ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2011

ALLOWANCE FOR CREDIT LOSSES

Allowance for credit losses

		Three Months Ended June 30,						Six Months Ended June 30,
In millions of dollars		2011			2010			2011			2010
Allowance for loan losses at beginning of period		$	36,568		$	48,746		$	40,655		$	36,033
	Gross credit losses		(5,906	)		(9,006	)		(13,037	)		(18,208	)
	Gross recoveries		759			1,044			1,621			1,862
Net credit (losses) recoveries (NCLs)		$	(5,147	)	$	(7,962	)	$	(11,416	)	$	(16,346	)
	NCLs	$	5,147		$	7,962		$	11,416		$	16,346
	Net reserve builds (releases)		(1,950	)		(1,752	)		(5,432	)		(2,634	)
	Net specific reserve builds (releases)		(16	)		313			96			1,177
Total provision for credit losses		$	3,181		$	6,523		$	6,080		$	14,889
Other, net(1)			(240	)		(1,110	)		(957	)		11,621
Allowance for loan losses at end of period		$	34,362		$	46,197		$	34,362		$	46,197
Allowance for credit losses on unfunded lending commitments at beginning of period(2)		$	1,105		$	1,122		$	1,066		$	1,157
Provision for unfunded lending commitments			(13	)		(71	)		12			(106	)
Allowance for credit losses on unfunded lending commitments at end of period(2)		$	1,097		$	1,054		$	1,097		$	1,054
Total allowance for loans, leases, and unfunded lending commitments at end of period		$	35,459		$	47,251		$	35,459		$	47,251

(1)

The six months ended June 30, 2011 includes a reduction of approximately $930 million related to the sale or transfers to held-for-sale of various U.S. loan portfolios and a reduction of $240 million related to the sale of the Egg Banking PLC credit card business. The six months ended June 30, 2010 primarily includes an increase of $13.4 billion related to the impact of consolidating entities in connection with Citi's adoption of SFAS 167 on January 1, 2010 offset by reductions related to sales or transfers to held-for-sale for U.S. real estate lending loans of approximately $825 million, U.K. real estate lending loans of approximately $290 million, the Canada Cards portfolio of approximately $107 million, and an auto portfolio of approximately $130 million.

(2)

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

Schedule of allowance for credit losses and investment in loans by portfolio segment

		Three Months Ended June 30, 2011
In millions of dollars		Corporate			Consumer			Total
Allowance for loan losses
	Beginning balance March 31, 2011	$	3,842		$	32,726		$	36,568
	Charge-offs		(402	)		(5,504	)		(5,906	)
	Recoveries		53			706			759
	Replenishment of net charge-offs		349			4,798			5,147
	Net reserve builds (releases)		(157	)		(1,793	)		(1,950	)
	Net specific reserve builds (releases)		(283	)		267			(16	)
	Other		1			(241	)		(240	)
Ending balance		$	3,403		$	30,959		$	34,362

		Six Months Ended June 30, 2011
		Corporate			Consumer			Total
Allowance for loan losses
	Beginning balance December 31, 2010	$	5,210		$	35,445		$	40,655
	Charge-offs		(1,400	)		(11,637	)		(13,037	)
	Recoveries		202			1,419			1,621
	Replenishment of net charge-offs		1,198			10,218			11,416
	Net reserve builds (releases)		(757	)		(4,675	)		(5,432	)
	Net specific reserve builds (releases)		(1,077	)		1,173			96
	Other		27			(984	)		(957	)
Ending balance		$	3,403		$	30,959		$	34,362

		June 30, 2011						December 31, 2010
In millions of dollars		Corporate		Consumer(1)		Total		Corporate		Consumer(1)		Total
Allowance for loan losses
	Determined in accordance with ASC 450-20	$	2,727	$	22,068	$	24,795	$	3,471	$	27,683	$	31,154
	Determined in accordance with ASC 310-10-35		617		8,874		9,491		1,689		7,735		9,424
	Determined in accordance with ASC 310-30		59		17		76		50		27		77
Total allowance for loan losses		$	3,403	$	30,959	$	34,362	$	5,210	$	35,445	$	40,655
Loans, net of unearned income
	Loans collectively evaluated for impairment in accordance with ASC 450-20(2)	$	195,466	$	411,657	$	607,123	$	179,162	$	428,334	$	607,496
	Loans evaluated for impairment in accordance with ASC 310-10-35		5,329		29,747		35,076		9,129		27,328		36,457
	Loans acquired with deteriorated credit quality in accordance with ASC 310-30		243		218		461		244		225		469
	Loans held at fair value		3,418		1,422		4,840		2,627		1,745		4,372
Total loans, net of unearned income		$	204,456	$	443,044	$	647,500	$	191,162	$	457,632	$	648,794

(1)

Classifiably managed Consumer loans are evaluated for impairment in a manner consistent with that for Corporate loans. That is, an asset-specific component is calculated under ASC 310-10-35 on an individual basis for larger-balance, non-homogeneous loans which are considered impaired and the allowance for the remainder of the classifiably managed Consumer loan portfolio is calculated under ASC 450 using a statistical methodology, supplemented by management adjustment.

(2)

Only considers contractual principal amounts due, except for credit card loans where estimated loss amounts related to accrued interest receivable are also included.