Loan Receivables (Tables)

12 Months Ended

Dec. 31, 2023

The Company’s classes of receivables within the two portfolio segments are depicted in the following table (dollars in millions):


	December 31,
	2023		2022
Credit card loans(1)(2)	$	102,259	$	90,113
Other loans(3)
Private student loans(4)	10,352		10,308
Personal loans	9,852		7,998
Other loans	5,946		3,701
Total other loans	26,150		22,007
Total loan receivables	128,409		112,120
Allowance for credit losses	(9,283)		(7,374)
Net loan receivables	$	119,126	$	104,746

(1)Amounts include carrying values of $14.8 billion and $13.5 billion underlying investors’ interest in trust debt at December 31, 2023 and 2022, respectively, and $15.6 billion and $12.2 billion in seller’s interest at December 31, 2023 and 2022, respectively. See Note 5: Credit Card and Private Student Loan Securitization Activities for additional information.

(2)Unbilled accrued interest receivable on credit card loans, which is presented as part of other assets in the Company’s consolidated statements of financial condition, was $753 million and $611 million at December 31, 2023 and 2022, respectively.

(3)Accrued interest receivable on private student, personal and other loans, which is presented as part of other assets in the Company’s consolidated statements of financial condition, was $522 million, $69 million and $21 million, respectively, at December 31, 2023 and $468 million, $49 million and $11 million, respectively, at December 31, 2022.

(4)Private student loans in repayment were $6.3 billion and $6.0 billion at December 31, 2023 and 2022, respectively.

Schedule of Credit Risk Profile by FICO Score and Origination Year

The following table provides the distribution of the amortized cost basis (excluding accrued interest receivable presented in other assets) by the most recent FICO scores available for the Company's customers for credit card, private student and personal loan receivables (dollars in millions):


	Credit Risk Profile by FICO Score
	December 31,
	2023								2022
	660 and Above				Less than 660 or No Score				660 and Above				Less than 660 or No Score
	$		%		$		%		$		%		$		%
Credit card loans	$	82,238	80	%	$	20,021	20	%	$	73,827	82	%	$	16,286	18	%
Private student loans by origination year(1)
2023	$	1,010	94	%	$	69	6	%
2022	1,495		95	%	85		5	%	$	1,172	94	%	$	77	6	%
2021	1,468		94	%	91		6	%	1,668		95	%	81		5	%
2020	1,180		94	%	75		6	%	1,365		95	%	65		5	%
2019	1,039		93	%	76		7	%	1,221		95	%	67		5	%
Prior	3,498		93	%	266		7	%	4,306		94	%	286		6	%
Total private student loans	$	9,690	94	%	$	662	6	%	$	9,732	94	%	$	576	6	%
Personal loans by origination year
2023	$	5,149	98	%	$	100	2	%
2022	2,604		93	%	187		7	%	$	4,270	98	%	$	77	2	%
2021	1,049		92	%	91		8	%	1,958		96	%	91		4	%
2020	355		92	%	29		8	%	790		95	%	40		5	%
2019	169		88	%	22		12	%	444		92	%	38		8	%
Prior	78		80	%	19		20	%	249		86	%	41		14	%
Total personal loans	$	9,404	95	%	$	448	5	%	$	7,711	96	%	$	287	4	%

(1)FICO score represents the higher credit score of the cosigner or borrower.

Schedule of Delinquent Loans by Origination Year

The amortized cost basis (excluding accrued interest receivable presented in other assets) of delinquent loans in the Company’s loan portfolio is shown below for credit card, private student and personal loan receivables (dollars in millions):


	December 31,
	2023						2022
	30-89 Days Delinquent		90 or More Days Delinquent		Total Past Due		30-89 Days Delinquent		90 or More Days Delinquent		Total Past Due
Credit card loans	$	2,038	$	1,917	$	3,955	$	1,250	$	1,028	$	2,278
Private student loans by origination year(1)
2023	$	—	$	—	$	—
2022	7		2		9		$	—	$	—	$	—
2021	18		6		24		6		1		7
2020	20		7		27		14		3		17
2019	24		9		33		19		5		24
Prior	132		46		178		128		36		164
Total private student loans	$	201	$	70	$	271	$	167	$	45	$	212
Personal loans by origination year
2023	$	26	$	8	$	34
2022	44		16		60		$	12	$	3	$	15
2021	20		8		28		15		6		21
2020	7		2		9		8		2		10
2019	5		2		7		6		2		8
Prior	2		3		5		6		3		9
Total personal loans	$	104	$	39	$	143	$	47	$	16	$	63

(1)Private student loans may include a deferment period, during which borrowers are not required to make payments while enrolled in school at least half time as determined by the school. During a deferment period, these loans do not advance into delinquency.

