The table below presents information about loans.


$ in millions	Amortized Cost		Fair Value		Held For Sale		Total
As of December 2025
Loan Type
Corporate	$	29,432	$	326	$	918	$	30,676
Commercial real estate	36,261		420		728		37,409
Residential real estate	28,700		3,257		–		31,957
Securities-based	18,079		–		–		18,079
Other collateralized	97,519		855		625		98,999


Credit cards	–		–		19,742		19,742
Other	2,920		47		53		3,020
Total loans, gross	212,911		4,905		22,066		239,882
Allowance for loan losses	(2,148)		–		–		(2,148)
Total loans	$	210,763	$	4,905	$	22,066	$	237,734

As of December 2024
Loan Type
Corporate	$	28,689	$	467	$	816	$	29,972
Commercial real estate	28,899		424		466		29,789
Residential real estate	22,243		3,726		–		25,969
Securities-based	16,477		–		–		16,477
Other collateralized	74,008		783		316		75,107
Credit cards	19,615		–		1,788		21,403
Other	1,950		60		139		2,149
Total loans, gross	191,881		5,460		3,525		200,866
Allowance for loan losses	(4,666)		–		–		(4,666)
Total loans	$	187,215	$	5,460	$	3,525	$	196,200

Beginning in the first quarter of 2025, as a result of a decrease in the balance of installment loans (due to the sales of GreenSky and the seller financing loan portfolio in 2024), the remaining installment loans originated by the firm were included in other loans. Previously, such loans were disclosed separately in the table above. The carrying value of installment loans was $22 million as of December 2025 and $70 million as of December 2024. Prior period amounts have been conformed to the current presentation.

In the table above:

•Loans held for investment that are accounted for at amortized cost include net deferred fees and costs, and unamortized premiums and discounts, which are amortized over the life of the loan. These amounts were less than 1% of loans accounted for at amortized cost as of both December 2025 and December 2024.

•Substantially all loans had floating interest rates as of both December 2025 and December 2024.

•In December 2025, the firm transferred the Apple Card loan portfolio of $21.26 billion ($19.74 billion after markdowns) to held for sale. See Note 18 for information about the related commitments that were classified as held for sale. As a result, during the fourth quarter of 2025, the firm recognized a $2.48 billion reduction in loan loss reserves (reflected in provision for credit losses), partially offset by a reduction in net revenues of $2.26 billion from markdowns on the outstanding credit card loan portfolio (to reflect this portfolio at the lower of its cost or fair value) and contract termination obligations in connection with the agreement to transition the program to another issuer.

•During 2024, the firm sold the seller financing loan portfolio. The net carrying value of such loans at the time of the sale was not material.

•During 2024, the firm completed the sale of the GreenSky loan portfolio of $3.69 billion. During 2025, the firm sold the GM credit card program to another issuer. The net carrying value of this credit card loan portfolio at the time of the sale was $1.54 billion.

The following is a description of the loan types in the table above:

•Corporate. Corporate loans includes term loans, revolving lines of credit, letter of credit facilities and bridge loans, and are principally used for operating and general corporate purposes, or in connection with acquisitions. Corporate loans are secured (typically by a senior lien on the assets of the borrower) or unsecured, depending on the loan purpose, the risk profile of the borrower and other factors.

•Commercial Real Estate. Commercial real estate loans includes originated loans that are directly or indirectly secured by hotels, retail stores, multifamily housing complexes and commercial and industrial properties. Commercial real estate loans also includes loans extended to clients who warehouse assets that are directly or indirectly backed by commercial real estate. In addition, commercial real estate includes loans purchased by the firm.

•Residential Real Estate. Residential real estate loans primarily includes loans extended to wealth management clients and to clients who warehouse assets that are directly or indirectly secured by residential real estate. In addition, residential real estate includes loans purchased by the firm.

•Securities-Based. Securities-based loans includes loans that are secured by stocks, bonds, mutual funds, and exchange-traded funds. These loans are primarily extended to the firm’s wealth management clients and used for purposes other than purchasing, carrying or trading margin stocks. Securities-based loans require borrowers to post additional collateral on a daily basis (daily margin requirement) based on changes in the underlying collateral’s fair value.

