Fee Income from Contracts with Customers

6 Months Ended

Jun. 30, 2020

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 six months ended June 30, 2020 and 2019. See Note 22, "Fee Income from Contracts with Customers," in our 2019 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, 2019.

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(in millions)
Credit card fees, net	$	9	$	18	$	20	$	30
Trust and investment management fees	33		31		64		61
Other fees and commissions:
Account services	58		68		119		133
Credit facilities	64		81		137		150
Other fees	15		13		32		26
Total other fees and commissions	137		162		288		309
Servicing and other fees from HSBC affiliates	81		88		169		169
Insurance(1)	2		4		4		6
Total fee income from contracts with customers	262		303		545		575
Other non-fee revenues	202		133		306		251
Total other revenues(2)	$	464	$	436	$	851	$	826

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

⁽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, netWe recognized interchange fees of $13 million and $35 million during the three and six months ended June 30, 2020, respectively, compared with $26 million and $48 million during the three and six months ended June 30, 2019, respectively. Credit card rewards program costs totaled $5 million and $18 million during the three and six months ended June 30, 2020, respectively, compared with $10 million and $22 million during the three and six months ended June 30, 2019, 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 $2 million at June 30, 2020 and December 31, 2019, 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 2019 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.