Quarterly report pursuant to Section 13 or 15(d)

Business Segment Information

v3.10.0.1
Business Segment Information
9 Months Ended
Sep. 30, 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 and nine months ended September 30, 2018 and 2017 and total assets at September 30, 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 September 30
Total Corporation (1)
 
Consumer Banking
 
Global Wealth &
Investment Management
(Dollars in millions)
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Net interest income (FTE basis)
$
12,021

 
$
11,401

 
$
6,863

 
$
6,212

 
$
1,536

 
$
1,496

Noninterest income
10,907

 
10,678

 
2,540

 
2,562

 
3,247

 
3,124

Total revenue, net of interest expense (FTE basis)
22,928

 
22,079

 
9,403

 
8,774

 
4,783

 
4,620

Provision for credit losses
716

 
834

 
870

 
967

 
13

 
16

Noninterest expense
13,067

 
13,394

 
4,355

 
4,461

 
3,414

 
3,369

Income before income taxes (FTE basis)
9,145

 
7,851

 
4,178

 
3,346

 
1,356

 
1,235

Income tax expense (FTE basis)
1,978

 
2,427

 
1,065

 
1,260

 
346

 
465

Net income
$
7,167

 
$
5,424

 
$
3,113

 
$
2,086

 
$
1,010

 
$
770

Period-end total assets
$
2,338,833

 
$
2,284,174

 
$
765,497

 
$
742,513

 
$
276,146

 
$
276,187

 
 
 
 
 
 
 
 
 
 
 
 
 
Global Banking
 
Global Markets
 
All Other
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Net interest income (FTE basis)
$
2,706

 
$
2,642

 
$
754

 
$
899

 
$
162

 
$
152

Noninterest income (loss)
2,032

 
2,345

 
3,089

 
3,002

 
(1
)
 
(355
)
Total revenue, net of interest expense (FTE basis)
4,738

 
4,987

 
3,843

 
3,901

 
161

 
(203
)
Provision for credit losses
(70
)
 
48

 
(2
)
 
(6
)
 
(95
)
 
(191
)
Noninterest expense
2,120

 
2,119

 
2,612

 
2,711

 
566

 
734

Income (loss) before income taxes (FTE basis)
2,688

 
2,820

 
1,233

 
1,196

 
(310
)
 
(746
)
Income tax expense (benefit) (FTE basis)
699

 
1,062

 
321

 
440

 
(453
)
 
(800
)
Net income
$
1,989

 
$
1,758

 
$
912

 
$
756

 
$
143

 
$
54

Period-end total assets
$
430,846

 
$
423,185

 
$
646,359

 
$
629,222

 
$
219,985

 
$
213,067

(1) 
There were no material intersegment revenues.
 
 
 
 
 
 
 
 
 
 
 
 
Results of Business Segments and All Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At and for the nine months ended September 30
Total Corporation (1)
 
Consumer Banking
 
Global Wealth &
Investment Management
(Dollars in millions)
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Net interest income (FTE basis)
$
35,583

 
$
33,879

 
$
19,993

 
$
17,953

 
$
4,673

 
$
4,653

Noninterest income
33,383

 
33,711

 
7,653

 
7,614

 
9,675

 
9,254

Total revenue, net of interest expense (FTE basis)
68,966

 
67,590

 
27,646

 
25,567

 
14,348

 
13,907

Provision for credit losses
2,377

 
2,395

 
2,749

 
2,639

 
63

 
50

Noninterest expense
40,248

 
41,469

 
13,231

 
13,286

 
10,235

 
10,085

Income before income taxes (FTE basis)
26,341

 
23,726

 
11,666

 
9,642

 
4,050

 
3,772

Income tax expense (FTE basis)
5,472

 
7,859

 
2,975

 
3,636

 
1,033

 
1,422

Net income
$
20,869

 
$
15,867

 
$
8,691

 
$
6,006

 
$
3,017

 
$
2,350

Period-end total assets
$
2,338,833

 
$
2,284,174

 
$
765,497

 
$
742,513

 
$
276,146

 
$
276,187

 
 
 
 
 
 
 
 
 
 
 
 
 
Global Banking
 
Global Markets
 
All Other
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Net interest income (FTE basis)
$
8,057

 
$
7,786

 
$
2,425

 
$
2,812

 
$
435

 
$
675

Noninterest income (loss)
6,537

 
7,194

 
10,425

 
9,743

 
(907
)
 
(94
)
Total revenue, net of interest expense (FTE basis)
14,594

 
14,980

 
12,850

 
12,555

 
(472
)
 
581

Provision for credit losses
(77
)
 
80

 
(6
)
 
2

 
(352
)
 
(376
)
Noninterest expense
6,471

 
6,435

 
8,145

 
8,117

 
2,166

 
3,546

Income (loss) before income taxes (FTE basis)
8,200

 
8,465

 
4,711

 
4,436

 
(2,286
)
 
(2,589
)
Income tax expense (benefit) (FTE basis)
2,132

 
3,192

 
1,225

 
1,553

 
(1,893
)
 
(1,944
)
Net income (loss)
$
6,068

 
$
5,273

 
$
3,486

 
$
2,883

 
$
(393
)
 
$
(645
)
Period-end total assets
$
430,846

 
$
423,185

 
$
646,359

 
$
629,222

 
$
219,985

 
$
213,067

(1) 
There were no material intersegment revenues.
 
