Fee Income from Contracts with Customers

9 Months Ended

Sep. 30, 2021

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, 2021 and 2020. See Note 22, "Fee Income from Contracts with Customers," in our 2020 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, 2020.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in millions)
Credit card fees, net	$	—	$	10	$	23	$	30
Trust and investment management fees	26		34		81		98
Other fees and commissions:
Account services	73		66		216		185
Credit facilities	76		67		248		204
Other fees	11		11		32		36
Total other fees and commissions	160		144		496		425
Servicing and other fees from HSBC affiliates	79		79		232		255
Insurance(1)	2		2		5		6
Total fee income from contracts with customers	267		269		837		814
Other non-fee revenues	(25)		87		93		393
Total other revenues(2)	$	242	$	356	$	930	$	1,207

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

(2)See Note 16, "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 $68 million during the three and nine months ended September 30, 2021, respectively, compared with $18 million and $53 million during the three and nine months ended September 30, 2020, respectively. Credit card rewards program costs totaled $26 million and $50 million during the three and

nine months ended September 30, 2021, respectively, compared with $10 million and $28 million during the three and nine months ended September 30, 2020, 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 19, "Guarantee Arrangements, Pledged Assets and Repurchase Agreements," and Note 20, "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 $5 million and $3 million at September 30, 2021 and December 31, 2020, 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 2020 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.