Including the significant items noted on the page, the firm delivered net income of $16.9 billion, EPS of $6.14, and an ROTCE of 23%. Expenses of $27.3 billion were up 15% year-on-year, largely driven by volume and revenue-related expense, as well as growth in front office hiring and labor inflation. This quarter's standardized RWA increase of approximately $103 billion is largely driven by increases in financing across our markets business, as well as growth in traditional lending. As you saw in our CCAR press release in June, the board intends to increase the quarterly dividend to $1.65 per share, effective in the third quarter.

Consumers and small businesses continue to show resilience despite elevated gas prices and inflation, with higher tax refunds and a solid labor market contributing to strong spend growth. In banking and wealth management, average deposits were up 3% year-on-year and 2% quarter-on-quarter, driven by strong net new checking account growth of over 500,000 accounts this quarter. Revenue of $24.9 billion was up 27% year-on-year, driven by strong performance across the businesses. IB fees were up 30% year-on-year, reflecting double-digit growth across all products, with particularly strong performance in equity underwriting.

In markets, fixed income was up 6% year-on-year, with solid performance in credit, currencies in emerging markets, and rates, partially offset by lower revenue and commodities. The equities business delivered an exceptionally strong quarter, with revenue up 86% year-on-year, reflecting the highly dynamic market conditions. Turning to asset and wealth management, AWM reported net income of $2 billion, with pre-tax margin of 38%. Before turning to the outlook, corporate reported net income of $4.2 billion on revenue of $6 billion, which includes the significant items noted in the presentation.

What went well
  • Delivered net income of $16.9 billion, EPS of $6.14, and a 23% ROTCE, with revenue up 15% year-on-year excluding significant items.
  • CIB revenue rose 27% year-on-year to $24.9 billion, led by equities revenue up 86% on exceptionally dynamic conditions and IB fees up 30% with double-digit growth across all products.
  • AWM revenue grew 19% year-on-year to $6.9 billion with long-term net inflows of $50 billion, AUM up 18% to $5.1 trillion, and a 38% pre-tax margin.
  • CCB revenue was up 8% to $20.3 billion, with over 500,000 net new checking accounts and client investment assets up 21% year-on-year.
  • Better-than-expected consumer credit performance let the firm lower its full-year card net charge-off rate outlook to approximately 3.2%.
  • Raised full-year NII guidance, with NII ex-Markets now about $96.5 billion and total NII about $105.5 billion.
What went wrong
  • Expenses of $27.3 billion were up 15% year-on-year on volume/revenue-related costs, front office hiring, and labor inflation, and the firm raised its full-year adjusted expense outlook by $2.5 billion to about $107.5 billion.
  • CET1 ratio fell 20 basis points to 14.1% as net income was more than offset by higher RWA and capital distributions, with standardized RWA up approximately $103 billion.
  • Fixed income was up only 6% year-on-year, held back by lower revenue in commodities.
  • Management acknowledged year-to-date adjusted operating leverage was negative, though it argued marginal returns on incremental revenue were strong.
  • Credit costs were $2.5 billion, including net charge-offs of $2.4 billion and a net reserve build of $149 million.

Guidance Changes

MetricPeriodCurrent guidance
NII ex-MarketsFY2026about $96.5 billion (raised)
Total NIIFY2026approximately $105.5 billion (raised)
Markets NIIFY2026about $9 billion (raised)
Adjusted expenseFY2026about $107.5 billion (raised)
Card net charge-off rateFY2026approximately 3.2% (lowered)

Performance Breakdown

MetricYoYNote
Total revenue (ex significant items) +15% Predominantly markets revenue, higher asset management fees in AWM and CCB, higher investment banking revenue, and higher deposit and loan balances, partially offset by lower rates.
Expenses +15% Volume and revenue-related expense, growth in front office hiring, and labor inflation.
CCB revenue +8% Higher card NII on higher revolving balances, higher operating lease income in auto, and asset management fees in wealth management.
CIB revenue +27% Strong performance across the businesses, with IB fees up 30% and equities up 86%.
Equities revenue +86% Highly dynamic market conditions with strength across products and regions, strong flows, and Prime benefiting from higher client activity and balances.
Fixed income revenue +6% Solid performance in credit, currencies in emerging markets, and rates, partially offset by lower revenue in commodities.
AWM revenue +19% Higher management fees on higher average market levels and strong net inflows, plus investment valuation gains, higher loan balances, and higher brokerage activity.

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
Investment banking and capital markets activityHealthy pipelines with activity resilient despite Middle East uncertaintyExceptionally strong quarter with a robust pipeline that management says is itself begetting more activity, though some pull-forward is acknowledgedImproving
Consumer healthResilient consumer, credit tied to a strong labor marketConsumers and small businesses resilient with strong spend, delinquencies below expectations, and little support for the K-shape narrativeStable
Expense growth and operating leverageMeaningful expense growth reflecting investment and revenue-related costsGuidance raised $2.5B, of which $1.5B already booked against $6.5B of first-half markets/banking outperformanceIncreasing
AI investmentOngoing investment with roughly 1,000 use casesRoughly 1,000 use cases with about 50 important ones; benefits expected to accrue mainly to customers, with token expense a small but accelerating itemIncreasing
Capital deployment and buybacksPrefer to deploy excess capital organically rather than buy back stock at high pricesReiterated preference to deploy roughly $40 billion of excess organically at ~17% returns, buy back less as price rises, and stay open to inorganic opportunitiesStable

Q&A Summary

How sustainable is the elevated level of activity across investment banking and markets?
Barnum separated IB fees, which were fine but not at peak and had some pull-forward and large-deal contribution while the pipeline stays robust, from equities, where the particular combination of effects this quarter is hard to imagine repeating even though the backdrop is supportive.
What drove the upward revision to NII ex-Markets and what does it imply for the exit rate?
Barnum said the biggest single factor is higher deposit balances across wholesale and consumer plus favorable mix, with a smaller contribution from slightly higher rates; the math implies a higher exit run rate in the central case.
Given negative year-to-date operating leverage, could AI let expense growth slow and operating leverage return over the next few years?
Dimon said perpetual operating leverage is not a realistic goal, but a possible slowdown in expense growth could come in 2027 or 2028, and AI benefits will largely accrue to customers rather than expanding margins.
Why buy back stock at three times tangible book when conditions are strong?
Dimon agreed the firm prefers to deploy its roughly $40 billion of excess capital organically at a 17% return, buy back less as the price rises, and stay open-minded on inorganic opportunities, noting buybacks are an investment decision rather than returning money to shareholders.

More on Jpmorgan Chase & Co

Reported 2026-07-14 · figures from the Jpmorgan Chase & Co Q2 2026 earnings call.

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