JPMorgan Chase 8-K

Summary

FY2025 and Q4 2025 results with FY2026 outlook. Q4 net income fell 7% Y/Y, including a $2.2B pretax credit reserve for the forward purchase commitment of the Apple credit card portfolio. FY2025 net income fell 2% Y/Y; the presentation also gave 2026 outlook for net interest income, adjusted expense and Card Services credit losses.

Key Figures

• Q4 credit costs were $4.7B, including $2.5B of net charge-offs and a $2.1B reserve build. The Apple card commitment reserve was $2.2B pretax ($1.665B after tax); excluding it, Q4 net income was $14.7B, EPS $5.23 and ROTCE 20%, vs reported $13.0B, $4.63 and 18%.
• FY2025 included the Apple card reserve, a $588M First Republic-related gain and a $774M income tax benefit. Excluding those items, net income was $57.5B and EPS $20.18, vs reported $57.0B and $20.02.
• Capital returned included $7.9B of net common-stock repurchases and $4.1B of common dividends ($1.50 per share); LTM net payout was 82%. Average loans were $1.5T, up 9% Y/Y, and average deposits were $2.6T, up 6%.

Guidance

The outlook assumes two rate cuts, a 3.25% federal funds target upper bound at year-end, and average interest on reserve balances down 92bp Y/Y.

Investor Takeaways

• Track FY2026 net interest income and adjusted expense against the outlook, which is market dependent.
• Card Services’ net charge-off rate is a key credit metric to compare with the FY2026 outlook.