Business Segments and Revenue from Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2023

Sep. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Results and Reconciliation

The following table presents our business segment results for the three and nine months ended September 30, 2023 and 2022, selected balance sheet data as of September 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 September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	5,114	$	2,133	$	621	$	(445)	$	7,423
Non-interest income	1,513		142		288		0		1,943
Total net revenue (loss)(2)	6,627		2,275		909		(445)		9,366
Provision for credit losses	1,953		213		116		2		2,284
Non-interest expense	3,015		1,262		512		71		4,860
Income (loss) from continuing operations before income taxes	1,659		800		281		(518)		2,222
Income tax provision (benefit)	393		189		67		(217)		432
Income (loss) from continuing operations, net of tax	$	1,266	$	611	$	214	$	(301)	$	1,790
Loans held for investment	$	146,783	$	76,844	$	91,153	$	0	$	314,780
Deposits	0		290,789		36,035		19,187		346,011

	Nine Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	14,498	$	6,762	$	1,901	$	(1,439)	$	21,722
Non-interest income	4,375		426		757		1		5,559
Total net revenue (loss)(2)	18,873		7,188		2,658		(1,438)		27,281
Provision for credit losses	6,298		747		521		3		7,569
Non-interest expense	9,073		3,776		1,524		226		14,599
Income (loss) from continuing operations before income taxes	3,502		2,665		613		(1,667)		5,113
Income tax provision (benefit)	830		629		145		(672)		932
Income (loss) from continuing operations, net of tax	$	2,672	$	2,036	$	468	$	(995)	$	4,181
Loans held for investment	$	146,783	$	76,844	$	91,153	$	0	$	314,780
Deposits	0		290,789		36,035		19,187		346,011

	Three Months Ended September 30, 2022
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	4,313	$	2,311	$	699	$	(320)	$	7,003
Non-interest income (loss)	1,454		129		319		(100)		1,802
Total net revenue (loss)(2)	5,767		2,440		1,018		(420)		8,805
Provision (benefit) for credit losses	1,261		285		123		0		1,669
Non-interest expense	3,004		1,340		542		63		4,949
Income (loss) from continuing operations before income taxes	1,502		815		353		(483)		2,187
Income tax provision (benefit)	356		193		83		(139)		493
Income (loss) from continuing operations, net of tax	$	1,146	$	622	$	270	$	(344)	$	1,694
Loans held for investment	$	126,913	$	81,199	$	95,831	$	0	$	303,943
Deposits	0		256,661		41,058		19,474		317,193

                                                                                                                                                                                                                                                                                                                                                                                                                                        

	Nine Months Ended September 30, 2022
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	12,051	$	6,571	$	1,941	$	(646)	$	19,917
Non-interest income (loss)	4,322		330		868		(227)		5,293
Total net revenue (loss)(2)	16,373		6,901		2,809		(873)		25,210
Provision (benefit) for credit losses	2,387		696		353		(5)		3,431
Non-interest expense	8,558		3,862		1,515		148		14,083
Income (loss) from continuing operations before income taxes	5,428		2,343		941		(1,016)		7,696
Income tax provision (benefit)	1,291		555		223		(501)		1,568
Income (loss) from continuing operations, net of tax	$	4,137	$	1,788	$	718	$	(515)	$	6,128
Loans held for investment	$	126,913	$	81,199	$	95,831	$	0	$	303,943
Deposits	0		256,661		41,058		19,474		317,193

_________

(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 $449 million and $1.3 billion in the three and nine months ended September 30, 2023, respectively, and $222 million and $625 million in the three and nine months ended September 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 nine months ended September 30, 2023 and 2022.

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

	Three Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	1,115	$	92	$	27	$	0	$	1,234
Service charges and other customer-related fees	0		21		78		0		99
Other	111		28		3		0		142
Total contract revenue	1,226		141		108		0		1,475
Revenue from other sources	287		1		180		0		468
Total non-interest income	$	1,513	$	142	$	288	$	0	$	1,943

	Nine Months Ended September 30, 2023
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	3,251	$	270	$	64	$	1	$	3,586
Service charges and other customer-related fees	0		64		173		(1)		236
Other	257		74		16		0		347
Total contract revenue	3,508		408		253		0		4,169
Revenue from other sources	867		18		504		1		1,390
Total non-interest income	$	4,375	$	426	$	757	$	1	$	5,559

	Three Months Ended September 30, 2022
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	1,085	$	83	$	27	$	0	$	1,195
Service charges and other customer-related fees	0		23		62		0		85
Other	104		18		13		0		135
Total contract revenue	1,189		124		102		0		1,415
Revenue (reduction) from other sources	265		5		217		(100)		387
Total non-interest income (loss)	$	1,454	$	129	$	319	$	(100)	$	1,802

	Nine Months Ended September 30, 2022
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	3,115	$	234	$	79	$	1	$	3,429
Service charges and other customer-related fees	0		70		190		(1)		259
Other	297		56		14		0		367
Total contract revenue	3,412		360		283		0		4,055
Revenue (reduction) from other sources	910		(30)		585		(227)		1,238
Total non-interest income (loss)	$	4,322	$	330	$	868	$	(227)	$	5,293

__________

(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