Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2015

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]


		At September 30, 2015						At December 31, 2014
Loans by Product Type		Loans Held for Investment		Loans Held for Sale		Total Loans(1)(2)		Loans Held for Investment		Loans Held for Sale		Total Loans(1)(2)
		(dollars in millions)
Corporate loans	$	22,519	$	8,509	$	31,028	$	19,659	$	8,200	$	27,859
Consumer loans		20,447		—		20,447		16,576		—		16,576
Residential real estate loans		19,640		121		19,761		15,735		114		15,849
Wholesale real estate loans		6,577		569		7,146		5,298		1,144		6,442
Total loans, gross of allowance for loan losses		69,183		9,199		78,382		57,268		9,458		66,726
Allowance for loan losses		(173)		—		(173)		(149)		—		(149)
Total loans, net of allowance for loan losses	$	69,010	$	9,199	$	78,209	$	57,119	$	9,458	$	66,577

______________

Amounts include loans that are made to non-U.S. borrowers of $7,455 million and $7,017 million at September 30, 2015 and December 31, 2014, respectively.
Loans at fixed interest rates and floating or adjustable interest rates were $7,280 million and $70,929 million, respectively, at September 30, 2015 and $6,663 million and $59,914 million, respectively, at December 31, 2014

Table of Credit Quality Indicators for Gross Loans Held-for-investment by Product Type


		At September 30, 2015
Loans by Credit Quality Indicators		Corporate		Consumer		Residential Real Estate		Wholesale Real Estate		Total
		(dollars in millions)
Pass	$	21,265	$	20,447	$	19,596	$	6,577	$	67,885
Special mention		786		—		—		—		786
Substandard		447		—		44		—		491
Doubtful		21		—		—		—		21
Total loans	$	22,519	$	20,447	$	19,640	$	6,577	$	69,183


		At December 31, 2014
Loans by Credit Quality Indicators		Corporate		Consumer		Residential Real Estate		Wholesale Real Estate		Total
		(dollars in millions)
Pass	$	17,847	$	16,576	$	15,688	$	5,298	$	55,409
Special mention		1,683		—		—		—		1,683
Substandard		127		—		47		—		174
Doubtful		2		—		—		—		2
Total loans	$	19,659	$	16,576	$	15,735	$	5,298	$	57,268

Table of Impaired Loans, Past Due Loans and Allowance for Held-for-investment Loans


		At September 30, 2015						At December 31, 2014
Loans by Product Type		Corporate		Residential Real Estate		Total		Corporate		Residential Real Estate		Total
	(dollars in millions)
Impaired loans with allowance	$	17	$	—	$	17	$	—	$	—	$	—
Impaired loans without allowance(1)		76		25		101		2		17		19
Impaired loans unpaid principal balance		93		25		118		2		17		19
Past due 90 days loans and on nonaccrual		53		28		81		2		25		27

(1) At September 30, 2015 and December 31, 2014, no allowance was outstanding for these loans as the present value of the expected future cash flows (or alternatively, the observable market price of the loan or the fair value of the collateral held) exceeded or equaled the carrying value.


		At September 30, 2015								At December 31, 2014
Loans by Region		Americas		EMEA		Asia-Pacific		Total		Americas		EMEA		Asia-Pacific		Total
	(dollars in millions)
Impaired loans	$	101	$	17	$	—	$	118	$	19	$	—	$	—	$	19
Past due 90 days loans and on nonaccrual		81		—		—		81		27		—		—		27
Allowance for loan losses		140		28		5		173		121		20		8		149

EMEA—Europe, Middle East and Africa.

