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Allowance for Credit Losses and Reserve for Unfunded Lending Commitments (Tables)
 12 Months Ended
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Allowance for Credit Losses on Financing Receivables The table below summarizes changes in the allowance for credit losses and reserve for unfunded lending commitments by portfolio segment for the years ended December 31, 2020, 2019 and 2018. The allowance balance as of December 31, 2020 reflects the cumulative effects from adoption of the CECL standard and the change to include finance charge and fee reserve in the allowance for credit losses. The reserve for unfunded lending commitments balance as of December 31, 2020 also reflects the cumulative effects from adoption of the CECL standard, including the component of loss sharing agreements with the government-sponsored enterprises (“GSEs”) on multifamily commercial real estate loans that are within the scope of the CECL standard. Our allowance for credit losses increased by $8.4 billion to $15.6 billion as of December 31, 2020 from 2019, primarily driven by the allowance builds in the first and second quarters of 2020 from expectations of economic worsening as a result of the COVID-19 pandemic as well as the adoption of the CECL standard in the first quarter of 2020.
Table 4.1: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity
(Dollars in millions)Credit
Card		Consumer
Banking		Commercial
Banking
Other(1)
Total
Allowance for loan and lease losses:
Balance as of December 31, 2017$5,648 $1,242 $611 $1 $7,502 
Charge-offs
(6,657)(1,832)(119)(7)(8,615)
Recoveries(2)
1,588 851 63 1 2,503 
Net charge-offs(5,069)(981)(56)(6)(6,112)
Provision (benefit) for loan and lease losses4,984 841 82 (49)5,858 
Allowance build (release) for loan and lease losses(85)(140)26 (55)(254)
Other changes(1)(3)
(28)(54)0 54 (28)
Balance as of December 31, 20185,535 1,048 637 0 7,220 
Reserve for unfunded lending commitments:
Balance as of December 31, 20170 7 117 0 124 
Provision (benefit) for losses on unfunded lending commitments0 (3)1 0 (2)
Balance as of December 31, 20180 4 118 0 122 
Combined allowance and reserve as of December 31, 2018$5,535 $1,052 $755 $0 $7,342 
(Dollars in millions)Credit CardConsumer BankingCommercial BankingTotal
Allowance for loan and lease losses:
Balance as of December 31, 2018$5,535 $1,048 $637 $7,220 
Charge-offs
(6,711)(1,917)(181)(8,809)
Recoveries(2)
1,562 970 25 2,557 
Net charge-offs(5,149)(947)(156)(6,252)
Provision for loan and lease losses4,992 937 294 6,223 
Allowance build (release) for loan and lease losses(157)(10)138 (29)
Other changes(3)
17 0 0 17 
Balance as of December 31, 20195,395 1,038 775 7,208 
Reserve for unfunded lending commitments:
Balance as of December 31, 20180 4 118 122 
Provision for losses on unfunded lending commitments0 1 12 13 
Balance as of December 31, 20190 5 130 135 
Combined allowance and reserve as of December 31, 2019
$5,395 $1,043 $905 $7,343 
Allowance for credit losses:
Balance as of December 31, 2019$5,395 $1,038 $775 $7,208 
Cumulative effects from adoption of the CECL standard2,241 502 102 2,845 
Finance charge and fee reserve reclassification(4)
462 0 0 462 
Balance as of January 1, 20208,098 1,540 877 10,515 
Charge-offs
(5,749)(1,534)(394)(7,677)
Recoveries(2)
1,479 956 17 2,452 
Net charge-offs(4,270)(578)(377)(5,225)
Provision for credit losses7,327 1,753 1,158 10,238 
Allowance build for credit losses(5)
3,057 1,175 781 5,013 
Other changes(3)
36 0 0 36 
Balance as of December 31, 202011,191 2,715 1,658 15,564 
Reserve for unfunded lending commitments:
Balance as of December 31, 20190 5 130 135 
Cumulative effects from adoption of the CECL standard0 (5)42 37 
Balance as of January 1, 20200 0 172 172 
Provision for losses on unfunded lending commitments0 0 23 23 
Balance as of December 31, 20200 0 195 195 
Combined allowance and reserve as of December 31, 2020$11,191 $2,715 $1,853 $15,759 
__________
(1)In 2018, we sold all of our consumer home loan portfolio and recognized a gain of approximately $499 million in the Other category, including a benefit for credit losses of $46 million.
(2)The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications, repossession of collateral, the periodic sale of charged off loans as well as additional strategies, such as litigation.
(3)Represents foreign currency translation adjustments.
(4)Concurrent with our adoption of the CECL standard in the first quarter of 2020, we reclassified our finance charge and fee reserve to our allowance for credit losses, with a corresponding increase to credit card loans held for investment.
(5)Includes an allowance release of $327 million for a partnership credit card loan portfolio transferred to held for sale in the third quarter of 2020.
Schedule of Loss Sharing Arrangement Impact
The table below summarizes the changes in the estimated reimbursements from these partners for the years ended December 31, 2020, 2019 and 2018. Beginning in 2019, amounts below include the impacts of our loss sharing arrangement on the acquired Walmart portfolio.
Table 4.2: Summary of Credit Card Partnership Loss Sharing Arrangements Impacts
Year Ended December 31,
(Dollars in millions)202020192018
Estimated reimbursements from partners, beginning of period(1)
$2,166 $379 $380 
Amounts due from partners which reduced net charge-offs(959)(600)(382)
Amounts estimated to be charged to partners which reduced provision for credit losses952 1,383 381 
Estimated reimbursements from partners, end of period$2,159 $1,162 $379 
__________
(1)Includes effects from adoption of the CECL standard in the first quarter of 2020.