Comprehensive Capital Analysis and Review 2015:
Assessment Framework and Results, March 2015
Print- Capital Plan Assessment Framework and Factors
- Summary of Results
Summary of Results
As noted above, CCAR allows the Federal Reserve to evaluate a BHC's capital adequacy on a forward-looking, post-stress basis by reviewing the BHC's ability to maintain capital above a tier 1 common ratio of 5 percent and above all minimum regulatory capital requirements under expected and stressed conditions. In addition, in CCAR, the Federal Reserve performs a qualitative assessment of practices supporting the BHC's capital planning process. The Federal Reserve may object to a firm's capital plan on either quantitative or qualitative grounds.
When the Federal Reserve objects to a BHC's capital plan, the BHC may not make any capital distribution unless the Federal Reserve indicates in writing that it does not object to the distribution.17 This year, for the first time, no firm fell below the quantitative benchmarks that must be met in CCAR after some BHCs made one-time downward adjustments to their planned capital distributions or redemptions.
Based on the qualitative assessment conducted in CCAR 2015, the Federal Reserve did not object to the capital plan or planned capital distributions for the BHCs listed in the "Non-objection to capital plan" and the "Conditional non-objection to the capital plan" columns in table 3. The Federal Reserve objected to the capital plans of the BHCs listed in the "Objection to capital plan" column in the table. Each of these BHCs had critical or widespread significant deficiencies in their capital planning process that undermine the overall reliability of the BHC's capital planning process.
| Non-objection to capital plan | Conditional non-objection to capital plan | Objection to capital plan |
|---|---|---|
| Ally Financial Inc. | Bank of America Corporation | Deutsche Bank Trust Corporation |
| American Express Company | Santander Holdings USA, Inc. | |
| The Bank of New York Mellon Corporation | ||
| BB&T Corporation | ||
| BBVA Compass Bancshares, Inc. | ||
| BMO Financial Corp. | ||
| Capital One Financial Corporation | ||
| Citigroup Inc. | ||
| Citizens Financial Group, Inc. | ||
| Comerica Incorporated | ||
| Discover Financial Services | ||
| Fifth Third Bancorp | ||
| The Goldman Sachs Group, Inc. | ||
| HSBC North America Holdings Inc. | ||
| Huntington Bancshares Incorporated | ||
| JPMorgan Chase & Co. | ||
| KeyCorp | ||
| M&T Bank Corporation | ||
| Morgan Stanley | ||
| MUFG Americas Holdings Corporation | ||
| Northern Trust Corporation | ||
| The PNC Financial Services Group, Inc. | ||
| Regions Financial Corporation | ||
| State Street Corporation | ||
| SunTrust Banks, Inc. | ||
| U.S. Bancorp | ||
| Wells Fargo & Co. | ||
| Zions Bancorporation |
The Board of Governors objected to the capital plans of Deutsche Bank Trust Corporation and Santander Holdings USA, Inc. These BHCs may only make capital distributions that are expressly permitted by the Federal Reserve. They may choose to resubmit their capital plans to the Federal Reserve following substantial progress in the remediation of the issues that led to the objections, consistent with the requirements in the Federal Reserve's capital plan rule.18
Reasons for Qualitative Objections to Specific BHCs' Capital Plans
The Board of Governors objected to Santander's CCAR 2015 capital plan on qualitative grounds because of widespread and critical deficiencies across the BHC's capital planning processes. Specific deficiencies were identified in a number of key areas, including governance, internal controls, risk identification and risk management, management information systems (MIS), and assumptions and analysis that support the BHC's capital planning processes.
The Board of Governors also objected on qualitative grounds to the capital plan of Deutsche Bank Trust Corporation. Deutsche Bank Trust Corporation's capital planning and stress testing practices were assessed based on the standards applied to the largest, most systemic banking organizations in the United States, because of the size, scope, and complexity of Deutsche Bank's U.S. operations. In its evaluation, the Federal Reserve identified numerous and significant deficiencies across Deutsche Bank Trust Corporation's risk-identification, measurement, and aggregation processes; approaches to loss and revenue projection; and internal controls.
Reasons for Conditional Non-objection to Bank of America's Capital Plan
The Board of Governors did not object to Bank of America Corporation's capital plan. However, Bank of America exhibited deficiencies in its capital planning process. These deficiencies warrant further near-term attention but do not undermine the quantitative results of the stress tests for the firm. Those deficiencies included weaknesses in certain aspects of Bank of America's loss and revenue modeling practices and in some aspects of the BHC's internal controls. Accordingly, as a condition of not objecting to Bank of America's capital plan, the Board of Governors is requiring Bank of America to remediate these deficiencies and resubmit its capital plan by September 30, 2015. If Bank of America does not satisfactorily address the identified weaknesses in its capital planning process by that time, the Board of Governors would expect to object to the resubmitted capital plan and may restrict Bank of America's capital distributions.
