Allowance for credit losses

For detailed discussion of the allowance for credit losses and the related accounting policies, see Note 15 of JPMorgan Chase’s 2014 Annual Report.

Allowance for credit losses and loans and lending-related commitments by impairment methodology

The table below summarizes information about the allowance for loan losses, loans by impairment methodology, the allowance for lending-related commitments and lending-related commitments by impairment methodology.



	2015													2014
Three months ended March 31, (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,	$	7,050		$	3,439			$	3,696		$	14,185		8,456			$	3,795			$	4,013		$	16,264
Gross charge-offs	440			883				29			1,352			569			995				68			1,632
Gross recoveries	(176		)	(94		)		(30		)	(300		)	(201		)	(107		)		(55		)	(363		)
Net charge-offs/(recoveries)	264			789				(1		)	1,052			368			888				13			1,269
Write-offs of PCI loans^(a)	55			—				—			55			61			—				—			61
Provision for loan losses	141			789				58			988			119			688				110			917
Other	—			(5		)		4			(1		)	1			(4		)		(1		)	(4		)
Ending balance at March 31,	$	6,872		$	3,434			$	3,759		$	14,065		$	8,147		$	3,591			$	4,109		$	15,847

Allowance for loan losses by impairment methodology
Asset-specific^(b)	$	537		$	458		^(c)	$	115		$	1,110		$	607		$	606		^(c)	$	144		$	1,357
Formula-based	3,065			2,976				3,644			9,685			3,443			2,985				3,965			10,393
PCI	3,270			—				—			3,270			4,097			—				—			4,097
Total allowance for loan losses	$	6,872		$	3,434			$	3,759		$	14,065		$	8,147		$	3,591			$	4,109		$	15,847

Loans by impairment methodology
Asset-specific	$	11,414		$	1,852			$	743		$	14,009		$	13,546		$	2,768			$	763		$	17,077
Formula-based	248,147			118,983				330,472			697,602			222,778			118,744				310,949			652,471
PCI	45,356			—				4			45,360			51,606			—				6			51,612
Total retained loans	$	304,917		$	120,835			$	331,219		$	756,971		$	287,930		$	121,512			$	311,718		$	721,160

Impaired collateral-dependent loans
Net charge-offs	$	16		$	—			$	1		$	17		$	51		$	—			$	—		$	51
Loans measured at fair value of collateral less cost to sell	2,912			—				269			3,181			3,333			—				331			3,664

Allowance for lending-related commitments
Beginning balance at January 1,	$	13		$	—			$	609		$	622		$	8		$	—			$	697		$	705
Provision for lending-related commitments	1			—				(30		)	(29		)	—			—				(67		)	(67		)
Other	—			—				—			—			—			—				—			—
Ending balance at March 31,	$	14		$	—			$	579		$	593		$	8		$	—			$	630		$	638

Allowance for lending-related commitments by impairment methodology
Asset-specific	$	—		$	—			$	55		$	55		$	—		$	—			$	30		$	30
Formula-based	14			—				524			538			8			—				600			608
Total allowance for lending-related commitments	$	14		$	—			$	579		$	593		$	8		$	—			$	630		$	638

Lending-related commitments by impairment methodology
Asset-specific	$	—		$	—			$	131		$	131		$	—		$	—			$	95		$	95
Formula-based	60,151			533,511				355,373			949,035			56,541			535,614				353,797			945,952
Total lending-related commitments	$	60,151		$	533,511			$	355,504		$	949,166		$	56,541		$	535,614			$	353,892		$	946,047


(a)	Write-offs of PCI loans are recorded against the allowance for loan losses when actual losses for a pool exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan is recognized when the underlying loan is removed from a pool (e.g., upon liquidation).


(b)	Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a TDR.


(c)	The asset-specific credit card allowance for loan losses is related to loans that have been modified in a TDR; such allowance is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.