ALLOWANCE FOR CREDIT LOSSES |
ALLOWANCE FOR CREDIT LOSSES | | | | | | | | | | | | In millions of dollars | 2022 | 2021 | 2020 | Allowance for credit losses on loans (ACLL) at beginning of year | $ | 16,455 | | $ | 24,956 | | $ | 12,783 | | Adjustments to opening balance(1): | | | | Financial instruments—credit losses (CECL) adoption | — | | — | | 4,201 | | Variable post-charge-off third-party collection costs | — | | — | | (443) | | Adjusted ACLL at beginning of year | $ | 16,455 | | $ | 24,956 | | $ | 16,541 | | Gross credit losses on loans | $ | (5,156) | | $ | (6,720) | | $ | (9,263) | | Gross recoveries on loans | 1,367 | | 1,825 | | 1,652 | | Net credit losses on loans (NCLs) | $ | (3,789) | | $ | (4,895) | | $ | (7,611) | | Replenishment of NCLs | $ | 3,789 | | $ | 4,895 | | $ | 7,611 | | Net reserve builds (releases) for loans | 937 | | (7,283) | | 7,635 | | Net specific reserve builds (releases) for loans | 19 | | (715) | | 676 | | Total provision for credit losses on loans (PCLL) | $ | 4,745 | | $ | (3,103) | | $ | 15,922 | | Initial allowance for credit losses on newly purchased credit-deteriorated assets during the period | — | | — | | 4 | | Other, net (see table below) | (437) | | (503) | | 100 | | ACLL at end of year | $ | 16,974 | | $ | 16,455 | | $ | 24,956 | | Allowance for credit losses on unfunded lending commitments (ACLUC) at beginning of year(2) | $ | 1,871 | | $ | 2,655 | | $ | 1,456 | | Adjustment to opening balance for CECL adoption(1) | — | | — | | (194) | | Provision (release) for credit losses on unfunded lending commitments | 291 | | (788) | | 1,446 | | Other, net(3) | (11) | | 4 | | (53) | | ACLUC at end of year(2) | $ | 2,151 | | $ | 1,871 | | $ | 2,655 | | Total allowance for credit losses on loans, leases and unfunded lending commitments | $ | 19,125 | | $ | 18,326 | | $ | 27,611 | |
| | | | | | | | | | | | Other, net details | | | | In millions of dollars | 2022 | 2021 | 2020 | Sales or transfers of various consumer loan portfolios to HFS(4) | | | | Reclass of Thailand, India, Malaysia, Taiwan, Indonesia, Bahrain and Vietnam consumer ACLL to HFS | $ | (350) | | $ | — | | $ | — | | Reclass of Australia consumer ACLL to HFS | — | | (280) | | — | | Reclass of the Philippines consumer ACLL to HFS | — | | (90) | | — | | Transfer of real estate loan portfolios | — | | — | | (4) | | | | | | Reclasses of consumer ACLL to HFS(4) | $ | (350) | | $ | (370) | | $ | (4) | | FX translation and other | (87) | | (133) | | 104 | | Other, net | $ | (437) | | $ | (503) | | $ | 100 | |
(1)See “Accounting Changes” in Note 1. (2)Represents additional credit loss reserves for unfunded lending commitments and letters of credit recorded in Other liabilities on the Consolidated Balance Sheet. (3)See below for ACL on HTM debt securities and Other assets. 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. (4)See Note 2. Allowance for Credit Losses on Loans and End-of-Period Loans at December 31, 2022
| | | | | | | | | | | | | | | In millions of dollars | Corporate | Consumer | Total | | | | ACLL at beginning of year | $ | 2,415 | | $ | 14,040 | | $ | 16,455 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gross credit losses on loans | (278) | | (4,878) | | (5,156) | | | | | Gross recoveries on loans | 100 | | 1,267 | | 1,367 | | | | | Replenishment of NCLs | 178 | | 3,611 | | 3,789 | | | | | Net reserve builds (releases) | 374 | | 563 | | 937 | | | | | Net specific reserve builds (releases) | 65 | | (46) | | 19 | | | | | Initial allowance for credit losses on newly purchased credit-deteriorated assets during