v3.26.3
Allowance for Credit Losses
 9 Months Ended
Sep. 30, 2026
Credit Loss [Abstract]  
Allowance for Credit Losses 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 2025 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 2025 Form 10-K and Note 9 of this Form 10-Q for further information on the allowance for credit losses on investment securities.
2026
2025
Nine months ended September 30,
(in millions)
Consumer, excluding
credit card		Credit cardWholesaleTotalConsumer, excluding credit cardCredit cardWholesaleTotal
Allowance for loan losses
Beginning balance at January 1,$1,920 $15,557 $8,288 $25,765 $1,807 $14,600 $7,938 $24,345 
Gross charge-offs763 7,298 688 8,749 814 6,865 1,262 8,941 
Gross recoveries collected(333)(1,403)(127)(1,863)(410)(1,088)(108)(1,606)
Net charge-offs/(recoveries)430 5,895 561 6,886 404 5,777 1,154 7,335 
Provision for loan losses310 5,899 1,189 7,398 500 6,731 1,489 8,720 
Other— (1)(4)(5)— — 5 5 
Ending balance at September 30,$1,800 $15,560 $8,912 $26,272 $1,903 $15,554 $8,278 $25,735 
Allowance for lending-related commitments
Beginning balance at January 1,$83 $2,200 
(e)
$2,788 $5,071 $82 $— $2,019 $2,101 
Provision for lending-related commitments(8)100 
(e)
453 545 2 — 860 862 
Other— — (6)(6)— — 1 1 
Ending balance at September 30,$75 $2,300 $3,235 $5,610 $84 $— $2,880 $2,964 
Total allowance for investment securitiesNANANA47 NANANA105 
Total allowance for credit losses(a)
$1,875 $17,860 $12,147 $31,929 $1,987 $15,554 $11,158 $28,804 
Allowance for loan losses by impairment methodology
Asset-specific(b)
$(615)$— $774 $159 $(621)$— $838 $217 
Portfolio-based2,415 15,560 8,138 26,113 2,524 15,554 7,440 25,518 
Total allowance for loan losses$1,800 $15,560 $8,912 $26,272 $1,903 $15,554 $8,278 $25,735 
Loans by impairment methodology
Asset-specific(b)
$3,357 $— $4,202 $7,559 $3,366 $— $4,895 $8,261 
Portfolio-based363,849 252,697 873,054 1,489,600 366,493 235,475 759,556 1,361,524 
Total retained loans$367,206 $252,697 $877,256 $1,497,159 $369,859 $235,475 $764,451 $1,369,785 
Collateral-dependent loans
Net charge-offs$3 $— $153 $156 $— $— $474 $474 
Loans measured at fair value of collateral less cost to sell3,357 — 1,675 5,032 3,316 — 1,919 5,235 
Allowance for lending-related commitments by impairment methodology
Asset-specific$— $— $95 $95 $— $— $131 $131 
Portfolio-based75 2,300 
(e)
3,140 5,515 84 — 2,749 2,833 
Total allowance for lending-related commitments(c)
$75 $2,300 $3,235 $5,610 $84 $— $2,880 $2,964 
Lending-related commitments by impairment methodology
Asset-specific$— $— $717 $717 $— $— $1,025 $1,025 
Portfolio-based(d)
22,506 25,130 
(f)
594,320 641,956 25,588 601 544,764 570,953 
Total lending-related commitments$22,506 $25,130 $595,037 $642,673 $25,588 $601 $545,789 $571,978 
On January 7, 2026, JPMorganChase announced that Chase will become the new issuer of Apple Card. The Firm entered into a forward purchase commitment on December 30, 2025 to acquire the Apple credit card portfolio (the “Apple Card transaction”), with an expected closing date approximately 24 months thereafter. Refer to Notes 4, 13, 27 and 28 of JPMorganChase’s 2025 Form 10-K for additional information.
(a)At September 30, 2026 and 2025, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for credit losses of $119 million and $285 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 September 30, 2026 and 2025, lending-related commitments excluded $25.2 billion and $22.4 billion, respectively, for the consumer, excluding credit card portfolio segment; $1.2 trillion and $1.1 trillion, respectively, for the credit card portfolio segment; and $39.8 billion and $50.2 billion, respectively, for the wholesale portfolio segment, which were not subject to the allowance for lending-related commitments.
(e)Represents the impact of the Apple Card transaction.
(f)Included approximately $24 billion related to the Apple Card transaction. Refer to Note 13 of the Firm's 2025 Form 10-K for additional information.
Discussion of changes in the allowance
The allowance for credit losses as of September 30, 2026 was $32.0 billion, reflecting a net addition of $819 million from December 31, 2025.
The net addition to the allowance for credit losses included:
• $902 million in wholesale, largely driven by the impact of net increases in the loan and lending-related commitment portfolios and changes in the credit quality of certain exposures, and
•a net reduction of $24 million in consumer, driven by updates to certain macroeconomic variables, including improvements in home prices in the first quarter of 2026, predominantly offset by loan growth.
The Firm's qualitative adjustments and its weighted-average macroeconomic outlook continued to include additional weight placed on the adverse scenarios to reflect ongoing uncertainties and downside risks related to the geopolitical and macroeconomic environment.
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 5.6% in the third quarter of 2027, and
•a weighted average U.S. real GDP level that is 2.3% lower than the central case at the end of the fourth quarter of 2027.
The following table presents the Firm’s central case assumptions for the periods presented:
Central case assumptions
at September 30, 2026
4Q262Q274Q27
U.S. unemployment rate(a)
4.1 %4.0 %4.0 %
YoY growth in U.S. real GDP(b)
2.0 %2.2 %2.0 %
Central case assumptions
at December 31, 2025
2Q264Q262Q27
U.S. unemployment rate(a)
4.6 %4.4 %4.2 %
YoY growth in U.S. real GDP(b)
2.0 %1.8 %1.9 %
(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 2025 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.