Business Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

Business segment financial results are as follows:



(dollar amounts in millions)	Business Bank			Retail Bank			Wealth Management			Finance			Other				Total
Year Ended December 31, 2019	Business Bank			Retail Bank			Wealth Management			Finance			Other				Total
Earnings summary:
Net interest income (expense)	$	1,655		$	568		$	183		$	(126	)	$	59			$	2,339
Provision for credit losses	88			(4		)	(14		)	—			4				74
Noninterest income	555			132			270			43			10				1,010
Noninterest expenses	795			597			283			(1		)	69				1,743
Provision (benefit) for income taxes	306			24			44			(26		)	(14		)	(a)	334
Net income (loss)	$	1,021		$	83		$	140		$	(56	)	$	10			$	1,198
Net credit-related charge-offs (recoveries)	$	111		$	1		$	(5	)	$	—		$	—			$	107

Selected average balances:
Assets	$	44,946		$	2,852		$	5,083		$	14,235		$	4,372			$	71,488
Loans	43,472			2,104			4,935			—			—				50,511
Deposits	29,047			20,743			3,833			1,673			185				55,481

Statistical data:
Return on average assets (b)	2.27		%	0.39		%	2.76		%	n/m			n/m				1.68		%
Efficiency ratio (c)	35.96			84.49			62.45			n/m			n/m				51.82
Year Ended December 31, 2018
Earnings summary:
Net interest income (expense)	$	1,613		$	548		$	181		$	(46	)	$	56			$	2,352
Provision for credit losses	6			(1		)	(3		)	—			(3		)		(1		)
Noninterest income	547			136			266			27			—				976
Noninterest expenses	847			602			293			(4		)	56				1,794
Provision (benefit) for income taxes	283			18			36			(14		)	(23		)	(a)	300
Net income (loss)	$	1,024		$	65		$	121		$	(1	)	$	26			$	1,235
Net credit-related charge-offs (recoveries)	$	52		$	—		$	(1	)	$	—		$	—			$	51

Selected average balances:
Assets	$	43,207		$	2,633		$	5,214		$	13,705		$	5,965			$	70,724
Loans	41,618			2,067			5,081			—			—				48,766
Deposits	30,116			20,812			3,941			941			125				55,935

Statistical data:
Return on average assets (b)	2.37		%	0.31		%	2.32		%	n/m			n/m				1.75		%
Efficiency ratio (c)	39.22			87.59			65.60			n/m			n/m				53.56

(Table continues on following page)



(dollar amounts in millions)	Business Bank			Retail Bank			Wealth Management			Finance			Other				Total
Year Ended December 31, 2017	Business Bank			Retail Bank			Wealth Management			Finance			Other				Total
Earnings summary:
Net interest income (expense)	$	1,513		$	453		$	169		$	(111	)	$	37			$	2,061
Provision for credit losses	69			2			1			—			2				74
Noninterest income	639			154			255			49			10				1,107
Noninterest expenses	918			615			285			(4		)	46				1,860
Provision (benefit) for income taxes	410			(4		)	51			(35		)	69			(a)	491
Net income (loss)	$	755		$	(6	)	$	87		$	(23	)	$	(70	)		$	743
Net credit-related charge-offs (recoveries)	$	96		$	1		$	(5	)	$	—		$	—			$	92

Selected average balances:
Assets	$	42,653		$	2,626		$	5,401		$	13,954		$	6,818			$	71,452
Loans	41,241			2,061			5,256			—			—				48,558
Deposits	31,999			20,775			4,081			241			162				57,258

Statistical data:
Return on average assets (b)	1.77		%	(0.03		)%	1.61		%	n/m			n/m				1.04		%
Efficiency ratio (c)	42.67			101.29			67.06			n/m			n/m				58.70


(a)	Primarily reflected discrete tax items, including benefits of $17 million and $48 million in 2019 and 2018, respectively, and a net charge of $72 million in 2017.


(b)	Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.

(c)

Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains (losses) from securities and a derivative contract tied to the conversion rate of Visa Class B shares.

