Investment advisory revenue of $93 million increased 1 percent sequentially and increased 3 percent year–over-year, reflecting higher private client services and institutional trust fees, which benefited from improvement in equity and bond market values, partially offset by lower mutual fund fees largely due to the sale of certain Fifth Third funds in the third quarter of 2012.
Card and processing revenue was $66 million in the fourth quarter of 2012, an increase of 2 percent sequentially and 10 percent from the fourth quarter of 2011, reflecting higher transaction volumes, higher levels of consumer spending, and new products.
Other noninterest income totaled $215 million in the fourth quarter of 2012, compared with $78 million in the previous quarter and $24 million in the fourth quarter of 2011. The growth sequentially and from the fourth quarter of 2011 was primarily driven by the $157 million gain on the sale of Vantiv shares. Other noninterest income includes effects of the valuation of the Vantiv warrant and changes in income related to the valuation of the Visa total return swap. For quarters ending December 31, 2012, September 30, 2012, and December 31, 2011, the impact of warrant and put option valuation adjustments were negative $19 million, negative $16 million, and positive $10 million, respectively, and reductions in income related to the Visa total return swap were $15 million, $1 million, and $54 million, respectively. Third quarter 2012 results also included $13 million in gains recognized on the sale of certain Fifth Third funds. Excluding the items detailed above, other noninterest income of $92 million increased approximately $10 million from the previous quarter and increased approximately $24 million from the fourth quarter of 2011.
Net credit-related costs recognized in other noninterest income were $13 million in the fourth quarter of 2012 versus $14 million last quarter and $33 million in the fourth quarter of 2011. Fourth quarter 2012 results included $4 million of net gains on sales of commercial loans held-for-sale and $3 million of fair value charges on commercial loans held-for-sale, as well as $10 million of losses on other real estate owned (OREO). Third quarter 2012 results included $2 million of net gains on sales of commercial loans held-for-sale and $3 million of fair value charges on commercial loans held-for-sale, as well as $11 million of losses on OREO. Fourth quarter 2011 results included $9 million of net gains on sales of commercial loans held-for-sale, $18 million of fair value charges on commercial loans held-for-sale, and $22 million of losses on OREO.
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