Annual report pursuant to Section 13 and 15(d)

Business Segment Information

v3.24.0.1
Business Segment Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
The Corporation reports its results of operations through the following four business segments: Consumer Banking, Global Wealth & Investment Management, Global Banking and Global Markets, with the remaining operations recorded in All Other.
Consumer Banking
Consumer Banking offers a diversified range of credit, banking and investment products and services to consumers and small businesses. Consumer Banking product offerings include traditional savings accounts, money market savings accounts, CDs and IRAs, checking accounts, and investment accounts and products, as well as credit and debit cards, residential mortgages and home equity loans, and direct and indirect loans to consumers and small businesses in the U.S. Consumer Banking includes the impact of servicing residential mortgages and home equity loans.
Global Wealth & Investment Management
GWIM provides a high-touch client experience through a network of financial advisors focused on clients with over $250,000 in total investable assets, including tailored solutions to meet clients’ needs through a full set of investment management, brokerage, banking and retirement products. GWIM also provides comprehensive wealth management solutions targeted to high net worth and ultra high net worth clients, as well as customized solutions to meet clients’ wealth structuring, investment management, trust and banking needs, including specialty asset management services.
Global Banking
Global Banking provides a wide range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services through the Corporation’s network of offices and client relationship teams. Global Banking also provides investment banking products to clients. The economics of certain investment banking and underwriting activities are shared primarily between Global Banking and Global Markets under an internal revenue-sharing arrangement. Global Banking clients generally include middle-market companies, commercial real estate firms, not-for-profit companies, large global corporations, financial institutions, leasing clients, and mid-sized U.S.-based businesses requiring customized and integrated financial advice and solutions.
Global Markets
Global Markets offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity and equity businesses. Global Markets provides market-making, financing, securities clearing, settlement and custody services globally to institutional investor clients in support of their investing and trading activities. Global Markets product coverage includes securities and derivative products in both the primary and secondary markets. Global Markets also works with commercial and corporate clients to provide risk management products. As a result of market-making activities, Global Markets may be required to manage risk in a broad range of financial products. In addition, the economics of certain investment banking and underwriting activities are shared primarily between Global Markets and Global Banking under an internal revenue-sharing arrangement.
All Other
All Other primarily consists of ALM activities, liquidating businesses and certain expenses not otherwise allocated to a business segment. ALM activities encompass interest rate and foreign currency risk management activities for which substantially all of the results are allocated to the business segments.
Basis of Presentation
The management accounting and reporting process derives segment and business results by utilizing allocation methodologies for revenue and expense. The net income derived for the businesses is dependent upon revenue and cost allocations using an activity-based costing model, funds transfer pricing, and other methodologies and assumptions management believes are appropriate to reflect the results of the business.
Total revenue, net of interest expense, includes net interest income on an FTE basis and noninterest income. The adjustment of net interest income to an FTE basis results in a corresponding increase in income tax expense. The segment results also reflect certain revenue and expense methodologies
that are utilized to determine net income. The net interest income of the businesses includes the results of a funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics. In segments where the total of liabilities and equity exceeds assets, which are generally deposit-taking segments, the Corporation allocates assets to match liabilities. Net interest income of the business segments also includes an allocation of net interest income generated by certain of the Corporation’s ALM activities.
The Corporation’s ALM activities include an overall interest rate risk management strategy that incorporates the use of various derivatives and cash instruments to manage fluctuations in earnings and capital that are caused by interest rate volatility. The Corporation’s goal is to manage interest rate sensitivity so that movements in interest rates do not significantly adversely affect earnings and capital. The results of
a majority of the Corporation’s ALM activities are allocated to the business segments and fluctuate based on the performance of the ALM activities. ALM activities include external product pricing decisions including deposit pricing strategies, the effects of the Corporation’s internal funds transfer pricing process and the net effects of other ALM activities.
Certain expenses not directly attributable to a specific business segment are allocated to the segments. The costs of certain centralized or shared functions are allocated based on methodologies that reflect utilization.
The table below presents net income (loss) and the components thereto (with net interest income on an FTE basis for the business segments, All Other and the total Corporation) for 2023, 2022 and 2021, and total assets at December 31, 2023, 2022 and 2021 for each business segment, as well as All Other.
