UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): June 29, 2020
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Item 8.01 Other Events.
On June 29, 2020, JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) announced that the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) has notified the Firm that its indicative Stress Capital Buffer (“SCB”) requirement is 3.3%, based on the 2020 CCAR stress test results. The Federal Reserve Board will provide the Firm with its final SCB requirement by August 31, 2020, and that requirement will become effective on October 1, 2020 and will remain in effect until September 30, 2021.
A copy of the Firm’s press release relating to this announcement is attached as Exhibit 99. The information set forth in Exhibit 99 shall be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended.
This Current Report on Form 8-K (including the Exhibit hereto) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of JPMorgan Chase’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorgan Chase’s actual results to differ materially from those described in the forward-looking statements can be found in JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, 2019 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, which have been filed with the Securities and Exchange Commission and are available on JPMorgan Chase’s website (https://jpmorganchaseco.gcs-web.com/financial-information/sec-filings) and on the Securities and Exchange Commission’s website (www.sec.gov). JPMorgan Chase does not undertake to update any forward-looking statements.
Item 9.01 Financial Statements and Exhibits
(d) Exhibit
Exhibit No. | Description of Exhibit | |
99 | ||
101 | Pursuant to Rule 406 of Regulation S-T, the cover page is formatted in Inline XBRL (Inline eXtensible Business Reporting Language). | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101). | |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
JPMorgan Chase & Co. |
(Registrant) |
By: | /s/ Jordan A. Costa |
Jordan A. Costa | |
Managing Director | |
Dated: | June 29, 2020 |
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JPMorgan Chase & Co. 383 Madison Avenue, New York, NY 10179 NYSE symbol: JPM www.jpmorganchase.com |  |
JPMorgan Chase Regulatory Capital Update
New York, June 29, 2020 - JPMorgan Chase & Co. (NYSE: JPM) (“JPMorgan Chase” or the “Firm”) announced today that it has completed the 2020 Comprehensive Capital Analysis and Review (“CCAR”) stress test process. The Firm’s indicative Stress Capital Buffer (“SCB”) requirement is 3.3% and the Federal Reserve Board will provide the Firm with its final SCB requirement by August 31, 2020. The SCB requirement will become effective on October 1, 2020 and will remain in effect until September 30, 2021. The SCB will be integrated into the Firm’s ongoing risk-based capital requirements, increasing the Firm’s Basel III Standardized approach minimum Common Equity Tier 1 capital ratio to 11.3% (up from 10.5%).
While JPMorgan Chase’s Board of Directors currently intends to maintain the quarterly common stock dividend of $0.90 per share for the third quarter of 2020, the Firm’s quarterly common stock dividends will be subject to approval by the Board of Directors at the customary times that those dividends are declared, which for the third quarter is during the month of September.
For all capital management decisions, the Board of Directors will take into account a variety of factors, including the Firm’s capital position, current market conditions, and the future economic and earnings outlook.
Jamie Dimon, Chairman and CEO of JPMorgan Chase said: “At this time, using both JPMorgan Chase’s and the Federal Reserve’s base case economic outlook, the Firm can continue to pay its dividend in future quarters while maintaining healthy capital and liquidity positions. If there is a significant deterioration in the future outlook, the Firm will, of course, consider reducing dividends. The Firm had already discontinued its stock repurchase program and has not intended to resume the program until the actual economic results improve substantially. In addition, the Federal Reserve Board has directed the Firm to discontinue its net share repurchases, at least through the end of the third quarter of 2020, which we already intended to do.
As the world is confronting one of the greatest health and economic threats of a generation, we remain fully committed to being there for our clients and communities across the globe. Our highest and best use of capital continues to be supporting our clients as they weather the current crisis. We will continue to maintain a fortress balance sheet that allows us to do our most important job, which is to support all of our stakeholders - small and large - in good times and, most importantly, during periods of extreme stress.”
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $3.1 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
Investor Contact: Jason Scott 212-270-2479 | Media Contact: Trish Wexler 212-270-5883 |