|
Delaware
|
001-13300
|
54-1719854
|
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
|
1680 Capital One Drive,
|
|
|
|
McLean,
|
Virginia
|
|
22102
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of Each Class
|
Trading Symbol(s)
|
Name of Each Exchange on Which Registered
|
Common Stock (par value $.01 per share)
|
COF
|
New York Stock Exchange
|
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B
|
COF PRP
|
New York Stock Exchange
|
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series F
|
COF PRF
|
New York Stock Exchange
|
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series G
|
COF PRG
|
New York Stock Exchange
|
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series H
|
COF PRH
|
New York Stock Exchange
|
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series I
|
COF PRI
|
New York Stock Exchange
|
0.800% Senior Notes Due 2024
|
COF24
|
New York Stock Exchange
|
1.650% Senior Notes Due 2029
|
COF29
|
New York Stock Exchange
|
|
Item 2.02.
|
Results of Operations and Financial Condition.
|
Exhibit No.
|
|
Description
|
99.1
|
|
|
99.2
|
|
|
104
|
|
The cover page from this Current Report on Form 8-K, formatted in Inline XBRL
|
|
CAPITAL ONE FINANCIAL CORPORATION
|
|||
|
|
|||
Date: January 21, 2020
|
By:
|
/s/ TIMOTHY P. GOLDEN
|
||
|
|
Timothy P. Golden
|
||
|
|
Controller and Principal Accounting Officer
|
Contacts:
|
|
|
|
Investor Relations
|
Media Relations
|
||
Jeff Norris
|
Danielle Dietz
|
Sie Soheili
|
Tatiana Stead
|
703.720.2455
|
703.720.2455
|
703.720.3929
|
703.720.2352
|
|
Pre-Tax
|
Diluted EPS
|
||||
(Dollars in millions, except per share data)
|
Impact
|
Impact
|
||||
Initial allowance build on acquired Walmart portfolio
|
$
|
84
|
|
$
|
0.13
|
|
Walmart launch and related integration expenses
|
48
|
|
0.08
|
|
||
Cybersecurity Incident expenses, net of insurance
|
16
|
|
0.03
|
|
•
|
Total net revenue increased 7 percent to $7.4 billion.
|
•
|
Total non-interest expense increased 7 percent to $4.2 billion:
|
◦
|
42 percent increase in marketing.
|
(1)
|
Amounts excluding adjusting items are non-GAAP measures that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance, both in the current period and across periods. See Table 15 in Exhibit 99.2 for a reconciliation of our selected reported results to these non-GAAP measures.
|
◦
|
2 percent increase in operating expenses.
|
•
|
Pre-provision earnings increased 6 percent to $3.3 billion(2).
|
•
|
Provision for credit losses increased 31 percent to $1.8 billion:
|
◦
|
Net charge-offs of $1.7 billion.
|
◦
|
$135 million reserve build.
|
•
|
Net interest margin of 6.95 percent, increased 22 basis points.
|
•
|
Efficiency ratio of 56.03 percent.
|
•
|
Operating efficiency ratio of 46.47 percent.
|
•
|
Common equity Tier 1 capital ratio under Basel III Standardized Approach of 12.2 percent at December 31, 2019.
|
•
|
Period-end loans held for investment in the quarter increased $16.5 billion, or 7 percent, to $265.8 billion.
|
◦
|
Credit Card period-end loans increased $14.6 billion, or 13 percent, to $128.2 billion.
|
•
|
Domestic Card period-end loans increased $13.9 billion, or 13 percent, to $118.6 billion.
|
◦
|
Consumer Banking period-end loans increased $1.1 billion, or 2 percent, to $63.1 billion.
|
•
|
Auto period-end loans increased $1.1 billion, or 2 percent, to $60.4 billion.
|
◦
|
Commercial Banking period-end loans increased $849 million, or 1 percent, to $74.5 billion.
|
•
|
Average loans held for investment in the quarter increased $12.7 billion, or 5 percent, to $258.9 billion.
|
◦
|
Credit Card average loans increased $9.7 billion, or 9 percent, to $122.1 billion.
|
•
|
Domestic Card average loans increased $9.5 billion, or 9 percent, to $113.0 billion.
|
◦
|
Consumer Banking average loans increased $1.3 billion, or 2 percent, to $62.6 billion.
|
▪
|
Auto average loans increased $1.4 billion, or 2 percent, to $59.9 billion.
|
•
|
Period-end total deposits increased $5.5 billion, or 2 percent, to $262.7 billion, while average deposits increased $5.0 billion, or 2 percent, to $260.0 billion.
|
•
|
Interest-bearing deposits rate paid decreased 14 basis points to 1.41 percent.
|
(1)
|
Amounts excluding adjusting items are non-GAAP measures that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance, both in the current period and across periods. See Table 15 in Exhibit 99.2 for a reconciliation of our selected reported results to these non-GAAP measures.
|
(2)
|
Pre-provision earnings is calculated based on the sum of net interest income and non-interest income, less non-interest expense for the period.
|
•
|
Total net revenue increased 2 percent to $28.6 billion.
|
•
|
Total non-interest expense increased 4 percent to $15.5 billion:
|
◦
|
5 percent increase in marketing.
|
◦
|
4 percent increase in operating expenses.
|
•
|
Pre-provision earnings remained flat at $13.1 billion(2).
|
•
|
Provision for credit losses increased 6 percent to $6.2 billion.
|
•
|
Efficiency ratio of 54.15 percent.
|
◦
|
Efficiency ratio excluding adjusting items was 52.67 percent(1).
|
•
|
Operating efficiency ratio of 46.20 percent.
|
◦
|
Operating efficiency ratio excluding adjusting items was 44.76 percent(1).
|
(1)
|
Amounts excluding adjusting items are non-GAAP measures that we believe help investors and users of our financial information understand the effect of adjusting items on our selected reported results and provide alternate measurements of our performance, both in the current period and across periods. See Table 15 in Exhibit 99.2 for a reconciliation of our selected reported results to these non-GAAP measures.
|
(2)
|
Pre-provision earnings is calculated based on the sum of net interest income and non-interest income, less non-interest expense for the period.
|
Capital One Financial Corporation Consolidated Results
|
Page
|
||
|
Table 1:
|
||
|
Table 2:
|
||
|
Table 3:
|
||
|
Table 4:
|
||
|
Table 5:
|
||
|
Table 6:
|
||
|
Table 7:
|
||
|
Table 8:
|
||
Business Segment Results
|
|
||
|
Table 9:
|
||
|
Table 10:
|
||
|
Table 11:
|
||
|
Table 12:
|
||
|
Table 13:
|
||
Other
|
|
||
|
Table 14:
|
||
|
Table 15:
|
(1)
|
The information contained in this Financial Supplement is preliminary and based on data available at the time of the earnings presentation. Investors should refer to our Annual Report on Form 10-K for the period ended December 31, 2019 once it is filed with the Securities and Exchange Commission.
|
(2)
|
This Financial Supplement includes non-GAAP measures. We believe these non-GAAP measures are useful to investors and users of our financial information as they provide an alternate measurement of our performance and assist in assessing our capital adequacy and the level of return generated. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with generally accepted accounting principles in the U.S. (“GAAP”), nor are they necessarily comparable to non-GAAP measures that may be presented by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Q4 vs.
|
|
Year Ended December 31,
|
|||||||||||||||||||||||
(Dollars in millions, except per share data and as noted)
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
2019 vs.
|
|||||||||||||||||
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q4
|
|
2019
|
|
2018
|
|
2018
|
||||||||||||||||||
Income Statement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net interest income
|
|
$
|
6,066
|
|
|
$
|
5,737
|
|
|
$
|
5,746
|
|
|
$
|
5,791
|
|
|
$
|
5,820
|
|
|
6
|
%
|
|
4
|
%
|
|
$
|
23,340
|
|
|
$
|
22,875
|
|
|
2
|
%
|
Non-interest income
|
|
1,361
|
|
|
1,222
|
|
|
1,378
|
|
|
1,292
|
|
|
1,193
|
|
|
11
|
|
|
14
|
|
|
5,253
|
|
|
5,201
|
|
|
1
|
|
|||||||
Total net revenue(1)
|
|
7,427
|
|
|
6,959
|
|
|
7,124
|
|
|
7,083
|
|
|
7,013
|
|
|
7
|
|
|
6
|
|
|
28,593
|
|
|
28,076
|
|
|
2
|
|
|||||||
Provision for credit losses
|
|
1,818
|
|
|
1,383
|
|
|
1,342
|
|
|
1,693
|
|
|
1,638
|
|
|
31
|
|
|
11
|
|
|
6,236
|
|
|
5,856
|
|
|
6
|
|
|||||||
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Marketing
|
|
710
|
|
|
501
|
|
|
546
|
|
|
517
|
|
|
831
|
|
|
42
|
|
|
(15
|
)
|
|
2,274
|
|
|
2,174
|
|
|
5
|
|
|||||||
Operating expense
|
|
3,451
|
|
|
3,371
|
|
|
3,233
|
|
|
3,154
|
|
|
3,301
|
|
|
2
|
|
|
5
|
|
|
13,209
|
|
|
12,728
|
|
|
4
|
|
|||||||
Total non-interest expense
|
|
4,161
|
|
|
3,872
|
|
|
3,779
|
|
|
3,671
|
|
|
4,132
|
|
|
7
|
|
|
1
|
|
|
15,483
|
|
|
14,902
|
|
|
4
|
|
|||||||
Income from continuing operations before income taxes
|
|
1,448
|
|
|
1,704
|
|
|
2,003
|
|
|
1,719
|
|
|
1,243
|
|
|
(15
|
)
|
|
16
|
|
|
6,874
|
|
|
7,318
|
|
|
(6
|
)
|
|||||||
Income tax provision (benefit)
|
|
270
|
|
|
375
|
|
|
387
|
|
|
309
|
|
|
(21
|
)
|
|
(28
|
)
|
|
**
|
|
|
1,341
|
|
|
1,293
|
|
|
4
|
|
|||||||
Income from continuing operations, net of tax
|
|
1,178
|
|
|
1,329
|
|
|
1,616
|
|
|
1,410
|
|
|
1,264
|
|
|
(11
|
)
|
|
(7
|
)
|
|
5,533
|
|
|
6,025
|
|
|
(8
|
)
|
|||||||
Income (loss) from discontinued operations, net of tax
|
|
(2
|
)
|
|
4
|
|
|
9
|
|
|
2
|
|
|
(3
|
)
|
|
**
|
|
|
(33
|
)
|
|
13
|
|
|
(10
|
)
|
|
**
|
|
|||||||
Net income
|
|
1,176
|
|
|
1,333
|
|
|
1,625
|
|
|
1,412
|
|
|
1,261
|
|
|
(12
|
)
|
|
(7
|
)
|
|
5,546
|
|
|
6,015
|
|
|
(8
|
)
|
|||||||
Dividends and undistributed earnings allocated to participating securities(2)
|
|
(7
|
)
|
|
(10
|
)
|
|
(12
|
)
|
|
(12
|
)
|
|
(9
|
)
|
|
(30
|
)
|
|
(22
|
)
|
|
(41
|
)
|
|
(40
|
)
|
|
3
|
|
|||||||
Preferred stock dividends
|
|
(97
|
)
|
|
(53
|
)
|
|
(80
|
)
|
|
(52
|
)
|
|
(80
|
)
|
|
83
|
|
|
21
|
|
|
(282
|
)
|
|
(265
|
)
|
|
6
|
|
|||||||
Issuance cost for redeemed preferred stock(3)
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
**
|
|
|
**
|
|
|
(31
|
)
|
|
—
|
|
|
**
|
|
|||||||
Net income available to common stockholders
|
|
$
|
1,041
|
|
|
$
|
1,270
|
|
|
$
|
1,533
|
|
|
$
|
1,348
|
|
|
$
|
1,172
|
|
|
(18
|
)
|
|
(11
|
)
|
|
$
|
5,192
|
|
|
$
|
5,710
|
|
|
(9
|
)
|
Common Share Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Basic earnings per common share:(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income from continuing operations
|
|
$
|
2.26
|
|
|
$
|
2.70
|
|
|
$
|
3.24
|
|
|
$
|
2.87
|
|
|
$
|
2.50
|
|
|
(16
|
)%
|
|
(10
|
)%
|
|
$
|
11.07
|
|
|
$
|
11.92
|
|
|
(7
|
)%
|
Income (loss) from discontinued operations
|
|
—
|
|
|
0.01
|
|
|
0.02
|
|
|
—
|
|
|
(0.01
|
)
|
|
**
|
|
|
**
|
|
|
0.03
|
|
|
(0.02
|
)
|
|
**
|
|
|||||||
Net income per basic common share
|
|
$
|
2.26
|
|
|
$
|
2.71
|
|
|
$
|
3.26
|
|
|
$
|
2.87
|
|
|
$
|
2.49
|
|
|
(17
|
)
|
|
(9
|
)
|
|
$
|
11.10
|
|
|
$
|
11.90
|
|
|
(7
|
)
|
Diluted earnings per common share:(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income from continuing operations
|
|
$
|
2.25
|
|
|
$
|
2.68
|
|
|
$
|
3.22
|
|
|
$
|
2.86
|
|
|
$
|
2.49
|
|
|
(16
|
)
|
|
(10
|
)
|
|
$
|
11.02
|
|
|
$
|
11.84
|
|
|
(7
|
)
|
Income (loss) from discontinued operations
|
|
—
|
|
|
0.01
|
|
|
0.02
|
|
|
—
|
|
|
(0.01
|
)
|
|
**
|
|
|
**
|
|
|
0.03
|
|
|
(0.02
|
)
|
|
**
|
|
|||||||
Net income per diluted common share
|
|
$
|
2.25
|
|
|
$
|
2.69
|
|
|
$
|
3.24
|
|
|
$
|
2.86
|
|
|
$
|
2.48
|
|
|
(16
|
)
|
|
(9
|
)
|
|
$
|
11.05
|
|
|
$
|
11.82
|
|
|
(7
|
)
|
Weighted-average common shares outstanding (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Basic
|
|
460.9
|
|
|
469.5
|
|
|
470.8
|
|
|
469.4
|
|
|
470.0
|
|
|
(2
|
)
|
|
(2
|
)
|
|
467.6
|
|
|
479.9
|
|
|
(3
|
)
|
|||||||
Diluted
|
|
463.4
|
|
|
471.8
|
|
|
473.0
|
|
|
471.6
|
|
|
472.7
|
|
|
(2
|
)
|
|
(2
|
)
|
|
469.9
|
|
|
483.1
|
|
|
(3
|
)
|
|||||||
Common shares outstanding (period-end, in millions)
|
|
456.6
|
|
|
465.7
|
|
|
470.3
|
|
|
469.6
|
|
|
467.7
|
|
|
(2
|
)
|
|
(2
|
)
|
|
456.6
|
|
|
467.7
|
|
|
(2
|
)
|
|||||||
Dividends declared and paid per common share
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
—
|
|
|
—
|
|
|
$
|
1.60
|
|
|
$
|
1.60
|
|
|
—
|
|
Tangible book value per common share (period-end)(4)
|
|
83.72
|
|
|
80.46
|
|
|
77.65
|
|
|
72.86
|
|
|
69.20
|
|
|
4
|
|
|
21
|
|
|
83.72
|
|
|
69.20
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Q4 vs.
|
|
Year Ended December 31,
|
|||||||||||||||||||||||
(Dollars in millions)
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
2019 vs.
