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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer Identification No.)
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(Registrant’s telephone number, including area code)
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(Address of principal executive offices, including zip code)
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading
Symbol(s)
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Name of exchange on
which registered
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Depositary Shares, each representing 1/1,000th interest in a share of Floating Rate
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Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate
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Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate
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Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate
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Depositary Shares, each representing 1/1,000th interest in a share of Fixed-to-Floating Rate
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Depository Shares, each representing 1/1000th interest in a share of 4.875%
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of Morgan Stanley Finance LLC (and Registrant’s guarantee with respect thereto)
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☒ |
Accelerated filer
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☐ |
Non-accelerated filer
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☐ |
Smaller reporting company
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Emerging growth company
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Table of Contents
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II
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II
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II
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1A | |||||||||||||
II
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I
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6 | |||||||||||||
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i
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ii
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June 2021 Form 10-Q |
1
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Management’s Discussion and Analysis |
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2
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June 2021 Form 10-Q |
Management’s Discussion and Analysis |
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June 2021 Form 10-Q |
3
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Management’s Discussion and Analysis |
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4
|
June 2021 Form 10-Q |
Management’s Discussion and Analysis |
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||
$ in millions
|
2021 | 2020 | 2021 | 2020 | ||||||||||
Consolidated results | ||||||||||||||
Net revenues
1
|
$ | 14,759 | $ | 13,660 | $ | 30,478 | $ | 23,439 | ||||||
Earnings applicable to Morgan Stanley common shareholders | $ | 3,408 | $ | 3,047 | $ | 7,390 | $ | 4,637 | ||||||
Earnings per diluted common share | $ | 1.85 | $ | 1.96 | $ | 4.04 | $ | 2.96 | ||||||
Consolidated financial measures | ||||||||||||||
Expense efficiency ratio
1, 2
|
69 | % | 66 | % | 68 | % | 70 | % | ||||||
Adjusted expense efficiency ratio
1,2,4
|
68 | % | 66 | % | 67 | % | 70 | % | ||||||
ROE
3
|
13.8 | % | 15.7 | % | 15.3 | % | 12.2 | % | ||||||
Adjusted ROE
3, 4
|
14.1 | % | 15.7 | % | 15.6 | % | 12.2 | % | ||||||
ROTCE
3, 4
|
18.6 | % | 17.8 | % | 19.8 | % | 13.9 | % | ||||||
Adjusted ROTCE
3, 4
|
19.0 | % | 17.8 | % | 20.1 | % | 13.9 | % | ||||||
Pre-tax margin
1, 5
|
31 | % | 32 | % | 33 | % | 28 | % | ||||||
Effective tax rate | 23.1 | % | 25.7 | % | 22.5 | % | 22.8 | % | ||||||
Pre-tax margin by segment
5
|
||||||||||||||
Institutional Securities
1
|
35 | % | 37 | % | 37 | % | 29 | % | ||||||
Wealth Management
1
|
27 | % | 24 | % | 27 | % | 25 | % | ||||||
Wealth Management, adjusted
1, 4
|
28 | % | 24 | % | 28 | % | 25 | % | ||||||
Investment Management | 25 | % | 24 | % | 27 | % | 23 | % | ||||||
Investment Management, adjusted
4
|
27 | % | 24 | % | 28 | % | 23 | % |
in millions, except per share and employee data
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Liquidity resources
6
|
$ | 343,776 | $ | 338,623 | ||||
Loans
7
|
$ | 166,059 | $ | 150,597 | ||||
Total assets | $ | 1,161,805 | $ | 1,115,862 | ||||
Deposits | $ | 320,358 | $ | 310,782 | ||||
Borrowings | $ | 224,142 | $ | 217,079 | ||||
Common shares outstanding | 1,834 | 1,810 | ||||||
Common shareholders' equity | $ | 99,120 | $ | 92,531 | ||||
Tangible common shareholders’ equity
4
|
$ | 73,593 | $ | 75,916 | ||||
Book value per common share
8
|
$ | 54.04 | $ | 51.13 | ||||
Tangible book value per common share
4, 8
|
$ | 40.12 | $ | 41.95 | ||||
Worldwide employees
9
(in thousands)
|
72 | 68 | ||||||
Capital Ratios
10
|
||||||||
Common Equity Tier 1 capital—Standardized | 16.6 | % | 17.4 | % | ||||
Tier 1 capital—Standardized | 18.3 | % | 19.4 | % | ||||
Common Equity Tier 1 capital—Advanced | 17.7 | % | 17.7 | % | ||||
Tier 1 capital—Advanced | 19.5 | % | 19.8 | % | ||||
Tier 1 leverage | 7.5 | % | 8.4 | % | ||||
SLR
11
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5.9 | % | 7.4 | % |
June 2021 Form 10-Q |
5
|
Management’s Discussion and Analysis |
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
$ in millions, except per share data | 2021 | 2020 | 2021 | 2020 | ||||||||||
Earnings applicable to Morgan Stanley common shareholders | $ | 3,408 | $ | 3,047 | $ | 7,390 | $ | 4,637 | ||||||
Impact of adjustments: | ||||||||||||||
Integration-related expenses | 90 | — | 165 | — | ||||||||||
Related tax benefit | (21) | — | (38) | — | ||||||||||
Adjusted earnings applicable to
Morgan Stanley common shareholders—non-GAAP
1
|
$ | 3,477 | $ | 3,047 | $ | 7,517 | $ | 4,637 | ||||||
Earnings per diluted common share | $ | 1.85 | $ | 1.96 | $ | 4.04 | $ | 2.96 | ||||||
Impact of adjustments | 0.04 | — | 0.07 | — | ||||||||||
Adjusted earnings per diluted common share—non-GAAP
1
|
$ | 1.89 | $ | 1.96 | $ | 4.11 | $ | 2.96 | ||||||
Expense efficiency ratio
2
|
69 | % | 66 | % | 68 | % | 70 | % | ||||||
Impact of adjustments | (1) | % | — | % | (1) | % | — | % | ||||||
Adjusted expense efficiency ratio—non-GAAP
1, 2
|
68 | % | 66 | % | 67 | % | 70 | % | ||||||
Wealth Management Pre-tax margin
2
|
27 | % | 24 | % | 27 | % | 25 | % | ||||||
Impact of adjustments | 1 | % | — | % | 1 | % | — | % | ||||||
Adjusted Wealth Management pre-tax margin—non-GAAP
1, 2
|
28 | % | 24 | % | 28 | % | 25 | % | ||||||
Investment Management Pre-tax margin | 25 | % | 24 | % | 27 | % | 23 | % | ||||||
Impact of adjustments | 2 | % | — | % | 1 | % | — | % | ||||||
Adjusted Investment Management pre-tax margin—non-GAAP
1
|
27 | % | 24 | % | 28 | % | 23 | % |
$ in millions |
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Tangible equity | ||||||||
Common shareholders' equity | $ | 99,120 | $ | 92,531 | ||||
Less: Goodwill and net intangible assets | (25,527) | (16,615) | ||||||
Tangible common shareholders' equity—non-GAAP | $ | 73,593 | $ | 75,916 |
Average Monthly Balance | ||||||||||||||
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Tangible equity | ||||||||||||||
Common shareholders' equity | $ | 98,824 | $ | 77,598 | $ | 96,309 | $ | 75,992 | ||||||
Less: Goodwill and net intangible assets | (25,611) | (9,268) | (21,738) | (9,246) | ||||||||||
Tangible common shareholders' equity—non-GAAP | $ | 73,213 | $ | 68,330 | $ | 74,571 | $ | 66,746 |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
$ in billions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Average common equity | ||||||||||||||
Unadjusted—GAAP | $ | 98.8 | $ | 77.6 | $ | 96.3 | $ | 76.0 | ||||||
Adjusted
1
—Non-GAAP
|
98.8 | 77.6 | 96.4 | 76.0 | ||||||||||
ROE
3
|
||||||||||||||
Unadjusted—GAAP | 13.8 | % | 15.7 | % | 15.3 | % | 12.2 | % | ||||||
Adjusted
1
—Non-GAAP
|
14.1 | % | 15.7 | % | 15.6 | % | 12.2 | % | ||||||
Average tangible common equity—Non-GAAP | ||||||||||||||
Unadjusted | $ | 73.2 | $ | 68.3 | $ | 74.6 | $ | 66.7 | ||||||
Adjusted
1
|
73.2 | 68.3 | 74.6 | 66.7 | ||||||||||
ROTCE
3
—Non-GAAP
|
||||||||||||||
Unadjusted | 18.6 | % | 17.8 | % | 19.8 | % | 13.9 | % | ||||||
Adjusted
1
|
19.0 | % | 17.8 | % | 20.1 | % | 13.9 | % |
6
|
June 2021 Form 10-Q |
Management’s Discussion and Analysis |
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
$ in billions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Average common equity
4
|
||||||||||||||
Institutional Securities | $ | 43.5 | $ | 42.8 | $ | 43.5 | $ | 42.8 | ||||||
Wealth Management | 28.6 | 18.2 | 28.6 | 18.2 | ||||||||||
Investment Management | 10.7 | 2.6 | 7.1 | 2.6 | ||||||||||
ROE
5
|
||||||||||||||
Institutional Securities | 17 | % | 19 | % | 20 | % | 13 | % | ||||||
Wealth Management | 17 | % | 18 | % | 17 | % | 18 | % | ||||||
Investment Management | 13 | % | 23 | % | 17 | % | 18 | % | ||||||
Average tangible common equity
4
|
||||||||||||||
Institutional Securities | $ | 42.9 | $ | 42.3 | $ | 42.9 | $ | 42.3 | ||||||
Wealth Management | 13.4 | 10.4 | 13.4 | 10.4 | ||||||||||
Investment Management | 1.0 | 1.7 | 1.0 | 1.7 | ||||||||||
ROTCE
5
|
||||||||||||||
Institutional Securities | 17 | % | 20 | % | 20 | % | 13 | % | ||||||
Wealth Management | 37 | % | 32 | % | 36 | % | 32 | % | ||||||
Investment Management | 172 | % | 36 | % | 117 | % | 27 | % |
June 2021 Form 10-Q |
7
|
Management’s Discussion and Analysis |
|
|
Three Months Ended
June 30, |
|
|||||||||
$ in millions | 2021 | 2020 | % Change | ||||||||
Revenues | |||||||||||
Advisory | $ | 664 | $ | 462 | 44 | % | |||||
Equity | 1,072 | 882 | 22 | % | |||||||
Fixed income | 640 | 707 | (9) | % | |||||||
Total Underwriting | 1,712 | 1,589 | 8 | % | |||||||
Total Investment banking | 2,376 | 2,051 | 16 | % | |||||||
Equity
1
|
2,827 | 2,627 | 8 | % | |||||||
Fixed income
1
|
1,682 | 3,041 | (45) | % | |||||||
Other
1
|
207 | 480 | (57) | % | |||||||
Net revenues | $ | 7,092 | $ | 8,199 | (14) | % | |||||
Provision for credit losses
1
|
70 | 217 | (68) | % | |||||||
Compensation and benefits | 2,433 | 2,952 | (18) | % | |||||||
Non-compensation expenses
1
|
2,091 | 2,037 | 3 | % | |||||||
Total non-interest expenses
1
|
4,524 | 4,989 | (9) | % | |||||||
Income before provision for income taxes | 2,498 | 2,993 | (17) | % | |||||||
Provision for income taxes | 574 | 790 | (27) | % | |||||||
Net income | 1,924 | 2,203 | (13) | % | |||||||
Net income applicable to noncontrolling interests | 20 | 17 | 18 | % | |||||||
Net income applicable to Morgan Stanley | $ | 1,904 | $ | 2,186 | (13) | % |
Six Months Ended
June 30, |
|||||||||||
$ in millions
|
2021 | 2020 |
% Change
|
||||||||
Revenues
|
|||||||||||
Advisory | $ | 1,144 | $ | 824 | 39 | % | |||||
Equity | 2,574 | 1,218 | 111 | % | |||||||
Fixed income | 1,271 | 1,153 | 10 | % | |||||||
Total Underwriting | 3,845 | 2,371 | 62 | % | |||||||
Total Investment banking | 4,989 | 3,195 | 56 | % | |||||||
Equity
1
|
5,702 | 5,076 | 12 | % | |||||||
Fixed income
1
|
4,648 | 5,103 | (9) | % | |||||||
Other
1
|
330 | 3 | N/M | ||||||||
Net revenues
1
|
$ | 15,669 | $ | 13,377 | 17 | % | |||||
Provision for credit losses
1
|
(23) | 605 | (104) | % | |||||||
Compensation and benefits
|
5,547 | 4,766 | 16 | % | |||||||
Non-compensation expenses
1
|
4,276 | 4,063 | 5 | % | |||||||
Total non-interest expenses
1
|
9,823 | 8,829 | 11 | % | |||||||
Income before provision for income taxes | 5,869 | 3,943 | 49 | % | |||||||
Provision for income taxes | 1,310 | 941 | 39 | % | |||||||
Net income | 4,559 | 3,002 | 52 | % | |||||||
Net income applicable to noncontrolling interests | 54 | 59 | (8) | % | |||||||
Net income applicable to Morgan Stanley | $ | 4,505 | $ | 2,943 | 53 | % |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
$ in billions
|
2021 | 2020 | 2021 | 2020 | ||||||||||
Completed mergers and acquisitions
1
|
$ | 141 | $ | 433 | $ | 370 | $ | 552 | ||||||
Equity and equity-related offerings
2, 3
|
31 | 36 | 68 | 49 | ||||||||||
Fixed income offerings
2, 4
|
100 | 121 | 204 | 214 |
8
|
June 2021 Form 10-Q |
Management’s Discussion and Analysis |
|
Three Months Ended
June 30, 2021 |
|||||||||||||||||
Net Interest
2
|
All Other
3
|
||||||||||||||||
$ in millions | Trading |
Fees
1
|
Total | ||||||||||||||
Financing | $ | 1,138 | $ | 121 | $ | 117 | $ | 3 | $ | 1,379 | |||||||
Execution services | 818 | 636 | (45) | 39 | 1,448 | ||||||||||||
Total Equity | $ | 1,956 | $ | 757 | $ | 72 | $ | 42 | $ | 2,827 | |||||||
Total Fixed Income | $ | 1,148 | $ | 72 | $ | 417 | $ | 45 | $ | 1,682 |
Three Months Ended
June 30, 2020
4
|
|||||||||||||||||
Net Interest
2
|
All Other
3
|
||||||||||||||||
$ in millions | Trading |
Fees
1
|
Total | ||||||||||||||
Financing | $ | 884 | $ | 115 | $ | 94 | $ | 1 | $ | 1,094 | |||||||
Execution services | 948 | 651 | (73) | 7 | 1,533 | ||||||||||||
Total Equity | $ | 1,832 | $ | 766 | $ | 21 | $ | 8 | $ | 2,627 | |||||||
Total Fixed Income | $ | 2,468 | $ | 67 | $ | 504 | $ | 2 | $ | 3,041 |
Six Months Ended
June 30, 2021 |
|||||||||||||||||
Net Interest
2
|
All Other
3
|
||||||||||||||||
$ in millions | Trading |
Fees
1
|
Total | ||||||||||||||
Financing | $ | 1,783 | $ | 251 | $ | 299 | $ | 6 | $ | 2,339 | |||||||
Execution services | 1,932 | 1,436 | (107) | 102 | 3,363 | ||||||||||||
Total Equity | $ | 3,715 | $ | 1,687 | $ | 192 | $ | 108 | $ | 5,702 | |||||||
Total Fixed Income | $ | 3,461 | $ | 153 | $ | 856 | $ | 178 | $ | 4,648 |
Six Months Ended
June 30, 2020
4
|
|||||||||||||||||
Net Interest
2
|
All Other
3
|
||||||||||||||||
$ in millions | Trading |
Fees
1
|
Total | ||||||||||||||
Financing | $ | 1,919 | $ | 217 | $ | 57 | $ | 4 | $ | 2,197 | |||||||
Execution services | 1,527 | 1,434 | (113) | 31 | 2,879 | ||||||||||||
Total Equity | $ | 3,446 | $ | 1,651 | $ | (56) | $ | 35 | $ | 5,076 | |||||||
Total Fixed Income | $ | 4,241 | $ | 169 | $ | 832 | $ | (139) | $ | 5,103 |
June 2021 Form 10-Q |
9
|
Management’s Discussion and Analysis |
|
10
|
June 2021 Form 10-Q |
Management’s Discussion and Analysis |
|
Three Months Ended
June 30, |
|||||||||||
$ in millions | 2021 | 2020 | % Change | ||||||||
Revenues | |||||||||||
Asset management | $ | 3,447 | $ | 2,507 | 37 | % | |||||
Transactional
1
|
1,172 | 1,075 | 9 | % | |||||||
Net interest | 1,255 | 1,030 | 22 | % | |||||||
Other
1,2
|
221 | 92 | 140 | % | |||||||
Net revenues | 6,095 | 4,704 | 30 | % | |||||||
Provision for credit losses
2
|
3 | 22 | (86) | % | |||||||
Compensation and benefits | 3,275 | 2,729 | 20 | % | |||||||
Non-compensation expenses | 1,181 | 811 | 46 | % | |||||||
Total non-interest expenses | 4,456 | 3,540 | 26 | % | |||||||
Income before provision for
income taxes
|
$ | 1,636 | $ | 1,142 | 43 | % | |||||
Provision for income taxes | 372 | 289 | 29 | % | |||||||
Net income applicable to
Morgan Stanley
|
$ | 1,264 | $ | 853 | 48 | % |
Six Months Ended
June 30, |
|||||||||||
$ in millions | 2021 | 2020 | % Change | ||||||||
Revenues | |||||||||||
Asset management | $ | 6,638 | $ | 5,187 | 28 | % | |||||
Transactional
1
|
2,400 | 1,474 | 63 | % | |||||||
Net interest | 2,640 | 1,926 | 37 | % | |||||||
Other
1,2
|
376 | 173 | 117 | % | |||||||
Net revenues | 12,054 | 8,760 | 38 | % | |||||||
Provision for credit losses
2
|
(2) | 41 | (105) | % | |||||||
Compensation and benefits | 6,445 | 4,941 | 30 | % | |||||||
Non-compensation expenses | 2,375 | 1,581 | 50 | % | |||||||
Total non-interest expenses | 8,820 | 6,522 | 35 | % | |||||||
Income before provision for
income taxes
|
$ | 3,236 | $ | 2,197 | 47 | % | |||||
Provision for income taxes | 730 | 480 | 52 | % | |||||||
Net income applicable to
Morgan Stanley
|
$ | 2,506 | $ | 1,717 | 46 | % |
$ in billions |
At June 30,
2021 |
At December 31,
2020 |
||||||
Total client assets | $ | 4,546 | $ | 3,999 | ||||
U.S. Bank Subsidiary loans | $ | 115 | $ | 98 | ||||
Margin and other lending
1
|
$ | 27 | $ | 23 | ||||
Deposits
2
|
$ | 319 | $ | 306 | ||||
Weighted average cost of deposits
3
|
0.16% | 0.24% |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||
Net new assets
4
|
$ | 71.2 | $ | 20.4 | $ | 176.1 | $ | 57.5 | ||||||
$ in billions |
At June 30,
2021 |
At December 31,
2020 |
|||||||||
Advisor-led client assets
1
|
$ | 3,553 | $ | 3,167 | |||||||
Fee-based client assets
2
|
$ | 1,680 | $ | 1,472 | |||||||
Fee-based client assets as a
percentage of advisor-led client
assets
|
47% | 46% | |||||||||
Three Months Ended
June 30, |
Six Months Ended
June 30,
|
|||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||
Fee-based asset flows
3
|
$ | 33.7 | $ | 11.1 | $ | 70.9 | $ | 29.5 | ||||||
$ in billions |
At June 30,
2021 |
At December 31,
2020 |
|||||||||
Self-directed assets
1
|
$ | 993 | $ | 832 | |||||||
Self-directed households (in millions)
2
|
7.4 | 6.7 | |||||||||
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||
Daily average revenue trades (“DARTs”) (in thousands)
3
|
1,042 | 6 | 1,324 | 6 | ||||||||||
June 2021 Form 10-Q |
11
|
Management’s Discussion and Analysis |
|
$ in billions |
At June 30,
2021 |
At December 31,
2020 |
|||||||||
Workplace unvested assets
2
|
$ | 480 | $ | 435 | |||||||
Number of participants (in millions)
3
|
5.2 | 4.9 |
12
|
June 2021 Form 10-Q |
Management’s Discussion and Analysis |
|
$ in billions
|
At
March 31, 2021 |
Inflows
|
Outflows
|
Market
Impact
|
At
June 30, 2021 |
||||||||||||
Separately managed
1
|
$ | 385 | $ | 13 | $ | (4) | $ | 13 | $ | 407 | |||||||
Unified managed
|
405 | 25 | (14) | 20 | 436 | ||||||||||||
Advisor | 188 | 10 | (8) | 11 | 201 | ||||||||||||
Portfolio manager | 549 | 29 | (17) | 29 | 590 | ||||||||||||
Subtotal | $ | 1,527 | $ | 77 | $ | (43) | $ | 73 | $ | 1,634 | |||||||
Cash management | 47 | 8 | (9) | — | 46 | ||||||||||||
Total fee-based
client assets
|
$ | 1,574 | $ | 85 | $ | (52) | $ | 73 | $ | 1,680 |
$ in billions
|
At
March 31, 2020 |
Inflows
|
Outflows
|
Market
Impact
|
At
June 30, 2020 |
||||||||||||
Separately managed
1
|
$ | 329 | $ | 7 | $ | (4) | $ | (19) | $ | 313 | |||||||
Unified managed
|
263 | 13 | (10) | 39 | 305 | ||||||||||||
Advisor
|
131 | 8 | (8) | 18 | 149 | ||||||||||||
Portfolio manager
|
379 | 20 | (15) | 47 | 431 | ||||||||||||
Subtotal
|
$ | 1,102 | $ | 48 | $ | (37) | $ | 85 | $ | 1,198 | |||||||
Cash management | 32 | 10 | (4) | — | 38 | ||||||||||||
Total fee-based
client assets
|
$ | 1,134 | $ | 58 | $ | (41) | $ | 85 | $ | 1,236 |
$ in billions
|
At
December 31, 2020 |
Inflows
|
Outflows
|
Market
Impact
|
At
June 30, 2021 |
||||||||||||
Separately managed
1
|
$ | 359 | $ | 26 | $ | (11) | $ | 33 | $ | 407 | |||||||
Unified managed
|
379 | 51 | (27) | 33 | 436 | ||||||||||||
Advisor
|
177 | 22 | (17) | 19 | 201 | ||||||||||||
Portfolio manager
|
509 | 59 | (32) | 54 | 590 | ||||||||||||
Subtotal
|
$ | 1,424 | $ | 158 | $ | (87) | $ | 139 | $ | 1,634 | |||||||
Cash management | 48 | 15 | (17) | — | 46 | ||||||||||||
Total fee-based
client assets
|
$ | 1,472 | $ | 173 | $ | (104) | $ | 139 | $ | 1,680 |
$ in billions
|
At
December 31, 2019 |
Inflows
|
Outflows
|
Market
Impact
|
At
June 30, 2020 |
||||||||||||
Separately managed
1
|
$ | 322 | $ | 19 | $ | (10) | $ | (18) | $ | 313 | |||||||
Unified managed
|
313 | 29 | (22) | (15) | 305 | ||||||||||||
Advisor
|
155 | 16 | (15) | (7) | 149 | ||||||||||||
Portfolio manager
|
435 | 44 | (31) | (17) | 431 | ||||||||||||
Subtotal
|
$ | 1,225 | $ | 108 | $ | (78) | $ | (57) | $ | 1,198 | |||||||
Cash management | 42 | 9 | (13) | — | 38 | ||||||||||||
Total fee-based
client assets
|
$ | 1,267 | $ | 117 | $ | (91) | $ | (57) | $ | 1,236 |
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||
Fee rate in bps
|
2021 | 2020 | 2021 | 2020 | ||||||||||
Separately managed
|
14 | 14 | 14 | 14 | ||||||||||
Unified managed
