| ALLOWANCE FOR CREDIT LOSSES |
17. ALLOWANCE FOR CREDIT LOSSES
| In millions of dollars |
|
2012 |
|
|
2011 |
|
|
2010 |
|
| Allowance for loan losses at beginning of year |
|
$ |
30,115 |
|
|
$ |
40,655 |
|
|
$ |
36,033 |
|
| Gross credit losses (1)(2) |
|
|
(17,478 |
) |
|
|
(23,164 |
) |
|
|
(34,491 |
) |
| Gross recoveries |
|
|
2,902 |
|
|
|
3,126 |
|
|
|
3,632 |
|
| Net credit losses (NCLs) |
|
$ |
(14,576 |
) |
|
$ |
(20,038 |
) |
|
$ |
(30,859 |
) |
| NCLs |
|
$ |
14,576 |
|
|
$ |
20,038 |
|
|
$ |
30,859 |
|
| Net reserve builds (releases) (1) |
|
|
(1,882 |
) |
|
|
(8,434 |
) |
|
|
(6,523 |
) |
| Net specific reserve builds (releases) (2) |
|
|
(1,846 |
) |
|
|
169 |
|
|
|
858 |
|
| Total provision for credit losses |
|
$ |
10,848 |
|
|
$ |
11,773 |
|
|
$ |
25,194 |
|
| Other, net (3) |
|
|
(932 |
) |
|
|
(2,275 |
) |
|
|
10,287 |
|
| Allowance for loan losses at end of year |
|
$ |
25,455 |
|
|
$ |
30,115 |
|
|
$ |
40,655 |
|
| Allowance for credit losses on unfunded lending commitments at beginning of year (4) |
|
$ |
1,136 |
|
|
$ |
1,066 |
|
|
$ |
1,157 |
|
| Provision for unfunded lending commitments |
|
|
(16 |
) |
|
|
51 |
|
|
|
(117 |
) |
| Other, net |
|
|
(1 |
) |
|
|
19 |
|
|
|
26 |
|
| Allowance for credit losses on unfunded lending commitments at end of year (4) |
|
$ |
1,119 |
|
|
$ |
1,136 |
|
|
$ |
1,066 |
|
| Total allowance for loans, leases, and unfunded lending commitments |
|
$ |
26,574 |
|
|
$ |
31,251 |
|
|
$ |
41,721 |
|
| (1) |
2012 includes approximately $635 million of incremental charge-offs related to OCC guidance issued in the third quarter of 2012, which required mortgage loans to borrowers that have gone through Chapter 7 of the U.S. Bankruptcy Code to be written down to collateral value. There was a corresponding approximate $600 million release in the third quarter of 2012 allowance for loan losses related to these charge-offs. 2012 also includes a benefit to charge-offs of approximately $40 million related to finalizing the impact of this OCC guidance in the fourth quarter of 2012. |
| (2) |
2012 includes approximately $370 million of incremental charge-offs related to previously deferred principal balances on modified loans in the first quarter of 2012. These charge-offs were related to anticipated forgiveness of principal in connection with the national mortgage settlement. There was a corresponding approximate $350 million reserve release in the first quarter of 2012 related to these charge-offs. |
| (3) |
2012 includes reductions of approximately $875 million related to the sale or transfer to held-for-sale of various U.S. loan portfolios. 2011 includes reductions of approximately $1.6 billion related to the sale or transfer to held-for-sale of various U.S. loan portfolios, approximately $240 million related to the sale of the Egg Banking PLC credit card business, approximately $72 million related to the transfer of the Citi Belgium business to held-for-sale and approximately $290 million related to FX translation. 2010 primarily includes an addition of $13.4 billion related to the impact of consolidating entities in connection with Citi’s adoption of SFAS 166/167 (see Note 1 to the Consolidated Financial Statements), reductions of approximately $2.7 billion related to the sale or transfer to held-for-sale of various U.S. loan portfolios and approximately $290 million related to the transfer of a U.K. first mortgage portfolio to held-for-sale. |
| (4) |
Represents additional credit loss reserves for unfunded lending commitments and letters of credit recorded in Other liabilities on the Consolidated Balance Sheet. |
