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Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2024
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 JPMorgan Chase's 2023 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 JPMorgan Chase’s 2023 Form 10-K and Note 9 of this Form 10-Q for further information on the allowance for credit losses on investment securities.
2024
2023
Three months ended March 31,
(in millions)
Consumer, excluding
credit card		Credit cardWholesaleTotalConsumer, excluding credit cardCredit cardWholesaleTotal
Allowance for loan losses
Beginning balance at January 1,$1,856 $12,450 $8,114 $22,420 $2,040 $11,200 $6,486 $19,726 
Cumulative effect of a change in accounting principle(a)
NANANANA(489)(100)2(587)
Gross charge-offs331 1,914 136 2,381 235 1,111 105 1,451 
Gross recoveries collected(148)(227)(50)(425)(103)(189)(22)(314)
Net charge-offs/(recoveries)183 1,687 86 1,956 132 922 83 1,137 
Provision for loan losses56 1,837 (6)1,887 247 1,222 578 2,047 
Other
1 — (1)— — — 4 4 
Ending balance at March 31,
$1,730 $12,600 $8,021 $22,351 $1,666 $11,400 $6,987 $20,053 
Allowance for lending-related commitments
Beginning balance at January 1,
$75 $— $1,899 $1,974 $76 $— $2,306 $2,382 
Provision for lending-related commitments
21 — (81)(60)1 — (14)(13)
Other
— — 2 2 — — 1 1 
Ending balance at March 31,
$96 $— $1,820 $1,916 $77 $— $2,293 $2,370 
Total allowance for investment securitiesNANANA154 NANANA90 
Total allowance for credit losses(b)(c)
$1,826 $12,600 $9,841 $24,421 $1,743 $11,400 $9,280 $22,513 
Allowance for loan losses by impairment methodology
Asset-specific(d)
$(873)$— $514 $(359)$(1,030)$— $437 $(593)
Portfolio-based2,603 12,600 7,507 22,710 2,696 11,400 6,550 20,646 
Total allowance for loan losses$1,730 $12,600 $8,021 $22,351 $1,666 $11,400 $6,987 $20,053 
Loans by impairment methodology
Asset-specific(d)
$3,216 $— $2,927 $6,143 $3,560 $— $2,189 $5,749 
Portfolio-based386,376 206,740 664,834 1,257,950 296,887 180,079 602,135 1,079,101 
Total retained loans$389,592 $206,740 $667,761 $1,264,093 $300,447 $180,079 $604,324 $1,084,850 
Collateral-dependent loans
Net charge-offs$3 $— $47 $50 $4 $— $18 $22 
Loans measured at fair value of collateral less cost to sell
3,260 — 1,131 4,391 3,539 — 586 4,125 
Allowance for lending-related commitments by impairment methodology
Asset-specific
$— $— $85 $85 $— $— $45 $45 
Portfolio-based
96 — 1,735 1,831 77 — 2,248 2,325 
Total allowance for lending-related commitments(e)
$96 $— $1,820 $1,916 $77 $— $2,293 $2,370 
Lending-related commitments by impairment methodology
Asset-specific
$— $— $390 $390 $— $— $401 $401 
Portfolio-based(f)
28,994 — 511,263 540,257 21,569 — 466,600 488,169 
Total lending-related commitments
$28,994 $— $511,653 $540,647 $21,569 $— $467,001 $488,570 
(a)Represents the impact to the allowance for loan losses upon the adoption of the Financial Instruments - Credit Losses: Troubled Debt Restructurings accounting guidance. Refer to Note 1 of JPMorgan Chase's 2023 Form 10-K for further information.
(b)At March 31, 2024 and 2023, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for credit losses of $274 million and $20 million, respectively, associated with certain accounts receivable in CIB. At March 31, 2023, the Firm also had an allowance for credit losses of $241 million associated with Other assets in Corporate.
(c)As of March 31, 2024, included the allowance for credit losses associated with First Republic.
(d)Includes collateral-dependent loans, including those for which foreclosure is deemed probable, and nonaccrual risk-rated loans.
(e)The allowance for lending-related commitments is reported in accounts payable and other liabilities on the Consolidated balance sheets.
(f)At March 31, 2024 and 2023, lending-related commitments excluded $17.7 billion and $16.0 billion, respectively, for the consumer, excluding credit card portfolio segment; $943.9 billion and $861.2 billion, respectively, for the credit card portfolio segment; and $20.9 billion and $17.5 billion, respectively, for the wholesale portfolio segment, which were not subject to the allowance for lending-related commitments.
Discussion of changes in the allowance
The allowance for credit losses as of March 31, 2024 was relatively flat when compared to December 31, 2023, reflecting:
•a net reduction of $142 million in wholesale, which included a net addition associated with net downgrade activity, largely in Real Estate, primarily in CB, which was more than offset by the net impact of changes in the loan and lending-related commitment portfolios, as well as updates to certain macroeconomic variables, and
•a net addition of $44 million in consumer, consisting of:
–$153 million in Card Services, primarily due to seasoning of newer vintages, largely offset by reduced borrower uncertainty,
predominantly offset by:
–a $125 million net reduction in Home Lending, primarily driven by improvements in the outlook for home prices.
The Firm has maintained the additional weight placed on the adverse scenarios in the first quarter of 2023 to reflect downside risks as a result of persistent inflation and tightening financial conditions.
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 table below, resulting in a weighted average U.S. unemployment rate peaking at 5.4% in the first quarter of 2025, and a weighted average U.S. real GDP level that is 1.7% lower than the central case at the end of the second quarter of 2025.
The following table presents the Firm’s central case assumptions for the periods presented:
Central case assumptions
at March 31, 2024
2Q244Q242Q25
U.S. unemployment rate(a)
3.9 %4.2 %4.1 %
YoY growth in U.S. real GDP(b)
2.6 %0.9 %1.2 %
Central case assumptions
at December 31, 2023
2Q244Q242Q25
U.S. unemployment rate(a)
4.1 %4.4 %4.1 %
YoY growth in U.S. real GDP(b)
1.8 %0.7 %1.0 %
(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 JPMorgan Chase’s 2023 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 Consumer Credit Portfolio on pages 54-57, Wholesale Credit Portfolio on pages 58-66 and Note 11 for additional information on the consumer and wholesale credit portfolios.
Refer to Critical Accounting Estimates Used by the Firm on pages 78-80 for further information on the allowance for credit losses and related management judgments.