net transfers | i 25 | i 249 | i 48 | ||||||||
Ending balance | $ | i 86 | $ | i 97 | $ | i 95 | |||||
Unrealized gains (losses) | $ | ( i 39) | $ | i 1 | $ | i 17 | |||||
Investments | |||||||||||
Beginning balance | $ | i 858 | $ | i 757 | $ | i 1,020 | |||||
Realized and unrealized gains (losses) | i 32 | i 78 | ( i 25) | ||||||||
Purchases | i 61 | i 40 | i 149 | ||||||||
Sales | ( i 106) | ( i 41) | ( i 212) | ||||||||
Net transfers | ( i 17) | i 24 | ( i 175) | ||||||||
Ending balance | $ | i 828 | $ | i 858 | $ | i 757 | |||||
Unrealized gains (losses) | $ | ( i 45) | $ | i 67 | $ | ( i 27) | |||||
Investment securities —AFS | |||||||||||
Beginning balance | $ | i — | $ | i — | $ | i — | |||||
Realized and unrealized gains (losses) | i 5 | i — | i — | ||||||||
Purchases2 | i 2,799 | i — | i — | ||||||||
Ending balance | $ | i 2,804 | $ | i — | $ | i — | |||||
Unrealized gains (losses) | $ | i 5 | $ | i — | $ | i — | |||||
Securities purchased under agreements to resell | |||||||||||
Beginning balance | $ | i — | $ | i — | $ | i — | |||||
Net transfers | i 3 | i — | i — | ||||||||
Ending balance | $ | i 3 | $ | i — | $ | i — | |||||
Unrealized gains (losses) | $ | i — | $ | i — | $ | i — | |||||
Net derivatives: Interest rate | |||||||||||
Beginning balance | $ | i 777 | $ | i 618 | $ | i 1,218 | |||||
Realized and unrealized gains (losses) | ( i 150) | i 17 | i 111 | ||||||||
Purchases | i 174 | i 98 | i 63 | ||||||||
Issuances | ( i 44) | ( i 16) | ( i 19) | ||||||||
Settlements | i 40 | i 1 | ( i 172) | ||||||||
Net transfers | ( i 115) | i 59 | ( i 583) | ||||||||
Ending balance | $ | i 682 | $ | i 777 | $ | i 618 | |||||
Unrealized gains (losses) | $ | ( i 34) | $ | i 87 | $ | i 140 | |||||
Net derivatives: Credit | |||||||||||
Beginning balance | $ | i 124 | $ | i 40 | $ | i 41 | |||||
Realized and unrealized gains (losses) | ( i 91) | ( i 24) | i 33 | ||||||||
Purchases | i 98 | i 144 | i 13 | ||||||||
Issuances | ( i 112) | ( i 190) | ( i 95) | ||||||||
Settlements | i 94 | i 111 | i 56 | ||||||||
Net transfers | ( i 64) | i 43 | ( i 8) | ||||||||
Ending balance | $ | i 49 | $ | i 124 | $ | i 40 | |||||
Unrealized gains (losses) | $ | ( i 111) | $ | ( i 17) | $ | i 23 | |||||
Net derivatives: Foreign exchange | |||||||||||
Beginning balance | $ | ( i 31) | $ | i 75 | $ | ( i 112) | |||||
Realized and unrealized gains (losses) | i 156 | ( i 295) | i 179 | ||||||||
Purchases | i 4 | i 2 | i 3 | ||||||||
Issuances | i — | i — | ( i 1) | ||||||||
Settlements | ( i 17) | i 7 | i 2 | ||||||||
Net transfers | ( i 51) | i 180 | i 4 | ||||||||
Ending balance | $ | i 61 | $ | ( i 31) | $ | i 75 | |||||
Unrealized gains (losses) | $ | i 94 | $ | ( i 187) | $ | i 118 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Net derivatives: Equity | |||||||||||
Beginning balance | $ | ( i 1,684) | $ | ( i 1,485) | $ | i 1,208 | |||||
Realized and unrealized gains (losses) | i 72 | ( i 260) | i 305 | ||||||||
Purchases | i 179 | i 155 | i 122 | ||||||||
Issuances | ( i 713) | ( i 643) | ( i 1,179) | ||||||||
Settlements | ( i 354) | i 242 | i 314 | ||||||||
Net
transfers3 | i 269 | i 307 | ( i 2,255) | ||||||||
Ending balance | $ | ( i 2,231) | $ | ( i 1,684) | $ | ( i 1,485) | |||||
Unrealized gains (losses) | $ | ( i 210) | $ | ( i 194) | $ | i 211 | |||||
Net derivatives: Commodity and other | |||||||||||
Beginning balance | $ | i 1,612 | $ | i 2,052 | $ | i 1,446 | |||||
Realized and unrealized gains (losses) | i 251 | i 73 | i 500 | ||||||||
Purchases | i 89 | i 152 | i 34 | ||||||||
Issuances | ( i 57) | ( i 92) | ( i 18) | ||||||||
Settlements | ( i 183) | ( i 611) | ( i 81) | ||||||||
Net transfers | ( i 3) | i 38 | i 171 | ||||||||
Ending balance | $ | i 1,709 | $ | i 1,612 | $ | i 2,052 | |||||
Unrealized gains (losses) | $ | ( i 309) | $ | ( i 113) | $ | i 272 | |||||
Deposits | |||||||||||
Beginning balance | $ | i 179 | $ | i 27 | $ | i 47 | |||||
Realized and unrealized losses (gains) | i 15 | i 20 | ( i 1) | ||||||||
Issuances | i 21 | i 101 | i 9 | ||||||||
Settlements | ( i 17) | ( i 15) | ( i 2) | ||||||||
Net transfers | ( i 72) | i 46 | ( i 26) | ||||||||
Ending balance | $ | i 126 | $ | i 179 | $ | i 27 | |||||
Unrealized losses (gains) | $ | i 15 | $ | i 20 | $ | ( i 1) | |||||
Nonderivative trading liabilities | |||||||||||
Beginning balance | $ | i 37 | $ | i 16 | $ | i 25 | |||||
Realized and unrealized losses (gains) | ( i 18) | ( i 21) | ( i 6) | ||||||||
Purchases | ( i 35) | ( i 65) | ( i 18) | ||||||||
Sales | i 27 | i 38 | i 9 | ||||||||
Settlements | i 3 | i — | i — | ||||||||
Net transfers | i 65 | i 69 | i 6 | ||||||||
Ending balance | $ | i 79 | $ | i 37 | $ | i 16 | |||||
Unrealized losses (gains) | $ | ( i 18) | $ | ( i 21) | $ | ( i 7) | |||||
Securities sold under agreements to repurchase | |||||||||||
Beginning balance | $ | i — | $ | i — | $ | i 150 | |||||
Realized and unrealized losses (gains) | ( i 27) | i — | i — | ||||||||
Issuances | i 470 | i — | i — | ||||||||
Net transfers | i 1 | i — | ( i 150) | ||||||||
Ending balance | $ | i 444 | $ | i — | $ | i — | |||||
Unrealized losses (gains) | $ | ( i 27) | $ | i — | $ | i — | |||||
Other secured financings | |||||||||||
Beginning balance | $ | i 109 | $ | i 208 | $ | i 239 | |||||
Realized and unrealized losses (gains) | i 21 | i 5 | ( i 39) | ||||||||
Issuances | i 208 | i — | i 8 | ||||||||
Settlements | ( i 217) | ( i 8) | ( i 17) | ||||||||
Net transfers | i 395 | ( i 96) | i 17 | ||||||||
Ending balance | $ | i 516 | $ | i 109 | $ | i 208 | |||||
Unrealized losses (gains) | $ | i 21 | $ | i 5 | $ | ( i 39) |
December 2020 Form 10-K | 104 |
Notes to Consolidated Financial Statements |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Borrowings | |||||||||||
Beginning balance | $ | i 4,088 | $ | i 3,806 | $ | i 2,984 | |||||
Realized and unrealized losses (gains) | i 204 | i 728 | ( i 385) | ||||||||
Issuances | i 980 | i 1,181 | i 1,554 | ||||||||
Settlements | ( i 461) | ( i 950) | ( i 274) | ||||||||
Net transfers | ( i 437) | ( i 677) | ( i 73) | ||||||||
Ending balance | $ | i 4,374 | $ | i 4,088 | $ | i 3,806 | |||||
Unrealized losses (gains) | $ | i 201 | $ | i 600 | $ | ( i 379) | |||||
Portion of Unrealized losses (gains) recorded in OCI—Change in net DVA | i 63 | i 182 | ( i 184) |
Balance
/ Range (Average1) | ||||||||
$ in millions, except inputs | At December 31, 2020 | At December 31, 2019 | ||||||
Assets at Fair Value on a Recurring Basis | ||||||||
Other sovereign government obligations | $ | i 268 | $ | i 5 | ||||
Comparable pricing: | ||||||||
Bond price | i 106 points | N/M | ||||||
MABS | $ | i 322 | $ | i 438 | ||||
Comparable pricing: | ||||||||
Bond price | i 0 to i 80
points ( i 50 points) | i 0 to i 96
points ( i 47 points) |
Balance
/ Range (Average1) | ||||||||
$ in millions, except inputs | At December 31, 2020 | At December 31, 2019 | ||||||
Loans and lending commitments | $ | i 5,759 | $ | i 5,073 | ||||
Margin loan model: | ||||||||
Discount rate | N/A | i 1% to i 9%
( i 2%) | ||||||
Volatility skew | N/A | i 15%
to i 80% ( i 28%) | ||||||
Credit spread | N/A | i 9
to i 39 bps ( i 19 bps) | ||||||
Margin loan rate | i 1%
to i 5% ( i 3%) | N/A | ||||||
Comparable pricing: | ||||||||
Loan price | i 75 to i 102 points ( i 93
points) | i 69 to i 100 points ( i 93
points) | ||||||
Corporate and other debt | $ | i 3,435 | $ | i 1,396 | ||||
Comparable pricing: | ||||||||
Bond price | i 10 to i 133 points
( i 101 points) | i 11 to i 108
points ( i 84 points) | ||||||
Discounted cash flow: | ||||||||
Recovery rate | i 40%
to i 62% ( i 46% / i 40%) | i 35 | % | |||||
Option model: | ||||||||
Equity volatility | i 18% to i 21%
( i 19%) | i 21 | % | |||||
Corporate equities | $ | i 86 | $ | i 97 | ||||
Comparable pricing: | ||||||||
Equity price | i 100% | i 100 | % | |||||
Investments | $ | i 828 | $ | i 858 | ||||
Discounted
cash flow: | ||||||||
WACC | i 8% to i 18% ( i 15%) | i 8%
to i 17% ( i 15%) | ||||||
Exit multiple | i 7
to i 17 times ( i 12 times) | i 7
to i 16 times ( i 11 times) | ||||||
Market approach: | ||||||||
EBITDA multiple | i 8 to i 32 times ( i 11
times) | i 7 to i 24 times ( i 11
times) | ||||||
Comparable pricing: | ||||||||
Equity price | i 45% to i 100%
( i 99%) | i 75% to i 100%
( i 99%) | ||||||
Investment securities —AFS | $ | i 2,804 | $ | i — | ||||
Comparable pricing: | ||||||||
Bond price | i 97 to i 107
points ( i 101 points) | N/A | ||||||
Net derivative and other contracts: | ||||||||
Interest rate | $ | i 682 | $ | i 777 | ||||
Option model: | ||||||||
IR volatility skew | i 0% to i 349%
( i 62% / i 59%) | i 24%
to i 156% ( i 63% / i 59%) | ||||||
IR
curve correlation | i 54% to i 99% ( i 87%
/ i 89%) | i 47% to i 90%
( i 72% / i 72%) | ||||||
Bond volatility | i 6%
to i 24% ( i 13% / i 13%) | i 4%
to i 15% ( i 13% / i 14%) | ||||||
Inflation volatility | i 25% to i 66% ( i 45%
/ i 43%) | i 24% to i 63%
( i 44% / i 41%) | ||||||
IR curve | i 1% | i 1 | % | |||||
Credit | $ | i 49 | $ | i 124 | ||||
Credit default swap model: | ||||||||
Cash-synthetic basis | i 7 points | i 6
points | ||||||
Bond price | i 0 to i 85 points ( i 47
points) | i 0 to i 104 points ( i 45
points) | ||||||
Credit spread | i 20 to i 435 bps ( i 74
bps) | i 9 to i 469 bps ( i 81
bps) | ||||||
Funding spread | i 65 to i 118 bps ( i 86
bps) | i 47 to i 117 bps ( i 84
bps) | ||||||
Correlation model: | ||||||||
Credit correlation | i 27% to i 44%
( i 32%) | i 29% to i 62%
( i 36%) | ||||||
Foreign exchange2 | $ | i 61 | $ | ( i 31) | ||||
Option model: | ||||||||
IR - FX correlation | i 55% to i 59%
( i 56% i 56%) | i 32%
to i 56% ( i 46% / i 46%) | ||||||
IR volatility skew | i 0% to i 349% ( i 62%
/ i 59%) | i 24% to i 156%
( i 63% / i 59%) | ||||||
IR curve | i 6%
to i 8% ( i 7% / i 8%) | i 10%
to i 11% ( i 10% / i 10%) | ||||||
Foreign exchange volatility skew | - i 22% to i 28% ( i 3%
/ i 1%) | N/A | ||||||
Contingency probability | i 50%
to i 95% ( i 83% / i 93%) | i 85%
to i 95% ( i 94% / i 95%) |
105 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
Balance
/ Range (Average1) | ||||||||
$ in millions, except inputs | At December 31, 2020 | At December 31, 2019 | ||||||
Equity2 | $ | ( i 2,231) | $ | ( i 1,684) | ||||
Option model: | ||||||||
Equity volatility | i 16% to i 97%
( i 43%) | i 9% to i 90%
( i 36%) | ||||||
Equity volatility skew | - i 3% to i 0%
(- i 1%) | - i 2% to i 0%
(- i 1%) | ||||||
Equity correlation | i 24% to i 96%
( i 74%) | i 5% to i 98%
( i 70%) | ||||||
FX correlation | - i 79% to i 60%
(- i 16%) | - i 79% to i 60%
(- i 37%) | ||||||
IR correlation | - i 13% to i 47%
( i 21% / i 20%) | - i 11%
to i 44% ( i 18% / i 16%) | ||||||
Commodity
and other | $ | i 1,709 | $ | i 1,612 | ||||
Option model: | ||||||||
Forward power price | $- i 1 to $ i 157
($ i 28) per MWh | $ i 3 to $ i 182
($ i 28) per MWh | ||||||
Commodity volatility | i 8% to i 183%
( i 19%) | i 7% to i 183%
( i 18%) | ||||||
Cross-commodity correlation | i 43% to i 99%
( i 92%) | i 43% to i 99%
( i 93%) | ||||||
Liabilities Measured at Fair Value on a Recurring Basis | ||||||||
Deposits | $ | i 126 | $ | i 179 | ||||
Option model: | ||||||||
Equity volatility | i 7% to i 22% ( i 8%) | i 16%
to i 37% ( i 20%) | ||||||
Nonderivative trading liabilities —Corporate equities | $ | i 63 | $ | i 36 | ||||
Comparable pricing: | ||||||||
Equity price | i i 100 / % | N/M | ||||||
Securities sold under agreements to repurchase | $ | i 444 | $ | i — | ||||
Discounted cash flow: | ||||||||
Funding spread | i 107 to i 127
bps ( i 115 bps) | N/A | ||||||
Other secured financings | $ | i 516 | $ | i 109 | ||||
Discounted
cash flow: | ||||||||
Funding spread | i i 111 /
bps ( i 111 bps) | i 111 to i 124
bps ( i 117 bps) | ||||||
Comparable pricing: | ||||||||
Loan price | i 30
to i 101 points ( i 56 points) | N/A | ||||||
Borrowings | $ | i 4,374 | $ | i 4,088 | ||||
Option model: | ||||||||
Equity volatility | i 6% to i 66%
( i 23%) | i 5% to i 44%
( i 21%) | ||||||
Equity volatility skew | - i 2% to i 0%
( i 0%) | - i 2% to i 0%
( i 0%) | ||||||
Equity correlation | i 37% to i 95%
( i 78%) | i 38% to i 94%
( i 78%) | ||||||
Equity - FX correlation | - i 72% to i 13%
(- i 24%) | - i 75% to i 26%
(- i 25%) | ||||||
IR FX Correlation | - i 28%
to i 6% (- i 6% / - i 6%) | - i 26%
to i 10% (- i 7% / - i 7%) | ||||||
Nonrecurring Fair Value Measurement | ||||||||
Loans | $ | i 3,134 | $ | i 1,500 | ||||
Corporate loan model: | ||||||||
Credit spread | i 36 to i 636 bps ( i 336
bps) | i 69 to i 446 bps ( i 225
bps) | ||||||
Warehouse model: | ||||||||
Credit spread | i 200 to i 413
bps ( i 368 bps) | i 287 to i 318
bps ( i 297 bps) | ||||||
Comparable pricing: | ||||||||
Bond Price | i 88
to i 99 bps ( i 94 bps) | N/M (N/M) |
December 2020 Form 10-K | 106 |
Notes to Consolidated Financial Statements |
At December 31, 2020 | At December 31, 2019 | |||||||||||||
$ in millions | Carrying Value | Commitment | Carrying Value | Commitment | ||||||||||
Private equity | $ | i 2,367 | $ | i 644 | $ | i 2,078 | $ | i 450 | ||||||
Real estate | i 1,403 | i 136 | i 1,349 | i 150 | ||||||||||
Hedge1 | i 59 | i — | i 94 | i 4 | ||||||||||
Total | $ | i 3,829 | $ | i 780 | $ | i 3,521 | $ | i 604 |
107 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
Carrying Value at December 31, 2020 | ||||||||
$ in millions | Private Equity | Real Estate | ||||||
Less than 5 years | $ | i 1,480 | $ | i 416 | ||||
5-10 years | i 736 | i 374 | ||||||
Over 10 years | i 151 | i 613 | ||||||
Total | $ | i 2,367 | $ | i 1,403 |
At December 31, 2020 | |||||||||||
$ in millions | Level 2 | Level 31 | Total | ||||||||
Assets | |||||||||||
Loans | $ | i 2,566 | $ | i 3,134 | $ | i 5,700 | |||||
Other assets—Other investments | i — | i 16 | i 16 | ||||||||
Other assets—ROU assets | i 21 | i — | i 21 | ||||||||
Total | $ | i 2,587 | $ | i 3,150 | $ | i 5,737 | |||||
Liabilities | |||||||||||
Other
liabilities and accrued expenses—Lending commitments | $ | i 193 | $ | i 72 | $ | i 265 | |||||
Total | $ | i 193 | $ | i 72 | $ | i 265 |
At December 31, 2019 | |||||||||||
$ in millions | Level 2 | Level 31 | Total | ||||||||
Assets | |||||||||||
Loans | $ | i 1,543 | $ | i 1,500 | $ | i 3,043 | |||||
Other assets—Other investments | i — | i 113 | i 113 | ||||||||
Total | $ | i 1,543 | $ | i 1,613 | $ | i 3,156 | |||||
Liabilities | |||||||||||
Other
liabilities and accrued expenses—Lending commitments | $ | i 132 | $ | i 69 | $ | i 201 | |||||
Total | $ | i 132 | $ | i 69 | $ | i 201 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Assets | |||||||||||
Loans2 | $ | ( i 354) | $ | i 18 | $ | ( i 68) | |||||
Intangibles | ( i 2) | i — | i — | ||||||||
Other
assets—Other investments3 | ( i 56) | ( i 56) | ( i 56) | ||||||||
Other
assets—Premises, equipment and software4 | ( i 45) | ( i 22) | ( i 46) | ||||||||
Other
assets—ROU assets5 | ( i 23) | i — | i — | ||||||||
Total | $ | ( i 480) | $ | ( i 60) | $ | ( i 170) | |||||
Liabilities | |||||||||||
Other
liabilities and accrued expenses—Lending commitments2 | $ | ( i 5) | $ | i 87 | $ | ( i 48) | |||||
Total | $ | ( i 5) | $ | i 87 | $ | ( i 48) |
At December 31, 2020 | |||||||||||||||||
Carrying Value | Fair Value | ||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | i 105,654 | $ | i 105,654 | $ | i — | $ | i — | $ | i 105,654 | |||||||
Investment
securities—HTM | i 71,771 | i 31,239 | i 42,281 | i 900 | i 74,420 | ||||||||||||
Securities
purchased under agreements to resell | i 116,219 | i — | i 114,046 | i 2,173 | i 116,219 | ||||||||||||
Securities borrowed | i 112,391 | i — | i 112,392 | i — | i 112,392 | ||||||||||||
Customer and other
receivables1 | i 92,907 | i — | i 89,832 | i 3,041 | i 92,873 | ||||||||||||
Loans2 | i 150,597 | i — | i 16,635 | i 135,277 | i 151,912 | ||||||||||||
Other assets | i 485 | i — | i 485 | i — | i 485 | ||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | $ | i 307,261 | $ | i — | $ | i 307,807 | $ | i — | $ | i 307,807 | |||||||
Securities sold under agreements to repurchase | i 49,472 | i — | i 49,315 | i 195 | i 49,510 | ||||||||||||
Securities loaned | i 7,731 | i — | i 7,731 | i — | i 7,731 | ||||||||||||
Other
secured financings | i 4,162 | i — | i 4,162 | i — | i 4,162 | ||||||||||||
Customer
and other payables1 | i 224,951 | i — | i 224,951 | i — | i 224,951 | ||||||||||||
Borrowings | i 143,378 | i — | i 150,824 | i 5 | i 150,829 | ||||||||||||
Commitment Amount | |||||||||||||||||
Lending
commitments3 | $ | i 125,498 | $ | i — | $ | i 709 | $ | i 395 | $ | i 1,104 |
December 2020 Form 10-K | 108 |
Notes to Consolidated Financial Statements |
At December 31, 2019 | |||||||||||||||||
Carrying Value | Fair Value | ||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | i 82,171 | $ | i 82,171 | $ | i — | $ | i — | $ | i 82,171 | |||||||
Investment
securities—HTM | i 43,502 | i 30,661 | i 12,683 | i 789 | i 44,133 | ||||||||||||
Securities
purchased under agreements to resell | i 88,220 | i — | i 86,794 | i 1,442 | i 88,236 | ||||||||||||
Securities borrowed | i 106,549 | i — | i 106,551 | i — | i 106,551 | ||||||||||||
Customer and other
receivables1 | i 51,134 | i — | i 48,215 | i 2,872 | i 51,087 | ||||||||||||
Loans2 | i 130,637 | i — | i 22,293 | i 108,059 | i 130,352 | ||||||||||||
Other assets | i 495 | i — | i 495 | i — | i 495 | ||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | $ | i 188,257 | $ | i — | $ | i 188,639 | $ | i — | $ | i 188,639 | |||||||
Securities sold under
agreements to repurchase | i 53,467 | i — | i 53,486 | i — | i 53,486 | ||||||||||||
Securities loaned | i 8,506 | i — | i 8,506 | i — | i 8,506 | ||||||||||||
Other
secured financings | i 6,889 | i — | i 6,800 | i 92 | i 6,892 | ||||||||||||
Customer
and other payables1 | i 195,035 | i — | i 195,035 | i — | i 195,035 | ||||||||||||
Borrowings | i 128,166 | i — | i 133,563 | i 10 | i 133,573 | ||||||||||||
Commitment Amount | |||||||||||||||||
Lending
commitments3 | $ | i 119,004 | $ | i — | $ | i 748 | $ | i 338 | $ | i 1,086 |
