Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 65: The following tables provide changes in our allowance for credit losses (dollars in millions):
|    |                                                  |                                      |       |                      |       |                |     |             |             |     |         |    |    |       |
|---:|:-------------------------------------------------|:-------------------------------------|:------|:---------------------|:------|:---------------|:----|:------------|:------------|:----|:--------|:---|:---|:------|
|  1 |                                                  | For the Year Ended December 31, 2023 |       |                      |       |                |     |             |             |     |         |    |    |       |
|  2 |                                                  | Credit Card Loans                    |       | Private StudentLoans |       | Personal Loans |     | Other Loans | Total Loans |     |         |    |    |       |
|  3 | Balance at December 31, 2022                     | $                                    | 5,883 |                      |       | $              | 839 |             | $           | 595 | $       | 57 | $  | 7,374 |
|  4 | Cumulative effect of ASU No. 2022-02 adoption(1) | (66)                                 |       |                      | -     |                |     | (2)         |             | -   | (68)    |    |    |       |
|  5 | Balance at January 1, 2023                       | 5,817                                |       |                      | 839   |                |     | 593         |             | 57  | 7,306   |    |    |       |
|  6 | Additions                                        |                                      |       |                      |       |                |     |             |             |     |         |    |    |       |
|  7 | Provision for credit losses(2)                   | 5,476                                |       |                      | 152   |                |     | 363         |             | 28  | 6,019   |    |    |       |
|  8 | Deductions                                       |                                      |       |                      |       |                |     |             |             |     |         |    |    |       |
|  9 | Charge-offs                                      | (4,481)                              |       |                      | (155) |                |     | (290)       |             | (1) | (4,927) |    |    |       |
| 10 | Recoveries                                       | 807                                  |       |                      | 22    |                |     | 56          |             | -   | 885     |    |    |       |
| 11 | Net charge-offs                                  | (3,674)                              |       |                      | (133) |                |     | (234)       |             | (1) | (4,042) |    |    |       |
| 13 | Balance at December 31, 2023                     | $                                    | 7,619 |                      |       | $              | 858 |             | $           | 722 | $       | 84 | $  | 9,283 |
| 15 |                                                  | For the Year Ended December 31, 2022 |       |                      |       |                |     |             |             |     |         |    |    |       |
| 16 |                                                  | Credit Card Loans                    |       | Private StudentLoans |       | Personal Loans |     | Other Loans | Total Loans |     |         |    |    |       |
| 17 | Balance at December 31, 2021                     | $                                    | 5,273 |                      |       | $              | 843 |             | $           | 662 | $       | 44 | $  | 6,822 |
| 18 | Additions                                        |                                      |       |                      |       |                |     |             |             |     |         |    |    |       |
| 19 | Provision for credit losses(2)                   | 2,233                                |       |                      | 99    |                |     | 24          |             | 13  | 2,369   |    |    |       |
| 20 | Deductions                                       |                                      |       |                      |       |                |     |             |             |     |         |    |    |       |
| 21 | Charge-offs                                      | (2,417)                              |       |                      | (126) |                |     | (159)       |             | -   | (2,702) |    |    |       |
| 22 | Recoveries                                       | 794                                  |       |                      | 23    |                |     | 68          |             | -   | 885     |    |    |       |
| 23 | Net charge-offs                                  | (1,623)                              |       |                      | (103) |                |     | (91)        |             | -   | (1,817) |    |    |       |
| 25 | Balance at December 31, 2022                     | $                                    | 5,883 |                      |       | $              | 839 |             | $           | 595 | $       | 57 | $  | 7,374 |
| 27 |                                                  | For the Year Ended December 31, 2021 |       |                      |       |                |     |             |             |     |         |    |    |       |
| 28 |                                                  | Credit Card Loans                    |       | Private StudentLoans |       | Personal Loans |     | Other Loans | Total Loans |     |         |    |    |       |
| 29 | Balance at December 31, 2020                     | $                                    | 6,491 |                      |       | $              | 840 |             | $           | 857 | $       | 38 | $  | 8,226 |
| 32 | Additions                                        |                                      |       |                      |       |                |     |             |             |     |         |    |    |       |
| 33 | Provision for credit losses(2)                   | 229                                  |       |                      | 67    |                |     | (75)        |             | 6   | 227     |    |    |       |
| 34 | Deductions                                       |                                      |       |                      |       |                |     |             |             |     |         |    |    |       |
| 35 | Charge-offs                                      | (2,255)                              |       |                      | (89)  |                |     | (190)       |             | -   | (2,534) |    |    |       |
| 36 | Recoveries                                       | 808                                  |       |                      | 25    |                |     | 70          |             | -   | 903     |    |    |       |
| 37 | Net charge-offs                                  | (1,447)                              |       |                      | (64)  |                |     | (120)       |             | -   | (1,631) |    |    |       |
| 39 | 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 Accounting Standards Update ("ASU") No. 2022-02 on January 1, 2023.

