| Schedule of Segment Results and Reconciliation |
The following table presents our business segment results for the three and six months ended June 30, 2022 and 2021, selected balance sheet data as of June 30, 2022 and 2021, 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 June 30, 2022 | | (Dollars in millions) | | Credit Card | | Consumer Banking | | Commercial Banking(1) | | Other(1) | | Consolidated Total | | Net interest income (loss) | | $ | 3,899 | | | $ | 2,147 | | | $ | 635 | | | $ | (164) | | | $ | 6,517 | | | Non-interest income (loss) | | 1,410 | | | 96 | | | 272 | | | (63) | | | 1,715 | | Total net revenue (loss)(2) | | 5,309 | | | 2,243 | | | 907 | | | (227) | | | 8,232 | | | Provision for credit losses | | 581 | | | 281 | | | 222 | | | 1 | | | 1,085 | | | Non-interest expense | | 2,771 | | | 1,286 | | | 485 | | | 41 | | | 4,583 | | | Income (loss) from continuing operations before income taxes | | 1,957 | | | 676 | | | 200 | | | (269) | | | 2,564 | | | Income tax provision (benefit) | | 466 | | | 160 | | | 48 | | | (141) | | | 533 | | | Income (loss) from continuing operations, net of tax | | $ | 1,491 | | | $ | 516 | | | $ | 152 | | | $ | (128) | | | $ | 2,031 | | | Loans held for investment | | $ | 120,880 | | | $ | 81,531 | | | $ | 93,973 | | | $ | 0 | | | $ | 296,384 | | | Deposits | | 0 | | | 255,904 | | | 38,844 | | | 13,137 | | | 307,885 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2022 | | (Dollars in millions) | | Credit Card | | Consumer Banking | | Commercial Banking(1) | | Other(1) | | Consolidated Total | | Net interest income (loss) | | $ | 7,738 | | | $ | 4,260 | | | $ | 1,242 | | | $ | (326) | | | $ | 12,914 | | | Non-interest income (loss) | | 2,868 | | | 201 | | | 549 | | | (127) | | | 3,491 | | Total net revenue (loss)(2) | | 10,606 | | | 4,461 | | | 1,791 | | | (453) | | | 16,405 | | | Provision (benefit) for credit losses | | 1,126 | | | 411 | | | 230 | | | (5) | | | 1,762 | | | Non-interest expense | | 5,554 | | | 2,522 | | | 973 | | | 85 | | | 9,134 | | | Income (loss) from continuing operations before income taxes | | 3,926 | | | 1,528 | | | 588 | | | (533) | | | 5,509 | | | Income tax provision (benefit) | | 935 | | | 362 | | | 140 | | | (362) | | | 1,075 | | | Income (loss) from continuing operations, net of tax | | $ | 2,991 | | | $ | 1,166 | | | $ | 448 | | | $ | (171) | | | $ | 4,434 | | | Loans held for investment | | $ | 120,880 | | | $ | 81,531 | | | $ | 93,973 | | | $ | 0 | | | $ | 296,384 | | | Deposits | | 0 | | | 255,904 | | | 38,844 | | | 13,137 | | | 307,885 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2021 | | (Dollars in millions) | | Credit Card | | Consumer Banking | | Commercial Banking(1) | | Other(1) | | Consolidated Total | | Net interest income (loss) | | $ | 3,217 | | | $ | 2,101 | | | $ | 460 | | | $ | (35) | | | $ | 5,743 | | | Non-interest income (loss) | | 1,253 | | | 144 | | | 257 | | | (23) | | | 1,631 | | Total net revenue (loss)(2) | | 4,470 | | | 2,245 | | | 717 | | | (58) | | | 7,374 | | | Provision (benefit) for credit losses | | (635) | | | (306) | | | (219) | | | 0 | | | (1,160) | | | Non-interest expense | | 2,263 | | | 1,123 | | | 417 | | | 163 | | | 3,966 | | | Income (loss) from continuing operations before income taxes | | 2,842 | | | 1,428 | | | 519 | | | (221) | | | 4,568 | | | Income tax provision (benefit) | | 672 | | | 337 | | | 123 | | | (101) | | | 1,031 | | | Income (loss) from continuing operations, net of tax | | $ | 2,170 | | | $ | 1,091 | | | $ | 396 | | | $ | (120) | | | $ | 3,537 | | | Loans held for investment | | $ | 101,017 | | | $ | 74,759 | | | $ | 73,821 | | | $ | 0 | | | $ | 249,597 | | | Deposits | | 0 | | | 251,155 | | | 42,973 | | | 12,180 | | | 306,308 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2021 | | (Dollars in millions) | | Credit Card | | Consumer Banking | | Commercial Banking(1) | | Other(1) | | Consolidated Total | | Net interest income (loss) | | $ | 6,589 | | | $ | 4,131 | | | $ | 980 | | | $ | (135) | | | $ | 11,565 | | | Non-interest income (loss) | | 2,282 | | | 285 | | | 497 | | | (142) | | | 2,922 | | Total net revenue (loss)(2) | | 8,871 | | | 4,416 | | | 1,477 | | | (277) | | | 14,487 | | | Provision (benefit) for credit losses | | (1,127) | | | (432) | | | (422) | | | (2) | | | (1,983) | | | Non-interest expense | | 4,398 | | | 2,240 | | | 836 | | | 232 | | | 7,706 | | | Income (loss) from continuing operations before income taxes | | 5,600 | | | 2,608 | | | 1,063 | | | (507) | | | 8,764 | | | Income tax provision (benefit) | | 1,325 | | | 615 | | | 251 | | | (291) | | | 1,900 | | | Income (loss) from continuing operations, net of tax | | $ | 4,275 | | | $ | 1,993 | | | $ | 812 | | | $ | (216) | | | $ | 6,864 | | | Loans held for investment | | $ | 101,017 | | | $ | 74,759 | | | $ | 73,821 | | | $ | 0 | | | $ | 249,597 | | | Deposits | | 0 | | | 251,155 | | | 42,973 | | | 12,180 | | | 306,308 | |
__________(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 $211 million and $403 million in the three and six months ended June 30, 2022, respectively, and $175 million and $355 million in the three and six months ended June 30, 2021, respectively, for credit card finance charges and fees charged off as uncollectible.
