ALLOWANCE FOR CREDIT LOSSES |
ALLOWANCE FOR CREDIT LOSSES | | | | | | | | | | | | | | | | Three Months Ended September 30, | Nine Months Ended September 30, | In millions of dollars | 2022 | 2021 | 2022 | 2021 | Allowance for credit losses on loans (ACLL) at beginning of period | $ | 15,952 | | $ | 19,238 | | $ | 16,455 | | $ | 24,956 | | | | | | | | | | | | | | | | | | | | | | Gross credit losses on loans | $ | (1,237) | | $ | (1,389) | | $ | (3,689) | | $ | (5,441) | | Gross recoveries on loans | 350 | | 428 | | 1,080 | | 1,412 | | Net credit losses on loans (NCLs) | $ | (887) | | $ | (961) | | $ | (2,609) | | $ | (4,029) | | Replenishment of NCLs | $ | 887 | | $ | 961 | | $ | 2,609 | | $ | 4,029 | | Net reserve builds (releases) for loans | 519 | | (1,010) | | 259 | | (6,262) | | Net specific reserve builds (releases) for loans | (78) | | (139) | | 104 | | (560) | | Total provision for credit losses on loans (PCLL) | $ | 1,328 | | $ | (188) | | $ | 2,972 | | $ | (2,793) | | | | | | | Other, net (see table below) | (84) | | (374) | | (509) | | (419) | | ACLL at end of period | $ | 16,309 | | $ | 17,715 | | $ | 16,309 | | $ | 17,715 | | Allowance for credit losses on unfunded lending commitments (ACLUC) at beginning of period(1) | $ | 2,193 | | $ | 2,073 | | $ | 1,871 | | $ | 2,655 | | | | | | | Provision (release) for credit losses on unfunded lending commitments | (71) | | (13) | | 244 | | (595) | | Other, net | (33) | | 3 | | (26) | | 3 | | ACLUC at end of period(1) | $ | 2,089 | | $ | 2,063 | | $ | 2,089 | | $ | 2,063 | | Total allowance for credit losses on loans, leases and unfunded lending commitments(2) | $ | 18,398 | | $ | 19,778 | | $ | 18,398 | | $ | 19,778 | |
| | | | | | | | | | | | | | | Other, net details | Three Months Ended September 30, | Nine Months Ended September 30, | In millions of dollars | 2022 | 2021 | 2022 | 2021 | | | | | | | | | | | | | | | | Reclasses of consumer ACLL to HFS(3) | $ | — | | $ | (278) | | $ | (350) | | $ | (278) | | FX translation and other | (84) | | (96) | | (159) | | (141) | | Other, net | $ | (84) | | $ | (374) | | $ | (509) | | $ | (419) | |
(1) Represents additional credit loss reserves for unfunded lending commitments and letters of credit recorded in Other liabilities on the Consolidated Balance Sheet. (2) See below for ACL on HTM debt securities and Other assets. (3) See Note 2. Allowance for Credit Losses on Loans and End-of-Period Loans
| | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | | September 30, 2022 | September 30, 2021 | | In millions of dollars | Corporate | Consumer | Total | Corporate | Consumer | Total | | ACLL at beginning of period | $ | 2,969 | | $ | 12,983 | | $ | 15,952 | | $ | 2,672 | | $ | 16,566 | | $ | 19,238 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Charge-offs | (43) | | (1,194) | | (1,237) | | (47) | | (1,342) | | (1,389) | | | Recoveries | 37 | | 313 | | 350 | | 8 | | 420 | | 428 | | | Replenishment of NCLs | 6 | | 881 | | 887 | | 39 | | 922 | | 961 | | | Net reserve builds (releases) | 145 | | 374 | | 519 | | (26) | | (984) | | (1,010) | | | Net specific reserve builds (releases) | (104) | | 26 | | (78) | | (21) | | (118) | | (139) | | | | | | | | | | | Other | (62) | | (22) | | (84) | | (15) | | (359) | | (374) | | | Ending balance | $ | 2,948 | | $ | 13,361 | | $ | 16,309 | | $ | 2,610 | | $ | 15,105 | | $ | 17,715 | | | | Nine Months Ended | | | September 30, 2022 | September 30, 2021 | | In millions of dollars | Corporate | Consumer | Total | Corporate | Consumer | Total | | ACLL at beginning of period | $ | 2,415 | | $ | 14,040 | | $ | 16,455 | | $ | 4,776 | | $ | 20,180 | | $ | 24,956 | | | | | | | | | | | | | | | | | | | | | | | | | | | Charge-offs | (148) | | (3,541) | | (3,689) | | (383) | | (5,058) | | (5,441) | | | Recoveries | 88 | | 992 | | 1,080 | | 82 | | 1,330 | | 1,412 | | | Replenishment of NCLs | 60 | | 2,549 | | 2,609 | | 301 | | 3,728 | | 4,029 | | | Net reserve builds (releases) | 394 | | (135) | | 259 | | (1,970) | | (4,292) | | (6,262) | | | Net specific reserve builds (releases) | 169 | | (65) | | 104 | | (167) | | (393) | | (560) | | | | | | | | | | | Other | (30) | | (479) | | (509) | | (29) | | (390) | | (419) | | | Ending balance | $ | 2,948 | | $ | 13,361 | | $ | 16,309 | | $ | 2,610 | | $ | 15,105 | | $ | 17,715 | | |
| | | | | | | | | | | | | | | | | | | | | | September 30, 2022 | December 31, 2021 | In millions of dollars | Corporate | Consumer | Total | Corporate | Consumer | Total | ACLL | | | | | | | Collectively evaluated | $ | 2,522 | | $ | 12,784 | | $ | 15,306 | | $ | 2,203 | | $ | 13,227 | | $ | 15,430 | | Individually evaluated | 426 | | 575 | | 1,001 | | 212 | | 813 | | 1,025 | | Purchased credit deteriorated | — | | 2 | | 2 | | — | | — | | — | | Total ACLL | $ | 2,948 | | $ | 13,361 | | $ | 16,309 | | $ | 2,415 | | $ | 14,040 | | $ | 16,455 | | Loans, net of unearned income | | | | | | | Collectively evaluated | $ | 283,254 | | $ | 354,414 | | $ | 637,668 | | $ | 283,610 | | $ | 372,655 | | $ | 656,265 | | Individually evaluated | 1,485 | | 2,818 | | 4,303 | | 1,553 | | 3,748 | | 5,301 | | Purchased credit deteriorated | — | | 110 | | 110 | | — | | 119 | | 119 | | Held at fair value | 3,638 | | 241 | | 3,879 | | 6,070 | | 12 | | 6,082 | | Total loans, net of unearned income | $ | 288,377 | | $ | 357,583 | | $ | 645,960 | | $ | 291,233 | | $ | 376,534 | | $ | 667,767 | |
Allowance for Credit Losses on HTM Debt Securities
| | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2022 | In millions of dollars | Mortgage-backed | | State and municipal | Foreign government | | Asset-backed | | Total HTM | Allowance for credit losses on HTM debt securities at beginning of quarter | $ | 2 | | | $ | 94 | | $ | 3 | | | $ | 6 | | | $ | 105 | | Gross credit losses | — | | | — | | — | | | — | | | — | | Gross recoveries | — | | | — | | — | | | — | | | — | | Net credit losses (NCLs) | $ | — | | | $ | — | | $ | — | | | $ | — | | | $ | — | | Replenishment of NCLs | $ | — | | | $ | — | | $ | — | | | $ | — | | | $ | — | | Net reserve builds (releases) | 1 | | | 15 | | — | | | (6) | | | 10 | | Net specific reserve builds (releases) | — | | | — | | — | | | — | | | — | | Total provision for credit losses on HTM debt securities | $ | 1 | | | $ | 15 | | $ | — | | | $ | (6) | | | $ | 10 | | | | | | | | | | | | | | | | | | | | Allowance for credit losses on HTM debt securities at end of quarter | $ | 3 | | | $ | 109 | | $ | 3 | | | $ | — | | | $ | 115 | | | | | | | | | | | | Nine Months Ended September 30, 2022 | In millions of dollars | Mortgage-backed | | State and municipal | Foreign government | | Asset-backed | | Total HTM | Allowance for credit losses on HTM debt securities at beginning of year | $ | 6 | | | $ | 76 | | $ | 3 | | | $ | 2 | | | $ | 87 | | Gross credit losses | — | | | — | | — | | | — | | | — | | Gross recoveries | — | | | — | | — | | | — | | | — | | Net credit losses (NCLs) | $ | — | | | $ | — | | $ | — | | | $ | — | | | $ | — | | Replenishment of NCLs | $ | — | | | $ | — | | $ | — | | | $ | — | | | $ | — | | Net reserve builds (releases) | (3) | | | 33 | | — | | | (2) | | | 28 | | Net specific reserve builds (releases) | — | | | — | | — | | | — | | | — | | Total provision for credit losses on HTM debt securities | $ | (3) | | | $ | 33 | | $ | — | | | $ | (2) | | | $ | 28 | | | | | | | | | | | | | | | | | | | | Allowance for credit losses on HTM debt securities at end of quarter | $ | 3 | | | $ | 109 | | $ | 3 | | | $ | — | | | $ | 115 | |
