| ALLOWANCE FOR CREDIT LOSSES |
ALLOWANCE FOR CREDIT LOSSES The following tables summarize Citi’s allowance for credit losses for the three and six months ended June 30, 2026 and 2025:
| | | | | | | | | | | | | | | | Three Months Ended June 30, | Six Months Ended June 30, | | In millions of dollars | 2026 | 2025 | 2026 | 2025 | | Allowance for credit losses on loans (ACLL) at beginning of period | $ | 19,636 | | $ | 18,726 | | $ | 19,247 | | $ | 18,574 | | | | | | | | | | | | | | | | | | | | | | | Gross credit losses on loans | (2,981) | | (2,723) | | (5,801) | | (5,649) | | | Gross recoveries on loans | 577 | | 489 | | 1,189 | | 956 | | | Net credit losses (NCLs) on loans | $ | (2,404) | | $ | (2,234) | | $ | (4,612) | | $ | (4,693) | | | Replenishment of NCLs | $ | 2,404 | | $ | 2,234 | | $ | 4,612 | | $ | 4,693 | | | Net reserve builds (releases) for loans | 312 | | 249 | | 613 | | 476 | | | Net specific reserve builds (releases) for loans | (113) | | (6) | | (17) | | (131) | | | Total provision for credit losses on loans (PCLL) | $ | 2,603 | | $ | 2,477 | | $ | 5,208 | | $ | 5,038 | | Initial allowance for credit losses on newly purchased credit-deteriorated assets during the period(1) | 78 | | — | | 78 | | — | | | Other, net (see table below) | 48 | | 154 | | 40 | | 204 | | | ACLL at end of period | $ | 19,961 | | $ | 19,123 | | $ | 19,961 | | $ | 19,123 | | Allowance for credit losses on unfunded lending commitments (ACLUC) at beginning of period(2) | $ | 2,013 | | $ | 1,720 | | $ | 1,833 | | $ | 1,601 | | | | | | | Provision (release) for credit losses on ACLUC(3) | (97) | | (19) | | 87 | | 89 | | Other, net | (17) | | 20 | | (21) | | 31 | | ACLUC at end of period(2) | $ | 1,899 | | $ | 1,721 | | $ | 1,899 | | $ | 1,721 | | | Total ACLL and ACLUC | $ | 21,860 | | $ | 20,844 | | $ | 21,860 | | $ | 20,844 | | Allowance for credit losses on other assets at beginning of period(4) | $ | 186 | | $ | 2,206 | | $ | 147 | | $ | 1,865 | | | | | | | | NCLs on other assets | (5) | | (5) | | (8) | | (18) | | | Provision (release) for credit losses on other assets | (2) | | 381 | | 31 | | 420 | | Other, net(5) | (5) | | 117 | | 4 | | 432 | | Allowance for credit losses on other assets at end of period(4) | $ | 174 | | $ | 2,699 | | $ | 174 | | $ | 2,699 | | | Allowance for credit losses on HTM debt securities at beginning of period | $ | 116 | | $ | 130 | | $ | 146 | | $ | 137 | | | | | | | | Provision (release) for credit losses on HTM debt securities | 1 | | 7 | | (29) | | 2 | | Other, net | — | | (1) | | — | | (3) | | | Allowance for credit losses on HTM debt securities at end of period | $ | 117 | | $ | 136 | | $ | 117 | | $ | 136 | | | Total ACL | $ | 22,151 | | $ | 23,679 | | $ | 22,151 | | $ | 23,679 | |
| | | | | | | | | | | | | | | | Other, net details (ACLL) | Three Months Ended June 30, | Six Months Ended June 30, | | In millions of dollars | 2026 | 2025 | 2026 | 2025 | | | | | | | | | | | | | | | | | Reclasses of consumer ACLL to HFS | $ | — | | $ | (29) | | $ | — | | $ | (29) | | | FX translation and other | 48 | | 183 | | 40 | | 233 | | | Other, net (ACLL) | $ | 48 | | $ | 154 | | $ | 40 | | $ | 204 | |
(1)Upon acquisition, the par value of the purchased credit-deteriorated assets was approximately $120 million during the three and six months ended June 30, 2026. (2)Represents additional credit loss reserves for unfunded lending commitments and letters of credit recorded in Other liabilities on the Consolidated Balance Sheet. (3)The first quarter of 2026 includes a reserve build related to Citi’s forward purchase commitment of the additional American Airlines co-branded card portfolio. This was released from unfunded lending commitments in the second quarter of 2026 and re-established as a reserve for the loans that were acquired. (4)See additional details on the Allowance for credit losses on other assets below. (5)Primarily reflects the impact of FX translation on the ACL on Other assets for transfer risk associated with exposures outside the U.S. Allowance for Credit Losses on Loans (ACLL) and End-of-Period Loans
| | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | June 30, 2026 | June 30, 2025 | | In millions of dollars | Corporate | Consumer | Total | Corporate | Consumer | Total | | ACLL at beginning of period | $ | 3,339 | | $ | 16,297 | | $ | 19,636 | | $ | 2,725 | | $ | 16,001 | | $ | 18,726 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Charge-offs | (153) | | (2,828) | | (2,981) | | (63) | | (2,660) | | (2,723) | | | Recoveries | 19 | | 558 | | 577 | | 14 | | 475 | | 489 | | | Replenishment of NCLs | 134 | | 2,270 | | 2,404 | | 49 | | 2,185 | | 2,234 | | | Net reserve builds (releases) | 220 | | 92 | | 312 | | 265 | | (16) | | 249 | | | Net specific reserve builds (releases) | (112) | | (1) | | (113) | | (6) | | — | | (6) | | Initial allowance for credit losses on newly purchased credit-deteriorated assets during the period(1) | — | | 78 | | 78 | | — | | — | | — | | | Other | 4 | | 44 | | 48 | | 39 | | 115 | | 154 | | | Ending balance | $ | 3,451 | | $ | 16,510 | | $ | 19,961 | | $ | 3,023 | | $ | 16,100 | | $ | 19,123 | | | | | | | | | | Six Months Ended | | June 30, 2026 | June 30, 2025 | | In millions of dollars | Corporate | Consumer | Total | Corporate | Consumer | Total | | ACLL at beginning of period | $ | 3,053 | | $ | 16,194 | | $ | 19,247 | | $ | 2,556 | | $ | 16,018 | | $ | 18,574 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Charge-offs | (195) | | (5,606) | | (5,801) | | (262) | | (5,387) | | (5,649) | | | Recoveries | 53 | | 1,136 | | 1,189 | | 31 | | 925 | | 956 | | | Replenishment of NCLs | 142 | | 4,470 | | 4,612 | | 231 | | 4,462 | | 4,693 | | | Net reserve builds (releases) | 423 | | 190 | | 613 | | 544 | | (68) | | 476 | | | Net specific reserve builds (releases) | (16) | | (1) | | (17) | | (131) | | — | | (131) | | Initial allowance for credit losses on newly purchased credit-deteriorated assets during the period(1) | — | | 78 | | 78 | | — | | — | | — | | | Other | (9) | | 49 | | 40 | | 54 | | 150 | | 204 | | | Ending balance | $ | 3,451 | | $ | 16,510 | | $ | 19,961 | | $ | 3,023 | | $ | 16,100 | | $ | 19,123 | |
(1)Upon acquisition, the par value of the purchased credit-deteriorated assets was approximately $120 million during the three and six months ended June 30, 2026.
| | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | December 31, 2025 | | In millions of dollars | Corporate | Consumer | Total | Corporate | Consumer | Total | | ACLL | | | | | | | | Collectively evaluated | $ | 3,143 | | $ | 16,396 | | $ | 19,539 | | $ | 2,730 | | $ | 16,144 | | $ | 18,874 | | | Individually evaluated | 308 | | 50 | | 358 | | 323 | | 51 | | 374 | | | Purchased credit deteriorated | — | | 64 | | 64 | | — | | (1) | | (1) | | | Total ACLL | $ | 3,451 | | $ | 16,510 | | $ | 19,961 | | $ | 3,053 | | $ | 16,194 | | $ | 19,247 | | | Loans, net of unearned income | | | | | | | | Collectively evaluated | $ | 367,187 | | $ | 416,256 | | $ | 783,443 | | $ | 334,892 | | $ | 408,225 | | $ | 743,117 | | | Individually evaluated | 1,747 | | 59 | | 1,806 | | 2,001 | | 149 | | 2,150 | | | Purchased credit deteriorated | — | | 179 | | 179 | | — | | 108 | | 108 | | | Held at fair value | 8,204 | | 26 | | 8,230 | | 6,804 | | 51 | | 6,855 | | | Total loans, net of unearned income | $ | 377,138 | | $ | 416,520 | | $ | 793,658 | | $ | 343,697 | | $ | 408,533 | | $ | 752,230 | |
Changes in the ACL (June 30, 2026 vs. December 31, 2025) The total allowance for credit losses on loans, leases, unfunded lending commitments, other assets and HTM debt securities (in aggregate, total ACL) as of June 30, 2026 was $22,151 million, an increase of $778 million from $21,373 million at December 31, 2025, driven by increased uncertainty in the macroeconomic outlook, portfolio growth and the acquisition of the additional American Airlines co-branded card portfolio, partially offset by refinements to loss assumptions.
Consumer ACLL Citi’s total consumer allowance for credit losses on loans (ACLL) as of June 30, 2026 was $16,510 million, an increase of $316 million from $16,194 million at December 31, 2025. The increase was driven by the acquisition of the additional American Airlines co-branded card portfolio, uncertainty and deterioration in the macroeconomic outlook and changes in portfolio quality, including seasonal changes, largely offset by refinements to loss assumptions and lower volume. Corporate ACLL Citi’s total corporate ACLL as of June 30, 2026 was $3,451 million, an increase of $398 million from $3,053 million at December 31, 2025. The increase was driven by uncertainty in the macroeconomic outlook and exposure growth.
