JPMorgan Chase reported higher third-quarter profit Tuesday as volatile markets boosted trading activity and investment-banking revenue, but the largest U.S. bank still delivered a rare earnings miss as parts of Wall Street’s dealmaking engine slowed.
Net income reached $15.3 billion, or $5.57 per share, for the three months ended September 30, compared with $14.4 billion, or $5.07 per share, a year earlier. Analysts had expected approximately $5.85 per share.
The miss was JPMorgan’s first against quarterly profit expectations since the fourth quarter of 2023.
Markets remained a major source of strength.
Revenue from JPMorgan’s markets division increased 15% from a year earlier as investors repositioned portfolios around interest rates, elevated energy prices and geopolitical volatility.
Equities trading was particularly strong, rising 49%. Fixed-income trading revenue, however, declined 4%, contributing to the weaker-than-expected overall result.
Investment-banking fees increased 14% from a year earlier but fell 8% sequentially as momentum in mergers, acquisitions and new listings moderated.
The divergence matters because Wall Street entered earnings season expecting large U.S. banks to benefit from volatile financial markets, elevated interest rates and an active capital-markets environment.
JPMorgan’s results suggest those benefits remain substantial but increasingly uneven.
Consumer banking remained resilient. Net interest income excluding markets increased 6% to $24.7 billion, while average loans expanded about 10%.
The bank now expects approximately $106.2 billion of full-year net interest income and has provided a preliminary 2027 estimate of about $107 billion.
Chief Executive Jamie Dimon continued to describe the U.S. economy as resilient, supported by consumer spending and business investment, even as investors contend with high borrowing costs, fiscal risks and uncertainty surrounding the next stage of Federal Reserve policy.
For markets, JPMorgan’s report establishes an important benchmark for the third-quarter earnings season.
The next question is whether other large U.S. banks show the same pattern: strong trading and interest income but softer dealmaking and pressure from elevated financing costs.
