ALLOWANCE FOR CREDIT LOSSES

9 Months Ended

Sep. 30, 2024


	Three Months Ended September 30,				Nine Months Ended September 30,
In millions of dollars	2024		2023		2024		2023
Allowance for credit losses on loans (ACLL) at beginning of period	$	18,216	$	17,496	$	18,145	$	16,974
Adjustments to opening balance(1)
Financial instruments—TDRs and vintage disclosures(1)	—		—		—		(352)

Adjusted ACLL at beginning of period	$	18,216	$	17,496	$	18,145	$	16,622
Gross credit losses on loans	$	(2,609)	$	(2,000)	$	(8,014)	$	(5,513)
Gross recoveries on loans	437		363		1,256		1,070
Net credit losses on loans (NCLs)	$	(2,172)	$	(1,637)	$	(6,758)	$	(4,443)
Replenishment of NCLs	$	2,172	$	1,637	$	6,758	$	4,443
Net reserve builds (releases) for loans	254		100		636		787
Net specific reserve builds (releases) for loans	(44)		79		(231)		84
Total provision for credit losses on loans (PCLL)	$	2,382	$	1,816	$	7,163	$	5,314
Initial allowance for credit losses on newly purchased credit-deteriorated assets during the period(2)	23		—		23		—
Other, net (see table below)	(93)		(46)		(217)		136
ACLL at end of period	$	18,356	$	17,629	$	18,356	$	17,629
Allowance for credit losses on unfunded lending commitments (ACLUC) at beginning of period(3)	$	1,619	$	1,862	$	1,728	$	2,151

Provision (release) for credit losses on unfunded lending commitments	105		(54)		(1)		(344)
Other, net	1		(2)		(2)		(1)
ACLUC at end of period(3)	$	1,725	$	1,806	$	1,725	$	1,806
Total allowance for credit losses on loans, leases and unfunded lending commitments	$	20,081	$	19,435	$	20,081	$	19,435


Other, net details	Three Months Ended September 30,				Nine Months Ended September 30,
In millions of dollars	2024		2023		2024		2023




FX translation and other	$	(93)	$	(46)	$	(217)	$	136
Other, net	$	(93)	$	(46)	$	(217)	$	136

(1)See “Accounting Changes” in Note 1 to the Consolidated Financial Statements in Citi’s 2023 Form 10-K.

(2)Upon acquisition, the par value of the purchased credit-deteriorated assets was approximately $37 million and $6 million during the three months ended September 30, 2024 and 2023 and $46 million and $19 million during the nine months ended September 30, 2024 and 2023, respectively.

(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 on Loans and End-of-Period Loans


	Three Months Ended
	September 30, 2024						September 30, 2023
In millions of dollars	Corporate		Consumer		Total		Corporate		Consumer		Total
ACLL at beginning of period	$	2,484	$	15,732	$	18,216	$	2,630	$	14,866	$	17,496




Charge-offs	(113)		(2,496)		(2,609)		(72)		(1,928)		(2,000)
Recoveries	39		398		437		14		349		363
Replenishment of NCLs	74		2,098		2,172		58		1,579		1,637
Net reserve builds (releases)	143		111		254		25		75		100
Net specific reserve builds (releases)	(40)		(4)		(44)		77		2		79
Initial allowance for credit losses on newly purchased credit-deteriorated assets during the period(2)	—		23		23		—		—		—
Other	4		(97)		(93)		(15)		(31)		(46)
Ending balance	$	2,591	$	15,765	$	18,356	$	2,717	$	14,912	$	17,629
	Nine Months Ended
	September 30, 2024						September 30, 2023
In millions of dollars	Corporate		Consumer		Total		Corporate		Consumer		Total
ACLL at beginning of period	$	2,714	$	15,431	$	18,145	$	2,855	$	14,119	$	16,974
Adjustments to opening balance:
Financial instruments—TDRs and vintage disclosures(1)	—		—		—		—		(352)		(352)

Adjusted ACLL at beginning of period	$	2,714	$	15,431	$	18,145	$	2,855	$	13,767	$	16,622
Charge-offs	$	(420)	$	(7,594)	$	(8,014)	$	(197)	$	(5,316)	$	(5,513)
Recoveries	74		1,182		1,256		42		1,028		1,070
Replenishment of NCLs	346		6,412		6,758		155		4,288		4,443
Net reserve builds (releases)	115		521		636		(184)		971		787
Net specific reserve builds (releases)	(229)		(2)		(231)		49		35		84
Initial allowance for credit losses on newly purchased credit-deteriorated assets during the period(2)	—		23		23		—		—		—
Other	(9)		(208)		(217)		(3)		139		136
Ending balance	$	2,591	$	15,765	$	18,356	$	2,717	$	14,912	$	17,629


	September 30, 2024						December 31, 2023
In millions of dollars	Corporate		Consumer		Total		Corporate		Consumer		Total
ACLL
Collectively evaluated(1)	$	2,451	$	15,704	$	18,155	$	2,352	$	15,391	$	17,743
Individually evaluated	140		39		179		362		40		402
Purchased credit deteriorated	—		22		22		—		—		—
Total ACLL	$	2,591	$	15,765	$	18,356	$	2,714	$	15,431	$	18,145
Loans, net of unearned income
Collectively evaluated(1)	$	291,023	$	388,645	$	679,668	$	291,002	$	388,711	$	679,713
Individually evaluated	944		60		1,004		1,882		58		1,940
Purchased credit deteriorated	—		144		144		—		115		115
Held at fair value	7,804		302		8,106		7,281		313		7,594
Total loans, net of unearned income	$	299,771	$	389,151	$	688,922	$	300,165	$	389,197	$	689,362

(1) See “Accounting Changes” in Note 1 to the Consolidated Financial Statements in Citi’s 2023 Form 10-K.

