JPMorgan Chase has kicked off the bank earnings season by exceeding Wall Street expectations for the fourth quarter of 2025, primarily driven by a significant boost in trading revenue. The financial giant reported adjusted earnings of $5.23 per share, surpassing the 5.00 consensus estimate.
The firm’s reported net income of $13.0 billion represented a 7% decline compared to the previous year. This dip was largely attributed to a pre-announced $2.2 billion credit reserve established for the bank’s upcoming takeover of the Apple Card loan portfolio from Goldman Sachs. Without this one-time 60-cent-per-share impact, the bank’s profit would have reached $14.7 billion.
Performance across divisions was varied. The bank’s equities trading revenue soared by 40% to $2.9 billion, driven by high demand from hedge fund clients. Fixed-income trading also performed well, increasing 7% to $5.4 billion. Conversely, investment banking fees disappointed, falling 5% to $2.3 billion, which was approximately $210 million below analyst predictions.
CEO Jamie Dimon characterized the U.S. economy as “resilient,” highlighting steady consumer spending and healthy business conditions. However, he maintained a cautious stance, warning that markets may be underestimating “potential hazards,” such as geopolitical tensions, persistent inflation, and elevated asset prices.
Looking toward 2026, JPMorgan provided a target for net interest income of roughly $103 billion, though executives noted this figure remains highly dependent on market fluctuations. As the bank continues to integrate the Apple Card partnership, analysts remain focused on the sustainability of Wall Street dealmaking and any potential softening in the labor market.
To put this in perspective, JPMorgan’s diverse revenue streams acted like a well-balanced investment portfolio: while the investment banking “stock” dipped, the high-performing trading “assets” more than compensated for the loss.
