Allowance for credit losses and loans and lending-related commitments by impairment methodology

The table below summarizes information about the allowance for loan losses, loans by impairment methodology, the allowance for lending-related commitments and lending-related commitments by impairment methodology.



	2012														2011
Three months ended March 31, (in millions)	Wholesale			Consumer, excluding credit card				Credit card				Total			Wholesale			Consumer, excluding credit card				Credit card				Total
Allowance for loan losses
Beginning balance at January 1,	$	4,316		$	16,294			$	6,999			$	27,609		$	4,761		$	16,471			$	11,034			$	32,266
Gross charge-offs	92			1,134				1,627				2,853			253			1,460				2,631				4,344
Gross recoveries	(87		)	(138		)		(241		)		(466		)	(88		)	(131		)		(405		)		(624		)
Net charge-offs	5			996				1,386				2,387			165			1,329				2,226				3,720
Provision for loan losses	8			2				636				646			(359		)	1,329				226				1,196
Other	4			(3		)		2				3			(3		)	4				7				8
Ending balance at March 31,	$	4,323		$	15,297			$	6,251			$	25,871		$	4,234		$	16,475			$	9,041			$	29,750

Allowance for loan losses by impairment methodology
Asset-specific^(a)	$	448		$	760			$	2,402		^(d)	$	3,610		$	1,030		$	1,067			$	3,819		^(d)	$	5,916
Formula-based	3,875			8,826				3,849				16,550			3,204			10,467				5,222				18,893
PCI	—			5,711				—				5,711			—			4,941				—				4,941
Total allowance for loan losses	$	4,323		$	15,297			$	6,251			$	25,871		$	4,234		$	16,475			$	9,041			$	29,750

Loans by impairment methodology
Asset-specific	$	2,058		$	10,059			$	6,524			$	18,641		$	4,498		$	7,254			$	9,236			$	20,988
Formula-based	281,573			230,650				117,951				630,174			225,094			242,979				115,555				583,628
PCI	22			64,061				—				64,083			56			70,765				—				70,821
Total retained loans	$	283,653		$	304,770			$	124,475			$	712,898		$	229,648		$	320,998			$	124,791			$	675,437

Impaired collateral-dependent loans
Net charge-offs^(b)	$	24		$	29			$	—			$	53		$	27		$	25			$	—			$	52
Carrying value^(b)	790			849			^(c)	—				1,639			1,221			864			^(c)	—				2,085

Allowance for lending-related commitments
Beginning balance at January 1,	$	666		$	7			$	—			$	673		$	711		$	6			$	—			$	717
Provision for lending-related commitments	81			(1		)		—				80			(27		)	—				—				(27		)
Other	(4		)	1				—				(3		)	(2		)	—				—				(2		)
Ending balance at March 31,	$	743		$	7			$	—			$	750		$	682		$	6			$	—			$	688

Allowance for lending-related commitments by impairment methodology
Asset-specific	$	187		$	—			$	—			$	187		$	184		$	—			$	—			$	184
Formula-based	556			7				—				563			498			6				—				504
Total allowance for lending-related commitments	$	743		$	7			$	—			$	750		$	682		$	6			$	—			$	688

Lending-related commitments by impairment methodology
Asset-specific	$	756		$	—			$	—			$	756		$	895		$	—			$	—			$	895
Formula-based	400,308			63,121				533,318				996,747			354,666			64,560				565,813				985,039
Total lending-related commitments	$	401,064		$	63,121			$	533,318			$	997,503		$	355,561		$	64,560			$	565,813			$	985,934


(a)	Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a TDR.


(b)	Prior periods have been revised to conform with the current presentation.


(c)	Includes collateral-dependent residential mortgage loans that are charged off to the fair value of the underlying collateral less cost to sell. These loans are considered collateral-dependent under regulatory guidance because they involve modifications where an interest-only period is provided or a significant portion of principal is deferred.


(d)	The asset-specific credit card allowance for loan losses is related to loans that have been modified in a TDR; such allowance is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.