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    JPM
    Earnings call· Jun 2026(Q2 FY26)

    JPMORGAN CHASE & Q2 FY26 earnings call JPM

    Jul 14, 2026 Source

    Executive summary

    JPMorgan Chase & Co. Q2 FY26 — Strong Performance and Upward NII Outlook

    JPMorgan Chase delivered a strong second quarter, marked by robust revenue growth across its CIB and AWM segments, leading to a 23% ROTCE. The company raised its full-year NII and expense guidance, reflecting higher-than-expected activity levels and resilient consumer credit performance. Management highlighted continued investment in organic growth and technology, while also addressing regulatory capital reforms and the potential impact of AI on efficiency.

    Highlights

    5

    • The firm delivered net income of $16.9 billion, EPS of $6.14, and an ROTCE of 23% (excluding significant items).

    • Revenue was up 15% year-on-year (excluding significant items), driven by markets, asset management, and investment banking.

    • Investment Banking fees surged 30% year-on-year, with Equities revenue exceptionally strong, up 86% year-on-year.

    • Full-year 2026 NII ex-markets outlook was raised to about $96.5 billion, and total NII to approximately $105.5 billion.

    • The quarterly dividend is set to increase to $1.65 per share effective in the third quarter.

    Concerns

    5

    • Expenses of $27.3 billion were up 15% year-on-year, largely due to volume and revenue-related expenses, front office hiring, and labor inflation.

    • The standardized CET1 ratio decreased by 20 basis points quarter-on-quarter to 14.1%, primarily due to higher RWA and capital distributions.

    • Standardized RWA increased by approximately $103 billion, driven by financing in the markets business and traditional lending.

    • Management noted some pull-forward in investment banking activity, raising questions about the sustainability of current activity levels.

    • There is uncertainty regarding the timing of deposit beta acceleration if the rate environment becomes significantly more hawkish.

    Guidance & targets

    5
    CategoryTargetConfidence
    Full-year 2026 NII ex-markets
    about $96.5 billion
    high materiality
    High
    Full-year 2026 Total NII
    approximately $105.5 billion
    high materiality
    High
    Full-year 2026 Adjusted Expense
    about $107.5 billion
    high materiality
    High
    Full-year 2026 Card net charge-off rate
    approximately 3.2%
    medium materiality
    High
    Quarterly dividend
    $1.65 per share
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Consumer & Community Banking (CCB)
    Revenue growth predominantly driven by higher card NII on higher revolving balances, higher operating lease income in auto, and asset management fees in wealth management. Consumers and small businesses show resilience.
    Net income: $5.3 billionAverage deposits: up 3% YoYAverage deposits: up 2% QoQNet new checking account growth: over 500,000 accountsClient investment assets: up 21% YoY
    		$20.3 million8%——
    Corporate & Investment Bank (CIB)
    Strong performance across businesses, with double-digit growth in all IB products, particularly equity underwriting. Markets strength across products and regions, with strong flows and favorable trading.
    Net income: $9.7 millionIB fees: up 30% YoYFixed Income Markets revenue: up 6% YoYEquities Markets revenue: up 86% YoY
    		$24.9 billion27%——
    Asset & Wealth Management (AWM)
    Revenue driven by growth in management fees on higher average market levels and strong net inflows, as well as investment valuation gains, higher loan balances, and higher brokerage activity.
    Net income: $2 billionLong-term net inflows: $50 billionAUM: $5.1 trillionAUM growth: up 18% YoYClient assets: $7.7 trillionClient assets growth: up 19% YoY
    		$6.9 billion19%—38% pretax margin
    Corporate
    Includes significant items noted in the presentation.
    Net income: $4.2 billion
    		$6 billion———

    Operational metrics

    7
    Standardized RWA increase
    $103 billionQoQ
    Q2 FY26

    Largely driven by increases in financing across markets business and growth in traditional lending.

    Equity allocation to CIB
    increased
    Q2 FY26

    Increased this quarter due to growth of supporting clients and RWA.

    AI CapEx (industry-wide)
    $700 billionup from $400 billion in CY25
    CY26

    Reflects industry projections for AI-related capital expenditure.

    Global deficits
    4.5% or 5%
    current

    Very big number competing for the same capital.

    AI use cases
    almost 1,000
    current

    Across risk, fraud, marketing, hedging, prospecting, idea generation, document reading.

    AI job reduction
    30-40%
    past

    Most of those people offered jobs elsewhere.

    Chase UK customers
    almost 3 million or 2.5 million
    current

    Reflects growth in the UK digital banking venture.

    Industry KPIs

    12
    MetricValueDetails
    Loans—
    Deposits—
    Rotce ROE23%%
    Cet1 ratio14.1%%
    Capital returns$1.65USD
    Fee income lines—
    Allowance reserves$149 millionUSD
    Net interest income$105.5 billionUSD
    Net charge offs npls$2.4 billionUSD
    Provision for credit losses$2.5 billionUSD
    Private credit nbfi exposure—
    Efficiency ratio operating leverage—

    Product announcements

    3
    ProductTypeDetails
    Sapphire Preferred cardupdate
    Investment productsexpansion
    Smart Cash toollaunch

    Risks & headwinds

    6
    Expense GrowthQ2 FY26

    Expenses of $27.3 billion, up 15% YoY

    Mitigation: Primarily driven by volume and revenue-related expenses, front office hiring, and labor inflation; aggressive investment for future returns while delivering exceptional current returns.

