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Reserves for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2020

Changes in the Card Member loans reserve for credit losses

The following table presents changes in the Card Member loans reserve for credit losses for the six months ended June 30:


(Millions)	2020		2019
Balance, January 1^(a)	$	4,027	$	2,134
Provisions ^(b)	2,845		1,128
Net write-offs ^(c)
Principal	(1,017)		(920)
Interest and fees	(210)		(186)
Other ^(d)	(17)		12
Balance, June 30	$	5,628	$	2,168

(a)Includes an increase of $1,643 million as of January 1, 2020, related to the adoption of the CECL methodology.

(b)Provisions for principal, interest and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs.

(c)Principal write-offs are presented less recoveries of $279 million and $254 million for the six months ended June 30, 2020 and 2019, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(63) million and $(33) million for the six months ended June 30, 2020 and 2019, respectively.

(d)Primarily includes foreign currency translation adjustments of $(17) million and $3 million for the six months ended June 30, 2020 and 2019, respectively.

Changes in the Card Member receivable reserve for credit losses

The following table presents changes in the Card Member receivables reserve for credit losses for the six months ended June 30:


(Millions)	2020		2019
Balance, January 1 ^(a)	$	126	$	573
Provisions ^(b)	952		477
Net write-offs ^(c)	(557)		(426)
Other ^(d)	(2)		(8)
Balance, June 30	$	519	$	616

(a)Includes a decrease of $493 million as of January 1, 2020, related to the adoption of the CECL methodology.

(b)Provisions for principal and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs.

(c)Net write-offs are presented less recoveries of $180 million and $184 million for the six months ended June 30, 2020 and 2019, respectively. Amounts include net (write-offs) recoveries from TDRs of $(16) million and $(6) million, for the six months ended June 30, 2020 and 2019, respectively.

(d)Primarily includes foreign currency translation adjustments of $(1) million and $3 million for the six months ended June 30, 2020 and 2019, respectively.