Regulatory Capital

6 Months Ended

Jun. 30, 2019

Banking and Thrift [Abstract]

Regulatory Capital

Regulatory capital

For a detailed discussion on regulatory capital, refer to Note 26 of JPMorgan Chase’s 2018 Form 10-K.

The Federal Reserve establishes capital requirements, including well-capitalized standards, for the consolidated financial holding company. The Office of the Comptroller of the Currency (“OCC”) establishes similar minimum capital requirements and standards for the Firm’s insured depository institutions (“IDI”), including JPMorgan Chase Bank, N.A.

Effective January 1, 2019, the capital adequacy of the Firm and its IDI subsidiaries is evaluated against the fully phased-in measures under Basel III and represents the lower of the Standardized or Advanced approaches. During 2018, the required capital measures were subject to the transitional rules and as of December 31, 2018 were the same on a fully phased-in and on a transitional basis.

Under the risk-based capital and leverage-based 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 represents the minimum and well-capitalized ratios to which the Firm and its IDI subsidiaries were subject as of June 30, 2019.

	Minimum capital ratios				Well-capitalized ratios
	BHC(a)(e)(f)		IDI(b)(e)(f)		BHC(c)	IDI(d)
Capital ratios
CET1	10.5	%	7.0	%	N/A	6.5	%
Tier 1	12.0		8.5		6.0	8.0
Total	14.0		10.5		10.0	10.0
Tier 1 leverage	4.0		4.0		N/A	5.0
SLR	5.0		6.0		N/A	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 minimum capital ratios applicable to the Firm under Basel III. The CET1 minimum capital ratio includes a capital conservation buffer of 2.5% and GSIB surcharge of 3.5%.

(b) Represents requirements for JPMorgan Chase’s IDI subsidiaries. The CET1 minimum capital ratio includes a capital conservation buffer of 2.5% 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, 2018, the CET1, Tier 1, Total and Tier 1 leverage minimum capital ratios applicable to the Firm were 9.0%, 10.5%, 12.5%, and 4.0% and the CET1, Tier 1, Total and Tier 1 leverage minimum capital ratios applicable to the Firm’s IDI subsidiaries were 6.375%, 7.875%, 9.875%, 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 JPMorgan Chase Bank, N.A. under both the Basel III Standardized and Basel III Advanced Approaches. As of June 30, 2019 and December 31, 2018, JPMorgan Chase and JPMorgan Chase Bank, N.A. were well-capitalized and met all capital requirements to which each was subject.

June 30, 2019 (in millions, except ratios)	Basel III Standardized Fully Phased-In						Basel III Advanced Fully Phased-In
	JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.
Regulatory capital
CET1 capital	$	189,169		$	217,622		$	189,169		$	217,622
Tier 1 capital	215,808			217,622			215,808			217,622
Total capital	244,490			235,208			234,507			225,403
Assets
Risk-weighted	1,545,101			1,452,055			1,449,211			1,302,719
Adjusted average(a)	2,692,225			2,325,199			2,692,225			2,325,199
Capital ratios(b)
CET1	12.2		%	15.0		%	13.1		%	16.7		%
Tier 1	14.0			15.0			14.9			16.7
Total	15.8			16.2			16.2			17.3
Tier 1 leverage(c)	8.0			9.4			8.0			9.4

December 31, 2018 (in millions, except ratios)	Basel III Standardized Transitional						Basel III Advanced Transitional
	JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.(d)			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.(d)
Regulatory capital
CET1 capital	$	183,474		$	211,671		$	183,474		$	211,671
Tier 1 capital	209,093			211,671			209,093			211,671
Total capital	237,511			229,952			227,435			220,025
Assets
Risk-weighted	1,528,916			1,446,529			1,421,205			1,283,146
Adjusted average(a)	2,589,887			2,250,480			2,589,887			2,250,480
Capital ratios(b)
CET1	12.0		%	14.6		%	12.9		%	16.5		%
Tier 1	13.7			14.6			14.7			16.5
Total	15.5			15.9			16.0			17.1
Tier 1 leverage(c)	8.1			9.4			8.1			9.4

(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) On May 18, 2019, Chase Bank USA, N.A. merged with and into JPMorgan Chase Bank, N.A., with JPMorgan Chase Bank, N.A as the surviving entity. The December 31, 2018 amounts reported for JPMorgan Chase Bank, N.A. retrospectively reflect the impact of the merger.

	June 30, 2019						December 31, 2018
	Basel III Advanced Fully Phased-In						Basel III Advanced Fully Phased-In
(in millions, except ratios)	JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.(a)
Total leverage exposure	$	3,367,154		$	2,984,420		$	3,269,988		$	2,915,541
SLR	6.4		%	7.3		%	6.4		%	7.3		%

(a)

On May 18, 2019, Chase Bank USA, N.A. merged with and into JPMorgan Chase Bank, N.A., with JPMorgan Chase Bank, N.A as the surviving entity. The December 31, 2018 amounts reported for JPMorgan Chase Bank, N.A. retrospectively reflect the impact of the merger.