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Segment Reporting
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Reporting SEGMENT REPORTING
We have four reportable business segments:
•
Retail Banking
•
Corporate & Institutional Banking
•
Asset Management Group
•
BlackRock

Results of individual businesses are presented based on our internal management reporting practices. There is no comprehensive, authoritative body of guidance for management accounting equivalent to GAAP; therefore, the financial results of our individual businesses are not necessarily comparable with similar information for any other company. We periodically refine our internal methodologies as management reporting practices are enhanced. To the extent significant and practicable, retrospective application of new methodologies is made to prior period reportable business segment results and disclosures to create comparability with the current period.

Total business segment financial results differ from total consolidated net income. These differences are reflected in the “Other” category in the business segment tables. “Other” includes residual activities that do not meet the criteria for disclosure as a separate reportable business, such as asset and liability management activities including net securities gains or losses, other-than-temporary impairment of investment securities, certain trading activities, certain runoff consumer loan portfolios, private equity investments, intercompany eliminations, certain corporate overhead, tax adjustments that are not allocated to business segments, gains or losses related to BlackRock transactions, exited businesses, and differences between business segment performance reporting and financial
statement reporting (GAAP), including the presentation of net income attributable to noncontrolling interests as the segments’ results exclude their portion of net income attributable to noncontrolling interests. Assets, revenue and earnings attributable to foreign activities were not material in the periods presented for comparative purposes.

Financial results are presented, to the extent practicable, as if each business operated on a stand-alone basis. Additionally, we have aggregated the results for corporate support functions within “Other” for financial reporting purposes.

Net interest income in business segment results reflects our internal funds transfer pricing methodology. Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product repricing characteristics, tenor and other factors.

We have allocated the allowances for loan and lease losses and for unfunded loan commitments and letters of credit based on the loan exposures within each business segment’s portfolio. Key reserve assumptions and estimation processes react to and are influenced by observed changes in loan portfolio performance experience, the financial strength of the borrower and economic conditions. Key reserve assumptions are periodically updated.

Business Segment Products and Services
Retail Banking provides deposit, lending, brokerage, insurance services, investment management and cash management products and services to consumer and small business customers. Our customers are serviced through our branch network, ATMs, call centers, online banking and mobile channels. The branch network is located primarily in markets across the Mid-Atlantic, Midwest and Southeast. In 2018, Retail Banking launched its national expansion strategy designed to grow customers with digitally-led banking and an ultra-thin branch network in markets outside of our existing retail branch network. Deposit products include checking, savings and money market accounts and certificates of deposit. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans and personal and small business loans and lines of credit. The residential mortgage loans are directly originated within our branch network and nationwide, and are typically underwritten to agency and/or third-party standards, and either sold, servicing retained, or held on our balance sheet. Brokerage, investment management and cash management products and services include managed, education, retirement and trust accounts.

Corporate & Institutional Banking provides lending, treasury management, and capital markets-related products and services to mid-sized and large corporations, and government and not-for-profit entities. Lending products include secured and unsecured loans, letters of credit and equipment leases. The Treasury Management business provides payables, receivables, deposit and account services, liquidity and investments, and online and mobile banking products and services to our clients. Capital markets-related products and services include foreign exchange, derivatives, securities underwriting, loan syndications, mergers and acquisitions advisory and equity capital markets advisory related services. We also provide commercial loan servicing and technology solutions for the commercial real estate finance industry. Products and services are provided nationally.

Asset Management Group provides personal wealth management for high net worth and ultra high net worth clients and institutional asset management. The Asset Management group is composed of three distinct operating units:
•
Wealth Management provides products and services to individuals and their families including investment and retirement planning, customized investment management, private banking, and trust management and administration for individuals and their families.
•
Our Hawthorn unit provides multi-generational family planning including estate, financial, tax planning, fiduciary, investment management and consulting, private banking, personal administrative services, asset custody and customized performance reporting to ultra high net worth clients.
•
Institutional asset management provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, and fiduciary retirement advisory services to institutional clients including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits.

BlackRock, in which we hold an equity investment, is a leading publicly-traded investment management firm providing a broad range of investment and technology services to institutional and retail clients worldwide. Using a diverse platform of alpha-seeking active, index and cash management investment strategies across asset classes, BlackRock tailors investment outcomes and asset allocation solutions for clients. Product offerings include single- and multi-asset class portfolios investing in equities, fixed income, alternatives and money market instruments. BlackRock also offers technology services, including an investment and risk management technology platform, as well as advisory services and solutions to a broad base of institutional and wealth management clients.