$ in millions | At | At | ||||||
Business Unit Responsible for Risk Management | ||||||||
Equity | $ | i 33,952 | $ | i 30,214 | ||||
Interest rates | i 31,222 | i 27,298 | ||||||
Commodities | i 5,078 | i 4,501 | ||||||
Credit | i 1,344 | i 1,246 | ||||||
Foreign exchange | i 2,105 | i 1,202 | ||||||
Total | $ | i 73,701 | $ | i 64,461 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Trading revenues | $ | ( i 5,135) | $ | ( i 6,932) | $ | i 2,679 | |||||
Interest expense | i 341 | i 375 | i 321 | ||||||||
Net
revenues1 | $ | ( i 5,476) | $ | ( i 7,307) | $ | i 2,358 |
$ in millions | Trading Revenues | OCI | ||||||
2020 | ||||||||
Loans
and other debt1 | $ | ( i 116) | $ | i — | ||||
Lending commitments | ( i 3) | i — | ||||||
Deposits | i — | ( i 19) | ||||||
Borrowings | ( i 26) | ( i 1,340) | ||||||
2019 | ||||||||
Loans
and other debt1 | $ | i 223 | $ | i — | ||||
Lending commitments | ( i 2) | i — | ||||||
Deposits | i — | ( i 30) | ||||||
Borrowings | ( i 11) | ( i 2,140) | ||||||
2018 | ||||||||
Loans
and other debt1 | $ | i 165 | $ | i — | ||||
Lending commitments | ( i 3) | i — | ||||||
Deposits | i — | i 9 | ||||||
Borrowings | ( i 24) | i 1,962 | ||||||
Other | ( i 32) | i 32 |
$ in millions | At | At | ||||||
Cumulative pre-tax DVA gain (loss) recognized in AOCI | $ | ( i 3,357) | $ | ( i 1,998) |
$ in millions | At | At | ||||||
Loans
and other debt2 | $ | i 14,042 | $ | i 13,037 | ||||
Nonaccrual
loans2 | i 11,551 | i 10,849 | ||||||
Borrowings3 | ( i 3,773) | ( i 1,665) |
$ in millions | At | At | ||||||
Nonaccrual loans | $ | i 1,407 | $ | i 1,100 | ||||
Nonaccrual
loans 90 or more days past due | $ | i 239 | $ | i 330 |
109 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
Assets | ||||||||||||||
$ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | i 946 | $ | i 2 | $ | i — | $ | i 948 | ||||||
Foreign exchange | i 5 | i 2 | i — | i 7 | ||||||||||
Total | i 951 | i 4 | i — | i 955 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Interest rate | i 221,895 | i 10,343 | i 300 | i 232,538 | ||||||||||
Credit | i 5,343 | i 2,198 | i — | i 7,541 | ||||||||||
Foreign exchange | i 92,334 | i 1,639 | i 79 | i 94,052 | ||||||||||
Equity | i 34,278 | i — | i 34,166 | i 68,444 | ||||||||||
Commodity and other | i 11,095 | i — | i 3,554 | i 14,649 | ||||||||||
Total | i 364,945 | i 14,180 | i 38,099 | i 417,224 | ||||||||||
Total gross derivatives | $ | i 365,896 | $ | i 14,184 | $ | i 38,099 | $ | i 418,179 | ||||||
Amounts offset | ||||||||||||||
Counterparty netting | ( i 276,682) | ( i 11,601) | ( i 35,260) | ( i 323,543) | ||||||||||
Cash collateral netting | ( i 54,921) | ( i 1,865) | i — | ( i 56,786) | ||||||||||
Total in Trading assets | $ | i 34,293 | $ | i 718 | $ | i 2,839 | $ | i 37,850 | ||||||
Amounts
not offset1 | ||||||||||||||
Financial instruments collateral | ( i 13,319) | i — | i — | ( i 13,319) | ||||||||||
Other cash collateral | ( i 391) | i — | i — | ( i 391) | ||||||||||
Net amounts | $ | i 20,583 | $ | i 718 | $ | i 2,839 | $ | i 24,140 | ||||||
Net
amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | i 3,743 |
Liabilities | ||||||||||||||
$ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | i — | $ | i 19 | $ | i — | $ | i 19 | ||||||
Foreign exchange | i 291 | i 99 | i — | i 390 | ||||||||||
Total | i 291 | i 118 | i — | i 409 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Interest rate | i 210,015 | i 7,965 | i 639 | i 218,619 | ||||||||||
Credit | i 5,293 | i 2,859 | i — | i 8,152 | ||||||||||
Foreign exchange | i 92,975 | i 1,500 | i 43 | i 94,518 | ||||||||||
Equity | i 49,943 | i — | i 36,585 | i 86,528 | ||||||||||
Commodity and other | i 8,831 | i — | i 3,359 | i 12,190 | ||||||||||
Total | i 367,057 | i 12,324 | i 40,626 | i 420,007 | ||||||||||
Total gross derivatives | $ | i 367,348 | $ | i 12,442 | $ | i 40,626 | $ | i 420,416 | ||||||
Amounts offset | ||||||||||||||
Counterparty netting | ( i 276,682) | ( i 11,601) | ( i 35,260) | ( i 323,543) | ||||||||||
Cash collateral netting | ( i 51,112) | ( i 823) | i — | ( i 51,935) | ||||||||||
Total in Trading liabilities | $ | i 39,554 | $ | i 18 | $ | i 5,366 | $ | i 44,938 | ||||||
Amounts
not offset1 | ||||||||||||||
Financial instruments collateral | ( i 10,598) | i — | ( i 1,520) | ( i 12,118) | ||||||||||
Other cash collateral | ( i 62) | ( i 3) | i — | ( i 65) | ||||||||||
Net amounts | $ | i 28,894 | $ | i 15 | $ | i 3,846 | $ | i 32,755 | ||||||
Net
amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | i 6,746 |
December 2020 Form 10-K | 110 |
Notes to Consolidated Financial Statements |
Assets | ||||||||||||||
$ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | i 673 | $ | i — | $ | i — | $ | i 673 | ||||||
Foreign exchange | i 41 | i 1 | i — | i 42 | ||||||||||
Total | i 714 | i 1 | i — | i 715 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Interest rate | i 179,450 | i 4,839 | i 519 | i 184,808 | ||||||||||
Credit | i 4,895 | i 2,417 | i — | i 7,312 | ||||||||||
Foreign exchange | i 62,957 | i 1,399 | i 22 | i 64,378 | ||||||||||
Equity | i 27,621 | i — | i 23,447 | i 51,068 | ||||||||||
Commodity and other | i 9,306 | i — | i 1,952 | i 11,258 | ||||||||||
Total | i 284,229 | i 8,655 | i 25,940 | i 318,824 | ||||||||||
Total gross derivatives | $ | i 284,943 | $ | i 8,656 | $ | i 25,940 | $ | i 319,539 | ||||||
Amounts offset | ||||||||||||||
Counterparty netting | ( i 213,710) | ( i 7,294) | ( i 24,037) | ( i 245,041) | ||||||||||
Cash collateral netting | ( i 41,222) | ( i 1,275) | i — | ( i 42,497) | ||||||||||
Total in Trading assets | $ | i 30,011 | $ | i 87 | $ | i 1,903 | $ | i 32,001 | ||||||
Amounts
not offset1 | ||||||||||||||
Financial instruments collateral | ( i 15,596) | i — | i — | ( i 15,596) | ||||||||||
Other cash collateral | ( i 46) | i — | i — | ( i 46) | ||||||||||
Net amounts | $ | i 14,369 | $ | i 87 | $ | i 1,903 | $ | i 16,359 | ||||||
Net
amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | i 1,900 |
Liabilities | ||||||||||||||
$ in millions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | i 1 | $ | i — | $ | i — | $ | i 1 | ||||||
Foreign exchange | i 121 | i 38 | i — | i 159 | ||||||||||
Total | i 122 | i 38 | i — | i 160 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Interest rate | i 168,597 | i 3,597 | i 436 | i 172,630 | ||||||||||
Credit | i 4,798 | i 3,123 | i — | i 7,921 | ||||||||||
Foreign exchange | i 65,965 | i 1,492 | i 39 | i 67,496 | ||||||||||
Equity | i 30,135 | i — | i 22,733 | i 52,868 | ||||||||||
Commodity and other | i 7,713 | i — | i 1,911 | i 9,624 | ||||||||||
Total | i 277,208 | i 8,212 | i 25,119 | i 310,539 | ||||||||||
Total gross derivatives | $ | i 277,330 | $ | i 8,250 | $ | i 25,119 | $ | i 310,699 | ||||||
Amounts offset | ||||||||||||||
Counterparty netting | ( i 213,710) | ( i 7,294) | ( i 24,037) | ( i 245,041) | ||||||||||
Cash collateral netting | ( i 36,392) | ( i 832) | i — | ( i 37,224) | ||||||||||
Total in Trading liabilities | $ | i 27,228 | $ | i 124 | $ | i 1,082 | $ | i 28,434 | ||||||
Amounts
not offset1 | ||||||||||||||
Financial instruments collateral | ( i 7,747) | i — | ( i 287) | ( i 8,034) | ||||||||||
Other cash collateral | ( i 14) | i — | i — | ( i 14) | ||||||||||
Net amounts | $ | i 19,467 | $ | i 124 | $ | i 795 | $ | i 20,386 | ||||||
Net
amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ | i 3,680 |
Assets | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | i 6 | $ | i 123 | $ | i — | $ | i 129 | ||||||
Foreign exchange | i 2 | i — | i — | i 2 | ||||||||||
Total | i 8 | i 123 | i — | i 131 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Interest rate | i 3,847 | i 6,946 | i 409 | i 11,202 | ||||||||||
Credit | i 140 | i 88 | i — | i 228 | ||||||||||
Foreign exchange | i 3,046 | i 103 | i 10 | i 3,159 | ||||||||||
Equity | i 444 | i — | i 367 | i 811 | ||||||||||
Commodity and other | i 107 | i — | i 68 | i 175 | ||||||||||
Total | i 7,584 | i 7,137 | i 854 | i 15,575 | ||||||||||
Total gross derivatives | $ | i 7,592 | $ | i 7,260 | $ | i 854 | $ | i 15,706 |
Liabilities | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | i — | $ | i 80 | $ | i — | $ | i 80 | ||||||
Foreign exchange | i 11 | i 3 | i — | i 14 | ||||||||||
Total | i 11 | i 83 | i — | i 94 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Interest rate | i 4,000 | i 6,915 | i 511 | i 11,426 | ||||||||||
Credit | i 143 | i 98 | i — | i 241 | ||||||||||
Foreign exchange | i 3,180 | i 102 | i 11 | i 3,293 | ||||||||||
Equity | i 474 | i — | i 591 | i 1,065 | ||||||||||
Commodity and other | i 93 | i — | i 68 | i 161 | ||||||||||
Total | i 7,890 | i 7,115 | i 1,181 | i 16,186 | ||||||||||
Total gross derivatives | $ | i 7,901 | $ | i 7,198 | $ | i 1,181 | $ | i 16,280 |
111 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
Assets | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | i 14 | $ | i 94 | $ | i — | $ | i 108 | ||||||
Foreign exchange | i 2 | i — | i — | i 2 | ||||||||||
Total | i 16 | i 94 | i — | i 110 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Interest rate | i 4,230 | i 7,398 | i 732 | i 12,360 | ||||||||||
Credit | i 136 | i 79 | i — | i 215 | ||||||||||
Foreign exchange | i 2,667 | i 91 | i 10 | i 2,768 | ||||||||||
Equity | i 429 | i — | i 419 | i 848 | ||||||||||
Commodity and other | i 99 | i — | i 61 | i 160 | ||||||||||
Total | i 7,561 | i 7,568 | i 1,222 | i 16,351 | ||||||||||
Total gross derivatives | $ | i 7,577 | $ | i 7,662 | $ | i 1,222 | $ | i 16,461 |
Liabilities | ||||||||||||||
$ in billions | Bilateral OTC | Cleared OTC | Exchange- Traded | Total | ||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ | i — | $ | i 71 | $ | i — | $ | i 71 | ||||||
Foreign exchange | i 9 | i 2 | i — | i 11 | ||||||||||
Total | i 9 | i 73 | i — | i 82 | ||||||||||
Not designated as accounting hedges | ||||||||||||||
Interest rate | i 4,185 | i 6,866 | i 666 | i 11,717 | ||||||||||
Credit | i 153 | i 84 | i — | i 237 | ||||||||||
Foreign exchange | i 2,841 | i 91 | i 14 | i 2,946 | ||||||||||
Equity | i 455 | i — | i 515 | i 970 | ||||||||||
Commodity and other | i 85 | i — | i 61 | i 146 | ||||||||||
Total | i 7,719 | i 7,041 | i 1,256 | i 16,016 | ||||||||||
Total gross derivatives | $ | i 7,728 | $ | i 7,114 | $ | i 1,256 | $ | i 16,098 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Fair value hedges—Recognized in Interest income | |||||||||||
Interest rate contracts | $ | i 75 | $ | ( i 10) | $ | ( i 4) | |||||
Investment Securities—AFS | ( i 33) | i 10 | i 4 | ||||||||
Fair value hedges—Recognized in Interest expense | |||||||||||
Interest rate contracts | $ | i 4,678 | $ | i 4,212 | $ | ( i 1,529) | |||||
Deposits1 | ( i 100) | i 7 | i — | ||||||||
Borrowings | ( i 4,692) | ( i 4,288) | i 1,511 | ||||||||
Net investment hedges—Foreign exchange contracts | |||||||||||
Recognized in OCI | $ | ( i 366) | $ | i 14 | $ | i 295 | |||||
Forward
points excluded from hedge effectiveness testing—Recognized in Interest income | i 16 | i 136 | i 68 |
$ in millions | At | At | ||||||
Investment securities—AFS | ||||||||
Amortized cost basis currently or previously hedged | $ | i 16,288 | $ | i 917 | ||||
Basis
adjustments included in amortized cost1 | $ | ( i 39) | $ | i 14 | ||||
Deposits | ||||||||
Carrying amount currently or previously hedged | $ | i 15,059 | $ | i 5,435 | ||||
Basis
adjustments included in carrying amount1 | $ | i 93 | $ | ( i 7) | ||||
Borrowings | ||||||||
Carrying amount currently or previously hedged | $ | i 114,349 | $ | i 102,456 | ||||
Basis adjustments included in carrying amount—Outstanding hedges | $ | i 6,575 | $ | i 2,593 | ||||
Basis
adjustments included in carrying amount—Terminated hedges | $ | ( i 756) | $ | i — |
$ in millions | At | At | ||||||
Net derivative liabilities with credit risk- related contingent features | $ | i 30,421 | $ | i 21,620 | ||||
Collateral posted | i 23,842 | i 17,392 |
$ in millions | At | ||||
One-notch downgrade | $ | i 316 | |||
Two-notch downgrade | i 134 | ||||
Bilateral downgrade agreements included in the amounts above1 | $ | i 352 |
December 2020 Form 10-K | 112 |
Notes to Consolidated Financial Statements |
Years to Maturity at December 31, 2020 | |||||||||||||||||
$ in billions | < 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||
Single-name CDS | |||||||||||||||||
Investment grade | $ | i 9 | $ | i 19 | $ | i 32 | $ | i 9 | $ | i 69 | |||||||
Non-investment grade | i 7 | i 10 | i 17 | i 2 | i 36 | ||||||||||||
Total | $ | i 16 | $ | i 29 | $ | i 49 | $ | i 11 | $ | i 105 | |||||||
Index and basket CDS | |||||||||||||||||
Investment grade | $ | i 2 | $ | i 5 | $ | i 39 | $ | i 14 | $ | i 60 | |||||||
Non-investment grade | i 6 | i 9 | i 29 | i 14 | i 58 | ||||||||||||
Total | $ | i 8 | $ | i 14 | $ | i 68 | $ | i 28 | $ | i 118 | |||||||
Total CDS sold | $ | i 24 | $ | i 43 | $ | i 117 | $ | i 39 | $ | i 223 | |||||||
Other credit contracts | i — | i — | i — | i — | i — | ||||||||||||
Total credit protection sold | $ | i 24 | $ | i 43 | $ | i 117 | $ | i 39 | $ | i 223 | |||||||
CDS protection sold with identical protection purchased | $ | i 196 |
Years to Maturity at December 31, 2019 | |||||||||||||||||
$ in billions | < 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||
Single-name CDS | |||||||||||||||||
Investment grade | $ | i 16 | $ | i 17 | $ | i 33 | $ | i 9 | $ | i 75 | |||||||
Non-investment grade | i 9 | i 9 | i 16 | i 1 | i 35 | ||||||||||||
Total | $ | i 25 | $ | i 26 | $ | i 49 | $ | i 10 | $ | i 110 | |||||||
Index and basket CDS | |||||||||||||||||
Investment grade | $ | i 4 | $ | i 7 | $ | i 46 | $ | i 11 | $ | i 68 | |||||||
Non-investment grade | i 7 | i 4 | i 17 | i 10 | i 38 | ||||||||||||
Total | $ | i 11 | $ | i 11 | $ | i 63 | $ | i 21 | $ | i 106 | |||||||
Total CDS sold | $ | i 36 | $ | i 37 | $ | i 112 | $ | i 31 | $ | i 216 | |||||||
Other credit contracts | i — | i — | i — | i — | i — | ||||||||||||
Total credit protection sold | $ | i 36 | $ | i 37 | $ | i 112 | $ | i 31 | $ | i 216 | |||||||
CDS protection sold with identical protection purchased | $ | i 187 |
$ in millions | At | At | ||||||
Single-name CDS | ||||||||
Investment grade | $ | i 1,230 | $ | i 1,057 | ||||
Non-investment grade | ( i 22) | ( i 540) | ||||||
Total | $ | i 1,208 | $ | i 517 | ||||
Index and basket CDS | ||||||||
Investment grade | $ | i 843 | $ | i 1,052 | ||||
Non-investment grade | ( i 824) | i 134 | ||||||
Total | $ | i 19 | $ | i 1,186 | ||||
Total CDS sold | $ | i 1,227 | $ | i 1,703 | ||||
Other credit contracts | ( i 4) | ( i 17) | ||||||
Total credit protection sold | $ | i 1,223 | $ | i 1,686 |
Notional | ||||||||
$ in billions | At December 31, 2020 | At December 31, 2019 | ||||||
Single name | $ | i 116 | $ | i 118 | ||||
Index and basket | i 116 | i 103 | ||||||
Tranched index and basket | i 14 | i 15 | ||||||
Total | $ | i 246 | $ | i 236 |
Fair Value Asset (Liability) | ||||||||
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Single name | $ | ( i 1,452) | $ | ( i 723) | ||||
Index and basket | ( i 57) | ( i 1,139) | ||||||
Tranched index and basket | ( i 329) | ( i 450) | ||||||
Total | $ | ( i 1,838) | $ | ( i 2,312) |
113 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
At December 31, 2020 | ||||||||||||||
$ in millions | Amortized Cost1 | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||
AFS securities | ||||||||||||||
U.S. government and agency securities: | ||||||||||||||
U.S. Treasury securities | $ | i 45,345 | $ | i 1,010 | $ | i — | $ | i 46,355 | ||||||
U.S. agency securities2 | i 37,389 | i 762 | i 25 | i 38,126 | ||||||||||
Total U.S. government and
agency securities | i 82,734 | i 1,772 | i 25 | i 84,481 | ||||||||||
Corporate and other debt: | ||||||||||||||
Agency CMBS | i 19,982 | i 465 | i 9 | i 20,438 | ||||||||||
Corporate bonds | i 1,694 | i 42 | i — | i 1,736 | ||||||||||
State
and municipal securities | i 1,461 | i 103 | i 1 | i 1,563 | ||||||||||
FFELP
student loan ABS3 | i 1,735 | i 7 | i 26 | i 1,716 | ||||||||||
Other ABS | i 449 | i — | i — | i 449 | ||||||||||
Total corporate and other debt | i 25,321 | i 617 | i 36 | i 25,902 | ||||||||||
Total AFS securities | i 108,055 | i 2,389 | i 61 | i 110,383 | ||||||||||
HTM securities | ||||||||||||||
U.S. government and agency securities: | ||||||||||||||
U.S. Treasury securities | i 29,346 | i 1,893 | i — | i 31,239 | ||||||||||
U.S.
agency securities2 | i 38,951 | i 704 | i 8 | i 39,647 | ||||||||||
Total
U.S. government and agency securities | i 68,297 | i 2,597 | i 8 | i 70,886 | ||||||||||
Corporate and other debt: | ||||||||||||||
Agency CMBS | i 2,632 | i 4 | i 2 | i 2,634 | ||||||||||
Non-agency CMBS | i 842 | i 58 | i — | i 900 | ||||||||||
Total Corporate and other debt | i 3,474 | i 62 | i 2 | i 3,534 | ||||||||||
Total HTM securities | i 71,771 | i 2,659 | i 10 | i 74,420 | ||||||||||
Total
investment securities | $ | i 179,826 | $ | i 5,048 | $ | i 71 | $ | i 184,803 |
At December 31, 2019 | ||||||||||||||
$ in millions | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||
AFS securities | ||||||||||||||
U.S. government and agency securities: | ||||||||||||||
U.S. Treasury securities | $ | i 32,465 | $ | i 224 | $ | i 111 | $ | i 32,578 | ||||||
U.S.
agency securities2 | i 20,725 | i 249 | i 100 | i 20,874 | ||||||||||
Total U.S. government and agency
securities | i 53,190 | i 473 | i 211 | i 53,452 | ||||||||||
Corporate and other debt: | ||||||||||||||
Agency CMBS | i 4,810 | i 55 | i 57 | i 4,808 | ||||||||||
Corporate bonds | i 1,891 | i 17 | i 1 | i 1,907 | ||||||||||
State
and municipal securities | i 481 | i 22 | i — | i 503 | ||||||||||
FFELP student loan
ABS3 | i 1,580 | i 1 | i 28 | i 1,553 | ||||||||||
Total corporate and other debt | i 8,762 | i 95 | i 86 | i 8,771 | ||||||||||
Total AFS securities | i 61,952 | i 568 | i 297 | i 62,223 | ||||||||||
HTM securities | ||||||||||||||
U.S. government and agency securities: | ||||||||||||||
U.S. Treasury securities | i 30,145 | i 568 | i 52 | i 30,661 | ||||||||||
U.S.
