v3.26.1
Allowance for Credit Losses and Reserve for Unfunded Lending Commitments (Tables)
 6 Months Ended
Jun. 30, 2026
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Allowance for Credit Losses on Financing Receivables
The table below summarizes changes in the allowance for credit losses and reserve for unfunded lending commitments by segment for the three and six months ended June 30, 2026 and 2025. Our allowance for credit losses decreased by $443 million to $23.0 billion as of June 30, 2026 from December 31, 2025.
Table 5.1: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity
Three Months Ended June 30, 2026
(Dollars in millions)Credit CardConsumer BankingCommercial BankingTotal
Allowance for credit losses:
Balance as of March 31, 2026$20,049 $2,047 $1,534 $23,630 
Charge-offs
(4,458)(702)(123)(5,283)
Recoveries(1)(2)
1,266 373 2 1,641 
Net charge-offs(3,192)(329)(121)(3,642)
Provision for credit losses2,474 444 62 2,980 
Allowance build (release) for credit losses(718)115 (59)(662)
Other changes(3)
(2)— — (2)
Balance as of June 30, 202619,329 2,162 1,475 22,966 
Reserve for unfunded lending commitments:
Balance as of March 31, 2026— — 133133
Provision (benefit) for losses on unfunded lending commitments— — 99
Balance as of June 30, 2026— — 142142
Combined allowance and reserve as of June 30, 2026$19,329 $2,162 $1,617 $23,108 
    
Six Months Ended June 30, 2026
(Dollars in millions)Credit CardConsumer BankingCommercial BankingTotal
Allowance for credit losses:
Balance as of December 31, 2025$20,066 $1,892 $1,451 $23,409 
Charge-offs
(9,099)(1,437)(192)(10,728)
Recoveries(1)(2)
2,488 744 7 3,239 
Net charge-offs(6,611)(693)(185)(7,489)
Provision for credit losses5,885 963 209 7,057 
Allowance build (release) for credit losses(726)270 24 (432)
Other changes(3)
(11)— — (11)
Balance as of June 30, 202619,329 2,162 1,475 22,966 
Reserve for unfunded lending commitments:
Balance as of December 31, 2025— — 142 142 
Provision (benefit) for losses on unfunded lending commitments— — — — 
Balance as of June 30, 2026— — 142 142 
Combined allowance and reserve as of June 30, 2026$19,329 $2,162 $1,617 $23,108 

Three Months Ended June 30, 2025
(Dollars in millions)Credit CardConsumer BankingCommercial BankingTotal
Allowance for credit losses:
Balance as of March 31, 2025$12,510 $1,872 $1,517 $15,899 
Charge-offs(4)
(3,590)(612)(81)(4,283)
Recoveries(1)(2)
862 352 9 1,223 
Net charge-offs(2,728)(260)(72)(3,060)
Initial allowance for purchased credit deteriorated loans
2,870 — — 2,870 
Benefit from expected recoveries of charged off loans(5)
(3,305)— — (3,305)
Provision for credit losses(6)
11,098 252 90 11,440 
Allowance build (release) for credit losses
7,935 (8)18 7,945 
Other changes(3)
29 — — 29 
Balance as of June 30, 202520,474 1,864 1,535 23,873 
Reserve for unfunded lending commitments:
Balance as of March 31, 2025— — 144 144 
Provision (benefit) for losses on unfunded lending commitments— — (9)(9)
Balance as of June 30, 2025— — 135 135 
Combined allowance and reserve as of June 30, 2025$20,474 $1,864 $1,670 $24,008 
Six Months Ended June 30, 2025
(Dollars in millions)Credit CardConsumer BankingCommercial BankingTotal
Allowance for credit losses:
Balance as of December 31, 2024$12,974 $1,884 $1,400 $16,258 
Charge-offs(4)
(6,568)(1,288)(119)(7,975)
Recoveries(1)(2)
1,441 715 23 2,179 
Net charge-offs(5,127)(573)(96)(5,796)
Initial allowance for purchased credit deteriorated loans
2,870 — — 2,870 
Benefit from expected recoveries of charged off loans(5)
(3,305)— — (3,305)
Provision for credit losses(6)
13,024 553 231 13,808 
Allowance build (release) for credit losses
7,462 (20)135 7,577 
Other changes(3)
38 — — 38 
Balance as of June 30, 202520,474 1,864 1,535 23,873 
Reserve for unfunded lending commitments:
Balance as of December 31, 2024— — 143 143 
Provision (benefit) for losses on unfunded lending commitments— — (8)(8)
Balance as of June 30, 2025— — 135 135 
Combined allowance and reserve as of June 30, 2025$20,474 $1,864 $1,670 $24,008 
_________
(1)The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications, repossession of collateral, the periodic sale of charged off loans as well as additional strategies, such as litigation.