Loan and Lending-related Commitments by Impairment Methodology, and Their Respective Allowances

			Corporate		Consumer		Residential Real Estate		Wholesale Real Estate
			Corporate		Consumer		Residential Real Estate		Wholesale Real Estate		Total
			(dollars in millions)
Allowance for loan losses:
	Balance at December 31, 2014	$	118	$	2	$	8	$	21	$	149
	Gross charge-offs		—		—		(1)		—		(1)
	Gross recoveries		1		—		—		—		1
	Net recoveries/(charge-offs)		1		—		(1)		—		—
	Provision for loan losses(1)		31		—		3		1		35
	Other(2)		(11)		—		—		—		(11)
	Balance at September 30, 2015	$	139	$	2	$	10	$	22	$	173

Allowance for loan losses by impairment methodology:
	Inherent	$	134	$	2	$	10	$	22	$	168
	Specific		5		—		—		—		5
	Total allowance for loan losses at September 30, 2015	$	139	$	2	$	10	$	22	$	173

Loans evaluated by impairment methodology(3):
	Inherent	$	22,426	$	20,447	$	19,615	$	6,577	$	69,065
	Specific		93		—		25		—		118
	Total loans evaluated at September 30, 2015	$	22,519	$	20,447	$	19,640	$	6,577	$	69,183

Allowance for lending commitments:
	Balance at December 31, 2014	$	147	$	—	$	—	$	2	$	149
	Provision for lending commitments(4)		11		—		—		1		12
	Balance at September 30, 2015	$	158	$	—	$	—	$	3	$	161

Allowance for lending commitments by
	impairment methodology:
	Inherent	$	158	$	—	$	—	$	3	$	161
	Specific		—		—		—		—		—
	Total allowance for lending commitments
	at September 30, 2015	$	158	$	—	$	—	$	3	$	161

Lending commitments evaluated by
	impairment methodology(3):
	Inherent	$	65,627	$	4,587	$	310	$	446	$	70,970
	Specific		128		—		—		—		128
	Total lending commitments evaluated
	at September 30, 2015	$	65,755	$	4,587	$	310	$	446	$	71,098

			Corporate		Consumer		Residential Real Estate		Wholesale Real Estate
			Corporate		Consumer		Residential Real Estate		Wholesale Real Estate		Total
			(dollars in millions)
Allowance for loan losses:
	Balance at December 31, 2013	$	137	$	1	$	4	$	14	$	156
	Gross charge-offs		—		—		—		(3)		(3)
	Gross recoveries		—		—		—		1		1
	Net charge-offs		—		—		—		(2)		(2)
	Provision (release) for loan losses(1)		(20)		1		3		3		(13)
	Balance at September 30, 2014	$	117	$	2	$	7	$	15	$	141

Allowance for loan losses by impairment methodology:
	Inherent	$	115	$	2	$	7	$	15	$	139
	Specific		2		—		—		—		2
	Total allowance for loan losses at September 30, 2014	$	117	$	2	$	7	$	15	$	141

Loans evaluated by impairment methodology(3):
	Inherent	$	18,575	$	15,389	$	14,169	$	3,430	$	51,563
	Specific		14		—		29		—		43
	Total loan evaluated at September 30, 2014	$	18,589	$	15,389	$	14,198	$	3,430	$	51,606

Allowance for lending commitments:
	Balance at December 31, 2013	$	125	$	—	$	—	$	2	$	127
	Provision for lending commitments(4)		14		—		—		—		14
	Balance at September 30, 2014	$	139	$	—	$	—	$	2	$	141

Allowance for lending commitments by
	impairment methodology:
	Inherent	$	139	$	—	$	—	$	2	$	141
	Specific		—		—		—		—		—
	Total allowance for lending commitments
	at September 30, 2014	$	139	$	—	$	—	$	2	$	141

Lending commitments evaluated by
	impairment methodology(3):
	Inherent	$	63,702	$	4,354	$	269	$	288	$	68,613
	Specific		53		—		—		—		53
	Total lending commitments evaluated
	at September 30, 2014	$	63,755	$	4,354	$	269	$	288	$	68,666

_______________

(1) The Company recorded provisions of $5 million and $2 million for loan losses within Other revenues for the quarters ended September 30, 2015 and 2014, respectively.

(2) Amount includes the impact related to the transfer to loans held for sale and foreign currency translation adjustments.

(3) Loan balances are gross of the allowance for loan losses and lending commitments are gross of credit losses.

(4) The Company recorded a provision of $4 million and a release of $16 million for lending commitments within Other non-interest expenses for the quarters ended September 30, 2015 and 2014, respectively.