Business Segment Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

The Corporation 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.

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, checking accounts, and 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.

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, and underwriting and advisory services through the Corporation’s network of offices and client relationship teams. Global Banking also provides investment banking products to clients. The economics of certain investment banking and underwriting activities are shared primarily between Global Banking and Global Markets under an internal revenue-sharing arrangement. 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 and research services to institutional clients across fixed-income, credit, currency, commodity and equity businesses. 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 product coverage includes securities and derivative products in both the primary and secondary markets. Global Markets also works with commercial and corporate clients to provide risk management products. As a result of market-making activities, Global Markets may be required to manage risk in a broad range of financial products. In addition, the economics of certain investment banking and underwriting activities are shared primarily between Global Markets and Global Banking under an internal revenue-sharing arrangement.

All Other

All Other consists of ALM activities, equity investments, non-core mortgage loans and servicing activities, liquidating businesses and certain expenses not otherwise allocated to business segments. ALM activities encompass certain residential mortgages, debt securities, interest rate and foreign currency risk management activities. Substantially all of the results of 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.

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 substantially all 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 costs of certain centralized or shared functions are allocated based on methodologies that reflect utilization.

The following table presents net income (loss) and the components thereto (with net interest income on an FTE basis for the business segments, All Other and the total Corporation) for 2020, 2019 and 2018, and total assets at December 31, 2020 and 2019 for each business segment, as well as All Other.

Results of Business Segments and All Other
At and for the year ended December 31	Total Corporation (1)						Consumer Banking
(Dollars in millions)	2020		2019		2018		2020		2019		2018
Net interest income	$	43,859	$	49,486	$	48,772	$	24,698	$	28,158	$	27,025
Noninterest income	42,168		42,353		42,858		8,564		10,429		10,593
Total revenue, net of interest expense	86,027		91,839		91,630		33,262		38,587		37,618
Provision for credit losses	11,320		3,590		3,282		5,765		3,772		3,664
Noninterest expense	55,213		54,900		53,154		18,878		17,646		17,672
Income before income taxes	19,494		33,349		35,194		8,619		17,169		16,282
Income tax expense	1,600		5,919		7,047		2,112		4,207		4,150
Net income	$	17,894	$	27,430	$	28,147	$	6,507	$	12,962	$	12,132
Period-end total assets	$	2,819,627	$	2,434,079			$	988,580	$	804,093
	Global Wealth & Investment Management						Global Banking
	2020		2019		2018		2020		2019		2018
Net interest income	$	5,468	$	6,504	$	6,265	$	9,013	$	10,675	$	10,993
Noninterest income	13,116		13,034		13,188		9,974		9,808		9,008
Total revenue, net of interest expense	18,584		19,538		19,453		18,987		20,483		20,001
Provision for credit losses	357		82		86		4,897		414		8
Noninterest expense	14,154		13,825		14,015		9,337		9,011		8,745
Income before income taxes	4,073		5,631		5,352		4,753		11,058		11,248
Income tax expense	998		1,380		1,364		1,283		2,985		2,923
Net income	$	3,075	$	4,251	$	3,988	$	3,470	$	8,073	$	8,325
Period-end total assets	$	369,736	$	299,770			$	580,561	$	464,032
	Global Markets						All Other
	2020		2019		2018		2020		2019		2018
Net interest income	$	4,646	$	3,915	$	3,857	$	34	$	234	$	632
Noninterest income	14,120		11,699		12,326		(3,606)		(2,617)		(2,257)
Total revenue, net of interest expense	18,766		15,614		16,183		(3,572)		(2,383)		(1,625)
Provision for credit losses	251		(9)		—		50		(669)		(476)
Noninterest expense	11,422		10,728		10,835		1,422		3,690		1,887
Income (loss) before income taxes	7,093		4,895		5,348		(5,044)		(5,404)		(3,036)
Income tax expense (benefit)	1,844		1,395		1,390		(4,637)		(4,048)		(2,780)
Net income (loss)	$	5,249	$	3,500	$	3,958	$	(407)	$	(1,356)	$	(256)
Period-end total assets	$	616,609	$	641,809			$	264,141	$	224,375

(1)There were no material intersegment revenues.

The table below presents noninterest income and the associated components for 2020, 2019 and 2018 for each business segment, All Other and the total Corporation. For more information, see Note 2 – Net Interest Income and Noninterest Income.

