XML 82 R55.htm IDEA: XBRL DOCUMENT v3.20.4
Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2020
Credit Loss [Abstract]  
Allowance for credit losses on financing receivables
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. Refer to Note 10 for further information on the allowance for credit losses on investment securities.
The adoption of the CECL accounting guidance resulted in a change in the accounting for PCI loans, which are considered PCD loans. In conjunction with the adoption of CECL, the Firm reclassified risk-rated loans and lending-related commitments from the consumer, excluding credit card portfolio segment to the wholesale portfolio segment, to align with the methodology applied when determining the allowance. Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information.
(Table continued on next page)
2020(e)
Year ended December 31,
(in millions)		Consumer,
excluding
credit card		Credit cardWholesaleTotal
Allowance for loan losses
Beginning balance at January 1,$2,538 $5,683 $4,902 $13,123 
Cumulative effect of a change in accounting principle297 5,517 (1,642)4,172 
Gross charge-offs805 

5,077 954 6,836 
Gross recoveries collected(631)(791)(155)(1,577)
Net charge-offs174 

4,286 799 5,259 
Write-offs of PCI loans(a)
NANANANA
Provision for loan losses974 10,886 4,431 16,291 
Other
1 

— — 1 
Ending balance at December 31,$3,636 $17,800 $6,892 $28,328 
Allowance for lending-related commitments
Beginning balance at January 1,
$12 $— $1,179 $1,191 
Cumulative effect of a change in accounting principle133 — (35)98 
Provision for lending-related commitments
42 — 1,079 1,121 
Other
— — (1)(1)
Ending balance at December 31,$187 $— $2,222 $2,409 
Total allowance for credit losses$3,823 $17,800 $9,114 $30,737 
Allowance for loan losses by impairment methodology
Asset-specific(b)
$(7)$633 $682 $1,308 
Portfolio-based3,643 17,167 6,210 27,020 
PCINANANANA
Total allowance for loan losses$3,636 $17,800 $6,892 $28,328 
Loans by impairment methodology
Asset-specific(b)
$16,648 $1,375 $3,606 $21,629 
Portfolio-based285,479 142,057 511,341 938,877 
PCINANANANA
Total retained loans$302,127 $143,432 $514,947 $960,506 
Collateral-dependent loans
Net charge-offs$133 

$— $76 $209 
Loans measured at fair value of collateral less cost to sell
4,956 — 188 5,144 
Allowance for lending-related commitments by impairment methodology
Asset-specific
$— $— $114 $114 
Portfolio-based187 — 2,108 2,295 
Total allowance for lending-related commitments(c)
$187 $— $2,222 $2,409 
Lending-related commitments by impairment methodology
Asset-specific
$— $— $577 $577 
Portfolio-based(d)
37,783 — 426,871 464,654 
Total lending-related commitments
$37,783 $— $427,448 $465,231 
(a)Prior to the adoption of CECL, write-offs of PCI loans were recorded against the allowance for loan losses when actual losses for a pool exceeded estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan was recognized when the underlying loan was removed from a pool.
(b)Includes modified PCD loans and loans that have been modified or are reasonably expected to be modified in a TDR. Also includes risk-rated loans that have been placed on nonaccrual status for the wholesale portfolio segment. The asset-specific credit card allowance for loans modified, or reasonably expected to be modified, in a TDR is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.
(c)The allowance for lending-related commitments is reported in accounts payable and other liabilities on the Consolidated balance sheets.
(d)At December 31, 2020, 2019 and 2018, lending-related commitments excluded $19.5 billion, $9.8 billion and $8.7 billion, respectively, for the consumer, excluding credit card portfolio segment; $658.5 billion, $650.7 billion and $605.4 billion, respectively, for the credit card portfolio segment; and $22.4 billion, $24.1 billion and $24.8 billion, respectively, for the wholesale portfolio segment, which were not subject to the allowance for lending-related commitments.
(e)Excludes HTM securities, which had an allowance for credit losses of $78 million and a provision for credit losses of $68 million as of and for the year ended December 31, 2020.
(table continued from previous page)
20192018
Consumer,
excluding
credit card		Credit cardWholesaleTotalConsumer,
excluding
credit card		Credit cardWholesaleTotal
$3,434 $5,184 $4,827 $13,445 $3,892 $4,884 $4,828 $13,604 
NANANANANANANANA
902 5,436 472 6,810 977 5,011 361 6,349 
(536)(588)(57)(1,181)(827)(493)(173)(1,493)
366 4,848 415 5,629 150 4,518 188 4,856 
151 — — 151 187 — — 187 
(378)5,348 479 5,449 (121)4,818 188 4,885 
(1)(1)11 9 — — (1)(1)
$2,538 $5,683 $4,902 $13,123 $3,434 $5,184 $4,827 $13,445 
$12 $— $1,043 $1,055 $12 $— $1,056 $1,068 
NANANANANANANANA
— — 136 136 — — (14)(14)
— — — — — — 1 1 
$12 $— $1,179 $1,191 $12 $— $1,043 $1,055 
$2,550 $5,683 $6,081 $14,314 $3,446 $5,184 $5,870 $14,500 
$75 $477 $295 $847 $143 $440 $350 $933 
1,476 5,206 4,607 11,289 1,503 4,744 4,477 10,724 
987 — — 987 1,788 — — 1,788 
$2,538 $5,683 $4,902 $13,123 $3,434 $5,184 $4,827 $13,445 
$5,961 $1,452 $1,123 $8,536 $6,665 $1,319 $1,459 $9,443 
268,675 167,472 480,555 916,702 305,077 155,297 475,561 935,935 
20,363 — — 20,363 24,034 — 3 24,037 
$294,999 $168,924 $481,678 $945,601 $335,776 $156,616 $477,023 $969,415 
$46 $— $36 $82 $16 $— $29 $45 
2,053 — 87 2,140 2,076 — 206 2,282 
$— $— $102 $102 $— $— $99 $99 
12 — 1,077 1,089 12 — 944 956 
$12 $— $1,179 $1,191 $12 $— $1,043 $1,055 
$— $— $474 $474 $— $— $469 $469 
30,417 — 392,967 423,384 26,502 — 374,996 401,498 
$30,417 $— $393,441 $423,858 $26,502 $— $375,465 $401,967 
U.S. unemployment rates and cumulative change in U.S. real GDP
The Firm’s central case assumptions reflected U.S. unemployment rates and U.S. real GDP as follows:
Assumptions at January 1, 2020
2Q20
4Q20(b)
2Q21
U.S. unemployment rate(a)
3.7%3.8%4.0%
Cumulative change in U.S. real GDP from 12/31/20190.9%1.7%2.4%
Assumptions at December 31, 2020
2Q214Q212Q22
U.S. unemployment rate(a)
6.8%5.7%5.1%
Cumulative change in U.S. real GDP from 12/31/2019(1.9)%0.6%2.0%
(a)Reflects quarterly average of forecasted U.S. unemployment rate.
(b)4Q20 actual U.S. unemployment rate (quarterly average) was 6.8%. 4Q20 actual cumulative change in U.S. real GDP from 4Q19 was (2.5%).