v3.26.1
Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2026
Credit Loss [Abstract]  
Forecasted Key Macroeconomic Variables Used in Estimating Lifetime ECL
The following table presents the forecasted key macroeconomic variables in our Central scenarios used for estimating lifetime ECL:
For the Quarter Ended
Dec. 31, 2026
Jun. 30, 2027
Dec. 31, 2027
Unemployment rate (quarterly average):
Forecast at June 30, 20264.5 %4.4 %4.3 %
Forecast at March 31, 20264.5 4.4 4.3 
Forecast at December 31, 20254.4 4.3 4.2 
Gross domestic product growth rate (year-over-year):
Forecast at June 30, 20262.0 %2.0 %2.0 %
Forecast at March 31, 20262.3 2.0 2.0 
Forecast at December 31, 20251.9 2.0 2.0 
Summary of Changes in the Allowance for Credit Losses by Product Line The following table summarizes the changes in the allowance for credit losses on loans by product or line of business:
Commercial LoansConsumer Loans
Commercial Mortgages(1)
Business and Corporate Banking(1)
Other
Comm'l		Residential
Mortgages		Other
Consumer		Total Loans
(in millions)
Three Months Ended June 30, 2026
Allowance for credit losses – beginning of period
$108 $363 $1 $(10)$19 $481 
Provision charged (credited) to income(37)9 (1)(6)(2)(37)
Charge-offs— (35)— (1)(2)(38)
Recoveries— 13 — 3 1 17 
Net (charge-offs) recoveries— (22)— 2 (1)(21)
Allowance for credit losses – end of period
$71 $350 $— $(14)$16 $423 
Three Months Ended June 30, 2025
Allowance for credit losses – beginning of period
$199 $423 $1 $(11)$22 $634 
Provision charged (credited) to income— 39 — (8)(2)29 
Charge-offs(27)(25)— — (2)(54)
Recoveries— 1 — 2 2 5 
Net (charge-offs) recoveries(27)(24)— 2 — (49)
Allowance for credit losses – end of period
$172 $438 $1 $(17)$20 $614 
Six Months Ended June 30, 2026
Allowance for credit losses – beginning of period
$108 $327 $1 $(12)$18 $442 
Provision charged (credited) to income(37)58 (1)(4)(1)15 
Charge-offs— (48)— (2)(4)(54)
Recoveries— 13 — 4 3 20 
Net (charge-offs) recoveries— (35)— 2 (1)(34)
Allowance for credit losses – end of period
$71 $350 $— $(14)$16 $423 
Six Months Ended June 30, 2025
Allowance for credit losses – beginning of period
$135 $390 $1 $(12)$23 $537 
Provision charged (credited) to income64 87 — (8)(2)141 
Charge-offs(27)(40)— — (4)(71)
Recoveries— 1 — 3 3 7 
Net (charge-offs) recoveries(27)(39)— 3 (1)(64)
Allowance for credit losses – end of period
$172 $438 $1 $(17)$20 $614 
(1)As discussed further in Note 4, "Loans," in the first quarter of 2026, we updated our presentation of commercial loans. Commercial mortgages previously reported within real estate, including construction are now presented as a separate category. Unsecured loans and loans that are indirectly secured by commercial real estate are now included within business and corporate banking. As a result, we have reclassified prior year amounts to conform to the current year presentation.
Summary of Changes in the Liability for Off-balance Sheet Credit Exposures
The following table summarizes the changes in the liability for off-balance sheet credit exposures:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Balance at beginning of period$162 $145 $166 $139 
Provision charged (credited) to income(1)13 (5)19 
Balance at end of period$161 $158 $161 $158 
Summary of Accrued Interest Receivables The following table summarizes accrued interest receivables associated with financial assets carried at amortized cost and securities available-for-sale along with the related allowance for credit losses, which are reported net in other assets on the consolidated balance sheet. These accrued interest receivables are excluded from the amortized cost basis disclosures presented elsewhere in these financial statements, including Note 3, "Securities," and Note 4, "Loans."
June 30, 2026December 31, 2025
(in millions)
Accrued interest receivables:
Loans$227 $222 
Securities held-to-maturity90 70 
Other financial assets measured at amortized cost15 26 
Securities available-for-sale183 169 
Total accrued interest receivables515 487 
Allowance for credit losses — — 
Accrued interest receivables, net$515 $487