Business Segments (Tables)

3 Months Ended

Mar. 31, 2012



Segment results and reconciliation ^(a)
As of or for the three months ended March 31, (in millions, except ratios)	Investment Bank						Retail Financial Services						Card Services & Auto						Commercial Banking
	2012			2011			2012			2011			2012			2011			2012			2011
Noninterest revenue	$	5,418		$	6,176		$	3,724		$	1,380		$	1,251		$	1,047		$	557		$	502
Net interest income	1,903			2,057			3,925			4,086			3,463			3,744			1,100			1,014
Total net revenue	7,321			8,233			7,649			5,466			4,714			4,791			1,657			1,516
Provision for credit losses	(5		)	(429		)	(96		)	1,199			738			353			77			47
Credit allocation income/(expense)^(b)	—			—			—			—			—			—			—			—
Noninterest expense	4,738			5,016			5,009			4,900			2,029			1,917			598			563
Income/(loss) before income tax expense/(benefit)	2,588			3,646			2,736			(633		)	1,947			2,521			982			906
Income tax expense/(benefit)	906			1,276			983			(234		)	764			987			391			360
Net income/(loss)	$	1,682		$	2,370		$	1,753		$	(399	)	$	1,183		$	1,534		$	591		$	546
Average common equity	$	40,000		$	40,000		$	26,500		$	25,000		$	16,500		$	16,000		$	9,500		$	8,000
Total assets	812,959			853,452			269,442			289,336			199,579			201,179			161,741			140,706
Return on average common equity	17		%	24		%	27		%	(6		)%	29		%	39		%	25		%	28		%
Overhead ratio	65			61			65			90			43			40			36			37




As of or for the three months ended March 31, (in millions, except ratios)	Treasury & Securities Services						Asset Management						Corporate/Private Equity						Reconciling Items^(c)						Total
	2012			2011			2012			2011			2012			2011			2012			2011			2012			2011
Noninterest revenue	$	1,067		$	1,137		$	1,887		$	2,020		$	1,013		$	1,478		$	(531	)	$	(424	)	$	14,386		$	13,316
Net interest income	947			703			483			386			16			34			(171		)	(119		)	11,666			11,905
Total net revenue	2,014			1,840			2,370			2,406			1,029			1,512			(702		)	(543		)	26,052			25,221
Provision for credit losses	2			4			19			5			(9		)	(10		)	—			—			726			1,169
Credit allocation income/(expense)^(b)	3			27			—			—			—			—			(3		)	(27		)	—			—
Noninterest expense	1,473			1,377			1,729			1,660			2,769			562			—			—			18,345			15,995
Income/(loss) before income tax expense/(benefit)	542			486			622			741			(1,731		)	960			(705		)	(570		)	6,981			8,057
Income tax expense/(benefit)	191			170			236			275			(709		)	238			(705		)	(570		)	2,057			2,502
Net income/(loss)	$	351		$	316		$	386		$	466		$	(1,022	)	$	722		$	—		$	—		$	4,924		$	5,555
Average common equity	$	7,500		$	7,000		$	7,000		$	6,500		$	70,711		$	66,915		$	—		$	—		$	177,711		$	169,415
Total assets	66,732			50,614			96,385			71,521			713,326			591,353			NA			NA			2,320,164			2,198,161
Return on average common equity	19		%	18		%	22		%	29		%	NM			NM			NM			NM			11		%	13		%
Overhead ratio	73			75			73			69			NM			NM			NM			NM			70			63

(a)

In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s lines of business results on a “managed basis,” which is a non-GAAP financial measure. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications as discussed below that do not have any impact on net income as reported by the lines of business or by the Firm as a whole.


(b)	IB manages traditional credit exposures related to the Global Corporate Bank (“GCB”) on behalf of IB and TSS, and IB and TSS share the economics related to the Firm’s GCB clients. Included within this allocation are net revenue, provision for credit losses and expenses. IB recognizes this credit allocation as a component of all other income.


(c)	Segment managed results reflect revenue on a FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These adjustments are eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results. FTE adjustments for the three months ended March 31, 2012 and 2011, were as follows.



Three months ended March 31, (in millions)	2012		2011
Noninterest revenue	$	534	$	451
Net interest income	171		119
Income tax expense	705		570

Tax equivalent adjustments



Three months ended March 31, (in millions)	2012		2011
Noninterest revenue	$	534	$	451
Net interest income	171		119
Income tax expense	705		570

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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