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Loans and Card Member Receivables | 3 Months Ended
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Mar. 31, 2024
Receivables [Abstract] |
Loans and Card Member Receivables | Loans and Card Member Receivables Our lending and charge payment card products that we offer to consumer, small business and corporate customers result in the generation of Card Member loans and Card Member receivables. We also extend credit to customers through non-card financing products, resulting in Other loans. Card Member and Other loans as of March 31, 2024 and December 31, 2023 consisted of:
(Millions) |  | 2024 |  | 2023
Consumer (a) |  | $ | 96,789 |  |  | $ | 98,111 |
Small Business |  | 29,733 |  |  | 27,833 |
Corporate |  | 97 |  |  | 51 |
Card Member loans |  | 126,619 |  |  | 125,995 |
Less: Reserves for credit losses |  | 5,271 |  |  | 5,118 |
Card Member loans, net |  | $ | 121,348 |  |  | $ | 120,877 |
Other loans, net (b) |  | $ | 7,465 |  |  | $ | 6,960 |
(a)Includes approximately $27.3 billion and $28.6 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of March 31, 2024 and December 31, 2023, respectively. (b)Other loans are presented net of reserves for credit losses of $136 million and $126 million as of March 31, 2024 and December 31, 2023, respectively. Card Member receivables as of March 31, 2024 and December 31, 2023 consisted of:
(Millions) |  | 2024 |  | 2023
Consumer |  | $ | 24,015 |  |  | $ | 25,578 |
Small Business |  | 19,084 |  |  | 19,286 |
Corporate (a) |  | 16,676 |  |  | 15,547 |
Card Member receivables |  | 59,775 |  |  | 60,411 |
Less: Reserves for credit losses |  | 151 |  |  | 174 |
Card Member receivables, net |  | $ | 59,624 |  |  | $ | 60,237 |
(a)Includes $4.9 billion and $4.6 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of March 31, 2024 and December 31, 2023, respectively. Card Member Loans and Receivables Aging Generally, a Card Member account is considered past due if payment due is not received within 30 days after the billing statement date. The following table presents the aging of Card Member loans and receivables as of March 31, 2024 and December 31, 2023:
2024 (Millions) |  | Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90+ Days Past Due |  | Total |  | 90+ Days Past Due and Still Accruing Interest (c) |  | Non-Accruals(d)
Card Member Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | $ | 95,437 |  |  | $ | 402 |  |  | $ | 296 |  |  | $ | 654 |  |  | $ | 96,789 |  |  | $ | 412 |  |  | $ | 390 |
Small Business |  | 29,310 |  |  | 136 |  |  | 98 |  |  | 189 |  |  | 29,733 |  |  | 116 |  |  | 110 |
Corporate (a) |  | (b) |  | (b) |  | (b) |  | — |  |  | 97 |  |  | — |  |  | — |
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | 23,805 |  |  | 67 |  |  | 49 |  |  | 94 |  |  | 24,015 |  |  | — |  |  | — |
Small Business |  | $ | 18,829 |  |  | $ | 96 |  |  | $ | 58 |  |  | 101 |  |  | 19,084 |  |  | — |  |  | — |
Corporate (a) |  | (b) |  | (b) |  | (b) |  | $ | 85 |  |  | $ | 16,676 |  |  | $ | — |  |  | $ | — |
2023 (Millions) |  | Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90+ Days Past Due |  | Total |  | 90+ Days Past Due and Still Accruing Interest (c) |  | Non-Accruals(d) |  |
Card Member Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | $ | 96,779 |  |  | $ | 420 |  |  | $ | 298 |  |  | $ | 614 |  |  | $ | 98,111 |  |  | $ | 393 |  |  | $ | 344 |  |  |
Small Business |  | 27,444 |  |  | 133 |  |  | 85 |  |  | 171 |  |  | 27,833 |  |  | 109 |  |  | 95 |  |  |
Corporate (a) |  | (b) |  | (b) |  | (b) |  | — |  |  | 51 |  |  | — |  |  | — |  |  |
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | 25,355 |  |  | 70 |  |  | 47 |  |  | 106 |  |  | 25,578 |  |  | — |  |  | — |  |  |
Small Business |  | $ | 19,020 |  |  | $ | 104 |  |  | $ | 62 |  |  | 100 |  |  | 19,286 |  |  | — |  |  | — |  |  |
Corporate (a) |  | (b) |  | (b) |  | (b) |  | $ | 67 |  |  | $ | 15,547 |  |  | $ | — |  |  | $ | — |  |  |
(a)For corporate accounts, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member loan or receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b). (b)Delinquency data for periods other than 90+ days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances. (c)Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe will not be collected. (d)Non-accrual loans primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest. Credit Quality Indicators for Card Member Loans and Receivables The following tables present the key credit quality indicators as of or for the three months ended March 31:
|  | 2024 |  | 2023
| Net Write-Off Rate |  |  |  | Net Write-Off Rate |  |
| Principal Only (a) |  | Principal, Interest & Fees (a) |  | 30+ Days Past Due as a % of Total |  | Principal Only (a) |  | Principal, Interest & Fees (a) |  | 30+ Days Past Due as a % of Total
Card Member Loans: |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | 2.3 | % |  | 2.8 | % |  | 1.4 | % |  | 1.5 | % |  | 1.9 | % |  | 1.1 | %
Small Business |  | 2.2 | % |  | 2.6 | % |  | 1.4 | % |  | 1.2 | % |  | 1.4 | % |  | 1.1 | %
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | 1.4 | % |  | 1.5 | % |  | 0.9 | % |  | 1.7 | % |  | 1.8 | % |  | 1.1 | %
Small Business |  | 2.1 | % |  | 2.3 | % |  | 1.3 | % |  | 2.1 | % |  | 2.3 | % |  | 1.7 | %
Corporate |  | (b) |  | 0.5 | % |  | (c) |  | (b) |  | 0.6 | % |  | (c)
