JPM's Q3 Earnings Beat as IB & Trading Businesses Shine, NII View Up

Impressive trading and investment banking (IB) performance drove JPMorgan’s JPM third-quarter 2025 earnings of $5.07 per share. The bottom line handily surpassed the Zacks Consensus Estimate of $4.83.

Behind JPMorgan’s Q3 Headline Numbers

Markets revenues were impressive and exceeded management's expectations of growth in the high-teens percentage rate. The metric soared 25% to $8.9 billion. Specifically, fixed-income markets revenues jumped 21% to $5.6 billion, while equity markets numbers increased 33% to $3.3 billion. Our estimates for fixed-income and equity markets revenues were $5.37 billion and $2.9 billion, respectively.

Moreover, the IB business performance was far stronger than expected by management. Advisory fees rose 9%, with debt and equity underwriting fees growing 53% and 9%, respectively. Overall, total IB fees (in the Commercial & Investment Bank segment) were up 16% from the prior-year quarter to $2.63 billion. The company had projected IB fees to be up in the low double digits during the quarter.

The company recorded an increase in net interest income (NII), driven by higher yields and 7% year-over-year jump in total loans. Hence, management now expects NII to be almost $95.8 billion for this year, up from the prior target of $95.5 billion.

Among other positives, Consumer & Community Banking (CCB) average loan balances were up 1% year over year. Also, debit and credit card sales volume increased 9%. On the other hand, mortgage fees and related income fell 5% to $383 million. We had projected the metric to be $313.2 million.  

During the quarter, operating expenses rose. Management now expects adjusted non-interest expense to be $95.9 billion for this year, up from $95.5 billion targeted previously. Also, provisions increased during the quarter.

JPM’s Revenues Rise, Expenses Up

Net revenues, as reported, were $46.43 billion, up 9% year over year. The top line outpaced the Zacks Consensus Estimate of $44.86 billion. 

NII rose 2% year over year to $23.97 billion. Our estimate for NII was $24.09 billion.

Non-interest income jumped 17% to $22.46 billion. Our estimate for non-interest income was $19.03 billion.

Non-interest expenses (on a managed basis) were $24.28 billion, up 8% year over year. This was mainly due to higher compensation expenses, brokerage expense and distribution fees, marketing costs and auto lease depreciation. We had projected non-interest expenses to be $23.88 billion.

The performance of JPMorgan’s business segments, in terms of net income generation, was solid. The CIB, Asset & Wealth Management and CCB segments witnessed a rise in net income on a year-over-year basis. On the other hand, the Corporate segment recorded a fall in net income. Overall, net income grew 12% to $14.39 billion. We had projected net income to be $13.57 billion.

JPMorgan’s Credit Quality Worsens

Provision for credit losses was $3.4 billion, up 9% from the prior-year quarter. Our estimate for the metric was $2.64 billion.

Net charge-offs (NCOs) jumped 24% to $2.59 billion. Also, as of Sept. 30, 2025, non-performing assets (NPAs) were $10.64 billion, surging 23%.

JPM’s Capital Position Solid

Tier 1 capital ratio (estimated) was 15.8% at the third-quarter end, down from 16.4% in the prior-year quarter. Tier 1 common equity capital ratio (estimated) was 14.8%, down from 15.3%. Total capital ratio was 17.7% (estimated) compared with 18.2% a year ago.

Book value per share was $124.96 as of Sept. 30, 2025, compared with $115.15 a year ago. Tangible book value per common share was $105.7 at the end of September 2025, up from $96.42.

Update on JPMorgan’s Share Repurchases

During the reported quarter, JPMorgan repurchased 28 million shares for $8.32 billion.

Our Take on JPMorgan

New branch openings, strategic acquisitions, global expansion efforts and decent loan demand are likely to keep aiding JPMorgan’s revenues. Yet, as the rates decline, the company’s NII expansion pace is expected to slow down, while an improving lending scenario will offer some support. Weak asset quality and mounting expenses are concerns. 
 

JPMorgan Chase & Co. Price, Consensus and EPS Surprise

JPMorgan Chase & Co. price-consensus-eps-surprise-chart | JPMorgan Chase & Co. Quote

JPMorgan currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Dates & Expectations of JPM’s Peers

Bank of America BAC is slated to report third-quarter 2025 numbers on Oct. 15.

Over the past week, the Zacks Consensus Estimate for Bank of America’s quarterly earnings has been revised 1.1% upward to 94 cents. This indicates a 16.1% rise from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The PNC Financial Services Group PNC is also scheduled to announce third-quarter 2025 results on Oct. 15.

Over the past seven days, the Zacks Consensus Estimate for PNC Financial’s quarterly earnings has been revised upward to $4.05. This implies a 16.1% growth from the prior-year quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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