Parent Company Financial Statements

12 Months Ended

Dec. 31, 2018

28. PARENT COMPANY FINANCIAL STATEMENTS

Condensed Statements of Income (Parent Company Only)
For the years ended December 31 ($ in millions)			2018	2017	2016
Income
Dividends from subsidiaries:
	Consolidated nonbank subsidiaries^(a)	$	1,890	2,343	1,886
Interest on loans to subsidiaries			24	21	18
Total income			1,914	2,364	1,904
Expenses
Interest			211	176	171
Other			34	42	18
Total expenses			245	218	189
Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries			1,669	2,146	1,715
Applicable income tax benefit			50	68	63
Income Before Change in Undistributed Earnings of Subsidiaries			1,719	2,214	1,778
Equity in undistributed earnings			474	(34)	(231)
Net Income Attributable to Bancorp		$	2,193	2,180	1,547
Other Comprehensive Income			-	-	-
Comprehensive Income Attributable to Bancorp		$	2,193	2,180	1,547

(a) The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $1.9 billion, $2.3 billion and $1.9 billion for the years ended December 31, 2018, 2017 and 2016, respectively.


Condensed Balance Sheets (Parent Company Only)
As of December 31 ($ in millions)			2018	2017
Assets
Cash		$	120	80
Short-term investments			3,642	3,493
Loans to subsidiaries:
	Nonbank subsidiaries		571	843
Total loans to subsidiaries			571	843
Investment in subsidiaries:
	Nonbank subsidiaries		17,921	17,530
Total investment in subsidiaries			17,921	17,530
Goodwill			80	80
Other assets			268	329
Total Assets		$	22,602	22,355
Liabilities
Other short-term borrowings		$	253	315
Accrued expenses and other liabilities			424	472
Long-term debt (external)			5,675	5,348
Total Liabilities		$	6,352	6,135
Equity
Common stock		$	2,051	2,051
Preferred stock			1,331	1,331
Capital surplus			2,873	2,790
Retained earnings			16,578	14,957
Accumulated other comprehensive (loss) income			(112)	73
Treasury stock			(6,471)	(5,002)
Noncontrolling interests			-	20
Total Equity			16,250	16,220
Total Liabilities and Equity		$	22,602	22,355


Condensed Statements of Cash Flows (Parent Company Only)
For the years ended December 31 ($ in millions)			2018	2017	2016
Operating Activities
Net income		$	2,193	2,180	1,547
Adjustments to reconcile net income to net cash provided by operating activities:
	Provision for deferred income taxes		3	2	-
	Equity in undistributed earnings		(474)	34	231
Net change in:
	Other assets		61	37	14
	Accrued expenses and other liabilities		(116)	(15)	(35)
Net Cash Provided by Operating Activities			1,667	2,238	1,757
Investing Activities
Net change in:
	Short-term investments		(149)	(419)	654
	Loans to subsidiaries		272	126	13
Net Cash Provided by (Used in) Investing Activities			123	(293)	667
Financing Activities
Net change in other short-term borrowings			(62)	(29)	(60)
Dividends paid on common stock			(467)	(430)	(402)
Dividends paid on preferred stock			(98)	(75)	(52)
Proceeds from issuance of long-term debt			895	697	-
Repayment of long-term debt			(500)	(500)	(1,250)
Repurchase of treasury stock and related forward contract			(1,453)	(1,605)	(661)
Other, net			(65)	(53)	3
Net Cash Used in Financing Activities			(1,750)	(1,995)	(2,422)
Increase (Decrease) in Cash			40	(50)	2
Cash at Beginning of Period			80	130	128
Cash at End of Period		$	120	80	130