(2)    Third-party collection expenses of $252 million and $496 million for the three and six months ended June 30, 2026, respectively, and $170 million and $278 million for the three and six months ended June 30, 2025, respectively, are included in other non-interest expense.
(3)     Primarily represents foreign currency translation adjustments.
(4)    Charge-offs exclude $19.4 billion of Discover loans acquired in the second quarter of 2025 that were fully charged-off, with expected recoveries of $3.3 billion included as a benefit to the allowance for credit losses.
(5)    Represents contractual rights to collect on recoveries of acquired Discover loans that were charged off.
(6)    Amount includes the initial allowance for credit losses of $8.8 billion for non-purchased credit deteriorated (“non-PCD”) loans acquired in the Transaction.
Credit Quality Indicator
The tables below present our Credit Card segment by delinquency status as of June 30, 2026 and December 31, 2025.
Table 4.3: Domestic and International Credit Card Delinquency Status
June 30, 2026December 31, 2025
(Dollars in millions)Revolving LoansRevolving Loans Converted to TermTotalRevolving LoansRevolving Loans Converted to TermTotal
Credit Card:
Domestic credit card:
Current
$248,429 $1,806 $250,235 $250,332 $1,600 $251,932 
30-59 days
2,587 95 2,682 2,925 90 3,015 
60-89 days
1,831 71 1,902 2,233 75 2,308 
Greater than 90 days
4,072 114 4,186 5,016 132 5,148 
Total domestic credit card256,919 2,086 259,005 260,506 1,897 262,403 
International card businesses:
Current
7,369 45 7,414 7,260 44 7,304 
30-59 days
117 5 122 112 5 117 
60-89 days
73 3 76 80 3 83 
Greater than 90 days
168 4 172 158 6 164 
Total international card businesses$7,727 $57 $7,784 $7,610 $58 $7,668 
Table 4.4: Personal Loans Delinquency Status
June 30, 2026
Term Loans by Vintage Year
(Dollars in millions)20262025202420232022PriorTotal Term LoansRevolving LoansRevolving Loans Converted to TermTotal
Personal loans—Delinquency status:
Current$1,704 $3,131 $1,957 $1,095 $424 $157 $8,468 $— $— $8,468 
30-59 days2 16 19 15 6 3 61 — — 61 
60-89 days1 13 14 11 5 2 46 — — 46 
Greater than 90 days1 9 13 13 6 2 44 — — 44 
Total personal loans$1,708 $3,169 $2,003 $1,134 $441 $164 $8,619 $— $— $8,619 
December 31, 2025
Term Loans by Vintage Year
(Dollars in millions)20252024202320222021PriorTotal Term LoansRevolving LoansRevolving Loans Converted to TermTotal
Personal loans—Delinquency status:
Current$4,050 $2,727 $1,614 $658 $208 $68 $9,325 $— $— $9,325 
30-59 days14 22 22 10 3 1 72 — — 72 
60-89 days8 17 16 8 3 1 53 — — 53 
Greater than 90 days5 16 17 8 2 1 49 — — 49 
Total personal loans$4,077 $2,782 $1,669 $684 $216 $71 $9,499 $— $— $9,499 
The table below presents loans held for investment in our Consumer Banking segment loans held for investment by credit quality indicator as of June 30, 2026 and December 31, 2025. We present our auto loan portfolio by Fair Isaac Corporation (“FICO”) scores at origination and our retail banking loan portfolio by delinquency status, which includes all past due loans, both performing and nonperforming.
