Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-13300 | |
Entity Registrant Name | CAPITAL ONE FINANCIAL CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 54-1719854 | |
Entity Address, Address Line One | 1680 Capital One Drive, | |
Entity Address, City or Town | McLean, | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22102 | |
City Area Code | 703 | |
Local Phone Number | 720-1000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 381,922,067 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000927628 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock (par value $.01 per share) | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock (par value $.01 per share) | |
Trading Symbol | COF | |
Security Exchange Name | NYSE | |
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series I | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series I | |
Trading Symbol | COF PRI | |
Security Exchange Name | NYSE | |
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series J | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series J | |
Trading Symbol | COF PRJ | |
Security Exchange Name | NYSE | |
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series K | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series K | |
Trading Symbol | COF PRK | |
Security Exchange Name | NYSE | |
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series L | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series L | |
Trading Symbol | COF PRL | |
Security Exchange Name | NYSE | |
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series N | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series N | |
Trading Symbol | COF PRN | |
Security Exchange Name | NYSE | |
0.800% Senior Notes Due 2024 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.800% Senior Notes Due 2024 | |
Trading Symbol | COF24 | |
Security Exchange Name | NYSE | |
1.650% Senior Notes Due 2029 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.650% Senior Notes Due 2029 | |
Trading Symbol | COF29 | |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest income: | ||
Loans, including loans held for sale | $ 9,920 | $ 8,723 |
Investment securities | 687 | 615 |
Other | 570 | 416 |
Total interest income | 11,177 | 9,754 |
Interest expense: | ||
Deposits | 2,812 | 1,856 |
Securitized debt obligations | 261 | 211 |
Senior and subordinated notes | 606 | 489 |
Other borrowings | 10 | 12 |
Total interest expense | 3,689 | 2,568 |
Net interest income | 7,488 | 7,186 |
Change in estimated partner reimbursements that decreased provision for credit losses | 2,683 | 2,795 |
Net interest income after provision for credit losses | 4,805 | 4,391 |
Non-interest income: | ||
Interchange fees, net | 1,145 | 1,139 |
Service charges and other customer-related fees | 462 | 379 |
Other | 307 | 199 |
Total non-interest income (loss) | 1,914 | 1,717 |
Non-interest expense: | ||
Salaries and associate benefits | 2,478 | 2,427 |
Occupancy and equipment | 554 | 508 |
Marketing | 1,010 | 897 |
Professional services | 262 | 324 |
Communications and data processing | 351 | 350 |
Amortization of intangibles | 19 | 14 |
Other | 463 | 425 |
Total non-interest expense | 5,137 | 4,945 |
Income from continuing operations before income taxes | 1,582 | 1,163 |
Income tax provision | 302 | 203 |
Net income | 1,280 | 960 |
Dividends and undistributed earnings allocated to participating securities | (23) | (16) |
Preferred stock dividends | (57) | (57) |
Net income available to common stockholders | $ 1,200 | $ 887 |
Basic earnings per common share: | ||
Net income per basic common share (in dollars per share) | $ 3.14 | $ 2.32 |
Diluted earnings per common share: | ||
Net income per diluted common share (in dollars per share) | $ 3.13 | $ 2.31 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,280 | $ 960 |
Other comprehensive income (loss), net of tax: | ||
Net unrealized gains (losses) on securities available for sale | (844) | 962 |
Net unrealized gains (losses) on hedging relationships | (410) | 401 |
Foreign currency translation adjustments | (13) | 13 |
Other | 1 | 0 |
Other comprehensive income (loss), net of tax | (1,266) | 1,376 |
Comprehensive income (loss) | $ 14 | $ 2,336 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 4,671 | $ 4,903 |
Interest-bearing deposits and other short-term investments | 46,357 | 38,394 |
Total cash and cash equivalents | 51,028 | 43,297 |
Restricted cash for securitization investors | 474 | 458 |
Securities available for sale (amortized cost of $88.5 billion and $88.1 billion as of March 31, 2024 and December 31, 2023, respectively, and allowance for credit losses of $4 million as of both March 31, 2024 and December 31, 2023) | 78,398 | 79,117 |
Loans held for investment: | ||
Total loans held for investment | 315,154 | 320,472 |
Allowance for credit losses | (15,380) | (15,296) |
Net loans held for investment | 299,774 | 305,176 |
Loans held for sale ($1.2 billion and $347 million carried at fair value as of March 31, 2024 and December 31, 2023, respectively) | 1,631 | 854 |
Premises and equipment, net | 4,366 | 4,375 |
Interest receivable | 2,514 | 2,478 |
Goodwill | 15,062 | 15,065 |
Other assets | 28,473 | 27,644 |
Total assets | 481,720 | 478,464 |
Liabilities: | ||
Interest payable | 762 | 649 |
Deposits: | ||
Non-interest-bearing deposits | 27,617 | 28,024 |
Interest-bearing deposits | 323,352 | 320,389 |
Total deposits | 350,969 | 348,413 |
Securitized debt obligations | 17,661 | 18,043 |
Other debt: | ||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 568 | 538 |
Senior and subordinated notes | 32,108 | 31,248 |
Other borrowings | 24 | 27 |
Total other debt | 32,700 | 31,813 |
Other liabilities | 21,827 | 21,457 |
Total liabilities | 423,919 | 420,375 |
Commitments, contingencies and guarantees (see Note 14) | ||
Stockholders’ equity: | ||
Preferred stock (par value $0.01 per share; 50,000,000 shares authorized; 4,975,000 shares issued and outstanding as of both March 31, 2024 and December 31, 2023) | 0 | 0 |
Common stock (par value $0.01 per share; 1,000,000,000 shares authorized; 699,753,620 and 696,242,668 shares issued as of March 31, 2024 and December 31, 2023, respectively; 382,063,343 and 380,389,609 shares outstanding as of March 31, 2024 and December 31, 2023, respectively) | 7 | 7 |
Additional paid-in capital, net | 35,808 | 35,541 |
Retained earnings | 61,905 | 60,945 |
Accumulated other comprehensive loss | (9,534) | (8,268) |
Treasury stock, at cost (par value $0.01 per share; 317,690,277 and 315,853,059 shares as of March 31, 2024 and December 31, 2023, respectively) | (30,385) | (30,136) |
Total stockholders’ equity | 57,801 | 58,089 |
Total liabilities and stockholders’ equity | 481,720 | 478,464 |
Unsecuritized loans held for investment | ||
Loans held for investment: | ||
Total loans held for investment | 285,577 | 289,229 |
Loans held in consolidated trusts | ||
Loans held for investment: | ||
Total loans held for investment | 29,577 | 31,243 |
Total assets | 32,051 | 33,288 |
Other debt: | ||
Total liabilities | $ 18,380 | $ 18,746 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Securities available for sale, amortized cost | $ 88,459 | $ 88,063 |
Allowance for credit losses | 4 | 4 |
Loans held for sale | $ 1,200 | $ 347 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 4,975,000 | 4,975,000 |
Preferred stock, shares outstanding (in shares) | 4,975,000 | 4,975,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 699,753,620 | 696,242,668 |
Common stock, shares outstanding (in shares) | 382,063,343 | 380,389,609 |
Treasury stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Treasury stock, shares (in shares) | 317,690,277 | 315,853,059 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Cumulative effects of accounting standards adoption | $ 52,582 | $ 48 | [1] | $ 0 | $ 7 | $ 34,725 | $ 57,184 | $ 48 | [1] | $ (9,916) | $ (29,418) | |
Beginning balance (shares) at Dec. 31, 2022 | 4,975,000 | 690,334,422 | ||||||||||
Beginning balance at Dec. 31, 2022 | 52,582 | 48 | [1] | $ 0 | $ 7 | 34,725 | 57,184 | 48 | [1] | (9,916) | (29,418) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Comprehensive income (loss) | 2,336 | 960 | 1,376 | |||||||||
Dividends—common stock (shares) | [2] | 26,635 | ||||||||||
Dividends—common stock | [2] | (234) | $ 0 | 3 | (237) | |||||||
Dividends—preferred stock | (57) | (57) | ||||||||||
Purchases of treasury stock | (246) | (246) | ||||||||||
Issuances of common stock and restricted stock, net of forfeitures (shares) | 2,972,149 | |||||||||||
Issuances of common stock and restricted stock, net of forfeitures | 76 | $ 0 | 76 | |||||||||
Compensation expense for restricted stock units | 148 | 148 | ||||||||||
Ending balance (shares) at Mar. 31, 2023 | 4,975,000 | 693,333,206 | ||||||||||
Ending balance at Mar. 31, 2023 | 54,653 | $ 0 | $ 7 | 34,952 | 57,898 | (8,540) | (29,664) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Cumulative effects of accounting standards adoption | 54,653 | 0 | 7 | 34,952 | 57,898 | (8,540) | (29,664) | |||||
Cumulative effects of accounting standards adoption | 58,089 | (25) | [3] | $ 0 | $ 7 | 35,541 | 60,945 | (25) | [3] | (8,268) | (30,136) | |
Beginning balance (shares) at Dec. 31, 2023 | 4,975,000 | 696,242,668 | ||||||||||
Beginning balance at Dec. 31, 2023 | 58,089 | $ (25) | [3] | $ 0 | $ 7 | 35,541 | 60,945 | $ (25) | [3] | (8,268) | (30,136) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Comprehensive income (loss) | 14 | 1,280 | (1,266) | |||||||||
Dividends—common stock (shares) | [2] | 24,969 | ||||||||||
Dividends—common stock | [2] | (235) | $ 0 | 3 | (238) | |||||||
Dividends—preferred stock | (57) | (57) | ||||||||||
Purchases of treasury stock | (249) | (249) | ||||||||||
Issuances of common stock and restricted stock, net of forfeitures (shares) | 3,470,983 | |||||||||||
Issuances of common stock and restricted stock, net of forfeitures | 80 | $ 0 | 80 | |||||||||
Exercises of stock options (shares) | 15,000 | |||||||||||
Exercises of stock options | 1 | $ 0 | 1 | |||||||||
Compensation expense for restricted stock units | 183 | 183 | ||||||||||
Ending balance (shares) at Mar. 31, 2024 | 4,975,000 | 699,753,620 | ||||||||||
Ending balance at Mar. 31, 2024 | 57,801 | $ 0 | $ 7 | 35,808 | 61,905 | (9,534) | (30,385) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Cumulative effects of accounting standards adoption | $ 57,801 | $ 0 | $ 7 | $ 35,808 | $ 61,905 | $ (9,534) | $ (30,385) | |||||
[1] Impact from the adoption of ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDR”) and Vintage Disclosures as of January 1, 2023. We declared dividends per share on our common stock of $0.60 in both the first quarters of 2024 and 2023. Impact from the adoption of Accounting Standards Update (“ASU”) 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method as of January 1, 2024. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividend per share on common stock declared (in dollars per share) | $ 0.60 | $ 0.60 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating activities: | ||
Income (loss) from continuing operations, net of tax | $ 1,280 | $ 960 |
Net income | 1,280 | 960 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||
Provision for credit losses | 2,683 | 2,795 |
Depreciation and amortization, net | 806 | 1,251 |
Deferred tax provision (benefit) | 116 | (169) |
Loss (gain) on sales of loans | 13 | (5) |
Stock-based compensation expense | 193 | 154 |
Other | 31 | 14 |
Loans held for sale: | ||
Originations and purchases | (1,477) | (1,237) |
Proceeds from sales and paydowns | 610 | 1,064 |
Changes in operating assets and liabilities: | ||
Changes in interest receivable | (36) | (131) |
Changes in other assets | (670) | 398 |
Changes in interest payable | 113 | 94 |
Changes in other liabilities | (652) | (2,196) |
Net cash from operating activities | 3,010 | 2,992 |
Securities available for sale: | ||
Purchases | (2,732) | (5,843) |
Proceeds from paydowns and maturities | 2,397 | 1,990 |
Loans: | ||
Net changes in loans originated as held for investment | 1,906 | 3,396 |
Principal recoveries of loans previously charged off | 657 | 546 |
Changes in premises and equipment | (247) | (235) |
Net cash used in acquisition activities | 0 | (2,539) |
Net cash used in other investing activities | (306) | (309) |
Net cash used in investing activities | 1,675 | (2,994) |
Financing activities: | ||
Changes in deposits | 2,620 | 16,648 |
Issuance of securitized debt obligations | 0 | 1,248 |
Maturities and paydowns of securitized debt obligations | (367) | (560) |
Issuance of senior and subordinated notes and long-term FHLB advances | 1,992 | 2,241 |
Maturities and paydowns of senior and subordinated notes and long-term FHLB advances | (750) | (3,047) |
Changes in other borrowings | 27 | (350) |
Common stock: | ||
Net proceeds from issuances | 80 | 76 |
Dividends paid | (235) | (234) |
Preferred stock: | ||
Dividends paid | (57) | (57) |
Purchases of treasury stock | (249) | (246) |
Proceeds from share-based payment activities | 1 | 0 |
Net cash from financing activities | 3,062 | 15,719 |
Changes in cash, cash equivalents and restricted cash for securitization investors | 7,747 | 15,717 |
Cash, cash equivalents and restricted cash for securitization investors, beginning of the period | 43,755 | 31,256 |
Cash, cash equivalents and restricted cash for securitization investors, end of the period | 51,502 | 46,973 |
Supplemental cash flow information: | ||
Interest paid | 3,108 | 2,084 |
Income tax paid | $ 47 | $ 103 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company Capital One Financial Corporation, a Delaware corporation established in 1994 and headquartered in McLean, Virginia, is a diversified financial services holding company with banking and non-banking subsidiaries. Capital One Financial Corporation and its subsidiaries (the “Company” or “Capital One”) offer a broad array of financial products and services to consumers, small businesses and commercial clients through digital channels, branch locations, cafés and other distribution channels. As of March 31, 2024, Capital One Financial Corporation’s principal operating subsidiary was Capital One, National Association (“CONA”). The Company is hereafter collectively referred to as “we,” “us” or “our.” CONA is referred to as the “Bank.” We also offer products outside of the United States of America (“U.S.”) principally through Capital One (Europe) plc (“COEP”), an indirect subsidiary of CONA organized and located in the United Kingdom (“U.K.”), and through a branch of CONA in Canada. Both COEP and our Canadian branch of CONA have the authority to provide credit card loans. Our principal operations are organized for management reporting purposes into three major business segments, which are defined primarily based on the products and services provided or the types of customer served: Credit Card, Consumer Banking and Commercial Banking. We provide details on our business segments, the integration of recent acquisitions, if any, into our business segments and the allocation methodologies and accounting policies used to derive our business segment results in “Note 13—Business Segments and Revenue from Contracts with Customers.” Basis of Presentation and Use of Estimates The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”). The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the related disclosures. These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgments, actual amounts or results could differ from these estimates. In the opinion of management, all normal, recurring adjustments have been included for a fair statement of this interim financial information. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements, and related notes thereto, included in Capital One Financial Corporation’s 2023 Annual Report on Form 10-K (“2023 Form 10-K”). Newly Adopted Accounting Standards During the Three Months Ended March 31, 2024 Standard Guidance Adoption Timing and Financial Statement Impacts Tax Credit Investments ASU No. 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023 Permits entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method, if certain criteria are met. Previously, only Low-Income Housing Tax Credit investments were eligible for application of the proportional amortization method. We adopted this standard on its effective date of January 1, 2024 using a modified retrospective transition method, which results in a cumulative-effect adjustment to retained earnings in the period of adoption. Our adoption of this standard did not have a material impact on our consolidated financial statements See “Consolidated Statements of Changes in Stockholders’ Equity” and “Note 6—Variable Interest Entities and Securitizations” for additional disclosures. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | NOTE 2—BUSINESS COMBINATIONS On February 19, 2024, the Company entered into an agreement and plan of merger (the “Merger Agreement”), by and among Capital One, Discover Financial Services, a Delaware corporation (“Discover”) and Vega Merger Sub, Inc., a Delaware corporation and a direct, wholly owned subsidiary of the Company (“Merger Sub”), pursuant to which (a) Merger Sub will merge with and into Discover, with Discover as the surviving entity in the merger (the “Merger”); (b) immediately following the Merger, Discover, as the surviving entity, will merge with and into Capital One, with Capital One as the surviving entity in the second-step merger (the “Second Step Merger”); and (c) immediately following the Second Step Merger, Discover Bank, a Delaware-chartered and wholly owned subsidiary of Discover, will merge with and into CONA, with CONA as the surviving entity in the merger (the “CONA Bank Merger,” and collectively with the Merger and the Second Step Merger, the “Transaction”). The Merger Agreement was unanimously approved by the Boards of Directors of each of Capital One and Discover. At the effective time of the Merger, each share of common stock of Discover outstanding immediately prior to the effective time of the Merger, other than certain shares held by Discover or Capital One, will be converted into the right to receive 1.0192 shares of common stock of Capital One. Holders of Discover common stock will receive cash in lieu of fractional shares. At the effective time of the Second Step Merger, each share of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C, of Discover, and each share of 6.125% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series D, of Discover, in each case outstanding immediately prior to the effective time of the Second Step Merger, will be converted into the right to receive a share of newly created series of preferred stock of Capital One having terms that are not materially less favorable than the applicable series of Discover preferred stock. The closing of the Transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals and approval by the stockholders of each of Capital One and Discover. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | NOTE 3—INVESTMENT SECURITIES Our investment securities portfolio consists of the following: U.S. government-sponsored enterprise or agency (“GSE” or “Agency”) and non-agency residential mortgage-backed securities (“RMBS”), agency commercial mortgage-backed securities (“CMBS”), U.S. Treasury securities and other securities. Agency securities include Government National Mortgage Association (“Ginnie Mae”) guaranteed securities, Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”) issued securities. The carrying value of our investments in Agency and U.S. Treasury securities represented 96% and 97% of our total investment securities portfolio as of March 31, 2024 and December 31, 2023, respectively. The table below presents the amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair value aggregated by major security type as of March 31, 2024 and December 31, 2023. Accrued interest receivable of $248 million and $227 million as of March 31, 2024 and December 31, 2023, respectively, is not included in the table below. Table 3.1: Investment Securities Available for Sale March 31, 2024 (Dollars in millions) Amortized Allowance Gross Gross Fair Investment securities available for sale: U.S. Treasury securities $ 5,764 $ 0 $ 3 $ (39) $ 5,728 RMBS: Agency 71,153 0 74 (9,506) 61,721 Non-agency 600 (4) 86 (5) 677 Total RMBS 71,753 (4) 160 (9,511) 62,398 Agency CMBS 8,867 0 19 (693) 8,193 Other securities (1) 2,075 0 4 0 2,079 Total investment securities available for sale $ 88,459 $ (4) $ 186 $ (10,243) $ 78,398 December 31, 2023 (Dollars in millions) Amortized Allowance Gross Gross Fair Investment securities available for sale: U.S. Treasury securities $ 5,330 $ 0 $ 1 $ (49) $ 5,282 RMBS: Agency 71,294 0 104 (8,450) 62,948 Non-agency 610 (4) 89 (5) 690 Total RMBS 71,904 (4) 193 (8,455) 63,638 Agency CMBS 8,961 0 14 (652) 8,323 Other securities (1) 1,868 0 6 0 1,874 Total investment securities available for sale $ 88,063 $ (4) $ 214 $ (9,156) $ 79,117 __________ (1) Includes $1.6 billion and $1.4 billion of asset-backed securities (“ABS”) as of March 31, 2024 and December 31, 2023, respectively. The remaining amount is primarily comprised of supranational bonds, foreign government bonds and U.S. agency debt bonds. Investment Securities in a Gross Unrealized Loss Position The table below provides the gross unrealized losses and fair value of our securities available for sale aggregated by major security type and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2024 and December 31, 2023. The amounts include securities available for sale without an allowance for credit losses. Table 3.2: Securities in a Gross Unrealized Loss Position March 31, 2024 Less than 12 Months 12 Months or Longer Total (Dollars in millions) Fair Value Gross Fair Value Gross Fair Value Gross Investment securities available for sale without an allowance for credit losses: U.S. Treasury securities $ 443 $ (1) $ 2,099 $ (38) $ 2,542 $ (39) RMBS: Agency 3,213 (36) 53,912 (9,470) 57,125 (9,506) Non-agency 5 0 14 (1) 19 (1) Total RMBS 3,218 (36) 53,926 (9,471) 57,144 (9,507) Agency CMBS 544 (5) 6,509 (688) 7,053 (693) Other securities 398 0 99 0 497 0 Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses (1) $ 4,603 $ (42) $ 62,633 $ (10,197) $ 67,236 $ (10,239) December 31, 2023 Less than 12 Months 12 Months or Longer Total (Dollars in millions) Fair Value Gross Fair Value Gross Fair Value Gross Investment securities available for sale without an allowance for credit losses: U.S. Treasury securities $ 733 $ 0 $ 2,242 $ (49) $ 2,975 $ (49) RMBS: Agency 3,511 (43) 53,987 (8,407) 57,498 (8,450) Non-agency 1 0 13 (1) 14 (1) Total RMBS 3,512 (43) 54,000 (8,408) 57,512 (8,451) Agency CMBS 547 (7) 6,465 (645) 7,012 (652) Other securities 276 0 4 0 280 0 Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses (1) $ 5,068 $ (50) $ 62,711 $ (9,102) $ 67,779 $ (9,152) __________ (1) Consists of approxima tely 2,770 and 2,740 se cur ities in gross unrealized loss positions as of March 31, 2024 and December 31, 2023, respectively. Maturities and Yields of Investment Securities The table below summarizes, as of March 31, 2024, the fair value of our investment securities by major security type and contractual maturity as well as the total fair value, amortized cost and weighted-average yields of our investment securities by contractual maturity. Since borrowers may have the right to call or prepay certain obligations, the expected maturities of our securities are likely to differ from the scheduled contractual maturities presented below. The weighted-average yield below represents the effective yield for the investment securities and is calculated based on the amortized cost of each security. Table 3.3: Contractual Maturities and Weighted-Average Yields of Securities March 31, 2024 (Dollars in millions) Due in Due > 1 Year Due > 5 Years Due > 10 Years Total Fair value of securities available for sale: U.S. Treasury securities $ 1,892 $ 3,542 $ 294 $ 0 $ 5,728 RMBS (1) : Agency 2 92 1,073 60,554 61,721 Non-agency 0 0 5 672 677 Total RMBS 2 92 1,078 61,226 62,398 Agency CMBS (1) 494 2,482 3,221 1,996 8,193 Other securities 373 1,682 24 0 2,079 Total securities available for sale $ 2,761 $ 7,798 $ 4,617 $ 63,222 $ 78,398 Amortized cost of securities available for sale $ 2,788 $ 7,986 $ 5,013 $ 72,672 $ 88,459 Weighted-average yield for securities available for sale 3.50% 4.43% 3.52% 3.10% 3.26% __________ (1) As of March 31, 2024, the weighted-average expected maturities of RMBS and Agency CMBS were 7.8 years and 4.4 years, respectively. Net Securities Gains or Losses and Proceeds from Sales We had no sales of securities for both the three months ended March 31, 2024 and 2023. Securities Pledged and Received We pledged investment securities totaling $40.7 billion and $45.1 billion as of March 31, 2024 and December 31, 2023, respectively. These securities are primarily pledged to support our access to FHLB advances and Public Fund Deposits, as well as for other purposes as required or permitted by law. We accepted pledges of securities with a fair value of approximately $13 million and $16 million as of March 31, 2024 and December 31, 2023, respectively, related to our derivative transactions. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Loans | NOTE 4—LOANS Our loan portfolio consists of loans held for investment, including loans held in our consolidated trusts, and loans held for sale. We further divide our loans held for investment into three portfolio segments: Credit Card, Consumer Banking and Commercial Banking. Credit card loans consist of domestic and international credit card loans. Consumer banking loans consist of auto and retail banking loans. Commercial banking loans consist of commercial and multifamily real estate as well as commercial and industrial loans. The information presented in the tables in this note excludes loans held for sale, which are carried at either fair value (if we elect the fair value option) or at the lower of cost or fair value. Accrued interest receivable of $2.2 billion as of both March 31, 2024 and December 31, 2023, is not included in the tables in this note. The table below presents the composition and aging analysis of our loans held for investment portfolio as of March 31, 2024 and December 31, 2023. The delinquency aging includes all past due loans, both performing and nonperforming. Table 4.1: Loan Portfolio Composition and Aging Analysis March 31, 2024 Delinquent Loans (Dollars in millions) Current 30-59 60-89 > 90 Days Total Total Credit Card: Domestic credit card $ 137,416 $ 1,735 $ 1,371 $ 3,339 $ 6,445 $ 143,861 International card businesses 6,401 113 75 144 332 6,733 Total credit card 143,817 1,848 1,446 3,483 6,777 150,594 Consumer Banking: Auto 69,431 2,769 1,244 357 4,370 73,801 Retail banking 1,269 11 3 15 29 1,298 Total consumer banking 70,700 2,780 1,247 372 4,399 75,099 Commercial Banking: Commercial and multifamily real estate 34,050 0 94 128 222 34,272 Commercial and industrial 55,019 3 29 138 170 55,189 Total commercial banking 89,069 3 123 266 392 89,461 Total loans (1) $ 303,586 $ 4,631 $ 2,816 $ 4,121 $ 11,568 $ 315,154 % of Total loans 96.33% 1.47% 0.89% 1.31% 3.67% 100.00% December 31, 2023 Delinquent Loans (Dollars in millions) Current 30-59 60-89 > 90 Days Total Total Credit Card: Domestic credit card $ 140,860 $ 1,968 $ 1,471 $ 3,367 $ 6,806 $ 147,666 International card businesses 6,552 116 76 137 329 6,881 Total credit card 147,412 2,084 1,547 3,504 7,135 154,547 Consumer Banking: Auto 68,768 3,268 1,555 484 5,307 74,075 Retail banking 1,329 15 3 15 33 1,362 Total consumer banking 70,097 3,283 1,558 499 5,340 75,437 December 31, 2023 Delinquent Loans (Dollars in millions) Current 30-59 60-89 > 90 Days Total Total Commercial Banking: Commercial and multifamily real estate 34,325 0 14 107 121 34,446 Commercial and industrial 55,861 0 0 181 181 56,042 Total commercial banking 90,186 0 14 288 302 90,488 Total loans (1) $ 307,695 $ 5,367 $ 3,119 $ 4,291 $ 12,777 $ 320,472 % of Total loans 96.01% 1.68% 0.97% 1.34% 3.99% 100.00% __________ (1) The following table presents our loans held for investment that are 90 days or more past due that continue to accrue interest, loans that are classified as nonperforming and loans that are classified as nonperforming without an allowance as of March 31, 2024 and December 31, 2023. Nonperforming loans generally include loans that have been placed on nonaccrual status. Table 4.2: 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans March 31, 2024 December 31, 2023 (Dollars in millions) > 90 Days and Accruing Nonperforming Loans (1) Nonperforming > 90 Days and Accruing Nonperforming Loans (1) Nonperforming Credit Card: Domestic credit card $ 3,339 N/A $ 0 $ 3,367 N/A $ 0 International card businesses 140 $ 9 0 132 $ 9 0 Total credit card 3,479 9 0 3,499 9 0 Consumer Banking: Auto 0 585 0 0 712 0 Retail banking 0 41 21 0 46 19 Total consumer banking 0 626 21 0 758 19 Commercial Banking: Commercial and multifamily real estate 5 541 369 0 425 335 Commercial and industrial 18 607 347 55 336 193 Total commercial banking 23 1,148 716 55 761 528 Total $ 3,502 $ 1,783 $ 737 $ 3,554 $ 1,528 $ 547 % of Total loans held for investment 1.11 % 0.57 % 0.23 % 1.11 % 0.48 % 0.17 % __________ (1) We recognized interest income for loans classified as nonperforming of $5 million and $2 million for the three months ended March 31, 2024 and 2023, Credit Quality Indicators We closely monitor economic conditions and loan performance trends to assess and manage our exposure to credit risk. We discuss these risks and our credit quality indicator for each portfolio segment below. Credit Card Our credit card loan portfolio is highly diversified across millions of accounts and numerous geographies without significant individual exposure. We therefore generally manage credit risk based on portfolios with common risk characteristics. The risk in our credit card loan portfolio correlates to broad economic trends, such as the U.S. unemployment rate and U.S. Real Gross Domestic Product (“GDP”) growth rate, as well as consumers’ financial condition, all of which can have a material effect on credit performance. The key indicator we assess in monitoring the credit quality and risk of our credit card loan portfolio is delinquency trends, including an analysis of loan migration between delinquency categories over time. The table below presents our credit card portfolio by delinquency status as of March 31, 2024 and December 31, 2023. Table 4.3: Credit Card Delinquency Status March 31, 2024 December 31, 2023 (Dollars in millions) Revolving Loans Revolving Loans Converted to Term Total Revolving Loans Revolving Loans Converted to Term Total Credit Card: Domestic credit card: Current $ 137,043 $ 373 $ 137,416 $ 140,521 $ 339 $ 140,860 30-59 days 1,709 26 1,735 1,940 28 1,968 60-89 days 1,352 19 1,371 1,454 17 1,471 Greater than 90 days 3,313 26 3,339 3,339 28 3,367 Total domestic credit card 143,417 444 143,861 147,254 412 147,666 International card businesses: Current 6,368 33 6,401 6,521 31 6,552 30-59 days 108 5 113 112 4 116 60-89 days 71 4 75 72 4 76 Greater than 90 days 139 5 144 132 5 137 Total international card businesses 6,686 47 6,733 6,837 44 6,881 Total credit card $ 150,103 $ 491 $ 150,594 $ 154,091 $ 456 $ 154,547 Consumer Banking Our consumer banking loan portfolio consists of auto and retail banking loans. Similar to our credit card loan portfolio, the risk in our consumer banking loan portfolio correlates to broad economic trends as well as consumers’ financial condition, all of which can have a material effect on credit performance. The key indicator we consider when assessing the credit quality and risk of our auto loan portfolio is borrower credit scores as they measure the creditworthiness of borrowers. Delinquency trends are the key indicator we assess in monitoring the credit quality and risk of our retail banking loan portfolio. The table below presents our consumer banking portfolio of loans held for investment by credit quality indicator as of March 31, 2024 and December 31, 2023. We present our auto loan portfolio by Fair Isaac Corporation (“FICO”) scores at origination and our retail banking loan portfolio by delinquency status, which includes all past due loans, both performing and nonperforming. Table 4.4: Consumer Banking Portfolio by Vintage Year March 31, 2024 Term Loans by Vintage Year (Dollars in millions) 2024 2023 2022 2021 2020 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total Auto — At origination FICO scores: (1) Greater than 660 $ 4,180 $ 11,141 $ 11,433 $ 8,457 $ 2,654 $ 1,132 $ 38,997 $ 0 $ 0 $ 38,997 621-660 1,367 4,526 4,030 2,974 1,148 600 14,645 0 0 14,645 620 or below 1,865 6,228 5,036 3,807 2,024 1,199 20,159 0 0 20,159 Total auto 7,412 21,895 20,499 15,238 5,826 2,931 73,801 0 0 73,801 Retail banking—Delinquency status: Current 69 77 92 56 62 554 910 355 4 1,269 30-59 days 0 0 0 1 0 2 3 8 0 11 60-89 days 0 0 0 0 0 1 1 2 0 3 Greater than 90 days 0 0 0 0 1 7 8 5 2 15 Total retail banking 69 77 92 57 63 564 922 370 6 1,298 Total consumer banking $ 7,481 $ 21,972 $ 20,591 $ 15,295 $ 5,889 $ 3,495 $ 74,723 $ 370 $ 6 $ 75,099 December 31, 2023 Term Loans by Vintage Year (Dollars in millions) 2023 2022 2021 2020 2019 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total Auto — At origination FICO scores: (1) Greater than 660 $ 12,219 $ 12,593 $ 9,505 $ 3,124 $ 1,213 $ 309 $ 38,963 $ 0 $ 0 $ 38,963 621-660 4,863 4,432 3,346 1,337 592 192 14,762 0 0 14,762 620 or below 6,647 5,539 4,283 2,349 1,131 401 20,350 0 0 20,350 Total auto 23,729 22,564 17,134 6,810 2,936 902 74,075 0 0 74,075 Retail banking—Delinquency status: Current 98 157 57 65 117 468 962 363 4 1,329 30-59 days 1 0 1 1 0 1 4 11 0 15 60-89 days 0 0 0 0 0 1 1 2 0 3 Greater than 90 days 0 0 0 0 0 8 8 6 1 15 Total retail banking 99 157 58 66 117 478 975 382 5 1,362 Total consumer banking $ 23,828 $ 22,721 $ 17,192 $ 6,876 $ 3,053 $ 1,380 $ 75,050 $ 382 $ 5 $ 75,437 __________ (1) Amounts 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. Commercial Banking The key credit quality indicator for our commercial loan portfolios is our internal risk ratings. We assign internal risk ratings to loans based on relevant information about the ability of the borrowers to repay their debt. In determining the risk rating of a particular loan, some of the factors considered are the borrower’s current financial condition, historical and projected future credit performance, prospects for support from financially responsible guarantors, the estimated realizable value of any collateral and current economic trends. The scale based on our internal risk rating system is as follows: • Noncriticized: Loans that have not been designated as criticized, frequently referred to as “pass” loans. • Criticized performing: Loans in which the financial condition of the obligor is stressed, affecting earnings, cash flows or collateral values. The borrower currently has adequate capacity to meet near-term obligations; however, the stress, left unabated, may result in deterioration of the repayment prospects at some future date. • Criticized nonperforming: Loans that are not adequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Loans classified as criticized nonperforming have a well-defined weakness, or weaknesses, which jeopardize the full repayment of the debt. These loans are characterized by the distinct possibility that we will sustain a credit loss if the deficiencies are not corrected and are generally placed on nonaccrual status. We use our internal risk rating system for regulatory reporting, determining the frequency of credit exposure reviews, and evaluating and determining the allowance for credit losses. Generally, loans that are designated as criticized performing and criticized nonperforming are reviewed quarterly by management to determine if they are appropriately classified/rated and whether any impairment exists. Noncriticized loans are also generally reviewed, at least annually, to determine the appropriate risk rating. In addition, we evaluate the risk rating during the renewal process of any loan or if a loan becomes past due. The following table presents our commercial banking portfolio of loans held for investment by internal risk ratings as of March 31, 2024 and December 31, 2023. The internal risk rating status includes all past due loans, both performing and nonperforming. Table 4.5: Commercial Banking Portfolio by Internal Risk Ratings March 31, 2024 Term Loans by Vintage Year (Dollars in millions) 2024 2023 2022 2021 2020 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total Internal risk rating: (1) Commercial and multifamily real estate Noncriticized $ 646 $ 2,794 $ 4,392 $ 2,573 $ 994 $ 5,280 $ 16,679 $ 13,046 $ 25 $ 29,750 Criticized performing 53 59 1,501 685 220 1,331 3,849 130 2 3,981 Criticized nonperforming 12 60 45 118 0 299 534 7 0 541 Total commercial and multifamily real estate 711 2,913 5,938 3,376 1,214 6,910 21,062 13,183 27 34,272 Commercial and industrial Noncriticized 1,037 6,784 11,627 6,701 3,341 7,339 36,829 14,096 129 51,054 Criticized performing 42 328 638 672 126 437 2,243 1,284 1 3,528 Criticized nonperforming 0 12 96 41 178 221 548 59 0 607 Total commercial and industrial 1,079 7,124 12,361 7,414 3,645 7,997 39,620 15,439 130 55,189 Total commercial banking $ 1,790 $ 10,037 $ 18,299 $ 10,790 $ 4,859 $ 14,907 $ 60,682 $ 28,622 $ 157 $ 89,461 December 31, 2023 Term Loans by Vintage Year (Dollars in millions) 2023 2022 2021 2020 2019 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total Internal risk rating: (1) Commercial and multifamily real estate Noncriticized $ 3,068 $ 4,665 $ 2,773 $ 1,019 $ 2,104 $ 3,670 $ 17,299 $ 12,565 $ 25 $ 29,889 Criticized performing 148 1,494 706 284 463 904 3,999 133 0 4,132 Criticized nonperforming 65 26 124 0 47 163 425 0 0 425 Total commercial and multifamily real estate 3,281 6,185 3,603 1,303 2,614 4,737 21,723 12,698 25 34,446 Commercial and industrial Noncriticized 6,909 11,935 6,994 3,566 2,359 5,117 36,880 14,822 167 51,869 Criticized performing 353 706 655 237 348 349 2,648 1,189 0 3,837 Criticized nonperforming 13 53 30 18 123 68 305 31 0 336 Total commercial and industrial 7,275 12,694 7,679 3,821 2,830 5,534 39,833 16,042 167 56,042 Total commercial banking $ 10,556 $ 18,879 $ 11,282 $ 5,124 $ 5,444 $ 10,271 $ 61,556 $ 28,740 $ 192 $ 90,488 __________ (1) Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities. Financial Difficulty Modifications to Borrowers As part of our loss mitigation efforts, we may provide short-term (one to twelve months) or long-term (greater than twelve months) modifications to a borrower experiencing financial difficulty to improve long-term collectability of the loan and to avoid the need for repossession or foreclosure of collateral. We consider the impact of all loan modifications when estimating the credit quality of our loan portfolio and establishing allowance levels. For our Commercial Banking customers, loan modifications are also considered in the assignment of an internal risk rating. For additional information on Financial Difficulty Modifications (“FDMs”), see “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K. The following tables present the major modification types, amortized cost amounts for each modification type and financial effects for all FDMs undertaken during the three months ended March 31, 2024 and 2023. Table 4.6: Financial Difficulty Modifications to Borrowers Three Months Ended March 31, 2024 Credit Card Consumer Banking Commercial Banking (Dollars in millions) Domestic Card International Card Businesses Total Credit Card Auto Retail Banking Total Consumer Banking Commercial and Multifamily Real Estate Commercial and Industrial Total Commercial Banking Total Interest rate reduction $ 216 $ 54 $ 270 — — — — — — $ 270 Term extension — — — $ 6 $ 2 $ 8 $ 316 $ 135 $ 451 459 Principal balance reduction — — — 9 — 9 — — — 9 Interest rate reduction and term extension 5 — 5 274 — 274 28 — 28 307 Other (1) — — — 1 — 1 91 46 137 138 Total loans modified $ 221 $ 54 $ 275 $ 290 $ 2 $ 292 $ 435 $ 181 $ 616 $ 1,183 % of total class of receivables 0.15 % 0.80 % 0.18 % 0.39 % 0.14 % 0.39 % 1.27 % 0.33 % 0.69 % 0.38 % Three Months Ended March 31, 2023 Credit Card Consumer Banking Commercial Banking (Dollars in millions) Domestic Card International Card Businesses Total Credit Card Auto Retail Banking Total Consumer Banking Commercial and Multifamily Real Estate Commercial and Industrial Total Commercial Banking Total Interest rate reduction $ 150 $ 38 $ 188 — — — — — — $ 188 Term extension — — — $ 42 $ 3 $ 45 $ 129 $ 66 $ 195 240 Principal balance reduction — — — 7 — 7 — — — 7 Principal balance reduction and term extension — — — — — — — 17 17 17 Interest rate reduction and term extension — — — 202 — 202 — — — 202 Other (1) — — — 1 — 1 — 132 132 133 Total loans modified $ 150 $ 38 $ 188 $ 252 $ 3 $ 255 $ 129 $ 215 $ 344 $ 787 % of total class of receivables 0.11 % 0.62 % 0.14 % 0.33 % 0.18 % 0.33 % 0.35 % 0.38 % 0.37 % 0.25 % __________ (1) Primarily consists of modifications or combinations of modifications not categorized above, such as increases in committed exposure, forbearances and other types of modifications in Commercial Banking. Table 4.7: Financial Effects of Financial Difficulty Modifications to Borrowers Three Months Ended March 31, 2024 Credit Card Consumer Banking Commercial Banking Domestic Card International Card Businesses Auto Retail Banking Commercial and Multifamily Real Estate Commercial and Industrial Weighted-average interest rate reduction 19.99% 26.12% 8.65% —% 0.79% —% Payment delay duration (in months) 12 — 6 10 6 12 Principal balance reduction — — — — — $15 Three Months Ended March 31, 2023 Credit Card Consumer Banking Commercial Banking Domestic Card International Card Businesses Auto Retail Banking Commercial and Multifamily Real Estate Commercial and Industrial Weighted-average interest rate reduction 19.02% 25.74% 8.75% —% —% —% Payment delay duration (in months) — — 6 14 8 7 Principal balance reduction — — — — — $3 Performance of Financial Difficulty Modifications to Borrowers We monitor loan performance trends, including FDMs, to assess and manage our exposure to credit risk. See “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K for additional information on how the allowance for modified loans is calculated for each portfolio segment. FDMs are accumulated and the performance of each loan that received an FDM is reported on a rolling twelve month basis. For the interim reporting period ended March 31, 2024, the delinquency status as of this date is shown in the table below for FDMs entered into over the preceding 12 month period. For the interim reporting period ended March 31, 2023, the delinquency status as of this date is shown in the table below for FDMs entered into during the first three months of 2023. Table 4.8 Delinquency Status of Loan Modifications to Borrowers Experiencing Financial Difficulty (1) March 31, 2024 Delinquent Loans (Dollars in millions) Current 30-59 Days 60-89 Days > 90 Days Total Delinquent Loans Total Loans Credit Card: Domestic credit card $ 407 $ 67 $ 56 $ 116 $ 239 $ 646 International card businesses 53 10 10 33 53 106 Total credit card 460 77 66 149 292 752 Consumer Banking: Auto 626 93 54 19 166 792 Retail banking 9 0 1 0 1 10 Total consumer banking 635 93 55 19 167 802 Commercial Banking: Commercial and multifamily real estate 556 0 0 22 22 578 Commercial and industrial 842 0 27 31 58 900 Total commercial banking 1,398 0 27 53 80 1,478 Total $ 2,493 $ 170 $ 148 $ 221 $ 539 $ 3,032 March 31, 2023 Delinquent Loans (Dollars in millions) Current 30-59 Days 60-89 Days > 90 Days Total Delinquent Loans Total Loans Credit Card: Domestic credit card $ 62 $ 36 $ 23 $ 29 $ 88 $ 150 International card businesses 11 5 4 18 27 38 Total credit card 73 41 27 47 115 188 Consumer Banking: Auto 224 18 7 3 28 252 Retail banking 2 0 0 1 1 3 Total consumer banking 226 18 7 4 29 255 Commercial Banking: Commercial and multifamily real estate 99 30 0 0 30 129 Commercial and industrial 129 0 0 86 86 215 Total commercial banking 228 30 0 86 116 344 Total $ 527 $ 89 $ 34 $ 137 $ 260 $ 787 __________ (1) Commitments to lend additional funds on FDMs totaled $190 million and $26 million as of March 31, 2024 and 2023, respectively. Subsequent Defaults of Financial Difficulty Modifications to Borrowers FDMs may subsequently enter default. A default occurs if a FDM is either 90 days or more delinquent, has been charged off, or has been reclassified from accrual to nonaccrual status. Loans that entered a modification program in any stage of delinquency are included in the aging table above. Loans that entered a modification program while in default are not considered to have subsequently defaulted for purposes of this disclosure. The allowance for any FDMs that have subsequently defaulted is measured using the same methodology as the allowance for loans held for investment. See “Part II—Item 8.—Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K for additional information. The following table presents FDMs that entered subsequent default for the three months ended March 31, 2024. FDMs that entered default subsequent to their modification were insignificant during the three months ended March 31, 2023. Table 4.9 Subsequent Defaults of Financial Difficulty Modifications to Borrowers Three Months Ended March 31, 2024 (Dollars in millions) Interest Rate Reduction Term Extension Interest Rate Reduction and Term Extension Total Loans Credit Card: Domestic credit card $ 74 $ 0 $ 1 $ 75 International card businesses 17 0 0 17 Total credit card 91 0 1 92 Consumer Banking: Auto 0 3 103 106 Total consumer banking 0 3 103 106 Commercial Banking: Commercial and multifamily real estate 0 0 0 0 Commercial and industrial 0 67 0 67 Total commercial banking 0 67 0 67 Total $ 91 $ 70 $ 104 $ 265 Loans Pledged We pledged loan collateral of $7.4 billion as of both March 31, 2024 and December 31, 2023 and also to secure a portion of our FHLB borrowing capacity of $36.7 billion and $32.1 billion as of March 31, 2024 and December 31, 2023, respectively. We also pledged loan collateral of $74.1 billion and $78.3 billion to secure our Federal Reserve Discount Window borrowing capacity of $38.8 billion and $41.4 billion as of March 31, 2024 and December 31, 2023, respectively. In addition to loans pledged, we have securitized a portion of our credit card and auto loan portfolios. See “Note 6—Variable Interest Entities and Securitizations” for additional information. Revolving Loans Converted to Term Loans For the three months ended March 31, 2024 and 2023, we converted $116 million and $183 million of revolving loans to term loans, respectively, primarily in our domestic credit card and commercial banking loan portfolios. |
