•Other Collateralized. Other collateralized loans includes loans that are backed by specific collateral (other than securities and real estate). Such loans are extended to clients who warehouse assets that are directly or indirectly secured by corporate loans, consumer loans and other assets. Other collateralized loans also includes loans to investment funds (managed by third parties) that are collateralized by capital commitments of the funds' investors or assets held by the fund, as well as other secured loans extended to the firm's wealth management clients.

•Installment. Installment loans are unsecured loans originated by the firm (including point-of-sale loans that the firm began to originate through the GreenSky platform in the third quarter of 2022).

•Credit Cards. Credit card loans are loans made pursuant to revolving lines of credit issued to consumers by the firm.

•Other. Other loans includes unsecured loans extended to wealth management clients and unsecured consumer and credit card loans purchased by the firm.

See Note 4 for an overview of the firm’s fair value measurement policies, valuation techniques and significant inputs used to determine the fair value of loans, and Note 5 for information about loans within the fair value hierarchy.

Credit Quality

Risk Assessment. The firm’s risk assessment process includes evaluating the credit quality of its loans by the firm’s independent risk oversight and control function. For corporate loans and a majority of securities-based, real estate, other collateralized and other loans, the firm performs credit analyses which incorporate initial and ongoing evaluations of the capacity and willingness of a borrower to meet its financial obligations. These credit evaluations are performed on an annual basis or more frequently if deemed necessary as a result of events or changes in circumstances. The firm determines an internal credit rating for the borrower by considering the results of the credit evaluations and assumptions with respect to the nature of and outlook for the borrower’s industry and the economic environment. The internal credit rating does not take into consideration collateral received or other credit support arrangements. For consumer loans and for loans that are not assigned an internal credit rating, the firm reviews certain key metrics, including, but not limited to, the Fair Isaac Corporation (FICO) credit scores, delinquency status, collateral value and other risk factors.

The table below presents gross loans by an internally determined public rating agency equivalent or other credit metrics and the concentration of secured and unsecured loans.


$ in millions	Investment-Grade			Non-Investment- Grade			Other Metrics/Unrated			Total
As of December 2022
Accounting Method
Amortized cost	$	63,971		$	79,648		$	28,961		$	172,580
Fair value	1,735			3,349			2,571			7,655
Held for sale	466			4,082			46			4,594
Total	$	66,172		$	87,079		$	31,578		$	184,829
Loan Type
Corporate	$	10,200		$	29,935		$	–		$	40,135
Real estate:
Commercial	5,208			23,536			135			28,879
Residential	3,710			13,954			5,371			23,035
Securities-based	12,901			764			3,006			16,671
Other collateralized	33,093			18,291			318			51,702
Consumer:
Installment	–			–			6,326			6,326
Credit cards	–			–			15,820			15,820
Other	1,060			599			602			2,261
Total	$	66,172		$	87,079		$	31,578		$	184,829

Secured	85		%	93		%	27		%	79		%
Unsecured	15		%	7		%	73		%	21		%
Total	100		%	100		%	100		%	100		%
As of December 2021
Accounting Method
Amortized cost	$	50,923		$	75,179		$	17,405		$	143,507
Fair value	2,301			4,634			3,834			10,769
Held for sale	1,650			4,747			1,462			7,859
Total	$	54,874		$	84,560		$	22,701		$	162,135
Loan Type
Corporate	$	8,345		$	29,183		$	115		$	37,643
Real estate:
Commercial	6,283			22,344			373			29,000
Residential	3,194			16,071			5,409			24,674
Securities-based	13,801			447			2,404			16,652
Other collateralized	22,290			15,601			372			38,263
Consumer:
Installment	–			–			3,672			3,672
Credit cards	–			–			8,212			8,212
Other	961			914			2,144			4,019
Total	$	54,874		$	84,560		$	22,701		$	162,135

Secured	85		%	92		%	36		%	82		%
Unsecured	15		%	8		%	64		%	18		%
Total	100		%	100		%	100		%	100		%

In the table above:

•Substantially all residential real estate, securities-based, other collateralized and other loans included in the other metrics/unrated category consists of loans where the firm uses other key metrics to assess the borrower’s credit quality, such as loan-to-value ratio, delinquency status, collateral value, expected cash flows, FICO credit score (which measures a borrower’s creditworthiness by considering factors such as payment and credit history) and other risk factors.