|
95 | 99 | 96 | 99 | ||||||||||
Advisor | 82 | 86 | 82 | 85 | ||||||||||
Portfolio manager | 93 | 94 | 93 | 94 | ||||||||||
Subtotal | 72 | 72 | 73 | 72 | ||||||||||
Cash management | 5 | 6 | 5 | 5 | ||||||||||
Total fee-based client assets | 71 | 70 | 71 | 70 |
June 2021 Form 10-Q |
13
|
Management’s Discussion and Analysis |
|
Three Months Ended
June 30, |
|||||||||||
$ in millions | 2021 | 2020 | % Change | ||||||||
Revenues | |||||||||||
Asset management and related fees | $ | 1,418 | $ | 684 | 107 | % | |||||
Performance-based income and other
1
|
284 | 202 | 41 | % | |||||||
Net revenues | 1,702 | 886 | 92 | % | |||||||
Compensation and benefits | 715 | 354 | 102 | % | |||||||
Non-compensation expenses | 557 | 316 | 76 | % | |||||||
Total non-interest expenses | 1,272 | 670 | 90 | % | |||||||
Income before provision for income taxes | 430 | 216 | 99 | % | |||||||
Provision for income taxes | 108 | 39 | 177 | % | |||||||
Net income | 322 | 177 | 82 | % | |||||||
Net income (loss) applicable to noncontrolling interests | (19) | 23 | (183) | % | |||||||
Net income applicable to Morgan Stanley | $ | 341 | $ | 154 | 121 | % |
|
Six Months Ended
June 30, |
|
|||||||||
$ in millions | 2021 | 2020 |
% Change
|
||||||||
Revenues |
|
||||||||||
Asset management and related fees | $ | 2,521 | $ | 1,349 | 87 | % | |||||
Performance-based income and other
1
|
495 | 229 | 116 | % | |||||||
Net revenues
|
3,016 | 1,578 | 91 | % | |||||||
Compensation and benefits
|
1,229 | 611 | 101 | % | |||||||
Non-compensation expenses
|
987 | 608 | 62 | % | |||||||
Total non-interest expenses
|
2,216 | 1,219 | 82 | % | |||||||
Income before provision for income taxes | 800 | 359 | 123 | % | |||||||
Provision for income taxes
|
189 | 64 | 195 | % | |||||||
Net income
|
611 | 295 | 107 | % | |||||||
Net income (loss) applicable to noncontrolling interests | (5) | 63 | (108) | % | |||||||
Net income applicable to Morgan Stanley | $ | 616 | $ | 232 | 166 | % |
14
|
June 2021 Form 10-Q |
Management’s Discussion and Analysis |
|
$ in billions | Equity | Fixed income | Alternatives and Solutions | Long-term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||
March 31, 2021 | $ | 371 | $ | 201 | $ | 418 | $ | 990 | $ | 429 | $ | 1,419 | ||||||||
Inflows | 24 | 19 | 29 | 72 | 454 | 526 | ||||||||||||||
Outflows | (21) | (15) | (20) | (56) | (419) | (475) | ||||||||||||||
Market Impact | 31 | 3 | 19 | 53 | 4 | 57 | ||||||||||||||
Other | (1) | (1) | (1) | (3) | — | (3) | ||||||||||||||
June 30, 2021 | $ | 404 | $ | 207 | $ | 445 | $ | 1,056 | $ | 468 | $ | 1,524 |
$ in billions | Equity | Fixed income | Alternatives and Solutions | Long-term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||
March 31, 2020 | $ | 121 | $ | 75 | $ | 141 | $ | 337 | $ | 247 | $ | 584 | ||||||||
Inflows | 18 | 11 | 7 | 36 | 409 | 445 | ||||||||||||||
Outflows | (9) | (6) | (4) | (19) | (388) | (407) | ||||||||||||||
Market Impact | 37 | 4 | 2 | 43 | — | 43 | ||||||||||||||
Other | 1 | — | (1) | — | — | — | ||||||||||||||
June 30, 2020 | $ | 168 | $ | 84 | $ | 145 | $ | 397 | $ | 268 | $ | 665 |
$ in billions | Equity | Fixed income | Alternatives and Solutions | Long-term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||
December 31, 2020 | $ | 242 | $ | 98 | $ | 153 | $ | 493 | $ | 288 | $ | 781 | ||||||||
Inflows | 55 | 32 | 44 | 131 | 913 | 1,044 | ||||||||||||||
Outflows | (44) | (24) | (30) | (98) | (852) | (950) | ||||||||||||||
Market Impact | 35 | 1 | 29 | 65 | 4 | 69 | ||||||||||||||
Acquired
1
|
119 | 103 | 251 | 473 | 116 | 589 | ||||||||||||||
Other | (3) | (3) | (2) | (8) | (1) | (9) | ||||||||||||||
June 30, 2021 | $ | 404 | $ | 207 | $ | 445 | $ | 1,056 | $ | 468 | $ | 1,524 |
$ in billions | Equity | Fixed income | Alternatives and Solutions | Long-term AUM Subtotal | Liquidity and Overlay Services | Total | ||||||||||||||
December 31, 2019 | $ | 138 | $ | 79 | $ | 139 | $ | 356 | $ | 196 | $ | 552 | ||||||||
Inflows | 32 | 21 | 15 | 68 | 855 | 923 | ||||||||||||||
Outflows | (21) | (15) | (8) | (44) | (783) | (827) | ||||||||||||||
Market Impact | 19 | — | (5) | 14 | 1 | 15 | ||||||||||||||
Other | — | (1) | 4 | 3 | (1) | 2 | ||||||||||||||
June 30, 2020 | $ | 168 | $ | 84 | $ | 145 | $ | 397 | $ | 268 | $ | 665 |
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||
$ in billions
|
2021 | 2020 | 2021 | 2020 | ||||||||||
Equity | $ | 389 | $ | 146 | $ | 329 | $ | 142 | ||||||
Fixed income | 205 | 80 | 159 | 80 | ||||||||||
Alternatives and Solutions | 434 | 143 | 314 | 141 | ||||||||||
Long-term AUM subtotal | 1028 | 369 | 802 | 363 | ||||||||||
Liquidity and Overlay Services | 449 | 266 | 384 | 235 | ||||||||||
Total AUM | $ | 1,477 | $ | 635 | $ | 1,186 | $ | 598 |
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||
Fee rate in bps
|
2021 | 2020 | 2021 | 2020 | ||||||||||
Equity | 72 | 76 | 77 | 75 | ||||||||||
Fixed income | 38 | 29 | 38 | 30 | ||||||||||
Alternatives and Solutions | 33 | 58 | 40 | 59 | ||||||||||
Long-term AUM | 49 | 59 | 55 | 59 | ||||||||||
Liquidity and Overlay Services | 5 | 16 | 6 | 16 | ||||||||||
Total AUM | 35 | 41 | 39 | 42 |
June 2021 Form 10-Q |
15
|
Management’s Discussion and Analysis |
|
$ in billions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Investment securities portfolio: | ||||||||
Investment securities—AFS | $ | 73.4 | $ | 90.3 | ||||
Investment securities—HTM | 62.8 | 52.6 | ||||||
Total investment securities | $ | 136.2 | $ | 142.9 | ||||
Wealth Management Loans
2
|
||||||||
Residential real estate | $ | 38.9 | $ | 35.2 | ||||
Securities-based lending and Other
3
|
75.8 | 62.9 | ||||||
Total, net of ACL | $ | 114.7 | $ | 98.1 | ||||
Institutional Securities Loans
2
|
||||||||
Corporate | $ | 5.5 | $ | 7.9 | ||||
Secured lending facilities | 30.5 | 27.4 | ||||||
Commercial and Residential real estate | 9.8 | 10.1 | ||||||
Securities-based lending and Other | 7.1 | 5.4 | ||||||
Total, net of ACL | $ | 52.9 | $ | 50.8 | ||||
Total Assets | $ | 357.5 | $ | 346.5 | ||||
Deposits
4
|
$ | 318.7 | $ | 309.7 |
16
|
June 2021 Form 10-Q |
Management’s Discussion and Analysis |
|
At June 30, 2021 | ||||||||||||||
$ in millions | IS | WM | IM | Total | ||||||||||
Assets | ||||||||||||||
Cash and cash equivalents
|
$ | 88,778 | $ | 37,124 | $ | 578 | $ | 126,480 | ||||||
Trading assets at fair value
|
314,961 | 1,180 | 5,004 | 321,145 | ||||||||||
Investment securities
|
40,310 | 135,032 | — | 175,342 | ||||||||||
Securities purchased under agreements to resell | 79,414 | 16,516 | — | 95,930 | ||||||||||
Securities borrowed
|
125,358 | 1,345 | — | 126,703 | ||||||||||
Customer and other receivables | 66,965 | 32,714 | 1,242 | 100,921 | ||||||||||
Loans
1
|
51,329 | 114,708 | 22 | 166,059 | ||||||||||
Other assets
2
|
15,142 | 22,517 | 11,566 | 49,225 | ||||||||||
Total assets | $ | 782,257 | $ | 361,136 | $ | 18,412 | $ | 1,161,805 |
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 | ||||||||||
Loans
1
|
52,449 | 98,130 | 18 | 150,597 | ||||||||||
Other assets
2
|
13,986 | 22,458 | 1,913 | 38,357 | ||||||||||
Total assets
|
$ | 753,322 | $ | 355,595 | $ | 6,945 | $ | 1,115,862 |
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Cash deposits with central banks
|
$ | 67,662 | $ | 49,669 | ||||
Unencumbered HQLA Securities
1
:
|
||||||||
U.S. government obligations
|
127,603 | 136,555 | ||||||
U.S. agency and agency mortgage-backed securities
|
109,294 | 99,659 | ||||||
Non-U.S. sovereign obligations
2
|
29,204 | 39,745 | ||||||
Other investment grade securities
|
793 | 2,053 | ||||||
Total HQLA
1
|
$ | 334,556 | $ | 327,681 | ||||
Cash deposits with banks (non-HQLA) | 9,220 | 10,942 | ||||||
Total Liquidity Resources | $ | 343,776 | $ | 338,623 |
At
June 30, 2021 |
At
December 31, 2020 |
Average Daily Balance
Three Months Ended |
|||||||||
$ in millions | June 30, 2021 | ||||||||||
Bank legal entities
|
|||||||||||
U.S. | $ | 172,944 | $ | 178,033 | $ | 176,625 | |||||
Non-U.S. | 9,845 | 7,670 | 8,473 | ||||||||
Total Bank legal entities | 182,789 | 185,703 | 185,098 | ||||||||
Non-Bank legal entities
|
|||||||||||
U.S.: | |||||||||||
Parent Company
|
67,997 | 59,468 | 63,911 | ||||||||
Non-Parent Company
|
41,037 | 33,368 | 43,511 | ||||||||
Total U.S. | 109,034 | 92,836 | 107,422 | ||||||||
Non-U.S. | 51,953 | 60,084 | 59,394 | ||||||||
Total Non-Bank legal entities | 160,987 | 152,920 | 166,816 | ||||||||
Total Liquidity Resources | $ | 343,776 | $ | 338,623 | $ | 351,914 |
June 2021 Form 10-Q |
17
|
Management’s Discussion and Analysis |
|
Average Daily Balance
Three Months Ended |
||||||||
$ in millions | June 30, 2021 | March 31, 2021 | ||||||
Eligible HQLA
1
|
||||||||
Cash deposits with central banks | $ | 56,430 | $ | 50,815 | ||||
Securities
2
|
171,729 | 166,060 | ||||||
Total Eligible HQLA
1
|
$ | 228,159 | $ | 216,875 | ||||
LCR | 126 | % | 125 | % |
$ in millions |
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Securities purchased under agreements to resell and Securities borrowed | $ | 222,633 | $ | 228,625 | ||||
Securities sold under agreements to repurchase and Securities loaned | $ | 67,219 | $ | 58,318 | ||||
Securities received as collateral
1
|
$ | 7,166 | $ | 4,277 |
|
Average Daily Balance
Three Months Ended |
|||||||
$ in millions |
June 30,
2021 |
December 31,
2020 |
||||||
Securities purchased under agreements to resell and Securities borrowed | $ | 225,988 | $ | 195,376 | ||||
Securities sold under agreements to repurchase and Securities loaned | $ | 67,568 | $ | 54,528 |
18
|
June 2021 Form 10-Q |
Management’s Discussion and Analysis |
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Savings and demand deposits:
|
||||||||
Brokerage sweep deposits
1
|
$ | 256,730 | $ | 232,071 | ||||
Savings and other
|
42,951 | 47,150 | ||||||
Total Savings and demand deposits
|
299,681 | 279,221 | ||||||
Time deposits
|
20,677 | 31,561 | ||||||
Total
2
|
$ | 320,358 | $ | 310,782 |
$ in millions | Parent Company | Subsidiaries |
Total
|
||||||||
Original maturities of one year or less | $ | — | $ | 5,538 | $ | 5,538 | |||||
Original maturities greater than one year | |||||||||||
2021 | $ | 7,320 | $ | 2,600 | $ | 9,920 | |||||
2022 | 11,181 | 6,853 | 18,034 | ||||||||
2023 | 17,043 | 5,484 | 22,527 | ||||||||
2024 | 20,839 | 8,194 | 29,033 | ||||||||
2025 | 14,839 | 6,802 | 21,641 | ||||||||
Thereafter | 91,456 | 25,993 | 117,449 | ||||||||
Total | $ | 162,678 | $ | 55,926 | $ | 218,604 | |||||
Total Borrowings | $ | 162,678 | $ | 61,464 | $ | 224,142 | |||||
Maturities over next 12 months
2
|
|
$ | 16,891 |
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+ | Positive |
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 |
June 2021 Form 10-Q |
19
|
Management’s Discussion and Analysis |
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||
in millions, except for per share data
|
2021 | 2020 | 2021 | 2020 | ||||||||||
Number of shares | 34 | — | 62 | 29 | ||||||||||
Average price per share | $ | 86.21 | $ | — | $ | 82.31 | $ | 46.01 | ||||||
Total | $ | 2,939 | $ | — | $ | 5,074 | $ | 1,347 |
Announcement date | July 15, 2021 | ||||
Amount per share | $0.70 | ||||
Date to be paid | August 13, 2021 | ||||
Shareholders of record as of | July 30, 2021 |
20
|
June 2021 Form 10-Q |
Management’s Discussion and Analysis |
|
At June 30, 2021
and
December 31, 2020
|
|||||||||||||||||
Standardized | Advanced | ||||||||||||||||
Capital buffers | |||||||||||||||||
Capital conservation buffer | — | 2.5% | |||||||||||||||
SCB
1
|
5.7% | N/A | |||||||||||||||
G-SIB capital surcharge
2
|
3.0% | 3.0% | |||||||||||||||
CCyB
3
|
0% | 0% | |||||||||||||||
Capital buffer requirement
4
|
8.7% | 5.5% | |||||||||||||||
At June 30, 2021
and
December 31, 2020
|
|||||||||||||||||
Regulatory Minimum
|
Standardized | Advanced | |||||||||||||||
Required ratios
5
|
|||||||||||||||||
Common Equity Tier 1 capital ratio | 4.5 | % | 13.2% | 10.0% | |||||||||||||
Tier 1 capital ratio | 6.0 | % | 14.7% | 11.5% | |||||||||||||
Total capital ratio | 8.0 | % | 16.7% | 13.5% |
$ in millions |
Required
Ratio 1 |
At June 30, 2021 | At December 31, 2020 | ||||||||||||||||||||
Risk-based capital—
Standardized |
|||||||||||||||||||||||
Common Equity Tier 1 capital | $ | 76,815 | $ | 78,650 | |||||||||||||||||||
Tier 1 capital | 84,612 | 88,079 | |||||||||||||||||||||
Total capital | 92,782 | 97,213 | |||||||||||||||||||||
Total RWA | 462,808 | 453,106 | |||||||||||||||||||||
Common Equity Tier 1 capital ratio | 13.2 | % | 16.6 | % | 17.4 | % | |||||||||||||||||
Tier 1 capital ratio | 14.7 | % | 18.3 | % | 19.4 | % | |||||||||||||||||
Total capital ratio | 16.7 | % | 20.0 | % | 21.5 | % | |||||||||||||||||
$ in millions |
Required
Ratio 1 |
At June 30, 2021 | At December 31, 2020 | |||||||||||
Risk-based capital—
Advanced |
||||||||||||||
Common Equity Tier 1 capital | $ | 76,815 | $ | 78,650 | ||||||||||
Tier 1 capital | 84,612 | 88,079 | ||||||||||||
Total capital | 92,550 | 96,994 | ||||||||||||
Total RWA | 434,741 | 445,151 | ||||||||||||
Common Equity Tier 1 capital ratio | 10.0 | % | 17.7 | % | 17.7 | % | ||||||||
Tier 1 capital ratio | 11.5 | % | 19.5 | % | 19.8 | % | ||||||||
Total capital ratio | 13.5 | % | 21.3 | % | 21.8 | % | ||||||||
$ in millions |
Required
Ratio
1
|
At June 30, 2021 | At December 31, 2020 | |||||||||||
Leverage-based capital | ||||||||||||||
Adjusted average assets
2
|
$ | 1,135,262 | $ | 1,053,510 | ||||||||||
Tier 1 leverage ratio | 4.0 | % | 7.5 | % | 8.4 | % | ||||||||
Supplementary leverage exposure
3,4
|
$ | 1,439,971 | $ | 1,192,506 | ||||||||||
SLR
4
|
5.0 | % | 5.9 | % | 7.4 | % |
June 2021 Form 10-Q |
21
|
Management’s Discussion and Analysis |
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
Change
|
|||||||||||
Common Equity Tier 1 capital | ||||||||||||||
Common stock and surplus | $ | 16,852 | $ | 15,799 | $ | 1,053 | ||||||||
Retained earnings | 85,043 | 78,978 | 6,065 | |||||||||||
AOCI | (2,523) | (1,962) | (561) | |||||||||||
Regulatory adjustments and deductions: | ||||||||||||||
Net goodwill | (16,693) | (11,527) | (5,166) | |||||||||||
Net intangible assets | (7,032) | (4,165) | (2,867) | |||||||||||
Other adjustments and deductions
1
|
1,168 | 1,527 | (359) | |||||||||||
Total Common Equity Tier 1
capital |
$ | 76,815 | $ | 78,650 | $ | (1,835) | ||||||||
Additional Tier 1 capital | ||||||||||||||
Preferred stock | $ | 7,750 | $ | 9,250 | $ | (1,500) | ||||||||
Noncontrolling interests | 561 | 619 | (58) | |||||||||||
Additional Tier 1 capital | $ | 8,311 | $ | 9,869 | $ | (1,558) | ||||||||
Deduction for investments in covered funds | (514) | (440) | (74) | |||||||||||
Total Tier 1 capital | $ | 84,612 | $ | 88,079 | $ | (3,467) | ||||||||
Standardized Tier 2 capital | ||||||||||||||
Subordinated debt | $ | 7,107 | $ | 7,737 | $ | (630) | ||||||||
Eligible ACL | 1,168 | 1,265 | (97) | |||||||||||
Other adjustments and deductions | (105) | 132 | (237) | |||||||||||
Total Standardized Tier 2
capital |
$ | 8,170 | $ | 9,134 | $ | (964) | ||||||||
Total Standardized capital | $ | 92,782 | $ | 97,213 | $ | (4,431) | ||||||||
Advanced Tier 2 capital | ||||||||||||||
Subordinated debt | $ | 7,107 | $ | 7,737 | $ | (630) | ||||||||
Eligible credit reserves | 936 | 1,046 | (110) | |||||||||||
Other adjustments and
deductions |
(105) | 132 | (237) | |||||||||||
Total Advanced Tier 2 capital | $ | 7,938 | $ | 8,915 | $ | (977) | ||||||||
Total Advanced capital | $ | 92,550 | $ | 96,994 | $ | (4,444) |
|
Six Months Ended
June 30, 2021 |
|||||||
$ in millions
|
Standardized
|
Advanced
|
||||||
Credit risk RWA
|
||||||||
Balance at December 31, 2020 | $ | 387,066 | $ | 284,930 | ||||
Change related to the following items:
|
||||||||
Derivatives
|
3,182 | (18,766) | ||||||
Securities financing transactions
|
4,750 | 350 | ||||||
Investment securities
|
(2,422) | (257) | ||||||
Commitments, guarantees and loans
|
415 | 5,862 | ||||||
Equity investments
|
1,696 | 1,754 | ||||||
Other credit risk
1
|
4,992 | 4,444 | ||||||
Total change in credit risk RWA
|
$ | 12,613 | $ | (6,613) | ||||
Balance at June 30, 2021 | $ | 399,679 | $ | 278,317 | ||||
Market risk RWA
|
||||||||
Balance at December 31, 2020 | $ | 66,040 | $ | 66,040 | ||||
Change related to the following items:
|
||||||||
Regulatory VaR
|
(6,687) | (6,687) | ||||||
Regulatory stressed VaR
|
768 | 768 | ||||||
Incremental risk charge
|
(720) | (720) | ||||||
Comprehensive risk measure
|
(303) | (343) | ||||||
Specific risk | 4,031 | 4,031 | ||||||
Total change in market risk RWA
|
$ | (2,911) | $ | (2,951) | ||||
Balance at June 30, 2021 | $ | 63,129 | $ | 63,089 | ||||
Operational risk RWA
|
||||||||
Balance at December 31, 2020 | N/A | $ | 94,181 | |||||
Change in operational risk RWA
|
N/A | (846) | ||||||
Balance at June 30, 2021 | N/A | $ | 93,335 | |||||
Total RWA
|
$ | 462,808 | $ | 434,741 |
22
|
June 2021 Form 10-Q |
Management’s Discussion and Analysis |
|
|
Actual
Amount/Ratio
|
||||||||||||||||
$ in millions
|
Regulatory Minimum
|
Required Ratio
1
|
At
June 30, 2021 |
At
December 31, 2020 |
|||||||||||||
External TLAC
2
|
$ | 225,830 | $ | 216,129 | |||||||||||||
External TLAC as a % of RWA | 18.0 | % | 21.5 | % | 49.0 | % | 47.7 | % | |||||||||
External TLAC as a % of leverage exposure | 7.5 | % | 9.5 | % | 15.7 | % | 18.1 | % | |||||||||
Eligible LTD
3
|
$ | 131,951 | $ | 120,561 | |||||||||||||
Eligible LTD as a % of RWA | 9.0 | % | 9.0 | % | 28.5 | % | 26.6 | % | |||||||||
Eligible LTD as a % of leverage exposure | 4.5 | % | 4.5 | % | 9.2 | % | 10.1 | % |
June 2021 Form 10-Q |
23
|
Management’s Discussion and Analysis |
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
$ in billions
|
2021 | 2020 | 2021 | 2020 | ||||||||||
Institutional Securities
|
$ | 43.5 | $ | 42.8 | $ | 43.5 | $ | 42.8 | ||||||
Wealth Management
2
|
28.6 | 18.2 | 28.6 | 18.2 | ||||||||||
Investment Management
3
|
10.7 | 2.6 | 7.1 | 2.6 | ||||||||||
Parent
|
16.0 | 14.0 | 17.1 | 12.4 | ||||||||||
Total
|
$ | 98.8 | $ | 77.6 | $ | 96.3 | $ | 76.0 |
24
|
June 2021 Form 10-Q |
Management’s Discussion and Analysis |
|
June 2021 Form 10-Q |
25
|
|
Three Months Ended | |||||||||||||
June 30, 2021 | ||||||||||||||
$ in millions
|
Period
End
|
Average
|
High
2
|
Low
2
|
||||||||||
Interest rate and credit spread
|
$ | 29 | $ | 31 | $ | 39 | $ | 28 | ||||||
Equity price
|
21 | 24 | 32 | 19 | ||||||||||
Foreign exchange rate
|
8 | 8 | 15 | 5 | ||||||||||
Commodity price
|
10 | 11 | 16 | 8 | ||||||||||
Less: Diversification benefit
1
|
(28) | (29) | N/A | N/A | ||||||||||
Primary Risk Categories
|
$ | 40 | $ | 45 | $ | 58 | $ | 37 | ||||||
Credit Portfolio
|
12 | 13 | 17 | 11 | ||||||||||
Less: Diversification benefit
1
|
(9) | (10) | N/A | N/A | ||||||||||
Total Management VaR
|
$ | 43 | $ | 48 | $ | 60 | $ | 41 |
|
Three Months Ended | |||||||||||||
March 31, 2021 | ||||||||||||||
$ in millions
|
Period
End
|
Average
|
High
2
|
Low
2
|
||||||||||
Interest rate and credit spread
|
$ | 31 | $ | 33 | $ | 41 | $ | 29 | ||||||
Equity price
|
30 | 31 | 170 | 19 | ||||||||||
Foreign exchange rate
|
11 | 14 | 24 | 8 | ||||||||||
Commodity price
|
14 | 18 | 27 | 13 | ||||||||||
Less: Diversification benefit
1
|
(36) | (38) | N/A | N/A | ||||||||||
Primary Risk Categories
|
$ | 50 | $ | 58 | $ | 171 | $ | 44 | ||||||
Credit Portfolio
|
17 | 24 | 31 | 17 | ||||||||||
Less: Diversification benefit
1
|
(15) | (13) | N/A | N/A | ||||||||||
Total Management VaR
|
$ | 52 | $ | 69 | $ | 175 | $ | 50 |
26
|
June 2021 Form 10-Q |
Risk Disclosures |
|
$ in millions
|
At
June 30, 2021 |
At
March 31, 2021 |
||||||
Derivatives
|
$ | 7 | $ | 7 | ||||
Borrowings carried at fair value
|
48 | 47 |
$ in millions
|
At
June 30, 2021 |
At
March 31, 2021 |
||||||
Basis point change
|
||||||||
+100 | $ | 1,463 | $ | 1,671 | ||||
-100 | (498) | (560) |
|
Loss from 10% Decline
|
|||||||
$ in millions
|
At
June 30, 2021 |
At
March 31, 2021 |
||||||
Investments related to Investment Management activities | $ | 477 | $ | 472 | ||||
