Discover 2015 Annual Report Download - page 79
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-63-
Rate/Volume Variance Analysis(1)
(dollars in millions)
Year Ended December 31, 2015 vs.
Year Ended December 31, 2014 Year Ended December 31, 2014 vs.
Year Ended December 31, 2013
Volume Rate Total Volume Rate Total
Increase/(decrease) in net interest income due to changes in:
Interest-earning assets
Cash and cash equivalents..................... $ 7 $ 1 $ 8 $ 4 $ — $ 4
Investment securities .............................. (19) 1 (18) (19) 12 (7)
Loan receivables:
Credit card ....................................... 271 (4) 267 336 45 381
Personal loans .................................. 78 (15) 63 110 (6) 104
Private student loans.......................... 59 7 66 62 (2) 60
PCI student loans............................... (35) (5) (40) (33) 21 (12)
Mortgage loans held for sale.............. (1) (1) (2) (3) 1 (2)
Other ............................................... 235314
Total loan receivables .................... 374 (15) 359 475 60 535
Total interest income ................ 362 (13) 349 460 72 532
Interest-bearing liabilities
Interest-bearing deposits
Time deposits ................................... (3) (13) (16) (21) (95) (116)
Money market deposits...................... (3) 4 1 17 3 20
Other interest-bearing savings
deposits ......................................... 19 5 24 11 1 12
Total interest-bearing deposits ........ 13 (4) 9 7 (91)(84)
Borrowings
Short-term borrowings ....................... (1) — (1) (1) — (1)
Securitized borrowings ...................... 4 28 32 7 6 13
Other long-term borrowings............... 119 (30) 89 86 (26) 60
Total borrowings ........................... 122 (2) 120 92 (20) 72
Total interest expense................. 135 (6) 129 99 (111) (12)
Net interest income.................... $ 227 $ (7) $ 220 $ 361 $ 183 $ 544
(1) The rate/volume variance for each category has been allocated on a consistent basis between rate and volume variances between the years ended December 31,
2015, 2014 and 2013 based on the percentage of the rate or volume variance to the sum of the two absolute variances.