(a)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented. (b)Net write-off rate based on principal losses only is not available due to system constraints. (c)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. Delinquency data for periods other than 90+ days past billing is not available due to system constraints. 90+ days past billing as a % of total was 0.5% as of both March 31, 2024 and 2023. Refer to Note 3 for additional indicators, including external qualitative factors, management considers in its evaluation process for reserves for credit losses. Loans and Receivables Restructurings for Borrowers Experiencing Financial Difficulty Effective January 1, 2023, we prospectively adopted the new guidance that eliminated the recognition and measurement of troubled debt restructurings. Following the adoption of this guidance, we evaluate all loans and receivables restructurings according to the accounting guidance for loan refinancing and restructuring to determine whether such loan modification should be accounted for as a new loan or a continuation of the existing loan. Our loans and receivables restructurings for borrowers experiencing financial difficulty are generally accounted for as a continuation of the existing loan, which reflects the ongoing effort to support our customer and recover our investment in the existing loan. We offer several types of loans and receivables modification programs to customers experiencing financial difficulty. In such instances, we may modify loans and receivables with the intention to minimize losses and improve collectability, while providing customers with temporary or permanent financial relief. Such modifications to the loans and receivables primarily include (i) temporary interest rate reductions (reducing interest rates to as low as zero percent, in which case the loan is characterized as non-accrual), and/or (ii) placing the customer on a fixed payment plan not to exceed 60 months. Upon entering the modification program, the customer’s ability to make future purchases is limited, canceled or, in certain cases, suspended until the customer successfully exits from the modification program. As of March 31, 2024 and 2023, we had $28 million and $14 million, respectively, of unused credit available to customers with loans and receivables modified during each of the respective three month periods. In accordance with the modification agreement with the customer, loans and/or receivables may revert to the original contractual terms (including the contractual interest rate where applicable) when the customer exits the modification program, which is either (i) when all payments have been made in accordance with the modification agreement or (ii) when the customer defaults out of the modification program. The following table provides information relating to loans and receivables modifications for borrowers experiencing financial difficulty during the three months ended March 31, 2024 and 2023:
|  | Three Months Ended March 31,
|  | 2024 |  | 2023
|  | Account Balances (Millions) (a) |  | % of Total Class of Financing Receivables |  | Weighted Average Interest Rate Reduction (% points) |  | Weighted Average Payment Term Extensions (# of months) |  | Account Balances (Millions) (a) |  | % of Total Class of Financing Receivables |  | Weighted Average Interest Rate Reduction (% points) |  | Weighted Average Payment Term Extensions (# of months)
Interest Rate Reduction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Card Member Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | $ | 586 |  |  | 0.6 | % |  | 18.0 | % |  | (b) |  | $ | 329 |  |  | 0.4 | % |  | 15.3 | % |  | (b)
Small Business |  | 206 |  |  | 0.7 | % |  | 17.4 | % |  | (b) |  | 144 |  |  | 0.6 | % |  | 15.1 | % |  | (b)
Corporate |  | — |  |  | — |  |  | — |  |  | (b) |  | — |  |  | — |  |  | — |  |  | (b)
Term Extension |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Card Member Receivables |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | 114 |  |  | 0.5 | % |  | (c) |  | 29 |  | 117 |  |  | 0.5 | % |  | (c) |  | 23
Small Business |  | 174 |  |  | 0.9 | % |  | (c) |  | 29 |  | 199 |  |  | 1.0 | % |  | (c) |  | 24
Corporate |  | 6 |  |  | 0.04 | % |  | (c) |  | 9 |  | 7 |  |  | 0.04 | % |  | (c) |  | 10
Other Loans |  | 11 |  |  | 0.1 | % |  | — |  |  | 19 |  | 6 |  |  | 0.1 | % |  | — |  |  | 18
Interest Rate Reduction and Term Extension |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other Loans |  | 18 |  |  | 0.2 | % |  | 2.3 | % |  | 19 |  | 5 |  |  | 0.1 | % |  | 1.9 | % |  | 18
Total |  | $ | 1,115 |  |  |  |  |  |  |  |  | $ | 807 |  |  |  |  |  |  |
(a)Represents the outstanding balances as of March 31, 2024 and 2023 of all modifications undertaken in the prior three months for loans and receivables that remain in modification programs as of, or that defaulted on or before, March 31, 2024 and 2023, respectively. The outstanding balances include principal, fees, and accrued interest on loans and principal and fees on receivables. Modifications did not reduce the principal balance. (b)For Card Member loans, there have been no payment term extensions. (c)We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. The following table provides information with respect to modified loans and receivables that defaulted during the period presented and were modified in the twelve months prior to the payment default. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program. For loans and receivables modified on or after January 1, 2023, the amount of defaulted balances was immaterial for the three months ended March 31, 2023.