Results of Quantitative Assessment
As noted above, no firms were objected to on quantitative grounds in CCAR 2015.Tables 4 and 5 contain minimum post-stress tier 1 common ratios for each of the 31 BHCs under the supervisory severely adverse and adverse scenarios. The middle column of the table incorporates the original planned capital distributions included in the capital plans submitted by the BHCs in January 2015. The ratios reported in the right-hand column incorporate any adjusted capital distributions submitted by a BHC after receiving the Federal Reserve's preliminary CCAR post-stress capital analysis.
| Bank holding company | Stressed ratio with original planned capital actions |
Stressed ratio with adjusted planned capital actions |
|---|---|---|
| Ally Financial Inc. | 7.1 | |
| American Express Company | 8.2 | |
| Bank of America Corporation | 6.8 | |
| The Bank of New York Mellon Corporation | 11.4 | |
| BB&T Corporation | 7.1 | |
| BBVA Compass Bancshares, Inc. | 6.3 | |
| BMO Financial Corp. | 9.0 | |
| Capital One Financial Corporation | 7.0 | |
| Citigroup Inc. | 7.1 | |
| Citizens Financial Group, Inc. | 9.8 | |
| Comerica Incorporated | 7.9 | |
| Deutsche Bank Trust Corporation | 34.7 | |
| Discover Financial Services | 10.4 | |
| Fifth Third Bancorp | 6.9 | |
| The Goldman Sachs Group, Inc. | 5.8 | 6.4 |
| HSBC North America Holdings Inc. | 8.9 | |
| Huntington Bancshares Incorporated | 7.9 | |
| JPMorgan Chase & Co. | 5.0 | 5.5 |
| KeyCorp | 8.5 | |
| M&T Bank Corporation | 6.9 | |
| Morgan Stanley | 5.9 | 5.9 |
| MUFG Americas Holdings Corporation | 8.0 | |
| Northern Trust Corporation | 10.8 | |
| The PNC Financial Services Group, Inc. | 8.0 | |
| Regions Financial Corporation | 6.8 | |
| Santander Holdings USA, Inc. | 9.4 | 9.4 |
| State Street Corporation | 10.8 | |
| SunTrust Banks, Inc. | 7.3 | |
| U.S. Bancorp | 7.3 | |
| Wells Fargo & Company | 6.2 | |
| Zions Bancorporation | 5.1 |
Note: These projections represent hypothetical estimates that involve an economic outcome that is more adverse than expected. These estimates are not forecasts of capital ratios. The table includes the minimum ratios assuming the capital actions originally submitted in January 2015 by the BHCs in their annual capital plans and the minimum ratios incorporating any adjustments to capital distributions made by BHCs after reviewing the Federal Reserve's stress test projections. The minimum capital ratios are for the period 2014:Q4 to 2016:Q4 and do not necessarily occur in the same quarter.
Source: Federal Reserve estimates in the severely adverse scenario.
Tables 6.A and 6.B report minimum capital ratios under the supervisory severely adverse scenario based on both the original and adjusted planned capital actions, where applicable. The ratios based on adjusted capital actions are only reported for those BHCs that submitted adjustments.
In the supervisory severely adverse scenario, three BHCs--The Goldman Sachs Group, Inc.; JPMorgan Chase & Co.; and Morgan Stanley--were projected to have at least one minimum post-stress capital ratio lower than regulatory minimum levels based on their original planned capital actions. The Goldman Sachs Group, Inc., fell below the minimum required post-stress tier 1 risk-based and total risk-based capital ratios; JPMorgan Chase & Co. fell below the minimum required post-stress tier 1 leverage ratio; and Morgan Stanley fell below the minimum required post-stress tier 1 risk-based and total risk-based capital ratios. (See the applicable minimum capital ratios for advanced approaches BHCs provided in table 6.A and the applicable capital ratios for other BHCs provided in table 6.B.) However, all three BHCs were able to maintain post-stress regulatory capital ratios above minimum requirements in the severely adverse scenario after submitting adjusted capital actions. In addition, one BHC that did not fall below the minimum required post-stress capital ratios--Santander Holdings USA, Inc.--also chose to adjust its planned capital actions.
