Annual report [Section 13 and 15(d), not S-K Item 405]

Business Segment Information

v3.25.0.1
Business Segment Information
 12 Months Ended
Dec. 31, 2024
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. The segments are managed by the Corporation’s Management Team, with certain leaders responsible for each segment and/or the lines of business supporting the segments. On a continual basis, the Management Team assesses the performance of the segments by comparing the segments’ budgeted income and expenses to their actual results. The Chief Operating Decision Maker of the segments, which is the Corporation’s CEO, is the final approver on the amount of capital to allocate to each segment.
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. All Other includes income tax benefit adjustments to eliminate the FTE treatment of certain tax credits recorded in Global Banking and Global Markets.
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.
The segment noninterest expenses consist of the same expenses as those shown in the Consolidated Statement of Income and contain both direct expenses and certain expenses not directly attributable to a specific business segment, including indirect compensation and benefits expenses, that are allocated to the segments. The costs of certain centralized or shared functions are allocated based on methodologies that reflect utilization.
The following table 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 2024, 2023 and 2022, and total assets at December 31, 2024 and 2023 for each business segment, as well as All Other.
Results of Business Segments and All Other (1)
At and for the year ended December 31
Total Corporation (2)
Consumer Banking
(Dollars in millions) 2024 2023 2022 2024 2023 2022
Net interest income $ 56,679  $ 57,498  $ 52,900  $ 33,078  $ 33,689  $ 30,045 
Noninterest income 45,827  41,650  42,488  8,358  8,342  8,590 
Total revenue, net of interest expense 102,506  99,148  95,388  41,436  42,031  38,635 
Provision for credit losses 5,821  4,394  2,543  4,987  5,158  1,980 
Noninterest expense
Compensation and benefits (3)
40,182  38,330  36,447  6,422  6,490  6,218 
Other noninterest expense 26,630  27,515  24,991  15,682  14,926  13,859 
Total noninterest expense 66,812  65,845  61,438  22,104  21,416  20,077 
Income before income taxes 29,873  28,909  31,407  14,345  15,457  16,578 
Income tax expense 2,741  2,394  3,879  3,586  3,864  4,062 
Net income $ 27,132  $ 26,515  $ 27,528  $ 10,759  $ 11,593  $ 12,516 
Year-end total assets $ 3,261,519  $ 3,180,151  $ 1,034,370  $ 1,049,830 
Global Wealth & Investment Management Global Banking
2024 2023 2022 2024 2023 2022
Net interest income $ 6,969  $ 7,147  $ 7,466  $ 13,235  $ 14,645  $ 12,184 
Noninterest income 15,960  13,958  14,282  10,723  10,151  10,045 
Total revenue, net of interest expense 22,929  21,105  21,748  23,958  24,796  22,229 
Provision for credit losses 4  6  66  883  (586) 641 
Noninterest expense
Compensation and benefits (3)
11,126  10,120  9,922  4,327  4,134  4,092 
Other noninterest expense 6,115  5,716  5,568  7,526  7,210  6,874 
Total noninterest expense 17,241  15,836  15,490  11,853  11,344  10,966 
Income before income taxes 5,684  5,263  6,192  11,222  14,038  10,622 
Income tax expense 1,421  1,316  1,517  3,086  3,790  2,815 
Net income $ 4,263  $ 3,947  $ 4,675  $ 8,136  $ 10,248  $ 7,807 
Year-end total assets $ 338,367  $ 344,626  $ 670,905  $ 621,751 
  Global Markets All Other
  2024 2023 2022 2024 2023 2022
Net interest income $ 3,375  $ 1,678  $ 3,088  $ 22  $ 339  $ 117 
Noninterest income 18,437  17,849  15,050  (7,651) (8,650) (5,479)
Total revenue, net of interest expense 21,812  19,527  18,138  (7,629) (8,311) (5,362)
Provision for credit losses (32) (131) 28  (21) (53) (172)
Noninterest expense
Compensation and benefits (3)
3,550  3,428  3,210  —  —  — 
Other noninterest expense 10,376  9,778  9,210  1,688  4,043  2,485 
Total noninterest expense 13,926  13,206  12,420  1,688  4,043  2,485 
Income (loss) before income taxes 7,918  6,452  5,690  (9,296) (12,301) (7,675)
Income tax expense (benefit) 2,296  1,774  1,508  (7,648) (8,350) (6,023)
Net income (loss) $ 5,622  $ 4,678  $ 4,182  $ (1,648) $ (3,951) $ (1,652)
Year-end total assets $ 876,605  $ 817,588  $ 341,272  $ 346,356 
(1)Segment results are presented on an FTE basis and include additional net interest income and income tax expense, related to tax-exempt securities, of $619 million, $567 million and $438 million in 2024, 2023 and 2022, respectively, as compared to the Consolidated Statement of Income.
(2)There were no material intersegment revenues.
(3)Represents the compensation and benefits directly incurred by each segment.

