Business Segments and Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Results and Reconciliation

The following table presents our business segment results for the three months ended March 31, 2022 and 2021, selected balance sheet data as of March 31, 2022 and 2021, and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, loans held for investment and deposits.

Table 12.1: Segment Results and Reconciliation

	Three Months Ended March 31, 2022
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	3,839	$	2,113	$	607	$	(162)	$	6,397
Non-interest income (loss)	1,458		105		277		(64)		1,776
Total net revenue (loss)(2)	5,297		2,218		884		(226)		8,173
Provision (benefit) for credit losses	545		130		8		(6)		677
Non-interest expense	2,783		1,236		488		44		4,551
Income (loss) from continuing operations before income taxes	1,969		852		388		(264)		2,945
Income tax provision (benefit)	469		202		92		(221)		542
Income (loss) from continuing operations, net of tax	$	1,500	$	650	$	296	$	(43)	$	2,403
Loans held for investment	$	113,962	$	80,330	$	86,174	$	0	$	280,466
Deposits	0		258,359		45,232		9,838		313,429

	Three Months Ended March 31, 2021
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	3,372	$	2,030	$	520	$	(100)	$	5,822
Non-interest income (loss)	1,029		141		240		(119)		1,291
Total net revenue (loss)(2)	4,401		2,171		760		(219)		7,113
Provision (benefit) for credit losses	(492)		(126)		(203)		(2)		(823)
Non-interest expense	2,135		1,117		419		69		3,740
Income (loss) from continuing operations before income taxes	2,758		1,180		544		(286)		4,196
Income tax provision (benefit)	653		278		128		(190)		869
Income (loss) from continuing operations, net of tax	$	2,105	$	902	$	416	$	(96)	$	3,327
Loans held for investment	$	99,127	$	70,202	$	73,802	$	0	$	243,131
Deposits	0		254,001		41,552		14,775		310,328

__________

(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 $192 million and $180 million in the first quarters of 2022 and 2021, respectively, for credit card finance charges and fees charged off as uncollectible.

Disaggregation of Revenue

The following table presents revenue from contracts with customers and a reconciliation to non-interest income by business segment for the three months ended March 31, 2022 and 2021.

Table 12.2: Revenue from Contracts with Customers and Reconciliation to Segment Results

	Three Months Ended March 31, 2022
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	937	$	71	$	24	$	1	$	1,033
Service charges and other customer-related fees	0		26		65		(1)		90
Other	95		17		(2)		0		110
Total contract revenue	1,032		114		87		0		1,233
Revenue (reduction) from other sources	426		(9)		190		(64)		543
Total non-interest income (loss)	$	1,458	$	105	$	277	$	(64)	$	1,776

	Three Months Ended March 31, 2021
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	743	$	57	$	17	$	0	$	817
Service charges and other customer-related fees	0		44		50		0		94
Other	70		19		1		0		90
Total contract revenue	813		120		68		0		1,001
Revenue (reduction) from other sources	216		21		172		(119)		290
Total non-interest income (loss)	$	1,029	$	141	$	240	$	(119)	$	1,291

__________

(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.