JPMorgan Chase & Co. Q3 Earnings Call Highlights

Key Points

• JPMorgan reported strong third-quarter results, with net income of $15.3 billion, revenue up 8% year over year to $50.9 billion, and a 20% return on tangible common equity. Consumer banking, investment banking, markets and asset management all contributed to growth.
• Consumer and wealth-management trends remained robust: card spending increased 10%, deposits rose 4%, client investment assets exceeded $1.4 trillion, and assets under management climbed 13% to $5.2 trillion.
• Management expects approximately $28 billion in fourth-quarter total net interest income but is becoming more selective on credit underwriting. JPMorgan also reduced share repurchases to prioritize organic growth, while monitoring risks from high interest rates, AI-related financing and market volatility.

JPMorgan Chase & Co. NYSE: JPM reported third-quarter 2026 net income of $15.3 billion, or $5.57 per share, with a return on tangible common equity of 20%, as strength in consumer banking, investment banking and asset management helped lift revenue.

Revenue rose 8% from a year earlier to $50.9 billion. Excluding $658 million of net investment securities losses in the Corporate segment, revenue increased 9%, Chief Financial Officer Jeremy Barnum said. The growth was driven primarily by markets revenue, higher deposit balances and increased asset management fees.

Expenses increased 12% year over year to $27.3 billion, reflecting higher volume- and revenue-related costs, front-office hiring and wage inflation. Credit costs totaled $2.7 billion, including $2.2 billion in net charge-offs and a $539 million net reserve build.

Business Results and Consumer Trends

The Consumer & Community Banking division earned $5.7 billion, while revenue increased 9% to $21.2 billion. Barnum cited higher card balances and yields, asset management fees, deposit balances and auto lease income as key contributors.

Debit and credit card spending grew 10% from a year earlier, with momentum across categories including gas and travel. Consumer and business banking deposit balances rose 4%, and the company retained its top position in retail deposit share based on FDIC data, Barnum said.

Client investment assets surpassed $1.4 trillion, up 15% from a year earlier, supported by market performance and net inflows. JPMorgan added about 650,000 net new checking accounts during the quarter, according to Barnum.

Management said the consumer remains healthy, primarily because of a healthy labor market, though it acknowledged that persistently high real interest rates could eventually slow activity and weaken consumer credit performance if they lead to higher unemployment.

“The consumer is currently very healthy,” Barnum said, while adding that an extended period of aggressive monetary tightening “almost by definition” would result in weaker consumer credit outcomes.

Investment Banking, Markets and Asset Management

The Corporate & Investment Bank generated net income of $8.2 billion, with revenue up 14% to $22.7 billion. Investment banking fees rose 14%, led by advisory activity. Barnum said the outlook remained constructive because of client engagement, although evolving market conditions had recently slowed activity.

Fixed-income markets revenue fell 4% from a year earlier, as lower results in commodities, rates and credit were largely offset by stronger client flows in currencies and emerging markets. Equities revenue climbed 49%, reflecting continued strength in prime services and derivatives.

Asset & Wealth Management reported net income of $1.8 billion and a pretax margin of 36%. Revenue rose 14% to $6.9 billion, driven by management fees tied to higher average market levels and net inflows, as well as higher loan balances.

Long-term net inflows totaled $51 billion, with fixed income a major contributor. Assets under management rose 13% to $5.2 trillion, while client assets increased 15% to $7.9 trillion.

The Corporate segment posted a net loss of $455 million on revenue of $93 million, including the investment securities losses.

Outlook, Capital Deployment and Credit Discipline

For the fourth quarter, JPMorgan expects net interest income excluding markets of about $25.5 billion and total net interest income of about $28 billion. The company also provided a central-case estimate for 2027 net interest income excluding markets of approximately $107 billion.

Barnum said roughly one-quarter of the implied growth from the annualized fourth-quarter run rate to the 2027 outlook reflected the yield curve and expected rate increases embedded in forward markets. The rest reflects continued balance-sheet growth and mix trends, including consumer and wholesale deposits and card lending.

The bank expects fourth-quarter expenses of about $27.5 billion and continues to expect a card net charge-off rate of approximately 3.2%.

Its standardized CET1 capital ratio ended the quarter at 13.9%, down 30 basis points from the prior quarter. The decline reflected accumulated other comprehensive income losses, higher risk-weighted assets and capital distributions, which more than offset net income. Risk-weighted assets increased about $52 billion, mainly because of lending growth across banking, markets and asset and wealth management, along with higher energy prices and market volatility.

Chief Executive Officer Jamie Dimon said the bank has roughly $30 billion of excess capital by its estimate, but reduced share repurchases because management believes it can deploy capital at attractive returns through organic growth opportunities. He pointed to the company’s Security and Resiliency Initiative, which he said is expected to deploy $1.5 trillion over 10 years and had already generated more than $200 billion of activity in its first year.

Dimon also said JPMorgan is becoming more selective in credit underwriting. “We are tightening up a little bit on credit,” he said, citing looser terms, weaker covenants and other aggressive lending practices in parts of the market.

AI, Deposits and Market Risks

Management discussed the potential impact of artificial intelligence agents on banking, deposits and customer security. Barnum said personal financial agents represent an intersection of existing competition for yield-seeking deposits and competition from financial technology companies, rather than an entirely new dynamic.

Dimon said the company is using AI tools internally and intends to use them for customers, but emphasized the need to prevent rogue agents and protect client data and assets. He said JPMorgan will not allow outside agents unrestricted access inside the company because of the risks involved.

Barnum said the bank’s AI spending had previously been described too broadly and was about $700 million annually at the time of a prior disclosure. He said it is increasingly difficult to isolate AI spending because the technology has become embedded throughout the organization. While AI-related productivity gains are not yet visible in quarterly earnings, he said the company is seeing promising use cases, including software development and legacy-tool modernization.

On the macroeconomic outlook, Dimon said the bank prepares for a range of scenarios, including the possibility of higher long-term rates, but does not predict them. He said elevated rates could result from strong demand for capital and productivity, persistent inflation or developments abroad.

Management also said it is monitoring the rapid expansion of AI-related capital spending and financing needs. Barnum said JPMorgan’s direct exposures remain modest relative to its overall wholesale portfolio, but stressed that the firm is evaluating both individual borrower concentrations and broader risks from a major shift in sentiment around the AI theme.

About JPMorgan Chase & Co. (NYSE:JPM)

JPMorgan Chase & Co is a global financial services company headquartered in New York City. Through its businesses, the company provides banking, investment banking, asset management, private banking, commercial banking, consumer lending and payment services to individuals, businesses, institutions and governments.

The company operates through major business areas that include Consumer & Community Banking, Commercial & Investment Banking, and Asset & Wealth Management. Its products and services include deposit accounts, credit cards, mortgages, auto loans, business financing, investment and advisory services, securities trading and custody, payment processing, and wealth-management solutions.

JPMorgan Chase serves customers in the United States and maintains operations and client relationships across international markets.

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