JPMorgan Chase (NYSE: JPM) reported third-quarter 2026 net income of $15.3 bn, an increase of 6% from a year earlier, as stronger investment banking activity, equities trading and consumer lending supported revenue growth across its main businesses.
Diluted earnings per share increased 10% to $5.57, compared with $5.07 in the third quarter of 2025. Reported revenue rose 8% to $50.2 bn, while revenue on a managed basis reached $50.9 bn, also up 8%.
- JPMorgan Chase reported Q3 2026 net income of $15.3 bn, up 6% year over year, with diluted earnings per share increasing 10% to $5.57. Excluding investment securities losses, net income reached $15.8 bn.
- Managed revenue increased 8% to $50.9 bn, supported by 49% growth in equities trading revenue, higher investment banking fees and continued expansion in consumer banking.
- The bank maintained a 13.9% standardized CET1 capital ratio, returned approximately $5.1 bn through dividends and net share repurchases, and reported $5.2 trillion in assets under management.
The Firm reported another quarter of strong results, generating net income of $15.8 bn and an ROTCE of 21%, excluding discretionary investment securities losses totaling $498 mn after tax.
Jamie Dimon, JPMorgan Chase’s chairman and CEO
The results included $658 mn in investment securities losses, equivalent to $498 mn after tax. Excluding this item, net income was $15.8 bn, diluted EPS reached $5.75 and return on tangible common equity (ROTCE) was 21%, compared with the reported 20%.
JPMorgan’s investment banking and trading revenue increase
The Commercial & Investment Bank generated revenue of $22.7 bn, increasing 14% year over year, while net income climbed 20% to $8.2 bn.
Investment banking fees rose 14% to $3 bn, primarily reflecting stronger advisory activity. JPMorgan retained its leading position in global investment banking fees, with a 9.2% market share for the year through September.
Markets revenue increased 15% to $10.3 bn, although performance differed considerably between asset classes.
Equities trading revenue surged 49% to $5 bn, supported by prime brokerage and derivatives activity. Fixed-income markets revenue declined 4% to $5.4 bn, reflecting weaker results across commodities, rates, credit and public finance.
Payments revenue grew 14% to $5.6 bn, supported by higher deposit balances, improved deposit margins and fee income.
The bank’s Consumer & Community Banking division reported revenue of $21.2 bn, up 9%, and net income of $5.7 bn, increasing 13%.
Card Services and Auto revenue advanced 15% to $8.3 bn. Debit and credit card purchase volumes increased 10%, while the number of active mobile customers grew 7%.
JPMorgan also added more than 650,000 net new checking accounts during the quarter.
JPMorgan assets under management reach $5.2 tn
Asset & Wealth Management revenue increased 14% to $6.9 bn, reflecting higher management fees, increased lending activity and continued client inflows. Net income in the division rose 11% to $1.8 bn.
Assets under management reached $5.2 trillion, up 13% year over year, while total client assets increased 15% to $7.9 trillion. The business recorded $263 bn in net client asset inflows, contributing to its expansion alongside higher market valuations.
Across JPMorgan, average loans increased 10% year over year to approximately $1.6 trillion, while average deposits rose 8%. Net interest income reached $27.1 bn, increasing 13%, supported by higher lending balances and deposit growth.
The bank’s noninterest expenses increased 12% to $27.3 bn, exceeding its 8% managed revenue growth. Higher employee compensation, brokerage costs, technology spending and marketing expenses contributed to the increase.
Credit costs totaled $2.7 bn, compared with $3.4 bn a year earlier. Net charge-offs declined to $2.2 bn, while the bank recorded a $539 mn reserve build, primarily in wholesale lending.
JPMorgan maintains strong capital and liquidity ratios
JPMorgan ended September with a standardized Common Equity Tier 1 (CET1) capital ratio of 13.9% and an advanced approaches ratio of 14.1%.
CET1 capital stood at approximately $304 bn, with total loss-absorbing capacity of $599 bn. The bank also held $1.5 trillion in cash and marketable securities.
Book value per share increased 6% year over year to $132.30, while tangible book value per share rose 7% to $112.64.
Capital distributions included $4.4 bn in common dividends, equivalent to $1.65 per share, and $664 mn in net common share repurchases.
Dimon said the bank deliberately reduced buybacks during the quarter, prioritizing investment in its businesses and opportunities to deploy capital at attractive returns.
Despite the bank’s financial performance, management remains cautious about the economic outlook.
Dimon cited substantial fiscal deficits, persistent inflation, elevated asset valuations, rising interest rates and geopolitical uncertainty as factors that could affect economic conditions.
“The U.S. economy continued to be fueled by strong business investment and ongoing consumer spending,” he said, warning that underlying economic and financial pressures require preparation for different scenarios.
JPMorgan’s third-quarter performance showed continued growth in lending, payments and wealth management, although higher operating expenses and uneven trading results remain important considerations for future profitability.
Consumer banking and interest income support profitability
JPMorgan’s consumer banking operations provided a more stable source of earnings. Consumer and Community Banking revenue increased 9% to $21.2 bn, while net income rose 13% to $5.7 bn. Average loans across the group increased 10% year over year, and average deposits rose 8%.
Net interest income excluding Markets, which measures the difference between interest earned and interest paid outside trading operations, increased 6% to $24.7 bn.
JPMorgan raised its full-year 2026 net interest income forecast to approximately $106.2 bn, compared with its previous projection of $105.5 bn.
Excluding Markets, the bank now expects $97.2 bn, up from $96.5 bn. Its preliminary forecast for 2027 net interest income excluding Markets stands at approximately $107 bn.
The bank’s Asset and Wealth Management division also reported growth, with revenue increasing 14% to $6.9 bn. Assets under management reached $5.2 trillion, up 13% year over year.
Higher expenses and interest rates remain risks
JPMorgan increased its annual adjusted expense forecast to approximately $108.6 bn from $107.5 bn.
Third-quarter noninterest expenses totaled $27.3 bn, rising 12% year over year, driven by higher compensation, marketing, brokerage and technology costs.
Analysts attributed part of the expense increase to stronger-than-expected revenue generation. Credit costs totaled $2.7 bn, including $2.2 bn in net charge-offs and a $539 mn addition to reserves.
The bank maintained a standardized common equity Tier 1 capital ratio of 13.9%, reflecting its capital position against risk-weighted assets.
JPMorgan’s outlook comes after the Federal Reserve raised interest rates in September for the first time since 2023. Higher rates can support lending margins but may also increase funding costs, weaken borrowing demand and discourage corporate transactions.
JPMorgan also continues evaluating artificial intelligence applications across its operations. Barnum said the bank’s direct exposure to AI-related lending remains modest relative to its overall wholesale portfolio, although a major deterioration in investor sentiment could still affect its business.
The bank’s revised interest income guidance and continued loan growth provide support for its earnings outlook. The principal questions for the coming quarters are whether capital markets activity recovers, investment banking transactions proceed as expected and revenue growth remains sufficient to offset rising operating expenses.
