JPMorgan profit rises to $15.3 billion, adjusted earnings per share miss estimates
Key Facts
JPMorgan Chase's net income rose to $15.3 billion in the third quarter of 2026, according to its filing with the U.S. Securities and Exchange Commission, but adjusted earnings per share fell short of analysts' expectations. Profit in the same period a year earlier was $14.4 billion. Reported earnings per share increased to $5.57 from $5.07 a year earlier. Excluding net investment securities losses, adjusted earnings per share were $5.75. That was $0.19 below estimates, according to Seeking Alpha, despite the increase in reported profit from the year-earlier quarter.
The bank reported quarterly revenue of $50.2 billion in its earnings release, while revenue on a non-GAAP managed basis was $50.9 billion. According to Seeking Alpha, managed revenue rose 8.1% year on year but missed analysts' estimates by $320 million. Corporate segment results included net investment securities losses of $658 million. On its earnings call, the bank said expenses rose 12% year on year to $27.3 billion. It attributed the increase to higher activity- and revenue-related spending, along with hiring and wage inflation.
In its markets business, fixed income revenue fell 4% year on year to $5.4 billion, according to the bank's statement. The bank attributed the decline to weaker commodities, rates, credit and public finance activity. Equity markets revenue, meanwhile, surged 49% from the same period a year earlier to $5.0 billion for the quarter. Investment banking fees also rose 14% year on year to $3.0 billion. The bank said higher advisory fees were the main driver of investment banking fee growth during the period.
Net interest income totaled $27.1 billion in the third quarter, up 13% year on year, according to the bank's earnings presentation. Excluding markets, net interest income reached $24.7 billion, up 6% from the same period a year earlier. The bank attributed the growth to deposits, card balances and loans to wholesale clients. On consumer activity, the bank said on its earnings call that debit and credit card purchases rose 10% year on year. It pointed to continued strength in consumer demand, including spending on fuel and travel during the quarter.
On credit quality, the card net charge-off rate fell to 2.91%, compared with 3.34% in the previous quarter and 3.15% in the same period a year earlier, according to the earnings presentation. The bank ended the quarter with a standardized Common Equity Tier 1 capital ratio of 13.9%, according to the earnings call. Assets under management stood at $5.2 trillion at the end of the period. Net common stock repurchases during the quarter totaled $664 million, according to the earnings presentation. Jamie Dimon warned of "persistent inflation" in the bank's statement. His warnings also covered fiscal deficits, elevated asset valuations and interest rates, as well as geopolitical risks.
For the fourth quarter of 2026, the bank said on its earnings call that it expected net interest income of about $28 billion. It forecast net interest income excluding markets of about $25.5 billion for the same period. For 2027, the bank outlined a preliminary base case for net interest income excluding markets of about $107 billion. According to its earnings announcement schedule, the bank set January 14, 2027, for its call to review fourth-quarter 2026 results. The call is scheduled to begin at 8:30 a.m. U.S. Eastern time.