| 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.
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Results of Business Segments and All Other |
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At and for the three months ended September 30 |
Total Corporation (1)
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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 |
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|
2,540 |
|
|
2,562 |
|
|
3,247 |
|
|
3,124 |
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Total revenue, net of interest expense (FTE basis) |
22,928 |
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|
22,079 |
|
|
9,403 |
|
|
8,774 |
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|
4,783 |
|
|
4,620 |
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Provision for credit losses |
716 |
|
|
834 |
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|
870 |
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|
967 |
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|
13 |
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|
16 |
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Noninterest expense |
13,067 |
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|
13,394 |
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|
4,355 |
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|
4,461 |
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|
3,414 |
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|
3,369 |
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Income before income taxes (FTE basis) |
9,145 |
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|
7,851 |
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|
4,178 |
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|
3,346 |
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|
1,356 |
|
|
1,235 |
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Income tax expense (FTE basis) |
1,978 |
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|
2,427 |
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|
1,065 |
|
|
1,260 |
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|
346 |
|
|
465 |
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Net income |
$ |
7,167 |
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|
$ |
5,424 |
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$ |
3,113 |
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$ |
2,086 |
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|
$ |
1,010 |
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|
$ |
770 |
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Period-end total assets |
$ |
2,338,833 |
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$ |
2,284,174 |
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$ |
765,497 |
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$ |
742,513 |
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$ |
276,146 |
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$ |
276,187 |
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Global Banking |
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Global Markets |
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All Other |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net interest income (FTE basis) |
$ |
2,706 |
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|
$ |
2,642 |
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$ |
754 |
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|
$ |
899 |
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$ |
162 |
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$ |
152 |
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Noninterest income (loss) |
2,032 |
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|
2,345 |
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|
3,089 |
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|
3,002 |
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(1 |
) |
|
(355 |
) |
Total revenue, net of interest expense (FTE basis) |
4,738 |
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|
4,987 |
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|
3,843 |
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|
3,901 |
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|
161 |
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(203 |
) |
Provision for credit losses |
(70 |
) |
|
48 |
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(2 |
) |
|
(6 |
) |
|
(95 |
) |
|
(191 |
) |
Noninterest expense |
2,120 |
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|
2,119 |
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|
2,612 |
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|
2,711 |
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|
566 |
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|
734 |
|
Income (loss) before income taxes (FTE basis) |
2,688 |
|
|
2,820 |
|
|
1,233 |
|
|
1,196 |
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|
(310 |
) |
|
(746 |
) |
Income tax expense (benefit) (FTE basis) |
699 |
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|
1,062 |
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|
321 |
|
|
440 |
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(453 |
) |
|
(800 |
) |
Net income |
$ |
1,989 |
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$ |
1,758 |
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$ |
912 |
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$ |
756 |
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$ |
143 |
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$ |
54 |
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Period-end total assets |
$ |
430,846 |
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$ |
423,185 |
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$ |
646,359 |
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$ |
629,222 |
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$ |
219,985 |
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$ |
213,067 |
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(1) |
There were no material intersegment revenues. |
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Results of Business Segments and All Other |
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At and for the nine months ended September 30 |
Total Corporation (1)
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Consumer Banking |
|
Global Wealth &
Investment Management |
(Dollars in millions) |
2018 |
|
2017 |
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2018 |
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2017 |
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2018 |
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2017 |
Net interest income (FTE basis) |
$ |
35,583 |
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$ |
33,879 |
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$ |
19,993 |
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$ |
17,953 |
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$ |
4,673 |
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$ |
4,653 |
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Noninterest income |
33,383 |
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|
33,711 |
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|
7,653 |
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|
7,614 |
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|
9,675 |
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|
9,254 |
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Total revenue, net of interest expense (FTE basis) |
68,966 |
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|
67,590 |
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|
27,646 |
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|
25,567 |
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|
14,348 |
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|
13,907 |
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Provision for credit losses |
2,377 |
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|
2,395 |
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|
2,749 |
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|
2,639 |
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|
63 |
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|
50 |
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Noninterest expense |
40,248 |
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|
41,469 |
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|
13,231 |
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|
13,286 |
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|
10,235 |
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|
10,085 |
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Income before income taxes (FTE basis) |
26,341 |
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|
23,726 |
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|
11,666 |
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|
9,642 |
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|
4,050 |
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|
3,772 |
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Income tax expense (FTE basis) |
5,472 |
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|
7,859 |
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|
2,975 |
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|
3,636 |
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|
1,033 |
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|
1,422 |
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Net income |
$ |
20,869 |
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$ |
15,867 |
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$ |
8,691 |
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$ |
6,006 |
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$ |
3,017 |
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$ |
2,350 |
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Period-end total assets |
$ |
2,338,833 |
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$ |
2,284,174 |
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$ |
765,497 |
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$ |
742,513 |
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$ |
276,146 |
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$ |
276,187 |
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|
Global Banking |
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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 |
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Noninterest income (loss) |
6,537 |
|
|
7,194 |
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|
10,425 |
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|
9,743 |
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|
(907 |
) |
|
(94 |
) |
Total revenue, net of interest expense (FTE basis) |
14,594 |
|
|
14,980 |
|
|
12,850 |
|
|
12,555 |
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|
(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 |
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|
4,711 |
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|
4,436 |
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|
(2,286 |
) |
|
(2,589 |
) |
Income tax expense (benefit) (FTE basis) |
2,132 |
|
|
3,192 |
|
|
1,225 |
|
|
1,553 |
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|
(1,893 |
) |
|
(1,944 |
) |
Net income (loss) |
$ |
6,068 |
|
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$ |
5,273 |
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$ |
3,486 |
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$ |
2,883 |
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$ |
(393 |
) |
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$ |
(645 |
) |
Period-end total assets |
$ |
430,846 |
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$ |
423,185 |
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$ |
646,359 |
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$ |
629,222 |
|
|
$ |
219,985 |
|
|
$ |
213,067 |
|
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(1) |
There were no material intersegment revenues. |
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Business Segment Reconciliations |
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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 |
|
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$ |
22,282 |
|
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$ |
69,438 |
|
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$ |
67,009 |
|
Adjustments (1):
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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 |
|
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$ |
68,511 |
|
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$ |
66,916 |
|
Segments’ total net income |
7,024 |
|
|
5,370 |
|
|
21,262 |
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|
16,512 |
|
Adjustments, net-of-taxes (1):
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|
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|
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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 |
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|
|
|
|
2018 |
|
2017 |
Segments’ total assets |
|
|
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|
$ |
2,118,848 |
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$ |
2,071,107 |
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Adjustments (1):
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ALM activities, including securities portfolio |
|
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|
675,886 |
|
|
635,353 |
|
Elimination of segment asset allocations to match liabilities |
|
|
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|
(531,297 |
) |
|
(515,007 |
) |
Other |
|
|
|
|
75,396 |
|
|
92,721 |
|
Consolidated total assets |
|
|
|
|
$ |
2,338,833 |
|
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$ |
2,284,174 |
|
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(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.
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Noninterest Income by Business Segment and All Other |
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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.
|
|