Other investments:
|
||||||||
MUMSS
|
172 | 174 | ||||||
Other Firm investments
|
232 | 223 |
June 2021 Form 10-Q |
27
|
Risk Disclosures |
|
|
At June 30, 2021 | |||||||||||||
$ in millions |
HFI
|
HFS
|
FVO
|
Total
|
||||||||||
Institutional Securities: | ||||||||||||||
Corporate
|
$ | 4,724 | $ | 7,098 | $ | 13 | $ | 11,835 | ||||||
Secured lending facilities
|
28,217 | 3,951 | 666 | 32,834 | ||||||||||
Commercial and Residential real estate
|
6,707 | 620 | 4,270 | 11,597 | ||||||||||
Securities-based lending and Other
|
586 | 5 | 9,353 | 9,944 | ||||||||||
Total Institutional Securities | 40,234 | 11,674 | 14,302 | 66,210 | ||||||||||
Wealth Management: | ||||||||||||||
Residential real estate
|
38,917 | 10 | — | 38,927 | ||||||||||
Securities-based lending and Other
|
75,877 | 12 | — | 75,889 | ||||||||||
Total Wealth Management | 114,794 | 22 | — | 114,816 | ||||||||||
Total Investment Management
1
|
5 | 17 | 843 | 865 | ||||||||||
Total loans
2
|
155,033 | 11,713 | 15,145 | 181,891 | ||||||||||
ACL | (687) | (687) | ||||||||||||
Total loans, net of ACL | $ | 154,346 | $ | 11,713 | $ | 15,145 | $ | 181,204 | ||||||
Lending commitments
3
|
$ | 139,257 | ||||||||||||
Total exposure |
|
|
|
$ | 320,461 |
|
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 Management
1
|
6 | 12 | 425 | 443 | ||||||||||
Total loans
2
|
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 commitments
3
|
$ | 127,855 | ||||||||||||
Total exposure |
|
|
|
$ | 289,600 |
28
|
June 2021 Form 10-Q |
Risk Disclosures |
|
$ in millions
|
|||||
ACL—Loans | $ | 835 | |||
ACL—Lending Commitments | 396 | ||||
Total at December 31, 2020 | 1,231 | ||||
Gross charge-offs | (102) | ||||
Provision for credit losses | (25) | ||||
Other | (5) | ||||
Total at June 30, 2021 | $ | 1,099 | |||
ACL—Loans | $ | 687 | |||
ACL—Lending commitments | 412 | ||||
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | |||||||||||||||||||
$ in millions | IS | WM | Total | IS | WM | Total | ||||||||||||||
Loans | $ | 12 | $ | 4 | $ | 16 | $ | (41) | $ | (1) | $ | (42) | ||||||||
Lending commitments | 58 | (1) | 57 | 18 | (1) | 17 | ||||||||||||||
Total | $ | 70 | $ | 3 | $ | 73 | $ | (23) | $ | (2) | $ | (25) |
At June 30, 2021 | At December 31, 2020 | |||||||||||||
IS
|
WM
|
IS
|
WM
|
|||||||||||
Accrual
|
98.8 | % | 99.3 | % | 99.2 | % | 99.7 | % | ||||||
Nonaccrual
1
|
1.2 | % | 0.7 | % | 0.8 | % | 0.3 | % |
|
At June 30, 2021 | ||||||||||||||||
|
Contractual Years to Maturity
|
|
|||||||||||||||
$ in millions
|
Less than 1
|
1-3
|
3-5
|
Over 5
|
Total
|
||||||||||||
Loans
|
|||||||||||||||||
AA
|
$ | 38 | $ | 9 | $ | — | $ | 69 | $ | 116 | |||||||
A
|
824 | 707 | 408 | 370 | 2,309 | ||||||||||||
BBB
|
6,297 | 5,113 | 2,287 | 578 | 14,275 | ||||||||||||
BB
|
11,581 | 9,095 | 4,234 | 1,285 | 26,195 | ||||||||||||
Other NIG
|
5,370 | 6,134 | 4,161 | 3,223 | 18,888 | ||||||||||||
Unrated
2
|
194 | 587 | 485 | 2,582 | 3,848 | ||||||||||||
Total loans, net of ACL | 24,304 | 21,645 | 11,575 | 8,107 | 65,631 | ||||||||||||
Lending commitments
|
|||||||||||||||||
AAA
|
— | 50 | — | — | 50 | ||||||||||||
AA
|
3,173 | 1,118 | 2,240 | — | 6,531 | ||||||||||||
A
|
4,822 | 6,600 | 10,180 | 584 | 22,186 | ||||||||||||
BBB
|
10,168 | 19,803 | 18,561 | 659 | 49,191 | ||||||||||||
BB
|
3,017 | 12,323 | 7,837 | 152 | 23,329 | ||||||||||||
Other NIG
|
1,649 | 6,663 | 8,292 | 6,915 | 23,519 | ||||||||||||
Unrated
2
|
— | 14 | 66 | 2 | 82 | ||||||||||||
Total lending commitments | 22,829 | 46,571 | 47,176 | 8,312 | 124,888 | ||||||||||||
Total exposure
|
$ | 47,133 | $ | 68,216 | $ | 58,751 | $ | 16,419 | $ | 190,519 |
June 2021 Form 10-Q |
29
|
Risk Disclosures |
|
|
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 | ||||||||||||
Unrated
2
|
141 | 142 | 330 | 2,322 | 2,935 | ||||||||||||
Total loans, net of ACL | 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 | ||||||||||||
Unrated
2
|
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 |
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Industry
|
||||||||
Financials | $ | 50,318 | $ | 44,358 | ||||
Real estate | 30,622 | 25,484 | ||||||
Healthcare | 17,471 | 12,650 | ||||||
Industrials | 17,069 | 15,861 | ||||||
Communications services | 12,481 | 12,600 | ||||||
Information technology | 11,704 | 11,358 | ||||||
Consumer discretionary | 10,626 | 11,177 | ||||||
Utilities | 10,355 | 9,504 | ||||||
Energy | 8,603 | 10,064 | ||||||
Consumer staples | 8,464 | 9,088 | ||||||
Materials | 5,808 | 6,084 | ||||||
Insurance | 4,583 | 3,889 | ||||||
Other | 2,415 | 4,515 | ||||||
Total exposure | $ | 190,519 | $ | 176,632 |
At June 30, 2021 | |||||||||||||||||
Contractual Years to Maturity
|
|||||||||||||||||
$ in millions
|
Less than 1
|
1-3
|
3-5
|
Over 5
|
Total
|
||||||||||||
Loans, net of ACL
|
$ | 1,415 | $ | 382 | $ | 498 | $ | 2,217 | $ | 4,512 | |||||||
Lending commitments
|
4,865 | 6,254 | 3,359 | 6,844 | 21,322 | ||||||||||||
Total exposure | $ | 6,280 | $ | 6,636 | $ | 3,857 | $ | 9,061 | $ | 25,834 |
|
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 |
30
|
June 2021 Form 10-Q |
Risk Disclosures |
|
At June 30, 2021 | |||||||||||||||||
$ in millions | Loans | Lending Commitments | Total | ||||||||||||||
Corporate | $ | 4,724 | $ | 72,175 | $ | 76,899 | |||||||||||
Secured lending facilities | 28,217 | 11,387 | 39,604 | ||||||||||||||
Commercial real estate | 6,707 | 308 | 7,015 | ||||||||||||||
Other | 586 | 661 | 1,247 | ||||||||||||||
Total, before ACL | $ | 40,234 | $ | 84,531 | $ | 124,765 | |||||||||||
ACL | $ | (579) | $ | (397) | $ | (976) |
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) |
$ in millions | Corporate | Secured lending facilities | Commercial real estate | Other | Total | ||||||||||||
ACL—Loans | $ | 309 | $ | 198 | $ | 211 | $ | 21 | $ | 739 | |||||||
ACL—Lending commitments | 323 | 38 | 11 | 19 | 391 | ||||||||||||
Total at December 31, 2020 | $ | 632 | $ | 236 | $ | 222 | $ | 40 | $ | 1,130 | |||||||
Gross charge-offs | (14) | (67) | (21) | — | (102) | ||||||||||||
Provision for credit losses | (77) | 49 | 5 | — | (23) | ||||||||||||
Other
1
|
(2) | (1) | (2) | (24) | (29) | ||||||||||||
Total at June 30, 2021 | $ | 539 | $ | 217 | $ | 204 | $ | 16 | $ | 976 | |||||||
ACL—Loans | $ | 199 | $ | 177 | $ | 194 | $ | 9 | $ | 579 | |||||||
ACL—Lending commitments | 340 | 40 | 10 | 7 | 397 | ||||||||||||
At
June 30, 2021 |
At
December 31, 2020 |
|||||||
Corporate | 4.2 | % | 5.1 | % | ||||
Secured lending facilities | 0.6 | % | 0.8 | % | ||||
Commercial real estate
|
2.9 | % | 2.9 | % | ||||
Other | 1.5 | % | 1.7 | % | ||||
Total Institutional Securities loans | 1.4 | % | 1.8 | % |
|
At June 30, 2021 | ||||||||||||||||
|
Contractual Years to Maturity
|
|
|||||||||||||||
$ in millions
|
Less than 1
|
1-3
|
3-5
|
Over 5
|
Total
|
||||||||||||
Securities-based lending and Other | $ | 65,156 | $ | 6,641 | $ | 2,236 | $ | 1,804 | $ | 75,837 | |||||||
Residential real estate | 7 | — | 6 | 38,858 | 38,871 | ||||||||||||
Total loans, net of ACL | $ | 65,163 | $ | 6,641 | $ | 2,242 | $ | 40,662 | $ | 114,708 | |||||||
Lending commitments | 11,104 | 2,771 | 170 | 324 | 14,369 | ||||||||||||
Total exposure | $ | 76,267 | $ | 9,412 | $ | 2,412 | $ | 40,986 | $ | 129,077 |
|
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 | $ | 54,483 | $ | 4,587 | $ | 2,167 | $ | 1,672 | $ | 62,909 | |||||||
Residential real estate | 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 |
June 2021 Form 10-Q |
31
|
Risk Disclosures |
|
$ in millions
|
|||||
ACL—Loans | $ | 96 | |||
ACL—Lending commitments | 5 | ||||
Total at December 31, 2020 | 101 | ||||
Provision for credit losses | (2) | ||||
Other
1
|
24 | ||||
Total at June 30, 2021 | $ | 123 | |||
ACL—Loans | $ | 108 | |||
ACL—Lending commitments | 15 | ||||
$ in millions |
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Institutional Securities | $ | 46,020 | $ | 51,570 | ||||
Wealth Management | 26,922 | 23,144 | ||||||
Total | $ | 72,942 | $ | 74,714 |
|
Counterparty Credit Rating
1
|
|
||||||||||||||||||
$ in millions
|
AAA
|
AA
|
A
|
BBB
|
NIG
|
Total
|
||||||||||||||
At June 30, 2021 | ||||||||||||||||||||
Less than 1 year
|
$ | 1,344 | $ | 12,729 | $ | 36,065 | $ | 20,945 | $ | 11,900 | $ | 82,983 | ||||||||
1-3 years
|
633 | 4,916 | 14,962 | 12,941 | 8,197 | 41,649 | ||||||||||||||
3-5 years
|
471 | 4,702 | 8,440 | 8,095 | 3,690 | 25,398 | ||||||||||||||
Over 5 years
|
4,237 | 26,890 | 66,977 | 48,258 | 10,438 | 156,800 | ||||||||||||||
Total, gross
|
$ | 6,685 | $ | 49,237 | $ | 126,444 | $ | 90,239 | $ | 34,225 | $ | 306,830 | ||||||||
Counterparty netting
|
(3,141) | (36,880) | (98,646) | (66,879) | (16,635) | (222,181) | ||||||||||||||
Cash and securities collateral | (3,064) | (8,779) | (22,973) | (17,233) | (8,166) | (60,215) | ||||||||||||||
Total, net | $ | 480 | $ | 3,578 | $ | 4,825 | $ | 6,127 | $ | 9,424 | $ | 24,434 |
|
Counterparty Credit Rating
1
|
|
||||||||||||||||||
$ in millions
|
AAA
|
AA
|
A
|
BBB
|
NIG
|
Total
|
||||||||||||||
At December 31, 2020 | ||||||||||||||||||||
Less than 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 |
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Industry
|
||||||||
Financials | $ | 7,613 | $ | 6,195 | ||||
Utilities | 4,750 | 3,954 | ||||||
Consumer discretionary | 2,314 | 1,866 | ||||||
Energy | 2,040 | 965 | ||||||
Healthcare | 1,011 | 1,494 | ||||||
Industrials | 953 | 1,291 | ||||||
Information technology | 929 | 1,104 | ||||||
Regional governments | 843 | 806 | ||||||
Not-for-profit organizations | 661 | 701 | ||||||
Real estate | 600 | 378 | ||||||
Communications services | 496 | 529 | ||||||
Insurance | 451 | 518 | ||||||
Sovereign governments | 373 | 650 | ||||||
Materials | 329 | 430 | ||||||
Consumer staples | 291 | 339 | ||||||
Other | 780 | 81 | ||||||
Total
|
$ | 24,434 | $ | 21,301 |
32
|
June 2021 Form 10-Q |
Risk Disclosures |
|
$ in millions | United Kingdom | Japan | Germany | France | Spain | ||||||||||||
Sovereign | |||||||||||||||||
Net inventory
1
|
$ | (43) | $ | 5,101 | $ | 54 | $ | (471) | $ | (197) | |||||||
Net counterparty exposure
2
|
1 | 45 | 85 | 6 | 29 | ||||||||||||
Exposure before hedges | (42) | 5,146 | 139 | (465) | (168) | ||||||||||||
Hedges
3
|
(310) | (79) | (287) | (6) | — | ||||||||||||
Net exposure | $ | (352) | $ | 5,067 | $ | (148) | $ | (471) | $ | (168) | |||||||
Non-sovereign | |||||||||||||||||
Net inventory
1
|
$ | 1,084 | $ | 615 | $ | 7 | $ | (338) | $ | 72 | |||||||
Net counterparty exposure
2
|
11,117 | 4,257 | 2,788 | 3,068 | 391 | ||||||||||||
Loans | 3,648 | 381 | 1,725 | 513 | 3,351 | ||||||||||||
Lending commitments | 6,165 | 180 | 5,979 | 6,118 | 1,313 | ||||||||||||
Exposure before hedges | 22,014 | 5,433 | 10,499 | 9,361 | 5,127 | ||||||||||||
Hedges
3
|
(1,388) | (162) | (1,015) | (734) | (266) | ||||||||||||
Net exposure | $ | 20,626 | $ | 5,271 | $ | 9,484 | $ | 8,627 | $ | 4,861 | |||||||
Total net exposure | $ | 20,274 | $ | 10,338 | $ | 9,336 | $ | 8,156 | $ | 4,693 |
$ in millions | China | India | Australia | Canada | Brazil | ||||||||||||
Sovereign | |||||||||||||||||
Net inventory
1
|
$ | (89) | $ | 1,178 | $ | 570 | $ | (447) | $ | 2,115 | |||||||
Net counterparty exposure
2
|
102 | 2 | 45 | 21 | — | ||||||||||||
Exposure before hedges | 13 | 1,180 | 615 | (426) | 2,115 | ||||||||||||
Hedges
3
|
(82) | — | — | — | (12) | ||||||||||||
Net exposure | $ | (69) | $ | 1,180 | $ | 615 | $ | (426) | $ | 2,103 | |||||||
Non-sovereign | |||||||||||||||||
Net inventory
1
|
$ | 1,548 | $ | 850 | $ | 228 | $ | 228 | $ | 233 | |||||||
Net counterparty exposure
2
|
780 | 891 | 1,061 | 1,713 | 320 | ||||||||||||
Loans | 744 | 235 | 489 | 141 | 188 | ||||||||||||
Lending commitments | 1,489 | — | 905 | 1,483 | 183 | ||||||||||||
Exposure before hedges | 4,561 | 1,976 | 2,683 | 3,565 | 924 | ||||||||||||
Hedges
3
|
(131) | — | (185) | (85) | (25) | ||||||||||||
Net exposure | $ | 4,430 | $ | 1,976 | $ | 2,498 | $ | 3,480 | $ | 899 | |||||||
Total net exposure | $ | 4,361 | $ | 3,156 | $ | 3,113 | $ | 3,054 | $ | 3,002 |
$ in millions
|
At
June 30, 2021 |
|||||||
Country of Risk
|
Collateral
2
|
|||||||
Germany | Italy, Croatia and Spain | $ | 11,765 | |||||
United Kingdom | U.K., U.S. and Spain | 10,434 | ||||||
Other | Japan, Italy, and France | 17,737 |
June 2021 Form 10-Q |
33
|
Risk Disclosures |
|
34
|
June 2021 Form 10-Q |
/s/ Deloitte & Touche LLP
|
||
New York, New York
|
||
August 2, 2021 |
June 2021 Form 10-Q |
35
|
Consolidated Income Statements
(Unaudited) |
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||
in millions, except per share data | 2021 | 2020 | 2021 | 2020 | ||||||||||
Revenues | ||||||||||||||
Investment banking | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Trading |
|
|
|
|
||||||||||
Investments |
|
|
|
|
||||||||||
Commissions and fees |
|
|
|
|
||||||||||
Asset management |
|
|
|
|
||||||||||
Other |
|
|
|
|
||||||||||
Total non-interest revenues |
|
|
|
|
||||||||||
Interest income |
|
|
|
|
||||||||||
Interest expense |
|
|
|
|
||||||||||
Net interest |
|
|
|
|
||||||||||
Net revenues |
|
|
|
|
||||||||||
Provision for credit losses |
|
|
(
|
|
||||||||||
Non-interest expenses | ||||||||||||||
Compensation and benefits |
|
|
|
|
||||||||||
Brokerage, clearing and exchange fees |
|
|
|
|
||||||||||
Information processing and communications |
|
|
|
|
||||||||||
Professional services |
|
|
|
|
||||||||||
Occupancy and equipment |
|
|
|
|
||||||||||
Marketing and business development |
|
|
|
|
||||||||||
Other |
|
|
|
|
||||||||||
Total non-interest expenses |
|
|
|
|
||||||||||
Income before provision for income taxes |
|
|
|
|
||||||||||
Provision for income taxes |
|
|
|
|
||||||||||
Net income | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Net income applicable to noncontrolling interests |
|
|
|
|
||||||||||
Net income applicable to Morgan Stanley | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Preferred stock dividends |
|
|
|
|
||||||||||
Earnings applicable to Morgan Stanley common shareholders | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Earnings per common share | ||||||||||||||
Basic | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Diluted | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Average common shares outstanding | ||||||||||||||
Basic |
|
|
|
|
||||||||||
Diluted |
|
|
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Net income | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Foreign currency translation adjustments |
|
|
(
|
(
|
||||||||||
Change in net unrealized gains (losses) on available-for-sale securities |
(
|
|
(
|
|
||||||||||
Pension and other |
|
(
|
|
|
||||||||||
Change in net debt valuation adjustment |
|
(
|
|
|
||||||||||
Total other comprehensive income (loss) | $ |
|
$ |
(
|
$ |
(
|
$ |
|
||||||
Comprehensive income | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Net income applicable to noncontrolling interests |
|
|
|
|
||||||||||
Other comprehensive income (loss) applicable to noncontrolling interests |
|
(
|
(
|
|
||||||||||
Comprehensive income applicable to Morgan Stanley | $ |
|
$ |
|
$ |
|
$ |
|
June 2021 Form 10-Q |
36
|
See Notes to Consolidated Financial Statements |
Consolidated Balance Sheets
|
|
$ in millions, except share data
|
(Unaudited)
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Assets | ||||||||
Cash and cash equivalents
|
$ |
|
$ |
|
||||
Trading assets at fair value (
$
|
|
|
||||||
Investment securities (includes
$
|
|
|
||||||
Securities purchased under agreements to resell (includes
$
|
|
|
||||||
Securities borrowed |
|
|
||||||
Customer and other receivables |
|
|
||||||
Loans: | ||||||||
Held for investment (net of allowance for credit losses of
$
|
|
|
||||||
Held for sale |
|
|
||||||
Goodwill |
|
|
||||||
Intangible assets (net of accumulated amortization of
$
|
|
|
||||||
Other assets |
|
|
||||||
Total assets | $ |
|
$ |
|
||||
Liabilities | ||||||||
Deposits (includes
$
|
$ |
|
$ |
|
||||
Trading liabilities at fair value |
|
|
||||||
Securities sold under agreements to repurchase (includes
$
|
|
|
||||||
Securities loaned |
|
|
||||||
Other secured financings (includes
$
|
|
|
||||||
Customer and other payables |
|
|
||||||
Other liabilities and accrued expenses |
|
|
||||||
Borrowings (includes
$
|
|
|
||||||
Total liabilities |
|
|
||||||
Commitments and contingent liabilities (see Note 14) |
|
|
||||||
|
||||||||
Morgan Stanley shareholders’ equity: | ||||||||
Preferred stock |
|
|
||||||
Common stock, $
|
||||||||
Shares authorized:
|
|
|
||||||
Additional paid-in capital |
|
|
||||||
Retained earnings |
|
|
||||||
Employee stock trusts |
|
|
||||||
Accumulated other comprehensive income (loss) |
(
|
(
|
||||||
Common stock held in treasury at cost, $
|
(
|
(
|
||||||
Common stock issued to employee stock trusts |
(
|
(
|
||||||
Total Morgan Stanley shareholders’ equity |
|
|
||||||
Noncontrolling interests |
|
|
||||||
Total equity |
|
|
||||||
Total liabilities and equity | $ |
|
$ |
|
See Notes to Consolidated Financial Statements |
37
|
June 2021 Form 10-Q |
Consolidated Statements of Changes in Total Equity
(Unaudited) |
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Preferred Stock
|
||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Redemption of Series J preferred stock | — | — |
(
|
— | ||||||||||
Ending balance |
|
|
|
|
||||||||||
Common Stock
|
||||||||||||||
Beginning and ending balance
|
|
|
|
|
||||||||||
Additional Paid-in Capital
|
||||||||||||||
Beginning balance |
|
|
|
|
||||||||||
Share-based award activity |
|
|
|
(
|
||||||||||
Issuance of common stock for the acquisition of Eaton Vance | — | — |
|
— | ||||||||||
Other net increases (decreases) | — | — |
|
— | ||||||||||
Ending balance
|
|
|
|
|
||||||||||
Retained Earnings
|
||||||||||||||
Beginning balance |
|
|
|
|
||||||||||
Cumulative adjustment related to the adoption of financial instruments-credit losses accounting update
1
|
|
|
|
(
|
||||||||||
Net income applicable to Morgan Stanley
|
|
|
|
|
||||||||||
Preferred stock dividends
2
|
(
|
(
|
(
|
(
|
||||||||||
Common stock dividends
2
|
(
|
(
|
(
|
(
|
||||||||||
Other net increases (decreases) | — | — |
(
|
— | ||||||||||
Ending balance
|
|
|
|
|
||||||||||
Employee Stock Trusts
|
||||||||||||||
Beginning balance
|
|
|
|
|
||||||||||
Share-based award activity
|
(
|
(
|
|
|
||||||||||
Ending balance
|
|
|
|
|
||||||||||
Accumulated Other Comprehensive Income (Loss)
|
||||||||||||||
Beginning balance
|
(
|
|
(
|
(
|
||||||||||
Net change in Accumulated other comprehensive income (loss)
|
|
(
|
(
|
|
||||||||||
Ending balance
|
(
|
|
(
|
|
||||||||||
Common Stock Held in Treasury at Cost | ||||||||||||||
Beginning balance
|
(
|
(
|
(
|
(
|
||||||||||
Share-based award activity
|
|
|
|
|
||||||||||
Repurchases of common stock and employee tax withholdings
|
(
|
(
|
(
|
(
|
||||||||||
Issuance of common stock for the acquisition of Eaton Vance | — | — |
|
— | ||||||||||
Ending balance
|
(
|
(
|
(
|
(
|
||||||||||
Common Stock Issued to Employee Stock Trusts
|
||||||||||||||
Beginning balance
|
(
|
(
|
(
|
(
|
||||||||||
Share-based award activity
|
|
|
(
|
(
|
||||||||||
Ending balance
|
(
|
(
|
(
|
(
|
||||||||||
Noncontrolling Interests | ||||||||||||||
Beginning balance
|
|
|
|
|
||||||||||
Net income applicable to noncontrolling interests |
|
|
|
|
||||||||||
Net change in Accumulated other comprehensive income (loss) applicable to noncontrolling interests |
|
(
|
(
|
|
||||||||||
Other net increases (decreases)
|
(
|
|
(
|
|
||||||||||
Ending balance
|
|
|
|
|
||||||||||
Total Equity
|
$ |
|
$ |
|
$ |
|
$ |
|
June 2021 Form 10-Q |
38
|
See Notes to Consolidated Financial Statements |
Consolidated Cash Flow Statements
(Unaudited) |
|
|
Six Months Ended
June 30, |
|||||||
$ in millions | 2021 | 2020 | ||||||
Cash flows from operating activities | ||||||||
Net income | $ |
|
$ |
|
||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||
Stock-based compensation expense |