|
|||||||||||||||||
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q4
|
|
2019
|
|
2018
|
|
2018
|
||||||||||||||||||
Balance Sheet (Period-End)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Loans held for investment
|
|
$
|
265,809
|
|
|
$
|
249,355
|
|
|
$
|
244,460
|
|
|
$
|
240,273
|
|
|
$
|
245,899
|
|
|
7
|
%
|
|
8
|
%
|
|
$
|
265,809
|
|
|
$
|
245,899
|
|
|
8
|
%
|
Interest-earning assets
|
|
355,202
|
|
|
344,643
|
|
|
339,160
|
|
|
340,071
|
|
|
341,293
|
|
|
3
|
|
|
4
|
|
|
355,202
|
|
|
341,293
|
|
|
4
|
|
|||||||
Total assets
|
|
390,365
|
|
|
378,810
|
|
|
373,619
|
|
|
373,191
|
|
|
372,538
|
|
|
3
|
|
|
5
|
|
|
390,365
|
|
|
372,538
|
|
|
5
|
|
|||||||
Interest-bearing deposits
|
|
239,209
|
|
|
234,084
|
|
|
231,161
|
|
|
230,199
|
|
|
226,281
|
|
|
2
|
|
|
6
|
|
|
239,209
|
|
|
226,281
|
|
|
6
|
|
|||||||
Total deposits
|
|
262,697
|
|
|
257,148
|
|
|
254,535
|
|
|
255,107
|
|
|
249,764
|
|
|
2
|
|
|
5
|
|
|
262,697
|
|
|
249,764
|
|
|
5
|
|
|||||||
Borrowings
|
|
55,697
|
|
|
50,149
|
|
|
49,233
|
|
|
50,358
|
|
|
58,905
|
|
|
11
|
|
|
(5
|
)
|
|
55,697
|
|
|
58,905
|
|
|
(5
|
)
|
|||||||
Common equity
|
|
53,157
|
|
|
52,412
|
|
|
51,406
|
|
|
49,120
|
|
|
47,307
|
|
|
1
|
|
|
12
|
|
|
53,157
|
|
|
47,307
|
|
|
12
|
|
|||||||
Total stockholders’ equity
|
|
58,011
|
|
|
58,235
|
|
|
55,767
|
|
|
53,481
|
|
|
51,668
|
|
|
—
|
|
|
12
|
|
|
58,011
|
|
|
51,668
|
|
|
12
|
|
|||||||
Balance Sheet (Average Balances)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Loans held for investment
|
|
$
|
258,870
|
|
|
$
|
246,147
|
|
|
$
|
242,653
|
|
|
$
|
241,959
|
|
|
$
|
241,371
|
|
|
5
|
%
|
|
7
|
%
|
|
$
|
247,450
|
|
|
$
|
242,118
|
|
|
2
|
%
|
Interest-earning assets
|
|
349,150
|
|
|
340,949
|
|
|
338,026
|
|
|
337,793
|
|
|
334,714
|
|
|
2
|
|
|
4
|
|
|
341,510
|
|
|
332,738
|
|
|
3
|
|
|||||||
Total assets
|
|
383,162
|
|
|
374,905
|
|
|
371,095
|
|
|
370,394
|
|
|
365,243
|
|
|
2
|
|
|
5
|
|
|
374,924
|
|
|
363,036
|
|
|
3
|
|
|||||||
Interest-bearing deposits
|
|
236,250
|
|
|
232,063
|
|
|
230,452
|
|
|
227,572
|
|
|
222,827
|
|
|
2
|
|
|
6
|
|
|
231,609
|
|
|
221,760
|
|
|
4
|
|
|||||||
Total deposits
|
|
260,040
|
|
|
255,082
|
|
|
253,634
|
|
|
251,410
|
|
|
247,663
|
|
|
2
|
|
|
5
|
|
|
255,065
|
|
|
247,117
|
|
|
3
|
|
|||||||
Borrowings
|
|
51,442
|
|
|
49,413
|
|
|
49,982
|
|
|
53,055
|
|
|
53,994
|
|
|
4
|
|
|
(5
|
)
|
|
50,965
|
|
|
53,144
|
|
|
(4
|
)
|
|||||||
Common equity
|
|
52,641
|
|
|
52,566
|
|
|
50,209
|
|
|
48,359
|
|
|
46,753
|
|
|
—
|
|
|
13
|
|
|
50,960
|
|
|
45,831
|
|
|
11
|
|
|||||||
Total stockholders’ equity
|
|
58,148
|
|
|
57,245
|
|
|
54,570
|
|
|
52,720
|
|
|
51,114
|
|
|
2
|
|
|
14
|
|
|
55,690
|
|
|
50,192
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Q4 vs.
|
|
Year Ended December 31,
|
|||||||||||||||||||||||
(Dollars in millions, except as noted)
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
2019 vs.
|
|||||||||||||||||
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q4
|
|
2019
|
|
2018
|
|
2018
|
||||||||||||||||||
Performance Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net interest income growth (period over period)
|
|
6
|
%
|
|
—
|
|
|
(1
|
)%
|
|
—
|
|
|
1
|
%
|
|
**
|
|
|
**
|
|
|
2
|
%
|
|
2
|
%
|
|
**
|
|
|||||||
Non-interest income growth (period over period)
|
|
11
|
|
|
(11
|
)%
|
|
7
|
|
|
8
|
%
|
|
1
|
|
|
**
|
|
|
**
|
|
|
1
|
|
|
9
|
|
|
**
|
|
|||||||
Total net revenue growth (period over period)
|
|
7
|
|
|
(2
|
)
|
|
1
|
|
|
1
|
|
|
1
|
|
|
**
|
|
|
**
|
|
|
2
|
|
|
3
|
|
|
**
|
|
|||||||
Total net revenue margin(5)
|
|
8.51
|
|
|
8.16
|
|
|
8.43
|
|
|
8.39
|
|
|
8.38
|
|
|
35
|
bps
|
|
13
|
bps
|
|
8.37
|
|
|
8.44
|
|
|
(7
|
)bps
|
|||||||
Net interest margin(6)
|
|
6.95
|
|
|
6.73
|
|
|
6.80
|
|
|
6.86
|
|
|
6.96
|
|
|
22
|
|
|
(1
|
)
|
|
6.83
|
|
|
6.87
|
|
|
(4
|
)
|
|||||||
Return on average assets
|
|
1.23
|
|
|
1.42
|
|
|
1.74
|
|
|
1.52
|
|
|
1.38
|
|
|
(19
|
)
|
|
(15
|
)
|
|
1.48
|
|
|
1.66
|
|
|
(18
|
)
|
|||||||
Return on average tangible assets(7)
|
|
1.28
|
|
|
1.48
|
|
|
1.82
|
|
|
1.59
|
|
|
1.44
|
|
|
(20
|
)
|
|
(16
|
)
|
|
1.54
|
|
|
1.73
|
|
|
(19
|
)
|
|||||||
Return on average common equity(8)
|
|
7.93
|
|
|
9.63
|
|
|
12.14
|
|
|
11.13
|
|
|
10.05
|
|
|
(170
|
)
|
|
(212
|
)
|
|
10.16
|
|
|
12.48
|
|
|
(232
|
)
|
|||||||
Return on average tangible common equity(9)
|
|
11.07
|
|
|
13.45
|
|
|
17.26
|
|
|
16.11
|
|
|
14.78
|
|
|
(238
|
)
|
|
(371
|
)
|
|
14.37
|
|
|
18.56
|
|
|
(419
|
)
|
|||||||
Non-interest expense as a percentage of average loans held for investment
|
|
6.43
|
|
|
6.29
|
|
|
6.23
|
|
|
6.07
|
|
|
6.85
|
|
|
14
|
|
|
(42
|
)
|
|
6.26
|
|
|
6.15
|
|
|
11
|
|
|||||||
Efficiency ratio(10)
|
|
56.03
|
|
|
55.64
|
|
|
53.05
|
|
|
51.83
|
|
|
58.92
|
|
|
39
|
|
|
(289
|
)
|
|
54.15
|
|
|
53.08
|
|
|
107
|
|
|||||||
Operating efficiency ratio(11)
|
|
46.47
|
|
|
48.44
|
|
|
45.38
|
|
|
44.53
|
|
|
47.07
|
|
|
(197
|
)
|
|
(60
|
)
|
|
46.20
|
|
|
45.33
|
|
|
87
|
|
|||||||
Effective income tax rate for continuing operations
|
|
18.6
|
|
|
22.0
|
|
|
19.3
|
|
|
18.0
|
|
|
(1.7
|
)
|
|
(340
|
)
|
|
**
|
|
|
19.5
|
|
|
17.7
|
|
|
180
|
|
|||||||
Employees (period-end, in thousands)
|
|
51.9
|
|
|
52.1
|
|
|
50.7
|
|
|
48.8
|
|
|
47.6
|
|
|
—
|
|
|
9
|
%
|
|
51.9
|
|
|
47.6
|
|
|
9
|
%
|
|||||||
Credit Quality Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Allowance for loan and lease losses
|
|
$
|
7,208
|
|
|
$
|
7,037
|
|
|
$
|
7,133
|
|
|
$
|
7,313
|
|
|
$
|
7,220
|
|
|
2
|
%
|
|
—
|
|
|
$
|
7,208
|
|
|
$
|
7,220
|
|
|
—
|
|
Allowance as a percentage of loans held for investment
|
|
2.71
|
%
|
|
2.82
|
%
|
|
2.92
|
%
|
|
3.04
|
%
|
|
2.94
|
%
|
|
(11
|
)bps
|
|
(23
|
)bps
|
|
2.71
|
%
|
|
2.94
|
%
|
|
(23
|
)bps
|
|||||||
Net charge-offs
|
|
$
|
1,683
|
|
|
$
|
1,462
|
|
|
$
|
1,508
|
|
|
$
|
1,599
|
|
|
$
|
1,610
|
|
|
15
|
%
|
|
5
|
%
|
|
$
|
6,252
|
|
|
$
|
6,112
|
|
|
2
|
%
|
Net charge-off rate(12)
|
|
2.60
|
%
|
|
2.38
|
%
|
|
2.48
|
%
|
|
2.64
|
%
|
|
2.67
|
%
|
|
22
|
bps
|
|
(7
|
)bps
|
|
2.53
|
%
|
|
2.52
|
%
|
|
1
|
bps
|
|||||||
30+ day performing delinquency rate
|
|
3.51
|
|
|
3.28
|
|
|
3.15
|
|
|
3.23
|
|
|
3.62
|
|
|
23
|
|
|
(11
|
)
|
|
3.51
|
|
|
3.62
|
|
|
(11
|
)
|
|||||||
30+ day delinquency rate
|
|
3.74
|
|
|
3.51
|
|
|
3.35
|
|
|
3.40
|
|
|
3.84
|
|
|
23
|
|
|
(10
|
)
|
|
3.74
|
|
|
3.84
|
|
|
(10
|
)
|
|||||||
Capital Ratios(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Common equity Tier 1 capital
|
|
12.2
|
%
|
|
12.5
|
%
|
|
12.3
|
%
|
|
11.9
|
%
|
|
11.2
|
%
|
|
(30
|
)bps
|
|
100
|
bps
|
|
12.2
|
%
|
|
11.2
|
%
|
|
100
|
bps
|
|||||||
Tier 1 capital
|
|
13.7
|
|
|
14.4
|
|
|
13.8
|
|
|
13.4
|
|
|
12.7
|
|
|
(70
|
)
|
|
100
|
|
|
13.7
|
|
|
12.7
|
|
|
100
|
|
|||||||
Total capital
|
|
16.1
|
|
|
16.8
|
|
|
16.2
|
|
|
15.8
|
|
|
15.1
|
|
|
(70
|
)
|
|
100
|
|
|
16.1
|
|
|
15.1
|
|
|
100
|
|
|||||||
Tier 1 leverage
|
|
11.7
|
|
|
11.9
|
|
|
11.4
|
|
|
11.0
|
|
|
10.7
|
|
|
(20
|
)
|
|
100
|
|
|
11.7
|
|
|
10.7
|
|
|
100
|
|
|||||||
Tangible common equity (“TCE”)(14)
|
|
10.2
|
|
|
10.3
|
|
|
10.2
|
|
|
9.6
|
|
|
9.1
|
|
|
(10
|
)
|
|
110
|
|
|
10.2
|
|
|
9.1
|
|
|
110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Q4 vs.
|
|
Year Ended December 31,
|
|||||||||||||||||||||||
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
2019 vs.
|
|||||||||||||||||
(Dollars in millions, except per share data and as noted)
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q4
|
|
2019
|
|
2018
|
|
2018
|
|||||||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Loans, including loans held for sale
|
|
$
|
6,682
|
|
|
$
|
6,429
|
|
|
$
|
6,383
|
|
|
$
|
6,368
|
|
|
$
|
6,358
|
|
|
4
|
%
|
|
5
|
%
|
|
$
|
25,862
|
|
|
$
|
24,728
|
|
|
5
|
%
|
Investment securities
|
|
544
|
|
|
583
|
|
|
629
|
|
|
655
|
|
|
627
|
|
|
(7
|
)
|
|
(13
|
)
|
|
2,411
|
|
|
2,211
|
|
|
9
|
|
|||||||
Other
|
|
44
|
|
|
63
|
|
|
64
|
|
|
69
|
|
|
63
|
|
|
(30
|
)
|
|
(30
|
)
|
|
240
|
|
|
237
|
|
|
1
|
|
|||||||
Total interest income
|
|
7,270
|
|
|
7,075
|
|
|
7,076
|
|
|
7,092
|
|
|
7,048
|
|
|
3
|
|
|
3
|
|
|
28,513
|
|
|
27,176
|
|
|
5
|
|
|||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Deposits
|
|
832
|
|
|
901
|
|
|
870
|
|
|
817
|
|
|
756
|
|
|
(8
|
)
|
|
10
|
|
|
3,420
|
|
|
2,598
|
|
|
32
|
|
|||||||
Securitized debt obligations
|
|
118
|
|
|
123
|
|
|
139
|
|
|
143
|
|
|
138
|
|
|
(4
|
)
|
|
(14
|
)
|
|
523
|
|
|
496
|
|
|
5
|
|
|||||||
Senior and subordinated notes
|
|
236
|
|
|
299
|
|
|
310
|
|
|
314
|
|
|
297
|
|
|
(21
|
)
|
|
(21
|
)
|
|
1,159
|
|
|
1,125
|
|
|
3
|
|
|||||||
Other borrowings
|
|
18
|
|
|
15
|
|
|
11
|
|
|
27
|
|
|
37
|
|
|
20
|
|
|
(51
|
)
|
|
71
|
|
|
82
|
|
|
(13
|
)
|
|||||||
Total interest expense
|
|
1,204
|
|
|
1,338
|
|
|
1,330
|
|
|
1,301
|
|
|
1,228
|
|
|
(10
|
)
|
|
(2
|
)
|
|
5,173
|
|
|
4,301
|
|
|
20
|
|
|||||||
Net interest income
|
|
6,066
|
|
|
5,737
|
|
|
5,746
|
|
|
5,791
|
|
|
5,820
|
|
|
6
|
|
|
4
|
|
|
23,340
|
|
|
22,875
|
|
|
2
|
|
|||||||
Provision for credit losses
|
|
1,818
|
|
|
1,383
|
|
|
1,342
|
|
|
1,693
|
|
|
1,638
|
|
|
31
|
|
|
11
|
|
|
6,236
|
|
|
5,856
|
|
|
6
|
|
|||||||
Net interest income after provision for credit losses
|
|
4,248
|
|
|
4,354
|
|
|
4,404
|
|
|
4,098
|
|
|
4,182
|
|
|
(2
|
)
|
|
2
|
|
|
17,104
|
|
|
17,019
|
|
|
—
|
|
|||||||
Non-interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Interchange fees, net
|
|
811
|
|
|
790
|
|
|
820
|
|
|
758
|
|
|
743
|
|
|
3
|
|
|
9
|
|
|
3,179
|
|
|
2,823
|
|
|
13
|
|
|||||||
Service charges and other customer-related fees
|
|
342
|
|
|
283
|
|
|
352
|
|
|
353
|
|
|
352
|
|
|
21
|
|
|
(3
|
)
|
|
1,330
|
|
|
1,585
|
|
|
(16
|
)
|
|||||||
Net securities gains (losses)
|
|
(18
|
)
|
|
5
|
|
|
15
|
|
|
24
|
|
|
(20
|
)
|
|
**
|
|
|
(10
|
)
|
|
26
|
|
|
(209
|
)
|
|
**
|
|
|||||||
Other
|
|
226
|
|
|
144
|
|
|
191
|
|
|
157
|
|
|
118
|
|
|
57
|
|
|
92
|
|
|
718
|
|
|
1,002
|
|
|
(28
|
)
|
|||||||
Total non-interest income
|
|
1,361
|
|
|
1,222
|
|
|
1,378
|
|
|
1,292
|
|
|
1,193
|
|
|
11
|
|
|
14
|
|
|
5,253
|
|
|
5,201
|
|
|
1
|
|
|||||||
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Salaries and associate benefits
|
|
1,652
|
|
|
1,605
|
|
|
1,558
|
|
|
1,573
|
|
|
1,345
|
|
|
3
|
|
|
23
|
|
|
6,388
|
|
|
5,727
|
|
|
12
|
|
|||||||
Occupancy and equipment
|
|
565
|
|
|
519
|
|
|
521
|
|
|
493
|
|
|
610
|
|
|
9
|
|
|
(7
|
)
|
|
2,098
|
|
|
2,118
|
|
|
(1
|
)
|
|||||||
Marketing
|
|
710
|
|
|
501
|
|
|
546
|
|
|
517
|
|
|
831
|
|
|
42
|
|
|
(15
|
)
|
|
2,274
|
|
|
2,174
|
|
|
5
|
|
|||||||
Professional services
|
|
318
|
|
|
314
|
|
|
314
|
|
|
291
|
|
|
426
|
|
|
1
|
|
|
(25
|
)
|
|
1,237
|
|
|
1,145
|
|
|
8
|
|
|||||||
Communications and data processing
|
|
346
|
|
|
312
|
|
|
329
|
|
|
303
|
|
|
326
|
|
|
11
|
|
|
6
|
|
|
1,290
|
|
|
1,260
|
|
|
2
|
|
|||||||
Amortization of intangibles
|
|
28
|
|
|
25
|
|
|
29
|
|
|
30
|
|
|
43
|
|
|
12
|
|
|
(35
|
)
|
|
112
|
|
|
174
|
|
|
(36
|
)
|
|||||||
Other(15)
|
|
542
|
|
|
596
|
|
|
482
|
|
|
464
|
|
|
551
|
|
|
(9
|
)
|
|
(2
|
)
|
|
2,084
|
|
|
2,304
|
|
|
(10
|
)
|
|||||||
Total non-interest expense
|
|
4,161
|
|
|
3,872
|
|
|
3,779
|
|
|
3,671
|
|
|
4,132
|
|
|
7
|
|
|
1
|
|
|
15,483
|
|
|
14,902
|
|
|
4
|
|
|||||||
Income from continuing operations before income taxes
|
|
1,448
|
|
|
1,704
|
|
|
2,003
|
|
|
1,719
|
|
|
1,243
|
|
|
(15
|
)
|
|
16
|
|
|
6,874
|
|
|
7,318
|
|
|
(6
|
)
|
|||||||
Income tax provision (benefit)
|
|
270
|
|
|
375
|
|
|
387
|
|
|
309
|
|
|
(21
|
)
|
|
(28
|
)
|
|
**
|
|
|
1,341
|
|
|
1,293
|
|
|
4
|
|
|||||||
Income from continuing operations, net of tax
|
|
1,178
|
|
|
1,329
|
|
|
1,616
|
|
|
1,410
|
|
|
1,264
|
|
|
(11
|
)
|
|
(7
|
)
|
|
5,533
|
|
|
6,025
|
|
|
(8
|
)
|
|||||||
Income (loss) from discontinued operations, net of tax
|
|
(2
|
)
|
|
4
|
|
|
9
|
|
|
2
|
|
|
(3
|
)
|
|
**
|
|
|
(33
|
)
|
|
13
|
|
|
(10
|
)
|
|
**
|
|
|||||||
Net income
|
|
1,176
|
|
|
1,333
|
|
|
1,625
|
|
|
1,412
|
|
|
1,261
|
|
|
(12
|
)
|
|
(7
|
)
|
|
5,546
|
|
|
6,015
|
|
|
(8
|
)
|
|||||||
Dividends and undistributed earnings allocated to participating securities(2)
|
|
(7
|
)
|
|
(10
|
)
|
|
(12
|
)
|
|
(12
|
)
|
|
(9
|
)
|
|
(30
|
)
|
|
(22
|
)
|
|
(41
|
)
|
|
(40
|
)
|
|
3
|
|
|||||||
Preferred stock dividends
|
|
(97
|
)
|
|
(53
|
)
|
|
(80
|
)
|
|
(52
|
)
|
|
(80
|
)
|
|
83
|
|
|
21
|
|
|
(282
|
)
|
|
(265
|
)
|
|
6
|
|
|||||||
Issuance cost for redeemed preferred stock(3)
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
**
|
|
|
**
|
|
|
(31
|
)
|
|
—
|
|
|
**
|
|
|||||||
Net income available to common stockholders
|
|
$
|
1,041
|
|
|
$
|
1,270
|
|
|
$
|
1,533
|
|
|
$
|
1,348
|
|
|
$
|
1,172
|
|
|
(18
|
)
|
|
(11
|
)
|
|
$
|
5,192
|
|
|
$
|
5,710
|
|
|
(9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2019 Q4 vs.
