Business Segments and Revenue from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2023

Jun. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Results and Reconciliation

The following table presents our business segment results for the three and six months ended June 30, 2023 and 2022, selected balance sheet data as of June 30, 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 June 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	4,727	$	2,269	$	632	$	(515)	$	7,113
Non-interest income (loss)	1,499		149		257		(6)		1,899
Total net revenue (loss)(2)	6,226		2,418		889		(521)		9,012
Provision for credit losses	2,084		259		146		1		2,490
Non-interest expense	3,020		1,231		482		61		4,794
Income (loss) from continuing operations before income taxes	1,122		928		261		(583)		1,728
Income tax provision (benefit)	265		219		61		(248)		297
Income (loss) from continuing operations, net of tax	$	857	$	709	$	200	$	(335)	$	1,431
Loans held for investment	$	142,491	$	77,280	$	91,552	$	0	$	311,323
Deposits	0		286,174		36,793		20,738		343,705

	Six Months Ended June 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	9,384	$	4,629	$	1,280	$	(994)	$	14,299
Non-interest income	2,862		284		469		1		3,616
Total net revenue (loss)(2)	12,246		4,913		1,749		(993)		17,915
Provision for credit losses	4,345		534		405		1		5,285
Non-interest expense	6,058		2,514		1,012		155		9,739
Income (loss) from continuing operations before income taxes	1,843		1,865		332		(1,149)		2,891
Income tax provision (benefit)	437		440		78		(455)		500
Income (loss) from continuing operations, net of tax	$	1,406	$	1,425	$	254	$	(694)	$	2,391
Loans held for investment	$	142,491	$	77,280	$	91,552	$	0	$	311,323
Deposits	0		286,174		36,793		20,738		343,705

	Three Months Ended June 30, 2022
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	3,899	$	2,147	$	635	$	(164)	$	6,517
Non-interest income (loss)	1,410		96		272		(63)		1,715
Total net revenue (loss)(2)	5,309		2,243		907		(227)		8,232
Provision for credit losses	581		281		222		1		1,085
Non-interest expense	2,771		1,286		485		41		4,583
Income (loss) from continuing operations before income taxes	1,957		676		200		(269)		2,564
Income tax provision (benefit)	466		160		48		(141)		533
Income (loss) from continuing operations, net of tax	$	1,491	$	516	$	152	$	(128)	$	2,031
Loans held for investment	$	120,880	$	81,531	$	93,973	$	0	$	296,384
Deposits	0		255,904		38,844		13,137		307,885

                                                                                                                                                                                                                                                                                                                                                                                                                                        

	Six Months Ended June 30, 2022
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	7,738	$	4,260	$	1,242	$	(326)	$	12,914
Non-interest income (loss)	2,868		201		549		(127)		3,491
Total net revenue (loss)(2)	10,606		4,461		1,791		(453)		16,405
Provision (benefit) for credit losses	1,126		411		230		(5)		1,762
Non-interest expense	5,554		2,522		973		85		9,134
Income (loss) from continuing operations before income taxes	3,926		1,528		588		(533)		5,509
Income tax provision (benefit)	935		362		140		(362)		1,075
Income (loss) from continuing operations, net of tax	$	2,991	$	1,166	$	448	$	(171)	$	4,434
Loans held for investment	$	120,880	$	81,531	$	93,973	$	0	$	296,384
Deposits	0		255,904		38,844		13,137		307,885

_________

(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 $443 million and $848 million in the three and six months ended June 30, 2023, respectively, and $211 million and $403 million in the three and six months ended June 30, 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 and six months ended June 30, 2023 and 2022.

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

	Three Months Ended June 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	1,111	$	92	$	10	$	0	$	1,213
Service charges and other customer-related fees	0		22		55		0		77
Other	91		27		8		0		126
Total contract revenue	1,202		141		73		0		1,416
Revenue (reduction) from other sources	297		8		184		(6)		483
Total non-interest income (loss)	$	1,499	$	149	$	257	$	(6)	$	1,899

	Six Months Ended June 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	2,136	$	178	$	37	$	1	$	2,352
Service charges and other customer-related fees	0		43		95		(1)		137
Other	146		46		13		0		205
Total contract revenue	2,282		267		145		0		2,694
Revenue from other sources	580		17		324		1		922
Total non-interest income	$	2,862	$	284	$	469	$	1	$	3,616

	Three Months Ended June 30, 2022
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	1,093	$	80	$	28	$	0	$	1,201
Service charges and other customer-related fees	0		21		63		0		84
Other	98		21		3		0		122
Total contract revenue	1,191		122		94		0		1,407
Revenue (reduction) from other sources	219		(26)		178		(63)		308
Total non-interest income (loss)	$	1,410	$	96	$	272	$	(63)	$	1,715

	Six Months Ended June 30, 2022
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	2,030	$	151	$	52	$	1	$	2,234
Service charges and other customer-related fees	0		47		128		(1)		174
Other	193		38		1		0		232
Total contract revenue	2,223		236		181		0		2,640
Revenue (reduction) from other sources	645		(35)		368		(127)		851
Total non-interest income (loss)	$	2,868	$	201	$	549	$	(127)	$	3,491

__________

(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