(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 our consolidated statements of financial condition.
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, Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 67: 
Delinquencies

Delinquencies are an indicator of credit quality at a point in time. A loan balance is considered delinquent when contractual payments on the loan become 30 days past due.
The following table presents the amounts and delinquency rates of key loan products that are 30 and 90 days or more delinquent, and loan receivables that are not accruing interest regardless of delinquency (dollars in millions):|    |                                  |              |       |      |      |    |    |    |       |      |    |
|---:|:---------------------------------|:-------------|:------|:-----|:-----|:---|:---|:---|:------|:-----|:---|
|  1 |                                  | December 31, |       |      |      |    |    |    |       |      |    |
|  2 |                                  | 2023         |       | 2022 |      |    |    |    |       |      |    |
|  3 |                                  | $            |       | %    | $    |    | %  |    |       |      |    |
|  4 | Loans 30 or more days delinquent |              |       |      |      |    |    |    |       |      |    |
|  5 | Credit card loans                | $            | 3,955 |      | 3.87 | %  |    | $  | 2,278 | 2.53 | %  |
|  6 | Private student loans            | $            | 271   |      | 2.62 | %  |    | $  | 212   | 2.05 | %  |
|  7 | Personal loans                   | $            | 143   |      | 1.45 | %  |    | $  | 63    | 0.80 | %  |
|  9 | Total loan receivables           | $            | 4,427 |      | 3.45 | %  |    | $  | 2,578 | 2.30 | %  |
| 11 | Loans 90 or more days delinquent |              |       |      |      |    |    |    |       |      |    |
| 12 | Credit card loans                | $            | 1,917 |      | 1.87 | %  |    | $  | 1,028 | 1.14 | %  |
| 13 | Private student loans            | $            | 70    |      | 0.67 | %  |    | $  | 45    | 0.43 | %  |
| 14 | Personal loans                   | $            | 39    |      | 0.40 | %  |    | $  | 16    | 0.21 | %  |
| 16 | Total loan receivables           | $            | 2,045 |      | 1.59 | %  |    | $  | 1,101 | 0.98 | %  |
| 18 | Loans not accruing interest      | $            | 269   |      | 0.21 | %  |    | $  | 214   | 0.19 | %  |
The 30-day and 90-day delinquency rates for credit card loans, private student loans, and personal loans at December 31, 2023, increased compared to December 31, 2022, primarily driven by portfolio seasoning.

Modified and Restructured Loans

For information regarding modified and restructured loans, see Note 4: Loan Receivables to our condensed consolidated financial statements.

Maturities and Sensitivities of Loan Receivables to Changes in Interest Rates

Our loan portfolio had the following maturity distribution(1) (dollars in millions):
|    |                       |                    |        |                                    |       |                                           |        |                         |       |        |        |       |    |         |
|---:|:----------------------|:-------------------|:-------|:-----------------------------------|:------|:------------------------------------------|:-------|:------------------------|:------|:-------|:-------|:------|:---|:--------|
|  1 | At December 31, 2023  | Due OneYear orLess |        | Due AfterOne YearThroughFive Years |       | Due AfterFive Years Through Fifteen Years |        | Due After Fifteen Years | Total |        |        |       |    |         |
|  2 | Credit card loans     | $                  | 32,250 |                                    |       | $                                         | 54,628 |                         | $     | 15,032 | $      | 349   | $  | 102,259 |
|  3 | Private student loans | 364                |        |                                    | 2,083 |                                           |        | 6,296                   |       | 1,609  | 10,352 |       |    |         |
|  4 | Personal loans        | 2,653              |        |                                    | 6,653 |                                           |        | 546                     |       | -      | 9,852  |       |    |         |
|  5 | Other loans           | 161                |        |                                    | 724   |                                           |        | 2,102                   |       | 2,959  | 5,946  |       |    |         |
|  6 | Total loan portfolio  | $                  | 35,428 |                                    |       | $                                         | 64,088 |                         | $     | 23,976 | $      | 4,917 | $  | 128,409 |

(1)    Because of the uncertainty regarding loan repayment patterns, the above amounts have been calculated using contractually required minimum payments. Historically, actual loan repayments have been higher than such minimum payments and, therefore, the above amounts may not necessarily be indicative of our actual loan repayments.
At December 31, 2023, approximately $55.9 billion of our loan portfolio due after one year had interest rates tied to an index and approximately $37.0 billion were fixed-rate loans.
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Question: What does Discover’s Provision Coverage Ratio for 2023 indicate about its approach to managing bad debts?
Answer: The PCR  for Discover for 2023 of approximately 401.21% indicates that Discover has set aside provisions that are more than four times the amount of its NPAs. A higher PCR suggests strong risk management as it shows that the company is well-prepared to cover potential losses from its bad loans. This level of coverage provides confidence that the company can absorb credit losses, reflecting financial stability and conservative provisioning practices.