Loan Receivables and Allowance for Credit Losses (Tables)
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3 Months Ended |
Mar. 31, 2022 |
Receivables [Abstract] |
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Schedule of Accounts, Notes, Loans and Financing Receivable |
| | | | | | | | | | | | ($ in millions) | March 31, 2022 | | December 31, 2021 | Credit cards | $ | 74,596 | | | $ | 76,628 | | Consumer installment loans | 2,719 | | | 2,675 | | Commercial credit products | 1,530 | | | 1,372 | | Other | 71 | | | 65 | | Total loan receivables, before allowance for credit losses(a)(b) | $ | 78,916 | | | $ | 80,740 | |
_______________________ (a)Total loan receivables include $19.3 billion and $20.5 billion of restricted loans of consolidated securitization entities at March 31, 2022 and December 31, 2021, respectively. See Note 5. Variable Interest Entities for further information on these restricted loans. (b)At March 31, 2022 and December 31, 2021, loan receivables included deferred costs, net of deferred income, of $213 million and $211 million, respectively.
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Allowance for Credit Losses on Financing Receivables |
Allowance for Credit Losses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ in millions) | | | | | Balance at January 1, 2022 | | Provision charged to operations | | Gross charge-offs | | Recoveries | | Other | | | | Balance at March 31, 2022 | Credit cards | | | | | $ | 8,512 | | | $ | 482 | | | $ | (719) | | | $ | 189 | | | $ | — | | | | | $ | 8,464 | | Consumer installment loans | | | | | 115 | | | 17 | | | (21) | | | 4 | | | — | | | | | 115 | | Commercial credit products | | | | | 59 | | | 22 | | | (12) | | | 1 | | | — | | | | | 70 | | Other | | | | | 2 | | | — | | | — | | | — | | | — | | | | | 2 | | Total | | | | | $ | 8,688 | | | $ | 521 | | | $ | (752) | | | $ | 194 | | | $ | — | | | | | $ | 8,651 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ in millions) | Balance at January 1, 2021 | | Provision charged to operations | | Gross charge-offs | | Recoveries | | Other | | Balance at March 31, 2021 | Credit cards | $ | 10,076 | | | $ | 341 | | | $ | (901) | | | $ | 219 | | | $ | — | | | $ | 9,735 | | Consumer installment loans | 127 | | | (18) | | | (15) | | | 5 | | | 1 | | | 100 | | Commercial credit products | 61 | | | 10 | | | (9) | | | 2 | | | — | | | 64 | | Other | 1 | | | 1 | | | — | | | — | | | — | | | 2 | | Total | $ | 10,265 | | | $ | 334 | | | $ | (925) | | | $ | 226 | | | $ | 1 | | | $ | 9,901 | |
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Past Due Financing Receivables |
Delinquent and Non-accrual Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At March 31, 2022 ($ in millions) | 30-89 days delinquent | | 90 or more days delinquent | | Total past due | | 90 or more days delinquent and accruing | | Total non-accruing | Credit cards | $ | 1,103 | | | $ | 1,000 | | | $ | 2,103 | | | $ | 1,000 | | | $ | — | | Consumer installment loans | 30 | | | 6 | | | 36 | | | — | | | 6 | | Commercial credit products | 35 | | | 20 | | | 55 | | | 20 | | | — | | | | | | | | | | | | Total delinquent loans | $ | 1,168 | | | $ | 1,026 | | | $ | 2,194 | | | $ | 1,020 | | | $ | 6 | | Percentage of total loan receivables | 1.5 | % | | 1.3 | % | | 2.8 | % | | 1.3 | % | | — | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2021 ($ in millions) | 30-89 days delinquent | | 90 or more days delinquent | | Total past due | | 90 or more days delinquent and accruing | | Total non-accruing | Credit cards | $ | 1,111 | | | $ | 923 | | | $ | 2,034 | | | $ | 923 | | | $ | — | | Consumer installment loans | 35 | | | 6 | | | 41 | | | — | | | 6 | | Commercial credit products | 26 | | | 13 | | | 39 | | | 13 | | | — | | | | | | | | | | | | Total delinquent loans | $ | 1,172 | | | $ | 942 | | | $ | 2,114 | | | $ | 936 | | | $ | 6 | | Percentage of total loan receivables | 1.5 | % | | 1.2 | % | | 2.6 | % | | 1.2 | % | | — | % |
Delinquency trends are the primary credit quality indicator for our consumer installment loans, which we use to monitor credit quality and risk within the portfolio. Total consumer installment past due of $36 million and $41 million at March 31, 2022 and December 31, 2021, respectively, were not material.