agency securities2 | i 12,589 | i 151 | i 57 | i 12,683 | ||||||||||
Total
U.S. government and agency securities | i 42,734 | i 719 | i 109 | i 43,344 | ||||||||||
Corporate and other debt: | ||||||||||||||
Non-agency CMBS | i 768 | i 22 | i 1 | i 789 | ||||||||||
Total HTM securities | i 43,502 | i 741 | i 110 | i 44,133 | ||||||||||
Total
investment securities | $ | i 105,454 | $ | i 1,309 | $ | i 407 | $ | i 106,356 |
December 2020 Form 10-K | 114 |
Notes to Consolidated Financial Statements |
At December 31, 2020 | At December 31, 2019 | |||||||||||||
$ in millions | Fair Value | Gross Unrealized Losses | Fair
Value | Gross Unrealized Losses | ||||||||||
U.S. government and agency securities: | ||||||||||||||
U.S. Treasury securities | ||||||||||||||
Less than12 months | $ | i 151 | $ | i — | $ | i 4,793 | $ | i 28 | ||||||
12
months or longer | i — | i — | i 7,904 | i 83 | ||||||||||
Total | i 151 | i — | i 12,697 | i 111 | ||||||||||
U.S. agency securities | ||||||||||||||
Less than12 months | i 5,808 | i 22 | i 2,641 | i 20 | ||||||||||
12 months or longer | i 1,168 | i 3 | i 7,697 | i 80 | ||||||||||
Total | i 6,976 | i 25 | i 10,338 | i 100 | ||||||||||
Total U.S. government and agency securities: | ||||||||||||||
Less than12 months | i 5,959 | i 22 | i 7,434 | i 48 | ||||||||||
12 months or longer | i 1,168 | i 3 | i 15,601 | i 163 | ||||||||||
Total | i 7,127 | i 25 | i 23,035 | i 211 | ||||||||||
Corporate
and other debt: | ||||||||||||||
Agency CMBS | ||||||||||||||
Less than12 months | i 2,779 | i 9 | i 2,294 | i 26 | ||||||||||
12 months or longer | i 46 | i — | i 681 | i 31 | ||||||||||
Total | i 2,825 | i 9 | i 2,975 | i 57 | ||||||||||
Corporate bonds | ||||||||||||||
Less than12 months | i — | i — | i 194 | i 1 | ||||||||||
12 months or longer | i 31 | i — | i 44 | i — | ||||||||||
Total | i 31 | i — | i 238 | i 1 | ||||||||||
State
and municipal securities | ||||||||||||||
Less than12 months | i 86 | i — | i — | i — | ||||||||||
12 months or longer | i 36 | i 1 | i — | i — | ||||||||||
Total | i 122 | i 1 | i — | i — | ||||||||||
FFELP student loan ABS | ||||||||||||||
Less than12 months | i — | i — | i 91 | i — | ||||||||||
12 months or longer | i 1,077 | i 26 | i 1,165 | i 28 | ||||||||||
Total | i 1,077 | i 26 | i 1,256 | i 28 | ||||||||||
Total
Corporate and other debt: | ||||||||||||||
Less than12 months | i 2,865 | i 9 | i 2,579 | i 27 | ||||||||||
12 months or longer | i 1,190 | i 27 | i 1,890 | i 59 | ||||||||||
Total | i 4,055 | i 36 | i 4,469 | i 86 | ||||||||||
Total
AFS securities in an unrealized loss position | ||||||||||||||
Less than12 months | i 8,824 | i 31 | i 10,013 | i 75 | ||||||||||
12 months or longer | i 2,358 | i 30 | i 17,491 | i 222 | ||||||||||
Total | $ | i 11,182 | $ | i 61 | $ | i 27,504 | $ | i 297 |
At December 31, 2020 | |||||||||||
$ in millions | Amortized Cost1 | Fair Value | Annualized Average Yield | ||||||||
AFS securities | |||||||||||
U.S. government and agency securities: | |||||||||||
U.S. Treasury securities: | |||||||||||
Due within 1 year | $ | i 14,813 | $ | i 14,888 | i 1.1 | % | |||||
After 1 year through 5 years | i 25,630 | i 26,401 | i 1.4 | % | |||||||
After 5 years through 10 years | i 4,902 | i 5,066 | i 1.2 | % | |||||||
Total | i 45,345 | i 46,355 | |||||||||
U.S. agency securities: | |||||||||||
Due within 1 year | i 6 | i 6 | i 1.4 | % | |||||||
After 1 year through 5 years | i 173 | i 177 | i 1.5 | % | |||||||
After 5 years through 10 years | i 1,247 | i 1,283 | i 1.7 | % | |||||||
After 10 years | i 35,963 | i 36,660 | i 1.5 | % | |||||||
Total | i 37,389 | i 38,126 | |||||||||
Total U.S. government and agency securities | i 82,734 | i 84,481 | i 1.4 | % | |||||||
Corporate and other debt: | |||||||||||
Agency CMBS: | |||||||||||
Due within 1 year | i 95 | i 96 | i 1.2 | % | |||||||
After 1 year through 5 years | i 1,385 | i 1,400 | i 1.0 | % | |||||||
After 5 years through 10 years | i 14,123 | i 14,544 | i 1.4 | % | |||||||
After 10 years | i 4,379 | i 4,398 | i 1.3 | % | |||||||
Total | i 19,982 | i 20,438 | |||||||||
Corporate bonds: | |||||||||||
Due within 1 year | i 286 | i 289 | i 2.4 | % | |||||||
After 1 year through 5 years | i 1,193 | i 1,224 | i 2.6 | % | |||||||
After 5 years through 10 years | i 204 | i 212 | i 2.6 | % | |||||||
After 10 years | i 11 | i 11 | i 1.7 | % | |||||||
Total | i 1,694 | i 1,736 | |||||||||
State and municipal securities: | |||||||||||
Due within 1 year | i 3 | i 3 | i 1.8 | % | |||||||
After 1 year through 5 years | i 28 | i 29 | i 1.7 | % | |||||||
After 5 years through 10 years | i 87 | i 91 | i 2.4 | % | |||||||
After 10 years | i 1,343 | i 1,440 | i 2.7 | % | |||||||
Total | i 1,461 | i 1,563 | |||||||||
FFELP student loan ABS: | |||||||||||
After 1 year through 5 years | i 90 | i 86 | i 0.8 | % | |||||||
After 5 years through 10 years | i 239 | i 228 | i 0.9 | % | |||||||
After 10 years | i 1,406 | i 1,402 | i 1.2 | % | |||||||
Total | i 1,735 | i 1,716 | |||||||||
Other ABS: | |||||||||||
Due within 1 year | i 3 | i 3 | i 0.3 | % | |||||||
After 1 year through 5 years | i 446 | i 446 | i 0.4 | % | |||||||
Total | i 449 | i 449 | |||||||||
Total corporate and other debt | i 25,321 | i 25,902 | i 1.5 | % | |||||||
Total AFS securities | i 108,055 | i 110,383 | i 1.4 | % |
115 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
At December 31, 2020 | |||||||||||
$ in millions | Amortized Cost1 | Fair Value | Annualized Average Yield | ||||||||
HTM securities | |||||||||||
U.S. government and agency securities: | |||||||||||
U.S. Treasury securities: | |||||||||||
Due within 1 year | $ | i 3,146 | $ | i 3,174 | i 2.3 | % | |||||
After 1 year through 5 years | i 17,302 | i 18,111 | i 1.9 | % | |||||||
After 5 years through 10 years | i 7,816 | i 8,655 | i 2.2 | % | |||||||
After 10 years | i 1,082 | i 1,299 | i 2.5 | % | |||||||
Total | i 29,346 | i 31,239 | |||||||||
U.S. agency securities: | |||||||||||
After 5 years through 10 years | i 604 | i 623 | i 2.0 | % | |||||||
After 10 years | i 38,347 | i 39,024 | i 1.6 | % | |||||||
Total | i 38,951 | i 39,647 | |||||||||
Total U.S. government and agency securities | i 68,297 | i 70,886 | i 1.8 | % | |||||||
Corporate and other debt: | |||||||||||
Agency CMBS: | |||||||||||
Due within 1 year | i 21 | i 21 | i 2.4 | % | |||||||
After 1 year through 5 years | i 1,215 | i 1,215 | i 1.4 | % | |||||||
After 5 years through 10 years | i 1,164 | i 1,167 | i 1.3 | % | |||||||
After 10 years | i 232 | i 231 | i 1.6 | % | |||||||
Total | i 2,632 | i 2,634 | i 1.3 | % | |||||||
Non-agency CMBS: | |||||||||||
Due within 1 year | i 153 | i 153 | i 4.5 | % | |||||||
After 1 year through 5 years | i 35 | i 35 | i 3.2 | % | |||||||
After 5 years through 10 years | i 618 | i 671 | i 3.8 | % | |||||||
After 10 years | i 36 | i 41 | i 4.4 | % | |||||||
Total | i 842 | i 900 | i 3.9 | % | |||||||
Total corporate and other debt | i 3,474 | i 3,534 | i 2.0 | % | |||||||
Total HTM securities | i 71,771 | i 74,420 | i 1.8 | % | |||||||
Total investment securities | $ | i 179,826 | $ | i 184,803 | i 1.6 | % |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Gross realized gains | $ | i 168 | $ | i 113 | $ | i 12 | |||||
Gross realized (losses) | ( i 31) | ( i 10) | ( i 4) | ||||||||
Total1 | $ | i 137 | $ | i 103 | $ | i 8 |
At December 31, 2020 | |||||||||||||||||
$ in millions | Gross Amounts | Amounts Offset | Balance Sheet Net Amounts | Amounts Not
Offset1 | Net Amounts | ||||||||||||
Assets | |||||||||||||||||
Securities purchased under agreements to resell | $ | i 264,140 | $ | ( i 147,906) | $ | i 116,234 | $ | ( i 114,108) | $ | i 2,126 | |||||||
Securities
borrowed | i 124,921 | ( i 12,530) | i 112,391 | ( i 107,434) | i 4,957 | ||||||||||||
Liabilities | |||||||||||||||||
Securities
sold under agreements to repurchase | $ | i 198,493 | $ | ( i 147,906) | $ | i 50,587 | $ | ( i 43,960) | $ | i 6,627 | |||||||
Securities loaned | i 20,261 | ( i 12,530) | i 7,731 | ( i 7,430) | i 301 | ||||||||||||
Net
amounts for which master netting agreements are not in place or may not be legally enforceable | |||||||||||||||||
Securities purchased under agreements to resell | $ | i 1,870 | |||||||||||||||
Securities borrowed | i 596 | ||||||||||||||||
Securities sold under agreements to repurchase | i 6,282 | ||||||||||||||||
Securities loaned | i 128 |
December 2020 Form 10-K | 116 |
Notes to Consolidated Financial Statements |
At December 31, 2019 | |||||||||||||||||
$ in millions | Gross Amounts | Amounts Offset | Balance Sheet Net Amounts | Amounts Not Offset1 | Net Amounts | ||||||||||||
Assets | |||||||||||||||||
Securities purchased under agreements to resell | $ | i 247,545 | $ | ( i 159,321) | $ | i 88,224 | $ | ( i 85,200) | $ | i 3,024 | |||||||
Securities
borrowed | i 109,528 | ( i 2,979) | i 106,549 | ( i 101,850) | i 4,699 | ||||||||||||
Liabilities | |||||||||||||||||
Securities
sold under agreements to repurchase | $ | i 213,519 | $ | ( i 159,319) | $ | i 54,200 | $ | ( i 44,549) | $ | i 9,651 | |||||||
Securities loaned | i 11,487 | ( i 2,981) | i 8,506 | ( i 8,324) | i 182 | ||||||||||||
Net
amounts for which master netting agreements are not in place or may not be legally enforceable | |||||||||||||||||
Securities purchased under agreements to resell | $ | i 2,255 | |||||||||||||||
Securities borrowed | i 1,181 | ||||||||||||||||
Securities sold under agreements to repurchase | i 8,033 | ||||||||||||||||
Securities loaned | i 101 |
At December 31, 2020 | |||||||||||||||||
$ in millions | Overnight and Open | Less than 30 Days | 30-90 Days | Over 90 Days | Total | ||||||||||||
Securities sold under agreements to repurchase | $ | i 84,349 | $ | i 60,853 | $ | i 26,221 | $ | i 27,070 | $ | i 198,493 | |||||||
Securities loaned | i 15,267 | i 247 | i — | i 4,747 | i 20,261 | ||||||||||||
Total
included in the offsetting disclosure | $ | i 99,616 | $ | i 61,100 | $ | i 26,221 | $ | i 31,817 | $ | i 218,754 | |||||||
Trading
liabilities— Obligation to return securities received as collateral | i 16,389 | i — | i — | i — | i 16,389 | ||||||||||||
Total | $ | i 116,005 | $ | i 61,100 | $ | i 26,221 | $ | i 31,817 | $ | i 235,143 | |||||||
At December 31, 2019 | |||||||||||||||||
$ in millions | Overnight and Open | Less than 30 Days | 30-90 Days | Over 90 Days | Total | ||||||||||||
Securities sold under agreements to repurchase | $ | i 67,158 | $ | i 81,300 | $ | i 26,904 | $ | i 38,157 | $ | i 213,519 | |||||||
Securities loaned | i 2,378 | i 3,286 | i 516 | i 5,307 | i 11,487 | ||||||||||||
Total
included in the offsetting disclosure | $ | i 69,536 | $ | i 84,586 | $ | i 27,420 | $ | i 43,464 | $ | i 225,006 | |||||||
Trading
liabilities— Obligation to return securities received as collateral | i 23,877 | i — | i — | i — | i 23,877 | ||||||||||||
Total | $ | i 93,413 | $ | i 84,586 | $ | i 27,420 | $ | i 43,464 | $ | i 248,883 |
$ in millions | At | At | ||||||
Securities sold under agreements to repurchase | ||||||||
U.S. Treasury and agency securities | $ | i 94,662 | $ | i 68,895 | ||||
State and municipal securities | i 505 | i 905 | ||||||
Other sovereign government obligations | i 71,140 | i 109,414 | ||||||
ABS | i 1,230 | i 2,218 | ||||||
Corporate and other debt | i 5,287 | i 6,066 | ||||||
Corporate equities | i 24,692 | i 25,563 | ||||||
Other | i 977 | i 458 | ||||||
Total | $ | i 198,493 | $ | i 213,519 | ||||
Securities loaned | ||||||||
Other sovereign government obligations | $ | i 3,430 | $ | i 3,026 | ||||
Corporate equities | i 16,536 | i 8,422 | ||||||
Other | i 295 | i 39 | ||||||
Total | $ | i 20,261 | $ | i 11,487 | ||||
Total included in the offsetting disclosure | $ | i 218,754 | $ | i 225,006 | ||||
Trading liabilities—Obligation to return securities received as collateral | ||||||||
Corporate equities | $ | i 16,365 | $ | i 23,873 | ||||
Other | i 24 | i 4 | ||||||
Total | $ | i 16,389 | $ | i 23,877 | ||||
Total | $ | i 235,143 | $ | i 248,883 |
$ in millions | At | At | ||||||
Trading assets | $ | i 30,954 | $ | i 41,201 | ||||
Loans, before ACL | i — | i 750 | ||||||
Total | $ | i 30,954 | $ | i 41,951 |
$ in millions | At | At | ||||||
Collateral received with right to sell or repledge | $ | i 724,818 | $ | i 679,280 | ||||
Collateral
that was sold or repledged1 | i 523,648 | i 539,412 |
117 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
$ in millions | At | At | ||||||
Segregated securities1 | $ | i 34,106 | $ | i 25,061 |
At | At | |||||||
U.S. government and agency securities and other sovereign government obligations | ||||||||
Trading assets1 | i 10 | % | i 10 | % | ||||
Off
balance sheet—Collateral received2 | i 12 | % | i 12 | % |
$ in millions | At | At | ||||||
Margin and other lending | $ | i 74,714 | $ | i 31,916 |
December 2020 Form 10-K | 118 |
Notes to Consolidated Financial Statements |
At December 31, 2020 | |||||||||||
$ in millions | Loans Held for Investment | Loans Held for Sale | Total Loans | ||||||||
Corporate | $ | i 6,046 | $ | i 8,580 | $ | i 14,626 | |||||
Secured lending facilities | i 25,727 | i 3,296 | i 29,023 | ||||||||
Commercial real estate | i 7,346 | i 822 | i 8,168 | ||||||||
Residential real estate | i 35,268 | i 48 | i 35,316 | ||||||||
Securities-based lending and Other loans | i 64,232 | i 67 | i 64,299 | ||||||||
Total loans, before ACL | i 138,619 | i 12,813 | i 151,432 | ||||||||
ACL | ( i 835) | ( i 835) | |||||||||
Total loans, net | $ | i 137,784 | $ | i 12,813 | $ | i 150,597 | |||||
Fixed rate loans, net | $ | i 32,796 | |||||||||
Floating or adjustable rate loans, net | i 117,801 | ||||||||||
Loans to non-U.S. borrowers, net | i 21,081 |
At December 31, 2019 | |||||||||||
$ in millions | Loans Held for Investment | Loans Held for Sale | Total Loans | ||||||||
Corporate | $ | i 5,426 | $ | i 6,192 | $ | i 11,618 | |||||
Secured lending facilities | i 24,502 | i 4,200 | i 28,702 | ||||||||
Commercial real estate | i 7,859 | i 2,049 | i 9,908 | ||||||||
Residential real estate | i 30,184 | i 13 | i 30,197 | ||||||||
Securities-based lending and Other loans | i 50,438 | i 123 | i 50,561 | ||||||||
Total loans, gross | i 118,409 | i 12,577 | i 130,986 | ||||||||
Allowance for credit losses | ( i 349) | — | ( i 349) | ||||||||
Total loans, net | $ | i 118,060 | $ | i 12,577 | $ | i 130,637 | |||||
Fixed rate loans, net | $ | i 22,716 | |||||||||
Floating or adjustable rate loans, net | i 107,921 | ||||||||||
Loans to non-U.S. borrowers, net | i 21,617 |
At December 31, 2020 | |||||||||||
Corporate | |||||||||||
$ in millions | Investment Grade | Non-Investment Grade | Total | ||||||||
Revolving | $ | i 1,138 | $ | i 3,231 | $ | i 4,369 | |||||
2020 | i 585 | i 80 | i 665 | ||||||||
2019 | i 204 | i 202 | i 406 | ||||||||
2018 | i 195 | i — | i 195 | ||||||||
2017 | i — | i 64 | i 64 | ||||||||
2016 | i 115 | i — | i 115 | ||||||||
Prior | i 132 | i 100 | i 232 | ||||||||
Total | $ | i 2,369 | $ | i 3,677 | $ | i 6,046 |
At December 31, 2020 | |||||||||||
Secured lending facilities | |||||||||||
$ in millions | Investment Grade | Non-Investment Grade | Total | ||||||||
Revolving | $ | i 4,711 | $ | i 14,510 | $ | i 19,221 | |||||
2020 | i 162 | i 253 | i 415 | ||||||||
2019 | i 260 | i 1,904 | i 2,164 | ||||||||
2018 | i 614 | i 1,432 | i 2,046 | ||||||||
2017 | i 245 | i 581 | i 826 | ||||||||
2016 | i — | i 654 | i 654 | ||||||||
Prior | i — | i 401 | i 401 | ||||||||
Total | $ | i 5,992 | $ | i 19,735 | $ | i 25,727 |
At December 31, 2020 | |||||||||||
Commercial real estate | |||||||||||
$ in millions | Investment Grade | Non-Investment Grade | Total | ||||||||
2020 | $ | i 95 | $ | i 943 | $ | i 1,038 | |||||
2019 | i 1,074 | i 1,848 | i 2,922 | ||||||||
2018 | i 746 | i 774 | i 1,520 | ||||||||
2017 | i 412 | i 387 | i 799 | ||||||||
2016 | i 100 | i 594 | i 694 | ||||||||
Prior | i — | i 373 | i 373 | ||||||||
Total | $ | i 2,427 | $ | i 4,919 | $ | i 7,346 |
119 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
At December 31, 2020 | ||||||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||
by FICO Scores | by LTV Ratio | Total | ||||||||||||||||||||||||
$ in millions | ≥ 740 | 680-739 | ≤ 679 | ≤
80% | > 80% | |||||||||||||||||||||
Revolving | $ | i 85 | $ | i 32 | $ | i 5 | $ | i 122 | $ | i — | $ | i 122 | ||||||||||||||
2020 | i 8,948 | i 1,824 | i 149 | i 10,338 | i 583 | i 10,921 | ||||||||||||||||||||
2019 | i 5,592 | i 1,265 | i 168 | i 6,584 | i 441 | i 7,025 | ||||||||||||||||||||
2018 | i 2,320 | i 604 | i 75 | i 2,756 | i 243 | i 2,999 | ||||||||||||||||||||
2017 | i 2,721 | i 690 | i 89 | i 3,251 | i 249 | i 3,500 | ||||||||||||||||||||
2016 | i 3,324 | i 884 | i 118 | i 4,035 | i 291 | i 4,326 | ||||||||||||||||||||
Prior | i 4,465 | i 1,626 | i 284 | i 5,684 | i 691 | i 6,375 | ||||||||||||||||||||
Total | $ | i 27,455 | $ | i 6,925 | $ | i 888 | $ | i 32,770 | $ | i 2,498 | $ | i 35,268 |
At December 31, 2020 | ||||||||||||||
Securities-based lending1 | Other2 | |||||||||||||
$ in millions | Investment Grade | Non-Investment Grade | Total | |||||||||||
Revolving | $ | i 51,667 | $ | i 4,816 | $ | i 555 | $ | i 57,038 | ||||||
2020 | i — | i 1,073 | i 590 | i 1,663 | ||||||||||
2019 | i 18 | i 1,156 | i 623 | i 1,797 | ||||||||||
2018 | i 232 | i 407 | i 403 | i 1,042 | ||||||||||
2017 | i — | i 654 | i 122 | i 776 | ||||||||||
2016 | i — | i 566 | i 111 | i 677 | ||||||||||
Prior | i 16 | i 1,066 | i 157 | i 1,239 | ||||||||||
Total | $ | i 51,933 | $ | i 9,738 | $ | i 2,561 | $ | i 64,232 |
At December 31, 2020 | |||||||||||
$ in millions | Current | Past Due1 | Total | ||||||||
Corporate | $ | i 6,046 | $ | i — | $ | i 6,046 | |||||
Secured lending facilities | i 25,727 | i — | i 25,727 | ||||||||
Commercial real estate | i 7,346 | i — | i 7,346 | ||||||||
Residential real estate | i 34,936 | i 332 | i 35,268 | ||||||||
Securities-based lending and Other loans | i 64,201 | i 31 | i 64,232 | ||||||||
Total | $ | i 138,256 | $ | i 363 | $ | i 138,619 |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Corporate | $ | i 164 | $ | i 299 | ||||
Commercial
real estate | i 152 | i 85 | ||||||
Residential
real estate | i 97 | i 94 | ||||||
Securities-based lending and Other loans | i 178 | i 5 | ||||||
Total1 | $ | i 591 | $ | i 483 | ||||
Nonaccrual
loans without an ACL | $ | i 90 | $ | i 120 |
$ in millions | At | At | ||||||
Loans, before ACL | $ | i 167 | $ | i 92 | ||||
Lending commitments | i 27 | i 32 | ||||||
Allowance for