Allowance for Credit Losses and
Allowance for Credit Losses and Reserve for Unfunded Lending Commitments | 3 Months Ended |
Mar. 31, 2024 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance for Credit Losses and Reserve for Unfunded Lending Commitments | NOTE 5—ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR UNFUNDED LENDING COMMITMENTS Our allowance for credit losses represents management’s current estimate of expected credit losses over the contractual terms of our loans held for investment as of each balance sheet date. Expected recoveries of amounts previously charged off or expected to be charged off are recognized within the allowance. Significant judgment is applied in our estimation of lifetime credit losses. When developing an estimate of expected credit losses, we use both quantitative and qualitative methods in considering all available information relevant to assessing collectability. This may include internal information, external information, or a combination of both relating to past events, current conditions and reasonable and supportable forecasts. Our estimate of expected credit losses includes a reasonable and supportable forecast period of one year and then reverts over a one-year period to historical losses at each relevant loss component of the estimate. Management will consider and may qualitatively adjust for conditions, changes and trends in loan portfolios that may not be captured in modeled results. These adjustments are referred to as qualitative factors and represent management’s judgment of the imprecision and risks inherent in the processes and assumptions used in establishing the allowance for credit losses. We have unfunded lending commitments in our Commercial Banking business that are not unconditionally cancellable by us and for which we estimate expected credit losses in establishing a reserve. This reserve is measured using the same measurement objectives as the allowance for loans held for investment. We build or release the reserve for unfunded lending commitments through the provision for credit losses in our consolidated statements of income, and the related reserve for unfunded lending commitments is included in other liabilities on our consolidated balance sheets. See “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K for further discussion of the methodology and policies for determining our allowance for credit losses for each of our loan portfolio segments, as well as information on our reserve for unfunded lending commitments. Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity The table below summarizes changes in the allowance for credit losses and reserve for unfunded lending commitments by portfolio segment for the three months ended March 31, 2024 and 2023. Our allowance for credit losses increased by $84 million to $15.4 billion as of March 31, 2024 from December 31, 2023 . Table 5.1: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity Three Months Ended March 31, 2024 (Dollars in millions) Credit Card Consumer Banking Commercial Banking Total Allowance for credit losses: Balance as of December 31, 2023 $ 11,709 $ 2,042 $ 1,545 $ 15,296 Charge-offs (2,574) (660) (39) (3,273) Recoveries (1) 367 280 10 657 Net charge-offs (2,207) (380) (29) (2,616) Provision for credit losses 2,259 426 22 2,707 Allowance build (release) for credit losses 52 46 (7) 91 Other changes (2) (7) 0 0 (7) Balance as of March 31, 2024 11,754 2,088 1,538 15,380 Reserve for unfunded lending commitments: Balance as of December 31, 2023 0 0 158 158 Provision (benefit) for losses on unfunded lending commitments 0 0 (24) (24) Balance as of March 31, 2024 0 0 134 134 Combined allowance and reserve as of March 31, 2024 $ 11,754 $ 2,088 $ 1,672 $ 15,514 Three Months Ended March 31, 2023 (Dollars in millions) Credit Card Consumer Banking Commercial Banking Total Allowance for credit losses: Balance as of December 31, 2022 $ 9,545 $ 2,237 $ 1,458 $ 13,240 Cumulative effects of accounting standards adoption (3) (63) 0 0 (63) Balance as of January 1, 2023 9,482 2,237 1,458 13,177 Charge-offs (1,688) (531) (24) (2,243) Recoveries (1) 319 224 3 546 Net charge-offs (1,369) (307) (21) (1,697) Provision for credit losses 2,261 275 266 2,802 Allowance build (release) for credit losses 892 (32) 245 1,105 Other changes (4) 36 0 0 36 Balance as of March 31, 2023 10,410 2,205 1,703 14,318 Reserve for unfunded lending commitments: Balance as of December 31, 2022 0 0 218 218 Provision (benefit) for losses on unfunded lending commitments 0 0 (7) (7) Balance as of March 31, 2023 0 0 211 211 Combined allowance and reserve as of March 31, 2023 $ 10,410 $ 2,205 $ 1,914 $ 14,529 ________ (1) The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications, repossession of collateral, the periodic sale of charged off loans as well as additional strategies, such as litigation. (2) Primarily represents foreign currency translation adjustments. (3) Impact from the adoption of ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDR”) and Vintage Disclosures as of January 1, 2023. (4) Primarily represents the initial allowance for purchased credit-deteriorated (“PCD”) loans. The initial allowance of PCD loans was $32 million for the three months ended March 31, 2023. We charge off loans when we determine that the loan is uncollectible. The amortized cost basis, excluding accrued interest, is charged off as a reduction to the allowance for credit losses in accordance with our accounting policies. For more information, see “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K. Expected recoveries of amounts previously charged off or expected to be charged off are recognized within the allowance, with a corresponding reduction to our provision for credit losses. The table below presents gross charge-offs for loans held for investment by vintage year during the three months ended March 31, 2024. Table 5.2: Gross Charge-Offs by Vintage Year Three Months Ended March 31, 2024 Term Loans by Vintage Year (Dollars in millions) 2024 2023 2022 2021 2020 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total Credit Card Domestic credit card N/A N/A N/A N/A N/A N/A N/A $ 2,422 $ 30 $ 2,452 International card business N/A N/A N/A N/A N/A N/A N/A 119 3 122 Total credit card N/A N/A N/A N/A N/A N/A N/A 2,541 33 2,574 Consumer Banking Auto $ 4 $ 138 $ 218 $ 163 $ 68 $ 51 $ 642 0 0 642 Retail banking 0 0 0 0 0 0 0 18 0 18 Total consumer banking 4 138 218 163 68 51 642 18 0 660 Commercial Banking Commercial and multifamily real estate 0 0 0 0 0 27 27 0 0 27 Commercial and industrial 0 0 0 4 8 0 12 0 0 12 Total commercial banking 0 0 0 4 8 27 39 0 0 39 Total $ 4 $ 138 $ 218 $ 167 $ 76 $ 78 $ 681 $ 2,559 $ 33 $ 3,273 Credit Card Partnership Loss Sharing Arrangements We have certain credit card partnership agreements that are presented within our consolidated financial statements on a net basis, in which our partner agrees to share a portion of the credit losses on the underlying loan portfolio. The expected reimbursements from these partners are netted against our allowance for credit losses. Our methodology for estimating reimbursements is consistent with the methodology we use to estimate the allowance for credit losses on our credit card loan receivables. These expected reimbursements result in reductions in net charge-offs and the provision for credit losses. See “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2023 Form 10-K for further discussion of our credit card partnership agreements. The table below summarizes the changes in the estimated reimbursements from these partners for the three months ended March 31, 2024 and 2023. Table 5.3: Summary of Credit Card Partnership Loss Sharing Arrangements Impacts Three Months Ended March 31, (Dollars in millions) 2024 2023 Estimated reimbursements from partners, beginning of period $ 2,014 $ 1,558 Amounts due from partners for charged off loans (324) (201) Change in estimated partner reimbursements that decreased provision for credit losses 385 484 Estimated reimbursements from partners, end of period $ 2,075 $ 1,841 |
Variable Interest Entities and
Variable Interest Entities and Securitizations | 3 Months Ended |
Mar. 31, 2024 | |
Variable Interest Entities and Securitization [Abstract] | |
Variable Interest Entities and Securitizations | NOTE 6—VARIABLE INTEREST ENTITIES AND SECURITIZATIONS In the normal course of business, we enter into various types of transactions with entities that are considered to be variable interest entities (“VIEs”). Our primary involvement with VIEs is related to our securitization transactions in which we transfer assets to securitization trusts. We primarily securitize credit card and auto loans, which provide a source of funding for us and enable us to transfer a certain portion of the economic risk of the loans or related debt securities to third parties. The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and is required to consolidate the VIE. The majority of the VIEs in which we are involved have been consolidated in our financial statements. Summary of Consolidated and Unconsolidated VIEs The assets of our consolidated VIEs primarily consist of cash, loan receivables and the related allowance for credit losses, which we report on our consolidated balance sheets under restricted cash for securitization investors, loans held in consolidated trusts and allowance for credit losses, respectively. The assets of a particular VIE are the primary source of funds to settle its obligations. Creditors of these VIEs typically do not have recourse to our general credit. Liabilities primarily consist of debt securities issued by the VIEs, which we report under securitized debt obligations on our consolidated balance sheets. For unconsolidated VIEs, we present the carrying amount of assets and liabilities reflected on our consolidated balance sheets and our maximum exposure to loss. Our maximum exposure to loss is estimated based on the unlikely event that all of the assets in the VIEs become worthless and we are required to meet the maximum amount of any remaining funding obligations. The tables below present a summary of VIEs in which we had continuing involvement or held a significant variable interest, aggregated based on VIEs with similar characteristics as of March 31, 2024 and December 31, 2023. We separately present information for consolidated and unconsolidated VIEs. Table 6.1: Carrying Amount of Consolidated and Unconsolidated VIEs March 31, 2024 Consolidated Unconsolidated (Dollars in millions) Carrying Amount of Assets Carrying Amount of Liabilities Carrying Amount of Assets Carrying Amount of Liabilities Maximum Exposure to Loss Securitization-Related VIEs: (1) Credit card loan securitizations (2) $ 24,393 $ 14,692 $ 0 $ 0 $ 0 Auto loan securitizations 4,491 3,655 0 0 0 Total securitization-related VIEs 28,884 18,347 0 0 0 Other VIEs: (3) Affordable housing entities 295 23 5,650 2,001 5,650 Entities that provide capital to low-income and rural communities 2,872 10 0 0 0 Other (4) 0 0 411 0 411 Total other VIEs 3,167 33 6,061 2,001 6,061 Total VIEs $ 32,051 $ 18,380 $ 6,061 $ 2,001 $ 6,061 December 31, 2023 Consolidated Unconsolidated (Dollars in millions) Carrying Amount of Assets Carrying Amount of Liabilities Carrying Amount of Assets Carrying Amount of Liabilities Maximum Exposure to Loss Securitization-Related VIEs: (1) Credit card loan securitizations (2) $ 25,474 $ 14,692 $ 0 $ 0 $ 0 Auto loan securitizations 5,019 4,021 0 0 0 Total securitization-related VIEs 30,493 18,713 0 0 0 Other VIEs: (3) Affordable housing entities 297 23 5,726 2,085 5,726 Entities that provide capital to low-income and rural communities 2,498 10 0 0 0 Other (4) 0 0 449 0 449 Total other VIEs 2,795 33 6,175 2,085 6,175 Total VIEs $ 33,288 $ 18,746 $ 6,175 $ 2,085 $ 6,175 __________ (1) Excludes insignificant VIEs from previously exited businesses. (2) Represents the carrying amount of assets and liabilities of the VIE, which includes the seller’s interest and repurchased notes held by other related parties. (3) In certain investment structures, we consolidate a VIE which in turn holds as its primary asset an investment in an unconsolidated VIE. In these instances, we disclose the carrying amount of assets and liabilities on our consolidated balance sheets as unconsolidated VIEs to avoid duplicating our exposure, as the unconsolidated VIEs are generally the operating entities generating the exposure. The carrying amount of assets and liabilities included in the unconsolidated VIE columns above related to these investment structures were $2.6 billion of assets and $984 million of liabilities as of March 31, 2024, and $2.6 billion of assets and $989 million of liabilities as of December 31, 2023. (4) Primarily consists of variable interests in companies that promote renewable energy sources and other equity method investments. Securitization-Related VIEs In a securitization transaction, assets are transferred to a trust, which generally meets the definition of a VIE. We engage in securitization activities as an issuer and an investor. Our primary securitization issuance activity includes credit card and auto securitizations, conducted through securitization trusts which we consolidate. Our continuing involvement in these securitization transactions mainly consists of acting as the primary servicer and holding certain retained interests. In our multifamily agency business, we originate multifamily commercial real estate loans and transfer them to government-sponsored enterprises (“GSEs”) who may, in turn, securitize them. We retain the related mortgage servicing rights (“MSRs”) and service the transferred loans pursuant to the guidelines set forth by the GSEs. As an investor, we hold primarily RMBS, CMBS, and ABS in our investment securities portfolio, which represent variable interests in the respective securitization trusts from which those securities were issued. We do not consolidate the securitization trusts employed in these transactions as we do not have the power to direct the activities that most significantly impact the economic performance of these securitization trusts. We exclude these VIEs from the tables within this note because we do not consider our continuing involvement with these VIEs to be significant as we either solely invest in securities issued by the VIE and were not involved in the design of the VIE or no transfers have occurred between the VIE and ourselves. Our maximum exposure to loss as a result of our involvement with these VIEs is the carrying value of the MSRs and investment securities on our consolidated balance sheets as well as our contractual obligations under loss sharing arrangements. See “Note 14—Commitments, Contingencies, Guarantees and Others” for information about the loss sharing agreements, “Note 7—Goodwill and Other Intangible Assets” for information related to our MSRs associated with these securitizations and “Note 3—Investment Securities” for more information on the securities held in our investment securities portfolio. In addition, where we have certain lending arrangements in the normal course of business with entities that could be VIEs, we have also excluded these VIEs from the tables presented in this note. See “Note 4—Loans” for additional information regarding our lending arrangements in the normal course of business. The table below presents our continuing involvement in certain securitization-related VIEs as of March 31, 2024 and December 31, 2023. Table 6.2: Continuing Involvement in Securitization-Related VIEs (Dollars in millions) Credit Card Auto March 31, 2024: Securities held by third-party investors $ 14,013 $ 3,648 Receivables in the trusts 25,273 4,304 Cash balance of spread or reserve accounts 0 19 Retained interests Yes Yes Servicing retained Yes Yes December 31, 2023: Securities held by third-party investors $ 14,029 $ 4,014 Receivables in the trusts 26,404 4,839 Cash balance of spread or reserve accounts 0 19 Retained interests Yes Yes Servicing retained Yes Yes Credit Card Securitizations We securitize a portion of our credit card loans which provides a source of funding for us. Credit card securitizations involve the transfer of credit card receivables to securitization trusts. These trusts then issue debt securities collateralized by the transferred receivables to third-party investors. We hold certain retained interests in our credit card securitizations and continue to service the receivables in these trusts. We consolidate these trusts because we are deemed to be the primary beneficiary as we have the power to direct the activities that most significantly impact the economic performance of the trusts, and the right to receive benefits or the obligation to absorb losses that could potentially be significant to the trusts. Auto Securitizations Similar to our credit card securitizations, we securitize a portion of our auto loans which provides a source of funding for us. Auto securitizations involve the transfer of auto loans to securitization trusts. These trusts then issue debt securities collateralized by the transferred loans to third-party investors. We hold certain retained interests and continue to service the loans in these trusts. We consolidate these trusts because we are deemed to be the primary beneficiary as we have the power to direct the activities that most significantly impact the economic performance of the trusts, and the right to receive benefits or the obligation to absorb losses that could potentially be significant to the trusts. Other VIEs Affordable Housing Entities As part of our community reinvestment initiatives, we invest in private investment funds that make equity investments in multifamily affordable housing properties, a majority of which are VIEs. We receive affordable housing tax credits for these investments. The activities of these entities are financed with a combination of invested equity capital and debt. We account for our investments in qualified affordable housing projects using the proportional amortization method, where costs of the investment are amortized over the period in which the investor expects to receive tax credits and other tax benefits, and the resulting amortization is recognized as a component of income tax expense attributable to continuing operations. For the three months ended March 31, 2024 and 2023, we recognized amortization of $178 million and $170 million, respectively, and tax credits of $184 million and $177 million, respectively, associated with these investments within income tax provision. The carrying value of our equity investments in these qualified affordable housing projects was $5.3 billion and $5.5 billion as of March 31, 2024 and December 31, 2023, respectively. We are periodically required to provide additional financial or other support during the period of the investments. Our liability for these unfunded commitments was $2.2 billion and $2.3 billion as of March 31, 2024 and December 31, 2023, respectively, and is largely expected to be paid from 2024 to 2027. For those investment funds considered to be VIEs, we are not required to consolidate them if we do not have the power to direct the activities that most significantly impact the economic performance of those entities. We record our interests in these unconsolidated VIEs in loans held for investment, other assets and other liabilities on our consolidated balance sheets. Our maximum exposure to these entities is limited to our variable interests in the entities which consisted of assets of approximately $5.6 billion and $5.7 billion as of March 31, 2024 and December 31, 2023, respectively. The creditors of the VIEs have no recourse to our general credit and we do not provide additional financial or other support other than during the period that we are contractually required to provide it. The total assets of the unconsolidated VIE investment funds were approximately $18.8 billion and $18.6 billion as of March 31, 2024 and December 31, 2023, respectively. Entities that Provide Capital to Low-Income and Rural Communities We hold variable interests in entities (“Investor Entities”) that invest in community development entities (“CDEs”) that provide debt financing to businesses and non-profit entities in low-income and rural communities. Variable interests in the CDEs held by the consolidated Investor Entities are also our variable interests. The activities of the Investor Entities are financed with a combination of invested equity capital and debt. The activities of the CDEs are financed solely with invested equity capital. We receive federal and state tax credits for these investments. We consolidate the VIEs in which we have the power to direct the activities that most significantly impact the VIE’s economic performance and where we have the obligation to absorb losses or right to receive benefits that could be potentially significant to the VIE. We consolidate other investments and CDEs that are not considered to be VIEs, but where we hold a controlling financial interest. The assets of the VIEs that we consolidated, which totaled approximately $2.9 billion and $2.5 billion as of March 31, 2024 and December 31, 2023, respectively, are reflected on our consolidated balance sheets in cash, loans held for investment, and other assets. The liabilities are reflected in other liabilities. The creditors of the VIEs have no recourse to our general credit. We have not provided additional financial or other support other than during the period that we are contractually required to provide it. Other We hold variable interests in other VIEs, including companies that promote renewable energy sources and other equity method investments. We are not required to consolidate these VIEs because we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to these VIEs is limited to the investments on our consolidated balance sheets of $411 million and $449 million as of March 31, 2024 and December 31, 2023, respectively. The creditors of the other VIEs have no recourse to our general credit. We have not provided additional financial or other support other than during the period that we are contractually required to provide it. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 7—GOODWILL AND OTHER INTANGIBLE ASSETS The table below presents our goodwill, other intangible assets and MSRs as of March 31, 2024 and December 31, 2023. Goodwill is presented separately, while other intangible assets and MSRs are included in other assets on our consolidated balance sheets. Table 7.1: Components of Goodwill, Other Intangible Assets and MSRs March 31, 2024 (Dollars in millions) Carrying Amount of Assets Accumulated Amortization Net Carrying Amount Goodwill $ 15,062 N/A $ 15,062 Other intangible assets: Purchased credit card relationship (“PCCR”) intangibles 369 $ (113) 256 Other (1) 134 (100) 34 Total other intangible assets 503 (213) 290 Total goodwill and other intangible assets $ 15,565 $ (213) $ 15,352 Commercial MSRs (2) $ 654 $ (277) $ 377 December 31, 2023 (Dollars in millions) Carrying Amount of Assets Accumulated Amortization Net Carrying Amount Goodwill $ 15,065 N/A $ 15,065 Other intangible assets: Purchased credit card relationship (“PCCR”) intangibles 369 $ (96) 273 Other (1) 171 (134) 37 Total other intangible assets 540 (230) 310 Total goodwill and other intangible assets $ 15,605 $ (230) $ 15,375 Commercial MSRs (2) $ 653 $ (263) $ 390 __________ (1) Primarily consists of intangibles for sponsorship, customer and merchant relationships, domain names and licenses. (2) Commercial MSRs are accounted for under the amortization method on our consolidated balance sheets. Amortization expense for amortizable intangible assets, which is presented separately in our consolidated statements of income, totaled $19 million and $14 million for the three months ended March 31, 2024 and 2023, respectively. Goodwill The following table presents changes in the carrying amount of goodwill by each of our business segments as of March 31, 2024 and December 31, 2023. Table 7.2: Goodwill by Business Segments (Dollars in millions) Credit Card Consumer Banking Commercial Banking Total Balance as of December 31, 2023 $ 5,366 $ 4,645 $ 5,054 $ 15,065 Other adjustments (1) (3) 0 0 (3) Balance as of March 31, 2024 $ 5,363 $ 4,645 $ 5,054 $ 15,062 __________ (1) Primarily represents foreign currency translation adjustments. |
Deposits and Borrowings
Deposits and Borrowings | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Deposits and Borrowings | NOTE 8—DEPOSITS AND BORROWINGS Our deposits, which include checking accounts, money market deposits, negotiable order of withdrawals, savings deposits and time deposits, represent our largest source of funding for our assets and operations. We also use a variety of other funding sources including short-term borrowings, senior and subordinated notes, securitized debt obligations and other borrowings. Securitized debt obligations are presented separately on our consolidated balance sheets, as they represent obligations of consolidated securitization trusts, while federal funds purchased and securities loaned or sold under agreements to repurchase, senior and subordinated notes and other borrowings, including FHLB advances, are included in other debt on our consolidated balance sheets. Our total short-term borrowings generally consist of federal funds purchased, securities loaned or sold under agreements to repurchase and FHLB advances. Our long-term debt consists of borrowings with an original contractual maturity of greater than one year. The following tables summarize the components of our deposits, short-term borrowings and long-term debt as of March 31, 2024 and December 31, 2023. The carrying value presented below for these borrowings includes any unamortized debt premiums and discounts, net of debt issuance costs and fair value hedge accounting adjustments. Table 8.1: Components of Deposits, Short-Term Borrowings and Long-Term Debt (Dollars in millions) March 31, 2024 December 31, 2023 Deposits: Non-interest-bearing deposits $ 27,617 $ 28,024 Interest-bearing deposits (1) 323,352 320,389 Total deposits $ 350,969 $ 348,413 Short-term borrowings: Federal funds purchased and securities loaned or sold under agreements to repurchase $ 568 $ 538 Total short-term borrowings $ 568 $ 538 March 31, 2024 December 31, 2023 (Dollars in millions) Maturity Dates Stated Interest Rates Weighted-Average Interest Rate Carrying Value Carrying Value Long-term debt: Securitized debt obligations 2024-2028 0.55% - 6.13% 3.00% $ 17,661 $ 18,043 Senior and subordinated notes: Fixed unsecured senior debt (2) 2024-2035 0.80 - 7.62 4.57 28,063 27,168 Floating unsecured senior debt 2025 6.68 6.68 349 349 Total unsecured senior debt 4.60 28,412 27,517 Fixed unsecured subordinated debt 2025-2032 2.36 - 4.20 3.57 3,696 3,731 Total senior and subordinated notes 32,108 31,248 Other long-term borrowings 2024-2031 0.49 - 9.91 6.64 24 27 Total long-term debt $ 49,793 $ 49,318 Total short-term borrowings and long-term debt $ 50,361 $ 49,856 __________ (1) Some customers have time deposits in excess of the federal deposit insurance limit, making a portion of the deposit uninsured. As of March 31, 2024, the total time deposit amount with some portion in excess of the insured amount was $13.1 billion and the portion of total time deposits estimated to be uninsured was $8.4 billion . As of December 31, 2023, the total time deposit amount with some portion in excess of the insured amount was $15.8 billion and the portion of total time deposits estimated to be uninsured was $9.0 billion. (2) Includes $1.3 billion of Euro (“EUR”) denominated unsecured notes as of both March 31, 2024 and December 31, 2023. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | NOTE 9—DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Use of Derivatives and Accounting for Derivatives We regularly enter into derivative transactions to support our overall risk management activities. Our primary market risks stem from the impact on our earnings and economic value of equity due to changes in interest rates and, to a lesser extent, changes in foreign exchange rates. We manage our interest rate sensitivity by employing several techniques, which include changing the duration and re-pricing characteristics of various assets and liabilities by using interest rate derivatives. We also use foreign currency derivatives to limit our earnings and capital exposures to foreign exchange risk by hedging certain exposures denominated in foreign currencies. We primarily use interest rate and foreign currency swaps to perform these hedging activities, but we may also use a variety of other derivative instruments, including caps, floors, options, futures and forward contracts, to manage our interest rate and foreign exchange risks. We designate these risk management derivatives as either qualifying accounting hedges or free-standing derivatives. Qualifying accounting hedges are further designated as fair value hedges, cash flow hedges or net investment hedges. Free-standing derivatives are economic hedges that do not qualify for hedge accounting. We also offer interest rate, commodity, foreign currency derivatives and other contracts as an accommodation to our customers within our Commercial Banking business. We enter into these derivatives with our customers primarily to help them manage their interest rate risks, hedge their energy and other commodities exposures, and manage foreign currency fluctuations. We offset the substantial majority of the market risk exposure of our customer accommodation derivatives through derivative transactions with other counterparties. See below for additional information on our use of derivatives and how we account for them: • Fair Value Hedges: We designate derivatives as fair value hedges when they are used to manage our exposure to changes in the fair value of certain financial assets and liabilities, which fluctuate in value as a result of movements in interest rates. Changes in the fair value of derivatives designated as fair value hedges are presented in the same line item in our consolidated statements of income as the earnings effect of the hedged items. We enter into receive-fixed, pay-float interest rate swaps to hedge changes in the fair value of outstanding fixed rate debt and deposits due to fluctuations in market interest rates. We also enter into pay-fixed, receive-float interest rate swaps to hedge changes in the fair value of fixed rate investment securities. • Cash Flow Hedges: We designate derivatives as cash flow hedges when they are used to manage our exposure to variability in cash flows related to forecasted transactions. Changes in the fair value of derivatives designated as cash flow hedges are recorded as a component of accumulated other comprehensive income (“AOCI”). Those amounts are reclassified into earnings in the same period during which the hedged forecasted transactions impact earnings and presented in the same line item in our consolidated statements of income as the earnings effect of the hedged items. We enter into receive-fixed, pay-float interest rate swaps and interest rate floors to modify the interest rate characteristics of designated credit card and commercial loans from floating to fixed in order to reduce the impact of changes in forecasted future cash flows due to fluctuations in market interest rates. We also enter into foreign currency forward contracts to hedge our exposure to variability in cash flows related to intercompany borrowings denominated in foreign currencies. • Net Investment Hedges: We use net investment hedges to manage the foreign currency exposure related to our net investments in foreign operations that have functional currencies other than the U.S. dollar. Changes in the fair value of net investment hedges are recorded in the translation adjustment component of AOCI, offsetting the translation gain or loss from those foreign operations. We execute net investment hedges using foreign currency forward contracts to hedge the translation exposure of the net investment in our foreign operations under the forward method. • Free-Standing Derivatives: Our free-standing derivatives primarily consist of our customer accommodation derivatives and other economic hedges. The customer accommodation derivatives and the related offsetting contracts are mainly interest rate, commodity and foreign currency contracts. The other free-standing derivatives are primarily used to economically hedge the risk of changes in the fair value of our commercial mortgage loan origination and purchase commitments as well as other interests held. Changes in the fair value of free-standing derivatives are recorded in earnings as a component of other non-interest income. Derivatives Counterparty Credit Risk Counterparty Types Derivative instruments contain an element of credit risk that stems from the potential failure of a counterparty to perform according to the terms of the contract, including making payments due upon maturity of certain derivative instruments. We execute our derivative contracts primarily in “over-the-counter” (“OTC”) markets. We also execute interest rate and commodity futures in the exchange-traded derivative markets. Our OTC derivatives consist of both trades cleared through central counterparty clearinghouses (“CCPs”) and uncleared bilateral contracts. The Chicago Mercantile Exchange (“CME”), the Intercontinental Exchange (“ICE”) and the LCH Group (“LCH”) are our CCPs for our centrally cleared contracts. In our uncleared bilateral contracts, we enter into agreements directly with our derivative counterparties. Counterparty Credit Risk Management We manage the counterparty credit risk associated with derivative instruments by entering into legally enforceable master netting agreements, where applicable, and exchanging collateral with our counterparties, typically in the form of cash or high-quality liquid securities. We exchange collateral in two primary forms: variation margin, which mitigates the risk of changes in value due to daily market movements and is exchanged daily, and initial margin, which mitigates the risk of potential future exposure of a derivative and is exchanged at the outset of a transaction and adjusted daily. We exchange variation margin and initial margin on our cleared derivatives. For uncleared bilateral derivatives executed after September 1, 2021 and in scope for initial margin, we exchange variation margin and initial margin. The amount of collateral exchanged for variation margin is dependent upon the fair value of the derivative instruments as well as the fair value of the pledged collateral and will vary over time as market variables change. The amount of the initial margin exchanged is dependent upon 1) the calculation of initial margin exposure, as prescribed by 1(a) the U.S. prudential regulators’ margin rules for uncleared derivatives (“PR Rules”) or 1(b) the CCPs for cleared derivatives and 2) the fair value of the pledged collateral; it will vary over time as market variables change. When valuing collateral, an estimate of the variation in price and liquidity over time is subtracted in the form of a “haircut” to discount the value of the collateral pledged. Our exposure to derivative counterparty credit risk, at any point in time, is equal to the amount reported as a derivative asset on our balance sheet. The fair value of our derivatives is adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and any associated collateral received or pledged. See Table 9.3 for our net exposure associated with derivatives. The terms under which we collateralize our exposures differ between cleared exposures and uncleared bilateral exposures. • CCPs : We clear eligible OTC derivatives with CCPs as part of our regulatory requirements. We also clear exchange-traded instruments, like futures, with CCPs. Futures commission merchants (“FCMs”) serve as the intermediary between CCPs and us. CCPs require that we post initial and variation margin through our FCMs to mitigate the risk of non-payment or default. Initial margin is required by CCPs as collateral against potential losses on our exchange-traded and cleared derivative contracts and variation margin is exchanged on a daily basis to account for mark-to-market changes in those derivative contracts. For CME, ICE and LCH-cleared OTC derivatives, variation margin cash payments are required to be characterized as settlements. Our FCM agreements governing these derivative transactions include provisions that may require us to post additional collateral under certain circumstances. • Bilateral Counterparties : We enter into master netting agreements and collateral agreements with bilateral derivative counterparties, where applicable, to mitigate the risk of default. These bilateral agreements typically provide the right to offset exposure with the same counterparty and require the party in a net liability position to post collateral. Agreements with certain bilateral counterparties require both parties to maintain collateral in the event the fair values of uncleared derivatives exceed established exposure thresholds. Certain of these bilateral agreements include provisions requiring that our debt maintain a credit rating of investment grade or above by each of the major credit rating agencies. In the event of a downgrade of our debt credit rating below investment grade, some of our counterparties would have the right to terminate their derivative contract and close out existing positions. Credit Risk Valuation Adjustments We record counterparty credit valuation adjustments (“CVAs”) on our derivative assets to reflect the credit quality of our counterparties. We consider collateral and legally enforceable master netting agreements that mitigate our credit exposure to each counterparty in determining CVAs, which may be adjusted due to changes in the fair values of the derivative contracts, collateral, and creditworthiness of the counterparty. We also record debit valuation adjustments (“DVAs”) to adjust the fair values of our derivative liabilities to reflect the impact of our own credit quality. Balance Sheet Presentation The following table summarizes the notional amounts and fair values of our derivative instruments as of March 31, 2024 and December 31, 2023, which are segregated by derivatives that are designated as accounting hedges and those that are not, and are further segregated by type of contract within those two categories. The total derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and any associated cash collateral received or pledged. Derivative assets and liabilities are included in other assets and other liabilities, respectively, on our consolidated balance sheets, and their related gains or losses are included in operating activities as changes in other assets and other liabilities in