...Dominant Domestic Franchise: JPMorgan Chase & Co.'s (JPM) solid domestic franchise, growing international business, demonstrated capital-generation capacity, and improved capitalization and liquidity ratios underpin the ratings. The firm maintains a leading position in its businesses, particularly in commercial and investment banking. G-SIB Surcharge Reduction: In 2015, JPM reduced its estimated G-SIB surcharge by 100 bps to 3.5%, given an approximate $200bn decline in non-operating deposits, a $22bn reduction in level 3 assets, and a $15tn decline in notional derivative amounts. Fitch views this meaningful reduction favorably, as it puts the firm on more equal footing with the peer group. The CET1 ratio was 11.7% at 1Q16, which is above the firm's target of 11%-plus. Record Earnings in 2015: Improved cost efficiencies and flat litigation costs offset higher provision expenses and reduced revenue in mortgage and investment banking in 2015. In 2016, credit costs are expected to rise and...
