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Business Segment Information
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Business Segment Information
Business Segment Information
Effective April 1, 2016, to align the segments with how the Corporation manages the businesses beginning in the three months ended June 30, 2016, the Corporation changed its basis of presentation, and following such change, reports its results of operations through the following four business segments: Consumer Banking, GWIM, Global Banking and Global Markets, with the remaining operations recorded in All Other. For more information on this segment realignment, see Note 24 – Business Segment Information to the Consolidated Financial Statements of Exhibit 99.2 to the Corporation's Current Report on Form 8-K filed on August 1, 2016.
Consumer Banking
Consumer Banking offers a diversified range of credit, banking and investment products and services to consumers and small businesses. Consumer Banking product offerings include traditional savings accounts, money market savings accounts, CDs and IRAs, noninterest- and interest-bearing checking accounts, investment accounts and products, as well as credit and debit cards, residential mortgages and home equity loans, and direct and indirect loans to consumers and small businesses in the U.S. Consumer Banking includes the impact of servicing residential mortgages and home equity loans in the core portfolio. Customers and clients have access to a franchise network that stretches coast to coast through 33 states and the District of Columbia. The franchise network includes approximately 4,700 financial centers, 16,000 ATMs, nationwide call centers, and online and mobile platforms.
Global Wealth & Investment Management
GWIM provides a high-touch client experience through a network of financial advisors focused on clients with over $250,000 in total investable assets, including tailored solutions to meet clients’ needs through a full set of investment management, brokerage, banking and retirement products. GWIM also provides comprehensive wealth management solutions targeted to high net worth and ultra high net worth clients, as well as customized solutions to meet clients’ wealth structuring, investment management, trust and banking needs, including specialty asset management services.
Global Banking
Global Banking provides a wide range of lending-related products and services, integrated working capital management and treasury solutions to clients, and underwriting and advisory services through the Corporation’s network of offices and client relationship teams. Global Banking’s lending products and services include commercial loans, leases, commitment facilities, trade finance, real estate lending and asset-based lending. Global Banking’s treasury solutions business includes treasury management, foreign exchange and short-term investing options. Global Banking also provides investment banking products to clients such as debt and equity underwriting and distribution, and merger-related and other advisory services. The economics of most investment banking and underwriting activities are shared primarily between Global Banking and Global Markets based on the activities performed by each segment. Global Banking clients generally include middle-market companies, commercial real estate firms, not-for-profit companies, large global corporations, financial institutions, leasing clients, and mid-sized U.S.-based businesses requiring customized and integrated financial advice and solutions.
Global Markets
Global Markets offers sales and trading services, including research, to institutional clients across fixed-income, credit, currency, commodity and equity businesses. Global Markets product coverage includes securities and derivative products in both the primary and secondary markets. Global Markets provides market-making, financing, securities clearing, settlement and custody services globally to institutional investor clients in support of their investing and trading activities. Global Markets also works with commercial and corporate clients to provide risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income and mortgage-related products. As a result of market-making activities in these products, Global Markets may be required to manage risk in a broad range of financial products including government securities, equity and equity-linked securities, high-grade and high-yield corporate debt securities, syndicated loans, MBS, commodities and ABS. In addition, the economics of most investment banking and underwriting activities are shared primarily between Global Markets and Global Banking based on the activities performed by each segment.

All Other
All Other consists of ALM activities, equity investments, the international consumer card business, non-core mortgage loans and servicing activities, the net impact of periodic revisions to the MSR valuation model for both core and non-core MSRs, liquidating businesses, residual expense allocations and other. ALM activities encompass certain residential mortgages, debt securities, interest rate and foreign currency risk management activities, the impact of certain allocation methodologies and accounting hedge ineffectiveness. The results of certain ALM activities are allocated to the business segments.