ACLUC As of June 30, 2026, Citi’s total allowance for unfunded lending commitments (ACLUC), included in Other liabilities, was $1,899 million, an increase of $66 million from $1,833 million at December 31, 2025. The increase was driven by exposure growth and uncertainty in the macroeconomic outlook, largely offset by refinements to loss assumptions.
Allowance for Credit Losses on Other Assets
| | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | | In millions of dollars | | Deposits with banks | Securities borrowed and purchased under agreements
to resell | | All other assets(1) | Total | | Allowance for credit losses on other assets at beginning of quarter | | $ | 32 | | $ | 5 | | | $ | 149 | | $ | 186 | | | | | | | | | | Gross credit losses | | — | | — | | | (12) | | (12) | | | Gross recoveries | | — | | — | | | 7 | | 7 | | | Net credit losses (NCLs) | | $ | — | | $ | — | | | $ | (5) | | $ | (5) | | | Replenishment of NCLs | | $ | — | | $ | — | | | $ | 5 | | $ | 5 | | | Net reserve builds (releases) | | (14) | | (2) | | | 9 | | (7) | | | Total provision for credit losses | | $ | (14) | | $ | (2) | | | $ | 14 | | $ | (2) | | | Other, net | | $ | — | | $ | — | | | $ | (5) | | $ | (5) | | | Allowance for credit losses on other assets at end of quarter | | $ | 18 | | $ | 3 | | | $ | 153 | | $ | 174 | | | | | | | | | | | Six Months Ended June 30, 2026 | | In millions of dollars | | Deposits with banks | Securities borrowed and purchased under agreements
to resell | | All other assets(1) | Total | | Allowance for credit losses on other assets at beginning of year | | $ | 23 | | $ | 5 | | | $ | 119 | | $ | 147 | | | | | | | | | | Gross credit losses | | — | | — | | | (22) | | (22) | | | Gross recoveries | | — | | — | | | 14 | | 14 | | | Net credit losses (NCLs) | | $ | — | | $ | — | | | $ | (8) | | $ | (8) | | | Replenishment of NCLs | | $ | — | | $ | — | | | $ | 8 | | $ | 8 | | | Net reserve builds (releases) | | (6) | | (2) | | | 31 | | 23 | | | Total provision for credit losses | | $ | (6) | | $ | (2) | | | $ | 39 | | $ | 31 | | Other, net | | $ | 1 | | $ | — | | | $ | 3 | | $ | 4 | | | Allowance for credit losses on other assets at end of quarter | | $ | 18 | | $ | 3 | | | $ | 153 | | $ | 174 | |
(1)Primarily ACL related to transfer risk associated with exposures outside the U.S. | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | In millions of dollars | | Deposits with banks | Securities borrowed and purchased under agreements
to resell | | All other assets(1) | Total | | Allowance for credit losses on other assets at beginning of quarter | | $ | 19 | | $ | 4 | | | $ | 2,183 | | $ | 2,206 | | | Gross credit losses | | — | | — | | | (14) | | (14) | | | Gross recoveries | | — | | — | | | 9 | | 9 | | | Net credit losses (NCLs) | | $ | — | | $ | — | | | $ | (5) | | $ | (5) | | | Replenishment of NCLs | | $ | — | | $ | — | | | $ | 5 | | $ | 5 | | | Net reserve builds (releases) | | 21 | | 6 | | | 349 | | 376 | | | Total provision for credit losses | | $ | 21 | | $ | 6 | | | $ | 354 | | $ | 381 | | | Other, net | | $ | — | | $ | — | | | $ | 117 | | $ | 117 | | | Allowance for credit losses on other assets at end of quarter | | $ | 40 | | $ | 10 | | | $ | 2,649 | | $ | 2,699 | | | | | | | | | | | Six Months Ended June 30, 2025 | | In millions of dollars | | Deposits with banks | Securities borrowed and purchased under agreements
to resell | | All other assets(1) | Total | | Allowance for credit losses on other assets at beginning of year | | $ | 25 | | $ | 3 | | | $ | 1,837 | | $ | 1,865 | | | Gross credit losses | | — | | — | | | (31) | | (31) | | | Gross recoveries | | — | | — | | | 13 | | 13 | | | Net credit losses (NCLs) | | $ | — | | $ | — | | | $ | (18) | | $ | (18) | | | Replenishment of NCLs | | $ | — | | $ | — | | | $ | 18 | | $ | 18 | | | Net reserve builds (releases) | | 15 | | 7 | | | 380 | | 402 | | | Total provision for credit losses | | $ | 15 | | $ | 7 | | | $ | 398 | | $ | 420 | | | Other, net | | $ | — | | $ | — | | | $ | 432 | | $ | 432 | | | Allowance for credit losses on other assets at end of quarter | | $ | 40 | | $ | 10 | | | $ | 2,649 | | $ | 2,699 | |
(1) Primarily ACL related to transfer risk associated with exposures outside the U.S.
For the ACL on AFS debt securities, see Note 11.
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