Schedule of Changes in the Allowance for Credit Losses

The following tables provide changes in the Company’s allowance for credit losses (dollars in millions):


	For the Year Ended December 31, 2023
	Credit Card Loans		Private Student Loans		Personal Loans		Other Loans		Total Loans
Balance at December 31, 2022	$	5,883	$	839	$	595	$	57	$	7,374
Cumulative effect of ASU No. 2022-02 adoption(1)	(66)		—		(2)		—		(68)
Balance at January 1, 2023	5,817		839		593		57		7,306
Additions
Provision for credit losses(2)	5,476		152		363		28		6,019
Deductions
Charge-offs	(4,481)		(155)		(290)		(1)		(4,927)
Recoveries	807		22		56		—		885
Net charge-offs	(3,674)		(133)		(234)		(1)		(4,042)

Balance at December 31, 2023	$	7,619	$	858	$	722	$	84	$	9,283

	For the Year Ended December 31, 2022
	Credit Card Loans		Private Student Loans		Personal Loans		Other Loans		Total Loans
Balance at December 31, 2021	$	5,273	$	843	$	662	$	44	$	6,822
Additions
Provision for credit losses(2)	2,233		99		24		13		2,369
Deductions
Charge-offs	(2,417)		(126)		(159)		—		(2,702)
Recoveries	794		23		68		—		885
Net charge-offs	(1,623)		(103)		(91)		—		(1,817)

Balance at December 31, 2022	$	5,883	$	839	$	595	$	57	$	7,374

	For the Year Ended December 31, 2021
	Credit Card Loans		Private Student Loans		Personal Loans		Other Loans		Total Loans
Balance at December 31, 2020	$	6,491	$	840	$	857	$	38	$	8,226


Additions
Provision for credit losses(2)	229		67		(75)		6		227
Deductions
Charge-offs	(2,255)		(89)		(190)		—		(2,534)
Recoveries	808		25		70		—		903
Net charge-offs	(1,447)		(64)		(120)		—		(1,631)

Balance at December 31, 2021	$	5,273	$	843	$	662	$	44	$	6,822

(1)Represents the adjustment to the allowance for credit losses as a result of the adoption of ASU No. 2020-02 on January 1, 2023, which eliminated the requirement to apply discounted cash flow measurements for certain troubled debt restructurings.

(2)Excludes a $1 million, $10 million and $9 million adjustment to the liability for expected credit losses on unfunded commitments for the years ended December 31, 2023, 2022 and 2021, respectively, as the liability is recorded in accrued expenses and other liabilities in the Company’s consolidated statements of financial condition.

Schedule of Net Charge-offs of Interest and Fee Revenues on Loan Receivables

Net charge-offs of principal are recorded against the allowance for credit losses, as shown in the preceding table. Information regarding net charge-offs of interest and fee revenues on credit card and other loans is as follows (dollars in millions):


	For the Years Ended December 31,
	2023		2022		2021
Interest and fees accrued subsequently charged off, net of recoveries (recorded as a reduction of interest income)	$	681	$	303	$	286
Fees accrued subsequently charged off, net of recoveries (recorded as a reduction to other income)	$	192	$	100	$	75

Schedule of Gross Charge Offs from Loan Receivables

Gross principal charge-offs of the Company's loan portfolio are presented in the table below, on a year-to-date basis, for credit card, private student and personal loan receivables (dollars in millions):


	For the Twelve Months Ended December 31, 2023
Credit card loans	$	4,481
Private student loans by origination year
2023	$	—
2022	4
2021	17
2020	21
2019	24
Prior	89
Total private student loans	$	155
Personal loans by origination year
2023	$	19
2022	119
2021	81
2020	33
2019	24
Prior	14
Total personal loans	$	290

Schedule of Delinquent and Non-Accruing Loans

The amortized cost basis (excluding accrued interest receivable presented in other assets) of delinquent and non-accruing loans in the Company’s loan portfolio is shown below for each class of loan receivables (dollars in millions):(1)


	30-89 Days Delinquent		90 or More Days Delinquent		Total Past Due		90 or More Days Delinquent and Accruing		Total Non-accruing(2)
December 31, 2023
Credit card loans	$	2,038	$	1,917	$	3,955	$	1,881	$	197
Other loans
Private student loans	201		70		271		69		8
Personal loans	104		39		143		37		11
Other loans	39		19		58		3		53
Total other loans	344		128		472		109		72
Total loan receivables	$	2,382	$	2,045	$	4,427	$	1,990	$	269

December 31, 2022
Credit card loans	$	1,250	$	1,028	$	2,278	$	1,003	$	176
Other loans
Private student loans	167		45		212		45		8
Personal loans	47		16		63		16		7
Other loans	13		12		25		1		23
Total other loans	227		73		300		62		38
Total loan receivables	$	1,477	$	1,101	$	2,578	$	1,065	$	214

(1)The payment status of both modified and unmodified loans is included in this table.

