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## Interest rates and interest differential analysis of net interest income – U.S. and non-U.S. 

Presented below is a summary of interest rates and interest differentials segregated between U.S. and non-U.S. operations for the years 2016 through 2018. The segregation of U.S. and non-U.S. components is based on 

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the location of the office recording the transaction. Intercompany funding generally consists of dollar-denominated deposits originated in various locations that are centrally managed by Treasury and CIO. 

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Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and, accordingly, prior period amounts were revised. For additional information, refer to Note 1. 

(a) Includes commercial paper. (b) 

Represents the amount of noninterest-bearing liabilities funding interest-earning assets. (c) 

Negative interest income and yield is related to client-driven demand for certain securities combined with the impact of low interest rates; this is matched book activity and the negative interest expense on the corresponding securities loaned is recognized in interest expense and reported within trading liabilities – debt, short-term and all other interest-bearing liabilities. 