•Other Collateralized. Other collateralized loans includes loans that are backed by specific collateral (other than securities-based loans where there is a daily margin requirement and real estate loans). Such loans include loans to investment funds (managed by third parties) that are collateralized by capital commitments of the funds’ investors or assets held by the fund. Other collateralized loans also includes loans extended to clients who warehouse assets (that are directly or indirectly secured by corporate loans, consumer loans and other assets), as well as other secured loans extended to the firm’s wealth management and corporate clients.

•Credit Cards. Credit card loans are loans made pursuant to revolving lines of credit issued to consumers by the firm.

•Other. Other loans primarily includes unsecured loans extended to wealth management clients and unsecured consumer loans purchased by the firm.

See Note 4 for an overview of the firm’s fair value measurement policies, valuation techniques and significant inputs used to determine the fair value of loans, and Note 5 for information about loans within the fair value hierarchy.

Credit Quality

Risk Assessment. The firm’s risk assessment process includes evaluating the credit quality of its loans by Risk. For corporate loans and a majority of securities-based, real estate, other collateralized and other loans, the firm performs credit analyses which incorporate initial and ongoing evaluations of the capacity and willingness of a borrower to meet its financial obligations. These credit evaluations are performed on an annual basis or more frequently if deemed necessary as a result of events or changes in circumstances. The firm determines an internal credit rating for the borrower by considering the results of the credit evaluations and assumptions with respect to the nature of and outlook for the borrower’s industry and the economic environment. For collateralized loans, the firm also takes into consideration collateral received or other credit support arrangements when determining an internal credit rating. For credit card loans and for loans that are not assigned an internal credit rating, including U.S. residential mortgage loans extended to wealth management clients, the firm reviews certain key metrics, including, but not limited to, the Fair Isaac Corporation (FICO) credit scores, loan to value ratios, delinquency status, collateral value and other risk factors.

The table below presents gross loans by an internally determined public rating agency equivalent or other credit metrics and the concentration of secured and unsecured loans.


$ in millions	Investment-Grade			Non-Investment- Grade			Other Metrics/Unrated			Total
As of December 2025
Accounting Method
Amortized cost	$	149,682		$	47,675		$	15,554		$	212,911
Fair value	595			1,025			3,285			4,905
Held for sale	695			1,578			19,793			22,066
Total	$	150,972		$	50,278		$	38,632		$	239,882
Loan Type
Corporate	$	9,243		$	21,432		$	1		$	30,676
Real estate:
Commercial	25,529			11,763			117			37,409
Residential	16,190			2,262			13,505			31,957
Securities-based	13,130			343			4,606			18,079
Other collateralized	84,179			14,231			589			98,999


Credit cards	–			–			19,742			19,742
Other	2,701			247			72			3,020
Total	$	150,972		$	50,278		$	38,632		$	239,882

Secured	94		%	90		%	49		%	86		%
Unsecured	6		%	10		%	51		%	14		%
Total	100		%	100		%	100		%	100		%
As of December 2024
Accounting Method
Amortized cost	$	113,986		$	45,595		$	32,300		$	191,881
Fair value	505			856			4,099			5,460
Held for sale	869			745			1,911			3,525
Total	$	115,360		$	47,196		$	38,310		$	200,866
Loan Type
Corporate	$	8,601		$	21,370		$	1		$	29,972
Real estate:
Commercial	18,175			11,514			100			29,789
Residential	10,227			3,375			12,367			25,969
Securities-based	12,662			320			3,495			16,477
Other collateralized	63,896			10,442			769			75,107
Credit cards	–			–			21,403			21,403
Other	1,799			175			175			2,149
Total	$	115,360		$	47,196		$	38,310		$	200,866

Secured	93		%	90		%	43		%	83		%
Unsecured	7		%	10		%	57		%	17		%
Total	100		%	100		%	100		%	100		%

In the table above:

•Substantially all residential real estate loans included in the other metrics/unrated category consists of loans extended to wealth management clients. As of both December 2025 and December 2024, substantially all of such loans had a loan-to-value ratio of less than 80% and were performing in accordance with the contractual terms. Additionally, as of both December 2025 and December 2024, the vast majority of such loans had a FICO credit score of greater than 740.

•The vast majority of securities-based loans included in the other metrics/unrated category had a loan-to-value ratio of less than 80% and were performing in accordance with the contractual terms as of both December 2025 and December 2024.

•For credit card loans included in the other metrics/unrated category, the evaluation of credit quality incorporates the borrower’s FICO credit score. FICO credit scores are periodically refreshed by the firm to assess the updated creditworthiness of the borrower. See “Vintage” below for information about credit card loans by FICO credit scores as of December 2024.

