The following is a description of the loan types in the table above:

•Corporate. Corporate loans includes term loans, revolving lines of credit, letter of credit facilities and bridge loans, and are principally used for operating and general corporate purposes, or in connection with acquisitions. Corporate loans are secured (typically by a senior lien on the assets of the borrower) or unsecured, depending on the loan purpose, the risk profile of the borrower and other factors.

•Commercial Real Estate. Commercial real estate loans includes originated loans that are directly or indirectly secured by hotels, retail stores, multifamily housing complexes and commercial and industrial properties. Commercial real estate loans also includes loans extended to clients who warehouse assets that are directly or indirectly backed by commercial real estate. In addition, commercial real estate includes loans purchased by the firm.

•Residential Real Estate. Residential real estate loans primarily includes loans extended to wealth management clients and to clients who warehouse assets that are directly or indirectly secured by residential real estate. In addition, residential real estate includes loans purchased by the firm.

•Securities-Based. Securities-based loans includes loans that are secured by stocks, bonds, mutual funds, and exchange-traded funds. These loans are primarily extended to the firm’s wealth management clients and used for purposes other than purchasing, carrying or trading margin stocks. Securities-based loans require borrowers to post additional collateral on a daily basis (daily margin requirement) based on changes in the underlying collateral’s fair value.

•Other Collateralized. Other collateralized loans includes loans that are backed by specific collateral (other than securities-based loans where there is a daily margin requirement and real estate loans). Such loans include loans to investment funds (managed by third parties) that are collateralized by capital commitments of the funds’ investors or assets held by the fund. Other collateralized loans also includes loans extended to clients who warehouse assets (that are directly or indirectly secured by corporate loans, consumer loans and other assets), as well as other secured loans extended to the firm’s wealth management and corporate clients.

•Credit Cards. Credit card loans are loans made pursuant to revolving lines of credit issued to consumers by the firm.

•Other. Other loans primarily includes unsecured loans extended to wealth management clients and unsecured consumer loans purchased by the firm.

See Note 4 for an overview of the firm’s fair value measurement policies, valuation techniques and significant inputs used to determine the fair value of loans, and Note 5 for information about loans within the fair value hierarchy.

Credit Quality

Risk Assessment. The firm’s risk assessment process includes evaluating the credit quality of its loans by Risk. For corporate loans and a majority of securities-based, real estate, other collateralized and other loans, the firm performs credit analyses which incorporate initial and ongoing evaluations of the capacity and willingness of a borrower to meet its financial obligations. These credit evaluations are performed on an annual basis or more frequently if deemed necessary as a result of events or changes in circumstances. The firm determines an internal credit rating for the borrower by considering the results of the credit evaluations and assumptions with respect to the nature of and outlook for the borrower’s industry and the economic environment. For collateralized loans, the firm also takes into consideration collateral received or other credit support arrangements when determining an internal credit rating. For loans that are not assigned an internal credit rating, including credit card loans and U.S. residential mortgage loans extended to wealth management clients, the firm reviews certain key metrics, including, but not limited to, the Fair Isaac Corporation (FICO) credit scores, loan-to-value ratios, delinquency status, collateral value and other risk factors. In the first quarter of 2026, the firm began assessing the credit quality of all securities-based loans extended to Goldman Sachs Private Bank Select clients using an internal credit rating, as the firm believes that this metric better reflects the credit quality of such loans. The impact of applying this methodology as of December 2025 would have been an increase in loans classified as investment-grade and a decrease in loans classified as other metrics, each by $4.54 billion.

The table below presents gross loans by an internally determined public rating agency equivalent or other credit metrics and the concentration of secured and unsecured loans.