the consolidated statements of cash flows. Table 9.1: Derivative Assets and Liabilities at Fair Value March 31, 2024 December 31, 2023 Notional or Contractual Amount Derivative (1) Notional or Contractual Amount Derivative (1) (Dollars in millions) Assets Liabilities Assets Liabilities Derivatives designated as accounting hedges: Interest rate contracts: Fair value hedges $ 69,607 $ 4 $ 26 $ 68,987 $ 18 $ 26 Cash flow hedges 79,300 134 20 70,350 216 23 Total interest rate contracts 148,907 138 46 139,337 234 49 Foreign exchange contracts: Fair value hedges 1,349 0 135 1,380 0 113 Cash flow hedges 2,431 11 1 2,488 0 66 Net investment hedges 4,814 18 41 4,870 1 89 Total foreign exchange contracts 8,594 29 177 8,738 1 268 Total derivatives designated as accounting hedges 157,501 167 223 148,075 235 317 Derivatives not designated as accounting hedges: Customer accommodation: Interest rate contracts 101,903 1,224 1,474 103,489 1,188 1,382 Commodity contracts 34,638 1,174 1,172 33,495 1,161 1,147 Foreign exchange and other contracts 5,108 43 28 5,153 50 47 Total customer accommodation 141,649 2,441 2,674 142,137 2,399 2,576 Other interest rate exposures (2) 1,878 21 30 872 21 31 Other contracts 3,074 20 7 2,955 20 8 Total derivatives not designated as accounting hedges 146,601 2,482 2,711 145,964 2,440 2,615 Total derivatives $ 304,102 $ 2,649 $ 2,934 $ 294,039 $ 2,675 $ 2,932 Less: netting adjustment (3) (1,050) (440) (1,005) (597) Total derivative assets/liabilities $ 1,599 $ 2,494 $ 1,670 $ 2,335 __________ (1) Does not reflect $1 million and $2 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of March 31, 2024 and December 31, 2023, respectively. Non-performance risk is included in derivative assets and liabilities, which are part of other assets and other liabilities on the consolidated balance sheets, and is offset through non-interest income in the consolidated statements of income. (2) Other interest rate exposures include commercial mortgage-related derivatives and interest rate swaps. (3) Represents balance sheet netting of derivative assets and liabilities, and related payables and receivables for cash collateral held or placed with the same counterparty. The following table summarizes the carrying value of our hedged assets and liabilities in fair value hedges and the associated cumulative basis adjustments included in those carrying values, excluding basis adjustments related to foreign currency risk, as of March 31, 2024 and December 31, 2023. Table 9.2: Hedged Items in Fair Value Hedging Relationships March 31, 2024 December 31, 2023 Carrying Amount Assets/(Liabilities) Cumulative Amount of Basis Adjustments Included in the Carrying Amount Carrying Amount Assets/(Liabilities) Cumulative Amount of Basis Adjustments Included in the Carrying Amount (Dollars in millions) Total Assets/(Liabilities) Discontinued-Hedging Relationships Total Assets/(Liabilities) Discontinued-Hedging Relationships Line item on our consolidated balance sheets in which the hedged item is included: Investment securities available for sale (1)(2) $ 6,022 $ (48) $ 109 $ 6,108 $ (8) $ 126 Interest-bearing deposits (16,991) 348 0 (17,374) 277 0 Securitized debt obligations (13,358) 523 0 (13,375) 503 0 Senior and subordinated notes (31,758) 1,325 (332) (30,899) 971 (372) __________ (1) These amounts include the amortized cost basis of our investment securities designated in hedging relationships for which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. The amortized cost basis of this portfolio was $1.9 billion and $2.2 billion as of March 31, 2024 and December 31, 2023 , respectively. The amount of the designated hedged items was $1.3 billion and $1.5 billion as of March 31, 2024 and December 31, 2023 , respectively. The cumulative basis adjustments associated with these hedges was $10 million and $33 million as of March 31, 2024 and December 31, 2023 , respectively. (2) Carrying value represents amortized cost. Balance Sheet Offsetting of Financial Assets and Liabilities Derivative contracts and repurchase agreements that we execute bilaterally in the OTC market are generally governed by enforceable master netting agreements where we generally have the right to offset exposure with the same counterparty. Either counterparty can generally request to net settle all contracts through a single payment upon default on, or termination of, any one contract. We elect to offset the derivative assets and liabilities under master netting agreements for balance sheet presentation where a right of setoff exists. For derivative contracts entered into under master netting agreements for which we have not been able to confirm the enforceability of the setoff rights, or those not subject to master netting agreements, we do not offset our derivative positions for balance sheet presentation. The following table presents the gross and net fair values of our derivative assets, derivative liabilities, resale and repurchase agreements and the related offsetting amounts permitted under U.S. GAAP as of March 31, 2024 and December 31, 2023. The table also includes cash and non-cash collateral received or pledged in accordance with such arrangements. The amount of collateral presented, however, is limited to the amount of the related net derivative fair values or outstanding balances; therefore, instances of over-collateralization are excluded. Table 9.3: Offsetting of Financial Assets and Financial Liabilities Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts as Recognized Securities Collateral Held Under Master Netting Agreements Net Exposure (Dollars in millions) Financial Instruments Cash Collateral Received As of March 31, 2024 Derivative assets (1) $ 2,649 $ (268) $ (782) $ 1,599 $ (19) $ 1,580 As of December 31, 2023 Derivative assets (1) 2,675 (433) (572) 1,670 (22) 1,648 Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts as Recognized Securities Collateral Pledged Under Master Netting Agreements Net Exposure (Dollars in millions) Financial Instruments Cash Collateral Pledged As of March 31, 2024 Derivative liabilities (1) $ 2,934 $ (268) $ (172) $ 2,494 $ (24) $ 2,470 Repurchase agreements (2) 568 0 0 568 (568) 0 As of December 31, 2023 Derivative liabilities (1) 2,932 (433) (164) 2,335 (13) 2,322 Repurchase agreements (2) 538 0 0 538 (538) 0 __________ (1) We received cash collateral from derivative counterparties totaling $1.1 billion and $858 million as of March 31, 2024 and December 31, 2023 , respectively. We also received securities from derivative counterparties with a fair value of approximately $13 million and $16 million as of March 31, 2024 and December 31, 2023 , respectively, which we have the ability to re-pledge. We posted $1.6 billion and $1.7 billion of cash collateral as of March 31, 2024 and December 31, 2023 , respectively. (2) Under our customer repurchase agreements, which mature the next business day, we pledged collateral with a fair value of $579 million and $549 million as of March 31, 2024 and December 31, 2023 , respectively, primarily consisting of agency RMBS securities. Income Statement and AOCI Presentation Fair Value and Cash Flow Hedges The net gains (losses) recognized in our consolidated statements of income related to derivatives in fair value and cash flow hedging relationships are presented below for the three months ended March 31, 2024 and 2023. Table 9.4: Effects of Fair Value and Cash Flow Hedge Accounting Three Months Ended March 31, 2024 Net Interest Income Non-Interest Income (Dollars in millions) Investment Securities Loans, Including Loans Held for Sale Other Interest-bearing Deposits Securitized Debt Obligations Senior and Subordinated Notes Other Total amounts presented in our consolidated statements of income $ 687 $ 9,920 $ 570 $ (2,812) $ (261) $ (606) $ 307 Fair value hedging relationships: Interest rate and foreign exchange contracts: Interest recognized on derivatives $ 45 $ 0 $ 0 $ (107) $ (118) $ (267) $ 0 Gains (losses) recognized on derivatives 21 0 0 (71) (19) (316) (31) Gains (losses) recognized on hedged items (1) (39) 0 0 71 19 356 31 Excluded component of fair value hedges (2) 0 0 0 0 0 (1) 0 Net income (expense) recognized on fair value hedges $ 27 $ 0 $ 0 $ (107) $ (118) $ (228) $ 0 Cash flow hedging relationships: (3) Interest rate contracts: Realized gains (losses) reclassified from AOCI into net income $ 0 $ (309) $ 0 $ 0 $ 0 $ 0 $ 0 Foreign exchange contracts: Realized gains (losses) reclassified from AOCI into net income (4) 0 0 2 0 0 0 0 Net income (expense) recognized on cash flow hedges $ 0 $ (309) $ 2 $ 0 $ 0 $ 0 $ 0 Three Months Ended March 31, 2023 Net Interest Income Non-Interest Income (Dollars in millions) Investment Securities Loans, Including Loans Held for Sale Other Interest-bearing Deposits Securitized Debt Obligations Senior and Subordinated Notes Other Total amounts presented in our consolidated statements of income $ 615 $ 8,723 $ 416 $ (1,856) $ (211) $ (489) $ 199 Fair value hedging relationships: Interest rate and foreign exchange contracts: Interest recognized on derivatives $ 33 $ 0 $ 0 $ (78) $ (84) $ (220) $ 0 Gains (losses) recognized on derivatives (49) 0 0 178 148 387 17 Gains (losses) recognized on hedged items (1) 31 0 0 (180) (149) (355) (17) Excluded component of fair value hedges (2) 0 0 0 0 0 (1) 0 Net income (expense) recognized on fair value hedges $ 15 $ 0 $ 0 $ (80) $ (85) $ (189) $ 0 Cash flow hedging relationships: (3) Interest rate contracts: Realized gains (losses) reclassified from AOCI into net income $ 0 $ (262) $ 0 $ 0 $ 0 $ 0 $ 0 Foreign exchange contracts: Realized gains (losses) reclassified from AOCI into net income (4) 0 0 3 0 0 0 0 Net income (expense) recognized on cash flow hedges $ 0 $ (262) $ 3 $ 0 $ 0 $ 0 $ 0 _________ (1) Includes amortization benefit of $23 million and $15 million for the three months ended March 31, 2024 and 2023, respectively, related to basis adjustments on discontinued hedges. (2) Changes in fair values of cross-currency swaps attributable to changes in cross-currency basis spreads are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income (“OCI”). The initial value of the excluded component is recognized in earnings over the life of the swap under the amortization approach. (3) See “Note 10—Stockholders’ Equity” for the effects of cash flow and net investment hedges on AOCI and amounts reclassified to net income, net of tax. (4) We recognized a gain of $73 million and loss of $8 million for the three months ended March 31, 2024 and 2023, respectively, on foreign exchange contracts reclassified from AOCI. These amounts were largely offset by the foreign currency transaction gains (losses) on our foreign currency denominated intercompany funding included in other non-interest income on our consolidated statements of income . In the next 12 months, we expect to reclassify into earnings an after-tax loss of $786 million recorded in AOCI as of March 31, 2024 associated with cash flow hedges of forecasted transactions. This amount will largely offset the cash flows associated with the forecasted transactions hedged by these derivatives. The maximum length of time over which forecasted transactions were hedged was approximately 9.0 years as of March 31, 2024. The amount we expect to reclassify into earnings may change as a result of changes in market conditions and ongoing actions taken as part of our overall risk management strategy. Free-Standing Derivatives The net impacts to our consolidated statements of income related to free-standing derivatives are presented below for the three months ended March 31, 2024 and 2023. These gains or losses are recognized in other non-interest income on our consolidated statements of income. Table 9.5: Gains (Losses) on Free-Standing Derivatives Three Months Ended March 31, (Dollars in millions) 2024 2023 Gains (losses) recognized in other non-interest income: Customer accommodation: Interest rate contracts $ 7 $ 8 Commodity contracts 4 8 Foreign exchange and other contracts 6 3 Total customer accommodation 17 19 Other interest rate exposures 68 52 Other contracts (11) (5) Total $ 74 $ 66 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 10—STOCKHOLDERS’ EQUITY Preferred Stock The following table summarizes our preferred stock outstanding as of March 31, 2024 and December 31, 2023. Table 10.1: Preferred Stock Outstanding (1) Redeemable by Issuer Beginning Per Annum Dividend Rate Dividend Frequency Liquidation Preference per Share Total Shares Outstanding Carrying Value Series Description Issuance Date March 31, 2024 December 31, 2023 Series I 5.000% September 11, 2019 December 1, 2024 5.000% Quarterly $ 1,000 1,500,000 $ 1,462 $ 1,462 Series J 4.800% January 31, June 1, 2025 4.800 Quarterly 1,000 1,250,000 1,209 1,209 Series K 4.625% September 17, 2020 December 1, 2025 4.625 Quarterly 1,000 125,000 122 122 Series L 4.375% May 4, September 1, 2026 4.375 Quarterly 1,000 675,000 652 652 Series M 3.950% Fixed Rate Reset June 10, September 1, 2026 3.950% through 8/31/2026; resets 9/1/2026 and every subsequent 5 year anniversary at 5-Year Treasury Rate +3.157% Quarterly 1,000 1,000,000 988 988 Series N 4.250% July 29, September 1, 2026 4.250% Quarterly 1,000 425,000 412 412 Total $ 4,845 $ 4,845 __________ (1) Except for Series M , ownership is held in the form of depositary shares, each representing a 1/40th interest in a share of fixed-rate non-cumulative perpetual preferred stock. Accumulated Other Comprehensive Income AOCI primarily consists of accumulated net unrealized gains or losses associated with securities available for sale, changes in fair value of derivatives in hedging relationships and foreign currency translation adjustments. The following table presents the changes in AOCI by component for the three months ended March 31, 2024 and 2023. Table 10.2: AOCI (Dollars in millions) Securities Available for Sale Hedging Relationships (1) Foreign Currency Translation Adjustments (2) Other Total AOCI as of December 31, 2023 $ (6,769) $ (1,493) $ 26 $ (32) $ (8,268) Other comprehensive income (loss) before reclassifications (844) (587) (13) 1 (1,443) Amounts reclassified from AOCI into earnings 0 177 0 0 177 Other comprehensive income (loss), net of tax (844) (410) (13) 1 (1,266) AOCI as of March 31, 2024 $ (7,613) $ (1,903) $ 13 $ (31) $ (9,534) (Dollars in millions) Securities Available for Sale Hedging Relationships (1) Foreign Currency Translation Adjustments (2) Other Total AOCI as of December 31, 2022 $ (7,676) $ (2,182) $ (20) $ (38) $ (9,916) Other comprehensive income (loss) before reclassifications 962 198 13 0 1,173 Amounts reclassified from AOCI into earnings 0 203 0 0 203 Other comprehensive income (loss), net of tax 962 401 13 0 1,376 AOCI as of March 31, 2023 $ (6,714) $ (1,781) $ (7) $ (38) $ (8,540) __________ (1) Includes amounts related to cash flow hedges as well as the excluded component of cross-currency swaps designated as fair value hedges. (2) Includes other comprehensive gains of $49 million and losses of $38 million for the three months ended March 31, 2024 and 2023 , respectively, from hedging instruments designated as net investment hedges. The following table presents amounts reclassified from each component of AOCI to our consolidated statements of income for the three months ended March 31, 2024 and 2023. Table 10.3: Reclassifications from AOCI (Dollars in millions) Three Months Ended March 31, AOCI Components Affected Income Statement Line Item 2024 2023 Securities available for sale: Non-interest income (loss) $ 0 $ 0 Income tax provision (benefit) 0 0 Net income (loss) 0 0 Hedging relationships: Interest rate contracts: Interest income (loss) (309) (262) Foreign exchange contracts: Interest income 2 3 Interest expense (1) (1) Non-interest income (loss) 74 (8) Income (loss) from continuing operations before income taxes (234) (268) Income tax provision (benefit) (57) (65) Net income (loss) (177) (203) Other: Non-interest income and non-interest expense 0 0 Income tax provision (benefit) 0 0 Net income 0 0 Total reclassifications $ (177) $ (203) The table below summarizes other comprehensive income (loss) activity and the related tax impact for the three months ended March 31, 2024 and 2023. Table 10.4: Other Comprehensive Income (Loss) Three Months Ended March 31, 2024 2023 (Dollars in millions) Before Provision After Before Provision After Other comprehensive income (loss): Net unrealized gains (losses) on securities available for sale $ (1,115) $ (271) $ (844) $ 1,267 $ 305 $ 962 Net unrealized gains (losses) on hedging relationships (542) (132) (410) 528 127 401 Foreign currency translation adjustments (1) 3 16 (13) 1 (12) 13 Other 1 0 1 0 0 0 Other comprehensive income (loss) $ (1,653) $ (387) $ (1,266) $ 1,796 $ 420 $ 1,376 __________ (1) Includes the impact of hedging instruments designated as net investment hedges. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | NOTE 11—EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per common share. Table 11.1: Computation of Basic and Diluted Earnings per Common Share Three Months Ended March 31, (Dollars and shares in millions, except per share data) 2024 2023 Net income $ 1,280 $ 960 Dividends and undistributed earnings allocated to participating securities (23) (16) Preferred stock dividends (57) (57) Net income available to common stockholders $ 1,200 $ 887 Total weighted-average basic common shares outstanding 382.2 382.6 Effect of dilutive securities: (1) Stock options 0.2 0.1 Other contingently issuable shares 1.0 1.1 Total effect of dilutive securities 1.2 1.2 Total weighted-average diluted common shares outstanding 383.4 383.8 Basic earnings per common share: Net income per basic common share $ 3.14 $ 2.32 Diluted earnings per common share: (1) Net income per diluted common share $ 3.13 $ 2.31 __________ (1) Excluded from the computation of diluted earnings per share were awards of 128 thousand shares and 40 thousand shares for the three months ended March 31, 2024 and 2023, respectively, because their inclusion would be anti-dilutive. There were no options excluded from the computation for the three months ended March 31, 2024 and 2023. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | NOTE 12—FAIR VALUE MEASUREMENT Fair value, also referred to as an exit price, is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value accounting guidance provides a three-level fair value hierarchy for classifying financial instruments. This hierarchy is based on the markets in which the assets or liabilities trade and whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. The fair value measurement of a financial asset or liability is assigned a level based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are described below: Level 1: Valuation is based on quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Valuation is based on observable market-based inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Valuation is generated from techniques that use significant assumptions not observable in the market. Valuation techniques include pricing models, discounted cash flow (“DCF”) methodologies or similar techniques. The accounting guidance for fair value measurements requires that we maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. We consider all available information, including observable market data, indications of market liquidity and orderliness, and our understanding of the valuation techniques and significant inputs. Based upon the specific facts and circumstances of each instrument or instrument category, judgments are made regarding the significance of the observable or unobservable inputs to the instruments’ fair value measurement in its entirety. If unobservable inputs are considered significant, the instrument is classified as Level 3. The process for determining fair value using unobservable inputs is generally more subjective and involves a high degree of management judgment and assumptions. The accounting guidance provides for the irrevocable option to elect, on a contract-by-contract basis, to measure certain financial assets and liabilities at fair value at inception of the contract and record any subsequent changes in fair value in earnings. The determination and classification of financial instruments in the fair value hierarchy is performed at the end of each reporting period. We consider all available information, including observable market data, indications of market liquidity and orderliness, and our understanding of the valuation techniques and significant inputs. For additional information on the valuation techniques used in estimating the fair value of our financial assets and liabilities on a recurring basis, see “Part II—Item 8. Financial Statements and Supplementary Data —Note 16—Fair Value Measurement” in our 2023 Form 10-K . Assets and Liabilities Measured at Fair Value on a Recurring Basis Table 12.1: Assets and Liabilities Measured at Fair Value on a Recurring Basis March 31, 2024 Fair Value Measurements Using Netting Adjustments (1) (Dollars in millions) Level 1 Level 2 Level 3 Total Assets: Securities available for sale: U.S. Treasury securities $ 5,728 $ 0 $ 0 0 $ 5,728 RMBS 0 62,089 309 0 62,398 CMBS 0 8,064 129 0 8,193 Other securities 170 1,909 0 0 2,079 Total securities available for sale 5,898 72,062 438 0 78,398 Loans held for sale 0 1,212 0 0 1,212 Other assets: Derivative assets (2) 733 942 974 $ (1,050) 1,599 Other (3) 649 3 35 0 687 Total assets $ 7,280 $ 74,219 $ 1,447 $ (1,050) $ 81,896 Liabilities: Other liabilities: Derivative liabilities (2) $ 593 $ 1,421 $ 920 $ (440) $ 2,494 Total liabilities $ 593 $ 1,421 $ 920 $ (440) $ 2,494 December 31, 2023 Fair Value Measurements Using Netting Adjustments (1) (Dollars in millions) Level 1 Level 2 Level 3 Total Assets: Securities available for sale: U.S. Treasury securities $ 5,282 $ 0 $ 0 0 $ 5,282 RMBS 0 63,492 146 0 63,638 CMBS 0 8,191 132 0 8,323 Other securities 126 1,748 0 0 1,874 Total securities available for sale 5,408 73,431 278 0 79,117 Loans held for sale 0 347 0 0 347 Other assets: Derivative assets (2) 788 1,001 886 $ (1,005) 1,670 Other (3) 589 3 35 0 627 Total assets $ 6,785 $ 74,782 $ 1,199 $ (1,005) $ 81,761 Liabilities: Other liabilities: Derivative liabilities (2) $ 449 $ 1,655 $ 828 $ (597) $ 2,335 Total liabilities $ 449 $ 1,655 $ 828 $ (597) $ 2,335 __________ (1) Represents balance sheet netting of derivative assets and liabilities, and related payables and receivables for cash collateral held or placed with the same counterparty. See “Note 9—Derivative Instruments and Hedging Activities” for additional information. (2) Does not reflec t approximate ly $1 million and $2 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of March 31, 2024 and December 31, 2023, respectively. Non-performance risk is included in the measurement of derivative assets and liabilities on our consolidated balance sheets, and is recorded through non-interest income in the consolidated statements of income. (3) As of March 31, 2024 and December 31, 2023, other includes retained interests in securitizations o f $35 million and $35 million, deferred compensation plan assets of $646 million and $578 million, and equity securities of $6 million (including unrealized gains of $1 million) and $14 million (including unrealized gains of $5 million), respectively. Level 3 Recurring Fair Value Rollforward The table below presents a reconciliation for all assets and liabilities measured and recognized at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2024 and 2023. Generally, transfers into Level 3 were primarily driven by the usage of unobservable assumptions in the pricing of these financial instruments as evidenced by wider pricing variations among pricing vendors and transfers out of Level 3 were primarily driven by the usage of assumptions corroborated by market observable information as evidenced by tighter pricing among multiple pricing sources. Table 12.2: Level 3 Recurring Fair Value Rollforward Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three Months Ended March 31, 2024 Total Gains (Losses) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of March 31, 2024 (1) (Dollars in millions) Balance, January 1, 2024 Included in Net Income (1) Included in OCI Purchases Sales Issuances Settlements Transfers Transfers Balance, March 31, 2024 Securities available for sale: (2) RMBS $ 146 $ 2 $ 0 $ 0 $ 0 $ 0 $ (3) $ 182 $ (18) $ 309 $ 2 CMBS 132 0 (2) 0 0 0 (1) 0 0 129 0 Total securities available for sale 278 2 (2) 0 0 0 (4) 182 (18) 438 2 Other assets: Retained interests in securitizations 35 0 0 0 0 0 0 0 0 35 0 Net derivative assets (liabilities) (3) 58 6 0 0 0 (5) (5) 0 0 54 (1) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three Months Ended March 31, 2023 Total Gains (Losses) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of March 31, 2023 (1) (Dollars in millions) Balance, January 1, 2023 Included in Net Income (1) Included in OCI Purchases Sales Issuances Settlements Transfers Transfers Balance, March 31, 2023 Securities available for sale: (2) RMBS $ 236 $ 1 $ 3 $ 0 $ 0 $ 0 $ (5) $ 34 $ (22) $ 247 $ 2 CMBS 142 0 5 0 0 0 (2) 0 0 145 0 Total securities available for sale 378 1 8 0 0 0 (7) 34 (22) 392 2 Other assets: Retained interests in securitizations 36 0 0 0 0 0 0 0 0 36 0 Net derivative assets (liabilities) (3)(4) 5 (5) 0 0 0 104 12 (97) (1) 18 4 _________ (1) Realized gains (losses) on securities available for sale are included in net securities gains (losses) and retained interests in securitizations are reported as a component of non-interest income in our consolidated statements of income. Gains (losses) on derivatives are included as a component of net interest income or non-interest income in our consolidated statements of income. (2) Net unrealized losses included in OCI related to Level 3 securities available for sale still held as of both March 31, 2024 and March 31, 2023 were $8 million. (3) Includes derivative assets and liabilities of $974 million and $920 million, respectively, as of March 31, 2024 and $837 million and $819 million, respectively, as of March 31, 2023. (4) Transfers into Level 3 primarily consist of term Secured Overnight Financing Rate (“SOFR”)-indexed interest rate derivatives. Significant Level 3 Fair Value Asset and Liability Inputs Generally, uncertainties in fair value measurements of financial instruments, such as changes in unobservable inputs, may have a significant impact on fair value. Certain of these unobservable inputs will, in isolation, have a directionally consistent impact on the fair value of the instrument for a given change in that input. Alternatively, the fair value of the instrument may move in an opposite direction for a given change in another input. In general, an increase in the discount rate, default rates, loss severity or credit spreads, in isolation, would result in a decrease in the fair value measurement. In addition, an increase in default rates would generally be accompanied by a decrease in recovery rates, slower prepayment rates and an increase in liquidity spreads, and would lead to a decrease in the fair value measurement. Techniques and Inputs for Level 3 Fair Value Measureme nts The following table presents the significant unobservable inputs used to determine the fair values of our Level 3 financial instruments on a recurring basis. We utilize multiple vendor pricing services to obtain fair value for our securities. Several of our vendor pricing services are only able to provide unobservable input information for a limited number of securities due to software licensing restrictions. Other vendor pricing services are able to provide unobservable input information for all securities for which they provide a valuation. As a result, the unobservable input information for the securities available for sale presented below represents a composite summary of all information we are able to obtain. The unobservable input information for all other Level 3 financial instruments is based on the assumptions used in our internal valuation models. Table 12.3: Quantitative Information about Level 3 Fair Value Measurements Quantitative Information about Level 3 Fair Value Measurements (Dollars in millions) Fair Value at Significant Significant Range Weighted Average (1) Securities available for sale: RMBS $ 309 Discounted cash flows (vendor pricing) Yield 5-14% 0-12% 0-10% 30-80% 6% 7% 2% 61% CMBS 129 Discounted cash flows (vendor pricing) Yield 6-7% 6% Other assets: Retained interests in securitizations (2) 35 Discounted cash flows Life of receivables (months) 31-73 9% 5%-13% 1% 54%-155% N/A Net derivative assets (liabilities) 54 Discounted cash flows Swap rates 4-5% 4% Quantitative Information about Level 3 Fair Value Measurements (Dollars in millions) Fair Value at Significant Significant Range Weighted Average (1) Securities available for sale: RMBS $ 146 Discounted cash flows (vendor pricing) Yield 2-19% 0-12% 0-10% 30-80% 7% 7% 1% 61% CMBS 132 Discounted cash flows (vendor pricing) Yield 5-7% 5% Other assets: Retained interests in securitizations (2) 35 Discounted cash flows Life of receivables (months) 33-69 9% 5-14% 2% 53-163% N/A Net derivative assets (liabilities) 58 Discounted cash flows Swap rates 3-5% 4% __________ (1) Weighted averages are calculated by using the product of the input multiplied by the relative fair value of the instruments. (2) Due to the nature of the various mortgage securitization structures in which we have retained interests, it is not meaningful to present a consolidated weighted average for the significant unobservable inputs. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We are required to measure and recognize certain assets at fair value on a nonrecurring basis on the consolidated balance sheets. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, from the application of lower of cost or fair value accounting or when we evaluate for impairment). The following table presents the carrying value of the assets measured at fair value on a nonrecurring basis and still held as of March 31, 2024 and December 31, 2023, and for which a nonrecurring fair value measurement was recorded during the three and twelve months then ended. Table 12.4: Nonrecurring Fair Value Measurements March 31, 2024 Estimated Fair Value Hierarchy Total (Dollars in millions) Level 2 Level 3 Loans held for investment $ 0 $ 361 $ 361 Loans held for sale 10 0 10 Other assets (1) 0 86 86 Total $ 10 $ 447 $ 457 December 31, 2023 Estimated Fair Value Hierarchy Total (Dollars in millions) Level 2 Level 3 Loans held for investment $ 0 $ 545 $ 545 Loans held for sale 37 0 37 Other assets (1) 0 214 214 Total $ 37 $ 759 $ 796 __________ (1) As of March 31, 2024, other assets included investments accounted for under measurement alternative of $31 million and repossessed assets of $55 million. As of December 31, 2023, other assets included investments accounted for under measurement alternative of $46 million, repossessed assets of $45 million and long-lived assets held for sale and right-of-use assets totaling $123 million. In the above table, loans held for investment are generally valued based in part on the estimated fair value of the underlying collateral and the non-recoverable rate, which is considered to be a significant unobservable input. The non-recoverable rate ranged from 10% to 59%, with a weighted average of 26%, and from 0% to 100%, wi th a weighted average of 18%, as of March 31, 2024 and December 31, 2023, respectively. The weighted average non-recoverable rate is calculated based on the estimated market value of the underlying collateral. The significant unobservable inputs and related quantitative information related to fair value of the other assets are not meaningful to disclose as they vary significantly across properties and collateral. The following table presents total nonrecurring fair value measurements for the period, included in earnings, attributable to the change in fair value relating to assets that are still held at March 31, 2024 and 2023. Table 12.5: Nonrecurring Fair Value Measurements Included in Earnings Total Gains (Losses) Three Months Ended March 31, (Dollars in millions) 2024 2023 Loans held for investment $ (127) $ (105) Loans held for sale (10) 0 Other assets (1) (63) (37) Total $ (200) $ (142) __________ (1) Other assets include fair value adjustments related to repossessed assets, long-lived assets held for sale and right-of-use assets, and equity investments accounted for under the measurement alternative. Fair Value of Financial Instruments The following table presents the carrying value and estimated fair value, including the level within the fair value hierarchy, of our financial instruments that are not measured at fair value on a recurring basis on our consolidated balance sheets as of March 31, 2024 and December 31, 2023 . Table 12.6: Fair Value of Financial Instruments March 31, 2024 Carrying Estimated Estimated Fair Value Hierarchy (Dollars in millions) Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 51,028 $ 51,028 $ 4,671 $ 46,357 $ 0 Restricted cash for securitization investors 474 474 474 0 0 Net loans held for investment 299,774 302,943 0 0 302,943 Loans held for sale 419 431 0 431 0 Interest receivable 2,514 2,514 0 2,514 0 Other investments (1) 1,329 1,329 0 1,329 0 Financial liabilities: Deposits with defined maturities 75,749 75,583 0 75,583 0 Securitized debt obligations 17,661 17,703 0 17,703 0 Senior and subordinated notes 32,108 32,894 0 32,894 0 Federal funds purchased and securities loaned or sold under agreements to repurchase 568 568 0 568 0 Interest payable 762 762 0 762 0 December 31, 2023 Carrying Estimated Estimated Fair Value Hierarchy (Dollars in millions) Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 43,297 $ 43,297 $ 4,903 $ 38,394 $ 0 Restricted cash for securitization investors 458 458 458 0 0 Net loans held for investment 305,176 308,044 0 0 308,044 Loans held for sale 507 515 0 515 0 Interest receivable 2,478 2,478 0 2,478 0 Other investments (1) 1,329 1,329 0 1,329 0 Financial liabilities: Deposits with defined maturities 83,014 82,990 0 82,990 0 Securitized debt obligations 18,043 18,067 0 18,067 0 Senior and subordinated notes 31,248 31,524 0 31,524 0 Federal funds purchased and securities loaned or sold under agreements to repurchase 538 538 0 538 0 Interest payable 649 649 0 649 0 __________ (1) Other investments include FHLB and Federal Reserve stock. These investments are included in other assets on our consolidated balance sheets. |
Business Segments and Revenue f
Business Segments and Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Business Segments and Revenue from Contracts with Customers | NOTE 13—BUSINESS SEGMENTS AND REVENUE FROM CONTRACTS WITH CUSTOMERS Our principal operations are organized into three major business segments, which are defined primarily based on the products and services provided or the types of customers served: Credit Card, Consumer Banking and Commercial Banking. The operations of acquired businesses have been integrated into or managed as a part of our existing business segments. Certain activities that are not part of a business segment are included in the Other category, such as the management of our corporate investment portfolio and asset/liability positions performed by our centralized Corporate Treasury group and any residual tax expense or benefit beyond what is assessed to our business segments in order to arrive at the consolidated effective tax rate. The Other category also includes unallocated corporate expenses that do not directly support the operations of the business segments or for which the business segments are not considered financially accountable in evaluating their performance, such as certain restructuring charges. Basis of Presentation We report the results of each of our business segments on a continuing operations basis. The results of our individual businesses reflect the manner in which management evaluates performance and makes decisions about funding our operations and allocating resources. Business Segment Reporting Methodology The results of our business segments are intended to present each segment as if it were a stand-alone business. Our internal management and reporting process used to derive our segment results employs various allocation methodologies, including funds transfer pricing, to assign certain balance sheet assets, deposits and other liabilities and their related revenues and expenses directly or indirectly attributable to each business segment. Our funds transfer pricing process managed by our centralized Corporate Treasury group provides a funds credit for sources of funds, such as deposits generated by our Consumer Banking and Commercial Banking businesses, and a charge for the use of funds by each segment. The allocation is unique to each business segment and acquired business and is based on the composition of assets and liabilities. The funds transfer pricing process considers the interest rate and liquidity risk characteristics of assets and liabilities and off-balance sheet products. Periodically the methodology and assumptions utilized in the funds transfer pricing process are adjusted to reflect economic conditions and other factors, which may impact the allocation of net interest income to the business segments. Due to the integrated nature of our business segments, estimates and judgments have been made in allocating certain revenue and expense items. Transactions between segments are based on specific criteria or approximate market rates. We regularly assess the assumptions, methodologies and reporting classifications used for segment reporting, which may result in the implementation of refinements or changes in future periods. We provide additional information on the allocation methodologies used to derive our business segment results in “Part II—Item 8. Financial Statements and Supplementary Data—Note 17—Business Segments and Revenue from Contracts with Customers” in our 2023 Form 10-K. Segment Results and Reconciliation We may periodically change our business segments or reclassify business segment results based on modifications to our management reporting methodologies or changes in organizational alignment. The following table presents our business segment results for the three months ended March 31, 2024 and 2023, selected balance sheet data as of March 31, 2024 and 2023, and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, loans held for investment and deposits. Table 13.1: Segment Results and Reconciliation Three Months Ended March 31, 2024 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total Net interest income (loss) $ 5,272 $ 2,011 $ 599 $ (394) $ 7,488 Non-interest income (loss) 1,476 159 281 (2) 1,914 Total net revenue (loss) (2) 6,748 2,170 880 (396) 9,402 Provision (benefit) for credit losses 2,259 426 (2) 0 2,683 Non-interest expense 3,229 1,246 515 147 5,137 Income (loss) from continuing operations before income taxes 1,260 498 367 (543) 1,582 Income tax provision (benefit) 299 117 87 (201) 302 Income (loss) from continuing operations, net of tax $ 961 $ 381 $ 280 $ (342) $ 1,280 Loans held for investment $ 150,594 $ 75,099 $ 89,461 $ 0 $ 315,154 Deposits 0 300,806 31,082 19,081 350,969 Three Months Ended March 31, 2023 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total Net interest income (loss) $ 4,657 $ 2,360 $ 648 $ (479) $ 7,186 Non-interest income 1,363 135 212 7 1,717 Total net revenue (loss) (2) 6,020 2,495 860 (472) 8,903 Provision (benefit) for credit losses 2,261 275 259 0 2,795 Non-interest expense 3,038 1,283 530 94 4,945 Income (loss) from continuing operations before income taxes 721 937 71 (566) 1,163 Income tax provision (benefit) 172 221 17 (207) 203 Income (loss) from continuing operations, net of tax $ 549 $ 716 $ 54 $ (359) $ 960 Loans held for investment $ 137,142 $ 78,151 $ 93,543 $ 0 $ 308,836 Deposits 0 291,163 38,380 20,284 349,827 _________ (1) Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category. (2) Total net revenue was reduced by $630 million and $405 million in the first quarters of 2024 and 2023, respectively, for credit card finance charges and fees charged off as uncollectible. Revenue from Contracts with Customers The majority of our revenue from contracts with customers consists of interchange fees, service charges and other customer-related fees, and other contract revenue. Interchange fees are primarily from our Credit Card business and are recognized upon settlement with the interchange networks, net of rewards earned by customers. Service charges and other customer-related fees within our Consumer Banking business are primarily related to fees earned on consumer deposit accounts for account maintenance and various transaction-based services such as automated teller machine (“ATM”) usage. Service charges and other customer-related fees within our Commercial Banking business are mostly related to fees earned on treasury management and capital markets services. Other contract revenue in our Credit Card business consists primarily of revenue from our partnership arrangements. Other contract revenue in our Consumer Banking business consists primarily of revenue earned from services provided to auto industry participants. Revenue from contracts with customers is included in non-interest income in our consolidated statements of income. The following table presents revenue from contracts with customers and a reconciliation to non-interest income by business segment for the three months ended March 31, 2024 and 2023. Table 13.2: Revenue from Contracts with Customers and Reconciliation to Segment Results Three Months Ended March 31, 2024 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total Contract revenue: Interchange fees, net (2) $ 1,020 $ 98 $ 27 $ 0 $ 1,145 Service charges and other customer-related fees 0 4 74 0 78 Other 121 44 2 0 167 Total contract revenue 1,141 146 103 0 1,390 Revenue (reduction) from other sources 335 13 178 (2) 524 Total non-interest income (loss) $ 1,476 $ 159 $ 281 $ (2) $ 1,914 Three Months Ended March 31, 2023 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total Contract revenue: Interchange fees, net (2) $ 1,025 $ 86 $ 27 $ 1 $ 1,139 Service charges and other customer-related fees 0 21 40 (1) 60 Other 55 19 5 0 79 Total contract revenue 1,080 126 72 0 1,278 Revenue from other sources 283 9 140 7 439 Total non-interest income $ 1,363 $ 135 $ 212 $ 7 $ 1,717 __________ (1) Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category. (2) |
Commitments, Contingencies, Gua
