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COMMISSIONS AND FEES
12 Months Ended
Dec. 31, 2017
Banking and Thrift [Abstract]  
COMMISSIONS AND FEES
COMMISSIONS AND FEES
The primary components of Citi’s Commissions and fees revenue are investment banking fees, trading-related fees, fees related to trade and securities services in ICG and credit card and bank card fees.
Investment banking fees are substantially composed of underwriting and advisory revenues and are recognized when Citigroup’s performance under the terms of a contractual arrangement is completed, which is typically at the closing of a transaction. Underwriting revenue is recorded in Commissions and fees, net of both reimbursable and non-reimbursable expenses, consistent with the AICPA Accounting Guide for Brokers and Dealers in Securities (codified in ASC 940-605-05-1). Expenses associated with advisory transactions are recorded in Other operating expenses, net of client reimbursements. Out-of-pocket expenses are deferred and recognized at the time the related revenue is recognized. In general, expenses incurred related to investment banking transactions that fail to close (are not consummated) are recorded gross in Other operating expenses.
Trading-related fees primarily include commissions and fees from the following: executing transactions for clients on



exchanges and over-the-counter markets; sales of mutual funds and other annuity products; and assisting clients in clearing transactions, providing brokerage services and other such activities. Trading-related fees are recognized when earned in Commissions and fees. Gains or losses, if any, on these transactions are included in Principal transactions (see Note 6 to the Consolidated Financial Statements).
Credit card and bank card fees are primarily composed of interchange revenue and certain card fees, including annual fees, reduced by reward program costs and certain partner payments. Interchange revenue and fees are recognized when earned. Annual card fees are deferred and amortized on a straight-line basis over a 12-month period. Reward costs are recognized when points are earned by the customers.
Insurance premiums consists of premium income from insurance policies which Citi has underwritten and sold to policyholders. Insurance distribution revenue consists of commissions earned from third party insurance companies for marketing and selling insurance policies on behalf of such entities.
The following table presents Commissions and fees revenue:
In millions of dollars
2017
2016
2015
Investment banking
$
3,613

$
2,847

$
3,423

Trading-related
3,015

2,799

3,138

Trade and securities services
1,632

1,564

1,735

Credit cards and bank cards
1,510

1,324

1,786

Corporate finance(1)
713

686

493

Other consumer(2)
703

659

685

Insurance distribution revenue(3)
514

548

621

Insurance premiums (3)
122

288

1,224

Checking-related
478

467

497

Loan servicing
312

325

404

Other
327

431

479

Total commissions and fees
$
12,939

$
11,938

$
14,485

(1)
Consists primarily of fees earned from structuring and underwriting loan syndications.
(2)
Primarily consists of fees for investment fund administration and management, third-party collections, commercial demand deposit accounts and certain credit card services.
(3)
Insurance premiums were previously separately reported on the Consolidated Statement of Income.