$ in millions	Investment-Grade			Non-Investment- Grade			Other Metrics/Unrated			Total
As of June 2026
Accounting Method
Amortized cost	$	173,324		$	48,950		$	12,117		$	234,391
Fair value	989			606			3,045			4,640
Held for sale	1,775			2,730			19,540			24,045
Total	$	176,088		$	52,286		$	34,702		$	263,076
Loan Type
Corporate	$	12,172		$	23,357		$	35		$	35,564
Real estate:
Commercial	29,852			10,357			100			40,309
Residential	18,444			2,615			14,483			35,542
Securities-based	18,275			809			26			19,110
Other collateralized	93,906			14,558			527			108,991


Credit cards	–			–			19,506			19,506
Other	3,439			590			25			4,054
Total	$	176,088		$	52,286		$	34,702		$	263,076

Secured	93		%	88		%	43		%	86		%
Unsecured	7		%	12		%	57		%	14		%
Total	100		%	100		%	100		%	100		%
As of December 2025
Accounting Method
Amortized cost	$	149,682		$	47,675		$	15,554		$	212,911
Fair value	595			1,025			3,285			4,905
Held for sale	695			1,578			19,793			22,066
Total	$	150,972		$	50,278		$	38,632		$	239,882
Loan Type
Corporate	$	9,243		$	21,432		$	1		$	30,676
Real estate:
Commercial	25,529			11,763			117			37,409
Residential	16,190			2,262			13,505			31,957
Securities-based	13,130			343			4,606			18,079
Other collateralized	84,179			14,231			589			98,999
Credit cards	–			–			19,742			19,742
Other	2,701			247			72			3,020
Total	$	150,972		$	50,278		$	38,632		$	239,882

Secured	94		%	90		%	49		%	86		%
Unsecured	6		%	10		%	51		%	14		%
Total	100		%	100		%	100		%	100		%

In the table above:

•Substantially all residential real estate loans included in the other metrics/unrated category consists of loans extended to wealth management clients. As of both June 2026 and December 2025, substantially all such loans had a loan-to-value ratio of less than 80% and were performing in accordance with the contractual terms. Additionally, as of both June 2026 and December 2025, the vast majority of such loans had a FICO credit score of greater than 740.

•The vast majority of securities-based loans included in the other metrics/unrated category as of December 2025 had a loan-to-value ratio of less than 80% and were performing in accordance with the contractual terms.

•For credit card loans included in the other metrics/unrated category, the evaluation of credit quality incorporates the borrower’s FICO credit score. During 2025, the firm transferred the Apple Card loan portfolio to held for sale.

The firm also assigns a regulatory risk rating to its loans based on the definitions provided by the U.S. federal bank regulatory agencies. Total loans included 96% of loans as of June 2026 and 95% of loans as of December 2025 that were rated pass/non-criticized.

Vintage. The tables below present gross loans accounted for at amortized cost by an internally determined public rating agency equivalent or other credit metrics and origination year for term loans.


	As of June 2026
$ in millions	Investment- Grade			Non-Investment- Grade			Other Metrics/ Unrated			Total
2026	$	1,459		$	2,475		$	–		$	3,934
2025	2,348			2,613			–			4,961
2024	1,088			1,429			–			2,517
2023	702			645			–			1,347
2022	471			703			–			1,174
2021 or earlier	472			2,732			–			3,204
Revolving	5,191			11,229			19			16,439
Revolving converted to term	–			87			–			87
Corporate	11,731			21,913			19			33,663
2026	3,081			1,420			40			4,541
2025	4,292			1,926			48			6,266
2024	3,086			847			–			3,933
2023	945			358			–			1,303
2022	777			895			–			1,672
2021 or earlier	1,445			2,076			11			3,532
Revolving	15,756			2,129			–			17,885
Revolving converted to term	175			70			–			245
Commercial real estate	29,557			9,721			99			39,377
2026	2,239			700			1,568			4,507
2025	1,233			265			2,867			4,365
2024	51			31			1,234			1,316
2023	68			–			1,004			1,072
2022	85			41			2,258			2,384
2021 or earlier	9			86			2,589			2,684
Revolving	14,631			1,479			–			16,110
Residential real estate	18,316			2,602			11,520			32,438
2026	10			363			–			373
2025	5			–			–			5
2024	1,212			113			–			1,325
2023	8			–			–			8
2022	5			–			–			5

