JPMorgan Chase & Co. Q2 Earnings Call Highlights

Key Points

• JPMorgan posted strong Q2 2026 results, with net income of $16.9 billion, EPS of $6.14 and a 23% return on tangible common equity. Revenue rose 15% year over year excluding significant items, while expenses also climbed 15% and credit costs totaled $2.5 billion.
• Trading and investment banking were standout drivers in the Corporate & Investment Bank, which earned $9.7 billion on revenue of $24.9 billion, up 27% from a year earlier. Equities revenue surged 86% and investment banking fees jumped 30%, supported by stronger deal activity and robust market conditions.
• Management raised full-year guidance for net interest income and expenses, now expecting about $105.5 billion in total NII and $107.5 billion in adjusted expenses for 2026. The bank also lowered its expected card net charge-off rate to about 3.2% and signaled a dividend increase to $1.65 per share starting in Q3.

JPMorgan Chase & Co. NYSE: JPM reported second-quarter 2026 net income of $16.9 billion, earnings per share of $6.14 and a return on tangible common equity of 23%, Chief Financial Officer Jeremy Barnum said on the bank’s earnings call.

Excluding significant items noted in the company’s presentation, Barnum said revenue rose 15% from a year earlier, driven mainly by markets revenue, higher asset management fees in Asset & Wealth Management and Consumer & Community Banking, stronger investment banking revenue, and higher deposit and loan balances. Those gains were partially offset by the impact of lower rates.

Expenses increased 15% year over year to $27.3 billion, which Barnum attributed largely to volume- and revenue-related costs, front-office hiring and labor inflation. Credit costs totaled $2.5 billion, including $2.4 billion of net charge-offs and a $149 million net reserve build.

The bank ended the quarter with a standardized CET1 capital ratio of 14.1%, down 20 basis points from the prior quarter. Barnum said net income was more than offset by higher risk-weighted assets and capital distributions. The company’s board intends to raise the quarterly dividend to $1.65 per share beginning in the third quarter, according to Barnum.

Markets and investment banking drive CIB results

The Corporate & Investment Bank reported net income of $9.7 billion on revenue of $24.9 billion, up 27% from a year earlier. Investment banking fees rose 30%, with double-digit growth across all products and particularly strong equity underwriting performance.

Barnum said the quarter benefited from some large equity capital markets deals and an acceleration in the closing of certain mergers and acquisitions transactions. Still, he said the pipeline “remains quite robust” and that current activity levels appear to be encouraging more activity, while noting that conversion will depend on market conditions.

Markets revenue was led by an exceptionally strong equities performance, with equities revenue up 86% year over year. Barnum said the business saw strength across products and regions, with strong flows and favorable trading in both derivatives and cash. Prime brokerage benefited from higher client activity and balances. Fixed income revenue rose 6%, helped by credit, currencies in emerging markets and rates, partly offset by lower commodities revenue.

Asked about sustainability, Barnum said investment banking fees were not at “super peak” levels by historical standards, though some activity was pulled forward. On equities, he said the specific combination of market events in the quarter would be “a little bit hard to imagine” repeating, while still describing the broader environment as supportive.

Consumer business shows resilience

Consumer & Community Banking reported net income of $5.3 billion on revenue of $20.3 billion, up 8% from a year earlier. Barnum said the increase was primarily driven by higher card net interest income on higher revolving balances, higher auto operating lease income and higher wealth management asset management fees.

Barnum said consumers and small businesses continued to show resilience despite elevated gas prices and inflation. He cited higher tax refunds and a solid labor market as contributors to strong spending growth.

Average deposits in banking and wealth management rose 3% year over year and 2% sequentially, supported by more than 500,000 net new checking accounts during the quarter. Client investment assets increased 21% from a year earlier, reflecting market performance and strong flows. Barnum also noted that JPMorgan refreshed its Sapphire Preferred card in June following other product refreshes over the past year.

Asset and wealth management assets climb

Asset & Wealth Management reported net income of $2 billion and a pre-tax margin of 38%. Revenue rose 19% year over year to $6.9 billion, reflecting higher management fees from market levels and net inflows, investment valuation gains, higher loan balances and increased brokerage activity.

Long-term net inflows totaled $50 billion, with strength in fixed income and equity. Assets under management reached $5.1 trillion, up 18% from a year earlier, while client assets rose 19% to $7.7 trillion.

Outlook raised for net interest income and expenses

For full-year 2026, JPMorgan now expects net interest income excluding Markets to be about $96.5 billion and total net interest income of approximately $105.5 billion, with Markets net interest income expected to rise to about $9 billion. Barnum said the upward revision to NII ex-Markets was driven primarily by deposit balances across wholesale and consumer, along with higher rates.

The bank also raised its adjusted expense outlook to about $107.5 billion. Barnum said the increase was primarily tied to higher volume- and revenue-related expenses stemming from stronger activity and revenue outperformance. He said $1.5 billion of additional expenses tied to first-half capital markets outperformance had already been booked, with another $1 billion implicitly added for the second half.

JPMorgan also lowered its expected card net charge-off rate to approximately 3.2%, reflecting better-than-expected consumer credit performance.

Dimon addresses succession, AI, capital and regulation

Chairman and Chief Executive Jamie Dimon addressed recent management changes, saying the board’s decision to name Doug and Troy as co-presidents was intended to prepare them to do more at the company. Dimon said the move did not change the timetable for his tenure, adding that timing remains up to the board.

Asked what qualities JPMorgan seeks in a future CEO, Dimon cited management skill, analytical ability, attention to detail, cultural leadership, curiosity, grit, work ethic and the ability to engage with employees, CEOs and government leaders. He said the company has “a lot of people who are great culture carriers.”

Dimon also discussed artificial intelligence, saying JPMorgan is using AI to improve service for clients and expects “huge efficiency” in some parts of the company. He said the bank has nearly 1,000 AI use cases, with about 50 viewed as especially important across areas including risk, fraud, marketing, hedging, prospecting, note-taking, idea generation and document reading. However, he cautioned that in a competitive market, the benefits of AI ultimately accrue to customers rather than simply expanding the bank’s margins.

On capital, Dimon said the bank’s goal is to deploy capital organically at a 17% return, while remaining open-minded about inorganic opportunities. He said JPMorgan has “huge opportunities” for organic growth across its businesses and reiterated that buybacks are an investment decision rather than simply a return of money to shareholders.

Dimon also criticized aspects of bank regulation, arguing that regulators should “do the numbers the right way” and address what he described as double counts in operating risk and market risk capital, as well as issues related to the G-SIB surcharge and short-term wholesale funding. Barnum added that certain proposed changes could disproportionately burden banks with both markets and traditional consumer businesses.

About JPMorgan Chase & Co. NYSE: JPM

JPMorgan Chase & Co NYSE: JPM is a diversified global financial services firm headquartered in New York City. The company provides a wide range of banking and financial products and services to consumers, small businesses, corporations, governments and institutional investors worldwide. Its operations span retail banking, commercial lending, investment banking, asset management, payments and card services, and treasury and securities services.

The firm's principal business activities are organized across several core lines: Consumer & Community Banking, which offers deposit accounts, mortgages, auto loans, credit cards and branch and digital banking under the Chase brand; Corporate & Investment Banking, which provides capital markets, advisory, underwriting, trading and risk management services; Commercial Banking, delivering lending, treasury and capital solutions to middle-market and corporate clients; and Asset & Wealth Management, which offers investment management, private banking and retirement services to institutions and high-net-worth individuals.

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