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Allowance for Credit Losses and Reserve for Unfunded Lending Commitments (Tables)
 6 Months Ended
Jun. 30, 2022
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 three and six months ended June 30, 2022 and 2021. Our allowance for credit losses increased by $61 million to $11.5 billion as of June 30, 2022 from December 31, 2021.
Table 4.1: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity
Three Months Ended June 30, 2022
(Dollars in millions)Credit CardConsumer BankingCommercial BankingTotal
Allowance for credit losses:
Balance as of March 31, 2022$8,280 $1,902 $1,126 $11,308 
Charge-offs
(1,009)(331)(43)(1,383)
Recoveries(1)
331 195 12 538 
Net charge-offs(678)(136)(31)(845)
Provision (benefit) for credit losses581 281 183 1,045 
Allowance build (release) for credit losses(97)145 152 200 
Other changes(2)
(17)0 0 (17)
Balance as of June 30, 20228,166 2,047 1,278 11,491 
Reserve for unfunded lending commitments:
Balance as of March 31, 20220 0 200 200 
Provision for losses on unfunded lending commitments0 0 39 39 
Balance as of June 30, 20220 0 239 239 
Combined allowance and reserve as of June 30, 2022$8,166 $2,047 $1,517 $11,730 
Six Months Ended June 30, 2022
(Dollars in millions)Credit CardConsumer BankingCommercial BankingTotal
Allowance for credit losses:
Balance as of December 31, 2021$8,345 $1,918 $1,167 $11,430 
Charge-offs
(1,964)(680)(60)(2,704)
Recoveries(1)
679 398 15 1,092 
Net charge-offs(1,285)(282)(45)(1,612)
Provision (benefit) for credit losses1,126 411 156 1,693 
Allowance build (release) for credit losses(159)129 111 81 
Other changes(2)
(20)0 0 (20)
Balance as of June 30, 20228,166 2,047 1,278 11,491 
Reserve for unfunded lending commitments:
Balance as of December 31, 20210 0 165 165 
Provision for losses on unfunded lending commitments0 0 74 74 
Balance as of June 30, 20220 0 239 239 
Combined allowance and reserve as of June 30, 2022$8,166 $2,047 $1,517 $11,730 
Three Months Ended June 30, 2021
(Dollars in millions)Credit CardConsumer BankingCommercial BankingTotal
Allowance for credit losses:
Balance as of March 31, 2021$10,072 $2,498 $1,447 $14,017 
Charge-offs
(967)(260)(8)(1,235)
Recoveries(1)
396 271 27 694 
Net recoveries (charge-offs)(571)11 19 (541)
Provision (benefit) for credit losses(635)(306)(196)(1,137)
Allowance build (release) for credit losses(1,206)(295)(177)(1,678)
Other changes(2)
7 0 0 7 
Balance as of June 30, 20218,873 2,203 1,270 12,346 
Reserve for unfunded lending commitments:
Balance as of March 31, 20210 0 187 187 
Provision (benefit) for losses on unfunded lending commitments0 0 (23)(23)
Balance as of June 30, 20210 0 164 164 
Combined allowance and reserve as of June 30, 2021$8,873 $2,203 $1,434 $12,510 
Six Months Ended June 30, 2021
(Dollars in millions)Credit CardConsumer BankingCommercial BankingTotal
Allowance for credit losses:
Balance as of December 31, 2020$11,191 $2,715 $1,658 $15,564 
Charge-offs
(1,960)(602)(27)(2,589)
Recoveries(1)
756 522 30 1,308 
Net recoveries (charge-offs)(1,204)(80)3 (1,281)
Provision (benefit) for credit losses(1,127)(432)(391)(1,950)
Allowance build (release) for credit losses(2,331)(512)(388)(3,231)
Other changes(2)
13 0 0 13 
Balance as of June 30, 20218,873 2,203 1,270 12,346 
Six Months Ended June 30, 2021
(Dollars in millions)Credit CardConsumer BankingCommercial BankingTotal
Reserve for unfunded lending commitments:
Balance as of December 31, 20200 0 195 195 
Provision (benefit) for losses on unfunded lending commitments0 0 (31)(31)
Balance as of June 30, 20210 0 164 164 
Combined allowance and reserve as of June 30, 2021$8,873 $2,203 $1,434 $12,510 
__________
(1)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.
(2)Represents foreign currency translation adjustments.
Schedule of Loss Sharing Arrangement Impact
The table below summarizes the changes in the estimated reimbursements from these partners for the three and six months ended June 30, 2022 and 2021.
Table 4.2: Summary of Credit Card Partnership Loss Sharing Arrangements Impacts
Three Months Ended June 30,
(Dollars in millions)20222021
Estimated reimbursements from partners, beginning of period$1,366 $2,005 
Amounts due from partners which reduced net charge-offs(119)(128)
Amounts expected to become due from (to) partners which reduced (increased) provision for credit losses55 (166)
Estimated reimbursements from partners, end of period$1,302 $1,711 
Six Months Ended June 30,
(Dollars in millions)20222021
Estimated reimbursements from partners, beginning of period$1,450 $2,159 
Amounts due from partners which reduced net charge-offs(226)(269)
Amounts expected to become due from (to) partners which reduced (increased) provision for credit losses78 (179)
Estimated reimbursements from partners, end of period$1,302 $1,711