Commitments, Contingencies, Guarantees and Others | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, Guarantees and Others | NOTE 14—COMMITMENTS, CONTINGENCIES, GUARANTEES AND OTHERS Commitments to Lend Our unfunded lending commitments primarily consist of credit card lines, loan commitments to customers of both our Commercial Banking and Consumer Banking businesses, as well as standby and commercial letters of credit. These commitments, other than credit card lines and certain other unconditionally cancellable lines of credit, are legally binding conditional agreements that have fixed expirations or termination dates and specified interest rates and purposes. The contractual amount of these commitments represents the maximum possible credit risk to us should the counterparty draw upon the commitment. We generally manage the potential risk of unfunded lending commitments by limiting the total amount of arrangements, monitoring the size and maturity structure of these portfolios and applying the same credit standards for all of our credit activities. For unused credit card lines, we have not experienced and do not anticipate that all of our customers will access their entire available line at any given point in time. Commitments to extend credit other than credit card lines generally require customers to maintain certain credit standards. Collateral requirements and loan-to-value (“LTV”) ratios are the same as those for funded transactions and are established based on management’s credit assessment of the customer. These commitments may expire without being drawn upon; therefore, the total commitment amount does not necessarily represent future funding requirements. We also issue letters of credit, such as financial standby, performance standby and commercial letters of credit, to meet the financing needs of our customers. Standby letters of credit are conditional commitments issued by us to guarantee the performance of a customer to a third party in a borrowing arrangement. Commercial letters of credit are short-term commitments issued primarily to facilitate trade finance activities for customers and are generally collateralized by the goods being shipped to the customer. These collateral requirements are similar to those for funded transactions and are established based on management’s credit assessment of the customer. Management conducts regular reviews of all outstanding letters of credit and the results of these reviews are considered in assessing the adequacy of reserves for unfunded lending commitments. The following table presents the contractual amount and carrying value of our unfunded lending commitments as of March 31, 2024 and December 31, 2023. The carrying value represents our reserve and deferred revenue on legally binding commitments. Table 14.1: Unfunded Lending Commitments Contractual Amount Carrying Value (Dollars in millions) March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Credit card lines $ 404,968 $ 392,867 N/A N/A Other loan commitments (1) 46,169 46,951 $ 67 $ 99 Standby letters of credit and commercial letters of credit (2) 1,421 1,465 25 23 Total unfunded lending commitments $ 452,558 $ 441,283 $ 92 $ 122 __________ (1) Includes $4.5 billion and $4.7 billion of advised lines of credit as of March 31, 2024 and December 31, 2023, respectively. (2) These financial guarantees have expiration dates that range from 2024 to 2026 as of March 31, 2024. Loss Sharing Agreements Within our Commercial Banking business, we originate multifamily commercial real estate loans with the intent to sell them to the GSEs. We enter into loss sharing agreements with the GSEs upon the sale of these originated loans. Beginning January 1, 2020, we elected the fair value option on new loss sharing agreements entered into. Unrealized gains and losses are recorded in other non-interest income in our consolidated statements of income. For those loss sharing agreements entered into as of and prior to December 31, 2019, we amortize the liability recorded at inception into non-interest income as we are released from risk of having to make a payment and record our estimate of expected credit losses each period through the provision for credit losses in our consolidated statements of income. The liability recognized on our consolidated balance sheets for these loss sharing agreements was $143 million and $137 million as of March 31, 2024 and December 31, 2023, respectively. See “Note 5—Allowance for Credit Losses and Reserve for Unfunded Lending Commitments” for information related to our credit card partnership loss sharing arrangements. Litigation In accordance with the current accounting standards for loss contingencies, we establish reserves for litigation related matters that arise from the ordinary course of our business activities when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss can be reasonably estimated. None of the amounts we currently have recorded individually or in the aggregate are considered to be material to our financial condition. Litigation claims and proceedings of all types are subject to many uncertain factors that generally cannot be predicted with assurance. Below we provide a description of potentially material legal proceedings and claims. For some of the matters disclosed below, we are able to estimate reasonably possible losses above existing reserves, and for other disclosed matters, such an estimate is not possible at this time. For those matters below where an estimate is possible, management currently estimates the reasonably possible future losses beyond our reserves as of March 31, 2024 are approximately $200 million. Our reserve and reasonably possible loss estimates involve considerable judgment and reflect that there is still significant uncertainty regarding numerous factors that may impact the ultimate loss levels. Notwithstanding, our attempt to estimate a reasonably possible range of loss beyond our current accrual levels for some litigation matters based on current information, it is possible that actual future losses will exceed both the current accrual level and the range of reasonably possible losses disclosed here. Given the inherent uncertainties involved in these matters, especially those involving governmental agencies, and the very large or indeterminate damages sought in some of these, there is significant uncertainty as to the ultimate liability we may incur from these litigation matters and an adverse outcome in one or more of these matters could be material to our results of operations or cash flows for any particular reporting period. Interchange Litigation In 2005, a putative class of retail merchants filed antitrust lawsuits against MasterCard and Visa and several issuing banks, including Capital One, seeking both injunctive relief and monetary damages for an alleged conspiracy by defendants to fix the level of interchange fees. The Visa and MasterCard payment networks and issuing banks entered into settlement and judgment sharing agreements allocating the liabilities of any judgment or settlement arising from all interchange-related cases. The lawsuits were consolidated before the U.S. District Court for the Eastern District of New York for certain purposes and were settled in 2012. The class settlement, however, was invalidated by the United States Court of Appeals for the Second Circuit in June 2016, and the suit was bifurcated into separate class actions seeking injunctive and monetary relief, respectively. In addition, numerous merchant groups opted out of the 2012 settlement. The monetary relief class action settled for $5.5 billion. The settlement received final approval from the District Court in December 2019. The Second Circuit affirmed the settlement in March 2023, and it is final. Some of the merchants that opted out of the monetary relief class have brought cases, and some of those cases have settled and some remain pending. Visa created a litigation escrow account following its initial public offering of stock in 2008 that funds the portion of these settlements attributable to Visa-allocated transactions. Any settlement amounts based on MasterCard-allocated transactions that have not already been paid are reflected in our reserves. The networks reached a settlement with the injunctive relief class and filed with the District Court a motion for preliminary approval of the settlement in March 2024. A hearing on the settlement will be held in June 2024. Cybersecurity Incident On July 29, 2019, we announced that on March 22 and 23, 2019 an outside individual gained unauthorized access to our systems. This individual obtained certain types of personal information relating to people who had applied for our credit card products and to our credit card customers (the “2019 Cybersecurity Incident”). As a result of the 2019 Cybersecurity Incident, we have been subject to numerous legal proceedings and other inquiries and could be the subject of additional proceedings and inquiries in the future. Consumer class actions . We are named as a defendant in 5 putative consumer class action cases in Canadian courts alleging harm from the 2019 Cybersecurity Incident and seeking various remedies, including monetary and injunctive relief. The lawsuits allege breach of contract, negligence, violations of various privacy laws and a variety of other legal causes of action. In August 2021, a trial court in Ontario dismissed with prejudice one of these putative class actions, and on January 31, 2024, the Court of Appeals of Ontario affirmed the trial court’s decision. The Plaintiffs have sought leave to appeal to Canada’s Supreme Court. In the second quarter of 2022, a trial court in British Columbia preliminarily certified a class of all impacted Canadian consumers except those in Quebec. The preliminary certification decision in British Columbia has been appealed. In the third quarter of 2023, a trial court in Quebec preliminarily authorized a class of all impacted consumers in Quebec. This decision also has been appealed. The final two putative class actions, both of which are pending in Alberta, are continuing in parallel, but currently remain at a preliminary stage. Governmental inquiries. In August 2020, we entered into consent orders with the Board of Governors of the Federal Reserve System (“Federal Reserve”) and the Office of the Comptroller of the Currency (“OCC”) resulting from regulatory reviews of the 2019 Cybersecurity Incident and relating to ongoing enhancements of our cybersecurity and operational risk management processes. We paid an $80 million penalty to the U.S. Treasury as part of the OCC agreement. The Federal Reserve agreement did not contain a monetary penalty. The OCC lifted its consent order on August 31, 2022 and the Federal Reserve lifted its consent order on July 5, 2023. On August 12, 2019, Canada’s Office of Privacy Commissioner (“OPC”) also initiated an investigation into the 2019 Cybersecurity Incident. That investigation concluded in April 2024 with no further action required. Walmart Litigation On April 7, 2023, Walmart filed a lawsuit in the Southern District of New York seeking a declaratory judgment that it has the contractual right to early termination of the credit card partnership agreement under which we are the exclusive issuer of Walmart’s private label and co-branded credit card program in the U.S. and share in certain related economics. On May 2, 2023, Walmart filed an amended complaint in which it also alleged breach of contract and sought damages caused by any delay in termination. On May 4, 2023, we filed an Answer and Counterclaim to Walmart’s amended complaint, denying that Walmart has any right to terminate the partnership and alleging that Walmart has breached its contractual obligations to Capital One. On March 26, 2024, the District Court ruled that Walmart was legally entitled to, and did, terminate the partnership agreement. The partnership agreement includes provisions for transition upon termination. On April 18, 2024, the court granted the joint request of the parties for a stay while the parties conduct negotiations regarding the termination of the partnership and transition of the portfolio. U.K. PPI Litigation In the U.K., we previously sold payment protection insurance (“PPI”). For several years leading up to the claims submission deadline of August 29, 2019 (as set by the U.K. Financial Conduct Authority (“FCA”)), we received customer complaints and regulatory claims relating to PPI. COEP has materially resolved the PPI complaints and regulatory claims received prior to the deadline. Some of the claimants in the U.K. PPI regulatory claims process have subsequently initiated legal proceedings, seeking additional redress. We are responding to these proceedings as we receive them. Savings Account Litigation In July 2023, Capital One was sued in a putative class action in the Eastern District of Virginia by savings account holders alleging breach of contract and a variety of other causes of action relating to Capital One’s introduction of a new savings account product with a higher interest rate than existing savings account products. Since the original suit, Capital One was also sued in six similar putative class actions in federal courts in California, Illinois, Ohio, Virginia, New Jersey and New York. In March 2024, Capital One filed with the Judicial Panel on Multidistrict Litigation a motion to consolidate and transfer related actions to the Eastern District of Virginia. Other Pending and Threatened Litigation In addition, we are commonly subject to various pending and threatened legal actions relating to the conduct of our normal business activities. In the opinion of management, the ultimate aggregate liability, if any, arising out of all such other pending or threatened legal actions is not expected to be material to our consolidated financial position or our results of operations. Other Contingencies Deposit Insurance Assessments On November 16, 2023, the Federal Deposit Insurance Corporation (“FDIC”) finalized a rule to implement a special assessment to recover the loss to the Deposit Insurance Fund (“DIF”) arising from the protection of uninsured depositors in connection with the systemic risk determination announced on March 12, 2023, following the closures of Silicon Valley Bank and Signature Bank. In December 2023, the FDIC provided notification that they would be collecting the special assessment at an annual rate of approximately 13.4 basis points (“bps”) over eight quarterly assessment periods, beginning with the first quarter of 2024 with the first payment due on June 28, 2024. The special assessment base is equal to an insured depository institution’s estimated uninsured deposits reported on its Consolidated Reports of Condition and Income as of December 31, 2022 (“2022 Call Report”), adjusted to exclude the first $5 billion of uninsured deposits. We recognized $289 million in operating expense in the fourth quarter of 2023 associated with the special assessment based on our 2022 Call Report, which was revised and refiled during 2023. In the first quarter of 2024, the FDIC announced an increase in their estimate of relevant DIF losses. As a result, we recognized an additional $42 million in operating expenses, which increased our established FDIC special assessment accrual to $331 million. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 1,280 | $ 960 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”).We report the results of each of our business segments on a continuing operations basis. The results of our individual businesses reflect the manner in which management evaluates performance and makes decisions about funding our operations and allocating resources. |
Use of Estimates | The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the related disclosures. These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgments, actual amounts or results could differ from these estimates. In the opinion of management, all normal, recurring adjustments have been included for a fair statement of this interim financial information. |
New Adopted Accounting Standards During the Three Months Ended March 31, 2024 | Newly Adopted Accounting Standards During the Three Months Ended March 31, 2024 Standard Guidance Adoption Timing and Financial Statement Impacts Tax Credit Investments ASU No. 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023 Permits entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method, if certain criteria are met. Previously, only Low-Income Housing Tax Credit investments were eligible for application of the proportional amortization method. We adopted this standard on its effective date of January 1, 2024 using a modified retrospective transition method, which results in a cumulative-effect adjustment to retained earnings in the period of adoption. Our adoption of this standard did not have a material impact on our consolidated financial statements See “Consolidated Statements of Changes in Stockholders’ Equity” and “Note 6—Variable Interest Entities and Securitizations” for additional disclosures. |
Balance Sheet Offsetting of Financial Assets and Liabilities | Balance Sheet Offsetting of Financial Assets and Liabilities Derivative contracts and repurchase agreements that we execute bilaterally in the OTC market are generally governed by enforceable master netting agreements where we generally have the right to offset exposure with the same counterparty. Either counterparty can generally request to net settle all contracts through a single payment upon default on, or termination of, any one contract. We elect to offset the derivative assets and liabilities under master netting agreements for balance sheet presentation where a right of setoff exists. For derivative contracts entered into under master netting agreements for which we have not been able to confirm the enforceability of the setoff rights, or those not subject to master netting agreements, we do not offset our derivative positions for balance sheet presentation. |
Revenue Recognition | The majority of our revenue from contracts with customers consists of interchange fees, service charges and other customer-related fees, and other contract revenue. Interchange fees are primarily from our Credit Card business and are recognized upon settlement with the interchange networks, net of rewards earned by customers. Service charges and other customer-related fees within our Consumer Banking business are primarily related to fees earned on consumer deposit accounts for account maintenance and various transaction-based services such as automated teller machine (“ATM”) usage. Service charges and other customer-related fees within our Commercial Banking business are mostly related to fees earned on treasury management and capital markets services. Other contract revenue in our Credit Card business consists primarily of revenue from our partnership arrangements. Other contract revenue in our Consumer Banking business consists primarily of revenue earned from services provided to auto industry participants. Revenue from contracts with customers is included in non-interest income in our consolidated statements of income. |
Fair Value | Fair value, also referred to as an exit price, is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value accounting guidance provides a three-level fair value hierarchy for classifying financial instruments. This hierarchy is based on the markets in which the assets or liabilities trade and whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. The fair value measurement of a financial asset or liability is assigned a level based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are described below: Level 1: Valuation is based on quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Valuation is based on observable market-based inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Valuation is generated from techniques that use significant assumptions not observable in the market. Valuation techniques include pricing models, discounted cash flow (“DCF”) methodologies or similar techniques. The accounting guidance for fair value measurements requires that we maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. We consider all available information, including observable market data, indications of market liquidity and orderliness, and our understanding of the valuation techniques and significant inputs. Based upon the specific facts and circumstances of each instrument or instrument category, judgments are made regarding the significance of the observable or unobservable inputs to the instruments’ fair value measurement in its entirety. If unobservable inputs are considered significant, the instrument is classified as Level 3. The process for determining fair value using unobservable inputs is generally more subjective and involves a high degree of management judgment and assumptions. The accounting guidance provides for the irrevocable option to elect, on a contract-by-contract basis, to measure certain financial assets and liabilities at fair value at inception of the contract and record any subsequent changes in fair value in earnings. The determination and classification of financial instruments in the fair value hierarchy is performed at the end of each reporting period. We consider all available information, including observable market data, indications of market liquidity and orderliness, and our understanding of the valuation techniques and significant inputs. For additional information on the valuation techniques used in estimating the fair value of our financial assets and liabilities on a recurring basis, see “Part II—Item 8. Financial Statements and Supplementary Data —Note 16—Fair Value Measurement” in our 2023 Form 10-K . Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis |
Business Segment Reporting Methodology | The results of our business segments are intended to present each segment as if it were a stand-alone business. Our internal management and reporting process used to derive our segment results employs various allocation methodologies, including funds transfer pricing, to assign certain balance sheet assets, deposits and other liabilities and their related revenues and expenses directly or indirectly attributable to each business segment. Our funds transfer pricing process managed by our centralized Corporate Treasury group provides a funds credit for sources of funds, such as deposits generated by our Consumer Banking and Commercial Banking businesses, and a charge for the use of funds by each segment. The allocation is unique to each business segment and acquired business and is based on the composition of assets and liabilities. The funds transfer pricing process considers the interest rate and liquidity risk characteristics of assets and liabilities and off-balance sheet products. Periodically the methodology and assumptions utilized in the funds transfer pricing process are adjusted to reflect economic conditions and other factors, which may impact the allocation of net interest income to the business segments. Due to the integrated nature of our business segments, estimates and judgments have been made in allocating certain revenue and expense items. Transactions between segments are based on specific criteria or approximate market rates. We regularly assess the assumptions, methodologies and reporting classifications used for segment reporting, which may result in the implementation of refinements or changes in future periods. We provide additional information on the allocation methodologies used to derive our business segment results in “Part II—Item 8. Financial Statements and Supplementary Data—Note 17—Business Segments and Revenue from Contracts with Customers” in our 2023 Form 10-K. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | Standard Guidance Adoption Timing and Financial Statement Impacts Tax Credit Investments ASU No. 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023 Permits entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method, if certain criteria are met. Previously, only Low-Income Housing Tax Credit investments were eligible for application of the proportional amortization method. We adopted this standard on its effective date of January 1, 2024 using a modified retrospective transition method, which results in a cumulative-effect adjustment to retained earnings in the period of adoption. Our adoption of this standard did not have a material impact on our consolidated financial statements See “Consolidated Statements of Changes in Stockholders’ Equity” and “Note 6—Variable Interest Entities and Securitizations” for additional disclosures. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-Sale Securities | The table below presents the amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair value aggregated by major security type as of March 31, 2024 and December 31, 2023. Accrued interest receivable of $248 million and $227 million as of March 31, 2024 and December 31, 2023, respectively, is not included in the table below. Table 3.1: Investment Securities Available for Sale March 31, 2024 (Dollars in millions) Amortized Allowance Gross Gross Fair Investment securities available for sale: U.S. Treasury securities $ 5,764 $ 0 $ 3 $ (39) $ 5,728 RMBS: Agency 71,153 0 74 (9,506) 61,721 Non-agency 600 (4) 86 (5) 677 Total RMBS 71,753 (4) 160 (9,511) 62,398 Agency CMBS 8,867 0 19 (693) 8,193 Other securities (1) 2,075 0 4 0 2,079 Total investment securities available for sale $ 88,459 $ (4) $ 186 $ (10,243) $ 78,398 December 31, 2023 (Dollars in millions) Amortized Allowance Gross Gross Fair Investment securities available for sale: U.S. Treasury securities $ 5,330 $ 0 $ 1 $ (49) $ 5,282 RMBS: Agency 71,294 0 104 (8,450) 62,948 Non-agency 610 (4) 89 (5) 690 Total RMBS 71,904 (4) 193 (8,455) 63,638 Agency CMBS 8,961 0 14 (652) 8,323 Other securities (1) 1,868 0 6 0 1,874 Total investment securities available for sale $ 88,063 $ (4) $ 214 $ (9,156) $ 79,117 __________ (1) Includes $1.6 billion and $1.4 billion of asset-backed securities (“ABS”) as of March 31, 2024 and December 31, 2023, respectively. The remaining amount is primarily comprised of supranational bonds, foreign government bonds and U.S. agency debt bonds. |
Schedule of Available-for-Sale Securities in Gross Unrealized Loss Position | The table below provides the gross unrealized losses and fair value of our securities available for sale aggregated by major security type and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2024 and December 31, 2023. The amounts include securities available for sale without an allowance for credit losses. Table 3.2: Securities in a Gross Unrealized Loss Position March 31, 2024 Less than 12 Months 12 Months or Longer Total (Dollars in millions) Fair Value Gross Fair Value Gross Fair Value Gross Investment securities available for sale without an allowance for credit losses: U.S. Treasury securities $ 443 $ (1) $ 2,099 $ (38) $ 2,542 $ (39) RMBS: Agency 3,213 (36) 53,912 (9,470) 57,125 (9,506) Non-agency 5 0 14 (1) 19 (1) Total RMBS 3,218 (36) 53,926 (9,471) 57,144 (9,507) Agency CMBS 544 (5) 6,509 (688) 7,053 (693) Other securities 398 0 99 0 497 0 Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses (1) $ 4,603 $ (42) $ 62,633 $ (10,197) $ 67,236 $ (10,239) December 31, 2023 Less than 12 Months 12 Months or Longer Total (Dollars in millions) Fair Value Gross Fair Value Gross Fair Value Gross Investment securities available for sale without an allowance for credit losses: U.S. Treasury securities $ 733 $ 0 $ 2,242 $ (49) $ 2,975 $ (49) RMBS: Agency 3,511 (43) 53,987 (8,407) 57,498 (8,450) Non-agency 1 0 13 (1) 14 (1) Total RMBS 3,512 (43) 54,000 (8,408) 57,512 (8,451) Agency CMBS 547 (7) 6,465 (645) 7,012 (652) Other securities 276 0 4 0 280 0 Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses (1) $ 5,068 $ (50) $ 62,711 $ (9,102) $ 67,779 $ (9,152) __________ (1) Consists of approxima tely 2,770 and 2,740 se cur ities in gross unrealized loss positions as of March 31, 2024 and December 31, 2023, respectively. |
Schedule of Contractual Maturities for Securities | The table below summarizes, as of March 31, 2024, the fair value of our investment securities by major security type and contractual maturity as well as the total fair value, amortized cost and weighted-average yields of our investment securities by contractual maturity. Since borrowers may have the right to call or prepay certain obligations, the expected maturities of our securities are likely to differ from the scheduled contractual maturities presented below. The weighted-average yield below represents the effective yield for the investment securities and is calculated based on the amortized cost of each security. Table 3.3: Contractual Maturities and Weighted-Average Yields of Securities March 31, 2024 (Dollars in millions) Due in Due > 1 Year Due > 5 Years Due > 10 Years Total Fair value of securities available for sale: U.S. Treasury securities $ 1,892 $ 3,542 $ 294 $ 0 $ 5,728 RMBS (1) : Agency 2 92 1,073 60,554 61,721 Non-agency 0 0 5 672 677 Total RMBS 2 92 1,078 61,226 62,398 Agency CMBS (1) 494 2,482 3,221 1,996 8,193 Other securities 373 1,682 24 0 2,079 Total securities available for sale $ 2,761 $ 7,798 $ 4,617 $ 63,222 $ 78,398 Amortized cost of securities available for sale $ 2,788 $ 7,986 $ 5,013 $ 72,672 $ 88,459 Weighted-average yield for securities available for sale 3.50% 4.43% 3.52% 3.10% 3.26% __________ (1) As of March 31, 2024, the weighted-average expected maturities of RMBS and Agency CMBS were 7.8 years and 4.4 years, respectively. |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Loan Portfolio Composition and Aging Analysis | The table below presents the composition and aging analysis of our loans held for investment portfolio as of March 31, 2024 and December 31, 2023. The delinquency aging includes all past due loans, both performing and nonperforming. Table 4.1: Loan Portfolio Composition and Aging Analysis March 31, 2024 Delinquent Loans (Dollars in millions) Current 30-59 60-89 > 90 Days Total Total Credit Card: Domestic credit card $ 137,416 $ 1,735 $ 1,371 $ 3,339 $ 6,445 $ 143,861 International card businesses 6,401 113 75 144 332 6,733 Total credit card 143,817 1,848 1,446 3,483 6,777 150,594 Consumer Banking: Auto 69,431 2,769 1,244 357 4,370 73,801 Retail banking 1,269 11 3 15 29 1,298 Total consumer banking 70,700 2,780 1,247 372 4,399 75,099 Commercial Banking: Commercial and multifamily real estate 34,050 0 94 128 222 34,272 Commercial and industrial 55,019 3 29 138 170 55,189 Total commercial banking 89,069 3 123 266 392 89,461 Total loans (1) $ 303,586 $ 4,631 $ 2,816 $ 4,121 $ 11,568 $ 315,154 % of Total loans 96.33% 1.47% 0.89% 1.31% 3.67% 100.00% December 31, 2023 Delinquent Loans (Dollars in millions) Current 30-59 60-89 > 90 Days Total Total Credit Card: Domestic credit card $ 140,860 $ 1,968 $ 1,471 $ 3,367 $ 6,806 $ 147,666 International card businesses 6,552 116 76 137 329 6,881 Total credit card 147,412 2,084 1,547 3,504 7,135 154,547 Consumer Banking: Auto 68,768 3,268 1,555 484 5,307 74,075 Retail banking 1,329 15 3 15 33 1,362 Total consumer banking 70,097 3,283 1,558 499 5,340 75,437 December 31, 2023 Delinquent Loans (Dollars in millions) Current 30-59 60-89 > 90 Days Total Total Commercial Banking: Commercial and multifamily real estate 34,325 0 14 107 121 34,446 Commercial and industrial 55,861 0 0 181 181 56,042 Total commercial banking 90,186 0 14 288 302 90,488 Total loans (1) $ 307,695 $ 5,367 $ 3,119 $ 4,291 $ 12,777 $ 320,472 % of Total loans 96.01% 1.68% 0.97% 1.34% 3.99% 100.00% __________ (1) Loans include unamortized premiums, discounts, and deferred fees and costs totaling $1.3 billion and $1.4 billion as of March 31, 2024 and December 31, 2023, respectively . |
90 Plus Day Delinquent Loans Accruing Interest and Nonperforming Loans | The following table presents our loans held for investment that are 90 days or more past due that continue to accrue interest, loans that are classified as nonperforming and loans that are classified as nonperforming without an allowance as of March 31, 2024 and December 31, 2023. Nonperforming loans generally include loans that have been placed on nonaccrual status. Table 4.2: 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans March 31, 2024 December 31, 2023 (Dollars in millions) > 90 Days and Accruing Nonperforming Loans (1) Nonperforming > 90 Days and Accruing Nonperforming Loans (1) Nonperforming Credit Card: Domestic credit card $ 3,339 N/A $ 0 $ 3,367 N/A $ 0 International card businesses 140 $ 9 0 132 $ 9 0 Total credit card 3,479 9 0 3,499 9 0 Consumer Banking: Auto 0 585 0 0 712 0 Retail banking 0 41 21 0 46 19 Total consumer banking 0 626 21 0 758 19 Commercial Banking: Commercial and multifamily real estate 5 541 369 0 425 335 Commercial and industrial 18 607 347 55 336 193 Total commercial banking 23 1,148 716 55 761 528 Total $ 3,502 $ 1,783 $ 737 $ 3,554 $ 1,528 $ 547 % of Total loans held for investment 1.11 % 0.57 % 0.23 % 1.11 % 0.48 % 0.17 % __________ (1) We recognized interest income for loans classified as nonperforming of $5 million and $2 million for the three months ended March 31, 2024 and 2023, |
Credit Quality Indicator | The table below presents our credit card portfolio by delinquency status as of March 31, 2024 and December 31, 2023. Table 4.3: Credit Card Delinquency Status March 31, 2024 December 31, 2023 (Dollars in millions) Revolving Loans Revolving Loans Converted to Term Total Revolving Loans Revolving Loans Converted to Term Total Credit Card: Domestic credit card: Current $ 137,043 $ 373 $ 137,416 $ 140,521 $ 339 $ 140,860 30-59 days 1,709 26 1,735 1,940 28 1,968 60-89 days 1,352 19 1,371 1,454 17 1,471 Greater than 90 days 3,313 26 3,339 3,339 28 3,367 Total domestic credit card 143,417 444 143,861 147,254 412 147,666 International card businesses: Current 6,368 33 6,401 6,521 31 6,552 30-59 days 108 5 113 112 4 116 60-89 days 71 4 75 72 4 76 Greater than 90 days 139 5 144 132 5 137 Total international card businesses 6,686 47 6,733 6,837 44 6,881 Total credit card $ 150,103 $ 491 $ 150,594 $ 154,091 $ 456 $ 154,547 The table below presents our consumer banking portfolio of loans held for investment by credit quality indicator as of March 31, 2024 and December 31, 2023. We present our auto loan portfolio by Fair Isaac Corporation (“FICO”) scores at origination and our retail banking loan portfolio by delinquency status, which includes all past due loans, both performing and nonperforming. Table 4.4: Consumer Banking Portfolio by Vintage Year March 31, 2024 Term Loans by Vintage Year (Dollars in millions) 2024 2023 2022 2021 2020 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total Auto — At origination FICO scores: (1) Greater than 660 $ 4,180 $ 11,141 $ 11,433 $ 8,457 $ 2,654 $ 1,132 $ 38,997 $ 0 $ 0 $ 38,997 621-660 1,367 4,526 4,030 2,974 1,148 600 14,645 0 0 14,645 620 or below 1,865 6,228 5,036 3,807 2,024 1,199 20,159 0 0 20,159 Total auto 7,412 21,895 20,499 15,238 5,826 2,931 73,801 0 0 73,801 Retail banking—Delinquency status: Current 69 77 92 56 62 554 910 355 4 1,269 30-59 days 0 0 0 1 0 2 3 8 0 11 60-89 days 0 0 0 0 0 1 1 2 0 3 Greater than 90 days 0 0 0 0 1 7 8 5 2 15 Total retail banking 69 77 92 57 63 564 922 370 6 1,298 Total consumer banking $ 7,481 $ 21,972 $ 20,591 $ 15,295 $ 5,889 $ 3,495 $ 74,723 $ 370 $ 6 $ 75,099 December 31, 2023 Term Loans by Vintage Year (Dollars in millions) 2023 2022 2021 2020 2019 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total Auto — At origination FICO scores: (1) Greater than 660 $ 12,219 $ 12,593 $ 9,505 $ 3,124 $ 1,213 $ 309 $ 38,963 $ 0 $ 0 $ 38,963 621-660 4,863 4,432 3,346 1,337 592 192 14,762 0 0 14,762 620 or below 6,647 5,539 4,283 2,349 1,131 401 20,350 0 0 20,350 Total auto 23,729 22,564 17,134 6,810 2,936 902 74,075 0 0 74,075 Retail banking—Delinquency status: Current 98 157 57 65 117 468 962 363 4 1,329 30-59 days 1 0 1 1 0 1 4 11 0 15 60-89 days 0 0 0 0 0 1 1 2 0 3 Greater than 90 days 0 0 0 0 0 8 8 6 1 15 Total retail banking 99 157 58 66 117 478 975 382 5 1,362 Total consumer banking $ 23,828 $ 22,721 $ 17,192 $ 6,876 $ 3,053 $ 1,380 $ 75,050 $ 382 $ 5 $ 75,437 __________ (1) Amounts 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. The following table presents our commercial banking portfolio of loans held for investment by internal risk ratings as of March 31, 2024 and December 31, 2023. The internal risk rating status includes all past due loans, both performing and nonperforming. Table 4.5: Commercial Banking Portfolio by Internal Risk Ratings March 31, 2024 Term Loans by Vintage Year (Dollars in millions) 2024 2023 2022 2021 2020 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total Internal risk rating: (1) Commercial and multifamily real estate Noncriticized $ 646 $ 2,794 $ 4,392 $ 2,573 $ 994 $ 5,280 $ 16,679 $ 13,046 $ 25 $ 29,750 Criticized performing 53 59 1,501 685 220 1,331 3,849 130 2 3,981 Criticized nonperforming 12 60 45 118 0 299 534 7 0 541 Total commercial and multifamily real estate 711 2,913 5,938 3,376 1,214 6,910 21,062 13,183 27 34,272 Commercial and industrial Noncriticized 1,037 6,784 11,627 6,701 3,341 7,339 36,829 14,096 129 51,054 Criticized performing 42 328 638 672 126 437 2,243 1,284 1 3,528 Criticized nonperforming 0 12 96 41 178 221 548 59 0 607 Total commercial and industrial 1,079 7,124 12,361 7,414 3,645 7,997 39,620 15,439 130 55,189 Total commercial banking $ 1,790 $ 10,037 $ 18,299 $ 10,790 $ 4,859 $ 14,907 $ 60,682 $ 28,622 $ 157 $ 89,461 December 31, 2023 Term Loans by Vintage Year (Dollars in millions) 2023 2022 2021 2020 2019 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total Internal risk rating: (1) Commercial and multifamily real estate Noncriticized $ 3,068 $ 4,665 $ 2,773 $ 1,019 $ 2,104 $ 3,670 $ 17,299 $ 12,565 $ 25 $ 29,889 Criticized performing 148 1,494 706 284 463 904 3,999 133 0 4,132 Criticized nonperforming 65 26 124 0 47 163 425 0 0 425 Total commercial and multifamily real estate 3,281 6,185 3,603 1,303 2,614 4,737 21,723 12,698 25 34,446 Commercial and industrial Noncriticized 6,909 11,935 6,994 3,566 2,359 5,117 36,880 14,822 167 51,869 Criticized performing 353 706 655 237 348 349 2,648 1,189 0 3,837 Criticized nonperforming 13 53 30 18 123 68 305 31 0 336 Total commercial and industrial 7,275 12,694 7,679 3,821 2,830 5,534 39,833 16,042 167 56,042 Total commercial banking $ 10,556 $ 18,879 $ 11,282 $ 5,124 $ 5,444 $ 10,271 $ 61,556 $ 28,740 $ 192 $ 90,488 __________ (1) Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities. The table below presents gross charge-offs for loans held for investment by vintage year during the three months ended March 31, 2024. Table 5.2: Gross Charge-Offs by Vintage Year Three Months Ended March 31, 2024 Term Loans by Vintage Year (Dollars in millions) 2024 2023 2022 2021 2020 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total Credit Card Domestic credit card N/A N/A N/A N/A N/A N/A N/A $ 2,422 $ 30 $ 2,452 International card business N/A N/A N/A N/A N/A N/A N/A 119 3 122 Total credit card N/A N/A N/A N/A N/A N/A N/A 2,541 33 2,574 Consumer Banking Auto $ 4 $ 138 $ 218 $ 163 $ 68 $ 51 $ 642 0 0 642 Retail banking 0 0 0 0 0 0 0 18 0 18 Total consumer banking 4 138 218 163 68 51 642 18 0 660 Commercial Banking Commercial and multifamily real estate 0 0 0 0 0 27 27 0 0 27 Commercial and industrial 0 0 0 4 8 0 12 0 0 12 Total commercial banking 0 0 0 4 8 27 39 0 0 39 Total $ 4 $ 138 $ 218 $ 167 $ 76 $ 78 $ 681 $ 2,559 $ 33 $ 3,273 |
FDM Disclosures | The following tables present the major modification types, amortized cost amounts for each modification type and financial effects for all FDMs undertaken during the three months ended March 31, 2024 and 2023. Table 4.6: Financial Difficulty Modifications to Borrowers Three Months Ended March 31, 2024 Credit Card Consumer Banking Commercial Banking (Dollars in millions) Domestic Card International Card Businesses Total Credit Card Auto Retail Banking Total Consumer Banking Commercial and Multifamily Real Estate Commercial and Industrial Total Commercial Banking Total Interest rate reduction $ 216 $ 54 $ 270 — — — — — — $ 270 Term extension — — — $ 6 $ 2 $ 8 $ 316 $ 135 $ 451 459 Principal balance reduction — — — 9 — 9 — — — 9 Interest rate reduction and term extension 5 — 5 274 — 274 28 — 28 307 Other (1) — — — 1 — 1 91 46 137 138 Total loans modified $ 221 $ 54 $ 275 $ 290 $ 2 $ 292 $ 435 $ 181 $ 616 $ 1,183 % of total class of receivables 0.15 % 0.80 % 0.18 % 0.39 % 0.14 % 0.39 % 1.27 % 0.33 % 0.69 % 0.38 % Three Months Ended March 31, 2023 Credit Card Consumer Banking Commercial Banking (Dollars in millions) Domestic Card International Card Businesses Total Credit Card Auto Retail Banking Total Consumer Banking Commercial and Multifamily Real Estate Commercial and Industrial Total Commercial Banking Total Interest rate reduction $ 150 $ 38 $ 188 — — — — — — $ 188 Term extension — — — $ 42 $ 3 $ 45 $ 129 $ 66 $ 195 240 Principal balance reduction — — — 7 — 7 — — — 7 Principal balance reduction and term extension — — — — — — — 17 17 17 Interest rate reduction and term extension — — — 202 — 202 — — — 202 Other (1) — — — 1 — 1 — 132 132 133 Total loans modified $ 150 $ 38 $ 188 $ 252 $ 3 $ 255 $ 129 $ 215 $ 344 $ 787 % of total class of receivables 0.11 % 0.62 % 0.14 % 0.33 % 0.18 % 0.33 % 0.35 % 0.38 % 0.37 % 0.25 % __________ (1) Primarily consists of modifications or combinations of modifications not categorized above, such as increases in committed exposure, forbearances and other types of modifications in Commercial Banking. Table 4.7: Financial Effects of Financial Difficulty Modifications to Borrowers Three Months Ended March 31, 2024 Credit Card Consumer Banking Commercial Banking Domestic Card International Card Businesses Auto Retail Banking Commercial and Multifamily Real Estate Commercial and Industrial Weighted-average interest rate reduction 19.99% 26.12% 8.65% —% 0.79% —% Payment delay duration (in months) 12 — 6 10 6 12 Principal balance reduction — — — — — $15 Three Months Ended March 31, 2023 Credit Card Consumer Banking Commercial Banking Domestic Card International Card Businesses Auto Retail Banking Commercial and Multifamily Real Estate Commercial and Industrial Weighted-average interest rate reduction 19.02% 25.74% 8.75% —% —% —% Payment delay duration (in months) — — 6 14 8 7 Principal balance reduction — — — — — $3 For the interim reporting period ended March 31, 2024, the delinquency status as of this date is shown in the table below for FDMs entered into over the preceding 12 month period. For the interim reporting period ended March 31, 2023, the delinquency status as of this date is shown in the table below for FDMs entered into during the first three months of 2023. Table 4.8 Delinquency Status of Loan Modifications to Borrowers Experiencing Financial Difficulty (1) March 31, 2024 Delinquent Loans (Dollars in millions) Current 30-59 Days 60-89 Days > 90 Days Total Delinquent Loans Total Loans Credit Card: Domestic credit card $ 407 $ 67 $ 56 $ 116 $ 239 $ 646 International card businesses 53 10 10 33 53 106 Total credit card 460 77 66 149 292 752 Consumer Banking: Auto 626 93 54 19 166 792 Retail banking 9 0 1 0 1 10 Total consumer banking 635 93 55 19 167 802 Commercial Banking: Commercial and multifamily real estate 556 0 0 22 22 578 Commercial and industrial 842 0 27 31 58 900 Total commercial banking 1,398 0 27 53 80 1,478 Total $ 2,493 $ 170 $ 148 $ 221 $ 539 $ 3,032 March 31, 2023 Delinquent Loans (Dollars in millions) Current 30-59 Days 60-89 Days > 90 Days Total Delinquent Loans Total Loans Credit Card: Domestic credit card $ 62 $ 36 $ 23 $ 29 $ 88 $ 150 International card businesses 11 5 4 18 27 38 Total credit card 73 41 27 47 115 188 Consumer Banking: Auto 224 18 7 3 28 252 Retail banking 2 0 0 1 1 3 Total consumer banking 226 18 7 4 29 255 Commercial Banking: Commercial and multifamily real estate 99 30 0 0 30 129 Commercial and industrial 129 0 0 86 86 215 Total commercial banking 228 30 0 86 116 344 Total $ 527 $ 89 $ 34 $ 137 $ 260 $ 787 __________ (1) Commitments to lend additional funds on FDMs totaled $190 million and $26 million as of March 31, 2024 and 2023, respectively. |
Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods | The following table presents FDMs that entered subsequent default for the three months ended March 31, 2024. FDMs that entered default subsequent to their modification were insignificant during the three months ended March 31, 2023. Table 4.9 Subsequent Defaults of Financial Difficulty Modifications to Borrowers Three Months Ended March 31, 2024 (Dollars in millions) Interest Rate Reduction Term Extension Interest Rate Reduction and Term Extension Total Loans Credit Card: Domestic credit card $ 74 $ 0 $ 1 $ 75 International card businesses 17 0 0 17 Total credit card 91 0 1 92 Consumer Banking: Auto 0 3 103 106 Total consumer banking 0 3 103 106 Commercial Banking: Commercial and multifamily real estate 0 0 0 0 Commercial and industrial 0 67 0 67 Total commercial banking 0 67 0 67 Total $ 91 $ 70 $ 104 $ 265 |
Allowance for Credit Losses a_2
Allowance for Credit Losses and Reserve for Unfunded Lending Commitments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance for Credit Losses on Financing Receivables | The table below summarizes changes in the allowance for credit losses and reserve for unfunded lending commitments by portfolio segment for the three months ended March 31, 2024 and 2023. Our allowance for credit losses increased by $84 million to $15.4 billion as of March 31, 2024 from December 31, 2023 . Table 5.1: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity Three Months Ended March 31, 2024 (Dollars in millions) Credit Card Consumer Banking Commercial Banking Total Allowance for credit losses: Balance as of December 31, 2023 $ 11,709 $ 2,042 $ 1,545 $ 15,296 Charge-offs (2,574) (660) (39) (3,273) Recoveries (1) 367 280 10 657 Net charge-offs (2,207) (380) (29) (2,616) Provision for credit losses 2,259 426 22 2,707 Allowance build (release) for credit losses 52 46 (7) 91 Other changes (2) (7) 0 0 (7) Balance as of March 31, 2024 11,754 2,088 1,538 15,380 Reserve for unfunded lending commitments: Balance as of December 31, 2023 0 0 158 158 Provision (benefit) for losses on unfunded lending commitments 0 0 (24) (24) Balance as of March 31, 2024 0 0 134 134 Combined allowance and reserve as of March 31, 2024 $ 11,754 $ 2,088 $ 1,672 $ 15,514 Three Months Ended March 31, 2023 (Dollars in millions) Credit Card Consumer Banking Commercial Banking Total Allowance for credit losses: Balance as of December 31, 2022 $ 9,545 $ 2,237 $ 1,458 $ 13,240 Cumulative effects of accounting standards adoption (3) (63) 0 0 (63) Balance as of January 1, 2023 9,482 2,237 1,458 13,177 Charge-offs (1,688) (531) (24) (2,243) Recoveries (1) 319 224 3 546 Net charge-offs (1,369) (307) (21) (1,697) Provision for credit losses 2,261 275 266 2,802 Allowance build (release) for credit losses 892 (32) 245 1,105 Other changes (4) 36 0 0 36 Balance as of March 31, 2023 10,410 2,205 1,703 14,318 Reserve for unfunded lending commitments: Balance as of December 31, 2022 0 0 218 218 Provision (benefit) for losses on unfunded lending commitments 0 0 (7) (7) Balance as of March 31, 2023 0 0 211 211 Combined allowance and reserve as of March 31, 2023 $ 10,410 $ 2,205 $ 1,914 $ 14,529 ________ (1) The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications, repossession of collateral, the periodic sale of charged off loans as well as additional strategies, such as litigation. (2) Primarily represents foreign currency translation adjustments. (3) Impact from the adoption of ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDR”) and Vintage Disclosures as of January 1, 2023. (4) Primarily represents the initial allowance for purchased credit-deteriorated (“PCD”) loans. The initial allowance of PCD loans was $32 million for the three months ended March 31, 2023. |
Credit Quality Indicator | The table below presents our credit card portfolio by delinquency status as of March 31, 2024 and December 31, 2023. Table 4.3: Credit Card Delinquency Status March 31, 2024 December 31, 2023 (Dollars in millions) Revolving Loans Revolving Loans Converted to Term Total Revolving Loans Revolving Loans Converted to Term Total Credit Card: Domestic credit card: Current $ 137,043 $ 373 $ 137,416 $ 140,521 $ 339 $ 140,860 30-59 days 1,709 26 1,735 1,940 28 1,968 60-89 days 1,352 19 1,371 1,454 17 1,471 Greater than 90 days 3,313 26 3,339 3,339 28 3,367 Total domestic credit card 143,417 444 143,861 147,254 412 147,666 International card businesses: Current 6,368 33 6,401 6,521 31 6,552 30-59 days 108 5 113 112 4 116 60-89 days 71 4 75 72 4 76 Greater than 90 days 139 5 144 132 5 137 Total international card businesses 6,686 47 6,733 6,837 44 6,881 Total credit card $ 150,103 $ 491 $ 150,594 $ 154,091 $ 456 $ 154,547 The table below presents our consumer banking portfolio of loans held for investment by credit quality indicator as of March 31, 2024 and December 31, 2023. We present our auto loan portfolio by Fair Isaac Corporation (“FICO”) scores at origination and our retail banking loan portfolio by delinquency status, which includes all past due loans, both performing and nonperforming. Table 4.4: Consumer Banking Portfolio by Vintage Year March 31, 2024 Term Loans by Vintage Year (Dollars in millions) 2024 2023 2022 2021 2020 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total Auto — At origination FICO scores: (1) Greater than 660 $ 4,180 $ 11,141 $ 11,433 $ 8,457 $ 2,654 $ 1,132 $ 38,997 $ 0 $ 0 $ 38,997 621-660 1,367 4,526 4,030 2,974 1,148 600 14,645 0 0 14,645 620 or below 1,865 6,228 5,036 3,807 2,024 1,199 20,159 0 0 20,159 Total auto 7,412 21,895 20,499 15,238 5,826 2,931 73,801 0 0 73,801 Retail banking—Delinquency status: Current 69 77 92 56 62 554 910 355 4 1,269 30-59 days 0 0 0 1 0 2 3 8 0 11 60-89 days 0 0 0 0 0 1 1 2 0 3 Greater than 90 days 0 0 0 0 1 7 8 5 2 15 Total retail banking 69 77 92 57 63 564 922 370 6 1,298 Total consumer banking $ 7,481 $ 21,972 $ 20,591 $ 15,295 $ 5,889 $ 3,495 $ 74,723 $ 370 $ 6 $ 75,099 December 31, 2023 Term Loans by Vintage Year (Dollars in millions) 2023 2022 2021 2020 2019 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total Auto — At origination FICO scores: (1) Greater than 660 $ 12,219 $ 12,593 $ 9,505 $ 3,124 $ 1,213 $ 309 $ 38,963 $ 0 $ 0 $ 38,963 621-660 4,863 4,432 3,346 1,337 592 192 14,762 0 0 14,762 620 or below 6,647 5,539 4,283 2,349 1,131 401 20,350 0 0 20,350 Total auto 23,729 22,564 17,134 6,810 2,936 902 74,075 0 0 74,075 Retail banking—Delinquency status: Current 98 157 57 65 117 468 962 363 4 1,329 30-59 days 1 0 1 1 0 1 4 11 0 15 60-89 days 0 0 0 0 0 1 1 2 0 3 Greater than 90 days 0 0 0 0 0 8 8 6 1 15 Total retail banking 99 157 58 66 117 478 975 382 5 1,362 Total consumer banking $ 23,828 $ 22,721 $ 17,192 $ 6,876 $ 3,053 $ 1,380 $ 75,050 $ 382 $ 5 $ 75,437 __________ (1) Amounts 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. The following table presents our commercial banking portfolio of loans held for investment by internal risk ratings as of March 31, 2024 and December 31, 2023. The internal risk rating status includes all past due loans, both performing and nonperforming. Table 4.5: Commercial Banking Portfolio by Internal Risk Ratings March 31, 2024 Term Loans by Vintage Year (Dollars in millions) 2024 2023 2022 2021 2020 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total Internal risk rating: (1) Commercial and multifamily real estate Noncriticized $ 646 $ 2,794 $ 4,392 $ 2,573 $ 994 $ 5,280 $ 16,679 $ 13,046 $ 25 $ 29,750 Criticized performing 53 59 1,501 685 220 1,331 3,849 130 2 3,981 Criticized nonperforming 12 60 45 118 0 299 534 7 0 541 Total commercial and multifamily real estate 711 2,913 5,938 3,376 1,214 6,910 21,062 13,183 27 34,272 Commercial and industrial Noncriticized 1,037 6,784 11,627 6,701 3,341 7,339 36,829 14,096 129 51,054 Criticized performing 42 328 638 672 126 437 2,243 1,284 1 3,528 Criticized nonperforming 0 12 96 41 178 221 548 59 0 607 Total commercial and industrial 1,079 7,124 12,361 7,414 3,645 7,997 39,620 15,439 130 55,189 Total commercial banking $ 1,790 $ 10,037 $ 18,299 $ 10,790 $ 4,859 $ 14,907 $ 60,682 $ 28,622 $ 157 $ 89,461 December 31, 2023 Term Loans by Vintage Year (Dollars in millions) 2023 2022 2021 2020 2019 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total Internal risk rating: (1) Commercial and multifamily real estate Noncriticized $ 3,068 $ 4,665 $ 2,773 $ 1,019 $ 2,104 $ 3,670 $ 17,299 $ 12,565 $ 25 $ 29,889 Criticized performing 148 1,494 706 284 463 904 3,999 133 0 4,132 Criticized nonperforming 65 26 124 0 47 163 425 0 0 425 Total commercial and multifamily real estate 3,281 6,185 3,603 1,303 2,614 4,737 21,723 12,698 25 34,446 Commercial and industrial Noncriticized 6,909 11,935 6,994 3,566 2,359 5,117 36,880 14,822 167 51,869 Criticized performing 353 706 655 237 348 349 2,648 1,189 0 3,837 Criticized nonperforming 13 53 30 18 123 68 305 31 0 336 Total commercial and industrial 7,275 12,694 7,679 3,821 2,830 5,534 39,833 16,042 167 56,042 Total commercial banking $ 10,556 $ 18,879 $ 11,282 $ 5,124 $ 5,444 $ 10,271 $ 61,556 $ 28,740 $ 192 $ 90,488 __________ (1) Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities. The table below presents gross charge-offs for loans held for investment by vintage year during the three months ended March 31, 2024. Table 5.2: Gross Charge-Offs by Vintage Year Three Months Ended March 31, 2024 Term Loans by Vintage Year (Dollars in millions) 2024 2023 2022 2021 2020 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total Credit Card Domestic credit card N/A N/A N/A N/A N/A N/A N/A $ 2,422 $ 30 $ 2,452 International card business N/A N/A N/A N/A N/A N/A N/A 119 3 122 Total credit card N/A N/A N/A N/A N/A N/A N/A 2,541 33 2,574 Consumer Banking Auto $ 4 $ 138 $ 218 $ 163 $ 68 $ 51 $ 642 0 0 642 Retail banking 0 0 0 0 0 0 0 18 0 18 Total consumer banking 4 138 218 163 68 51 642 18 0 660 Commercial Banking Commercial and multifamily real estate 0 0 0 0 0 27 27 0 0 27 Commercial and industrial 0 0 0 4 8 0 12 0 0 12 Total commercial banking 0 0 0 4 8 27 39 0 0 39 Total $ 4 $ 138 $ 218 $ 167 $ 76 $ 78 $ 681 $ 2,559 $ 33 $ 3,273 |
Schedule of Loss Sharing Arrangement Impact | The table below summarizes the changes in the estimated reimbursements from these partners for the three months ended March 31, 2024 and 2023. Table 5.3: Summary of Credit Card Partnership Loss Sharing Arrangements Impacts Three Months Ended March 31, (Dollars in millions) 2024 2023 Estimated reimbursements from partners, beginning of period $ 2,014 $ 1,558 Amounts due from partners for charged off loans (324) (201) Change in estimated partner reimbursements that decreased provision for credit losses 385 484 Estimated reimbursements from partners, end of period $ 2,075 $ 1,841 |
Variable Interest Entities an_2
Variable Interest Entities and Securitizations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Variable Interest Entities and Securitization [Abstract] | |
Carrying Amount of Assets and Liabilities of Variable Interest Entities | The tables below present a summary of VIEs in which we had continuing involvement or held a significant variable interest, aggregated based on VIEs with similar characteristics as of March 31, 2024 and December 31, 2023. We separately present information for consolidated and unconsolidated VIEs. Table 6.1: Carrying Amount of Consolidated and Unconsolidated VIEs March 31, 2024 Consolidated Unconsolidated (Dollars in millions) Carrying Amount of Assets Carrying Amount of Liabilities Carrying Amount of Assets Carrying Amount of Liabilities Maximum Exposure to Loss Securitization-Related VIEs: (1) Credit card loan securitizations (2) $ 24,393 $ 14,692 $ 0 $ 0 $ 0 Auto loan securitizations 4,491 3,655 0 0 0 Total securitization-related VIEs 28,884 18,347 0 0 0 Other VIEs: (3) Affordable housing entities 295 23 5,650 2,001 5,650 Entities that provide capital to low-income and rural communities 2,872 10 0 0 0 Other (4) 0 0 411 0 411 Total other VIEs 3,167 33 6,061 2,001 6,061 Total VIEs $ 32,051 $ 18,380 $ 6,061 $ 2,001 $ 6,061 December 31, 2023 Consolidated Unconsolidated (Dollars in millions) Carrying Amount of Assets Carrying Amount of Liabilities Carrying Amount of Assets Carrying Amount of Liabilities Maximum Exposure to Loss Securitization-Related VIEs: (1) Credit card loan securitizations (2) $ 25,474 $ 14,692 $ 0 $ 0 $ 0 Auto loan securitizations 5,019 4,021 0 0 0 Total securitization-related VIEs 30,493 18,713 0 0 0 Other VIEs: (3) Affordable housing entities 297 23 5,726 2,085 5,726 Entities that provide capital to low-income and rural communities 2,498 10 0 0 0 Other (4) 0 0 449 0 449 Total other VIEs 2,795 33 6,175 2,085 6,175 Total VIEs $ 33,288 $ 18,746 $ 6,175 $ 2,085 $ 6,175 __________ (1) Excludes insignificant VIEs from previously exited businesses. (2) Represents the carrying amount of assets and liabilities of the VIE, which includes the seller’s interest and repurchased notes held by other related parties. (3) In certain investment structures, we consolidate a VIE which in turn holds as its primary asset an investment in an unconsolidated VIE. In these instances, we disclose the carrying amount of assets and liabilities on our consolidated balance sheets as unconsolidated VIEs to avoid duplicating our exposure, as the unconsolidated VIEs are generally the operating entities generating the exposure. The carrying amount of assets and liabilities included in the unconsolidated VIE columns above related to these investment structures were $2.6 billion of assets and $984 million of liabilities as of March 31, 2024, and $2.6 billion of assets and $989 million of liabilities as of December 31, 2023. (4) Primarily consists of variable interests in companies that promote renewable energy sources and other equity method investments. |
External Debt and Receivable Balances of Securitization Programs | The table below presents our continuing involvement in certain securitization-related VIEs as of March 31, 2024 and December 31, 2023. Table 6.2: Continuing Involvement in Securitization-Related VIEs (Dollars in millions) Credit Card Auto March 31, 2024: Securities held by third-party investors $ 14,013 $ 3,648 Receivables in the trusts 25,273 4,304 Cash balance of spread or reserve accounts 0 19 Retained interests Yes Yes Servicing retained Yes Yes December 31, 2023: Securities held by third-party investors $ 14,029 $ 4,014 Receivables in the trusts 26,404 4,839 Cash balance of spread or reserve accounts 0 19 Retained interests Yes Yes Servicing retained Yes Yes |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Goodwill, Intangible Assets and MSRs | The table below presents our goodwill, other intangible assets and MSRs as of March 31, 2024 and December 31, 2023. Goodwill is presented separately, while other intangible assets and MSRs are included in other assets on our consolidated balance sheets. Table 7.1: Components of Goodwill, Other Intangible Assets and MSRs March 31, 2024 (Dollars in millions) Carrying Amount of Assets Accumulated Amortization Net Carrying Amount Goodwill $ 15,062 N/A $ 15,062 Other intangible assets: Purchased credit card relationship (“PCCR”) intangibles 369 $ (113) 256 Other (1) 134 (100) 34 Total other intangible assets 503 (213) 290 Total goodwill and other intangible assets $ 15,565 $ (213) $ 15,352 Commercial MSRs (2) $ 654 $ (277) $ 377 December 31, 2023 (Dollars in millions) Carrying Amount of Assets Accumulated Amortization Net Carrying Amount Goodwill $ 15,065 N/A $ 15,065 Other intangible assets: Purchased credit card relationship (“PCCR”) intangibles 369 $ (96) 273 Other (1) 171 (134) 37 Total other intangible assets 540 (230) 310 Total goodwill and other intangible assets $ 15,605 $ (230) $ 15,375 Commercial MSRs (2) $ 653 $ (263) $ 390 __________ (1) Primarily consists of intangibles for sponsorship, customer and merchant relationships, domain names and licenses. (2) |
Goodwill by Business Segments | The following table presents changes in the carrying amount of goodwill by each of our business segments as of March 31, 2024 and December 31, 2023. Table 7.2: Goodwill by Business Segments (Dollars in millions) Credit Card Consumer Banking Commercial Banking Total Balance as of December 31, 2023 $ 5,366 $ 4,645 $ 5,054 $ 15,065 Other adjustments (1) (3) 0 0 (3) Balance as of March 31, 2024 $ 5,363 $ 4,645 $ 5,054 $ 15,062 __________ (1) Primarily represents foreign currency translation adjustments. |
Deposits and Borrowings (Tables
Deposits and Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Components of Deposits, Short-Term Borrowings and Long-Term Debt | The following tables summarize the components of our deposits, short-term borrowings and long-term debt as of March 31, 2024 and December 31, 2023. The carrying value presented below for these borrowings includes any unamortized debt premiums and discounts, net of debt issuance costs and fair value hedge accounting adjustments. Table 8.1: Components of Deposits, Short-Term Borrowings and Long-Term Debt (Dollars in millions) March 31, 2024 December 31, 2023 Deposits: Non-interest-bearing deposits $ 27,617 $ 28,024 Interest-bearing deposits (1) 323,352 320,389 Total deposits $ 350,969 $ 348,413 Short-term borrowings: Federal funds purchased and securities loaned or sold under agreements to repurchase $ 568 $ 538 Total short-term borrowings $ 568 $ 538 March 31, 2024 December 31, 2023 (Dollars in millions) Maturity Dates Stated Interest Rates Weighted-Average Interest Rate Carrying Value Carrying Value Long-term debt: Securitized debt obligations 2024-2028 0.55% - 6.13% 3.00% $ 17,661 $ 18,043 Senior and subordinated notes: Fixed unsecured senior debt (2) 2024-2035 0.80 - 7.62 4.57 28,063 27,168 Floating unsecured senior debt 2025 6.68 6.68 349 349 Total unsecured senior debt 4.60 28,412 27,517 Fixed unsecured subordinated debt 2025-2032 2.36 - 4.20 3.57 3,696 3,731 Total senior and subordinated notes 32,108 31,248 Other long-term borrowings 2024-2031 0.49 - 9.91 6.64 24 27 Total long-term debt $ 49,793 $ 49,318 Total short-term borrowings and long-term debt $ 50,361 $ 49,856 __________ (1) Some customers have time deposits in excess of the federal deposit insurance limit, making a portion of the deposit uninsured. As of March 31, 2024, the total time deposit amount with some portion in excess of the insured amount was $13.1 billion and the portion of total time deposits estimated to be uninsured was $8.4 billion . As of December 31, 2023, the total time deposit amount with some portion in excess of the insured amount was $15.8 billion and the portion of total time deposits estimated to be uninsured was $9.0 billion. (2) Includes $1.3 billion of Euro (“EUR”) denominated unsecured notes as of both March 31, 2024 and December 31, 2023. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets and Liabilities at Fair Value | The following table summarizes the notional amounts and fair values of our derivative instruments as of March 31, 2024 and December 31, 2023, which are segregated by derivatives that are designated as accounting hedges and those that are not, and are further segregated by type of contract within those two categories. The total derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and any associated cash collateral received or pledged. Derivative assets and liabilities are included in other assets and other liabilities, respectively, on our consolidated balance sheets, and their related gains or losses are included in operating activities as changes in other assets and other liabilities in the consolidated statements of cash flows. Table 9.1: Derivative Assets and Liabilities at Fair Value March 31, 2024 December 31, 2023 Notional or Contractual Amount Derivative (1) Notional or Contractual Amount Derivative (1) (Dollars in millions) Assets Liabilities Assets Liabilities Derivatives designated as accounting hedges: Interest rate contracts: Fair value hedges $ 69,607 $ 4 $ 26 $ 68,987 $ 18 $ 26 Cash flow hedges 79,300 134 20 70,350 216 23 Total interest rate contracts 148,907 138 46 139,337 234 49 Foreign exchange contracts: Fair value hedges 1,349 0 135 1,380 0 113 Cash flow hedges 2,431 11 1 2,488 0 66 Net investment hedges 4,814 18 41 4,870 1 89 Total foreign exchange contracts 8,594 29 177 8,738 1 268 Total derivatives designated as accounting hedges 157,501 167 223 148,075 235 317 Derivatives not designated as accounting hedges: Customer accommodation: Interest rate contracts 101,903 1,224 1,474 103,489 1,188 1,382 Commodity contracts 34,638 1,174 1,172 33,495 1,161 1,147 Foreign exchange and other contracts 5,108 43 28 5,153 50 47 Total customer accommodation 141,649 2,441 2,674 142,137 2,399 2,576 Other interest rate exposures (2) 1,878 21 30 872 21 31 Other contracts 3,074 20 7 2,955 20 8 Total derivatives not designated as accounting hedges 146,601 2,482 2,711 145,964 2,440 2,615 Total derivatives $ 304,102 $ 2,649 $ 2,934 $ 294,039 $ 2,675 $ 2,932 Less: netting adjustment (3) (1,050) (440) (1,005) (597) Total derivative assets/liabilities $ 1,599 $ 2,494 $ 1,670 $ 2,335 __________ (1) Does not reflect $1 million and $2 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of March 31, 2024 and December 31, 2023, respectively. Non-performance risk is included in derivative assets and liabilities, which are part of other assets and other liabilities on the consolidated balance sheets, and is offset through non-interest income in the consolidated statements of income. (2) Other interest rate exposures include commercial mortgage-related derivatives and interest rate swaps. (3) Represents balance sheet netting of derivative assets and liabilities, and related payables and receivables for cash collateral held or placed with the same counterparty. |
Hedged Item in Fair Value Hedging Relationship | The following table summarizes the carrying value of our hedged assets and liabilities in fair value hedges and the associated cumulative basis adjustments included in those carrying values, excluding basis adjustments related to foreign currency risk, as of March 31, 2024 and December 31, 2023. Table 9.2: Hedged Items in Fair Value Hedging Relationships March 31, 2024 December 31, 2023 Carrying Amount Assets/(Liabilities) Cumulative Amount of Basis Adjustments Included in the Carrying Amount Carrying Amount Assets/(Liabilities) Cumulative Amount of Basis Adjustments Included in the Carrying Amount (Dollars in millions) Total Assets/(Liabilities) Discontinued-Hedging Relationships Total Assets/(Liabilities) Discontinued-Hedging Relationships Line item on our consolidated balance sheets in which the hedged item is included: Investment securities available for sale (1)(2) $ 6,022 $ (48) $ 109 $ 6,108 $ (8) $ 126 Interest-bearing deposits (16,991) 348 0 (17,374) 277 0 Securitized debt obligations (13,358) 523 0 (13,375) 503 0 Senior and subordinated notes (31,758) 1,325 (332) (30,899) 971 (372) __________ (1) These amounts include the amortized cost basis of our investment securities designated in hedging relationships for which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. The amortized cost basis of this portfolio was $1.9 billion and $2.2 billion as of March 31, 2024 and December 31, 2023 , respectively. The amount of the designated hedged items was $1.3 billion and $1.5 billion as of March 31, 2024 and December 31, 2023 , respectively. The cumulative basis adjustments associated with these hedges was $10 million and $33 million as of March 31, 2024 and December 31, 2023 , respectively. (2) |
Offsetting Assets | The following table presents the gross and net fair values of our derivative assets, derivative liabilities, resale and repurchase agreements and the related offsetting amounts permitted under U.S. GAAP as of March 31, 2024 and December 31, 2023. The table also includes cash and non-cash collateral received or pledged in accordance with such arrangements. The amount of collateral presented, however, is limited to the amount of the related net derivative fair values or outstanding balances; therefore, instances of over-collateralization are excluded. Table 9.3: Offsetting of Financial Assets and Financial Liabilities Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts as Recognized Securities Collateral Held Under Master Netting Agreements Net Exposure (Dollars in millions) Financial Instruments Cash Collateral Received As of March 31, 2024 Derivative assets (1) $ 2,649 $ (268) $ (782) $ 1,599 $ (19) $ 1,580 As of December 31, 2023 Derivative assets (1) 2,675 (433) (572) 1,670 (22) 1,648 Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts as Recognized Securities Collateral Pledged Under Master Netting Agreements Net Exposure (Dollars in millions) Financial Instruments Cash Collateral Pledged As of March 31, 2024 Derivative liabilities (1) $ 2,934 $ (268) $ (172) $ 2,494 $ (24) $ 2,470 Repurchase agreements (2) 568 0 0 568 (568) 0 As of December 31, 2023 Derivative liabilities (1) 2,932 (433) (164) 2,335 (13) 2,322 Repurchase agreements (2) 538 0 0 538 (538) 0 __________ (1) We received cash collateral from derivative counterparties totaling $1.1 billion and $858 million as of March 31, 2024 and December 31, 2023 , respectively. We also received securities from derivative counterparties with a fair value of approximately $13 million and $16 million as of March 31, 2024 and December 31, 2023 , respectively, which we have the ability to re-pledge. We posted $1.6 billion and $1.7 billion of cash collateral as of March 31, 2024 and December 31, 2023 , respectively. (2) Under our customer repurchase agreements, which mature the next business day, we pledged collateral with a fair value of $579 million and $549 million as of March 31, 2024 and December 31, 2023 , respectively, primarily consisting of agency RMBS securities. |
Offsetting Liabilities | The following table presents the gross and net fair values of our derivative assets, derivative liabilities, resale and repurchase agreements and the related offsetting amounts permitted under U.S. GAAP as of March 31, 2024 and December 31, 2023. The table also includes cash and non-cash collateral received or pledged in accordance with such arrangements. The amount of collateral presented, however, is limited to the amount of the related net derivative fair values or outstanding balances; therefore, instances of over-collateralization are excluded. Table 9.3: Offsetting of Financial Assets and Financial Liabilities Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts as Recognized Securities Collateral Held Under Master Netting Agreements Net Exposure (Dollars in millions) Financial Instruments Cash Collateral Received As of March 31, 2024 Derivative assets (1) $ 2,649 $ (268) $ (782) $ 1,599 $ (19) $ 1,580 As of December 31, 2023 Derivative assets (1) 2,675 (433) (572) 1,670 (22) 1,648 Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts as Recognized Securities Collateral Pledged Under Master Netting Agreements Net Exposure (Dollars in millions) Financial Instruments Cash Collateral Pledged As of March 31, 2024 Derivative liabilities (1) $ 2,934 $ (268) $ (172) $ 2,494 $ (24) $ 2,470 Repurchase agreements (2) 568 0 0 568 (568) 0 As of December 31, 2023 Derivative liabilities (1) 2,932 (433) (164) 2,335 (13) 2,322 Repurchase agreements (2) 538 0 0 538 (538) 0 __________ (1) We received cash collateral from derivative counterparties totaling $1.1 billion and $858 million as of March 31, 2024 and December 31, 2023 , respectively. We also received securities from derivative counterparties with a fair value of approximately $13 million and $16 million as of March 31, 2024 and December 31, 2023 , respectively, which we have the ability to re-pledge. We posted $1.6 billion and $1.7 billion of cash collateral as of March 31, 2024 and December 31, 2023 , respectively. (2) Under our customer repurchase agreements, which mature the next business day, we pledged collateral with a fair value of $579 million and $549 million as of March 31, 2024 and December 31, 2023 , respectively, primarily consisting of agency RMBS securities. |
Effects of Fair Value and Cash Flow Hedge Accounting | The net gains (losses) recognized in our consolidated statements of income related to derivatives in fair value and cash flow hedging relationships are presented below for the three months ended March 31, 2024 and 2023. Table 9.4: Effects of Fair Value and Cash Flow Hedge Accounting Three Months Ended March 31, 2024 Net Interest Income Non-Interest Income (Dollars in millions) Investment Securities Loans, Including Loans Held for Sale Other Interest-bearing Deposits Securitized Debt Obligations Senior and Subordinated Notes Other Total amounts presented in our consolidated statements of income $ 687 $ 9,920 $ 570 $ (2,812) $ (261) $ (606) $ 307 Fair value hedging relationships: Interest rate and foreign exchange contracts: Interest recognized on derivatives $ 45 $ 0 $ 0 $ (107) $ (118) $ (267) $ 0 Gains (losses) recognized on derivatives 21 0 0 (71) (19) (316) (31) Gains (losses) recognized on hedged items (1) (39) 0 0 71 19 356 31 Excluded component of fair value hedges (2) 0 0 0 0 0 (1) 0 Net income (expense) recognized on fair value hedges $ 27 $ 0 $ 0 $ (107) $ (118) $ (228) $ 0 Cash flow hedging relationships: (3) Interest rate contracts: Realized gains (losses) reclassified from AOCI into net income $ 0 $ (309) $ 0 $ 0 $ 0 $ 0 $ 0 Foreign exchange contracts: Realized gains (losses) reclassified from AOCI into net income (4) 0 0 2 0 0 0 0 Net income (expense) recognized on cash flow hedges $ 0 $ (309) $ 2 $ 0 $ 0 $ 0 $ 0 Three Months Ended March 31, 2023 Net Interest Income Non-Interest Income (Dollars in millions) Investment Securities Loans, Including Loans Held for Sale Other Interest-bearing Deposits Securitized Debt Obligations Senior and Subordinated Notes Other Total amounts presented in our consolidated statements of income $ 615 $ 8,723 $ 416 $ (1,856) $ (211) $ (489) $ 199 Fair value hedging relationships: Interest rate and foreign exchange contracts: Interest recognized on derivatives $ 33 $ 0 $ 0 $ (78) $ (84) $ (220) $ 0 Gains (losses) recognized on derivatives (49) 0 0 178 148 387 17 Gains (losses) recognized on hedged items (1) 31 0 0 (180) (149) (355) (17) Excluded component of fair value hedges (2) 0 0 0 0 0 (1) 0 Net income (expense) recognized on fair value hedges $ 15 $ 0 $ 0 $ (80) $ (85) $ (189) $ 0 Cash flow hedging relationships: (3) Interest rate contracts: Realized gains (losses) reclassified from AOCI into net income $ 0 $ (262) $ 0 $ 0 $ 0 $ 0 $ 0 Foreign exchange contracts: Realized gains (losses) reclassified from AOCI into net income (4) 0 0 3 0 0 0 0 Net income (expense) recognized on cash flow hedges $ 0 $ (262) $ 3 $ 0 $ 0 $ 0 $ 0 _________ (1) Includes amortization benefit of $23 million and $15 million for the three months ended March 31, 2024 and 2023, respectively, related to basis adjustments on discontinued hedges. (2) Changes in fair values of cross-currency swaps attributable to changes in cross-currency basis spreads are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income (“OCI”). The initial value of the excluded component is recognized in earnings over the life of the swap under the amortization approach. (3) See “Note 10—Stockholders’ Equity” for the effects of cash flow and net investment hedges on AOCI and amounts reclassified to net income, net of tax. (4) We recognized a gain of $73 million and loss of $8 million for the three months ended March 31, 2024 and 2023, respectively, on foreign exchange contracts reclassified from AOCI. These amounts were largely offset by the foreign currency transaction gains (losses) on our foreign currency denominated intercompany funding included in other non-interest income on our consolidated statements of income . |
Gains (Losses) on Free-Standing Derivatives | The net impacts to our consolidated statements of income related to free-standing derivatives are presented below for the three months ended March 31, 2024 and 2023. These gains or losses are recognized in other non-interest income on our consolidated statements of income. Table 9.5: Gains (Losses) on Free-Standing Derivatives Three Months Ended March 31, (Dollars in millions) 2024 2023 Gains (losses) recognized in other non-interest income: Customer accommodation: Interest rate contracts $ 7 $ 8 Commodity contracts 4 8 Foreign exchange and other contracts 6 3 Total customer accommodation 17 19 Other interest rate exposures 68 52 Other contracts (11) (5) Total $ 74 $ 66 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Preferred Stock | The following table summarizes our preferred stock outstanding as of March 31, 2024 and December 31, 2023. Table 10.1: Preferred Stock Outstanding (1) Redeemable by Issuer Beginning Per Annum Dividend Rate Dividend Frequency Liquidation Preference per Share Total Shares Outstanding Carrying Value Series Description Issuance Date March 31, 2024 December 31, 2023 Series I 5.000% September 11, 2019 December 1, 2024 5.000% Quarterly $ 1,000 1,500,000 $ 1,462 $ 1,462 Series J 4.800% January 31, June 1, 2025 4.800 Quarterly 1,000 1,250,000 1,209 1,209 Series K 4.625% September 17, 2020 December 1, 2025 4.625 Quarterly 1,000 125,000 122 122 Series L 4.375% May 4, September 1, 2026 4.375 Quarterly 1,000 675,000 652 652 Series M 3.950% Fixed Rate Reset June 10, September 1, 2026 3.950% through 8/31/2026; resets 9/1/2026 and every subsequent 5 year anniversary at 5-Year Treasury Rate +3.157% Quarterly 1,000 1,000,000 988 988 Series N 4.250% July 29, September 1, 2026 4.250% Quarterly 1,000 425,000 412 412 Total $ 4,845 $ 4,845 __________ (1) Except for Series M , ownership is held in the form of depositary shares, each representing a 1/40th interest in a share of fixed-rate non-cumulative perpetual preferred stock. |
Change in AOCI Gain (Loss) by Component (Net of Tax) | The following table presents the changes in AOCI by component for the three months ended March 31, 2024 and 2023. Table 10.2: AOCI (Dollars in millions) Securities Available for Sale Hedging Relationships (1) Foreign Currency Translation Adjustments (2) Other Total AOCI as of December 31, 2023 $ (6,769) $ (1,493) $ 26 $ (32) $ (8,268) Other comprehensive income (loss) before reclassifications (844) (587) (13) 1 (1,443) Amounts reclassified from AOCI into earnings 0 177 0 0 177 Other comprehensive income (loss), net of tax (844) (410) (13) 1 (1,266) AOCI as of March 31, 2024 $ (7,613) $ (1,903) $ 13 $ (31) $ (9,534) (Dollars in millions) Securities Available for Sale Hedging Relationships (1) Foreign Currency Translation Adjustments (2) Other Total AOCI as of December 31, 2022 $ (7,676) $ (2,182) $ (20) $ (38) $ (9,916) Other comprehensive income (loss) before reclassifications 962 198 13 0 1,173 Amounts reclassified from AOCI into earnings 0 203 0 0 203 Other comprehensive income (loss), net of tax 962 401 13 0 1,376 AOCI as of March 31, 2023 $ (6,714) $ (1,781) $ (7) $ (38) $ (8,540) __________ (1) Includes amounts related to cash flow hedges as well as the excluded component of cross-currency swaps designated as fair value hedges. (2) Includes other comprehensive gains of $49 million and losses of $38 million for the three months ended March 31, 2024 and 2023 , respectively, from hedging instruments designated as net investment hedges. |
Reclassifications from AOCI | The following table presents amounts reclassified from each component of AOCI to our consolidated statements of income for the three months ended March 31, 2024 and 2023. Table 10.3: Reclassifications from AOCI (Dollars in millions) Three Months Ended March 31, AOCI Components Affected Income Statement Line Item 2024 2023 Securities available for sale: Non-interest income (loss) $ 0 $ 0 Income tax provision (benefit) 0 0 Net income (loss) 0 0 Hedging relationships: Interest rate contracts: Interest income (loss) (309) (262) Foreign exchange contracts: Interest income 2 3 Interest expense (1) (1) Non-interest income (loss) 74 (8) Income (loss) from continuing operations before income taxes (234) (268) Income tax provision (benefit) (57) (65) Net income (loss) (177) (203) Other: Non-interest income and non-interest expense 0 0 Income tax provision (benefit) 0 0 Net income 0 0 Total reclassifications $ (177) $ (203) |
Components of Other Comprehensive Income (Loss) and Related Tax Impact | The table below summarizes other comprehensive income (loss) activity and the related tax impact for the three months ended March 31, 2024 and 2023. Table 10.4: Other Comprehensive Income (Loss) Three Months Ended March 31, 2024 2023 (Dollars in millions) Before Provision After Before Provision After Other comprehensive income (loss): Net unrealized gains (losses) on securities available for sale $ (1,115) $ (271) $ (844) $ 1,267 $ 305 $ 962 Net unrealized gains (losses) on hedging relationships (542) (132) (410) 528 127 401 Foreign currency translation adjustments (1) 3 16 (13) 1 (12) 13 Other 1 0 1 0 0 0 Other comprehensive income (loss) $ (1,653) $ (387) $ (1,266) $ 1,796 $ 420 $ 1,376 __________ (1) Includes the impact of hedging instruments designated as net investment hedges. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share. Table 11.1: Computation of Basic and Diluted Earnings per Common Share Three Months Ended March 31, (Dollars and shares in millions, except per share data) 2024 2023 Net income $ 1,280 $ 960 Dividends and undistributed earnings allocated to participating securities (23) (16) Preferred stock dividends (57) (57) Net income available to common stockholders $ 1,200 $ 887 Total weighted-average basic common shares outstanding 382.2 382.6 Effect of dilutive securities: (1) Stock options 0.2 0.1 Other contingently issuable shares 1.0 1.1 Total effect of dilutive securities 1.2 1.2 Total weighted-average diluted common shares outstanding 383.4 383.8 Basic earnings per common share: Net income per basic common share $ 3.14 $ 2.32 Diluted earnings per common share: (1) Net income per diluted common share $ 3.13 $ 2.31 __________ (1) Excluded from the computation of diluted earnings per share were awards of 128 thousand shares and 40 thousand shares for the three months ended March 31, 2024 and 2023, respectively, because their inclusion would be anti-dilutive. There were no options excluded from the computation for the three months ended March 31, 2024 and 2023. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Table 12.1: Assets and Liabilities Measured at Fair Value on a Recurring Basis March 31, 2024 Fair Value Measurements Using Netting Adjustments (1) (Dollars in millions) Level 1 Level 2 Level 3 Total Assets: Securities available for sale: U.S. Treasury securities $ 5,728 $ 0 $ 0 0 $ 5,728 RMBS 0 62,089 309 0 62,398 CMBS 0 8,064 129 0 8,193 Other securities 170 1,909 0 0 2,079 Total securities available for sale 5,898 72,062 438 0 78,398 Loans held for sale 0 1,212 0 0 1,212 Other assets: Derivative assets (2) 733 942 974 $ (1,050) 1,599 Other (3) 649 3 35 0 687 Total assets $ 7,280 $ 74,219 $ 1,447 $ (1,050) $ 81,896 Liabilities: Other liabilities: Derivative liabilities (2) $ 593 $ 1,421 $ 920 $ (440) $ 2,494 Total liabilities $ 593 $ 1,421 $ 920 $ (440) $ 2,494 December 31, 2023 Fair Value Measurements Using Netting Adjustments (1) (Dollars in millions) Level 1 Level 2 Level 3 Total Assets: Securities available for sale: U.S. Treasury securities $ 5,282 $ 0 $ 0 0 $ 5,282 RMBS 0 63,492 146 0 63,638 CMBS 0 8,191 132 0 8,323 Other securities 126 1,748 0 0 1,874 Total securities available for sale 5,408 73,431 278 0 79,117 Loans held for sale 0 347 0 0 347 Other assets: Derivative assets (2) 788 1,001 886 $ (1,005) 1,670 Other (3) 589 3 35 0 627 Total assets $ 6,785 $ 74,782 $ 1,199 $ (1,005) $ 81,761 Liabilities: Other liabilities: Derivative liabilities (2) $ 449 $ 1,655 $ 828 $ (597) $ 2,335 Total liabilities $ 449 $ 1,655 $ 828 $ (597) $ 2,335 __________ (1) Represents balance sheet netting of derivative assets and liabilities, and related payables and receivables for cash collateral held or placed with the same counterparty. See “Note 9—Derivative Instruments and Hedging Activities” for additional information. (2) Does not reflec t approximate ly $1 million and $2 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of March 31, 2024 and December 31, 2023, respectively. Non-performance risk is included in the measurement of derivative assets and liabilities on our consolidated balance sheets, and is recorded through non-interest income in the consolidated statements of income. (3) As of March 31, 2024 and December 31, 2023, other includes retained interests in securitizations o f $35 million and $35 million, deferred compensation plan assets of $646 million and $578 million, and equity securities of $6 million (including unrealized gains of $1 million) and $14 million (including unrealized gains of $5 million), respectively. |
