Reserves for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Key Variables in Macroeconomic Scenarios Utilized for Computation of Reserves for Credit Losses

The following table reflects the range of macroeconomic scenario key variables used, in conjunction with other inputs, to calculate reserves for credit losses:


	U.S. Unemployment Rate		U.S. GDP Growth (Contraction) (a)
	December 31, 2022	December 31, 2021		December 31, 2022		December 31, 2021
Fourth quarter of 2022	4%		4% - 9%		(0.1)%		2% -1%
First quarter of 2023	3% - 6%		3% - 9%		5% - (1)%		3% - 1%
Fourth quarter of 2023	3% - 8%		3% - 7%		6% - 0.2%		4% - 3%
Fourth quarter of 2024	3% - 7%		4% - 6%		3% - 2%		3%

(a)Real GDP quarter over quarter percentage change seasonally adjusted to annualized rates.

Schedule of Changes in Card Member Loans and Receivables

The following table presents changes in the Card Member loans reserve for credit losses for the years ended December 31:


(Millions)	2022		2021		2020
Beginning Balance	$	3,305	$	5,344	$	4,027
Provisions(a)	1,514		(1,155)		3,453
Net write-offs (b)
Principal	(837)		(672)		(1,795)
Interest and fees	(229)		(207)		(375)
Other(c)	(6)		(5)		34
Ending Balance	$	3,747	$	3,305	$	5,344

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

(b)Principal write-offs are presented less recoveries of $539 million, $657 million and $568 million for the years ended December 31, 2022, 2021 and 2020, respectively. Recoveries of interest and fees were not significant. Amounts include net (write-offs) recoveries from TDRs of $(209) million, $(171) million and $(134) million for the years ended December 31, 2022, 2021 and 2020, respectively.

(c)Primarily includes foreign currency translation adjustments of $(6) million for both the years ended December 31, 2022 and 2021, and $35 million for the year ended December 31, 2020.

The following table presents changes in the Card Member receivables reserve for credit losses for the years ended December 31:


(Millions)	2022		2021		2020
Beginning Balance	$	64	$	267	$	126
Provisions (a)	627		(73)		1,015
Net write-offs (b)	(462)		(129)		(881)
Other (c)	—		(1)		7
Ending Balance	$	229	$	64	$	267

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

(b)Net write-offs are presented less recoveries of $257 million, $378 million and $386 million for the years ended December 31, 2022, 2021 and 2020, respectively. Amounts include net recoveries (write-offs) from TDRs of $(73) million, $(64) million and $(47) million, for the years ended December 31, 2022, 2021 and 2020, respectively.

(c)Primarily includes foreign currency translation adjustments of $2 million, $(1) million and $5 million for the years ended December 31, 2022, 2021 and 2020, respectively.