Schedule of allowance for credit losses and investment in loans by portfolio segment |
| | | | | | | | | | | | In millions of dollars | 2020 | 2019 | 2018 | Allowance for credit losses on loans (ACLL) at beginning of year | $ | 12,783 | | $ | 12,315 | | $ | 12,355 | | Adjustments to opening balance: | | | | Financial instruments—credit losses (CECL)(1) | 4,201 | | — | | — | | Variable post-charge-off third-party collection costs(1) | (443) | | — | | — | | Adjusted ACLL at beginning of year | $ | 16,541 | | $ | 12,315 | | $ | 12,355 | | Gross credit losses on loans | $ | (9,263) | | $ | (9,341) | | $ | (8,665) | | Gross recoveries on loans | 1,652 | | 1,573 | | 1,552 | | Net credit losses on loans (NCLs) | $ | (7,611) | | $ | (7,768) | | $ | (7,113) | | NCLs | $ | 7,611 | | $ | 7,768 | | $ | 7,113 | | Net reserve builds for loans | 7,635 | | 364 | | 394 | | Net specific reserve builds (releases) for loans | 676 | | 86 | | (153) | | Total provision for credit losses on loans (PCLL) | $ | 15,922 | | $ | 8,218 | | $ | 7,354 | | Initial allowance for credit losses on newly purchased credit-deteriorated assets during the period | 4 | | — | | — | | Other, net (see table below) | 100 | | 18 | | (281) | | ACLL at end of year | $ | 24,956 | | $ | 12,783 | | $ | 12,315 | | Allowance for credit losses on unfunded lending commitments (ACLUC) at beginning of year(2) | $ | 1,456 | | $ | 1,367 | | $ | 1,258 | | Adjustment to opening balance for CECL adoption(1) | (194) | | — | | — | | Provision (release) for credit losses on unfunded lending commitments | 1,446 | | 92 | | 113 | | Other, net(3) | (53) | | (3) | | (4) | | ACLUC at end of year(2) | $ | 2,655 | | $ | 1,456 | | $ | 1,367 | | Total allowance for credit losses on loans, leases and unfunded lending commitments | $ | 27,611 | | $ | 14,239 | | $ | 13,682 | |
| | | | | | | | | | | | Other, net details | | | | In millions of dollars | 2020 | 2019 | 2018 | Sales or transfers of various consumer loan portfolios to HFS | | | | Transfer of real estate loan portfolios | $ | (4) | | $ | (42) | | $ | (91) | | Transfer of other loan portfolios | — | — | (110) | | Sales or transfers of various consumer loan portfolios to HFS | $ | (4) | | $ | (42) | | $ | (201) | | FX translation | 97 | | 60 | | (60) | | Other | 7 | | — | | (20) | | Other, net | $ | 100 | | $ | 18 | | $ | (281) | |
(1)See “Accounting Changes” in Note 1 to the Consolidated Financial Statements for additional details. (2)Represents additional credit loss reserves for unfunded lending commitments and letters of credit recorded in Other liabilities on the Consolidated Balance Sheet. (3)2020 includes a non-provision transfer of $68 million, representing reserves on performance guarantees. The reserves on these contracts have been reclassified out of the allowance for credit losses on unfunded lending commitments and into Other liabilities on the Consolidated Balance Sheet beginning in 2020. Allowance for Credit Losses on Loans and End-of-Period Loans at December 31, 2020 | | | | | | | | | | | | | | | In millions of dollars | Corporate | Consumer | Total | | | | ACLL at beginning of year | $ | 2,886 | | $ | 9,897 | | $ | 12,783 | | | | | Adjustments to opening balance: | | | | | | | Financial instruments—credit losses (CECL)(1) | (721) | | 4,922 | | 4,201 | | | | | Variable post-charge-off third-party collection costs(1) | — | | (443) | | (443) | | | | | Adjusted ACLL at beginning of year | $ | 2,165 | | $ | 14,376 | | $ | 16,541 | | | | | Charge-offs | $ | (1,072) | | $ | (8,191) | | $ | (9,263) | | | | | Recoveries | 86 | | 1,566 | | 1,652 | | | | | Replenishment of net charge-offs | 986 | | 6,625 | | 7,611 | | | | | Net reserve builds (releases) | 2,890 | | 4,745 | | 7,635 | | | | | Net specific reserve builds (releases) | 282 | | 394 | | 676 | | | | | Initial allowance for credit losses on newly purchased credit-deteriorated assets during the year | — | | 4 | | 4 | | | | | Other | 65 | | 35 | | 100 | | | | | Ending balance | $ | 5,402 | | $ | 19,554 | | $ | 24,956 | | | | | Allowance for credit losses on loans | | | | | | | Collectively evaluated | $ | 4,887 | | $ | 18,207 | | $ | 23,094 | | | | | Individually evaluated | 515 | | 1,345 | | 1,860 | | | | | Purchased credit deteriorated | — | | 2 | | 2 | | | | | Total allowance for credit losses on loans | $ | 5,402 | | $ | 19,554 | | $ | 24,956 | | | | | Loans, net of unearned income | | | | | | | Collectively evaluated | $ | 376,677 | | $ | 283,885 | | $ | 660,562 | | | | | Individually evaluated | 3,527 | | 4,799 | | 8,326 | | | | | Purchased credit deteriorated | — | | 141 | | 141 | | | | | Held at fair value | 6,840 | | 14 | | 6,854 | | | | | Total loans, net of unearned income | $ | 387,044 | | $ | 288,839 | | $ | 675,883 | | | | |
(1)See “Accounting Changes” in Note 1 to the Consolidated Financial Statements for additional details.
Allowance for Credit Losses on Loans and End-of-Period Loans at December 31, 2019 | | | | | | | | | | | | | | | | | | | | | In millions of dollars | Corporate | Consumer | Total | | | | ACLL at beginning of year | $ | 2,811 | | $ | 9,504 | | $ | 12,315 | | | | | Charge-offs | (487) | | (8,854) | | (9,341) | | | | | Recoveries | 95 | | 1,478 | | 1,573 | | | | | Replenishment of net charge-offs | 392 | | 7,376 | | 7,768 | | | | | Net reserve builds (releases) | 96 | | 268 | | 364 | | | | | Net specific reserve builds (releases) | (21) | | 107 | | 86 | | | | | Other | — | | 18 | | 18 | | | | | Ending balance | $ | 2,886 | | $ | 9,897 | | $ | 12,783 | | | | | Allowance for credit losses on loans | | | | | | | Collectively evaluated | $ | 2,587 | | $ | 8,706 | | $ | 11,293 | | | | | Individually evaluated | 299 | | 1,190 | | 1,489 | | | | | Purchased credit deteriorated | — | | 1 | | 1 | | | | | Total allowance for credit losses on loans | $ | 2,886 | | $ | 9,897 | | $ | 12,783 | | | | | Loans, net of unearned income | | | | | | | Collectively evaluated | $ | 383,828 | | $ | 304,794 | | $ | 688,622 | | | | | Individually evaluated | 2,040 | | 4,608 | | 6,648 | | | | | Purchased credit deteriorated | — | | 128 | | 128 | | | | | Held at fair value | 4,067 | | 18 | | 4,085 | | | | | Total loans, net of unearned income | $ | 389,935 | | $ | 309,548 | | $ | 699,483 | | | | |
Allowance for Credit Losses on Loans at December 31, 2018 | | | | | | | | | | | | | | | In millions of dollars | Corporate | Consumer | Total | | | | ACLL at beginning of year | $ | 2,943 | | $ | 9,412 | | $ | 12,355 | | | | | Charge-offs | (343) | | (8,322) | | (8,665) | | | | | Recoveries | 138 | | 1,414 | | 1,552 | | | | | Replenishment of net charge-offs | 205 | | 6,908 | | 7,113 | | | | | Net reserve builds (releases) | 42 | | 352 | | 394 | | | | | Net specific reserve builds (releases) | (151) | | (2) | | (153) | | | | | Other | $ | (23) | | $ | (258) | | $ | (281) | | | | | Ending balance | $ | 2,811 | | $ | 9,504 | | $ | 12,315 | | | | |
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