•For installment and credit card loans included in the other metrics/unrated category, the evaluation of credit quality incorporates the borrower’s FICO credit score. FICO credit scores are periodically refreshed by the firm to assess the updated creditworthiness of the borrower. See “Vintage” below for information about installment and credit card loans by FICO credit scores.

The firm also assigns a regulatory risk rating to its loans based on the definitions provided by the U.S. federal bank regulatory agencies. Total loans included 93% of loans as of December 2022 and 92% of loans as of December 2021 that were rated pass/non-criticized.

Vintage. The tables below present gross loans accounted for at amortized cost (excluding installment and credit card loans) by an internally determined public rating agency equivalent or other credit metrics and origination year for term loans.


	As of December 2022
$ in millions	Investment- Grade			Non-Investment- Grade			Other Metrics/ Unrated			Total
2022	$	2,607		$	4,042		$	2		$	6,651
2021	1,669			4,273			–			5,942
2020	684			2,595			–			3,279
2019	209			2,779			–			2,988
2018	759			1,911			–			2,670
2017 or earlier	508			2,329			–			2,837
Revolving	3,709			8,746			–			12,455
Corporate	10,145			26,675			2			36,822
2022	734			3,971			2			4,707
2021	744			3,487			–			4,231
2020	407			1,740			–			2,147
2019	335			1,412			–			1,747
2018	212			469			–			681
2017 or earlier	1,238			797			11			2,046
Revolving	1,281			9,382			–			10,663
Commercial real estate	4,951			21,258			13			26,222
2022	941			1,385			1,307			3,633
2021	932			1,219			1,357			3,508
2020	–			14			89			103
2019	7			–			99			106
2018	10			50			138			198
2017 or earlier	31			10			142			183
Revolving	773			10,019			–			10,792
Residential real estate	2,694			12,697			3,132			18,523
2022	5			–			–			5
2018	1			–			–			1
2017 or earlier	–			291			–			291
Revolving	12,895			473			3,006			16,374
Securities-based	12,901			764			3,006			16,671
2022	4,095			1,212			113			5,420
2021	1,860			2,577			146			4,583
2020	777			1,795			36			2,608
2019	235			367			12			614
2018	504			149			6			659
2017 or earlier	294			301			–			595
Revolving	24,504			11,488			2			35,994
Other collateralized	32,269			17,889			315			50,473
2022	44			105			–			149
2021	17			162			–			179
2020	–			29			262			291
2019	–			10			–			10
2017 or earlier	–			–			5			5
Revolving	950			59			80			1,089
Other	1,011			365			347			1,723
Total	$	63,971		$	79,648		$	6,815		$	150,434
Percentage of total	42		%	53		%	5		%	100		%


	As of December 2021
$ in millions	Investment- Grade			Non-Investment- Grade			Other Metrics/ Unrated			Total
2021	$	2,932		$	6,843		$	–		$	9,775
2020	675			3,051			7			3,733
2019	314			3,630			–			3,944
2018	1,310			2,751			–			4,061
2017	431			1,737			–			2,168
2016 or earlier	273			1,648			–			1,921
Revolving	2,180			6,806			75			9,061
Corporate	8,115			26,466			82			34,663
2021	799			4,139			94			5,032
2020	532			2,081			–			2,613
2019	444			1,548			–			1,992
2018	478			854			–			1,332
2017	760			625			–			1,385
2016 or earlier	692			824			7			1,523
Revolving	1,883			8,507			–			10,390
Commercial real estate	5,588			18,578			101			24,267
2021	864			2,744			1,517			5,125
2020	271			564			103			938
2019	9			–			173			182
2018	–			96			165			261
2017	25			73			119			217
2016 or earlier	–			1			56			57
Revolving	690			10,919			–			11,609
Residential real estate	1,859			14,397			2,133			18,389
2018	–			1			–			1
2017	–			22			–			22
2016 or earlier	264			–			–			264
Revolving	13,537			424			2,404			16,365
Securities-based	13,801			447			2,404			16,652
2021	1,876			4,316			304			6,496
2020	1,378			1,598			48			3,024
2019	243			464			19			726
2018	595			180			–			775
2017	303			125			–			428
2016 or earlier	15			47			–			62
Revolving	16,257			8,148			–			24,405
Other collateralized	20,667			14,878			371			35,916
2021	68			290			10			368
2020	–			60			330			390
2019	30			20			–			50
2017	–			–			8			8
Revolving	795			43			82			920
Other	893			413			430			1,736
Total	$	50,923		$	75,179		$	5,521		$	131,623
Percentage of total	39		%	57		%	4		%	100		%

In the tables above, revolving loans which converted to term loans were $725 million as of December 2022, and primarily included other collateralized loans. Such loans were not material as of December 2021.

