“Net interest revenues of $2,254 million in Q2 2026 increased 18% compared with the prior year quarter, primarily due to the cumulative impact of lending growth and higher average sweep deposits”

“Deposits are primarily sourced from our Wealth Management clients and are considered to have stable, low-cost funding characteristics relative to other sources of funding”

“Total loans and lending commitments increased by approximately $44 billion since December 31, 2025, primarily due to growth in corporate relationship lending and secured lending facilities within the Institutional Securities business segment and an increase in securities-based loans within the Wealth Management business segment”

“More than 75% of Wealth Management residential real estate loans were to borrowers with Exceptional or Very Good FICO scores exceeding 740 as of June 30, 2026”

“Wealth Management's securities-based lending portfolio remains well-collateralized and subject to daily client margining”

Net interest income increase driver

“Wealth Management net revenues of $8,856 million in the current quarter and $17,375 million in the current year period increased 14% and 15%, respectively, compared with the prior year periods, primarily reflecting higher Asset management revenues on higher market levels and the cumulative impact of positive fee-based flows, increased Net interest income and higher client activity.”

Lending activities description

“Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients.”

Portfolio growth in lending

“The Provision for credit losses on loans and lending commitments of $98 million in the current quarter and $196 million in the current year period was primarily related to certain specific commercial real estate and corporate loans and portfolio growth in corporate loans and secured lending facilities.”