Table 4.5: Consumer Banking Portfolio by Vintage Year
June 30, 2026
Term Loans by Vintage Year
(Dollars in millions)20262025202420232022PriorTotal Term LoansRevolving LoansRevolving Loans Converted to TermTotal
Auto—At origination FICO scores:(1)
Greater than 660$11,139 $14,547 $9,302 $3,945 $3,232 $1,853 $44,018 $— $— $44,018 
621-6604,131 5,724 3,267 1,751 1,207 730 16,810 — — 16,810 
620 or below7,761 10,714 4,892 2,515 1,530 1,071 28,483 — — 28,483 
Total auto23,031 30,985 17,461 8,211 5,969 3,654 89,311 — — 89,311 
Retail banking—Delinquency status:
Current67 80 121 65 74 395 802 329 2 1,133 
30-59 days— 3 1 — — 4 8 8 — 16 
60-89 days— — — — — — — 2 — 2 
Greater than 90 days— 1 2 1 — 1 5 — — 5 
Total retail banking67 84 124 66 74 400 815 339 2 1,156 
Total consumer banking$23,098 $31,069 $17,585 $8,277 $6,043 $4,054 $90,126 $339 $2 $90,467 
    
December 31, 2025
Term Loans by Vintage Year
(Dollars in millions)20252024202320222021PriorTotal Term LoansRevolving LoansRevolving Loans Converted to TermTotal
Auto—At origination FICO scores:(1)
Greater than 660$17,601 $11,622 $5,209 $4,634 $2,706 $512 $42,284 $— $— $42,284 
621-6606,691 4,002 2,258 1,683 988 263 15,885 — — 15,885 
620 or below12,319 5,947 3,213 2,115 1,290 547 25,431 — — 25,431 
Total auto36,611 21,571 10,680 8,432 4,984 1,322 83,600 — — 83,600 
Retail banking—Delinquency status:
Current103 126 69 78 40 411 827 341 3 1,171 
30-59 days1 — — — — 1 2 10 — 12 
60-89 days— — — — — 1 1 1 — 2 
Greater than 90 days— — — — — 2 2 3 — 5 
Total retail banking104 126 69 78 40 415 832 355 3 1,190 
Total consumer banking$36,715 $21,697 $10,749 $8,510 $5,024 $1,737 $84,432 $355 $3 $84,790 
__________
(1)Amounts represent period-end loans held for investment in each credit score category. Auto loan credit scores generally represent average FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category.
The following table presents loans held for investment for our Commercial Banking segment by internal risk ratings as of June 30, 2026 and December 31, 2025. The internal risk rating status includes all past due loans, both performing and nonperforming.