|
|
Year Ended December 31,
|
|||||||||||||||||||||||
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
2019 vs.
|
|||||||||||||||||
(Dollars in millions, except per share data and as noted)
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q4
|
|
2019
|
|
2018
|
|
2018
|
|||||||||||||||||
Basic earnings per common share:(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income from continuing operations
|
|
$
|
2.26
|
|
|
$
|
2.70
|
|
|
$
|
3.24
|
|
|
$
|
2.87
|
|
|
$
|
2.50
|
|
|
(16
|
)%
|
|
(10
|
)%
|
|
$
|
11.07
|
|
|
$
|
11.92
|
|
|
(7
|
)%
|
Income (loss) from discontinued operations
|
|
—
|
|
|
0.01
|
|
|
0.02
|
|
|
—
|
|
|
(0.01
|
)
|
|
**
|
|
|
**
|
|
|
0.03
|
|
|
(0.02
|
)
|
|
**
|
|
|||||||
Net income per basic common share
|
|
$
|
2.26
|
|
|
$
|
2.71
|
|
|
$
|
3.26
|
|
|
$
|
2.87
|
|
|
$
|
2.49
|
|
|
(17
|
)
|
|
(9
|
)
|
|
$
|
11.10
|
|
|
$
|
11.90
|
|
|
(7
|
)
|
Diluted earnings per common share:(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income from continuing operations
|
|
$
|
2.25
|
|
|
$
|
2.68
|
|
|
$
|
3.22
|
|
|
$
|
2.86
|
|
|
$
|
2.49
|
|
|
(16
|
)
|
|
(10
|
)
|
|
$
|
11.02
|
|
|
$
|
11.84
|
|
|
(7
|
)
|
Income (loss) from discontinued operations
|
|
—
|
|
|
0.01
|
|
|
0.02
|
|
|
—
|
|
|
(0.01
|
)
|
|
**
|
|
|
**
|
|
|
0.03
|
|
|
(0.02
|
)
|
|
**
|
|
|||||||
Net income per diluted common share
|
|
$
|
2.25
|
|
|
$
|
2.69
|
|
|
$
|
3.24
|
|
|
$
|
2.86
|
|
|
$
|
2.48
|
|
|
(16
|
)
|
|
(9
|
)
|
|
$
|
11.05
|
|
|
$
|
11.82
|
|
|
(7
|
)
|
Weighted-average common shares outstanding (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Basic common shares
|
|
460.9
|
|
|
469.5
|
|
|
470.8
|
|
|
469.4
|
|
|
470.0
|
|
|
(2
|
)
|
|
(2
|
)
|
|
467.6
|
|
|
479.9
|
|
|
(3
|
)
|
|||||||
Diluted common shares
|
|
463.4
|
|
|
471.8
|
|
|
473.0
|
|
|
471.6
|
|
|
472.7
|
|
|
(2
|
)
|
|
(2
|
)
|
|
469.9
|
|
|
483.1
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Q4 vs.
|
||||||||||||||
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
(Dollars in millions)
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q4
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and due from banks
|
|
$
|
4,129
|
|
|
$
|
4,452
|
|
|
$
|
5,184
|
|
|
$
|
4,572
|
|
|
$
|
4,768
|
|
|
(7
|
)%
|
|
(13
|
)%
|
Interest-bearing deposits and other short-term investments
|
|
9,278
|
|
|
12,668
|
|
|
9,927
|
|
|
12,897
|
|
|
8,418
|
|
|
(27
|
)
|
|
10
|
|
|||||
Total cash and cash equivalents
|
|
13,407
|
|
|
17,120
|
|
|
15,111
|
|
|
17,469
|
|
|
13,186
|
|
|
(22
|
)
|
|
2
|
|
|||||
Restricted cash for securitization investors
|
|
342
|
|
|
417
|
|
|
710
|
|
|
1,969
|
|
|
303
|
|
|
(18
|
)
|
|
13
|
|
|||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities available for sale
|
|
79,213
|
|
|
46,168
|
|
|
45,658
|
|
|
45,888
|
|
|
46,150
|
|
|
72
|
|
|
72
|
|
|||||
Securities held to maturity
|
|
—
|
|
|
33,894
|
|
|
35,475
|
|
|
36,503
|
|
|
36,771
|
|
|
(100
|
)
|
|
(100
|
)
|
|||||
Total investment securities
|
|
79,213
|
|
|
80,062
|
|
|
81,133
|
|
|
82,391
|
|
|
82,921
|
|
|
(1
|
)
|
|
(4
|
)
|
|||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unsecuritized loans held for investment
|
|
231,992
|
|
|
215,892
|
|
|
211,556
|
|
|
208,591
|
|
|
211,702
|
|
|
7
|
|
|
10
|
|
|||||
Loans held in consolidated trusts
|
|
33,817
|
|
|
33,463
|
|
|
32,904
|
|
|
31,682
|
|
|
34,197
|
|
|
1
|
|
|
(1
|
)
|
|||||
Total loans held for investment
|
|
265,809
|
|
|
249,355
|
|
|
244,460
|
|
|
240,273
|
|
|
245,899
|
|
|
7
|
|
|
8
|
|
|||||
Allowance for loan and lease losses
|
|
(7,208
|
)
|
|
(7,037
|
)
|
|
(7,133
|
)
|
|
(7,313
|
)
|
|
(7,220
|
)
|
|
2
|
|
|
—
|
|
|||||
Net loans held for investment
|
|
258,601
|
|
|
242,318
|
|
|
237,327
|
|
|
232,960
|
|
|
238,679
|
|
|
7
|
|
|
8
|
|
|||||
Loans held for sale
|
|
400
|
|
|
1,245
|
|
|
1,829
|
|
|
905
|
|
|
1,192
|
|
|
(68
|
)
|
|
(66
|
)
|
|||||
Premises and equipment, net
|
|
4,378
|
|
|
4,311
|
|
|
4,243
|
|
|
4,205
|
|
|
4,191
|
|
|
2
|
|
|
4
|
|
|||||
Interest receivable
|
|
1,758
|
|
|
1,627
|
|
|
1,544
|
|
|
1,615
|
|
|
1,614
|
|
|
8
|
|
|
9
|
|
|||||
Goodwill
|
|
14,653
|
|
|
14,624
|
|
|
14,545
|
|
|
14,546
|
|
|
14,544
|
|
|
—
|
|
|
1
|
|
|||||
Other assets
|
|
17,613
|
|
|
17,086
|
|
|
17,177
|
|
|
17,131
|
|
|
15,908
|
|
|
3
|
|
|
11
|
|
|||||
Total assets
|
|
$
|
390,365
|
|
|
$
|
378,810
|
|
|
$
|
373,619
|
|
|
$
|
373,191
|
|
|
$
|
372,538
|
|
|
3
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Q4 vs.
|
||||||||||||||
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
(Dollars in millions)
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q4
|
||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest payable
|
|
$
|
439
|
|
|
$
|
370
|
|
|
$
|
437
|
|
|
$
|
382
|
|
|
$
|
458
|
|
|
19
|
%
|
|
(4
|
)%
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-interest-bearing deposits
|
|
23,488
|
|
|
23,064
|
|
|
23,374
|
|
|
24,908
|
|
|
23,483
|
|
|
2
|
|
|
—
|
|
|||||
Interest-bearing deposits
|
|
239,209
|
|
|
234,084
|
|
|
231,161
|
|
|
230,199
|
|
|
226,281
|
|
|
2
|
|
|
6
|
|
|||||
Total deposits
|
|
262,697
|
|
|
257,148
|
|
|
254,535
|
|
|
255,107
|
|
|
249,764
|
|
|
2
|
|
|
5
|
|
|||||
Securitized debt obligations
|
|
17,808
|
|
|
18,910
|
|
|
16,959
|
|
|
19,273
|
|
|
18,307
|
|
|
(6
|
)
|
|
(3
|
)
|
|||||
Other debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
|
314
|
|
|
464
|
|
|
359
|
|
|
335
|
|
|
352
|
|
|
(32
|
)
|
|
(11
|
)
|
|||||
Senior and subordinated notes
|
|
30,472
|
|
|
30,682
|
|
|
31,822
|
|
|
30,645
|
|
|
30,826
|
|
|
(1
|
)
|
|
(1
|
)
|
|||||
Other borrowings
|
|
7,103
|
|
|
93
|
|
|
93
|
|
|
105
|
|
|
9,420
|
|
|
**
|
|
|
(25
|
)
|
|||||
Total other debt
|
|
37,889
|
|
|
31,239
|
|
|
32,274
|
|
|
31,085
|
|
|
40,598
|
|
|
21
|
|
|
(7
|
)
|
|||||
Other liabilities
|
|
13,521
|
|
|
12,908
|
|
|
13,647
|
|
|
13,863
|
|
|
11,743
|
|
|
5
|
|
|
15
|
|
|||||
Total liabilities
|
|
332,354
|
|
|
320,575
|
|
|
317,852
|
|
|
319,710
|
|
|
320,870
|
|
|
4
|
|
|
4
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Preferred stock
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
—
|
|
|
—
|
|
|||||
Common stock
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|||||
Additional paid-in capital, net
|
|
32,980
|
|
|
33,826
|
|
|
32,262
|
|
|
32,160
|
|
|
32,040
|
|
|
(3
|
)
|
|
3
|
|
|||||
Retained earnings
|
|
40,340
|
|
|
39,476
|
|
|
38,386
|
|
|
37,030
|
|
|
35,875
|
|
|
2
|
|
|
12
|
|
|||||
Accumulated other comprehensive income (loss)
|
|
1,156
|
|
|
453
|
|
|
170
|
|
|
(660
|
)
|
|
(1,263
|
)
|
|
155
|
|
|
**
|
|
|||||
Treasury stock, at cost
|
|
(16,472
|
)
|
|
(15,527
|
)
|
|
(15,058
|
)
|
|
(15,056
|
)
|
|
(14,991
|
)
|
|
6
|
|
|
10
|
|
|||||
Total stockholders’ equity
|
|
58,011
|
|
|
58,235
|
|
|
55,767
|
|
|
53,481
|
|
|
51,668
|
|
|
—
|
|
|
12
|
|
|||||
Total liabilities and stockholders’ equity
|
|
$
|
390,365
|
|
|
$
|
378,810
|
|
|
$
|
373,619
|
|
|
$
|
373,191
|
|
|
$
|
372,538
|
|
|
3
|
|
|
5
|
|
(1)
|
Total net revenue was reduced by $365 million in Q4 2019, $330 million in Q3 2019, $318 million in Q2 2019, $376 million in Q1 2019 and $391 million in Q4 2018 for the estimated uncollectible amount of billed finance charges and fees and related losses.
|
(2)
|
Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total. We also provide adjusted diluted earnings per share, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.
|
(3)
|
On December 2, 2019, we redeemed all outstanding shares of our fixed rate 6.25% non-cumulative perpetual preferred stock Series C and fixed rate 6.70% non-cumulative perpetual preferred stock Series D. The redemption reduced our net income available to common shareholders by $31 million in Q4 2019.
|
(4)
|
Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by common shares outstanding. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.
|
(5)
|
Total net revenue margin is calculated based on total net revenue for the period divided by average interest-earning assets for the period.
|
(6)
|
Net interest margin is calculated based on annualized net interest income for the period divided by average interest-earning assets for the period.
|
(7)
|
Return on average tangible assets is a non-GAAP measure calculated based on annualized income from continuing operations, net of tax, for the period divided by average tangible assets for the period. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.
|
(8)
|
Return on average common equity is calculated based on annualized (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average common equity for the period. Our calculation of return on average common equity may not be comparable to similarly-titled measures reported by other companies.
|
(9)
|
Return on average tangible common equity (“ROTCE”) is a non-GAAP measure calculated based on annualized (i) income from continuing operations, net of tax; (ii) less dividends and undistributed earnings allocated to participating securities; (iii) less preferred stock dividends, for the period, divided by average tangible common equity for the period. Our calculation of ROTCE may not be comparable to similarly-titled measures reported by other companies. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.
|
(10)
|
Efficiency ratio is calculated based on total non-interest expense for the period divided by total net revenue for the period. We also provide an adjusted efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.
|
(11)
|
Operating efficiency ratio is calculated based on operating expense for the period divided by total net revenue for the period. We also provide an adjusted operating efficiency ratio, which is a non-GAAP measure. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on our non-GAAP measures.
|
(12)
|
Net charge-off rate is calculated based on annualized net charge-offs for the period divided by average loans held for investment for the period.
|
(13)
|
Capital ratios as of the end of Q4 2019 are preliminary and therefore subject to change. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for information on the calculation of each of these ratios.
|
(14)
|
TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets. See “Table 15: Calculation of Regulatory Capital Measures and Reconciliation of Non-GAAP Measures” for additional information on non-GAAP measures.
|
(15)
|
Includes $16 million of net Cybersecurity Incident expenses in Q4 2019, consisting of $23 million of expenses and $7 million of insurance recoveries; and $22 million of net Cybersecurity Incident expenses in Q3 2019, consisting of $49 million of expenses and $27 million of insurance recoveries.
|
**
|
Not meaningful.