|  | Three Months Ended March 31, 2024 |  |
Account Balance (Millions) (a) |  | Interest Rate Reduction |  | Term Extension |  | Interest Rate Reduction and Term Extension |  | Total |  |  |  |  |  |  |  |
Card Member Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | $ | 40 |  |  | (b) |  | $ | — |  | $ | 40 |  |  |  |  |  |  |  |  |
Small Business |  | 18 |  |  | (b) |  | — |  | 18 |  |  |  |  |  |  |  |  |
Corporate |  | — |  |  | (b) |  | — |  | — |  |  |  |  |  |  |  |  |
Card Member Receivables |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | (c) |  | $ | 6 |  |  | — |  |  | 6 |  |  |  |  |  |  |  |  |
Small Business |  | (c) |  | 13 |  |  | — |  |  | 13 |  |  |  |  |  |  |  |  |
Corporate |  | (c) |  | 1 |  |  | — |  |  | 1 |  |  |  |  |  |  |  |  |
Other Loans |  | — |  |  | — |  |  | 1 |  |  | 1 |  |  |  |  |  |  |  |  |
Total |  | $ | 58 |  |  | $ | 20 |  |  | $ | 1 |  |  | $ | 79 |  |  |  |  |  |  |  |  |
(a)Represents the outstanding balances as of March 31, 2024 of all modifications that defaulted in the three months ended March 31, 2024 and were modified in the twelve months prior to payment default. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on receivables. (b)For Card Member loans, there have been no payment term extensions. (c)We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. The following table provides information relating to the performance of loans and receivables that were modified during the prior twelve months and that remain in modification programs as of, or that defaulted on or before, March 31, 2024.
|  | As of March 31, 2024
Account Balances (Millions) (a) |  | Current |  | 30-89 Days Past Due |  | 90+ Days Past Due
Card Member Loans |  |  |  |  |  |
Consumer |  | $ | 1,635 |  |  | $ | 106 |  |  | $ | 39 |
Small Business |  | 535 |  |  | 51 |  |  | 17 |
Corporate |  | — |  |  | — |  |  | — |
Card Member Receivables: |  |  |  |  |  |
Consumer |  | 312 |  |  | 23 |  |  | 6 |
Small Business |  | 468 |  |  | 48 |  |  | 13 |
Corporate |  | 8 |  |  | 1 |  |  | 2 |
Other Loans |  | 71 |  |  | 6 |  |  | 2 |
Total |  | $ | 3,029 |  |  | $ | 235 |  |  | $ | 79 |
(a)The outstanding balance as of March 31, 2024 includes principal, fees and accrued interest on loans and principal and fees on receivables. The following table provides information relating to the performance of loans and receivables that were modified on or after January 1, 2023 and that remained in modification programs as of, or that defaulted on or before, March 31, 2023.
|  | As of March 31, 2023
Account Balances (Millions) (a) |  | Current |  | 30-89 Days Past Due |  | 90+ Days Past Due
Card Member Loans |  |  |  |  |  |
Consumer |  | $ | 273 |  |  | $ | 43 |  |  | $ | 13 |
Small Business |  | 119 |  |  | 20 |  |  | 5 |
Corporate |  | — |  |  | — |  |  | — |
Card Member Receivables: |  |  |  |  |  |
Consumer |  | 100 |  |  | 14 |  |  | 3 |
Small Business |  | 157 |  |  | 36 |  |  | 6 |
Corporate |  | 7 |  |  | — |  |  | — |
Other Loans |  | 11 |  |  | — |  |  | — |
Total |  | $ | 667 |  |  | $ | 113 |  |  | $ | 27 |
(a)The outstanding balance as of March 31, 2023 includes principal, fees and accrued interest on loans and principal and fees on receivables.

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