Citibank 2011 Annual Report Download - page 179

157
5. INTEREST REVENUE AND EXPENSE
For the years ended December 31, 2011, 2010 and 2009, respectively, interest
revenue and expense consisted of the following:
In millions of dollars 2011  
Interest revenue
,OANæINTERESTæINCLUDINGæFEES $ 50,281    
$EPOSITSæWITHæBANKS 1,750  
&EDERALæFUNDSæSOLDæANDæSECURITIESææ
BORROWEDæORæPURCHASEDæUNDERææ
AGREEMENTSæTOæRESELL 3,631  
)NVESTMENTSæINCLUDINGæDIVIDENDS 8,320  
4RADINGæACCOUNTæASSETSæ 8,186  
/THERæINTEREST 513  
Total interest revenue $ 72,681    
Interest expense
$EPOSITSæ $ 8,556    
&EDERALæFUNDSæPURCHASEDæANDæ
SECURITIESæLOANEDæORæSOLDæUNDERæ
AGREEMENTSæTOæREPURCHASE 3,197  
4RADINGæACCOUNTæLIABILITIESæ 408  
3HORTTERMæBORROWINGS 650  
,ONGTERMæDEBT 11,423  
Total interest expense $ 24,234    
Net interest revenue $48,447    
0ROVISIONæFORæLOANæLOSSESæ 11,773  
Net interest revenue after
provision for loan losses $ 36,674    
æ )NTERESTæEXPENSEæONæTrading account liabilitiesæOFæICGæISæREPORTEDæASæAæREDUCTIONæOFæINTERESTæREVENUEæ
FROMæTrading account assets
æ )NCLUDESæDEPOSITæINSURANCEæFEESæANDæCHARGESæOFææBILLIONææMILLIONæANDææBILLIONæFORæTHEæ
æMONTHSæENDEDæ$ECEMBERææææANDææRESPECTIVELYæ4HEæMONTHæPERIODæENDEDæ
$ECEMBERæææINCLUDESæTHEæONETIMEæ&$)#æSPECIALæASSESSMENT
6. COMMISSIONS AND FEES
The table below sets forth Citigroup’s Commissions and fees revenue for
the twelve months ended December 31, 2011, 2010 and 2009, respectively.
The primary components of Commissions and fees revenue for the twelve
months ended December 31, 2011 were credit card and bank card fees,
investment banking fees and trading-related fees.
Credit card and bank card fees are primarily composed of interchange
revenue and certain card fees, including annual fees, reduced by reward
program costs. Interchange revenue and fees are recognized when earned,
except for annual card fees which 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.
Investment banking fees are substantially composed of underwriting and
advisory revenues. Investment banking fees are recognized when Citigroup’s
performance under the terms of the contractual arrangements is completed,
which is typically at the closing of the transaction. Underwriting revenue
is recorded in Commissions and fees net of both reimbursable and non-
reimbursable expenses, consistent with the AICPA Audit and 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; sale of mutual funds, insurance 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.
The following table presents commissions and fees revenue for the years
ended December 31:
In millions of dollars 2011  
#REDITæCARDSæANDæBANKæCARDS $ 3,603    
)NVESTMENTæBANKING 2,451  
3MITHæ"ARNEY — 
4RADINGRELATED 2,587  
4RANSACTIONæSERVICES 1,520  
/THERæ#ONSUMERæ 931  
#HECKINGRELATED 926  
0RIMERICA — 
,OANæSERVICING 251  
#ORPORATEæFINANCEæ 519  
/THER 62  
Total commissions and fees $12,850  
æ 0RIMARILYæCONSISTSæOFæFEESæFORæINVESTMENTæFUNDæADMINISTRATIONæANDæMANAGEMENTæTHIRDPARTYæCOLLECTIONSæ
COMMERCIALæDEMANDæDEPOSITæACCOUNTSæANDæCERTAINæCREDITæCARDæSERVICES
æ #ONSISTSæPRIMARILYæOFæFEESæEARNEDæFROMæSTRUCTURINGæANDæUNDERWRITINGæLOANæSYNDICATIONS