|
|
|
2019 Q4
|
|
2019 Q3
|
|
2018 Q4
|
|||||||||||||||||||||||||||
|
|
Average Balance
|
|
Interest
Income/ Expense |
|
Yield/Rate
|
|
Average Balance
|
|
Interest
Income/ Expense |
|
Yield/Rate
|
|
Average Balance
|
|
Interest
Income/ Expense |
|
Yield/Rate
|
|||||||||||||||
(Dollars in millions, except as noted)
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans, including loans held for sale
|
|
$
|
259,855
|
|
|
$
|
6,682
|
|
|
10.29
|
%
|
|
$
|
247,419
|
|
|
$
|
6,429
|
|
|
10.39
|
%
|
|
$
|
242,534
|
|
|
$
|
6,358
|
|
|
10.49
|
%
|
Investment securities
|
|
79,104
|
|
|
544
|
|
|
2.75
|
|
|
80,762
|
|
|
583
|
|
|
2.88
|
|
|
83,391
|
|
|
627
|
|
|
3.01
|
|
||||||
Cash equivalents and other
|
|
10,191
|
|
|
44
|
|
|
1.70
|
|
|
12,768
|
|
|
63
|
|
|
2.00
|
|
|
8,789
|
|
|
63
|
|
|
2.87
|
|
||||||
Total interest-earning assets
|
|
$
|
349,150
|
|
|
$
|
7,270
|
|
|
8.33
|
|
|
$
|
340,949
|
|
|
$
|
7,075
|
|
|
8.30
|
|
|
$
|
334,714
|
|
|
$
|
7,048
|
|
|
8.42
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits
|
|
$
|
236,250
|
|
|
$
|
832
|
|
|
1.41
|
|
|
$
|
232,063
|
|
|
$
|
901
|
|
|
1.55
|
|
|
$
|
222,827
|
|
|
$
|
756
|
|
|
1.36
|
|
Securitized debt obligations
|
|
18,339
|
|
|
118
|
|
|
2.58
|
|
|
16,750
|
|
|
123
|
|
|
2.94
|
|
|
18,312
|
|
|
138
|
|
|
2.99
|
|
||||||
Senior and subordinated notes
|
|
30,597
|
|
|
236
|
|
|
3.08
|
|
|
31,220
|
|
|
299
|
|
|
3.84
|
|
|
30,831
|
|
|
297
|
|
|
3.86
|
|
||||||
Other borrowings and liabilities
|
|
3,789
|
|
|
18
|
|
|
1.95
|
|
|
2,698
|
|
|
15
|
|
|
2.14
|
|
|
6,123
|
|
|
37
|
|
|
2.43
|
|
||||||
Total interest-bearing liabilities
|
|
$
|
288,975
|
|
|
$
|
1,204
|
|
|
1.67
|
|
|
$
|
282,731
|
|
|
$
|
1,338
|
|
|
1.89
|
|
|
$
|
278,093
|
|
|
$
|
1,228
|
|
|
1.77
|
|
Net interest income/spread
|
|
|
|
$
|
6,066
|
|
|
6.66
|
|
|
|
|
$
|
5,737
|
|
|
6.41
|
|
|
|
|
$
|
5,820
|
|
|
6.65
|
|
||||||
Impact of non-interest-bearing funding
|
|
|
|
|
|
0.29
|
|
|
|
|
|
|
0.32
|
|
|
|
|
|
|
0.31
|
|
||||||||||||
Net interest margin
|
|
|
|
|
|
6.95
|
%
|
|
|
|
|
|
6.73
|
%
|
|
|
|
|
|
6.96
|
%
|
|
|
Year Ended December 31,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
|
|
Average Balance
|
|
Interest
Income/ Expense |
|
Yield/Rate
|
|
Average Balance
|
|
Interest
Income/ Expense |
|
Yield/Rate
|
||||||||||
(Dollars in millions, except as noted)
|
|
|
|
|
|
|
||||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans, including loans held for sale
|
|
$
|
248,552
|
|
|
$
|
25,862
|
|
|
10.41
|
%
|
|
$
|
243,371
|
|
|
$
|
24,728
|
|
|
10.16
|
%
|
Investment securities
|
|
81,467
|
|
|
2,411
|
|
|
2.96
|
|
|
79,224
|
|
|
2,211
|
|
|
2.79
|
|
||||
Cash equivalents and other
|
|
11,491
|
|
|
240
|
|
|
2.08
|
|
|
10,143
|
|
|
237
|
|
|
2.33
|
|
||||
Total interest-earning assets
|
|
$
|
341,510
|
|
|
$
|
28,513
|
|
|
8.35
|
|
|
$
|
332,738
|
|
|
$
|
27,176
|
|
|
8.17
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits
|
|
$
|
231,609
|
|
|
$
|
3,420
|
|
|
1.48
|
|
|
$
|
221,760
|
|
|
$
|
2,598
|
|
|
1.17
|
|
Securitized debt obligations
|
|
18,020
|
|
|
523
|
|
|
2.90
|
|
|
19,014
|
|
|
496
|
|
|
2.61
|
|
||||
Senior and subordinated notes
|
|
30,821
|
|
|
1,159
|
|
|
3.76
|
|
|
31,295
|
|
|
1,125
|
|
|
3.60
|
|
||||
Other borrowings and liabilities
|
|
3,369
|
|
|
71
|
|
|
2.12
|
|
|
4,028
|
|
|
82
|
|
|
2.04
|
|
||||
Total interest-bearing liabilities
|
|
$
|
283,819
|
|
|
$
|
5,173
|
|
|
1.82
|
|
|
$
|
276,097
|
|
|
$
|
4,301
|
|
|
1.56
|
|
Net interest income/spread
|
|
|
|
$
|
23,340
|
|
|
6.53
|
|
|
|
|
$
|
22,875
|
|
|
6.61
|
|
||||
Impact of non-interest-bearing funding
|
|
|
|
|
|
0.30
|
|
|
|
|
|
|
0.26
|
|
||||||||
Net interest margin
|
|
|
|
|
|
6.83
|
%
|
|
|
|
|
|
6.87
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Q4 vs.
|
|
Year Ended December 31,
|
|||||||||||||||||||||||
(Dollars in millions, except as noted)
|
|
2019
Q4 |
|
2019
Q3 |
|
2019
Q2 |
|
2019
Q1 |
|
2018
Q4 |
|
2019
Q3 |
|
2018
Q4 |
|
2019
|
|
2018
|
|
2019 vs.
2018 |
|||||||||||||||||
Loans Held for Investment (Period-End)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Credit card:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Domestic credit card
|
|
$
|
118,606
|
|
|
$
|
104,664
|
|
|
$
|
102,959
|
|
|
$
|
101,052
|
|
|
$
|
107,350
|
|
|
13
|
%
|
|
10
|
%
|
|
$
|
118,606
|
|
|
$
|
107,350
|
|
|
10
|
%
|
International card businesses
|
|
9,630
|
|
|
9,017
|
|
|
9,182
|
|
|
8,784
|
|
|
9,011
|
|
|
7
|
|
|
7
|
|
|
9,630
|
|
|
9,011
|
|
|
7
|
|
|||||||
Total credit card
|
|
128,236
|
|
|
113,681
|
|
|
112,141
|
|
|
109,836
|
|
|
116,361
|
|
|
13
|
|
|
10
|
|
|
128,236
|
|
|
116,361
|
|
|
10
|
|
|||||||
Consumer banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Auto
|
|
60,362
|
|
|
59,278
|
|
|
57,556
|
|
|
56,444
|
|
|
56,341
|
|
|
2
|
|
|
7
|
|
|
60,362
|
|
|
56,341
|
|
|
7
|
|
|||||||
Retail banking
|
|
2,703
|
|
|
2,737
|
|
|
2,771
|
|
|
2,804
|
|
|
2,864
|
|
|
(1
|
)
|
|
(6
|
)
|
|
2,703
|
|
|
2,864
|
|
|
(6
|
)
|
|||||||
Total consumer banking
|
|
63,065
|
|
|
62,015
|
|
|
60,327
|
|
|
59,248
|
|
|
59,205
|
|
|
2
|
|
|
7
|
|
|
63,065
|
|
|
59,205
|
|
|
7
|
|
|||||||
Commercial banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial and multifamily real estate
|
|
30,245
|
|
|
30,009
|
|
|
29,861
|
|
|
28,984
|
|
|
28,899
|
|
|
1
|
|
|
5
|
|
|
30,245
|
|
|
28,899
|
|
|
5
|
|
|||||||
Commercial and industrial
|
|
44,263
|
|
|
43,650
|
|
|
42,125
|
|
|
42,197
|
|
|
41,091
|
|
|
1
|
|
|
8
|
|
|
44,263
|
|
|
41,091
|
|
|
8
|
|
|||||||
Total commercial lending
|
|
74,508
|
|
|
73,659
|
|
|
71,986
|
|
|
71,181
|
|
|
69,990
|
|
|
1
|
|
|
6
|
|
|
74,508
|
|
|
69,990
|
|
|
6
|
|
|||||||
Small-ticket commercial real estate
|
|
—
|
|
|
—
|
|
|
6
|
|
|
8
|
|
|
343
|
|
|
**
|
|
|
**
|
|
|
—
|
|
|
343
|
|
|
**
|
|
|||||||
Total commercial banking
|
|
74,508
|
|
|
73,659
|
|
|
71,992
|
|
|
71,189
|
|
|
70,333
|
|
|
1
|
|
|
6
|
|
|
74,508
|
|
|
70,333
|
|
|
6
|
|
|||||||
Total loans held for investment
|
|
$
|
265,809
|
|
|
$
|
249,355
|
|
|
$
|
244,460
|
|
|
$
|
240,273
|
|
|
$
|
245,899
|
|
|
7
|
|
|
8
|
|
|
$
|
265,809
|
|
|
$
|
245,899
|
|
|
8
|
|
Loans Held for Investment (Average)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Credit card:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Domestic credit card
|
|
$
|
112,965
|
|
|
$
|
103,426
|
|
|
$
|
101,930
|
|
|
$
|
102,667
|
|
|
$
|
103,391
|
|
|
9
|
%
|
|
9
|
%
|
|
$
|
105,270
|
|
|
$
|
100,832
|
|
|
4
|
%
|
International card businesses
|
|
9,120
|
|
|
8,945
|
|
|
8,868
|
|
|
8,789
|
|
|
8,958
|
|
|
2
|
|
|
2
|
|
|
8,932
|
|
|
8,988
|
|
|
(1
|
)
|
|||||||
Total credit card
|
|
122,085
|
|
|
112,371
|
|
|
110,798
|
|
|
111,456
|
|
|
112,349
|
|
|
9
|
|
|
9
|
|
|
114,202
|
|
|
109,820
|
|
|
4
|
|
|||||||
Consumer banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Auto
|
|
59,884
|
|
|
58,517
|
|
|
57,070
|
|
|
56,234
|
|
|
56,469
|
|
|
2
|
|
|
6
|
|
|
57,938
|
|
|
55,610
|
|
|
4
|
|
|||||||
Home loan(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
**
|
|
|
**
|
|
|
—
|
|
|
6,266
|
|
|
**
|
|
|||||||
Retail banking
|
|
2,712
|
|
|
2,752
|
|
|
2,788
|
|
|
2,831
|
|
|
2,873
|
|
|
(1
|
)
|
|
(6
|
)
|
|
2,770
|
|
|
3,075
|
|
|
(10
|
)
|
|||||||
Total consumer banking
|
|
62,596
|
|
|
61,269
|
|
|
59,858
|
|
|
59,065
|
|
|
59,342
|
|
|
2
|
|
|
5
|
|
|
60,708
|
|
|
64,951
|
|
|
(7
|
)
|
|||||||
Commercial banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial and multifamily real estate
|
|
30,173
|
|
|
29,698
|
|
|
29,514
|
|
|
29,034
|
|
|
28,855
|
|
|
2
|
|
|
5
|
|
|
29,608
|
|
|
27,771
|
|
|
7
|
|
|||||||
Commercial and industrial
|
|
44,016
|
|
|
42,807
|
|
|
42,476
|
|
|
42,132
|
|
|
40,476
|
|
|
3
|
|
|
9
|
|
|
42,863
|
|
|
39,188
|
|
|
9
|
|
|||||||
Total commercial lending
|
|
74,189
|
|
|
72,505
|
|
|
71,990
|
|
|
71,166
|
|
|
69,331
|
|
|
2
|
|
|
7
|
|
|
72,471
|
|
|
66,959
|
|
|
8
|
|
|||||||
Small-ticket commercial real estate
|
|
—
|
|
|
2
|
|
|
7
|
|
|
272
|
|
|
349
|
|
|
**
|
|
|
**
|
|
|
69
|
|
|
371
|
|
|
(81
|
)
|
|||||||
Total commercial banking
|
|
74,189
|
|
|
72,507
|
|
|
71,997
|
|
|
71,438
|
|
|
69,680
|
|
|
2
|
|
|
6
|
|
|
72,540
|
|
|
67,330
|
|
|
8
|
|
|||||||
Other loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
**
|
|
|
**
|
|
|
—
|
|
|
17
|
|
|
**
|
|
|||||||
Total average loans held for investment
|
|
$
|
258,870
|
|
|
$
|
246,147
|
|
|
$
|
242,653
|
|
|
$
|
241,959
|
|
|
$
|
241,371
|
|
|
5
|
|
|
7
|
|
|
$
|
247,450
|
|
|
$
|
242,118
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Q4 vs.
|
|
Year Ended December 31,
|
||||||||||||||||
|
|
2019
Q4 |
|
2019
Q3 |
|
2019
Q2 |
|
2019
Q1 |
|
2018
Q4 |
|
2019
Q3 |
|
2018
Q4 |
|
2019
|
|
2018
|
|
2019 vs.
