Comerica 2008 Annual Report Download - page 23

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NONINTEREST INCOME
Years Ended
December 31
2008 2007 2006
(in millions)
Service charges on deposit accounts ................................... $229 $221 $218
Fiduciary income ................................................ 199 199 180
Commercial lending fees ........................................... 69 75 65
Letter of credit fees .............................................. 69 63 64
Card fees ..................................................... 58 54 46
Brokerage fees .................................................. 42 43 40
Foreign exchange income .......................................... 40 40 38
Bank-owned life insurance ......................................... 38 36 40
Net securities gains .............................................. 67 7—
Net gain (loss) on sales of businesses .................................. —3 (12)
Income from lawsuit settlement ...................................... ——47
Other noninterest income .......................................... 82 147 129
Total noninterest income ......................................... $893 $888 $855
Noninterest income increased $5 million, or less than one percent, to $893 million in 2008, compared to
$888 million in 2007, and increased $33 million, or four percent, in 2007, compared to $855 million in 2006.
Excluding net securities gains, net gain (loss) on sales of businesses and income from lawsuit settlement,
noninterest income decreased six percent in 2008, compared to 2007, and increased seven percent in 2007,
compared to 2006. An analysis of increases and decreases by individual line item is presented below.
Service charges on deposit accounts increased $8 million, or three percent, to $229 million in 2008,
compared to $221 million in 2007, and increased $3 million, or one percent, in 2007, compared to $218 million
in 2006. The increase in 2008 was primarily due to lower earnings credit allowances provided to business
customers as a result of the interest rate environment.
Fiduciary income of $199 million was unchanged in 2008, compared to 2007, and increased $19 million, or
11 percent, in 2007, compared to $180 million 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. In 2008, lower fees related to the market decline were offset by net new business. The
increase in 2007 was due to net new business and market appreciation.
Commercial lending fees decreased $6 million, or eight percent, in 2008, compared to an increase of
$10 million, or 16 percent, in 2007. The majority of the decrease in 2008 resulted from lower participation fees
and lower unused commercial loan commitments. The increase in 2007 was primarily due to higher unused
commercial loan commitments and participation fees.
Letter of credit fees increased $6 million, or 10 percent, in 2008, compared to a decrease of $1 million, or
two percent, in 2007. The increase in 2008 was principally due to one-time adjustments related to the timing of
recognition of letter of credit fees. The decrease in 2007 was principally due to competitive pricing pressures and
lower demand resulting from the recent challenges in the residential real estate market.
Card fees, which consist primarily of interchange fees earned on debit and commercial cards, increased
$4 million, or nine percent, to $58 million in 2008, compared to $54 million in 2007, and increased $8 million, or
16 percent, in 2007, compared to $46 million in 2006. Growth in both 2008 and 2007 resulted primarily from an
increase in transaction volume caused by the continued shift to electronic banking, new customer accounts and
new products.
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