The table below presents gross installment loans by refreshed FICO credit scores and origination year and gross credit card loans by refreshed FICO credit scores.


$ in millions	Greater than or equal to 660			Less than 660			Total
As of December 2022
2022	$	4,349		$	242		$	4,591
2021	1,080			109			1,189
2020	251			23			274
2019	160			23			183
2018	70			13			83
2017 or earlier	5			1			6
Installment	5,915			411			6,326
Credit cards	10,762			5,058			15,820
Total	$	16,677		$	5,469		$	22,146

Percentage of total:
Installment	94		%	6		%	100		%
Credit cards	68		%	32		%	100		%
Total	75		%	25		%	100		%

As of December 2021
2021	$	2,017		$	42		$	2,059
2020	665			40			705
2019	508			61			569
2018	257			42			299
2017	32			7			39
2016	1			–			1
Installment	3,480			192			3,672
Credit cards	6,100			2,112			8,212
Total	$	9,580		$	2,304		$	11,884

Percentage of total:
Installment	95		%	5		%	100		%
Credit cards	74		%	26		%	100		%
Total	81		%	19		%	100		%

In the table above, credit card loans consist of revolving lines of credit.

Credit Concentrations. The table below presents the concentration of gross loans by region.


$ in millions	Carrying Value		Americas		EMEA		Asia		Total
As of December 2022
Corporate	$	40,135	57	%	34	%	9	%	100	%
Commercial real estate	28,879		79	%	16	%	5	%	100	%
Residential real estate	23,035		96	%	3	%	1	%	100	%
Securities-based	16,671		83	%	15	%	2	%	100	%
Other collateralized	51,702		86	%	12	%	2	%	100	%
Consumer:
Installment	6,326		100	%	–		–		100	%
Credit cards	15,820		100	%	–		–		100	%
Other	2,261		89	%	11	%	–		100	%
Total	$	184,829	81	%	15	%	4	%	100	%
As of December 2021
Corporate	$	37,643	52	%	38	%	10	%	100	%
Commercial real estate	29,000		82	%	13	%	5	%	100	%
Residential real estate	24,674		96	%	2	%	2	%	100	%
Securities-based	16,652		77	%	16	%	7	%	100	%
Other collateralized	38,263		74	%	23	%	3	%	100	%
Consumer:
Installment	3,672		100	%	–		–		100	%
Credit cards	8,212		100	%	–		–		100	%
Other	4,019		89	%	11	%	–		100	%
Total	$	162,135	76	%	19	%	5	%	100	%

In the table above:

•EMEA represents Europe, Middle East and Africa.

•The top five industry concentrations for corporate loans as of December 2022 were 26% for technology, media & telecommunications, 18% for diversified industrials, 11% for real estate, 10% for healthcare and 10% for consumer & retail.

•The top five industry concentrations for corporate loans as of December 2021 were 24% for technology, media & telecommunications, 17% for diversified industrials, 13% for natural resources & utilities, 11% for consumer & retail and 10% for healthcare.

Nonaccrual and Past Due Loans. Loans accounted for at amortized cost (other than credit card loans) are placed on nonaccrual status when it is probable that the firm will not collect all principal and interest due under the contractual terms, regardless of the delinquency status or if a loan is past due for 90 days or more, unless the loan is both well collateralized and in the process of collection. At that time, all accrued but uncollected interest is reversed against interest income and interest subsequently collected is recognized on a cash basis to the extent the loan balance is deemed collectible. Otherwise, all cash received is used to reduce the outstanding loan balance. A loan is considered past due when a principal or interest payment has not been made according to its contractual terms. Credit card loans are not placed on nonaccrual status and accrue interest until the loan is paid in full or is charged off.

In certain circumstances, the firm may modify the original terms of a loan agreement by granting a concession to a borrower experiencing financial difficulty, typically in the form of a modification of loan covenants, but may also include forbearance of interest or principal, payment extensions or interest rate reductions. These modifications, to the extent significant, are considered TDRs. Loan modifications that extend payment terms for a period of less than 90 days are generally considered insignificant and therefore not reported as TDRs.

The table below presents information about past due loans.


