XML 43 R23.htm IDEA: XBRL DOCUMENT v3.23.2
ALLOWANCE FOR CREDIT LOSSES
 6 Months Ended
Jun. 30, 2023
Credit Loss [Abstract]  
ALLOWANCE FOR CREDIT LOSSES ALLOWANCE FOR CREDIT LOSSES
Three Months Ended June 30,Six Months Ended June 30,
In millions of dollars2023202220232022
Allowance for credit losses on loans (ACLL) at beginning of period$17,169 $15,393 $16,974 $16,455 
Adjustments to opening balance(1)
Financial instruments—TDRs and vintage disclosures(1)
$— $— $(352)$— 
Adjusted ACLL at beginning of period$17,169 $15,393 $16,622 $16,455 
Gross credit losses on loans$(1,879)$(1,212)$(3,513)$(2,452)
Gross recoveries on loans375 362 707 730 
Net credit losses on loans (NCLs) $(1,504)$(850)$(2,806)$(1,722)
Replenishment of NCLs$1,504 $850 $2,806 $1,722 
Net reserve builds (releases) for loans290 520 687 (260)
Net specific reserve builds (releases) for loans(33)14 5 182 
Total provision for credit losses on loans (PCLL)$1,761 $1,384 $3,498 $1,644 
Other, net (see table below)70 25 182 (425)
ACLL at end of period$17,496 $15,952 $17,496 $15,952 
Allowance for credit losses on unfunded lending commitments (ACLUC) at beginning of period(2)
$1,959 $2,343 $2,151 $1,871 
Provision (release) for credit losses on unfunded lending commitments(96)(159)(290)315 
Other, net
(1)9 1 7 
ACLUC at end of period(2)
$1,862 $2,193 $1,862 $2,193 
Total allowance for credit losses on loans, leases and unfunded lending commitments(3)
$19,358 $18,145 $19,358 $18,145 

Other, net detailsThree Months Ended June 30,Six Months Ended June 30,
In millions of dollars2023202220232022
Reclasses of consumer ACLL to HFS(4)
$— $— $— $(350)
FX translation and other70 25 182 (75)
Other, net$70 $25 $182 $(425)

(1)    See Note 1 in Citi’s First Quarter of 2023 Form 10-Q for a description of the impact of adopting ASU 2022-02 on the ACL.
(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.
(4)    See Note 2.
Allowance for Credit Losses on Loans and End-of-Period Loans

Three Months Ended
June 30, 2023June 30, 2022
In millions of dollarsCorporateConsumerTotalCorporateConsumerTotal
ACLL at beginning of period$2,780 $14,389 $17,169 $3,025 $12,368 $15,393 
Charge-offs(86)(1,793)(1,879)(57)(1,155)(1,212)
Recoveries11 364 375 34 328 362 
Replenishment of NCLs75 1,429 1,504 23 827 850 
Net reserve builds (releases)(119)409 290 (128)648 520 
Net specific reserve builds (releases)(33)— (33)49 (35)14 
Other2 68 70 23 2 25 
Ending balance$2,630 $14,866 $17,496 $2,969 $12,983 $15,952 
Six Months Ended
June 30, 2023June 30, 2022
In millions of dollarsCorporateConsumerTotalCorporateConsumerTotal
ACLL at beginning of period$2,855 $14,119 $16,974 $2,415 $14,040 $16,455 
Adjustments to opening balance:
Financial instruments—TDRs and vintage disclosures(1)
— (352)(352)— — — 
Adjusted ACLL at beginning of period$2,855 $13,767 $16,622 $2,415 $14,040 $16,455 
Charge-offs$(125)$(3,388)$(3,513)$(105)$(2,347)$(2,452)
Recoveries28 679 707 51 679 730 
Replenishment of NCLs97 2,709 2,806 54 1,668 1,722 
Net reserve builds (releases)(209)896 687 249 (509)(260)
Net specific reserve builds (releases)(28)33 5 273 (91)182 
Other12 170 182 32 (457)(425)
Ending balance$2,630 $14,866 $17,496 $2,969 $12,983 $15,952 