(2) Upon acquisition, the par value of the purchased credit-deteriorated assets was approximately $37 million and $6 million during the three months ended September 30, 2024 and 2023 and $46 million and $19 million during the nine months ended September 30, 2024 and 2023, respectively.

3Q24 Changes in the ACL

The total allowance for credit losses on loans, leases and unfunded lending commitments as of September 30, 2024 was $20,081 million, a slight increase from $19,873 million at December 31, 2023, primarily reflecting the impact of macroeconomic pressures related to the elevated inflationary and interest rate environment, partially offset by an improved macroeconomic outlook.

Consumer ACLL

Citi’s total consumer allowance for credit losses on loans (ACLL) as of September 30, 2024 was $15,765 million, an increase from $15,431 million at December 31, 2023. The increase was primarily driven by the impact of macroeconomic pressures related to the elevated inflationary and interest rate environment.

Corporate ACLL

Citi’s total corporate ACLL as of September 30, 2024 was $2,591 million, a decrease from $2,714 million at December 31, 2023. The decrease was primarily driven by an improved macroeconomic outlook.

ACLUC

As of September 30, 2024, Citi’s total allowance for unfunded lending commitments (ACLUC), included in Other liabilities, was $1,725 million, a slight decrease from $1,728 million at December 31, 2023. The decrease was primarily driven by an improved macroeconomic outlook, mostly offset by changes in portfolio composition.

Allowance for Credit Losses on HTM Debt Securities

The allowance for credit losses on HTM debt securities, which the Company has the intent and ability to hold, was $141 million and $95 million as of September 30, 2024 and December 31, 2023, respectively.

Allowance for Credit Losses on Other Assets


	Three Months Ended September 30, 2024
In millions of dollars	Deposits with banks		Securities borrowed and purchased under agreements to resell		All other assets(1)		Total
Allowance for credit losses on other assets at beginning of quarter	$	21	$	33	$	1,857	$	1,911

Gross credit losses	—		—		(14)		(14)
Gross recoveries	—		—		8		8
Net credit losses (NCLs)	$	—	$	—	$	(6)	$	(6)
Replenishment of NCLs	$	—	$	—	$	6	$	6
Net reserve builds (releases)	2		(27)		129		104
Total provision for credit losses	$	2	$	(27)	$	135	$	110
Other, net	$	—	$	(2)	$	(144)	$	(146)
Allowance for credit losses on other assets at end of quarter	$	23	$	4	$	1,842	$	1,869
	Nine Months Ended September 30, 2024
In millions of dollars	Deposits with banks		Securities borrowed and purchased under agreements to resell		All other assets(1)		Total
Allowance for credit losses on other assets at beginning of year	$	31	$	27	$	1,730	$	1,788

Gross credit losses	—		—		(42)		(42)
Gross recoveries	—		—		21		21
Net credit losses (NCLs)	$	—	$	—	$	(21)	$	(21)
Replenishment of NCLs	$	—	$	—	$	21	$	21
Net reserve builds (releases)	(9)		(22)		236		205
Total provision for credit losses	$	(9)	$	(22)	$	257	$	226
Other, net	$	1	$	(1)	$	(124)	$	(124)
Allowance for credit losses on other assets at end of quarter	$	23	$	4	$	1,842	$	1,869

(1)Primarily ACL related to transfer risk associated with exposures outside the U.S. driven by safety and soundness considerations under U.S. banking law.


	Three Months Ended September 30, 2023
In millions of dollars	Deposits with banks		Securities borrowed and purchased under agreements to resell		All other assets(1)		Total
Allowance for credit losses on other assets at beginning of quarter	$	21	$	26	$	612	$	659

Gross credit losses	—		—		(19)		(19)
Gross recoveries	—		—		6		6
Net credit losses (NCLs)	$	—	$	—	$	(13)	$	(13)
Replenishment of NCLs	$	—	$	—	$	13	$	13
Net reserve builds (releases)	6		30		7		43
Total provision for credit losses	$	6	$	30	$	20	$	56
Other, net	$	—	$	(3)	$	(1)	$	(4)
Allowance for credit losses on other assets at end of quarter	$	27	$	53	$	618	$	698
	Nine Months Ended September 30, 2023
In millions of dollars	Deposits with banks		Securities borrowed and purchased under agreements to resell		All other assets(1)		Total
Allowance for credit losses on other assets at beginning of year	$	51	$	36	$	36	$	123

Gross credit losses	—		—		(54)		(54)
Gross recoveries	—		—		11		11
Net credit losses (NCLs)	$	—	$	—	$	(43)	$	(43)
Replenishment of NCLs	$	—	$	—	$	43	$	43
Net reserve builds (releases)	(23)		27		583		587
Total provision for credit losses	$	(23)	$	27	$	626	$	630
Other, net	$	(1)	$	(10)	$	(1)	$	(12)
Allowance for credit losses on other assets at end of quarter	$	27	$	53	$	618	$	698

(1) Primarily ACL related to transfer risk associated with exposures outside the U.S. driven by safety and soundness considerations under U.S. banking law.

For ACL on AFS debt securities, see Note 13.