Results of Business Segments and All Other
At and for the year ended December 31
Total Corporation (1)
Consumer Banking
(Dollars in millions) 2023 2022 2021 2023 2022 2021
Net interest income $ 57,498  $ 52,900  $ 43,361  $ 33,689  $ 30,045  $ 24,929 
Noninterest income 41,650  42,488  46,179  8,342  8,590  9,076 
Total revenue, net of interest expense 99,148  95,388  89,540  42,031  38,635  34,005 
Provision for credit losses 4,394  2,543  (4,594) 5,158  1,980  (1,035)
Noninterest expense 65,845  61,438  59,731  21,416  20,077  19,290 
Income before income taxes 28,909  31,407  34,403  15,457  16,578  15,750 
Income tax expense 2,394  3,879  2,425  3,864  4,062  3,859 
Net income $ 26,515  $ 27,528  $ 31,978  $ 11,593  $ 12,516  $ 11,891 
Year-end total assets $ 3,180,151  $ 3,051,375  $ 1,049,830  $ 1,126,453 
Global Wealth & Investment Management Global Banking
2023 2022 2021 2023 2022 2021
Net interest income $ 7,147  $ 7,466  $ 5,664  $ 14,645  $ 12,184  $ 8,511 
Noninterest income 13,958  14,282  15,084  10,151  10,045  12,364 
Total revenue, net of interest expense 21,105  21,748  20,748  24,796  22,229  20,875 
Provision for credit losses 6  66  (241) (586) 641  (3,201)
Noninterest expense 15,836  15,490  15,258  11,344  10,966  10,632 
Income before income taxes 5,263  6,192  5,731  14,038  10,622  13,444 
Income tax expense 1,316  1,517  1,404  3,790  2,815  3,630 
Net income $ 3,947  $ 4,675  $ 4,327  $ 10,248  $ 7,807  $ 9,814 
Year-end total assets $ 344,626  $ 368,893  $ 621,751  $ 588,466 
  Global Markets All Other
  2023 2022 2021 2023 2022 2021
Net interest income $ 1,678  $ 3,088  $ 4,011  $ 339  $ 117  $ 246 
Noninterest income 17,849  15,050  15,244  (8,650) (5,479) (5,589)
Total revenue, net of interest expense 19,527  18,138  19,255  (8,311) (5,362) (5,343)
Provision for credit losses (131) 28  65  (53) (172) (182)
Noninterest expense 13,206  12,420  13,032  4,043  2,485  1,519 
Income (loss) before income taxes 6,452  5,690  6,158  (12,301) (7,675) (6,680)
Income tax expense (benefit) 1,774  1,508  1,601  (8,350) (6,023) (8,069)
Net income (loss) $ 4,678  $ 4,182  $ 4,557  $ (3,951) $ (1,652) $ 1,389 
Year-end total assets $ 817,588  $ 812,489  $ 346,356  $ 155,074 
(1)There were no material intersegment revenues.
The table below presents noninterest income and the associated components for 2023, 2022, and 2021 for each business segment, All Other and the total Corporation. For more information, see Note 2 – Net Interest Income and Noninterest Income.
