Non-interest income

  2007
£m		 2006
£m		 2005
£m
Fees and commissions receivable 8,465 7,116 6,750
Fees and commissions payable (2,311) (1,922) (1,841)
Income from trading activities 1,327 2,675 2,343
Other operating income 4,857 3,564 2,620
  12,338 11,433 9,872
       
Insurance premium income 6,398 6,243 6,076
Reinsurers' share (289) (270) (297)
  6,109 5,973 5,779
  18,447 17,406 15,651

2007 compared with 2006

Non-interest income increased by 6%, £1,041 million to £18,447 million, including £960 million from the acquisition of ABN AMRO. Good organic growth was offset by write-downs in Global Banking & Markets in respect of US mortgage-related and leveraged finance exposures. Non-interest income represents 59% of total income (2006 – 62%). Excluding general insurance premium income, non-interest income rose by 8%, £905 million to £12,338 million.

Within non-interest income, fees and commissions receivable increased by 19% or £1,349 million, to £8,465 million, while fees and commissions payable increased by 20%, £389 million to £2,311 million.

Income from trading activities was down from £2,675 million to £1,327 million. Interest rate and currency trading activities benefitted from increased volatility and there was good growth from a broadening product range. These improvements were, however, more than offset by credit markets write downs (see Credit market exposures).

Other operating income increased by 36%, £1,293 million to £4,857 million. This was principally due to growth in income from rental and asset-backed activities and principal investments in Corporate Markets.

General insurance premium income, after reinsurance, increased by 2% to £6,109 million with good growth in policies in the core businesses, particularly in Continental Europe.

2006 compared with 2005

Non-interest income increased by £1,755 million, 11% to £17,406 million reflecting strong organic growth in all divisions especially Global Banking & Markets, up 26% and Wealth Management, up 14%. Non-interest income represents 62% of total income (2005 – 61%). Excluding general insurance premium income, non-interest income rose by 16% or £1,561 million to £11,433 million.

Within non-interest income, fees and commissions receivable increased by 5% or £366 million, to £7,116 million, while fees and commissions payable increased by 4%, £81 million to £1,922 million.

Income from trading activities, which primarily arises from providing customers with debt and risk management products in interest rate, currency and credit, was up £332 million, 14%, reflecting increased customer volumes.

Other operating income increased by 36%, £944 million to £3,564 million. This was principally due to growth in income from rental and asset-backed activities and principal investments in Corporate Markets.

General insurance premium income, after reinsurance, rose by 3%, or £194 million to £5,973 million with good growth in motor policies in the UK and Continental Europe.