JPMorgan Chase & Co. has completed the U.S. Governments Supervisory Capital Assessment Program (SCAP), which determined that JPMorgan Chases capital position would remain strong under far more highly stressed conditions than exist today, and that there is no need for the company to raise additional capital at this time.
JPMorgan Chases capital base and loan-loss reserves, together with its significant pretax, pre-provision earnings power, would enable it to weather adverse scenarios envisioned by SCAP, while still maintaining very strong capital ratios. JPMCs ratios under SCAP would remain very strong even when excluding TARP preferred stock. Importantly, the company believes it could handle a substantially worse environment than the Governments adverse conditions, even though the company is not expecting such a scenario.
Specifically, JPMorgan Chases Tier 1 Capital Ratio is 11.4% — or 9.3% excluding TARP — as of 31 March 2009. The companys Tier 1 Common Ratio is 7.3% as of 31 March 2009, which is well in excess of the Governments 4.0% buffer level, and would remain so even under more highly adverse scenarios.
JPMorgan Chase has worked hard to maintain its fortress balance sheet and strong capital position in this challenging environment, says Jamie Dimon, chairman and chief executive officer.
We are committed to supporting healthy economic growth and to doing our part to help our country through these tough times. In particular, we remain committed to safe and sound lending and to being a responsible corporate citizen. In the first quarter of this year alone, JPMorgan Chase lent more than USD150 billion to consumers, small businesses, non-profits, municipalities, corporations and others.
L.D.