Allowance for Credit Losses and Investment in Loans at December 31, 2012
| In millions of dollars |
|
Corporate |
|
|
Consumer |
|
|
Total |
|
| Allowance for loan losses at beginning of year |
|
$ |
2,879 |
|
|
$ |
27,236 |
|
|
$ |
30,115 |
|
| Charge-offs |
|
|
(640 |
) |
|
|
(16,838 |
) |
|
|
(17,478 |
) |
| Recoveries |
|
|
417 |
|
|
|
2,485 |
|
|
|
2,902 |
|
| Replenishment of net charge-offs |
|
|
223 |
|
|
|
14,353 |
|
|
|
14,576 |
|
| Net reserve builds (releases) |
|
|
2 |
|
|
|
(1,884 |
) |
|
|
(1,882 |
) |
| Net specific reserve builds (releases) |
|
|
(138 |
) |
|
|
(1,708 |
) |
|
|
(1,846 |
) |
| Other |
|
|
33 |
|
|
|
(965 |
) |
|
|
(932 |
) |
| Ending balance |
|
$ |
2,776 |
|
|
$ |
22,679 |
|
|
$ |
25,455 |
|
| Allowance for loan losses |
|
|
|
|
|
|
|
|
|
|
|
|
| Determined in accordance with ASC 450-20 |
|
$ |
2,429 |
|
|
$ |
15,703 |
|
|
$ |
18,132 |
|
| Determined in accordance with ASC 310-10-35 |
|
|
284 |
|
|
|
6,941 |
|
|
|
7,225 |
|
| Determined in accordance with ASC 310-30 |
|
|
63 |
|
|
|
35 |
|
|
|
98 |
|
| Total allowance for loan losses |
|
$ |
2,776 |
|
|
$ |
22,679 |
|
|
$ |
25,455 |
|
| Loans, net of unearned income |
|
|
|
|
|
|
|
|
|
|
|
|
| Loans collectively evaluated for impairment in accordance with ASC 450-20 |
|
$ |
239,849 |
|
|
$ |
377,374 |
|
|
$ |
617,223 |
|
| Loans individually evaluated for impairment in accordance with ASC 310-10-35 |
|
|
2,776 |
|
|
|
29,640 |
|
|
|
32,416 |
|
| Loans acquired with deteriorated credit quality in accordance with ASC 310-30 |
|
|
112 |
|
|
|
426 |
|
|
|
538 |
|
| Loans held at fair value |
|
|
4,056 |
|
|
|
1,231 |
|
|
|
5,287 |
|
| Total loans, net of unearned income |
|
$ |
246,793 |
|
|
$ |
408,671 |
|
|
$ |
655,464 |
|
Allowance for Credit Losses and Investment in Loans at December 31, 2011
| In millions of dollars |
|
Corporate |
|
|
Consumer |
|
|
Total |
|
| Allowance for loan losses at beginning of year |
|
$ |
5,249 |
|
|
$ |
35,406 |
|
|
$ |
40,655 |
|
| Charge-offs |
|
|
(2,000 |
) |
|
|
(21,164 |
) |
|
|
(23,164 |
) |
| Recoveries |
|
|
386 |
|
|
|
2,740 |
|
|
|
3,126 |
|
| Replenishment of net charge-offs |
|
|
1,614 |
|
|
|
18,424 |
|
|
|
20,038 |
|
| Net reserve releases |
|
|
(1,083 |
) |
|
|
(7,351 |
) |
|
|
(8,434 |
) |
| Net specific reserve builds (releases) |
|
|
(1,270 |
) |
|
|
1,439 |
|
|
|
169 |
|
| Other |
|
|
(17 |
) |
|
|
(2,258 |
) |
|
|
(2,275 |
) |
| Ending balance |
|
$ |
2,879 |
|
|
$ |
27,236 |
|
|
$ |
30,115 |
|
| Allowance for loan losses |
|
|
|
|
|
|
|
|
|
|
|
|
| Determined in accordance with ASC 450-20 |
|
$ |
2,408 |
|
|
$ |
18,334 |
|
|
$ |
20,742 |
|
| Determined in accordance with ASC 310-10-35 |
|
|
420 |
|
|
|
8,885 |
|
|
|
9,305 |
|
| Determined in accordance with ASC 310-30 |
|
|
51 |
|
|
|
17 |
|
|
|
68 |
|
| Total allowance for loan losses |
|
$ |
2,879 |
|
|
$ |
27,236 |
|
|
$ |
30,115 |
|
| Loans, net of unearned income |
|
|
|
|
|
|
|
|
|
|
|
|
| Loans collectively evaluated for impairment in accordance with ASC 450-20 |
|
$ |
215,778 |
|
|
$ |
390,831 |
|
|
$ |
606,609 |
|
| Loans individually evaluated for impairment in accordance with ASC 310-10-35 |
|
|
3,994 |
|
|
|
30,863 |
|
|
|
34,857 |
|
| Loans acquired with deteriorated credit quality in accordance with ASC 310-30 |
|
|
191 |
|
|
|
320 |
|
|
|
511 |
|
| Loans held at fair value |
|
|
3,939 |
|
|
|
1,326 |
|
|
|
5,265 |
|
| Total loans, net of unearned income |
|
$ |
223,902 |
|
|
$ |
423,340 |
|
|
$ |
647,242 |
|
|