Business Segment Information

12 Months Ended

Dec. 31, 2021

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.

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 primarily consists of ALM activities, liquidating businesses and certain expenses not otherwise allocated to a business segment. ALM activities encompass interest rate and foreign currency risk management activities for which substantially all of the results 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.

Effective October 1, 2021, a business activity previously included in the Global Markets segment is being reported as a liquidating business in All Other, consistent with a realignment

in performance reporting to senior management. While this activity was not material to Global Markets’ results of operations and historical results have not been restated, this activity’s noninterest expense of $309 million and $473 million for the three months ended September 30, 2021 and June 30, 2021 was elevated and would have been excluded from Global Markets’ results of operations for those periods under the new basis of presentation.

The table below 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 2021, 2020 and 2019, and total assets at December 31, 2021 and 2020 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)	2021		2020		2019		2021		2020		2019
Net interest income	$	43,361	$	43,859	$	49,486	$	24,929	$	24,698	$	28,158
Noninterest income	46,179		42,168		42,353		9,076		8,564		10,429
Total revenue, net of interest expense	89,540		86,027		91,839		34,005		33,262		38,587
Provision for credit losses	(4,594)		11,320		3,590		(1,035)		5,765		3,772
Noninterest expense	59,731		55,213		54,900		19,290		18,882		17,646
Income before income taxes	34,403		19,494		33,349		15,750		8,615		17,169
Income tax expense	2,425		1,600		5,919		3,859		2,111		4,207
Net income	$	31,978	$	17,894	$	27,430	$	11,891	$	6,504	$	12,962
Period-end total assets	$	3,169,495	$	2,819,627			$	1,131,142	$	988,580
	Global Wealth & Investment Management						Global Banking
	2021		2020		2019		2021		2020		2019
Net interest income	$	5,664	$	5,468	$	6,504	$	8,511	$	9,013	$	10,675
Noninterest income	15,084		13,116		13,034		12,364		9,974		9,808
Total revenue, net of interest expense	20,748		18,584		19,538		20,875		18,987		20,483
Provision for credit losses	(241)		357		82		(3,201)		4,897		414
Noninterest expense	15,258		14,160		13,825		10,632		9,342		9,011
Income before income taxes	5,731		4,067		5,631		13,444		4,748		11,058
Income tax expense	1,404		996		1,380		3,630		1,282		2,985
Net income	$	4,327	$	3,071	$	4,251	$	9,814	$	3,466	$	8,073
Period-end total assets	$	438,275	$	369,736			$	638,131	$	580,561
	Global Markets						All Other
	2021		2020		2019		2021		2020		2019
Net interest income	$	4,011	$	4,646	$	3,915	$	246	$	34	$	234
Noninterest income	15,244		14,119		11,699		(5,589)		(3,605)		(2,617)
Total revenue, net of interest expense	19,255		18,765		15,614		(5,343)		(3,571)		(2,383)
Provision for credit losses	65		251		(9)		(182)		50		(669)
Noninterest expense	13,032		11,417		10,728		1,519		1,412		3,690
Income (loss) before income taxes	6,158		7,097		4,895		(6,680)		(5,033)		(5,404)
Income tax expense (benefit)	1,601		1,845		1,395		(8,069)		(4,634)		(4,048)
Net income (loss)	$	4,557	$	5,252	$	3,500	$	1,389	$	(399)	$	(1,356)
Period-end total assets	$	747,794	$	616,609			$	214,153	$	264,141

