Business Segments and Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2023

Mar. 31, 2021

Schedule of Segment Results and Reconciliation

The following table presents our business segment results for the three months ended March 31, 2023 and 2022, selected balance sheet data as of March 31, 2023 and 2022, 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, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	4,657	$	2,360	$	648	$	(479)	$	7,186
Non-interest income	1,363		135		212		7		1,717
Total net revenue (loss)(2)	6,020		2,495		860		(472)		8,903
Provision (benefit) for credit losses	2,261		275		259		0		2,795
Non-interest expense	3,038		1,283		530		94		4,945
Income (loss) from continuing operations before income taxes	721		937		71		(566)		1,163
Income tax provision (benefit)	172		221		17		(207)		203
Income (loss) from continuing operations, net of tax	$	549	$	716	$	54	$	(359)	$	960
Loans held for investment	$	137,142	$	78,151	$	93,543	$	0	$	308,836
Deposits	0		291,163		38,380		20,284		349,827


	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

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(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 $405 million and $192 million in the first quarters of 2023 and 2022, 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, 2023 and 2022.

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


	Three Months Ended March 31, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	1,025	$	86	$	27	$	1	$	1,139
Service charges and other customer-related fees	0		21		40		(1)		60
Other	55		19		5		0		79
Total contract revenue (loss)	1,080		126		72		0		1,278
Revenue from other sources	283		9		140		7		439
Total non-interest income	$	1,363	$	135	$	212	$	7	$	1,717


	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

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(2)Interchange fees are presented net of customer reward expenses