Revenue and Expenses

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue and Expenses

Note 18: Revenue and Expenses

Revenue

Our revenue includes net interest income on financial instruments and noninterest income. Table 18.1 presents our

revenue by operating segment. For additional description of our

operating segments, including additional financial information

and the underlying management accounting process, see

Note 17 (Operating Segments). For a description of our revenue from contracts with customers, see Note 21 (Revenue and Expenses) in our 2023 Form 10-K.

Table 18.1: Revenue by Operating Segment

(in millions)	Consumer Banking and Lending		Commercial Banking	Corporate and Investment Banking	Wealth and Investment Management	Corporate	Reconciling Items (1)	Consolidated Company
Quarter ended March 31, 2024
Net interest income (2)	$	7,110	2,278	2,027	869	32	(89)	12,227
Noninterest income:
Deposit-related fees	677		284	262	6	1	—	1,230
Lending-related fees (2)	24		138	203	2	—	—	367
Investment advisory and other asset-based fees (3)	—		23	41	2,267	—	—	2,331
Commissions and brokerage services fees	—		—	81	545	—	—	626
Investment banking fees	(2)		17	647	—	(35)	—	627
Card fees:
Card interchange and network revenue (4)	870		54	15	1	1	—	941
Other card fees (2)	120		—	—	—	—	—	120
Total card fees	990		54	15	1	1	—	1,061
Mortgage banking (2)	193		—	40	(3)	—	—	230
Net gains from trading activities (2)	—		—	1,405	44	5	—	1,454
Net losses from debt securities (2)	—		—	—	—	(25)	—	(25)
Net gains (losses) from equity securities (2)	—		20	5	—	(7)	—	18
Lease income (2)	—		149	122	—	150	—	421
Other (2)	99		189	134	11	201	(338)	296
Total noninterest income	1,981		874	2,955	2,873	291	(338)	8,636
Total revenue	$	9,091	3,152	4,982	3,742	323	(427)	20,863
Quarter ended March 31, 2023
Net interest income (2)	$	7,433	2,489	2,461	1,044	16	(107)	13,336
Noninterest income:
Deposit-related fees	672		236	236	5	(1)	—	1,148
Lending-related fees (2)	31		129	194	2	—	—	356
Investment advisory and other asset-based fees (3)	—		18	35	2,061	—	—	2,114
Commissions and brokerage services fees	—		—	78	541	—	—	619
Investment banking fees	—		20	314	—	(8)	—	326
Card fees:
Card interchange and network revenue (4)	863		56	17	1	1	—	938
Other card fees (2)	95		—	—	—	—	—	95
Total card fees	958		56	17	1	1	—	1,033
Mortgage banking (2)	160		—	75	(3)	—	—	232
Net gains (losses) from trading activities (2)	—		(1)	1,257	23	63	—	1,342
Net gains from debt securities (2)	—		—	—	—	—	—	—
Net losses from equity securities (2)	—		(12)	(1)	(2)	(342)	—	(357)
Lease income (2)	—		169	42	—	136	—	347
Other (2)	110		203	194	9	156	(439)	233
Total noninterest income	1,931		818	2,441	2,637	5	(439)	7,393
Total revenue	$	9,364	3,307	4,902	3,681	21	(546)	20,729

(1)Taxable-equivalent adjustments related to tax-exempt income on certain loans and debt securities are included in net interest income, while taxable-equivalent adjustments related to income tax credits for affordable housing and renewable energy investments are included in noninterest income, in each case with corresponding impacts to income tax expense (benefit). Adjustments are included in Corporate, Commercial Banking, and Corporate and Investment Banking and are eliminated to reconcile to the Company’s consolidated financial results.

(2)These revenue types are related to financial assets and liabilities, including loans, leases, securities and derivatives, with additional details included in other footnotes to our financial statements.

(3)We earned trailing commissions of $231 million and $227 million for the quarters ended March 31, 2024 and 2023, respectively.

(4)The cost of credit card rewards and rebates of $651 million and $592 million for the quarters ended March 31, 2024 and 2023, respectively, are presented net against the related revenue.

Expenses

OPERATING LOSSES Operating losses consist of expenses related to:

•Legal actions such as litigation and regulatory matters. For additional information on legal actions, see Note 10 (Legal Actions);

•Customer remediation activities, which are associated with our efforts to identify areas or instances where customers may have experienced financial harm and provide remediation as appropriate. We have accrued for the probable and estimable costs related to our customer remediation activities, which amounts may change based on additional facts and information, as well as ongoing reviews and communications with our regulators; and

•Other business activities such as deposit overdraft losses, fraud losses, and isolated instances of customer redress.

Table 18.2 provides the components of our operating losses included in our consolidated statement of income.

Table 18.2: Operating Losses

	Quarter ended March 31,
($ in millions)	2024		2023
Legal actions	$	17	6
Customer remediation	428		57
Other	188		204
Total operating losses	$	633	267

Operating losses may have significant variability given the inherent and unpredictable nature of legal actions and customer remediation activities. The timing and determination of the amount of any associated losses for these matters depends on a variety of factors, some of which are outside of our control.

OTHER EXPENSES Regulatory Charges and Assessments expense, which is included in other noninterest expense, was $551 million in first quarter 2024, compared with $271 million in the same period a year ago, and predominantly consisted of Federal Deposit Insurance Corporation (FDIC) deposit assessment expense.

In November 2023, the FDIC finalized a rule to recover losses to the FDIC deposit insurance fund as a result of bank failures in the first half of 2023. Under the rule, the FDIC will collect a special assessment based on an insured depository institution’s estimated amount of uninsured deposits. Upon the FDIC’s finalization of the rule, we expensed an estimated amount of our special assessment of $1.9 billion (pre-tax) in fourth quarter 2023. Subsequent to the filing of our 2023 Form 10-K, the FDIC provided an update on losses to the deposit insurance fund, and we expensed an additional $284 million (pre-tax) in first quarter 2024 for the estimated amount of the special assessment. We expect the ultimate amount of the special assessment may continue to change as the FDIC determines the actual net losses to the deposit insurance fund.