JP Morgan Chase 2014 Annual Report Download - page 132

Management’s discussion and analysis
130 JPMorgan Chase & Co./2014 Annual Report
Provision for credit losses
For the year ended December 31, 2014, the provision for
credit losses was $3.1 billion, compared with $225 million
for the year ended December 31, 2013.
The increase in consumer, excluding credit card, provision
for credit losses for the year ended December 31, 2014
reflected a $904 million reduction in the allowance for loan
losses, as noted above in the Allowance for Credit Losses
discussion, which was lower than the $3.8 billion reduction
in the prior year. The lower allowance reduction was
partially offset by lower net charge-offs in 2014.
The increase in credit card provision for credit losses for the
year ended December 31, 2014 reflected a $350 million
reduction in the allowance for loan losses, as noted above in
the Allowance for Credit Losses discussion, which was lower
than the $1.7 billion reduction in the prior year. The lower
allowance reduction was partially offset by lower net
charge-offs in 2014.
The wholesale provision for credit losses for the year ended
December 31, 2014 reflected a continued favorable credit
environment as evidenced by low charge-off rates, and
declining nonaccrual balances and other portfolio activity.
For further information on the provision for credit losses,
see the Consolidated Results of Operations on pages 68–71.
Year ended December 31, Provision for loan losses Provision for lending-related commitments Total provision for credit losses
(in millions) 2014 2013 2012 2014 2013 2012 2014 2013 2012
Consumer, excluding credit card $ 414 $ (1,872) $ 302 $ 5 $ 1 $ — $ 419 $ (1,871) $ 302
Credit card 3,079 2,179 3,444 —— — 3,079 2,179 3,444
Total consumer 3,493 307 3,746 51 — 3,498 308 3,746
Wholesale (269) (119) (359) (90) 36 (2) (359) (83) (361)
Total $ 3,224 $ 188 $ 3,387 $ (85) $ 37 $ (2) $ 3,139 $ 225 $ 3,385