The firm also assigns a regulatory risk rating to its loans based on the definitions provided by the U.S. federal bank regulatory agencies. Total loans included 95% of loans as of December 2025 and 93% of loans as of December 2024 that were rated pass/non-criticized.

Vintage. The tables below present gross loans accounted for at amortized cost (excluding credit card loans) by an internally determined public rating agency equivalent or other credit metrics and origination year for term loans.


	As of December 2025
$ in millions	Investment- Grade			Non-Investment- Grade			Other Metrics/ Unrated			Total
2025	$	2,153		$	3,840		$	–		$	5,993
2024	623			1,645			–			2,268
2023	705			723			–			1,428
2022	680			838			–			1,518
2021	75			1,756			–			1,831
2020 or earlier	477			1,529			–			2,006
Revolving	4,419			9,881			1			14,301
Revolving converted to term	–			87			–			87
Corporate	9,132			20,299			1			29,432
2025	3,452			2,866			88			6,406
2024	3,653			1,058			–			4,711
2023	993			545			28			1,566
2022	858			1,225			1			2,084
2021	390			1,730			–			2,120
2020 or earlier	851			1,272			–			2,123
Revolving	14,440			2,523			–			16,963
Revolving converted to term	185			103			–			288
Commercial real estate	24,822			11,322			117			36,261
2025	1,242			274			2,692			4,208
2024	89			38			1,434			1,561
2023	90			–			1,155			1,245
2022	86			41			2,367			2,494
2021	15			74			2,453			2,542
2020 or earlier	–			19			307			326
Revolving	14,624			1,700			–			16,324
Residential real estate	16,146			2,146			10,408			28,700
2025	5			–			–			5
2024	1,750			38			–			1,788
2023	38			–			–			38
2022	5			–			–			5

Revolving	11,332			305			4,606			16,243
Securities-based	13,130			343			4,606			18,079
2025	10,064			4,475			135			14,674
2024	4,158			1,881			78			6,117
2023	2,355			735			93			3,183
2022	614			178			24			816
2021	725			233			48			1,006
2020 or earlier	590			63			44			697
Revolving	64,769			5,754			–			70,523
Revolving converted to term	503			–			–			503
Other collateralized	83,778			13,319			422			97,519
2025	618			56			–			674
2024	251			72			–			323
2023	81			11			–			92
2022	22			1			–			23
2021	22			–			–			22
2020 or earlier	–			3			–			3
Revolving	1,680			103			–			1,783
Other	2,674			246			–			2,920
Total	$	149,682		$	47,675		$	15,554		$	212,911
Percentage of total	70		%	23		%	7		%	100		%


	As of December 2024
$ in millions	Investment- Grade			Non-Investment- Grade			Other Metrics/ Unrated			Total
2024	$	1,447		$	2,545		$	–		$	3,992
2023	1,522			1,446			–			2,968
2022	727			2,084			1			2,812
2021	215			2,244			–			2,459
2020	102			1,287			–			1,389
2019 or earlier	376			1,910			–			2,286
Revolving	4,001			8,696			–			12,697
Revolving converted to term	–			86			–			86
Corporate	8,390			20,298			1			28,689
2024	2,988			1,669			27			4,684
2023	1,079			1,252			–			2,331
2022	1,018			1,664			–			2,682
2021	624			1,901			–			2,525
2020	273			766			–			1,039
2019 or earlier	972			738			18			1,728
Revolving	10,355			2,944			5			13,304
Revolving converted to term	201			405			–			606
Commercial real estate	17,510			11,339			50			28,899
2024	713			584			1,746			3,043
2023	224			9			1,414			1,647
2022	87			46			2,537			2,670
2021	21			122			2,598			2,741
2020	–			6			41			47
2019 or earlier	–			19			306			325
Revolving	9,182			2,588			–			11,770
Residential real estate	10,227			3,374			8,642			22,243
2024	1,528			78			16			1,622
2023	35			–			–			35
2022	5			–			–			5


