v3.26.3
Loan Receivables and Allowance for Credit Losses
 9 Months Ended
Sep. 30, 2026
Receivables [Abstract]  
Loan Receivables and Allowance for Credit Losses LOAN RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES
($ in millions)September 30, 2026December 31, 2025
Credit cards$95,526 $96,346 
Consumer installment loans5,109 5,548 
Commercial credit products2,644 1,833 
Other 67 81 
Total loan receivables, before allowance for credit losses(a)(b)(c)
$103,346 $103,808 
_______________________
(a)Total loan receivables include $21.9 billion and $22.4 billion of restricted loans of consolidated securitization entities at September 30, 2026 and December 31, 2025, respectively. See Note 5. Variable Interest Entities for further information.
(b)At September 30, 2026 and December 31, 2025, loan receivables included deferred costs, net of purchase discounts and deferred income, of $25 million and $(53) million, respectively.
(c)At September 30, 2026 and December 31, 2025, $18.4 billion and $18.3 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 Acquired
In April 2026, we completed our acquisition of the Lowe's commercial co-branded credit card portfolio, comprising $0.7 billion of outstanding loan receivables. This transaction was accounted for as an asset purchase.
Allowance for Credit Losses
 ($ in millions)Balance at
July 1, 2026		Provision charged to operationsGross charge-offsRecoveriesOtherBalance at
September 30, 2026
Credit cards$9,610 $1,195 $(1,532)$399 $— $9,672 
Consumer installment loans491 55 (84)13 — 475 
Commercial credit products210 15 (36)4 — 193 
Other1 — — — — 1 
Total$10,312 $1,265 $(1,652)$416 $— $10,341 
($ in millions)Balance at
July 1, 2025
Provision charged to operations(a)
Gross charge-offsRecoveries
Other
Balance at
September 30, 2025
Credit cards$9,906 $964 $(1,553)$356 $6 $9,679 
Consumer installment loans545 102 (91)17 — 573 
Commercial credit products112 34 (29)3 — 120 
Other1 1 (1)— — 1 
Total$10,564 $1,101 $(1,674)$376 $6 $10,373 
    
 ($ in millions)Balance at
January 1, 2026
Provision charged to operations(a)
Gross charge-offsRecoveries
Other(b)
Balance at
September 30, 2026
Credit cards$9,789 $3,485 $(4,827)$1,225 $— $9,672 
Consumer installment loans543 182 (295)45 — 475 
Commercial credit products109 131 (104)10 47 193 
Other1 — — — — 1 
Total$10,442 $3,798 $(5,226)$1,280 $47 $10,341 
($ in millions)Balance at
January 1, 2025
Provision charged to operations(a)
Gross charge-offsRecoveriesOtherBalance at
September 30, 2025
Credit cards$10,259 $3,377 $(5,049)$1,086 $6 $9,679 
Consumer installment loans542 275 (293)49 — 573 
Commercial credit products127 82 (97)8 — 120 
Other1 1 (1)— — 1 
Total$10,929 $3,735 $(5,440)$1,143 $6 $10,373 
_______________________
(a)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 our Condensed Consolidated Statements of Financial Position.
(b)Primarily represents allowance for credit losses associated with a loan portfolio purchase completed in the nine months ended September 30, 2026, previously recorded in Accrued expenses and other liabilities in our Condensed Consolidated Statements of Financial Position.
The reasonable and supportable forecast period used in our estimate of credit losses at September 30, 2026 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 on a straight-line basis, 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, and updated based on expected credit losses for the life of the loan balance at the period end date. Expected credit loss estimates are developed using both quantitative models and qualitative adjustments, and incorporate a macroeconomic forecast. The current and forecasted economic conditions at the balance sheet date are reflected in our current estimate of expected credit losses, as well as expectations of the macroeconomic environment. Our allowance for credit losses decreased to $10.3 billion at September 30, 2026, as compared to $10.4 billion at December 31, 2025, reflecting continued asset quality trends during the nine months ended September 30, 2026. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies to our 2025 annual consolidated financial statements within our 2025 Form 10-K, for additional information on our significant accounting policies related to our allowance for credit losses.
