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Allowance for Credit Losses
 9 Months Ended
Sep. 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
Nine months ended September 30,
(in millions)		Consumer, excluding
credit card		Credit cardWholesaleTotalConsumer, excluding credit cardCredit cardWholesaleTotal
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-offs971 6,044 659 7,674 809 3,852 435 5,096 
Gross recoveries collected(490)(762)(148)(1,400)(388)(579)(84)(1,051)
Net charge-offs/(recoveries)481 5,282 511 6,274 421 3,273 351 4,045 
Provision for loan losses360 6,932 506 7,798 723 4,073 2,047 6,843 
Other
— — 5 5 1 — 8 9 
Ending balance at September 30,$1,735 $14,100 $8,114 $23,949 $1,854 $11,900 $8,192 $21,946 
Allowance for lending-related commitments
Beginning balance at January 1,
$75 $— $1,899 $1,974 $76 $— $2,306 $2,382 
Provision for lending-related commitments6 — 162 168 5 — (313)(308)
Other
— — — — — — 1 1 
Ending balance at September 30,$81 $— $2,061 $2,142 $81 $— $1,994 $2,075 
Total allowance for investment securitiesNANANA175 NANANA117 
Total allowance for credit losses(b)
$1,816 $14,100 $10,175 $26,266 $1,935 $11,900 $10,186 $24,138 
Allowance for loan losses by impairment methodology
Asset-specific(c)
$(756)$— $499 $(257)$(942)$— $732 $(210)
Portfolio-based2,491 14,100 7,615 24,206 2,796 11,900 7,460 22,156 
Total allowance for loan losses$1,735 $14,100 $8,114 $23,949 $1,854 $11,900 $8,192 $21,946 
Loans by impairment methodology
Asset-specific(c)
$2,784 $— $3,510 $6,294 $3,321 $— $2,402 $5,723 
Portfolio-based375,154 219,542 684,380 1,279,076 393,733 196,935 669,550 1,260,218 
Total retained loans$377,938 $219,542 $687,890 $1,285,370 $397,054 $196,935 $671,952 $1,265,941 
Collateral-dependent loans
Net charge-offs$1 $— $150 $151 $4 $— $127 $131 
Loans measured at fair value of collateral less cost to sell
2,805 — 1,524 4,329 3,384 — 1,074 4,458 
Allowance for lending-related commitments by impairment methodology
Asset-specific
$— $— $93 $93 $— $— $61 $61 
Portfolio-based
81 — 1,968 2,049 81 — 1,933 2,014 
Total allowance for lending-related commitments(d)
$81 $— $2,061 $2,142 $81 $— $1,994 $2,075 
Lending-related commitments by impairment methodology
Asset-specific
$— $— $619 $619 $— $— $387 $387 
Portfolio-based(e)
26,764 — 514,313 541,077 30,245 — 514,937 545,182 
Total lending-related commitments
$26,764 $— $514,932 $541,696 $30,245 $— $515,324 $545,569 
(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 September 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 $277 million and $17 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 September 30, 2024 and 2023, lending-related commitments excluded $18.6 billion and $18.1 billion, respectively, for the consumer, excluding credit card portfolio segment; $989.6 billion and $898.9 billion, respectively, for the credit card portfolio segment; and $26.6 billion and $16.2 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 September 30, 2024 was $26.5 billion, reflecting a net addition of $1.8 billion from December 31, 2023.
The net addition to the allowance for credit losses included:
•$1.5 billion in consumer, reflecting:
–a $1.7 billion net addition in Card Services, due to loan growth, reflecting higher revolving balances, including the seasoning of newer vintages, and changes in certain macroeconomic variables,
partially offset by
–a $125 million net reduction in Home Lending in the first quarter of 2024, and
•$196 million in wholesale, reflecting:
–net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm’s modeled credit loss estimates in the second quarter of 2024,
partially offset by
–changes in certain macroeconomic variables and the impact of changes in the loan and lending-related commitment portfolios.
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 5.6% in the third quarter of 2025, and a weighted average U.S. real GDP level that is 1.9% 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 September 30, 2024
4Q242Q254Q25
U.S. unemployment rate(a)
4.5 %4.6 %4.4 %
YoY growth in U.S. real GDP(b)
1.6 %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 84-86 for further information on the allowance for credit losses and related management judgments.