JPMorgan Chase 10-Qquarter ended 2026-06-30

Positive

Visa-share and other equity gains amplified reported earnings; stronger client activity lifted Markets and investment-banking fees.

Filed 2026-08-06 16:19 ET

Key figures · Q2 FY2026 · period ended 2026-06-30

  • Net revenue$57.3B1YoY +27.7%QoQ +15.1%
  • Net income$21.2BYoY +41.2%QoQ +28.3%
  • Total assets$5.0TYoY +10.2%QoQ +2.3%
  • Total debt
    How total debt adds up
    Long-term debt (included $156,056 and $134,559 at fair value)$460,523M
    + Short-term borrowings (included $29,967 and $32,460 at fair value)$72,430M
    Total debt$532,953M

    Lines as the filer presents them on its balance sheet.

    $533.0B2YoY +9.9%QoQ +3.1%
  • Shareholders' equity$374.6BYoY +5.0%QoQ +2.9%
  • Tangible book value$310.3B3YoY +6.1%QoQ +3.5%
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+0.7CET1 was 14.2% and liquidity coverage 110%, supporting lending and capital returns.
  • Momentum+0.7Net interest income rose 10% and provisions fell 12%, while investment gains boosted revenue 28%.
  • Outlook+0.2Management forecasts $106B net interest income; proposed capital rules may raise requirements approximately 4%.

Executive Summary

JPMorganChase delivered strong Q2 2026 results across trading, investment banking, lending and wealth management, but $5.63B of Visa-share and other equity-investment gains materially amplified reported earnings growth. Net interest income grew despite lower asset yields, while expenses rose as the firm invested in people, technology and distribution. The balance sheet and liquidity position support continued lending and capital returns; investors should nevertheless distinguish recurring business momentum from investment gains and watch the growing secured-funding book, card credit and potential capital-rule changes.

Key Financial Highlights

Metric Q2 2026; H1 2026 or 6/30/2026 Investor interpretation
Total net revenue Q2 $57.3B, +28% Y/Y; H1 $107B, +19% Y/Y Investment gains boosted reported growth.
GAAP net income Q2 $21.2B, +41% Y/Y; H1 $37.6B, +27% Y/Y Diluted EPS was $7.70 in Q2 and $13.63 in H1.
Net interest income Q2 $25.5B, +10% Y/Y; H1 $50.9B, +9% Y/Y Larger earning-asset balances outweighed lower yields.
Noninterest expense Q2 $27.3B, +15% Y/Y; H1 $54.2B, +14% Y/Y Compensation and business investment continued to raise costs.
Provision for credit losses Q2 $2.52B, down 12% Y/Y; H1 $5.02B, down 18% Y/Y Lower provisioning helped earnings.
Total assets $5.02T Reflects a large, expanding lending and Markets balance sheet.
Total stockholders’ equity $375B Supports lending and capital returns.
Tangible common equity $301B Excludes intangible assets from the common-equity measure.
  • Earnings quality: Q2 included a $4.6B net gain on Visa shares and $1.03B of gains on certain equity investments. Noninterest revenue rose 47% Y/Y; these gains are not evidence of equivalent recurring revenue growth.
  • Cash conversion: H1 operating activities used $237B of cash vs $37.6B of net income. Trading, securities-financing, deposit and repo movements drove the divergence, so industrial-company cash-conversion comparisons would be misleading.
  • Capital return: H1 common repurchases were $15.0B; period-end common shares outstanding fell from 2.70B at 12/31/2025 to 2.66B, a net reduction of 38.1M shares. A new $50B authorization took effect on 7/1/2026; the announced Q3 dividend is $1.65 per share, up from $1.50 in Q2.
  • Capital and valuation: The standardized Common Equity Tier 1 ratio fell to 14.2% from 14.6% at year-end as risk-weighted assets grew. Securities’ $786B fair value was $20.8B below amortized cost, primarily reflecting interest-rate pressure.

Business Developments

  • Commercial & Investment Bank: Q2 revenue rose 27% Y/Y to $24.9B, led by Markets revenue of $12.1B, up 35%, and investment-banking fees of $3.28B, up 30%. Client activity strengthened this business, although trading results can fluctuate.
  • Consumer & Community Banking: Q2 revenue rose 8% to $20.3B. Card Services loans reached $250B, up 7% Y/Y, but card income was nearly flat as rewards costs and partner payments offset higher sales.
  • Asset & Wealth Management: Q2 revenue rose 19% to $6.85B. Assets under management reached $5.14T, up 18%, supported by market appreciation and $139B of H1 net inflows; this broadens fee-based earnings but adds market sensitivity.
  • Apple Card and organization: Chase is expected to become Apple Card’s issuer under a forward purchase commitment, with closing expected ≈24 months after 12/30/2025. The firm recorded a $2.2B related provision in Q4 2025. Risk functions were centralized in Corporate in Q1, changing segment expense allocation without changing firmwide expense.

Risk Assessment

  • Credit: The allowance for credit losses was ≈$31.5B; Card Services’ Q2 net charge-off rate was 3.34%. Continued card-loan growth increases exposure if consumer conditions worsen, and management gave greater weight to adverse economic scenarios.
  • Funding and liquidity: Estimated uninsured deposits were $1.74T, primarily wholesale operating deposits, while repo-related funding rose 59% from year-end to $705B. The average liquidity coverage ratio was 110%, but faster balance-sheet growth raises the importance of stable funding.
  • Rates and securities: Lower rates reduced earning-asset yields, while higher-rate effects remain embedded in securities valuations; further rate moves could pressure net interest income or the securities portfolio.
  • Regulation and capital: Proposed U.S. Basel III and global systemically important bank surcharge changes could raise estimated required Common Equity Tier 1 capital ≈4% combined before management actions, potentially constraining returns.
  • Market valuation and litigation: Recurring Level 3 assets were ≈$30.0B, exposing results to model assumptions. Reasonably possible litigation losses above reserves range from $0 to ≈$1.3B; Russian proceedings also pose asset-seizure and client-impact risks.

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

Management’s stated full-year outlook calls for net interest income of ≈$106B, adjusted expense of ≈$108B and a Card Services net charge-off rate of ≈3.2%, subject to markets and the economy. The investment case rests on whether client activity and balance-sheet growth can sustain earnings after Q2’s investment gains, without disproportionate funding, credit or capital costs.

  • Recurring growth: Monitor net interest income excluding Markets against management’s ≈$96.5B full-year outlook, alongside investment-banking and wealth-management fees.
  • Credit and funding: Track card charge-offs against the ≈3.2% full-year outlook, plus uninsured deposits, repo funding and the liquidity coverage ratio.
  • Capital deployment: Watch the Common Equity Tier 1 ratio as risk-weighted assets grow and repurchases proceed; sustained share-count reduction would confirm that buybacks are benefiting per-share results.

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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