XML 25 R47.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Business Segments and Revenue from Contracts with Customers (Tables)
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Schedule of Segment Results and Reconciliation
The following table presents our business segment results for the years ended December 31, 2019, 2018 and 2017, selected balance sheet data as of December 31, 2019, 2018 and 2017, and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, loans held for investment and deposits.
Table 17.1: Segment Results and Reconciliation
 
 
Year Ended December 31, 2019
(Dollars in millions)
 
Credit
Card
 
Consumer
Banking
 
Commercial
Banking(1)
 
Other(1)
 
Consolidated
Total
Net interest income
 
$
14,461

 
$
6,732

 
$
1,983

 
$
164

 
$
23,340

Non-interest income (loss)
 
3,888

 
643

 
831

 
(109
)
 
5,253

Total net revenue
 
18,349

 
7,375

 
2,814

 
55

 
28,593

Provision for credit losses
 
4,992

 
938

 
306

 
0

 
6,236

Non-interest expense
 
9,271

 
4,091

 
1,699

 
422

 
15,483

Income (loss) from continuing operations before income taxes
 
4,086

 
2,346

 
809

 
(367
)
 
6,874

Income tax provision (benefit)
 
959

 
547

 
188

 
(353
)
 
1,341

Income (loss) from continuing operations, net of tax
 
$
3,127

 
$
1,799

 
$
621

 
$
(14
)
 
$
5,533

Loans held for investment
 
$
128,236

 
$
63,065

 
$
74,508

 
$
0

 
$
265,809

Deposits
 
0

 
213,099

 
32,134

 
17,464

 
262,697

 
 
Year Ended December 31, 2018
(Dollars in millions)
 
Credit
Card
 
Consumer
Banking
 
Commercial
Banking(1)(2)
 
Other(1)(2)
 
Consolidated
Total
Net interest income
 
$
14,167

 
$
6,549

 
$
2,044

 
$
115

 
$
22,875

Non-interest income
 
3,520

 
663

 
744

 
274

 
5,201

Total net revenue
 
17,687

 
7,212

 
2,788

 
389

 
28,076

Provision (benefit) for credit losses
 
4,984

 
838

 
83

 
(49
)
 
5,856

Non-interest expense
 
8,542

 
4,027

 
1,654

 
679

 
14,902

Income (loss) from continuing operations before income taxes
 
4,161

 
2,347

 
1,051

 
(241
)
 
7,318

Income tax provision (benefit)
 
970

 
547

 
245

 
(469
)
 
1,293

Income from continuing operations, net of tax
 
$
3,191

 
$
1,800

 
$
806

 
$
228

 
$
6,025

Loans held for investment
 
$
116,361

 
$
59,205

 
$
70,333

 
$
0

 
$
245,899

Deposits
 
0

 
198,607

 
29,480

 
21,677

 
249,764

 
 
Year Ended December 31, 2017
(Dollars in millions)
 
Credit
Card
 
Consumer
Banking
 
Commercial
Banking(1)
 
Other(1)
 
Consolidated
Total
Net interest income
 
$
13,648

 
$
6,380

 
$
2,261

 
$
171

 
$
22,460

Non-interest income (loss)
 
3,325

 
749

 
708

 
(5
)
 
4,777

Total net revenue
 
16,973

 
7,129

 
2,969

 
166

 
27,237

Provision for credit losses
 
6,066

 
1,180

 
301

 
4

 
7,551

Non-interest expense
 
7,916

 
4,233

 
1,603

 
442

 
14,194

Income (loss) from continuing operations before income taxes
 
2,991

 
1,716

 
1,065

 
(280
)
 
5,492

Income tax provision
 
1,071

 
626

 
389

 
1,289

 
3,375

Income (loss) from continuing operations, net of tax
 
$
1,920

 
$
1,090

 
$
676

 
$
(1,569
)
 
$
2,117

Loans held for investment
 
$
114,762

 
$
75,078

 
$
64,575

 
$
58

 
$
254,473

Deposits
 
0

 
185,842

 
33,938

 
23,922

 
243,702

__________
(1) 
Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate (21% for 2019 and 2018 and 35% for 2017) and state taxes where applicable, with offsetting reductions to the Other category.
(2) 
In the first quarter of 2019, we made a change in how revenue is measured in our Commercial Banking business by revising the allocation of tax benefits on certain tax-advantaged investments. As such, 2018 results have been recast to conform with the current period presentation. The result of this measurement change reduced the previously reported total net revenue in our Commercial Banking business by $108 million for the year ended December 31, 2018, with an offsetting increase in the Other category.
Disaggregation of Revenue
The following table presents revenue from contracts with customers and a reconciliation to non-interest income by business segment for the years ended December 31, 2019 and 2018.
Table 17.2: Revenue from Contracts with Customers and Reconciliation to Segments Result
 
 
Year Ended December 31, 2019
(Dollars in millions)
 
Credit
Card
 
Consumer
Banking
 
Commercial
Banking(1)
 
Other(1)
 
Consolidated
Total
Contract revenue:
 
 
 
 
 
 
 
 
 
 
Interchange fees, net(2)
 
$
2,925

 
$
205

 
$
55

 
$
(6
)
 
$
3,179

Service charges and other customer-related fees
 
0

 
298

 
120

 
(1
)
 
417

Other
 
120

 
101

 
3

 
0

 
224

Total contract revenue
 
3,045

 
604

 
178

 
(7
)
 
3,820

Revenue from other sources
 
843

 
39

 
653

 
(102
)
 
1,433

Total non-interest income
 
$
3,888

 
$
643

 
$
831

 
$
(109
)
 
$
5,253

 
 
Year Ended December 31, 2018
(Dollars in millions)
 
Credit
Card
 
Consumer
Banking
 
Commercial
Banking(1)
 
Other(1)
 
Consolidated
Total
Contract revenue:
 
 
 
 
 
 
 
 
 
 
Interchange fees, net(2)
 
$
2,609

 
$
185

 
$
33

 
$
(4
)
 
$
2,823

Service charges and other customer-related fees
 
0

 
367

 
123

 
(1
)
 
489

Other
 
8

 
109

 
2

 
0

 
119

Total contract revenue
 
2,617

 
661

 
158

 
(5
)
 
3,431

Revenue from other sources
 
903

 
2

 
586

 
279

 
1,770

Total non-interest income
 
$
3,520

 
$
663

 
$
744

 
$
274

 
$
5,201

__________
(1) 
Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reclassifications to the Other category.
(2) 
Interchange fees are presented net of customer reward expenses of $4.9 billion and $4.4 billion for the years ended December 31, 2019 and 2018, respectively.