Citibank 2013 Annual Report Download - page 192

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5. COMMISSIONS AND FEES
The table below sets forth Citigroup’s Commissions and fees revenue for the
years ended December 31, 2013, 2012 and 2011. The primary components of
Commissions and fees revenue for the year ended December 31, 2013 were
credit card and bank card fees, investment banking fees, trading-related fees
and Transaction Services.
Credit card and bank card fees primarily are 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, 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 (see Note 6 to the
Consolidated Financial Statements).
The following table presents Commissions and fees revenue for the years
ended December 31:
In millions of dollars 2013 2012 2011
Credit cards and bank cards $ 2,472 $ 2,775 $ 3,360
Investment banking 3,315 2,991 2,451
Trading-related 2,532 2,296 2,587
Transaction services 1,847 1,733 1,821
Other Consumer (1) 911 908 990
Checking-related 551 615 624
Loan servicing 500 313 251
Corporate finance (2) 516 516 519
Other 469 585 62
Total commissions and fees $13,113 $12,732 $12,665
(1) Primarily consists of fees for investment fund administration and management, third-party collections,
commercial demand deposit accounts and certain credit card services.
(2) Consists primarily of fees earned from structuring and underwriting loan syndications.