On Tuesday, JPMorgan Chase & Co. (NYSE:JPM) kicked off the earnings season with its fourth-quarter 2025 report. It clocked a net income of $13.0 billion, or $4.63 per share, down 7% year over year (Y/Y).
The adjusted earnings per share were $5.23, beating the $4.92 analyst estimate. 60 cents difference pertains to the $2.2 billion credit reserve established for the forward purchase commitment of the Apple credit card (NASDAQ:AAPL) portfolio.
Earnings Details
Managed net revenue of $46.8 billion, topped expectations of $46.02 billion.
Net interest income (excluding Markets) reached $23.9 billion, up 4% Y/Y, driven by higher deposit balances and increased revolving balances in Card Services, partly offset by lower interest rates.
Also, noninterest revenue (excluding Markets) rose 7% Y/Y to $14.7 billion, fueled by higher asset management fees in AWM and CCB, increased auto operating lease income, and higher Payments fees.
Markets revenue grew 17% Y/Y to $8.2 billion.
The firm posted a return on equity (ROE) of 17% and a return on tangible common equity (ROTCE) of 20% for fiscal year 2025 and 15% and 18% respectively, for the fourth quarter.
Cash and marketable securities totaled $1.5 trillion. Average loans increased 9% Y/Y and 3% sequentially, while average deposits rose 6% Y/Y and 2% sequentially.
The provision for credit losses was $4.7 billion. Net charge-offs were $2.5 billion, up $150 million, predominantly driven by Wholesale. The net reserve build was $2.1 billion, reflecting a $2.2 billion reserve established for the forward purchase commitment of the Apple credit card portfolio.
Management Commentary
Chairman and CEO Jamie Dimon said, “Each line of business performed well. This year, we opened 1.7 million net new checking accounts and 10.4 million new credit card accounts, and we also grew wealth management households to over 3 million. Looking ahead, we are excited to become the new issuer of the Apple Card. Finally, in AWM, revenue rose 13% in the quarter to a record $6.5 billion. More impressively, client asset net inflows totaled $553 billion for the year, helping drive client assets to over $7 trillion.”
“Looking ahead, we remain committed to investing our capital to drive future growth, and the Apple Card is one example of patient and thoughtful deployment of our excess capital into attractive opportunities.”
“The U.S. economy has remained resilient. While labor markets have softened, conditions do not appear to be worsening. Meanwhile, consumers continue to spend, and businesses generally remain healthy. These conditions could persist for some time, particularly with ongoing fiscal stimulus, the benefits of deregulation and the Fed’s recent monetary policy.”
Balance Sheet & Liquidity
The bank maintained a strong balance sheet, ending the quarter with a Common Equity Tier 1 ratio of 14.5% under the Standardized approach and 14.1% under the Advanced approach.
Total loss-absorbing capacity stood at $564 billion, standardized risk-weighted assets were $2.0 trillion, and the supplementary leverage ratio was 5.8%.
Credit costs were $4.7 billion, including $2.5 billion of net charge-offs and a $2.1 billion net reserve build, driven mainly by Wholesale and Card Services.
Book value per share increased 9% Y/Y to $126.99, and tangible book value per share rose 11% Y/Y to $107.56.
Segment Performance
In Consumer & Community Banking (CCB), net income fell 19% Y/Y to $3.6 billion with 6% Y/Y revenue growth to $19.4 billion.
Card Services & Auto net revenue rose 5% Y/Y to $7.3 billion, led by higher Card Services net interest income from increased revolving balances and higher auto operating lease income.
Debit and credit card sales volume up 7% and active mobile customers up 7%.
The Commercial & Investment Bank (CIB) earned net income of $7.3 billion, up 10% Y/Y. Revenue increased 10% Y/Y to $19.4 billion, led by Markets and Securities Services, which grew 17% Y/Y to $9.7 billion.
Fixed Income Markets revenue rose 7%, and Equity Markets surged 40% Y/Y. Investment Banking fees declined 5% Y/Y to $2.30 billion, maintaining JPMorgan’s global ranking as No. 1 with an 8.4% wallet share.
Asset & Wealth Management reported net income of $1.8 billion, up 19% Y/Y, on revenue of $6.5 billion, up 13%. Assets under management reached $4.8 trillion, an 18% Y/Y increase, while client assets totaled $7.1 trillion, up 20% Y/Y.
The firm returned $4.1 billion in common dividends, or $1.50 per share, and $7.9 billion in share repurchases.
Outlook
Looking ahead, JPMorgan expects fiscal 2026 net interest income of about $103 billion and net interest income excluding Markets of about $95 billion.
The firm also projects a Card Services net charge-off rate near 3.4% for the fiscal year 2026.
JPM Price Action: JPMorgan Chase shares were up 0.29% at $325.43 during premarket trading on Tuesday. The stock is approaching its 52-week high of $337.25, according to Benzinga Pro data.
Photo: lev radin via Shutterstock
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