Citibank 2013 Annual Report Download - page 239

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Corporate Loans
Corporate loans represent loans and leases managed by the Institutional
Clients Group in Citicorp or, to a much lesser extent, in Citi Holdings.
The following table presents information by Corporate loan type as of
December 31, 2013 and 2012:
In millions of dollars
December 31,
2013
December 31,
2012
Corporate
In U.S. offices
Commercial and industrial $ 32,704 $ 26,985
Financial institutions 25,102 18,159
Mortgage and real estate (1) 29,425 24,705
Installment, revolving credit and other 34,434 32,446
Lease financing 1,647 1,410
$123,312 $103,705
In offices outside the U.S.
Commercial and industrial $ 82,663 $ 82,939
Financial institutions 38,372 37,739
Mortgage and real estate (1) 6,274 6,485
Installment, revolving credit and other 18,714 14,958
Lease financing 527 605
Governments and official institutions 2,341 1,159
$148,891 $143,885
Total Corporate loans $272,203 $247,590
Net unearned income (562) (797)
Corporate loans, net of unearned income $271,641 $246,793
(1) Loans secured primarily by real estate.
The Company sold and/or reclassified (to held-for-sale) $5.8 billion and
$4.4 billion of Corporate loans for the years ended December 31, 2013 and
2012, respectively.
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,
2013 and December 31, 2012:
Corporate Loan Delinquency and Non-Accrual Details at December 31, 2013
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 $ 72 $ 5 $ 77 $ 769 $112,985 $113,831
Financial institutions — — — 365 61,704 62,069
Mortgage and real estate 183 175 358 515 34,027 34,900
Leases 9 1 10 189 1,975 2,174
Other 47 2 49 70 54,476 54,595
Loans at fair value 4,072
Total $ 311 $183 $ 494 $1,908 $265,167 $271,641
(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.