BANK LOANS, NET (Tables)

9 Months Ended

Jun. 30, 2026

Schedule of Held for investment Loans by Portfolio Segment

The following table presents the balances for held for investment loans by portfolio segment and held for sale loans.


$ in millions	June 30, 2026			September 30, 2025
SBL	$	24,767		$	19,775
C&I loans	10,040			10,777
CRE loans	7,689			7,840
REIT loans	1,671			1,690
Residential mortgage loans	11,223			10,295
Tax-exempt loans	1,101			1,226
Total loans held for investment	56,491			51,603
Held for sale loans	134			416
Total loans held for sale and investment	56,625			52,019
Allowance for credit losses	(398)			(452)
Bank loans, net	$	56,227		$	51,567

ACL as a % of total loans held for investment	0.70		%	0.88		%
Accrued interest receivable on bank loans (included in “Other receivables, net”)	$	218		$	216

Loan Purchases and Sales

The following table presents purchases and sales of loans held for investment by portfolio segment.


$ in millions	C&I loans		CRE loans		REIT loans		Residential mortgage loans		Total
Three months ended June 30, 2026
Purchases	$	102	$	—	$	—	$	4	$	106
Sales	$	510	$	—	$	—	$	1	$	511
Nine months ended June 30, 2026
Purchases	$	390	$	—	$	—	$	20	$	410
Sales	$	614	$	—	$	—	$	1	$	615
Three months ended June 30, 2025
Purchases	$	156	$	—	$	14	$	94	$	264
Sales	$	103	$	—	$	—	$	—	$	103
Nine months ended June 30, 2025
Purchases	$	802	$	—	$	14	$	226	$	1,042
Sales	$	180	$	13	$	—	$	—	$	193

Analysis of the Payment Status of Loans Held for Investment

The following table presents information on delinquency status of our loans held for investment.


$ in millions	30-89 days and accruing		90 days or more and accruing		Total past due and accruing		Nonaccrual with allowance		Nonaccrual with no allowance		Current and accruing		Total loans held for investment
June 30, 2026
SBL	$	—	$	—	$	—	$	—	$	—	$	24,767	$	24,767
C&I loans	—		—		—		27		18		9,995		10,040
CRE loans	—		—		—		93		7		7,589		7,689
REIT loans	—		—		—		—		—		1,671		1,671
Residential mortgage loans	10		—		10		—		6		11,207		11,223
Tax-exempt loans	—		—		—		—		—		1,101		1,101
Total loans held for investment	$	10	$	—	$	10	$	120	$	31	$	56,330	$	56,491

September 30, 2025
SBL	$	1	$	—	$	1	$	—	$	—	$	19,774	$	19,775
C&I loans	1		—		1		39		5		10,732		10,777
CRE loans	—		—		—		101		9		7,730		7,840
REIT loans	—		—		—		19		—		1,671		1,690
Residential mortgage loans	5		—		5		—		13		10,277		10,295
Tax-exempt loans	—		—		—		—		—		1,226		1,226
Total loans held for investment	$	7	$	—	$	7	$	159	$	27	$	51,410	$	51,603

Loans Pledged as Collateral

The following table presents the amortized cost of our collateral-dependent loans and the nature of the collateral.


$ in millions	Nature of collateral	June 30, 2026		September 30, 2025

C&I loans	Commercial real estate and other business assets	$	31	$	13
CRE loans (1)	Office, multi-family residential, retail, hospitality, and industrial real estate	$	302	$	165
REIT loans (1)	Office real estate	$	—	$	113
Residential mortgage loans	Single family homes	$	3	$	9

(1) During the nine months ended June 30, 2026, a certain loan was reassigned from the REIT loan portfolio to the CRE loan portfolio based on changes in the loan characteristics during the period.

Credit Quality of Held for Investment Loan Portfolio

The following tables present our held for investment bank loan portfolio by credit quality indicator. Loans classified as special mention, substandard or doubtful are all considered to be “criticized” loans.


	As of and for the nine months ended June 30, 2026
	Loans by origination fiscal year
$ in millions	2026		2025		2024		2023		2022		Prior		Revolving loans		Total
SBL
Risk rating:
Pass	$	17	$	11	$	43	$	31	$	24	$	70	$	24,532	$	24,728
Special mention (1)	—		—		—		—		—		—		39		39
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total SBL	$	17	$	11	$	43	$	31	$	24	$	70	$	24,571	$	24,767
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



C&I loans
Risk rating:
Pass	$	559	$	576	$	704	$	288	$	879	$	3,301	$	3,658	$	9,965
Special mention	—		1		—		12		—		—		—		13
Substandard	—		—		1		—		—		32		8		41
Doubtful	—		—		—		—		—		20		1		21
Total C&I loans	$	559	$	577	$	705	$	300	$	879	$	3,353	$	3,667	$	10,040
Gross charge-offs	$	—	$	1	$	—	$	—	$	1	$	7	$	—	$	9



