v3.25.2
Loan Receivables and Allowance for Credit Losses
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Loan Receivables and Allowance for Credit Losses LOAN RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES
($ in millions)June 30, 2025December 31, 2024
Credit cards$92,036 $96,818 
Consumer installment loans5,669 5,971 
Commercial credit products1,980 1,826 
Other 91 106 
Total loan receivables, before allowance for credit losses(a)(b)(c)
$99,776 $104,721 
_______________________
(a)Total loan receivables include $21.2 billion and $21.3 billion of restricted loans of consolidated securitization entities at June 30, 2025 and December 31, 2024, respectively. See Note 6. Variable Interest Entities for further information.
(b)At June 30, 2025 and December 31, 2024, loan receivables included deferred costs, net of purchase discounts and deferred income of $(156) million and $(212) million, respectively.
(c)At June 30, 2025 and December 31, 2024, $19.9 billion and $20.7 billion, respectively, of loan receivables were pledged by the Bank as collateral to the Federal Reserve to secure Federal Reserve discount window advances.
Loan Receivables Held for Sale
During the second quarter of 2025, we entered into an agreement to sell loan receivables associated with one of our retailer program agreements. As a result, at June 30, 2025, these loan receivables are classified as loan receivables held for sale on our Condensed Consolidated Statement of Financial Position. The sale of the portfolio, which is subject to customary closing conditions, is expected to be completed in the fourth quarter of 2025.
Allowance for Credit Losses(a)
 ($ in millions)Balance at
April 1, 2025
Provision charged to operations(b)
Gross charge-offsRecoveries
Other
Balance at
June 30, 2025
Credit cards$10,133 $1,077 $(1,674)$370 $— $9,906 
Consumer installment loans584 38 (92)15 — 545 
Commercial credit products110 32 (33)3 — 112 
Other1 — — — — 1 
Total$10,828 $1,147 $(1,799)$388 $— $10,564 
($ in millions)Balance at
April 1, 2024
Provision charged to operations(b)
Gross charge-offsRecoveries
Other
Balance at
June 30, 2024
Credit cards$10,194 $1,547 $(1,832)$339 $7 $10,255 
Consumer installment loans581 113 (107)15 — 602 
Commercial credit products127 31 (37)2 — 123 
Other3 — (1)— — 2 
Total$10,905 $1,691 $(1,977)$356 $7 $10,982 
 ($ in millions)Balance at
January 1, 2025
Provision charged to operations(b)
Gross charge-offsRecoveriesOtherBalance at
June 30, 2025
Credit cards$10,259 $2,413 $(3,496)$730 $— $9,906 
Consumer installment loans542 173 (202)32 — 545 
Commercial credit products127 48 (68)5 — 112 
Other1 — — — — 1 
Total$10,929 $2,634 $(3,766)$767 $— $10,564 
($ in millions)Balance at
January 1, 2024
Provision charged to operations(b)
Gross charge-offsRecoveries
Other(c)
Balance at
June 30, 2024
Credit cards$10,156 $3,055 $(3,593)$630 $7 $10,255 
Consumer installment loans279 458 (197)23 39 602 
Commercial credit products131 6 (72)4 — 123 
Other5 (2)(1)— — 2 
Total$10,571 $3,517 $(3,863)$657 $46 $10,982 
_______________________
(a)Excluded from the table above are allowance for credit losses for loan receivables acquired and immediately written off within the period presented.
(b)Provision for credit losses in our Condensed Consolidated Statements of Earnings also includes amounts associated with off-balance sheet credit exposures recorded in Accrued expenses and other liabilities in the Condensed Consolidated Statements of Financial Position.
(c)Primarily represents allowance for credit losses for purchased credit deteriorated assets.
The reasonable and supportable forecast period used in our estimate of credit losses at June 30, 2025 was 12 months, consistent with the forecast period utilized since the adoption of CECL. Beyond the reasonable and supportable forecast period, we revert to historical loss information at the loan receivables segment level over a 6-month period, and utilize historical loss information thereafter for the remaining life of the portfolio.