Revolving	17,035			333			26			17,394
Securities-based	18,275			809			26			19,110
2026	6,708			2,398			52			9,158
2025	10,600			3,804			132			14,536
2024	3,330			1,808			66			5,204
2023	1,620			747			81			2,448
2022	426			95			18			539
2021 or earlier	1,019			82			83			1,184
Revolving	67,958			4,360			21			72,339
Revolving converted to term	377			24			–			401
Other collateralized	92,038			13,318			453			105,809
2026	1,146			185			–			1,331
2025	477			63			–			540
2024	50			31			–			81
2023	80			–			–			80
2022	16			1			–			17
2021 or earlier	27			3			–			30
Revolving	1,611			304			–			1,915
Other	3,407			587			–			3,994
Total	$	173,324		$	48,950		$	12,117		$	234,391
Percentage of total	74		%	21		%	5		%	100		%


	As of December 2025
$ in millions	Investment- Grade			Non-Investment- Grade			Other Metrics/ Unrated			Total
2025	$	2,153		$	3,840		$	–		$	5,993
2024	623			1,645			–			2,268
2023	705			723			–			1,428
2022	680			838			–			1,518
2021	75			1,756			–			1,831
2020 or earlier	477			1,529			–			2,006
Revolving	4,419			9,881			1			14,301
Revolving converted to term	–			87			–			87
Corporate	9,132			20,299			1			29,432
2025	3,452			2,866			88			6,406
2024	3,653			1,058			–			4,711
2023	993			545			28			1,566
2022	858			1,225			1			2,084
2021	390			1,730			–			2,120
2020 or earlier	851			1,272			–			2,123
Revolving	14,440			2,523			–			16,963
Revolving converted to term	185			103			–			288
Commercial real estate	24,822			11,322			117			36,261
2025	1,242			274			2,692			4,208
2024	89			38			1,434			1,561
2023	90			–			1,155			1,245
2022	86			41			2,367			2,494
2021	15			74			2,453			2,542
2020 or earlier	–			19			307			326
Revolving	14,624			1,700			–			16,324
Residential real estate	16,146			2,146			10,408			28,700
2025	5			–			–			5
2024	1,750			38			–			1,788
2023	38			–			–			38
2022	5			–			–			5


Revolving	11,332			305			4,606			16,243
Securities-based	13,130			343			4,606			18,079
2025	10,064			4,475			135			14,674
2024	4,158			1,881			78			6,117
2023	2,355			735			93			3,183
2022	614			178			24			816
2021	725			233			48			1,006
2020 or earlier	590			63			44			697
Revolving	64,769			5,754			–			70,523
Revolving converted to term	503			–			–			503
Other collateralized	83,778			13,319			422			97,519
2025	618			56			–			674
2024	251			72			–			323
2023	81			11			–			92
2022	22			1			–			23
2021	22			–			–			22
2020 or earlier	–			3			–			3
Revolving	1,680			103			–			1,783
Other	2,674			246			–			2,920
Total	$	149,682		$	47,675		$	15,554		$	212,911
Percentage of total	70		%	23		%	7		%	100		%

Credit Concentrations. The table below presents the concentration of gross loans by region.


$ in millions	Carrying Value		Americas		EMEA		Asia		Total
As of June 2026
Corporate	$	35,564	62	%	26	%	12	%	100	%
Commercial real estate	40,309		79	%	17	%	4	%	100	%
Residential real estate	35,542		91	%	7	%	2	%	100	%
Securities-based	19,110		84	%	16	%	–		100	%
Other collateralized	108,991		79	%	19	%	2	%	100	%


Credit cards	19,506		100	%	–		–		100	%
Other	4,054		95	%	5	%	–		100	%
Total	$	263,076	80	%	17	%	3	%	100	%
As of December 2025
Corporate	$	30,676	66	%	25	%	9	%	100	%
Commercial real estate	37,409		76	%	20	%	4	%	100	%
Residential real estate	31,957		92	%	7	%	1	%	100	%
Securities-based	18,079		78	%	22	%	–		100	%
Other collateralized	98,999		80	%	18	%	2	%	100	%
Credit cards	19,742		100	%	–		–		100	%
Other	3,020		97	%	3	%	–		100	%
Total	$	239,882	81	%	16	%	3	%	100	%

In the table above:

•EMEA represents Europe, Middle East and Africa.

