Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2020

Business segment financial results are as follows:


	Commercial Bank			Retail Bank			Wealth Management			Finance		Other		Total
(dollar amounts in millions)
Three Months Ended September 30, 2020
Earnings summary:
Net interest income (expense)	$	413		$	127		$	42		$	(125)	$	1	$	458
Provision for credit losses	14			(2)			(7)			—		—		5
Noninterest income	135			28			64			16		9		252
Noninterest expenses	206			153			76			—		11		446
Provision (benefit) for income taxes	67			—			8			(26)		(1)		48
Net income (loss)	$	261		$	4		$	29		$	(83)	$	—	$	211
Net credit-related charge-offs (recoveries)	$	36		$	(1)		$	(2)		$	—	$	—	$	33

Selected average balances:
Assets	$	45,636		$	3,487		$	5,198		$	15,909	$	14,038	$	84,268
Loans	44,248			2,678			5,094			—		(7)		52,013
Deposits	39,535			23,604			4,439			1,004		181		68,763

Statistical data:
Return on average assets (a)	2.27		%	0.05		%	2.24		%	n/m		n/m		0.99		%
Efficiency ratio (b)	37.60			98.29			71.72			n/m		n/m		62.79
Three Months Ended September 30, 2019
Earnings summary:
Net interest income (expense)	$	420		$	142		$	47		$	(38)	$	15	$	586
Provision for credit losses	39			(2)			(3)			—		1		35
Noninterest income	140			31			69			12		4		256
Noninterest expenses	199			149			69			(1)		19		435
Provision (benefit) for income taxes	74			5			12			(8)		(3)		80
Net income (loss)	$	248		$	21		$	38		$	(17)	$	2	$	292
Net credit-related charge-offs (recoveries)	$	43		$	1		$	(2)		$	—	$	—	$	42

Selected average balances:
Assets	$	45,460		$	2,871		$	5,032		$	14,061	$	4,312	$	71,736
Loans	43,904			2,114			4,884			—		(15)		50,887
Deposits	28,917			20,761			3,775			2,049		214		55,716

Statistical data:
Return on average assets (a)	2.17		%	0.39		%	3.01		%	n/m		n/m		1.61		%
Efficiency ratio (b)	35.62			84.54			59.79			n/m		n/m		51.54

(a)Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.

(b)Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net losses from securities and a derivative contract tied to the conversion rate of Visa Class B shares.

n/m – not meaningful


	Commercial Bank			Retail Bank			Wealth Management			Finance		Other		Total
(dollar amounts in millions)
Nine Months Ended September 30, 2020
Earnings summary:
Net interest income (expense)	$	1,195		$	372		$	123		$	(264)	$	16	$	1,442
Provision for credit losses	527			6			21			—		—		554
Noninterest income	406			80			200			41		9		736
Noninterest expenses	607			457			221			1		25		1,311
Provision (benefit) for income taxes	94			(4)			17			(54)		1		54
Net income (loss)	$	373		$	(7)		$	64		$	(170)	$	(1)	$	259
Net credit-related charge-offs (recoveries)	$	167		$	1		$	(1)		$	—	$	—	$	167

Selected average balances:
Assets	$	45,764		$	3,221		$	5,156		$	14,902	$	10,699	$	79,742
Loans	44,256			2,413			5,035			—		2		51,706
Deposits	35,376			22,486			4,228			1,030		171		63,291

Statistical data:
Return on average assets (a)	1.09		%	(0.04)		%	1.65		%	n/m		n/m		0.43		%
Efficiency ratio (b)	37.89			100.27			68.54			n/m		n/m		60.10

Nine Months Ended September 30, 2019
Earnings summary:
Net interest income (expense)	$	1,252		$	434		$	140		$	(75)	$	44	$	1,795
Provision for credit losses	85			(5)			(13)			—		(1)		66
Noninterest income	412			95			201			29		7		744
Noninterest expenses	592			441			208			—		51		1,292
Provision (benefit) for income taxes	227			21			35			(16)		(15)		252
Net income (loss)	$	760		$	72		$	111		$	(30)	$	16	$	929
Net credit-related charge-offs (recoveries)	$	90		$	1		$	(5)		$	—	$	—	$	86

Selected average balances:
Assets	$	44,902		$	2,841		$	5,092		$	13,853	$	4,239	$	70,927
Loans	43,465			2,108			4,950			—		(9)		50,514
Deposits	28,545			20,628			3,772			1,788		176		54,909

Statistical data:
Return on average assets (a)	2.26		%	0.46		%	2.92		%	n/m		n/m		1.75		%
Efficiency ratio (b)	35.61			82.70			61.04			n/m		n/m		50.66

