Business Segments (Tables)

12 Months Ended

Dec. 31, 2012

The following tables provide a summary of the Firm’s segment results for 2012, 2011 and 2010 on a managed basis. Total net revenue (noninterest revenue and net interest income) for each of the segments is presented on a fully taxable-equivalent (“FTE”) basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented on a basis comparable to taxable investments and securities; this non-GAAP financial measure allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense/(benefit).

Effective January 1, 2012, the Firm revised the capital allocated to each of its businesses, reflecting additional refinement of each segment’s Basel III Tier 1 common capital requirements.

Segment results and reconciliation^(a)



As of or the year ended December 31, (in millions, except ratios)	Consumer & Community Banking									Corporate & Investment Bank									Commercial Banking									Asset Management
	2012			2011			2010			2012			2011			2010			2012			2011			2010			2012			2011			2010
Noninterest revenue	$	20,795		$	15,306		$	15,513		$	23,104		$	22,523		$	22,889		$	2,283		$	2,195		$	2,200		$	7,847		$	7,895		$	7,485
Net interest income	29,150			30,381			33,414			11,222			11,461			10,588			4,542			4,223			3,840			2,099			1,648			1,499
Total net revenue	49,945			45,687			48,927			34,326			33,984			33,477			6,825			6,418			6,040			9,946			9,543			8,984
Provision for credit losses	3,774			7,620			17,489			(479		)	(285		)	(1,247		)	41			208			297			86			67			86
Noninterest expense	28,790			27,544			23,706			21,850			21,979			22,869			2,389			2,278			2,199			7,104			7,002			6,112
Income/(loss) before income tax expense/(benefit)	17,381			10,523			7,732			12,955			12,290			11,855			4,395			3,932			3,544			2,756			2,474			2,786
Income tax expense/(benefit)	6,770			4,321			3,154			4,549			4,297			4,137			1,749			1,565			1,460			1,053			882			1,076
Net income/(loss)	$	10,611		$	6,202		$	4,578		$	8,406		$	7,993		$	7,718		$	2,646		$	2,367		$	2,084		$	1,703		$	1,592		$	1,710
Average common equity	$	43,000		$	41,000		$	43,000		$	47,500		$	47,000		$	46,500		$	9,500		$	8,000		$	8,000		$	7,000		$	6,500		$	6,500
Total assets	463,608			483,307			508,775			876,107			845,095			870,631			181,502			158,040			142,646			108,999			86,242			68,997
Return on average common equity	25		%	15		%	11		%	18		%	17		%	17		%	28		%	30		%	26		%	24		%	25		%	26		%
Overhead ratio	58			60			48			64			65			68			35			35			36			71			73			68


(a)	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)	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 years ended December 31, 2012, 2011, and 2010, were as follows.



Year ended December 31, (in millions)	2012		2011		2010
Noninterest revenue	$	2,116	$	2,003	$	1,745
Net interest income	743		530		403
Income tax expense	2,859		2,533		2,148

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Corporate/Private Equity									Reconciling Items^(b)									Total
2012			2011			2010			2012			2011			2010			2012			2011			2010
$	208		$	3,629		$	5,351		$	(2,116	)	$	(2,003	)	$	(1,745	)	$	52,121		$	49,545		$	51,693
(1,360		)	506			2,063			(743		)	(530		)	(403		)	44,910			47,689			51,001
(1,152		)	4,135			7,414			(2,859		)	(2,533		)	(2,148		)	97,031			97,234			102,694
(37		)	(36		)	14			—			—			—			3,385			7,574			16,639
4,596			4,108			6,310			—			—			—			64,729			62,911			61,196
(5,711		)	63			1,090			(2,859		)	(2,533		)	(2,148		)	28,917			26,749			24,859
(3,629		)	(759		)	(190		)	(2,859		)	(2,533		)	(2,148		)	7,633			7,773			7,489
$	(2,082	)	$	822		$	1,280		$	—		$	—		$	—		$	21,284		$	18,976		$	17,370
$	77,352		$	70,766		$	57,520		$	—		$	—		$	—		$	184,352		$	173,266		$	161,520
728,925			693,108			526,556			NA			NA			NA			2,359,141			2,265,792			2,117,605
NM			NM			NM			NM			NM			NM			11		%	11		%	10		%
NM			NM			NM			NM			NM			NM			67			65			60

Tax equivalent adjustments

FTE adjustments for the years ended December 31, 2012, 2011, and 2010, were as follows.



Year ended December 31, (in millions)	2012		2011		2010
Noninterest revenue	$	2,116	$	2,003	$	1,745
Net interest income	743		530		403
Income tax expense	2,859		2,533		2,148

- 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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