Losses on loan receivables, including those which are modified for borrowers experiencing financial difficulty, are estimated and recognized upon origination of the loan, based on expected credit losses for the life of the loan balance at June 30, 2025. Expected credit loss estimates are developed using both quantitative models and qualitative adjustments, and incorporates a macroeconomic forecast. The current and forecasted economic conditions at the balance sheet date are reflected in our current estimate of expected credit losses, which includes consideration of the decrease in both loan receivables and delinquent balances as a percentage of loan receivables, compared to the prior year period, as well as expectations of the macroeconomic environment. Our allowance for credit losses decreased to $10.6 billion during the six months ended June 30, 2025, primarily reflecting these conditions. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies for additional information on our significant accounting policies related to our allowance for credit losses at June 30, 2025, and Note 2. Basis of Presentation and Summary of Significant Accounting Policies to our 2024 annual consolidated financial statements within our 2024 Form 10-K, for additional information on our significant accounting policies related to our allowance for credit losses at December 31, 2024.
Delinquent and Non-accrual Loans
The following table provides information on our delinquent and non-accrual loan receivables:
At June 30, 2025 ($ in millions)30-89 days delinquent90 or more days delinquentTotal past due90 or more days delinquent and accruingTotal non-accruing
Credit cards$1,960 $1,995 $3,955 $1,995 $— 
Consumer installment loans117 26 143 — 26 
Commercial credit products37 38 75 38 — 
Total delinquent loans$2,114 $2,059 $4,173 $2,033 $26 
Percentage of total loan receivables2.1 %2.1 %4.2 %2.0 %— %
At December 31, 2024 ($ in millions)30-89 days delinquent90 or more days delinquentTotal past due90 or more days delinquent and accruingTotal non-accruing
Credit cards$2,229 $2,431 $4,660 $2,431 $— 
Consumer installment loans139 39 178 — 39 
Commercial credit products45 42 87 42 — 
Total delinquent loans$2,413 $2,512 $4,925 $2,473 $39 
Percentage of total loan receivables2.3 %2.4 %4.7 %2.4 %— %

Credit Quality Indicators
Our loan receivables portfolio includes both secured and unsecured loans. Secured loan receivables are largely comprised of consumer installment loans secured by equipment. Unsecured loan receivables are largely comprised of our open-ended consumer and commercial revolving credit card loans. As part of our credit risk management activities, on an ongoing basis, we assess overall credit quality by reviewing information related to the performance of a customer’s account with us, including delinquency information, as well as information from credit bureaus relating to the customer’s broader credit performance. We utilize VantageScore credit data and scores to assist in our assessment of credit quality. VantageScore credit data and scores are obtained at origination of the account and are refreshed, at a minimum quarterly, but could be as often as weekly, to assist in predicting customer behavior. We categorize these credit scores into the following three credit score categories: (i) 651 or higher, which are considered the strongest credits; (ii) 591 to 650, considered moderate credit risk; and (iii) 590 or less, which are considered weaker credits. There are certain customer accounts, including for our commercial credit products, for which a VantageScore credit score may not be available where we use alternative sources to assess their credit quality and predict behavior. The following table provides the most recent VantageScore credit scores, or equivalent, available for our revolving credit card and commercial credit product customers at June 30, 2025, December 31, 2024 and June 30, 2024, respectively, as a percentage of each class of loan receivable. The table below excludes 0.3% of our total loan receivables balance for our credit cards and commercial credit products at each of June 30, 2025, December 31, 2024 and June 30, 2024, which represents those customer accounts for which a VantageScore credit score, or equivalent, is not available.
