JPM · 10-Q · 2026Q2 · Full report
Allowance for Credit Losses
JPMORGAN CHASE & CO · 2026-08-06 · Importance 31 · Surprise 32 · In source text
The allowance for credit losses reached $31.5 billion at June 30, 2026, a $303 million increase from December 31, 2025. Wholesale allowances increased by $473 million, reflecting loan portfolio growth and changes in credit quality, partly offset by lower allowances for certain accounts receivable and updated loss assumptions on Markets loans. Consumer allowances declined by $128 million, primarily because of improved home prices in the first quarter. The allowance continued to place additional weight on adverse scenarios, including a projected weighted-average U.S. unemployment peak of 5.6% in the second quarter of 2027 and real GDP 2.1% below the central case by the fourth quarter of 2027.
Key facts
- Under the relative adverse scenario, modeled credit losses would increase by approximately $4.8 billion for credit card loans. source
- Under the relative adverse scenario, modeled credit losses would increase by approximately $5.0 billion for wholesale loans and lending-related commitments. source
- As of June 30, 2026, the adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital was $(16,475) million (compared with $(14,881) million at December 31, 2025). source
- The allowance for credit losses as of June 30, 2026 was $31.5 billion, reflecting a net addition of $303 million from December 31, 2025. source
- Under a relative adverse macroeconomic scenario compared to the central scenario, modeled credit losses would increase by approximately $1.0 billion for residential real estate loans and lending-related commitments. source
- Total allowance for credit losses (table) was $31,366 million as of June 30, 2026. source
- Allowance for loan losses, ending balance at June 30, 2026: Consumer, excluding credit card $1,796 million; Credit card $15,561 million; Wholesale $8,795 million; Total $26,152 million. source
- The net addition to the allowance for credit losses included $473 million in wholesale and a net reduction of $128 million in consumer. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | contingent | -0.3% | Under a relative adverse macroeconomic scenario compared to the central scenario, modeled credit losses would increase by approximately… |
| assets | negative | realized | -0.0% | As of June 30, 2026, the adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital was $(16,475) million (compared… |
| assets | negative | contingent | -0.0% | Under the relative adverse scenario, modeled credit losses would increase by approximately $4.8 billion for credit card loans. |
| assets | negative | contingent | -0.0% | Under the relative adverse scenario, modeled credit losses would increase by approximately $5.0 billion for wholesale loans and… |
| assets | negative | realized | -0.0% | The allowance for credit losses as of June 30, 2026 was $31.5 billion, reflecting a net addition of $303 million from December 31, 2025. |