ii view: JP Morgan Q3 growth falls short

A diversity of operations and with higher interest rates expected to benefit the annual performance. Buy, sell, or hold?

13th October 2026 16:11

by Keith Bowman from interactive investor

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Third-quarter results to the 30 September

Adjusted revenue up 8% to $50.91 billion
Adjusted earnings per share up 10% to $5.57 per share
Quarterly dividend of $1.65 per share, up from Q2’s $1.50 per share

Chief executive Jamie Dimon said:

“The US economy continued to be fuelled by strong business investment and ongoing consumer spending. However, large fiscal deficits, sticky inflation, elevated asset prices, rising interest rates and geopolitical conditions continue to shift under the surface. These forces may be manageable, but we remain prepared for a wide range of outcomes.”

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ii round-up:

JPMorgan Chase & Co (NYSE:JPM) today detailed mixed results against the backdrop of an ongoing boom and buildout in AI infrastructure.

Third-quarter revenues up 8% year-over-year to $50.91 billion just missed Wall Street forecasts of $51.22 billion, hindered by slowing growth in equity sales and investment banking fees. Expected full-year net interest income of $106.2 billion is up from a forecast of $105.5 billion in Q2, pushed by higher interest rates and balance sheet growth.

Shares in the Dow Jones company swung between losses and gains in post results US trading having come into these latest numbers up by close to a tenth over the last year. That’s similar to the Dow Jones itself over that time. Restructured rival Citigroup Inc (NYSE:C) is up by just over a third in the last year.

JP Morgan operates via the three divisions of Commercial and Investment Banking (CIB), Consumer and Community Banking (CCB), and Asset Wealth Management (AWM).

A one-fifth jump in CIB profits to $8.2 billion helped drive group-wide adjusted earnings up by a tenth from a year ago to $5.57 per share. Equity sales up 49% from a year ago to $5 billion eased from growth of 86% and sales of $6 billion in the second quarter. Growth in investment banking fees halved from the prior quarter to 15% and $3 billion.

CCB sales climbed 9% to $21.2 billion, aided by higher card services and auto sales, but countered by reduced home lending revenues.

A 13% increase in assets under management from a year ago to $5.2 trillion pushed AWM profit up 11% to $1.8 billion.

A quarterly dividend payment of $1.65 per share, and payable to eligible shareholders on 31 October, is up from $1.50 in the second quarter. Fourth-quarter results are scheduled for 13 January.

ii view:

Formed in the year 2000 via the merger of JP Morgan and Chase Manhattan, the bank today employs over 300,000 people. Geographically, North America made most revenues in 2025 at 77%. That was followed by the combined Europe, Middle East and Africa regions at 13%, Asia Pacific 8%, and Latin America and the Caribbean the balance of 2%. JP Morgan rivals include Morgan Stanley (NYSE:MS), The Goldman Sachs Group Inc (NYSE:GS) and even UK bank and former buyer of Lehman Brother assets, Barclays (LSE:BARC).

For investors, elevated energy costs and high interest rates could yet slow US consumer spending, reducing demand for loans. A full trade deal between the US and China has yet to be agreed, with a poor deal potentially bad for US companies and their banks. 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 announced.

More favourably, the benefits of a diversified business model have regularly seen strong conditions for one division countering challenges at another. The bank has no direct business in China. JP Morgan’s finances remain robust given a capital cushion, or CET1 ratio of 14.1%, while more than 10 years of annual consecutive dividend increases leave the shares on forward dividend yield of close to 2%.

In all, and while risks remain, this bellwether of the US economy continues to justify its place in many diversified investor portfolios.

Positives:

Business diversity
Robust balance sheet

Negatives:

Economic outlook uncertainty
Heightened wage costs

The average rating of stock market analysts:

Strong hold

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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