Fee-Based Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Fee-Based Revenue from Contracts with Customers

FEE-BASED REVENUE FROM CONTRACTS WITH CUSTOMERS

As more fully described in Note 24 Fee-based Revenue from Contracts with Customers in our 2020 Form 10-K, a subset of our noninterest income relates to certain fee-based revenue within the scope of ASC Topic 606 - Revenue from Contracts with Customers (Topic 606).

Fee-based revenue within the scope of Topic 606 is recognized within our three reportable business segments: Retail Banking, Corporate & Institutional Banking and Asset Management Group. Interest income, income from lease contracts, fair value gains from financial instruments (including derivatives), income from mortgage servicing rights and guarantee products, letter of credit fees, non-refundable fees associated with acquiring or originating a loan and gains from the sale of financial assets are outside of the scope of Topic 606.

The following tables present noninterest income within the scope of Topic 606 disaggregated by segment. A description of the fee-based revenue and how it is recognized for each segment’s principal services and products is included in our 2020 Form 10-K.

Retail Banking

Table 83: Retail Banking Noninterest Income Disaggregation

	Three months ended September 30				Nine months ended September 30
In millions	2021		2020		2021		2020
Product
Debit card fees	$	184	$	136	$	486	$	385
Deposit account fees	142		108		367		339
Brokerage fees	123		94		334		273
Net credit card fees (a)	53		50		157		130
Merchant services	46		40		125		112
Other	76		62		201		170
Total in-scope noninterest income by product	$	624	$	490	$	1,670	$	1,409
Reconciliation to total Retail Banking noninterest income
Total in-scope noninterest income	$	624	$	490	$	1,670	$	1,409
Total out-of-scope noninterest income (b)	38		183		352		637
Total Retail Banking noninterest income	$	662	$	673	$	2,022	$	2,046

(a)Net credit card fees consists of interchange fees of $155 million and $121 million and credit card reward costs of $102 million and $71 million for the three months ended September 30, 2021 and 2020, respectively. Net credit card fees consists of interchange fees of $421 million and $341 million and credit card reward costs of $264 million and $211 million for the nine months ended September 30, 2021 and 2020, respectively.

(b)Out-of-scope noninterest income includes revenue streams that fall under the scope of other accounting and disclosure requirements outside of Topic 606.

Corporate & Institutional Banking

Table 84: Corporate & Institutional Banking Noninterest Income Disaggregation

	Three months ended September 30				Nine months ended September 30
In millions	2021		2020		2021		2020
Product
Treasury management fees	$	323	$	231	$	837	$	665
Capital markets fees	354		132		778		494
Commercial mortgage banking activities	36		31		102		81
Other	17		18		64		55
Total in-scope noninterest income by product	$	730	$	412	$	1,781	$	1,295
Reconciliation to total Corporate & Institutional Banking noninterest income
Total in-scope noninterest income	$	730	$	412	$	1,781	$	1,295
Total out-of-scope noninterest income (a)	326		311		949		848
Total Corporate & Institutional Banking noninterest income	$	1,056	$	723	$	2,730	$	2,143

(a)Out-of-scope noninterest income includes revenue streams that fall under the scope of other accounting and disclosure requirements outside of Topic 606.

Treasury Management Fees

Corporate & Institutional Banking provides corporations with cash and investment management services, receivables and disbursement management services, funds transfer services, international payment services and access to online/mobile information management and reporting services. Within Treasury Management, PNC Global Transfers (formerly BBVA Transfer Services, Inc.) provides wholesale money transfer processing capabilities between the U.S. and Mexico and other countries primarily in Central America and South America. Treasury management fees are primarily recognized over time as we perform these services.

Asset Management Group

Table 85: Asset Management Group Noninterest Income Disaggregation

	Three months ended September 30				Nine months ended September 30
In millions	2021		2020		2021		2020
Customer Type
Personal	$	196	$	164	$	554	$	465
Institutional	56		51		165		150
Total in-scope noninterest income by customer type (a)	$	252	$	215	$	719	$	615
Reconciliation to Asset Management Group noninterest income
Total in-scope noninterest income	$	252	$	215	$	719	$	615
Total out-of-scope noninterest income (b)	4		6		10		14
Total Asset Management Group noninterest income	$	256	$	221	$	729	$	629

(a)Amounts include $248 million of Asset Management Fees and $4 million of Brokerage Fees for the three months ended September 30, 2021. Amounts include $713 million of Asset Management Fees and $6 million of Brokerage Fees for the nine months ended September 30, 2021. Amounts for the three and nine months ended September 30, 2020 consist only of Asset Management Fees. As described in the "Asset Management Services and Brokerage Fees" narrative following this table 85, Brokerage Fees were assumed by the Asset Management Group as a result of the BBVA acquisition..

(b)Out-of-scope noninterest income includes revenue streams that fall under the scope of other accounting and disclosure requirements outside of Topic 606.

Asset Management Services and Brokerage Fees

Asset Management Group provides both personal wealth and institutional asset management services including investment management, custody services, retirement planning, family planning, trust management and retirement plan fiduciary investment services. As a result of the acquisition of BBVA, the Asset Management Group assumed brokerage account client assets, resulting in brokerage fee revenue, included in the table above for the three and nine months ended September 30, 2021. We recognize fee revenue over the term of the customer contract based on the value of assets under management at a point in time.