loan losses and lending commitments | i 36 | i 16 |
$
in millions | Corporate | Secured lending facilities | CRE | Residential real estate | SBL and Other | Total | ||||||||||||||
December 31, 2019 | $ | i 115 | $ | i 101 | $ | i 75 | $ | i 25 | $ | i 33 | $ | i 349 | ||||||||
Effect of CECL adoption | ( i 2) | ( i 42) | i 34 | i 21 | ( i 2) | i 9 | ||||||||||||||
Gross charge-offs | ( i 39) | i — | ( i 64) | ( i 1) | ( i 1) | ( i 105) | ||||||||||||||
Recoveries | i 4 | i — | i — | i — | i 4 | i 8 | ||||||||||||||
Net (charge-offs) recoveries | ( i 35) | i — | ( i 64) | ( i 1) | i 3 | ( i 97) | ||||||||||||||
Provision (release) | i 225 | i 136 | i 197 | i 14 | ( i 13) | i 559 | ||||||||||||||
Other | i 6 | i 3 | ( i 31) | i — | i 37 | i 15 | ||||||||||||||
December 31, 2020 | $ | i 309 | $ | i 198 | $ | i 211 | $ | i 59 | $ | i 58 | $ | i 835 |
$
in millions | Corporate | Secured lending facilities | CRE | Residential real estate | SBL and Other | Total | ||||||||||||||
December 31, 2018 | $ | i 62 | $ | i 60 | $ | i 67 | $ | i 20 | $ | i 29 | $ | i 238 | ||||||||
Gross charge-offs | i — | i — | i — | ( i 2) | i — | ( i 2) | ||||||||||||||
Provision (release) | i 59 | i 42 | i 8 | i 7 | i 4 | i 120 | ||||||||||||||
Other | ( i 6) | ( i 1) | i — | i — | i — | ( i 7) | ||||||||||||||
December 31, 2019 | $ | i 115 | $ | i 101 | $ | i 75 | $ | i 25 | $ | i 33 | $ | i 349 |
$
in millions | Corporate | Secured lending facilities | CRE | Residential real estate | SBL and Other | Total | ||||||||||||||
December 31, 2017 | $ | i 63 | $ | i 41 | $ | i 70 | $ | i 24 | $ | i 26 | $ | i 224 | ||||||||
Gross charge-offs | ( i 1) | i — | i — | ( i 1) | ( i 4) | ( i 6) | ||||||||||||||
Recoveries | i 54 | i — | i — | i — | i — | i 54 | ||||||||||||||
Net (charge-offs) recoveries | i 53 | i — | i — | ( i 1) | ( i 4) | i 48 | ||||||||||||||
Provision
(release)1 | ( i 53) | i 20 | i 5 | ( i 3) | i 7 | ( i 24) | ||||||||||||||
Other | ( i 1) | ( i 1) | ( i 8) | i — | i — | ( i 10) | ||||||||||||||
December 31, 2018 | $ | i 62 | $ | i 60 | $ | i 67 | $ | i 20 | $ | i 29 | $ | i 238 |
December 2020 Form 10-K | 120 |
Notes to Consolidated Financial Statements |
$
in millions | Corporate | Secured lending facilities | CRE | Residential real estate | SBL and Other | Total | ||||||||||||||
December 31, 2019 | $ | i 201 | $ | i 27 | $ | i 7 | $ | i — | $ | i 6 | $ | i 241 | ||||||||
Effect of CECL adoption | ( i 41) | ( i 11) | i 1 | i 2 | ( i 1) | ( i 50) | ||||||||||||||
Provision (release) | i 161 | i 22 | i 7 | ( i 1) | i 14 | i 203 | ||||||||||||||
Other | i 2 | i — | ( i 4) | i — | i 4 | i 2 | ||||||||||||||
December 31, 2020 | $ | i 323 | $ | i 38 | $ | i 11 | $ | i 1 | $ | i 23 | $ | i 396 |
$
in millions | Corporate | Secured lending facilities | CRE | Residential real estate | SBL and Other | Total | ||||||||||||||
December 31, 2018 | $ | i 177 | $ | i 16 | $ | i 3 | $ | i — | $ | i 7 | $ | i 203 | ||||||||
Provision (release) | i 27 | i 11 | i 4 | i — | i — | i 42 | ||||||||||||||
Other | ( i 3) | i — | i — | i — | ( i 1) | ( i 4) | ||||||||||||||
December 31, 2019 | $ | i 201 | $ | i 27 | $ | i 7 | $ | i — | $ | i 6 | $ | i 241 |
$
in millions | Corporate | Secured lending facilities | CRE | Residential real estate | SBL and Other | Total | ||||||||||||||
December 31, 2017 | $ | i 177 | $ | i 12 | $ | i 3 | $ | i — | $ | i 6 | $ | i 198 | ||||||||
Provision (release) | i 3 | i 4 | i 1 | i — | i 1 | i 9 | ||||||||||||||
Other | ( i 3) | i — | ( i 1) | i — | i — | ( i 4) | ||||||||||||||
December 31, 2018 | $ | i 177 | $ | i 16 | $ | i 3 | $ | i — | $ | i 7 | $ | i 203 |
$ in millions | At | At | ||||||
Currently employed by the Firm1 | $ | i 3,100 | N/A | |||||
No
longer employed by the Firm2 | i 140 | N/A | ||||||
Employee loans | $ | i 3,240 | $ | i 2,980 | ||||
ACL3 | ( i 165) | ( i 61) | ||||||
Employee loans, net of ACL | $ | i 3,075 | $ | i 2,919 | ||||
Remaining repayment term, weighted average in years | i 5.3 | i 4.8 |
$ in millions | IS | WM | IM | Total | ||||||||||
At December 31, 2018¹ | $ | i 274 | $ | i 5,533 | $ | i 881 | $ | i 6,688 | ||||||
Foreign currency and other | ( i 13) | ( i 1) | i — | ( i 14) | ||||||||||
Acquired2 | i — | i 469 | i — | i 469 | ||||||||||
At December 31, 2019¹ | $ | i 261 | $ | i 6,001 | $ | i 881 | $ | i 7,143 | ||||||
Foreign currency and other | i 15 | i 7 | i — | i 22 | ||||||||||
Acquired3 | i 200 | i 4,270 | i — | i 4,470 | ||||||||||
$ | i 476 | $ | i 10,278 | $ | i 881 | $ | i 11,635 | |||||||
Accumulated
impairments4 | $ | i 673 | $ | i — | $ | i 27 | $ | i 700 |
121 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
$ in millions | IS | WM | IM | Total | ||||||||||
At December 31, 2018 | $ | i 270 | $ | i 1,828 | $ | i 60 | $ | i 2,158 | ||||||
Acquired1 | i 3 | i 270 | i — | i 273 | ||||||||||
Disposals | ( i 29) | i — | i — | ( i 29) | ||||||||||
Amortization expense | ( i 35) | ( i 271) | ( i 8) | ( i 314) | ||||||||||
Other | i 18 | i 1 | i — | i 19 | ||||||||||
At December 31, 2019 | $ | i 227 | $ | i 1,828 | $ | i 52 | $ | i 2,107 | ||||||
Acquired2 | i 14 | i 3,309 | i — | i 3,323 | ||||||||||
Disposals | ( i 79) | i — | i — | ( i 79) | ||||||||||
Amortization expense | ( i 35) | ( i 330) | ( i 8) | ( i 373) | ||||||||||
Other | i — | i 2 | i — | i 2 | ||||||||||
At December 31, 2020 | $ | i 127 | $ | i 4,809 | $ | i 44 | $ | i 4,980 |
At December 31, 2020 | At December 31, 2019 | |||||||||||||
$ in millions | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||
Tradenames | $ | i 460 | $ | i 82 | $ | i 291 | $ | i 71 | ||||||
Customer relationships | i 7,420 | i 2,984 | i 4,321 | i 2,703 | ||||||||||
Management contracts | i 178 | i 120 | i 482 | i 327 | ||||||||||
Other | i 187 | i 79 | i 217 | i 103 | ||||||||||
Total | $ | i 8,245 | $ | i 3,265 | $ | i 5,311 | $ | i 3,204 | ||||||
Estimated annual amortization expense for the next five years | $ | i 470 |
$ in millions | At | At | ||||||
Investments | $ | i 2,410 | $ | i 2,363 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Income (loss)1 | $ | i — | $ | ( i 81) | $ | i 20 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Income from investment in MUMSS | $ | i 80 | $ | i 17 | $ | i 105 |
$ in millions | At | At | ||||||
Other assets—ROU assets | $ | i 4,419 | $ | i 3,998 | ||||
Other liabilities and accrued expenses—Lease liabilities | i 5,327 | i 4,778 | ||||||
Weighted average: | ||||||||
Remaining lease term, in years | i 9.5 | i 9.7 | ||||||
Discount
rate | i 3.2 | % | i 3.6 | % |
$ in millions | At | At | ||||||
2020 | $ | — | $ | i 763 | ||||
2021 | i 841 | i 703 | ||||||
2022 | i 793 | i 646 | ||||||
2023 | i 740 | i 593 | ||||||
2024 | i 639 | i 524 | ||||||
2025 | i 532 | i 439 | ||||||
Thereafter | i 2,685 | i 2,406 | ||||||
Total undiscounted cash flows | i 6,230 | i 6,074 | ||||||
Imputed
interest | ( i 903) | ( i 1,296) | ||||||
Amount on balance sheet | $ | i 5,327 | $ | i 4,778 | ||||
Committed
leases not yet commenced | $ | i 278 | $ | i 55 |
December 2020 Form 10-K | 122 |
Notes to Consolidated Financial Statements |
$ in millions | 2020 | 2019 | ||||||
Fixed costs | $ | i 762 | $ | i 670 | ||||
Variable
costs1 | i 154 | i 152 | ||||||
Less: Sublease income | ( i 5) | ( i 6) | ||||||
Total lease cost, net | $ | i 911 | $ | i 816 |
$ in millions | 2020 | 2019 | ||||||
Cash outflows—Lease liabilities | $ | i 765 | $ | i 685 | ||||
Non-cash—ROU
assets recorded for new and modified leases | i 991 | i 514 |
$ in millions | 2018 | ||||
Rent expense | i 753 |
$ in millions | At | At | ||||||
Savings and demand deposits | $ | i 279,221 | $ | i 149,465 | ||||
Time deposits | i 31,561 | i 40,891 | ||||||
Total | $ | i 310,782 | $ | i 190,356 | ||||
Deposits subject to FDIC insurance | $ | i 234,211 | $ | i 149,966 | ||||
Time
deposits that equal or exceed the FDIC insurance limit | $ | i 16 | $ | i 12 |
$ in millions | At | ||||
2021 | $ | i 18,477 | |||
2022 | i 4,982 | ||||
2023 | i 4,094 | ||||
2024 | i 2,718 | ||||
2025 | i 778 | ||||
Thereafter | i 512 | ||||
Total | $ | i 31,561 |
Parent Company | Subsidiaries | At | At | |||||||||||||||||
$ in millions | Fixed Rate1 | Variable Rate2 | Fixed Rate1 | Variable
Rate2 | ||||||||||||||||
Original maturities of one year or less: | ||||||||||||||||||||
Next 12 months | $ | i — | $ | i 1 | $ | i — | $ | i 3,690 | $ | i 3,691 | $ | i 2,567 | ||||||||
Original maturities greater than one year: | ||||||||||||||||||||
2020 | $ | i — | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 20,402 | ||||||||
2021 | i 14,341 | i 3,329 | i 616 | i 5,955 | i 24,241 | i 26,085 | ||||||||||||||
2022 | i 6,909 | i 9,703 | i 764 | i 4,833 | i 22,209 | i 19,888 | ||||||||||||||
2023 | i 10,853 | i 6,299 | i 123 | i 5,615 | i 22,890 | i 14,615 | ||||||||||||||
2024 | i 14,096 | i 2,013 | i 387 | i 5,231 | i 21,727 | i 21,106 | ||||||||||||||
2025 | i 10,719 | i 617 | i 1,547 | i 5,753 | i 18,636 | i 14,642 | ||||||||||||||
Thereafter | i 76,499 | i 4,444 | i 8,301 | i 14,441 | i 103,685 | i 73,322 | ||||||||||||||
Total | $ | i 133,417 | $ | i 26,405 | $ | i 11,738 | $ | i 41,828 | $ | i 213,388 | $ | i 190,060 | ||||||||
Total
borrowings | $ | i 133,417 | $ | i 26,406 | $ | i 11,738 | $ | i 45,518 | $ | i 217,079 | $ | i 192,627 |
Weighted
average coupon at period end3 | i i 3.3 / | % | i i 1.0 / | % | i i 0.9 / | % | N/M | i i 2.9 / | % | i i 3.4 / | % |
$ in millions | At | At | ||||||
Senior | $ | i 202,305 | $ | i 179,519 | ||||
Subordinated | i 11,083 | i 10,541 | ||||||
Total | $ | i 213,388 | $ | i 190,060 | ||||
Weighted average stated maturity, in years | i 7.3 | i 6.9 |
123 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
$ in millions | At | At | ||||||
Put options embedded in debt agreements | $ | i 94 | $ | i 290 | ||||
Liquidity
obligations1 | $ | i 1,483 | $ | i 1,344 |
2020 | 2019 | |||||||
Contractual weighted average coupon | i 4.5 | % | i 4.5 | % |
At December 31, | |||||||||||
2020 | 2019 | 2018 | |||||||||
Contractual
weighted average coupon1 | i 2.9 | % | i 3.4 | % | i 3.5 | % | |||||
Effective weighted average coupon after swaps | i 1.7 | % | i 2.9 | % | i 3.6 | % |
$ in millions | At | At | ||||||
Original maturities: | ||||||||
One year or less | $ | i 10,453 | $ | i 7,103 | ||||
Greater than one year | i 5,410 | i 7,595 | ||||||
Total | $ | i 15,863 | $ | i 14,698 | ||||
Transfers
of assets accounted for as secured financings | i 1,529 | i 1,115 |
At December 31, 2020 | At December 31, 2019 | |||||||||||||
$ in millions | Fixed Rate | Variable Rate2 | Total | |||||||||||
Original maturities of one year or less: | ||||||||||||||
Next 12 months | $ | i 6,099 | $ | i 4,354 | $ | i 10,453 | $ | i 7,103 | ||||||
Original maturities greater than one year: | ||||||||||||||
2020 | $ | i — | $ | i — | $ | i — | $ | i 1,663 | ||||||
2021 | i 1,270 | i 385 | i 1,655 | i 1,110 | ||||||||||
2022 | i 605 | i 800 | i 1,405 | i 227 | ||||||||||
2023 | i 191 | i 88 | i 279 | i 2,655 | ||||||||||
2024 | i — | i 96 | i 96 | i 12 | ||||||||||
2025 | i 38 | i — | i 38 | i 36 | ||||||||||
Thereafter | i 23 | i 385 | i 408 | i 777 | ||||||||||
Total | $ | i 2,127 | $ | i 1,754 | $ | i 3,881 | $ | i 6,480 | ||||||
Weighted average
coupon at period-end3 | N/M | i 0.5 | % | i 0.6 | % | i 2.4 | % |
$ in millions | At | At | ||||||
2020 | $ | i — | $ | i 208 | ||||
2021 | i 303 | i 225 | ||||||
2022 | i 159 | i 46 | ||||||
2023 | i 626 | i 334 | ||||||
2024 | i 14 | i — | ||||||
2025 | i — | i — | ||||||
Thereafter | i 427 | i 302 | ||||||
Total | $ | i 1,529 | $ | i 1,115 |
December 2020 Form 10-K | 124 |
Notes to Consolidated Financial Statements |
Years to Maturity at December 31, 2020 | |||||||||||||||||
$ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||
Lending: | |||||||||||||||||
Corporate | $ | i 15,362 | $ | i 37,720 | $ | i 39,886 | $ | i 5,896 | $ | i 98,864 | |||||||
Secured lending facilities | i 5,574 | i 4,790 | i 1,399 | i 271 | i 12,034 | ||||||||||||
Commercial and Residential real estate | i 432 | i 244 | i 88 | i 244 | i 1,008 | ||||||||||||
Securities-based lending and Other | i 12,178 | i 3,063 | i 225 | i 483 | i 15,949 | ||||||||||||
Forward-starting secured financing receivables | i 57,164 | i — | i — | i — | i 57,164 | ||||||||||||
Central
counterparty1 | i 300 | i — | i — | i 9,286 | i 9,586 | ||||||||||||
Underwriting | i 3,037 | i — | i — | i — | i 3,037 | ||||||||||||
Investment activities | i 804 | i 215 | i 73 | i 316 | i 1,408 | ||||||||||||
Letters of credit and other financial guarantees | i 174 | i 1 | i — | i 3 | i 178 | ||||||||||||
Total | $ | i 95,025 | $ | i 46,033 | $ | i 41,671 | $ | i 16,499 | $ | i 199,228 | |||||||
Lending commitments participated to third parties | $ | i 9,035 | |||||||||||||||
Forward-starting secured financing receivables settled within three business days | $ | i 54,542 |
125 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
Maximum Potential Payout/Notional | |||||||||||||||||
Years to Maturity | |||||||||||||||||
$ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | Total | ||||||||||||
Credit derivatives | $ | i 24,428 | $ | i 43,350 | $ | i 116,780 | $ | i 38,830 | $ | i 223,388 | |||||||
Other credit contracts | i — | i 194 | i — | i 91 | i 285 | ||||||||||||
Non-credit derivatives | i 1,308,747 | i 1,010,126 | i 337,949 | i 805,802 | i 3,462,624 | ||||||||||||
Standby letters of credit
and other financial guarantees issued1 | i 1,136 | i 1,395 | i 1,217 | i 3,676 | i 7,424 | ||||||||||||
Market value guarantees | i 87 | i 25 | i — | i — | i 112 | ||||||||||||
Liquidity facilities | i 4,425 | i — | i — | i — | i 4,425 | ||||||||||||
Whole
loan sales guarantees | i — | i — | i 24 | i 23,157 | i 23,181 | ||||||||||||
Securitization
representations and warranties | i — | i — | i — | i 66,556 | i 66,556 | ||||||||||||
General
partner guarantees | i 150 | i 120 | i 32 | i 118 | i 420 | ||||||||||||
Client
clearing guarantees | i 87 | i — | i — | i — | i 87 |
$ in millions | Carrying Amount Asset (Liability) | ||||
Credit derivatives2 | $ | i 1,227 | |||
Other credit contracts | ( i 4) | ||||
Non-credit
derivatives2 | ( i 65,640) | ||||
Standby letters of credit and other financial guarantees issued1 | i 111 | ||||
Market value guarantees | i — | ||||
Liquidity facilities | i 5 | ||||
Whole loan sales guarantees | i — | ||||
Securitization representations and warranties3 | ( i 42) | ||||
General partner guarantees | ( i 70) | ||||
Client clearing guarantees | i — |
December 2020 Form 10-K | 126 |
Notes to Consolidated Financial Statements |
127 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Legal expenses | $ | i 336 | $ | i 221 | $ | i 206 |
December 2020 Form 10-K | 128 |
Notes to Consolidated Financial Statements |
129 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
At December 31, 2020 | At December 31, 2019 | |||||||||||||
$ in millions | VIE Assets | VIE Liabilities | VIE Assets | VIE Liabilities | ||||||||||
OSF | $ | i 551 | $ | i 350 | $ | i 696 | $ | i 391 | ||||||
MABS1 | i 590 | i 17 | i 265 | i 4 | ||||||||||
Other2 | i 977 | i 47 | i 987 | i 66 | ||||||||||
Total | $ | i 2,118 | $ | i 414 | $ | i 1,948 | $ | i 461 |
$ in millions | At | At | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | i 269 | $ | i 488 | ||||
Trading assets at fair value | i 1,445 | i 943 | ||||||
Customer and other receivables | i 23 | i 18 | ||||||
Intangible assets | i 98 | i 111 | ||||||
Other assets | i 283 | i 388 | ||||||
Total | $ | i 2,118 | $ | i 1,948 | ||||
Liabilities | ||||||||
Other secured financings | $ | i 366 | $ | i 422 | ||||
Other liabilities and accrued expenses | i 48 | i 39 | ||||||
Total | $ | i 414 | $ | i 461 | ||||
Noncontrolling interests | $ | i 196 | $ | i 192 |
December 2020 Form 10-K | 130 |
Notes to Consolidated Financial Statements |
At December 31, 2020 | |||||||||||||||||
$ in millions | MABS1 | CDO | MTOB | OSF | Other2 | ||||||||||||
VIE assets (UPB) | $ | i 184,153 | $ | i 3,527 | $ | i 6,524 | $ | i 2,161 | $ | i 48,241 | |||||||
Maximum
exposure to loss3 | |||||||||||||||||
Debt and equity interests | $ | i 26,247 | $ | i 257 | $ | i — | $ | i 1,187 | $ | i 11,008 | |||||||
Derivative
and other contracts | i — | i — | i 4,425 | i — | i 5,639 | ||||||||||||
Commitments, guarantees and other | i 929 | i — | i — | i — | i 749 | ||||||||||||
Total | $ | i 27,176 | $ | i 257 | $ | i 4,425 | $ | i 1,187 | $ | i 17,396 | |||||||
Carrying value of variable interests—Assets | |||||||||||||||||
Debt and equity interests | $ | i 26,247 | $ | i 257 | $ | i — | $ | i 1,187 | $ | i 11,008 | |||||||
Derivative
and other contracts | i — | i — | i 5 | i — | i 851 | ||||||||||||
Total | $ | i 26,247 | $ | i 257 | $ | i 5 | $ | i 1,187 | $ | i 11,859 | |||||||
Additional
VIE assets owned4 | $ | i 20,019 | |||||||||||||||
Carrying value of variable interests—Liabilities | |||||||||||||||||
Derivative and other contracts | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 222 | |||||||
At December 31, 2019 | |||||||||||||||||
$ in millions | MABS1 | CDO | MTOB | OSF | Other2 | ||||||||||||
VIE assets (UPB) | $ | i 125,603 | $ | i 2,976 | $ | i 6,965 | $ | i 2,288 | $ | i 51,305 | |||||||
Maximum
exposure to loss3 | |||||||||||||||||
Debt and equity interests | $ | i 16,314 | $ | i 240 | $ | i — | $ | i 1,009 | $ | i 11,977 | |||||||
Derivative
and other contracts | i — | i — | i 4,599 | i — | i 2,995 | ||||||||||||
Commitments,
guarantees and other | i 631 | i — | i — | i — | i 266 | ||||||||||||
Total | $ | i 16,945 | $ | i 240 | $ | i 4,599 | $ | i 1,009 | $ | i 15,238 | |||||||
Carrying value of variable interests—Assets | |||||||||||||||||
Debt and equity interests | $ | i 16,314 | $ | i 240 | $ | i — | $ | i 1,008 | $ | i 11,977 | |||||||
Derivative
and other contracts | i — | i — | i 6 | i — | i 388 | ||||||||||||
Total | $ | i 16,314 | $ | i 240 | $ | i 6 | $ | i 1,008 | $ | i 12,365 | |||||||
Additional
VIE assets owned4 | $ | i 11,453 | |||||||||||||||
Carrying value of variable interests—Liabilities | |||||||||||||||||
Derivative and other contracts | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 444 | |||||||
At December 31, 2020 | At December 31, 2019 | |||||||||||||
$ in millions | UPB | Debt and Equity Interests | UPB | Debt and Equity Interests | ||||||||||
Residential mortgages | $ | i 17,775 | $ | i 3,175 | $ | i 30,353 | $ | i 3,993 | ||||||
Commercial mortgages | i 62,093 | i 4,131 | i 53,892 | i 3,881 | ||||||||||
U.S.
