2026 04 14 Earnings JPM Q1 Fy2026

Summary

JPMorgan Q1 2026: net income $16.5B, EPS $5.94, ROTCE 23%, revenue $50.5B +10% YoY. CIB drove the beat: IB fees +28%, fixed income +21%, equities +17%. Consumer and small business remain resilient despite market volatility. Key load-bearing chain: Basel III endgame G-SIB reproposal would add ~$20B capital to JPM specifically (more adverse than the Fed's average estimate for Category I/II banks), creating a durable headwind on JPM's ROE. AWM revenue $6.4B +11%, pretax margin 35%, driven by management fees on strong net inflows. Dimon's tone on macro: uncertainty has increased, but consumer spending growth remains above last year's pace.

Transcript

Jeremy Barnum (Chief Financial Officer): Thank you very much, and good morning, everyone. This quarter, the firm reported net income of $16.5 billion and EPS of $5.94, with an ROTCE of 23%. Revenue of $50.5 billion was up 10% year-on-year, primarily driven by higher Markets revenue, higher Asset Management and Investment Banking fees and higher NII, driven by the impact of balance sheet growth, predominantly offset by the impact of lower rates. Expenses of $26.9 billion were up 14% year-on-year, largely driven by higher compensation, including higher revenue-related compensation and growth in front office employees, as well as higher brokerage expense and distribution fees. The increase also reflects the absence of an FDIC special accrual release in the prior year.

And credit costs of $2.5 billion with net charge-offs of $2.3 billion and a net reserve build of $191 million. And in terms of the balance sheet, we ended the quarter with a standardized CET1 ratio of 14.3%, down 30 basis points versus the prior quarter as net income was more than offset by capital distributions and higher RWA. This quarter's standardized RWA is up $60 billion, primarily driven by the Markets business, reflecting higher client activity, seasonal effects and higher energy prices which resulted in higher RWA across market risk and credit risk ex lending.

Now let me spend a few minutes on the recently released Basel III endgame and G-SIB reproposals. I'll start by acknowledging that this has been a long journey and getting it done across multiple regulators and applied to the full set of U.S. banks is unquestionably a difficult task. With that said, we do have some concerns with elements of what's been put forward primarily with the G-SIB proposals. Our results are worse in each category, estimated RWA is higher, G-SIB is worse. And because our CCAR losses are below the floor, the Fed's reduction is not going to apply to us. The result is that under the proposed rules, our CET1 capital would increase around 4%, while the Fed's estimate for large banks is about a 5% reduction.

The net result is that we need to plan for 5.2% in 2028, a 70 basis point increase from the current 4.5% requirement, which, when combined with the RWA increase from the Basel III endgame NPR results in a total increase of about $20 billion of G-SIB capital based on our current balance sheet. This persistent miscalibration of the U.S. surcharge is obviously bad for international competitiveness. But more importantly, domestically, this means that the cost of credit from JPMorgan Chase to U.S. households and businesses is likely higher than it is from other domestic non-G-SIB banks.

CCB reported net income of $5 billion. Revenue of $19.6 billion was up 7% year-on-year, predominantly driven by higher Card NII and largely on higher revolving balances and higher operating lease income in Auto. Notwithstanding the recent volatility in market and gas prices based on our data, consumers and small businesses remain resilient with consumer spend growth continuing above last year's pace. Average deposits were up 2% year-on-year and quarter-on-quarter, driven by account growth and moderating yield-seeking flows. Client investment assets were up 18% year-on-year, driven by market performance and healthy net inflows. And in Home Lending, originations of $13.7 billion increased 46% year-on-year predominantly driven by refi performance.

The CIB reported net income of $9 billion. Revenue of $23.4 billion was up 19% year-on-year, driven by higher revenues across the businesses. IB fees were up 28% year-on-year, driven by strong performance across M&A and equity underwriting, partially offset by lower debt underwriting. Looking ahead, client engagement and pipelines remain healthy, but of course, developments in the Middle East could have an impact on deal execution and timing. In Markets, fixed income was up 21% year-on-year with strong performance across the businesses, partially offset by lower revenue in rates. Equities was up 17% from increased client activity.

Turning to Asset & Wealth Management. AWM reported net income of $1.8 billion with pretax margin of 35%. Revenue of $6.4 billion was up 11% year-on-year, predominantly driven by growth in management fees on strong net inflows and higher average market levels as well as higher brokerage activity.

Q&A — James Dimon on AI deposit product and competitive dynamics:

James Dimon: Yes. So it's a great question. And obviously, there's early stages for this particular product. So you have to look at it literally segment by segment, how people manage their money, how they want to manage their money. People are pretty astute at it, particularly the higher net worth. They have tons of choices. They often have money at many different places. And so the question for us is, how can we make it easier for them to manage their money in a way they're comfortable.

Most of you on this call, you have in your mind, how much days in a checking account and then you write a ticket to a money market fund or a deposit account, something like that. And that's all we're trying to do. And we provide great values to people. If you're a customer of JPMorgan, I remind people, if you have this product, you have ATMs, you've got branches, you've got advice, you have instant payment systems like Zelle. So we look at the whole basket, how we can do a better job for the client. And yes, it may squeeze some margin somewhere and create more competition somewhere, that's life.

Jeff Bezos always says, your margin is my opportunity. And I kind of agree with that. We're trying to look at the world from the point of view of the customer, what more can we do with them. And this is really early stages. And as you know, there's tons of competition out there for the money.

Jeremy Barnum: Yes, exactly. And the only thing I was going to add to that, it's sort of understandable that's just gotten attention because it has sort of AI in it, and it's kind of interesting. But as Jamie says, like competition for deposits has always been very intense. It continues to be intense and we have both external and internal competition from higher-yielding alternatives and people sort of optimize that and that's part of running the business.