$ in millions	30-89 days		90 days or more		Total
As of December 2022
Corporate	$	–	$	92	$	92
Commercial real estate	47		362		409
Residential real estate	4		6		10
Securities-based	1		–		1
Other collateralized	10		5		15
Consumer:
Installment	46		17		63
Credit cards	291		265		556
Other	17		5		22
Total	$	416	$	752	$	1,168
Total divided by gross loans at amortized cost					0.7		%

As of December 2021
Corporate	$	5	$	90	$	95
Commercial real estate	7		158		165
Residential real estate	3		4		7
Securities-based	–		5		5
Consumer:
Installment	20		7		27
Credit cards	86		71		157
Other	15		3		18
Total	$	136	$	338	$	474
Total divided by gross loans at amortized cost					0.3		%

The table below presents information about nonaccrual loans.


	As of December


$ in millions	2022			2021
Corporate	$	1,432		$	1,421
Commercial real estate	1,079			856
Residential real estate	93			5
Securities-based	–			5
Other collateralized	65			139
Installment	41			43
Total	$	2,710		$	2,469
Total divided by gross loans at amortized cost	1.6		%	1.7		%

In the table above:

•Nonaccrual loans included $483 million as of December 2022 and $254 million as of December 2021 of loans that were 30 days or more past due.

•Loans that were 90 days or more past due and still accruing were not material as of both December 2022 and December 2021.

•Nonaccrual loans included $204 million of corporate loans as of December 2022 and $267 million of corporate and commercial real estate loans as of December 2021 that were modified in a TDR. The firm’s lending commitments related to these loans were not material as of both December 2022 and December 2021. Installment loans that were modified in a TDR were not material as of both December 2022 and December 2021.

•Allowance for loan losses as a percentage of total nonaccrual loans was 204.5% as of December 2022 and 144.7% as of December 2021.

Allowance for Credit Losses

The firm’s allowance for credit losses consists of the allowance for losses on loans and lending commitments accounted for at amortized cost. Loans and lending commitments accounted for at fair value or accounted for at the lower of cost or fair value are not subject to an allowance for credit losses.

To determine the allowance for credit losses, the firm classifies its loans and lending commitments accounted for at amortized cost into wholesale and consumer portfolios. These portfolios represent the level at which the firm has developed and documented its methodology to determine the allowance for credit losses. The allowance for credit losses is measured on a collective basis for loans that exhibit similar risk characteristics using a modeled approach and on an asset-specific basis for loans that do not share similar risk characteristics.

The allowance for credit losses takes into account the weighted average of a range of forecasts of future economic conditions over the expected life of the loan and lending commitments. The expected life of each loan or lending commitment is determined based on the contractual term adjusted for extension options or demand features, or is modeled in the case of revolving credit card loans. The forecasts include baseline, favorable and adverse economic scenarios over a three-year period. For loans with expected lives beyond three years, the model reverts to historical loss information based on a non-linear modeled approach. The forecasted economic scenarios consider a number of risk factors relevant to the wholesale and consumer portfolios described below. The firm applies judgment in weighing individual scenarios each quarter based on a variety of factors, including the firm’s internally derived economic outlook, market consensus, recent macroeconomic conditions and industry trends.

The allowance for credit losses also includes qualitative components which allow management to reflect the uncertain nature of economic forecasting, capture uncertainty regarding model inputs, and account for model imprecision and concentration risk.

Management’s estimate of credit losses entails judgment about the expected life of the loan and loan collectability at the reporting dates, and there are uncertainties inherent in those judgments. The allowance for credit losses is subject to a governance process that involves review and approval by senior management within the firm’s independent risk oversight and control functions. Personnel within the firm’s independent risk oversight and control functions are responsible for forecasting the economic variables that underlie the economic scenarios that are used in the modeling of expected credit losses. While management uses the best information available to determine this estimate, future adjustments to the allowance may be necessary based on, among other things, changes in the economic environment or variances between actual results and the original assumptions used.

The table below presents gross loans and lending commitments accounted for at amortized cost by portfolio.


	As of December
	2022				2021
$ in millions	Loans		Lending Commitments		Loans		Lending Commitments
Wholesale
Corporate	$	36,822	$	137,149	$	34,663	$	135,968
Commercial real estate	26,222		3,692		24,267		5,229
Residential real estate	18,523		3,089		18,389		3,949
Securities-based	16,671		508		16,652		454
Other collateralized	50,473		13,209		35,916		15,137
Other	1,723		944		1,736		442
Consumer
Installment	6,326		1,882		3,672		9
Credit cards	15,820		62,216		8,212		35,932
Total	$	172,580	$	222,689	$	143,507	$	197,120

In the table above:

•Wholesale loans included $2.67 billion as of December 2022 and $2.43 billion as of December 2021 of nonaccrual loans for which the allowance for credit losses was measured on an asset-specific basis. The allowance for credit losses on these loans was $535 million as of December 2022 and $543 million as of December 2021. These loans included $384 million as of December 2022 and $140 million as of December 2021 of loans which did not require a reserve as the loan was deemed to be recoverable.

