J.P. Morgan Chase (JPM.US) Q3 revenue, EPS fell short of expectations, and the decline in fixed income transactions dragged down performance

The Zhitong Finance App learned that J.P. Morgan Chase (JPM.US) released the financial report for the third quarter of 2026 in advance of the US stock market on October 13. Revenue for the quarter was $50.907 billion, up 8% year over year, lower than market expectations; adjusted earnings per share of $5.75 were also lower than market expectations. Net profit was US$15.305 billion, up 6% year over year.

Results that fell short of expectations were mainly dragged down by declining revenue and rising costs from fixed income transactions. Market (Markets) revenue for the quarter was US$10.3 billion, up 15% year on year. Among them, stock trading revenue was US$4.954 billion, up 49% year on year, and fixed income trading revenue was US$5.366 billion, down 4% year on year, significantly lower than market expectations of about US$6 billion. Non-interest expenses were US$27.295 billion, up 12% year on year, and the growth rate was higher than revenue; non-interest income was US$23.776 billion, up 3% year on year; net interest income was US$27.1 billion, up 13% year on year.

By business, Consumer and Community Bank (CCB) net revenue was US$21.171 billion, up 9% year on year, net profit of US$5.67 billion, up 13% year on year, and the card business net write-off rate fell to 2.91% (3.15% in the same period last year), adding more than 650,000 net new cheque accounts during the quarter. Corporate and Investment Banking (CIB) net revenue was US$22.734 billion, up 14% year on year, and net profit of US$8.247 billion, up 20% year over year, including bank and payment revenue of US$10.958 billion, up 16% year on year, and investment banking expenses of US$3 billion, up 14% year on year. Asset and Wealth Management (AWM) net revenue was US$6.909 billion, up 14% year over year, net profit of US$1,843 billion, and net inflow of client assets of US$263 billion. The corporate sector had a net loss of US$455 million, mainly due to the loss of investment in securities mentioned above.

In terms of asset quality, the credit loss provision for the quarter was US$2,743 million, down from US$3.403 billion in the same period last year; net write-off of US$2.2 billion, a year-on-year decrease of US$389 million, mainly from the wholesale business; and net provision of US$539 million, compared to US$810 million for the same period last year. In terms of capital, the standard law CET1 ratio was 13.9%, with a book value of $132.30 per share, an increase of 6% over the previous year. Common stock dividends for the quarter were $1.65 per share, with a net repurchase of $664 million.

Dimon, chairman and CEO of J.P. Morgan Chase, said that all business lines performed well. “Huge fiscal deficits, sticky inflation, high asset prices, rising interest rates, and geopolitical conditions” continue to evolve. These forces “may be controlled,” but the company is “prepared for all possible outcomes.”

After the financial report was announced, as of press release, J.P. Morgan's stock price fell about 2.4% before the market.