Business Segments (Tables)

6 Months Ended

Jun. 30, 2020

Results of Operations and Assets by Segment

The following tables present the results of operations and assets by business segment for the three months ended:


June 30, 2020 ($ in millions)	Commercial Banking		Branch Banking	Consumer Lending	Wealth and Asset Management	General Corporate and Other		Eliminations		Total
Net interest income	$	570	513	92	51	(26)		—		1,200
Provision for (benefit from) credit losses	457		52	10	(1)	(33)		—		485
Net interest income after provision for credit losses	113		461	82	52	7		—		715
Noninterest income:
Service charges on deposits	79		42	—	—	1		—		122
Commercial banking revenue	136		1	—	1	(1)		—		137
Wealth and asset management revenue	1		39	—	115	—		(35)	^(a)	120
Mortgage banking net revenue	—		2	96	1	—		—		99
Card and processing revenue	11		68	—	—	3		—		82
Leasing business revenue	57		—	—	—	—		—		57
Other noninterest income^(b)	10		15	2	4	(19)		—		12
Securities gains, net	—		—	—	—	21		—		21
Securities gains, net – non-qualifying hedges on MSRs	—		—	—	—	—		—		—
Total noninterest income	294		167	98	121	5		(35)		650
Noninterest expense:
Compensation and benefits	129		161	53	50	234		—		627
Technology and communications	3		1	2	—	84		—		90
Net occupancy expense^(d)	8		44	2	3	25		—		82
Leasing business expense	33		—	—	—	—		—		33
Equipment expense	7		10	—	—	15		—		32
Card and processing expense	2		28	—	—	(1)		—		29
Marketing expense	2		5	1	—	12		—		20
Other noninterest expense	221		205	62	69	(314)		(35)		208
Total noninterest expense	405		454	120	122	55		(35)		1,121
Income (loss) before income taxes	2		174	60	51	(43)		—		244
Applicable income tax expense (benefit)	(10)		36	12	11	—		—		49
Net income (loss)	12		138	48	40	(43)		—		195
Total goodwill	$	1,961	2,047	—	253	—		—		4,261
Total assets	$	76,437	77,219	26,451	11,680	11,119	^(c)	—		202,906

(a)Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income.

(b)Includes impairment charges of $12 for branches and land. For more information, refer to Note 8 and Note 23.

(c)Includes bank premises and equipment of $53 classified as held for sale. For more information, refer to Note 8.

(d)Includes impairment losses and termination charges of $3 for ROU assets related to certain operating leases. For more information, refer to Note 10.


June 30, 2019 ($ in millions)	Commercial Banking		Branch Banking	Consumer Lending	Wealth and Asset Management	General Corporate and Other		Eliminations		Total
Net interest income	$	629	620	83	48	(135)		—		1,245
Provision for (benefit from) credit losses	25		55	7	—	(2)		—		85
Net interest income after provision for credit losses	604		565	76	48	(133)		—		1,160
Noninterest income:
Service charges on deposits	82		63	—	—	(2)		—		143
Commercial banking revenue	105		1	—	—	1		—		107
Wealth and asset management revenue	1		40	—	117	—		(36)	^(a)	122
Mortgage banking net revenue	—		1	62	—	—		—		63
Card and processing revenue	18		73	—	1	—		—		92
Leasing business revenue	76		—	—	—	—		—		76
Other noninterest income^(b)	19		24	3	—	1		—		47
Securities gains, net	—		—	—	—	8		—		8
Securities gains, net – non-qualifying hedges on MSRs	—		—	2	—	—		—		2
Total noninterest income	301		202	67	118	8		(36)		660
Noninterest expense:
Compensation and benefits	119		152	52	57	261		—		641
Technology and communications	3		1	2	—	130		—		136
Net occupancy expense	7		43	3	3	32		—		88
Leasing business expense	38		—	—	—	—		—		38
Equipment expense	6		12	—	—	15		—		33
Card and processing expense	2		32	—	—	—		—		34
Marketing expense	2		18	1	1	19		—		41
Other noninterest expense	243		209	60	74	(318)		(36)		232
Total noninterest expense	420		467	118	135	139		(36)		1,243
Income (loss) before income taxes	485		300	25	31	(264)		—		577
Applicable income tax expense (benefit)	90		63	5	7	(41)		—		124
Net income (loss)	395		237	20	24	(223)		—		453
Total goodwill	$	630	1,655	—	190	1,809	^(d)	—		4,284
Total assets	$	74,033	69,577	25,506	9,841	(10,155)	^(c)	—		168,802

(a)Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income.

(b)Includes impairment charges of $2 for branches and land. For more information, refer to Note 8 and Note 23.

(c)Includes bank premises and equipment of $70 classified as held for sale. For more information, refer to Note 8.

(d)The Bancorp was in the process of completing its analysis of the allocation of the goodwill across its four business segments; therefore, goodwill was presented as part of General Corporate and Other as of June 30, 2019.

