ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2013

ALLOWANCE FOR CREDIT LOSSES

Allowance for credit losses

	Three months ended September 30,						Nine months ended September 30,
In millions of dollars	2013			2012			2013			2012
Allowance for loan losses at beginning of period	$	21,580		$	27,611		$	25,455		$	30,115
Gross credit losses(1)		(2,974	)		(4,516	)		(9,675	)		(13,365	)
Gross recoveries		544			619			1,759			2,119
Net credit losses (NCLs)	$	(2,430	)	$	(3,897	)	$	(7,916	)	$	(11,246	)
NCLs replenishments	$	2,430		$	3,897		$	7,916		$	11,246
Net reserve builds (releases)(1)(2)		(767	)		(860	)		(1,715	)		(1,715	)
Net specific reserve builds (releases)(1)(2)		(11	)		(601	)		(508	)		(1,911	)
Total provision for credit losses	$	1,652		$	2,436		$	5,693		$	7,620
Other, net(3)		(197	)		(234	)		(2,627	)		(573	)
Allowance for loan losses at end of period	$	20,605		$	25,916		$	20,605		$	25,916
Allowance for credit losses on unfunded lending commitments at beginning of period(4)	$	1,133		$	1,104		$	1,119		$	1,136
Provision (release) for unfunded lending commitments		103			(41	)		114			(72	)
Other, net		26			—			29			(1	)
Allowance for credit losses on unfunded lending commitments at end of period(4)	$	1,262		$	1,063		$	1,262		$	1,063
Total allowance for loans, leases, and unfunded lending commitments	$	21,867		$	26,979		$	21,867		$	26,979

(1)

The first quarter of 2012 included approximately $370 million of incremental charge-offs related to previously deferred principal balances on modified mortgages related to anticipated forgiveness of principal in connection with the national mortgage settlement. There was a corresponding approximate $350 million reserve release in the first quarter of 2012 specific to these charge-offs.

(2)

The first, second, and third quarters of 2013 include $148 million, $124 million, and $91 million, respectively, of builds (releases) related to (gains) losses on loan sales. The first, second, and third quarters of 2012 include $60 million, $73 million, and $32 million, respectively, of builds (releases) related to (gains) losses on loan sales.

(3)

The third quarter of 2013 includes a reduction of approximately $214 million related to the sale or transfers to held-for-sale of various loan portfolios. The second quarter of 2013 includes a reduction of approximately $650 million related to the sale or transfers to held-for-sale of various U.S. loan portfolios and a reduction of approximately $360 million related to the Brazil Credicard transfer to Discontinued operations. Additionally, a reduction of approximately $90 million related to a transfer to held-for-sale of a loan portfolio in Greece and a reduction of approximately $220 million related to foreign currency translation. The first quarter of 2013 primarily includes reductions of approximately $855 million related to the sale or transfer to held-for-sale of various U.S. loan portfolios and a reduction of $165 million related to a transfer to held-for-sale of a loan portfolio in Greece. The third quarter of 2012 includes a reduction of approximately $300 million related to the sale or transfers to held-for-sale of various U.S. loan portfolios. The second quarter of 2012 includes a reduction of approximately $175 million related to the sale or transfers to held-for-sale of various U.S. loan portfolios and a reduction of approximately $200 million related to foreign currency translation. 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.

(4)

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, 2013									Nine months ended September 30, 2013
In millions of dollars	Corporate			Consumer			Total			Corporate			Consumer			Total
Allowance for loan losses at beginning of period	$	2,708		$	18,872		$	21,580		$	2,776		$	22,679		$	25,455
Charge-offs		(148	)		(2,826	)		(2,974	)		(305	)		(9,370	)		(9,675	)
Recoveries		52			492			544			119			1,640			1,759
Replenishment of net charge-offs		96			2,334			2,430			186			7,730			7,916
Net reserve releases		18			(785	)		(767	)		(111	)		(1,604	)		(1,715	)
Net specific reserve builds (releases)		(45	)		34			(11	)		27			(535	)		(508	)
Other		12			(209	)		(197	)		1			(2,628	)		(2,627	)
Ending balance	$	2,693		$	17,912		$	20,605		$	2,693		$	17,912		$	20,605

	Three months ended September 30, 2012									Nine months ended September 30, 2012
In millions of dollars	Corporate			Consumer			Total			Corporate			Consumer			Total
Allowance for loan losses at beginning of period	$	2,972		$	24,639		$	27,611		$	2,879		$	27,236		$	30,115
Charge-offs		(196	)		(4,320	)		(4,516	)		(508	)		(12,857	)		(13,365	)
Recoveries		79			540			619			320			1,799			2,119
Replenishment of net charge-offs		117			3,780			3,897			188			11,058			11,246
Net reserve releases		1			(861	)		(860	)		78			(1,793	)		(1,715	)
Net specific reserve builds (releases)		(175	)		(426	)		(601	)		(170	)		(1,741	)		(1,911	)
Other		19			(253	)		(234	)		30			(603	)		(573	)
Ending balance	$	2,817		$	23,099		$	25,916		$	2,817		$	23,099		$	25,916

	September 30, 2013						December 31, 2012
In millions of dollars	Corporate		Consumer		Total		Corporate		Consumer		Total
Allowance for loan losses
Determined in accordance with ASC 450-20	$	2,315	$	12,632	$	14,947	$	2,429	$	15,703	$	18,132
Determined in accordance with ASC 310-10-35		296		5,251		5,547		284		6,941		7,225
Determined in accordance with ASC 310-30		82		29		111		63		35		98
Total allowance for loan losses	$	2,693	$	17,912	$	20,605	$	2,776	$	22,679	$	25,455
Loans, net of unearned income
Loans collectively evaluated for impairment in accordance with ASC 450-20	$	262,888	$	361,923	$	624,811	$	239,849	$	377,374	$	617,223
Loans evaluated for impairment in accordance with ASC 310-10-35		2,522		24,227		26,749		2,776		29,640		32,416
Loans acquired with deteriorated credit quality in accordance with ASC 310-30		117		676		793		112		426		538
Loans held at fair value		4,202		996		5,198		4,056		1,231		5,287
Total loans, net of unearned income	$	269,729	$	387,822	$	657,551	$	246,793	$	408,671	$	655,464