JPMorgan's Credit Charge Declines Amid Rising Reserve

JPMorgan Chase & Co. (NYSE:JPM) has reported a decrease in its provision for expected credit losses in the first half of 2026, but an increase in the reserve it holds against those losses.

This unusual combination is worth understanding before the bank's third-quarter numbers are released in mid-October.

The provision is the amount charged through JPMorgan's income statement in a period, while the allowance is the total stock held on the balance sheet against loans expected to sour eventually.

With a falling provision alongside a rising allowance, it appears that losses actually written off were small. The bank spent less topping up its reserve, and the reserve still grew because less was taken out of it.

This is a benign reading, likely indicating a healthy loan book with low charge-offs.

Revenue growth at JPMorgan has been strong, increasing 30.40% last quarter, while earnings grew 41.20%. The bank also returned 17.79% on equity.

The reserve held by the bank is an estimate of losses that have not yet occurred and is subject to assumptions about unemployment, rates, and growth.