Schedule of Level 3 Inputs Reconciliation | The table below presents a reconciliation for all assets and liabilities measured and recognized at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2024 and 2023. Generally, transfers into Level 3 were primarily driven by the usage of unobservable assumptions in the pricing of these financial instruments as evidenced by wider pricing variations among pricing vendors and transfers out of Level 3 were primarily driven by the usage of assumptions corroborated by market observable information as evidenced by tighter pricing among multiple pricing sources. Table 12.2: Level 3 Recurring Fair Value Rollforward Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three Months Ended March 31, 2024 Total Gains (Losses) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of March 31, 2024 (1) (Dollars in millions) Balance, January 1, 2024 Included in Net Income (1) Included in OCI Purchases Sales Issuances Settlements Transfers Transfers Balance, March 31, 2024 Securities available for sale: (2) RMBS $ 146 $ 2 $ 0 $ 0 $ 0 $ 0 $ (3) $ 182 $ (18) $ 309 $ 2 CMBS 132 0 (2) 0 0 0 (1) 0 0 129 0 Total securities available for sale 278 2 (2) 0 0 0 (4) 182 (18) 438 2 Other assets: Retained interests in securitizations 35 0 0 0 0 0 0 0 0 35 0 Net derivative assets (liabilities) (3) 58 6 0 0 0 (5) (5) 0 0 54 (1) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three Months Ended March 31, 2023 Total Gains (Losses) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of March 31, 2023 (1) (Dollars in millions) Balance, January 1, 2023 Included in Net Income (1) Included in OCI Purchases Sales Issuances Settlements Transfers Transfers Balance, March 31, 2023 Securities available for sale: (2) RMBS $ 236 $ 1 $ 3 $ 0 $ 0 $ 0 $ (5) $ 34 $ (22) $ 247 $ 2 CMBS 142 0 5 0 0 0 (2) 0 0 145 0 Total securities available for sale 378 1 8 0 0 0 (7) 34 (22) 392 2 Other assets: Retained interests in securitizations 36 0 0 0 0 0 0 0 0 36 0 Net derivative assets (liabilities) (3)(4) 5 (5) 0 0 0 104 12 (97) (1) 18 4 _________ (1) Realized gains (losses) on securities available for sale are included in net securities gains (losses) and retained interests in securitizations are reported as a component of non-interest income in our consolidated statements of income. Gains (losses) on derivatives are included as a component of net interest income or non-interest income in our consolidated statements of income. (2) Net unrealized losses included in OCI related to Level 3 securities available for sale still held as of both March 31, 2024 and March 31, 2023 were $8 million. (3) Includes derivative assets and liabilities of $974 million and $920 million, respectively, as of March 31, 2024 and $837 million and $819 million, respectively, as of March 31, 2023. (4) Transfers into Level 3 primarily consist of term Secured Overnight Financing Rate (“SOFR”)-indexed interest rate derivatives. |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis Quantitative Information | The following table presents the significant unobservable inputs used to determine the fair values of our Level 3 financial instruments on a recurring basis. We utilize multiple vendor pricing services to obtain fair value for our securities. Several of our vendor pricing services are only able to provide unobservable input information for a limited number of securities due to software licensing restrictions. Other vendor pricing services are able to provide unobservable input information for all securities for which they provide a valuation. As a result, the unobservable input information for the securities available for sale presented below represents a composite summary of all information we are able to obtain. The unobservable input information for all other Level 3 financial instruments is based on the assumptions used in our internal valuation models. Table 12.3: Quantitative Information about Level 3 Fair Value Measurements Quantitative Information about Level 3 Fair Value Measurements (Dollars in millions) Fair Value at Significant Significant Range Weighted Average (1) Securities available for sale: RMBS $ 309 Discounted cash flows (vendor pricing) Yield 5-14% 0-12% 0-10% 30-80% 6% 7% 2% 61% CMBS 129 Discounted cash flows (vendor pricing) Yield 6-7% 6% Other assets: Retained interests in securitizations (2) 35 Discounted cash flows Life of receivables (months) 31-73 9% 5%-13% 1% 54%-155% N/A Net derivative assets (liabilities) 54 Discounted cash flows Swap rates 4-5% 4% Quantitative Information about Level 3 Fair Value Measurements (Dollars in millions) Fair Value at Significant Significant Range Weighted Average (1) Securities available for sale: RMBS $ 146 Discounted cash flows (vendor pricing) Yield 2-19% 0-12% 0-10% 30-80% 7% 7% 1% 61% CMBS 132 Discounted cash flows (vendor pricing) Yield 5-7% 5% Other assets: Retained interests in securitizations (2) 35 Discounted cash flows Life of receivables (months) 33-69 9% 5-14% 2% 53-163% N/A Net derivative assets (liabilities) 58 Discounted cash flows Swap rates 3-5% 4% __________ (1) Weighted averages are calculated by using the product of the input multiplied by the relative fair value of the instruments. (2) Due to the nature of the various mortgage securitization structures in which we have retained interests, it is not meaningful to present a consolidated weighted average for the significant unobservable inputs. |
Schedule of Assets Measured at Fair Value on Nonrecurring Basis | The following table presents the carrying value of the assets measured at fair value on a nonrecurring basis and still held as of March 31, 2024 and December 31, 2023, and for which a nonrecurring fair value measurement was recorded during the three and twelve months then ended. Table 12.4: Nonrecurring Fair Value Measurements March 31, 2024 Estimated Fair Value Hierarchy Total (Dollars in millions) Level 2 Level 3 Loans held for investment $ 0 $ 361 $ 361 Loans held for sale 10 0 10 Other assets (1) 0 86 86 Total $ 10 $ 447 $ 457 December 31, 2023 Estimated Fair Value Hierarchy Total (Dollars in millions) Level 2 Level 3 Loans held for investment $ 0 $ 545 $ 545 Loans held for sale 37 0 37 Other assets (1) 0 214 214 Total $ 37 $ 759 $ 796 __________ (1) As of March 31, 2024, other assets included investments accounted for under measurement alternative of $31 million and repossessed assets of $55 million. As of December 31, 2023, other assets included investments accounted for under measurement alternative of $46 million, repossessed assets of $45 million and long-lived assets held for sale and right-of-use assets totaling $123 million. |
Schedule of Earnings Related to Assets Measured at Fair Value on Nonrecurring Basis | The following table presents total nonrecurring fair value measurements for the period, included in earnings, attributable to the change in fair value relating to assets that are still held at March 31, 2024 and 2023. Table 12.5: Nonrecurring Fair Value Measurements Included in Earnings Total Gains (Losses) Three Months Ended March 31, (Dollars in millions) 2024 2023 Loans held for investment $ (127) $ (105) Loans held for sale (10) 0 Other assets (1) (63) (37) Total $ (200) $ (142) __________ (1) Other assets include fair value adjustments related to repossessed assets, long-lived assets held for sale and right-of-use assets, and equity investments accounted for under the measurement alternative. |
Schedule of Fair Value of Financial Instruments | The following table presents the carrying value and estimated fair value, including the level within the fair value hierarchy, of our financial instruments that are not measured at fair value on a recurring basis on our consolidated balance sheets as of March 31, 2024 and December 31, 2023 . Table 12.6: Fair Value of Financial Instruments March 31, 2024 Carrying Estimated Estimated Fair Value Hierarchy (Dollars in millions) Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 51,028 $ 51,028 $ 4,671 $ 46,357 $ 0 Restricted cash for securitization investors 474 474 474 0 0 Net loans held for investment 299,774 302,943 0 0 302,943 Loans held for sale 419 431 0 431 0 Interest receivable 2,514 2,514 0 2,514 0 Other investments (1) 1,329 1,329 0 1,329 0 Financial liabilities: Deposits with defined maturities 75,749 75,583 0 75,583 0 Securitized debt obligations 17,661 17,703 0 17,703 0 Senior and subordinated notes 32,108 32,894 0 32,894 0 Federal funds purchased and securities loaned or sold under agreements to repurchase 568 568 0 568 0 Interest payable 762 762 0 762 0 December 31, 2023 Carrying Estimated Estimated Fair Value Hierarchy (Dollars in millions) Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 43,297 $ 43,297 $ 4,903 $ 38,394 $ 0 Restricted cash for securitization investors 458 458 458 0 0 Net loans held for investment 305,176 308,044 0 0 308,044 Loans held for sale 507 515 0 515 0 Interest receivable 2,478 2,478 0 2,478 0 Other investments (1) 1,329 1,329 0 1,329 0 Financial liabilities: Deposits with defined maturities 83,014 82,990 0 82,990 0 Securitized debt obligations 18,043 18,067 0 18,067 0 Senior and subordinated notes 31,248 31,524 0 31,524 0 Federal funds purchased and securities loaned or sold under agreements to repurchase 538 538 0 538 0 Interest payable 649 649 0 649 0 __________ (1) Other investments include FHLB and Federal Reserve stock. These investments are included in other assets on our consolidated balance sheets. |
Business Segments and Revenue_2
Business Segments and Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Results and Reconciliation | The following table presents our business segment results for the three months ended March 31, 2024 and 2023, selected balance sheet data as of March 31, 2024 and 2023, and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, loans held for investment and deposits. Table 13.1: Segment Results and Reconciliation Three Months Ended March 31, 2024 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total Net interest income (loss) $ 5,272 $ 2,011 $ 599 $ (394) $ 7,488 Non-interest income (loss) 1,476 159 281 (2) 1,914 Total net revenue (loss) (2) 6,748 2,170 880 (396) 9,402 Provision (benefit) for credit losses 2,259 426 (2) 0 2,683 Non-interest expense 3,229 1,246 515 147 5,137 Income (loss) from continuing operations before income taxes 1,260 498 367 (543) 1,582 Income tax provision (benefit) 299 117 87 (201) 302 Income (loss) from continuing operations, net of tax $ 961 $ 381 $ 280 $ (342) $ 1,280 Loans held for investment $ 150,594 $ 75,099 $ 89,461 $ 0 $ 315,154 Deposits 0 300,806 31,082 19,081 350,969 Three Months Ended March 31, 2023 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total Net interest income (loss) $ 4,657 $ 2,360 $ 648 $ (479) $ 7,186 Non-interest income 1,363 135 212 7 1,717 Total net revenue (loss) (2) 6,020 2,495 860 (472) 8,903 Provision (benefit) for credit losses 2,261 275 259 0 2,795 Non-interest expense 3,038 1,283 530 94 4,945 Income (loss) from continuing operations before income taxes 721 937 71 (566) 1,163 Income tax provision (benefit) 172 221 17 (207) 203 Income (loss) from continuing operations, net of tax $ 549 $ 716 $ 54 $ (359) $ 960 Loans held for investment $ 137,142 $ 78,151 $ 93,543 $ 0 $ 308,836 Deposits 0 291,163 38,380 20,284 349,827 _________ (1) Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category. (2) Total net revenue was reduced by $630 million and $405 million in the first quarters of 2024 and 2023, respectively, for credit card finance charges and fees charged off as uncollectible. |
Disaggregation of Revenue | The following table presents revenue from contracts with customers and a reconciliation to non-interest income by business segment for the three months ended March 31, 2024 and 2023. Table 13.2: Revenue from Contracts with Customers and Reconciliation to Segment Results Three Months Ended March 31, 2024 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total Contract revenue: Interchange fees, net (2) $ 1,020 $ 98 $ 27 $ 0 $ 1,145 Service charges and other customer-related fees 0 4 74 0 78 Other 121 44 2 0 167 Total contract revenue 1,141 146 103 0 1,390 Revenue (reduction) from other sources 335 13 178 (2) 524 Total non-interest income (loss) $ 1,476 $ 159 $ 281 $ (2) $ 1,914 Three Months Ended March 31, 2023 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total Contract revenue: Interchange fees, net (2) $ 1,025 $ 86 $ 27 $ 1 $ 1,139 Service charges and other customer-related fees 0 21 40 (1) 60 Other 55 19 5 0 79 Total contract revenue 1,080 126 72 0 1,278 Revenue from other sources 283 9 140 7 439 Total non-interest income $ 1,363 $ 135 $ 212 $ 7 $ 1,717 __________ (1) Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reductions to the Other category. (2) |
Commitments, Contingencies, G_2
Commitments, Contingencies, Guarantees and Others (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Letter of Credit and Other Loan Commitments | The following table presents the contractual amount and carrying value of our unfunded lending commitments as of March 31, 2024 and December 31, 2023. The carrying value represents our reserve and deferred revenue on legally binding commitments. Table 14.1: Unfunded Lending Commitments Contractual Amount Carrying Value (Dollars in millions) March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Credit card lines $ 404,968 $ 392,867 N/A N/A Other loan commitments (1) 46,169 46,951 $ 67 $ 99 Standby letters of credit and commercial letters of credit (2) 1,421 1,465 25 23 Total unfunded lending commitments $ 452,558 $ 441,283 $ 92 $ 122 __________ (1) Includes $4.5 billion and $4.7 billion of advised lines of credit as of March 31, 2024 and December 31, 2023, respectively. (2) These financial guarantees have expiration dates that range from 2024 to 2026 as of March 31, 2024. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Segments (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 3 |
Business Combinations (Details)
Business Combinations (Details) | Feb. 19, 2024 shares |
Business Acquisition [Line Items] | |
Entity shares issued (in shares) | 1.0192 |
Discover | Series D Preferred Stock | |
Business Acquisition [Line Items] | |
Per annum dividend rate | 6.125% |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Accrued interest receivable | $ 248,000,000 | $ 227,000,000 | ||
Proceeds from sale of debt securities, available-for-sale | $ 0 | $ 0 | ||
Investment securities | 40,700,000,000 | 45,100,000,000 | 40,700,000,000 | |
Securities received as collateral | $ 13,000,000 | $ 16,000,000 | $ 13,000,000 | |
Investment securities available for sale | Government Contracts Concentration Risk | US Treasury and Agency securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Percentage of portfolio | 96% | 97% |
Investment Securities - Investm
Investment Securities - Investment Available for Sale (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 88,459 | $ 88,063 |
Allowance for Credit Losses | (4) | (4) |
Gross Unrealized Gains | 186 | 214 |
Gross Unrealized Losses | (10,243) | (9,156) |
Fair Value | 78,398 | 79,117 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,764 | 5,330 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 3 | 1 |
Gross Unrealized Losses | (39) | (49) |
Fair Value | 5,728 | 5,282 |
RMBS, Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 71,153 | 71,294 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 74 | 104 |
Gross Unrealized Losses | (9,506) | (8,450) |
Fair Value | 61,721 | 62,948 |
RMBS, Non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 600 | 610 |
Allowance for Credit Losses | (4) | (4) |
Gross Unrealized Gains | 86 | 89 |
Gross Unrealized Losses | (5) | (5) |
Fair Value | 677 | 690 |
Total RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 71,753 | 71,904 |
Allowance for Credit Losses | (4) | (4) |
Gross Unrealized Gains | 160 | 193 |
Gross Unrealized Losses | (9,511) | (8,455) |
Fair Value | 62,398 | 63,638 |
Agency CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,867 | 8,961 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 19 | 14 |
Gross Unrealized Losses | (693) | (652) |
Fair Value | 8,193 | 8,323 |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,075 | 1,868 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 4 | 6 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2,079 | 1,874 |
Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 1,600 | $ 1,400 |
Investment Securities - Securit
Investment Securities - Securities in Gross Unrealized Loss Position (Details) $ in Millions | Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) security |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less than 12 Months | $ 4,603 | $ 5,068 |
Gross Unrealized Loss - Less than 12 Months | (42) | (50) |
Fair Value - 12 Months or Longer | 62,633 | 62,711 |
Gross Unrealized Loss - 12 Months or Longer | (10,197) | (9,102) |
Fair Value - Total | 67,236 | 67,779 |
Gross Unrealized Loss - Total | $ (10,239) | $ (9,152) |
Number of securities in gross unrealized loss positions | security | 2,770 | 2,740 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less than 12 Months | $ 443 | $ 733 |
Gross Unrealized Loss - Less than 12 Months | (1) | 0 |
Fair Value - 12 Months or Longer | 2,099 | 2,242 |
Gross Unrealized Loss - 12 Months or Longer | (38) | (49) |
Fair Value - Total | 2,542 | 2,975 |
Gross Unrealized Loss - Total | (39) | (49) |
RMBS, Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less than 12 Months | 3,213 | 3,511 |
Gross Unrealized Loss - Less than 12 Months | (36) | (43) |
Fair Value - 12 Months or Longer | 53,912 | 53,987 |
Gross Unrealized Loss - 12 Months or Longer | (9,470) | (8,407) |
Fair Value - Total | 57,125 | 57,498 |
Gross Unrealized Loss - Total | (9,506) | (8,450) |
RMBS, Non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less than 12 Months | 5 | 1 |
Gross Unrealized Loss - Less than 12 Months | 0 | 0 |
Fair Value - 12 Months or Longer | 14 | 13 |
Gross Unrealized Loss - 12 Months or Longer | (1) | (1) |
Fair Value - Total | 19 | 14 |
Gross Unrealized Loss - Total | (1) | (1) |
Total RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less than 12 Months | 3,218 | 3,512 |
Gross Unrealized Loss - Less than 12 Months | (36) | (43) |
Fair Value - 12 Months or Longer | 53,926 | 54,000 |
Gross Unrealized Loss - 12 Months or Longer | (9,471) | (8,408) |
Fair Value - Total | 57,144 | 57,512 |
Gross Unrealized Loss - Total | (9,507) | (8,451) |
Agency CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less than 12 Months | 544 | 547 |
Gross Unrealized Loss - Less than 12 Months | (5) | (7) |
Fair Value - 12 Months or Longer | 6,509 | 6,465 |
Gross Unrealized Loss - 12 Months or Longer | (688) | (645) |
Fair Value - Total | 7,053 | 7,012 |
Gross Unrealized Loss - Total | (693) | (652) |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less than 12 Months | 398 | 276 |
Gross Unrealized Loss - Less than 12 Months | 0 | 0 |
Fair Value - 12 Months or Longer | 99 | 4 |
Gross Unrealized Loss - 12 Months or Longer | 0 | 0 |
Fair Value - Total | 497 | 280 |
Gross Unrealized Loss - Total | $ 0 | $ 0 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities and Weighted-Average Yields of Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Fair value of securities available for sale: | ||
Due in 1 Year or Less | $ 2,761 | |
Due > 1 Year through 5 Years | 7,798 | |
Due > 5 Years through 10 Years | 4,617 | |
Due > 10 Years | 63,222 | |
Total | 78,398 | $ 79,117 |
Amortized cost of securities available for sale | ||
Due in 1 Year or Less | 2,788 | |
Due > 1 Year through 5 Years | 7,986 | |
Due > 5 Years through 10 Years | 5,013 | |
Due > 10 Years | 72,672 | |
Total | $ 88,459 | 88,063 |
Weighted-average yield for securities available for sale | ||
Due in 1 Year or Less | 3.50% | |
Due > 1 Year through 5 Years | 4.43% | |
Due > 5 Years through 10 Years | 3.52% | |
Due > 10 Years | 3.10% | |
Total | 3.26% | |
U.S. Treasury securities | ||
Fair value of securities available for sale: | ||
Due in 1 Year or Less | $ 1,892 | |
Due > 1 Year through 5 Years | 3,542 | |
Due > 5 Years through 10 Years | 294 | |
Due > 10 Years | 0 | |
Total | 5,728 | 5,282 |
Amortized cost of securities available for sale | ||
Total | 5,764 | 5,330 |
RMBS, Agency | ||
Fair value of securities available for sale: | ||
Due in 1 Year or Less | 2 | |
Due > 1 Year through 5 Years | 92 | |
Due > 5 Years through 10 Years | 1,073 | |
Due > 10 Years | 60,554 | |
Total | 61,721 | 62,948 |
Amortized cost of securities available for sale | ||
Total | 71,153 | 71,294 |
RMBS, Non-agency | ||
Fair value of securities available for sale: | ||
Due in 1 Year or Less | 0 | |
Due > 1 Year through 5 Years | 0 | |
Due > 5 Years through 10 Years | 5 | |
Due > 10 Years | 672 | |
Total | 677 | 690 |
Amortized cost of securities available for sale | ||
Total | 600 | 610 |
Total RMBS | ||
Fair value of securities available for sale: | ||
Due in 1 Year or Less | 2 | |
Due > 1 Year through 5 Years | 92 | |
Due > 5 Years through 10 Years | 1,078 | |
Due > 10 Years | 61,226 | |
Total | 62,398 | 63,638 |
Amortized cost of securities available for sale | ||
Total | $ 71,753 | 71,904 |
Weighted-average yield for securities available for sale | ||
Weighted-average expected life | 7 years 9 months 18 days | |
Agency CMBS | ||
Fair value of securities available for sale: | ||
Due in 1 Year or Less | $ 494 | |
Due > 1 Year through 5 Years | 2,482 | |
Due > 5 Years through 10 Years | 3,221 | |
Due > 10 Years | 1,996 | |
Total | 8,193 | 8,323 |
Amortized cost of securities available for sale | ||
Total | $ 8,867 | 8,961 |
Weighted-average yield for securities available for sale | ||
Weighted-average expected life | 4 years 4 months 24 days | |
Other securities | ||
Fair value of securities available for sale: | ||
Due in 1 Year or Less | $ 373 | |
Due > 1 Year through 5 Years | 1,682 | |
Due > 5 Years through 10 Years | 24 | |
Due > 10 Years | 0 | |
Total | 2,079 | 1,874 |
Amortized cost of securities available for sale | ||
Total | $ 2,075 | $ 1,868 |
Loans - Additional Information
Loans - Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Number of portfolio segments | segment | 3 | ||
Accrued interest receivable | $ 2,200 | $ 2,200 | |
Net loans held for investment | 299,774 | 305,176 | |
Federal Home Loan banks | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Net loans held for investment | 7,400 | 7,400 | |
Remaining borrowing capacity | 36,700 | 32,100 | |
Federal Reserve Discount Window | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Net loans held for investment | 74,100 | 78,300 | |
Remaining borrowing capacity | 38,800 | $ 41,400 | |
Domestic credit card: | Domestic Credit Card and Commercial Banking Portfolios | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Revolving loans converted to term during period | $ 116 | $ 183 |
Loans - Loan Portfolio Composit
Loans - Loan Portfolio Composition and Aging Analysis (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Current | $ 303,586 | $ 307,695 |
Total | $ 315,154 | $ 320,472 |
Current, percentage of total loans | 96.33% | 96.01% |
Percentage of total loans | 100% | 100% |
Unamortized premiums and discounts, deferred fees and costs | $ 1,300 | $ 1,400 |
Credit Card: | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 143,817 | 147,412 |
Total | 150,594 | 154,547 |
Consumer Banking: | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 70,700 | 70,097 |
Total | 75,099 | 75,437 |
Consumer Banking: | Auto | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 69,431 | 68,768 |
Total | 73,801 | 74,075 |
Consumer Banking: | Retail banking | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 1,269 | 1,329 |
Total | 1,298 | 1,362 |
Commercial Banking: | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 89,069 | 90,186 |
Total | 89,461 | 90,488 |
Commercial Banking: | Commercial and multifamily real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 34,050 | 34,325 |
Total | 34,272 | 34,446 |
Commercial Banking: | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 55,019 | 55,861 |
Total | 55,189 | 56,042 |
30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | $ 4,631 | $ 5,367 |
Delinquent Loans, percentage of total loans | 1.47% | 1.68% |
30-59 days | Credit Card: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | $ 1,848 | $ 2,084 |
30-59 days | Consumer Banking: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 2,780 | 3,283 |
30-59 days | Consumer Banking: | Auto | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 2,769 | 3,268 |
30-59 days | Consumer Banking: | Retail banking | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 11 | 15 |
Total | 11 | 15 |
30-59 days | Commercial Banking: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 3 | 0 |
30-59 days | Commercial Banking: | Commercial and multifamily real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 0 | 0 |
30-59 days | Commercial Banking: | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 3 | 0 |
60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | $ 2,816 | $ 3,119 |
Delinquent Loans, percentage of total loans | 0.89% | 0.97% |
60-89 days | Credit Card: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | $ 1,446 | $ 1,547 |
60-89 days | Consumer Banking: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 1,247 | 1,558 |
60-89 days | Consumer Banking: | Auto | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 1,244 | 1,555 |
60-89 days | Consumer Banking: | Retail banking | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 3 | 3 |
Total | 3 | 3 |
60-89 days | Commercial Banking: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 123 | 14 |
60-89 days | Commercial Banking: | Commercial and multifamily real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 94 | 14 |
60-89 days | Commercial Banking: | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 29 | 0 |
Greater than 90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | $ 4,121 | $ 4,291 |
Delinquent Loans, percentage of total loans | 1.31% | 1.34% |
Greater than 90 days | Credit Card: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | $ 3,483 | $ 3,504 |
Greater than 90 days | Consumer Banking: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 372 | 499 |
Greater than 90 days | Consumer Banking: | Auto | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 357 | 484 |
Greater than 90 days | Consumer Banking: | Retail banking | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 15 | 15 |
Total | 15 | 15 |
Greater than 90 days | Commercial Banking: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 266 | 288 |
Greater than 90 days | Commercial Banking: | Commercial and multifamily real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 128 | 107 |
Greater than 90 days | Commercial Banking: | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 138 | 181 |
Total Delinquent Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | $ 11,568 | $ 12,777 |
Total Delinquent Loans, percentage of total loans | 3.67% | 3.99% |
Total Delinquent Loans | Credit Card: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | $ 6,777 | $ 7,135 |
Total Delinquent Loans | Consumer Banking: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 4,399 | 5,340 |
Total Delinquent Loans | Consumer Banking: | Auto | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 4,370 | 5,307 |
Total Delinquent Loans | Consumer Banking: | Retail banking | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 29 | 33 |
Total Delinquent Loans | Commercial Banking: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 392 | 302 |
Total Delinquent Loans | Commercial Banking: | Commercial and multifamily real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 222 | 121 |
Total Delinquent Loans | Commercial Banking: | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 170 | 181 |
Domestic credit card: | Credit Card: | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 137,416 | 140,860 |
Total | 143,861 | 147,666 |
Domestic credit card: | 30-59 days | Credit Card: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 1,735 | 1,968 |
Total | 1,735 | 1,968 |
Domestic credit card: | 60-89 days | Credit Card: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 1,371 | 1,471 |
Total | 1,371 | 1,471 |
Domestic credit card: | Greater than 90 days | Credit Card: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 3,339 | 3,367 |
Total | 3,339 | 3,367 |
Domestic credit card: | Total Delinquent Loans | Credit Card: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 6,445 | 6,806 |
International card businesses: | Credit Card: | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 6,401 | 6,552 |
Total | 6,733 | 6,881 |
International card businesses: | 30-59 days | Credit Card: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 113 | 116 |
Total | 113 | 116 |
International card businesses: | 60-89 days | Credit Card: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 75 | 76 |
Total | 75 | 76 |
International card businesses: | Greater than 90 days | Credit Card: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | 144 | 137 |
Total | 144 | 137 |
International card businesses: | Total Delinquent Loans | Credit Card: | ||
Financing Receivable, Past Due [Line Items] | ||
Delinquent Loans | $ 332 | $ 329 |
Loans - 90+ Day Delinquent Loan
Loans - 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Financing Receivable, Past Due [Line Items] | |||
> 90 Days and Accruing | $ 3,502 | $ 3,554 | |
Nonperforming Loans | 1,783 | 1,528 | |
Nonperforming Loans Without an Allowance | $ 737 | $ 547 | |
Percentage, 90 Days Past Due and Accruing | 1.11% | 1.11% | |
Percentage, Nonperforming Loans | 0.57% | 0.48% | |
Percentage, Nonperforming Loans Without an Allowance | 0.23% | 0.17% | |
Interest income for loans classified as nonperforming | $ 5 | $ 2 | |
Credit Card: | |||
Financing Receivable, Past Due [Line Items] | |||
> 90 Days and Accruing | 3,479 | $ 3,499 | |
Nonperforming Loans | 9 | 9 | |
Nonperforming Loans Without an Allowance | 0 | 0 | |
Credit Card: | Domestic credit card: | |||
Financing Receivable, Past Due [Line Items] | |||
> 90 Days and Accruing | 3,339 | 3,367 | |
Nonperforming Loans Without an Allowance | 0 | 0 | |
Credit Card: | International card businesses: | |||
Financing Receivable, Past Due [Line Items] | |||
> 90 Days and Accruing | 140 | 132 | |
Nonperforming Loans | 9 | 9 | |
Nonperforming Loans Without an Allowance | 0 | 0 | |
Consumer Banking: | |||
Financing Receivable, Past Due [Line Items] | |||
> 90 Days and Accruing | 0 | 0 | |
Nonperforming Loans | 626 | 758 | |
Nonperforming Loans Without an Allowance | 21 | 19 | |
Consumer Banking: | Auto | |||
Financing Receivable, Past Due [Line Items] | |||
> 90 Days and Accruing | 0 | 0 | |
Nonperforming Loans | 585 | 712 | |
Nonperforming Loans Without an Allowance | 0 | 0 | |
Consumer Banking: | Retail banking | |||
Financing Receivable, Past Due [Line Items] | |||
> 90 Days and Accruing | 0 | 0 | |
Nonperforming Loans | 41 | 46 | |
Nonperforming Loans Without an Allowance | 21 | 19 | |
Commercial Banking: | |||
Financing Receivable, Past Due [Line Items] | |||
> 90 Days and Accruing | 23 | 55 | |
Nonperforming Loans | 1,148 | 761 | |
Nonperforming Loans Without an Allowance | 716 | 528 | |
Commercial Banking: | Commercial and multifamily real estate | |||
Financing Receivable, Past Due [Line Items] | |||
> 90 Days and Accruing | 5 | 0 | |
Nonperforming Loans | 541 | 425 | |
Nonperforming Loans Without an Allowance | 369 | 335 | |
Commercial Banking: | Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
> 90 Days and Accruing | 18 | 55 | |
Nonperforming Loans | 607 | 336 | |
Nonperforming Loans Without an Allowance | $ 347 | $ 193 |
Loans - Credit Card Delinquency
Loans - Credit Card Delinquency Status (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | $ 315,154 | $ 320,472 |
Credit Card: | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revolving Loans | 150,103 | 154,091 |
Revolving Loans Converted to Term | 491 | 456 |
Total | 150,594 | 154,547 |
Domestic credit card: | Credit Card: | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revolving Loans | 143,417 | 147,254 |
Revolving Loans Converted to Term | 444 | 412 |
Total | 143,861 | 147,666 |
International card businesses: | Credit Card: | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revolving Loans | 6,686 | 6,837 |
Revolving Loans Converted to Term | 47 | 44 |
Total | 6,733 | 6,881 |
Current | Domestic credit card: | Credit Card: | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revolving Loans | 137,043 | 140,521 |
Revolving Loans Converted to Term | 373 | 339 |
Total | 137,416 | 140,860 |
Current | International card businesses: | Credit Card: | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revolving Loans | 6,368 | 6,521 |
Revolving Loans Converted to Term | 33 | 31 |
Total | 6,401 | 6,552 |
30-59 days | Domestic credit card: | Credit Card: | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revolving Loans | 1,709 | 1,940 |
Revolving Loans Converted to Term | 26 | 28 |
Total | 1,735 | 1,968 |
30-59 days | International card businesses: | Credit Card: | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revolving Loans | 108 | 112 |
Revolving Loans Converted to Term | 5 | 4 |
Total | 113 | 116 |
60-89 days | Domestic credit card: | Credit Card: | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revolving Loans | 1,352 | 1,454 |
Revolving Loans Converted to Term | 19 | 17 |
Total | 1,371 | 1,471 |
60-89 days | International card businesses: | Credit Card: | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revolving Loans | 71 | 72 |
Revolving Loans Converted to Term | 4 | 4 |
Total | 75 | 76 |
Greater than 90 days | Domestic credit card: | Credit Card: | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revolving Loans | 3,313 | 3,339 |
Revolving Loans Converted to Term | 26 | 28 |
Total | 3,339 | 3,367 |
Greater than 90 days | International card businesses: | Credit Card: | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Revolving Loans | 139 | 132 |
Revolving Loans Converted to Term | 5 | 5 |
Total | $ 144 | $ 137 |
Loans - Consumer Banking Portfo
Loans - Consumer Banking Portfolio by Credit Quality Indicator (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 315,154 | $ 320,472 |
Consumer Banking: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 7,481 | 23,828 |
Term Loans by Vintage Year, Year 2 | 21,972 | 22,721 |
Term Loans by Vintage Year, Year 3 | 20,591 | 17,192 |
Term Loans by Vintage Year, Year 4 | 15,295 | 6,876 |
Term Loans by Vintage Year, Year 5 | 5,889 | 3,053 |
Prior | 3,495 | 1,380 |
Total Term Loans | 74,723 | 75,050 |
Revolving Loans | 370 | 382 |
Revolving Loans Converted to Term | 6 | 5 |
Total | 75,099 | 75,437 |
Auto | Consumer Banking: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 7,412 | 23,729 |
Term Loans by Vintage Year, Year 2 | 21,895 | 22,564 |
Term Loans by Vintage Year, Year 3 | 20,499 | 17,134 |
Term Loans by Vintage Year, Year 4 | 15,238 | 6,810 |
Term Loans by Vintage Year, Year 5 | 5,826 | 2,936 |
Prior | 2,931 | 902 |
Total Term Loans | 73,801 | 74,075 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 73,801 | 74,075 |
Retail banking | Consumer Banking: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 69 | 99 |
Term Loans by Vintage Year, Year 2 | 77 | 157 |
Term Loans by Vintage Year, Year 3 | 92 | 58 |
Term Loans by Vintage Year, Year 4 | 57 | 66 |
Term Loans by Vintage Year, Year 5 | 63 | 117 |
Prior | 564 | 478 |
Total Term Loans | 922 | 975 |
Revolving Loans | 370 | 382 |
Revolving Loans Converted to Term | 6 | 5 |
Total | 1,298 | 1,362 |
Current | Retail banking | Consumer Banking: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 69 | 98 |
Term Loans by Vintage Year, Year 2 | 77 | 157 |
Term Loans by Vintage Year, Year 3 | 92 | 57 |
Term Loans by Vintage Year, Year 4 | 56 | 65 |
Term Loans by Vintage Year, Year 5 | 62 | 117 |
Prior | 554 | 468 |
Total Term Loans | 910 | 962 |
Revolving Loans | 355 | 363 |
Revolving Loans Converted to Term | 4 | 4 |
Total | 1,269 | 1,329 |
30-59 days | Retail banking | Consumer Banking: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 0 | 1 |
Term Loans by Vintage Year, Year 2 | 0 | 0 |
Term Loans by Vintage Year, Year 3 | 0 | 1 |
Term Loans by Vintage Year, Year 4 | 1 | 1 |
Term Loans by Vintage Year, Year 5 | 0 | 0 |
Prior | 2 | 1 |
Total Term Loans | 3 | 4 |
Revolving Loans | 8 | 11 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 11 | 15 |
60-89 days | Retail banking | Consumer Banking: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 0 | 0 |
Term Loans by Vintage Year, Year 2 | 0 | 0 |
Term Loans by Vintage Year, Year 3 | 0 | 0 |
Term Loans by Vintage Year, Year 4 | 0 | 0 |
Term Loans by Vintage Year, Year 5 | 0 | 0 |
Prior | 1 | 1 |
Total Term Loans | 1 | 1 |
Revolving Loans | 2 | 2 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 3 | 3 |
Greater than 90 days | Retail banking | Consumer Banking: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 0 | 0 |
Term Loans by Vintage Year, Year 2 | 0 | 0 |
Term Loans by Vintage Year, Year 3 | 0 | 0 |
Term Loans by Vintage Year, Year 4 | 0 | 0 |
Term Loans by Vintage Year, Year 5 | 1 | 0 |
Prior | 7 | 8 |
Total Term Loans | 8 | 8 |
Revolving Loans | 5 | 6 |
Revolving Loans Converted to Term | 2 | 1 |
Total | 15 | 15 |
Greater than 660 | Auto | Consumer Banking: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 4,180 | 12,219 |
Term Loans by Vintage Year, Year 2 | 11,141 | 12,593 |
Term Loans by Vintage Year, Year 3 | 11,433 | 9,505 |
Term Loans by Vintage Year, Year 4 | 8,457 | 3,124 |
Term Loans by Vintage Year, Year 5 | 2,654 | 1,213 |
Prior | 1,132 | 309 |
Total Term Loans | 38,997 | 38,963 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 38,997 | 38,963 |
621-660 | Auto | Consumer Banking: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 1,367 | 4,863 |
Term Loans by Vintage Year, Year 2 | 4,526 | 4,432 |
Term Loans by Vintage Year, Year 3 | 4,030 | 3,346 |
Term Loans by Vintage Year, Year 4 | 2,974 | 1,337 |
Term Loans by Vintage Year, Year 5 | 1,148 | 592 |
Prior | 600 | 192 |
Total Term Loans | 14,645 | 14,762 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 14,645 | 14,762 |
620 or below | Auto | Consumer Banking: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 1,865 | 6,647 |
Term Loans by Vintage Year, Year 2 | 6,228 | 5,539 |
Term Loans by Vintage Year, Year 3 | 5,036 | 4,283 |
Term Loans by Vintage Year, Year 4 | 3,807 | 2,349 |
Term Loans by Vintage Year, Year 5 | 2,024 | 1,131 |
Prior | 1,199 | 401 |
Total Term Loans | 20,159 | 20,350 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total | $ 20,159 | $ 20,350 |
Loans - Commercial Banking_ Ris
Loans - Commercial Banking: Risk Profile by Internal Risk Rating (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans held for investment | $ 315,154 | $ 320,472 |
Commercial Banking: | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 1,790 | 10,556 |
Term Loans by Vintage Year, Year 2 | 10,037 | 18,879 |
Term Loans by Vintage Year, Year 3 | 18,299 | 11,282 |
Term Loans by Vintage Year, Year 4 | 10,790 | 5,124 |
Term Loans by Vintage Year, Year 5 | 4,859 | 5,444 |
Prior | 14,907 | 10,271 |
Total Term Loans | 60,682 | 61,556 |
Revolving Loans | 28,622 | 28,740 |
Revolving Loans Converted to Term | 157 | 192 |
Total loans held for investment | 89,461 | 90,488 |
Commercial Banking: | Commercial and multifamily real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 711 | 3,281 |
Term Loans by Vintage Year, Year 2 | 2,913 | 6,185 |
Term Loans by Vintage Year, Year 3 | 5,938 | 3,603 |
Term Loans by Vintage Year, Year 4 | 3,376 | 1,303 |
Term Loans by Vintage Year, Year 5 | 1,214 | 2,614 |
Prior | 6,910 | 4,737 |
Total Term Loans | 21,062 | 21,723 |
Revolving Loans | 13,183 | 12,698 |
Revolving Loans Converted to Term | 27 | 25 |
Total loans held for investment | 34,272 | 34,446 |
Commercial Banking: | Commercial and multifamily real estate | Noncriticized | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 646 | 3,068 |
Term Loans by Vintage Year, Year 2 | 2,794 | 4,665 |
Term Loans by Vintage Year, Year 3 | 4,392 | 2,773 |
Term Loans by Vintage Year, Year 4 | 2,573 | 1,019 |
Term Loans by Vintage Year, Year 5 | 994 | 2,104 |
Prior | 5,280 | 3,670 |
Total Term Loans | 16,679 | 17,299 |
Revolving Loans | 13,046 | 12,565 |
Revolving Loans Converted to Term | 25 | 25 |
Total loans held for investment | 29,750 | 29,889 |
Commercial Banking: | Commercial and multifamily real estate | Criticized | Criticized performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 53 | 148 |
Term Loans by Vintage Year, Year 2 | 59 | 1,494 |
Term Loans by Vintage Year, Year 3 | 1,501 | 706 |
Term Loans by Vintage Year, Year 4 | 685 | 284 |
Term Loans by Vintage Year, Year 5 | 220 | 463 |
Prior | 1,331 | 904 |
Total Term Loans | 3,849 | 3,999 |
Revolving Loans | 130 | 133 |
Revolving Loans Converted to Term | 2 | 0 |
Total loans held for investment | 3,981 | 4,132 |
Commercial Banking: | Commercial and multifamily real estate | Criticized | Criticized nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 12 | 65 |
Term Loans by Vintage Year, Year 2 | 60 | 26 |
Term Loans by Vintage Year, Year 3 | 45 | 124 |
Term Loans by Vintage Year, Year 4 | 118 | 0 |
Term Loans by Vintage Year, Year 5 | 0 | 47 |
Prior | 299 | 163 |
Total Term Loans | 534 | 425 |
Revolving Loans | 7 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans held for investment | 541 | 425 |
Commercial Banking: | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 1,079 | 7,275 |
Term Loans by Vintage Year, Year 2 | 7,124 | 12,694 |
Term Loans by Vintage Year, Year 3 | 12,361 | 7,679 |
Term Loans by Vintage Year, Year 4 | 7,414 | 3,821 |
Term Loans by Vintage Year, Year 5 | 3,645 | 2,830 |
Prior | 7,997 | 5,534 |
Total Term Loans | 39,620 | 39,833 |
Revolving Loans | 15,439 | 16,042 |
Revolving Loans Converted to Term | 130 | 167 |
Total loans held for investment | 55,189 | 56,042 |
Commercial Banking: | Commercial and industrial | Noncriticized | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 1,037 | 6,909 |
Term Loans by Vintage Year, Year 2 | 6,784 | 11,935 |
Term Loans by Vintage Year, Year 3 | 11,627 | 6,994 |
Term Loans by Vintage Year, Year 4 | 6,701 | 3,566 |
Term Loans by Vintage Year, Year 5 | 3,341 | 2,359 |
Prior | 7,339 | 5,117 |
Total Term Loans | 36,829 | 36,880 |
Revolving Loans | 14,096 | 14,822 |
Revolving Loans Converted to Term | 129 | 167 |
Total loans held for investment | 51,054 | 51,869 |
Commercial Banking: | Commercial and industrial | Criticized | Criticized performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 42 | 353 |
Term Loans by Vintage Year, Year 2 | 328 | 706 |
Term Loans by Vintage Year, Year 3 | 638 | 655 |
Term Loans by Vintage Year, Year 4 | 672 | 237 |
Term Loans by Vintage Year, Year 5 | 126 | 348 |
Prior | 437 | 349 |
Total Term Loans | 2,243 | 2,648 |
Revolving Loans | 1,284 | 1,189 |
Revolving Loans Converted to Term | 1 | 0 |
Total loans held for investment | 3,528 | 3,837 |
Commercial Banking: | Commercial and industrial | Criticized | Criticized nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Term Loans by Vintage Year, Year 1 | 0 | 13 |
Term Loans by Vintage Year, Year 2 | 12 | 53 |
Term Loans by Vintage Year, Year 3 | 96 | 30 |
Term Loans by Vintage Year, Year 4 | 41 | 18 |
Term Loans by Vintage Year, Year 5 | 178 | 123 |
Prior | 221 | 68 |
Total Term Loans | 548 | 305 |
Revolving Loans | 59 | 31 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans held for investment | $ 607 | $ 336 |
Loans - Financing Receivable, M
Loans - Financing Receivable, Modified - Modification to Borrowers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 1,183 | $ 787 |
% of total class of receivables | 0.38% | 0.25% |
Interest rate reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 270 | $ 188 |
Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 459 | 240 |