Tables 7.A and 7.B report minimum capital ratios in the supervisory adverse scenario based on both the original and adjusted planned capital actions, where applicable.
| Bank holding company | Stressed ratio with original planned capital actions |
Stressed ratio with adjusted planned capital actions |
|---|---|---|
| Ally Financial Inc. | 8.7 | |
| American Express Company | 10.3 | |
| Bank of America Corporation | 9.9 | |
| The Bank of New York Mellon Corporation | 13.1 | |
| BB&T Corporation | 8.5 | |
| BBVA Compass Bancshares, Inc. | 9.5 | |
| BMO Financial Corp. | 11.5 | |
| Capital One Financial Corporation | 9.2 | |
| Citigroup Inc. | 11.1 | |
| Citizens Financial Group, Inc. | 11.3 | |
| Comerica Incorporated | 9.8 | |
| Deutsche Bank Trust Corporation | 36.3 | |
| Discover Financial Services | 12.1 | |
| Fifth Third Bancorp | 8.7 | |
| The Goldman Sachs Group, Inc. | 11.4 | 12.1 |
| HSBC North America Holdings Inc. | 13.9 | |
| Huntington Bancshares Incorporated | 8.9 | |
| JPMorgan Chase & Co. | 8.7 | 9.0 |
| KeyCorp | 9.9 | |
| M&T Bank Corporation | 9.0 | |
| Morgan Stanley | 11.7 | 11.7 |
| MUFG Americas Holdings Corporation | 11.3 | |
| Northern Trust Corporation | 12.3 | |
| The PNC Financial Services Group, Inc. | 9.8 | |
| Regions Financial Corporation | 9.3 | |
| Santander Holdings USA, Inc. | 11.5 | 11.5 |
| State Street Corporation | 12.6 | |
| SunTrust Banks, Inc. | 9.0 | |
| U.S. Bancorp | 9.0 | |
| Wells Fargo & Company | 8.7 | |
| Zions Bancorporation | 10.4 |
Note: These projections represent hypothetical estimates that involve an economic outcome that is more adverse than expected. These estimates are not forecasts of capital ratios. The table includes the minimum ratios assuming the capital actions originally submitted in January 2015 by the BHCs in their annual capital plans and the minimum ratios incorporating any adjustments to capital distributions made by BHCs after reviewing the Federal Reserve's stress test projections. The minimum capital ratios are for the period 2014:Q4 to 2016:Q4 and do not necessarily occur in the same quarter.
Source: Federal Reserve estimates in the adverse scenario.
| Bank holding company | Capital actions | Tier 1 common ratio (%) | Common equity tier 1 ratio (%) | Tier 1 risk-based capital ratio (%) |
Total risk-based capital ratio (%) | Tier 1 leverage ratio (%) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Actual 2014:Q3 | Projected minimum | Actual 2014:Q3 | Projected 2014:Q4 | Projected 2015-16 minimum | Actual 2014:Q3 | Projected 2014:Q4 | Projected 2015-16 minimum | Actual 2014:Q3 | Projected minimum | Actual 2014:Q3 | Projected minimum | ||
| American Express Company | Original | 13.2 | 8.2 | 13.6 | 13.2 | 8.0 | 13.6 | 13.8 | 9.2 | 15.1 | 10.9 | 11.6 | 7.6 |
| Adjusted | |||||||||||||
| Bank of America Corporation | Original | 11.3 | 6.8 | 12.0 | 10.3 | 6.6 | 12.8 | 10.8 | 7.7 | 15.8 | 10.7 | 7.9 | 5.0 |
| Adjusted | |||||||||||||
| The Bank of New York Mellon Corporation | Original | 13.9 | 11.4 | 15.1 | 16.5 | 11.1 | 16.3 | 17.6 | 12.9 | 17.0 | 13.3 | 5.8 | 4.8 |
| Adjusted | |||||||||||||
| Capital One Financial Corporation | Original | 12.7 | 7.0 | 12.7 | 12.7 | 7.1 | 13.3 | 13.6 | 8.7 | 15.2 | 10.8 | 10.6 | 6.8 |
| Adjusted | |||||||||||||
| Citigroup Inc. | Original | 13.4 | 7.1 | 15.1 | 11.4 | 6.4 | 15.1 | 11.4 | 6.6 | 17.7 | 9.4 | 9.0 | 4.4 |
