New FDIC report confirms bank fee income increasing

WASHINGTON-A report recently released by the Federal Deposit Insurance Corporation (FDIC) includes new details that highlight banks' fastest-growing revenue component: noninterest income. This portion of banks' income has been growing for nearly 25 years. The category "all other noninterest income," including income from unconsolidated subsidiaries, data processing services, ATM usage fees charged to depositors from other institutions, as well as service charges and fees for a variety of other services, remained the largest component of total noninterest income. Representing 32.7% of banks' noninterest income for 2001, all other noninterest income" accounted for $51.3 billion. The new categories of data show securitization income (net gains on sales of securitized assets plus non-servicing fees) coming in at $16.4 billion for the year; servicing fees, at $11.6 billion; fees and commissions from investment banking, advisory, brokerage, and underwriting services totaled $9.1 billion; sales of loans, other real estate, and other assets yielded net gains of $7.0 billion; insurance commissions and fees totaled $2.9 billion; and venture capital activities produced a net loss of $740 million for the year.