June 30, 2023December 31, 2022
In millions of dollarsCorporateConsumerTotalCorporateConsumerTotal
ACLL   
Collectively evaluated(1)
$2,335 $14,827 $17,162 $2,532 $13,521 $16,053 
Individually evaluated 295 39 334 323 596 919 
Purchased credit deteriorated— — — — 2 2 
Total ACLL$2,630 $14,866 $17,496 $2,855 $14,119 $16,974 
Loans, net of unearned income
Collectively evaluated(1)
$279,231 $374,201 $653,432 $282,909 $364,795 $647,704 
Individually evaluated 1,261 39 1,300 1,122 2,921 4,043 
Purchased credit deteriorated— 114 114 — 114 114 
Held at fair value5,529 237 5,766 5,123 237 5,360 
Total loans, net of unearned income$286,021 $374,591 $660,612 $289,154 $368,067 $657,221 

(1)    See Note 1 in Citi’s First Quarter of 2023 Form 10-Q for a description of the effect of adopting ASU 2022-02 on the ACL and for Citi’s updated accounting policy for collectively evaluating the ACL for consumer loans formerly considered TDRs.
2Q23 Changes in the ACL
The total allowance for credit losses on loans, leases and unfunded lending commitments as of June 30, 2023 was $19,358 million, a slight increase from $19,125 million at December 31, 2022. The increase in the ACLL was primarily driven by growth in card balances in Branded cards and Retail services and an increase in transfer risk associated with exposures outside the U.S. driven by safety and soundness considerations under U.S. banking law, partially offset by a decrease in the ACLL of $352 million from the adoption of ASU 2022-02 for the recognition and measurement of TDRs (see Note 1) and an improved macroeconomic outlook.

Consumer ACLL
Citi’s total consumer allowance for credit losses on loans (ACLL) as of June 30, 2023 was $14,866 million, an increase from $14,119 million at December 31, 2022. The increase was primarily driven by growth in U.S. cards balances, partially offset by a decrease to the ACLL of $352 million from the adoption of ASU 2022-02 for the recognition and measurement of TDRs.

Corporate ACLL
Citi’s total corporate ACLL as of June 30, 2023 was $2,630 million, a decrease from $2,855 million at December 31, 2022. The decrease was primarily driven by an improved macroeconomic outlook.

ACLUC
As of June 30, 2023, Citi’s total ACLUC, included in Other liabilities, was $1,862 million, a decrease from $2,151 million at December 31, 2022. The decrease was primarily driven by an improved macroeconomic outlook.
Allowance for Credit Losses on HTM Debt Securities

Three Months Ended June 30, 2023
In millions of dollarsMortgage-backedState and municipalForeign governmentAsset-
backed		Total HTM
Allowance for credit losses on HTM debt securities
at beginning of quarter		$2 $98 $3 $1 $104 
Gross credit losses— — — — — 
Gross recoveries— — — — — 
Net credit losses (NCLs)$— $— $— $— $— 
Replenishment of NCLs$— $— $— $— $— 
Net reserve builds (releases)3 (6)(1)— (4)
Net specific reserve builds (releases)— — — — — 
Total provision for credit losses on HTM debt securities$3 $(6)$(1)$— $(4)
Other, net$— $— $— $(1)$(1)
Allowance for credit losses on HTM debt securities
at end of quarter		$5 $92 $2 $— $99 
Six Months Ended June 30, 2023
In millions of dollarsMortgage-backedState and municipalForeign governmentAsset-
backed		Total HTM
Allowance for credit losses on HTM debt securities
at beginning of year		$1 $113 $3 $3 $120 
Gross credit losses— — — — — 
Gross recoveries— — — — — 
Net credit losses (NCLs)$— $— $— $— $— 
Replenishment of NCLs$— $— $— $— $— 
Net reserve builds (releases)5 (21)(1)(4)(21)
Net specific reserve builds (releases)— — — — — 
Total provision for credit losses on HTM debt securities$5 $(21)$(1)$(4)$(21)
Other, net$(1)$— $— $1 $— 
Allowance for credit losses on HTM debt securities
at end of quarter		$5 $92 $2 $— $99 
Three Months Ended June 30, 2022
In millions of dollarsMortgage-backedState and municipalForeign governmentAsset-
backed		Total HTM
Allowance for credit losses on HTM debt securities
at beginning of quarter		$4 $79 $2 $— $85 
Gross credit losses— — — — — 
Gross recoveries— — — — — 
Net credit losses (NCLs)$— $— $— $— $— 
Replenishment of NCLs$— $— $— $— $— 
Net reserve builds (releases)(2)14 1 7 20 
Net specific reserve builds (releases)— — — — — 
Total provision for credit losses on HTM debt securities$(2)$14 $1 $7 $20 
Allowance for credit losses on HTM debt securities
at end of quarter		$2 $93 $3 $7 $105 
Six Months Ended June 30, 2022
In millions of dollarsMortgage-backedState and municipalForeign governmentAsset-
backed		Total HTM
Allowance for credit losses on HTM debt securities
at beginning of year		$6 $75 $4 $2 $87 
Gross credit losses— — — — — 
Gross recoveries— — — — — 
Net credit losses (NCLs)$— $— $— $— $— 
Replenishment of NCLs$— $— $— $— $— 
Net reserve builds(4)18 (1)5 18 
Net specific reserve builds (releases)— — — — — 
Total provision for credit losses on HTM debt securities$(4)$18 $(1)$5 $18 
Allowance for credit losses on HTM debt securities
at end of quarter		$2 $93 $3 $7 $105 
Allowance for Credit Losses on Other Assets

