Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2024

Forecasted Key Macroeconomic Variables Used in Estimating Lifetime ECL

The following table presents the forecasted key macroeconomic variables in our Central scenarios used for estimating lifetime ECL at December 31, 2024 and 2023:


	For the Quarter Ended
	June 30, 2025		December 31, 2025
Unemployment rate (quarterly average):
Forecast at December 31, 2024	4.4	%	4.4	%

Forecast at December 31, 2023	4.2		4.1
GDP growth rate (year-over-year):
Forecast at December 31, 2024	2.0		1.8

Forecast at December 31, 2023	1.8		2.1

Summary of Allowance for Credit Losses and Liability for Off-balance Sheet Credit Exposures

The following table summarizes our allowance for credit losses and the liability for off-balance sheet credit exposures:


At December 31,	2024		2023
	(in millions)
Allowance for credit losses:
Loans	$	537	$	591
Securities held-to-maturity(1)	—		—
Other financial assets measured at amortized cost(2)	—		—
Securities available-for-sale(1)	—		—
Total allowance for credit losses	$	537	$	591

Liability for off-balance sheet credit exposures	$	139	$	111

(1)See Note 6, "Securities," for additional information regarding the allowance for credit losses associated with our security portfolios.

(2)Primarily includes accrued interest receivables and customer acceptances.

Summary of Changes in the Allowance for Credit Losses by Product Line

The following table summarizes the changes in the allowance for credit losses on loans by product or line of business during the years ended December 31, 2024, 2023 and 2022:


	Commercial Loans								Consumer Loans
	Real Estate, including Construction		Business and Corporate Banking		Global Banking		Other Comm'l		Residential Mortgages		Home Equity Mortgages		Credit Cards		Other Consumer		Total Loans
	(in millions)


















Year Ended December 31, 2024
Allowance for credit losses – beginning of period	$	144	$	302	$	127	$	1	$	(9)	$	7	$	16	$	3	$	591


Provision charged (credited) to income	17		27		(16)		—		(7)		(2)		1		2		22
Charge-offs	(17)		(58)		(3)		—		—		—		(8)		(1)		(87)
Recoveries	—		2		—		—		4		1		4		—		11
Net (charge-offs) recoveries	(17)		(56)		(3)		—		4		1		(4)		(1)		(76)

Allowance for credit losses – end of period	$	144	$	273	$	108	$	1	$	(12)	$	6	$	13	$	4	$	537

Year Ended December 31, 2023
Allowance for credit losses – beginning of period	$	200	$	230	$	120	$	1	$	11	$	2	$	16	$	4	$	584


Provision charged (credited) to income	(56)		111		7		—		(19)		4		4		—		51
Charge-offs	—		(48)		—		—		(4)		(1)		(8)		(1)		(62)
Recoveries	—		9		—		—		3		2		4		—		18
Net (charge-offs) recoveries	—		(39)		—		—		(1)		1		(4)		(1)		(44)

Allowance for credit losses – end of period	$	144	$	302	$	127	$	1	$	(9)	$	7	$	16	$	3	$	591


	Commercial Loans								Consumer Loans
	Real Estate, including Construction		Business and Corporate Banking		Global Banking		Other Comm'l		Residential Mortgages		Home Equity Mortgages		Credit Cards		Other Consumer		Total Loans
	(in millions)
Year Ended December 31, 2022
Allowance for credit losses – beginning of period	$	73	$	243	$	100	$	4	$	8	$	5	$	14	$	—	$	447


Provision charged (credited) to income	129		(8)		29		(3)		—		(6)		(2)		4		143
Charge-offs	(3)		(9)		(9)		—		(2)		(1)		(1)		(1)		(26)
Recoveries	1		4		—		—		5		4		5		1		20
Net (charge-offs) recoveries	(2)		(5)		(9)		—		3		3		4		—		(6)

Allowance for credit losses – end of period	$	200	$	230	$	120	$	1	$	11	$	2	$	16	$	4	$	584

Summary of Changes in the Liability for Off-balance Sheet Credit Exposures

The following table summarizes the changes in the liability for off-balance sheet credit exposures during the years ended December 31, 2024, 2023 and 2022:



Year Ended December 31,	2024		2023		2022
	(in millions)
Balance at beginning of period	$	111	$	117	$	103


Provision charged (credited) to income	28		(6)		14
Balance at end of period	$	139	$	111	$	117

Summary of Accrued Interest Receivables

The following table summarizes accrued interest receivables associated with financial assets carried at amortized cost and securities available-for-sale along with the related allowance for credit losses, which are reported net in other assets on the consolidated balance sheet. These accrued interest receivables are excluded from the amortized cost basis disclosures presented elsewhere in these financial statements, including Note 6, "Securities," and Note 7, "Loans."


At December 31,	2024		2023
	(in millions)
Accrued interest receivables:
Loans	$	249	$	259
Securities held-to-maturity	67		57
Other financial assets measured at amortized cost	25		19
Securities available-for-sale	117		87
Total accrued interest receivables	458		422
Allowance for credit losses	—		—
Accrued interest receivables, net	$	458	$	422