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Reserves for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2024
Credit Loss [Abstract]  
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:
TABLE 3.1: KEY MACROECONOMIC VARIABLES
U.S. Unemployment Rate
U.S. GDP Growth (Contraction) (a)
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Fourth quarter of 2024
4%
3% - 8%
2%
3% - 1%
First quarter of 2025
4% - 6%
3% - 8%
4% - (3)%
2% - 1%
Fourth quarter of 2025
3% - 8%
3% - 7%
3% - 1%
2%
Fourth quarter of 2026
3% - 7%
3% - 6%
2%
3% - 2%
(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:
TABLE 3.2: CHANGES IN CARD MEMBER LOANS RESERVE FOR CREDIT LOSSES
(Millions)202420232022
Beginning Balance$5,118 $3,747 $3,305 
Provisions(a)
4,109 3,839 1,514 
Net write-offs (b)
Principal(2,894)(2,043)(837)
Interest and fees(621)(443)(229)
Other(c)
(33)18 (6)
Ending Balance$5,679 $5,118 $3,747 
(a)Provisions for principal, interest and fee reserve components. Provisions for credit losses includes reserve build (release) and replenishment for net write-offs. In addition, provisions for the year ended December 31, 2024 includes the reserve release of $49 million upon the reclassification of Card Member loans related to the Lowe’s small business cobrand portfolio as HFS in the fourth quarter of 2024. See Note 1 for additional information.
(b)Principal write-offs are presented less recoveries of $730 million, $537 million and $539 million for the years ended December 31, 2024, 2023 and 2022, respectively. Recoveries of interest and fees were not significant.
(c)Primarily includes foreign currency translation adjustments of $(33) million, $18 million and $(6) million for the years ended December 31, 2024, 2023 and 2022, respectively.
The following table presents changes in the Card Member receivables reserve for credit losses for the years ended December 31:
TABLE 3.3: CHANGES IN CARD MEMBER RECEIVABLES RESERVE FOR CREDIT LOSSES
(Millions)202420232022
Beginning Balance$174 $229 $64 
Provisions (a)
774 880 627 
Net write-offs (b)
(773)(937)(462)
Other (c)
(4)2 — 
Ending Balance$171 $174 $229 
(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 $304 million, $297 million and $257 million for the years ended December 31, 2024, 2023 and 2022, respectively.
(c)Primarily includes foreign currency translation adjustments of $(4) million, $1 million and $2 million for the years ended December 31, 2024, 2023 and 2022, respectively.