Our equity investment in BlackRock provides us with an additional source of noninterest income and increases our overall revenue diversification. BlackRock is a publicly-traded company, and additional information regarding its business is available in its filings with the Securities and Exchange Commission (SEC). At December 31, 2019, our economic interest in BlackRock was 22%. We received cash dividends from BlackRock of $459 million, $420 million, and $354 million during 2019, 2018 and 2017, respectively.
Table 99: Results of Businesses
Year ended December 31
In millions
 
Retail
Banking

 
Corporate &
Institutional
Banking

 
Asset
Management
Group

 
BlackRock

 
Other

 
Consolidated (a)

2019
 
 
 
 
 
 
 
 
 
 
 
 
Income Statement
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
5,520

 
$
3,637

 
$
288

 
 
 
$
520

 
$
9,965

Noninterest income
 
2,648

 
2,537

 
991

 
$
999

 
687

 
7,862

Total revenue
 
8,168

 
6,174

 
1,279

 
999

 
1,207

 
17,827

Provision for credit losses (benefit)
 
517

 
284

 
(1
)
 
 
 
(27
)
 
773

Depreciation and amortization
 
230

 
198

 
62

 
 
 
545

 
1,035

Other noninterest expense
 
5,831

 
2,615

 
877

 
 

 
216

 
9,539

Income (loss) before income taxes (benefit) and
noncontrolling interests
 
1,590

 
3,077

 
341

 
999

 
473

 
6,480

Income taxes (benefit)
 
377

 
629

 
79

 
161

 
(184
)
 
1,062

Net income
 
$
1,213

 
$
2,448

 
$
262

 
$
838

 
$
657

 
$
5,418

Average Assets (b)
 
$
92,959

 
$
164,243

 
$
7,360

 
$
8,558

 
$
127,215

 
$
400,335

2018
 
 
 
 
 
 
 
 
 
 
 
 
Income Statement
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
5,119

 
$
3,551

 
$
287

 
 
 
$
764

 
$
9,721

Noninterest income
 
2,631

 
2,406

 
892

 
$
935

 
547

 
7,411

Total revenue
 
7,750

 
5,957

 
1,179

 
935

 
1,311

 
17,132

Provision for credit losses (benefit)
 
373

 
85

 
2

 
 
 
(52
)
 
408

Depreciation and amortization
 
206

 
186

 
52

 
 
 
496

 
940

Other noninterest expense
 
5,772

 
2,520

 
861

 
 

 
203

 
9,356

Income (loss) before income taxes (benefit) and
noncontrolling interests
 
1,399

 
3,166

 
264

 
935

 
664

 
6,428

Income taxes (benefit)
 
335

 
658

 
62

 
154

 
(127
)
 
1,082

Net income
 
$
1,064

 
$
2,508

 
$
202

 
$
781

 
$
791

 
$
5,346

Average Assets (b)
 
$
89,739

 
$
154,119

 
$
7,423

 
$
8,061

 
$
118,893

 
$
378,235

2017
 
 
 
 
 
 
 
 
 
 
 
 
Income Statement
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
4,625

 
$
3,396

 
$
287

 
 
 
$
800

 
$
9,108

Noninterest income
 
2,236

 
2,271

 
881

 
$
1,078

 
755

 
7,221

Total revenue
 
6,861

 
5,667

 
1,168

 
1,078

 
1,555

 
16,329

Provision for credit losses (benefit)
 
347

 
160

 
1

 
 
 
(67
)
 
441

Depreciation and amortization
 
177

 
184

 
50

 
 
 
510

 
921

Other noninterest expense
 
5,569

 
2,370

 
855

 
 

 
683

 
9,477

Income (loss) before income taxes (benefit) and
    noncontrolling interests
 
768

 
2,953

 
262

 
1,078

 
429

 
5,490

Income taxes (benefit)
 
321

 
520

 
75

 
(686
)
 
(128
)
 
102

Net income
 
$
447

 
$
2,433

 
$
187

 
$
1,764

 
$
557

 
$
5,388

Average Assets (b)
 
$
88,663

 
$
148,414

 
$
7,511

 
$
7,677

 
$
119,504

 
$
371,769

(a)
There were no material intersegment revenues for 2019, 2018 and 2017.
(b)
Period-end balances for BlackRock.