Morgan Stanley 2014 Annual Report Download - page 231

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The table below summarizes information about the allowance for loan losses, loans by impairment methodology,
the allowance for lending-related commitments and lending-related commitments by impairment methodology.
Corporate Consumer
Residential
Real Estate
Wholesale
Real Estate Total
(dollars in millions)
Allowance for loan losses:
Balance at December 31, 2013 ................ $ 137 $ 1 $ 4 $ 14 $ 156
Gross charge-offs .......................... (3) — — (3) (6)
Gross recoveries ........................... — — — 1 1
Net charge-offs ........................ (3) — — (2) (5)
Provision (release) for loan losses(1) ........... (13) 1 4 9 1
Other .................................... (3) — — — (3)
Balance at December 31, 2014 ................ $ 118 $ 2 $ 8 $ 21 $ 149
Allowance for loan losses by impairment methodology:
Inherent .............................. $ 118 $ 2 $ 8 $ 21 $ 149
Specific .............................. — — — — —
Total allowance for loan losses at
December 31, 2014 ............... $ 118 $ 2 $ 8 $ 21 $ 149
Loans evaluated by impairment methodology(2):
Inherent .............................. $19,657 $16,576 $15,718 $5,298 $57,249
Specific .............................. 2 — 17 — 19
Total loans evaluated at December 31,
2014 .......................... $19,659 $16,576 $15,735 $5,298 $57,268
Allowance for lending-related commitments:
Balance at December 31, 2013 ................ $ 125 $ — $ — $ 2 $ 127
Provision for lending-related commitments(3) .... 22 — — — 22
Balance at December 31, 2014 ................ $ 147 $ — $ — $ 2 $ 149
Allowance for lending-related commitments by
impairment methodology:
Inherent .............................. $ 147 $ — $ — $ 2 $ 149
Specific .............................. — — — — —
Total allowance for lending-related
commitments at December 31,
2014 .......................... $ 147 $ — $ — $ 2 $ 149
Lending-related commitments evaluated by impairment
methodology(2):
Inherent .............................. $65,987 $ 3,484 $ 283 $ 367 $70,121
Specific .............................. 26 — — — 26
Total lending-related commitments
evaluated at December 31, 2014 ..... $66,013 $ 3,484 $ 283 $ 367 $70,147
(1) The Company recorded a provision of $1 million for loan losses within Other revenues in 2014.
(2) Balances are gross of the allowance for loan losses.
(3) The Company recorded a provision of $22 million for lending-related commitments within Other non-interest expenses in 2014.
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