Market Segment Financial Results

Market segment financial results are as follows:



(dollar amounts in millions)	Michigan			California			Texas			Other Markets			Finance & Other				Total
Year Ended December 31, 2019	Michigan			California			Texas			Other Markets			Finance & Other				Total
Earnings summary:
Net interest income (expense)	$	729		$	811		$	493		$	373		$	(67	)		$	2,339
Provision for credit losses	(11		)	(33		)	119			(5		)	4				74
Noninterest income	291			173			128			365			53				1,010
Noninterest expenses	554			406			345			369			69				1,743
Provision (benefit) for income taxes	108			155			38			74			(41		)	(a)	334
Net income (loss)	$	369		$	456		$	119		$	300		$	(46	)		$	1,198
Net credit-related charge-offs (recoveries)	$	11		$	8		$	93		$	(5	)	$	—			$	107

Selected average balances:
Assets	$	13,157		$	18,856		$	11,269		$	9,599		$	18,607			$	71,488
Loans	12,553			18,540			10,616			8,802			—				50,511
Deposits	20,081			16,857			8,780			7,905			1,858				55,481

Statistical data:
Return on average assets (b)	1.77		%	2.42		%	1.06		%	3.13		%	n/m				1.68		%
Efficiency ratio (c)	54.02			41.21			55.59			50.03			n/m				51.82

(Table continues on following page)



(dollar amounts in millions)	Michigan			California			Texas			Other Markets			Finance & Other				Total
Year Ended December 31, 2018	Michigan			California			Texas			Other Markets			Finance & Other				Total
Earnings summary:
Net interest income	$	727		$	788		$	474		$	353		$	10			$	2,352
Provision for credit losses	30			26			(53		)	(1		)	(3		)		(1		)
Noninterest income	296			164			130			359			27				976
Noninterest expenses	577			424			365			376			52				1,794
Provision (benefit) for income taxes	90			123			64			60			(37		)	(a)	300
Net income	$	326		$	379		$	228		$	277		$	25			$	1,235
Net credit-related charge-offs	$	7		$	27		$	12		$	5		$	—			$	51

Selected average balances:
Assets	$	13,207		$	18,544		$	10,380		$	8,922		$	19,671			$	70,724
Loans	12,531			18,283			9,812			8,140			—				48,766
Deposits	20,770			16,964			8,992			8,144			1,065				55,935

Statistical data:
Return on average assets (b)	1.51		%	2.04		%	2.20		%	3.11		%	n/m				1.75		%
Efficiency ratio (c)	56.22			44.58			60.30			52.93			n/m				53.56
Year Ended December 31, 2017
Earnings summary:
Net interest income (expense)	$	657		$	711		$	451		$	316		$	(74	)		$	2,061
Provision for credit losses	8			101			(72		)	36			1				74
Noninterest income	324			171			131			423			58				1,107
Noninterest expenses	589			404			375			450			42				1,860
Provision for income taxes	137			145			104			71			34			(a)	491
Net income (loss)	$	247		$	232		$	175		$	182		$	(93	)		$	743
Net credit-related (recoveries) charge-offs	$	(1	)	$	33		$	46		$	14		$	—			$	92

Selected average balances:
Assets	$	13,393		$	18,269		$	10,434		$	8,584		$	20,772			$	71,452
Loans	12,676			18,008			9,960			7,914			—				48,558
Deposits	21,818			17,533			9,623			7,881			403				57,258

Statistical data:
Return on average assets (b)	1.09		%	1.25		%	1.61		%	2.12		%	n/m				1.04		%
Efficiency ratio (c)	60.01			45.83			64.35			60.98			n/m				58.70


(a)	Primarily reflected discrete tax items, including benefits of $17 million and $48 million in 2019 and 2018, respectively, and a net charge of $72 million in 2017.


(b)	Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.


(c)	Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains (losses) from securities and a derivative contract tied to the conversion rate of Visa Class B shares.

n/m – not meaningful