JPMorgan Chase & Co.

JPMorgan reported net income of $16.9 billion, EPS of $6.14, and ROTCE of 23%. Excluding significant items, revenue was up 15% year over year, driven mainly by markets revenue, higher asset management fees, higher investment banking revenue, and higher deposit and loan balances, partly offset by lower rates. Expenses were $27.3 billion, up 15% year over year; credit costs were $2.5 billion, including $2.4 billion of net charge-offs and a $149 million net reserve build. The standardized CET1 ratio ended at 14.1%, down 20 basis points quarter over quarter, and standardized RWA increased by approximately $103 billion. For full-year 2026, management now expects NII ex-Markets of about $96.5 billion, total NII of about $105.5 billion, adjusted expenses of about $107.5 billion, and card net charge-off rate of approximately 3.2%. The board intends to raise the quarterly dividend to $1.65 per share effective in the third quarter.

Jamie Dimon framed the quarter as evidence that the franchise is “firing on all cylinders,” but he repeatedly warned that the current environment may not last indefinitely. He emphasized that management is continuing to invest in branches, technology, bankers, and AI, and said those investments are part of a long-running strategy rather than a new shift. On succession, he said the leadership changes were a “natural change,” and described the firm as having a deep bench and strong culture carriers across the company.

Jeremy Barnum highlighted the hard numbers first: $16.9 billion of net income, EPS of $6.14, ROTCE of 23%, revenue up 15% ex-significant items, expenses up 15% to $27.3 billion, and credit costs of $2.5 billion. He explained that the full-year NII ex-Markets outlook was raised to about $96.5 billion mainly because of stronger deposit balances and slightly higher rates, while total NII is expected at about $105.5 billion as markets NII rises to about $9 billion. He also said the adjusted expense outlook was lifted to about $107.5 billion due to higher volume- and revenue-related costs, and that the card net charge-off rate expectation improved to about 3.2% because consumer credit has been better than expected.

Analysts pressed management on leadership succession, sustainability of the strong IB and markets environment, deposits and the 15% retail market-share goal, operating leverage, regulatory changes, and credit underwriting. Management said the leadership changes do not alter the timetable for Dimon’s departure, and that investors should think of the CEO profile as broad: analytical, detailed, curious, culture-oriented, and able to lead a large global company. On markets and IB, Barnum said some of this quarter’s equities strength came from large IPOs, index rebalancing, and other headline-driven activity that may be hard to repeat, while Dimon and Barnum both said underwriting standards have weakened only mildly in some pockets, especially around data center lending and other leveraged situations.