CRE loans
Risk rating:
Pass	$	870	$	1,486	$	527	$	773	$	1,227	$	1,534	$	819	$	7,236
Special mention	—		—		4		54		90		—		—		148
Substandard	—		—		22		50		83		127		—		282
Doubtful	—		—		—		—		—		23		—		23
Total CRE loans	$	870	$	1,486	$	553	$	877	$	1,400	$	1,684	$	819	$	7,689
Gross charge offs	$	—	$	—	$	—	$	—	$	19	$	3	$	—	$	22



REIT loans
Risk rating:
Pass	$	231	$	304	$	68	$	109	$	58	$	284	$	617	$	1,671
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total REIT loans	$	231	$	304	$	68	$	109	$	58	$	284	$	617	$	1,671
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Residential mortgage loans
Risk rating:
Pass	$	1,802	$	1,677	$	1,072	$	1,316	$	2,365	$	2,925	$	40	$	11,197
Special mention	—		—		1		1		4		5		—		11
Substandard	—		—		—		1		4		10		—		15
Doubtful	—		—		—		—		—		—		—		—
Total residential mortgage loans	$	1,802	$	1,677	$	1,073	$	1,318	$	2,373	$	2,940	$	40	$	11,223
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Tax-exempt loans
Risk rating:
Pass	$	55	$	49	$	—	$	57	$	185	$	755	$	—	$	1,101
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total tax-exempt loans	$	55	$	49	$	—	$	57	$	185	$	755	$	—	$	1,101
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(1)As of June 30, 2026, this balance was related to a loan which was collateralized by private securities.


	As of and for the year ended September 30, 2025
	Loans by origination fiscal year
$ in millions	2025		2024		2023		2022		2021		Prior		Revolving loans		Total
SBL
Risk rating:
Pass	$	21	$	62	$	30	$	20	$	29	$	43	$	19,485	$	19,690
Special mention (1)	—		—		—		—		—		—		85		85
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total SBL	$	21	$	62	$	30	$	20	$	29	$	43	$	19,570	$	19,775
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—




C&I loans
Risk rating:
Pass	$	746	$	743	$	366	$	1,016	$	849	$	3,495	$	3,455	$	10,670
Special mention	—		—		16		1		—		—		3		20
Substandard	—		1		—		—		2		64		20		87
Doubtful	—		—		—		—		—		—		—		—
Total C&I loans	$	746	$	744	$	382	$	1,017	$	851	$	3,559	$	3,478	$	10,777
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	32	$	1	$	33




CRE loans
Risk rating:
Pass	$	1,333	$	789	$	1,023	$	1,698	$	599	$	1,473	$	612	$	7,527
Special mention	—		—		25		90		—		7		—		122
Substandard	—		—		27		86		—		55		—		168
Doubtful	—		—		—		—		—		23		—		23
Total CRE loans	$	1,333	$	789	$	1,075	$	1,874	$	599	$	1,558	$	612	$	7,840
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	11	$	1	$	12




REIT loans
Risk rating:
Pass	$	289	$	128	$	158	$	59	$	113	$	241	$	570	$	1,558
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		19		—		113		—		—		132
Doubtful	—		—		—		—		—		—		—		—
Total REIT loans	$	289	$	128	$	177	$	59	$	226	$	241	$	570	$	1,690
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Residential mortgage loans
Risk rating:
Pass	$	1,810	$	1,206	$	1,465	$	2,511	$	1,389	$	1,849	$	42	$	10,272
Special mention	—		—		—		1		1		3		—		5
Substandard	—		—		—		6		—		12		—		18
Doubtful	—		—		—		—		—		—		—		—
Total residential mortgage loans	$	1,810	$	1,206	$	1,465	$	2,518	$	1,390	$	1,864	$	42	$	10,295
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	1




Tax-exempt loans
Risk rating:
Pass	$	49	$	62	$	57	$	215	$	144	$	699	$	—	$	1,226
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total tax-exempt loans	$	49	$	62	$	57	$	215	$	144	$	699	$	—	$	1,226
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(1)As of September 30, 2025, this balance was related to a loan which was collateralized by private securities.

The following table presents the held for investment residential mortgage loan portfolio by LTV ratio at origination and by FICO score.