| Adjusted | |||||||||||||
| The Goldman Sachs Group, Inc. | Original | 15.2 | 5.8 | 15.1 | 10.5 | 4.9 | 17.0 | 11.6 | 5.9 | 19.8 | 7.6 | 9.0 | 4.5 |
| Adjusted | 15.2 | 6.4 | 15.1 | 10.5 | 5.4 | 17.0 | 11.6 | 6.4 | 19.8 | 8.1 | 9.0 | 4.8 | |
| HSBC North America Holdings Inc. | Original | 14.0 | 8.9 | 16.3 | 15.2 | 8.9 | 17.3 | 17.3 | 10.0 | 26.1 | 15.2 | 9.4 | 6.0 |
| Adjusted | |||||||||||||
| JPMorgan Chase & Co. | Original | 10.9 | 5.0 | 11.1 | 9.6 | 4.9 | 12.6 | 11.0 | 6.0 | 15.0 | 8.3 | 7.6 | 3.8 |
| Adjusted | 10.9 | 5.5 | 11.1 | 9.6 | 5.3 | 12.6 | 11.0 | 6.5 | 15.0 | 8.8 | 7.6 | 4.1 | |
| Morgan Stanley | Original | 15.0 | 5.9 | 15.2 | 10.5 | 5.9 | 17.1 | 11.2 | 6.0* * | 19.8 | 7.4 | 8.2 | 4.2 |
| Adjusted | 15.0 | 5.9 | 15.2 | 10.5 | 5.9 | 17.1 | 11.2 | 6.2 | 19.8 | 8.2 | 8.2 | 4.2 | |
| Northern Trust Corporation | Original | 12.8 | 10.8 | 12.8 | 12.6 | 9.4 | 13.6 | 13.4 | 10.0 | 16.0 | 12.1 | 7.9 | 6.4 |
| Adjusted | |||||||||||||
| The PNC Financial Services Group, Inc. | Original | 11.0 | 8.0 | 11.1 | 11.0 | 7.0 | 12.8 | 12.8 | 8.3 | 16.1 | 11.1 | 11.1 | 7.3 |
| Adjusted | |||||||||||||
| State Street Corporation | Original | 13.9 | 10.8 | 15.0 | 14.2 | 6.5 | 16.7 | 16.3 | 8.7 | 19.1 | 10.6 | 6.4 | 4.3 |
| Adjusted | |||||||||||||
| U.S. Bancorp | Original | 9.5 | 7.3 | 9.7 | 9.6 | 6.8 | 11.3 | 11.3 | 8.5 | 13.6 | 10.7 | 9.4 | 7.1 |
| Adjusted | |||||||||||||
| Wells Fargo & Company | Original | 10.8 | 6.2 | 11.1 | 10.3 | 5.5 | 12.6 | 11.7 | 7.1 | 15.6 | 10.5 | 9.6 | 5.6 |
| Adjusted | |||||||||||||
Note: These projections represent hypothetical estimates that involve an economic outcome that is more adverse than expected. These estimates are not forecasts of capital ratios. The table includes the minimum ratios assuming the capital actions originally submitted in January 2015 by the BHCs in their annual capital plans and the minimum ratios incorporating any adjustments to capital distributions made by BHCs after reviewing the Federal Reserve's stress test projections. The minimum capital ratios are for the period 2014:Q4 to 2016:Q4 and do not necessarily occur in the same quarter.
*Actual value below 6.0 percent minimum, presented as 6.0 percent due to rounding. Return to table
Source: Federal Reserve estimates in the severely adverse scenario.
| Regulatory ratio | 2014:Q4 | 2015-16 |
|---|---|---|
| Tier 1 common ratio | 5 percent | 5 percent |
| Common equity tier 1 ratio | 4 percent | 4.5 percent |
| Tier 1 risk-based capital ratio | 5.5 percent | 6 percent |
| Total risk-based capital ratio | 8 percent | 8 percent |
| Tier 1 leverage ratio | 4 percent | 4 percent |
Note: For purposes of CCAR 2015, an advanced approaches BHC includes any BHC that has consolidated assets greater than or equal to $250 billion or total consolidated on-balance sheet foreign exposure of at least $10 billion as of December 31, 2014. See 12 CFR 217.100(b)(1). Other BHCs include any BHC that is subject to 12 CFR 225.8 and is not an advanced approaches BHC.
The tier 1 common ratio is calculated using the definitions of tier 1 capital and total risk-weighted assets in 12 CFR part 225, appendixes A and E. All other ratios are calculated in accordance with the transition arrangements provided in the Board's revised regulatory capital framework. See 12 CFR 217.