(1)There were no material intersegment revenues

The tables below present noninterest income and the associated components for 2021, 2020 and 2019 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)	2021		2020		2019		2021		2020		2019		2021		2020		2019
Fees and commissions:
Card income
Interchange fees	$	4,560	$	3,954	$	3,834	$	3,597	$	3,027	$	3,174	$	43	$	36	$	59
Other card income	1,658		1,702		1,963		1,575		1,646		1,910		42		42		42
Total card income	6,218		5,656		5,797		5,172		4,673		5,084		85		78		101
Service charges
Deposit-related fees	6,271		5,991		6,588		3,538		3,417		4,218		72		67		68
Lending-related fees	1,233		1,150		1,086		—		—		—		—		—		—
Total service charges	7,504		7,141		7,674		3,538		3,417		4,218		72		67		68
Investment and brokerage services
Asset management fees	12,729		10,708		10,241		188		146		144		12,541		10,578		10,130
Brokerage fees	3,961		3,866		3,661		132		127		149		1,771		1,692		1,740
Total investment and brokerage services	16,690		14,574		13,902		320		273		293		14,312		12,270		11,870
Investment banking fees
Underwriting income	5,077		4,698		2,998		—		—		—		388		391		401
Syndication fees	1,499		861		1,184		—		—		—		—		—		—
Financial advisory services	2,311		1,621		1,460		—		—		—		—		—		—
Total investment banking fees	8,887		7,180		5,642		—		—		—		388		391		401
Total fees and commissions	39,299		34,551		33,015		9,030		8,363		9,595		14,857		12,806		12,440
Market making and similar activities	8,691		8,355		9,034		1		2		6		40		63		113
Other income (loss)	(1,811)		(738)		304		45		199		828		187		247		481
Total noninterest income	$	46,179	$	42,168	$	42,353	$	9,076	$	8,564	$	10,429	$	15,084	$	13,116	$	13,034
	Global Banking						Global Markets						All Other (1)
	2021		2020		2019		2021		2020		2019		2021		2020		2019
Fees and commissions:
Card income
Interchange fees	$	700	$	499	$	519	$	220	$	391	$	81	$	—	$	1	$	1
Other card income	13		14		13		—		—		(1)		28		—		(1)
Total card income	713		513		532		220		391		80		28		1		—
Service charges
Deposit-related fees	2,508		2,298		2,121		146		177		156		7		32		25
Lending-related fees	1,015		940		894		218		210		192		—		—		—
Total service charges	3,523		3,238		3,015		364		387		348		7		32		25
Investment and brokerage services
Asset management fees	—		—		—		—		—		—		—		(16)		(33)
Brokerage fees	104		74		34		1,979		1,973		1,738		(25)		—		—
Total investment and brokerage services	104		74		34		1,979		1,973		1,738		(25)		(16)		(33)
Investment banking fees
Underwriting income	2,187		2,070		1,227		2,725		2,449		1,555		(223)		(212)		(185)
Syndication fees	781		482		574		718		379		610		—		—		—
Financial advisory services	2,139		1,458		1,336		173		163		123		(1)		—		1
Total investment banking fees	5,107		4,010		3,137		3,616		2,991		2,288		(224)		(212)		(184)
Total fees and commissions	9,447		7,835		6,718		6,179		5,742		4,454		(214)		(195)		(192)
Market making and similar activities	145		103		235		8,760		8,471		7,065		(255)		(284)		1,615
Other income (loss)	2,772		2,036		2,855		305		(94)		180		(5,120)		(3,126)		(4,040)
Total noninterest income	$	12,364	$	9,974	$	9,808	$	15,244	$	14,119	$	11,699	$	(5,589)	$	(3,605)	$	(2,617)

(1)All Other includes eliminations of intercompany transactions.

Business Segment Reconciliations
(Dollars in millions)	2021		2020		2019
Segments’ total revenue, net of interest expense	$	94,883	$	89,598	$	94,222
Adjustments (1):
Asset and liability management activities	(4)		375		241
Liquidating businesses, eliminations and other	(5,339)		(3,946)		(2,624)
FTE basis adjustment	(427)		(499)		(595)
Consolidated revenue, net of interest expense	$	89,113	$	85,528	$	91,244
Segments’ total net income	30,589		18,293		28,786
Adjustments, net-of-tax (1):
Asset and liability management activities	11		279		202
Liquidating businesses, eliminations and other	1,378		(678)		(1,558)
Consolidated net income	$	31,978	$	17,894	$	27,430
			December 31
			2021		2020
Segments’ total assets			$	2,955,342	$	2,555,486
Adjustments (1):
Asset and liability management activities, including securities portfolio			1,363,626		1,176,071
Elimination of segment asset allocations to match liabilities			(1,216,891)		(977,685)
Other			67,418		65,755
Consolidated total assets			$	3,169,495	$	2,819,627

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