Citibank 2014 Annual Report Download - page 229

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16. ALLOWANCE FOR CREDIT LOSSES
In millions of dollars 2014 2013 2012
Allowance for loan losses at beginning of period $ 19,648 $25,455 $ 30,115
Gross credit losses (11,108) (12,769) (17,005)
Gross recoveries (1)(2)(3) 2,135 2,306 2,774
Net credit losses (NCLs) $ (8,973) $(10,463) $(14,231)
NCLs $ 8,973 $ 10,463 $ 14,231
Net reserve releases (1,879) (1,961) (1,908)
Net specific reserve releases (266) (898) (1,865)
Total provision for credit losses $ 6,828 $ 7,604 $ 10,458
Other, net (4) (1,509) (2,948) (887)
Allowance for loan losses at end of period $ 15,994 $ 19,648 $ 25,455
Allowance for credit losses on unfunded lending commitments at beginning of period (5) $ 1,229 $ 1,119 $ 1,136
Provision (release) for unfunded lending commitments (162) 80 (16)
Other, net (4) 30 (1)
Allowance for credit losses on unfunded lending commitments at end of period (5) $ 1,063 $ 1,229 $ 1,119
Total allowance for loans, leases, and unfunded lending commitments $ 17,057 $ 20,877 $ 26,574
(1) Recoveries have been reduced by certain collection costs that are incurred only if collection efforts are successful.
(2) 2012 includes approximately $635 million of incremental charge-offs related to OCC guidance issued in the third quarter of 2012 (see Note 1 to the Consolidated Financial Statements). There was a corresponding
approximately $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.
(3) 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 approximately $350 million reserve release in the first quarter of 2012 related to these charge-offs.
(4) 2014 includes reductions of approximately $1.1 billion related to the sale or transfer to held-for-sale (HFS) of various loan portfolios, which includes approximately $411 million related to the transfer of various
real estate loan portfolios to HFS, approximately $204 million related to the transfer to HFS of a business in Greece, approximately $177 million related to the transfer to HFS of a business in Spain, approximately
$29 million related to the transfer to HFS of a business in Honduras, and approximately $108 million related to the transfer to HFS of various EMEA loan portfolios. Additionally, 2014 includes a reduction of
approximately $463 million related to foreign currency translation. 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.
(5) Represents additional credit loss reserves for unfunded lending commitments and letters of credit recorded in Other liabilities on the Consolidated Balance Sheet.