Delinquent and Non-accrual Loans    
The following tables provide information on our delinquent and non-accrual loan receivables:
At September 30, 2026 ($ in millions)30-89 days delinquent90 or more days delinquentTotal past due90 or more days delinquent and accruingTotal non-accruing
Credit cards$2,170 $2,058 $4,228 $2,058 $— 
Consumer installment loans127 32 159 — 32 
Commercial credit products55 40 95 40 — 
Total delinquent loans$2,352 $2,130 $4,482 $2,098 $32 
Percentage of total loan receivables2.3 %2.0 %4.3 %2.0 %— %
At December 31, 2025 ($ in millions)30-89 days delinquent90 or more days delinquentTotal past due90 or more days delinquent and accruingTotal non-accruing
Credit cards$2,223 $2,181 $4,404 $2,181 $— 
Consumer installment loans144 31 175 — 31 
Commercial credit products45 36 81 36 — 
Total delinquent loans$2,412 $2,248 $4,660 $2,217 $31 
Percentage of total loan receivables2.3 %2.2 %4.5 %2.1 %— %

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-end 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 consumer 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 September 30, 2026, December 31, 2025 and September 30, 2025, respectively, as a percentage of each class of loan receivables.
The table below excludes 0.3%, 0.4% and 0.4% of our total loan receivables balance for our credit cards and commercial credit products at September 30, 2026, December 31, 2025 and September 30, 2025, respectively, which represents those customer accounts for which a VantageScore credit score, or equivalent, is not available.
September 30, 2026December 31, 2025September 30, 2025
651 or591 to590 or651 or591 to590 or651 or591 to590 or
higher650 lesshigher650 lesshigher650 less
Credit cards74 %18 %8 %74 %18 %8 %73 %19 %8 %
Commercial credit products 80 %12 %8 %83 %11 %6 %83 %11 %6 %
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 September 30, 2026 ($ in millions)
2026
2025
202420232022PriorTotal
Amortized cost basis$1,387 $1,299 $1,031 $747 $463 $182 $5,109 
30-89 days delinquent$22 $28 $28 $24 $17 $8 $127 
90 or more days delinquent$5 $8 $7 $7 $3 $2 $32 

By origination year
At December 31, 2025 ($ in millions)
2025
2024202320222021PriorTotal
Amortized cost basis$1,959 $1,524 $1,091 $655 $241 $78 $5,548 
30-89 days delinquent$37 $37 $35 $23 $9 $3 $144 
90 or more days delinquent$9 $9 $7 $4 $1 $1 $31 

Gross Charge-offs for Consumer Installment Loans by Origination Year
By origination year
For the nine months ended ($ in millions)
2026
2025
202420232022PriorTotal
September 30, 2026
$25 $93 $66 $56 $39 $16 $295 
September 30, 2025
$— $10 $101 $91 $62 $29 $293 
Loan Modifications to Borrowers Experiencing Financial Difficulty
The following tables provide information on our loan modifications made to borrowers experiencing financial difficulty during the periods presented, which do not include loans that are classified as loan receivables held for sale:
Three months ended September 30,20262025
($ in millions)
Amount
% of Total Class of Loan Receivables
Amount
% of Total Class of Loan Receivables
Long-term modifications
Credit cards$364 0.4 %$406 0.4 %
Consumer installment loans— — %— — %
Commercial credit products6 0.2 %2 0.1 %
Short-term modifications
Credit cards191 0.2 %203 0.2 %
Consumer installment loans— — %— — %
Commercial credit products1 — %1 — %
Total$562 0.5 %$612 0.6 %
Nine months ended September 30,20262025
($ in millions)
Amount(a)
% of Total Class of Loan Receivables
Amount
% of Total Class of Loan Receivables
Long-term modifications
Credit cards$1,103 1.2 %$1,228 1.3 %
Consumer installment loans— — %— — %
Commercial credit products12 0.5 %7 0.4 %
Short-term modifications
Credit cards605 0.6 %664 0.7 %
Consumer installment loans— — %— — %
Commercial credit products2 0.1 %2 — %
Total$1,722 1.7 %$1,901 1.9 %
_______________________
(a)Represents balance at enrollment date. Long-term and short-term loan modifications made to borrowers for the nine months ended September 30, 2026 had amortized cost balances at September 30, 2026 of $914 million and $120 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 nine months ended September 30, 2026 and 2025, 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 September 30, 2026 and 2025, unpaid balances of $10 million and $12 million, respectively, were forgiven related to borrowers who successfully exited the program. For short-term modifications made in the nine months ended September 30, 2026 and 2025, unpaid balances of $188 million and $211 million, respectively, were forgiven related to borrowers who successfully exited the program.