2019 or earlier	–			22			–			22
Revolving	11,094			220			3,479			14,793
Securities-based	12,662			320			3,495			16,477
2024	5,033			2,009			151			7,193
2023	3,816			1,279			150			5,245
2022	910			144			42			1,096
2021	546			739			72			1,357
2020	854			566			26			1,446
2019 or earlier	196			45			25			266
Revolving	51,373			5,211			15			56,599
Revolving converted to term	710			96			–			806
Other collateralized	63,438			10,089			481			74,008
2024	257			73			–			330
2023	113			10			–			123
2022	36			6			–			42
2021	16			–			16			32
2020	–			2			–			2

Revolving	1,337			84			–			1,421
Other	1,759			175			16			1,950
Total	$	113,986		$	45,595		$	12,685		$	172,266
Percentage of total	66		%	27		%	7		%	100		%

The table below presents gross credit card loans (which consist of revolving lines of credit) that were accounted for at amortized cost as of December 2024 by refreshed FICO credit scores. As of December 2025, the firm did not have credit card loans accounted for at amortized cost.



	As of December
$ in millions	2025			2024
Refreshed FICO credit score
Greater than or equal to 660	$	–	–	$	13,090	67	%
Less than 660	–		–	6,525		33	%
Total	$	–	–	$	19,615	100	%

Credit Concentrations. The table below presents the concentration of gross loans by region.


$ in millions	Carrying Value		Americas		EMEA		Asia		Total
As of December 2025
Corporate	$	30,676	66	%	25	%	9	%	100	%
Commercial real estate	37,409		76	%	20	%	4	%	100	%
Residential real estate	31,957		92	%	7	%	1	%	100	%
Securities-based	18,079		78	%	22	%	–		100	%
Other collateralized	98,999		80	%	18	%	2	%	100	%


Credit cards	19,742		100	%	–		–		100	%
Other	3,020		97	%	3	%	–		100	%
Total	$	239,882	81	%	16	%	3	%	100	%
As of December 2024
Corporate	$	29,972	66	%	26	%	8	%	100	%
Commercial real estate	29,789		78	%	18	%	4	%	100	%
Residential real estate	25,969		94	%	5	%	1	%	100	%
Securities-based	16,477		76	%	24	%	–		100	%
Other collateralized	75,107		86	%	12	%	2	%	100	%
Credit cards	21,403		100	%	–		–		100	%
Other	2,149		96	%	4	%	–		100	%
Total	$	200,866	83	%	14	%	3	%	100	%

In the table above:

•EMEA represents Europe, Middle East and Africa.

•The top five industry concentrations for corporate loans as of December 2025 were 26% for technology, media & telecommunications, 18% for diversified industrials, 16% for real estate, 10% for consumer & retail and 8% for financial institutions.

•The top five industry concentrations for corporate loans as of December 2024 were 24% for technology, media & telecommunications, 16% for diversified industrials, 14% for real estate, 9% for financial institutions and 9% for healthcare.

Nonaccrual, Past Due and Modified Loans. Loans accounted for at amortized cost (other than credit card loans) are placed on nonaccrual status when it is probable that the firm will not collect all principal and interest due under the contractual terms, regardless of the delinquency status or if a loan is past due for 90 days or more, unless the loan is both well collateralized and in the process of collection. At that time, all accrued but uncollected interest is reversed against interest income and interest subsequently collected is recognized on a cash basis to the extent the loan balance is deemed collectible. Otherwise, all cash received is used to reduce the outstanding loan balance. A loan is considered past due when a principal or interest payment has not been made according to its contractual terms. Credit card loans were not placed on nonaccrual status and accrued interest until the loan was paid in full or was charged off.

The table below presents information about past due loans accounted for at amortized cost.


$ in millions	30-89 days		90 days or more		Total
As of December 2025
Corporate	$	–	$	32	$	32
Commercial real estate	336		281		617
Residential real estate	3		19		22
Securities-based	2		–		2
Other collateralized	57		6		63


Other	–		34		34
Total	$	398	$	372	$	770
Total divided by gross loans at amortized cost					0.4		%

As of December 2024
Corporate	$	–	$	15	$	15
Commercial real estate	186		286		472
Residential real estate	3		18		21
Securities-based	6		–		6
Other collateralized	–		5		5

Credit cards	417		456		873

Total	$	612	$	780	$	1,392
Total divided by gross loans at amortized cost					0.7		%

The table below presents information about nonaccrual loans accounted for at amortized cost.



