Glossary
What is the loan-to-deposit ratio?
Definition
The loan-to-deposit ratio is a bank's loans, net of the allowance for credit losses, divided by its deposits. It compares what the bank has lent with the money its customers keep there. For example, JPMorgan Chase's loan-to-deposit ratio at the end of FY2025 was 57.3%, our calculation from its Form 10-K.
Formula
Loan-to-deposit ratio = Loans, net of allowance ÷ Deposits
The loan-to-deposit ratio divides loans, net of allowance, by deposits and shows the result as a percentage. The net loans line is the loan book after the allowance for credit losses. The allowance is the bank's estimate of the credit losses it expects on those loans. Loans are an asset, while deposits, the money customers keep with the bank, are a liability.
Both inputs sit on the balance sheet, which shows what a company owns and owes at one point in time.[1] Loans and deposits are both positive amounts, so no sign needs removing. The SEC's disclosure rules for banks also require detail on deposits, including average amounts, rates paid and amounts that are uninsured.[2]
Worked example: JPMorgan Chase
This example calculates the loan-to-deposit ratio from JPMorgan Chase's balance sheet at its latest fiscal year end, from its Form 10-K. The net loans line comes after the gross loans line and the allowance deducted from it, which JPMorgan Chase labels allowance for loan losses. JPMorgan Chase prints deposits as the first line under liabilities. Both lines sit in the audited statements that how to read a 10-K walks through.
To get the ratio, divide loans, net of allowance, by deposits and show the result as a percentage. The JPMorgan Chase stock fundamentals page shows both lines and the ratio at the bank's latest quarter ends.
| USD m | FY2025at |
|---|---|
| Loans, net of allowance | 1,467,664 |
| Deposits | 2,559,320 |
| Loan-to-deposit % | 57.3% |
Source: JPMorgan Chase Form 10-K for FY2025, SEC EDGAR
All periods: JPMorgan Chase balance sheet
How StockFactsheet calculates it
StockFactsheet takes both inputs of the loan-to-deposit ratio from the balance sheet as reported, with no adjustments. Loans are always the net line, after the allowance for credit losses, never the larger gross line. For a US bank, deposits are the total deposits line the balance sheet prints. For a bank that reports under IFRS, our table uses the customer deposits line, which usually leaves out amounts due to other banks.
Both inputs are balances at the period end, so the ratio describes one date, not an average for the year. Annual tables show it at each fiscal year end and quarterly tables at each quarter end. Bank income tables carry a second ratio we calculate from statement lines, the cost-to-income ratio. The full rule is in our methodology for loan-to-deposit ratio.
Common mistakes
- Using the gross loans line in a loan-to-deposit ratio: it is larger than the net line by the allowance for credit losses, so the ratio comes out higher than ours.
- Taking an asset line such as deposits with banks for the bank's deposits: that line is money the bank has placed with other banks, not its customers' money.
- Comparing a US bank's ratio directly with an IFRS bank's: total deposits and customer deposits can cover different depositors, so the ratios can differ in scope.
- Reading a higher loan-to-deposit ratio as a verdict on the bank: it compares loans and deposits at one date, and banks also fund loans with other borrowing and equity.
Sources and data
The references explain the term; the worked example's figures are as reported in the filings after them. Derived figures are our calculations (see Methodology).
(opens in new tab)- [1] Reference Beginners' Guide to Financial Statements
- [2] Reference SEC Modernizes Disclosures for Banking Registrants
- [3] Filing Form 10-K, fiscal year ended 31 Dec 2025
- [4] Our dataset StockFactsheet fundamentals dataset, extracted from SEC EDGAR XBRL on ; derived values (Q4, TTM, free cash flow, net debt, margins, growth rates and ratios) are explained in Methodology.
Cite this page
StockFactsheet (2026). "What is the loan-to-deposit ratio?" Signed off by OffScriptBySami. Updated ; data as of . https://stockfactsheet.com/learn/loan-to-deposit-ratio/
For information only. StockFactsheet does not recommend buying, selling or holding any security. Figures can contain errors; always check the original filings. Full disclaimer
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