2022 Annual Stress Test Disclosure
Dodd-Frank Act Stress Test Results
Supervisory Severely Adverse Scenario
June 27, 2022
This 2022 Annual Stress Test Disclosure presents the results of the annual stress test conducted by JPMorgan Chase & Co. ("JPMorgan Chase" or the "Firm") as required under the rules of the Board of Governors of the Federal Reserve System (the "Federal Reserve") that implement the Dodd-Frank Act Stress Test ("DFAST") requirements ("DFAST Rule"). The results reflect certain forecasted financial measures for the nine-quarter projection period (1Q22 through 1Q24) under the Supervisory Severely Adverse Scenario prescribed by the Federal Reserve. The stress test has been conducted in accordance with the regulations and other requirements of the Federal Reserve.
The results represent hypothetical estimates under the Supervisory Severely Adverse Scenario prescribed by the Federal Reserve on February 10, 2022 and do not represent JPMorgan Chase's forecasts of actual expected gains, losses, pre-provision net revenue ("PPNR"), net income before taxes, capital, risk-weighted assets ("RWA"), or capital ratios.
The results were calculated using forecasting models and methodologies developed by JPMorgan Chase. The Federal Reserve conducts its own stress tests of large banks, including JPMorgan Chase, based on forecasting models and methodologies developed by the Federal Reserve1. Because the models and methodologies utilized by the Firm and the Federal Reserve are different, the results separately published by the Federal Reserve2 may vary from those disclosed in this report. JPMorgan Chase may not be able to explain the differences between the results published in this report and the results published by the Federal Reserve. This report does not include information on the Firm's 2022 Stress Capital Buffer ("SCB") requirement, which will be published by the Federal Reserve by August 31, 2022.
JPMorgan Chase's results reflect the standardized set of capital action assumptions that are specified in the Federal Reserve's DFAST Rule3 for each quarter of the projection period, as follows:
No dividends on any instruments that qualify as common equity tier 1 capital ("CET1");
Payments on instruments that qualify as additional tier 1 capital or tier 2 capital equal to the stated dividend, interest, or principal due on such instrument;
No redemption or repurchase of any capital instrument that is eligible for inclusion in the numerator of a regulatory capital ratio; and
No issuances of common stock or preferred stock
A strong capital position is essential to the Firm's business strategy and competitive position. Maintaining a strong balance sheet to manage through economic
volatility is considered a strategic imperative of the Firm's Board of Directors, Chief Executive Officer and Operating Committee. Capital adequacy and stress testing is subject to oversight at the most senior levels of the Firm, including the Firm's Board of Directors. The annual DFAST Stress Test is subject to a
governance framework, which includes oversight by the Board of Directors, the Firmwide Asset and Liability Committee, Capital Governance Committee, the
Firmwide and line of business ("LOB") Chief Financial Officers and Chief Risk Officers, Model Risk Governance and Review, and Internal Audit.