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Loans and Card Member Receivables (Tables)

9 Months Ended

Sep. 30, 2022

Card Member and Other loans as of September 30, 2022 and December 31, 2021 consisted of:


(Millions)	2022		2021
Consumer (a)	$	76,966	$	70,467
Small Business	22,018		18,040
Corporate	54		55
Card Member loans	99,038		88,562
Less: Reserves for credit losses	3,319		3,305
Card Member loans, net	$	95,719	$	85,257
Other loans, net (b)	$	4,797	$	2,859

(a)Includes approximately $26.7 billion and $26.6 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of September 30, 2022 and December 31, 2021, respectively.

(b)Other loans are presented net of reserves for credit losses of $46 million and $52 million as of September 30, 2022 and December 31, 2021, respectively.

Card Member receivables as of September 30, 2022 and December 31, 2021 consisted of:


(Millions)	2022		2021
Consumer	$	20,366	$	22,392
Small Business	18,969		17,977
Corporate (a)	15,940		13,276
Card Member receivables	55,275		53,645
Less: Reserves for credit losses	159		64
Card Member receivables, net	$	55,116	$	53,581

(a)Includes $5.8 billion and $5.2 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of September 30, 2022 and December 31, 2021, respectively.

Aging of receivables

The following table presents the aging of Card Member loans and receivables as of September 30, 2022 and December 31, 2021:


2022 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Card Member Loans:
Consumer	$	76,283	$	229	$	154	$	300	$	76,966
Small Business	21,857		61		38		62		22,018
Corporate (a)	(b)		(b)		(b)		—		54
Card Member Receivables:
Consumer	20,161		77		47		81		20,366
Small Business	$	18,722	$	103	$	57	$	87	$	18,969
Corporate (a)	(b)		(b)		(b)		$	98	$	15,940


2021 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Card Member Loans:
Consumer	$	69,960	$	158	$	112	$	237	$	70,467
Small Business	17,950		34		19		37		18,040
Corporate (a)	(b)		(b)		(b)		—		55
Card Member Receivables:
Consumer	22,279		41		24		48		22,392
Small Business	$	17,846	$	59	$	28	$	44	$	17,977
Corporate (a)	(b)		(b)		(b)		$	42	$	13,276

(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.

Credit quality indicators for loans and receivables

The following tables present the key credit quality indicators as of or for the nine months ended September 30:


	2022						2021
	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	0.9	%	1.1	%	0.9	%	1.1	%	1.4	%	0.7	%
Small Business	0.6	%	0.7	%	0.7	%	0.7	%	0.8	%	0.5	%
Card Member Receivables:
Consumer	0.7	%	0.8	%	1.0	%	0.3	%	0.4	%	0.5	%
Small Business	0.9	%	1.0	%	1.3	%	0.3	%	0.4	%	0.6	%
Corporate (d)	(b)		0.3	%	(c)		(b)		(0.1)	%	(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 0.6% and 0.3% as of September 30, 2022 and 2021, respectively.

(d)The net write-off rate for the nine months ended September 30, 2021 includes a $37 million partial recovery in Card Member receivables related to a corporate client bankruptcy, which resulted in a write-off in 2020.

Impaired Card Member loans and receivables

The following tables provide additional information with respect to our impaired loans and receivables as of September 30, 2022 and December 31, 2021:


	As of September 30, 2022
					Accounts Classified as a TDR (c)
2022 (Millions)	Over 90 days Past Due & Accruing Interest(a)		Non- Accruals(b)		In Program(d)		Out of Program(e)		Total Impaired Balance		Reserve for Credit Losses - TDRs
Card Member Loans:
Consumer	$	197	$	110	$	672	$	1,057	$	2,036	$	302
Small Business	38		24		210		372		644		92
Corporate	—		—		—		—		—		—
Card Member Receivables:
Consumer	—		—		204		171		375		13
Small Business	—		—		341		405		746		32
Corporate	—		—		1		6		7		—
Other Loans (f)	3		1		25		1		30		—
Total	$	238	$	135	$	1,453	$	2,012	$	3,838	$	439


