Citibank 2012 Annual Report Download - page 229

207
Corporate loans are identified as impaired and placed on a cash
(non-accrual) basis when it is determined, based on actual experience and
a forward-looking assessment of the collectability of the loan in full, that
the payment of interest or principal is doubtful or when interest or principal
is 90 days past due, except when the loan is well collateralized and in the
process of collection. Any interest accrued on impaired Corporate loans
and leases is reversed at 90 days and charged against current earnings,
and interest is thereafter included in earnings only to the extent actually
received in cash. When there is doubt regarding the ultimate collectability
of principal, all cash receipts are thereafter applied to reduce the recorded
investment in the loan. While Corporate loans are generally managed based
on their internally assigned risk rating (see further discussion below), the
following tables present delinquency information by Corporate loan type as of
December 31, 2012 and 2011:
Corporate Loan Delinquency and Non-Accrual Details at December 31, 2012
In millions of dollars
30–89 days
past due
and accruing (1)
> 90 days
past due and
accruing (1)
Total past due
and accruing
Total
non-accrual (2)
Total
current (3)
Total
loans
Commercial and industrial $ 38 $ 10 $ 48 $1,078 $107,650 $108,776
Financial institutions 5 — 5 454 53,858 54,317
Mortgage and real estate 224 109 333 680 30,057 31,070
Leases 7 — 7 52 1,956 2,015
Other 70 6 76 69 46,414 46,559
Loans at fair value 4,056
Total $ 344 $125 $ 469 $2,333 $239,935 $246,793
(1) Corporate loans that are > 90 days past due are generally classified as non-accrual. Corporate loans are considered past due when principal or interest is contractually due but unpaid.
(2) Citi generally does not manage Corporate loans on a delinquency basis. Non-accrual loans generally include those loans that are > 90 days past due or those loans for which Citi believes, based on actual experience
and a forward-looking assessment of the collectability of the loan in full, that the payment of interest or principal is doubtful.
(3) Corporate loans are past due when principal or interest is contractually due but unpaid. Loans less than 30 days past due are presented as current.
Corporate Loan Delinquency and Non-Accrual Details at December 31, 2011
In millions of dollars
30–89 days
past due
and accruing (1)
> 90 days
past due and
accruing (1)
Total past due
and accruing
Total
non-accrual (2)
Total
current (3)
Total
loans
Commercial and industrial $ 93 $ 30 $ 123 $1,134 $ 98,157 $ 99,414
Financial institutions — 2 2 763 42,642 43,407
Mortgage and real estate 224 125 349 1,039 26,908 28,296
Leases 3 11 14 13 1,811 1,838
Other 225 15 240 287 46,481 47,008
Loans at fair value 3,939
Total $ 545 $183 $ 728 $3,236 $215,999 $223,902
(1) Corporate loans that are > 90 days past due are generally classified as non-accrual. Corporate loans are considered past due when principal or interest is contractually due but unpaid.
(2) Citi generally does not manage Corporate loans on a delinquency basis. Non-accrual loans generally include those loans that are ≥ 90 days past due or those loans for which Citi believes, based on actual experience
and a forward-looking assessment of the collectability of the loan in full, that the payment of interest or principal is doubtful.
(3) Corporate loans are past due when principal or interest is contractually due but unpaid. Loans less than 30 days past due are presented as current.