Principal balance reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 9 | 7 |
Principal balance reduction and term extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 17 | |
Interest Rate Reduction and Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 307 | 202 |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 138 | 133 |
Credit Card: | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 275 | $ 188 |
% of total class of receivables | 0.18% | 0.14% |
Credit Card: | Interest rate reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 270 | $ 188 |
Credit Card: | Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | 0 |
Credit Card: | Principal balance reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | 0 |
Credit Card: | Principal balance reduction and term extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | |
Credit Card: | Interest Rate Reduction and Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 5 | 0 |
Credit Card: | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | 0 |
Credit Card: | Domestic Card | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 221 | $ 150 |
% of total class of receivables | 0.15% | 0.11% |
Credit Card: | Domestic Card | Interest rate reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 216 | $ 150 |
Weighted-average interest rate reduction | 19.99% | 19.02% |
Credit Card: | Domestic Card | Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 0 | $ 0 |
Payment delay duration (in months) | 12 months | |
Credit Card: | Domestic Card | Principal balance reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 0 | 0 |
Principal balance reduction | 0 | 0 |
Credit Card: | Domestic Card | Principal balance reduction and term extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | |
Credit Card: | Domestic Card | Interest Rate Reduction and Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 5 | 0 |
Credit Card: | Domestic Card | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | 0 |
Credit Card: | International card businesses | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 54 | $ 38 |
% of total class of receivables | 0.80% | 0.62% |
Credit Card: | International card businesses | Interest rate reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 54 | $ 38 |
Weighted-average interest rate reduction | 26.12% | 25.74% |
Credit Card: | International card businesses | Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 0 | $ 0 |
Credit Card: | International card businesses | Principal balance reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | 0 |
Principal balance reduction | 0 | 0 |
Credit Card: | International card businesses | Principal balance reduction and term extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | |
Credit Card: | International card businesses | Interest Rate Reduction and Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | 0 |
Credit Card: | International card businesses | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | 0 |
Consumer Banking: | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 292 | $ 255 |
% of total class of receivables | 0.39% | 0.33% |
Consumer Banking: | Interest rate reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 0 | $ 0 |
Consumer Banking: | Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 8 | 45 |
Consumer Banking: | Principal balance reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 9 | 7 |
Consumer Banking: | Principal balance reduction and term extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | |
Consumer Banking: | Interest Rate Reduction and Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 274 | 202 |
Consumer Banking: | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 1 | 1 |
Consumer Banking: | Auto | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 290 | $ 252 |
% of total class of receivables | 0.39% | 0.33% |
Consumer Banking: | Auto | Interest rate reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 0 | $ 0 |
Weighted-average interest rate reduction | 8.65% | 8.75% |
Consumer Banking: | Auto | Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 6 | $ 42 |
Payment delay duration (in months) | 6 months | 6 months |
Consumer Banking: | Auto | Principal balance reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 9 | $ 7 |
Principal balance reduction | 0 | 0 |
Consumer Banking: | Auto | Principal balance reduction and term extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | |
Consumer Banking: | Auto | Interest Rate Reduction and Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 274 | 202 |
Consumer Banking: | Auto | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 1 | 1 |
Consumer Banking: | Retail banking | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 2 | $ 3 |
% of total class of receivables | 0.14% | 0.18% |
Consumer Banking: | Retail banking | Interest rate reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 0 | $ 0 |
Weighted-average interest rate reduction | 0% | 0% |
Consumer Banking: | Retail banking | Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 2 | $ 3 |
Payment delay duration (in months) | 10 months | 14 months |
Consumer Banking: | Retail banking | Principal balance reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 0 | $ 0 |
Principal balance reduction | 0 | 0 |
Consumer Banking: | Retail banking | Principal balance reduction and term extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | |
Consumer Banking: | Retail banking | Interest Rate Reduction and Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | 0 |
Consumer Banking: | Retail banking | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | 0 |
Commercial Banking: | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 616 | $ 344 |
% of total class of receivables | 0.69% | 0.37% |
Commercial Banking: | Interest rate reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 0 | $ 0 |
Commercial Banking: | Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 451 | 195 |
Commercial Banking: | Principal balance reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | 0 |
Commercial Banking: | Principal balance reduction and term extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 17 | |
Commercial Banking: | Interest Rate Reduction and Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 28 | 0 |
Commercial Banking: | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 137 | 132 |
Commercial Banking: | Commercial and multifamily real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 435 | $ 129 |
% of total class of receivables | 1.27% | 0.35% |
Commercial Banking: | Commercial and multifamily real estate | Interest rate reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 0 | $ 0 |
Weighted-average interest rate reduction | 0.79% | 0% |
Commercial Banking: | Commercial and multifamily real estate | Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 316 | $ 129 |
Payment delay duration (in months) | 6 months | 8 months |
Commercial Banking: | Commercial and multifamily real estate | Principal balance reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 0 | $ 0 |
Principal balance reduction | 0 | 0 |
Commercial Banking: | Commercial and multifamily real estate | Principal balance reduction and term extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | |
Commercial Banking: | Commercial and multifamily real estate | Interest Rate Reduction and Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 28 | 0 |
Commercial Banking: | Commercial and multifamily real estate | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 91 | 0 |
Commercial Banking: | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 181 | $ 215 |
% of total class of receivables | 0.33% | 0.38% |
Commercial Banking: | Commercial and industrial | Interest rate reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 0 | $ 0 |
Weighted-average interest rate reduction | 0% | 0% |
Commercial Banking: | Commercial and industrial | Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 135 | $ 66 |
Payment delay duration (in months) | 12 months | 7 months |
Commercial Banking: | Commercial and industrial | Principal balance reduction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 0 | $ 0 |
Principal balance reduction | 15 | 3 |
Commercial Banking: | Commercial and industrial | Principal balance reduction and term extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 17 | |
Commercial Banking: | Commercial and industrial | Interest Rate Reduction and Term Extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | 0 | 0 |
Commercial Banking: | Commercial and industrial | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans modified | $ 46 | $ 132 |
Loans - FDM Disclosure - Modifi
Loans - FDM Disclosure - Modification to Borrowers (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | $ 3,032 | $ 787 |
Commitments to lend on loans modified in TDRs | 190 | 26 |
Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 2,493 | 527 |
30-59 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 170 | 89 |
60-89 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 148 | 34 |
Greater than 90 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 221 | 137 |
Total Delinquent Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 539 | 260 |
Credit Card: | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 752 | 188 |
Credit Card: | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 460 | 73 |
Credit Card: | 30-59 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 77 | 41 |
Credit Card: | 60-89 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 66 | 27 |
Credit Card: | Greater than 90 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 149 | 47 |
Credit Card: | Total Delinquent Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 292 | 115 |
Credit Card: | Domestic Card | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 646 | 150 |
Credit Card: | Domestic Card | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 407 | 62 |
Credit Card: | Domestic Card | 30-59 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 67 | 36 |
Credit Card: | Domestic Card | 60-89 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 56 | 23 |
Credit Card: | Domestic Card | Greater than 90 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 116 | 29 |
Credit Card: | Domestic Card | Total Delinquent Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 239 | 88 |
Credit Card: | International card businesses | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 106 | 38 |
Credit Card: | International card businesses | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 53 | 11 |
Credit Card: | International card businesses | 30-59 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 10 | 5 |
Credit Card: | International card businesses | 60-89 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 10 | 4 |
Credit Card: | International card businesses | Greater than 90 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 33 | 18 |
Credit Card: | International card businesses | Total Delinquent Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 53 | 27 |
Consumer Banking: | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 802 | 255 |
Consumer Banking: | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 635 | 226 |
Consumer Banking: | 30-59 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 93 | 18 |
Consumer Banking: | 60-89 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 55 | 7 |
Consumer Banking: | Greater than 90 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 19 | 4 |
Consumer Banking: | Total Delinquent Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 167 | 29 |
Consumer Banking: | Auto | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 792 | 252 |
Consumer Banking: | Auto | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 626 | 224 |
Consumer Banking: | Auto | 30-59 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 93 | 18 |
Consumer Banking: | Auto | 60-89 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 54 | 7 |
Consumer Banking: | Auto | Greater than 90 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 19 | 3 |
Consumer Banking: | Auto | Total Delinquent Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 166 | 28 |
Consumer Banking: | Retail banking | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 10 | 3 |
Consumer Banking: | Retail banking | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 9 | 2 |
Consumer Banking: | Retail banking | 30-59 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 0 | 0 |
Consumer Banking: | Retail banking | 60-89 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 1 | 0 |
Consumer Banking: | Retail banking | Greater than 90 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 0 | 1 |
Consumer Banking: | Retail banking | Total Delinquent Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 1 | 1 |
Commercial Banking: | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 1,478 | 344 |
Commercial Banking: | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 1,398 | 228 |
Commercial Banking: | 30-59 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 0 | 30 |
Commercial Banking: | 60-89 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 27 | 0 |
Commercial Banking: | Greater than 90 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 53 | 86 |
Commercial Banking: | Total Delinquent Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 80 | 116 |
Commercial Banking: | Commercial and multifamily real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 578 | 129 |
Commercial Banking: | Commercial and multifamily real estate | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 556 | 99 |
Commercial Banking: | Commercial and multifamily real estate | 30-59 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 0 | 30 |
Commercial Banking: | Commercial and multifamily real estate | 60-89 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 0 | 0 |
Commercial Banking: | Commercial and multifamily real estate | Greater than 90 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 22 | 0 |
Commercial Banking: | Commercial and multifamily real estate | Total Delinquent Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 22 | 30 |
Commercial Banking: | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 900 | 215 |
Commercial Banking: | Commercial and industrial | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 842 | 129 |
Commercial Banking: | Commercial and industrial | 30-59 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 0 | 0 |
Commercial Banking: | Commercial and industrial | 60-89 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 27 | 0 |
Commercial Banking: | Commercial and industrial | Greater than 90 days | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | 31 | 86 |
Commercial Banking: | Commercial and industrial | Total Delinquent Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Loans | $ 58 | $ 86 |
Loans - Schedule of Debtor Trou
Loans - Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods (Details) - Entity Loan Modification Program $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | $ 265 |
Interest rate reduction | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 91 |
Term Extension | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 70 |
Interest Rate Reduction and Term Extension | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 104 |
Credit Card: | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 92 |
Credit Card: | Interest rate reduction | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 91 |
Credit Card: | Term Extension | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 0 |
Credit Card: | Interest Rate Reduction and Term Extension | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 1 |
Credit Card: | Domestic credit card: | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 75 |
Credit Card: | Domestic credit card: | Interest rate reduction | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 74 |
Credit Card: | Domestic credit card: | Term Extension | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 0 |
Credit Card: | Domestic credit card: | Interest Rate Reduction and Term Extension | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 1 |
Credit Card: | International card businesses: | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 17 |
Credit Card: | International card businesses: | Interest rate reduction | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 17 |
Credit Card: | International card businesses: | Term Extension | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 0 |
Credit Card: | International card businesses: | Interest Rate Reduction and Term Extension | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 0 |
Consumer Banking: | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 106 |
Consumer Banking: | Auto | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 106 |
Consumer Banking: | Interest rate reduction | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 0 |
Consumer Banking: | Interest rate reduction | Auto | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 0 |
Consumer Banking: | Term Extension | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 3 |
Consumer Banking: | Term Extension | Auto | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 3 |
Consumer Banking: | Interest Rate Reduction and Term Extension | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 103 |
Consumer Banking: | Interest Rate Reduction and Term Extension | Auto | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 103 |
Commercial Banking: | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 67 |
Commercial Banking: | Commercial and multifamily real estate | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 0 |
Commercial Banking: | Commercial and industrial | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 67 |
Commercial Banking: | Interest rate reduction | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 0 |
Commercial Banking: | Interest rate reduction | Commercial and multifamily real estate | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 0 |
Commercial Banking: | Interest rate reduction | Commercial and industrial | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 0 |
Commercial Banking: | Term Extension | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 67 |
Commercial Banking: | Term Extension | Commercial and multifamily real estate | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 0 |
Commercial Banking: | Term Extension | Commercial and industrial | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 67 |
Commercial Banking: | Interest Rate Reduction and Term Extension | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 0 |
Commercial Banking: | Interest Rate Reduction and Term Extension | Commercial and multifamily real estate | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | 0 |
Commercial Banking: | Interest Rate Reduction and Term Extension | Commercial and industrial | |
Financing Receivable, Modified, Subsequent Default [Line Items] | |
Amount | $ 0 |
Allowance for Credit Losses a_3
Allowance for Credit Losses and Reserve for Unfunded Lending Commitments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for credit loss | $ 15,380 | $ 15,296 | ||
Allowance for credit losses | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Increase (decrease) in allowance for credit loss | 84 | |||
Allowance for credit loss | $ 15,380 | $ 15,296 | $ 14,318 | $ 13,240 |
Allowance for Credit Losses a_4
Allowance for Credit Losses and Reserve for Unfunded Lending Commitments - Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of the period | $ 15,296 | |
Provision for credit losses | 2,683 | $ 2,795 |
Balance at the end of the period | 15,380 | |
Allowance for credit loss for purchased credit-deteriorated | 32 | |
Allowance for credit losses | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of the period | 15,296 | 13,240 |
Charge-offs | (3,273) | (2,243) |
Recoveries | 657 | 546 |
Net charge-offs | (2,616) | (1,697) |
Provision for credit losses | 2,707 | 2,802 |
Allowance build (release) for credit losses | 91 | 1,105 |
Other changes | (7) | 36 |
Balance at the end of the period | 15,380 | 14,318 |
Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of the period | (63) | |
Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of the period | 13,177 | |
Reserve for unfunded lending commitments | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of the period | 158 | 218 |
Provision for credit losses | (24) | (7) |
Balance at the end of the period | 134 | 211 |
Combined allowance and reserve | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at the end of the period | 15,514 | 14,529 |
Credit Card: | Allowance for credit losses | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of the period | 11,709 | 9,545 |
Charge-offs | (2,574) | (1,688) |
Recoveries | 367 | 319 |
Net charge-offs | (2,207) | (1,369) |
Provision for credit losses | 2,259 | 2,261 |
Allowance build (release) for credit losses | 52 | 892 |
Other changes | (7) | 36 |
Balance at the end of the period | 11,754 | 10,410 |
Credit Card: | Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of the period | (63) | |
Credit Card: | Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of the period | 9,482 | |
Credit Card: | Reserve for unfunded lending commitments | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of the period | 0 | 0 |
Provision for credit losses | 0 | 0 |
Balance at the end of the period | 0 | 0 |
Credit Card: | Combined allowance and reserve | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at the end of the period | 11,754 | 10,410 |
Consumer Banking: | Allowance for credit losses | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of the period | 2,042 | 2,237 |
Charge-offs | (660) | (531) |
Recoveries | 280 | 224 |
Net charge-offs | (380) | (307) |
Provision for credit losses | 426 | 275 |
Allowance build (release) for credit losses | 46 | (32) |
Other changes | 0 | 0 |
Balance at the end of the period | 2,088 | 2,205 |
Consumer Banking: | Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of the period | 0 | |
Consumer Banking: | Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of the period | 2,237 | |
Consumer Banking: | Reserve for unfunded lending commitments | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of the period | 0 | 0 |
Provision for credit losses | 0 | 0 |
Balance at the end of the period | 0 | 0 |
Consumer Banking: | Combined allowance and reserve | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at the end of the period | 2,088 | 2,205 |
Commercial Banking: | Allowance for credit losses | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of the period | 1,545 | 1,458 |
Charge-offs | (39) | (24) |
Recoveries | 10 | 3 |
Net charge-offs | (29) | (21) |
Provision for credit losses | 22 | 266 |
Allowance build (release) for credit losses | (7) | 245 |
Other changes | 0 | 0 |
Balance at the end of the period | 1,538 | 1,703 |
Commercial Banking: | Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of the period | 0 | |
Commercial Banking: | Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of the period | 1,458 | |
Commercial Banking: | Reserve for unfunded lending commitments | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of the period | 158 | 218 |
Provision for credit losses | (24) | (7) |
Balance at the end of the period | 134 | 211 |
Commercial Banking: | Combined allowance and reserve | ||
Allowance for Credit Losses [Roll Forward] | ||
Balance at the end of the period | $ 1,672 | $ 1,914 |
Allowance for Credit Losses a_5
Allowance for Credit Losses and Reserve for Unfunded Lending Commitments - Charge-Offs (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2024 | $ 4 |
2023 | 138 |
2022 | 218 |
2021 | 167 |
2020 | 76 |
Prior | 78 |
Total Term Loans | 681 |
Revolving Loans | 2,559 |
Revolving Loans Converted to Term | 33 |
Total | 3,273 |
Credit Card: | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Revolving Loans | 2,541 |
Revolving Loans Converted to Term | 33 |
Total | 2,574 |
Credit Card: | Domestic Card | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Revolving Loans | 2,422 |
Revolving Loans Converted to Term | 30 |
Total | 2,452 |
Credit Card: | International card businesses | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Revolving Loans | 119 |
Revolving Loans Converted to Term | 3 |
Total | 122 |
Consumer Banking: | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2024 | 4 |
2023 | 138 |
2022 | 218 |
2021 | 163 |
2020 | 68 |
Prior | 51 |
Total Term Loans | 642 |
Revolving Loans | 18 |
Revolving Loans Converted to Term | 0 |
Total | 660 |
Consumer Banking: | Auto | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2024 | 4 |
2023 | 138 |
2022 | 218 |
2021 | 163 |
2020 | 68 |
Prior | 51 |
Total Term Loans | 642 |
Revolving Loans | 0 |
Revolving Loans Converted to Term | 0 |
Total | 642 |
Consumer Banking: | Retail banking | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2024 | 0 |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
Prior | 0 |
Total Term Loans | 0 |
Revolving Loans | 18 |
Revolving Loans Converted to Term | 0 |
Total | 18 |
Commercial Banking: | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2024 | 0 |
2023 | 0 |
2022 | 0 |
2021 | 4 |
2020 | 8 |
Prior | 27 |
Total Term Loans | 39 |
Revolving Loans | 0 |
Revolving Loans Converted to Term | 0 |
Total | 39 |
Commercial Banking: | Commercial and multifamily real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2024 | 0 |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
Prior | 27 |
Total Term Loans | 27 |
Revolving Loans | 0 |
Revolving Loans Converted to Term | 0 |
Total | 27 |
Commercial Banking: | Commercial and industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2024 | 0 |
2023 | 0 |
2022 | 0 |
2021 | 4 |
2020 | 8 |
Prior | 0 |
Total Term Loans | 12 |
Revolving Loans | 0 |
Revolving Loans Converted to Term | 0 |
Total | $ 12 |
Allowance for Credit Losses a_6
Allowance for Credit Losses and Reserve for Unfunded Lending Commitments - Summary of Loss Sharing Arrangements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Change in estimated partner reimbursements that decreased provision for credit losses | $ 2,683 | $ 2,795 |
Loss sharing agreements | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Estimated reimbursements from partners, beginning of period | 2,014 | 1,558 |
Amounts due from partners for charged off loans | (324) | (201) |
Change in estimated partner reimbursements that decreased provision for credit losses | 385 | 484 |
Estimated reimbursements from partners, end of period | $ 2,075 | $ 1,841 |
Variable Interest Entities an_3
Variable Interest Entities and Securitizations - Carrying Amount of Consolidated and Unconsolidated VIEs (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | $ 481,720 | $ 478,464 |
Carrying Amount of Liabilities | 423,919 | 420,375 |
Maximum Exposure to Loss | 6,061 | 6,175 |
Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 32,051 | 33,288 |
Carrying Amount of Liabilities | 18,380 | 18,746 |
Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 6,061 | 6,175 |
Carrying Amount of Liabilities | 2,001 | 2,085 |
Affordable housing entities | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 5,650 | 5,726 |
VIE, nonconsolidated, carrying amount of assets included in certain investment structures | 2,600 | 2,600 |
VIE, nonconsolidated, carrying amount of liabilities included in certain investment structures | 984 | 989 |
Affordable housing entities | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 295 | 297 |
Carrying Amount of Liabilities | 23 | 23 |
Affordable housing entities | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 5,650 | 5,726 |
Carrying Amount of Liabilities | 2,001 | 2,085 |
Entities that provide capital to low-income and rural communities | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 0 | 0 |
Entities that provide capital to low-income and rural communities | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 2,872 | 2,498 |
Carrying Amount of Liabilities | 10 | 10 |
Entities that provide capital to low-income and rural communities | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 0 | 0 |
Carrying Amount of Liabilities | 0 | 0 |
Other | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 411 | 449 |
Other | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 0 | 0 |
Carrying Amount of Liabilities | 0 | 0 |
Other | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 411 | 449 |
Carrying Amount of Liabilities | 0 | 0 |
Total other VIEs | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 6,061 | 6,175 |
Total other VIEs | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 3,167 | 2,795 |
Carrying Amount of Liabilities | 33 | 33 |
Total other VIEs | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 6,061 | 6,175 |
Carrying Amount of Liabilities | 2,001 | 2,085 |
Credit card loan securitizations | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 0 | 0 |
Credit card loan securitizations | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 24,393 | 25,474 |
Carrying Amount of Liabilities | 14,692 | 14,692 |
Credit card loan securitizations | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 0 | 0 |
Carrying Amount of Liabilities | 0 | 0 |
Auto loan securitizations | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 0 | 0 |
Auto loan securitizations | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 4,491 | 5,019 |
Carrying Amount of Liabilities | 3,655 | 4,021 |
Auto loan securitizations | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 0 | 0 |
Carrying Amount of Liabilities | 0 | 0 |
Total securitization-related VIEs | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 0 | 0 |
Total securitization-related VIEs | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 28,884 | 30,493 |
Carrying Amount of Liabilities | 18,347 | 18,713 |
Total securitization-related VIEs | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 0 | 0 |
Carrying Amount of Liabilities | $ 0 | $ 0 |
Variable Interest Entities an_4
Variable Interest Entities and Securitizations - Continuing Involvement in Securitization Related VIEs (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Credit Card | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Securities held by third-party investors | $ 14,013 | $ 14,029 |
Receivables in the trusts | 25,273 | 26,404 |
Cash balance of spread or reserve accounts | 0 | 0 |
Auto | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Securities held by third-party investors | 3,648 | 4,014 |
Receivables in the trusts | 4,304 | 4,839 |
Cash balance of spread or reserve accounts | $ 19 | $ 19 |
Variable Interest Entities an_5
Variable Interest Entities and Securitizations - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Variable Interest Entity [Line Items] | |||
Amortization method qualified affordable housing investments, amortization | $ 178 | $ 170 | |
Affordable housing tax credits | 184 | $ 177 | |
Amortization method qualified affordable housing investments | 5,300 | $ 5,500 | |
Qualified affordable housing investments, commitment | 2,200 | 2,300 | |
Assets | 481,720 | 478,464 | |
VIE, reporting entity involvement, maximum loss exposure | 6,061 | 6,175 | |
Unconsolidated | |||
Variable Interest Entity [Line Items] | |||
Assets | 6,061 | 6,175 | |
Consolidated | |||
Variable Interest Entity [Line Items] | |||
Assets | 32,051 | 33,288 | |
Affordable housing entities | |||
Variable Interest Entity [Line Items] | |||
VIE, reporting entity involvement, maximum loss exposure | 5,650 | 5,726 | |
Affordable housing entities | Unconsolidated | |||
Variable Interest Entity [Line Items] | |||
Assets | 5,650 | 5,726 | |
Total assets of the unconsolidated VIE investment funds | 18,800 | 18,600 | |
Affordable housing entities | Consolidated | |||
Variable Interest Entity [Line Items] | |||
Assets | 295 | 297 | |
Entities that provide capital to low-income and rural communities | |||
Variable Interest Entity [Line Items] | |||
VIE, reporting entity involvement, maximum loss exposure | 0 | 0 | |
Entities that provide capital to low-income and rural communities | Unconsolidated | |||
Variable Interest Entity [Line Items] | |||
Assets | 0 | 0 | |
Entities that provide capital to low-income and rural communities | Consolidated | |||
Variable Interest Entity [Line Items] | |||
Assets | 2,872 | 2,498 | |
Other | |||
Variable Interest Entity [Line Items] | |||
VIE, reporting entity involvement, maximum loss exposure | 411 | 449 | |
Other | Unconsolidated | |||
Variable Interest Entity [Line Items] | |||
Assets | 411 | 449 | |
Other | Consolidated | |||
Variable Interest Entity [Line Items] | |||
Assets | $ 0 | $ 0 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Components (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Goodwill | ||
Carrying Amount of Assets | $ 15,062 | $ 15,065 |
Net Carrying Amount | 15,062 | 15,065 |
Other intangible assets: | ||
Carrying Amount of Assets | 503 | 540 |
Accumulated Amortization | (213) | (230) |
Net Carrying Amount | 290 | 310 |
Total goodwill and other intangible assets | ||
Carrying Amount of Assets | 15,565 | 15,605 |
Net Carrying Amount | 15,352 | 15,375 |
Commercial MSRs | ||
Carrying Amount of Assets | 654 | 653 |
Accumulated Amortization | (277) | (263) |
Net Carrying Amount | 377 | 390 |
Purchased credit card relationship (“PCCR”) intangibles | ||
Other intangible assets: | ||
Carrying Amount of Assets | 369 | 369 |
Accumulated Amortization | (113) | (96) |
Net Carrying Amount | 256 | 273 |
Other | ||
Other intangible assets: | ||
Carrying Amount of Assets | 134 | 171 |
Accumulated Amortization | (100) | (134) |
Net Carrying Amount | $ 34 | $ 37 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of Intangibles | $ 19 | $ 14 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Goodwill Business Segments (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 15,065 |
Other adjustments | (3) |
Goodwill, ending balance | 15,062 |
Credit Card | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 5,366 |
Other adjustments | (3) |
Goodwill, ending balance | 5,363 |
Consumer Banking | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 4,645 |
Other adjustments | 0 |
Goodwill, ending balance | 4,645 |
Commercial Banking | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 5,054 |
Other adjustments | 0 |
Goodwill, ending balance | $ 5,054 |
Deposits and Borrowings - Depos
Deposits and Borrowings - Deposits and Short-term Borrowings (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Deposits: | |||
Non-interest-bearing deposits | $ 27,617 | $ 28,024 | |
Interest-bearing deposits | 323,352 | 320,389 | |
Total deposits | 350,969 | 348,413 | $ 349,827 |
Short-term borrowings: | |||
Total short-term borrowings | 568 | 538 | |
Federal funds purchased and securities loaned or sold under agreements to repurchase | |||
Short-term borrowings: | |||
Total short-term borrowings | $ 568 | $ 538 |
Deposits and Borrowings - Long-
Deposits and Borrowings - Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 49,793 | $ 49,318 |
Total short-term borrowings and long-term debt | 50,361 | 49,856 |
Time deposits, at or above FDIC insurance limit | 13,100 | 15,800 |
Deposit liability, uninsured | 8,400 | 9,000 |
Senior and subordinated notes | 32,108 | 31,248 |
Euro | ||
Debt Instrument [Line Items] | ||
Senior and subordinated notes | $ 1,300 | 1,300 |
Securitized debt obligations | ||
Debt Instrument [Line Items] | ||
Weighted-Average Interest Rate | 3% | |
Carrying value | $ 17,661 | 18,043 |
Total senior and subordinated notes | ||
Debt Instrument [Line Items] | ||
Carrying value | $ 32,108 | 31,248 |
Senior notes | Total unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Weighted-Average Interest Rate | 4.60% | |
Carrying value | $ 28,412 | 27,517 |
Senior notes | Fixed unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Weighted-Average Interest Rate | 4.57% | |
Carrying value | $ 28,063 | 27,168 |
Senior notes | Floating unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Stated Interest Rates | 6.68% | |
Weighted-Average Interest Rate | 6.68% | |
Carrying value | $ 349 | 349 |
Subordinated notes | Fixed unsecured subordinated debt | ||
Debt Instrument [Line Items] | ||
Weighted-Average Interest Rate | 3.57% | |
Carrying value | $ 3,696 | 3,731 |
Other long-term borrowings | ||
Debt Instrument [Line Items] | ||
Weighted-Average Interest Rate | 6.64% | |
Carrying value | $ 24 | $ 27 |
Minimum | Securitized debt obligations | ||
Debt Instrument [Line Items] | ||
Stated Interest Rates | 0.55% | |
Minimum | Senior notes | Fixed unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Stated Interest Rates | 0.80% | |
Minimum | Subordinated notes | Fixed unsecured subordinated debt | ||
Debt Instrument [Line Items] | ||
Stated Interest Rates | 2.36% | |
Minimum | Other long-term borrowings | ||
Debt Instrument [Line Items] | ||
Stated Interest Rates | 0.49% | |
Maximum | Securitized debt obligations | ||
Debt Instrument [Line Items] | ||
Stated Interest Rates | 6.13% | |
Maximum | Senior notes | Fixed unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Stated Interest Rates | 7.62% | |
Maximum | Subordinated notes | Fixed unsecured subordinated debt | ||
Debt Instrument [Line Items] | ||
Stated Interest Rates | 4.20% | |
Maximum | Other long-term borrowings | ||
Debt Instrument [Line Items] | ||
Stated Interest Rates | 9.91% |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Derivative Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | $ 304,102 | $ 294,039 |
Derivative assets, gross amount | 2,649 | 2,675 |
Derivative liabilities, gross amount | 2,934 | 2,932 |
Derivative Asset, netting adjustments | (1,050) | (1,005) |
Derivative Liability, netting adjustments | (440) | (597) |
Net Amounts as Recognized | 1,599 | 1,670 |
Net Amounts as Recognized | 2,494 | 2,335 |
Net valuation allowance on derivative assets and liabilities for non-performance risk | 1 | 2 |
Derivatives designated as accounting hedges: | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 157,501 | 148,075 |
Derivative assets, gross amount | 167 | 235 |
Derivative liabilities, gross amount | 223 | 317 |
Derivatives designated as accounting hedges: | Interest rate contracts: | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 148,907 | 139,337 |
Derivative assets, gross amount | 138 | 234 |
Derivative liabilities, gross amount | 46 | 49 |
Derivatives designated as accounting hedges: | Interest rate contracts: | Fair value hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 69,607 | 68,987 |
Derivative assets, gross amount | 4 | 18 |
Derivative liabilities, gross amount | 26 | 26 |
Derivatives designated as accounting hedges: | Interest rate contracts: | Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 79,300 | 70,350 |
Derivative assets, gross amount | 134 | 216 |
Derivative liabilities, gross amount | 20 | 23 |
Derivatives designated as accounting hedges: | Foreign exchange and other contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 8,594 | 8,738 |
Derivative assets, gross amount | 29 | 1 |
Derivative liabilities, gross amount | 177 | 268 |
Derivatives designated as accounting hedges: | Foreign exchange and other contracts | Fair value hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 1,349 | 1,380 |
Derivative assets, gross amount | 0 | 0 |
Derivative liabilities, gross amount | 135 | 113 |
Derivatives designated as accounting hedges: | Foreign exchange and other contracts | Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 2,431 | 2,488 |
Derivative assets, gross amount | 11 | 0 |
Derivative liabilities, gross amount | 1 | 66 |
Derivatives designated as accounting hedges: | Foreign exchange and other contracts | Net investment hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 4,814 | 4,870 |
Derivative assets, gross amount | 18 | 1 |
Derivative liabilities, gross amount | 41 | 89 |
Derivatives not designated as accounting hedges: | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 146,601 | 145,964 |
Derivative assets, gross amount | 2,482 | 2,440 |
Derivative liabilities, gross amount | 2,711 | 2,615 |
Derivatives not designated as accounting hedges: | Customer accommodation: | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 141,649 | 142,137 |
Derivative assets, gross amount | 2,441 | 2,399 |
Derivative liabilities, gross amount | 2,674 | 2,576 |
Derivatives not designated as accounting hedges: | Interest rate contracts: | Customer accommodation: | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 101,903 | 103,489 |
Derivative assets, gross amount | 1,224 | 1,188 |
Derivative liabilities, gross amount | 1,474 | 1,382 |
Derivatives not designated as accounting hedges: | Interest rate contracts: | Other interest rate exposures | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 1,878 | 872 |
Derivative assets, gross amount | 21 | 21 |
Derivative liabilities, gross amount | 30 | 31 |
Derivatives not designated as accounting hedges: | Foreign exchange and other contracts | Customer accommodation: | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 5,108 | 5,153 |
Derivative assets, gross amount | 43 | 50 |
Derivative liabilities, gross amount | 28 | 47 |
Derivatives not designated as accounting hedges: | Commodity contracts | Customer accommodation: | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 34,638 | 33,495 |
Derivative assets, gross amount | 1,174 | 1,161 |
Derivative liabilities, gross amount | 1,172 | 1,147 |
Derivatives not designated as accounting hedges: | Other contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 3,074 | 2,955 |
Derivative assets, gross amount | 20 | 20 |
Derivative liabilities, gross amount | $ 7 | $ 8 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Hedged Items in Fair Value Hedging Relationship (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Hedged Items In Fair Value Hedging Relationship [Line Items] | ||
Total Assets | $ 10 | $ 33 |
Discontinued Hedging Relationships, Assets | 1,900 | 2,200 |
Designated hedged items | 1,300 | 1,500 |
Investment securities available for sale | ||
Hedged Items In Fair Value Hedging Relationship [Line Items] | ||
Carrying Amount Assets | 6,022 | 6,108 |
Total Assets | (48) | (8) |
Discontinued Hedging Relationships, Assets | 109 | 126 |
Interest-bearing deposits | ||
Hedged Items In Fair Value Hedging Relationship [Line Items] | ||
Carrying Amount Liabilities | (16,991) | (17,374) |
Total Liabilities | 348 | 277 |
Discontinued Hedging Relationships, Liabilities | 0 | 0 |
Securitized debt obligations | ||
Hedged Items In Fair Value Hedging Relationship [Line Items] | ||
Carrying Amount Liabilities | (13,358) | (13,375) |
Total Liabilities | 523 | 503 |
Discontinued Hedging Relationships, Liabilities | 0 | 0 |
Senior and subordinated notes | ||
