Business Segments and Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Segment Results and Reconciliation

The following tables present our business segment results for the three months ended March 31, 2019 and 2018, selected balance sheet data as of March 31, 2019 and 2018, and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, loans held for investment and deposits.

Table 13.1: Segment Results and Reconciliation



	Three Months Ended March 31, 2019
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking⁽¹⁾⁽²⁾			Other⁽¹⁾⁽²⁾			Consolidated Total
Net interest income	$	3,590	$	1,679	$	489		$	33		$	5,791
Non-interest income (loss)	950		160		187			(5		)	1,292
Total net revenue	4,540		1,839		676			28			7,083
Provision for credit losses	1,389		235		69			0			1,693
Non-interest expense	2,171		994		417			89			3,671
Income (loss) from continuing operations before income taxes	980		610		190			(61		)	1,719
Income tax provision (benefit)	229		142		44			(106		)	309
Income from continuing operations, net of tax	$	751	$	468	$	146		$	45		$	1,410
Loans held for investment	$	109,836	$	59,248	$	71,189		$	0		$	240,273
Deposits	0		205,439		31,248			18,420			255,107

	Three Months Ended March 31, 2018
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking⁽¹⁾⁽²⁾			Other⁽¹⁾⁽²⁾			Consolidated Total
Net interest income	$	3,558	$	1,615	$	506		$	39		$	5,718
Non-interest income (loss)	857		174		187			(27		)	1,191
Total net revenue	4,415		1,789		693			12			6,909
Provision (benefit) for credit losses	1,456		233		(14		)	(1		)	1,674
Non-interest expense	2,039		1,000		403			131			3,573
Income (loss) from continuing operations before income taxes	920		556		304			(118		)	1,662
Income tax provision (benefit)	213		130		71			(95		)	319
Income (loss) from continuing operations, net of tax	$	707	$	426	$	233		$	(23	)	$	1,343
Loans held for investment	$	107,576	$	74,674	$	65,953		$	53		$	248,256
Deposits	0		193,073		34,449			23,325			250,847

__________


⁽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 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, prior period 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 $30 million for the three months ended March 31, 2018, with an offsetting increase in the Other category.

Disaggregation of Revenue

The following tables present revenue from contracts with customers and a reconciliation to non-interest income by business segment for the three months ended March 31, 2019 and 2018.

Table 13.2: Revenue from Contracts with Customers and Reconciliation to Segments Results



	Three Months Ended March 31, 2019
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking⁽¹⁾		Other⁽¹⁾			Consolidated Total
Contract revenue:
Interchange fees, net⁽²⁾	$	702	$	46	$	11	$	(1	)	$	758
Service charges and other customer-related fees	0		75		25		0			100
Other	12		24		0		0			36
Total contract revenue	714		145		36		(1		)	894
Revenue from other sources	236		15		151		(4		)	398
Total non-interest income	$	950	$	160	$	187	$	(5	)	$	1,292



	Three Months Ended March 31, 2018
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking⁽¹⁾		Other⁽¹⁾			Consolidated Total
Contract revenue:
Interchange fees, net⁽²⁾	$	594	$	42	$	7	$	0		$	643
Service charges and other customer-related fees	0		98		32		0			130
Other	2		29		0		0			31
Total contract revenue	596		169		39		0			804
Revenue from other sources	261		5		148		(27		)	387
Total non-interest income	$	857	$	174	$	187	$	(27	)	$	1,191

__________


⁽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.