Capital Onereason 03 of 4it owns a thing that cannot be built or permitted twicederived 2026-08-21accession 0000927628-26-000089
Allowance for credit losses decreased by $443 million to $23.0 billion as of June 30, 2026 compared to December 31, 2025 primarily driven by an allowance release in our Domestic Card loan portfolio, partially offset by a build in our auto loan portfolio
Our allowance coverage ratio decreased by 14 bps to 5.02% as of June 30, 2026 compared to December 31, 2025 primarily driven by favorable credit performance in our Domestic Card loan portfolio
The net charge-off rate decreased by 49 bps to 4.71% in Q2 2026 compared to Q2 2025 and decreased by 72 bps to 4.88% in H1 2026 compared to H1 2025 primarily due to favorable observed credit performance
the finding
Net charge-offs increased from $3,060 million to $3,642 million (+19.0%), bearing on the assessment of credit performance underlying the allowance decrease.
The report says this changed. It does not say whether that is good or bad, so neither do we.
the sentence · figures · latest period
“Net charge-offs: 3642.0 (+19.0%)”
the phrase the reading rests on
Net charge-offs: 3060.0
the evidence · every sentence checkedthree sentences · whole, uncut
the claims it rests on
“Allowance for credit losses decreased by $443 million to $23.0 billion as of June 30, 2026 compared to December 31, 2025 primarily driven by an allowance release in our Domestic Card loan portfolio, partially offset by a build in our auto loan portfolio”
“Our allowance coverage ratio decreased by 14 bps to 5.02% as of June 30, 2026 compared to December 31, 2025 primarily driven by favorable credit performance in our Domestic Card loan portfolio”
“The net charge-off rate decreased by 49 bps to 4.71% in Q2 2026 compared to Q2 2025 and decreased by 72 bps to 4.88% in H1 2026 compared to H1 2025 primarily due to favorable observed credit performance”