ii view: JP Morgan benefits from new tech boom
Offering investment banking advice and services to hundreds of US companies and with the bank itself taking an interest in quantum computing investments. Buy, sell, or hold?
14th October 2025 15:35
by Keith Bowman from interactive investor
Third-quarter results to the 30 September
- Revenue up 9% to $47.12 billion
- Earnings per share up 16% to $5.07
- Quarterly dividend of $1.50 per share, up from $1.40 paid in Q2
Chief executive Jamie Dimon said:
“While there have been some signs of a softening, particularly in job growth, the U.S. economy generally remained resilient.
“However, there continues to be a heightened degree of uncertainty stemming from complex geopolitical conditions, tariffs and trade uncertainty, elevated asset prices and the risk of sticky inflation. As always, we hope for the best, but these complex forces reinforce why we prepare the Firm for a wide range of scenarios.”
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ii round-up:
JPMorgan Chase & Co (NYSE:JPM) today detailed quarterly revenue and earnings that beat Wall Street forecasts, helped by increased demand for AI exposure via M&A activity and related stock market investments.
Third-quarter revenue to late September climbed 9% to $47.12 billion, pushing earnings up 16% to $5.07 per share. Analysts had expected outcomes of $45.4 billion and $4.84 per share respectively. Investment banking fees rose 16% from a year ago to $2.6 billion, with an 11% increase in the tech heavy Nasdaq Composite index in Q3 helping market related revenues jump 25% to $8.9 billion.
Shares in the Dow Jones company initially rose in pre-market trading, then fell around 3% in opening US deals as a broader market sell-off resumed on fears about US-China tensions. Shares in JP Morgan came into these latest results up by more than a quarter so far in 2025. China/Hong Kong focused HSBC Holdings (LSE:HSBA) is up by a similar amount. The Dow index has gained 7% year-to-date.
Headquartered in New York, JP Morgan employs around 300,000 people globally. Total revenues at its Commercial and Investment Banking division improved 17% from a year ago to $19.9 billion.
An additional 400,000 current accounts and a 6% increase in average deposits from Q3 2024 helped Consumer and Community related divisional revenues climb 9% to $19.5 billion.
Supporting a broader government initiative to aid US national and economic security, JP Morgan recently announced plans to invest up to $10 billion in areas including defence and aerospace, energy technology, and frontier and strategic technologies such as quantum computing.
Quarterly net inflows of $109 billion to the bank’s Wealth management division drove funds under management up 18% from a year ago to $4.6 trillion.
A quarterly dividend payment of $1.50 per share, and payable to eligible shareholders on 31 October, is up from the prior quarter’s $1.40 a share. Fourth-quarter and full-year results are scheduled for 13 January.
ii view:
Formed in the year 2000 via the merger of JP Morgan and Chase Manhattan, the group today competes against rivals including Citigroup Inc (NYSE:C), Wells Fargo & Co (NYSE:WFC) and The Goldman Sachs Group Inc (NYSE:GS). Geographically, the US generated its biggest slice of revenues during 2024 at 79%. That was followed by the combined Europe, Middle East and Africa regions at 13%, with Latin America and the Caribbean the balance of 2%.
For investors, concerns about a potential easing in customer activity during trade war uncertainty now persist. The broad move by banks online now leaves them more vulnerable to cyber-attack. An estimated price-to-net value of around 2.5 times sits comfortably above many rivals, suggesting the shares are not obviously cheap, while plans for an eventual replacement of CEO Jamie Dimon have yet to be made.
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On the upside, the benefits of a diversified business model have regularly seen strong conditions at one division countering challenges at another. JP Morgan has no direct business in China, America’s main trade rival. The bank's finances remain robust given a capital cushion, or CET1 ratio of over 14.5%, while a forecast dividend yield of close to 2% is not to be ignored.
In all, and while trade war risk remains, this giant of the US banking industry continues to justify its place in many already diversified investor portfolios.
Positives:
- Business diversity
- Robust balance sheet
Negatives:
- Economic outlook uncertainty
- Heightened wage costs
The average rating of stock market analysts:
Buy
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