Noninterest Income by Business Segment and All Other
Total Corporation Consumer Banking Global Wealth &
Investment Management
(Dollars in millions) 2023 2022 2021 2023 2022 2021 2023 2022 2021
Fees and commissions:
Card income
Interchange fees $ 3,983  $ 4,096  $ 4,560  $ 3,157  $ 3,239  $ 3,597  $ (12) $ 20  $ 43 
Other card income 2,071  1,987  1,658  2,107  1,930  1,575  57  50  42 
Total card income 6,054  6,083  6,218  5,264  5,169  5,172  45  70  85 
Service charges
Deposit-related fees 4,382  5,190  6,271  2,317  2,706  3,538  41  65  72 
Lending-related fees 1,302  1,215  1,233  —  —  —  37  8  — 
Total service charges 5,684  6,405  7,504  2,317  2,706  3,538  78  73  72 
Investment and brokerage services
Asset management fees 12,002  12,152  12,729  197  195  188  11,805  11,957  12,541 
Brokerage fees 3,561  3,749  3,961  111  109  132  1,408  1,604  1,771 
Total investment and brokerage services
15,563  15,901  16,690  308  304  320  13,213  13,561  14,312 
Investment banking fees
Underwriting income 2,235  1,970  5,077  —  —  —  171  189  388 
Syndication fees 898  1,070  1,499  —  —  —  —  —  — 
Financial advisory services 1,575  1,783  2,311  —  —  —  —  —  — 
Total investment banking fees 4,708  4,823  8,887  —  —  —  171  189  388 
Total fees and commissions 32,009  33,212  39,299  7,889  8,179  9,030  13,507  13,893  14,857 
Market making and similar activities 12,732  12,075  8,691  20  10  1  137  102  40 
Other income (loss) (3,091) (2,799) (1,811) 433  401  45  314  287  187 
Total noninterest income $ 41,650  $ 42,488  $ 46,179  $ 8,342  $ 8,590  $ 9,076  $ 13,958  $ 14,282  $ 15,084 
Global Banking Global Markets
All Other (1)
2023 2022 2021 2023 2022 2021 2023 2022 2021
Fees and commissions:
Card income
Interchange fees $ 772  $ 767  $ 700  $ 66  $ 66  $ 220  $ —  $ 4  $ — 
Other card income 9  7  13  —  —  —  (102) —  28 
Total card income 781  774  713  66  66  220  (102) 4  28 
Service charges
Deposit-related fees 1,943  2,310  2,508  79  101  146  2  8  7 
Lending-related fees 1,009  983  1,015  256  224  218  —  —  — 
Total service charges 2,952  3,293  3,523  335  325  364  2  8  7 
Investment and brokerage services
Brokerage fees 57  42  104  1,993  2,002  1,979  (8) (8) (25)
Total investment and brokerage services
57  42  104  1,993  2,002  1,979  (8) (8) (25)
Investment banking fees
Underwriting income 922  796  2,187  1,298  1,176  2,725  (156) (191) (223)
Syndication fees 505  565  781  393  505  718  —  —  — 
Financial advisory services 1,392  1,643  2,139  183  139  173  —  1  (1)
Total investment banking fees 2,819  3,004  5,107  1,874  1,820  3,616  (156) (190) (224)
Total fees and commissions 6,609  7,113  9,447  4,268  4,213  6,179  (264) (186) (214)
Market making and similar activities 190  215  145  13,430  11,406  8,760  (1,045) 342  (255)
Other income (loss) 3,352  2,717  2,772  151  (569) 305  (7,341) (5,635) (5,120)
Total noninterest income $ 10,151  $ 10,045  $ 12,364  $ 17,849  $ 15,050  $ 15,244  $ (8,650) $ (5,479) $ (5,589)
(1)All Other includes eliminations of intercompany transactions.
The table below presents a reconciliation of the four business segments’ total revenue, net of interest expense, on an FTE basis, and net income to the Consolidated Statement of Income, and total assets to the Consolidated Balance Sheet.
Business Segment Reconciliations
(Dollars in millions) 2023 2022 2021
Segments’ total revenue, net of interest expense $ 107,459  $ 100,750  $ 94,883 
Adjustments (1):
     
Asset and liability management activities (2,011) (164) (4)
Liquidating businesses, eliminations and other (6,300) (5,198) (5,339)
FTE basis adjustment (567) (438) (427)
Consolidated revenue, net of interest expense $ 98,581  $ 94,950  $ 89,113 
Segments’ total net income 30,466  29,180  30,589 
Adjustments, net-of-tax (1):
   
Asset and liability management activities (1,550) (122) 11 
Liquidating businesses, eliminations and other (2,401) (1,530) 1,378 
Consolidated net income $ 26,515  $ 27,528  $ 31,978 
December 31
2023 2022
Segments’ total assets $ 2,833,795  $ 2,896,301 
Adjustments (1):
Asset and liability management activities, including securities portfolio 1,255,241  1,133,375 
Elimination of segment asset allocations to match liabilities (972,925) (1,041,793)
Other 64,040  63,492 
Consolidated total assets $ 3,180,151  $ 3,051,375 
(1)Adjustments include consolidated income, expense and asset amounts not specifically allocated to individual business segments.