agency collateralized mortgage obligations | i 99,182 | i 17,224 | i 36,366 | i 6,365 | ||||||||||
Other
consumer or commercial loans | i 5,103 | i 1,717 | i 4,992 | i 2,075 | ||||||||||
Total | $ | i 184,153 | $ | i 26,247 | $ | i 125,603 | $ | i 16,314 |
131 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
December 2020 Form 10-K | 132 |
Notes to Consolidated Financial Statements |
At December 31, 2020 | ||||||||||||||
$ in millions | RML | CML | U.S. Agency CMO | CLN and Other1 | ||||||||||
SPE assets (UPB)2 | $ | i 7,515 | $ | i 84,674 | $ | i 21,061 | $ | i 12,978 | ||||||
Retained interests | ||||||||||||||
Investment grade | $ | i 49 | $ | i 822 | $ | i 615 | $ | i — | ||||||
Non-investment grade | i 16 | i 195 | i — | i 114 | ||||||||||
Total | $ | i 65 | $ | i 1,017 | $ | i 615 | $ | i 114 | ||||||
Interests purchased in the secondary market | ||||||||||||||
Investment grade | $ | i — | $ | i 96 | $ | i 116 | $ | i — | ||||||
Non-investment grade | i 43 | i 80 | i — | i 21 | ||||||||||
Total | $ | i 43 | $ | i 176 | $ | i 116 | $ | i 21 | ||||||
Derivative assets | $ | i — | $ | i — | $ | i — | $ | i 400 | ||||||
Derivative liabilities | i — | i — | i — | i 436 |
December 31, 2019 | ||||||||||||||
$ in millions | RML | CML | U.S. Agency CMO | CLN and Other1 | ||||||||||
SPE assets (UPB)2 | $ | i 9,850 | $ | i 86,203 | $ | i 19,132 | $ | i 8,410 | ||||||
Retained interests | ||||||||||||||
Investment grade | $ | i 29 | $ | i 720 | $ | i 2,376 | $ | i 1 | ||||||
Non-investment grade | i 17 | i 254 | i — | i 92 | ||||||||||
Total | $ | i 46 | $ | i 974 | $ | i 2,376 | $ | i 93 | ||||||
Interests purchased in the secondary market | ||||||||||||||
Investment grade | $ | i 6 | $ | i 197 | $ | i 77 | $ | i — | ||||||
Non-investment grade | i 75 | i 51 | i — | i — | ||||||||||
Total | $ | i 81 | $ | i 248 | $ | i 77 | $ | i — | ||||||
Derivative assets | $ | i — | $ | i — | $ | i — | $ | i 339 | ||||||
Derivative liabilities | i — | i — | i — | i 145 |
Fair Value at December 31, 2020 | |||||||||||
$ in millions | Level 2 | Level 3 | Total | ||||||||
Retained interests | |||||||||||
Investment grade | $ | i 663 | $ | i — | $ | i 663 | |||||
Non-investment grade | i 6 | i 63 | i 69 | ||||||||
Total | $ | i 669 | $ | i 63 | $ | i 732 | |||||
Interests purchased in the secondary market | |||||||||||
Investment grade | $ | i 196 | $ | i 16 | $ | i 212 | |||||
Non-investment grade | i 62 | i 82 | i 144 | ||||||||
Total | $ | i 258 | $ | i 98 | $ | i 356 | |||||
Derivative assets | $ | i 388 | $ | i 12 | $ | i 400 | |||||
Derivative liabilities | i 435 | i 1 | i 436 |
Fair Value at December 31, 2019 | |||||||||||
$ in millions | Level 2 | Level 3 | Total | ||||||||
Retained interests | |||||||||||
Investment grade | $ | i 2,401 | $ | i 4 | $ | i 2,405 | |||||
Non-investment grade | i 6 | i 97 | i 103 | ||||||||
Total | $ | i 2,407 | $ | i 101 | $ | i 2,508 | |||||
Interests purchased in the secondary market | |||||||||||
Investment grade | $ | i 278 | $ | i 2 | $ | i 280 | |||||
Non-investment grade | i 68 | i 58 | i 126 | ||||||||
Total | $ | i 346 | $ | i 60 | $ | i 406 | |||||
Derivative assets | $ | i 337 | $ | i 2 | $ | i 339 | |||||
Derivative liabilities | i 144 | i 1 | i 145 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
New transactions1 | $ | i 51,814 | $ | i 34,464 | $ | i 23,821 | |||||
Retained interests | i 9,346 | i 7,403 | i 2,904 | ||||||||
Sales
of corporate loans to CLO SPEs1, 2 | i 763 | i 2 | i 317 |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Gross cash proceeds from sale of assets1 | $ | i 45,051 | $ | i 38,661 | ||||
Fair value | ||||||||
Assets sold | $ | i 46,609 | $ | i 39,137 | ||||
Derivative assets recognized in the balance sheets | i 1,592 | i 647 | ||||||
Derivative liabilities recognized in the balance sheets | i 64 | i 152 |
133 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
At December 31, 2020 | At December 31, 2019 | |||||||||||||
Standardized | Advanced | Standardized
and Advanced | ||||||||||||
Capital buffers | ||||||||||||||
Capital conservation buffer | — | i 2.5 | % | i 2.5 | % | |||||||||
Stress capital buffer (“SCB”) | i 5.7 | % | N/A | N/A | ||||||||||
G-SIB capital surcharge | i 3.0 | % | i 3.0 | % | i i 3.0 / | % | ||||||||
CCyB1 | i 0% | i 0% | i i 0 / % | |||||||||||
Capital
buffer requirement2 | i 8.7 | % | i 5.5 | % | i i 5.5 / | % | ||||||||
At December 31, 2020 | At December 31, 2019 | |||||||||||||
Regulatory Minimum | Standardized | Advanced | Standardized and Advanced | |||||||||||
Required ratios3 | ||||||||||||||
Common Equity Tier 1 capital ratio | i 4.5 | % | i 13.2 | % | i 10.0 | % | i i 10.0 / | % | ||||||
Tier 1 capital ratio | i 6.0 | % | i 14.7 | % | i 11.5 | % | i i 11.5 / | % | ||||||
Total capital ratio | i 8.0 | % | i 16.7 | % | i 13.5 | % | i i 13.5 / | % |
December 2020 Form 10-K | 134 |
Notes to Consolidated Financial Statements |
At December 31, 2020 | |||||||||||
$ in millions | Required Ratio1 | Amount | Ratio | ||||||||
Risk-based capital | |||||||||||
Common Equity Tier 1 capital | i 13.2 | % | $ | i 78,650 | i 17.4 | % | |||||
Tier 1 capital | i 14.7 | % | i 88,079 | i 19.4 | % | ||||||
Total capital | i 16.7 | % | i 97,213 | i 21.5 | % | ||||||
Total RWA | i 453,106 | ||||||||||
$ in millions | Required Ratio1 | At December 31, 2020 | |||||||||
Leverage-based capital | |||||||||||
Adjusted average assets2 | $ | i 1,053,310 | |||||||||
Tier 1 leverage ratio | i 4.0 | % | i 8.4 | % | |||||||
Supplementary
leverage exposure3, 4 | $ | i 1,192,506 | |||||||||
SLR3 | i 5.0 | % | i 7.4 | % |
At December 31, 2019 | |||||||||||
$ in millions | Required Ratio1 | Amount | Ratio | ||||||||
Risk-based capital | |||||||||||
Common Equity Tier 1 capital | i 10.0 | % | $ | i 64,751 | i 16.4 | % | |||||
Tier 1 capital | i 11.5 | % | i 73,443 | i 18.6 | % | ||||||
Total capital | i 13.5 | % | i 82,708 | i 21.0 | % | ||||||
Total RWA | i 394,177 | ||||||||||
$ in millions | Required Ratio1 | At December 31, 2019 | |||||||||
Leverage-based capital | |||||||||||
Adjusted average assets2 | $ | i 889,195 | |||||||||
Tier 1 leverage ratio | i 4.0 | % | i 8.3 | % | |||||||
Supplementary
leverage exposure4 | $ | i 1,155,177 | |||||||||
SLR | i 5.0 | % | i 6.4 | % |
At December 31, 2020 | ||||||||||||||
$ in millions | Well-Capitalized Requirement | Required Ratio1 | Amount | Ratio | ||||||||||
Risk-based capital | ||||||||||||||
Common Equity Tier 1 capital | i 6.5 | % | i 7.0 | % | $ | i 17,238 | i 18.7 | % | ||||||
Tier 1 capital | i 8.0 | % | i 8.5 | % | i 17,238 | i 18.7 | % | |||||||
Total capital | i 10.0 | % | i 10.5 | % | i 17,882 | i 19.4 | % | |||||||
Leverage-based capital | ||||||||||||||
Tier 1 leverage | i 5.0 | % | i 4.0 | % | $ | i 17,238 | i 10.1 | % | ||||||
SLR | i 6.0 | % | i 3.0 | % | i 17,238 | i 8.0 | % |
At December 31, 2019 | ||||||||||||||
$ in millions | Well-Capitalized Requirement | Required Ratio1 | Amount | Ratio | ||||||||||
Risk-based capital | ||||||||||||||
Common Equity Tier 1 capital | i 6.5 | % | i 7.0 | % | $ | i 15,919 | i 18.5 | % | ||||||
Tier 1 capital | i 8.0 | % | i 8.5 | % | i 15,919 | i 18.5 | % | |||||||
Total capital | i 10.0 | % | i 10.5 | % | i 16,282 | i 18.9 | % | |||||||
Leverage-based capital | ||||||||||||||
Tier 1 leverage | i 5.0 | % | i 4.0 | % | $ | i 15,919 | i 11.3 | % | ||||||
SLR | i 6.0 | % | i 3.0 | % | i 15,919 | i 8.7 | % |
At December 31, 2020 | ||||||||||||||
$ in millions | Well-Capitalized Requirement | Required Ratio1 | Amount | Ratio | ||||||||||
Risk-based capital | ||||||||||||||
Common Equity Tier 1 capital | i 6.5 | % | i 7.0 | % | $ | i 8,213 | i 21.3 | % | ||||||
Tier 1 capital | i 8.0 | % | i 8.5 | % | i 8,213 | i 21.3 | % | |||||||
Total capital | i 10.0 | % | i 10.5 | % | i 8,287 | i 21.5 | % | |||||||
Leverage-based capital | ||||||||||||||
Tier 1 leverage | i 5.0 | % | i 4.0 | % | $ | i 8,213 | i 7.2 | % | ||||||
SLR | i 6.0 | % | i 3.0 | % | i 8,213 | i 6.9 | % |
135 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
At December 31, 2019 | ||||||||||||||
$ in millions | Well-Capitalized Requirement | Required Ratio1 | Amount | Ratio | ||||||||||
Risk-based capital | ||||||||||||||
Common Equity Tier 1 capital | i 6.5 | % | i 7.0 | % | $ | i 7,962 | i 24.8 | % | ||||||
Tier 1 capital | i 8.0 | % | i 8.5 | % | i 7,962 | i 24.8 | % | |||||||
Total capital | i 10.0 | % | i 10.5 | % | i 8,016 | i 25.0 | % | |||||||
Leverage-based capital | ||||||||||||||
Tier 1 leverage | i 5.0 | % | i 4.0 | % | $ | i 7,962 | i 9.9 | % | ||||||
SLR | i 6.0 | % | i 3.0 | % | i 7,962 | i 9.4 | % |
$ in millions | At | At | ||||||
Net capital | $ | i 12,869 | $ | i 13,708 | ||||
Excess net capital | i 9,034 | i 10,686 |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Restricted net assets | $ | i 40,502 | $ | i 33,213 |
Shares Outstanding | Carrying Value | |||||||||||||
$ in millions, except per share data | At December 31, 2020 | Liquidation Preference per Share | At December 31, 2020 | At December 31, 2019 | ||||||||||
Series | ||||||||||||||
A | i 44,000 | $ | i 25,000 | $ | i 1,100 | $ | i 1,100 | |||||||
C1 | i 519,882 | i 1,000 | i 408 | i 408 | ||||||||||
E | i 34,500 | i 25,000 | i 862 | i 862 | ||||||||||
F | i 34,000 | i 25,000 | i 850 | i 850 | ||||||||||
H | i 52,000 | i 25,000 | i 1,300 | i 1,300 | ||||||||||
I | i 40,000 | i 25,000 | i 1,000 | i 1,000 | ||||||||||
J | i 60,000 | i 25,000 | i 1,500 | i 1,500 | ||||||||||
K | i 40,000 | i 25,000 | i 1,000 | i 1,000 | ||||||||||
L | i 20,000 | i 25,000 | i 500 | i 500 | ||||||||||
M | i 400,000 | i 1,000 | i 430 | i — | ||||||||||
N | i 3,000 | i 100,000 | i 300 | i — | ||||||||||
Total | $ | i 9,250 | $ | i 8,520 |
December 2020 Form 10-K | 136 |
Notes to Consolidated Financial Statements |
Depositary Shares per Share | Redemption | ||||||||||||||||
Series1, 2 | Shares Issued | Price per Share3 | Date4 | ||||||||||||||
A | i 44,000 | i 1,000 | $ | i 25,000 | Currently redeemable | ||||||||||||
C5 | i 1,160,791 | N/A | i 1,100 | Currently redeemable | |||||||||||||
E | i 34,500 | i 1,000 | i 25,000 | October 15, 2023 | |||||||||||||
F | i 34,000 | i 1,000 | i 25,000 | January 15, 2024 | |||||||||||||
H | i 52,000 | i 25 | i 25,000 | Currently redeemable | |||||||||||||
I | i 40,000 | i 1,000 | i 25,000 | October 15, 2024 | |||||||||||||
J | i 60,000 | i 25 | i 25,000 | Currently redeemable | |||||||||||||
K | i 40,000 | i 1,000 | i 25,000 | April 15, 2027 | |||||||||||||
L6 | i 20,000 | i 1,000 | i 25,000 | January 15, 2025 | |||||||||||||
M7 | i 400,000 | N/A | i 1,000 | September 15, 2026 | |||||||||||||
N7 | i 3,000 | i 100 | i 100,000 | October 2, 2025 |
in millions | 2020 | 2019 | ||||||
Shares outstanding at beginning of period | i 1,594 | i 1,700 | ||||||
Treasury
stock purchases1 | ( i 39) | ( i 135) | ||||||
Issuance for the acquisition of E*TRADE | i 233 | i — | ||||||
Other2 | i 22 | i 29 | ||||||
Shares outstanding at end of period | i 1,810 | i 1,594 |
$ in millions | 2020 | 2019 | ||||||
Repurchases of common stock under the Firm’s Share Repurchase Program | $ | i 1,347 | $ | i 5,360 |
in millions | 2020 | 2019 | 2018 | ||||||||
Weighted average common shares outstanding, basic | i 1,603 | i 1,617 | i 1,708 | ||||||||
Effect
of dilutive Stock options, RSUs and PSUs | i 21 | i 23 | i 30 | ||||||||
Weighted
average common shares outstanding and common stock equivalents, diluted | i 1,624 | i 1,640 | i 1,738 | ||||||||
Weighted
average antidilutive common stock equivalents (excluded from the computation of diluted EPS) | i 5 | i 2 | i 1 |
137 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
$
in millions, except per share data | 2020 | 2019 | 2018 | |||||||||||||||||||||||
Per Share1 | Total | Per Share1 | Total | Per Share1 | Total | |||||||||||||||||||||
Preferred Stock Series | ||||||||||||||||||||||||||
A | $ | i 1,017 | $ | i 44 | $ | i 1,014 | $ | i 44 | $ | i 1,011 | $ | i 45 | ||||||||||||||
C | i 100 | i 52 | i 100 | i 52 | i 100 | i 52 | ||||||||||||||||||||
E | i 1,781 | i 60 | i 1,781 | i 60 | i 1,781 | i 61 | ||||||||||||||||||||
F | i 1,719 | i 60 | i 1,719 | i 60 | i 1,719 | i 58 | ||||||||||||||||||||
G2 | i — | i — | i 1,242 | i 24 | i 1,656 | i 33 | ||||||||||||||||||||
H | i 1,143 | i 60 | i 1,418 | i 74 | i 1,363 | i 71 | ||||||||||||||||||||
I | i 1,594 | i 64 | i 1,594 | i 64 | i 1,594 | i 64 | ||||||||||||||||||||
J3 | i 1,213 | i 74 | i 1,388 | i 84 | i 1,388 | i 83 | ||||||||||||||||||||
K | i 1,463 | i 59 | i 1,463 | i 59 | i 1,463 | i 59 | ||||||||||||||||||||
L | i 1,219 | i 23 | i 169 | i 3 | i — | i — | ||||||||||||||||||||
M4 | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||
N5 | i — | i — | i — | i — | i — | i — | ||||||||||||||||||||
Total Preferred stock | $ | i 496 | $ | i 524 | $ | i 526 | ||||||||||||||||||||
Common stock | $ | i 1.40 | $ | i 2,295 | $ | i 1.30 | $ | i 2,161 | $ | i 1.10 | $ | i 1,930 |
$ in millions | 2020 | ||||
Financial Instruments-Credit Losses | $ | ( i 100) |
$ in millions | 2019 | ||||
Leases | $ | i 63 |
$ in millions | 2018 | ||||
Revenues from contracts with customers | $ | ( i 32) | |||
Derivatives and hedging—targeted improvements to accounting for hedging activities | ( i 99) | ||||
Reclassification of certain tax effects from AOCI | i 443 | ||||
Other1 | ( i 6) | ||||
Total | $ | i 306 |
$ in millions | CTA | AFS Securities | Pensions and Other | DVA | Total | ||||||||||||
December 31, 2017 | $ | ( i 767) | $ | ( i 547) | $ | ( i 591) | $ | ( i 1,155) | $ | ( i 3,060) | |||||||
Cumulative
adjustment for accounting change2 | ( i 8) | ( i 111) | ( i 124) | ( i 194) | ( i 437) | ||||||||||||
OCI during the period | ( i 114) | ( i 272) | i 137 | i 1,454 | i 1,205 | ||||||||||||
December 31, 2018 | ( i 889) | ( i 930) | ( i 578) | i 105 | ( i 2,292) | ||||||||||||
OCI during the period | ( i 8) | i 1,137 | ( i 66) | ( i 1,559) | ( i 496) | ||||||||||||
December 31, 2019 | ( i 897) | i 207 | ( i 644) | ( i 1,454) | ( i 2,788) | ||||||||||||
OCI during the period | i 102 | i 1,580 | i 146 | ( i 1,002) | i 826 | ||||||||||||
December 31, 2020 | $ | ( i 795) | $ | i 1,787 | $ | ( i 498) | $ | ( i 2,456) | $ | ( i 1,962) |
2020 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non- controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | i 74 | $ | i 99 | $ | i 173 | $ | i 68 | $ | i 105 | |||||||
Reclassified to earnings | ( i 3) | i — | ( i 3) | i — | ( i 3) | ||||||||||||
Net OCI | $ | i 71 | $ | i 99 | $ | i 170 | $ | i 68 | $ | i 102 | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | i 2,194 | $ | ( i 508) | $ | i 1,686 | $ | i — | $ | i 1,686 | |||||||
Reclassified to earnings | ( i 137) | i 31 | ( i 106) | i — | ( i 106) | ||||||||||||
Net OCI | $ | i 2,057 | $ | ( i 477) | $ | i 1,580 | $ | i — | $ | i 1,580 | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | i 162 | $ | ( i 34) | $ | i 128 | $ | i — | $ | i 128 | |||||||
Reclassified to earnings | i 23 | ( i 5) | i 18 | i — | i 18 | ||||||||||||
Net OCI | $ | i 185 | $ | ( i 39) | $ | i 146 | $ | i — | $ | i 146 | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | ( i 1,385) | $ | i 337 | $ | ( i 1,048) | $ | ( i 26) | $ | ( i 1,022) | |||||||
Reclassified to earnings | i 26 | ( i 6) | i 20 | i — | i 20 | ||||||||||||
Net OCI | $ | ( i 1,359) | $ | i 331 | $ | ( i 1,028) | $ | ( i 26) | $ | ( i 1,002) |
2019 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non- controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | i 6 | $ | ( i 3) | $ | i 3 | $ | i 11 | $ | ( i 8) | |||||||
Reclassified to earnings | i — | i — | i — | i — | i — | ||||||||||||
Net OCI | $ | i 6 | $ | ( i 3) | $ | i 3 | $ | i 11 | $ | ( i 8) | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | i 1,588 | $ | ( i 373) | $ | i 1,215 | $ | i — | $ | i 1,215 | |||||||
Reclassified to earnings | ( i 103) | i 25 | ( i 78) | i — | ( i 78) | ||||||||||||
Net OCI | $ | i 1,485 | $ | ( i 348) | $ | i 1,137 | $ | i — | $ | i 1,137 | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | ( i 98) | $ | i 25 | $ | ( i 73) | $ | i — | $ | ( i 73) | |||||||
Reclassified to earnings | i 12 | ( i 5) | i 7 | i — | i 7 | ||||||||||||
Net OCI | $ | ( i 86) | $ | i 20 | $ | ( i 66) | $ | i — | $ | ( i 66) | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | ( i 2,181) | $ | i 533 | $ | ( i 1,648) | $ | ( i 80) | $ | ( i 1,568) | |||||||
Reclassified to earnings | i 11 | ( i 2) | i 9 | i — | i 9 | ||||||||||||
Net OCI | $ | ( i 2,170) | $ | i 531 | $ | ( i 1,639) | $ | ( i 80) | $ | ( i 1,559) |
December 2020 Form 10-K | 138 |
Notes to Consolidated Financial Statements |
20181 | |||||||||||||||||
$ in millions | Pre-tax Gain (Loss) | Income Tax Benefit (Provision) | After-tax Gain (Loss) | Non- controlling Interests | Net | ||||||||||||
CTA | |||||||||||||||||
OCI activity | $ | ( i 11) | $ | ( i 79) | $ | ( i 90) | $ | i 24 | $ | ( i 114) | |||||||
Reclassified to earnings | i — | i — | i — | i — | i — | ||||||||||||
Net OCI | $ | ( i 11) | $ | ( i 79) | $ | ( i 90) | $ | i 24 | $ | ( i 114) | |||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ | ( i 346) | $ | i 80 | $ | ( i 266) | $ | i — | $ | ( i 266) | |||||||
Reclassified to earnings | ( i 8) | i 2 | ( i 6) | i — | ( i 6) | ||||||||||||
Net OCI | $ | ( i 354) | $ | i 82 | $ | ( i 272) | $ | i — | $ | ( i 272) | |||||||
Pension and other | |||||||||||||||||
OCI activity | $ | i 156 | $ | ( i 37) | $ | i 119 | $ | i — | $ | i 119 | |||||||
Reclassified to earnings | i 26 | ( i 8) | i 18 | i — | i 18 | ||||||||||||
Net OCI | $ | i 182 | $ | ( i 45) | $ | i 137 | $ | i — | $ | i 137 | |||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ | i 1,947 | $ | ( i 472) | $ | i 1,475 | $ | i 63 | $ | i 1,412 | |||||||
Reclassified to earnings | i 56 | ( i 14) | i 42 | i — | i 42 | ||||||||||||
Net OCI | $ | i 2,003 | $ | ( i 486) | $ | i 1,517 | $ | i 63 | $ | i 1,454 |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Associated with net investments in subsidiaries with a non-U.S. dollar functional currency | $ | ( i 1,406) | $ | ( i 1,874) | ||||
Hedges, net of tax | i 611 | i 977 | ||||||
Total | $ | ( i 795) | $ | ( i 897) | ||||
Carrying
value of net investments in non-U.S. dollar functional currency subsidiaries subject to hedges | $ | i 15,746 | $ | i 13,440 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Interest income | |||||||||||
Investment securities | $ | i 2,282 | $ | i 2,175 | $ | i 1,744 | |||||
Loans | i 4,142 | i 4,783 | i 4,249 | ||||||||
Securities
purchased under agreements to resell and Securities borrowed1 | ( i 194) | i 3,485 | i 1,976 | ||||||||
Trading assets, net of Trading liabilities | i 2,417 | i 2,899 | i 2,392 | ||||||||
