Comerica 2007 Annual Report Download - page 29

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Management expects full-year 2008 average net credit-related charge-offs between 45 and 50 basis points of
average loans, with charge-offs in the first half higher than in the second half of 2008. The provision for credit
losses is expected to exceed net charge-offs.
Noninterest Income
2007 2006 2005
Years Ended December 31
(in millions)
Service charges on deposit accounts ....................................... $221 $218 $218
Fiduciary income . . . .................................................. 199 180 174
Commercial lending fees ............................................... 75 65 63
Letter of credit fees .................................................... 63 64 70
Foreign exchange income ............................................... 40 38 37
Brokerage fees. . ...................................................... 43 40 36
Card fees ........................................................... 54 46 39
Bank-owned life insurance .............................................. 36 40 38
Net income from principal investing and warrants. . .......................... 19 10 17
Net securities gains .................................................... 7——
Net gain (loss) on sales of businesses...................................... 3(12) 1
Income from lawsuit settlement . . . ....................................... — 47 —
Other noninterest income .............................................. 128 119 126
Total noninterest income . . . .......................................... $888 $855 $819
Noninterest income increased $33 million, or four percent, to $888 million in 2007, compared to
$855 million in 2006, and increased $36 million, or five percent, in 2006, compared to $819 million in
2005. Excluding net securities gains, net gain (loss) on sales of businesses and income from lawsuit settlement,
noninterest income increased seven percent in 2007 and less than one percent in 2006. An analysis of increases
and decreases by individual line item is presented below.
Service charges on deposit accounts increased $3 million, or one percent, to $221 million in 2007, compared
to $218 million in both 2006 and 2005.
Fiduciary income increased $19 million, or 11 percent, in 2007 and increased $6 million, or four percent, in
2006. Personal and institutional trust fees are the two major components of fiduciary income. These fees are based
on services provided and assets managed. Fluctuations in the market values of the underlying assets managed,
which include both equity and fixed income securities, impact fiduciary income. The increase in 2007 and 2006
was due to net new business and market appreciation.
Commercial lending fees increased $10 million, or 16 percent, in 2007, compared to an increase of
$2 million, or two percent, in 2006. The increases in 2007 and 2006 were primarily due to higher commercial
loan commitment and participation fees.
Letter of credit fees decreased $1 million, or two percent, in 2007, compared to a decrease of $6 million, or
eight percent, in 2006. The 2007 decrease in letter of credit fees was principally due to competitive pricing
pressures and lower demand resulting from the recent challenges in the residential real estate market. Of the 2006
decline, $3 million reflected the impact, in 2005, of an adjustment of deferred fee amortization to more closely
align the amortization periods with actual terms of the letters of credit.
Foreign exchange income increased $2 million, or five percent, to $40 million in 2007, compared to
$38 million and $37 million in 2006 and 2005, respectively. The increase in 2007 was primarily due to the impact
of exchange rate changes on the Canadian dollar denominated net assets held at the Corporation’s Canadian
branch.
Brokerage fees of $43 million increased $3 million, or nine percent, in 2007, compared to $40 million and
$36 million in 2006 and 2005, respectively. Brokerage fees include commissions from retail broker transactions
27