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| 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 six months ended June 30, 2022 and 2021. Table 12.2: Revenue from Contracts with Customers and Reconciliation to Segment Results | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2022 | | (Dollars in millions) | | Credit Card | | Consumer Banking | | Commercial Banking(1) | | Other(1) | | Consolidated Total | | Contract revenue: | | | | | | | | | | | Interchange fees, net(2) | | $ | 1,093 | | | $ | 80 | | | $ | 28 | | | $ | 0 | | | $ | 1,201 | | | Service charges and other customer-related fees | | 0 | | | 21 | | | 63 | | | 0 | | | 84 | | | Other | | 98 | | | 21 | | | 3 | | | 0 | | | 122 | | | Total contract revenue | | 1,191 | | | 122 | | | 94 | | | 0 | | | 1,407 | | | Revenue (reduction) from other sources | | 219 | | | (26) | | | 178 | | | (63) | | | 308 | | | Total non-interest income (loss) | | $ | 1,410 | | | $ | 96 | | | $ | 272 | | | $ | (63) | | | $ | 1,715 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2022 | | (Dollars in millions) | | Credit Card | | Consumer Banking | | Commercial Banking(1) | | Other(1) | | Consolidated Total | | Contract revenue: | | | | | | | | | | | Interchange fees, net(2) | | $ | 2,030 | | | $ | 151 | | | $ | 52 | | | $ | 1 | | | $ | 2,234 | | | Service charges and other customer-related fees | | 0 | | | 47 | | | 128 | | | (1) | | | 174 | | | Other | | 193 | | | 38 | | | 1 | | | 0 | | | 232 | | | Total contract revenue | | 2,223 | | | 236 | | | 181 | | | 0 | | | 2,640 | | | Revenue (reduction) from other sources | | 645 | | | (35) | | | 368 | | | (127) | | | 851 | | | Total non-interest income (loss) | | $ | 2,868 | | | $ | 201 | | | $ | 549 | | | $ | (127) | | | $ | 3,491 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2021 | | (Dollars in millions) | | Credit Card | | Consumer Banking | | Commercial Banking(1) | | Other(1) | | Consolidated Total | | Contract revenue: | | | | | | | | | | | Interchange fees, net(2) | | $ | 925 | | | $ | 67 | | | $ | 24 | | | $ | 0 | | | $ | 1,016 | | | Service charges and other customer-related fees | | 0 | | | 45 | | | 66 | | | 0 | | | 111 | | | Other | | 94 | | | 19 | | | 1 | | | 0 | | | 114 | | | Total contract revenue | | 1,019 | | | 131 | | | 91 | | | 0 | | | 1,241 | | | Revenue (reduction) from other sources | | 234 | | | 13 | | | 166 | | | (23) | | | 390 | | | Total non-interest income (loss) | | $ | 1,253 | | | $ | 144 | | | $ | 257 | | | $ | (23) | | | $ | 1,631 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2021 | | (Dollars in millions) | | Credit Card | | Consumer Banking | | Commercial Banking(1) | | Other(1) | | Consolidated Total | | Contract revenue: | | | | | | | | | | | Interchange fees, net(2) | | $ | 1,668 | | | $ | 124 | | | $ | 41 | | | $ | 0 | | | $ | 1,833 | | | Service charges and other customer-related fees | | 0 | | | 89 | | | 116 | | | 0 | | | 205 | | | Other | | 164 | | | 38 | | | 2 | | | 0 | | | 204 | | | Total contract revenue | | 1,832 | | | 251 | | | 159 | | | 0 | | | 2,242 | | | Revenue (reduction) from other sources | | 450 | | | 34 | | | 338 | | | (142) | | | 680 | | | Total non-interest income (loss) | | $ | 2,282 | | | $ | 285 | | | $ | 497 | | | $ | (142) | | | $ | 2,922 | |
__________(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.
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