JPM · 10-Q · 2026Q2 · Full report

Credit Costs and Allowance

JPMORGAN CHASE & CO · 2026-08-06 · Importance 30 · Surprise 40 · In source text

Firmwide provision for credit losses declined 18% year over year to $5.0 billion for the six months ended June 30, 2026, while second-quarter provision declined 12% to $2.5 billion. CCB first-half provision decreased 11% to $4.2 billion, but Card Services net charge-offs increased to $4.1 billion from $3.9 billion as loans grew, and the total CCB allowance for credit losses increased 15% to $19.7 billion. CIB first-half provision declined to $838 million from $1.4 billion, with net charge-offs of $327 million and a $511 million allowance addition. AWM reported a $72 million second-quarter recovery and total allowance for credit losses declined 7% year over year, while CCB nonaccrual loans declined 10% to $3.5 billion.

Key facts

• The Firm’s weighted average macroeconomic adverse scenarios include a weighted average U.S. unemployment rate peaking at 5.6% in the second quarter of 2027 and a weighted average U.S. real GDP level that is 2.1% lower than the central case at the end of the fourth quarter of 2027. source
• Central case assumptions at June 30, 2026 include U.S. unemployment rate of 4.2% in 4Q26, 4.1% in 2Q27 and 4.1% in 4Q27; YoY growth in U.S. real GDP of 1.7% in 4Q26, 1.9% in 2Q27 and 2.0% in 4Q27. source
• Provision for credit losses for the three months ended June 30, 2026: $2,515 million, versus $2,849 million in the prior-year period (down 12%) source
• For the six months ended June 30, 2026, provision for credit losses was $5,022 million versus $6,154 million for the six months ended June 30, 2025. source
• Provision for credit losses was $2,515 million for the three months ended June 30, 2026 and $2,849 million for the three months ended June 30, 2025; and $5,022 million and $6,154 million for the six months ended June 30, 2026 and 2025, respectively. source
• Provision for credit losses — three months ended June 30, 2026: $2,515 million; six months ended June 30, 2026: $5,022 million. source
• CIB provision for credit losses for the three months ended June 30, 2026: $(49) million (a negative provision). source
• Net charge-off rates for the three months ended June 30, 2026: 0.66%; for the three months ended June 30, 2025: 0.73%. source

Impact estimates