the year | — | | — | | — | | | | | Other | 1 | | (438) | | (437) | | | | | Ending balance | $ | 2,855 | | $ | 14,119 | | $ | 16,974 | | | | | ACLL | | | | | | | Collectively evaluated | $ | 2,532 | | $ | 13,521 | | $ | 16,053 | | | | | Individually evaluated | 323 | | 596 | | 919 | | | | | Purchased credit deteriorated | — | | 2 | | 2 | | | | | Total ACLL | $ | 2,855 | | $ | 14,119 | | $ | 16,974 | | | | | Loans, net of unearned income | | | | | | | Collectively evaluated | $ | 282,909 | | $ | 364,795 | | $ | 647,704 | | | | | Individually evaluated | 1,122 | | 2,921 | | 4,043 | | | | | Purchased credit deteriorated | — | | 114 | | 114 | | | | | Held at fair value | 5,123 | | 237 | | 5,360 | | | | | Total loans, net of unearned income | $ | 289,154 | | $ | 368,067 | | $ | 657,221 | | | | |
2022 Changes in the ACL The total allowance for credit losses on loans, leases and unfunded lending commitments as of December 31, 2022 was $19,125 million, an increase from $18,326 million at December 31, 2021. The increase in the allowance for credit losses on loans, leases and unfunded lending commitments was primarily driven by U.S. Cards loan growth and a deterioration in macroeconomic assumptions.
Consumer ACLL Citi’s total consumer allowance for credit losses on loans (ACLL) as of December 31, 2022 was $14,119 million, an increase from $14,040 million at December 31, 2021. The increase in the ACLL balance was primarily driven by U.S. Cards loan growth and a deterioration in macroeconomic assumptions, partially offset by the reduction in reserves related to COVID-19 uncertainty.
Corporate ACLL Citi’s total corporate ACLL as of December 31, 2022 was $2,855 million, an increase from $2,415 million at December 31, 2021. The increase in the ACLL balance was primarily driven by a deterioration in macroeconomic assumptions, partially offset by the release of a COVID-19–related uncertainty reserve.
ACLUC As of December 31, 2022, Citi’s total allowance for credit losses on unfunded lending commitments (ACLUC), included in Other liabilities, was $2,151 million, an increase from $1,871 million at December 31, 2021. The increase in the ACLUC balance was primarily driven by a deterioration in macroeconomic assumptions. Allowance for Credit Losses on Loans and End-of-Period Loans at December 31, 2021
| | | | | | | | | | | | In millions of dollars | Corporate | Consumer | Total | ACLL at beginning of year | $ | 4,776 | | $ | 20,180 | | $ | 24,956 | | | | | | | | | | | | | | | | | | Gross credit losses on loans | (500) | | (6,220) | | (6,720) | | Gross recoveries on loans | 114 | | 1,711 | | 1,825 | | Replenishment of NCLs | 386 | | 4,509 | | 4,895 | | Net reserve builds (releases) | (2,075) | | (5,208) | | (7,283) | | Net specific reserve builds (releases) | (255) | | (460) | | (715) | | Initial allowance for credit losses on newly purchased credit-deteriorated assets during the year | — | | — | | — | | Other | (31) | | (472) | | (503) | | Ending balance | $ | 2,415 | | $ | 14,040 | | $ | 16,455 | | ACLL | | | | Collectively evaluated | $ | 2,203 | | $ | 13,227 | | $ | 15,430 | | Individually evaluated | 212 | | 813 | | 1,025 | | Purchased credit deteriorated | — | | — | | — | | Total ACLL | $ | 2,415 | | $ | 14,040 | | $ | 16,455 | | Loans, net of unearned income | | | | Collectively evaluated | $ | 283,610 | | $ | 372,655 | | $ | 656,265 | | Individually evaluated | 1,553 | | 3,748 | | 5,301 | | Purchased credit deteriorated | — | | 119 | | 119 | | Held at fair value | 6,070 | | 12 | | 6,082 | | Total loans, net of unearned income | $ | 291,233 | | $ | 376,534 | | $ | 667,767 | |