Table 4.6: Commercial Banking Portfolio by Internal Risk Ratings
June 30, 2026
Term Loans by Vintage Year
(Dollars in millions)20262025202420232022PriorTotal Term LoansRevolving LoansRevolving Loans Converted to TermTotal
Internal risk rating:(1)
Commercial and multifamily real estate
Noncriticized$1,923 $2,259 $1,252 $1,564 $2,638 $4,895 $14,531 $17,611 $50 $32,192 
Criticized performing— — 153 70 381 929 1,533 33 89 1,655 
Criticized nonperforming— 9 23 — — 411 443 — — 443 
Total commercial and multifamily real estate1,923 2,268 1,428 1,634 3,019 6,235 16,507 17,644 139 34,290 
Commercial and industrial
Noncriticized4,283 7,144 4,433 4,280 6,551 8,576 35,267 18,534 41 53,842 
Criticized performing1 169 267 232 514 688 1,871 532 — 2,403 
Criticized nonperforming— 4 65 8 112 391 580 127 51 758 
Total commercial and industrial4,284 7,317 4,765 4,520 7,177 9,655 37,718 19,193 92 57,003 
Total commercial banking$6,207 $9,585 $6,193 $6,154 $10,196 $15,890 $54,225 $36,837 $231 $91,293 
December 31, 2025
Term Loans by Vintage Year
(Dollars in millions)20252024202320222021PriorTotal Term LoansRevolving LoansRevolving Loans Converted to TermTotal
Internal risk rating:(1)
Commercial and multifamily real estate
Noncriticized$2,288 $1,516 $2,034 $3,178 $1,357 $4,573 $14,946 $16,352 $140 $31,438 
Criticized performing— 172 145 428 109 975 1,829 29 2 1,860 
Criticized nonperforming10 17 — — 76 217 320 — — 320 
Total commercial and multifamily real estate2,298 1,705 2,179 3,606 1,542 5,765 17,095 16,381 142 33,618 
Commercial and industrial
Noncriticized8,077 5,391 4,623 7,531 3,284 6,667 35,573 16,643 219 52,435 
Criticized performing3 162 185 391 726 309 1,776 541 — 2,317 
Criticized nonperforming12 71 12 158 246 196 695 162 35 892 
Total commercial and industrial8,092 5,624 4,820 8,080 4,256 7,172 38,044 17,346 254 55,644 
Total commercial banking$10,390 $7,329 $6,999 $11,686 $5,798 $12,937 $55,139 $33,727 $396 $89,262 
__________
(1)Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities.
The table below presents gross charge-offs for loans held for investment by vintage year during the six months ended June 30, 2026.
Table 5.2: Gross Charge-Offs by Vintage Year
Six Months Ended June 30, 2026
Term Loans by Vintage Year
(Dollars in millions)20262025202420232022PriorTotal Term LoansRevolving LoansRevolving Loans Converted to TermTotal
Credit Card
Domestic credit cardN/AN/AN/AN/AN/AN/AN/A$8,331 $221 $8,552 
Personal loans
$— $55 $81 $63 $27 $11 $237 N/AN/A237 
International card businessN/AN/AN/AN/AN/AN/AN/A305 5 310 
Total credit card— 55 81 63 27 11 237 8,636 226 9,099 
Consumer Banking
Auto29 447 370 232 183 133 1,394 — — 1,394 
Retail banking— — 1 — — 1 2 41 — 43 
Total consumer banking29 447 371 232 183 134 1,396 41 — 1,437 
Commercial Banking
Commercial and multifamily real estate— — — — — 11 11 — — 11 
Commercial and industrial— — — — 53 85 138 43 — 181 
Total commercial banking— — — — 53 96 149 43 — 192 
Total$29 $502 $452 $295 $263 $241 $1,782 $8,720 $226 $10,728 
Schedule of Loss Sharing Arrangement Impact
The table below summarizes the changes in the estimated reimbursements from these partners for the three and six months ended June 30, 2026 and 2025.
Table 5.3: Summary of Credit Card Partnership Loss Sharing Arrangements Impacts
Three Months Ended June 30,
(Dollars in millions)20262025
Estimated reimbursements from partners, beginning of period$1,267 $1,090 
Amounts due from partners for charged off loans(155)(166)
Change in estimated partner reimbursements that decreased provision for credit losses124 267 
Estimated reimbursements from partners, end of period$1,236 $1,191 
Six Months Ended June 30,
(Dollars in millions)20262025
Estimated reimbursements from partners, beginning of period$1,103 $1,010 
Amounts due from partners for charged off loans(328)(337)
Change in estimated partner reimbursements that decreased provision for credit losses461 518 
Estimated reimbursements from partners, end of period$1,236 $1,191