JPMorgan rides trading and dealmaking boom to positive Q3 earnings report

JPMorgan crushed Wall Street forecasts in its third-quarter earnings report on Tuesday, with profit and revenue surging far beyond expectations as trading and investment banking brought in literally over $700 million more than analysts predicted.

In the earnings report, JPMorgan said its net income climbed 12% from a year earlier to $14.39 billion, equal to $5.07 per share, beating the $4.84 per-share forecast from LSEG. The bank’s revenue surged by 9% to $47.12 billion, roughly adding $700 million above estimates.

So far this year, major U.S. lenders have benefited from President Donald Trump’s economic agenda, while lighter oversight of mergers and capital requirements has boosted dealmaking.

Stock indexes S&P, the Dow, and Nasdaq have made over a dozen all-time highs this year too, which lifted wealth-management units at banks like JPMorgan, giving them a tailwind from client gains in risk assets, according to the report.

Trading desks and investment bankers fuel a $700 million surprise

JPMorgan’s CEO Jamie Dimon said each major business line delivered strong results but warned that the economy faced growing uncertainty. “While there have been some signs of a softening, particularly in job growth, the U.S. economy generally remained resilient,” he said in the earnings report. “However, there continues to be a heightened degree of uncertainty stemming from complex geopolitical conditions, tariffs and trade uncertainty, elevated asset prices and the risk of sticky inflation.”

Jamie added that the corporate and investment bank saw fees rise 16% as equity-capital-markets and M&A activity picked up amid favorable market conditions.

The markets division brought in a record $8.9 billion in quarterly revenue, up 25% year over year, driven by higher client activity and demand for financing. In consumer banking, JPMorgan ranked #1 in U.S. retail deposits for the fifth consecutive year and added over 400,000 new checking accounts in the quarter, according to Jamie.

Wealth management posted another milestone with 43,000 first-time investors, while JPMorgan’s asset and wealth management division reported $6 billion in revenue and $109 billion in net inflows.

Jamie told employees and shareholders that: “I want to thank our exceptional employees across the globe. Their passion and dedication set us apart and enable us to be trusted partners for our clients and communities, including consumers, small and large-sized businesses, schools, cities, states and countries.”

Costs climb, loan-loss reserves grow, but profits keep rising

JPMorgan’s net interest income hit $24.1 billion, up 2%, helped by larger revolving balances in card services and higher wholesale deposits. Excluding the markets division, it stood at $23.4 billion, roughly unchanged from last year, as lower interest rates and thinner deposit margins offset some gains.

Non-interest revenue totaled $23 billion, a 16% increase, lifted by higher asset-management fees, stronger investment-banking results, auto lease income, and payments growth, according to the report.

Expenses rose as well. Non-interest expense reached $24.3 billion, up 8%, reflecting higher pay, a larger front-office workforce, more brokerage and distribution costs, steeper auto lease depreciation, and heavier marketing spending. Those were partially balanced by lower legal costs.

JPMorgan also increased its cushion for potential loan losses. The provision for credit losses stood at $3.4 billion, compared with $3.1 billion last year. Net charge-offs climbed by $506 million to $2.6 billion, led by the wholesale and credit-card units. The firm added $810 million in reserves, including $608 million in consumer lending and $205 million in wholesale.

In the same quarter last year, the reserve build was $1 billion, with charge-offs at $2.1 billion.

Across the broader industry, large banks have widened their lead over smaller lenders. The KBW Bank Index is up nearly 15% this year, while the KBW Regional Banking Index has slipped about 1%. Goldman Sachs, Citigroup, and Wells Fargo also reported on Tuesday, with Bank of America and Morgan Stanley set to follow Wednesday.

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