Customer
receivables and Other2 | i 1,515 | i 3,756 | i 3,531 | ||||||||
Total interest income | $ | i 10,162 | $ | i 17,098 | $ | i 13,892 | |||||
Interest expense | |||||||||||
Deposits | $ | i 953 | $ | i 1,885 | $ | i 1,255 | |||||
Borrowings | i 3,250 | i 5,052 | i 5,031 | ||||||||
Securities
sold under agreements to repurchase and Securities loaned3 | i 983 | i 2,609 | i 1,898 | ||||||||
Customer
payables and Other4 | ( i 1,337) | i 2,858 | i 1,902 | ||||||||
Total interest expense | $ | i 3,849 | $ | i 12,404 | $ | i 10,086 | |||||
Net interest | $ | i 6,313 | $ | i 4,694 | $ | i 3,806 |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Customer and other receivables | $ | i 1,652 | $ | i 1,661 | ||||
Customer and other payables | i 2,119 | i 2,223 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
RSUs | $ | i 1,170 | $ | i 1,064 | $ | i 892 | |||||
Stock options | — | — | — | ||||||||
PSUs | i 142 | i 89 | i 28 | ||||||||
Total | $ | i 1,312 | $ | i 1,153 | $ | i 920 | |||||
Retirement-eligible
awards1 | $ | i 157 | $ | i 111 | $ | i 110 |
139 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Tax benefit1 | $ | i 270 | $ | i 243 | $ | i 193 |
$ in millions | At 20201 | ||||
To be recognized in: | |||||
2021 | $ | i 383 | |||
2022 | i 159 | ||||
Thereafter | i 28 | ||||
Total | $ | i 570 |
in millions | At December 31, 2020 | ||||
Shares | i 110 |
2020 | ||||||||
shares in millions | Number of Shares | Weighted Average Award Date Fair Value | ||||||
RSUs at beginning of period | i 65 | $ | i 44.38 | |||||
Awarded | i 21 | i 55.01 | ||||||
Conversions to common stock | ( i 25) | i 39.81 | ||||||
Forfeited | ( i 1) | i 48.29 | ||||||
RSUs
at end of period1 | i 60 | $ | i 49.82 | |||||
Aggregate
intrinsic value of RSUs at end of period (dollars in millions) | $ | i 4,087 | ||||||
Weighted average award date fair value | ||||||||
RSUs awarded in 2019 | $ | i 43.05 | ||||||
RSUs awarded in 2018 | i 55.40 |
2020 | ||||||||
shares in millions | Number of Shares | Weighted Average Award Date Fair Value | ||||||
Unvested RSUs at beginning of period | i 37 | $ | i 44.58 | |||||
Awarded | i 21 | i 55.01 | ||||||
Vested | ( i 24) | i 44.12 | ||||||
Forfeited | ( i 1) | i 48.29 | ||||||
Unvested
RSUs at end of period1 | i 33 | $ | i 51.27 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Conversions to common stock | $ | i 1,295 | $ | i 1,497 | $ | i 1,790 | |||||
Vested | i 1,289 | i 1,292 | i 1,504 |
2020 | 2019 | 2018 | |||||||||
MS Adjusted ROE | $ | i 57.05 | $ | i 43.29 | $ | i 56.84 | |||||
Relative MS TSR | i 65.31 | i 48.28 | i 65.81 |
December 2020 Form 10-K | 140 |
Notes to Consolidated Financial Statements |
Risk-Free Interest Rate | Expected Stock Price Volatility | Correlation Coefficient | |||||||||
Award Year | |||||||||||
2020 | i 1.6 | % | i 24.0 | % | i 0.88 | ||||||
2019 | i 2.6 | % | i 26.5 | % | i 0.89 | ||||||
2018 | i 2.2 | % | i 26.8 | % | i 0.89 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Deferred cash-based awards | $ | i 1,263 | $ | i 1,233 | $ | i 1,174 | |||||
Return on referenced investments | i 856 | i 645 | ( i 48) | ||||||||
Total | $ | i 2,119 | $ | i 1,878 | $ | i 1,126 | |||||
Retirement-eligible
awards1 | $ | i 194 | $ | i 195 | $ | i 193 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Expense | $ | i 215 | $ | i 534 | $ | i 156 |
Pension Plans | |||||||||||
$ in millions | 2020 | 2019 | 2018 | ||||||||
Service cost, benefits earned during the period | $ | i 17 | $ | i 16 | $ | i 16 | |||||
Interest cost on projected benefit obligation | i 121 | i 139 | i 134 | ||||||||
Expected return on plan assets | ( i 77) | ( i 114) | ( i 112) | ||||||||
Net amortization of prior service cost (credit) | i 1 | i 1 | ( i 1) | ||||||||
Net amortization of actuarial loss | i 26 | i 13 | i 26 | ||||||||
Net periodic benefit expense | $ | i 88 | $ | i 55 | $ | i 63 |
Pension Plans | |||||||||||
$ in millions | 2020 | 2019 | 2018 | ||||||||
Beginning balance | $ | ( i 877) | $ | ( i 779) | $ | ( i 947) | |||||
Net gain (loss) | i 161 | ( i 112) | i 158 | ||||||||
Prior service credit (cost) | ( i 2) | i — | ( i 15) | ||||||||
Amortization of prior service cost (credit) | i 1 | i 1 | ( i 1) | ||||||||
Amortization of net loss | i 26 | i 13 | i 26 | ||||||||
Changes recognized in OCI | i 186 | ( i 98) | i 168 | ||||||||
Ending balance | $ | ( i 691) | $ | ( i 877) | $ | ( i 779) |
141 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
Pension Plans | |||||||||||
2020 | 2019 | 2018 | |||||||||
Discount rate | i i 3.08 / | % | i 4.01 | % | i 3.46 | % | |||||
Expected
long-term rate of return on plan assets | i 2.35 | % | i 3.52 | % | i 3.50 | % | |||||
Rate of future compensation increases | i 3.28 | % | i 3.34 | % | i 3.38 | % |
Pension Plans | ||||||||
$ in millions | 2020 | 2019 | ||||||
Rollforward of benefit obligation | ||||||||
Benefit obligation at beginning of year | $ | i 4,026 | $ | i 3,563 | ||||
Service cost | i 17 | i 16 | ||||||
Interest cost | i 121 | i 139 | ||||||
Actuarial
loss (gain)1 | i 362 | i 497 | ||||||
Plan amendments | i 2 | i — | ||||||
Plan settlements | ( i 2) | ( i 9) | ||||||
Benefits paid | ( i 222) | ( i 191) | ||||||
Other2 | i 30 | i 11 | ||||||
Benefit
obligation at end of year | $ | i 4,334 | $ | i 4,026 | ||||
Rollforward of fair value of plan assets | ||||||||
Fair value of plan assets at beginning of year | $ | i 3,553 | $ | i 3,203 | ||||
Actual return on plan assets | i 600 | i 499 | ||||||
Employer contributions | i 35 | i 36 | ||||||
Benefits paid | ( i 222) | ( i 191) | ||||||
Plan settlements | ( i 2) | ( i 9) | ||||||
Other2 | i 21 | i 15 | ||||||
Fair
value of plan assets at end of year | $ | i 3,985 | $ | i 3,553 | ||||
Funded (unfunded) status | $ | ( i 349) | $ | ( i 473) | ||||
Amounts recognized in the balance sheets | ||||||||
Assets | $ | i 283 | $ | i 98 | ||||
Liabilities | ( i 632) | ( i 571) | ||||||
Net amount recognized | $ | ( i 349) | $ | ( i 473) |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Pension plans | $ | i 4,318 | $ | i 4,013 |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Projected benefit obligation | $ | i 708 | $ | i 637 | ||||
Accumulated benefit obligation | i 692 | i 624 | ||||||
Fair value of plan assets | i 76 | i 66 |
Pension Plans | ||||||||
At December 31, 2020 | At December 31, 2019 | |||||||
Discount rate | i 2.43 | % | i 3.08 | % | ||||
Rate
of future compensation increase | i 3.25 | % | i 3.28 | % |
At December 31, 2020 | |||||||||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash
and cash equivalents1 | $ | i 4 | $ | i — | $ | i — | $ | i 4 | |||||||||||||||
U.S. government and agency securities | i 3,038 | i 321 | i — | i 3,359 | |||||||||||||||||||
Corporate and other debt—CDO | i — | i 4 | i — | i 4 | |||||||||||||||||||
Derivative contracts | i — | i 2 | i — | i 2 | |||||||||||||||||||
Other investments | i — | i — | i 61 | i 61 | |||||||||||||||||||
Other
receivables1 | i — | i 53 | i — | i 53 | |||||||||||||||||||
Total | $ | i 3,042 | $ | i 380 | $ | i 61 | $ | i 3,483 | |||||||||||||||
Assets Measured at NAV | |||||||||||||||||||||||
Commingled trust funds: | |||||||||||||||||||||||
Money market | i 48 | ||||||||||||||||||||||
Foreign funds: | |||||||||||||||||||||||
Fixed income | i 169 | ||||||||||||||||||||||
Liquidity | i 54 | ||||||||||||||||||||||
Targeted cash flow | i 250 | ||||||||||||||||||||||
Total | $ | i 521 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Other
payables1 | i — | ( i 19) | i — | ( i 19) | |||||||||||||||||||
Total liabilities | $ | i — | $ | ( i 19) | $ | i — | $ | ( i 19) | |||||||||||||||
Fair value of plan assets | $ | i 3,985 |
December 2020 Form 10-K | 142 |
Notes to Consolidated Financial Statements |
At December 31, 2019 | ||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Assets | ||||||||||||||
Cash and cash equivalents1 | $ | i 3 | $ | i — | $ | i — | $ | i 3 | ||||||
U.S. government and agency securities | i 2,658 | i 292 | i — | i 2,950 | ||||||||||
Corporate and other debt—CDO | i — | i 9 | i — | i 9 | ||||||||||
Other investments | i — | i — | i 53 | i 53 | ||||||||||
Other
receivables1 | i — | i 48 | i — | i 48 | ||||||||||
Total | $ | i 2,661 | $ | i 349 | $ | i 53 | $ | i 3,063 | ||||||
Assets Measured at NAV | ||||||||||||||
Commingled trust funds: | ||||||||||||||
Money market | i 137 | |||||||||||||
Foreign funds: | ||||||||||||||
Fixed income | i 136 | |||||||||||||
Liquidity | i 30 | |||||||||||||
Targeted cash flow | i 240 | |||||||||||||
Total | $ | i 543 | ||||||||||||
Liabilities | ||||||||||||||
Derivative contracts | i — | ( i 1) | i — | ( i 1) | ||||||||||
Other
payables1 | i — | ( i 52) | i — | ( i 52) | ||||||||||
Total liabilities | $ | i — | $ | ( i 53) | $ | i — | $ | ( i 53) | ||||||
Fair value of plan assets | $ | i 3,553 |
$ in millions | 2020 | 2019 | ||||||
Balance at beginning of period | $ | i 53 | $ | i 48 | ||||
Realized and unrealized gains (losses) | i 5 | i 3 | ||||||
Purchases, sales and settlements, net | i 3 | i 2 | ||||||
Balance at end of period | $ | i 61 | $ | i 53 |
143 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
At December 31, 2020 | |||||
$ in millions | Pension Plans | ||||
2021 | $ | i 153 | |||
2022 | i 155 | ||||
2023 | i 161 | ||||
2024 | i 163 | ||||
2025 | i 171 | ||||
2026-2030 | i 940 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Expense | $ | i 293 | $ | i 280 | $ | i 272 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Expense | $ | i 130 | $ | i 121 | $ | i 116 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Current | |||||||||||
U.S.: | |||||||||||
Federal | $ | i 1,641 | $ | i 873 | $ | i 686 | |||||
State and local | i 399 | i 260 | i 207 | ||||||||
Non-U.S.: | |||||||||||
U.K. | i 395 | i 166 | i 328 | ||||||||
Japan | i 185 | i 177 | i 268 | ||||||||
Hong Kong | i 185 | i 82 | i 94 | ||||||||
Other1 | i 684 | i 341 | i 318 | ||||||||
Total | $ | i 3,489 | $ | i 1,899 | $ | i 1,901 | |||||
Deferred | |||||||||||
U.S.: | |||||||||||
Federal | $ | ( i 249) | $ | i 185 | $ | i 330 | |||||
State and local | ( i 38) | i 46 | i 56 | ||||||||
Non-U.S.: | |||||||||||
U.K. | ( i 2) | i 5 | i 54 | ||||||||
Japan | i 12 | i 11 | ( i 10) | ||||||||
Hong Kong | ( i 3) | i — | ( i 3) | ||||||||
Other1 | i 30 | ( i 82) | i 22 | ||||||||
Total | $ | ( i 250) | $ | i 165 | $ | i 449 | |||||
Provision
for income taxes from continuing operations | $ | i 3,239 | $ | i 2,064 | $ | i 2,350 | |||||
Provision for income taxes from discontinued operations | $ | i — | $ | i — | $ | ( i 1) |
2020 | 2019 | 2018 | |||||||||
U.S. federal statutory income tax rate | i 21.0 | i 21.0 | % | i 21.0 | % | ||||||
U.S.
state and local income taxes, net of U.S. federal income tax benefits | i 2.0 | i 2.2 | i 2.0 | ||||||||
Domestic tax credits and tax exempt income | ( i 0.8) | ( i 1.6) | ( i 1.3) | ||||||||
Non-U.S. earnings | i 1.7 | ( i 0.8) | i 1.3 | ||||||||
Employee share-based awards | ( i 0.7) | ( i 1.1) | ( i 1.5) | ||||||||
Other | ( i 0.7) | ( i 1.4) | ( i 0.6) | ||||||||
Effective income tax rate | i 22.5 | % | i 18.3 | % | i 20.9 | % |
December 2020 Form 10-K | 144 |
Notes to Consolidated Financial Statements |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Gross deferred tax assets | ||||||||
Net operating loss and tax credit carryforwards | $ | i 330 | $ | i 287 | ||||
Employee compensation and benefit plans | i 2,248 | i 2,075 | ||||||
Allowance for credit losses and other reserves | i 669 | i 318 | ||||||
Valuation of inventory, investments and receivables | i 19 | i 368 | ||||||
Other | i 43 | i — | ||||||
Total deferred tax assets | i 3,309 | i 3,048 | ||||||
Deferred tax assets valuation allowance | i 236 | i 156 | ||||||
Deferred
tax assets after valuation allowance | $ | i 3,073 | $ | i 2,892 | ||||
Gross deferred tax liabilities | ||||||||
Fixed assets | i 1,130 | i 983 | ||||||
Intangibles, goodwill and other | i 1,156 | i 411 | ||||||
Total deferred tax liabilities | $ | i 2,286 | $ | i 1,394 | ||||
Net deferred tax assets | $ | i 787 | $ | i 1,498 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Balance at beginning of period | $ | i 755 | $ | i 1,080 | $ | i 1,594 | |||||
Increase
based on tax positions related to the current period | i 139 | i 57 | i 83 | ||||||||
Increase
based on tax positions related to prior periods | i 178 | i 61 | i 34 | ||||||||
Increase based on the acquisition of E*TRADE | i 26 | i — | i — | ||||||||
Decrease
based on tax positions related to prior periods | ( i 297) | ( i 419) | ( i 404) | ||||||||
Decreases
related to settlements with taxing authorities | ( i 36) | ( i 17) | ( i 139) | ||||||||
Decreases
related to lapse of statute of limitations | ( i 10) | ( i 7) | ( i 88) | ||||||||
Balance at end of period | $ | i 755 | $ | i 755 | $ | i 1,080 | |||||
Net
unrecognized tax benefits1 | $ | i 665 | $ | i 549 | $ | i 746 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Recognized in income statements | $ | i 56 | $ | i 8 | $ | ( i 40) | |||||
Accrued at end of period | i 134 | i 92 | i 91 |
Jurisdiction | Tax Year | ||||
U.S. | 2017 | ||||
New York State and New York City | 2010 | ||||
Hong Kong | 2014 | ||||
U.K. | 2011 | ||||
Japan | 2015 |
145 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
2020 | |||||||||||||||||
$ in millions | IS | WM | IM | I/E | Total | ||||||||||||
Investment banking | $ | i 7,204 | $ | i 559 | $ | i — | $ | ( i 89) | $ | i 7,674 | |||||||
Trading | i 13,106 | i 844 | ( i 34) | i 76 | i 13,992 | ||||||||||||
Investments | i 166 | i 12 | i 808 | i — | i 986 | ||||||||||||
Commissions
and fees1 | i 2,935 | i 2,291 | i 1 | ( i 376) | i 4,851 | ||||||||||||
Asset
management1 | i 461 | i 10,955 | i 3,013 | ( i 157) | i 14,272 | ||||||||||||
Other | ( i 214) | i 372 | ( i 39) | ( i 9) | i 110 | ||||||||||||
Total non-interest revenues | i 23,658 | i 15,033 | i 3,749 | ( i 555) | i 41,885 | ||||||||||||
Interest income | i 5,809 | i 4,771 | i 14 | ( i 432) | i 10,162 | ||||||||||||
Interest expense | i 3,519 | i 749 | i 29 | ( i 448) | i 3,849 | ||||||||||||
Net interest | i 2,290 | i 4,022 | ( i 15) | i 16 | i 6,313 | ||||||||||||
Net revenues | $ | i 25,948 | $ | i 19,055 | $ | i 3,734 | $ | ( i 539) | $ | i 48,198 | |||||||
Income
from continuing operations before income taxes | $ | i 9,151 | $ | i 4,387 | $ | i 870 | $ | i 10 | $ | i 14,418 | |||||||
Provision for income taxes | i 2,040 | i 1,026 | i 171 | i 2 | i 3,239 | ||||||||||||
Income
from continuing operations | i 7,111 | i 3,361 | i 699 | i 8 | i 11,179 | ||||||||||||
Income
(loss) from discontinued operations, net of income taxes | i — | i — | i — | i — | i — | ||||||||||||
Net income | i 7,111 | i 3,361 | i 699 | i 8 | i 11,179 | ||||||||||||
Net
income applicable to noncontrolling interests | i 99 | i — | i 84 | i — | i 183 | ||||||||||||
Net
income applicable to Morgan Stanley | $ | i 7,012 | $ | i 3,361 | $ | i 615 | $ | i 8 | $ | i 10,996 |
2019 | |||||||||||||||||
$ in millions | IS | WM | IM | I/E | Total | ||||||||||||
Investment banking | $ | i 5,734 | $ | i 509 | $ | i — | $ | ( i 80) | $ | i 6,163 | |||||||
Trading | i 10,318 | i 734 | ( i 8) | i 51 | i 11,095 | ||||||||||||
Investments | i 325 | i 2 | i 1,213 | i — | i 1,540 | ||||||||||||
Commissions
and fees1 | i 2,484 | i 1,726 | i 1 | ( i 292) | i 3,919 | ||||||||||||
Asset
management1 | i 413 | i 10,199 | i 2,629 | ( i 158) | i 13,083 | ||||||||||||
Other | i 632 | i 345 | ( i 46) | ( i 6) | i 925 | ||||||||||||
Total
non-interest revenues | i 19,906 | i 13,515 | i 3,789 | ( i 485) | i 36,725 | ||||||||||||
Interest income | i 12,193 | i 5,467 | i 20 | ( i 582) | i 17,098 | ||||||||||||
Interest expense | i 11,713 | i 1,245 | i 46 | ( i 600) | i 12,404 | ||||||||||||
Net interest | i 480 | i 4,222 | ( i 26) | i 18 | i 4,694 | ||||||||||||
Net revenues | $ | i 20,386 | $ | i 17,737 | $ | i 3,763 | $ | ( i 467) | $ | i 41,419 | |||||||
Income
from continuing operations before income taxes2 | $ | i 5,490 | $ | i 4,832 | $ | i 985 | $ | ( i 6) | $ | i 11,301 | |||||||
Provision for income taxes | i 769 | i 1,104 | i 193 | ( i 2) | i 2,064 | ||||||||||||
Income from continuing operations | i 4,721 | i 3,728 | i 792 | ( i 4) | i 9,237 | ||||||||||||
Income
(loss) from discontinued operations, net of income taxes | i — | i — | i — | i — | i — | ||||||||||||
Net income | i 4,721 | i 3,728 | i 792 | ( i 4) | i 9,237 | ||||||||||||
Net
income applicable to noncontrolling interests | i 122 | i — | i 73 | i — | i 195 | ||||||||||||
Net
income applicable to Morgan Stanley | $ | i 4,599 | $ | i 3,728 | $ | i 719 | $ | ( i 4) | $ | i 9,042 |
2018 | |||||||||||||||||
$ in millions | IS | WM | IM | I/E | Total | ||||||||||||
Investment banking | $ | i 6,088 | $ | i 475 | $ | i — | $ | ( i 81) | $ | i 6,482 | |||||||
Trading | i 11,191 | i 279 | i 25 | i 56 | i 11,551 | ||||||||||||
Investments | i 182 | i 1 | i 254 | i — | i 437 | ||||||||||||
Commissions
and fees1 | i 2,671 | i 1,804 | i — | ( i 285) | i 4,190 | ||||||||||||
Asset
management1 | i 421 | i 10,158 | i 2,468 | ( i 149) | i 12,898 | ||||||||||||
Other | i 535 | i 248 | ( i 30) | ( i 10) | i 743 | ||||||||||||
Total
non-interest revenues | i 21,088 | i 12,965 | i 2,717 | ( i 469) | i 36,301 | ||||||||||||
Interest income | i 9,271 | i 5,498 | i 57 | ( i 934) | i 13,892 | ||||||||||||
Interest expense | i 9,777 | i 1,221 | i 28 | ( i 940) | i 10,086 | ||||||||||||
Net interest | ( i 506) | i 4,277 | i 29 | i 6 | i 3,806 | ||||||||||||
Net revenues | $ | i 20,582 | $ | i 17,242 | $ | i 2,746 | $ | ( i 463) | $ | i 40,107 | |||||||
Income
from continuing operations before income taxes | $ | i 6,260 | $ | i 4,521 | $ | i 464 | $ | ( i 8) | $ | i 11,237 | |||||||
Provision for income taxes | i 1,230 | i 1,049 | i 73 | ( i 2) | i 2,350 | ||||||||||||
Income
from continuing operations | i 5,030 | i 3,472 | i 391 | ( i 6) | i 8,887 | ||||||||||||
Income
(loss) from discontinued operations, net of income taxes | ( i 6) | i — | i 2 | i — | ( i 4) | ||||||||||||
Net income | i 5,024 | i 3,472 | i 393 | ( i 6) | i 8,883 | ||||||||||||
Net
income applicable to noncontrolling interests | i 118 | i — | i 17 | i — | i 135 | ||||||||||||
Net
income applicable to Morgan Stanley | $ | i 4,906 | $ | i 3,472 | $ | i 376 | $ | ( i 6) | $ | i 8,748 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Institutional Securities—Advisory | $ | i 2,008 | $ | i 2,116 | $ | i 2,436 | |||||
Institutional Securities—Underwriting | i 5,196 | i 3,618 | i 3,652 | ||||||||
Firm Investment banking revenues from contracts with customers | i 92 | % | i 90 | % | i 86 | % |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Interest rate | $ | i 2,978 | $ | i 2,773 | $ | i 2,696 | |||||