Allowance for Credit Losses on Loans at December 31, 2020
| | | | | | | | | | | | | | | In millions of dollars | Corporate | Consumer | Total | | | | ACLL at beginning of year | $ | 2,727 | | $ | 10,056 | | $ | 12,783 | | | | | Adjustments to opening balance: | | | | | | | Financial instruments—credit losses (CECL)(1) | (816) | | 5,017 | | 4,201 | | | | | Variable post-charge-off third-party collection costs(1) | — | | (443) | | (443) | | | | | Adjusted ACLL at beginning of year | 1,911 | | 14,630 | | 16,541 | | | | | Gross credit losses on loans | (976) | | (8,287) | | (9,263) | | | | | Gross recoveries on loans | 76 | | 1,576 | | 1,652 | | | | | Replenishment of NCLs | 900 | | 6,711 | | 7,611 | | | | | Net reserve builds (releases) | 2,551 | | 5,084 | | 7,635 | | | | | Net specific reserve builds (releases) | 249 | | 427 | | 676 | | | | | Initial allowance for credit losses on newly purchased credit-deteriorated assets during the year | — | | 4 | | 4 | | | | | Other | 65 | | 35 | | 100 | | | | | Ending balance | $ | 4,776 | | $ | 20,180 | | $ | 24,956 | | | | |
(1)See “Accounting Changes” in Note 1 for additional details. Allowance for Credit Losses on HTM Debt Securities
| | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, 2022 | In millions of dollars | Mortgage-backed | | State and municipal | Foreign government | | Asset-backed | All other debt securities | Total HTM | Allowance for credit losses on HTM debt securities at beginning of year | $ | 6 | | | $ | 75 | | $ | 4 | | | $ | 2 | | $ | — | | $ | 87 | | | | | | | | | | | Gross credit losses | — | | | — | | — | | | — | | — | | — | | Gross recoveries | — | | | — | | — | | | — | | — | | — | | Net credit losses (NCLs) | $ | — | | | $ | — | | $ | — | | | $ | — | | $ | — | | $ | — | | Replenishment of NCLs | $ | — | | | $ | — | | $ | — | | | $ | — | | $ | — | | $ | — | | Net reserve builds (releases) | (5) | | | 37 | | — | | | 1 | | — | | 33 | | Net specific reserve builds (releases) | — | | | — | | — | | | — | | — | | — | | Total provision for credit losses on HTM debt securities | $ | (5) | | | $ | 37 | | $ | — | | | $ | 1 | | $ | — | | $ | 33 | | Other, net | $ | — | | | $ | 1 | | $ | (1) | | | $ | — | | $ | — | | $ | — | | | | | | | | | | | Allowance for credit losses on HTM debt securities at end of year | $ | 1 | | | $ | 113 | | $ | 3 | | | $ | 3 | | $ | — | | $ | 120 | |
| | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, 2021 | In millions of dollars | Mortgage-backed | | State and municipal | Foreign government | | Asset- backed | All other debt securities | 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 (releases) | 7 | | | 1 | | (2) | | | (2) | | — | | 4 | | Net specific reserve builds (releases) | (4) | | | — | | — | | | — | | — | | (4) | | Total provision for credit losses on HTM debt securities | $ | — | | | $ | 1 | | $ | (2) | | | $ | (2) | | $ | — | | $ | (3) | | Other, net | $ | — | | | $ | — | | $ | — | | | $ | 1 | | $ | — | | $ | 1 | | | | | | | | | | | Allowance for credit losses on HTM debt securities at end of year | $ | 6 | | | $ | 75 | | $ | 4 | | | $ | 2 | | $ | — | | $ | 87 | |
| | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, 2020 | In millions of dollars | Mortgage-backed | | State and municipal | Foreign government | | Asset- backed | All other debt securities | Total HTM | Allowance for credit losses on HTM debt securities at beginning of year | $ | — | | | $ | — | | $ | — | | | $ | — | | $ | — | | $ | — | | Adjustment to opening balance for CECL adoption | — | | | 61 | | 4 | | | 5 | | — | | 70 | | Gross credit losses | — | | | — | | — | | | — | | — | | — | | Gross recoveries | — | | | — | | — | | | — | | — | | — | | Net credit losses (NCLs) | $ | — | | | $ | — | | $ | — | | | $ | — | | $ | — | | $ | — | | Replenishment of NCLs | $ | — | | | $ | — | | $ | — | | | $ | — | | $ | — | | $ | — | | Net reserve builds (releases) | (2) | | | 10 | | (2) | | | 1 | | — | | 7 | | Net specific reserve builds (releases) | — | | | — | | — | | | — | | — | | — | | Total provision for credit losses on HTM debt securities | $ | (2) | | | $ | 10 | | $ | (2) | | | $ | 1 | | $ | — | | $ | 7 | | Other, net | $ | 5 | | | $ | 3 | | $ | 4 | | | $ | (3) | | $ | — | | $ | 9 | | | | | | | | | | | Allowance for credit losses on HTM debt securities at end of year | $ | 3 | | | $ | 74 | | $ | 6 | | | $ | 3 | | $ | — | | $ | 86 | |
Allowance for Credit Losses on Other Assets
| | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, 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 | | — | | — | | — | | (24) | | (24) | | | | Gross recoveries | | — | | — | | — | | 3 | | 3 | | | | Net credit losses (NCLs) | | $ | — | | $ | — | | $ | — | | $ | (21) | | $ | (21) | | | | Replenishment of NCLs | | $ | — | | $ | — | | $ | — | | $ | 21 | | $ | 21 | | | | Net reserve builds (releases) | | 30 | | 14 | | — | | 11 | | 55 | | | | Total provision for credit losses | | $ | 30 | | $ | 14 | | $ | — | | $ | 32 | | $ | 76 | | | | Other, net(2) | | $ | — | | $ | 16 | | $ | — | | $ | (1) | | $ | 15 | | | | Allowance for credit losses on other assets at end of year | | $ | 51 | | $ | 36 | | $ | — | | $ | 36 | | $ | 123 | | | |
(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.
| | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, 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 | | — | | — | | — | | (2) | | (2) | | | | Gross recoveries | | — | | — | | — | | — | | — | | | | Net credit losses (NCLs) | | $ | — | | $ | — | | $ | — | | $ | (2) | | $ | (2) | | | | Replenishment of NCLs | | $ | — | | $ | — | | $ | — | | $ | 2 | | $ | 2 | | | | Net reserve builds (releases) | | 2 | | (4) | | — | | — | | (2) | | | | Total provision for credit losses | | $ | 2 | | $ | (4) | | $ | — | | $ | 2 | | $ | — | | | | Other, net | | $ | (1) | | $ | — | | $ | — | | $ | 1 | | $ | — | | | | Allowance for credit losses on other assets at end of year | | $ | 21 | | $ | 6 | | $ | — | | $ | 26 | | $ | 53 | | | |
(1)Primarily accounts receivable.
| | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, 2020 | | | In millions of dollars | Cash and due from banks | 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 | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | Adjustment to opening balance for CECL adoption | 6 | | 14 | | 2 | | 1 | | 3 | | 26 | | | | Gross credit losses | — | | — | | — | | — | | — | | — | | | | Gross recoveries | — | | — | | — | | — | | — | | — | | | | Net credit losses (NCLs) | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | Replenishment of NCLs | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | Net reserve builds (releases) | (6) | | 5 | | 8 | | (1) | | 1 | | 7 | | | | Total provision for credit losses | $ | (6) | | $ | 5 | | $ | 8 | | $ | (1) | | $ | 1 | | $ | 7 | | | | Other, net | $ | — | | $ | 1 | | $ | — | | $ | — | | $ | 21 | | $ | 22 | | | | Allowance for credit losses on other assets at end of year | $ | — | | $ | 20 | | $ | 10 | | $ | — | | $ | 25 | | $ | 55 | | | |
(1)Primarily accounts receivable. For ACL on AFS debt securities, see Note 13.
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