Quarterly report pursuant to Section 13 or 15(d)

Business Segment Information

v3.8.0.1
Business Segment Information
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Business Segment Information
Business Segment Information
The Corporation reports its results of operations through the following four business segments: Consumer Banking, GWIM, Global Banking and Global Markets, with the remaining operations recorded in All Other. For additional information, see Note 23 – Business Segment Information to the Consolidated Financial Statements of the Corporation’s 2017 Annual Report on Form 10-K. The following tables present net income (loss) and the components thereto (with net interest income on an FTE basis) for the three months ended March 31, 2018 and 2017 and total assets at March 31, 2018 and 2017 for each business segment, as well as All Other, including 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.
 
 
 
 
 
 
 
 
 
Results of Business Segments and All Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At and for the three months ended March 31
Total Corporation (1)
 
Consumer Banking
 
Global Wealth &
Investment Management
(Dollars in millions)
2018
2017
 
2018
2017
 
2018
2017
Net interest income (FTE basis)
$
11,758

$
11,255

 
$
6,510

$
5,781

 
$
1,594

$
1,560

Noninterest income
11,517

11,190

 
2,522

2,503

 
3,262

3,032

Total revenue, net of interest expense (FTE basis)
23,275

22,445

 
9,032

8,284

 
4,856

4,592

Provision for credit losses
834

835

 
935

838

 
38

23

Noninterest expense
13,897

14,093

 
4,480

4,410

 
3,428

3,329

Income before income taxes (FTE basis)
8,544

7,517

 
3,617

3,036

 
1,390

1,240

Income tax expense (FTE basis)
1,626

2,180

 
922

1,144

 
355

467

Net income
$
6,918

$
5,337

 
$
2,695

$
1,892

 
$
1,035

$
773

Period-end total assets
$
2,328,478

$
2,247,794

 
$
774,256

$
734,087

 
$
279,331

$
291,177

 
 
 
 
 
 
 
 
 
 
Global Banking
 
Global Markets
 
All Other
 
2018
2017
 
2018
2017
 
2018
2017
Net interest income (FTE basis)
$
2,640

$
2,602

 
$
870

$
1,049

 
$
144

$
263

Noninterest income (loss)
2,294

2,353

 
3,916

3,659

 
(477
)
(357
)
Total revenue, net of interest expense (FTE basis)
4,934

4,955

 
4,786

4,708

 
(333
)
(94
)
Provision for credit losses
16

17

 
(3
)
(17
)
 
(152
)
(26
)
Noninterest expense
2,195

2,163

 
2,818

2,757

 
976

1,434

Income (loss) before income taxes (FTE basis)
2,723

2,775

 
1,971

1,968

 
(1,157
)
(1,502
)
Income tax expense (benefit) (FTE basis)
707

1,046

 
513

671

 
(871
)
(1,148
)
Net income (loss)
$
2,016

$
1,729

 
$
1,458

$
1,297

 
$
(286
)
$
(354
)
Period-end total assets
$
424,134

$
416,763

 
$
648,605

$
604,014

 
$
202,152

$
201,753


 
 
 
 
 
Business Segment Reconciliations
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31
 
 
2018
 
2017
Segments’ total revenue, net of interest expense (FTE basis)
 
$
23,608

 
$
22,539

Adjustments (2):
 
 

 
 

ALM activities
 
116

 
(45
)
Liquidating businesses and other
 
(449
)
 
(49
)
FTE basis adjustment
 
(150
)
 
(197
)
Consolidated revenue, net of interest expense
 
$
23,125

 
$
22,248

Segments’ total net income
 
7,204

 
5,691

Adjustments, net-of-taxes (2):
 
 

 
 

ALM activities
 
(54
)
 
(179
)
Liquidating businesses and other
 
(232
)
 
(175
)
Consolidated net income
 
$
6,918

 
$
5,337

 
 
 
 
 
 
 
March 31
 
 
2018
 
2017
Segments’ total assets
 
$
2,126,326

 
$
2,046,041

Adjustments (2):
 
 

 
 

ALM activities, including securities portfolio
 
659,849

 
633,028

Liquidating businesses and other (3)
 
85,631

 
112,153

Elimination of segment asset allocations to match liabilities
 
(543,328
)
 
(543,428
)
Consolidated total assets
 
$
2,328,478

 
$
2,247,794


(1) 
There were no material intersegment revenues.
(2) 
Adjustments include consolidated income, expense and asset amounts not specifically allocated to individual business segments.
(3) 
At March 31, 2017, includes assets of the non-U.S. consumer credit card business which were included in assets of business held for sale on the Consolidated Balance Sheet.