June 30, 2025December 31, 2024June 30, 2024
651 or591 to590 or651 or591 to590 or651 or591 to590 or
higher650 lesshigher650 lesshigher650 less
Credit cards74 %18 %8 %73 %19 %8 %73 %19 %8 %
Commercial credit products 83 %11 %6 %83 %7 %10 %84 %7 %9 %
Consumer Installment Loans
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. The tables below include information on our consumer installment loans by origination year.
Consumer Installment Loans by Origination Year
By origination year
At June 30, 2025 ($ in millions)
2025
2024202320222021PriorTotal
Amortized cost basis$1,094 $1,950 $1,376 $805 $320 $124 $5,669 
30-89 days delinquent$11 $37 $33 $23 $9 $4 $117 
90 or more days delinquent$2 $9 $7 $5 $2 $1 $26 

By origination year
At December 31, 2024 ($ in millions)
2024
2023202220212020PriorTotal
Amortized cost basis$2,581 $1,761 $1,005 $424 $166 $34 $5,971 
30-89 days delinquent$47 $44 $30 $12 $5 $1 $139 
90 or more days delinquent$13 $13 $9 $3 $1 $— $39 

Gross Charge-offs for Consumer Installment Loans by Origination Year
By origination year
For the six months ended ($ in millions)
2025
2024202320222021PriorTotal
June 30, 2025
$1 $71 $66 $44 $14 $6 $202 
June 30, 2024
$— $5 $97 $59 $24 $12 $197 
Loan Modifications to Borrowers Experiencing Financial Difficulty
The following tables provides information on our loan modifications made to borrowers experiencing financial difficulty during the periods presented, which do not include loans that are classified as loan receivables held for sale:
Three months ended June 3020252024
($ in millions)
Amount
% of Total Class of Loan Receivables
Amount
% of Total Class of Loan Receivables
Long-term modifications
Credit cards$383 0.4 %$409 0.4 %
Consumer installment loans— — %— — %
Commercial credit products2 0.1 %2 0.1 %
Short-term modifications
Credit cards206 0.2 %226 0.2 %
Consumer installment loans— — %— — %
Commercial credit products— — %1 — %
Total$591 0.6 %$638 0.6 %
Six months ended June 3020252024
($ in millions)
Amount(a)
% of Total Class of Loan Receivables
Amount
% of Total Class of Loan Receivables
Long-term modifications
Credit cards$822 0.9 %$880 0.9 %
Consumer installment loans— — %— — %
Commercial credit products5 0.3 %4 0.2 %
Short-term modifications
Credit cards461 0.5 %473 0.5 %
Consumer installment loans— — %— — %
Commercial credit products1 — %1 — %
Total$1,289 1.3 %$1,358 1.3 %
_______________________
(a)Represents balance at enrollment date. Long-term and short-term loan modifications made to borrowers for the six months ended June 30, 2025 had amortized cost balances at June 30, 2025 of $732 million and $124 million, respectively.
Financial Effects of Loan Modifications to Borrowers Experiencing Financial Difficulty
As part of our loan modifications to borrowers experiencing financial difficulty, we may provide multiple concessions to minimize our economic loss and improve long-term loan performance and collectability. For long-term modifications made in the three and six months ended June 30, 2025 and 2024, the financial effect of these modifications reduced the weighted-average interest rates by 97% for all periods presented. For short-term modifications made in the three months ended June 30, 2025 and 2024, unpaid balances of $13 million and $15 million, respectively, were forgiven related to borrowers who successfully exited the program. For short-term modifications made in the six months ended June 30, 2025 and 2024, unpaid balances of $118 million and $114 million, respectively, were forgiven related to borrowers who successfully exited the program. Additionally, beginning in late 2024, for borrowers that newly enroll in our short-term loan modification programs, we no longer charge interest and penalty fees during the term of the program and also typically waive accrued and unpaid interest and fees at the time of enrollment.
