June 27 (Reuters) - Big U.S. banks had enough capital to
weather a potentially severe economic downturn but some of their
risky businesses could hypothetically take a major hit this
year, according to results of the Federal Reserve's annual
stress test.
    The 31 banks that participated showed they could withstand a
spike in joblessness and stresses in the commercial real estate
market and still have enough capital available to lend.
    Their common equity tier 1 (CET1) ratio, a metric that
gauges high-quality capital, will dip to 9.9% at its lowest,
still far ahead of the 4.5% minimum requirement.
    Here is how some of the biggest U.S. banks fared in the
test:
       
             Bank                     Minimum
                          common equity tier 1
                          (CET1) ratio 
                          
 JPMorgan Chase           12.5%
 Bank of America          9.1%
 Wells Fargo              8.1%
 Citigroup                9.7%
 Goldman Sachs            8.5%
 Morgan Stanley           10.6%
 
    The Fed also projected losses on loans could reach up to
$571 billion under its severely adverse scenario. Credit card
loans could be tricky, the central bank said.
    The corporate credit portfolios of banks have also shifted
towards riskier loans. They now hold a larger share of
non-investment grade corporate credit, which are over three
times more likely to default than investment grade ones, the Fed
said.
    Here are the banks with the steepest potential loan losses,
according to the central bank:      
    
    COMMERCIAL AND INDUSTRIAL LOANS - 
             Bank              
                               Projected losses
                               (as % of average
                               loan balances)
                               
 Discover Financial            21.8%
 Barclays US                   19.3%
 Goldman Sachs                 16.2%
 
    CREDIT CARDS -  
             Bank            
                             Projected losses (as
                             % of average loan
                             balances)
                             
 Ally Financial              40.6%
 Goldman Sachs               25.4%
 Capital One                 23.2%
 
        COMMERCIAL REAL ESTATE LOANS - 
  
             Bank                        Projected loan
                             losses (as % of average
                             loan balances)
                             
 Goldman Sachs               15.9%
 Royal Bank of Canada USA    15.8%
                             
 Capital One                 14.6%
 
 (Reporting by Niket Nishant in Bengaluru; Editing by Devika
Syamnath)