Basis of Presentation
The management accounting and reporting process derives segment and business results by utilizing allocation methodologies for revenue and expense. The net income derived for the businesses is dependent upon revenue and cost allocations using an activity-based costing model, funds transfer pricing, and other methodologies and assumptions management believes are appropriate to reflect the results of the business.
Total revenue, net of interest expense, includes net interest income on an FTE basis and noninterest income. The adjustment of net interest income to an FTE basis results in a corresponding increase in income tax expense. The segment results also reflect certain revenue and expense methodologies that are utilized to determine net income. The net interest income of the businesses includes the results of a funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics. In segments where the total of liabilities and equity exceeds assets, which are generally deposit-taking segments, the Corporation allocates assets to match liabilities. Net interest income of the business segments also includes an allocation of net interest income generated by certain of the Corporation’s ALM activities.
In addition, the business segments are impacted by the migration of customers and clients and their deposit, loan and brokerage balances between businesses. Subsequent to the date of migration, the associated net interest income, noninterest income and noninterest expense are recorded in the business to which the customers or clients migrated.
The Corporation’s ALM activities include an overall interest rate risk management strategy that incorporates the use of various derivatives and cash instruments to manage fluctuations in earnings and capital that are caused by interest rate volatility. The Corporation’s goal is to manage interest rate sensitivity so that movements in interest rates do not significantly adversely affect earnings and capital. The results of a majority of the Corporation’s ALM activities are allocated to the business segments and fluctuate based on the performance of the ALM activities. ALM activities include external product pricing decisions including deposit pricing strategies, the effects of the Corporation’s internal funds transfer pricing process and the net effects of other ALM activities.
Certain expenses not directly attributable to a specific business segment are allocated to the segments. The most significant of these expenses include data and item processing costs and certain centralized or shared functions. Data processing costs are allocated to the segments based on equipment usage. Item processing costs are allocated to the segments based on the volume of items processed for each segment. The costs of certain other centralized or shared functions are allocated based on methodologies that reflect utilization.
The table below presents net income (loss) and the components thereto (with net interest income on an FTE basis) for 2015, 2014 and 2013, and total assets at December 31, 2015 and 2014 for each business segment, as well as All Other.
 
 
 
 
 
 
 
 
 
 
 
 
Results for Business Segments and All Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At and for the Year Ended December 31
 
 
Total Corporation (1)
 
Consumer Banking
(Dollars in millions)
 
 
 
 
2015
2014
2013
 
2015
2014
2013
Net interest income (FTE basis)
 
 
 
 
$
39,847

$
41,630

$
41,578

 
$
20,428

$
20,790

$
20,548

Noninterest income
 
 
 
 
44,007

45,115

46,783

 
11,097

11,038

11,820

Total revenue, net of interest expense (FTE basis)
 
 
 
 
83,854

86,745

88,361

 
31,525

31,828

32,368

Provision for credit losses
 
 
 
 
3,161

2,275

3,556

 
2,346

2,470

2,957

Noninterest expense
 
 
 
 
57,734

75,656

69,213

 
18,716

19,390

20,711

Income before income taxes (FTE basis)
 
 
 
 
22,959

8,814

15,592

 
10,463

9,968

8,700

Income tax expense (FTE basis)
 
 
 
 
7,123

3,294

5,053

 
3,814

3,717

3,186

Net income
 
 
 
 
$
15,836

$
5,520

$
10,539

 
$
6,649

$
6,251

$
5,514

Year-end total assets
 
 
 
 
$
2,144,287

$
2,104,539

 

 
$
645,427

$
599,066

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global Wealth &
Investment Management
 
Global Banking
 
 
 
 
 
2015
2014
2013
 
2015
2014
2013
Net interest income (FTE basis)
 
 
 
 
$
5,527

$
5,830

$
5,733

 
$
9,244

$
9,752

$
9,485

Noninterest income
 
 
 
 
12,507

12,573

11,735

 
8,377

8,514

7,744

Total revenue, net of interest expense (FTE basis)
 
 
 
