Morgan Stanley 2014 Annual Report Download - page 232

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Corporate Consumer
Residential
Real Estate
Wholesale
Real Estate Total
(dollars in millions)
Allowance for loan losses:
Balance at December 31, 2012 ................ $ 96 $ 3 $ 5 $ 2 $ 106
Gross charge-offs .......................... (13) — (2) — (15)
Gross recoveries ........................... — — — — —
Net charge-offs ........................ (13) — (2) — (15)
Provision (release) for loan losses(1) ........... 54 (2) 1 12 65
Balance at December 31, 2013 ................ $ 137 $ 1 $ 4 $ 14 $ 156
Allowance for loan losses by impairment methodology:
Inherent .............................. $ 126 $ 1 $ 4 $ 10 $ 141
Specific .............................. 11 — — 4 15
Total allowance for loan losses at
December 31, 2013 ............... $ 137 $ 1 $ 4 $ 14 $ 156
Loans evaluated by impairment methodology(2):
Inherent .............................. $13,194 $11,577 $ 9,995 $1,845 $36,611
Specific .............................. 69 — 11 10 90
Total loan evaluated at December 31,
2013 .......................... $13,263 $11,577 $10,006 $1,855 $36,701
Allowance for lending-related commitments:
Balance at December 31, 2012 ................ $ 91 $ — $ — $ 1 $ 92
Provision for lending-related commitments(3) .... 44 — — 1 45
Other .................................... (10) — — — (10)
Balance at December 31, 2013 ................ $ 125 $ — $ — $ 2 $ 127
Allowance for lending-related commitments by
impairment methodology:
Inherent .............................. $ 125 $ — $ — $ 2 $ 127
Specific .............................. — — — — —
Total allowance for lending-related
commitments at December 31,
2013 .......................... $ 125 $ — $ — $ 2 $ 127
Lending-related commitments evaluated by impairment
methodology(2):
Inherent .............................. $63,427 $ 2,151 $ 1,423 $ 207 $67,208
Specific .............................. — — — — —
Total lending-related commitments
evaluated at December 31, 2013 ..... $63,427 $ 2,151 $ 1,423 $ 207 $67,208
(1) The Company recorded a provision of $65 million for loan losses within Other revenues in 2013.
(2) Balances are gross of the allowance for loan losses.
(3) The Company recorded a provision of $45 million for lending-related commitments within Other non-interest expenses in 2013.
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