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Allowance for Credit Losses
 6 Months Ended
Jun. 30, 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
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,$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-offs661 3,998 448 5,107 501 2,432 294 3,227 
Gross recoveries collected(343)(482)(95)(920)(247)(386)(46)(679)
Net charge-offs/(recoveries)318 3,516 353 4,187 254 2,046 248 2,548 
Provision for loan losses204 4,266 288 4,758 751 2,546 2,067 5,364 
Other
1 — (1)— — — 25 25 
Ending balance at June 30,
$1,743 $13,200 $8,048 $22,991 $2,048 $11,600 $8,332 $21,980 
Allowance for lending-related commitments
Beginning balance at January 1,
$75 $— $1,899 $1,974 $76 $— $2,306 $2,382 
Provision for lending-related commitments17 — 77 94 52 — (253)(201)
Other
— — — — 1 — 4 5 
Ending balance at June 30,
$92 $— $1,976 $2,068 $129 $— $2,057 $2,186 
Total allowance for investment securitiesNANANA177 NANANA104 
Total allowance for credit losses(b)
$1,835 $13,200 $10,024 $25,236 $2,177 $11,600 $10,389 $24,270 
Allowance for loan losses by impairment methodology
Asset-specific(c)
$(856)$— $562 $(294)$(971)$— $478 $(493)
Portfolio-based2,599 13,200 7,486 23,285 3,019 11,600 7,854 22,473 
Total allowance for loan losses$1,743 $13,200 $8,048 $22,991 $2,048 $11,600 $8,332 $21,980 
Loans by impairment methodology
Asset-specific(c)
$3,034 $— $3,283 $6,317 $3,439 $— $2,587 $6,026 
Portfolio-based379,761 216,100 670,869 1,266,730 392,756 191,348 665,558 1,249,662 
Total retained loans$382,795 $216,100 $674,152 $1,273,047 $396,195 $191,348 $668,145 $1,255,688 
Collateral-dependent loans
Net charge-offs$3 $— $134 $137 $5 $— $77 $82 
Loans measured at fair value of collateral less cost to sell
2,978 — 1,341 4,319 3,388 — 762 4,150 
Allowance for lending-related commitments by impairment methodology
Asset-specific
$— $— $107 $107 $— $— $65 $65 
Portfolio-based
92 — 1,869 1,961 129 — 1,992 2,121 
Total allowance for lending-related commitments(d)
$92 $— $1,976 $2,068 $129 $— $2,057 $2,186 
Lending-related commitments by impairment methodology
Asset-specific
$— $— $541 $541 $— $— $332 $332 
Portfolio-based(e)
27,375 — 511,857 539,232 32,428 — 521,408 553,836 
Total lending-related commitments
$27,375 $— $512,398 $539,773 $32,428 $— $521,740 $554,168 
(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 June 30, 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 $278 million and $18 million, respectively, associated with certain accounts receivable in CIB.
(c)Includes collateral-dependent loans, including those for which foreclosure is deemed probable, and nonaccrual risk-rated loans.
(d)The allowance for lending-related commitments is reported in accounts payable and other liabilities on the Consolidated balance sheets.
(e)At June 30, 2024 and 2023, lending-related commitments excluded $19.8 billion and $18.4 billion, respectively, for the consumer, excluding credit card portfolio segment; $964.7 billion and $881.5 billion, respectively, for the credit card portfolio segment; and $32.6 billion and $19.3 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 June 30, 2024 was $25.5 billion, reflecting a net addition of $749 million from December 31, 2023.
The net addition to the allowance for credit losses included:
•$653 million in consumer, reflecting a $753 million net addition in Card Services, predominantly driven by the seasoning of newer vintages, loan growth, and updates to certain macroeconomic variables, and a $125 million net reduction in Home Lending, and
•$47 million in wholesale, driven by
–a net addition of $707 million, reflecting net downgrade activity, primarily in Real Estate, and included approximately $200 million associated with incorporating the First Republic portfolio into the Firm’s modeled credit loss estimates,
predominantly offset by
–a net reduction of $660 million, primarily due to the impact of changes in the loan and lending-related commitment portfolios and updates to certain macroeconomic variables.
The Firm has maintained the additional weight placed on the adverse scenarios in the first quarter of 2023 to reflect ongoing uncertainties and downside risks related to the geopolitical and macroeconomic environment.
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 5.3% in the second quarter of 2025, and a weighted average U.S. real GDP level that is 2.1% lower than the central case at the end of the fourth quarter of 2025.
The following table presents the Firm’s central case assumptions for the periods presented:
Central case assumptions
at June 30, 2024
4Q242Q254Q25
U.S. unemployment rate(a)
4.1 %4.1 %4.0 %
YoY growth in U.S. real GDP(b)
1.5 %1.6 %1.9 %
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 Note 11 for additional information on the consumer and wholesale credit portfolios.
Refer to Critical Accounting Estimates Used by the Firm on pages 86-88 for further information on the allowance for credit losses and related management judgments.