Citibank 2008 Annual Report Download - page 60

DETAILS OF CREDIT LOSS EXPERIENCE
In millions of dollars at year end 2008 2007 2006 2005 2004
Allowance for loan losses at beginning of year $16,117 $ 8,940 $ 9,782 $11,269 $12,643
Provision for loan losses
Consumer $28,282 $15,599 $ 6,224 $ 7,149 $ 7,205
Corporate 5,392 1,233 96 (295) (972)
$33,674 $16,832 $ 6,320 $ 6,854 $ 6,233
Gross credit losses
Consumer (1)
In U.S. offices $11,676 $ 5,766 $ 4,413 $ 5,829 $ 6,937
In offices outside the U.S. 7,172 5,150 3,915 2,964 3,304
Corporate
Mortgage and real estate
In U.S. offices 4————
In offices outside the U.S. 37 31—6
Governments and official institutions outside the U.S. 3————
Loans to financial institutions
In U.S. offices —————
In offices outside the U.S. 463 69 6 10 3
Commercial and industrial
In U.S. offices 637 635 85 78 52
In offices outside the U.S. 778 241 220 287 571
$20,770 $11,864 $ 8,640 $ 9,168 $10,873
Credit recoveries
Consumer (1)
In U.S. offices $ 585 $ 695 $ 650 $ 1,007 $ 1,079
In offices outside the U.S. 1,015 966 897 693 691
Corporate
Mortgage and real estate
In U.S. offices —31——
In offices outside the U.S. 1—18 5 3
Governments and official institutions outside the U.S. —4 7 55 1
Loans to financial institutions
In U.S. offices ———— 6
In offices outside the U.S. 21 4 15 35
Commercial and industrial
In U.S. offices 649 20 104 100
In offices outside the U.S. 140 220 182 473 357
$ 1,749 $ 1,938 $ 1,779 $ 2,352 $ 2,272
Net credit losses
In U.S. offices $11,726 $ 5,654 $ 3,827 $ 4,796 $ 5,804
In offices outside the U.S. 7,295 4,272 3,034 2,020 2,797
Total $19,021 $ 9,926 $ 6,861 $ 6,816 $ 8,601
Other—net (2) $ (1,154) $ 271 $ (301) $ (1,525) $ 994
Allowance for loan losses at end of year $29,616 $16,117 $ 8,940 $ 9,782 $11,269
Allowance for unfunded lending commitments (3) $ 887 $ 1,250 $ 1,100 $ 850 $ 600
Total allowance for loans, leases and unfunded lending commitments $30,503 $17,367 $10,040 $10,632 $11,869
Net consumer credit losses $17,248 $ 9,255 $ 6,781 $ 7,093 $ 8,471
As a percentage of average consumer loans 3.13% 1.79% 1.52% 1.76% 2.13%
Net corporate credit losses/(recoveries) $ 1,773 $ 671 $ 80 $ (277) $ 130
As a percentage of average corporate loans 0.96% 0.36% 0.05% NM 0.11%
(1) Consumer credit losses primarily relate to U.S. mortgages, revolving credit and installment loans. Recoveries primarily relate to revolving credit and installment loans.
(2) 2008 primarily includes reductions to the loan loss reserve of approximately $800 million related to FX translation, $102 million related to securitizations, $244 million for the sale of the German retail banking operation,
$156 million for the sale of CitiCapital, partially offset by additions of $106 million related to the Cuscatlán and Bank of the Overseas Chinese acquisitions. 2007 primarily includes reductions to the loan loss reserve of
$475 million related to securitizations and transfers to loans held-for-sale, and reductions of $83 million related to the transfer of the U.K. CitiFinancial portfolio to held-for-sale, offset by additions of $610 million related
to the acquisitions of Egg, Nikko Cordial, Grupo Cuscatlán and Grupo Financiero Uno. 2006 primarily includes reductions to the loan-loss reserve of $429 million related to securitizations and portfolio sales and the
addition of $84 million related to the acquisition of the CrediCard portfolio. 2005 primarily includes reductions to the loan-loss reserve of $584 million related to securitizations and portfolio sales, a reduction of $110
million related to purchase accounting adjustments from the KorAm acquisition, and a reduction of $90 million from the sale of CitiCapital’s transportation portfolio. 2004 primarily includes the addition of $715 million
of loan-loss reserves related to the acquisition of KorAm and the addition of $148 million of loan-loss reserves related to the acquisition of Washington Mutual Finance Corporation.
(3) Represents additional credit-loss reserves for unfunded corporate lending commitments and letters of credit recorded with Other liabilities on the Consolidated Balance Sheet.
NM Not meaningful.
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