	As of December

$ in millions	2025			2024
Corporate	$	2,065		$	1,977
Commercial real estate	1,079			800
Residential real estate	85			104
Securities-based	–			2
Other collateralized	121			757
Other	37			12
Total	$	3,387		$	3,652
Total divided by gross loans at amortized cost	1.6		%	1.9		%

In the table above:

•Nonaccrual loans included $756 million as of December 2025 and $322 million as of December 2024 of loans that were 30 days or more past due.

•Loans that were 90 days or more past due and still accruing were not material as of both December 2025 and December 2024.

•Allowance for loan losses as a percentage of total nonaccrual loans was 63.4% as of December 2025 and 127.8% as of December 2024.

•Commercial real estate, residential real estate, securities-based and other collateralized loans are collateral dependent loans and the repayment of such loans is generally expected to be provided by the operation or sale of the underlying collateral. The allowance for credit losses for such nonaccrual loans is determined by considering the fair value of the collateral less estimated costs to sell, if applicable. See Note 4 for further information about fair value measurements.

The firm may modify the terms of a loan agreement for a borrower experiencing financial difficulty. Such modifications may include, among other things, forbearance of interest or principal, payment extensions or interest rate reductions.

The table below presents the carrying value of loans accounted for at amortized cost, as of both December 2025 and December 2024, that were modified during either 2025 or 2024.


	Year Ended December


$ in millions	2025		2024
Modified loans	$	848	$	1,208

In the table above:

•During 2025, loan modifications were primarily in the form of term and payment extensions and the impact of these modifications was not material. During 2024, loan modifications were primarily in the form of term extensions. These extensions increased the weighted average term for loans modified by 19 months.

•As of December 2025, substantially all of the modified loans were related to corporate and commercial real estate loans. Such modified loans represented less than 2% of corporate loans (at amortized cost) and approximately 1% of commercial real estate loans (at amortized cost).

•As of December 2024, substantially all of the modified loans were related to corporate, commercial real estate and credit card loans. Such modified loans represented approximately 2% of corporate loans (at amortized cost), and approximately 1% of both commercial real estate loans (at amortized cost) and credit card loans (at amortized cost).

•Lending commitments related to modified loans were $191 million as of December 2025 and were $156 million as of December 2024.

•During both 2025 and 2024, loans that defaulted after being modified were not material. The vast majority of the modified loans as of December 2025 and substantially all of the modified loans as of December 2024 were performing in accordance with the modified contractual terms.

Allowance for Credit Losses

The firm’s allowance for credit losses consists of the allowance for losses on loans and lending commitments accounted for at amortized cost. Loans and lending commitments accounted for at fair value or accounted for at the lower of cost or fair value are not subject to an allowance for credit losses.

To determine the allowance for credit losses, the firm classifies its loans and lending commitments accounted for at amortized cost into wholesale and consumer portfolios. These portfolios represent the level at which the firm has developed and documented its methodology to determine the allowance for credit losses. The allowance for credit losses is measured on a collective basis for loans that exhibit similar risk characteristics using a modeled approach and on an asset-specific basis for loans that do not share similar risk characteristics. As of December 2025, as a result of transferring the Apple Card loan portfolio to held for sale, the firm no longer has any loans in the consumer portfolio that are subject to an allowance for credit losses.

The allowance for credit losses takes into account the weighted average of a range of forecasts of future economic conditions over the expected life of the loans and lending commitments. The expected life of each loan or lending commitment is determined based on the contractual term adjusted for extension options or demand features, or was modeled in the case of revolving credit card loans. The forecasts include multiple economic scenarios over a three-year period. For loans with expected lives beyond three years, the model reverts to historical loss information based on a non-linear modeled approach. The forecasted economic scenarios consider a number of risk factors relevant to the wholesale portfolio and, prior to December 2025, also considered risk factors relevant to the consumer portfolio, as described below. The firm applies judgment in weighting individual scenarios each quarter based on a variety of factors, including the firm’s internally derived economic outlook, market consensus, recent macroeconomic conditions and industry trends.

The allowance for credit losses also includes qualitative components which allow management to reflect the uncertain nature of economic forecasting, capture uncertainty regarding model inputs, and account for model imprecision and concentration risk. The qualitative factors considered by management include, among others, changes and trends in loan portfolios, uncertainties associated with the macroeconomic and geopolitical environments, credit concentrations, changes in volume and severity of past due and criticized loans, idiosyncratic events and deterioration within an industry or region.