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Troubled Debt Restructurings on Financing Receivables |
The following table provides information on our TDR loan modifications during the periods presented: | | | | | | | | | | | | | | | | | Three months ended March 31, | | | ($ in millions) | 2022 | | 2021 | | | | | Credit cards | $ | 223 | | | $ | 261 | | | | | | Consumer installment loans | — | | | — | | | | | | Commercial credit products | 1 | | | 1 | | | | | | | | | | | | | | Total | $ | 224 | | | $ | 262 | | | | | |
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Impaired Financing Receivables |
The following table provides information about loans classified as TDRs and specific reserves. We do not evaluate credit card loans on an individual basis but instead estimate an allowance for credit losses on a collective basis. | | | | | | | | | | | | | | | | | | | | | | | | At March 31, 2022 ($ in millions) | Total recorded investment | | Related allowance | | Net recorded investment | | Unpaid principal balance | Credit cards | $ | 1,193 | | | $ | (496) | | | $ | 697 | | | $ | 1,071 | | Consumer installment loans | — | | | — | | | — | | | — | | Commercial credit products | 3 | | | (1) | | | 2 | | | 3 | | Total | $ | 1,196 | | | $ | (497) | | | $ | 699 | | | $ | 1,074 | |
| | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2021 ($ in millions) | Total recorded investment | | Related allowance | | Net recorded investment | | Unpaid principal balance | Credit cards | $ | 1,171 | | | $ | (481) | | | $ | 690 | | | $ | 1,053 | | Consumer installment loans | — | | | — | | | — | | | — | | Commercial credit products | 3 | | | (1) | | | 2 | | | 3 | | Total | $ | 1,174 | | | $ | (482) | | | $ | 692 | | | $ | 1,056 | |
The following table presents the types and financial effects of loans modified and accounted for as TDRs during the periods presented: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended March 31, | 2022 | | 2021 | ($ in millions) | Interest income recognized during period when loans were modified | | Interest income that would have been recorded with original terms | | Average recorded investment | | Interest income recognized during period when loans were modified | | Interest income that would have been recorded with original terms | | Average recorded investment | Credit cards | $ | 9 | | | $ | 77 | | | $ | 1,183 | | | $ | 11 | | | $ | 79 | | | $ | 1,273 | | Consumer installment loans | — | | | — | | | — | | | — | | | — | | | — | | Commercial credit products | — | | | — | | | 3 | | | — | | | — | | | 4 | | Total | $ | 9 | | | $ | 77 | | | $ | 1,186 | | | $ | 11 | | | $ | 79 | | | $ | 1,277 | |
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Troubled Debt Restructurings on Financing Receivables, Subsequent Default |
The following table presents the type, number and amount of loans accounted for as TDRs that enrolled in a modification plan within the previous 12 months from the applicable balance sheet date and experienced a payment default and charged-off during the periods presented. | | | | | | | | | | | | | | | | | | | | | | | | Three months ended March 31, | 2022 | | 2021 | ($ in millions) | Accounts defaulted | | Loans defaulted | | Accounts defaulted | | Loans defaulted | Credit cards | 18,072 | | | $ | 42 | | | 16,933 | | | $ | 47 | | Consumer installment loans | — | | | — | | | — | | | — | | Commercial credit products | 38 | | | — | | | 38 | | — | | | | | | | | | | Total | 18,110 | | | $ | 42 | | | 16,971 | | | $ | 47 | |
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Financing Receivable Credit Quality Indicators |
The following table provides the most recent VantageScore scores available for our customers at March 31, 2022, December 31, 2021 and March 31, 2021, respectively, as a percentage of each class of loan receivable. The table below excludes 0.4%, 0.4% and 0.6% of our total loan receivables balance at each of March 31, 2022, December 31, 2021 and March 31, 2021, respectively, which represents those customer accounts for which a VantageScore score is not available. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2022 | | December 31, 2021 | | March 31, 2021 | | 651 or | | 591 to | | 590 or | | 651 or | | 591 to | | 590 or | | 651 or | | 591 to | | 590 or | | higher | | 650 | | | less | | higher | | 650 | | | less | | higher | | 650 | | | less | Credit cards | 76 | % | | 18 | % | | 6 | % | | 78 | % | | 17 | % | | 5 | % | | 77 | % | | 18 | % | | 5 | % | Consumer installment loans | 79 | % | | 17 | % | | 4 | % | | 79 | % | | 17 | % | | 4 | % | | 79 | % | | 17 | % | | 4 | % | Commercial credit products | 92 | % | | 5 | % | | 3 | % | | 92 | % | | 5 | % | | 3 | % | | 93 | % | | 4 | % | | 3 | % |
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Interest Income and Interest Expense Disclosure |
The following table provides additional information about our interest and fees on loans, including merchant discounts, from our loan receivables, including held for sale: | | | | | | | | | | | | | | | | | Three months ended March 31, | | | ($ in millions) | 2022 | | 2021 | | | | | Credit cards(a) | $ | 3,913 | | | $ | 3,657 | | | | | | Consumer installment loans | 66 | | | 53 | | | | | | Commercial credit products | 28 | | | 21 | | | | | | Other | 1 | | | 1 | | | | | | Total | $ | 4,008 | | | $ | 3,732 | | | | | | _______________________(a)Interest income on credit cards that was reversed related to accrued interest receivables written off was $247 million and $305 million for the three months ended March 31, 2022 and 2021, respectively.
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