| ALLOWANCE FOR CREDIT LOSSES |
Allowance for credit losses For detailed discussion of the allowance for credit losses and the related accounting policies, see Note 15 on pages 276–279 JPMorgan Chase’s 2012 Annual Report. Allowance for credit losses and loans and lending-related commitments by impairment methodology The table below summarizes information about the allowance for loan losses, loans by impairment methodology, the allowance for lending-related commitments and lending-related commitments by impairment methodology. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2013 | | 2012 | Three months ended March 31,
(in millions) | Consumer, excluding credit card | | Credit card | | Wholesale | Total | | Consumer, excluding credit card | | Credit card | | Wholesale | Total | Allowance for loan losses | | | | | | | | | | | | | | Beginning balance at January 1, | $ | 12,292 |
| | $ | 5,501 |
| | $ | 4,143 |
| $ | 21,936 |
| | $ | 16,294 |
| | $ | 6,999 |
| | $ | 4,316 |
| $ | 27,609 |
| Gross charge-offs | 720 |
| | 1,248 |
| | 66 |
| 2,034 |
| | 1,134 |
| | 1,627 |
| | 92 |
| 2,853 |
| Gross recoveries | (112 | ) | | (166 | ) | | (31 | ) | (309 | ) | | (138 | ) | | (241 | ) | | (87 | ) | (466 | ) | Net charge-offs/(recoveries) | 608 |
| | 1,082 |
| | 35 |
| 1,725 |
| | 996 |
| | 1,386 |
| | 5 |
| 2,387 |
| Provision for loan losses | (37 | ) | | 582 |
| | 24 |
| 569 |
| | 2 |
| | 636 |
| | 8 |
| 646 |
| Other | (2 | ) | | (3 | ) | | 5 |
| — |
| | (3 | ) | | 2 |
| | 4 |
| 3 |
| Ending balance at March 31, | $ | 11,645 |
| | $ | 4,998 |
| | $ | 4,137 |
| $ | 20,780 |
| | $ | 15,297 |
| | $ | 6,251 |
| | $ | 4,323 |
| $ | 25,871 |
| | | | | | | | | | | | | | | Allowance for loan losses by impairment methodology | | | | | | | | | | | | | | Asset-specific(a) | $ | 771 |
| | $ | 1,434 |
| (b) | $ | 228 |
| $ | 2,433 |
| | $ | 760 |
| | $ | 2,402 |
| (b) | $ | 448 |
| $ | 3,610 |
| Formula-based | 5,163 |
| | 3,564 |
| | 3,909 |
| 12,636 |
| | 8,826 |
| | 3,849 |
| | 3,875 |
| 16,550 |
| PCI | 5,711 |
| | — |
| | — |
| 5,711 |
| | 5,711 |
| | — |
| | — |
| 5,711 |
| Total allowance for loan losses | $ | 11,645 |
| | $ | 4,998 |
| | $ | 4,137 |
| $ | 20,780 |
| | $ | 15,297 |
| | $ | 6,251 |
| | $ | 4,323 |
| $ | 25,871 |
| | | | | | | | | | | | | | | Loans by impairment methodology | | | | | | | | | | | | | | Asset-specific | $ | 14,189 |
| | $ | 4,287 |
| | $ | 1,302 |
| $ | 19,778 |
| | $ | 10,059 |
| | $ | 6,524 |
| | $ | 2,058 |
| $ | 18,641 |
| Formula-based | 217,456 |
| | 117,578 |
| | 309,271 |
| 644,305 |
| | 230,650 |
| | 117,951 |
| | 281,573 |
| 630,174 |
| PCI | 58,437 |
| | — |
| | 9 |
| 58,446 |
| | 64,061 |
| | — |
| | 22 |
| 64,083 |
| Total retained loans | $ | 290,082 |
| | $ | 121,865 |
| | $ | 310,582 |
| $ | 722,529 |
| | $ | 304,770 |
| | $ | 124,475 |
| | $ | 283,653 |
| $ | 712,898 |
| | | | | | | | | | | | | | | Impaired collateral-dependent loans | | | | | | | | | | | | | | Net charge-offs | $ | 78 |
| | $ | — |
| | $ | 6 |
| $ | 84 |
| | $ | 29 |
| | $ | — |
| | $ | 24 |
| $ | 53 |
| Loans measured at fair value of collateral less cost to sell | 3,153 |
| | — |
| | 432 |
| 3,585 |
| | 849 |
| | — |
| | 790 |
| 1,639 |
| | | | | | | | | | | | | | | Allowance for lending-related commitments | | | | | | | | | | | | | | Beginning balance at January 1, | $ | 7 |
| | $ | — |
| | $ | 661 |
| $ | 668 |
| | $ | 7 |
| | $ | — |
| | $ | 666 |
| $ | 673 |
| Provision for lending-related commitments | — |
| | — |
| | 48 |
| 48 |
| | (1 | ) | | — |
| | 81 |
| 80 |
| Other | — |
| | — |
| | — |
| — |
| | 1 |
| | — |
| | (4 | ) | (3 | ) | Ending balance at March 31, | $ | 7 |
| | $ | — |
| | $ | 709 |
| $ | 716 |
| | $ | 7 |
| | $ | — |
| | $ | 743 |
| $ | 750 |
| | | | | | | | | | | | | | | Allowance for lending-related commitments by impairment methodology | | | | | | | | | | | | | | Asset-specific | $ | — |
| | $ | — |
| | $ | 82 |
| $ | 82 |
| | $ | — |
| | $ | — |
| | $ | 187 |
| $ | 187 |
| Formula-based | 7 |
| | — |
| | 627 |
| 634 |
| | 7 |
| | — |
| | 556 |
| 563 |
| Total allowance for lending-related commitments | $ | 7 |
| | $ | — |
| | $ | 709 |
| $ | 716 |
| | $ | 7 |
| | $ | — |
| | $ | 743 |
| $ | 750 |
| | | | | | | | | | | | | | | Lending-related commitments by impairment methodology | | | | | | | | | | | | | | Asset-specific | $ | — |
| | $ | — |
| | $ | 244 |
| $ | 244 |
| | $ | — |
| | $ | — |
| | $ | 756 |
| $ | 756 |
| Formula-based | 60,874 |
| | 537,455 |
| | 435,037 |
| 1,033,366 |
| | 63,121 |
| | 533,318 |
| | 400,308 |
| 996,747 |
| Total lending-related commitments | $ | 60,874 |
| | $ | 537,455 |
| | $ | 435,281 |
| $ | 1,033,610 |
| | $ | 63,121 |
| | $ | 533,318 |
| | $ | 401,064 |
| $ | 997,503 |
|
| | (a) | Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a TDR. |
| | (b) | The asset-specific credit card allowance for loan losses is related to loans that have been modified in a TDR; such allowance is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates. |
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