	June 30, 2026
	Loans by origination fiscal year
$ in millions	2026		2025		2024		2023		2022		Prior		Revolving loans		Total
FICO score:
Below 600	$	2	$	4	$	10	$	9	$	16	$	25	$	—	$	66
600 - 699	77		61		44		67		111		116		7		483
700 - 799	1,412		982		636		721		1,293		1,585		27		6,656
800 +	310		630		381		521		953		1,211		6		4,012
FICO score not available	1		—		2		—		—		3		—		6
Total	$	1,802	$	1,677	$	1,073	$	1,318	$	2,373	$	2,940	$	40	$	11,223

LTV ratio:
Below 80%	$	1,178	$	1,178	$	775	$	930	$	1,823	$	2,280	$	40	$	8,204
80%+	624		499		298		388		550		660		—		3,019
Total	$	1,802	$	1,677	$	1,073	$	1,318	$	2,373	$	2,940	$	40	$	11,223


	September 30, 2025
	Loans by origination fiscal year
$ in millions	2025		2024		2023		2022		2021		Prior		Revolving loans		Total
FICO score:
Below 600	$	5	$	5	$	11	$	17	$	7	$	18	$	—	$	63
600 - 699	74		60		66		96		43		90		5		434
700 - 799	1,424		747		815		1,419		744		1,026		29		6,204
800 +	306		392		572		986		594		727		8		3,585
FICO score not available	1		2		1		—		2		3		—		9
Total	$	1,810	$	1,206	$	1,465	$	2,518	$	1,390	$	1,864	$	42	$	10,295

LTV ratio:
Below 80%	$	1,271	$	874	$	1,037	$	1,926	$	1,100	$	1,432	$	41	$	7,681
80%+	539		332		428		592		290		432		1		2,614
Total	$	1,810	$	1,206	$	1,465	$	2,518	$	1,390	$	1,864	$	42	$	10,295

Changes in the Allowance for Loan Losses

The following table presents changes in the allowance for credit losses on held for investment bank loans by portfolio segment.


$ in millions	SBL			C&I loans			CRE loans (1)			REIT loans (1)			Residential mortgage loans			Tax-exempt loans			Total
Three months ended June 30, 2026
Balance at beginning of period	$	6		$	144		$	206		$	19		$	64		$	1		$	440


Provision/(benefit) for credit losses	(1)			(15)			(6)			(4)			—			—			(26)

Net (charge-offs)/recoveries:
Charge-offs	—			(8)			(8)			—			—			—			(16)
Recoveries	—			—			1			—			—			—			1
Net charge-offs	—			(8)			(7)			—			—			—			(15)
Foreign exchange translation adjustment	—			—			(1)			—			—			—			(1)
Balance at end of period	$	5		$	121		$	192		$	15		$	64		$	1		$	398

Nine months ended June 30, 2026
Balance at beginning of period	$	8		$	148		$	182		$	52		$	61		$	1		$	452


Provision/(benefit) for credit losses	(3)			(18)			32			(37)			2			—			(24)

Net (charge-offs)/recoveries:
Charge-offs	—			(9)			(22)			—			—			—			(31)
Recoveries	—			—			1			—			1			—			2
Net (charge-offs)/recoveries	—			(9)			(21)			—			1			—			(29)
Foreign exchange translation adjustment	—			—			(1)			—			—			—			(1)
Balance at end of period	$	5		$	121		$	192		$	15		$	64		$	1		$	398

ACL by loan portfolio segment as a % of total ACL	1.3		%	30.3		%	48.2		%	3.8		%	16.1		%	0.3		%	100.0		%

Three months ended June 30, 2025
Balance at beginning of period	$	7		$	171		$	181		$	32		$	60		$	1		$	452



Provision/(benefit) for credit losses	(1)			12			(1)			4			1			—			15

Net (charge-offs)/recoveries:
Charge-offs	—			(4)			—			—			—			—			(4)
Recoveries	—			1			—			—			—			—			1
Net charge-offs	—			(3)			—			—			—			—			(3)
Foreign exchange translation adjustment	—			1			—			—			—			—			1
Balance at end of period	$	6		$	181		$	180		$	36		$	61		$	1		$	465

Nine months ended June 30, 2025
Balance at beginning of period	$	6		$	173		$	188		$	23		$	65		$	2		$	457



Provision/(benefit) for credit losses	—			23			—			13			(4)			(1)			31

Net (charge-offs)/recoveries:
Charge-offs	—			(17)			(8)			—			—			—			(25)
Recoveries	—			2			1			—			—			—			3
Net charge-offs	—			(15)			(7)			—			—			—			(22)
Foreign exchange translation adjustment	—			—			(1)			—			—			—			(1)
Balance at end of period	$	6		$	181		$	180		$	36		$	61		$	1		$	465

ACL by loan portfolio segment as a % of total ACL	1.3		%	39.0		%	38.7		%	7.7		%	13.1		%	0.2		%	100.0		%

(1) During the nine months ended June 30, 2026, a certain loan and the associated allowance was reassigned from the REIT loan portfolio to the CRE loan portfolio based on changes in the loan characteristics during the period.