JPMorgan Chase & Co Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
JPMorgan Chase & Co's Q3 2025 earnings call highlighted strong financial results driven by Markets revenue and fees, resilience in consumer and small business data, and an upbeat outlook for Investment Banking. The call also addressed concerns about the labor market, potential credit cycle impacts, and the regulatory environment.
Key Financial Results
Net income was reported at $14.4 billion, with an EPS of $5.07 and an ROTCE of 20%.
Revenue reached $47.1 billion, up 9% year-on-year, driven by higher Markets revenue and increased fees across Asset Management, Investment Banking, and Payments.
Expenses totaled $24.3 billion, an 8% increase year-on-year, due to higher volume and revenue-related expenses.
Credit costs were $3.4 billion, including net charge-offs of $2.6 billion and a net reserve build of $810 million.
The CET1 ratio ended the quarter at 14.8%, down 30 basis points versus the prior quarter.
Business Segment Results
CCB reported net income of $5 billion.
CCB revenue was $19.5 billion, up 9% year-on-year, driven by higher NII, largely in Card on higher revolving balances.
CIB reported net income of $6.9 billion.
CIB revenue was $19.9 billion, up 17% year-on-year, driven by higher revenues across Markets, Payments, Investment Banking, and Securities Services.
AWM reported net income of $1.7 billion with a pre-tax margin of 36%.
AWM revenue reached a record $6.1 billion, up 12% year-on-year, driven by growth in management fees and higher brokerage activity.
Corporate reported net income of $825 million and revenue of $1.7 billion.
Capital Allocation
The company is using its financial resources to lend into the real economy very broadly across the entire franchise.
There is an aspiration to add another $0.5 trillion of this type of lending at the margin, which is the type of RWA growth that consumes excess.
$10 billion of direct equity investments that are incremental is a nice deployment of a modest portion of the excess.
Industry Trends and Dynamics
Consumers and small businesses remain resilient based on the company's data.
The company retained its number one position in retail deposit share in a relatively flat deposit market.
The IPO market was active.
There are approximately 4,000 public companies, down from 8,000 previously.
Competitive Landscape
The company retained its number one position in retail deposit share.
The company's Sapphire refresh has been the best year ever for new account acquisitions for the Sapphire portfolio.
The company's product-agnostic credit strategy across the whole continuum is playing out very nicely.
Macroeconomic Environment
The company is closely watching the potentially softening labor market.
The personal savings rate is a little bit lower than expected.
Consumer spending remains robust, while income was a bit lower.
Equity market performance has been particularly strong, which is driving flows into investments.
Rates are a little bit higher than what's in the forwards, and that is producing slightly higher than otherwise expected yield-seeking flows.
There are a variety of challenges and sources of volatility and uncertainty.
Asset prices are high.
Growth Opportunities and Strategies
The company is focused on expansion and deepening and the core value proposition that they offer.
The company is doing a good job with better products, better services, more branches in better locations, with deepening, with customer segmentation.
The company is focused on reducing securitization requirements, origination requirements, and servicing requirements to reduce the cost of mortgages.
Financial Guidance and Outlook
Fourth quarter NII ex.
Markets is expected to be approximately $23.5 billion and fourth quarter total NII to be about $25 billion.
Fourth quarter adjusted expense is expected to be approximately $24.5 billion, implying $95.9 billion for the full year.
The 2025 Card net charge-off rate is now expected to be approximately 3.3%.
The central case for NII ex.
Markets in 2026 is about $95 billion.
