Prime Highlight
- JPMorgan Chase exceeded Wall Street expectations in Q4, driven by robust revenue from equities and fixed income trading.
- Despite a one-time $2.2 billion charge from the Apple Card portfolio deal, the bank’s overall results reflected a resilient U.S. economy and steady consumer spending.
Key Facts
- The bank reported adjusted earnings of $5.23 per share on $46.77 billion in revenue, beating analyst estimates, while reported profit fell 7% to $13.03 billion due to the Apple Card reserve.
- Equities trading revenue rose 40% to $2.9 billion, and fixed income trading increased 7% to $5.4 billion, while investment banking fees fell 5% to $2.3 billion.
Background
JPMorgan Chase reported fourth-quarter results that topped Wall Street expectations, driven by strong performance in its trading business. Higher revenue from equities and fixed income trading helped the largest U.S. bank overcome a one-time charge linked to the Apple Card portfolio deal.
For the quarter, JPMorgan posted adjusted earnings of $5.23 per share, beating analyst estimates of $5. Revenue came in at $46.77 billion, also above expectations. Reported profit declined 7% to $13.03 billion due to a previously announced $2.2 billion reserve tied to the takeover of the Apple Card loan portfolio from Goldman Sachs. Excluding this charge, earnings comfortably exceeded forecasts.
Total revenue rose 7% from a year earlier, supported by a similar rise in net interest income, which reached $25.1 billion. The bank benefited from steady lending activity and stable credit conditions.
Trading was the clear bright spot. Equities trading revenue jumped 40% to $2.9 billion, far above estimates, helped by strong demand from hedge fund clients. Fixed income trading revenue also increased, rising 7% to $5.4 billion, reflecting healthy market activity.
Investment banking reported softer results, with fees declining 5% to $2.3 billion, as deal activity remained uneven. Despite this, overall performance reflected a favorable environment for large banks, supported by active markets, easing rates and solid consumer spending.
Chief Executive Jamie Dimon said the U.S. economy remains resilient, with consumers continuing to spend and businesses staying generally healthy. He added that the bank remains alert to risks such as global tensions, inflation pressures and high asset prices.
Looking ahead, JPMorgan expects full-year 2026 net interest income of about $103 billion, depending on market conditions. The results set a positive tone as other major U.S. banks prepare to report their earnings.
