XML 203 R36.htm IDEA: XBRL DOCUMENT v2.4.0.8
Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2013
Allowance For Credit Losses [Abstract]  
Analysis of the Allowance for Credit Losses
An analysis of the allowance for credit losses is presented in the following table.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2013
 
2012
 
2013
 
2012
 
(in millions)
Balance at beginning of period
$
568

 
$
603

 
$
647

 
$
743

Provision for credit losses
67

 
89

 
88

 
89

Charge-offs
(48
)
 
(91
)
 
(158
)
 
(253
)
Recoveries
18

 
18

 
28

 
40

Balance at end of period
$
605

 
$
619

 
$
605

 
$
619
Summary of Changes in the Allowance for Credit Losses and the Related Loan Balance by Product
The following table summarizes the changes in the allowance for credit losses by product and the related loan balance by product during the three and six months ended June 30, 2013 and 2012:
 
Commercial
 
Consumer
 
 
  
Construction
and Other
Real Estate
 
Business
and Corporate Banking
 
Global
Banking
 
Other
Comm’l
 
Residential
Mortgage,
Excl Home
Equity
Mortgages
 
Home
Equity
Mortgages
 
Credit
Card
 
Other
Consumer
 
Total
 
(in millions)
Three Months Ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
116

 
$
96

 
$
40

 
$
17

 
$
192

 
$
50

 
$
42

 
$
15

 
$
568

Provision charged to income
(14
)
 
15

 
29

 
(4
)
 
14

 
13

 
13

 
1

 
67

Charge offs
(1
)
 
(9
)
 
—

 
—

 
(13
)
 
(11
)
 
(11
)
 
(3
)
 
(48
)
Recoveries
9

 
1

 
—

 
4

 
3

 
—

 
1

 
—

 
18

Net (charge offs) recoveries
8

 
(8
)
 
—

 
4

 
(10
)
 
(11
)
 
(10
)
 
(3
)
 
(30
)
Allowance for credit losses – end of period
$
110

 
$
103

 
$
69

 
$
17

 
$
196

 
$
52

 
$
45

 
$
13

 
$
605

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
205

 
$
76

 
$
25

 
$
20

 
$
182

 
$
43

 
$
35

 
$
17

 
$
603

Provision charged to income
(5
)
 
15

 
19

 
(7
)
 
24

 
34

 
9

 
—

 
89

Charge offs
(2
)
 
(13
)
 
—

 
—

 
(23
)
 
(30
)
 
(16
)
 
(7
)
 
(91
)
Recoveries
—

 
2

 
—

 
5

 
5

 
—

 
3

 
3

 
18

Net (charge offs) recoveries
(2
)
 
(11
)
 
—

 
5

 
(18
)
 
(30
)
 
(13
)
 
(4
)
 
(73
)
Allowance for credit losses – end of period
$
198

 
$
80

 
$
44

 
$
18

 
$
188

 
$
47

 
$
31

 
$
13

 
$
619

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
162

 
$
97

 
$
41

 
$
17

 
$
210

 
$
45

 
$
55

 
$
20

 
$
647

Provision charged to income
(5
)
 
17

 
28

 
(4
)
 
11

 
30

 
11

 
—

 
88

Charge offs
(59
)
 
(15
)
 
—

 
—

 
(29
)
 
(23
)
 
(23
)
 
(9
)
 
(158
)
Recoveries
12

 
4

 
—

 
4

 
4

 
—

 
2

 
2

 
28

Net (charge offs) recoveries
(47
)
 
(11
)
 
—

 
4

 
(25
)
 
(23
)
 
(21
)
 
(7
)
 
(130
)
Allowance for credit losses – end of period
$
110

 
$
103

 
$
69

 
$
17

 
$
196

 
$
52

 
$
45

 
$
13

 
$
605

Ending balance: collectively evaluated for impairment
$
84

 
$
91

 
$
69

 
$
17

 
$
122

 
$
49

 
$
41

 
$
13

 
$
486

Ending balance: individually evaluated for impairment
26

 
12

 
—

 
—

 
74

 
3

 
4

 
—

 
119

Total allowance for credit losses
$
110

 
$
103

 
$
69

 
$
17

 
$
196

 
$
52

 
$
45

 
$
13

 
$
605

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
$
8,064

 
$
12,323

 
$
23,321

 
$
2,941

 
$
14,057

 
$
2,151

 
$
847

 
$
574

 
$
64,278

Individually evaluated for impairment(1)
465

 
68

 
18

 
64

 
212

 
21

 
11

 
—

 
859

Loans carried at lower of amortized cost or fair value less cost to sell
—

 
—

 
—

 
—

 
1,568

 
—

 
—

 
—

 
1,568

Total loans
$
8,529

 
$
12,391

 
$
23,339

 
$
3,005

 
$
15,837

 
$
2,172

 
$
858

 
$
574

 
$
66,705

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
212

 
$
78

 
$
131

 
$
21

 
$
192

 
$
52

 
$
39

 
$
18

 
$
743

Provision charged to income
(25
)
 
21

 
(3
)
 
(9
)
 
39

 
42

 
20

 
4

 
89

Charge offs
(3
)
 
(23
)
 
(84
)
 
—

 
(49
)
 
(47
)
 
(33
)
 
(14
)
 
(253
)
Recoveries
14

 
4

 
—

 
6

 
6

 
—

 
5

 
5

 
40

Net (charge offs) recoveries
11

 
(19
)
 
(84
)
 
6

 
(43
)
 
(47
)
 
(28
)
 
(9
)
 
(213
)
Allowance for credit losses – end of period
$
198

 
$
80

 
$
44

 
$
18

 
$
188

 
$
47

 
$
31

 
$
13

 
$
619

Ending balance: collectively evaluated for impairment
$
87

 
$
73

 
$
31

 
$
17

 
$
95

 
$
43

 
$
25

 
$
13

 
$
384

Ending balance: individually evaluated for impairment
111

 
7

 
13

 
1

 
93

 
4

 
6

 
—

 
235

Total allowance for credit losses
$
198

 
$
80

 
$
44

 
$
18

 
$
188

 
$
47

 
$
31

 
$
13

 
$
619

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
$
7,386

 
$
11,141

 
$
14,928

 
$
3,055

 
$
13,243

 
$
2,441

 
$
765

 
$
651

 
$
53,610

Individually evaluated for impairment(1)
591

 
115

 
114

 
87

 
660

 
14

 
18

 
—

 
1,599

Loans carried at lower of amortized cost or fair value less cost to sell
—

 
—

 
—

 
—

 
855

 
—

 
—

 
—

 
855

Total loans
$
7,977

 
$
11,256

 
$
15,042

 
$
3,142

 
$
14,758

 
$
2,455

 
$
783

 
$
651

 
$
56,064

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
For consumer loans, these amounts represent TDR Loans for which we evaluate reserves using a discounted cash flow methodology. Each loan is individually identified as a TDR Loan and then grouped together with other TDR Loans with similar characteristics. The discounted cash flow analysis is then applied to these groups of TDR Loans. Loans individually evaluated for impairment exclude TDR loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell which totaled $657 million and $510 million at June 30, 2013 and 2012, respectively.