Hedged Items In Fair Value Hedging Relationship [Line Items] | ||
Carrying Amount Liabilities | (31,758) | (30,899) |
Total Liabilities | 1,325 | 971 |
Discontinued Hedging Relationships, Liabilities | $ (332) | $ (372) |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Offsetting Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative assets | ||
Gross Amounts | $ 2,649 | $ 2,675 |
Financial Instruments | (268) | (433) |
Cash Collateral Received | (782) | (572) |
Net Amounts as Recognized | 1,599 | 1,670 |
Securities Collateral Held Under Master Netting Agreements | (19) | (22) |
Net Exposure | $ 1,580 | $ 1,648 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Offsetting Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative liabilities | ||
Gross Amounts | $ 2,934 | $ 2,932 |
Financial Instruments | (268) | (433) |
Cash Collateral Pledged | (172) | (164) |
Net Amounts as Recognized | 2,494 | 2,335 |
Securities Collateral Pledged Under Master Netting Agreements | (24) | (13) |
Net Exposure | 2,470 | 2,322 |
Repurchase agreements | ||
Gross Amounts | 568 | 538 |
Financial Instruments | 0 | 0 |
Cash Collateral Pledged | 0 | 0 |
Net Amounts as Recognized | 568 | 538 |
Securities Collateral Pledged Under Master Netting Agreements | (568) | (538) |
Net Exposure | 0 | 0 |
Derivative, collateral, obligation to return cash | 1,100 | 858 |
Derivative, collateral, obligation to return securities | 13 | 16 |
Derivative, collateral, right to reclaim cash | 1,600 | 1,700 |
Securities sold under repurchase agreements, fair value of collateral | $ 579 | $ 549 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Effects of Fair Value and Cash Flow Hedge Accounting (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest income: | ||
Investment Securities | $ 687 | $ 615 |
Loans, Including Loans Held for Sale | 9,920 | 8,723 |
Other | 570 | 416 |
Interest-bearing Deposits | (2,812) | (1,856) |
Securitized Debt Obligations | (261) | (211) |
Senior and Subordinated Notes | (606) | (489) |
Non-interest income (loss) | 307 | 199 |
Amortization expense (benefit) | (23) | (15) |
Non-Interest Income, Other | ||
Interest income: | ||
Realized gain (loss) on foreign exchange contracts reclassified from AOCI | 73 | (8) |
Fair value hedges | Investment Securities | ||
Interest income: | ||
Net income (expense) recognized on fair value hedges | 27 | 15 |
Fair value hedges | Loans, Including Loans Held for Sale | ||
Interest income: | ||
Net income (expense) recognized on fair value hedges | 0 | 0 |
Fair value hedges | Other | ||
Interest income: | ||
Net income (expense) recognized on fair value hedges | 0 | 0 |
Fair value hedges | Interest-bearing Deposits | ||
Interest income: | ||
Net income (expense) recognized on fair value hedges | (107) | (80) |
Fair value hedges | Securitized Debt Obligations | ||
Interest income: | ||
Net income (expense) recognized on fair value hedges | (118) | (85) |
Fair value hedges | Senior and Subordinated Notes | ||
Interest income: | ||
Net income (expense) recognized on fair value hedges | (228) | (189) |
Fair value hedges | Non-Interest Income, Other | ||
Interest income: | ||
Net income (expense) recognized on fair value hedges | 0 | 0 |
Fair value hedges | Interest rate contracts: | Investment Securities | ||
Interest income: | ||
Interest recognized on derivatives | 45 | 33 |
Gains (losses) recognized on derivatives | 21 | (49) |
Gains (losses) recognized on hedged items | (39) | 31 |
Excluded component of fair value hedges | 0 | 0 |
Fair value hedges | Interest rate contracts: | Loans, Including Loans Held for Sale | ||
Interest income: | ||
Interest recognized on derivatives | 0 | 0 |
Gains (losses) recognized on derivatives | 0 | 0 |
Gains (losses) recognized on hedged items | 0 | 0 |
Excluded component of fair value hedges | 0 | 0 |
Fair value hedges | Interest rate contracts: | Other | ||
Interest income: | ||
Interest recognized on derivatives | 0 | 0 |
Gains (losses) recognized on derivatives | 0 | 0 |
Gains (losses) recognized on hedged items | 0 | 0 |
Excluded component of fair value hedges | 0 | 0 |
Fair value hedges | Interest rate contracts: | Interest-bearing Deposits | ||
Interest income: | ||
Interest recognized on derivatives | (107) | (78) |
Gains (losses) recognized on derivatives | (71) | 178 |
Gains (losses) recognized on hedged items | 71 | (180) |
Excluded component of fair value hedges | 0 | 0 |
Fair value hedges | Interest rate contracts: | Securitized Debt Obligations | ||
Interest income: | ||
Interest recognized on derivatives | (118) | (84) |
Gains (losses) recognized on derivatives | (19) | 148 |
Gains (losses) recognized on hedged items | 19 | (149) |
Excluded component of fair value hedges | 0 | 0 |
Fair value hedges | Interest rate contracts: | Senior and Subordinated Notes | ||
Interest income: | ||
Interest recognized on derivatives | (267) | (220) |
Gains (losses) recognized on derivatives | (316) | 387 |
Gains (losses) recognized on hedged items | 356 | (355) |
Excluded component of fair value hedges | (1) | (1) |
Fair value hedges | Interest rate contracts: | Non-Interest Income, Other | ||
Interest income: | ||
Interest recognized on derivatives | 0 | 0 |
Gains (losses) recognized on derivatives | (31) | 17 |
Gains (losses) recognized on hedged items | 31 | (17) |
Excluded component of fair value hedges | 0 | 0 |
Cash flow hedges | Investment Securities | ||
Interest income: | ||
Net income (expense) recognized on cash flow hedges | 0 | 0 |
Cash flow hedges | Loans, Including Loans Held for Sale | ||
Interest income: | ||
Net income (expense) recognized on cash flow hedges | (309) | (262) |
Cash flow hedges | Other | ||
Interest income: | ||
Net income (expense) recognized on cash flow hedges | 2 | 3 |
Cash flow hedges | Interest-bearing Deposits | ||
Interest income: | ||
Net income (expense) recognized on cash flow hedges | 0 | 0 |
Cash flow hedges | Securitized Debt Obligations | ||
Interest income: | ||
Net income (expense) recognized on cash flow hedges | 0 | 0 |
Cash flow hedges | Senior and Subordinated Notes | ||
Interest income: | ||
Net income (expense) recognized on cash flow hedges | 0 | 0 |
Cash flow hedges | Non-Interest Income, Other | ||
Interest income: | ||
Net income (expense) recognized on cash flow hedges | 0 | 0 |
Cash flow hedges | Interest rate contracts: | Investment Securities | ||
Interest income: | ||
Realized gains (losses) reclassified from AOCI into net income | 0 | 0 |
Cash flow hedges | Interest rate contracts: | Loans, Including Loans Held for Sale | ||
Interest income: | ||
Realized gains (losses) reclassified from AOCI into net income | (309) | (262) |
Cash flow hedges | Interest rate contracts: | Other | ||
Interest income: | ||
Realized gains (losses) reclassified from AOCI into net income | 0 | 0 |
Cash flow hedges | Interest rate contracts: | Interest-bearing Deposits | ||
Interest income: | ||
Realized gains (losses) reclassified from AOCI into net income | 0 | 0 |
Cash flow hedges | Interest rate contracts: | Securitized Debt Obligations | ||
Interest income: | ||
Realized gains (losses) reclassified from AOCI into net income | 0 | 0 |
Cash flow hedges | Interest rate contracts: | Senior and Subordinated Notes | ||
Interest income: | ||
Realized gains (losses) reclassified from AOCI into net income | 0 | 0 |
Cash flow hedges | Interest rate contracts: | Non-Interest Income, Other | ||
Interest income: | ||
Realized gains (losses) reclassified from AOCI into net income | 0 | 0 |
Cash flow hedges | Foreign exchange and other contracts | Investment Securities | ||
Interest income: | ||
Realized gains (losses) reclassified from AOCI into net income | 0 | 0 |
Cash flow hedges | Foreign exchange and other contracts | Loans, Including Loans Held for Sale | ||
Interest income: | ||
Realized gains (losses) reclassified from AOCI into net income | 0 | 0 |
Cash flow hedges | Foreign exchange and other contracts | Other | ||
Interest income: | ||
Realized gains (losses) reclassified from AOCI into net income | 2 | 3 |
Cash flow hedges | Foreign exchange and other contracts | Interest-bearing Deposits | ||
Interest income: | ||
Realized gains (losses) reclassified from AOCI into net income | 0 | 0 |
Cash flow hedges | Foreign exchange and other contracts | Securitized Debt Obligations | ||
Interest income: | ||
Realized gains (losses) reclassified from AOCI into net income | 0 | 0 |
Cash flow hedges | Foreign exchange and other contracts | Senior and Subordinated Notes | ||
Interest income: | ||
Realized gains (losses) reclassified from AOCI into net income | 0 | 0 |
Cash flow hedges | Foreign exchange and other contracts | Non-Interest Income, Other | ||
Interest income: | ||
Realized gains (losses) reclassified from AOCI into net income | $ 0 | $ 0 |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gain (loss) (net after-tax) recorded in AOCI related to derivatives designated as cash flow hedges expected to be reclassified to earnings over the next 12 months | $ 786 |
Maximum length of time over which forecasted transactions were hedged, years | 9 years |
Derivative Instruments and He_9
Derivative Instruments and Hedging Activities - Gains Losses on Freestanding Derivatives (Details) - Other non-interest income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in other non-interest income: | $ 74 | $ 66 |
Interest rate contracts: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in other non-interest income: | 17 | 19 |
Interest rate contracts: | Customer accommodation: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in other non-interest income: | 7 | 8 |
Interest rate contracts: | Other interest rate exposures | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in other non-interest income: | 68 | 52 |
Commodity contracts | Customer accommodation: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in other non-interest income: | 4 | 8 |
Foreign exchange and other contracts | Customer accommodation: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in other non-interest income: | 6 | 3 |
Other contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in other non-interest income: | $ (11) | $ (5) |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock Outstanding (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Class of Stock [Line Items] | ||
Carrying Value (in millions) | $ 4,845 | $ 4,845 |
Series I | ||
Class of Stock [Line Items] | ||
Per Annum Dividend Rate | 5% | |
Liquidation Preference per Share (in dollars per share) | $ 1,000 | |
Total Shares Outstanding (in shares) | 1,500,000 | |
Carrying Value (in millions) | $ 1,462 | 1,462 |
Series J | ||
Class of Stock [Line Items] | ||
Per Annum Dividend Rate | 4.80% | |
Liquidation Preference per Share (in dollars per share) | $ 1,000 | |
Total Shares Outstanding (in shares) | 1,250,000 | |
Carrying Value (in millions) | $ 1,209 | 1,209 |
Series K | ||
Class of Stock [Line Items] | ||
Per Annum Dividend Rate | 4.625% | |
Liquidation Preference per Share (in dollars per share) | $ 1,000 | |
Total Shares Outstanding (in shares) | 125,000 | |
Carrying Value (in millions) | $ 122 | 122 |
Series L | ||
Class of Stock [Line Items] | ||
Per Annum Dividend Rate | 4.375% | |
Liquidation Preference per Share (in dollars per share) | $ 1,000 | |
Total Shares Outstanding (in shares) | 675,000 | |
Carrying Value (in millions) | $ 652 | 652 |
Series M | ||
Class of Stock [Line Items] | ||
Liquidation Preference per Share (in dollars per share) | $ 1,000 | |
Total Shares Outstanding (in shares) | 1,000,000 | |
Carrying Value (in millions) | $ 988 | 988 |
Series M | Maximum | ||
Class of Stock [Line Items] | ||
Per Annum Dividend Rate | 3.95% | |
Series M | Minimum | ||
Class of Stock [Line Items] | ||
Per Annum Dividend Rate | 3.157% | |
Series N | ||
Class of Stock [Line Items] | ||
Per Annum Dividend Rate | 4.25% | |
Liquidation Preference per Share (in dollars per share) | $ 1,000 | |
Total Shares Outstanding (in shares) | 425,000 | |
Carrying Value (in millions) | $ 412 | $ 412 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
AOCI beginning balance | $ (8,268) | |
Other comprehensive income (loss) before reclassifications | (1,443) | $ 1,173 |
Amounts reclassified from AOCI into earnings | 177 | 203 |
Other comprehensive income (loss), net of tax | (1,266) | 1,376 |
AOCI ending balance | (9,534) | |
Securities Available for Sale | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
AOCI beginning balance | (6,769) | (7,676) |
Other comprehensive income (loss) before reclassifications | (844) | 962 |
Amounts reclassified from AOCI into earnings | 0 | 0 |
Other comprehensive income (loss), net of tax | (844) | 962 |
AOCI ending balance | (7,613) | (6,714) |
Hedging relationships: | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
AOCI beginning balance | (1,493) | (2,182) |
Other comprehensive income (loss) before reclassifications | (587) | 198 |
Amounts reclassified from AOCI into earnings | 177 | 203 |
Other comprehensive income (loss), net of tax | (410) | 401 |
AOCI ending balance | (1,903) | (1,781) |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
AOCI beginning balance | 26 | (20) |
Other comprehensive income (loss) before reclassifications | (13) | 13 |
Amounts reclassified from AOCI into earnings | 0 | 0 |
Other comprehensive income (loss), net of tax | (13) | 13 |
AOCI ending balance | 13 | (7) |
Other: | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
AOCI beginning balance | (32) | (38) |
Other comprehensive income (loss) before reclassifications | 1 | 0 |
Amounts reclassified from AOCI into earnings | 0 | 0 |
Other comprehensive income (loss), net of tax | 1 | 0 |
AOCI ending balance | (31) | (38) |
Total | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
AOCI beginning balance | (8,268) | (9,916) |
AOCI ending balance | (9,534) | (8,540) |
Net investment hedges | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Other comprehensive gain (loss) | $ 49 | $ (38) |
Stockholders' Equity - Reclassi
Stockholders' Equity - Reclassifications from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Non-interest income (loss) | $ 307 | $ 199 |
Income tax provision (benefit) | 302 | 203 |
Net income | 1,280 | 960 |
Interest income (loss) | 7,488 | 7,186 |
Interest expense | 3,689 | 2,568 |
Income (loss) from continuing operations before income taxes | 1,582 | 1,163 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | (177) | (203) |
Securities Available for Sale | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Non-interest income (loss) | 0 | 0 |
Income tax provision (benefit) | 0 | 0 |
Net income | 0 | 0 |
Hedging relationships: | Interest rate contracts: | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest income (loss) | (309) | (262) |
Hedging relationships: | Foreign exchange and other contracts | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Non-interest income (loss) | 74 | (8) |
Income tax provision (benefit) | (57) | (65) |
Net income | (177) | (203) |
Interest income (loss) | 2 | 3 |
Interest expense | (1) | (1) |
Income (loss) from continuing operations before income taxes | (234) | (268) |
Other: | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax provision (benefit) | 0 | 0 |
Net income | 0 | 0 |
Income (loss) from continuing operations before income taxes | $ 0 | $ 0 |
Stockholders' Equity - Other Co
Stockholders' Equity - Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Before Tax | ||
Net unrealized gains (losses) on securities available for sale | $ (1,115) | $ 1,267 |
Net unrealized gains (losses) on hedging relationships | (542) | 528 |
Foreign currency translation adjustments | 3 | 1 |
Other | 1 | 0 |
Other comprehensive income (loss) | (1,653) | 1,796 |
Provision (Benefit) | ||
Net unrealized gains (losses) on securities available for sale | (271) | 305 |
Net unrealized gains (losses) on hedging relationships | (132) | 127 |
Foreign currency translation adjustments | 16 | (12) |
Other | 0 | 0 |
Other comprehensive income (loss) | (387) | 420 |
After Tax | ||
Net unrealized gains (losses) on securities available for sale | (844) | 962 |
Net unrealized gains (losses) on hedging relationships | (410) | 401 |
Foreign currency translation adjustments | (13) | 13 |
Other | 1 | 0 |
Other comprehensive income (loss), net of tax | $ (1,266) | $ 1,376 |
Earnings Per Common Share - Com
Earnings Per Common Share - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income | $ 1,280 | $ 960 |
Dividends and undistributed earnings allocated to participating securities | (23) | (16) |
Preferred stock dividends | (57) | (57) |
Net income available to common stockholders | $ 1,200 | $ 887 |
Total weighted-average basic common shares outstanding (in shares) | 382,200 | 382,600 |
Effect of dilutive securities: | ||
Stock options (in shares) | 200 | 100 |
Other contingently issuable shares (in shares) | 1,000 | 1,100 |
Total effect of dilutive securities (in shares) | 1,200 | 1,200 |
Total weighted-average diluted common shares outstanding (in shares) | 383,400 | 383,800 |
Basic earnings per common share: | ||
Net income per basic common share (in dollars per share) | $ 3.14 | $ 2.32 |
Diluted earnings per common share: | ||
Net income per diluted common share (in dollars per share) | $ 3.13 | $ 2.31 |
Award | ||
Diluted earnings per common share: | ||
Anti-dilutive options excluded from the computation of diluted earnings per share (in shares) | 128 | 40 |
Stock options | ||
Diluted earnings per common share: | ||
Anti-dilutive options excluded from the computation of diluted earnings per share (in shares) | 0 | 0 |
Fair Value Measurement - Assets
Fair Value Measurement - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | |
Assets: | |||
Fair Value | $ 78,398 | $ 79,117 | |
Loans held for sale | $ 1,200 | $ 347 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Other assets: | |||
Derivative assets, gross amount | $ 2,649 | $ 2,675 | |
Derivative Asset, netting adjustments | (1,050) | (1,005) | |
Derivative asset | 1,599 | 1,670 | |
Liabilities: | |||
Derivative liabilities, gross amount | 2,934 | 2,932 | |
Derivative Liability, netting adjustments | (440) | (597) | |
Derivative liability | $ 2,494 | $ 2,335 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | |
Net valuation allowance | $ 1 | $ 2 | |
Level 1 | |||
Assets: | |||
Loans held for sale | 0 | 0 | |
Level 2 | |||
Assets: | |||
Loans held for sale | 431 | 515 | |
Level 3 | |||
Assets: | |||
Loans held for sale | 0 | 0 | |
Recurring | |||
Assets: | |||
Fair Value | 78,398 | 79,117 | |
Loans held for sale | 1,212 | 347 | |
Other assets: | |||
Derivative asset | 1,599 | 1,670 | |
Other | 687 | 627 | |
Total | 81,896 | 81,761 | |
Liabilities: | |||
Derivative liability | 2,494 | 2,335 | |
Recurring | Level 1 | |||
Assets: | |||
Fair Value | 5,898 | 5,408 | |
Loans held for sale | 0 | 0 | |
Other assets: | |||
Derivative assets, gross amount | 733 | 788 | |
Other | 649 | 589 | |
Total | 7,280 | 6,785 | |
Liabilities: | |||
Derivative liabilities, gross amount | 593 | 449 | |
Deferred compensation plan assets | 646 | 578 | |
Recurring | Level 2 | |||
Assets: | |||
Fair Value | 72,062 | 73,431 | |
Loans held for sale | 1,212 | 347 | |
Other assets: | |||
Derivative assets, gross amount | 942 | 1,001 | |
Other | 3 | 3 | |
Total | 74,219 | 74,782 | |
Liabilities: | |||
Derivative liabilities, gross amount | 1,421 | 1,655 | |
Recurring | Level 3 | |||
Assets: | |||
Fair Value | 438 | 278 | |
Loans held for sale | 0 | 0 | |
Other assets: | |||
Derivative assets, gross amount | 974 | 886 | $ 837 |
Other | 35 | 35 | |
Total | 1,447 | 1,199 | |
Liabilities: | |||
Derivative liabilities, gross amount | 920 | 828 | $ 819 |
Retained interests in securitizations | 35 | 35 | |
Recurring | Fair Value Inputs Level 1 And Level 2 | |||
Liabilities: | |||
Equity securities | 6 | 14 | |
Debt and equity securities, unrealized gain (loss) | 1 | 5 | |
U.S. Treasury securities | |||
Assets: | |||
Fair Value | 5,728 | 5,282 | |
U.S. Treasury securities | Recurring | |||
Assets: | |||
Fair Value | 5,728 | 5,282 | |
U.S. Treasury securities | Recurring | Level 1 | |||
Assets: | |||
Fair Value | 5,728 | 5,282 | |
U.S. Treasury securities | Recurring | Level 2 | |||
Assets: | |||
Fair Value | 0 | 0 | |
U.S. Treasury securities | Recurring | Level 3 | |||
Assets: | |||
Fair Value | 0 | 0 | |
Total RMBS | |||
Assets: | |||
Fair Value | 62,398 | 63,638 | |
Total RMBS | Recurring | |||
Assets: | |||
Fair Value | 62,398 | 63,638 | |
Total RMBS | Recurring | Level 1 | |||
Assets: | |||
Fair Value | 0 | 0 | |
Total RMBS | Recurring | Level 2 | |||
Assets: | |||
Fair Value | 62,089 | 63,492 | |
Total RMBS | Recurring | Level 3 | |||
Assets: | |||
Fair Value | 309 | 146 | |
CMBS | Recurring | |||
Assets: | |||
Fair Value | 8,193 | 8,323 | |
CMBS | Recurring | Level 1 | |||
Assets: | |||
Fair Value | 0 | 0 | |
CMBS | Recurring | Level 2 | |||
Assets: | |||
Fair Value | 8,064 | 8,191 | |
CMBS | Recurring | Level 3 | |||
Assets: | |||
Fair Value | 129 | 132 | |
Other securities | |||
Assets: | |||
Fair Value | 2,079 | 1,874 | |
Other securities | Recurring | |||
Assets: | |||
Fair Value | 2,079 | 1,874 | |
Other securities | Recurring | Level 1 | |||
Assets: | |||
Fair Value | 170 | 126 | |
Other securities | Recurring | Level 2 | |||
Assets: | |||
Fair Value | 1,909 | 1,748 | |
Other securities | Recurring | Level 3 | |||
Assets: | |||
Fair Value | $ 0 | $ 0 |
Fair Value Measurement - Level
Fair Value Measurement - Level 3 Recurring Fair Value Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Derivative, Fair Value, Net [Abstract] | |||
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | ||
Derivative assets, gross amount | $ 2,649 | $ 2,675 | |
Derivative liabilities, gross amount | 2,934 | 2,932 | |
Recurring | Level 3 | |||
Derivative, Fair Value, Net [Abstract] | |||
Beginning balance | 58 | ||
Ending balance | 54 | ||
Net unrealized gains (losses) included in OCI related to assets and liabilities still held | (8) | $ (8) | |
Derivative assets, gross amount | 974 | 837 | 886 |
Derivative liabilities, gross amount | 920 | 819 | $ 828 |
Total RMBS | Recurring | Level 3 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 146 | 236 | |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 2 | 1 | |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 0 | 3 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (3) | (5) | |
Transfers Into Level 3 | 182 | 34 | |
Transfers Out of Level 3 | (18) | (22) | |
Ending balance | 309 | 247 | |
Derivative, Fair Value, Net [Abstract] | |||
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 2 | 2 | |
CMBS | Recurring | Level 3 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 132 | 142 | |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 0 | 0 | |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | (2) | 5 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (1) | (2) | |
Transfers Into Level 3 | 0 | 0 | |
Transfers Out of Level 3 | 0 | 0 | |
Ending balance | 129 | 145 | |
Derivative, Fair Value, Net [Abstract] | |||
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 0 | 0 | |
Total securities available for sale | Recurring | Level 3 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 278 | 378 | |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 2 | 1 | |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | (2) | 8 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (4) | (7) | |
Transfers Into Level 3 | 182 | 34 | |
Transfers Out of Level 3 | (18) | (22) | |
Ending balance | 438 | 392 | |
Derivative, Fair Value, Net [Abstract] | |||
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 2 | 2 | |
Retained interests in securitizations | Recurring | Level 3 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 35 | 36 | |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 0 | 0 | |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 0 | 0 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers Into Level 3 | 0 | 0 | |
Transfers Out of Level 3 | 0 | 0 | |
Ending balance | 35 | 36 | |
Derivative, Fair Value, Net [Abstract] | |||
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 0 | 0 | |
Net derivative assets (liabilities) | Recurring | Level 3 | |||
Derivative, Fair Value, Net [Abstract] | |||
Beginning balance | 58 | 5 | |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 6 | (5) | |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 0 | 0 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | (5) | 104 | |
Settlements | (5) | 12 | |
Transfers Into Level 3 | 0 | (97) | |
Transfers Out of Level 3 | 0 | (1) | |
Ending balance | 54 | 18 | |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | $ (1) | $ 4 |
Fair Value Measurement - Quanti
Fair Value Measurement - Quantitative Information about Level 3 Fair Value Measurements (Details) $ in Millions | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 78,398 | $ 79,117 |
Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 78,398 | 79,117 |
Recurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 438 | 278 |
Retained interests in securitizations | 35 | 35 |
Net derivative assets (liabilities) | 54 | 58 |
Total RMBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 62,398 | 63,638 |
Total RMBS | Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 62,398 | 63,638 |
Total RMBS | Recurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 309 | 146 |
CMBS | Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 8,193 | 8,323 |
CMBS | Recurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 129 | $ 132 |
Yield | Total RMBS | Recurring | Level 3 | Discounted cash flows | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities available-for-sale, measurement input | 0.05 | 0.02 |
Yield | Total RMBS | Recurring | Level 3 | Discounted cash flows | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities available-for-sale, measurement input | 0.14 | 0.19 |
Yield | Total RMBS | Recurring | Level 3 | Discounted cash flows | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities available-for-sale, measurement input | 0.06 | 0.07 |
Yield | CMBS | Recurring | Level 3 | Discounted cash flows | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities available-for-sale, measurement input | 0.06 | 0.05 |
Yield | CMBS | Recurring | Level 3 | Discounted cash flows | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities available-for-sale, measurement input | 0.07 | 0.07 |
Yield | CMBS | Recurring | Level 3 | Discounted cash flows | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities available-for-sale, measurement input | 0.06 | 0.05 |
Life of receivables (months) | Recurring | Level 3 | Discounted cash flows | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Retained interests, measurement input, life of receivables | 31 months | 33 months |
Life of receivables (months) | Recurring | Level 3 | Discounted cash flows | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Retained interests, measurement input, life of receivables | 73 months | 69 months |
Voluntary prepayment rate | Recurring | Level 3 | Discounted cash flows | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Retained interests, measurement input | 0.09 | 0.09 |
Voluntary prepayment rate | Recurring | Level 3 | Discounted cash flows | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Retained interests, measurement input | 0.09 | 0.09 |
Voluntary prepayment rate | Total RMBS | Recurring | Level 3 | Discounted cash flows | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities available-for-sale, measurement input | 0 | 0 |
Voluntary prepayment rate | Total RMBS | Recurring | Level 3 | Discounted cash flows | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities available-for-sale, measurement input | 0.12 | 0.12 |
Voluntary prepayment rate | Total RMBS | Recurring | Level 3 | Discounted cash flows | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities available-for-sale, measurement input | 0.07 | 0.07 |
Discount rate | Recurring | Level 3 | Discounted cash flows | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Retained interests, measurement input | 0.05 | 0.05 |
Discount rate | Recurring | Level 3 | Discounted cash flows | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Retained interests, measurement input | 0.13 | 0.14 |
Default rate | Recurring | Level 3 | Discounted cash flows | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Retained interests, measurement input | 0.01 | 0.02 |
Default rate | Recurring | Level 3 | Discounted cash flows | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Retained interests, measurement input | 0.01 | 0.02 |
Default rate | Total RMBS | Recurring | Level 3 | Discounted cash flows | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities available-for-sale, measurement input | 0 | 0 |
Default rate | Total RMBS | Recurring | Level 3 | Discounted cash flows | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities available-for-sale, measurement input | 0.10 | 0.10 |
Default rate | Total RMBS | Recurring | Level 3 | Discounted cash flows | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities available-for-sale, measurement input | 0.02 | 0.01 |
Loss severity | Recurring | Level 3 | Discounted cash flows | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Retained interests, measurement input | 0.54 | 0.53 |
Loss severity | Recurring | Level 3 | Discounted cash flows | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Retained interests, measurement input | 1.55 | 1.63 |
Loss severity | Total RMBS | Recurring | Level 3 | Discounted cash flows | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities available-for-sale, measurement input | 0.30 | 0.30 |
Loss severity | Total RMBS | Recurring | Level 3 | Discounted cash flows | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities available-for-sale, measurement input | 0.80 | 0.80 |
Loss severity | Total RMBS | Recurring | Level 3 | Discounted cash flows | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities available-for-sale, measurement input | 0.61 | 0.61 |
Swap rates | Recurring | Level 3 | Discounted cash flows | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Net derivative assets (liabilities), measurement input | 0.04 | 0.03 |
Swap rates | Recurring | Level 3 | Discounted cash flows | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Net derivative assets (liabilities), measurement input | 0.05 | 0.05 |
Swap rates | Recurring | Level 3 | Discounted cash flows | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Net derivative assets (liabilities), measurement input | 0.04 | 0.04 |
Fair Value Measurement - Nonrec
Fair Value Measurement - Nonrecurring Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | $ 1,200 | $ 347 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 0 | 0 |
Loans held for sale | 431 | 515 |
Other investments | 1,329 | 1,329 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 302,943 | 308,044 |
Loans held for sale | 0 | 0 |
Other investments | 0 | 0 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 361 | 545 |
Loans held for sale | 10 | 37 |
Other assets | 86 | 214 |
Total | 457 | 796 |
Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 0 | 0 |
Loans held for sale | 10 | 37 |
Other assets | 0 | 0 |
Total | 10 | 37 |
Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 361 | 545 |
Loans held for sale | 0 | 0 |
Other assets | 86 | 214 |
Total | 447 | 759 |
Equity investments accounted for under measurement alternative | 31 | 46 |
Foreclosed property and repossessed assets, fair value disclosure | $ 55 | 45 |
Long lived assets held for sale | $ 123 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - Appraisal value - Level 3 - Non-Recoverable Rate | Mar. 31, 2024 | Dec. 31, 2023 |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, measurement input | 10% | 0% |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, measurement input | 59% | 100% |
Weighted average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, measurement input | 26% | 18% |
Fair Value Measurement - Nonr_2
Fair Value Measurement - Nonrecurring Fair Value Measurements Included in Earnings (Details) - Nonrecurring - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | $ (127) | $ (105) |
Loans held for sale | (10) | 0 |
Other assets | (63) | (37) |
Total | $ (200) | $ (142) |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Financial assets: | ||
Loans held for sale | $ 1,200 | $ 347 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 4,671 | 4,903 |
Restricted cash for securitization investors | 474 | 458 |
Net loans held for investment | 0 | 0 |
Loans held for sale | 0 | 0 |
Interest receivable | 0 | 0 |
Other investments | 0 | 0 |
Financial liabilities: | ||
Deposits with defined maturities | 0 | 0 |
Securitized debt obligations | 0 | 0 |
Senior and subordinated notes | 0 | 0 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 0 | 0 |
Interest payable | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 46,357 | 38,394 |
Restricted cash for securitization investors | 0 | 0 |
Net loans held for investment | 0 | 0 |
Loans held for sale | 431 | 515 |
Interest receivable | 2,514 | 2,478 |
Other investments | 1,329 | 1,329 |
Financial liabilities: | ||
Deposits with defined maturities | 75,583 | 82,990 |
Securitized debt obligations | 17,703 | 18,067 |
Senior and subordinated notes | 32,894 | 31,524 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 568 | 538 |
Interest payable | 762 | 649 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash for securitization investors | 0 | 0 |
Net loans held for investment | 302,943 | 308,044 |
Loans held for sale | 0 | 0 |
Interest receivable | 0 | 0 |
Other investments | 0 | 0 |
Financial liabilities: | ||
Deposits with defined maturities | 0 | 0 |
Securitized debt obligations | 0 | 0 |
Senior and subordinated notes | 0 | 0 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 0 | 0 |
Interest payable | 0 | 0 |
Carrying Value | ||
Financial assets: | ||
Cash and cash equivalents | 51,028 | 43,297 |
Restricted cash for securitization investors | 474 | 458 |
Net loans held for investment | 299,774 | 305,176 |
Loans held for sale | 419 | 507 |
Interest receivable | 2,514 | 2,478 |
Other investments | 1,329 | 1,329 |
Financial liabilities: | ||
Deposits with defined maturities | 75,749 | 83,014 |
Securitized debt obligations | 17,661 | 18,043 |
Senior and subordinated notes | 32,108 | 31,248 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 568 | 538 |
Interest payable | 762 | 649 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 51,028 | 43,297 |
Restricted cash for securitization investors | 474 | 458 |
Net loans held for investment | 302,943 | 308,044 |
Loans held for sale | 431 | 515 |
Interest receivable | 2,514 | 2,478 |
Other investments | 1,329 | 1,329 |
Financial liabilities: | ||
Deposits with defined maturities | 75,583 | 82,990 |
Securitized debt obligations | 17,703 | 18,067 |
Senior and subordinated notes | 32,894 | 31,524 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 568 | 538 |
Interest payable | $ 762 | $ 649 |
Business Segments and Revenue_3
Business Segments and Revenue from Contracts with Customers - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Business Segments and Revenue_4
Business Segments and Revenue from Contracts with Customers - Segment Results and Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Net interest income (loss) | $ 7,488 | $ 7,186 | |
Non-interest income (loss) | 1,914 | 1,717 | |
Total net revenue (loss) | 9,402 | 8,903 | |
Provision for credit losses | 2,683 | 2,795 | |
Non-interest expense | 5,137 | 4,945 | |
Income (loss) from continuing operations before income taxes | 1,582 | 1,163 | |
Income tax provision (benefit) | 302 | 203 | |
Income (loss) from continuing operations, net of tax | 1,280 | 960 | |
Loans held for investment | 315,154 | 308,836 | |
Deposits | 350,969 | 349,827 | $ 348,413 |
Uncollectible portion of billed finance charges and fees | 630 | 405 | |
Operating segments | Credit Card | |||
Segment Reporting Information [Line Items] | |||
Net interest income (loss) | 5,272 | 4,657 | |
Non-interest income (loss) | 1,476 | 1,363 | |
Total net revenue (loss) | 6,748 | 6,020 | |
Provision for credit losses | 2,259 | 2,261 | |
Non-interest expense | 3,229 | 3,038 | |
Income (loss) from continuing operations before income taxes | 1,260 | 721 | |
Income tax provision (benefit) | 299 | 172 | |
Income (loss) from continuing operations, net of tax | 961 | 549 | |
Loans held for investment | 150,594 | 137,142 | |
Deposits | 0 | 0 | |
Operating segments | Consumer Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income (loss) | 2,011 | 2,360 | |
Non-interest income (loss) | 159 | 135 | |
Total net revenue (loss) | 2,170 | 2,495 | |
Provision for credit losses | 426 | 275 | |
Non-interest expense | 1,246 | 1,283 | |
Income (loss) from continuing operations before income taxes | 498 | 937 | |
Income tax provision (benefit) | 117 | 221 | |
Income (loss) from continuing operations, net of tax | 381 | 716 | |
Loans held for investment | 75,099 | 78,151 | |
Deposits | 300,806 | 291,163 | |
Operating segments | Commercial Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income (loss) | 599 | 648 | |
Non-interest income (loss) | 281 | 212 | |
Total net revenue (loss) | 880 | 860 | |
Provision for credit losses | (2) | 259 | |
Non-interest expense | 515 | 530 | |
Income (loss) from continuing operations before income taxes | 367 | 71 | |
Income tax provision (benefit) | 87 | 17 | |
Income (loss) from continuing operations, net of tax | 280 | 54 | |
Loans held for investment | 89,461 | 93,543 | |
Deposits | 31,082 | 38,380 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Net interest income (loss) | (394) | (479) | |
Non-interest income (loss) | (2) | 7 | |
Total net revenue (loss) | (396) | (472) | |
Provision for credit losses | 0 | 0 | |
Non-interest expense | 147 | 94 | |
Income (loss) from continuing operations before income taxes | (543) | (566) | |
Income tax provision (benefit) | (201) | (207) | |
Income (loss) from continuing operations, net of tax | (342) | (359) | |
Loans held for investment | 0 | 0 | |
Deposits | $ 19,081 | $ 20,284 |
Business Segments and Revenue_5
Business Segments and Revenue from Contracts with Customers - Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | $ 1,390 | $ 1,278 |
Revenue (reduction) from other sources | 524 | 439 |
Total non-interest income (loss) | 1,914 | 1,717 |
Operating segments | Credit Card | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 1,141 | 1,080 |
Revenue (reduction) from other sources | 335 | 283 |
Total non-interest income (loss) | 1,476 | 1,363 |
Operating segments | Consumer Banking | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 146 | 126 |
Revenue (reduction) from other sources | 13 | 9 |
Total non-interest income (loss) | 159 | 135 |
Operating segments | Commercial Banking | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 103 | 72 |
Revenue (reduction) from other sources | 178 | 140 |
Total non-interest income (loss) | 281 | 212 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 0 | 0 |
Revenue (reduction) from other sources | (2) | 7 |
Total non-interest income (loss) | (2) | 7 |
Interchange fees, net | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 1,145 | 1,139 |
Interchange fees, net | Operating segments | Credit Card | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 1,020 | 1,025 |
Interchange fees, net | Operating segments | Consumer Banking | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 98 | 86 |
Interchange fees, net | Operating segments | Commercial Banking | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 27 | 27 |
Interchange fees, net | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 0 | 1 |
Service charges and other customer-related fees | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 78 | 60 |
Service charges and other customer-related fees | Operating segments | Credit Card | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 0 | 0 |
Service charges and other customer-related fees | Operating segments | Consumer Banking | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 4 | 21 |
Service charges and other customer-related fees | Operating segments | Commercial Banking | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 74 | 40 |
Service charges and other customer-related fees | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 0 | (1) |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 167 | 79 |
Other | Operating segments | Credit Card | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 121 | 55 |
Other | Operating segments | Consumer Banking | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 44 | 19 |
Other | Operating segments | Commercial Banking | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | 2 | 5 |
Other | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total contract revenue | $ 0 | $ 0 |
Commitments, Contingencies, G_3
Commitments, Contingencies, Guarantees and Others - Unfunded Lending Commitments: Contractual Amount and Carrying Value (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Loss Contingencies [Line Items] | ||
Total unfunded lending commitments, contractual amount | $ 452,558 | $ 441,283 |
Off-balance sheet lending commitment, carrying value | 92 | 122 |
Credit Card: | ||
Loss Contingencies [Line Items] | ||
Credit car lines, contractual amount | 404,968 | 392,867 |
Other loan commitments | ||
Loss Contingencies [Line Items] | ||
Credit car lines, contractual amount | 46,169 | 46,951 |
Off-balance sheet lending commitment, carrying value | 67 | 99 |
Advised line of credit | 4,500 | 4,700 |
Letter of credit | ||
Loss Contingencies [Line Items] | ||
Standby letters of credit and commercial letters of credit, contractual amount | 1,421 | 1,465 |
Off-balance sheet lending commitment, carrying value | $ 25 | $ 23 |
Commitments, Contingencies, G_4
Commitments, Contingencies, Guarantees and Others - Loss Sharing Agreements (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Loss sharing agreements | ||
Loss Contingencies [Line Items] | ||
Guarantee obligation | $ 143 | $ 137 |
Commitments, Contingencies, G_5
Commitments, Contingencies, Guarantees and Others - Litigation (Details) $ in Millions | Mar. 31, 2024 USD ($) claim |
Loss Contingencies [Line Items] | |
Loss contingency, estimate of possible loss | $ 200 |
Cybersecurity Incident | |
Loss Contingencies [Line Items] | |
Number of consumer class action cases filed for cybersecurity incident | claim | 5 |
Penalty paid to the US treasury | $ 80 |
Commitments, Contingencies, G_6
Commitments, Contingencies, Guarantees and Others - Other Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | $ 200 | |
FDIC Special Assessment | ||
Loss Contingencies [Line Items] | ||
Operating expenses | 42 | $ 289 |
Loss Contingency Accrual | 331 | |
Loss contingency, estimate of possible loss | $ 200 |