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2003 Annual Report: Financial Review: Statistical Financial Information: Table II Analysis of Changes in Net Interest Income - Fully Taxable-equivalent Basis

Table II

Analysis of Changes in Net Interest Income - Fully Taxable-equivalent Basis


From 2002 to 2003 From 2001 to 2002
Due to Change in(1) Due to Change in(1)
(Dollars in millions) Volume Rate Net
Change
Volume Rate Net
Change
Increase (decrease) in interest income
Time deposits placed and other short-term investments $ (24 ) $ (47 ) $ (71 ) $ 157 $ (232 ) $ (75 )
Federal funds sold and securities purchased under agreements to resell 636 (133 ) 503 421 (965 ) (544 )
Trading account assets 855 (722 ) 133 723 (516 ) 207
Debt securities (169 ) (708 ) (877 ) 930 (591 ) 339
Loans and leases:
     Commercial - domestic (717 ) 318 (399 ) (1,759 ) (750 ) (2,509 )
     Commercial - foreign (147 ) (64 ) (211 ) (311 ) (432 ) (743 )
     Commercial real estate - domestic (70 ) (123 ) (193 ) (238 ) (419 ) (657 )
     Commercial real estate - foreign (4 ) (1 ) (5 ) 5 (8 ) (3 )
          Total commercial (808 ) (3,912 )
     Residential mortgage 1,976 (1,527 ) 449 1,147 (644 ) 503
     Home equity lines 5 (178 ) (173 ) 58 (470 ) (412 )
     Direct/Indirect consumer 166 (347 ) (181 ) (9 ) (312 ) (321 )
     Consumer finance (297 ) (39 ) (336 ) (1,390 ) 4 (1,386 )
     Credit card 697 (6 ) 691 538 (222 ) 316
     Foreign consumer (1 ) (5 ) (6 ) (10 ) (43 ) (53 )
          Total consumer 444 (1,353 )
               Total loans and leases (364 ) (5,265 )
Other earning assets 1,032 (820 ) 212 2 (550 ) (548 )
               Total interest income $ (464 ) $ (5,886 )
Increase (decrease) in interest expense
Domestic interest-bearing deposits:
     Savings 19 (49 ) (30 ) 15 (90 ) (75 )
     NOW and money market deposit accounts 180 (313 ) (133 ) 376 (1,505 ) (1,129 )
     Consumer CDs and IRAs 116 (300 ) (184 ) (353 ) (532 ) (885 )
     Negotiated CDs, public funds and other time deposits 103 (101 ) 2 (80 ) (82 ) (162 )
          Total domestic interest-bearing deposits (345 ) (2,251 )
Foreign interest-bearing deposits:
     Banks located in foreign countries (43 ) 4 (39 ) (359 ) (252 ) (611 )
     Governments and official institutions (2 ) (10 ) (12 ) (54 ) (55 ) (109 )
     Time, savings and other 4 (134 ) (130 ) (148 ) (333 ) (481 )
          Total foreign interest-bearing deposits (181 ) (1,201 )
               Total interest-bearing deposits (526 ) (3,452 )
Federal funds purchased, securities sold under agreements
     to repurchase and other short-term borrowings 877 (1,015 ) (138 ) 530 (2,608 ) (2,078 )
Trading account liabilities 222 (197 ) 25 62 44 106
Long-term debt 91 (512 ) (421 ) (196 ) (1,144 ) (1,340 )
               Total interest expense (1,060 ) (6,764 )
                    Net increase in net interest income $ 596 $ 878
(1)  The changes for each category of interest income and expense are divided between the portion of change attributable to the variance in volume or rate for that category. The change in rate/volume variance has been allocated to the rate variance.


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