Foreign exchange | i 902 | i 395 | i 914 | ||||||||
Equity
security and index1 | i 6,200 | i 5,246 | i 6,157 | ||||||||
Commodity and other | i 1,771 | i 1,438 | i 1,174 | ||||||||
Credit | i 2,141 | i 1,243 | i 610 | ||||||||
Total | $ | i 13,992 | $ | i 11,095 | $ | i 11,551 |
December 2020 Form 10-K | 146 |
Notes to Consolidated Financial Statements |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Net cumulative unrealized performance-based fees at risk of reversing | $ | i 735 | $ | i 774 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Fee waivers | $ | i 135 | $ | i 43 | $ | i 56 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Americas | $ | i 35,017 | $ | i 30,226 | $ | i 29,301 | |||||
EMEA | i 6,430 | i 6,061 | i 6,092 | ||||||||
Asia | i 6,751 | i 5,132 | i 4,714 | ||||||||
Total | $ | i 48,198 | $ | i 41,419 | $ | i 40,107 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
U.S. | $ | i 10,027 | $ | i 9,464 | $ | i 7,804 | |||||
Non-U.S.1 | i 4,391 | i 1,837 | i 3,433 | ||||||||
Total | $ | i 14,418 | $ | i 11,301 | $ | i 11,237 |
$ in millions | 2020 | 2019 | 2018 | ||||||||
IS | $ | ( i 68) | $ | ( i 400) | $ | ( i 286) | |||||
WM | ( i 50) | ( i 50) | ( i 50) | ||||||||
IM | ( i 4) | ( i 25) | ( i 32) | ||||||||
Total | $ | ( i 122) | $ | ( i 475) | $ | ( i 368) |
$ in millions | 2020 | 2019 | ||||||
Non-interest revenues | $ | i 2,298 | $ | i 2,705 |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Customer and other receivables | $ | i 3,200 | $ | i 2,916 |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Institutional Securities | $ | i 753,322 | $ | i 691,201 | ||||
Wealth Management | i 355,595 | i 197,682 | ||||||
Investment Management | i 6,945 | i 6,546 | ||||||
Total1 | $ | i 1,115,862 | $ | i 895,429 |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Americas | $ | i 815,048 | $ | i 622,979 | ||||
EMEA | i 194,598 | i 185,093 | ||||||
Asia | i 106,216 | i 87,357 | ||||||
Total | $ | i 1,115,862 | $ | i 895,429 |
147 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Revenues | |||||||||||
Dividends from bank subsidiaries | $ | i 2,811 | $ | i 3,531 | $ | i 2,969 | |||||
Dividends
from BHC and non-bank subsidiaries | i 1,170 | i 1,998 | i 2,004 | ||||||||
Total dividends from subsidiaries | i 3,981 | i 5,529 | i 4,973 | ||||||||
Trading | ( i 244) | ( i 54) | i 54 | ||||||||
Other | i 51 | i 80 | ( i 5) | ||||||||
Total non-interest revenues | i 3,788 | i 5,555 | i 5,022 | ||||||||
Interest income | i 3,666 | i 5,121 | i 5,172 | ||||||||
Interest expense | i 3,087 | i 4,661 | i 4,816 | ||||||||
Net interest | i 579 | i 460 | i 356 | ||||||||
Net revenues | i 4,367 | i 6,015 | i 5,378 | ||||||||
Non-interest expenses | i 387 | i 300 | i 225 | ||||||||
Income before income taxes | i 3,980 | i 5,715 | i 5,153 | ||||||||
Provision for (benefit from) income taxes | ( i 109) | ( i 73) | i 22 | ||||||||
Net
income before undistributed gain of subsidiaries | i 4,089 | i 5,788 | i 5,131 | ||||||||
Undistributed gain of subsidiaries | i 6,907 | i 3,254 | i 3,617 | ||||||||
Net income | i 10,996 | i 9,042 | i 8,748 | ||||||||
Other
comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | i 102 | ( i 8) | ( i 114) | ||||||||
Change
in net unrealized gains (losses) on available-for-sale securities | i 1,580 | i 1,137 | ( i 272) | ||||||||
Pensions and other | i 146 | ( i 66) | i 137 | ||||||||
Change in net debt valuation adjustment | ( i 1,002) | ( i 1,559) | i 1,454 | ||||||||
Comprehensive income | $ | i 11,822 | $ | i 8,546 | $ | i 9,953 | |||||
Net income | $ | i 10,996 | $ | i 9,042 | $ | i 8,748 | |||||
Preferred stock dividends and other | i 496 | i 530 | i 526 | ||||||||
Earnings
applicable to Morgan Stanley common shareholders | $ | i 10,500 | $ | i 8,512 | $ | i 8,222 |
$ in millions, except share data | At December 31, 2020 | At December 31, 2019 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | i 7,102 | $ | i 8,010 | ||||
Trading assets at fair value | i 6,862 | i 5,747 | ||||||
Investment
securities (includes $ i 20,037 and $ i 19,824 at fair value;
$ i 24,248 and $ i 4,606
were pledged to various parties) | i 39,225 | i 37,253 | ||||||
Securities purchased under agreement to resell to affiliates | i 34,698 | i 10,114 | ||||||
Advances to subsidiaries: | ||||||||
Bank and BHC | i 22,692 | i 27,667 | ||||||
Non-bank | i 121,731 | i 104,345 | ||||||
Equity investments in subsidiaries: | ||||||||
Bank and BHC | i 52,951 | i 36,093 | ||||||
Non-bank | i 47,450 | i 43,667 | ||||||
Other assets | i 454 | i 244 | ||||||
Total assets | $ | i 333,165 | $ | i 273,140 | ||||
Liabilities | ||||||||
Trading liabilities at fair value | $ | i 1,623 | $ | i 1,130 | ||||
Securities sold under agreements to repurchase from affiliates | i 24,349 | i 4,631 | ||||||
Payables
to and advances from subsidiaries | i 43,252 | i 35,470 | ||||||
Other liabilities and accrued expenses | i 2,181 | i 2,153 | ||||||
Borrowings
(includes $ i 18,804 and $ i 20,461 at fair value) | i 159,979 | i 148,207 | ||||||
Total liabilities | i 231,384 | i 191,591 | ||||||
Commitments and contingent liabilities (see Note 15) | ||||||||
Equity | ||||||||
Preferred stock | i 9,250 | i 8,520 | ||||||
Common
stock, $ i i 0.01 / par value: | ||||||||
Shares
authorized: i i 3,500,000,000 / ;
Shares issued: i i 2,038,893,979 / ;
Shares outstanding: i 1,809,624,144 and i 1,593,973,680 | i 20 | i 20 | ||||||
Additional paid-in capital | i 25,546 | i 23,935 | ||||||
Retained earnings | i 78,694 | i 70,589 | ||||||
Employee stock trusts | i 3,043 | i 2,918 | ||||||
Accumulated
other comprehensive income (loss) | ( i 1,962) | ( i 2,788) | ||||||
Common
stock held in treasury at cost, $ i i 0.01 /
par value ( i 229,269,835 and i 444,920,299 shares) | ( i 9,767) | ( i 18,727) | ||||||
Common
stock issued to employee stock trusts | ( i 3,043) | ( i 2,918) | ||||||
Total shareholders’ equity | i 101,781 | i 81,549 | ||||||
Total liabilities and equity | $ | i 333,165 | $ | i 273,140 |
December 2020 Form 10-K | 148 |
Notes to Consolidated Financial Statements |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Net
cash provided by (used for) operating activities | $ | i 14,202 | $ | i 24,175 | $ | ( i 1,136) | |||||
Cash flows from investing activities | |||||||||||
Proceeds from (payments for): | |||||||||||
Investment securities: | |||||||||||
Purchases | ( i 9,310) | ( i 22,408) | ( i 8,155) | ||||||||
Proceeds from sales | i 2,013 | i 4,671 | i 1,252 | ||||||||
Proceeds from paydowns and maturities | i 5,651 | i 3,157 | i 3,729 | ||||||||
Securities
purchased under agreements to resell with affiliates | ( i 24,584) | i 15,422 | i 13,057 | ||||||||
Securities
sold under agreements to repurchase with affiliates | i 19,719 | i 4,631 | ( i 8,753) | ||||||||
Advances to and investments in subsidiaries | ( i 13,832) | ( i 9,210) | i 11,841 | ||||||||
Net
cash provided by (used for) investing activities | ( i 20,343) | ( i 3,737) | i 12,971 | ||||||||
Cash flows from financing activities | |||||||||||
Proceeds from: | |||||||||||
Issuance of preferred stock, net of issuance costs | i — | i 497 | i — | ||||||||
Issuance of Borrowings | i 25,587 | i 8,337 | i 14,918 | ||||||||
Payments for: | |||||||||||
Borrowings | ( i 22,105) | ( i 24,282) | ( i 21,418) | ||||||||
Repurchases
of common stock and employee tax withholdings | ( i 1,890) | ( i 5,954) | ( i 5,566) | ||||||||
Cash dividends | ( i 2,739) | ( i 2,627) | ( i 2,375) | ||||||||
Net change in advances from subsidiaries | i 7,194 | i 4,378 | i 2,122 | ||||||||
Other financing activities | ( i 498) | i 12 | i — | ||||||||
Net
cash provided by (used for) financing activities | i 5,549 | ( i 19,639) | ( i 12,319) | ||||||||
Effect
of exchange rate changes on cash and cash equivalents | ( i 316) | ( i 271) | ( i 166) | ||||||||
Net
increase (decrease) in cash and cash equivalents | ( i 908) | i 528 | ( i 650) | ||||||||
Cash
and cash equivalents, at beginning of period | i 8,010 | i 7,482 | i 8,132 | ||||||||
Cash and cash equivalents, at end of period | $ | i 7,102 | $ | i 8,010 | $ | i 7,482 | |||||
Cash and cash equivalents: | |||||||||||
Cash and due from banks | $ | i 20 | $ | i 9 | $ | i 6 | |||||
Deposits with bank subsidiaries | i 7,082 | i 8,001 | i 7,476 | ||||||||
Cash and cash equivalents, at end of period | $ | i 7,102 | $ | i 8,010 | $ | i 7,482 | |||||
Restricted cash | $ | i 381 | $ | i — | $ | i — | |||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Cash payments for: | |||||||||||
Interest | $ | i 3,472 | $ | i 4,677 | $ | i 4,798 | |||||
Income
taxes, net of refunds1 | i 1,364 | i 1,186 | i 437 |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Senior | $ | i 148,885 | $ | i 137,138 | ||||
Subordinated | i 11,094 | i 10,570 | ||||||
Total | $ | i 159,979 | $ | i 147,708 |
149 | December 2020 Form 10-K |
Notes to Consolidated Financial Statements |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Aggregate balance | $ | i 39,745 | $ | i 32,996 |
$ in millions | At December 31, 2020 | At December 31, 2019 | ||||||
Aggregate balance1 | $ | i 865 | $ | i 925 |
December 2020 Form 10-K | 150 |
Financial Data Supplement (Unaudited) |
2020 | 2019 | |||||||||||||||||||
$ in millions | Average Daily Balance | Interest | Average Rate | Average Daily Balance | Interest | Average Rate | ||||||||||||||
Interest earning assets | ||||||||||||||||||||
Investment securities1 | $ | 136,502 | $ | 2,282 | 1.7 | % | $ | 101,696 | $ | 2,175 | 2.1 | % | ||||||||
Loans1 | 143,350 | 4,142 | 2.9 | 121,002 | 4,783 | 4.0 | ||||||||||||||
Securities
purchased under agreements to resell and Securities borrowed2: | ||||||||||||||||||||
U.S. | 130,525 | 55 | — | 142,089 | 3,378 | 2.4 | ||||||||||||||
Non-U.S. | 59,099 | (249) | (0.4) | 76,577 | 107 | 0.1 | ||||||||||||||
Trading
assets, net of Trading liabilities3: | ||||||||||||||||||||
U.S. | 76,273 | 2,000 | 2.6 | 77,481 | 2,531 | 3.3 | ||||||||||||||
Non-U.S. | 22,604 | 417 | 1.8 | 14,654 | 368 | 2.5 | ||||||||||||||
Customer
receivables and Other4: | ||||||||||||||||||||
U.S. | 87,775 | 1,188 | 1.4 | 61,501 | 2,697 | 4.4 | ||||||||||||||
Non-U.S. | 63,301 | 327 | 0.5 | 58,601 | 1,059 | 1.8 | ||||||||||||||
Total | $ | 719,429 | $ | 10,162 | 1.4 | % | $ | 653,601 | $ | 17,098 | 2.6 | % | ||||||||
Interest bearing liabilities | ||||||||||||||||||||
Deposits1 | $ | 241,487 | $ | 953 | 0.4 | % | $ | 180,116 | $ | 1,885 | 1.0 | % | ||||||||
Borrowings1,
5 | 202,498 | 3,250 | 1.6 | 192,770 | 5,052 | 2.6 | ||||||||||||||
Securities sold under agreements to repurchase and Securities loaned6: | ||||||||||||||||||||
U.S. | 29,983 | 532 | 1.8 | 32,437 | 1,916 | 5.9 | ||||||||||||||
Non-U.S. | 28,363 | 451 | 1.6 | 31,808 | 693 | 2.2 | ||||||||||||||
Customer
payables and Other7: | ||||||||||||||||||||
U.S. | 125,982 | (1,176) | (0.9) | 118,775 | 1,792 | 1.5 | ||||||||||||||
Non-U.S. | 64,958 | (161) | (0.2) | 65,196 | 1,066 | 1.6 | ||||||||||||||
Total | $ | 693,271 | $ | 3,849 | 0.6 | % | $ | 621,102 | $ | 12,404 | 2.0 | % | ||||||||
Net
interest income and net interest rate spread | $ | 6,313 | 0.8 | % | $ | 4,694 | 0.6 | % |
2020 versus 2019 | |||||||||||
Increase (Decrease) Due to Change in: | |||||||||||
$ in millions | Volume | Rate | Net Change | ||||||||
Interest earning assets | |||||||||||
Investment securities1 | $ | 744 | $ | (637) | $ | 107 | |||||
Loans1 | 883 | (1,524) | (641) | ||||||||
Securities
purchased under agreements to resell and Securities borrowed2: | |||||||||||
U.S. | (275) | (3,048) | (3,323) | ||||||||
Non-U.S. | (24) | (332) | (356) | ||||||||
Trading assets, net of Trading liabilities3: | |||||||||||
U.S. | (39) | (492) | (531) | ||||||||
Non-U.S. | 200 | (151) | 49 | ||||||||
Customer
receivables and Other4: | |||||||||||
U.S. | 1,152 | (2,661) | (1,509) | ||||||||
Non-U.S. | 85 | (817) | (732) | ||||||||
Change in interest income | $ | 2,726 | $ | (9,662) | $ | (6,936) | |||||
Interest bearing liabilities | |||||||||||
Deposits1 | $ | 642 | $ | (1,574) | $ | (932) | |||||
Borrowings1, 5 | 255 | (2,057) | (1,802) | ||||||||
Securities
sold under agreements to repurchase and Securities loaned6: | |||||||||||
U.S. | (145) | (1,239) | (1,384) | ||||||||
Non-U.S. | (75) | (167) | (242) | ||||||||
Customer payables and Other7: | |||||||||||
U.S. | 109 | (3,077) | (2,968) | ||||||||
Non-U.S. | (4) | (1,223) | (1,227) | ||||||||
Change in interest expense | $ | 782 | $ | (9,337) | $ | (8,555) | |||||
Change in net interest income | $ | 1,944 | $ | (325) | $ | 1,619 |
151 | December 2020 Form 10-K |
Financial Data Supplement (Unaudited) |
2018 | |||||||||||
$ in millions | Average Daily Balance | Interest | Average Rate | ||||||||
Interest earning assets | |||||||||||
Investment securities1 | $ | 81,977 | $ | 1,744 | 2.1 | % | |||||
Loans1 | 109,681 | 4,249 | 3.9 | ||||||||
Securities
purchased under agreements to resell and Securities borrowed2: | |||||||||||
U.S. | 134,223 | 2,262 | 1.7 | ||||||||
Non-U.S. | 86,430 | (286) | (0.3) | ||||||||
Trading assets, net of Trading liabilities3: | |||||||||||
U.S. | 57,780 | 2,144 | 3.7 | ||||||||
Non-U.S. | 9,014 | 248 | 2.8 | ||||||||
Customer
receivables and Other4: | |||||||||||
U.S. | 73,695 | 2,592 | 3.5 | ||||||||
Non-U.S. | 54,396 | 939 | 1.7 | ||||||||
Total | $ | 607,196 | $ | 13,892 | 2.3 | % | |||||
Interest bearing liabilities | |||||||||||
Deposits1 | $ | 169,226 | $ | 1,255 | 0.7 | % | |||||
Borrowings1, 5 | 191,692 | 5,031 | 2.6 | ||||||||
Securities sold under agreements
to repurchase and Securities loaned6: | |||||||||||
U.S. | 24,426 | 1,408 | 5.8 | ||||||||
Non-U.S. | 37,319 | 490 | 1.3 | ||||||||
Customer payables and Other7: | |||||||||||
U.S. | 120,228 | 1,061 | 0.9 | ||||||||
Non-U.S. | 70,855 | 841 | 1.2 | ||||||||
Total | $ | 613,746 | $ | 10,086 | 1.6 | % | |||||
Net
interest income and net interest rate spread | $ | 3,806 | 0.7 | % |
2019 versus 2018 | |||||||||||
Increase (Decrease) Due to Change in: | |||||||||||
$ in millions | Volume | Rate | Net Change | ||||||||
Interest earning assets | |||||||||||
Investment securities1 | $ | 420 | $ | 11 | $ | 431 | |||||
Loans1 | 439 | 95 | 534 | ||||||||
Securities
purchased under agreements to resell and Securities borrowed2: | |||||||||||
U.S. | 133 | 983 | 1,116 | ||||||||
Non-U.S. | 33 | 360 | 393 | ||||||||
Trading assets, net of Trading liabilities3: | |||||||||||
U.S. | 731 | (344) | 387 | ||||||||
Non-U.S. | 155 | (35) | 120 | ||||||||
Customer
receivables and Other4: | |||||||||||
U.S. | (429) | 534 | 105 | ||||||||
Non-U.S. | 73 | 47 | 120 | ||||||||
Change in interest income | $ | 1,555 | $ | 1,651 | $ | 3,206 | |||||
Interest bearing liabilities | |||||||||||
Deposits1 | $ | 81 | $ | 549 | $ | 630 | |||||
Borrowings1, 5 | 28 | (7) | 21 | ||||||||
Securities sold under agreements to repurchase and Securities
loaned6: | |||||||||||
U.S. | 462 | 46 | 508 | ||||||||
Non-U.S. | (72) | 275 | 203 | ||||||||
Customer payables and Other7: | |||||||||||
U.S. | (13) | 744 | 731 | ||||||||
Non-U.S. | (67) | 292 | 225 | ||||||||
Change in interest expense | $ | 419 | $ | 1,899 | $ | 2,318 | |||||
Change in net interest income | $ | 1,136 | $ | (248) | $ | 888 |
Average Daily Deposits | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
$ in millions | Average Amount | Average Rate | Average Amount | Average Rate | Average Amount | Average Rate | ||||||||||||||
Deposits1: | ||||||||||||||||||||
Savings | $ | 202,035 | 0.1 | % | $ | 144,017 | 0.6 | % | $ | 142,753 | 0.4 | % | ||||||||
Time | 39,452 | 1.8 | % | 36,099 | 2.8 | % | 26,473 | 2.4 | % | |||||||||||
Total | $ | 241,487 | 0.4 | % | $ | 180,116 | 1.0 | % | $ | 169,226 | 0.7 | % |
December 2020 Form 10-K | 152 |
Financial Data Supplement (Unaudited) |
2020 | 2019 | 2018 | |||||||||
Net income to average total assets | 1.1 | % | 1.0 | % | 1.0 | % | |||||
ROE1 | 13.1 | % | 11.7 | % | 11.8 | % | |||||
Return
on total equity2 | 12.4 | % | 11.1 | % | 11.1 | % | |||||
Dividend payout ratio3 | 21.7 | % | 25.0 | % | 23.3 | % | |||||
Total average common equity to average total assets | 8.2 | % | 8.2 | % | 8.1 | % | |||||
Total average equity to average total assets | 9.1 | % | 9.2 | % | 9.1 | % | |||||
Net charge-off ratio4 | 0.07 | % | — | % | (0.05) | % |
$ in millions | 2020 | 2019 | 2018 | ||||||||
Period-end balance | $ | 58,318 | $ | 62,706 | $ | 61,667 | |||||
Average balance1 | 58,346 | 64,245 | 61,745 | ||||||||
Maximum balance at any month-end | 61,336 | 78,327 | 72,161 | ||||||||
Weighted average interest rate during the period2 | 1.7 | % | 4.1 | % | 3.1 | % | |||||
Weighted average interest rate on period-end balance2 | 0.6 | % | 4.0 | % | 4.1 | % |
At December 31, 2020 | |||||||||||||||||
$ in millions | Banks | Governments | Non-banking Financial Institutions | Other | Total | ||||||||||||
Cayman Islands | $ | 20 | $ | 2 | $ | 40,347 | $ | 12,477 | $ | 52,846 | |||||||
Japan | 11,592 | 8,659 | 26,340 | 6,013 | 52,604 | ||||||||||||
United Kingdom | 11,659 | 12,079 | 17,796 | 8,561 | 50,095 | ||||||||||||
France | 3,569 | 3,552 | 27,078 | 8,474 | 42,673 | ||||||||||||
Germany | 1,699 | 3,715 | 6,919 | 5,457 | 17,790 | ||||||||||||
Ireland | 123 | 65 | 10,816 | 4,232 | 15,236 | ||||||||||||
China | 1,122 | 424 | 678 | 11,863 | 14,087 | ||||||||||||
Canada | 7,624 | 507 | 1,600 | 3,299 | 13,030 | ||||||||||||
Brazil | 1,337 | 3,587 | 1,339 | 6,656 | 12,919 | ||||||||||||
At December 31, 2019 | |||||||||||||||||
$ in millions | Banks | Governments | Non-banking Financial Institutions | Other | Total | ||||||||||||
Japan | $ | 18,282 | $ | 7,146 | $ | 20,376 | $ | 11,565 | $ | 57,369 | |||||||
U.K. | 6,021 | 11,515 | 15,623 | 10,431 | 43,590 | ||||||||||||
Cayman Islands | 12 | — | 24,693 | 5,987 | 30,692 | ||||||||||||
France | 4,454 | 1,927 | 9,447 | 6,363 | 22,191 | ||||||||||||
Canada | 6,794 | 1,205 | 2,606 | 4,163 | 14,768 | ||||||||||||
Ireland | 274 | 126 | 9,161 | 4,410 | 13,971 | ||||||||||||
European
Central Bank | — | 11,464 | — | — | 11,464 | ||||||||||||
China | 1,451 | 168 | 1,320 | 7,907 | 10,846 | ||||||||||||
Brazil | 2,765 | 2,116 | 1,287 | 4,509 | 10,677 | ||||||||||||
Luxembourg | 82 | 27 | 7,596 | 1,947 | 9,652 | ||||||||||||
Australia | 2,265 | 2,366 | 2,481 | 2,486 | 9,598 | ||||||||||||
Netherlands | 2,149 | 107 | 2,163 | 4,788 | 9,207 | ||||||||||||
Germany | 1,210 | 838 | 2,444 | 4,471 | 8,963 |
At December 31, 2018 | |||||||||||||||||
$ in millions | Banks | Governments | Non-banking Financial Institutions | Other | Total | ||||||||||||
Japan | $ | 16,130 | $ | 14,974 | $ | 30,301 | $ | 9,951 | $ | 71,356 | |||||||