(a)Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.

n/m – not meaningful

Market Segment Financial Results

Market segment financial results are as follows:


	Michigan			California			Texas			Other Markets			Finance & Other		Total
(dollar amounts in millions)
Three Months Ended September 30, 2020
Earnings summary:
Net interest income (expense)	$	168		$	179		$	117		$	118		$	(124)	$	458
Provision for credit losses	19			11			(25)			—			—		5
Noninterest income	66			33			28			100			25		252
Noninterest expenses	139			102			89			105			11		446
Provision (benefit) for income taxes	13			21			17			24			(27)		48
Net income (loss)	$	63		$	78		$	64		$	89		$	(83)	$	211
Net credit-related charge-offs	$	6		$	16		$	11		$	—		$	—	$	33

Selected average balances:
Assets	$	13,280		$	18,357		$	11,365		$	11,322		$	29,944	$	84,268
Loans	12,607			18,095			10,923			10,399			(11)		52,013
Deposits	24,759			20,130			10,654			12,035			1,185		68,763

Statistical data:
Return on average assets (a)	0.95		%	1.46		%	2.14		%	2.68		%	n/m		0.99		%
Efficiency ratio (b)	59.79			47.98			61.16			48.22			n/m		62.79

Three Months Ended September 30, 2019
Earnings summary:
Net interest income (expense)	$	185		$	203		$	125		$	96		$	(23)	$	586
Provision for credit losses	(1)			(6)			50			(9)			1		35
Noninterest income	74			41			31			94			16		256
Noninterest expenses	139			102			86			90			18		435
Provision (benefit) for income taxes	27			37			5			22			(11)		80
Net income (loss)	$	94		$	111		$	15		$	87		$	(15)	$	292
Net credit-related charge-offs (recoveries)	$	6		$	5		$	34		$	(3)		$	—	$	42

Selected average balances:
Assets	$	13,205		$	18,595		$	11,462		$	10,100		$	18,374	$	71,736
Loans	12,554			18,261			10,805			9,282			(15)		50,887
Deposits	20,164			16,705			8,705			7,879			2,263		55,716

Statistical data:
Return on average assets (a)	1.79		%	2.37		%	0.48		%	3.45		%	n/m		1.61		%
Efficiency ratio (b)	53.30			41.70			55.57			47.08			n/m		51.54

(a)Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.

n/m – not meaningful.


	Michigan			California			Texas			Other Markets			Finance & Other		Total
(dollar amounts in millions)
Nine Months Ended September 30, 2020
Earnings summary:
Net interest income (expense)	$	490		$	537		$	348		$	315		$	(248)	$	1,442
Provision for credit losses	83			113			296			62			—		554
Noninterest income	202			105			88			291			50		736
Noninterest expenses	418			303			264			300			26		1,311
Provision (benefit) for income taxes	36			51			(29)			49			(53)		54
Net income (loss)	$	155		$	175		$	(95)		$	195		$	(171)	$	259
Net credit-related charge-offs	$	9		$	31		$	127		$	—		$	—	$	167

Selected average balances:
Assets	$	13,272		$	18,563		$	11,369		$	10,943		$	25,595	$	79,742
Loans	12,604			18,263			10,889			9,955			(5)		51,706
Deposits	22,995			18,691			10,026			10,378			1,201		63,291

Statistical data:
Return on average assets (a)	0.86		%	1.18		%	(1.10)		%	2.28		%	n/m		0.43		%
Efficiency ratio (b)	60.20			47.16			60.41			49.60			n/m		60.10
Nine Months Ended September 30, 2019
Earnings summary:
Net interest income (expense)	$	558		$	614		$	373		$	281		$	(31)	$	1,795
Provision for credit losses	(6)			(11)			88			(4)			(1)		66
Noninterest income	218			121			97			272			36		744
Noninterest expenses	412			301			255			273			51		1,292
Provision (benefit) for income taxes	83			113			30			57			(31)		252
Net income (loss)	$	287		$	332		$	97		$	227		$	(14)	$	929
Net credit-related charge-offs (recoveries)	$	10		$	9		$	73		$	(6)		$	—	$	86

Selected average balances:
Assets	$	13,170		$	18,877		$	11,240		$	9,548		$	18,092	$	70,927
Loans	12,605			18,572			10,586			8,760			(9)		50,514
Deposits	19,959			16,420			8,690			7,876			1,964		54,909

Statistical data:
Return on average assets (a)	1.85		%	2.36		%	1.13		%	3.20		%	n/m		1.75		%
Efficiency ratio (b)	53.00			40.89			54.35			49.20			n/m		50.66

(a)Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.

n/m – not meaningful.