Allowance for Credit Losses on HTM Debt Securities
| | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2021 | In millions of dollars | Mortgage-backed | | State and municipal | Foreign government | | Asset-backed | | Total HTM | Allowance for credit losses on HTM debt securities at beginning of quarter | $ | 5 | | | $ | 72 | | $ | 5 | | | $ | 1 | | | $ | 83 | | | | | | | | | | | Gross credit losses | — | | | — | | — | | | — | | | — | | Gross recoveries | — | | | — | | — | | | — | | | — | | Net credit losses (NCLs) | $ | — | | | $ | — | | $ | — | | | $ | — | | | $ | — | | Replenishment of NCLs | $ | — | | | $ | — | | $ | — | | | $ | — | | | $ | — | | Net reserve builds (releases) | — | | | (5) | | (1) | | | — | | | (6) | | Net specific reserve builds (releases) | (4) | | | — | | — | | | — | | | (4) | | Total provision for credit losses on HTM debt securities | $ | (4) | | | $ | (5) | | $ | (1) | | | $ | — | | | $ | (10) | | Other, net | $ | — | | | $ | — | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | Allowance for credit losses on HTM debt securities at end of quarter | $ | 1 | | | $ | 67 | | $ | 4 | | | $ | 1 | | | $ | 73 | | | | | | | | | | | | Nine Months Ended September 30, 2021 | In millions of dollars | Mortgage-backed | | State and municipal | Foreign government | | Asset- backed | | Total HTM | Allowance for credit losses on HTM debt securities at beginning of year | $ | 3 | | | $ | 74 | | $ | 6 | | | $ | 3 | | | $ | 86 | | | | | | | | | | | Gross credit losses | — | | | — | | — | | | — | | | — | | Gross recoveries | 3 | | | — | | — | | | — | | | 3 | | Net credit losses (NCLs) | $ | 3 | | | $ | — | | $ | — | | | $ | — | | | $ | 3 | | Replenishment of NCLs | $ | (3) | | | $ | — | | $ | — | | | $ | — | | | $ | (3) | | Net reserve builds | 2 | | | (7) | | (2) | | | (3) | | | (10) | | Net specific reserve builds (releases) | (4) | | | — | | — | | | — | | | (4) | | Total provision for credit losses on HTM debt securities | $ | (5) | | | $ | (7) | | $ | (2) | | | $ | (3) | | | $ | (17) | | Other, net | $ | — | | | $ | — | | $ | — | | | $ | 1 | | | $ | 1 | | | | | | | | | | | Allowance for credit losses on HTM debt securities at end of quarter | $ | 1 | | | $ | 67 | | $ | 4 | | | $ | 1 | | | $ | 73 | |
Allowance for Credit Losses on Other Assets
| | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2022 | In millions of dollars | | Deposits with banks | Securities borrowed and purchased under agreements to resell | Brokerage receivables | All other assets(1) | Total | Allowance for credit losses on other assets at beginning of quarter | | $ | 17 | | $ | 27 | | $ | — | | $ | 30 | | $ | 74 | | | | | | | | | Gross credit losses | | — | | — | | — | | (4) | | (4) | | Gross recoveries | | — | | — | | — | | — | | — | | Net credit losses (NCLs) | | $ | — | | $ | — | | $ | — | | $ | (4) | | $ | (4) | | Replenishment of NCLs | | $ | — | | $ | — | | $ | — | | $ | 4 | | $ | 4 | | Net reserve builds (releases) | | 23 | | 45 | | — | | 1 | | 69 | | Total provision for credit losses | | $ | 23 | | $ | 45 | | $ | — | | $ | 5 | | $ | 73 | | Other, net | | $ | — | | $ | (3) | | $ | — | | $ | 1 | | $ | (2) | | Allowance for credit losses on other assets at end of quarter | | $ | 40 | | $ | 69 | | $ | — | | $ | 32 | | $ | 141 | | | | | | | | | | | Nine Months Ended September 30, 2022 | In millions of dollars | | Deposits with banks | Securities borrowed and purchased under agreements to resell | Brokerage receivables | All other assets(1) | Total | Allowance for credit losses on other assets at beginning of year | | $ | 21 | | $ | 6 | | $ | — | | $ | 26 | | $ | 53 | | | | | | | | | Gross credit losses | | — | | — | | — | | (19) | | (19) | | Gross recoveries | | — | | — | | — | | 2 | | 2 | | Net credit losses (NCLs) | | $ | — | | $ | — | | $ | — | | $ | (17) | | $ | (17) | | Replenishment of NCLs | | $ | — | | $ | — | | $ | — | | $ | 17 | | $ | 17 | | Net reserve builds (releases) | | 19 | | 35 | | — | | 5 | | 59 | | Total provision for credit losses | | $ | 19 | | $ | 35 | | $ | — | | $ | 22 | | $ | 76 | | Other, net(2) | | $ | — | | $ | 28 | | $ | — | | $ | 1 | | $ | 29 | | Allowance for credit losses on other assets at end of quarter | | $ | 40 | | $ | 69 | | $ | — | | $ | 32 | | $ | 141 | |
(1)Primarily accounts receivable. (2)Includes $30 million of ACL transferred from ICG loans ACL during the second quarter of 2022 for securities borrowed and purchased under agreements to resell. Allowance for Credit Losses on Other Assets
| | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2021 | In millions of dollars | | Deposits with banks | Securities borrowed and purchased under agreements to resell | Brokerage receivables | All other assets(1) | Total | Allowance for credit losses on other assets at beginning of quarter | | $ | 24 | | $ | 8 | | $ | — | | $ | 28 | | $ | 60 | | | | | | | | | Gross credit losses | | — | | — | | — | | — | | — | | Gross recoveries | | — | | — | | — | | — | | — | | Net credit losses (NCLs) | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Replenishment of NCLs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Net reserve builds (releases) | | — | | 1 | | — | | (4) | | (3) | | Total provision for credit losses | | $ | — | | $ | 1 | | $ | — | | $ | (4) | | $ | (3) | | Other, net | | $ | — | | $ | — | | $ | — | | $ | 1 | | $ | 1 | | Allowance for credit losses on other assets at end of quarter | | $ | 24 | | $ | 9 | | $ | — | | $ | 25 | | $ | 58 | | | | | | | | | | | Nine Months Ended September 30, 2021 | In millions of dollars | | Deposits with banks | Securities borrowed and purchased under agreements to resell | Brokerage receivables | All other assets(1) | Total | Allowance for credit losses on other assets at beginning of year | | $ | 20 | | $ | 10 | | $ | — | | $ | 25 | | $ | 55 | | | | | | | | | Gross credit losses | | — | | — | | — | | — | | — | | Gross recoveries | | — | | — | | — | | — | | — | | Net credit losses (NCLs) | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Replenishment of NCLs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Net reserve builds (releases) | | 5 | | (1) | | — | | (1) | | 3 | | Total provision for credit losses | | $ | 5 | | $ | (1) | | $ | — | | $ | (1) | | $ | 3 | | Other, net | | $ | (1) | | $ | — | | $ | — | | $ | 1 | | $ | — | | Allowance for credit losses on other assets at end of quarter | | $ | 24 | | $ | 9 | | $ | — | | $ | 25 | | $ | 58 | |
(1) Primarily accounts receivable. For ACL on AFS debt securities, see Note 12.
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