Fee Income from Contracts with Customers

6 Months Ended

Jun. 30, 2023

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, 2023 and 2022. See Note 23, "Fee Income from Contracts with Customers," in our 2022 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, 2022.

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Credit card fees, net	$	12	$	12	$	23	$	27
Trust and investment management fees	32		34		63		60
Other fees and commissions:
Account services	73		70		139		137
Credit facilities	76		71		149		171
Other fees	8		19		17		30
Total other fees and commissions	157		160		305		338
Servicing and other fees from HSBC affiliates	77		87		151		188
Insurance(1)	1		1		2		2
Total fee income from contracts with customers	279		294		544		615
Other non-fee revenue	169		49		357		214
Total other revenues(2)	$	448	$	343	$	901	$	829

(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 $27 million and $53 million during the three and six months ended June 30, 2023, respectively, compared with $29 million and $54 million during the three and six months ended June 30, 2022, respectively. Credit card rewards program costs totaled $17 million and $33 million during the three and six months ended June 30, 2023, respectively, compared with $15 million and $30 million during the three and six months ended June 30, 2022, 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 at both June 30, 2023 and December 31, 2022. We expect to recognize this revenue over a remaining period of one year or less.

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.