Three Months Ended June 30, 2023
In millions of dollarsDeposits with banksSecurities borrowed and purchased under agreements
to resell
All other assets(1)
Total
Allowance for credit losses on other assets
at beginning of quarter		$135 $30 $363 $528 
Gross credit losses— — (24)(24)
Gross recoveries— — 5 5 
Net credit losses (NCLs)$— $— $(19)$(19)
Replenishment of NCLs$— $— $19 $19 
Net reserve builds (releases)(114)— 244 130 
Total provision for credit losses$(114)$— $263 $149 
Other, net$— $(4)$5 $1 
Allowance for credit losses on other assets
at end of quarter		$21 $26 $612 $659 
Six Months Ended June 30, 2023
In millions of dollarsDeposits with banksSecurities borrowed and purchased under agreements
to resell
All other assets(1)
Total
Allowance for credit losses on other assets
at beginning of year		$51 $36 $36 $123 
Gross credit losses— — (35)(35)
Gross recoveries— — 5 5 
Net credit losses (NCLs)$— $— $(30)$(30)
Replenishment of NCLs$— $— $30 $30 
Net reserve builds (releases)(29)(3)576 544 
Total provision for credit losses$(29)$(3)$606 $574 
Other, net
$(1)$(7)$— $(8)
Allowance for credit losses on other assets
at end of quarter		$21 $26 $612 $659 

(1)Primarily an increase related to transfer risk associated with exposures outside of the U.S. driven by safety and soundness considerations under U.S. banking law.
Three Months Ended June 30, 2022
In millions of dollarsDeposits with banksSecurities 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		$15 $4 $— $24 $43 
Gross credit losses— — — (8)(8)
Gross recoveries— — — 2 2 
Net credit losses (NCLs)$— $— $— $(6)$(6)
Replenishment of NCLs$— $— $— $6 $6 
Net reserve builds (releases)2 (8)— 7 1 
Total provision for credit losses$2 $(8)$— $13 $7 
Other, net$— $31 $— $(1)$30 
Allowance for credit losses on other assets
at end of quarter		$17 $27 $— $30 $74 
Six Months Ended June 30, 2022
In millions of dollarsDeposits with banksSecurities 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 $53 
Gross credit losses— — — (15)(15)
Gross recoveries— — — 2 2 
Net credit losses (NCLs)$— $— $— $(13)$(13)
Replenishment of NCLs$— $— $— $13 $13 
Net reserve builds (releases)(4)(10)— 4 (10)
Total provision for credit losses$(4)$(10)$— $17 $3 
Other, net$— $31 $— $— $31 
Allowance for credit losses on other assets
at end of quarter		$17 $27 $— $30 $74 

(1)    Primarily accounts receivable.
For ACL on AFS debt securities, see Note 12.