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Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2021
Credit Loss [Abstract]  
Weighted Average of Forecasted Key Macroeconomic Variables Used in Estimating Lifetime ECL
The following table presents the forecasted key macroeconomic variables in our Central scenarios used for estimating lifetime ECL at September 30, 2021, June 30, 2021 and December 31, 2020:
For the Quarter Ended
December 31, 2021June 30, 2022December 31, 2022
Unemployment rate (quarterly average):
Forecast at September 30, 20214.7 %4.3 %4.2 %
Forecast at June 30, 20214.8 4.4 4.1 
Forecast at December 31, 20206.2 5.9 5.4 
GDP growth rate (year-over-year):
Forecast at September 30, 20216.8 4.9 2.3 
Forecast at June 30, 20216.3 4.7 2.3 
Forecast at December 31, 20205.3 3.1 1.8 
Summary of Allowance for Credit Losses and Liability for Off-balance Sheet Credit Exposures The following table summarizes our allowance for credit losses and the liability for off-balance sheet credit exposures:
September 30, 2021December 31, 2020
 (in millions)
Allowance for credit losses:
Loans$475 $1,015 
Securities held-to-maturity(1)
1 2 
Other financial assets measured at amortized cost(2)
2 2 
Securities available-for-sale(1)
1 1 
Total allowance for credit losses$479 $1,020 
Liability for off-balance sheet credit exposures$110 $237 
(1)See Note 5, "Securities," for additional information regarding the allowance for credit losses associated with our security portfolios.
(2)Primarily includes accrued interest receivables and customer acceptances.
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 on loans by product or line of business during the three and nine months ended September 30, 2021 and 2020:
 Commercial LoansConsumer Loans 
Real Estate, including ConstructionBusiness
and Corporate Banking		Global
Banking		Other
Comm'l		Residential
Mortgages		Home
Equity
Mortgages		Credit
Cards		Other
Consumer		Total Loans
 (in millions)
Three Months Ended September 30, 2021
Allowance for credit losses – beginning of period
$117 $284 $131 $6 $(6)$15 $— $— $547 
Provision charged (credited) to income(1)
(2)(38)(9)(2)(9)(2)(1)(1)(64)
Charge-offs(1)
— (13)— — — (3)— — (16)
Recoveries— 1 — — 4 1 1 1 8 
Net (charge-offs) recoveries— (12)— — 4 (2)1 1 (8)
Allowance for credit losses – end of period
$115 $234 $122 $4 $(11)$11 $— $— $475 
Three Months Ended September 30, 2020
Allowance for credit losses – beginning of period
$120 $434 $424 $5 $(19)$16 $190 $22 $1,192 
Provision charged (credited) to income43 (36)(103)3 12 (1)(2)9 (75)
Charge-offs(12)(2)(1)— (1)(1)(23)(4)(44)
Recoveries— 5 — — 3 1 2 — 11 
Net (charge-offs) recoveries(12)3 (1)— 2 — (21)(4)(33)
Allowance for credit losses – end of period
$151 $401 $320 $8 $(5)$15 $167 $27 $1,084 
Nine Months Ended September 30, 2021
Allowance for credit losses – beginning of period
$145 $375 $287 $7 $(9)$22 $161 $27 $1,015 
Provision charged (credited) to income(1)
(30)(115)(153)(3)(3)(10)(78)(18)(410)
Charge-offs(1)
— (29)(12)— (10)(5)(88)(11)(155)
Recoveries— 3 — — 11 4 5 2 25 
Net (charge-offs) recoveries— (26)(12)— 1 (1)(83)(9)(130)
Allowance for credit losses – end of period
$115 $234 $122 $4 $(11)$11 $— $— $475 
Nine Months Ended September 30, 2020
Allowance for credit losses – beginning of period
$153 $239 $106 $9 $12 $6 $105 $7 $637 
Cumulative effect adjustment to initially apply new accounting guidance for measuring credit losses(2)
(112)(60)51 (5)(86)7 32 3 (170)
Allowance for credit losses – beginning of period, adjusted
41 179 157 4 (74)13 137 10 467 
Provision charged (credited) to income122 283 183 3 62 1 96 24 774 
Charge-offs(12)(69)(20)— (1)(3)(71)(8)(184)
Recoveries— 8 — 1 8 4 5 1 27 
Net (charge-offs) recoveries(12)(61)(20)1 7 1 (66)(7)(157)
Allowance for credit losses – end of period
$151 $401 $320 $8 $(5)$15 $167 $27 $1,084 
(1)For loans that are transferred to held for sale, the existing allowance for credit losses at the time of transfer are recognized as a charge-off to the extent fair value is less than amortized cost and attributable to credit. Any remaining allowance for credit losses is released as a reduction to the provision for credit losses.
During the third quarter of 2021, we transferred certain commercial real estate loans to held for sale and, as a result, we released $24 million of the existing allowance for credit losses as a reduction to the provision for credit losses.
During the second quarter of 2021, we made the decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale. As a result of transferring these loans to held for sale, during the nine months ended September 30, 2021, we recognized $56 million of the existing allowance for credit losses on consumer loans as charge-offs, primarily related to non-performing credit cards, and released $100 million of the existing allowance for credit losses on consumer loans as reductions to the provision for credit losses, primarily related to credit cards. The existing commercial allowance for credit losses on the retail business banking loan portfolio transferred to held for sale was not material. See Note 3, "Branch Assets and Liabilities Held for Sale."
(2)See Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," in our 2020 Form 10-K for additional discussion.
Summary of Changes in the Liability for Off-balance Sheet Credit Exposures
The following table summarizes the changes in the liability for off-balance sheet credit exposures during the three and nine months ended September 30, 2021 and 2020:
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
 (in millions)
Balance at beginning of period$128 $253 $237 $104 
Cumulative effect adjustment to initially apply new accounting guidance for measuring credit losses(1)
— — — 54 
Balance at beginning of period, adjusted128 253 237 158 
Provision charged (credited) to income(18)(28)(127)67 
Balance at end of period$110 $225 $110 $225 
(1)See Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," in our 2020 Form 10-K for additional discussion.
Summary of Accrued Interest Receivables The following table summarizes accrued interest receivables associated with financial assets carried at amortized cost and securities available-for-sale along with the related allowance for credit losses, which are reported net in other assets on the consolidated balance sheet. These accrued interest receivables are excluded from the amortized cost basis disclosures presented elsewhere in these financial statements, including Note 5, "Securities," and Note 6, "Loans."
September 30, 2021December 31, 2020
 (in millions)
Accrued interest receivables:
Loans$125 $140 
Securities held-to-maturity15 23 
Other financial assets measured at amortized cost2 1 
Securities available-for-sale87 100 
Total accrued interest receivables229 264 
Allowance for credit losses — 2 
Accrued interest receivables, net$229 $262