JPMorgan Chase kicked off the fourth‑quarter earnings season with a rare miss, as weakness in debt underwriting and investment banking fees weighed on results.
The largest U.S. bank reported earnings per share of $4.63, missing analyst estimates of $4.97. Net income fell 7% year over year to $13.0 billion, while adjusted revenue of $46.77 billion beat expectations.
The shortfall came from investment banking, where revenue declined unexpectedly. Investment banking fees fell 5%, driven by a surprise drop in debt underwriting. Debt underwriting revenue slipped to $898 million, well below expectations of about $1.1 billion.
In contrast, trading revenue was a bright spot. Markets revenue surged 17% to $8.2 billion, with strength across both equities and fixed income. Equities trading jumped 40%, while fixed‑income trading rose more than 7% from a year earlier.
The bank also posted a sharp increase in credit costs. Loan‑loss reserves rose to $2.1 billion, the highest level since the pandemic, largely tied to a forward purchase commitment related to its Apple credit card business. Total credit costs reached $4.7 billion.
Net interest income remained solid. NII rose 7% year over year, supported by loan growth and higher balances, though partially offset by lower interest rates and rising deposit costs.
CEO Jamie Dimon said the U.S. economy remains resilient, with consumers continuing to spend and businesses staying healthy. However, he warned markets may be underestimating risks tied to geopolitics, inflation, and elevated asset prices.
Looking ahead, JPMorgan reiterated its 2026 guidance, projecting about $103 billion in net interest income and $105 billion in expenses, helping stabilize investor reaction after an initially negative premarket response.
The bank’s mixed report set an uncertain tone for earnings season, with investors now watching whether weakness in capital markets activity spreads to other major lenders reporting later this week.