•Credit card lending commitments included $62.22 billion as of December 2022 and $33.97 billion as of December 2021 related to credit card lines issued by the firm to consumers. These credit card lines are cancellable by the firm. The increase in credit card lending commitments from December 2021 to December 2022 reflected approximately $15.0 billion relating to the firm’s acquisition of the General Motors co-branded credit card portfolio. In addition, credit card lending commitments as of December 2021 included a commitment of approximately $2.0 billion to acquire the outstanding credit card loans related to the General Motors co-branded credit card portfolio. See Note 18 for further information about lending commitments.

•The increase in installment lending commitments from December 2021 to December 2022 primarily relates to commitments extended in connection with point-of-sale financing through GreenSky. See Note 18 for further information about lending commitments.

The following is a description of the methodology used to calculate the allowance for credit losses:

Wholesale. The allowance for credit losses for wholesale loans and lending commitments that exhibit similar risk characteristics is measured using a modeled approach. These models determine the probability of default and loss given default based on various risk factors, including internal credit ratings, industry default and loss data, expected life, macroeconomic indicators, the borrower’s capacity to meet its financial obligations, the borrower’s country of risk and industry, loan seniority and collateral type. For lending commitments, the methodology also considers the probability of drawdowns or funding. In addition, for loans backed by real estate, risk factors include the loan-to-value ratio, debt service ratio and home price index. The most significant inputs to the forecast model for wholesale loans and lending commitments include unemployment rates, GDP, credit spreads, commercial and industrial delinquency rates, short- and long-term interest rates, and oil prices.

The allowance for loan losses for wholesale loans that do not share similar risk characteristics, such as nonaccrual loans or loans in a TDR, is calculated using the present value of expected future cash flows discounted at the loan’s original effective rate, the observable market price of the loan or the fair value of the collateral.

Wholesale loans are charged off against the allowance for loan losses when deemed to be uncollectible.

Consumer. The allowance for credit losses for consumer loans that exhibit similar risk characteristics is calculated using a modeled approach which classifies consumer loans into pools based on borrower-related and exposure-related characteristics that differentiate a pool’s risk characteristics from other pools. The factors considered in determining a pool are generally consistent with the risk characteristics used for internal credit risk measurement and management and include key metrics, such as FICO credit scores, delinquency status, loan vintage and macroeconomic indicators. The most significant inputs to the forecast model for consumer loans include unemployment rates and delinquency rates. The expected life of revolving credit card loans is determined by modeling expected future draws and the timing and amount of repayments allocated to the funded balance. The firm also recognizes an allowance for credit losses on commitments to acquire loans and commitments extended in connection with point-of-sale financing. However, no allowance for credit losses is recognized on credit card lending commitments as they are cancellable by the firm.

The allowance for credit losses for consumer loans that do not share similar risk characteristics, such as loans in a TDR, is calculated using the present value of expected future cash flows discounted at the loan’s original effective rate.

Installment loans are charged off when they are 120 days past due. Credit card loans are charged off when they are 180 days past due.

Allowance for Credit Losses Rollforward

The table below presents information about the allowance for credit losses.


$ in millions	Wholesale			Consumer			Total






























Year Ended December 2022
Allowance for loan losses
Beginning balance	$	2,135		$	1,438		$	3,573
Net (charge-offs)/recoveries	(253)			(473)			(726)
Provision	699			2,016			2,715
Other	(19)			–			(19)
Ending balance	$	2,562		$	2,981		$	5,543

Allowance ratio	1.7		%	13.5		%	3.2		%
Net charge-off ratio	0.2		%	2.8		%	0.5		%
Allowance for losses on lending commitments
Beginning balance	$	589		$	187		$	776
Provision	124			(124)			–
Other	(2)			–			(2)
Ending balance	$	711		$	63		$	774

Year Ended December 2021
Allowance for loan losses
Beginning balance	$	2,584		$	1,290		$	3,874
Net (charge-offs)/recoveries	(130)			(203)			(333)
Provision	(231)			351			120
Other	(88)			–			(88)
Ending balance	$	2,135		$	1,438		$	3,573

Allowance ratio	1.6		%	12.1		%	2.5		%
Net charge-off ratio	0.1		%	2.3		%	0.3		%
Allowance for losses on lending commitments
Beginning balance	$	557		$	–		$	557
Provision	50			187			237
Other	(18)			–			(18)
Ending balance	$	589		$	187		$	776

In the table above:

•For the year ended December 2021, other primarily represented the reduction to the allowance related to loans and lending commitments transferred to held for sale.