2018 |
||||||||||
Net Charge-Off (Recovery) Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit card:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Domestic credit card(2)
|
|
4.32
|
%
|
|
4.12
|
%
|
|
4.86
|
%
|
|
5.04
|
%
|
|
4.64
|
%
|
|
20
|
bps
|
|
(32
|
)bps
|
|
4.58
|
%
|
|
4.74
|
%
|
|
(16
|
)bps
|
International card businesses
|
|
4.22
|
|
|
3.78
|
|
|
3.63
|
|
|
3.20
|
|
|
4.22
|
|
|
44
|
|
|
—
|
|
|
3.71
|
|
|
3.19
|
|
|
52
|
|
Total credit card
|
|
4.31
|
|
|
4.09
|
|
|
4.76
|
|
|
4.90
|
|
|
4.61
|
|
|
22
|
|
|
(30
|
)
|
|
4.51
|
|
|
4.62
|
|
|
(11
|
)
|
Consumer banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Auto
|
|
1.90
|
|
|
1.60
|
|
|
1.09
|
|
|
1.44
|
|
|
1.98
|
|
|
30
|
|
|
(8
|
)
|
|
1.51
|
|
|
1.64
|
|
|
(13
|
)
|
Retail banking
|
|
2.77
|
|
|
2.55
|
|
|
2.42
|
|
|
2.56
|
|
|
2.56
|
|
|
22
|
|
|
21
|
|
|
2.57
|
|
|
2.26
|
|
|
31
|
|
Total consumer banking
|
|
1.93
|
|
|
1.64
|
|
|
1.15
|
|
|
1.49
|
|
|
2.01
|
|
|
29
|
|
|
(8
|
)
|
|
1.56
|
|
|
1.51
|
|
|
5
|
|
Commercial banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and multifamily real estate
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
(2
|
)
|
|
1
|
|
|
—
|
|
|
0.01
|
|
|
(1
|
)
|
Commercial and industrial
|
|
0.60
|
|
|
0.55
|
|
|
0.15
|
|
|
0.13
|
|
|
0.17
|
|
|
5
|
|
|
43
|
|
|
0.36
|
|
|
0.14
|
|
|
22
|
|
Total commercial lending
|
|
0.36
|
|
|
0.33
|
|
|
0.09
|
|
|
0.08
|
|
|
0.10
|
|
|
3
|
|
|
26
|
|
|
0.22
|
|
|
0.08
|
|
|
14
|
|
Total commercial banking
|
|
0.35
|
|
|
0.33
|
|
|
0.09
|
|
|
0.08
|
|
|
0.10
|
|
|
2
|
|
|
25
|
|
|
0.22
|
|
|
0.08
|
|
|
14
|
|
Total net charge-offs
|
|
2.60
|
|
|
2.38
|
|
|
2.48
|
|
|
2.64
|
|
|
2.67
|
|
|
22
|
|
|
(7
|
)
|
|
2.53
|
|
|
2.52
|
|
|
1
|
|
30+ Day Performing Delinquency Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit card:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Domestic credit card(2)
|
|
3.93
|
%
|
|
3.71
|
%
|
|
3.40
|
%
|
|
3.72
|
%
|
|
4.04
|
%
|
|
22
|
bps
|
|
(11
|
)bps
|
|
3.93
|
%
|
|
4.04
|
%
|
|
(11
|
)bps
|
International card businesses
|
|
3.47
|
|
|
3.52
|
|
|
3.40
|
|
|
3.61
|
|
|
3.52
|
|
|
(5
|
)
|
|
(5
|
)
|
|
3.47
|
|
|
3.52
|
|
|
(5
|
)
|
Total credit card
|
|
3.89
|
|
|
3.69
|
|
|
3.40
|
|
|
3.71
|
|
|
4.00
|
|
|
20
|
|
|
(11
|
)
|
|
3.89
|
|
|
4.00
|
|
|
(11
|
)
|
Consumer banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Auto
|
|
6.88
|
|
|
6.47
|
|
|
6.10
|
|
|
5.78
|
|
|
6.95
|
|
|
41
|
|
|
(7
|
)
|
|
6.88
|
|
|
6.95
|
|
|
(7
|
)
|
Retail banking
|
|
1.02
|
|
|
1.01
|
|
|
0.93
|
|
|
0.84
|
|
|
1.01
|
|
|
1
|
|
|
1
|
|
|
1.02
|
|
|
1.01
|
|
|
1
|
|
Total consumer banking
|
|
6.63
|
|
|
6.23
|
|
|
5.87
|
|
|
5.55
|
|
|
6.67
|
|
|
40
|
|
|
(4
|
)
|
|
6.63
|
|
|
6.67
|
|
|
(4
|
)
|
Nonperforming Loans and Nonperforming Assets Rates(3)(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit card:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
International card businesses
|
|
0.26
|
%
|
|
0.25
|
%
|
|
0.25
|
%
|
|
0.26
|
%
|
|
0.25
|
%
|
|
1
|
bps
|
|
1
|
bps
|
|
0.26
|
%
|
|
0.25
|
%
|
|
1
|
bps
|
Total credit card
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|
0.02
|
|
|
—
|
|
Consumer banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Auto
|
|
0.81
|
|
|
0.73
|
|
|
0.64
|
|
|
0.57
|
|
|
0.80
|
|
|
8
|
|
|
1
|
|
|
0.81
|
|
|
0.80
|
|
|
1
|
|
Retail banking
|
|
0.87
|
|
|
0.91
|
|
|
1.02
|
|
|
1.10
|
|
|
1.04
|
|
|
(4
|
)
|
|
(17
|
)
|
|
0.87
|
|
|
1.04
|
|
|
(17
|
)
|
Total consumer banking
|
|
0.81
|
|
|
0.74
|
|
|
0.66
|
|
|
0.59
|
|
|
0.81
|
|
|
7
|
|
|
—
|
|
|
0.81
|
|
|
0.81
|
|
|
—
|
|
Commercial banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and multifamily real estate
|
|
0.12
|
|
|
0.12
|
|
|
0.14
|
|
|
0.24
|
|
|
0.29
|
|
|
—
|
|
|
(17
|
)
|
|
0.12
|
|
|
0.29
|
|
|
(17
|
)
|
Commercial and industrial
|
|
0.93
|
|
|
0.95
|
|
|
0.74
|
|
|
0.71
|
|
|
0.54
|
|
|
(2
|
)
|
|
39
|
|
|
0.93
|
|
|
0.54
|
|
|
39
|
|
Total commercial lending
|
|
0.60
|
|
|
0.61
|
|
|
0.49
|
|
|
0.52
|
|
|
0.44
|
|
|
(1
|
)
|
|
16
|
|
|
0.60
|
|
|
0.44
|
|
|
16
|
|
Total commercial banking
|
|
0.60
|
|
|
0.61
|
|
|
0.50
|
|
|
0.53
|
|
|
0.44
|
|
|
(1
|
)
|
|
16
|
|
|
0.60
|
|
|
0.44
|
|
|
16
|
|
Total nonperforming loans
|
|
0.37
|
|
|
0.37
|
|
|
0.32
|
|
|
0.31
|
|
|
0.33
|
|
|
—
|
|
|
4
|
|
|
0.37
|
|
|
0.33
|
|
|
4
|
|
Total nonperforming assets
|
|
0.39
|
|
|
0.40
|
|
|
0.34
|
|
|
0.33
|
|
|
0.35
|
|
|
(1
|
)
|
|
4
|
|
|
0.39
|
|
|
0.35
|
|
|
4
|
|
|
|
Three Months Ended December 31, 2019
|
||||||||||||||||||||||||||||||
|
|
Credit Card
|
|
Consumer Banking
|
|
|
|
|
||||||||||||||||||||||||
(Dollars in millions)
|
|
Domestic Card
|
|
International Card Businesses
|
|
Total
Credit Card |
|
Auto
|
|
Retail Banking
|
|
Total Consumer Banking
|
|
Commercial Banking
|
|
Total
|
||||||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance as of September 30, 2019
|
|
$
|
4,870
|
|
|
$
|
400
|
|
|
$
|
5,270
|
|
|
$
|
952
|
|
|
$
|
55
|
|
|
$
|
1,007
|
|
|
$
|
760
|
|
|
$
|
7,037
|
|
Charge-offs
|
|
(1,554
|
)
|
|
(133
|
)
|
|
(1,687
|
)
|
|
(511
|
)
|
|
(23
|
)
|
|
(534
|
)
|
|
(72
|
)
|
|
(2,293
|
)
|
||||||||
Recoveries
|
|
335
|
|
|
38
|
|
|
373
|
|
|
227
|
|
|
4
|
|
|
231
|
|
|
6
|
|
|
610
|
|
||||||||
Net charge-offs
|
|
(1,219
|
)
|
|
(95
|
)
|
|
(1,314
|
)
|
|
(284
|
)
|
|
(19
|
)
|
|
(303
|
)
|
|
(66
|
)
|
|
(1,683
|
)
|
||||||||
Provision for loan and lease losses
|
|
1,346
|
|
|
75
|
|
|
1,421
|
|
|
316
|
|
|
18
|
|
|
334
|
|
|
81
|
|
|
1,836
|
|
||||||||
Allowance build (release) for loan and lease losses
|
|
127
|
|
|
(20
|
)
|
|
107
|
|
|
32
|
|
|
(1
|
)
|
|
31
|
|
|
15
|
|
|
153
|
|
||||||||
Other changes(5)
|
|
—
|
|
|
18
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
||||||||
Balance as of December 31, 2019
|
|
4,997
|
|
|
398
|
|
|
5,395
|
|
|
984
|
|
|
54
|
|
|
1,038
|
|
|
775
|
|
|
7,208
|
|
||||||||
Reserve for unfunded lending commitments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance as of September 30, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
149
|
|
|
153
|
|
||||||||
Provision (benefit) for losses on unfunded lending commitments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
(19
|
)
|
|
(18
|
)
|
||||||||
Balance as of December 31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|
130
|
|
|
135
|
|
||||||||
Combined allowance and reserve as of December 31, 2019
|
|
$
|
4,997
|
|
|
$
|
398
|
|
|
$
|
5,395
|
|
|
$
|
984
|
|
|
$
|
59
|
|
|
$
|
1,043
|
|
|
$
|
905
|
|
|
$
|
7,343
|
|
|
|
Year Ended December 31, 2019
|
||||||||||||||||||||||||||||||
|
|
Credit Card
|
|
Consumer Banking
|
|
|
|
|
||||||||||||||||||||||||
(Dollars in millions)
|
|
Domestic Card
|
|
International Card Businesses
|
|
Total
Credit Card |
|
Auto
|
|
Retail Banking
|
|
Total Consumer Banking
|
|
Commercial Banking
|
|
Total
|
||||||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance as of December 31, 2018
|
|
$
|
5,144
|
|
|
$
|
391
|
|
|
$
|
5,535
|
|
|
$
|
990
|
|
|
$
|
58
|
|
|
$
|
1,048
|
|
|
$
|
637
|
|
|
$
|
7,220
|
|
Charge-offs
|
|
(6,189
|
)
|
|
(522
|
)
|
|
(6,711
|
)
|
|
(1,829
|
)
|
|
(88
|
)
|
|
(1,917
|
)
|
|
(181
|
)
|
|
(8,809
|
)
|
||||||||
Recoveries
|
|
1,371
|
|
|
191
|
|
|
1,562
|
|
|
953
|
|
|
17
|
|
|
970
|
|
|
25
|
|
|
2,557
|
|
||||||||
Net charge-offs
|
|
(4,818
|
)
|
|
(331
|
)
|
|
(5,149
|
)
|
|
(876
|
)
|
|
(71
|
)
|
|
(947
|
)
|
|
(156
|
)
|
|
(6,252
|
)
|
||||||||
Provision for loan and lease losses
|
|
4,671
|
|
|
321
|
|
|
4,992
|
|
|
870
|
|
|
67
|
|
|
937
|
|
|
294
|
|
|
6,223
|
|
||||||||
Allowance build (release) for loan and lease losses
|
|
(147
|
)
|
|
(10
|
)
|
|
(157
|
)
|
|
(6
|
)
|
|
(4
|
)
|
|
(10
|
)
|
|
138
|
|
|
(29
|
)
|
||||||||
Other changes(5)
|
|
—
|
|
|
17
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
||||||||
Balance as of December 31, 2019
|
|
4,997
|
|
|
398
|
|
|
5,395
|
|
|
984
|
|
|
54
|
|
|
1,038
|
|
|
775
|
|
|
7,208
|
|
||||||||
Reserve for unfunded lending commitments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance as of December 31, 2018
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
118
|
|
|
122
|
|
||||||||
Provision for losses on unfunded lending commitments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
12
|
|
|
13
|
|
||||||||
Balance as of December 31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|
130
|
|
|
135
|
|
||||||||
Combined allowance and reserve as of December 31, 2019
|
|
$
|
4,997
|
|
|
$
|
398
|
|
|
$
|
5,395
|
|
|
$
|
984
|
|
|
$
|
59
|
|
|
$
|
1,043
|
|
|
$
|
905
|
|
|
$
|
7,343
|
|
|
|
Three Months Ended December 31, 2019
|
|
Year Ended December 31, 2019
|
||||||||||||||||||||||||||||||||||||
(Dollars in millions)
|
|
Credit Card
|
|
Consumer Banking
|
|
Commercial Banking(6)
|
|
Other(6)
|
|
Total
|
|
Credit Card
|
|
Consumer Banking
|
|
Commercial Banking(6)
|
|
Other(6)
|
|
Total
|
||||||||||||||||||||
Net interest income
|
|
$
|
3,794
|
|
|
$
|
1,662
|
|
|
$
|
494
|
|
|
$
|
116
|
|
|
$
|
6,066
|
|
|
$
|
14,461
|
|
|
$
|
6,732
|
|
|
$
|
1,983
|
|
|
$
|
164
|
|
|
$
|
23,340
|
|
Non-interest income (loss)
|
|
1,030
|
|
|
152
|
|
|
223
|
|
|
(44
|
)
|
|
1,361
|
|
|
3,888
|
|
|
643
|
|
|
831
|
|
|
(109
|
)
|
|
5,253
|
|
||||||||||
Total net revenue
|
|
4,824
|
|
|
1,814
|
|
|
717
|
|
|
72
|
|
|
7,427
|
|
|
18,349
|
|
|
7,375
|
|
|
2,814
|
|
|
55
|
|
|
28,593
|
|
||||||||||
Provision for credit losses
|
|
1,421
|
|
|
335
|
|
|
62
|
|
|
—
|
|
|
1,818
|
|
|
4,992
|
|
|
938
|
|
|
306
|
|
|
—
|
|
|
6,236
|
|
||||||||||
Non-interest expense
|
|
2,487
|
|
|
1,110
|
|
|
441
|
|
|
123
|
|
|
4,161
|
|
|
9,271
|
|
|
4,091
|
|
|
1,699
|
|
|
422
|
|
|
15,483
|
|
||||||||||
Income (loss) from continuing operations before income taxes
|
|
916
|
|
|
369
|
|
|
214
|
|
|
(51
|
)
|
|
1,448
|
|
|
4,086
|
|
|
2,346
|
|
|
809
|
|
|
(367
|
)
|
|
6,874
|
|
||||||||||
Income tax provision (benefit)
|
|
212
|
|
|
86
|
|
|
50
|
|
|
(78
|
)
|
|
270
|
|
|
959
|
|
|
547
|
|
|
188
|
|
|
(353
|
)
|
|
1,341
|
|
||||||||||
Income (loss) from continuing operations, net of tax
|
|
$
|
704
|
|
|
$
|
283
|
|
|
$
|
164
|
|
|
$
|
27
|
|
|
$
|
1,178
|
|
|
$
|
3,127
|
|
|
$
|
1,799
|
|
|
$
|
621
|
|
|
$
|
(14
|
)
|
|
$
|
5,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
Three Months Ended September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
(Dollars in millions)
|
|
Credit Card
|
|
Consumer Banking
|
|
Commercial Banking(6)
|
|
Other(6)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net interest income
|
|
$
|
3,546
|
|
|
$
|
1,682
|
|
|
$
|
486
|
|
|
$
|
23
|
|
|
$
|
5,737
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest income (loss)
|
|
870
|
|
|
165
|
|
|
221
|
|
|
(34
|
)
|
|
1,222
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total net revenue (loss)
|
|
4,416
|
|
|
1,847
|
|
|
707
|
|
|
(11
|
)
|
|
6,959
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Provision for credit losses
|
|
1,087
|
|
|
203
|
|
|
93
|
|
|
—
|
|
|
1,383
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Non-interest expense
|
|
2,360
|
|
|
985
|
|
|
414
|
|
|
113
|
|
|
3,872
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income (loss) from continuing operations before income taxes
|
|
969
|
|
|
659
|
|
|
200
|
|
|
(124
|
)
|
|
1,704
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income tax provision (benefit)
|
|
235
|
|
|
154
|
|
|
46
|
|
|
(60
|
)
|
|
375
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income (loss) from continuing operations, net of tax
|
|
$
|
734
|
|
|
$
|
505
|
|
|
$
|
154
|
|
|
$
|
(64
|
)
|
|
$
|
1,329
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
Three Months Ended December 31, 2018
|
|
Year Ended December 31, 2018
|
||||||||||||||||||||||||||||||||||||
(Dollars in millions)
|
|
Credit Card
|
|
Consumer Banking
|
|
Commercial Banking(6)(7)
|
|
Other(6)(7)
|
|
Total
|
|
Credit Card
|
|
Consumer Banking
|
|
Commercial Banking(6)(7)
|
|
Other(6)(7)
|
|
Total
|
||||||||||||||||||||
Net interest income
|
|
$
|
3,617
|
|
|
$
|
1,689
|
|
|
$
|
508
|
|
|
$
|
6
|
|
|
$
|
5,820
|
|
|
$
|
14,167
|
|
|
$
|
6,549
|
|
|
$
|
2,044
|
|
|
$
|
115
|
|
|
$
|
22,875
|
|
Non-interest income (loss)
|
|
886
|
|
|
159
|
|
|
159
|
|
|
(11
|
)
|
|
1,193
|
|
|
3,520
|
|
|
663
|
|
|
744
|
|
|
274
|
|
|
5,201
|
|
||||||||||
Total net revenue (loss)
|
|
4,503
|
|
|
1,848
|
|
|
667
|
|
|
(5
|
)
|
|
7,013
|
|
|
17,687
|
|
|
7,212
|
|
|
2,788
|
|
|
389
|
|
|
28,076
|
|
||||||||||
Provision (benefit) for credit losses
|
|
1,326
|
|
|
303
|
|
|
9
|
|
|
—
|
|
|
1,638
|
|
|
4,984
|
|
|
838
|
|
|
83
|
|
|
(49
|
)
|
|
5,856
|
|
||||||||||
Non-interest expense
|
|
2,496
|
|
|
1,085
|
|
|
434
|
|
|
117
|
|
|
4,132
|
|
|
8,542
|
|
|
4,027
|
|
|
1,654
|
|
|
679
|
|
|
14,902
|
|
||||||||||
Income (loss) from continuing operations before income taxes
|
|
681
|
|
|
460
|
|
|
224
|
|
|
(122
|
)
|
|
1,243
|
|
|
4,161
|
|
|
2,347
|
|
|
1,051
|
|
|
(241
|
)
|
|
7,318
|
|
||||||||||
Income tax provision (benefit)
|
|
160
|
|
|
107
|
|
|
52
|
|
|
(340
|
)
|
|
(21
|
)
|
|
970
|
|
|
547
|
|
|
245
|
|
|
(469
|
)
|
|
1,293
|
|
||||||||||
Income from continuing operations, net of tax
|
|
$
|
521
|
|
|
$
|
353
|
|
|
$
|
172
|
|
|
$
|
218
|
|
|
$
|
1,264
|
|
|
$
|
3,191
|
|
|
$
|
1,800
|
|
|
$
|
806
|
|
|
$
|
228
|
|
|
$
|
6,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Q4 vs.
|
|
Year Ended December 31,
|
|||||||||||||||||||||||
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
2019 vs.