•The top five industry concentrations for corporate loans as of June 2026 were 24% for technology, media & telecommunications, 21% for diversified industrials, 15% for real estate, 9% for consumer & retail and 9% for financial institutions.

•The top five industry concentrations for corporate loans as of December 2025 were 26% for technology, media & telecommunications, 18% for diversified industrials, 16% for real estate, 10% for consumer & retail and 8% for financial institutions.

Nonaccrual, Past Due and Modified Loans. Loans accounted for at amortized cost are placed on nonaccrual status when it is probable that the firm will not collect all principal and interest due under the contractual terms, regardless of the delinquency status or if a loan is past due for 90 days or more, unless the loan is both well collateralized and in the process of collection. At that time, all accrued but uncollected interest is reversed against interest income and interest subsequently collected is recognized on a cash basis to the extent the loan balance is deemed collectible. Otherwise, all cash received is used to reduce the outstanding loan balance. A loan is considered past due when a principal or interest payment has not been made according to its contractual terms.

The table below presents information about past due loans accounted for at amortized cost.


$ in millions	30-89 days		90 days or more		Total
As of June 2026
Corporate	$	75	$	157	$	232
Commercial real estate	103		468		571
Residential real estate	–		15		15
Securities-based	4		–		4
Other collateralized	–		6		6


Other	23		–		23
Total	$	205	$	646	$	851
Total divided by gross loans at amortized cost					0.4		%

As of December 2025
Corporate	$	–	$	32	$	32
Commercial real estate	336		281		617
Residential real estate	3		19		22
Securities-based	2		–		2
Other collateralized	57		6		63


Other	–		34		34
Total	$	398	$	372	$	770
Total divided by gross loans at amortized cost					0.4		%

The table below presents information about nonaccrual loans accounted for at amortized cost.



	As of
	June			December
$ in millions	2026			2025
Corporate	$	1,784		$	2,065
Commercial real estate	1,186			1,079
Residential real estate	72			85

Other collateralized	424			121
Other	20			37
Total	$	3,486		$	3,387
Total divided by gross loans at amortized cost	1.5		%	1.6		%

In the table above:

•Nonaccrual loans included $813 million as of June 2026 and $756 million as of December 2025 of loans that were 30 days or more past due.

•Loans that were 90 days or more past due and still accruing were not material as of both June 2026 and December 2025.

•Allowance for loan losses as a percentage of total nonaccrual loans was 62.8% as of June 2026 and 63.4% as of December 2025.

•Commercial real estate, residential real estate, securities-based and other collateralized loans are collateral dependent loans and the repayment of such loans is generally expected to be provided by the operation or sale of the underlying collateral. The allowance for credit losses for such nonaccrual loans is determined by considering the fair value of the collateral less estimated costs to sell, if applicable. See Note 4 for further information about fair value measurements.

The firm may modify the terms of a loan agreement for a borrower experiencing financial difficulty. Such modifications may include, among other things, forbearance of interest or principal, payment extensions or interest rate reductions.

The table below presents the carrying value of loans accounted for at amortized cost, as of both June 2026 and June 2025, that were modified during each of the three and six months ended June 2026 and June 2025.



	Three Months Ended June				Six Months Ended June
$ in millions	2026		2025		2026		2025
Modified loans	$	229	$	245	$	328	$	491

In the table above:

•Loan modifications during each of the three and six months ended June 2026 and June 2025 were primarily in the form of term and payment extensions. The impact of these modifications for each of the three and six months ended June 2026 and June 2025 was not material.

•As of June 2026, all of the modified loans were related to corporate, commercial real estate and residential real estate loans. Such modified loans represented less than 1% for each of corporate loans (at amortized cost), commercial real estate loans (at amortized cost) and residential real estate loans (at amortized cost).

•As of June 2025, substantially all of the modified loans were related to corporate, commercial real estate and credit card loans. Such modified loans represented approximately 1% of corporate loans (at amortized cost), and less than 1% of both commercial real estate loans (at amortized cost) and credit card loans (at amortized cost).

