JPMorgan Chase 10-Qquarter ended 2026-09-30
Positive
Equity Markets and payments led growth, but technology spending, hiring and losses on U.S. Treasury sales tempered earnings gains.
Filed 2026-11-03 16:17 ET
Key figures · Q3 FY2026 · period ended 2026-09-30
- Net revenue$50.2B1YoY +8.1%QoQ −12.5%
- Net income$15.3BYoY +6.3%QoQ −27.7%
- Total assets$5.1TYoY +11.7%QoQ +1.5%
- Total debt$531.5B2YoY +7.0%QoQ −0.3%
How total debt adds up Long-term debt (included $159,396 and $134,559 at fair value) $460,160M + Short-term borrowings (included $29,251 and $32,460 at fair value) $71,339M Total debt $531,499M Lines as the filer presents them on its balance sheet.
- Shareholders' equity$372.4BYoY +3.4%QoQ −0.6%
- Tangible book value$307.5B3YoY +4.0%QoQ −0.9%
Notes (3)
- Net revenue: Net interest income plus non-interest income, as the filer presents them.
- 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.
- 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+0.5Advanced total capital was 16.1% against a 15.0% requirement; CET1 stood at 14.0%.
- Momentum+0.4Q3 revenue rose 8.1% and net income 6.3%, while expenses increased 12%.
- Outlook0.0Q4 net interest income is forecast at $28B, while criticized wholesale exposure rose to $52.1B.
Executive Summary
JPMorgan Chase provides banking, payments, investment banking, trading and investment management to consumers, businesses, institutions and wealthy clients, earning interest and fees. It is expanding lending and client activity while investing in technology, front-office hiring and marketing. This quarter, equity trading, payments and lower deposit costs supported growth, but higher expenses and securities-sale losses limited the earnings benefit. The investment case rests on whether that broader client franchise can sustain growth as interest rates fall, without weakening credit quality or consuming too much capital.
What's Happening in the Business
The Commercial & Investment Bank led the quarter. Equity Markets revenue reached $4.95B, up 49% Y/Y, while Fixed Income Markets fell 4.4% to $5.37B. Payments grew 14% to $5.62B, showing that growth extended beyond trading. JPMorgan ranked first globally in investment-banking fees, with 9.2% wallet share YTD.
Consumer banking benefited from deposits and larger credit-card revolving balances. Higher annual card fees also helped, although rewards, partner costs and lower net interchange income offset part of that benefit. Home Lending was softer: mortgage fees and related income fell 28% to $274M as production declined.
Asset & Wealth Management benefited from market appreciation and client inflows. Firmwide asset-management fees rose 15% to $5.90B, linking part of earnings growth to both customer assets and market levels.
The bank continued spending on compensation, technology, marketing and client-facing staff. Treasury also repositioned its securities portfolio by selling U.S. Treasuries at a loss—a current earnings cost from changing its investment holdings, rather than evidence of deteriorating borrower credit.
Key Financial Highlights
| Metric | Q3 2026; Y/Y | 9M 2026; Y/Y | Investor interpretation |
|---|---|---|---|
| Net revenue | $50.2B; +8.1% | $157B; +15% | Quarterly growth was slower; the nine-month comparison benefited from investment gains. |
| Net interest income, GAAP | $27.0B; +13% | $77.9B; +11% | More earning assets and cheaper deposits offset lower asset yields. |
| Noninterest expense | $27.3B; +12% | $81.5B; +14% | Hiring, wage inflation, investment and activity-linked costs absorbed revenue growth. |
| Provision for credit losses | $2.74B; −19% | $7.77B; −19% | Lower credit costs cushioned spending pressure; quarterly wholesale charge-offs improved. |
| Net income | $15.3B; +6.3% | $53.0B; +20% | Nine-month earnings include the second-quarter Visa exchange gain, unlike Q3. |
Segment results are on a managed basis; profit is pretax income.
| Segment | Q3 revenue | Y/Y | Q3 pretax income | Y/Y |
|---|---|---|---|---|
| Consumer & Community Banking | $21.2B | +8.7% | $7.57B | +14% |
| Commercial & Investment Bank | $22.7B | +14% | $11.3B | +21% |
| Asset & Wealth Management | $6.91B | +14% | $2.47B | +13% |
- Interest-income mix: Managed net interest income excluding Markets grew 6% in Q3 vs 4% for 9M, substantially slower than total net interest income. Trading-related interest income therefore explains part of the headline strength.
- Funding economics: Average loans grew 10%, while average deposit cost fell to 2.18% from 2.41%. Larger balances and cheaper funding mattered more than loan pricing, which weakened.
- Nonrecurring items: The nine-month Visa-share exchange gain was $4.6B. Q3 investment-securities losses were $(658)M vs a $105M gain; Corporate recorded a $(463)M pretax loss vs $1.26B profit, reflecting securities sales, lower rates and equity-investment losses.
- Credit: Net charge-offs fell 15% to $2.20B, and card delinquencies improved to 1.97% from 2.16%. However, growing card balances kept nine-month card charge-offs above the prior year.
- Capital: The common equity Tier 1 ratio fell to 14.0% from 14.6% as risk-weighted assets grew. The Advanced total capital ratio was the binding risk-based constraint: 16.1% against a 15.0% requirement.
Risk Assessment
- Capital capacity: Balance-sheet growth is consuming regulatory headroom, potentially limiting lending expansion or shareholder distributions despite strong earnings.
- Funding and rates: Estimated uninsured deposits of $1,780B, primarily wholesale operating balances, create funding sensitivity; falling asset yields could also outrun deposit-cost reductions.
- Credit deterioration: Wholesale criticized exposure rose to $52.1B, including downgrades and new commitments in Consumer & Retail and technology, media and telecommunications, leaving potential losses despite improving headline credit metrics.
- Securities valuation: Gross unrealized losses of $13.7B on available-for-sale securities and $25.8B on held-to-maturity securities expose the portfolio to rate movements and potential realized losses if holdings are sold.
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.
What to Watch
- Markets durability: Equity Markets drove the quarter while Fixed Income Markets contracted; broader growth would support durability, while an equity reversal would expose reliance on that business.
- Consumer lending quality: Card delinquencies improved, but balance growth increased nine-month charge-offs. Management expects an ≈3.2% FY Card Services charge-off rate; later results will test whether growth remains profitable.
- Deposit economics: Management expects Q4 net interest income of ≈$28B, including $25.5B excluding Markets. Delivery through loan and deposit growth would strengthen the core-bank story; further dependence on Markets would qualify it.
- Growth versus capital returns: A $50B repurchase authorization began on 7/1/2026. Future filings will show whether capital generation supports both expansion and distributions, or whether shrinking headroom forces a trade-off.
Longer version: the summary of each of the report's 6 sections, written by an AI model from the same filing.
Changes since the previous 10-Q
- Watch item improved Card expansion
Card sales grew 10%; the charge-off rate was 3.34%. → Card sales again grew 10%; the charge-off rate fell to 2.91%.
Figures are computed from the filing's XBRL data; the summary and scores are written by an AI model reading the filing.
Model 006 · prompt v172 · 2026-11-03 23:43:21Z