|
|||||||||||||||||
(Dollars in millions, except as noted)
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q4
|
|
2019
|
|
2018
|
|
2018
|
|||||||||||||||||
Credit Card
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net interest income
|
|
$
|
3,794
|
|
|
$
|
3,546
|
|
|
$
|
3,531
|
|
|
$
|
3,590
|
|
|
$
|
3,617
|
|
|
7
|
%
|
|
5
|
%
|
|
$
|
14,461
|
|
|
$
|
14,167
|
|
|
2
|
%
|
Non-interest income
|
|
1,030
|
|
|
870
|
|
|
1,038
|
|
|
950
|
|
|
886
|
|
|
18
|
|
|
16
|
|
|
3,888
|
|
|
3,520
|
|
|
10
|
|
|||||||
Total net revenue
|
|
4,824
|
|
|
4,416
|
|
|
4,569
|
|
|
4,540
|
|
|
4,503
|
|
|
9
|
|
|
7
|
|
|
18,349
|
|
|
17,687
|
|
|
4
|
|
|||||||
Provision for credit losses
|
|
1,421
|
|
|
1,087
|
|
|
1,095
|
|
|
1,389
|
|
|
1,326
|
|
|
31
|
|
|
7
|
|
|
4,992
|
|
|
4,984
|
|
|
—
|
|
|||||||
Non-interest expense
|
|
2,487
|
|
|
2,360
|
|
|
2,253
|
|
|
2,171
|
|
|
2,496
|
|
|
5
|
|
|
—
|
|
|
9,271
|
|
|
8,542
|
|
|
9
|
|
|||||||
Income from continuing operations before income taxes
|
|
916
|
|
|
969
|
|
|
1,221
|
|
|
980
|
|
|
681
|
|
|
(5
|
)
|
|
35
|
|
|
4,086
|
|
|
4,161
|
|
|
(2
|
)
|
|||||||
Income tax provision
|
|
212
|
|
|
235
|
|
|
283
|
|
|
229
|
|
|
160
|
|
|
(10
|
)
|
|
33
|
|
|
959
|
|
|
970
|
|
|
(1
|
)
|
|||||||
Income from continuing operations, net of tax
|
|
$
|
704
|
|
|
$
|
734
|
|
|
$
|
938
|
|
|
$
|
751
|
|
|
$
|
521
|
|
|
(4
|
)
|
|
35
|
|
|
$
|
3,127
|
|
|
$
|
3,191
|
|
|
(2
|
)
|
Selected performance metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Period-end loans held for investment
|
|
$
|
128,236
|
|
|
$
|
113,681
|
|
|
$
|
112,141
|
|
|
$
|
109,836
|
|
|
$
|
116,361
|
|
|
13
|
|
|
10
|
|
|
$
|
128,236
|
|
|
$
|
116,361
|
|
|
10
|
|
Average loans held for investment
|
|
122,085
|
|
|
112,371
|
|
|
110,798
|
|
|
111,456
|
|
|
112,349
|
|
|
9
|
|
|
9
|
|
|
114,202
|
|
|
109,820
|
|
|
4
|
|
|||||||
Average yield on loans held for investment(8)
|
|
15.02
|
%
|
|
15.55
|
%
|
|
15.66
|
%
|
|
15.77
|
%
|
|
15.63
|
%
|
|
(53
|
)bps
|
|
(61
|
)bps
|
|
15.49
|
%
|
|
15.43
|
%
|
|
6
|
bps
|
|||||||
Total net revenue margin(9)
|
|
15.80
|
|
|
15.72
|
|
|
16.50
|
|
|
16.29
|
|
|
16.03
|
|
|
8
|
|
|
(23
|
)
|
|
16.07
|
|
|
16.11
|
|
|
(4
|
)
|
|||||||
Net charge-off rate
|
|
4.31
|
|
|
4.09
|
|
|
4.76
|
|
|
4.90
|
|
|
4.61
|
|
|
22
|
|
|
(30
|
)
|
|
4.51
|
|
|
4.62
|
|
|
(11
|
)
|
|||||||
30+ day performing delinquency rate
|
|
3.89
|
|
|
3.69
|
|
|
3.40
|
|
|
3.71
|
|
|
4.00
|
|
|
20
|
|
|
(11
|
)
|
|
3.89
|
|
|
4.00
|
|
|
(11
|
)
|
|||||||
30+ day delinquency rate
|
|
3.91
|
|
|
3.71
|
|
|
3.42
|
|
|
3.72
|
|
|
4.01
|
|
|
20
|
|
|
(10
|
)
|
|
3.91
|
|
|
4.01
|
|
|
(10
|
)
|
|||||||
Nonperforming loan rate(3)
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|
0.02
|
|
|
—
|
|
|||||||
Purchase volume(10)
|
|
$
|
116,631
|
|
|
$
|
108,034
|
|
|
$
|
106,903
|
|
|
$
|
93,197
|
|
|
$
|
105,696
|
|
|
8
|
%
|
|
10
|
%
|
|
$
|
424,765
|
|
|
$
|
387,102
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Q4 vs.
|
|
Year Ended December 31,
|
|||||||||||||||||||||||
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
2019 vs.
|
|||||||||||||||||
(Dollars in millions, except as noted)
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q4
|
|
2019
|
|
2018
|
|
2018
|
|||||||||||||||||
Domestic Card
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net interest income
|
|
$
|
3,473
|
|
|
$
|
3,299
|
|
|
$
|
3,220
|
|
|
$
|
3,273
|
|
|
$
|
3,309
|
|
|
5
|
%
|
|
5
|
%
|
|
$
|
13,265
|
|
|
$
|
12,926
|
|
|
3
|
%
|
Non-interest income
|
|
962
|
|
|
878
|
|
|
971
|
|
|
873
|
|
|
828
|
|
|
10
|
|
|
16
|
|
|
3,684
|
|
|
3,239
|
|
|
14
|
|
|||||||
Total net revenue
|
|
4,435
|
|
|
4,177
|
|
|
4,191
|
|
|
4,146
|
|
|
4,137
|
|
|
6
|
|
|
7
|
|
|
16,949
|
|
|
16,165
|
|
|
5
|
|
|||||||
Provision for credit losses
|
|
1,346
|
|
|
1,010
|
|
|
1,024
|
|
|
1,291
|
|
|
1,229
|
|
|
33
|
|
|
10
|
|
|
4,671
|
|
|
4,653
|
|
|
—
|
|
|||||||
Non-interest expense
|
|
2,249
|
|
|
2,076
|
|
|
2,034
|
|
|
1,949
|
|
|
2,216
|
|
|
8
|
|
|
1
|
|
|
8,308
|
|
|
7,621
|
|
|
9
|
|
|||||||
Income from continuing operations before income taxes
|
|
840
|
|
|
1,091
|
|
|
1,133
|
|
|
906
|
|
|
692
|
|
|
(23
|
)
|
|
21
|
|
|
3,970
|
|
|
3,891
|
|
|
2
|
|
|||||||
Income tax provision
|
|
196
|
|
|
254
|
|
|
264
|
|
|
211
|
|
|
162
|
|
|
(23
|
)
|
|
21
|
|
|
925
|
|
|
907
|
|
|
2
|
|
|||||||
Income from continuing operations, net of tax
|
|
$
|
644
|
|
|
$
|
837
|
|
|
$
|
869
|
|
|
$
|
695
|
|
|
$
|
530
|
|
|
(23
|
)
|
|
22
|
|
|
$
|
3,045
|
|
|
$
|
2,984
|
|
|
2
|
|
Selected performance metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Period-end loans held for investment
|
|
$
|
118,606
|
|
|
$
|
104,664
|
|
|
$
|
102,959
|
|
|
$
|
101,052
|
|
|
$
|
107,350
|
|
|
13
|
|
|
10
|
|
|
$
|
118,606
|
|
|
$
|
107,350
|
|
|
10
|
|
Average loans held for investment
|
|
112,965
|
|
|
103,426
|
|
|
101,930
|
|
|
102,667
|
|
|
103,391
|
|
|
9
|
|
|
9
|
|
|
105,270
|
|
|
100,832
|
|
|
4
|
|
|||||||
Average yield on loans held for investment(8)
|
|
14.91
|
%
|
|
15.74
|
%
|
|
15.60
|
%
|
|
15.69
|
%
|
|
15.58
|
%
|
|
(83
|
)bps
|
|
(67
|
)bps
|
|
15.47
|
%
|
|
15.36
|
%
|
|
11
|
bps
|
|||||||
Total net revenue margin(9)
|
|
15.70
|
|
|
16.15
|
|
|
16.45
|
|
|
16.15
|
|
|
16.01
|
|
|
(45
|
)
|
|
(31
|
)
|
|
16.10
|
|
|
16.03
|
|
|
7
|
|
|||||||
Net charge-off rate(2)
|
|
4.32
|
|
|
4.12
|
|
|
4.86
|
|
|
5.04
|
|
|
4.64
|
|
|
20
|
|
|
(32
|
)
|
|
4.58
|
|
|
4.74
|
|
|
(16
|
)
|
|||||||
30+ day performing delinquency rate(2)
|
|
3.93
|
|
|
3.71
|
|
|
3.40
|
|
|
3.72
|
|
|
4.04
|
|
|
22
|
|
|
(11
|
)
|
|
3.93
|
|
|
4.04
|
|
|
(11
|
)
|
|||||||
Purchase volume(10)
|
|
$
|
107,154
|
|
|
$
|
99,087
|
|
|
$
|
98,052
|
|
|
$
|
85,738
|
|
|
$
|
96,818
|
|
|
8
|
%
|
|
11
|
%
|
|
$
|
390,032
|
|
|
$
|
354,158
|
|
|
10
|
%
|
Refreshed FICO scores:(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Greater than 660
|
|
67
|
%
|
|
68
|
%
|
|
68
|
%
|
|
66
|
%
|
|
67
|
%
|
|
(1
|
)
|
|
—
|
|
|
67
|
%
|
|
67
|
%
|
|
—
|
|
|||||||
660 or below
|
|
33
|
|
|
32
|
|
|
32
|
|
|
34
|
|
|
33
|
|
|
1
|
|
|
—
|
|
|
33
|
|
|
33
|
|
|
—
|
|
|||||||
Total
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Q4 vs.
|
|
Year Ended December 31,
|
|||||||||||||||||||||||
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
2019 vs.
|
|||||||||||||||||
(Dollars in millions, except as noted)
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q4
|
|
2019
|
|
2018
|
|
2018
|
|||||||||||||||||
Consumer Banking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net interest income
|
|
$
|
1,662
|
|
|
$
|
1,682
|
|
|
$
|
1,709
|
|
|
$
|
1,679
|
|
|
$
|
1,689
|
|
|
(1
|
)%
|
|
(2
|
)%
|
|
$
|
6,732
|
|
|
$
|
6,549
|
|
|
3
|
%
|
Non-interest income
|
|
152
|
|
|
165
|
|
|
166
|
|
|
160
|
|
|
159
|
|
|
(8
|
)
|
|
(4
|
)
|
|
643
|
|
|
663
|
|
|
(3
|
)
|
|||||||
Total net revenue
|
|
1,814
|
|
|
1,847
|
|
|
1,875
|
|
|
1,839
|
|
|
1,848
|
|
|
(2
|
)
|
|
(2
|
)
|
|
7,375
|
|
|
7,212
|
|
|
2
|
|
|||||||
Provision for credit losses
|
|
335
|
|
|
203
|
|
|
165
|
|
|
235
|
|
|
303
|
|
|
65
|
|
|
11
|
|
|
938
|
|
|
838
|
|
|
12
|
|
|||||||
Non-interest expense
|
|
1,110
|
|
|
985
|
|
|
1,002
|
|
|
994
|
|
|
1,085
|
|
|
13
|
|
|
2
|
|
|
4,091
|
|
|
4,027
|
|
|
2
|
|
|||||||
Income from continuing operations before income taxes
|
|
369
|
|
|
659
|
|
|
708
|
|
|
610
|
|
|
460
|
|
|
(44
|
)
|
|
(20
|
)
|
|
2,346
|
|
|
2,347
|
|
|
—
|
|
|||||||
Income tax provision
|
|
86
|
|
|
154
|
|
|
165
|
|
|
142
|
|
|
107
|
|
|
(44
|
)
|
|
(20
|
)
|
|
547
|
|
|
547
|
|
|
—
|
|
|||||||
Income from continuing operations, net of tax
|
|
$
|
283
|
|
|
$
|
505
|
|
|
$
|
543
|
|
|
$
|
468
|
|
|
$
|
353
|
|
|
(44
|
)
|
|
(20
|
)
|
|
$
|
1,799
|
|
|
$
|
1,800
|
|
|
—
|
|
Selected performance metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Period-end loans held for investment(1)
|
|
$
|
63,065
|
|
|
$
|
62,015
|
|
|
$
|
60,327
|
|
|
$
|
59,248
|
|
|
$
|
59,205
|
|
|
2
|
|
|
7
|
|
|
$
|
63,065
|
|
|
$
|
59,205
|
|
|
7
|
|
Average loans held for investment(1)
|
|
62,596
|
|
|
61,269
|
|
|
59,858
|
|
|
59,065
|
|
|
59,342
|
|
|
2
|
|
|
5
|
|
|
60,708
|
|
|
64,951
|
|
|
(7
|
)
|
|||||||
Average yield on loans held for investment(8)
|
|
8.51
|
%
|
|
8.47
|
%
|
|
8.36
|
%
|
|
8.15
|
%
|
|
8.14
|
%
|
|
4
|
bps
|
|
37
|
bps
|
|
8.37
|
%
|
|
7.54
|
%
|
|
83
|
bps
|
|||||||
Auto loan originations
|
|
$
|
7,527
|
|
|
$
|
8,175
|
|
|
$
|
7,327
|
|
|
$
|
6,222
|
|
|
$
|
5,932
|
|
|
(8
|
)%
|
|
27
|
%
|
|
$
|
29,251
|
|
|
$
|
26,276
|
|
|
11
|
%
|
Period-end deposits
|
|
213,099
|
|
|
206,423
|
|
|
205,220
|
|
|
205,439
|
|
|
198,607
|
|
|
3
|
|
|
7
|
|
|
213,099
|
|
|
198,607
|
|
|
7
|
|
|||||||
Average deposits
|
|
209,783
|
|
|
204,933
|
|
|
204,164
|
|
|
201,072
|
|
|
196,348
|
|
|
2
|
|
|
7
|
|
|
205,012
|
|
|
193,053
|
|
|
6
|
|
|||||||
Average deposits interest rate
|
|
1.20
|
%
|
|
1.31
|
%
|
|
1.26
|
%
|
|
1.18
|
%
|
|
1.10
|
%
|
|
(11
|
)bps
|
|
10
|
bps
|
|
1.24
|
%
|
|
0.95
|
%
|
|
29
|
bps
|
|||||||
Net charge-off rate
|
|
1.93
|
|
|
1.64
|
|
|
1.15
|
|
|
1.49
|
|
|
2.01
|
|
|
29
|
|
|
(8
|
)
|
|
1.56
|
|
|
1.51
|
|
|
5
|
|
|||||||
30+ day performing delinquency rate
|
|
6.63
|
|
|
6.23
|
|
|
5.87
|
|
|
5.55
|
|
|
6.67
|
|
|
40
|
|
|
(4
|
)
|
|
6.63
|
|
|
6.67
|
|
|
(4
|
)
|
|||||||
30+ day delinquency rate
|
|
7.34
|
|
|
6.86
|
|
|
6.41
|
|
|
6.02
|
|
|
7.36
|
|
|
48
|
|
|
(2
|
)
|
|
7.34
|
|
|
7.36
|
|
|
(2
|
)
|
|||||||
Nonperforming loan rate(3)
|
|
0.81
|
|
|
0.74
|
|
|
0.66
|
|
|
0.59
|
|
|
0.81
|
|
|
7
|
|
|
—
|
|
|
0.81
|
|
|
0.81
|
|
|
—
|
|
|||||||
Nonperforming asset rate(4)
|
|
0.91
|
|
|
0.83
|
|
|
0.75
|
|
|
0.68
|
|
|
0.90
|
|
|
8
|
|
|
1
|
|
|
0.91
|
|
|
0.90
|
|
|
1
|
|
|||||||
Auto—At origination FICO scores:(12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Greater than 660
|
|
48
|
%
|
|
48
|
%
|
|
49
|
%
|
|
49
|
%
|
|
50
|
%
|
|
—
|
|
|
(2
|
)%
|
|
48
|
%
|
|
50
|
%
|
|
(2
|
)%
|
|||||||
621 - 660
|
|
20
|
|
|
20
|
|
|
19
|
|
|
19
|
|
|
19
|
|
|
—
|
|
|
1
|
|
|
20
|
|
|
19
|
|
|
1
|
|
|||||||
620 or below
|
|
32
|
|
|
32
|
|
|
32
|
|
|
32
|
|
|
31
|
|
|
—
|
|
|
1
|
|
|
32
|
|
|
31
|
|
|
1
|
|
|||||||
Total
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Q4 vs.
|
|
Year Ended December 31,
|
|||||||||||||||||||||||
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
2019 vs.
