Regulatory Capital

12 Months Ended

Dec. 31, 2018

Banking and Thrift [Abstract]

Regulatory Capital

Regulatory capital

The Federal Reserve establishes capital requirements, including well-capitalized standards, for the consolidated financial holding company. The OCC establishes similar minimum capital requirements and standards for the Firm’s IDI, including JPMorgan Chase Bank, N.A. and Chase Bank USA, N.A.

Capital rules under Basel III establish minimum capital ratios and overall capital adequacy standards for large and internationally active U.S. bank holding companies and banks, including the Firm and its IDI subsidiaries. Basel III set forth two comprehensive approaches for calculating RWA: a standardized approach (“Basel III Standardized”) and an advanced approach (“Basel III Advanced”). Certain of the requirements of Basel III were subject to phase-in periods that began on January 1, 2014 and continued through the end of 2018 (“transitional period”).

The three components of regulatory capital under the Basel III rules are as illustrated below:

Under the risk-based and leverage-based capital guidelines of the Federal Reserve, JPMorgan Chase is required to maintain minimum ratios for CET1, Tier 1, Total, Tier 1 leverage and the SLR. Failure to meet these minimum requirements could cause the Federal Reserve to take action. IDI subsidiaries are also subject to these capital requirements by their respective primary regulators.

The following table presents the minimum and well-capitalized ratios to which the Firm and its IDI subsidiaries were subject as of December 31, 2018.

	Minimum capital ratios				Well-capitalized ratios
	BHC(a)(e)(f)		IDI(b)(e)(f)		BHC(c)		IDI(d)
Capital ratios
CET1	9.0	%	6.375	%	—	%	6.5	%
Tier 1	10.5		7.875		6.0		8.0
Total	12.5		9.875		10.0		10.0
Tier 1 leverage	4.0		4.00		5.0		5.0
SLR	5.0		6.00		—		6.0

Note: The table above is as defined by the regulations issued by the Federal Reserve, OCC and FDIC and to which the Firm and its IDI subsidiaries are subject.

(a) Represents the Transitional minimum capital ratios applicable to the Firm under Basel III at December 31, 2018. At December 31, 2018, the CET1 minimum capital ratio includes 1.875% resulting from the phase in of the Firm’s 2.5% capital conservation buffer, and 2.625% resulting from the phase in of the Firm’s 3.5% GSIB surcharge.

(b) Represents requirements for JPMorgan Chase’s IDI subsidiaries. The CET1 minimum capital ratio includes 1.875% resulting from the phase in of the 2.5% capital conservation buffer that is applicable to the IDI subsidiaries. The IDI subsidiaries are not subject to the GSIB surcharge.

(c) Represents requirements for bank holding companies pursuant to regulations issued by the Federal Reserve.

(d) Represents requirements for IDI subsidiaries pursuant to regulations issued under the FDIC Improvement Act.

(e) For the period ended December 31, 2017 the CET1, Tier 1, Total and Tier 1 leverage minimum capital ratios applicable to the Firm were 7.5%, 9.0%, 11.0% and 4.0% and the CET1, Tier 1, Total and Tier 1 leverage minimum capital ratios applicable to the Firm’s IDI subsidiaries were 5.75%, 7.25%, 9.25% and 4.0% respectively.

(f) Represents minimum SLR requirement of 3.0%, as well as, supplementary leverage buffers of 2.0% and 3.0% for BHC and IDI, respectively.

The following tables present the risk-based and leverage-based capital metrics for JPMorgan Chase and its significant IDI subsidiaries under both the Basel III Standardized and Basel III Advanced Approaches. As of December 31, 2018 and 2017, JPMorgan Chase and all of its IDI subsidiaries were well-capitalized and met all capital requirements to which each was subject.

December 31, 2018 (in millions, except ratios)	Basel III Standardized Transitional									Basel III Advanced Transitional
	JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			Chase Bank USA, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			Chase Bank USA, N.A.
Regulatory capital
CET1 capital	$	183,474		$	187,259		$	23,696		$	183,474		$	187,259		$	23,696
Tier 1 capital	209,093			187,259			23,696			209,093			187,259			23,696
Total capital	237,511			198,494			28,628			227,435			192,250			27,196
Assets
Risk-weighted	1,528,916			1,348,230			112,513			1,421,205			1,205,539			174,469
Adjusted average(a)	2,589,887			2,189,293			118,036			2,589,887			2,189,293			118,036
Capital ratios(b)
CET1	12.0		%	13.9		%	21.1		%	12.9		%	15.5		%	13.6		%
Tier 1	13.7			13.9			21.1			14.7			15.5			13.6
Total	15.5			14.7			25.4			16.0			15.9			15.6
Tier 1 leverage(c)	8.1			8.6			20.1			8.1			8.6			20.1

December 31, 2017 (in millions, except ratios)	Basel III Standardized Transitional										Basel III Advanced Transitional
	JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.				Chase Bank USA, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.				Chase Bank USA, N.A.
Regulatory capital
CET1 capital	$	183,300		$	184,375			$	21,600		$	183,300		$	184,375			$	21,600
Tier 1 capital	208,644			184,375				21,600			208,644			184,375				21,600
Total capital	238,395			195,839				27,691			227,933			189,510			(d)	26,250
Assets
Risk-weighted	1,499,506			1,338,970			(d)	113,108			1,435,825			1,241,916			(d)	190,523
Adjusted average(a)	2,514,270			2,116,031				126,517			2,514,270			2,116,031				126,517
Capital ratios(b)
CET1	12.2		%	13.8		%		19.1		%	12.8		%	14.8		%	(d)	11.3		%
Tier 1	13.9			13.8				19.1			14.5			14.8			(d)	11.3
Total	15.9			14.6			(d)	24.5			15.9			15.3			(d)	13.8
Tier 1 leverage(c)	8.3			8.7				17.1			8.3			8.7				17.1

(a) Adjusted average assets, for purposes of calculating the Tier 1 leverage ratio, includes total quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill and other intangible assets.

(b) For each of the risk-based capital ratios, the capital adequacy of the Firm and its IDI subsidiaries is evaluated against the lower of the two ratios as calculated under Basel III approaches (Standardized or Advanced).

(c) The Tier 1 leverage ratio is not a risk-based measure of capital.

(d) The prior period amounts have been revised to conform with the current period presentation.

	December 31, 2018								December 31, 2017
	Basel III Advanced Fully Phased-In								Basel III Advanced Transitional
(in millions, except ratios)	JPMorgan Chase & Co.		JPMorgan Chase Bank, N.A.			Chase Bank USA, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			Chase Bank USA, N.A.
Total leverage exposure(a)	3,269,988		$	2,813,396		$	177,328		$	3,204,463		$	2,775,041		$	182,803
SLR(a)	6.4	%	6.7		%	13.4		%	6.5		%	6.6		%	11.8		%

(a)

Effective January 1, 2018, the SLR was fully phased-in under Basel III. The December 31, 2017 amounts were calculated under the Basel III Transitional rules.