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Regulatory Capital

3 Months Ended

Mar. 31, 2019

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. and Chase Bank USA, N.A.

Effective January 1, 2019, the capital adequacy of the Firm and its IDI subsidiaries is now evaluated against the fully phased-in measures under Basel III and represents the lower of the Standardized and 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 March 31, 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	%	—	%	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		5.0		5.0
SLR	5.0		6.0		—		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%, 4.0% and 5.0% 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%, 4.0% and 6.0%, 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 March 31, 2019 and December 31, 2018, JPMorgan Chase and all of its IDI subsidiaries were well-capitalized and met all capital requirements to which each was subject.



March 31, 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.			Chase Bank USA, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			Chase Bank USA, N.A.
Regulatory capital
CET1 capital	$	186,116		$	190,158		$	24,146		$	186,116		$	190,158		$	24,146
Tier 1 capital	212,644			190,158			24,146			212,644			190,158			24,146
Total capital	241,483			201,483			29,044			231,454			195,212			27,646

Assets
Risk-weighted	1,542,903			1,355,463			109,635			1,432,526			1,210,801			168,715
Adjusted average^(a)	2,637,741			2,219,559			122,546			2,637,741			2,219,559			122,546

Capital ratios^(b)
CET1	12.1		%	14.0		%	22.0		%	13.0		%	15.7		%	14.3		%
Tier 1	13.8			14.0			22.0			14.8			15.7			14.3
Total	15.7			14.9			26.5			16.2			16.1			16.4
Tier 1 leverage^(c)	8.1			8.6			19.7			8.1			8.6			19.7



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


(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.



	March 31, 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.			Chase Bank USA, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			Chase Bank USA, N.A.
Total leverage exposure	$	3,309,501		$	2,829,536		$	183,581		$	3,269,988		$	2,813,396		$	177,328
SLR	6.4		%	6.7		%	13.2		%	6.4		%	6.7		%	13.4		%

- Definition

The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

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