Allowance for Credit Losses

The Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments.

Refer to Note 13 of JPMorganChase's 2024 Form 10-K for a detailed discussion of the allowance for credit losses and the related accounting policies.

Allowance for credit losses and related information

The table below summarizes information about the allowances for credit losses and includes a breakdown of loans and lending-related commitments by impairment methodology. Refer to Note 10 of JPMorganChase’s 2024 Form 10-K and Note 9 of this Form 10-Q for further information on the allowance for credit losses on investment securities.


	2025								2024
Six months ended June 30, (in millions)	Consumer, excluding credit card		Credit card		Wholesale		Total			Consumer, excluding credit card		Credit card		Wholesale		Total
Allowance for loan losses
Beginning balance at January 1,	$	1,807	$	14,600	$	7,938	$	24,345		$	1,856	$	12,450	$	8,114	$	22,420

Gross charge-offs	540		4,616		604		5,760			661		3,998		448		5,107
Gross recoveries collected	(248)		(698)		(72)		(1,018)			(343)		(482)		(95)		(920)
Net charge-offs/(recoveries)	292		3,918		532		4,742			318		3,516		353		4,187
Provision for loan losses	334		4,319		691		5,344			204		4,266		288		4,758
Other	—		—		6		6			1		—		(1)		—
Ending balance at June 30,	$	1,849	$	15,001	$	8,103	$	24,953		$	1,743	$	13,200	$	8,048	$	22,991
Allowance for lending-related commitments
Beginning balance at January 1,	$	82	$	—	$	2,019	$	2,101		$	75	$	—	$	1,899	$	1,974
Provision for lending-related commitments	1		—		830		831			17		—		77		94
Other	—		—		—		—			—		—		—		—
Ending balance at June 30,	$	83	$	—	$	2,849	$	2,932		$	92	$	—	$	1,976	$	2,068
Total allowance for investment securities	NA		NA		NA		108			NA		NA		NA		177
Total allowance for credit losses(a)	$	1,932	$	15,001	$	10,952	$	27,993		$	1,835	$	13,200	$	10,024	$	25,236
Allowance for loan losses by impairment methodology
Asset-specific(b)	$	(683)	$	—	$	781	$	98		$	(856)	$	—	$	562	$	(294)
Portfolio-based	2,532		15,001		7,322		24,855			2,599		13,200		7,486		23,285
Total allowance for loan losses	$	1,849	$	15,001	$	8,103	$	24,953		$	1,743	$	13,200	$	8,048	$	22,991

Loans by impairment methodology
Asset-specific(b)	$	2,895	$	—	$	4,519	$	7,414		$	3,034	$	—	$	3,283	$	6,317
Portfolio-based	368,960		232,943		736,156		1,338,059			379,761		216,100		670,869		1,266,730
Total retained loans	$	371,855	$	232,943	$	740,675	$	1,345,473		$	382,795	$	216,100	$	674,152	$	1,273,047
Collateral-dependent loans
Net charge-offs	$	(5)	$	—	$	108	$	103		$	3	$	—	$	134	$	137
Loans measured at fair value of collateral less cost to sell	2,754		—		1,763		4,517			2,978		—		1,341		4,319
Allowance for lending-related commitments by impairment methodology
Asset-specific	$	—	$	—	$	167	$	167		$	—	$	—	$	107	$	107
Portfolio-based	83		—		2,682		2,765			92		—		1,869		1,961
Total allowance for lending-related commitments(c)	$	83	$	—	$	2,849	$	2,932		$	92	$	—	$	1,976	$	2,068
Lending-related commitments by impairment methodology
Asset-specific	$	—	$	—	$	922	$	922		$	—	$	—	$	541	$	541
Portfolio-based(d)	26,390		321		534,556		561,267			27,375		—		511,857		539,232
Total lending-related commitments	$	26,390	$	321	$	535,478	$	562,189		$	27,375	$	—	$	512,398	$	539,773

(a)At June 30, 2025 and 2024, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for credit losses of $288 million and $278 million, respectively, associated with certain accounts receivable in CIB.

(b)Includes collateral-dependent loans, including those for which foreclosure is deemed probable, and nonaccrual risk-rated loans.

(c)The allowance for lending-related commitments is reported in accounts payable and other liabilities on the Consolidated balance sheets.

(d)At June 30, 2025 and 2024, lending-related commitments excluded $20.7 billion and $19.8 billion, respectively, for the consumer, excluding credit card portfolio segment; $1.0 trillion and $964.7 billion, respectively, for the credit card portfolio segment; and $24.2 billion and $32.6 billion, respectively, for the wholesale portfolio segment, which were not subject to the allowance for lending-related commitments.

Discussion of changes in the allowance

The allowance for credit losses as of June 30, 2025 was $28.3 billion, reflecting a net addition of $1.4 billion from December 31, 2024.

The net addition to the allowance for credit losses included:

•$1.0 billion in wholesale, predominantly driven by changes in credit quality of client-specific exposures, the impact of new lending-related commitments, as well as the impact of changes in the Firm's weighted-average macroeconomic outlook, and

•$444 million in consumer, predominantly driven by Card Services, reflecting loan growth and the impact of changes in the Firm's weighted-average macroeconomic outlook.

As of December 31, 2024, the Firm's qualitative adjustments and its weighted-average macroeconomic outlook included additional weight placed on the adverse scenarios to reflect ongoing uncertainties and downside risks related to the geopolitical and macroeconomic environment. In the first quarter of 2025, the Firm further increased the weight placed on the adverse scenarios, and in the second quarter, the Firm partially reduced the increase in weight implemented in the first quarter.

The Firm's allowance for credit losses is estimated using a weighted average of five internally developed macroeconomic scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the following table, resulting in:

•a weighted average U.S. unemployment rate peaking at 5.9% in the second quarter of 2026, and

•a weighted average U.S. real GDP level that is 2.0% lower than the central case at the end of the fourth quarter of 2026.

The following table presents the Firm’s central case assumptions for the periods presented:


	Central case assumptions at June 30, 2025
	4Q25		2Q26		4Q26
U.S. unemployment rate(a)	4.6	%	4.8	%	4.5	%
YoY growth in U.S. real GDP(b)	0.6	%	1.0	%	2.1	%

	Central case assumptions at December 31, 2024
	2Q25		4Q25		2Q26
U.S. unemployment rate(a)	4.5	%	4.3	%	4.3	%
YoY growth in U.S. real GDP(b)	2.0	%	1.9	%	1.8	%

(a)Reflects quarterly average of forecasted U.S. unemployment rate.

(b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year.

Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods.

Refer to Note 13 and Note 10 of JPMorganChase’s 2024 Form 10-K for a description of the policies, methodologies and judgments used to determine the Firm’s allowance for credit losses on loans, lending-related commitments, and investment securities.

Refer to Note 11 for additional information on the consumer and wholesale credit portfolios.

Refer to Critical Accounting Estimates Used by the Firm on pages 85-88 for further information on the allowance for credit losses and related management judgments.