Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 85: 
DISCOVER FINANCIAL SERVICES


Consolidated Statements of Financial Condition

(dollars in millions, except for share amounts)|    |                                                                                                                                                                                                                |              |         |      |          |    |         |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:-----|:---------|:---|:--------|
|  1 |                                                                                                                                                                                                                | December 31, |         |      |          |    |         |
|  2 |                                                                                                                                                                                                                | 2023         |         | 2022 |          |    |         |
|  3 | Assets                                                                                                                                                                                                         |              |         |      |          |    |         |
|  4 | Cash and cash equivalents                                                                                                                                                                                      | $            | 11,685  |      |          | $  | 8,856   |
|  5 | Restricted cash                                                                                                                                                                                                | 43           |         |      | 41       |    |         |
|  7 | Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively) | 13,655       |         |      | 12,208   |    |         |
|  8 | Loan receivables                                                                                                                                                                                               |              |         |      |          |    |         |
|  9 | Loan receivables                                                                                                                                                                                               | 128,409      |         |      | 112,120  |    |         |
| 10 | Allowance for credit losses                                                                                                                                                                                    | (9,283)      |         |      | (7,374)  |    |         |
| 11 | Net loan receivables                                                                                                                                                                                           | 119,126      |         |      | 104,746  |    |         |
| 12 | Premises and equipment, net                                                                                                                                                                                    | 1,091        |         |      | 1,003    |    |         |
| 13 | Goodwill                                                                                                                                                                                                       | 255          |         |      | 255      |    |         |
| 15 | Other assets                                                                                                                                                                                                   | 5,667        |         |      | 4,597    |    |         |
| 16 | Total assets                                                                                                                                                                                                   | $            | 151,522 |      |          | $  | 131,706 |
| 17 | Liabilities and Stockholders' Equity                                                                                                                                                                           |              |         |      |          |    |         |
| 18 | Liabilities                                                                                                                                                                                                    |              |         |      |          |    |         |
| 19 | Deposits                                                                                                                                                                                                       |              |         |      |          |    |         |
| 20 | Interest-bearing deposit accounts                                                                                                                                                                              | $            | 107,493 |      |          | $  | 90,151  |
| 21 | Non-interest-bearing deposit accounts                                                                                                                                                                          | 1,438        |         |      | 1,485    |    |         |
| 22 | Total deposits                                                                                                                                                                                                 | 108,931      |         |      | 91,636   |    |         |
| 23 | Short-term borrowings                                                                                                                                                                                          | 750          |         |      | -        |    |         |
| 24 | Long-term borrowings                                                                                                                                                                                           | 20,581       |         |      | 20,108   |    |         |
| 25 | Accrued expenses and other liabilities                                                                                                                                                                         | 6,432        |         |      | 5,618    |    |         |
| 26 | Total liabilities                                                                                                                                                                                              | 136,694      |         |      | 117,362  |    |         |
| 27 | Commitments, contingencies and guarantees (Notes 15, 18 and 19)                                                                                                                                                |              |         |      |          |    |         |
| 28 | Stockholders' Equity                                                                                                                                                                                           |              |         |      |          |    |         |
| 29 | Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively                                                | 6            |         |      | 6        |    |         |
| 30 | Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively                                                    | 1,056        |         |      | 1,056    |    |         |
| 31 | Additional paid-in capital                                                                                                                                                                                     | 4,553        |         |      | 4,468    |    |         |
| 32 | Retained earnings                                                                                                                                                                                              | 30,448       |         |      | 28,207   |    |         |
| 33 | Accumulated other comprehensive loss                                                                                                                                                                           | (225)        |         |      | (339)    |    |         |
| 34 | Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively                                                                                                        | (21,010)     |         |      | (19,054) |    |         |
| 35 | Total stockholders' equity                                                                                                                                                                                     | 14,828       |         |      | 14,344   |    |         |
| 36 | Total liabilities and stockholders' equity                                                                                                                                                                     | $            | 151,522 |      |          | $  | 131,706 |
The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services.
|    |                                                                       |              |         |      |    |         |
|---:|:----------------------------------------------------------------------|:-------------|:--------|:-----|:---|:--------|
|  1 |                                                                       | December 31, |         |      |    |         |
|  2 |                                                                       | 2023         |         | 2022 |    |         |
|  3 | Assets                                                                |              |         |      |    |         |
|  4 | Restricted cash                                                       | $            | 43      |      | $  | 41      |
|  5 | Loan receivables                                                      | $            | 30,590  |      | $  | 25,937  |
|  6 | Allowance for credit losses allocated to securitized loan receivables | $            | (1,347) |      | $  | (1,152) |
|  7 | Other assets                                                          | $            | 3       |      | $  | 3       |
|  8 | Liabilities                                                           |              |         |      |    |         |
|  9 | Short- and long-term borrowings                                       | $            | 11,743  |      | $  | 10,259  |
| 10 | Accrued expenses and other liabilities                                | $            | 19      |      | $  | 14      |

See Notes to the Consolidated Financial Statements.

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, Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 104: 
Allowance for Credit Losses

The following tables provide changes in the Company's 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 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.
The allowance for credit losses was approximately $9.3 billion at December 31, 2023, which reflects a $1.9 billion build from the amount of the allowance for credit losses at December 31, 2022. The build in the allowance for credit losses between December 31, 2023 and December 31, 2022, was primarily driven by loan growth, increasing delinquencies, and macroeconomic variables impacting household cash flows.
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Question: How does Discover’s Allowance for Loan Losses to Total Loans Ratio in 2023 compare to previous years?
Answer: To analyze Discover’s Allowance for Loan Losses to Total Loans Ratio, we compare the ratio for 2023 with previous years:
2023: Allowance for Loan Losses = $9.283 billion, Total Loans = $128.409 billion, Ratio =7.2% 
2022: Allowance for Loan Losses = $7.374 billion, Total Loans = $112.120 billion, Ratio = 6.6%
As per the management, The build in the allowance for credit losses over the years, was primarily driven by loan growth, increasing delinquencies, and macroeconomic variables impacting household cash flows.