Management’s estimate of credit losses entails judgment about the expected life of the loan and loan collectability at the reporting dates, and there are uncertainties inherent in those judgments. The allowance for credit losses is subject to a governance process that involves senior management within Risk and Controllers. Personnel within Risk are responsible for forecasting the economic variables that underlie the economic scenarios that are used in the modeling of expected credit losses. While management uses the best information available to determine this estimate, future adjustments to the allowance may be necessary based on, among other things, changes in the economic environment or variances between actual results and the original assumptions used.

The table below presents gross loans and lending commitments accounted for at amortized cost by portfolio.


	As of December
	2025				2024

$ in millions	Loans		Lending Commitments		Loans		Lending Commitments
Wholesale
Corporate	$	29,432	$	179,236	$	28,689	$	156,562
Commercial real estate	36,261		7,109		28,899		4,969
Residential real estate	28,700		3,017		22,243		1,742
Securities-based	18,079		784		16,477		1,542
Other collateralized	97,519		47,741		74,008		33,136
Other	2,920		1,085		1,950		872
Consumer

Credit cards	–		–		19,615		63,781
Total	$	212,911	$	238,972	$	191,881	$	262,604

In the table above, wholesale loans included $3.39 billion as of December 2025 and $3.65 billion as of December 2024 of nonaccrual loans for which the allowance for credit losses was measured on an asset-specific basis. The allowance for credit losses on these loans was $975 million as of December 2025 and $735 million as of December 2024. These loans included $656 million as of December 2025 and $585 million as of December 2024 of loans which did not require a reserve as the loan was deemed to be recoverable.

See Note 18 for further information about lending commitments.

The following is a description of the methodology used to calculate the allowance for credit losses:

Wholesale. The allowance for credit losses for wholesale loans and lending commitments that exhibit similar risk characteristics is measured using a modeled approach. These models determine the probability of default and loss given default based on various risk factors, including internal credit ratings, industry default and loss data, expected life, macroeconomic indicators, the borrower’s capacity to meet its financial obligations, the borrower’s country of risk and industry, loan seniority and collateral type. For lending commitments, the methodology also considers the probability of drawdowns or funding. In addition, for loans backed by real estate, risk factors include the loan-to-value ratio, debt service ratio and home price index. The most significant inputs to the forecast model for wholesale loans and lending commitments include unemployment rates, GDP, credit spreads, commercial and industrial delinquency rates, short- and long-term interest rates, and oil prices.

The allowance for loan losses for wholesale loans that do not share similar risk characteristics, such as nonaccrual loans, is calculated using the present value of expected future cash flows discounted at the loan’s effective interest rate, the observable market price of the loan, or, in the case of collateral dependent loans, the fair value of the collateral less estimated costs to sell, if applicable. Wholesale loans are charged off against the allowance for loan losses when such loans are determined to be uncollectible. Such determination is based on several factors, which may include the expected outcome of loan restructuring efforts and the valuation of the underlying collateral.

Consumer. The allowance for credit losses for consumer loans that exhibit similar risk characteristics was calculated using a modeled approach which classified consumer loans into pools based on borrower-related and exposure-related characteristics that differentiate a pool’s risk characteristics from other pools. The factors considered in determining a pool were generally consistent with the risk characteristics used for internal credit risk measurement and management and included key metrics, such as FICO credit scores, delinquency status, loan vintage and macroeconomic indicators. The most significant inputs to the forecast model for consumer loans included unemployment rates and delinquency rates. The expected life of revolving credit card loans was determined by modeling expected future draws and the timing and amount of repayments allocated to the funded balance. The firm did not recognize an allowance for credit losses on credit card lending commitments as they are cancellable by the firm.

Credit card loans are charged off when they are 180 days past due.

Allowance for Credit Losses Rollforward

The table below presents information about the allowance for credit losses.