The following tables present the results of operations and assets by business segment for the six months ended:


June 30, 2020 ($ in millions)	Commercial Banking			Branch Banking	Consumer Lending	Wealth and Asset Management	General Corporate and Other		Eliminations		Total
Net interest income	$	1,078		1,017	181	88	65		—		2,429
Provision for credit losses	502			114	23	—	486		—		1,125
Net interest income after provision for credit losses	576			903	158	88	(421)		—		1,304
Noninterest income:
Service charges on deposits	162			107	—	1	—		—		270
Commercial banking revenue	260			2	—	1	(2)		—		261
Wealth and asset management revenue	2			84	—	244	—		(75)	^(a)	255
Mortgage banking net revenue	—			4	213	2	—		—		219
Card and processing revenue	26			133	—	1	7		—		167
Leasing business revenue	131		^(c)	—	—	—	—		—		131
Other noninterest income^(b)	(1)			34	6	9	(30)		—		18
Securities losses, net	—			—	—	—	(3)		—		(3)
Securities gains, net – non-qualifying hedges on MSRs	—			—	3	—	—		—		3
Total noninterest income	580			364	222	258	(28)		(75)		1,321
Noninterest expense:
Compensation and benefits	278			330	104	112	450		—		1,274
Technology and communications	6			1	5	—	171		—		183
Net occupancy expense^(e)	15			87	5	6	51		—		164
Leasing business expense	68			—	—	—	—		—		68
Equipment expense	14			21	—	—	29		—		64
Card and processing expense	4			58	—	—	(2)		—		60
Marketing expense	4			17	2	1	27		—		51
Other noninterest expense	495			426	128	147	(664)		(75)		457
Total noninterest expense	884			940	244	266	62		(75)		2,321
Income (loss) before income taxes	272			327	136	80	(511)		—		304
Applicable income tax expense (benefit)	35			69	29	16	(88)		—		61
Net income (loss)	237			258	107	64	(423)		—		243
Total goodwill	$	1,961		2,047	—	253	—		—		4,261
Total assets	$	76,437		77,219	26,451	11,680	11,119	^(d)	—		202,906

(a)Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income.

(b)Includes impairment charges of $14 for branches and land. For more information, refer to Note 8 and Note 23.

(c)Includes impairment charges of $3 for operating lease equipment. For more information, refer to Note 9 and Note 23.

(d)Includes bank premises and equipment of $53 classified as held for sale. For more information, refer to Note 8.

(e)Includes impairment losses and termination charges of $5 for ROU assets related to certain operating leases. For more information, refer to Note 10.


June 30, 2019 ($ in millions)	Commercial Banking		Branch Banking	Consumer Lending	Wealth and Asset Management	General Corporate and Other		Eliminations		Total
Net interest income	$	1,138	1,204	146	97	(258)		—		2,327
Provision for credit losses	46		107	20	—	2		—		175
Net interest income after provision for credit losses	1,092		1,097	126	97	(260)		—		2,152
Noninterest income:
Service charges on deposits	149		127	—	—	(2)		—		274
Commercial banking revenue	207		2	—	—	—		—		209
Wealth and asset management revenue	1		76	—	226	—		(69)	^(a)	234
Mortgage banking net revenue	—		2	117	—	—		—		119
Card and processing revenue	32		137	—	2	—		—		171
Leasing business revenue	108		—	—	—	—		—		108
Other noninterest income^(b)	30		42	7	5	532		—		616
Securities gains, net	—		—	—	—	25		—		25
Securities gains, net – non-qualifying hedges on MSRs	—		—	5	—	—		—		5
Total noninterest income	527		386	129	233	555		(69)		1,761
Noninterest expense:
Compensation and benefits	227		295	97	113	519		—		1,251
Technology and communications	5		2	4	1	207		—		219
Net occupancy expense	14		86	5	7	52		—		164
Leasing business expense	57		—	—	—	—		—		57
Equipment expense	12		24	—	—	27		—		63
Card and processing expense	4		61	—	—	(1)		—		64
Marketing expense	3		32	2	2	38		—		77
Other noninterest expense	454		407	112	144	(602)		(69)		446
Total noninterest expense	776		907	220	267	240		(69)		2,341
Income before income taxes	843		576	35	63	55		—		1,572
Applicable income tax expense	156		121	7	14	46		—		344
Net income	687		455	28	49	9		—		1,228
Total goodwill	$	630	1,655	—	190	1,809	^(d)	—		4,284
Total assets	$	74,033	69,577	25,506	9,841	(10,155)	^(c)	—		168,802

(a)Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income.

(b)Includes impairment charges of $22 for branches and land. For more information, refer to Note 8 and Note 23.

(c)Includes bank premises and equipment of $70 classified as held for sale. For more information, refer to Note 8.