 
 
 
 
 
 
 
Business Segment Reconciliations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2018
 
2017
 
2018
 
2017
Segments’ total revenue, net of interest expense (FTE basis)
$
22,767

 
$
22,282

 
$
69,438

 
$
67,009

Adjustments (1):
 

 
 

 
 
 
 
ALM activities
273

 
273

 
118

 
332

Liquidating businesses, eliminations and other
(112
)
 
(476
)
 
(590
)
 
249

FTE basis adjustment
(151
)
 
(240
)
 
(455
)
 
(674
)
Consolidated revenue, net of interest expense
$
22,777

 
$
21,839

 
$
68,511

 
$
66,916

Segments’ total net income
7,024

 
5,370

 
21,262

 
16,512

Adjustments, net-of-taxes (1):
 

 
 

 
 
 
 
ALM activities
88

 
57

 
(294
)
 
(208
)
Liquidating businesses, eliminations and other
55

 
(3
)
 
(99
)
 
(437
)
Consolidated net income
$
7,167

 
$
5,424

 
$
20,869

 
$
15,867

 
 
 
 
 
 
 
 
 
 
 
 
 
September 30
 
 
 
 
 
2018
 
2017
Segments’ total assets
 
 
 
 
$
2,118,848

 
$
2,071,107

Adjustments (1):
 
 
 
 
 

 
 

ALM activities, including securities portfolio
 
 
 
 
675,886

 
635,353

Elimination of segment asset allocations to match liabilities
 
 
 
 
(531,297
)
 
(515,007
)
Other
 
 
 
 
75,396

 
92,721

Consolidated total assets
 
 
 
 
$
2,338,833

 
$
2,284,174


(1) 
Adjustments include consolidated income, expense and asset amounts not specifically allocated to individual business segments.
The tables below present noninterest income and the components thereto for the three and nine months ended September 30, 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 September 30
(Dollars in millions)
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Card income
 
 
 
 
 
 
 
 
 
 
 
Interchange fees
$
978

 
$
941

 
$
802

 
$
768

 
$
22

 
$
29

Other card income
492

 
488

 
479

 
475

 
11

 
11

Total card income
1,470

 
1,429

 
1,281

 
1,243

 
33

 
40

Service charges
 
 
 
 
 
 
 
 
 
 
 
Deposit-related fees
1,682

 
1,691

 
1,098

 
1,082

 
19

 
19

Lending-related fees
279

 
277

 

 

 

 

Total service charges
1,961

 
1,968

 
1,098

 
1,082

 
19

 
19

Investment and brokerage services
 
 
 
 
 
 
 
 
 
 
 
Asset management fees
2,576

 
2,367

 
38

 
34

 
2,538

 
2,333

Brokerage fees
918

 
1,070

 
42

 
40

 
466

 
521

Total investment and brokerage services
3,494

 
3,437

 
80

 
74

 
3,004

 
2,854

Investment banking income
 
 
 
 
 
 
 
 
 
 
 
Underwriting income
701

 
698

 

 

 
87

 
100

Syndication fees
241

 
405

 

 

 

 

Financial advisory services
262

 
374

 

 

 
1

 

Total investment banking income
1,204

 
1,477

 

 

 
88

 
100

Trading account profits
1,893

 
1,837

 
2

 
1

 
24

 
29

Other income
885

 
530

 
79

 
162

 
79

 
82

Total noninterest income
$
10,907

 
$
10,678

 
$
2,540

 
$
2,562

 
$
3,247

 
$
3,124

 
 
 
 
 
 
 
 
 
 
 
 
 
Global Banking
 
Global Markets
 
All Other (1)
 
Three Months Ended September 30
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Card income
 
 
 
 
 
 
 
 
 
 
 
Interchange fees
$
130

 
$
122

 
$
24

 
$
22

 
$

 
$

Other card income
2

 
2

 
(1
)
 

 
1

 

Total card income
132

 
124

 
23

 
22

 
1

 

Service charges
 
 
 
 
 
 
 
 
 
 
 
Deposit-related fees
520

 
546

 
41

 
38

 
4

 
6

Lending-related fees
234

 
230

 
45

 
47

 

 

Total service charges
754

 
776

 
86

 
85

 
4

 
6

Investment and brokerage services
 
 
 
 
 
 
 
