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Key Rating Drivers Ratings Affirmed; Outlook Remains Stable: On September 19, 2022, ���������ֳ� affirmed the ratings of JPMorgan Chase & Co. (JPM) and maintained the Rating Outlook at Stable. The rating affirmation reflects the strength and stability of JPM's financial performance through multiple cycles, its proven ability to build capital and liquidity to meet more strenuous regulatory requirements and the diversity of its overall business model. Earnings Strong Despite Higher Expenses: The firm's operating profit to risk-weighted assets ratio for full year 2021 and the first half of 2022 was 3.6% and 2.5%, respectively, which compares favorably to peer banks despite higher revenue volatility and upward pressure on expenses. Management has projected operating expense of $77 billion in 2022, or an increase of roughly 8.5% over 2021, driven in part by inflationary pressures, but also by long-term investments in technology, marketing, and product/service distribution, which ���������ֳ� views favorably to the extent these investments further enhance the strength of its franchise and business model. Regulatory Capital on the Rise: Although its common equity Tier 1 ratio (CET1) declined to 12.2% from 13% a year ago, ���������ֳ� views JPM as strongly capitalized relative to its risk profile. To ensure its CET1 ratio rises above its 12.5% regulatory requirement by 1Q23 driven by a higher stress capital buffer (SCB) and Globally Systemically Important Bank (GSIB) surcharges that begin in 1Q23, JPM temporarily paused share repurchases beginning in July 2022.