(2)The Company estimates that the gross interest income that would have been recorded under the original terms of non-accruing credit card loans was $37 million, $23 million and $28 million for the years ended December 31, 2023, 2022 and 2021, respectively. The Company does not separately track the amount of gross interest income that would have been recorded under the original terms of loans. Instead, the Company estimated this amount based on customers’ current balances and most recent interest rates.

Schedule of Loans in Modification Programs, Amortized Cost Basis

The following table provides the period-end amortized cost basis, by modification category, of loans to borrowers experiencing financial difficulty that entered a modification program during the period (dollars in millions). Some of the loans presented in the table below may no longer be enrolled in a program at period-end:


	For the Twelve Months Ended December 31,
		2023
Credit card loans(1)(2)
Interest rate reduction		$	2,330
Total credit card loans(3)		$	2,330
% of total class of financing receivables		2.28		%

Private student loans(1)
Payment delay(4)		$	33
Interest rate reduction and payment delay(4)		143
Total private student loans(3)		$	176
% of total class of financing receivables		1.70		%

Personal loans(1)
Payment delay(4)		$	10
Term extension(5)		29
Interest rate reduction and payment delay(4)		65
Interest rate reduction and term extension(5)		29
Total personal loans(3)		$	133
% of total class of financing receivables		1.35		%

(1) Accrued interest receivable (including unbilled accrued interest receivable for credit card loans) on modified loans to borrowers experiencing financial difficulty, which is presented as part of other assets in the Company's condensed consolidated statements of financial condition, was immaterial at December 31, 2023.

(2) Accounts that entered a credit card loan modification program include $408 million that were converted from revolving line-of-credit arrangements to term loans during the year ended December 31, 2023.

(3) For settlements, the amortized cost basis is zero at period-end and therefore there is no amount reported for principal forgiveness in the table above. See financial effects table below for principal forgiveness to borrowers experiencing financial difficulty.

(4) The Company defines a payment delay as a temporary reduction in payments below the original contractually required payment amounts (e.g., interest only payments). The Company's credit card loan modification programs do not result in an other than insignificant delay in payment.

(5) The Company defines term extensions as only those modifications for which the maturity date is extended beyond the original contractual maturity date by virtue of a change in terms other than a payment delay as defined above. Modifications to credit card loans are not considered term extensions because credit card loans do not have a fixed repayment term.

Schedule of Loan Modifications Effects

The following table provides information on the financial effects of loan modifications to borrowers experiencing financial difficulty, by modification type, made during the period (dollars in millions):


	For the Twelve Months Ended December 31,
		2023
Credit card loans
Weighted-average interest rate reduction		13.85		%
Principal forgiven		$	121
Interest and fees forgiven(1)		$	117

Private student loans
Weighted-average interest rate reduction		8.91		%
Payment delay duration (in months)(2)		6 to 12
Principal forgiven		$	—

Personal loans
Weighted-average interest rate reduction		12.28		%
Weighted-average term extension (in months)		39
Payment delay duration (in months)(2)		6 to 12
Principal forgiven		$	—

(1) Represents the amount of interest and fees forgiven resulting from accounts entering into a credit card loan modification program and pre-charge off settlements. Interest and fees forgiven are reversed against the respective line items in the consolidated statements of income.

(2) During 2023, private student loan payment delays were offered up to six consecutive months at one time with a lifetime usage cap, most commonly, of 12 months. For personal loan payment delays, the Company limits this assistance to a life of loan maximum of 12 months.

Financing Receivable, Modified, Past Due

The following table presents the payment status and period-end amortized cost basis, by class of loan receivable, of loans that were modified on or after January 1, 2023 to borrowers experiencing financial difficulty (dollars in millions):(1)


	Current		30-89 Days Delinquent		90 or More Days Delinquent
At December 31, 2023
Credit card loans	$	1,882	$	252	$	196
Private student loans	147		18		8
Personal loans	109		20		4
Total	$	2,138	$	290	$	208

(1) This table includes any loan that entered a modification program during the period without regard to whether it remained in a modification program as of the reporting date.

