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Contract revenue | 9 Months Ended
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Sep. 30, 2025
Revenue from Contract with Customer [Abstract] |
Contract revenue | Contract revenue Fee and other revenue in the Securities Services, Market and Wealth Services and Investment and Wealth Management business segments is primarily variable, based on levels of assets under custody and/or administration, assets under management and the level of client-driven transactions, as specified in the fee schedules. See Note 10 of the Notes to Consolidated Financial Statements in our 2024 Annual Report for information on the nature of our services and revenue recognition. See Note 24 of the Notes to Consolidated Financial Statements in our 2024 Annual Report for additional information on our principal business segments — Securities Services, Market and Wealth Services and Investment and Wealth Management — and the primary services provided. Disaggregation of contract revenue Contract revenue is included in fee and other revenue on the consolidated income statement. The following tables present fee and other revenue related to contracts with customers, disaggregated by type of fee revenue, for each business segment. Business segment data has been determined on an internal management basis of accounting, rather than GAAP, which is used for consolidated financial reporting.
Disaggregation of contract revenue by business segment |  |  |  |  |  |  |  |  |  |  |  |
| Quarter ended
| Sept. 30, 2025 |  |  |  | Sept. 30, 2024
(in millions) | Securities Services | Market and Wealth Services | Investment and Wealth Management | Other | Total |  |  |  |  |  |  |  | Securities Services | Market and Wealth Services | Investment and Wealth Management | Other | Total
Fee and other revenue – contract revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment services fees | $ | 1,438 |  | $ | 1,109 |  | $ | 25 |  | $ | (16) |  | $ | 2,556 |  |  |  |  |  |  |  |  | $ | 1,296 |  | $ | 1,021 |  | $ | 27 |  | $ | (17) |  | $ | 2,327 |
Investment management and performance fees | — |  | 3 |  | 779 |  | (4) |  | 778 |  |  |  |  |  |  |  |  | — |  | 1 |  | 800 |  | (2) |  | 799 |
Financing-related fees | 18 |  | 11 |  | — |  | — |  | 29 |  |  |  |  |  |  |  |  | 12 |  | 5 |  | — |  | — |  | 17 |
Distribution and servicing fees | 1 |  | (33) |  | 69 |  | — |  | 37 |  |  |  |  |  |  |  |  | 1 |  | (30) |  | 68 |  | — |  | 39 |
Investment and other revenue | 76 |  | 68 |  | (107) |  | (3) |  | 34 |  |  |  |  |  |  |  |  | 65 |  | 63 |  | (95) |  | — |  | 33 |
Total fee and other revenue – contract revenue | 1,533 |  | 1,158 |  | 766 |  | (23) |  | 3,434 |  |  |  |  |  |  |  |  | 1,374 |  | 1,060 |  | 800 |  | (19) |  | 3,215 |
Fee and other revenue – not in scope of Accounting Standards Codification (“ASC”) 606 (a)(b) | 256 |  | 85 |  | 17 |  | 41 |  | 399 |  |  |  |  |  |  |  |  | 231 |  | 70 |  | 4 |  | 73 |  | 378 |
Total fee and other revenue | $ | 1,789 |  | $ | 1,243 |  | $ | 783 |  | $ | 18 |  | $ | 3,833 |  |  |  |  |  |  |  |  | $ | 1,605 |  | $ | 1,130 |  | $ | 804 |  | $ | 54 |  | $ | 3,593 |
(a) Primarily includes investment services fees, foreign exchange revenue, financing-related fees and investment and other revenue, all of which are accounted for using other accounting guidance. (b) The Investment and Wealth Management business segment is net of income attributable to noncontrolling interests related to consolidated investment management funds of $12 million in the third quarter of 2025 and $7 million in the third quarter of 2024.
Disaggregation of contract revenue by business segment | Quarter ended
| June 30, 2025 |  |
(in millions) | Securities Services | Market and Wealth Services | Investment and Wealth Management | Other | Total |  |  |  |  |  |
Fee and other revenue – contract revenue: |  |  |  |  |  |  |  |  |  |  |
Investment services fees | $ | 1,449 |  | $ | 1,099 |  | $ | 26 |  | $ | (18) |  | $ | 2,556 |  |  |  |  |  |  |
Investment management and performance fees | — |  | 3 |  | 754 |  | (3) |  | 754 |  |  |  |  |  |  |
Financing-related fees | 11 |  | 3 |  | 1 |  | — |  | 15 |  |  |  |  |  |  |
Distribution and servicing fees | 1 |  | (34) |  | 69 |  | 1 |  | 37 |  |  |  |  |  |  |
Investment and other revenue | 72 |  | 69 |  | (106) |  | (3) |  | 32 |  |  |  |  |  |  |
Total fee and other revenue – contract revenue | 1,533 |  | 1,140 |  | 744 |  | (23) |  | 3,394 |  |  |  |  |  |  |
Fee and other revenue – not in scope of ASC 606 (a)(b) | 266 |  | 96 |  | 16 |  | 41 |  | 419 |  |  |  |  |  |  |
Total fee and other revenue | $ | 1,799 |  | $ | 1,236 |  | $ | 760 |  | $ | 18 |  | $ | 3,813 |  |  |  |  |  |  |
(a) Primarily includes investment services fees, foreign exchange revenue, financing-related fees and investment and other revenue, all of which are accounted for using other accounting guidance. (b) The Investment and Wealth Management business segment is net of income attributable to noncontrolling interests related to consolidated investment management funds of $12 million in the second quarter of 2025.
