Allowance for Credit Losses

6 Months Ended

Jun. 30, 2019

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses

Allowance for credit losses

For a detailed discussion of the allowance for credit losses and the related accounting policies, refer to Note 13 of JPMorgan Chase’s 2018 Form 10-K.

Allowance for credit losses and related information

The table below summarizes information about the allowances for loan losses and lending-related commitments, and includes a breakdown of loans and lending-related commitments by impairment methodology.

	2019													2018
Six months ended June 30, (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,	$	4,146		$	5,184			$	4,115		$	13,445		$	4,579		$	4,884			$	4,141		$	13,604
Gross charge-offs	471			2,725				150			3,346			539			2,578				241			3,358
Gross recoveries	(277		)	(283		)		(22		)	(582		)	(451		)	(244		)		(76		)	(771		)
Net charge-offs	194			2,442				128			2,764			88			2,334				165			2,587
Write-offs of PCI loans(a)	89			—				—			89			93			—				—			93
Provision for loan losses	(204		)	2,642				131			2,569			90			2,334				(98		)	2,326
Other	—			(1		)		6			5			—			—				—			—
Ending balance at June 30,	$	3,659		$	5,383			$	4,124		$	13,166		$	4,488		$	4,884			$	3,878		$	13,250
Allowance for loan losses by impairment methodology
Asset-specific(b)	$	145		$	472		(c)	$	288		$	905		$	226		$	402		(c)	$	318		$	946
Formula-based	2,215			4,911				3,836			10,962			2,130			4,482				3,560			10,172
PCI	1,299			—				—			1,299			2,132			—				—			2,132
Total allowance for loan losses	$	3,659		$	5,383			$	4,124		$	13,166		$	4,488		$	4,884			$	3,878		$	13,250
Loans by impairment methodology
Asset-specific	$	6,562		$	1,388			$	1,295		$	9,245		$	7,387		$	1,252			$	1,327		$	9,966
Formula-based	322,888			156,180				437,173			916,241			340,223			143,969				419,302			903,494
PCI	22,242			—				—			22,242			26,977			—				3			26,980
Total retained loans	$	351,692		$	157,568			$	438,468		$	947,728		$	374,587		$	145,221			$	420,632		$	940,440
Impaired collateral-dependent loans
Net charge-offs	$	19		$	—			$	8		$	27		$	14		$	—			$	—		$	14
Loans measured at fair value of collateral less cost to sell	2,098			—				83			2,181			2,124			—				300			2,424
Allowance for lending-related commitments
Beginning balance at January 1,	$	33		$	—			$	1,022		$	1,055		$	33		$	—			$	1,035		$	1,068
Provision for lending-related commitments	—			—				75			75			—			—				49			49
Other	—			—				(1		)	(1		)	—			—				—			—
Ending balance at June 30,	$	33		$	—			$	1,096		$	1,129		$	33		$	—			$	1,084		$	1,117
Allowance for lending-related commitments by impairment methodology
Asset-specific	$	—		$	—			$	136		$	136		$	—		$	—			$	139		$	139
Formula-based	33			—				960			993			33			—				945			978
Total allowance for lending-related commitments	$	33		$	—			$	1,096		$	1,129		$	33		$	—			$	1,084		$	1,117
Lending-related commitments by impairment methodology
Asset-specific	$	—		$	—			$	465		$	465		$	—		$	—			$	712		$	712
Formula-based	51,491			633,970				393,836			1,079,297			51,784			592,452				401,045			1,045,281
Total lending-related commitments	$	51,491		$	633,970			$	394,301		$	1,079,762		$	51,784		$	592,452			$	401,757		$	1,045,993

(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.

(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.