ALLOWANCE FOR CREDIT LOSSES

3 Months Ended

Mar. 31, 2020

Loans and Leases Receivable Disclosure [Abstract]

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES

 

	Three Months Ended March 31,
In millions of dollars	2020			2019
Allowance for credit losses on loans (ACLL) at beginning of period	$	12,783		$	12,315
Adjustment to opening balance for CECL adoption(1)	4,201			—
Adjusted ACLL at beginning of period	$	16,984		$	12,315
Gross credit losses on loans	$	(2,479	)	$	(2,345	)
Gross recoveries on loans(2)	371			397
Net credit losses on loans (NCLs)	$	(2,108	)	$	(1,948	)
NCLs	$	2,108		$	1,948
Net reserve builds (releases) for loans	4,112			67
Net specific reserve builds (releases) for loans	224			(71		)
Total provision for credit losses on loans (PCLL)	$	6,444		$	1,944
Initial allowance for credit losses on newly purchased credit deteriorated assets during the period	4			—
Other, net (see table below)	(483		)	18
ACLL at end of period	$	20,841		$	12,329
Allowance for credit losses on unfunded lending commitments (ACLUC) at beginning of period(3)	$	1,456		$	1,367
Adjustment to opening balance for CECL adoption(1)	(194		)	—
Provision (release) for credit losses on unfunded lending commitments	557			24
Other, net	(6		)	—
ACLUC at end of period(3)	$	1,813		$	1,391
Total allowance for credit losses on loans, leases and unfunded lending commitments	$	22,654		$	13,720

Other, net details	Three Months Ended March 31,
Sales or transfers of various consumer loan portfolios to HFS	$	(3	)	$	—
FX translation(4)	(483		)	26
Other	3			(8		)
Other, net	$	(483	)	$	18

(1) See Note 1 to the Consolidated Financial Statements for further discussion on the impact of Citi’s adoption of CECL.

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

(3) Represents additional credit loss reserves for unfunded lending commitments and letters of credit recorded in Other liabilities on the Consolidated Balance Sheet.

(4) Primarily related to consumer. The corporate allowance is predominantly sourced in U.S. dollars.

Allowance for Credit Losses and End-of-Period Loans

	Three Months Ended
	March 31, 2020									March 31, 2019
In millions of dollars	Corporate			Consumer			Total			Corporate			Consumer			Total
Allowance for credit losses on loans at beginning of period	$	2,886		$	9,897		$	12,783		$	2,811		$	9,504		$	12,315
Adjustment to opening balance for CECL adoption	(721		)	4,922			4,201			—			—			—
Charge-offs	(138		)	(2,341		)	(2,479		)	(100		)	(2,245		)	(2,345		)
Recoveries	11			360			371			21			376			397
Replenishment of net charge-offs	127			1,981			2,108			79			1,869			1,948
Net reserve builds (releases)	1,268			2,844			4,112			4			63			67
Net specific reserve builds (releases)	48			176			224			(79		)	8			(71		)
Initial allowance for credit losses on purchased credit deteriorated assets	—			4			4			—			—			—
Other	(30		)	(453		)	(483		)	(5		)	23			18
Ending balance	$	3,451		$	17,390		$	20,841		$	2,731		$	9,598		$	12,329

	March 31, 2020						December 31, 2019
In millions of dollars	Corporate		Consumer		Total		Corporate		Consumer		Total
Allowance for credit losses on loans
Collectively evaluated	$	3,168	$	16,296	$	19,464	$	2,587	$	8,706	$	11,293
Individually evaluated	283		1,084		1,367		299		1,190		1,489
Purchased credit deteriorated	—		10		10		—		1		1
Total allowance for credit losses on loans	$	3,451	$	17,390	$	20,841	$	2,886	$	9,897	$	12,783
Loans, net of unearned income
Collectively evaluated	$	426,125	$	283,804	$	709,929	$	383,828	$	304,510	$	688,338
Individually evaluated	2,484		4,479		6,963		2,040		4,892		6,932
Purchased credit deteriorated	—		129		129		—		128		128
Held at fair value	3,981		18		3,999		4,067		18		4,085
Total loans, net of unearned income	$	432,590	$	288,430	$	721,020	$	389,935	$	309,548	$	699,483

Allowance for Credit Losses on AFS and HTM Debt Securities

Citi did not have an allowance for credit losses on AFS debt securities at March 31, 2020.

Allowance for Credit Losses on HTM Debt Securities

	Three Months Ended March 31, 2020
In millions of dollars	U.S. Treasury and federal agency		State and municipal		Foreign government		Asset-backed		Total HTM
Allowance for credit losses on HTM debt securities at beginning of period	$	—	$	—	$	—	$	—	$	—
Adjustment to opening balance for CECL adoption	—		61		4		5		70
Gross credit losses	—		—		—		—		—
Gross recoveries	—		—		—		—		—
Net credit losses	$	—	$	—	$	—	$	—	$	—
Net credit losses	$	—	$	—	$	—	$	—	$	—
Net reserve builds (releases)	—		5		—		1		6
Net specific reserve builds (releases)	—		—		—		—		—
Total provision for credit losses on HTM debt securities	$	—	$	5	$	—	$	1	$	6
Other, net	$	—	$	—	$	—	$	—	$	—
Initial allowance for credit losses on newly purchased credit deteriorated assets during the period	—		—		—		—		—
Allowance for credit losses on HTM debt securities at end of period	$	—	$	66	$	4	$	6	$	76

Allowance for Credit Losses on Other Assets

	Three Months Ended March 31, 2020
In millions of dollars	Cash and due from banks			Deposits with banks			Securities borrowed and purchased under agreements to resell		Brokerage receivables			All other assets		Total
Allowance for credit losses at beginning of period	$	—		$	—		$	—	$	—		$	—	$	—
Adjustment to opening balance for CECL adoption	6			14			2		1			3		26
Gross credit losses	—			—			—		—			—		—
Gross recoveries	—			—			—		—			—		—
Net credit losses (NCLs)	$	—		$	—		$	—	$	—		$	—	$	—
NCLs	$	—		$	—		$	—	$	—		$	—	$	—
Net reserve builds (releases)	(6		)	(6		)	3		(1		)	6		(4		)
Total provision for credit losses	$	(6	)	$	(6	)	$	3	$	(1	)	$	6	$	(4	)
Other, net	$	—		$	—		$	—	$	—		$	32	$	32
Allowance for credit losses on Other assets at end of period	$	—		$	8		$	5	$	—		$	41	$	54