2003 Annual Report: Financial Review: Statements and Notes: Note 7 Outstanding Loans and Leases

Outstanding loans and leases at December 31, 2003 and 2002 were:

		December 31
(Dollars in millions)		2003				2002
Commercial - domestic		$	96,644			$	105,053
Commercial - foreign			15,293				19,912
Commercial real estate - domestic			19,043				19,910
Commercial real estate - foreign			324				295
Total commercial			131,304				145,170
Residential mortgage			140,513				108,197
Home equity lines			23,859				23,236
Direct/Indirect consumer			33,415				31,068
Consumer finance			5,589				8,384
Credit card			34,814				24,729
Foreign consumer			1,969				1,971
Total consumer			240,159				197,585
Total(1)		$	371,463			$	342,755
(1)  Includes lease financings of $11,376 and $14,332 at December 31, 2003 and 2002, respectively.

The following table presents the recorded investment in specific loans, without consideration to the specific component of the allowance for loan and lease losses that were considered individually impaired in accordance with SFAS 114 at December 31, 2003 and 2002. SFAS 114 impairment includes certain performing troubled debt restructurings, and excludes all commercial leases.

		December 31
(Dollars in millions)		2003				2002
Commercial - domestic		$	1,404			$	2,553
Commercial - foreign			581				1,355
Commercial real estate - domestic			151				157
Commercial real estate - foreign			2				2
Total impaired loans		$	2,138			$	4,067

The average recorded investment in certain impaired loans for 2003, 2002 and 2001 was approximately $3.0 billion, $3.9 billion and $3.7 billion, respectively. At December 31, 2003 and 2002, the recorded investment in impaired loans requiring an allowance for credit losses based on individual analysis per SFAS 114 guidelines was $2.0 billion and $4.0 billion, and the related allowance for credit losses was $391 million and $919 million, respectively. For 2003, 2002 and 2001, interest income recognized on impaired loans totaled $105 million, $156 million and $195 million, respectively, all of which was recognized on a cash basis.

At December 31, 2003 and 2002, nonperforming loans, including certain loans that were considered impaired, totaled $2.9 billion and $5.0 billion, respectively. In addition, included in other assets was $202 million and $120 million of nonperforming assets at December 31, 2003 and 2002, respectively.

Foreclosed properties amounted to $148 million and $225 million at December 31, 2003 and 2002, respectively. The cost of carrying foreclosed properties amounted to $3 million, $7 million and $15 million in 2003, 2002 and 2001, respectively.