|
|
||||||
Depreciation and amortization |
|
|
||||||
Provision for credit losses |
(
|
|
||||||
Other operating adjustments |
(
|
|
||||||
Changes in assets and liabilities: | ||||||||
Trading assets, net of Trading liabilities |
(
|
|
||||||
Securities borrowed |
(
|
(
|
||||||
Securities loaned |
|
|
||||||
Customer and other receivables and other assets |
(
|
(
|
||||||
Customer and other payables and other liabilities |
|
(
|
||||||
Securities purchased under agreements to resell |
|
(
|
||||||
Securities sold under agreements to repurchase |
|
(
|
||||||
Net cash provided by (used for) operating activities |
|
|
||||||
Cash flows from investing activities | ||||||||
Proceeds from (payments for): | ||||||||
Other assets—Premises, equipment and software, net |
(
|
(
|
||||||
Changes in loans, net |
(
|
(
|
||||||
Investment securities: | ||||||||
Purchases |
(
|
(
|
||||||
Proceeds from sales |
|
|
||||||
Proceeds from paydowns and maturities |
|
|
||||||
Cash paid as part of the Eaton Vance acquisition, net of cash acquired |
(
|
|
||||||
Other investing activities |
(
|
(
|
||||||
Net cash provided by (used for) investing activities |
(
|
(
|
||||||
Cash flows from financing activities | ||||||||
Net proceeds from (payments for): | ||||||||
Other secured financings |
(
|
|
||||||
Deposits |
|
|
||||||
Proceeds from issuance of Borrowings |
|
|
||||||
Payments for: | ||||||||
Borrowings |
(
|
(
|
||||||
Repurchases of common stock and employee tax withholdings |
(
|
(
|
||||||
Cash dividends |
(
|
(
|
||||||
Other financing activities |
(
|
(
|
||||||
Net cash provided by (used for) financing activities |
|
|
||||||
Effect of exchange rate changes on cash and cash equivalents |
(
|
(
|
||||||
Net increase (decrease) in cash and cash equivalents |
|
|
||||||
Cash and cash equivalents, at beginning of period |
|
|
||||||
Cash and cash equivalents, at end of period | $ |
|
$ |
|
||||
Supplemental Disclosure of Cash Flow Information | ||||||||
Cash payments for: | ||||||||
Interest | $ |
|
$ |
|
||||
Income taxes, net of refunds |
|
|
See Notes to Consolidated Financial Statements |
39
|
June 2021 Form 10-Q |
Notes to Consolidated Financial Statements
(Unaudited) |
|
June 2021 Form 10-Q |
40
|
Notes to Consolidated Financial Statements
(Unaudited) |
|
$ in millions |
At
March 1, 2021 |
||||
Assets | |||||
Cash and cash equivalents | $ |
|
|||
Trading assets at fair value: | |||||
Loans and lending commitments |
|
||||
Investments |
|
||||
Corporate and other debt |
|
||||
Customer and other receivables |
|
||||
Goodwill |
|
||||
Intangible assets |
|
||||
Other assets |
|
||||
Total assets | $ |
|
|||
Liabilities | |||||
Other secured financings | $ |
|
|||
Other liabilities and accrued expenses |
|
||||
Borrowings |
|
||||
Total liabilities | $ |
|
$ in millions |
Weighted
average life (years) |
At
March 1, 2021 |
||||||
Non-amortizable | ||||||||
Management contracts | indefinite | $ |
|
|||||
Amortizable | ||||||||
Customer relationships |
|
|
||||||
Tradenames |
|
|
||||||
Management contracts |
|
|
||||||
Total acquired Intangible assets | $ |
|
$ in millions |
Three Months Ended
June 30, 2021 |
Six Months Ended
June 30, 2021
1
|
||||||
Net revenues | $ |
|
$ |
|
||||
Net income |
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
$ in millions |
2021
1
|
2020 | 2021 | 2020 | ||||||||||
Net revenues | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Net income |
|
|
|
|
41
|
June 2021 Form 10-Q |
Notes to Consolidated Financial Statements
(Unaudited) |
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Cash and due from banks | $ |
|
$ |
|
||||
Interest bearing deposits with banks |
|
|
||||||
Total Cash and cash equivalents | $ |
|
$ |
|
||||
Restricted cash | $ |
|
$ |
|
At June 30, 2021 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 |
Netting
1
|
Total | ||||||||||||
Assets at fair value | |||||||||||||||||
Trading assets: | |||||||||||||||||
U.S. Treasury and agency securities | $ |
|
$ |
|
$ |
|
$ | — | $ |
|
|||||||
Other sovereign government obligations |
|
|
|
— |
|
||||||||||||
State and municipal securities |
|
|
|
— |
|
||||||||||||
MABS |
|
|
|
— |
|
||||||||||||
Loans and lending commitments
2
|
|
|
|
— |
|
||||||||||||
Corporate and other debt |
|
|
|
— |
|
||||||||||||
Corporate equities
3
|
|
|
|
— |
|
||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate |
|
|
|
— |
|
||||||||||||
Credit |
|
|
|
— |
|
||||||||||||
Foreign exchange |
|
|
|
— |
|
||||||||||||
Equity |
|
|
|
— |
|
||||||||||||
Commodity and other |
|
|
|
— |
|
||||||||||||
Netting
1
|
(
|
(
|
(
|
(
|
(
|
||||||||||||
Total derivative and other contracts |
|
|
|
(
|
|
||||||||||||
Investments
4
|
|
|
|
— |
|
||||||||||||
Physical commodities |
|
|
|
— |
|
||||||||||||
Total trading assets
4
|
|
|
|
(
|
|
||||||||||||
Investment securities—AFS |
|
|
|
— |
|
||||||||||||
Securities purchased under agreements to resell |
|
|
|
— |
|
||||||||||||
Total assets at fair value | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
At June 30, 2021 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 |
Netting
1
|
Total | ||||||||||||
Liabilities at fair value | |||||||||||||||||
Deposits | $ |
|
$ |
|
$ |
|
$ | — | $ |
|
|||||||
Trading liabilities: | |||||||||||||||||
U.S. Treasury and agency securities |
|
|
|
— |
|
||||||||||||
Other sovereign government obligations |
|
|
|
— |
|
||||||||||||
Corporate and other debt |
|
|
|
— |
|
||||||||||||
Corporate equities
3
|
|
|
|
— |
|
||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate |
|
|
|
— |
|
||||||||||||
Credit |
|
|
|
— |
|
||||||||||||
Foreign exchange |
|
|
|
— |
|
||||||||||||
Equity |
|
|
|
— |
|
||||||||||||
Commodity and other |
|
|
|
— |
|
||||||||||||
Netting
1
|
(
|
(
|
(
|
(
|
(
|
||||||||||||
Total derivative and other contracts |
|
|
|
(
|
|
||||||||||||
Total trading liabilities |
|
|
|
(
|
|
||||||||||||
Securities sold under agreements to repurchase |
|
|
|
— |
|
||||||||||||
Other secured financings |
|
|
|
— |
|
||||||||||||
Borrowings |
|
|
|
— |
|
||||||||||||
Total liabilities at fair value | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
At December 31, 2020 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 |
Netting
1
|
Total | ||||||||||||
Assets at fair value | |||||||||||||||||
Trading assets: | |||||||||||||||||
U.S. Treasury and agency securities | $ |
|
$ |
|
$ |
|
$ | — | $ |
|
|||||||
Other sovereign government obligations |
|
|
|
— |
|
||||||||||||
State and municipal securities |
|
|
|
— |
|
||||||||||||
MABS |
|
|
|
— |
|
||||||||||||
Loans and lending commitments
2
|
|
|
|
— |
|
||||||||||||
Corporate and other debt |
|
|
|
— |
|
||||||||||||
Corporate equities
3
|
|
|
|
— |
|
||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate |
|
|
|
— |
|
||||||||||||
Credit |
|
|
|
— |
|
||||||||||||
Foreign exchange |
|
|
|
— |
|
||||||||||||
Equity |
|
|
|
— |
|
||||||||||||
Commodity and other |
|
|
|
— |
|
||||||||||||
Netting
1
|
(
|
(
|
(
|
(
|
(
|
||||||||||||
Total derivative and other contracts |
|
|
|
(
|
|
||||||||||||
Investments
4
|
|
|
|
— |
|
||||||||||||
Physical commodities |
|
|
|
— |
|
||||||||||||
Total trading assets
4
|
|
|
|
(
|
|
||||||||||||
Investment securities—AFS |
|
|
|
— |
|
||||||||||||
Securities purchased under agreements to resell |
|
|
|
— |
|
||||||||||||
Total assets at fair value | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
June 2021 Form 10-Q |
42
|
Notes to Consolidated Financial Statements
(Unaudited) |
|
At December 31, 2020 | |||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 |
Netting
1
|
Total | ||||||||||||
Liabilities at fair value | |||||||||||||||||
Deposits | $ |
|
$ |
|
$ |
|
$ | — | $ |
|
|||||||
Trading liabilities: | |||||||||||||||||
U.S. Treasury and agency securities |
|
|
|
— |
|
||||||||||||
Other sovereign government obligations |
|
|
|
— |
|
||||||||||||
Corporate and other debt |
|
|
|
— |
|
||||||||||||
Corporate equities
3
|
|
|
|
— |
|
||||||||||||
Derivative and other contracts: | |||||||||||||||||
Interest rate |
|
|
|
— |
|
||||||||||||
Credit |
|
|
|
— |
|
||||||||||||
Foreign exchange |
|
|
|
— |
|
||||||||||||
Equity |
|
|
|
— |
|
||||||||||||
Commodity and other |
|
|
|
— |
|
||||||||||||
Netting
1
|
(
|
(
|
(
|
(
|
(
|
||||||||||||
Total derivative and other contracts |
|
|
|
(
|
|
||||||||||||
Total trading liabilities |
|
|
|
(
|
|
||||||||||||
Securities sold under agreements to repurchase |
|
|
|
— |
|
||||||||||||
Other secured financings |
|
|
|
— |
|
||||||||||||
Borrowings |
|
|
|
— |
|
||||||||||||
Total liabilities at fair value | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
$ in millions |
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Corporate | $ |
|
$ |
|
||||
Secured lending facilities |
|
|
||||||
Commercial Real Estate |
|
|
||||||
Residential Real Estate |
|
|
||||||
Securities-based lending and Other loans |
|
|
||||||
Total | $ |
|
$ |
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Customer and other receivables, net | $ |
|
$ |
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
U.S. Treasury and agency securities | ||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Realized and unrealized gains (losses) |
|
(
|
|
(
|
||||||||||
Purchases |
|
|
|
|
||||||||||
Sales |
(
|
(
|
(
|
(
|
||||||||||
Net transfers |
|
(
|
|
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized gains (losses) | $ |
|
$ |
(
|
$ |
|
$ |
(
|
||||||
Other sovereign government obligations | ||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Realized and unrealized gains (losses) |
|
(
|
|
|
||||||||||
Purchases |
|
|
|
|
||||||||||
Sales |
(
|
(
|
(
|
(
|
||||||||||
Net transfers |
|
(
|
(
|
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized gains (losses) | $ |
|
$ |
(
|
$ |
|
$ |
|
||||||
State and municipal securities | ||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Purchases |
|
|
|
|
||||||||||
Net transfers |
|
(
|
|
(
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized gains (losses) | $ |
|
$ |
|
$ |
|
$ |
|
||||||
MABS | ||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Realized and unrealized gains (losses) |
|
|
|
(
|
||||||||||
Purchases |
|
|
|
|
||||||||||
Sales |
(
|
(
|
(
|
(
|
||||||||||
Net transfers |
|
|
(
|
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized gains (losses) | $ |
|
$ |
|
$ |
|
$ |
(
|
||||||
Loans and lending commitments | ||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Realized and unrealized gains (losses) |
|
(
|
|
(
|
||||||||||
Purchases and originations |
|
|
|
|
||||||||||
Sales |
(
|
(
|
(
|
(
|
||||||||||
Settlements |
(
|
(
|
(
|
(
|
||||||||||
Net transfers
1
|
|
(
|
(
|
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized gains (losses) | $ |
|
$ |
|
$ |
|
$ |
(
|
||||||
Corporate and other debt | ||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Realized and unrealized gains (losses) |
|
|
|
(
|
||||||||||
Purchases and originations |
|
|
|
|
||||||||||
Sales |
(
|
(
|
(
|
(
|
||||||||||
Settlements |
|
(
|
|
(
|
||||||||||
Net transfers
2
|
(
|
|
(
|
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized gains (losses) | $ |
|
$ |
|
$ |
|
$ |
(
|
43
|
June 2021 Form 10-Q |
Notes to Consolidated Financial Statements
(Unaudited) |
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Corporate equities | ||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Realized and unrealized gains (losses) |
|
(
|
|
(
|
||||||||||
Purchases |
|
|
|
|
||||||||||
Sales |
(
|
(
|
(
|
(
|
||||||||||
Net transfers |
|
(
|
|
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized gains (losses) | $ |
|
$ |
(
|
$ |
|
$ |
(
|
||||||
Investments | ||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Realized and unrealized gains (losses) |
|
(
|
|
(
|
||||||||||
Purchases |
|
|
|
|
||||||||||
Sales |
(
|
(
|
(
|
(
|
||||||||||
Net transfers |
(
|
|
(
|
(
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized gains (losses) | $ |
|
$ |
(
|
$ |
|
$ |
(
|
||||||
Investment securities —AFS | ||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Realized and unrealized gains (losses) |
|
|
(
|
|
||||||||||
Sales |
(
|
|
(
|
|
||||||||||
Net transfers
3
|
(
|
|
(
|
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized gains (losses) | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Securities purchased under agreements to resell | ||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Net transfers |
|
|
(
|
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized gains (losses) | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Net derivatives: Interest rate | ||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Realized and unrealized gains (losses) |
(
|
(
|
(
|
|
||||||||||
Purchases |
|
|
|
|
||||||||||
Issuances |
(
|
(
|
(
|
(
|
||||||||||
Settlements |
|
(
|
|
(
|
||||||||||
Net transfers |
|
|
|
(
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized gains (losses) | $ |
(
|
$ |
(
|
$ |
(
|
$ |
|
||||||
Net derivatives: Credit | ||||||||||||||
Beginning balance | $ |
(
|
$ |
|
$ |
|
$ |
|
||||||
Realized and unrealized gains (losses) |
(
|
(
|
(
|
(
|
||||||||||
Purchases |
|
|
|
|
||||||||||
Issuances |
(
|
(
|
(
|
(
|
||||||||||
Settlements |
|
|
(
|
|
||||||||||
Net transfers |
(
|
(
|
(
|
(
|
||||||||||
Ending balance | $ |
(
|
$ |
|
$ |
(
|
$ |
|
||||||
Unrealized gains (losses) | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Net derivatives: Foreign exchange | ||||||||||||||
Beginning balance | $ |
(
|
$ |
(
|
$ |
|
$ |
(
|
||||||
Realized and unrealized gains (losses) |
|
|
(
|
|
||||||||||
Purchases |
|
|
|
|
||||||||||
Issuances |
|
|
(
|
(
|
||||||||||
Settlements |
|
|
(
|
(
|
||||||||||
Net transfers |
|
|
|
(
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized gains (losses) | $ |
(
|
$ |
|
$ |
|
$ |
|
||||||
Net derivatives: Equity | ||||||||||||||
Beginning balance | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
||||||
Realized and unrealized gains (losses) |
|
(
|
|
|
||||||||||
Purchases |
|
|
|
|
||||||||||
Issuances |
(
|
(
|
(
|
(
|
||||||||||
Settlements |
|
|
|
(
|
||||||||||
Net transfers
2
|
|
(
|
|
|
||||||||||
Ending balance | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
||||||
Unrealized gains (losses) | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
||||||
Net derivatives: Commodity and other | ||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Realized and unrealized gains (losses) |
|
|
|
|
||||||||||
Purchases |
|
|
|
|
||||||||||
Issuances |
|
(
|
(
|
(
|
||||||||||
Settlements |
(
|
(
|
(
|
|
||||||||||
Net transfers |
(
|
|
(
|
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized gains (losses) | $ |
(
|
$ |
|
$ |
|
$ |
|
||||||
Deposits | ||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Realized and unrealized losses (gains) |
|
|
|
|
||||||||||
Settlements |
(
|
(
|
(
|
(
|
||||||||||
Net transfers |
(
|
(
|
(
|
(
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized losses (gains) | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Nonderivative trading liabilities | ||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Realized and unrealized losses (gains) |
(
|
|
|
(
|
||||||||||
Purchases |
(
|
(
|
(
|
(
|
||||||||||
Sales |
|
|
|
|
||||||||||
Settlements |
|
|
|
|
||||||||||
Net transfers |
|
|
|
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized losses (gains) | $ |
(
|
$ |
|
$ |
|
$ |
(
|
||||||
Securities sold under agreements to repurchase | ||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Realized and unrealized losses (gains) |
|
(
|
|
(
|
||||||||||
Issuances |
|
|
|
|
||||||||||
Net transfers |
|
|
(
|
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized losses (gains) | $ |
|
$ |
(
|
$ |
|
$ |
(
|
June 2021 Form 10-Q |
44
|
Notes to Consolidated Financial Statements
(Unaudited) |
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Other secured financings | ||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Realized and unrealized losses (gains) |
|
|
|
(
|
||||||||||
Issuances |
|
|
|
|
||||||||||
Settlements |
(
|
(
|
(
|
(
|
||||||||||
Net transfers |
(
|
(
|
(
|
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized losses (gains) | $ |
|
$ |
|
$ |
|
$ |
(
|
||||||
Borrowings | ||||||||||||||
Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Realized and unrealized losses (gains) |
|
|
|
(
|
||||||||||
Issuances |
|
|
|
|
||||||||||
Settlements |
(
|
(
|
(
|
(
|
||||||||||
Net transfers
2
|
(
|
(
|
(
|
(
|
||||||||||
Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Unrealized losses (gains) | $ |
|
$ |
|
$ |
|
$ |
(
|
||||||
Portion of Unrealized losses (gains) recorded in OCI—Change in net DVA |
(
|
|
(
|
(
|
Balance / Range (Average
1
)
|
||||||||
$ in millions, except inputs | At June 30, 2021 | At December 31, 2020 | ||||||
Assets at Fair Value on a Recurring Basis | ||||||||
Other sovereign government obligations | $ |
|
$ |
|
||||
Comparable pricing: | ||||||||
Bond price |
|
|
||||||
MABS | $ |
|
$ |
|
||||
Comparable pricing: | ||||||||
Bond price |
|
|
||||||
Loans and lending
commitments |
$ |
|
$ |
|
||||
Margin loan model: | ||||||||
Margin loan rate |
|
|
||||||
Comparable pricing: | ||||||||
Loan price |
|
|
||||||
Corporate and
other debt |
$ |
|
$ |
|
||||
Comparable pricing: | ||||||||
Bond price |
|
|
||||||
Discounted cash flow: | ||||||||
Recovery rate |
|
|
||||||
Option model: | ||||||||
Equity volatility |
|
|
||||||
Corporate equities | $ |
|
$ |
|
||||
Comparable pricing: | ||||||||
Equity price |
|
|
||||||
Investments | $ |
|
$ |
|
||||
Discounted cash flow: | ||||||||
WACC |
|
|
||||||
Exit multiple |
|
|
||||||
Market approach: | ||||||||
EBITDA multiple |
|
|
||||||
Comparable pricing: | ||||||||
Equity price |
|
|
||||||
Investment securities —AFS | $ |
|
$ |
|
||||
Comparable pricing: | ||||||||
Bond price | N/A |
|
||||||
Net derivative and other contracts: | ||||||||
Interest rate | $ |
|
$ |
|
||||
Option model: | ||||||||
IR volatility skew |
|
|
||||||
IR curve correlation |
|
|
||||||
Bond volatility |
|
|
||||||
Inflation volatility |
|
|
||||||
IR curve |
|
|
45
|
June 2021 Form 10-Q |
Notes to Consolidated Financial Statements
(Unaudited) |
|
Balance / Range (Average
1
)
|
||||||||
$ in millions, except inputs | At June 30, 2021 | At December 31, 2020 | ||||||
Credit | $ |
(
|
$ |
|
||||
Credit default swap model: | ||||||||
Cash-synthetic basis |
|
|
||||||
Bond price |
|
|
||||||
Credit spread |
|
|
||||||
Funding spread |
|
|
||||||
Correlation model: | ||||||||
Credit correlation |
|
|
||||||
Foreign exchange
2
|
$ |
|
$ |
|
||||
Option model: | ||||||||
IR - FX correlation |
|
|
||||||
IR volatility skew |
|
|
||||||
IR curve |
|
|
||||||
Foreign exchange volatility skew |
-
|
-
|
||||||
Contingency probability |
|
|
||||||
Equity
2
|
$ |
(
|
$ |
(
|
||||
Option model: | ||||||||
Equity volatility |
|
|
||||||
Equity volatility skew |
-
|
-
|
||||||
Equity correlation |
|
|
||||||
FX correlation |
-
|
-
|
||||||
IR correlation |
|
-
|
||||||
Commodity and other | $ |
|
$ |
|
||||
Option model: | ||||||||
Forward power price |
$-
|
$-
|
||||||
Commodity volatility |
|
|
||||||
Cross-commodity correlation |
|
|
||||||
Liabilities Measured at Fair Value on a Recurring Basis | ||||||||
Deposits | $ |
|
$ |
|
||||
Option model: | ||||||||
Equity volatility |
|
|
||||||
Nonderivative trading liabilities
—Corporate equities |
$ |
|
$ |
|
||||
Comparable pricing: | ||||||||
Equity price |
|
|
||||||
Securities sold under agreements to repurchase | $ |
|
$ |
|
||||
Discounted cash flow: | ||||||||
Funding spread |
|
|
||||||
Other secured financings | $ |
|
$ |
|
||||
Discounted cash flow: | ||||||||
Funding spread | N/A |
|
||||||
Comparable pricing: | ||||||||
Loan price |
|
|
||||||
Balance / Range (Average
1
)
|
||||||||
$ in millions, except inputs | At June 30, 2021 | At December 31, 2020 | ||||||
Borrowings | $ |
|
$ |
|
||||
Option model: | ||||||||
Equity volatility |
|
|
||||||
