Citibank 2011 Annual Report Download - page 93

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Non-Accrual Loans and Assets and Renegotiated Loans
The following pages include information on Citi’s “Non-Accrual Loans and
Assets” and “Renegotiated Loans.” There is a certain amount of overlap
among these categories. The following general summary provides a basic
description of each category:
Non-Accrual Loans and Assets:
฀ Corporate and Consumer (commercial market) non-accrual status
is based on the determination that payment of interest or principal
is doubtful.
฀ Consumer non-accrual status is based on aging, i.e., the borrower has
fallen behind in payments.
฀ North America Citi-branded and retail partner cards are not included
because, under industry standards, they accrue interest until charge-off.
Renegotiated Loans:
฀ Both Corporate and Consumer loans whose terms have been modified in
a TDR.
฀ Includes both accrual and non-accrual TDRs.
Non-Accrual Loans and Assets
The table below summarizes Citigroup’s non-accrual loans as of the periods
indicated. Non-accrual loans are loans in which the borrower has fallen
behind in interest payments or, for Corporate and Consumer (commercial
market) loans, where Citi has determined that the payment of interest
or principal is doubtful and which are therefore considered impaired. In
situations where Citi reasonably expects that only a portion of the principal
and/or interest owed will ultimately be collected, all payments received are
reflected as a reduction of principal and not as interest income. There is no
industry-wide definition of non-accrual assets, however, and as such, analysis
across the industry is not always comparable.
Corporate non-accrual loans may still be current on interest payments but
are considered non-accrual as Citi has determined that the future payment
of interest and/or principal is doubtful. Consistent with industry conventions,
Citi generally accrues interest on credit card loans until such loans are
charged-off, which typically occurs at 180 days contractual delinquency. As
such, the non-accrual loan disclosures in this section do not include North
America credit card loans.
Non-Accrual Loans
In millions of dollars 2011    
Citicorp $ 4,018        
Citi Holdings 7,208    
Total non-accrual loans (NAL) $11,226     
Corporate non-accrual loans (1) æææ
North America $ 1,246        
EMEA 1,293    
Latin America 362    
Asia 335    
Total corporate non-accrual loans $ 3,236       
#ITICORPæ $ 2,217        
#ITIæ(OLDINGSæ 1,019    
Total corporate non-accrual loans $ 3,236       
Consumer non-accrual loans (1) æææ
North America $ 6,046       
EMEA 387    
Latin America 1,107    
Asia 450    
Total consumer non-accrual loans $ 7,990     
#ITICORPæ $ 1,801        
#ITIæ(OLDINGSæ 6,189    
Total consumer non-accrual loans $ 7,990     
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