Disaggregation of contract revenue by business segment |  |  |  |  |  |  |  |  |
| Year-to-date
| Sept. 30, 2025 |  | Sept. 30, 2024 |  |
(in millions) | Securities Services | Market and Wealth Services | Investment and Wealth Management | Other | Total |  | Securities Services | Market and Wealth Services | Investment and Wealth Management | Other | Total |  |  |  |  |
Fee and other revenue – contract revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment services fees | $ | 4,198 |  | $ | 3,273 |  | $ | 76 |  | $ | (52) |  | $ | 7,495 |  |  | $ | 3,883 |  | $ | 3,022 |  | $ | 76 |  | $ | (52) |  | $ | 6,929 |  |  |  |  |  |
Investment management and performance fees | — |  | 9 |  | 2,281 |  | (10) |  | 2,280 |  |  | — |  | 5 |  | 2,340 |  | (9) |  | 2,336 |  |  |  |  |  |
Financing-related fees | 44 |  | 22 |  | 1 |  | — |  | 67 |  |  | 39 |  | 18 |  | 1 |  | — |  | 58 |  |  |  |  |  |
Distribution and servicing fees | 3 |  | (100) |  | 206 |  | 1 |  | 110 |  |  | 2 |  | (89) |  | 207 |  | 2 |  | 122 |  |  |  |  |  |
Investment and other revenue | 215 |  | 204 |  | (316) |  | (4) |  | 99 |  |  | 184 |  | 184 |  | (277) |  | 1 |  | 92 |  |  |  |  |  |
Total fee and other revenue – contract revenue | 4,460 |  | 3,408 |  | 2,248 |  | (65) |  | 10,051 |  |  | 4,108 |  | 3,140 |  | 2,347 |  | (58) |  | 9,537 |  |  |  |  |  |
Fee and other revenue – not in scope of ASC 606 (a)(b) | 798 |  | 260 |  | 33 |  | 135 |  | 1,226 |  |  | 697 |  | 202 |  | 40 |  | 167 |  | 1,106 |  |  |  |  |  |
Total fee and other revenue | $ | 5,258 |  | $ | 3,668 |  | $ | 2,281 |  | $ | 70 |  | $ | 11,277 |  |  | $ | 4,805 |  | $ | 3,342 |  | $ | 2,387 |  | $ | 109 |  | $ | 10,643 |  |  |  |  |  |
(a) Primarily includes investment services fees, foreign exchange revenue, financing-related fees and investment and other revenue, all of which are accounted for using other accounting guidance. (b) The Investment and Wealth Management business segment is net of income attributable to noncontrolling interests related to consolidated investment management funds of $26 million in the first nine months of 2025 and $11 million in the first nine months of 2024. Contract balances Our clients are billed based on fee schedules that are agreed upon in each customer contract. Receivables from customers were $2.5 billion at Sept. 30, 2025 and $2.5 billion at Dec. 31, 2024. Contract assets represent accrued revenues that have not yet been billed to customers due to certain contractual terms other than the passage of time and were $52 million at Sept. 30, 2025 and $34 million at Dec. 31, 2024. Accrued revenues recorded as contract assets are usually billed on an annual basis. Both receivables from customers and contract assets are included in other assets on the consolidated balance sheet. Contract liabilities represent payments received in advance of providing services under certain contracts and were $198 million at Sept. 30, 2025 and $171 million at Dec. 31, 2024. Contract liabilities are included in other liabilities on the consolidated balance sheet. Revenue recognized in the first nine months of 2025 relating to contract liabilities as of Dec. 31, 2024 was $103 million. Revenue recognized in the third quarter of 2025 relating to contract liabilities as of June 30, 2025 was $73 million. Changes in contract assets and liabilities primarily relate to either party’s performance under the contracts. Contract costs Incremental costs for obtaining contracts that are deemed recoverable are capitalized as contract costs. Such costs result from the payment of sales incentives, primarily in the Wealth Management business, and totaled $47 million at Sept. 30, 2025 and $44 million at Dec. 31, 2024. Capitalized sales incentives are amortized based on the transfer of goods or services to which the assets relate. The amortization of capitalized sales incentives, which is included in staff expense on the consolidated income statement, totaled $3 million in the third quarter of 2025, $4 million in the third quarter of 2024, $4 million in the second quarter of 2025, $10 million in the first nine months of 2025 and $11 million in the first nine months of 2024. Costs to fulfill a contract are capitalized when they relate directly to an existing contract or a specific anticipated contract, generate or enhance resources that will be used to fulfill performance obligations, and are recoverable. Such costs generally represent set-up costs, which include any direct cost incurred at the inception of a contract which enables the fulfillment of the performance obligation, and totaled $120 million at Sept. 30, 2025 and $98 million at Dec. 31, 2024. These capitalized costs are amortized on a straight-line basis over the expected contract period. Unsatisfied performance obligations We do not have any unsatisfied performance obligations other than those that are subject to a practical expedient election under ASC 606, Revenue From Contracts With Customers. The practical expedient election applies to (i) contracts with an original expected length of one year or less, and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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