Sept 16 (Reuters) – JPMorgan Chase & Co’s capital
ratios would be above the minimum regulatory requirements in
case of a hypothetical “severely adverse scenario,” according to
mid-cycle stress test results released on Monday.
The largest U.S. bank projected a minimum Tier 1 common
ratio of 8.5 percent and a minimum Tier 1 capital ratio of 9.6
percent over the nine-quarter period through the second quarter
of 2015.
The severely adverse scenario is designed to be similar in
intensity and length to the 2007-2009 downturn and incorporates
severe market shock.
JPMorgan, which was asked by the Federal Reserve to fix
flaws in its capital plan during the annual stress tests in
March, said the assumed scenarios were run as of March 31 and
did not include feedback from the Fed.
JPMorgan calculated cumulative nine-quarter pre-provision
net revenue of $57 billion and loan losses of $32.1 billion,
JPMorgan’s mid-cycle stress test disclosures showed. ()
The company also said its year-end capital plan will reflect
enhanced forecasting methodologies and processes in response to
the Fed feedback it received during the second quarter.
JPMorgan was among a host of banks to release its mid-cycle
stress test results.
The company’s shares closed up a percent at $53.14 on Monday
on the New York Stock Exchange.
