JP Morgan Chase 2015 Annual Report Download - page 164

Management’s discussion and analysis
154 JPMorgan Chase & Co./2015 Annual Report
The following table presents a reconciliation of the Firm’s
Basel III Transitional CET1 capital to the Firm’s estimated
Basel III Fully Phased-In CET1 capital as of December 31,
2015.
(in millions) December 31,
2015
Transitional CET1 capital $ 175,398
AOCI phase-in(a) 427
CET1 capital deduction phase-in(b) (2,005)
Intangible assets deduction phase-in(c) (546)
Other adjustments to CET1 capital(d) (85)
Fully Phased-In CET1 capital $ 173,189
(a) Includes the remaining balance of AOCI related to AFS debt securities
and defined benefit pension and other postretirement employee
benefit (“OPEB”) plans that will qualify as Basel III CET1 capital upon
full phase-in.
(b) Predominantly includes regulatory adjustments related to changes in
FVA/DVA, as well as CET1 deductions for defined benefit pension plan
assets and deferred tax assets related to net operating loss and tax
credit carryforwards.
(c) Relates to intangible assets, other than goodwill and MSRs, that are
required to be deducted from CET1 capital upon full phase-in.
(d) Includes minority interest and the Firm’s investments in its own CET1
capital instruments.
Capital rollforward
The following table presents the changes in Basel III Fully
Phased-In CET1 capital, Tier 1 capital and Tier 2 capital for
the year ended December 31, 2015.
Year Ended December 31, (in millions) 2015
Standardized/Advanced CET1 capital at December 31, 2014 $ 164,514
Net income applicable to common equity 22,927
Dividends declared on common stock (6,484)
Net purchase of treasury stock (3,835)
Changes in additional paid-in capital (770)
Changes related to AOCI (2,116)
Adjustment related to FVA/DVA (454)
Other (593)
Increase in Standardized/Advanced CET1 capital 8,675
Standardized/Advanced CET1 capital at December 31, 2015 $ 173,189
Standardized/Advanced Tier 1 capital at December 31, 2014 $ 184,572
Change in CET1 capital 8,675
Net issuance of noncumulative perpetual preferred stock 6,005
Other (205)
Increase in Standardized/Advanced Tier 1 capital 14,475
Standardized/Advanced Tier 1 capital at December 31, 2015 $ 199,047
Standardized Tier 2 capital at December 31, 2014 $ 32,147
Change in long-term debt and other instruments qualifying as
Tier 2 (748)
Change in qualifying allowance for credit losses (466)
Other (4)
Increase in Standardized Tier 2 capital (1,218)
Standardized Tier 2 capital at December 31, 2015 $ 30,929
Standardized Total capital at December 31, 2015 $ 229,976
Advanced Tier 2 capital at December 31, 2014 $ 21,607
Change in long-term debt and other instruments qualifying as
Tier 2 (748)
Change in qualifying allowance for credit losses 277
Other (4)
Increase in Advanced Tier 2 capital (475)
Advanced Tier 2 capital at December 31, 2015 $ 21,132
Advanced Total capital at December 31, 2015 $ 220,179