    Regulatory Capital Burden (Basel III Endgame/G-SIB)Ongoing

    Changes to short-term wholesale funding rules disproportionately burden banks with both markets and banking businesses.

    Mitigation: Management advocating for clearer policy objectives, removal of double-counted operating/market risk capital, and G-SIB adjustments to avoid unintended consequences and ensure fairness.

    Investment Banking Pull-ForwardQ2 FY26

    Some pull-forward of pipeline activity and large deals contributed to strong Q2 IB fees.

    Mitigation: Pipeline remains robust, and current activity levels are encouraging more activity, suggesting healthy levels could continue despite the pull-forward.

    Deposit Beta AccelerationFuture

    Potential for significant change in deposit behavior (volume/betas) if rates continue to rise significantly.

    Mitigation: Stress testing includes scenarios for accelerated rate paid, but the exact timing of this effect is uncertain; management monitors competitive dynamics and the full value proposition of the deposit franchise.

    Credit Underwriting StandardsCurrent

    Mild weakening observed across the spectrum (e.g., assumptions on revenue growth, add-back of expenses, more PIK, weaker covenants, rollover risk).

    Mitigation: JPMorgan maintains its own risk appetite and skeptical view of the environment, holding the line on underwriting standards and flagging particularly important situations.

    Market ExuberanceCurrent

    Current market environment described as "very healthy active exuberant" with very high prices and volumes.

    Mitigation: JPMorgan benefits from this environment but acknowledges uncertainty about its duration; the firm focuses on serving clients and managing risk appropriately.

    Q&A highlights

    8

    Inquire about the recent management changes, elevation of co-Presidents, and implications for Jamie Dimon's tenure.

    Jamie Dimon stated the timing for his tenure remains essentially the same, as previously communicated, and that the co-President appointments are part of preparing future leaders. He wished Marianne Lake well in her retirement.

    “No, it's exactly -- I think we try to be totally clear in the press release, which is what Marian is an exceptional individual is a human being as a leader and is obviously an executive and but the Board made a decision to go ahead with making 2 co-presidents, which we'll be preparing them to do far more at the company to be prepared hasn't changed the timetable or anything, and obviously wish Marianne the best. As a result, she decided he mentioned how about the plan that she'd rather retire than stay here. So that's it. No mystery.”

    asked by Ken Houston · answered by James Dimon

    2 min read6 chapters

    Detailed Narrative

    01

    Robust CIB Performance and Market Dynamics

    JPMorgan's Corporate & Investment Bank delivered strong results, with IB fees surging 30% year-over-year, driven by double-digit growth across all products, particularly equity underwriting. Markets revenue also saw significant strength, with equities up 86% year-over-year due to dynamic market conditions and high client activity. While some pull-forward📎 of activity was noted, the pipeline remains robust, suggesting healthy activity levels could continue.

    02

    Resilient Consumer and Deposit Franchise

    The Consumer & Community Banking segment reported an 8% year-over-year revenue increase, supported by higher card NII and strong net new checking account growth of over 500,000. Average deposits in CCB were up 3% year-over-year, and wholesale deposit growth was also strong. Management noted continued consumer resilience despite inflation, with delinquencies lower than expected across FICO scores.

    03

    Capital Management and Regulatory Advocacy

    The firm's standardized CET1 ratio stood at 14.1%, with a $103 billion increase in RWA primarily from markets financing and traditional lending. Management expressed concerns regarding proposed Basel III Endgame changes, particularly the impact of short-term wholesale funding rules on competitive dynamics, advocating for regulatory clarity and "doing the numbers right" to avoid unintended consequences.

    04

    Strategic Investments and AI Integration

    JPMorgan continues its aggressive investment strategy across technology, marketing, and branch expansion, emphasizing that these investments generate strong future returns. The company is actively exploring AI, with nearly 1,000 use cases identified across risk, fraud, marketing, and operations, anticipating significant efficiency gains and potential workforce retraining, while acknowledging that benefits ultimately accrue to customers.

    05

    Leadership Succession and Organizational Strength

    CEO Jamie Dimon addressed recent management changes, including the appointment of two co-Presidents, reaffirming the Board's commitment to leadership development and the company's deep bench of talent. He emphasized the importance of broad experience across the firm for future leaders and expressed confidence in the executive team's ability to navigate future challenges.

    06

    Capital Allocation and Growth Opportunities

    While acknowledging the current "exuberant" market, management discussed its capital allocation strategy, prioritizing organic growth opportunities across its businesses, including European consumer banking expansion (Chase UK and Germany) and new product development like the "Smart Cash" tool. The firm aims to deploy capital at a 17% return, balancing buybacks with strategic investments and potential inorganic opportunities.

    AI-generated summary of the company’s earnings call. Not investment advice.