INTEREST REVENUE AND EXPENSE

6 Months Ended

Jun. 30, 2012

INTEREST REVENUE AND EXPENSE

INTEREST REVENUE AND EXPENSE

4.    INTEREST REVENUE AND EXPENSE

        For the three- and six-month periods ended June 30, 2012 and 2011, respectively, interest revenue and expense consisted of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
In millions of dollars	2012		2011		2012		2011
Interest revenue
Loan interest, including fees	$	11,975	$	12,771	$	24,457	$	25,057
Deposits with banks		331		460		698		919
Federal funds sold and securities borrowed or purchased under agreements to resell		1,047		903		1,990		1,741
Investments, including dividends		1,854		2,126		3,764		4,537
Trading account assets(1)		1,695		2,210		3,392		4,220
Other interest		132		116		270		267
Total interest revenue	$	17,034	$	18,586	$	34,571	$	36,741
Interest expense
Deposits(2)	$	1,886	$	2,230	$	3,908	$	4,244
Federal funds purchased and securities loaned or sold under agreements to repurchase		898		933		1,593		1,670
Trading account liabilities(1)		52		168		105		252
Short-term borrowings		183		168		391		338
Long-term debt		2,422		2,939		5,034		5,987
Total interest expense	$	5,441	$	6,438	$	11,031	$	12,491
Net interest revenue	$	11,593	$	12,148	$	23,540	$	24,250
Provision for loan losses		2,585		3,181		5,413		6,080
Net interest revenue after provision for loan losses	$	9,008	$	8,967	$	18,127	$	18,170

(1)

Interest expense on Trading account liabilities of ICG is reported as a reduction of interest revenue from Trading account assets.

(2)

Includes deposit insurance fees and charges of $297 million and $367 million for the three months ended June 30, 2012 and 2011, respectively, and $669 million and $587 million for the six months ended June 30, 2012 and 2011, respectively.