$ in millions	Wholesale			Consumer			Total




































Year Ended December 2025
Allowance for loan losses
Beginning balance	$	2,099		$	2,567		$	4,666
Charge-offs	(104)			(1,353)			(1,457)
Recoveries	42			165			207
Net (charge-offs)/recoveries	(62)			(1,188)			(1,250)
Provision	225			(1,379)			(1,154)
Other	(114)			–			(114)
Ending balance	$	2,148		$	–		$	2,148

Allowance ratio	1.0		%	–			1.0		%
Net charge-off ratio	0.0%			6.1		%	0.6		%
Allowance for losses on lending commitments
Beginning balance	$	674		$	–		$	674
Provision	52			–			52
Other	5			–			5
Ending balance	$	731		$	–		$	731

Year Ended December 2024
Allowance for loan losses
Beginning balance	$	2,576		$	2,474		$	5,050
Charge-offs	(169)			(1,471)			(1,640)
Recoveries	121			104			225
Net (charge-offs)/recoveries	(48)			(1,367)			(1,415)
Provision	(292)			1,540			1,248
Other	(137)			(80)			(217)
Ending balance	$	2,099		$	2,567		$	4,666

Allowance ratio	1.2		%	13.1		%	2.4		%
Net charge-off ratio	0.0		%	7.6		%	0.8		%
Allowance for losses on lending commitments
Beginning balance	$	620		$	–		$	620
Provision	56			–			56
Other	(2)			–			(2)
Ending balance	$	674		$	–		$	674

In the table above:

•Other (within allowance for loan losses) primarily represented the reduction to the allowance related to loans transferred to held for sale.

•The allowance ratio is calculated by dividing the allowance for loan losses by gross loans accounted for at amortized cost.

•The net charge-off ratio is calculated by dividing net (charge-offs)/recoveries by average gross loans accounted for at amortized cost.

Forecast Model Inputs as of December 2025

When modeling expected credit losses, the firm employs a weighted, multi-scenario forecast, which includes baseline, favorable and adverse economic scenarios. As of December 2025, this multi-scenario forecast was weighted towards the baseline and adverse economic scenarios.

The table below presents the forecasted U.S. unemployment and U.S. GDP growth rates used in the baseline economic scenario of the forecast model.


As of December 2025
U.S. unemployment rate
Forecast for the quarter ended:
June 2026	4.7	%
December 2026	4.4	%
June 2027	4.4	%

U.S. GDP rate
Forecast for the year:
2026	1.9	%
2027	1.8	%
2028	1.9	%

In the table above:

•U.S. unemployment rate represents the rate forecasted as of the respective quarter-end.

•U.S. GDP rate represents the year-over-year growth rate forecasted for the respective years.

The adverse economic scenario of the forecast model reflects a global recession, resulting in an economic contraction and rising unemployment rates. In this scenario, the U.S. unemployment rate peaks at 7.4% (during the first quarter of 2027) and the maximum decline in quarterly U.S. GDP relative to the fourth quarter of 2025 is 3.0% (which occurs during the fourth quarter of 2026).

In the multi-scenario forecast, the weighted average peak U.S. unemployment rate is 5.4% (during the first quarter of 2027) and the largest difference in quarterly U.S. GDP between the baseline scenario and the weighted average is 1.7% (which occurs during the second quarter of 2027).

While the U.S. unemployment and U.S. GDP growth rates are significant inputs to the forecast model, the model contemplates a variety of other inputs across a range of scenarios to provide a forecast of future economic conditions. Given the complex nature of the forecasting process, no single economic variable can be viewed in isolation and independently of other inputs.

Allowance for Credit Losses Commentary

Year Ended December 2025. The allowance for credit losses decreased by $2.46 billion during 2025, primarily related to a reserve release associated with the Apple Card loan portfolio upon transferring the Apple Card loans to held for sale.

Charge-offs for 2025 for wholesale loans (principally related to term loans originated in 2021) were primarily related to corporate loans and charge-offs for consumer loans were related to credit cards.

Year Ended December 2024. The allowance for credit losses decreased by $330 million during 2024, primarily reflecting a reserve release relating to the wholesale portfolio due to improved macroeconomic environment, partially offset by growth in the credit card portfolio.

Charge-offs for 2024 for wholesale loans (principally related to term loans originated in 2022 and 2021) were primarily related to corporate loans and charge-offs for consumer loans were primarily related to credit cards.

Estimated Fair Value

The table below presents the estimated fair value of loans that are not accounted for at fair value and in what level of the fair value hierarchy they would have been classified if they had been included in the firm’s fair value hierarchy.


	Carrying Value		Estimated Fair Value
$ in millions			Level 2		Level 3		Total
As of December 2025
Amortized cost	$	210,763	$	113,861	$	97,210	$	211,071
Held for sale	$	22,066	$	21,383	$	694	$	22,077
As of December 2024
Amortized cost	$	187,215	$	99,790	$	89,540	$	189,330
Held for sale	$	3,525	$	2,928	$	600	$	3,528