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2003 Annual Report: Financial Review: Statistical Financial Information: Table XIII Allowance for Credit Losses

Table XIII

Allowance for Credit Losses

(Dollars in millions) 2003 2002 2001 2000 1999
Allowance for loan and lease losses, January 1 $ 6,358 $ 6,278 $ 6,365 $ 6,314 $ 6,557
Loans and leases charged off
Commercial - domestic (989 ) (1,793 ) (2,120 ) (1,412 ) (820 )
Commercial - foreign (408 ) (566 ) (249 ) (117 ) (161 )
Commercial real estate - domestic (46 ) (45 ) (46 ) (31 ) (19 )
Commercial real estate - foreign - - - (1 ) (1 )
     Total commercial (1,443 ) (2,404 ) (2,415 ) (1,561 ) (1,001 )
Residential mortgage (64 ) (56 ) (39 ) (36 ) (35 )
Home equity lines (38 ) (40 ) (32 ) (29 ) (24 )
Direct/Indirect consumer (322 ) (355 ) (389 ) (395 ) (434 )
Consumer finance(1) (280 ) (333 ) (1,137 ) (512 ) (445 )
Credit card (1,657 ) (1,210 ) (753 ) (392 ) (571 )
Other consumer domestic (57 ) (57 ) (73 ) (66 ) (52 )
Foreign consumer (6 ) (5 ) (6 ) (4 ) (20 )
     Total consumer (2,424 ) (2,056 ) (2,429 ) (1,434 ) (1,581 )
          Total loans and leases charged off (3,867 ) (4,460 ) (4,844 ) (2,995 ) (2,582 )
Recoveries of loans and leases previously charged off
Commercial - domestic 232 322 171 125 109
Commercial - foreign 102 45 41 31 17
Commercial real estate - domestic 5 8 7 18 25
Commercial real estate - foreign - - - 3 -
     Total commercial 339 375 219 177 151
Residential mortgage 24 14 13 9 7
Home equity lines 26 14 13 9 12
Direct/Indirect consumer 141 145 139 149 150
Consumer finance 68 78 111 178 170
Credit card 143 116 81 54 76
Other consumer domestic 19 21 23 18 13
Foreign consumer 1 - 1 1 3
     Total consumer 422 388 381 418 431
          Total recoveries of loans and leases previously charged off 761 763 600 595 582
               Net charge-offs (3,106 ) (3,697 ) (4,244 ) (2,400 ) (2,000 )
Provision for loan and lease losses(2) 2,916 3,801 4,163 2,576 1,871
Other, net (5 ) (24 ) (6 ) (125 ) (114 )
     Allowance for loan and lease losses, December 31 $ 6,163 $ 6,358 $ 6,278 $ 6,365 $ 6,314
Reserve for unfunded lending commitments, January 1 $ 493 $ 597 $ 473 $ 514 $ 565
Provision for unfunded lending commitments (77 ) (104 ) 124 (41 ) (51 )
     Reserve for unfunded lending commitments, December 31 $ 416 $ 493 $ 597 $ 473 $ 514
          Total $ 6,579 $ 6,851 $ 6,875 $ 6,838 $ 6,828
Loans and leases outstanding at December 31 $ 371,463 $ 342,755 $ 329,153 $ 392,193 $ 370,662
Allowance for loan and lease losses as a percentage of loans
     and leases outstanding at December 31 1.66 % 1.85 % 1.91 % 1.62 % 1.70 %
Average loans and leases outstanding during the year $ 356,148 $ 336,819 $ 365,447 $ 392,622 $ 362,783
Net charge-offs as a percentage of average outstanding loans
     and leases during the year 0.87 % 1.10 % 1.16 % 0.61 % 0.55 %
Allowance for loan and lease losses as a percentage of nonperforming
     loans at December 31 215 126 139 122 208
Ratio of allowance for loan and lease losses at December 31 to
     net charge-offs 1.98 1.72 1.48 2.65 3.16
(1)  Includes $635 related to the exit of the subprime real estate lending business in 2001.
(2)  Includes $395 related to the exit of the subprime real estate lending business in 2001.


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