Citibank 2014 Annual Report Download - page 94

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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 summary provides a general
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 generally based on aging, i.e., the
borrower has fallen behind in payments.
•฀฀Mortgage loans in regulated bank entities discharged through Chapter 7
bankruptcy, other than Federal Housing Administration (FHA) insured
loans, are classified as non-accrual. Non-bank mortgage loans discharged
through Chapter 7 bankruptcy are classified as non-accrual at 90 days or
more past due. In addition, home equity loans in regulated bank entities
are classified as non-accrual if the related residential first mortgage loan
is 90 days or more past due.
•฀ North America Citi-branded cards and Citi retail services are not included
because under industry standards, credit card loans accrue interest
until such loans are charged off, which typically occurs at 180 days
contractual delinquency.
Renegotiated Loans:
•฀฀Includes฀both฀corporate฀and฀consumer฀loans฀whose฀terms฀have฀been฀
modified in a troubled debt restructuring (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 may still be current on interest payments. In
situations where Citi reasonably expects that only a portion of the principal
owed will ultimately be collected, all payments received are reflected as a
reduction of principal and not as interest income. For all other non-accrual
loans, cash interest receipts are generally recorded as revenue.
Non-Accrual Loans
December 31,
In millions of dollars 2014 2013 2012 2011 2010
Citicorp $3,062 $3,791 $ 4,096 $ 4,018 $ 4,909
Citi Holdings 4,045 5,212 7,434 7,050 14,498
Total non-accrual loans $7,107 $9,003 $11,530 $11,068 $19,407
Corporate non-accrual loans (1)
North America $ 321 $ 736 $ 735 $ 1,246 $ 2,112
EMEA 267 766 1,131 1,293 5,337
Latin America 416 127 128 362 701
Asia 179 279 339 335 470
Total Corporate non-accrual loans $1,183 $1,908 $ 2,333 $ 3,236 $ 8,620
Citicorp $1,126 $1,580 $ 1,909 $ 2,217 $ 3,091
Citi Holdings 57 328 424 1,019 5,529
Total Corporate non-accrual loans $1,183 $1,908 $ 2,333 $ 3,236 $ 8,620
Consumer non-accrual loans (1)
North America $4,412 $5,238 $ 7,149 $ 5,888 $ 8,540
EMEA 32 138 380 387 652
Latin America 1,188 1,426 1,285 1,107 1,019
Asia 292 293 383 450 576
Total Consumer non-accrual loans $5,924 $7,095 $ 9,197 $ 7,832 $10,787
Citicorp $1,936 $2,211 $ 2,187 $ 1,801 $ 1,818
Citi Holdings 3,988 4,884 7,010 6,031 8,969
Total Consumer non-accrual loans $5,924 $7,095 $ 9,197 $ 7,832 $10,787
(1) Excludes purchased distressed loans, as they are generally accreting interest. The carrying value of these loans was $421 million at December 31, 2014, $703 million at December 31, 2013, $537 million at
December 31, 2012, $511 million at December 31, 2011, and $469 million at December 31, 2010.