Reserves for Credit Losses (Tables)

9 Months Ended

Sep. 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 three and nine months ended September 30:


	Three Months Ended September 30,						Nine Months Ended September 30,
(Millions)	2020		2019		2020		2019
Beginning Balance ^(a)	$	5,628	$	2,168	$	4,027	$	2,134
Provisions ^(b)	571		604		3,416		1,732
Net write-offs ^(c)
Principal	(432)		(447)		(1,449)		(1,367)
Interest and fees	(91)		(91)		(301)		(277)
Other ^(d)	12		(2)		(5)		10
Ending Balance	$	5,688	$	2,232	$	5,688	$	2,232

(a)For the nine months ended September 30, 2020, beginning balance 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 $142 million and $135 million for the three months ended September 30, 2020 and 2019, respectively, and $421 million and $389 million for the nine months ended September 30, 2020 and 2019, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(35) million and $(20) million for the three months September 30, 2020 and 2019, respectively, and $(98) million and $(53) million for the nine months ended September 30, 2020 and 2019, respectively.

(d)Primarily includes foreign currency translation adjustments of $13 million and $(6) million for the three months ended September 30, 2020 and 2019, respectively, and $(4) million and $(3) million for the nine months ended September 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 three and nine months ended September 30:


	Three Months Ended September 30,						Nine Months Ended September 30,
(Millions)	2020		2019		2020		2019
Beginning Balance ^(a)	$	519	$	616	$	126	$	573
Provisions ^(b)	117		238		1,069		715
Net write-offs ^(c)	(219)		(231)		(776)		(657)
Other ^(d)	5		(8)		3		(16)
Ending Balance	$	422	$	615	$	422	$	615

(a)For the nine months ended September 30, 2020, beginning balance 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 $103 million and $94 million for the three months ended September 30, 2020 and 2019, respectively, and $283 million and $278 million for the nine months ended September 30, 2020 and 2019, respectively. Amounts include net (write-offs) recoveries from TDRs of $(15) million and $(5) million for the three months ended September 30, 2020 and 2019, respectively, and $(31) million and $(11) million, for the nine months ended September 30, 2020 and 2019, respectively.

(d)Primarily includes foreign currency translation adjustments of $3 million and $(6) million for the three months ended September 30, 2020 and 2019, respectively, and $2 million and $(3) million for the nine months ended September 30, 2020 and 2019, respectively.