Performance of Loans Modified to Borrowers Experiencing Financial Difficulty
The following tables provide information on the performance of loans modified to borrowers experiencing financial difficulty which have been modified within the previous 12 months from the applicable balance sheet date and remained in a modification program at June 30, 2025 and 2024, respectively:
Amortized cost basis
At June 30, 2025 ($ in millions)Current30-89 days delinquent90 or more days delinquent
Total past due(a)
Long-term modifications
Credit cards$997 $148 $117 $265 
Consumer installment loans— — — — 
Commercial credit products4 1 1 2 
Short-term modifications
Credit cards56 30 38 68 
Consumer installment loans— — — — 
Commercial credit products— — — — 
Total delinquent modified loans$1,057 $179 $156 $335 
Percentage of total loan receivables1.1 %0.2 %0.2 %0.3 %
Amortized cost basis
At June 30, 2024 ($ in millions)Current30-89 days delinquent90 or more days delinquent
Total past due(a)
Long-term modifications
Credit cards$993 $157 $133 $290 
Consumer installment loans— — — — 
Commercial credit products3 1 1 2 
Short-term modifications
Credit cards67 36 45 81 
Consumer installment loans— — — — 
Commercial credit products— — — — 
Total delinquent modified loans$1,063 $194 $179 $373 
Percentage of total loan receivables1.0 %0.2 %0.2 %0.4 %
___________________
(a)    Once a loan has been modified, it only returns to current status if the borrower pays the total minimum payment due or if the loan is re-aged after three consecutive monthly program payments are received post the modification date.
Payment Defaults
The following tables present the type, number and amount of loans to borrowers experiencing financial difficulty that enrolled in a long-term modification program within the previous 12 months from the applicable balance sheet date, and experienced a payment default and charged-off during the period presented:
Three months ended June 3020252024
($ in millions, accounts in thousands)Accounts defaultedLoans defaultedAccounts defaultedLoans defaulted
Credit cards36 $103 34 $96 
Consumer installment loans— — — — 
Commercial credit products— 1 1 1 
Total36 $104 35 $97 
Six months ended June 3020252024
($ in millions, accounts in thousands)Accounts defaultedLoans defaultedAccounts defaultedLoans defaulted
Credit cards67 $190 81 $214 
Consumer installment loans— — — — 
Commercial credit products— 1 1 2 
Total67 $191 82 $216 
Of the loans modified to borrowers experiencing financial difficulty that enrolled in a short-term modification program within the previous 12 months from the applicable balance sheet date, 63% and 56% had fully completed all required payments and successfully exited the program during the six months ended June 30, 2025 and 2024, respectively.
Unfunded Lending Commitments
We manage the potential risk in credit commitments by limiting the total amount of credit, both by individual customer and in total, by monitoring the size and maturity of our portfolios and by applying a consistent underwriting approach for all of our credit products. Unused credit card lines available to our customers totaled approximately $435 billion and $433 billion at June 30, 2025 and December 31, 2024, respectively. While these amounts represented the total available unused credit card lines, we have not experienced and do not anticipate that all of our customers will access their entire available line at any given point in time.
Interest Income by Product
The following table provides additional information about our interest and fees on loans, including merchant discounts, from our loan receivables, including held for sale:
Three months ended June 30,Six months ended June 30,
($ in millions)2025202420252024
Credit cards(a)
$5,076 $5,013 $10,131 $10,109 
Consumer installment loans207 243 418 392 
Commercial credit products43 43 88 88 
Other2 2 3 5 
Total(b)
$5,328 $5,301 $10,640 $10,594 
_______________________
(a)Interest income on credit cards that was reversed related to accrued interest receivables written off was $578 million and $595 million for the three months ended June 30, 2025 and 2024, respectively, and $1.2 billion for both the six months ended June 30, 2025 and 2024, respectively.
(b)Deferred merchant discounts to be recognized in interest income at both June 30, 2025 and December 31, 2024, were $1.7 billion and $1.8 billion, respectively, which are included in Accrued expenses and other liabilities in our Condensed Consolidated Statements of Financial Position.