•Lending commitments related to modified loans were not material as of June 2026 and $149 million as of June 2025.

•During each of the three and six months ended June 2026 and June 2025, loans that defaulted after being modified were not material. Substantially all of the modified loans were performing in accordance with the modified contractual terms as of both June 2026 and June 2025.

Allowance for Credit Losses

The firm’s allowance for credit losses consists of the allowance for losses on loans and lending commitments accounted for at amortized cost. Loans and lending commitments accounted for at fair value or accounted for at the lower of cost or fair value are not subject to an allowance for credit losses.

To determine the allowance for credit losses, the firm classifies its loans and lending commitments accounted for at amortized cost into loan portfolios based on the level at which the firm has developed and documented its methodology to determine the allowance for credit losses. Following the transfer of the Apple Card loan portfolio to held for sale in December 2025, all of the firm’s loans and lending commitments subject to the allowance for credit losses are classified in the wholesale portfolio. The allowance for credit losses is measured on a collective basis for loans that exhibit similar risk characteristics using a modeled approach and on an asset-specific basis for loans that do not share similar risk characteristics.

The allowance for credit losses takes into account the weighted average of a range of forecasts of future economic conditions over the expected life of the loans and lending commitments. The expected life of each loan or lending commitment is determined based on the contractual term adjusted for extension options or demand features. The forecasts include multiple economic scenarios over a three-year period. For loans with expected lives beyond three years, the model reverts to historical loss information based on a non-linear modeled approach. The forecasted economic scenarios consider a number of risk factors relevant to the wholesale portfolio, as described below. The firm applies judgment in weighting individual scenarios each quarter based on a variety of factors, including the firm’s internally derived economic outlook, market consensus, recent macroeconomic conditions and industry trends.

The allowance for credit losses for wholesale loans and lending commitments that exhibit similar risk characteristics is measured using a modeled approach. These models determine the probability of default and loss given default based on various risk factors, including internal credit ratings, industry default and loss data, expected life, macroeconomic indicators, the borrower’s capacity to meet its financial obligations, the borrower’s country of risk and industry, loan seniority and collateral type. For lending commitments, the methodology also considers the probability of drawdowns or funding. In addition, for loans backed by real estate, risk factors include the loan-to-value ratio, debt service ratio and home price index. The most significant inputs to the forecast model for wholesale loans and lending commitments include unemployment rates, GDP, credit spreads, commercial and industrial delinquency rates, short- and long-term interest rates, and oil prices.

The allowance for loan losses for wholesale loans that do not share similar risk characteristics, such as nonaccrual loans, is calculated using the present value of expected future cash flows discounted at the loan’s effective interest rate, the observable market price of the loan, or, in the case of collateral dependent loans, the fair value of the collateral less estimated costs to sell, if applicable. Wholesale loans are charged off against the allowance for loan losses when such loans are determined to be uncollectible. Such determination is based on several factors, which may include the expected outcome of loan restructuring efforts and the valuation of the underlying collateral.

The allowance for credit losses also includes qualitative components which allow management to reflect the uncertain nature of economic forecasting, capture uncertainty regarding model inputs, and account for model imprecision and concentration risk. The qualitative factors considered by management include, among others, changes and trends in loan portfolios, uncertainties associated with the macroeconomic and geopolitical environments, credit concentrations, changes in volume and severity of past due and criticized loans, idiosyncratic events and deterioration within an industry or region.

Management’s estimate of credit losses entails judgment about the expected life of the loan and loan collectability at the reporting dates, and there are uncertainties inherent in those judgments. The allowance for credit losses is subject to a governance process that involves senior management within Risk and Controllers. Personnel within Risk are responsible for forecasting the economic variables that underlie the economic scenarios that are used in the modeling of expected credit losses. While management uses the best information available to determine this estimate, future adjustments to the allowance may be necessary based on, among other things, changes in the economic environment or variances between actual results and the original assumptions used.

The table below presents gross loans and lending commitments accounted for at amortized cost, all of which are included in the wholesale portfolio.


