JPMorgan Chase opened the third-quarter bank earnings season with another strong set of numbers. The largest US bank reported net income of $15.3 billion, or $5.57 per share, for the three months to September 30.
Excluding a $658 million loss on investment securities, profit was $15.8 billion, or $5.75 per share.
Key numbers
- Managed revenue: $50.9 billion (reported $50.2 billion)
- Return on tangible common equity: 20%, or 21% excluding the securities loss
- Markets revenue: $10.3 billion, up 15% from a year earlier
- Investment banking fees: up 14% year on year, down 8% from the second quarter
- Card net charge-off rate: 2.91%
Trading desks shine again
Volatility has been good business for Wall Street in 2026. Swings in oil prices, rising interest rates in Europe and Japan, and heavy government bond issuance all kept clients active. JPMorgan’s markets division generated more than $10 billion of revenue for the quarter.
Investment banking also improved on last year as merger activity and debt issuance picked up, although fees slipped from a busy second quarter.
The securities loss
The $658 million loss came from selling investment securities, about $498 million after tax. Banks often take such losses to reinvest at higher yields, accepting a one-off hit in exchange for better returns in later quarters.
Consumer health
The card charge-off rate of 2.91% shows that some borrowers are under strain. Investors are watching credit quality closely as energy costs and higher rates squeeze household budgets.
What Jamie Dimon said
Chief executive Jamie Dimon said the firm “reported another quarter of strong results” and that each line of business performed well. He noted that the bank reduced share buybacks, in line with its approach to capital, and remains “prepared for a wide range of outcomes.”
Dimon has repeatedly warned about geopolitical risk, sticky inflation and high asset prices, and has kept a large capital buffer as a result.
Why it matters
JPMorgan is often seen as a bellwether for the US economy because it serves consumers, businesses and governments at enormous scale. Its results suggest that the financial system remains profitable and well capitalised, even as growth slows and rates stay elevated.
Other major US banks report in the days that follow. For more earnings coverage, visit our Finance section.