The table below presents noninterest income and the associated components for 2024, 2023 and 2022, 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) 2024 2023 2022 2024 2023 2022 2024 2023 2022
Fees and commissions:
Card income
Interchange fees $ 4,013  $ 3,983  $ 4,096  $ 3,194  $ 3,157  $ 3,239  $ (20) $ (12) $ 20 
Other card income 2,271  2,071  1,987  2,238  2,107  1,930  61  57  50 
Total card income 6,284  6,054  6,083  5,432  5,264  5,169  41  45  70 
Service charges
Deposit-related fees 4,708  4,382  5,190  2,445  2,317  2,706  44  41  65 
Lending-related fees 1,347  1,302  1,215  —  —  —  53  37  8 
Total service charges 6,055  5,684  6,405  2,445  2,317  2,706  97  78  73 
Investment and brokerage services
Asset management fees 13,875  12,002  12,152  207  197  195  13,668  11,805  11,957 
Brokerage fees 3,891  3,561  3,749  113  111  109  1,570  1,408  1,604 
Total investment and brokerage services
17,766  15,563  15,901  320  308  304  15,238  13,213  13,561 
Investment banking fees
Underwriting income 3,275  2,235  1,970  —  —  —  246  171  189 
Syndication fees 1,221  898  1,070  —  —  —  —  —  — 
Financial advisory services 1,690  1,575  1,783  —  —  —  —  —  — 
Total investment banking fees 6,186  4,708  4,823  —  —  —  246  171  189 
Total fees and commissions 36,291  32,009  33,212  8,197  7,889  8,179  15,622  13,507  13,893 
Market making and similar activities 12,967  12,732  12,075  21  20  10  143  137  102 
Other income (loss) (3,431) (3,091) (2,799) 140  433  401  195  314  287 
Total noninterest income $ 45,827  $ 41,650  $ 42,488  $ 8,358  $ 8,342  $ 8,590  $ 15,960  $ 13,958  $ 14,282 
Global Banking Global Markets All Other
2024 2023 2022 2024 2023 2022 2024 2023 2022
Fees and commissions:
Card income
Interchange fees $ 773  $ 772  $ 767  $ 66  $ 66  $ 66  $ —  $ —  $ 4 
Other card income 13  9  7  —  —  —  (41) (102) — 
Total card income 786  781  774  66  66  66  (41) (102) 4 
Service charges
Deposit-related fees 2,128  1,943  2,310  88  79  101  3  2  8 
Lending-related fees 1,007  1,009  983  287  256  224  —  —  — 
Total service charges 3,135  2,952  3,293  375  335  325  3  2  8 
Investment and brokerage services
Asset management fees —  —  —  —  —  —  —  —  — 
Brokerage fees 91  57  42  2,128  1,993  2,002  (11) (8) (8)
Total investment and brokerage services
91  57  42  2,128  1,993  2,002  (11) (8) (8)
Investment banking fees
Underwriting income 1,305  922  796  1,892  1,298  1,176  (168) (156) (191)
Syndication fees 644  505  565  577  393  505  —  —  — 
Financial advisory services 1,504  1,392  1,643  186  183  139  —  —  1 
Total investment banking fees 3,453  2,819  3,004  2,655  1,874  1,820  (168) (156) (190)
Total fees and commissions 7,465  6,609  7,113  5,224  4,268  4,213  (217) (264) (186)
Market making and similar activities 275  190  215  12,778  13,430  11,406  (250) (1,045) 342 
Other income (loss) 2,983  3,352  2,717  435  151  (569) (7,184) (7,341) (5,635)
Total noninterest income $ 10,723  $ 10,151  $ 10,045  $ 18,437  $ 17,849  $ 15,050  $ (7,651) $ (8,650) $ (5,479)