Quarterly report pursuant to Section 13 or 15(d)

Business Segment Information

v3.5.0.2
Business Segment Information
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Business Segment Information
NOTE 18 – 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 24 – Business Segment Information to the Consolidated Financial Statements of the Corporation's 2015 Annual Report on Form 10-K. The table below presents net income (loss) and the components thereto (with net interest income on an FTE basis) for the three and nine months ended September 30, 2016 and 2015, and total assets at September 30, 2016 and 2015 for each business segment, as well as All Other.

Results of Business Segments and All Other
 
 
 
 
At and for the Three Months Ended September 30
 
 
 
 
 
Total Corporation (1)
 
Consumer Banking
(Dollars in millions)
2016
 
2015
 
2016
 
2015
Net interest income (FTE basis)
$
10,429

 
$
10,127

 
$
5,290

 
$
5,093

Noninterest income
11,434

 
11,092

 
2,678

 
2,888

Total revenue, net of interest expense (FTE basis)
21,863

 
21,219

 
7,968

 
7,981

Provision for credit losses
850

 
806

 
698

 
523

Noninterest expense
13,481

 
13,939

 
4,371

 
4,711

Income before income taxes (FTE basis)
7,532

 
6,474

 
2,899

 
2,747

Income tax expense (FTE basis)
2,577

 
1,855

 
1,086

 
990

Net income
$
4,955

 
$
4,619

 
$
1,813

 
$
1,757

Period-end total assets
$
2,195,314

 
$
2,152,962

 
$
687,247

 
$
625,158

 
 
 
 
 
 
 
Global Wealth &
Investment Management
 
Global Banking
 
2016
 
2015
 
2016
 
2015
Net interest income (FTE basis)
$
1,394

 
$
1,360

 
$
2,470

 
$
2,315

Noninterest income
2,985

 
3,093

 
2,278

 
2,021

Total revenue, net of interest expense (FTE basis)
4,379

 
4,453

 
4,748

 
4,336

Provision for credit losses
7

 
(2
)
 
118

 
181

Noninterest expense
3,257

 
3,470

 
2,151

 
2,161

Income before income taxes (FTE basis)
1,115

 
985

 
2,479

 
1,994

Income tax expense (FTE basis)
418

 
353

 
926

 
716

Net income
$
697

 
$
632

 
$
1,553

 
$
1,278

Period-end total assets
$
289,795

 
$
279,237

 
$
397,795

 
$
376,379

 
 
 
 
 
 
 
Global Markets
 
All Other
 
2016
 
2015
 
2016
 
2015
Net interest income (FTE basis)
$
1,119

 
$
1,094

 
$
156

 
$
265

Noninterest income
3,240

 
2,656

 
253

 
434

Total revenue, net of interest expense (FTE basis)
4,359

 
3,750

 
409

 
699

Provision for credit losses
19

 
42

 
8

 
62

Noninterest expense
2,658

 
2,697

 
1,044

 
900

Income (loss) before income taxes (FTE basis)
1,682

 
1,011

 
(643
)
 
(263
)
Income tax expense (benefit) (FTE basis)
608

 
211

 
(461
)
 
(415
)
Net income (loss)
$
1,074

 
$
800

 
$
(182
)
 
$
152

Period-end total assets
$
595,165

 
$
576,461

 
$
225,312

 
$
295,727

(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
(Dollars in millions)
2016
 
2015
 
2016
 
2015
Net interest income (FTE basis)
$
31,470

 
$
29,936

 
$
15,825

 
$
15,199

Noninterest income
32,907

 
34,111

 
7,795

 
8,314

Total revenue, net of interest expense (FTE basis)
64,377

 
64,047

 
23,620

 
23,513

Provision for credit losses
2,823

 
2,351

 
1,955

 
1,662

Noninterest expense
41,790

 
43,724

 
13,324

 
14,079

Income before income taxes (FTE basis)
19,764

 
17,972

 
8,341

 
7,772

Income tax expense (FTE basis)
6,554

 
5,420

 
3,088

 
2,859

Net income
$
13,210

 
$
12,552

 
$
5,253

 
$
4,913

Period-end total assets
$
2,195,314

 
$
2,152,962

 
$
687,247

 
$
625,158

 
 