•The allowance ratio is calculated by dividing the allowance for loan losses by gross loans accounted for at amortized cost.

•The net charge-off ratio is calculated by dividing net (charge-offs)/recoveries by average gross loans accounted for at amortized cost.

Forecast Model Inputs as of December 2022

When modeling expected credit losses, the firm employs a weighted, multi-scenario forecast, which includes baseline, adverse and favorable economic scenarios. As of December 2022, this multi-scenario forecast was weighted towards the baseline and adverse economic scenarios.

The table below presents the forecasted U.S. unemployment and U.S. GDP growth rates used in the baseline economic scenario of the forecast model.


As of December 2022
U.S. unemployment rate
Forecast for the quarter ended:
June 2023	4.2	%
December 2023	4.6	%
June 2024	4.6	%

Growth in U.S. GDP
Forecast for the year:
2023	0.4	%
2024	1.3	%
2025	1.7	%

The adverse economic scenario of the forecast model reflects a global recession in 2023 and a more aggressive tightening of monetary policy by central banks, resulting in an economic contraction and rising unemployment rates. In this scenario, the U.S. unemployment rate peaks at approximately 7.4% during the first quarter of 2024 and the maximum decline in the quarterly U.S. GDP relative to the fourth quarter of 2022 is approximately 2.7%, which occurs during the fourth quarter of 2023.

In the table above:

•U.S. unemployment rate represents the rate forecasted as of the respective quarter-end.

•Growth in U.S. GDP represents the year-over-year growth rate forecasted for the respective years.

•While the U.S. unemployment and U.S. GDP growth rates are significant inputs to the forecast model, the model contemplates a variety of other inputs across a range of scenarios to provide a forecast of future economic conditions. Given the complex nature of the forecasting process, no single economic variable can be viewed in isolation and independently of other inputs.

Allowance for Credit Losses Commentary

Year Ended December 2022. The allowance for credit losses increased by $1.97 billion during 2022, reflecting growth in the firm's consumer lending portfolios (principally in credit cards) and higher modeled expected losses due to broad macroeconomic and geopolitical concerns. In addition, the allowance for credit losses for wholesale loans was impacted by asset-specific provisions and ratings downgrades primarily related to borrowers in the technology, media & telecommunications, real estate, and consumer & retail industries.

Net (charge-offs)/recoveries for 2022 for wholesale loans were primarily related to corporate loans and net (charge-offs)/recoveries for consumer loans were primarily related to credit cards.

Year Ended December 2021. The allowance for credit losses decreased by $82 million during 2021, reflecting reserve reduction driven by improved broader economic environment, partially offset by growth in the firm’s lending portfolios, primarily in the consumer portfolio related to credit cards, including a provision for credit losses of approximately $185 million related to the acquisition of the General Motors co-branded credit card portfolio.

Net (charge-offs)/recoveries for 2021 for wholesale loans were primarily related to corporate loans and net (charge-offs)/recoveries for consumer loans were primarily related to credit cards.

Measurement of Credit Losses on Financial Instruments (ASC 326)

The firm adopted ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments" as of January 1, 2020. As a result of adopting this ASU, the firm's allowance for credit losses on financial assets and commitments that are accounted for at amortized cost reflects management's estimate of credit losses over the remaining life of such assets. The cumulative effect of adopting this ASU as of January 1, 2020, was a decrease to retained earnings of $638 million (net of tax).

Estimated Fair Value

The table below presents the estimated fair value of loans that are not accounted for at fair value and in what level of the fair value hierarchy they would have been classified if they had been included in the firm’s fair value hierarchy.


	Carrying Value		Estimated Fair Value
$ in millions			Level 2		Level 3		Total
As of December 2022
Amortized cost	$	167,037	$	85,921	$	83,121	$	169,042
Held for sale	$	4,594	$	2,592	$	2,014	$	4,606
As of December 2021
Amortized cost	$	139,934	$	87,676	$	54,127	$	141,803
Held for sale	$	7,859	$	5,970	$	1,917	$	7,887