Financing Receivable, Modified, Subsequent Default

The following table presents the defaulted amount and period-end amortized cost basis, by modification category, of loans that defaulted during the period and were modified on or after January 1, 2023 through the end of the reporting period to borrowers experiencing financial difficulty (dollars in millions):




















	For the Twelve Months Ended December 31, 2023
		Defaulted Amount(1)		Period-end Amortized Cost Basis
Credit card loans
Interest rate reduction		$	383	$	210
Total credit card loans		$	383	$	210

Private student loans
Payment delay		$	5	$	4
Interest rate reduction and payment delay		20		17
Total private student loans		$	25	$	21

Personal loans
Payment delay		$	2	$	1
Term extension		4		2
Interest rate reduction and payment delay		10		2
Interest rate reduction and term extension		7		3
Total personal loans		$	23	$	8

(1)For purposes of this disclosure, a loan is considered to be defaulted when it is 60 days or more delinquent at month end and has advanced two stages of delinquency subsequent to modification. Loans that entered a modification program in any stage of delinquency but did not experience a further payment default are included in the payment status table above but are not counted as defaulted for purposes of this disclosure.

Schedule of Loans That Entered a Modification Program During the Period

The following table provides information on loans that entered a TDR program during the period (dollars in millions):


	For the Year Ended December 31, 2022
		Number of Accounts	Balances
Accounts that entered a TDR program during the period
Credit card loans(1)		237,339	$	1,545
Private student loans		6,841	$	127
Personal loans		6,303	$	86

(1)Accounts that entered a credit card TDR program include $322 million that were converted from revolving line-of-credit arrangements to term loans during the year ended December 31, 2022.

Schedule of Troubled Debt Restructurings That Subsequently Defaulted

The following table presents the carrying value of loans that experienced a default during the period that had been modified in a TDR during the 15 months preceding the end of each period (dollars in millions):


	For the Year Ended December 31, 2022
		Number of Accounts	Aggregated Outstanding Balances Upon Default
TDRs that subsequently defaulted
Credit card loans(1)(2)		28,231	$	141
Private student loans(3)		1,145	$	22
Personal loans(2)		1,140	$	20

(1)For credit card loans that default from a temporary loan modification program, accounts revert back to the pre-modification terms and charging privileges remain suspended in most cases.

(2)For credit card loans and personal loans, a customer defaults from a loan modification program after either two consecutive missed payments or at charge-off, depending on the program. The outstanding balance upon default is generally the loan balance at the end of the month prior to default.

(3)For student loans, a customer defaults from a loan modification after they are 60 or more days delinquent. The outstanding balance upon default is generally the loan balance at the end of the month prior to default.

Schedule of Geographic Distribution of Loan Receivables

The Company originated credit card loans throughout the U.S. The geographic distribution of the Company’s credit card loan receivables was as follows (dollars in millions):


	December 31,
	2023				2022
	$		%		$		%
Texas	$	9,150	8.9	%	$	7,996	8.9	%
California	9,078		8.9		7,888		8.7
Florida	7,496		7.3		6,465		7.2
New York	6,538		6.4		5,895		6.5
Illinois	5,012		4.9		4,528		5.0
Pennsylvania	4,985		4.9		4,484		5.0
Ohio	4,188		4.1		3,759		4.2
New Jersey	3,499		3.4		3,127		3.5
Georgia	3,294		3.2		2,849		3.2
Michigan	2,821		2.8		2,521		2.8
Other	46,198		45.2		40,601		45.0
Total credit card loans	$	102,259	100.0	%	$	90,113	100.0	%

The Company originated private student, personal and other loans throughout the U.S. The geographic distribution of private student, personal and other loan receivables was as follows (dollars in millions):


	December 31,
	2023				2022
	$		%		$		%
California	$	2,449	9.4	%	$	2,015	9.2	%
New York	2,074		7.9		1,900		8.6
Texas	1,987		7.6		1,595		7.2
Florida	1,607		6.1		1,248		5.7
Pennsylvania	1,567		6.0		1,431		6.5
Illinois	1,405		5.4		1,247		5.7
New Jersey	1,285		4.9		1,114		5.1
Ohio	975		3.7		849		3.9
Georgia	851		3.3		647		3.0
Virginia	778		3.0		654		2.8
Other	11,172		42.7		9,307		42.3
Total other loans	$	26,150	100.0	%	$	22,007	100.0	%