Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2022

Allowance for credit losses on financing receivables

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 2021 Form 10-K and Note 9 of this Form 10-Q for further information on the allowance for credit losses on investment securities.


	2022								2021
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,	$	1,765	$	10,250	$	4,371	$	16,386		$	3,636	$	17,800	$	6,892	$	28,328
Gross charge-offs	204		720		52		976			166		1,214		88		1,468
Gross recoveries collected	(158)		(214)		(22)		(394)			(145)		(231)		(35)		(411)
Net charge-offs/(recoveries)	46		506		30		582			21		983		53		1,057
Provision for loan losses	175		506		687		1,368			(932)		(2,517)		(830)		(4,279)
Other	—		—		20		20			(1)		—		10		9
Ending balance at March 31,	$	1,894	$	10,250	$	5,048	$	17,192		$	2,682	$	14,300	$	6,019	$	23,001

Allowance for lending-related commitments
Beginning balance at January 1,	$	113	$	—	$	2,148	$	2,261		$	187	$	—	$	2,222	$	2,409
Provision for lending-related commitments	(2)		—		98		96			(52)		—		159		107
Other	—		—		1		1			—		—		—		—
Ending balance at March 31,	$	111	$	—	$	2,247	$	2,358		$	135	$	—	$	2,381	$	2,516
Total allowance for investment securities	NA		NA		NA		41			NA		NA		NA		94
Total allowance for credit losses	$	2,005	$	10,250	$	7,295	$	19,591		$	2,817	$	14,300	$	8,400	$	25,611

Allowance for loan losses by impairment methodology
Asset-specific(a)	$	(644)	$	262	$	485	$	103		$	(348)	$	522	$	529	$	703
Portfolio-based	2,538		9,988		4,563		17,089			3,030		13,778		5,490		22,298
Total allowance for loan losses	$	1,894	$	10,250	$	5,048	$	17,192		$	2,682	$	14,300	$	6,019	$	23,001

Loans by impairment methodology
Asset-specific(a)	$	13,186	$	901	$	2,823	$	16,910		$	16,008	$	1,291	$	3,394	$	20,693
Portfolio-based	282,975		151,382		567,130		1,001,487			286,384		130,481		511,084		927,949
Total retained loans	$	296,161	$	152,283	$	569,953	$	1,018,397		$	302,392	$	131,772	$	514,478	$	948,642

Collateral-dependent loans
Net charge-offs	$	(5)	$	—	$	7	$	2		$	20	$	—	$	2	$	22
Loans measured at fair value of collateral less cost to sell	4,144		—		665		4,809			4,790		—		354		5,144

Allowance for lending-related commitments by impairment methodology
Asset-specific	$	—	$	—	$	139	$	139		$	—	$	—	$	144	$	144
Portfolio-based	111		—		2,108		2,219			135		—		2,237		2,372
Total allowance for lending-related commitments(b)	$	111	$	—	$	2,247	$	2,358		$	135	$	—	$	2,381	$	2,516

Lending-related commitments by impairment methodology
Asset-specific	$	—	$	—	$	767	$	767		$	—	$	—	$	800	$	800
Portfolio-based(c)	31,847		—		463,570		495,417			34,468		—		440,830		475,298
Total lending-related commitments	$	31,847	$	—	$	464,337	$	496,184		$	34,468	$	—	$	441,630	$	476,098

(a)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 allowance for credit card 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.

(b)The allowance for lending-related commitments is reported in accounts payable and other liabilities on the Consolidated balance sheets.

(c)At March 31, 2022 and 2021, lending-related commitments excluded $15.3 billion and $21.8 billion, respectively, for the consumer, excluding credit card portfolio segment; $757.3 billion and $674.4 billion, respectively, for the credit card portfolio segment; and $32.9 billion and $39.6 billion, respectively, for the wholesale portfolio segment, which were not subject to the allowance for lending-related commitments.

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 March 31, 2022
	2Q22		4Q22		2Q23
U.S. unemployment rate(a)	3.6	%	3.3	%	3.3	%
YoY growth in U.S. real GDP(b)	3.7	%	2.9	%	2.6	%

	Assumptions at December 31, 2021
	2Q22		4Q22		2Q23
U.S. unemployment rate(a)	4.2	%	4.0	%	3.9	%
YoY growth in U.S. real GDP(b)	3.1	%	2.8	%	2.1	%

(a)Reflects quarterly average of forecasted U.S. unemployment rate.

(b)As of March 31, 2022, the year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percent change in U.S. real GDP levels from the prior year.