JPMorgan profit reaches $15.3 billion, misses expectations
Key Facts
JPMorgan Chase reported higher third-quarter profit on October 13, 2026, but earnings per share fell short of Wall Street expectations despite improving from a year earlier. Net income totaled $15.3 billion, according to the bank's filing with the U.S. Securities and Exchange Commission. That compared with profit of $14.4 billion in the third quarter of 2025. Earnings per share rose to $5.57 from $5.07 in the corresponding period. Analysts had expected earnings of $5.93 per share, according to the Associated Press, above the bank's reported result.
Excluding the one-off item, net income totaled $15.8 billion, according to the bank's earnings statement, compared with reported profit that included the item's impact. Earnings per share on that basis were $5.75, also below analysts' estimates. The results included $658 million in pretax net investment securities losses, which the bank recorded in its Corporate segment. In its markets business, fixed-income trading revenue fell 4% from the same quarter a year earlier. Equity trading revenue, meanwhile, rose 49% year on year, with a clear divergence in the performance of the two trading businesses during the period.
Total revenue on a managed basis reached $50.9 billion, up 8% year on year, according to the bank's earnings call presentation. The bank attributed revenue growth to trading, higher deposit balances and asset management fees. Expenses, however, rose faster, increasing 12% year on year to $27.3 billion during the quarter. The bank attributed the increase to business- and revenue-related expenses, alongside expanded hiring in client-facing roles. It also cited wage inflation among the factors that drove costs higher as its business and revenue grew.
The bank's results showed net interest income rose to $27.1 billion, up 13% from the corresponding quarter a year earlier. Average deposits totaled $2.7 trillion, according to the presentation accompanying the earnings release. That average rose 8% from the same period a year earlier and 2% from the previous quarter. Among capital metrics, the standardized Common Equity Tier 1 capital ratio stood at 13.9% in the third quarter. The ratio had stood at 14.2% in the second quarter of 2026, declining quarter on quarter as net interest income and average deposits rose.
The results came as U.S. consumer price inflation accelerated, according to Bureau of Labor Statistics data released on October 14, 2026. Annual inflation reached 3.7% in September, compared with 3.4% in August. The gasoline price index rose 9.1% in September alone, according to the official release. The increase in gasoline accounted for more than half of the monthly rise in the overall consumer price index, making it a key driver of the month's increase. Core inflation, which excludes food and energy prices, stood at 2.6% year on year in September.
Chief Executive Jamie Dimon warned in the earnings statement of "persistent inflation, elevated asset prices, higher interest rates and geopolitical conditions." His warnings encompassed price risks, asset valuations and the international conditions surrounding the bank's business. In the market, the bank's shares rose 0.2% in midday trading on October 13, 2026, the day the results were announced, according to the Associated Press. The Bureau of Labor Statistics is scheduled to release the October consumer price index on November 10, 2026, at 8:30 a.m. Eastern Time. The bank scheduled its fourth-quarter 2026 earnings call for January 14, 2027, at 8:30 a.m. in the same time zone.