ALLOWANCE FOR CREDIT LOSSES

3 Months Ended

Mar. 31, 2012

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES

13.    ALLOWANCE FOR CREDIT LOSSES

	Three Months Ended March 31,
In millions of dollars	2012			2011
Allowance for loan losses at beginning of period	$	30,115		$	40,655
Gross credit losses		(4,771	)		(7,131	)
Gross recoveries		816			862
Net credit losses (NCLs)	$	(3,955	)	$	(6,269	)
NCLs replenishments	$	3,955		$	6,269
Net reserve builds (releases)		(194	)		(3,482	)
Net specific reserve builds (releases)		(933	)		112
Total provision for credit losses	$	2,828		$	2,899
Other, net(1)		32			(717	)
Allowance for loan losses at end of period	$	29,020		$	36,568
Allowance for credit losses on unfunded lending commitments at beginning of period(2)	$	1,136		$	1,066
Provision for unfunded lending commitments		(38	)		25
Allowance for credit losses on unfunded lending commitments at end of period(2)	$	1,097		$	1,105
Total allowance for loans, leases, and unfunded lending commitments	$	30,117		$	37,673

(1)

The first quarter of 2012 primarily includes reductions of approximately $145 million related to the sale or transfer to held-for-sale of various U.S. loan portfolios. The first quarter of 2011 primarily includes reductions of approximately $560 million related to the sale or transfer to held-for-sale of various U.S. loan portfolios and a reduction of $240 million related to the sale of the Egg card business.

(2)

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 and Investment in Loans

	Three Months Ended March 31, 2012
In millions of dollars	Corporate			Consumer			Total
Allowance for loan losses at beginning of year	$	2,879		$	27,236		$	30,115
Charge-offs		(85	)		(4,686	)		(4,771	)
Recoveries		168			648			816
Replenishment. of net charge-offs		(83	)		4,038			3,955
Net reserve releases		154			(348	)		(194	)
Net specific reserve builds (releases)		(4	)		(929	)		(933	)
Other		28			4			32
Ending balance	$	3,057		$	25,963		$	29,020

	March 31, 2012						December 31, 2011
In millions of dollars	Corporate		Consumer		Total		Corporate		Consumer		Total
Allowance for loan losses
Determined in accordance with ASC 450-20	$	2,580	$	18,001	$	20,581	$	2,408	$	18,334	$	20,742
Determined in accordance with ASC 310-10-35		419		7,940		8,359		420		8,885		9,305
Determined in accordance with ASC 310-30		58		22		80		51		17		68
Total allowance for loan losses	$	3,057	$	25,963	$	29,020	$	2,879	$	27,236	$	30,115
Loans, net of unearned income
Loans collectively evaluated for impairment in accordance with ASC 450-20	$	225,029	$	384,933	$	609,962	$	215,778	$	390,831	$	606,609
Loans evaluated for impairment in accordance with ASC 310-10-35		3,293		29,492		32,785		3,994		30,863		34,857
Loans acquired with deteriorated credit quality in accordance with ASC 310-30		167		364		531		191		320		511
Loans held at fair value		3,430		1,314		4,744		3,939		1,326		5,265
Total loans, net of unearned income	$	231,919	$	416,103	$	648,022	$	223,902	$	423,340	$	647,242