Regulatory Capital

6 Months Ended

Jun. 30, 2016

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 Office of the Comptroller of the Currency (“OCC”) establishes similar capital requirements and standards for the Firm’s national banks, including JPMorgan Chase Bank, N.A. and Chase Bank USA, N.A.

The Basel Committee’s most recent capital framework (“Basel III”) for large and internationally active U.S. bank holding companies and banks, including the Firm and its IDI subsidiaries, revised, among other things, the definition of capital and introduced a new CET1 capital requirement; presents two comprehensive methodologies for calculating RWA, a general (Standardized) approach, (“Basel III Standardized”) and an advanced approach, (“Basel III Advanced”); and sets out minimum capital ratios and overall capital adequacy standards. Certain of the requirements of Basel III are subject to phase-in periods that began on January 1, 2014 and continue through the end of 2018 (“Basel III Transitional”).

There are three categories of risk-based capital under the Basel III Transitional rules: CET1 capital, as well as Tier 1 capital and Tier 2 capital. CET1 capital predominantly includes commonstockholders’ equity(including capital for AOCI related to debt and equity securities classified as AFSas well as for defined benefit pension and OPEB plans), less certain deductions for goodwill,MSRsand deferred tax assets that arise from net operating loss (“NOL”) and tax credit carryforwards. Tier 1 capital predominantly consists of CET1 capital as well as perpetual preferred stock. Tier 2 capital includes long-term debt qualifying as Tier 2 and qualifying allowance for credit losses. Total capital is Tier 1 capital plus Tier 2 capital.

The followingtablespresentthe regulatory capital, assets and risk-based capital ratios forJPMorgan Chase and its significant national bank subsidiariesunder both Basel III Standardized Transitional and Basel III Advanced Transitional.

	JPMorgan Chase & Co.(e)
	Basel III Standardized Transitional						Basel III Advanced Transitional
(in millions, except ratios)	Jun 30, 2016			Dec 31, 2015			Jun 30, 2016			Dec 31, 2015
Regulatory capital
CET1 capital	$	179,593		$	175,398		$	179,593		$	175,398
Tier 1 capital(a)	204,390			200,482			204,390			200,482
Total capital	238,999			234,413			227,865			224,616
Assets
Risk-weighted	1,469,430			1,465,262			1,497,509			1,485,336
Adjusted  average(b)	2,391,819			2,358,471			2,391,819			2,358,471
Capital ratios(c)
CET1	12.2		%	12.0		%	12.0		%	11.8		%
Tier 1(a)	13.9			13.7			13.6			13.5
Total	16.3			16.0			15.2			15.1
Tier 1 leverage(d)	8.5			8.5			8.5			8.5

	JPMorgan Chase Bank, N.A.(e)
	Basel III Standardized Transitional						Basel III Advanced Transitional
(in millions, except ratios)	Jun 30, 2016			Dec 31, 2015			Jun 30, 2016			Dec 31, 2015
Regulatory capital
CET1 capital	$	173,841		$	168,857		$	173,841		$	168,857
Tier 1 capital(a)	174,090			169,222			174,090			169,222
Total capital	188,827			183,262			181,145			176,423
Assets
Risk-weighted	1,314,446			1,264,056			1,292,153			1,249,607
Adjusted average(b)	1,992,814			1,910,934			1,992,814			1,910,934
Capital ratios(c)
CET1	13.2		%	13.4		%	13.5		%	13.5		%
Tier 1(a)	13.2			13.4			13.5			13.5
Total	14.4			14.5			14.0			14.1
Tier 1 leverage(d)	8.7			8.9			8.7			8.9

