Commitments, Contingent Liabilities and Guarantees (Tables)

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Summary of Significant Commitments

The following table reflects a summary of significant commitments as of:

($ in millions)	September 30, 2023		December 31, 2022
Commitments to extend credit	$	84,505	83,437
Letters of credit	2,137		2,009
Forward contracts related to residential mortgage loans held for sale	869		1,869
Capital commitments for private equity investments	171		163
Capital expenditures	85		94
Purchase obligations	80		113

Credit Risk Associated with Commitments

Risk ratings of outstanding commitments to extend credit under this risk rating system are summarized in the following table as of:

($ in millions)	September 30, 2023		December 31, 2022
Pass	$	82,292	81,345
Special mention	1,017		976
Substandard	1,196		1,116
Total commitments to extend credit	$	84,505	83,437

Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party

Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of September 30, 2023:

($ in millions)
Less than 1 year(a)	$	1,058
1 - 5 years(a)	1,073
Over 5 years	6
Total letters of credit	$	2,137

(a)Includes $8 and $3 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire in less than 1 year and between 1 - 5 years, respectively.

Credit Risk Associated with Letters of Credit

Risk ratings of outstanding letters of credit under this risk rating system are summarized in the following table as of:

($ in millions)	September 30, 2023		December 31, 2022
Pass	$	1,967	1,827
Special mention	48		47
Substandard	122		135
Total letters of credit	$	2,137	2,009

Visa Funding and Bancorp Cash Payments

After the Bancorp’s sale of the Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilutive adjustments to the conversion of Class B Shares into Class A Shares, and along with other terms of the total return swap, required the Bancorp to make cash payments in varying amounts to the swap counterparty as follows:

Period ($ in millions)	Visa Funding Amount		Bancorp Cash Payment Amount
Q2 2010	$	500	20
Q4 2010	800		35
Q2 2011	400		19
Q1 2012	1,565		75
Q3 2012	150		6
Q3 2014	450		18
Q2 2018	600		26
Q3 2019	300		12
Q4 2021	250		11
Q2 2022	600		25
Q4 2022	350		15
Q2 2023	500		21
Q3 2023	150		(a)

(a)The Bancorp made a cash payment of $6 million to the swap counterparty on October 11, 2023 as a result of the Visa escrow funding in the third quarter of 2023.