01—Abstract
Summary
Summary of the 8-K filed October 13, 2026. Cited figures are marked; the original filing is the authoritative source.
JPMorgan Chase reported third-quarter 2026 net income of $15.3 billiona, or $5.57 per diluted share, up 6% from $14.4 billion ($5.07) a year earlier, but down 28% from the $21.2 billion ($7.70) in the prior quarter, which included a $4.6 billion Visa Class C gain.
Excluding a $658 millionb pre-tax ($498 million after-tax, $0.18 per share) net investment securities loss in Corporate, net income would have been $15.8 billion ($5.75 per share) and ROTCE 21% versus 20% reported. Reported net revenue was $50.2 billion, down 13% sequentially but up 8% year over year; managed revenue was $50.9 billion, up 8%. Growth was led by the Commercial & Investment Bank (revenue up 14% YoY, Equity Markets up 49%, Investment Banking fees up 14%) and Asset & Wealth Management (revenue up 14%, client assets up 15% to $7.9 trillion), with Consumer & Community Banking revenue up 9% and net income up 13%.
Credit costs were manageable, with a provision of $2.7 billionc, net charge-offs of $2.2 billion (down $389 million YoY, driven by Wholesale), and a $539 million net reserve build. Expenses rose 12% to $27.3 billion, and the reported overhead ratio was 54%. Average loans grew 10% year over year and deposits grew 8%.
Capital remained strong, with a Standardized CET1 ratio of 13.9%, an Advanced ratio of 14.1%, and an SLR of 5.5%. Book value per share rose 6% to $132.30d and tangible book value per share rose 7% to $112.64. Capital return was modestly lower.
The firm declared a $1.65 per share common dividend (up 10% YoY) and repurchased $664 million of common stock net of employee issuance, down sharply from $6.7 billion in the prior quarter. Management attributed the reduction to its capital hierarchy and said it expects to deploy capital over time at attractive returns. Management also flagged elevated fiscal deficits, sticky inflation, rising interest rates, and geopolitical risks, while noting that activity moderated somewhat during the quarter.
02—Key points
Key Highlights
- Third-quarter net income of $15.3 billion ($5.57 per diluted share), up 6% YoY; excluding a $658 million securities loss, net income was $15.8 billion ($5.75 per share) and ROTCE was 21%.
- Reported net revenue of $50.2 billion fell 13% QoQ due to the prior quarter's $4.6 billion Visa gain, but rose 8% YoY; managed revenue was $50.9 billion.
- CIB net income of $8.2 billion rose 20% YoY, with Markets revenue up 15% (Equity Markets up 49%, Fixed Income down 4%) and Investment Banking fees up 14%.
- AWM net income of $1.8 billion rose 11% YoY on 14% revenue growth; client assets reached $7.9 trillion, up 15%, with $263 billion of net inflows in the quarter.
- Noninterest expense rose 12% YoY to $27.3 billion; the overhead ratio was 54%, versus 52% a year earlier.
- Credit quality remained stable: net charge-offs of $2.2 billion (down 15% YoY), a $539 million reserve build, and a Card net charge-off rate of 2.91%.
- Capital stayed strong with a 13.9% Standardized CET1 ratio and 5.5% SLR; the $1.65 dividend rose 10% YoY, while share repurchases fell to $664 million net from $6.7 billion in Q2.
03—Questions
Frequently Asked Questions
Why did reported net income fall 28% from the prior quarter?
The second quarter of 2026 included a $4.6 billion net gain on Visa Class C common stock, plus about $1.0 billion of other equity investment gains. Third-quarter results also included a $658 million pre-tax net investment securities loss in Corporate. Excluding that loss, net income was $15.8 billion, still down about 25% from the prior quarter's $21.2 billion, which included the Visa gain.
What drove the year-over-year revenue and earnings growth?
Growth was broad. CIB revenue rose 14%, led by Equity Markets (+49%) and Investment Banking fees (+14%). AWM revenue rose 14% on higher management fees and inflows, and CCB revenue rose 9%, driven by Card Services (+15%) and Banking & Wealth Management (+6%). Partly offsetting these gains, Corporate's net revenue fell by $1.6 billion, mainly because of lower net interest income and the securities losses.
Is the firm reducing shareholder returns?
Share repurchases were reduced: $664 million net in the quarter versus $6.7 billion in the prior quarter. Management said this reflects its capital hierarchy, prioritizing investment in the franchise and client support, and that it expects to deploy capital over time at attractive returns. The dividend was raised to $1.65 per share from $1.50, up 10% year over year, and the net payout ratio over the last twelve months was 61%.
How strong is the balance sheet and capital position?
The firm reported a Standardized CET1 ratio of 13.9% and an Advanced ratio of 14.1%, with CET1 capital of $304 billion, a supplementary leverage ratio of 5.5%, and total assets of $5.1 trillion. Book value per share was $132.30, up 6% year over year. Total loans rose 10% to $1.58 trillion and deposits rose 9% to $2.78 trillion, although the CET1 ratio declined from 14.2% in the prior quarter.
What risks did management flag for the outlook?
Management pointed to large fiscal deficits, sticky inflation, elevated asset prices, rising interest rates, and geopolitical conditions that could shift beneath the surface. It said the firm is prepared for a wide range of outcomes. The release also noted that client activity moderated somewhat during the quarter, even though Markets revenue was up 15% year over year. Credit reserves were built modestly, with the provision of $2.7 billion driven largely by Wholesale.
04—Continue