Equity volatility skew |
-
|
-
|
||||||
Equity correlation |
|
|
||||||
Equity - FX correlation |
-
|
-
|
||||||
IR FX Correlation |
-
|
-
|
||||||
Discounted cash flow: | ||||||||
Recovery rate |
|
N/M | ||||||
Nonrecurring Fair Value Measurement | ||||||||
Loans | $ |
|
$ |
|
||||
Corporate loan model: | ||||||||
Credit spread |
|
|
||||||
Comparable pricing: | ||||||||
Loan price |
|
N/M | ||||||
Warehouse model: | ||||||||
Credit spread |
|
|
||||||
Comparable pricing: | ||||||||
Bond Price | N/A |
|
June 2021 Form 10-Q |
46
|
Notes to Consolidated Financial Statements
(Unaudited) |
|
|
At June 30, 2021 | At December 31, 2020 | ||||||||||||
$ in millions
|
Carrying
Value
|
Commitment
|
Carrying
Value
|
Commitment
|
||||||||||
Private equity | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Real estate |
|
|
|
|
||||||||||
Hedge
1
|
|
|
|
|
||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
|
Carrying Value at June 30, 2021 | |||||||
$ in millions
|
Private Equity
|
Real Estate
|
||||||
Less than 5 years | $ |
|
$ |
|
||||
5-10 years |
|
|
||||||
Over 10 years |
|
|
||||||
Total | $ |
|
$ |
|
|
At June 30, 2021 | ||||||||||
|
Fair Value
|
||||||||||
$ in millions | Level 2 |
Level 3
1
|
Total | ||||||||
Assets | |||||||||||
Loans | $ |
|
$ |
|
$ |
|
|||||
Other assets—Other investments |
|
|
|
||||||||
Total | $ |
|
$ |
|
$ |
|
|||||
Liabilities | |||||||||||
Other liabilities and accrued expenses—Lending commitments | $ |
|
$ |
|
$ |
|
|||||
Total | $ |
|
$ |
|
$ |
|
|
At December 31, 2020 | ||||||||||
|
Fair Value
|
||||||||||
$ in millions | Level 2 |
Level 3
1
|
Total | ||||||||
Assets | |||||||||||
Loans | $ |
|
$ |
|
$ |
|
|||||
Other assets—Other investments | $ |
|
$ |
|
$ |
|
|||||
Other assets—ROU assets |
|
|
|
||||||||
Total | $ |
|
$ |
|
$ |
|
|||||
Liabilities | |||||||||||
Other liabilities and accrued expenses—Lending commitments | $ |
|
$ |
|
$ |
|
|||||
Total | $ |
|
$ |
|
$ |
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Assets | ||||||||||||||
Loans
2
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
||||||
Goodwill |
|
|
(
|
|
||||||||||
Intangibles |
(
|
|
(
|
|
||||||||||
Other assets—Other investments
3
|
(
|
(
|
(
|
(
|
||||||||||
Other assets—Premises, equipment and software
4
|
(
|
(
|
(
|
(
|
||||||||||
Total | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
||||||
Liabilities | ||||||||||||||
Other liabilities and accrued expenses—Lending commitments
2
|
$ |
|
$ |
|
$ |
|
$ |
(
|
||||||
Total | $ |
|
$ |
|
$ |
|
$ |
(
|
47
|
June 2021 Form 10-Q |
Notes to Consolidated Financial Statements
(Unaudited) |
|
At June 30, 2021 | |||||||||||||||||
Carrying
Value |
Fair Value | ||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Investment securities—HTM |
|
|
|
|
|
||||||||||||
Securities purchased under agreements to resell |
|
|
|
|
|
||||||||||||
Securities borrowed |
|
|
|
|
|
||||||||||||
Customer and other receivables |
|
|
|
|
|
||||||||||||
Loans
1
|
|
|
|
|
|
||||||||||||
Other assets |
|
|
|
|
|
||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Securities sold under agreements to repurchase |
|
|
|
|
|
||||||||||||
Securities loaned |
|
|
|
|
|
||||||||||||
Other secured financings |
|
|
|
|
|
||||||||||||
Customer and other payables |
|
|
|
|
|
||||||||||||
Borrowings |
|
|
|
|
|
||||||||||||
Commitment
Amount |
|||||||||||||||||
Lending commitments
2
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
At December 31, 2020 | |||||||||||||||||
Carrying
Value |
Fair Value | ||||||||||||||||
$ in millions | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Investment securities—HTM |
|
|
|
|
|
||||||||||||
Securities purchased under agreements to resell |
|
|
|
|
|
||||||||||||
Securities borrowed |
|
|
|
|
|
||||||||||||
Customer and other receivables |
|
|
|
|
|
||||||||||||
Loans
1
|
|
|
|
|
|
||||||||||||
Other assets |
|
|
|
|
|
||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Securities sold under agreements to repurchase |
|
|
|
|
|
||||||||||||
Securities loaned |
|
|
|
|
|
||||||||||||
Other secured financings |
|
|
|
|
|
||||||||||||
Customer and other payables |
|
|
|
|
|
||||||||||||
Borrowings |
|
|
|
|
|
||||||||||||
Commitment
Amount |
|||||||||||||||||
Lending commitments
2
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Business Unit Responsible for Risk Management | ||||||||
Equity | $ |
|
$ |
|
||||
Interest rates |
|
|
||||||
Commodities |
|
|
||||||
Credit |
|
|
||||||
Foreign exchange |
|
|
||||||
Total | $ |
|
$ |
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||
$ in millions
|
2021 | 2020 | 2021 | 2020 | ||||||||||
Trading revenues | $ |
(
|
$ |
(
|
$ |
(
|
$ |
|
||||||
Interest expense |
|
|
|
|
||||||||||
Net revenues
1
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
Three Months Ended June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
$ in millions |
Trading
Revenues |
OCI |
Trading
Revenues |
OCI | ||||||||||
Loans and other debt
1
|
$ |
|
$ |
|
$ |
(
|
$ |
|
||||||
Lending commitments |
|
|
(
|
|
||||||||||
Deposits |
|
|
|
(
|
||||||||||
Borrowings |
(
|
|
(
|
(
|
||||||||||
June 2021 Form 10-Q |
48
|
Notes to Consolidated Financial Statements
(Unaudited) |
|
Six Months Ended June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
$ in millions |
Trading
Revenues |
OCI |
Trading
Revenues |
OCI | ||||||||||
Loans and other debt
1
|
$ |
|
$ |
|
$ |
(
|
$ |
|
||||||
Lending commitments |
|
|
|
|
||||||||||
Deposits |
|
|
|
|
||||||||||
Borrowings |
(
|
|
(
|
|
||||||||||
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Cumulative pre-tax DVA gain (loss) recognized in AOCI | $ |
(
|
$ |
(
|
$ in millions |
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Loans and other debt
2
|
$ |
|
$ |
|
||||
Nonaccrual loans
2
|
|
|
||||||
Borrowings
3
|
(
|
(
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Nonaccrual loans | $ |
|
$ |
|
||||
Nonaccrual loans 90 or more days past due
|
$ |
|
$ |
|
|
Assets at June 30, 2021 | |||||||||||||
$ in millions
|
Bilateral
OTC
|
Cleared
OTC
|
Exchange-
Traded
|
Total
|
||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Foreign exchange |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit |
|
|
|
|
||||||||||
Other derivatives | ||||||||||||||
Interest rate |
|
|
|
|
||||||||||
Credit |
|
|
|
|
||||||||||
Foreign exchange |
|
|
|
|
||||||||||
Equity |
|
|
|
|
||||||||||
Commodity and other |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Total gross derivatives | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Amounts offset | ||||||||||||||
Counterparty netting |
(
|
(
|
(
|
(
|
||||||||||
Cash collateral netting |
(
|
(
|
|
(
|
||||||||||
Total in Trading assets | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Amounts not offset
1
|
||||||||||||||
Financial instruments collateral |
(
|
|
|
(
|
||||||||||
Net amounts | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ |
|
||||||||||||
|
Liabilities at June 30, 2021 | |||||||||||||
$ in millions
|
Bilateral
OTC
|
Cleared
OTC
|
Exchange-
Traded
|
Total
|
||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Foreign exchange |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit |
|
|
|
|
||||||||||
Other derivatives | ||||||||||||||
Interest rate |
|
|
|
|
||||||||||
Credit |
|
|
|
|
||||||||||
Foreign exchange |
|
|
|
|
||||||||||
Equity |
|
|
|
|
||||||||||
Commodity and other |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Total gross derivatives | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Amounts offset | ||||||||||||||
Counterparty netting |
(
|
(
|
(
|
(
|
||||||||||
Cash collateral netting |
(
|
(
|
|
(
|
||||||||||
Total in Trading liabilities | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Amounts not offset
1
|
||||||||||||||
Financial instruments collateral |
(
|
|
(
|
(
|
||||||||||
Net amounts | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable |
|
|||||||||||||
June 2021 Form 10-Q |
49
|
Notes to Consolidated Financial Statements
(Unaudited) |
|
Assets at December 31, 2020 | ||||||||||||||
$ in millions
|
Bilateral
OTC
|
Cleared
OTC
|
Exchange-
Traded
|
Total
|
||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Foreign exchange |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit
1
|
|
|
|
|
||||||||||
Other derivatives | ||||||||||||||
Interest rate |
|
|
|
|
||||||||||
Credit
1
|
|
|
|
|
||||||||||
Foreign exchange |
|
|
|
|
||||||||||
Equity |
|
|
|
|
||||||||||
Commodity and other |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Total gross derivatives | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Amounts offset | ||||||||||||||
Counterparty netting |
(
|
(
|
(
|
(
|
||||||||||
Cash collateral netting |
(
|
(
|
|
(
|
||||||||||
Total in Trading assets | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Amounts not offset
2
|
||||||||||||||
Financial instruments collateral |
(
|
|
|
(
|
||||||||||
Other cash collateral |
(
|
|
|
(
|
||||||||||
Net amounts | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ |
|
||||||||||||
|
Liabilities at December 31, 2020 | |||||||||||||
$ in millions
|
Bilateral
OTC
|
Cleared
OTC
|
Exchange-
Traded
|
Total
|
||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Foreign exchange |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit
1
|
|
|
|
|
||||||||||
Other derivatives | ||||||||||||||
Interest rate |
|
|
|
|
||||||||||
Credit
1
|
|
|
|
|
||||||||||
Foreign exchange |
|
|
|
|
||||||||||
Equity |
|
|
|
|
||||||||||
Commodity and other |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Total gross derivatives | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Amounts offset | ||||||||||||||
Counterparty netting |
(
|
(
|
(
|
(
|
||||||||||
Cash collateral netting |
(
|
(
|
|
(
|
||||||||||
Total in Trading liabilities | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Amounts not offset
2
|
||||||||||||||
Financial instruments collateral |
(
|
|
(
|
(
|
||||||||||
Other cash collateral |
(
|
(
|
|
(
|
||||||||||
Net amounts | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Net amounts for which master netting or collateral agreements are not in place or may not be legally enforceable | $ |
|
||||||||||||
|
Assets at June 30, 2021 | |||||||||||||
$ in billions
|
Bilateral
OTC
|
Cleared
OTC
|
Exchange-
Traded
|
Total
|
||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Foreign exchange |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit |
|
|
|
|
||||||||||
Other derivatives | ||||||||||||||
Interest rate |
|
|
|
|
||||||||||
Credit |
|
|
|
|
||||||||||
Foreign exchange |
|
|
|
|
||||||||||
Equity |
|
|
|
|
||||||||||
Commodity and other |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Total gross derivatives | $ |
|
$ |
|
$ |
|
$ |
|
||||||
|
Liabilities at June 30, 2021 | |||||||||||||
$ in billions
|
Bilateral
OTC
|
Cleared
OTC
|
Exchange-
Traded
|
Total
|
||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Foreign exchange |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit |
|
|
|
|
||||||||||
Other derivatives | ||||||||||||||
Interest rate |
|
|
|
|
||||||||||
Credit |
|
|
|
|
||||||||||
Foreign exchange |
|
|
|
|
||||||||||
Equity |
|
|
|
|
||||||||||
Commodity and other |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Total gross derivatives | $ |
|
$ |
|
$ |
|
$ |
|
||||||
|
Assets at December 31, 2020 | |||||||||||||
$ in billions
|
Bilateral
OTC
|
Cleared
OTC
|
Exchange-
Traded
|
Total
|
||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Foreign exchange |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit
1
|
|
|
|
|
||||||||||
Other derivatives | ||||||||||||||
Interest rate |
|
|
|
|
||||||||||
Credit
1
|
|
|
|
|
||||||||||
Foreign exchange |
|
|
|
|
||||||||||
Equity |
|
|
|
|
||||||||||
Commodity and other |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Total gross derivatives | $ |
|
$ |
|
$ |
|
$ |
|
||||||
June 2021 Form 10-Q |
50
|
Notes to Consolidated Financial Statements
(Unaudited) |
|
|
Liabilities at December 31, 2020 | |||||||||||||
$ in billions
|
Bilateral
OTC
|
Cleared
OTC
|
Exchange-
Traded
|
Total
|
||||||||||
Designated as accounting hedges | ||||||||||||||
Interest rate | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Foreign exchange |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Not designated as accounting hedges | ||||||||||||||
Economic loan hedges | ||||||||||||||
Credit
1
|
|
|
|
|
||||||||||
Other derivatives | ||||||||||||||
Interest rate |
|
|
|
|
||||||||||
Credit
1
|
|
|
|
|
||||||||||
Foreign exchange |
|
|
|
|
||||||||||
Equity |
|
|
|
|
||||||||||
Commodity and other |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Total gross derivatives | $ |
|
$ |
|
$ |
|
$ |
|
||||||
|
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | |||||||||||||
$ in millions
|
2021 | 2020 | 2021 | 2020 | ||||||||||
Fair value hedges—Recognized in Interest income | ||||||||||||||
Interest rate contracts | $ |
(
|
$ |
(
|
$ |
|
$ |
(
|
||||||
Investment Securities—AFS |
|
|
(
|
|
||||||||||
Fair value hedges—Recognized in Interest expense | ||||||||||||||
Interest rate contracts | $ |
|
$ |
|
$ |
(
|
$ |
|
||||||
Deposits |
|
|
|
(
|
||||||||||
Borrowings |
(
|
(
|
|
(
|
||||||||||
Net investment hedges—Foreign exchange contracts | ||||||||||||||
Recognized in OCI
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
||||||
Forward points excluded from hedge effectiveness testing—Recognized in Interest income |
(
|
(
|
(
|
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Investment Securities—AFS
|
||||||||
Amortized cost basis currently or previously hedged | $ |
|
$ |
|
||||
Basis adjustments included in amortized cost
1
|
$ |
(
|
$ |
(
|
||||
Deposits | ||||||||
Carrying amount
currently or previously hedged
|
$ |
|
$ |
|
||||
Basis adjustments included in carrying amount
1
|
$ |
|
$ |
|
||||
Borrowings
|
||||||||
Carrying amount currently or previously hedged | $ |
|
$ |
|
||||
Basis adjustments included in carrying amount
—
Outstanding hedges
|
$ |
|
$ |
|
||||
Basis adjustments included in carrying amount
—
Terminated hedges
|
$ |
(
|
$ |
(
|
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Recognized in Other revenues | ||||||||||||||
Credit contracts
1
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ in millions |
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Net derivative liabilities with credit risk-related contingent features | $ |
|
$ |
|
||||
Collateral posted |
|
|
$ in millions
|
At
June 30, 2021 |
||||
One-notch downgrade | $ |
|
|||
Two-notch downgrade |
|
||||
Bilateral downgrade agreements included in the amounts above
1
|
$ |
|
51
|
June 2021 Form 10-Q |
Notes to Consolidated Financial Statements
(Unaudited) |
|
|
Years to Maturity at June 30, 2021 | ||||||||||||||||
$ in billions
|
< 1
|
1-3
|
3-5
|
Over 5
|
Total
|
||||||||||||
Single-name CDS | |||||||||||||||||
Investment grade | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Non-investment grade |
|
|
|
|
|
||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Index and basket CDS | |||||||||||||||||
Investment grade | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Non-investment grade |
|
|
|
|
|
||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Total CDS sold | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Other credit contracts |
|
|
|
|
|
||||||||||||
Total credit protection sold | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
CDS protection sold with identical protection purchased | $ |
|
|
Years to Maturity at December 31, 2020 | ||||||||||||||||
$ in billions
|
< 1
|
1-3
|
3-5
|
Over 5
|
Total
|
||||||||||||
Single-name CDS | |||||||||||||||||
Investment grade | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Non-investment grade |
|
|
|
|
|
||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Index and basket CDS | |||||||||||||||||
Investment grade | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Non-investment grade |
|
|
|
|
|
||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Total CDS sold | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Other credit contracts |
|
|
|
|
|
||||||||||||
Total credit protection sold | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
CDS protection sold with identical protection purchased | $ |
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Single-name CDS | ||||||||
Investment grade | $ |
|
$ |
|
||||
Non-investment grade |
|
(
|
||||||
Total | $ |
|
$ |
|
||||
Index and basket CDS | ||||||||
Investment grade | $ |
|
$ |
|
||||
Non-investment grade |
(
|
(
|
||||||
Total | $ |
|
$ |
|
||||
Total CDS sold | $ |
|
$ |
|
||||
Other credit contracts |
(
|
(
|
||||||
Total credit protection sold | $ |
|
$ |
|
Notional | ||||||||
$ in billions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Single name | $ |
|
$ |
|
||||
Index and basket |
|
|
||||||
Tranched index and basket |
|
|
||||||
Total
|
$ |
|
$ |
|
Fair Value Asset (Liability) | ||||||||
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Single name | $ |
(
|
$ |
(
|
||||
Index and basket |
(
|
(
|
||||||
Tranched index and basket |
(
|
(
|
||||||
Total | $ |
(
|
$ |
(
|
|
At June 30, 2021 | |||||||||||||
$ in millions |
Amortized
Cost
1
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||
AFS securities | ||||||||||||||
U.S. Treasury securities | $ |
|
$ |
|
$ |
|
$ |
|
||||||
U.S. agency securities
2
|
|
|
|
|
||||||||||
Agency CMBS |
|
|
|
|
||||||||||
State and municipal securities |
|
|
|
|
||||||||||
FFELP student loan ABS
3
|
|
|
|
|
||||||||||
Total AFS securities |
|
|
|
|
||||||||||
HTM securities | ||||||||||||||
U.S. Treasury securities |
|
|
|
|
||||||||||
U.S. agency securities
2
|
|
|
|
|
||||||||||
Agency CMBS |
|
|
|
|
||||||||||
Non-agency CMBS |
|
|
|
|
||||||||||
Total HTM securities |
|
|
|
|
||||||||||
Total investment securities | $ |
|
$ |
|
$ |
|
$ |
|
June 2021 Form 10-Q |
52
|
Notes to Consolidated Financial Statements
(Unaudited) |
|
|
At December 31, 2020 | |||||||||||||
$ in millions |
Amortized
Cost
1
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||
AFS securities | ||||||||||||||
U.S. Treasury securities | $ |
|
$ |
|
$ |
|
$ |
|
||||||
U.S. agency securities
2
|
|
|
|
|
||||||||||
Agency CMBS |
|
|
|
|
||||||||||
Corporate bonds |
|
|
|
|
||||||||||
State and municipal securities |
|
|
|
|
||||||||||
FFELP student loan ABS
3
|
|
|
|
|
||||||||||
Other ABS |
|
|
|
|
||||||||||
Total AFS securities |
|
|
|
|
||||||||||
HTM securities | ||||||||||||||
U.S. Treasury securities |
|
|
|
|
||||||||||
U.S. agency securities
2
|
|
|
|
|
||||||||||
Agency CMBS |
|
|
|
|
||||||||||
Non-agency CMBS |
|
|
|
|
||||||||||
Total HTM securities |
|
|
|
|
||||||||||
Total investment securities | $ |
|
$ |
|
$ |
|
$ |
|
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||||||||
$ in millions |
Fair Value
|
Gross
Unrealized
Losses
|
Fair Value
|
Gross
Unrealized
Losses
|
||||||||||
U.S. Treasury securities | ||||||||||||||
Less than 12 months | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Total |
|
|
|
|
||||||||||
U.S. agency securities | ||||||||||||||
Less than 12 months |
|
|
|
|
||||||||||
12 months or longer |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Agency CMBS | ||||||||||||||
Less than 12 months |
|
|
|
|
||||||||||
12 months or longer |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Corporate bonds | ||||||||||||||
12 months or longer |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
State and municipal securities | ||||||||||||||
Less than 12 months |
|
|
|
|
||||||||||
12 months or longer |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
FFELP student loan ABS | ||||||||||||||
Less than 12 months |
|
|
|
|
||||||||||
12 months or longer |
|
|
|
|
||||||||||
Total |
|
|
|
|
||||||||||
Total AFS securities in an unrealized loss position
|
||||||||||||||
Less than 12 months |
|
|
|
|
||||||||||
12 months or longer |
|
|
|
|
||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
|
At June 30, 2021 | ||||||||||
$ in millions |
Amortized
