Fee Income from Contracts with Customers

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Fee Income from Contracts with Customers

Fee Income from Contracts with Customers

The following table summarizes fee income from contracts with customers disaggregated by type of activity, as well as a reconciliation to total other revenues, during the three and nine months ended September 30, 2022 and 2021. See Note 23, "Fee Income from Contracts with Customers," in our 2021 Form 10-K for a description of the various types of fee-based activities and how revenue associated with these activities is recognized. There have been no significant changes in these activities since December 31, 2021.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Credit card fees, net	$	10	$	—	$	37	$	23
Trust and investment management fees	39		26		99		81
Other fees and commissions:
Account services	67		73		204		216
Credit facilities	59		76		230		248
Other fees	10		11		40		32
Total other fees and commissions	136		160		474		496
Servicing and other fees from HSBC affiliates	77		79		265		232
Insurance(1)	1		2		3		5
Total fee income from contracts with customers	263		267		878		837
Other non-fee revenue (expense)	91		(25)		305		93
Total other revenues(2)	$	354	$	242	$	1,183	$	930

(1)Included within other income (loss) in the consolidated statement of income.

(2)See Note 15, "Business Segments," for a reconciliation of total other revenues on a U.S. GAAP basis to other operating income for each business segment under the Group Reporting Basis.

Credit card fees, net We recognized interchange fees of $24 million and $78 million during the three and nine months ended September 30, 2022, respectively, compared with $24 million and $68 million during the three and nine months ended September 30, 2021, respectively. Credit card rewards program costs totaled $16 million and $46 million during the three and nine months ended September 30, 2022, respectively, compared with $26 million and $50 million during the three and nine months ended September 30, 2021, respectively.

Deferred Fee Income

Information related to deferred fee income on loan commitments, revolving credit facilities and standby letters of credit is included in Note 18, "Guarantee Arrangements, Pledged Assets and Repurchase Agreements," and Note 19, "Fair Value Measurements." Excluding these items, we had deferred fee income related to certain account service fees that are paid upfront and recognized over the service period and annual fees on credit cards which collectively was $3 million and $4 million at September 30, 2022 and December 31, 2021, respectively. We expect to recognize this revenue over a remaining period of one year or less.

Other than trust and investment management fees as discussed in our 2021 Form 10-K, we do not use significant judgments in the determination of the amount and timing of fee income from contracts with customers. Additionally, costs to obtain or fulfill contracts with customers were immaterial.