JPMorgan (JPM.US) Q3 revenue and EPS below expectations, fixed income trading decline drags performance

According to Jinzhong Finance APP, JPMorgan (JPM.US) released its financial report for the third quarter of 2026 before the US market opened on October 13. Revenue for the quarter was $50.907 billion, an increase of 8% year-on-year, but lower than market expectations; adjusted earnings per share were $5.75, also below market expectations. Net profit was $15.305 billion, up 6% year-on-year.

The underperformance was mainly due to a decline in fixed income trading income and increased costs. Markets revenue for the quarter was $10.3 billion, up 15% year-on-year; equity trading income was $4.954 billion, a substantial increase of 49% year-on-year; fixed income trading income was $5.366 billion, down 4% year-on-year, and significantly lower than the market expectation of around $6 billion. Non-interest expenses were $27.295 billion, up 12% year-on-year, growing faster than revenue; non-interest income was $23.776 billion, up 3% year-on-year; net interest income was $27.1 billion, up 13% year-on-year.

By business segment: Consumer & Community Banking (CCB) reported net revenue of $21.171 billion, up 9% year-on-year, and net profit of $5.67 billion, up 13% year-on-year. The card business net charge-off rate fell to 2.91% (compared to 3.15% in the same period last year), and more than 650,000 net new checking accounts were opened during the quarter. Corporate & Investment Bank (CIB) reported net revenue of $22.734 billion, up 14% year-on-year, and net profit of $8.247 billion, up 20% year-on-year; banking and payments revenue was $10.958 billion, up 16%, and investment banking fees were $3 billion, up 14%. Asset & Wealth Management (AWM) reported net revenue of $6.909 billion, up 14% year-on-year, and net profit of $1.843 billion, with net client asset inflows of $263 billion. The corporate segment had a net loss of $455 million, mainly due to the above-mentioned securities investment losses.

In terms of asset quality, credit loss provisions for the quarter were $2.743 billion, lower than $3.403 billion in the same period last year; net charge-offs were $2.2 billion, a decrease of $389 million year-on-year, mainly from wholesale business; net provision additions were $539 million, compared to $810 million last year. In terms of capital, the standardized CET1 ratio was 13.9%, book value per share was $132.30, up 6% year-on-year. The quarterly common stock dividend was $1.65 per share, with net share buybacks of $664 million.

JPMorgan Chairman and CEO Dimon stated that all business lines performed well, but “huge fiscal deficits, sticky inflation, elevated asset prices, rising interest rates, and geopolitical conditions” continue to evolve. These forces are “perhaps manageable,” but the company “is prepared for a wide range of outcomes.”

After the financial report was released, as of the time of writing, JPMorgan's share price was down about 2.4% in premarket trading.