ALLOWANCE FOR CREDIT LOSSES

3 Months Ended

Mar. 31, 2023

Loans and Leases Receivable Disclosure [Abstract]


	Three Months Ended March 31,
In millions of dollars	2023		2022
Allowance for credit losses on loans (ACLL) at beginning of period	$	16,974	$	16,455
Adjustments to opening balance(1)
Financial instruments—TDRs and vintage disclosures(1)	$	(352)	$	—

Adjusted ACLL at beginning of period	16,622		16,455
Gross credit losses on loans	$	(1,634)	$	(1,240)
Gross recoveries on loans	332		368
Net credit losses on loans (NCLs)	$	(1,302)	$	(872)
Replenishment of NCLs	$	1,302	$	872
Net reserve builds (releases) for loans	397		(781)
Net specific reserve builds (releases) for loans	38		169
Total provision for credit losses on loans (PCLL)	$	1,737	$	260

Other, net (see table below)	112		(450)
ACLL at end of period	$	17,169	$	15,393
Allowance for credit losses on unfunded lending commitments (ACLUC) at beginning of period(2)	$	2,151	$	1,871

Provision (release) for credit losses on unfunded lending commitments	(194)		474
Other, net	2		(2)
ACLUC at end of period(2)	$	1,959	$	2,343
Total allowance for credit losses on loans, leases and unfunded lending commitments(3)	$	19,128	$	17,736


Other, net details	Three Months Ended March 31,
In millions of dollars	2023		2022



Reclasses of consumer ACLL to HFS(4)	$	—	$	(350)
FX translation and other	112		(100)
Other, net	$	112	$	(450)

(1) See Note 1 for a description of the impact of adopting ASU 2022-02 on the ACL.

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

(3) See below for ACL on HTM debt securities and Other assets.

(4) See Note 2.

Allowance for Credit Losses on Loans and End-of-Period Loans


	Three Months Ended
	March 31, 2023						March 31, 2022
In millions of dollars	Corporate		Consumer		Total		Corporate		Consumer		Total
ACLL at beginning of period	$	2,855	$	14,119	$	16,974	$	2,415	$	14,040	$	16,455
Adjustment to opening balance(1)
Financial instruments—TDRs and vintage disclosures(1)	—		(352)		(352)		—		—		—

Adjusted ACLL at beginning of period	$	2,855	$	13,767	$	16,622	$	2,415	$	14,040	$	16,455
Charge-offs	$	(39)	$	(1,595)	$	(1,634)	$	(48)	$	(1,192)	$	(1,240)
Recoveries	17		315		332		17		351		368
Replenishment of NCLs	22		1,280		1,302		31		841		872
Net reserve builds (releases)	(90)		487		397		376		(1,157)		(781)
Net specific reserve builds (releases)	5		33		38		225		(56)		169

Other	10		102		112		9		(459)		(450)
Ending balance	$	2,780	$	14,389	$	17,169	$	3,025	$	12,368	$	15,393


	March 31, 2023						December 31, 2022
In millions of dollars	Corporate		Consumer		Total		Corporate		Consumer		Total
ACLL
Collectively evaluated(1)	$	2,451	$	14,351	$	16,802	$	2,532	$	13,521	$	16,053
Individually evaluated	329		39		368		323		596		919
Purchased credit deteriorated	—		(1)		(1)		—		2		2
Total ACLL	$	2,780	$	14,389	$	17,169	$	2,855	$	14,119	$	16,974
Loans, net of unearned income
Collectively evaluated(1)	$	282,190	$	363,306	$	645,496	$	282,909	$	364,795	$	647,704
Individually evaluated	1,213		39		1,252		1,122		2,921		4,043
Purchased credit deteriorated	—		113		113		—		114		114
Held at fair value	4,896		238		5,134		5,123		237		5,360
Total loans, net of unearned income	$	288,299	$	363,696	$	651,995	$	289,154	$	368,067	$	657,221

(1) See Note 1 for a description of the effect of adopting ASU 2022-02 on the ACL and for Citi’s updated accounting policy for collectively evaluating the ACL for consumer loans formerly considered TDRs.

1Q23 Changes in the ACL

The total allowance for credit losses on loans, leases and unfunded lending commitments as of March 31, 2023 was $19,128 million, a slight increase from $19,125 million at December 31, 2022. The increase in the ACLL was primarily driven by macroeconomic deterioration and growth in card revolving balances, partially offset by a decrease in the ACLL of $352 million from the adoption of ASU 2022-02 for the recognition and measurement of TDRs (see Note 1) and a decrease in the ACLUC primarily driven by reductions in Russia exposures.

