JPMorgan Chase crushed first-quarter expectations.
The largest U.S. bank earned $4.81 per share on $41.5 billion in revenue. Analysts had projected $4.65.
Investment banking revenue soared 18% to $2.4 billion. Robust debt underwriting and advisory fees drove the gain. JPMorgan maintained its lead in global investment banking fees.
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Revenue | $41.5B | $38.7B | +7.2% |
| Net income | $13.8B | $12.6B | +9.5% |
| EPS | $4.81 | $4.38 | +9.8% |
| ROE | 15.2% | 14.8% | +40 bps |
Net interest income stabilizes
Net interest income totaled $22.9 billion in the quarter. That marks a modest 2% year-over-year decline—and it showed stabilization versus Q4 2025.
Deposit costs have risen as customers shift funds into higher-yielding accounts. But loan demand remains healthy. Credit card balances grew 6% year over year. Mortgage originations increased 12%.
Management expects full-year NII of approximately $91 billion. The Fed holding steady should help margins.
Credit costs edge higher but remain manageable
Credit costs totaled $1.9 billion, up from $1.7 billion in the prior year. The bank increased reserves for certain commercial real estate segments while maintaining conservative underwriting elsewhere.
Net charge-offs remained contained at 48 basis points of average loans. That compares to 44 basis points in the previous year.
Management characterized credit trends as normalizing rather than deteriorating.
Commercial real estate exposure remains manageable despite concerns. Office loan delinquencies ticked higher but represent less than 3% of total loans. Multifamily and industrial properties continue performing well.
| Bank | Revenue | EPS (actual) | EPS (estimate) | Beat/miss |
|---|---|---|---|---|
| JPMorgan | $41.5B | $4.81 | $4.65 | +3.4% |
| Bank of America | $30.3B | $1.11 | $1.07 | +3.7% |
| Citigroup | $20.8B | $2.12 | $2.04 | +3.9% |
| Wells Fargo | $21.2B | $1.35 | $1.31 | +3.1% |
Capital markets rebound lifts deal flow
The first quarter saw renewed capital markets activity. IPO volumes increased 45% year over year while debt issuance rose 12%. The bank maintained its leading market position.
Trading revenue totaled $6.8 billion, essentially flat versus the prior year. Fixed income trading showed strength in rates products while equity trading faced headwinds from lower volatility.
Asset management revenue grew 8% to $3.2 billion on positive net inflows.
Dividend and buyback outlook
JPMorgan maintained its quarterly dividend of $1.25 per share. That represents a 2.3% yield at current prices. The bank has authorization to repurchase up to $15 billion of common stock through June 2026.
Capital ratios remain well above regulatory requirements. The common equity tier 1 ratio stood at 13.4%, providing substantial buffer.
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