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Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2023
Credit Loss [Abstract]  
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 December 31, 2023 and 2022:
For the Quarter Ended
June 30, 2024
December 31, 2024
Unemployment rate (quarterly average):
Forecast at December 31, 20234.3 %4.3 %
Forecast at December 31, 20224.5 4.4 
GDP growth rate (year-over-year):
Forecast at December 31, 20231.2 1.1 
Forecast at December 31, 20221.4 1.9 
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:
At December 31,20232022
 (in millions)
Allowance for credit losses:
Loans$591 $584 
Securities held-to-maturity(1)
— — 
Other financial assets measured at amortized cost(2)
— — 
Securities available-for-sale(1)
— — 
Total allowance for credit losses$591 $584 
Liability for off-balance sheet credit exposures$111 $117 
(1)See Note 6, "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 by Product Line
The following table summarizes the changes in the allowance for credit losses on loans by product or line of business during the years ended December 31, 2023, 2022 and 2021:
 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)
Year Ended December 31, 2023
Allowance for credit losses – beginning of period
$200 $230 $120 $1 $11 $2 $16 $4 $584 
Provision charged (credited) to income(56)111 7 — (19)4 4 — 51 
Charge-offs— (48)— — (4)(1)(8)(1)(62)
Recoveries— 9 — — 3 2 4 — 18 
Net (charge-offs) recoveries— (39)— — (1)1 (4)(1)(44)
Allowance for credit losses – end of period
$144 $302 $127 $1 $(9)$7 $16 $3 $591 
Year Ended December 31, 2022
Allowance for credit losses – beginning of period
$73 $243 $100 $4 $8 $5 $14 $— $447 
Provision charged (credited) to income129 (8)29 (3)— (6)(2)4 143 
Charge-offs(3)(9)(9)— (2)(1)(1)(1)(26)
Recoveries1 4 — — 5 4 5 1 20 
Net (charge-offs) recoveries(2)(5)(9)— 3 3 4 — (6)
Allowance for credit losses – end of period
$200 $230 $120 $1 $11 $2 $16 $4 $584 
 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)
Year Ended December 31, 2021
Allowance for credit losses – beginning of period
$145 $375 $287 $7 $(9)$22 $161 $27 $1,015 
Provision charged (credited) to income(1)
(72)(107)(174)(3)21 (18)(66)(18)(437)
Charge-offs(1)
— (29)(13)— (19)(5)(89)(10)(165)
Recoveries— 4 — — 15 6 8 1 34 
Net (charge-offs) recoveries— (25)(13)— (4)1 (81)(9)$(131)
Allowance for credit losses – end of period
$73 $243 $100 $4 $8 $5 $14 $— $447 
(1)For loans that are transferred to held for sale, the existing allowance for credit losses at the time of transfer is 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 to the provision for credit losses.
During the second quarter of 2021, we made the decision to exit our mass market retail banking business which resulted in the transfer of certain loans to held for sale. As a result of transferring these loans to held for sale, 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 4, "Sale of Certain Branch Assets and Liabilities." During the fourth quarter of 2021, a portfolio of Premier credit cards was transferred back to held for investment which resulted in increases to the allowance for credit losses and provision for credit losses of $14 million.
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 fourth quarter of 2021, we also transferred certain non-performing mortgage loans and government-backed mortgage loans to held for sale. As a result, we recognized $4 million of the existing allowance for credit losses as charge-offs and released $22 million of the existing allowance for expected recoveries on these loans as an increase to the provision for credit losses.
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 years ended December 31, 2023, 2022 and 2021:
Year Ended December 31,202320222021
 (in millions)
Balance at beginning of period$117 $103 $237 
Provision charged (credited) to income(6)14 (134)
Balance at end of period$111 $117 $103 
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 6, "Securities," and Note 7, "Loans."
At December 31,20232022
 (in millions)
Accrued interest receivables:
Loans$259 $227 
Securities held-to-maturity57 20 
Other financial assets measured at amortized cost19 11 
Securities available-for-sale87 82 
Total accrued interest receivables422 340 
Allowance for credit losses — — 
Accrued interest receivables, net$422 $340