	As of December 31, 2021
					Accounts Classified as a TDR (c)
2021 (Millions)	Over 90 days Past Due & Accruing Interest(a)		Non- Accruals(b)		In Program(d)		Out of Program(e)		Total Impaired Balance		Reserve for Credit Losses - TDRs
Card Member Loans:
Consumer	$	149	$	82	$	708	$	997	$	1,936	$	415
Small Business	19		14		176		332		541		132
Corporate	—		—		—		—		—		—
Card Member Receivables:
Consumer	—		—		133		130		263		9
Small Business	—		—		247		297		544		39
Corporate	—		—		1		6		7		—
Other Loans (f)	1		—		67		2		70		1
Total	$	169	$	96	$	1,332	$	1,764	$	3,361	$	596

(a)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. Amounts presented exclude loans classified as a TDR.

(b)Non-accrual loans not in modification programs primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest. Amounts presented exclude loans classified as TDRs.

(c)Accounts classified as a TDR include $45 million and $41 million that are over 90 days past due and accruing interest as of September 30, 2022 and December 31, 2021, respectively, and $14 million and $19 million that are non-accruals as of September 30, 2022 and December 31, 2021, respectively.

(d)In Program TDRs include accounts that are currently enrolled in a modification program.

(e)Out of Program TDRs include $1.9 billion and $1.6 billion of accounts that have successfully completed a modification program and $141 million and $143 million of accounts that were not in compliance with the terms of the modification programs as of September 30, 2022 and December 31, 2021, respectively.

(f)Other loans primarily represent consumer and commercial non-card financing products.

Troubled debt restructurings

The following tables provide additional information with respect to loans and receivables that were modified as TDRs during the three and nine months ended September 30, 2022 and 2021:


	Three Months Ended September 30, 2022					Nine Months Ended September 30, 2022
	Number of Accounts (thousands)	Account Balances (millions)(a)		Average Interest Rate Reduction (% points)	Average Payment Term Extensions (# of months)	Number of Accounts (thousands)	Account Balances (millions)(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extension (# of Months)
Troubled Debt Restructurings:
Card Member Loans	44	$	285	14	(b)	97	$	633	14	(b)
Card Member Receivables	7	258		(c)	20	18	591		(c)	19
Other Loans (d)	1	3		2	16	3	$	5	2	16
Total	52	$	546			118	$	1,229


	Three Months Ended September 30, 2021					Nine Months Ended September 30, 2021
	Number of Accounts (thousands)	Account Balances (millions)(a)		Average Interest Rate Reduction (% points)	Average Payment Term Extensions (# of months)	Number of Accounts (thousands)	Account Balances (millions)(a)		Average Interest Rate Reduction (% Points)	Average Payment Term Extension (# of Months)
Troubled Debt Restructurings:
Card Member Loans	26	$	177	13	(b)	87	$	636	13	(b)
Card Member Receivables	5	114		(c)	17	16	314		(c)	18
Other Loans (d)	1	$	2	3	17	3	$	12	3	16
Total	32	$	293			106	$	962

(a)Represents the outstanding balance immediately prior to modification. The outstanding balance includes 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.

(d)Other loans primarily represent consumer and commercial non-card financing products.

Troubled debt restructurings that subsequently defaulted

The following tables provide information with respect to loans and receivables modified as TDRs that subsequently defaulted within twelve months of modification. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program.


	Three Months Ended September 30, 2022			Nine Months Ended September 30, 2022
	Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default (millions)(a)		Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default (millions)(a)
Troubled Debt Restructurings That Subsequently Defaulted:
Card Member Loans	4	$	18	12	$	70
Card Member Receivables	1	7		3	27
Other Loans (b)	—	—		—	—
Total	5	$	25	15	$	97


	Three Months Ended September 30, 2021			Nine Months Ended September 30, 2021
	Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default (millions)(a)		Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default (millions)(a)
Troubled Debt Restructurings That Subsequently Defaulted:
Card Member Loans	4	$	32	20	$	148
Card Member Receivables	1	10		5	48
Other Loans (b)	1	1		3	$	9
Total	6	$	43	28	$	205

(a)The outstanding balances upon default include principal, fees and accrued interest on loans, and principal and fees on receivables.

(b)Other loans primarily represent consumer and commercial non-card financing products.