Performance of Loans Modified to Borrowers Experiencing Financial Difficulty
The following tables provide information on the performance of loans modified to borrowers experiencing financial difficulty which have been modified within the previous 12 months from the applicable balance sheet date and remained in a modification program at September 30, 2026 and 2025, respectively:
Amortized cost basis
At September 30, 2026 ($ in millions)Current30-89 days delinquent90 or more days delinquent
Total past due(a)
Long-term modifications
Credit cards$890 $138 $94 $232 
Consumer installment loans— — — — 
Commercial credit products8 2 1 3 
Short-term modifications
Credit cards58 31 31 62 
Consumer installment loans— — — — 
Commercial credit products— — — — 
Total loans modified
$956 $171 $126 $297 
Percentage of total loan receivables0.9 %0.2 %0.1 %0.3 %
Amortized cost basis
At September 30, 2025 ($ in millions)Current30-89 days delinquent90 or more days delinquent
Total past due(a)
Long-term modifications
Credit cards$972 $160 $111 $271 
Consumer installment loans— — — — 
Commercial credit products5 1 1 2 
Short-term modifications
Credit cards56 30 38 68 
Consumer installment loans— — — — 
Commercial credit products— — — — 
Total loans modified
$1,033 $191 $150 $341 
Percentage of total loan receivables1.0 %0.2 %0.1 %0.3 %
___________________
(a)    Once a loan has been modified, it only returns to current status if the borrower pays the total minimum payment due or if the loan is re-aged after three consecutive monthly program payments are received post the modification date.
Payment Defaults
The following table presents loans to borrowers experiencing financial difficulty that enrolled in a long-term modification program within the previous 12 months from the applicable balance sheet date, and experienced a payment default and charged-off during the period presented:
Three months ended September 30,Nine months ended September 30,
($ in millions)2026202520262025
Credit cards$84 $97 $188 $216 
Consumer installment loans— — — — 
Commercial credit products1 1 1 2 
Total$85 $98 $189 $218 
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, 62% and 64% had fully completed all required payments and successfully exited the program during the nine months ended September 30, 2026 and 2025, 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 $455 billion and $440 billion at September 30, 2026 and December 31, 2025, respectively. While these amounts represented the total available unused credit card lines, we have not experienced and do not anticipate that all of our customers will access their entire available line at any given point in time.
Interest Income by Product
The following table provides additional information about our interest and fees on loans, including merchant discounts, from our loan receivables, including held for sale:
Three months ended September 30,Nine months ended September 30,
($ in millions)2026202520262025
Credit cards(a)
$5,305 $5,255 $15,549 $15,386 
Consumer installment loans178 208 553 626 
Commercial credit products107 46 279 134 
Other1 1 3 4 
Total(b)
$5,591 $5,510 $16,384 $16,150 
_______________________
(a)Interest income on credit cards that was reversed related to accrued interest receivables written off was $561 million and $541 million for the three months ended September 30, 2026 and 2025, respectively, and $1.8 billion for both the nine months ended September 30, 2026 and 2025.
(b)Deferred merchant discounts to be recognized in interest income at September 30, 2026 and December 31, 2025, were $1.8 billion for both periods, which are included in Accrued expenses and other liabilities in our Condensed Consolidated Statements of Financial Position.