Quarterly report pursuant to Section 13 or 15(d)

Business Segment Information

v3.20.2
Business Segment Information
 9 Months Ended
Sep. 30, 2020
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. For more information, see Note 24 – Business Segment Information to the Consolidated Financial Statements of the Corporation’s 2019 Annual Report on Form 10-K. The following tables present net income (loss) and the associated components (with net
interest income on an FTE basis for the business segments, All Other and the total Corporation) for the three and nine months ended September 30, 2020 and 2019, and total assets at September 30, 2020 and 2019 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) 2020 2019 2020 2019 2020 2019
Net interest income $ 10,243  $ 12,335  $ 5,890  $ 7,031  $ 1,237  $ 1,609 
Noninterest income 10,207  10,620  2,149  2,693  3,309  3,295 
Total revenue, net of interest expense 20,450  22,955  8,039  9,724  4,546  4,904 
Provision for credit losses 1,389  779  479  917  24  37 
Noninterest expense 14,401  15,169  4,842  4,399  3,530  3,414 
Income before income taxes 4,660  7,007  2,718  4,408  992  1,453 
Income tax expense (221) 1,230  666  1,080  243  356 
Net income $ 4,881  $ 5,777  $ 2,052  $ 3,328  $ 749  $ 1,097 
Period-end total assets $ 2,738,452  $ 2,426,330  $ 947,513  $ 788,814  $ 337,576  $ 288,332 
  Global Banking Global Markets All Other
  2020 2019 2020 2019 2020 2019
Net interest income $ 2,028  $ 2,617  $ 1,108  $ 1,016  $ (20) $ 62 
Noninterest income 2,489  2,595  3,175  2,847  (915) (810)
Total revenue, net of interest expense 4,517  5,212  4,283  3,863  (935) (748)
Provision for credit losses 883  120  21  —  (18) (295)
Noninterest expense 2,365  2,219  3,104  2,677  560  2,460 
Income before income taxes 1,269  2,873  1,158  1,186  (1,477) (2,913)
Income tax expense 343  776  301  338  (1,774) (1,320)
Net income $ 926  $ 2,097  $ 857  $ 848  $ 297  $ (1,593)
Period-end total assets $ 553,776  $ 452,642  $ 676,242  $ 689,029  $ 223,345  $ 207,513 
(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) 2020 2019 2020 2019 2020 2019
Net interest income $ 33,493  $ 37,201  $ 18,743  $ 21,253  $ 4,186  $ 4,917 
Noninterest income 32,322  32,144  6,277  7,820  9,721  9,708 
Total revenue, net of interest expense 65,815  69,345  25,020  29,073  13,907  14,625 
Provision for credit losses 11,267  2,649  5,761  2,838  349  63 
Noninterest expense 41,286  41,661  14,071  13,178  10,593  10,302 
Income before income taxes 13,262  25,035  5,188  13,057  2,965  4,260 
Income tax expense 838  4,599  1,271  3,199  726  1,044 
Net income $ 12,424  $ 20,436  $ 3,917  $ 9,858  $ 2,239  $ 3,216 
Period-end total assets $ 2,738,452  $ 2,426,330  $ 947,513  $ 788,814  $ 337,576  $ 288,332 
  Global Banking Global Markets All Other
  2020 2019 2020 2019 2020 2019
Net interest income $ 7,003  $ 8,116  $ 3,558  $ 2,780  $ 3  $ 135 
Noninterest income 7,205  7,226  11,301  9,409  (2,182) (2,019)
Total revenue, net of interest expense 14,208  15,342  14,859  12,189  (2,179) (1,884)
Provision for credit losses 4,849  356  233  (18) 75  (590)
Noninterest expense 6,910  6,697  8,598  8,109  1,114  3,375 
Income before income taxes 2,449  8,289  6,028  4,098  (3,368) (4,669)
Income tax expense 661  2,238  1,567  1,168  (3,387) (3,050)
Net income $ 1,788  $ 6,051  $ 4,461  $ 2,930  $ 19  $ (1,619)
Period-end total assets $ 553,776  $ 452,642  $ 676,242  $ 689,029  $ 223,345  $ 207,513 
(1)There were no material intersegment revenues.
The tables below present noninterest income and the associated components for the three and nine months ended September 30, 2020 and 2019 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
Three Months Ended September 30
(Dollars in millions) 2020 2019 2020 2019 2020 2019
Fees and commissions:
Card income
Interchange fees $ 1,172  $ 963  $ 840  $ 802  $ 10  $ 13 
Other card income 396  502  381  487  11  12 
Total card income 1,568  1,465  1,221  1,289  21  25 
Service charges
Deposit-related fees 1,515  1,690  837  1,098  18  16 
Lending-related fees 302  285  —  —  —  — 
Total service charges 1,817  1,975  837  1,098  18  16 
Investment and brokerage services
Asset management fees 2,740  2,597  37  36  2,706  2,571 
Brokerage fees 883  897  31  38  399  430 
Total investment and brokerage services
3,623  3,494  68  74  3,105  3,001 
Investment banking fees
Underwriting income 1,239  740  —  —  93  89 
Syndication fees 133  341  —  —  —  — 
Financial advisory services 397  452  —  —  —  — 
Total investment banking fees 1,769  1,533  —  —  93  89 
Total fees and commissions 8,777  8,467  2,126  2,461  3,237  3,131 
Market making and similar activities 1,689  2,118  —  1  13  27 
Other income (loss) (259) 35  23  231  59  137 
