Regulatory Capital

12 Months Ended

Dec. 31, 2022

Regulatory capital

The Federal Reserve establishes capital requirements, including well-capitalized requirements, 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 principal IDI subsidiary, JPMorgan Chase Bank, N.A.

The 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, including JPMorgan Chase Bank, N.A. Two comprehensive approaches are prescribed for calculating RWA: a standardized approach (“Basel III Standardized”), and an advanced approach (“Basel III Advanced”). For each of the risk-based capital ratios, the capital adequacy of the Firm and JPMorgan Chase Bank, N.A. is evaluated against the lower of the Standardized or Advanced approaches compared to their respective regulatory capital ratio requirements.

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

Under the risk-based capital and leverage-based guidelines of the Federal Reserve, JPMorgan Chase is required to maintain minimum ratios for CET1 capital, Tier 1 capital, Total capital, 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 established by their respective primary regulators.

The following table presents the risk-based regulatory capital ratio requirements and well-capitalized ratios to which the Firm and its IDI subsidiaries were subject as of December 31, 2022 and 2021.


	Standardized capital ratio requirements				Advanced capital ratio requirements				Well-capitalized ratios
	BHC(a)(b)		IDI(c)		BHC(a)		IDI(c)		BHC(d)		IDI(e)
Risk-based capital ratios
CET1 capital	12.0	%	7.0	%	10.5	%	7.0	%	NA		6.5	%
Tier 1 capital	13.5		8.5		12.0		8.5		6.0	%	8.0
Total capital	15.5		10.5		14.0		10.5		10.0		10.0

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 regulatory capital ratio requirements applicable to the Firm. The CET1, Tier 1 and Total capital ratio requirements each include a respective minimum requirement plus a GSIB surcharge of 3.5% as calculated under Method 2; plus a 4.0% SCB for Basel III Standardized ratios and a fixed 2.5% capital conservation buffer for Basel III Advanced ratios. The countercyclical buffer is currently set to 0% by the federal banking agencies.

(b)For the period ended December 31, 2021, the CET1, Tier 1, and Total capital ratio requirements under Basel III Standardized applicable to the Firm were 11.2%, 12.7% and 14.7%, respectively. SCB for Basel III Standardized ratio for 2021 was 3.2%.

(c)Represents requirements for JPMorgan Chase’s IDI subsidiaries. The CET1, Tier 1 and Total capital ratio requirements include a fixed capital conservation buffer requirement of 2.5% that is applicable to the IDI subsidiaries. The IDI subsidiaries are not subject to the GSIB surcharge.

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

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

The following table presents the leverage-based regulatory capital ratio requirements and well-capitalized ratios to which the Firm and its IDI subsidiaries were subject as of December 31, 2022 and 2021.


	Capital ratio requirements(a)				Well-capitalized ratios
	BHC		IDI		BHC(b)	IDI
Leverage-based capital ratios
Tier 1 leverage	4.0	%	4.0	%	NA	5.0	%
SLR	5.0		6.0		NA	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 minimum SLR requirement of 3.0%, as well as supplementary leverage buffer requirements of 2.0% and 3.0% for BHC and IDI subsidiaries, respectively.

(b)The Federal Reserve's regulations do not establish well-capitalized thresholds for these measures for BHCs.

CECL regulatory capital transition

Until December 31, 2021, the Firm’s capital reflected a two year delay of the effects of CECL provided by the Federal Reserve Board in response to the COVID-19 pandemic.

Beginning January 1, 2022, the $2.9 billion CECL capital benefit is being phased out at 25% per year over a three-year period. As of December 31, 2022, the Firm’s CET1 capital reflected the remaining $2.2 billion benefit associated with the CECL capital transition provisions.

Additionally, effective January 1, 2022, the Firm phased out 25% of the other CECL capital transition provisions which impacted Tier 2 capital, adjusted average assets, total leverage exposure and RWA, as applicable.

Refer to Note 1 for further information on the CECL accounting guidance.

The following tables present risk-based capital metrics under both the Basel III Standardized and Basel III Advanced approaches and leverage-based capital metrics for JPMorgan Chase and JPMorgan Chase Bank, N.A. As of December 31, 2022 and 2021, JPMorgan Chase and JPMorgan Chase Bank, N.A. were well-capitalized and met all capital requirements to which each was subject.


December 31, 2022 (in millions, except ratios)	Basel III Standardized						Basel III Advanced
	JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.
Risk-based capital metrics:(a)
CET1 capital	$	218,934		$	269,668		$	218,934		$	269,668
Tier 1 capital	245,631			269,672			245,631			269,672
Total capital	277,769			288,433			264,583			275,255
Risk-weighted assets	1,653,538			1,597,072			1,609,773			1,475,602
CET1 capital ratio	13.2		%	16.9		%	13.6		%	18.3		%
Tier 1 capital ratio	14.9			16.9			15.3			18.3
Total capital ratio	16.8			18.1			16.4			18.7


December 31, 2021 (in millions, except ratios)	Basel III Standardized						Basel III Advanced
	JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.
Risk-based capital metrics:(a)
CET1 capital	$	213,942		$	266,907		$	213,942		$	266,907
Tier 1 capital	246,162			266,910			246,162			266,910
Total capital	274,900			281,826			265,796			272,299
Risk-weighted assets	1,638,900			1,582,280			1,547,920			1,392,847
CET1 capital ratio	13.1		%	16.9		%	13.8		%	19.2		%
Tier 1 capital ratio	15.0			16.9			15.9			19.2
Total capital ratio	16.8			17.8			17.2			19.5

(a)The capital metrics reflect the CECL capital transition provisions.


Three months ended (in millions, except ratios)	December 31, 2022						December 31, 2021
	JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.
Leverage-based capital metrics:(a)
Adjusted average assets(b)	$	3,703,873		$	3,249,912		$	3,782,035		$	3,334,925
Tier 1 leverage ratio	6.6		%	8.3		%	6.5		%	8.0		%
Total leverage exposure	$	4,367,092		$	3,925,502		$	4,571,789		$	4,119,286
SLR	5.6		%	6.9		%	5.4		%	6.5		%

(a)The capital metrics reflect the CECL capital transition provisions.

(b)Adjusted average assets, for purposes of calculating the leverage ratios, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, and other intangible assets.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

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