U.K. | 3,978 | 7,683 | 20,168 | 11,083 | 42,912 | ||||||||||||
Cayman Islands | 14 | — | 28,164 | 5,342 | 33,520 | ||||||||||||
France | 3,750 | 1,420 | 17,343 | 6,584 | 29,097 | ||||||||||||
Canada | 6,808 | 2,153 | 2,005 | 2,455 | 13,421 | ||||||||||||
Ireland | 664 | 24 | 8,466 | 4,191 | 13,345 | ||||||||||||
European Central
Bank | — | 12,008 | — | — | 12,008 | ||||||||||||
Brazil | 2,464 | 5,074 | 579 | 2,133 | 10,250 | ||||||||||||
Germany | 822 | 1,499 | 4,137 | 3,022 | 9,480 | ||||||||||||
Luxembourg | 101 | 291 | 7,139 | 1,289 | 8,820 |
153 | December 2020 Form 10-K |
Financial Data Supplement (Unaudited) |
$ in millions | Cross-Border Exposure1 | ||||
At December 31, 2020 | |||||
European
Central Bank, Australia, Luxembourg, Republic of Korea, and Netherlands | $ | 50,420 | |||
At December 31, 2019 | |||||
Switzerland, Republic of Korea and Taiwan | $ | 21,947 | |||
At December 31, 2018 | |||||
Netherlands | $ | 7,338 |
December 2020 Form 10-K | 154 |
Glossary of Common Terms and Acronyms |
ABS | Asset-backed securities | ||||
ACL | Allowance for credit losses | ||||
AFS | Available-for-sale | ||||
AML | Anti-money laundering | ||||
AOCI | Accumulated other comprehensive income (loss) | ||||
AUM | Assets under management or supervision | ||||
Balance sheets | Consolidated balance sheets | ||||
BHC | Bank holding company | ||||
bps | Basis points; one basis point equals 1/100th of 1% | ||||
Cash flow statements | Consolidated cash flow statements | ||||
CCAR | Comprehensive Capital Analysis and Review | ||||
CCyB | Countercyclical capital buffer | ||||
CDO | Collateralized debt obligation(s), including Collateralized loan obligation(s) | ||||
CDS | Credit default swaps | ||||
CECL | Current Expected Credit Losses, as calculated under the Financial Instruments—Credit Losses accounting update | ||||
CFTC | U.S. Commodity Futures Trading Commission | ||||
CLN | Credit-linked note(s) | ||||
CLO | Collateralized loan obligation(s) | ||||
CMBS | Commercial mortgage-backed securities | ||||
CMO | Collateralized mortgage obligation(s) | ||||
CVA | Credit valuation adjustment | ||||
DVA | Debt valuation adjustment | ||||
EBITDA | Earnings before interest, taxes, depreciation and amortization | ||||
ELN | Equity-linked note(s) | ||||
EMEA | Europe, Middle East and Africa | ||||
EPS | Earnings per common share | ||||
E.U. | European Union | ||||
FDIC | Federal Deposit Insurance Corporation | ||||
FFELP | Federal Family Education Loan Program | ||||
FFIEC | Federal Financial Institutions Examination Council | ||||
FHC | Financial Holding Company | ||||
FICC | Fixed Income Clearing Corporation | ||||
FICO | Fair Isaac Corporation | ||||
Financial statements | Consolidated financial statements | ||||
FVA | Funding valuation adjustment | ||||
G-SIB | Global systemically important banks | ||||
HELOC | Home Equity Line of Credit | ||||
HQLA | High-quality liquid assets | ||||
HTM | Held-to-maturity | ||||
I/E | Intersegment eliminations | ||||
IHC | Intermediate holding company | ||||
IM | Investment Management | ||||
Income statements | Consolidated income statements | ||||
IRS | Internal Revenue Service | ||||
IS | Institutional Securities | ||||
LCR | Liquidity coverage ratio, as adopted by the U.S. banking agencies | ||||
LIBOR | London Interbank Offered Rate | ||||
LTV | Loan-to-value | ||||
M&A | Merger, acquisition and restructuring transaction | ||||
MSBNA | Morgan Stanley Bank, N.A. | ||||
MS&Co. | Morgan Stanley & Co. LLC | ||||
MSIP | Morgan Stanley & Co. International plc | ||||
MSMS | Morgan Stanley MUFG Securities Co., Ltd. | ||||
MSPBNA | Morgan Stanley Private Bank, National Association | ||||
MSSB | Morgan Stanley Smith Barney LLC | ||||
MUFG | Mitsubishi UFJ Financial Group, Inc. | ||||
MUMSS | Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. | ||||
155 | December 2020 Form 10-K |
Glossary of Common Terms and Acronyms |
MWh | Megawatt hour | ||||
N/A | Not Applicable | ||||
N/M | Not Meaningful | ||||
NAV | Net asset value | ||||
Non-GAAP | Non-generally accepted accounting principles | ||||
NSFR | Net stable funding ratio, as adopted by the U.S. banking agencies | ||||
OCC | Office of the Comptroller of the Currency | ||||
OCI | Other comprehensive income (loss) | ||||
OIS | Overnight index swap | ||||
OTC | Over-the-counter | ||||
PRA | Prudential Regulation Authority | ||||
PSU | Performance-based stock unit | ||||
RMBS | Residential mortgage-backed securities | ||||
ROE | Return on average common equity | ||||
ROTCE | Return on average tangible common equity | ||||
ROU | Right-of-use | ||||
RSU | Restricted stock unit | ||||
RWA | Risk-weighted assets | ||||
SEC | U.S. Securities and Exchange Commission | ||||
SLR | Supplementary leverage ratio | ||||
SOFR | Secured Overnight Financing Rate | ||||
S&P | Standard & Poor’s | ||||
SPE | Special purpose entity | ||||
SPOE | Single point of entry | ||||
TDR | Troubled debt restructuring | ||||
TLAC | Total loss-absorbing capacity | ||||
U.K. | United Kingdom | ||||
UPB | Unpaid principal balance | ||||
U.S. | United States of America | ||||
U.S. GAAP | Accounting principles generally accepted in the United States of America | ||||
VaR | Value-at-Risk | ||||
VIE | Variable interest entity | ||||
WACC | Implied weighted average cost of capital | ||||
WM | Wealth Management | ||||
December 2020 Form 10-K | 156 |
157 | December 2020 Form 10-K |
December 2020 Form 10-K | 158 |
159 | December 2020 Form 10-K |
December 2020 Form 10-K | 160 |
161 | December 2020 Form 10-K |
December 2020 Form 10-K | 162 |
$ in millions, except per share data | Total Number of Shares Purchased1 | Average Price Paid per Share | Total Shares Purchased as Part of Share Repurchase Program2, 3 | Dollar Value of Remaining Authorized Repurchase | ||||||||||
October | 903,959 | $ | 47.34 | — | $ | — | ||||||||
November | 9,868 | $ | 48.27 | — | $ | — | ||||||||
December | 101,944 | $ | 61.87 | — | $ | — | ||||||||
Total | 1,015,771 | $ | 48.81 | — |
At December 31, | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||
Morgan Stanley | $ | 100.00 | $ | 136.06 | $ | 172.28 | $ | 133.06 | $ | 176.51 | $ | 243.68 | ||||||||
S&P
500 Stock Index | 100.00 | 111.95 | 136.38 | 130.39 | 171.09 | 202.55 | ||||||||||||||
S&P 500 Financials Sector Index | 100.00 | 122.75 | 148.70 | 129.31 | 170.80 | 167.80 |
163 | December 2020 Form 10-K |
Exhibit No. | Description | |||||||
3.1 | ||||||||
3.2 | Amended and Restated Bylaws of Morgan Stanley, as amended to date (Exhibit 3.1 to Morgan Stanley’s current report on Form 8-K dated October 29, 2015). | |||||||
4.1* | ||||||||
4.2 | Amended and Restated Senior Indenture dated as of May 1, 1999 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4-e to Morgan Stanley’s Registration Statement on Form S-3/A (No. 333-75289)
as amended by Fourth Supplemental Senior Indenture dated as of October 8, 2007 (Exhibit 4.3 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007). |
December 2020 Form 10-K | 164 |
Exhibit No. | Description | |||||||
4.3 | Senior
Indenture dated as of November 1, 2004 between Morgan Stanley and The Bank of New York, as trustee (Exhibit 4-f to Morgan Stanley’s Registration Statement on Form S-3/A (No. 333-117752), as amended by First Supplemental Senior Indenture dated as of September 4, 2007 (Exhibit
4.5 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007), Second Supplemental Senior Indenture dated as of January 4, 2008 (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated January 4, 2008), Third Supplemental Senior Indenture dated as of September 10, 2008 (Exhibit
4 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended August 31, 2008), Fourth Supplemental Senior Indenture dated as of December 1, 2008 (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated December 1, 2008), Fifth Supplemental Senior Indenture dated as of April 1, 2009 (Exhibit
4 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2009), Sixth Supplemental Senior Indenture dated as of September 16, 2011 (Exhibit 4.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2011), Seventh Supplemental Senior Indenture dated as of November 21, 2011 (Exhibit
4.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2011), Eighth Supplemental Senior Indenture dated as of May 4, 2012 (Exhibit 4.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2012), Ninth Supplemental Senior Indenture dated as of March 10, 2014 (Exhibit
4.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2014) and Tenth Supplemental Senior Indenture dated as of January 11, 2017 (Exhibit 4.1 to Morgan Stanley’s current report on Form 8-K dated January 11, 2017). | |||||||
4.4 | ||||||||
4.5 | ||||||||
4.6 | ||||||||
4.7 |
Exhibit No. | Description | |||||||
4.8 | ||||||||
4.9 | ||||||||
4.10 | ||||||||
4.11 | ||||||||
4.12 | ||||||||
4.13 | ||||||||
4.14 | ||||||||
4.15 | ||||||||
4.16 | ||||||||
4.17 | ||||||||
4.18 |
165 | December 2020 Form 10-K |
Exhibit No. | Description | |||||||
4.19 | ||||||||
4.20 | ||||||||
4.21 | ||||||||
4.22 | ||||||||
4.23 | ||||||||
4.24 | ||||||||
4.25 | ||||||||
10.1 | ||||||||
10.2 | Amended and Restated Investor Agreement dated as of June 30, 2011 by and between Morgan Stanley and Mitsubishi UFJ Financial Group, Inc. (Exhibit 10.1 to Morgan Stanley’s current report on Form 8-K dated June 30, 2011), as amended by Third Amendment, dated October 3,
2013 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2013) and Fourth Amendment, dated April 6, 2016 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2016). | |||||||
10.3* | ||||||||
10.4 | Agreement and Plan of Merger, dated as of October 7, 2020, by and among Morgan Stanley, Mirror Merger Sub 1, Inc., Mirror Merger Sub 2, LLC and Eaton Vance Corp. (Exhibit 2.1 to Morgan Stanley’s current report on Form 8-K dated October 8, 2020). |
Exhibit No. | Description | |||||||
10.5† | Morgan
Stanley 401(k) Plan, amended and restated as of January 1, 2013 (Exhibit 10.6 to Morgan Stanley annual report on Form 10-K for the year ended December 31, 2012), as amended by Amendment (Exhibit 10.5 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2013), Amendment (Exhibit 10.6
to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2013), Amendment (Exhibit 10.5 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2014), Amendment (Exhibit 10.5 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2015), Amendment (Exhibit
10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2016), Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2017), Amendment (Exhibit 10.5 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2017), Amendment (Exhibit
10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2018) and Amendment (Exhibit 10.4 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2019). | |||||||
10.6†* | ||||||||
10.7† | Tax
Deferred Equity Participation Plan as amended and restated as of November 26, 2007 (Exhibit 10.9 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007). | |||||||
10.8† | Directors’ Equity Capital Accumulation Plan as amended and restated as of November 1, 2018 (Exhibit 10.6
to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended December 31, 2018). | |||||||
10.9† | Employees’ Equity Accumulation Plan as amended and restated as of November 26, 2007 (Exhibit 10.12 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007). | |||||||
10.10† | Employee Stock Purchase
Plan as amended and restated as of February 1, 2009 (Exhibit 10.20 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2008). |
December 2020 Form 10-K | 166 |
Exhibit No. | Description | |||||||
10.11† | Morgan
Stanley Supplemental Executive Retirement and Excess Plan, amended and restated effective December 31, 2008 (Exhibit 10.2 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2009) as amended by Amendment (Exhibit 10.5 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2009), Amendment (Exhibit
10.19 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2010), Amendment (Exhibit 10.3 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2011) and Amendment (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2014). | |||||||
10.12† | 1995
Equity Incentive Compensation Plan (Annex A to MSG’s proxy statement for its 1996 Annual Meeting of Stockholders) as amended by Amendment (Exhibit 10.39 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2000), Amendment (Exhibit 10.5 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended August 31, 2005), Amendment (Exhibit
10.3 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended February 28, 2006), Amendment (Exhibit 10.24 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2006) and Amendment (Exhibit 10.22 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2007). | |||||||
10.13† | Form
of Deferred Compensation Agreement under the Pre-Tax Incentive Program 2 (Exhibit 10.12 to MSG’s annual report for the fiscal year ended November 30, 1996). | |||||||
10.14† | Morgan Stanley UK Share Ownership Plan (Exhibit 4.1 to Morgan Stanley’s Registration Statement on Form S-8 (No. 333-146954)). | |||||||
10.15† | Supplementary
Deed of Participation for the Morgan Stanley UK Share Ownership Plan, dated as of November 5, 2009 (Exhibit 10.36 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2009). | |||||||
10.16† | Aircraft Time Sharing Agreement, dated as of January 1, 2010, by and between Corporate Services Support Corp. and James P. Gorman (Exhibit
10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2010). | |||||||
10.17† | Agreement between Morgan Stanley and James P. Gorman, dated August 16, 2005, and amendment dated December 17, 2008 (Exhibit 10.2 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2010), as amended
by Amendment (Exhibit 10.25 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2013). | |||||||
10.18† | Form of Restrictive Covenant Agreement (Exhibit 10 to Morgan Stanley’s current report on Form 8-K dated November 22, 2005). | |||||||
10.19†* |
Exhibit No. | Description | |||||||
10.20† | Morgan Stanley 2006 Notional Leveraged Co-Investment Plan, as amended and restated as of November 28, 2008 (Exhibit
10.47 to Morgan Stanley’s annual report on Form 10-K for the fiscal year ended November 30, 2008). | |||||||
10.21† | Form of Award Certificate under the 2006 Notional Leveraged Co-Investment Plan (Exhibit 10.7 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended February 29, 2008). | |||||||
10.22† | Morgan Stanley 2007 Notional Leveraged Co-Investment
Plan, amended as of June 4, 2009 (Exhibit 10.6 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended June 30, 2009). | |||||||
10.23† | Form of Award Certificate under the 2007 Notional Leveraged Co-Investment Plan for Certain Management Committee Members (Exhibit 10.8 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended February 29,
2008). | |||||||
10.24†* | ||||||||
10.25† | Morgan Stanley Schedule of Non-Employee Directors Annual Compensation, effective as of November 1, 2018 (Exhibit 10.24 to Morgan Stanley’s annual report on Form 10-K for the fiscal
year ended December 31, 2018). | |||||||
10.26† | Morgan Stanley UK Limited Alternative Retirement Plan, dated as of October 8, 2009 (Exhibit 10.2 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2013). | |||||||
10.27† | Agreement between Morgan Stanley and Colm Kelleher, dated January 5,
2015 (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2015). | |||||||
10.28† | Description of Operating Committee Medical Coverage (Exhibit 10.2 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended March 31, 2015). | |||||||
10.29† | Form
of Award Certificate for Discretionary Retention Awards of Stock Units. (Exhibit 10.33 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31, 2017). | |||||||
10.30† | Form of Award Certificate for Discretionary Retention Awards under the Morgan Stanley Compensation Incentive Plan. (Exhibit 10.34 to Morgan Stanley’s annual report on Form 10-K for the year ended December 31,
2017). | |||||||
10.31†* | ||||||||
10.32† | Form of Aircraft Time-Sharing Agreement (Exhibit 10.1 to Morgan Stanley’s quarterly report on Form 10-Q for the quarter ended September 30, 2020). | |||||||
21* | ||||||||
22* | ||||||||
23.1* | ||||||||
24 | ||||||||
31.1* | ||||||||
31.2* |
167 | December 2020 Form 10-K |
Exhibit No. | Description | |||||||
32.1** | ||||||||
32.2** | ||||||||
101 | Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline eXtensible Business Reporting Language (“Inline XBRL”). | |||||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). |
* | Filed herewith. | ||||
** | Furnished herewith. | ||||
† | Management contract or compensatory plan or arrangement required to be filed as an exhibit to this Form 10-K pursuant to Item 15(b). |
MORGAN STANLEY (REGISTRANT) | |||||
By: | /s/ JAMES P. GORMAN | ||||
(James P. Gorman) | |||||
Chairman of the Board and Chief Executive Officer |
Signature | Title | ||||
/s/ JAMES P. GORMAN | Chairman of the Board and Chief Executive Officer | ||||
(James P. Gorman) | (Principal Executive Officer) | ||||
/s/ JONATHAN PRUZAN | Executive Vice President and Chief Financial Officer | ||||
(Jonathan Pruzan) | (Principal Financial Officer) | ||||
/s/ RAJA J. AKRAM | Deputy Chief Financial Officer | ||||
(Raja J. Akram) | (Chief Accounting Officer and Controller) | ||||
/s/ ELIZABETH CORLEY | Director | ||||
(Elizabeth Corley) | |||||
/s/ ALISTAIR DARLING | Director | ||||
(Alistair Darling) | |||||
/s/ THOMAS H. GLOCER | Director | ||||
(Thomas H. Glocer) | |||||
/s/ ROBERT H. HERZ | Director | ||||
(Robert H. Herz) | |||||
/s/ NOBUYUKI HIRANO | Director | ||||
(Nobuyuki Hirano) | |||||
/s/ SHELLEY B. LEIBOWITZ | Director | ||||
(Shelley B. Leibowitz) | |||||
/s/ STEPHEN J. LUCZO | Director | ||||
(Stephen J. Luczo) | |||||
/s/ JAMI MISCIK | Director | ||||
(Jami Miscik) | |||||
/s/ DENNIS M. NALLY | Director | ||||
(Dennis M. Nally) | |||||
/s/ TAKESHI OGASAWARA | Director | ||||
(Takeshi Ogasawara) | |||||
December 2020 Form 10-K | 168 |
Signature | Title | ||||
/s/ HUTHAM S. OLAYAN | Director | ||||
(Hutham S. Olayan) | |||||
/s/ MARY L. SCHAPIRO | Director | ||||
(Mary L. Schapiro) | |||||
/s/ PERRY M. TRAQUINA | Director | ||||
(Perry M. Traquina) | |||||
/s/ RAYFORD WILKINS, JR. | Director | ||||
(Rayford Wilkins, Jr.) |
December 2020 Form 10-K | 169 |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 2/22/24 Morgan Stanley 10-K 12/31/23 224:45M 2/24/23 Morgan Stanley 10-K 12/31/22 227:50M 8/05/22 Morgan Stanley S-8 8/05/22 6:90K Shearman & Sterling LLP 2/24/22 Morgan Stanley 10-K 12/31/21 225:51M 7/09/21 Mitsubishi Ufj Fin’l Group Inc. 20-F 3/31/21 214:63M Donnelley … Solutions/FA |