| Bank holding company | Capital actions | Tier 1 common ratio (%) | Common equity tier 1 ratio (%) | Tier 1 risk-based capital ratio (%) |
Total risk-based capital ratio (%) | Tier 1 leverage ratio (%) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Actual 2014:Q3 | Projected minimum | Actual 2014:Q3 | Projected 2014:Q4 | Projected 2015-16 minimum | Actual 2014:Q3 | Projected 2014:Q4 | Projected 2015-16 minimum | Actual 2014:Q3 | Projected minimum | Actual 2014:Q3 | Projected minimum | ||
| Ally Financial Inc. | Original | 9.7 | 7.1 | n.a. | n.a. | 7.3 | 12.7 | 12.0 | 8.3 | 13.5 | 10.1 | 10.9 | 7.2 |
| Adjusted | n.a. | n.a. | |||||||||||
| BB&T Corporation | Original | 10.5 | 7.1 | n.a. | n.a. | 7.1 | 12.4 | 12.1 | 8.7 | 15.2 | 11.4 | 9.7 | 6.6 |
| Adjusted | n.a. | n.a. | |||||||||||
| BBVA Compass Bancshares, Inc. | Original | 11.0 | 6.3 | n.a. | n.a. | 6.9 | 11.3 | 10.7 | 6.9 | 13.3 | 9.6 | 9.6 | 5.4 |
| Adjusted | n.a. | n.a. | |||||||||||
| BMO Financial Corp. | Original | 11.5 | 9.0 | n.a. | n.a. | 7.4 | 11.5 | 11.1 | 7.4 | 15.5 | 10.3 | 8.3 | 5.2 |
| Adjusted | n.a. | n.a. | |||||||||||
| Citizens Financial Group, Inc. | Original | 12.9 | 9.8 | n.a. | n.a. | 10.0 | 12.9 | 12.1 | 10.2 | 16.1 | 13.9 | 10.9 | 8.2 |
| Adjusted | n.a. | n.a. | |||||||||||
| Comerica Incorporated | Original | 10.6 | 7.9 | n.a. | n.a. | 7.6 | 10.6 | 10.2 | 7.6 | 12.8 | 10.3 | 10.8 | 7.8 |
| Adjusted | n.a. | n.a. | |||||||||||
| Deutsche Bank Trust Corporation | Original | 36.6 | 34.7 | n.a. | n.a. | 28.6 | 36.6 | 36.0 | 28.6 | 37.0 | 29.8 | 11.9 | 11.0 |
| Adjusted | n.a. | n.a. | |||||||||||
| Discover Financial Services | Original | 14.8 | 10.4 | n.a. | n.a. | 9.9 | 15.6 | 14.8 | 10.9 | 17.8 | 12.7 | 13.7 | 9.6 |
| Adjusted | n.a. | n.a. | |||||||||||
| Fifth Third Bancorp | Original | 9.6 | 6.9 | n.a. | n.a. | 6.4 | 10.8 | 10.4 | 7.5 | 14.3 | 10.5 | 9.8 | 6.8 |
| Adjusted | n.a. | n.a. | |||||||||||
| Huntington Bancshares Incorporated | Original | 10.3 | 7.9 | n.a. | n.a. | 7.6 | 11.6 | 11.2 | 8.2 | 13.7 | 10.4 | 9.8 | 7.0 |
| Adjusted | n.a. | n.a. | |||||||||||
| KeyCorp | Original | 11.3 | 8.5 | n.a. | n.a. | 8.2 | 12.0 | 11.4 | 8.5 | 14.1 | 10.4 | 11.2 | 8.0 |
| Adjusted | n.a. | n.a. | |||||||||||
| M&T Bank Corporation | Original | 9.8 | 6.9 | n.a. | n.a. | 7.0 | 12.5 | 12.0 | 8.4 | 15.4 | 10.9 | 10.6 | 6.4 |
| Adjusted | n.a. | n.a. | |||||||||||
| MUFG Americas Holdings Corporation | Original | 12.7 | 8.0 | 12.7 | n.a. | 8.0 | 12.7 | 12.0 | 8.0 | 14.6 | 10.2 | 11.4 | 7.1 |
| Adjusted | n.a. | n.a. | |||||||||||
| Regions Financial Corporation | Original | 11.8 | 6.8 | n.a. | n.a. | 7.0 | 12.7 | 12.0 | 7.6 | 15.5 | 9.7 | 11.0 | 6.4 |
| Adjusted | n.a. | n.a. | |||||||||||
| Santander Holdings USA, Inc. | Original | 11.0 | 9.4 | n.a. | n.a. | 10.3 | 13.1 | 13.1 | 10.5 | 15.0 | 12.7 | 12.3 | 9.5 |
| Adjusted | 11.0 | 9.4 | n.a. | n.a. | 10.3 | 13.1 | 13.1 | 10.6 | 15.0 | 12.7 | 12.3 | 9.5 | |
| SunTrust Banks, Inc. | Original | 9.6 | 7.3 | n.a. | n.a. | 7.2 | 10.5 | 10.5 | 8.2 | 12.3 | 10.2 | 9.5 | 6.9 |
| Adjusted | n.a. | n.a. | |||||||||||
| Zions Bancorporation | Original | 11.9 | 5.1 | n.a. | n.a. | 5.9 | 14.4 | 13.8 | 6.6 | 16.3 | 8.8 | 11.9 | 5.4 |
| Adjusted | n.a. | n.a. | |||||||||||
Note: These projections represent hypothetical estimates that involve an economic outcome that is more adverse than expected. These estimates are not forecasts of capital ratios. The table includes the minimum ratios assuming the capital actions originally submitted in January 2015 by the BHCs in their annual capital plans and the minimum ratios incorporating any adjustments to capital distributions made by BHCs after reviewing the Federal Reserve's stress test projections. The minimum capital ratios are for the period 2014:Q4 to 2016:Q4 and do not necessarily occur in the same quarter. N/a is not applicable.
