Ask about the sustainability of strong investment banking and markets performance and the firm's stance on market risk.

Jeremy Barnum bifurcated IB and Markets. IB fees were strong but not peak, with some pull-forward but a robust pipeline. Equities strength was exceptional and hard to repeat, but the overall environment is supportive. He noted the market is "extremely risk on" and JPM balances client support with caution. “On the market side, I would probably separate between fixed income and equities. I mean all the normal caveats like we don't know, anything can happen. And clearly, markets revenues in general, have been quite elevated and strong for some time, although as we pointed out, that also is associated with much more financial resource deployment and support of our clients. But I think the particular set of things that happened in equities this quarter, so a little bit hard to imagine that being repeated.”

Inquire about the factors behind the upward revision to NII ex-Markets and why Markets NII is guided higher despite higher rates.

Jeremy Barnum explained the NII ex-Markets revision is primarily due to higher deposit balances (wholesale and consumer) and slightly higher rates. For Markets NII, the increase is driven by changes in balance sheet composition, specifically expecting lower noninterest-bearing assets, which outweighs the liability sensitivity to higher rates. “Just mechanically, in terms of the drivers of the upward revision, the biggest single factor is deposit balances, I would say, across both wholesale and consumer both sort of the overall quantum of it, but also like mix shift inside of that in favor of slightly higher margin overall. And then rates are like a little bit higher than when we previously guided, both in the short end and in the back end.”

Ask about the negative operating leverage year-to-date and the potential for expense growth to slow, as well as any new developments on Basel III.

Jamie Dimon stated operating leverage was positive, and that aggressive investment is key, not slowing expense growth for its own sake. Jeremy clarified that most of the expense guidance increase is due to strong revenue performance. Jamie then reiterated concerns about Basel III Endgame, specifically calling for removal of double-counted risk capital and G-SIB adjustments. “I'm just going to answer that by saying when you have great returns and very good margins, which actually went up this quarter, not down, the notion that somehow you can further increase your operating leverage is a crazy notion -- we don't have that. (Jamie Dimon) and They have -- they should get rid of the double accounted operating risk capital. They should get rid of double count in market risk capital.”

JPM

JPMorgan Chase (JPM) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Jul 14, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Full-year 2026 NII ex-markets	about $96.5 billion high materiality	FY26	High
Full-year 2026 Total NII	approximately $105.5 billion high materiality	FY26	High
Full-year 2026 Adjusted Expense	about $107.5 billion high materiality	FY26	High
Full-year 2026 Card net charge-off rate	approximately 3.2% medium materiality	FY26	High
Quarterly dividend	$1.65 per share high materiality	Q3 · FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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 million	8%	—	—
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 billion	27%	—	—
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 billion	19%	—	38% pretax margin
Corporate Includes significant items noted in the presentation. Net income: $4.2 billion	$6 billion	—	—	—

JPM operating KPIs by quarter

JPM operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Sep 2026 Q3 FY26	Change vs prior quarter
Return on tangible common equity (ROTCE)	21% The firm reported net income of $14 billion, EPS of $4.81 on revenue of $43.7 billion, with an ROTCE of 21%. Source: earnings call transcript	21% The firm reported net income of $14.6 billion, EPS of $5.07 on revenue of $46 billion with an ROTCE of 21%. Source: earnings call transcript	—	20% So with that, turning to this quarter's results, the firm reported net income of $14.4 billion and EPS of $5.07 with an ROTCE of 20%. Source: earnings call transcript	18% This quarter, the firm reported net income of $13 billion and EPS of $4.63 with an ROTCE of 18%. Source: earnings call transcript	23% This quarter, the firm reported net income of $16.5 billion and EPS of $5.94 with an ROTC of 23%. Source: earnings call transcript	23% Including the significant items noted on the page, the firm delivered net income of $16.9 billion, EPS of $6.14 and an ROTCE of 23%. Source: earnings call transcript	20% The firm delivered net income of $15.3 billion, EPS of $5.57 and an ROTCE of 20%. Source: earnings call transcript	-3 pt
Common equity tier 1 ratio (CET1)	15.7% We ended the quarter with a CET1 ratio of 15.7%, up 40 basis points versus the prior quarter, as net income and lower RWA were largely offset by both OCI losses and capital distributions, which included $4 billion of net common share repurchases this quarter. Source: earnings call transcript	15.4% We ended the quarter with a CET1 ratio of 15.4%, down 30 basis points versus the prior quarter, as net income and OCI gains were more than offset by capital distributions and higher RWA. Source: earnings call transcript	15% We ended the quarter with a CET1 ratio of 15%, down 40 basis points versus the prior quarter as net income was more than offset by capital distributions and higher RWA. Source: earnings call transcript	14.8% And in terms of the balance sheet, we ended the quarter with a CET1 ratio of 14.8%, down 30 basis points versus the prior quarter. Source: earnings call transcript	14.5% And in terms of the balance sheet, we ended the quarter with a standardized CET1 ratio of 14.5%, down 30 basis points versus the prior quarter, as net income was more than offset by capital distributions and higher RWA. Source: earnings call transcript	14.3% 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. Source: earnings call transcript	14.1% And in terms of the balance sheet, we ended the quarter with a standardized CET1 ratio of 14.1%, down 20 basis points versus the prior quarter as net income was more than offset by higher RWA and capital distributions. Source: earnings call transcript	13.9% In terms of the balance sheet, we ended the quarter with a standardized CET1 ratio of 13.9%, down 30 basis points versus the prior quarter as net income was more than offset by OCI losses, higher RWA and capital distributions. Source: earnings call transcript	-0.2 pt
Long-term net inflows Asset & Wealth Management	$76B Long-term net inflows were $76 billion for the quarter, positive across all asset classes. Source: earnings call transcript	$54B Long-term net inflows were $54 billion for the quarter, primarily driven by equity and fixed income. Source: earnings call transcript	$31B Long-term net inflows were $31 billion for the quarter led by fixed income and equities. Source: earnings call transcript	$72B Long-term net inflows were $72 billion for the quarter, led by fixed income and equities. Source: earnings call transcript	$52B Long-term net inflows were $52 billion for the quarter and $209 billion for the full year, positive across all channels, regions and asset classes. Source: earnings call transcript	$54B Long-term net inflows were $54 billion with continued strength across fixed income, equity and multi-asset. Source: earnings call transcript	$50B Long-term net inflows were $50 billion with continued strength across fixed income and equity. Source: earnings call transcript	$51B Long-term net inflows were $51 billion, largely driven by continued strength in fixed income. Source: earnings call transcript	+2%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
Sapphire Preferred card	update	June
Investment products	expansion	—
Smart Cash tool	launch	this year

Risks & headwinds

Expense Growth Q2 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-Forward Q2 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 Acceleration Future

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 Standards Current

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 Exuberance Current

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

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.