XML 62 R45.htm IDEA: XBRL DOCUMENT v3.21.2
Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2021
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 of JPMorgan Chase’s 2020 Form 10-K for further information on the allowance for credit losses on investment securities.
2021
2020
Six months ended June 30,
(in millions)		Consumer, excluding
credit card		Credit cardWholesaleTotalConsumer, excluding credit cardCredit cardWholesaleTotal
Allowance for loan losses
Beginning balance at January 1,$3,636 $17,800 $6,892 $28,328 $2,538 $5,683 $4,902 $13,123 
Cumulative effect of a change in accounting principle
NANANANA297 5,517 (1,642)4,172 
Gross charge-offs308 2,213 135 2,656 425 2,863 491 3,779 
Gross recoveries collected(318)(475)(72)(865)(348)(372)(30)(750)
Net charge-offs/(recoveries)(10)1,738 63 1,791 77 2,491 461 3,029 
Provision for loan losses(1,746)(3,562)(1,730)(7,038)2,115 9,091 6,118 
(e)
17,324 
Other
(2)— 3 1 (1)— 2 1 
Ending balance at June 30,$1,898 $12,500 $5,102 $19,500 $4,872 $17,800 $8,919 $31,591 
Allowance for lending-related commitments
Beginning balance at January 1,
$187 $— $2,222 $2,409 $12 $— $1,179 $1,191 
Cumulative effect of a change in accounting principle
NANANANA133 — (35)98 
Provision for lending-related commitments
(46)— 634 588 95 — 1,326 
(e)
1,421 
Other
1 — — 1 1 — (1)— 
Ending balance at June 30,$142 $— $2,856 $2,998 $241 $— $2,469 $2,710 
Total allowance for credit losses(a)
$2,040 $12,500 $7,958 $22,498 $5,113 $17,800 $11,388 $34,301 
Allowance for loan losses by impairment methodology
Asset-specific(b)
$(557)$443 $488 $374 $263 $642 $757 $1,662 
Portfolio-based2,455 12,057 4,614 19,126 4,609 17,158 8,162 
(e)
29,929 
Total allowance for loan losses$1,898 $12,500 $5,102 $19,500 $4,872 $17,800 $8,919 $31,591 
Loans by impairment methodology
Asset-specific(b)
$15,187 $1,180 $3,010 $19,377 $16,749 $1,422 $3,849 $22,020 
Portfolio-based282,544 139,899 521,845 944,288 290,256 140,234 512,938 943,428 
Total retained loans$297,731 $141,079 $524,855 $963,665 $307,005 $141,656 $516,787 $965,448 
Collateral-dependent loans
Net charge-offs$23 $— $6 $29 $56 $— $22 $78 
Loans measured at fair value of collateral less cost to sell
4,689 — 341 5,030 3,505 — 166 3,671 
Allowance for lending-related commitments by impairment methodology
Asset-specific
$— $— $150 $150 $— $— $115 $115 
Portfolio-based
142 — 2,706 2,848 241 — 2,354 
(e)
2,595 
Total allowance for lending-related commitments(c)
$142 $— $2,856 $2,998 $241 $— $2,469 $2,710 
Lending-related commitments by impairment methodology
Asset-specific
$— $— $851 $851 $— $— $762 $762 
Portfolio-based(d)
36,092 — 459,078 495,170 35,417 — 391,121 426,538 
Total lending-related commitments
$36,092 $— $459,929 $496,021 $35,417 $— $391,883 $427,300 
(a)Excludes the allowance for credit losses on investment securities of $87 million and $23 million as of June 30, 2021 and 2020, respectively.
(b)Includes collateral dependent loans, including those considered TDRs and those for which foreclosure is deemed probable, modified PCD loans and non-collateral dependent 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 June 30, 2021 and 2020, lending-related commitments excluded $20.8 billion and $9.9 billion, respectively, for the consumer, excluding credit card portfolio segment; $682.5 billion and $673.8 billion, respectively, for the credit card portfolio segment; and $42.7 billion and $21.5 billion, respectively, for the wholesale portfolio segment, which were not subject to the allowance for lending-related commitments.
(e)Prior-period amounts have been revised to conform with the current presentation.
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 June 30, 2021
4Q212Q224Q22
U.S. unemployment rate(a)
4.7 %4.0 %3.8 %
Cumulative change in U.S. real GDP from 12/31/20194.3 %6.0 %7.3 %
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.