Source: Federal Reserve estimates in the severely adverse scenario.
| Regulatory ratio | 2014:Q4 | 2015-16 |
|---|---|---|
| Tier 1 common ratio | 5 percent | 5 percent |
| Common equity tier 1 ratio | Not applicable | 4.5 percent |
| Tier 1 risk-based capital ratio | 4 percent | 6 percent |
| Total risk-based capital ratio | 8 percent | 8 percent |
| Tier 1 leverage ratio | 3 or 4 percent | 4 percent |
Note: For purposes of CCAR 2015, an advanced approaches BHC includes any BHC that has consolidated assets greater than or equal to $250 billion or total consolidated on-balance sheet foreign exposure of at least $10 billion as of December 31, 2014. See 12 CFR 217.100(b)(1). Other BHCs include any BHC that is subject to 12 CFR 225.8 and is not an advanced approaches BHC.
The tier 1 common ratio is calculated using the definitions of tier 1 capital and total risk-weighted assets in 12 CFR part 225, appendixes A and E. All other ratios are calculated in accordance with the transition arrangements provided in the Board's revised regulatory capital framework. See 12 CFR 217.
| Bank holding company | Capital actions | Tier 1 common ratio (%) | Common equity tier 1 ratio (%) | Tier 1 risk-based capital ratio (%) |
Total risk-based capital ratio (%) | Tier 1 leverage ratio (%) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Actual 2014:Q3 | Projected minimum | Actual 2014:Q3 | Projected 2014:Q4 | Projected 2015-16 minimum | Actual 2014:Q3 | Projected 2014:Q4 | Projected 2015-16 minimum | Actual 2014:Q3 | Projected minimum | Actual 2014:Q3 | Projected minimum | ||
| American Express Company | Original | 13.2 | 10.3 | 13.6 | 13.4 | 10.0 | 13.6 | 14.0 | 11.1 | 15.1 | 12.8 | 11.6 | 9.1 |
| Adjusted | |||||||||||||
| Bank of America Corporation | Original | 11.3 | 9.9 | 12.0 | 10.8 | 7.7 | 12.8 | 11.7 | 9.1 | 15.8 | 12.0 | 7.9 | 5.9 |
| Adjusted | |||||||||||||
| The Bank of New York Mellon Corporation | Original | 13.9 | 13.1 | 15.1 | 16.6 | 11.5 | 16.3 | 18.1 | 13.2 | 17.0 | 13.5 | 5.8 | 4.9 |
| Adjusted | |||||||||||||
| Capital One Financial Corporation | Original | 12.7 | 9.2 | 12.7 | 12.9 | 8.2 | 13.3 | 13.7 | 9.7 | 15.2 | 11.8 | 10.6 | 7.4 |
| Adjusted | |||||||||||||
| Citigroup Inc. | Original | 13.4 | 11.1 | 15.1 | 12.6 | 8.4 | 15.1 | 12.6 | 9.2 | 17.7 | 11.9 | 9.0 | 6.0 |
| Adjusted | |||||||||||||
| The Goldman Sachs Group, Inc. | Original | 15.2 | 11.4 | 15.1 | 13.3 | 8.0 | 17.0 | 15.2 | 9.5 | 19.8 | 11.2 | 9.0 | 6.7 |
| Adjusted | 15.2 | 12.1 | 15.1 | 13.3 | 8.5 | 17.0 | 15.2 | 10.0 | 19.8 | 11.8 | 9.0 | 7.1 | |
| HSBC North America Holdings Inc. | Original | 14.0 | 13.9 | 16.3 | 15.1 | 11.1 | 17.3 | 17.3 | 12.5 | 26.1 | 17.3 | 9.4 | 7.5 |
| Adjusted | |||||||||||||
| JPMorgan Chase & Co. | Original | 10.9 | 8.7 | 11.1 | 10.5 | 7.6 | 12.6 | 12.0 | 9.1 | 15.0 | 11.0 | 7.6 | 5.6 |
| Adjusted | 10.9 | 9.0 | 11.1 | 10.5 | 8.1 | 12.6 | 12.0 | 9.5 | 15.0 | 11.4 | 7.6 | 5.9 | |
| Morgan Stanley | Original | 15.0 | 11.7 | 15.2 | 13.4 | 10.2 | 17.1 | 15.1 | 11.2 | 19.8 | 12.9 | 8.2 | 6.4 |
| Adjusted | 15.0 | 11.7 | 15.2 | 13.4 | 10.2 | 17.1 | 15.1 | 11.4 | 19.8 | 13.8 | 8.2 | 6.4 | |
| Northern Trust Corporation | Original | 12.8 | 12.3 | 12.8 | 12.5 | 10.1 | 13.6 | 13.4 | 10.6 | 16.0 | 12.6 | 7.9 | 6.8 |
| Adjusted | |||||||||||||
| The PNC Financial Services Group, Inc. | Original | 11.0 | 9.8 | 11.1 | 11.1 | 8.3 | 12.8 | 12.9 | 9.5 | 16.1 | 12.2 | 11.1 | 8.3 |
| Adjusted | |||||||||||||
| State Street Corporation | Original | 13.9 | 12.6 | 15.0 | 14.5 | 7.2 | 16.7 | 17.1 | 9.3 | 19.1 | 11.1 | 6.4 | 4.5 |
| Adjusted | |||||||||||||
| U.S. Bancorp | Original | 9.5 | 9.0 | 9.7 | 9.7 | 7.9 | 11.3 | 11.4 | 9.6 | 13.6 | 11.6 | 9.4 | 7.9 |
| Adjusted | |||||||||||||
| Wells Fargo & Company | Original | 10.8 | 8.7 | 11.1 | 10.5 | 7.0 | 12.6 | 12.0 | 8.6 | 15.6 | 11.6 | 9.6 | 6.6 |
| Adjusted | |||||||||||||
Note: These projections represent hypothetical estimates that involve an economic outcome that is more adverse than expected. These estimates are not forecasts of capital ratios. The table includes the minimum ratios assuming the capital actions originally submitted in January 2015 by the BHCs in their annual capital plans and the minimum ratios incorporating any adjustments to capital distributions made by BHCs after reviewing the Federal Reserve's stress test projections. The minimum capital ratios are for the period 2014:Q4 to 2016:Q4 and do not necessarily occur in the same quarter.