Total noninterest income $ 10,207  $ 10,620  $ 2,149  $ 2,693  $ 3,309  $ 3,295 
Global Banking Global Markets
All Other (1)
Three Months Ended September 30
2020 2019 2020 2019 2020 2019
Fees and commissions:
Card income
Interchange fees $ 153  $ 130  $ 169  $ 18  $ —  $ — 
Other card income 3  3  —  —  1  — 
Total card income 156  133  169  18  1  — 
Service charges
Deposit-related fees 597  533  53  38  10  5 
Lending-related fees 248  230  55  54  (1) 1 
Total service charges 845  763  108  92  9  6 
Investment and brokerage services
Asset management fees —  —  —  —  (3) (10)
Brokerage fees 15  9  440  419  (2) 1 
Total investment and brokerage services
15  9  440  419  (5) (9)
Investment banking fees
Underwriting income 536  312  644  382  (34) (43)
Syndication fees 78  163  55  178  —  — 
Financial advisory services 356  427  40  25  1  — 
Total investment banking fees 970  902  739  585  (33) (43)
Total fees and commissions 1,986  1,807  1,456  1,114  (28) (46)
Market making and similar activities 16  85  1,726  1,580  (66) 425 
Other income (loss) 487  703  (7) 153  (821) (1,189)
Total noninterest income $ 2,489  $ 2,595  $ 3,175  $ 2,847  $ (915) $ (810)
(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) 2020 2019 2020 2019 2020 2019
Fees and commissions:
Card income
Interchange fees $ 2,794  $ 2,827  $ 2,129  $ 2,334  $ 26  $ 42 
Other card income 1,295  1,459  1,255  1,420  30  31 
Total card income 4,089  4,286  3,384  3,754  56  73 
Service charges
Deposit-related fees 4,441  4,908  2,538  3,163  49  50 
Lending-related fees 841  809  —  —  —  — 
Total service charges 5,282  5,717  2,538  3,163  49  50 
Investment and brokerage services
Asset management fees 7,905  7,591  108  108  7,811  7,510 
Brokerage fees 2,898  2,733  96  115  1,270  1,295 
Total investment and brokerage services
10,803  10,324  204  223  9,081  8,805 
Investment banking fees
Underwriting income 3,610  2,198  —  —  292  296 
Syndication fees 634  887  —  —  —  — 
Financial advisory services 1,072  1,083  —  —  —  — 
Total investment banking fees 5,316  4,168  —  —  292  296 
Total fees and commissions 25,490  24,495  6,126  7,140  9,478  9,224 
Market making and similar activities 6,983  7,267  2  5  52  90 
Other income (loss) (151) 382  149  675  191  394 
Total noninterest income $ 32,322  $ 32,144  $ 6,277  $ 7,820  $ 9,721  $ 9,708 
Global Banking Global Markets
All Other (1)
Nine Months Ended September 30
2020 2019 2020 2019 2020 2019
Fees and commissions:
Card income
Interchange fees $ 337  $ 390  $ 301  $ 61  $ 1  $ — 
Other card income 10  8  —  —  —  — 
Total card income 347  398  301  61  1  — 
Service charges
Deposit-related fees 1,694  1,557  134  120  26  18 
Lending-related fees 685  668  156  141  —  — 
Total service charges 2,379  2,225  290  261  26  18 
Investment and brokerage services
Asset management fees —  —  —  —  (14) (27)
Brokerage fees 45  26  1,487  1,296  —  1 
Total investment and brokerage services
45  26  1,487  1,296  (14) (26)
Investment banking fees
Underwriting income 1,607  917  1,880  1,147  (169) (162)
Syndication fees 357  427  277  461  —  (1)
Financial advisory services 948  984  123  99  1  — 
Total investment banking fees 2,912  2,328  2,280  1,707  (168) (163)
Total fees and commissions 5,683  4,977  4,358  3,325  (155) (171)
Market making and similar activities 88  190  7,059  5,623  (218) 1,359 
Other income (loss) 1,434  2,059  (116) 461  (1,809) (3,207)
Total noninterest income $ 7,205  $ 7,226  $ 11,301  $ 9,409  $ (2,182) $ (2,019)
(1)All Other includes eliminations of intercompany transactions.
Business Segment Reconciliations
Three Months Ended September 30 Nine Months Ended September 30
(Dollars in millions) 2020 2019 2020 2019
Segments’ total revenue, net of interest expense $ 21,385  $ 23,703  $ 67,994  $ 71,229 
Adjustments (1):
       
ALM activities (168) (221) 425  (175)
Liquidating businesses, eliminations and other (767) (527) (2,604) (1,709)
FTE basis adjustment (114) (148) (386) (450)
Consolidated revenue, net of interest expense $ 20,336  $ 22,807  $ 65,429  $ 68,895 
Segments’ total net income 4,584  7,370  12,405  22,055 
Adjustments, net-of-tax (1):
   
ALM activities (127) (158) 316  (112)
Liquidating businesses, eliminations and other 424  (1,435) (297) (1,507)
Consolidated net income $ 4,881  $ 5,777  $ 12,424  $ 20,436 
September 30
2020 2019
Segments’ total assets $ 2,515,107  $ 2,218,817 
Adjustments (1):
   
ALM activities, including securities portfolio 1,018,385  686,301 
Elimination of segment asset allocations to match liabilities (857,787) (546,529)
Other 62,747  67,741 
Consolidated total assets $ 2,738,452  $ 2,426,330 
(1)Adjustments include consolidated income, expense and asset amounts not specifically allocated to individual business segments.