	As of

	June 2026				December 2025
$ in millions	Loans		Lending Commitments		Loans		Lending Commitments
Corporate	$	33,663	$	220,279	$	29,432	$	179,236
Commercial real estate	39,377		10,079		36,261		7,109
Residential real estate	32,438		3,847		28,700		3,017
Securities-based	19,110		923		18,079		784
Other collateralized	105,809		53,834		97,519		47,741
Other	3,994		1,177		2,920		1,085
Total	$	234,391	$	290,139	$	212,911	$	238,972

In the table above, loans included $3.49 billion as of June 2026 and $3.39 billion as of December 2025 of nonaccrual loans for which the allowance for credit losses was measured on an asset-specific basis. The allowance for credit losses on these loans was $985 million as of June 2026 and $975 million as of December 2025. These loans included $486 million as of June 2026 and $656 million as of December 2025 of loans which did not require a reserve as the loan was deemed to be recoverable.

See Note 18 for further information about lending commitments.

Allowance for Credit Losses Rollforward

The table below presents information about the allowance for credit losses.


$ in millions	Wholesale			Consumer			Total
Three Months Ended June 2026
Allowance for loan losses
Beginning balance	$	2,345		$	–		$	2,345
Charge-offs	(185)			–			(185)
Recoveries	–			–			–
Net (charge-offs)/recoveries	(185)			–			(185)
Provision	124			–			124
Other	(96)			–			(96)
Ending balance	$	2,188		$	–		$	2,188

Allowance ratio	0.9		%	–			0.9		%
Net charge-off ratio	0.3		%	–			0.3		%
Allowance for losses on lending commitments
Beginning balance	$	792		$	–		$	792
Provision	(21)			–			(21)
Other	–			–			–
Ending balance	$	771		$	–		$	771

Three Months Ended June 2025
Allowance for loan losses
Beginning balance	$	2,060		$	2,448		$	4,508
Charge-offs	(6)			(329)			(335)
Recoveries	4			41			45
Net (charge-offs)/recoveries	(2)			(288)			(290)
Provision	34			307			341
Other	(22)			–			(22)
Ending balance	$	2,070		$	2,467		$	4,537

Allowance ratio	1.1		%	12.8		%	2.1		%
Net charge-off ratio	–			6.1		%	0.6		%
Allowance for losses on lending commitments
Beginning balance	$	707		$	–		$	707
Provision	40			–			40
Other	2			–			2
Ending balance	$	749		$	–		$	749

Six Months Ended June 2026
Allowance for loan losses
Beginning balance	$	2,148		$	–		$	2,148
Charge-offs	(208)			–			(208)
Recoveries	14			–			14
Net (charge-offs)/recoveries	(194)			–			(194)
Provision	377			–			377
Other	(143)			–			(143)
Ending balance	$	2,188		$	–		$	2,188

Allowance ratio	0.9		%	–			0.9		%
Net charge-off ratio	0.2		%	–			0.2		%
Allowance for losses on lending commitments
Beginning balance	$	731		$	–		$	731
Provision	41			–			41
Other	(1)			–			(1)
Ending balance	$	771		$	–		$	771

Six Months Ended June 2025
Allowance for loan losses
Beginning balance	$	2,099		$	2,567		$	4,666
Charge-offs	(66)			(686)			(752)
Recoveries	10			76			86
Net (charge-offs)/recoveries	(56)			(610)			(666)
Provision	101			510			611
Other	(74)			–			(74)
Ending balance	$	2,070		$	2,467		$	4,537

Allowance ratio	1.1		%	12.8		%	2.1		%
Net charge-off ratio	0.1		%	6.4		%	0.7		%
Allowance for losses on lending commitments
Beginning balance	$	674		$	–		$	674
Provision	72			–			72
Other	3			–			3
Ending balance	$	749		$	–		$	749

In the table above:

•During 2025, the firm had credit card loans accounted for at amortized cost that were included in the consumer portfolio. Such loans were transferred to held for sale in December 2025. The allowance for credit losses for consumer loans that exhibited similar risk characteristics was calculated using a modeled approach which classified consumer loans into pools based on borrower-related and exposure-related characteristics that differentiated a pool’s risk characteristics from other pools. Credit card loans were charged off when they were 180 days past due.

