01—Abstract
Summary
Summary of the 8-K filed January 13, 2026. Cited figures are marked; the original filing is the authoritative source.
JPMorgan Chase reported fourth-quarter 2025 net income of $13.0Ba, or $4.63 per diluted share, down 7% year over year, with managed revenue of $46.8B up 7% YoY.
Results were depressed by a $2.2Bb credit reserve established for the forward purchase commitment of the Apple credit card portfolio. Excluding that significant item, net income would have been $14.7B, EPS $5.23, and ROTCE 20%. The Apple reserve, which equates to a $0.60 per-share hit after tax, is the main distortion investors need to adjust for when comparing the quarter with prior periods.
Core operating trends were solid. Net interest income rose 7% YoY to $25.1Bc and noninterest revenue rose 7% to $21.7B, with Markets revenue up 17% to $8.2B. Expenses rose 5% to $24.0B, and the managed overhead ratio was 51%.
Average loans grew 9% YoY to $1.5Td and average deposits grew 6% to $2.6T. Credit costs were $4.7B, including $2.5B of net charge-offs and a $2.1B net reserve build. Capital remained strong, with a standardized CET1 ratio of 14.5% (down from 15.7% a year earlier, mainly reflecting RWA growth and the Apple card effect).
The firm returned $4.1B in common dividends and made $7.9B of net buybacks. Management guided to 2026 net interest income of about $103B (about $95B excluding Markets), adjusted expense of about $105B, and a Card Services net charge-off rate of about 3.4%.
Expected reduction in Apple card advanced RWA from roughly $110B to $30B should also benefit capital ratios once modeling is complete. Note that this 8-K furnishes presentation slides under Regulation FD and contains no new financial statements.
02—Key points
Key Highlights
- 4Q25 net income of $13.0B (EPS $4.63), down 7% YoY; excluding the $2.2B Apple card forward purchase reserve, net income was $14.7B (EPS $5.23) and ROTCE was 20%.
- Managed revenue of $46.8B, up 7% YoY; NII of $25.1B and NIR of $21.7B both up 7%, with Markets revenue up 17% to $8.2B.
- Expense of $24.0B, up 5% YoY, with a managed overhead ratio of 51%; FY2025 adjusted overhead ratio of 51%.
- Credit costs of $4.7B in 4Q25, including a $2.1B net reserve build tied to the Apple card commitment; NCOs of $2.5B.
- Capital: standardized CET1 ratio of 14.5% and advanced CET1 of 14.1%; $4.1B in common dividends and $7.9B of net buybacks in the quarter.
- 2026 outlook: NII of ~$103B (~$95B ex. Markets), adjusted expense of ~$105B, and Card Services NCO rate of ~3.4%.
- Apple card advanced RWA expected to fall from ~$110B to ~$30B once modeling is complete, a potential capital tailwind.
03—Questions
Frequently Asked Questions
What was the Apple card reserve and how did it affect 4Q25 results?
JPMorgan established a $2.2B credit reserve for the forward purchase commitment of the Apple credit card portfolio in 4Q25. After tax, it reduced net income by $1.7B and EPS by $0.60, and lowered ROTCE by about 2 percentage points. Excluding the item, reported EPS would have been $5.23 rather than $4.63.
How did the firm's underlying profitability and revenue trend in 4Q25?
Revenue grew 7% YoY to $46.8B, led by net interest income and Markets, which rose 17%. Expenses grew 5%, so the managed overhead ratio stayed at 51%. Net income was down 7% YoY mainly because of the Apple reserve and higher credit costs, not because of weaker core operations.
How strong is the firm's capital and liquidity position?
The standardized CET1 ratio was 14.5% at year-end 2025, down from 15.7% a year earlier but still well above regulatory minimums. The Firm SLR was 5.8% and the Firm LCR was 111%. Tangible book value per share rose to $107.56 from $97.30. The firm also returned $12.0B to shareholders in the quarter through dividends and net buybacks.
What is the 2026 outlook?
Management expects 2026 net interest income of about $103B, or about $95B excluding Markets, assuming two rate cuts and continued card revolve and deposit growth. Adjusted expense is guided to about $105B, and the Card Services NCO rate to about 3.4%. These projections are market-dependent.
Are there any credit quality concerns investors should watch?
Card Services net charge-off rates were stable at 3.14% in 4Q25, and FY2025 NCOs rose $1.2B to $9.8B, driven mainly by Wholesale and Card Services. The firm also disclosed about $332B of non-bank financial institution (NBFI) lending exposure, with an NCO rate of 0.14%, and it flagged a leveraged loan loss-assumption update in CIB that drove a $405M credit cost in that segment.
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