Jpmorgan Chase & Co

JPMorgan reported Q3 2026 net income of $15.3 billion (up 6%) and diluted EPS of $5.57 on revenue of $50.2 billion (up 8%), driven by higher Markets, deposit and card net interest income, asset management fees and investment banking fees. Expenses rose 12% to $27.3 billion, and $658 million of net investment securities losses weighed on results. Credit costs fell with a $2.7 billion provision, and the CET1 ratio was 14.0% versus 14.8% a year earlier. Risk Factors refer back to the 2025 Form 10-K, so there is no change in risk factors.

1. 1.Net revenue rose 8% to $50.2B and net income 6% to $15.3B, with nine-month net income up 20% to $53.0B; the nine-month figure includes a $4.6B Visa share gain and $1.0B of equity investment gains recorded in Q2.
2. 2.Net interest income rose 13% to $27.0B (Markets NII $2.4B vs $0.7B), and NII excluding Markets rose 6% to $24.7B.
3. 3.Noninterest expense rose 12% to $27.3B on revenue-related compensation, wage inflation, headcount, marketing and technology, lifting the overhead ratio to 54% from 52%.
4. 4.Treasury and CIO recorded $658M of investment securities losses (vs a $105M gain), mainly from selling U.S. Treasuries; Corporate swung to a $455M net loss from $825M of income.
5. 5.Provision for credit losses fell 19% to $2.7B and net charge-offs fell to $2.2B, but the allowance coverage ratio dropped to 1.75% from 1.88% a year earlier; the allowance includes $2.3B tied to the Apple Card transaction.
6. 6.CET1 ratio fell to 14.0% from 14.8% as RWA grew to $2.18T, while buybacks slowed to $1.1B in the quarter (from $8.3B), a new $50B repurchase program began July 1, and the quarterly dividend rose to $1.65 from $1.50.

1. 1.Proposed U.S. Basel III re-proposal and GSIB surcharge changes would raise required CET1 capital by about 4% net versus current rules effective in 2028, and the firm's capital ratios are declining as balance sheet growth outpaces capital.
2. 2.Wholesale credit exposure is growing, with criticized exposure up to $52.1B, notably in Consumer & Retail (criticized up $1.8B on downgrades), Real Estate ($12.7B criticized), and Technology, Media & Telecom.
3. 3.The allowance leans on adverse scenarios (unemployment peaking at 5.6% in Q3 2027); the relative adverse scenario would add roughly $11B of modeled credit losses across portfolios, and Card Services net charge-offs are guided to about 3.2% for 2026.
4. 4.Interest rate and AOCI risk: AOCI losses widened to $19.8B (cash flow hedges and AFS securities), securities repositioning is generating realized losses, and rate sensitivity to falling rates remains negative.
5. 5.Markets-driven balance sheet growth (trading assets $1.09T, repo $703B, total assets $5.1T) raises market and liquidity risk; VaR rose to $48M from $33M a year ago, with 23 backtesting exceptions in the trailing 12 months.
6. 6.Litigation and political risk is newly emphasized: the OCC fair-access report, a lawsuit by President Trump against JPMorgan Chase Bank and its CEO, a new interchange class action, Russian court judgments, and a reasonably possible loss range of up to $1.3B above reserves.