•Other (within allowance for loan losses) primarily represented the reduction to the allowance related to loans transferred to held for sale.

•The allowance ratio is calculated by dividing the allowance for loan losses by gross loans accounted for at amortized cost.

•The net charge-off ratio is calculated by dividing annualized net (charge-offs)/recoveries by average gross loans accounted for at amortized cost.

Forecast Model Inputs as of June 2026

When modeling expected credit losses, the firm employs a weighted, multi-scenario forecast, which includes baseline, favorable and adverse economic scenarios. As of June 2026, this multi-scenario forecast was weighted towards the baseline and adverse economic scenarios.

The table below presents the forecasted U.S. unemployment and U.S. GDP growth rates used in the baseline economic scenario of the forecast model.


As of June 2026
U.S. unemployment rate
Forecast for the quarter ended:
December 2026	4.7	%
June 2027	4.6	%
December 2027	4.5	%

U.S. GDP rate
Forecast for the year:
2026	1.9	%
2027	1.8	%
2028	1.9	%

In the table above:

•U.S. unemployment rate represents the rate forecasted as of the respective quarter-end.

•U.S. GDP rate represents the year-over-year growth rate forecasted for the respective years.

The adverse economic scenario of the forecast model reflects a global recession, resulting in an economic contraction and rising unemployment rates. In this scenario, the U.S. unemployment rate peaks at 7.4% (during the third quarter of 2027) and the maximum decline in quarterly U.S. GDP relative to the second quarter of 2026 is 2.7% (which occurs during the second quarter of 2027).

In the multi-scenario forecast, the weighted average peak U.S. unemployment rate is 5.5% (during the third quarter of 2027) and the largest difference in quarterly U.S. GDP between the baseline scenario and the weighted average is 1.7% (which occurs during the fourth quarter of 2027).

While the U.S. unemployment and U.S. GDP growth rates are significant inputs to the forecast model, the model contemplates a variety of other inputs across a range of scenarios to provide a forecast of future economic conditions. Given the complex nature of the forecasting process, no single economic variable can be viewed in isolation and independently of other inputs.

Allowance for Credit Losses Commentary

Three Months Ended June 2026. The allowance for credit losses decreased by $178 million during the three months ended June 2026, primarily due to charge-offs and transfers of loans to held for sale, partially offset by portfolio growth and asset-specific provisions.

Charge-offs for the three months ended June 2026 for wholesale loans were related to commercial real estate loans, principally related to term loans originated in 2021.

Six Months Ended June 2026. The allowance for credit losses increased by $80 million during the six months ended June 2026, reflecting portfolio growth and asset-specific provisions, partially offset by charge-offs and transfers of loans to held for sale.

Charge-offs for the six months ended June 2026 for wholesale loans were primarily related to commercial real estate loans, principally related to term loans originated in 2021.

Three Months Ended June 2025. The allowance for credit losses increased by $71 million during the three months ended June 2025, reflecting growth in the credit card and wholesale portfolios.

Charge-offs for the three months ended June 2025 for wholesale loans were not material.

Six Months Ended June 2025. The allowance for credit losses decreased by $54 million during the six months ended June 2025, primarily reflecting a reserve release due to lower balances in credit card loans resulting from seasonal repayments.

Charge-offs for the six months ended June 2025 for wholesale loans were not material.

Estimated Fair Value

The table below presents the estimated fair value of loans that are not accounted for at fair value and in what level of the fair value hierarchy they would have been classified if they had been included in the firm’s fair value hierarchy.


	Carrying Value		Estimated Fair Value
$ in millions			Level 2		Level 3		Total
As of June 2026
Amortized cost	$	232,203	$	122,835	$	109,603	$	232,438
Held for sale	$	24,045	$	21,916	$	2,431	$	24,347
As of December 2025
Amortized cost	$	210,763	$	113,861	$	97,210	$	211,071
Held for sale	$	22,066	$	21,383	$	694	$	22,077