ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2011

ALLOWANCE FOR CREDIT LOSSES

Allowance for credit losses

		Three Months Ended September 30, 2011						Nine Months Ended September 30, 2011
In millions of dollars		2011			2010			2011			2010
Allowance for loan losses at beginning of period		$	34,362		$	46,197		$	40,655		$	36,033
	Gross credit losses		(5,217	)		(8,499	)		(18,254	)		(26,707	)
	Gross recoveries		703			840			2,324			2,702
Net credit losses (NCLs)		$	(4,514	)	$	(7,659	)	$	(15,930	)	$	(24,005	)
	NCLs	$	4,514		$	7,659		$	15,930		$	24,005
	Net reserve builds (releases)		(1,591	)		(1,470	)		(7,023	)		(4,104	)
	Net specific reserve builds (releases)		126			(523	)		222			654
Total provision for credit losses		$	3,049		$	5,666		$	9,129		$	20,555
Other, net(1)			(845	)		(530	)		(1,802	)		11,091
Allowance for loan losses at end of period		$	32,052		$	43,674		$	32,052		$	43,674
Allowance for credit losses on unfunded lending commitments at beginning of period(2)		$	1,097		$	1,054		$	1,066		$	1,157
Provision for unfunded lending commitments			43			26			55			(80	)
Allowance for credit losses on unfunded lending commitments at end of period(2)		$	1,139		$	1,102		$	1,139		$	1,102
Total allowance for loans, leases, and unfunded lending commitments at end of period		$	33,191		$	44,776		$	33,191		$	44,776

(1)

The nine months ended September 30, 2011 includes a reduction of approximately $1.2 billion 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 nine months ended September 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 $1.8 billion, 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 September 30, 2011
In millions of dollars		Corporate			Consumer			Total
Allowance for loan losses
	Beginning balance June 30, 2011	$	3,447		$	30,915		$	34,362
	Charge-offs		(298	)		(4,919	)		(5,217	)
	Recoveries		26			677			703
	Replenishment of net charge-offs		272			4,242			4,514
	Net reserve builds (releases)		(118	)		(1,473	)		(1,591	)
	Net specific reserve builds (releases)(1)		(109	)		235			126
	Other		(34	)		(811	)		(845	)
Ending balance		$	3,186		$	28,866		$	32,052

		Nine Months Ended September 30, 2011
		Corporate			Consumer			Total
Allowance for loan losses
	Beginning balance December 31, 2010	$	5,249		$	35,406		$	40,655
	Charge-offs		(1,699	)		(16,555	)		(18,254	)
	Recoveries		228			2,096			2,324
	Replenishment of net charge-offs		1,471			14,459			15,930
	Net reserve builds (releases)		(870	)		(6,153	)		(7,023	)
	Net specific reserve builds (releases)(1)		(1,186	)		1,408			222
	Other		(7	)		(1,795	)		(1,802	)
Ending balance		$	3,186		$	28,866		$	32,052

(1)

Includes $467 million attributable to certain Consumer loan modifications newly classified as TDRs in accordance with ASU 2011-02. Substantially all of this amount had previously been included in the non-specific reserves.

		September 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	$	2,626	$	19,844	$	22,470	$	3,510	$	27,644	$	31,154
	Determined in accordance with ASC 310-10-35		507		9,005		9,512		1,689		7,735		9,424
	Determined in accordance with ASC 310-30		53		17		70		50		27		77
Total allowance for loan losses		$	3,186	$	28,866	$	32,052	$	5,249	$	35,406	$	40,655
Loans, net of unearned income
	Loans collectively evaluated for impairment in accordance with ASC 450-20(2)	$	203,565	$	392,977	$	596,542	$	181,052	$	426,444	$	607,496
	Loans evaluated for impairment in accordance with ASC 310-10-35		4,840		30,089		34,929		9,139		27,318		36,457
	Loans acquired with deteriorated credit quality in accordance with ASC 310-30		152		253		405		244		225		469
	Loans held at fair value		4,056		1,307		5,363		2,627		1,745		4,372
Total loans, net of unearned income		$	212,613	$	424,626	$	637,239	$	193,062	$	455,732	$	648,794

(1)

Classifiably managed Consumer loans (commercial market 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 portion of the 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.