|
|||||||||||||||||
(Dollars in millions, except as noted)
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q4
|
|
2019
|
|
2018
|
|
2018
|
|||||||||||||||||
Commercial Banking
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net interest income
|
|
$
|
494
|
|
|
$
|
486
|
|
|
$
|
514
|
|
|
$
|
489
|
|
|
$
|
508
|
|
|
2
|
%
|
|
(3
|
)%
|
|
$
|
1,983
|
|
|
$
|
2,044
|
|
|
(3
|
)%
|
Non-interest income
|
|
223
|
|
|
221
|
|
|
200
|
|
|
187
|
|
|
159
|
|
|
1
|
|
|
40
|
|
|
831
|
|
|
744
|
|
|
12
|
|
|||||||
Total net revenue(6)(7)
|
|
717
|
|
|
707
|
|
|
714
|
|
|
676
|
|
|
667
|
|
|
1
|
|
|
7
|
|
|
2,814
|
|
|
2,788
|
|
|
1
|
|
|||||||
Provision for credit losses
|
|
62
|
|
|
93
|
|
|
82
|
|
|
69
|
|
|
9
|
|
|
(33
|
)
|
|
**
|
|
|
306
|
|
|
83
|
|
|
**
|
|
|||||||
Non-interest expense
|
|
441
|
|
|
414
|
|
|
427
|
|
|
417
|
|
|
434
|
|
|
7
|
|
|
2
|
|
|
1,699
|
|
|
1,654
|
|
|
3
|
|
|||||||
Income from continuing operations before income taxes
|
|
214
|
|
|
200
|
|
|
205
|
|
|
190
|
|
|
224
|
|
|
7
|
|
|
(4
|
)
|
|
809
|
|
|
1,051
|
|
|
(23
|
)
|
|||||||
Income tax provision
|
|
50
|
|
|
46
|
|
|
48
|
|
|
44
|
|
|
52
|
|
|
9
|
|
|
(4
|
)
|
|
188
|
|
|
245
|
|
|
(23
|
)
|
|||||||
Income from continuing operations, net of tax
|
|
$
|
164
|
|
|
$
|
154
|
|
|
$
|
157
|
|
|
$
|
146
|
|
|
$
|
172
|
|
|
6
|
|
|
(5
|
)
|
|
$
|
621
|
|
|
$
|
806
|
|
|
(23
|
)
|
Selected performance metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Period-end loans held for investment
|
|
$
|
74,508
|
|
|
$
|
73,659
|
|
|
$
|
71,992
|
|
|
$
|
71,189
|
|
|
$
|
70,333
|
|
|
1
|
|
|
6
|
|
|
$
|
74,508
|
|
|
$
|
70,333
|
|
|
6
|
|
Average loans held for investment
|
|
74,189
|
|
|
72,507
|
|
|
71,997
|
|
|
71,438
|
|
|
69,680
|
|
|
2
|
|
|
6
|
|
|
72,540
|
|
|
67,330
|
|
|
8
|
|
|||||||
Average yield on loans held for investment(6)(8)
|
|
4.22
|
%
|
|
4.45
|
%
|
|
4.75
|
%
|
|
4.62
|
%
|
|
4.67
|
%
|
|
(23
|
)bps
|
|
(45
|
)bps
|
|
4.51
|
%
|
|
4.46
|
%
|
|
5
|
bps
|
|||||||
Period-end deposits
|
|
$
|
32,134
|
|
|
$
|
30,923
|
|
|
$
|
30,761
|
|
|
$
|
31,248
|
|
|
$
|
29,480
|
|
|
4
|
%
|
|
9
|
%
|
|
$
|
32,134
|
|
|
$
|
29,480
|
|
|
9
|
%
|
Average deposits
|
|
32,034
|
|
|
30,693
|
|
|
31,364
|
|
|
30,816
|
|
|
30,680
|
|
|
4
|
|
|
4
|
|
|
31,229
|
|
|
32,175
|
|
|
(3
|
)
|
|||||||
Average deposits interest rate
|
|
1.10
|
%
|
|
1.25
|
%
|
|
1.28
|
%
|
|
1.11
|
%
|
|
0.95
|
%
|
|
(15
|
)bps
|
|
15
|
bps
|
|
1.18
|
%
|
|
0.72
|
%
|
|
46
|
bps
|
|||||||
Net charge-off rate
|
|
0.35
|
|
|
0.33
|
|
|
0.09
|
|
|
0.08
|
|
|
0.10
|
|
|
2
|
|
|
25
|
|
|
0.22
|
|
|
0.08
|
|
|
14
|
|
|||||||
Nonperforming loan rate(3)
|
|
0.60
|
|
|
0.61
|
|
|
0.50
|
|
|
0.53
|
|
|
0.44
|
|
|
(1
|
)
|
|
16
|
|
|
0.60
|
|
|
0.44
|
|
|
16
|
|
|||||||
Nonperforming asset rate(4)
|
|
0.60
|
|
|
0.61
|
|
|
0.50
|
|
|
0.53
|
|
|
0.45
|
|
|
(1
|
)
|
|
15
|
|
|
0.60
|
|
|
0.45
|
|
|
15
|
|
|||||||
Risk category:(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noncriticized
|
|
$
|
71,848
|
|
|
$
|
71,144
|
|
|
$
|
69,390
|
|
|
$
|
68,594
|
|
|
$
|
68,043
|
|
|
1
|
%
|
|
6
|
%
|
|
$
|
71,848
|
|
|
$
|
68,043
|
|
|
6
|
%
|
Criticized performing
|
|
2,181
|
|
|
2,035
|
|
|
2,211
|
|
|
2,094
|
|
|
1,848
|
|
|
7
|
|
|
18
|
|
|
2,181
|
|
|
1,848
|
|
|
18
|
|
|||||||
Criticized nonperforming
|
|
448
|
|
|
449
|
|
|
360
|
|
|
378
|
|
|
312
|
|
|
—
|
|
|
44
|
|
|
448
|
|
|
312
|
|
|
44
|
|
|||||||
PCI loans
|
|
31
|
|
|
31
|
|
|
31
|
|
|
123
|
|
|
130
|
|
|
—
|
|
|
(76
|
)
|
|
31
|
|
|
130
|
|
|
(76
|
)
|
|||||||
Total commercial banking loans
|
|
$
|
74,508
|
|
|
$
|
73,659
|
|
|
$
|
71,992
|
|
|
$
|
71,189
|
|
|
$
|
70,333
|
|
|
1
|
|
|
6
|
|
|
$
|
74,508
|
|
|
$
|
70,333
|
|
|
6
|
|
Risk category as a percentage of period-end loans held for investment:(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Noncriticized
|
|
96.5
|
%
|
|
96.6
|
%
|
|
96.4
|
%
|
|
96.4
|
%
|
|
96.8
|
%
|
|
(10
|
)bps
|
|
(30
|
)bps
|
|
96.5
|
%
|
|
96.8
|
%
|
|
(30
|
)bps
|
|||||||
Criticized performing
|
|
2.9
|
|
|
2.8
|
|
|
3.1
|
|
|
2.9
|
|
|
2.6
|
|
|
10
|
|
|
30
|
|
|
2.9
|
|
|
2.6
|
|
|
30
|
|
|||||||
Criticized nonperforming
|
|
0.6
|
|
|
0.6
|
|
|
0.5
|
|
|
0.5
|
|
|
0.4
|
|
|
—
|
|
|
20
|
|
|
0.6
|
|
|
0.4
|
|
|
20
|
|
|||||||
PCI loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
0.2
|
|
|
(20
|
)
|
|||||||
Total commercial banking loans
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Q4 vs.
|
|
Year Ended December 31,
|
|||||||||||||||||||||||
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
2019 vs.
|
|||||||||||||||||
(Dollars in millions)
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q4
|
|
2019
|
|
2018
|
|
2018
|
|||||||||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net interest income (loss)
|
|
$
|
116
|
|
|
$
|
23
|
|
|
$
|
(8
|
)
|
|
$
|
33
|
|
|
$
|
6
|
|
|
**
|
|
|
**
|
|
|
$
|
164
|
|
|
$
|
115
|
|
|
43
|
%
|
Non-interest income (loss)(1)
|
|
(44
|
)
|
|
(34
|
)
|
|
(26
|
)
|
|
(5
|
)
|
|
(11
|
)
|
|
29
|
%
|
|
**
|
|
|
(109
|
)
|
|
274
|
|
|
**
|
|
|||||||
Total net revenue (loss)(6)(7)
|
|
72
|
|
|
(11
|
)
|
|
(34
|
)
|
|
28
|
|
|
(5
|
)
|
|
**
|
|
|
**
|
|
|
55
|
|
|
389
|
|
|
(86
|
)
|
|||||||
Benefit for credit losses(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
**
|
|
|
**
|
|
|
—
|
|
|
(49
|
)
|
|
**
|
|
|||||||
Non-interest expense(14)(15)
|
|
123
|
|
|
113
|
|
|
97
|
|
|
89
|
|
|
117
|
|
|
9
|
|
|
5
|
%
|
|
422
|
|
|
679
|
|
|
(38
|
)
|
|||||||
Loss from continuing operations before income taxes
|
|
(51
|
)
|
|
(124
|
)
|
|
(131
|
)
|
|
(61
|
)
|
|
(122
|
)
|
|
(59
|
)
|
|
(58
|
)
|
|
(367
|
)
|
|
(241
|
)
|
|
52
|
|
|||||||
Income tax benefit
|
|
(78
|
)
|
|
(60
|
)
|
|
(109
|
)
|
|
(106
|
)
|
|
(340
|
)
|
|
30
|
|
|
(77
|
)
|
|
(353
|
)
|
|
(469
|
)
|
|
(25
|
)
|
|||||||
Income (loss) from continuing operations, net of tax
|
|
$
|
27
|
|
|
$
|
(64
|
)
|
|
$
|
(22
|
)
|
|
$
|
45
|
|
|
$
|
218
|
|
|
**
|
|
|
(88
|
)
|
|
$
|
(14
|
)
|
|
$
|
228
|
|
|
**
|
|
Selected performance metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Period-end deposits
|
|
$
|
17,464
|
|
|
$
|
19,802
|
|
|
$
|
18,554
|
|
|
$
|
18,420
|
|
|
$
|
21,677
|
|
|
(12
|
)
|
|
(19
|
)
|
|
$
|
17,464
|
|
|
$
|
21,677
|
|
|
(19
|
)
|
Average deposits
|
|
18,223
|
|
|
19,456
|
|
|
18,106
|
|
|
19,522
|
|
|
20,635
|
|
|
(6
|
)
|
|
(12
|
)
|
|
18,824
|
|
|
21,889
|
|
|
(14
|
)
|
|||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest income
|
|
$
|
6,066
|
|
|
$
|
5,737
|
|
|
$
|
5,746
|
|
|
$
|
5,791
|
|
|
$
|
5,820
|
|
|
6
|
%
|
|
4
|
%
|
|
$
|
23,340
|
|
|
$
|
22,875
|
|
|
2
|
%
|
Non-interest income
|
|
1,361
|
|
|
1,222
|
|
|
1,378
|
|
|
1,292
|
|
|
1,193
|
|
|
11
|
|
|
14
|
|
|
5,253
|
|
|
5,201
|
|
|
1
|
|
|||||||
Total net revenue
|
|
7,427
|
|
|
6,959
|
|
|
7,124
|
|
|
7,083
|
|
|
7,013
|
|
|
7
|
|
|
6
|
|
|
28,593
|
|
|
28,076
|
|
|
2
|
|
|||||||
Provision for credit losses
|
|
1,818
|
|
|
1,383
|
|
|
1,342
|
|
|
1,693
|
|
|
1,638
|
|
|
31
|
|
|
11
|
|
|
6,236
|
|
|
5,856
|
|
|
6
|
|
|||||||
Non-interest expense
|
|
4,161
|
|
|
3,872
|
|
|
3,779
|
|
|
3,671
|
|
|
4,132
|
|
|
7
|
|
|
1
|
|
|
15,483
|
|
|
14,902
|
|
|
4
|
|
|||||||
Income from continuing operations before income taxes
|
|
1,448
|
|
|
1,704
|
|
|
2,003
|
|
|
1,719
|
|
|
1,243
|
|
|
(15
|
)
|
|
16
|
|
|
6,874
|
|
|
7,318
|
|
|
(6
|
)
|
|||||||
Income tax provision (benefit)
|
|
270
|
|
|
375
|
|
|
387
|
|
|
309
|
|
|
(21
|
)
|
|
(28
|
)
|
|
**
|
|
|
1,341
|
|
|
1,293
|
|
|
4
|
|
|||||||
Income from continuing operations, net of tax
|
|
$
|
1,178
|
|
|
$
|
1,329
|
|
|
$
|
1,616
|
|
|
$
|
1,410
|
|
|
$
|
1,264
|
|
|
(11
|
)
|
|
(7
|
)
|
|
$
|
5,533
|
|
|
$
|
6,025
|
|
|
(8
|
)
|
Selected performance metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Period-end loans held for investment
|
|
$
|
265,809
|
|
|
$
|
249,355
|
|
|
$
|
244,460
|
|
|
$
|
240,273
|
|
|
$
|
245,899
|
|
|
7
|
|
|
8
|
|
|
$
|
265,809
|
|
|
$
|
245,899
|
|
|
8
|
|
Average loans held for investment
|
|
258,870
|
|
|
246,147
|
|
|
242,653
|
|
|
241,959
|
|
|
241,371
|
|
|
5
|
|
|
7
|
|
|
247,450
|
|
|
242,118
|
|
|
2
|
|
|||||||
Period-end deposits
|
|
262,697
|
|
|
257,148
|
|
|
254,535
|
|
|
255,107
|
|
|
249,764
|
|
|
2
|
|
|
5
|
|
|
262,697
|
|
|
249,764
|
|
|
5
|
|
|||||||
Average deposits
|
|
260,040
|
|
|
255,082
|
|
|
253,634
|
|
|
251,410
|
|
|
247,663
|
|
|
2
|
|
|
5
|
|
|
255,065
|
|
|
247,117
|
|
|
3
|
|
(1)
|
In 2018, we sold all of our consumer home loan portfolio and recognized a net gain of approximately $499 million in the Other category, including a benefit for credit losses of $46 million.
|
(2)
|
On October 11, 2019, we completed the acquisition of the existing portfolio of Walmart’s cobrand and private label credit card receivables. This acquisition reduced the domestic credit card net charge-off rates by 29 basis points for the fourth quarter and 8 basis points for the year ended December 31, 2019, and increased the domestic credit card 30+ day performing delinquency rate by 17 basis points as of December 31, 2019.
|
(3)
|
Nonperforming loan rates are calculated based on nonperforming loans for each category divided by period-end total loans held for investment for each respective category.
|
(4)
|
Nonperforming assets consist of nonperforming loans, repossessed assets and other foreclosed assets. The total nonperforming asset rate is calculated based on total nonperforming assets divided by the combined period-end total loans held for investment, repossessed assets and other foreclosed assets.
|
(5)
|
Represents foreign currency translation adjustments.
|
(6)
|
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.
|
(7)
|
In the first quarter of 2019, we made a change in how revenue is measured in our Commercial Banking business by revising the allocation of tax benefits on certain tax-advantaged investments. As such, prior period results have been recast to conform with the current period presentation. The result of this measurement change reduced the previously reported total net revenue in our Commercial Banking business by $20 million and $108 million for the fourth quarter and year ended December 31, 2018, with an offsetting increase in the Other category.
|
(8)
|
Average yield on loans held for investment is calculated based on annualized interest income for the period divided by average loans held for investment during the period for the respective loan category. Annualized interest income is computed based on the effective yield of the respective loan category and does not include any allocations, such as funds transfer pricing.
|
(9)
|
Total net revenue margin is calculated based on annualized total net revenue for the period divided by average loans held for investment during the period for the respective loan category.
|
(10)
|
Purchase volume consists of purchase transactions, net of returns, for the period, and excludes cash advance and balance transfer transactions.
|
(11)
|
Percentages represent period-end loans held for investment in each credit score category. Domestic card credit scores generally represent FICO scores. These scores are obtained from one of the major credit bureaus at origination and are refreshed monthly thereafter. We approximate non-FICO credit scores to comparable FICO scores for consistency purposes. Balances for which no credit score is available or the credit score is invalid are included in the 660 or below category.
|
(12)
|
Percentages represent period-end loans held for investment in each credit score category. Auto credit scores generally represent average FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category.
|
(13)
|
Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities.
|
(14)
|
Includes charges incurred as a result of restructuring activities.
|
(15)
|
Includes $16 million of net Cybersecurity Incident expenses in Q4 2019, consisting of $23 million of expenses and $7 million of insurance recoveries; and $22 million of net Cybersecurity Incident expenses in Q3 2019, consisting of $49 million of expenses and $27 million of insurance recoveries.
|
**
|
Not meaningful.