	Chase Bank USA, N.A.(e)
	Basel III Standardized Transitional						Basel III Advanced Transitional
(in millions,  except ratios)	Jun 30, 2016			Dec 31, 2015			Jun 30, 2016			Dec 31, 2015
Regulatory capital
CET1 capital	$	16,457		$	15,419		$	16,457		$	15,419
Tier 1 capital(a)	16,457			15,419			16,457			15,419
Total capital	22,420			21,418			21,107			20,069
Assets
Risk-weighted	103,322			105,807			180,737			181,775
Adjusted average(b)	132,916			134,152			132,916			134,152
Capital ratios(c)
CET1	15.9		%	14.6		%	9.1		%	8.5		%
Tier 1(a)	15.9			14.6			9.1			8.5
Total	21.7			20.2			11.7			11.0
Tier 1 leverage(d)	12.4			11.5			12.4			11.5

(a) Includes the deduction associated with the permissible holdings of covered funds (as defined by the Volcker Rule) acquired after December 31, 2013 which was not material as of June 30, 2016.

(b) Adjusted average assets, for purposes of calculating the Tier 1 leverage ratio, includes total quarterly average assets adjusted for unrealized gains/(losses) on AFS securities, less deductions for goodwill and other intangible assets, defined benefit pension plan assets, and deferred tax assets related to NOL and tax credit carryforwards.

(c) For each of the risk-based capital ratios, the capital adequacy of the Firm and its national bank subsidiaries is evaluated against the Basel III approach, Standardized or Advanced, which results in the lower ratio (the “Collins Floor”), as required by the Collins Amendment of the Dodd-Frank Act.

(d) The Tier 1 leverage ratio is not a risk-based measure of capital. This ratio is calculated by dividing Tier 1 capital by adjusted average assets.

(e) Asset and capital amounts for JPMorgan Chase’s banking subsidiaries reflect intercompany transactions; whereas the respective amounts for JPMorgan Chase reflect the elimination of intercompany transactions.

Note: Rating agencies allow measures of capital to be adjusted upward for deferred tax liabilities, which have resulted from both nontaxable business combinations and from tax-deductible goodwill. The Firm had deferred tax liabilities resulting from nontaxable business combinations totaling $94 million and $105 million at June 30, 2016, and December 31, 2015, respectively; and deferred tax liabilities resulting from tax-deductible goodwill of $3.1 billion and $3.0 billion at June 30, 2016, and December 31, 2015, respectively.

Under the risk-based capital guidelines of the Federal Reserve, JPMorgan Chase is required to maintain minimum ratios of CET1, Tier 1 and Total capital to risk-weighted assets, as well as a minimum leverage ratio (which is defined as Tier 1 capital divided by adjusted quarterly average assets).Failure to meet these minimum requirements could cause the Federal Reserve to take action. National bank subsidiaries also are subject to these capital requirements by their respective primary regulators. The following table presents the minimum ratios to which the Firm and its national bank subsidiaries are subject as of June 30, 2016.

	Minimum capital ratios				Well-capitalized ratios
	BHC(a)		IDI(b)		BHC(c)		IDI(d)
Capital ratios
CET1	6.25	%	5.125	%	—	%	6.5	%
Tier 1	7.75		6.625		6.0		8.0
Total	9.75		8.625		10.0		10.0
Tier 1 leverage	4.0		4.0		—		5.0

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 national bank subsidiaries are subject.

(a) Represents the transitional minimum capital ratios applicable to the Firm under Basel III at June 30, 2016. Commencing in the first quarter of 2016, the CET1 minimum capital ratio includes 0.625% resulting from the phase in of the Firm’s 2.5% capital conservation buffer and 1.125%, resulting from the phase in of the Firm’s estimated 4.5% GSIB surcharge as of December 31, 2014 published by the Federal Reserve on July 20, 2015.

(b) Represents requirements for JPMorgan Chase’s banking subsidiaries. The CET1 minimum capital ratio includes 0.625% resulting from the phase in of the 2.5% capital conservation buffer that is applicable to the banking subsidiaries. The banking 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 bank subsidiaries pursuant to regulations issued under the FDIC Improvement Act.

As of June 30, 2016, and December 31, 2015, JPMorgan Chase and all of itsbanking subsidiaries were well-capitalized and met all capital requirements to which each was subject.