Cost 1 |
Fair
Value |
Annualized
Average Yield |
||||||||
AFS securities | |||||||||||
U.S. Treasury securities: | |||||||||||
Due within 1 year | $ |
|
$ |
|
|
% | |||||
After 1 year through 5 years |
|
|
|
% | |||||||
After 5 years through 10 years |
|
|
|
% | |||||||
Total |
|
|
|||||||||
U.S. agency securities: | |||||||||||
Due within 1 year |
|
|
|
% | |||||||
After 1 year through 5 years |
|
|
|
% | |||||||
After 5 years through 10 years |
|
|
|
% | |||||||
After 10 years |
|
|
|
% | |||||||
Total |
|
|
|||||||||
Agency CMBS: | |||||||||||
Due within 1 year |
|
|
|
% | |||||||
After 1 year through 5 years |
|
|
|
% | |||||||
After 5 years through 10 years |
|
|
|
% | |||||||
After 10 years |
|
|
|
% | |||||||
Total |
|
|
|||||||||
State and municipal securities: | |||||||||||
Due within 1 year |
|
|
|
% | |||||||
After 1 year through 5 years |
|
|
|
% | |||||||
After 5 years through 10 years |
|
|
|
% | |||||||
After 10 Years |
|
|
|
% | |||||||
Total |
|
|
|||||||||
FFELP student loan ABS: | |||||||||||
Due within 1 year |
|
|
|
% | |||||||
After 1 year through 5 years |
|
|
|
% | |||||||
After 5 years through 10 years |
|
|
|
% | |||||||
After 10 years |
|
|
|
% | |||||||
Total |
|
|
|||||||||
Total AFS securities |
|
|
|
% | |||||||
53
|
June 2021 Form 10-Q |
Notes to Consolidated Financial Statements
(Unaudited) |
|
|
At June 30, 2021 | ||||||||||
$ in millions |
Amortized
Cost 1 |
Fair
Value |
Annualized
Average Yield |
||||||||
HTM securities | |||||||||||
U.S. Treasury securities: | |||||||||||
Due within 1 year |
|
|
|
% | |||||||
After 1 year through 5 years |
|
|
|
% | |||||||
After 5 years through 10 years |
|
|
|
% | |||||||
After 10 years |
|
|
|
% | |||||||
Total |
|
|
|||||||||
U.S. agency securities: | |||||||||||
After 5 years through 10 years |
|
|
|
% | |||||||
After 10 years |
|
|
|
% | |||||||
Total |
|
|
|||||||||
Agency CMBS: | |||||||||||
Due within 1 year |
|
|
|
% | |||||||
After 1 year through 5 years |
|
|
|
% | |||||||
After 5 years through 10 years |
|
|
|
% | |||||||
After 10 years |
|
|
|
% | |||||||
Total |
|
|
|||||||||
Non-agency CMBS: | |||||||||||
Due within 1 year |
|
|
|
% | |||||||
After 1 year through 5 years |
|
|
|
% | |||||||
After 5 years through 10 years |
|
|
|
% | |||||||
After 10 years |
|
|
|
% | |||||||
Total |
|
|
|||||||||
Total HTM securities |
|
|
|
% | |||||||
Total investment securities
|
$ |
|
$ |
|
|
% |
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||
$ in millions
|
2021 | 2020 | 2021 | 2020 | ||||||||||
Gross realized gains | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Gross realized (losses) |
(
|
(
|
(
|
(
|
||||||||||
Total
1
|
$ |
|
$ |
|
$ |
|
$ |
|
At June 30, 2021 | |||||||||||||||||
$ in millions
|
Gross Amounts | Amounts Offset | Balance Sheet Net Amounts |
Amounts Not Offset
1
|
Net Amounts | ||||||||||||
Assets | |||||||||||||||||
Securities purchased under agreements to resell | $ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
|||||||
Securities borrowed |
|
(
|
|
(
|
|
||||||||||||
Liabilities | |||||||||||||||||
Securities sold under agreements to repurchase | $ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
|||||||
Securities loaned |
|
(
|
|
(
|
|
||||||||||||
Net amounts for which master netting agreements are not in place or may not be legally enforceable | |||||||||||||||||
Securities purchased under agreements to resell | $ |
|
|||||||||||||||
Securities borrowed |
|
||||||||||||||||
Securities sold under agreements to repurchase |
|
||||||||||||||||
Securities loaned |
|
At December 31, 2020 | |||||||||||||||||
$ in millions | Gross Amounts | Amounts Offset | Balance Sheet Net Amounts |
Amounts Not Offset
1
|
Net Amounts | ||||||||||||
Assets | |||||||||||||||||
Securities purchased under agreements to resell | $ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
|||||||
Securities borrowed |
|
(
|
|
(
|
|
||||||||||||
Liabilities | |||||||||||||||||
Securities sold under agreements to repurchase | $ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
|||||||
Securities loaned |
|
(
|
|
(
|
|
||||||||||||
Net amounts for which master netting agreements are not in place or may not be legally enforceable | |||||||||||||||||
Securities purchased under agreements to resell | $ |
|
|||||||||||||||
Securities borrowed |
|
||||||||||||||||
Securities sold under agreements to repurchase |
|
||||||||||||||||
Securities loaned |
|
|
At June 30, 2021 | ||||||||||||||||
$ in millions
|
Overnight and Open | Less than 30 Days | 30-90 Days | Over 90 Days |
Total
|
||||||||||||
Securities sold under agreements to repurchase | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Securities loaned |
|
|
|
|
|
||||||||||||
Total included in the offsetting disclosure | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Trading liabilities—
Obligation to return securities received as collateral |
|
|
|
|
|
||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
June 2021 Form 10-Q |
54
|
Notes to Consolidated Financial Statements
(Unaudited) |
|
|
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 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Securities loaned |
|
|
|
|
|
||||||||||||
Total included in the offsetting disclosure | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Trading liabilities—
Obligation to return securities received as collateral |
|
|
|
|
|
||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Securities sold under agreements to repurchase | ||||||||
U.S. Treasury and agency securities | $ |
|
$ |
|
||||
Other sovereign government obligations |
|
|
||||||
Corporate equities |
|
|
||||||
Other |
|
|
||||||
Total | $ |
|
$ |
|
||||
Securities loaned | ||||||||
Other sovereign government obligations | $ |
|
$ |
|
||||
Corporate equities |
|
|
||||||
Other |
|
|
||||||
Total | $ |
|
$ |
|
||||
Total included in the offsetting disclosure | $ |
|
$ |
|
||||
Trading liabilities—Obligation to return securities received as collateral | ||||||||
Corporate equities | $ |
|
$ |
|
||||
Other |
|
|
||||||
Total
|
$ |
|
$ |
|
||||
Total | $ |
|
$ |
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
|||||||||
Trading assets | $ |
|
$ |
|
|||||||
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Collateral received with right to sell or repledge | $ |
|
$ |
|
||||
Collateral that was sold or repledged
1
|
|
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Segregated securities
1
|
$ |
|
$ |
|
$ in millions |
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Margin and other lending | $ |
|
$ |
|
55
|
June 2021 Form 10-Q |
Notes to Consolidated Financial Statements
(Unaudited) |
|
|
At June 30, 2021 | ||||||||||
$ in millions
|
Loans Held
for Investment
|
Loans Held
for Sale
|
Total Loans
|
||||||||
Corporate | $ |
|
$ |
|
$ |
|
|||||
Secured lending facilities
|
|
|
|
||||||||
Commercial real estate
|
|
|
|
||||||||
Residential real estate
|
|
|
|
||||||||
Securities-based lending and Other loans |
|
|
|
||||||||
Total loans
|
|
|
|
||||||||
ACL |
(
|
(
|
|||||||||
Total loans, net | $ |
|
$ |
|
$ |
|
|||||
Fixed rate loans, net | $ |
|
|||||||||
Floating or adjustable rate loans, net |
|
||||||||||
Loans to non-U.S. borrowers, net |
|
|
At December 31, 2020 | ||||||||||
$ in millions
|
Loans Held
for Investment
|
Loans Held
for Sale
|
Total Loans
|
||||||||
Corporate | $ |
|
$ |
|
$ |
|
|||||
Secured lending facilities
|
|
|
|
||||||||
Commercial real estate
|
|
|
|
||||||||
Residential real estate |
|
|
|
||||||||
Securities-based lending and Other loans |
|
|
|
||||||||
Total loans |
|
|
|
||||||||
ACL |
(
|
(
|
|||||||||
Total loans, net | $ |
|
$ |
|
$ |
|
|||||
Fixed rate loans, net | $ |
|
|||||||||
Floating or adjustable rate loans, net |
|
||||||||||
Loans to non-U.S. borrowers, net |
|
At June 30, 2021 | At December 31, 2020 | |||||||||||||||||||
Corporate | ||||||||||||||||||||
$ in millions
|
IG | NIG | Total | IG | NIG | Total | ||||||||||||||
Revolving
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
2021 |
|
|
|
|||||||||||||||||
2020 |
|
|
|
|
|
|
||||||||||||||
2019 |
|
|
|
|
|
|
||||||||||||||
2018 |
|
|
|
|
|
|
||||||||||||||
2017 |
|
|
|
|
|
|
||||||||||||||
Prior
|
|
|
|
|
|
|
||||||||||||||
Total
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
At June 30, 2021 | At December 31, 2020 | |||||||||||||||||||
Secured lending facilities | ||||||||||||||||||||
$ in millions
|
IG | NIG | Total | IG | NIG | Total | ||||||||||||||
Revolving
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
2021 |
|
|
|
|||||||||||||||||
2020 |
|
|
|
|
|
|
||||||||||||||
2019 |
|
|
|
|
|
|
||||||||||||||
2018 |
|
|
|
|
|
|
||||||||||||||
2017 |
|
|
|
|
|
|
||||||||||||||
Prior
|
|
|
|
|
|
|
||||||||||||||
Total
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
At June 30, 2021 | At December 31, 2020 | |||||||||||||||||||
Commercial real estate | ||||||||||||||||||||
$ in millions
|
IG | NIG | Total | IG | NIG | Total | ||||||||||||||
2021 | $ |
|
$ |
|
$ |
|
||||||||||||||
2020 |
|
|
|
$ |
|
$ |
|
$ |
|
|||||||||||
2019 |
|
|
|
|
|
|
||||||||||||||
2018 |
|
|
|
|
|
|
||||||||||||||
2017 |
|
|
|
|
|
|
||||||||||||||
Prior
|
|
|
|
|
|
|
||||||||||||||
Total
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
At June 30, 2021 | ||||||||||||||||||||||||||
Residential real estate
|
||||||||||||||||||||||||||
by FICO Scores
|
by LTV Ratio
|
Total
|
||||||||||||||||||||||||
$ in millions
|
≥ 740
|
680-739
|
≤ 679
|
≤ 80%
|
> 80%
|
|||||||||||||||||||||
Revolving | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
2021 |
|
|
|
|
|
|
||||||||||||||||||||
2020 |
|
|
|
|
|
|
||||||||||||||||||||
2019 |
|
|
|
|
|
|
||||||||||||||||||||
2018 |
|
|
|
|
|
|
||||||||||||||||||||
2017 |
|
|
|
|
|
|
||||||||||||||||||||
Prior
|
|
|
|
|
|
|
||||||||||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
At December 31, 2020 | ||||||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||
by FICO Scores | by LTV Ratio | Total | ||||||||||||||||||||||||
$ in millions | ≥ 740 | 680-739 | ≤ 679 | ≤ 80% | > 80% | |||||||||||||||||||||
Revolving | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
2020 |
|
|
|
|
|
|
||||||||||||||||||||
2019 |
|
|
|
|
|
|
||||||||||||||||||||
2018 |
|
|
|
|
|
|
||||||||||||||||||||
2017 |
|
|
|
|
|
|
||||||||||||||||||||
2016 |
|
|
|
|
|
|
||||||||||||||||||||
Prior |
|
|
|
|
|
|
||||||||||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
At June 30, 2021 | ||||||||||||||
Securities-based lending
1
|
Other
2
|
|||||||||||||
$ in millions
|
Investment Grade
|
Non-Investment Grade
|
Total
|
|||||||||||
Revolving | $ |
|
$ |
|
$ |
|
$ |
|
||||||
2021 |
|
|
|
|
||||||||||
2020 |
|
|
|
|
||||||||||
2019 |
|
|
|
|
||||||||||
2018 |
|
|
|
|
||||||||||
2017 |
|
|
|
|
||||||||||
Prior
|
|
|
|
|
||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
June 2021 Form 10-Q |
56
|
Notes to Consolidated Financial Statements
(Unaudited) |
|
December 31, 2020 | ||||||||||||||
Securities-based lending
1
|
Other
2
|
|||||||||||||
$ in millions
|
Investment Grade
|
Non-Investment Grade
|
Total
|
|||||||||||
Revolving | $ |
|
$ |
|
$ |
|
$ |
|
||||||
2020 |
|
|
|
|
||||||||||
2019 |
|
|
|
|
||||||||||
2018 |
|
|
|
|
||||||||||
2017 |
|
|
|
|
||||||||||
2016 |
|
|
|
|
||||||||||
Prior
|
|
|
|
|
||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
$ in millions
|
At June 30, 2021 | At December 31, 2020 | ||||||
Residential real estate |
|
|
||||||
Securities-based lending and Other loans |
|
|
||||||
Total | $ |
|
$ |
|
$ in millions | At June 30, 2021 | At December 31, 2020 | ||||||
Corporate | $ |
|
$ |
|
||||
Secured lending facilities |
|
|
||||||
Commercial real estate |
|
|
||||||
Residential real estate |
|
|
||||||
Securities-based lending and Other loans |
|
|
||||||
Total
1
|
$ |
|
$ |
|
||||
Nonaccrual loans without an ACL | $ |
|
$ |
|
$ in millions | At June 30, 2021 | At December 31, 2020 | ||||||
Loans, before ACL | $ |
|
$ |
|
||||
Lending commitments |
|
|
||||||
ACL on Loans and Lending commitments |
|
|
$ in millions
|
Corporate |
Secured lending facilities
|
CRE
|
Residential real estate
|
SBL and Other
|
Total
|
||||||||||||||
December 31, 2020 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
Gross charge-offs |
(
|
(
|
(
|
|
|
(
|
||||||||||||||
Provision for credit losses
1
|
(
|
|
|
(
|
|
(
|
||||||||||||||
Other |
(
|
(
|
(
|
|
|
(
|
||||||||||||||
June 30, 2021 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ in millions
|
Corporate |
Secured lending facilities
|
CRE
|
Residential real estate
|
SBL and Other
|
Total
|
||||||||||||||
December 31, 2019 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
Effect of CECL adoption |
(
|
(
|
|
|
(
|
|
||||||||||||||
Gross charge-offs |
(
|
|
|
|
|
(
|
||||||||||||||
Recoveries |
|
|
|
|
|
|
||||||||||||||
Net recoveries (charge-offs) |
(
|
|
|
|
|
(
|
||||||||||||||
Provision for credit losses
1
|
|
|
|
|
|
|
||||||||||||||
Other |
|
|
(
|
|
|
|
||||||||||||||
June 30, 2020 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ in millions
|
Corporate |
Secured lending facilities
|
CRE
|
Residential real estate
|
SBL and Other
|
Total
|
||||||||||||||
December 31, 2020 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
Provision for credit losses
1
|
|
|
|
|
(
|
|
||||||||||||||
Other |
(
|
|
(
|
|
|
(
|
||||||||||||||
June 30, 2021 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ in millions
|
Corporate |
Secured lending facilities
|
CRE
|
Residential real estate
|
SBL and Other
|
Total
|
||||||||||||||
December 31, 2019 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
Effect of CECL adoption |
(
|
(
|
|
|
(
|
(
|
||||||||||||||
Provision for credit losses
1
|
|
|
|
(
|
|
|
||||||||||||||
Other |
(
|
|
(
|
|
|
(
|
||||||||||||||
June 30, 2020 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Three Months Ended
June 30, |
||||||||
$ in millions | 2021 | 2020 | ||||||
Loans | $ |
|
$ |
|
||||
Lending commitments |
|
(
|
57
|
June 2021 Form 10-Q |
Notes to Consolidated Financial Statements
(Unaudited) |
|
$ in millions |
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Currently employed by the Firm
1
|
$ |
|
$ |
|
||||
No longer employed by the Firm
2
|
|
$ |
|
|||||
Employee loans | $ |
|
$ |
|
||||
ACL |
(
|
(
|
||||||
Employee loans, net of ACL | $ |
|
$ |
|
||||
Remaining repayment term, weighted average in years |
|
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Investments | $ |
|
$ |
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||
$ in millions
|
2021 | 2020 | 2021 | 2020 | ||||||||||
Income (loss) | $ |
|
$ |
(
|
$ |
|
$ |
(
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||
$ in millions
|
2021 | 2020 | 2021 | 2020 | ||||||||||
Income (loss) from investment in MUMSS | $ |
|
$ |
(
|
$ |
|
$ |
|
$ in millions |
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Savings and demand deposits | $ |
|
$ |
|
||||
Time deposits |
|
|
||||||
Total | $ |
|
$ |
|
||||
Deposits subject to FDIC insurance | $ |
|
$ |
|
||||
Time deposits that equal or exceed the FDIC insurance limit | $ |
|
$ |
|
$ in millions |
At
June 30, 2021 |
||||
2021 | $ |
|
|||
2022 |
|
||||
2023 |
|
||||
2024 |
|
||||
2025 |
|
||||
Thereafter |
|
||||
Total | $ |
|
$ in millions |
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Original maturities of one year or less | $ |
|
$ |
|
||||
Original maturities greater than one year | ||||||||
Senior | $ |
|
$ |
|
||||
Subordinated |
|
|
||||||
Total | $ |
|
$ |
|
||||
Total borrowings | $ |
|
$ |
|
||||
Weighted average stated maturity, in years
1
|
|
|
June 2021 Form 10-Q |
58
|
Notes to Consolidated Financial Statements
(Unaudited) |
|
$ in millions |
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Original maturities: | ||||||||
One year or less | $ |
|
$ |
|
||||
Greater than one year |
|
|
||||||
Total | $ |
|
$ |
|
||||
Transfers of assets accounted for as secured financings | $ |
|
$ |
|
|
Years to Maturity at June 30, 2021 |
|
|||||||||||||||
$ in millions
|
Less than 1
|
1-3
|
3-5
|
Over 5
|
Total
|
||||||||||||
Lending: | |||||||||||||||||
Corporate
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Secured lending facilities
|
|
|
|
|
|
||||||||||||
Commercial and Residential real estate
|
|
|
|
|
|
||||||||||||
Securities-based lending and Other
|
|
|
|
|
|
||||||||||||
Forward-starting secured financing receivables |
|
|
|
|
|
||||||||||||
Central counterparty |
|
|
|
|
|
||||||||||||
Underwriting |
|
|
|
|
|
||||||||||||
Investment activities |
|
|
|
|
|
||||||||||||
Letters of credit and other financial guarantees |
|
|
|
|
|
||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Lending commitments participated to third parties | $ |
|
|||||||||||||||
Forward-starting secured financing receivables settled within three business days | $ |
|
At June 30, 2021 | |||||||||||||||||||||||
Maximum Potential Payout/Notional of Obligations by Years to Maturity
|
Carrying Amount Asset (Liability) | ||||||||||||||||||||||
$ in millions | Less than 1 | 1-3 | 3-5 | Over 5 | |||||||||||||||||||
Non-credit derivatives
1
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
|||||||||||||
Standby letters of credit and other financial guarantees issued
2
|
|
|
|
|
|
||||||||||||||||||
Market value guarantees |
|
|
|
|
|
||||||||||||||||||
Liquidity facilities |
|
|
|
|
|
||||||||||||||||||
Whole loan sales guarantees |
|
|
|
|
|
||||||||||||||||||
Securitization representations and warranties
3
|
|
|
|
|
(
|
||||||||||||||||||
General partner guarantees |
|
|
|
|
(
|
||||||||||||||||||
Client clearing guarantees |
|
|
|
|
|
59
|
June 2021 Form 10-Q |
Notes to Consolidated Financial Statements
(Unaudited) |
|
June 2021 Form 10-Q |
60
|
Notes to Consolidated Financial Statements
(Unaudited) |
|
|
At June 30, 2021 | At December 31, 2020 | ||||||||||||
$ in millions
|
VIE Assets
|
VIE Liabilities
|
VIE Assets
|
VIE Liabilities | ||||||||||
CLO | $ |
|
$ |
|
$ |
|
$ |
|
||||||
MABS
2
|
|
|
|
|
||||||||||
Other
3
|
|
|
|
|
||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Assets | ||||||||
Cash and cash equivalents | $ |
|
$ |
|
||||
Trading assets at fair value |
|
|
||||||
Securities purchased under agreements to resell |
|
|
||||||
Customer and other receivables |
|
|
||||||
Intangible assets |
|
|
||||||
Other assets |
|
|
||||||
Total | $ |
|
$ |
|
||||
Liabilities | ||||||||
Other secured financings | $ |
|
$ |
|
||||
Other liabilities and accrued expenses |
|
|
||||||
Total | $ |
|
$ |
|
||||
Noncontrolling interests | $ |
|
$ |
|
61
|
June 2021 Form 10-Q |
Notes to Consolidated Financial Statements
(Unaudited) |
|
|
At June 30, 2021 | ||||||||||||||||
$ in millions
|
MABS
1
|
CDO
|
MTOB
|
OSF
|
Other
2
|
||||||||||||
VIE assets (UPB) | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Maximum exposure to loss
3
|
|||||||||||||||||
Debt and equity interests | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Derivative and other contracts |
|
|
|
|
|
||||||||||||
Commitments, guarantees and other |
|
|
|
|
|
||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Carrying value of variable interests—Assets | |||||||||||||||||
Debt and equity interests | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Derivative and other contracts |
|
|
|
|
|
||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Additional VIE assets owned
4
|
$ |
|
|||||||||||||||
Carrying value of variable interests—Liabilities | |||||||||||||||||
Derivative and other contracts | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
|
At December 31, 2020 | ||||||||||||||||
$ in millions
|
MABS
1
|
CDO
|
MTOB
|
OSF
|
Other
2
|
||||||||||||
VIE assets (UPB) | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Maximum exposure to loss
3
|
|||||||||||||||||
Debt and equity interests | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Derivative and other contracts |
|
|
|
|
|
||||||||||||
Commitments, guarantees and other |
|
|
|
|
|
||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Carrying value of variable interests
–
