Business Segments and Revenue from Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Results and Reconciliation

The following table presents our business segment results for the three and nine months ended September 30, 2021 and 2020, selected balance sheet data as of September 30, 2021 and 2020, and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, loans held for investment and deposits.

Table 12.1: Segment Results and Reconciliation

	Three Months Ended September 30, 2021
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	3,620	$	2,159	$	578	$	(201)	$	6,156
Non-interest income (loss)	1,263		127		306		(22)		1,674
Total net revenue (loss)(2)	4,883		2,286		884		(223)		7,830
Provision (benefit) for credit losses	(198)		(91)		(53)		0		(342)
Non-interest expense	2,424		1,186		459		117		4,186
Income (loss) from continuing operations before income taxes	2,657		1,191		478		(340)		3,986
Income tax provision (benefit)	627		282		113		(140)		882
Income (loss) from continuing operations, net of tax	$	2,030	$	909	$	365	$	(200)	$	3,104
Loans held for investment	$	105,030	$	77,112	$	79,248	$	0	$	261,390
Deposits	0		252,387		43,347		10,204		305,938

	Nine Months Ended September 30, 2021
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	10,209	$	6,290	$	1,558	$	(336)	$	17,721
Non-interest income (loss)	3,545		412		803		(164)		4,596
Total net revenue (loss)(2)	13,754		6,702		2,361		(500)		22,317
Benefit for credit losses	(1,325)		(523)		(475)		(2)		(2,325)
Non-interest expense	6,822		3,426		1,295		349		11,892
Income (loss) from continuing operations before income taxes	8,257		3,799		1,541		(847)		12,750
Income tax provision (benefit)	1,952		897		364		(431)		2,782
Income (loss) from continuing operations, net of tax	$	6,305	$	2,902	$	1,177	$	(416)	$	9,968
Loans held for investment	$	105,030	$	77,112	$	79,248	$	0	$	261,390
Deposits	0		252,387		43,347		10,204		305,938

	Three Months Ended September 30, 2020
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	3,292	$	1,904	$	517	$	(158)	$	5,555
Non-interest income (loss)	1,013		107		237		469		1,826
Total net revenue (loss)(2)	4,305		2,011		754		311		7,381
Provision (benefit) for credit losses	450		(43)		(74)		(2)		331
Non-interest expense	2,003		1,011		424		110		3,548
Income (loss) from continuing operations before income taxes	1,852		1,043		404		203		3,502
Income tax provision	438		247		95		316		1,096
Income (loss) from continuing operations, net of tax	$	1,414	$	796	$	309	$	(113)	$	2,406
Loans held for investment	$	103,641	$	68,688	$	75,894	$	0	$	248,223
Deposits	0		249,684		36,783		19,258		305,725

	Nine Months Ended September 30, 2020
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Net interest income (loss)	$	10,363	$	5,226	$	1,526	$	(75)	$	17,040
Non-interest income	2,769		330		655		392		4,146
Total net revenue(2)	13,132		5,556		2,181		317		21,186
Provision for credit losses	7,096		1,693		1,209		2		10,000
Non-interest expense	6,180		3,038		1,261		568		11,047
Income (loss) from continuing operations before income taxes	(144)		825		(289)		(253)		139
Income tax provision (benefit)	(34)		195		(69)		(102)		(10)
Income (loss) from continuing operations, net of tax	$	(110)	$	630	$	(220)	$	(151)	$	149
Loans held for investment	$	103,641	$	68,688	$	75,894	$	0	$	248,223
Deposits	0		249,684		36,783		19,258		305,725

__________

(1)Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.

(2)Total net revenue was reduced by $123 million and $478 million in the three and nine months ended September 30, 2021, respectively, and $235 million and $942 million in the three and nine months ended September 30, 2020, respectively, for credit card finance charges and fees charged off as uncollectible.

Disaggregation of Revenue

The following table presents revenue from contracts with customers and a reconciliation to non-interest income by business segment for the three and nine months ended September 30, 2021 and 2020.

Table 12.2: Revenue from Contracts with Customers and Reconciliation to Segment Results

	Three Months Ended September 30, 2021
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	930	$	68	$	24	$	0	$	1,022
Service charges and other customer-related fees	0		42		71		0		113
Other	98		17		1		0		116
Total contract revenue	1,028		127		96		0		1,251
Revenue (reduction) from other sources	235		0		210		(22)		423
Total non-interest income (loss)	$	1,263	$	127	$	306	$	(22)	$	1,674

	Nine Months Ended September 30, 2021
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	2,598	$	192	$	65	$	0	$	2,855
Service charges and other customer-related fees	0		131		187		0		318
Other	262		55		3		0		320
Total contract revenue	2,860		378		255		0		3,493
Revenue (reduction) from other sources	685		34		548		(164)		1,103
Total non-interest income (loss)	$	3,545	$	412	$	803	$	(164)	$	4,596

	Three Months Ended September 30, 2020
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	703	$	54	$	17	$	1	$	775
Service charges and other customer-related fees	0		42		50		0		92
Other	109		5		1		0		115
Total contract revenue	812		101		68		1		982
Revenue from other sources	201		6		169		468		844
Total non-interest income	$	1,013	$	107	$	237	$	469	$	1,826

	Nine Months Ended September 30, 2020
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking(1)		Other(1)		Consolidated Total
Contract revenue:
Interchange fees, net(2)	$	2,003	$	152	$	45	$	(1)	$	2,199
Service charges and other customer-related fees	0		137		124		(1)		260
Other	236		27		2		0		265
Total contract revenue	2,239		316		171		(2)		2,724
Revenue from other sources	530		14		484		394		1,422
Total non-interest income	$	2,769	$	330	$	655	$	392	$	4,146

________

(1)Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category.

(2)Interchange fees are presented net of customer reward expenses