JPMorgan Chase 10-Qquarter ended 2026-03-31

Positive

Client trading and investment-banking fees drove growth, but technology and marketing costs pushed expenses ahead of revenue.

Filed 2026-05-01 16:18 ET

Key figures · Q1 FY2026 · period ended 2026-03-31

  • Net revenue$49.8B1YoY +10.0%QoQ +8.8%
  • Net income$16.5BYoY +12.6%QoQ +26.6%
  • Total assets$4.9TYoY +12.5%QoQ +10.7%
  • Total debt
    How total debt adds up
    Long-term debt (included $144,704 and $134,559 at fair value)$448,764M
    + Short-term borrowings (included $28,937 and $32,460 at fair value)$68,048M
    Total debt$516,812M

    Lines as the filer presents them on its balance sheet.

    $516.8B2YoY +9.4%QoQ +3.4%
  • Shareholders' equity$364.0BYoY +3.6%QoQ +0.4%
  • Tangible book value$299.7B3YoY +4.5%QoQ +0.6%
Notes (3)
  1. Net revenue: Net interest income plus non-interest income, as the filer presents them.
  2. Total debt: Excludes deposits, repurchase agreements, federal funds purchased and securities loaned. Borrowings the company raised to fund itself: long-term and short-term borrowings, FHLB advances, subordinated debt and finance leases.
  3. Tangible book value: Goodwill, mortgage servicing rights and other intangible assets, which this bank presents as one line. The servicing rights are deducted too, which this bank's own tangible equity does not do.

How this filing reads

  • Health+0.6CET1 was 14.3% and liquidity coverage 112%, above its 100% minimum.
  • Momentum+0.5Revenue rose 10% and net income 13%, while expenses grew 14% and overhead reached 54%.
  • Outlook−0.1Wealth inflows were $67B; expenses rose 14% and proposed rules could raise capital needs ≈4%.

Executive Summary

JPMorganChase delivered higher Q1 earnings as client trading, investment banking and wealth-management activity complemented growth in card lending and deposits. Revenue rose 10% Y/Y and net income rose 13%, but expenses grew faster than revenue, lifting the overhead ratio and tempering the operating result. Credit losses were broadly stable, while a larger Markets balance sheet and unrealized securities losses increased the importance of funding and interest-rate risk. For investors, the opportunity is a diversified franchise gaining fee revenue; the test is whether that growth continues without further expense pressure or credit deterioration.

Key Financial Highlights

Metric Q1 2026 or 3/31/2026 Investor interpretation
GAAP net revenue $49.8B, +10% Y/Y Markets and fee growth broadened revenue beyond lending.
GAAP net income $16.5B, +13% Y/Y Lower credit provision helped offset faster expense growth.
Diluted EPS $5.94, +17% Y/Y A lower average diluted share count added to earnings growth.
Net interest income $25.4B, +9% Y/Y Excluding Markets, growth was 3%; the headline rate overstates underlying spread-income momentum.
Noninterest expense $26.9B, +14% Y/Y Expense growth exceeded revenue growth; the overhead ratio rose to 54% from 52%.
Provision for credit losses $2.51B, down 24% Y/Y Net charge-offs were broadly flat, so the lower provision is not evidence of a comparable drop in realized losses.
Total assets $4.90T Markets and secured-financing activity expanded the balance sheet.
Total stockholders’ equity $364B Capital remained substantial, although regulatory requirements may rise.
Tangible common equity $292B Tangible book value per share increased 8% Y/Y.
Net cash from operating activities $(212)B Trading assets and other balance-sheet flows drove the outflow despite positive earnings.
  • Earnings quality: Q1 operating cash flow diverged sharply from net income as trading assets and resale agreements expanded; financing inflows included repos, deposits and borrowings. This is a balance-sheet-flow issue, not a direct read-through of the quarter’s profitability.
  • Capital return: $8.33B of shares repurchased; period-end shares outstanding fell from 2.70B to 2.68B, a net reduction of 16.8M shares. Dividends paid were $4.37B.
  • Capital and valuation: Standardized common equity Tier 1 capital ratio was 14.3%, down from 14.6% at year-end. Other comprehensive income was a $2.40B loss, principally from unrealized securities and cash-flow-hedge losses; goodwill was $52.7B.

Business Developments

  • Commercial & Investment Bank: Revenue rose 19% to $23.4B and net income rose 30% to $9.04B. Markets revenue grew 20%, while firmwide investment-banking fees rose 31%; stronger client activity was the principal growth engine, but also drove balance-sheet expansion.
  • Consumer & Community Banking: Revenue rose 7% to $19.6B. Card sales volume increased 9%, and card loans rose 7% Y/Y; auto leasing added income alongside higher depreciation. The card net charge-off rate improved to 3.47% from 3.58%.
  • Asset & Wealth Management: Revenue rose 11% to $6.37B. Assets under management grew 16% to $4.79T, supported by $67B of quarterly net inflows, extending the contribution from client assets and fees.
  • Upcoming transactions: Chase expects to become Apple Card’s issuer, with closing anticipated ≈24 months after 12/30/2025; the related $2.2B allowance was recorded in Q4 2025, not this quarter. JPMorganChase also tendered 18.6M Visa B-2 shares; acceptance could produce a fair-value gain as early as Q2, which would be distinct from recurring operations.

Risk Assessment

  • Credit: Nonperforming assets rose 10% Y/Y to $10.0B and wholesale criticized exposure reached $51.4B; deterioration could reverse the benefit of this quarter’s lower provision.
  • Capital requirements: Proposed U.S. rule changes would increase required common equity Tier 1 capital by ≈4% combined before management mitigation, potentially constraining capital returns or balance-sheet growth.
  • Interest rates and securities: Held-to-maturity securities carried a $17.6B fair-value shortfall to amortized cost; rate moves can pressure economic value, while lower rates contributed to weaker Corporate results.
  • Markets and funding: Trading assets rose 33% from year-end to $1.07T, increasing exposure to volatility and financing conditions. Average liquidity coverage was 112%, above the 100% minimum.
  • Expense execution: Technology, marketing, distribution and leasing costs helped push expenses up faster than revenue; sustained growth on that basis would erode operating leverage.
  • Valuation and operations: Level 3 fair-value assets were $28.0B, and market-risk backtesting recorded 15 exceptions over 12 months; model uncertainty, cybersecurity or operational disruption could compound trading risk.
  • Litigation: Reasonably possible losses above established reserves were $0–$1.3B, with outcomes potentially differing from current estimates.

This 10-Q lists no risk factors of its own and refers to the annual report. The risks above come from the rest of this filing. Full list: FY2025 10-K.

Strategic Outlook and Investor Actionables

The near-term thesis rests on converting strong client activity and wealth inflows into durable earnings while controlling costs, credit losses and capital consumption. Monitor:

  • Revenue quality: Markets activity and investment-banking fees vs net interest income excluding Markets; continued fee growth alongside broader spread-income growth would strengthen the thesis.
  • Credit and costs: Card charge-off rate, nonperforming assets and overhead ratio; rising losses or another quarter of expenses outpacing revenue would weaken it.
  • Capital capacity: Common equity Tier 1 ratio and the final regulatory requirements; sustained capital headroom alongside a shrinking share count would support continued returns to shareholders.

Figures are computed from the filing's XBRL data; the summary and scores are written by an AI model reading the filing.

Model 005 · prompt 9e47f58d3c

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