Assets
|
|||||||||||||||||
Debt and equity interests | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Derivative and other contracts |
|
|
|
|
|
||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Additional VIE assets owned
4
|
$ |
|
|||||||||||||||
Carrying value of variable interests—Liabilities | |||||||||||||||||
Derivative and other contracts | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
At June 30, 2021 | At December 31, 2020 | ||||||||||||
$ in millions
|
UPB
|
Debt and
Equity
Interests
|
UPB
|
Debt and
Equity
Interests
|
||||||||||
Residential mortgages | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Commercial mortgages |
|
|
|
|
||||||||||
U.S. agency collateralized mortgage obligations |
|
|
|
|
||||||||||
Other consumer or commercial loans |
|
|
|
|
||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
|
At June 30, 2021 | |||||||||||||
$ in millions
|
RML
|
CML
|
U.S. Agency
CMO
|
CLN and
Other
1
|
||||||||||
SPE assets (UPB)
2
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Retained interests | ||||||||||||||
Investment grade | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Non-investment grade |
|
|
|
|
||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Interests purchased in the secondary market | ||||||||||||||
Investment grade | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Non-investment grade |
|
|
|
|
||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Derivative assets | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Derivative liabilities |
|
|
|
|
|
At December 31, 2020 | |||||||||||||
$ in millions
|
RML
|
CML
|
U.S. Agency
CMO
|
CLN and
Other
1
|
||||||||||
SPE assets (UPB)
2
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Retained interests | ||||||||||||||
Investment grade | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Non-investment grade |
|
|
|
|
||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Interests purchased in the secondary market | ||||||||||||||
Investment grade | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Non-investment grade |
|
|
|
|
||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Derivative assets
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Derivative liabilities |
|
|
|
|
June 2021 Form 10-Q |
62
|
Notes to Consolidated Financial Statements
(Unaudited) |
|
|
Fair Value At June 30, 2021 | ||||||||||
$ in millions
|
Level 2
|
Level 3
|
Total
|
||||||||
Retained interests | |||||||||||
Investment grade | $ |
|
$ |
|
$ |
|
|||||
Non-investment grade |
|
|
|
||||||||
Total | $ |
|
$ |
|
$ |
|
|||||
Interests purchased in the secondary market | |||||||||||
Investment grade | $ |
|
$ |
|
$ |
|
|||||
Non-investment grade |
|
|
|
||||||||
Total | $ |
|
$ |
|
$ |
|
|||||
Derivative assets | $ |
|
$ |
|
$ |
|
|||||
Derivative liabilities |
|
|
|
|
Fair Value at December 31, 2020 | ||||||||||
$ in millions
|
Level 2
|
Level 3
|
Total
|
||||||||
Retained interests | |||||||||||
Investment grade | $ |
|
$ |
|
$ |
|
|||||
Non-investment grade |
|
|
|
||||||||
Total | $ |
|
$ |
|
$ |
|
|||||
Interests purchased in the secondary market | |||||||||||
Investment grade | $ |
|
$ |
|
$ |
|
|||||
Non-investment grade |
|
|
|
||||||||
Total | $ |
|
$ |
|
$ |
|
|||||
Derivative assets | $ |
|
$ |
|
$ |
|
|||||
Derivative liabilities |
|
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||
$ in millions
|
2021 | 2020 | 2021 | 2020 | ||||||||||
New transactions
1
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Retained interests |
|
|
|
|
||||||||||
Sales of corporate loans to CLO SPEs
1, 2
|
|
|
|
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Gross cash proceeds from sale of assets
1
|
$ |
|
$ |
|
||||
Fair value | ||||||||
Assets sold | $ |
|
$ |
|
||||
Derivative assets recognized
in the balance sheets |
|
|
||||||
Derivative liabilities recognized
in the balance sheets |
|
|
63
|
June 2021 Form 10-Q |
Notes to Consolidated Financial Statements
(Unaudited) |
|
At June 30, 2021
and
December 31, 2020
|
|||||||||||||||||
Standardized | Advanced | ||||||||||||||||
Capital buffers | |||||||||||||||||
Capital conservation buffer | — |
|
|||||||||||||||
SCB |
|
N/A | |||||||||||||||
G-SIB capital surcharge |
|
|
|||||||||||||||
CCyB
1
|
|
|
|||||||||||||||
Capital buffer requirement
2
|
|
|
|||||||||||||||
At June 30, 2021
and
December 31, 2020
|
|||||||||||||||||
Regulatory Minimum
|
Standardized | Advanced | |||||||||||||||
Required ratios
3
|
|||||||||||||||||
Common Equity Tier 1 capital ratio |
|
% |
|
|
|||||||||||||
Tier 1 capital ratio |
|
% |
|
|
|||||||||||||
Total capital ratio |
|
% |
|
|
$ in millions |
Required
Ratio 1 |
At June 30, 2021 | At December 31, 2020 | ||||||||||||||||||||
Risk-based capital | |||||||||||||||||||||||
Common Equity Tier 1 capital | $ |
|
$ |
|
|||||||||||||||||||
Tier 1 capital |
|
|
|||||||||||||||||||||
Total capital |
|
|
|||||||||||||||||||||
Total RWA |
|
|
|||||||||||||||||||||
Common Equity Tier 1 capital ratio |
|
% |
|
% |
|
% | |||||||||||||||||
Tier 1 capital ratio |
|
% |
|
% |
|
% | |||||||||||||||||
Total capital ratio |
|
% |
|
% |
|
% | |||||||||||||||||
$ in millions |
Required
Ratio
1
|
At June 30, 2021 | At December 31, 2020 | ||||||||||||||||||||
Leverage-based capital | |||||||||||||||||||||||
Adjusted average assets
2
|
$ |
|
$ |
|
|||||||||||||||||||
Tier 1 leverage ratio |
|
% |
|
% |
|
% | |||||||||||||||||
Supplementary leverage exposure
3,4
|
$ |
|
$ |
|
|||||||||||||||||||
SLR
4
|
|
% |
|
% |
|
% |
June 2021 Form 10-Q |
64
|
Notes to Consolidated Financial Statements
(Unaudited) |
|
|
|
|
At June 30, 2021 | At December 31, 2020 | ||||||||||||||||
$ in millions |
Well-Capitalized
Requirement
|
Required
Ratio
1
|
Amount
|
Ratio | Amount | Ratio | ||||||||||||||
Risk-based capital | ||||||||||||||||||||
Common Equity Tier 1 capital |
|
% |
|
% | $ |
|
|
% | $ |
|
|
% | ||||||||
Tier 1 capital |
|
% |
|
% |
|
|
% |
|
|
% | ||||||||||
Total capital |
|
% |
|
% |
|
|
% |
|
|
% | ||||||||||
Leverage-based capital | ||||||||||||||||||||
Tier 1 leverage |
|
% |
|
% | $ |
|
|
% | $ |
|
|
% | ||||||||
SLR
|
|
% |
|
% |
|
|
% |
|
|
% |
|
At June 30, 2021 | At December 31, 2020 | ||||||||||||||||||
$ in millions
|
Well-Capitalized
Requirement
|
Required
Ratio
1
|
Amount
|
Ratio
|
Amount | Ratio | ||||||||||||||
Risk-based capital | ||||||||||||||||||||
Common Equity Tier 1 capital |
|
% |
|
% | $ |
|
|
% | $ |
|
|
% | ||||||||
Tier 1 capital |
|
% |
|
% |
|
|
% |
|
|
% | ||||||||||
Total capital |
|
% |
|
% |
|
|
% |
|
|
% | ||||||||||
Leverage-based capital | ||||||||||||||||||||
Tier 1 leverage |
|
% |
|
% | $ |
|
|
% | $ |
|
|
% | ||||||||
SLR
|
|
% |
|
% |
|
|
% |
|
|
% |
$ in millions |
At June 30,
2021 |
At December 31,
2020 |
||||||
Net capital | $ |
|
$ |
|
||||
Excess net capital |
|
|
|
Shares
Outstanding
|
|
Carrying Value
|
|||||||||||
$ in millions, except per share data
|
At
June 30, 2021 |
Liquidation
Preference
per Share
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||||||
Series | ||||||||||||||
A |
|
$ |
|
$ |
|
$ |
|
|||||||
C
1
|
|
|
|
|
||||||||||
E |
|
|
|
|
||||||||||
F |
|
|
|
|
||||||||||
H |
|
|
|
|
||||||||||
I |
|
|
|
|
||||||||||
J |
|
|
|
|
||||||||||
K |
|
|
|
|
||||||||||
L |
|
|
|
|
||||||||||
M |
|
|
|
|
||||||||||
N |
|
|
|
|
||||||||||
Total
|
$ |
|
$ |
|
||||||||||
Shares authorized |
|
65
|
June 2021 Form 10-Q |
Notes to Consolidated Financial Statements
(Unaudited) |
|
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
$ in millions
|
2021 | 2020 | 2021 | 2020 | ||||||||||
Repurchases of common stock under the Firm’s Share Repurchase Program | $ |
|
$ |
|
$ |
|
$ |
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Weighted average common shares outstanding, basic |
|
|
|
|
||||||||||
Effect of dilutive Stock options, RSUs and PSUs |
|
|
|
|
||||||||||
Weighted average common shares outstanding and common stock equivalents, diluted |
|
|
|
|
||||||||||
Weighted average antidilutive common stock equivalents (excluded from the computation of diluted EPS) |
|
|
|
|
$ in millions, except per
share data
|
Three Months Ended
June 30, 2021 |
Three Months Ended
June 30, 2020 |
||||||||||||
Per Share
1
|
Total
|
Per Share
1
|
Total
|
|||||||||||
Preferred stock series | ||||||||||||||
A
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
C
|
|
|
|
|
||||||||||
E
|
|
|
|
|
||||||||||
F
|
|
|
|
|
||||||||||
H |
|
|
|
|
||||||||||
I
|
|
|
|
|
||||||||||
J
2
|
|
|
|
|
||||||||||
K
|
|
|
|
|
||||||||||
L |
|
|
|
|
||||||||||
Total Preferred stock
|
$ |
|
$ |
|
||||||||||
Common stock
|
|
$ |
|
$ |
|
$ |
|
$ in millions, except per
share data
|
Six Months Ended
June 30, 2021 |
Six Months Ended
June 30, 2020 |
||||||||||||
Per Share
1
|
Total
|
Per Share
1
|
Total
|
|||||||||||
Preferred stock series | ||||||||||||||
A
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
C
|
|
|
|
|
||||||||||
E
|
|
|
|
|
||||||||||
F
|
|
|
|
|
||||||||||
H |
|
|
|
|
||||||||||
I
|
|
|
|
|
||||||||||
J
2
|
|
|
|
|
||||||||||
K
|
|
|
|
|
||||||||||
L |
|
|
|
|
||||||||||
M
3
|
|
|
|
|
||||||||||
N
4
|
|
|
|
|
||||||||||
Total Preferred stock
|
$ |
|
$ |
|
||||||||||
Common stock
|
$ |
|
$ |
|
$ |
|
$ |
|
$ in millions
|
CTA
|
AFS
Securities
|
Pension and Other |
DVA
|
Total
|
||||||||||||
March 31, 2021 | $ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||
OCI during the period |
|
(
|
|
|
|
||||||||||||
June 30, 2021 | $ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||
March 31, 2020 | $ |
(
|
$ |
|
$ |
(
|
$ |
|
$ |
|
|||||||
OCI during the period |
|
|
(
|
(
|
(
|
||||||||||||
June 30, 2020 | $ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
|||||||
December 31, 2020 | $ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||
OCI during the period |
(
|
(
|
|
|
(
|
||||||||||||
June 30, 2021 | $ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||
December 31, 2019 | $ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||
OCI during the period |
(
|
|
|
|
|
||||||||||||
June 30, 2020 | $ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
Three Months Ended June 30, 2021 | |||||||||||||||||
$ in millions
|
Pre-tax
Gain (Loss) |
Income
Tax Benefit (Provision) |
After-tax
Gain (Loss) |
Non-
controlling Interests |
Net
|
||||||||||||
CTA | |||||||||||||||||
OCI activity | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Reclassified to earnings |
|
|
|
|
|
||||||||||||
Net OCI | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||
Reclassified to earnings |
(
|
|
(
|
|
(
|
||||||||||||
Net OCI | $ |
(
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
|||||||
Pension and other | |||||||||||||||||
OCI activity | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Reclassified to earnings |
|
(
|
|
|
|
||||||||||||
Net OCI | $ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||
Reclassified to earnings |
|
(
|
|
|
|
||||||||||||
Net OCI | $ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
June 2021 Form 10-Q |
66
|
Notes to Consolidated Financial Statements
(Unaudited) |
|
Three Months Ended June 30, 2020 | |||||||||||||||||
$ in millions
|
Pre-tax
Gain (Loss) |
Income
Tax Benefit (Provision) |
After-tax
Gain (Loss) |
Non-
controlling Interests |
Net
|
||||||||||||
CTA | |||||||||||||||||
OCI activity | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Reclassified to earnings |
(
|
|
(
|
|
(
|
||||||||||||
Net OCI | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Change in net unrealized gains (losses) on AFS securities | |||||||||||||||||
OCI activity | $ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||
Reclassified to earnings |
(
|
|
(
|
|
(
|
||||||||||||
Net OCI | $ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||
Pension and other | |||||||||||||||||
OCI activity | $ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
|||||||
Reclassified to earnings |
|
(
|
|
|
|
||||||||||||
Net OCI | $ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
|||||||
Change in net DVA | |||||||||||||||||
OCI activity | $ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||
Reclassified to earnings |
|
(
|
|
|
|
||||||||||||
Net OCI | $ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
Six Months Ended June 30, 2021 | |||||||||||||||||
$ in millions
|
Pre-tax
Gain (Loss) |
Income
Tax Benefit (Provision) |
After-tax
Gain (Loss) |
Non-
controlling Interests |
Net
|
||||||||||||
CTA
|
|||||||||||||||||
OCI activity
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||
Reclassified to earnings
|
|
|
|
|
|
||||||||||||
Net OCI
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||
Change in net unrealized gains (losses) on AFS securities
|
|||||||||||||||||
OCI activity
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
|||||||
Reclassified to earnings
|
(
|
|
(
|
|
(
|
||||||||||||
Net OCI
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
|||||||
Pension and other | |||||||||||||||||
OCI activity
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Reclassified to earnings
|
|
(
|
|
|
|
||||||||||||
Net OCI
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||
Change in net DVA
|
|||||||||||||||||
OCI activity
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||
Reclassified to earnings
|
|
(
|
|
|
|
||||||||||||
Net OCI
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
Six Months Ended June 30, 2020 | |||||||||||||||||
$ in millions
|
Pre-tax
Gain (Loss) |
Income
Tax Benefit (Provision) |
After-tax
Gain (Loss) |
Non-
controlling Interests |
Net
|
||||||||||||
CTA
|
|||||||||||||||||
OCI activity
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
|||||||
Reclassified to earnings
|
(
|
|
(
|
|
(
|
||||||||||||
Net OCI
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
|||||||
Change in net unrealized gains (losses) on AFS securities
|
|||||||||||||||||
OCI activity
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||
Reclassified to earnings
|
(
|
|
(
|
|
(
|
||||||||||||
Net OCI
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||
Pension and other | |||||||||||||||||
OCI activity
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||
Reclassified to earnings
|
|
(
|
|
|
|
||||||||||||
Net OCI
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||
Change in net DVA
|
|||||||||||||||||
OCI activity
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|||||||
Reclassified to earnings
|
|
(
|
|
|
|
||||||||||||
Net OCI
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||
$ in millions
|
2021 | 2020 | 2021 | 2020 | ||||||||||
Interest income | ||||||||||||||
Investment securities | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Loans |
|
|
|
|
||||||||||
Securities purchased under agreements to resell and Securities borrowed
1
|
(
|
(
|
(
|
|
||||||||||
Trading assets, net of Trading liabilities |
|
|
|
|
||||||||||
Customer receivables and Other
2
|
|
|
|
|
||||||||||
Total interest income | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Interest expense
|
||||||||||||||
Deposits | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Borrowings |
|
|
|
|
||||||||||
Securities sold under agreements to repurchase and Securities loaned
3
|
|
|
|
|
||||||||||
Customer payables and Other
4
|
(
|
(
|
(
|
(
|
||||||||||
Total interest expense | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Net interest | $ |
|
$ |
|
$ |
|
$ |
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020
|
||||||
Customer and other receivables | $ |
|
$ |
|
||||
Customer and other payables |
|
|
67
|
June 2021 Form 10-Q |
Notes to Consolidated Financial Statements
(Unaudited) |
|
|
Three Months Ended June 30, 2021 | ||||||||||||||||
$ in millions
|
IS
|
WM
|
IM
|
I/E
|
Total
|
||||||||||||
Investment banking | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
Trading |
|
|
(
|
|
|
||||||||||||
Investments |
|
|
|
|
|
||||||||||||
Commissions and fees
1
|
|
|
|
(
|
|
||||||||||||
Asset management
1,2
|
|
|
|
(
|
|
||||||||||||
Other |
|
|
|
(
|
|
||||||||||||
Total non-interest revenues |
|
|
|
(
|
|
||||||||||||
Interest income |
|
|
|
(
|
|
||||||||||||
Interest expense |
|
|
|
(
|
|
||||||||||||
Net interest |
|
|
(
|
|
|
||||||||||||
Net revenues | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
Provision for credit losses | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Compensation and benefits |
|
|
|
|
|
||||||||||||
Non-compensation expenses |
|
|
|
(
|
|
||||||||||||
Total non-interest expenses | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
Income before provision for income taxes | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Provision for income taxes |
|
|
|
|
|
||||||||||||
Net income |
|
|
|
|
|
||||||||||||
Net income applicable to noncontrolling interests |
|
|
(
|
|
|
||||||||||||
Net income applicable to Morgan Stanley | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Three Months Ended June 30, 2020 | ||||||||||||||||
$ in millions
|
IS
|
WM
|
IM
|
I/E
|
Total
|
||||||||||||
Investment banking | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
Trading
3
|
|
|
|
|
|
||||||||||||
Investments |
|
|
|
|
|
||||||||||||
Commissions and fees
1
|
|
|
|
(
|
|
||||||||||||
Asset management
1,2
|
|
|
|
(
|
|
||||||||||||
Other
3
|
|
|
(
|
(
|
|
||||||||||||
Total non-interest revenues |
|
|
|
(
|
|
||||||||||||
Interest income |
|
|
|
(
|
|
||||||||||||
Interest expense |
|
|
|
(
|
|
||||||||||||
Net interest |
|
|
(
|
|
|
||||||||||||
Net revenues
3
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
Provision for credit losses
3
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Compensation and benefits |
|
|
|
|
|
||||||||||||
Non-compensation expenses
3
|
|
|
|
(
|
|
||||||||||||
Total non-interest expenses
3
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
Income before provision for income taxes | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Provision for income taxes |
|
|
|
|
|
||||||||||||
Net income |
|
|
|
|
|
||||||||||||
Net income applicable to noncontrolling interests |
|
|
|
|
|
||||||||||||
Net income applicable to Morgan Stanley | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Six Months Ended June 30, 2021 | ||||||||||||||||
$ in millions
|
IS
|
WM
|
IM
|
I/E
|
Total
|
||||||||||||
Investment banking
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
Trading |
|
|
(
|
|
|
||||||||||||
Investments
|
|
|
|
|
|
||||||||||||
Commissions and fees
1
|
|
|
|
(
|
|
||||||||||||
Asset management
1,2
|
|
|
|
(
|
|
||||||||||||
Other |
|
|
(
|
(
|
|
||||||||||||
Total non-interest revenues |
|
|
|
(
|
|
||||||||||||
Interest income
|
|
|
|
(
|
|
||||||||||||
Interest expense
|
|
|
|
(
|
|
||||||||||||
Net interest
|
|
|
|
|
|
||||||||||||
Net revenues
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
Provision for credit losses | $ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
(
|
|||||||
Compensation and benefits |
|
|
|
|
|
||||||||||||
Non-compensation expenses |
|
|
|
(
|
|
||||||||||||
Total non-interest expenses | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
Income before provision for income taxes | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Provision for income taxes |
|
|
|
|
|
||||||||||||
Net income
|
|
|
|
|
|
||||||||||||
Net income applicable to noncontrolling interests |
|
|
(
|
|
|
||||||||||||
Net income applicable to Morgan Stanley | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Six Months Ended June 30, 2020 | ||||||||||||||||
$ in millions
|
IS
|
WM
|
IM
|
I/E
|
Total
|
||||||||||||
Investment banking
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
Trading
3
|
|
|
(
|
|
|
||||||||||||
Investments
|
|
|
|
|
|
||||||||||||
Commissions and fees
1
|
|
|
|
(
|
|
||||||||||||
Asset management
1,2
|
|
|
|
(
|
|
||||||||||||
Other
3
|
(
|
|
(
|
(
|
|
||||||||||||
Total non-interest revenues |
|
|
|
(
|
|
||||||||||||
Interest income |
|
|
|
(
|
|
||||||||||||
Interest expense |
|
|
|
(
|
|
||||||||||||
Net interest |
|
|
(
|
|
|
||||||||||||
Net revenues
3
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