Source: Federal Reserve estimates in the adverse scenario.
| Regulatory ratio | 2014:Q4 | 2015-16 |
|---|---|---|
| Tier 1 common ratio | 5 percent | 5 percent |
| Common equity tier 1 ratio | 4 percent | 4.5 percent |
| Tier 1 risk-based capital ratio | 5.5 percent | 6 percent |
| Total risk-based capital ratio | 8 percent | 8 percent |
| Tier 1 leverage ratio | 4 percent | 4 percent |
Note: For purposes of CCAR 2015, an advanced approaches BHC includes any BHC that has consolidated assets greater than or equal to $250 billion or total consolidated on-balance sheet foreign exposure of at least $10 billion as of December 31, 2014. See 12 CFR 217.100(b)(1). Other BHCs include any BHC that is subject to 12 CFR 225.8 and is not an advanced approaches BHC.
The tier 1 common ratio is calculated using the definitions of tier 1 capital and total risk-weighted assets in 12 CFR part 225, appendixes A and E. All other ratios are calculated in accordance with the transition arrangements provided in the Board's revised regulatory capital framework. See 12 CFR 217.
| Bank holding company | Capital actions | Tier 1 common ratio (%) | Common equity tier 1 ratio (%) | Tier 1 risk-based capital ratio (%) |
Total risk-based capital ratio (%) | Tier 1 leverage ratio (%) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Actual 2014:Q3 | Projected minimum | Actual 2014:Q3 | Projected 2014:Q4 | Projected 2015-16 minimum | Actual 2014:Q3 | Projected 2014:Q4 | Projected 2015-16 minimum | Actual 2014:Q3 | Projected minimum | Actual 2014:Q3 | Projected minimum | ||
| Ally Financial Inc. | Original | 9.7 | 8.7 | n.a. | n.a. | 8.6 | 12.7 | 12.4 | 9.8 | 13.5 | 11.5 | 10.9 | 8.4 |
| Adjusted | n.a. | n.a. | |||||||||||
| BB&T Corporation | Original | 10.5 | 8.5 | n.a. | n.a. | 8.7 | 12.4 | 12.3 | 10.2 | 15.2 | 12.5 | 9.7 | 7.7 |
| Adjusted | n.a. | n.a. | |||||||||||
| BBVA Compass Bancshares, Inc. | Original | 11.0 | 9.5 | n.a. | n.a. | 10.0 | 11.3 | 10.9 | 10.0 | 13.3 | 12.5 | 9.6 | 7.8 |
| Adjusted | n.a. | n.a. | |||||||||||
| BMO Financial Corp. | Original | 11.5 | 11.5 | n.a. | n.a. | 10.5 | 11.5 | 11.5 | 10.5 | 15.5 | 13.9 | 8.3 | 7.4 |
| Adjusted | n.a. | n.a. | |||||||||||
| Citizens Financial Group, Inc. | Original | 12.9 | 11.3 | n.a. | n.a. | 11.5 | 12.9 | 12.3 | 11.8 | 16.1 | 15.4 | 10.9 | 9.4 |
| Adjusted | n.a. | n.a. | |||||||||||
| Comerica Incorporated | Original | 10.6 | 9.8 | n.a. | n.a. | 9.6 | 10.6 | 10.4 | 9.6 | 12.8 | 11.6 | 10.8 | 9.6 |
| Adjusted | n.a. | n.a. | |||||||||||
| Deutsche Bank Trust Corporation | Original | 36.6 | 36.3 | n.a. | n.a. | 30.2 | 36.6 | 36.3 | 30.2 | 37.0 | 30.6 | 11.9 | 11.8 |
| Adjusted | n.a. | n.a. | |||||||||||
| Discover Financial Services | Original | 14.8 | 12.1 | n.a. | n.a. | 11.6 | 15.6 | 15.1 | 12.5 | 17.8 | 14.2 | 13.7 | 10.7 |
| Adjusted | n.a. | n.a. | |||||||||||
| Fifth Third Bancorp | Original | 9.6 | 8.7 | n.a. | n.a. | 8.3 | 10.8 | 10.6 | 9.3 | 14.3 | 11.7 | 9.8 | 8.3 |
| Adjusted | n.a. | n.a. | |||||||||||
| Huntington Bancshares Incorporated | Original | 10.3 | 8.9 | n.a. | n.a. | 8.7 | 11.6 | 11.4 | 9.4 | 13.7 | 11.3 | 9.8 | 7.8 |