 
 
 
 
Asset management fees

 

 

 

 

 

Brokerage fees
28

 
18

 
388

 
496

 
(6
)
 
(5
)
Total investment and brokerage services
28

 
18

 
388

 
496

 
(6
)
 
(5
)
Investment banking income
 
 
 
 
 
 
 
 
 
 
 
Underwriting income
189

 
105

 
474

 
545

 
(49
)
 
(52
)
Syndication fees
217

 
380

 
25

 
26

 
(1
)
 
(1
)
Financial advisory services
237

 
321

 
24

 
53

 

 

Total investment banking income
643

 
806

 
523

 
624

 
(50
)
 
(53
)
Trading account profits
59

 
(5
)
 
1,727

 
1,714

 
81

 
98

Other income
416

 
626

 
342

 
61

 
(31
)
 
(401
)
Total noninterest income
$
2,032

 
$
2,345

 
$
3,089

 
$
3,002

 
$
(1
)
 
$
(355
)
(1) 
All Other includes eliminations of intercompany transactions.

 
 
 
 
 
 
 
 
 
 
 
 
Noninterest Income by Business Segment and All Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Corporation
 
Consumer Banking
 
Global Wealth &
Investment Management
 
Nine Months Ended September 30
(Dollars in millions)
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Card income
 
 
 
 
 
 
 
 
 
 
 
Interchange fees
$
3,018

 
$
2,883

 
$
2,488

 
$
2,352

 
$
59

 
$
79

Other card income
1,451

 
1,464

 
1,414

 
1,364

 
33

 
31

Total card income
4,469

 
4,347

 
3,902

 
3,716

 
92

 
110

Service charges
 
 
 
 
 
 
 
 
 
 
 
Deposit-related fees
5,009

 
5,040

 
3,214

 
3,194

 
55

 
57

Lending-related fees
827

 
823

 

 

 

 

Total service charges
5,836

 
5,863

 
3,214

 
3,194

 
55

 
57

Investment and brokerage services
 
 
 
 
 
 
 
 
 
 
 
Asset management fees
7,652

 
6,855

 
111

 
98

 
7,541

 
6,757

Brokerage fees
2,964

 
3,459

 
131

 
135

 
1,440

 
1,717

Total investment and brokerage services
10,616

 
10,314

 
242

 
233

 
8,981

 
8,474

Investment banking income
 
 
 
 
 
 
 
 
 
 
 
Underwriting income
2,160

 
2,185

 

 

 
243

 
246

Syndication fees
958

 
1,146

 

 

 

 

Financial advisory services
861

 
1,262

 

 

 
1

 
1

Total investment banking income
3,979

 
4,593

 

 

 
244

 
247

Trading account profits
6,907

 
6,124

 
6

 
2

 
81

 
120

Other income
1,576

 
2,470

 
289

 
469

 
222

 
246

Total noninterest income
$
33,383

 
$
33,711

 
$
7,653

 
$
7,614

 
$
9,675

 
$
9,254

 
 
 
 
 
 
 
 
 
 
 
 
 
Global Banking
 
Global Markets
 
All Other (1)
 
Nine Months Ended September 30
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Card income
 
 
 
 
 
 
 
 
 
 
 
Interchange fees
$
400

 
$
375

 
$
71

 
$
68

 
$

 
$
9

Other card income
5

 
8

 
(1
)
 
(1
)
 

 
62

Total card income
405

 
383

 
70

 
67

 

 
71

Service charges
 
 
 
 
 
 
 
 
 
 
 
Deposit-related fees
1,598

 
1,662

 
126

 
111

 
16

 
16

Lending-related fees
687

 
689

 
140

 
134

 

 

Total service charges
2,285

 
2,351

 
266

 
245

 
16

 
16

Investment and brokerage services
 
 
 
 
 
 
 
 
 
 
 
Asset management fees

 

 

 

 

 

Brokerage fees
71

 
72

 
1,306

 
1,548

 
16

 
(13
)
Total investment and brokerage services
71

 
72

 
1,306

 
1,548

 
16

 
(13
)
Investment banking income
 
 
 
 
 
 
 
 
 
 
 
Underwriting income
458

 
404

 
1,637

 
1,729

 
(178
)
 
(194
)
Syndication fees
890

 
1,080

 
68

 
66

 

 

Financial advisory services
782

 
1,177

 
78

 
84

 

 

Total investment banking income
2,130

 
2,661

 
1,783

 
1,879

 
(178
)
 
(194
)
Trading account profits
184

 
82

 
6,614

 
5,634

 
22

 
286

Other income
1,462

 
1,645

 
386

 
370

 
(783
)
 
(260
)
Total noninterest income
$
6,537

 
$
7,194

 
$
10,425

 
$
9,743

 
$
(907
)
 
$
(94
)
(1) 
All Other includes eliminations of intercompany transactions.