The table below presents noninterest income and the components thereto for the three months ended March 31, 2018 and 2017 for each business segment, as well as All Other. For additional information, see Note 1 – Summary of Significant Accounting Principles and Note 2 – Noninterest Income.
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest Income by Business Segment and All Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Corporation
 
Consumer Banking
 
Global Wealth &
Investment Management
 
Three Months Ended March 31
(Dollars in millions)
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Card income
 
 
 
 
 
 
 
 
 
 
 
Interchange fees
$
971

 
$
958

 
$
804

 
$
784

 
$
11

 
$
26

Other card income
486

 
491

 
475

 
440

 
10

 
10

Total card income
1,457

 
1,449

 
1,279

 
1,224

 
21

 
36

Service charges
 
 
 
 
 
 
 
 
 
 
 
Deposit-related fees
1,646

 
1,653

 
1,044

 
1,050

 
19

 
20

Lending-related fees
275

 
265

 

 

 

 

Total service charges
1,921

 
1,918

 
1,044

 
1,050

 
19

 
20

Investment and brokerage services
 
 
 
 
 
 
 
 
 
 
 
Asset management fees
2,564

 
2,200

 
36

 
33

 
2,528

 
2,167

Brokerage fees
1,100

 
1,217

 
46

 
49

 
512

 
624

Total investment and brokerage services
3,664

 
3,417

 
82

 
82

 
3,040

 
2,791

Investment banking income
 
 
 
 
 
 
 
 
 
 
 
Underwriting income
740

 
779

 

 

 
84

 
51

Syndication fees
316

 
400

 

 

 

 

Financial advisory services
297

 
405

 

 

 

 

Total investment banking income
1,353

 
1,584

 

 

 
84

 
51

Trading account profits
2,699

 
2,331

 
2

 

 
29

 
59

Other income
423

 
491

 
115

 
147

 
69

 
75

Total noninterest income
$
11,517

 
$
11,190

 
$
2,522

 
$
2,503

 
$
3,262

 
$
3,032

 
 
 
 
 
 
 
 
 
 
 
 
 
Global Banking
 
Global Markets
 
All Other
 
Three Months Ended March 31
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Card income
 
 
 
 
 
 
 
 
 
 
 
Interchange fees
$
134

 
$
121

 
$
22

 
$
22

 
$

 
$
5

Other card income
1

 
4

 

 

 

 
37

Total card income
135

 
125

 
22

 
22

 

 
42

Service charges
 
 
 
 
 
 
 
 
 
 
 
Deposit-related fees
538

 
544

 
40

 
33

 
5

 
6

Lending-related fees
225

 
221

 
50

 
44

 

 

Total service charges
763

 
765

 
90

 
77

 
5

 
6

Investment and brokerage services
 
 
 
 
 
 
 
 
 
 
 
Asset management fees

 

 

 

 

 

Brokerage fees (1)
25

 
17

 
488

 
531

 
29

 
(4
)
Total investment and brokerage services
25

 
17

 
488

 
531

 
29

 
(4
)
Investment banking income
 
 
 
 
 
 
 
 
 
 
 
Underwriting income (1)
161

 
150

 
579

 
636

 
(84
)
 
(58
)
Syndication fees
298

 
379

 
18

 
21

 

 

Financial advisory services
285

 
396

 
12

 
9

 

 

Total investment banking income
744

 
925

 
609

 
666

 
(84
)
 
(58
)
Trading account profits
61

 
32

 
2,703

 
2,177

 
(96
)
 
63

Other income
566

 
489

 
4

 
186

 
(331
)
 
(406
)
Total noninterest income
$
2,294

 
$
2,353

 
$
3,916

 
$
3,659

 
$
(477
)
 
$
(357
)
(1) 
All Other Includes eliminations of intercompany transactions.