Citibank 2013 Annual Report Download - page 245

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16. ALLOWANCE FOR CREDIT LOSSES
In millions of dollars 2013 2012 2011
Allowance for loan losses at beginning of year $ 25,455 $30,115 $ 40,655
Gross credit losses (1)(2) (12,769) (17,005) (22,699)
Gross recoveries 2,306 2,774 3,012
Net credit losses (NCLs) $(10,463) $(14,231) $(19,687)
NCLs $ 10,463 $ 14,231 $ 19,687
Net reserve builds (releases) (1) (1,961) (1,908) (8,525)
Net specific reserve builds (releases) (2) (898) (1,865) 174
Total provision for credit losses $ 7,604 $ 10,458 $ 11,336
Other, net (3) (2,948) (887) (2,189)
Allowance for loan losses at end of year $ 19,648 $ 25,455 $ 30,115
Allowance for credit losses on unfunded lending commitments at beginning of year (4) $ 1,119 $ 1,136 $ 1,066
Provision for unfunded lending commitments 80 (16) 51
Other, net 30 (1) 19
Allowance for credit losses on unfunded lending commitments at end of year (4) $ 1,229 $ 1,119 $ 1,136
Total allowance for loans, leases, and unfunded lending commitments $ 20,877 $ 26,574 $ 31,251
(1) 2012 includes approximately $635 million of incremental charge-offs related to OCC guidance issued in the third quarter of 2012, which required mortgage loans to borrowers that have gone through Chapter 7 of the
U.S. Bankruptcy Code to be written down to collateral value. There was a corresponding approximate $600 million release in the third quarter of 2012 allowance for loan losses related to these charge-offs. 2012 also
includes a benefit to charge-offs of approximately $40 million related to finalizing the impact of this OCC guidance in the fourth quarter of 2012.
(2) 2012 includes approximately $370 million of incremental charge-offs related to previously deferred principal balances on modified loans in the first quarter of 2012. These charge-offs were related to anticipated
forgiveness of principal in connection with the national mortgage settlement. There was a corresponding approximate $350 million reserve release in the first quarter of 2012 related to these charge-offs.
(3) 2013 includes reductions of approximately $2.4 billion related to the sale or transfer to held-for-sale of various loan portfolios, which includes approximately $360 million related to the sale of Credicard and
approximately $255 million related to a transfer to held-for-sale of a loan portfolio in Greece, approximately $230 million related to a non-provision transfer of reserves associated with deferred interest to other assets
which includes deferred interest and approximately $220 million related to foreign currency translation. 2012 includes reductions of approximately $875 million related to the sale or transfer to held-for-sale of various
U.S. loan portfolios. 2011 includes reductions of approximately $1.6 billion related to the sale or transfer to held-for-sale of various U.S. loan portfolios, approximately $240 million related to the sale of the Egg Banking
PLC credit card business, approximately $72 million related to the transfer of the Citi Belgium business to held-for-sale and approximately $290 million related to foreign exchange translation.
(4) Represents additional credit loss reserves for unfunded lending commitments and letters of credit recorded in Other liabilities on the Consolidated Balance Sheet.