JP Morgan Chase 2015 Annual Report Download - page 160

Management’s discussion and analysis
150 JPMorgan Chase & Co./2015 Annual Report
The following tables present the Firm’s Transitional and Fully Phased-In risk-based and leverage-based capital metrics under
both Basel III Standardized and Advanced approaches. The Firm’s Basel III CET1 ratio exceeds the regulatory minimum as of
December 31, 2015. For further discussion of these capital metrics and the Standardized and Advanced approaches refer to
Monitoring and management of capital on pages 151–155.
Transitional Fully Phased-In
December 31, 2015
(in millions, except ratios) Standardized Advanced
Minimum
capital
ratios (c) Standardized Advanced
Minimum
capital
ratios (d)
Risk-based capital metrics:
CET1 capital $ 175,398 $ 175,398 $ 173,189 $ 173,189
Tier 1 capital 200,482 200,482 199,047 199,047
Total capital 234,413 224,616 229,976 220,179
Risk-weighted assets 1,465,262 (b) 1,485,336 1,474,870 1,495,520
CET1 capital ratio 12.0% 11.8% 4.5% 11.7% 11.6% 10.5%
Tier 1 capital ratio 13.7 13.5 6.0 13.5 13.3 12.0
Total capital ratio 16.0 15.1 8.0 15.6 14.7 14.0
Leverage-based capital metrics:
Adjusted average assets 2,361,177 2,361,177 2,360,499 2,360,499
Tier 1 leverage ratio(a) 8.5% 8.5% 4.0 8.4% 8.4% 4.0
SLR leverage exposure NA $ 3,079,797 NA $ 3,079,119
SLR NA 6.5% NA NA 6.5% 5.0 (e)
Transitional Fully Phased-In
December 31, 2014
(in millions, except ratios) Standardized Advanced
Minimum
capital
ratios (c) Standardized Advanced
Minimum
capital
ratios (d)
Risk-based capital metrics:
CET1 capital $ 164,426 $ 164,426 $ 164,514 $ 164,514
Tier 1 capital 186,263 186,263 184,572 184,572
Total capital 221,117 210,576 216,719 206,179
Risk-weighted assets 1,472,602 (b) 1,608,240 1,561,145 1,619,287
CET1 capital ratio 11.2% 10.2% 4.5% 10.5% 10.2% 9.5%
Tier 1 capital ratio 12.6 11.6 6.0 11.8 11.4 11.0
Total capital ratio 15.0 13.1 8.0 13.9 12.7 13.0
Leverage-based capital metrics:
Adjusted average assets 2,464,915 2,464,915 2,463,902 2,463,902
Tier 1 leverage ratio(a) 7.6% 7.6% 4.0 7.5% 7.5% 4.0
SLR leverage exposure NA NA NA $ 3,320,404
SLR NA NA NA NA 5.6% 5.0 (e)
Note: As of December 31, 2015 and 2014, the lower of the Standardized or Advanced capital ratios under each of the transitional and fully phased in approaches in the table above
represents the Firm’s Collins Floor, as discussed in Monitoring and management of Capital on page 151.
(a) 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.
(b) Effective January 1, 2015, the Basel III Standardized RWA is calculated under the Basel III definition of the Standardized approach. Prior periods were based on Basel I (inclusive
of Basel 2.5).
(c) Represents the transitional minimum capital ratios applicable to the Firm under Basel III as of December 31, 2015 and 2014.
(d) Represents the minimum capital ratios applicable to the Firm on a fully phased-in Basel III basis. At December 31, 2015, the ratios include the Firm’s estimate of its Fully
Phased-In U.S. GSIB surcharge of 3.5%, based on the final U.S. GSIB rule published by the Federal Reserve on July 20, 2015. At December 31, 2014, the ratios included the
Firm’s GSIB surcharge of 2.5% which was published in November 2014 by the Financial Stability Board and calculated under the Basel Committee on Banking Supervisions Final
GSIB rule. The minimum capital ratios will be fully phased-in effective January 1, 2019. For additional information on the GSIB surcharge, see page 152.
(e) In the case of the SLR, the fully phased-in minimum ratio is effective beginning January 1, 2018.