|
|
|
Basel III Standardized Approach
|
||||||||||||||||||
(Dollars in millions, except as noted)
|
|
December 31,
2019 |
|
September 30,
2019 |
|
June 30,
2019 |
|
March 31,
2019 |
|
December 31,
2018 |
||||||||||
Regulatory Capital Metrics
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common equity excluding AOCI
|
|
$
|
52,001
|
|
|
$
|
51,959
|
|
|
$
|
51,236
|
|
|
$
|
49,781
|
|
|
$
|
48,570
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
AOCI(2)
|
|
1,156
|
|
|
453
|
|
|
170
|
|
|
(660
|
)
|
|
(1,263
|
)
|
|||||
Goodwill, net of related deferred tax liabilities
|
|
(14,465
|
)
|
|
(14,439
|
)
|
|
(14,365
|
)
|
|
(14,369
|
)
|
|
(14,373
|
)
|
|||||
Intangible assets, net of related deferred tax liabilities
|
|
(170
|
)
|
|
(180
|
)
|
|
(194
|
)
|
|
(223
|
)
|
|
(254
|
)
|
|||||
Other
|
|
(360
|
)
|
|
(588
|
)
|
|
(401
|
)
|
|
113
|
|
|
391
|
|
|||||
Common equity Tier 1 capital
|
|
$
|
38,162
|
|
|
$
|
37,205
|
|
|
$
|
36,446
|
|
|
$
|
34,642
|
|
|
$
|
33,071
|
|
Tier 1 capital
|
|
$
|
43,015
|
|
|
$
|
43,028
|
|
|
$
|
40,806
|
|
|
$
|
39,002
|
|
|
$
|
37,431
|
|
Total capital(3)
|
|
50,350
|
|
|
50,174
|
|
|
47,919
|
|
|
46,042
|
|
|
44,645
|
|
|||||
Risk-weighted assets
|
|
313,308
|
|
|
298,130
|
|
|
295,255
|
|
|
291,483
|
|
|
294,950
|
|
|||||
Adjusted average assets(4)
|
|
368,511
|
|
|
360,266
|
|
|
356,518
|
|
|
355,781
|
|
|
350,606
|
|
|||||
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common equity Tier 1 capital(5)
|
|
12.2
|
%
|
|
12.5
|
%
|
|
12.3
|
%
|
|
11.9
|
%
|
|
11.2
|
%
|
|||||
Tier 1 capital(6)
|
|
13.7
|
|
|
14.4
|
|
|
13.8
|
|
|
13.4
|
|
|
12.7
|
|
|||||
Total capital(7)
|
|
16.1
|
|
|
16.8
|
|
|
16.2
|
|
|
15.8
|
|
|
15.1
|
|
|||||
Tier 1 leverage(4)
|
|
11.7
|
|
|
11.9
|
|
|
11.4
|
|
|
11.0
|
|
|
10.7
|
|
|||||
Tangible common equity (“TCE”)(8)
|
|
10.2
|
|
|
10.3
|
|
|
10.2
|
|
|
9.6
|
|
|
9.1
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Year Ended
|
||||||||||||||||||||||||||||||
|
|
December 31, 2019
|
|
September 30, 2019
|
|
December 31, 2019
|
||||||||||||||||||||||||||||||
(Dollars in millions, except per share data and as noted)
|
|
Reported Results
|
|
Adj.(9)
|
|
Adjusted Results
|
|
Reported Results
|
|
Adj.(9)
|
|
Adjusted Results
|
|
Reported Results
|
|
Adj.(9)
|
|
Adjusted Results
|
||||||||||||||||||
Selected income statement data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net interest income
|
|
$
|
6,066
|
|
|
—
|
|
|
$
|
6,066
|
|
|
$
|
17,274
|
|
|
$
|
67
|
|
|
$
|
17,341
|
|
|
$
|
23,340
|
|
|
$
|
67
|
|
|
$
|
23,407
|
|
|
Non-interest income
|
|
1,361
|
|
|
—
|
|
|
1,361
|
|
|
3,892
|
|
|
74
|
|
|
3,966
|
|
|
5,253
|
|
|
74
|
|
|
5,327
|
|
|||||||||
Total net revenue
|
|
7,427
|
|
|
—
|
|
|
7,427
|
|
|
21,166
|
|
|
141
|
|
|
21,307
|
|
|
28,593
|
|
|
141
|
|
|
28,734
|
|
|||||||||
Provision for credit losses
|
|
1,818
|
|
|
$
|
(84
|
)
|
|
1,734
|
|
|
4,418
|
|
|
—
|
|
|
4,418
|
|
|
6,236
|
|
|
(84
|
)
|
|
6,152
|
|
||||||||
Non-interest expense
|
|
4,161
|
|
|
(64
|
)
|
|
4,097
|
|
|
11,322
|
|
|
(284
|
)
|
|
11,038
|
|
|
15,483
|
|
|
(348
|
)
|
|
15,135
|
|
|||||||||
Income from continuing operations before income taxes
|
|
1,448
|
|
|
148
|
|
|
1,596
|
|
|
5,426
|
|
|
425
|
|
|
5,851
|
|
|
6,874
|
|
|
573
|
|
|
7,447
|
|
|||||||||
Income tax provision
|
|
270
|
|
|
35
|
|
|
305
|
|
|
1,071
|
|
|
46
|
|
|
1,117
|
|
|
1,341
|
|
|
81
|
|
|
1,422
|
|
|||||||||
Income from continuing operations, net of tax
|
|
1,178
|
|
|
113
|
|
|
1,291
|
|
|
4,355
|
|
|
379
|
|
|
4,734
|
|
|
5,533
|
|
|
492
|
|
|
6,025
|
|
|||||||||
Income (loss) from discontinued operations, net of tax
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
15
|
|
|
—
|
|
|
15
|
|
|
13
|
|
|
—
|
|
|
13
|
|
|||||||||
Net income
|
|
1,176
|
|
|
113
|
|
|
1,289
|
|
|
4,370
|
|
|
379
|
|
|
4,749
|
|
|
5,546
|
|
|
492
|
|
|
6,038
|
|
|||||||||
Dividends and undistributed earnings allocated to participating securities(11)
|
|
(7
|
)
|
|
(1
|
)
|
|
(8
|
)
|
|
(34
|
)
|
|
(3
|
)
|
|
(37
|
)
|
|
(41
|
)
|
|
(3
|
)
|
|
(44
|
)
|
|||||||||
Preferred stock dividends
|
|
(97
|
)
|
|
—
|
|
|
(97
|
)
|
|
(185
|
)
|
|
—
|
|
|
(185
|
)
|
|
(282
|
)
|
|
—
|
|
|
(282
|
)
|
|||||||||
Issuance cost for redeemed preferred stock
|
|
(31
|
)
|
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
(31
|
)
|
|||||||||
Net income available to common stockholders
|
|
$
|
1,041
|
|
|
$
|
112
|
|
|
$
|
1,153
|
|
|
$
|
4,151
|
|
|
$
|
376
|
|
|
$
|
4,527
|
|
|
$
|
5,192
|
|
|
$
|
489
|
|
|
$
|
5,681
|
|
Selected performance metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Diluted EPS(11)
|
|
$
|
2.25
|
|
|
$
|
0.24
|
|
|
$
|
2.49
|
|
|
$
|
8.79
|
|
|
$
|
0.80
|
|
|
$
|
9.59
|
|
|
$
|
11.05
|
|
|
$
|
1.04
|
|
|
$
|
12.09
|
|
Efficiency ratio
|
|
56.03
|
%
|
|
(87
|
)bps
|
|
55.16
|
%
|
|
53.49
|
%
|
|
(169
|
)bps
|
|
51.80
|
%
|
|
54.15
|
%
|
|
(148
|
)bps
|
|
52.67
|
%
|
|||||||||
Operating efficiency ratio
|
|
46.47
|
|
|
(87
|
)
|
|
45.60
|
|
|
46.10
|
|
|
(164
|
)
|
|
44.46
|
|
|
46.20
|
|
|
(144
|
)
|
|
44.76
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Year Ended
|
||||||||||||||||||||||||||||||
|
|
December 31, 2018
|
|
September 30, 2018
|
|
December 31, 2018
|
||||||||||||||||||||||||||||||
(Dollars in millions, except per share data and as noted)
|
|
Reported Results
|
|
Adj.(10)
|
|
Adjusted Results
|
|
Reported Results
|
|
Adj.(10)
|
|
Adjusted Results
|
|
Reported Results
|
|
Adj.(10)
|
|
Adjusted Results
|
||||||||||||||||||
Selected income statement data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net interest income
|
|
$
|
5,820
|
|
|
$
|
6
|
|
|
$
|
5,826
|
|
|
$
|
17,055
|
|
|
$
|
26
|
|
|
$
|
17,081
|
|
|
$
|
22,875
|
|
|
$
|
32
|
|
|
$
|
22,907
|
|
Non-interest income
|
|
1,193
|
|
|
(64
|
)
|
|
1,129
|
|
|
4,008
|
|
|
(514
|
)
|
|
3,494
|
|
|
5,201
|
|
|
(578
|
)
|
|
4,623
|
|
|||||||||
Total net revenue
|
|
7,013
|
|
|
(58
|
)
|
|
6,955
|
|
|
21,063
|
|
|
(488
|
)
|
|
20,575
|
|
|
28,076
|
|
|
(546
|
)
|
|
27,530
|
|
|||||||||
Provision for credit losses
|
|
1,638
|
|
|
—
|
|
|
1,638
|
|
|
4,218
|
|
|
48
|
|
|
4,266
|
|
|
5,856
|
|
|
48
|
|
|
5,904
|
|
|||||||||
Non-interest expense
|
|
4,132
|
|
|
(34
|
)
|
|
4,098
|
|
|
10,770
|
|
|
(248
|
)
|
|
10,522
|
|
|
14,902
|
|
|
(282
|
)
|
|
14,620
|
|
|||||||||
Income from continuing operations before income taxes
|
|
1,243
|
|
|
(24
|
)
|
|
1,219
|
|
|
6,075
|
|
|
(288
|
)
|
|
5,787
|
|
|
7,318
|
|
|
(312
|
)
|
|
7,006
|
|
|||||||||
Income tax provision (benefit)
|
|
(21
|
)
|
|
266
|
|
|
245
|
|
|
1,314
|
|
|
(121
|
)
|
|
1,193
|
|
|
1,293
|
|
|
145
|
|
|
1,438
|
|
|||||||||
Income from continuing operations, net of tax
|
|
1,264
|
|
|
(290
|
)
|
|
974
|
|
|
4,761
|
|
|
(167
|
)
|
|
4,594
|
|
|
6,025
|
|
|
(457
|
)
|
|
5,568
|
|
|||||||||
Income (loss) from discontinued operations, net of tax
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|||||||||
Net income
|
|
1,261
|
|
|
(290
|
)
|
|
971
|
|
|
4,754
|
|
|
(167
|
)
|
|
4,587
|
|
|
6,015
|
|
|
(457
|
)
|
|
5,558
|
|
|||||||||
Dividends and undistributed earnings allocated to participating securities(11)
|
|
(9
|
)
|
|
2
|
|
|
(7
|
)
|
|
(32
|
)
|
|
1
|
|
|
(31
|
)
|
|
(40
|
)
|
|
3
|
|
|
(37
|
)
|
|||||||||
Preferred stock dividends
|
|
(80
|
)
|
|
—
|
|
|
(80
|
)
|
|
(185
|
)
|
|
—
|
|
|
(185
|
)
|
|
(265
|
)
|
|
—
|
|
|
(265
|
)
|
|||||||||
Net income available to common stockholders
|
|
$
|
1,172
|
|
|
$
|
(288
|
)
|
|
$
|
884
|
|
|
$
|
4,537
|
|
|
$
|
(166
|
)
|
|
$
|
4,371
|
|
|
$
|
5,710
|
|
|
$
|
(454
|
)
|
|
$
|
5,256
|
|
Selected performance metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Diluted EPS(11)
|
|
$
|
2.48
|
|
|
$
|
(0.61
|
)
|
|
$
|
1.87
|
|
|
$
|
9.32
|
|
|
$
|
(0.34
|
)
|
|
$
|
8.98
|
|
|
$
|
11.82
|
|
|
$
|
(0.94
|
)
|
|
$
|
10.88
|
|
Efficiency ratio
|
|
58.92
|
%
|
|
—
|
|
|
58.92
|
%
|
|
51.13
|
%
|
|
1
|
bps
|
|
51.14
|
%
|
|
53.08
|
%
|
|
3
|
bps
|
|
53.11
|
%
|
|||||||||
Operating efficiency ratio
|
|
47.07
|
|
|
(10
|
)bps
|
|
46.97
|
|
|
44.76
|
|
|
(15
|
)
|
|
44.61
|
|
|
45.33
|
|
|
(12
|
)
|
|
45.21
|
|
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2018
|
||||||||||
(Dollars in millions)
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
||||||||||
Tangible Common Equity (Period-End)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity
|
|
$
|
58,011
|
|
|
$
|
58,235
|
|
|
$
|
55,767
|
|
|
$
|
53,481
|
|
|
$
|
51,668
|
|
Goodwill and intangible assets(12)
|
|
(14,932
|
)
|
|
(14,940
|
)
|
|
(14,886
|
)
|
|
(14,904
|
)
|
|
(14,941
|
)
|
|||||
Noncumulative perpetual preferred stock
|
|
(4,853
|
)
|
|
(5,823
|
)
|
|
(4,360
|
)
|
|
(4,360
|
)
|
|
(4,360
|
)
|
|||||
Tangible common equity
|
|
$
|
38,226
|
|
|
$
|
37,472
|
|
|
$
|
36,521
|
|
|
$
|
34,217
|
|
|
$
|
32,367
|
|
Tangible Common Equity (Average)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity
|
|
$
|
58,148
|
|
|
$
|
57,245
|
|
|
$
|
54,570
|
|
|
$
|
52,720
|
|
|
$
|
51,114
|
|
Goodwill and intangible assets(12)
|
|
(14,967
|
)
|
|
(14,908
|
)
|
|
(14,900
|
)
|
|
(14,932
|
)
|
|
(14,953
|
)
|
|||||
Noncumulative perpetual preferred stock
|
|
(5,506
|
)
|
|
(4,678
|
)
|
|
(4,360
|
)
|
|
(4,360
|
)
|
|
(4,360
|
)
|
|||||
Tangible common equity
|
|
$
|
37,675
|
|
|
$
|
37,659
|
|
|
$
|
35,310
|
|
|
$
|
33,428
|
|
|
$
|
31,801
|
|
Tangible Assets (Period-End)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
$
|
390,365
|
|
|
$
|
378,810
|
|
|
$
|
373,619
|
|
|
$
|
373,191
|
|
|
$
|
372,538
|
|
Goodwill and intangible assets(12)
|
|
(14,932
|
)
|
|
(14,940
|
)
|
|
(14,886
|
)
|
|
(14,904
|
)
|
|
(14,941
|
)
|
|||||
Tangible assets
|
|
$
|
375,433
|
|
|
$
|
363,870
|
|
|
$
|
358,733
|
|
|
$
|
358,287
|
|
|
$
|
357,597
|
|
Tangible Assets (Average)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
$
|
383,162
|
|
|
$
|
374,905
|
|
|
$
|
371,095
|
|
|
$
|
370,394
|
|
|
$
|
365,243
|
|
Goodwill and intangible assets(12)
|
|
(14,967
|
)
|
|
(14,908
|
)
|
|
(14,900
|
)
|
|
(14,932
|
)
|
|
(14,953
|
)
|
|||||
Tangible assets
|
|
$
|
368,195
|
|
|
$
|
359,997
|
|
|
$
|
356,195
|
|
|
$
|
355,462
|
|
|
$
|
350,290
|
|
(1)
|
Regulatory capital metrics and capital ratios as of December 31, 2019 are preliminary and therefore subject to change.
|
(2)
|
Amounts presented are net of tax.
|
(3)
|
Total capital equals the sum of Tier 1 capital and Tier 2 capital.
|
(4)
|
Adjusted average assets for the purpose of calculating our Tier 1 leverage ratio represents total average assets adjusted for amounts that are deducted from Tier 1 capital, predominately goodwill and intangible assets. Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets.
|
(5)
|
Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.
|
(6)
|
Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
|
(7)
|
Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets.
|
(8)
|
TCE ratio is a non-GAAP measure calculated based on TCE divided by tangible assets.
|
(9)
|
The adjustments in 2019 consist of:
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Year Ended
|
||||||
(Dollars in millions)
|
|
December 31, 2019
|
|
September 30, 2019
|
|
December 31, 2019
|
||||||
Initial allowance build on acquired Walmart portfolio
|
|
$
|
84
|
|
|
—
|
|
|
$
|
84
|
|
|
Walmart launch and related integration expenses
|
|
48
|
|
|
$
|
163
|
|
|
211
|
|
||
Cybersecurity Incident expenses, net of insurance
|
|
16
|
|
|
22
|
|
|
38
|
|
|||
U.K. Payment Protection Insurance customer refund reserve build (“U.K. PPI Reserve”)
|
|
—
|
|
|
212
|
|
|
212
|
|
|||
Restructuring charges
|
|
—
|
|
|
28
|
|
|
28
|
|
|||
Total
|
|
148
|
|
|
425
|
|
|
573
|
|
|||
Income tax provision
|
|
35
|
|
|
46
|
|
|
81
|
|
|||
Net income
|
|
$
|
113
|
|
|
$
|
379
|
|
|
$
|
492
|
|
(10)
|
The adjustments in 2018 consist of:
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Year Ended
|
||||||
(Dollars in millions)
|
|
December 31, 2018
|
|
September 30, 2018
|
|
December 31, 2018
|
||||||
Net gains on the sales of exited businesses
|
|
$
|
(74
|
)
|
|
$
|
(541
|
)
|
|
$
|
(615
|
)
|
Benefit as a result of tax methodology change on rewards costs
|
|
(284
|
)
|
|
—
|
|
|
(284
|
)
|
|||
Legal reserve build
|
|
—
|
|
|
170
|
|
|
170
|
|
|||
U.K. Payment Protection Insurance customer refund reserve (“U.K. PPI Reserve”)
|
|
50
|
|
|
49
|
|
|
99
|
|
|||
Restructuring charges
|
|
—
|
|
|
34
|
|
|
34
|
|
|||
Total
|
|
(308
|
)
|
|
(288
|
)
|
|
(596
|
)
|
|||
Income tax provision
|
|
18
|
|
|
121
|
|
|
139
|
|
|||
Net income
|
|
$
|
(290
|
)
|
|
$
|
(167
|
)
|
|
$
|
(457
|
)
|
(11)
|
Dividends and undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total.
|
(12)
|
Includes impact of related deferred taxes.
|