Provision for credit losses
3
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Compensation and benefits |
|
|
|
|
|
||||||||||||
Non-compensation expenses
3
|
|
|
|
(
|
|
||||||||||||
Total non-interest expenses
3
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
Income before provision for income taxes | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
Provision for income taxes |
|
|
|
|
|
||||||||||||
Net income
|
|
|
|
|
|
||||||||||||
Net income applicable to noncontrolling interests |
|
|
|
|
|
||||||||||||
Net income applicable to Morgan Stanley | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
June 2021 Form 10-Q |
68
|
Notes to Consolidated Financial Statements
(Unaudited) |
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Institutional Securities Advisory | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Institutional Securities Underwriting |
|
|
|
|
||||||||||
Firm Investment banking revenues from contracts with customers |
|
% |
|
% |
|
% |
|
% |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Interest rate | $ |
|
$ |
|
$ |
|
$ |
|
||||||
Foreign exchange |
|
|
|
|
||||||||||
Equity security and index
2
|
|
|
|
|
||||||||||
Commodity and other |
|
|
|
|
||||||||||
Credit |
|
|
|
|
||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Net cumulative unrealized performance-based income at risk of reversing | $ |
|
$ |
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Fee waivers | $ |
|
$ |
|
$ |
|
$ |
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Transaction taxes | $ |
|
$ |
|
$ |
|
$ |
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Americas | $ |
|
$ |
|
$ |
|
$ |
|
||||||
EMEA |
|
|
|
|
||||||||||
Asia |
|
|
|
|
||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||
$ in millions | 2021 | 2020 | 2021 | 2020 | ||||||||||
Non-interest revenues | $ |
|
$ |
|
$ |
|
$ |
|
69
|
June 2021 Form 10-Q |
Notes to Consolidated Financial Statements
(Unaudited) |
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Customer and other receivables | $ |
|
$ |
|
$ in millions
|
At
June 30, 2021 |
At
December 31, 2020 |
||||||
Institutional Securities
|
$ |
|
$ |
|
||||
Wealth Management
|
|
|
||||||
Investment Management |
|
|
||||||
Total
1
|
$ |
|
$ |
|
June 2021 Form 10-Q |
70
|
|
Three Months Ended June 30, | |||||||||||||||||||
|
2021 | 2020 | ||||||||||||||||||
$ in millions
|
Average
Daily
Balance
|
Interest
|
Annualized
Average
Rate
|
Average
Daily
Balance
|
Interest
|
Annualized
Average
Rate
|
||||||||||||||
Interest earning assets
|
||||||||||||||||||||
Investment securities
1
|
$ | 181,482 | $ | 608 | 1.3 | % | $ | 123,713 | $ | 629 | 2.0 | % | ||||||||
Loans
1
|
161,767 | 1,040 | 2.6 | % | 147,326 | 1,050 | 2.9 | % | ||||||||||||
Securities purchased under agreements to resell and Securities borrowed
2
:
|
||||||||||||||||||||
U.S. | 152,770 | (200) | (0.5) | % | 141,722 | (85) | (0.2) | % | ||||||||||||
Non-U.S. | 73,218 | (121) | (0.7) | % | 61,283 | (56) | (0.4) | % | ||||||||||||
Trading assets, net of Trading liabilities
3
:
|
||||||||||||||||||||
U.S. | 77,814 | 409 | 2.1 | % | 70,641 | 489 | 2.8 | % | ||||||||||||
Non-U.S. | 17,897 | 77 | 1.7 | % | 24,757 | 127 | 2.1 | % | ||||||||||||
Customer receivables and Other
4
:
|
||||||||||||||||||||
U.S. | 130,618 | 340 | 1.0 | % | 87,620 | 166 | 0.8 | % | ||||||||||||
Non-U.S. | 76,329 | 59 | 0.3 | % | 62,126 | 38 | 0.2 | % | ||||||||||||
Total | $ | 871,895 | $ | 2,212 | 1.0 | % | $ | 719,188 | $ | 2,358 | 1.3 | % | ||||||||
Interest bearing liabilities | ||||||||||||||||||||
Deposits
1
|
$ | 321,138 | $ | 108 | 0.1 | % | $ | 235,370 | $ | 220 | 0.4 | % | ||||||||
Borrowings
1, 5
|
221,911 | 719 | 1.3 | % | 202,280 | 823 | 1.6 | % | ||||||||||||
Securities sold under agreements to repurchase and Securities loaned
6
:
|
||||||||||||||||||||
U.S. | 37,849 | 33 | 0.3 | % | 28,840 | 92 | 1.3 | % | ||||||||||||
Non-U.S. | 29,719 | 83 | 1.1 | % | 30,446 | 117 | 1.5 | % | ||||||||||||
Customer payables and Other
7
:
|
||||||||||||||||||||
U.S. | 129,695 | (481) | (1.5) | % | 121,977 | (403) | (1.3) | % | ||||||||||||
Non-U.S. | 75,829 | (115) | (0.6) | % | 63,778 | (91) | (0.6) | % | ||||||||||||
Total | $ | 816,141 | $ | 347 | 0.2 | % | $ | 682,691 | $ | 758 | 0.4 | % | ||||||||
Net interest income and net interest rate spread | $ | 1,865 | 0.8 | % | $ | 1,600 | 0.9 | % |
Six Months Ended June 30, | ||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||
$ in millions | Average Daily Balance |
Interest
|
Annualized Average Rate | Average Daily Balance |
Interest
|
Annualized Average Rate | ||||||||||||||
Interest earning assets | ||||||||||||||||||||
Investment securities
1
|
$ | 184,377 | $ | 1,457 | 1.6 | % | $ | 116,995 | $ | 1,074 | 1.8 | % | ||||||||
Loans
1
|
156,729 | 2,028 | 2.6 | % | 140,884 | 2,204 | 3.1 | % | ||||||||||||
Securities purchased under agreements to resell and Securities borrowed
2
:
|
||||||||||||||||||||
U.S. | 149,440 | (369) | (0.5) | % | 131,357 | 293 | 0.4 | % | ||||||||||||
Non-U.S. | 70,897 | (248) | (0.7) | % | 59,131 | (36) | (0.1) | % | ||||||||||||
Trading assets, net of Trading liabilities
3
:
|
||||||||||||||||||||
U.S. | 75,563 | 819 | 2.2 | % | 74,663 | 1,115 | 3.0 | % | ||||||||||||
Non-U.S. | 17,518 | 177 | 2.0 | % | 23,905 | 250 | 2.1 | % | ||||||||||||
Customer receivables and Other
4
:
|
||||||||||||||||||||
U.S. | 134,298 | 677 | 1.0 | % | 77,694 | 721 | 1.9 | % | ||||||||||||
Non-U.S. | 75,249 | 108 | 0.3 | % | 61,078 | 240 | 0.8 | % | ||||||||||||
Total | $ | 864,071 | $ | 4,649 | 1.1 | % | $ | 685,707 | $ | 5,861 | 1.7 | % | ||||||||
Interest bearing liabilities | ||||||||||||||||||||
Deposits
1
|
$ | 320,688 | $ | 228 | 0.1 | % | $ | 217,472 | $ | 626 | 0.6 | % | ||||||||
Borrowings
1, 5
|
218,816 | 1,433 | 1.3 | % | 197,171 | 1,820 | 1.9 | % | ||||||||||||
Securities sold under agreements to repurchase and Securities loaned
6
:
|
||||||||||||||||||||
U.S. | 35,891 | 77 | 0.4 | % | 29,954 | 420 | 2.8 | % | ||||||||||||
Non-U.S. | 28,486 | 153 | 1.1 | % | 30,261 | 298 | 2.0 | % | ||||||||||||
Customer payables and Other
7
:
|
||||||||||||||||||||
U.S. | 130,065 | (918) | (1.4) | % | 125,797 | (294) | (0.5) | % | ||||||||||||
Non-U.S. | 71,608 | (217) | (0.6) | % | 63,375 | 35 | 0.1 | % | ||||||||||||
Total | $ | 805,554 | $ | 756 | 0.2 | % | $ | 664,030 | $ | 2,905 | 0.9 | % | ||||||||
Net interest income and net interest rate spread | $ | 3,893 | 0.9 | % |
|
$ | 2,956 | 0.8 | % |
71
|
June 2021 Form 10-Q |
Glossary of Common Terms and Acronyms |
|
2020 Form 10-K | Annual report on Form 10-K for year ended December 31, 2020 filed with the SEC | ||||
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) | ||||
CRM | Credit Risk Management Department | ||||
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 | ||||
FDIC | Federal Deposit Insurance Corporation | ||||
FFELP | Federal Family Education Loan Program | ||||
FHC | Financial Holding Company | ||||
FICO | Fair Isaac Corporation | ||||
Financial statements | Consolidated financial statements | ||||
G-SIB | Global systemically important banks | ||||
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 | ||||
MSBNA | Morgan Stanley Bank, N.A. | ||||
MS&Co. | Morgan Stanley & Co. LLC | ||||
MSIP | Morgan Stanley & Co. International plc | ||||
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. | ||||
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) | ||||
OTC | Over-the-counter | ||||
PRA | Prudential Regulation Authority | ||||
PSU | Performance-based stock unit | ||||
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 | ||||
SCB | Stress capital buffer | ||||
SEC | U.S. Securities and Exchange Commission | ||||
SLR | Supplementary leverage ratio | ||||
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 |
June 2021 Form 10-Q |
72
|
$ in millions, except per share data
|
Total Number of Shares Purchased
1
|
Average Price Paid per Share |
Total Shares Purchased as Part of Share Repurchase Program
2,3
|
Dollar Value of Remaining Authorized Repurchase
|
||||||||||
April | 9,005,938 | $ | 79.84 | 8,095,000 | $ | 7,219 | ||||||||
May | 14,426,207 | $ | 85.91 | 14,386,200 | $ | 5,983 | ||||||||
June | 11,627,627 | $ | 91.07 | 11,606,923 | $ | 4,926 | ||||||||
Total
|
35,059,772 | $ | 86.06 | 34,088,123 |
Exhibit No.
|
Description
|
||||
10.1 | |||||
15 | |||||
31.1 | |||||
31.2 | |||||
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).
|
73
|
June 2021 Form 10-Q |
MORGAN STANLEY
(Registrant)
|
|||||
By:
|
/s/ S
HARON
Y
ESHAYA
|
||||
Sharon Yeshaya
Executive Vice President and Chief Financial Officer |
|||||
By:
|
/s/ R
AJA
J. A
KRAM
|
||||
Raja J. Akram
Deputy Chief Financial Officer,
Chief Accounting Officer and Controller
|
June 2021 Form 10-Q |
74
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|---|---|---|
VANGUARD GROUP INC | 13,097,041 | 504,628,989 | |
H PARTNERS MANAGEMENT, LLC | 11,300,000 | 435,389,000 | |
FMR LLC | 8,395,569 | 323,481,305 | |
Beutel, Goodman & Co Ltd. | 7,587,245 | 292,336 | |
Boston Partners | 7,381,625 | 284,324,076 | |
DIMENSIONAL FUND ADVISORS LP | 6,502,211 | 250,537,496 | |
LSV ASSET MANAGEMENT | 5,479,182 | 211,113 | |
Pacer Advisors, Inc. | 4,182,864 | 161,165,750 | |
AMERICAN CENTURY COMPANIES INC | 3,061,379 | 117,954,933 | |
JUPITER ASSET MANAGEMENT LTD | 2,390,683 | 92,113,016 | |
GEODE CAPITAL MANAGEMENT, LLC | 2,085,479 | 80,373,902 | |
BROWN ADVISORY INC | 1,497,256 | 57,689,274 | |
CITADEL ADVISORS LLC | 1,393,086 | 53,675,604 | |
CHARLES SCHWAB INVESTMENT MANAGEMENT INC | 1,298,047 | 50,013,751 | |
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP | 1,141,817 | 43,994,209 | |
EATON VANCE MANAGEMENT | 914,946 | 31,914 | |
Parametric Portfolio Associates LLC | 876,020 | 34,515 | |
FIRST TRUST ADVISORS LP | 785,266 | 30,256,298 | |
SUSQUEHANNA INTERNATIONAL GROUP, LLP | 674,620 | 25,993,109 | |
MILLENNIUM MANAGEMENT LLC | 654,640 | 25,223,279 | |
RAYMOND JAMES & ASSOCIATES | 647,000 | 24,928,903 | |
Qube Research & Technologies Ltd | 627,196 | 24,165,862 | |
Brandywine Global Investment Management, LLC | 488,731 | 17,330,401 | |
Nuveen Asset Management, LLC | 465,579 | 17,938,759 | |
Banco BTG Pactual S.A. | 414,687 | 15,977,890 | |
JANE STREET GROUP, LLC | 404,174 | 15,572,824 | |
D. E. Shaw & Co., Inc. | 395,239 | 15,228,558 | |
HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC | 394,680 | 15,207,020 | |
UBS AM, a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC | 390,579 | 15,049,009 | |
PRAGMA GESTAO DE PATRIMONIO LTD | 360,000 | 13,870,800 | |
RENAISSANCE TECHNOLOGIES LLC | 344,400 | 13,269,732 | |
Kiltearn Partners LLP | 342,420 | 13,193,443 | |
ALGERT GLOBAL LLC | 327,286 | 12,610 | |
BNP PARIBAS FINANCIAL MARKETS | 308,925 | 12,391,132 | |
GLENMEDE TRUST CO NA | 298,071 | 11,484,675 | |
Legal & General Group Plc | 275,910 | 10,630,814 | |
Man Group plc | 270,925 | 10,438,740 | |
SIMPLEX TRADING, LLC | 254,400 | 9,801 | |
GTS SECURITIES LLC | 253,071 | 9,750,826 | |
Swiss National Bank | 249,600 | 9,617,088 | |
California Public Employees Retirement System | 217,071 | 8,363,746 | |
Walleye Capital LLC | 213,948 | 8,243,416 | |
Squarepoint Ops LLC | 207,839 | 8,008,037 | |
WINTON GROUP Ltd | 191,800 | 7,390,054 | |
Artisan Partners Limited Partnership | 191,702 | 7,386,278 | |
CREDIT SUISSE AG/ | 182,659 | 7,989,505 | |
AQR CAPITAL MANAGEMENT LLC | 178,002 | 6,858,417 | |
CAPITAL FUND MANAGEMENT S.A. | 175,693 | 6,769,451 | |
VAN ECK ASSOCIATES CORP | 175,445 | 5,988 | |
WOLVERINE TRADING, LLC | 172,500 | 6,791,325 | |
Quantbot Technologies LP | 172,258 | 6,637,101 | |
Walleye Trading LLC | 171,698 | 6,615,524 | |
STATE BOARD OF ADMINISTRATION OF FLORIDA RETIREMENT SYSTEM | 158,552 | 6,109,009 | |
NEW YORK STATE TEACHERS RETIREMENT SYSTEM | 152,134 | 5,862 | |
Retirement Systems of Alabama | 143,899 | 5,544,428 | |
Gotham Asset Management, LLC | 135,794 | 5,232,143 | |
LANDSCAPE CAPITAL MANAGEMENT, L.L.C. | 135,577 | 5,223,782 | |
CANADA LIFE ASSURANCE Co | 135,268 | 5,216 | |
CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM | 121,790 | 4,692,569 | |
IMC-Chicago, LLC | 121,400 | 4,677,542 | |
Trexquant Investment LP | 118,214 | 4,554,785 | |
Allianz Asset Management GmbH | 113,487 | 4,372,654 | |
GROUP ONE TRADING LLC | 110,900 | 4,272,977 | |
STATE OF WISCONSIN INVESTMENT BOARD | 110,850 | 4,271,051 | |
Diversified Trust Co | 100,478 | 3,871,417 | |
Verition Fund Management LLC | 97,805 | 3,768,427 | |
MANUFACTURERS LIFE INSURANCE COMPANY, THE | 97,447 | 3,754,633 | |
CLARK ESTATES INC/NY | 84,950 | 3,273,124 | |
NEW YORK STATE COMMON RETIREMENT FUND | 80,776 | 3,112 | |
Illinois Municipal Retirement Fund | 80,010 | 3,082,785 | |
Treasurer of the State of North Carolina | 79,664 | 3,069 | |
NISA INVESTMENT ADVISORS, LLC | 79,488 | 3,062,673 | |
Aperio Group, LLC | 79,228 | 2,907 | |
Engineers Gate Manager LP | 79,114 | 3,048,262 | |
PDT Partners, LLC | 76,160 | 2,934,445 | |
Balyasny Asset Management L.P. | 75,000 | 2,889,750 | |
Crossmark Global Holdings, Inc. | 74,160 | 2,857 | |
Alaska Permanent Fund Corp | 73,667 | 2,838,390 | |
Teza Capital Management LLC | 71,956 | 2,772,465 | |
PRICE T ROWE ASSOCIATES INC /MD/ | 70,972 | 2,735 | |
Cetera Investment Advisers | 70,317 | 2,709,330 | |
MUTUAL OF AMERICA CAPITAL MANAGEMENT LLC | 64,022 | 2,466,768 | |
ENVESTNET ASSET MANAGEMENT INC | 62,635 | 2,413,314 | |
QS Investors, LLC | 61,690 | 2,827 | |
MetLife Investment Management, LLC | 61,268 | 2,360,656 | |
MACQUARIE GROUP LTD | 59,700 | 2,300,000 | |
Jump Financial, LLC | 59,134 | 2,278,433 | |
WEDGE CAPITAL MANAGEMENT L L P/NC | 58,257 | 2,244,642 | |
TEACHER RETIREMENT SYSTEM OF TEXAS | 58,031 | 2,236 | |
AMALGAMATED BANK | 56,659 | 2,183 | |
COMERICA BANK | 55,584 | 2,141,652 | |
Lombard Odier Asset Management (USA) Corp | 55,525 | 2,139,378 | |
Crawford Fund Management, LLC | 54,000 | 2,080,620 | |
GABELLI FUNDS LLC | 53,800 | 2,072,914 | |
State of New Jersey Common Pension Fund D | 52,062 | 2,005,949 | |
Alberta Investment Management Corp | 52,000 | 2,003,560 | |
Ameritas Investment Partners, Inc. | 51,303 | 1,976,705 | |
Quantinno Capital Management LP | 50,475 | 1,944,824 | |
Aquatic Capital Management LLC | 50,400 | 1,941,912 | |
Mork Capital Management, LLC | 50,000 | 1,926,500 |
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|---|---|---|
Mr. Masood is the Chief Growth and Digital Officer of Royal Caribbean Group, a global cruise company. Prior to joining Royal Caribbean Group in March 2023, Mr. Masood served as Executive Vice President (EVP) and Chief Customer Officer at Bed Bath & Beyond Inc., a home goods store, from 2021 until 2022, where he oversaw the digital and brand teams in devising an all-encompassing customer engagement strategy. Mr. Masood also served as EVP and Chief Digital Officer at Bed Bath & Beyond Inc. from 2020 to 2021. In that role, he established an omni-always shopping experience for customers and had oversight of the end-to-end customer journey, from e-commerce merchandising and user experience optimization to customer contact management and support. Mr. Masood previously served as Senior Vice President and Chief Digital Officer at BJ's Wholesale Club Holdings, Inc., a membership-only warehouse club, from 2017 to 2020. In this role, he was responsible for the company's online and omnichannel business, including strategy, customer experience, and product development. Previously, Mr. Masood held leadership roles in customer innovation, technology, operations, and procurement at DICK's Sporting Goods, Sears and BAWAG Group. Mr. Masood holds a bachelor’s degree in information systems and a Master of Business Administration from DePaul University. He also serves as an adjunct faculty member at Carnegie Mellon University's Heinz College of Information Systems and Public Policy. | |||
Mr. Root was appointed Chief Financial Officer of Harley-Davidson in June 2023. Mr. Root has over 25 years of financial services and corporate finance experience. He joined HDFS in 2011 and has held various HDFS leadership roles, including serving most recently as Senior Vice President of HDFS from April 2020 to June 2023, as well as Vice President of Insurance and Protection Products from 2015 to 2020. | |||
Mr. Krishnan has been with Harley-Davidson since 2020 and was promoted to Chief Digital Officer and Operations Officer in March 2023 after serving as Chief Digital Officer since 2020. He served as Vice President and Chief Digital Officer at Bose Corporation, an American manufacturing company of audio equipment and accessories, from 2016 to 2020. Before Bose, he held leadership positions with Deloitte & Touche and Panti Computer Systems, where he led information security, enterprise software development and IT operations. | |||
NAME AND
PRINCIPAL POSITION |
YEAR
|
SALARY
($) |
BONUS
($)
|
STOCK
AWARDS
($)
|
OPTION
AWARDS ($) |
NON-EQUITY
INCENTIVE
PLAN
COMPENSATION
($)
|
CHANGE
IN PENSION VALUE AND NONQUALIFIED DEFERRED COMPENSATION EARNINGS ($) |
ALL OTHER
COMPENSATION
($)
|
TOTAL
($)
|
||||||||||||||||||||
Jochen Zeitz
President and Chief Executive Officer
|
2023 | $ | 1,948,000 | $ | — | $ | 6,500,029 | $ | — | $ | 3,093,600 | $ | — | $ | 411,651 | $ | 11,953,280 | ||||||||||||
2022 | $ | 1,900,000 | $ | — | $ | 38,407,535 | $ | — | $ | 2,738,400 | $ | — | $ | 278,929 | $ | 43,324,864 | |||||||||||||
2021 | $ | 2,500,000 | $ | — | $ | 6,000,030 | $ | 6,435,000 | $ | 3,000,000 | $ | — | $ | 170,538 | $ | 18,105,568 | |||||||||||||
Jonathan Root
Chief Financial Officer
|
2023 | $ | 503,000 | $ | — | $ | 490,475 | $ | — | $ | 249,689 | $ | — | $ | 51,462 | $ | 1,294,626 | ||||||||||||
David Viney
Former Interim Chief Financial Officer
|
2023 | $ | 360,500 | $ | 150,000 | $ | 253,016 | $ | — | $ | 119,686 | $ | — | $ | 21,742 | $ | 904,444 | ||||||||||||
Gina Goetter
Former Chief Financial Officer
|
2023 | $ | 188,000 | $ | — | $ | 884,154 | $ | — | $ | — | $ | — | $ | 84,042 | $ | 1,156,196 | ||||||||||||
2022 | $ | 550,000 | $ | — | $ | 3,250,308 | $ | — | $ | 533,418 | $ | — | $ | 36,327 | $ | 4,370,053 | |||||||||||||
2021 | $ | 475,000 | $ | — | $ | 402,622 | $ | — | $ | 1,140,000 | $ | — | $ | 17,654 | $ | 2,035,276 | |||||||||||||
Edel O'Sullivan
Chief Commercial Officer
|
2023 | $ | 475,000 | $ | — | $ | 607,867 | $ | — | $ | 283,860 | $ | — | $ | 64,172 | $ | 1,430,899 | ||||||||||||
2022 | $ | 475,000 | $ | — | $ | 3,052,053 | $ | — | $ | 487,778 | $ | — | $ | 29,437 | $ | 4,044,268 | |||||||||||||
2021 | $ | 398,219 | $ | 500,000 | $ | 347,275 | $ | — | $ | 716,795 | $ | — | $ | — | $ | 1,962,289 | |||||||||||||
Jagdish Krishnan
Chief Digital and Operations Officer
|
2023 | $ | 562,000 | $ | — | $ | 794,675 | $ | — | $ | 276,893 | $ | — | $ | 62,850 | $ | 1,696,418 | ||||||||||||
2022 | $ | 475,000 | $ | — | $ | 3,185,656 | $ | — | $ | 379,383 | $ | — | $ | 38,035 | $ | 4,078,074 | |||||||||||||
2021 | $ | 475,000 | $ | — | $ | 402,622 | $ | — | $ | 665,000 | $ | — | $ | 22,386 | $ | 1,565,008 | |||||||||||||
Paul Krause
Chief Legal Officer, Chief Compliance Officer, and Corporate Secretary
|
2023 | $ | 474,000 | $ | — | $ | 602,834 | $ | — | $ | 205,010 | $ | — | $ | 69,662 | $ | 1,351,506 | ||||||||||||
2022 | $ | 450,000 | $ | — | $ | 2,171,360 | $ | — | $ | 333,743 | $ | — | $ | 36,025 | $ | 2,991,128 |
No Customers Found
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|---|---|---|
ZEITZ JOCHEN | Director | 589,681 | 577 |
ZEITZ JOCHEN | President and CEO | 581,501 | 577 |
Alstead Troy | Director | 26,634 | 0 |
Sylvester Maryrose | Director | 17,687 | 0 |
LINEBARGER NORMAN THOMAS | Director | 15,908 | 0 |
Krause Paul J | VP, Chief Legal Officer | 11,333 | 553 |
Termaat Tori | Director | 7,225 | 36 |
Termaat Tori | Chief Human Resources Officer | 5,725 | 36 |
Root Jonathan R | SVP - HDFSI | 5,474 | 13,854 |
O'Sullivan Coyne Edel M. | Chief Commercial Officer | 3,192 | 0 |
Masood Rafeh | Director | 2,637 | 0 |
Do Charles | Sr. Vice President, HDFSI | 183 | 0 |