Consumer ACLL

Citi’s total consumer allowance for credit losses on loans (ACLL) as of March 31, 2023 was $14,389 million, an increase from $14,119 million at December 31, 2022. The increase was primarily driven by a deterioration in macroeconomic assumptions and growth in U.S. Cards revolving balances, partially offset by a decrease to the ACLL of $352 million from the adoption of ASU 2022-02 for the recognition and measurement of TDRs.

Corporate ACLL

Citi’s total corporate ACLL as of March 31, 2023 was $2,780 million, a decrease from $2,855 million at December 31, 2022. The decrease was primarily driven by reductions in Russia exposures.

ACLUC

As of March 31, 2023, Citi’s total ACLUC, included in Other liabilities, was $1,959 million, a decrease from $2,151 million at December 31, 2022. The decrease was primarily driven by reductions in Russia exposures.

Allowance for Credit Losses on HTM Debt Securities


	Three Months Ended March 31, 2023
In millions of dollars	Mortgage-backed		State and municipal		Foreign government		Asset-backed		Total HTM
Allowance for credit losses on HTM debt securities at beginning of quarter	$	1	$	113	$	3	$	3	$	120
Gross credit losses	—		—		—		—		—
Gross recoveries	—		—		—		—		—
Net credit losses (NCLs)	$	—	$	—	$	—	$	—	$	—
Replenishment of NCLs	$	—	$	—	$	—	$	—	$	—
Net reserve builds (releases)	2		(15)		—		(4)		(17)
Net specific reserve builds (releases)	—		—		—		—		—
Total provision for credit losses on HTM debt securities	$	2	$	(15)	$	—	$	(4)	$	(17)
Other, net	$	(1)	$	—	$	—	$	2	$	1

Allowance for credit losses on HTM debt securities at end of quarter	$	2	$	98	$	3	$	1	$	104


	Three Months Ended March 31, 2022
In millions of dollars	Mortgage-backed		State and municipal		Foreign government		Asset-backed		Total HTM
Allowance for credit losses on HTM debt securities at beginning of quarter	$	6	$	75	$	4	$	2	$	87

Gross credit losses	—		—		—		—		—
Gross recoveries	—		—		—		—		—
Net credit losses (NCLs)	$	—	$	—	$	—	$	—	$	—
Replenishment of NCLs	$	—	$	—	$	—	$	—	$	—
Net reserve builds (releases)	(2)		4		(2)		(2)		(2)
Net specific reserve builds (releases)			—		—		—
Total provision for credit losses on HTM debt securities	$	(2)	$	4	$	(2)	$	(2)	$	(2)
Other, net	$	—	$	—	$	—	$	—	$	—

Allowance for credit losses on HTM debt securities at end of quarter	$	4	$	79	$	2	$	—	$	85

Allowance for Credit Losses on Other Assets


	Three Months Ended March 31, 2023
In millions of dollars	Deposits with banks		Securities borrowed and purchased under agreements to resell		Brokerage receivables		All other assets(1)		Total
Allowance for credit losses on other assets at beginning of quarter	$	51	$	36	$	—	$	36	$	123

Gross credit losses	—		—		—		(11)		(11)
Gross recoveries	—		—		—		—		—
Net credit losses (NCLs)	$	—	$	—	$	—	$	(11)	$	(11)
Replenishment of NCLs	$	—	$	—	$	—	$	11	$	11
Net reserve builds (releases)	85		(3)		—		332		414
Total provision for credit losses	$	85	$	(3)	$	—	$	343	$	425
Other, net	$	(1)	$	(3)	$	—	$	(5)	$	(9)
Allowance for credit losses on other assets at end of quarter	$	135	$	30	$	—	$	363	$	528

(1)Primarily an increase related to transfer risk associated with exposures outside of the U.S.


	Three Months Ended March 31, 2022
In millions of dollars	Deposits with banks		Securities borrowed and purchased under agreements to resell		Brokerage receivables		All other assets(1)		Total
Allowance for credit losses on other assets at beginning of quarter	$	21	$	6	$	—	$	26	$	53

Gross credit losses	—		—		—		(7)		(7)
Gross recoveries	—		—		—		—		—
Net credit losses (NCLs)	$	—	$	—	$	—	$	(7)	$	(7)
Replenishment of NCLs	$	—	$	—	$	—	$	7	$	7
Net reserve builds (releases)	(6)		(2)		—		(3)		(11)
Total provision for credit losses	$	(6)	$	(2)	$	—	$	4	$	(4)
Other, net	$	—	$	—	$	—	$	1	$	1
Allowance for credit losses on other assets at end of quarter	$	15	$	4	$	—	$	24	$	43

(1) Primarily accounts receivable.

For ACL on AFS debt securities, see Note 12.