JPMorgan Q3 2026 Profit Rises 6% on Equities and Banking Growth

JPMorgan Chase & Co. (NYSE: JPM) reported third-quarter 2026 net income of $15.3 billion, up 6% from a year earlier, as stronger investment banking, equities trading and consumer revenue outweighed higher expenses and a $658 million loss on investment securities. Diluted earnings per share increased by $0.50 year over year to $5.57.

Excluding the securities loss, the bank said net income was $15.8 billion, EPS was $5.75 and return on tangible common equity was 21%, compared with reported ROTCE of 20%.

Managed revenue rose 8% year over year to $50.9 billion. Net interest income increased 13% to $27.1 billion, while noninterest revenue gained 3% to $23.8 billion. Net interest income excluding Markets rose 6% to $24.7 billion, supported by higher deposits, Card Services balances and wholesale loans, partly offset by lower rates.

Markets revenue climbed 15% to $10.3 billion, led by equities. Noninterest revenue excluding Markets increased 7% to $15.9 billion, or 12% when the securities loss was also excluded, reflecting higher asset-management and investment-banking fees, card income and auto operating-lease income. Those gains were partly offset by losses on certain equity investments.

Expenses rose 12% to $27.3 billion, faster than revenue, as compensation, front-office staffing, brokerage and distribution costs, marketing and technology spending increased. The managed overhead ratio was 54%, compared with 52% a year earlier. Adjusted expense, which excludes firmwide legal costs, was $27.2 billion.

Credit costs totaled $2.7 billion, down from $3.4 billion a year earlier. Net charge-offs declined by $389 million to $2.2 billion, while the bank recorded a $539 million net reserve build.

Investment bank and equities lead business growth

Commercial & Investment Bank net income rose 20% to $8.2 billion as revenue advanced 14% to $22.7 billion. Investment-banking revenue increased 15% to $3.1 billion, largely on higher advisory fees, while Payments revenue rose 14% to $5.6 billion on deposit growth, a higher deposit margin and fee growth.

Markets revenue increased 15%. Equity Markets revenue surged 49% to $5.0 billion, with strength across products, particularly Prime and Derivatives. Fixed Income Markets revenue fell 4% to $5.4 billion as weakness in Commodities, Rates, Credit and Public Finance was largely offset by higher Currencies & Emerging Markets revenue.

The division’s expenses rose 11% to $10.8 billion, primarily because of higher brokerage and compensation costs. Credit costs were $663 million, including a $452 million reserve build, reflecting net lending activity and changes in the credit quality of certain exposures.

Consumer & Community Banking earned $5.7 billion, up 13%, on a 9% revenue increase to $21.2 billion. Growth reflected higher Card Services balances and net yield, asset-management fees, deposits and auto operating-lease income. Average loans rose 2% year over year, active mobile customers increased 7% to 64.9 million, and debit and credit card sales volume grew 10% to $539.5 billion.

The consumer division’s expenses increased 12% to $11.6 billion amid higher marketing, technology, compensation and auto lease-depreciation costs. Credit costs were $2.0 billion, with net charge-offs broadly unchanged at about $2.0 billion. The Card Services net charge-off rate was 2.91%, compared with 3.15% a year earlier.

Asset & Wealth Management net income increased 11% to $1.8 billion, while revenue rose 14% to $6.9 billion. Higher average market levels, net inflows and loan balances supported management-fee growth. Assets under management reached $5.2 trillion, up 13%, and client assets rose 15% to $7.9 trillion. The quarter included $51 billion of long-term net inflows and $42 billion of liquidity net inflows.

Corporate recorded a $455 million net loss, compared with net income of $825 million a year earlier. Revenue declined by $1.6 billion to $93 million, reflecting lower net interest income and the $658 million of net investment-securities losses, versus $105 million of net gains in the prior-year quarter.

Balance sheet expands as capital ratio declines

Average loans increased 10% year over year and 2% sequentially to $1.6 trillion, while average deposits rose 8% from a year earlier and 2% from the second quarter to $2.7 trillion. The bank reported $304 billion of estimated CET1 capital and $1.5 trillion of cash and marketable securities.

The estimated standardized CET1 ratio was 13.9%, down from 14.2% in the second quarter and 14.8% a year earlier, as standardized risk-weighted assets increased to $2.18 trillion. The advanced CET1 ratio was 14.1%. JPMorgan also reported $599 billion of estimated total loss-absorbing capacity.

The company distributed a $4.4 billion common dividend, equal to $1.65 per share, and completed $664 million of net common-stock repurchases. Its trailing-12-month net payout ratio was 61%.

Outlook

For the fourth quarter, management expects net interest income excluding Markets of about $25.5 billion and total net interest income of approximately $28 billion, subject to market conditions. That implies full-year 2026 totals of about $97.2 billion and $106.2 billion, respectively. Adjusted expense is expected to be approximately $27.5 billion in the fourth quarter and $108.6 billion for the full year.

The bank’s preliminary 2027 central-case analysis calls for net interest income excluding Markets of about $107 billion, with growth attributed to balance-sheet expansion and higher rates. JPMorgan expects the 2026 Card Services net charge-off rate to be approximately 3.2%.

The outlook remains subject to market conditions and other significant risks and uncertainties. Current results also show pressure from higher operating costs, lower rates in parts of the business and changes in the credit quality of certain wholesale exposures.