 
 
 
 
 
Global Wealth &
Investment Management
 
Global Banking
 
2016
 
2015
 
2016
 
2015
Net interest income (FTE basis)
$
4,310

 
$
4,081

 
$
7,439

 
$
6,788

Noninterest income
8,963

 
9,475

 
6,457

 
6,272

Total revenue, net of interest expense (FTE basis)
13,273

 
13,556

 
13,896

 
13,060

Provision for credit losses
46

 
36

 
870

 
454

Noninterest expense
9,822

 
10,446

 
6,449

 
6,396

Income before income taxes (FTE basis)
3,405

 
3,074

 
6,577

 
6,210

Income tax expense (FTE basis)
1,267

 
1,130

 
2,435

 
2,286

Net income
$
2,138

 
$
1,944

 
$
4,142

 
$
3,924

Period-end total assets
$
289,795

 
$
279,237

 
$
397,795

 
$
376,379

 
 
 
 
 
 
 
Global Markets
 
All Other
 
2016
 
2015
 
2016
 
2015
Net interest income (FTE basis)
$
3,391

 
$
3,059

 
$
505

 
$
809

Noninterest income
9,227

 
8,837

 
465

 
1,213

Total revenue, net of interest expense (FTE basis)
12,618

 
11,896

 
970

 
2,022

Provision for credit losses
23

 
69

 
(71
)
 
130

Noninterest expense
7,690

 
8,606

 
4,505

 
4,197

Income (loss) before income taxes (FTE basis)
4,905

 
3,221

 
(3,464
)
 
(2,305
)
Income tax expense (benefit) (FTE basis)
1,746

 
968

 
(1,982
)
 
(1,823
)
Net income (loss)
$
3,159

 
$
2,253

 
$
(1,482
)
 
$
(482
)
Period-end total assets
$
595,165

 
$
576,461

 
$
225,312

 
$
295,727


(1) 
There were no material intersegment revenues.


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. The adjustments presented in the table below include consolidated income, expense and asset amounts not specifically allocated to individual business segments.

Business Segment Reconciliations
 
 
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2016
 
2015
 
2016
 
2015
Segments' total revenue, net of interest expense (FTE basis)
$
21,454

 
$
20,520

 
$
63,407

 
$
62,025

Adjustments:
 
 
 
 
 
 
 
ALM activities
(46
)
 
336

 
(20
)
 
453

Liquidating businesses and other
455

 
363

 
990

 
1,569

FTE basis adjustment
(228
)
 
(227
)
 
(666
)
 
(664
)
Consolidated revenue, net of interest expense
$
21,635

 
$
20,992

 
$
63,711

 
$
63,383

 
 
 
 
 
 
 
 
Segments' total net income
$
5,137

 
$
4,467

 
$
14,692

 
$
13,034

Adjustments, net-of-taxes:
 
 
 
 
 
 
 
ALM activities
(138
)
 
71

 
(349
)
 
(140
)
Liquidating businesses and other
(44
)
 
81

 
(1,133
)
 
(342
)
Consolidated net income
$
4,955

 
$
4,619

 
$
13,210

 
$
12,552

 
 
 
 
 
 
 
 
 
 
 
September 30
 
 
 
 
 
2016
 
2015
Segments' total assets
 
 
 
 
$
1,970,002

 
$
1,857,235

Adjustments:
 
 
 
 
 
 
 
ALM activities, including securities portfolio
 
 
 
 
616,804

 
610,525

Liquidating businesses and other
 
 
 
 
116,989

 
147,140

Elimination of segment asset allocations to match liabilities
 
 
 
 
(508,481
)
 
(461,938
)
Consolidated total assets
 
 
 
 
$
2,195,314

 
$
2,152,962