Business Segments and Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Schedule of Segment Results and Reconciliation

The following table presents our business segment results for the years ended December 31, 2021, 2020 and 2019, selected balance sheet data as of December 31, 2021 and 2020, and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, loans held for investment and deposits.

Table 17.1: Segment Results and Reconciliation

	Year Ended December 31, 2021
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	14,074	$	8,448	$	2,153	$	(504)	$	24,171
Non-interest income (loss)	4,806		554		1,148		(244)		6,264
Total net revenue (loss)(2)	18,880		9,002		3,301		(748)		30,435
Benefit for credit losses	(902)		(521)		(519)		(2)		(1,944)
Non-interest expense	9,621		4,711		1,815		423		16,570
Income (loss) from continuing operations before income taxes	10,161		4,812		2,005		(1,169)		15,809
Income tax provision (benefit)	2,403		1,136		473		(597)		3,415
Income (loss) from continuing operations, net of tax	$	7,758	$	3,676	$	1,532	$	(572)	$	12,394
Loans held for investment	$	114,772	$	77,646	$	84,922	$	0	$	277,340
Deposits	0		256,407		44,809		9,764		310,980

	Year Ended December 31, 2020
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	13,776	$	7,238	$	2,048	$	(149)	$	22,913
Non-interest income	3,823		466		923		398		5,610
Total net revenue(2)	17,599		7,704		2,971		249		28,523
Provision for credit losses	7,327		1,753		1,181		3		10,264
Non-interest expense	8,491		4,159		1,706		700		15,056
Income (loss) from continuing operations before income taxes	1,781		1,792		84		(454)		3,203
Income tax provision (benefit)	420		425		19		(378)		486
Income (loss) from continuing operations, net of tax	$	1,361	$	1,367	$	65	$	(76)	$	2,717
Loans held for investment	$	106,956	$	68,888	$	75,780	$	0	$	251,624
Deposits	0		249,815		39,590		16,037		305,442

	Year Ended December 31, 2019
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income	$	14,461	$	6,732	$	1,983	$	164	$	23,340
Non-interest income (loss)	3,888		643		831		(109)		5,253
Total net revenue(2)	18,349		7,375		2,814		55		28,593
Provision for credit losses	4,992		938		306		0		6,236
Non-interest expense	9,271		4,091		1,699		422		15,483
Income (loss) from continuing operations before income taxes	4,086		2,346		809		(367)		6,874
Income tax provision (benefit)	959		547		188		(353)		1,341
Income (loss) from continuing operations, net of tax	$	3,127	$	1,799	$	621	$	(14)	$	5,533
Loans held for investment	$	128,236	$	63,065	$	74,508	$	0	$	265,809
Deposits	0		213,099		32,134		17,464		262,697

__________

(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)Total net revenue was reduced by $629 million and $1.1 billion for the years ended December 31, 2021 and 2020, respectively, for credit card finance charges and fees charged off as uncollectible and by $1.4 billion for the year ended December 31, 2019, for the estimated uncollectible amount of billed finance charges and fees and related losses.

Disaggregation of Revenue

The following table presents revenue from contracts with customers and a reconciliation to non-interest income by business segment for the years ended December 31, 2021, 2020 and 2019.

Table 17.2: Revenue from Contracts with Customers and Reconciliation to Segment Results

	Year Ended December 31, 2021
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	3,497	$	267	$	96	$	0	$	3,860
Service charges and other customer-related fees	0		171		287		(1)		457
Other	383		75		5		0		463
Total contract revenue	3,880		513		388		(1)		4,780
Revenue (reduction) from other sources	926		41		760		(243)		1,484
Total non-interest income (loss)	$	4,806	$	554	$	1,148	$	(244)	$	6,264

	Year Ended December 31, 2020
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	2,747	$	209	$	63	$	(2)	$	3,017
Service charges and other customer-related fees	0		188		175		(1)		362
Other	315		39		4		0		358
Total contract revenue	3,062		436		242		(3)		3,737
Revenue from other sources	761		30		681		401		1,873
Total non-interest income	$	3,823	$	466	$	923	$	398	$	5,610

	Year Ended December 31, 2019
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	2,925	$	205	$	55	$	(6)	$	3,179
Service charges and other customer-related fees	0		298		120		(1)		417
Other	120		101		3		0		224
Total contract revenue	3,045		604		178		(7)		3,820
Revenue (reduction) from other sources	843		39		653		(102)		1,433
Total non-interest income (loss)	$	3,888	$	643	$	831	$	(109)	$	5,253

__________

(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)Interchange fees are presented net of customer reward expenses of $6.4 billion for the year ended December 31, 2021 and $4.9 billion for both the years ended December 31, 2020 and 2019.