Business Segments and Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Schedule of Segment Results and Reconciliation

The following table presents our business segment results for the three months ended March 31, 2024 and 2023, selected balance sheet data as of March 31, 2024 and 2023, and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, loans held for investment and deposits.

Table 13.1: Segment Results and Reconciliation

	Three Months Ended March 31, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	5,272	$	2,011	$	599	$	(394)	$	7,488
Non-interest income (loss)	1,476		159		281		(2)		1,914
Total net revenue (loss)(2)	6,748		2,170		880		(396)		9,402
Provision (benefit) for credit losses	2,259		426		(2)		0		2,683
Non-interest expense	3,229		1,246		515		147		5,137
Income (loss) from continuing operations before income taxes	1,260		498		367		(543)		1,582
Income tax provision (benefit)	299		117		87		(201)		302
Income (loss) from continuing operations, net of tax	$	961	$	381	$	280	$	(342)	$	1,280
Loans held for investment	$	150,594	$	75,099	$	89,461	$	0	$	315,154
Deposits	0		300,806		31,082		19,081		350,969

                                                                                                                                                                                                                                                                                                                                                                                                                                    

	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

_________

(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 $630 million and $405 million in the first quarters of 2024 and 2023, 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, 2024 and 2023.

Table 13.2: Revenue from Contracts with Customers and Reconciliation to Segment Results

	Three Months Ended March 31, 2024
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	1,020	$	98	$	27	$	0	$	1,145
Service charges and other customer-related fees	0		4		74		0		78
Other	121		44		2		0		167
Total contract revenue	1,141		146		103		0		1,390
Revenue (reduction) from other sources	335		13		178		(2)		524
Total non-interest income (loss)	$	1,476	$	159	$	281	$	(2)	$	1,914

	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	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

__________

(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