ALLOWANCE FOR CREDIT LOSSES



	Three Months Ended September 30,						Nine Months Ended September 30,
In millions of dollars	2014			2013			2014			2013
Allowance for loan losses at beginning of period	$	17,890		$	21,580		$	19,648		$	25,455
Gross credit losses	(2,586		)	(2,974		)	(8,381		)	(9,675		)
Gross recoveries ⁽¹⁾	489			544			1,656			1,759
Net credit losses (NCLs)	$	(2,097	)	$	(2,430	)	$	(6,725	)	$	(7,916	)
NCLs	$	2,097		$	2,430		$	6,725		$	7,916
Net reserve releases	(492		)	(767		)	(1,573		)	(1,715		)
Net specific reserve builds (releases)	(30		)	(11		)	(205		)	(508		)
Total provision for credit losses	$	1,575		$	1,652		$	4,947		$	5,693
Other, net ⁽²⁾	(453		)	(197		)	(955		)	(2,627		)
Allowance for loan losses at end of period	$	16,915		$	20,605		$	16,915		$	20,605
Allowance for credit losses on unfunded lending commitments at beginning of period⁽³⁾	$	1,176		$	1,133		$	1,229		$	1,119
Provision for unfunded lending commitments	(30		)	103			(88		)	114
Other, net	(6		)	26			(1		)	29
Allowance for credit losses on unfunded lending commitments at end of period⁽³⁾	$	1,140		$	1,262		$	1,140		$	1,262
Total allowance for loans, leases, and unfunded lending commitments	$	18,055		$	21,867		$	18,055		$	21,867


(1)	Recoveries have been reduced by certain collection costs that are incurred only if collection efforts are successful.

(2)

The third quarter of 2014 includes a reduction of approximately $259 million related to transfers to held-for-sale (HFS) of various loan portfolios, including a reduction of $151 million related to a transfer of a real estate loan portfolio to HFS and a reduction of approximately $108 million related to the transfer of various EMEA loan portfolios to HFS. Additionally, the third quarter includes a reduction of approximately $181 million related to foreign currency translation. The second quarter of 2014 includes a reduction of approximately $480 million related to the sale or transfers to HFS of various loan portfolios, including a reduction of approximately $204 million and $177 million related to the transfers to HFS of consumer operations in Greece and Spain and $29 million related to the sale of the Honduras consumer business, and $66 million related to a transfer of a real estate loan portfolio to HFS. These amounts are partially offset by foreign currency translation on the entire allowance balance. The first quarter of 2014 includes reductions of approximately $79 million related to the sale or transfer to HFS of various loan portfolios. The third quarter of 2013 includes a reduction of approximately $214 million related to the sale or transfer to HFS of various loan portfolios. The second quarter of 2013 includes a reduction of approximately $650 million related to the sale or transfer to HFS of various U.S. loan portfolios and a reduction of approximately $360 million related to the transfer of Credicard to discontinued operations held for sale. Additionally, a reduction of approximately $90 million related to a transfer to HFS of a loan portfolio in Greece and a reduction of approximately $220 million related to foreign currency translation. The first quarter of 2013 includes reductions of approximately $855 million related to the sale or transfer to HFS of various U.S. loan portfolios and a reduction of approximately $165 million related to a transfer to HFS of a loan portfolio in Greece.


(3)	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



	Three Months Ended September 30, 2014									Nine Months Ended September 30, 2014
In millions of dollars	Corporate			Consumer			Total			Corporate			Consumer			Total
Allowance for loan losses at beginning of period	$	2,370		$	15,520		$	17,890		$	2,584		$	17,064		$	19,648
Charge-offs	(43		)	(2,543		)	(2,586		)	(264		)	(8,117		)	(8,381		)
Recoveries	61			428			489			126			1,530			1,656
Replenishment of net charge-offs	(18		)	2,115			2,097			138			6,587			6,725
Net reserve releases	(99		)	(393		)	(492		)	(226		)	(1,347		)	(1,573		)
Net specific reserve releases	87			(117		)	(30		)	2			(207		)	(205		)
Other	(18		)	(435		)	(453		)	(20		)	(935		)	(955		)
Ending balance	$	2,340		$	14,575		$	16,915		$	2,340		$	14,575		$	16,915



	Three Months Ended September 30, 2013									Nine Months Ended September 30, 2013
In millions of dollars	Corporate			Consumer			Total			Corporate			Consumer			Total
Allowance for loan losses at beginning of period	$	2,708		$	18,872		$	21,580		$	2,776		$	22,679		$	25,455
Charge-offs	(148		)	(2,826		)	(2,974		)	(305		)	(9,370		)	(9,675		)
Recoveries	52			492			544			119			1,640			1,759
Replenishment of net charge-offs	96			2,334			2,430			186			7,730			7,916
Net reserve releases	18			(785		)	(767		)	(111		)	(1,604		)	(1,715		)
Net specific reserve builds (releases)	(45		)	34			(11		)	27			(535		)	(508		)
Other	12			(209		)	(197		)	1			(2,628		)	(2,627		)
Ending balance	$	2,693		$	17,912		$	20,605		$	2,693		$	17,912		$	20,605



	September 30, 2014						December 31, 2013
In millions of dollars	Corporate		Consumer		Total		Corporate		Consumer		Total
Allowance for loan losses
Determined in accordance with ASC 450-20	$	1,995	$	10,364	$	12,359	$	2,232	$	12,402	$	14,634
Determined in accordance with ASC 310-10-35	267		4,192		4,459		268		4,633		4,901
Determined in accordance with ASC 310-30	78		19		97		84		29		113
Total allowance for loan losses	$	2,340	$	14,575	$	16,915	$	2,584	$	17,064	$	19,648
Loans, net of unearned income
Loans collectively evaluated for impairment in accordance with ASC 450-20	$	271,391	$	354,662	$	626,053	$	265,230	$	368,449	$	633,679
Loans individually evaluated for impairment in accordance with ASC 310-10-35	1,666		21,203		22,869		2,222		23,793		26,015
Loans acquired with deteriorated credit quality in accordance with ASC 310-30	85		408		493		117		632		749
Loans held at fair value	4,366		45		4,411		4,072		957		5,029
Total loans, net of unearned income	$	277,508	$	376,318	$	653,826	$	271,641	$	393,831	$	665,472