JPMorgan Chase & Co. released its company-run 2026 Dodd-Frank Act Stress Test (DFAST) results, which demonstrate the firm's ability to maintain strong capital levels under a hypothetical, severely adverse economic scenario. The projections show that even with significant projected losses, the bank's capital ratios would remain well above regulatory minimum requirements throughout the nine-quarter stress period.
Key Details
- Projected Capital Ratios: Under the severely adverse scenario, the firm's projected minimum Common Equity Tier 1 (CET1) capital ratio is 12.4%, remaining significantly above the 4.5% regulatory minimum.
- Projected Losses: Over the nine-quarter projection period (Q1 2026 - Q1 2028), the firm projects cumulative loan losses of $70.2 billion and total provisions for credit losses of $95.6 billion.
- Stress Scenario: The Federal Reserve's hypothetical scenario includes a severe global recession, a peak U.S. unemployment rate of 10.0%, a 58% decline in the stock market, and a 39% decline in commercial real estate prices.
- Revenue & Profitability: The firm forecasts $135.9 billion in pre-provision net revenue (PPNR) during the stress period, which would absorb projected credit, trading, and other losses, resulting in a cumulative pre-tax net income of $11.4 billion.