The provision for credit losses was $180 million in the fourth quarter of 2012, compared to $68 million in the third quarter of 2012 and a benefit of $256 million in the prior-year quarter. The increase from the prior quarter was driven primarily by the impact of regulatory guidance on consumer dealer finance loans discharged from bankruptcy and commercial loan growth. Compared to the year-ago quarter, provision expense increased primarily due to lower reserve releases as asset quality stabilized in the portfolio. Noninterest expense was $1.9 billion, down 9 percent from the year-ago quarter, primarily from lower personnel-related and operating expenses.
|Three Months Ended||Year Ended|
|(Dollars in millions)||December 31 2012||December 312011||December 31 2012||December 312011|
|Total revenue, net of interest expense, FTE basis||$||2,844||$||1,807||$||13,519||$||14,798|
|Total revenue, net of interest expense, FTE basis, excluding DVA 1||3,120||2,281||15,967||13,797|
|Provision for credit losses||16||(18||)||3||(56||)|
|Net income (loss)||$||152||$||(768||)||$||1,054||$||988|
|Net income (loss), excluding DVA and U.K. tax 1||326||(469||)||3,377||1,131|
|Return on average equity 2||3.39||%||n/m||5.99||%||4.36||%|
|Return on average economic capital 3||4.63||n/m||8.20||5.54|
|Total average assets||$||628,449||$||552,911||$||588,459||$||590,474|
1 Total revenue, net of interest expense, on an FTE basis excluding DVA is a non-GAAP financial measure. DVA gains (losses) were $(276) million and $(474) million for the three months ended December 31, 2012 and 2011, and $(2.4) billion and $1.0 billion for the years ended December 31, 2012 and 2011. U.K. corporate tax rate adjustments were $781 million and $774 million for the years ended December 31, 2012 and 2011.
2 Return on average equity, excluding DVA and U.K. corporate tax rate adjustments was 19.19% and 4.99% for the years ended December 31, 2012 and 2011.3 Return on average economic capital is a non-GAAP financial measure. Return on average economic capital excluding DVA and the U.K. corporate tax rate adjustments was 26.14% and 6.34% for the years ended December 31, 2012 and 2011. For reconciliation to GAAP financial measures, refer to pages 25-28 of this press release. n/m = not meaningful