Financial Statements
Consolidated Statement of Income
Year ended December 31, ($ in millions) |
2006 |
||||||||
Revenue |
|||||||||
Consumer |
$ |
10,472 |
$ |
9,943 |
$ |
10,316 |
|||
Commercial |
3,112 |
2,685 |
2,177 |
||||||
Loans held for sale |
1,777 |
1,652 |
1,269 |
||||||
Operating leases |
7,742 |
7,032 |
6,563 |
||||||
Total financing revenue |
23,103 |
21,312 |
20,325 |
||||||
Interest expense |
15,560 |
13,106 |
9,659 |
||||||
Net financing revenue before provision for credit losses |
7,543 |
8,206 |
10,666 |
||||||
Provision for credit losses |
2,000 |
1,074 |
1,953 |
||||||
Net financing revenue |
5,543 |
7,132 |
8,713 |
||||||
Servicing fees |
1,893 |
1,730 |
1,547 |
||||||
Amortization and impairment of servicing rights |
(23 |
) |
(869 |
) |
(1,112 |
) |
|||
Servicing asset valuation and hedge activities, net |
(1,100 |
) |
61 |
243 |
|||||
Net loan servicing income |
770 |
922 |
678 |
||||||
Insurance premiums and service revenue earned |
4,183 |
3,762 |
3,528 |
||||||
Gain on sale of mortgage and automotive loans |
1,470 |
1,656 |
1,347 |
||||||
Investment income |
2,143 |
1,216 |
845 |
||||||
Gains on sale of equity method investment |
411 |
– |
– |
||||||
Other income |
3,643 |
4,399 |
3,470 |
||||||
Total net financing revenue and other income |
18,163 |
19,087 |
18,581 |
||||||
Expense |
|||||||||
Depreciation expense on operating lease assets |
5,341 |
5,244 |
4,828 |
||||||
Compensation and benefits expense |
2,558 |
3,163 |
2,916 |
||||||
Insurance losses and loss adjustment expenses |
2,420 |
2,355 |
2,371 |
||||||
Other operating expenses |
4,776 |
4,134 |
4,210 |
||||||
Impairment of goodwill and other intangible assets |
840 |
712 |
– |
||||||
Total noninterest expense |
15,935 |
15,608 |
14,325 |
||||||
Income before income tax expense |
2,228 |
3,479 |
4,256 |
||||||
Income tax expense |
103 |
1,197 |
1,362 |
||||||
Net income |
$ |
2,125 |
$ |
2,282 |
$ |
2,894 |
|||
Preferred interest accretion to redemption value and dividends |
(295 |
) |
– |
– |
|||||
Net income available to members |
$ |
1,830 |
$ |
– |
$ |
– |
|||
The Notes to the Consolidated Financial Statements are an integral part of these statements.