Unless otherwise noted, business segment revenue, net of interest expense, is on an FTE basis.

Consumer and Business Banking (CBB)
  Three Months Ended   Year Ended
(Dollars in millions) December 31 2013   December 312012   December 31 2013   December 312012
Total revenue, net of interest expense, FTE basis $ 7,497   $ 7,401 $ 29,867   $ 29,790
Provision for credit losses 427 1,078 3,107 4,148
Noninterest expense 4,042 4,174 16,357 16,995
Net income $ 1,967 $ 1,446 $ 6,588 $ 5,546
Return on average allocated capital 1, 2 26.03 % % 21.98 % %
Return on average economic capital 1, 2 23.46 23.12
Average loans $ 163,152 $ 167,219 $ 164,570 $ 173,036
Average deposits 528,808 484,086 518,980 475,180
At period-end
Brokerage assets         $ 96,048     $ 75,946  

1 Effective January 1, 2013, the company revised, on a prospective basis, its methodology for allocating capital to the business segments. In connection with this change in methodology, the company updated the applicable terminology to allocated capital from economic capital as reported in prior periods. For reconciliation of allocated capital, refer to pages 23-25 of this press release.

2 Return on average allocated capital and return on average economic capital are non-GAAP financial measures. The company believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. For reconciliation to GAAP financial measures, refer to pages 23-25 of this press release.

Business Highlights
  • Average deposit balances for the quarter of $528.8 billion increased $44.7 billion, or 9 percent, from the year-ago quarter. The increase was driven by growth in liquid products in the current low-rate environment and the $20 billion average impact of deposit transfers primarily from Global Wealth and Investment Management (GWIM). The average rate paid on deposits declined to 8 basis points in the fourth quarter of 2013 from 16 basis points in the year-ago quarter, due to pricing discipline and a shift in the mix of deposits.
  • The number of active mobile banking customers increased 20 percent from the year-ago quarter to 14.4 million.
  • Total Corporate U.S. Consumer Credit Card (including balances in GWIM) retail spending per average active account increased 6 percent from the fourth quarter of 2012.
  • Total Corporate U.S. Consumer Credit Card net credit loss rate for the fourth quarter of 2013 was 3.19 percent, the lowest since the first quarter of 2006.
  • Return on average allocated capital increased to 26.03 percent in the fourth quarter of 2013 from 23.55 percent in the third quarter of 2013.

Financial Overview

Consumer and Business Banking reported net income of $2.0 billion, up $521 million, or 36 percent, from the year-ago quarter, driven by lower provision for credit losses, lower noninterest expense and higher revenue.

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