Net fee and commission income

12 Months Ended

Dec. 31, 2024

Note 6: Net fee and commission income


Year ended 31 December 2024	Retail £m	Commercial Banking £m		Insurance, Pensions and Investments £m		Other £m	Total £m
Fee and commission income:
Current accounts	423		221		–	–	644
Credit and debit card fees	829		457		–	–	1,286
Commercial banking and treasury fees	–		372		–	1	373
Unit trust and insurance broking	–		–		71	–	71
Factoring	–		69		–	–	69
Other fees and commissions	74		148		261	17	500
Total fee and commission income	1,326		1,267		332	18	2,943
Fee and commission expense	(745)		(334)		(89)	(16)	(1,184)
Net fee and commission income	581		933		243	2	1,759


Year ended 31 December 2023	Retail £m	Commercial Banking £m		Insurance, Pensions and Investments £m		Other £m	Total £m
Fee and commission income:
Current accounts	406		218		–	–	624
Credit and debit card fees	800		464		–	–	1,264
Commercial banking and treasury fees	–		334		–	–	334
Unit trust and insurance broking	–		–		69	–	69
Factoring	–		75		–	–	75
Other fees and commissions	85		186		264	25	560
Total fee and commission income	1,291		1,277		333	25	2,926
Fee and commission expense	(673)		(322)		(84)	(16)	(1,095)
Net fee and commission income	618		955		249	9	1,831

Note 6: Net fee and commission income continued


Year ended 31 December 2022	Retail £m	Commercial Banking £m		Insurance, Pensions and Investments £m		Other £m	Total £m
Fee and commission income:
Current accounts	421		225		–	–	646
Credit and debit card fees	735		460		–	–	1,195
Commercial banking and treasury fees	–		310		–	1	311
Unit trust and insurance broking	–		–		78	–	78
Factoring	–		79		–	–	79
Other fees and commissions	64		169		233	15	481
Total fee and commission income	1,220		1,243		311	16	2,790
Fee and commission expense	(665)		(315)		(72)	(18)	(1,070)
Net fee and commission income	555		928		239	(2)	1,720

Fees and commissions which are an integral part of the effective interest rate form part of net interest income shown in note 5. Fees and

commissions relating to instruments that are held at fair value through profit or loss are included within net trading income shown in

note 7.

In determining the disaggregation of fees and commissions the Group has considered how the nature, amount, timing and uncertainty of

revenue and cash flows are affected by economic factors, including those that are impacted by climate-related factors. It has determined

that the above disaggregation by product type provides useful information that does not aggregate items that have substantially different

characteristics.

At 31 December 2024, the Group held on its balance sheet £163 million (31 December 2023: £163 million) in respect of services provided to

customers and £75 million (31 December 2023: £69 million) in respect of amounts received from customers for services to be provided after

the balance sheet date. Current unsatisfied performance obligations amount to £195 million (31 December 2023: £172 million); the Group

expects to receive substantially all of this revenue by the end of 2026.

Income recognised during the year included £28 million (2023: £32 million) in respect of amounts included in the contract liability balance

at the start of the year and £nil (2023: £2 million) in respect of amounts from performance obligations satisfied in previous years.

The most significant performance obligations undertaken by the Group are in respect of current accounts, the provision of other banking

services for commercial customers and credit and debit card services.

In respect of current accounts, the Group receives fees for the provision of bank account and transaction services such as ATM services,

fund transfers, overdraft facilities and other value-added offerings.

For commercial customers, alongside its provision of current accounts, the Group provides other corporate banking services including

factoring and commitments to provide loan financing. Loan commitment fees are included in fees and commissions where the loan is not

expected to be drawn down by the customer.

The Group receives interchange and merchant fees, together with fees for overseas use and cash advances, for provision of card services to

cardholders and merchants.