 
18,034

18,403

17,468

 
17,621

18,266

17,229

Provision for credit losses
 
 
 
 
51

14

56

 
686

325

1,140

Noninterest expense
 
 
 
 
13,943

13,836

13,219

 
8,481

8,806

8,149

Income before income taxes (FTE basis)
 
 
 
 
4,040

4,553

4,193

 
8,454

9,135

7,940

Income tax expense (FTE basis)
 
 
 
 
1,473

1,698

1,536

 
3,114

3,353

2,912

Net income
 
 
 
 
$
2,567

$
2,855

$
2,657

 
$
5,340

$
5,782

$
5,028

Year-end total assets
 
 
 
 
$
296,271

$
274,954

 

 
$
386,132

$
353,637

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global Markets
 
All Other
 
 
 
 
 
2015
2014
2013
 
2015
2014
2013
Net interest income (FTE basis)
 
 
 
 
$
4,191

$
3,851

$
4,056

 
$
457

$
1,407

$
1,756

Noninterest income
 
 
 
 
10,822

12,279

11,322

 
1,204

711

4,162

Total revenue, net of interest expense (FTE basis)
 
 
 
 
15,013

16,130

15,378

 
1,661

2,118

5,918

Provision for credit losses
 
 
 
 
99

110

143

 
(21
)
(644
)
(740
)
Noninterest expense
 
 
 
 
11,374

11,989

12,222

 
5,220

21,635

14,912

Income (loss) before income taxes (FTE basis)
 
 
 
 
3,540

4,031

3,013

 
(3,538
)
(18,873
)
(8,254
)
Income tax expense (benefit) (FTE basis)
 
 
 
 
1,117

1,441

2,012

 
(2,395
)
(6,915
)
(4,593
)
Net income (loss)
 
 
 
 
$
2,423

$
2,590

$
1,001

 
$
(1,143
)
$
(11,958
)
$
(3,661
)
Year-end total assets
 
 
 
 
$
548,790

$
576,552

 

 
$
267,667

$
300,330

 


(1) 
There were no material intersegment revenues.
The table below presents a reconciliation of the four business segments’ total revenue, net of interest expense, on an FTE basis, and net income to the Consolidated Statement of Income, and total assets to the Consolidated Balance Sheet. The adjustments presented in the table below include consolidated income, expense and asset amounts not specifically allocated to individual business segments.
 
 
 
 
 
 
Business Segment Reconciliations
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
2015
 
2014
 
2013
Segments’ total revenue, net of interest expense (FTE basis)
$
82,193

 
$
84,627

 
$
82,443

Adjustments:
 

 
 

 
 

ALM activities
(231
)
 
(18
)
 
(646
)
Equity investment income
261

 
1,130

 
2,901

Liquidating businesses and other
1,631

 
1,006

 
3,663

FTE basis adjustment
(889
)
 
(851
)
 
(859
)
Consolidated revenue, net of interest expense
$
82,965

 
$
85,894

 
$
87,502

Segments’ total net income
$
16,979

 
$
17,478

 
$
14,200

Adjustments, net-of-taxes:
 

 
 

 
 

ALM activities
(708
)
 
(280
)
 
(934
)
Equity investment income
162

 
706

 
1,828

Liquidating businesses and other
(597
)
 
(12,384
)
 
(4,555
)
Consolidated net income
$
15,836

 
$
5,520

 
$
10,539

 
 
 
 
 
 
 
 
 
December 31
 
 
 
2015
 
2014
Segments’ total assets
 
 
$
1,876,620

 
$
1,804,209

Adjustments:
 
 
 

 
 

ALM activities, including securities portfolio
 
 
612,364

 
569,320

Equity investments
 
 
4,297

 
4,871

Liquidating businesses and other
 
 
140,013

 
169,586

Elimination of segment asset allocations to match liabilities
 
 
(489,007
)
 
(443,447
)
Consolidated total assets
 
 
$
2,144,287

 
$
2,104,539