Reserves for Losses

3 Months Ended

Mar. 31, 2019

3. Reserves for Losses

Reserves for losses relating to Card Member receivables and Card Member loans represent management’s best estimate of the probable inherent losses in Credco’s outstanding portfolio of receivables and loans, as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments.

Changes in Card Member Receivables Reserve for Losses

The following table presents changes in the Card Member receivables reserve for losses for the three months ended March 31:

(Millions)		2019		2018
Balance, January 1		$	167	$	145
	Provisions		60		62
	Other credits^(a)		9		28
	Net write-offs^(b)		(61)		(56)
Balance, March 31		$	175	$	179

Primarily reserve balances related to new groups of, and participation interests in, Card Member receivables purchased from affiliates, totaling $1.6 billion and $4.3 billion for the three months ended March 31, 2019 and 2018, respectively.
Net of recoveries of $31 million and $28 million for the three months ended March 31, 2019 and 2018, respectively.

Changes in Card Member Loans Reserve for Losses

The following table presents changes in the Card Member loans reserve for losses for the three months ended March 31:

(Millions)		2019		2018
Balance, January 1		$	5	$	5
	Provisions		3		2
	Net write-offs^(a)		(2)		(1)
Balance, March 31		$	6	$	6

Net of recoveries of $0.3 million for both the three months ended March 31, 2019 and 2018