| Adjusted | n.a. | n.a. | |||||||||||
| KeyCorp | Original | 11.3 | 9.9 | n.a. | n.a. | 9.6 | 12.0 | 11.6 | 9.9 | 14.1 | 11.4 | 11.2 | 9.2 |
| Adjusted | n.a. | n.a. | |||||||||||
| M&T Bank Corporation | Original | 9.8 | 9.0 | n.a. | n.a. | 9.3 | 12.5 | 12.2 | 10.6 | 15.4 | 13.0 | 10.6 | 7.9 |
| Adjusted | n.a. | n.a. | |||||||||||
| MUFG Americas Holdings Corporation | Original | 12.7 | 11.3 | 12.7 | n.a. | 11.4 | 12.7 | 12.4 | 11.4 | 14.6 | 13.3 | 11.4 | 9.8 |
| Adjusted | n.a. | n.a. | |||||||||||
| Regions Financial Corporation | Original | 11.8 | 9.3 | n.a. | n.a. | 9.3 | 12.7 | 12.2 | 10.0 | 15.5 | 12.2 | 11.0 | 8.3 |
| Adjusted | n.a. | n.a. | |||||||||||
| Santander Holdings USA, Inc. | Original | 11.0 | 11.5 | n.a. | n.a. | 12.2 | 13.1 | 13.7 | 13.0 | 15.0 | 15.2 | 12.3 | 11.5 |
| Adjusted | 11.0 | 11.5 | n.a. | n.a. | 12.2 | 13.1 | 13.7 | 13.0 | 15.0 | 15.2 | 12.3 | 11.5 | |
| SunTrust Banks, Inc. | Original | 9.6 | 9.0 | n.a. | n.a. | 9.2 | 10.5 | 10.7 | 10.0 | 12.3 | 11.9 | 9.5 | 8.4 |
| Adjusted | n.a. | n.a. | |||||||||||
| Zions Bancorporation | Original | 11.9 | 10.4 | n.a. | n.a. | 10.2 | 14.4 | 14.1 | 11.7 | 16.3 | 13.7 | 11.9 | 9.3 |
| Adjusted | n.a. | n.a. | |||||||||||
Note: These projections represent hypothetical estimates that involve an economic outcome that is more adverse than expected. These estimates are not forecasts of capital ratios. The table includes the minimum ratios assuming the capital actions originally submitted in January 2015 by the BHCs in their annual capital plans and the minimum ratios incorporating any adjustments to capital distributions made by BHCs after reviewing the Federal Reserve's stress test projections. The minimum capital ratios are for the period 2014:Q4 to 2016:Q4 and do not necessarily occur in the same quarter. N/a is not applicable.
Source: Federal Reserve estimates in the adverse scenario.
| Regulatory ratio | 2014:Q4 | 2015-16 |
|---|---|---|
| Tier 1 common ratio | 5 percent | 5 percent |
| Common equity tier 1 ratio | Not applicable | 4.5 percent |
| Tier 1 risk-based capital ratio | 4 percent | 6 percent |
| Total risk-based capital ratio | 8 percent | 8 percent |
| Tier 1 leverage ratio | 3 or 4 percent | 4 percent |
Note: For purposes of CCAR 2015, an advanced approaches BHC includes any BHC that has consolidated assets greater than or equal to $250 billion or total consolidated on-balance sheet foreign exposure of at least $10 billion as of December 31, 2014. See 12 CFR 217.100(b)(1). Other BHCs include any BHC that is subject to 12 CFR 225.8 and is not an advanced approaches BHC.
The tier 1 common ratio is calculated using the definitions of tier 1 capital and total risk-weighted assets in 12 CFR part 225, appendixes A and E. All other ratios are calculated in accordance with the transition arrangements provided in the Board's revised regulatory capital framework. See 12 CFR 217.
References
17. See 12 CFR 225.8(f)(2)(iv). Return to text
18. See 12 CFR 225.8(e)(4). Return to text