Noninterest Income by Business Segment and All Other
	Total Corporation						Consumer Banking						Global Wealth & Investment Management
(Dollars in millions)	2020		2019		2018		2020		2019		2018		2020		2019		2018
Fees and commissions:
Card income
Interchange fees	$	3,954	$	3,834	$	3,866	$	3,027	$	3,174	$	3,196	$	36	$	59	$	81
Other card income	1,702		1,963		1,958		1,646		1,910		1,907		42		42		46
Total card income	5,656		5,797		5,824		4,673		5,084		5,103		78		101		127
Service charges
Deposit-related fees	5,991		6,588		6,667		3,417		4,218		4,300		67		68		73
Lending-related fees	1,150		1,086		1,100		—		—		—		—		—		—
Total service charges	7,141		7,674		7,767		3,417		4,218		4,300		67		68		73
Investment and brokerage services
Asset management fees	10,708		10,241		10,189		146		144		147		10,578		10,130		10,042
Brokerage fees	3,866		3,661		3,971		127		149		172		1,692		1,740		1,917
Total investment and brokerage services	14,574		13,902		14,160		273		293		319		12,270		11,870		11,959
Investment banking fees
Underwriting income	4,698		2,998		2,722		—		—		—		391		401		335
Syndication fees	861		1,184		1,347		—		—		—		—		—		—
Financial advisory services	1,621		1,460		1,258		—		—		—		—		—		2
Total investment banking fees	7,180		5,642		5,327		—		—		—		391		401		337
Total fees and commissions	34,551		33,015		33,078		8,363		9,595		9,722		12,806		12,440		12,496
Market making and similar activities	8,355		9,034		9,008		2		6		8		63		113		112
Other income (loss)	(738)		304		772		199		828		863		247		481		580
Total noninterest income	$	42,168	$	42,353	$	42,858	$	8,564	$	10,429	$	10,593	$	13,116	$	13,034	$	13,188
	Global Banking						Global Markets						All Other (1)
	2020		2019		2018		2020		2019		2018		2020		2019		2018
Fees and commissions:
Card income
Interchange fees	$	499	$	519	$	503	$	391	$	81	$	86	$	1	$	1	$	—
Other card income	14		13		8		—		(1)		(2)		—		(1)		(1)
Total card income	513		532		511		391		80		84		1		—		(1)
Service charges
Deposit-related fees	2,298		2,121		2,111		177		156		161		32		25		22
Lending-related fees	940		894		916		210		192		184		—		—		—
Total service charges	3,238		3,015		3,027		387		348		345		32		25		22
Investment and brokerage services
Asset management fees	—		—		—		—		—		—		(16)		(33)		—
Brokerage fees	74		34		94		1,973		1,738		1,780		—		—		8
Total investment and brokerage services	74		34		94		1,973		1,738		1,780		(16)		(33)		8
Investment banking fees
Underwriting income	2,070		1,227		1,090		2,449		1,555		1,495		(212)		(185)		(198)
Syndication fees	482		574		648		379		610		698		—		—		1
Financial advisory services	1,458		1,336		1,153		163		123		103		—		1		—
Total investment banking fees	4,010		3,137		2,891		2,991		2,288		2,296		(212)		(184)		(197)
Total fees and commissions	7,835		6,718		6,523		5,742		4,454		4,505		(195)		(192)		(168)
Market making and similar activities	103		235		260		8,471		7,065		7,260		(284)		1,615		1,368
Other income (loss)	2,036		2,855		2,225		(93)		180		561		(3,127)		(4,040)		(3,457)
Total noninterest income	$	9,974	$	9,808	$	9,008	$	14,120	$	11,699	$	12,326	$	(3,606)	$	(2,617)	$	(2,257)

(1)All Other includes eliminations of intercompany transactions.

Business Segment Reconciliations
(Dollars in millions)	2020		2019		2018
Segments’ total revenue, net of interest expense	$	89,599	$	94,222	$	93,255
Adjustments (1):
ALM activities	375		241		(325)
Liquidating businesses, eliminations and other	(3,947)		(2,624)		(1,300)
FTE basis adjustment	(499)		(595)		(610)
Consolidated revenue, net of interest expense	$	85,528	$	91,244	$	91,020
Segments’ total net income	18,301		28,786		28,403
Adjustments, net-of-tax (1):
ALM activities	279		202		(222)
Liquidating businesses, eliminations and other	(686)		(1,558)		(34)
Consolidated net income	$	17,894	$	27,430	$	28,147
			December 31
			2020		2019
Segments’ total assets			$	2,555,486	$	2,209,704
Adjustments (1):
ALM activities, including securities portfolio			1,176,071		721,806
Elimination of segment asset allocations to match liabilities			(977,685)		(565,378)
Other			65,755		67,947
Consolidated total assets			$	2,819,627	$	2,434,079

(1)Adjustments include consolidated income, expense and asset amounts not specifically allocated to individual business segments.